Investor Presentation
for Financial Results

Fiscal Period Ended February 2023
(42nd Fiscal Period)
Security Code：8961

Asset Management Company
MORI TRUST Asset Management Co., Ltd.
0Contents
1. Scheme of the Merger and Characteristics of MORI
TRUST REIT, Inc. (New MTR)

7. Initiatives Related to ESGFundamental Principles and Characteristics of New MTR

P.03





Scheme of the Merger

P.04



Investment Policy and Portfolio Summary of New MTR

P.05

2. Overview of the Settlement for 42nd FP Ended
February 2023 of MORI TRUST REIT, Inc.


Fiscal Period Ended February 2023 (42nd FP) Settlement Highlights

P.07



Overview of the Settlement for the Fiscal Period Ended February 2023

P.08

3. Overview of the Settlement for 14th FP Ended
February 2023 of MORI TRUST Hotel Reit, Inc.


Operational Highlights of MORI TRUST Hotel Reit, Inc.

P.10



Summary for the 14th FP Results of MORI TRUST Hotel Reit, Inc.

P.11



14th FP Operating Results by Property

P.12

4. Forecasts for the Fiscal Period Ending August 2023
(43rd FP) and February 2024 (44th FP)Future Outlook Aimed at Growth in Distribution per Unit

Intensive Investment in High-quality Assets

Portfolio Consisting Primarily of High-quality Properties Developed

P.17

Comparison with forecast for Fiscal Period Ending February 2024 (44th FP)

by the Sponsor

P.36

Broad Collaboration with the Mori Trust Group

P.37



Mori Trust Group

P.38



Major Hotels Developed, Held and/or Operated by Mori Trust Group

P.39



Major Hotel Development Projects Underway by Mori Trust Group

P.40

9. Appendix


P.18- Maximizing the Use of Sponsor Support and Return to a Growth Path -5. External and Internal Growth Strategy of new MTR

Entry Restrictions in Japan and China
and Overview of Nationwide Travel Discount Program





P.42

Performance of each hotel assets (Hilton Odawara・Courtyard by Marriott
Tokyo Station・Courtyard by Marriott Shin-Osaka Station)

P.43[Reference] Timing of Compensating for the Difference from the Minimum
Guaranteed Rent

P.46



Financial Statements for the FP ended February 2023 (42nd FP)

P.47



Financial Statements for the FP ended February 2023 (14th FP)

and Forecast for the Previous Term (Fiscal Period Ending August 2023
(43rd FP))

P.35



Comparison with Previous Forecast for Fiscal Period Ending August 2023
(43rd FP) (as of November 2022)



P.16

P.31

8. Characteristics of New MORI TRUST REIT, Inc.

Summary of Forecasts for the Fiscal Period Ending August 2023 (43rd FP)
and February 2024 (44th FP)



P.15

Initiatives Related to ESG

of MORI TRUST Hotel Reit, Inc.

P.50



Changes in Indicators

P.51



Changes in Asset Size, LTV and Distribution Per Unit

P.52



Portfolio List after the Merger (As of March 1, 2023)

P.53



Summary of External Growth Strategy

P.20



Appraisal Values of Portfolio Properties at the Fiscal Period-End

P.54



Track of Asset Size Growth and External Growth

P.21



Changes in Occupancy Rate

P.56



External Growth Through Acquisition of Properties Developed by aPortfolio Summary and Breakdown of Property-Related Revenues/Expenses P.57



Portfolio Data of Properties Owned of MORI TRUST Hotel Reit, Inc.

P.61



Interest-Bearing Liabilities after the Merger (As of March 1, 2023)

P.62

Sponsor (Additional Acquisition of Kamiyacho Trust Tower)




P.22

Mori Trust Group’s Track Record of Developing a Variety of
High-quality Assets

P.23



Investors

P.63

Summary of Internal Growth Strategy

P.24



Changes in Unit Prices

P.65



Changes in Vacancy Rate and Rent per Unit in Major Cities

P.66



Asset Management Company Remuneration Methods (After March 1, 2023) P.67

6. Financial Status


Financial Status

P.27



Organization chart of New MTR

P.68



Accounting of Goodwill

P.29



Notes

P.69

1

Scheme of the Merger and Characteristicsof MORI TRUST REIT, Inc. (New MTR)

Fundamental Principles and Characteristics of New MTR
MTR, investing mostly in office buildings that generate a stable cash flow, and MTH,
investing in hotels with growth potential, merge together to create a new MTR.
MORI TRUST Sogo Reit, Inc. (MTR)

MORI TRUST Hotel Reit, Inc. (MTH)

MORI TRUST REIT, Inc. (New MTR)

Creation of a comprehensive REIT with offices and hotels as its core assets,
which is truly equipped with asset potential, stability and growth potential
The new MTR will be operated guided by the principles of stability, growth, continuity,
trust, social responsibility and sharing rewards shared among the Mori Trust Group
companies.
Stability

GrowthBuild a portfolio that has both qualities.

Continuity

Trust

Earn the trust of investors through continuous investment.

Socialresponsibility

Sharingrewards

Maximize unitholder value associated with governance.
3

Scheme of the Merger
MORI TRUST Sogo Reit, Inc. and MORI TRUST Hotel Reit, Inc. signed a merger
agreement on November 22, 2022, with the goal of increasing unitholder value andfollowing approval at general meeting of unitholders for both investment corporations,merged on March 1, 2023.
•

Method of the
Merger• MTR:MTH = 1:1.84 (Conversion before division MTR:MTH＝1:0.92)(MTR’s 1.84 investment units after division are allotted to each investment unit of MTH.)

Merger ratio
Investment unit
spilt
Resolution of thegeneral meeting ofunitholders

Sponsors

Absorption-type merger
Surviving investment corporation: MORI TRUST Sogo Reit, Inc. (MTR)→The trade name was changed to MORI TRUST REIT, Inc. (New MTR).
Dissolving investment corporation: MORI TRUST Hotel Reit, Inc. (MTH)•

MTR conducted a one-to-two investment unit split to ensure the allotment of one ormore investment units of MTR to the unitholders of MTH.

•

Approval (special resolution) for the proposal for the merger agreement at each of
MTR’s and MTH’s general meeting of unitholder was approved.

MORI TRUST CO., LTD.

Mori Trust Hotels & Resorts Co., Ltd.

Double sponsor support
Investment
Corporation(New MTR)
MORI TRUST Hotel Reit, Inc

MORI TRUST Sogo Reit, Inc.

(Surviving investment corporation)

The Merger(Dissolving investment corporation)

4

Investment Policy and Portfolio Summary of New MTR・Pursue Asset Potential, Stability and Growth Potential with Offices and Hotels as Core Assets
・Increase in portfolio stability and growth potential through the diversification of use and expansion of property scale
Investment Policy of New MTR

Portfolio Summary of New MTR

Use of investment
Core
Assets

New MTR

Officebuildings

40 - 80%

Hotels20 - 55%

Other(Retail facilities,
Residential)

Other
1%

Officebuildings

Hotels6%

Ratio byasset class

14%
Hotelsfacilities

Office20%

buildings

30%

1%

Retail55%

Officebuildings
73%+

Hotels100%

Up to 30%

60% or more

Other

(metropolitanarea, ordinancedesignated cities,
etc.)

RetailMTH
OtherHotelsfacilities

Area of investment
Central Tokyo

MTR

Up to 40%

Regional
ratios

Other

Other

4%
Major Cities

4%
Major Cities

across Japan

Across Japan

16%

18%

Central

Other+

Central
Tokyo

Tokyo

79%

80%

Major Cities

6%

Across Japan
14%

CentralTokyo
80%

Major cities across Japan
Famous tourist sites*Chiyoda-ku, Chuo-ku, Minato-ku, Shinagawa-ku,
Shibuya-ku and Shinjuku-ku*No investment ratio for hotels are set for theindividual investment areas.

Ratio of
top 5
properties

Tokyo

Tokyo

Shiodome

Shiodome

Building Kamiyacho
18% Trust Tower

Other
45%

11%

Kioicho
Building
7%

Shangri-La
ON Building
9%

Tokyo
10%

Other

Building

33%

25%

Kamiyacho
Trust Tower+

ON Building
12%

Kioicho Building
9% SHIBUYA FLAG
11%
10%Courtyard Hilton
Tokyo Odawara
6%

14%
Courtyard

Shangri-La
Tokyo

Shin-Osaka 14%

40%
Hotel Sunroute
Plaza Shinjuku
26%

Acquisition
price

470,889 million yen

323,972 million yen

123,217 million yen

Number ofproperties

22 properties

17 properties

5 properties(Note) The acquisition price at MTR as of the end of February 2023 is on an acquisition price basis, and the acquisition price at MTH is on an appraisal value basis as of the end of February 2023.
The acquisition price for the new MTR after the Merger will be calculated, assuming the property holdings at MTH are acquired at the appraisal value as of the end of February 2023.
Ratio by asset class, Regional rations, Ratio of top 5 properties, Size per property are calculated by acquisition price. (Those for the MTH and the new MTR after the Merger will be calculated,assuming the property holdings at MTH are acquired at the appraisal value as of the end of February 2023.)
The numeric values for the new MTR include property acquisitions and dispositions that have already been announced

5

Overview of the Settlement for 42nd FP Ended February 2023
of MORI TRUST REIT, Inc. (Former MORI TRUST Sogo Reit, Inc.)Fiscal Period Ended February 2023 (42nd FP) Settlement Highlights
Distribution per Unit

2,545 yen （up 83 yen vs. forecast）
Of which, distribution excluding temporary factors is 1,839 yen (up 97 yen from forecast)* The 42nd fiscal period (ending February 28, 2023） is an irregular length of five months due to the merger
with MORI TRUST Hotel Reit, Inc. (dated March 1, 2023).
* Temporary factors: appropriation from internal reserves, factors related to gain on sale of real estate properties, etc.

As of February 28, 2023 (change from the previous fiscal period in parentheses)

Debt

Asset
Number of property: 17 properties (up 1 property)

Asset size: 323.9 billion yen (down 0.8 billion yen) (Note 1)

Balance of interest-bearing debt:（down 3.5 billion yen）

Average interest rate for borrowings
0.49% (up 0.01pt)
during fiscal period:

47.3% (down 0.6pt)

LTV：
Occupancy rate:* Sublease basis

97.6% (up 1.1pt)

Long-term rating of issuers:(Note 3)

Investment ratio:[by area] Tokyo metropolitan area 78.5% (down 1.7pt)[by use] Office building
73.0% (up 1.8pt)

AA (stable)/ Japan Credit Rating Agency, Ltd.

93.1% (up 1.5pt) (Note 2)

Appraisal values of portfolio properties at the fiscal
period end:
348.8 billion yen (down 1.2 billion yen)
Unrealized profit: 43.9 billion yen (down 0.1 billion yen)

152.5 billion yen

EquityNumber of units issued:
NAV per unit:

1,320,000 units (–)
150,976 yen (up 0.1%)(Note 4)

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

Investment unit price:

151,600 yen/ closing price on February 28, 2023)

7

Overview of the Settlement for the Fiscal Period Ended February 2023 (42nd FP)
Distribution Per Unit

2,545 yen (up 83 yen vs. forecast)• Operating revenues exceeded the forecast by 90 million yen due tofactors such as progress with leasing.
• Operating income was 187 million yen more than forecast, as
brokerage fees, utilities expenses, and repair expenses were lower
than forecast.
• Distribution per unit excluding temporary factors exceeded theforecast by 97 yen to become 1,839 yen.
（Unit：Million yen）

41st FP(Ended Sep. 2022)

ActualOperating revenues
Rental revenues
Gain on sale of real estate
Operating expenses
Property-related expenses
Property and other taxes
Overhead expenses
Depreciation
Selling, general andadministrative expenses
Profits and losses fromreal estate rental business
Earnings before depreciation
and amortization (NOI)
Operating income
Non-operating revenues
Non-operating expenses
Ordinary income
ProfitTotal distribution
Distribution per unit (yen)Distribution per unit excluding
temporary factors (yen) (*)
Total number of outstanding
investment units

(A)
(a)

(b)

(c)

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

42nd FP(Ended Feb. 2023)

Forecast

vs. forecast

42nd FP(Ended Feb. 2023)(Five Months)

Actual(Five Months)

Change from
Forecast

(B)

(C)

(C-B)

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

7,258
5,828
1,430
3,200
2,710
879
916
914

▮ Main factors in change

90
48
41
-97
-83
-0
-88
4

416

503

490

-13

(d)=(a)-(b)

3,844

2,985

3,117

132

(d)+(c)

4,960

3,895

4,032

136

3,428
0
385
3,043
3,331

3,870
0
327
3,543
3,450

4,057
0
326
3,731
3,614

187
0
-0
188
163

3,960
3,000

3,249
2,462

3,359
2,545

109
83

2,305

1,742

1,839

97

1,320,000

1,320,000

1,320,000－

Operating revenues<Property-related revenues>● Increase in rent
● Increase in other lease business revenues● Increase in gain on sale of real estate(Shinbashi Ekimae MTR Building)

37 mn yen
11 mn yen
41 mn yen

Operating expenses<Property-related expenses>● Decrease in brokerage fee● Decrease in utilities expenses● Decrease in repair expenses● Decrease in other expenses* Temporary factors: appropriation from internal reserves, factors related to gain on sale of real estate properties, etc.

- 24 mn yen- 25 mn yen- 24 mn yen- 10 mn yen■ Balance of internal reserves（Unit: Million yen）

41st FP

42nd FP(Ended Sep.2022)(Ended Feb.2023)

1,636

2,008

ActualActualChange from
Previous FP
(*)

371

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

8ディスクレーマー

Overview of the Settlement for 14th FP Ended February 2023
of MORI TRUST Hotel Reit, Inc.

9

Operational Highlights of MORI TRUST Hotel Reit, Inc.
Money Delivered Due to Merger per Unit

Results for the 14th FP
ended February 2023

1,419 yen

Asset size

5 properties（Note 1）

Appraisal value

1,062 mn yen(+0 yen from forecast)

1,433 mn yen(+0 yen from forecast)

709 mn yen

Net income(+5 mn yen from forecast)

EquityInterest-bearing debt

53.9 bn yen

NAV（Note 6）49.1 %

NAV per unit

（Note 7）107.6 bn yen

LTV

123.2 bn yen

Fixed-rate debt ratio

89.9 %

19.1 bn yen

Average interest rate

0.50 %

Investment units
outstanding

Average remaining
maturity of debt

1.7 years

Mori Trust Group’s
holding ratio

Unrealized gain

（Note 2）

NOI yield（Note 3）

2.7 %Yield after
depreciation（Note 4）2.0 %No. ofguestrooms

Real estate rental income

Debt

No. of properties(+0 yen from forecast)

NOI(+12 yen from forecast)

Assets1,730 mn yen

Operating revenues（Note 5）Market capitalization （Note 8）

69.1 bn yen
138,208 yen
66.9 bn yen
500,000 units（Note 9）36.8 ％

1,469 rooms(Note 1) Total acquisition price(Note 2) Unrealized gain = Appraisal value at end of period － Book value at end of period(Note 3) NOI yield = NOI for the 14th FP (annualized) / Total acquisition price(Note 4) Yield after depreciation = Real estate rental income after depreciation for the 14th FP (annualized) / Total acquisition
price(Note 5) LTV ＝ Interest-bearing debt at end of period / Total assets at end of period(Note 6) NAV = Net assets at end of period － Total distributions + Unrealized gain

(Note 7) NAV per unit = NAV / Investment units issued and outstanding(Note 8) Market capitalization = Investment unit price (closing price on February 24, 2023) ×
Investment units issued and outstanding(Note 9) Represents the ratio based on the number of investment units held by Mori Trust Group asof the end of the 14th FP

10

Summary of the 14th FP Results of MORI TRUST Hotel Reit, Inc.
Money Delivered Due to Merger per Unit (Actual)：1,419 yen（+12 yen from Forecast）(Unit: Million yen)
14th FP

14th FP(Ended Feb. 2023)(Ended Feb. 2023)

Difference(Ended Feb. 2022)

Difference

1,730

1,730

0

1,423

306

1,730

1,730

0

1,423

Shangri-La

562

562

-

Hilton Odawara

187

187

CY Tokyo

169

CY Shin-Osaka
Sunroute

Item

ActualOperating revenues
Real estate rental revenues(i)Operating expenses

Forecast

12th FP
Actual306

Shangri-La

No change

533

29

Hilton Odawara+0 mn yen

0

170

17

CY Tokyo

No change

CY Shin-OsakaNo change

169

-

25

144

Sunroute

No change

157

157

-

41

116

653

653

-

653

-

797

800

-2

779

18

668

669

-0

652

16

（Depreciation）

(iii)

370

371

-0

364

6

129

131

-1

127

1

Real estate rental income(iv)=(i)-(ii)

1,062

1,061

0

771

290

NOI

(iv)+(iii)

1,433

1,432

0

1,135

297

Operating income

932

930

2

644

288

Ordinary income

710

704

5

531

178

Net income

709

703

5

530

178

Total cash distributions

709

703

6

530

179

500,000

500,000-

500,000

-

1,419

1,407

12

1,061

358

Distribution per unit (yen)■Operating revenues+0 mn yen(ii)

Investment units outstanding (units)（from 14th FP forecast）
Real estate rental revenues

Real estate rental expenses

Other operating expenses

Major factors of change■Operating expenses
Real estate rental expenses- 1 mn yen

Other operating expenses- 2 mn yen（from 12th FP actual : YoY comparison）■Operating revenues
Real estate rental revenues+306 mn yen

Shangri-La+29 mn yen

Hilton Odawara+17 mn yen

CY Tokyo+144 mn yen

CY Shin-Osaka+116 mn yen■Operating expenses
Real estate rental expenses
Increase in repairs andmaintenance expenses
Increase in tax and public dues

+16 mn yen+4 mn yen
+5 mn yen

Increase in depreciation+7 mn yen

Other operating expenses+2 mn yen■Non-operating expenses
Decrease in expenses for the Merger- 3 mn yen 11

14th FP Operating Results by Property (Year-on-Year Comparison)
Shangri-La Tokyo (SL)Base month for rent
Rent recording month

12th FP (Operating period: Sep. 1, 2021 to Feb. 28, 2022)
2021
May

Jun.

Jul.

Aug.

Oct.

Nov.

Dec.

Sep.

2021

2022

Sep.

53

Rent (million yen)

Difference from the minimum guaranteed
rent (million yen)

Oct.

47

59

Jan.

124

Feb.

180

67

14th FP (Operating period: Sep. 1, 2022 to Feb. 28, 2023)
2022

12th
FP
total

May

Jun.

Jul.

Aug.

Oct.

Nov.

Dec.

2022

533

Oct.

2023

Sep.

90

80

84

-

-

Sep.

77

Jan.

103

Feb.

126

14th
FP
total
562
-

-

Hilton Odawara Resort & Spa (HO)12th FP (Operating period: Sep. 1, 2021 to Feb. 28, 2022)
Base period for calculation of rent
Rent recording month

2021

2022

Sep.

Oct.

27

Rent (million yen)

Nov.

27

Courtyard by Marriott Tokyo Station (CYT)
Base month for rent
Occupancy rate（%）
Average daily rate (ADR) (yen)RevPAR（yen）
Rent recording month

Dec.

27

Jan.

27

Feb.

27

14th FP (Operating period: Sep. 1, 2022 to Feb. 28, 2023)

12th
FP
total

Jul. 2020 to Jun. 2021

27

Jul. 2021 to Jun. 2022
2022

170

25.0%
12,9193,224

24.2%
13,832
3,346

22.8%
13,154
3,001

29.4%
12,621
3,705

Oct.

Nov.

Dec.

2021

0

Rent (million yen)

41.0%
12,892
5,284

44.7%
13,136
5,870

31.2%
13,095
4,068

Feb.

12th FP
total

2022

Sep.

30

*Total includes rent revenues and other revenues.

12th FP (Operating period: Sep. 1, 2021 to Feb. 28, 2022)
2021
12th FP
avg.
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.

0

0

Difference from the minimum guaranteed
rent (million yen)

Jan.

0

2

0

2

2023

Sep.

Oct.

30

Nov.

30

Jan.

30

30

Feb.

30

187

*Total includes rent revenues and other revenues.

14th FP (Operating period: Sep. 1, 2022 to Feb. 28, 2023)
2022
14th FP
avg.
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.

73.6%
17,70913,03871.2%
19,24013,70061.5%
19,133
11,77671.6%
20,515
14,684

Oct.

Nov.

Dec.

2022

82.4%
23,72919,54486.6%
25,75422,303

74.4%
21,261
15,827Feb.

14th FP
total

2023

Sep.

15

19

11

22

22

Dec.

14th
FP
total

Jan.

19

40

42

148
21

21

Courtyard by Marriott Shin-Osaka Station (CYO)
Base month for rent
Occupancy rate（%）
Average daily rate (ADR) (yen)RevPAR（yen）
Rent recording month
Rent (million yen)
Difference from the minimum guaranteed
rent (million yen)

12th FP (Operating period: Sep. 1, 2021 to Feb. 28, 2022)
2021
12th FP
avg.
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.

19.5%
15,376
2,998

24.4%
15,541
3,796

19.1%
15,725
3,010

22.4%
15,020
3,364

Oct.

Nov.

Dec.

2021

28.8%
15,058
4,338

38.0%
15,061
5,718

25.3%
15,2993,868

Feb.

12th FP
total

2022

Sep.

0

0

0
35

Jan.

0

0

5

6
35

14th FP (Operating period: Sep. 1, 2022 to Feb. 28, 2023)
2022
14th FP
avg.
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.

49.6%
15,048
7,457

49.5%
15,971
7,898

43.6%
15,893
6,931

52.8%
16,017
8,453

Oct.

Nov.

Dec.

2022

67.7%
17,316
11,715

89.7%
18,242
16,363

58.7%
16,672
9,787

Feb.

14th FP
total

2023

Sep.

11

10

6
34

11

Jan.

31

51

123
34

12

14th FP Operating Results by Property (Period-on-Period Comparison)
Shangri-La Tokyo (SL)Base month for rent
Rent recording month

13th FP (Operating period: Mar. 1, 2022 to Aug. 31, 2022)
2021
2022
Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

Apr.

May

Jun.

Jul.

Aug.

2022
Mar.

147

Rent (million yen)

Difference from the minimum guaranteed
rent (million yen)

109

66

50

70

14th FP (Operating period: Sep. 1, 2022 to Feb. 28, 2023)
2022

13th
FP
total

May

Jul.

Aug.

Oct.

Nov.

Dec.

2022

530

86

Jun.

Oct.

2023

Sep.

90

80

84

-

-

Sep.

77

Jan.

103

Feb.

126

14th
FP
total
562
-

-

Hilton Odawara Resort & Spa (HO)13th FP (Operating period: Mar. 1, 2022 to Aug. 31, 2022)
Base period for calculation of rent
Rent recording month

2022
Mar.

Apr.

26

Rent (million yen)

26

Courtyard by Marriott Tokyo Station (CYT)
Base month for rent
Occupancy rate（%）
Average daily rate (ADR) (yen)RevPAR（yen）
Rent recording month

Jun.

May

26

Jul.

26

Aug.

26

14th FP (Operating period: Sep. 1, 2022 to Feb. 28, 2023)

13th
FP
total

Jan. 2021 to Dec. 2021

26

161

38.7%
12,477
4,827

41.4%
13,4095,552

49.3%
14,254
7,023

54.0%
16,421
8,860

57.6%
16,254
9,359

48.4%
14,443
7,071

Apr.

May

Jun.

Jul.

Aug.

13th FP
total

2022
Mar.

1

Rent (million yen)

2022

0

0

Difference from the minimum guaranteed
rent (million yen)

3

1

9

15

2023

Sep.

30

*Total includes rent revenues and other revenues.

13th FP (Operating period: Mar. 1, 2022 to Aug. 31, 2022)
2021
2022
13th FP
avg.
Dec.
Jan.
Feb.
Mar.
Apr.
May

49.0%
13,8696,794

Jul. 2021 to Jun. 2022
Oct.

30

Nov.

30

Jan.

30

30

Feb.

30

187

*Total includes rent revenues and other revenues.

14th FP (Operating period: Sep. 1, 2022 to Feb. 28, 2023)
2022
14th FP
avg.
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.

73.6%
17,70913,03871.2%
19,24013,70061.5%
19,133
11,77671.6%
20,515
14,684

Oct.

Nov.

Dec.

2022

82.4%
23,72919,54486.6%
25,75422,303

74.4%
21,261
15,827Feb.

14th FP
total

2023

Sep.

15

19

11

237

237

Dec.

14th
FP
total

Jan.

19

40

42

148
21

21

Courtyard by Marriott Shin-Osaka Station (CYO)
Base month for rent
Occupancy rate（%）
Average daily rate (ADR) (yen)RevPAR（yen）
Rent recording month
Rent (million yen)
Difference from the minimum guaranteed
rent (million yen)

13th FP (Operating period: Mar. 1, 2022 to Aug. 31, 2022)
2021
2022
13th FP
avg.
Dec.
Jan.
Feb.
Mar.
Apr.
May

46.4%
15,510
7,192

29.5%
14,4204,252

33.1%
14,473
4,797

38.0%
14,904
5,666

40.2%
15,3206,160

42.8%
15,434
6,603

38.5%
15,020
5,800

Apr.

May

Jun.

Jul.

Aug.

13th FP
total

2022
Mar.

11

0

0
378

5

4

8

29
378

14th FP (Operating period: Sep. 1, 2022 to Feb. 28, 2023)
2022
14th FP
avg.
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.

49.6%
15,048
7,457

49.5%
15,971
7,898

43.6%
15,893
6,931

52.8%
16,017
8,453

Oct.

Nov.

Dec.

2022

67.7%
17,316
11,715

89.7%
18,242
16,363

58.7%
16,672
9,787

Feb.

14th FP
total

2023

Sep.

11

10

6
34

11

Jan.

31

51

123
34

13

Forecasts for the Fiscal PeriodEnding August 2023 (43rd FP) and February 2024 (44th FP)

Future Outlook Aimed at Growth in Distribution per Unit
Realizing profitability recovery through improvement of Shiodome and Shin-Yokohama occupancy rates andreplacement of Shinbashi and Sendai and external growth through additional acquisition of KamiyachoFP
Occupancy Rates

Building

Year/
Month for Tokyo Shiodome

43rd FP (1st FP after the Merger)
Ending August 2023
Aug.
Before Feb.2023 Mar.
Apr.
May
Jun.
Jul.
2023

44th FP Ending February 2024

Before 42nd FP

No. of tenants
41st FP(Sep. 2022)

14
66.5%

Occupancy Rates
for Shin-yokohama
TECH Building

41st FP(Sep. 2022)

17
71.7%

87.5% 90.2%

42nd FP(Feb. 2023)

76.5% 76.5%
18
70.8%
20

42nd FP(Feb. 2023)

18
78.0%

80.1%
18

85.5%
19

23

95.8% 95.8% 95.8%

24

Replacing Shinbashi with Sendai

1Gain on sale occurs(partly for internal
reserves)

Acquisition of
Sendai (Office)

Oct.

Dec.

Jan.
2024

Feb.

After Feb. 2024

98.6%
26

25

Nov.

Aiming to maintain andimprove occupancy rate(1) Utilizing the strong asset value of these properties and leasing up
vacant space at office buildings while diversifying tenants
89.1%
20

Aiming to further
improve occupancy rate

Sale of Shinbashi ‘23/2/28(Retail Facilities) First sale of Shinbashi(sale of one-third co-ownership interest)Three-third coownershipinterest (100%)Sep.

After 45th FP’23/8/31
Second sale of Shinbashi(sale of one-third co-ownership interest)

Two-third co-ownership interest

2

Gain on sale occurs(partly offsetting merger
expenses)’24/2/29
Third sale of Shinbashi(sale of one-third co-ownership interest)

One-third co-ownership interest

3

Sale
Completed

Gain on sale occurs(partly for internal
reserves)(2) Replacing Shinbashi (occupancy rate: 0%) with Sendai (occupancy rate: 99%) and
improving profitability while recording gain on sale over three fiscal periods
1

One-third co-ownership interest‘23/2/28
First acquisition of Sendai(acquisition of one-third co-ownership interest)

Kamiyacho‘23/3/1
Additional acquisition of Kamiyacho(Office area, 1.5 Floors)2

Two-third co-ownership interest

Three-third co-3 ownership interest(90.845%)‘23/8/31‘24/2/29
Second acquisition of Sendai
Third acquisition of Sendai(acquisition of one-third co-ownership interest) (acquisition of one-third coownership interest)(3) Increasing the distribution level throughsponsor support and leveraging the Merger effect15

Summary of Forecasts for the Fiscal Period Ending August 2023 (43rd FP)
and February 2024 (44th FP)
Forecast Distribution per Unit
for the Fiscal Period Ending August 2023 (43rd FP)

Forecast Distribution per Unit
for the Fiscal Period Ending February 2024 (44th FP)

Distribution per unit excluding temporary factors

Distribution per unit excluding temporary factors

1,584 yen (+65 yen (+4.3%) from previous forecast)
1,367 yen (+57 yen (+4.4%) from previous forecast)
43rd FP

43rd FPPrevious
Forecast

Revised
Forecast(Ending Aug. 2023) (Ending Aug. 2023)

Item(Million yen)

(as of Nov. 2022)(as of Apr. 2023)

A
11,338B
11,609Change from
Previous
Forecast

B-A

1,600 yen (+16 yen (+1.0%) from 43rd FP forecast)
1,371 yen (+4 yen (+0.3%) from 43rd FP forecast)

Change from
43rd FP(Ending Feb. 2024)
Revised
Forecast(as of Apr. 2023)
Forecast
44th FPC
11,652

C-B

9,940
1,398
5,286
4,048
1,228
1,282
1,537

10,180
1,428
5,297
4,057
1,227
1,288
1,541

270
240
30
11
8
-0
6
3

10,290
1,361
4,739
4,110
1,214
1,366
1,529

42
109
-66
-558
53
-12
77
-11

1,237

1,240

2

628

-611

Profits and losses from(d)=(a)-(b)real estate rental business

5,891

6,123

231

6,180

56

Earnings before depreciation
and amortization (NOI)

7,429

7,664

234

7,709

45

Profit

6,052
642
5,410
5,409

6,311
664
5,647
5,637

259
22
237
228

6,913
715
6,197
6,032

601
51
550
395

Balance of internal reserves

1,929

2,005

76

2,496

491

Distribution per unit (yen)

1,519

1,584

65

1,600

16

Distribution per unit excluding
temporary factors (yen)

1,310

1,367

57

1,371

4

Total number of outstanding
investment units

3,560,000

3,560,000－

3,560,000－

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 andadministrative expenses(d)+(c)Operating income
Non-operating expenses
Ordinary income* Temporary factors: appropriation from internal reserves, factors related to gain on sale of real estate properties, etc.

Main factors in change (Million yen)
Forecast for 43rd FP Ending Aug. 2023
(vs. previous forecast : B-A)・ Operating revenues

Increase in rent of office etc.
Increase in rent of hotel
Increase in gain on sale of real estate(Shinbashi)

+155
+89
+30

・ Non-operating expenses
Increase in interest expenses+22

Forecast for 44th FP Ending Feb. 2024
(Change from 43rd FP forecast: C-B)
・ Operating revenues
Increase in rent of office etc.
(Increase in rent of Shiodome and ShinYokohama, acquisition of Sendai etc.)
Decrease in operating revenues due toseasonal fluctuations in hotel rents
Decrease in gain on sale of real estate(Shinbashi)

+176
-67
-66

・ Operating expenses
Increase in repairs
Increase in expenses due to acquisition of
SendaiDecrease in expenses due to sale of Sendai
Absence of merger-related expenses

+41
+85
-37
-596

・ Non-operating expenses
Increase in interest expenses+51

・ Balance of internal reserves
Partial internal reserves of gain on sale of
Shinbashi

+491

16

Comparison with Previous Forecast for Fiscal Period Ending August 2023 (43rd FP)(as of November 2022)
The distribution forecast for the fiscal period ending August 2023 is higher than the previous forecast
due to internal growth accompanying the recovery of the office and hotel markets
Distribution excluding temporary factors of New MTR

Temporary factors

Distribution excluding temporary factors of MTR- Gain on sale due to first sale of Shinbashi(one-third co-ownership interest) ：+376- Expenses for the Merger: -167

Distribution excluding temporary factors of MTH

(yen)
1,600

(Note 1) Before investment unit split：3,000 yen(Note 2) Before investment unit split：2,289 yen

1,519

1,500

Increase in officerents- Shiodome:+28- Shin-Yokohama:+3- Other:+12

Temporary factors- Reduction of internal reserve

1,400

209

Temporary factors+43- CY Tokyo partial sell-off-related

1,300

347

1,200

1,100

0
1,000

Effect ofadditional
acquisition of
Kamiyacho

45

1,153

- Goodwill amortization- Anticipated interest rate
hike, etc.
Increase inhotel rents

+25

1,584

217
-11
Effect ofadditional
acquisition of
Kamiyacho

78

78(Excluding temporary factors) Distribution(Note 2)

1,144

- Gain on sale due to second sale of Shinbashi(one-third co-ownership interest)：+384- Expenses for the Merger: -167

Other(Note 1)

1,500

Temporary factors

1,310+57 yen (+4.4%)

1,367

1,099

MTR

MTH

New MTR

New MTR

41st FP

13rd FP

43rd FP

43rd FP(Ended(Ended(Ending(Ending

Sep. 2022)

Aug. 2022)

Aug. 2023)

Aug. 2023)[Actual][Actual]Previous Forecast

Revised Forecast

17Comparison with forecast for Fiscal Period Ending February 2024 (44th FP)
and Forecast for the Previous Term (Fiscal Period Ending August 2023 (43rd FP))
Through rent increases attributable to the recovery in occupancy rate of Shiodome and Shin-Yokohama andimproved profitability attributable to asset replacement of Shinbashi and Sendai, continued growth indistribution per unit is also anticipated in the forecast for the fiscal period ending February 2024
Distribution excluding temporary factors of New MTR

Temporary factors

Temporary factors- Gain on sale due to second sale of Shinbashi(one-third co-ownership interest) : +384
- Expenses for the Merger: -167

Improve profitability attributable tosecond asset replacement

（Yen）
1,650
1,600

- Gain on sale due to third sale of Shinbashi(one-third co-ownership interest) : +367
- internal reserves: -138

1,584

1,550

- Decrease in expenses due tosale of Shinbashi : +10- Increase due to acquisition of Sendai : +35

Increase in officerents of Shiodome
and Shin-Yokohama- Shiodome:+60- Shin-Yokohama:+8

1,500
1,450

- Increase repairs
and interest- Partial Vacation

1,600

-18

-91

229

+68

+2

1,350

0
1,250

Full-year contributionof rent increase
for Shiodome

Scope of hotel
rent recovery

+36

1,400

1,300

Aiming for growth in the distribution level
through internal growth and external
growth accompanying the recovery of theoffice and hotel markets

Decrease in operating
revenues due to seasonal
fluctuations in hotel rents- vs. YoY:+110(Vs. Feb. 2023 FP)

+45

217

Other

After the fiscal period Ending August 2024

(Excluding temporary factors) Distribution

1,367+4 yen (+0.3%)

1,371

Improve profitability attributable tothird asset replacement- Decrease in expenses due to sale of Shinbashi : +10- Increase due to acquisition of Sendai : +26

New MTR

New MTR

43rd FP

44th FP(Ending(EndingAug. 2023)

Feb. 2024)

18

- Maximizing the Use of Sponsor Support and Return to a Growth Path -External and Internal Growth Strategy of new MTR

Summary of External Growth Strategy(Recognition of External Environment and Future Policy)
Recognition of External Environment
SharedOfficeHotel•

Information on the sale of high-quality properties from an investment perspective is still limited and a situation in which it isdifficult to acquire properties persists•

Changes in the real estate investment market due to factors such as interest rate hikes in Japan and abroad require attention.

•

Demand for property purchases from domestic and foreign investors remains high, and transaction yields continue to be low.

•

Based on the view that the slump during the pandemic was temporary, sale transactions are continuing at prices which assume thesame cash flow as before the pandemic, and the cap rate also remains flat.

•

There is a possibility that hotel sales will be revitalized again through the ramping up of the recovery in inbound tourism fromvarious countries, including mainland China, due to the upcoming elimination of border control measures.

Future Policy•

Aiming to expand asset size through methods such as leveraging sponsor support (including not only property provision but also joint
investments, etc.) and asset replacement.

•

Along with office buildings in central Tokyo, which are highly stable but have low yields, we are actively considering properties with asset
value, including office buildings in regional cities and hotels at which reasonable yields may be expected•

To increase hotel acquisition opportunities, we are considering a wide range of projects that enable MTR to exert its strength of having ahotel operator as a sponsor, such as projects that will improve GOP or require a change of operator.

Status of Real Estate Transaction Market

Situations of Recognition of the Market Cycle
among Real Estate Investors

Changes in Number and Amount ofReal Estate Transactions
13.6

13.2
8.6

6.3

3.9

12.6
8.7 9.1

12.4
8.0

8.9

403
281

341

391

326 327

20%

40%

60%

80%

100%

80%

100%

Apr. 2016
Apr. 2017

5.2

Apr. 2018
Apr. 2019

Amount (100 billion yen)number0%

Trend in Transaction Yield of Standard
Class-A Buildings

Apr. 2020

389 385 379

319

356

413

Apr. 2021
Apr. 2022
Oct. 2022

0%
20%
40%
60%
(Forecast for half a year later as of Oct. 2022.)
Apr. 2023

Q1
2020

Q2

Q3

Q4

Q1
2021

Q2

Q3

Q4

Q1

Q2

Q3

Q4

2022

Source ︓ Prepared by the company based on Nikkei BP “NIKKEI REAL ESTATE
MARKET REPORT May 2020, Aug. 2020, Nov. 2020, Feb. 2021, May 2021,
Aug. 2021, Nov. 2021, Feb. 2022, May 2022, Aug. 2022, Nov. 2022, Feb.
2023.2”

1

2

3

4

5

6

7

8

Recession
Recovery
Expansion
Reduction
stage
stage
stage
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)

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.

20Track of Asset Size Growth and External Growth
MTR will aim for growth through the Merger and an increase in asset size by acquiring
mostly properties developed by the sponsors.
Independent growth of MTR and MTH(billion
yen)
800

New growth as New MTR

Listing of MTR stock

The Merger of MTR and MTH

Listing of MTH stock

Acquisition price
New MTR

700

MTR
MTH
Return to
growth path

600

470.8

500

400
324.0

324.0

324.0

324.7

324.0

323.9

300

200
107.2

102.0

102.0

108.5

107.7

107.6

107.6

100

0

Period
Ended

2017

2018

2019

2020

2021

Beforethe Merger

After
the Merger

Mar. 2004(Note) The acquisition prices for MTR and MTH are calculated based on the acquisition price of each period. The acquisition price for New MTR after the Merger is calculated, assuming the property holdings at MTH are acquired at theappraisal value as of the end of February 2023.

21

External Growth Through Acquisition of Properties Developed by a Sponsor(Additional Acquisition of Kamiyacho Trust Tower) Leveraging Merger EffectAcquisition Highlight (Kamiyacho Trust Tower：Office area, 1.5 Floors)
External Growth Using
the Merger Effects• An additional purchase of Kamiyacho Trust Tower from thesponsor was achieved using the purchasing capacity created by adecrease in LTV due to the merger effect.

High Asset Potential• Acquisition of property with exceptionally high asset potential builtwith the development capabilities of the sponsor, MORI TRUST

Further Increase inSponsor’s Commitment• Strong commitment of the sponsor to New MTR returning to a
growth path through maximum use of sponsor support

LTV reduced through purchase of
MTH’s assets at market value

50.0%
49.0%
48.0%
47.0%
46.0%
45.0%

LTV benchmark：50.0%

48.0%

47.9%
46.2%

September
2022年
2022
9月期末
FP

After
After
本合併後
本取得後
the
Mergerasset to beacquired

Overview of Asset to be Purchased

Overview of Kamiyacho Trust Tower (Block Name：Tokyo World Gate)

Property
name

Kamiyacho Trust Tower (Office area, 1.5 floors)

Floor Structure

Location

4-Chome Toranomon, Minato-ku, Tokyo

37th and 38th fl.:residential floors

Office building, retail facilities, medical facilities, hotels,
residences, etc.

31st - 36th fl.: hotel

Use
Number offloorsSeller38 stories with 3
basement levels

Month/yearof completion

MORI TRUST
CO., LTD.

Acquisition
March 1, 2023
date

Acquisition
23,700 millions yen
priceAppraisal
valueTokyo Edition Toranomon is the first Edition
property in Japan. Edition is the newgeneration luxury hotel brand from MarriottInternational.

March 2020

The super large floors with a ceiling height of 2.9
meters and a reference floor area of more than
1,100 tsubo enable unique layouts and support
the presentation of innovative office spaces.

24,100 millions yen(as of October 31, 2022)• Stable, high occupancy of 99.3% (as of Feb. 28, 2023)• Master lease agreement planned to be signed with thesponsor MORI TRUST• Reduce the risk of vacancies and stabilize revenues by
distributing profit and expenses for jointly operated
sections from the 6th floor to the 30th floor, including
this area, with unit owners according to theirownership shares.

3rd - 30th fl.: office

B3 - 2nd fl.: shops,
restaurants, office lobby,
parking area, etc.

The architect, Dr. Kengo Kuma, was invited asa designer and created the office lobby as aspace symbolizing Tokyo World Gate, a place
for international business and interaction.

22

Mori Trust Group’s Track Record of Developing a Variety of High-quality Assets
Since its foundation in 1951, the Group has engaged in large urban development projects mostly incentral Tokyo and operated a property ownership, leasing, operation and management business.
The Group has developed a variety of properties, particularly offices in prime locations and hotel
assets using international brands.
Examples of properties developed and operated by the Mori Trust Group

Gotenyama Trust City

Gotenyama Trust Tower
Completed in 1990

Tokyo Shiodome
Building

Tokyo Shiodome
Building
Completed in 2005

Marunouchi Trust City

Sendai Trust City

Kyobashi Trust Tower

Marunouchi Trust Tower North/Main
Completed in 2003/2008

Sendai Trust Tower
Completed in 2010

Kyobashi Trust Tower
Completed in 2014

Tokyo World Gate

Kamiyacho Trust Tower
Completed in 2020

Tokyo World Gate Akasaka(scheduled completion)

Akasaka Trust Tower
FY2024 (scheduled
completion)

Hotels to open

Tokyo Marriott Hotel
Opened in 2013
(Rebranded)

Conrad Tokyo
Opened in 2005

Shangri-La Tokyo
Invited in 2009

The Westin Sendai
Opened in 2010

Courtyard by Marriott
Tokyo Station
Opened in 2014

The Tokyo EDITION,
Toranomon
Opened in 2020

Plans for a hotel inside
Tokyo World Gate Akasaka

23

Summary of Internal Growth Strategy (1) (Recognition of External Conditions)
Recognition of External Conditions
Office • For office buildings in central Tokyo, the increase invacancy rate has slowed due to tenants moving to better
locations or relocating to larger spaces.

• In the Tokyo office market, increases in vacancy rate anddecreases in contracted rent due to the large volume of
supply of new offices in 2023 onward require attention.
• Since the vacancy rate is at a fairly high level, there may
be differences in the extent of occupancy rate recovery
depending on location and building grade.

Condition of Office Market
Changes in Vacancy Rate and Rent per Unit in Tokyo
Business Districts

Hotel • While cost increases centering on energy are seen, theADR of each hotel is also increasing as a result ofoccupancy adjustment due to surging prices and labor
shortage.
• Hotel performance is on a recovery trend with the resultsof some months exceeding that of 2019 on a single-month
basis backed by relaxation of border restrictions and theongoing nationwide travel discount program.
• Further recovery in hotel performance is expected in the
future as inbound tourists from various countries including
China will return in full swing with the elimination of border
restrictions.

Condition of Hotel Operating
Trends in MTH’s Hotel Business Results(Compared to 2019)

Proportion of Overseas Guests(Courtyard Tokyo)
80%

20%

0%

60%

-20%
40%
-40%

-60%

Earnings at 4 properties withvariable rents are trending
toward recovery versus 2019

the increase trend in thenumber of overseas
guests due to the easingof border restrictions

0%

-80%

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

20%

Shangri-La [Based on rent (linked to hotel total revenue))]
Hilton Odawara [Based on hotel total revenue]
Courtyard Tokyo [Based on RevPAR]
Courtyard Shin-Osaka [Based on RevPAR]

24

Summary of Internal Growth Strategy (2) (Future Policy)
Future Policy
Office • With progress in leasing for properties whose occupancy

Hotel • We will implement management that focus on ADR andrate has decreased (Shiodome and Shin-Yokohama),
effort will be devoted to building up the occupancy rate
at properties which have some vacancies.
• Based on tenant needs to improve their location or
relocate to larger spaces following the economy andsociety’s return to normalization after the pandemic, we
aim to achieve post-pandemic internal growth.
• In response to the surge in electricity charges, we will
mitigate the impact by proactively pursuing energysaving measures and are also considering asking tenants
to bear a portion of expenses through green lease
contracts, etc.

Forecast for Office Rental Market

Forecast for Hotel Operatings
Forecast for a Recovery in Travel Demand by
Region (Compared to 2019)

Forecast for Trends in Office Occupancy(5 Wards of Central Tokyo)

120%

100.0%

96.0%

94.9%

95.5%

96.1%

96.5%

96.8%96.8%

Europe2023

2024

Domestic

2024

2025

2025

1st half 2nd half 1st half 2nd half 1st half 2nd half
(Source) Commercial Property Research Institute, inc.

Scope for increase if rents
recover to 2019 level
（Yen）

1,087

800

243 yen(In one year)

844

600

70%

40%

Scope for Rent Increases at Four Hotel
Properties with Variable Rent
(Per Investment Unit/Year)

1,000

80%

50%

2023

Asia Pacific

100%

60%

92.0%

90.0%

112%
111%
109%

90%

A moderate recovery is
expected in the office market

94.0%

118%

North America

110%
98.0%

stabilize RevPAR while controlling occupancy rates in order
to execute efficient hotel operation.
• By raising ADR and achieving operational efficiency, we willaddress cost increases centering on energy and stabilize
GOP.
• Given the increase in the number of overseas guests dueto the easing of border restrictions, we aim for a quick
recovery in hotel rents to pre-pandemic (2019) levels by
capturing inbound tourism demand via Marriot.com, etc.

61%
56%
40%
2021

(Source) IATA

400
Along with domestic travel,
recovery of inbound demand
is anticipated
2022

2023

2024

2025

200
0

Aug. 2019 FP

Aug. 2023 FP(Actual) +(Forecast) +Feb. 2020 FP

Feb. 2024 FP(Actual)(Forecast)25

Financial Status

Financial Status(Management Results until March 1, 2023 and Loan Repayment Schedule Diversification)
Management Results for the Fiscal Period Under Review(Former MORI TRUST Sogo Reit, Inc.)(Refinance)
Amid the rise in the base interest rate, we are shortening borrowing
terms and limiting increases in the cost of raising funds.

(New borrowing (Mar. 1 2023))

Repayment Summary
Total amount
11,500 mn yen
Average loan term
4.3 year
Average interest rate
0.40%

New Borrowing Summary
MUFG Bank, Ltd.
7,000 mn yen
2,500 mn yen
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
2,500 mn yen
Development Bank of Japan Inc.
1,500 mn yen
Resona Bank, Limited.
1,000 mn yen
Aozora Bank, Ltd.
1,000 mn yen
Mizuho Trust & Banking Co., Ltd.
1,000 mn yen
SBI Shinsei Bank, Limited
1,000 mn yen
The Ashikaga Bank, Ltd.
1,000 mn yen
The ChibaBank, Ltd.（New lender）
500 mn yen
The Yamanashi Chuo Bank, Ltd.（New lender）
500 mn yen
19,500 mn yen
Total amount
Average loan term
4.7 year
Average interest rate
0.87%

MTR made a new loan for the acquisition of a property (Kamiyacho
Trust Tower) by Leveraging Merger EffectBorrowing Summary
Total amount
9,000 mn yen
Average loan term
3.9 year
Average interest rate
0.73%

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

(Issuance of Investment Corporation Bonds)
In an environment where issuing bonds is difficult due to changing
monetary policy, we issued 3 billion yen in 6-year bonds, and along withthe 18th series of investment corporation bonds, we handled repayment of
4 billion yen of the 12th series of investment corporation bonds.

(mn yen)30,000Bond name

Term

Issuance amountInterest rateIssuance date

19th unsecuredinvestment
corporation bonds

6-year3,000 million yen

0.790%

Feb. 17, 2023

Loan Repayment Schedule Diversification (as of Mar. 1, 2023)
Short-term loans

Long-term loans

Investment corporation bonds

25,0003,000

20,0001,000
15,0001,000

13,00026,00016,50010,0005,000

017,50020,50016,000 15,500
11,5008,475

13,000(Schedule for repayment within one year)
Fiscal Period Ending August 2023

Fiscal Period Ending February 2024

Repayment Summary
Total amount
21,475 mn yen
Average loan term
4.0 year
Average interest rate
0.43%

Repayment Summary
Total amount
19,500 mn yen
Average loan term
4.7 year
Average interest rate
0.40%

2,000

3,000

11,00011,500 10,500

3,000

7,500
2,500

3,000

1,000
3,500

1,500

1,000

1,000

1,000

endingendingendingendingFebruary

AugustFebruary

February

February

2031

2031

2032

2036

2037

PeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodPeriodendingendingendingendingendingendingendingendingendingendingendingendingendingendingendingendingAugustFebruary

AugustFebruary

AugustFebruary

AugustFebruary

AugustFebruary

AugustFebruary

AugustFebruary

August

2023

2024

2024

2025

2025

2026

2026

2027

2027

2028

2028

2029

2029

2030

2030

PeriodPeriodPeriod27

Financial Status (Status of Interest-Bearing Liabilities)
Breakdown of Interest-Bearing Liabilities

Interest-Bearing Liabilities
MTR
Sep. 30,2022
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)

LTV (Loan To Value ratio)Long-term interest-bearing liabilities ratio(including loans expected to be repaid or redeemedwithin one year)

Feb. 28,2023(as of the end of March 1, 2023)

MTH
ChangeFunding forthe acquisition(Kamiyacho)Feb. 28,2023

152,500-3,50053,975

19,500225,975

6,000

6,000

ー

5,475

ー

11,475135,000

132,500-2,50048,50019,500200,500

15,00047.9%
96.2%

14,00047.3%
96.1%-1,000-0.6pt-0.1ptー-0.1pt89.9%

Average interest for borrowings
during fiscal period

0.48%

0.49%

0.01pt0.47%

14,000
48.0%

89.9%

96.1%

Rating (JCR)

ー

49.1%

96.2%

Long-term loans and investment
corporation bonds
Average duration ofinterest-bearing liabilities

Mar. 1,2023

156,000

Fixed interest-bearing liabilities ratio

Short-term loans

New MTR

94.9%
94.9%
0.87%

0.55%

0.21%

0.20%

-0.02pt

0.39%

ー

0.30%

0.49%

0.50%

0.01pt

0.48%

0.87%

0.56%

3.5 year

3.5 yearー

1.7 yearAA (stable)

AA (stable)ーー

4.8 year

3.2 yearAA (stable)

Classification
Loans

Balance ofborrowings(%)

Mizuho Bank, Ltd.

48,50021.5%

Sumitomo Mitsui Banking Corporation

43,00019.0%

Sumitomo Mitsui Trust Bank, Limited

28,50012.6%

MUFG Bank, Ltd.

23,975

10.6%

Development Bank of Japan Inc.

17,500

7.7%

Resona Bank, Limited.

8,500

3.8%

Aozora Bank, Ltd.

6,500

2.9%

The Bank of Fukuoka, Ltd.

5,500

2.4%

The NorinchukinBank

4,500

2.0%

Mizuho Trust & Banking Co., Ltd.

4,500

2.0%

Shinkin Central Bank

4,000

1.8%

The Nishi-Nippon City Bank, Ltd.

3,500

1.5%

SBI Shinsei Bank, Limited

2,000

0.9%

The Ashikaga Bank, Ltd.

2,000

0.9%

The 77 Bank, Ltd.

2,000

0.9%

Nippon Life Insurance Company

2,000

0.9%

Mitsui Sumitomo Insurance Company,
Limited

2,000

0.9%

LenderSUMITOMO LIFEINSURANCECOMPANY

1,000

0.4%

The Hachijuni Bank, Ltd.

1,000

0.4%

The Dai-ichi Life Insurance Company,Limited

500

0.2%

The Chiba Bank, Ltd.

500

0.2%

The Yamanashi Chuo Bank, Ltd.

500

0.2%

211,975

93.8%

Subtotal
Investment corporation bonds
Total

14,0006.2%

225,975

100.0%

Changes in LTV
Standard LTV：50％

28

Accounting of Goodwill•(Positive) goodwill of around 0.6 billion yen occurred when estimated based on the unit price (closing
price) of the surviving corporation MTR on February 28, 2023.

•

Our policy is to record goodwill on the balance sheets as intangible assets and amortize it equally over
20 years (40 fiscal periods) as operating expenses on the statements of income and retained earnings.

•

Given that the goodwill amortization amount is relatively small, for the purpose of stabilizing the
distribution level in the future, we do not currently plan to record an allowance for temporary difference
adjustments (ATA) for resolving tax accounting inconsistencies in order to keep voluntary retained
earnings as internal reserves.
＋
MTR (surviving corp.) + MTH (dissolving corp.)
B/S at the time of
the Merger (book value)
Assumedliabilities(book value)
Assetsaccepted(book value)

Net assets(book value)

Market valuation B/S
as of the end of February 2023
Assumedliabilities(Fair value)

Trial calculation based on MTR
investment unit price (closing price)
on February 28, 2023

New MTR
B/S after the Merger

Merger consideration morethan market-value basedon net asset value creates
positive goodwill.

Assetsaccepted(Fair value)
Net assets(Fair value)

Positivegoodwill
Mergerconsideration(MTR
Investment
unit)

Liabilities
Assets(including
positivegoodwill)
Net assets

Treatment policy of goodwill
Treatment on
B/S

Posted as intangible assets

Treatment on
P/L

Amortized in equal amounts over a period of within
20 years (40 fiscal periods) as operating expenses

29

Initiatives Related to ESG

30

Initiatives Related to ESG (1)Latest Initiatives Related to ESG
 Acquisition of Environmental Certification and Evaluation（Feb. 2023）•

Certification for CASBEE for Real Estate（Ito-Yokado Shonandai）

Rank S••

DBJ Green Building certification（Hiroo MTR Building and Tenjin Prime）

Hiroo MTR Building

Tenjin Prime

Properties with excellent
environmental& social awarenessAcquisition status of environmental certification and evaluation
Environmental certification and evaluation had been obtained for 12 properties in
MTR’s portfolio (excluding land with leasehold interest) as of the end of February 2023.
DBJ Green Building certification

★★★

★★

Tokyo Shiodome Building
Kioicho Building (Office)Kioicho Building(Residential)

ON Building
Osaki MT Building
Midosuji MTR Building
SHIBUYA FLAG (Office) Acquisition of 2022 GRESB Real Estate
Assessment★
Shin-Yokohama TECH
Building
SHIBUYA FLAG (Retail)Hiroo MTR Building
Tenjin Prime•

GRESB Rating「4 Stars」•

GRESB Public Disclosure「A Level」

Certification for CASBEE for Real Estate
Property

Certification rank

Ito-Yokado Shonandai

Rank S (Highest rank)

Tokyo Metropolitan Government Building Energy-Saving Performance Evaluation System
Property
Kamiyacho Trust Tower
KYOBASHI TRUST TOWER(Courtyard Tokyo)

Heat insulation
capacity of thebuilding

Energy-saving capability of theequipment systems

AAA (Highest rank)

AAA (Highest rank)

31

Initiatives Related to ESG (2)Policies and Management Structure of ESG

Social Initiatives

 Sustainability Policy
As the movement toward making greenhouse gas emissions
zero overall by 2050 based on the Paris Agreement gains
momentum, the asset management company revised its
sustainability policy with a view to making net zero a longterm target.

 Cooperation with Local Events

We endeavor to contribute to the sustainable development oflocal communities by participating in various community
development-related councils and participating in andcooperating with local events.

Environmental Initiatives
 Environmental Performance Targets
MTAM has set reduction targets for total CO2 emissions, energy
consumption and water consumption across the portfolio for
FY2021 to FY2025, as shown below. Moreover, based on themerger of MORI TRUST Sogo Reit, Inc. and MORI TRUST Hotel
Reit, Inc. on March 1, 2023, the environmental performancetargets were revised.

Midosuji Illuminations

Hold a charity event " Christmas Train"(Midosuji MTR Building)(Hilton Odawara Resort & Spa)

 Initiatives for Local Communities
We make part of the sites of real estate owned by MTR available
for the installation of cycle ports for shared bicycles and we
install an eco-friendly electric vehicle car-sharing service. The
eemo service supports not only transportation but thecommunity by running mainly on locally generated electricity innormal times and serving as emergency power sources during
disasters.

* Energy：Electricity, gas, fuel, DHC, etc. / Water supply and recycled water* Baseline：FY2018(Total of portfolio of former MORI TRUST Sogo Reit, Inc.
and former MORI TRUST Hotel Reit, Inc.)* Rate is consumption rate or emissions rate per unit floor area. Adjusted based on the period ofholding and utilization rate of each property.

 Environmental Performance Data
Emissions
CO2Emissions intensity
Consumption
EnergyConsumption intensity
Consumption
Water
Consumption intensity

unit
t-CO2
t-CO2/㎡
MWh
MWh/㎡
㎥
㎥/㎡

Baseline
49,571
0.094
135,101
0.256
839,9191.594

2019
46,9040.089
128,174
0.243
792,323
1.502

2020
37,4980.071
105,234
0.200
468,167
0.889

2021
34,0010.070
101,0110.191
714,139
1.471*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.)*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.

Provision of community cycle system(Kioicho Building)eemo Station(Hilton Odawara Resort & Spa)

32

Initiatives Related to ESG (3)Governance Initiatives
 MTR's Organization
MTR entrusts asset management to MTAM. With the mergerof MORI TRUST Sogo Reit, Inc. and MORI TRUST Hotel Reit,
Inc. on March 1, 2023, the organizational structure of theasset management company was changed. The structure
following the change is as shown below.

(Reference) Employee Initiatives by Mori Trust Group Employee Initiatives (MORI TRUST CO., LTD.) (Note 1)
Promotion of work-life balance and women’s participation
 MORI TRUST considers the work-life balance of its employees
to help maximize each employee’s abilities and strives tocreate a comfortable environment for them to work.
 MORI TRUST was awarded “Platinum Kurumin Certification”
from the Ministry of Health, Labor and Welfare as of August 1,
2022, in recognition of its high level of initiatives as a
“Childcare Support Company.” MORI TRUST is recognized as a company promoting women’s
activities and has acquired “Eruboshi” certification.

(1) Female employment rate(2) Female employee rate(3) Female management position rate(4) Rate of taking children leave

Regular issue of Sustainability Report
The Sustainability Report is positioned as an important tool
for proactive disclosure of ESG information and scheduled to
be issued annually every July. The latest edition was issuedin July 2022.
Click here for details(Link to the report of Former MORI TRUST Sogo Reit)

Click here for details(Link to the report of Former MORI TRUST Hotel Reit)(5) Rate of paid leave taken

Male
Female

27.1%
27.1%
6.6%
55.6%
100.0%
82.8%((1)(4)(5): FY2022, (2)(3): as of March 31, 2023) (Note 2)

Acquired special certification as a company that supports employees with childcare (Platinum Kurumin
certification) and certification as a company that promotes women's participation and advancement in theworkplace (Eruboshi certification) (Minister of Health, Labour and Welfare certification) and certification
as a company that implement health and productivity management (Health & Productivity Management
Outstanding Organizations)(Note 1) The employees of the Asset Management Company of MORI TRUST REIT are comprised of personnel
seconded from MORI TRUST CO., LTD.
(Note 2) Figures shown in (1), (2) and (3) are calculated for employees employed by MORI TRUST CO., LTD.
and figures shown in (4) and (5) are calculated for employees assigned to MORI TRUST CO., LTD.)33

Characteristics of New MORI TRUST REIT, Inc.

34

Intensive Investment in High-quality Assets
Building a portfolio with both stability and growth potential based on its core assets, offices and hotels
Intensive investment in high-quality, high-grade assets with asset potential leveraging the support ofMori Trust Group assets
Asset potential: located in major cities across Japan,
concentrated in central Tokyo.

Properties located in central Tokyo are 80.0% of theentire portfolio
96.0% of the portfolio is properties in major cities
across Japan

Property owned by MTR

Grade: Intensive investment in high-quality, high-grade properties

OfficeHotel

Total floor space: Large
Contracted rent: High

Guestroom area: Large
ADR: High

Central Tokyo
An investment of 5 billion
yen or more

Guest room floor area: from 40 m2
Avg. guest room unit price: from 40,000
yen

Investment in first-class officebuildings in Chiyoda, Chuo, Minato,
Shinagawa, Shibuya and Shinjuku
wards

Property owned by MTH

Major cities across JapanAn investment of 3 billion
yen or more

Tokyo 23 Wards

Investment in high-quality officebuildings in the Tokyo metropolitan
area (Tokyo, Kanagawa, Chiba andSaitama) and other ordinancedesignated cities

LuxuryUpper upscale

Guest room floor area: from 30 to 40 m2
Avg. guest room unit price: 30,000 to
40,000 yen

UpscaleGuest room floor area: from 20 to 30 m2
Avg. guest room unit price: 20,000 to
30,000 yen

Upper midscale

Guest room floor area: from 15 to 20 m2
Avg. guest room unit price: 10,000 to
20,000 yen

Midscale

OthersGuest room floor area: from 10 to 15 m2
Avg. guest room unit price: up to
10,000 yen

EconomyGuest room floor area: up to 10 m2
Avg. guest room unit price: up to
10,000 yen

Central Tokyo

Total floor space: Small
Contracted rent: Low

Guestroom area: Small
ADR: Low

35

Portfolio Consisting Primarily of High-quality Properties Developed by the Sponsor
Building a portfolio with high asset potential consisting primarily of high-quality properties developedby the sponsors, which can be destinations for people to gathering
Portfolio including high-grade assets with asset potential and an increase in stability
Percent of the portfolio that is in central Tokyo(Percent of the portfolio that is in major cities across Japan)

Percentage of properties using an international brand(Hotel)

80.0%

63.8%

(Major cities acrossJapan: 96.0%)

Intensive investment in areas with high asset potential

Intensive investment in high-grade properties consisting
mainly of properties using an international brand

Properties for which the development and management
capabilities of the Mori Trust Group are used

OfficeHotel

High-grade office buildings
mainly consisting of large,
competitive properties

High-quality hotels mostly using
an international brandKamiyacho Trust Tower

Courtyard by Marriott
Tokyo Station

Courtyard by Marriott
Shin-Osaka Station
Hotel Sunroute
Plaza Shinjuku

Sendai MT Building Osaki MT Building
Tokyo Shiodome Building

Shangri-La Tokyo
Hilton Odawara Resort & Spa(Note) The “ratio of the central Tokyo area (ratio of major cities nationwide)” and “ratio of the international brand (hotels)” are calculated based on anticipated acquisition price as of March 1, 2023.
The usage of a property with more than one use is determined based on the main use of the building

36

Broad Collaboration with the Mori Trust Group
Post-merger ratio of same-boat investment is 29.2%, indicating a strong link between
the sponsor group and investor profit.
Sponsor support by Mori Trust GroupAcquisitions basedon information
provided by
the sponsoror

Acquisitions basedon Joint investment
with the sponsor

Acquisitions
involving
the sponsor

Same-boat investment of J-REIT

Acquisitions fromthe sponsor
61.0%

29.2%

83.9%

22.9%

Investment in high-quality properties developedby MORI TRUST, a general developer
Recent transactions (including planned)
Acquisitions
fromthe sponsor• Sendai MT Building (2023・2024, MTR)
• Kamiyacho Trust Tower (2021・2023, MTR)
• Hotel Sunroute Plaza Shinjuku (2016, MTH)
• Shangri-La Tokyo (2016, MTH)
• Courtyard by Marriott Tokyo Station (2016, MTH)
• Courtyard by Marriott Shin-Osaka Station (2016, MTH)

Joint
investment• Hilton Odawara Resort & Spa (2019, MTH)
withthe sponsor• Shinbashi Ekimae MTR building (2023・2024, MTR)
Dispositions • Courtyard by Marriott Tokyo Station
to(2021・2022 Partially sold, MTH)
the sponsor • Tokyo Shiodome building (2021 Partially sold, MTR)
• Mita MT building (2014, MTR)

Total 60 stocks

0%

10%

20%

30%

40%

50%

60%

(Note) Acquisitions from the sponsor," "Acquisitions based on information provided by the sponsor," and "Acquisitions based on Joint investment with the sponsor" are based on anticipated acquisition price as of March 1, 2023.

37

Mori Trust Group
Since its founding in 1951, the Mori Trust Group has engaged in large urban development projects primarily in the central Tokyo area, withproperty holding, leasing, operation, and management. Through the success of this core business, in which the Group has envisioned thefuture of cities and continued to provide functions truly needed by people, the Group ensures high profitability and stable income and isbuilding 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 businessRespond 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)

38

Major Hotels Developed, Held and/or Operated by Mori Trust GroupOperation &Management
Capabilities

Development
Capabilities

Strategic Hotel
Development

Alliance with a variety ofinternational brand hotels

Major Metropolitan Areas(Properties indicated in red are those
owned by MORI TRUST REIT)

Resort Areas❾

JW Marriott Hotel Nara

158 rooms ＭＣ⓯

Ryouri Ryokan Karaku❿

Suiran, a Luxury
Collection Hotel, Kyoto

39 rooms

ＦＣ⓰⓫

IRAPH SUI, a Luxury
Collection Hotel,
Miyako Okinawa

58 rooms ＦＣ⓬

Sheraton Okinawa
Sunmarina Resort

246 rooms ＦＣ⓭

Hilton Okinawa
Sesoko Resort

298 rooms ＭＣ

14

Hilton Odawara
Resort & Spa

ＭＣ

163 rooms(Properties indicated in red are those
owned by MORI TRUST REIT)❶

The Tokyo EDITION,
Toranomon

206 rooms

ＭＣ❷

CONRAD TOKYO

291 rooms

ＭＣ❸

The Westin Sendai

292 rooms

ＦＣ❹

Tokyo Marriott Hotel

249 rooms

ＦＣ❺

Courtyard by Marriott
Tokyo Station

150 rooms

ＦＣ❻

Courtyard by Marriott
Shin-Osaka Station

332 rooms

ＦＣ

DirectDirectly operated by Mori Trust GroupＦＣFranchised

ＭＣ

Under Management Contract

ＬＥ

Leased❸⓰⓲❼Shangri-La Tokyo

200 rooms

ＬＥ❽

Hotel Sunroute Plaza
Shinjuku

624 rooms

ＬＥ

22

❿
⓯

❶❷❹
❺❼❽

⓳

21

❻❾

27

23

14

⓴

⓱ 26

24

21

19 rooms

Direct

MAMPEI HOTEL

109 rooms

Direct⓱Gora-Kansuiro

14 rooms

Direct⓲Karuizawa MarriottHotel

142 rooms

ＦＣ⓳

Fuji Marriott Hotel Lake
Yamanaka

105 rooms

ＦＣ⓴

Izu Marriott Hotel
Shuzenji

128 rooms

ＦＣ

21

Lake Biwa MarriottHotel

274 rooms

ＦＣ

22

Nanki-Shirahama
Marriott Hotel

182 rooms

ＦＣ

23

Courtyard by Marriott
Hakuba24

Hotel Laforet Shuzenji

212 rooms

Direct25

Laforet Club Ito Onsen
Yunoniwa

84 rooms

Direct26

Laforet Club Hakone
Gora Yunosumika

44 rooms

Direct27

Resort Hotel Laforet
Nasu

118 rooms

Direct72 rooms ＦＣ

25

⓫

⓬⓭

(Source) Prepared by the Asset Management Company based on the information of Mori Trust Group available as of February 28, 2023
(Note) Except for the assets owned as of February 28, 2023, there is no fact that MORI TRUST REIT has decided to acquire the properties listed above, or there is no guarantee that it can acquire them in the future.

39

Major Hotel Development Projects Underway by Mori Trust Group
Development
Capabilities

Operation &Management
Capabilities

Strategic
Investment

Major Metropolitan Areas

Multiple new hotel development projects

The Tokyo EDITION,
Ginza

Major Metropolitan Areas
The Tokyo EDITION, Ginza
Hotel development planin Tokyo World Gate AKASAKA

Resort Areas
Sapporo Odori Park
Karuizawa Shiozawa
Karuizawa Nagakura

Hotel development plan inTokyo World Gate
Akasaka

Karuizawa Shinonome
Kanazawa Hirooka
Hida Takayama

Resort Areas -Nara-

Hakuba Sakka
Hakone Nakagora
Hakone Gora

SHISUI, a Luxury
Collection Hotel, NaraAtami Kinomiya
Kyoto Gion
SHISUI, a Luxury Collection Hotel,
Nara

Luxury Destination
NetworkNagasaki Minamiyamate
Okinawa Fuchaku(Source) Prepared by the Asset Management Company based on the information of Mori Trust Group available as of February 28, 2023
(Note)
Except for the assets owned as of February 28, 2023, there is no fact that MORI TRUST REIT has decided to acquire the properties listed above, or there is no guaranteethat it can acquire them in the future.

40

Appendix

41

Entry Restrictions in Japan and China
and Overview of Nationwide Travel Discount Program•

Due to the spread of COVID-19 within China following the relaxation of the Chinese government’s “zero-COVID” policy, Japan
tightened entry restrictions for travelers from China in December 2022.
With the reduction in the positive rate in screenings for travelers entering the country, the restrictions were gradually eased
starting in March 2023.

•

With the reclassification of COVID-19 as a “Class 5” disease on May 8, 2023, it is anticipated that the requirement to present
proof of vaccination or a negative test result when entering Japan will be lifted, and the number of tourists visiting the country
is expected to recover in earnest.

•

Nationwide travel support has been maintained with a lower maximum subsidy amount since January 10, 2023, which
continues to stimulate domestic travel demand.
Entry Restrictions in Japan and China (After Dec. 2022)
Date

Entry Restrictions in Japan and China
JPN

Mandatory screening test for travelers entering
Japan from China

Jan. 8, 2023

CHN

Lifting of mandatory screening tests and quarantine
when entering China

Jan. 10CHN

Temporary suspension of issuing visas to Japanesecitizens

Jan. 29

CHN

Resumption of issuing visas to Japanese citizens

Mar. 1JPN

Switch to random screening tests for visitors from
China (conducted for at most 20% of all Chinese
visitors)

JPN

Lifting of requirement for visitors from China toshow proof of a negative test result

Dec. 30, 2022

Apr. 5End of border control measures with reclassificationof COVID-19 as “Class 5” disease
May 8

JPN

→Lifting of requirement to present proof of
vaccination or negative test result when enteringJapan

Overview of Nationwide Travel Discount Program(After Jan. 2023)
PeriodJan. 10, 2023, until end of budget allocated toprefectures(all prefectures still receiving it in April onward)

Details oftheprogram

20% discount on travel expenses (with upper limit)+ Coupon (2,000 yen on weekdays / 1,000 yen on
holidays)Upperlimit ofdiscount
amounti. Tours with transportation: 5,000 yen (per person per night)

Maximum
amount ofsubsidy

Condition

ii. Other than the above (including daytrips): 3,000 yen (per person per night)
Target ProductWeekdays

Holidaysi. Tours with transportation

7,000 yen

6,000 yenii. Other than the above(including daytrips)

5,000 yen

4,000 yen

Triple vaccination or negative PCR test result

42Performance of Hilton Odawara Resort & Spa•

With the nationwide travel subsidy program since October 2022, the hotel room rate and occupancy rate
have both remained strong despite the pandemic, and total sales since December have been of a levelexceeding 2019 results.

•

With consumer confidence improving, the number of non-staying guests eating lunch at restaurants istrending upward, and going forward, further recovery in revenues may be expected in food andbeverage.

Change in Major Indicators (Year-on-Year Comparison)

Rent for 14th FP of MORI TRUST Hotel Reit, Inc. (Note 1)
Jul. 2021 to Jun. 2022
2022

(Million yen)

500

2023

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

30

30

30

30

30

30

Rent (million yen)

Rent for 43rd FP of MORI TRUST REIT, Inc.

400

Jan. 2022 to Dec. 2022
2023

300

Mar.

Apr.

May

Jun.

31

31

31

31

Rent (million yen)

Jul.

Aug.

31

31

【Reference】 Base period for calculation of rent
 Odd fiscal periods (fiscal periods ended/ending in Aug.):
12 months from January to December in the previous year Even fiscal periods (fiscal periods ended/ending in Feb.):
12 months from July in the previous year to June in the relevant year

200

100

2021

Year
Month

7

8

2022

9 10 11 12 1

2

3

4

5

6

7

2023
8

9 10 11 12 1

2

MORI TRUST Hotel Reit, Inc.
Fiscal Period 11th FP

0

Jan.

Feb.

Mar.

Apr.

Total Sales (Note2)

May
2019

Jun.

Jul.
2020

Aug.
2021

Sep.
2022

Oct.

Nov.
2023

12th FP

13th FP

3

4

5

6

7

8

MORI TRUST REIT, Inc.

14th FP

43rd FP

14th FP profits (12-month average)

Dec.

43rd FP profits (12-month average)
Rent

Rent for 14th FP

Rent for 43rd FP(Note 1) “Rent” shows the value calculated based on the rent calculation method in the lease contract, rounded down to the nearest million yen.
(Note 2) ”Total sales” is the total amount of sales for the entire hotel (including the interest of the quasi-co-owner MORI TRUST), rounded down to the nearest million yen.

43Performance of Courtyard by Marriott Tokyo Station•

With the lifting of the restriction on the number of daily visitors entering Japan in October 2022,
attracting overseas business guests, primarily via Marriott.com, has been gathering momentum, and the
proportion of guests accounted for by overseas visitors is rising.
(Reference)
Share of foreign guests in the total number of guests

•

Sep.
2022

Oct.

Nov.

Dec.

Jan.
2023

Feb.

Mar.

52.4%

62.8%

65.0%

62.7%

67.8%

67.2%

69.4%

In capturing overseas business demand on weekdays and increased domestic leisure demand(supported by the Tokyo Metropolitan Government’s “Tadaima Tokyo Plus” travel subsidy program) on
weekends and holidays, RevPAR since November 2022 has recovered to a level approaching 2019 results.
14th FP avg.
MORI TRUST Hotel Reit, Inc.

Change in Major Indicators (Year-on-Year Comparison)(Yen)(Million yen)

30,000

Average daily rate
(ADR)

21,261 yen

75

25,000

RevPAR

15,827 yen

60

20,00045

15,000Rent

14th FP total
MORI TRUST Hotel Reit, Inc.

14th FP (actual)(Note 1)

169 mn yen

10,000(Rent)

148 mn yen

15

5,000

（Difference fromminimum guaranteed rent）

00

month for rent
Rent recordingmonth

74.4 ％

90

30

Base

Occupancy rate

Jun.
2022

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2023

Feb.

Sep.
2022

Oct.

Nov.

Dec.

Jan.
2023

Feb.

Mar.

Apr.

May

14th FP (forecast)
Change(Note 1)14th FP of MORI TRUST Hotel Reit, Inc.
Rent for the same month of 2019 (left axis)
Rent (left axis)
RevPAR for the same month of the previous year (right axis)

Rent for the same month of the previous year (left axis)
RevPAR for the same month of 2019 (right axis)
RevPAR (right axis)(Note 2)

21 mn yen

169 mn yen- mn yen

Since there is the difference (shortfall) of 274 million yen between
the total amount of rent for the period from October 2021 toSeptember 2022 and the minimum annual guaranteed rent, 251
million yen (out of this amount, the amount equivalent to 94.5%
quasi-co-ownership interest in the trust beneficiary interest owned by
MORI TRUST Hotel Reit is 237 million yen.) was added to the rent forthe 13th fiscal period and also 22 million yen (out of this amount, theamount equivalent to 93.5% quasi-co-ownership interest in the trust
beneficiary interest owned by MORI TRUST Hotel Reit is 21 millionyen.) will be added to the rent for the 14th fiscal period separately.
In "Rent," difference from the minimum guaranteed rent is notincluded. "Rent" refers to the total amount of rent for the entire trust
beneficiary interest regardless of changes in the percentage of quasico-ownership interest in the trust beneficiary interest owned by MORI
TRUST Hotel Reit.

44

Performance of Courtyard by Marriott Shin-Osaka Station•

Along with increased overseas guest demand, it is attracting domestic leisure demand, especially on
weekends and holidays, due to the support of Osaka Prefectural Government’s “Osaka Kite Na!” campaign,
which provides coupons on top of the nationwide travel subsidy.

•

Recently, high room rates and high occupancy rates have been stable on weekdays as well due to therecovery in business demand, and RevPAR has reached a level equivalent to 2019.

•

With Osaka’s overall hotel market recovering, revenues are expected to recover further as inboundtourism from mainland China resumes in earnest.

Change in Major Indicators (Year-on-Year Comparison)
14th FP avg.
MORI TRUST Hotel Reit, Inc.
(Yen)

(Million yen)90

30,00075

25,00060

20,00045

15,00030

10,000

15

Base

0

month for rent
Rent recording
month

5,000

Jun.
2022

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2023

Feb.

Sep.
2022

Oct.

Nov.

Dec.

Jan.
2023

Feb.

Mar.

Apr.

May

0

14th FP of MORI TRUST Hotel Reit, Inc.
Rent for the same month of 2019 (left axis)
Rent (left axis)
RevPAR for the same month of the previous year (right axis)

Rent for the same month of the previous year (left axis)
RevPAR for the same month of 2019 (right axis)
RevPAR (right axis)

Occupancy rate

58.7 ％

Average daily rate
(ADR)

16,672 yen

RevPAR

9,787 Yen

Rent

14th FP total
MORI TRUST Hotel Reit, Inc.

14th FP (actual)(Note 1)157 mn yen(Rent)

123 mn yen（Difference fromminimum guaranteed rent）

14th FP (forecast)
Change34 mn yen

157 mn yen- mn yen(Note 1) Since there is the difference (shortfall) of 412 million yen
between the total amount of rent for the period from October
2021 to September 2022 and the minimum annual guaranteed
rent, 378 million yen was added to rent for the 13th FP and 34
million yen will be added to rent for the 14th FP separately.
(Note 2) In "Rent," difference from the minimum guaranteed rent is notincluded.

45

[Reference] Timing of Compensating forthe Difference from the Minimum Guaranteed Rent
2021
7

8

2022
9 10 11 12

1

2

2023
3

4

5

6

7

8

9

10 11 12

1

2

2024
3

4

5

6

7

8

MORI TRUST Hotel Reit, Inc.

Fiscal period
Shangri-La

12th FP

Base month for rent

14th FP(i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i)43rd FP

Recorded difference(1/12-month equivalent)▼ ▼(i) (ii) (iii) (iv) (v) (vi) (i)(ii) (iii) (iv) (v) (vi) (i)

3

4

5

6

7

8

9

45th FP(ii) (iii) (iv) (v) (vi)

Recorded difference inguaranteed minimum rent
(11/12-month equivalent)

Recorded difference(1/12-month equivalent)▼ ▼(ii) (iii) (iv) (v) (vi) (i)Timing of receiving difference inguaranteed minimum rent

Criteria for applying minimum

244th FP(ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i)Recorded difference inguaranteed minimum rent
(11/12-month equivalent)

Rent *variable (monthly)

10 11 12 1

MORI TRUST REIT, Inc.

13th FP(Linked to hotel total revenue)

9(ii) (iii) (iv) (v) (vi) (i)(ii) (iii) (iv) (v) (vi)

Timing of receiving difference inguaranteed minimum rent

Total rent for 12 months: 882,700,000 yen

guaranteed rent

CY Tokyo (Note 1)

Base month for rent(i) (ii) (iii) (iv) (v) (vi) (i)(Linked to hotel profit)(93.5% quasi-co-ownership interest)(Note 2)

Base month for rent(i) (ii) (iii) (iv) (v) (vi) (i)Criteria for applying minimum
guaranteed rent
Base period for

Rent

▼ ▼

(ii) (iii) (iv) (v) (vi) (i)(i) (ii) (iii) (iv) (v) (vi) (i)Recorded difference(1/12-month equivalent)▼ ▼(i) (ii) (iii) (iv) (v) (vi) (i)Recorded difference inguaranteed minimum rent
(11/12-month equivalent)

Recorded difference(1/12-month equivalent)▼ ▼(ii) (iii) (iv) (v) (vi) (i)(ii) (iii) (iv) (v) (vi)

Timing of receiving difference inguaranteed minimum rent(ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi)

Recorded difference inguaranteed minimum rent
(11/12-month equivalent)(ii) (iii) (iv) (v) (vi) (i)Timing of receiving difference inguaranteed minimum rent

Recorded difference(1/12-month equivalent)▼ ▼(ii) (iii) (iv) (v) (vi) (i)Recorded difference inguaranteed minimum rent
(11/12-month equivalent)(ii) (iii) (iv) (v) (vi) (i)Recorded difference(1/12-month equivalent)▼ ▼(ii) (iii) (iv) (v) (vi)

Timing of receiving difference inguaranteed minimum rent

Timing of receiving difference inguaranteed minimum rent

Total rent for 12 months: 460,000,000 yen(i)calculation of rent
(Linked to hotel profit)(50% quasi-co-ownership interest)*Rent varies each fiscal period
Rent(ii) (iii) (iv) (v) (vi)

Recorded difference inguaranteed minimum rent
(11/12-month equivalent)

Rent *variable(monthly)

Recorded difference(1/12-month equivalent)Timing of receiving difference inguaranteed minimum rent

Total rent for 12 months: 310,000,000 yen(Linked to hotel profit)(ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi)

Recorded difference inguaranteed minimum rent
(11/12-month equivalent)(ii) (iii) (iv) (v) (vi) (i)Timing of receiving difference inguaranteed minimum rent

guaranteed rent

Hilton Odawara

Recorded difference(1/12-month equivalent)(i) (ii) (iii) (iv) (v) (vi) (i)Criteria for applying minimum

CY Shin-Osaka(i) (ii) (iii) (iv) (v) (vi) (i)▼ ▼Rent *variable(monthly)

Sunroute(ii) (iii) (iv) (v) (vi)

Recorded difference inguaranteed minimum rent
(11/12-month equivalent)

(iii)
(ii)

(iv)
(i)

(i)

(i)

(i)

(i)

(i) (ii)(ii) (ii) (ii)(ii) (ii) (iii) (iii) (iii) (iii) (iii) (iii) (iv) (iv) (iv) (iv) (iv) (iv)(The monthly amount is fixed during a fiscal period.)

Fixed

Fixed

Fixed

Fixed

Fixed

Fixed

(Note 1) MORI TRUST Hotel Reit implemented the transfer of the 1% quasi-co-ownership of Courtyard Tokyo to MORI TRUST CO., LTD. (“MORI TRUST”) on August 31, 2022 (the “Transfer”).
(Note 2) The amount of compensation under the minimum rent guarantee scheme is calculated by subtracting the sum of the rent for the period of 12 months from October each year to September the following year(including the potion attributable to the quasi-co-owner MORI TRUST) from the minimum guaranteed rent of 310,000,000 yen for such period in accordance with the provisions of the lease agreement (the difference
calculated by such a calculation method is referred to as the “Difference from the minimum guaranteed rent”), and the Difference from the minimum guaranteed rent recorded on or after September 1, 2022 includes
the portion attributable to the quasi-co-owner MORI TRUST. Only 93.5%, which is the quasi co-ownership interest in the property, of the entire Difference from the minimum guaranteed rent recorded on or after
September 1, 2022 is recorded as operating income of MORI TRUST REIT.

46

Balance Sheets(42nd FP Ended February 2023 of MORI TRUST REIT, Inc.)As of September 30,
2022

AssetsCurrent assets
Cash and deposits

As of February 28,
2023

Liabilities
Current liabilities
Operating accounts payable

As of September 30,
2022

Thousands of yen
As of February 28,
2023

307,7096,000,000

220,285
6,000,000

16,534,395
3,089,760

14,729,422
2,413,662

77,534

97,513

Prepaid expenses-

28

86,34655,631

Accounts payable – otherOther

15,44964,915

Accrued expenses

19,803,486

17,361,173

Dividends payable

8,073

7,955

Cash and deposits in trust
Operating accounts receivable
Accounts receivable - otherTotal current assets
Non-current assets

Short-term loans payable
Current portion of investment corporation bonds
Current portion of long-term loans payable

Income taxes payable

Property, plant and equipment
Buildings

Accrued consumption taxes
Advances received

16,770,597

16,440,150

Structures

30,39330,561

Deposits received

Machinery and equipment

26,237

22,955

Total current liabilities

Tools, furniture and fixtures

4,000,000

3,000,000

18,000,000

15,000,000

58,604

349,524430,289444,375

867

718

233,884

61,744809,224

814,808

322

214

29,848,976

25,899,627

23,48323,567

Land

114,585,335

109,001,394

Investment corporation bonds

11,000,000

11,000,000

Buildings in trust

20,569,225

21,422,932

Long-term loans payable

117,000,000

117,500,000

Structures in trust

71,277

68,264

Tenant leasehold and security deposits

7,555,628

7,698,469

Machinery and equipment in trust

58,102

59,579Tenant leasehold and security deposits in trust

918,125

943,131

Deferred tax liabilities

Tools, furniture and fixtures in trust

Non-current liabilities

33,39532,860Land in trust

153,798,827

157,795,399

Total property, plant and equipment

305,966,876

304,897,665

Other

240

240

Total intangible assets

240

240

Guarantee deposits

10,00010,000Long-term prepaid expenses

66,82557,897

Other

2,815

2,815

Reserve for reduction entry

1,750,398

1,121,637

Total investments and other assets

79,64070,713

Total voluntary retained earnings

1,750,398

1,121,637

306,046,756

304,968,618

Total non-current liabilities
Total liabilities

514,820

631,732

136,988,574

137,773,333

166,837,550

163,672,960

153,990,040

153,990,040

Intangible assets

Investments and other assets

Total non-current assets
corporation

Total deferred assets
Total assetsbondUnitholders' equity
Unitholders' capital

Deferred assets
Investment
costs

Net assets

issuance

58,984

68,95058,984

68,950325,909,227

322,398,742

Surplus
Voluntary retained earnings

Unappropriated retained earnings

3,331,238

3,614,104

Total surplus

5,081,637

4,735,741

159,071,677

158,725,781

159,071,677

158,725,781

325,909,227

322,398,742

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

47

Statements of Income and Retained Earnings(42nd FP Ended February 2023 of MORI TRUST REIT, Inc.)▮ Statements of Income（Breakdown of Real Estate Leasing Business Income)For the period
from April 1, 2022
to September 30, 2022

Thousands of yen
For the period
from October 1, 2022
to February 28, 2023

6,603,932

5,620,653

Operating revenue
Lease business revenue
Other lease business revenue
Gain on sale of investment property
Total operating revenue

298,407

207,435-

1,430,579

6,902,340

7,258,668

Operating expenses
Expenses related to rent business

3,057,896

2,710,417

Asset management fee

307,505

275,258

Asset custody fee

12,987

10,829Administrative service fees

45,07650,842

Directors' compensations

3,600

3,000

merger-related expenses-

61,360

Other operating expenses

46,95088,983

Total operating expenses

3,474,016

3,200,691

3,428,323

4,057,976

Operating income
Non-operating income
Interest income

90

94

Reversal of dividends payable

845

647

Total non-operating income

936

741

345,823

291,515

27,15824,397

Amortization of investment corporation bond

8,874

7,679

other

3,886

3,376

385,741

326,968

Ordinary income

3,043,518

3,731,749

Profit before income taxes

3,043,518

3,731,749

Non-operating expenses
Interest expenses
Interest expenses
bonds

on

investment

Total non-operating expenses

corporation

Income taxes - current

881

732

Income taxes - deferred(288,601)

116,912

Total income taxes(287,720)

117,644

Profit3,331,238

3,614,104

Unappropriated retained earnings

3,331,238

3,614,104

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

For the period
from October 1, 2022
to February 28, 2023

A. Rental revenues
Lease business revenue
Rent

6,244,322

5,321,121

Common charges

236,001

196,524

Land leasing revenues

123,609

103,007

Other lease business revenue

298,407

207,435

6,902,340

5,828,088

Property management fees

717,358

600,789

Utilities

255,836

211,827

Property and other taxes

881,367

879,362

Casualty insurance

19,142

16,235

Repair expenses

41,62362,957

1,116,153

914,440

Total rental revenues
B. Property-related expenses
Property management expenses

Depreciation and amortization
Other expenses

26,41424,805

Total property-related expenses

3,057,896

2,710,417

C. Profit and losses from realestate rental business (A-B)

3,844,443

3,117,671

48

Statement of Cash Distributions / Statements of Cash Flows(42nd FP Ended February 2023 of MORI TRUST REIT, Inc.)▮ Statement of Cash Distributions▮ Statements of Cash Flows
Thousands of yen(yen)
For the period
from April 1, 2022
to September 30, 2022
Ⅰ．Unappropriated retained
earnings
Ⅱ．Reversal of voluntary
retained earnings
Reversal of reserve for
reduction entry
Ⅲ．Distribution amount(Distribution amount per unit)

3,331,238,876

For the period
from October 1, 2022
to February 28, 2023
3,614,104,524

628,761,124－

3,960,000,000

3,359,400,000(3,000)(2,545)

Ⅳ．Voluntary retained earnings
Provision of reserve for
reduction entry－

Ⅴ．Retained earnings carriedforward－254,704,524－

For the period
For the period
from April 1, 2022
from October 1, 2022
to September 30, 2022 to February 28, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of investment corporation bond issuance costs
Interest income
Interest expenses
Decrease (Increase) in operating accounts receivable
Increase (Decrease) in operating accounts payable
Increase (Decrease) in accrued consumption taxes
Increase (Decrease) in advances received
Decrease due to sale of investment property
Other, net
SubtotalInterest 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
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Net cash used in investing activities
Cash flows from financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable

3,043,518

3,731,749

1,116,153
8,874
▲ 90

914,4407,679▲ 94

372,981▲ 35,671

315,912▲ 19,978▲ 10,983
125,207▲ 10,954▲ 172,139▲ 104,045-

5,584
5,829,179▲ 89,768

73,655

4,426,175
90

10,675,035
94▲ 353,781▲ 348,757▲ 892
4,071,591▲ 881
10,325,489▲ 69,009▲ 16,911▲ 80,198▲ 90,166▲ 5,405,860▲ 122,170

160,283▲ 25,275

184,460▲ 8,391

7,804

37,476▲ 96,562▲ 5,331,397

17,000,000▲ 17,000,000

6,000,000▲ 8,500,000

Proceeds from issuance of investment corporation bonds

2,000,000

3,000,000

Redemption of investment corporation bonds
Payments for investment corporation bond issuance costs
Dividends paid

▲ 12,457▲ 4,000,000▲ 15,045▲ 4,216,512▲ 2,228,969▲ 3,960,117▲ 7,475,163

1,746,059▲ 2,481,070

17,878,096
19,624,156

19,624,156
17,143,085

Net cash used in financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period49

Balance Sheets and Statements of Income(14th FP Ended February 2023 of MORI TRUST Hotel Reit, Inc.)(Unit: Thousand yen)

Current assets

Balance Sheets

Statements of Income(as of February 28, 2023)(September 1, 2022 – February 28, 2023)

5,689,456

Current liabilities

20,628,909

Cash and deposits

4,136,939

Operating accounts payable

10,570Cash and deposits in trust

1,526,821

Short-term loans payable

5,475,000
14,500,000

Operating accounts receivable

1,011

Current portion of long-termloans payable

Prepaid expenses

24,683

Accounts payable

198,744

Non-current assets

104,163,899

Accrued expenses

Operating revenues

1,730,755

Rental revenues

1,727,444

Other rental revenues

3,311

Operating expenses

797,798

Rental expenses

668,487

34,455

Asset management fee

89,254

Distribution payable

2,150

Asset custody and administrative
service fees

11,894

17,168

Income taxes payable763

Directors’ compensations

3,600-4,465

Advances received

407,009

Other operating expenses

24,561216

Deposits received

214

Accumulated depreciation-40

Non-current liabilities

Tools, furniture and fixtures

78,609Long-term loans payable

34,000,000

Interest income

28-21,836

Tenant leasehold andsecurity deposits

4,514,823

Reversal of distributions payable

255

18

Gain on insurance claims

39

Total liabilities

59,143,750

Non-operating expenses

223,230

35,722Unitholders’ equity

50,709,604

Interest expenses

126,523-6,735Unitholders’ capital

50,000,000

Other non-operating expenses

96,707

5,034

Surplus

Property and equipment
Machinery and equipment
Accumulated depreciation
VehiclesAccumulated depreciation
Buildings in trust
Accumulated depreciation
Structures in trust
Accumulated depreciation
Machinery and equipmentin trust

104,110,360

20,593,673-4,384,293

Other

Unappropriated retained
earnings

38,514,841

Operating income
Non-operating income

932,957
323

709,604

Ordinary income

710,050

709,604

Income before income taxes

710,050

Accumulated depreciation-1,777

Tools, furniture and fixturesin trust

32,931

Total net assets

50,709,604

Income taxes – current

767

Accumulated depreciation-12,179

Total liabilities and net assets

109,853,355

Income taxes – deferred

9Land in trust

87,778,332

Net income

709,272

Intangible assets

2,495

Retained earnings brought forward

332

Software

2,495

Unappropriated retained earnings

709,604

Investments and other assets

51,042

Guarantee deposits

10,000Long-term prepaid expenses

41,034

Deferred tax assets
Total assets

7
109,853,355

50

Changes in Indicators（Unit:million yen）

Operating revenues
Gain on sale of real estate

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)

Period ended
February 2023
(42nd fiscal period)

8,789

9,202

8,528

6,902

7,258

－

1,433

1,452

－

1,430

Operating expenses

3,325

3,638

3,486

3,474

3,200

Operating income

5,464

5,563

5,042

3,428

4,057

Ordinary income

5,116

5,205

4,685

3,043

3,731

Profit

5,115

5,041

4,537

3,331

3,614

Total distribution

5,115

4,686

4,217

3,960

3,359

Total assets

330,301

328,288

325,071

325,909322,398

Interest-bearing liabilities

157,000

155,000

154,000

156,000

152,500

Total net assets

160,180

160,106

159,957

159,071

158,725

FormulaUnrealized gain/loss

37,00535,092

39,12444,03343,922

NAV

192,070

190,512

194,864

199,144

199,288 NAV = Total net assets + Unrealized gain/loss - Total distributio

Profits from real estate rental business

5,909

4,615

4,051

3,844

3,117

Depreciation and amortization

1,126

1,113

1,125

1,116

914

NOI

7,036

5,729

5,177

4,960

4,032

FFO

6,242

4,721

4,211

4,447

416

287

213

96

6,619

5,442

4,963

4,864

Capital improvements
Net cash flows

NOI = Profits from real estate rental business + Depreciation
and amortization
FFO = Profit + Depreciation and amortization – Gain/loss on
3,097
sale of real estate373

3,658 NCF = NOI – Capital improvements

ROA (annualized)

3.1%

3.2%

2.9%

1.9%

2.8% ROA = (Ordinary income / Total assets) / 6 × 12 * Annualized

ROE (annualized)

6.4%

6.3%

5.7%

4.2%

5.5% ROE = (Profit / Total net assets) / 6 × 12 * Annualized

LTV ratio

47.5%

47.2%

47.4%

47.9%

47.3% LTV = Interest-bearing liabilities / Total assets

Total number of outstanding
investment units
Distribution per unit

2,640,000 units 2,640,000 units 2,640,000 units 2,640,000 units 2,640,000 units
1,937 yen

1,775 yen

1,597 yen

1,500 yen

1,272 yen

Total net assets per unit

60,674 yen

60,646 yen

60,590 yen

60,254 yen

60,123 yen

NAV per unit

72,753 yen

72,163 yen

73,812 yen

75,433 yen

75,488 yen

FFO per unit

2,364 yen

1,788 yen

1,595 yen

1,684 yen

1,173 yen51

Changes in Asset Size, LTV and Distribution Per Unit
October 2013
Capital increase

Distribution
per unit

1,963

1,783
1,977

1,950
1,524

2,482

2,265

through public offering

1,960

1,723

1,801

1,760

1,892

1,833

1,825

1,916

1,854

1,825

1,785

1,778

1,775

1,500

1,937
1,597

1,272

53.7%

46.2%

L
T
V

48.6%

48.4%

47.2%
48.8%

49.6%

48.5%

48.0%
48.2%

48.0%

47.2%

47.1%

46.4%
47.2%

47.1%
47.1%

47.2%

47.9%

47.2%

47.5%

47.4%

47.3%

21.5%
17 properties
323.9
Billion

3,500

yen

3,000

Asset size

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

7 properties
107.2
Billionyen

500
0Period ended'04/3期

Period ended'12/3期

Period ended((第4期)
4th FP)(第20期)( 20th FP)(第25期)( 25th FP)(第30期)( 30th FP)

Sep. 2019'22/3期

Period ended

Mar. 2017'19/9期

Period ended

Sep. 2014'17/3期

Period ended

Mar. 2012'14/9期

Period ended

Mar. 2004((第35期)
35th FP)Mar. 2022((第40期)
40th FP)((第42期)
42nd FP)

Acquired
SHIBUYA FLAG
Partial disposalof Frespo Inage

Acquired Kohnan
Sagamihara-Nishihashimoto

Acquired
Tenjin Prime

Sold Ginza MTR Building(Remaining co-owned interest: 50%)
Acquired Midosuji MTR Building
Sold Osaka Marubeni Building

Acquired Kioicho Building
Partially sold Ginza MTR Building
Disposed Mita MT Building
Additionally acquired Osaki MT Building

Acquired
Hiroo MTR Building

Sold Ito-Yokado
Shin-Urayasu'23/2期

Feb. 2023

Acquired Kamiyacho Trust Tower
Partially sold Tokyo Shiodome Building
Additionally Acquired Kamiyacho Trust Tower
Partially sold Tokyo Shiodome Building
Acquired Sendai MT Building
Partially sold Shinbashi Ekimae MTR Building

52

Portfolio List after the Merger (As of March 1, 2023)
Use

Property Name

Location

Hotel gradeTokyo Shiodome Building(Hotel: Conrad Tokyo)

Minato Ward,(Luxury)Tokyo
Minato Ward,
OfficeKamiyacho Trust Tower
Tokyo
Shinagawa Ward,
OfficeON Building
Tokyo
Chiyoda Ward,
OfficeKioicho Building
Tokyo
Miyagino Ward,
OfficeSendai MT Building
SendaiShinagawa Ward,
OfficeOsaki MT Building
Tokyo
Chuo Ward,
OfficeMidosuji MTR Building
Osaka
Shibuya Ward,
OfficeHiroo MTR Building
Tokyo
Chuo Ward,
OfficeTenjin Prime
Fukuoka
Shin-Yokohama TECH
Kohoku Ward,
OfficeBuilding
Yokohama
Chiyoda Ward,
Shangri-La Tokyo
Hotel
LuxuryTokyo
Hilton Odawara
Odawara City,
Hotel
Upper upscale
Resort & Spa
Kanagawa
Chuo Ward,
Hotel Okura Kobe
Hotel
Upper upscale
Kobe
Courtyard by Marriott
Chuo Ward,
Hotel
UpscaleTokyo StationTokyo
Courtyard by Marriott
Yodogawa Ward,
Hotel
UpscaleShin-Osaka Station
Osaka
Hotel Sunroute
Shibuya Ward,
Hotel
Upper midscale
Plaza Shinjuku
Tokyo
RetailShibuya Ward,
SHIBUYA FLAG
facilityTokyo
RetailFujisawa City,
Ito-Yokado Shonandai
facility
Kanagawa
Retail
Kohnan SagamiharaMidori Ward,facility
Nishihashimoto
Sagamihara
RetailInage Ward,
Frespo Inage
facility
Chiba
Retail
Shinbashi Ekimae MTR
Minato Ward,facility
Building
Tokyo
Shibuya Ward,
Residential
Park Lane PlazaTokyo
OfficeCore Assets
Others(Note) The usage of a property with more than one use is determined based on the main use of the building

Construction
completion

Asset size
(million yen)Appraisal value(million yen)

Leasable area

Jan. 2005

82,53981,40071,806.84 ㎡

Mar. 2020

51,66056,40013,479.44 ㎡

Nov. 1990

39,90036,20020,654.60 ㎡

Nov. 1989

34,30038,40024,748.48 ㎡

Mar. 1999

5,266

5,270

13,003.41 ㎡

Jul. 1994

14,386

17,80024,495.21 ㎡

Mar. 1999

10,170

11,10015,129.16 ㎡

Nov. 1992

8,100

8,420

4,946.36 ㎡

Oct. 2008

7,050

10,2005,990.40 ㎡

Feb. 1986

6,900

8,440

18,117.03 ㎡

Nov. 2008

49,20049,20022,755.55 ㎡

Oct. 1997

7,100

7,100

25,302.84 ㎡

Mar. 1989

19,00016,90072,246.86 ㎡

Feb. 2014

17,017

17,0175,255.06 ㎡

Mar. 1997

17,40017,40013,881.48 ㎡

Aug. 2007

32,50032,50021,248.23 ㎡

Aug. 2009

32,04041,1005,983.86 ㎡

Nov. 2002

11,60011,70053,393.66 ㎡

Aug. 2005

7,460

8,190

40,283.77 ㎡

-

2,100

2,610

39,556.71 ㎡

Apr. 1999

12,00014,5005,370.00 ㎡

Jun. 1988

3,200

4,290

4,443.03 ㎡

53

Appraisal Values of Portfolio Properties at the Fiscal Period-End(Properties owned by MORI TRUST Sogo Reit, Inc. as of February 28, 2023)
End-of-period book value

Use

Acquisition
price

Name

Direct reduction method

End-of-period appraisal value

PeriodPeriodPeriodPeriodended Sep. ended Feb. ended Sep. ended Feb.
2022
2023
2022
2023

Cap rate
Difference

Discounted cash
flow

(Million yen)Appraiser

Comparison

Discountwith the
PeriodPeriodprevious
rate
ended Sep. ended Feb.
fiscal period
2022
2023

Terminal
cap rate(Note 3)

OfficeBuilding

Tokyo Shiodome Building

82,53974,82474,666

81,40081,400

－

3.2%

3.2%

－

3.1%

3.2%

Richi Appraisal

Kamiyacho Trust Tower

27,96027,934

27,86332,30032,300

－

2.5%

2.5%

－

2.4%

2.6%

Daiwa Real Estate

ON Building

39,90038,812

38,73536,20036,200

－

3.3%

3.3%

－

3.0%

3.4%

Japan Real Estate

Kioicho Building

34,30032,93832,88538,30038,400

100

3.1%

3.1%

－

2.9%

3.3%

Daiwa Real Estate

5,266

－

5,297

－

5,270

5,270

－

4.5%

－

4.3%

4.7%

Daiwa Real Estate

Osaki MT Building

14,386

12,886

12,841

17,80017,800

－

3.2%

3.2%

－

2.9%

3.3%

Japan Real Estate

Midosuji MTR Building

10,170

9,871

9,839

11,100

11,100

－

3.5%

3.5%

－

3.3%

3.7%

Daiwa Real Estate

Hiroo MTR Building

8,100

8,329

8,316

8,420

8,420

－

3.6%

3.6%

－

3.4%

3.8%

Daiwa Real Estate

Tenjin Prime

7,050

6,659

6,635

9,910

10,200

290

3.6%

3.5%

-0.1%

3.3%

3.6%

Japan Real EstateShin-Yokohama TECH Building

6,900

6,653

6,595

8,280

8,440

160

4.5%

4.4%

-0.1%

4.2%

4.7%

Chuo-Nittochi

19,00015,395

15,23816,90016,900

－

4.9%

4.9%

－

4.7%

5.0%

Richi Appraisal

SHIBUYA FLAG

32,04032,39532,37440,70041,100

400

3.2%

3.2%

－

3.0%

3.3%

Japan Real Estate

Ito-Yokado Shonandai

11,600

9,663

9,619

11,70011,700

－

5.3%

5.3%

－

5.0%

5.5%

Japan Real Estate

Kohnan Sagamihara-Nishihashimoto

7,460

7,069

7,048

8,330

8,190

-140

5.3%

5.4%

0.1%

5.1%

5.6%

Japan Real Estate－(Note 1)－(Note 1)－

7.9%－(Note 2)

Japan Real Estate

Sendai MT Building（Note 1）

Hotel Hotel Okura Kobe

Retail Facility
Residential

Frespo Inage（Note 2）

2,100

2,193

2,193

2,610

2,610

－

Shinbashi Ekimae MTR Building（Note 3）

12,00017,24011,65821,80014,500-7,300

3.6%

3.6%

－

3.4%

3.8%

Chuo-Nittochi

3,200

3,097

3,088

4,250

4,290

40

3.3%

3.3%

－

4.0%

3.0%

Chuo-Nittochi

Park Lane Plaza

Unrealized gain or loss
Period ended Period ended
March 2022
Feb. 2023

Total

44,03343,922Difference

-111

54

Appraisal Values of Portfolio Properties at the Fiscal Period-End(Properties owned by MORI TRUST Hotel Reit, Inc. as of February 28, 2023)
End-of-period book value

Use

Acquisition
price

Name

Shangri-La Tokyo

Direct reduction method

End-of-period appraisal value

PeriodPeriodPeriodPeriodended Aug. ended Feb. ended Aug. ended Feb.
2022
2023
2022
2023

Cap rate
Difference

PeriodPeriodended Sep. ended Feb.
2022
2023

Discounted cash
flow

(Million yen)Appraiser

Comparison
with theprevious
fiscal period

Discount
rate

Terminal
cap rate(Note 3)40,97040,86749,60049,200

-400

3.2%

3.2%

－

2.9%

3.4%

Japan Real Estate

Hotel

Hilton Odawara Resort & Spa（Note 1）

6,500

6,395

6,437

7,050

7,100

50

4.7%

4.7%

－

4.5%

4.8%

Richi Appraisal

Courtyard by Marriott Tokyo Station（Note 2）

12,903

12,487

12,444

16,92317,017

94

3.7%

3.7%

－

3.4%

3.9%

Japan Real Estate

Courtyard by Marriott Shin-Osaka Station

17,60017,12817,08017,40017,400

－

4.2%

4.2%

－

3.9%

4.4%

Japan Real Estate

Hotel Sunroute Plaza Shinjuku

28,60027,39027,28232,50032,500

－

3.5%

3.5%

－

3.3%

3.7%

Japan Real Estate

Unrealized gain or loss
PeriodPeriodended
ended Feb. Difference
March 2022
2023
Total

19,102

19,1042

55

Changes in Occupancy Rate
▮ Monthly Occupancy Rates for Each Use Category (from end of previous period to end of current period)
Use
Core
Assets
Other
Total

Sep. 30, 2022

Office Building Master lease basis(Sublease basis)
Hotel
Retail Facility and Residential
Master lease basis(Sublease basis)

96.6%(84.6%)
100%
94.6%
96.5%
(91.6%)

Oct. 31 2022

96.6%
(84.0%)
100%
94.7%
96.5%
(91.4%)

Nov. 30, 2022

97.2%
(84.7%)
100%
94.6%
96.7%
(91.6%)

Dec. 30, 2022

Jan. 31, 2023

97.5%
(84.9%)
100%
94.6%
96.9%
(91.7%)

97.3%(86.0%)
100%
94.6%
96.8%
(92.1%)(Period ended
Feb. 2023)
Feb. 28, 2023

97.6%
(87.1%)
100%
96.3%
97.6%
(93.1%)▮ Property-Related Occupancy Rate (Most Recent 5 Fiscal Periods)
Use

March 31, 2022
March 31, 2021
September 30, 2021
September 30, 2022
February 28, 2023
(End of 38th fiscal period) (End of 39th fiscal period) (End of 40th fiscal period) (End of 41st fiscal period) (End of 42nd fiscal period)

NameTokyo Shiodome Building（Note 2）

100%

100%

100%

Kamiyacho Trust Tower（Note3）

－

100%

100%

100%
90.8%
（89.5%）

100%
89.7%(89.7%)

100%
96.3%(95.6%)

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

－

－

－

－

100%
（85.0%）
100%（95.6%）
100%

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

100%(95.2%)
100%(100%)
87.5%

100%(95.6%)
100%(96.4%)
100%

ON Building
Office Building

Kioicho Building（Note 4）

Sendai MT Building（Note 5）

Osaki MT Building（Note 6）

Midosuji MTR Building（Note 7）

Hiroo MTR Building（Note 8）

Tenjin Prime（Note 8）Shin-Yokohama TECH Building
Hotel Hotel Okura Kobe
Retail Facilities
Residential

SHIBUYA FLAG
Ito-Yokado Shonandai（Note 8）100%
(70.8%)
100%(99.3%)
100%
97.8%(95.6%)
100%(99.9%)
100%(88.3%)
100%(100%)
92.4%

100%

100%

100%

100%

100%

100%

100%

59.9%

71.7%

78.0%
100%

100%

100%

100%

100%

92.2%

92.2%

100%

100%

100%

100%

100%

100%

100%

100%

Kohnan Sagamihara-Nishihashimoto

100%

100%

100%

100%

100%

Frespo Inage

100%

100%

100%

100%

100%

Shinbashi Ekimae MTR Building

100%

100%

0%

0%

0%

Park Lane Plaza

95.9%
99.3%
(98.6%)

100%
99.1%(91.9%)

100%
96.0%(90.5%)

96.8%
96.5%
(91.6%)

96.7%
97.6%
(93.1%)

Total（Note 9）56

Portfolio Summary and Breakdown of Property-Related Revenues/Expenses (1)Office Building
Tokyo Shiodome Building Kamiyacho Trust Tower

Location

ON Building

Kioicho Building

Sendai MT Building

Osaki MT Building

Minato Ward, Tokyo

Minato Ward, Tokyo

January, 2005

March, 2020

November 1990

November 1989

March 1999

July 1994(Renovated in 2008)

Acquisition date

April 2010

July 2021, and otherAugust 2008

October 2014

February 2023

March 2005, and otherAcquisition priceBook value
Appraisal value
Total floor space
PML (Note 6)

82,539 million yen
74,666 million yen
81,400 million yen
191,394.06㎡(Note 1)
6.0%

27,960 million yen
27,863 million yen
32,300 million yen
196,037.12㎡(Note 2)
6.5%

39,900 million yen
38,735 million yen
36,200 million yen
32,812.27㎡
8.0%

34,300 million yen
32,885 million yen
38,400 million yen
63,535.55㎡(Note 3)
11.3%

5,266 million yen
5,297 million yen
5,270 million yen
42,941.53 ㎡(Note 4)4.9%

14,386 million yen
12,841 million yen
17,800 million yen
26,980.68㎡(Note 5)
11.5%

Rental revenues (thousand yen)

Period ended
Sep. 2022

Period ended
Feb. 2023

Period ended
Sep. 2022

Period ended
Feb. 2023

Period ended
Sep. 2022

Period ended
Feb. 2023

Period ended
Sep. 2022

Period ended
Feb. 2023

Period ended
Sep. 2022

Period ended
Feb. 2023

Rental revenues
Rent
Common charges
Land leasing revenues
Other rental revenues
Property-related expenses
Property and other taxes
Property taxes
Other taxes
Overhead expenses
Property management fees
Utilities
Casualty insurance
Trust fees
Other expenses
Depreciation and amortization

916,695
916,695－－－
856,047
345,981345,981－286,589274,720
－
3,508
－
8,360
223,477

860,556
860,556－－－
729,037
345,978
345,978－
222,531211,037
－
2,894
－
8,600
160,526

536,931524,190－－
12,740159,672
9,525
9,525
－
66,07844,915
19,862283
750
266
84,068454,407442,196－－
12,210134,496
9,525
9,525 Undisclosed Undisclosed(Note 7)－ (Note 7)
53,78836,907
15,892233
625
129
71,183

1,055,109
928,486
8,828－
117,794544,022
90,24988,924
1,325
301,875
213,956
74,4991,596
800
11,024
151,896860,284
773,824
7,045－
79,414
494,669
90,24688,921
1,325
279,147
206,723
54,1981,315
666
16,243
125,275

－
－
－
－
－
－
－
－
－
－
－
－
－
－
－
－

1,063
904
－
－
159
3,452
－
－
－
300
148
146
2
2
－
3,152

357,346
356,770－－575
105,262
39,38839,388
－
6,471
1,428
－
875
－
4,167
59,401

287,614287,164－－
449
92,80939,381
39,381
－
3,048
930
－
722
－
1,395
50,37960,647

131,519377,259

319,910511,086

365,614－-2,388252,084

194,804

Construction completion

Profits and losses from real estate rental business
Earnings before depreciation and amortization (NOI)NOI yield (Note 8)

284,125
292,046
0.9%

Period ended
Feb. 2023

461,327
391,094
3.4%

Shinagawa Ward, Tokyo Chiyoda Ward, Tokyo

Period ended
Sep. 2022

530,225

415,797622,338
494,247
3.0%

662,983
490,889
3.5%

Miyagino Ward, Sendai Shinagawa Ward, Tokyo

－
－

763

311,486
245,184
4.1%

57

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

Location

Hotel

Retail Facility

Hotel Okura Kobe

SHIBUYA FLAG

Midosuji MTR Building

Hiroo MTR Building

Tenjin Prime

Shin-Yokohama TECH
Building

Chuo Ward, Osaka

Shibuya Ward, Tokyo

Chuo Ward, Fukuoka

Kohoku Ward, Yokohama

Chuo Ward, Kobe

Shibuya Ward, Tokyo

March 1989
(Expanded March 1995)

August 2009

Construction completion

March 1999

November 1992

October 2008

Building A: February 1986
Building B: February 1988

Acquisition date

April 2015

January 2018

July 2012, and otherNovember 2003

September 2006

April 2013

Acquisition priceBook value
Appraisal value
Total floor space
PML (Note 6)

10,170 million yen
9,839 million yen
11,100 million yen
15,129.16㎡
2.1%

8,100 million yen
8,316 million yen
8,420 million yen
6,709.80㎡
7.3%

7,050 million yen
6,635 million yen
10,200 million yen
7,722.04㎡
6.4%

6,900 million yen
6,595 million yen
8,440 million yen
25,187.22㎡
8.7%

19,000 million yen
15,238 million yen
16,900 million yen
72,246.86㎡
17.8%

32,040 million yen
32,374 million yen
41,100 million yen
7,766.49㎡
11.9%

Rental revenues (thousand yen)
Rental revenues
Rent
Common charges
Land leasing revenues
Other rental revenues
Property-related expenses
Property and other taxes
Property taxes
Other taxes
Overhead expenses
Property management fees
Utilities
Casualty insurance
Trust fees
Other expenses
Depreciation and amortization
Profits and losses from real estate rental business
Earnings before depreciation and amortization (NOI)NOI yield (Note 8)

Period ended
Sep. 2022

Period ended
Feb. 2023

Period ended
Sep. 2022

Period ended
Feb. 2023

Period ended
Sep. 2022

Period ended
Feb. 2023

Period ended
Sep. 2022

Period ended
Feb. 2023

Period ended
Sep. 2022

Period ended
Feb. 2023

315,848
274,869

254,587
228,090

182,598
141,788

144,491
119,470

256,344
218,134

210,074
180,834

252,906
222,050

235,381
205,068

627,790627,790524,794
524,794

6,745
5,620
－
－
34,23420,875
156,985
138,212
42,17942,17942,17942,179－－69,126
57,77827,09424,78030,081
22,881
614
507
500
416
10,8359,191
45,67938,254
158,863
116,374
204,542
154,629
3.7%

18,40815,340－－22,4009,680
57,752
41,899
11,962
11,962
11,84011,84012212230,325
16,358
8,696
4,181
18,467
8,616
254
209
400
333
2,507
3,016
15,463
13,578124,845
102,591
140,309
116,170
3.5%

19,476
16,398－－18,733
12,841
91,59682,871
28,922
28,921
28,922
28,921－－
31,69827,447
7,827
6,524
16,60814,607
225
186
1,250
625
5,786
5,503
30,976
26,502
164,747
127,202
195,724
153,705
5.3%

－
－
－
－
30,85530,312
193,253
170,056
30,07030,06630,07030,066－－92,36680,98357,56540,584
31,37335,547
888
732
－
－
2,539
4,118
70,81659,00659,65365,324130,469
124,331
4.4%

Period ended
Sep. 2022

Period ended
Feb. 2023

－
－
－
－
－
－
284,561
262,734
71,49771,49471,49771,494 Undisclosed Undisclosed(Note 7)－－ (Note 7)
13,034
22,668
－
－
－
－
7,426
6,567
2,000
1,666
3,608
14,434200,029
168,571343,229
262,060
651,808
535,714543,259
430,632
675,973556,652
5.5%
4.2%

58

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

Kohnan SagamiharaIto-Yokado Shonandai
Nishihashimoto

Frespo Inage

Shinbashi Ekimae
MTR Building

Residential

Park Lane Plaza

Total

Location
Construction completion

Fujisawa City, Kanagawa Midori Ward, Sagamihara

Inage Ward, Chiba

Minato Ward, Tokyo

Shibuya Ward, Tokyo－

November 2002

August 2005－

April 1999

June 1988－

Acquisition date

March 2003

October 2012

March 2002

April 2007

December 2004－

Acquisition priceBook value
Appraisal value
Total floor space
PML (Note 6)

11,600 million yen
9,619 million yen
11,700 million yen
53,393.66㎡
14.0%

7,460 million yen
7,048 million yen
8,190 million yen
40,283.77㎡
13.5%

2,100 million yen
2,193 million yen
2,610 million yen（39,556.71㎡）(Note 9)

12,000 million yen
11,658 million yen
14,500 million yen
7,820.45㎡(Note 10)12.2%

3,200 million yen
3,088 million yen
4,290 million yen
5,246.78㎡
14.9%

323,972 million yen
304,897 million yen
348,820 million yen－
5.5% (Note 11)

Rental revenues (thousand yen)
Rental revenues
Rent
Common charges
Land leasing revenues
Other rental revenues
Property-related expenses
Property and other taxes
Property taxes
Other taxes
Overhead expenses
Property management fees

375,068
375,000－－
68
104,884
39,09839,098
－
3,949
1,620

312,542
312,500－－
42
92,01339,09439,094 Undisclosed Undisclosed(Note 7)－ (Note 7)
2,232
1,350

123,609－－
123,609
－
8,020
7,270
7,270
－
750
－

103,007－－
103,007
－
7,894
7,269
7,269
－
625
－

－
－
－
－
－
53,76935,61235,612
－
1,146
924

－
－
－
－
－
58,31335,60935,609
－
7,034
1,311

110,427
98,839
9,043
－
2,543
36,082
7,784
7,784
－
14,663
9,408

90,656
81,626
7,536
－
1,493
34,086
7,762
7,762
－
15,245
8,527

Utilities
Casualty insurance
Trust fees
Other expenses
Depreciation and amortization

－
1,069
－
1,260
61,836
270,183－882－－
50,687
220,528

－
－
750
－
－
115,588

－
－
625
－
－
95,112－
222－－
17,010-53,769

3,819
183
－
1,720
15,668-58,313

1,624
176
－
3,452
13,63474,344

1,737
255,836
211,827
145
19,142
16,235
－
8,100
6,335
4,833
59,93881,426
11,079 1,116,153
914,440
56,569 3,844,443 3,117,671-36,758－-42,644

87,97967,649 4,960,596 4,032,111
5.1%
3.0%

Profits and losses from real estate rental business
Earnings before depreciation and amortization (NOI)NOI yield (Note 8)

Period ended
Feb. 2023

332,019
271,215
5.7%

Period ended
Sep. 2022－

Period ended
Sep. 2022

203,644

Period ended
Feb. 2023

Period ended
Sep. 2022

Period ended
Feb. 2023

Period ended
Sep. 2022

Period ended
Feb. 2023

Period ended
Sep. 2022

Period ended
Feb. 2023

169,246

229,227
190,430
6.2%

115,588
95,112
10.9%

Period ended
Sep. 2022

Period ended
Feb. 2023

6,902,340 5,828,088
6,244,322 5,321,121
236,001
196,524
123,609
103,007
298,407
207,435
3,057,896 2,710,417
881,367
879,362
877,967
877,9113,399
1,451
1,060,376
916,614717,358
600,789

59

Portfolio Summary and Breakdown of Property-Related Revenues/Expenses (4)Shangri-La Tokyo

Hilton Odawara
Resort & Spa

ホテル
Courtyard by Marriott
Tokyo Station

Courtyard by Marriott
Shin-Osaka Station

Hotel Sunroute Plaza
Shinjuku

Total

Location
Construction completion
Acquisition date
Acquisition priceBook value
Appraisal value
Total floor space
PML
Rental revenues (thousand yen)
Rental revenues
Rent
Other rental revenues
Property-related expenses
Property and other taxes
Property taxes
Other taxes
Overhead expenses
Property management fees
Utilities
Casualty insurance
Trust fees
Other expenses
Depreciation and amortization
Profits and losses from real estate rental business
Earnings before depreciation and amortization (NOI)NOI yield (Note 8)

Chiyoda Ward, Tokyo

Odawara City, Kanagawa

Chuo Ward, Tokyo

Yodogawa Ward, Osaka

Shibuya Ward, Tokyo－

August 2007－

July 2016
28,600 million yen
27,282 million yen
32,500 million yen
20,451.25㎡
3.0%－
107,603 million yen
104,112 million yen
123,217 million yen－
2.2% (Note 16)

October 1997
November 2008
(Renovated in 2004)
September 2016
September 2019
42,000 million yen
6,500 million yen
40,867 million yen
6,437 million yen
49,200 million yen
7,100 million yen
180,335.11㎡(Note 12) 50,605.67㎡(Note 13)
1.1%
14.9%

September 2016
12,903 million yen
12,444 million yen
17,017 million yen
51,242.93㎡(Note 14)
1.5%

March 1997
(Renovated in 2015)
September 2016
17,600 million yen
17,080 million yen
17,400 million yen
17,002.28(Note 15)
4.5%

Period ended
Aug. 2022

Period ended
Feb. 2023

Period ended
Aug. 2022

Period ended
Feb. 2023

Period ended
Aug. 2022

Period ended
Feb. 2023

Period ended
Aug. 2022

Period ended
Feb. 2023

Period ended
Aug. 2022

530,983
530,983－

562,609562,609－

161,136
158,8702,265

187,218
184,986
2,231

252,990
252,9827

169,829
169,829－

408,097
408,097－

157,682
157,682－

653,416652,336
1,080

110,591
316,076
426,667

50,74054,08765,61088,074
116,350
142,1614.4%

246,069
134,012
134,012
－
1,725
－
－
1,525
200
－
110,331284,913395,2452.0%

246,532
134,012
134,012
－
1,929
－
－
1,729
200
－

95,52541,95041,950
－
2,835
－
－
1,787
150
897

99,14441,94541,945
－
3,111
－
－
2,009
150
952

February 2014

74,55622,96922,969
－
7,866
－
－
377
240
7,248

70,21822,646
22,646
－
4,121
－
－
421
238
3,462

43,72043,450178,434
99,610222,154
143,061
2.2%

70,707
14,115
14,115
－
2,365
－
－
718
200
1,447

74,050
14,112
14,112
－
5,515
－
－
815
200
4,500

54,22654,421
337,390
83,632391,616
138,053
1.6%

178,399
68,721
68,721
－
1,237
－
－
1,037
200
－

Period ended
Feb. 2023

Period ended
Aug. 2022

Period ended
Feb. 2023

653,416 2,006,624 1,730,755
652,336 2,003,270 1,727,444
1,080
3,353
3,311
178,542
68,721
68,721
－
1,380
－
－
1,180
200
－

665,259
281,767
281,767－
16,031
－
－
5,446
990
9,593

668,498
281,437
281,437－
16,069
－
－
6,155
988
8,925

108,440
108,440
367,459
370,991
475,016
474,874 1,341,365 1,062,257
583,457
583,315 1,708,825 1,433,248
4.1%
2.7%

60

Portfolio Data of Properties Owned of MORI TRUST Hotel Reit, Inc.
Property nameShangri-La Tokyo

Hilton Odawara
Resort & Spa

Courtyard by Marriott
Tokyo Station

Courtyard by Marriott
Shin-Osaka Station

Hotel Sunroute Plaza
Shinjuku

Hotel grade

LuxuryUpper Upscale

UpscaleUpscaleUpper midscale

200

163

150

332

624

Developer

Mori Trust-Mori TrustMori TrustMori Trust

Hotel operation format

LeasedMC (Note 2)

FC (Note 3)

FC (Note 3)

LeasedShangri-La Hotels Japan

Hilton Worldwide Manage

MORI TRUST HOTELS &RESORTS CO., LTD.

MORI TRUST HOTELS &RESORTS CO., LTD.

Sotetsu Hotel Management

Contract period

From Sep. 1, 2016
to Nov. 30, 2023

From Sep. 2, 2019
to Dec. 31, 2049

From Sep.16, 2016
to Apr. 1, 2039

From Sep. 16, 2016
to Nov. 1, 2040

From Aug. 20, 2007
to Aug. 31, 2027

[Termination during
the contracted period]

Not allowed

Not allowed
for the first 5 years

Not allowed
for the first 10 years

Not allowed
for the first 10 years

Not allowed[Revision of rent]

Possible by consultation
every 5 years

Possible by consultation
every 5 years

Possible by consultation
every 5 years

Possible by consultation
every 5 years

None

TenantMori Trust(Master Lessee)

MT & Hilton HotelMori Trust(Master Lessee)

Mori Trust(Master Lessee)

Sotetsu Hotel Management[Subtenant]Shangri‐La Hotels Japan-

Rent type

Variable (monthly)
With minimum annual
guaranteed rent

Rent varies each fiscal period(The monthly amount is fixedduring a fiscal period.)

MORI TRUST HOTELS &RESORTS CO., LTD.
Variable (monthly)
With minimum annual
guaranteed rent

MORI TRUST HOTELS &RESORTS CO., LTD.
Variable (monthly)
With minimum annual
guaranteed rent

Calculation base forvarliable rent

Total revenue

ProfitProfitProfitNo. of guestrooms(Note 1)

Lease agreements

Hotel operator

Rent

Rent

Rent

variablerent

Rent scheme

Minimum annual
guaranteed rent
882,700,000 yen (Note)variable
rent

Total revenue(Note) If the total rent for the period
from April each year to March next year
falls short of the minimum annual
guaranteed rent, the difference shall be
paid by the end of February next year,
together with the rent for March nextyear.

Minimum annual guaranteed rent
289,850,000 yen (Note)

ProfitProfit(Note) If the total rent for the period from
October each year to September next year falls-

short of the minimum annual guaranteed rent,
the difference shall be paid by the end of
February next year, together with the rent for
September next year.
Minimum annual guaranteed rent shows the

Fixed
-

Rent

Rent

variablerent-variablerent
Minimum annual
guaranteed rent
460,000,000 yen (Note)

Fixed annual rent
1,304,673,360 yen

Profit(Note) If the total rent for the period
from October each year to September
next year falls short of the minimum
annual guaranteed rent, the difference
shall be paid by the end of February
next year, together with the rent for
September next year.

-

figures equivalent to 93.5% quasi-co-ownershipinterest in the trust beneficiary interest owned by
MORI TRUST Hotel Reit.

61

Interest-Bearing Liabilities after the Merger (As of March 1, 2023)▮ Short-Term Loans
LenderMizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation

Outstanding balance at Average interest
Draw down dateend of period
rate

Repayment date

2,000

0.20%

Apr. 8,2022

Apr. 7,2023

1,500

0.39%

Aug. 31,2022

Aug. 31,2023

500

0.40%

Aug. 31,2022

Aug. 31,2023

Sumitomo Mitsui Trust Bank, Limited

1,500

0.39%

Aug. 31,2022

Aug. 31,2023

Sumitomo Mitsui Trust Bank, Limited

500

0.40%

Aug. 31,2022

Aug. 31,2023

Mizuho Bank, Ltd.

500

0.39%

Aug. 31,2022

Aug. 31,2023

Mizuho Bank, Ltd.

500

0.40%

Aug. 31,2022

Aug. 31,2023

0.20%

Aug. 31,2022

Aug. 31,2023

Resona Bank, Limited.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Resona Bank, Limited.

Total

Floating

Sumitomo Mitsui Banking Corporation

1,000
475

0.40%

Aug. 31,2022

Aug. 31,2023

2,500

0.20%

Oct. 7,2022

Oct. 6,2023

500

0.20%

Oct. 14,2022

Oct. 13,2023

11,475▮ Long-Term Loans
LenderOutstanding balance at
end of period

3,500

The Bank of Fukuoka, Ltd.

Draw down date Repayment date

0.47%

Apr. 12,2016

Apr. 12,2023

1,000

0.43%

Apr. 22,2016

Apr. 21,2023

The Nishi-Nippon City Bank, Ltd.

500

0.49%

Apr. 24,2018

Apr. 24,2023

Nippon Life Insurance Company

1,000

0.56%

Nov. 30,2017May. 31,2023

Mizuho Bank, Ltd.

1,500

0.48%

Aug. 31,2016

Aug. 31,2023

Mizuho Bank, Ltd.

1,000

0.50%

Nov. 30,2018

Aug. 31,2023

MUFG Bank, Ltd.

1,000

0.50%

Nov. 30,2018

Aug. 31,2023

MUFG Bank, Ltd.

500

0.43%

Aug. 31,2018

Aug. 31,2023

Sumitomo Mitsui Trust Bank, Limited

1,000

0.50%

Nov. 30,2018

Aug. 31,2023

Development Bank of Japan Inc.

1,000

0.51%

Aug. 31,2018

Aug. 31,2023

Resona Bank, Limited.

1,000

0.48%

Aug. 31,2016

Aug. 31,2023

Development Bank of Japan Inc.

0.46%

Oct. 18,2016

Oct. 18,2023

2,000

0.64%

Nov. 30,2016

Nov. 30,2023

Mizuho Bank, Ltd.

1,000

0.30%

Nov. 30,2020Nov. 30,2023

Sumitomo Mitsui Banking Corporation

2,000

0.64%

Nov. 30,2016

Nov. 30,2023

Sumitomo Mitsui Banking Corporation

1,000

0.30%

Nov. 30,2020Nov. 30,2023

Development Bank of Japan Inc.

1,500

0.64%

Nov. 30,2016

Nov. 30,2023

Resona Bank, Limited.

1,000

0.29%

Nov. 30,2020Nov. 30,2023

Mizuho Bank, Ltd.

3,000

0.17%

Aug. 30,2019Feb. 29,2024

Mizuho Bank, Ltd.

2,000

0.33%

Nov. 29,2019Feb. 29,2024

Development Bank of Japan Inc.

1,500

0.64%

Feb. 28,2017

Feb. 29,2024

Aozora Bank, Ltd.

2,000

0.54%

Mar. 11,2016Mar. 11,2024

Shinkin Central Bank

2,000

0.57%

Mar. 19,2018Mar. 19,2024

Sumitomo Mitsui Banking Corporation

3,000

0.27%

Oct. 9,2020

Apr. 9,2024

Development Bank of Japan Inc.

2,000

0.36%

Apr. 11,2019

Apr. 11,2024

Mizuho Bank, Ltd.

1,000

0.36%

Apr. 11,2019

Apr. 11,2024

Mizuho Bank, Ltd.

3,000

0.56%

Apr. 24,2018

Apr. 24,2024

The Bank of Fukuoka, Ltd.

1,000

0.56%

May. 31,2018May. 31,2024

Mizuho Bank, Ltd.

5,000

0.36%

Nov. 29,2019Aug. 30,2024

Mizuho Bank, Ltd.

1,000

0.45%

Aug. 31,2021

Aug. 30,2024

MUFG Bank, Ltd.

3,000

0.52%

Nov. 30,2021

Aug. 30,2024

Sumitomo Mitsui Trust Bank, Limited

2,000

0.45%

Aug. 31,2021

Aug. 30,2024

Sumitomo Mitsui Banking Corporation

1,000

0.45%

Aug. 31,2021

Aug. 30,2024

Sumitomo Mitsui Banking Corporation

3,000

0.29%

Oct. 9,2020

Oct. 9,2024

Sumitomo Mitsui Banking Corporation

1,000

0.30%

Apr. 9,2021

Oct. 9,2024

Sumitomo Mitsui Trust Bank, Limited

3,000

0.53%

Nov. 30,2021

Nov. 29,2024

Development Bank of Japan Inc.

1,500

0.53%

Nov. 30,2021

Nov. 29,2024

The Nishi-Nippon City Bank, Ltd.

500

0.43%

Dec. 26,2019Dec. 26,2024

1,500

0.56%

Jan. 19,2018Jan. 17,2025

MUFG Bank, Ltd.

Sep. 29,2017

Sep. 29,2023

500

0.56%

Jan. 19,2018Jan. 17,2025

Sumitomo Mitsui Trust Bank, Limited

3,000

0.32%

Feb. 28,2020Feb. 28,2025

Mizuho Bank, Ltd.

1,000

0.65%

Feb. 28,2018

Feb. 28,2025

Sumitomo Mitsui Banking Corporation

1,000

0.65%

Feb. 28,2018

Feb. 28,2025

The Hachijuni Bank, Ltd.

1,000

0.34%

Feb. 28,2020Feb. 28,2025

500

0.65%

Feb. 28,2018

Feb. 28,2025

MUFG Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited

1,000

0.74%

0.33%

Apr. 9,2021

Apr. 9,2025

MUFG Bank, Ltd.

1,500

0.50%

Apr. 13,2021

Oct. 13,2027

4,000

0.37%

Apr. 13,2020

Apr. 11,2025

Mizuho Bank, Ltd.

1,000

0.63%

Dec. 26,2019Dec. 24,2027

MUFG Bank, Ltd.

1,000

0.32%

Apr. 13,2021

Apr. 11,2025

Mizuho Bank, Ltd.

1,000

0.47%

Jan. 19,2021

Jan. 19,2028

Sumitomo Mitsui Banking Corporation

3,000

0.46%

Apr. 24,2019

Apr. 24,2025

Mizuho Bank, Ltd.

1,000

0.55%

Feb. 26,2021

Jan. 19,2028

MUFG Bank, Ltd.

3,000

0.68%

Aug. 31,2018

Aug. 29,2025

Mizuho Bank, Ltd.

Mizuho Trust & Banking Co., Ltd.

2,000

0.68%

Aug. 31,2022

Aug. 29,2025

Sumitomo Mitsui Trust Bank, Limited

Mizuho Trust & Banking Co., Ltd.

500

0.30%

Sep. 2,2019Aug. 29,2025

Development Bank of Japan Inc.

Shinkin Central Bank

1,000

0.30%

Sep. 2,2019Aug. 29,2025

Shinkin Central Bank

Mar. 19,2018Mar. 19,2025

500

0.99%

Jan. 19,2023

Jan. 19,2028

1,500

0.99%

Jan. 19,2023

Jan. 19,2028

500

0.47%

Jan. 19,2021

Jan. 19,2028

Resona Bank, Limited.

1,000

0.91%

Mar. 1,2023

Feb. 29,2028

1,000

0.68%

Aug. 31,2022

Aug. 29,2025

The Ashikaga Bank, Ltd.

1,000

0.91%

Development Bank of Japan Inc.

500

0.30%

Sep. 2,2019Aug. 29,2025

Development Bank of Japan Inc.

1,500

0.91%

Mar. 1,2023

Mar. 1,2028

Resona Bank, Limited.

500

0.30%

Sep. 2,2019Aug. 29,2025

MUFG Bank, Ltd.

1,500

0.53%

Mar. 31,2021

Mar. 31,2028

The 77 Bank, Ltd.

500

0.68%

Aug. 31,2022

Aug. 29,2025

Sumitomo Mitsui Banking Corporation

1,500

0.54%

Apr. 9,2021

Apr. 7,2028

Sumitomo Mitsui Trust Bank, Limited

500

0.83%

Nov. 30,2022

Nov. 28,2025

Sumitomo Mitsui Banking Corporation

1,500

0.51%

Oct. 11,2019

Apr. 11,2028

Mar. 1,2023

Feb. 29,2028

500

0.83%

Nov. 30,2022

Nov. 28,2025

Aozora Bank, Ltd.

1,000

0.71%

Apr. 11,2022

Sumitomo Mitsui Banking Corporation

1,000

0.43%

Jan. 19,2022

Jan. 19,2026

Mizuho Bank, Ltd.

1,500

0.51%

Oct. 17,2019

Apr. 17,2028

The Bank of Fukuoka, Ltd.

1,000

0.42%

Jan. 31,2020Jan. 30,2026

MUFG Bank, Ltd.

1,000

0.99%

Mar. 1,2023

Aug. 31,2028

Sumitomo Mitsui Banking Corporation

1,500

0.47%

Feb. 28,2022

Feb. 27,2026

SBI Shinsei Bank, Limited

1,000

0.53%

Aug. 31,2020Aug. 31,2028

Sumitomo Mitsui Banking Corporation

1,500

0.50%

Mar. 1,2023

Feb. 27,2026

The 77 Bank, Ltd.

1,000

0.54%

Aug. 31,2020Aug. 31,2028

Sumitomo Mitsui Banking Corporation

1,000

0.52%

Feb. 28,2019Feb. 27,2026

Mitsui Sumitomo Insurance Company, Limited

1,500

0.59%

Oct. 29,2021

Oct. 31,2028

Sumitomo Mitsui Trust Bank, Limited

1,500

0.41%

Feb. 26,2021

Feb. 27,2026

Mizuho Bank, Ltd.

2,000

1.07%

Feb. 28,2023

Feb. 28,2029

Sumitomo Mitsui Trust Bank, Limited

1,000

0.50%

Aug. 31,2022

Feb. 27,2026

Mizuho Bank, Ltd.

1,000

1.07%

Mar. 1,2023

Feb. 28,2029

SBI Shinsei Bank, Limited

1,000

0.63%

Mar. 1,2023

Feb. 27,2026

Development Bank of Japan Inc.

3,000

0.71%

Feb. 28,2022

Feb. 28,2029

The Chiba Bank, Ltd.

500

0.62%

Mar. 1,2023

Feb. 27,2026

Mizuho Trust & Banking Co., Ltd.

1,000

1.07%

Feb. 28,2023

Feb. 28,2029

The Yamanashi Chuo Bank, Ltd.

500

0.62%

Mar. 1,2023

Feb. 27,2026

Mizuho Trust & Banking Co., Ltd.

1,000

1.07%

Mar. 1,2023

Feb. 28,2029

Development Bank of Japan Inc.

1,000

0.41%

Mar. 12,2021

Mar. 12,2026

Aozora Bank, Ltd.

1,000

1.07%

Mar. 1,2023

Feb. 28,2029

Nippon Life Insurance Company

500

0.36%

Sep. 30,2020Mar. 31,2026

Mizuho Bank, Ltd.

1,000

0.82%

Apr. 11,2022

1,000

0.39%

Apr. 22,2021

Apr. 22,2026

Aozora Bank, Ltd.

1,500

0.59%

Apr. 23,2021

Apr. 23,2029

500

0.72%

Apr. 24,2018

Apr. 24,2026

Mizuho Bank, Ltd.

1,500

1.23%

Mar. 1,2023

Feb. 28,2030

Sumitomo Mitsui Banking Corporation

2,000

0.75%

Aug. 31,2022

May. 29,2026

Sumitomo Mitsui Banking Corporation

1,000

1.23%

Mar. 1,2023

Feb. 28,2030

Mizuho Bank, Ltd.

1,000

0.75%

Sumitomo Mitsui Trust Bank, Limited

1,000

Resona Bank, Limited.
Aozora Bank, Ltd.

Resona Bank, Limited.

500

Fixed

0.54%

1,000

Mizuho Bank, Ltd.

Fixed

500

Resona Bank, Limited.

Mizuho Bank, Ltd.

0.64%

2,500

Sumitomo Mitsui Trust Bank, Limited

Fixed

Mizuho Bank, Ltd.

Sep. 30,2027

1,000

Sumitomo Mitsui Banking Corporation

MUFG Bank, Ltd.

Averageinterest rate

Sep. 30,2022

Development Bank of Japan Inc.

Apr. 11,2028

Apr. 11,2029

Aug. 31,2022

May. 29,2026

MUFG Bank, Ltd.

500

0.79%

Feb. 28,2022

Feb. 28,2030

0.75%

Aug. 31,2022

May. 29,2026

Mizuho Bank, Ltd.

1,500

0.90%

Apr. 11,2022

Apr. 11,2030

0.39%May. 31,2021

May. 29,2026

MUFG Bank, Ltd.

2,000

0.92%

Apr. 13,2022

Apr. 12,2030

MUFG Bank, Ltd.

3,000

0.70%

Mar. 1,2023

Aug. 31,2026

Sumitomo Mitsui Banking Corporation

1,000

0.65%

Dec. 24,2021

Jun. 24,2030

Sumitomo Mitsui Trust Bank, Limited

2,000

0.55%

Aug. 31,2022

Aug. 31,2026

Sumitomo Mitsui Banking Corporation

1,500

0.76%

Jan. 19,2022

Jul. 19,2030

Mizuho Bank, Ltd.

1,000

0.36%

Sep. 2,2019Aug. 31,2026

Mizuho Bank, Ltd.

1,000

0.62%

Aug. 31,2021

Aug. 30,2030

Development Bank of Japan Inc.

1,000

0.33%

Aug. 30,2019Aug. 31,2026

Mizuho Bank, Ltd.

500

0.63%

Aug. 30,2021

Aug. 30,2030

The Nishi-Nippon City Bank, Ltd.

1,000

0.41%

Aug. 31,2020Aug. 31,2026

Sumitomo Mitsui Banking Corporation

2,000

0.98%

Apr. 28,2022

Oct. 28,2030

500

0.31%

Aug. 30,2019Aug. 31,2026

Mizuho Bank, Ltd.

1,500

0.66%

Aug. 31,2021

Feb. 28,2031

Sep. 18,2026

Mizuho Bank, Ltd.

1,500

0.98%

Apr. 11,2022

Apr. 11,2031

The 77 Bank, Ltd.

500

0.40%

Apr. 23,2021

Mitsui Sumitomo Insurance Company, Limited

500

0.39%

Sep. 30,2020Sep. 30,2026

Sumitomo Mitsui Banking Corporation

5,500

0.50%

Feb. 28,2023

Nov. 30,2026

Sumitomo Mitsui Trust Bank, Limited

1,000

0.42%

Dec. 24,2021

Dec. 24,2026

MUFG Bank, Ltd.

1,000

0.40%

Dec. 25,2020Dec. 25,2026

Resona Bank, Limited.

500

0.56%

Dec. 26,2019Dec. 25,2026

The Bank of Fukuoka, Ltd.

500

0.56%

Dec. 26,2019Dec. 25,2026

Mizuho Bank, Ltd.

500

0.50%

Jan. 19,2022

Jan. 19,2027

The Bank of Fukuoka, Ltd.

1,000

0.51%

Jan. 31,2022

Jan. 29,2027

The NorinchukinBank

3,000

0.38%

Feb. 28,2020Feb. 26,2027

Sumitomo Mitsui Trust Bank, Limited

1,500

0.59%

Aug. 31,2022

Feb. 26,2027

The Ashikaga Bank, Ltd.

1,000

0.63%

Apr. 22,2022

Apr. 22,2027

Aozora Bank, Ltd.

500

0.45%

Dec. 24,2021

Jun. 24,2027

SUMITOMO LIFEINSURANCECOMPANY

500

0.59%

Dec. 26,2019

Jun. 25,2027

The Bank of Fukuoka, Ltd.

1,000

0.55%

Jan. 31,2022

Jul. 30,2027

MUFG Bank, Ltd.

3,000

0.84%

Mar. 1,2023

Aug. 31,2027

Sumitomo Mitsui Trust Bank, Limited

1,500

0.63%

Aug. 31,2022

Aug. 31,2027

Sumitomo Mitsui Trust Bank, Limited

1,000

0.84%

Feb. 28,2023

Aug. 31,2027

The NorinchukinBank

1,500

0.38%

Aug. 30,2019Aug. 31,2027

The Nishi-Nippon City Bank, Ltd.

Nippon Life Insurance Company

1,500

0.48%

Aug. 31,2020Aug. 31,2027

Resona Bank, Limited.

500

0.48%

Aug. 31,2020Aug. 31,2027

SUMITOMO LIFEINSURANCECOMPANY

500

0.38%

Aug. 30,2019Aug. 31,2027

The Dai-ichi Life Insurance Company,Limited

500

0.56%

Feb. 28,2022

Aug. 31,2027

1,000

0.43%

Mar. 12,2020Sep. 10,2027

Development Bank of Japan Inc.

Total

200,500

13th unsecured investment corporation bonds

Balance at end of
period3,000

16th unsecured investment corporation bonds
6th unsecured investment corporation bonds

IssueInterest rate

Issue date

Maturity date

0.17%

2021.2.25

2024.2.22

1,000

0.11%

2022.2.21

2025.2.28

1,000

1.07%

2015.2.26

2027.2.26

18th unsecured investment corporation bonds

2,000

0.42%

2022.6.20

2028.2.29

19th unsecured investment corporation bonds

3,000

0.79%

2023.2.17

2029.2.28

14th unsecured investment corporation bonds

1,000

0.50%

2021.2.25

2031.2.25

17th unsecured investment corporation bonds

1,000

0.50%

2022.2.21

2032.2.27

15th unsecured investment corporation bonds

1,000

0.75%

2021.2.25

2036.2.25

9th unsecured investment corporation bonds

1,000

1.08%

2017.2.23

2037.2.23

Total

14,000(Note) The short-term loans, long-term loans, and investment corporation bonds are all
unsecured and unguaranteed.

Total interest-bearing liabilities at theend of the period：¥225,975 million
Taking by the Merger, borrowing and issuing by March 1, 2023

62

Investors(Status of MORI TRUST Sogo Reit, Inc. as of February 28, 2023)▮ Top 10 Unitholders (Total Number of Outstanding Investment Units: 1,320,000)
Number ofunits held
350,070

Unitholders
MORI TRUST Holdings, Inc.

（As of Feb. 2023)

Ownership ratio
26.5%

Custody Bank of Japan, Ltd.(Trust accounts)

271,702

20.6%

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

128,238

9.7%

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

52,214

4.0%

STATE STREET BANK WEST CLIENT - TREATY 505234

16,676

1.3%

SSBTC CLIENT OMNIBUS ACCOUNT

16,662

1.3%

LEGAL + GENERAL ASSURANCE PENSIONS MANAGEMENT LIMITED

16,234

1.2%

THE HACHIJUNI BANK,LTD.

13,0851.0%

JP MORGAN CHASE BANK 385771

12,232

0.9%

STATE STREET BANK AND TRUST COMPANY FOR DWS RREEF REAL ASSETS FUND

11,6500.9%

888,763

67.3%

Total of top 10 unitholders▮ Changes in Investment Unitholder Ratio by Owner(End of Each Fiscal Period)▮ Changes in Number of Investment Unitholders by Owner(End of Each Fiscal Period)■ Total number of investment unitholders

Total number ofoutstanding
investment units
as of February 28,
2023: 1,320,000

Total number ofoutstanding
investment units
as of September 30,
2022: 1,320,000
Total number ofoutstanding
investment units
as of March 31, 2022:
1,320,000

18,363

Period ended Feb.2023

18,598Period ended Sep. 2022

18,819Period ended Mar. 2022

■ Individuals and others
Period ended Feb.2023

17,672

Period ended Sep. 2022

17,895
18,127

Period ended Mar. 2022

■ Financial institutions(incl. securities companies)■ Other domestic■ Overseas corporations
and individuals

corporations

Period ended Feb.2023

115

Period ended Feb.2023

295

Period ended Feb.2023

126

281

Period ended Sep. 2022

Period ended Sep. 2022

303

Period ended Sep. 2022

Period ended Mar. 2022

125

274

Period ended Mar. 2022

302

Period ended Mar. 2022

265

63

Investors(Status of MORI TRUST Hotel Reit, Inc. as of February 28, 2023)▮ Top 10 Unitholders (Total Number of Outstanding Investment Units: 500,000) （As of Feb. 2023）
Number ofunits held
184,000

Unitholders
MORI TRUST Holdings, Inc.

Ownership ratio
36.8%

Custody Bank of Japan, Ltd.(Trust accounts)

97,927

19.6%

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

55,960

11.2%

Citigroup Global Markets Japan Inc.

9,725

1.9%

SSBTC CLIENT OMNIBUS ACCOUNT

5,194

1.0%

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

5,032

1.0%

STATE STREET BANK AND TRUST COMPANY 505011

4,517

0.9%

THE BANK OF NEW YORK MELLON 140044

4,409

0.9%

STATE STREET LONDON CARE OF STATE STREET BANK AND TRUST, BOSTON SSBTC A/C
UK LONDON BRANCH CLIENTS - NETHERLAND RESIDENT - (PENSION FUNDS)

4,079

0.8%

J.P. MORGAN SECURITIES PLC FOR AND ON BEHALF OF ITS CLIENTS JPMSP RE CLIENTASSETS-SETT ACCT

2,683

0.5%

373,526

74.7%

Total of top 10 unitholders▮ Changes in Investment Unitholder Ratio by Owner(End of Each Fiscal Period)
Total number ofoutstanding
investment units
as of February 28,
2023: 500,000
Total number ofoutstanding
investment units
as of September 30,
2022:500,000
Total number ofoutstanding
investment units
as of March 31,
2022: 500,000▮ Changes in Number of Investment Unitholders by Owner(End of Each Fiscal Period)■ Total number of investment unitholders
8,181

Period ended Feb.2023
Period ended Sep. 2022

8,732

Period ended Mar. 2022

8,776

■ Individuals and others
7,828

Period ended Feb.2023
Period ended Sep. 2022

8,359

Period ended Mar. 2022

8,401

■ Financial institutions(incl. securities companies)■ Other domestic
corporations■ Overseas corporations
and individuals

64Changes in Unit Prices▮ Closing Unit Price and Trading Volume (February 13, 2004 to February 28, 2023)*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 on March 1, 2023, and figures prior to March 1, 2023 are revised accordingly.

▮ Comparative Performance of Closing Unit Price (February 13, 2004 to February 28, 2023)

65

Changes in Vacancy Rate and Rent per Unit in Major Cities▮ Tokyo Business Districts▮ Yokohama Business Districts

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

Yokohama business districts : Kannai, Yokohama Station, ShinYokohama, and Minato Mirai 21▮ Fukuoka Business Districts▮ Sendai Business Districts▮ Nagoya Business Districts

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

Nagoya business districts : Meieki, Fushimi, Sakae, andMarunouchi

Fukuoka business districts : Akasaka Daimyo, Tenjin, Yakuin and
Watanabe Dori, Gion and
Gofukumachi, Hakata Station front,
Hakata Station East and South▮ Osaka Business Districts

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

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

66

Asset Management Company Remuneration Methods (After March 1, 2023)

Agreement

Calculation rate
for remuneration

Calculation method

For each operation period, the average amount of the total appraisal value of assets at
Remuneration the end of the settlement period under review and the total appraisal value of assets at
the end of the previous settlement period shall be multiplied by up to 0.2%, being the
Method 1
percentage 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 priorfiscal period-end)
÷ 2 x 0.15% x 1/2

The amount shall be derived by multiplying the result of dividing profit before deducting
Management fee 2 in each business period by the total number of investment units
outstanding in each Accounting Period (rounded off to the nearest yen) by the rate of
up to 0.0012% determined by the Board of Directors.
Remuneration Profit before Management fee 2 is the amount derived by adding amortization of
Method 2
goodwill to and subtracting gains on negative goodwill incurred from profit before
income taxes calculated pursuant to corporate accounting standards generally deemed
fair and appropriate in Japan (before subtracting Management fee 2 and non-deductible
consumption tax and other dues applicable to Management fee 2), after adding thetotal amount of any loss carried forward.

0.0006%（Note 2）

Profit per unit x Profit x 0.0006％

Refer to left
columnTotal amount of the acquisition price percentage
listed in the left column

Refer to left
columnTransfer amount x 0.05%

Remuneration
Method 3

In the event MTR acquires specified assets stipulated in the agreement, the rate of
remuneration shall be a set percentage of the acquisition price of each property(excluding consumption tax, local consumption tax and transaction-related expenses),
as listed below.
- For acquisitions up to ¥15 billion, remuneration is 0.4% of the amount- For acquisitions from ¥15 billion to ¥30 billion, remuneration is 0.1% of the amount- For acquisitions above ¥30 billion, remuneration is 0.05% of the amountIn the event MTR transfers specified assets stipulated in its agreement, the rate ofRemuneration
remuneration shall be 0.05% of the transfer amount of each asset transferred
Method 4(excluding consumption tax, local consumption tax and transaction-related expenses).

67

Organization chart of New MTR

Transfer Agent,
General Administrator of
Accounting and Asset
Custodian12

Sumitomo Mitsui
Trust Bank, Limited

MORI TRUST REIT, Inc.

General Administrator of
Investment Corporation Bonds
MUFG Bank, Ltd.
Sumitomo Mitsui
Trust Bank, Limited
Mizuho Bank, Ltd.

Sponsor Company
MORI TRUST CO., LTD.

New MTR

General Meeting ofUnitholders

3

6
7

Board of Management
Executive Director:
Masayuki Yagi
Supervisory Director:
Naomasa Nakagawa
Supervisory Director:
Harumi Katagiri
Accounting Auditor
Ernst & Young
ShinNihon LLC
4

1

General Services Agreement

2

Asset Custody Agreement

3

Fiscal, Issuing and Payment
Agency Agreement

4

Asset Management Agreement

5

General Services Agreement

6

Letter of agreement for theprovision of information onreal estate, etc.
Trademark Licensing Agreement

78(Administration of Registration
Share Issuance and Accounting)(Administration of Organizational Operation)

Letter of agreement for sponsor
support8

Sponsor Company
Mori Trust Hotels& Resorts Co., Ltd.

5

Asset Management Company and General Administrator of Organizational Operations

MORI TRUST Asset Management Co., Ltd.

68

Notes (1)Figures are rounded down to the nearest unit unless otherwise specified in this information package. However, percentages (%) are rounded off.
Property names are sometimes indicated using the following abbreviations.
Tokyo Shiodome Building：Shiodome
Kamiyacho Trust Tower：Kamiyacho
Sendai MT Building：Sendai
Shin-Yokohama TECH Building：Shin-Yokohama
Shangri-La Tokyo：Shangri-La or SL
Hilton Odawara Resort & Spa：Hilton Odawara or HO
Courtyard by Marriott Tokyo Station：Courtyard Tokyo or CYT
Courtyard by Marriott Shin-Osaka Station：Courtyard Shin-Osaka or CYO
Hotel Sunroute Plaza Shinjuku：Sunroute
Shinbashi Ekimae MTR Building：Shinbashi
P.7(1) Asset size is the total acquisition price.
(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 the pass-through type,the occupancy rate calculated based on the occupancy rate under the sublease contract is stated.
(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.
(4) NAV per unit: (Year-end net asset value + Unrealized profit and loss - Total distribution) ÷ Number of investment units issued

p.12（1）Base month (period) for rent represents the month (period) used as the base for calculating rent. Indicators for respective hotels (Occupancy rate, ADR and RevPAR) show the relevant values of respective
hotels for each base month for rent.
The indicators of SL and HO are not disclosed, however, as no consent to disclosure has been obtained from the end tenant. The base month for rent is the month four months prior to the rent recording
month for SL, and the month three months prior to the rent recording month for CYT and CYO, respectively. For HO, the base period for calculation of rent, which for the 12th FP corresponds to the period
from July 2020 to June 2021, and which for the 14th FP corresponds to the period from July 2021 to June 2022, is used.
（2）Rent recording month represents the month for which MORI TRUST Hotel Reit records rent revenues. Rent indicates the rent for each rent recording month. Rent shows the actual value for each property,
rounded down to the nearest million yen.
As a result of the partial transfer of CYT conducted on August 31, 2021, the rent and the difference from the minimum guaranteed rent of CYT recorded on or after September 1, 2021 are the amountequivalent to 94.5% quasi-co-ownership interest in the trust beneficiary interest owned by MORI TRUST Hotel Reit.
As a result of the partial transfer of CYT conducted on August 31, 2022, the rent and the difference from the minimum guaranteed rent of CYT recorded on or after September 1, 2022 are the amountequivalent to 93.5% quasi-co-ownership interest in the trust beneficiary interest owned by MORI TRUST Hotel Reit.
（3）Average daily rate (ADR) represents the average unit price of guestrooms, including service charges. RevPAR (revenue per available room) represents the accommodation revenue per room for the total
number of guestrooms available for sale, including service charges.
（4）At CYT, since the difference (shortfall) of 286 million yen between the total amount of rent for the period from October 2020 to September 2021 and the minimum annual guaranteed rent, 262 million yen
was added to rent for the 11th FP and also 23 million yen (out of this amount, the amount equivalent to 94.5% quasi-co-ownership interest in the trust beneficiary interest owned by MORI TRUST Hotel Reit
is 22 million yen.) was added to rent for the 12th FP separately. Also, since there is the difference (shortfall) of 274 million yen between the total amount of rent for the period from October 2021 toSeptember 2022 and the minimum annual guaranteed rent, 251 million yen (out of this amount, the amount equivalent to 94.5% quasi-co-ownership interest in the trust beneficiary interest owned by
MORI TRUST Hotel Reit is 237 million yen.) was added to the rent for the 13th fiscal period and also 22 million yen (out of this amount, the amount equivalent to 93.5% quasi-co-ownership interest in thetrust beneficiary interest owned by MORI TRUST Hotel Reit is 21 million yen.) will be added to the rent for the 14th fiscal period separately.
（5）At CYO, since there is the difference (shortfall) of 420 million yen between the total amount of rent for the period from October 2020 to September 2021 and the minimum annual guaranteed rent,
385 million yen was added to rent for the 11th FP and also 35 million yen was added to rent for the 12th FP separately. Also, since there is the difference (shortfall) of 412 million yen between the total
amount of rent for the period from October 2021 to September 2022 and the minimum annual guaranteed rent, 378 million yen was added to the rent for the 13th fiscal period and also 34 million yen will
be added to the rent for the 14th fiscal period separately.
（6）For CYT and CYO, the calculation method for ADR, which is calculated based on the average throughout the period for each settlement period, was changed from the 14th fiscal period onward.

69

Notes (2)P.13（1）Base month (period) for rent represents the month (period) used as the base for calculating rent. Indicators for respective hotels (Occupancy rate, ADR and RevPAR) show the relevant values of respective
hotels for each base month for rent.
The indicators of SL and HO are not disclosed, however, as no consent to disclosure has been obtained from the end tenant. The base month for rent is the month four months prior to the rent recording
month for SL, and the month three months prior to the rent recording month for CYT and CYO, respectively. For HO, the base period for calculation of rent, which for the 13th FP corresponds to the period
from January 2021 to December 2021, and which for the 14th FP corresponds to the period from July 2021 to June 2022, is used.
（2）Rent recording month represents the month for which MORI TRUST Hotel Reit records rent revenues. Rent indicates the rent for each rent recording month. Rent shows the actual value for each property,
rounded down to the nearest million yen.
As a result of the partial transfer of CYT conducted on August 31, 2021, the rent and the difference from the minimum guaranteed rent of CYT recorded on or after September 1, 2021 are the amountequivalent to 94.5% quasi-co-ownership interest in the trust beneficiary interest owned by MORI TRUST Hotel Reit.
As a result of the partial transfer of CYT conducted on August 31, 2022, the rent and the difference from the minimum guaranteed rent of CYT recorded on or after September 1, 2022 are the amountequivalent to 93.5% quasi-co-ownership interest in the trust beneficiary interest owned by MORI TRUST Hotel Reit.
（3）Average daily rate (ADR) represents the average unit price of guestrooms, including service charges. RevPAR (revenue per available room) represents the accommodation revenue per room for the
total number of guestrooms available for sale, including service charges.
（4）At CYT, since the difference (shortfall) of 286 million yen between the total amount of rent for the period from October 2020 to September 2021 and the minimum annual guaranteed rent, 262 million yen
was added to rent for the 11th FP and also 23 million yen (out of this amount, the amount equivalent to 94.5% quasi-co-ownership interest in the trust beneficiary interest owned by MORI TRUST Hotel Reit
is 22 million yen.) was added to rent for the 12th FP separately. Also, since there is the difference (shortfall) of 274 million yen between the total amount of rent for the period from October 2021 toSeptember 2022 and the minimum annual guaranteed rent, 251 million yen (out of this amount, the amount equivalent to 94.5% quasi-co-ownership interest in the trust beneficiary interest owned by
MORI TRUST Hotel Reit is 237 million yen.) was added to the rent for the 13th fiscal period and also 22 million yen (out of this amount, the amount equivalent to 93.5% quasi-co-ownership interest in thetrust beneficiary interest owned by MORI TRUST Hotel Reit is 21 million yen.) will be added to the rent for the 14th fiscal period separately.
（5）At CYO, since there is the difference (shortfall) of 420 million yen between the total amount of rent for the period from October 2020 to September 2021 and the minimum annual guaranteed rent,
385 million yen was added to rent for the 11th FP and also 35 million yen was added to rent for the 12th FP separately. Also, since there is the difference (shortfall) of 412 million yen between the total
amount of rent for the period from October 2021 to September 2022 and the minimum annual guaranteed rent, 378 million yen was added to the rent for the 13th fiscal period and also 34 million yen
will be added to the rent for the 14th fiscal period separately.
（6）For CYT and CYO, the calculation method for ADR, which is calculated based on the average throughout the period for each settlement period, was changed from the 14th fiscal period onward.

P.15（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.
（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 forthe office and store section and occupancy rates based on the master lease agreement for the hotel section.
P.21（1）Asset size of each year refers to that as of the end of the fiscal period ended in March for MTR and that as of the end of the fiscal period ended in February for MTH.
（2）Before the Merger refers to the time as of the end of the fiscal period ended in February 2023 for MTR and MTH.
P.22
（1）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 occupancy rate of the property is the occupancy rate of
the entire joint management units as of February 28, 2023.
（2）Please see the release of MTR, “Notice of Acquisition and Lease of Asset (Kamiyacho Trust Tower)” dated November 22, 2022 for details of the asset to be acquired. Number of floors is based on thedesignation for this property and is not the same as the number of floors recorded in the real estate registry.
P.23（1） The picture of Tokyo World Gate Akasaka is a conceptual drawing at the time completion, and may be different from the actual result.

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Notes (3)P.24（1）Earnings of 4 properties with variable rents refer to the rent received by MTH (linked to sales) which is based on the rent calculation base month in the case of Shangri-La, the total sales for the hotel as awhole in the case of Hilton Odawara, and RevPAR which is based on the rent calculation base month in the case of Courtyard Tokyo and Courtyard Shin-Osaka. The change rate (%) for each month describedis the change in each hotel’s operational results versus the same month in 2019. RevPAR (Revenue Per Available Room) is the accommodation revenue per room for the total number of guestrooms available,
including service charges.
（2） "4 properties with variable rents" are Shangri-La, Hilton Odawara, the Courtyard Tokyo and Courtyard Shin-Osaka, all of which have variable rents.
P.25（1）"4 properties with variable rents" are Shangri-La, Hilton Odawara, the Courtyard Tokyo and Courtyard Shin-Osaka, all of which have variable rents.
（2）In the “Scope for Rent Increases at Four Hotel Properties with Variable Rent” chart, the performance for the fiscal period ended February 2020 for the four hotel properties with variable rent indicates thetotal obtained by adding the actual rent for the three hotel properties with variable rent other than the Hilton Odawara for the fiscal period ended February 2020 and the assumed rent if the Hilton Odawara,
which was acquired on September 2, 2019, had been owned from the beginning of the fiscal period ended February 2020 (September 1, 2019) (hereinafter referred to as the “Hilton Odawara assumed rent
for the fiscal period ended February 2020”). The performance for the fiscal period ended August 2019 indicates the total obtained by adding the actual rent for the three hotel properties with variable rent
other than the Hilton Odawara for the fiscal period ended August 2019 and the Hilton Odawara assumed rent for the fiscal period ended February 2020.
P.28（1）LTV of New MTR as of March 1, 2023 is calculated by dividing a sum of the total interest-bearing debts of MTR and MTH as of March 1, 2023 above by the total assets of New MTR as of March 1, 2023. Total
assets of New MTR are a sum of the total asset of MTR as of the end of February 2023 and the total asset of MTH (the total appraisal value as of the end of February 2023 for the assets owned by MTH).
P.36（1）International brand hotels refer to Shangri-La Tokyo, Hilton Odawara Resort & Spa, Courtyard by Marriott Tokyo Station and Courtyard by Marriott Shin-Osaka Station. Conrad Tokyo housed in the Tokyo
Shiodome Building is not included in international brand hotels as the category of multi-use properties is determined based on their main use.
P.37（1）The graph shows comparison with the ratios of same-boat investment announced by the other investment corporations as of October 31, 2022.
P.53（1）Asset size is stated for the acquisition price of the assets owned by MTR and for the appraisal value of the assets owned by MTH as of the end of February 2023.
（2）Appraisal value are stated for those of the assets owned by MTR and MTH as of the end of February 2023. The appraisal value for the additionally acquired interest in Kamiyacho Trust Tower on March 1 isthe appraisal value at the end of October 2022.
（3）The acquisition price and leasable area of Kamiyacho Trust Tower reflect the additional acquisition on March 1, 2023.
（4）The acquisition price for Hilton Odawara Resort & Spa is the figure equivalent to 50% quasi-co-ownership interest in the trust beneficiary interest owned by MTH.
（5）The completion of construction for, of each building of Hilton Odawara Resort & Spa, the main buildings for business use (the main facility, bade facility and sports facility) is stated. The completion of
construction for the chapel, the other main building for business use, is October 2004.
（6）For the leasable area of Hilton Odawara Resort & Spa, the area obtained by multiplying the leasable area of the subject to the trust beneficiary interest, 50,605.67 ㎡, by 50%, the quasi-co-ownership interestin the said trust beneficiary interest owned by MTH, is stated. The value is rounded to the nearest second decimal place.
（7）The acquisition price for Courtyard by Marriott Tokyo Station is the figure equivalent to 93.5% quasi-co-ownership interest in trust beneficiary interest owned by MTH.
（8）For the leasable area of Courtyard by Marriott Tokyo Station, the area obtained by multiplying the leasable area of the subject to the trust beneficiary interest, 5,620.38 ㎡, by 93.5%, the quasi-co-ownershipinterest in the said trust beneficiary interest owned by MTH, is stated. The value is rounded to the nearest second decimal place.
（9）For the leasable area of Courtyard by Marriott Shin-Osaka Station, the area obtained by multiplying the leased area of the entire building, 18,758.75 ㎡, by 74%, the interest of MTH, is stated according to“74% of 18,758.75 ㎡,” the leased area specified in the lease agreement. The value is rounded to the nearest two decimal places.
（10）The real estate in trust associated with Frespo Inage is only land, and the building is not included.

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Notes (4)P.54（1）Sendai MT Building was acquired on February 28, 2023 (90,845/300,000 co-ownership interest). Furthermore, we plan to additionally acquire 90,845/300,000 co-ownership interest on August 31, 2023,
and February 29, 2024, respectively. For the details of acquisition of Sendai MT Building, please see the release of MTR, “Notice of Sale of Asset (Shinbashi Ekimae MTR Building) and Acquisition and Lease of
Asset (Sendai MT Building)” dated July 28, 2022.
（2）For Frespo Inage, the direct reduction method is not adopted, and the terminal cap rate have not been established.
（3）Since one-third of the co-ownership interest in Shinbashi Ekimae MTR Building was sold on February 28, 2023, the co-ownership interest owned by MTR is two-thirds. The decrease in the book value andappraisal value at the end of the fiscal period compared with the previous fiscal period is due to the difference that occurred as a result of selling the co-ownership interest.
（4）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.
P.55
（1）The appraisal value, book value, and acquisition price for Hilton Odawara Resort & Spa are the amount equivalent to 50% quasi-co-ownership interest in the trust beneficiary interest owned by MORI TRUSTHotel Reit.
（2）The appraisal value at end of period and acquisition price for Courtyard by Marriott Tokyo Station are the amount equivalent to 93.5% quasi-co-ownership interest in the trust beneficiary interest owned by
MORI TRUST Hotel Reit.
（3）Richi Appraisal: Richi Appraisal Institute, Japan Real Estate: Japan Real Estate Institute
P.56（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 of each 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.
（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 theoffice and store section and occupancy rates based on the master lease agreement for the hotel section.
（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 theproperty is the occupancy rate of the entire joint management units.
（4）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 leaseagreement 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.
（5）A master lease agreement under which rent income is linked to rents under a sublease agreement has been concluded for Sendai MT Building, and the figure in brackets for the occupancy rate of thebuilding is the occupancy rate based on the sublease agreement.
（6）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 thebuilding is the occupancy rate based on the sublease agreement.
（7）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.
（8）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.
（9）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 theoccupancy 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 (2).

72Notes (5)P.57～60（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.
（2）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.
（3）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 portionof the floor space owned by a fiduciary of the trust in which MTR is the sole beneficiary is 24,598.85 m2.
（4）The Sendai MT Building is a co-owned building, and the floor area of 13,003.41m2 is calculated by multiplying MTR’s co-owned interest (ratio of 90,845/300,000) with the total floor space.
（5）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.
（6）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.
（7）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.
（8）NOI earnings yield is calculated by converting NOI in the fiscal period ended September 2022 to an annual basis.
（9）The floor area of Frespo Inage is the area of the real estate trust associated with the real estate trust’s beneficiary rights.
（10）This is a co-owned building, and the area that is obtained by multiplying the above area by MTR's co-owned interest (2/3) is 5,213.63 ㎡.
（11）Portfolio PML is calculated by assuming an earthquake with an epicenter close to Tokyo’s Minato Ward out of multiple earthquake scenarios.
（12）This building is a unit ownership building, but the area of the entire building of MARUNOUCHI TRUST TOWER MAIN and MARUNOUCHI TRUST TOWER NORTH is stated. The floor area of the exclusive
element owned by the trustee with MORI TRUST Hotel Reit as the sole beneficiary is 22,300.31 ㎡ (area written in the registration book).
（13）The grand total of total floor area for the entire buildings of the Hilton Odawara Resort & Spa is stated. The quasi-co-ownership interest in the Hilton Odawara Resort & Spa owned by MORI TRUST Hotel
Reit is 50%.
（14）This building is a unit ownership building, and the total floor area of the entire building of KYOBASHI TRUST TOWER is stated. The floor area of the exclusive element owned by the trustee with MORI
TRUST Hotel Reit is 5,502.63 ㎡ (area written in the registration book). The quasi-co-ownership interest in the Courtyard by Marriott Tokyo Station owned by MORI TRUST Hotel Reit is 93.5%.
（15）The total floor area of the entire building is stated. The interest in the Courtyard by Marriott Shin-Osaka Station owned by MORI TRUST Hotel Reit is 74%.
（16）Portfolio PML is calculated by assuming an earthquake with an epicenter close to Tokyo’s Minato Ward out of multiple earthquake scenarios.
P.67（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.
（2） At a Board of Management meeting held on January 26, 2023, it was decided that the calculation rate for remuneration in the rate stated above will be reduced.

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