Investor Presentation
for Financial Results

Fiscal Period Ended August 2023
(43rd Fiscal Period)
Security Code：8961

Asset Management Company
MORI TRUST Asset Management Co., Ltd.
0Contents
1. Financial Highlights for 43rd FP Ended August 2023

7. Characteristics of MORI TRUST REIT, Inc.



Fiscal Period Ended August 2023 (43rd FP) Settlement Highlights

P.03





Financial Highlights for 43rd FP Ended August 2023

P.04

Fundamental Principles and Characteristics of MTRIntensive Investment in High-quality Assets

P.27



Performance Summary at Four Hotel Properties with Variable Rent P.05



Portfolio Consisting Primarily of High-quality Properties Developed by the Sponsor

P.28



Mori Trust Group’s Track Record of Developing a Variety of High-quality Assets P.29

2. Overview of the Settlement for 43rd FP Ended August 2023

P.26



Broad Collaboration with the Mori Trust Group

P.30



Overview of the Settlement for the FP Ended August 2023 (43rd FP) P.07

Mori Trust Group

P.31



Factors of Change in Distributions per Unit (Previous Forecast for FP Ended

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

P.32



Major Hotel Development Projects Underway by Mori Trust Group P.33

August 2023 vs. Actual for FP Ended August 2023)

P.08

3. Forecasts for the FP Ending February 2024 (44th FP)
and August 2024 (45th FP)

8. Appendix



Future Outlook as a Basis for Forecasting Business Performance

P.10





Summary of Forecasts for the FP Ending February 2024
P.11

(44th FP) and August 2024 (45th FP)Factors of Change in Distributions per Unit (Actual for FP Ended August2023 vs. Revised Forecast for FP Ending August 2024)



P.12

Factors of Change in Distributions per Unit (Revised Forecast for FP Ending
February 2024 vs. Revised Forecast for FP Ending August 2024)

P.35



Overall Status of Hotel Market

P.36



43rd FP Operating Results by Property (Year-on-Year Comparison)

P.37



43rd FP Operating Results by Property (Period-on-Period Comparison) P.38
Performance of each hotel assets (Hilton Odawara・Courtyard by
Marriott Tokyo Station・Courtyard by Marriott Shin-Osaka Station)

P.39[Reference] Timing of Compensating for the Difference from the
Minimum Guaranteed Rent

P.42



Financial Statements for the FP ended August 2023 (43rd FP)

P.43



P.13

4. External and Internal Growth Strategy
Investment Policy, Track of Asset Size Growth andAcquisition of Properties Developed by a Sponsor(Additional Acquisition of Kamiyacho Trust Tower)External Growth and Portfolio Summary

P.15

Changes in Indicators

P.46



Summary of External Growth Strategy

P.16

Changes in Asset Size, LTV and Distribution Per Unit

P.47





P.17

P.48



Summary of Internal Growth Strategy (office)Portfolio List (As of August 31, 2023)

Appraisal Values of Portfolio Properties at the FP-End (As of August 31, 2023)

Summary of Internal Growth Strategy (hotel)

P.18

P.49





Changes in Occupancy Rate

P.50



Portfolio Summary and Breakdown of Property-Relate Revenues/Expenses P.51



Overview of Lease Contracts

P.55



Details of Hotel Property Lease Contracts

P.56



5. Financial Status


Financial Status(Management Results and Loan Repayment Schedule Diversification)

P.20



Interest-Bearing Liabilities (As of August 31, 2023)

P.57



Financial Status (Status of Interest-Bearing Liabilities)

P.21



Investors

P.58



Accounting of Goodwill

P.22



Changes in Unit Prices

P.59



Changes in Vacancy Rate and Rent per Unit in Major Cities

P.60



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

P.61



Organization Chart

P.62



Note

P.63

6. Initiatives Related to ESG
Initiatives Related to ESG

P.24

1

Financial Highlights for 43rd FP Ended August 2023

Fiscal Period Ended August 2023 (43rd FP) Settlement Highlights
Distribution per Unit for 43rd FP

1,700 yen (up 116 yen (up 7.3%) vs forecast as of April 2023)

Distribution per Unit (excluding temporary factors)

1,607 yen (up 240 yen (up 17.6%) vs forecast as of April 2023)

Key Figures in Results for 43rd FP
Operating revenues

11,812 mn yen (up 202 mn yen vs forecast)

Real estate rental income

6,992 mn yen (up 868 mn yen vs forecast)NOI

7,988 mn yen (up 324 mn yen vs forecast)

Net income

7,157 mn yen (up 1,520 mn yen vs forecast)* Temporary factors: appropriation from internal reserves, factors related to gain on sale ofreal estate properties, merger related expenses, etc.

As of August 31, 2023 (change from the previous fiscal period in parentheses)

Debt

Asset
Number of property ：22 properties (up 5 properties)

Balance of interest-bearing debt ：224.5 billion yen(up 72.0 billion yen)

Asset size ：470.1 billion yen (up 146.1 billion yen) (Note 1)

LTV

Occupancy rate ： 98.9% (up 1.4pt)

Average interest for borrowings ： 0.57% (up 0.05pt)* Sublease basis： 97.9% (up 4.8pt) (Note 2)

Appraisal values of portfolio properties at the fiscal：492.4 billion yen (up 143.5 billion yen)period end
Unrealized profit ：41.6 billion yen (down 2.2billion yen) (Note 3)
NOI Yield

Investment ratio：[by area] Tokyo metropolitan area

78.9% (up 0.3pt)[by use] Office

56.5% (down 16.5pt)

Hotel30.2% (up 24.4pt)(Note 6)

Average duration ofinterest – bearing liabilities： 3.1 year (down 0.4 year)

Long-term rating of issuers：AA (stable)/ Japan Credit Rating Agency, Ltd.

Equity： 3.4% (up 0.9pt) (Note 4)

Yield after depreciation ： 3.0% (up 1.0pt) (Note 5)： 47.4% (up 0.1pt)

Number of units issued：3,560,000 units

NAV per unit

：75,240 yen

Investment unit price：73,600 yen(up 2,240,000 units)(down 0.3%) (Note 7)/ closing price on August 31, 2023

3

Financial Highlights for 43rd FP Ended August 2023
Realized distributions (*) that exceeded theinitial forecast announced in November
2022 by 297 yen (22.7%) due to internal
growth and various measures* Excluding temporary factors

1,700(Unit : yen)
Distribution excluding temporary factors

1,584

2. Promote Initiatives to Improve Profitability

3. Recovery of Hotel Performance(i) Recovery of Office Occupancy Rate

Total actual rents of Four Hotels with
Variable Rents (Note 3) recovered to
89% of the same period in 2019

・ Tokyo Shiodome Building (Note 2)
Occupancy
rate

Feb. 2023

50.8%

70.8%

・ Shin-yokohama TECH Building
Occupancy
rate

1,519

Jul. 2021

Jan. 2022

Feb. 2023

51.3%

78.0%

(Scheduled)Oct. 2023[Trends in MTR’s Hotel Business Results (Percent Change Vs. 2019)]

99.2%

20%
0%

(Scheduled)-20%

Oct. 2023

-40%

100%

-60%

(ii) Replacement of Shinbashi with Sendai(2 out of 3 Completed)

1,607
1,367

1,310
Forecast
2022/11for
43rd FP as of
当初予想
themergerannouncement(合併発表時)Forecast
for 43rd FP
2023/4as of the previous
予想修正
financialresultsannouncement(前回決算発表時)(Excluding temporary factors)

Distribution :+ 297 yen (+ 22.7%)

4. Raise Profit Level by Reducing
Depreciation• Expanded adoption of economic life
for all assets held, resulting in
longer useful lives and continuous
decline in depreciation(* Excluding temporary factors)

Effect of Raising the Levelof Distributions (*)
43rd FP
Actual44th FP
Revised Forecast

Forecast
Vs. Apr. 23+152 yen(+11.1%)

Forecast
Vs. Apr. 23+145 yen(+10.6%)

Actual実績-80%• Improved profitability by selling Shimbashi, wherecommercial tenants have vacated, and acquiring Sendai,
an office building with stable occupancy.
• The first (end of Feb. '23) and second (end of Aug. '23)transactions were completed, with the third (end of Feb.
'24) to follow. All transactions are scheduled to becompleted.

(iii) Additional Acquisition of Kamiyacho
through Merger Effect and Sponsor Support• Raise the level of distributions by using the acquisition
capacity created by the decrease in LTV due to the merger.
• The acquisition of Kamiyacho through sponsor support
demonstrates the strong commitment of the sponsor in
returning to a growth path.

5. Dealing with Commercial Tenants
Moving out (in Progress)• The tenant of Kohnan Sagamihara-Nishihashimoto(Note) moved out when the fixed-term lease contract
expired in Sep. 2023.
• As with other properties and sections, if no newcontracts are signed when the forecast is formulated in
April 2023, it is assumed that, in principle, the property
will remain vacant, and there will be no revision to theforecast due to this tenant's leaving.

Policy for Future Measures
The property is being considered for both re-tenanting
and sale given its proximity to the Ken-O Expressway
and Route 16, as well as taking into account thepotential of the area around Hashimoto Station where
the Linear Chuo Shinkansen is scheduled to open.

Apr-22
May-22Jun-22
Jul-22Aug-22
Sep-22Oct-22
Nov-22
Dec-22
Jan-23
Feb-23Mar-23Apr-23May-23Jun-23
Jul-23Aug-23

1. Realization of Distributions Significantly
Exceeding Initial Forecast

Shangri-La [Basedon rent (linked to hotel total revenue)]
シャングリ・ラ[賃料(売上連動)ベース]
Hilton Odawara [売上総額ベース][Based on hotel total revenue]
ヒルトン小田原Courtyard Tokyo [Basedon RevPAR]
コートヤード東京[RevPARベース]
Courtyard Shin-Osaka[Based on RevPAR]
コートヤード新大阪[RevPARベース](Unit : million yen)
42nd FP
43rd FP*excluding minimum
guaranteed rent

Shangri-La
Hilton Odawara
CY Tokyo
CY Shin-Osaka
Total

Actual rent Actual rent

562
184
148
123
1,019

935
189
278
296
1,699

6. Steadily Build Up Internal Reserve Balance• The sale of Shinbashi generated a gain of sale of real estate, of which
a portion was reserved internally.
Balance of internal reserve(left axis)
内部留保残高(百万円:左軸)(yen)Conversion per unit
1口当たり換算(円:右軸)(right axis)
800(mn yen)

4,000
3,000

459

2,000
1,000
0

1,636

564

2,008

Actualfor Actual
for
22/9期
23/2期
41st FP
42nd FP

(実績)

(実績)

(Note) The name of Kohnan Sagamihara-Nishihashimoto was changed to "Hashimoto MTR Building" on September 28, 2023. The same applies hereinafter.

697

600

2,482

400
200

Actualfor
23/8期
43rd FP(実績)

0

Policy on Use ofInternal Reserves

Plan to use internal
reserves to stabilize
distributions in response toa temporary decrease in
distribution(Example of utilization)‒ Temporary decrease inrevenues due totenants moving out‒ Dilution due to issuanceof new investment
units, etc.

4Summary of Four Hotels with Variable Rents
Steady recovery in each hotel, with the total actual rent performance of Four Hotels with Variable Rents reaching 89% of
the level of the same period in 2019
Shangri-La

Hilton Odawara• Although monthly volatility is high, rents calculated based on hotel revenue
continue to recover, exceeding 2019 levels in some months• In the accommodation sector, the recovery trend in domestic leisure demand
due to the reclassification of COVID-19 as Class 5 was leveraged and sales athigh unit prices continued, centering on holidays, to raise revenues.

• Monthly volatility has been decreasing in recent months• Improved consumer sentiments have led to an increase in the number of day
trip guests opting for lunch and dessert buffets, swimming pools, and natural
hot springs, contributing to the hotel's performance.

Rents vs. 2019 (Percent Change)
Period reflected in rents for the
FP ended Aug. 2023

Total Sales vs. 2019 (Percent Change)20%

Aug-23

Jul-23Jun-23May-23Apr-23Mar-23

Feb-23Jan-23

Dec-22

Nov-22Oct-22-40%

Sep-22-30%

Aug-22-20%
Feb-22-20%

Jan-220%-10%Jul-22

Period reflected in rents for the
FP ended Aug. 2023

Jun-220%

May-2210%

Apr-2220%

Mar-2230%

Courtyard Tokyo

Courtyard Shin-Osaka• The accommodation sector continues to pursue a high-unit-price strategy,
targeting overseas business travelers, by attracting customers mainly throughMarriott.com. Going forward, the challenge will be to achieve both ADR andoccupancy rates.

• Regarding ADR, while continuing the high unit-price strategy focusing on
individual customers, proactive efforts to attract group customers supported
the occupancy rate.

(Reference) Share of foreign
guests in the total number of guests

Apr-23

May

Jun.

Jul.

Aug.

73.4%

64.2%

65.5%

70.6%

68.2%

• In the food and beverage sector, sales of BBQ plans utilizing terrace seating
and free-flow plans led to a steady recovery, with average customer spend
reaching a level exceeding that of 2019.
Hotel Indicators vs. 2019
(Percent Change)
ADR for the same month
対2019年比ADR(%)
of 2019 (%)
RevPAR for the same対2019年比RevPAR(%)
month of 2019 (%)
OCC for the same対2019年比稼働率(%pt)
month of 2019 (%pt)

OCC (43rd FP)

76.2 ％ADR (43rd FP)

30,938 yen

RevPAR (43rd FP)

23,581 yen

30%
20%
10%
0%
-10%
-20%
-30%

Period reflected in rents for
the FP ended Aug. 2023

• Inbound travel is increasing for not only leisure but also business use byforeign-affiliated companies. Although the majority of visitors are from the
U.S., use from mainland China (mainly individual visitors) has been on therise recently and is now second in volume only to the U.S.
(Reference) Share of foreign
guests in the total number of guests

Hotel Indicators vs. 2019
(Percent Change)
ADR for the same month
対2019年比ADR(%)
of 2019 (%)
RevPAR for the same対2019年比RevPAR(%)
month of 2019 (%)
OCC for the same対2019年比稼働率(%pt)
month of 2019 (%pt)

OCC (43rd FP)

81.0 ％ADR (43rd FP)

20,359 yen

RevPAR (43rd FP)

16,486 yen

Apr-23

May

Jun.

Jul.

Aug.

67.2%

52.5%

61.3%

54.3%

43.2%

20%
10%
0%
-10%
-20%
-30%

Period reflected in rents for
the FP ended Aug. 2023

5

Overview of the Settlement for 43rd FP Ended August 2023

Overview of the Settlement for the FP Ended August 2023 (43rd FP)
Distribution per Unit for 43rd FP

1,700 yen (up 116 yen (up 7.3%) vs forecast as of April 2023)
Distribution per Unit (excluding temporary factors)

1,607 yen (up 240 yen (up 17.6%) vs forecast as of April 2023)
42nd FP

43rd FP(Ended Feb.2023) (Ended Aug.2023)

Items (million yen)

ActualForecast

(A)

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

(B)

11,60910,180
1,428
5,297
4,057
1,227
1,288
1,541

• Operating income was 876 million yen higher than the forecast
due to a decrease in depreciation resulting from a review of theuseful life of the asset, etc.
• Distribution per unit excluding temporary factors exceeded theforecast by 240 yen to become 1,607 yen.

Main factors in change

43rd FP(Ended Aug.2023)

Actual(for five months) (as of Apr. 2023)

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• Operating revenues exceeded the forecast by 202 million yen due
to factors such as progress with leasing and recovery in hotel
performance.

(C)

11,812
10,374
1,437
4,623
3,382
1,202
1,184
996

Change from
Forecast(C-B)

vs. forecast

202
194
8
- 673
- 674
- 24
- 104
- 544

490

1,240

1,240

0

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

3,117

6,123

6,992

868

Earnings before depreciation
and amortization (NOI)(d)+(c)

4,032

7,664

7,988

324

Operating income
Non-operating expenses
Ordinary income
Income taxes - current
Income taxes - deferred
Profit

4,057
326
3,731
0
116
3,614

6,311
664
5,647
10
-0
5,637

7,188
653
6,535
10
- 632
7,157

876
- 10
888
-0
- 631
1,520

Balance of internal reserves

2,008

2,005

2,482

476

Distribution per unit (yen)Distribution per unit excluding
temporary factors (yen) (*)
Total number of outstanding
investment units

2,545

1,584

1,700

116

1,839

1,367

1,607

240

1,320,000

3,560,000

3,560,000－* Temporary factors: appropriation from internal reserves, factors related to gain on sale of real estate properties,
merger related expenses, etc.
* The 42nd fiscal period (ended February 28, 2023) is an irregular length of five months due to the merger with
MORI TRUST Hotel Reit, Inc. (dated March 1, 2023).

Operating revenues＜Property-related revenues＞

・ Increase in rent due to recovery in hotel performance
・ Increase in office rent due to factors suchas pregress with leasing
・ Increase in gain on sale of real estate(Shinbashi Ekimae MTR Building)

163 mn yen
30 mn yen
8 mn yen

Operating expenses＜Property-related expenses＞

・ Property and other taxes not yet accrued for the
expected (Kamiyacho)(due to unsettled property taxes, etc.)
・ Decrease in utilities expenses
・ Decrease in repair expenses
・ decrease in depreciation resulting from a review of theuseful life of the asset- 23 mn yen- 59 mn yen- 30 mn yen- 544 mn yen

Income taxes – deferred・ Transfer of deferred tax liabilities due to unification to
the reserve for reduction entry- 631 mn yen(Deferred tax liabilities (debt) → Reserve for reduction entry (equity))

Profit・ Increase due to upward revision of ordinary income
・ Increase due to change in income taxes – deferred

888 mn yen
631 mn yen

Balance of internal reserves
・ (partly) for internal reserves of gain on sale of Shinbashi

476 mn yen

7Factors of Change in Distributions per Unit

(Previous Forecast for FP Ended August 2023 vs. Actual for FP Ended August 2023)
Due to a decrease in depreciation resulting from a review of the useful life of the asset and to expecting further internal
growth in line with the recovery of the office and hotel markets, actual distributions for the 43rd FP increased significantly
compared with previous forecast as of the merger announcement and of the previous financial results announcement.
Temporary factors- Gain on sale due to second sale of Shinbashi(one-third co-ownership interest) : +376
- Expenses for the Merger: -167（yen）1,750

1,650

1,584

1,600

1,519

1,500

1,400

0
1,250

- Increase in actual rents at the Four Hotels
with Variable Rents from 78% (forecast) to89% (actual) compared with 2019

+34

+9

1,700
93

+152
Increase in
office rents etc.

209

1,607

Other

- Decrease in repairs
and interest etc.

1,350
1,300

- Gain on sale due to second sale of Shinbashi(one-third co-ownership interest) : +390
- Expenses for the Merger: -164- Internal reserves: -133

Increase in actual hotel rents

+45

217

1,450

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

Decrease indepreciation resulting
from a review of theuseful life of the asset

1,700

1,550

Temporary factors

1,310

1,367

Distribution excluding temporary factors

23/8期予想

Forecast for43rd FP

23/8期予想

Forecast for43rd FP

23/8期実績

Actual for43rd FP

Forecast as of themerger announcement(as of Nov. '22)

Forecast as of the previous
financial results announcement(as of Apr. '23)

Actual(Excluding temporary factors) Distribution: +240 yen (+17.6%)(Excluding temporary factors) Distribution: +297 yen (+22.7%)8

Forecasts for the FP
Ending February 2024 (44th FP) and August 2024 (45th FP)

9Future Outlook as a Basis for Forecasting Business Performance
Expect (1) occupancy rate improvement at Shiodome and Shin-Yokohama, (2) rent recovery at Four Hotels with Variable
Rents, and (3) profitability recovery through replacement of Shimbashi and Sendai.
FP

Before 42nd FP

Year/
Month

Before Feb. 2023 Mar.

Apr.

May

Jun.

Occupancy Rates
for Tokyo
Shiodome
Building

No. of tenants
42nd FP
41st FP(Feb. 2023)
76.5%(Sep. 2022)
18

14
66.5%

PerformanceOccupancy Rates
assumption of Four
for Shin-yokohama hotel properties with
TECH Building
Variable Rent

41st FP(Sep. 2022)

17

70.8%

18

78.0%

71.7%

Total rents vs. same
period in 2019

76.5%

85.5%
19

24

Replacing Shinbashi with Sendai

Gain on sale occurs(partly for internal
reserves)

1

Sep.

Oct.

Nov.

Dec.

Jan.
2024

Feb.

Mar.

Aug.
2024

99.2%
95.8% 95.8% 95.8%
26

25

89.1% 89.1% 89.1% 89.1%

92.7%
21

20

Aiming to maintain andimprove occupancy rate

100%
22

Aiming to maintain andimprove occupancy rate

Period for which the rents are projected

Same as above
Same as above

Vs. 2019 : 89% (Actual)

Vs. 2019 : 90% (Partly actual ・ partly forecast) Vs. 2019 : 92%(Forecast)(2) Steady recovery of Four
Hotels with Variable Rents(sale of one-third co-ownership interest)

1

Aug.
2023

Period for which the rents are fixedSame as above
Same as above

Sale of Shinbashi ‘23/2/28(Retail Facility) First sale of Shinbashi

Acquisition of
Sendai (Office)

23

Jul.

45th FP(1) Utilizing the strong asset value of these properties and leasing up vacant
space at office buildings while diversifying tenants

80.1%
18

Shangri-La
CY Tokyo / Shin-Osaka
Hilton Odawara

87.5% 90.2%

20

42nd FP(Feb. 2023)

Three-third coownershipinterest (100%)44th FP Ending Feb. 2024

43rd FP (1st FP after the Merger) Ended Aug. 2023

Two-third co-ownership interest’23/8/31
Second sale of Shinbashi(sale of one-third co-ownership interest)

2

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

One-third co-ownership interest

Sale

3 Completed

Gain on sale occurs (partly
for internal reserves)(3) Replacing Shinbashi (occupancy rate: 0%) with Sendai (occupancy rate: 99%) and
improving profitability while recording gain on sale over three fiscal periods
One-third co-ownership interest‘23/2/28
First acquisition of Sendai(acquisition of one-third co-ownership interest)2

Two-third co-ownership interest‘23/8/31
Second acquisition of Sendai(acquisition of one-third co-ownership interest)3

Three-third coownership interest(90.845%)‘24/2/29
Third acquisition of Sendai(acquisition of one-third co10
ownership interest)

Summary of Forecasts for the FP Ending February 2024 (44th FP)
and August 2024 (45th FP)
Forecast Distribution per Unit
for the Fiscal Period Ending February 2024 (44th FP)

Forecast Distribution per Unit
for the Fiscal Period Ending August 2024 (45th FP)

1,757 yen (+57 yen (+3.4%) from actual for 43rd FP)

1,602 yen (-155円 (-8.8%) from 44th FP forecast)

Forecast distribution per unit excluding temporary factors(+25 yen (+1.6%) from the 44th FP forecast excluding temporary factors)

1,577 yen (- 30 yen (-1.9%) from actual for 43rd FP)
44th FP(Ending Feb. 2024) Change from
43rd FP(Ended Aug. 2023)
43rd FP
RevisedActualActualForecast

Item (million yen)

(as of Oct. 2023)

A
11,812

B
11,952B-A

Main factors in change (million yen)
Change from44th FP(Ending Aug. 2024)
Revised
Forecast(as of Oct. 2023)
Forecast
45th FPC
10,823C-B- 1,129

10,374
1,437
4,623
3,382
1,202
1,184
996

10,580
1,372
4,304
3,661
1,253
1,394
1,013

140
205
- 64
- 318
278
51
210
16

1,240

643

- 597

587

- 55

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

6,992

6,918

- 73

7,094

175

Earnings before depreciation
and amortization (NOI)

7,988

7,931

- 56

8,111

179

Profit

7,188
653
6,535
10
- 632
7,157

7,648
701
6,946
10
－
6,935

459
47
410
0
632
- 221

6,506
794
5,712
10
－
5,701

- 1,14192- 1,234－－- 1,234

Balance of internal reserves

2,482

3,163

681

3,160

-3

Distribution per unit (yen)

1,700

1,757

57

1,602

- 155

Distribution per unit excluding
temporary factors (yen)

1,607

1,577

- 30

1,602

25

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
Income taxes - current
Income taxes - deferred

10,823
－
4,317
3,729
1,271
1,440
1,017

243
- 1,372
12
68
18
45
4

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

Forecast for 44th FP Ending Feb. 2024
(Change from 43rd FP Actual : B-A)・ Operating revenues

Increase in rent of office etc. (Increase in rent of
Shiodome and Shin-Yokohama, acquisition of Sendai etc.)
Decrease in rent due to vacation of kohnan
Decrease in operating revenues due to seasonal
fluctuations in hotel rents

+426
- 210
-9

・ Operating expenses
Increase in expenses due to acquisition of Sendai
Increase in repairs
fixed property tax, city planning tax for past years(temporary factor)
Decrease in expenses due to sale of Sendai
Absence of merger-related expenses

+96
+89
+49
- 25
- 587

・ Non-operating expenses (Increase in interest expenses)+47

・ Balance of internal reserves
Partial internal reserves of gain on sale of Shinbashi+681

Forecast for 45th FP Ending Aug. 2024
(Change from 44th FP forecast: C-B)

・ Operating revenues

Increase in rent of office etc. (Increase in rent of
Shiodome and Shin-Yokohama, acquisition of Sendai etc.)
Increase in rent of hotel
Decrease in rent due to vacation of kohnan
Absence of gain on sales (Shinbashi)

+233
+57
- 47
- 1,372

・ Operating expenses
Increase in expenses due to acquisition of Sendai
Absence of fixed property tax, city planning tax forpast years
Decrease in expenses due to sale of Sendai
・ Non-operating expenses (Increase in interest expenses)

+97
- 49
- 27
+92 11

Factors of Change in Distributions per Unit

(Actual for FP Ended August 2023 vs. Revised Forecast for FP Ending August 2024)•

Profitability will improve due to recovery of occupancy rates in Shiodome and Shin-Yokohama and replacement ofproperties in Shinbashi and Sendai, although factors such as tenant move-outs, higher repair expenses andhigher interest rates are conservatively expected to reduce revenues•

Total distributions (including temporary factors) are expected to increase compared with the previous period dueto the gain on the sale of Shinbashi
Temporary factors

（yen）
1,800

- Gain on sale due to second saleof Shinbashi (one-third coownership interest): +390- Expenses for the Merger : - 164- Internal reserves: - 133

1,750
1,700
1,650

1,700

+42

-2

- Gain on sale due to third saleof Shinbashi (one-third coownership interest) : +371
- Internal reserves: - 191

1,500

1,607

- Shiodome :+60
- Shin-Yokohama
:+12

- 13

- 69

180

Property taxes for Kamiyacho forprior years due to the determinationof taxes for building (one-time factor)

Improve profitability attributable tosecond asset replacement

1,400- Decrease in expenses due tosale of Shinbashi: +7- Increase due to acquisition of Sendai : +35

1,350
Actual for

23/8期実績
43rd FP- Gain on sale due to third saleof Shinbashi (one-third coownership interest) : +367
- Internal reserves: - 138

1,757

Decrease in rent due
to vacation of kohnan
Increase in
office rents of
Shiodome andShin-Yokohama

Temporary factors

- 60

93

1,550

0
1,300

Temporary factors- vs. YoY : +172 (Vs. Feb. 2023 FP)- Actual rents for Four Hotels with
Variable Rents are expected to be
90% of those for the same period
in 2019

+72

1,600

1,450

Decrease in operating
revenues due to seasonal
fluctuations in hotel rents

Other- Increase repairs etc. : - 28
- Partial Vacation: - 14- Interest rates are
expected to rise
: - 13- Other: - 14

Distribution excluding temporary factors

1,577

Main factors ofdifference from theforecast as of theprevious financial
resultsannouncement- Decrease in depreciation
by revising thetreatment of the useful
lives, etc.
: +145- Upward revision of hotel
rent forecast: +62- Other
:-1

1,600

229

1,371
Forecast for

Forecast for

24/2期予想
44th FP

24/2期予想
44th FP

Revised
Forecast

Forecast as of theprevious financial
results announcement(as of Apr. 2023)

12

Factors of Change in Distributions per Unit

(Revised Forecast for FP Ending February 2024 vs. Revised Forecast for FP Ending August 2024)
Despite assuming rise in interest rates and some vacancies, expecting further internal growth in line with the recovery of theoffice and hotel markets and improved profitability from the replacement of properties in Shinbashi and Sendai. The forecast
distribution (excluding temporary factors) will be at the same level as the actual results for the period ended Aug. 2023 andthe forecast for the period ending Feb. 2024.
Temporary factors- Gain on sale due to second saleof Shinbashi (one-third coownership interest): +390- Expenses for the Merger : - 164- Internal reserves: - 133

Temporary factors- Gain on sale due to third saleof Shinbashi (one-third coownership interest) : +371
- Internal reserves: - 191

（yen）
1,800

Expected recovery in hotel rents- vs. YoY : +13 (Vs. Aug. 2023 FP)

1,757

1,750
1,700
1,650

Full-year contributionof rent increase

1,700

93

180

- Shiodome- Shin-Yokohama

: +4
: +3

+40

1,600

+16

- 38

+7
Improve profitability attributable tothird asset replacement

1,550

1,607
1,500
1,450
0

- Actual rents for Four Hotels with
Variable Rents are expected to be 92%of those for the same period in 2019

Other
- Interest rates are
expected to rise
- Partial vacation etc.

1,577

- Decrease in expenses due to sale of Shinbashi : +7
- Increase due to acquisition of Sendai
: +33

1,602

Distribution excluding temporary factors
Actual for
23/8期実績
43rd FP

Forecast for
24/2期予想

Forecast for
24/8期予想

Revisedforecast

Revisedforecast

44th FP

45th FP13

External and Internal Growth Strategy

Investment Policy, Track of Asset Size Growth and External Growth, Portfolio
Summary・Pursue Asset Potential, Stability and Growth Potential with Offices and Hotels as Core Assets
・MTR will aim for growth through the Merger and an increase in asset size (about 500 billion yen) by acquiring
mostly properties developed by the sponsors.
Investment Policy

Portfolio Summary

Use of investment
OfficeCore
AssetsArea of investment
Central Tokyo

40～80%

Hotel

OfficeUp to 40%

area, ordinancedesignated cities, etc.)

Up to 30%

Return to
growth path

MTR
MTH

324.0

200
102.0

324.0

324.7

Ratio of
top 5
properties

323.9

2004年
2004
Period
3月末
Ended
年
Mar.
2004
3月末

2018年
2017

Central
Tokyo

102.0

108.5

107.7

107.6

2019年
2018

2020年
2019

2021年
2020

2022年
2021

107.6

合併前
Beforethe Merger

Other
45%
Kioicho

18% Kamiyacho
Trust Tower
11%
ON Shangri-La

Building Building Tokyo
7%
10%
8%

100
0

17%

Building

300

107.2

across JapanTokyo Shiodome

500.0

470.1

500

324.0

56%

79%

Continuous
growthListing of MTH stock

324.0

Regional
ratiosThe Merger of MTR and MTH

New MTR

400

Office30%

4%Major Cities

New growth as New MTR（billion800
yen） Listing of MTR stock

600

13%
Hotel

Other

Independent growth of MTR and MTH
Acquisition
price

Ratio byasset class

Famous tourist sites

Track of Asset Size Growth and External Growth Target

700

Retailfacility

Major cities across Japan

Hotel

Other
(Retail facility,
Residential)

1%

60% or more

Other (metropolitan

20～55%

Other

合併後
After

the Merger

短・中期目標Short/midterm target

長期目標
Long-term
targetAcquisition
price

470,156 million yen

Number ofproperties

22 properties(Note) The acquisition price is on an acquisition price basis as of the end of August 2023.
Ratio by asset class, Regional rations, Ratio of top 5 properties, are calculatedby acquisition price.

15

Summary of External Growth Strategy
Recognition of External Environment
Shared•Information on the sale of high-quality properties from an investment perspective is still limited and a situation in which it is difficult to acquire
properties persists

Office•While changes are observed in the investment attitude of some overseas investors in the context of the softening U.S. office market, demand forproperty purchases from domestic investors remains high.

•

The hotel market continues to recover, and with the expectation of possible further growth, hotel transactions by both domestic and foreign
investors are being revitalized.

Hotel

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.
Future growth may be expected, and we are actively considering hotels that can be expected to have reasonable yields.
We are also considering a wide range of projects with which improved revenue can be expected based on a change of operator or the like throughleveraging the sponsor’s hotel operation and management capabilities.
With regard to offices, in addition to regional properties that can be expected to have a reasonable yield and whose occupancy is relatively stable, in central
Tokyo, where the deterioration of properties is becoming more evident due to the impact of the large volume of new office supply, we are carefully
considering high-grade, competitive properties in favorable locations.

•

Situations of Recognition of the Market Cycle
among Real Estate Investors

Changes in Number and Amount ofReal Estate Transactions
12.6
8.6

8.7

9.1

12.4

11.5

0%

8.9

8.0

5.2

5.4

20%

40%

60%

80%

100%

Apr.2016
Apr.2017
Apr.2018

Amount (100 billion yen)Apr.2019

number326

389

385 379

327

319

356

413

407

Apr.2020
361

Apr.2021
Apr.2022

Trend in Transaction Yield
8%

1
Q1
2021

Q2

Q3

Q4

Q1
2022

Q2

Q3

Q4

Q1

Q2

2023

Source ︓ Prepared by the company based on Nikkei BP “NIKKEIREAL 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, Aug. 2023”

2

Recovery
stage

3

6%

6%

5%

5%

Expansion
stage

3%
6

Reduction
stage

7

8

Recession
stage

Source: Prepared by the Company based on Japan Real Estate
Institute: The Japanese Real Estate Investor Survey* Recognition of the market cycle (market trends) in relation to Tokyo(Marunouchi/Otemachi districts)

8%
7%

4%

5

• Hotels Specializingin Accommodation

7%

Apr.2023
4• Standard Class-A
Buildings

2%

Central Tokyo
Midousuji, Osaka
SapporoSendai
NagoyaFukuoka

4%
3%
2%

Tokyo
Osaka
SapporoFukuoka
Okinawa

2004
2006
2008
2010
2012
2014
2016
2018
2020
2022

•

2004
2006
2008
2010
2012
2014
2016
2018
2020
2022

•

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.
But the data of 2023 was current as of April.

16

Summary of Internal Growth Strategy (Office)
OfficeRecognition of External Conditions•

In central Tokyo, while there is a large volume of new office supply, due
to increased demand among tenants to improve their location or
relocate to large spaces, the increase in the vacancy rate has slowed.

•

With the relative advantages and disadvantages of difference areas andproperties becoming clearer, there is strong interest in high-grade,
competitive properties in favorable locations, and occupancy rates aretrending toward recovery.

Future Policy•

Going forward, we will pay attention to the market environment inconjunction with the large volume of new office supply, and along with
conducting tenant leasing focusing on occupancy rate, we will enhance
relations with existing tenants.

•

Based on tenant needs to improve their location or relocate to larger
spaces following the economy and society’s return to normalization
after the pandemic, we are devoting efforts to building up theoccupancy rate at properties which have some vacancies.

Condition of Office Market

Forecast for Office Rental Market

Changes in Vacancy Rate and Rent per Unit in Tokyo
Business Districts

Forecast for Trends in Office Occupancy(5 Wards of Central Tokyo)
100.0%

98.0%

96.0%

95.5%

96.1%

96.5%

96.8%

96.8%

A moderate recovery is
expected in the office market

94.0%

92.0%

90.0%

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

2023

2024

2024

2025

2025

2nd half

1st half

2nd half

1st half

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

17

Summary of Internal Growth Strategy (Hotel)
Hotel
Future Policy

Recognition of External Conditions• In light of the recovery of inbound demand and the weak yen,
ADR is increasing and RevPAR at each hotel is trending
upward.

• We will actively capture inbound demand with high room
rates via international brand sales channels, etc.
• We will bring in domestic and foreign business use and groupuse (banquets, weddings, MICE, etc.), which are expected torecover, by enhancing sales to corporations, agencies, etc.

• Compared to leisure demand, the recovery in demand islagging for domestic and foreign business use and group use(banquets, weddings, MICE, etc.).

• With the aim of maximizing GOP, we will respond to rising
operation costs by continuing to raise ADR and achieving
operational efficiency (streamlining such as staffing flexibility
within the hotel group and joint sales activities).

• Besides energy costs, attention needs to be paid to increased
operating costs due to rising prices and wage levels, theimpact of the labor shortage, etc.

• Aiming for rapid recovery to pre-pandemic (2019) rent levels
and further growth.
Condition of Hotel Market
Changes in Number of Inbound (vs.2019)
Total

Europe and North America

China

Asia (excluding China)

140%
120%
100%
80%

(per Person per Visit to Japan)(yen)
90,000122.9%

80,000107.7%

70,000

85.6%

36.4%

20%
0%

78,97750,00052,504(yen)

Rent levels before
Pandemic of COVID-19

1,087

1,000
952

965

Actual23/2期実績

Actual23/8期実績

Forecast
24/2期予想(43rd FP)

(44th FP)

(45th FP)

779

400

20,000200

10,0002018 2019 2020 2022 2023 2023
1Q

(Source) Japan National Tourism Organization (JNTO)(Note) The figures for July and August 2023 are estimates.

Scope for Rent Increases at Four Hotel Properties
with Variable Rent (Per Investment Unit/Year) (Note 1)

600

30,0000

Condition of Hotel Operating

800

60,00040,00060%
40%

Accommodation Consumption Unit
Price by International Visitors

4Q

1Q

2Q

(Source) Prepared by MTR based on International Visitor
Survey published by Japan Tourism Agency(Note) Data for 2020 Q2 to 2022 Q3 are missing due tosuspension of the survey during the pandemic.

0
Actual19/8期実績(FP ended Aug.2019)(44th FP)
(43rd FP) +24/8期予想(42nd FP) +24/2期予想+23/8期実績+20/2期実績+Actual+Forecast+Forecast+Actual(FP ended Feb.2020)18

Financial Status

Financial Status(Management Results and Loan Repayment Schedule Diversification)
Management Results for the Fiscal Period Under Review(Changes in Long-term Base Interest Rate）(Refinance)
・ MTR reduced the spread of short-term loans taken from the merger, and, amid the rise in
the base interest rate for long-term loans, we are shortening the borrowing term for suchloans and limiting increases in the costs of raising funds.
Average interest rate on
Short-term loans

Average loan term ofLong-term loans

Average interest rate

0.34％ → 0.19％

6.1 year → 5.8 year

0.43％ → 0.68％

End of Aug. 2017 (6 years ago)
End of Aug. 2022
End of Aug. 2023

（％）
1.00

0.80

（Note）Average interest rates are weighted rates applied when repayments and borrowings are undertaken.
0.60

Recognition of Financial Market and Future Policy(Recognition of Financial Market)

・ Long-term interest rates rose due to YCC correction, while short-term rates remained low
・ It is necessary to pay attention to the Bank of Japan’s policy shifting toward tapering in the
future.

(Future Policy)

0.40

0.20

・ MTR will maintain a certain proportion of short-term loans in order to limit the costs forinterest-bearing liabilities as a whole.
・ While keeping the shortening of borrowing terms for long-term loans in mind as a response to
the upward trend in interest rates, we will also raise funds at the same time in an
appropriately balanced manner with the aim of diversifying the repayment schedule.

0.00

3 years

5 years

7 years

10 years

Loan Repayment Schedule Diversification (as of Aug. 31, 2023)（mn yen）(Schedule for Repayment within One Year)

35,000

Short-term loans
Investment corporation bonds

30,000Fiscal Period Ending February 2024

Long-term loans

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

25,00020,0003,000

26,0001,000

16,500

5,000
0

3,000

17,500

Repayment Summary
Total amount
33,000 mn yen
Average loan term
3.9 year
Average interest rate
0.39%

1,000

15,00010,000Fiscal Period Ending August 2024

2,000

21,00017,50011,5007,000

15,50014,00011,0003,000
13,50015,00010,500
3,000

3,000

1,000
3,500

1,500

1,000

1,000

1,000

FP ending

FP ending

FP ending

FP ending

FP ending

FP ending

FP ending

FP ending

FP ending

FP ending

FP ending

FP ending

FP ending

FP ending

FP ending

FP ending

FP ending

FP ending

FP endingFeb.2024

Aug.2024

Feb.2025

Aug.2025

Feb.2026

Aug.2026

Feb.2027

Aug.2027

Feb.2028

Aug.2028

Feb.2029

Aug.2029

Feb.2030

Aug.2030

Feb.2031

Aug.2031

Feb.2032

Feb.2036

Feb.2037

20

Financial Status (Status of Interest-Bearing Liabilities)
Breakdown of Interest-Bearing Liabilities(as of the end of August 2023)

Interest-Bearing Liabilities
Feb. 28,
2023
Total interest-bearing liabilities

152,500

Mar. 1,
2023

MTR

225,975

Aug. 31,2023
224,500

Classification

Loans

Change vs. Mar. 1-1,475

Short-term loans

6,000

11,475

10,000-1,475Long-term loans

132,500

200,500

200,500

ー

Investment corporation bonds

14,00014,00014,000ー

LTV (Loan To Value ratio)

47.3%

48.0%

47.4%

-0.5ptShort-term interest-bearing liabilities rati

3.9%

5.1%

4.5%

-0.6ptBalance ofborrowings

LenderMizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited
MUFG Bank, Ltd.
Development Bank of Japan
Inc.
Resona Bank, Limited.

94.9%

95.5%

0.6pt

Fixed interest-bearing liabilities ratio

96.1%

94.9%

95.5%

0.6pt

The Ashikaga Bank, Ltd.

Average interest rate at end of fiscal
period and beginning of fiscal period

0.52%

0.55%

0.57%

0.02pt

0.20%

0.30%

0.19%

-0.11pt

Average duration ofinterest-bearing liabilities
Rating (JCR)

0.54%

0.56%

0.59%

0.03pt

3.5 year

3.2 year

3.1 year-0.1 year

AA (stable)

AA (stable)

AA (stable)

ー

19.2%

28,50012.7%

23,50010.5%

16,500

7.3%

8,500
6,500
5,500
4,500

3.8%
2.9%
2.4%
2.0%

4,500

2.0%

4,000

1.8%

3,500

1.6%

2,000
2,000
2,000
2,000

0.9%
0.9%
0.9%
0.9%

2,000

0.9%

1,000

0.4%

1,000

0.4%

500

0.2%

500
500
210,500
14,000224,500

0.2%
0.2%
93.8%
6.2%
100.0%The Norinchukin Bank
Mizuho Trust & Banking co.,Ltd.
Shinkin Central Bank

96.1%

Long-term loans and investment
corporation bonds

21.6%

43,000

The Bank of Fukuoka, Ltd.

Long-term interest-bearing liabilities ratio

Short-term loans

48,500Aozora Bank, Ltd.

The Nishi-Nippon City Bank,Ltd.
SBI Shinsei Bank, Limited
The 77 Bank, Ltd.
Nippon Life Insurance Company
Mitsui Sumitomo Insurance
Company, Limited
SUMITOMO LIFE INSURANCECOMPANYThe Hachijuni Bank, Ltd.
The Dai-ichi Life Insurance
Company,Limited
The Chiba Bank, Ltd
The Yamanashi Chuo Bank,Ltd

Subtotal
Investment corporation bonds
Total

(%)

Changes in LTV
Standard LTV：50％

47.5%

47.2%

47.4%

Sep 30,Mar 31,

Sep 30,Mar 31,

2020

2021

2021

2022

47.2%

47.1%

47.2%

47.2%

47.1%

47.1%

Mar 31,

Sep 30,Mar 31,

Sep 30,Mar 31,

2018

2018

2019

2019

2020

47.9%

47.3%

47.4%

Sep 30,Feb 28,

Aug 31,

2022

2023

2023

21

Accounting of Goodwill•(Positive) goodwill of around 0.6 billion yen occurred through the Merger.

•

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)

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

22

Initiatives Related to ESG

Initiatives Related to ESG
Initiatives for Owned Hotel Properties

Regular issue of Sustainability Report

 Environmental and Social Initiatives

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 issued in July 2023.

We have implemented the following initiatives with a view to limiting waste
・Changing to returnable bottles for the water containers provided in each room.
(Hilton Odawara）
・Recycling used soap as candles. (Hilton Odawara)・Switching to plastic-free or reduced-plastic products for amenities. (CYT)
・Charging fees for amenities. (CYT、CYO)
We are also engaging in activities such as the following to contribute to local
communities.
・Donating digital projectors to local elementary schools and supporting
extracurricular classes. (Hilton Odawara)
・Installing outdoor playground equipment at a daycare in a municipal hospital.
(Hilton Odawara)

・Participation in “EARTH HOUR2023” (Hilton Odawara、CYO)・Carrying out cleaning activities in the areas near properties.(Hilton Odawara、CYT、CYO)

Click here for details(Link to the report of MORI TRUST REIT)(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 to create a comfortableenvironment for them to work.
 MORI TRUST was awarded “Platinum Kurumin Certification” from the Ministryof Health, Labor and Welfare as of August 1, 2022, in recognition of its highlevel of initiatives as a “Childcare Support Company.” MORI TRUST is recognized as a company promoting women’s activities andhas acquired “Eruboshi” certification.

(1) Female employment rate(2) Female employee rate
Changing to returnable bottles
from plastic bottle (Hilton Odawara)

Participation in “EARTH HOUR2023”(Hilton Odawara)

Environmental Certification and Evaluation
 Acquisition of 2023 GRESB Real Estate Assessment (October 2023）•

GRESB Rating「3 Stars」•(3) Female management position rate(4) Rate of taking children leave(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)

GRESB Public Disclosure「A Level」

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.)24

Characteristics of MORI TRUST REIT, Inc.

25

Fundamental Principles and Characteristics of MTR

MORI TRUST REIT, Inc. (MTR)

A comprehensive REIT with offices and hotels as its core assets,
which is truly equipped with asset potential, stability and growth potential
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.

Double sponsor support

MORI TRUST CO., LTD.

Mori Trust Hotels & Resorts Co., Ltd.
26

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 78.9% 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

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

27

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)

78.9%

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 acquisition price.
The usage of a property with more than one use is determined based on the main use of the building28

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) (Note 1)

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

29

Broad Collaboration with the Mori Trust GroupWe are pursuing broad collaboration with the sponsor, with 83.9% of acquisitions involving it.
Ratio of same-boat investment is 29.2%, indicating a strong link between the sponsor group andinvestor profit.
Sponsor support by Mori Trust Group
Percentage of Acquisitions involving the sponsor
Acquisitions based on
information provided by
the sponsoror
Acquisitions based on
Joint investment withthe sponsor

Acquisitions fromthe sponsor
Acquisitions
involving
the sponsor

Percentage of Investment units owned byMori Trust Group

60.9%

29.2%

83.9%

23.0%

Investment in high-quality properties developedby MORI TRUST, a general developer

The sponsor group’s same-boat investment
ratio is high even among J-REITs, indicating astrong link with investor profit.

Recent transactions (including planned)

Acquisitions fromthe sponsor

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

(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 acquisition price30

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
Founded Mori Trust Group

2nd stage
1993–2004

Increased competitivenessas a corporate group

1990

Gotenyama Trust Tower
Completed in 1990

2000

Shiroyama Trust
Tower
Completed in 1991

Holds and operates a large numberof properties in central Tokyo,
central areas of major cities (Sendai
and Osaka) and countryside resorts.

Total number of facilities：

Buildings for lease：（As of March 31, 2023)

Developed real estate, hotel, and resort
investment business

2005

Tokyo Shiodome Building
Completed in 2005

▮ Mori Trust Group facilities

3rd stage
2005–2015

Marunouchi Trust City
Completed in 20082010

Sendai Trust City
Completed in 2010

4th stage
2016–

Respond to globalism andpromote innovation

2015

Kyobashi Trust Tower
Completed in 2014

2020

Tokyo World Gate
Completed in 2020

Tokyo World Gate Akasaka
Scheduled for partly
completion in 2024

▮ Mori Trust Group Recent Topics(1) Decided to open Hotel Indigo Nagasaki Glover Street (scheduled for winter 2024).
(2) Acquisition of RIHGA Royal Hotel Kyoto(3) Involved in investing in and renovating an office building in Manhattan (U.S.).

94

66
Hotel Indigo Nagasaki Glover Street

RIHGA Royal Hotel Kyoto

245 Park Avenue

31

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 Areas❶❷

The Tokyo EDITION,
Toranomon
CONRAD TOKYO

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

206 rooms
291 rooms

ＭＣ
ＭＣ

❸

The Westin Sendai

292 rooms

ＦＣ❹

Tokyo Marriott Hotel

249 rooms

ＦＣ❺

Courtyard by Marriott
Tokyo Station❻

Courtyard by Marriott
Shin-Osaka Station❼

Shangri-La Tokyo❽

Hotel Sunroute Plaza
Shinjuku

150 rooms
332 rooms
200 rooms
624 rooms(Properties indicated in red are those
owned by MORI TRUST REIT)⓱

Ryouri Ryokan Karaku⓲

19 rooms

Direct

MAMPEI HOTEL

109 rooms

Direct⓳Gora-Kansuiro

14 rooms

Direct43 rooms ＦＣ⓴

Karuizawa MarriottHotel

142 rooms

ＦＣ

Sheraton Okinawa
Sunmarina Resort

246 rooms ＦＣ

21

Fuji Marriott Hotel Lake
Yamanaka

105 rooms

ＦＣ⓮

Hilton Okinawa
Sesoko Resort

298 rooms ＭＣ

22

Izu Marriott Hotel
Shuzenji

128 rooms

ＦＣ

15

Hilton Odawara
Resort & Spa

163 rooms ＭＣ

23

Lake Biwa MarriottHotel

274 rooms

ＦＣ

24

Nanki-Shirahama
Marriott Hotel

182 rooms

ＦＣ

25

Courtyard by Marriott
Hakuba26

Hotel Laforet Shuzenji

212 rooms

Direct27

Laforet Club Ito Onsen
Yunoniwa

84 rooms

Direct28

Laforet Club Hakone
Gora Yunosumika

44 rooms

Direct29

Resort Hotel Laforet
Nasu

118 rooms

Direct❿Suiran, a Luxury
Collection Hotel, Kyoto

39 rooms ＦＣ⓫

IRAPH SUI, a Luxury
Collection Hotel,
Miyako Okinawa

58 rooms ＦＣ⓬

SHISUI, a Luxury
Collection Hotel, Nara⓭

DirectDirectly operated by Mori Trust GroupＦＣFranchised

ＭＣ

Under Management Contract

ＬＥ

Leased

❸
⓲⓴

ＬＥ

❻
❿
⓰
⓱

❾
⓬

29

25

❶❷❹
❺❼❽

21

23

24

ＬＥ

RIHGA Royal Hotel
Kyoto

ＭＣ

158 rooms ＭＣ

ＦＣ
ＦＣ

⓰

489 rooms❾

JW Marriott Hotel Nara

15

22

⓳ 28

26
27

⓫

⓭⓮

72 rooms ＦＣ(Source) Prepared by the Asset Management Company based on theinformation of Mori Trust Group available as of August 31, 2023
(Note) Except for the assets owned as of August 31, 2023, there isno 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.

32

Major Hotel Development Projects Underway by Mori Trust Group
Development
Capabilities

Operation &Management
Capabilities

Strategic
Investment

Multiple new hotel development projects

Major Metropolitan Areas
The Tokyo EDITION,
Ginza

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

Resort Areas
Sapporo Odori Park
Hotel development plan in

Karuizawa Shiozawa

Tokyo World Gate
Akasaka

Karuizawa Nagakura
Karuizawa Shinonome
Kanazawa Hirooka
Hida Takayama

Resort Areas

Hakuba Sakka
Hakone Nakagora
Hakone Gora
Laforet Hakone Gora Yunosumika
Ayanokan
Atami Kinomiya
Kyoto Gion

Hotel Indigo
Nagasaki Glover Street

LuxuryDestination
Network

Hotel Indigo
Nagasaki Glover Street
Okinawa Fuchaku(Source) Prepared by the Asset Management Company based on the information of Mori Trust Group available as of August 31, 2023
(Note)
Except for the assets owned as of August 31, 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.

33

Appendix

34

Acquisition of Properties Developed by a Sponsor(Additional Acquisition of Kamiyacho Trust Tower)
Acquisition 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

Property
name

Kamiyacho Trust Tower (Office area, 1.5 floors)

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

Number offloorsSeller38 stories with 3
basement levels

Month/yearof completion

MORI TRUST
CO., LTD.

Acquisition
March 1, 2023
date

Acquisition
23,700 million yen
priceAppraisalvalue

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 Kamiyacho Trust Tower (Block Name：Tokyo World Gate)

Overview of Acquired AssetUse

LTV reduced through purchase of

Floor Structure

Tokyo 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 million yen(as of October 31, 2022)• Stable, high occupancy of 99.3% (as of Aug. 31, 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.

35

Overall Status of Hotel Market•

On April 28, 2023, Japan completely lifted the requirement to present proof of vaccination or a negative test result
when entering the country.
With COVID-19 being reclassified as a “Class 5” disease on May 8, infection countermeasures are now at thediscretion of businesses and individuals, and social and economic activities are returning to normal.

•

On August 10, 2023, the government of China lifted its ban on group travel to 78 countries and regions aroundthe world, including Japan, after around 3.5 years.

•

Recently, the number of foreign visitors to Japan as a whole has recovered to about 85% of the equivalent monthin 2019.
Asia (excluding China) and the West have already surpassed 2019 levels, and China has also been progressing
well since the start of the year as it heads toward a full recovery.

Entry Restrictions etc. in Japan and China (After Mar. 2023)
Date
Mar. 1

Entry Restrictions etc. in Japan and China
JPN

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

Changes in Number of Foreign Visitors to Japan vs.
2019 (Since January 2023)
140%

107.7%

100%

85.6%

80%

JPN

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

Apr. 28

JPN

Lifting of requirement to show proof of
vaccination or negative test result for all travelers

40%

May 8

JPN

COVID-19 reclassified as “Class 5”; infection
countermeasures at individual’s discretion0%Aug. 10CHN

Lifting of ban on group travel to 78
countries/regions worldwide, including Japan

Apr. 5122.9%

120%

60%
36.4%

20%

Total

Europe and North America

China

Asia (excluding China)(Source) Japan National Tourism Organization (JNTO)(Note) The figures for July and August 2023 are estimates.

36

43rd FP Operating Results by Property (Year-on-Year Comparison)
Shangri-La Tokyo (SL)Base month for rent
Rent recording month

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

Dec.

Jan.

Feb.

Mar.

Apr.

Apr.

May

Jun.

Jul.

Aug.

13th
FP
total

2022
Mar.

147

Rent (million yen)

Difference from the minimum guaranteed
rent (million yen)

109

66

50

70

43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023)
2022
2023

86

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

Apr.

May

Jun.

Jul.

Aug.

2023

530

Mar.

135

185

125

-

-

110

175

43rd
FP
total
935

203

-

-

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

13th
FP
total

Jan. 2021 to Dec. 2021
2022
Mar.

Apr.

26

Rent (million yen)

May

26

Jun.

26

Jul.

26

Aug.

26

43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023)

26

158

43rd
FP
total

Jan. 2022 to Dec. 2022
2023
Mar.

31

*Total doesn't include other revenues.

Apr.

31

May

Jun.

31

Jul.

31

Aug.

31

189

31

*Total doesn't include other revenues.

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

MTH 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

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)00Difference from the minimum guaranteed
rent (million yen)

3

1

9

15

43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023)
2022
2023
43rd FP
avg.
Dec.
Jan.
Feb.
Mar.
Apr.
May

76.8%
27,681
21,252

74.3%
28,366
21,07079.1%
29,02322,96380.8%
33,84327,35877.3%
34,426
26,60869.2%
32,17022,27676.2%
30,93823,581

Apr.

May

Jun.

Jul.

Aug.

43rd FP
total

2023
Mar.

39

39

39

237

237

63

56

278

39
-

-

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)

MTH 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

43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023)
2022
2023
43rd FP
avg.
Dec.
Jan.
Feb.
Mar.
Apr.
May

90.6%
20,11818,23065.2%
18,016
11,74973.9%19,205
14,197

82.8%
21,073
17,45091.4%
22,207
20,30381.8%
20,656
16,89281.0%
20,35916,486

Apr.

May

Jun.

Jul.

Aug.

43rd FP
total

2023
Mar.

59

27

19
-

58

72

296

59
-

37

43rd FP Operating Results by Property (Period-on-Period Comparison)
Shangri-La Tokyo (SL)Base month for rent
Rent recording month

43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023)
2022
2023

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

Jun.

Jul.

Aug.

Oct.

Nov.

Dec.

2022

Oct.

2023

Sep.

90

Rent (million yen)

Sep.

80

84

Difference from the minimum guaranteed
rent (million yen)

77

Jan.

103

Feb.

126

14th
FP
total

Nov.

Dec.

Jan.

Feb.

Mar.

Apr.

Apr.

May

Jun.

Jul.

Aug.

2023

562

Mar.

135

185

125

-

-

110

175

43rd
FP
total
935

203

-

-

Hilton Odawara Resort & Spa (HO)MTH 14th FP (Operating period: Sep. 1, 2022 to Feb. 28, 2023)
Base period for calculation of rent
Rent recording month

Jul. 2021 to Jun. 2022
2022

2023

Sep.

Oct.

30

Rent (million yen)

Nov.

30

Dec.

30

Jan.

30

30

Feb.

30

43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023)

14th
FP
total
184

43rd
FP
total

Jan. 2022 to Dec. 2022
2023
Mar.

31

*Total doesn't include other revenues.

Apr.

31

May

Jun.

31

Jul.

31

Aug.

31

189

31

*Total doesn't include other revenues.

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

MTH 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

86.6%
25,75422,303

74.4%
21,261
15,827Feb.

14th FP
total

2023

Sep.

15

Rent (million yen)

82.4%
23,72919,54419

11

Difference from the minimum guaranteed
rent (million yen)

Jan.

19

40

42

148

43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023)
2022
2023
43rd FP
avg.
Dec.
Jan.
Feb.
Mar.
Apr.
May

76.8%
27,681
21,252

74.3%
28,366
21,07079.1%
29,02322,96380.8%
33,84327,35877.3%
34,426
26,60869.2%
32,17022,27676.2%
30,93823,581

Apr.

May

Jun.

Jul.

Aug.

43rd FP
total

2023
Mar.

39

39

39

21

21

63

56

278

39
-

-

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)

MTH 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

43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023)
2022
2023
43rd FP
avg.
Dec.
Jan.
Feb.
Mar.
Apr.
May

90.6%
20,11818,23065.2%
18,016
11,74973.9%19,205
14,197

82.8%
21,073
17,45091.4%
22,207
20,30381.8%
20,656
16,89281.0%
20,35916,486

Apr.

May

Jun.

Jul.

Aug.

43rd FP
total

2023
Mar.

59

27

19
-

58

72

296

59
-

38

Performance of Hilton Odawara Resort & Spa•

In the accommodation sector, the recovery trend in domestic leisure demand due to the reclassification of COVID19 as Class 5 was leveraged and sales at high unit prices continued, centering on holidays (spring holidays,
Golden Week, O-Bon, year-end), to raise revenues.

•

On the other hand, due to the gradual ending of the nationwide travel discount program, improving weekday
occupancy rates is an issue, and we are seeking to increase volume by attracting group guests and inboundtravelers.

•

In the restaurant and leisure sectors, due to the improvement in consumer sentiment, the number of non-staying
guests eating lunch or the dessert buffet and using the pool or natural hot spring is trending upward, which iscontributing to the hotel’s performance.
Rent for 43rd FP (Note 1)

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

Base period for
calculation of rent

Jan. 2022 to Dec. 2022
2023

Rent recording
month(Million yen)

Mar.

Apr.

May

Jun.

31

31

31

31

Rent (million yen)

600

Jul.

Aug.

31

31

Rent for 44th FP
500

Base period for
calculation of rent

2023

Rent recording
month

400

Jul. 2022 to Jun. 2023
Sep.

31

Rent (million yen)

2024
Oct.

31

Nov.

Dec.

31

31

Jan.

31

Feb.

31

300

【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 year200

Even fiscal periods (fiscal periods ended/ending in Feb.):
12 months from July in the previous year to June in the relevant year
Year
Month

100

0

Fiscal Period

Jan.

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Base period
for calculationof rent2022
1

2

12th FP3

4 5 6 7 8 9 10 11 12 1
MORI TRUST Hotel Reit, Inc.
13th FP
14th FP

2019

2020

2021

2022

3

4

5

2024

6 7 8 9 10 11 12 1
MORI TRUST REIT, Inc.
43rd FP
44th FP2

43rd FP profits (12-month average)
44th FP profits (12-month average)

Rent

Total Sales (Note2)

2023
2

Rent for 43rd FP

Rent for 44th FP

2023(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.

39

Performance of Courtyard by Marriott Tokyo Station•

The accommodation sector is maintaining its high unit-price strategy by attracting customers primarily via
Marriott.com, with high-budget foreign business travelers as the main target.
(Reference)
Share of foreign guests in the total number of guests

Apr.
2023
73.4%

May

Jun.

Jul.

Aug.

64.2%

65.5%

70.6%

68.2%

•

Going forward, the issue will be increasing occupancy rates, including attracting foreign and domestic leisureguests, while maintaining a high ADR.

•In the food and beverage sector, sales of BBQ plans utilizing terrace seating and free-flow plans led to a steadyrecovery, with average customer spend reaching a level exceeding 2019.

Change in Major Indicators (Year-on-Year Comparison)
43rd FP avg.

76.2 ％(Yen)

Occupancy rate90

30,00075

25,000

Average daily rate
(ADR)

30,938 yen

60

20,000

RevPAR

23,581 yen

45

15,00030

10,00015

5,000(Rent)

0（Difference fromminimum guaranteed rent）(Million yen)

0

Base

Dec.

month for rent
Rent recording

Mar.

Jan.
2023

Feb.

Apr.

May

Mar.
Jun.

Apr.
Jul.

May
Aug.

Jun.
Sep.

Jul.
Oct.

Aug.
Nov.

month

43rd FP of MORI TRUST 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)

43rd FP (actual)

278 mn yen
278 mn yen

43rd FP (forecast)(As of Apr. 2023)

Change(Note 1)

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

43rd FP totalRent- mn yen

240 mn yen
37 mn yen

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 percentageof quasi-co-ownership interest in the trust beneficiary interest
owned by MORI TRUST REIT.

40

Performance of Courtyard by Marriott Shin-Osaka Station•

Regarding ADR, while continuing the high unit-price strategy focusing on individual customers, proactive efforts
to attract group customers supported the occupancy rate.

•

Inbound travel is increasing for not only leisure but also business use by foreign-affiliated companies. Although
the majority of visitors are from the U.S., use from mainland China (mainly individual visitors) has been on therise recently and is now second in volume only to the U.S.
Apr.

(Reference)

2023

Share of foreign guests in the total number of guests

67.2%

May

Jun.

Jul.

Aug.

52.5%

61.3%

54.3%

43.2%

Change in Major Indicators (Year-on-Year Comparison)
43rd FP avg.
(Yen)(Million yen)Occupancy rate

81.0 ％

90

30,00075

25,000

Average daily rate
(ADR)

20,359 yen

60

20,000

RevPAR

16,486 yen

45

15,00030

10,000Rent

43rd FP total

15

5,000

0

0

Base

Dec.

Jan.
2023

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

month for rent
Rent recordingmonth

43rd FP of MORI TRUST 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)

43rd FP (actual)(Rent)（Difference fromminimum guaranteed rent）

43rd FP (forecast)(As of Apr. 2023)

296 mn yen
296 mn yen- mn yen

298 mn yen（Difference fromminimum guaranteed rent）

244 mn yen
53 mn yen

Change-1 mn yen

(Change of rent)

51 mn yen

(Rent)(Note 1) In "Rent," difference from the minimum guaranteed rent is
not included.

41

[Reference] Timing of Compensating forthe Difference from the Minimum Guaranteed Rent
2022
1 2
Fiscal period
Shangri-La

Base month for rent
(Linked to hotel total revenue)

32023
4 5 6 7 8 9 10 11 12 1 2
MORI TRUST Hotel Reit, Inc.
13th FP
14th FP

3

4

5

6

7

8

43rd FP2024
9 10 11 12 1 2 3 4 5 6 7
MORI TRUST REIT, Inc.
44th FP
45th FP

Recorded difference inguaranteed minimum rent
(11/12-month equivalent)3

46th FP

Base month for rent
(Linked to hotel profit)(93.5% quasi-co-ownership interest)
Rent *variable (monthly)

Base month for rent
(Linked to hotel profit)

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

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

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

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

Total rent for 12 months: 310,000,000 yen(Note 1)(i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi)
Recorded difference inguaranteed minimum rent
(11/12-month equivalent)

Recorded difference(1/12-month equivalent)▼ ▼Rent *variable (monthly)

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

Timing of receiving difference inguaranteed minimum rent

Criteria for applying minimum
guaranteed rent

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

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

Criteria for applying minimum
guaranteed rent
CY Tokyo

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

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

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

Criteria for applying minimum
guaranteed rent

2025
9 10 11 12 1 2(i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) (v) (vi)Rent *variable (monthly)

CY Shin-Osaka

8

Timing of receiving difference inguaranteed minimum rent

Total rent for 12 months: 460,000,000 yen

Hilton Odawara

Base period for(ii)
calculation of rent(i)(Linked to hotel profit)(50% quasi-co-ownership interest)*Rent varies each fiscal period
Rent (The monthly amount is fixed during a fiscal period.)

(iv)
(iii)

(i)

(i)

(i)

(i)

(i)

(i) (ii) (ii) (ii) (ii) (ii) (ii) (iii) (iii) (iii) (iii) (iii) (iii) (iv) (iv) (iv) (iv) (iv) (iv)

(Note 1) 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.

42

Balance Sheets (43rd FP Ended August 2023)
As of February 28,
2023

Assets

As of August 31,
2023

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

Liabilities
Current liabilities

14,729,422

16,376,466

2,413,662

4,894,721

97,513130,318
12

28

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

220,285

725,7166,000,000

10,000,000

3,000,000
15,000,000

3,000,000
42,500,000

55,631

72,178

Accounts payable – other349,524

67,657-130,928

Accrued expenses

444,375

569,22164,91523,140

Dividends payable

7,955

9,387

17,361,173

21,627,766

718

10,575

Property, plant and equipment

Income taxes payable
Accrued consumption taxes
Advances received

Buildings

16,440,150

16,051,438

Structures

30,561

29,526

Machinery and equipment

22,95536,087-165

VehiclesThousands of yen
As of August 31,2023

As of February 28,
2023

Deposits received
Total current liabilities

61,744-

814,808

1,251,425

214

38,81825,899,627

58,172,80300Investment corporation bonds

11,000,000

11,000,000

Long-term loans payable

117,500,000

158,000,000

7,698,469

12,799,156
959,194

Non-current liabilities

23,56765,405Land

109,001,394

103,417,452

Tenant leasehold and security deposits

Buildings in trust

21,422,932

44,498,437

Tenant leasehold and security deposits in trust

943,131Structures in trust

68,264140,821

Deferred tax liabilities

631,732-

Machinery and equipment in trust

59,579100,843

Other

-

9

137,773,333

182,758,360

163,672,960

240,931,164

153,990,040

153,990,040-

69,736,000

Reserve for reduction entry

1,121,637

1,376,341

Total voluntary retained earnings

1,121,637

1,376,341

Tools, furniture and fixtures

Tools, furniture and fixtures in trust

32,86052,909Land in trust

157,795,399

286,365,778

Total property, plant and equipment

304,897,665

450,758,867

Goodwill-

613,524

Software-2,232

Total non-current liabilities
Total liabilities

Intangible assets

Other

240

240

Total intangible assets

240

615,997

10,00020,000Investments and other assets
Guarantee deposits
Deferred tax assets
Long-term prepaid expenses-

875

57,897

103,802

2,815

2,815

Total investments and other assets

70,713

127,492

304,968,618

451,502,357

Deferred assets
Investment corporation bond issuancecosts
Total deferred assets
Total assets

Unitholders' equity
Unitholders' capital

Other
Total non-current assets

Net assets

68,95061,156

68,95061,156322,398,742

473,191,280

SurplusCapital surplus
Voluntary retained earnings

Unappropriated retained earnings

3,614,104

7,157,734

Total surplus

4,735,741

78,270,076

158,725,781

232,260,116

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

158,725,781

232,260,116

322,398,742

473,191,280

43

Statements of Income and Retained Earnings (43rd FP Ended August 2023)（Breakdown of Real Estate Leasing Business Income)Statements of Income
Thousands of yen
For the period
from October 1, 2022
to February 28, 2023

For the period
from March 1, 2023
to August 31, 2023

Operating revenue
Lease business revenue

5,620,653

10,113,102

207,435

261,802

Gain on sale of investment property

1,430,579

1,437,186

Total operating revenue

7,258,668

11,812,092

Other lease business revenue

Operating expenses
Expenses related to rent business

2,710,417

3,382,852

Asset management fee

275,258

749,387

Asset custody fee

10,82916,155Administrative service fees

50,842

69,609Directors' compensations

3,000

3,600

merger-related expenses

61,360250,000-

15,731

Goodwill amortization
Other operating expenses

88,983

136,137

Total operating expenses

3,200,691

4,623,473

4,057,976

7,188,618

Operating income
Non-operating income
Interest income

94

94

Reversal of dividends payable

647

918

-

89

741

1,102

291,515594,518

24,39738,941

Interest on refund
Total non-operating income

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

Thousands of yen
For the period
from March 1, 2023
to August 31, 2023

A. Rental revenues
Lease business revenue
Rent

5,321,121

9,755,149

Common charges

196,524

234,344

Land leasing revenues

103,007

123,609

Other lease business revenue

207,435

261,8025,828,088

10,374,905

Property management fees

600,789

741,024

Utilities

211,827

253,324

Property and other taxes

879,362

1,202,202

Casualty insurance

16,235

26,730

Repair expenses

62,957130,971

Depreciation and amortization

914,440996,640

Other expenses

24,80531,958

Total property-related expenses

2,710,417

3,382,852

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

3,117,671

6,992,053

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

Non-operating expenses
Interest expenses
Interest expenses
bonds

on

investment

corporation

Amortization of investment corporation bond

7,679

7,794

other

3,376

12,741

326,968

653,996

Ordinary income

Total non-operating expenses

3,731,749

6,535,724

Profit before income taxes

3,731,749

6,535,724

Income taxes - current

732

10,590

Income taxes - deferred

116,912- 632,600

Total income taxes

117,644- 622,010

Profit

3,614,104

7,157,734

Unappropriated retained earnings

3,614,104

7,157,734

44

Statement of Cash Distributions / Statements of Cash Flows(43rd FP Ended August 2023)
Statement of Cash Distribution

Ⅰ．Unappropriated retained
earnings
Ⅱ．Distribution amount(Distribution amount per unit)
Ⅲ．Voluntary retained earnings
Provision of reserve for
reduction entry
Ⅳ．Retained earnings carriedforwardStatements of Cash Flows

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

(Yen)
For the period
from March 1, 2023
to August 31, 2023

3,614,104,524

7,157,734,912

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

6,052,000,000(1,700)254,704,524

1,105,734,912－－

Thousands of yen
For the period
from October 1, 2022
to February 28, 2023
Cash flows from operating activities
Profit before income taxes
Depreciation

For the period
from March 1, 2023
to August 31, 2023

3,731,749
914,440

6,535,724
996,640

7,679
- 94

15,7317,794- 94

315,912- 19,978633,460- 32,805- 10,954-

504,944- 129,917- 172,139
5,584
5,829,179
73,655- 61,744
29,598
5,822,521- 68,973

10,675,035
94- 348,757- 881
10,325,489

14,252,880
94- 625,255- 1,495
13,626,223- 16,911- 5,405,860- 370,239- 29,341,494- 122,170
184,460- 8,391
37,476- 5,331,397- 1,334- 186,227
772,650- 7,955
19,938- 29,114,663

Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment corporation bonds

6,000,000- 8,500,000
3,000,000- 1,475,000
32,500,000- 13,000,000-

Redemption of investment corporation bonds
Payments for investment corporation bond issuance costs
Dividends paid
Net cash used in financing activities- 4,000,000- 15,045- 3,960,117- 7,475,163- 2,600- 4,069,618
13,952,781- 2,481,070
19,624,156
17,143,085- 1,535,658
17,143,085
5,663,761
21,271,188

Goodwill amortization
Amortization of investment corporation bond issuance costs
Interest income
Interest expenses
Decrease (Increase) in operating accounts receivable
Increase (Decrease) in operating accounts payable
Decrease (Increase) in consumption taxes refund receivable
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
Purchase of intangible assets
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

Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Net increase (decrease) in cash and cash equivalents due to merger
Cash and cash equivalents at end of period

45

Changes in Indicators（Unit : million yen）
Period ended
Period ended
Period ended
Period ended
Period ended
September 2021
March 2022
September 2022
February 2023
August 2023
(39th fiscal period) (40th fiscal period) (41st fiscal period) (42nd fiscal period) (43rd fiscal period)

Operating revenues

Formula

9,202

8,528

6,902

7,258

11,812

1,433

1,452

－

1,430

1,437

Operating expenses

3,638

3,486

3,474

3,200

4,623

Operating income

5,563

5,042

3,428

4,057

7,188

Ordinary income

5,205

4,685

3,043

3,731

6,535

Profit

5,041

4,537

3,331

3,614

7,157

Total distribution

4,686

4,217

3,960

3,359

6,052

Total assets

328,288

325,071

325,909322,398

473,191

Interest-bearing liabilities

155,000

154,000

156,000

152,500

224,500

Total net assets

160,106

159,957

159,071

158,725

232,260

Unrealized gain/loss

35,092

39,12444,03343,922

41,648NAV

190,512

194,864

199,144

199,288267,856 NAV = Total net assets + Unrealized gain/loss - Total distribution

Profits from real estate rental business

4,615

4,051

3,844

3,117

6,992

Depreciation and amortization

1,113

1,125

1,116

914

996

NOI

5,729

5,177

4,960

4,032

FFO

4,721

4,211

4,447

3,097

287

213

96

373

Net cash flows

5,442

4,963

4,864

3,658

7,668 NCF = NOI – Capital improvements

ROA (annualized)

3.2%

2.9%

1.9%

2.8%

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

Gain on sale of real estate

Capital improvements

NOI = Profits from real estate rental business + Depreciation andamortization
FFO = Profit + Depreciation and amortization – Gain/loss on sale of
6,717
real estate

7,988

320

ROE (annualized)

6.3%

5.7%

4.2%

5.5%

6.2% ROE = (Profit / Total net assets) / 6 × 12 * Annualized

LTV ratio

47.2%

47.4%

47.9%

47.3%

47.4% LTV = Interest-bearing liabilities / Total assets

Total number of outstanding
investment units

2,640,000 units 2,640,000 units 2,640,000 units 2,640,000 units 3,560,000 units

Distribution per unit

1,775 yen

1,597 yen

1,500 yen

1,272 yen

1,700 yen

Total net assets per unit

60,646 yen

60,590 yen

60,254 yen

60,123 yen

65,241 yen

NAV per unit

72,163 yen

73,812 yen

75,433 yen

75,488 yen

75,240 yen

FFO per unit

1,788 yen

1,595 yen

1,684 yen

1,173 yen

1,886 yen

*Various Indicators per unit and total number of outstanding investment units take into account the split of investment units (at the ratio of 1 to 2 units) on March 1, 2023, and figures prior to March 1, 2023 arerevised accordingly.

46

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

March 2023

Capital increase

Distribution
per unit

Merger with MORI TRUSTHotel Reit, Inc.

through public offering(yen)(Loan To Value ratio)

LTV
22 properties(Billion yen)

470.1

(Total acquisition price of properties owned at the end of the fiscal period)

Billion

500.0

yen

450.0
400.0

Asset size

350.0
300.0
250.0
200.0
150.0
100.0

7 properties
107.2
Billion
yen

50.0
0.0

PeriodPeriod ended
ended

PeriodPeriod ended
ended

Periodended
Period ended

Periodended
Period ended

Periodended
Period ended

PeriodPeriod ended
ended

PeriodPeriodended
ended( (4th
4th FP)FP)( (20th
20th FP)FP)( (25th
25th FP)FP)((30th
30thFP)FP)((35th
35thFP)FP)( (40th
40th FP)FP)(43rd FP)FP)
( 43rdMar.
Mar. 2004
2004

Mar.
Mar. 2012
2012

Sep.
2014
Sep. 2014

Acquired
SHIBUYA FLAG
Partial disposalof Frespo Inage

Sold Ginza MTR Building(Remaining co-owned interest: 50%)

Acquired Kohnan
Sagamihara-Nishihashimoto

Acquired
Tenjin Prime

Mar.
2017
Mar. 2017

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

Sep.
2019
Sep. 2019

Acquired
Hiroo MTR Building

Sold Ito-Yokado
Shin-Urayasu

Mar.
Mar. 2022
2022

Acquired Kamiyacho Trust Tower
Partially sold Tokyo Shiodome Building

Aug.
Aug.2023
2023

Acquired Sendai MT Building
Partially sold Shinbashi Ekimae
MTR Building

Additionally Acquired Kamiyacho Trust Tower
Partially sold Tokyo Shiodome Building

Additionally Acquired
Kamiyacho Trust Tower

Acquired Sendai MT Building
Partially sold Shinbashi Ekimae MTR Building

47

Portfolio List (As of August 31, 2023)
Use etc.

OfficeProperty Name

Location

Hotel grade

Construction
completion

Tokyo Shiodome Building(Hotel: Conrad Tokyo)

Minato Ward, Tokyo(Luxury)Jan. 2005

Kamiyacho Trust Tower

Minato Ward, Tokyo-

ON Building

Shinagawa Ward,Tokyo

Kioicho Building

Core Assets

Appraisal value(million yen)

Leasable area
(Note 1)

82,53981,60071,806.84 ㎡

Mar. 2020

51,66056,40013,479.44 ㎡-

Nov. 1990

39,90035,30020,654.60 ㎡

Chiyoda Ward, Tokyo-

Nov. 1989

34,30038,40024,748.48 ㎡

Sendai MT Building

Miyagino Ward, Sendai-

Mar. 1999

10,533

10,50026,006.82 ㎡

Osaki MT Building

Shinagawa Ward,
Tokyo

-

Jul. 1994

14,386

17,60024,495.21 ㎡

Midosuji MTR Building

Chuo Ward, Osaka-

Mar. 1999

10,17010,70015,129.16 ㎡

Hiroo MTR Building

Shibuya Ward, Tokyo-

Nov. 1992

8,100

8,420

4,946.36 ㎡

Tenjin Prime

Chuo Ward, Fukuoka-

Oct. 2008

7,050

10,1005,990.40 ㎡

Shin-Yokohama TECH Building

Kohoku Ward,
Yokohama-

Feb. 1986

6,900

8,600

18,117.03 ㎡

Sub total---

265,539

277,620

225,374.34 ㎡

Shangri-La Tokyo

Chiyoda Ward, Tokyo

LuxuryNov. 2008

49,20049,60022,755.55 ㎡

Hilton Odawara
Resort & Spa

Odawara City,
Kanagawa
Chuo Ward,
Kobe

Upper upscale

Oct. 1997 (Note 2)

7,100

7,150

25,302.83 ㎡

Upper upscale

Mar. 1989

19,00016,90072,246.86 ㎡

Chuo Ward, Tokyo

UpscaleFeb. 2014

17,017

17,0175,255.05 ㎡

Yodogawa Ward,
Osaka

UpscaleMar. 1997

17,40017,50013,881.47 ㎡

Aug. 2007

32,50032,40021,248.23 ㎡

Hotel Okura Kobe

Hotel

Courtyard by Marriott
Tokyo Station
Courtyard by Marriott
Shin-Osaka Station
Hotel Sunroute
Plaza Shinjuku

Shibuya Ward, Tokyo Upper midscale

Sub total---

142,217140,567

160,689.99 ㎡

SHIBUYA FLAG

Shibuya Ward, Tokyo-

Aug. 2009

32,04041,7005,983.86 ㎡-

Nov. 2002

11,60011,70053,393.66 ㎡-

Aug. 2005

7,460

6,620

40,283.77 ㎡-- (Note 3)

2,100

2,600

39,556.71 ㎡-

Apr. 1999

6,000

7,270

2,685.00 ㎡

Shibuya Ward, Tokyo-

Jun. 1988

3,200

4,330

4,443.03 ㎡

-

-

-

62,40074,220146,346.03 ㎡

Ito-Yokado Shonandai

OthersRetailfacility

Kohnan SagamiharaNishihashimoto
Frespo Inage

Fujisawa City,
Kanagawa
Midori Ward,
Sagamihara
Inage Ward,
Chiba

Shinbashi Ekimae MTR Building Minato Ward, Tokyo

Residential

Asset size
(million yen)
(Note1)

Park Lane Plaza
Sub total(Note) The usage of a property with more than one use is determined based on the main use of the building48

Appraisal Values of Portfolio Properties at the Fiscal Period-End(As of August 31, 2023)

End-of-period book value

Use

Acquisition
price

Name

Tokyo Shiodome Building
Kamiyacho Trust Tower（Note 1）

Cap rate
Comparison
PeriodPeriodPeriodPeriodwith the
PeriodPeriodended Feb. ended Aug. ended Feb. ended Aug. Difference
previous
ended Feb. ended Aug.
2023
2023
2023
2023
fiscal period
2023
2023

82,53974,66674,591

81,40081,600200

51,66027,86351,50732,30056,40024,100(32,300)(－)(Deducting the amount equivalent to theadditional acquisition on March 1,2023)

Discounted cash flow(DCF) method(Million yen)Appraiser
Discount
rate

Terminal
cap rate(Note 5)

3.2%

3.1%

-0.1%

3.0%

3.1%

Richi Appraisal

2.5%

2.5%

－

2.4%

2.6%

Daiwa Real Estate

OfficeON Building

39,90038,73538,69636,20035,300

-900

3.3%

3.3%

－

3.0%

3.4%

Japan Real Estate

Kioicho Building

34,30032,88532,881

38,40038,400

－

3.1%

3.1%

－

2.9%

3.3%

Daiwa Real Estate

10,533

5,297

10,6195,270

10,5005,230(5,250)

(-20)

4.5%

4.5%

－

4.3%

4.7%

Daiwa Real Estate

Sendai MT Building（Note 2）

(Deducting the amount equivalent to theadditional acquisition on August 31,2023)

Core Assets

Osaki MT Building

14,386

12,841

12,87017,80017,600

-200

3.2%

3.2%

－

2.9%

3.3%

Japan Real Estate

Midosuji MTR Building

10,170

9,839

9,819

11,10010,700

-400

3.5%

3.5%

－

3.3%

3.7%

Daiwa Real Estate

Hiroo MTR Building

8,100

8,316

8,309

8,420

8,420

－

3.6%

3.6%

－

3.4%

3.8%

Daiwa Real Estate

Tenjin Prime

7,050

6,635

6,611

10,20010,100

-100

3.6%

3.4%

-0.2%

3.2%

3.5%

Japan Real EstateShin-Yokohama TECH Building

6,900

6,595

6,550

8,440

8,600

160

4.5%

4.3%

-0.2%

4.1%

4.6%

Chuo-Nittochi

Subtotal

265,539

223,676

252,457

249,530

277,620

28,090

－

－

－

－

－

－

Shangri-La Tokyo

49,200－49,140－49,60049,600

3.2%

3.2%

－

2.9%

3.4%

Japan Real Estate

Hilton Odawara Resort & Spa

7,100

－

7,120

－

7,150

7,150

4.7%

4.7%

－

4.5%

4.8%

Richi Appraisal

Hotel

Hotel Okura Kobe

19,00015,23815,182

16,90016,900

－

4.9%

4.9%

－

4.7%

5.0%

Richi Appraisal

Courtyard by Marriott Tokyo Station

17,017－

16,980－17,017

17,017

3.7%

3.7%

－

3.4%

3.9%

Japan Real Estate

Courtyard by Marriott Shin-Osaka Station

17,400－17,352－

17,50017,500

4.2%

4.2%

－

3.9%

4.4%

Japan Real Estate
Japan Real Estate

Retail Facility

OthersHotel Sunroute Plaza Shinjuku

32,500－32,447－32,40032,400

3.5%

3.5%

－

3.3%

3.7%

Subtotal

142,217

15,238138,224

16,900140,567

123,667

－

－

－

－

－

－

SHIBUYA FLAG

32,04032,37432,352

41,10041,700

600

3.2%

3.1%

-0.1%

2.9%

3.2%

Japan Real Estate

Ito-Yokado Shonandai

11,600

9,619

9,587

11,70011,700

－

5.3%

5.3%

－

5.0%

5.5%

Japan Real Estate

Kohnan Sagamihara-Nishihashimoto

7,460

7,048

7,037

8,190

6,620

-1,570

5.4%

4.6%

-0.8%

4.0%

4.5%

Japan Real Estate- (Note 3)- (Note 3)

－

7.9%

- (Note 3)

Japan Real Estate

3.6%

3.6%

－

3.4%

3.8%

Chuo-Nittochi

3.3%

3.3%

－

3.9%

3.0%

Chuo-Nittochi

Frespo Inage（Note 3）

2,100

2,193

2,193

2,610

2,600

-10

Shinbashi Ekimae MTR Building（Note 4）6,000

11,658

5,821

14,5007,270-7,230(Deducting the amount equivalent to theapplicable sale on August 31,2023)
Residential

Direct reduction method

End-of-period appraisal value

Park Lane Plaza(7,250)
3,200

3,088

3,083

4,290

(20)
4,330

40

Subtotal

62,40065,98260,07682,39074,220-8,170

－

－

－

－

－

－

Total

470,156

304,897

450,758

348,820

492,407

143,587

－

－

－

－

－

－

Unrealized gain or loss

Total

Periodended Feb.
2023

Periodended Aug.
2023

43,922

41,648Difference-2,274(Note) Cap rate for the period ended Feb. 2023 for properties owned by former MORI TRUST Hotel Reit, Inc. (the 5 hotel
properties other than Hotel Okura Kobe), information has been indicated by referring to its fiscal period ended
February 2023.

49

Changes in Occupancy Rate
Monthly Occupancy Rates for Each Use Category (from end of previous period to end of current period)(Period ended
Feb. 2023)
Feb. 28, 2023

Use
Core
AssetsOther

OfficeMaster lease basis(Sublease basis)

Hotel
Retail Facility and Residential
Master lease basis
Total(Sublease basis)Mar. 31, 2023

97.6%
(87.1%)
100%
96.3%
97.6%
(93.1%)

98.0%(89.8%)
100%
96.3%
98.1%
(95.3%)

Apr. 30 2023

May 31, 2023

98.4%
(90.1%)
100%
96.3%
98.3%
(95.4%)

Jun. 30, 2023

98.7%
(93.6%)
100%
96.3%
98.4%
(96.6%)

98.7%(93.6%)
100%
96.2%
98.4%
(96.6%)

Jul. 31, 2023

98.6%
(95.6%)
100%
96.3%
98.4%
(97.3%)(Period ended
Aug. 2023)
Aug. 31, 2023

98.7%
(95.8%)
100%
98.1%
98.9%
(97.9%)

Property-Related Occupancy Rate (Most Recent 5 Fiscal Periods)
Use

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

NameTokyo Shiodome Building
Kamiyacho Trust Tower

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

February 28, 2023
(End of 42nd fiscal period)

August 31, 2023
(End of 43rd fiscal period)

100%
89.7%
(89.7%)

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

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

－

－

－

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

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

100%(95.6%)
100%(96.4%)
100.0%

100%(70.8%)
100%(99.3%)
100%
97.8%(95.6%)
100.0%(99.9%)
100%(88.3%)
100%(100%)
92.4%

100%(95.8%)
100%(99.3%)
100%
97.9%(97.4%)
100%(99.1%)
100%(85.2%)
100%(100%)
92.4%

100%（Note 2）

ON Building
Kioicho Building（Note 3）

Sendai MT Building（Note 4）

Osaki MT Building（Note 5）

Midosuji MTR Building（Note 6）

Hiroo MTR Building（Note 7）100%

Tenjin Prime

100%

100%

100%

100%

100%

Shin-Yokohama TECH Building

100%

59.9%

71.7%

78.0%

89.1%

98.4%

95.4%

96.6%

97.6%

98.7%

Subtotal（Note 8）
Hotel

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

Retail Facility
Residential(80.6%)(81.8%)(84.6%)(87.1%)(95.8%)

Subtotal

100%

100%

100%

100%

100%

SHIBUYA FLAG

92.2%

100%

100%

100%

100%

Ito-Yokado Shonandai

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%

0%

0%

0%

0%

Park Lane Plaza

100%

100%

96.8%

96.7%

96.7%

99.7%
99.1%
(91.9%)

94.7%
96.0%
(90.5%)

94.6%
96.5%
(91.6%)

96.3%
97.6%
(93.1%)

98.1%
98.9%
(97.9%)

Subtotal
Total（Note 8）

50

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

Location

ON Building

Kioicho Building

Sendai MT Building

Shinagawa Ward, Tokyo Chiyoda Ward, Tokyo

Osaki MT Building

Minato Ward, Tokyo

Minato Ward, Tokyo

January, 2005

March, 2020

November 1990

November 1989

Acquisition date

April 2010

July 2021, and otherAugust 2008

October 2014

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

82,539 million yen
74,591 million yen

51,660 million yen
51,507 million yen

39,900 million yen
38,696 million yen

34,300 million yen
32,881 million yen

10,533 million yen
10,619 million yen

14,386 million yen
12,870 million yen

81,600 million yen
191,394.06㎡(Note 1)
6.0%

56,400 million yen
196,037.12㎡(Note 2)
6.5%

35,300 million yen
32,812.27㎡
8.0%

38,400 million yen
63,535.55㎡(Note 3)
11.3%

10,500 million yen
42,941.53 ㎡(Note 4)4.9%

17,600 million yen
26,980.68㎡(Note 5)
11.5%

Rental revenues (thousand yen)

Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended
Feb. 2023
Aug. 2023
Feb. 2023
Aug. 2023
Feb. 2023
Aug. 2023
Feb. 2023
Aug. 2023
Feb. 2023
Aug. 2023
Feb. 2023
Aug. 2023

Construction completion

July 1994(Renovated in 2008)

March 1999

February 2023, and other March 2005, and other

Rental revenues

860,556 1,421,864

454,407944,041

860,284 1,047,120

Rent
Common charges

860,556 1,421,864－－

442,196－919,288－773,824
7,045

Land leasing revenues

Miyagino Ward, Sendai Shinagawa Ward, Tokyo

945,185
6,585

1,063

216,925

287,614334,926904－

192,810－287,164－

334,374
－

－

－

－

－

－

－

－

－

－

－

Other rental revenues
Property-related expenses
Property and other taxes－
729,037
345,978－
671,458
366,253

12,210134,496
9,525

24,753
283,243
9,984

79,414
494,669
90,246

95,348494,615
92,542

159
3,452
－

24,11479,604－449
92,80939,381

552
94,45740,854

Property taxes

345,978

Other taxes
Overhead expenses－
222,531366,253－

9,525－

88,921
1,325

91,437
1,104

－
－

－
－

39,381－40,854－

227,81753,788117,231

279,147

337,008300

58,343

3,048

10,073211,037

210,986

36,907

77,988

206,723

246,352

148

25,108

930

2,955

－

－

15,89237,091

54,19873,139146

30,592

－

－

2,894

3,525

233

541

1,315

1,599

2

510

722

880

Property management fees
Utilities
Casualty insurance
Trust fees

9,984 Undisclosed Undisclosed(Note 7)－ (Note 7)

－

－

625

1,251

666

800

2

451

－

－

Other expenses
Depreciation and amortization

8,600
160,526

13,30577,387

129
71,183357
156,026

16,243
125,275

15,11565,064

－
3,152

1,680
21,261

1,395
50,3796,237
43,529Profits and losses from real estate rental business

131,519

750,405

319,910

660,798

365,614552,505▲ 2,388

137,320

194,804

240,469

Earnings before depreciation and amortization (NOI)

292,046827,792
2.0%

NOI yield (Note 8)

391,094
816,825
3.2%

415,797

559,009494,247
621,570
3.1%

490,889
617,5703.6%

763
158,582
6.0%(Note) The results for the fiscal period ended February 2023 are for five months. For properties formerly owned by MORI TRUST Hotel Reit, Inc. (the 5 hotel properties other than Hotel Okura Kobe),
information has been indicated by referring to its fiscal period ended February 2023 (results for 6 months).

245,184
283,999
3.9%

51

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

Hotel

Midosuji MTR Building

Hiroo MTR Building

Tenjin Prime

Shin-Yokohama TECH
Building

Chuo Ward, Osaka

Shibuya Ward, Tokyo

Chuo Ward, Fukuoka

Kohoku Ward, Yokohama

Chiyoda Ward, Tokyo

Odawara City, Kanagawa

November 2008

October 1997
(Renovated in 2004)

Shangri-La Tokyo

Hilton Odawara Resort & Spa

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

March 2023

March 2023

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

10,170 million yen
9,819 million yen
10,700 million yen
15,129.16㎡
2.1%

8,100 million yen
8,309 million yen
8,420 million yen
6,709.80㎡
7.3%

7,050 million yen
6,611 million yen
10,100 million yen
7,722.04㎡
6.4%

6,900 million yen
6,550 million yen

49,200 million yen
49,140 million yen

7,100 million yen
7,120 million yen

8,600 million yen
25,187.22㎡
8.7%

49,600 million yen
180,335.11㎡(Note 9)9.0%

7,150 million yen
50,605.67㎡(Note 10)
12.6%

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 Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended
Feb. 2023
Aug. 2023
Feb. 2023
Aug. 2023
Feb. 2023
Aug. 2023
Feb. 2023
Feb. 2023
Aug. 2023
Aug. 2023
Feb. 2023
Aug. 2023

254,587
228,090
5,620－
20,875
138,212
42,17942,179－57,778307,866
283,838
6,745－
17,282
123,938
45,20545,205－58,452

144,491
119,470
15,340－9,680
41,899
11,962
11,840122
16,358158,242
134,388
18,408－5,445
36,817
12,38812,286102
11,659210,074
180,834
16,398－
12,841
82,871
28,921
28,921－
27,447

255,236
218,716
20,061－
16,457
84,61231,08431,084－
29,142

235,381
205,068－－
30,312
170,056
30,06630,066－80,983

316,259
290,043－－
26,215
183,899
31,01031,010－98,293562,609562,609－－－
246,532
134,012
134,012－1,929

935,123
935,123－－－
205,434
135,579
135,579－
2,813

187,218
184,986－－
2,231
99,14441,94541,945－
3,111

191,997
189,742－－
2,255
121,846
41,06741,067－25,471

24,78022,881507

27,167
17,919
618

4,181
8,616
209

5,034
2,281
255

6,524
14,607186

7,464
14,599227

40,58435,547732

54,89830,205
893

－
－
1,729

－
－
1,756

－
－
2,009

－
－
2,039

416
9,191
38,254
116,374500
12,246
20,280183,927333
3,016
13,578102,591

400
3,687
12,769121,425

625
5,503
26,502
127,202750
6,101
24,384
170,624－
4,118
59,00665,324－
12,29654,595
132,360

200－
110,591
316,076200
856
67,041
729,689150
952
54,08788,074150
23,28155,307
70,151

154,629204,208
4.0%

116,170
134,194
3.3%

153,705
195,009
5.5%

124,331
186,955
5.4%

426,667
796,731
3.2%(Note) The results for the fiscal period ended February 2023 are for five months. For properties formerly owned by MORI TRUST Hotel Reit, Inc. (the 5 hotel properties other than Hotel Okura Kobe),
information has been indicated by referring to its fiscal period ended February 2023 (results for 6 months).

142,161
125,458
3.5%

52

Portfolio Summary and Breakdown of Property-Related Revenues/Expenses (3)HotelCourtyard by Marriott Courtyard by Marriott Hotel Sunroute Plaza
Shin-Osaka Station
Tokyo Station
Shinjuku

Hotel Okura Kobe

Location

SHIBUYA FLAG

Ito-Yokado Shonandai

Chuo Ward, Tokyo

Yodogawa Ward, Osaka

Shibuya Ward, Tokyo

Shibuya Ward, Tokyo

Fujisawa City, Kanagawa

March 1989
(Expanded March 1995)

February 2014

March 1997
(Renovated in 2015)

August 2007

August 2009

November 2002

Acquisition date

September 2006

March 2023

March 2023

March 2023

April 2013

March 2003

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

19,000 million yen
15,182 million yen
16,900 million yen
72,246.86㎡
17.8%

32,500 million yen
32,447 million yen
32,400 million yen
20,451.25㎡
5.1%

32,040 million yen
32,352 million yen
41,700 million yen
7,766.49㎡
11.9%

11,600 million yen
9,587 million yen
11,700 million yen
53,393.66㎡
14.0%

Construction completion

Rental revenues (thousand yen)

Chuo Ward, Kobe

Retail Facility

17,017 million yen
17,400 million yen
16,980 million yen
17,352 million yen
17,017 million yen
17,500 million yen
51,242.93㎡(Note 11) 17,002.28㎡(Note 12)
7.1%
4.4%

Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended
Feb. 2023
Aug. 2023
Feb. 2023
Aug. 2023
Feb. 2023
Aug. 2023
Feb. 2023
Aug. 2023
Feb. 2023
Aug. 2023
Feb. 2023
Aug. 2023

Rental revenues
Rent
Common charges
Land leasing revenues
Other rental revenues
Property-related expenses
Property and other taxes

524,794
524,794－－－
262,734
71,494

629,178
629,178－－－
192,677
73,594

169,829
169,829－－－
70,21822,646278,669
278,567－－101
61,93423,072

157,682
157,682－－－
74,050
14,112

296,436
296,436－－－
77,702
14,564653,416652,336－－
1,080
178,542
68,721

653,716652,336－－
1,380
126,352
72,784

312,542
312,500－－
42
92,01339,094

375,045
375,000－－45
92,43738,987

Property taxes

71,49473,594

22,646

23,072

14,112

14,56468,721

38,987－25,595
－

－
4,121
－

－
1,651
－

－
5,515
－

－
4,125
－

－
1,380
－

72,784 Undisclosed Undisclosed(Note 7)－ (Note 7)
1,408－

39,094－
22,668
－

－
2,232
1,350

－
16,223
1,340

Other taxes
Overhead expenses
Property management fees
Utilities
Casualty insurance
Trust fees

－

－

－

－

－

－

－

－

－

－

6,567

8,008

421

427

815

828

1,180

1,199

882

1,075

1,666

2,000

238

238

200

200

200

200

－

－

Other expenses
Depreciation and amortization

14,434
168,571

15,587
93,4883,462
43,450985
37,2094,500
54,421

3,096
59,012－
108,440

952,159－50,687

13,80837,226

Profits and losses from real estate rental business

262,060

436,501

99,610216,735

83,632

218,733

474,874

527,363

220,528

282,608

Earnings before depreciation and amortization (NOI)

430,632
529,989
5.6%

NOI yield (Note 8)

143,061
253,9443.0%

138,053
277,746
3.2%

583,315
579,5223.6%

535,714647,570

556,652
669,732
4.2%(Note) The results for the fiscal period ended February 2023 are for five months. For properties formerly owned by MORI TRUST Hotel Reit, Inc. (the 5 hotel properties other than Hotel Okura Kobe),
information has been indicated by referring to its fiscal period ended February 2023 (results for 6 months).

271,215
319,834
5.5%

53

Portfolio Summary and Breakdown of Property-Related Revenues/Expenses (4)Kohnan SagamiharaNishihashimoto

Retail Facility

Residential

Shinbashi Ekimae
MTR Building

Frespo Inage

Park Lane Plaza

Total

Midori Ward, Sagamihara

Inage Ward, Chiba

Minato Ward, Tokyo

Shibuya Ward, Tokyo－

Construction completion

August 2005－

April 1999

June 1988－

Acquisition date

October 2012

March 2002

April 2007

December 2004－

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

7,460 million yen
7,037 million yen
6,620 million yen
40,283.77㎡
13.5%

2,100 million yen
2,193 million yen
2,600 million yen

6,000 million yen
5,821 million yen
7,270 million yen
7,820.45㎡(Note 14)12.2%

3,200 million yen
3,083 million yen
4,330 million yen
5,246.78㎡
14.9%

470,156 million yen
450,758 million yen
492,407 million yen－
5.0% (Note15)

Location

Rental revenues (thousand yen)

（39,556.71㎡）(Note 13)－

Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended Period ended
Feb. 2023
Aug. 2023
Feb. 2023
Feb. 2023
Aug. 2023
Aug. 2023
Feb. 2023
Aug. 2023
Feb. 2023
Aug. 2023

107,390 7,558,844 10,374,905

Rental revenues

103,007

123,609－－90,656

Rent
Common charges
Land leasing revenues
Other rental revenues
Property-related expenses
Property and other taxes
Property taxes－－
103,007
－
7,894
7,269
7,269

－
－
123,609
－
8,020
7,270
7,270

－
－
－
－
58,31335,60935,609－－－－56,89429,73729,737

81,626
7,536
－
1,493
34,086
7,762
7,762

97,191 7,048,565 9,755,149
9,043
196,524
234,344－
103,007
123,609
1,155
210,747
261,80230,786 3,378,916 3,382,852
8,098 1,160,800 1,202,202
8,098 1,159,349 1,199,044

－
625

－
750

－
7,034

－
10,408－15,245－
14,995

Property management fees
Utilities

－
－

－
－

1,311
3,819

2,178
5,160

8,527
1,737

9,969
1,235

Casualty insurance
Trust fees
Other expenses
Depreciation and amortization

－
625
－
－

－
750
－
－

183
－
1,720
15,668152－
2,917
16,748145－
4,833
11,07995,112

115,588-58,313-56,894

56,569-42,644－-40,146

Other taxes
Overhead expenses

Undisclosed Undisclosed(Note 7)(Note 7)

Profits and losses from real estate rental business

169,246

Earnings before depreciation and amortization (NOI)

190,430
229,285
6.1%

NOI yield (Note 8)

218,554

95,112
115,588
11.0%

1,451
3,157
932,683 1,184,009
600,789
211,827

177
22,390
－
7,324
3,612
90,352
7,692 1,285,431

741,024
253,324

26,730
9,791
153,138
996,640

76,603 4,179,928 6,992,053

67,64984,296 5,465,360 7,988,694
5.3%
3.4%

(Note) The results for the fiscal period ended February 2023 are for five months. For properties formerly owned by MORI TRUST Hotel Reit, Inc. (the 5 hotel properties other than Hotel Okura Kobe),
information has been indicated by referring to its fiscal period ended February 2023 (results for 6 months).
Totals for the fiscal period ended February 2023 were calculated based on the following formula.
Total for MTR’s fiscal period ended February 2023 (results for 5 months) + Total for former MORI TRUST Hotel Reit, Inc.’s fiscal period ended February 2023 (results for 6 months)

54

Overview of Lease Contracts
Use etc.

Occupancy
Rate

Tokyo Shiodome Building(office/retail part)
Tokyo Shiodome Building(hotel part：Conrad Tokyo)

Total
numberof tenants

100%(95.8%)

1(25)

Kamiyacho Trust Tower

100%(99.3%)

Property Name

OfficeCore Assets
Hotel

OthersRetailfacility

LesseeMaster lease contract

Linked to sublease rent

MORI TRUST CO., LTD.

Master lease contract

Fixed rent

MORI TRUST CO., LTD.

1
(7)

Master lease contract

Linked to rents
for joint management units

MORI TRUST CO., LTD.

ON Building

100%

1

Leasing directly to tenants-

Kobe Steel, Ltd.

Kioicho Building (office part)
Kioicho Building (residencial part)

97.9%(97.4%)

41(76)

Leasing directly to tenants
Master lease contract

pass-throughMitsui Fudosan Residential Lease Co.,Ltd.

Sendai MT Building

100%(99.1%)

1(45)

Master lease contract

Linked to sublease rent

MORI TRUST CO., LTD.

Osaki MT Building

100%(85.2%)

1(16)

Master lease contract

Linked to sublease rent

MORI TRUST CO., LTD.

Midosuji MTR Building

100%(100%)

1(32)

Master lease contract

pass-throughTokyo Capital Management Co.,Ltd.

Hiroo MTR Building

92.4%

8

Leasing directly to tenants--

Tenjin Prime

100%

13

Leasing directly to tenants--

Shin-Yokohama TECH Building

89.1%

20

Leasing directly to tenants--

Shangri-La Tokyo

100%

1

Master lease contract

Linked to hotel total revenue

MORI TRUST CO., LTD.

Hilton Odawara Resort & Spa

100%

1

Leasing directly to tenants

Linked to hotel profit

Mt & Hilton Hotel Co.,Ltd.

Hotel Okura Kobe

100%

1

Leasing directly to tenants

Fixed rent (Note2)

Hotel Okura Kobe

Courtyard by Marriott Tokyo Station

100%

1

Master lease contract

Linked to hotel profit

MORI TRUST CO., LTD.

Courtyard by Marriott Shin-Osaka Station

100%

1

Master lease contract

Linked to hotel profit

MORI TRUST CO., LTD.

Hotel Sunroute Plaza Shinjuku

100%

1

Leasing directly to tenants

Fixed rent

Sotetsu Hotel Management CO., LTD.

SHIBUYA FLAG

100%

3

Leasing directly to tenants-

H&M etc.

Ito-Yokado Shonandai

100%

1

Master lease contract

Fixed rent

Ito-Yokado Co., Ltd.

Kohnan Sagamihara-Nishihashimoto*

100%

1

Master lease contract

Fixed rent

KOHNAN SHOJI CO., LTD.

Frespo Inage (only land)

100%

1

Leasing directly to tenants-

Daiwa Lease Co., Ltd.

-

-

-

-

-

96.7%

17

Leasing directly to tenants--

Shinbashi Ekimae MTR Building
Residential

Type of Lease Contracts

Park Lane Plaza* Fixed-term building lease agreement of Kohnan Sagamihara-Nishihashimoto expired on September 27, 2023. Accordingly, the property name was changed to "Hashimoto MTR Building".

Classification of lease contract type
Linked to sublease rent A master lease form in which MTR receive an amount calculated by multiplying sublease rent (Note 3) by a certain rate
Office/otherMaster lease contract

Linked to rents for
A master lease form in which MTR receive an amount calculated by multiplying rent (Note 4) generated from joint management units
joint management units (Note 5) by a certain rate
A master lease form in which MTR receive an amount equal to sublease rentpass-throughFixed rent

Hotel

Master lease contract/
Leasing directly to tenants

Linked to hotel
total revenue (profit)
Fixed rent

A master lease form in which MTR receive fixed rent from a lessee regardless of sublease rent
A form of contract in which MTR receive an amount calculated by multiplying total revenue etc. of hotel (or profit etc. of hotel) which
MTR manages by a certain rate
A form of contract in which MTR receive fixed rent regardless of total revenue etc. of hotel (or profit etc. of hotel) which MTR
manages

55

Details of Hotel Property Lease Contracts
Property nameShangri-La Tokyo

Hilton Odawara
Resort & Spa

Hotel Okura Kobe

Courtyard by Marriott
Tokyo Station

Courtyard by Marriott
Shin-Osaka Station

Hotel Sunroute Plaza
Shinjuku

Hotel grade

LuxuryUpper Upscale

Upper Upscale

UpscaleUpscaleUpper midscale

200

163

468

150

332

624

Mori Trust--Mori TrustMori TrustMori Trust

No. of guestrooms(Note 1)Developer

LeasedMC (Note 2)

LeasedFC (Note 3)

FC (Note 3)

LeasedHotel operator

Shangri-La Hotels Japan

Hilton Worldwide Manage

Hotel Okura Kobe

MORI TRUST HOTELS &RESORTS CO., LTD.

MORI TRUST HOTELS &RESORTS CO., LTD.

Sotetsu Hotel Management

Contract period

From Sep. 1, 2016
to Nov. 30, 2033

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

From Apr. 1, 2022
to Mar. 31, 2032

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

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

None

Possible by consultation
every 5 years

Possible by consultation
every 5 years

None

TenantMori Trust(Master Lessee)

MT & Hilton Hotel

Hotel Okura Kobe

Mori 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.)

Fixed (Note)

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

Profit-ProfitProfitLease agreements

Hotel operation format

Rent

Rent

Rent

Rent

variablerentvariablerent

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

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

Fixed annual rent
1,098,453,780 yen(Note)

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

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 nextyear.
Minimum annual guaranteed rent showsRent

variablerent
Minimum annual guaranteed rent

Fixed annual rent
1,304,673,360 yen

460,000,000 yen (Note)

Profit(Note) Along with fixed annual rent,
the total amount of property tax
and city planning tax equivalentamount and casualty insurance
equivalent amount is paid asvariable rent.

Fixed
-

Rent

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

-

the figures equivalent to 93.5% quasi-coownership interest in the trust beneficiaryinterest owned by MTR.

(Note1) The number of guestrooms for Shangri-La Tokyo indicates guestrooms available for sale, while for other properties, it indicates the total number of guestrooms at each hotel(in some cases, this includes the share of other co-owners or quasi-co-owners).
(Note2) This signifies a management contract, indicating a format whereby hotel operation is outsourced by Mori Trust Group to a brand operator.
(Note3) This signifies a franchise, indicating a format whereby Mori Trust Group operates a hotel by itself by being lent brand usage rights from a given brand.

56

Interest-Bearing Liabilities (As of August 31, 2023)▮ Short-Term Loans
LenderSumitomo Mitsui Banking Corporation
Resona Bank, Limited.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Resona Bank, Limited.
Mizuho Bank, Ltd.

Total

Averageinterest rate

2,500
500
2,000
2,000
1,500
1,000
500
10,000

0.19%
0.19%
0.19%
0.20%
0.20%
ー
0.20%

Floating

Mizuho Bank, Ltd.

Outstanding balance at
end of period

Draw down date Repayment date

Oct. 7,2022
Oct. 14,2022
Apr. 7,2023
Aug. 31,2023
Aug. 31,2023
Aug. 31,2023
Aug. 31,2023

Oct. 6,2023
Oct. 13,2023
Mar. 29,2024
Aug. 30,2024
Aug. 30,2024
Aug. 30,2024
Aug. 30,2024

Development Bank of Japan Inc.
Resona Bank, Limited.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Resona Bank, Limited.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Development Bank of Japan Inc.
Aozora Bank, Ltd.
Shinkin Central Bank
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
The Bank of Fukuoka, Ltd.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Development Bank of Japan Inc.
The Nishi-Nippon City Bank, Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Hachijuni Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Mizuho Trust & Banking co., Ltd.
Mizuho Trust & Banking co., Ltd.
Shinkin Central Bank
Shinkin Central Bank
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Resona Bank, Limited.

Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited

The Yamanashi Chuo Bank,Ltd
Development Bank of Japan Inc.

Averageinterest rate

500
1,000
2,000
1,000
2,000
1,000
1,500
1,000
3,000
2,000
1,500
2,000
2,000
3,000
2,000
1,000
3,000
1,000
5,000
1,000
3,000
2,000
1,000
3,000
1,000
3,000
1,500
500
1,500
500
3,000
1,000
1,000
1,000
500
1,000
2,500
4,000
1,000
3,000
3,000
2,000
500
1,000
1,000
500
500
500

0.54%
0.46%
0.64%
0.30%
0.64%
0.30%
0.64%
0.29%
0.17%
0.33%
0.64%
0.54%
0.57%
0.27%
0.36%
0.36%
0.56%
0.56%
0.36%
0.45%
0.52%
0.45%
0.45%
0.29%
0.30%
0.53%
0.53%
0.43%
0.56%
0.56%
0.32%
0.65%
0.65%
0.34%
0.65%
0.64%
0.33%
0.37%
0.32%
0.46%
0.68%
0.68%
0.30%
0.30%
0.68%
0.44%
0.30%
0.30%

Draw down date Repayment date

Sep. 29,2017
Oct. 18,2016
Nov. 30,2016
Nov. 30,2020Nov. 30,2016
Nov. 30,2020Nov. 30,2016
Nov. 30,2020Aug. 30,2019Nov. 29,2019Feb. 28,2017Mar. 11,2016Mar. 19,2018
Oct. 9,2020
Apr. 11,2019
Apr. 11,2019
Apr. 24,2018May. 31,2018
Nov. 29,2019Aug. 31,2021
Nov. 30,2021
Aug. 31,2021
Aug. 31,2021
Oct. 9,2020
Apr. 9,2021
Nov. 30,2021
Nov. 30,2021
Dec. 26,2019Jan. 19,2018Jan. 19,2018
Feb. 28,2020Feb. 28,2018
Feb. 28,2018
Feb. 28,2020Feb. 28,2018Mar. 19,2018
Apr. 9,2021
Apr. 13,2020
Apr. 13,2021
Apr. 24,2019Aug. 31,2018
Aug. 31,2022
Sep. 2,2019Sep. 2,2019Aug. 31,2022
Aug. 31,2023
Sep. 2,2019Sep. 2,2019Sep. 29,2023
Oct. 18,2023
Nov. 30,2023
Nov. 30,2023
Nov. 30,2023
Nov. 30,2023
Nov. 30,2023
Nov. 30,2023
Feb. 29,2024
Feb. 29,2024
Feb. 29,2024
Mar. 11,2024
Mar. 19,2024
Apr. 9,2024
Apr. 11,2024
Apr. 11,2024
Apr. 24,2024
May. 31,2024
Aug. 30,2024
Aug. 30,2024
Aug. 30,2024
Aug. 30,2024
Aug. 30,2024
Oct. 9,2024
Oct. 9,2024
Nov. 29,2024
Nov. 29,2024
Dec. 26,2024
Jan. 17,2025
Jan. 17,2025
Feb. 28,2025
Feb. 28,2025
Feb. 28,2025
Feb. 28,2025
Feb. 28,2025
Mar. 19,2025
Apr. 9,2025
Apr. 11,2025
Apr. 11,2025
Apr. 24,2025
Aug. 29,2025
Aug. 29,2025
Aug. 29,2025
Aug. 29,2025
Aug. 29,2025
Aug. 29,2025
Aug. 29,2025
Aug. 29,2025

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

Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Resona Bank, Limited.
The Bank of Fukuoka, Ltd.
Mizuho Bank, Ltd.
The Bank of Fukuoka, Ltd.
The Norinchukin Bank
Sumitomo Mitsui Trust Bank, Limited
The Ashikaga Bank, Ltd.
Aozora Bank, Ltd.
SUMITOMO LIFE INSURANCE COMPANY

The Bank of Fukuoka, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Trust Bank, Limited
Resona Bank, Limited.
Resona Bank, Limited.
The Norinchukin Bank
The Nishi-Nippon City Bank, Ltd.
SUMITOMO LIFE INSURANCE COMPANY
The Dai-ichi Life Insurance Company,Limited

Development Bank of Japan Inc.
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited

0.68%
0.83%
0.83%
0.43%
0.42%
0.47%
0.50%
0.52%
0.41%
0.50%
0.63%
0.62%
0.62%
0.41%
0.53%
0.52%
0.36%
0.39%
0.72%
0.75%
0.75%
0.75%
0.39%
0.70%
0.55%
0.36%
0.33%
0.41%
0.31%
0.40%
0.39%
0.50%
0.42%
0.40%
0.56%
0.56%
0.50%
0.51%
0.38%
0.59%
0.63%
0.45%
0.59%
0.55%
0.84%
0.63%
0.84%
ー(Note1)
0.48%
0.38%
0.48%
0.38%
0.56%
0.43%
0.74%
0.50%
0.63%
0.47%
0.55%
0.99%
0.99%

Aug. 31,2022
Nov. 30,2022
Nov. 30,2022
Jan. 19,2022
Jan. 31,2020Feb. 28,2022
Mar. 1,2023
Feb. 28,2019Feb. 26,2021
Aug. 31,2022
Mar. 1,2023
Mar. 1,2023
Mar. 1,2023
Mar. 12,2021
Apr. 21,2023
Apr. 24,2023
Sep. 30,2020
Apr. 22,2021
Apr. 24,2018
Aug. 31,2022
Aug. 31,2022
Aug. 31,2022
May. 31,2021
Mar. 1,2023
Aug. 31,2022
Sep. 2,2019Aug. 30,2019Aug. 31,2020Aug. 30,2019
Apr. 23,2021
Sep. 30,2020Feb. 28,2023
Dec. 24,2021
Dec. 25,2020Dec. 26,2019Dec. 26,2019Jan. 19,2022
Jan. 31,2022
Feb. 28,2020Aug. 31,2022
Apr. 22,2022
Dec. 24,2021
Dec. 26,2019Jan. 31,2022
Mar. 1,2023
Aug. 31,2022
Feb. 28,2023
Aug. 31,2023
Aug. 31,2020Aug. 30,2019Aug. 31,2020Aug. 30,2019Feb. 28,2022
Mar. 12,2020Sep. 30,2022
Apr. 13,2021
Dec. 26,2019Jan. 19,2021
Feb. 26,2021
Jan. 19,2023
Jan. 19,2023

Aug. 29,2025
Nov. 28,2025
Nov. 28,2025
Jan. 19,2026
Jan. 30,2026
Feb. 27,2026
Feb. 27,2026
Feb. 27,2026
Feb. 27,2026
Feb. 27,2026
Feb. 27,2026
Feb. 27,2026
Feb. 27,2026
Mar. 12,2026
Mar. 31,2026
Mar. 31,2026
Mar. 31,2026
Apr. 22,2026
Apr. 24,2026
May. 29,2026
May. 29,2026
May. 29,2026
May. 29,2026
Aug. 31,2026
Aug. 31,2026
Aug. 31,2026
Aug. 31,2026
Aug. 31,2026
Aug. 31,2026
Sep. 18,2026
Sep. 30,2026
Nov. 30,2026
Dec. 24,2026
Dec. 25,2026
Dec. 25,2026
Dec. 25,2026
Jan. 19,2027
Jan. 29,2027
Feb. 26,2027
Feb. 26,2027
Apr. 22,2027
Jun. 24,2027
Jun. 25,2027
Jul. 30,2027
Aug. 31,2027
Aug. 31,2027
Aug. 31,2027
Aug. 31,2027
Aug. 31,2027
Aug. 31,2027
Aug. 31,2027
Aug. 31,2027
Aug. 31,2027
Sep. 10,2027
Sep. 30,2027
Oct. 13,2027
Dec. 24,2027
Jan. 19,2028
Jan. 19,2028
Jan. 19,2028
Jan. 19,2028

Development Bank of Japan Inc.
Resona Bank, Limited.
The Ashikaga Bank, Ltd.
Development Bank of Japan Inc.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Aozora Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank, Limited
MUFG Bank, Ltd.
SBI Shinsei Bank, Limited
The 77 Bank, Ltd.
Nippon Life Insurance Company
Mitsui Sumitomo Insurance Company, Limited

Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Trust & Banking co., Ltd.
Mizuho Trust & Banking co., Ltd.
Aozora Bank, Ltd.
Mizuho Bank, Ltd.
Aozora Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Mizuho Bank, Ltd.

Total

Issue
13th unsecured investment corporation bonds
16th unsecured investment corporation bonds
6th unsecured investment corporation bonds
18th unsecured investment corporation bonds
19th unsecured investment corporation bonds
14th unsecured investment corporation bonds
17th unsecured investment corporation bonds
15th unsecured investment corporation bonds
9th unsecured investment corporation bonds

Total

500
1,000
1,000
1,500
1,500
1,500
1,500
1,000
1,500
1,000
1,000
1,000
1,000
1,000
1,500
2,000
1,000
3,000
1,000
1,000
1,000
1,000
1,500
500
1,500
1,000
500
3,500
1,500
2,000
1,000
1,500
2,500
1,000
500
1,500
2,000
1,500
1,500
200,500

Balance at end of
period

3,000
1,000
1,000
2,000
3,000
1,000
1,000
1,000
1,000
14,000

0.47%
0.91%
0.91%
0.91%
0.53%
0.54%
0.51%
0.71%
0.51%
0.84%
0.99%
0.53%
0.54%
0.76%
0.59%
1.07%
1.07%
0.71%
1.07%
1.07%
1.07%
0.82%
0.59%
1.02%
1.23%
1.23%
0.79%
1.07%
0.90%
0.92%
0.65%
0.76%
1.18%
0.62%
0.63%
1.18%
0.98%
0.66%
0.98%

Interest rate

Fixed

Development Bank of Japan Inc.

The Bank of Fukuoka, Ltd.

The Chiba Bank, Ltd

Outstanding balance at
end of period

Fixed

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation

500
500
500
1,000
1,000
1,500
1,500
1,000
1,500
1,000
1,000
500
500
1,000
1,000
500
500
1,000
500
2,000
1,000
1,000
500
3,000
2,000
1,000
1,000
1,000
500
500
500
5,500
1,000
1,000
500
500
500
1,000
3,000
1,500
1,000
500
500
1,000
3,000
1,500
1,000
1,000
500
1,500
1,500
500
500
1,000
1,000
1,500
1,000
1,000
1,000
500
1,500

Fixed

Sumitomo Mitsui Banking Corporation

MUFG Bank, Ltd.

Fixed

Mizuho Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited

SBI Shinsei Bank, Limited▮ Long-Term Loans
Lender

The 77 Bank, Ltd.

0.17%
0.11%
1.07%
0.42%
0.79%
0.50%
0.50%
0.75%
1.08%

Jan. 19,2021
Mar. 1,2023
Mar. 1,2023
Mar. 1,2023
Mar. 31,2021
Apr. 9,2021
Oct. 11,2019
Apr. 11,2022
Oct. 17,2019Aug. 31,2023
Mar. 1,2023
Aug. 31,2020Aug. 31,2020May. 31,2023
Oct. 29,2021
Feb. 28,2023
Mar. 1,2023
Feb. 28,2022
Feb. 28,2023
Mar. 1,2023
Mar. 1,2023
Apr. 11,2022
Apr. 23,2021
Aug. 31,2023
Mar. 1,2023
Mar. 1,2023
Feb. 28,2022
Apr. 12,2023
Apr. 11,2022
Apr. 13,2022
Dec. 24,2021
Jan. 19,2022
Aug. 31,2023
Aug. 31,2021
Aug. 30,2021
Aug. 31,2023
Apr. 28,2022
Aug. 31,2021
Apr. 11,2022

Jan. 19,2028
Feb. 29,2028
Feb. 29,2028
Mar. 1,2028
Mar. 31,2028
Apr. 7,2028
Apr. 11,2028
Apr. 11,2028
Apr. 17,2028
May. 31,2028
Aug. 31,2028
Aug. 31,2028
Aug. 31,2028
Aug. 31,2028
Oct. 31,2028
Feb. 28,2029
Feb. 28,2029
Feb. 28,2029
Feb. 28,2029
Feb. 28,2029
Feb. 28,2029
Apr. 11,2029
Apr. 23,2029
Aug. 31,2029
Feb. 28,2030
Feb. 28,2030
Feb. 28,2030
Mar. 29,2030
Apr. 11,2030
Apr. 12,2030
Jun. 24,2030
Jul. 19,2030
Aug. 30,2030
Aug. 30,2030
Aug. 30,2030
Aug. 30,2030
Oct. 28,2030
Feb. 28,2031
Apr. 11,2031

Issue date

Maturity dateFeb. 25,2021
Feb. 21,2022
Feb. 26,2015
Jun. 20,2022
Feb. 17,2023
Feb. 25,2021
Feb. 21,2022
Feb. 25,2021
Feb. 23,2017

Feb. 22,2024
Feb. 28,2025
Feb. 26,2027
Feb. 29,2028
Feb. 28,2029
Feb. 25,2031
Feb. 27,2032
Feb. 25,2036
Feb. 23,2037(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：224,500 million yen
Borrowed and issued during the 43rd period ended August 2023.

57

Investors
Top 10 Unitholders (Total Number of Outstanding Investment Units: 3,560,000)
Number ofunits held
1,038,700

Unitholders
MORI TRUST Holdings, Inc.

（As of Aug. 31, 2023)

Ownership ratio
29.2%

Custody Bank of Japan, Ltd.(Trust accounts)

698,860

19.6%

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

370,818

10.4%

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

125,790

3.5%

SSBTC CLIENT OMNIBUS ACCOUNT

47,321

1.3%

STATE STREET BANK WEST CLIENT - TREATY 505234

43,615

1.2%

JP MORGAN CHASE BANK 385781

34,546

1.0%

LEGAL + GENERAL ASSURANCE PENSIONS MANAGEMENT LIMITED

32,401

0.9%

JP MORGAN CHASE BANK 385771

31,845

0.9%

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

28,9600.8%

2,452,856

68.9%

Total of top 10 unitholders

Changes in Investment Unitholder Ratio by Owner(End of Each Fiscal Period)
Total number ofoutstanding
investment units
as of August 31,
2023: 3,560,000
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

Changes in Number of Investment Unitholders by Owner(End of Each Fiscal Period)■ Total number of investment unitholders■ Individuals and others■ Financial institutions(incl. securities companies)■ Other domestic
corporations■ Overseas corporations
and individuals

58Changes in Unit Prices
Closing Unit Price and Trading Volume (February 13, 2004 to August 31, 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 of investment units (at the ratio of 1 to 2 units) on March 1, 2023,
and figures prior to March 1, 2023 are revised accordingly.

Comparative Performance of Closing Unit Price (February 13, 2004 to August 31, 2023)

59

Changes in Vacancy Rate and Rent per Unit in Major Cities

Yokohama Business Districts

Tokyo Business Districts
(%)

(yen/

Average rent (right axis)

month,tsubo)

Average vacancy rate (left axis)

20

15

(%)

25,00020

20,00015

Osaka Business Districts

Average rent (right axis)

(%)

(yen/

Average vacancy rate (left axis)

month,tsubo)

12500

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

20

(yen/
month,tsubo)

12500

15
10000

10000
10

Mar-23Mar-22Mar-21

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

Mar-15Mar-14Mar-13Mar-12Mar-11Mar-10Mar-095000

Mar-070

Mar-23Mar-22Mar-21

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

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

5000

7500

5

Mar-087500

Mar-07Mar-23Mar-22Mar-21

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

Mar-150

Mar-145,000

Mar-130

Mar-12

5Mar-11

10,000Mar-105Mar-0910

Mar-0815,000Mar-07

10

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

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

Fukuoka Business Districts

Sendai Business Districts

Nagoya Business Districts(yen/

Average vacancy rate (left axis)

month,tsubo)

(%)
12500

15
10000

10000
10

Fukuoka business districts : Akasaka Daimyo, Tenjin, Yakuin and
Watanabe Dori, Gion and
Gofukumachi, Hakata Station front,
Hakata Station East and Southmonth,tsubo)

12500

15
10000

Sendai business districts : Station front area, area around
Ichibancho, area around prefectural
government and city hall, area east of
the station, and neighboring office0

Mar-23Mar-22Mar-21

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

5000

Mar-15Mar-23Mar-22Mar-21

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

Mar-15Mar-14Mar-13Mar-12Mar-11Mar-105000

Mar-0907500

5Mar-147500

5Mar-08Mar-23Mar-22Mar-21

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

Mar-15Mar-14Mar-13Mar-12Mar-11Mar-10Mar-09Mar-085000
Mar-07

0

(yen/

10

Mar-077500

5Average vacancy rate (left axis)

Mar-13

10

Average rent (right axis)

20Mar-1215

Average rent (right axis)

Mar-1112500

20Mar-1020(%)

Mar-09(yen/

Average vacancy rate (left axis) month,tsubo)Mar-08Average rent (right axis)

Mar-07(%)

Nagoya business districts : Meieki, Fushimi, Sakae, andMarunouchi

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

60

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).

61

Organization Chart

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.

1

MTR

General Meeting ofUnitholders

3

6
7

Board of Management
Executive Director:
Hiroshi Naito
Supervisory Director:
Naomasa Nakagawa
Supervisory Director:
Harumi Katagiri
Accounting Auditor
Ernst & Young
ShinNihon LLC
4General Services Agreement(Administration of Registration
Share Issuance and Accounting)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 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.

62

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.3(1) Asset size is the total acquisition price. The same applies thereafter.
(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 contractof the pass-through type, the occupancy rate calculated based on the occupancy rate under the sublease contract is stated. The same applies thereafter.
(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) NOI yield = NOI for the 43rd FP (annualized) / Total acquisition price(5) Yield after depreciation = Real estate rental income after depreciation for the 43rd FP (annualized) / Total acquisition price(6) The average interest rate at the end of the fiscal period is indicated starting from the fiscal period ended August 2023.
(7) NAV per unit: (Year-end net asset value + Unrealized profit and loss - Total distribution) ÷ Number of investment units issued
P.4(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 same applies thereafter.
(2) A master lease agreement, under which rent income is linked to rents under sublease agreements, has been used for the office and store sections, and a master
lease agreement specifying a fixed rent has been used for the hotel section of Tokyo Shiodome Building. Therefore, the numbers in parentheses of the occupancy
rates of the properties, represent occupancy rates based on sublease agreements for the office and store section and occupancy rates based on the master leaseagreement for the hotel section. The same applies thereafter.
(3) "4 properties with variable rents" are Shangri-La, Hilton Odawara, the Courtyard Tokyo and Courtyard Shin-Osaka, all of which have variable rents. The same applies
thereafter.
P.5(1) Average daily rate (ADR) represents the average unit price of guestrooms, including service charges. RevPAR (revenue per available room) represents theaccommodation revenue per room for the total number of guestrooms available for sale, including service charges. The same applies thereafter.

63

Notes (2)P.10(1) A master lease agreement, under which rent income is linked to rents under sublease agreements, has been used for the office and store sections, and a master
lease agreement specifying a fixed rent has been used for the hotel section of Tokyo Shiodome Building. Therefore, the numbers in parentheses of the occupancy
rates of the properties, represent occupancy rates based on sublease agreements for the office and store section and occupancy rates based on the master leaseagreement for the hotel section. The same applies thereafter.
P.15(1) Central Tokyo refers to Chiyoda-ku, Chuo-ku, Minato-ku, Shinagawa-ku, Shibuya-ku and Shinjuku-ku(2) Other (metropolitan area, ordinance-designated cities, etc.) refers to metropolitan area (Tokyo (excluding central Tokyo) , Kanagawa, Chiba and Saitama) andordinance-designated cities, etc.
(3) Major cities across Japan refers to 23 wards of Tokyo and government ordinance-designated cities(4) “Famous tourist sites” indicates areas with appealing culture, tourism resources, etc. that already have the capacity to attract tourists or are expected to have thecapacity to attract tourists in the future.
(5) 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.
(6) Before the Merger refers to the time as of the end of the fiscal period ended in February 2023 for MTR and MTH.
(7) After the Merger refers to the time as of March 1, 2023.
P.18(1) In the “Changes in number of inbound (vs.2019)” chart, For the July and August 2023 values for the West, since the U.S., Canada, Mexico, U.K., France, Germany,
Italy, Spain, Russia, and Scandinavia have only disclosed estimates as of October 11, 2023, the comparisons with July and August 2019 are calculated based on the
total of these estimates and the total of the results for the same countries and regions in July and August 2019.
(2) In the “Changes in number of inbound (vs.2019)” chart, For the July and August 2023 values for Asia (excluding China), since South Korea, Taiwan, Hong Kong,
Thailand, Singapore, Malaysia, Indonesia, the Philippines, Vietnam, and India have only disclosed estimates as of October 11, 2023, the comparisons with July andAugust 2019 are calculated based on the total of these estimates and the total of the results for the same countries in July and August 2019. In the Middle East
regions, since the aggregation criteria differ in 2019 and 2023, calculation of the comparisons with July and August 2019 has been omitted.
(3) 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 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 February 2020 and the assumed rent if the Hilton Odawara, which was acquired on September 2, 2019, had been owned from the beginningof the fiscal period ended February 2020 (September 1, 2019) (hereinafter referred to as the “Hilton Odawara assumed rent for the fiscal period ended February2020”). 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.21(1) LTV as of March 1, 2023 is calculated by dividing a sum of the total interest-bearing debts above by the total assets as of March 1, 2023.
P.28(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 determinedbased on their main use.
P.29
(1) The picture of Tokyo World Gate Akasaka is a conceptual drawing at the time completion, and may be different from the actual result.

64Notes (3)P.36(1) For the July and August 2023 values for the West, since the U.S., Canada, Mexico, U.K., France, Germany, Italy, Spain, Russia, and Scandinavia have only disclosed
estimates as of October 11, 2023, the comparisons with July and August 2019 are calculated based on the total of these estimates and the total of the results for thesame countries and regions in July and August 2019.
(2) For the July and August 2023 values for Asia (excluding China), since South Korea, Taiwan, Hong Kong, Thailand, Singapore, Malaysia, Indonesia, the Philippines,
Vietnam, and India have only disclosed estimates as of October 11, 2023, the comparisons with July and August 2019 are calculated based on the total of theseestimates and the total of the results for the same countries in July and August 2019. In the Middle East regions, since the aggregation criteria differ in 2019 and2023, calculation of the comparisons with July and August 2019 has been omitted.
p.37(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 monthfour 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 baseperiod for calculation of rent, which for the 13th FP of MTH corresponds to the period from January 2021 to December 2021, and which for the 43rd FP corresponds tothe period from January 2022 to December 2022, is used.
（2）Rent recording month represents the month for which MTR 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. The same applies thereafter.
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 amount equivalent to 94.5% quasi-co-ownership interest in the trust beneficiary interest owned by MTR. The same applies thereafter.
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 amount equivalent to 93.5% quasi-co-ownership interest in the trust beneficiary interest owned by MTR. The same applies thereafter.
（3）At CYT, since there is the difference (shortfall) of 274 million yen between the total amount of rent for the period from October 2021 to September 2022 and theminimum 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 REIT is 237 million yen.) was added to the rent for the 13th fiscal period of MTH and also 22 million yen (out of this amount, the amountequivalent to 93.5% quasi-co-ownership interest in the trust beneficiary interest owned by MORI TRUST REIT is 21 million yen.) will be added to the rent for the 14th
fiscal period of MTH separately.
（4）At CYO, 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 theminimum annual guaranteed rent, 378 million yen was added to the rent for the 13th fiscal period of MTH and also 34 million yen will be added to the rent for the
14th fiscal period of MTH separately.
P.38(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 monthfour 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 baseperiod for calculation of rent, which for the 14th FP of MTH corresponds to the period from July 2021 to June 2022, and which for the 43rd FP corresponds to theperiod from January 2022 to December 2022, is used.

65Notes (4)P.48(1) Acquisition price and leasable area indicate the figures corresponding to the quasi-co-ownership interest owned by MTR. For details, please view “Financial Summary(REIT) for Fiscal Period Ended August 31, 2023” published on October 20, 2023. The same applies thereafter.
(2) 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.
(3) The real estate in trust associated with Frespo Inage is only land, and the building is not included.
P.49(1) Kamiyacho Trust Tower was additionally acquired on March 1, 2023. The figures in brackets are obtained by deducting the amount equivalent to the additionallyacquired from the appraisal value of the portfolio properties at the end of fiscal period ended August 2023.
(2) Sendai MT Building was additionally acquired on August 31, 2023 (90,845/300,000 co-ownership interest). Furthermore, we plan to additionally acquire
90,845/300,000 co-ownership interest on February 29, 2024, respectively. For the details of acquisition of Sendai MT Building, please see the release of MTR, “Noticeof Sale of Asset (Shinbashi Ekimae MTR Building) and Acquisition and Lease of Asset (Sendai MT Building)” dated July 28, 2022.
(3) For Frespo Inage, the direct reduction method is not adopted, and the terminal cap rate have not been established.
(4) Since one-third of the co-ownership interest in Shinbashi Ekimae MTR Building was sold on August 31, 2023, the co-ownership interest owned by MTR is one-thirds.
The decrease in the book value and appraisal value at the end of the fiscal period compared with the previous fiscal period is due to the difference that occurred as aresult of selling the co-ownership interest.
(5) 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.50
(1) 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, therate 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 the rents for joint management units, is used for Kamiyacho Trust Tower, and the number inparentheses of the occupancy rate of the property is the occupancy rate of the entire joint management units.
(3) Regarding the office portion of the Kioicho Building, MTR leases the building portion of the Kioicho Building from a fiduciary trust company under a master leaseagreement and subleases it to tenants. For the residential section, MTR enters into a pass-through master lease agreement. The occupancy rates stated above arethose under the sublease agreement for the office portion and the master lease agreement for the residential portion. The figure in brackets for the occupancy rate of
the building is the occupancy rate based on the sublease agreements of the office and residential portions of the building.
(4) 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 inbrackets for the occupancy rate of the building is the occupancy rate based on the sublease agreement.
(5) A master lease agreement under which rent income is linked to rents under a sublease agreement has been concluded for Osaki MT Building, and the figure inbrackets for the occupancy rate of the building is the occupancy rate based on the sublease agreement.
(6) The agreement used for the Midosuji MTR Building is the master lease pass-through model, and the occupancy rate in brackets for the building is that based on thesublease agreement.
(7) MTR leases the land and building of Hiroo MTR Building, Tenjin Prime and SHIBUYA FLAG from a fiduciary trust company under a master lease agreement andsubleases it to tenants. The occupancy rates of the above properties are for those under the sublease agreements.
(8) The numbers in parentheses of subtotal and total occupancy rates represent occupancy rates based on sublease agreements for Kioicho Building, Osaki MT Building,Sendai MT Building and Midosuji MTR Building and the occupancy rate calculated based on the occupancy rate of the entire joint management units for Kamiyacho
Trust Tower.

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Notes (5)P.51～54(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 thesectional ownership. The exclusive portion of the floor space owned by a fiduciary of the trust in which MTR is the sole beneficiary is 24,598.85 m2.
(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) Shangri-La Tokyo 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 MTR as the sole beneficiary is 22,300.31 ㎡ (area written in the registration book).
(10) The grand total of total floor area for the entire buildings of the Hilton Odawara Resort & Spa is stated. The floor area of the exclusive element owned by thetrustee with MTR as the sole beneficiary (50/100) is 25,302.83 ㎡(11) Courtyard by Marriott Tokyo Station is a unit ownership building, and the total floor area of the entire building of KYOBASHI TRUST TOWER is stated. The floor areaof the exclusive element owned by the trustee with MTR is 5,502.63 ㎡ (area written in the registration book). The quasi-co-ownership interest in the Courtyard by
Marriott Tokyo Station owned by MTR is 93.5%.
(12) Courtyard by Marriott Shin-Osaka Station is a co-owned building. The interest in the Courtyard by Marriott Shin-Osaka Station owned by MTR is 74%.
(13) The floor area of Frespo Inage is the area of the real estate trust associated with the real estate trust’s beneficiary rights.
(14) This is a co-owned building, and the area that is obtained by multiplying the above area by MTR's co-owned interest (1/3) is 2,606.81 ㎡.
(15) Portfolio PML is calculated by assuming an earthquake with an epicenter close to Tokyo’s Minato Ward out of multiple earthquake scenarios.
P.55(1) In properties with trust beneficiary rights, it is classified as a “Leasing directly to tenants” if MTR conclude sublease contracts directly with tenants after an owner,
which is the fiduciary trust company and lessor, and MTR, which is the trust beneficiary and lessee, conclude a master lease contract.
(2) Along with fixed annual rent, the total amount of property tax and city planning tax equivalent amount and casualty insurance equivalent amount is paid as variable
rent.
(3) The rent received from subtenant by tenant etc.
(4) The amount calculated by multiplying the total income generated from these joint management units by the ownership shares based on the exclusively owned area
owned by MTR.
(5) The system in which 25 floors from the sixth to the 30th floors of Kamiyacho Trust Tower are designated as joint management units. Each unit owner signs a leaseagreement with MORI TRUST CO., LTD., designating the unit owner as the lessor and MORI TRUST CO., LTD. as the lessee, and the lessee subleases each floor as a
joint management unit.

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Notes (6)P.57(1) Based on the loan agreements, interests were accrued excluding the first day of the borrowing period. Thus, no interest was incurred for the fiscal period ended
August 31, 2023.
P.58(1) Due to conducting a 2-for-1 split of investment units with February 28, 2023, as the record date and March 1, 2023, as the effective issue date, the total amount ofoutstanding investment units following the split was 2,640,000, and in addition, in conducting the merger, MTR allotted and delivered 1.84 MTR investment units per 1
MTH investment unit owned on March 1, 2023, and due to the issuing of 920,000 new investment units, the total number of outstanding investment units became
3,560,000.
P.61(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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Disclaimer• The purpose of this document is to provide information. It is not intended to solicit investment or recommend
investment in specific issues. MTR caution readers to contact their securities company representative if intending
to acquire or sell any of MTR’s investment products or investment units.
• The transaction prices of real estate investment securities may decrease due to changes in the prices or
profitability of real estate held as assets, the deterioration of the financial condition of the issuer, changes inmarket conditions, or other factors resulting in a loss incurred. When you make an investment, please do so at
your own discretion and risk.
• This document does not constitute a disclosure document or asset management report pursuant to the Financial
Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations, cabinet orders,ministerial ordinances, or cabinet office ordinances based on the Financial Instruments and Exchange Act or the
Act on Investment Trusts and Investment Corporations, regulations of the Tokyo Stock Exchange or other related
rules.
• The information provided in the document is based on the information available as of the date of the document.
MTR do not guarantee the accuracy, completeness, certainty, appropriateness, fairness, etc. of the information
provided.
• While due care is paid regarding the inclusion of information in this document, please understand that the
information may contain errors, etc., and the information in this document may be revised without notice.
• This document includes forward-looking statements which are based on certain preconditions and assumptions
based on the information available as of the date of the document. These statements are affected by changes in
the preconditions or other factors that may occur in the future and do not guarantee future financial
performance, business results, financial conditions, etc.
• MTR prohibit duplication, diversion or other unauthorized use of the information provided in this document
without prior approval.
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