For Translation Purposes Only

FINANCIAL REPORTFOR THE TWENTY- NINTH FISCAL PERIOD ENDED JANUARY 31, 2021
March 17, 2021

Name of issuer:
Stock exchange listing:
Securities code:
Website:Representative of the investment corporation:
Name of asset manager:
Representative of the asset manager:
Contact:

Mori Hills REIT Investment Corporation
Tokyo Stock Exchange
3234
https://www.mori-hills-reit.co.jp/en
Hideyuki Isobe, Executive Director
Mori Building Investment Management Co., Ltd.
Hideyuki Isobe, President & CEO
Akira Nemoto, General Manager of Financial
Department
TEL: +81-3-6234-3234
April 28, 2021
April 16, 2021
Otherwise prepared
Scheduled

Scheduled date for filing of securities report:
Scheduled date for dividends payment:
Supplementary materials for financial results:
Analyst meeting:

1. PERFORMANCE FOR THE TWENTY-NINTH FISCAL PERIOD ENDED JANUARY 31, 2021
(August 1, 2020 – January 31, 2021)(1) Business Results(Percentage change represents a period-on-period comparison)
Operating Revenue

Operating Income

Ordinary Income

Net Income

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen

%

9,820

2.3

6,173

2.4

5,576

2.6

5,575

2.6

9,602

(0.3)

6,028

0.0

5,434

0.5

5,433

0.5

Twenty-ninth
Fiscal Period
Twenty-eighth
Fiscal Period

Net Income
per Unit
Twenty-ninth
Fiscal Period
Twenty-eighth
Fiscal Period

Net Income toTotal Net Assets

Ordinary Income toTotal Assets

Ordinary Income toOperating Revenue

Yen

%

%

%

2,919

2.8

1.4

56.8

2,898

2.8

1.4

56.6

(2) Dividends
Dividends
per Unit

Total
Dividends(excluding
dividends inexcess of
earnings)

Dividends
in ExcessofEarnings
per Unit

Total
Dividends
in ExcessofEarnings

Dividends
per Unit

Total
Dividends

Yen

Millions of yen

Yen

Millions of yen

Yen

Millions of yen

%

%

2,838

5,438

71

136

2,909

5,574

97.5

2.7

2,898

5,433

－

－

2,898

5,433

99.9

2.8

(excluding
dividends inexcess of
earnings)

Twenty-ninth
Fiscal Period
Twenty-eighth
Fiscal Period(including
dividends inexcess of
earnings)(including
dividends inexcess of
earnings)

Dividend
Payout
Ratio

Dividend
Ratio to
Net Assets(Note 1) Total Dividends in Excess of Earnings is entirely the amount attributable to allowance for temporary difference
adjustments.

(Note 2) Dividend Payout Ratio is calculated by using the formula below and is rounded down to one decimal place.
Dividend Payout Ratio = [Total Dividends (excluding dividends in excess of earnings) ÷ Net Income] × 100
Dividend Payout Ratio when calculated by using the formula below is 99.9% for the twenty-ninth fiscal period.
Dividend Payout Ratio = [Total Dividends (including dividends in excess of earnings) ÷ Net Income] × 100(Note 3) Dividend Ratio to Net Assets is calculated by using the formula below.
Dividend Ratio to Net Assets = Dividends per Unit (excluding dividends in excess of earnings) ÷ [(Net Assets per Unit at Beginningof the Period + Net Assets per Unit at End of the Period) ÷ 2] × 100(3) Financial Position
Total Assets

Net Assets to
Total Assets

Net Assets

Net Assets per Unit

Millions of yen

Millions of yen%

Yen

402,887

200,76349.8

104,764

392,258

195,50349.8

104,270

Net Cash
Provided by (Used in)Operating Activities

Net Cash
Provided by (Used in)Investing Activities

Net Cash
Provided by (Used in)
Financing Activities

Cash and
Cash Equivalents
at End of the Period

Twenty-ninth
Fiscal Period
Twenty-eighth
Fiscal Period(4) Cash Flows

Millions of yen

Millions of yen

Millions of yen

Millions of yen

6,672(12,383)

4,971

10,820

6,452

(595)

(5,404)

11,559Twenty-ninth
Fiscal Period
Twenty-eighth
Fiscal Period

2. FORECAST OF RESULTS FOR THE THIRTIETH FISCAL PERIOD ENDING JULY 31, 2021
(February 1, 2021 – July 31, 2021) AND THE THIRTY-FIRST FISCAL PERIOD ENDING
JANUARY 31, 2022 (August 1, 2021 – January 31, 2022)(Percentage change represents a period-on-period comparison)
Operating Revenue
Thirtieth
Fiscal Period
Thirty-First
Fiscal Period

Operating Income%

Millions of yen%

Millions of yen%

Millions of yen

%

9,820

0.0

6,153

(0.3)

5,578

0.0

5,577

0.0

9,899

0.8

6,163

0.2

5,579

0.0

5,577

0.0

Dividends per Unit

(Reference)

Net Income

Millions of yen(excluding dividends in excess of earnings)

Thirtieth
Fiscal Period
Thirty-First
Fiscal Period

Ordinary Income

Dividends in Excess of Earnings
per Unit

Yen

Yen

2,910

－

2,910

－

Estimated net income per unit = [Estimated net income ÷ Estimated number of units issued and outstanding at theend of the period]
Thirtieth fiscal period: ¥2,910
Thirty-First fiscal period: ¥2,910

*OTHER(1) Changes in Accounting Policies, Changes in Accounting Estimates and Corrections of Errors(a) Changes in accounting policies in accordance with amendments to accounting standards, etc.: None(b) Changes in accounting policies other than (a): None(c) Changes in accounting estimates: None(d) Corrections of errors: None
(2) Number of Units Issued and Outstanding(a) Number of units issued and outstanding at end of the period (including own units)
Twenty-ninth fiscal period: 1,916,330 units(b) Number of own units at end of the period
Twenty-ninth fiscal period:

0 units

Twenty-eighth fiscal period: 1,874,960 units
Twenty-eighth fiscal period:

0 units(Note) For the number of investment units used as the basis for calculating net income per unit, please refer to “Per unit
Information” on page 32* This financial report is not subject to audit procedures by certified public accountants or accounting firms.
* Special note
The forecast of results and other forward-looking statements contained in this document are based on
information currently available to and certain assumptions deemed reasonable by Mori Hills REIT
Investment Corporation (the “Company”). Accordingly, actual results, etc. may differ materially due to avariety of factors. Furthermore, these forecasts shall not be construed as a guarantee of dividends. For theassumptions underlying the forecasts of results, please refer to “Assumptions of Forecasts of Results for theThirtieth Fiscal Period Ending July 31, 2021 (February 1, 2021 – July 31, 2021) and the Thirty-First Fiscal
Period Ending January 31, 2022 (August 1, 2021 – January 31, 2022)” presented on pages 9 to 10.

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

○ INDEX

1. MANAGEMENT STATUS ............................................................................................................................... 2(1) Management Status ................................................................................................................................... 2(a)Overview of the Fiscal Period................................................................................................................ 2(b)Outlook for the Next Fiscal Period ...................................................................................................... 5
2. FINANCIAL STATEMENTS .......................................................................................................................... 11(1) Balance sheet ............................................................................................................................................. 11(2) Statement of income and retained earnings ............................................................................................ 13(3) Statement of changes in net assets .......................................................................................................... 14(4) Statement of cash distributions ............................................................................................................... 16(5) Statement of cash flows ............................................................................................................................ 17(6) Notes to assumption of going concern ...................................................................................................... 18(7) Summary of significant accounting policies ............................................................................................ 18(8) Notes to Financial Statements ............................................................................................................... 20(9) Changes in unit issued and outstanding ................................................................................................. 32
3. REFERENCE INFORMATION ..................................................................................................................... 33

1

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

1. MANAGEMENT STATUS(1) Management Status(a) Overview of the Fiscal Perioda) Brief Background of the Investment Corporation
The Company was incorporated by Mori Building Investment Management Co., Ltd. (the Company’s AssetManager) on February 2, 2006 under the Act on Investment Trusts and Investment Corporations (Act No.
198 of 1951, as amended) (the “Investment Trust Act”), and was listed on the Real Estate Investment Trust
Section of Tokyo Stock Exchange, Inc. (the “Tokyo Stock Exchange”) on November 30, 2006 (Securities Code:3234).
In the fiscal period under review (twenty-ninth fiscal period: August 1, 2020 to January 31, 2021), theCompany held a public offering, etc. (41,370 units were offered including a third-party allotment through anover-allotment). As of the end of the twenty-ninth fiscal period, the total number of investment units issued
and outstanding was 1,916,330.
b) Investment Environment and Business Performance(i) Investment Environment
In the twenty-ninth fiscal period, the Japanese economy saw lasting improvement centered on consumer
spending due to the effects of various policies as more economic activities resumed after the lifting of thestate of emergency, but it again started to weaken from the end of the year when COVID-19 spread oncemore.
In such an economic environment, the vacancy rate in the rental office building market continued torise against the backdrop of the spread of remote work triggered by the pandemic and the weakening
business sentiment, and these conditions also resulted in stagnant growth in rent levels.
As for the luxury rental housing market, occupancy rates and rent levels remained solid, driven by theongoing stable demand for quality housing in central Tokyo amid new supply remaining at a certain level.
In terms of the real estate trading market, transaction prices continued to be high due to the increase intransactions centered on large properties backed by the ongoing favorable fund-raising environment andinvestors inside and outside of Japan showing no change in their investment appetite.
(ii) Business Performance
In the twenty-ninth fiscal period, the Company strove to maintain and enhance tenant satisfaction
through measures such as efficient and systematic operational management and maintenance and repairof properties in its portfolio by better understanding tenant needs. Moreover, the Company maintainedand enhanced occupancy rates and rents by proactively launching leasing activities targeting new andexisting tenants while foreseeing trends in rental market conditions.
The Company’s real estate portfolio, as of the end of the twenty-ninth fiscal period, was comprised of 11
properties (Note 1) under management with a total leasable area of 178,845.68m2. The Company has
already invested 402,910 million yen (based on the acquisition price) into this portfolio. The occupancy rate
at the end of the twenty-ninth fiscal period (Note 2) was 98.8 %.

2

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021
(Note 1) With regard to Roppongi View Tower, the Company acquired the trust beneficiary interest in 6% co-ownership interest
on March 22, 2006 and the trust beneficiary interest in 40% co-ownership interest on April 13, 2006. However, theCompany treats these as one property for the purpose of calculating the number of properties in the portfolio. On
April 1, 2014, a split of co-owned property by the method of division in kind was conducted, resulting in the trust
beneficiary interest in 6% co-ownership interest becoming trust beneficiary interest in compartmentalized ownershipfor 12 units and the trust beneficiary interest in 40% co-ownership interest becoming trust beneficiary interest incompartmentalized ownership for 80 units. The same applies hereafter.
With regard to ARK Mori Building, the Company made acquisitions as follows to date. However, the Company treatsthese as one property for the purpose of calculating the number of properties in the portfolio. The same applies
hereafter.
i)
Trust beneficiary interest in compartmentalized ownership for the 13th floor portion on March 22, 2006.
ii) 75% trust beneficiary interest quasi co-ownership interest in compartmentalized ownership for the 12th and22nd floor portions on March 28, 2008.
iii) The remaining 25% trust beneficiary interest quasi co-ownership interest in compartmentalized ownershipfor the 12th and 22nd floor portions on September 30, 2008.
iv) 50% co-ownership interest in compartmentalized ownership for the 23rd floor portion on March 23, 2010. On
March 18, 2011, the co-ownership interest was subsequently entrusted and the Company has held trust
beneficiary interest therein.
v)
Trust beneficiary interest in the remaining 50% co-ownership interest in compartmentalized ownership forthe 23rd floor portion and compartmentalized ownership for the 25th floor portion on March 18, 2011.
vi) Trust beneficiary interest in compartmentalized ownership for the 4th, 15th and 24th floor portions on
August 1, 2011.
vii) Trust beneficiary interest in compartmentalized ownership for the area used as district heating and coolingon the 1st floor and below ground 1st to 4th floor portions on April 1, 2013.
With regard to Akasaka Tameike Tower, the Company made acquisitions as follows to date. However, the Company
treats these as one property for purpose of calculating the number of properties in the portfolio. The same applies
hereafter.
i)
Trust beneficiary interest in office and shop areas (including parts of storage areas, parking lots, etc.)(approximately 35.5% of total exclusive floor area) on September 30, 2008.
ii) Trust beneficiary interest in residential area (including parts of parking lots, etc.) (approximately 30.0% of
total exclusive floor area) on March 18, 2011.
With regard to Roppongi Hills Mori Tower, the Company made acquisitions as follows to date. However, the Company
treats these as one property for purpose of calculating the number of properties in the portfolio. The same applies
hereafter.
i)
50% co-ownership interest in compartmentalized ownership for the 24th floor portion on March 23, 2010.On
August 1, 2011, the co-ownership interest was subsequently entrusted and the Company has held trust
beneficiary interest therein.
ii) Trust beneficiary interest in compartmentalized ownership for the 23rd floor portion and the remaining 50%
co-ownership interest in compartmentalized ownership for the 24th floor portion on August 1, 2011.
iii) Trust beneficiary interest in compartmentalized ownership for the 19th and 22nd floor portions on October
1, 2013.
iv) Trust beneficiary interest in compartmentalized ownership for the 20th floor portion on August 1, 2014.
v)
Trust beneficiary interest in compartmentalized ownership for the 28th floor portion on September 16, 2015.
vi) Trust beneficiary interest in compartmentalized ownership for the 25th floor portion on February 1, 2016.
vii) Trust beneficiary interest in compartmentalized ownership for the 26th, 27th and 29th floor portions on April
1, 2016.
With regard to Atago Green Hills, the Company made acquisitions as follows to date. However, the Company treatsthese as one property for purpose of calculating the number of properties in the portfolio. The same applies hereafter.
i)
45% trust beneficiary interest quasi co-ownership interest in co-ownership interest in ownership andcompartmentalized ownership of Atago Green Hills’ 3 buildings (MORI Tower, Forest Tower and Plaza), as
well as co-ownership interest in ownership of the sites and quasi co-ownership interest in leasehold rightand easement of the sites (approximately 20.0% of total exclusive floor area) on May 1, 2012.
ii) 29% trust beneficiary interest quasi co-ownership interest in co-ownership interest in ownership andcompartmentalized ownership of Atago Green Hills’ 3 buildings (MORI Tower, Forest Tower and Plaza), as
well as co-ownership interest in ownership of the sites and quasi co-ownership interest in leasehold rightand easement of the sites (approximately 12.9% of total exclusive floor area) on April 1, 2013.

3

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021
With regard to Toranomon Hills Mori Tower, the Company made acquisitions as follows to date. However, theCompany treats these as one property for purpose of calculating the number of properties in the portfolio. The same
applies hereafter.
i)
7% quasi co-ownership interest in the trust beneficial interests in 87.95% co-ownership interest incompartmentalized ownership for the 28th to 35th floor portions (approximately 1.0% of total exclusive floorarea) on August 1, 2017.
ii) 7% quasi co-ownership interest in the trust beneficial interests in 87.95% co-ownership interest incompartmentalized ownership for the 28th to 35th floor portions (approximately 1.0% of total exclusive floorarea) on March 1, 2018.
iii) 36% quasi co-ownership interest in the trust beneficial interests in 87.95% co-ownership interest incompartmentalized ownership for the 28th to 35th floor portions (approximately 5.0% of total exclusive floorarea) on September 3, 2018.
iv) 17% quasi co-ownership interest in the trust beneficial interests in 87.95% co-ownership interest incompartmentalized ownership for the 28th to 35th floor portions (approximately 2.4% of total exclusive floorarea) on September 1, 2020.
With regard to Holland Hills Mori Tower, the Company made acquisitions as follows to date. However, the Company
treats these as one property for purpose of calculating the number of properties in the portfolio. The same applies
hereafter.
i)
57% quasi co-ownership interest in the trust beneficial interests in compartmentalized ownership of the 3rd4th, part of the 5th, 14-18th and 22nd-24th floors (approximately 27.6% of total exclusive floor area) on
August 1, 2017.
ii)
15% quasi co-ownership interest in the trust beneficial interests in compartmentalized ownership of the 3rd4th, part of the 5th, 14-18th and 22nd-24th floors (approximately 7.3% of total exclusive floor area) on March
1, 2018.
iii) 28% quasi co-ownership interest in the trust beneficial interests in compartmentalized ownership of the 3rd4th, part of the 5th, 14-18th and 22nd-24th floors (approximately 13.6% of total exclusive floor area) on
September 3, 2018.
(Note 2) The occupancy rate at the end of the fiscal period is calculated by dividing the aggregate of the total leased area for
all properties at the end of the fiscal period by the aggregate of the total leasable area for all properties at the end of
the fiscal period, which is rounded off to one decimal place.

c) Overview of Fund Procurement
During the twenty-ninth fiscal period, the Company issued investment units in the amount of 5,258 million
yen (the amount which was contributed to the Company) and took out long-term loans payable in the amountof 5,200 million yen to be used as funds for the acquisition of new property. The Company took out long-termloans payable in the amount of 6,000 million yen and issued investment corporation bonds in the amount of
3,500 million yen for the refinancing of existing long-term loans payable in the amount of 6,000 million yen
and redemption of investment corporation bonds in the amount of 3,500 million yen.
As a result, as of the end of the twenty-ninth fiscal period, a) the balance of loans payable stands at167,422
million yen (all of these are long-term loans payable (of which, the current portion of long-term loans payable
is 19,000 million yen)), b) the balance of investment corporation bonds stands at 17,000 million yen (of which,the current portion of investment corporation bonds is 2,000 million yen), and c) the balance of interestbearing debt stands at 184,422 million yen.
Of the debt, in addition to the 17,000 million yen in investment corporation bonds and 7,700 million yen
in long-term loans payable that have fixed interest rates, the Company utilizes interest rate swaps to in effectconvert the interest rates for loans payable that have floating interest rates into fixed interest rates in orderto hedge against the risk of upward fluctuations in interest rates. Such measures have been taken for 144,466
million yen of the 159,722 million yen in long-term loans payable that have such floating interest rates (theratio of fixed rate debt against total interest-bearing debt as of the end of the twenty-ninth fiscal period is
91.7%). With respect to future debt, the Company will strive to minimize refinancing risks by diversifying
repayment dates for such debt.
As of the end of the twenty-ninth fiscal period, the Company has obtained an AA long-term issuer rating(rating outlook: stable) from Japan Credit Rating Agency, Ltd.
(Note) Short-term loans payable are loans payable with a term of one year or less (from the drawdown date to the repayment date)and long-term loans payable are loans payable with a term of over one year (from the drawdown date to the repaymentdate). The same applies hereafter.

4

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

d) Overview of Business Results and Distributions
The asset management activities described above resulted in the Company recording in the twenty-ninth
fiscal period 9,820 million yen in operating revenue, 6,173 million yen in operating income, 5,576 million yen
in ordinary income and 5,575 million yen in net income.
With regard to dividends, pursuant to the terms of the distribution policy set forth in Article 37 (1) of theCompany’s Articles of Incorporation, the amount of dividends shall be in excess of an amount equivalent to
90% of the Company’s earnings available for dividends as defined in Article 67-15 of the Special Taxation
Measures Law, but not in excess of the amount of earnings as defined in Article 136, Paragraph 1 of theInvestment Trust Act. Based on such policy, the Company decided to pay out dividends of earnings(5,438,544,540 yen), which is the integral multiple of the total number of investment units issued andoutstanding (1,916,330 units) out of the amount of earnings as defined in Article 136, Paragraph 1 of theInvestment Trust Act.
In addition, pursuant to the terms of the distribution policy set forth in Article 37 (2) of the Company’s
Articles of Incorporation, the Company decided to pay out dividends attributable to allowance for temporary
difference adjustments (136,059,430 yen), which is the integral multiple of the total number of investment
units issued and outstanding (1,916,330 units) in due consideration of the impact of the items of deduction
from net assets (as defined in Article 2, Paragraph 2, Item 30 (b) of the Ordinance on Accountings ofInvestment Corporations) on dividends.
As a result, the Company declared dividends per unit of 2,909 yen.
(b) Outlook for the Next Fiscal Perioda) Future Management Policy
Pursuant to the Company’s investment policy, the Company will seek to grow and increasingly enhance
the profitability and value of assets under management by focusing on the competitiveness and the ability tocreate value attributable to “urban” areas (central Tokyo being the core area) and concentrating investment
into “urban” areas. Specifically, the Company will seek to develop an urban portfolio centered on officebuildings, residential properties, and retail and other facilities with competitive advantages in terms of
quality, scale, and other specifications that can maintain a strong competitive position into the future andthat are situated in “Premium Areas” (“Premium Properties” (Note)). The quintessential example is the “Hills”
brand of large redevelopment properties exhibiting high creativity and added-value in a manner that has
been developed and perfected over the years by the Mori Building Group.
With respect to the management of properties in the portfolio, the Company will seek to ensure stablerevenue over the medium to long term and maintain and enhance the asset value of its portfolio by adopting
the basic policy of enhancing tenant satisfaction and conducting rational, efficient and systematic asset
management and administration.
In addition, the Company will continue to seek maximization of unitholder value by maintaining andincreasing dividends continuously while retaining stability of earnings through fixed-rent master leases
alongside actively pursuing external growth utilizing the property pipeline of Mori Building Group.
Furthermore, although there is a concern that office demand will decrease amidst an increase in thenumber of companies adopting decentralization of workload between headquarters functions and remote work
due to the impact of COVID-19, the Company believes that premium properties in central Tokyo, its principal
investment target, will not be adversely impacted by such concerns as they will continue to demonstrate ahigh competitive advantage with their ability to attract steady office demand for headquarters functions.
(Note) Premium Properties refer to properties with competitive advantages in terms of quality, scale, and other specifications thatcan maintain a superior competitive position into the future and that are situated in “Premium Areas” (Tokyo’s five central
wards (Minato Ward, Chiyoda Ward, Chuo Ward, Shinjuku Ward and Shibuya Ward) and their vicinity; the same applies
hereafter), where the Mori Building Group (Mori Building Co., Ltd., Mori Building Co., Ltd.’s consolidated subsidiaries andequity-method affiliates of Mori Building Co., Ltd., that conduct business in Japan; the same applies hereafter) can fully
demonstrate its brand/marketing strength and facilities management capabilities, etc.

5Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021b) Significant Subsequent Events
Not applicable.
(Reference Information)(i) Asset acquisitions and Lease
The Company resolved at its Board of Directors’ Meeting held on February 19, 2021 to conductacquisitions at a portion of Toranomon Hills Mori Tower.
The seller Mori Building Co., Ltd. constitutes an interested party, etc. of the Company’s Asset Manager,
and the transaction constitutes a transaction with an interested party, etc. as defined in the Investment
Trust Act. Accordingly, to comply with applicable laws and regulations and with the asset managementagreement, as well as to prevent the interests of the Company from being negatively impacted with respect
to the acquisition price and other terms and conditions, the Asset Manager has taken steps pursuant to
the Related Parties Transaction Guidelines.
i) Overview of Acquisitions and Lease
Property name

Toranomon Hills Mori Tower

Asset to be acquired

Trust beneficiary interest (Note 1)

Anticipated acquisition price

7,870 million yen (Note 2)

Appraisal value

9,856 million yen (Note 3)

Sales agreement dateFebruary 19, 2021

Acquisition dateAugust 2, 2021 (anticipated)

SellerMori Building Co., Ltd.

Acquisition financing

Borrowings and cash on hand (anticipated)

LesseeMori Building Co., Ltd. (Note 4)(Note 1) The Company plans to acquire trust beneficiary interest in 87.95% co-ownership interest in compartmentalized
ownership of the 28th-35th floors and co-ownership interest in the land use rights. The Company plans to acquire
an additional 11% quasi co-ownership interest of the trust beneficiary interest and as a result, it will hold 78%
together with the 67% already acquired. The remaining 22% of the quasi co-ownership interest in the trust
beneficiary interest is to be held by Mori Building Co., Ltd.
(Note 2) The indicated anticipated acquisition price does not include acquisition-related costs, consumption taxes andother expenses. The same shall apply hereinafter.
(Note 3) The appraisal value as of February 1, 2021 as described in the real estate appraisal report prepared by Japan
Real Estate Institute.
(Note 4) Please see “ii) Details of the Assets to be Acquired and Lease” for leasing terms and conditions, and other details.

ii) Details of the Assets to be Acquired and Lease
Details of the Asset to Be Acquired
Property name

Trustee

Toranomon Hills Mori Tower
Trust beneficiary interest(87.95% of co-ownership of the 28th to 35th floors)(11% of quasi co-ownership interest)
Mitsubishi UFJ Trust and Banking Corporation

Trust establishment period

From June 26, 2014 to July 31, 2037

Location (Residential indication)

1-23-1 Toranomon, Minato-ku, Tokyo

Use

Offices, Shops, Hotel, Residences

Type of specified asset

Land

17,068.95 m2

Building

Construction completion

241,581.95 m2
Steel-framed and steel-framed reinforced concrete
structure with flat roof, 52 floors above ground and 5
floors below groundMay 2014

Designer

Nihon Sekkei, Inc.

Contractor

Obayashi Corporation

Building verification agency

The Building Center of Japan

Area(Note 1)
Structure

6

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

Form ofownership

Land

Ownership (Note 2)

Building

Compartmentalized ownership (Note 3)

Anticipated acquisition price

7,870 million yen

Acquisition dateAugust 2, 2021 (anticipated)

Appraisal

Appraiser

Japan Real Estate Institute

Appraisal value

9,856 million yen (Appraisal date: February 1, 2021)

PML (Note 4)

0.50%

Collateral

None

Property manager

Mori Building Co., Ltd.

Content of lease (As of January 31, 2021)
Lessee (Note 5)

Mori Building Co., Ltd.

Type of agreement

Regular building lease agreement

Term of agreement
Gross rent income (annual rent)(Note 6)
Deposits/ Guarantees (Note 7)

From August 1, 2017 to July 31, 2022

Total leasable floor area (Note 8)

2,686.00 m2

Total leased floor area (Note 9)

2,686.00 m2
Transfer of Quasi co-ownership interest to a third party
requires the written approval of Mori Building Co., Ltd.

Other special consideration

341,255,844 yen
284,379,879 yen(Note 1) Area (land) is the area of the entire site, and area (building) is the total floor area of the entire building, as
indicated in the real estate registry. The same shall apply hereinafter.
(Note 2) As for land, land use rights for the property are established. The site area corresponding to the quasi co-ownershipinterest in the trust beneficiary interest that the Company plans to acquire equivalent to the ratio of interest in
the building is approximately 476.61m2 (approximately 2.8%). Also, the site area corresponding to the quasi coownership interest in the trust beneficiary interest that the Company plans to own equivalent to the ratio ofinterest in the building will be approximately 3,379.65m2 (approximately 19.8%) after this acquisition.
(Note 3) The exclusive floor area corresponding to the quasi co-ownership interest in the trust beneficiary interest that
the Company plans to acquire as indicated in the real estate registry is approximately 2,686.65m2 (approximately
1.5%). Also, the exclusive floor area corresponding to the quasi co-ownership interest in the trust beneficiaryinterest that the Company plans to own as indicated in the real estate registry will be approximately 19,050.82m2(approximately 10.8%) after this acquisition.
(Note 4) PML means the expected maximum loss rate due to an earthquake, but it is not strictly defined as a unified
definition and is variously defined according to purpose or usage. In this document, it is equivalent to the extent
of damage by an earthquake that causes loss of exceedance probability of 10% during the assumed planned usage
period (50 years = useful life for buildings in general) as indicated by the expected loss equivalent to the 90% nonexceedance probability to the replacement price of the expected loss amount to the replacement price. However,
the expected loss amount evaluates the direct loss of the building (structure, finishing and architecturalequipment) due to liquefaction of the ground and earthquake vibration. Therefore, any loss in operation or loss inworking time from the unavailability of equipment, furniture, fixtures, building occupancy and the secondary
damage such as loss of lives is not included. PML figures are reported from Sompo Risk Management Inc. as ofFebruary 15, 2021.
(Note 5) With regard to the property, the Company will outsource building lease operations to Mori Building Co., Ltd. andshall receive a fixed amount of rent from the company, regardless of the rent amount paid by end tenants. Due tothis, Mori Building Co., Ltd. is treated as the end tenant in the Acquisition.
(Note 6) The gross rent income (annual income) represents the figure obtained by multiplying the monthly consideration
for granting leasing rights described in the agreement to change the co-owned property usage agreement andproperty management operation agreement entirely by the 11% quasi co-ownership interest in the trust
beneficiary interest rounded down below the unit and multiplying that amount by 12.
(Note 7) Deposits/Guarantees represents the figure obtained by multiplying the amount of deposits described in theagreement to change the co-owned property usage agreement and property management operation agreement
entirely by the 11% quasi co-ownership interest in the trust beneficiary interest rounded down below the unit.
(Note 8) Total leasable floor area represents the figure obtained by multiplying the floor area deemed leasable to the lesseeby the 11% quasi co-ownership interest in the trust beneficiary interest, rounded to the second decimal place.
(Note 9) Total leased floor area represents the figure obtained by multiplying the floor area leased to the lessee by the 11%
quasi co-ownership interest in the trust beneficiary interest, rounded to the second decimal place. Total leasable
floor area and total leased floor area do not include storage, parking lots, mechanical rooms, etc.

7Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021(ii) Issuance of Investment Corporation Bond
The Company issued investment corporation bond as follows.
MHR Twenty-first Series Unsecured Investment Corporation Bond (subject to a limited pari passu
clause between specified investment corporation bonds) (green bond)i) Total issue amount of the investment corporation bond
2,000 million yenii) Payment price
100 yen per face value of 100 yen for each investment corporation bondiii) Interest rate
0.500% per annumiv) Payment dateFebruary 22, 2021v) Maturity dateFebruary 21, 2031vi) Use of Funds
It will be allocated to part of funds for redemption of MHR Eleventh Series Unsecured Investment
Corporation Bond of 2,000 million yen.
c) Outlook of Business Results
The Company expects the following business results for the thirtieth fiscal period (February 1, 2021 to July
31, 2021) and the thirty-first fiscal period (August 1, 2021 to January 31, 2022). For the assumptions
underlying the forecasts of results, please refer to “Assumptions of Forecasts of Results for the Thirtieth Fiscal
Period Ending July 31, 2021 (February 1, 2021 – July 31, 2021) and the Thirty-First Fiscal Period Ending
January 31, 2022 (August 1, 2021 – January 31, 2022)” presented below.
Thirtieth Fiscal Period Ending July 31, 2021 (February 1, 2021 – July 31, 2021)
Operating revenue
Operating income¥ 9,820 million¥ 6,153 million

Ordinary income
Net income¥ 5,578 million¥ 5,577 million

Dividends per unit
Dividends in excess of earnings per unit

¥ 2,910¥－Thirty-First Fiscal Period Ending January 31, 2022 (August 1, 2021 – January 31, 2022)
Operating revenue¥ 9,899 million
Operating income
Ordinary income¥ 6,163 million¥ 5,579 million

Net income
Dividends per unit

¥ 5,577 million¥ 2,910

Dividends in excess of earnings per unit¥－

(Note) The forecasted figures above are calculated as of today based on certain assumptions. Forecasts for operating
revenue, operating income, ordinary income, net income, dividends per unit and dividends in excess of earnings
per unit may differ from actual results due to changes in operating conditions and a variety of factors. Furthermore,these forecasts shall not be construed as a guarantee of dividends.

8Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

Assumptions of Forecasts of Results for the Thirtieth Fiscal Period Ending July 31, 2021 (February 1, 2021 – July
31, 2021) and the Thirty-First Fiscal Period Ending January 31, 2022 (August 1, 2021 – January 31, 2022)
Item
Accounting Period

Assumptions
Thirtieth fiscal period: February 1, 2021 – July 31, 2021 (181 days)
Thirty-First fiscal period: August 1, 2021 – January 31, 2022

Portfolio Assets(184 days)

・ Regarding the 11 properties held as of the end of the fiscal period ended January 31, 2021,
the Company assumes that the additional acquisition of a portion of Toranomon Hills Mori
Tower (hereinafter, the “Asset to Be Acquired”) on August 2, 2021 are reflected.
・ The actual portfolio assets may differ from this assumption due to additional changes.

Operating
Revenue・ Rent revenues are estimated based on lease agreements, etc., taking into account themarket environment, the trends of individual tenants and other factors.
・ For the properties owned, the Company assumes that the renewal of the fixed master leasefor part of floors at Roppongi Hills Mori Tower on August 1, 2021 are reflected.
・ The Company assumes that there will be no delinquencies or non-payment of rents bytenants.

Operating Expenses

・ For expenses related to properties, major operating expenses of 3,354 million yen and
3,420 million yen are expected for the fiscal periods ending July 31, 2021 and January 31,
2022, respectively. Expenses other than those below are calculated by referring tohistorical figures and adjusted to reflect variable factors.
(i)

For property taxes, city planning taxes, etc., 750 million yen (for six months) and 755
million yen (for six months) are expected for the fiscal period ending July 31, 2021
and January 31, 2022, respectively. Therefore, the property taxes, city planning taxes,
etc. associated with Asset to Be Acquired will be calculated at the time of acquisition
with the seller using a prorated adjusted amount and the Company shall capitalize
these amounts as part of the cost of the acquisition. No amount is expected to berecognized as operating expenses for the fiscal period ending January 31, 2022.

(ii)

For building maintenance and repairs, the Company recorded the estimated required
amount for the respective fiscal periods as 78 million yen for the fiscal period ending
July 31, 2021 and 83 million yen for the fiscal period ending January 31, 2022.
However, please note that the actual expenses for maintenance and repairs in therespective fiscal periods may differ materially from the estimated amounts due tovarious reasons. For example, an unforeseeable event may cause serious damage to abuilding and emergency repairs may be required as a consequence. Also, maintenanceand repairs are expenses that are not accrued on a regular basis and the amount ofvariation may vary significantly from one period to the next.

(iii) Depreciation and amortization, which are calculated using the straight-line methodwith future additional capital expenditures taken into account, are expected to be
1,069 million yen in the fiscal period ending July 31, 2021 and 1,085 million yen in
the fiscal period ending January 31, 2022.
(iv) For property management fees, 1,168 million yen is expected for the fiscal period
ending July 31, 2021 and 1,176 million yen is expected for the fiscal period ending
January 31, 2022.
・ For the operating expenses other than expenses related to properties (asset management
fee, asset custody fee, administrative service fees, etc.), 312 million yen is expected for the
fiscal period ending July 31, 2021 and 315 million yen is expected for the fiscal period
ending January 31, 2022.

9Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

Item

Assumptions

Non-Operating
Expenses・ The Company expects to incur 370 million yen for the fiscal period ending July 31, 2021
and 384 million yen for the fiscal period ending January 31, 2022 in interest expenses, 46
million yen for the fiscal period ending July 31, 2021 and 46 million yen for the fiscal period
ending January 31, 2022 in interest expenses on investment corporation bonds, and 137
million yen for the fiscal period ending July 31, 2021 and 139 million yen for the fiscal
period ending January 31, 2022 in borrowing expenses.
・ The Company expects to incur 12 million yen for the fiscal period ending July 31, 2021 and5 million yen for the fiscal period ending January 31, 2022 in amortization of investment
unit issuance expenses.

Interest-Bearing
Debt

・ The Company’s balance of interest-bearing debt as of the end of the fiscal period ended
January 31, 2021 is 184,422 million yen.
・ The Company assumes that it will newly borrow 7,870 million yen in August 2021 as partof the funds for the acquisition of the Asset to Be Acquired in the Portfolio Assets as
described above.
・ The balance of loans payable outstanding as of the end of the fiscal period ended January
31, 2021 is 167,422 million yen. The Company assumes that, of that amount, the 19,000
million yen balance of loans payable due for repayment by the end of the fiscal period
ending January 31, 2022 will be refinanced in the entire amount.
・ The balance of investment corporation bonds as of the end of the fiscal period ended
January 31, 2021 is 17,000 million yen. The Company assumes that, of that amount, the2,000 million yen due for redemption by February 2021 was redeemed through issuance ofinvestment corporation bonds of the same amount.

Issuance ofInvestment Units

・ The number of investment units issued and outstanding as of the date of this report is

Dividends per Unit

・ Dividends per unit are calculated based on the assumption that the Company will make(excluding dividends
in excess ofearnings)

distributions in accordance with the distribution policy set forth in its Articles ofIncorporation.

1,916,330 units. The Company assumes that there will be no additional issuance ofinvestment units until the end of the fiscal period ending January 31, 2022.

・ Dividends per unit may vary due to various factors, including changes in the portfolio
assets, changes in rent income due to tenant replacement, unexpected repairs, changes ininterest rates, or additional issuance of new investment units.
・ Dividends per unit are calculated based on the assumption that changes will not arise indeferred losses on hedges, which is an item of deduction from net assets (as defined in
Article 2, Paragraph 2, Item 30 (b) of the Ordinance on Accountings of Investment
Corporations) arising from interest rate swap transactions.

Dividends in Excessof Earnings per Unit

・ As dividends in excess of earnings per unit are calculated based on the assumption thatchanges will not arise in fair value from interest rate swap transactions, the Company does
not plan to make distributions in excess of earnings (allowance for temporary difference
adjustments) for the fiscal periods ending July 31, 2021 and January 31, 2022.
・ Of dividends in excess of earnings, none falling under the category of distributions
accompanying decrease in capital, etc. under tax law is planned at this point in time.

Other・ The Company assumes that there will be no amendments to legislation, taxation,accounting standards, listing regulations, the Investment Trusts Association’s rule, etc.
that would affect the above forecasts.
・ The Company assumes that there will be no unforeseen material changes in general
economic conditions, the real estate market, etc.

10Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

2. FINANCIAL STATEMENTS(1) Balance sheet(Unit: thousands of yen)
As ofJuly 31, 2020
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets

January 31, 2021

6,575,310
4,984,129
292,705
418,683－－

5,479,946
5,340,188262,390399,805
21,94624

12,270,828

11,504,301

Noncurrent assets
Property, plant and equipment
Land
Buildings in trust
Accumulated depreciation

22,074,160
82,735,523(18,110,310)

22,074,160
85,286,897(19,121,190)

Buildings in trust, net

64,625,213

66,165,707

Structures in trust
Accumulated depreciation

929,677(325,377)

964,111(334,274)

Structures in trust, net

604,300

629,836

933,374(308,755)

954,633(332,281)

624,619622,352

271,676(171,265)

286,086(184,581)

Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net

100,411

101,505

Land in trust
Construction in progress in trust

260,234,866
2,526

270,106,484
4,809

Total property, plant and equipment

348,266,097

359,704,855

Intangible assets
Leasehold rights in trust

30,650,962

30,650,962

Total intangible assets

30,650,962

30,650,962

10,000965,213
14
26,35910,000915,537
23
1,013

Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Deferred tax assets
Derivatives
Total investments and other assets
Total noncurrent assets
Deferred assets
Investment corporation bonds issuance cost
Investment unit issuance cost
Total deferred assets
Total assets

11

1,001,587

926,574

379,918,648

391,282,393

54,624
13,90467,30033,746

68,529101,047

392,258,006

402,887,742

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

(Unit: thousands of yen)
As ofJuly 31, 2020
Liabilities
Current liabilities
Operating accounts payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received

January 31, 2021

241,338
5,500,000
12,500,000
20,040297,799901
145,114
1,213,975
21,562

288,253
2,000,000
19,000,000
14,464
311,302
1,087－

Total current liabilities

19,940,732

22,894,889

Noncurrent liabilities
Investment corporation bonds
Long-term loans payable
Lease and guarantee deposits in trust
Derivatives liabilities

11,500,000
149,722,000
14,856,183
735,791

15,000,000
148,422,000
14,957,614
849,472

176,813,975

179,229,087

196,754,707

202,123,976

190,460,106

195,718,191*１ (408,492)*１ (393,340)

Total noncurrent liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders' capital
Allowance for temporary difference
adjustments
Total deduction from unitholders' capital
Unitholders' capital, net
Surplus
Voluntary retained earnings
Reserve for reduction entry

1,258,454
21,327(408,492)(393,340)

190,051,613

195,324,850

291,944

291,944

Total voluntary retained earnings

291,944

291,944

Unappropriated retained earnings

5,869,173

5,995,429

Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

12

6,161,117

6,287,373

196,212,731

201,612,224(709,432)(848,458)(709,432)(848,458)

195,503,298

200,763,766

392,258,006

402,887,742

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

(2) Statement of income and retained earnings(Unit: thousands of yen)
For the six months ended
July 31, 2020
January 31, 2021
Operating revenue
Rent revenues
Other operating revenues
Total operating revenue
Operating expenses
Expenses related to properties
Asset management fee
Directors’ compensation
Asset custody fee
Administrative service fees
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Gain on forfeiture of unclaimed dividends
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bonds
issuance cost
Borrowing expenses
Amortization of investment unit issuance cost
Other
Total non-operating expenses*１, *２ 9,389,038*１, *２ 9,614,085*１, *２ 213,218*１, *２ 206,546

9,602,257

9,820,632*１, *２ 3,251,861*１, *２ 3,315,661

224,815
4,200
9,805
18,52864,155229,246
4,200
9,806
18,996
68,791

3,573,365

3,646,701

6,028,891

6,173,930

48
1,379

54
941

1,428

995

370,700
61,175

383,400
49,526

9,022

7,757

145,882
6,952
1,922

143,930
12,3101,873

595,654598,798

Ordinary income

5,434,665

5,576,128

Income before income taxes

5,434,665

5,576,128

Income taxes-current
Income taxes-deferred

909
22

1,095
(8)

Total income taxes

931

1,086

5,433,733

5,575,042

Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

13

435,439

420,3875,869,173

5,995,429

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

(3) Statement of changes in net assets
For the six months ended July 31, 2020
(Unit: thousands of yen)
Unitholders’ equity

Unitholders’capitalBalance at February 1, 2020

Unitholders’ capital

Surplus

Deduction fromunitholders' capital
Allowance
Total
for
deduction
temporaryfromdifference
unitholders'adjustments
capitalVoluntary retained
earnings

190,460,106

Balance at July 31, 2020

Reserve for
reduction
entry

Total
voluntary
retainedearnings

291,944

291,944(468,740)(468,740)

189,991,366

60,24760,24760,247－60,24760,24760,247－－

190,460,106(408,492)(408,492)

190,051,613

291,944

291,944

Change during the period
Dividends from surplus
Reversal of allowance fortemporary difference
adjustments
Net income
Net changes of items otherthan unitholders’ equity
Total changes of items during
the period

Unitholders'
capital, net

Valuation and translation
adjustments

Unitholders’ equity
Surplus

Balance at February 1, 2020
Change during the period
Dividends from surplus
Reversal of allowance fortemporary difference
adjustments
Net income
Net changes of items otherthan unitholders’ equity
Total changes of items during
the period
Balance at July 31, 2020

Total
unitholders’equityDeferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments

Total net
assetsUnappropri
ated
retainedearnings

Total
surplus5,901,196

6,193,140

196,184,506(5,405,509)(5,405,509)(5,405,509)(5,405,509)(60,247)(60,247)－－

5,433,733

5,433,733

5,433,733

5,433,733(724,583)(724,583)

195,459,922

15,151

15,151

15,151(32,023)(32,023)

28,22415,151

15,151

43,3755,869,173

6,161,117

196,212,731(709,432)(709,432)

195,503,298

14

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

For the six months ended January 31, 2021
(Unit: thousands of yen)
Unitholders’ equity

Unitholders’capitalBalance at August 1, 2020
Change during the period
Issuance of new investment
units
Dividends from surplus
Reversal of allowance fortemporary difference
adjustments
Net income
Net changes of items otherthan unitholders’ equity

Unitholders’ capital

Surplus

Deduction fromunitholders' capital
Allowance
Total
for
deduction
temporaryfromdifference
unitholders'adjustments
capitalVoluntary retained
earnings

190,460,106(408,492)(408,492)

5,258,085

Unitholders'
capital, net

190,051,613

Reserve for
reduction
entry

Total
voluntary
retainedearnings

291,944

291,9445,258,085

15,151

15,151

15,151

Total changes of items during
the period

5,258,085

15,151

15,151

5,273,237－－

Balance at January 31, 2021

195,718,191(393,340)(393,340)

195,324,850

291,944

291,944

Valuation and translation
adjustments

Unitholders’ equity
Surplus
Unappropri
ated
retainedearnings
Balance at August 1, 2020
Change during the period
Issuance of new investment
units
Dividends from surplus
Reversal of allowance fortemporary difference
adjustments
Net income
Net changes of items otherthan unitholders’ equity

5,869,173

Total
surplus6,161,117

Total
unitholders’equity196,212,731

Deferred
gains orlosses onhedges(709,432)

Total
valuationandtranslation
adjustments(709,432)

Total net
assets

195,503,298

5,258,085

5,258,085(5,433,634)(5,433,634)(5,433,634)(5,433,634)(15,151)(15,151)－－

5,575,042

5,575,042

5,575,042

5,575,042(139,026)(139,026)(139,026)

Total changes of items during
the period

126,256

126,256

5,399,493(139,026)(139,026)

5,260,467

Balance at January 31, 2021

5,995,429

6,287,373

201,612,224(848,458)(848,458)

200,763,766

15

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

(4) Statement of cash distributions(Unit: yen)
For the six months ended
July 31, 2020
Ⅰ Unappropriated retained earnings
Ⅱ Addition of dividends in excess ofearnings
Allowance for temporary difference
adjustments
Ⅲ Capitalization
Reversal of allowance for temporary
difference adjustments
Ⅳ Amount of Dividends
Amount of dividends per unit
Dividends of earnings
Dividends of earnings per unit
Allowance for temporary difference
adjustments
Dividends in excess of earnings
per unit (allowance for temporary
difference adjustments)
Ⅴ Retained earnings carried forward
Method of calculating the amount ofdividends

For the six months ended
January 31, 2021

5,869,173,511

5,995,429,871－

136,059,430－

136,059,430

15,151,632－

15,151,632－

5,433,634,080
2,898
5,433,634,080
2,898

5,574,603,970
2,909
5,438,544,540
2,838

－

136,059,430－

71

420,387,799
Pursuant to the terms of the
distribution policy set forth in Article 37(1) of the Company’s Articles ofIncorporation, the amount of dividends
shall be in excess of an amountequivalent to 90% of the Company’s
earnings available for dividends as
defined in Article 67-15 of the Special
Taxation Measures Law, but not inexcess of the amount of earnings as
defined in Article 136, Paragraph 1 ofthe Investment Trust Act. Based onsuch policy, the Company decided to pay
out
dividendsofearnings(5,433,634,080 yen), which is theintegral multiple of the total number ofinvestment
units
issuedandoutstanding (1,874,960 units), out of theamount obtained by subtracting thereversal of allowance for temporary
difference adjustments (as defined in
Article 2, Paragraph 2, Item 30 of theOrdinanceon
Accountingsof
Investment Corporations) from theamount of earnings as defined in Article
136, Paragraph 1 of the Investment
Trust Act.
As a result, the Company declared
dividends per unit of 2,898 yen.

16

556,885,331
Pursuant to the terms of the
distribution policy set forth in Article 37(1) of the Company’s Articles ofIncorporation, the amount of dividends
shall be in excess of an amountequivalent to 90% of the Company’s
earnings available for dividends as
defined in Article 67-15 of the Special
Taxation Measures Law, but not inexcess of the amount of earnings as
defined in Article 136, Paragraph 1 ofthe Investment Trust Act. Based onsuch policy, the Company decided to pay
out
dividendsofearnings(5,438,544,540 yen), which is theintegral multiple of the total number ofinvestment
units
issuedandoutstanding (1,916,330 units) out of theamount of earnings as defined in Article
136, Paragraph 1 of the Investment
Trust Act.
In addition, pursuant to the terms ofthe distribution policy set forth in
Article 37 (2) of the Company’s Articles
of Incorporation, the Company decided
to pay out dividends attributable toallowance for temporary difference
adjustments (136,059,430 yen), whichis the integral multiple of the total
number of investment units issued andoutstanding (1,916,330 units) in due
consideration of the impact of the itemsof deduction from net assets (as definedin Article 2, Paragraph 2, Item 30 (b) of
the Ordinance on Accountings ofInvestment Corporations) on dividends.
As a result, the Company declared
dividends per unit of 2,909 yen.

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

(5) Statement of cash flows(Unit: thousands of yen)
For the six months ended
July 31, 2020
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bonds
issuance cost
Amortization of investment unit issuance cost
Interest income
Gain on forfeiture of unclaimed dividends
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued expenses
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Increase (decrease) in deposits received
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Other, net

January 31, 2021
5,434,665
1,041,061

5,576,128
1,056,619

9,022

7,757

6,952
(48)
(1,379)431,875
41,003－
16,969(10,796)(46,766)(71,498)(10,545)(7,595)
16,485
37,110(71)

12,310(54)(941)
432,926
25,640(21,946)
40,657(4,251)
4,902(145,114)
44,479(235)
18,87849,676(24)

Subtotal

6,886,443

7,097,409

Interest income received
Interest expenses paid
Income taxes paid

48
(432,597)(1,339)54(424,325)(909)

Net cash provided by (used in) operating activities

6,452,555

6,672,228

Net cash provided by (used in) investing activities
Purchase of property, plant and equipment in trust
Repayments of lease and guarantee deposits in trust
Proceeds from lease and guarantee deposits in trust(693,420)(117,924)
215,570(12,478,273)(364,315)
459,574

Net cash provided by (used in) investing activities(595,774)(12,383,015)

12,022,000(7,022,000)

11,200,000(6,000,000)－

3,479,567(5,000,000)－(5,404,873)(3,500,000)
5,225,932(5,434,018)(5,404,873)

4,971,481

451,906(739,304)

Net cash provided by (used in) financing activities
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment
corporation bonds
Redemption of investment corporation bonds
Proceeds from issuance of investment units
Cash dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of the period
Cash and cash equivalents at end of the period

17

11,107,533

11,559,439*１ 11,559,439*１ 10,820,134

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

(6) Notes to assumption of going concern
Not applicable.
(7) Summary of significant accounting policies(a) Property, plant and equipment (including assets in trust) and depreciation
Depreciation of property, plant and equipment of the Company is calculated principally by the straight-line
method based on the following estimated useful lives determined by the Company. Significant renewals andadditions are capitalized at cost. Maintenance and repairs are charged to income.
Buildings
3~68 years
Structures
Machinery and equipment

3~68 years
8~33 years

Tools, furniture and fixtures
3~15 years(b) Intangible assets (including assets in trust)Intangible assets are amortized by the straight-line method based on the estimated useful lives.
(c) Long-term prepaid expenses
Long-term prepaid expenses are amortized by the straight-line method based on the estimated useful lives.
(d) Investment corporation bonds issuance cost
Investment corporation bonds issuance cost is amortized using the straight-line method over the term of thebonds.
(e) Investment unit issuance cost
Investment unit issuance cost is amortized using the straight-line method over three years.
(f) Accounting for property taxes
For property tax, city planning tax and depreciable assets tax, the Company charges the amount of property
taxes assessed and determined applicable to the fiscal period to expenses related to properties.
Registered owners of properties in Japan as of January 1 are responsible for paying property taxes for thecalendar year based on assessments by local governments. Therefore, registered owners who sold properties to
the Company were liable for property taxes for the calendar year, including the period from the date of theacquisition by the Company until the end of the year. The Company reimbursed sellers of properties for theequivalent amount of property taxes and included the amount in the acquisition cost of real estate. The amountequivalent to property taxes included in the cost of acquisition of real estate was none for the period ended July
31, 2020, and 13,256 thousand yen for the period ended January 31, 2021, respectively.
(g) Hedge accounting approacha) Hedge accounting approach
Deferred hedge accounting is applied for interest rate swap transactions. However, special treatment isapplied for interest rate swaps when the requirements for special treatment are fulfilled.
b) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items:c) Hedging policy

Borrowing interest rates

The Company conducts derivative transactions to hedge risks as stipulated in the Company’s Articles ofIncorporation in accordance with the Company’s risk management policy.
d) Method for assessing the effectiveness of hedging
The Company evaluates by comparing the cumulative change in market rates of hedged items and hedging
instruments or cash flow and based on the amount of change in both during the period from the start of hedging
to when the effectiveness is being determined.
However, assessment of the effectiveness is omitted if the important conditions regarding hedging
instruments and hedged items are identical and if it can be assumed that fluctuations of market rates or cash
flow can be completely offset from when the hedge begins. Moreover, assessment of the effectiveness is omitted
for interest rate swaps when the requirements for special treatment are fulfilled.

18

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021(h) Cash and cash equivalents
Cash and cash equivalents in the statement of cash flows consist of cash on hand and deposits in trust; deposits
and deposits in trust that can be withdrawn at any time; and short-term investments with a maturity of threemonths or less from the date of acquisition, which are readily convertible to cash and bear only an insignificant
risk of price fluctuation.
(i) Accounting for trust beneficial interest in real estate
For trust beneficial interest in real estate owned by the Company, all accounts of assets and liabilities within
the assets in trust as well as all accounts of revenue generated and expenses incurred from the assets in trust arerecognized in the relevant accounts of the balance sheet and statement of income and retained earnings.
The following material items of the assets in trust recognized in the relevant accounts are separately listed on
the balance sheet.
a) Cash and deposits in trustb) Buildings in trust; structures in trust; machinery and equipment in trust; tools, furniture and fixtures intrust; land in trust; construction in progress in trust; leasehold rights in trust; and other intangible assets intrustc) Lease and guarantee deposits in trust(j) Consumption taxes
Transactions subject to consumption taxes are recorded at amounts exclusive of consumption taxes. Nondeductible consumption taxes related to the acquisition of assets are treated as the cost of applicable assets.
Additional Information
Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments
For the six months ended July 31, 2020
1. Reason for reversal, and related asset, etc. and amount of reversal
Related asset, etc.

Reason for reversal

Deferred gains or losses
on hedges

Changes in fair value of derivativetransactions(Unit: thousands of yen)
Reversal of allowance for temporary
difference adjustments
15,151

2. Specific method of reversal
Deferred gains or losses on hedges
Reversal in line with changes in fair value of derivative transactions that are the hedging instruments
is planned.
For the six months ended January 31, 2021
1. Reason for provision, and related asset, etc. and amount of provision
Related asset, etc.

Reason for provision

Deferred gains or losses
on hedges

Incurrence of loss on valuation ofinterest swaps(Unit: thousands of yen)
Allowance for temporary difference
adjustments
136,059

2. Specific method of reversal
Deferred gains or losses on hedges
Reversal in line with changes in fair value of derivative transactions that are the hedging instruments
is planned.

19Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

(8) Notes to Financial Statements(Omission of disclosure)
Note to the statement of unitholders’ equity, securities, retirement benefits and asset retirement obligations
are omitted because there is thought to be no large necessity for disclosure in this financial report.
1. Net assets*1 Allowance for temporary difference adjustments
For the six months ended July 31, 2020
1.

Reason and related asset, etc. and amount of provision(Unit: thousands of yen)

Related asset,
etc.

ReasonInitialamountDeferred
gains orlosses onhedgesLoss onvaluationof interest
swaps

Balance at
beginningof theperiod468,740

468,740

2.

Allowance
set aside
duringperiodReversalduringperiodBalance atthe end of
the period

Reason forreversal－

60,247

408,492

Changes infair value ofderivativetransactions

Specific method of reversal
Deferred gains or losses on hedges
Reversal in line with changes in fair value of derivative transactions that are the hedging
instruments is planned.

For the six months ended January 31, 2021
1. Reason and related asset, etc. and amount of provision(Unit: thousands of yen)
Related asset,
etc.

ReasonInitialamountDeferred
gains orlosses onhedgesLoss onvaluationof interest
swaps

Balance at
beginningof theperiod468,740

408,492

2.

Allowance
set aside
duringperiodReversalduringperiodBalance atthe end of
the period

Reason forreversal－

15,151

393,340

Changes infair value ofderivativetransactions

Specific method of reversal
Deferred gains or losses on hedges
Reversal in line with changes in fair value of derivative transactions that are the hedging
instruments is planned.

20Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

2. Breakdown of property-related revenue and expenses*1 Breakdown of property operating income(Unit: thousands of yen)
For the six months ended
July 31, 2020
A. Property operating revenue
Rent revenues
Rent and common area revenue
Other rent revenue

9,383,153
5,884

Other operating revenues
Parking revenue
Utilities and other revenue
Cancellation penalty
Key money income

53,667145,224
13,797529

9,389,038

9,608,272
5,812

213,218

51,171
149,697
5,677－

9,602,257

Total property operating revenue
B. Property operating expenses
Expenses related to properties
Property management fees
Property taxes
Utilities
Maintenance and repairs
Insurance premium
Custodian fees
Depreciation and amortization
Rent expenses
Other lease business expenses

January 31, 2021

1,122,870
725,205
115,650
79,29817,3135,950
1,041,061
129,153
15,3583,251,861

Total property operating expenses
C. Property operating income [A − B]

9,614,085

206,546
9,820,632

1,172,247
736,413116,730
65,31917,877
5,968
1,056,619
129,800
14,6843,315,661

3,251,861

3,315,661

6,350,396

6,504,970*2 Transactions with major unitholders(Unit: thousands of yen)
For the six months ended
July 31, 2020
From operating transactions
Rent revenues
Other operating revenues
Expenses related to properties

January 31, 2021

6,086,486
970
245,141

6,305,587
7
269,644

3. Cash and cash equivalents*1 Relationship between cash and cash equivalents at end of the period in the statement of cash flows and cash
and deposits stated in the balance sheet(Unit: thousands of yen)
For the six months ended
July 31, 2020

January 31, 2021

Cash and deposits
Cash and deposits in trust

6,575,310
4,984,129

5,479,946
5,340,188

Cash and cash equivalents

11,559,439

10,820,13421Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

4. Leases
Operating lease transactions (as lessor)
Future minimum rent revenues under existing non-cancelable lease agreements(Unit: thousands of yen)
As ofJuly 31, 2020
Due within 1 year
Due after 1 year
Total

January 31, 2021

5,088,603
12,183,640

4,921,687
11,515,840

17,272,243

16,437,527

5. Financial instruments(1) Policy for financial instruments(a) Policy for holding financial instruments
The Company makes use of various financial instruments in order to invest surplus funds efficiently. In
addition, concerning fund procurement, the Company adopts a policy of undertaking such fund raising
primarily through the issuance of investment units, the borrowing of funds and the issuance of investment
corporation bonds. The Company limits derivative transactions to those that are entered into for the purposeof hedging the risk of future fluctuations in interest rates on loans payable, and does not engage in
speculative transactions.
(b) Description of financial instruments and associated risks, and risk management structure
Deposits used for investing the Company’s surplus funds are exposed to credit risks, for example, thefailure of the financial institutions that are holding the deposits, but the Company limits the risks bydiversifying financial institutions.
Investment corporation bonds and long-term loans payable are used for fund procurement associatedwith the acquisition of real estate related assets or repayment of loans payable. Of these, loans payable withvariable interest rates are exposed to the risk of fluctuations in interest rates, but derivative transactions
are utilized as hedging instruments.
Interest rate swaps are utilized with the Company seeking to, in effect, convert fluctuating interest rates
on fund procurement into fixed interest rates. For information on the method of hedge accounting approach,hedging instruments and hedged items, hedging policy and method for assessing the effectiveness ofhedging, please refer to “Summary of significant accounting policies; (g) Hedge accounting approach.”
Concerning derivative transactions, risks are managed pursuant to the risk management policy set forth
by the Company.
(c) Supplementary explanation on matters concerning fair value of financial instruments
The fair value of financial instruments, aside from values based on market price, include values basedon reasonable calculations when no market price exists. Certain assumptions are used for the estimation offair value. Accordingly, the results of such estimation may change if different assumptions are used. In
addition, concerning the contract amount of derivative transactions in “Derivative transactions” below theamount itself does not represent the value of the market risks associated with the derivative transactions.

22Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

(2) Fair value of financial instruments
The following are the carrying amount, fair value and the difference between them of financial instruments
as of July 31, 2020.
(Unit: thousands of yen)
Carrying amount

Fair value

Difference(a) Cash and deposits

6,575,310

6,575,310－(b) Cash and deposits in trust

4,984,129

4,984,129－

11,559,439

11,559,439－

5,500,000

5,503,590

3,590

12,500,000

12,533,139

33,139(e) Investment corporation bonds

11,500,000

11,471,300(28,700)(f) Long-term loans payable

149,722,000

149,824,801

102,801

179,222,000

179,332,830

110,830(709,432)(709,432)－

Total(c) Current portion of investment
corporation bonds(d) Current portion of long-termloans payable

Total
Derivative transactions (Note1)

The following are the carrying amount, fair value and the difference between them of financial instruments
as of January 31, 2021.
(Unit: thousands of yen)
Carrying amount(a) Cash and deposits(b) Cash and deposits in trust
Total(c) Current portion of investment
corporation bonds(d) Current portion of long-termloans payable

5,479,946

Fair value

Difference

5,479,946－

5,340,188

5,340,188－

10,820,134

10,820,134－

2,000,000

2,000,340

340

19,000,000

19,058,944

58,944(e) Investment corporation bonds

15,000,000

15,045,700

45,700(f) Long-term loans payable

148,422,000

148,440,141

18,141

184,422,000

184,545,126

123,126(848,458)(848,458)－

Total
Derivative transactions (Note1)(Note 1) Assets and liabilities from derivative transactions are indicated in net amounts and net liabilities are indicated in parentheses.
(Note 2) Method of calculating the fair value of financial instruments, and derivative transactions
Assets(a) Cash and deposits; (b) Cash and deposits in trust
As these are settled within a short period of time, the fair value is approximately the same as the book value and is thus statedat that book value.
Liabilities(c) Current portion of investment corporation bonds; (e) Investment corporation bonds
The fair value of these is based on market prices.
(d) Current portion of long-term loans payable; (f) Long-term loans payable
Of long-term loans payable, as those with variable interest rates reflect market interest rates within a short period of time, thefair value is thought to be approximately the same as the book value and is thus stated at that book value (However, long-termloans payable with variable interest rates that are subject to special treatment for interest rate swaps (please refer to “Derivativetransactions” below) are based on a calculation method of discounting the sum total amount of principal and interest accounted
for together with said interest rate swaps by the rate reasonably estimated as being applicable in the event of a similartransaction.). Meanwhile, those with fixed interest rates are based on a calculation method of discounting the sum total amountof principal and interest by the rate reasonably estimated as being applicable in the event of a similar transaction.
Derivative transactions
Please refer to “Derivative transactions” below.

23

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021
(Note 3) Redemption of monetary claims scheduled to be due after the balance sheet date (as of July 31, 2020)(Unit: thousands of yen)
Due within
1 yearDue after
1 year,but within
2 years

Due after
2 years,
but within
3 years

Due after
3 years,
but within
4 years

Due after
4 years,
but within
5 years

Due after
5 years

Cash and deposits

6,575,310

－

－

－

－

－

Cash and deposits in trust

4,984,129

－

－

－

－

－

11,559,439

－

－

－

－

－

Total

Redemption of monetary claims scheduled to be due after the balance sheet date (as of January 31, 2021)(Unit: thousands of yen)
Due within
1 yearDue after
1 year,but within
2 years

Due after
2 years,
but within
3 years

Due after
3 years,
but within
4 years

Due after
4 years,
but within
5 years

Due after
5 years

Cash and deposits

5,479,946

－

－

－

－

－

Cash and deposits in trust

5,340,188

－

－

－

－

－

10,820,134

－

－

－

－

－

Total

(Note 4) Investment corporation bonds and long-term loans payable scheduled to be due after the balance sheet date (as of July 31, 2020)

Due within
1 yearDue after
1 year,but within
2 years

Due after
2 years,
but within
3 years

Due after
3 years,
but within
4 years(Unit: thousands of yen)
Due after
4 years,
Due after
but within
5 years
5 years

Investment corporation bonds

5,500,000－－－

4,000,000

7,500,000

Long-term loans payable

12,500,000

22,000,000

15,200,000

18,800,000

17,334,000

76,388,000

18,000,000

22,000,000

15,200,000

18,800,000

21,334,000

83,888,000

Total

Investment corporation bonds and long-term loans payable scheduled to be due after the balance sheet date (as of January 31, 2021)

Due within
1 yearDue after
1 year,but within
2 years

Due after
2 years,
but within
3 years

Due after
3 years,
but within
4 years(Unit: thousands of yen)
Due after
4 years,
Due after
but within
5 years
5 years

Investment corporation bonds

2,000,000－－

2,000,000

7,000,000

6,000,000

Long-term loans payable

19,000,000

15,500,000

20,400,000

15,800,000

17,194,000

79,528,000

21,000,000

15,500,000

20,400,000

17,800,000

24,194,000

85,528,000

Total

24

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

6. Derivative transactions(1) Transactions for which hedge accounting is not applied
As of July 31, 2020
Not applicable.
As of January 31, 2021
Not applicable.
(2) Transactions for which hedge accounting is applied
As of July 31, 2020
The following is the contract amount or amount equivalent to the principal provided in the contract asof the date of settlement of accounts based on each method of hedge accounting.
Type ofderivativetransaction

Principle
methodInterest rate swap
transactions
Floating receivable;
Fixed payable

Long-termloans payable

95,766,000

95,766,000(709,432)

Based on thequoted priceobtained fromcounterparty
financial
institutions.

Specialtreatmentforinterest
rate
swaps

Interest rate swap
transactions
Floating receivable;
Fixed payable

Long-termloans payable

43,500,000

31,000,000

*

－

Main
hedged item

Contract amount(Unit: thousands of yen)
Method ofFaircalculating thevaluefair value

Method ofhedge
accounting

Due after 1 year

*Derivative transactions that are subject to special treatment for interest rate swaps are accounted for together with long-termloans payable that are the hedged items and the fair value is included in the fair value of those long-term loans payable (pleaserefer to Liabilities (d) and (f) of (Note 2) Method of calculating the fair value of financial instruments, and derivative transactionsof “Financial instruments; (2) Fair value of financial instruments” above).

As of January 31, 2021
The following is the contract amount or amount equivalent to the principal provided in the contract asof the date of settlement of accounts based on each method of hedge accounting.
Type ofderivativetransaction

Principle
methodInterest rate swap
transactions
Floating receivable;
Fixed payable

Long-termloans payable

106,966,000

106,966,000(848,458)

Based on thequoted priceobtained fromcounterparty
financial
institutions.

Specialtreatmentforinterest
rate
swaps

Interest rate swap
transactions
Floating receivable;
Fixed payable

Long-termloans payable

37,500,000

18,500,000

*

－

Main
hedged item

Contract amount(Unit: thousands of yen)
Method ofFaircalculating thevaluefair value

Method ofhedge
accounting

Due after 1 year

*Derivative transactions that are subject to special treatment for interest rate swaps are accounted for together with long-termloans payable that are the hedged items and the fair value is included in the fair value of those long-term loans payable (pleaserefer to Liabilities (d) and (f) of (Note 2) Method of calculating the fair value of financial instruments, and derivative transactionsof “Financial instruments; (2) Fair value of financial instruments” above).

25

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

7. Related party transactions(1) Parent company and major corporate unitholders
For the six months ended July 31, 2020

Type

Name

Capital stock
Percentage
Amount oforof voting Relationshiptransaction
investments Description
Description of
Locationrights held
with(thousandsin capital of business
transactionin (by)related partyof yen)(thousands
related party(Note 1)of yen)Leasing ofproperties(Note 2)
(Note 5)

Other
Mori Minatorelated Building
ku,company Co., Ltd. Tokyo

79,500,000

Real estatebusiness

15.0%
Leasing anddirectly
Payment ofmanagement
held bypropertyof real estate
related party
operation andmanagement
fees(Note 6)

Deposit oflease andguarantee(Note 4)(Note 7)

Account
item

Balanceat end ofthe period(thousandsof yen)Operatingaccounts
551
receivable
Advances
6,087,456
1,093,271
received
Lease andguarantee
9,790,142
deposits
in trust
Prepaid
3,018
expenses
283,110
Operating(Note 3)
accounts
56,266payableLease andguarantee－
deposits
in trust

53,886(Note 1) The amount does not include consumption taxes.
(Note 2) Roppongi Hills Mori Tower, ARK Mori Building, Atago Green Hills, Toranomon Hills Mori Tower, a portion of Koraku Mori Building
and a portion of ARK Hills South Tower(Note 3) The amount includes fees (37,969 thousand yen) that are not charged to expenses but recognized as assets.
(Note 4) Roppongi View Tower[Transaction terms and conditions and related policies](Note 5) The Company engages in transactions by conducting adequate procedures in line with the Related Parties Transaction Guidelines
stipulated by the Company’s Asset Manager and compliance regulations, after having comprehensively considered the market
situation and other factors.
(Note 6)The Company decides on transactions by conducting adequate procedures in line with the Related Parties Transaction Guidelines
stipulated by the Company’s Asset Manager and compliance regulations, in light of the market situation, the content of services
provided, overall operational capacity and other factors.

(Note 7)The Company engages in transactions by conducting adequate procedures in line with the Related Parties Transaction Guidelines
stipulated by the Company’s Asset Manager and compliance regulations, after having comprehensively considered the market
situation and other factors.

26

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

For the six months ended January 31, 2021

Type

Name

Capital stock
Percentage
Amount oforof voting Relationshiptransaction
investments Description
Description of
Locationrights held
with(thousandsin capital of business
transactionin (by)related partyof yen)(thousands
related party(Note 1)of yen)Acquisition of
Property（Note 2）
（Note 6）

Leasing ofproperties
Other
Mori Minatorelated Building
ku,company Co., Ltd. Tokyo(Note 3)(Note 7)79,500,000

Real estatebusiness

15.0%
Leasing anddirectly
management
held byof real estate
related party
Payment ofproperty
operation andmanagement
fees(Note 8)Deposit oflease andguarantee(Note 5)(Note 9)12,220,000

Account
item－

Balanceat end ofthe period(thousandsof yen)－Operatingaccounts
1
receivable
Advances
6,305,594
1,147,885
received
Lease andguarantee
10,229,638
deposits
in trust
Prepaid
3,198
expenses
277,454
Operating(Note 4)accounts
58,519payableLease andguarantee－
deposits
in trust

53,886(Note 1) The amount does not include consumption taxes.
(Note 2) A portion of Toranomon Hills Mori Tower(Note 3) Roppongi Hills Mori Tower, ARK Mori Building, Atago Green Hills, Toranomon Hills Mori Tower and a portion of ARK Hills South
Tower(Note 4) The amount includes fees (7,809 thousand yen) that are not charged to expenses but recognized as assets.
(Note 5) Roppongi View Tower[Transaction terms and conditions and related policies](Note 6) Acquisition decisions are made in accordance with the provisions of the Related Parties Transaction Guidelines stipulated by theCompany’s Asset Manager and compliance regulations Furthermore, acquisitions are not made at a value exceeding the appraisal
value as determined by an independent third-party real estate appraiser (including corporations).
(Note 7) The Company engages in transactions by conducting adequate procedures in line with the Related Parties Transaction Guidelines
stipulated by the Company’s Asset Manager and compliance regulations, after having comprehensively considered the market
situation and other factors.
(Note 8) The Company decides on transactions by conducting adequate procedures in line with the Related Parties Transaction Guidelines
stipulated by the Company’s Asset Manager and compliance regulations, in light of the market situation, the content of services
provided, overall operational capacity and other factors.
(Note 9) The Company engages in transactions by conducting adequate procedures in line with the Related Parties Transaction Guidelines
stipulated by the Company’s Asset Manager and compliance regulations, after having comprehensively considered the market
situation and other factors.

(2) Subsidiaries and affiliates
For the six months ended July 31, 2020
Not applicable.
For the six months ended January 31, 2021
Not applicable.

27

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

(3) Subsidiaries of parent company
For the six months ended July 31, 2020

Type

Name

Capital stock
Percentage
Amount ofBalanceorof votingRelationship Description transaction
at end ofinvestments Description rights held
Account
Location
withof(thousands
the period
in capital of businessin (by)item
related party transactionof yen)(thousands(thousands
related(Note 1)of yen)of yen)party

Mori
Subsidiary
Building Minatoof other
Investmentku,
relatedManagement Tokyo
companyCo., Ltd.

Real estate,
trust
beneficiaryright and
200,000
otherfinancialasset
management
operations

None

Outsourcingof asset
Payment ofmanagement management
fees(Note 2)
Concurrent(Note 3)
post ofdirectors

224,815

Accruedexpenses

247,296(Note 1) The amount does not include consumption taxes.
(Note 2) The amount of management fees is provided in the “Asset Management Contract” concluded between the Company and the Company’s
Asset Manager.
[Transaction terms and conditions and related policies](Note 3) The Company decides on transactions in light of the market situation, the content of services provided, overall operational capacity andother factors.

For the six months ended January 31, 2021

Type

Name

Capital stock
Percentage
Amount ofBalanceorof votingRelationship Description transaction
at end ofinvestments Description rights held
Account
Location
withof(thousands
the period
in capital of businessin (by)item
related party transactionof yen)(thousands(thousands
related(Note 1)of yen)of yen)party

Mori
Subsidiary
Building Minatoof other
Investmentku,
relatedManagement Tokyo
companyCo., Ltd.

Real estate,
trust
beneficiaryright and
200,000
otherfinancialasset
management
operations

None

Outsourcingof asset
Payment ofmanagement management
fees(Note 2)
Concurrent(Note 4)post ofdirectors

241,466 Accrued(Note 3) expenses

252,170(Note 1) The amount does not include consumption taxes.
(Note 2) The amount of management fees is provided in the “Asset Management Contract” concluded between the Company and the Company’s
Asset Manager.
(Note 3) The amount of management fees includes 12,220 thousand yen in acquisition fees pertaining to a real estate acquisition included in thebook value of real estate.
[Transaction terms and conditions and related policies](Note 4) The Company decides on transactions in light of the market situation, the content of services provided, overall operational capacity andother factors.

28

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

(4) Directors and major individual unitholders
For the six months ended July 31, 2020

Type

Name

Directors
and their Hideyuki
close
Isobe
relatives

Capital stock
Percentage
Amount ofBalanceorof votingDescription
Relationship Description transaction
at end ofinvestments
rights held
Account
Locationof businesswithof(thousands
the period
in capitalin (by)item
or position
related party transactionof yen)(thousands(thousands
related(Note 1)of yen)of yen)party－

Executive
Director oftheCompany,
andPresident &－CEO ofMori
Building
Investment
Management
Co., Ltd.

None

Executive
Director of Payment ofthemanagement
Company,
fees toandMori
President & Building
CEO ofInvestment
MoriManagement
Building
Co., Ltd.
Investment(Note 2)
Management(Note 3)
Co., Ltd.

224,815

Accruedexpenses

247,296(Note 1) The amount does not include consumption taxes.
(Note 2) The transaction was conducted with Hideyuki Isobe as third-party representative (Mori Building Investment Management
Co., Ltd.) and the amount of management fees is provided in the “Asset Management Contract” concluded between the
Company and the Company’s Asset Manager.
[Transaction terms and conditions and related policies](Note 3) The Company decides on transactions in light of the market situation, the content of services provided, overall operational
capacity and other factors.

For the six months ended January 31, 2021

Type

Name

Directors
and their Hideyuki
close
Isobe
relatives

Capital stock
Percentage
Amount ofBalanceorof votingDescription
Relationship Description transaction
at end ofinvestments
rights held
Account
Locationof businesswithof(thousands
the period
in capitalin (by)item
or position
related party transactionof yen)(thousands(thousands
related(Note 1)of yen)of yen)party－

Executive
Director oftheCompany,
andPresident &－CEO ofMori
Building
Investment
Management
Co., Ltd.

None

Executive
Director of Payment ofthemanagement
Company,
fees toandMori
President & Building
CEO ofInvestment
MoriManagement
Building
Co., Ltd.
Investment(Note 2)
Management(Note 4)Co., Ltd.

241,466(Note 3)

Accruedexpenses

252,170(Note 1) The amount does not include consumption taxes.
(Note 2) The transaction was conducted with Hideyuki Isobe as third-party representative (Mori Building Investment Management
Co., Ltd.) and the amount of management fees is provided in the “Asset Management Contract” concluded between the
Company and the Company’s Asset Manager.
(Note 3) The amount of management fees includes 12,220 thousand yen in acquisition fees pertaining to a real estate acquisition includedin the book value of real estate.
[Transaction terms and conditions and related policies](Note 4) The Company decides on transactions in light of the market situation, the content of services provided, overall operational
capacity and other factors.

29

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

8. Income taxes(1) Breakdown of significant components of deferred tax assets and deferred tax liabilities(Unit: thousands of yen)
As ofJuly 31, 2020
Deferred tax assets
Accrued enterprise tax excluded
from expenses
Deferred gains or losses onhedgesSubtotal deferred tax assets
Valuation allowance

January 31, 2021

14

23

231,480

267,244

231,494(231,480)

267,267(267,244)

14

23

14

23

Total deferred tax assets
Net deferred tax assets(2) Reconciliation of significant differences between the statutory tax rate and the effective tax rate
As of
Statutory tax rate
[Adjustments]
Deductible cash distributions
OthersJuly 31, 2020
31.46%

January 31, 2021
31.46%(31.45%)0.01%(31.45%)
0.01%

0.02%

0.02%

Effective tax rate

9. Investment and rental properties
The Company owns real estate (primarily office buildings and residential and retail properties) available forlease in Tokyo. The following are the carrying amount, amount of increase (decrease) during the period and fairvalue at end of the period for these investment and rental properties.
(Unit: thousands of yen)
For the six months ended
July 31, 2020
Carrying amount
Balance at beginning of the period
Amount of increase (decrease)during the period
Balance at end of the period
Fair value at end of the period

January 31, 2021

379,226,176

378,917,060(309,115)

11,438,757

378,917,060

390,355,818

457,890,000

471,642,000(Note 1)

The carrying amount is the acquisition cost less accumulated depreciation.

(Note 2)Of the decrease during the period ended July 31, 2020, the decrease is primarily attributable to depreciation andamortization. Of the increase (decrease) during the period ended January 31, 2021, the increase is primarily attributable
to the acquisition of property (Toranomon Hills Mori Tower (approximately 2.4% of total exclusive floor area) (12,252,606
thousand yen)), the decrease is primarily attributable to depreciation and amortization.

(Note 3)

The fair value at end of the period is the appraisal value by a real estate appraiser (according to the “Real EstateAppraisal Report” with the date of settlement of accounts as the appraisal date) pursuant to the method of and standards
for asset valuation provided in the Company’s Articles of Incorporation and the rules provided by The Investment Trusts
Association, Japan.

Income and loss for investment and rental properties is presented in “Breakdown of property-related revenue
and expenses.”30

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

10. Segment and related information[Segment information]
Disclosure is omitted because the Company operates as a single segment – Real estate leasing business.
[Related information]
For the six months ended July 31, 2020
(1) Information about each product and service
Disclosure is omitted because operating revenue from external customers within a single productand service category accounts for over 90% of the operating revenue on the statement of income andretained earnings.
(2) Information about each geographical area(a) Operating revenue
Disclosure is omitted because operating revenue from external customers in Japan accounts forover 90% of the operating revenue on the statement of income and retained earnings.
(b) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japanaccounts for over 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about each major tenant(Unit: thousands of yen)
Name of tenantOperating revenue

Mori Building Co., Ltd.

6,087,456

Related segment
Real estate leasing business

For the six months ended January 31, 2021
(1) Information about each product and service
Disclosure is omitted because operating revenue from external customers within a single productand service category accounts for over 90% of the operating revenue on the statement of income andretained earnings.
(2) Information about each geographical area(a) Operating revenue
Disclosure is omitted because operating revenue from external customers in Japan accounts forover 90% of the operating revenue on the statement of income and retained earnings.
(b) Property, plant and equipment
Disclosure is omitted because the amount of property, plant and equipment located in Japanaccounts for over 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about each major tenant(Unit: thousands of yen)
Name of tenantOperating revenue

Mori Building Co., Ltd.

6,305,594

31

Related segment
Real estate leasing business

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

11. Per unit Information
For the six months ended
July 31, 2020
104,270
2,898

Net assets per unit (yen)Net income per unit (yen)January 31, 2021
104,764
2,919(Note 1) Net income per unit was calculated by dividing the net income by the daily weighted average number of investment
units during the period.
Diluted net income per unit has not been stated as there are no diluted investment units.
(Note 2) The following is the basis for calculating net income per unit.

For the six months ended
Net income (thousands of yen)Amounts not attributable to common
unitholders (thousands of yen)
Net income attributable to common
investment units (thousands of yen)
Average number of investment units
during the period (units)

July 31, 2020
5,433,733

January 31, 2021
5,575,042－－

5,433,733

5,575,042

1,874,960

1,909,317

12. Subsequent events
Not applicable.
(9)

Changes in unit issued and outstanding
New investment units were issued on August 31, 2020 and September 25, 2020 (capital increase through public
offering of 39,400 units and capital increase through third-party allotment of 1,970 units), procuring 5,258 million
yen.
The outline of changes in unitholders’ capital for the previous five years was as follows:
Date

Type of issue

Number of units issued andoutstanding
Increase
BalanceUnitholders’ capital(Millions of yen)
Increase
Balance

Note

February 1, 2016

Public offering

172,000

1,742,040

22,679173,097(Note 2)February 24, 2016

Third-party
allotment

8,600

1,750,640

1,133

174,231(Note 3)

August 1, 2018

Public offering

118,400

1,869,040

15,455

189,687(Note 4)

August 22, 2018

Third-party
allotment

5,920

1,874,960

772

190,460(Note 5)

August 31, 2020

Public offering

39,4001,914,360

5,007

195,467(Note 6)

September 25, 2020

Third-party
allotment

1,970

1,916,330

250

195,718(Note 7)(Note 1) Fluctuation of unitholders’ capital in line with implementation of dividends in excess of earnings from allowance for temporary
difference adjustments is not considered.
(Note 2) New investment units were issued at a price of 131,859 yen per unit through a public offering in order to raise funds foracquiring new real property.
(Note 3) New investment units were issued at a price of 131,859 yen per unit through a third-party allotment in order to raise funds foracquiring new real property.
(Note 4) New investment units were issued at a price of 130,536 yen per unit through a public offering in order to raise funds foracquiring new real property.
(Note 5) New investment units were issued at a price of 130,536 yen per unit through a third-party allotment in order to raise funds foracquiring new real property.
(Note 6) New investment units were issued at a price of 127,099 yen per unit through a public offering in order to raise funds foracquiring new real property.
(Note 7) New investment units were issued at a price of 127,099 yen per unit through a third-party allotment in order to raise funds forpart of future acquisitions.

32Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

3. REFERENCE INFORMATION(1) Investment Status

Type of asset

Maintype of use

RegionTokyo’s five central wards andtheir vicinity－－

Office Buildings Tokyo metropolitan area－－

Principal regional cities

－

－

－

－

Tokyo metropolitan area－－

Principal regional cities－－

22,074

5.5

Tokyo metropolitan area

22,074

5.5

Principal regional cities－－

22,074

5.5

361,979

89.8

Office Buildings Tokyo metropolitan area

361,979

89.8

Principal regional cities

－

－

6,302

1.6

Tokyo metropolitan area

6,302

1.6

Principal regional cities

－

－

－

－

Tokyo metropolitan area－－

Principal regional cities－－

368,28191.4

Deposits and other assets (Note 2)

12,531

3.1

Total assets

402,887

100.0

Tokyo’s five central wards andtheir vicinity
Residential
Real estate

Properties

Tokyo’s five central wards andtheir vicinity
Retail andOther Facilities

Subtotal
Tokyo’s five central wards andtheir vicinity

Tokyo’s five central wards andtheir vicinity
Real estatein trust(as of January 31, 2021)
Percentage of total
assets(%)

Total amount held(millions of yen)
(Note 1)

Residential
Properties

Tokyo’s five central wards andtheir vicinity
Retail andOther Facilities

Subtotal(Note 1) Total amount held is the carrying amount (book value less depreciation and amortization).
(Note 2) Deposits and other assets include deposits within the assets in trust in the amount of 5,340 million yen. Trust beneficiaryinterest in assets which are primarily comprised of real estate, etc., do not include deposits within the assets in trust.

(as of January 31, 2021)
Carrying amount(millions of yen)

Percentage of total assets(%)

Total liabilities

202,123

50.2

Total net assets

200,763

49.8

Total assets

402,887100.033

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

(2) Investment Assets(a) Major Issue of Investment Securities
Not applicable.
(b) Investment Real Estate Properties
An overview, etc. of investment real estate properties held by the Company is presented together with “(c)Major Other Investment Assets” below.
(c) Major Other Investment Assets
The Company holds the following real estate and trust beneficiary interest in real estate listed in the tables
in a) below as of January 31, 2021. Mori Building Co., Ltd. led the development of all of the following real estate
and real estate in trust.
a) Overview of Real Estate and Real Estate in Trust

Office Buildings

Type of asset
Real estate in trust

Main type of use

The following are the real estate and real estate in trust held by the Company as of January 31, 2021.
(i) Overview of Assets by Type of Use

Property
number(Note 1)

Construction

Property nameLocation

date(Note 2)

Structure/
Land area
Total
(m2)
number of(Note 2)floors(Note 3)(Note 2)

Appraisal
Percentage
Form of ownership value at
Grossof total
the end of Book Acquisition(Note 4)
floor area
portfolio
fiscal
value
price
(m2)
acquisition
period (millions (millions of(Note 2)
price(millions of yen)
yen)
(Note 3)
(%)
Land
Bldg.
of yen)(Note 6)(Note 5)O-0
Roppongi,
Premium Roppongi Hills Mori Tower Minato-ku

Apr. 2003

S/SRC
B6F/54F

57,177.66 442,150.70

O-1
ARK Mori Building
Premium

Akasaka,Minato-ku

Mar. 1986

RC/SRC/S
B4F/37F

39,602.42 177,486.95

O-4
Koraku Mori Building
Premium

Koraku,Bunkyo-ku

Mar. 2000

SRC/S
B6F/19F

6,611.58 46,154.65

O-6
Akasaka,
Akasaka Tameike Tower
Premium
Minato-ku

Sep. 2000

S/SRC/RC
B2F/25F

5,694.16 46,971.43

Atago
O-7
Green
Premium
Hills

C

CO

146,300

111,330

115,380

28.6

CO63,90061,47962,48015.5

CO25,50024,72827,2006.8

CO34,80041,45343,93010.9

47,10040,08542,090

10.4

25,20018,663

19,1504.8

C60,032

47,99848,43012.0

CO21,800

16,23916,330

4.1

424,632

361,977

374,990

93.1

2,610

2,228

2,100

0.5

3,400

4,074

4,000

1.0

6,010

6,302

6,100

1.5

41,00022,074

21,8205.4

Subtotal

41,00022,074

21,820

5.4

Total

471,642

390,355

402,910

100.0

MORI Tower(office building)Atago,
Minato-ku

Jul. 2001

S/SRC
B2F/42F

Forest Tower(residentialbuilding)

Atago,
Minato-ku

Oct. 2001

S/SRC
B4F/43F

Plaza
Toranomon,(retail building) Minato-ku

Jul. 2001

RC
B1F/2F

C(Note 7)

L
C
(Note 8)85,266.30
13,014.36**
60,815.71(Note 9)(Note 10) (Note 11)
2,083.60

O-8
ARK Hills South Tower
Premium

Roppongi,
Minato-ku

Jul. 2013

S/SRC/RC
B4F/20F

5,846.69 53,043.48

O-9
Toranomon Hills Mori
Premium Tower

Toranomon,
Minato-ku

May 2014

S/SRC
B5F/52F

17,068.95 241,581.95

O-10
S/SRC/RC
Toranomon,
Holland Hills Mori Tower
Jan. 2005
Premium
B2F/24F
Minato-ku(Note 7)

3,487.61 35,076.12

C

C(Note 12) (Note 12)C(Note 7)C
(Note 13)

Residential
Properties

SubtotalR-3
Roppongi First Plaza
Premium
R-4

Roppongi View Tower

Roppongi,
Minato-ku

Oct. 1993

RC
B1F/20F

Roppongi,
Minato-ku

Oct. 1993

RC
B1F/20FCCO

4,357.88 22,906.74 (Note 14) (Note 15)(Note 14) (Note 14)C
CO(Note 14) (Note 15)

Real estate
Retail and Other
Facilities

Subtotal

S-1
Jingumae,
Laforet Harajuku (Land)
Premium
Shibuya-ku－－

2,565.06

34

－

O

－

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021
(Note 1) “Property number” is the number assigned to real estate and real estate in trust held by the Company classified into the following
main types of use. The alphabet on the left represents the main type of use, where “O” represents an office building, “R” represents
a residential property and “S” represents a retail and other facility. In addition, Premium Properties are denoted by “Premium.”
The same applies hereafter.
(Note 2) “Construction date,” “Structure/Total number of floors,” “Land area” and “Gross floor area” are as described in the property registry.
As for “Structure/Total number of floors,” the following abbreviations are used.
RC: Reinforced concrete; SRC: Steel frame and reinforced concrete; S: Steel frame;
B: Number of basement floor; F: Number of floor above ground level(Note 3) “Land area” and “Gross floor area” indicate the area of the entire site and the total area floor of the entire building based on thedescription of the property registry, regardless of the form of ownership.
(Note 4) “Form of ownership” is the type of rights, where “O” represents ownership rights, “C” represents a co-ownership interest inownership rights, “CO” represents compartmentalized ownership of exclusive portion of a building, and “L” represents leasehold
rights.
(Note 5) “Appraisal value at the end of fiscal period” for properties except for ARK Hills South Tower is the appraisal value as of January
31, 2021 as described in the real estate appraisal report prepared by Japan Real Estate Institute. The figure for ARK Hills South
Tower is the appraisal value as of January 31, 2021 as described in the real estate appraisal report prepared by DAIWA REALESTATE APPRAISAL CO., LTD.
(Note 6) “Percentage of total portfolio acquisition price” is calculated as a percentage of the aggregate acquisition price of the Company’s
portfolio.
(Note 7) Co-ownership interest as a portion of the land use rights.
(Note 8) The land of Akasaka Tameike Tower is composed of the land owned by a third party (parcel number 1705-1) and the land jointly
owned by the trustee and Mori Building Co.,Ltd. (parcel number 1701-1). The trustee’s co-ownership interest ratio of the land(parcel number 1701-1) is approximately 98.6% and the area corresponding to the co-ownership interest ratio is 3,211.94m2. The
same applies hereafter.
(Note 9) “Land area” for Atago Green Hills is the area of the entire land over which land use rights for the building have been establishedpursuant to the rules of the Atago Green Hills Management Meeting.
(Note 10) The land of Atago Green Hills is composed of the land owned by third parties and the land jointly owned by the trustee and Mori
Building Co., Ltd. and leasehold rights and easement jointly owned by the trustee and Mori Building Co., Ltd. The landcorresponding to each building is determined pursuant to the rules of the Atago Green Hills Management Meeting.
(Note 11) The buildings of Atago Green Hills are composed of parts owned by third parties through compartmentalized ownership and otherparts jointly owned by the trustee and Mori Building Co., Ltd. through direct ownership and compartmentalized ownership.
(Note 12) The Company owns 25% co-ownership interest of the building and the site.
(Note 13) The land of Holland Hills Mori Tower is composed of the land owned by the Tokyo Metropolitan Government (3-802-2 Shibakoen
and 1-224-28 Azabudai) and the land jointly owned by the trustee and Mori Building Co., Ltd. under joint ownership (5-124-1
Toranomon and 3-803-3. Shibakoen). The trustee’s co-ownership interest ratio of the land (5-124-1 Toranomon and 3-803-3.
Shibakoen) is approximately 62.9% and the area corresponding to the co-ownership interest ratio is 1,910.96m2. The same applies
hereafter.
(Note 14) As Roppongi First Plaza and Roppongi View Tower are on the same site and are described in the property registry as one building
owned through compartmentalized ownership, the land area and the gross floor area for these properties are added together. The
land corresponding to each building has been determined pursuant to its management rules and is owned in the land use rights
ratio.
(Note 15) Roppongi First Plaza and Roppongi View Tower are described in the property registry as one building owned throughcompartmentalized ownership. 42 residential units out of the total of 90 residential units in Roppongi First Plaza are owned throughcompartmentalized ownership. 92 residential units out of the total of 202 residential units in Roppongi View Tower are owned
through compartmentalized ownership.

35

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021(ii) Overview of Lease Conditions (as of January 31, 2021)
Total leasable
area

Total leased
area

Annualcontracted rent

Security
deposits(m2)(Note 2)(m2)
(Note 2)

(millions of yen)
(Note 5)(millions of yen)
(Note 6)

Fixed-rent
master lease

43,041.54

43,041.54

100.0

1

5,886

4,905

ARK Mori Building

Fixed-rent
master lease

24,588.43

24,588.43

100.0

1

2,702

2,241

O-4

Koraku Mori Building

Pass-throughmaster lease

16,195.42

16,097.43

99.4

23

1,367

1,373

O-6

Akasaka Tameike Tower

Pass-throughmaster lease

19,790.68

18,638.11

94.2

129

1,594

1,152

O-7

Atago Green Hills

Fixed-rent
master lease

29,667.58

29,667.58

100.0

1

2,024

1,349

O-8

ARK Hills South Tower

Pass-throughmaster lease

8,999.75

8,495.97

94.4

43

990

908

O-9

Toranomon Hills Mori
Tower

Fixed-rent
master lease

16,360.16

16,360.16

100.0

1

2,078

1,732

O-10

Holland Hills Mori Tower

Pass-throughmaster lease

10,165.04

10,165.04

100.0

23

1,084

969

R-3

Roppongi First Plaza

Pass-throughmaster lease

2,956.77

2,856.57

96.6

40

175

63

R-4

Roppongi View Tower

Pass-throughmaster lease

4,515.25

4,204.88

93.1

85

208

53

S-1

Laforet Harajuku (Land)

Business-use
fixed-term
land lease

2,565.06

2,565.06

100.0

1

1,335

－

178,845.68

176,680.77

98.8

348

19,45014,751

Property
number

Property nameO-0

Roppongi Hills Mori Tower

O-1

Total

Type of lease(Note 1)

Occupancy
Number ofratetenants(%)(Note 3)(Note 4)(Note 1) We treat as a fixed-rent master lease when we grant the authority to lease the property to other co-owner and receive a fixed amountin consideration. The same applies hereafter.
(Note 2) “Total leasable area” is the area of the space deemed to be available for the end-tenants. In the case where we lease the entire space
to any one tenant in the form of a fixed-rent master lease or where we grant the authority to lease the property to other co-owner
and a fixed amount is paid to us in consideration of such granting, such tenant or co-owner is deemed to be the end-tenant. The
same applies hereafter. “Total leased area” is equivalent to total floor area of leased space set out in the lease agreements, etc. withthe end-tenants. In the case of Koraku Mori Building, Atago Green Hills and Toranomon Hills Mori Tower, this indicates 80%, 74%
and 67% of the proportionate ownership ratio, respectively, of the foregoing total leasable area and total leased area, which isrounded off to two decimal places. In the case of ARK Hills South Tower, it indicates 25% of co-ownership interest ratio of the total
leasable area and total leased area of the building, which is rounded off to two decimal places. In the case of Akasaka TameikeTower, the office and shop portions are calculated by multiplying Total leasable area and Total leased area concerning the privateuse areas of sectional ownership owned by the trustee, the Asahi Shimbun Company and Mori Building Co., Ltd (all of the relevant
portions under these uses) by the distribution ratio for the trust beneficiary interest owned by Mori Hills REIT Investment
Corporation (ratio stated in the agreement to amend building lease agreement concluded on July 29, 2016) (65.9%), and theresidential portion is calculated by multiplying Total leasable area and Total leased area concerning the private-use areas ofsectional ownership owned by the trustee and the Asahi Shimbun Company (128 units) by the distribution ratio for the trust
beneficiary interest owned by Mori Hills REIT Investment Corporation (ratio stated in the agreement to amend building leaseagreement concluded on January 6, 2016) (67%), and is indicated by rounding off to two decimal places. The same applies hereafter.
The total leasable area and total leased area do not include the area of storage space, flat parking lots and machinery, etc. The same
applies hereafter.
(Note 3) “Occupancy rate” is calculated by dividing the total leased area for each property by the total leasable area of the property. The
total indicates the ratio of the aggregate total leased area for all properties to the aggregate total leasable area for all properties.
(Note 4) “Number of tenants” is computed by counting the number of tenants as to the properties with fixed-rent master lease agreementand Laforet Harajuku (Land) as one. As for other properties, in the case of offices and shops, any one tenant which occupies morethan one leased premise within the same property shall be counted as one, and in the case of residence, each residential unit shallbe counted as one. The same applies hereafter.

36

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021
(Note 5) “Annual contracted rent” for each property is calculated by multiplying the monthly rent provided in the relevant lease agreement,
etc. with the end-tenant (which shall be the monthly rent after a free rent period if a free rent period has been established at the
beginning of the lease period, or the amount charged to the end-tenants during the period from January 1, 2021 to January 31,
2021 if a percentage rent is adopted) by 12. In the case of Koraku Mori Building, Atago Green Hills and Toranomon Hills Mori
Tower, this indicates 80%, 74% and 67% (i.e., the ownership ratio), respectively, of the amount so calculated. In the case of ARK
Hills South Tower, it indicates the 25% co-ownership interest ratio of the annual contracted rent. In the case of Akasaka TameikeTower, the office and shop portions are calculated by multiplying annual contracted rent from the private-use areas of sectional
ownership owned by the trustee, the Asahi Shimbun Company and Mori Building Co., Ltd (all of the relevant portions under theseuses) by the distribution ratio for the trust beneficiary interest owned by Mori Hills REIT Investment Corporation (65.9%), and theresidential portion is calculated by multiplying annual contracted rent from the private-use areas of sectional ownership owned by
the trustee and the Asahi Shimbun Company (128 units) by the distribution ratio for the trust beneficiary interest owned by Mori
Hills REIT Investment Corporation (67%). The same applies hereafter.
(Note 6) “Security Deposits” indicates the remaining amount of the security deposit set forth in the relevant lease agreement, etc. with theend-tenant. With regard to Roppongi View Tower, this indicates the amount set forth in the lease agreement with Mori Building
Co., Ltd., as master lessee. In the case of Koraku Mori Building, Atago Green Hills and Toranomon Hills Mori Tower, this indicates
80%, 74% and 67% (i.e., the ownership ratio), respectively, of such remaining amount of the security deposit. In the case of ARK
Hills South Tower, it indicates the 25% co-ownership interest ratio of the security deposits. In the case of Akasaka Tameike Tower,
the office and shop portions are calculated by multiplying security deposits from the private-use areas of sectional ownership ownedby the trustee, the Asahi Shimbun Company and Mori Building Co., Ltd (all of the relevant portions under these uses) by the
distribution ratio for the trust beneficiary interest owned by Mori Hills REIT Investment Corporation (65.9%), and the residential
portion is calculated by multiplying security deposits from the private-use areas of sectional ownership owned by the trustee andthe Asahi Shimbun Company (128 units) by the distribution ratio for the trust beneficiary interest owned by Mori Hills REIT
Investment Corporation (67%). The same applies hereafter.

37

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021(iii) Overview of Lease to Major Tenant
The following table provides certain information regarding a key tenant, which leases 10% or more of
the total leased area for the properties in the Company’s portfolio as of January 31, 2021 and a briefsummary of the lease conditions for such tenant.
TenantnameBusiness
type

Property
name

Roppongi
Hills
Mori Tower

ARK
Mori Building

Mori
Building
Co., Ltd.

Real
estatebusiness

Koraku Mori
Building

AnnualSecurity
contracted
Deposits
rent(millions of(millions of
yen)
yen)

5,886

2,702

1,367

4,905

2,241

1,373

Leasedarea(m2)(Note 1)43,041.54

24,588.43

16,097.43

Percentage of
total leasedarea(%)(Note 2)

24.4

13.9

9.1

Lease
expiration
date

Lease
renewal

Notes

Jul. 31,
2021

Auto-renewed
every 5 years

23/24 floors

Sep. 30,
2023

Auto-renewed
every 5 years

19/22 floors

Jul. 31,2024

Auto-renewed
every 5 years

20 floor

Sep. 30,
2025

Auto-renewed
every 5 years

28 floor

Jan. 31,
2021

Auto-renewed
every 5 years

25 floor

Mar. 31,
2021

Auto-renewed
every 5 years 26/27/29 floors

Jan. 31,
2021

Auto-renewed
every 5 years

13 floor

Jan. 31,
2021

Auto-renewed
every 5 years

12/22 floors

Jan. 31,
2021

Auto-renewed
every 5 years

23/25 floors

Jan. 31,
2021

Auto-renewed
every 5 years

4/15/24 floors

Mar. 31,2023

1 floor/Basement
1 through 4/
Auto-renewed
The area used as
every 5 years
district heating
and coolingMar. 3,2023

Fixed-term
leaseMar. 31,2026
AkasakaTameike
Tower

1,594

1,152

18,638.11

10.5
Mar. 31,
2021

Total

－

Office and shop
areas
Auto-renewed(including
every 5 years parts of storage
areas, parking
lots, etc.)
Residentialarea
Auto-renewed(including
every 5 years
parts ofparking lots,etc.)

Atago Green
Hills

2,024

1,349

29,667.58

16.8

Apr. 30,
2022

Auto-renewed
every 5 years－

ARK Hills
South Tower

990

908

8,495.97

4.8

Jul. 31,2034

Auto-renewed
every year－

Toranomon
Hills Mori
Tower

2,078

1,732

16,360.16

9.3

Jul. 31,2022

Auto-renewed
every 5 years－

Holland Hills
Mori Tower

1,084

969

10,165.04

5.8

Jul. 31,2032

Auto-renewed
every 10 years－

Roppongi
First Plaza

175

63

2,856.57

1.6

Mar. 3,2023

Fixed-term
lease

－

Roppongi
View Tower

208

53

4,204.88

2.4

Mar. 3,2023

Fixed-term
lease

－

18,114

14,751

174,115.71

98.5

38

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021
(Note 1) “Leased area” is equivalent to floor area of leased space set out in the lease agreement, etc. with the end-tenant. In the case of
Koraku Mori Building, Atago Green Hills and Toranomon Hills Mori Tower, this indicates 80%, 74% and 67% of the proportionate
ownership ratio, respectively, of the foregoing leased area, which is rounded off to two decimal places. In the case of ARK Hills
South Tower, it indicates 25% of co-ownership interest ratio of the leased area of the building, which is rounded off to two decimal
places. In the case of Akasaka Tameike Tower, the office and shop portions are calculated by multiplying leased area from theprivate-use areas of sectional ownership owned by the trustee, the Asahi Shimbun Company and Mori Building Co., Ltd (all of therelevant portions under these uses) by the distribution ratio for the trust beneficiary interest owned by Mori Hills REIT Investment
Corporation (65.9%), and the residential portion is calculated by multiplying leased area from the private-use areas of sectional
ownership owned by the trustee and the Asahi Shimbun Company (128 units) by the distribution ratio for the trust beneficiaryinterest owned by Mori Hills REIT Investment Corporation (67%), and is indicated by rounding off to two decimal places. The leased
area does not include the area of storage space, flat parking lots, and machinery, etc.
(Note 2) “Percentage of total leased area” indicates the ratio of the total leased area of each property to the aggregate total leased area for
all properties held by the Company as of January 31, 2021. The same applies hereafter.

(iv) Five Largest Tenants
The following table shows the Company’s five largest tenants by leased area for the Company’s
properties as of January 31, 2021.
Name of end tenant

Property nameMori Building Co., Ltd.

Roppongi Hills Mori Tower
ARK Mori Building
Koraku Mori Building
Atago Green Hills
ARK Hills South Tower
Toranomon Hills Mori Tower

Mylan Seiyaku Ltd.

Leasedarea(m2)(Note 1)

Percentage of
total portfolio(%)(Note 2)

113,996.81

64.5

Holland Hills Mori Tower

3,458.53

2.0

Mitsubishi UFJ Research and Consulting Co.,Ltd.

Holland Hills Mori Tower

3,436.90

1.9

Mori Building Ryutsu System Co., Ltd.

Laforet Harajuku (Land)2,565.06

1.5

ITOCHU Techno-Solutions Corporation

Koraku Mori Building

2,116.88

1.2

125,574.18

71.1

Total for top 5 end tenants(Note 1) “Leased area” is equivalent to floor area of leased space set out in the lease agreement, etc. with the end-tenant. In the case of
Koraku Mori Building, Atago Green Hills and Toranomon Hills Mori Tower, this indicates 80%, 74% and 67% of the proportionate
ownership ratio, respectively, of the foregoing leased area, which is rounded off to two decimal places. In the case of ARK Hills
South Tower, it indicates 25% of co-ownership interest ratio of the leased area of the building, which is rounded off to two decimal
places. The leased area does not include the area of storage space, flat parking lots, and machinery, etc.
(Note 2) “Percentage of total portfolio” indicates the ratio of the leased area attributable to each end-tenant to the aggregate total leased
area for all properties held by the Company as of January 31, 2021. The same applies hereafter.

39

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021(v) Overview of Lease to Interested Parties
The following table provides an overview of lease to the end-tenants who are interested parties for theproperties held by the Company as of January 31, 2021.
Name ofend
tenantName ofoccupied property

Roppongi Hills
Mori Tower

Leasedarea(m2)

43,041.54

Percentage
Annualofcontracted
total
rent
portfolio (thousands(%)
of yen)24.4

Koraku Mori
Building

Mori
Building
RyutsuSystemCo., Ltd.

24,588.43

13.9

Lease renewal

Type of lease

Notes

Jul. 31,
2021

Auto-renewed
every 5 years

Fixed-rent
master lease23/24 floors

Sep. 30,
2023

Auto-renewed
every 5 years

Fixed-rent
master lease19/22 floors

Jul. 31,2024

Auto-renewed
every 5 years

Fixed-rent
master lease

20 floor

Sep. 30,
2025

Auto-renewed
every 5 years

Fixed-rent
master lease28 floor

Jan. 31,
2021

Auto-renewed
every 5 years

Fixed-rent
master lease

25 floor

Mar. 31,
2021

Auto-renewed
every 5 years

Fixed-rent
master lease26/27/29 floors

Jan. 31,
2021

Auto-renewed
every 5 years

Fixed-rent
master lease

13 floor

Jan. 31,
2021

Auto-renewed
every 5 years

Fixed-rent
master lease12/22 floors

Jan. 31,
2021

Auto-renewed
every 5 years

Fixed-rent
master lease23/25 floors

Jan. 31,
2021

Auto-renewed
every 5 years

Fixed-rent
master lease

4/15/24 floors

5,886,901

Mori
Building
Co., Ltd.
ARK Mori
Building

Lease
expirationdate

2,702,973

Mar. 31,2023

Auto-renewed
every 5 years

Fixed-rent
master lease

1 floor/Basement
1 through 4/
The area used as
district heating
and cooling

292.220.2－Mar. 31,2022－

Memorandum
on self-use－

Atago Green Hills

29,667.58

16.8

2,024,640

Apr. 30,
2022

Auto-renewed
every 5 years

Fixed-rent
master lease－

ARK Hills South
Tower

46.88

0.0

6,000

May 16,
2021－

Memorandum
on self-use－

Toranomon Hills
Mori Tower

16,360.16

9.3

2,078,558

Jul. 31,2022

Auto-renewed
every 5 years

Fixed-rent
master lease－

Laforet Harajuku(Land)

2,565.06

1.5

1,335,600

Sep. 14,2030－

Business-use
fixed-term
land lease－

116,561.87

66.0

14,034,673

Total

40

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021(vi) Overview of Properties
The following table provides an overview of the properties for which annual contracted rent accounts
for 10% or more of the total annual contracted rent for properties held by the Company as of January 31,
2021.
Annualcontracted rent
(millions of yen)

Percentage ofannual contracted
rent(%)(Note 1)

Total leasable
area
(m2)

Total leased
area
(m2)

Occupancy
rate(%)(Note 2)

Numberoftenants

Roppongi Hills Mori Tower

5,886

30.3

43,041.54

43,041.54

100.0

1

O-1

ARK Mori Building

2,702

13.9

24,588.43

24,588.43

100.0

1

O-9

Toranomon Hills Mori Tower

2,078

10.7

16,360.16

16,360.16

100.0

1

O-7

Ata
go Green Hills

2,024

10.4

29,667.58

29,667.58

100.0

1

12,693

65.3

113,657.71

113,657.71

100.0

4

Property
number

Property name

O-0

Total

(Note 1) This indicates the ratio of the annual contracted rent for each property to the aggregate total annual contracted rent for allproperties held by the Company as of January 31, 2021.
(Note 2) “Occupancy rate” is calculated by dividing the total leased area for each property by the total leasable area of the property. The
total indicates the ratio of the aggregate total leased area for all properties to the aggregate total leasable area for all properties.

41

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021(vii) Overview of Matters Concerning Design, Etc.
The following table provides the designers, structural designers, contractors, building verification
agencies and structural examination agencies for properties held by the Company as of January 31, 2021.
Building
verification
agencyStructural
examination
agency(Note)

Property
number

Property
name

Designer

Structural designer

Contractor

O-0

Roppongi
Hills
Mori Tower

Mori Building Co., Ltd.,first class architect office,and Irie Miyake Architects& EngineersMori Building Co., Ltd.,first class architect office,and Kozo Keikaku
Engineering Inc.

Consortium of
Obayashi Corporation
andKajima CorporationTokyo
The Building
Metropolitan
Center of Japan
Government

O-1

ARK
Mori
Building

Mori Building Co., Ltd.,first class architect office,and Irie Miyake Architects& EngineersMori Building Co., Ltd.,first class architect office,and Irie Miyake Architects& Engineers

Consortium of
Kajima Corporation,
Toda Corporation andFujita Engineering
Co. Ltd.

Tokyo
The Building
Metropolitan
Center of Japan
Government

O-4

KorakuMori
Building

Mori Building Co., Ltd.,first class architect office,and GKK Architects &EngineersMori Building Co., Ltd.,first class architect office,and Orimoto StructuralEngineers

Consortium of
Shimizu Corporation
andSato Kogyo Co., Ltd.

Tokyo
The Building
Metropolitan
Center of Japan
Government

O-6

AkasakaTameikeTower

Shimizu Corporation,
first class architect officeShimizu Corporation,
first class architect office

Consortium ofTokyo
Shimizu Corporation
The Building
Metropolitan
andCenter of Japan
Government
Takenaka Corporation(office building /residentialbuilding)
The Building
Center of Japan(retail building)Tokyo
Metropolitan
Government

Atago
Green
Hills

Mori Building Co., Ltd.,first class architect office,and Irie Miyake Architects& EngineersMori Building Co., Ltd.,first class architect office,and Kozo Keikaku
Engineering Inc.

(office building /retail building)
Consortium of
Takenaka Corporation Tokyo
Metropolitan
and Kumagai Gumi
Government
Co., Ltd.
(residential building)Toda Corporation

O-8

ARK Hills
South
Tower

Mori Building Co., Ltd.,first class architect officeand Irie Miyake Architects& EngineersMori Building Co., Ltd.,first class architect office,Irie Miyake Architects &Engineers andShimizu Corporation,
first class architect officeShimizu Corporation

The Building
The Building
Center ofCenter of Japan
Japan

O-9

Toranomon
Hills Mori
Tower

Nihon Sekkei, Inc.

Nihon Sekkei, Inc. andObayashi Corporation firstclass architect office

Obayashi Corporation

The Building
The Building
Center ofCenter of Japan
Japan

O-10

Holland
Hills Mori
Tower

Yamashita Sekkei, Inc.

Yamashita Sekkei, Inc.

Obayashi CorporationTokyo
The Building
Metropolitan
Center of Japan
Government

R-3

Roppongi
First Plaza

R-4

Roppongi
View Tower

Consortium of
Urban Renaissance Agency, Urban Renaissance Agency,
Shimizu Corporation
and Irie Miyake Architects and Kozo Keikaku
and& Engineers
Engineering Inc.
ANDO CorporationTokyo
The Building
Metropolitan
Center of Japan
Government

O-7(Note)

With regard to structures constructed by special structural methods, such as super high-rise structures or seismic isolated
structures, a structural evaluation involving a more detailed examination than general standards must be obtained pursuant tobuilding standards laws and regulations (performance assessment under the Building Standards Act from 2000). In addition, there
are cases where it is obtained in accordance with the instructions, etc. of administrative authorities.

42

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

(viii) Overview of Engineering Reports
The Company engages an engineering firm to investigate the status of the building (including
earthquake risk analysis) and obtains an engineering report from the firm for each property. The following
table shows the status of properties held by the Company as of January 31, 2021. “Estimated amount ofemergency repair expenses” is the emergency repair expenses estimated by the engineering firm.
“Estimated amount of long-term repair expenses” is the annual average amount of repair and renovation
expenses over a period of 15 years estimated by the engineering firm.
The report provides a mere opinion of the engineering firm and no guarantee is provided as to theaccuracy of the opinion.
No earthquake insurance has been taken out for properties held by the Company.

Property
number

Property name

Estimated amountof long-term
Estimated amount
repair expenses
PML
Preparationof emergency(thousands of yen)(%)
daterepair expenses(Note 1)(Note 2) (Note 6)(thousands of yen)
(Note 3)(Note 4)(Note 5)(Note 5)

Engineering firm

O-0

Roppongi Hills Mori Tower

Jan. 2021－

81,196

0.59

Tokyo Bldg-Tech Center
Co., Ltd.

O-1

ARK Mori Building

Dec. 2017－

104,793

0.78

Tokyo Bldg-Tech Center
Co., Ltd.

O-4

Koraku Mori Building

Jan. 2017－61,275

0.73

Tokyo Bldg-Tech Center
Co., Ltd.

O-6

Akasaka Tameike Tower

Jan. 2017－47,412

1.79

Tokyo Bldg-Tech Center
Co., Ltd.

－140,220

2.35－

75,281

2.34

－

3,104

5.94

MORI Tower(office building)
O-7

Atago
Green
Hills

Forest Tower(residential building)Jan. 2018

Plaza(retail building)

Tokio Marine & Nichido
Risk Consulting Co.,
Ltd.

O-8

ARK Hills South Tower

Jul. 2019－

33,905

1.56

Tokio Marine & Nichido
Risk Consulting Co.,
Ltd.

O-9

Toranomon Hills Mori Tower

Jul. 2020－

13,8490.50

Tokyo Bldg-Tech Center
Co., Ltd.

O-10

Holland Hills Mori Tower

Jun. 2018－

48,211

0.85

Tokyo Bldg-Tech Center
Co., Ltd.

R-3

Roppongi First Plaza

Jan. 2017

－

7,310

2.20

Tokyo Bldg-Tech Center
Co., Ltd.

R-4

Roppongi View Tower

Jan. 2017－

10,906

2.20

Tokyo Bldg-Tech Center
Co., Ltd.

S-1

Laforet Harajuku (Land) (Note 7)

－

－

－

－

－

627,462

0.91

Total

－

(Note 1) With regard to Roppongi Hills Mori Tower, this amount is calculated by multiplying the estimated amount for the entire property
by the percentage share of the costs pertaining to the portion in trust provided under the Roppongi Hills Mori Tower Management
Rules.
(Note 2) With regard to ARK Mori Building, this amount is calculated by multiplying the estimated amount for the entire property by thepercentage share of the costs pertaining to the portion in trust pursuant to the ARK Mori Building Management Rules.
(Note 3) With regard to Atago Green Hills, this amount is calculated by multiplying the estimated amount for the entire property in eachbuilding by the percentage share of the costs pertaining to the Company’s share in the trust beneficiary interest pursuant to the
Atago Green Hills Management Rules.
(Note 4) With regard to ARK Hills South Tower, this amount is calculated by multiplying the estimated amount for the entire property by
the co-ownership interest ratio.
(Note 5) With regard to Toranomon Hills Mori Tower, this amount is calculated by multiplying the estimated amount for the entire realestate in trust by the quasi co-ownership ratio for the trust beneficiary interest owned the Company.
(Note 6) This indicates the figure described in the “Report on evaluation of seismic PML for portfolio” dated July 13, 2020 by Sompo Risk
Management Inc.
(Note 7) With regard to Laforet Harajuku (Land), no investigation is implemented because the Company does not hold any buildings, etc.

43Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021(ix) Status of Capital Expendituresi) Status of Implementation of Capital Expenditures
The following table shows the major construction work falling under the category of capital
expenditures that were conducted during the twenty-ninth fiscal period. Capital expenditures during
the twenty-ninth fiscal period amounted to 240 million yen for the entire portfolio and, combinedwith 65 million yen in maintenance and repairs and 2 million yen in construction management fees
charged to expenses for the twenty-ninth fiscal period, construction work in a total amount of 307
million yen was implemented.
Name of real estate, etc.
(Location)

ARK Mori Building(Minato-ku, Tokyo)

Koraku Mori Building(Bunkyo-ku, Tokyo)
Akasaka Tameike Tower(Minato-ku, Tokyo)
Atago Green Hills(Minato-ku, Tokyo)

Other

Purpose

PeriodAmount of capital expenditures(millions of yen)

Air-conditioning monitoring and control
system upgrading work

From: Dec. 2020
To: Jan. 2021

12

Elevator upgrading work

From: Apr. 2020
To: Jan. 2021

16

Sprinkler upgrading work in exclusive area

From: Jul. 2020
To: Aug. 202016

Air balance unit upgrading work in
exclusive area

From: Aug. 2020
To: Oct. 202025

Air-conditioning facility device upgrading
work

From: Aug. 2020
To: Jan. 2021

25

Residential unit home appliances upgrading
work

From: Aug. 2020
To: Jan. 2021

12

Office building window side air conditioner
upgrading work

From: Jul. 2020
To: Sep. 202031

Office building LED installation of lights in
exclusive area

From: Jul. 2020
To: Sep. 2020

10

－

90

－
Entire portfolio(Note)

240

The projects shown above are those for which capital expenditure exceeds 10 million yen per project.

44

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

ii) Schedule of Capital Expenditures
The following table shows the amounts of capital expenditures conducted after the end of thetwenty-ninth fiscal period and the expected amounts of capital expenditures associated with the
major renovation construction work, etc. planned as of the date of this document for properties heldby the Company as of January 31, 2021. A portion of the total “Expected amount of capital
expenditures” detailed below may be treated as expenses for accounting purposes depending on theform of construction work.
Expected amount of capital
expenditures(millions of yen)
Name of real estate, etc.
(Location)

Roppongi Hills Mori
Tower
(Minato-ku, Tokyo)

ARK Mori Building(Minato-ku, Tokyo)

Koraku Mori Building(Bunkyo-ku, Tokyo)

PurposeScheduled period
TotalamountAmount paid
during thetwenty-ninth
fiscal period

Totalamountalreadypaid

Work to upgrade steam piping

From: Jun. 2020
To: Mar. 2021

14

－

－

Toilet upgrading work

From: Apr. 2020
To: Mar. 2021

212

－

－

Sprinkler upgrading work in common
area

From: Apr. 2020
To: Mar. 2021

23

－

－

Work to upgrade video system

From: Apr. 2020
To: Mar. 2021

16

－

－

Security system upgrading work

From: Apr. 2020
To: Mar. 2021

37

－

－

Air-conditioning monitoring and control
system upgrading work

From: Apr. 2020
To: Mar. 2021

12

－

－

Electrical monitoring and control
system upgrading work

From: Apr. 2020
To: Mar. 2021

36

－

－

Work to upgrade VAV automatic
control equipment in exclusive area

From: Jun. 2020
To: Mar. 2022

206

－

－

LED installation of lights in exclusivearea

From: Jun. 2020
To: Mar. 2022

233

－

－

Work to upgrade lighting operationequipment in exclusive area

From: Jun. 2020
To: Mar. 2022

39

－

－

Installation of LED guide lights in
exclusive area

From: Apr. 2021
To: Mar. 2022

19

－

－

LED installation of lights in common
area for each floor

From: Apr. 2021
To: Mar. 2022

13

－

－

Installation of LED guide lights incommon hallway

From: Apr. 2021
To: Mar. 2022

19

－

－

Remodeling work for common areas oflower floors

From: Jul. 2020
To: Mar. 2021

11

－

－

Repair work for fire-resistant coveringof machine room rea

From: Jul. 2020
To: Mar. 2021

23

－

－

LED installation of lights in common
area for each floor

From: Sep. 2021
To: Mar. 2022

11

－

－

LED installation of lights in exclusivearea

From: Mar. 2021
To: May. 2021

10

－

－

Work to renew mechanical parking
equipment

From: Apr. 2021
To: Jun. 2021

13

－

－

Air balance unit upgrading work in
exclusive area

From: Mar. 2021
To: Jul. 2021

35

－

－

LED installation of lights for common
area

From: Dec. 2020
To: Feb. 2021

10

－

－

45

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021
Expected amount of capital
expenditures(millions of yen)
Name of real estate, etc.
(Location)

Akasaka Tameike Tower(Minato-ku, Tokyo)

Atago Green Hills(Minato-ku, Tokyo)

Holland Hills Mori Tower(Minato-ku, Tokyo)

Roppongi View Tower(Minato-ku, Tokyo)

PurposeScheduled period
TotalamountAmount paid
during thetwenty-ninth
fiscal period

Totalamountalready
paid

Residential balcony planting
renovation work

From: Feb. 2021
To: Jul. 2022

22

－

－

Work to upgrade disaster prevention
equipment

From: Oct. 2020
To: Feb. 2021

96

－

－

Residential unit remodeling work

From: Feb. 2021
To: Jul. 2022

28

－

－

Residential unit home appliances
upgrading work

From: Feb. 2021
To: Jul. 2022

46

－

－

Air balance unit upgrading work in
exclusive area

From: Feb. 2021
To: Jul. 2022

75

－

－

LED installation of lights for office
exclusive area

From: Feb. 2021
To: Jul. 2022

38

－

－

Work to implement safety measures formechanical parking

From: Feb. 2021
To: Dec. 2021

41

－

－

Work to change mechanical parking
control

From: Sep. 2021
To: Dec. 2021

36

－

－

Office building LED installation oflights in common area

From: Jun. 2020
To: Feb. 2021

28

－

－

Work to support the visually impairedin the office building

From: Oct. 2020
To: Mar. 2021

12

－

－

Residential building standard floor hallinterior upgrading work

From: Oct. 2019
To: Mar. 2021

80

－

－

Power source installation work forresidential building in order to charge
electric vehicles in the parking lot

From: Aug. 2020
To: Feb. 2021

10

－

－

Security system upgrading work

From: Mar. 2021
To: Mar. 2021

32

－

－

Central monitoring and control system
upgrading work

From: Mar. 2021
To: Mar. 2021

17

－

－

Upgrade work for water heater room

From: Feb. 2021
To: Mar. 2021

12

－

－

LED installation of lights for office
exclusive area

From: Jul. 2021
To: Aug. 2021

26

－

－

Residential unit remodeling work

From: Feb. 2021
To: Jul. 2021

15

－

－

(Note) The projects shown are those for which the expected amount exceeds 10 million yen per project.

46

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

Main ty46pe ofuseb) Overview of Trust Beneficiary Interest

Property
numberO-0

Office buildings

Premium

O-1

Property nameRoppongi Hills Mori
Tower

ARK Mori Building

Premium

O-4

Koraku Mori Building

Premium

O-6

O-8

Trust
establishment
date

Trust
maturity
date

Notes

Sumitomo Mitsui
Trust Bank, Ltd.

Aug. 1, 2011

Jul. 31, 2026

Trust beneficiary interest incompartmentalized ownership for23rd and 24th floor portions

Sumitomo Mitsui
Trust Bank, Ltd.

Oct. 1, 2013

Sep. 30, 2028

Trust beneficiary interest incompartmentalized ownership for
19th and 22nd floor portions

Sumitomo Mitsui
Trust Bank, Ltd.

Aug. 1, 2014

Jul. 31, 2029

Trust beneficiary interest incompartmentalized ownership for20th floor portion

Sumitomo Mitsui
Trust Bank, Ltd.

Sep. 16, 2015

Sep. 15, 2030

Trust beneficiary interest incompartmentalized ownership for28th floor portion

Sumitomo Mitsui
Trust Bank, Ltd.

Feb. 1, 2016

Jan. 31, 2031

Trust beneficiary interest incompartmentalized ownership for25th floor portion

Mitsubishi UFJ Trustand Banking Corporation

Apr. 1, 2016

Mar. 31, 2036

Trust beneficiary interest incompartmentalized ownership for
26th, 27th and 29th floor portions

Mizuho Trust & Banking
Co., Ltd.

Mar. 22, 2006

Mar. 31, 2026

Trust beneficiary interest incompartmentalized ownership for13th floor portion

Mizuho Trust & Banking
Co., Ltd.

Mar. 28, 2008

Mar. 31, 2026

Trust beneficiary interest incompartmentalized ownership for12th and 22nd floor portions

Mizuho Trust & Banking
Co., Ltd.

Mar. 18, 2011

Mar. 31, 2026

Trust beneficiary interest incompartmentalized ownership for23rd and 25th floor portions

Sumitomo Mitsui
Trust Bank, Ltd.

Aug. 1, 2011

Jul. 31, 2026

Trust beneficiary interest incompartmentalized ownership for
4th, 15th and 24th floor portions
Trust beneficiary interest incompartmentalized ownership forthe area used as district heating
and cooling on the 1st floor andthe 1st through 4th floor below
ground portions
Trust beneficiary interest
representing 80% interest in theassets in trust;
Trust beneficiary interest
representing the remaining 20%
interest in the assets in trust isheld by Mori Building Co., Ltd.

Sumitomo Mitsui
Trust Bank, Ltd.

Apr. 1, 2013

Mar. 31, 2028

Sumitomo Mitsui
Trust Bank, Ltd.

Mar. 4, 2003

Mar. 3, 2023

Sumitomo Mitsui
Trust Bank, Ltd.

Sep. 30, 2008

Mar. 31, 2026

Trust beneficiary interest in officeand shop areas (including parts ofstorage areas, parking lots, etc.)

Sumitomo Mitsui
Trust Bank, Ltd.

Mar. 18, 2011

Mar. 31, 2026

Trust beneficiary interest in
residential area (including parts ofparking lots, etc.)

Atago Green Hills

Mitsubishi UFJ Trustand Banking Corporation

May 1, 2012

Apr. 30, 2027

Trust beneficiary interest
representing 74% interest in theassets in trust;
Trust beneficiary interest
representing the remaining 26%
interest in the assets in trust isheld by Mori Building Co., Ltd.

ARK Hills South Tower

Mitsubishi UFJ Trustand Banking Corporation

Aug. 1, 2014

Jul. 31, 2034

Trust beneficiary interest in the
25% co-ownershipPremium

Premium

TrusteeAkasaka Tameike Tower

PremiumO-7(as of January 31, 2021)

47

Office buildings

Main type of use

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

Property
numberO-9
Premium

O-10

Residential properties

Premium

R-3
Premium

R-4

Property nameTrustestablishment
date

TrusteeTrustmaturity
date

Notes

Trust beneficiary interest
representing 67% interest in theassets in trust;
Trust beneficiary interest
representing the remaining 33%
interest in the assets in trust isheld by Mori Building Co., Ltd.
Trust beneficiary interest incompartmentalized ownership for3rd-4th, part of the 5th, 14-18thand 22nd-24th floor portions

Toranomon Hills Mori
Tower

Mitsubishi UFJ Trustand Banking Corporation

Jun. 26, 2014

Jul. 31, 2037

Holland Hills Mori Tower

Sumitomo Mitsui
Trust Bank, Ltd.

Aug. 1, 2017

Jul. 31, 2032

Roppongi First Plaza

Sumitomo Mitsui
Trust Bank, Ltd.

Mar. 4, 2003

Mar. 3, 2023－

Sumitomo Mitsui
Trust Bank, Ltd.

Mar. 4, 2003

Mar. 3, 2023

Trust beneficiary interest incompartmentalized ownership for
80 units in Roppongi View Tower

Sumitomo Mitsui
Trust Bank, Ltd.

Mar. 22, 2006

Mar. 3, 2023

Trust beneficiary interest incompartmentalized ownership for
12 units in Roppongi View Tower

Roppongi View Tower

48

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021c) Status of Portfolio(i) Investment Ratio by Property Quality(as of January 31, 2021)

Quality category(Note)

Percentage of total
portfolio acquisition price(%)

Acquisition price(millions of yen)

Number of properties

Premium Properties

10

398,910

99.0

Other Properties

1

4,000

1.0

11

402,910100.0

Portfolio total(Note)For the Premium Properties in the quality category, please refer to “2. Investment Policy; (1) Investment Policy; (B)Management Strategy; (a) Key Strategy; a. Development of Urban Portfolio with Premium Properties at the Core; i.
Investments that Focus on Premium Properties” in the most recent securities report (submitted on October 28, 2020).

(ii) Investment Ratio by Main Type of Use(as of January 31, 2021)

Main type of use

Percentage of total portfolio
acquisition price(%)

Acquisition price(millions of yen)

Number of properties

Office buildings

8

374,990

93.1

Residential properties

2

6,100

1.5

Retail Facility

121,8205.4

11402,910100.0

Portfolio total(iii) Investment Ratio by Region(as of January 31, 2021)

Number ofproperties

RegionTokyo’s five central wards and theirvicinityTokyo
metropolitan
area

Principal
regional cities

Acquisition price(millions of yen)

Percentage of
total portfolio
acquisition price(%)

11402,910100.0

Minato Ward

9353,890

87.8

Bunkyo Ward

1

27,200

6.8

Shibuya Ward

1

21,820

5.4

Tokyo, Kanagawa, Chiba and Saitama
Prefectures

11402,910

100.0

Cities designated by Cabinet Order andtheir equivalent principal cities inJapan other than those located inTokyo metropolitan area

－

－

－

11

402,910100.0

Portfolio total

49

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021(iv) Investment Ratio by Property Age(as of January 31, 2021)

Property age

Acquisition price(millions of yen)

Number of properties

Less than 10 years
Equal to or more than 10
years
but less than 15 years
Equal to or more than 15
years
Portfolio total(Note)

Percentage of total portfolio
acquisition price(%)

2

67,580

17.7

－

－

－

8

313,51082.3

10381,090

100.0

In aggregate calculation, Atago Green Hills is deemed to have been constructed on July 30, 2001, and Laforet Harajuku(Land) falls outside the calculations. The same applies to “(v) Investment Ratio by Property Size” below. The average ageof the properties in the Company’s portfolio, calculated as the weighted average of the building age based on the acquisition
price is 19.5 years which is rounded off to the nearest decimal place.

(v) Investment Ratio by Property Size(as of January 31, 2021)

Property Size
(Note)

Acquisition price(millions of yen)

Number of properties

Equal to or more than
30,000m2
Equal to or more than
10,000m2
but less than 30,000m2
Less than 10,000m2
Portfolio total(Note)

Percentage of total portfolio
acquisition price(%)

8374,990

98.4

2

6,100

1.6

－

－

－

10

381,090

100.0“Property Size” is based on the total floor area of the entire building, regardless of the form of ownership. With regard to
Roppongi First Plaza and Roppongi View Tower, the total floor area for each property is deemed to be 22,906.74 m2 andcalculated as a separate building.

50

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021d) Status of Income and Expenditures(Unit: thousands of yen)

Property number

O-0

O-1

Property nameRoppongi Hills Mori Tower

ARK Mori Building

PeriodTwenty-eighth Twenty-ninth
fiscal period fiscal period
ended
ended
July 2020
January 2021

Difference

Twenty-eighth Twenty-ninth
fiscal period fiscal period
ended
ended
July 2020
January 2021

Difference

Operation days

182 days

184 days

2 days

182 days

184 days

2 daysOccupancy rate

100.0％

100.0％

0.0PT

100.0％

100.0％

0.0PT

Number of tenants

1

1

0

1

1

0

Rent revenues

2,943,450

2,943,450－

1,351,486

1,351,486

－

－

－

－

－

－

－

Total property operating revenue

2,943,450

2,943,450－

1,351,486

1,351,486－

Property management fees

447,868

447,868－

164,853

164,853－

Property taxes (Note 1)

255,651

263,478

7,826

84,23784,968730

Utilities

－

－

－

－

－

－

Maintenance and repairs

－

－

－

355

－

(355)

4,050

4,094

44

1,912

1,933

21

332,052

333,285

1,233

66,946

67,914

968

376

374

(1)

2,789

2,788

(1)

Total property operating expenses

1,039,999

1,049,101

9,102

321,094

322,458

1,364

Property operating income (2)1,903,451

1,894,349(9,102)

1,030,392

1,029,028(1,364)

NOI (3) ((1)+(2))

2,235,503

2,227,635(7,868)1,097,338

1,096,943(395)

Capex (4)272,162－(272,162)

36,50759,337

22,829NCF (3)-(4)1,963,341

2,227,635

264,293

1,060,830

1,037,605(23,225)

Other operating revenues

Insurance premium
Depreciation and amortization (1)Other expenses (Note 2)(Note 1) For property tax, city planning tax and depreciable assets tax, the Company charges the amount of property taxes assessed anddetermined applicable to the fiscal period to property operating expenses. Registered owners of properties in Japan as of January
1 are responsible for paying property taxes for the calendar year based on assessments by local governments. Therefore, registeredowners who sold properties to the Company were liable for property taxes and city planning taxes for the calendar year, including
the period from the date of the acquisition by the Company until the end of the year. The Company reimbursed sellers of properties
for the equivalent amount of property taxes and included the amount in the acquisition cost of real estate.
(Note 2) “Other expenses” denotes the sum of custodian fees, rent expenses, and other lease business expenses (residential property
management costs, and other property-related miscellaneous expenses) in aggregate.
(Note 3) Additionally acquired on September 1, 2020.

51

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021
(Unit: thousands of yen)

Property number

O-4

O-6

Property nameKoraku Mori Building

Akasaka Tameike Tower

PeriodTwenty-eighth Twenty-ninth
fiscal period fiscal period
ended
ended
July 2020 January 2021

Difference

Twenty-eighth Twenty-ninth
fiscal period fiscal period
ended
ended
July 2020
January 2021

Difference

Operation days

182 days

184 days

2 days

182 days

184 days

2 daysOccupancy rate

86.1％

99.4％

13.3PT

95.7％

94.2％

(1.5PT)

22

23

1

135

129

(6)

Rent revenues

644,277

649,547

5,270

791,134

787,242(3,891)Other operating revenues

73,75073,945

195

78,13078,054(76)

Total property operating revenue

718,027

723,493

5,465

869,264

865,297(3,967)

Property management fees

68,962

94,71925,756

167,722

175,610

7,887

Property taxes (Note 1)

32,972

30,774(2,197)43,80442,321(1,482)

Utilities

54,72055,685965

26,74326,094(649)

Maintenance and repairs

31,736

10,773(20,963)

29,02645,061

16,034

Insurance premium

1,661

1,679

18

2,068

2,092

23

Depreciation and amortization (1)97,657

97,199(457)

135,262

127,520(7,742)Other expenses (Note 2)

83,971

83,953(18)

10,624

10,623(0)Total property operating expenses

371,681374,7853,104

415,253429,324

14,071

Property operating income (2)346,346

348,707

2,361

454,011435,972(18,039)

NOI (3) ((1)+(2))

444,003445,907

1,904

589,274

563,492(25,781)Capex (4)149,962

62,364(87,598)

42,05145,212

3,160

NCF (3)-(4)294,040

383,543

89,503547,222518,280(28,942)

Number of tenants52Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021
(Unit: thousands of yen)

Property number

O-7

O-8

Property nameAtago Green Hills

ARK Hills South Tower

PeriodTwenty-eighth Twenty-ninth
fiscal period fiscal period
ended
ended
July 2020 January 2021

Difference

Twenty-eighth Twenty-ninth
fiscal period fiscal period
ended
ended
July 2020 January 2021

Difference

Operation days

182 days

184 days

2 days

182 days

184 days

2 daysOccupancy rate

100.0％

100.0％

0.0PT

100.0％

94.4％(5.6PT)

Number of tenants

1

1

0

44

43

(1)

Rent revenues

1,012,320

1,012,320－

482,942475,084(7,857)－－－

26,51833,3496,831

1,012,320

1,012,320－

509,460

508,434(1,025)

Property management fees

2,664

2,664

－

47,60545,754(1,850)Property taxes (Note 1)

69,23069,503273

35,94436,025

81

Utilities－－－

26,48627,6591,173

Maintenance and repairs

－

－

－

2,346

5,226

2,879

3,627

3,667

39

1,018

1,030

11

Depreciation and amortization (1)185,657

186,107450

44,24544,32378

Other expenses (Note 2)

45,76546,411

646

2,235

1,593

(641)

Total property operating expenses

306,945

308,355

1,410

159,882

161,614

1,731

Property operating income (2)705,374

703,964(1,410)349,578

346,820(2,757)

NOI (3) ((1)+(2))

891,032

890,072(960)

393,823

391,144(2,679)Capex (4)144,950

54,297(90,652)

149

3,352

3,203

NCF (3)-(4)746,081835,774

89,692

393,674

387,792(5,882)Other operating revenues
Total property operating revenue

Insurance premium

53Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021
(Unit: thousands of yen)

Property number

O-9

O-10

Property name

Toranomon Hills Mori Tower

Holland Hills Mori Tower

PeriodTwenty-ninth
Twenty-eighthfiscal period
fiscal period
ended
ended
January 2021
July 2020(Note 3)Difference

Twenty-eighth Twenty-ninth
fiscal period fiscal period
ended
ended
July 2020 January 2021

Difference

Operation days

182 days

184 days

2 days

182 days

184 days

2 daysOccupancy rate

100.0％

100.0％

0.0PT

100.0％

100.0％

0.0PT

1

1

0

23

23

0

775,581995,329

219,748

530,636

537,654

7,017

－

－

－

34,81920,085(14,733)

Total property operating revenue

775,581995,329

219,748565,456

557,739(7,716)

Property management fees

88,742

113,885

25,143

106,416

100,636(5,780)Property taxes (Note 1)

60,874

62,147

1,273

35,60435,63632

Utilities

－

－

－

5,380

5,104

(276)

Maintenance and repairs

－

－

－

1,308

－

(1,308)

1,305

1,693

387

1,098

1,110

12

101,038

126,385

25,34649,47745,380(4,096)

71

92

21

210

209

(1)

Total property operating expenses

252,031304,204

52,173

199,496

188,077(11,418)

Property operating income (2)523,549

691,124

167,574

365,959

369,662

3,702

NOI (3) ((1)+(2))

624,588817,509

192,921415,437

415,042

(394)

－

－

－

66,564

6,905(59,658)

624,588817,509

192,921348,872

408,136

59,264

Number of tenants
Rent revenues
Other operating revenues

Insurance premium
Depreciation and amortization (1)Other expenses (Note 2)

Capex (4)NCF (3)-(4)54

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021
(Unit: thousands of yen)

Property number

R-3

R-4

Property nameRoppongi First Plaza

Roppongi View Tower

PeriodTwenty-eighth Twenty-ninth
fiscal period fiscal period
ended
ended
July 2020 January 2021

Difference

Twenty-eighth Twenty-ninth
fiscal period fiscal period
ended
ended
July 2020 January 2021

Difference

Operation days

182 days

184 days

2 days

182 days

184 days

2 daysOccupancy rate

94.6％

96.6％

2.0PT

98.1％

93.1％

(5.0PT)

40

40

0

90

85

(5)

81,41687,5686,152

107,992

106,600(1,392)

－

450

450

－

661

661

Total property operating revenue

81,41688,018

6,602

107,992

107,261(731)

Property management fees

13,88013,293(587)

14,153

12,960(1,193)

Property taxes (Note 1)

8,159

8,376

217

12,387

12,729341

Utilities

1,231

1,181

(49)

1,087

1,005

(82)

Maintenance and repairs

12,316

3,108(9,208)

2,208

1,150

(1,058)

228

230

2

340

344

3

Depreciation and amortization (1)11,405

11,42419

17,31817,076(241)

Other expenses (Note 2)

3,830

3,818

(11)

588

588

(0)

Total property operating expenses

51,051

41,433(9,617)48,08645,856(2,230)Property operating income (2)30,364

46,584

16,22059,90561,405

1,499

NOI (3) ((1)+(2))

41,77058,00916,23977,22478,482

1,257

Capex (4)13,6891,819(11,869)

6,629

7,198

568

NCF (3)-(4)28,08056,18928,10970,59471,284689

Number of tenants
Rent revenues
Other operating revenues

Insurance premium

55

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021
(Unit: thousands of yen)

Property number

S-1

Property name

Laforet Harajuku (Land)

Portfolio total

PeriodTwenty-eighth Twenty-ninth
fiscal period fiscal period
ended
ended
July 2020 January 2021

Difference

Twenty-eighth Twenty-ninth
fiscal period fiscal period
ended
ended
July 2020
January 2021

Difference

Operation days

182 days

184 days

2 days

182 days

184 days

2 daysOccupancy rate

100.0％

100.0％

0.0PT

98.1％

98.8％

0.7PT

1

1

0

359

348

(11)

667,800

667,800－

9,389,038

9,614,085

225,047－－－

213,218

206,546(6,672)

667,800

667,800－

9,602,257

9,820,632

218,375－－－

1,122,870

1,172,247

49,37686,33990,4504,111

725,205

736,413

11,207

Utilities－－－

115,650

116,730

1,080

Maintenance and repairs

－

－

－

79,29865,319(13,978)

Insurance premium

－

－

－

17,313

17,877564

Depreciation and amortization (1)

－

－

－

1,041,061

1,056,619

15,558Other expenses (Note 2)

－

－

－

150,462

150,453(8)

Total property operating expenses

86,33990,4504,111

3,251,861

3,315,661

63,800Property operating income (2)581,461

577,350(4,111)6,350,396

6,504,970

154,574

NOI (3) ((1)+(2))

581,461

577,350(4,111)

7,391,457

7,561,590

170,132－－－

732,668

240,488(492,180)

581,461

577,350(4,111)

6,658,788

7,321,102

662,313

Number of tenants
Rent revenues
Other operating revenues
Total property operating revenue
Property management fees
Property taxes (Note 1)

Capex (4)NCF (3)-(4)56

Mori Hills REIT Investment Corporation (3234)
Financial Report for the Twenty-Ninth Fiscal Period Ended January 31, 2021

Disclaimer:This report is a translation of the Japanese language Financial Release (Kessan-Tanshin) dated March 17, 2021
of Mori Hills REIT Investment Corporation (the Company) prepared under the timely-disclosure requirementsof the Tokyo Stock Exchange.
This English language document was prepared solely for the convenience of and for reference by investors anddoes not necessarily correspond to the original Japanese documents nor is it intended to constitute a disclosure
document. The Japanese language Kessan-Tanshin for the aforementioned should always be referred to as theoriginal of this document.
English terms for Japanese legal, accounting, tax and business concepts used herein may not be precisely
identical to the concepts of the equivalent Japanese terms. With respect to any and all terms used herein,
including without limitation, financial statements, if there exists any discrepancies in the meaning orinterpretation thereof between the original Japanese documents and English statements contained herein, theoriginal Japanese documents will always govern the meaning and interpretation.
None of the Company, Mori Building Investment Management Co., Ltd. (MIM) or any of their respective
directors, officers, employees, partners, shareholders, agents or affiliates will be responsible or liable for thecompleteness, appropriateness or accuracy of any English translations. No person has been authorized to give
any information or make any representations other than as contained in this document in relation to the mattersset out in this document, and if given or made, such information or representation must not be relied upon as
having been authorized by the Company, MIM or any of their respective directors, officers, employees, partners,
shareholders, agents or affiliates.
The financial statements of the Company have been prepared in accordance with accounting principles
generally accepted in Japan (“Japanese GAAP”), including provisions set forth in the Act on Investment Trusts
and Investment Corporations and the Financial Instruments and Exchange Act of Japan as well as related
regulations, which are different in certain respects as to the application and disclosure requirements ofInternational Financial Reporting Standards. The accompanying financial statements are a translation of thefinancial statements of the Company, which were prepared in accordance with Japanese GAAP.
Certain provisions of this document contain forward-looking statements and information. We base thesestatements on our beliefs as well as our assumptions based solely on certain limited information currently
available to us. Because these statements reflect our current views concerning future events, these statements
involve known and unknown risks, uncertainties and assumptions.
These forward-looking statements are not a guarantee of future performance and involve risks anduncertainties, and there are certain important factors that could cause actual results to differ, possibly
materially, from expectations or estimates reflected in such forward-looking statements, including without
limitation: the general economy, market conditions, financial markets including the performance of the realestate market, interest rate fluctuations, competition with our properties, and the impact of changing
regulations or taxation.
The forward-looking statements contained in this document express information only as of the date of releaseand the Company does not undertake to update those forward-looking statements to reflect events orcircumstances occurring after the date of this release.
The version posted on the website is the latest version. Accordingly, the content may vary depending on thetiming of release.

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