February 19, 2021
For Translation Purposes Only
Real Estate Investment Fund Issuer:
Mori Hills REIT Investment Corporation(Securities Code: 3234)
1-12-32 Akasaka, Minato-ku, Tokyo
Hideyuki Isobe, Executive Director
Asset Manager:
Mori Building Investment Management Co., Ltd.
Hideyuki Isobe, President & CEO
Inquiries: Akira Nemoto
General Manager of Financial Department
TEL: +81-3-6234-3234
MHR Announces Forecast for the Fiscal Period Ending January 2022
Mori Hills REIT Investment Corporation (hereinafter “MHR”) announced the forecast of financial
results for the thirty-first fiscal period ending January 2022 (August 1, 2021 to January 31, 2022)
as follows.
1. Forecast of Financial Results for the Thirty-First Fiscal Period Ending January 2022

Thirty-first fiscal
period ending
January 2022

Dividend
per Unit

Operating
Revenue

Operating
IncomeOrdinary
IncomeNet Income

9,899
million yen

6,163
million yen

5,579
million yen

5,577
million yen(excluding
dividend inexcess ofearnings)

2,910 yen

Dividend in
Excess ofEarnings
per Unit- yen<Reference>
Thirty-First Fiscal Period Ending January 2022
Forecast number of investment units issued and outstanding at end of period: 1,916,330 units
Forecast net income per unit: 2,910 yen1

2. Reason for the Announcement of Forecast of Financial Results
MHR resolved at its board of directors’ meeting held today to acquire the specified assets (assets
described in Article 2, Paragraph 1 of the Act on Investment Trusts and Investment Corporations)and renew the fixed master lease for part of floors at Roppongi Hills Mori Tower. As a result, MHR
newly announces the forecast of financial results for the fiscal period ending January 2022.
(Notes)1. The above forecast has been calculated as of today based on the assumptions stated in the attachment,“Assumptions for Forecast of Results for the Thirty-First Fiscal Period Ending January 2022.” Therefore,
actual operating revenue, operating income, ordinary income, net income, dividend per unit (excludingdividend in excess of earnings) and dividend in excess of earnings per unit may change due to factors
such as change in the future acquisition or transfer of real estate, changes in the real estate market andother changes in circumstances, etc. regarding MHR. Therefore, the above forecasts do not guarantee
actual performance or dividend amount.
2. MHR may revise the forecasts if it expects substantial discrepancies from the above forecasts.
3. Figures of less than one unit are rounded off and the percentage is rounded to the first decimal place.
The same shall apply hereinafter.

<Reference>
Forecasts of Financial Results for the Twenty-Ninth Fiscal Period Ending January 2021 andThirtieth Fiscal Period Ending July 2021

Twenty-ninth
fiscal period
ending January
2021
Thirtieth fiscal
period ending
July 2021

Dividendper Unit

Dividend in
Excess ofEarnings
per Unit

Operating
Revenue

Operating
IncomeOrdinary
IncomeNet Income

9,826
million yen

6,160
million yen

5,558
million yen

5,557
million yen

2,900 yen

- yen

9,874
million yen

6,170
million yen

5,577
million yen

5,576
million yen

2,910 yen

- yen(excluding
dividend inexcess ofearnings)(Note) The above forecasts have been calculated based on the assumptions stated in “Financial Report for theTwenty-eighth Fiscal Period ended July 31, 2020” under “Assumptions of Forecasts of Results for the TwentyNinth Fiscal Period Ending January 31, 2021 (August 1, 2020 - January 31, 2021) and the Thirtieth Fiscal
Period Ending July 31, 2021 (February 1, 2021 - July 31, 2021)” dated September 14, 2020. Therefore, actual
operating revenue, operating income, ordinary income, net income, dividend per unit (excluding dividend inexcess of earnings) and dividend in excess of earnings per unit may change. Furthermore, the above forecast
does not guarantee actual performance or dividend amount. MHR may revise the forecast if it expects
substantial discrepancies from the above forecast.

MHR’s website address is https://www.mori-hills-reit.co.jp/en/2

(Attachment)
Assumptions for Forecast of Results for the Thirty-First Fiscal Period Ending January 2022
Item
Accounting
PeriodInvestment
Portfolio

Assumptions
Thirty-First Fiscal Period: August 1, 2021 - January 31, 2022 (184 days)
In addition to the currently owned 11 properties, MHR is planning theadditional acquisition of a portion of Toranomon Hills Mori Tower(hereinafter, the “Asset to Be Acquired”) on August 2, 2021. For details ofthe acquisition of the Asset to Be Acquired, please refer to the press release“MHR Announces Acquisition of Trust Beneficiary Interest in Domestic
Real Estate (Toranomon Hills Mori Tower: Additional Acquisition)”separately announced today.
MHR assumes that it will acquire the Asset to Be Acquired on theanticipated acquisition date above, and that there will be no change in theinvestment portfolio (such as acquisitions of new properties or transfers ofexisting properties) until the end of the thirtieth fiscal period ending
January 2022.
In actual practice, however, the forecasts are subject to change in theinvestment portfolio and other factors.

OperatingRevenue

Rent revenue of real estate is estimated based on lease agreements, etc.
effective as of today, taking into account the market environment, trends
among individual tenants and other factors.
For the properties owned, MHR is planning the renewal of the fixed master
lease for part of floors at Roppongi Hills Mori Tower on August 1, 2021. For
details, please refer to the press release “MHR Announces Transaction witha Related Party (Mori Building Co., Ltd.) (Roppongi Hills Mori Tower)”
separately announced today.
MHR assumes that there will be no delinquencies or unpaid rent bytenants.

3

OperatingExpenses

For expenses related to the real estate leasing business, which are majoroperating expenses, is expected 3,420 million yen. Expenses other thanthose below are calculated by referring to historical figures and adjusted toreflect variable factors.
A）For property taxes, city planning taxes, etc., 755 million yen (for sixmonths) is expected for the fiscal periods ending January 2022.
Therefore, the property taxes, city planning taxes, etc. associated with
Asset to Be Acquired will be calculated at the time of acquisition withthe seller using a prorated adjusted amount; however, MHR shallcapitalize these amounts as part of the cost of the acquisition and, thus,
shall not recognize them as operating expenses for the fiscal period
ending January 2022.
B） For building maintenance and repairs, MHR recorded the estimatedrequired amount for the respective fiscal periods as 83 million yen.
However, please note that the actual expenses for maintenance andrepairs in the respective fiscal periods may differ materially from theestimated amounts due to various reasons. For example, anunforeseeable event may cause serious damage to a building andemergency repairs may be required as a consequence. Also,maintenance and repairs are expenses that are not accrued on aregular basis and the amount of variation may vary significantly fromone period to the next.
C） Depreciation and amortization, which are calculated using thestraight-line method with future additional capital expenditures taken
into account, are expected to be 1,085 million yen.
D） For property management fees, is expected to be 1,176 million yen.
For operating expenses other than expenses related to the real estateleasing business (asset management fee, asset custody fee, administrativeservice fees, etc.), is expected to be 315 million yen.

Non-OperatingExpenses

MHR expects to incur 384 million yen in interest expenses, 46 million yen
in interest expenses on investment corporation bonds, and 139 million yen
in borrowing expenses.
MHR expects to incur 5 million yen in amortization of investment unit
issuance expenses.

InterestBearing Debt

MHR’s balance of interest-bearing debt as of today is 184,422 million yen.
MHR assumes that it will newly borrow 7,870 million yen in August 2021
as part of the funds for the acquisition of the Asset to Be Acquired in theinvestment portfolio as described above.
The balance of loans payable outstanding as of today is 167,422 million yen.
Of the balance, MHR assumes that 19,000 million yen of loans payable due
for repayment by the end of the fiscal period ending January 2022 will be
refinanced in the entire amount.
The balance of investment corporation bonds as of today is 17,000 millionyen. Of the balance, MHR assumes that 2,000 million yen due forredemption by the end of the fiscal period ending January 2022 will beredeemed with issuance of the same amount of investment corporation
bonds.
4Issuance ofInvestment
Units

The number of investment units issued and outstanding as of today is
1,916,330 units. MHR assumes that there will be no additional issuance ofinvestment units until the end of the fiscal period ending January 2022.

Dividend perUnit(excluding
dividend inexcess ofearnings)

Dividend per unit is calculated based on the assumption that MHR will
make distributions in accordance with the distribution policy set forth in its
Articles of Incorporation.
Dividend per unit may vary due to various factors, including changes in theinvestment portfolio, changes in rent income due to tenant replacement,
unexpected repairs, changes in interest rates, or additional issuance of new
investment units.
Dividends per unit are calculated based on the assumption that changes
will not arise in deferred losses on hedges, which is an item of deduction
from net assets (as defined in Article 2, Paragraph 2, Item 30 (b) of theOrdinance on Accountings of Investment Corporations) arising frominterest rate swap transactions.

Dividend in
Excess ofEarnings perUnit

As dividends in excess of earnings per unit are calculated based on theassumption that changes will not arise in fair value from interest rate swap
transactions, MHR does not plan to make distributions in excess of earnings(allowance for temporary difference adjustments).
Of dividends in excess of earnings, none falling under the category ofdistributions accompanying decrease in capital, etc. under tax law isplanned at this point in time.

OtherMHR assumes that there will be no amendments to laws and regulations,taxation systems, accounting standards, listing regulations, rules of theInvestment Trusts Association, Japan, etc. that would affect the above
forecasts.
MHR assumes that there will be no unforeseeable material changes ingeneral economic conditions, the real estate market, etc.

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