Supplementary Materials
on Press Releases announced today

November 29, 2019

“Notice of Acquisition and Disposition of Assets and Lease Contract with New Tenants”“Notice Concerning Revision to Forecast of Management Performance for the Fiscal PeriodEnding May 31, 2020 and Forecast of Management Performance for the Fiscal PeriodEnding November 30, 2020”

Activia Properties Inc.
（Securities Code: 3279/API）Portfolio balance
improvement

Enhance capacity
for internal growth

Outline of asset replacement
Anticipated
Asset

Effect from asset replacement

Asset to bedisposed

TO-18 Ebisu Prime Square

TO-17 A-PLACE
Shinbashi Ekimae（51% co-ownership interest）

Replacement

１

DPU improvement

２-11% rent gap (Note 8)(Note 1)

(Appraisal NOI yield)¥30,700 million( 3.7% )(Note 2)

Appraisal value¥31,000 million

Expected NOI¥1,148 million(Note 1)(Note 3)(Note 1)(Note 4)

NOI yield after
depreciation (Note 5)

3.1%Improve NOI yield
after depreciation+¥157/unit(Note 7)

 Increase in DPU by +¥157/unit is estimated as
benefit from replacement for the period ending Nov.
2020 (the 18th Period) when Ebisu Prime Squarestarts to fully contribute+¥ 76/unit(Note 9)

 Office rent uptrend continues thanks to concentrationof tech companies in the area Recently some cases with contracted rent higher thanmarket rent have been seen

3
Anticipatedacquisition price

Return to greater
Shibuya area

Anticipateddisposition price¥21,000 million

Assumed book¥20,824 million
value(Note 6)
Appraisal value(Note 3)

¥20,200 million

Expected NOI(Note 4) ¥635 million
NOI yield after
depreciation

2.6%(Note 5)

Wipe out unrealized loss
on asset

Increased ratio ofgreater Shibuya area33.1%(Note 10)

 Ratio of properties in greater Shibuya area in Tokyo
Office Properties increased by approximately 14%
after acquisition of Ebisu Prime Square which will be
the flagship property in Ebisu area

Leverage Sponsor support

 Maximize benefit from transactions by acquisition ofEbisu Prime Square prior to disposition
Operation
period

2019
Nov.

Ebisu PrimeSquare

Contract

A-PLACE
Shinbashi EkimaeContract

Dec.

2020
Jan.

Feb.

Mar.

Acquisition
Disposition

Apr.

Management Performance Forecast
 DPU forecast for the 17th Period revised to be ¥9,880 (+1.9％ vs. 17th Period previous forecast)⇒ Owing to internal growth mainly in office, etc. and the transaction effect from the Replacement

 DPU forecast for the 18th Period to be ¥9,930 (+2.4％ vs.17th Period previous forecast)⇒ Owing to the effect from Replacement in addition to stable internal growth(¥)

Propel into early achievement ofstabilized DPU of ¥10,000

Transaction effect boosting DPU

10,00010,000

9,880

9,700

Internal
growth,etc.
+93

9,930

Transaction
effect+87

9,500『AP Shinbashi Ekimae』

09,000～2020.5(17th Period)
Previous forecast

Related toDisposition+101

Lost profit-481『Ebisu Prime Square』
New operation+466～ ～2020.5(17th Period)
Revised forecast
Interest rate
: 0.75%assumption

2020.11(18th Period)
New forecast

Interest rate
assumption : 0.80%

Replacement
effect+157

NOI after
depreciation, etc.

+245

Propertyrelated tax, etc.

-87

Budgeted maintenanceexpenses and other costs
ahead of original schedulein preparation for the 20th
Period where propertyrelated tax starts to beexpensed

～

Note
(Note 1) Based on our anticipated pro rata share of the co-ownership interest (51%)(Note 2) Calculated by dividing the net operating income (¥1,130 million) based on direct capitalization method stated in the appraisal report
as of October 1, 2019 by the acquisition price(Note 3) “Appraisal Value” is represented by appraisal value stated in each of the appraisal reports as of October 1, 2019 for Ebisu Prime
Square and as of May 31, 2019 for A-PLACE Shinbashi Ekimae(Note 4) “Expected NOI” for Ebisu Prime Square is the estimated annual net operating income based on the present assumption and “ExpectedNOI” for A-PLACE Shinbashi Ekimae is the amount equal to two times the actual net operating income of the period ended May 2019(the 15th Period)(Note 5) “NOI yield after depreciation” for Ebisu Prime Square is calculated by dividing the amount equivalent to two times the expected net
operating income for the period ending November 2021 (the 20th Period) where property-related tax starts to be expensed by theanticipated acquisition price of the property, and “NOI yield after depreciation” for A-PLACE Shinbashi Ekimae is calculated by dividing
the amount equivalent to two times the actual net operating income for the period ended May 2019 (the 15th Period) divided by theacquisition price (¥20,500 million) of the property(Note 6) Assumed value as of March 19, 2020
(Note 7) The estimated amount of increase in distributions per unit for the period ending November 2020 (the 18th Period) derived from
benefit from property replacement(Note 8) Simulated market-to-actual rent gap ratio of the office portion(Note 9) Estimated amount of increase in distributions per unit when the market-to-actual rent gap of office portion is fully bridged (not takeninto account the increase in costs such as management fee, etc.)(Note 10) Based on the aggregate acquisition price of Tokyo Office Properties (TO)Disclaimer
This document is provided solely for informational purposes and should not be construed as an offer, solicitation or recommendation to buy or sell any
specific product including investment units. Any decisions making on investment absolutely rest on your own judgment and on your own responsibility.
This document is not a disclosure document or statement of financial performance required by the Financial Instruments and Exchange Act, the Act
Concerning Investment Trusts and Investment Corporations of Japan, the rules governing companies listed on the Tokyo Stock Exchange or any otherapplicable rules.
This document includes charts and data described by TLC REIT Management Inc. (hereinafter the “Asset Manager”) and refers to data, index and otherinformation provided by third parties in addition to information about Activia Properties Inc. (hereinafter the “Investment Corporation”). Also analyses,
judgments and other points of view of the Asset Manager under the present situation are included.
The information contained in this document is not audited and there is no guarantee regarding the accuracy and certainty of the information. Analyses,
judgments and other non-factual views of the Asset Manager merely represent views of the Asset Manager as of the preparation date. Different views
may exist and the Asset Manager may change its views in the future.
The figures included in this document may be different from the corresponding figures in other disclosure materials due to differences in rounding.
Although theinformation contained in this document is the best available at the time of its publication, no assurances can be given regarding the accuracy, certainty,
validity or fairness of this information. The content of this document can be modified or withdrawn without prior notice.
The Investment Corporation and the Asset Manager do not guarantee the accuracy of the data, indexes and other information provided by third parties.
The Investment Corporation’s actual performance may be materially different from results anticipated by forward-looking statements contained in thisdocument.
Dates indicated in this document may not be business days.

Disclaimer for Dutch Investors
The units of the Investment Corporation are being marketed in the Netherlands under Section 1:13b of the Dutch Financial Supervision Act (Wet op het
financieeltoezicht, or the “Wft”). In accordance with this provision, the Asset Manager has notified the Dutch Authority for the Financial Markets of its intention tooffer these units in the Netherlands. The units of the Investment Corporation will not, directly or indirectly, be offered, sold, transferred or delivered in theNetherlands, except to or by individuals or entities that are qualified investors (gekwalificeerde beleggers) within the meaning of Article 1:1 of the Wft,and as a consequence neither the Asset Manager nor the Investment Corporation is subject to the license requirement pursuant to the Wft. The AssetManager is therefore solely subject to limited ongoing regulatory requirements as referred to in Article 42 of the European Alternative Investment FundManagers Directive (European Directive 2011/61/EU) (the “AIFMD”).
Please visit the Investment Corporation’s home page (https://www.activia-reit.co.jp/en/) to access information provided under Article 23 of the AIFMD.