Additional Documentation for“Notice Concerning Revision to Expected Operating
Condition and Distribution Forecast for the Fiscal PeriodEnding July 2024 (42nd Fiscal Period) and the Fiscal PeriodEnding January 2025 (43rd Fiscal Period)”

Announced on July 12, 2024

TSE:8957

https://www.tokyu-reit.co.jp/eng/Table of Contents
Executive Summary (Updated: July 12, 2024)

2

Trend and Guidance for Distribution per Unit (Updated: July 12, 2024)

3

Financial Results Forecast (FP ending Jul. 2024 (FP 42) and FP ending Jan. 2025 (FP 43)) (Updated : July 12, 2024)

4(Reference) Overview of Property Acquisition and Disposition announced today

5(Reference) Property Replacement Results in the last three fiscal periods (FP ended Jul. 2023 (FP 40) to FP ending Jul. 2024 (FP 42))6



List of Abbreviations of Properties
Abbreviation

Name of Property

QFRONTQFRONT

Tokyo Nissan Taito Building

Taito

Akihabara Sanwa Toyo Building

Akihabara

Tokyu Toranomon Building

Tokyu Toranomon

Tokyu Bancho Building

BanchoAoyama Oval Building

OVAL

ISM Tsunashima

Tsunashima

Futako Tamagawa Rise

Futako Tamagawa

REVE Nakameguro (land with leasehold interest)

Nakameguro

Main Notes / Terms Used in the MaterialTokyo Nissan Taito Building

30% of quasi-co-ownership interest was disposed on July 31, 2023,
30% of quasi-co-ownership interest on January 31, 2024,
and 40% of quasi-co-ownership interest on February 29, 2024.

Capital Re-investment Model

A business model in which Tokyu and other sponsor companies re-invest funds collected fromsales of properties to TOKYU REIT into real estate development along Tokyu line areas andother businesses, thereby revitalizing economic activities in investment target areas of TOKYUREIT as well as maintaining and enhancing the value of investment targeted areas and portfolio
properties.

Prepared on July 11, 2024

1

Executive Summary (Updated : July 12, 2024)
Period Ended Jan. 2024 (FP 41) Actual

External GrowthGain on sale ofreal estate, etc.

Property Disposition
Taito (30%)

Property Disposition
Taito (40%) / Nakameguro
Property Acquisition
Tsunashima / Bancho (Additional Acquisition)

1,295 million yen

Internal Growth

NOI
Operating income
Finance (Note 1)
Net income[per unit]
Reversal of reserve for
reduction entry[per unit]
Provision of reserve for reduction
entry of replaced property[per unit]
Reversal of reserve for reduction
entry of replaced property[per unit]
Distribution per unit

Prepared on July 11, 2024

Period Ending Jul. 2024 (FP 42) Forecast(+12 million yen)

1,803 million yen(+507 million yen)

Period Ending Jan. 2025 (FP 43) Forecast
New property sales and purchases were not incorporated
upon the preparation of financial results forecast－(-1,803 million yen)

Period-end occupancy rate: 100.0% (+1.5pts)

Period-end occupancy rate: 99.3% (-0.7pts)

Period-end occupancy rate: 97.7% (-1.6pts)

Main factors of increase/decrease from the previous fiscal period

Main factors of increase/decrease from the previous fiscal period

Main factors of increase/decrease from the previous fiscal period[Existing properties]
・ Move-ins and move-outs of tenants (Tokyu Toranomon) (Note 2):+79 million yen
・ Move-ins and move-outs of tenants(excluding Tokyu Toranomon) (Note 2): +60 million yen[Existing properties]
・ Increase in repair and maintenance costs at QFRONT:-201 million yen[Existing properties]
・ Decrease in repair and maintenance costs at QFRONT:+204 million yen

・ Increase in taxes and public dues: -100 million yen

・ Decrease in rental revenues at OVAL: -67 million yen[Disposed properties]・ (Current period/previous period) Taito NOI (Note 3):-36 million yen

・ Increase in miscellaneous income at Akihabara(restoration costs): +232 million yen[Disposed properties]

・ Decrease in miscellaneous income at Akihabara(restoration costs): -232 million yen[Disposed properties]・ (Current period/previous period) Taito NOI: -83 million yen

5,372 million yen(+146 million yen)

4,843 million yen(+160 million yen)・ (Previous period) Taito NOI: -9 million yen

・ (Current period) Nakameguro NOI: -1 million yen

・ (Previous period) Nakameguro NOI: -18 million yen[Acquired properties]・ (Current period) Bancho (Additional Acquisition) NOI:
-8 million yen
・ (Current period) Tsunashima NOI: +2 million yen[Acquired properties]
・ (Previous period) Bancho (Additional Acquisition) NOI:
+295 million yen
・ (Previous period) Tsunashima NOI: +16 million yen

5,209 million yen(-163 million yen)

5,166 million yen(+323 million yen)

5,354 million yen(+145 million yen)

3,463 million yen(-1,703 million yen)Interest expenses: +3 million yen

Interest expenses: +1 million yen

Interest expenses: +53 million yen(Average interest rate: 0.77% (-))

(Average interest rate: 0.78% (+0.01pts))(Average interest rate: 0.82% (+0.04pts))

4,410 million yen(+150 million yen)

4,730 million yen(+319 million yen)

2,976 million yen(-1,753 million yen)

4,511 yen(+153 yen)

4,838 yen(+327 yen)

3,044 yen(-1,793 yen)

259 million yen(+259 million yen)

265 yen(+265 yen)ーー

804 million yen(+151 million yen)

1,081 million yen(+276 million yen)－(-1,081 million yen)

823 yen(+155 yen)

1,106 yen(+283 yen)－(-1,106 yen)

60 million yen(+1 million yen)

66 million yen(+5 million yen)

87 million yen(+21 million yen)

61 yen(+1 yen)

67 yen(+5 yen)89 yen(+22 yen)

3,750 yen(ー)

3,800 yen(+50 yen)

3,400 yen(-400 yen)

* Figures in parentheses are comparison with previous fiscal period.
(Note 1) Borrowings and investment corporation bonds.
(Note 2) Rental revenues due to move-ins and move-outs of tenants (including common area charges).
(Note 3) Excluding the impact of rental revenues due to move-ins and move-outs of tenants and upward rent revisions.

2Trend and Guidance for Distribution per Unit (Updated : July 12, 2024)
Distribution per unit

Gain on sale, etc. per unit
Period of extension work of
Tokyu Toranomon Building
Reversal of reserve for reduction
Reversal of reserve for reduction(Period of revenue decrease)entry per unit
entry of replaced property per unit
Advanced property acquisitions inDistribution per unit (excluding gain on sale, etc.
the property replacement scheme
per unit (Note), reversal of reserve for reduction
entry per unit and reversal of reserve for reduction(yen) entry of replaced property per unit)
3,950 4,005

,000

,500

,000

3,099
2,739

323

2,923

3,298
315

40

3,551
326

3,760
365

3,400 yen

1,526

1,636

2,776

3,200 yen

3,750

3,750

3,800

644

501

738

2,883

2,983

3,225

3,395

3,400
265

61

1,687 59

,000

2,739

4,040

3,621

,500

,500

Increase of ¥50
from previous
forecast(Note)

Distribution
floor

89

67

3,400 yen

3,621
2,424

,000

3,047
2,369

3,188

2,353

2,993

3,044

Increaseof ¥161
fromprevious
forecast

5000End of Jul. End of Jan. End of Jul. End of Jan. End of Jul. End of Jan. End of Jul. End of Jan. End of Jul. End of Jan. End of Jul. End of Jan. End of Jul. End of Jan.
2018

2019

2019

2020

2020

2021

2021

2022

2022

2023

2023

2024

(FP 30)(FP 31)(FP 32)(FP 33)(FP 34)(FP 35)(FP 36)(FP 37)(FP 38)(FP 39)(FP 40)(FP 41)(FP 42)(FP 43)

Reversed due to thedepreciation for thebuilding of Futako
Tamagawa and Bancho

Forecast

Forecast

End of Jan.
2025
(FP 43)
Forecast(Reference) Change in/Forecast of Balance of Reserve for Reduction Entry Per Unit andBalance of Reserve for Reduction Entry of Replaced Property Per Unit

Reserve for
reduction entry
per unit
Reserve for
reduction entryof replaced
property per
unit

Reversed due tothe depreciation
for the building of
Futako Tamagawa

2024

2025

(Unit: yen)

End of Jul.
2019
(FP 32)End of Jan.
2020
(FP 33)End of Jul.
2020
(FP 34)End of Jan.
2021
(FP 35)End of Jul.
2021
(FP 36)End of Jan.
2022
(FP 37)

End of Jul.
2022
(FP 38)End of Jan.
2023
(FP 39)End of Jul.
2023
(FP 40)End of Jan.
2024
(FP 41)

End of Jul.
2024
(FP 42)
Forecast

Provision

－

364

393

416

－

－

433

－

－

－

－

－

Reversal

－

－

－

－

－

－

－

－

－

－

－

265

Balance

368

733

1,126

1,542

1,542

1,542

1,976

1,976

1,976

1,976

1,976

1,710

3,283

－

3,003

667

823

1,106

－

－

－

－

59

61

67

89

3,283

3,283

6,286

6,894

7,655

8,694

8,604

Provision

Prepared on July 11, 2024

Reversal
Balance

－

－

－

－

－

(Note) Gain on sale of real estate, etc. per unit - Provision of reserve for reduction entry per unit - Provision of reserve for reduction entry of replaced property per unit.

3

Financial Results Forecast(FP ending Jul. 2024 (FP 42) and FP ending Jan. 2025 (FP 43) )（Updated : July 12, 2024）

 Forecast of Income Statement (P/L) and Distribution per Unit
FP endedJan. 2024
Actual(FP 41)

Item(Unit: million yen)

FP ending Jul. 2024 Forecast (FP 42)①
As ofJul. 12, 2024②
As ofMar. 15, 2024

FP ending Jan. 2025 Forecast (FP 43)
Change(PoP)①-②
Change①
As ofJul. 12, 2024

(Change fromprevious forecast)②
As ofMar. 15, 2024

Change(PoP)①-②
Change(Change fromprevious forecast)

（A）

8,962

9,696

9,632

63

733

7,945

7,593

352

-1,750

（B）

7,667
7,213
454
1,295
4,119

7,892
7,168
723
1,803
4,529

7,903
7,141
761
1,729
4,504

-10

225

7,945
7,376
569
－
4,482

7,593
7,048
545
－
4,327

352

53

3,247
2,295
5,372

3,640
2,683
5,209

3,622
2,666
5,236

3,645
2,591
5,354

3,525
2,530
5,063

950
2
872
717
4,843
2

951
5
889
720
5,166
0

950
5
882
720
5,128
0

1,049
5
837
688
3,463
0

990
5
801
656
3,266
0

Ordinary income

434
369
36
4,411

435
370
36
4,731

434
368
36
4,694

446
380
37
2,819

Net income

4,410

4,730

Operating revenues
Revenues from real estate lease business
Rental revenues
Other rental revenues
Gain on sale of real estate, etc.
Operating expenses（C）

Expenses from real estate lease business
Expenses（D）

NOI（B）-（D）

Depreciation
Loss from the retirement of fixed assets
Other operating expenses
Investment management fee
Operating income（A）-（C）

Non-operating revenues
Non-operating expenses
Interest expenses
Interest of investment corporation bonds

Information
per unit

Others

27

-44

-37

269

73

507

24

409

17

392

16

388

-27

-163

0

1

－

2

7

17

0

3

38

323

－

-1

1

1

1

1

－

-0

37

320

486
423
37
2,977

4,693

37

319

2,976

328

207

23

-154

－

-1,803

155

-46

119

5

60

-92

291

145

59

98

－

－

35

-52

31

-31

197

-1,703

－

0

39

50

43

52

－

0

157

-1,753

2,818

157-1,753

Net income per unit (EPS)

（¥）

4,511

4,838

4,800

37

327

3,044

2,883

161

-1,793

Amount of reversal of reserve for reduction entry
per unit

（¥）

－

－

－

－

－

265

450

-185

265

Amount of provision of reserve for reduction entry of
replaced property per unit

（¥）

823

1,106

1,114

-8

283

－

－

－

-1,106

Amount of reversal of reserve for reduction entry of
replaced property per unit

（¥）

63
3,750

5
50

65
3,400

22

50

89
3,400

23

（¥）

67
3,800

3

Distribution per unit（DPU）

61
3,750

－

-400

Occupancy rate

（％）

99.3
4.31

-0.7pts-0.06pts

97.0
4.13

-1.6pts-0.04pts

97.7
4.12

0.7pts

（％）

99.3
4.27

－

NOI yield

100.0
4.33

-0.01pts-0.15pts(Note)(Note) Based on the average balance of assets during the period (acquisition price).
Prepared on July 11, 2024

4

(Reference) Overview of Property Acquisition and Disposition
announced today Additional acquisition of Tokyu Bancho Building as a replacement for Tokyo Nissan Taito Building Implementation of property transactions with the sponsor based on the Capital Re-investment Model
Acquisition: Tokyu Bancho Building (Additional Acquisition) (Office)Property Characteristics

•

A large office building with high visibility
and office specifications located in the
Ichigaya and Yotsuya area.

•

Approximately a three-minute walk from
Ichigaya Station on the JR and Subway
Lines.

Area Characteristics



Acquisition dateJul. 19, 2024

High occupancy area with excellent accessto central business districts and relatively
stable rent levels in the five central wardsof Tokyo.

SellerTOKYU CORPORATION(Ref.) Office Vacancy Ratio•
Overview of property

Acquisition priceAppraisal value on acquisition

14,700 million yen(Note 1)

14,700 million yen

Use
NOI(NOI yield) (Note 2)
NOI after depreciation(NOI yield after depreciation) (Note 2)
Occupancy rate (Note 3)

Office, Retail, etc.
487 million yen per annum(3.3%)
369 million yen per annum(2.5%)
100.0%

Completion date

Sep. 2011

Location

Chiyoda-ku, Tokyo

Characteristics of the AcquisitionHigh occupancy in areas where
Asset to Be Acquired is located

5.0%
4.0%
3.0%

Overview of property
Disposition dateJul. 19, 2024

Purchaser

TOKYU CORPORATION

Disposition priceDifference between
the disposition priceand the book value

1,240 million yen

NOI(NOI yield) (Note 2)
Occupancy rate (Note 3)

39 million yen perannum (3.2%)
100.0%

Location

Meguro-ku, Tokyo

77 million yen(Note 4)

2.0%
1.0%
0.0%

5 Wards

Kanda, Iidabashi(Source) CBRE K.K.

•

Acquisition as a replacement for Tokyo Nissan Taito Building disposed over three fiscal periods
from FP ended July 2023.

•

The first sponsor collaboration project following the announcement of the Medium-Term Management Plan
by TOKYU CORPORATION in March 2024.

•

Full acquisition of trust beneficiary interest: (Before the Acquisition) 52.6% quasi co-ownership interest(After the Acquisition) 100.0% quasi co-ownership interest

Prepared on July 11, 2024

Disposition: REVE Nakameguro(Land with leasehold interest)(Note 1) As of May 1, 2024.
(Note 2) For the acquired property, estimated figures
exclusive of special items from income andexpenditure of the acquisition fiscal year; and forthe disposed property, the actual results fromFebruary 2023 to January 2024. Yields are
based on acquisition/disposition price.
(Note 3) As of end of May 2024.
(Note 4) Difference between the disposition price andestimated book value as of the disposition dateis indicated.

5

(Reference) Property Replacement Results in the last threefiscal periods (FP ended Jul. 2023 (FP 40) to FP ending Jul. 2024 (FP 42))Portfolio quality is improved by increasing asset size, NOI and NOI after depreciation and improving NOI yield after
depreciation because of property replacements
Realize returns to unitholders by realizing unrealized gains and increasing distribution
Acquisition
Tokyu Bancho Building(Additional Acquisition)(Office)Acquisition
Jul. 19, 2024
date
Location
Chiyoda-ku, Tokyo

Disposition
ISM Tsunashima(Residence)

Tokyo Nissan Taito Building(Office)Acquisition
dateJul. 5, 2024

Location

Yokohama-shi,
Kanagawa

LocationJul. 31, 2023 (30%)
Jan. 31, 2024 (30%)
Feb. 29, 2024 (40%)
Taito-ku, Tokyo

NOI after
depreciation(yield)Name of property

Disposition
priceJul. 19, 2024
Meguro-ku, Tokyo

NOI after
depreciation(yield)Gain onsale of realestate, etc.

Of which,provision ofreserve for
reduction entry

Name of property

ISM Tsunashima

1,000

38
(3.8%)

30(3.0%)

Tokyo Nissan Taito
Building

7,950

279
(3.5%)

175(2.2%)

4,307

2,546
(Note)

FP 42

Tokyu Bancho Building(Additional Acquisition)

14,700487(3.3%)

369(2.5%)REVE Nakameguro(Land withleasehold interest)

1,240

39
(3.2%)

39(3.2%)

73

-

Total

2 properties

15,700525(3.4%)

399(2.5%)

2 properties

9,190

319
(3.5%)

215(2.3%)

4,380

2,546

FP 40
to

NOI
(yield)Disposition
date
Location

Acquisition
price(Unit: million yen)

NOI
(yield)Disposition
date

REVE Nakameguro(Land with leasehold interest)* Estimated figures exclusive of special items from the income and expenditure of the acquisition fiscal year are indicated for the acquired properties. Actual results for the two fiscal periods
before the disposition are indicated for the disposed properties. Yield is based on acquisition/disposition price.
Prepared on July 11, 2024 (Note) Provision of reserve for reduction entry of replaced property

6

Disclaimer
This document is solely intended to provide information and is not intended to solicit securities or special product transactions.
Information provided in this material is not requested in the Financial Instruments and Exchange Act, Acts on Investment Trusts and Investment
Corporations and Government Orders pertaining to them, Cabinet Office Orders, regulations as well as listing regulation of Tokyo Stock Exchange andRegulation of Investment Trusts Association, etc. and are not disclosure documents or management reports based on them.
In addition to information on TOKYU REIT, Inc. (“TOKYU REIT”), this document includes charts and data prepared by Tokyu Real Estate Investment
Management Inc. (“Tokyu REIM”) based on data/index and other information released by third parties. Also, analyses, judgments and other views of
Tokyu REIM on such information at the moment are included in this document. TOKYU REIT and Tokyu REIM assume no responsibility for theaccuracy of data, indexes and other information released by third parties.
The information contained in this document is not audited and there is no assurance regarding the accuracy and certainty of the information.
Analyses, judgments and other non-factual views of Tokyu REIM merely represent views of Tokyu REIM as of the preparation date. Different views
may exist and Tokyu REIM may change its views in the future.
This document contains forward-looking statements, such as current plans, strategies and future performance. These forward-looking statements are
based on judgments obtained from currently available information. Please be advised that, for a variety of reasons, actual results may differ materiallyfrom those discussed in the forward-looking statements. Events that might affect actual results include, but are not limited to, fluctuations of the realestate market in Japan, general conditions of the Japanese economy, competitive pressures and relevant regulations.
Numbers for the same item may be different from other disclosure materials due to difference in rounding.
Dates indicated in this document may differ from business days for the convenience of preparing charts.
Although much attention has been paid to the inclusion of all relevant information in this document, there may be errors and omissions. Therefore,
they are subject to correction or amendment without prior notice.
Information without any special description is that as of July 12, 2024.
This document is a translation of the original document in Japanese and is prepared solely for the convenience of non-Japanese speakers. There is no
assurance as to the accuracy of the English translation. The original Japanese document shall prevail in the event of any discrepancies between thetranslation and the Japanese original.

Prepared on July 11, 20247