November 13, 2023

Q&A from IR Presentation (IR Meeting for FY2023-2Q)< Long-Term Management Plan >Q.

How is the progress towards achieving ROE and ROA targets? What are the strategies forachieving these targets in the future?

A.

The progress is in line with expectations. We are aiming to achieve KPI targets not only throughprofit growth in highly efficient businesses, such as capital recycling business and non-asset
business, but also by controlling balance sheet.

Q.

Is there a possibility of revising the property sale strategy to improve ROE and ROA?

A.

Regarding assets in Marunouchi area, in some cases, assets with high book value and low
efficiency are sold in the long-term business plan, as we had sold part of ownership in theOtemachi Park Building in the past. In addition, as for properties held outside Marunouchi areain the medium term, such as Central St. Giles in London, we sold it in the last fiscal year after
holding it for more than 10 years. We would like to consider selling those properties while
monitoring market trends.

Q.

Theoretically speaking, higher returns may be expected as interest rates rise. Is there apossibility of revising ROE target?

A.

We realize that the rise in interest rates has both positive and negative aspects. We would like tohandle the situation by engaging in risk hedging through long-term and fixed-rate borrowings
and pursuing profit growth by incorporating inflation. We currently focus on achieving KPItargets, not in consideration of revising those at this point.

Q.

How do you see the short-term profit growth projection will go for the next few years?

A.

As a prospect, we would say that overseas capital gain can grow depending on the recovery ofthe market. In addition, in the domestic office market, as attendance rate rises, demand for
office buildings with excellent location and specifications is increasing so that each company
can recruit talented employees. Leveraging the strength of Marunouchi area with overwhelming
transportation convenience, we would like to take initiatives to improve rent in the area.

Q.

How do you plan to improve NAV discount?

A.

We take the current situation of NAV discount seriously, and we would like to work towards
improvement by making progress of KPIs.

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< Shareholders Return >Q.

How do you evaluate share buybacks executions thus far? Are you considering increasing thepayout ratio?

A.

We recognize that the previous share buybacks have achieved certain results, such as significant
contribution to KPI growth. We are also aware of the requests for stable shareholders return.
Therefore, we are currently discussing our future direction while reflecting on the past capital
policy and shareholders return.

< Office Building Business >Q.

Do you have any specific strategies for increasing rents in Marunouchi area?

A.

We introduced flexible offices with high quality services to increase rent in Marunouchi, inaddition to rent negotiations with existing tenants. We are aiming to achieve rental growth byenhancing the attractiveness of the city and appealing various additional values.

< Retail Properties and Hotels >Q.

What is the status for current recovery of retail properties and hotels? What is the future
investment strategy for hotels?

A.

Retail properties have almost recovered to pre-COVID levels. For hotels, although the impactof labor shortages may cause slightly difficult situations to increase occupancy rates, we believe
ADR can continue to grow in light of the current weakness of the yen. We plan to takeadvantage of inbound recovery in the operational business. Whereas in the development
business, we will make appropriate investment decisions based on the progress of ongoingprojects and other factors.

< International Business >Q.

What is the background behind announcing the intention to achieve targets in the Long-Term
Management Plan ahead of schedule at this timing?

A.

As a mid-to-long term intention in the International Business, we announced the early
achievement of the target since investments have been progressing beyond our initialexpectations particularly in Europe and the United States and have generated returns more than
we anticipated.

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Q.

What are the strengths and future business strategies in each area?

A.

United States: Leveraging know-how of our local subsidiaries, we continue to invest in assets
with strong demand, mainly on logistics facilities and rental apartments, even under a soft
market.
Europe: We have accumulated track records of development and organized a system for easy
onsite information gathering. We are currently progressing with investments in rental
apartments and other assets.
Australia: Through collaborations with local top developers, investments are in progress inprime areas particularly centered around Sydney, and we plan to continue promoting
investments.
Asia: While condominiums in Thailand are well-performing, there are cases taking a long timefor development permits and approvals. We promote investments in carefully selected areas andassets.

< Non-asset Business >Q.

Are there any possibilities for new M&A in Investment Management Business?

A.

We already have the global platform of investment management companies, so we are notassuming business expansion through M&A at this point.

Q.

Considering the possibility of weakened demand for real estate investment due to rising interest
rates, how do you plan to expand AuM in the future?

A.

The main growth driver is in the United States at the moment. We got inquiries from companies
that have not made many investments in the U.S. yet, and we are currently considering
launching new funds. As for AuM in Europe and Asia, we are expecting these to expand
gradually in the future.

Q.

Aiming for achieving targets in the Long-Term Management Plan, what is the outlook for growthof other businesses in the Non-asset Business?

A.

We aim to achieve targets by accumulating revenues from various businesses, including fee
income in joint business and real estate services such as brokerage as well as the flexible officebusiness of Regus Japan Holdings Co., Ltd., a recently acquired subsidiary.

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November 13, 2023

< Construction Costs >Q.

What is the impact caused by increasing construction costs, and what is the prospect for thefuture?

A.

At this time, signs of construction costs settling down have not yet been seen. We plan to achieve
profit growth, including that of existing tenants in Marunouchi area by appealing the premium
qualities of location and specifications, so we can enhance profitability.
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