#1EON AEON REIT Investment Corporation イオンリート 21st FP (Jul. 2023) Financial Results Presentation Material (the Asset Manager) AEON Reit Management Co., Ltd. Stock code: 3292 https://www.aeon-jreit.co.jp/en/index.html AEON 100円 AEON Chigasaki-Chuo Shopping Center#2Table of contents (1/2) 1.21st FP Financial Result / Forecast for 22nd FP and 23rd FP 1. Executive Summary 2. 21st FP (Jul. 2023) financial summary II. AEON REIT's Strengths P.5 1. AEON REIT's Strengths P.25 P.6 2. "Community Infrastructure Asset" localized successfully. P.26 2 3. 21st FP (Jul. 2023) FP Actual vs Forecast analysis P.7 3. Points of the "Community Infrastructure Asset" P.27 4. 22nd FP (Jan. 2024), 23rd FP (Jul. 2024) forecast P.8 4. Stability of "Community Infrastructure Asset" and its rent ... P.28 5. Progress towards Mid-term target P.9 6. External growth 7. Utilization of abundant cash-on-hand 8. Internal growth P.10-12 ~ 5. External growth Selective investments backed by Pipeline Support ~ .. 6. External growth P.29 Further growth backed by Pipeline Support - P.30 P.13 7. Internal growth Enhancing values of properties P.31 P.14-16 8. Financial policy Stable funding ~ P.32 2 9. Finance Upgrade of external credit rating P.17 9. Financial strategy Financial management P.33 10. Sustainability ~ Main topics of the 21st FP ~ P.18 10. Financial strategy LTV & Cost trends P.34 11. Summary as of 21st FP (Jul. 2023) P.19 11. Risk management ~ Resilient to natural disasters ~ P.35 12. Stable growth during the pandemic of COVID-19. P.20 12. High ability of generating cash-on-hand P.36 13. Achieve stabilized DPU target with stability and growth potential P.21 13. Sustainability Initiatives P.37-42 14. Notes (1) P.22-23 14. Management message P.43 15. Notes (II) P.44-45 ÆON REIT Investment Corporation 2#3Table of contents (2/2) III. Appendix 1 Features of AEON REIT Investment Corporation IV. Appendix 2 Numeric data 1. Corporate philosophy and policy P.47 1. Balance Sheet of 21st FP (as of Jul. 31, 2023) P.62 2. Portfolio development policy P.48 2. Statements of income of 21st FP (as of Jul. 31, 2023) P.63 3. Summary of portfolio (Jul. 31, 2023) P.49 3. Portfolio list P.64-65 4. Properties owned by AEON REIT (As of end of Jul. 31, 2023) P.50 4. Appraisal value P.66-67 5. Expansion of asset size since listing P.51 5. Major revitalization investments with rent increase P.68 6. Growth of DPU and NAV per unit P.52 6. Revitalization investment cases P.69 7. Transition of Property Tax Benefit from asset acquisition P.53 7. Performance trends of stores in the portfolio P.70-71 8. Overview of overseas properties P.54 8. Average cap rate P.72 9. Schemes for acquisition of overseas properties P.55 9. Status of debts P.73-74 10. Overview of logistics facilities P.56 10. Unit price chart. P.75 11. About AEON Group (1/3) ~ Pipeline support P.57 11. Composition of unitholders P.76 12. About AEON Group (2/3) - Overview of the group ~ P.58 12. Notes (IV) P.77-78 13. About AEON Group (3/3) ~ Major large-scale retail properties ~ P.59 13. Disclaimer P.79 14. Notes (III) P.60 ÆON REIT Investment Corporation 3#421st FP (Jul. 2023) Financial Results Presentation Material I. 21st FP Financial Result/ Forecast for 22nd FP and 23rd FP ÆON REIT Investment Corporation#5Executive Summary 1 Continuing stable operations, achieving DPU growth towards mid-term target 21st FP actual 22nd FP forecast 3,350 yen (Jul. 2023) 20th FP actual: 3,283 yen (Jan. 2024) 23rd FP forecast (Jul. 2024) 3,335 yen Stabilized DPU (Note 1) 3,350 yen DPU in the 21st FP was 3,350 yen, outperforming the previous period ► Forecasting 3,335 yen for the 23rd FP (decline is in relation to the removal of property tax effect) End tenant occupancy as of the end of 21st FP was 97.8%, End tenant sales robust at 108.2% year on year (Note 2) 2 Highlights ▸ External growth Acquired 2 properties: AEON MALL Wakayama and AEON MALL Miyakonojo Ekimae Signed pipeline support contract with United Super Markets Holdings Inc. (U.S.M.H) ▸ Internal growth Increased rents through refurbishments and property expansions that enhance competitiveness of properties Finance Achieved upgrade of long-term issuer rating, due to expansion of asset size and stable cashflow Japan Credit Rating Agency, Ltd. (JCR) AA- (Positive) ⇒ AA (Stable) ▸ Sustainability Achieved target for ratio of third-party certified properties Progressing with construction work to reduce electricity usage by air-conditioning systems, to lower the environmental footprint ÆON REIT Investment Corporation LO#621st FP (Jul. 2023) financial summary The addition of newly acquired properties contributed to DPU growth, leading to the 67 yen period-on-period increase (Unit million yen) Difference from forecast (A-B) 21st FP Ended Jul. 31, 2023 20th FP Ended Jan. 31, 2023 Result Intial Forecast Differences Amount Result Differences Item no. Item (mm yen) A B A-B C A-C Increase in distribution from rent growth and currency gain +16 (1) Increase in insurance claims received +21 Operating Revenues 21,008 20,959 +48 19,987 4 +1,020 Increase in repair & maintenance expense +92 Decrease in fund cost ▲39 Operating Expenses 13,037 13,014 (2) +23 12,367 5 +670 Decrease in depreciation ▲24 Operating Income 7,970 7,945 +25 7,620 +350 Decrease in leasehold amortization etc. for newly acquired properties 16 Decrease in other expenses 15 Ordinary Income 7,048 7,019 +28 6,713 6 +334 Period-on-period difference (A-C) Extraordinary Income 76 Amount 76 Item no. Item (mm yen) Increase in operating revenue from the addition of newly acquired properties +992 Extraordinary Loss 65 8 65 Increase in operating cost from the addition of newly acquired properties +494 Increase in repair & maintenance expense +115 Net Income 7,047 7,019 +28 6,724 (5) +323 Increase in insurance premium +33 Increase in fund cost +17 Reversal of dividend reserves +65 +96 31 10 +76 (6) Increase in financing cost 16 Decrease in relation to the insurance claim for Typhoon 14 in Sep. 2022, received in the previous period 76 ΝΟΙ 14,476 14,533 56 13,777 +698 8 Decrease in losses related to Typhoon 14 in Sep. 2022 65 Distributions per Unit (yen) (Note) 3,350 3,350 3,283 +67 ÆON REIT Investment Corporation 00#721st FP (Jul. 2023) DPU - Actual vs Forecast analysis 3,350yen Increase in repair & maintenance expense Decrease in depreciation 2 Difference between forecast and actual, resulting from assessment of leasehold amortization etc. following inclusion of newly acquired properties Decrease Initial amount of in leasehold Decrease 44yen +11yen reversal of dividend reserve amortization etc. 8yen in other expenses 7yen 3,350yen 3,350yen Amount of Planned Decrease in financing cost +46yen Decrease in fund cost +lyen 30yen +20yen Total reversal from dividend reserve 31 yen reversal of amount of dividend reserve 31yen reversal of dividend reserve 38yen Insurance claim Planned amount of reversal of Impact of currency gain received etc. +15yen Increase in operating cost dividend etc. reserve 46yen +8yen <Dividend reserve > Reversal Increase Balance at end of FP 20th FP (actual) ¥195 mm ¥429 mm 21st FP (actual) ¥10 mm ¥440 mm 22nd FP (forecast) 23rd FP (forecast) ¥65 mm ¥374 mm ¥80 mm ¥293 mm 21st FP Actual 21st FP Forecast (Note 1) Amounts may not add up due to rounding of decimals (Note 2) The number of investment units issued in the 21st FP: 2,123,952 units ÆON REIT Investment Corporation 22nd FP Forecast 7#822nd FP (Jan. 2024), 23rd FP (Jul. 2024) forecast Aiming for steady growth towards mid-term target of stabilized DPU of 3,600 yen 22nd FP Ended Jan. 31, 2024 (Unit mm yen) 23rd FP Ended Jul. 31, 2024 Forecast Announced Differences Forecast Announced on Sep. 13, 2023 Forecast Announced on Mar. 17, 2023 Differences on Sep. 13, 2023 A B A-B C C-A Operating Revenues 20,976 20,957 +19 20,997 4 +20 Operating Expenses 12,956 12,959 A2 12,983 +26 Operating Income 8,019 7,998 +21 8,013 ▲6 Ordinary Income 7,036 7,020 +16 7,004 6 A32 Net Income 7,036 7,020 +16 7,004 32 Reversal of dividend reserves 80 96 ▲16 80 +0 Distributions per Unit (\) 3,350 3,350 3,335 ▲15 Present 22nd FP forecast VS previous forecast (A-B) 23rd FP forecast VS 22nd FP forecast (C-A) Amount Amount Item no. Item (mm yen) Item no. Item (mm yen) Increase in rental revenue and dividends received Increase in financing cost +21 4 Increase in rental revenue +19 ▲ 5 Decrease in leasehold amortization etc. for newly acquired properties Precondition: Currency rate used for the forecast of 22nd FP and 23rd FP 1RM = 28.00 JPY Number of investment units issued in the 22nd FP and 23rd FP 2,123,952 units Start booking property tax expenses for properties acquired in 2023 +147 16 Decrease in depreciation ▲139 Increase in repair & maintenance expense +62 Decrease in fund cost ▲35 (6) Increase in financing cost ▲25 8 ÆON REIT Investment Corporation#9Progress towards Mid-term target Stabilized DPU Top Priority ~ (Note 1) Steady growth through property acquisitions Announcement of Mid-term target Mid-term target Asset size Priorities ~ ~ 21.3bn yen growth since Long term issuer rating (JCR) ~ Priorities ~ Upgraded to AA by JCR in June 2023 Achieved rating set in mid-term target announcement of mid-term target Mid-term target Announcement of Mid-term target Announcement of Mid-term target At the end of 21st FP Mid-term target 3,270 yen I I I 468.3 bn 3,335 yen 13,600 yen 600.0 bn yen Achieved 447.0 bn yen yen AA- (Positive) AA (Stable) Assumptions at the end of the FP Jul.2022 (19th FP) Jul. 2023 (21st FP) Sustainability ~ Priorities ~ Jul. 2022 (19th FP) Jul. 2023 (21st FP) External evaluation (GRESB Rating and MSCI ESG Ratings) Aim to maintain and further improve evaluation 5 5 Stars Stars Stars 5 Stars/ GRESB (Note 2) 3 Stars BBB MSCI (Note 3) BB BB BB BB 2019 2020 2021 2022 2023 Mid-term target ÆON REIT Investment Corporation Jul. 2022 (19th FP) Jul. 2023 (21st FP) AA Ratio of third-party certification (Note 4) Achieved the mid-term target ratio of certified properties, for both "4 or higher" and "3 or higher" (Note 5) Aim to maintain ratio of certified properties and evaluations Achieved i 82.5% ⭑4 or higher 80.4% 80.4% 76.8% I maintain 80% or higher Achieved ★3 or higher 84.9% 84.9% 81.1% 86.8% maintain 85% or higher | Jul. 2022 (19th FP) Jan. 2023 After 7th (20th FP) follow-on offering Jul. 2023 (21st FP) Mid-term target 9#102 External growth (1/3) - Growth utilizing the comprehensive strength of AEON Group ~ 2 Securing and expanding pipeline from support partners Progress in 21st FP Acquired 2 properties (total of 21.3 bn yen) from total pipeline (Note) Approx. 20bn yen expansion of total pipeline Total pipeline Total pipeline 260.0 bn yen (as of the end of Jul. 2023) Properties operated by support companies Addition of a support partner Progress in 21st FP Signed pipeline support contract with U.S.M.H ▸ Steadily expanding the number of pipeline support partners Will continue to add pipeline support partners, to establish a structure in which AEON REIT can constantly receive information on high- quality acquisition opportunities ÆON REIT Investment Corporation Properties operated by other Group companies No. of pipeline support companies 12-13 10#11External growth (2/3) ~ Introduction of initiatives ~ Enhance property acquisitions and add support partners, towards achieving the mid-term target Property acquisition from pipeline AEON MALL Wakayama Location ABON MALL Wakayama city, Wakayama Acquisition price 16.8 bn yen Appraisal NOI yield 6.0% AEON MALL Miyakonojo Ekimae Miyakonojo Location city, Miyazaki Acquisition price 4.4 bn yen Appraisal NOI yield 7.1% Largest shopping mall in the prefecture, which consisting of five floors and located in a continuously growing new town New pipeline support contract with U.S.M.H Overview of U.S.M.H A joint holding company of The Maruetsu, Inc, KASUMI CO., LTD. And MaxValu Kanto Co., Ltd. engaged in the supermarket business in the greater Tokyo area Consolidated sales of approx. 690bn yen (Note) The Group operates 529 stores (Note) LANDE Community-focused mall responding to diverse needs Significance of the initiative U.S.M.H will aggregate needs within the Group for property disposals Expand scope of properties other than large-scale retails facilities /EON イオンリート > Information provision etc. U.S.M.Holdings maruetsu KASUMI MaxValu マルエツ ÆON REIT Investment Corporation マックスバリュ関東株式会社 Property ownership/operation 11#12External growth (3/3) - Development status of AEON MALL Ota expansion building ~ Construction of the expansion building is progressing according to schedule, towards the opening next spring Development of expansion building of AEON MALL Ota ▶Including the owned existing buildings, expecting for stable income over the medium to long term and asset value improvement. Anticipated schedule FP Jul. 2022 FP Jan. 2023 FP Jul. 2023 FP Jan. 2024 FP Jul. 2024 Signed contract to develop expansion building Start construction of expansion building Jul. 2022 Jan. 2023 (AEON MALL Ota) Refurbishment of existing building Completion and opening of expansion building Spring of 2024 Plan for expansion of the no. of specialty stores (Note2) approx. 150 stores →190 stores Notes regarding the development By concluding expansion development agreement with AEON MALL Co., Ltd., AEON REIT will have the preferential negotiation rights (Note 1) regarding the transfer of title, rights and obligations under the contract for the construction of the extension building In the event that expenses are incurred due to the development of the extension building, DPU will be leveled by reversal of dividend reserve, etc. Expansion building (image) EON MALL Site of expansion building (Note 3) ÆON REIT Investment Corporation ALON B As of Jun. 2023 12#13Utilization of abundant cash-on-hand Flexibly utilize abundant cash-on-hand generated from depreciation expenses according to the environment Depreciation expenses (Before and after of new properties acquisition) (Note 1) 10.9 bn yen Increase in depreciation, due to property acquisitions etc., which generates cash-on-hand 10.3 bn yen BON MALL AEON MALL Wakayama AEON MALL Miyakonojo Ekimae Before properties acquisition After properties acquisition Cash-on-hand utilization simulation (Calculated with 5.0 bn yen) Improve profitability Stabilize financial base Promotion of capital policy (Note 2 • 3) Property acquisition Revitalization investment Assumes the acquisition of properties with NOI yield of 6.2%, NOI yield after depreciation of 3.9% LTV control Resilience Assumes repayment of debt with an average interest rate of 0.8% Paying dividends in excess of earnings Share buyback Assumes acquisition and cancellation of treasure units at the price of 120,000 yen. Borrowing is to be repaid at the same time in order to maintain the LTV. DPU Approx. 45 yen increase Approx. 8 yen increase Approx. 39 yen increase LTV No change FCF Approx. 0.1 bn yen increase Approx 0.6% decrease No change No change No change ÆON REIT Investment Corporation 13#142 Internal growth (1/3) ~ Main topics of 21st FP ~ Engaged in revitalization investment to capture needs of family customers, to further enhance property competitiveness Rent growth through revitalization investment AEON Chigasaki-Chuo SC ~ Property Overview of construction Floor replacement work AEON Chigasaki-Chuo SC Construction work to enhance functionality Master lessee refurbished the entrance and food court. AEON REIT was in charge of replacing the floor Able to provide a cleaner and more. comfortable interior environment by replacing the floors with durable and easy-to-maintain floors Investment amount 11 mm yen Rent growth vs investment (annual) +6.0% Entrance FOOD COURT Food court Cater to various needs of the local community, through 2 AEON facilities that are based on different concepts Within 10-minute walking distance from AEON Chigasaki-Chuo SC is Soyora Shonan Chigasaki, operated by AEON Group Cater to a wide range of needs from the local community, by differentiating tenants and merchandise, leveraging on the features of each facility • Features of AEON Chigasaki-Chuo SC • Has one of the largest kids' floors in the Shonan area, to accommodate family needs Strengthened the home fashion offering, by enhancing the bedding area, and introducing a popular interior brand ÆON REIT Investment Corporation Park Civic culture hall City hall Hiratsuka To JR Chigasaki Sta. Yokohama AEON Features of Soyora Shonan Chigasaki • Attractive line-up of specialty stores, including large home center, household items shop, outdoor item shop, etc. • Covers various services necessary for everyday life, including hospital, gym, beauty salon, cinema 14#15Internal growth (2/3) ~ Main topics of 21st FP ~ Engaged in revitalization investment in accordance with changes in local environment, contributing to the development of a sustainable local community Rent growth through revitalization investment - AEON MALL Morioka ~ Property AEON MALL Morioka Overview of construction Shutter installation work due to area expansion Renewal in line with the opening of the new station The closest station to AEON MALL Morioka, JR Tazawako Line Maegata Station newly opened in Mar. 2023 Refurbishments were carried out in stages starting about a year ago in conjunction with the opening of the new station Station opened Work of area expansion (Revitalization investment) ~ Investment amount Rent growth vs investment (annual) 38 mm yen +8.2% Overview of the renewal ► About 20% of the tenants were replaced by Master lessee ►Installation work for fireproof shutters necessary to attract tenants was carried out by AEON REIT Two sections were merged into one, attracted general store opened in Iwate prefecture for the first time Tenant replacement area Tenants replacement in stages 2022 Apr. 2023 Mar. Apr. Jun 1 minute walk from Maegata Station to AEON MALL Morioka Maegata Sta. Morioka IC AEON MALL Morioka 1 AEON REIT Investment Corporation 46 To Morioka Sta. Expanded tenant area by section adjustment work, attracted a popular apparel store (One of the largest sales floor area in the northern Tohoku) 15#16Internal growth (3/3) Future plans ~ Aim to maintain and enhance property value, and raise rents, through continuous revitalization investments Rent growth through revitalization investment ~ AEON Ueda SC ~ Property Actual Completion of construction 18th FP Overview of construction Exterior wall painting AEON Ueda SC Plan 22nd FP Large-scale refurbishment Total Investment amount Rent growth vs investment (annual) 271 mm yen +6.5% 892 mm yen +6.5% 1,163 mm yen Plan for revitalization work ►Started revitalization work, based on agreement at the time of acquisition. Completion expected in the 22nd FP Acquisition Exterior wall painting Large-scale refurbishment work Plan for revitalization work ► Changed zoning of GMS sales floor area and changed floor, etc., to improve circulation of customers when shopping ►Newly introduced gathering space, and play area with wooden toys, to create a mall environment that is comfortable for everyone Oct. 2020 2021 Oct. 2022 Aug. ~ Signed Basic Agreement regarding revitalization work with subsequent rent increase (To be conducted by Feb. 2025) (Example) Change floor layout to enhance circulation of customers/Tenant leasing to make specialty store zone more attractive / Renewal of food court, etc. ÆON REIT Investment Corporation Introduced play area with wooden toys Changed floor with good visual effects 16#17Finance 2 Upgrade of external credit rating ~ Continuing to adequately control financial metrics, while continuing to grow, with the aim of maintaining and improving ratings. With the recent upgrade, AEON REIT will consider maintaining and lowering the funding cost, as well as further diversifying the sources of funding. Improvement of long-term issuer rating (*the numbers below are: As of when the REIT obtained the rating (as of the end of the 2nd FP) The end of the 21st FP) Since obtaining credit rating, the size of the REIT continuously grew Corporation Size of Investment Asset size 158.3 bn yen 468.3 bn yen Interest- bearing debt 67.0 bn yen 188.4 bn yen No. of properties 16 Depreciation 3.3 bn yen (Note 1) 49 10.9 bn yen Adequately controlled financial metrics, while growing asset size LTV 43.4 % (including deposits) 44.8 % Debt capacity (Note 2) 22.0 bn yen 47.0 bn yen Funding cost 0.92% 0.78 % Initial duration 5.4 yrs 7.4 yrs of debt 26 Investment Corporation bonds (wholesale and retail) Credit rating was upgraded, thanks to our initiatives since the IPO Jointly operated specified money trust Green finance Sustainability finance Sources of funding 15 Diversification of funding Loans Financial operations rating Credit Long-term issues rating (Japan Credit Rating Agency, Ltd.) ÆON REIT Investment Corporation AA- (Stable) AA (Stable) 17#18Sustainability ~ Main topics of the 21st FP ~ Third-party certification Acquired 3 new certifications and 4 recertifications. AEON MALL Tsuchiura and AEON MALL Fukutsu have increased its rating by one from the previous certification Achieved the target ratio set in the mid-term target for both 3 stars or higher and 4 stars or higher (Note 1) Will focus onto maintaining the ratio by promoting initiatives List of certified properties in the 21st FP Environmental initiatives - Inverter installation work Conducted Inverter installation work at AEON MALL Tomakomai in Dec. 2022 and realized 49% reduction in electricity usage for air conditioners (Jan. to Jun. 2023). Conducted same work at AEON MALL Sapporo-Hiraoka. Will consider to implement same work to other properties AEON MALL Tomakomai total air conditioner electricity usage from Jan. to Jun. (kWh) ~ Reduced electricity usage by 49% (90,367kWh) Certification New/ Recertified 2022 184,919 Property name Rank AEON MALL Wakayama 2023 2023 94,552 New AEON MALL Miyakonojo Ekimae 2023★★ DBJ Green Building AEON MALL Kasai-Hojo 2023 CASBEE ESG ratings/certification AEON MALL Tsuchiura 2022★★★ Recertified Recertified AEON MALL Fukutsu AEON MALL Kahoku 2022 AEON MALL Kagoshima S Rank 2022★★ Ratio of certified properties (Note 2) (Based on total leasable area/as of Jul. 2023) Mid-term 4 stars or higher target: 80% or higher 82.5% (Note 1) Mid-term target: 85% or higher 3 stars or higher 86.8% (Note 1) The investment corporation MSCI ESG Ratings (Note 3) in 2023*: BB as same as previous year MSCI ESG RATINGS BB The asset management company Certified as a Health and Productivity Management Organization (Small and Medium Enterprise Category) for 4 consecutive years from FY2020 CCC B BB BBB A AA AAA 2023 健康経営優良法人 Health and productivity * THE USE BY AEON REIT INVESMTENT CORPORATION OF ANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES ("MSCI") DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR PROMOTION OF AEON REIT INVESTMENT CORPORATION BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED 'AS-IS' AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI. ÆON REIT Investment Corporation 18#19Summary as of 21st FP (Jul. 2023) Asset size of 49 properties (Note 1) Portfolio NOI yield Unrealized gain (Note 2) 468.3 bn yen (+21.3 bn yen from the end of 20th FP) 6.2% NOI yield after depreciation + 80.9 bn yen (+4.2 bn yen from the end of 20th FP) 3.9% Distribution per unit NAV per unit LTV (excluding deposits) 3,350 yen (Forecast 3,350 yen) 151,071 yen (+1,299 yen from the end of 20th FP) 41.6% LTV (including deposits) 44.8% ÆON REIT Investment Corporation 19#20Stable growth during the pandemic of COVID-19 Achieving both stability and growth even in harsh environments Positioning under the Infectious Diseases Control Law Transition of end tenant sales (Note 1 2) Jan. 2020 (14th FP) Jul. 2020 (15th FP) Jan. 2021 (16th FP) Jul. 2021 (17th FP) Jan. 2022 (18th FP) Jul. 2022 (19th FP) Jan. 2023 (20th FP) Jul. 2023 (21st FP) Designated Category V Infectious infectious diseases Pandemic Influenza (Novel Influenza or Re-emerging Influenza) (equivalent Category II Infectious Diseases) To represent changes from the time before the spread of the COVID-19, sales for each Jul. FP are calculated by comparing the record with FP Jul. 2019, and sales for each Jan. FP are calculated by comparing with FP Jan. 2020 88.9% 83.8% 86.9% 87.8% 93.0% Diseases 95.0% Performance of DPU Follow-on offering ONLY 73.0% Cash- on-hand Follow-on offering Follow-on offering Acquisition of AEON MALL Fukutsu Acquisition of AEON MALL Tamadaira woods Acquisition of AEON Ueda Shopping Center Acquisition of AEON MALL Takasaki and other 3 properties 3,074 yen 3,178 yen (Initial forecast: 3,125 yen) 3,184 yen (Initial forecast: 3,130 yen) 3,200 yen (Initial forecast: 3,200 yen) 3,315 yen (Initial forecast: 3,315 yen) 3,274 yen (Initial forecast: 3,270 yen) 3,283 yen (Initial forecast: 3,270 yen) Acquisition of AEON MALL Wakayama and another property 3,350 yen (Initial forecast: 3,350 yen) (Initial forecast: 3,025 yen) 14th FP 15th FP 16th FP 17th FP 18th FP 19th FP 20th FP 21st FP 20 20 ÆON REIT Investment Corporation#21Achieve stabilized DPU target with stability and growth potential Operational concerns arising from changes in the environment Master lease rent scheme (fixed rent) Secure stable rent through master lease contracts based on long- term fixed rent contracts with AEON Group companies Based on the above contract scheme, AEON REIT does not bear operation costs such as utilities and water expenses ➤ Higher operating costs due to inflation and the rise in energy prices ►Higher funding cost due to the rise in market interest rates Equity financing becoming more difficult Stability Flexible change of financing method Adapt flexibly to changes in the environment, while maintaining our current policy of long-term fixed interest funding Control funding cost by temporarily using shorter term and variable funding Strengths of AEON REIT Utilization of reversal of dividend reserve, and paying dividends in excess of earnings Utilize reversal of dividend reserve, as well as dividends in excess of earnings, to stabilize DPU Maintain stability of DPU, even when there is a temporary large expense Growth potential Utilizing the comprehensive strength of AEON Group Utilize comprehensive strength of the Group companies to secure future pipeline Maintain high level of end tenant occupancy and sales Using cash-on-hand to achieve DPU growth Generate abundant cash-on-hand through depreciation Utilize funds flexibly, depending on the environment Utilize AEON REIT's strengths, and maintain stability while continuing to grow Aim for the mid-term target of 3,600 yen stabilized DPU ÆON REIT Investment Corporation 21#22Notes (1) P.5 Executive Summary (Note 1) Stabilized DPU is the estimated amount of distribution per unit, calculated assuming that the accounting treatment of taxes and public dues of property tax, city planning tax, and other taxes (the "Taxes and Public Dues" in this Note) were recorded as rental business expenses from the time of acquisition of each assets (when the Taxes and Public Dues are not yet determined yet). The future Stabilized DPU are forecast figure anticipated by AEON REIT Investment Corporation as of the publication date of this document, which is not an indicator specified by generally accepted corporate accounting standards, nor has it been audited by an accounting auditor. (Note 2) "End tenant occupancy" is the ratio of the actual leased area (sublease area), which deducted vacant floor area from total leasable area,to the total leasable area (master lease area) for the domestic retail facilities owned by the Investment Corporation (in total 44 facilities) calculated based on the preliminary figures provided by each master lessee (as of the end of Jul. 2023). "End tenant sales" shows the comparison of end tenant sales for the 21st FP (Feb 1, 2023 to Jul.31, 2023) with that of the same FP of the previous year. Net sales of end tenants of Jun. 2023 and Jul. 2023 are calculated based on preliminary figures received through interviews with each master lessee. P.6 21st FP (Jul. 2023) financial summary (Note) No. of investment units outstanding in the 20th FP: 2,044,467, in the 21st FP: 2,123,952 P.9 Progress toward Mid-term target (Note 1) Stabilized DPU is the estimated amount of distribution per unit, calculated assuming that the accounting treatment of taxes and public dues of property tax, city planning tax, and other taxes (the "Taxes and Public Dues" in this Note) were recorded as rental business expenses from the time of acquisition of each assets (when the Taxes and Public Dues are not yet determined yet). (Note 2) GRESB refers to the annual benchmark certifications that measure ESG considerations of real estate companies and funds, as well as the organization operating the certifications. The GRESB Real Estate Certification is a 5 level rating based on the global ranking of the total score. (Note 3) MSCI is a financial services provider based in New York, USA. MSCI provides various tools to assist in investment decision making to institutional investors around the world, including asset managers, hedge funds and pension funds. The MSCI ESG rating analyzes how well companies are managing risks related to the Environment, Social and Governance, and its 7 ratings range from the highest AAA to the lowest CCC. (Note 4) The ratio of properties with third party certifications is calculated by dividing the total rentable floor area of certified properties by that of all properties owned in Japan. Third party certification refers to the DBJ Green Building certification, CASBEE certification and BELS certification, etc. (Note 5) 4 or higher refers to "4 or 5 stars in the DBJ Green Building certification", "Rank A or S in the CASBEE Real Estate Evaluation ","4 or 5 stars in BELS". 3 or higher refers to "3, 4 or 5 stars in the DBJ Green Building certification", "Rank B+, A or S in the CASBEE Real Estate Evaluation", "3, 4 or 5 stars in BELS" (as of the end of Jul 2023). P.10 External growth (1/3) - Growth utilizing the comprehensive strength of AEON Group ~ (Note) "Total pipeline" refers to the total amount of properties owned by the AEON Group and third parties, for which the Investment Corporation has submitted letter of intention to purchase in the past, and whose expiration date has not yet passed. The amount of the properties are based on the Investment Corporation's desired purchase amount. P.11 External growth (2/3) ~ Introduction of initiatives ~ (Note) Based on securities report issued by United Super Markets Holdings Inc. dated May 22, 2023. ÆON REIT Investment Corporation 22 22#23Notes (1) P.12 External growth (3/3) - Development status of AEON MALL Ota expansion building ~ (Note 1) The transfer of title, rights and obligation under the contract for the construction of the extension building to the Investment Corporation has not been determined and there is no guarantee that the acquirement will be carried out by the Investment Corporation. In addition, this preferential negotiation right is a right held by the Investment Corporation based on the floor expansion development agreement, and the Investment Corporation is not obligated to transfer the status or rights and obligations under the contract for the construction of the expanded building (Note 2) Based on press release issued by AEON MALL CO., Ltd. dated July 29, 2022. (Note 3) "Site of expansion building" is an image only and does not accurately represent the area or shape of the actual building. P.13 Utilization of abundant cash-on-hand (Note 1) Depreciation amount for "Before properties acquisition" shows the sum of the expenses for the 19th FP actual and 20th FP actual, which is before the acquisition carried out on Feb. 1, 2023, and "After properties acquisition" shows the sum of the expenses for the 21st FP actual and 22nd FP forecast. (Note 2) Assumes an investment unit price 0.8 times the NAV per unit of 151,071 yen as of the end of the 21st FP. (Note 3) Calculated using approx. 2.2 bn yen of loan repayment, and approx. 2.7 bn yen of own investment unit acquisition and cancellation. P.17 Finance Upgrade of external credit rating ~ (Note 1) Depreciation shows the sum of the expenses for the 2nd FP actual and 3rd FP actual, and the sum of the expenses for the 21st FP actual and the 22nd FP forecast respectively. (Note 2) "Loan capacity" is the approximate amount which can be borrowed if LTV (including security deposit) is raised to 50%. The said amount does not guarantee or promise that the Investment Corporation will actually be able to procure the said amount of funds. P.18 Sustainability ~ Main topics of the 21st FP ~ (Note 1) 4 or higher refers to "4 or 5 stars in the DBJ Green Building certification", "Rank A or S in the CASBEE Real Estate Evaluation ","4 or 5 stars in BELS". 3 or higher refers to "3, 4 or 5 stars in the DBJ Green Building certification", "Rank B+, A or S in the CASBEE Real Estate Evaluation", "3, 4 or 5 stars in BELS" (as of the end of Jul 2023). (Note 2) The ratio of properties with third party certifications is calculated by dividing the total rentable floor area of certified properties by that of all properties owned in Japan. Third party certification refers to the DBJ Green Building certification, CASBEE certification and BELS certification, etc. (Note 3) MSCI is a financial services provider based in New York, USA. MSCI provides various tools to assist in investment decision making to institutional investors around the world, including asset managers, hedge funds and pension funds. The MSCI ESG rating analyzes how well companies are managing risks related to the Environment, Social and Governance, and its 7 ratings range from the highest AAA to the lowest CCC. P.19 Summary as of 21st FP (Jul. 2023) (Note 1) Total acquisition price excluding expenses incurred when acquiring subject real estate etc. (brokerage fee, tax, etc.). (Note 2) Unrealized gain is calculated by deducting the book value as of the end of the 21st FP from the appraisal value as of the end of the 21st FP. P.20 Stable growth during the pandemic of COVID-19 (Note 1) "Transition of end tenant sales" represents the comparison rate of sales at domestic commercial facilities owned by the Investment Corporation as of the end of Jan. 2023 and the sales rate for each Jul. FP are calculated by comparing the record with FP Jul. 2019, and rate for each Jan. FP are calculated by comparing with FP Jan.. (Note 2) Net sales of end tenants of Jun. 2023 and Jul. 2023 are calculated based on preliminary figures received through interviews with each master lessee. ÆON REIT Investment Corporation 23#24II. AEON REIT's Strengths ÆON REIT Investment Corporation#25AEON REIT's Strengths External growth ▸ Investment in "Community Infrastructure Assets" Investing in facilities responding to social changes and being supported by communities for a long time going forward. Pipeline support Advantages of acquisition from abundant pipelines. Internal growth ▸ Strong master lease agreement Stable rent income based on Long-term and fixed master lease. ▸ Effective floor expansion and revitalization Various measures aiming for strengthening competitiveness and maintaining and improving functions. Financial strategy Funding stability Realization of various procurement methods such as retail bonds and green finances. Risk management ▸ Distribution stability Improving resilience to natural disasters by utilizing earthquake insurance and reserve funds. Strategic cash management ▸ Cash-on-hand generation capability Promotion of investment making use of abundant cash-on-hand generated from depreciation. Flexible use of cash-on-hand Choosing the best option based on the situation. Sustainability ▸ Aiming to achieve sustainable society and secure stable profits for AEON REIT from mid- to long-term perspective ÆON REIT Investment Corporation 25 25#26"Community Infrastructure Asset" localized successfully Community Infrastructure Assets defined by AEON REIT ► A community platform offering a range of tenants that is visited by people on a daily basis. ▸ A facility that responds flexibly to changes in the needs for daily life and environment which enables continuous operation for a long time going forward. ▸ A facility essential to communities that offers a place for community development. Environmentally friendly facility Solar panels installed on the rooftop and walls help reduce the environmental burden. Drive through and pick-up イオンネットスーパー Pick J5 UP! FERM BALESTRE ごください。 048-912-0464 保育關 AALALAL Prepared a lane for drivers who want to pick up items ordered on the web. Services matching with people's lifestyle 695- LAEON FON ドライブスルー (荷物受取) マイページ WAON POINT My WON PONT 1.234 NAONポイント チャージポイント 123 チャージ 12 イオンホール /EON ○○內科 ○○齒科 T Place for local exchanges and community activities Tenants visited by consumers on a daily basis Ac Meeting wide-ranging consumer needs such as a cinemas and food courts. Tenants providing public services Post office, nursery school, clinic, and other tenants providing public services. Used as a disaster control base "Regi-go": The shopping style without face-to- face communication and waiting at cash register. ÆON REIT Investment Corporation Smooth checkout through the app "IAEON". Sale of locally produced products, events for local residents, workshops, MALL walking and various other events are held. Signed disaster-relief cooperation agreement with Ground Self-defense Force and Japan Airlines. Balloon shelter that becomes an evacuation space in the event of a disaster. 26#27Points of the "Community Infrastructure Asset" Location Demographic change / Trade area/Traffic access/ Competitive environment/ Development plan residential area Building Facility Parking lot/Traffic line/ Equipment friendly to Human and Environment/ Disaster prevention base Operation Customer attraction / Operating performance / Leasing/Public features major road ENVALL Strength of trade area Ex. Trade Area Trading area population (Note 1) approx. 440,000 (10km area) Traffic access Road Traffic (Note 2) (AEON MALL Fukutsu) approx. 43,000 Hachioji Interchange on the Chuo Expressway Approx. 30,000 Robustness, Convenience Parking lot Average number of parking lots owned by one commercial facility (Note 3) over 3,000 Ex. Disaster prevention base Comprehensive cooperation agreement with local government 100% (Commercial facilities in Japan) Various incentives to visit Occupancy rate Occupancy rate of end tenants (Note 4) approx. 98% Ex. Leasing Total number of commercial facilities owned in Japan approx. 5,800 tenar tenants ÆON REIT Investment Corporation 27#28Stability of "Community Infrastructure Asset" and its rent Acquiring top-class stores in each region, which are capable for responding to environmental changes, stable profit can be expected and have abundant neighborhood markets. Stable rents are secured through master lease agreements based on fixed rents with AEON Group companies. Sublease agreement Master lease agreement Manage- ment End tenants Apparel Net sales of end tenants 21st FP (Note 2) Sundries 20th FP (Note 2) 107% approx. /EON STYLE AEON AC Food and restaurants Service Sublease rent approx. (comparison w/ same period in the year before) approx. 93% (comparison w/ same period in 2019) 108% (comparison w/ same period in the year before) approx. 95% (comparison w/ same period in 2019) Master lease companies AEON Group companies (AEON MALL Co., Ltd., etc.) Master lease rent (fixed) Master lease rent (Fixed) No utilities cost burden Outline of master lease agreement Fixed rent Long terms of lease agreements (20 yrs in Japan & 10 yrs outside Japan) /EON Owner イオンリート Stable income ÆON REIT Investment Corporation 28#29External growth ~Selective investments backed by Pipeline Support~ Through selective investments backed by Pipeline Support, AEON REIT acquires properties at adequate terms while maintaining the quality of the portfolio. Track record of selective investments ~Quality of portfolio~ AEON REIT acquires only approx. 30% of properties considered Ratio of acquisitions and no. of opportunities looked at ■Postponement of acquisition ■Acquired Track record of selective investments ~Adequate terms~ Ratio of one-on-one (exclusive) property acquisitions 100% Acquisitions through one-on-one (exclusive) transactions (Note 2) 1,583 354 (Note 1) 866 751 150 204 2013 2014 2015 2016 2017 ÆON REIT Investment Corporation 180 515 (100 million yen) 213 2018 2019 2020 2021 2022 2023 53% Exclusive transactions 47% 100% Third Party Sponsor 29#30External growth ~Further growth backed by Pipeline Support~ AEON REIT can continuously acquire AEON Group's numerous properties. The advantages of Pipeline Support Opportunities provided from AEON Group Preferential negotiation rights Utilization of warehousing function Properties operated by Pipeline Support companies (Note 1,2,3) AEON MALL Co., Ltd. AEON TOWN Co., Ltd. Japan NEW AEON RYUKYU Co., Ltd. The Daiei, Inc. AEON RETAIL Co., Ltd., AEON Hokkaido Co., Ltd., AEON KYUSHU Co., Ltd. United Super Markets Holdings Inc. AEON TOHOKU Co., Ltd. AEON GLOBAL SCM CO., LTD. AEON Food Supply Co., Ltd. 166 SC 155 SC 1,679 stores (Note 4) (GMS • SM⚫DS ⚫ HC • SuC) Total pipeline (Note 5) ¥260.0 bn Overseas AEON MALL Co., Ltd. AEON CO. (M) BHD. AEON BIG (M) SDN. BHD. 83 facilities 34 Sc 63 stores (GMS-SM DS only) ÆON REIT Investment Corporation 30#31Internal growth Enhancing values of properties~ Achieving asset value improvement and increased rent by continuous value-up investments. Cumulative amount of revitalization investment with rent increase (Note 1) Large-scale renewal Major replacement of tenants in response to changes in the trade area Floor expanding Enhancing motivation to visit the store by increasing number of tenants ¥6.2 bn (as of Jul. 31, 2023) Cumulative amount of annual rent increased by revitalization investments (Note 2) (Unit: mm yen) competitiveness Strengthen property Maintain and improve property functions 480 460 Equipment renewal work Energy efficiency improvement by introducing the latest equipment Improvement of customer comfort Exterior wall construction 440 420 400 Floor replacement work 380 Improvement of property image through exterior renewal 360 Disaster prevention/ mitigation work Suppression and minimization of damage caused by earthquakes Early restoration of sales 340 ZEON 320 300 Exterior wall painting Jan. 2022 (18th FP) Jul. 2022 (19th FP) Jan.2023 (20th FP) ÆON REIT Investment Corporation Jul.2023 (21st FP) Jan.2024 (22nd FP) Forecast 31#32Financial policy ~Stable funding~ Steadily working on securing stable funding in preparation for potential changes in the surrounding environment. The 4 pillars of our stable funding (=A structure that enable us to receive funding at any time) Diversification of lenders and sources of funding Mainly loans from financial institutions Inconsideration of refinancing risk, raising funding in diverse ways, including REIT bonds, making use of AEON Group's strong publicity Sources of funding Stabilization of funding cost ► Pursuing cost reductions by issuing long-term low interest REIT bonds ▶REIT bonds are controlled within 40% of total interest-bearing debt (upper limit is 50%) Lower cost of funding LTV control Range of 43-47% ►Ability to raise debt allows flexible property acquisitions Decentration of maturity dates ►Focusing on debt with duration of 5-7 years, in order to control market risk Taking advantage of favorable environment, and securing long- term fixed interest debt (IPO) (As of the end of 21st FP) (IPO) (As of the end of 21st FP) 15▸ 26 Relationships with financial institutions (IPO) 100% Loans (As of the end of 21st FP) Loans Wholesale bonds Retail bonds Joint money trusts Green financing Sustainability financing 0.92% 0.78% Ratio of REIT bonds 27.1% Wholesale bonds ¥6.0bn Retail bonds ¥45.0bn LTV (excluding deposits) (including deposits) 41.6% 44.8% Available capacity (up to LTV 50%) Initial duration of debt (IPO) (As of the end of 21st FP) 5.4yrs ▸ 7.4yrs Long-term debt ratio 95.1% (IPO) (As of the end of 21st FP) ¥22.0 bn ¥47.0 bn Fixed interest debt ratio 92.8% ÆON REIT Investment Corporation 32 32#33Financial strategy Financial management~ Financial management Interest-bearing debt balance 21st FP (Ended Jul. 2023) 9.3billion 188.4billion Rating Credit rating agency Japan Credit Rating Agency Rating target Long-term issuer rating Rating Outlook AA Stable Breakdown of interest-bearing debt 20th FP (Ended Jan. 2023) New borrowing amount (Note) 20.8billion 179.1billion of which, investment corporation bonds 51.0billion 51.Obillion Initial period remaining 7.8yrs 7.4yrs Avg. number of years remaining 4.4yrs 3.7yrs Avg. cost of interest bearing debts 0.81% 0.78% Ratio of long-term and short-term Debts 100.0% 95.1% Money Trust 2% Fixed interest rate ratio 97.7% 92.8% Investment corporation bond (For Institutional investor), 3% Jointly-Operated Specified Investment corporation bond (For Retail) 24% as of Jul. 31, 2023 Local bank LTV (including deposits) 44.6% 44.8% 9% Available capacity (up to 50%) Approx. 46.0 billion Approx. ¥47.0 billion Megabanks 35% Loan and trust company 16% Assurance company 1% Leading bank 4% Government-controlled bank Decentration of maturity dates (as of Jul. 31, 2023(21st FP)) (100 million yen) New debt financing Existing Borrowings 6% investment corporation bonds 93 66 132 222 204 204 203 195 180 150 120 55 20 10 20 टेरे 2023 2024 2025 2026 2027 2028 2029 2030 2031 10 2036 33 ÆON REIT Investment Corporation#34Financial strategy ~LTV & Cost trends~ LTV trends Loan capacity (Note) Approx.¥47.0bn 44.8% 44.9% 44.7% 44.5% 44.6% 44.8% 41.3% 41.4% 41.4% 41.2% 41.6% 41.3% 16th FP (Ended January 2021) 17th FP (Ended July 2021) 18th FP (Ended January 2022) LTV (including security deposit) 19th FP (Ended July 2022) 20th FP (Ended January 2023) LTV (Excluding security deposit) Interest-bearing debt average financing period and cost trends Initial period remaining to maturity (year) Average period remaining to maturity (year) 7.9 yrs 0.77% 7.9 yrs 7.3 yrs 0.73% 0.77% 7.9 yrs 0.78% 21st FP (Ended July 2023) Average of procurement interest rate (%) 7.8 yrs 7.4 yrs 0.78% 0.81% 4.4 yrs 3.7 yrs 4.4 yrs 4.3 yrs 4.9 yrs 4.4 yrs 16th FP (Ended January 2021) ÆON REIT Investment Corporation 17th FP (Ended July 2021) 18th FP (Ended January 2022) 19th FP (Ended July 2022) 20th FP (Ended January 2023) 21st FP (Ended July 2023) 34#35Risk management - Resilient to natural disasters~ 2 Growing into a REIT that is highly resistant to sudden disasters. Diversified investment Diversification of investment area and acquisition price per property 28 Prefectures + Fire insurance and earthquake insurance coverage Guarantee earthquake insurance (content updated in 2022) for domestic portfolio Amount of insurance for earthquake insurance: ¥2.0 bn (immunity of ¥50 mm (Note 2)) Fire insurance also covers wind and flood damage from typhoons and heavy rains Facility liability insurance also covers business indemnity Malaysia (As of Jul. 31, 2023) <earthquake risk status> Domestic Portfolio PML (Note 3) <earthquake risk status> PML (%) 1.3% (As of Jul. 31, 2023) Expected maximum loss approx.¥5.2 bn Target property / Domestic owned properties 47 properties Investment Area Limit of payment (immunity of ¥50mm (Note 2)) Insurance premium (annually) ¥2.0 bn ¥436 mm Abundant cash flow approx. ¥10.9 bn per year (Note 1) of cash-on-hand generated by depreciation expense can be utilized for natural disasters, etc. Additions to reserve for dividends Balance of distribution reserves at the end of 22nd FP : ¥374 mm (forecast) Planned to be utilized to maintain the stability of distributions when revenues decrease temporarily due to natural disasters and other causes ÆON REIT Investment Corporation 35 55#36High ability of generating cash-on-hand Realizing growth with abundant cash-on-hand generated by high depreciation rate among J-REIT Depreciation expenses that is the source of cash-on-hand Percentage of depreciation expense ratio to property book value (Note) AEON REIT J-REIT A J-REIT B J-REIT C 1.7% 1.7% 1.7% 2.6% No.1 In J-REIT Transition of depreciation expenses (bn yen) 5.5 5.4 5.2 5.1 5.2 5.1 4.5 4.6 4.6 4.6 Source: Created by the Asset Management Company based on disclosure materials of listed J-REITS as of the end of July 2023. Examples of utilization of cash-on-hand Jan. 2020 (14th FP) Jul. 2020 Jan. 2021 (16th FP) (15th FP) 2019 2020 Utilized amount ¥5.5 bn ¥5.3 bn Usage Property acquisition through public offering Property acquisition using cash-on-hand Property name AEON MALL Fukutsu AEON MALL Tamadaira woods ÆON REIT Investment Corporation Jul. 2021 (17th FP) Jan. 2022 (18th FP) Jul.2022 (19th FP) Jan. 2023 (20th FP) Jul. 2023 (21st FP) Jan. 2024 (22nd FP) Forecast Jul. 2024 (23rd FP) Forecast 2021 ¥6.0 bn Property acquisition through public offering 2022 ¥0.5 bn Revitalization work for improving competitiveness 2023 ¥1.5bn Property acquisition through public offering AEON MALL Takasaki AEON Ueda Shopping Center N MALL AEON MALL Shinkomatsu NON MALL AEON MALL Kurashiki AEON MALL Wakayama CON AEON MALL Narita AEON MALL Sagayamato AEON MALL Shimotsuma AEON MALL Miyakonojo Ekimae 36#37Sustainability Initiatives AEON REIT ~ 2 AEON REIT is promoting sustainable management by cooperating and enhancing each other with the stakeholders. Received 5 Stars (the highest rating) in the GRESB Real Estate Assesment 2022 (Note) Social Solar power generation facilities Environment Wall afforestation Human capital development S E Events in the malls Initiatives to reduce water and waste Tree- planting Energy conservation initiative Renewal of air conditioning equipment Disaster prevention and mitigation equipment LED lighting EV charging facilities Continuous use of the facilities • Customer's feedback (requests) Stable supply of daily necessities A place of relaxation for the community • To be used as a disaster prevention base in case of emergencies Customers and local communities ÆON REIT Investment Corporation Childcare and medical facilities Measures against infectious diseases Governance G Same boat investment Disaster prevention cooperation agreement with regional governments Creation and maintenance of local employment Public tenant Gender equality Unitholder value and linkage compensation system and Impediment removal Conflict of interest management Transparent decision-making process Transactions with appropriate interested parties EON イオンリート ⚫ Creating facilities that can attract customers • Increase in ability to attract customers through revitalization investment • Capabilities of facility management ⚫ Sponsor support and pipeline support • Increase in property value through revitalization investment Capabilities of Professional Operation • Participation in volunteer activities Diversification of workstyles • Initiatives to promote health Clients (Tenants, etc.) AEON group Employees • Provision of investment funds ⚫ Stable Growth in distributions • Provide investment opportunities Investors 37#38Importance to Stakeholders Sustainability Initiatives Materiality ~ ~ Materiality (Note 1) setting ➤ AEON REIT set 14 topics as its Materiality from sustainability issues and selected 8 as its priorities. ▸ AEON REIT will focus on 8 priorities for a while and consider specific measures and KPI for each topic. Materiality Matrix (Note 2) Priorities Utmost Important Important Local community engagement and sustainable development Opportunities in Green buildings Corporate governance- Compliance and Risk management- Sublease tenant engagement Master lessee engagement Human capital development ÆON REIT Investment Corporation Energy management of the Asset Management Company: Child labor and Forced labor Water management Climate change Safety and security of owned properties Biodiversity and land use Fair and healthy environment of workplace Importance to AEON REIT Utmost Important Environment Social GLEAM WALTER AFFORDABLE AND E AND SANITATION CLEAR ENERG Opportunities in Green buildings Climate change 12 RESPONSIBLE CONSUMPTION AND PRODUCTION 13 GLINATE ACTION 14 15 CLINATE 13 Biodiversity and land use S Local community engagement and sustainable development Safety and security of owned properties Human capital development HEALTH AND WELL-BOING 2001 HILTH AND WELL-BONG DECENT WORK AND ECONOMIC NEWTH M 11 SISTNINABLE OME AND COMMENTS HOUST AND INFRASTRUCTURE QUAUTY EDUCATION SUSTAINABLE MES ST COMMENTS DECENT WORK AND EDNOMENEWITH Governance G Corporate governance PENGE JUSTICE 16 ANL SIGUAL INSTITUTIONS Compliance and Risk management 16 PEIGE, JUSTIGE AND STRONG INSTITUTIONS 38#39Sustainability Initiatives Environment ~ 2 Environment E Reduction targets for energy consumption and CO2 emissions E AEON REIT aims to reduce the annual average of 1% of its energy consumption intensity and CO2 emission intensity in the medium and long term in the entire portfolio and individual property. As a target for FY 2019, AEON REIT aims to reduce 5% of energy consumption and CO2 emission for the five years from FY 2020 to 2024, compared to the figure of FY 2019. EE Property certification 86.8% Ratio of properties with Third-party certification (Note) (Based on total leasable area/as of Jul. 2023) DBJ Green Building Certification AEON MALL Examples of initiatives for energy efficiency DBJ Green Building 31 properties AEON MALL Kurashiki Attracting customers and conserving Jun. 2023 AEON MALL Wakayama Acquisition the environment at the same time Environment 壁面緑化にはKNOX ●こ のパネルでした、クワクします solar panel WAKU CASBEE Certification of real estate appraisal THE RE 34 905 62 AULE CASBEE 三不動產-2020 S rank 4 properties tree-planting (highest rating) BELS Mar. 2023 AEON MALL Kagoshima (Other 3 properties) BELS Certification CON Feb. 2020 wall afforestration garden mist 1 property AEON Minami-Osaka RDC 39 ÆON REIT Investment Corporation#4040 40 Sustainability Initiatives Social ~ ~ 2 Social S Initiatives at owned properties Employment retention Offering disaster prevention bases Social S Initiatives of the asset manager Creating a comfortable working environment 2022 健康経営優良法人 Health and productivity Continued operations despite COVID- 19 pandemic and contributed to maintaining employment in the region Public tenants ハートブラ Including public tenants, such as administration office. Offering facilities as evacuation and supply base in case of emergencies diversity みんなのトイレ M413 Installed restrooms for everyone (Genderless) In 2022, the asset management company was acknowledged by the government (Ministry of the Economy) as a company focused on health and productivity Various initiatives for health promotion (Food and nutrition/Sleep seminar, etc.) ► Conducting employee satisfaction survey ► Conducting walking events Stress checks and arranging mental health training course ► Lessening overtime by complying thoroughly to the law Installation of Whistle blowing system Promotion of telework and off-peak commuting Human Resource Development Utilizing Approx. 1% of the annual operating revenue of the Asset Management Company for human resource development ► Introduced skill and career development support system Providing variety of training courses for every employees Creating a place for local community Type of training NO. qualification name holders Compliance 9 times Business 6 times Real Estate Transaction Agent ARES Master 17 people 12 people ΤΩΝ ΗΛΙ Safety and Health System and Others Total 7 times 18 times 40 times Certified Real Estate Consulting Master 3 people (As of the end of Jul. 2023) (from Mar. 2022 to Feb. 2023) Various events such as mall walks and festivals are held. Providing multipurpose hall "AEON Hall", which is used by local governments and various regional groups ÆON REIT Investment Corporation Community contribution activities Conducting local cleanup programs for revitalization of local communities In addition to participating in various fundraising activities of the Aeon Group, donating to "AEON 1% Club Foundation" (Note) (FY2023 donation results: 13.5 mm yen) 40#41Sustainability Initiatives Governance and Others ~ Governance 2 G Governance Transparent decision-making process Added 1 executive to the Investment Corporation from Oct. 29, 2021. (4 in total) Attendance and approval of outside committee members is required to pass resolutions. STOP STOP Investment committee A Compliance committee Investment remuneration system linked to investor value Investment remuneration! Investment Total assets x 0.3% (max. rate, yearly) + Before deduction DPUX NOI x remuneration II 0.001% (max. rate) Same boat investment by AEON Group AEON Group's stake in AEON REIT: approx.17.3% (as of Jul. 2023) Sustainable finance Sustainability finance "The highest" SU1 acquisition (JCR) Sustainability bonds (Retail) Sustainability loan (including Sustainability Derivatives) Green finance "The highest" Green1 acquisition (JCR) ¥12.0 billion ¥18.0 billion Green bonds (Retail) ¥5.1 billion Green trust loan ¥3.3 billion Impact report FY2020 1. Energy consumption (electricity, gas) and Green house gas emission rate Greenhouse gas Classification Qualified assets properties 29 total 72.5% intensity Electricity (kWh, kWh/m²) 447,966,601 Gas (m², m³/m²) 1,716,276 (t-CO2, t-CO2/m) 151 0.6 189,191 0.0639 Non- qualified assets properties 11 % total 27.5% intensity 102,520,051 2,363,400 49,346 194 4.5 0.0936 % 2. Name of properties applicable for sustainability finance and social projects Applicable properties AEON MALL Ishinomaki AEON MALL Mitouchihara AEON MALL Shinkomatsu Social projects applicable for finance 1(a) Total no. of employees 2(b) Disaster prevention agreement ①(a) Facilities that are sufficiently creating local employments Approx. 1,400 Concluded 2(b) Facilities that are able to supply necessary resources and evacuation space at the time of Approx. 3,490 Concluded disaster by concluding a disaster prevention agreement with a local government Approx. 2,300 Concluded 41 ÆON REIT Investment Corporation#42Sustainability Initiatives - AEON GROUP ~ 2 Aeon strives to ensure Group growth while helping to realize a sustainable society in accordance with the basic principle of pursuing peace, respecting humanity, and contributing to local communities, always with the consumer's point of view as its core. AEON Decarbonization vision Switching 50% of the electricity used in stores in Japan to renewable energy by 2030 Aeon Decarbonization Vision For the realization of a "decarbonized society." Aeon has established "Aeon Decarbonization Vison" as well as an interim greenhouse gas emission reduction target to be achieved by 2030 Aeon will work to reduce CO. and other greenhouse gas emissions (hereinafter "GHG) by talking the following three-pronged approach, thereby contributing to the realization of a decarbonized society. We will reduce the total GHC emissions from our stores to zero. Products and Logistics We will continue our efforts to achieve zero- GHC emissions from business operation. Hand in Hand with Customers Stores We will cooperate with our customers for the realization of a decarbonized society. Interim Targets Means for achieving the target [How our initiatives have developed] 2008 Switch 50% of electricity used in stores About 90% of Aeon's CO emissions are attributable to electricity renewable energy by 2030 (in Japan) Reduce energy consumption at stores and switch to renewable energy Energy conservation Renewable energy Aeon Manifesto on the Prevention 2011 2012 Aeon's of Global Warming eco project (2012-2020) (2008-2011) 2018- 2020 2030 2040 Aeon Decarbonization Vision Revised July 2021 Clear policies for each field Established basic group policies for each field based on social demands. Sustainable Procurement Policy Aeon Basic Policy Human Rights Policy Information Security Policy Health management statement Food waste reduction targets Plastic Usage Policy Biodiversity Principle Comprehensive partnership agreements AEON COVID-19 Protocol for Infectious Disease Control BCM In cooperation with the Japan's Self Defense Force and Japan Air Line Target: 100 temporary local shelters (65 locations as of the end of Feb. 2022) ÆON REIT Investment Corporation Diversity 2025 Target Female managers ratio 50% (26.2% as of the end of Feb. 2023) NADE SHI KO E2021 2023 健康経営優良法人 Health and productivity ホワイト 500 42#43Management message MANAGEMENT MESSAGE President and Representative Director Nobuaki Seki AEON REIT Investment Corporation has reached its 21st FP leveraging its strength of "Stable DPU" and "Growth potential utilizing comprehensive strength of AEON group" although the environment surrounding not only rising interest rate, but also various operating costs is changing. Toward the Mid-term target announced in Sep. 2022, the Investment Corporation made one step ahead with the target of Stabilized DPU Carrer Joined Jusco Co., Ltd. (currently, AEON Co. Ltd.) in 1988. He was seconded to JAYA JUSCO STORES (currently, AEON Malaysia) in 1995. Since 2000, Mr. Seki engaged in the management of the Group's overseas companies and assignments related to Asian businesses and developer business strategies. He became deeply and Asset size by acquiring 2 new properties “AEON MALL Wakayama" involved in the establishment of AEON Reit and "AEON MALL Miyakonojo Ekimae" in 2023. In addition, with regards to the long-term issuer rating target issued by Japan Credit Rating Agency has been improved from AA- (positive) to AA (stable) in recognition of our past performance. The Investment Corporation also achieved its third-party certification acquisition rate target set as sustainability target. We will continue to promote initiatives and show steady progresses toward Mid-term target to meet your expectations and to be evaluated. Thank you for your continuous support. ÆON REIT Investment Corporation as an Auditor and a Director of the Company in 2012 and 2013, respectively. After gaining his career as an Executive Officer of AEON. Retail Co., Ltd. while concurrently serving as the General Manager of Developer Department and General Manager of President's Office, he was appointed Director of the Company in 2018. Representative Director of AEON Reit Management Co., Ltd. and Executive Director of AEON REIT Investment Corporation since 2019. Director Akifumi Togawa Director Yoshiki Kashimura Director Itaru Toyoshima Career 1996 Joined AEON Co., Ltd. (formerly JUSCO Co., Ltd.). 2012 Started overseeing the overall financial affairs from the time before listing as the Manager of the Finance Group, 2018 General Manager of the Finance and Planning Department of AEON Reit Management Co., Ltd. 2019 Director of AEON Reit Management Co., Ltd. 2021 May Director in charge of Investment Management and Asset Management Career 1989 Joined The Dai-Ichi Kangyo Bank, Ltd. (the current MizuhoBank, Ltd.) 2003 Joined risk management department 2018 Appointed as Deputy General manager. Risk Management Department, in Mizuho Financial Group. 2019 Joined AEON Reit Management Co., Ltd. as Compliance officer and Compliance manager 2021 May Director of AEON Reit Management Co., Ltd. Career 1997 Joined Nomura Securities 2014 Joined AEON Reit Management Co., Ld. 2015 Manager of IR and Planning Group, Finance and Planning Department 2018 General Manager of the Business Administration Department 2020 Seconded to the Strategy Department of AEON Co., Ltd. 2021 Secretary and Communications 2022 Secretary and External relations May 2023 Director in charge of Finance and Accounting at AEON Reit Management Co., Ltd. 43#44Notes (II) P.27 Points of the "Community Infrastructure Asset" (Note 1) Estimated with 36 properties listed in marketing report out of 40 domestically owned SRSC and RSC. (Note 2) Excerpted from the daytime 12hour motor vehicle traffic amount mentioned in "the 2021 National Road and Street Traffic Conditions Survey and Market Report". (Note 3) Estimated with 40 domestically owned properties including SRSC and RSC. (Note 4) "End tenant occupancy" is the ratio of the actual leased area (sublease area), which deducted vacant floor area from total leasable area, to the total leasable area (mater lease area) for the domestic retail facilities owned by the Invest Corporation (in total 44 facilities) calculated based on the preliminary figures provided by each mater lessee (as of the end of Jul. 2023). P.28 Stability of "Community Infrastructure Asset" and its rent (Note 1) Net sales of end tenants (20th FP) represents the comparison rate (with same months in the year before and in 2019) of the total amount of end-tenant sales from Aug. 2022 to Jan. 2023 at domestic commercial facilities owned by the Investment Corporation as of the end of Jan. 2023. (Note 2) Net sales of end tenants (21st FP) represents the comparison rate (with same months in the year before and in 2019) of the total amount of end-tenant sales from Feb. 2023 to Jul. 2023 at domestic commercial facilities owned by the Investment Corporation as of the end of Jan. 2023. Net sales of end tenants of Jun. 2023 and Jul. 2023 are calculated based on preliminary figures received through interviews with each master lessee. P.29 External growth ~Selective investments backed by Pipeline Support~ (Note 1) "Not acquired" refers to the properties which AEON REIT ended up not acquiring in the period, due to various reasons such as pricing, economic terms and conditions, timing of financing after consideration and discussion with the seller. (Note 2) Calculated based on the number of transactions related to assets acquired by the end of Jul. 2023. P.30 External growth ~Further growth backed by Pipeline Support~ (Note 1) Excerpts from the supplements to the financial results of AEON Co., Ltd. for the fiscal period ended Feb. 2023 (excluding AEON MALL Co., Ltd., AEON TOWN Co., Ltd., AEON GLOBAL SCM Co., Ltd., AEON Food Supply LTD and United Super Markets Holdings Inc.), corporate websites (AEON MALL Co., Ltd., AEON TOWN Co., Ltd., AEON Food Supply LTD and United Super Markets Holdings Inc.), and data provided by AEON GLOBAL SCM Co., Ltd. (for the fiscal period ended Jul. 2023). (Note 2) SC, GMS, SM, DS, HC and SuC stand for "Shopping Center", "General merchandise store", "Supermarket", "Discount store", "Home center", and "Supercenter", respectively. (Note 3) This does not imply that AEON REIT is currently considering the acquisition of these properties. (Note 4) Some of these stores are operating as tenants in the shopping centers managed by AEON MALL or AEON TOWN. (Note 5) "Total pipeline" refers to the total amount of properties owned by the AEON Group and third parties, for which the Investment Corporation has submitted letter of intention to purchase in the past, and whose expiration date has not yet passed. The amount of the properties are based on the Investment Corporation's desired purchase amount. P.31 Internal growth Enhancing values of properties~ (Note 1) "Revitalization investment" refers to construction work for improving the value of properties. (Note 2) Calculated based on the information of the assets held at the end of Jul. 2023 (21st FP). P.33 Financial strategy Financial management~ (Note) Includes refinancing (excluding bridge loans) and debt procurement related to acquisition of new properties. P.34 Financial strategy ~LTV & Cost trends~ (Note) "Loan capacity" is the approximate amount which can be borrowed if LTV (including security deposit) is raised to 50%. The said amount does not guarantee or promise that the Investment Corporation will actually be able to procure the said amount of funds. ÆON REIT Investment Corporation 44#45Notes (II) P.35 Risk management ~Resilient to natural disasters~ (Note 1) Shows the total estimated depreciation expenses for the fiscal period ending Jul. 31, 2023 (21st FP) and the fiscal period en ding Jan. 31, 2024 (22nd FP). (Note 2) Immunity of AEON Lake Town mori and AEON Lake Town kaze is set as ¥30 mm. (Note 3) PML values are based on the "48 Property Building Earthquake Risk Research Portfolio Analysis Report" prepared by Tokio Marine dR CO., Ltd. In Dec. 2022. P.36 High ability of generating cash-on-hand (Note) The top 4 J-REITS high ratio (annualized) of actual depreciation expenses divided by intangible fixed assets + tangible fixed as sets are listed. Investment corporation with total assets of 100 billion yen or more in the most recent fiscal year announced by the end of Jul. 2023 are filtered when making the graph, and also amount of expenses used for calculations are quoted from the latest FP of each corporations. P.37 Sustainability Initiatives ~AEON REIT~ (Note) GRESB refers to the annual benchmark certifications that measure ESG considerations of real estate companies and funds, as well as the organization operating the certifications. The GRESB Real Estate Certification is a 5 level rating based on the global ranking of the total score. The same shall apply hereinafter. P.38 Sustainability Initiatives ~Materiality~ (Note 1) Materiality refers to key issues that may cause huge impact to the activities of the corporation. (Note 2) Materiality Matrix refers to the prioritization matrix which shows "how important the corporation recognize the issue". P.39 Sustainability Initiatives ~Environment~ (Note) The ratio of properties with third party certifications is calculated by dividing the total rentable floor area of certified properties by that of all properties owned in Japan. Third party certification refers to the DBJ Green Building certification, CASBEE certification and BELS certification, etc. P.40 Sustainability Initiatives ~Social~ (Note) AEON 1% Club Foundation is a foundation in which major Aeon Group companies contribute 1% of their pre-tax profits for the healthy upbringing of young people who will lead the next generation, the promotion of friendship with other countries, and the promotion of sustainable development of local communities. P.39 Sustainability Initiatives ~Environment~ P.40 Sustainability Initiatives ~Social~ P.42 Sustainability Initiatives AEON Group~ (Note) Information listed on above pages collectively describes the ESG initiatives of the Investment Corporation, the Asset Management Company and AEON Group, and includes those not directly related to the Investment Corporation or the Asset Management Company. ÆON REIT Investment Corporation 45#4621st FP (Jul. 2023) Financial Results Presentation Material III. Appendix 1 Features of AEON REIT Investment Corporation ÆON REIT Investment Corporation#47Corporate philosophy and policy Corporate philosophy AEON REIT positions retail properties (Note 1) as the Community Infrastructure Assets of local communities and invests in those properties to support the rich life of people living there. AEON REIT aims to create a rich life for people and contribute to local communities through investment activities and implements stable asset management on a medium- to long-term basis. Corporate policy AEON REIT carries out a growth strategy based on the policy of maintaining a mutually beneficial relationship with the AEON Group (Note 2), thereby aiming to maximize value for unitholders. 3 Increase distribution and improve unitholder value Acquire retail properties /EON from the AEON Group イオンリート 1 Sell retail properties to the REIT /EON 2 Make growth investments by leveraging funds obtained from property sales 2 Expand the asset size, make asset management more stable and improve financing capabilities 3 Increase revenues and enhance corporate value ÆON REIT Investment Corporation 47#48Portfolio development policy Investment ratio by type of properties Large-scale retail property Type of properties 1 Super regional shopping center (SRSC) More than one anchor tenant with over 200 specialty stores 2 Regional shopping center (RSC) A large GMS with over 50 specialty stores 3 Community shopping center (csc) A GMS, discount store and large grocery store with 20 to 50 specialty stores Investment ratio (Note 1) 80% or more Other retail property (small and medium-scale) Logistics facility Neighborhood shopping center (NSC) : Agrocery store with 10 to 30 specialty stores Supermarket (SM) :: A grocery supermarket with a focus on the selling of high purchase frequency commodities, such as food and household good Logistics facilities that support a supply chain, an integral part of the retail business Investment ratio by region No more than 20% No more than 10% Specialty store area Domestic Ratio: 85% or more ÆON REIT Investment Corporation Ratio: Overseas No more than 15% (Countries and regions with strong economic growth prospects in the medium to long term (Note 2, 3) ) Anchor tenant sub anchor specialty stores AEON tenant parking 48#49Summary of portfolio (as of Jul. 31, 2023) Portfolio data 4.2% 6.6% 6.0% 1.3% 11.1% 6.7% Hokkaido Tohoku • Kanto 6.7% 35.6% 7.3% 6.0% Tokai Hokuriku Chubu 14.1% 83.2% By location Kinki 23.8% 35.6% Chugoku Shikoku . 7.3% 6.6% 23.8% Kyushu Okinawa Malaysia 11.1% 1.3% Super regional shopping center (SRSC) By property type Regional shopping center (RSC) Community shopping center (CSC) 4.2% Logistics facility (L) 83.2% Summary of portfolio Number of properties Total acquisition price Portfolio appraisal NOI yield Portfolio appraisal NOI yield after depreciation Average remaining lease term Average building age ÆON REIT Investment Corporation 14.1% 49 (Domestic 47, Overseas 2) ¥468.3bn 6.2% 3.9% 13.1 yrs 18.0 yrs 49 49#50Properties owned by AEON REIT Tokai, Chubu and Hokuriku 6 AEON MALL Ogaki (Ogaki City, Gifu) 7 AEON MALL Suzuka (Suzuka City, Mie) 8 AEON MALL Meiwa (Taki County, Mie) 20 8 properties AEON MALL Yokkaichi-Kita (Yokkaichi City, Mie) AEON MALL Kofu Showa (Nakakoma County, Yamanashi) AEON MALL Kahoku (Kahoku City, Ishikawa). AEON Ueda Shopping Center (Ueda City, Nagano) AEON MALL Shinkomatsu (Komatsu City, Ishikawa) 49 Properties (Note) (47 properties in Japan, 2 properties overseas) Super regional shopping center (SRSC) Community-based SC (CSC) Regional shopping center (RSC) Logistics facilities (L) (As of Jul. 31, 2023) Hokkaido and Tohoku properties 1 AEON MALL Morioka (Morioka City, Iwate) AEON MALL Ishinomaki (Ishinomaki City, Miyagi) 16 AEON MALL Sapporo-Hiraoka (Sapporo City, Hokkaido) 17 AEON MALL Kushiro-Showa (Kushiro City, Hokkaido) 18 AEON MALL Shinrifu North Wing (Miyagi County, Miyagi). 19 AEON MALL Yamagata-Minami (Yamagata City, Yamagata) 24 AEON MALL Tomakomai (Tomakomai City, Hokkaido) Kanto 15 properties 1 Aeon Lake Town mori (Koshigaya City, Saitama) Kyushu and Okinawa properties 13 AEON MALL Nogata (Nogata City, Fukuoka) 27 AEON MALL Kagoshima (Kagoshima City, Kagoshima) 32 AEON MALL Fukutsu (Fukutsu City, Fukuoka) 37 AEON MALL Sagayamato (Saga City, Saga) 39 AEON MALL Miyakonojo Ekimae (Miyakonojo City, Miyazaki) Malaysia M-2 M-1 ASEAN 2 properties M-1 AEON Taman Universiti Shopping centre (Johor, Malaysia) M-2 AEON MALL Seremban 2 (Negeri Sembilan, Malaysia) 27 Kinki, Chugoku and Shikoku 9 AEON MALL Kasai-Hojo (Kasai City, Hyogo) 10 AEON MALL Hiezu (Saihaku County, Tottori) 11 AEON MALL Kurashiki (Kurashiki City, Okayama) AEON MALL Ayagawa (Ayauta County, Kagawa) 15 AEON MALL KYOTO (Kyoto City, Kyoto) 21 AEON MALL Yamatokoriyama (Yamatokoriyama City, Nara) 26 AEON MALL Itamikoya (Itami City, Hyogo) 31 AEON MALL Kyoto Gojo (Kyoto City, Kyoto) AEON Kireuriwari Shopping Center (Osaka City, Osaka) 35 12 properties AEON Minami-Osaka RDC (Sakai City, Osaka) Daiei Ibaraki Process Center (Ibaraki City, Osaka) 38 AEON MALL Wakayama (Wakayama City, Wakayama) EON MALL 2 Aeon Lake Town kaze (Koshigaya City, Saitama) 3 AEON MALL Mitouchihara (Mito City, Ibaraki) 4 AEON MALL Ota (Ota City, Gunma) 5 AEONSagamihara Shopping Center (Sagamihara City, Kanagawa) AEON MALL Chiba-Newtown (The shopping mall building and The cinema and sports building) (Inzai City, Chiba) 25 AEON MALL Oyama (Oyama City, Tochigi) 28 AEON MALL Tsuchiura (Tsuchiura City, Ibaraki) 30 AEON MALL Shimotsuma (Shimotsuma City, Ibaraki). AEON MALL Tamadaira woods (Hino City, Tokyo) AEON Chigasaki-Chuo Shopping Center (Chigasaki City, Kanagawa) AEON STYLE Kemigawahama (Chiba City, Chiba). Daiei-Kawasaki Process Center (Kawasaki City, Kanagawa) 34 AEON MALL Takasaki (Takasaki City, Gunma) 35 AEON MALL Narita (Narita City, Chiba) AEON REIT Investment Corporation 50 50#51Expansion of asset size since listing EN MALL the 6th follow-on offering SON EON MALL AON MALL /EON AEON MALL Takasaki (\17.1bn) AEON MALL Narita AEON MALL Shinkomatsu (¥14.0bn) (\15.3bn) AEON MALL Sagayamato (\3.7bn) Acquired properties Newly acquired properties the 7th follow-on offering BON MALL AEON MALL Wakayama AEON MALL Miyakonojo Ekimae (\16.8bn) (¥4.4bn) 49 properties ¥468.3bn 47 properties 47 properties 47 properties 43 properties 43 properties" ¥447.0bn ¥447.0bn ¥447.0bn 42 properties ¥395.5bn 41 properties 390.1bn ¥380.5bn 40 properties 40 properties 40 properties 40 properties 36 properties ¥355.1bn ¥330.6bn ¥355.3bn ¥362.4bn ¥362.4bn 28 properties ¥249.2bn 23 properties 23 properties ¥194.3bn \194.3bn 17 properties 17 properties 16 properties ¥158.9bn ¥158.9bn ¥158.3bn 31 properties ¥268.5bn Jan. 2014 Jul. 2014 (2nd FP) (3rd FP) Jan. 2015 (4th FP) Jul. 2015 (5th FP) Jan. 2016 (6th FP) Jul. 2016 Jan. 2017 Jul. 2017 Jan. 2018 (7th FP) (8th FP) (9th FP) (10th FP) Jul. 2018 (11th FP) Jan. 2019 (12th FP) Jul. 2019 (13th FP) Jan. 2020 (14th FP) ÆON REIT Investment Corporation Jul. 2020 (15th FP) ¥396.7bn Jan. 2021 (16th FP) Jul. 2021 (17th FP) Jan. 2022 (18th FP) Jul. 2022 (19th FP) Jan. 2023 (20th FP) Jul. 2023 (21st FP) 51#52Growth of DPU and NAV per unit Changes in DPU 4,000 Temporary Impact of Kumamoto Earthquake (Unit: yen) 3,500 3,315 3,350 3,350 3,274 3,283 3,335 3,178 3,184 3,200 3,019 3,029 3,066 3,047 3,074 2,926 2,956 3,000 2,790 2,724 2,461 2,473 2,500 2,000 686 1,450 0 Jan. 2014. Jul. 2014 Jan. 2015 (2nd FP) (3rd FP) (4th FP) Jul. 2015 (5th FP) Jan. 2016. (6th FP) Jul. 2016 (7th FP) Jan. 2017 (8th FP) Jul. 2017 (9th FP) Jan. 2018 (10th FP) Jul. 2018 (11th FP) Jan. 2019 (12th FP) Jul. 2019 (13th FP) Jan. 2020 (14th FP) Jul. 2020 (15th FP) Jan. 2021 (16th FP) Jul. 2021 (17th FP) Jan. 2022 Jul. 2022 (18th FP) (19th FP) Jan. 2023 (20th FP) Jul. 2023 Jan. 2024 (21st FP) Jul. 2024 (22nd FP) (23rd FP) Forecast Forecast 160,000 Changes in NAV per unit (Unit: yen) 148,721 149,772 151,071 148,470 150,000 146,432 140,000 Temporary Impact of Kumamoto Earthquake 144,604 142,360 140,517 136,778 133,465 130,957 130,000 126,169 127,912 127,358 128,301 123,547 122,057 120,000 115,939 112,635 110,456 110,000 Jan. 2014 Jul. 2014 (2nd FP) (3rd FP) Jan. 2015 (4th FP) Jul. 2015 (5th FP) Jan. 2016 (6th FP) Jul. 2016 (7th FP) Jan. 2017 (8th FP) Jul. 2017 (9th FP) Jan. 2018 (10th FP) Jul. 2018 Jan. 2019 Jul. 2019 Jan. 2020 Jul. 2020 (11th FP) (12th FP) (13th FP) (14th FP). (15th FP) Jan. 2021 (16th FP) Jul. 2021 (17th FP) Jan. 2022 (18th FP) Jul. 2022 (19th FP) Jan. 2023 (20th FP) Jul. 2023 (21st FP) ÆON REIT Investment Corporation 52#53Transition of Property Tax Benefit from asset acquisition Property Tax Benefit from newly acquired assets IN MALL AEON MALL Wakayama DPU excluding Property Tax (Note) AEON MALL Miyakonojo Ekimae (Acquisition price ¥ 16.8 bn) (Acquisition price ¥4.4 bn) Property Tax Benefit 48 222 12 29 29 34 85 39 2 63 65 (Unit: yen) 3,149 3,145 3,198 3,230 3,274 3,283 3,287 3,285 3,335 2,944 3,018 3,047 3,040 2,807 Jan. 2018 (10th FP) Jul. 2018 (11th FP) Jan. 2019 (12th FP) Jul. 2019 (13th FP) Jan. 2020 (14th FP) Jul. 2020 (15th FP) Jan. 2021 (16th FP) Jul. 2021 (17th FP) Jan. 2022 (18th FP) Jul. 2022 (19th FP) Jan. 2023 (20th FP) Jul. 2023 (21st FP) Jan. 2024 (22nd FP) Jul. 2024 (23rd FP) "Property Tax Benefit" forecast forecast Fixed asset and city planning taxes that are imposed on owners of real estate as of January 1st each year. Paid by both the seller and buyer of real estate according to the period of hold during the year in which the selling and buying transaction is conducted. Distribution increases in the year of transaction because the tax paid by the buyer is capitalized and not booked as expenses for the year. The expenses are posted from the payment period in the following year. ÆON REIT Investment Corporation 53#54Overview of overseas properties Acquired properties from AEON Malaysia, which has been operating locally for about 40. years. Rents are CPI-linked and reflecting Malaysia's growth potential. About the properties India Johor Bahru GDP growth rate of Japan and Malaysia (Note 2) AEON MALL SEREMBAN 2 Malaysia Japan Completion year China Japan 2005 8.0% Location Negeri Sembilan Province 6.0% 4.8% 4.0% 2.0% AEON Taman Universiti Shopping Centre 1.5% 4.1% 0.0% 1.4% 2.0% 1.6% 7.5% 6.0% 5.5% 5.8% 5.3% 5.0% 4.7% 4.4% 4.5% 4.8% 3.1% 2.1% 1.1% 08.7% 1.7% Kuala Lumpur Completion year 0.0% CON 0.3% 0.8% 0.6% -2.0% Singapore 2002 -0.4% -4.3% -1.2% Location -4.0% Johor -6.0% -5.5% -5.7% -8.0% Details of the master lease agreement Fixed rent agreement (10-year lease term) CPI-linked rent revision (every 3 years) 7.4% increase in rent (2017) Taman U. SC 4.6% increase in rent (2020) 5.6% increase in rent (2023) SEREMBAN 2 -> 5.4% increase in rent (2019) 5.3% increase in rent (2022) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Changes in CPI in Malaysia and Japan (Note 3) (%) 170 Х Net lease 160 150 140 130 120 110 100 90 About AEON Malaysia (AEON Co. (M) BHD) Founded in 1984 and has been operating in Malaysia for about 40 years. ▸ Have been listed on the Kuala Lumpur Stock Exchange since 1996. Operates 28 malls, generating operating income 4,141 million RM. (¥114.2 bn at 27.59 yen to 1 RM) (Note 1) ÆON REIT Investment Corporation 2000 2001 2002 2003 2004 2005 2006 2007 2008 CPI (Malaysia) CPI (Japan) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 54#55Schemes for acquisition of overseas properties "Declaration-of-trust scheme" was utilized in the J-REIT's first overseas investment case in Jun. 2014. “Overseas SPC scheme" was also utilized as second case for AEON REIT in Sep.2016. Declaration-of-trust scheme (acquired in June 2014) Overseas SPC scheme (acquired in September 2016) AEON REIT Investment Corporation (beneficiary) AEON REIT Investment Corporation Japan Holding the property Holding a Japan 100% stake Malaysia Master lease agreement AEON CO. (M) BHD. (beneficiary and masterlessee) Store operation 18.18% of total (¥658 million) Rights to hold in common Trust beneficiary interests of trust formed by declaration of trust KON ÆON REIT Investment Corporation Malaysia Master lease agreement JAMBATAN MANSEIBASHI (M) Sdn Bhd AEON CO. (M) BHD. (master lessee) Store operation Holding the property M-1 AEON Taman Universiti Shopping Centre M-2 AEON MALL SEREMBAN 2 Real estate (exclusive of taxes) 215 million RM* (¥5,252 million) Capital stock, etc. 239 million RM* (\ 6,052 million) Others. *1 RM 24.43JPY (as of September 2016) 55#56Overview of logistics facilities Invested in logistics facilities, supporting commercial distribution. Currently own 3. properties. Seek to incorporate growth potential and profitability in AEON Group's overall supply chain. Community Infrastructure Assets Customers + AEON Stores AEON AEON Type of facility AEON merchandise Function Process Center (PC) Fresh food Regional Distribution Center (RDC) High rotation products ÆON REIT Investment Corporation 3 Logistics facilities Kanto region Kansai region Fresh food processing center Producing and processing fresh food on behalf of each store and supplying raw materials for cooking at each store. Inventory storage base Mainly used as an ordinary temperature facility, responsible for temporary storage and supply of goods frequently replenished at each store. Daiei-Kawasaki Process Center Daiei Ibaraki Process Center AEON Minami-Osaka RDC 56#57About AEON Group (1/3) - Pipeline support ~ ~ Supported by 14 companies from AEON Group and fully utilizing the Group synergy. Provision of information on properties owned by AEON REIT. Major supports to be provided Grant of preferential negotiation rights on the retail properties operated by AEON Group. Provision of information on potential sales of properties owned by third parties. AEON AEON REIT Investment Corporation/AEON Reit Management Co., Ltd イオンリート Trademark license agreement Shopping center management agreements Logistics facilities management agreements Memorandum of understanding on investments in properties in Malaysia Sponsor support agreement Pipeline support agreements AEON Co., Ltd. Sponsor ÆON REIT Investment Corporation NEW AEON MALL Co., Ltd. AEON Retail Co., Ltd. AEON Hokkaido Corporation AEON KYUSHU Co., Ltd. AEON RYUKYU CO., LTD. AEON TOWN Co., Ltd. The Daiei, Inc AEON TOHOKU Co., Ltd. United Super Markets Holdings Inc. Pipeline support companies Shopping center management providers AEON GLOBAL SCM CO., LTD AEON Food Supply LTD Pipeline support companies Logistics facilities management providers AEON CO. (M) BHD. AEON Big Malaysia (AEON BIG (M) SDN.BHD.) Supporting companies for overseas investments 57#58About AEON Group (2/3) - Overview of the group - ~ Numerical data India Myanmar Thailand China (Note1) Businesses fields CONST 暮らしのマネ Vietnam Laos Cambodia Malaysia Singapore Indonesia Korea Japan Australia Total 17,817 GMS ● DS CVS Other NSC stores/locations Services Tasmanian farm SM HC Specialty stores OMALL-type SC Drug stores 620 stores 605 stores 2,039 stores 1,431 stores 154 locations 2,049 locations 1 locations 2,309 stores. 119 stores 4,447 stores 271 locations financials services 596 locations GMS (general supermarket) Developer Comprehensive financial business No. of consolidated subsidiaries: elcia Health & Wellness 301 companies MaxValu (Note 2) SM (supermarket) Service and specialty store Market positioning (Note 3) International business. 3,176 stores. Ranking Company name 1 Walmart Stores Head office United States (Unit: USD million) Amount of sales 572,754 2 Amazon.com United States 469,822 Consolidated operating revenue Group employees 9.1 tn yen 570,000 Number of consolidated card members AEON Finance Service 3 CVS health United States 292,111 48.2 million 4 Costco United States 195,929 5 Schwarz Group Germany 156,209 17 AEON Japan 78,155 LVMH Moët Hennessy- 18 France 75,920 Louis Vuitton S.A. 58 ÆON REIT Investment Corporation#59About AEON Group (3/3) 2 Major large-scale retail properties (including facilities under development) ~ Major Shopping Centers developed by AEON Group ●Major Shopping Centers currently under development Chugoku and Shikoku AEON MALL Tottorikita AEON Matsue Shopping Center AEON MALL Izumo AEON MALL Okayama AEON MALL Hiroshima Fuchu AEON MALL Hiroshima Gion THE OUTLETS HIROSHIMA AEON TOWN Houfu ● AEON MALLTokushima AEON MALL Takamatsu AEON MALL Niihama AEON MALL Imabarishintoshi AEON MALL Kochi Tottori City, Tottori Matsue City, Shimane Izumo City, Shimane Okayama City, Okayama Aki County, Hiroshima Hiroshima City, Hiroshima Hiroshima City, Hiroshima Hofu City, Yamaguchi Tokushima City, Tokushim Takamatsu City, Kagawa Niihama City, Ehime Imabari City, Ehime Kochi City, Kochi Kyushu and Okinawa THE OUTLETS KITAKYUSHU AEON MALL Fukuokaito AEON MALL Yahatahigashi AEON Daito Shopping Center AEON Yatsushiro Shopping Center AEON MALL Sankoh AEON MALL Miyazaki AEON MALL Okinawa Rycom Kitakyushu City, Fukuoka Fukuoka City, Fukuoka Kitakyushu City, Fukuoka Sasebo City, Nagasaki Yatsushiro City, Kumamoto Nakatsu City, Oita Miyazaki City, Miyazaki Nakagami County, Okinawa Kinki AEON MALL Kusatsu AEON MALL Kyoto Katsuragawa AEON MALL Rinkusennan AEON MALL Dainichi AEON MALL Osaka Dome City AEON MALL Shijonawate AEON MALL Sakaiteppoucho AEON MALL Fujiidera SC AEON MALL Kobeminami AEON MALL Kashihara Kusatsu City, Shiga Kyoto City/Mukou City, Kyoto Sennan City, Osaka Moriguchi City, Osaka Osaka City, Osaka Shijonawate City/Neyagawa City, Osaka Sakai City, Osaka Fujiidera City, Osaka Kobe City, Hyogo Kashihara City, Nara THE OUTLETS SHONAN HIRATSUKA Tokai and Hokuriku AEON MALL Takaoka AEON MALL Tonami AEON MALL Shin-Komatsu AEON MALL Hakusan AEON MALL Kakamigahara AEON MALL Toki Hokkaido and Tohoku AEON MALL Around Asahikawa Station. Asahikawa City, Hokkaido AEON MALL Shimoda AEON MALL Moriokaminami AEON MALL Naton AEON MALL Shinrifu South Wing AEON MALL Akita AEON MALL Tendo AEON MALL Iwakiona hama (tentative name) AEON MALL Kita Fukushima Kanto and Koushinetsu AEON MALL Tsukuba AEON MALL Sanoshintoshi AEON MALL Urawamisono AEON MALL Hanyu AEON MALL Kasukabe AEON MALL Yono AEON MALL Ageo AEON MALL Kawaguchi AEON MALL Makuhari New City AEON MALL Kisarazu (tentative name) Hachioji North Interchange AEON MALL Hinode JIYUGAOKA de aone AEON Hadano Shopping Center AEON MALL Zama THE OUTLETS SHONAN HIRAT SUKA (tentative name) AEON MALL Yokohama Nishiguchi AEON MALL Niigataminami AEON MALL Sakudaira AEON MALL Matsumoto (tentative name) AEON MALL Suzaka Takaoka City, Toyama Tonami City, Toyama Komatsu City, Ishikawa Hakusan City, Ishikawa Kakamigahara City, Gifu Toki City, Gifu AEON MALL Hamamatsuichino Hamamatsu City, AEON MALL Toyokawa AEON MALL Toyokawa Shizuoka Toyokawa City, Aichi O AEON MALL Odaka Kamikita County, Aomori Morioka City, Iwate Natori City, Miyagi Rifu-cho,Miyagi Akita City, Akita Tendo City, Yamagata Iwaki City, Fukushima Date City, Fukushima Tsukuba City, Ibaraki Sano City, Tochigi Saitama City, Saitama Hanyu City, Saitama Kasukabe City, Saitama Saitama City, Saitama Ageo City, Saitama Kawaguchi City,Saitama Chiba City, Chiba Kisarazu City, Chiba Hachioji City, Tokyo Nishitama County, Tokyo Meguro Ward, Tokyo Hadano City, Kanagawa Zama City, Kanagawa Hiratsuka City, Kanagawa Yokohama City, Kanagawa Niigata City, Niigata Saku City, Nagano Matsumoto City, Nagano Suzaka City, Nagano AEON MALL Nagoya Chaya AEON MALL Nagoya Noritake Garden AEON MALL Fuso O AEON MALL Tokoname AEON MALL Nagakute AEON MALL Toin AEON MALL Tsu minami Nagoya City, Aichi Nagoya City, Aichi Nagoya City, Aichi Niwa County, Aichi Tokoname City, Aichi Nagakute City, Aichi Inabe County, Mie Tsu City, Mie ÆON REIT Investment Corporation 59#60Notes (III) P.47 Corporate philosophy and policy (Note 1) Refers to retail properties, logistics facilities and related facilities. Retail properties refer to facilities containing retail businesses and other merchandising businesses, entertainment and amusement facilities and other facilities that attract customers (including parking lots and equipment and systems for logistics). Logistics facilities refer to warehouses and other storage facilities for the distribution and transport of merchandise and other goods. (Note 2) Refers to the group comprised of the holding company AEON CO., LTD. And its 301 consolidated subsidiaries and 27 equity-method associates (as of Feb. 28, 2023). P.48 Portfolio policy (Note 1) Calculated based on acquisition prices. (Note 2) Indicates such as Malaysia in the ASEAN region and China. (Note 3) ASEAN indicates Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Laos, Myanmar and Cambodia. P.50 Properties owned by AEON REIT (As of Jul. 31, 2023) (Note) The number of properties is calculated including AEON MALL SEREMBAN 2, which AEON REIT owns through the Overseas SPC.. P.53 Transition of Property Tax Benefit from asset acquisition (Note) The "DPU excluding Property Tax Benefit" is a figure excluding the amount of "Property Tax Benefit" from actual DPU and partly include dividend reserve. The "DPU excluding Property Tax Benefit " for the period ending July 31, 2023 (21st FP) and January 31, 2024 (22nd FP) are the amount deducting the figure calculated by dividing Property Tax Benefit by the number of investment units outstanding from actual DPU. "DPU excluding Property Tax Benefit" is forecast figure anticipated by AEON REIT Investment Corporation as of the publication date of this document, which is not an indicator specified by generally accepted corporate accounting standards, nor has it been audited by an accounting auditor. The estimated amount should not be considered as a substitute for other indicators presented in accordance with generally accepted accounting principles. AEON REIT Investment Corporation does not guarantee or promise its achievement. P.54 Overview of overseas properties (Note 1) Created by the Asset Management Company based on the information listed in "Annual Report 2022" issued by AEON Malaysia. (Note 2) Created by the Asset Management Company based on the information listed in "World Economic Outlook Databases" issued by IMF. (Note 3) Created by the Asset Management Company based on the information listed in "World Economic Outlook Databases" issued by IMF. (The data in 2000 is set as 100.) P.58 About AEON Group (2/3) ~Overview of the AEON Group~ (Note 1) Created by the Asset Management Company based on information on "AEON 2023-2024" uploaded on websites of AEON Co., Ltd (Note 2) Mentioned based on the securities report dated May 29, 2023 of AEON Co., Ltd. (Note 3) Created by the Asset Management Company based on the sales data of each company in 2021. P.59 About AEON Group (3/3) ~ Major large-scale retail properties (including facilities under development) ~ (Note 1) Prepared by the Asset Management Company based on the information provided by AEON CO., LTD. and AEON MALL Co., Ltd. (as of Jul. 2023). (Note 2) AEON REIT neither owns nor plans to acquire any of these properties as of now. ÆON REIT Investment Corporation 60 50#6121st FP (Jul. 2023) Financial Results Presentation Material IV. Appendix 2 Numeric data ÆON REIT Investment Corporation#62Balance Sheet of 21st FP (as of Jul. 31, 2023) Assets 20th FP 21st FP (as of Jan. 31, 2023) (as of Jul. 31, 2023) Amount (thousands of yen) Percentage Amount (thousands of yen) Percentage Liabilities 20th FP (as of Jan. 31, 2023) 21st FP (as of Jul. 31, 2023) Percentage Amount (thousands of yen) Percentage Amount (thousands of yen) I Current assets 33,763,079 Cash and deposits 23,912,320 7.8% 5.5% 34,298,007 23,939,480 7.6% 5.3% | Current liabilities Operating accounts payable 23,276,535 1,436,040 5.4% 0.3% 31,514,025 1,009,143 7.0% 0.2% Cash and deposits in trust 8,947,261 2.1% 9,121,487 2.0% Short-term debt 9,300,000 2.1% Prepaid expenses 807,615 0.2% 501,357 0.1% Current portion of long-term loan payable Income taxes receivable 20 0.0% 23 0.0% Account payable - other Consumption taxes receivable 728,225 0.2% Accrued expense 20,400,000 474,250 109,239 4.7% 0.1% 20,400,000 4.5% 499,196 0.1% 0.0% 108,934 0.0% Other 95,861 0.0% 7,433 0.0% Income taxes payable 605 0.0% 605 0.0% II Non-current assets Property and equipment Land 108,463 Buildings in trust, net 176,947,701 Structures in trust, net Tools, furniture and fixtures in trust, net 802,009 22,721 399,348,886 92.1% 318,982,318 73.6% 0.0% 40.8% 0.2% 417,903,475 92.4% 336,688,959 74.4% Accrued consumption taxes Provision for loss on disaster 608,287 0.1% 48,032 0.0% Other 108,463 186,831,453 0.0% 733,117 18,996 0.0% 41.3% 0.2% II Non-current liabilities Investment corporation bond Long-term loans payable 107,700,000 0.0% Tenants leasehold and security deposits 2,628 200,080 173,480,903 40.0% 51,000,000 11.8% 24.9% 0.0% 0.0% 196,145 0.0% 173,578,760 38.4% 51,000,000 11.3% 107,700,000 23.8% 2,628 0.0% Land in trust 141,100,504 Construction in progress in trust 917 Intangible assets Leasehold rights in trust Investments and other assets 32.6% 0.0% 73,490,733 17.0% 73,490,733 17.0% 6,875,833 148,996,928 32.9% Tenants leasehold and security deposits in trust Asset retirement obligation 14,320,296 3.3% 14,320,296 3.2% 457,977 1.6% 74,469,416 74,469,416 6,745,099 16.5% 16.5% Net assets Total liabilities 196,757,438 0.1% 45.4% 555,835 0.1% 205,092,785 45.3% Shares of subsidiaries and associates 6,078,453 1.4% 6,078,453 1.5% 1.3% | Unitholders' equity Unitholders' capital, net Long-term prepaid expenses 787,379 0.2% 656,645 0.1% Unitholders' capital Leases and guarantee deposits 10,000 0.0% 10,000 0.0% Other deduction from unitholders' capital Surplus 283,945 III Investment unit issuance expenses Investment corporation bond issuance costs Total assets 28,719 255,225 0.1% 0.0% 0.1% 284,172 48,408 235,763 0.1% 0.0% Distribution reserve Unappropriated retained earnings 0.1% Total net assets 433,395,910 100.0% 452,485,655 100.0% Total liabilities and net assets 236,638,471 54.6% 247,392,870 54.7% 229,484,384 53.0% 239,903,198 53.0% 233,010,081 53.8% 243,428,896 53.8% 3,525,697 ▲0.8% 3,525,697 ▲0.8% 7,154,087 1.7% 7,489,671 1.7% 429,190 0.1% 440,101 6,724,896 1.6% 7,049,570 1.6% 236,638,471 54.6% 247,392,870 54.7% 433,395,910 100.0% 452,485,655 100.0% 0.1% 62 AEON REIT Investment Corporation#63Statements of income of 21st FP (as of Jul. 31, 2023) (Statements of Income) 20th FP (From Aug. 1, 2022 to Jan. 31, 2023) 21st FP (From Feb. 1, 2023 to Jul. 31, 2023) Percentage 100.0% 99.2% (Breakdown of revenues and expenses related to real estate leasing business) 20th FP (From Aug. 1, 2022 to Jan. 31, 2023) Amount (thousands of yen) 21st FP (From Feb. 1, 2023 to Jul. 31, 2023) Amount (thousands of yen) Amount (thousands of yen) Percentage Amount (thousands of yen) Percentage Percentage Operating revenue Rent revenue - real estate Dividends received 19,987,482 100.0% 21,008,316 19,826,986 99.2% 20,844,445 Rent reveue - real estate Rent revenue 19,826,986 100.0% 20,844,445 100.0% 19,771,845 99.7% 20,768,288 99.6% 160,496 0.8% Operating expenses 12,367,105 61.9% 163,870 13,037,455 0.8% Other rent revenue real estate 55,140 0.3% 76,156 0.4% 62.1% Expenses related to real estate leasing business 11,217,082 56.6% 11,870,427 56.9% Expenses related to rent business 11,217,082 56.1% 11,870,427 56.5% Property and facility management fees 49,401 0.2% 51,139 0.2% (Depreciation) (5,167,847) (25.9%) (5,502,443) (26.2%) Repairs and maintenance expenses 808,009 4.1% 931,978 4.5% Asset management fee 928,873 4.6% 938,765 4.5% Asset custody fee 22,176 0.1% 23,053 0.1% Insurance expenses 260,085 1.3% 309,562 1.5% Trust fees 24,768 0.1% 25,271 0.1% Administrative service fees 62,358 0.3% 64,543 0.3% Land rent paid 2,596,579 13.1% 2,740,708 13.1% Director's compensation 5,400 0.0% 5,400 0.0% Taxes and dues 2,259,425 11.4% 2,262,558 10.9% Taxes and dues 8,754 0.0% 6,270 0.0% Other operating expenses 122,460 0.6% 128,994 0.6% Depreciation 5,167,847 26.1% 5,502,443 26.4% Water charges 43,679 0.2% 37,876 0.2% | Operating income 7,620,377 38.1% 7,970,860 37.9% Other expenses related to rent business 7,285 0.0% 8,888 0.0% Non-operating income 1,168 0.0% 1,151 0.0% ΝΟΙ 13,777,751 14,476,461 Interest income 132 0.0% 152 0.0% Refund of unpaid distributions 1,035 0.0% 878 0.0% Rent reveue real estate (+) 19,826,986 20,844,445 Other 120 0.0% Expenses related to real 11,217,082 11,870,427 Non-operating expenses Depreciation (+) 5,167,847 5,502,443 907,693 4.5% 923,837 4.4% Interest expenses 500,535 2.5% 515,866 2.5% Interest expenses on investment corporation bonds 217,999 1.1% 215,139 1.0% Amortization of investment unit issuance expenses 10,625 0.1% 15,425 0.1% Amortization of investment corporation bond issuance expenses 19,461 0.1% 19,461 0.1% Borrowing related expenses 158,491 0.8% 157,944 0.8% 580 0.0% Il Ordinary income III Extraordinary income Insurance income III Extraordinary loss Loss on disaster 6,713,852 33.6% 7,048,174 33.5% 76,335 0.4% 76,335 0.4% 65,424 0.3% 23,879 0.1% Provision for loss on disaster 41,545 0.2% IV Income (loss) before taxes 6,724,762 Income taxes - current 605 V Net income (loss) 6,724,157 Retaind earnings brought forward 738 VI Unapropriated retained earinngs (undisposed loss) 6,724,896 33.6% 0.0% 33.6% 0.0% 33.6% 7,048,174 605 33.5% 0.0% 7,047,569 2,000 7,049,570 33.5% 0.0% 33.6% ÆON REIT Investment Corporation 63#64Portfolio list (1/2) Property number Property name Location Acquisition date Age of building Total leasable area (square meters) Acquisition price (mm yen) PML(%) (Note 1) SRSC-1 Aeon Lake Town mori (40% stake) (Note 2) Koshigaya City, Saitama November 2013 14.9 years 205,711.70 21,190 2.0 SRSC-2 AEON Lake Town kaze (40% stake) (Note 2) RSC-1 AEON MALL Morioka Koshigaya City, Saitama Morioka City, Iwate November 2013 14.9 years 127,183.81 6,730 1.7 November 2013 20.0 years 98,968.59 5,340 11.1 RSC-2 AEON MALL Ishinomaki Ishinomaki City, Miyagi November 2013 16.4 years 60,682.20 6,680 3.9 RSC-3 AEON MALL Mitouchihara Mito City, Ibaraki November 2013 17.7 years 159,997.49 16,565 0.7 RSC-4 AEON MALL Ota Ota City, Gunma November 2013 19.7 years 93,165.27 6,860 4.8 RSC-5 AEON Sagamihara Shopping Center RSC-6 AEON MALL Ogaki Sagamihara City, Kanagawa Ogaki City, Gifu November 2013 30.0 years 75,056.62 10,220 13.4 November 2013 16.4 years 64,246.26 4,950 9.2 RSC-7 AEON MALL Suzuka Suzuka City, Mie November 2013 26.7 years 125,253.74 9,660 7.5 RSC-8 AEON MALL Meiwa RSC-9 AEON MALL Kasai-Hojo RSC-10 AEON MALL Hiezu RSC-11 AEON MALL Kurashiki Taki County, Mie Kasai City, Hyogo Saihaku County, Tottori Kurashiki City, Okayama November 2013 22.0 years 44,193.80 3,290 4.6 November 2013 14.8 years 48,229.25 7,230 10.7 November 2013 24.4 years 102,045.24 7,780 8.0 November 2013 23.9 years 157,274.78 17,890 0.5 RSC-12 AEON MALL Ayagawa Ayaka County, Kagawa November 2013 15.0 years 113,149.07 8,740 0.6 RSC-13 AEON MALL Nogata RSC-15 AEON MALL KYOTO RSC-16 AEON MALL Sapporo-Hiraoka Nogata City, Fukuoka Kyoto City, Kyoto Sapporo City, Hokkaido November 2013 18.3 years 151,969.51 12,546 0.1. February 2015 13.6 years 136,468.45 21,470 13.5 February 2015 22.7 years 78,360.81 5,900 3.5 RSC-17 AEON MALL Kushiro-Showa Kushiro City, Hokkaido February 2015 22.9 years 51,763.05 1,780 7.0 RSC-18 AEON MALL Shinrifu North Wing Miyagi County, Miyagi February 2015 23.3 years 66,478.91 2,560 6.9 RSC-19 AEON MALL Yamagata-Minami RSC-20 AEON MALL Yokkaichi-Kita Yamagata City, Yamagata Yokkaichi City, Mie Yamatokoriyama City, February 2015 22.7 years 53,502.94 1,350 6.2 February 2015 22.5 years 41,447.33 2,210 6.0 RSC-21 AEON MALL Yamatokoriyama February 2016 13.5 years 105,230.88 14,452 12.0 Nara AEON MALL Chiba-Newtown RSC-22 Inzai City, Chiba March 2016 17.3 years 107,425.97 12,198 2.7 (Mall Building, Cinema and Sports Building) (Note 3) RSC-23 AEON MALL Kofu Showa (Note 4). RSC-24 AEON MALL Tomakomai Nakakoma County, Yamanashi Tomakomai City, Hokkaido February 2016 12.4 years/5.7 years 99,772.38 15,489 2.5/3.1 September 2016 18.3 years 71,308.33 7,840 2.9 ÆON REIT Investment Corporation 64#65Portfolio list (2/2) Property number Total leasable area Property name Location Acquisition date Age of building (square meters) Acquisition price (mm yen) PML(%) RSC-25 AEON MALL Oyama Oyama City, Tochigi RSC-26 AEON MALL Itamikoya Itami City, Hyogo August 2016 February 2017 26.3 years 47,872.33 6,280 4.5 12.5 years 122,944.71 16,860 1.8 Kagoshima City, RSC-27 AEON MALL Kagoshima February 2017 15.9 years 132,341.35 13,400 6.1 Kagoshima RSC-28 AEON MALL Tsuchiura Tsuchiura City, Ibaraki February 2017 14.2 years 86,848.51 12,030 1.0 RSC-29 AEON MALL Kahoku Kahoku City, Ishikawa February 2017 14.8 years 70,948.14 9,940 11.4 RSC-30 AEON MALL Shimotsuma RSC-31 AEON MALL Kyoto Gojo RSC-32 AEON MALL Fukutsu Shimotsuma City, Ibaraki Kyoto City, Kyoto Fukutsu City, Fukuoka September 2017 25.7 years 58,402.66 9,552 2.7 July 2018 19.5 years 87,311.56 13,333 11.6 September 2019 11.3 years 100,020.87 18,040 1.5 RSC-33 AEON MALL Tamadaira woods Hino City, Tokyo February 2020 8.7 years 66,575.54 9,667 7.0 RSC-34 AEON MALL Takasaki Takasaki City, Gunma August 2021 16.8 years 126,403.58 17,164 4.0 RSC-35 AEON MALL Narita Narita City, Chiba August 2021 23.4 years 122,785.62 14,001 5.0 RSC-36 AEON MALL Shinkomatsu Komatsu City, Ishikawa August 2021 6.4 years 79,509.27 15,350 6.7 RSC-37 AEON MALL Sagayamato Saga City, Saga August 2021 22.9 years Wakayama City, RSC-38 AEON MALL Wakayama February 2023 9.5 years 68,942.36 123,318.13 3,720 8.6 16,840 11.5 Wakayama Miyakonojo City, RSC-39 AEON MALL Miyakonojo Ekimae February 2023 14.7 years 62,324.49 4,460 5.2 Miyazaki CSC-1 AEON Chigasaki-Chuo Shopping Center Chigasaki City, Kanagawa May 2016 22.8 years 63,158.24 6,410 14.8 CSC-2 AEON STYLE Kemigawahama Chiba City, Chiba November 2017 31.7 years 29,947.62 3,748 2.6 CSC-3 AEON Kireuriwari Shopping Center Osaka City, Osaka September 2017 17.7 years 27,603.46 4,394 9.3 CSC-4 AEON Ueda Shopping Center L-1 Daiei-Kawasaki Process Center Ueda City, Nagano Kawasaki City, Kanagawa October 2020 19.1 years 61,349.07 5,350 9.0 February 2016 26.3 years 59,265.77 14,280 3.7 L-2 AEON Minami-Osaka RDC Sakai City, Osaka February 2017 28.3 years 50,197.06 9,870 12.5 L-3 Daiei-Ibaraki Process Center Ibaraki City, Osaka October 2017 46.2 years 50,783.58 6,810 12.6 Malaysia 658 M-1 AEON Taman Universiti Shopping Centre (Note 5) June 2014 21.2 years 22,870.00 0.8 Johor (RM20 million) Malaysia 5,252 M-2 AEON MALL SEREMBAN 2 Total (49 properties as of Jul. 31, 2023) Negeri Sembilan Province September 2016 18.6 years 81,135.00 4.0 (RM215 million) 18.0 years 4,241,745.30 468,332 1.3 ÆON REIT Investment Corporation 65#66Appraisal value (1/2) FPTerminal Property number Property name Acquisition price (Millions of yen) (Note 1) book value (Millions of yen) (Note 1) Unrealized gain (Millions of yen) Appraisal value (Millions of yen) Capitalization Rate based on direct capitalization method (%) (Note 2) 20th FP (Jan. 31, 2023) 21st FP (Jul. 31, 2023) Difference 20th FP (Jan. 31, 2023) 21st FP (Jul. 31, 2023) Difference SRSC-1 AEONLake town mori (Note 3) 21,190 17,332 6,867 24,200 24,200 4.6 4.6 SRSC-2 AEON Laketown kaze (Note 3) 6,730 5,295 2,654 7,940 7,950 10 5.0 5.0 RSC-1 AEON MALL Morioka 5,340 5,009 2,050 6,950 7,060 110 6.5 6.4 0.1 RSC-2 AEON MALL Ishinomaki 6,680 5,436 1,633 7,070 7,070 6.2 6.2 AEON MALL Mitouchihara 16,460 12,741 4,958 17,700 17,700 5.8 5.8 RSC-3 AEON MALL Mitouchihara (land) 105 108 9 117 118 1 RSC-4 AEON MALL Ota 6,860 6,041 2,168 8,210 8,210 6.3 6.3 RSC-5 AEON Sagamihara Shopping Center 10,220 9,288 1,111 10,400 10,400 5.2 5.2 RSC-6 AEON MALL Ogaki 4,950 3,092 1,547 4,840 4,640 200 7.2 7.2 RSC-7 AEON MALL Suzuka 9,660 8,908 1,791 10,700 10,700 6.0 6.0 RSC-8 AEON MALL Meiwa 3,290 3,114 545 3,660 3,660 6.3 6.3 RSC-9 AEON MALL Kasai-Hojo 7,230 5,383 2,326 7,720 7,710 10 6.7 6.6 0.1 RSC-10 AEON MALL Hiezu 7,780 5,902 1,567 7,480 7,470 10 6.7 6.7 RSC-11 AEON MALL Kurashiki 17,890 16,691 2,308 20,000 19,000 1,000 6.0 5.9 0.1 RSC-12 AEON MALL Ayagawa 8,740 5,395 3,554 8,850 8,950 100 6.4 6.3 0.1 RSC-13 AEON MALL Nogata 12,546 10,228 4,171 14,400 14,400 6.0 6.0 RSC-15 AEON MALL KYOTO 21,470 18,692 4,007 22,300 22,700 400 4.7 4.6 0.1 RSC-16 AEON MALL Sapporo-Hiraoka 5,900 4,898 1,321 6,220 6,220 6.1 6.1 RSC-17 AEON MALL Kushiro-Showa 1,780 1,742 147 1,890 1,890 6.7 6.7 RSC-18 AEON MALL Shinrifu North Wing 2,560 3,257 977 2,280 2,280 6.3 6.3 RSC-19 AEON MALL Yamagata-Minami 1,350 1,173 306 1,480 1,480 6.5 6.5 RSC-20 AEON MALL Yokkaichi-Kita 2,210 2,172 327 2,480 2,500 20 20 6.0 6.0 RSC-21 AEON MALL Yamatokoriyama 14,452 12,110 2,789 14,700 14,900 200 5.6 5.5 0.1 AEON MALL Chiba-Newtown RSC-22 (Mall Building, Cinema and Sports Building) 12,198 10,965 1,134 11,900 12,100 200 4.8 4.7 10.1 (Note 4) RSC-23 AEON MALL Kofu Showa (Note 5) 15,489 13,417 3,782 17,200 17,200 RSC-24 AEON MALL Tomakomai 7,840 6,910 1,269 8,180 8,180 5.6 5.6 5.8 5.8 ÆON REIT Investment Corporation 66#67Appraisal value (2/2) FPTerminal Property number Property name Acquisition price (Millions of yen) (Note 1) book value (Millions of yen) (Note 1) Unrealized gain (Millions of yen) (Note 2) Real estate appraisal value (mm) Capitalization rate based on direct capitalization method (%) 20th FP (Jan. 31, 2023) 21st FP (Jul. 31, 2023) 20th FP 21st FP Difference Difference (Jan. 31, 2023) Jul. 31, 2023) RSC-25 AEON MALL Oyama 6,280 5,279 1,030 6,210 6,310 100 6.6 6.5 0.1 RSC-26 AEON MALL Itamikoya 16,860 14,684 2,915 17,300 17,600 300 5.6 5.5 10.1 RSC-27 AEON MALL Kagoshima 13,400 11,700 1,899 13,400 13,600 200 5.9 5.8 10.1 RSC-28 AEON MALL Tsuchiura 12,030 10,164 1,935 11,900 12,100 200 6.2 6.1 0.1 RSC-29 AEON MALL Kahoku 9,940 7,805 2,794 10,500 10,600 100 6.8 10 6.7 0.1 RSC-30 AEON MALL Shimotsuma 9,552 8,533 2,066 10,400 10,600 200 6.3 6.2 0.1 RSC-31 AEON MALL Kyoto Gojo 13,333 12,702 1,197 13,900 13,900 4.8 4.8 RSC-32 AEON MALL Fukutsu 18,040 17,007 1,592 18,300 18,600 300 5.4 5.3 0.1 RSC-33 AEON Mall Tamadaira Woods 9,667 9,166 1,033 10,200 10,200 4.9 4.9 RSC-34 AEON MALL Takasaki 17,164 16,577 922 17,500 17,500 5.3 5.3 RSC-35 AEON MALL Narita 14,001 13,869 330 14,200 14,200 4.7 4.7 RSC-36 AEON MALL Shinkomatsu 15,350 14,683 816 15,500 15,500 RSC-37 AEON MALL Sagayamato 3,720 3,585 244 3,830 3,830 6.2 6.2 RSC-38 AEON MALL Wakayama 16,840 16,959 159 16,800 RSC-39 AEON MALL Miyakonojo Ekimae 4,460 4,519 9 4,510 5.7 CSC-1 AEON Chigasaki-Chuo Shopping Center 6,410 6,534 155 6,580 6,690 110 5.0 4.9 ▲0.1 CSC-2 AEON STYLE Kemigawahama 3,748 3,181 588 3,920 3,770 150 6.1 6.0 0.1 CSC-3 AEON Kireuriwari Shopping Center 4,394 4,081 668 4,760 4,750 10 5.1 5.1 CSC-4 AEON Ueda Shopping Center 5,350 5,267 572 5,840 5,840 6.5 6.5 L-1 Daiei-Kawasaki Process Center 14,280 13,114 3,085 15,800 16,200 400 4.5 4.4 0.1 L-2 AEON Minami-Osaka RDC 9,870 9,109 2,590 11,500 11,700 200 4.4 4.3 10.1 L-3 Daiei-Ibaraki Process Center 6,810 6,722 1,277 8,150 8,000 150 4.5 4.4 0.1 M-1 AEON Taman Universiti Shopping Centre (Note 6,7) 658 (RM20 million) 595 40 636 635 (RM18million) (RM2million) (RM20.7million) (RM20.5million) M-2 AEON MALL SEREMBAM 2 (Note 7) 5,252 (RM215 million) 7,405 7,475 (RM241million) (RM241million) Total (As of the end of the Jul. 2023) 468,332 80,965 476,599 499,599 ÆON REIT Investment Corporation 67#68Major revitalization investments with rent increase (Results and Planned) Result/ Planned Property name Rent revision timing Contents Revitalization investment Amount (yen) (Note1 2) Effect of revitalization investment (annualized) Rent increase(yen) Return on investment Result AEON MALL Nogata Mar. 2014 Exterior wall repair work 109 mm 8 mm 7.4% Result AEON MALL Hiezu Apr. 2015 Large-scale renewal 105 mm 8 mm 7.7% Result AEON Lake Town kaze Apr. 2015 Large-scale renewal 312 mm 21 mm 6.8% Result AEON MALL Morioka Apr. 2016 Expansion of floor space 790 mm 57 mm 7.3% Result AEON MALL Yokkaichi-Kita Jul. 2017 Food court renewal 113 mm 9 mm 8.5% Result AEON MALL Ota Jul. 2017 New escalator installation 199 mm 14 mm 7.3% Result AEON MALL Tomakomai (note3) Aug. 2017 Exterior wall painting 226 mm 5 mm 2.2% Result AEON MALL Suzuka Nov. 2017 Large-scale renewal 296 mm 22 mm 7.7% Result AEON MALL Kurashiki Dec. 2017 Large-scale renewal 132 mm 9 mm 7.5% Result AEON Kireuriwari SC Mar. 2018 Exterior wall painting 129 mm 6 mm 5.1% Result AEON MALL Kofu Showa Sep. 2018 Construction of existing building due 781 mm 50 mm 6.5% to extension Result AEON MALL Meiwa Nov. 2019 Large-scale renewal 162 mm 13 mm 8.3% Result AEON Ueda SC Dec. 2021 Exterior wall painting 271 mm 17 mm 6.5% Result AEON MALL Shimotsuma Dec. 2022 Exterior wall painting 360 mm 23 mm 6.5% Result AEON MALL Sapporo-Hiraoka Feb. 2023 Invertor board installation 20 mm 1 mm 7.8% Result AEON MALL Shimotsuma Mar. 2023 Floor replacement work 14 mm 1 mm 6.7% Result Result AEON Chigasaki-Chuo SC AEON MALL Morioka Apr. 2023 Floor replacement work 11 mm 0.6 mm 6.0% May, 2023 Fire shutter installation 38 mm 3 mm 8.2% Planned AEON MALL Yokkaichi-Kita Oct. 2023 Partition wall repair work 9 mm 0.8 mm 9.3% Planned Planned AEON MALL Morioka AEON Ueda SC Dec. 2023 Drainage facility reinforcement work 20 mm 1 mm 8.2% Dec. 2023 Large-scale renewal 892 mm 57 mm 6.5% ÆON REIT Investment Corporation 68#69Revitalization investment cases AEON MALL Suzuka - Revitalization work (Nov. 2017) Revitalization for renewal opening for about 80 sections <<-11 AEON Kireuriwari SC - Exterior wall painting (Mar.2018) Exterior wall painting for improving property value After Before Food Forest RONE 全国の 承ります。 FON AEON MALL Kofu Showa - Expansion of floor space (extended Nov. 2017, acquired Sep. 2018) Large-scale extension building has been newly established and existing building has been renewed Before AEON MALL After AEON Ueda - Exterior wall painting (Dec. 2021) Exterior wall painting for improving property value AEON MALL Meiwa - Revitalization work (Nov. 2019) Food court renewal for improving user's convenience いないキッチン どん AEON MALL Kurashiki - Revitalization work (Oct. 2022) Revitalization for reopening in Oct. 2022 After Before ÆON REIT Investment Corporation After ALON Before 69#70Performance trends of stores in the portfolio (1/2) Master lease company operating revenue (Note 1) (billion yen) 30.0 25.0 27.2 26.4 25.5 25.4 25.5 24.3 20.0 22.6 22.6 22.8 15.0 10.0 5.0 Mar. 2021 Feb. 2022 (12 months) ¥92.5 bn Mar. 2022 Feb. 2023 (12 months) ¥103.8 bn 0.0 Mar-May 2021 Jun-Aug 2021 Sep-Nov 2021 Dec 2021- Feb 2022 Mar-May 2022 Jun-Aug 2022 Sep-Nov 2022 Dec 2022- Feb 2023 Mar-May 2023 Sales trends of individual properties (Note 2,3) (Based on year-on-year sales from Dec. 2022 to May. 2023) 1 property 12 properties 22 properties 9 properties 95~100% 100 105% 105-110% 110% or more 0% 2.3% 27.3% 50.0% 20.5% YoY sales index Less than 90% 90-95% (Dec. 2022 May 2023) % of total 0% ÆON REIT Investment Corporation 70 10#71Performance trends of stores in the portfolio (2/2) Performance trends of End tenants in the portfolio (Note 1) 99% 98.0% 98% 98.6% 98.2% 98.2% 98.3% 98.2% 98.2% 98.1% 97.9% 97.7% 97.8% 97% 96% 95% Nov 2020 Feb 2021 May 2021 Aug 2021 Nov 2021 Feb 2022 May 2022 Aug 2022 Nov 2022 Feb 2023 May 2023 Sales status of end tenants (every 3 months sales compared to the same period of the previous year) (Note 2) 150% 130% 144.9% 107.3% 106.7% 108.8% 106.1% 107.5% 110% 100.9% 95.0% 95.5% 92.0% 89.4% 90% Reaction from the previous year's self-restraint in specialty stores 70% 50% Sep-Nov 2020 Dec 2020- Feb 2021 Mar-May 2021 Jun-Aug 2021 Sep-Nov 2021 Dec 2021- Feb 2022 Mar-May 2022 Jun-Aug 2022 Sep-Nov 2022 Dec 2022- Feb 2023 Mar-May 2023 71 ÆON REIT Investment Corporation#72Average cap rate (%) 6.4 Entire portfolio (Note 1) 6.2 6.0 5.8 5.6 5.4 Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 (%) 6.6 6.4 6.2 6.0 5.8 5.6 5.4 5.2 5.0 By area (Note 1,2) three largest cities ⚫others Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ÆON REIT Investment Corporation (%) 6.4 6.2 6.0 5.8 5.6 5.4 5.2 5.0 4.8 4.6 4.4 4.2 By facility type (Note 1) ▪retail property Logistics facility Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan Jul. Jan. Jul. Jan. Jul. Jan. Jul. Jan. Jul. 2014 2021 2022 2015 2016 2017 2018 2019 2020 2023 72#73Status of debts (1/2) Borrowing details List of lenders Division Borrowing Amount Borrowing Date Maturity Short-term ¥9.3bn February 1, 2023 February 1, 2024 Floating rate/Fixed rate (Note 1) Floating rate Interest rate (Note 2) Numbers of Lenders 26 (compared to previous period ±0) base interest rate +0.22000% Mizuho Bank ¥26.4bn 19.2% Total Long-term Long-term Long-term Long-term Long-term Long-term Long-term Long-term Long-term ¥5.0bn ¥9.3bn November 25, ¥5.0bn 2013 ¥4.5bn February 27, 2015 ¥6.6bn May 31, 2016 ¥1.0bn February 29, 2016 ¥6.7bn October 20, 2016 ¥2.7bn October 20, 2016 ¥4.1bn October 20, 2016 ¥6.8bn March 28, 2017 March 28, 2017 December 27, Sumitomo Mitsui Banking ¥22.1bn 16.1% October 20, 2023 October 21, 2024 Effective fixed rate 1.76375% Sumitomo Mitsui Trust Bank ¥20.6bn 15.0% Effective fixed rate 1.40390% Bank of Tokyo-Mitsubishi UFJ ¥17.4bn 12.7% October 20, 2025 Effective fixed rate 0.99100% Norinchukin Bank ¥8.0bn 5.8% Long-term ¥3.4bn October 20, 2027 October 20, 2023 October 20, 2025 October 20, 2026 October 21, 2024 October 20, 2026 October 20, 2023 Effective fixed rate 1.40730% Effective fixed rate Effective fixed rate Effective fixed rate Effective fixed rate Effective fixed rate 0.61375% Mizuho Trust & Banking ¥6.3bn 4.6% 0.87250% Mitsubishi UFJ Trust and Banking (Note 3) ¥3.1bn 2.3% 1.00300% Resona Bank ¥1.2bn 0.9% 0.83800% AEON BANK ¥3.9bn 2.8% 1.09710% Development Bank of Japan ¥4.5bn 3.3% Effective fixed rate 0.52270% Long-term ¥0.3bn Long-term ¥4.6bn Long-term Long-term ¥0.4bn ¥4.0bn Long-term Long-term Long-term ¥5.0bn Long-term ¥6.5bn Long-term 2017 December 27, 2017 November 22, 2018 November 22, 2018 November 22, 2018 ¥4.0bn October 20, 2020 ¥4.8bn October 20, 2020 October 20, 2020 October 20, 2021 ¥6.6bn October 20, 2021 Hyakugo Bank ¥2.1bn 1.5% October 20, 2023 Fixed Rate 0.60000% Hiroshima Bank ¥2.0bn 1.5% October 20, 2023 Effective fixed rate 0.59700% San ju San Bank (Note 4) ¥4.6bn 3.3% October 20, 2023 77 Bank ¥1.0bn 0.7% Fixed Rate 0.64000% Chiba Bank ¥0.3bn 0.2% Long-term Long-term ¥3.5bn ¥2.5bn Long-term ¥2.6bn Long-term ¥8.6bn Long-term ¥5.1bn Long-term ¥3.0bn Long-term Long-term Long-term Long-term Long-term Total Sum total ÆON REIT Investment Corporation October 20, 2021 October 20, 2021 March 22, 2022 March 22, 2022 March 22, 2022 March 22, 2022 ¥4.2bn October 20, 2022 ¥3.0bn October 20, 2022 ¥5.7bn October 20, 2022 ¥4.6bn October 20, 2022 ¥3.3bn October 20, 2022 ¥128.1bn ¥137.4bn October 20, 2025 October 21, 2024 October 20, 2026 October 20, 2027 October 20, 2026 October 20, 2028 October 22, 2029 October 20, 2031 October 20, 2025 October 20, 2027 October 22, 2029 October 20, 2031 October 21, 2024 October 20, 2025 October 20, 2027 October 22, 2029 October 20, 2025 Effective fixed rate 0.85100% Nippon Life Insurance ¥0.3bn 0.2% Effective fixed rate 0.35900% Meiji Yasuda Life Insurance ¥0.8bn 0.6% Effective fixed rate Effective fixed rate Effective fixed rate Effective fixed rate Effective fixed rate Effective fixed rate Effective fixed rate Effective fixed rate Effective fixed rate Effective fixed rate 0.51400% 0.61400% SBI Shinsei Bank ¥2.3bn 1.7% 0.46000% 0.64900% The Juroku Bank ¥0.3bn 0.2% Momiji Bank ¥0.3bn 0.2% 0.76900% 0.99700% The Gunma Bank ¥1.5bn 1.1% 0.42150% The Yamaguchi Bank ¥1.4bn 1.0% 0.62050% Kansai Mirai Bank ¥0.8bn 0.6% 0.89600% 1.13010% Floating Effective fixed rate Effective fixed rate Effective fixed rate Effective fixed rate 0.52750% 0.80750% base interest rate +0.22000% The Nishi-Nippon City Bank Daiwa Next Bank Kiyo Bank Sumitomo Mitsui Trust Bank (trust account) ¥0.9bn 0.7% ¥1.6bn 1.2% ¥0.4bn 0.3% ¥3.3bn 2.4% 1.10300% 0.52750% Total ¥137.4bn 100.0% 73#74Status of debts (2/2) Investment corporation bonds Serial Amonunt Number Issued Division Interest rate Date of Determining Conditions External Redemption date Rating authentication Term Description Lead manager JCR JCR For Institutional 1 ¥2.0bn 0.961% October 6, 2015 October 10, 2025 10 years Without collateral or guarantee AA- investor 2 ¥1.0bn For Institutional investor 0.470% October 13, 2016 October 20, 2026 10 years Without collateral or guarantee AA- I 3 ¥1.0bn For Institutional investor 1.200% October 13, 2016 October 20, 2036 20 years Without collateral or guarantee AA- For Institutional ¥2.0bn 0.680% November 28, 2017 December 8, 2027 10 years Without collateral or guarantee AA- Daiwa Securities Co.,Ltd./SMBC Nikko Securities Inc. SMBC Nikko Securities Inc./Mizuho Securities Co., Ltd. Mitsubishi UFJ Morgan Stanley Securities Co.,Ltd SMBC Nikko Securities Inc./Mizuho Securities Co.,Ltd Mitsubishi UFJ Morgan Stanley Securities Co.,Ltd SMBC Nikko Securities Inc./Mizuho Securities Co.,Ltd Daiwa Securities Co.,Ltd investor 50 ¥15.0bn For retail 0.783% November 16, 2018 December 7, 2028 10 years Without collateral or guarantee AA- SMBC Nikko Securities Inc./Daiwa Securities Co.,Ltd Mizuho Securities Co.,Ltd 6 ¥12.0bn For retail 0.726% November 15, 2019 December 6, 2029 10 years Without collateral or guarantee AA- Green1 SMBC Nikko Securities Inc./Daiwa Securities Co.,Ltd Mizuho Securities Co.,Ltd 7 ¥18.0bn For retail 0.992% November 13, 2020 December 4, 2030 10 years Without collateral or guarantee AA- SU1 SMBC Nikko Securities Inc./Daiwa Securities Co.,Ltd. Mizuho Securities Co.,Ltd/Okasan Securities Co.,Ltd. ¥51.0bn Breakdown of interest-bearing debts leading bank 8% Government- controlled bank 12% local bank 12% 2nd FP (Jan. 31, 2014) Megabanks 42% Loan and trust company 28% ÆON REIT Investment Corporation investment corporation bond (For Retail) 24% investment corporation bond (For Institutional investor), 3% Jointly-Operated Specified Money Trust 2% local bank 9% 21st FP (Jul. 31, 2023) Megabanks 35% Loan and trust company, assurance company Government-controlled 16% leading bank bank 0% 4% 6% 74#75Unit price chart 21st FP End unit price 21st FP Average daily volume (yen) 190,000 Trading Volume (Right axis) -AEON REIT Investment Unit Price (Left axis) ¥ 149,700 4,844 units (unit) 120,000 170,000 150,000 130,000 110,000 90,000 70,000 50,000 | Nov. 2013 Jul. 2014 Mar 2015 Nov. 2015 Jul. 2016 Mar. 2017 Nov 2017 Jul. 2018 Mar. 2019 Nov. 2019 Jul 2020 Mar. 2021 Nov. 2021 Jul. 2022 Mar. 2023 DPU NAV per unit Net assets per unit Depreciatio n 100,000 80,000 60,000 40,000 20,000 Jul. 2018 (11th FP) Jan. 2019 (12th FP) Jul. 2019 ( 13th FP) Jan. 2020 (14th FP) Jul. 2020 ( 15th FP) Jan. 2021 (16th FP) Jul. 2021 (17th FP) Jan. 2022 (18th FP) Jul. 2022 (19th FP) Jan. 2023 (20th FP) Jul. 2023 (21st FP) ¥2,956 ¥3,066 ¥3,047 ¥3,074 ¥3,178 ¥3,184 \ 3,200 ¥3,315 ¥3,274 ¥3,283 ¥3,350 \ 130,957 ¥ 133,465 ¥ 136,778 ¥ 140,517 \ 142,360 ¥144,604 \ 146,432 ¥ 148,470 ¥ 148,721 ¥ 149,772 ¥ 151,071 \ 111,372 ¥111,413 ¥ 111,437 ¥112,528 ¥ 112,632 ¥112,638 ¥ 112,588 \ 115,675 ¥ 115,730 \ 115,745 \ 116,477 ¥4.3 bn ¥4.4 bn \ 4.4 bn ¥4.5 bn ¥4.6 bn \ 4.6 bn \ 4.6 bn ¥ 5.2 bn \ 5.1 bn \ 5.1 bn ¥ 5.5 bn ÆON REIT Investment Corporation 75#76Composition of unitholders Number of unitholders and Investment Units by unitholder type Individuals and others Financial institutions (including financial instruments firms) Other domestic corporations Foreign corporations Total Number of Units 20th Period (January 31, 2023) 21st Period (July 31, 2023) 20th Period (January 31, 2023) Number of Unitholders 21st Period (July 31, 2023) Number of Investment Units % of total Number of Investment Units % of total Number of Unitholders % of total Number of Investment Units % of total 160,121 7.8% 168,866 8.0% 23,442 96.3% 23,979 96.3% 1,164,319 56.9% 1,205,013 56.7% 172 0.7% 180 0.7% 423,673 20.7% 439,920 20.7% 404 1.7% 405 1.6% 296,354 14.5% 310,153 14.6% 336 1.4% 341 1.4% 2,044,467 100.0% 2,123,952 100.0% 24,354 100.0% 24,905 100.0% Investment unit ownership ratio by unitholder type Jul. 2021 (17th FP) 7.9% 57.0% 21.3% 13.8% Jan. 2022 (18th FP) 8.2% 56.1% 21.0% 14.8% Major unitholders (As of July. 31, 2023) Unitholder Name 1 Custody Bank of Japan, Ltd.(trust account) 2 AEON Co., Ltd. 3 The Master Trust Bank of Japan, Ltd. (trust account) Number of Units % of Total 419,876 19.8% 368,169 17.3% 324,929 15.3% Jul. 2022 (19th FP) 8.0% 56.7% 20.7% 14.6% 4 The Nomura Trust & Banking Co., Ltd. (trust account) 5 SMBC Nikko Securities Inc. 81,633 3.8% 55,332 2.6% Jan. 2023 (20th FP) 7.8% 56.9% 6 STATE STREET BANK WEST CLIENT - TREATY 505234 28,052 1.3% 20.7% 14.5% 7 Sumitomo Mitsui Trust Bank, Limited 27,150 1.3% 8 SSBTC CLIENT OMNIB US ACCOUNT 23,869 1.1% Jul. 2023 (21st FP) 8.0% 56.7% 20.7% 14.6% 9 STATE STREET BANK AND TRUST COMPANY 505103 10 The Shinkumi Federation Bank 23,687 1.1% Individuals and others Financial institutions (including financial instruments firms) Other domestic corporations Foreign corporations Total 22,797 1.1% 1,375,494 64.8% ÆON REIT Investment Corporation 76#77Notes (IV) P.64-65 Portfolio list (Note 1) The expected loss rate of the buildings for earthquake damage with a reproduction period of 475 years stated in the earthquake risk assessment report for each property is listed. The figure for "Total" is based on the "48 Property Building Earthquake Risk Survey Portfolio" as of Dec. 2022. "Total" is "PML value of the entire domestic portfolio" and not the average. (Note 2) The acquisition price, book value, appraisal value and unrealized gain / loss of "AEON Lake Town mori" and "AEON Lake Town kaze" correspond to the quasi co- ownership share of trust beneficiary money (40%). (Note 3) The acquisition price, book value, appraisal value and unrealized gain / loss of "AEON MALL Chiba-Newtown (The shopping mall building and The cinema and sports building)" include the amount of additional acquisition of the land acquired on Oct. 27, 2022. (Note 4) The acquisition price, book value, appraisal value and unrealized gain / loss of "AEON MALL Kofu Showa" include the amount of additional acquisition of the additional building acquired on Sep. 3, 2018. The PML value of "AEON MALL Kofu Showa" was calculated at the time of acquisition of the extension building, so the "existing building" is 2.5% and the "extension building" is 3.1%. (Note 5) The acquisition price, book value at the end of the period, appraisal value and unrealized gain / loss of "AEON Taman Universiti Shopping Center" are based on the co-ownership interest transferred from AEON Malaysia, which owns the entire property. The amount corresponding to the percentage of similar rights (18.18% of the total) is stated. P.66-67 Appraisal value (Note 1) Listed acquisition price, FP Terminal book value, real estate appraisal value is the figure as of Jul. 31, 2023. (Note 2) Unrealized gains/losses are calculated as appraisal value minus book value at the end of the period. (Note 3) For AEON Lake Town mori and AEON Lake Town kaze, their appraisal values, price based on direct capitalization method, price based on DCF method, and NOI describe the Investment Corporation's pro-rata portion of the quasi-coownership interest (jun kyōyū-mochibun) in the beneficially rights of real estate in trust (40% for each property). (Note 4) The acquisition price, book value, appraisal value and unrealized gain / loss of "AEON MALL Chiba-Newtown (The shopping mall building and The cinema and sports building)" include the amount of additional acquisition of the land acquired on Oct. 27, 2022. (Note 5) AEON MALL Kofu Showa has acquired ¥7,100 mm of the extension building on Sep. 3, 2018, and the above appraisal value refers to the integrated figure of the existing and the extension building. (Note 6) The real estate appraisal value indicates the amount equivalent to the right similar to the co-ownership interest in the trust related to the trust beneficiary interest in real estate (18.18%). (Note 7) The following conversion of the Malaysian ringgit into yen is used for each period: rate as of Jan. 31, 2023 for 20th FP (1 RM= ¥30.73 (rounded down to the third digit)) and Jul. 31, 2023 for 21st FP (1 RM= ¥31.02 (rounded down to the third digit)). P.68 Major revitalization investments with rent increase (Results and Planned) (Note 1) "Revitalization investment amount" refers to the amount mentioned in construction contracts for improving the value of the managed property. (Note 2) For the results in the above table (by Jan. 2023), revitalization investments took place since listing with an increase in rent of ¥100 mm or more are shown. For the results and plan after Feb, 2023, all of the revitalization investments with an increase in rent are shown. (Note 3) Rent increase period is 20 years. ÆON REIT Investment Corporation 77#78Notes (IV) P.70 Performance trends of stores in the portfolio (1/2) (Note 1) The above graph shows the income and the incidental income from the end tenants of the master lease company of domestic retail properties owned by the Investment Corporation as of the end of Jul. 2023 (44 properties). (Note 2) The graph above shows the index compared to the same period of the previous year of the sales from Dec. 2022 to May 2023 of the 44 domestic retail properties owned by the Investment Corporation as of the end of Jul. 2023 (compared to Dec. 2021 to May 2022). (Note 3) The composition ratio is rounded off to the first decimal place. Therefore, the total value may not be 100.0% P.71 Performance trends of stores in the portfolio (2/2) (Note 1) The graph above shows substantial occupancy rate of the total leased area (master lease) deducting vacant floor area of domestic retail properties owned by the Investment Corporation as of the end of Jul. 2023 (44 properties) (rounded to the first decimal place). (Note 2) The graph above shows the index of the three months end tenant sales compared to the same period of the previous year of domestic retail properties owned by the Investment Corporation as of the end of Jul. 2023 (44 properties). P.72 Average cap rate (Note 1) Average cap rate is calculated excluding Malaysian properties whose return yield by direct capitalization method is not calculated. (Note 2) "The three largest cities" indicates the Metropolitan, Chubu and Kinki areas, i.e. Metropolitan area covers Tokyo, Kanagawa, Saitama and Chiba pref., Chubu area covers Aichi, Gifu and Mie pref. and Kinki covers Osaka, Kyoto, Hyogo, Nara and Shiga pref. in each. P.73 Status of debts (1/2) (Note 1) Floating interest rates on short-term borrowings are Japanese Yen Tibor published by the Japanese Bankers Association. However, if there is no corresponding period, the interest rate reasonably determined by the agent by the linear apportionment method. (Note 2) While funds are borrowed at floating rates, the interest rates are fixed in effect by entering into rate swap agreements to hedge interest rate fluctuation risk. The figures are the interest rates calculated after taking into consideration the effect of interest swaps. (Note 3) As of Apr. 16, 2018, Mitsubishi UFJ Trust and Banking Corporation's lending operations were transferred to MUFG Bank, Ltd. thorough a company split. In accordance with this, the loan claims held by Mitsubishi UFJ Trust and Banking Corporation ware succeeded to MUFG Bank, Ltd. as of the same date. (Note 4) On May 1, 2021, Mie Bank and Daisan Bank merged to form San ju San Bank, Ltd. ÆON REIT Investment Corporation 78#79Disclaimer Disclaimer These materials contain forward-looking statements with respect to the future business results, plans, and management targets and strategies of AEON REIT Investment Corporation (AEON REIT). These forward-looking statements are based on assumptions and judgments in accordance with information available to AEON REIT and AEON Reit Management Co., Ltd. at the time of preparation of these materials. Such forward-looking statements are subject to known and unknown risks and uncertainties and may be affected by these risks, uncertainties and other factors. Forward-looking statements with respect to the future business results, plans, and management targets and strategies are not guarantees of the future results, business performance, or financial condition of AEON REIT, and actual results could differ materially due to various factors. AEON REIT does not guarantee or promise that these forward-looking statements will be achieved. While all reasonable measures have been taken to ensure that the information presented herein is correct, AEON REIT makes no assurance or guarantee as to the accuracy or completeness of that information. The contents of the information may be changed or eliminated without notice. These materials contain charts, data, etc. prepared by AEON Reit Management Co., Ltd. based on information provided by third parties or publicly announced by third parties. These materials also include analyses, judgments and other views based on information currently available to AEON REIT and AEON Reit Management Co., Ltd. Furthermore, there are other views that differ from these, and AEON REIT and AEON Reit Management Co., Ltd. may change these views in the future. AEON Reit Management Co., Ltd. assumes no obligation to update and publicize any forward-looking statements in these materials. These materials are provided for the sole purpose of presenting general information and explaining the management strategies of AEON REIT, and are not intended as a solicitation to purchase AEON REIT's investment units, nor to enter into any other financial instruments transaction agreement. When making investments, investors are advised to use their own judgment and discretion. Disclaimer for Dutch Investors The units of AEON REIT Investment Corporation ("AEON REIT" or the "AIF") are being marketed in the Netherlands under Section 1:13b of the Dutch Financial Supervision Act (Wet op het financieel toezicht, or the "Wft"). In accordance with this provision, AEON Reit Management Co., Ltd. (the "AIFM") has notified the Dutch Authority for the Financial Markets (Authoriteit Financiële Markten, the "AFM") of its intention to offer these units in the Netherlands. The units of AEON REIT will not, directly or indirectly, be offered, sold, transferred or delivered in the Netherlands, except to or by individuals or entities that are qualified investors (gekwalificeerde beleggers) within the meaning of Article 1:1 of the Wft. As a consequence, neither the AIFM nor AEON REIT is subject to the license requirement for investment institutions (beleggingsinstellingen) or their managers pursuant to the Wft. Consequently, the AIFM and AEON REIT are only subject to the supervision of the Dutch Central Bank (De Nederlandsche Bank, "DNB") or the AFM for the compliance with the ongoing regulatory requirements as referred to in the Dutch law implementation of Article 42 of the AIFMD. According to Article 23 the prospectus is not subject to approval by the AFM. No approved prospectus is required to be published in the Netherlands pursuant to Article 3 of the Regulation (EU) 2017/1129 (the "Prospectus Regulation") as amended and applicable in the Netherlands. Please visit AEON REIT's home page (https://www.AEON -jreit.co.jp/en/index.html) to access its latest annual report referred to in Article 22(1) of the AIFMD or information provided under Article 23 of the AIFMD. There is no prospectus available. Asset Manager: AEON Reit Management Co., Ltd. (Registration of financial instruments business: Kanto Local Finance Bureau, Director-General (Financial Instruments), No. 2668) Contact Information ÆON REIT Investment Corporation Please contact us any questions: AEON Reit Management Co., Ltd. Finance and Planning Department TEL: +81-3-6779-4073 79