#1Think bold today for a brighter tomorrow. MC-UBS GROUP Japan Retail Fund Investment Corporation MCUBS MidCity Investment Corporation Investor Presentation for the Merger August 28, 2020#2Contents 1. Overview of the Merger P. 2 2. Significance of the Merger P. 10 3. Growth Strategy P. 18 4. Financial Strategy P. 23 5. Post-Merger Financial Forecast P. 26 Appendix P. 28 (Note) Figures of less than one unit are truncated and percentage figures are calculated by rounding to the nearest whole number.#31. Overview of the Merger#4Basic Principle of the New Investment Corporation The largest (1) diversified J-REIT(2) investing in real estate that provide metropolitan life foundations ||||| MC-UBS GROUP |||| MC-UBS GROUP Japan Retail Fund Investment Corporation MCUBS MidCity Investment Corporation (JRF) (MMI) Japan Metropolitan Fund Investment Corporation Support metropolitan life (live, work and consume) in Japan from the perspective of real estate *Please refer to page 41 for the notes to this page. 3#5Significance of the Merger Enhance unitholder values of both JRF and MMI through transition into diversified REIT 1. Fit to Environment Changes Promote flexible operation of facilities beyond the framework of asset classes, amid changes in operational environment Strengthen capabilities to operate mixed-use properties by area or by asset level, under the structure of diversified REIT 2. Expand Investment Universe • Able to acquire mixed-use properties (¹) and residential properties etc. Able to enter into large scale transactions, such as bulk sale of multiple type assets Allow greater flexibility in acquisition strategies to cope with expected changes in the social structure 3. Create the Largest J-REIT Increase market presence significantly Improve stability by more-diversified portfolio Enhance liquidity by increasing market capitalization Enhance Stability Further diversify portfolio Build resilience to deterioration in business environment Increase liquidity of the investment units and exposures in major indices Accelerate Growth Further promote asset replacement and external growth Make the best use of properties beyond the framework of asset class Accelerate investment for growth on the back of higher risk tolerance (1) The term "Mixed-use properties" means properties occupied by more than two types of tenants such as retail, office, residential, hotel or other uses. 4#6Characteristics of JRF and MMI MC-UBS G ROUP Japan Retail Fund Investment Corporation Urban retail properties located in "where people gather" Track record of 18 years The largest J-REIT focusing on retail properties in terms of asset size Promotion of asset replacement from suburban-type to urban-type Main investment target MC-UBS GROUP MCUBS MidCity Investment Corporation Office buildings located in the three major metropolitan areas (Tokyo area, Osaka area and Nagoya area) • • Proactive acquisition of properties since the MC-UBS Group participation as sponsor in 2015 Almost doubled asset size in the past five years Shifted the focus of the portfolio from Osaka area to Tokyo area As of listing(1) (End of) latest period (2) Operating results Before MC-UBS Group participation (6) (End of) latest period (2) Number of properties 4 100 Number of properties(7) 12 25 Asset size (3) 40.9bn yen 877.2bn yen Asset size (3)(7) DPU (4) 3,313 yen 4,500 yen DPU (8) NAV per unit(4)(5) 111,900 yen 223,600 yen NAV per unit (5)(8) 157.6bn yen 1,191 yen 63,500 yen 282.7bn yen 2,049 yen 98,500 yen LeFRONT mozó WONDER CITY GYRE KAWASAKI Le FRONT mozo wonder city *Please refer to page 41 for the notes to this page. Key properties Twin 21 Yokohama i-land Tower Cube Kawasaki 5#7Asset size (based on (anticipated) acquisition price) Number of properties NOI yield (based on (anticipated) acquisition price) (1) (anticipated) acquisition price) (2) Unrealized gain or loss Japan Retail Fund Investment Corporation (as of August 31, 2020) (Pro forma)(5) 888,884 million yen 102 properties 4.9% MCUBS MidCity Investment Corporation (as of June 30, 2020) (6) 282,710 million yen 25 properties 4.5% NOI yield after depreciation (based on 3.6% 3.6% 160,917 million yen 23,241 million yen 45.5% 42.1% Interest-bearing debt 411,725 million yen LTV Credit rating NAV per unit(3) Book value per unit (4) DPU (forecast) DPU (forecast) (after accounting for merger ratio and unit split) AA-(R&I) 223,800 yen 166,400 yen Feb. 2021 Period (38th) (Forecast) 4,500 yen 2,250 yen 126,975 million yen AA-(JCR) 98,500 yen 87,500 yen Jun. 2020 Period (28th) (Actual) 2,049 yen 2,049 yen New Investment Corporation (Japan Metropolitan Fund) (as of March 1, 2021) (Pro forma)(7) 1,191,594 million yen 127 properties 4.7% 3.6% 160,917 million yen 43.9% 538,700 million yen Aim to maintain/improve 108,300 yen 87,500 yen Aug. 2021 Period (39th) (Forecast) 2,286 yen Japan Retail Fund % Investment Corporation (8) Change +1.6% MCUBS MidCity Investment Corporation +11.6% Merged Investment Corporation at a Glance Portfolio Financials Unitholder Value DPU *Please refer to page 41 for the notes to this page. 60#8Post-merger Portfolio Diversification by Area (1) Nagoya Area 5.7% Osaka Area 28.5% Share of Three Metropolitan Areas 88.2% Others 11.8% Diversification by Use (2) Suburban Diversification by Property Size (4) retail 20.2% Others (3) 1.3% Mixed- Asset Size use 11.6% 1,191.5bnyen Urban retail 51.2% Tokyo Area Share of top 10 properties before merger 54.0% Tenant Diversification (5) More than 10 minutes 15.0% Share of top 10 tenants before merger Share of Top 10 Tenants 37.9% JRF 45.3% MMI 57.3% *Please refer to page 42 for the notes to this page. Office 15.6% JRF 35.4% MMI 72.0% Share of Top 10 Properties 31.5% Walking Minutes from Nearest Station (6) Others Within 1 minute 21.3% Fixed Rent Type (based on annual rent) Revenue-based More than 5 minutes and less than or equal to 10 minutes 17.3% Within 10 minutes 98.1% 1.9% 85.0% More than 1 minute and Lease Type (based on annual rent) Ordinary building (land) lease contract 42.3% less than or equal to 5 Fixed-term building (land) lease contract 57.7% minutes Lease Period(7) Average lease period 10.3 years 46.5% 7#9Growth Strategy Enhance Unitholder Value Mid- to Long-term Future Vision Create virtuous cycle where area value and asset value improve together Execute various growth investments . Revenue increase backed by external growth Implementing reconstruction and conversion, etc. Other investment measures for growth such as M&As • Short-to Mid-term Build base for growth and improve profitability Further shift into urban properties and diversify asset type • Aim to increase DPU level Basic Principle of the New Investment Corporation Support metropolitan life (live, work and consume) in Japan from the perspective of real estate 8#10Outline of Merger and Planned Schedule Outline of Merger Name of the new investment corporation Japan Metropolitan Fund Investment Corporation Abbreviation: JMF Planned Schedule Japan Retail Fund Investment Corporation MCUBS MidCity Investment Corporation (JRF) (MMI) Method of the Merger Merger ratio Absorption-type merger Surviving corporation : Japan Retail Fund Investment Corporation (JRF) Dissolving corporation : MCUBS MidCity Investment Corporation (MMI) JRF: MMI 1:1 (Allot 1 JRF investment unit per one MMI investment unit X) * A two for one unit split of JRF is scheduled in order to allot one or more JRF investment units to MMI unitholders and the merger ratio will be based on the number of JRF units after the unit split For reference, the merger ratio based on the number of JRF units before the unit split is JRF: MMI=1:0.5 Execution of the Merger Agreement August 28, 2020 Record date for meeting of unitholders August 31, 2020 Meeting of unitholders October 23, 2020 End of the fiscal period (immediately before the Merger) February 28, 2021 Record date for meeting of unitholders September 13, 2020 Meeting of unitholders October 22, 2020 Delisting February 25, 2021 End of the final fiscal period before the Merger (2) February 28, 2021 Effective date of the Merger Conditions for the Merger The Merger is subject to that a proposal for approval of the Merger Agreement (a special resolution (1)) will be approved at the meetings of unitholders of both JRF and MMI Payment of distribution Middle of May, 2021 March 1, 2021 Payment of merger consideration (3) May, 2021 End of the first fiscal period after the Merger August 31, 2021 (1) Such resolution shall be passed with at least a two-thirds majority of the votes of the attending unitholders with the unitholders in attendance holding over half of the units outstanding. (2) MMI will submit a proposal for a revision of the Articles of Incorporation to change the 29th business period, from the period from July 1, 2020 to December 31, 2020 to that from July 1, 2020 to February 28, 2021, to its general meeting of unitholders to be held on October 22, 2020, subject to approvals of the Merger Agreement at the respective general meetings of unitholders of JRF and MMI. The same shall apply hereinafter. (3) An amount equivalent to the cash distribution for the business period of MMI from July 1, 2020 to February 28, 2021 will be paid as the merger consideration. 9#112. Significance of the Merger#12Environment Changes COVID-19 is accelerating environment changes Widespread e-commerce and remote working Mixed use means higher added value Various types of use head for coexistence and co-prosperity Trend of mixed-use by area and ≫ Place to offer experience that cannot be by property gained via e-commerce Further distinction between online and real Growing needs for living near office Increase in number of elderly people and women who work, and more needs for nursing Growing needs for consumption near home Increase in daytime population due to the spread of work from home Accelerating contraction of rural area economies The decline and outflow of population Increase in vacant facilities Reduction in number of tenants Office Changes in needs for office floors A role of offices is changing from a place for work to a place for interaction No change in advantage of Urban Convenient offices remain highly valued as a place for interaction Decline in needs for floor to sell product Rise in e-commerce Properties in favorable locations will increasingly become mixed-use Conversion into a showrooming space or other use accelerates Retail Residence Urban Office (Headquarters) Needs for consumption in office districts Office (Branches) Commuter-town Added value Satellite Office Suburban Decline in demand for office properties located in suburban areas Showrooming/ hands-on services Facilities that can be used for other purposes, including shops, other services, restaurants, offices and hotels Supermarkets and other facilities deeply engaged in daily living .Needs for consumption................ in living areas Added value Decline in retail properties located in suburban areas Accelerating trend of mixed-use by area or by property Continued concentration of population to urban areas Population inflow into urban areas because of their strengths in social infrastructure Growing needs for residence in Urban Needs for areas where one can work and consume increase III Residential area (Urban) Residential area (Commuter-town) Investment Target of the New Investment Corporation More people prefer to live in urban areas 11#13Increase in Mixed-use Properties Urban Office District Principal commercial districts Commuter-town Major stations/ Residential stations Examples of mixed-use by area Akasaka/Shibuya Through active redevelopment, a number of mixed-use properties which are occupied by retailers and hotels emerged Omotesando/ Aoyama Mixed-use properties containing offices, residence and retail shops increase as the commercial district has expanded Tachikawa A number of mixed-use properties are completed upon redevelopment mainly in the north side of Tachikawa Station Examples of mixed-use by property Office X Retail Twin 21 and Nagoya Lucent Tower are occupied by tenants, including cafes and restaurants and other services for office workers and tenants that prefer spaces with a scenic view in upper floors Retail × Satellite Office KAWASAKI Le FRONT Retail X Office G-Bldg. Daikanyama 02 9 machinomo Retail X Distribution hub Machinoma Omori Fulfills a function as a hub of broad area distribution of online supermarkets Maxvalu Office X Retail Osaka YM Bldg. 12#14Strengths and Challenges of JRF and MMI The Merger is the best way to enhance unitholder values of both JRF and MMI MC-UBS GRO U Japan Retail Fund Investment Corporation Strength Track record of managing operational assets MC-UBS GRO MCUBS MidCity Investment Corporation Operational capabilities Strength Capability to operate offices with deep understanding of market trends Strength Strong presence as one of the largest holders of retail properties in Japan Capabilities of acquisitions Strength Track record of achieving unique external growth Challenge Sector-specialized REIT subject to greater limitations Investment targets Challenge Sector-focused REIT subject to greater limitations Challenge Negative impacts on the retail sector in proportion to the popularization of e-commerce Current environment Challenge Office leasing market uncertainties in association with spreading remote working Breakthrough by the Merger Fit to Environment Changes Expand Investment Universe Create the Largest J-REIT 13#15MC-UBS Asset Management Capability Both JRF and MMI have built up a variety of experiences in multiple asset types Leasing Tenant Relationships Internal and external growth supported by the network of approximately 1,400 tenants Research of Leasing Market Trends of leasing market and rents are analyzed through regular information exchange with research firms Value Enhancement Renewal A number of large-scale renewal works with designing space Reconstruction/ Floor Expansion/ Conversion Reconstruction, floor expansion by building an annex building, tenant replacement premised on conversion, etc. have been implemented Area Management Area Focused Acquisition Property acquisition focuses on specific areas to which competitive tenants are attracted, with an aim to enhance leasing potential in the relevant area Analysis of Flow of People The flow of people is analyzed based on locational information via smartphones, which is extended to analyses of people's movements in the area and utilized for leasing ESG Front-runner among J-REITS The asset manager embarked on ESG efforts from an early stage and signed up to a number of initiatives, as the first of J-REITS or its asset manager Highest-awarded J-REIT Both of the two investment corporations received the highest ESG ratings in the J- REIT sector from external ESG rating parties G-Square Shibuya MMI Dogenzaka Acquisition with a low occupancy rate of 70%. Achievement of revenue increase by raising the occupancy rate and average unit rent GYRE JRF Re-acquisition of the former Esquisse Omotesando as GYRE, after reconstruction of the property. Renovation works in the restaurant floor has been completed recently Omotesando/ Harajuku/ Aoyama JRF MSCI ESG Indices (1) JRF MMI Achievement of upside rent revisions through tenant replacement at 18 properties held in the area MSCI Both are rated as AA, the highest rating in the J- REIT sector, as of August 28, 2020, and selected for MSCI Japan ESG Select Leaders Index, for which only 8 J-REITs are selected (1) Inclusion of both of the investment corporations in the MSCI Index and their use of MSCI's logo, trademarks, service marks and indices in this document are not intended to constitute sponsorship, advertisement or sales promotion by MSCI or its affiliates for the two investment corporations. MSCI has the exclusive right to use the MSCI Index, and MSCI and the MSCI Index and its logo are trademarks and service marks of MSCI and its affiliates. 14#16Fit Ourselves to Environment Changes Implement internal growth measures beyond asset type by leveraging our capabilities 1 Seek the best use of properties Examine options of reconstruction and conversion, for optimal use of properties free from their traditional uses Consistently positive attitude for tenant replacement and renewal 2 Area Management Area management in view of synergy effects among tenants of different uses in urban areas in which further increase of mixed-use properties is expected Plan Plan Increase in value of the adjacent land as an office site by increasing the value of a retail property KAWASAKI Le FRONT X Cube Kawasaki A food court is set up, aiming to improve convenience of office workers in the surrounding area GMS near stations in residential areas Retail property near stations in residential areas Urban amusement facility Supermarket at lower floors and rental housing at upper floors Distribution center and supermarket Retail stores at lower floors and offices at upper floors Property adjacent to the portfolio properties Large-scale mixed-use property 3 Enhance tenant relationships Utilize relationships with existing tenants beyond the borders of uses • Plan Attraction of retail tenants to office properties Attraction of office tenants to retail properties for showrooming use 4 Keep up with changes in needs for offices Change in the role of offices from a place for work to a place for interaction Differentiate with an ability to attract people, cultivated in retail property management • Plan Introduction of retailer tenants that can raise value of office buildings Renewal of common areas for easier gathering and interaction 15#17Expand Investment Universe Enables sustainable external growth in accordance with environment changes DIID Before merger Urban Offices Offices Offices in urban areas Commuter-town Offices Retail Properties Prime area Major stations Residential Station Mixed-use Properties Others Hotels in urban areas Post-merger Promote acquisition of offices in favorable location and high building specifications Examine satellite offices as a new target. However, the target will be limited to those that can also be used as retail space for a while Facing high street Urban retail properties Residential Station Located on main streets in major retail areas Those that can be turned into mixed-use properties With supermarkets being the main tenants Office x Retail Office x Residence Residence x Retail Complex for three or more uses Rental houses in urban areas Hotels in urban areas Located within 30-minute from key business areas and within 10-minute walk from the nearest station Limited to those with fixed rent, in favorable location and highly versatile New categories 16#18Create the Largest J-REIT Benefitting from advantages of larger asset size Asset Size of J-REITS (based on (anticipated) acquisition price) (1) (bn yen) Advantages of larger asset size 1,191.5 1,132.7 1,053.2 1,031.0 877.2 745.6 696.1 678.9 New Nippon Japan Real Nomura Japan Retail Daiwa Nippon ORIX JREIT Investment Building Estate Corporation Fund Real Estate Master Fund Fund House REIT Prologis REIT *Please refer to page 42 for the notes to this page. 282.7 MCUBS MidCity Portfolio diversification Enhance stability through diversification of properties, tenants and property uses More flexibility in investment management Enhance growth opportunities through increasing investment management options Higher presence in capital market Increase liquidity of the investment units and exposures in major indices 17#193. Growth Strategy (Note) The growth strategy is a plan as of the date of this document and it is not guaranteed that such plan will be achieved.#20Short-to-Mid Term: Build Base for Growth and Improve Profitability Aim to raise the level of DPU by implementing growth strategies Aim to further 4 Reduction in debt cost ➤ Scheduled refinancing amount for the five fiscal periods after the Merger: 120.5bn yen/ Average debt cost(¹): 1.1% ➤ Latest debt financing of the surviving corporation (JRF): Borrowing term of 10 years debt cost of 0.4% raise the level of DPU 3 Distribution of disposition gains *Please refer to page 42 for the notes to this page. 1 Monetize unrealized gains Unrealized gains on suburban retail properties(2): 25.8bn yen Acquisition with 2 cash on hand and borrowings Utilize cash on hand of approx. 30bn yen Remaining borrowing capacity of approx. 25bn yen to reach LTV of 45%(3) Asset replacement Improve NOI yield after depreciation 19#21Asset Replacement Further shift into urban properties and diversify asset type Assets to be Acquired Assets to be Sold Office x Retail Office x Residence Residence x Retail Mixed-use Properties 3 or more purposes Asset Replacement Post-merger Portfolio (1) Others(2) 1% Suburban Mixed-use Urban offices Retail Offices 12% Commuter-town offices 20% Office 16% Rental houses in urban Residence areas Urban Retail 51% Retail Properties Others • Facing high street Urban retail properties Residential Station Hotels in urban areas New categories Suburban Retail Properties • Properties with inferior location/profitability that fall under the categories of sub assets and secondary core assets of JRF Urban Retail Properties with Low Profitability . Properties with low profitability that are unlikely to improve in the future Properties that may be offered in exchange for other properties which requires replacement property to be proposed (1) It is based on (anticipated) acquisition price of the New Investment Corporation. (2) Hotel assets are classified into this category. In addition, residential and other new types of assets are classified into this category although that none of them are owned at present. 20 20#22External Growth Aim to achieve sustainable external growth utilizing own network and sponsor support Past Track Record Average annual acquisition amount in the past 5 years(1) 69.9bn yen/year Current Pipeline Preferential negotiation right (2) Approx. 30bn yen • Mixed-use Approx. 20bn yen Retail Approx. 9bn yen External Growth Opportunities Going Forward(3) Greater potential for external growth by expanding investment universe and opportunities to utilize sponsor support New opportunities from expanded investment universe • Bulk sale of multiple type assets • JRF MMI 39.1bn yen/year 30.8bn yen/year Acquisition based on own network in the past 5 years 74% (acquisition price basis) Deals in consideration (2) Approx. 340bn yen Based on own network Sponsor support *Please refer to page 42 for the notes to this page. . Mixed-use and residential properties Further use of sponsor support Use of Mitsubishi Corporation Group's capabilities of complex urban development (4) Examples of past complex development of Mitsubishi Corp. Redevelopment of east side of Shinagawa Station Redevelopment of Tennozu District Development capabilities of Mitsubishi Corporation Urban Development Consideration of development of large- scale mixed-use property Consideration of development of a new asset category such as Retail X Arena UBS Asset Management has extensive experience and track record in residential and mixed-use assets globally including Japan, with 75,000 residential units valued at ca. USD 25 billion (5) ⚫ Office 74% • Mixed-use Approx. 200bn yen Approx. 50bn yen 26% • ⚫ Retail Approx. 90bn yen 21 21#23Mid-to-Long Term Execute Various Growth Investments Aim to further enhance unitholder value on the basis of stable profitability External Growth Internal Growth Other Growth Growing asset size/ revenues through acquisitions Acquisition with a plan of reconstruction/ conversion etc. Participation in development opportunities Exploring new asset categories • Improvement of profitability through renewal and conversion Reconstruction/ redevelopment with assets kept on balance sheet Differentiation by space-designing capabilities Initiatives within 5% of portfolio (Consideration of equity investment or mezzanine loan investment) Utilization of IT Seeking for M&A opportunities Future Vision: Create virtuous cycle where area value and asset value improve together 22#244. Financial Strategy#25Financial Strategy Aim to reduce debt cost by maintaining the strong balance sheet Post-merger Financial Indicators Credit ratings Aim to maintain/improve JRF:AA-(R&I) MMI:AA-(JCR) Commitment Line LTV(1) Average debt cost (2) Average loan term remaining (3) Long-term borrowing ratio (4) Fixed-interest ratio Book value 43.9% 0.80% Appraisal value 38.8% 4.6 years 98.7% 91.6% Maximum amount Contract period Longest borrowing period Lender 1 50bn yen 3 years 5 years MUFG Bank, Ltd., Sumitomo Mitsui Trust Bank, Ltd., Mizuho Bank, Ltd. (2 10bn yen 2 years 3 years Sumitomo Mitsui Banking Corporation (3) 15bn yen 3 years 3 years MUFG Bank, Ltd., Sumitomo Mitsui Trust Bank, Ltd., Mizuho Bank, Ltd. JRF • MMI Total:75bn yen Largest amount in the J-REITS (5) (As of end of July 2020) Aug. 2021 Period Feb. 2022 Aug. 2022 (39th) Total Amount 30,250mn yen Avg. term Avg. debt cost (6) 7.2 years 0.99% Period (40th) 21,000mn yen 7.9 years Period (41st) 27,900mn yen 7.6 years Feb. 2023 Period (42nd) 14,500mn yen 8.4 years Borrowing to be Refinanced for the Post-merger Five Fiscal Periods (Long-term Fixed and Investment Corporation Bond Only) Latest Debt Financing of the Surviving Corporation, JRF (Jul. 2020) Aug. 2023 Period (43rd) Total/ Average 26,900mn yen 120,550mn yen Amount 4.3bn yen 7.4 years 7.6 years Borrowing term 10 years 1.11% 1.04% 1.06% 0.90% 1.01% Debt cost (7) 0.38% *Please refer to page 42 for the notes to this page. 24#26Return to Unitholders Reserves will be used for maintaining stable DPU Post-merger Reserve Negative goodwill as of August 26 (pro forma) (1) 45,107mn yen Post-merger reserve (pro forma) <Breakdown> 49,653mn yen Post-merger Asset Management Fee Structure The asset management fee structure of the surviving corporation (JRF) will be used Retained earnings for temporary difference adjustment (pro forma) Reserves of JRF, surviving corporation Post-merger reserve (pro forma) 43,750mn yen 5,902mn yen 49,653mn yen Policy to utilize the reserve To be used for stabilization of the DPU level Regular reversal of retained earnings for temporary difference adjustment (50 years, 100 fiscal periods) Makeup for temporary revenue decrease due to changes in external circumstances Makeup for temporary revenue decrease due to an exit of large-lot tenant Makeup for temporary revenue decrease due to asset replacement in which asset sale precedes acquisition Makeup for revenue decrease along with reconstruction, conversion and renewal Fee Structure of the Surviving Corporation (JRF) Asset Management Fee I Asset Management Fee II Gross Asset Value X 0.45% (per annum) Total Distribution X 5.65% Acquisition Fee Acquisition Value X 0.8% Disposition value × 0.6% Disposition Fee Merger Fee *No Disposition Fee shall be paid in the case of a capital loss from disposition Appraisal value of assets received at merger X up to 2.0% (1) This is an estimate based on the investment unit price of JRF as of August 26, 2020 and the appraisal value of the properties in MMI's portfolio as of June 30, 2020 (the end of 28th Period) (market value as of the same date with regard to silent partnership interest). 25 25#275. Post-Merger Financial Forecast#28Forecast of Post-merger Operating Results Aug. 2021 Period (39th) (Forecast) Operating revenue 39,689 mn yen Operating expenses 23,025 mn yen Temporary expenses related to merger (1) 1,357 mn yen Memo Takes into account the delay in leasing activities caused by COVID-19 Decrease in depreciation and SG&A of MMI due to the Merger Merger fee of 1,000 million yen, Merger cost of 357 million yen (NOI: excluding gain on sales of property) Operating income 28,027 mn yen 16,663 mn yen Non-operating revenues Non-operating expenses Ordinary income Extraordinary income Net income Allocation to reserve Reversal of reserve mn yen 2,073 mn yen 14,590 mn yen Decrease in cost related to financing, etc. of MMI due to the Merger 45,107 mn yen Gain on negative goodwill in association with the Merger 59,697 mn yen 43,750 mn yen 31 mn yen Addition to reserve of gain on negative goodwill excluding temporary cost in association with the Merger Amortization of existing reserve for temporary difference adjustments of JRF on a straight-line basis Total distribution Units outstanding 15,977 mn yen 6,989,091 units Distribution per unit Capital expenditure Repair cost Total Depreciation 2,286 yen 4,269 mn yen 946 mn yen 5,216 mn yen 6,502 mn yen (1) This is the total of merger fees payable to the Asset Manager and expenses related to the Merger including financial advisory fee and other advisory fees payable to professional advisors; the same shall apply hereinafter. 27 27#29Appendix#30Asset Manager Mitsubishi Corp.-UBS Realty Inc. Mission and Vision Mission "Always create new values, for people, the community and the world" Through real estate investment management, we create new demands in our society and new values that exceed people's expectations Vision We strive to be the leading group of professionals, trusted by people, the community and the world Track Record 18 years of experience in operating J-REITS Post-merger Structure Sponsor Asset Manager Mitsubishi Corporation UBS Think bold today for abrighter MC-UBS New Division Mitsubishi Corp.-UBS Realty Inc. Industrial Division Investment Corporation Japan Metropolitan Fund Investment Corporation Support metropolitan life in Japan Industrial & Infrastructure Fund Investment Corporation Support Japanese industries Board Members President & CEO & Representative Director Deputy President & Representative Director Director (full-time) Director (part-time) Director (part-time) Director (part-time) Director (part-time) Katsuji Okamoto Naoki Suzuki Tadatsugu Matsutani Naoshi Ogikubo Katsuhisa Sakai Joe Azelby Keiichi Miki Graham Mackie Operating 3 REITS Largest J-REIT AUM of 1.4tn yen (1) One of the largest buyers of commercial real estate in Japan Director (part-time) (1) This is the sum of the acquisition prices of the three investment corporations managed by the asset manager as of the end of July 2020. 29 29#31Forecast of Operating Results Before Merger (JRF) Operating revenue Aug. 2020 Period (37th) (Forecast) (1) 30,617 mn yen 1,787 mn yen 17,154 mn yen 198 mn yen Feb. 2021 Period (38th) (Forecast) 29,823 mn yen - mn yen 17,475 mn yen 73 mn yen 20,928 mn yen 12,348 mn yen Gain on sales of property Operating expenses Of which temporary expenses related to merger (NOI: excluding gain on sales of property) 20,443 mn yen Operating income 13,462 mn yen Non-operating revenues mn yen 1,716 mn yen 11,746 mn yen 10,699 mn yen - mn yen Non-operating expenses Ordinary income Extraordinary income Net income Allocation to reserve Reversal of reserve Total distribution Units outstanding Distribution per unit Capital expenditure Repair expenses Total Depreciation 11,746 mn yen 66 mn yen 31 mn yen 11,711 mn yen 2,602,483 units 4,500 yen 2,853 mn yen - mn yen 1,648 mn yen - mn yen 10,698 mn yen - mn yen 1,012 mn yen 11,711 mn yen 2,602,483 units Period-on-period change -793 mn yen -1,787 mn yen +321 mn yen -125 mn yen +485 mn yen -1,114 mn yen - mn yen -67 mn yen -1,047 mn yen - mn yen -1,047 mn yen -66 mn yen +981 mn yen mn yen - units - yen -489 mn yen 4,500 yen 2,363 mn yen +84 mn yen 500 mn yen 585 mn yen 3,354 mn yen 2,949 mn yen -405 mn yen -15 mn yen 5,455 mn yen 5,439 mn yen (1) Calculated by adding temporary expense related to the Merger to the forecast announced on August 7, 2020. 30 30#32Results and Forecast of Operating Results Before Merger (MMI) Operating revenue Operating expenses (NOI: excluding gain on sales of property) Operating income Non-operating revenues Non-operating expenses Of which temporary expenses related to merger Ordinary income Extraordinary income Extraordinary loss Net income Allocation to reserve Reversal of reserve Total distribution Units outstanding Distribution per unit (29th: Merger consideration per unit) Capital expenditure Repair expenses Total Depreciation (1) Based on the assumption of 8-month business period from July 1, 2020 to February 28, 2021. Jun. 2020 Period (28th) (Actual) 9,061 mn yen 4,785 mn yen 6,318 mn yen 4,276 mn yen 3 mn yen 619 mn yen - mn yen 3,660 mn yen 10 mn yen 10 mn yen 3,657 mn yen mn yen mn yen 3,657 mn yen 1,784,125 units 2,049 yen 1,002 mn yen 300 mn yen 1,303 mn yen 1,267 mn yen Feb. 2021 Period (29th) (Forecast)(1) 12,233 mn yen 6,910 mn yen 8,162 mn yen 5,322 mn yen - mn yen 941 mn yen 142 mn yen 4,380 mn yen - mn yen mn yen 4,379 mn yen - mn yen 998 mn yen 5,377 mn yen 1,784,125 units 3,014 yen 1,433 mn yen 571 mn yen 2,004 mn yen 1,760 mn yen 31#33Structure of the Merged Investment Corporation Asset Manager Mitsubishi Corp.-UBS Realty Inc. Investment Corporation (a) Japan Metropolitan Fund Asset Custodian/ General Administrator/ Special Accounts Administrator Investment Corporation (b) Mitsubishi UFJ Trust and General Meeting of Unitholders Banking Corporation (51% Owned) Specified Affiliated Company (Parent Company of the Asset Manager) Mitsubishi Corporation Board of Directors Executive Director: Name of contracts General Operations Agent of Investment Corporation Bond Shuichi Namba Supervisory Director: (c) MUFG Bank, Ltd. Mizuho Bank, Ltd. Masahiko Nishida Supervisory Director: Masaharu Usuki Independent Auditor PricewaterhouseCoopers Arata LLC Tax Administrator (d) PwC Tax Japan (a) Asset Management Agreement/ Trademark License Agreement (b) Asset Custodian Contract/ General Administrative Services Agreement/Account Administrative Service Agreement/ Special Accounts Administration Agreement (c) Fiscal Agency Agreement/ Administrative Services Agreement Related to Principal and Interest Payment (d) Tax Service Agreement 32#34Overview of the Two Investment Corporations Representative (Executive director) Supervisory director Japan Retail Fund Investment Corporation (JRF) MCUBS MidCity Investment Corporation (MMI) Shuichi Namba Masahiko Nishida Masaharu Usuki Katsuhiro Tsuchiya Haruo Kitamura Osamu Ito Kyoko Nagata 3227 TSE code Date of fund listing Fiscal period Units outstanding(1) Total equity(1) Asset Manager Asset custodian Unitholder registry administrator General administrator of accounting, etc. General operations agent of Investment Corporation bond 8953 March 12, 2002 August 29, 2006 Six months ending in February and August Six months ending in June and December 2,618,017 units 411,878 mn yen Mitsubishi Corp.-UBS Realty Inc. Mitsubishi UFJ Trust and Banking Corporation Mitsubishi UFJ Trust and Banking Corporation Mitsubishi UFJ Trust and Banking Corporation MUFG Bank, Ltd. 1,784,125 units 151,540 mn yen Mitsubishi Corp.-UBS Realty Inc. Sumitomo Mitsui Trust Bank, Ltd. Mitsubishi UFJ Trust and Banking Corporation Sumitomo Mitsui Trust Bank, Ltd. Mizuho Bank, Ltd. (1) The figures are as of the end of the most recent fiscal period. 33#35Progress and Growth of the Two Investment Corporations (JRF) (bn yen) 1,000 800 Expand asset size, with a focus on suburban-type ML properties Strengthen the balance sheet Merger Resume external growth 600 Asset size (based on 400 acquisition price) 200 0 2002 || 2003 2004 Distribution per unit(1) (yen) 5,000 4,000 3,000 2,000 1,000 | 2005 | 2006 0 2002 || 2003 2004 | 2005 | 2006 | 2007 2008 | 2009 | 2010 2011 2007 || 2008 | 2009 | 2010 Shifting focus on urban properties Acquisition of urban properties and disposition of suburban properties Feb. 2020 Period (36th) 877.2 bn yen 2012 | 2013 | 2014 | 2015 | 2016 2017 | 2018 | 2019 | | 2020 (year) Feb. 2020 Period (36th) 4,500 yen | 2011 2012 | 2013 | 2014 | 2015 | 2016 2017 (1) JRF implemented a four-for-one unit split on March 1, 2010, the figures from the Aug. 2002 (1st) Period to the Feb. 2010 (16th) Period are calculated by dividing the actual amount of distribution by four respectively. | 2018 | 2019 2020 (year) 34#36Progress and Growth of the Two Investment Corporations (MMI) (bn yen) 300 Asset size(1) 200 (based on acquisition price) 100 Distribution per unit(2) Before participation of MC-UBS Group as a sponsor External growth via focused investment in three metropolitan areas and four public offerings Improvement of portfolio profitability through internal growth, strengthening financial soundness and strategic asset replacement Participation of MC-UBS Group as a sponsor Jun. 2020 Period (28th) 282.7 bn yen III 0 2006 2014 2015 2016 | 2017 2018 2019 2020 (year) (yen) 3,000 2,000 1,000 0 2006 Participation of MC-UBS Group as a sponsor 2014 | 2015 2016 Gain on sales of property etc. Jun. 2020 Period (28th) 2,049 yen 2017 2018 2019 2020 (year) (1) Excluding the equity interest in a silent partnership (tokumei kumiai), the underlying asset of which is Nagoya Lucent Tower. (2) As MMI implemented a five-for-one unit split on January 1, 2018, the figures from the Aug. 2002 (1st) Period to the Dec. 2017 (23rd) Period are calculated by dividing the actual amount of distribution by five respectively. 35#37Portfolio List Japan Retail Fund Investment Corporation Area Property Name Location (Anticipated) Acquisition Price (million yen) Investment Investment Leasable Space Occupancy Ratio (pro forma) (m²)(1) Rate (1) No. of Tenants (¹) Area Property Name Location (Anticipated) Acquisition Price (million yen) Ratio Leasable Space Occupancy (m²)(1) (pro forma) Rate (¹) No. of Tenants (¹) Core Core G-Bldg. Minami Aoyama 02 G-Bldg. Daikanyama 01 GYRE (2) Minato-ku, Tokyo 5,350 0.4% 1,529.15 Shibuya-ku, Tokyo 1,235 0.1% 599.79 100.0% 100.0% 4 1 Machinoma Omori G-Bldg. Daikanyama 02 Ota-ku, Tokyo 9,100 0.8% Shibuya-ku, Tokyo 3,600 0.3% 8,963.39 2,166.69 95.9% 79.4% 36 8 Shibuya-ku, Tokyo 22,712 1.9% 4,828.12 100.0% 15 Abiko Shopping Plaza Abiko-shi, Chiba 10,322 0.9% 41,293.90 100.0% 58 Bic Camera Tachikawa G-Bldg. Kita Aoyama 01 G-Bldg. Jiyugaoka 01 Cheers Ginza G-Bldg. Jingumae 06 G-Bldg. Jingumae 01 G-Bldg. Jingumae 02 Tachikawa-shi, Tokyo 11,920 1.0% 20,983.43 100.0% 2 Ito-Yokado Yabashira Matsudo-shi, Chiba 1,616 0.1% 21,308.78 100.0% 1 Minato-ku, Tokyo 989 0.1% 492.69 100.0% 2 Ito-Yokado Tsunashima Yokohama-shi, Kanagawa 5,000 0.4% 16,549.50 100.0% 1 Tokyo Meguro-ku, Tokyo 3,093 0.3% 2,274.60 59.7% 2 AEON Itabashi Shopping Center Itabashi-ku, Tokyo 12,411 1.0% 72,748.34 100.0% 1 area Chuo-ku, Tokyo 4,200 0.4% 1,686.58 100.0% 10 SEIYU Hibarigaoka Nishi Tokyo-shi, Tokyo 6,100 0.5% 19,070.88 100.0% 1 Shibuya-ku, Tokyo 2,360 0.2% 670.42 100.0% 4 Round1 Machida Machida-shi, Tokyo 2,450 0.2% 6,801.89 100.0% 1 Shibuya-ku, Tokyo 3,400 0.3% 555.75 100.0% 2 Round 1 Stadium Itabashi Itabashi-ku, Tokyo 2,400 0.2% 14,828.74 100.0% 1 Shibuya-ku, Tokyo 2,233 0.2% 426.29 100.0% 3 Summit Store Nakano Minamidai Nakano-ku, Tokyo 3,100 0.3% 3,536.50 100.0% 1 G-Bldg. Minami Aoyama 01 Minato-ku, Tokyo 10,085 0.8% 1,592.90 100.0% 3 Colline Bajikouen Setagaya-ku, Tokyo 3,100 0.3% 5,368.02 100.0% 10 La Porte Aoyama G-Bldg. Shinjuku 01 Shibuya-ku, Tokyo 9,400 0.8% 4,158.53 96.9% 23 Kawaramachi OPA Kyoto-shi, Kyoto 18,500 1.6% 18,848.20 100.0% 1 Shinjyuku-ku, Tokyo 6,600 0.6% 1,093.67 100.0% 1 G-Bldg. Shinsaibashi 01 Osaka-shi, Osaka 1,582 0.1% 886.46 100.0% 2 G-Bldg. Jingumae 03 Shibuya-ku, Tokyo 5,520 0.5% 1,676.87 100.0% 8 G-Bldg. Minami Ikebukuro 01 Toshima-ku, Tokyo 5,800 0.5% 5,066.06 Urban Terrace Jingumae Shibuya-ku, Tokyo 2,797 0.2% 1,719.19 100.0% 100.0% 8 2 Round 1 Stadium Sennichimae (Land with leasehold interest) G-Bldg. Shinsaibashi 02 Osaka-shi, Osaka 8,000 0.7% 1,711.63 100.0% 1 Osaka-shi, Osaka 4,380 0.4% 948.72 100.0% 1 Round1 Kyoto Kawaramachi Kyoto-shi, Kyoto 2,800 0.2% 8,821.66 100.0% 1 Arkangel Daikanyama Meguro-ku 1,000 0.1% 904.04 100.0% 1 (Land with leasehold interest) G-Bldg. Omotesando 01 (Shibuya-ku), Tokyo G-Bldg. Shinsaibashi 03 Osaka-shi, Osaka 30,500 2.6% 5,319.29 100.0% 4 Shibuya-ku, Tokyo 5,850 0.5% 1,508.03 Tokyo Round 1 Yokohama Station West Yokohama-shi, Kanagawa 3,930 0.3% 6,560.09 100.0% 100.0% 1 EDION Kyobashi Osaka-shi, Osaka 5,640 0.5% 4,307.16 100.0% 1 (Land with leasehold interest) 1 area G-Bldg. Sangenjaya 01 Setagaya-ku, Tokyo 3,725 0.3% 3,471.52 100.0% 3 G-Bldg. Abeno 01 Osaka-shi, Osaka 4,285 0.4% 4,757.35 100.0% 10 G-Bldg. Ginza 01 Chuo-ku, Tokyo 5,500 0.5% 1,610.54 100.0% 6 G-Bldg. Umeda 01 Osaka-shi, Osaka 9,483 0.8% 3,529.51 100.0% 12 KAWASAKI Le FRONT G-Bldg. Shibuya 01 Kawasaki-shi, Kanagawa 30,000 2.5% 49,222.44 100.0% 67 G-Bldg. Shinsaibashi 04 Osaka-shi, Osaka 3,170 0.3% 1,610.63 100.0% 5 Shibuya-ku, Tokyo 3,230 0.3% 1,630.03 100.0% 2 area G-Bldg. Omotesando 02 Shibuya-ku, Tokyo 17,705 1.5% 5,555.65 100.0% 6 Osaka G-Bldg. Kyoto Kawaramachi 01 G-Bldg. Midosuji 01 Kyoto-shi, Kyoto 2,180 0.2% 2,398.34 100.0% 4 Osaka-shi, Osaka 9,975 0.8% 2,446.00 100.0% 2 G-Bldg. Kichijoji 01 CUTE CUBE HARAJUKU G-Bldg. Ueno 01 G-Bldg. Akihabara 01 G-Bldg. Akihabara 02 G-Bldg. Kichijoji 02 Musashino-shi, Tokyo 3,460 0.3% 1,718.21 100.0% 1 Shibuya-ku, Tokyo 8,520 0.7% 1,428.55 100.0% 10 Taito-ku, Tokyo 3,320 0.3% 1,471.80 100.0% 1 Round 1 Sannomiya Station G-Bldg. Kobe Sannomiya 01 G-Bldg. Midosuji 02 Kobe-shi, Hyogo 3,200 0.3% 10,054.52 100.0% 1 Kobe-shi, Hyogo 3,000 0.3% 3,750.38 100.0% 5 Osaka-shi, Osaka 15,000 1.3% 1,428.28 100.0% 1 G-Bldg.Takadanobaba 01 Shinjyuku-ku, Tokyo 5,945 0.5% 3,569.20 100.0% 13 Kyoto Family Kyoto-shi, Kyoto 5,340 0.4% 19,639.09 100.0% 63 Chiyoda-ku, Tokyo 4,980 0.4% 2,701.99 100.0% 1 AEON MALL Tsurumi Ryokuchi AEON MALL Itami Osaka-shi, Osaka 29,902 2.5% 138,538.63 100.0% 1 Chiyoda-ku, Tokyo 2,500 0.2% 1,037.33 100.0% 1 Itami-shi, Hyogo 21,488 1.8% 157,904.26 100.0% 1 Musashino-shi, Tokyo 15,300 1.3% 8,838.79 100.0% 1 Life Shimodera Osaka-shi, Osaka 1,683 0.1% 4,344.18 100.0% 1 G-Bldg. Ginza Chuo-Dori 01 Chuo-ku, Tokyo 13,000 1.1% 3,141.07 100.0% 9 MARINE & WALK YOKOHAMA G-Bldg. Jingumae 07 Yokohama-shi, Kanagawa 11,300 0.9% 8,347.69 98.5% 25 (Land with leasehold interest) Life Taiheiji Higashi Osaka-shi, Osaka 1,282 0.1% 3,898.01 100.0% 1 Shibuya-ku, Tokyo 1,950 0.2% G-Bldg. Minami Aoyama 03 Minato-ku, Tokyo 12,200 1.0% G-Bldg. Jingumae 08 Shibuya-ku, Tokyo 2,490 0.2% 373.12 1,373.46 802.40 100.0% 1 (Land with leasehold interest) KAMISHIN PLAZA Osaka-shi, Osaka 3,900 0.3% 74.7% 5 m-city Toyonaka Toyonaka-shi, Osaka 5,570 0.5% 12,008.81 33,301.93 89.0% 100.0% 38 1 100.0% 3 Round 1 Stadium Kawasaki Daishi G-Bldg. Jingumae 09 Kawasaki-shi, Kanagawa 2,370 0.2% 13,559.17 100.0% 1 Shibuya-ku, Tokyo 7,000 0.6% 1,127.06 85.3% 5 (1) For "Leasable Space", "Occupancy Rate" and "No. of Tenants", the figures are as of the end of June, 2020. (2) For "GYRE”, its acquisition price includes the initially-held land with leasehold and the property additionally acquired. 36#38Portfolio List Japan Retail Fund Investment Corporation MCUBS MidCity Investment Corporation Area Property Name Location (Anticipated) Acquisition Price (million yen) Investment Investment Leasable Space Occupancy Ratio (m²)(1) Rate (1) No. of Tenants (¹) Area Property Name Location Appraisal Value (million yen) Leasable Space Occupancy (pro forma) Ratio (pro forma) (m²)(1) Rate (¹) No. of Tenants (¹) Core G-Bldg. Nagoya Sakae 01 Nagoya-shi, Aichi 1,900 0.2% 794.02 24.8% 1 AEON Yagoto Nagoya-shi, Aichi 3,698 0.3% 63,702.48 100.0% 1 Nagoya mozo wonder city Nagoya-shi, Aichi 55,480 4.7% 86,526.78 100.0% 219 area Sumitomo Fudosan Ueno Bldg. No. 6 Taito-ku, Tokyo G-Square Shibuya Dogenzaka Shibuya Sakuragaoka Square Yokohama Creation Square 8,690 0.7% 6,858.16 100.0% 2 Shibuya-ku, Tokyo 17,000 1.4% 5,051.06 100.0% 9 Shibuya-ku, Tokyo 19,700 1.7% 6,379.66 100.0% 4 Kanagawa-ku, Yokohama 8,250 0.7% 12,704.18 99.2% 43 Valor Kachigawa Kasugai-shi, Aichi 6,350 0.5% 20,509.10 100.0% 1 (Land with leasehold interest) Round1 Hiroshima Cube Kawasaki Kawasaki-ku, Kawasaki 23,600 2.0% 24,494.06 100.0% 10 Hiroshima-shi, Hiroshima 2,970 0.2% 9,890.63 100.0% 1 Higashi-Nihombashi Green Bldg. Chuo-ku, Tokyo 3,200 0.3% 3,254.77 100.0% 7 Others DFS T GALLERIA OKINAWA G-Bldg. Sendai Ichibancho 01 G-Bldg. Naha-shintoshin 01 G-Bldg. Tenjin Nishi-dori 01 G-Bldg. Tenjin Nishi-dori 02 (3) Naha-shi, Okinawa 15,600 1.3% 42,088.14 100.0% 1 Sasazuka Center Bldg. Shibuya-ku, Tokyo 9,310 0.8% 8,240.30 100.0% 9 Sendai-shi, Miyagi Naha-shi, Okinawa 4,320 0.4% 2,387.17 100.0% 1 Tokyo USC Bldg. Koto-ku, Tokyo 11,500 1.0% 12,487.73 93.9% 9 5,650 0.5% Not disclosed (2) 100.0% 2 area Yoshiyasu Kanda Bldg. Chiyoda-ku, Tokyo 4,250 0.4% 3,149.39 100.0% 7 Fukuoka-shi, Fukuoka 4,850 0.4% 2,667.42 88.8% 7 Fukuoka-shi, Fukuoka 5,000 0.4% 1,496.56 100.0% 1 AEON Naha Shopping Center AEON MALL Sapporo Hassamu Secondary core Naha-shi, Okinawa Sapporo-shi, Hokkaido 10,830 0.9% 18,818 1.6% 79,090.48 102,162.16 100.0% 1 TOYOTA MOBILITY SERVICE Bldg. M-City Akasaka 1-chome Bldg. Yokohama i-land Tower Chuo-ku, Tokyo 10,400 0.9% 6,123.81 100.0% 1 Minato-ku, Tokyo 4,470 0.4% 2,550.44 100.0% 12 Naka-ku, Yokohama 100.0% 23,900 2.0% 1 25,460.50 100.0% 7 Tokyo AEON MALL Musashi Murayama Musashimurayama-shi, Tokyo 30,600 2.6% area Osaka area m-city Kashiwa Ario Otori AEON MALL Kobe Kita Kashiwa-shi, Chiba 5,520 0.5% Sakai-shi, Osaka 19,040 1.6% Kobe-shi, Hyogo 10,920 0.9% 137,466.97 20,437.36 95,135.36 128,050.62 Nara Family Nara-shi, Nara 34,875 2.9% 82,927.89 100.0% 100.0% 100.0% 100.0% 99.2% 1 M-City Edogawabashi Bldg. East Square Tokyo Bunkyo-ku, Tokyo 4,240 0.4% 3,472.70 100.0% 2 Koto-ku, Tokyo 9,760 0.8% 12,208.42 77.5% 12 1 AEON MALL Tsudanuma Narashino-shi, Chiba 29,000 2.4% 101,210.44 100.0% 1 1 1 Hotel Vista Premio Tokyo Twin 21 Minato-ku, Tokyo 11,000 0.9% 4,236.46 100.0% 2 Chuo-ku, Osaka 60,300 5.1% 82,304.82 98.0% 103 113 MID Imabashi Bldg. Chuo-ku, Osaka 2,670 0.2% 4,277.63 100.0% 21 Others Oyama Yuen Harvest Walk Oyama-shi, Tochigi 10,709 0.9% 59,535.10 98.5% 65 Tecc Land Fukuoka Shime Honten Kasuya-gun, Fukuoka 4,150 0.3% Not disclosed (2) 100.0% 1 Kitahama MID Bldg. Chuo-ku, Osaka 11,500 1.0% 10,189.49 100.0% 10 Sub Osaka area MID Nishihommachi Bldg. Nishi-ku, Osaka 2,600 0.2% 3,881.74 100.0% 18 AEON MALL Yamato Yamato-shi, Kanagawa 16,823 1.4% Tokyo Higashi-Totsuka Aurora City Yokohama-shi, Kanagawa 50,500 4.2% area Ito-Yokado Yotsukaido Yotsukaido-shi, Chiba 13,744 1.2% 85,226.68 109,355.90 59,762.30 100.0% 100.0% 100.0% 1 Higobashi MID Bldg. Nishi-ku, Osaka 4,400 0.4% 4,655.57 100.0% 12 5 Osaka YM Bldg. Fukushima-ku, Osaka 8,180 0.7% 9,952.88 100.0% 28 2 Konami Sports Club Kyobashi Miyakojima-ku, Osaka 3,430 0.3% 9,586.26 100.0% 1 Makuhari Plaza Chiba-shi, Chiba 5,700 0.5% 24,505.37 100.0% 5 Sendai Capital Tower Aoba-ku, Sendai 6,800 0.6% AEON Takatsuki Life Kishibe Takatsuki-shi, Osaka 11,700 1.0% 77,267.23 100.0% 1 Others Dormy Inn Hakata Gion Hakata-ku, Fukuoka 4,560 0.4% 12,999.80 5,554.91 95.2% 75 100.0% 2 Suita-shi, Osaka 1,910 0.2% 5,516.61 100.0% 1 (Land with leasehold interest) Osaka Izumisano Shofudai MMI Total/Average 25 Properties 302,710 381,285.18 98.5% 407 Izumisano-shi, Osaka 2,625 0.2% 44,009.52 100.0% 2 area (Land with leasehold interest) Round1 Stadium Sakai Chuo Kanjyo Sakai-shi, Osaka 1,750 0.1% 17,521.46 pivo Izumi Chuo Izumi-shi, Osaka 6,000 0.5% 21,182.94 100.0% 100.0% 1 Area Property Name 17 Location Acquisition Price (million yen) Silent partnership interest related to office building Round1 Stadium Takatsuki Takatsuki-shi, Osaka 2,080 0.2% 19,767.64 100.0% 1 Nagoya AEON MALL Sapporo Naebo Sapporo-shi, Hokkaido 9,260 0.8% Others MrMax Nagasaki Nagasaki-shi, Nagasaki 2,475 0.2% 74,625.52 12,115.09 100.0% 100.0% 1 Nagoya Lucent Tower Nishi-ku, Nagoya 4,919 area 2 JRF Total/Average 102 Properties 888,884 2,308,120.39 99.7% 989 (1) For "Leasable Space", "Occupancy Rate", "No. of Tenants" and "Appraisal Value", the figures are as of the end of June, 2020. (2) Not disclosed because consent from tenants has not been obtained. (3) To be acquired on August 31, 2020. 37#39Post-merger Financial Data Overview of Borrowings (as of Aug. 28, 2020) Maturity Ladder Balance (1) (mn yen) Average borrowing term(2) Average (as of Aug. 28, 2020) Average debt (mn yen) remaining cost(2) 80,000 Commitment line: 75.0bn yen period (2) 70,000 Short-term 7,000 0.5 years 0.1 years 0.19% Short-term borrowing 60,000 Long-term 479,200 8.3 years 4.7 years 0.77% Long-term borrowing 50,000 Investment corporation bond Investment Corporation Bond 52,500 8.2 years 4.1 years 0.72% 40,000 1,500 7,000 Total 538,700 8.2 years 4.6 years 0.76% 30,000 6,000 Green bond 2,000 9,500 4,000 30,575 7,000 8,000 20,000 38,250 7,500 24,150 31,975 25,850 Status of Lenders (3) 28,500 28,800 30,800 25,700 (as of Aug. 28, 2020) 10,000 24,400 21,000 14,400 18,900 25,700 17,050 21,350 12,900 22,850 7,000 19,800 16,250 Balance 0 Lender Proportion (mn yen) 2023 MUFG Bank, Ltd. 149,217 27.7% Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. Feb. Aug. 2021 2022 2024 2025 2027 2026 2028 2029 2030 Sumitomo Mitsui Banking Corporation 68,500 12.7% Credit Ratings Sumitomo Mitsui Trust Bank, Limited 59,509 11.0% JRF (as of Aug. 28, 2020) MMI Development Bank of Japan, Inc. 57,475 10.7% Credit rating agency Issuer rating Issuer rating Mizuho Bank, Ltd. 40,400 7.5% Shinsei Bank, Limited 14,500 2.7% Rating and Investment Information, Inc. (R&I) AA- (Stable) A+ (Stable) Resona Bank, Limited 13,700 2.5% Japan Credit Rating Agency, Ltd. (JCR) AA-(4) (Stable) The Bank of Fukuoka, Ltd. 11,550 2.1% Shinkin Central Bank 10,200 1.9% S&P Global Rating (S&P) Others 51,200 9.5% Moody's Investors Service, Inc. (Moody's) A(5) (Stable) A3 (Negative) Investment corporation bond 52,500 9.7% (4) It is a long-term issuer rating. Total 538,700 100% (5) It is a long-term issuer rating. Further, JRF is also rated A-1 for a short-term issuer rating. (1) The figures are calculated by aggregating the amount of interest-bearing debt of JRF and MMI as of the date of this document. (2) The figures are calculated as weighted average based on the amount of interest-bearing debt of JRF and MMI as of the date of this document. (3) The figures are calculated based on the amount of interest-bearing debt of JRF and MMI as of the date of this document. 38#40ESG Efforts and Evaluations Award from External Parties GRESB ⚫ Both JRF and MMI have achieved the highest ranking of Green Star JRF was selected as Asia Retail Sector Leader in 2018 • JRF MMI Green Star GRES B Real Estate Assessment Green Star (5 consecutive years) (4 consecutive years) Rating Public Disclosure A A (3 consecutive years) (3 consecutive years) Efforts by the Asset Manager Introduced a sustainability committee and Chief Sustainability Officer To reinforce a system for promotion of sustainability, newly organized a "Sustainability Committee" Introduced Chief Sustainability Officer (CSO), and appointed Deputy President & Representative Director of MCUBS to the role CDP Climate Change Initiative CDP DISCLOSURE INSIGHT ACTION MSCI ESG Rating (1) • JRF is the first participant among J-REITs since 2016 JRF received a score "B", two ranks better than the previous year 2016 2017 2018 2019 Score C C C B ⚫ Both JRF and MMI are rated as AA, the highest among J-REITS JRF MMI MSCI Rating AA AA Inclusion into MSCI Japan ESG Select Leaders Index Both JRF and MMI are selected • 8 J-REITs are selected GPIF engages in passive investment tracking this index Conducted a joint ESG conference with the three REITS Conducted an ESG conference with cooperation of the three REITs that are managed by the Asset Manager Many institutional investors and sell-side analysts attended the event Message from Management: MC-UBS Published ESG Report In order to share MCUBS Group's basic idea and activities of ESG with the stakeholders, published ESG Report, which concisely covers ESG activities of the whole group ESG Report y 2020 (1) Inclusion of both of the investment corporations in the MSCI Index and their use of MSCI's logo, trademarks, service marks and indices in this document are not intended to constitute sponsorship, advertisement or sales promotion by MSCI or its affiliates for the two investment corporations. MSCI has the exclusive right to use the MSCI Index, and MSCI and the MSCI Index and its logo are trademarks and service marks of MSCI and its affiliates. The C-Crea ontibus tesolving glob 39#41ESG Approvals and Initiatives Environmental Approvals (As of August 28, 2020) DBJ Green Building DBJ Green Building Certification JRF Initiatives Supported by Asset Manager MMI Principles for Responsible Investment (PRI) Montreal Carbon Pledge Signatory of: Signatory since August 2013 Principles for Responsible Investment Signatory since September, 2015 First as J-REIT asset manager First as J-REIT asset manager EPRI United Nations Environment Programme Finance Initiative (UNEP FI) PRI MontréalPLEDGE United Nations Global Compact (UNGC) (1) Signatory since October 2016 First J-REIT as asset manager WE SUPPORT N GLOBAL COMPACT 1 property 7 properties 3 properties 7 properties 6 properties 2 properties Total 23 properties 3 properties JRF MMI Signatory since October 2016 First as J-REIT asset manager S CASBEE 16 properties UNEP FINANCE INITIATIVE A 2 properties 2 properties B+ 3 properties CASBEE For Real Estate For Wellness Office For Real Estate 18 properties 5 properties Total For Wellness Office 1 property Signatory since June 2013 Principles for Financial Action for the 21st Century PFA21 Principles for Financial Action toward a Sustainable Society (Principles for Financial Action for the 21st Century) Task Force on Climate-related Financial Disclosures (TCFD) Endorsement since TCFD August 2019 TASK FORCE O CLIMATE-RELATED FINANCIAL DISCLOSURES BELS BELS Certification JRF MMI 1 property Japan Climate Initiative 1 property 4 properties Joined since May 2020 JAPAN CLIMATE INITIATIVE Total 1 property 5 properties (1) Mitsubishi Corp.-UBS Realty Inc. has supported the Corporate Responsibility Initiative of the United Nations Global Compact and its principles in the areas of human rights, labor, environment, and anti-corruption since 2016. 40 40#42Note P.3 (1) It is based on the comparison between the total acquisition price stated in the financial information of respective investment corporations as of July 31, 2020 (as of the end of the most recent fiscal period) and the estimated value which are the sum of total acquisition price of Japan Retail Fund Investment Corporation ("JRF") as of July 31, 2020, anticipated acquisition price of the asset anticipated to be acquired which was announced in "Notice Concerning Acquisition of Trust Beneficiary Right in Real Estate in Japan (G-Bldg. Tenjin Nishi-dori 02)" dated August 26, 2020, and the appraisal values of MCUBS MidCity Investment Corporation ("MMI") as of June 30, 2020. Such value may be different from the actual asset size (based on acquisition price) of the New Investment Corporation as of the effective date of the Merger, and it is not guaranteed that the asset size of the New Investment Corporation will be the largest among J-REITS as of the effective date of the Merger. The total of appraisal values of MMI is adopted to calculate the asset size of the New Investment Corporation after the Merger, as JRF will succeed the MMI assets at market value, based on the purchase accounting method for accounting purposes. (2) The New Investment Corporation will not acquire any new industrial real estate properties which are investment target of Industrial & Infrastructure Fund Investment Corporation. The same applies hereinafter. P.5 (1) It means "as of March 12, 2002" for the number of properties and asset size, "as of the Aug. 2002 (1st) Period" for DPU, or "as of the end of the Aug. 2002 (1st) Period" for NAV per unit. (2) (3) It means (The end of) the Feb. 2020 (36th) Period for JRF and (The end of) the Jun. 2020 (28th) Period for MMI. It means the total of acquisition price. (4) As JRF implemented a four-for-one unit split on March 1, 2010, the figure as of listing (the Aug. 2002 (1st) Period), is calculated by dividing the actual figure of DPU and NAV per unit by four as the split had not taken place by that time. (5) (Net assets + Unrealized gain or loss - Total distribution (to be) paid) / Units outstanding (rounded down the figure less than 100 yen) (6) It means "as of April 22, 2015" for the number of properties and asset size, "as of the Dec. 2014 (17th) Period" for DPU or "as of the end of the Dec. 2014 (17th) Period" for NAV per unit, which are before Mitsubishi Corp.-UBS Realty Inc. acquired 65% shares in MID REIT Management Co., Ltd. It means the total of acquisition price, excluding the equity interest in a silent partnership (tokumei kumiai), the underlying asset of which is Nagoya Lucent Tower. (7) (8) As MMI implemented a five-for-one unit split on January 1, 2018, the figure before MC-UBS Group participation (the Dec. 2014 (17th) Period) is calculated by dividing the actual figure of DPU and NAV per unit by five as the split had not taken place by that time. P.6 (1) The figure is calculated by dividing the total actual or estimated annual NOI by the asset size (based on (anticipated) acquisition price). (2) The figure is calculated by subtracting actual or estimated annual depreciation from the total actual or estimated annual NOI and dividing it by the asset size (based on (anticipated) acquisition price). (3) (Net Asset + Unrealized Gain or Loss - Total Distribution (to be) Paid) / Units Outstanding (4) (5) Net Asset / Units Outstanding Estimate As of the End of August 2020 of Japan Retail Fund Investment Corporation Asset size (based on (anticipated) acquisition price): The figure is the total of acquisition price of the properties in the portfolio as of the end of Feb. 2020 (36th) Period, reflecting the acquisitions and dispositions of properties from March 1, 2020 to the date of this document, and adding the anticipated acquisition price of G-Bldg. Tenjin Nishi-dori 02, which is to be acquired as of August 31, 2020. The same shall apply hereinafter. Number of properties: The figure is the number of properties in the portfolio as of the end of Feb. 2020 (36th) Period, reflecting the acquisitions and dispositions of properties from March 1, 2020 to the date of this document, and adding G-Bldg. Tenjin Nishi-dori 02, which is to be acquired as of August 31, 2020. NOI yield: The figure is calculated by dividing the total of annualized actual NOI for the Feb. 2020 (36th) Period of the properties held in the portfolio from the end of Feb. 2020 (36th) Period to the date of this document (for KAWASAKI Le Front, estimated NOI after the renewal) and estimated annual NOI of the properties acquired or to be acquired from March 1, 2020 to August 31, 2020 as of each acquisition, by the asset size (based on (anticipated) acquisition price). NOI yield after depreciation: The figure is calculated by dividing the total of annualized figures calculated by deducting depreciation expenses for the Feb. 2020 (36th) Period from actual NOI of the properties held in the portfolio from the end of Feb. 2020 (36th) Period to the date of this document (for KAWASAKI Le Front, an estimate after the renewal) and figures calculated by deducting estimated annual depreciation expenses from estimated annual NOI of the properties acquired or to be acquired from March 1, 2020 to August 31, 2020 as of each acquisition, by the asset size (based on (anticipated) acquisition price). Unrealized gain or loss: The figure is calculated by deducting the unrealized gain or loss of the property disposed of on March 2, 2020 and then adding the figures calculated by deducting (anticipated) acquisition price from appraisal value from respective properties acquired or to be acquired from March 1, 2020 to August 31, 2020 to the unrealized gain or loss as of the end of the Feb. 2020 (36th) Period (calculated by deducting book value from appraisal value; the same shall apply hereinafter). LTV: The figure is calculated by dividing the total of interest-bearing debt as of the date of this document by the estimated total assets as of the end of the Aug. 2020 (37th) Period. Interest-bearing debt: The figure is the total of interest-bearing debt as of the date of this document. Any new borrowing or issuance of investment corporation bonds is not scheduled by August 31, 2020. Rating: indicating (long-term) issuer ratings as of the date of this document. NAV per unit: The figure is calculated by dividing the figure calculated by adding the unrealized gain or loss to the net assets as of the end of the Feb. 2020 (36th) Period, from which the total acquisition value of own investment units cancelled as of August 19, 2020 and estimated total distribution for the Aug. 2020 (37th) Period were deducted, by the total units outstanding as of the date of this document. Book value per: The figure is calculated by dividing the figure calculated by deducting the total acquisition value of own investment units cancelled as of August 19, 2020 from the net assets as of the end of the Feb. 2020 (36th) Period, by the total units outstanding as of the date of this document. (6) Estimate As of the End of June 2020 of MCUBS MidCity Investment Corporation The portfolio does not include the silent partnership interest in Nagoya Lucent Tower and the other indicators are calculated by the methods similar to those applied to JRF. (7) Assumption of New Investment Corporation (Japan Metropolitan Fund Investment Corporation) as of March 1, 2021: Asset size (based on (anticipated) acquisition price): the asset size of the portfolio of the New Investment Corporation is represented by the sum of the total of (anticipated) acquisition price of the properties in JRF's portfolio as of August 31, 2020 and the total of appraisal value of the properties in MMI's portfolio as of June 30, 2020, as JRF, an acquiring investment corporation, will succeed assets of MMI, an investment corporation being acquired, at market value, subject to the purchase accounting method. NOI yield: The figure is calculated by dividing the total of actual or estimated annual NOI by the asset size (based on (anticipated) acquisition price); the acquisition price of MMI's assets used for calculation of NOI yield of the portfolio of the New Investment Corporation are based on their appraisal value as of June 30, 2020. NOI yield after depreciation: The figure is calculated by dividing the figure calculated by deducting actual or estimated annual depreciation expenses from the total of actual or estimated annual NOI, by the asset size (based on (anticipated) acquisition price); the acquisition price of MMI's assets used for calculation of NOI yield of the portfolio of the New Investment Corporation are based on their appraisal value as of June 30, 2020. Unrealized gain or loss: unrealized gain or loss of the portfolio of the New Investment Corporation is represented by that of JRF as JRF will succeed the MMI's assets at market value. Book value per unit: For the units outstanding of the New Investment Corporation, please refer to Page 27; the net assets of the New Investment Corporation is calculated based on the appraisal value of MMI's assets as of June 30, 2020; the same shall apply hereinafter.. NAV per unit: calculated according to the following formula: (Net assets + Unrealized gain or loss - Total distribution (to be) paid) / Units outstanding. NAV per unit of the New Investment Corporation is calculated according to the following formula: (Net assets calculated under certain conditions based on the merger ratio and JRF's investment unit price as of August 26, 2020 + Unrealized gain or loss of JRF - Estimated total distribution (to be) paid) / Units outstanding. (8) It indicates a rate of an increase or a decrease in DPU of the New Investment Corporation from (estimated) DPU of the respective investment corporations before the Merger in consideration of the merger ratio and unit split. 41#43Note P.7 (1) Diversification by Area: It is based on (anticipated) acquisition price of the New Investment Corporation. Tokyo Area: Tokyo, Kanagawa, Saitama and Chiba Prefecture Osaka Area: Osaka, Kyoto and Hyogo Prefecture Nagoya Area: Aichi Prefecture (2) It is based on (anticipated) acquisition price of the New Investment Corporation. Hotel assets are classified into this category. In addition, residential and other new types of assets are classified into this category although none of them are owned at present. (3) (4) It is based on (anticipated) acquisition price of the New Investment Corporation. (5) It is based on annual rent. (6) It is based on the number of properties in the portfolio of the New Investment Corporation. (7) It is based on the weighted average of rent. P.17 (1) It is based on the total acquisition price (as of the end of the most recent fiscal period) stated in the financial information of respective investment corporations as of July 31, 2020. The asset size of the New Investment Corporation is the sum of (anticipated) total acquisition price of JRF as of July 31, 2020, anticipated acquisition price of the asset anticipated to be acquired which was announced in "Notice Concerning Acquisition of Trust Beneficiary Right in Real Estate in Japan (G-Bldg. Tenjin Nishi-dori 02)" dated August 26, 2020, and the appraisal values of MMI as of June 30, 2020 as estimated assumed value. Such value may be different from the actual asset size (based on acquisition price) of the New Investment Corporation as of the effective date of the Merger, and it is not guaranteed that the asset size of the New Investment Corporation will be the largest among J-REITS as of the effective date of the Merger. The asset size of MMI excludes the equity interest in a silent partnership (tokumei kumiai) of Nagoya Lucent Tower. P.19 (1) It is calculated by dividing the total of interest for debt and investment corporation bonds, loan-related expenses, expenses for issuance and redemption of investment corporation bonds and custodial fees of investment corporation bonds paid on interest-bearing debt and investment corporation bonds of JRF and MMI that will be due or redeemed by the end of the fifth fiscal period after the Merger, by the total interest-bearing debt of JRF and MMI that will be due by the end of the fifth fiscal period after the Merger. (2) It is the unrealized gain on the sub assets and secondary core assets of JRF as of the end of the Feb. 2020 (36th) Period. Sub-assets are GMS, roadside facilities and other assets that are not profitable to invest in. Secondary core assets are suburban malls (large shopping malls located in suburban areas) and value-add (assets with high yields and high upside potential). (3) It is an estimated amount to be borrowed if the level of book value-based LTV 43.9%, the figure calculated by dividing the total of interest-bearing debt of JRF and MMI as of the date of this document by the estimated total assets of the New Investment Corporation as of the end of the Aug. 2021 (39th) Period, is assumed to be raised to 45%. P.21 (1) The figure is the sum of annual averages of the total acquisition price from August 1, 2015 to July 31, 2020. (2) It is based on the status as of the date of this document. It is not guaranteed that the acquisitions will be realized. (3) They are plans at present. It is not guaranteed that they will be realized. (4) It describes the past track record and future plans of its development projects, over which the New Investment Corporation has not secured preferential negotiation right and it is not guaranteed that the acquisitions will be realized. (5) The New Investment Corporation has not secured any preferential negotiation right over them and no future acquisition of these properties are guaranteed. P.24 (1) Book value-based LTV is calculated by dividing the total interest-bearing debt of JRF and MMI as of the date of this document by the estimated total assets of the New Investment Corporation as of the end of the Aug. 2021 (39th) Period calculated based on the appraisal value of MMI's assets as of June 30, 2020. Market value-based LTV is calculated by dividing the total interest-bearing debt of JRF and MMI as of the date of this document by the sum of the unrealized gain or loss of the New Investment Corporation stated in Page 6 and the estimated total assets of the New Investment Corporation as of the end of Aug. 2021 (39th) Period calculated based on the appraisal value of MMI's assets as of June 30, 2020. (2) It is calculated by dividing the annual total of interest for debt and investment corporation bonds, loan-related expenses, expenses for issuance and redemption of investment corporation bonds and custodial fees of investment corporation bonds as of the date of this document, by the total interest-bearing debt of JRF and MMI as of the date of this document. The same shall apply hereinafter. (3) The figure is a weighted average of remaining loan terms based on the amount of interest-bearing debt of JRF and MMI as of the date of this document; the same shall apply hereinafter. Long-term loans and investment corporation bonds that become due within one year are included in the long-term borrowing. (4) (5) Based on the publicly-available information of other investment corporations as of July 31, 2020. (6) (7) The figure is a weighted average of debt cost based on the amount of interest-bearing debt that will be due within the respective fiscal periods, including loan-related fees, etc. This includes loan-related fees, etc. 42#44Think bold today for a brighter tomorrow. MC-UBS GR 0 P Japan Retail Fund Investment Corporation MCUBS MidCity Investment Corporation Disclaimer This document is intended to provide information relating to the absorption-type merger with Japan Retail Fund Investment Corporation ("JRF") as the surviving corporation and MCUBS MidCity Investment Corporation ("MMI"; JRF and MMI are referred to collectively as the "Investment Corporations") as the dissolving corporation and is not intended to solicit or recommend investment in or encourage the purchase of any particular product. You may incur losses related to fluctuations in the prices of the Investment Corporations' investment units as a result of any fluctuations in the trading market, interest rates, real estate market, and other factors, or a decrease in rental income relating to the real property underlying the investment units. When making any investment decision with respect of the Investment Corporations' investment units, investors must make their investment decisions based on their own determinations and assume full responsibility for their own investment decisions. ● This document is not a disclosure statement or operational report pursuant to the Financial Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations, or the securities Listing Regulations of the Tokyo Stock Exchange. • The information provided in this document is based on information available to the Investment Corporations as of the date hereof. The Investment Corporations do not guarantee the accuracy, completeness, certainty, validity or fairness of such information. Moreover, the information contained in this document is subject to revision without prior notice. • This document contains statements relating to future results, plans, management targets, strategies and other forward-looking information that are based on current assumptions derived from information available as of the date hereof. Such statements will no longer be accurate or applicable if the assumptions underlying such statements change. As such, these statements are not a guarantee of any future results, outcomes or financial conditions. ⚫ The information contained herein may not be reproduced, circulated, quoted or otherwise used without the prior consent of the Investment Corporations. • This English language document was prepared solely for the convenience of, and reference by, non-Japanese persons. The Investment Corporations give no warranties as to its accuracy or completeness. Asset Management Company: Mitsubishi Corp.-UBS Realty Inc. (Financial Instruments Dealer, Director of Kanto Local Financial Bureau (Financial Instruments Dealer) Number 403, Member of The Investment Trusts Association, Japan)