#1COURTYARD Marriott בבבב CONRAD DURIYA PO EXTION Investor Presentation for Financial Results Fiscal Period Ended August 2023 (43rd Fiscal Period) Security Code: 8961 Asset Management Company m MORI MORI TRUST Asset Management Co., Ltd. TRUST GROUP 000 MORI TRUST REIT MORI TRUST REIT, Inc.#2Contents 1. Financial Highlights for 43rd FP Ended August 2023 Fiscal Period Ended August 2023 (43rd FP) Settlement Highlights Financial Highlights for 43rd FP Ended August 2023 Performance Summary at Four Hotel Properties with Variable Rent P. 5 P. 3 P. 4 P. 8 3. Forecasts for the FP Ending February 2024 (44th FP) and August 2024 (45th FP) Future Outlook as a Basis for Forecasting Business Performance ◆ Summary of Forecasts for the FP Ending February 2024 (44th FP) and August 2024 (45th FP) P.10 2. Overview of the Settlement for 43rd FP Ended August 2023 Overview of the Settlement for the FP Ended August 2023 (43rd FP) P. 7 Factors of Change in Distributions per Unit (Previous Forecast for FP Ended August 2023 vs. Actual for FP Ended August 2023) . 7. Characteristics of MORI TRUST REIT, Inc. Fundamental Principles and Characteristics of MTR Intensive Investment in High-quality Assets P.26 P.27 Portfolio Consisting Primarily of High-quality Properties Developed by the Sponsor P.28 Mori Trust Group's Track Record of Developing a Variety of High-quality Assets P.29 Broad Collaboration with the Mori Trust Group Mori Trust Group P.30 P.31 Major Hotels Developed, Held and/or Operated by Mori Trust Group P.32 ◆ Major Hotel Development Projects Underway by Mori Trust Group P.33 8. Appendix ◆ Acquisition of Properties Developed by a Sponsor (Additional Acquisition of Kamiyacho Trust Tower) P.35 P.11 Overall Status of Hotel Market P.36 Factors of Change in Distributions per Unit (Actual for FP Ended August 2023 vs. Revised Forecast for FP Ending August 2024) P.12 Factors of Change in Distributions per Unit (Revised Forecast for FP Ending February 2024 vs. Revised Forecast for FP Ending August 2024) 43rd FP Operating Results by Property (Year-on-Year Comparison) 43rd FP Operating Results by Property (Period-on-Period Comparison) P.38 Performance of each hotel assets (Hilton Odawara Courtyard by Marriott Tokyo Station Courtyard by Marriott Shin-Osaka Station) P.37 P.39 P.13 4. External and Internal Growth Strategy Investment Policy, Track of Asset Size Growth and External Growth and Portfolio Summary ◆ [Reference] Timing of Compensating for the Difference from the Minimum Guaranteed Rent P.42 Financial Statements for the FP ended August 2023 (43rd FP) Changes in Indicators P.43 P.46 P.15 Changes in Asset Size, LTV and Distribution Per Unit P.47 ◆ Summary of External Growth Strategy P.16 Portfolio List (As of August 31, 2023) P.48 ◆ Summary of Internal Growth Strategy (office) P.17 Appraisal Values of Portfolio Properties at the FP-End (As of August 31, 2023) P.49 ◆ Summary of Internal Growth Strategy (hotel) P.18 ◆ Changes in Occupancy Rate P.50 5. Financial Status Portfolio Summary and Breakdown of Property-Relate Revenues/Expenses P.51 Overview of Lease Contracts P.55 Financial Status Details of Hotel Property Lease Contracts P.56 (Management Results and Loan Repayment Schedule Diversification) Financial Status (Status of Interest-Bearing Liabilities) Accounting of Goodwill P.20 Interest-Bearing Liabilities (As of August 31, 2023) P.57 P.21 Investors P.58 P.22 ◆ Changes in Unit Prices P.59 ◆ Changes in Vacancy Rate and Rent per Unit in Major Cities P.60 6. Initiatives Related to ESG Asset Management Company Remuneration Methods (After March 1, 2023)) P.61 ◆ Organization Chart P.62 Initiatives Related to ESG P.24 Note P.63 1#3CONRAD 01 Financial Highlights for 43rd FP Ended August 2023 N COURTYARD Marrioll#4Fiscal Period Ended August 2023 (43rd FP) Settlement Highlights Distribution per Unit for 43rd FP 1,700 yen (up 116 yen (up 7.3%) vs forecast as of April 2023) Distribution per Unit (excluding temporary factors) 1,607 yen (up 240 yen (up 17.6%) vs forecast as of April 2023) * Temporary factors: appropriation from internal reserves, factors related to gain on sale of real estate properties, merger related expenses, etc. Asset Number of property : 22 properties (up 5 properties) Asset size : 470.1 billion yen (up 146.1 billion yen) (Note 1) Occupancy rate : 98.9% (up 1.4pt) * Sublease basis : 97.9% (up 4.8pt) (Note 2) Appraisal values of portfolio properties at the fiscal period end Unrealized profit: 41.6 billion yen (down 2.2billion yen) (Note 3) : 492.4 billion yen (up 143.5 billion yen) Key Figures in Results for 43rd FP Operating revenues Real estate rental income ΝΟΙ Net income 11,812 mn yen (up 202 mn yen vs forecast) 6,992 mn yen (up 868 mn yen vs forecast) 7,988 mn yen (up 324 mn yen vs forecast) 7,157 mn yen (up 1,520 mn yen vs forecast) As of August 31, 2023 (change from the previous fiscal period in parentheses) Debt Balance of interest-bearing debt : 224.5 billion yen (up 72.0 billion yen) LTV : 47.4% (up 0.1pt) Average interest for borrowings: 0.57% (up 0.05pt) Average duration of interest - bearing liabilities Long-term rating of issuers (Note 6) : 3.1 year (down 0.4 year) : AA (stable) / Japan Credit Rating Agency, Ltd. NOI Yield : 3.4% (up 0.9pt) (Note 4) Yield after depreciation: 3.0% (up 1.0pt) (Note 5) Equity Number of units issued Investment ratio : [by area] Tokyo metropolitan area 78.9% (up 0.3pt) [by use] Office Hotel 56.5% (down 16.5pt) 30.2% (up 24.4pt) NAV per unit Investment unit price : 3,560,000 units (up 2,240,000 units) : 75,240 yen (down 0.3%) (Note 7) : 73,600 yen / closing price on August 31, 2023 3#5Financial Highlights for 43rd FP Ended August 2023 1. Realization of Distributions Significantly Exceeding Initial Forecast Realized distributions (*) that exceeded the initial forecast announced in November 2022 by 297 yen (22.7%) due to internal growth and various measures * Excluding temporary factors 1,700 (Unit: yen) Distribution excluding temporary factors 1,584 2. Promote Initiatives to Improve Profitability (i) Recovery of Office Occupancy Rate ⚫ Tokyo Shiodome Building (Note 2) Jul. 2021 Occupancy rate 50.8% ⚫ Shin-yokohama TECH Building Jan. 2022 Occupancy rate 51.3% 3. Recovery of Hotel Performance Total actual rents of Four Hotels with Variable Rents (Note 3) recovered to 89% of the same period in 2019 [Trends in MTR's Hotel Business Results (Percent Change Vs. 2019)] 20% Feb. 2023 (Scheduled) Oct. 2023 70.8% 99.2% 0% (Scheduled) Feb. 2023 Oct. 2023 -20% -40% 78.0% 100% -60% -80% 1,519 1,310 Forecast for . 1,607 1,367 Forecast for 43rd FP Actual 43rd FP as of as of the previous the merger financial results announcement announcement (Excluding temporary factors) Distribution : + 297 yen (+ 22.7%) 4. Raise Profit Level by Reducing Depreciation • Expanded adoption of economic life for all assets held, resulting in longer useful lives and continuous decline in depreciation (* Excluding temporary factors) Effect of Raising the Level of Distributions (*) (ii) Replacement of Shinbashi with Sendai (2 out of 3 Completed) Improved profitability by selling Shimbashi, where commercial tenants have vacated, and acquiring Sendai, an office building with stable occupancy. • The first (end of Feb. '23) and second (end of Aug. '23) transactions were completed, with the third (end of Feb. '24) to follow. All transactions are scheduled to be completed. (iii) Additional Acquisition of Kamiyacho through Merger Effect and Sponsor Support • Raise the level of distributions by using the acquisition capacity created by the decrease in LTV due to the merger. The acquisition of Kamiyacho through sponsor support demonstrates the strong commitment of the sponsor in returning to a growth path. • 5. Dealing with Commercial Tenants Moving out (in Progress) The tenant of Kohnan Sagamihara-Nishihashimoto (Note) moved out when the fixed-term lease contract expired in Sep. 2023. Jan-23 Feb-23 Mar-23 Shangri-La [Based on rent (linked to hotel total revenue)] Hilton Odawara [Based on hotel total revenue] Courtyard Tokyo [Based on RevPAR] Courtyard Shin-Osaka [Based on RevPAR] (Unit million yen) *excluding minimum guaranteed rent Shangri-La Hilton Odawara CY Tokyo CY Shin-Osaka Total 42nd FP Actual rent Actual rent 43rd FP 562 935 184 189 148 278 123 296 1,019 1,699 6. Steadily Build Up Internal Reserve Balance Policy on Use of Internal Reserves • The sale of Shinbashi generated a gain of sale of real estate, of which a portion was reserved internally. (mn yen) Balance of internal reserve (left axis) (yen) • As with other properties and sections, if no new contracts are signed when the forecast is formulated in April 2023, it is assumed that, in principle, the property will remain vacant, and there will be no revision to the forecast due to this tenant's leaving. Conversion per unit (right axis) 4,000 800 697 Plan to use internal 564 3,000 600 459 43rd FP Actual Forecast Vs. Apr. 23 +152 yen (+11.1%) 2,000 2,482 Revised Forecast Policy for Future Measures 2,008 Forecast Vs. Apr. 23 +145 yen (+10.6%) The property is being considered for both re-tenanting and sale given its proximity to the Ken-O Expressway and Route 16, as well as taking into account the potential of the area around Hashimoto Station where the Linear Chuo Shinkansen is scheduled to open. 1,000 1,636 200 0 0 Actual for Actual for 41st FP 42nd FP Actual for 43rd FP 44th FP reserves to stabilize distributions in response to a temporary decrease in 400 distribution (Example of utilization) Temporary decrease in revenues due to tenants moving out O Dilution due to issuance of new investment units, etc. (Note) The name of Kohnan Sagamihara-Nishihashimoto was changed to "Hashimoto MTR Building" on September 28, 2023. The same applies hereinafter. 4#6-20% -30% Summary of Four Hotels with Variable Rents Steady recovery in each hotel, with the total actual rent performance of Four Hotels with Variable Rents reaching 89% of the level of the same period in 2019 Shangri-La Although monthly volatility is high, rents calculated based on hotel revenue continue to recover, exceeding 2019 levels in some months • Monthly volatility has been decreasing in recent months Rents vs. 2019 (Percent Change) 30% Period reflected in rents for the 20% FP ended Aug. 2023 10% 0% -10% Hilton Odawara • In the accommodation sector, the recovery trend in domestic leisure demand due to the reclassification of COVID-19 as Class 5 was leveraged and sales at high unit prices continued, centering on holidays, to raise revenues. • Improved consumer sentiments have led to an increase in the number of day trip guests opting for lunch and dessert buffets, swimming pools, and natural hot springs, contributing to the hotel's performance. Total Sales vs. 2019 (Percent Change) 20% 0% Period reflected in rents for the FP ended Aug. 2023 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 -20% -40% Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 • . Courtyard Tokyo The accommodation sector continues to pursue a high-unit-price strategy, targeting overseas business travelers, by attracting customers mainly through Marriott.com. Going forward, the challenge will be to achieve both ADR and Occupancy rates. (Reference) Share of foreign guests in the total number of guests Apr-23 May Jun. Jul. 73.4% 64.2% 65.5% 70.6% Aug. 68.2% In the food and beverage sector, sales of BBQ plans utilizing terrace seating and free-flow plans led to a steady recovery, with average customer spend reaching a level exceeding that of 2019. • Courtyard Shin-Osaka Regarding ADR, while continuing the high unit-price strategy focusing on individual customers, proactive efforts to attract group customers supported the occupancy rate. Inbound travel is increasing for not only leisure but also business use by foreign-affiliated companies. Although the majority of visitors are from the U.S., use from mainland China (mainly individual visitors) has been on the rise recently and is now second in volume only to the U.S. (Reference) Share of foreign guests in the total number of guests Apr-23 May 67.2% Jun. 52.5% 61.3% Jul. Aug. 54.3% 43.2% Hotel Indicators vs. 2019 30% Period reflected in rents for (Percent Change) the EP ended Aug. 2023 20% ADR for the same month 10% of 2019 (%) RevPAR for the same 0% month of 2019 (%) OCC for the same month of 2019 (%pt) -10% -20% OCC (43rd FP) 76.2 % -30% ADR (43rd FP) 30,938 yen RevPAR (43rd FP) 23,581 yen Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Hotel Indicators vs. 2019 (Percent Change) 20% ADR for the same month of 2019 (%) 10% 0% RevPAR for the same month of 2019 (%) -10% OCC for the same month of 2019 (%pt) OCC (43rd FP) -20% Period reflected in rents for the FP ended Aug. 2023 81.0 % -30% ADR (43rd FP) 20,359 yen RevPAR (43rd FP) 16,486 yen Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 5 Aug-23#702 Overview of the Settlement for 43rd FP Ended August 2023 CONRAD ---------- COURAYARD- Marrioll#8Overview of the Settlement for the FP Ended August 2023 (43rd FP) Distribution per Unit for 43rd FP 1,700 yen (up 116 yen (up 7.3%) vs forecast as of April 2023) Distribution per Unit (excluding temporary factors) 1,607 yen (up 240 yen (up 17.6%) vs forecast as of April 2023) 42nd FP · Operating revenues exceeded the forecast by 202 million yen due to factors such as progress with leasing and recovery in hotel performance. Operating income was 876 million yen higher than the forecast due to a decrease in depreciation resulting from a review of the useful life of the asset, etc. Distribution per unit excluding temporary factors exceeded the forecast by 240 yen to become 1,607 yen. Main factors in change 43rd FP Items (million yen) (Ended Feb.2023) (Ended Aug.2023) Actual Forecast 43rd FP (Ended Aug.2023) Actual (for five months) (as of Apr. 2023) (A) (B) (C) Change from Forecast (C-B) vs. forecast Operating revenues Rental revenues Gain on sale of real estate Operating expenses Property-related expenses 7,258 11,609 11,812 (a) 5,828 10,180 10,374 202 194 <Property-related revenues> 1,430 1,428 1,437 8 Operating revenues Increase in rent due to recovery in hotel performance 3,200 5,297 4,623 - 673 Increase in office rent due to factors such 2,710 4,057 3,382 - 674 Property and other taxes. 879 1,227 1,202 - 24 Overhead expenses Depreciation Selling, general and Profits and losses from real estate rental business Earnings before depreciation and amortization (NOI) Operating income Non-operating expenses Ordinary income Income taxes 916 1,288 1,184 - 104 914 1,541 996 - 544 490 1,240 1,240 0 administrative expenses (d)=(a)-(b) 3,117 6,123 6,992 868 (d)+(c) 4,032 7,664 7,988 324 4,057 6,311 7,188 876 326 664 653 - 10 . 3,731 5,647 6,535 888 as pregress with leasing • Increase in gain on sale of real estate (Shinbashi Ekimae MTR Building) Operating expenses <Property-related expenses> Property and other taxes not yet accrued for the expected (Kamiyacho)(due to unsettled property taxes, etc.) Decrease in utilities expenses • Decrease in repair expenses decrease in depreciation resulting from a review of the useful life of the asset 163 mn yen 30 mn yen 8 mn yen - 23 mn yen - 59 mn yen - 30 mn yen - 544 mn yen current 0 10 10 - 0 Income taxes deferred 116 - 0 - 632 - 631 Income taxes - deferred Profit 3,614 5,637 7,157 1,520 Balance of internal reserves 2,008 2,005 2,482 476 Transfer of deferred tax liabilities due to unification to the reserve for reduction entry 631 mn yen Distribution per unit (yen) 2,545 1,584 1,700 116 Distribution per unit excluding 1,839 temporary factors (yen) (*) 1,367 1,607 240 (Deferred tax liabilities (debt) → Reserve for reduction entry (equity)) Profit Total number of outstanding investment units . 1,320,000 3,560,000 3,560,000 Increase due to upward revision of ordinary income • Increase due to change in income taxes deferred 888 mn yen - 631 mn yen * Temporary factors: appropriation from internal reserves, factors related to gain on sale of real estate properties, merger related expenses, etc. * The 42nd fiscal period (ended February 28, 2023) is an irregular length of five months due to the merger with MORI TRUST Hotel Reit, Inc. (dated March 1, 2023). ⚫ (partly) for internal reserves of gain on sale of Shinbashi Balance of internal reserves 476 mn yen 7#9Factors of Change in Distributions per Unit (Previous Forecast for FP Ended August 2023 vs. Actual for FP Ended August 2023) Due to a decrease in depreciation resulting from a review of the useful life of the asset and to expecting further internal growth in line with the recovery of the office and hotel markets, actual distributions for the 43rd FP increased significantly compared with previous forecast as of the merger announcement and of the previous financial results announcement. Temporary factors - Gain on sale due to second sale of Shinbashi (one-third co-ownership interest): +376 Expenses for the Merger (yen) 1,750 : -167 Temporary factors - Gain on sale due to second sale of Shinbashi (one-third co-ownership interest): +384 Expenses for the Merger Decrease in depreciation resulting from a review of the useful life of the asset : -167 Temporary factors - Gain on sale due to second sale of Shinbashi (one-third co-ownership interest): +390 - Expenses for the Merger Internal reserves Increase in actual hotel rents Increase in actual rents at the Four Hotels with Variable Rents from 78% (forecast) to 89% (actual) compared with 2019 1,700 93 : -164 : -133 1,700 1,650 1,600 1,584 1,550 1,519 1,500 217 1,450 209 1,400 1,350 1,300 1,367 1,310 +9 +45 +152 Increase in office rents etc. Other - +34 Decrease in repairs and interest etc. Distribution excluding temporary factors Forecast for 43rd FP Forecast as of the merger announcement (as of Nov. '22) Forecast for 43rd FP Forecast as of the previous financial results announcement (as of Apr. '23) (Excluding temporary factors) Distribution: +240 yen (+17.6%) (Excluding temporary factors) Distribution: +297 yen (+22.7%) 1,607 Actual for 43rd FP Actual 8#1003 Forecasts for the FP Ending February 2024 (44th FP) and August 2024 (45th FP) CONRAD N COURTYARD Marrioll#11Future Outlook as a Basis for Forecasting Business Performance Expect (1) occupancy rate improvement at Shiodome and Shin-Yokohama, (2) rent recovery at Four Hotels with Variable Rents, and (3) profitability recovery through replacement of Shimbashi and Sendai. FP Before 42nd FP 43rd FP (1st FP after the Merger) Ended Aug. 2023 Aug. 44th FP Ending Feb. 2024 Jan. 45th FP Aug. Before Feb. 2023 Mar. Apr. May Jun. Jul. 2023 Sep. Oct. Nov. Dec. 2024 Feb. Mar. 2024 No. of tenants 41st FP (Sep. 2022) 14 66.5% 42nd FP (Feb. 2023) 18 70.8% 95.8% 95.8% 95.8% 99.2% 87.5% 90.2% 26 25 76.5% 76.5% Aiming to maintain and improve occupancy rate 24 23 20 (1) Utilizing the strong asset value of these properties and leasing up vacant space at office buildings while diversifying tenants 42nd FP 100% (Feb. 2023) 92.7% 41st FP 89.1% 89.1% 89.1% 89.1% 18 85.5% 80.1% 78.0% 21 22 Aiming to maintain and improve occupancy rate 20 19 18 (Sep. 2022) 17 71.7% Shangri-La CY Tokyo/Shin-Osaka Hilton Odawara Total rents vs. same period in 2019 Period for which the rents are fixed Same as above Same as above Vs. 2019: 89% (Actual) Sale of Shinbashi '23/2/28 First sale of Shinbashi (Retail Facility) Three-third co- ownership interest (100%) • Period for which the rents are projected Same as above Same as above (Forecast) Vs. 2019: 90% (Partly actual partly forecast) Vs. 2019: 92% (2) Steady recovery of Four Hotels with Variable Rents '23/8/31 (sale of one-third co-ownership interest) Two-third co-ownership interest 1 Gain on sale occurs (partly for internal reserves) Acquisition of Sendai (Office) 1 '23/2/28 Gain on sale occurs Second sale of Shinbashi (sale of one-third co-ownership interest) One-third co-ownership 2 (partly offsetting merger expenses and partly for internal reserves) 24/2/29 Third sale of Shinbashi 3 (sale of one-third co-ownership interest) Sale interest Completed Gain on sale occurs (partly for internal reserves) (3) Replacing Shinbashi (occupancy rate: 0%) with Sendai (occupancy rate: 99%) and improving profitability while recording gain on sale over three fiscal periods One-third co-ownership interest First acquisition of Sendai (acquisition of one-third co-ownership interest) 2 Two-third co-ownership interest '23/8/31 Second acquisition of Sendai (acquisition of one-third co-ownership interest) Three-third co- 3 ownership interest (90.845%) '24/2/29 Third acquisition of Sendai (acquisition of one-third co- ownership interest) Year/ Month Building Shiodome for Tokyo Occupancy Rates Occupancy Rates assumption of Four Performance for Shin-yokohama hotel properties with TECH Building Variable Rent Replacing Shinbashi with Sendai 10#12Summary of Forecasts for the FP Ending February 2024 (44th FP) and August 2024 (45th FP) Forecast Distribution per Unit for the Fiscal Period Ending February 2024 (44th FP) 1,757 yen (+57 yen (+3.4%) from actual for 43rd FP) Forecast distribution per unit excluding temporary factors 1,577 yen (- 30 yen (-1.9%) from actual for 43rd FP) 44th FP Forecast Distribution per Unit for the Fiscal Period Ending August 2024 (45th FP) 1,602 yen (-155 (-8.8%) from 44th FP forecast) (+25 yen (+1.6%) from the 44th FP forecast excluding temporary factors) Main factors in change (million yen) Forecast for 44th FP Ending Feb. 2024 (Change from 43rd FP Actual: B-A) Operating revenues 43rd FP (Ended Aug. 2023) (Ending Feb. 2024) Change from Item (million yen) Actual Revised Forecast 43rd FP 45th FP (Ending Aug. 2024) Forecast Change from 44th FP Revised Actual (as of Oct. 2023) Forecast (as of Oct. 2023) Increase in rent of office etc. (Increase in rent of Shiodome and Shin-Yokohama, acquisition of Sendai etc.) +426 A Decrease in rent due to vacation of kohnan B B-A C Operating revenues 11,812 11,952 140 10,823 C-B - 1,129 Rental revenues (a) Decrease in operating revenues due to seasonal fluctuations in hotel rents 210 10,374 10,580 205 10,823 243 - 9 Gain on sale of real estate 1,437 1,372 - - 64 - 1,372 • Operating expenses Operating expenses 4,623 4,304 - 318 4,317 12 Property-related expenses (b) 3,382 3,661 278 3,729 68 Increase in expenses due to acquisition of Sendai Increase in repairs +96 +89 Property and other taxes 1,202 1,253 51 1,271 18 Overhead expenses 1,184 1,394 210 1,440 45 fixed property tax, city planning tax for past years (temporary factor) +49 - 25 Depreciation Selling, general and 996 1,013 16 1,017 4 Decrease in expenses due to sale of Sendai - 587 administrative expenses 1,240 643 - 597 587 - 55 Absence of merger-related expenses . Profits and losses from Non-operating expenses (Increase in interest expenses) +47 (d)=(a)-(b) 6,992 6,918 - 73 7,094 175 real estate rental business . Balance of internal reserves Earnings before depreciation and amortization (NOI) Operating income Non-operating expenses Ordinary income (d)+(c) 7,988 7,931 - 56 8,111 179 Partial internal reserves of gain on sale of Shinbashi +681 7,188 7,648 459 6,506 - 1,141 653 701 47 6,535 6,946 410 794 5,712 92 Forecast for 45th FP Ending Aug. 2024 (Change from 44th FP forecast: C-B) • - 1,234 Operating revenues Income taxes - current 10 10 Income taxes - deferred - 632 0 632 10 Profit 7,157 6,935 - 221 5,701 - 1,234 Increase in rent of office etc. (Increase in rent of Shiodome and Shin-Yokohama, acquisition of Sendai etc.) Increase in rent of hotel +233 +57 Decrease in rent due to vacation of kohnan Balance of internal reserves 47 2,482 3,163 681 3,160 3 Distribution per unit (yen) 1,700 1,757 57 1,602 - 155 • Distribution per unit excluding Operating expenses temporary factors (yen) 1,607 1,577 - 30 1,602 25 Total number of outstanding 3,560,000 3,560,000 3,560,000 investment units * Temporary factors: appropriation from internal reserves, factors related to gain on sale of real estate properties, merger related expenses, etc. Absence of gain on sales (Shinbashi) Increase in expenses due to acquisition of Sendai Absence of fixed property tax, city planning tax for past years Decrease in expenses due to sale of Sendai Non-operating expenses (Increase in interest expenses) - 1,372 +97 - 49 - 27 +9211#13Factors of Change in Distributions per Unit (Actual for FP Ended August 2023 vs. Revised Forecast for FP Ending August 2024) Profitability will improve due to recovery of occupancy rates in Shiodome and Shin-Yokohama and replacement of properties in Shinbashi and Sendai, although factors such as tenant move-outs, higher repair expenses and higher interest rates are conservatively expected to reduce revenues Total distributions (including temporary factors) are expected to increase compared with the previous period due to the gain on the sale of Shinbashi Temporary factors Gain on sale due to second sale of Shinbashi (one-third co- ownership interest) : +390 - Expenses for the Merger - 164 Internal reserves : - 133 Decrease in operating revenues due to seasonal fluctuations in hotel rents vs. YoY +172 (Vs. Feb. 2023 FP) Actual rents for Four Hotels with Variable Rents are expected to be 90% of those for the same period in 2019 Temporary factors - Gain on sale due to third sale of Shinbashi (one-third co- ownership interest) +371 Internal reserves : 191 Temporary factors - Gain on sale due to third sale of Shinbashi (one-third co- ownership interest) : +367 Internal reserves : - 138 (yen) 1,800 - 1,750 +42 1,700 1,700 +72 1,650 93 1,600 1,550 1,500 1,450 1,607 1,400 1,350 0 Actual for 43rd FP 2 - 60 Decrease in rent due 1,757 13 - 69 180 Main factors of difference from the forecast as of the previous financial results Increase in office rents of Shiodome and Shin-Yokohama - Shiodome : +60 - Shin-Yokohama :+12 to vacation of kohnan Property taxes for Kamiyacho for prior years due to the determination of taxes for building (one-time factor) Improve profitability attributable to second asset replacement Other - Increase repairs etc. : - 28 1,577 - Partial Vacation : 14 Interest rates are expected to rise : - 13 - : +7 Other : 14 - Increase due to acquisition of Sendai: +35 © Decrease in expenses due to sale of Shinbashi Distribution excluding temporary factors Forecast for 44th FP Revised Forecast announcement Decrease in depreciation by revising the treatment of the useful lives, etc. : +145 - Upward revision of hotel rent forecast : +62 Other :-1 1,600 229 1,371 Forecast for 44th FP Forecast as of the previous financial results announcement (as of Apr. 2023) 12#14Factors of Change in Distributions per Unit (Revised Forecast for FP Ending February 2024 vs. Revised Forecast for FP Ending August 2024) Despite assuming rise in interest rates and some vacancies, expecting further internal growth in line with the recovery of the office and hotel markets and improved profitability from the replacement of properties in Shinbashi and Sendai. The forecast distribution (excluding temporary factors) will be at the same level as the actual results for the period ended Aug. 2023 and the forecast for the period ending Feb. 2024. Temporary factors - Gain on sale due to second sale of Shinbashi (one-third co- ownership interest) : +390 - Expenses for the Merger - 164 Temporary factors - Gain on sale due to third sale of Shinbashi (one-third co- ownership interest) : +371 : - 191 - Internal reserves Internal reserves (yen) 1,800 1,750 1,700 1,700 : - 133 1,757 Expected recovery in hotel rents vs. YoY +13 (Vs. Aug. 2023 FP) Actual rents for Four Hotels with Variable Rents are expected to be 92% of those for the same period in 2019 Full-year contribution of rent increase Other - Interest rates are expected to rise Partial vacation etc. - Shiodome : +4 180 - Shin-Yokohama : +3 1,650 93 +16 - 38 +40 1,600 +7 1,550 1,607 Improve profitability attributable to third asset replacement 1,577 1,500 Decrease in expenses due to sale of Shinbashi : +7 - Increase due to acquisition of Sendai : +33 1,602 Distribution excluding temporary factors 0 Actual for 43rd FP Forecast for 44th FP Revised forecast Forecast for 45th FP Revised forecast 13#15CONRAD ---------- 04 External and Internal Growth Strategy COURTYARD- Marrioll -#16Investment Policy, Track of Asset Size Growth and External Growth, Portfolio Summary ⚫ Pursue Asset Potential, Stability and Growth Potential with Offices and Hotels as Core Assets ⚫ MTR will aim for growth through the Merger and an increase in asset size (about 500 billion yen) by acquiring mostly properties developed by the sponsors. Investment Policy Portfolio Summary Use of investment Area of investment Central Tokyo Other 1% Retail 60% or more facility Office Core Assets Hotel 20~55% 40~80% Office Other (metropolitan 13% Ratio by area, ordinance- designated cities, etc.) Up to 40% Hotel asset class Office 30% 56% Major cities across Japan Hotel Other (Retail facility, Residential) Famous tourist sites Up to 30% Other 4% Track of Asset Size Growth and External Growth Target Regional ratios Major Cities across Japan 17% Central Independent growth of MTR and MTH (billion yen) Listing of MTR stock Acquisition Listing of MTH stock price New MTR MTR New growth as New MTR The Merger of MTR and MTH Continuous growth Tokyo 79% Return to 500.0 growth path MTH 470.1 Tokyo Shiodome Building 18% Kamiyacho Trust Tower 11% 400 324.0 324.0 324.0 324.0 324.7 323.9 300 200 107.2 102.0 102.0 108.5 107.7 107.6 107.6 100 0 Period 2017 2018 2019 2020 2021 Ended Before the Merger After the Merger Short/mid- term target Mar. 2004 Other Ratio of top 5 45% properties 8% Kioicho ON Shangri-La Building Building Tokyo 7% 10% Acquisition price Number of 470,156 million yen 22 properties properties Long-term target (Note) The acquisition price is on an acquisition price basis as of the end of August 2023. Ratio by asset class, Regional rations, Ratio of top 5 properties, are calculated by acquisition price. 15#17Summary of External Growth Strategy Recognition of External Environment Shared Office Hotel • • Information on the sale of high-quality properties from an investment perspective is still limited and a situation in which it is difficult to acquire properties persists While changes are observed in the investment attitude of some overseas investors in the context of the softening U.S. office market, demand for property purchases from domestic investors remains high. The hotel market continues to recover, and with the expectation of possible further growth, hotel transactions by both domestic and foreign investors are being revitalized. • • Future Policy Aiming to expand asset size through methods such as leveraging sponsor support (including not only property provision but also joint investments, etc.) and asset replacement. Future growth may be expected, and we are actively considering hotels that can be expected to have reasonable yields. We are also considering a wide range of projects with which improved revenue can be expected based on a change of operator or the like through leveraging the sponsor's hotel operation and management capabilities. With regard to offices, in addition to regional properties that can be expected to have a reasonable yield and whose occupancy is relatively stable, in central Tokyo, where the deterioration of properties is becoming more evident due to the impact of the large volume of new office supply, we are carefully considering high-grade, competitive properties in favorable locations. Changes in Number and Amount of Real Estate Transactions Situations of Recognition of the Market Cycle among Real Estate Investors 12.6 9.1 8.6 8.7 12.4 11.5 8.0 8.9 5.2 0% 20% 40% 60% 80% 100% 8% 5.4 Apr.2016 Apr.2017 7% Apr.2018 Amount (100 billion yen) number 6% Apr.2019 Apr.2020 5% 389 413 407 326 385 379 356 361 Apr.2021 327 319 Apr.2022 Apr.2023 Q1 Q2 Q3 Q4 Q1 2021 Q2 Q3 Q4 Q1 Q2 2022 2023 Recovery stage Expansion stage Reduction stage 6 Trend in Transaction Yield • Standard Class-A Buildings • Hotels Specializing in Accommodation 8% 0000 7% 6% 5% 4% 4% Central Tokyo Tokyo Osaka Midousuji, Osaka 3% Sapporo 3% Sapporo Sendai Nagoya Fukuoka Okinawa Fukuoka 2% 2% 8 Recession stage 9999 Source Prepared by the company based on Nikkei BP "NIKKEI REAL ESTATE MARKET REPORT May 2020, Aug. 2020, Nov. 2020, Feb. 2021, May 2021, Aug. 2021, Nov. 2021, Feb. 2022, May 2022, Aug. 2022, Nov. 2022, Feb. 2023, Aug. 2023" Source: Prepared by the Company based on Japan Real Estate Institute: The Japanese Real Estate Investor Survey * Recognition of the market cycle (market trends) in relation to Tokyo (Marunouchi/Otemachi districts) Source: Prepared by the Company based on Japan Real Estate Institute: The Japanese Real Estate Investor Survey The figure for Central Tokyo represents the simple mean value of the data obtained in the survey in Marunouchi-Otemachi, Nihonbashi, Toranomon, Nishi-Shinjuku, Shibuya and Osaki. *The data were current as of October of each year. But the data of 2023 was current as of April. 16 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022 2004 2006 2008 2010 2012 2014 2016 2018 2020 2022#18Summary of Internal Growth Strategy (Office) Office Recognition of External Conditions In central Tokyo, while there is a large volume of new office supply, due to increased demand among tenants to improve their location or relocate to large spaces, the increase in the vacancy rate has slowed. With the relative advantages and disadvantages of difference areas and properties becoming clearer, there is strong interest in high-grade, competitive properties in favorable locations, and occupancy rates are trending toward recovery. Future Policy Going forward, we will pay attention to the market environment in conjunction with the large volume of new office supply, and along with conducting tenant leasing focusing on occupancy rate, we will enhance relations with existing tenants. Based on tenant needs to improve their location or relocate to larger spaces following the economy and society's return to normalization after the pandemic, we are devoting efforts to building up the occupancy rate at properties which have some vacancies. Condition of Office Market Changes in Vacancy Rate and Rent per Unit in Tokyo Business Districts (%) Average rent (right axis) -Average vacancy rate (left axis) Forecast for Office Rental Market Forecast for Trends in Office Occupancy (5 Wards of Central Tokyo) (yen/ 100.0% 20 month, tsubo) 25,000 98.0% 96.8% 96.8% 96.5% 15 20,000 96.1% 95.5% 96.0% 10 15,000 A moderate recovery is expected in the office market 94.0% 5 10,000 92.0% 0 5,000 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 90.0% 2023 2024 2024 2025 2025 Source: Prepared by MTR based on data published by Miki Shoji Co., Ltd. 2nd half 1st half 2nd half 1st half 2nd half (Source) Commercial Property Research Institute, inc. Tokyo business districts: Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku, and Shibuya-ku 17#19Summary of Internal Growth Strategy (Hotel) Hotel Recognition of External Conditions • In light of the recovery of inbound demand and the weak yen, ADR is increasing and RevPAR at each hotel is trending upward. . • Compared to leisure demand, the recovery in demand is lagging for domestic and foreign business use and group use (banquets, weddings, MICE, etc.). Besides energy costs, attention needs to be paid to increased operating costs due to rising prices and wage levels, the impact of the labor shortage, etc. Condition of Hotel Market Changes in Number of Inbound (vs.2019) Europe and North America Asia (excluding China) • • • Future Policy We will actively capture inbound demand with high room rates via international brand sales channels, etc. We will bring in domestic and foreign business use and group use (banquets, weddings, MICE, etc.), which are expected to recover, by enhancing sales to corporations, agencies, etc. With the aim of maximizing GOP, we will respond to rising operation costs by continuing to raise ADR and achieving operational efficiency (streamlining such as staffing flexibility within the hotel group and joint sales activities). Aiming for rapid recovery to pre-pandemic (2019) rent levels and further growth. Accommodation Consumption Unit Price by International Visitors (per Person per Visit to Japan) Condition of Hotel Operating Scope for Rent Increases at Four Hotel Properties with Variable Rent (Per Investment Unit/Year) (Note 1) Rent levels before Pandemic of COVID-19 1,087 Total China 140% 120% 100% 80% 60% 40% 20% 0% Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 (yen) 90,000 122.9% 80,000 107.7% 70,000 60,000 85.6% 50,000 52,504 40,000 30,000 36.4% 20,000 10,000 0 Aug-23 (Source) Japan National Tourism Organization (JNTO) (Note) The figures for July and August 2023 are estimates. 78,977 (yen) 1,000 2018 2019 2020 2022 2023 2023 1Q 4Q 1Q 2Q (Source) Prepared by MTR based on International Visitor Survey published by Japan Tourism Agency (Note) Data for 2020 Q2 to 2022 Q3 are missing due to suspension of the survey during the pandemic. 800 779 600 400 200 0 Actual (42nd FP) +Actual (43rd FP) 1965 952 Actual (43rd FP) +Forecast (44th FP) Forecast (44th FP) +Forecast (45th FP) Actual (FP ended Aug.2019) +Actual (FP ended Feb.2020) 18#20CONRAD 05 Financial Status N COURTYARD Marrioll#21Financial Status (Management Results and Loan Repayment Schedule Diversification) Management Results for the Fiscal Period Under Review (Refinance) . MTR reduced the spread of short-term loans taken from the merger, and, amid the rise in the base interest rate for long-term loans, we are shortening the borrowing term for such loans and limiting increases in the costs of raising funds. Average loan term of Long-term loans (Changes in Long-term Base Interest Rate) (%) 1.00 Average interest rate on Average interest rate Short-term loans 0.80 0.34% 0.19% 6.1 year 5.8 year 0.43% 0.68% (Note) Average interest rates are weighted rates applied when repayments and borrowings are undertaken. 0.60 Recognition of Financial Market and Future Policy End of Aug. 2017 (6 years ago) End of Aug. 2022 End of Aug. 2023 (Recognition of Financial Market) Long-term interest rates rose due to YCC correction, while short-term rates remained low 0.40 ⚫ It is necessary to pay attention to the Bank of Japan's policy shifting toward tapering in the future. (Future Policy) MTR will maintain a certain proportion of short-term loans in order to limit the costs for interest-bearing liabilities as a whole. 0.20 While keeping the shortening of borrowing terms for long-term loans in mind as a response to the upward trend in interest rates, we will also raise funds at the same time in an appropriately balanced manner with the aim of diversifying the repayment schedule. (mn yen) 35,000 0.00 3 years 5 years 7 years 10 years Loan Repayment Schedule Diversification (as of Aug. 31, 2023) Fiscal Period Ending August 2024 (Schedule for Repayment within One Year) Fiscal Period Ending February 2024 Repayment Summary 19,500 mn yen ■Short-term loans ■Long-term loans Investment corporation bonds Total amount Average loan term Average interest rate 30,000 25,000 3,000 20,000 26,000 1,000 15,000 16,500 10,000 5,000 1,000 2,000 3,000 21,000 17,500 17,500 15,500 14,000 13,500 11,500 11,000 10,500 7,000 3,000 3,000 0 FP ending FP ending Aug.2024 FP ending FP ending FP ending Feb.2025 Aug.2025 Feb.2026 FP ending Aug.2026 FP ending FP ending FP ending FP ending Feb.2027 Aug.2027 Feb.2028 Aug.2028 Feb.2024 4.8 year 0.40% Repayment Summary Total amount Average loan term Average interest rate 33,000 mn yen 3.9 year 0.39% FP ending Feb.2029 FP ending Aug.2029 3,000 FP ending Feb.2030 15,000 FP ending Aug.2030 1,000 3,500 FP ending Feb.2031 1,500 1,000 - FP ending Aug.2031 FP ending Feb.2032 1,000 FP ending Feb.2036 1,000 FP ending Feb.2037 20 20#22Financial Status (Status of Interest-Bearing Liabilities) Interest-Bearing Liabilities Breakdown of Interest-Bearing Liabilities (as of the end of August 2023) MTR Classi- Balance of Lender (%) fication borrowings Feb. 28, 2023 Mar. 1, 2023 Aug. 31, 2023 Loans Mizuho Bank, Ltd. 48,500 21.6% Change vs. Mar. 1 Sumitomo Mitsui Banking 43,000 19.2% Corporation Total interest-bearing liabilities 152,500 225,975 224,500 -1,475 Sumitomo Mitsui Trust Bank, 28,500 12.7% Limited Short-term loans 6,000 11,475 10,000 -1,475 MUFG Bank, Ltd. 23,500 10.5% Development Bank of Japan 16,500 7.3% Inc. Long-term loans 132,500 200,500 200,500 Resona Bank, Limited. 8,500 3.8% Aozora Bank, Ltd. 6,500 2.9% Investment corporation bonds 14,000 14,000 14,000 The Bank of Fukuoka, Ltd. 5,500 2.4% The Norinchukin Bank 4,500 2.0% LTV (Loan To Value ratio) 47.3% 48.0% 47.4% -0.5pt Mizuho Trust & Banking co., 4,500 2.0% Ltd. Short-term interest-bearing liabilities rati Long-term interest-bearing liabilities rati 3.9% 5.1% 4.5% -0.6pt Shinkin Central Bank 4,000 1.8% The Nishi-Nippon City Bank, 3,500 1.6% 96.1% 94.9% 95.5% 0.6pt Ltd. SBI Shinsei Bank, Limited 2,000 0.9% Fixed interest-bearing liabilities ratio 96.1% 94.9% 95.5% 0.6pt The Ashikaga Bank, Ltd. 2,000 0.9% The 77 Bank, Ltd. 2,000 0.9% Average interest rate at end of fiscal Nippon Life Insurance Company 2,000 0.9% 0.52% 0.55% 0.57% 0.02pt period and beginning of fiscal period Mitsui Sumitomo Insurance 2,000 0.9% Company, Limited SUMITOMO LIFE INSURANCE Short-term loans 0.20% 0.30% 0.19% -0.11pt 1,000 0.4% COMPANY The Hachijuni Bank, Ltd. 1,000 0.4% Long-term loans and investment corporation bonds 0.54% 0.56% 0.59% 0.03pt The Dai-ichi Life Insurance 500 0.2% Company, Limited The Chiba Bank, Ltd 500 0.2% Average duration of interest-bearing liabilities Rating (JCR) 3.5 year 3.2 year 3.1 year -0.1 year The Yamanashi Chuo Bank, Ltd 500 0.2% Subtotal 210,500 93.8% AA (stable) AA (stable) AA (stable) Investment corporation bonds Total 14,000 224,500 6.2% 100.0% Changes in LTV Standard LTV : 50% 47.2% 47.1% 47.2% 47.5% 47.9% 47.2% 47.1% 47.2% 47.4% 47.3% 47.4% 47.1% Mar 31, 2018 Sep 30, 2018 Mar 31, 2019 Sep 30, 2019 Mar 31, 2020 Sep 30, 2020 Mar 31, 2021 Sep 30, 2021 Mar 31, 2022 Sep 30, 2022 Feb 28, 2023 Aug 31, 21 2023#23• . • Accounting of Goodwill (Positive) goodwill of around 0.6 billion yen occurred through the Merger. Our policy is to record goodwill on the balance sheets as intangible assets and amortize it equally over 20 years (40 fiscal periods) as operating expenses on the statements of income and retained earnings. Given that the goodwill amortization amount is relatively small, for the purpose of stabilizing the distribution level in the future, we do not currently plan to record an allowance for temporary difference adjustments (ATA) for resolving tax accounting inconsistencies in order to keep voluntary retained earnings as internal reserves. MTR (surviving corp.) + MTH (dissolving corp.) B/S at the time of the Merger (book value) Assets accepted (book value) Assumed liabilities (book value) Net assets (book value) Market valuation B/S as of the end of February 2023 Assets accepted (Fair value) Assumed liabilities (Fair value) Net assets (Fair value) Merger consideration more than market-value based on net asset value creates positive goodwill. Positive goodwill New MTR B/S after the Merger Merger consideration (MTR Investment unit) Assets (including positive goodwill) Liabilities Net assets Treatment on B/S Treatment policy of goodwill Posted as intangible assets Treatment on P/L Amortized in equal amounts over a period of within 20 years (40 fiscal periods) as operating expenses 22#24CONRAD 06 Initiatives Related to ESG N COURTYARD Marrioll#25Initiatives Related to ESG Initiatives for Owned Hotel Properties Environmental and Social Initiatives We have implemented the following initiatives with a view to limiting waste •Changing to returnable bottles for the water containers provided in each room. (Hilton Odawara) •Recycling used soap as candles. (Hilton Odawara) ⚫Switching to plastic-free or reduced-plastic products for amenities. (CYT) ⚫Charging fees for amenities. (CYT, CYO) We are also engaging in activities such as the following to contribute to local communities. ⚫Donating digital projectors to local elementary schools and supporting extracurricular classes. (Hilton Odawara) • Installing outdoor playground equipment at a daycare in a municipal hospital. (Hilton Odawara) • Participation in "EARTH HOUR2023" (Hilton Odawara, CYO) • Carrying out cleaning activities in the areas near properties. (Hilton Odawara, CYT, CYO) Regular issue of Sustainability Report The Sustainability Report is positioned as an important tool for proactive disclosure of ESG information and scheduled to be issued annually every July. The latest edition was issued in July 2023. Click here for details (Link to the report of MORI TRUST REIT) (Reference) Employee Initiatives by Mori Trust Group ■ Employee Initiatives (MORI TRUST CO., LTD.) (Note 1) Promotion of work-life balance and women's participation ✓ MORI TRUST considers the work-life balance of its employees to help maximize each employee's abilities and strives to create a comfortable environment for them to work. ✓ MORI TRUST was awarded "Platinum Kurumin Certification" from the Ministry of Health, Labor and Welfare as of August 1, 2022, in recognition of its high level of initiatives as a "Childcare Support Company." ✓ MORI TRUST is recognized as a company promoting women's activities and has acquired "Eruboshi" certification. (1) Female employment rate 27.1% ・ろ・は・す EARTH HOURS (2) Female employee rate 27.1% (3) Female management position rate 6.6% Changing to returnable bottles from plastic bottle (Hilton Odawara) Environmental Certification and Evaluation Acquisition of 2023 GRESB Real Estate Assessment (October 2023) Participation in "EARTH HOUR2023" (Hilton Odawara) Male 55.6% (4) Rate of taking children leave Female 100.0% (5) Rate of paid leave taken 82.8% ((1)(4)(5): FY2022, (2)(3): as of March 31, 2023) (Note 2) GRESB Rating [3 Stars] • GRESB Public Disclosure [A Level] 133334 GRES B ✰✰✰✰✰ 2023 GRES B Public Disclosure 2023 Health and productivity 2023 健康経営優良法人 子育てサポートしています 女性が活躍 ●ています Acquired special certification as a company that supports employees with childcare (Platinum Kurumin certification) and certification as a company that promotes women's participation and advancement in the workplace (Eruboshi certification) (Minister of Health, Labour and Welfare certification) and certification as a company that implement health and productivity management (Health & Productivity Management Outstanding Organizations) (Note 1) The employees of the Asset Management Company of MORI TRUST REIT are comprised of personnel seconded from MORI TRUST CO., LTD. (Note 2) Figures shown in (1), (2) and (3) are calculated for employees employed by MORI TRUST CO., LTD. and figures shown in (4) and (5) are calculated for employees assigned to MORI TRUST CO., LTD.) 24#26CONRAD 07 Characteristics of MORI TRUST REIT, Inc. N COURTYARD Marrioll#27Fundamental Principles and Characteristics of MTR MORI TRUST REIT, Inc. (MTR) 000 MORI TRUST REIT A comprehensive REIT with offices and hotels as its core assets, which is truly equipped with asset potential, stability and growth potential MTR will be operated guided by the principles of stability, growth, continuity, trust, social responsibility and sharing rewards shared among the Mori Trust Group companies. Stability Growth Build a portfolio that has both qualities. Continuity Trust Social responsibility Sharing rewards Earn the trust of investors through continuous investment. Maximize unitholder value associated with governance. M MORI TRUST MORI TRUST CO., LTD. Double sponsor support M MORI TRUST HOTELS & RESORTS Mori Trust Hotels & Resorts Co., Ltd. 26#28Intensive Investment in High-quality Assets Building a portfolio with both stability and growth potential based on its core assets, offices and hotels Intensive investment in high-quality, high-grade assets with asset potential leveraging the support of Mori Trust Group assets Asset potential: located in major cities across Japan, concentrated in central Tokyo Properties located in central Tokyo are 78.9% of the entire portfolio 96.0% of the portfolio is properties in major cities across Japan Property owned by MTR Grade: Intensive investment in high-quality, high-grade properties Office Total floor space: Large Contracted rent: High Central Tokyo An investment of 5 billion yen or more Investment in first-class office buildings in Chiyoda, Chuo, Minato, Shinagawa, Shibuya and Shinjuku wards Hotel Guestroom area: Large ADR: High Luxury Guest room floor area: from 40 m² Avg. guest room unit price: from 40,000 yen Upper upscale Guest room floor area: from 30 to 40 m² Avg. guest room unit price: 30,000 to 40,000 yen Tokyo 23 Wards Major cities across Japan An investment of 3 billion yen or more Investment in high-quality office buildings in the Tokyo metropolitan area (Tokyo, Kanagawa, Chiba and Saitama) and other ordinance- designated cities Upscale Guest room floor area: from 20 to 30 m² Avg. guest room unit price: 20,000 to 30,000 yen Upper midscale Guest room floor area: from 15 to 20 m² Avg. guest room unit price: 10,000 to 20,000 yen Others Midscale Guest room floor area: from 10 to 15 m² Avg. guest room unit price: up to 10,000 yen Central Tokyo Total floor space: Small Contracted rent: Low Economy Guest room floor area: up to 10 m² Avg. guest room unit price: up to 10,000 yen Guestroom area: Small ADR: Low 27#29Portfolio Consisting Primarily of High-quality Properties Developed by the Sponsor Building a portfolio with high asset potential consisting primarily of high-quality properties developed by the sponsors, which can be destinations for people to gathering Portfolio including high-grade assets with asset potential and an increase in stability Percent of the portfolio that is in central Tokyo (Percent of the portfolio that is in major cities across Japan) Percentage of properties using an international brand (Hotel) 78.9% (Major cities across Japan: 96.0%) 63.8% Intensive investment in areas with high asset potential Intensive investment in high-grade properties consisting mainly of properties using an international brand Properties for which the development and management capabilities of the Mori Trust Group are used Office High-grade office buildings mainly consisting of large, competitive properties Sendai MT Building Osaki MT Building Hotel High-quality hotels mostly using an international brand Kamiyacho Trust Tower Courtyard by Marriott Tokyo Station Courtyard by Marriott Shin-Osaka Station Hotel Sunroute Plaza Shinjuku Tokyo Shiodome Building Shangri-La Tokyo Hilton Odawara Resort & Spa (Note) The "ratio of the central Tokyo area (ratio of major cities nationwide)" and "ratio of the international brand (hotels)" are calculated based on acquisition price. The usage of a property with more than one use is determined based on the main use of the building 28#30Mori Trust Group's Track Record of Developing a Variety of High-quality Assets Since its foundation in 1951, the Group has engaged in large urban development projects mostly in central Tokyo and operated a property ownership, leasing, operation and management business. The Group has developed a variety of properties, particularly offices in prime locations and hotel assets using international brands. Examples of properties developed and operated by the Mori Trust Group GOTENYAMA TRUST CITY CONDID MARUNOUCHI KYOBASHI TRUST CITY SENDAI TRUST CITY VG TOKYO WORLD GATE TRUST TOWER Gotenyama Trust City Tokyo Shiodome Building Marunouchi Trust City Sendai Trust City Kyobashi Trust Tower Tokyo World Gate Gotenyama Trust Tower Completed in 1990 Tokyo Shiodome Building Completed in 2005 M MARRIOTT TOKYO Marunouchi Trust Tower North/Main Completed in 2003/2008 Sendai Trust Tower Completed in 2010 Kyobashi Trust Tower Completed in 2014 CONRAD SHANGRI-LA TOKYO TOKYO Tokyo Marriott Hotel Opened in 2013 (Rebranded) Conrad Tokyo Opened in 2005 Shangri-La Tokyo Invited in 2009 THE WESTIN SENDAI The Westin Sendai Opened in 2010 VG TOKYO WORLD GATE AKASAKA Tokyo World Gate Akasaka (scheduled completion) (Note 1) Kamiyacho Trust Tower Completed in 2020 Akasaka Trust Tower FY2024 (scheduled completion) COURTYARD BY MARRIOTT Tokyo Station THE TOKYO TORANOMON EDITION Hotels to open Courtyard by Marriott Tokyo Station Opened in 2014 The Tokyo EDITION, Toranomon Opened in 2020 Plans for a hotel inside Tokyo World Gate Akasakal 29#31Broad Collaboration with the Mori Trust Group We are pursuing broad collaboration with the sponsor, with 83.9% of acquisitions involving it. Ratio of same-boat investment is 29.2%, indicating a strong link between the sponsor group and investor profit. Sponsor support by Mori Trust Group Percentage of Acquisitions involving the sponsor | Percentage of Investment units owned by Mori Trust Group Acquisitions based on information provided by the sponsor or Acquisitions based on Joint investment with Acquisitions from the sponsor 60.9% Acquisitions involving the sponsor 29.2% 83.9% the sponsor 23.0% Investment in high-quality properties developed by MORI TRUST, a general developer Recent transactions (including planned) Acquisitions from the sponsor Joint investment with the sponsor Dispositions to the sponsor • The sponsor group's same-boat investment ratio is high even among J-REITs, indicating a strong link with investor profit. Sendai MT Building (2023 2024, MTR) Kamiyacho Trust Tower (2021 2023, MTR) Hotel Sunroute Plaza Shinjuku (2016, MTH) • Shangri-La Tokyo (2016, MTH) • Courtyard by Marriott Tokyo Station (2016, MTH) • Courtyard by Marriott Shin-Osaka Station (2016, MTH) Hilton Odawara Resort & Spa (2019, MTH) • Shinbashi Ekimae MTR building (2023 2024, MTR) • Courtyard by Marriott Tokyo Station (2021 2022 Partially sold, MTH) • Tokyo Shiodome building (2021 Partially sold, MTR) Mita MT building (2014, MTR) (Note) Acquisitions from the sponsor," "Acquisitions based on information provided by the sponsor," and "Acquisitions based on Joint investment with the sponsor" are based on acquisition price 30#32Mori Trust Group Since its founding in 1951, the Mori Trust Group has engaged in large urban development projects primarily in the central Tokyo area, with property holding, leasing, operation, and management. Through the success of this core business, in which the Group has envisioned the future of cities and continued to provide functions truly needed by people, the Group ensures high profitability and stable income and is building a strong financial foundation. 1st stage 1951-1992 Founded Mori Trust Group 1990 2nd stage 1993-2004 Increased competitiveness as a corporate group 2000 3rd stage 2005-2015 4th stage 2016- Developed real estate, hotel, and resort investment business Respond to globalism and promote innovation 2005 2010 2015 2020 Gotenyama Trust Tower Completed in 1990 Shiroyama Trust Tower Completed in 1991. Tokyo Shiodome Building Completed in 2005 Marunouchi Trust City Completed in 2008 Sendai Trust City Completed in 2010 Kyobashi Trust Tower Completed in 2014 Tokyo World Gate Completed in 2020 Tokyo World Gate Akasaka Scheduled for partly completion in 2024 ■Mori Trust Group facilities Holds and operates a large number of properties in central Tokyo, central areas of major cities (Sendai and Osaka) and countryside resorts. Total number of facilities: 94 Buildings for lease: 66 (As of March 31, 2023) Mori Trust Group Recent Topics (1) Decided to open Hotel Indigo Nagasaki Glover Street (scheduled for winter 2024). (2) Acquisition of RIHGA Royal Hotel Kyoto (3) Involved in investing in and renovating an office building in Manhattan (U.S.). Hotel Indigo Nagasaki Glover Street RIHGA Royal Hotel Kyoto 245 Park Avenue 31#33Major Hotels Developed, Held and/or Operated by Mori Trust Group Development Capabilities Alliance with a variety of international brand hotels Operation & Management Capabilities Strategic Hotel Development Resort Areas (Properties indicated in red are those owned by MORI TRUST REIT) 16 9 JW Marriott Hotel Nara 158 rooms RIHGA Royal Hotel Kyoto 489 rooms MC MC CONRAD' JW MARRIOTT TOKYO SHANGRI-LA 10 Suiran, a Luxury Collection Hotel, Kyoto 17 Ryouri Ryokan Karaku 19 rooms Direct 39 rooms FC TOKYO NARA 18 MAMPEI HOTEL 109 rooms Direct SHERATON Okinawa Sunmarina Resort THE WESTIN SENDAI THE TOKYO TORANOMON EDITION M MARRIOTT TOKYO COURTYARD Shin-Osaka Station IRAPH SUI, a Luxury Collection Hotel, 58 rooms FC BY MARRIOTT Miyako Okinawa 19 Gora-Kansuiro 14 rooms Direct SHISUI, a Luxury Collection Hotel, Nara 43 rooms FC 20 20 Karuizawa Marriott Hotel 142 rooms FC Hilton Sheraton Okinawa 13 OKINAWA SESOKO RESORT 246 rooms 21 FC Fuji Marriott Hotel Lake Yamanaka 105 rooms FC Sunmarina Resort Hilton Okinawa 22 14 298 rooms MC Izu Marriott Hotel Shuzenji 128 rooms FC Sesoko Resort Major Metropolitan Areas (Properties indicated in red are those owned by MORI TRUST REIT) Hilton Odawara 23 15 163 rooms MC Lake Biwa Marriott Hotel 274 rooms FC The Tokyo EDITION, Toranomon 206 rooms Resort & Spa MC Nanki-Shirahama 24 182 rooms FC Direct Directly operated by Mori Trust Group Marriott Hotel 2 CONRAD TOKYO 291 rooms MC FC Franchised 25 MC Under Management Contract Courtyard by Marriott Hakuba 72 rooms FC 3 The Westin Sendai 292 rooms FC LE Leased 26 Hotel Laforet Shuzenji 212 rooms Direct 4 Tokyo Marriott Hotel 249 rooms FC 27 5 Courtyard by Marriott Laforet Club Ito Onsen Yunoniwa 84 rooms Direct Tokyo Station 150 rooms FC Laforet Club Hakone 28 44 rooms Direct 6 Courtyard by Marriott Gora Yunosumika 332 rooms FC 29 Shin-Osaka Station 18 20 24 21 51718 29 Resort Hotel Laforet Nasu 118 rooms Direct Shangri-La Tokyo 200 rooms LE 15 24 19 28 8 Hotel Sunroute Plaza Shinjuku 624 rooms LE - 998 10 16 9 17 12 13 14 11 (Source) Prepared by the Asset Management Company based on the information of Mori Trust Group available as of August 31, 2023 (Note) Except for the assets owned as of August 31, 2023, there is no fact that MORI TRUST REIT has decided to acquire the properties listed above, or there is no guarantee that it can acquire them in the 32 future.#34Major Hotel Development Projects Underway by Mori Trust Group Development Capabilities Operation & Management Capabilities Strategic Investment Major Metropolitan Areas The Tokyo EDITION, Ginza Multiple new hotel development projects Major Metropolitan Areas The Tokyo EDITION, Ginza Hotel development plan in Tokyo World Gate AKASAKA Resort Areas Sapporo Odori Park Karuizawa Shiozawa Karuizawa Nagakura Karuizawa Shinonome Kanazawa Hirooka Hida Takayama Hakuba Sakka Hakone Nakagora Hakone Gora Laforet Hakone Gora Yunosumika Ayanokan Atami Kinomiya Kyoto Gion Hotel Indigo Nagasaki Glover Street Luxury Destination Network BATION Hotel development plan in Tokyo World Gate Akasaka THE TOKYO GINZA EDITION Resort Areas Hotel Indigo Nagasaki Glover Street Okinawa Fuchaku (Source) Prepared by the Asset Management Company based on the information of Mori Trust Group available as of August 31, 2023 (Note) Except for the assets owned as of August 31, 2023, there is no fact that MORI TRUST REIT has decided to acquire the properties listed above, or there is no guarantee that it can acquire them in the future. 33#35CONRAD 08 Appendix N COURTYARD Marrioll#36Acquisition of Properties Developed by a Sponsor (Additional Acquisition of Kamiyacho Trust Tower) Acquisition Highlight (Kamiyacho Trust Tower: Office area, 1.5 Floors) External Growth Using the Merger Effects • High Asset Potential Further Increase in Sponsor's Commitment . An additional purchase of Kamiyacho Trust Tower from the sponsor was achieved using the purchasing capacity created by a decrease in LTV due to the merger effect. Acquisition of property with exceptionally high asset potential built with the development capabilities of the sponsor, MORI TRUST LTV reduced through purchase of MTH's assets at market value LTV benchmark: 50.0% 50.0% 49.0% 47.9% 48.0% 48.0% 46.2% 47.0% 46.0% Strong commitment of the sponsor to New MTR returning to a growth path through maximum use of sponsor support 45.0% September 2022 FP After the Merger After asset to be acquired 37th and 38th fl.: residential floors 31st 36th fl.: hotel TORA NOMON EDITION Overview of Acquired Asset Overview of Kamiyacho Trust Tower (Block Name: Tokyo World Gate) Property name Kamiyacho Trust Tower (Office area, 1.5 floors) Floor Structure Location 4-Chome Toranomon, Minato-ku, Tokyo Use Office building, retail facilities, medical facilities, hotels, residences, etc. Number of 38 stories with 3 basement levels MORI TRUST CO., LTD. Month/year March 2020 floors Seller Acquisition price 23,700 million yen value of completion Acquisition date March 1, 2023 • • Appraisal 24,100 million yen (as of October 31, 2022) Stable, high occupancy of 99.3% (as of Aug. 31, 2023) Master lease agreement planned to be signed with the sponsor MORI TRUST Reduce the risk of vacancies and stabilize revenues by distributing profit and expenses for jointly operated sections from the 6th floor to the 30th floor, including this area, with unit owners according to their ownership shares. 3rd 30th fl.: office Tokyo Edition Toranomon is the first Edition property in Japan. Edition is the new- generation luxury hotel brand from Marriott International. The super large floors with a ceiling height of 2.9 meters and a reference floor area of more than 1,100 tsubo enable unique layouts and support the presentation of innovative office spaces. B3 2nd fl.: shops, restaurants, office lobby, parking area, etc. The architect, Dr. Kengo Kuma, was invited as a designer and created the office lobby as a space symbolizing Tokyo World Gate, a place for international business and interaction. 35#37Overall Status of Hotel Market On April 28, 2023, Japan completely lifted the requirement to present proof of vaccination or a negative test result when entering the country. With COVID-19 being reclassified as a "Class 5" disease on May 8, infection countermeasures are now at the discretion of businesses and individuals, and social and economic activities are returning to normal. On August 10, 2023, the government of China lifted its ban on group travel to 78 countries and regions around the world, including Japan, after around 3.5 years. Recently, the number of foreign visitors to Japan as a whole has recovered to about 85% of the equivalent month in 2019. Asia (excluding China) and the West have already surpassed 2019 levels, and China has also been progressing well since the start of the year as it heads toward a full recovery. Entry Restrictions etc. in Japan and China (After Mar. 2023) Changes in Number of Foreign Visitors to Japan vs. 2019 (Since January 2023) Date Entry Restrictions etc. in Japan and China 140% Mar. 1 JPN Switch to random screening tests for visitors 120% Chinese visitors) from China (conducted for at most 20% of all 100% 122.9% 107.7% Apr. 5 JPN Lifting of requirement for visitors from China to show proof of a negative test result 80% 85.6% 60% Apr. 28 JPN Lifting of requirement to show proof of 40% vaccination or negative test result for all travelers 20% May 8 JPN COVID-19 reclassified as "Class 5"; infection countermeasures at individual's discretion 0% Aug. 10 CHN Lifting of ban on group travel to 78 Jan-23 countries/regions worldwide, including Japan Total Europe and North America (Source) Japan National Tourism Organization (JNTO) (Note) The figures for July and August 2023 are estimates. Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 36.4% China Asia (excluding China) 36#3843rd FP Operating Results by Property (Year-on-Year Comparison) Shangri-La Tokyo (SL) Base month for rent Rent recording month Rent (million yen) Difference from the minimum guaranteed rent (million yen) MTH 13th FP (Operating period: Mar. 1, 2022 to Aug. 31, 2022) 2021 Nov. Dec. 2022 Jan. 13th Feb. Mar. Apr. Nov. Dec. 2023 Jan. 43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023) 2022 Feb. Mar. Apr. FP 43rd FP 2022 2023 total total Mar. 147 Apr. 109 May Jun. 66 50 Jul. 70 Aug. 86 Mar. 530 135 Apr. 185 May 125 Jun. 110 Jul. 175 Aug. 203 935 Hilton Odawara Resort & Spa (HO) MTH 13th FP (Operating period: Mar. 1, 2022 to Aug. 31, 2022) Base period for calculation of rent Jan. 2021 to Dec. 2021 Rent recording month 2022 Mar. Rent (million yen) 26 Apr. 26 May 26 Jun. Courtyard by Marriott Tokyo Station (CYT) Base month for rent Occupancy rate (%) Average daily rate (ADR) (yen) RevPAR (yen) Rent recording month Rent (million yen) Difference from the minimum guaranteed rent (million yen) 43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023) 13th Jan. 2022 to Dec. 2022 FP total 2023 Jul. 26 Aug. 26 Mar. 158 31 Apr. 31 May 31 26 *Total doesn't include other revenues. 43rd FP total Jul. Jun. Aug. 31 31 31 189 *Total doesn't include other revenues. MTH 13th FP (Operating period: Mar. 1, 2022 to Aug. 31, 2022) 2021 2022 13th FP 2023 Dec. Jan. Feb. 49.0% 38.7% 41.4% 13,869 12,477 13,409 14,254 6,794 4,827 5,552 7,023 Mar. 49.3% Apr. 54.0% 16,421 8,860 May avg. 57.6% 48.4% 16,254 14,443 9,359 7,071 Jan. Feb. 43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023) 2022 Dec. Mar. 2022 13th FP Mar. Apr. 0 May Jun. Jul. Aug. total Mar. 0 3 1 9 237 15 237 39 Apr. 39 May 39 Apr. May 76.8% 74.3% 79.1% 80.8% 77.3% 69.2% 76.2% 27,681 28,366 29,023 33,843 34,426 32,170 30,938 21,252 21,070 22,963 27,358 26,608 22,276 23,581 2023 43rd FP Aug. total 43rd FP avg. Jun. Jul. 63 56 39 278 Courtyard by Marriott Shin-Osaka Station (CYO) MTH 13th FP (Operating period: Mar. 1, 2022 to Aug. 31, 2022) Base month for rent Occupancy rate (%) Average daily rate (ADR) (yen) RevPAR (yen) Rent recording month Rent (million yen) Difference from the minimum guaranteed rent (million yen) 2021 2022 Dec. Jan. Feb. 46.4% 29.5% 33.1% 15,510 14,420 14,473 7,192 4,252 4,797 Mar. 38.0% 14,904 5,666 2022 13th FP Apr. May avg. 40.2% 42.8% 38.5% 15,320 15,434 15,020 6,160 6,603 5,800 13th FP 43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023) 2022 2023 Dec. Jan. Feb. Mar. 11 Apr. 0 May Jun. Jul. Aug. total Apr. May Mar. Apr. May 90.6% 65.2% 73.9% 82.8% 91.4% 81.8% 81.0% 20,118 18,016 19,205 21,073 22,207 20,656 20,359 18,230 11,749 14,197 17,450 20,303 16,892 2023 Mar. 43rd FP avg. 16,486 Jun. Jul. Aug. 0 5 4 8 378 29 378 59 27 19 58 72 59 43rd FP total 296 37#3943rd FP Operating Results by Property (Period-on-Period Comparison) Shangri-La Tokyo (SL) Base month for rent Rent recording month Rent (million yen) MTH 14th FP (Operating period: Sep. 1, 2022 to Feb. 28, 2023) 2022 14th May Jun. Jul. Aug. 2022 Sep. 2023 Oct. Nov. Dec. 2023 Jan. 43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023) 2022 Feb. Mar. Apr. FP 43rd FP 2023 total total Sep. 90 Oct. Nov. Dec. 80 84 77 Jan. 103 Feb. 126 Mar. 562 135 Apr. 185 May 125 Jun. 110 Jul. 175 Aug. 203 935 Difference from the minimum guaranteed rent (million yen) Hilton Odawara Resort & Spa (HO) MTH 14th FP (Operating period: Sep. 1, 2022 to Feb. 28, 2023) 43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023) Jan. 2022 to Dec. 2022 Base period for calculation of rent Jul. 2021 to Jun. 2022 14th Rent recording month Rent (million yen) 2022 Sep. 30 Oct. Nov. Dec. 2023 Jan. Feb. FP total 2023 30 30 30 30 *Total doesn't include other revenues. 30 184 Mar. Apr. 31 31 May 31 Jun. Courtyard by Marriott Tokyo Station (CYT) MTH 14th FP (Operating period: Sep. 1, 2022 to Feb. 28, 2023) 2022 14th FP Base month for rent Jun. Occupancy rate (%) Average daily rate (ADR) (yen) RevPAR (yen) 2022 Rent recording month Sep. Oct. Nov. Dec. Jul. Aug. Sep. Oct. Nov. avg. 73.6% 71.2% 61.5% 71.6% 82.4% 86.6% 74.4% 17,709 19,240 19,133 20,515 23,729 25,754 21,261 13,038 13,700 11,776 14,684 19,544 22,303 15,827 14th FP total 2023 Jan. Feb. Rent (million yen) 15 19 11 19 40 42 148 Difference from the minimum guaranteed 21 21 rent (million yen) 43rd FP total Jul. Aug. 31 31 31 189 *Total doesn't include other revenues. 43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023) 2022 2023 43rd FP Dec. Jan. Feb. Mar. Apr. May avg. 76.8% 74.3% 79.1% 80.8% 77.3% 69.2% 76.2% 27,681 28,366 29,023 33,843 34,426 32,170 30,938 21,252 21,070 22,963 27,358 26,608 22,276 23,581 2023 Mar. 39 Apr. 39 May 39 Jun. Jul. 63 56 43rd FP Aug. total 39 278 Courtyard by Marriott Shin-Osaka Station (CYO) MTH 14th FP (Operating period: Sep. 1, 2022 to Feb. 28, 2023) 2022 Base month for rent Jun. Occupancy rate (%) Average daily rate (ADR) (yen) RevPAR (yen) 2022 Jul. Aug. Sep. Oct. 49.6% 49.5% 43.6% 52.8% 67.7% 15,048 15,971 15,893 16,017 17,316 7,457 7,898 6,931 8,453 11,715 2023 14th FP Nov. avg. 89.7% 58.7% 18,242 16,672 16,363 9,787 2023 Jan. Feb. Rent recording month Sep. Oct. Nov. Dec. Jan. Feb. 14th FP total Rent (million yen) 11 10 6 11 31 51 123 59 Apr. 27 May 90.6% 65.2% 73.9% 82.8% 91.4% 20,118 18,016 19,205 21,073 22,207 18,230 11,749 14,197 17,450 20,303 2023 Mar. 43rd FP (Operating period: Mar. 1, 2023 to Aug. 31, 2023) 2022 Dec. 43rd FP May avg. 81.8% 81.0% Mar. Apr. 20,656 20,359 16,892 16,486 43rd FP Jun. Jul. Aug. total 19 58 72 59 296 Difference from the minimum guaranteed 34 34 rent (million yen) 38#40Performance of Hilton Odawara Resort & Spa In the accommodation sector, the recovery trend in domestic leisure demand due to the reclassification of COVID- 19 as Class 5 was leveraged and sales at high unit prices continued, centering on holidays (spring holidays, Golden Week, O-Bon, year-end), to raise revenues. On the other hand, due to the gradual ending of the nationwide travel discount program, improving weekday occupancy rates is an issue, and we are seeking to increase volume by attracting group guests and inbound travelers. In the restaurant and leisure sectors, due to the improvement in consumer sentiment, the number of non-staying guests eating lunch or the dessert buffet and using the pool or natural hot spring is trending upward, which is contributing to the hotel's performance. Change in Major Indicators (Year-on-Year Comparison) Rent for 43rd FP (Note 1) Base period for (Million yen) 600 500 400 300 200 100 calculation of rent Rent recording Jan. 2022 to Dec. 2022 2023 month Rent (million yen) Mar. 31 Apr. 31 May Jun. 31 31 Jul. 31 Aug. 31 Rent for 44th FP Base period for Jul. 2022 to Jun. 2023 calculation of rent Rent recording month Rent (million yen) 2023 Sep. 31 2024 Oct. 31 Nov. Dec. Jan. 31 31 31 Feb. 31 【Reference] Base period for calculation of rent Odd fiscal periods (fiscal periods ended/ending in Aug.): 12 months from January to December in the previous year Even fiscal periods (fiscal periods ended/ending in Feb.): 12 months from July in the previous year to June in the relevant year Year Month 2022 2023 2024 12 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12 1 2 MORI TRUST Hotel Reit, Inc. MORI TRUST REIT, Inc. 13th FP 43rd FP 14th FP 43rd FP profits (12-month average) 44th FP Fiscal Period 12th FP 0 Base period for calculation of rent Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Rent Total Sales (Note2) 2019 ■2020 ■2021 ■2022 ■2023 (Note 1) "Rent" shows the value calculated based on the rent calculation method in the lease contract, rounded down to the nearest million yen. (Note 2) "Total sales" is the total amount of sales for the entire hotel (including the interest of the quasi-co-owner MORI TRUST), rounded down to the nearest million yen. 44th FP profits (12-month average) Rent for 43rd FP Rent for 44th FP 39#41Performance of Courtyard by Marriott Tokyo Station The accommodation sector is maintaining its high unit-price strategy by attracting customers primarily via Marriott.com, with high-budget foreign business travelers as the main target. (Reference) Share of foreign guests in the total number of guests Apr. May Jun. Jul. Aug. 68.2% 2023 73.4% 64.2% 65.5% 70.6% Going forward, the issue will be increasing occupancy rates, including attracting foreign and domestic leisure guests, while maintaining a high ADR. In the food and beverage sector, sales of BBQ plans utilizing terrace seating and free-flow plans led to a steady recovery, with average customer spend reaching a level exceeding 2019. Change in Major Indicators (Year-on-Year Comparison) 43rd FP avg. (Yen) (Million yen) Occupancy rate 76.2% 30,000 90 75 ज ४ जे 8 जै 8 Average daily rate (ADR) 30,938 yen 60 45 30 0 888388531 25,000 RevPAR 23,581 yen 20,000 Base Dec. Jan. Feb. Mar. Apr. May Jun. Jul. month for rent 2023 Rent recording Mar. Apr. May Jun. Jul. Aug. Sep. Oct. month 43rd FP of MORI TRUST REIT, Inc. Rent for the same month of 2019 (left axis) Rent (left axis) RevPAR for the same month of the previous year (right axis) Rent for the same month of the previous year (left axis) RevPAR for the same month of 2019 (right axis) RevPAR (right axis) 43rd FP (actual) (Difference from minimum guaranteed rent) 43rd FP (forecast) (As of Apr. 2023) Change 43rd FP total 278 mn yen 278 mn yen - mn yen 240 mn yen (Note 1) In "Rent," difference from the minimum guaranteed rent is not included. "Rent" refers to the total amount of rent for the entire trust beneficiary interest regardless of changes in the percentage of quasi-co-ownership interest in the trust beneficiary interest owned by MORI TRUST REIT. 15,000 Rent 10,000 5,000 (Rent) 0 Aug. Nov. 37 mn yen 40#42Performance of Courtyard by Marriott Shin-Osaka Station Regarding ADR, while continuing the high unit-price strategy focusing on individual customers, proactive efforts to attract group customers supported the occupancy rate. Inbound travel is increasing for not only leisure but also business use by foreign-affiliated companies. Although the majority of visitors are from the U.S., use from mainland China (mainly individual visitors) has been on the rise recently and is now second in volume only to the U.S. (Reference) Apr. 2023 May Jun. Jul. Aug. Share of foreign guests in the total number of guests 67.2% 52.5% 61.3% 54.3% 43.2% Change in Major Indicators (Year-on-Year Comparison) 43rd FP avg. (Yen) (Million yen) Occupancy rate 81.0% 30,000 90 75 60 25,000 Average daily rate (ADR) 20,359 yen 20,000 RevPAR 16,486 yen 15,000 45 Rent 10,000 30 5,000 15 (Rent) 0 0 Base Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. month for rent 2023 Rent recording Mar. Apr. Μαγ Jun. Jul. Aug. Sep. Oct. Nov. month 43rd FP of MORI TRUST REIT, Inc. 43rd FP (actual) (Difference from minimum guaranteed rent) 43rd FP (forecast) (As of Apr. 2023) (Rent) (Difference from minimum guaranteed rent) 43rd FP total 296 mn yen 296 mn yen mn yen 298 mn yen 244 mn yen 53 mn yen Rent for the same month of 2019 (left axis) Rent (left axis) RevPAR for the same month of the previous year (right axis) Rent for the same month of the previous year (left axis) RevPAR for the same month of 2019 (right axis) RevPAR (right axis) Change (Change of rent) -1 mn yen 51 mn yen (Note 1) In "Rent," difference from the minimum guaranteed rent is not included. 41#43[Reference] Timing of Compensating for the Difference from the Minimum Guaranteed Rent 2022 2023 2024 2025 1 2 3 4 5 6 7 8 9 10 11 12 1 2 MORI TRUST Hotel Reit, Inc. 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 MORI TRUST REIT, Inc. 8 9 10 11 12 1 2 3 Fiscal period 13th FP 14th FP 43rd FP 44th FP 45th FP 46th FP Shangri-La Base month for rent (Linked to hotel total revenue) (i) (ii) (ii) (iv) | (v) | (vi) (i) (ii) (iii) (iv) (v) | (vi) (i) | (1) | (iii) (iv) | (v) | (vi) (i) (ii) (iii) (iv) | (v) | (vi)| (i) | (ii) | (ii) (iv)|(v) | (vi) Recorded difference in guaranteed minimum rent (11/12-month equivalent) Recorded difference (1/12-month equivalent) A A Recorded difference in guaranteed minimum rent (11/12-month equivalent) A (i) (ii) (iii) (iv) (v) (vi) (i) (ii) (iii) (iv) | (v)|(vi) (i) (ii) (iii) (iv) | (v) | (vi) (i) (ii) | (iii) | (iv) | (v) | (vi) (i) (ii) (ii) (iv)| (v) (vi) Timing of receiving difference in guaranteed minimum rent Total rent for 12 months: 882,700,000 yen Timing of receiving difference in guaranteed minimum rent ↑ Recorded difference (1/12-month equivalent) Rent variable (monthly) Criteria for applying minimum guaranteed rent CY Tokyo Base month for rent (Linked to hotel profit) (93.5% quasi-co-ownership interest) Rent variable (monthly) Criteria for applying minimum guaranteed rent CY Shin-Osaka Base month for rent (Linked to hotel profit) Rent variable (monthly) Criteria for applying minimum guaranteed rent Base period for Hilton Odawara calculation of rent (Linked to hotel profit) | | (iii)|(iv) (i) (ii) (ii) (iv)| (v) | (vi) (i) (ii) (iii) (iv)| (v)|(vi) (i) (ii) (iii) (iv)| (v) | (vi)| (i) | (ii) (iii)| (iv)| (v)| (vi) (i) (ii) (iii) (iv) | (v) | (vi) | Recorded difference in guaranteed minimum rent (11/12-month equivalent) Recorded difference (1/12-month equivalent) Recorded difference in guaranteed minimum rent (11/12-month equivalent) A Recorded difference (1/12-month equivalent) (i) (ii) (iii) (iv) | (v) (vi) (i) (ii) (iii) (iv) | (v) | (vi) (i) (ii) (ii) (iv)| (v) | (vi) | (i)|(11) (ii) (iv) | (v) (vi)|(i)|(ii) (iii) (iv)| (v) (vi)| Timing of receiving difference in guaranteed minimum rent 个 Timing of receiving difference in guaranteed minimum rent Total rent for 12 months: 310,000,000 yen (Note 1) | | (i) (ii) (iii) (iv) | (v) | (vi)| (1) | (ii) (iii) (iv) | (v) (vi) (i) (ii) (iii) (iv)| (v)| (vi) (i) (ii) (ii) (iv) | (v) (vi) (i) | (ii) | (iii) | (iv)| (v) (vi) | | (v)|(vi)|| (i) Recorded difference in guaranteed minimum rent (11/12-month equivalent) Recorded difference (1/12-month equivalent) Recorded difference in guaranteed minimum rent (11/12-month equivalent) A Recorded difference (1/12-month equivalent) A (i) (ii) (ii) (iv) (v) (vi) (i) (ii) (ii) (iv)| (v) (vi) (i) (ii) (iii) (iv)| (v) | (vi) | (i) | (ii) | (iii) (iv) | (v) | (vi) (i) (ii) (iii) (iv) | (v)|(vi)| Timing of receiving difference in guaranteed minimum rent Total rent for 12 months: 460,000,000 yen (ii) Timing of receiving difference in guaranteed minimum rent ^ (iv) (iii) (i) (50% quasi-co-ownership interest) *Rent varies each fiscal period Rent (The monthly amount is fixed during a fiscal period.) (i) (i) () ) (1) (1) (1) (1) (1) (1) (11) (ii) (ii) (i) (ii) (ii) (ii) (iii) (iv) (iv) (iv) (iv) (iv) (iv) (Note 1) The amount of compensation under the minimum rent guarantee scheme is calculated by subtracting the sum of the rent for the period of 12 months from October each year to September the following year (including the potion attributable to the quasi-co-owner MORI TRUST) from the minimum guaranteed rent of 310,000,000 yen for such period in accordance with the provisions of the lease agreement (the difference calculated by such a calculation method is referred to as the "Difference from the minimum guaranteed rent"), and the Difference from the minimum guaranteed rent recorded on or after September 1, 2022 includes the portion attributable to the quasi-co-owner MORI TRUST. Only 93.5%, which is the quasi co-ownership interest in the property, of the entire Difference from the minimum guaranteed rent recorded on or after September 1, 2022 is recorded as operating income of MORI TRUST REIT. 42#44Balance Sheets (43rd FP Ended August 2023) As of February 28, 2023 As of August 31, 2023 As of February 28, 2023 Thousands of yen As of August 31, 2023 Assets Current assets Cash and deposits Cash and deposits in trust Operating accounts receivable 14,729,422 2,413,662 16,376,466 4,894,721 Liabilities Current liabilities Operating accounts payable 220,285 Short-term loans payable 6,000,000 725,716 10,000,000 Accounts receivable other 97,513 28 130,318 Current portion of investment corporation bonds 3,000,000 3,000,000 12 Current portion of long-term loans payable 15,000,000 42,500,000 Prepaid expenses 55,631 Consumption tax refund receivable 72,178 130,928 Accounts payable - other 349,524 Other 64,915 23,140 Total current assets 17,361,173 21,627,766 Non-current assets Property, plant and equipment Buildings 16,440,150 16,051,438 Structures 30,561 Machinery and equipment 22,955 29,526 36,087 Accrued expenses Dividends payable Income taxes payable Accrued consumption taxes Advances received Deposits received Total current liabilities 444,375 67,657 569,221 7,955 9,387 718 10,575 61,744 814,808 214 25,899,627 1,251,425 38,818 58,172,803 Non-current liabilities 0 0 Vehicles 165 Investment corporation bonds 11,000,000 Tools, furniture and fixtures 23,567 Land Buildings in trust 109,001,394 21,422,932 65,405 103,417,452 44,498,437 Long-term loans payable 117,500,000 11,000,000 158,000,000 Tenant leasehold and security deposits Tenant leasehold and security deposits in trust Structures in trust 68,264 140,821 Deferred tax liabilities 7,698,469 943,131 631,732 12,799,156 959,194 Machinery and equipment in trust 59,579 100,843 Other Tools, furniture and fixtures in trust 32,860 52,909 Total non-current liabilities Land in trust 157,795,399 286,365,778 Total liabilities 9 137,773,333 163,672,960 182,758,360 240,931,164 Total property, plant and equipment 304,897,665 450,758,867 Intangible assets Goodwill Software 613,524 Other Total intangible assets 2,232 240 240 240 615,997 Net assets Investments and other assets Guarantee deposits 10,000 Deferred tax assets 20,000 875 Unitholders' equity Unitholders' capital Surplus 153,990,040 153,990,040 Capital surplus 69,736,000 Long-term prepaid expenses Other Total investments and other assets 57,897 2,815 70,713 103,802 Voluntary retained earnings 2,815 Reserve for reduction entry 1,121,637 1,376,341 Total non-current assets 304,968,618 127,492 451,502,357 Total voluntary retained earnings 1,121,637 1,376,341 Unappropriated retained earnings 3,614,104 7,157,734 Deferred assets Total surplus 4,735,741 78,270,076 Investment corporation bond issuance costs Total deferred assets Total assets 68,950 68,950 61,156 322,398,742 61,156 473,191,280 Total unitholders' equity 158,725,781 232,260,116 Total net assets Total liabilities and net assets 158,725,781 232,260,116 322,398,742 473,191,280 43#45Statements of Income and Retained Earnings (43rd FP Ended August 2023) Statements of Income For the period from October 1, 2022 to February 28, 2023 Operating revenue Lease business revenue Other lease business revenue Gain on sale of investment property Total operating revenue Operating expenses Expenses related to rent business Asset management fee Asset custody fee Administrative service fees Directors' compensations merger-related expenses Goodwill amortization Other operating expenses 5,620,653 207,435 1,430,579 1,437,186 7,258,668 11,812,092 Thousands of yen For the period from March 1, 2023 to August 31, 2023 10,113,102 261,802 (Breakdown of Real Estate Leasing Business Income) A. Rental revenues Lease business revenue Rent Common charges Land leasing revenues For the period from October 1, 2022 to February 28, 2023 Thousands of yen For the period from March 1, 2023 to August 31, 2023 9,755,149 5,321,121 196,524 234,344 103,007 123,609 Other lease business revenue 207,435 261,802 2,710,417 3,382,852 Total rental revenues 5,828,088 10,374,905 275,258 749,387 B. Property-related expenses 10,829 16,155 Property management expenses 50,842 69,609 3,000 3,600 Property management fees 600,789 741,024 Utilities 211,827 253,324 61,360 250,000 15,731 Property and other taxes 879,362 1,202,202 88,983 136,137 Casualty insurance 16,235 26,730 Total operating expenses 3,200,691 4,623,473 Repair expenses 62,957 130,971 Operating income Non-operating income Interest income 4,057,976 7,188,618 Depreciation and amortization 914,440 996,640 Other expenses 24,805 31,958 Total property-related expenses 2,710,417 3,382,852 94 94 C. Profit and losses from real 3,117,671 6,992,053 Reversal of dividends payable 647 918 estate rental business (A-B) Interest on refund 89 Total non-operating income 741 1,102 Non-operating expenses Interest expenses 291,515 594,518 Interest expenses on bonds investment corporation 24,397 38,941 Amortization of investment corporation bond 7,679 7,794 other 3,376 12,741 Total non-operating expenses 326,968 653,996 Ordinary income 3,731,749 6,535,724 Profit before income taxes 3,731,749 6,535,724 Income taxes - current 732 Income taxes - deferred Total income taxes Profit 116,912 117,644 10,590 632,600 - 622,010 3,614,104 Unappropriated retained earnings 3,614,104 7,157,734 7,157,734 44#46Statement of Cash Distributions / Statements of Cash Flows (43rd FP Ended August 2023) Statement of Cash Distribution I. Unappropriated retained earnings II. Distribution amount (Distribution amount per unit) III. Voluntary retained earnings Provision of reserve for reduction entry IV. Retained earnings carried forward For the period from October 1, 2022 to February 28, 2023 Statements of Cash Flows (Yen) For the period from March 1, 2023 to August 31, 2023 3,614,104,524 3,359,400,000 (2,545) 7,157,734,912 6,052,000,000 (1,700) Depreciation Cash flows from operating activities Profit before income taxes Goodwill amortization Amortization of investment corporation bond issuance costs Interest income 254,704,524 1,105,734,912 Interest expenses Decrease (Increase) in operating accounts receivable Increase (Decrease) in operating accounts payable Decrease (Increase) in consumption taxes refund receivable Increase (Decrease) in accrued consumption taxes Increase (Decrease) in advances received Decrease due to sale of investment property Other, net Subtotal Interest income received Interest expenses paid Income taxes paid Net cash provided by operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of property, plant and equipment in trust Purchase of intangible assets Repayments of tenant leasehold and security deposits Proceeds from tenant leasehold and security deposits Repayments of tenant leasehold and security deposits in trust Proceeds from tenant leasehold and security deposits in trust Net cash used in investing activities Cash flows from financing activities Net increase (decrease) in short-term loans payable Proceeds from long-term loans payable Repayments of long-term loans payable Proceeds from issuance of investment corporation bonds Redemption of investment corporation bonds Payments for investment corporation bond issuance costs Dividends paid Net cash used in financing activities Net increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning of period Net increase (decrease) in cash and cash equivalents due to merger Cash and cash equivalents at end of period For the period from October 1, 2022 to February 28, 2023 3,731,749 914,440 7,679 - 94 315,912 - 19,978 - 10,954 - 172,139 5,584 5,829,179 73,655 10,675,035 94 - 348,757 - 881 10,325,489 - 16,911 - 5,405,860 - 122,170 184,460 - 8,391 37,476 5,331,397 6,000,000 - 8,500,000 3,000,000 - 4,000,000 - 15,045 - 3,960,117 - 7,475,163 - 2,481,070 19,624,156 17,143,085 Thousands of yen For the period from March 1, 2023 to August 31, 2023 6,535,724 996,640 15,731 7,794 - 94 633,460 - 32,805 504,944 - 129,917 - 61,744 29,598 5,822,521 - 68,973 14,252,880 94 - 625,255 - 1,495 13,626,223 - 370,239 - 29,341,494 - 1,334 - 186,227 772,650 - 7,955 19,938 29,114,663 - 1,475,000 32,500,000 - 13,000,000 - 2,600 - 4,069,618 13,952,781 - 1,535,658 17,143,085 5,663,761 21,271,188 45#47Changes in Indicators Period ended September 2021 Period ended March 2022 Period ended September 2022 Period ended February 2023 Period ended August 2023 |(39th fiscal period) (40th fiscal period) (41st fiscal period) (42nd fiscal period) (43rd fiscal period) Formula (Unit million yen) Operating revenues Gain on sale of real estate Operating expenses 9,202 8,528 6,902 7,258 11,812 1,433 1,452 1,430 1,437 3,638 3,486 3,474 3,200 4,623 Operating income 5,563 5,042 3,428 4,057 7,188 Ordinary income 5,205 4,685 3,043 3,731 6,535 Profit 5,041 4,537 3,331 3,614 7,157 Total distribution 4,686 4,217 3,960 3,359 6,052 Total assets 328,288 325,071 325,909 322,398 473,191 Interest-bearing liabilities 155,000 154,000 156,000 152,500 224,500 Total net assets 160,106 159,957 159,071 158,725 232,260 Unrealized gain/loss 35,092 39,124 44,033 43,922 41,648 NAV 190,512 194,864 199,144 199,288 Profits from real estate rental business 4,615 4,051 3,844 3,117 267,856 NAV = Total net assets + Unrealized gain/loss - Total distribution 6,992 Depreciation and amortization 1,113 1,125 1,116 914 996 ΝΟΙ 5,729 5,177 4,960 4,032 7,988 FFO Capital improvements Net cash flows 4,721 4,211 4,447 3,097 6,717 NOI Profits from real estate rental business + Depreciation and amortization FFO = Profit + Depreciation and amortization - Gain/loss on sale of real estate 287 213 96 373 320 5,442 4,963 4,864 3,658 7,668 NCF = NOI - Capital improvements LTV ratio investment units Distribution per unit Total net assets per unit ROA (annualized) ROE (annualized) Total number of outstanding 3.2% 2.9% 1.9% 2.8% 6.3% 5.7% 4.2% 5.5% 47.2% 47.4% 47.9% 47.3% 2.8% ROA = (Ordinary income / Total assets) / 6 x 12 * Annualized 6.2% ROE (Profit / Total net assets) / 6 × 12 * Annualized 47.4% LTV = Interest-bearing liabilities/Total assets 2,640,000 units 2,640,000 units 2,640,000 units 2,640,000 units 3,560,000 units NAV per unit FFO per unit 1,775 yen 1,597 yen 1,500 yen 60,646 yen 60,590 yen 60,254 yen 1,272 yen 60,123 yen 1,700 yen 65,241 yen 72,163 yen 73,812 yen 75,433 yen 1,788 yen 1,595 yen 1,684 yen 75,488 yen 1,173 yen 75,240 yen 1,886 yen *Various Indicators per unit and total number of outstanding investment units take into account the split of investment units (at the ratio of 1 to 2 units) on March 1, 2023, and figures prior to March 1, 2023 are revised accordingly. 46#48per unit Distribution LTT Changes in Asset Size, LTV and Distribution Per Unit October 2013 (yen) Capital increase 2,482 through public offering 2,265 1,963 1,783 1,778 1,785 1,950 1,977 1,960 1,723 1,801 1,825 1,524 1,760 (Loan To Value ratio) Asset size 53.7% 48.4% 48.6% 47.2% 48.8% 48.5% 49.6% 46.2% 21.5% (Billion yen) (Total acquisition price of properties owned at the end of the fiscal period) 500.0 450.0 400.0 350.0 300.0 250.0 7 properties 200.0 107.2 Billion 150.0 yen 100.0 50.0 0.0 Period ended Mar. 2004 (4th FP) Period ended Mar. 2012 (20th FP) 48.2% 48.0% 46.4% 48.0% 47.2% 1,825 47.1% 1,833 47.2% 1,854 1,916 1,775 1,892 1,937 47.2% 47.1% 47.1% 47.5% 47.2% March 2023 Merger with MORI TRUST Hotel Reit, Inc. 1,500 1,700 1,597 47.4% 1,272 47.9% 47.4% 47.3% 22 properties 470.1 Billion yen Period ended Sep. 2014 (25th FP) Period ended Mar. 2017 (30th FP). Sold Ginza MTR Building (Remaining co-owned interest: 50%) Acquired Midosuji MTR Building Sold Osaka Marubeni Building Acquired Kioicho Building Partially sold Ginza MTR Building Disposed Mita MT Building Additionally acquired Osaki MT Building Acquired Hiroo MTR Building Sold Ito-Yokado Shin-Urayasu Period ended Sep. 2019 (35th FP). Acquired Kamiyacho Trust Tower Partially sold Tokyo Shiodome Building Period ended Mar. 2022 (40th FP) Period ended Aug. 2023 ( 43rd FP) Acquired Sendai MT Building Partially sold Shinbashi Ekimae MTR Building Additionally Acquired Kamiyacho Trust Tower Partially sold Tokyo Shiodome Building Additionally Acquired Kamiyacho Trust Tower Acquired Sendai MT Building Partially sold Shinbashi Ekimae MTR Building 47 Acquired SHIBUYA FLAG Acquired Kohnan Sagamihara-Nishihashimoto Partial disposal of Frespo Inage Acquired Tenjin Prime#49Portfolio List (As of August 31, 2023) Use etc. Property Name Location Hotel grade Construction completion Asset size (million yen) (Note1) Appraisal value (million yen) Leasable area (Note 1) Tokyo Shiodome Building (Hotel: Conrad Tokyo) Kamiyacho Trust Tower ON Building Kioicho Building Sendai MT Building Minato Ward, Tokyo (Luxury) Jan. 2005 82,539 81,600 71,806.84 m Minato Ward, Tokyo Shinagawa Ward, Tokyo Mar. 2020 51,660 56,400 13,479.44 m Nov. 1990 39,900 35,300 20,654.60 m Chiyoda Ward, Tokyo Nov. 1989 34,300 38,400 24,748.48 m Miyagino Ward, Sendai Mar. 1999 10,533 10,500 26,006.82 m Office Osaki MT Building Shinagawa Ward, Tokyo Jul. 1994 14,386 17,600 24,495.21 m Midosuji MTR Building Chuo Ward, Osaka Mar. 1999 10,170 10,700 15,129.16 m Core Assets Hiroo MTR Building Tenjin Prime Shibuya Ward, Tokyo Nov. 1992 8,100 8,420 4,946.36 m Chuo Ward, Fukuoka Oct. 2008 7,050 10,100 5,990.40 m Hotel Shin-Yokohama TECH Building Sub total Shangri-La Tokyo Hilton Odawara Resort & Spa Hotel Okura Kobe Courtyard by Marriott Tokyo Station Courtyard by Marriott Shin-Osaka Station Hotel Sunroute Plaza Shinjuku Sub total Chiyoda Ward, Tokyo Odawara City, Kanagawa Chuo Ward, Kobe Kohoku Ward, Yokohama Feb. 1986 6,900 8,600 18,117.03 m 265,539 277,620 225,374.34 m Luxury Nov. 2008 49,200 49,600 22,755.55 m Upper upscale Oct. 1997 (Note 2) 7,100 7,150 25,302.83 m Upper upscale Mar. 1989 19,000 16,900 72,246.86 m Chuo Ward, Tokyo Upscale Feb. 2014 17,017 17,017 5,255.05 m Yodogawa Ward, Upscale Mar. 1997 17,400 17,500 13,881.47 m Osaka Shibuya Ward, Tokyo Upper midscale Aug. 2007 32,500 32,400 21,248.23 m 142,217 140,567 160,689.99 m SHIBUYA FLAG Shibuya Ward, Tokyo Ito-Yokado Shonandai Fujisawa City, Aug. 2009 32,040 41,700 5,983.86 m Nov. 2002 11,600 11,700 Others Retail facility Kohnan Sagamihara- Nishihashimoto Kanagawa Midori Ward, Sagamihara 53,393.66 m Aug. 2005 7,460 6,620 40,283.77 m Inage Ward, Frespo Inage Chiba - (Note 3) 2,100 2,600 39,556.71 m Shinbashi Ekimae MTR Building Minato Ward, Tokyo Apr. 1999 6,000 7,270 2,685.00 m Residential Park Lane Plaza Shibuya Ward, Tokyo Jun. 1988. 3,200 4,330 Sub total 62,400 74,220 4,443.03 m 146,346.03 m 48 (Note) The usage of a property with more than one use is determined based on the main use of the building#50Appraisal Values of Portfolio Properties at the Fiscal Period-End (As of August 31, 2023) End-of-period book value End-of-period appraisal value Direct reduction method Name Acquisition price Cap rate 2023 Period Period Period ended Feb. ended Aug. ended Feb. ended Aug. Difference 2023 2023 2023 Period Period ended Feb. ended Aug. 2023 Period 2023 Comparison with the previous fiscal period Discounted cash flow (DCF) method (Million yen) Appraiser Discount rate Terminal cap rate (Note 5) Tokyo Shiodome Building 82,539 74,666 74,591 81,400 81,600 200 3.2% 3.1% -0.1% 3.0% 3.1% Richi Appraisal Kamiyacho Trust Tower (Note 1) 51,660 27,863 51,507 32,300 56,400 24,100 2.5% 2.5% 2.4% 2.6% Daiwa Real Estate (Deducting the amount equivalent to the additional acquisition on March 1,2023) (32,300) (-) ON Building Kioicho Building Sendai MT Building 39,900 38,735 38,696 36,200 35,300 -900 3.3% 3.3% 3.0% 3.4% Japan Real Estate 34,300 32,885 32,881 38,400 38,400 3.1% 3.1% 2.9% 3.3% Daiwa Real Estate (Note 2) 10,533 5,297 10,619 5,270 10,500 5,230 4.5% 4.5% 4.3% 4.7% Daiwa Real Estate (Deducting the amount equivalent to the additional acquisition on August 31,2023) Osaki MT Building Midosuji MTR Building Hiroo MTR Building Tenjin Prime Shin-Yokohama TECH Building Subtotal (5,250) (-20) 14,386 12,841 12,870 17,800 17,600 -200 3.2% 3.2% 2.9% 3.3% Japan Real Estate 10,170 9,839 9,819 11,100 10,700 -400 3.5% 3.5% 3.3% 3.7% Daiwa Real Estate 8,100 8,316 8,309 8,420 8,420 3.6% 3.6% 3.4% 3.8% Daiwa Real Estate 7,050 6,635 6,611 10,200 10,100 -100 3.6% 3.4% -0.2% 3.2% 3.5% Japan Real Estate 6,900 6,595 6,550 8,440 8,600 160 4.5% 4.3% -0.2% 4.1% 4.6% Chuo-Nittochi 265,539 223,676 252,457 249,530 277,620 28,090 Shangri-La Tokyo 49,200 49,140 Hilton Odawara Resort & Spa 7,100 7,120 49,600 7,150 49,600 3.2% 3.2% 2.9% 3.4% Japan Real Estate 7,150 4.7% 4.7% 4.5% 4.8% Richi Appraisal Hotel Okura Kobe 19,000 15,238 15,182 16,900 16,900 4.9% 4.9% 4.7% 5.0% Richi Appraisal Courtyard by Marriott Tokyo Station 17,017 16,980 17,017 17,017 3.7% 3.7% 3.4% 3.9% Japan Real Estate Courtyard by Marriott Shin-Osaka Station 17,400 17,352 17,500 17,500 4.2% 4.2% 3.9% 4.4% Japan Real Estate Hotel Sunroute Plaza Shinjuku Subtotal SHIBUYA FLAG Ito-Yokado Shonandai Kohnan Sagamihara-Nishihashimoto Frespo Inage 32,500 142,217 15,238 32,040 32,374 32,447 138,224 32,352 32,400 32,400 3.5% 3.5% 3.3% 3.7% Japan Real Estate 16,900 140,567 123,667 41,100 41,700 600 3.2% 3.1% -0.1% 2.9% 3.2% Japan Real Estate 11,600 9,619 9,587 11,700 11,700 5.3% 5.3% 5.0% 5.5% Japan Real Estate 7,460 7,048 7,037 8,190 6,620 -1,570 5.4% 4.6% -0.8% 4.0% 4.5% Japan Real Estate (Note 3) 2,100 2,193 2,193 2,610 2,600 -10 - (Note 3) - (Note 3) 7.9% - (Note 3) Japan Real Estate Shinbashi Ekimae MTR Building (Note 4) 6,000 11,658 5,821 14,500 7,270 -7,230 3.6% 3.6% 3.4% 3.8% Chuo-Nittochi (Deducting the amount equivalent to the applicable sale on August 31,2023) Park Lane Plaza Subtotal Total 3,083 60,076 (7,250) 4,290 82,390 348,820 (20) 4,330 74,220 492,407 3,200 3,088 62,400 65,982 470,156 304,897 450,758 Period Unrealized gain or loss Period Difference 2023 43,922 2023 41,648 -2,274 Total ended Feb. ended Aug. (Note) Cap rate for the period ended Feb. 2023 for properties owned by former MORI TRUST Hotel Reit, Inc. (the 5 hotel properties other than Hotel Okura Kobe), information has been indicated by referring to its fiscal period ended February 2023. 40 3.3% 3.3% 3.9% 3.0% Chuo-Nittochi -8,170 143,587 Use Office Core Assets Hotel Retail Facility Others Residential 19 49#51Changes in Occupancy Rate Monthly Occupancy Rates for Each Use Category (from end of previous period to end of current period) (Period ended (Period ended Use Office Core Assets Master lease basis (Sublease basis) Feb. 2023) Feb. 28, 2023 97.6% Mar. 31, 2023 Apr. 30 2023 May 31, 2023 Jun. 30, 2023 Jul. 31, 2023 Aug. 2023) Aug. 31, 2023 (87.1%) 98.0% (89.8%) 98.4% (90.1%) 98.7% (93.6%) 98.7% (93.6%) 98.6% (95.6%) 98.7% (95.8%) Hotel Other Retail Facility and Residential 100% 96.3% 100% 100% 100% 100% 100% 100% 96.3% 96.3% 96.3% 96.2% 96.3% 98.1% Master lease basis Total (Sublease basis) 97.6% (93.1%) 98.1% (95.3%) 98.3% (95.4%) 98.4% (96.6%) 98.4% (96.6%) 98.4% (97.3%) 98.9% (97.9%) Use Name September 30, 2021 (End of 39th fiscal period) Tokyo Shiodome Building 100% Kamiyacho Trust Tower (Note 2) 100% ON Building 100% 89.7% Kioicho Building (Note 3) (89.7%) Sendai MT Building (Note 4) Osaki MT Building (Note 5) 100% (85.8%) Property-Related Occupancy Rate (Most Recent 5 Fiscal Periods) Office March 31, 2022 (End of 40th fiscal period) 100% (61.3%) September 30, 2022 (End of 41st fiscal period) 100% (66.5%) 100% (99.3%) February 28, 2023 (End of 42nd fiscal period) 100% (70.8%) 100% (99.3%) 100% August 31, 2023 (End of 43rd fiscal period) 100% (95.8%) 100% (99.3%) 100% 97.9% (97.4%) 100% (99.1%) 100% 100% (99.3%) 100% 100% 96.3% 94.5% 97.8% (95.6%) (92.6%) 100% 100% (95.2%) 100% Midosuji MTR Building (Note 6) (100%) (100%) 100% (95.6%) 100% (96.4%) (95.6%) 100.0% (99.9%) 100% (88.3%) 100% (100%) (85.2%) 100% (100%) Hiroo MTR Building (Note 7) 87.5% 87.5% 100.0% 92.4% 92.4% Tenjin Prime 100% 100% 100% 100% 100% Hotel Retail Facility Residential Shin-Yokohama TECH Building Subtotal (Note 8) Subtotal SHIBUYA FLAG Ito-Yokado Shonandai 100% 59.9% 71.7% 78.0% 89.1% 98.4% 95.4% 96.6% (80.6%) (81.8%) (84.6%) 97.6% (87.1%) 98.7% (95.8%) 100% 100% 100% 100% 100% 92.2% 100% 100% 100% 100% 100% 100% 100% 100% 100% Kohnan Sagamihara-Nishihashimoto 100% 100% 100% 100% 100% Frespo Inage 100% 100% 100% 100% 100% Shinbashi Ekimae MTR Building 100% 0% 0% 0% 0% Park Lane Plaza 100% 100% 96.8% 96.7% 96.7% Subtotal 99.7% 94.7% 94.6% 96.3% 98.1% 99.1% 96.0% 96.5% 97.6% 98.9% Total (Note 8) (91.9%) (90.5%) (91.6%) (93.1%) (97.9%) 50#52Portfolio Summary and Breakdown of Property-Related Revenues/Expenses (1) Office Tokyo Shiodome Building Kamiyacho Trust Tower ON Building Kioicho Building Sendai MT Building Osaki MT Building 12,210 Property-related expenses 729,037 671,458 134,496 24,753 283,243 Location Construction completion Minato Ward, Tokyo January, 2005 November 1990 Acquisition date April 2010 Acquisition price Book value Appraisal value 82,539 million yen 74,591 million yen 81,600 million yen 191,394.06m (Note 1) July 2021, and other 51,660 million yen 51,507 million yen 56,400 million yen 196,037.12m (Note 2) Minato Ward, Tokyo Shinagawa Ward, Tokyo Chiyoda Ward, Tokyo Miyagino Ward, Sendai Shinagawa Ward, Tokyo March, 2020 November 1989 March 1999 July 1994 (Renovated in 2008) October 2014 February 2023, and other March 2005, and other Total floor space PML (Note 6) Rental revenues (thousand yen) Rental revenues Rent Common charges Land leasing revenues Other rental revenues 6.0% Period ended Period ended Feb. 2023 Aug. 2023 860,556 1,421,864 860,556 1,421,864 6.5% Period ended Period ended Feb. 2023 Aug. 2023 454,407 944,041 442,196 919,288 August 2008 39,900 million yen 38,696 million yen 35,300 million yen 32,812.27m 8.0% Period ended Period ended Feb. 2023 Aug. 2023 34,300 million yen 32,881 million yen 38,400 million yen 63,535.55m (Note 3) 11.3% Period ended Period ended Feb. 2023 Aug. 2023 860,284 1,047,120 773,824 945,185 7,045 10,533 million yen 10,619 million yen 10,500 million yen 42,941.53 m (Note 4) 4.9% Period ended Period ended Feb. 2023 Aug. 2023 14,386 million yen 12,870 million yen 17,600 million yen 26,980.68m (Note 5) 11.5% Period ended Period ended Feb. 2023 Aug. 2023 287,614 192,810 287,164 216,925 334,926 334,374 1,063 904 6,585 Property and other taxes Property taxes 345,978 366,253 345,978 366,253 9,525 9,525 9,984 Other taxes 9,984 Undisclosed Undisclosed (Note 7) (Note 7) Overhead expenses 222,531 227,817 53,788 Property management fees 211,037 210,986 36,907 117,231 77,988 Utilities 15,892 37,091 Casualty insurance 2,894 3,525 233 541 Trust fees Other expenses 625 1,251 Depreciation and amortization Profits and losses from real estate rental business Earnings before depreciation and amortization (NOI) NOI yield (Note 8) 8,600 13,305 129 160,526 77,387 71,183 156,026 131,519 750,405 319,910 660,798 415,797 559,009 292,046 827,792 391,094 816,825 494,247 621,570 357 79,414 95,348 494,669 494,615 90,246 92,542 88,921 91,437 1,325 279,147 206,723 246,352 54,198 73,139 1,315 666 16,243 125,275 365,614 552,505 490,889 617,570 159 24,114 449 552 3,452 79,604 92,809 94,457 39,381 40,854 39,381 40,854 1,104 337,008 300 58,343 3,048 10,073 148 25,108 930 2,955 146 30,592 1,599 2 510 722 880 800 2 451 15,115 65,064 1,680 1,395 6,237 3,152 2.0% 3.2% 3.6% (Note) The results for the fiscal period ended February 2023 are for five months. For properties formerly owned by MORI TRUST Hotel Reit, Inc. (the 5 hotel properties other than Hotel Okura Kobe), information has been indicated by referring to its fiscal period ended February 2023 (results for 6 months). 3.1% 21,261 ▲ 2,388 137,320 763 158,582 6.0% 50,379 43,529 194,804 240,469 245,184 283,999 3.9% 51#53Portfolio Summary and Breakdown of Property-Related Revenues/Expenses (2) Office Hotel Midosuji MTR Building Hiroo MTR Building Tenjin Prime Shin-Yokohama TECH Building Shangri-La Tokyo Hilton Odawara Resort & Spa Location Chuo Ward, Osaka Shibuya Ward, Tokyo Construction completion March 1999 November 1992 October 2008 Acquisition date April 2015 Acquisition price Book value Appraisal value Total floor space PML (Note 6) Rental revenues (thousand yen) Rental revenues Rent Common charges Land leasing revenues 6,709.80m 7.3% Period ended Period ended Period ended Period ended Feb. 2023 Aug. 2023 Aug. 2023 10,170 million yen 9,819 million yen 10,700 million yen 15,129.16m 2.1% January 2018 8,100 million yen 8,309 million yen 8,420 million yen July 2012, and other 7,050 million yen 6,611 million yen 10,100 million yen 7,722.04m 6.4% Building A: February 1986 Building B: February 1988 November 2003 6,900 million yen 6,550 million yen 8,600 million yen 25,187.22m 8.7% Chuo Ward, Fukuoka Kohoku Ward, Yokohama Chiyoda Ward, Tokyo Odawara City, Kanagawa November 2008 October 1997 (Renovated in 2004) March 2023 49,200 million yen 49,140 million yen 49,600 million yen 180,335.11m (Note 9) March 2023 7,100 million yen 7,120 million yen 7,150 million yen 50,605.67m (Note 10) 9.0% Feb. 2023 254,587 307,866 228,090 5,620 283,838 6,745 144,491 119,470 15,340 Feb. 2023 Aug. 2023 255,236 235,381 218,716 205,068 20,061 Period ended Period ended Period ended Period ended Period ended Period ended Feb. 2023 Aug. 2023 158,242 210,074 134,388 180,834 18,408 16,398 Feb. 2023 Aug. 2023 12.6% Period ended Period ended Feb. 2023 Aug. 2023 316,259 562,609 290,043 562,609 935,123 187,218 191,997 935,123 184,986 189,742 Other rental revenues 20,875 Property-related expenses 138,212 Property and other taxes Property taxes 42,179 45,205 42,179 45,205 17,282 9,680 123,938 41,899 11,962 5,445 36,817 12,388 11,840 Other taxes 122 Overhead expenses 57,778 58,452 16,358 Property management fees 24,780 27,167 4,181 12,286 102 11,659 5,034 12,841 82,871 28,921 28,921 16,457 30,312 26,215 84,612 170,056 183,899 246,532 205,434 31,084 30,066 31,010 134,012 135,579 31,084 30,066 31,010 134,012 135,579 2,231 2,255 99,144 121,846 41,945 41,067 41,945 41,067 Utilities 22,881 17,919 8,616 2,281 27,447 6,524 14,607 Casualty insurance 507 618 209 255 186 29,142 80,983 7,464 40,584 14,599 35,547 227 98,293 54,898 1,929 2,813 3,111 25,471 30,205 732 893 Trust fees 416 500 333 400 625 750 1,729 200 1,756 2,009 2,039 200 150 150 Other expenses Depreciation and amortization Profits and losses from real estate rental business Earnings before depreciation and amortization (NOI) NOI yield (Note 8) 9,191 12,246 3,016 3,687 38,254 20,280 13,578 12,769 116,374 183,927 102,591 121,425 154,629 204,208 116,170 134,194 5,503 6,101 26,502 24,384 127,202 170,624 153,705 195,009 4,118 12,296 59,006 54,595 65,324 132,360 124,331 186,955 856 23,281 110,591 67,041 54,087 55,307 316,076 729,689 88,074 70,151 426,667 796,731 142,161 125,458 952 4.0% 3.2% (Note) The results for the fiscal period ended February 2023 are for five months. For properties formerly owned by MORI TRUST Hotel Reit, Inc. (the 5 hotel properties other than Hotel Okura Kobe), information has been indicated by referring to its fiscal period ended February 2023 (results for 6 months). 3.3% 5.5% 5.4% 3.5% 52#54Portfolio Summary and Breakdown of Property-Related Revenues/Expenses (3) Hotel Okura Kobe Hotel Courtyard by Marriott Courtyard by Marriott Hotel Sunroute Plaza Tokyo Station Shin-Osaka Station Shinjuku Retail Facility SHIBUYA FLAG Ito-Yokado Shonandai Location Construction completion Acquisition date Acquisition price Book value Appraisal value Total floor space PML (Note 6) Rental revenues (thousand yen) Rental revenues Rent Common charges Land leasing revenues Other rental revenues March 1997 (Renovated in 2015) August 2009 March 2003 Chuo Ward, Kobe March 1989 (Expanded March 1995) September 2006 19,000 million yen 15,182 million yen 16,900 million yen 72,246.86m 17.8% Chuo Ward, Tokyo February 2014 Yodogawa Ward, Osaka Shibuya Ward, Tokyo August 2007 Shibuya Ward, Tokyo Fujisawa City, Kanagawa November 2002 March 2023 17,017 million yen 16,980 million yen 17,017 million yen 51,242.93m (Note 11) Period ended Period ended Feb. 2023 Aug. 2023 524,794 7.1% Period ended Period ended Feb. 2023 Aug. 2023 March 2023 17,400 million yen 17,352 million yen 17,500 million yen 17,002.28m (Note 12) 4.4% Period ended Period ended Feb. 2023 157,682 March 2023 32,500 million yen 32,447 million yen 32,400 million yen 20,451.25m 5.1% Period ended Period ended Feb. 2023 Aug. 2023 653,716 652,336 Aug. 2023 524,794 629,178 169,829 629,178 169,829 278,669 296,436 653,416 278,567 157,682 296,436 652,336 April 2013 32,040 million yen 32,352 million yen 41,700 million yen 7,766.49m 11.9% Period ended Period ended Feb. 2023 Aug. 2023 11,600 million yen 9,587 million yen 11,700 million yen 53,393.66m 14.0% Period ended Period ended Feb. 2023 Aug. 2023 312,542 312,500 375,045 375,000 101 1,080 1,380 42 45 Property-related expenses 262,734 192,677 70,218 61,934 74,050 77,702 178,542 126,352 92,013 92,437 Property and other taxes Property taxes 71,494 73,594 22,646 71,494 73,594 22,646 23,072 14,112 14,564 68,721 72,784 39,094 38,987 23,072 14,112 14,564 68,721 Other taxes 72,784 Undisclosed Undisclosed (Note 7) 39,094 38,987 (Note 7) Overhead expenses 22,668 25,595 4,121 1,651 5,515 4,125 1,380 1,408 2,232 16,223 Property management fees 1,350 1,340 Utilities Casualty insurance 6,567 8,008 421 427 815 Trust fees 1,666 2,000 238 238 200 828 200 1,180 200 Other expenses Depreciation and amortization 14,434 15,587 3,462 985 3,096 Profits and losses from real estate rental business Earnings before depreciation and amortization (NOI) NOI yield (Note 8) 168,571 93,488 262,060 436,501 430,632 529,989 43,450 37,209 99,610 216,735 143,061 253,944 4,500 54,421 59,012 108,440 52,159 83,632 218,733 474,874 527,363 535,714 647,570 138,053 277,746 583,315 579,522 556,652 669,732 1,199 200 9 882 1,075 13,808 50,687 37,226 220,528 282,608 271,215 319,834 5.6% 3.2% 3.6% 4.2% (Note) The results for the fiscal period ended February 2023 are for five months. For properties formerly owned by MORI TRUST Hotel Reit, Inc. (the 5 hotel properties other than Hotel Okura Kobe), information has been indicated by referring to its fiscal period ended February 2023 (results for 6 months). 3.0% 5.5% 53#55Portfolio Summary and Breakdown of Property-Related Revenues/Expenses (4) Retail Facility Kohnan Sagamihara- Nishihashimoto Frespo Inage Frespo Shinbashi Ekimae MTR Building Sant Residential Park Lane Plaza Total Total floor space PML (Note 6) Rental revenues (thousand yen) Rental revenues Rent Common charges Land leasing revenues Other rental revenues Property-related expenses Property and other taxes Property taxes Other taxes Overhead expenses Property management fees Utilities Casualty insurance Trust fees Other expenses Depreciation and amortization Location Midori Ward, Sagamihara Inage Ward, Chiba Minato Ward, Tokyo Shibuya Ward, Tokyo Construction completion August 2005 April 1999 June 1988 Acquisition date October 2012 March 2002 Acquisition price Book value Appraisal value 7,460 million yen 7,037 million yen 6,620 million yen 40,283.77m 13.5% 2,100 million yen 2,193 million yen 2,600 million yen (39,556.71m) (Note 13) April 2007 6,000 million yen 5,821 million yen 7,270 million yen 7,820.45m (Note 14) 12.2% Period ended Period ended Feb. 2023 Aug. 2023 Period ended Period ended Feb. 2023 Aug. 2023 Aug. 2023 December 2004 3,200 million yen 3,083 million yen 4,330 million yen 5,246.78m 14.9% 470,156 million yen 450,758 million yen 492,407 million yen 5.0% (Note15) Period ended Period ended Period ended Period ended Period ended Period ended Feb. 2023 103,007 123,609 Feb. 2023 Aug. 2023 Feb. 2023 90,656 81,626 7,536 Aug. 2023 107,390 7,558,844 10,374,905 97,191 7,048,565 9,755,149 9,043 196,524 234,344 103,007 123,609 103,007 123,609 7,894 7,269 Undisclosed (Note 7) Undisclosed (Note 7) 7,269 8,020 58,313 56,894 7,270 35,609 29,737 7,270 35,609 29,737 1,493 34,086 7,762 7,762 625 750 7,034 10,408 15,245 1,311 2,178 8,527 14,995 9,969 3,819 5,160 1,737 183 152 145 1,235 177 625 750 1,720 Profits and losses from real estate rental business Earnings before depreciation and amortization (NOI) NOI yield (Note 8) 169,246 218,554 190,430 229,285 6.1% 11.0% 84,296 5,465,360 7,988,694 3.4% (Note) The results for the fiscal period ended February 2023 are for five months. For properties formerly owned by MORI TRUST Hotel Reit, Inc. (the 5 hotel properties other than Hotel Okura Kobe), information has been indicated by referring to its fiscal period ended February 2023 (results for 6 months). Totals for the fiscal period ended February 2023 were calculated based on the following formula. Total for MTR's fiscal period ended February 2023 (results for 5 months) + Total for former MORI TRUST Hotel Reit, Inc.'s fiscal period ended February 2023 (results for 6 months) 95,112 115,588 95,112 115,588 15,668 -58,313 -42,644 2,917 16,748 -56,894 -40,146 4,833 11,079 56,569 1,155 210,747 261,802 30,786 3,378,916 3,382,852 8,098 1,160,800 1,202,202 8,098 1,159,349 1,199,044 1,451 3,157 932,683 1,184,009 600,789 741,024 211,827 253,324 22,390 7,324 3,612 90,352 153,138 7,692 1,285,431 996,640 76,603 4,179,928 6,992,053 26,730 9,791 67,649 5.3% 54#56Overview of Lease Contracts Total Use etc. Property Name Tokyo Shiodome Building (office/retail part) Tokyo Shiodome Building (hotel part: Conrad Tokyo) Occupancy Rate number Type of Lease Contracts Lessee of tenants Master lease contract Linked to sublease rent MORI TRUST CO., LTD. 100% 1 (95.8%) (25) Master lease contract 100% 1 Kamiyacho Trust Tower Master lease contract (99.3%) (7) ON Building 100% Kioicho Building (office part) 97.9% Kioicho Building (residencial part) (97.4%) (76) 1 Leasing directly to tenants 41 Leasing directly to tenants Master lease contract Fixed rent Linked to rents for joint management units MORI TRUST CO., LTD. MORI TRUST CO., LTD. Kobe Steel, Ltd. Office 100% 1 Sendai MT Building Master lease contract (99.1%) (45) 100% 1 Osaki MT Building Master lease contract Linked to sublease rent (85.2%) (16) 100% 1 Midosuji MTR Building Master lease contract pass-through pass-through Linked to sublease rent Mitsui Fudosan Residential Lease Co.,Ltd. MORI TRUST CO., LTD. MORI TRUST CO., LTD. Tokyo Capital Management Co.,Ltd. (100%) (32) Hiroo MTR Building 92.4% 8 Leasing directly to tenants Tenjin Prime 100% 13 Leasing directly to tenants Shin-Yokohama TECH Building 89.1% 20 Leasing directly to tenants Shangri-La Tokyo 100% 1 Master lease contract Hilton Odawara Resort & Spa 100% 1 Leasing directly to tenants Hotel Okura Kobe 100% 1 Leasing directly to tenants Hotel Courtyard by Marriott Tokyo Station 100% 1 Master lease contract Linked to hotel total revenue Linked to hotel profit Fixed rent (Note2) Linked to hotel profit Courtyard by Marriott Shin-Osaka Station 100% 1 Master lease contract Linked to hotel profit Retail facility Hotel Sunroute Plaza Shinjuku SHIBUYA FLAG Ito-Yokado Shonandai Kohnan Sagamihara-Nishihashimoto* Frespo Inage (only land) 100% 1 Leasing directly to tenants Fixed rent 100% 3 Leasing directly to tenants 100% 1 Master lease contract Fixed rent 100% 1 Master lease contract Fixed rent 100% 1 Leasing directly to tenants MORI TRUST CO., LTD. Mt & Hilton Hotel Co.,Ltd. Hotel Okura Kobe MORI TRUST CO., LTD. MORI TRUST CO., LTD. Sotetsu Hotel Management CO., H&M etc. Ito-Yokado Co., Ltd. KOHNAN SHOJI CO., LTD. Daiwa Lease Co., Ltd. LTD. Residential Shinbashi Ekimae MTR Building Park Lane Plaza 96.7% 17 Leasing directly to tenants Core Assets * Fixed-term building lease agreement of Kohnan Sagamihara-Nishihashimoto expired on September 27, 2023. Accordingly, the property name was changed to "Hashimoto MTR Building". Classification of lease contract type Office /other Master lease contract Hotel Master lease contract/ Leasing directly to tenants Linked to sublease rent A master lease form in which MTR receive an amount calculated by multiplying sublease rent (Note 3) by a certain rate Linked to rents for joint management units pass-through Fixed rent Linked to hotel total revenue (profit) Fixed rent A master lease form in which MTR receive an amount calculated by multiplying rent (Note 4) generated from joint management units (Note 5) by a certain rate A master lease form in which MTR receive an amount equal to sublease rent A master lease form in which MTR receive fixed rent from a lessee regardless of sublease rent A form of contract in which MTR receive an amount calculated by multiplying total revenue etc. of hotel (or profit etc. of hotel) which MTR manages by a certain rate A form of contract in which MTR receive fixed rent regardless of total revenue etc. of hotel (or profit etc. of hotel) which MTR manages Others 55#57Details of Hotel Property Lease Contracts Property name Hotel grade No. of guestrooms (Note 1) Developer Hotel operation format Hotel operator Contract period [Termination during the contracted period] [Revision of rent] Tenant [Subtenant] Rent type Calculation base for varliable rent Shangri-La Tokyo Luxury Hilton Odawara Resort & Spa Upper Upscale Hotel Okura Kobe Upper Upscale 468 200 Mori Trust Leased 163 Shangri-La Hotels Japan MC (Note 2) Hilton Worldwide Manage Leased Hotel Okura Kobe From Sep. 2, 2019 From Apr. 1, 2022 to Mar. 31, 2032 From Sep. 1, 2016 to Nov. 30, 2033 Not allowed Possible by consultation every 5 years Mori Trust (Master Lessee) Shangri-La Hotels Japan. Variable (monthly) With minimum annual guaranteed rent Total revenue Rent to Dec. 31, 2049 Not allowed for the first 5 years Possible by consultation every 5 years MT & Hilton Hotel Rent varies each fiscal period (The monthly amount is fixed during a fiscal period.) Profit Rent Rent Not allowed None Hotel Okura Kobe Fixed (Note) Courtyard by Marriott Tokyo Station Upscale 150 Mori Trust FC (Note 3) MORI TRUST HOTELS & RESORTS CO., LTD. From Sep.16, 2016 to Apr. 1, 2039 Not allowed for the first 10 years Possible by consultation every 5 years Mori Trust (Master Lessee) MORI TRUST HOTELS & RESORTS CO., LTD. Variable (monthly) With minimum annual guaranteed rent Profit Rent Courtyard by Marriott Shin-Osaka Station Upscale 332 Mori Trust FC (Note 3) MORI TRUST HOTELS & RESORTS CO., LTD. From Sep. 16, 2016 to Nov. 1, 2040 Not allowed for the first 10 years Possible by consultation every 5 years Mori Trust (Master Lessee) MORI TRUST HOTELS & RESORTS CO., LTD. Variable (monthly) With minimum annual guaranteed rent Profit Rent Hotel Sunroute Plaza Shinjuku Upper midscale 624 Mori Trust Leased Sotetsu Hotel Management From Aug. 20, 2007 to Aug. 31, 2027 Not allowed None Sotetsu Hotel Management Rent Fixed Lease agreements Rent scheme Variable rent Minimum annual variable rent guaranteed rent 882,700,000 yen (Note) Total revenue (Note) If the total rent for the period from April each year to March next year falls short of the minimum annual guaranteed rent, the difference shall be paid by the end of February next year, together with the rent for March next year. Profit Fixed annual rent 1,098,453,780 yen (Note) (Note) Along with fixed annual rent, the total amount of property tax and city planning tax equivalent amount and casualty insurance equivalent amount is paid as variable rent. variable rent Minimum annual guaranteed rent 289,850,000 yen (Note) Profit (Note) If the total rent for the period from October each year to September next year falls short of the minimum annual guaranteed rent, the difference shall be paid by the end of February next year, together with the rent for September next year. Minimum annual guaranteed rent shows the figures equivalent to 93.5% quasi-co- ownership interest in the trust beneficiary interest owned by MTR. variable rent Minimum annual guaranteed rent 460,000,000 yen (Note) Profit (Note) If the total rent for the period from October each year to September next year falls short of the minimum annual guaranteed rent, the difference shall be paid by the end of February next year, together with the rent for September next year. Fixed annual rent 1,304,673,360 yen (Note 1) The number of guestrooms for Shangri-La Tokyo indicates guestrooms available for sale, while for other properties, it indicates the total number of guestrooms at each hotel (in some cases, this includes the share of other co-owners or quasi-co-owners). (Note2) This signifies a management contract, indicating a format whereby hotel operation is outsourced by Mori Trust Group to a brand operator. (Note3) This signifies a franchise, indicating a format whereby Mori Trust Group operates a hotel by itself by being lent brand usage rights from a given brand. 56#58Interest-Bearing Liabilities (As of August 31, 2023) Short-Term Loans Lender Outstanding balance at end of period Average The 77 Bank, Ltd. interest rate Draw down date Repayment date Sumitomo Mitsui Banking Corporation Resona Bank, Limited. 2,500 500 0.19% 0.19% Mizuho Bank, Ltd. 2,000 Sumitomo Mitsui Trust Bank, Limited 2,000 Sumitomo Mitsui Banking Corporation Resona Bank, Limited. 1,500 1,000 Mizuho Bank, Ltd. 500 Oct. 7,2022 Oct. 14,2022 0.19% Apr. 7,2023 Mar. 29,2024 0.20% Aug. 31,2023. Aug. 30,2024 0.20% Aug. 31,2023 Aug. 30,2024 Aug. 31,2023 Aug. 30,2024 0.20% Aug. 31,2023 Aug. 30,2024 Oct. 6,2023 Oct. 13,2023 Sumitomo Mitsui Trust Bank, Limited MUFG Bank, Ltd. 500 500 0.68% Aug. 31,2022 500 Sumitomo Mitsui Banking Corporation The Bank of Fukuoka, Ltd. 1,000 0.83% 0.83% 0.43% 1,000 0.42% Nov. 30,2022 Nov. 30,2022 Jan. 19,2022 Jan. 31,2020| Aug. 29,2025 Nov. 28,2025 Nov. 28,2025 Jan. 19,2026 Jan. 30,2026 Development Bank of Japan Inc. 500 0.47% Jan. 19,2021 Jan. 19,2028 Resona Bank, Limited. 1,000 0.91% Mar. 1,2023 Feb. 29,2028 The Ashikaga Bank, Ltd. 1,000 0.91% Mar. 1,2023 Feb. 29,2028 Development Bank of Japan Inc. 1,500 0.91% Mar. 1,2023 Mar. 1,2028 MUFG Bank, Ltd. 1,500 0.53% Mar. 31,2021 Mar. 31,2028 Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Banking Corporation 1,500 0.47% Feb. 28,2022 Feb. 27,2026 Sumitomo Mitsui Banking Corporation 1,500 0.54% Apr. 9,2021 Apr. 7,2028 1,500 1,000 Sumitomo Mitsui Trust Bank, Limited 1,500 Total 10,000 Sumitomo Mitsui Trust Bank, Limited 1,000 SBI Shinsei Bank, Limited 1,000 0.63% Long-Term Loans The Chiba Bank, Ltd 500 0.62% The Yamanashi Chuo Bank, Ltd 500 0.62% Development Bank of Japan Inc. 1,000 0.41% Lender Outstanding balance at end of period Development Bank of Japan Inc. Resona Bank, Limited. 500 1,000 Mizuho Bank, Ltd. 2,000 Mizuho Bank, Ltd. 1,000 Sumitomo Mitsui Banking Corporation 2,000 Sumitomo Mitsui Banking Corporation 1,000 Development Bank of Japan Inc. 1,500 Resona Bank, Limited. 1,000 Average Draw down date |Repayment date interest rate 0.54% Sep. 29,2017 Sep. 29,2023 0.46% Oct. 18,2016 Oct. 18,2023 0.64% Nov. 30,2016 Nov. 30,2023 0.30% Nov. 30,2020| Nov. 30,2023 0.64% Nov. 30,2016 Nov. 30,2023 0.30% Nov. 30,2020 Nov. 30,2023 0.64% Nov. 30,2016 Nov. 30,2023 0.29% Nov. 30,2020 The Bank of Fukuoka, Ltd. 1,000 0.53% The Nishi-Nippon City Bank, Ltd. Nippon Life Insurance Company 500 500 0.50% Mar. 1,2023 0.52% Feb. 28,2019 0.41% Feb. 26,2021 0.50% Aug. 31,2022 Mar. 1,2023 Mar. 1,2023 Mar. 1,2023. Mar. 12,2021 Apr. 21,2023 Apr. 24,2023 Feb. 27,2026 Sumitomo Mitsui Banking Corporation 1,500 0.51% Oct. 11,2019 Apr. 11,2028 Feb. 27,2026 Aozora Bank, Ltd. 1,000 0.71% Apr. 11,2022 Apr. 11,2028 Feb. 27,2026 Mizuho Bank, Ltd. 1,500 0.51% Oct. 17,2019 Apr. 17,2028 Feb. 27,2026 Sumitomo Mitsui Trust Bank, Limited. 1,000 0.84% Aug. 31,2023 May. 31,2028 Feb. 27,2026 MUFG Bank, Ltd. 1,000 0.99% Mar. 1,2023 Aug. 31,2028 Feb. 27,2026 Feb. 27,2026 SBI Shinsei Bank, Limited 1,000 0.53% Aug. 31,2020 Aug. 31,2028 The 77 Bank, Ltd. 1,000 0.54% Aug. 31,2020 Aug. 31,2028 Mar. 12,2026 Nippon Life Insurance Company 1,000 0.76% May. 31,2023 Aug. 31,2028 Mar. 31,2026| Mitsui Sumitomo Insurance Company, Limited 1,500 0.59% Oct. 29,2021 Oct. 31,2028 Resona Bank, Limited. 1,000 Aozora Bank, Ltd. 500 Sumitomo Mitsui Banking Corporation 2,000 0.52% 0.36% Sep. 30,2020| 0.39% Apr. 22,2021 0.72% Apr. 24,2018 0.75% Aug. 31,2022 Mar. 31,2026 Mizuho Bank, Ltd. 2,000 1.07% Feb. 28,2023 Feb. 28,2029 Mar. 31,2026 Mizuho Bank, Ltd. 1,000 1.07% Mar. 1,2023 Feb. 28,2029 Apr. 22,2026 Development Bank of Japan Inc. 3,000 0.71% Feb. 28,2022 Feb. 28,2029 Apr. 24,2026 Mizuho Trust & Banking co., Ltd. 1,000 1.07% Feb. 28,2023 May. 29,2026 Mizuho Trust & Banking co., Ltd. 1,000 Fixed Feb. 28,2029 1.07% Mar. 1,2023 Feb. 28,2029 Mizuho Bank, Ltd. 1,000. Sumitomo Mitsui Trust Bank, Limited 1,000 Resona Bank, Limited. 500 Nov. 30,2023 MUFG Bank, Ltd. 3,000 Mizuho Bank, Ltd. 3,000 0.17% Aug. 30, 2019 Feb. 29,2024 Sumitomo Mitsui Trust Bank, Limited 2,000 0.55% Mizuho Bank, Ltd. 2,000 0.33% Nov. 29,2019 Feb. 29,2024 Mizuho Bank, Ltd. 1,000 0.36% Development Bank of Japan Inc. 1,500 0.64% Aozora Bank, Ltd. 2,000 0.54% Feb. 28,2017 Mar. 11,2016 Feb. 29,2024 Development Bank of Japan Inc. 1,000 0.75% Aug. 31,2022 0.75% Aug. 31,2022 0.39% May. 31,2021 0.70% Mar. 1,2023 Aug. 31,2022 Sep. 2,2019 0.33% Aug. 30,2019 May. 29,2026 Aozora Bank, Ltd. 1,000 1.07% Mar. 1,2023 Feb. 28,2029 May. 29,2026 Mizuho Bank, Ltd. 1,000 0.82% Apr. 11,2022 Apr. 11,2029 May. 29,2026 Aug. 31,2026 Aug. 31,2026 Aozora Bank, Ltd. 1,500 0.59% Apr. 23,2021 Apr. 23,2029 Mizuho Bank, Ltd. Mizuho Bank, Ltd. 500 1.02% Aug. 31,2023 1,500 1.23% Mar. 1,2023 Aug. 31,2026 Sumitomo Mitsui Banking Corporation 1,000 1.23% Mar. 1,2023 Aug. 31,2029 Feb. 28,2030 Feb. 28,2030 Mar. 11,2024 The Nishi-Nippon City Bank, Ltd. 1,000 0.41% Aug. 31,2020 Shinkin Central Bank 2,000 Sumitomo Mitsui Banking Corporation 3,000 0.57% Mar. 19,2018 0.27% Mar. 19,2024 The 77 Bank, Ltd. 500 0.31% Development Bank of Japan Inc. 2,000 0.36% Oct. 9,2020 Apr. 11,2019 Apr. 9,2024 Nippon Life Insurance Company 500 0.40% Apr. 11,2024 Mitsui Sumitomo Insurance Company, Limited 500 0.39% Aug. 30,2019 Apr. 23,2021 Sep. 30,2020 Mizuho Bank, Ltd. 1,000 0.36% Apr. 11,2019 Apr. 11,2024 Sumitomo Mitsui Banking Corporation 5,500 0.50% Mizuho Bank, Ltd. 3,000 0.56% Apr. 24,2018 Apr. 24,2024 Sumitomo Mitsui Trust Bank, Limited 1,000 0.42% Feb. 28,2023 Dec. 24,2021 Aug. 31,2026 Aug. 31,2026 Aug. 31,2026 Sep. 18,2026 Sep. 30,2026 Nov. 30,2026 MUFG Bank, Ltd. Mizuho Bank, Ltd. Mizuho Bank, Ltd. 500 0.79% Feb. 28,2022 Feb. 28,2030 3,500 1.07% Apr. 12,2023 Mar. 29,2030 1,500 0.90% Apr. 11,2022 Apr. 11,2030 MUFG Bank, Ltd. 2,000 0.92% Apr. 13,2022 Apr. 12,2030 Sumitomo Mitsui Banking Corporation 1,000 0.65% Dec. 24,2021 Jun. 24,2030 Sumitomo Mitsui Banking Corporation 1,500 0.76% Jan. 19,2022 Jul. 19,2030 Dec. 24,2026 Mizuho Bank, Ltd. 2,500 1.18% Aug. 31,2023 Aug. 30,2030 The Bank of Fukuoka, Ltd. 1,000 0.56% May. 31,2018 Mizuho Bank, Ltd. 5,000 Mizuho Bank, Ltd. 1,000 MUFG Bank, Ltd. 3,000 0.36% 0.45% 0.52% Sumitomo Mitsui Trust Bank, Limited 2,000 Sumitomo Mitsui Banking Corporation 1,000 Sumitomo Mitsui Banking Corporation 3,000 0.45% 0.45% Aug. 31,2021 0.29% May. 31,2024 Nov. 29,2019 Aug. 30,2024 Aug. 31,2021 Aug. 30,2024 Nov. 30,2021 Aug. 31,2021 MUFG Bank, Ltd. 1,000 0.40% Dec. 25,2020 Dec. 25,2026 Mizuho Bank, Ltd. 1,000 0.62% Aug. 31,2021 Aug. 30,2030 Resona Bank, Limited. 500 0.56% Dec. 26,2019 Dec. 25,2026 Mizuho Bank, Ltd. 500 0.63% Aug. 30,2021 Aug. 30,2030 The Bank of Fukuoka, Ltd. 500 0.56% Aug. 30,2024 Mizuho Bank, Ltd. 500 0.50% Aug. 30,2024 The Bank of Fukuoka, Ltd. 1,000 0.51% Dec. 26,2019 Jan. 19,2022 Jan. 31,2022 Aug. 30,2024 The Norinchukin Bank 3,000 0.38% Feb. 28,2020 Dec. 25,2026 Jan. 19,2027 Jan. 29,2027 Feb. 26,2027 MUFG Bank, Ltd. 1,500 1.18% Aug. 31,2023 Aug. 30,2030 Sumitomo Mitsui Banking Corporation 2,000 0.98% Apr. 28,2022 Oct. 28,2030 Mizuho Bank, Ltd. Mizuho Bank, Ltd. 1,500 0.66% Aug. 31,2021 Feb. 28,2031 1,500 0.98% Apr. 11,2022 Apr. 11,2031 Oct. 9,2020 Oct. 9,2024 Sumitomo Mitsui Trust Bank, Limited 1,500 0.59% Aug. 31,2022 Feb. 26,2027 Total 200,500 Sumitomo Mitsui Banking Corporation 1,000 0.30% Apr. 9,2021 Oct. 9,2024 The Ashikaga Bank, Ltd. 1,000 0.63% Apr. 22,2022 Apr. 22,2027 Sumitomo Mitsui Trust Bank, Limited 3,000 0.53% Development Bank of Japan Inc. 1,500 The Nishi-Nippon City Bank, Ltd. 500 Mizuho Bank, Ltd. 1,500 0.53% 0.43% 0.56% Nov. 30,2021 Nov. 29,2024 Nov. 30,2021 Nov. 29,2024 Dec. 26,2019 Jan. 19,2018 Aozora Bank, Ltd. 500 0.45% Dec. 24,2021 Jun. 24,2027 SUMITOMO LIFE INSURANCE COMPANY 500 0.59% Dec. 26,2019 Jun. 25,2027 Dec. 26,2024 The Bank of Fukuoka, Ltd. 1,000 0.55% Jan. 31,2022 Jul. 30,2027 Jan. 17,2025 MUFG Bank, Ltd. 3,000 0.84% Mar. 1,2023 Aug. 31,2027 MUFG Bank, Ltd. 500 Sumitomo Mitsui Trust Bank, Limited 3,000 0.56% Jan. 19,2018 0.32% Feb. 28,2020 Jan. 17,2025 Sumitomo Mitsui Trust Bank, Limited 1,500 0.63% Aug. 31,2022 Aug. 31,2027 Feb. 28,2025 Sumitomo Mitsui Trust Bank, Limited 1,000 Mizuho Bank, Ltd. 1,000 0.65% Feb. 28,2018 Feb. 28,2025 Resona Bank, Limited. 1,000 Sumitomo Mitsui Banking Corporation: 1,000 0.65% Feb. 28,2018 Feb. 28,2025 Resona Bank, Limited. 500 The Hachijuni Bank, Ltd. 1,000 0.34% Feb. 28,2020 Feb. 28,2025 The Norinchukin Bank 1,500 MUFG Bank, Ltd. 500 0.65% Development Bank of Japan Inc. 1,000 0.64% Feb. 28,2018 Mar. 19,2018 Feb. 28,2025 The Nishi-Nippon City Bank, Ltd. 1,500 Mar. 19,2025 SUMITOMO LIFE INSURANCE COMPANY 500 Sumitomo Mitsui Banking Corporation 2,500 0.33% Apr. 9,2021 Apr. 9,2025 The Dai-ichi Life Insurance Company,Limited 500 Sumitomo Mitsui Trust Bank, Limited 4,000 0.37% Apr. 13,2020 Apr. 11,2025 Development Bank of Japan Inc. 1,000 MUFG Bank, Ltd. 1,000 0.32% Sumitomo Mitsui Banking Corporation 3,000 MUFG Bank, Ltd. 3,000 Mizuho Trust & Banking co., Ltd.. 2,000 Mizuho Trust & Banking co., Ltd.. 500 Apr. 13,2021 Apr. 11,2025 0.46% Apr. 24,2019 Apr. 24,2025 0.68% Aug. 31,2018 Aug. 29,2025 0.68% Aug. 31,2022 Aug. 29,2025 0.30% Sumitomo Mitsui Trust Bank, Limited 1,000 0.43% 0.74% MUFG Bank, Ltd. 1,500 0.50% Mizuho Bank, Ltd. 1,000 0.63% Mizuho Bank, Ltd. 1,000 0.47% Shinkin Central Bank 1,000 0.30% Shinkin Central Bank 1,000 Sumitomo Mitsui Banking Corporation 500 0.68% 0.44% Aug. 31,2023 Aug. 29,2025| Sep. 2,2019 Aug. 29,2025 Sep. 2,2019 Aug. 29,2025 Aug. 31,2022 Aug. 29,2025 Mizuho Bank, Ltd. 1,000 Mizuho Bank, Ltd. 500 Sumitomo Mitsui Trust Bank, Limited 1,500 0.55% 0.99% 0.99% 0.84% -(Note1) Aug. 31,2023 0.48% Aug. 31,2020 0.38% Aug. 30,2019 0.48% Aug. 31,2020 0.38% Aug. 30,2019 0.56% Feb. 28,2022 Mar. 12,2020 Sep. 30,2022 Apr. 13,2021 Dec. 26,2019 Jan. 19,2021 Feb. 26,2021 Jan. 19,2023 Jan. 19,2023 Feb. 28,2023 Aug. 31,2027 Balance at end of | Aug. 31,2027 Aug. 31,2027 Aug. 31,2027 Aug. 31,2027 Aug. 31,2027 Aug. 31,2027 Sep. 10,2027 Sep. 30,2027 Oct. 13,2027 Dec. 24,2027 Jan. 19,2028 Issue 13th unsecured investment corporation bonds Interest rate period 3,000 16th unsecured investment corporation bonds 6th unsecured investment corporation bonds 18th unsecured investment corporation bonds. 19th unsecured investment corporation bonds 14th unsecured investment corporation bonds 1,000 0.17% 0.11% Issue date Feb. 25,2021 Maturity date Feb. 22,2024 Feb. 21,2022 Feb. 28,2025 1,000 1.07% Feb. 26,2015 Feb. 26,2027 2,000 0.42% Jun. 20,2022 Feb. 29,2028 3,000 0.79% Feb. 17,2023 Feb. 28,2029 1,000 0.50% Feb. 25,2021 Feb. 25,2031 17th unsecured investment corporation bonds 15th unsecured investment corporation bonds 9th unsecured investment corporation bonds 1,000 0.50% Feb. 21,2022 Feb. 27,2032 1,000 0.75% Feb. 25,2021 Feb. 25,2036 1,000 1.08% Feb. 23,2017 Feb. 23,2037 Total 14,000 Jan. 19,2028 Jan. 19,2028 Jan. 19,2028 Development Bank of Japan Inc. 500 0.30% Sep. 2,2019 Aug. 29,2025 Resona Bank, Limited. 500 0.30% Sep. 2,2019 Aug. 29,2025 (Note) The short-term loans, long-term loans, and investment corporation bonds are all unsecured and unguaranteed. Total interest-bearing liabilities at the end of the period: 224,500 million yen Borrowed and issued during the 43rd period ended August 2023. 57#59Investors Top 10 Unitholders (Total Number of Outstanding Investment Units: 3,560,000) Unitholders MORI TRUST Holdings, Inc. Custody Bank of Japan, Ltd. (Trust accounts) The Master Trust Bank of Japan, Ltd. (trust account) The Nomura Trust and Banking Co., Ltd. (investment trust) SSBTC CLIENT OMNIBUS ACCOUNT STATE STREET BANK WEST CLIENT - TREATY 505234 JP MORGAN CHASE BANK 385781 LEGAL + GENERAL ASSURANCE PENSIONS MANAGEMENT LIMITED JP MORGAN CHASE BANK 385771 STATE STREET BANK AND TRUST COMPANY FOR DWS RREEF REAL ASSETS FUND Total of top 10 unitholders Changes in Investment Unitholder Ratio by Owner (End of Each Fiscal Period) (As of Aug. 31, 2023) Number of Ownership ratio units held 1,038,700 29.2% 698,860 19.6% 370,818 10.4% 125,790 3.5% 47,321 1.3% 43,615 1.2% 34,546 1.0% 32,401 0.9% 31,845 0.9% 28,960 0.8% 2,452,856 68.9% Changes in Number of Investment Unitholders by Owner (End of Each Fiscal Period) ■Total number of investment unitholders Total number of outstanding 10.1% investment units 40.9% as of August 31, (358,079) (1,455,370) 31.1% (1,108,252) 17.9% (638,299) Period ended Aug. 2023 Period ended Feb. 2023 2023: 3,560,000 Period ended Sep. 2022 24,890 18,363 18,598 Total number of outstanding 10.3% investment units as of February 28, (135,558) 43.3% (571,568) 28.5% (376,747) 17.9% (236,127) Individuals and others 2023: 1,320,000 Period ended Aug. 2023 24,038 Period ended Feb. 2023 Total number of outstanding investment units as of September 30, (142,700) 2022: 1,320,000 17,672 10.8% 41.8% (551,338) Individuals and others Other domestic corporations Overseas corporations and individuals 28.6% (377,723) 18.8% Period ended Sep. 2022 17,895 (248,239) Financial institutions Financial institutions (including securities companies) (incl. securities companies) Other domestic corporations ■Overseas corporations and individuals Period ended Aug. 2023 135 Period ended Aug. 2023 427 Period ended Aug. 2023 290 Period ended Feb. 2023 115 Period ended Feb. 2023 295 Period ended Feb. 2023 281 Period ended Sep. 2022 126 Period ended Sep. 2022 303 Period ended Sep. 2022 274 58#60Changes in Unit Prices Closing Unit Price and Trading Volume (February 13, 2004 to August 31, 2023) Unit price (Thousand yen) 200 150 100 50 50 Trading volume -Unit price Trading Volume 100,000 Listed on TSE on February 13, 2004 October 2008 Capital increase through a private placement May 2010 Capital increase through public offering October 2013 Capital increase through public offering March 2023 Merger with 90,000 MORI TRUST Hotel Reit, Inc. 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10,000 0 0 Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 *Unit price and trading volume take into account the split of investment units (at the ratio of 1 to 5 units) on April 1, 2014, and of investment units (at the ratio of 1 to 2 units) on March 1, 2023, and figures prior to March 1, 2023 are revised accordingly. Comparative Performance of Closing Unit Price (February 13, 2004 to August 31, 2023) 250 200 150 100 50 0 -MTR's unit price -TSE REIT Index TOPIX Jan-04 Jan-05 Jan-06 Jan-07 Jan-08 Jan-09 Jan-10 Jan-11 Jan-12 Jan-13 Jan-14 Jan-15 Jan-16 Jan-17 Jan-18 Jan-19 Jan-20 Jan-21 Jan-22 Jan-23 59#610 5 10 10 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 15 Mar-12 Mar-13 5 10 10 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 155 15 Mar-12 20 20 Tokyo Business Districts (%) Average rent (right axis) -Average vacancy rate (left axis) (yen/ (%) month,tsubo) 25,000 20 Mar-13 Mar-14 Tokyo business districts Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku, and Shibuya-ku Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 (%) 20 20 Fukuoka Business Districts Average rent (right axis) (yen/ -Average vacancy rate (left axis) month, tsubo). 12500 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Source: Prepared by MTR based on data published by Miki Shoji Co., Ltd. Mar-22 Mar-23 5000 7500 0 15 10000 5 10 10 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-23 Changes in Vacancy Rate and Rent per Unit in Major Cities 20,000 15 15,000 10 10 10,000 5 5,000 0 Mar-07 Mar-08 Yokohama Business Districts Average rent (right axis) (yen/ -Average vacancy rate (left axis) month, tsubo) Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 20 12500 15 10000 10 7500 5 5000 0 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Osaka Business Districts (%) Average rent (right axis) (yen/ -Average vacancy rate (left axis) month,tsubo) 12500 Yokohama business districts: Kannai, Yokohama Station, Shin- Yokohama, and Minato Mirai 21 Sendai Business Districts Average rent (right axis) -Average vacancy rate (left axis) month,tsubo) (%) 20 (yen/ Osaka business districts: Umeda, Minami-Morimachi, Yodoyabashi and Honmachi, Senba, Shinsaibashi and Namba, and Shin-Osaka Nagoya Business Districts (%) 12500 20 Average rent (right axis) Average vacancy rate (left axis) (yen/ month,tsubo) 10000 Fukuoka business districts: Akasaka Daimyo, Tenjin, Yakuin and Watanabe Dori, Gion and Gofukumachi, Hakata Station front, Hakata Station East and South Sendai business districts Station front area, area around Ichibancho, area around prefectural government and city hall, area east of the station, and neighboring office Nagoya business districts Meieki, Fushimi, Sakae, and Marunouchi Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 5000 7500 5 0 Mar-07 Mar-08 Mar-09 10 15 15 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14 Mar-15 Mar-16 Mar-17 Mar-18 Mar-19 Mar-20 Mar-21 Mar-22 60 00 Mar-23 5000 7500 Mar-14 Mar-15 10000 Mar-16 Mar-17 Mar-18 12500 Mar-19 Mar-20 Mar-21 Mar-22 Mar-23 5000 7500 10000#62Asset Management Company Remuneration Methods (After March 1, 2023) Agreement For each operation period, the average amount of the total appraisal value of assets at Remuneration the end of the settlement period under review and the total appraisal value of assets at Method 1 the end of the previous settlement period shall be multiplied by up to 0.2%, being the percentage determined by the Board of Management meeting, multiplied by one half. The amount shall be derived by multiplying the result of dividing profit before deducting Management fee 2 in each business period by the total number of investment units outstanding in each Accounting Period (rounded off to the nearest yen) by the rate of up to 0.0012% determined by the Board of Directors. Remuneration Profit before Management fee 2 is the amount derived by adding amortization of Method 2 goodwill to and subtracting gains on negative goodwill incurred from profit before income taxes calculated pursuant to corporate accounting standards generally deemed fair and appropriate in Japan (before subtracting Management fee 2 and non-deductible consumption tax and other dues applicable to Management fee 2), after adding the total amount of any loss carried forward. Remuneration Method 3 Remuneration Method 4 In the event MTR acquires specified assets stipulated in the agreement, the rate of remuneration shall be a set percentage of the acquisition price of each property (excluding consumption tax, local consumption tax and transaction-related expenses), as listed below. For acquisitions up to ¥15 billion, remuneration is 0.4% of the amount - For acquisitions from ¥15 billion to ¥30 billion, remuneration is 0.1% of the amount For acquisitions above ¥30 billion, remuneration is 0.05% of the amount In the event MTR transfers specified assets stipulated in its agreement, the rate of remuneration shall be 0.05% of the transfer amount of each asset transferred (excluding consumption tax, local consumption tax and transaction-related expenses). Calculation rate for remuneration 0.15% (Note 1) 0.0006% (Note 2) Refer to left column Calculation method (Total appraisal value of assets at relevant fiscal period-end + Total appraisal value of assets at prior fiscal period-end) 2 x 0.15% x 1/2 Profit per unit x Profit x 0.0006% Total amount of the acquisition price percentage listed in the left column Refer to left Transfer amount x 0.05% column 61#63Organization Chart Transfer Agent, 1 MTR General Administrator of 2 Accounting and Asset Custodian Sumitomo Mitsui Trust Bank, Limited 1 General Services Agreement (Administration of Registration MMORI TRUST REIT Share Issuance and Accounting) 2 Asset Custody Agreement 3 Fiscal, Issuing and Payment MORI TRUST REIT, Inc. Agency Agreement General Meeting of Unitholders 4 Asset Management Agreement 5 General Services Agreement General Administrator of (Administration of Organizational Operation) Investment Corporation Bonds Board of Management 6 Letter of agreement for the 3 Executive Director: provision of information on MUFG Bank, Ltd. Hiroshi Naito real estate, etc. Sumitomo Mitsui Supervisory Director: 7 Trademark Licensing Agreement Trust Bank, Limited Naomasa Nakagawa 8 Mizuho Bank, Ltd. Supervisory Director: Letter of agreement for sponsor support Harumi Katagiri 6 Sponsor Company Sponsor Company 7 Accounting Auditor 8 MORI TRUST CO., LTD. Ernst & Young ShinNihon LLC Mori Trust Hotels & Resorts Co., Ltd. 4 5 Asset Management Company and General Administrator of Organizational Operations MORI TRUST Asset Management Co., Ltd. 62 62#64Notes (1) Figures are rounded down to the nearest unit unless otherwise specified in this information package. However, percentages (%) are rounded off. Property names are sometimes indicated using the following abbreviations. - Tokyo Shiodome Building Shiodome Kamiyacho Trust Tower: Kamiyacho - Sendai MT Building : Sendai - - Shin-Yokohama TECH Building Shin-Yokohama Shangri-La Tokyo: Shangri-La or SL - Hilton Odawara Resort & Spa - - - - Hilton Odawara or HO Courtyard by Marriott Tokyo Station Courtyard Tokyo or CYT Courtyard by Marriott Shin-Osaka Station: Courtyard Shin-Osaka or CYO Hotel Sunroute Plaza Shinjuku : Sunroute Shinbashi Ekimae MTR Building : Shinbashi P.3 (1) Asset size is the total acquisition price. The same applies thereafter. (2) For the properties that adopt the master lease contract with the system of linking rental revenue with rents under the sublease contract or the master lease contract of the pass-through type, the occupancy rate calculated based on the occupancy rate under the sublease contract is stated. The same applies thereafter. (3) Unrealized profit is the difference between total appraisal value at the end of the fiscal period and total book value at the end of the fiscal period. (4) NOI yield = NOI for the 43rd FP (annualized) / Total acquisition price (5) Yield after depreciation = Real estate rental income after depreciation for the 43rd FP (annualized) / Total acquisition price (6) The average interest rate at the end of the fiscal period is indicated starting from the fiscal period ended August 2023. (7) NAV per unit: (Year-end net asset value + Unrealized profit and loss - Total distribution) ÷ Number of investment units issued P.4 (1) The occupancy rate for each asset, such as real estate, is the percentage of the total rented area out of the total rentable area. The same applies thereafter. (2) A master lease agreement, under which rent income is linked to rents under sublease agreements, has been used for the office and store sections, and a master lease agreement specifying a fixed rent has been used for the hotel section of Tokyo Shiodome Building. Therefore, the numbers in parentheses of the occupancy rates of the properties, represent occupancy rates based on sublease agreements for the office and store section and occupancy rates based on the master lease agreement for the hotel section. The same applies thereafter. (3) "4 properties with variable rents" are Shangri-La, Hilton Odawara, the Courtyard Tokyo and Courtyard Shin-Osaka, all of which have variable rents. The same applies thereafter. P.5 (1) Average daily rate (ADR) represents the average unit price of guestrooms, including service charges. RevPAR (revenue per available room) represents the accommodation revenue per room for the total number of guestrooms available for sale, including service charges. The same applies thereafter. 63#65Notes (2) P.10 (1) A master lease agreement, under which rent income is linked to rents under sublease agreements, has been used for the office and store sections, and a master lease agreement specifying a fixed rent has been used for the hotel section of Tokyo Shiodome Building. Therefore, the numbers in parentheses of the occupancy rates of the properties, represent occupancy rates based on sublease agreements for the office and store section and occupancy rates based on the master lease agreement for the hotel section. The same applies thereafter. P.15 (1) Central Tokyo refers to Chiyoda-ku, Chuo-ku, Minato-ku, Shinagawa-ku, Shibuya-ku and Shinjuku-ku (2) Other (metropolitan area, ordinance-designated cities, etc.) refers to metropolitan area (Tokyo (excluding central Tokyo), Kanagawa, Chiba and Saitama) and ordinance-designated cities, etc. (3) Major cities across Japan refers to 23 wards of Tokyo and government ordinance-designated cities (4) "Famous tourist sites" indicates areas with appealing culture, tourism resources, etc. that already have the capacity to attract tourists or are expected to have the capacity to attract tourists in the future. (5) Asset size of each year refers to that as of the end of the fiscal period ended in March for MTR and that as of the end of the fiscal period ended in February for MTH. (6) Before the Merger refers to the time as of the end of the fiscal period ended in February 2023 for MTR and MTH. (7) After the Merger refers to the time as of March 1, 2023. P.18 (1) In the "Changes in number of inbound (vs.2019)" chart, For the July and August 2023 values for the West, since the U.S., Canada, Mexico, U.K., France, Germany, Italy, Spain, Russia, and Scandinavia have only disclosed estimates as of October 11, 2023, the comparisons with July and August 2019 are calculated based on the total of these estimates and the total of the results for the same countries and regions in July and August 2019. (2) In the "Changes in number of inbound (vs. 2019)" chart, For the July and August 2023 values for Asia (excluding China), since South Korea, Taiwan, Hong Kong, Thailand, Singapore, Malaysia, Indonesia, the Philippines, Vietnam, and India have only disclosed estimates as of October 11, 2023, the comparisons with July and August 2019 are calculated based on the total of these estimates and the total of the results for the same countries in July and August 2019. In the Middle East regions, since the aggregation criteria differ in 2019 and 2023, calculation of the comparisons with July and August 2019 has been omitted. (3) In the "Scope for Rent Increases at Four Hotel Properties with Variable Rent" chart, the performance for the fiscal period ended February 2020 for the four hotel properties with variable rent indicates the total obtained by adding the actual rent for the three hotel properties with variable rent other than the Hilton Odawara for the fiscal period ended February 2020 and the assumed rent if the Hilton Odawara, which was acquired on September 2, 2019, had been owned from the beginning of the fiscal period ended February 2020 (September 1, 2019) (hereinafter referred to as the "Hilton Odawara assumed rent for the fiscal period ended February 2020"). The performance for the fiscal period ended August 2019 indicates the total obtained by adding the actual rent for the three hotel properties with variable rent other than the Hilton Odawara for the fiscal period ended August 2019 and the Hilton Odawara assumed rent for the fiscal period ended February 2020. P.21 (1) LTV as of March 1, 2023 is calculated by dividing a sum of the total interest-bearing debts above by the total assets as of March 1, 2023. P.28 (1) International brand hotels refer to Shangri-La Tokyo, Hilton Odawara Resort & Spa, Courtyard by Marriott Tokyo Station and Courtyard by Marriott Shin-Osaka Station. Conrad Tokyo housed in the Tokyo Shiodome Building is not included in international brand hotels as the category of multi-use properties is determined based on their main use. P.29 (1) The picture of Tokyo World Gate Akasaka is a conceptual drawing at the time completion, and may be different from the actual result. 64#66Notes (3) P.36 (1) For the July and August 2023 values for the West, since the U.S., Canada, Mexico, U.K., France, Germany, Italy, Spain, Russia, and Scandinavia have only disclosed estimates as of October 11, 2023, the comparisons with July and August 2019 are calculated based on the total of these estimates and the total of the results for the same countries and regions in July and August 2019. (2) For the July and August 2023 values for Asia (excluding China), since South Korea, Taiwan, Hong Kong, Thailand, Singapore, Malaysia, Indonesia, the Philippines, Vietnam, and India have only disclosed estimates as of October 11, 2023, the comparisons with July and August 2019 are calculated based on the total of these estimates and the total of the results for the same countries in July and August 2019. In the Middle East regions, since the aggregation criteria differ in 2019 and 2023, calculation of the comparisons with July and August 2019 has been omitted. p.37 (1) Base month (period) for rent represents the month (period) used as the base for calculating rent. Indicators for respective hotels (Occupancy rate, ADR and RevPAR) show the relevant values of respective hotels for each base month for rent. The indicators of SL and HO are not disclosed, however, as no consent to disclosure has been obtained from the end tenant. The base month for rent is the month four months prior to the rent recording month for SL, and the month three months prior to the rent recording month for CYT and CYO, respectively. For HO, the base period for calculation of rent, which for the 13th FP of MTH corresponds to the period from January 2021 to December 2021, and which for the 43rd FP corresponds to the period from January 2022 to December 2022, is used. (2) Rent recording month represents the month for which MTR records rent revenues. Rent indicates the rent for each rent recording month. Rent shows the actual value for each property, rounded down to the nearest million yen. The same applies thereafter. As a result of the partial transfer of CYT conducted on August 31, 2021, the rent and the difference from the minimum guaranteed rent of CYT recorded on or after September 1, 2021 are the amount equivalent to 94.5% quasi-co-ownership interest in the trust beneficiary interest owned by MTR. The same applies thereafter. As a result of the partial transfer of CYT conducted on August 31, 2022, the rent and the difference from the minimum guaranteed rent of CYT recorded on or after September 1, 2022 are the amount equivalent to 93.5% quasi-co-ownership interest in the trust beneficiary interest owned by MTR. The same applies thereafter. (3) At CYT, since there is the difference (shortfall) of 274 million yen between the total amount of rent for the period from October 2021 to September 2022 and the minimum annual guaranteed rent, 251 million yen (out of this amount, the amount equivalent to 94.5% quasi-co-ownership interest in the trust beneficiary interest owned by MORI TRUST REIT is 237 million yen.) was added to the rent for the 13th fiscal period of MTH and also 22 million yen (out of this amount, the amount equivalent to 93.5% quasi-co-ownership interest in the trust beneficiary interest owned by MORI TRUST REIT is 21 million yen.) will be added to the rent for the 14th fiscal period of MTH separately. (4) At CYO, since there is the difference (shortfall) of 412 million yen between the total amount of rent for the period from October 2021 to September 2022 and the minimum annual guaranteed rent, 378 million yen was added to the rent for the 13th fiscal period of MTH and also 34 million yen will be added to the rent for the 14th fiscal period of MTH separately. P.38 (1) Base month (period) for rent represents the month (period) used as the base for calculating rent. Indicators for respective hotels (Occupancy rate, ADR and RevPAR) show the relevant values of respective hotels for each base month for rent. The indicators of SL and HO are not disclosed, however, as no consent to disclosure has been obtained from the end tenant. The base month for rent is the month four months prior to the rent recording month for SL, and the month three months prior to the rent recording month for CYT and CYO, respectively. For HO, the base period for calculation of rent, which for the 14th FP of MTH corresponds to the period from July 2021 to June 2022, and which for the 43rd FP corresponds to the period from January 2022 to December 2022, is used. 65#67Notes (4) P.48 (1) Acquisition price and leasable area indicate the figures corresponding to the quasi-co-ownership interest owned by MTR. For details, please view "Financial Summary (REIT) for Fiscal Period Ended August 31, 2023" published on October 20, 2023. The same applies thereafter. (2) The completion of construction for, of each building of Hilton Odawara Resort & Spa, the main buildings for business use (the main facility, bade facility and sports facility) is stated. The completion of construction for the chapel, the other main building for business use, is October 2004. (3) The real estate in trust associated with Frespo Inage is only land, and the building is not included. P.49 (1) Kamiyacho Trust Tower was additionally acquired on March 1, 2023. The figures in brackets are obtained by deducting the amount equivalent to the additionally acquired from the appraisal value of the portfolio properties at the end of fiscal period ended August 2023. (2) Sendai MT Building was additionally acquired on August 31, 2023 (90,845/300,000 co-ownership interest). Furthermore, we plan to additionally acquire 90,845/300,000 co-ownership interest on February 29, 2024, respectively. For the details of acquisition of Sendai MT Building, please see the release of MTR, "Notice of Sale of Asset (Shinbashi Ekimae MTR Building) and Acquisition and Lease of Asset (Sendai MT Building)" dated July 28, 2022. (3) For Frespo Inage, the direct reduction method is not adopted, and the terminal cap rate have not been established. (4) Since one-third of the co-ownership interest in Shinbashi Ekimae MTR Building was sold on August 31, 2023, the co-ownership interest owned by MTR is one-thirds. The decrease in the book value and appraisal value at the end of the fiscal period compared with the previous fiscal period is due to the difference that occurred as a result of selling the co-ownership interest. (5) Richi Appraisal: Richi Appraisal Institute, Japan Real Estate: Japan Real Estate Institute, Daiwa Real Estate: Daiwa Real Estate Appraisal Co., Ltd., Chuo-Nittochi: Chuo-Nittochi Solutions Co., Ltd. P.50 (1) The total occupancy rate is based on assets, such as real estate, held by MTR as of the end of each fiscal period. If the result of rounding is 100.0%, however, the rate is indicated as 99.9% by rounding down the second decimal place to the nearest first decimal place. (2) A master lease agreement, under which rent income is linked to the rents for joint management units, is used for Kamiyacho Trust Tower, and the number in parentheses of the occupancy rate of the property is the occupancy rate of the entire joint management units. (3) Regarding the office portion of the Kioicho Building, MTR leases the building portion of the Kioicho Building from a fiduciary trust company under a master lease agreement and subleases it to tenants. For the residential section, MTR enters into a pass-through master lease agreement. The occupancy rates stated above are those under the sublease agreement for the office portion and the master lease agreement for the residential portion. The figure in brackets for the occupancy rate of the building is the occupancy rate based on the sublease agreements of the office and residential portions of the building. (4) A master lease agreement under which rent income is linked to rents under a sublease agreement has been concluded for Sendai MT Building, and the figure in brackets for the occupancy rate of the building is the occupancy rate based on the sublease agreement. (5) A master lease agreement under which rent income is linked to rents under a sublease agreement has been concluded for Osaki MT Building, and the figure in brackets for the occupancy rate of the building is the occupancy rate based on the sublease agreement. (6) The agreement used for the Midosuji MTR Building is the master lease pass-through model, and the occupancy rate in brackets for the building is that based on the sublease agreement. (7) MTR leases the land and building of Hiroo MTR Building, Tenjin Prime and SHIBUYA FLAG from a fiduciary trust company under a master lease agreement and subleases it to tenants. The occupancy rates of the above properties are for those under the sublease agreements. (8) The numbers in parentheses of subtotal and total occupancy rates represent occupancy rates based on sublease agreements for Kioicho Building, Osaki MT Building, Sendai MT Building and Midosuji MTR Building and the occupancy rate calculated based on the occupancy rate of the entire joint management units for Kamiyacho Trust Tower. 66#68Notes (5) P.51~54 (1) The Tokyo Shiodome Building is a co-owned building and the floor area of 71,806.84m2 is calculated by multiplying MTR's co-owned interest (ratio of 375,178/1,000,000) with the total floor space. (2) The building of Kamiyacho Trust Tower is sectionally owned and the building area indicated is the total floor area of one building. The floor area for exclusive use owned by the trust fiduciary having MTR as the only trust beneficiary is 7,595.44 m2. (3) MTR has acquired sectional ownership of the Kioicho Building. The total floor space stated is the total floor space for the portion of one building that represents the sectional ownership. The exclusive portion of the floor space owned by a fiduciary of the trust in which MTR is the sole beneficiary is 24,598.85 m2. (4) The Sendai MT Building is a co-owned building, and the floor area of 13,003.41m2 is calculated by multiplying MTR's co-owned interest (ratio of 90,845/300,000) with the total floor space. (5) The Osaki MT Building is a co-owned building, and the floor area of 24,495.21m2 is calculated by multiplying MTR's co-owned interest (ratio of 907,880/1,000,000) with the total floor space. (6) Probable Maximum Loss (PML) refers to the expected maximum loss ratio caused by an earthquake based on a loss confidence value of 90%. The expected maximum-level earthquake refers to an earthquake that occurs once every 50 years with a 10% excess-probability. This means that an earthquake of this magnitude statistically occurs once every 475 years. (7) The rental revenues and property-related expenses of ON Building,SHIBUYA FLAG and Kohnan Sagamihara-Nishihashimoto are not disclosed because tenants' consent to disclosure has not been obtained. (8) NOI earnings yield is calculated by converting NOI in the fiscal period ended September 2022 to an annual basis. (9) Shangri-La Tokyo is a unit ownership building, but the area of the entire building of MARUNOUCHI TRUST TOWER MAIN and MARUNOUCHI TRUST TOWER NORTH is stated. The floor area of the exclusive element owned by the trustee with MTR as the sole beneficiary is 22,300.31 m (area written in the registration book). (10) The grand total of total floor area for the entire buildings of the Hilton Odawara Resort & Spa is stated. The floor area of the exclusive element owned by the trustee with MTR as the sole beneficiary (50/100) is 25,302.83 m (11) Courtyard by Marriott Tokyo Station is a unit ownership building, and the total floor area of the entire building of KYOBASHI TRUST TOWER is stated. The floor area of the exclusive element owned by the trustee with MTR is 5,502.63 m (area written in the registration book). The quasi-co-ownership interest in the Courtyard by Marriott Tokyo Station owned by MTR is 93.5%. (12) Courtyard by Marriott Shin-Osaka Station is a co-owned building. The interest in the Courtyard by Marriott Shin-Osaka Station owned by MTR is 74%. (13) The floor area of Frespo Inage is the area of the real estate trust associated with the real estate trust's beneficiary rights. (14) This is a co-owned building, and the area that is obtained by multiplying the above area by MTR's co-owned interest (1/3) is 2,606.81 m. (15) Portfolio PML is calculated by assuming an earthquake with an epicenter close to Tokyo's Minato Ward out of multiple earthquake scenarios. P.55 (1) In properties with trust beneficiary rights, it is classified as a "Leasing directly to tenants" if MTR conclude sublease contracts directly with tenants after an owner, which is the fiduciary trust company and lessor, and MTR, which is the trust beneficiary and lessee, conclude a master lease contract. (2) Along with fixed annual rent, the total amount of property tax and city planning tax equivalent amount and casualty insurance equivalent amount is paid as variable rent. (3) The rent received from subtenant by tenant etc. (4) The amount calculated by multiplying the total income generated from these joint management units by the ownership shares based on the exclusively owned area owned by MTR. (5) The system in which 25 floors from the sixth to the 30th floors of Kamiyacho Trust Tower are designated as joint management units. Each unit owner signs a lease agreement with MORI TRUST CO., LTD., designating the unit owner as the lessor and MORI TRUST CO., LTD. as the lessee, and the lessee subleases each floor as a joint management unit. 67#69Notes (6) P.57 (1) Based on the loan agreements, interests were accrued excluding the first day of the borrowing period. Thus, no interest was incurred for the fiscal period ended August 31, 2023. P.58 (1) Due to conducting a 2-for-1 split of investment units with February 28, 2023, as the record date and March 1, 2023, as the effective issue date, the total amount of outstanding investment units following the split was 2,640,000, and in addition, in conducting the merger, MTR allotted and delivered 1.84 MTR investment units per 1 MTH investment unit owned on March 1, 2023, and due to the issuing of 920,000 new investment units, the total number of outstanding investment units became 3,560,000. P.61 (1) At a Board of Management meeting held on September 29, 2003, it was decided that the calculation rate for remuneration in the rate stated above will be reduced. (2) At a Board of Management meeting held on January 26, 2023, it was decided that the calculation rate for remuneration in the rate stated above will be reduced. 68#70Disclaimer . • . . • • The purpose of this document is to provide information. It is not intended to solicit investment or recommend investment in specific issues. MTR caution readers to contact their securities company representative if intending to acquire or sell any of MTR's investment products or investment units. The transaction prices of real estate investment securities may decrease due to changes in the prices or profitability of real estate held as assets, the deterioration of the financial condition of the issuer, changes in market conditions, or other factors resulting in a loss incurred. When you make an investment, please do so at your own discretion and risk. This document does not constitute a disclosure document or asset management report pursuant to the Financial Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations, cabinet orders, ministerial ordinances, or cabinet office ordinances based on the Financial Instruments and Exchange Act or the Act on Investment Trusts and Investment Corporations, regulations of the Tokyo Stock Exchange or other related rules. The information provided in the document is based on the information available as of the date of the document. MTR do not guarantee the accuracy, completeness, certainty, appropriateness, fairness, etc. of the information provided. While due care is paid regarding the inclusion of information in this document, please understand that the information may contain errors, etc., and the information in this document may be revised without notice. This document includes forward-looking statements which are based on certain preconditions and assumptions based on the information available as of the date of the document. These statements are affected by changes in the preconditions or other factors that may occur in the future and do not guarantee future financial performance, business results, financial conditions, etc. MTR prohibit duplication, diversion or other unauthorized use of the information provided in this document without prior approval. 69