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Investor Presentaiton

0 10 20 20 Real Estate Fund (4) Current Investment Market 1. Summary 2. How to Increase Corporate Value 3. Appendix 4. Financial Data Financial Results Σ Business Governance Asset Management Contrasting rental market with solid NOI*¹ growth in the industrial and residential by tight supply/demand balance while weak in the gateway cities' office by prolonged WFH and stagnant economy. Only high-quality office keeps attracting tenant and investor. Cap rate*2 expansion (price decline) under the rate hike process across the developed economies, though inflation-linked rent growth partially offsets the impact. *1 NOI (Net Operating Income) is all revenues including rent form the property minus all operating expenses. *2 Cap Rate is the ratio of the NOI to its current value. Rental Market Source: Created based on data from MSCI* * Reproduced by permission of MSCI Inc. ©2023. All rights reserved (pt) Net Operating Income (%) Vacancy Rate (US) (%) Cap Rate (US) 25 25 25 10 15 10 Residential 5 Industrial Office 1999 2002 2005 2008 2011 2014 2017 2020 2023 0 (year) 5 1999 Note: Calculated based on NOI of end of March, 1999 being 1 JP JAPAN POST BANK BANK 20 Office 15 6 2002 Residential Industrial 2005 2008 2011 2014 2017 2020 2023 (year) 0 2 Transaction Market Source: Created based on data from MSCI* * Reproduced by permission of MSCI Inc. ©2023. All rights reserved (%) Cap Rate & Interest Rate (US) 10 8 Europe 8 Cap Rate Japan 4 2006 2008 2010 10 6 US 4 2 Mw Long-term Rates 2012 2014 2016 2018 2020 2022 (year) 0 2006 2008 2010 2012 2014 2016 2018 2020 2022 Note: The shaded area in the graph shows the interest rate rise Copyright© JAPAN POST BANK All Rights Reserved. 47 (year)
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