Investor Presentaiton

Japan Logistics Market Outlook Significant new supply for 2023 and 2024 is major factor behind rising vacancy rate, loosening supply-demand balance. 1 2 3 4 5 Due to the booming logistics and supply chain demand during COVID- 19, a large supply of new logistics facilities became available in the Greater Tokyo market in 2022 and completion will continue in 2023. Demand on the other hand is outpaced by the influx and absorption of the new supply. Vacancy rates remains as a continuing concern(1). New Large Multi-Tenant (LMT) logistics facility supply for Greater Tokyo rose by an unprecedented 324,000 tsubo in 1Q2023, above the record 260,000 Tsubo. The increased supply has led to a 2.5% vacancy rate in Greater Tokyo, the first time surpassing 2% since 1Q2019. Although robust demand for logistics facilities is displayed by logistics operators and e-commerce businesses, the new supply still outstrips net absorption and exert impact on vacancy rate of existing properties. Tenants now enjoy an abundance of options in the new market and yet are cautious with expansion in the midst of economic uncertainty. Logistics operators are facing higher operating costs due to labour shortages and high energy prices. This has resulted in landlords having challenges in increasing rents since tenants are operating on thin margins. Forecasted rents are expected to be flattish moving into 2023 and 2024 for most of Greater Tokyo, apart from Tokyo Bay Area due to lack of supply and its location being closest to Tokyo City. 450,000 tsubo 400,000 350,000 300,000 250,000 Supply/ Demand Balance and Vacancy Rate for Greater Tokyo (2) 10% ▶Forecast 9% 8% 7% 6% New Supply Vacancy Rate (Overall). 5% 4% Net Absorption Vacancy Rate (More than one year old) 3% 2% 1% 0% 200,000 150,000 100,000 50,000 0 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Effective Rent Index for Greater Tokyo, by Area (2) Vacancy Rate Effective Rent Index (JPY/tsubo/month) Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q-o-Q Overall 4.7% 4.4% 5.2% 5.6% 8.2% 4,520 4,520 4,550 4,540 4,540 ±0.0% Greater Tokyo More than one year old 0.9% 1.3% 1.7% 1.1% 2.5% Overall 13.2% 13.0% 10.7% 5.3% 4.7% 7,530 7,540 7,560 7,580 7,600 +0.3% Tokyo Bay Area More than one year old 0.2% 0.0% 0.0% 0.0% 5.7% Overall 0.9% 1.9% 4.3% 1.3% 0.5% 5,190 5,190 5,170 5,170 5,190 +0.4% Greater Tokyo Gaikando Area More than one year old 0.0% 0.4% 1.4% 1.0% 0.0% Overall 5.4% 4.8% 5.8% 6.1% 10.1% 4,510 4,510 4,520 4,530 4,530 ±0.0% Route 16 Area More than one year old 0.7% 1.5% 1.9% 0.8% 2.7% Overall 4.3% 4.0% 3.9% 7.7% 10.7% 3.620 3,620 3,620 3,620 3,620 ±0.0% Ken-O-do Area More than one year old 1.7% 1.5% 1.7% 1.7% 3.4% Notes: (1) Savills Japan Logistics Japan March 2023 (2) Based on CBRE Japan Logistics MarketView Q1 2023 ESR-LOGOS REIT 37

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