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Investor Presentaiton

Assumptions for Earning Forecasts for Feb. 2023 (15th) FP / Aug. 2023 (16th) FP The impact of increases in electricity expenses, etc. is expected to be mitigated through internal growth, with gains on sales expected to lead to increased earnings. 15th FP: ¥3,312 per unit (¥23 higher than forecast) / 16th FP: ¥3,261 per unit Main factors in change of DPU (\/unit) Feb. 2023 (15th) Feb. 2023 FP Acquisition PROUD FLAT Nezu Yanaka Disposition NRE Higashi-nihonbashi Building (50%), 8 residential properties Aug. 2023 FP Acquisition: - Disposition: NRE Higashi-nihonbashi Building (50%) Aug. 2023 (16th) Increased Absence of extraordinary loss distribution factors Decreased distribution factors Contributions to internal Distributions from gain reserves on sales (natural disasters) +10 Decrease in asset management fees +5 Decrease in interest expenses +3 Increase in rent and Others -4 common area charges +37 Increase in utility expenses received +51 Absence of cancellation October 18, 2022 Reported gain on sales 225 3,312 (Note 2) received Increase in rent and common area charges Increase in utility expenses +40 +10 (Forecast from 6 penalty fees, etc. -26 3,300 of 8 residential properties months prior: 3,289 yen) Increase in cancellation penalty fees, etc. +17 65 61 -81 103 103 Increase in interest expenses 3,261 -6 67 -66 13 -19 69 -12 3,235 (Note 1) Increase in utility expenses paid -90 Impact of property acquisitions +2 (PROUD FLAT Nezu Increase in utility expenses paid -28 Impact of property Decrease in property management fees +15 Yanaka plus 3 other properties) Increase in taxes and acquisition +4 Decrease in repair Impact of property public dues -18 (PROUD FLAT Nezu expenses +8 dispositions -21 Increases in depreciation Yanaka) (Ichibancho stear) Others -14 (NRE Higashi-nihonbashi Building) 3,209 and amortization Others -16 Impact of property -4 dispositions -16 3,192 (NRE Higashi-nihonbashi (8 residential properties) Building) (8 residential properties) Impact of deterioration in electricity expenses, etc. -38 Impact of deterioration in electricity expenses, etc. -21 Rental business Aug. 2022 FP DPU result Rent revenues (Portfolio properties) Others expenses (Portfolio properties) External growth (Note 3) Gain on sales Feb. 2023 FP DPU forecasts Rent revenues (Portfolio properties) Rental business expenses (Portfolio properties) Others External growth (Note 3) Aug. 2023 FP DPU forecasts (Note 1) In the earnings forecasts on this page, the distributions per unit excluding gains on sales (virtual distributions) for each period show the amounts excluding the increase in asset management fees II, related to gains on sales. Therefore, the virtual distributions for the fiscal period ending August 2022 on this page differ from the figures shown on page 4. (Note 2) To avoid taxes in the fiscal period ending February 2023, an amount exceeding 3,300 yen will be distributed due to gains on sales. (Note 3) Includes the impact of property acquisitions and sales during the last fiscal period. 30
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