Investor Presentaiton slide image

Investor Presentaiton

(pts)Above 0=Good (%) • Market Review ~ Sales Market Real Estate Market Condition⚫ Other~ Expected Cap Rate 10-Year Government Bond Interest Rate and Expected Cap Rate 10-year government bonds compound interest Market Condition and Transaction Volume Land Price/ Electricity Futures Prices Proportion of Rise (Decline) in Land Prices in the Greater Tokyo Area Real Estate Market Condition Increase over 6% (%) Flat Increase b/w 3% and 6% Increase b/w 0% and 3% Decrease 100 5 Expected cap rate of class A office buildings in Marunouchi and Otemachi 40 80 4.5 60 4 3.5 3 2.5 2 1.5 1 40 20 20 0 0 10Q1 10Q3 11Q1 11Q3 12Q1 12Q3 13Q1: 13Q3 14Q1 14Q3 15Q1 15Q3 16Q1 16Q3 17Q1 17Q3. 18Q1 18Q3 19Q1 19Q3 20Q1 20Q3 21Q1 21Q3 22Q1 -20 Residential and housing lot sales 0.5 Logistics (residential lot) 0 Building leasing -40 -0.5 '15 '16 '17 '18 '19 '20 '21 '22 '15 '16 '17 '18 '19 '20 '21 '22 Proportion of Rise (Decline) in Land Price in the Osaka Area Increase over 6% (%) Flat 100 Increase b/w 3% and 6% Increase b/w 0% and 3% Decrease 50 50 Source: Prepared by NREAM based on data from the Japan Real Estate Institute and the Ministry of Finance Note: Figures are as of each quarter. Expected cap rate shows median figures. Expected Cap Rate by Real Estate Investor Bottom (%) 6.0 Office (Class A office building in Marunouchi, Tokyo) Residential (studio type in Jonan, Tokyo) Retail (urban central stores in Ginza, Tokyo) Logistics (Multi-tenant type in Koto Ward, Tokyo) Hotel (types specializing in lodging in Tokyo) 5.5 5.0 4.5 4.0 40 3.5 3.0 '15 '16 '17 '18 '19 '20 '21 '22 0 Source: The Land Institute of Japan 10Q1 10Q3 11Q1 SOLL 12Q1 12Q3 13Q1) 13Q3 14Q1 14Q3 15Q1 15Q3 16Q1 16Q3 17Q1 17Q3 18Q1 18Q3 19Q1 19Q3 20Q1 20Q3 21Q1 21Q3 22Q1 Source: Prepared by NREAM based on data from the Ministry of Land, Infrastructure, Transport and Tourism Changes in Electricity Futures Prices (as of Sep. 22, 2022) Real Estate Transaction Cycle in Tokyo Rise 20 15 Number of transactions YoY change(Y) Sep.'12 10 Mar. '22 5 40 Sep. '21 Sep.'19 Land price YoY change (%) 30 10 20 30 -30 -20 Fall Sep.'08 Sep.'07 -10 Sep. '20 -15 -20 Peak Source: Prepared by NREAM based on data from the Japan Real Estate Institute Note: Expected cap rate shows median figures. Source: Prepared by NREAM based on data from the Ministry of Justice and the Japan Real Estate Institute Note: Land prices are annualized. The year-on-year rate of change of the number of transactions (from October of the previous year to September of the target year) and the urban land price (as of September of the target year) are plotted. -Eastern Japan Base Load (Yen/KWH) Western Japan Base Loan Futures prices for future contact months 50 20 10 0 '21 '22 '23 '24 Source: Prepared by NREAM based on data from the Tokyo Commodity Exchange Notes: Eastern Japan is a 50 Hz area and Western Japan is a 60 Hz area. Past values are average futures prices with the following month as the contract month. 68 69
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