ORIX JREIT : Announces Financial Results for 33rd Fiscal Period

＜For Immediate Release＞

Provisional translation only

October 17, 2018

ORIX JREIT Inc.

(TSE:8954) Teruo Ozaki Executive Director

ORIX Asset Management Corporation Shinpei Yano

General Manager of General Affairs and Accounting Department Tel: [phone]

ORIX JREIT Announces Financial Results for 33rd Fiscal Period

Distribution per unit: ¥3,489

Overview of Financial Results

ORIX JREIT Inc. (OJR) today announced the financial results for its 33rd fiscal period ended August 31, 2018.

Operating revenues for the period were ¥23,754 million, income before income taxes was ¥9,643 million, net income was ¥9,629 million, and the distribution amount will be ¥9,629 million, or ¥3,489 per unit. The pay-out ratio will be 99.7%.

As of August 31, 2018, OJR's total assets were approximately ¥673,068 million, interest-bearing liability was ¥288,017 million (composed of ¥273,517 million in loans and ¥14,500 million in investment corporation bonds), and total net assets were ¥348,408 million, or ¥126,235 per unit.

Highlights

Dispositions and Acquisitions

During the 33rd fiscal period, OJR acquired Hotel Universal Port (acquisition price: ¥34,000 million) on April 2, 2018. As a result, the OJR portfolio consisted of 111 properties at a total investment of ¥668,947 million (on an acquisition price basis) as of August 31, 2018.

Portfolio Profile

As noted above, on August 31, 2018, OJR owned a total of 111 properties, consisting of 53 office buildings, 29 retail facilities, 14 residential properties, five logistics facilities and 10 hotels and others, and was leasing approximately 1,186,212,97 m² of space to 1,026 tenants. OJR's portfolio occupancy rate as of August 31, 2018 was approximately 99.4%.

The total acquisition price of OJR's portfolio of 111 properties was ¥668,947 million as of August 31, 2018.

The portfolio's appraisal value, evaluated by four major Japanese real estate appraisers, was ¥755,890 million as of August 31, 2018.

Equity Financing and Debt Financing

OJR issued new investment units through public offering (76,160 investment units, total paid-in amount (issue value) of ¥11,880 million) on March 13, 2018 and issued new investment units through third-party allotment (3,810 investment units, total paid in amount (issue value) of ¥594 million) on April 11, 2018 to procure funds for acquisition of Hotel Universal Port.

OJR took out long-term loans of ¥4,000 million in March 2018, ¥5,500 million in April 2018 and ¥3,000 million in August 2018 to repay loans of which repayment dates arrived, and issued investment corporation bonds of ¥5,000 million in July 2018 to repay investment corporation bonds.

As a result of the activities above, as of August 31, 2018, outstanding loans amounted to ¥273,517 million, the balance of investment corporation bonds stood at ¥14,500 million, and the balance of interest-bearing liability totaled ¥288,017 million. The LTV (based on total assets) (Note 1) was 42.8%, LTV (based on unitholders' capital) (Note 2) was 46.2%, the fixed-rate debt ratio (Note 3) was 92.8%, and the long-term debt ratio (Note 4) was 88.5%.

Note 1: "LTV (based on total assets)" is the figure obtained by dividing the balance of interest-bearing liability by total assets stated on the balance sheet and is rounded to the first decimal place.

Note 2: "LTV (based on unitholders' capital)" is the figure obtained by dividing the balance of interest-bearing liability by the sum of unitholders' capital on the balance sheet and the balance of interest-bearing liability and is rounded to the first decimal place.

Note 3: "Fixed-rate debt ratio" is the figure obtained by dividing the balance of fixed-rate debt (including loans whose rates were fixed through interest rate swaps) by the balance of interest-bearing liability and is rounded to the first decimal place.

Note 4: "Long-term debt ratio" is the figure obtained by dividing the balance of long-term interest-bearing liability

(except for long-term debt to be reimbursed or redeemed within one year) by the balance of interest-bearing liability and is rounded to the first decimal place.

Forecasts for the 34th and 35th Fiscal Periods

In accordance with Tokyo Stock Exchange listing requirements, OJR here announces financial results forecasts for its 34th fiscal period, which runs from September 1, 2018 through February 28, 2019. For the 34th fiscal period, OJR forecasts operating revenues of ¥23,859 million, income before income taxes of ¥8,927 million, and net income of ¥8,908 million. The estimated distribution per unit for the 34th fiscal period is ¥3,350.

The financial results forecasts for the 35th fiscal period, from March 1, 2019 through August 31, 2019, are as follows: operating revenues of ¥24,155 million, income before income taxes of ¥9,486 million, and net income of ¥9,467 million. The estimated distribution per unit for the 35th fiscal period is ¥3,430.

Overview of OJR

OJR was established on September 10, 2001, and was listed and commenced trading on the Tokyo Stock Exchange on June 12, 2002 as the fourth Real Estate Investment Trust in Japan, or "JREIT," to be listed. A JREIT is an externally managed property fund formed under the Act on Investment Trusts and Investment Corporations of Japan. ORIX Asset Management Corporation, a wholly owned subsidiary of ORIX Corporation (TSE: 8591, NYSE: IX (ADR)), is the asset manager of OJR. OJR is a diversified JREIT that invests in high quality office buildings, retail facilities, residential properties, logistics facilities, and hotels and others, aiming to provide stable cash flow and healthy asset growth over the medium to long term.

Notices

Information Disclosure to Investors

OJR maintains a policy of timely disclosure of important information in both the English and Japanese languages. For more information on OJR, please visit our website athttps://www.orixjreit.com.

Forward-looking Statements Disclaimer

In making forward-looking statements about the forecasts for the 34th and 35th fiscal periods, certain assumptions have been made. We consider that these assumptions were appropriate and reasonable based on the information available to us when we made the forecasts. However, our actual operating results, and therefore the distribution per unit, may differ from our expectations and will be affected by a number of factors, many of which are beyond our control, or may not be capable of being foreseen or accurately predicted. For example, our actual distribution amount could be affected by the rental revenues we actually receive from our properties, and/or our operating expenses, interest expenses and the ability of our tenants to meet their financial obligations during the relevant period. It may also be affected by economic conditions in Japan and conditions relating to the real estate market in Japan, particularly in Tokyo. These factors and others could also affect the validity of the assumptions that we used in the preparation of our forecasts. No assurance can be given by us or by any other party that our forecasts will prove accurate.

(Summary Financial Information Attached)

* This provisional English translation of the original Japanese document is provided solely for informational

purposes. Should there be any discrepancies between this translation and the Japanese original, the latter shall take precedence.

**OJR is a real estate investment corporation (commonly referred to as a JREIT) listed on the Tokyo Stock

Exchange JREIT Section (TSE: 8954) whose objective is to provide stable income returns to investors over the medium to long term through investing in diversified types of quality real estate, mostly office buildings and properties in the Greater Tokyo Area. ORIX Asset Management Corp., a wholly owned subsidiary of ORIX Corp.

(TSE: 8591), provides the asset management services for OJR.

ORIX JREIT Inc. BALANCE SHEETS

As of February 28, 2018 and August 31, 2018

As of February 28, 2018

As of

August 31, 2018

(In millions of yen)

Assets Current assets:

Cash and deposits including trust accounts Rental receivables

Consumption taxes refundable Investment in finance lease Prepaid expenses

Other current assets

Total current assets

Property and equipment, at cost: Land including trust accounts

Buildings and structures including trust accounts Building improvements including trust accounts Machinery and equipment including trust accounts Construction in progress

Less: Accumulated depreciation

Net property and equipment

Other assets:

Leasehold interests including trust accounts Long-term prepaid expenses

63,589

45,026

683 1,050

－ 645

2,395 2,418

139 114

9 9

66,817 49,264

415,789 436,388

173,012 184,910

51,652 54,076

5,407 5,503

16 645,877 (60,901)

16 680,895 (64,955)

584,975 615,939

4,391 4,371

1,735 1,629

Others

1,795 1,863

Total assets

659,716

673,068

Liabilities and Net assets Liabilitie s

Current liabilities:

Trade and other payables Long-term debt due within one year Accrued expenses

Rents received in advance Income taxes payable Consumption taxes payable Other current liabilities

Total current liabilities Non-current liabilities: Long-term debt

Leasehold and security deposits received Asset retirement obligations

2,841

2,860

32,760 33,160

468 468

3,441 3,612

14 13

454 403

－ 322

40,383 40,437

255,257 254,857

28,765 29,199

Total liabilities

165 324,570

166 324,660

Net assets Unitholders' capital

Units authorized: 10,000,000 units

Units issued and outstanding: 2,680,000 units as of

February 28, 2018 and 2,760,000 units as of August 31, 2018 Retained earnings

323,282 335,757

11,862 12,650

Total net assets

Total liabilities and net assets

335,145 659,716

348,408 673,068