Global One Real Estate Investment : Financial Results for the Six-Month Period Ended September 2021 (the 36th Period) (Explanatory Material)

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Financial Results for the Six-Month Period Ended September 2021 (the 36th Period)

(Explanatory Material)

16 November 2021

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Overview of Global One Real Estate Investment Corporation

Portfolio (as of 30 September 2021)

Selective investment in high-quality office buildings which are closer to nearby stations, newly or recently built and large in size.

GOR	Average of
other office REITs (*)

Financial Base and Sponsors (as of 30 September 2021)

Solid financial base supported by financial sponsors

CLOSER	Walking distance:	100.0％		77.8％
0 - 5 min.
NEWER	Average building age	17.5 years		24.5 years
Portfolio PML
％		％
		1.9		2.1
	Average	17.3 billion yen		8.8 billion yen
LARGER	acquisition price
Average	11,986 sqm		8,545 sqm
	total leasable area
Major 3 metropolitan areas		Total acquisition price
	other than Tokyo
Metropolitan Area

LTV

(Interest-bearing debt / total assets)

Ratio of long-term / fixed interest-bearing liabilities

Average financing term

Average interest rate

Rating

Book value basis

47.1%

Appraisal value basis 40.0%

89.9%

6.9 years

0.64%

AA- Stable (JCR)

									11	properties,
			8.9％			Yodoyabashi	191.1	billion yen
								4.1%
							Midosuji	Otemachi
					4.8%	12.3%
Tokyo suburban	areas		Saitama	Hirakawacho
11.9%
								9.5%
21.3%			Yokohama
							Tokyo Central
					9.4%		Minami-Aoyama
						Shinagawa	18.3%			5 Wards
					6.3%
					Sengokuyama	44.5%
							Toyosu
Tokyo 23 Wards other than			Kinshicho 4.4%
11.0%
			8.1%
	the central 5 Wards
	25.3%

		Provides expertise in
		real estate investment
		and management
Real estate investment/
Finance
management

									Japan Credit Rating
									Agency, Ltd. (JCR)
							Provides expertise in
							the financial and trust		Long-term Issuer Rating
							businesses		AA-
	Finance		Real estate brokerage					（Stable）
									[Asset Manager]
							Provides expertise in
							real estate investment
	Real estate development/operation			and management

(*) "Other office REITs" refers to J-REITs (excluding GOR) which have an investment policy where 70% or a higher percentage (based on acquisition prices) of funds are allocated to commercial real	3
estate of which main use is office. Average figures are calculated based on figures indicated in the most recent disclosure materials of each REIT that could be confirmed as of 30 September 2021.

Table of Contents

I Preface

1. Efforts to Increase Unitholder Value..……………………………….…………………….. 6
2. Financial Highlights…..…………………………………………………………………….………. 7
3. Outlook of Office Market ………………………..……………………………………………... 8
4. Interim Initiatives ……………………………………..………………………………….……..….. 10
5. Acquisition of Own Investment Units………………………..……………………..…….. 11

II Financial Results

1. Overview of Financial Results………………………………………………………………… 14
2. Performance Forecast……………………………………………………………………………. 16
3. Result and Forecast of DPU………………………..…………………………………………. 18

III Portfolio Management

1. Internal Growth………………………………………………………………………………………. 20
2. External Growth……………………………………………………………………………………… 27
3. Financial Management…………………………………………………………………………… 29
4. Promotion of ESG …………………………………………………………………………………. 31

IV Reference Material

1. Portfolio Data ……………………………………………………..………………………………… 40
2. Financial Data ……………………………………………………..………………………………… 61
3. Overview of Asset Manager ………………………………………………..………………… 69

The following abbreviations will be used for the following pages:

"GOR" = Global One Real Estate Investment Corporation "GAR" = Global Alliance Realty Co., Ltd.

"Otemachi" = Otemachi First Square "Hirakawacho" = Hirakawacho Mori Tower "Minami-Aoyama" = Rakuten Crimson House Aoyama "Sengokuyama" = ARK Hills Sengokuyama Mori Tower "Kinshicho" = Arca Central

"Toyosu" = Toyosu Prime Square "Shinagawa"= Shinagawa Seaside West Tower "Yokohama" = Yokohama Plaza Building

"Saitama" = Meiji Yasuda Life Insurance Saitama-Shintoshin Building "Midosuji" = Meiji Yasuda Life Insurance Osaka Midosuji Building "Yodoyabashi" = Yodoyabashi Flex Tower

Unless otherwise indicated, amounts are rounded down and percentages, number of years, walking time to the station and areas are rounded.

The impacts of the following splits of investment units are taken into consideration for "After split(s)" or "Adjusted after split(s)" in the material.

• 2-for-1split of investment units with 1 April 2014 as the effective date
• 4-for-1split of investment units with 1 April 2018 as the effective date

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I Preface

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