Global One Real Estate Investment : GOR updates “Disclosure Documents”

Global One Real Estate Investment Corp.

(Code: 8958)

Semiannual Report

For the 38th Period

From 1 April 2022 to 30 September 2022

https://www.go-reit.co.jp/en/

About GOR

The investment theme of GOR is to acquire superior office buildings that have a competitive edge

Global One Real Estate Investment Corp. ("GOR") is a Japanese Real Estate Investment Trust (J-REIT) listed on the Tokyo Stock Exchange (TSE: 8958) that builds upon considerable real estate expertise in pursuit of maximizing unitholders' returns. GOR recognizes the importance on investing in properties that have medium- to long-term competitiveness, and the factors of "closer" (i.e., conveniently situated), "newer" (recently built) and "larger" (large-sized) are taken into consideration accordingly. However, GOR does not strongly adhere to these factors and conducts investments focusing on the unique competitiveness of properties, taking into account area, location and building.

https://www.go-reit.co.jp/en/Address: 4-1Kojimachi, Chiyoda-kuTokyo, Japan 102-0083

Phone: [phone]

Table of Contents
Corporate Profile / Milestones --------------------------------------------	2
Financial Highlights ---------------------------------------------------------	6
Investment Unit Price Performance / Business Structure ----------	7
Property Map -----------------------------------------------------------------	8
Portfolio List -------------------------------------------------------------------	9
Property Overview ----------------------------------------------------------	11
Portfolio Highlights ---------------------------------------------------------	15
Financial Summary
Balance Sheet ------------------------------------------------------------	16
Statement of Income and Retained Earnings---------------------	18
Statement of Changes in Net Assets--------------------------------	19
Statement of Cash Distributions ------------------------------------	20
Statement of Cash Flows----------------------------------------------	21
Notes to Financial Statements ---------------------------------------	22
Independent Auditor's Report--------------------------------------------	37
Disclaimer / Contact ---------------------------------------------------------	40

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Corporate Profile / Milestones

GOR was established in April 2003 under the Act on Investment Trusts and Investment Corporations of Japan ("the Investment Trust Act"). In September 2003, GOR achieved an IPO on the Real Estate Investment Trust Section of the Tokyo Stock Exchange (Securities Code:8958) where an additional 48,000 units were issued and 23,623 million yen in funds were raised.

The investment theme of GOR is to acquire superior office buildings that have a competitive edge

GOR primarily invests in real estate (comprising office buildings and parcels of land on which those buildings are situated), securities backed by that real estate, trust beneficial interests in that real estate, and other types of assets. Target regions include Japan's three major metropolitan areas (the Tokyo Metropolitan Area, the Chubu Area, and the Kinki Area) as well as other major cities with populations of over 500,000 that are identified as government-designated cities. The factors of "closer" (i.e., conveniently situated), "newer" (recently built) and "larger" (large-sized) are taken into consideration accordingly. However, GOR does not strongly adhere to these factors and conducts investments focusing on the unique competitiveness of properties, taking into account area, location and building.

GOR Portfolio includes 11 office buildings with the following features (as of 30 September 2022).

Portfolio occupancy rate	96.7 %
Average building age	Approx. 18.5 years
Total acquisition price	191,194 million yen
Average acquisition price	17.3 billion yen
Total leasable area	131,844 sqm
Average leasable area	11,986 sqm

GOR's financing activities

In order to procure funds, GOR may borrow funds and issue investment corporation bonds, as well as issue investment units. With regard to interest-bearing liabilities, GOR makes it a principle to borrow long-term loans payable with fixed interest rates from the perspective of managing assets over the long term and reducing the risk of fluctuating interest rates in the future.

During the period under review, GOR decided on 9 September 2022 to issue fresh bonds, as described below, in order to repay the Series No.10 unsecured bonds (3,000 million yen) that expired 28 September 2022. The payment was completed on 27 September 2022.

Name of bond	Series No. 16 unsecured bonds (with pari passu clause) (Green Bonds)
Issue amount	3,000 million yen
Issuance price	100 yen per 100 yen face value
Interest rate	0.50% per annum
Payment date	27 September 2022
Collateral/guarantee	The bonds were issued on an unsecured and unguaranteed basis with no
	specific assets reserved.
Redemption date and method	The total amount to be redeemed on 27 September 2027. The investment
	corporation bonds may be repurchased and cancelled at any time after the date
	of payment unless otherwise specified by the transfer agent.
Ratings	AA- (Japan Credit Rating Agency, Ltd.)

In addition, GOR borrowed 5,000 million yen on 30 September 2022 to execute repayment of existing loans of 5,000 million yen due for repayment on 30 September 2022.

As of 30 September 2022, unitholders' capital (net amount) was 92,401 million yen, the total number of units issued and outstanding was 948,996, the unpaid loan balance was 75,500 million yen, and the total balance of investment corporation bonds issued and outstanding was 18,700 million yen.

GOR's credit rating status as of 30 September 2022:

Rating agencies		Rating descriptions
Japan Credit Rating Agency, Ltd.	Long-term Issuer Rating:	AA-
	Outlook:		Stable
	Bonds:		AA-
		2

Financial results and dividend distributions

GOR recorded operating revenue of 5,691 million yen, operating profit of 2,679 million yen, ordinary profit of 2,293 million yen, and net income of 2,292 million yen for the 38th Period.

Regarding dividends, while anticipating the application of tax exemption (under Article 67-15 of the Act on Special Measures Concerning Taxation) that will allow profit distributions to become tax deductible, GOR decided to distribute 2,302 million yen, which is the amount of unappropriated retained earnings after adding 9 million yen of reversal of reserve for reduction entry. As a result, dividend per unit is 2,426 yen.

Significant Subsequent Events

(a)Issuance of new investment units

GOR resolved at board meetings held on 17 November 2022 and 29 November 2022 to issue new investment units as follows. Payment for the issuance of new investment units through public offering and through third-party allotment was completed on 5 December 2022 and 22 December 2022, respectively. As a result, unitholders' capital (net amount) totaled 100,016,522,540 yen and the total number of investment units issued and outstanding increased to 1,022,826 units as of 22 December 2022.

(1) Issuance of new investment units through public offering (primary offering)

	Number of investment units to be offered	70,330	units
	Issue price (offer price)	106,762	yen per unit
	Total issue price (total offer price)	7,508,571,460	yen
	Amount to be paid in (issue value)	103,148	yen per unit
	Total amount to be paid in (total issue value)	7,254,398,840	yen
	Payment date	5 December 2022
	Use of funds	Application to part of funds for acquisition of
		THE PEAK SAPPORO and Tomatsu Building,
		described later in the section "(c)Acquisition of
		Asset (including scheduled acquisition)."
(2) Issuance of new investment units through third-party allotment
	Number of investment units to be offered	3,500	units
	Amount to be paid in (issue value)	103,148	yen per unit
	Total amount to be pain in (total issue value)	361,018,000	yen
	Payment date	22 December 2022
	Allotee	Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.
	Use of funds	Application to part of funds for future acquisition
		of specified assets or repayment of loans

(b)Borrowings

GOR borrowed funds to be applied to part of the funds for acquisition of THE PEAK SAPPORO and Tomatsu Building, described later in the section "(c) Acquisition of Asset (including scheduled acquisition)".

Short-term loan

	Loan	Interest rate		Drawdown date	Maturity date		Collateral/
Lenders	amount			Repayment
	(million yen)							method
		Bank base rate						Unsecured
MUFG		(JBA 1-month						(*2) /
2,400	Japanese Yen TIBOR)		7 December 2022	26 September 2023		Repayment
Bank, Ltd.
	＋0.140%(*1)						in full at
		(Floating rate)						maturity
(*1)	Interest shall be paid on the end of each month, and the first interest payment date is the end of
	December 2022. (Partial) repayment of the principal is permissible on the interest payment date.
	The base interest rate applicable to the calculation period of interest payable on each interest
	payment date shall be JBA 1-month Japanese Yen TIBOR as of two business days prior to the
	previous interest payment date. JBA 1-month Japanese Yen TIBOR is shown on the website of
	General	Incorporated	Association	JBA	TIBOR	Administration
	(http://www.jbatibor.or.jp/english/rate/)
(*2)	Under some conditions, the loan may be collateralized by real estate trust beneficial interests etc.
	owned by GOR.
			3

(c)Acquisition of Asset (including scheduled acquisition)

1. GOR acquired the property on 7 December 2022, as outlined below.

Name of building	THE PEAK SAPPORO
Type of specified assets	Trust beneficial interests in real estate
Location (Indication of registered building)	3-23-1,Kita-Jujo-Nishi,Kita-ku, Sapporo City, Hokkaido
Land (*1)	Ownership		Ownership (Trust beneficial interests)
	Land area		2,549.13 sqm
Building (*1)	Ownership		Ownership (Trust beneficial interests)
	Use		Office and retail
	Floor area		12,823.15 sqm
	Year built		June 2021
	Structure		9-story plus 1 basement level S with flat roof
Contract date	24 October 2022
Acquisition price (*2)	17,000 million yen
Acquisition date	7 December 2022
Seller	Fuyo General Lease Co., Ltd.

(*1) "Land area", "use", "floor area", "year built", and "structure" are shown based on the registration, unless otherwise stated.

(*2) The acquisition price represents the prices described in the purchase agreement, excluding related expenses, settlement amount of property tax and city planning tax, consumption tax and local consumption tax.

1. GOR decided the acquisition of the asset on 17 November 2022 as follows.

Name of building	Tomatsu Building
Type of specified assets	Trust beneficial interests in real estate
Location (Residence indication)	1-17-1, Nishiki, Naka-ku,Nagoya-City, Aichi
Land (*1)	Ownership	Ownership (Trust beneficial interests)
	Land area	2,550.37 sqm
Building (*1)	Ownership	Ownership (Trust beneficial interests)
	Use	Office and Parking
	Floor area	23,161.27 sqm
	Year built	March 1995
	Structure	12-story plus 2 basement levels S, with a flat
		roof
Contract date	17 November 2022
Scheduled acquisition price (*2)	17,300 million yen
Scheduled acquisition date	28 April 2023
Seller	Fuyo General Lease Co., Ltd.

(*1) "Land area,""use,""floor area,""year built," and "structure" are shown based on the registration, unless otherwise stated. Floor area shows the total floor area of the primary building and annexes.

(*2) The scheduled acquisition price represents the prices described in the purchase agreement, excluding related expenses, settlement amount of property tax and city planning tax, consumption tax and local consumption tax.

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