Global One Real Estate Investment : Summary of Financial Results for the Six-Month Period Ended September 2021

Global One Real Estate Investment Corp.

Summary of Financial Results for the Six-Month Period Ended September 2021

16 Nov 2021

REIT Issuer:	Global One Real Estate Investment Corp.
Stock Exchange Listing:	Tokyo Stock Exchange
Securities code:	8958
Website:	https://www.go-reit.co.jp/en/
Representative:	Akio Uchida, Executive Director
Asset Manager:	Global Alliance Realty Co., Ltd.
Representative:	Kenji Kojo, President
Contact:	Gen Yamazaki, General Manager
	REIT Finance Department
	Tel: [phone]
Scheduled date for filing of securities report:	24 December 2021
Scheduled date for dividends payments:	15 December 2021
Explanatory material to be prepared:	Yes
Analyst meeting to be convened:	Yes

• Amounts of less than one million yen are rounded down.

1. Financial summary for the six-month period ended September 2021 (1 April 2021 - 30 September 2021)

1. Earning Position

			(Percentages indicate rate of change from previous six-month period)
	Operating revenue	Operating profit	Ordinary profit		Net income
	Million yen	%	Million yen	%	Million yen	%	Million yen	%
Six-month period	5,759	1.2	2,740	0.1	2,353	0.1	2,352	0.1
ended Sept 2021
Six-month period	5,688	-0.8	2,737	-0.3	2,352	0.1	2,351	0.1
ended March 2021
	Net income	Ratio of net income	Ordinary profit		Ordinary profit
	per unit		to net assets		to total assets		to operating revenue
		Yen		%		%		%
Six-month period		2,446		2.4		1.2		40.9
ended Sept 2021
Six-month period		2,444		2.4		1.2		41.4
ended March 2021

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1. Dividend distributions

	Dividend per unit	Total dividends	Dividend in excess of	Total dividends in
	(excluding dividends	(excluding dividends
	profit per unit	excess of profit
	in excess of profit)	in excess of profit)
	Yen	Million yen	Yen	Million yen
Six-month period	2,446	2,352	－	－
ended Sept 2021
Six-month period	2,445	2,351	－	－
ended March 2021
	Payout ratio	Dividend ratio
	(*)	to net assets
	%	%
Six-month period	100.0	2.4
ended Sept 2021
Six-month period	100.0	2.4
ended March 2021

1. 1. Payout ratio is calculated using the following formula:
      Payout ratio = Total dividends (excluding dividends in excess of profit) / Net income × 100
2. Financial position

	Total assets	Net assets	Net assets	Net assets per unit
	to total assets
	Million yen	Million yen	%	Yen
Six-month period	200,776	96,806	48.2	100,642
ended Sept 2021
Six-month period	200,600	96,805	48.3	100,641
ended March 2021

(4) Cash flows

	CF from	CF from	CF from	Cash and cash
	equivalents at the end
	operating activities	investing activities	financing activities
	of period
	Million yen	Million yen	Million yen	Million yen
Six-month period	3,349	-442	-2,369	10,292
ended Sept 2021
Six-month period	3,120	-602	-2,349	9,755
ended March 2021

2. Earnings forecasts for the six-month period ending March 2022 (1 October 2021 - 31 March 2022) and earnings forecasts for the six-month period ending September 2022 (1 April 2022 - 30 September 2022)

				(Percentages indicate rate of change from previous six-month period)
		Operating revenue	Operating profit	Ordinary profit	Net income
		Million yen	%	Million yen	%	Million yen	%	Million yen	%
	Six-month period	5,635	-2.2	2,680	-2.2	2,291	-2.7	2,290	-2.6
	ending March 2022
	Six-month period	5,664	0.5	2,707	1.0	2,319	1.2	2,318	1.2
	ending Sept 2022
			Dividend per unit		Dividend in excess of profit per unit
		(excluding dividends in excess of profit）
					Yen				Yen
	Six-month period				(*) 2,400				－
	ending March 2022
	Six-month period				2,410				－
	ending Sept 2022
	(Reference)					Six-month period	Six-month period
						ending March 2022	ending Sept 2022
	Projected net income per unit				2,381 yen	2,410yen

The projected number of investment units as of the end of the period is 961,884 units that have been issued and outstanding as of 16 November 2021, with the assumption that there will be no additional issuance of investment units or acquisition and retirement of own investment units through the end of the six-month period ending September 2022. For the earnings forecasts for the six-month period ending March 2022 (1 October 2021 - 31 March 2022) and the six-month period ending September 2022 (1 April 2022 - 30 September 2022) when taking into account the acquisition and retirement of own investment units, please refer to (Reference Information) in D. Earnings forecasts on page 10

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1. Dividend per unit is calculated on the premise that the distribution will be made by applying net income plus 18 million yen of the reserve for reduction entry.

*Others

1. Changes in accounting policies, changes in accounting estimates and restatements of revisions

(a) Changes in accounting policies due to amended Accounting Standards	Yes
(b) Changes in accounting policies due to other factors	None
(c) Changes in accounting estimates	None
(d) Restatements of revisions	None

1. Number of units issued and outstanding
2. 1. Number of units issued and outstanding at the end of the period (including own units):

For the six-month period ended September 2021	961,884
For the six-month period ended March 2021	961,884
(b) Number of own units at the end of the period:
For the six-month period ended September 2021	0
For the six-month period ended March 2021	0

*This Summary of Financial Results is not subject to audit procedures by a certified public accountant or an audit firm.

* Special notes (Forward-looking Statements)

Forward-looking statements in this presentation (i.e., earnings forecasts) are based on information currently available and certain assumptions GOR believes reasonable. Actual results may differ materially from the forward-looking statements in this presentation due to various factors. The forecasts contained in this document are "current" as of the date of this release, based on the assumptions on page 12 ("Assumptions underlying earnings forecasts for the six-month period ending March 2022 (the 37th Period) and the six-month period ending September 2022 (the 38th Period)"). Actual results (i.e., operating revenue, operating profit, ordinary profit, net income, dividend per unit) may differ depending on various factors. The forecasts do not guarantee the amounts of future dividends.

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1. Operation results

1. Operation results
   I. Overview of the six-month period ended September 2021 (the "36th Period")
2. 
   A. Historical background

   
   16 April 2003: Global One Real Estate Investment Corp. ("GOR") was established by Global Alliance Realty Co., Ltd. ("GAR") as a J-REIT under the Act on Investment Trusts and Investment Corporations of Japan (the "Investment Trusts Act"). The total investment amount was 200 million yen, or 400 units, at the time of incorporation.
   28 May 2003: Corporate registration was completed with the Kanto Local Finance Bureau (Registration No. 20, granted by the Director-General of the Kanto Local Finance Bureau).
   25 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.

GOR has completed its accounting closing for the 36th Period.

B. Investment environment and operation results

In the 36th Period, while the Japanese economy remained in a severe state due to the impact of COVID-19, movements of recovery continued to be seen, however, the pace of such movements became slower.

In the office building rental market, the conclusion of contracts for the purpose of relocation for expansion, etc. was seen in some areas, but since cancellations were made due to base integration, etc., the upward trend of vacancy rates continued and asking rents turned to a slight downward trend.

In the office building transaction market, management remains difficult under ultra-low interest rates due to ample financing by the central banks of various countries. While the investment appetite of domestic as well as foreign investors remains robust against the backdrop of a favourable funding environment, information on Class A office buildings for sale is still limited. Given this situation, competition over property acquisitions is severe and transaction prices remain high.

Going forward, GOR will pay utmost attention to rental market conditions, the trend of the real estate transaction market, and changes in the financial environment.

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(a) Acquisitions and sales in portfolio

The 1st Period (initial accounting period ended March 2004)

On 26 September 2003:	Acquired Sphere Tower Tennoz, Kintetsu Omori Building, and
	Kintetsu Shin-Nagoya Building with a total acquisition price of
	39,753 million yen.
On 25 December 2003:	Acquired Otemachi First Square (sectional ownership,
	approximately 9.1% of the dedicated area, with an acquisition price
	of 23,495 million yen).
The 3rd Period (six-month period ended March 2005)
On 1 October 2004:	Sold Kintetsu Omori Building.
On 29 March 2005:	Acquired Ginza First Building (sectional ownership, approximately
	92.1% of the dedicated area, with an acquisition price of 12,282
	million yen).
The 5th Period (six-month period ended March 2006)
On 21 October 2005:	Acquired Rakuten Crimson House Aoyama, with an acquisition
	price of 35,000 million yen.
The 8th Period (six-month period ended September 2007)
On 25 April 2007:	Acquired Meiji Yasuda Life Insurance Saitama-Shintoshin Building
	(50% of co-ownership interest with an acquisition price of 22,700
	million yen).
The 9th Period (six-month period ended March 2008)
On 2 October 2007:	Sold part of interest in Sphere Tower Tennoz (trust beneficial interest
	in real estate (33% quasi co-ownership)).
On 31 January 2008:	Acquired Yodoyabashi Flex Tower with an acquisition price of 7,834
	million yen.
The 15th Period (six-month period ended March 2011)
On 1 March 2011:	Acquired Hirakawacho Mori Tower (sectional ownership,
	approximately 26.2% of ownership interest, with an acquisition
	price of 18,200 million yen).
The 19th Period (six-month period ended March 2013)
On 20 November 2012:	Acquired ARK Hills Sengokuyama Mori Tower (sectional ownership,
	approximately 5.6% of ownership interest, with an acquisition price
	of 8,423 million yen).
The 21st Period (six-month period ended March 2014)
On 20 December 2013:	Sold all the remaining interest in Sphere Tower Tennoz.
On 27 March 2014:	Sold part of interest (67% co-ownership interest) in Kintetsu Shin-
	Nagoya Building.
On 28 March 2014:	Acquired Arca Central (sectional ownership, approximately 56.1% of
	ownership interest, with an acquisition price of 15,031 million yen).
The 22nd Period (six-month period ended September 2014)
On 30 May 2014:	Acquired additional ownership interest in Arca Central (sectional
	ownership, approximately 1.7% of ownership interest, with an
	acquisition price of 360 million yen).
On 1 August 2014:	Acquired Yokohama Plaza Building (ownership with an acquisition
	price of 17,950 million yen).
The 23rd Period (six-month period ended March 2015)
On 9 October 2014:	Sold all the remaining interest in the Kintetsu Shin-Nagoya Building.

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