Global One Real Estate Investment : Supplementary Material on Earnings Forecasts

(Securities Code: 8958)

17 November 2022 (Thursday)

Supplementary Material on Earnings Forecasts

"GOR Revises Earnings Forecasts for the Six-Month Period Ending March 2023 and Announces Earnings Forecasts for the Six-Month Period Ending September 2023"

REIT Issuer

4-1 Kojimachi, Chiyoda-ku, Tokyo

Global One Real Estate Investment Corporation

Representative: Akio Uchida, Executive Director

Asset Manager

Global Alliance Realty Co., Ltd.

Representative: Kazunori Yamauchi, President

Contact: Gen Yamazaki, General Manager

Tel: [phone]

Tomatsu Building

Steady Growth of DPU

Realize Significant Upward Revision of DPU Forecast through the Initiative (*1)

Revised Forecast for the 39th Period (End Mar. '23) and Forecast for the 40th Period (End Sep. '23) as well as the Assumption after the Initiative (*2)

(Yen/unit)	：Reversal of reserve for reduction entry per unit	：Reserve for reduction entry per unit

3,500
					-336
3,000		+19.2%	+29.1%		3,038
			-66
				2,860
2,500	2,400				2,400
	+50
		-133	2,216
2,000
	2,349	• Increase in utility charges	-68 yen
	• Increase in repairs and	-56 yen
1,500		maintenance
	• Others	-49 yen
0

Before the announcement of	Property-related profits and	Assumption in case the	After the announcement of	After the announcement of	Assumption of DPU after the
the Initiative	losses	Initiative was not	the Initiative		the Initiative		Initiative
(announced on 19 May 2022)	from the existing portfolio	implemented	（announced on 17		（announced on 17	(*3)(*4)
			November 2022)		November 2022)
The 39th Period (End Mar. '23) Forecast			The 40th Period		Assumption	2
(End Sep. '23) Forecast	after the Initiative

Expected Increase in Reserve for Reduction Entry

Realize Stable DPU Management through Additional Internal Reserve

Situation of the Reserve for Reduction Entry that can be Reversed in a Discretionary Manner

In order to stabilize distribution, GOR intends to secure a part of the gain on sale of the transfer of Otemachi up to 10% of net income for the four periods from the Period ending March 2023 to the Period ending September 2024 as internal reserve for reduction entry that can be reversed in a discretionary manner by applying special provisions for taxation in cases of replacement of assets held over a long term.

Balance of reserve (*1) Reserve for reduction entry per unit(*2)

(million yen)

303 yen

574 yen

574 yen

574 yen

574 yen

581 yen

546 yen

498 yen

564 yen

Expected to increase due to the

internal reserve

2,000

1,500

1,000

500
552	552	552	552	552	519	509	577
291
0

32nd

33rd

34th

35th

36th

37th

38th

39th

40th

41st

42nd

43rd

Period end

Period end

Period end

Period end

Period end

Period end

Period end

Period end

Period end

Period end

Period end

Period end

(End Sep. '19) (End Mar. '20) (End Sep. '20) (End Mar. '21) (End Sep. '21) (End Mar. '22) (End Sep. '22) (End Mar. '23) (End Sep. '23) (End Mar. '24) (End Sep. '24) (End Mar. '25)

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(forecast)

(forecast)

Note

Regarding the figures in this document, the amounts are rounded down to the units indicated and the ratios are rounded to the units indicated unless otherwise noted. Therefore, the sums of each item may not match.

Page 2 (*1)

(*2)

(*3)

(*4)

Page 3 (*1)

(*2)

The "Initiative" refers collectively to the new investment unit issuance and secondary offering announced on the date of this document (hereinafter, the "Offering"), the acquisition of THE PEAK SAPPORO scheduled on 7 December 2022, the acquisition of Tomatsu Building scheduled on 28 April 2023 (Hereinafter, THE PEAK SAPPORO and Tomatsu Building are individually or collectively referred to as the "Asset to be Acquired". The same applies hereinafter.), and the transfer of Otemachi First Square scheduled to be transferred over five periods after 6 December 2022 (hereinafter, the "Asset to be Transferred").

In "After the announcement of the Initiative" on this page, the forecast for the 39th Period (End Mar. '23) is calculated based on the assumption that the Offering, transfer of Otemachi First Square (25% ownership interest) on 6 December 2022 and acquisition of THE PEAK SAPPORO on 7 December 2022 will be completed, and the forecast for the 40th Period (End Sep. '23) is calculated based on the assumption that the Offering, asset acquisition and transfer in the 39th Period (End Mar. '23) as well as the acquisition of Tomatsu Building on 28 April 2023 and transfer of Otemachi First Square (30% ownership interest) on 25 September 2023 will be completed and that there will be no change to the owned assets and financial conditions other than the Initiative and fund procurement related to it. For other detailed assumptions, please refer to "GOR Revises Earnings Forecast for the Six-Month Period Ending March 2023 and Announces Earnings Forecast for the Six-Month Period Ending September 2023" announced today.

The assumed value of dividend per unit after the Initiative is not calculated for the purpose of estimating profits, etc. during a certain accounting period and does not contain the meaning as forecast for profits, etc. during a certain accounting period. In addition, the assumed value of dividend per unit after the Initiative is not an indicator defined by the corporate accounting standards generally accepted as fair and appropriate and has not been audited by accounting auditors. Such assumed value shall not be taken into consideration as an alternative for other indicators displayed in accordance with the corporate accounting standards generally accepted as fair and appropriate. Furthermore, the assumed value of dividend per unit after the Initiative does not indicate the future revenue of GOR nor guarantee the execution or non-execution of future distribution and its amount in any sense. Please note that the actual profits, etc. during a certain period may differ significantly from the above.

The assumed value of dividend per unit after the Initiative is calculated with the following formula: "(projected net income ("Financial Results for the Six-Month Period Ended March 2022 (the 37th Period)" dated 19 May 2022) for the 39th Period (End Mar. '23) in case the Initiative was not implemented ± the amount of change in property-related profits and losses (including depreciation and amortization expenses) after completion of the sale and purchase of the Asset to be Acquired and the Asset to be Transferred through the Initiative ± amount of change in asset management fee and non-operating expenses through the Initiative) ÷ (1,022,826 units which is the maximum number of investment units issued and

outstanding after the completion of the Offering). For the calculation of "the property-related profits and losses (including depreciation and amortization expenses) after completion of the sale and purchase of the Asset to be Acquired and Asset to be Transferred through the Initiative", property-related profits and losses for six months estimated by GAR based on the information provided by the previous owner is taken into account in the property-related profits and losses for the Asset to be Acquired.

The reserve for the reduction entry before the 38th Period (End Sep. '22) is the end balance of the reserve for the reduction entry on the balance sheet of each Period. An increase or decrease in the end balance of the reserve for the reduction entry due to provision of the reserve for the reduction entry or reversal of the reserve for the reduction entry will not necessarily occur in the Periods after the 39th Period Period (End Mar. '23).

The reserve for the reduction entry per investment unit for each Period is the balance of the reserve for the reduction entry as of the end of each Period divided by the number of investment units issued as of the end of each Period. It is divided by 1,022,826 unit which is the maximum number of investment units issued and outstanding after the completion of the Offering after the 39th Period (End Mar. '23).

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• This document is a summary of contents disclosed in "GOR Revises Earnings Forecasts for the Six-Month Period Ending March 2023 and Announces Earnings Forecasts for the Six-Month Period Ending September 2023" dated today and other related information.
• This document is intended solely to provide information and not to be a solicitation of any particular investment transactions or an offer to buy any particular securities including investment units. Please contact your securities companies when purchasing investment units.
• The information contained in this document does not constitute disclosure documents or performance reports required under the Financial Instruments and Exchange Law, the Law Concerning Investment Trusts and Investment Corporations of Japan, the Tokyo Stock Exchange's Securities Listing Regulations or other related Ordinances or Rules.
• This document contains certain forward-looking statements. Such statements are based on certain assumptions or beliefs in light of the information available at this moment. Therefore, such statements involve risks and uncertainties and may be affected by such risks, uncertainties, assumptions and other factors. GOR does not guarantee the accuracy of such forward-looking statements which include those in connection with its operations, business performance and financial standing. Actual results may materially differ from those expressed or implied in any forward-looking statements due to various factors, risks and uncertainties.
• While GOR makes every effort to ensure that there is no error or omission in the information provided in this document, GOR does not guarantee the accuracy, certainty, appropriateness, or the fairness of such information. Please note that the contents of this document may be changed or amended, or the publication of this document may be suspended or closed without prior notice information.
• Reproduction or diversion of the contents included in this document without prior authorization is strictly prohibited

Contact: Global Alliance Realty Co., Ltd.

REIT Finance Dept. Tel: [phone]

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