Invesco Office J REIT : SUMMARY OF FINANCIAL RESULTS (REIT) For the Fiscal Period Ended April 30, 2021

For Translation Purposes Only

SUMMARY OF FINANCIAL RESULTS (REIT) For the Fiscal Period Ended April 30, 2021

					June 15, 2021
Name of REIT Issuer:	Invesco Office J-REIT, Inc.	Stock exchange listing: TSE
Securities code:	3298		URL	http://www.invesco-reit.co.jp/
Representative:	(Title)	Executive Director		(Name)	Ryukichi Nakata
Name of asset manager:	Invesco Global Real Estate Asia Pacific, Inc.
Representative:	(Title)	Representative in Japan		(Name)	Yasuyuki Tsuji
Contact:	(Title)	Head of Portfolio Management Department	(Name)	Hiroto Kai
	TEL	[phone]

Scheduled date to file securities report:	July 30, 2021	Scheduled date to commence distribution payments:	July 21, 2021
Supplementary materials for financial results:	Yes
Holding of financial results briefing session:	No

(Values are rounded down to the nearest million yen)

1. Financial results for the fiscal period ended April 30, 2021 (November 1, 2020 to April 30, 2021)

(1) Operating results						(Percentages indicate change from the previous period)
Period ended		Operating revenues	Operating income		Ordinary income		Net income
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
April 30, 2021		8,755	(1.2)	4,185		1.4	3,700		1.5	3,698		1.5
October 31, 2020		8,865	2.4	4,127		0.1	3,646		0.3	3,645		0.3
				Return on		Ratio of ordinary		Ratio of ordinary
		Net income per unit	unitholders'			income to operating
			income to total assets
				equity		revenues
Period ended
		Yen			%			%			%
April 30, 2021			416			3.3			1.5			42.3
October 31, 2020			409			3.2			1.4			41.1

(Note 1) Net income per unit for the period is calculated by dividing the net income by the day-weighted average number of investment units.

(Note 2) Return on unitholders' equity was calculated using the following formula and rounded to one decimal place.

Return on unitholders' equity = Net income / [(total net assets at the beginning of the period + total net assets at the end of the period)/ 2] × 100. (Note 3) The ratio of ordinary income to total assets was calculated using the following formula and rounded to one decimal place.

The ratio of ordinary income to total assets = Ordinary income / [(total assets in the beginning of the period + total assets in the end of the period)/ 2] × 100.

(Note 4) Percentages for operating revenues, operating income, ordinary income and net income indicate period-on-period changes.

(2) Distributions

	Distributions	Total			Distributions	Total
	per unit	distributions	Distributions	Total	per unit	distributions		Ratio of
	(excluding	(excluding	in excess of	distributions	(including	(including
	Payout ratio	distributions
	distributions	distributions	earnings per	in excess of	distributions	distributions
		to net assets
	in excess of	in excess of	unit	earnings	in excess of	in excess of
	earnings)	earnings)			earnings)	earnings)
Period ended	Yen	Millions of yen	Yen	Millions of yen	Yen	Millions of yen	%	%
April 30, 2021	420	3,697	-	-	420	3,697	100.0	3.3
October 31, 2020	410	3,648	-	-	410	3,648	100.2	3.2

(Note 1) The ratio of distributions to net assets was calculated using the following formula and rounded to one decimal place.

Distributions per unit (excluding distributions in excess of earnings) / [(Net assets per unit at the beginning of period + Net assets per unit at the end of period) / 2] × 100.

(Note 2) Due to the acquisition and retirement of own investment units during the Fiscal Period ended April 30, 2021, the payout ratio was calculated using the following formula and rounded to one decimal place.

Payout ratio = Total distributions (excluding distributions in excess of earnings) ÷ Net income × 100.

(3) Financial position

	Total assets	Net assets	Ratio of unitholders'	Net asset per unit
Period ended			equity to total assets
Millions of yen	Millions of yen	%	Yen
April 30, 2021	252,078	112,805	44.8	12,814
October 31, 2020	255,926	114,148	44.6	12,826

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(4) Cash flows
	Cash flows from	Cash flows from	Cash flows from	Cash and cash equivalents
	operating activities	investing activities	financing activities	at the end of the fiscal
Period ended				period
Millions of yen	Millions of yen	Millions of yen	Millions of yen
April 30, 2021	8,267	(649)	(7,327)	10,622
October 31, 2020	5,129	(312)	(3,818)	10,332

2. Earnings forecast for the fiscal period ending October 31, 2021 (May 1, 2021 to October 31, 2021) and April 30, 2022 (November 1, 2021 to April 30, 2022)

									(Percentages indicate change from the previous period)
											Distributions
											per unit	Distributions
	Operating revenues	Operating income	Ordinary income	Net income	(excluding	in excess of
	distributions in	earnings per
											excess of	unit
											earnings)
Period ending	Millions	%	Millions	%	Millions		%	Millions		%	Yen	Yen
of yen	of yen	of yen		of yen
October 31, 2021	8,767	0.1	3,711	(11.3)	3,236		(12.5)	3,236		(12.5)	367	-
April 30, 2022	8,479	(3.3)	3,823	3.0	3,348		3.5	3,348		3.5	381	-
(Reference) Forecasted net income per unit = Forecasted net income / Number of total investment units forecasted for the end of the period
Forecasted net income per unit for the fiscal period ending October 31, 2021 : 367 yen
Forecasted net income per unit for the fiscal period ending April 30, 2022	: 380 yen

The number of total investment units forecasted for the end of the period is assumed to be 8,802,650 units which are issued and outstanding as of today, and it is estimated that there will be no additional issue or acquisition and retirement of investment units until April 30, 2022.

* Other
(1) Changes in accounting policies, accounting estimates or restatements
(a) Changes in accounting policies due to revisions to accounting standards and/or other regulations:	None
(b) Changes in accounting policies due to other reasons:	None
(c) Changes in accounting estimates:	None
(d) Restatements:	None

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

As of	8,802,650 units	As of	8,899,256 units
April 30, 2021	October 31, 2020
As of	Nil units	As of	Nil units
April 30, 2021	October 31, 2020

(Note) Please refer to "Notes to Per Unit Information" on page 31 for the number of investment units used as the basis for calculating net income per unit.

• Summary of financial results is not inside the scope of audit procedure by certified public accountants or audit corporations.
• Other matters of special consideration
  The forward-looking statements in this material are based on information currently available to us and certain assumptions that we believe to be reasonable. Actual operating performance may differ substantially from the forward-looking statements due to various factors. Furthermore, the forward-looking statements shall not be deemed as a guarantee or a commitment of the amount of future distributions. Please refer to "Assumptions for the forecast of investment management performance for the fiscal period ending October 31, 2021 (from May 1, 2021 to October 31, 2021) and April 30, 2022 (from November 1, 2021 to April 30, 2022)" on page 12 to page 13 for assumptions relating to the forward-looking statements.

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Invesco Office J-REIT, Inc. (3298)

Summary of Financial Results for FP14 (April 30, 2021)

Table of contents
I. Operating conditions ……………………………………………………………………………………………	4
A. Operating results ……………………………………………………………………………………………	4
1. Summary of operating results for the fiscal period under review …………………………………………	4
a) Historical background of the Investment Corporation	………………………………………………	4
b) Investment environment and business performance	…………………………………………………	4
c) Overview of financing activities ………………………………………………………………………	5
d) Overview of financial results and cash distribution	…………………………………………………	6
2. Outlook for the next fiscal period …………………………………………………………………………	6
a) Future management policy and other issues …………………………………………………………	6
b) Significant events after the balance sheet date	………………………………………………………	8
c) Investment management performance outlook	……………………………………………………… 11

B. Investment risks …………………………………………………………………………………………… 13

1. Financial statements ………………………………………………………………………………………… 14

1. Balance sheets ……………………………………………………………………………………………… 14
2. Statements of income ……………………………………………………………………………………… 16
3. Statements of changes in net assets ………………………………………………………………………… 17
4. Statements of cash distributions …………………………………………………………………………… 19
5. Statements of cash flows …………………………………………………………………………………… 20

F. Notes on assumption of going concern …………………………………………………………………… 21

G. Notes on significant accounting policies …………………………………………………………………… 21

H. Notes to financial statements ……………………………………………………………………………… 22

I. Changes in numbers of issued and outstanding investment units …………………………………………… 32

1. Reference information ……………………………………………………………………………………… 33

1. Status of investment ………………………………………………………………………………………… 33
2. Investment assets …………………………………………………………………………………………… 33
3. 1. Major investment in securities …………………………………………………………………………… 33
   2. Investment properties …………………………………………………………………………………… 33
   3. Other major investment assets …………………………………………………………………………… 34

a) Price and investment percentage ……………………………………………………………………… 34

b) Overview of buildings and leases …………………………………………………………………… 36

1. Summary of trust beneficiary interests in real estate ………………………………………………… 38
2. Summary of real estate appraisal report ……………………………………………………………… 39
3. Overview of engineering reports ……………………………………………………………………… 40
4. Summary of earthquake risk analysis ………………………………………………………………… 41
5. Major real estate properties …………………………………………………………………………… 41
6. Leasing to major tenants ……………………………………………………………………………… 41
7. Information concerning top 10 tenants based on leased area ………………………………………… 42
8. Capital expenditure …………………………………………………………………………………… 43
9. 1. Future for capital expenditure …………………………………………………………………… 43
   2. Capital expenditure incurred …………………………………………………………………… 44
10. Reserved amount for long-term repairs plan ………………………………………………………… 45
11. Income and expenditure of individual entrusted real estate …………………………………………… 46
12. Security ……………………………………………………………………………………………… 50

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Invesco Office J-REIT, Inc. (3298)

Summary of Financial Results for FP14 (April 30, 2021)

I. Operating conditions

A. Operating results

1. Summary of operating results for the fiscal period under review

1. Historical background of the Investment Corporation

The Investment Corporation was established on February 27, 2014 by Invesco Global Real Estate Asia Pacific, Inc. as the organizer under the Act on Investment Trusts and Investment Corporations of Japan (hereinafter referred to as the "Investment Trust Act"). The Investment Corporation was listed on the Real Estate Investment Trust Securities Market of the Tokyo Stock Exchange (Securities code: 3298) on June 5, 2014.

The Investment Corporation is managed by Invesco Global Real Estate Asia Pacific, Inc. (hereinafter referred to as the "Asset Management Company"). The Asset Management Company belongs to the Invesco Group, one of the world's leading independent asset management companies. The Investment Corporation aims to provide investors with opportunities to invest in office buildings in Japan with a strong focus on large-scale office buildings (Note 1) located in Japan's major metropolitan areas (Note 2). These assets are selected by experienced investment management specialists belonging to the Asset Management Company with the view to maximize investor value.

(Note 1) "Large-scale office buildings" refers to real estate related assets (real estate related assets which are defined in Article 28, Paragraph 1 of the Investment Corporation's Articles of Incorporation (hereinafter referred to as the "Articles of Incorporation")) are buildings or mortgage-backed securities for which the underlying assets are buildings which have scale that meets the following standards and therefore regarded as "large-scale" and are used primarily as office space.

Tokyo Metropolitan Area: Total floor area of 10,000 m2 or greater with a standard exclusive floor area on one floor covering at least 600 m2.

Other regions: Total floor area of 7,000 m2 or greater with a standard exclusive floor area on one floor covering

at least 400 m2.

(Note 2) The Investment Corporation defines "major metropolitan areas" as the Tokyo Metropolitan Area (Tokyo, Yokohama-shi,Kawasaki-shi,Saitama-shi, and Chiba-shi),Osaka-shi,Nagoya-shi and Fukuoka-shi; and sets this as its focused investment target area.

b) Investment environment and business performance

During the fiscal period under review, as the future perspective of COVID-19 pandemic remains uncertain and the declaration of state of emergency for twice, the corporate investment and personal consumption which were recovering in the end of last year turned to minus again and remained harsh.

With regards to the domestic leasing market for the office sector, the corporate activities were restricted and the decision making of corporations for future activity policy has been delayed. As a result, the total volume of cancellation of office spaces or reduction of leased office floor area surpassed the volume of tenants moving in the new spaces or expansion of tenants' existing space. The vacancy rate continued to increase and the rent level was slightly adjusted to downward.

In real estate transaction market, there were some investors who had concerns over the rental market and acted carefully. However, the investment demand pursuing yields mainly derived from overseas monetary easing policy has continued to be aggressive, centering on the sector which has high tolerance of the economy fluctuation, and the transaction price remained at high level.

Under such circumstances, the Investment Corporation disposed IBF Planning Building through consideration of the following factors; (1) IBF Planning Building is a middle-sized office building with quasi-single tenant (gross floor area of 2,190.49sqm and leased to two tenants as of October 31, 2020), which does not fall into the main investment target of the Investment Corporation; (2) the major tenant of IBF Planning Building was planning to leave in October 2021 and through the disposition, the Investment Corporation aims to mitigate the risk of income loss in the future; (3) by allocating part of the proceeds from the disposition to repay the borrowings, the interest payable was expected to be reduced. Taking the above factors into consideration and examining the risks of continuing to hold or dispose, the Asset Management Company determined that the disposition contributes to the improvement of the quality of the Investment Corporation's portfolio, strengthens the Investment Corporation's financial base, and enhances the unitholders' value.

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50,000 million yen

From March 8, 2021 to March 7, 2023

Acquisition of specific assets (as defined under Article 2, Paragraph 1 of the Investment Trust Act), debt repayment, redemption of investment corporation bonds (including short-terminvestment corporation bonds), refund of tenant security deposit, payment of repairs and maintenance expenses, working capital, etc.

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Invesco Office J-REIT, Inc. (3298)

Summary of Financial Results for FP14 (April 30, 2021)

The fiscal period under review ended with the ownership of real estate trust beneficiary interests relating to the nineteen (18) properties (total acquisition price: 225,871 million yen) that have a total leasable area of 296,647.98 sqm.

Regarding property management, the occupancy rate of the entire portfolio was 97.0% as at the end of the fiscal period under review through the steady leasing of vacant space in the assets of the Investment Corporation. Along with improvement in occupancy rates, the Investment Corporation aimed to improve the earnings of the entire portfolio by seeking to identify opportunities to increase rent, where appropriate, on lease renewals.

c) Overview of financing activities

The fundamental policy of the Investment Corporation is to conduct stable and sound financial management to secure stable income over the medium to long term together with steady growth in asset value. Financing activities in the fiscal period under review were as follows.

The Investment Corporation borrowed 8,100 million yen on November 30, 2020 to repay the existing short-term loan of 500 million yen and the existing long-term loan of 7,600 million yen which came due on November 30, 2020. The Investment Corporation also borrowed 6,300 million yen on April 30, 2021 to repay the existing long-term loan of 6,300 million yen which came due on April 30, 2021.

In addition, the Investment Corporation prepaid 2,120 million yen on January 29, 2021, which is part of the existing long-term loan of 6,980 million yen becoming due on May 31, 2021, by using the part of the proceeds from the disposition of "IBF Planning Building" as described in "b) Investment environment and business performance".

As a result, the outstanding amount of interest-bearing debt as at the end of the fiscal period under review totaled 124,160 million yen; 106,760 million yen for long-term borrowings (including borrowings which will be repaid within one (1) year for 30,910 million yen) and 17,400 million yen for investment corporation bonds (including investment corporation bonds which will be repaid within one

1. year for 1,800 million yen). The ratio of total interest-bearing debt (the total amount of borrowings, investment corporation bonds and short-term investment corporation bonds) to total assets (i.e., the loan-to-value or "LTV") was at 49.3% at the end of the fiscal period under review.

(Credit rating)

As at the date of this document, credit ratings of the Investment Corporation are as follows.

Rating agency	Rating	Rating outlook
Japan Credit Rating Agency,	Long-term Issuer Rating: AA−	Stable
Ltd. (JCR)	Bonds: AA− (Note)	-

(Note) Mentioned herein is the rating for the 1st series Unsecured Investment Corporation Bonds, the 2nd series Unsecured Investment Corporation Bonds, the 3rd series Unsecured Investment Corporation Bonds, the 4th series Unsecured Investment Corporation Bonds, the 5th series Unsecured Investment Corporation Bonds and the 6th series Unsecured Investment Corporation Bonds.

(Shelf registration statement regarding investment corporation bonds)

The Investment Corporation filed a shelf registration statement regarding investment corporation bonds (excluding short-term investment corporation bonds) on February 26, 2021. The details of the statement are as follows.

Amount to be issued

Planned period of issuance

Use of proceeds