Mori Hills REIT Investment Corporation

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Commercial REITs

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Mori Hills REIT Investment : Results of the 29th Fiscal Period ended January 31, 2021 Presentation Material

March 18, 2021 at 02:04 am EDT

Mori Hills REIT Investment Corporation

Results of the 29th Fiscal Period ended January 31, 2021 Presentation Material

March 18, 2021

TSE Code： 3234https://www.mori-hills-reit.co.jp/en/

(Asset Manager) Mori Building Investment Management Co., Ltd.

https://www.morifund.co.jp/en/

Disclaimer

This document has been prepared by Mori Hills REIT Investment Corporation ("MHR") for informational purposes only and should not be construed as an offer of any transactions or the solicitation of an offer of any transactions. MHR is a publicly-offered real estate investment corporation (J-REIT) investing in real estate and related assets the prices of which may fluctuate. Unitholders of MHR may suffer loss when unit prices decline due to fluctuation of real estate value and profitability, aggravation of financial status of MHR and other reasons.

Please make investment decisions at your own discretion and responsibility, and contact securities company when purchasing investment units of MHR.

This document's content includes forward-looking statements about business performance; however, no guarantees are implied concerning future business performance. Although the data and opinions contained in this document are derived from what we believe are reliable and accurate sources, we do not guarantee their accuracy or completeness. The contents contained herein may change or cease to exist without prior notice. Regardless of the purpose, any reproduction and/or use of this document in any shape or form without the prior written consent from MHR is prohibited.

This document contains charts, data, etc. that were prepared by Mori Building Investment Management Co., Ltd. (hereafter, the "Asset Manager") based on charts, data, indicators, etc. released by third parties. Furthermore, this document includes statements based on analyses, judgments, and other observations concerning such matters by the asset manager as of the date of preparation.

Asset Management Company : Mori Building Investment Management Co., Ltd. (Registered as a financial instruments business, Kanto Local Finance Bureau registration no. 408

Member of The Investment Trusts Association, Japan)

Contents

1. Executive summary 3

2. Investment highlights 4

Unit price performance 5

Financial results 6

Overview of new acquisition

(Scheduled as of August 2, 2021) 7

Dividends per unit growth record 9

Strengths of continuous growth in DPU and NAV 10

Increase in appraisal NAV per unit 11

Forecasts 12

Highest quality portfolio among all J-REITs 13

External growth 22

Internal growth 25

Financial management 29

Sustainability initiatives 31

MHR's representative property 33

Operation highlights 37

Factors that led to changes in dividends per unit

from the previous fiscal period 38

Change in assets under management 39

Change in unrealized capital gain/loss 40

Appraisal value 41

Change in the rent and occupancy rates 42

Tenant status by month and major tenants 43

Financial overview (as of January 31, 2021) 44

Debt status (as of January 31, 2021) 45

Unitholders breakdown (as of January 31, 2021) 46

4. Business environment recognition &

MHR's policy/strategy 47

Business environment recognition 48

MHR's policy/strategy 49

Market-related information 51

Appendix 57

1. Executive summary

Operating revenue: 9,820 million yen, operating income: 6,173 million yen, net income: 5,575 million yen Increased revenue and income period-over-period

DPU: 2,909 yen (+0.4% from 28th period) Increasing for 21 consecutive fiscal periods

NAV per unit: 147,182 yen (+0.5% from 28th period) Increasing for 20 consecutive fiscal periods

Conducted a public offering and additionally acquired Toranomon Hills Mori Tower. Due in part to the fact that the acquisition took place at a price significantly below the appraisal value, DPU and NAV per unit continued to increase.

Additionally acquired Toranomon Hills Mori Tower for 12.2 billion yen as of September 1, 2020

While the contract for the only master lease for which fixed rent significantly deviates from the market rent will be renewed at a lower level in the 31st period, because the Toranomon Hills Mori Tower

(7.8 billion yen) will be additionally acquired at the same time, the DPU (forecast) will remain the same period-over-period.

Going forward, premium properties in central Tokyo are expected to continuously demonstrate competitive advantages even after the spread of telecommuting, as these properties can capture office demand by functioning as headquarters.

Even as office vacancy rates rise in central Tokyo, the office occupancy rate for the 29th period maintained a high level of 99.6% due in part to the excellent location and quality of MHR's properties. Rent increases have continued for both rent revision and tenant replacement.

The residential occupancy rate for the current period was 94.9%, and while this was a slight decline from the previous period, the overall portfolio impact has been minimal.

The fund procurement environment has not changed despite the COVID-19 pandemic. Maintained the target level by book value basis LTV 45.8%, appraisal value basis LTV 38.1%, remaining duration of debt 4.6 years. (After the property acquisition in the 31st period, LTV based on book value is forecast at 46.8% and LTV based on appraisal value is forecast at 38.9%)

New green bonds were issued. (November 2020: 3.5 billion yen, February 2021: 2.0 billion yen)

2. Investment highlights

2-1 Unit price performance

(yen) 200,000

190,000 180,000 170,000 160,000 150,000 140,000 130,000 120,000 110,000 100,000 90,000 80,000 70,000 60,000 50,000 40,000 30,000

15th

9th

10th

11th

12th

13th

14th

16th

17th

18th

19th

20th

21st

22nd 23rd

24th

25th

26th

27th

28th

29th

Sep. 14, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31, Jul. 31, Jan. 31,2010 2011

2011

2012

2013

2014

2015 2015

2016

2016 2017

2017 2018 2018 2019 2019 2020 2020 2021

41.9 bn yen279.4 bn yen

(Note 1) Unless otherwise stated in this document, all amounts are rounded down below the unit and all fractions and areas are rounded up below the decimal point. (Note 2) TSE REIT Index is adjusted as of the 8th period result announcement (Sep. 14, 2010) and shows the relative performance vs. MHR's unit price performance.

2-2 Financial results

The 29th period (January 2021) saw increased revenue and income compared with the 28th period and posted a DPU increase for the 21st consecutive fiscal period

A public offering was conducted, and Toranomon Hills Mori Tower (12.2 billion yen) was additionally acquired in September 2020. The acquisition took place at a price significantly below the appraisal value, and both DPU and NAV increased.

A high occupancy rate has been maintained even as vacancy rates rise for offices in central Tokyo, and rent increases have continued for both rent revision and tenant replacement.

28th period Jul. 31, 2020

29th period Jan. 31, 2021

Increase/decrease factor (28th - 29th)

Actual

ActualDifferenceForecasted

・Operating revenue (+218 mn yen)

Operating Highlights (million yen)

- Property acquisition in 29th period +219

Operating revenue

Rent revenues

Other operating revenues Operating expenses

Expenses related to properties

SG&A

Operating income

9,602 9,389 213 3,573 3,251 321 6,028

Non-operating income 1

Non-operating expenses 595

Ordinary income 5,434

Net income 5,433

Total dividends

5,433

- Office rent (pass-through) +9

- Utilities and other revenue +4

- Residential Rent (pass-through) △8

- Cancellation penalty △8

・Operating expenses (+73 mn yen)

- Property acquisition in 29th period +50

- Property management fee +24

- Property taxes +16

- Asset management fee +4

- Maintenance and repairs △13

- Depreciation △9

・Non-operating expenses (+3 mn yen)

- Interest expenses, etc.
(new borrowings in 29th period) +11
- Amortization of investment unit issuance cost +5
- Interest expenses, etc.

△13

5,574

+ 140

5,557

DPU

Total units outstanding (units)

DPU (yen)

1,874,960 2,898

・Operating income (+13 mn yen)

Other Indices (million yen)

- Maintenance and repairs +20

- Office rent (pass-through) +7

NOI

NOI yield

Acquisition price

(weighted average based on the number of operating days during the period) (Note)

7,391 3.8% 390,690

- Residential rent (pass-through) +4

- Depreciation +3

- Asset management fee △20

(Note) If properties are acquired during the period, the acquisition price is the weighted average based on the number of operating days.

Location

23-1, Toranomon 1-chome, Minato-ku, Tokyo

Construction dateMay 2014

Total number of floors

52 floors above ground, 5 floors below ground

Gross floor area

241,581.95 m2

Portions of acquisition

11% quasi-co-ownership interest in trust beneficial interests

Acquisition price

Appraisal value

NOI yield

Acquired as of September 1, 2020

12,220 mn yen

15,232 mn yen

3.4%

To be acquired on

August 2, 2021

7,870 mn yen

9,856 mn yen

3.4%

Total acquired: 78% quasi-co-ownership interest including past acquisition

1. Super high rise tower - Tokyo's new landmark

Quake-resistance structure with 52 floors and 247 meters above ground.High-specification offices with a broad floor plate of approx. 1,000 tsubo, international-standard conference facilities, Japan's first Andaz hotel "the Andaz Tokyo", retail facilities and residences.

2. Located in the center of the Toranomon area where further development is expected

Directly connected to "Toranomon Hills Station" on the Hibiya subway line and 6 transit stations and 11 lines are nearby. It is easily accessible from

Haneda Airport and ideal as a new hub for international business.

As a result of a number of redevelopment projects currently in progress around the building, the Toranomon area has begun to rapidly evolve into an international urban center.

＜Acquisition portion＞

Hotel

Residential

Conference facilities Restaurant, etc.

Office

Portion of the red area

(note)

(Note) MHR acquired the trust beneficial interests in 87.95% co-ownership interest in compartmentalized ownership of the 28-35th floors

Residence Toranomon Hills Residence

Pleasing views of central Tokyo landmarks such as Tokyo Tower, Rainbow Bridge, Tokyo Sky Tree and the open green space of the Imperial Palace can be viewed from residences located on the 37th to 46th floors. Hotel services in cooperation with Andaz Tokyo are available.

Retail

Shops and Restaurants

With the concept of "Communication Hub", restaurants are designed to provide international cuisine that satisfy customers from Japan and overseas. Various people such as office workers, conference attendees and hotel guests gather in this space uniquely designed to facilitate communication.

Hotel

Andaz Tokyo

Hyatt's boutique lifestyle hotel "Andaz Tokyo" is Japan's first Andaz. Andaz means "personal style" in Hindi. The hotel values the individuality of the area and incorporates the charm of the land into design and its' service.

Evolving as an International Urban Center and a Global Business Hub

Upon completion of Toranomon Hills Business Tower, Toranomon Hills Residential Tower and the currently planned Toranomon Hills Station Tower (tentative name), the total area of the Toranomon Hills complex including Toranomon Hills Mori Tower will reach about 7.5 hectares and about 800,000m2 of the total floor space. The area will evolve into a true "international unban center and a global business hub" with integrated functions such as international standard offices, residences, hotels, retail facilities and transportation infrastructure.

2-4 Dividends per unit growth record

3,200

3,000

2,800

2,600

2,400

2,200

2,000

1,800

1,600

1,400

1,200

27th

8th

9th

10th

11th

12th

13th

14th

15th

16th

17th

18th

19th

20th

21st

22nd

23rd

24th

25th

26th

28th

29th

30th

31stperiod period period period period period period period period period period period period period period period period period period period period period period periodJul. 2010

Jan. 2011

Jul. 2011

Jan. 2012

Jul. 2012

Jan. 2013

Jul. 2013

Jan. 2014

Jul. 2014

Jan. 2015

Jul. 2015

Jan. 2016

Jul. 2016

Jan. 2017

Jul. 2017

Jan. 2018

Jul. 2018

Jan. 2019

Jul. 2019

Jan. 2020

Jul. 2020

Jan. 2021

Jul. 2021

Jan. 2022

Central Tokyo ratio

Tokyo's three central wards Tokyo's five central wards and vicinity

88.1% 100%

93.5%

Premium Properties

99.0%

0.90%

A group of properties with high convenience, comfort, and safety that will be chosen to function as headquarters even after the spread of telecommuting

Fixed-rent master lease ratio

65.5%

Premium properties in central Tokyo are advantageous for capturing medium- to long-term demand, and fixed-rent master leases can be effective for short-term vacancies

*The figure above is for after the acquisition of the new property

Impact of COVID-19 on business performance (29th period)

Office: No significant impact. Maintained high occupancy rates

Occupancy Rate 99.7% in the 28th period and 99.6% in the 29th period

Even as office vacancy rates rose in the five central wards, including Minato Ward, a high occupancy rate was maintained due in part to the excellent location and quality of MHR's properties

Rent trends

Rent increases have continued for both rent revision and tenant replacement. As a result, the rent gap has narrowed

Rent exemption and non-payment

No incidents

Residential: Occupancy rates have declined at some properties, but the impact has been minimal

Occupancy Rate decreased from 96.1% in the 28th period to 94.9% in the 29th period

While occupancy rates have declined at some properties, the overall portfolio impact has been minimal

Rent trends

Rent increase upon rent revision has continued to result in increases. New rents have declined temporarily at some properties where occupancy rates declined

Rent exemption and non-payment

No incidents

Credit rating

(JCR)

AA(Stable)

LTV (Appraisal)

38.9%

The procurement environment has not changed despite the

COVID-19 pandemic. Investment unit prices are stable, and public offerings have been conducted

2-6 Increase in appraisal NAV per unit

(yen/unit) 160,000

150,000

140,000

130,000

120,000

110,000

100,000

90,000

80,000

70,000

60,000

50,000

19th period Jan. 2016

9th period Jan. 2011

10th period Jul. 2011

11th period Jan. 2012

12th period Jul. 2012

13th period Jan. 2013

14th period Jul. 2013

15th period Jan. 2014

16th period Jul. 2014

17th period Jan. 2015

18th period Jul. 2015

20th period Jul. 2016

21st period Jan. 2017

22nd period Jul. 2017

23rd period Jan. 2018

24th period Jul. 2018

25th period Jan. 2019

26th period Jul. 2019

27th period Jan. 2020

28th period Jul. 2020

29th After period acquisition Jan.

2021

2-7 Forecasts

The 30th period is forecast to have increased revenue, income, and DPU compared with the 29th period. The 31st period is expected to end at around the same level as the 30th period

While the contract for the only master lease for which fixed rent significantly deviates from the market rent will be renewed at a lower level in the 31st period, a property acquisition will be conducted at the same time to maintain the DPU (forecast) at the same level of the 30th period

Cancellations have not particularly increased due to COVID-19, and the occupancy rate is expected to remain at a high level

29th period Jan. 31, 2021

30th period Jul. 31, 2021

31st period Jan. 31, 2022

Increase/decrease factor (29th - 30th)

ActualForecastDifferenceForecast

・Operating revenue (+0 mn yen)

- Full period contribution of property

Operating Highlights (million yen)

acquired in 29th period +43

Operating revenue

Rent revenues

Other operating revenues Operating expenses

Expenses related to properties

SG&A

Operating income

9,820 9,614 206 3,646 3,315 331 6,173

Non-operating income 0

Non-operating expenses 598

Ordinary income 5,576

Net income 5,575

Total dividends

5,574

- Office Rent (pass-through) △25

- Residential (pass-through) △7

- Cancellation penalty △5

- Utilities and other revenue △3 ・Operating expenses (+20 mn yen)

- Maintenance and repairs +12

- Full period contribution of property
acquired in 29th period +10
- Property taxes for property
acquired in 29th period +10

- Depreciation +7

- Asset management fee △15

- Property management fee △8 ・Non-operating expenses (△22 mn yen)

- Interest expenses, etc. △18

Increase/decrease factor (30th - 31st)

5,576

・Operating revenue (+79 mn yen)

- Property acquisition in 31st period +169

DPU

- Utilities and other revenue +32

Total units outstanding (units)

DPU (yen)

1,916,330 2,909

- Residential Rent (pass-through) +4

- Office Rent (fixed rent master lease) △92

Other Indices (million yen)

- Office Rent (pass-through) △41 ・Operating expenses (+69 mn yen)

- Property acquisition in 31st period +40

NOI

NOI yield

Acquisition price

(weighted average based on the number of operating days during the period)

7,561 3.7% 400,851

- Utilities +28

- Property taxes for property

acquired in 29th period +10

- Property management fee △11 ・Non-operating expenses (+9 mn yen)

- Interest expenses, etc.

(new borrowings in 31st period) +22

- Interest expenses, etc. △5

- Amortization of investment unit issuance cost △6

2-8 Highest quality portfolio among all J-REITs

Investment strategy based on long-term perspective

Invest in properties that can be expected to maintain and improve asset value over the long run

True premium properties in central Tokyo are sure to capture office demand by functioning as headquarters, even after the spread of telecommuting that has been triggered by COVID-19

Invest in properties that are located in areas that can expect improved asset value for the entire area based on regional development and area management, instead of only focusing on the value of individual properties

Even amidst Japan's declining population and changes to work styles that have been triggered by COVID-19, premium properties in central Tokyo that are "truly central" and in "excellent locations" are sure to capture office demand by functioning as headquarters

② Investing in premium properties

Property with excellent facilities, earthquake resistance and environmental performance

Premium properties with excellent facilities, high earthquake resistance, and environmental performance that offer excellent convenience, comfort, and safety will provide competitive advantages, regardless of economic trends or the spread of telecommuting that has been triggered by COVID-19

Invest in properties that can be expected to further improve profitability and asset value by continuously developing over time alongside the entire region through excellent regional development and area management, instead of only focusing on the value of individual properties

2-9 (1) Location

Highest property percentage in Central Tokyo among J-REITs

Estimated population in central Tokyo

(Note) The ratios represent proportion of acquisition price to total acquisition price.

Area

Population in 2015

Estimated population in 2045

3 central wards in Tokyo	442,000	594,000
5 central wards in Tokyo	1,000,000	1,175,000

Tokyo	13,515,000	13,606,000	+0.7%
Osaka	8,839,000	7,335,000	△ 17.0%
Aichi	7,483,000	6,899,000	△ 7.8%

△ 16.3%

Nationwide

127,094,000

106,421,000

(Source) Prepared by the Asset Manager based on the "Regional Population Projections for

Japan (estimated in 2018)" by the National Institute of Population and Social Security Research.

Premium Properties (Excellent comfort and safety with extensive facilities)

＜Overview and facilities of representative properties＞

Property name	Gross floor area	Access from the nearest station	Number of shops & restaurants	Hotel (spa)	Cultural facility Observatory	Conference	Share office	Residential	Green coverage of the site
Roppongi Hills	758,203㎡-	Connected to Roppongi Station	228	Grand Hyatt Tokyo (NAGOMI SPA AND FITNESS)	Mori Art Museum Tokyo City View TOHO Cinemas	Academyhills Ropponngi Hills Club	〇	〇	30.1%
Toranomon Hills (After total project completion)	793,585㎡-	Connected to Toranomon Hills Station	Not fixed (approx. 8,000 tsubo)	Andaz Tokyo (AO SPA AND CLUB)	-	Toranomon Hills Forum	〇	〇	30.4%
ARK Hills	310,979㎡-	2-minute walk from Roppongi 1-chome Station	55	ANA InterContinental (THANN SANCTUARY SPA AKASAKA)	Suntory Hall	ARK Hills Club	〇	〇	43.3%
Atago Green Hills	151,106㎡-	3-minute walk from Onarimon Station	18	(Atago Green Hills SPA)	-	-	-	〇	51.9%

(Source) Prepared by the Asset Manager based on disclosed materials as of August 31, 2020. (Note 1) Describes the outline of the entire areas and facilities including properties owned by MHR.

(Note 2) "Connected" under the "Access from the nearest station" describes the possible direct connection by concourse etc..

Earthquake-resistant feature

Environmental performance

Highest quality among all J-REITs

※ PML refers to the probable maximum loss ratio expected to result from an earthquake.

A smaller figure indicates superiority in earthquake-resistance.

Property name	Type	PML	Earthquake-resistant feature
Roppongi Hills Mori Tower	Office	0.59%	Seismic damping
ARK Mori Building	0.78%	Seismic damping
Koraku Mori Building	0.73%	Seismic damping
ARK Hills South Tower	1.56%	Seismic damping
Toranomon Hills Mori Tower	0.50%	Seismic damping
Holland Hills Mori Tower	0.85%	Seismic damping
Akasaka Tameike Tower	Office (Partly residential)	1.79%	Seismic damping
Atago Green Hills	MORI Tower	2.35%	Seismic damping
Forest Tower	2.34%	Seismic damping
Plaza	5.94%	－
Roppongi First Plaza	Residential	2.20%	－
Roppongi View Tower	2.20%	－

※ In acquisition price base by excluding Laforet Harajuku (Land)

CASBEE for Existing Buildings: Rank S

Roppongi Hills	ARK Mori	Atago Green Hills Toranomon Hills	Holland Hills
Mori Tower	Building	(MORI Tower) Mori Tower	Mori Tower

DBJ Green Building Certification: Four stars

CASBEE for Existing Buildings: Rank A

Akasaka Tameike	Koraku Mori
Tower	Building	South Tower

ARK Hills

Total area: approx. 7.5ha

Total floor area: approx. 800,000m2

Office space: approx. 300,000m2

Residential units: approx. 720

Retail space: approx. 26,000m2

Green space: approx. 15,000m2

Mixed use Tower located at the center of future grand boulevard in Tokyo

A 15-story mixed use tower with commercial facilities with a total rental floor area of approximately 10,000m²

Cafe/dining and event space "THE CORE KITCHEN/SPACE" which faces the Shintora-Dori aims to be a creator's hub where creative industry people gather, interact, and generate ideas.

An "incubation center" with shared lounges and meeting rooms is located on the 3rd floor and start-ups expanding into Japan from overseas and venture companies have moved in.

Toranomon Hills Business Tower (Completed Jan. 2020)

（c）Mariko Mori≪Cycloid Ⅴ≫

An international-standard, large-scale office building with an innovation center

Business Tower is a 36-story office tower, featuring international-standard, large-scale office space of approximately 96,000m2, and retail facility area of approximately 7,600m2.

The tower is directly connected to Toranomon Hills station on the Hibiya subway line as well as Toranomon station on the Ginza subway. A bus terminal is located on the first floor to function as a "Gateway to Tokyo" via various bus lines including the BRT (Bus Rapid Transit) connecting city center and waterfront areas, and via airport limousine buses.

Offices occupy 32 floors from the 5th floor to the 36th floor with the standard rentable floor area of 3,000m2. Refreshment corners are provided in the common area on each floor aimed at promoting communication. In addition, preparation for an emergency has been arranged through a disaster stockpiling warehouse on each floor.

An original energy plant that supplies electricity and heat is installed in the Toranomon Hills area on the third basement floor. It also provides the electricity and heat sufficient to continue urban functions even in the event of a disaster, contributing to the safety and security of the Global Business Center.

From the first basement floor to the 3rd floor, commercial spaces with a total of 58 restaurants and stores will support global lifestyles. The 3rd floor will house Toranomon Yokocho, a landmark dining facility featuring offerings from famous stores from all over Tokyo.

On the 4th floor will be a large membership-based incubation center "ARCH," which was established especially to support large enterprises' internal business reforms and new business creation. It boasts around 3,800m2 of office work space and aims to become a base for Japan's unique innovation ecosystem.

Development around MHR's properties (Toranomon-Azabudai Project: projected completion Mar. 2023)

The future version of "Hills" boasts an astonishing scale and impact

Large central square of approx. 6,000m² is set in the center of the city and various city functions such as offices, residences, hotel, an international school, retail facilities and cultural facilities will be tightly integrated.

Total floor area will be 861,500m², with 213,900m² of office space, approx. 1,400 residential units. Approx. 20,000 office workers and 25-30 million people per year are expected to visit.

The main tower will soar 64 stories and 330m in height. Offices in the main tower, the West Tower and Podium Building will encourage free and creative work.

"Modern Urban Village", a city-within-a-city full of greenery and connects people

The core concept of the "Toranomon-Azabudai Project" is a "Modern Urban Village,"

a unique neighborhood that will combine the sophistication of a megalopolis with the intimacy of a small village. It will be a completely new city like no other in the world. It will cover an area of approx. 8.1 ha and will feature extensive landscaping totaling approx. 2.4 ha including a 6,000m² central square.

Creating community and innovation through the Area Management by sponsor

Toranomon Hills Area

Thursday Gathering (Toranomon Hills)

Partnership with world's largest innovation center

"Thursday Gathering" by Venture Café, a sister organization of Cambridge Innovation Center, promotes exchanges between participants to support the creation of new innovations.

TORANOMON FLOWER MART (Toranomon Hills Mori Tower)

ARCH

(Toranomon Hills Business Tower)

Incubation Center

"ARCH"

"ARCH," a large membership-based incubation center was established especially to support large enterprises' internal business reforms and new business creation. It boasts around 3,800 m2 of office work space and aims to become a base for Japan's unique innovation ecosystem.

Touring stand (Shintora-Dori)

Community connected by flowers

"Toranomon Flower Mart," a new market unique to Toranomon Hills serves as an intersection connecting prominent greenery in central Tokyo including Atagoyama and Hibiya Park. Unique and popular flower shops that do not usually get together gather at the same place, and workshops, etc. are also held.

Understanding attractiveness across Japan

"Touring Stand" is a collection of dining facilities standing side by side along the road where people can enjoy seasonal ingredients and local cuisine from across Japan including at the special event "Touring Ippinichi."

Creating community and innovation through the Area Management by sponsor

ARK Hills Area

KaleidWorks (ARK Mori Building)

ARK Hills Music Week (ARK Karajan Place)

Workplace where venture capital gathers

"KaleidWorks" consists of an office area where independent venture capitalists representing Japan are located and a lounge area. People who want to innovate in a wide range of fields can interact on common grounds in shared spaces.

Close experience of high-quality music

"ARK Hills Music Week" is a unique music festival where people can casually enjoy high-quality music. Many specially selected music events where people of various ages and nationalities can interact with each other in the city are held during the period.

Hills Marche (ARK Karajan Place)

Roppongi Hills Area

Roppongi Art Night (Roppongi Hills Arena)

Pioneer of urban markets: Hills Marche

Hills Marche is the first Marche Japon Project of the Ministry of Agriculture, Forestry and Fisheries. Based on the concept that "the best ingredients are in the city," through fresh, local food we reinforce the rich lifestyle of ARK Hills.

Art Festival representing

Tokyo

"Roppongi Art Night," an art festival representing Tokyo, integrates art and the city to improve the cultural image of Roppongi and create a pioneering model of urban development through art in the metropolis Tokyo.

Realized growth in DPU and NAV by acquiring premium property in central Tokyo

Additional acquisition of Toranomon Hills (September 2020, 12.2 billion yen), with additional acquisition planned (August 2021, 7.8 billion yen).

Acquisitions made at a cost lower than appraisal value, leading to growth in DPU and NAV

Ability to acquire premium properties in central Tokyo without competitive bidding by utilizing the abundant and extensive property pipeline of

Mori Building, the sponsor

Change in rent and vacancy rate of office buildings (Tokyo's five central wards)

(%)

200

180

160

140

120

100

80 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

8.9% 9.0% 8.7% 8.1% 7.3%

149

145

5.5%

4.7%

4.0% 3.6%

127

120

3.1%

2.6%

114

113

109 103

1.9% 1.6%

100

⇒ Estimate

4.5% 4.5% 4.5% 4.6% 4.3%

128

3.7% 125

122

119

118

119

10.0

9.0

8.0

Rent indexVacancy rate

7.0

(Source)

6.0 Prepared by the Asset Manager based on the "Autumn 2020 Office Rent Forecast in Tokyo,

5.0

Osaka and Nagoya (2020-2025)" by the Office Market Trends Research Committee

4.0

(Japan Real Estate Institute and Miki Shoji Co., Ltd.).

3.0

(Note)

2.0

1.0

0.0

The rent index targets large and medium buildings (standard floor area of 100 tsubo or more) in Tokyo's five central wards. The rent index is rebased to 100 as of 2010.

Change in return on real estate investmentMori Building's extensive property pipeline

(%)

4.9

4.6

4.3

4.0

3.7

3.4

3.1

2.8

Total assets:	Number of properties under
2.2 trillion yen	management: 96 buildings
(as of the end of September, 2020)	(as of April, 2020)

MHR has "preferential negotiation rights"

(Source) Prepared by the Asset Manager based on "The Japanese Real Estate Investor

Survey" by the Japan Real Estate Institute.

(Note) Figures reflect the time of survey as of October each year.

Trend in assets under management (based on acquisition price)

1st Jan. 2007

3rd Jan. 2008

5th Jan. 2009

7th Jan. 2010

9th Jan. 2011

11th Jan. 2012

13th Jan. 2013

15th Jan. 2014

17th Jan. 2015

19th Jan. 2016

21st Jan. 2017

23rd Jan. 2018

25th Jan. 2019

27th Jan. 2020

Acquired premium properties in central Tokyo lower than appraisal values

(Scheduled as of August 2, 2021)

Toranomon Hills Mori Tower

Anticipated acquisition price

7,870 million yen

Appraisal value

9,856 million yen

Location

Minato-ku, Tokyo

Building age

29th Jan. 2021

After acquisition

6.6 years 0.50%

22.0 years

PML

4.33%

(Note 1) Average based on information of acquisitions (23 properties) disclosed from August 2020 to January 2021. (Note 2) Discount of acquisition price to appraisal value = (Acquisition price - appraisal value) / appraisal value

Mori Building Group's involvement

(Source) Prepared by the Asset Manager based on Mori Building's "Mori Building Handy Map Mori Building Map/Home Route Support Map 2021." (Note 1) Some of the properties have been partially acquired and held by MHR.

(Note 2) Properties are developed, owned, managed and planned for development by Mori Building Group, and there are no properties currently anticipated to be acquired by MHR.

Maintained high occupancy rate amidst COVID-19 pandemic

Even as office vacancy rates rose in the five central wards, including Minato Ward, MHR's properties have not been impacted due to their excellent location and quality

Office rents (pass-through type) in the 29th period have continued to increase for both rent revision and tenant replacement. While the occupancy rates for some residential properties decreased, the overall portfolio impact has been minimal

Trend in occupancy rates

(%)

100

25th January 2019

24th July 2018

26th July 2019

27th January 2020

28th July 2020

29th January 2021

Comparison of Vacancy Rates in Central Tokyo Offices (since January 2020)

(%)

7.0

6.0

5.0

4.0

3.0

2.0

1.0

0.0

Jan. 2020

Mar.

May.

Jul.

Sep.

Nov.

Jan. 2021

(Source) Prepared by the Asset Manager based on "Office Market Data" by Miki Shoji Co.,

Ltd.

(Note) Figures of "Mori Hills REIT" are the total figures for the office sections of all owned properties.

Result of rent revision and tenant replacement (pass-through type)

Net impact of rent revisions accumulated since 24th period
Rent revision rate (Office)
(Monthly rent basis)
(%)
(million yen)
+10	+30

+27.0 mn yen

+6.9%

+7.1%

+5.6%

+3.6%

+2.5%

+1.5%

※ Average of all contracts subject to revision

Residential

+25

+25.7 mn yen

Office

5.6

+21.8 mn yen

5.2

+20

4.9

+16.7 mn yen

+15.4 mn yen

+15

+13.0 mn yen

4.2

3.7

3.1

20.5

21.3

+10

16.8

11.7

12.5

24th Jul. 2018

25th Jan. 2019

26th Jul. 2019

27th Jan. 2020

28th Jul. 2020

29th Jan. 2021

9.9

Rent revision rate (Residential)

(%)

+10

+5.9%

+6.0%

+5.4%

+5.3%

+4.8%

+2.7%

※ Average of all contracts subject to revision 0

24th	25th	26th	27th	28th	29th
Jul. 2018	Jan. 2019	Jul. 2019	Jan. 2020	Jul. 2020	Jan. 2021

Net impact on increase/decrease of tenant replacement

(Monthly rent basis)

(million yen) +30

(Office)

(Residential)

+25 +20

+14.9%

※ Average of all contracts with replacement

+7.5%

+3.6%

+15 +10 +5

Old tenant

New tenant

△0.5％

24th	25th	26th	27th	28th	29th	28th	29th	28th	29th
Jul. 2018	Jan. 2019	Jul. 2019	Jan. 2020	Jul. 2020	Jan. 2021	Jul. 2020	Jan. 2021	Jul. 2020	Jan. 2021

This indicates that contracts have not reached market rent levels and have room for upside

(Note 1) Market rent is based on the report by CBRE K.K.

(Note 2) Rent gap = Total tenants' rent ÷ "Total market rent" - 1

(Note 3) Figures reflect move outs of end tenants confirmed as of January 31, 2021

The rent gap has narrowed due to the continued rent increases for both rent revision and tenant replacement and only the slight decrease in new rents at some properties

Aim for the maintenance and improvement of overall rental income, while considering the upward revision of rents for tenants with a large rent gap

Overview of fixed rent master lease

Ratio of fixed rent master lease (after new acquisition)

Realize stable cash flow

● Structural changes to office demand will not impact premium properties in central Tokyo

● Display a defensive posture to the temporary uptick in vacancy

Monthly rent by contract expiration

Maintaining a strong financial structure with a credit rating (JCR) of AA (stable), and LTV (appraisal-value basis) of 38.1%

The fund procurement environment has not changed despite the COVID-19 pandemic, and because the interest rate for new debt is below the interest rates of existing debt, financial costs are expected to decline upon refinancing

The policy is to continue to maintain LTV (book-value basis) in the mid-40% range and the average remaining duration of debt at 4.0 years or longer. New green bonds have been issued (November 2020: 3.5 billion yen, February 2021: 2.0 billion yen)

Reduction in LTV

Overview of debt financing

(%)

End of 28th period Jul. 31, 2020	End of 29th period Jan. 31, 2021
Debt Balance	179,222 mn yen	184,422 mn yen
LTV (book value basis)(Note 1)	45.7%	45.8%
LTV (appraisal value basis)(Note 2)	38.0%	38.1%
Avg. remaining duration	4.7 years	4.6 years

(Note 1) LTV (book value basis) is calculated as [Interest bearing debt

/Total assets].

(Note 2) LTV (appraisal value basis) is calculated as [Interest-bearing debt/Appraisal value based total assets (Total assets + Total appraisal value - Total book value)].

period period period

Jan. 2011

Jul. 2011

Jan. 2012

・・・

period period period period period period period period period acquisition

Jan. 2017

Jul. 2017

Jan. 2018

Jul. 2018

Jan. 2019

Jul. 2019

Jan. 2020

Jul. 2020

Jan. 2021

Reduction in average interest rate

(including borrowing expenses)

Long-term debt ratio/ Fixed rate ratio

2(.2%5)

2.00

1.75

1.50

1.25

1.00

0.75

0.50

0.25

9th 10th 11th period period period

＜Long-term debt ratio＞

＜Fixed rate ratio＞

Fixed 91.7%

21st 22nd 23rd 24th 25th 26th 27th 28th 29th (Note) Total interest-bearing debt cost is calculated as [(interest expenses + interest

period period period period period period period period period

Jan. 2011

Jul. 2011

Jan. 2012

・・・

Jan. 2017

Jul. 2017

Jan. 2018

Jul. 2018

Jan. 2019

Jul. 2019

Jan. 2020

Jul. 2020

Jan. 2021

expenses on investment corporation bonds + borrowing expenses + amortization of investment corporation bond issuance costs) ×365 ÷operating days during each period ÷average interest-bearing debt balance during each period].

Extension in remaining duration of debt

(years)

5.5 5.0

4.6

4.7

4.3

4.4

4.5

4.2

4.0

3.8

3.7

3.5

3.0

2.5

2.0

1.5

1.4

・・・

1.5

1.2

1.0

9th 10th 11th period period period

・・・

Jan.	Jul.	Jan.	Jul.	Jan.	Jul.	Jan.	Jul.	Jan.
2017	2017	2018	2018	2019	2019	2020	2020	2021

21st 22nd 23rd 24th 25th 26th 27th 28th 29th period period period period period period period period period

Jan. 2011

Jul. 2011

Jan. 2012

Overview of maturity (as of January 31, 2021)

(billion yen)

33rd period Jan. 2023

30th period Jul. 2021

Average interest 0.8% rate

Rating

4.6

31st period Jan. 2022

32nd period

Jul. 2022

34th period

Jul. 2023

35th period Jan. 2024

36th period Jul. 2024

37th period Jan. 2025

38th period

Jul. 2025

39th period Jan. 2026

40th period

Jul. 2026

41st period Jan. 2027

42nd period Jul. 2027

43rd period Jan. 2028

44th period Jul. 2028

45th period Jan. 2029

46th period

Jul. 2029

47th period Jan. 2030

48th period Jul. 2030

0.9%

0.7%

0.5%

0.6%

0.7%

0.6%

0.5%

Important ESG Issues (Materiality)

Materiality

● BCP measures (disaster prevention and building resilience)
● Tenants' health, comfort and convenience

Social

● Respect for human rights
● Promote diversity

● Talent development

Main Initiatives

● Participate in Japan Climate Initiative
● Support the TCFD recommendations
● Promote energy savings (such as introducing the energy saving technologies)
● Expand use of renewable energy
● Promote greenery and take measures against heat island
● Protection of biodiversity
● Various initiatives to obtain Green Building certifications and make improvements
● Implement training regarding Green Building

● Enhance BCP Measures
● Strengthen emergency management systems and implement general disaster-readiness training
● Initiative for barrier-free accress
● Due diligence when acquiring real estate
● Conduct Tenant Satisfaction Survey
● Create an appropriate environment for a whistleblower system
● Implement human rights and diversity training (including LGBT)
● Create a pleasant working environment for women

● Provide personnel evaluations and feedback from diverse perspectives including compliance and ESG initiatives
● Provide various training and qualification acquisition systems based on courses

● Promote a healthy and comfortable work environment and improve employee's work/life balance
● Increase employee's satisfaction
● Mutual communication with Stakeholders

Governance

● Strive for fair and effective corporate governance
● Adhere to compliance and corporate ethics
● Prevent conflict-of-interest transactions
● Identify risks and manage responses
● Respond to requests for ESG information disclosure

● Promote paid holiday acquisition and overtime work reduction
● Maintain systems for employee safety and health management
● Implement health checks
● Conduct Employee Satisfaction Survey

See "ESG Report"

● Implement evaluation of the effectiveness of the board of directors
● Conduct compliance training including fraud prevention
● Regularly expose risks, as well as monitor and respond to risks appropriately
● Enhance ESG information disclosure on the website
● Issuance of ESG Report

GRESB Assessment

In the 2020 GRESB Real Estate Assessment, MHR received a "Green Star" rating for the ninth consecutive year, and received the highest evaluation of "5 Stars" in the GRESB Rating (Note).

(Note) The comparative assessment of the overall score was initially introduced in 2016. It is a global ranking utilizing a five-star scale ("5 Stars" as the highest rank).

GRESB is an annual benchmarking assessment to measure ESG (Environmental, Social and Governance) integration of real estate companies and funds, as well as the name of organization which runs the assessment. It was founded in 2009 by a group of major European pension funds who played leading roles in launching Principles for Responsible Investment (PRI).

ESG Report (Japanese)

MHR's Website

This report describes the overall efforts of MHR and the Asset Manager Mori Building Investment Management Co., Ltd. to contribute to the realization of a sustainable society and to maximize unitholder value over the medium to long term.

URL:https://www.mori-hills-reit.co.jp/Portals/0/images/ir/ir_pdf/ESG_Report_2020.pdf

The pages dedicated to ESG have expanded, and information is proactively disclosed.

URL:https://www.mori-hills-reit.co.jp/en/outline/Sustainability/tabid/171/Default.aspx 32

Since its opening in 2003 as Japan's largest ever urban redevelopment at about 11.6 hectares, more than 40 million people have visited Roppongi Hills each year from all over the world. As this community has matured, Roppongi Hills has only multiplied its global magnetic attraction. Japan real estate development had been limited by an economic perspective until Mori Building revolutionized the concept by creating a community where humanity, culture, interaction and vision toward the next era is born.

Roppongi Hills Mori Tower is the main tower of Roppongi Hills and is 54 floors above ground and 238 meters high and has established itself as a landmark of Tokyo. Offices located from the 8th floor to the 48th floor boast floor plates of about 1,360 tsubo (about 4,500m²), among the largest floor areas of skyscrapers in Japan. It is a state-of-the-art office building with an ultra high-speed network, outstanding earthquake resistance performance and thorough security.

Cinema

TOHO Cinemas Roppongi Hills

One of the top cinema complexes in Japan, TOHO offers nine movie screens, a variety of daily show times and facilities with unprecedented comfort and functions. These theaters ushered in a whole new culture of movie going in Roppongi.

Museum

Mori Art Museum

"The world's nearest art museum to the sky", the museum collaborates with a network of highly respected international art museums to create a space to appreciate the world's top modern art. It is open until 10 pm during exhibitions to welcome visitors after work or dinner.

Residence Roppongi Hills Residence

In Roppongi Hills where international cultural is fostered and people come to interact, Mori Building designed these residences with the comfort of the people as a top priority, to provide the template for a "new life overflowing with affluence and warmth".

Retail

Shops and Restaurants

Retail facilities are comprised of more than 200 "only one" shops and restaurants divided into four areas with different concepts. There are many shops on the lower floors of the buildings and on the street so visitors can enjoy shopping, eating and drinking while walking around the open spaces that are full of greenery.

Hotel

Grand Hyatt Tokyo

Grand Hyatt Tokyo offers a dynamic city space featuring 10 highly distinctive restaurants and bars, 387 guestrooms designed for the highest level of relaxation, 16 banquet facilities and much more. The wide range of facilities inside the hotel and in Roppongi Hills enable guests to enjoy leisurely time at the hotel to the fullest extent.

Stable Supply of Power from Independent Power Station

Roppongi Hills uses its own energy plant (a specially designated power supply business facility) to supply electrical power to the area. Because this plant uses city gas (medium pressure gas) as the fuel, it is not affected by power restrictions on the use of electricity and is able to provide an extremely stable supply of electricity. The use of a power supply with triple redundant safety allows the building to construct a power supply system with high reliability.

Toranomon Hills is located in the "Special Zone for Asian Headquarters" where Tokyo Metropolitan Government seeks to attract foreign companies. This building is Tokyo's new landmark and consists of Japan's first Andaz hotel "Andaz Tokyo", high-specification offices, a high class residential area with outstanding views where hotel services are available, international-standard conference facilities and commercial facilities to supports various urban functions, along with an open space of about 6,000m².

ial Zone for Asian

Toranomon Hills Mori Tower

Office

Offices occupy the 6th to the 35th floors of "Toranomon Hills Mori Tower", a super high rise tower with 52 floors rising 247 meters above ground with a gross floor area of 30,000 tsubo. Standard rent floors' average size are about 1,000 tsubo (about 3,300m²) with a ceiling height of 2.8 meters and they provide flexible and comfortable workspaces without pillars. Six transit stations and 11 lines are nearby and provide access to Haneda Airport which makes this building an optimal global business base.

Residence Toranomon Hills Residence

Retail

Shops and Restaurants

Hotel

Andaz Tokyo

Evolving as an International Urban Center and a Global Business Hub

3. Operation highlights

(yen/unit)

Dilution due to PO

NOI change of existing properties

OthersProperties acquired (29th)

Major factors behind change in NOI from existing properties:

Financing costs decrease

+ Decrease in maintenance and repairs +7

+ Decrease in depreciation +5

+ Office rent (pass-through) +5

+ Utilities and other revenue (net) +2

－ Increase in property management fee △13

－ Increase in property taxes △8

－ Residential rent (pass-through) △5

NOI change of existing propertiesProperties acquired (29th)Financing costs decrease

Others

Major factors behind change in NOI from existing properties:

+ Decrease in property management fee +4

－ Office rent (pass-through) △13

－ Increase in maintenance and repairs △7

－ Increase in depreciation △4

－ Residential rent (pass-through) △4

－ Decrease in cancellation penalty △3

(Note) Factors that led to change are arrived at by dividing the change from the previous fiscal period by 1,916,330 units and indicated as an approximate figure in yen.

3-3 Change in unrealized capital gain/loss

100

△10

△20

△30

△40

29th

Unrealized capital gain/lossUnrealized capital gain/loss ratio

△14.9%

Unrealized capital gain/loss = Period end appraisal value - Period end book value Unrealized capital gain/loss ratio = Unrealized capital gain/loss / Period end book value

△31

1st period Jan. 2007

2nd period Jul. 2007

3rd period Jan. 2008

4th period Jul. 2008

5th period Jan. 2009

6th period Jul. 2009

7th period Jan. 2010

8th period Jul. 2010

9th period Jan. 2011

10th period Jul. 2011

・・・

21st period Jan. 2017

22nd period Jul. 2017

23rd period Jan. 2018

24th period Jul. 2018

25th period Jan. 2019

26th period Jul. 2019

27th period Jan. 2020

28th period Jul. 2020

Afterperiod acquisition Jan.

2021

△10

△20

3-4 Appraisal value

Principal use	Property name	Property No.	Acquisition price	Book value	As of end of 28th period Jul. 31, 2020	As of end of 29th period Jan. 31, 2021	Difference (B)－(A)	Difference (B)/(A)－1	Unrealized capital gain/loss (B)-book value
(A) Appraisal value (Note 1)	Yield (Direct capitalization method)	(B) Appraisal value (Note 1)	Yield (Direct capitalization method)	Discount rate (DCF)	Terminal yield (DCF)
Office	Roppongi Hills Mori Tower	O-0	115,380	111,330	148,100	2.9%	146,300	2.8%	2.5%	3.0%	△ 1,800	△ 1.2%	34,969
ARK Mori Building	O-1	62,480	61,479	63,700	3.2%	63,900	3.2%	2.9%	3.4%	200	0.3%	2,420
Koraku Mori Building	O-4	27,200	24,728	26,500	3.4%	25,500	3.4%	3.0%	3.7%	△ 1,000	△ 3.8%	771
Akasaka Tameike Tower	O-6	43,930	41,453	34,500	3.2%	34,800	3.2%	2.9%	3.4%	300	0.9%	△ 6,653
Atago Green Hills	O-7	42,090	40,085	46,900	3.4%	47,100	3.4%	2.9%	3.6%	200	0.4%	7,014
ARK Hills South Tower	O-8	19,150	18,663	25,200	3.0%	25,200	3.0%	2.8%	3.2%	0	0.0%	6,536
Toranomon Hills Mori Tower	O-9	48,430	47,998	44,800	2.6%	60,032	2.6%	2.3%	2.8%	15,232	34.0%	12,033
Holland Hills Mori Tower	O-10	16,330	16,239	21,800	3.2%	21,800	3.2%	2.8%	3.4%	0	0.0%	5,560
Sub total	374,990	361,979	411,500	－	424,632	－	－	－	13,132	3.2%	62,652
Residen tial	Roppongi First Plaza	R-3	2,100	2,228	2,530	3.9%	2,610	3.8%	3.6%	4.0%	80	3.2%	381
Roppongi View Tower	R-4	4,000	4,074	3,260	4.0%	3,400	3.9%	3.7%	4.1%	140	4.3%	△ 674
Sub total	6,100	6,302	5,790	－	6,010	－	－	－	220	3.8%	△ 292
Retail	Laforet Harajuku (Land) (Note 2)	S-1	21,820	22,074	40,600	3.8%	41,000	－	3.8%	－	400	1.0%	18,925
others Sub total	21,820	22,074	40,600	－	41,000	－	－	－	400	1.0%	18,925
Total	402,910	390,355	457,890	－	471,642	－	－	－	13,752	3.0%	81,286

(Note 1) "Appraisal values" at the end of each fiscal period are based on the Ordinance Concerning Calculation of Investment Corporations, asset valuation methods and standards defined in the

Articles of Incorporation of the Company and rules defined by the Investment Trust Association. Figures in the property appraisal reports created by Japan Real Estate Institute are indicated for properties other than ARK Hills South Tower and figures in the property appraisal report created by Daiwa Real Estate Appraisal Co., Ltd. are indicated for ARK Hills South Tower, respectively.

(Note 2) For Laforet Harajuku (Land), value in the "Yield (Direct capitalization method)" column for the 28th period shows the discount rate used in the DCF analysis.

3-5 Changes in the rent and occupancy rates

40,000

35,000

30,000

25,000

20,000

15,000

10,000

5,000

Office rent (yen/tsubo)Residential rent (yen/tsubo)Office occupancyResidential occupancyRetail occupancy

31,069

15,278

95.7%

96.7%

99.7%

30,642

14,858

98.4%

96.3%

100%

30,629

15,095

99.5%

97.9%

100%

30,842

15,302

99.7%

97.7%

100%

30,924

15,498

99.9%

96.8%

99.2%

31,020

15,698

100%

96.2%

98.8%

31,139

15,766

99.7%

96.1%

98.5%

(Note) The above rents and occupancy rates indicate the average rent and the average occupancy rate during relevant fiscal periods.

31,309

15,741

99.6%

94.9%

98.9%

31,394

15,609

99.0%

94.8%

98.9%

31,167

15,525

98.4%

95.8%

98.9%

100

3-6 Tenant status by month and major tenants

Office: Rent and occupancy rate

(yen/tsubo)

40,000

30,000

20,000

10,000

Rent (yen/tsubo)Occupancy rate

Aug. 2020

31,221 99.8%

Top 5 tenants

(%) 100

Sep.

Oct.

Nov.

Dec.

Jan. 2021

31,332 99.8%

31,329 99.8%

31,377 98.8%

31,252 99.6%

31,342 99.6%

End tenants	Property name	Leased space (Note 1)	Ratio
Mori Building Co., Ltd.	Roppongi Hills Mori Tower ARK Mori Building Koraku Mori Building Atago Green Hills ARK Hills South Tower Toranomon Hills Mori Tower	113,996.81 m2	64.5%
Mylan Seiyaku Ltd.	Holland Hills Mori Tower	3,458.53 m2	2.0%
Mitsubishi UFJ Research and Consulting Co.,Ltd.	Holland Hills Mori Tower	3,436.90 m2	1.9%
Mori Building Ryutsu System Co., Ltd.	Laforet Harajuku (Land)	2,565.06 m2	1.5%
ITOCHU Techno-Solutions Corporation	Koraku Mori Building	2,116.88 m2	1.2%
Total of top 5 tenants	125,574.18 m2	71.1%

(Note 1) Leased space is the lease area stated in the lease contract with the end tenant.

It is multiplied by the relevant percentage of ownership for each properties. (Note 2) This indicates the figures as of January 31, 2021.

Residential: Rent and occupancy rate

(yen/tsubo)

25,000 20,000 15,000 10,000 5,000

Rent (yen/tsubo)Occupancy rate

Sep.

Aug. 2020

Oct.

Nov.

Dec.

15,766 95.5%

15,767 95.2%

15,650 94.5%

15,690 95.0%

15,795 94.9%

Tenant Contribution by Industry Type-Office

(%) 100

Jan. 2021

15,778 94.5%

(Note 1) As for fixed rent master lease, ratios are based on monthly rents of tenants who are actually using the floor areas as of January 31, 2021.

It is multiplied by the relevant percentage of ownership for each property. (Note 2) Business types are classified by the Asset Manager.

3-7 Financial overview (as of January 31, 2021)

Long-term debt ratio/Fixed rate ratio

Outstanding balances

＜Long-term debt ratio＞

＜Fixed rate ratio＞

Major financial indicator

End of 21st period Jan. 31, 2017	End of 28th period Jul. 31, 2020	End of 29th period Jan. 31, 2021
Debt balance	179,222 mn yen	184,422 mn yen
Long-term loan	162,222 mn yen	167,422 mn yen
Investment corporation bonds	17,000 mn yen	17,000 mn yen
LTV (Book value basis) (Note 1)	45.7%	45.8%
LTV (Appraisal value basis) (Note 2)	38.0%	38.1%
DSCR (Note 3)	16.0x	16.3x
Avg. remaining duration	4.7 years	4.6 years
Weighted avg. interest rate	0.48%	0.46%

(Note 1) LTV (Book value basis) is calculated as [Interest bearing debt/Total assets]. (Note 2) LTV (Appraisal value basis) is calculated as [Interest-bearing debt/Appraisal value

based total assets (Total assets ＋Total appraisal value－Total book value)]. (Note 3) DSCR is calculated as [Net income before interest expenses +Depreciation/

Interest expenses].

Lenders	Balance	Ratio
MUFG Bank, Ltd.	43,696 mn yen	26.1%
Mizuho Bank, Ltd.	29,898 mn yen	17.9%
Sumitomo Mitsui Banking Corporation	24,425 mn yen	14.6%
Sumitomo Mitsui Trust Bank, Limited	20,923 mn yen	12.5%
The Bank of Fukuoka	8,300 mn yen	5.0%
Resona Bank, Limited.	7,430 mn yen	4.4%
The Norinchukin Bank	7,000 mn yen	4.2%
Development Bank of Japan Inc.	5,950 mn yen	3.6%
Shinsei Bank, Limited	5,200 mn yen	3.1%
Mizuho Trust & Banking Co., Ltd.	4,800 mn yen	2.9%
The Nishi-Nippon City Bank, Ltd.	3,300 mn yen	2.0%
The Chugoku Bank, Limited.	1,500 mn yen	0.9%
Aozora Bank, Ltd.	1,000 mn yen	0.6%
The Hiroshima Bank, Ltd.	1,000 mn yen	0.6%
Oita Bank Co. Ltd.	1,000 mn yen	0.6%
Shinkin Central Bank	1,000 mn yen	0.6%
Nippon Life Insurance Company	1,000 mn yen	0.6%
Total borrowings	167,422 mn yen	100%
Investment corporation bonds	17,000 mn yen
Total interest-bearing debt	184,422 mn yen

3-8 Debt status (as of January 31, 2021)

Debt

Lender	Balance (mn yen)	Rate of interest	Borrowing date	Maturity date
Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd. Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited	6,500	0.75%	2014/11/28	2021/11/30
Development Bank of Japan Inc.	1,700	0.80%	2015/3/27	2023/3/27
Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd. Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited	6,500	0.57%	2015/5/29	2021/5/31
Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd. Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited	6,500	0.70%	2015/5/29	2022/5/31
Mizuho Bank, Ltd., MUFG Bank, Ltd. Sumitomo Mitsui Banking Corporation	6,000	0.49%	2015/8/31	2021/8/31
Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd. Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited	2,500	0.65%	2015/9/16	2023/8/31
Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd.	3,200	0.50%	2015/11/30	2022/11/30
MUFG Bank, Ltd., Mizuho Bank, Ltd.,Sumitomo Mitsui Trust Bank, Limited, Shinsei Bank, Limited	6,300	0.62%	2015/11/30	2023/11/30
Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd. The Norinchukin Bank, Resona Bank, Limited. Shinsei Bank, Limited, Mizuho Trust & Banking Co., Ltd. The Hiroshima Bank, Ltd.	7,500	0.33%	2016/3/31	2023/3/31
Sumitomo Mitsui Banking Corporation, MUFG Bank, Ltd. Mizuho Bank, Ltd., Sumitomo Mitsui Trust Bank, Limited The Bank of Fukuoka, Development Bank of Japan, Inc. Aozora Bank, Ltd.	7,100	0.41%	2016/3/31	2024/3/31
MUFG Bank, Ltd., Mizuho Bank, Ltd. Sumitomo Mitsui Trust Bank, Limited	7,200	0.50%	2016/3/31	2025/3/31
Shinkin Central Bank	1,000	0.18%	2016/3/31	2022/9/30
The Norinchukin Bank	500	0.37%	2017/8/1	2024/7/31
Sumitomo Mitsui Banking Corporation	1,100	0.47%	2017/8/1	2025/7/31
Sumitomo Mitsui Trust Bank, Limited	1,000	0.52%	2017/8/1	2026/7/31
The Bank of Fukuoka	500	0.52%	2017/8/1	2026/7/31
Resona Bank, Limited.	500	0.61%	2017/8/1	2027/7/31
Sumitomo Mitsui Trust Bank, Limited	2,000	0.48%	2017/8/1	2028/7/31
Mizuho Bank, Ltd.	1,100	0.58%	2017/8/1	2029/7/31
Mizuho Trust & Banking Co., Ltd.	500	0.58%	2017/8/1	2029/7/31
Oita Bank Co. Ltd.	1,000	0.23%	2017/11/30	2022/11/30
The Norinchukin Bank	600	0.49%	2017/11/30	2024/11/30
The Nishi-Nippon City Bank, Ltd.	1,000	0.49%	2017/11/30	2024/11/30
The Bank of Fukuoka	500	0.47%	2018/2/28	2025/8/31
Resona Bank, Limited.	500	0.47%	2018/2/28	2025/8/31
Mizuho Trust & Banking Co., Ltd.	1,500	0.47%	2018/2/28	2025/8/31
Shinsei Bank, Limited	500	0.54%	2018/2/28	2025/8/31
The Nishi-Nippon City Bank, Ltd.	500	0.54%	2018/2/28	2025/8/31
Sumitomo Mitsui Banking Corporation	2,650	0.55%	2018/2/28	2026/2/28
Sumitomo Mitsui Trust Bank, Limited	2,600	0.58%	2018/2/28	2027/2/28
Development Bank of Japan Inc.	750	0.64%	2018/2/28	2027/2/28
MUFG Bank, Ltd.	4,700	0.41%	2018/2/28	2027/8/31
Mizuho Bank, Ltd.	2,700	0.60%	2018/2/28	2030/2/28
Mizuho Bank, Ltd.	3,000	0.19%	2018/5/23	2022/5/23
The Nishi-Nippon City Bank, Ltd.	800	0.26%	2018/8/31	2022/8/31
Sumitomo Mitsui Trust Bank, Limited	2,400	0.33%	2018/8/31	2023/8/31
Mizuho Bank, Ltd.	3,000	0.43%	2018/8/31	2024/8/31
The Bank of Fukuoka	1,300	0.38%	2018/8/31	2024/8/31
The Norinchukin Bank	1,300	0.43%	2018/8/31	2024/8/31
Shinsei Bank, Limited	1,300	0.52%	2018/8/31	2025/8/31
Mizuho Trust & Banking Co., Ltd.	1,300	0.47%	2018/8/31	2025/8/31
Sumitomo Mitsui Banking Corporation	3,600	0.56%	2018/8/31	2026/8/31
Sumitomo Mitsui Trust Bank, Limited	1,400	0.67%	2018/8/31	2027/8/31
Development Bank of Japan Inc.	500	0.67%	2018/8/31	2027/8/31
MUFG Bank, Ltd.	5,000	0.43%	2018/8/31	2028/2/29
Resona Bank, Limited.	1,300	0.48%	2018/8/31	2028/8/31
Mizuho Bank, Ltd.	1,400	0.43%	2018/8/31	2029/8/31

Bond	Amount (mn yen)	Rate of Interest	Payment date	Maturity date
11th Series Unsecured Corporation Bond (7 years)	2,000	0.69%	2014/2/24	2021/2/24
12th Series Unsecured Corporation Bond (10 years)	2,000	0.87%	2014/11/27	2024/11/27
14th Series Unsecured Corporation Bond (10 years)	2,000	0.82%	2015/5/26	2025/5/26
16th Series Unsecured Corporation Bond (10 years)	1,500	0.89%	2015/11/26	2025/11/26
17th Series Unsecured Corporation Bond (10 years)	2,000	0.34%	2016/8/30	2026/8/28
18th Series Unsecured Corporation Bond (10 years)	2,000	0.49%	2017/1/31	2027/1/29
19th Series Unsecured Corporation Bond (10 years)	2,000	0.50%	2017/6/30	2027/6/30
20th Series Unsecured Corporation Bond (5 years) (Green Bond)	3,500	0.25%	2020/11/25	2025/11/25
Total	17,000

Lender	Balance (mn yen)	Rate of interest	Borrowing date	Maturity date
The Bank of Fukuoka	2,000	0.17%	2019/5/31	2026/5/31
The Norinchukin Bank	3,000	0.27%	2019/5/31	2026/5/31
Sumitomo Mitsui Banking Corporation	1,144	0.40%	2019/5/31	2027/11/30
MUFG Bank, Ltd.	3,904	0.30%	2019/5/31	2028/11/30
Mizuho Bank, Ltd.	1,952	0.43%	2019/5/31	2029/5/31
Mizuho Bank, Ltd.	1,000	0.20%	2019/8/30	2025/8/31
The Chugoku Bank, Limited.	1,000	0.22%	2019/8/30	2026/8/31
Resona Bank, Limited.	2,500	0.33%	2019/8/30	2029/8/31
Sumitomo Mitsui Trust Bank, Limited	1,000	0.14%	2019/11/29	2024/11/30
The Norinchukin Bank	600	0.26%	2019/11/29	2026/5/31
MUFG Bank, Ltd.	2,200	0.19%	2019/11/29	2026/11/30
Mizuho Bank, Ltd.	1,100	0.33%	2019/11/29	2027/5/31
Shinsei Bank, Limited	900	0.36%	2019/11/29	2027/11/30
Sumitomo Mitsui Banking Corporation	1,600	0.47%	2019/11/29	2028/5/31
The Bank of Fukuoka	2,000	0.28%	2019/11/29	2028/11/30
Development Bank of Japan Inc.	2,000	0.43%	2019/11/29	2028/11/30
The Chugoku Bank, Limited.	500	0.32%	2020/5/20	2027/5/20
Shinsei Bank, Limited	500	0.38%	2020/5/20	2028/5/20
Nippon Life Insurance Company	1,000	0.48%	2020/5/20	2028/5/20
Mizuho Trust & Banking Co., Ltd.	1,000	0.45%	2020/5/20	2029/5/20
The Bank of Fukuoka	1,000	0.31%	2020/5/20	2030/5/20
The Nishi-Nippon City Bank, Ltd.	1,000	0.57%	2020/5/20	2030/5/20
Sumitomo Mitsui Trust Bank, Limited	834	0.27%	2020/5/29	2025/5/31
MUFG Bank, Ltd.	2,816	0.26%	2020/5/29	2027/5/31
Resona Bank, Limited.	830	0.30%	2020/5/29	2028/5/31
Sumitomo Mitsui Banking Corporation	1,134	0.48%	2020/5/29	2028/11/30
Mizuho Bank, Ltd.	1,408	0.40%	2020/5/29	2029/5/31
Resona Bank, Limited.	1,000	0.24%	2020/8/31	2026/8/31
MUFG Bank, Ltd.	1,400	0.21%	2020/8/31	2027/8/31
Sumitomo Mitsui Banking Corporation	1,400	0.38%	2020/8/31	2028/8/31
Mizuho Bank, Ltd.	1,400	0.36%	2020/8/31	2029/8/31
Sumitomo Mitsui Trust Bank, Limited	960	0.21%	2020/11/30	2025/11/30
MUFG Bank, Ltd.	2,400	0.22%	2020/11/30	2027/11/30
Mizuho Bank, Ltd.	1,200	0.24%	2020/11/30	2027/11/30
Sumitomo Mitsui Banking Corporation	1,440	0.39%	2020/11/30	2028/11/30
Total	167,422

(Note) The interest rates above are the interest rates actually fixed following the conclusion of an interest swap agreement.

Investment corporation bonds

3-9 Unitholders breakdown (as of January 31, 2021)

Unitholders breakdown

＜Number of unitholders＞

＜Number of investment units＞

Other domestic

Financial corporations institutions 1.7%

Top 10 unitholders

Foreign

Rank	Name	Number of units held	Ratio
1	Custody Bank of Japan, Ltd. (Trust account)	424,199	22.1%
2	The Master Trust Bank of Japan, Ltd. (Trust account)	301,227	15.7%
3	Mori Building Co., Ltd.	287,472	15.0%
4	The Nomura Trust & Banking Co., Ltd. (Investment trust account)	74,557	3.9%
5	Custody Bank of Japan, Ltd. (Securities investment trust account)	44,095	2.3%
6	Custody Bank of Japan, Ltd. (Money trust taxable account)	23,874	1.2%
7	STATE STREET BANK WEST CLIENT - TREATY 505234	23,203	1.2%
8	JAPAN SECURITIES FINANCE CO., LTD.	19,146	1.0%
9	LEGAL + GENERAL ASSURANCE PENSIONS MANAGEMENT LIMITED	17,699	0.9%
10	The Gunma Bank, Ltd.	16,986	0.9%
Total of top 10 unitholders	1,232,458	64.3%

4. Business environment recognition & MHR's policy/strategy

Vacancy rates for office buildings in central Tokyo turned upwards while new rents trended down.

(Forecast of Office Market Trends Research Committee for Tokyo's five central wards)

Vacancy rate (forecast): 4.5% in 2021 → 4.5% in 2022Rent index (forecast): 125 in 2021 → 122 in 2022

Cap rates have remained at historically low levels.

(Japan Real Estate Institute's "The Japanese Real Estate Investor Survey")

Class A buildings in Marunouchi

Cap rate: 3.0% in Apr. 2020 → 3.0% in Oct. 2020

Lending attitude toward the real estate industry has temporarily soured but remains at a highly positive level.

Long-term interest rates remain low due to the monetary easing policy, and although the money supply grew significantly amid carrying out countermeasures against COVID-19, the core CPI rate of increase remains at a low level.

10-year bond rates: 0.15% (February 26, 2021)

Core CPI: △0.6% (January 2021)

In the December 2020 preliminary business conditions composite index, the leading index was at 95.3 (△0.8 PT decrease from previous month) and the coincident index was at 88.3 (△0.7 PT decrease from previous month).

While both leading and coincidental indices deteriorated significantly after the spread of COVID-19, these are currently on a recovery trend.

Investors across the world have become more interested in ESG and the amount of funds directed to companies with high ESG evaluation is on the rise.

Global business sentiment deteriorated significantly due to

The office market is expected to remain weak for the time being due to the impact of the proliferation of telecommuting and the downturn in business sentiment.

On the other hand, premium properties in central Tokyo are expected to demonstrate continued competitive advantages even after the proliferation of telecommuting, as these properties can capture office demand by functioning as headquarters.

COVID-19, but is now on a recovery trend due to various policies.

The interest rate level is expected to remain low for a while, but it is necessary to assume an interest rate rise in the medium to long term.

Inflow of funds to companies with high ESG ratings is expected to increase further in the future.

Continues to "MHR's policy/strategy" on the next page

By focusing primarily on premium properties in central Tokyo developed by the sponsor, MHR seeks to maintain highly competitive portfolio quality while further expanding the scale of the portfolio.

By making positive social and environmental contributions, MHR will position itself to benefit from the long-term trend of funds flowing into companies with high ESG ratings and build competitiveness as an investment corporation.

By aiming for a continuous improvement of dividends and NAV per unit, and developing the culture, policies and systems necessary to realize the vision, MHR will continue to foster the trust of unitholders.

4-3 MHR's policy/strategy

Target premium properties in Central Tokyo and aim for annual external growth of approximately 30 billion yen by best utilizing sponsors' pipeline. (Set target yield at the mid 3% range or higher for NOI-based yield and around 3.0% or higher for after-depreciation-based yield.)

Focus on portfolio size expansion in order to further enhance stability and liquidity as an investment corporation while also considering disposition depending on conditions.

Maintain stable revenue through fixed-rent master leases, and aim to continually maintain and improve rent levels at pass-through-type properties.

Properly implement office property repairs as necessary and conduct value-enhancement renovation for residential properties if such is judged to be cost-effective (there are no office properties that require large-scale renewal in terms of building age or competitiveness).

Set the current LTV level (book value basis: in the mid 40% range; appraisal value basis: in the upper 30% range) as the target in order to secure property acquisition capacity while maintaining a durable position for times of economic slowdown.

Target average remaining duration of debt of 4 years or longer, and gradually increase the fixed rate ratio at the appropriate timing.

Contribute to the improvement of various social and environmental issues by positioning ESG initiatives as an integral part of management policy, and steadily implement them in actual management operations leading to improved ESG ratings and stronger competitiveness.

Implement proactive information disclosure through publication of ESG reports organizing various policies and efforts.

Change in rent and vacancy rate of office buildings (Tokyo's five central wards)

200

180

160

140

120

100

2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025

New supply of office buildings (Tokyo's five central wards)

(thousand tsubo)

2007

(%)

10.0

9.0

8.0

7.0

Rent indexVacancy rate

6.0

(Source)

5.0

4.0

Prepared by the Asset Manager based on the "Autumn 2020 Office Rent Forecast in Tokyo, Osaka and Nagoya (2020-2025)" by the Office Market Trends Research Committee

3.0

(Japan Real Estate Institute and Miki Shoji Co., Ltd.).

2.0 (Note)

The rent index targets large and medium

1.0

0.0

buildings (standard floor area of 100 tsubo or more) in Tokyo's five central wards. The rent index is rebased to 100 as of 2010.

(Source)

Prepared by the Asset Manager based on the "Autumn 2020 Office Rent Forecast in Tokyo, Osaka and Nagoya (2020-2025)" by the Office Market Trends Research Committee (Japan Real Estate Institute and Miki Shoji Co., Ltd.).

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Change in rents and vacancy rates of luxury housing (Minato ward)

(yen tsubo)

(%)

Change in number of foreign residents in Minato ward

Avg. rents of Minato ward

Avg. vacancy rates of Minato ward

(Source)

Prepared by the Asset Manager based on Ken Real Estate Investment Advisors' "Ken Residential Market Report" included in real estate appraisal reports by Japan Real Estate Institute regarding properties held by MHR.

(Note)

Data is based on rental housing with monthly rent of 300,000 yen or more or exclusive floor area of 30 tsubo or more.

"Avg. rents of Minato ward" is the contracted rent excluding the management fee.

In the case of years, "Avg. vacancy rates of Minato ward" is the average of the relevant year's January to March, April to June, July to September and October to December figures, and "Avg. rents of Minato ward" is the annual average.

No. of foreigners registered under the

Ministry of Justice

The population of the Basic Resident Register

(Source)

Prepared by the Asset Manager based on "Number of registered foreign residents" prepared by Statistics Division Bureau of General Affairs of Tokyo.

(Note 1)

"Number of foreign residents" was the number of foreigners registered under the Ministry of Justice until 2012. However, as the foreigner registration system was abolished based on revision of the law, the figure is the population of the Basic Resident Register. Therefore, the data may not be consistent.

(Note 2)

Number of foreign residents as of January 1 of each year is used for the year-based figures.

21 01

Change in return on real estate investment

(%) 6.5

6.0

5.5

5.0

4.5

4.0

3.5

3.0

2.5

Oct. 2005

Oct. 2006

Oct. 2007

Oct. 2008

Oct. 2009

Oct. 2010

Oct. 2011

Oct. 2012

Oct. 2013

Oct. 2014

Oct. 2015

Change in real estate transaction amount

Cap rate of class

A office buildings (Marunouchi and Otemachi)Expected cap rate of class

A office buildings (Marunouchi and Otemachi)Expected cap rate of high-end multifamily residences (high-rise)

(Source)

Prepared by the Asset Manager based on

"The Japanese Real Estate Investor Survey" by the Japan Real Estate Institute.

Oct. 2016

Oct. 2017

Oct. 2018

Oct. 2019

Oct. 2020

Lending attitude DI (Real estate industry)

(billion yen)

+ 25

FY 04

FY 05

FY 06

FY 07

FY 08

FY 09

FY 10

FY 11

FY 12

FY 13

FY 14

FY 15

FY 16

FY 17

FY 18

FY 19

1H 20

(Source) Prepared by the Asset Manager based on the "Real Estate Transaction Survey"

(Estimated amount of domestic real estate transactions publicized by listed companies) by the Urban Research Institute.

+ 20

+ 15

+ 10

△5

△ 10

△ 15

△ 20

△ 25

△ 30

△ 35

Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. Mar. 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

(Source) Prepared by the Asset Manager based on "National Short-Term Economic

Survey on Enterprises in Japan" by the Bank of Japan. Difference between the proportion of firms feeling the lending attitude to be accommodative less firms feeling the lending attitude to be restrictive.

Change in 10-year bond interest rates

(%)

1.0

△ 0.1
△ 0.2
△ 0.3
△ 0.4

0.9

0.8

0.7

0.6

0.5

0.4

0.3

0.2

0.1

0.0

Jan. 2013

Jan. 2015

Jul.

Jan. 2014

Jul.

Jan. 2016

Jul.

Jan. 2017

Jul.

Jan. 2018

Jul.

Change in core CPI (Year-on-year comparison)

(%)

+ 2.0
- △ 0.5
- △ 1.0
- △ 1.5
+ 1.5
+ 1.0
+ 0.5
+ 0.0

Jan. 2019

Jul.

Jan. 2020

Jul.

Jan. 2021

(Source)

Prepared by the Asset Manager based on Refinitiv.

Based on figures excluding the direct effects of the consumption tax rate increase

(Source)

Prepared by the Asset Manager based on "Consumer Price Index" by Statistic Bureau, Ministry of Internal Affairs and Communications and "Economic Statistics Monthly" by the Bank of Japan.

(Note)

Figures from April 2014 to April 2015 are derived on "the basis of excluding the direct impact of the consumption tax rate increase" (Bank of Japan's "Economic Statistics Monthly").

Business conditions composite index

110 105 100 95 90 85 80 75 70

Jan. 2013

Jul.

Jan. 2014

Jul.

Jan. 2015

Jul.

Jan. 2016

Jul.

Jan. 2017

Jul.

Jan. 2018

Money stock (M3: year-on-year comparison)

(%)

+7.8

Jul.

Jan. 2019

Jul.

Jan. 2020

JulJan. 2021

+7.2

+6.6

+6.0

+5.4

+4.8

+4.2

+3.6

+3.0

+2.4

+1.8

Leading index

Coincident index

(Source)

Prepared by the Asset Manager based on the "Business Conditions Composite Index" by the Cabinet Office.

(Note)

The index is rebased to 100 as of 2015.

(Source)

Prepared by the Asset Manager based on "Money Stock Statistics" by the Bank of Japan.

Jul.

Jul

Total cash earnings (Year-on-year comparison)

(%)

Jan. 2013

Jul.

Jan. 2014

Jul.

Jan. 2015

Jul.

Jan. 2016

Jul.

Consumer confidence survey

52 47 42 37 32 27 22 17 12

Jan. 2017

Jul.

Jan. 2018

Jul.

Jan. 2019

Jul.

Jan. 2020

JulJan. 2021

Nominal

Real

(Source)

Prepared by the Asset Manager based on "Monthly Labour Survey (establishments with 5 or more employees)" by the Ministry of Health, Labour and Welfare.

Employment

Consumer confidence index

Income growth

(Source)

Prepared by the Asset Manager based on "Consumer Confidence Survey" by the Cabinet Office.

5. Appendix

5-1 Financial highlights

Indices	28th period Period ended Jul. 31, 2020	29th period Period ended Jan. 31, 2021	Calculation formula
Net income	5,433 mn yen	5,575 mn yen
Depreciation and amortization	1,041 mn yen	1,056 mn yen
CAPEX	732 mn yen	240 mn yen
Total assets	392,258 mn yen	402,887 mn yen
Total net assets	195,503 mn yen	200,763 mn yen
Total net assets/unit (BPS)	104,270 yen	104,764 yen	Total net assets/Total units outstanding
Unit price (as of end of each period)	137,100 yen	145,800 yen
Total units outstanding	1,874,960 units	1,916,330 units
Total dividends	5,433 mn yen	5,574 mn yen
Dividends/unit	2,898 yen	2,909 yen
Dividend yield	4.2%	4.0%	Dividends per unit (annualized)/Unit price as of end of period
FFO	6,474 mn yen	6,631 mn yen	Net income + Depreciation and amortization - Gain or loss on sales of real estate properties
FFO/unit	3,453 yen	3,460 yen	FFO/Total units outstanding
Annualized	6,925 yen	6,864 yen	Based on a period of 365 days
FFO multiple	19.8x	21.2x	Unit price as of end of period/FFO per unit (annualized)
PER	23.6x	25.2x	Unit price as of end of period/Net income per unit (average during the periods, annualized)
PBR	1.3x	1.4x	Unit price as of end of period/Net assets per unit
ROA	1.4%	1.4%	Ordinary income/Average of total assets during the period
Annualized	2.8%	2.8%	Based on a period of 365 days
ROE	2.8%	2.8%	Net income/Average of total net assets during the period
Annualized	5.6%	5.6%	Based on a period of 365 days
NAV	274,476 mn yen	282,049 mn yen	Total assets + Total appraisal value - Total book value - Total liabilities
NAV/unit	146,390 yen	147,182 yen
NAV multiple	0.9x	1.0x	Unit price as of end of period/NAV per unit
Interest-bearing debt	179,222 mn yen	184,422 mn yen
LTV (book value basis)	45.7%	45.8%	Interest-bearing debt/Total assets
LTV (appraisal value basis)	38.0%	38.1%	Interest-bearing debt/(Total assets + Total appraisal value - Total book value)
Operating days	182 days	184 days

5-2 Balance sheet

(thousand yen)

28th period Period ended Jul. 31, 2020	29th period Period ended Jan. 31, 2021
Assets
Current assets Cash and deposits Cash and deposits in trust Other	12,270,828	11,504,301
6,575,310	5,479,946
4,984,129	5,340,188
711,388	684,166
Noncurrent assets Property, plant and equipment Intangible assets Investments and other assets	379,918,648	391,282,393
348,266,097	359,704,855
30,650,962	30,650,962
1,001,587	926,574
Deferred assets	68,529	101,047
Total assets	392,258,006	402,887,742

28th period Period ended Jul. 31, 2020	29th period Period ended Jan. 31, 2021
Liabilities
Current liabilities Current portion of investment corporation bonds Current portion of long-term loans payable Other	19,940,732	22,894,889
5,500,000	2,000,000
12,500,000	19,000,000
1,940,732	1,894,889
Noncurrent liabilities	176,813,975	179,229,087
Investment corporation bonds	11,500,000	15,000,000
Long-term loans payable	149,722,000	148,422,000
Lease and guarantee deposited in trust	14,856,183	14,957,614
Other	735,791	849,472
Total liabilities	196,754,707	202,123,976
Net assets
Unitholders' equity Unitholders' capital,net Total surplus Voluntary retained earnings Unappropriated retained earnings	196,212,731	201,612,224
(Note) 190,051,613	(Note) 195,324,850
6,161,117	6,287,373
291,944	291,944
5,869,173	5,995,429
Valuation and translation adjustments Deferred gains or losses on hedges	△ 709,432	△ 848,458
△ 709,432	△ 848,458
Total net assets	195,503,298	200,763,766
Total liabilities and net assets	392,258,006	402,887,742

(Note) Figure after deducting allowance for temporary difference adjustments.

5-3 Income statement

(thousand yen)

28th period Period ended Jul. 31, 2020	29th period Period ended Jan. 31, 2021
Operating revenue	9,602,257	9,820,632
Rent revenues	9,389,038	9,614,085
Other operating revenues	213,218	206,546
Operating expenses	3,573,365	3,646,701
Expenses related to properties	3,251,861	3,315,661
Asset management fee	224,815	229,246
Directors' compensation	4,200	4,200
Asset custody fee	9,805	9,806
Administrative service fees	18,528	18,996
Other operating expenses	64,155	68,791
Operating income	6,028,891	6,173,930
Non-operating income	1,428	995
Interest income	48	54
Gain on forfeiture of unclaimed dividends	1,379	941
Non-operating expenses	595,654	598,798
Interest expenses	370,700	383,400
Interest expenses on investment corporation bonds	61,175	49,526
Amortization of investment corporation bonds issuance cost	9,022	7,757
Borrowing expenses	145,882	143,930
Amortization of investment unit issuance cost	6,952	12,310
Other	1,922	1,873
Ordinary income	5,434,665	5,576,128
Income before income taxes	5,434,665	5,576,128
Net income	5,433,733	5,575,042
Unappropriated retained earnings	5,869,173	5,995,429

Property management fees

1,172,247

Property taxes 736,413

Utilities 116,730

Maintenance and repairs 65,319

Insurance premium 17,877

Custodian fees 5,968

Depreciation

1,056,619

Rent expenses 129,800

Other lease business expenses 14,684

5-4 Statement of cash flows / Retained earnings

Statement of cash flows

(thousand yen)

28th period Period ended Jul. 31, 2020	29th period Period ended Jan. 31, 2021
Net cash provided by (used in) operating activities	6,452,555	6,672,228
Income before income taxes	5,434,665	5,576,128
Depreciation and amortization	1,041,061	1,056,619
Amortization of investment corporation bonds issuance cost	9,022	7,757
Amortization of investment unit issuance cost	6,952	12,310
Interest income	△ 48	△ 54
Gain on forfeiture of unclaimed dividends	△ 1,379	△ 941
Interest expenses	431,875	432,926
Decrease (increase) in accounts receivable	41,003	3,694
Increase (decrease) in accounts payable	△ 65,325	△ 108,707
Increase (decrease) in accrued expenses	△ 46,766	4,902
Increase (decrease) in advances received	△ 10,545	44,479
Increase (decrease) in deposits received	△ 7,595	△ 235
Decrease (increase) in prepaid expenses	16,485	18,878
Decrease (increase) in long-term prepaid expenses	37,110	49,676
Other, net	△ 71	△ 24
Subtotal	6,886,443	7,097,409
Interest income received	48	54
Interest expenses paid	△ 432,597	△ 424,325
Income taxes paid	△ 1,339	△ 909

Net cash provided by (used in) investing activities	△ 595,774	△ 12,383,015
Purchase of property, plant and equipment in trust	△ 693,420	△ 12,478,273
Repayments of lease and guarantee deposited in trust	△ 117,924	△ 364,315
Proceeds from lease and guarantee deposited in trust	215,570	459,574

Retained earnings

28th period Period ended Jul. 31, 2020	29th period Period ended Jan. 31, 2021
Net cash provided by (used in) financing activities	△ 5,404,873	4,971,481
Proceeds from long-term loans payable	12,022,000	11,200,000
Repayments of long-term loans payable	△ 7,022,000	△ 6,000,000
Proceeds from issuance of investment corporation bonds	－	3,479,567
Redemption of investment corporation bonds	△ 5,000,000	△ 3,500,000
Proceeds from issuance of investment units	－	5,225,932
Dividends paid	△ 5,404,873	△ 5,434,018
Net increase (decrease) in cash and cash equivalents	451,906	△ 739,304
Cash and cash equivalents at beginning of the period	11,107,533	11,559,439
Cash and cash equivalents at the end of the period	11,559,439	10,820,134

(yen)

(thousand yen)

28th period	29th period
Period ended Jul. 31, 2020	Period ended Jan. 31, 2021
5,869,173,511	5,995,429,871
－	136,059,430
－	136,059,430
15,151,632	－
15,151,632	－
Ⅳ Amount of Dividends	5,433,634,080	5,574,603,970
Amount of dividends per unit	2,898	2,909
Dividends of earnings	5,433,634,080	5,438,544,540
Dividends of earnings per unit	2,898	2,838
Allowance for temporary difference adjustments	－	(Note) 136,059,430
Dividends in excess of earnings per unit
－	71
(allowance for temporary difference
adjustments)
Ⅴ Retained earnings carried forward	420,387,799	556,885,331

Ⅰ Unappropriated retained earnings

Ⅱ Addition of dividends in excess of earnings

Allowance for temporary difference adjustments

Ⅲ Capitalization

Reversal of allowance for temporary difference adjustments

(Note) Due to consideration of the impact of the items of deduction from net assets (deferred gains or losses on hedges).

(thousand yen)

Property number	O-0	O-1	O-4	O-6
Property name	Roppongi Hills Mori Tower	ARK Mori Building	Koraku Mori Building	Akasaka Tameike Tower
Acquisition price	115,380,000	62,480,000	27,200,000	43,930,000
Period	28th Jul. 2020	29th Jan. 2021	Difference	28th Jul. 2020	29th Jan. 2021	Difference	28th Jul. 2020	29th Jan. 2021	Difference	28th Jul. 2020	29th Jan. 2021	Difference
Operation days	182 days	184 days	2 days	182 days	184 days	2 days	182 days	184 days	2 days	182 days	184 days	2 days
Occupancy rate	100%	100%	0.0PT	100%	100%	0.0PT	86.1%	99.4%	13.3PT	95.7%	94.2%	△ 1.5PT
Avg. Occupancy rate (during period)	100%	100%	0.0PT	100%	100%	0.0PT	96.9%	97.2%	0.3PT	96.4%	94.2%	△ 2.2PT
Number of tenants	1	1	0	1	1	0	22	23	1	135	129	△6
Rent revenues	2,943,450	2,943,450	－	1,351,486	1,351,486	－	644,277	649,547	5,270	791,134	787,242	△ 3,891
Other operating revenues	－	－	－	－	－	－	73,750	73,945	195	78,130	78,054	△ 76
Total property operating revenue	2,943,450	2,943,450	－	1,351,486	1,351,486	－	718,027	723,493	5,465	869,264	865,297	△ 3,967
Property management	447,868	447,868	－	164,853	164,853	－	68,962	94,719	25,756	167,722	175,610	7,887
Property taxes (Note 1)	255,651	263,478	7,826	84,237	84,968	730	32,972	30,774	△ 2,197	43,804	42,321	△ 1,482
Utilities	－	－	－	－	－	－	54,720	55,685	965	26,743	26,094	△ 649
Maintenance and repairs	－	－	－	355	－	△ 355	31,736	10,773	△ 20,963	29,026	45,061	16,034
Insurance premium	4,050	4,094	44	1,912	1,933	21	1,661	1,679	18	2,068	2,092	23
Depreciation (1)	332,052	333,285	1,233	66,946	67,914	968	97,657	97,199	△ 457	135,262	127,520	△ 7,742
Other expenses (Note 2)	376	374	△1	2,789	2,788	△1	83,971	83,953	△ 18	10,624	10,623	△0
Total property operating expenses	1,039,999	1,049,101	9,102	321,094	322,458	1,364	371,681	374,785	3,104	415,253	429,324	14,071
Property operating income (2)	1,903,451	1,894,349	△ 9,102	1,030,392	1,029,028	△ 1,364	346,346	348,707	2,361	454,011	435,972	△ 18,039
NOI (3) ((1)+(2))	2,235,503	2,227,635	△ 7,868	1,097,338	1,096,943	△ 395	444,003	445,907	1,904	589,274	563,492	△ 25,781
Annualized NOI	4,483,290	4,418,949	△ 64,340	2,200,706	2,176,001	△ 24,705	890,446	884,545	△ 5,901	1,181,786	1,117,797	△ 63,988
Annualized NOI/ Acquisition price	3.9%	3.8%	△ 0.1PT	3.5%	3.5%	△ 0.0PT	3.3%	3.3%	△ 0.0PT	2.7%	2.5%	△ 0.2PT
CAPEX (4)	272,162	－	△ 272,162	36,507	59,337	22,829	149,962	62,364	△ 87,598	42,051	45,212	3,160
NCF (3)-(4)	1,963,341	2,227,635	264,293	1,060,830	1,037,605	△ 23,225	294,040	383,543	89,503	547,222	518,280	△ 28,942

(Note 1) For property tax, city planning tax and depreciable assets tax, MHR charges the amount of property taxes assessed and determined applicable to the fiscal period to expenses related to properties. Registered owners of properties in Japan as of January 1 are responsible for paying property taxes for the calendar year based on assessments by local governments. Therefore, registered owners who sold properties to MHR were liable for property taxes for the calendar year, including the period from the date of the acquisition by MHR until the end of the year. MHR reimbursed sellers of properties for the equivalent amount of property taxes and included the amount in the acquisition cost of real estate.

(Note 2) "Other expenses" denotes the sum of custodian fees, rent expenses, and other lease business expenses (residential property management costs, and other property-related miscellaneous expenses) in aggregate.

(Note 3) Property acquired during the relevant period. "Annualized NOI/ Acquisition price" was calculated by taking into consideration the changes in acquisition price during the relevant period.

"Annualized NOI" denotes the value which is based on the acquisition price as of the end of the relevant period.

Property number	O-7	O-8	O-9	O-10
Property name	Atago Green Hills	ARK Hills South Tower	Toranomon Hills Mori Tower	Holland Hills Mori Tower
Acquisition price	42,090,000	19,150,000	48,430,000 (before acquisition 36,210,000)	16,330,000
Period	28th Jul. 2020	29th Jan. 2021	Difference	28th Jul. 2020	29th Jan. 2021	Difference	28th Jul. 2020	29th Jan. 2021	Difference	28th Jul. 2020	29th Jan. 2021	Difference
Operation days	182 days	184 days	2 days	182 days	184 days	2 days	182 days	184 days	2 days	182 days	184 days	2 days
Occupancy rate	100%	100%	0.0PT	100%	94.4%	△ 5.6PT	100%	100%	0.0PT	100%	100%	0.0PT
Avg. Occupancy rate (during period)	100%	100%	0.0PT	99.8%	97.1%	△ 2.7PT	100%	100%	0.0PT	99.4%	100%	0.6PT
Number of tenants	1	1	0	44	43	△1	1	1	0	23	23	0
Rent revenues	1,012,320	1,012,320	－	482,942	475,084	△ 7,857	775,581	995,329	219,748	530,636	537,654	7,017
Other operating revenues	－	－	－	26,518	33,349	6,831	－	－	－	34,819	20,085	△ 14,733
Total property operating revenue	1,012,320	1,012,320	－	509,460	508,434	△ 1,025	775,581	995,329	219,748	565,456	557,739	△ 7,716
Property management	2,664	2,664	－	47,605	45,754	△ 1,850	88,742	113,885	25,143	106,416	100,636	△ 5,780
Property taxes (Note 1)	69,230	69,503	273	35,944	36,025	81	60,874	62,147	1,273	35,604	35,636	32
Utilities	－	－	－	26,486	27,659	1,173	－	－	－	5,380	5,104	△ 276
Maintenance and repairs	－	－	－	2,346	5,226	2,879	－	－	－	1,308	－	△ 1,308
Insurance premium	3,627	3,667	39	1,018	1,030	11	1,305	1,693	387	1,098	1,110	12
Depreciation (1)	185,657	186,107	450	44,245	44,323	78	101,038	126,385	25,346	49,477	45,380	△ 4,096
Other expenses (Note 2)	45,765	46,411	646	2,235	1,593	△ 641	71	92	21	210	209	△1
Total property operating expenses	306,945	308,355	1,410	159,882	161,614	1,731	252,031	304,204	52,173	199,496	188,077	△ 11,418
Property operating income (2)	705,374	703,964	△ 1,410	349,578	346,820	△ 2,757	523,549	691,124	167,574	365,959	369,662	3,702
NOI (3) ((1)+(2))	891,032	890,072	△ 960	393,823	391,144	△ 2,679	624,588	817,509	192,921	415,437	415,042	△ 394
Annualized NOI	1,786,961	1,765,633	△ 21,327	789,811	775,911	△ 13,899	1,252,607	1,693,691	441,083	833,156	823,318	△ 9,838
Annualized NOI/ Acquisition price	4.2%	4.2%	△ 0.1PT	4.1%	4.1%	△ 0.1PT	3.5%	3.5%	0.0PT	5.1%	5.0%	△ 0.1PT
CAPEX (4)	144,950	54,297	△ 90,652	149	3,352	3,203	－	－	－	66,564	6,905	△ 59,658
NCF (3)-(4)	746,081	835,774	89,692	393,674	387,792	△ 5,882	624,588	817,509	192,921	348,872	408,136	59,264

Property number	R-3	R-4	S-1	Portfolio total
Property name	Roppongi First Plaza	Roppongi View Tower	Laforet Harajuku (Land)
Acquisition price	2,100,000	4,000,000	21,820,000	402,910,000 (before acquisition 390,690,000)
Period	28th Jul. 2020	29th Jan. 2021	Difference	28th Jul. 2020	29th Jan. 2021	Difference	28th Jul. 2020	29th Jan. 2021	Difference	28th Jul. 2020	29th Jan. 2021	Difference
Operation days	182 days	184 days	2 days	182 days	184 days	2 days	182 days	184 days	2 days	182 days	184 days	2 days
Occupancy rate	94.6%	96.6%	2.0PT	98.1%	93.1%	△ 5.0PT	100%	100%	0.0PT	98.1%	98.8%	0.7PT
Avg. Occupancy rate (during period)	90.7%	97.3%	6.6PT	97.0%	95.0%	△ 2.0PT	100%	100%	0.0PT	99.0%	98.8%	△ 0.2PT
Number of tenants	40	40	0	90	85	△5	1	1	0	359	348	△ 11
Rent revenues	81,416	87,568	6,152	107,992	106,600	△ 1,392	667,800	667,800	－	9,389,038	9,614,085	225,047
Other operating revenues	－	450	450	－	661	661	－	－	－	213,218	206,546	△ 6,672
Total property operating revenue	81,416	88,018	6,602	107,992	107,261	△ 731	667,800	667,800	－	9,602,257	9,820,632	218,375
Property management	13,880	13,293	△ 587	14,153	12,960	△ 1,193	－	－	－	1,122,870	1,172,247	49,376
Property taxes (Note 1)	8,159	8,376	217	12,387	12,729	341	86,339	90,450	4,111	725,205	736,413	11,207
Utilities	1,231	1,181	△ 49	1,087	1,005	△ 82	－	－	－	115,650	116,730	1,080
Maintenance and repairs	12,316	3,108	△ 9,208	2,208	1,150	△ 1,058	－	－	－	79,298	65,319	△ 13,978
Insurance premium	228	230	2	340	344	3	－	－	－	17,313	17,877	564
Depreciation (1)	11,405	11,424	19	17,318	17,076	△ 241	－	－	－	1,041,061	1,056,619	15,558
Other expenses (Note 2)	3,830	3,818	△ 11	588	588	△0	－	－	－	150,462	150,453	△8
Total property operating expenses	51,051	41,433	△ 9,617	48,086	45,856	△ 2,230	86,339	90,450	4,111	3,251,861	3,315,661	63,800
Property operating income (2)	30,364	46,584	16,220	59,905	61,405	1,499	581,461	577,350	△ 4,111	6,350,396	6,504,970	154,574
NOI (3) ((1)+(2))	41,770	58,009	16,239	77,224	78,482	1,257	581,461	577,350	△ 4,111	7,391,457	7,561,590	170,132
Annualized NOI	83,769	115,073	31,304	154,873	155,684	811	1,166,116	1,145,286	△ 20,830	14,823,527	15,076,934	253,407
Annualized NOI/ Acquisition price	4.0%	5.5%	1.5PT	3.9%	3.9%	0.0PT	5.3%	5.2%	△ 0.1PT	3.8%	3.7%	△ 0.1PT
CAPEX (4)	13,689	1,819	△ 11,869	6,629	7,198	568	－	－	－	732,668	240,488	△ 492,180
NCF (3)-(4)	28,080	56,189	28,109	70,594	71,284	689	581,461	577,350	△ 4,111	6,658,788	7,321,102	662,313

5-8 Unit price performance since IPO

Relative price performance (Since IPO - January 31, 2021)

200

180

160

140

120

100

Nov. 30, Jul. 31,

2006

Jul. 31, 2010

Jul. 31,2007

Jul. 31,2008

Jul. 31,2009

2011

(Source) Prepared by the Asset Manager based on Refinitiv.

(Note)Rebased to 100 as per IPO priceJul. 31,2012

Unit price per period-end (Closing price)

Accounting periodUnit priceAccounting period

1st (January 2007)
2nd (July 2007)
1,100,000 yen11th (January 2012) 1,080,000 yen12th (July 2012)
3rd (January 2008)
4th (July 2008)
716,000 yen13th (January 2013) 465,000 yen14th (July 2013)
5th (January 2009)
265,000 yen15th (January 2014)
6th (July 2009)
7th (January 2010)
352,000 yen16th (July 2014) 264,900 yen17th (January 2015)
8th (July 2010)
177,300 yen
9th (January 2011)
10th (July 2011)

281,000 258,100

yen yen

18th (July 2015)
19th (January 2016)
Unit price
252,200 yen21st (January 2017) 330,500 yen22nd (July 2017) 485,000 yen23rd (January 2018) 548,000 yen24th (July 2018)
135,900 yen25th (January 2019)
151,100 yen26th (July 2019) 166,600 yen27th (January 2020)
145,300 yen28th (July 2020)
20th (July 2016)

152,100 yen29th (January 2021) 160,500 yen

(Note) Implemented a 5-for-1 investment unit split on February 1, 2014 (effective date).

Jul. 31,2013

Jul. 31,2014

Jul. 31,2015

Jul. 31,2016

Jul. 31, 2017

Jul. 31,
2020
(Reference)
IPO Price
(November 30, 2006)	750,000 yen
(Split adjusted)	(150,000 yen)

Jul. 31, 2019

Jul. 31, 2018

5-9 Investment criteria

Investments focusing on Premium Properties for development of urban-type portfolio

Investments focusing on Premium Properties

Among properties that are located in Tokyo's five central wards and in surrounding areas, our investments mainly focus on "Premium Properties" that are able to maintain their competitiveness going forward based on their quality, size and specification.

(Note 1) (Note 2) (Note 3) (Note 4)

Premium PropertiesFlourishing areas of Tokyo's five central wards and their vincityGross floor area of 10,000㎡ or more per-building

Retail facilities

〈Street front luxury brand shops, etc.〉

Exclusive, well-known

retail destinations such as Ginza area, Aoyama area, and Omotesando area

Gross floor area of 1,000㎡ or more per building

Tokyo's five central wards： Minato, Chiyoda, Chuo, Shinjuku and Shibuya ward

Three-A area： Akasaka and Roppongi area, Aoyama and Harajuku area and Azabu and Hiroo area Ratios are based on the acquisition prices

Tokyo Metropolitan Area： Tokyo Metropolis, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture

5-10 Portfolio map (as of January 31, 2021)

(Note 2) Properties are developed, owned, managed and planned for development by Mori Building Group, and there are no properties currently anticipated to be acquired by MHR.

Type

Office building

Office building (Partly residential)

Residential

Retail

Property name

Roppongi

Hills Mori Tower

ARK Mori Building

Koraku Mori

Building

ARK Hills South Tower

Toranomon Hills Mori Tower

Holland Hills Mori Tower

Akasaka Tameike Tower

Atago Green Hills

Roppongi

First Plaza

Roppongi

View Tower

Laforet Harajuku (Land)

MORI Tower

Forest Tower

Plaza

O-0

O-1

O-4

O-8

O-9

O-10

O-6

O-7

R-3

R-4

S-1

Photo

Premium

Location

Roppongi, Minato-ku,

Tokyo

Akasaka, Minato-ku,

Tokyo

Koraku, Bunkyo-ku,

Tokyo

Roppongi, Minato-ku,

Tokyo

Toranomon, Minato-ku,

Tokyo

Toranomon, Minato-ku,

Tokyo

Akasaka, Minato-ku,

Tokyo

Atago, Minato-ku, Tokyo

Toranomon, Minato-ku,

Tokyo

Roppongi, Minato-ku, Tokyo

Jingumae, Shibuya-ku,

Tokyo

Completion

Apr. 2003

Mar. 1986

(Large-scale renovation in 2005)

Mar. 2000

Jul. 2013

May. 2014

Jan. 2005

Sep. 2000

Jul. 2001

Oct. 2001

Jul. 2001

Oct. 1993

−

Building age

17 years 9 months

34 years 10 months

20 years 10 months

7 years 6 month

6 years 8 months

16 years 0 months

20 years 4 months

19 years 6 months

19 years 3 months

19 year 6 months

27 years 3 months

−

Total number of floors

54 above ground, 6 below

37 above ground, 4 below

19 above ground, 6 below

20 above ground, 4 below

52 above ground, 5 below

24 above ground, 2 below

25 above ground, 2 below

42 above ground, 2 below

43 above ground, 4 below

2 above ground, 1 below

20 above ground, 1 below

−

Gross floor area

approx. 442,150㎡

approx. 177,486㎡

approx. 46,154㎡

approx. 53,043㎡

approx. 241,581㎡

approx. 35,076㎡

approx. 46,971㎡

approx. 85,266㎡

approx. 60,815㎡

approx. 2,083㎡

approx. 22,906㎡

−

Owner-ship (Note 1)

Land

Co-ownership (approx. 17.7%)

Co-ownership (approx.10.9%)

Leased

Co-ownership

(25%)

Co-ownership (approx. 17.0%)

Co-ownership (approx. 62.9%)

Co-ownership (approx. 56.4%)

Co-ownership (approx. 28.8%)

Co-ownership

(47%)

Co-ownership

(46%)

Ownership

Building

Compartmentalized ownership

(approx. 13.6%)

Compartmentalized ownership

(approx. 17.9%)

Compartmentalized ownership

(approx. 57.9%)

Co-ownership

(25%)

Co-ownership (approx. 9.3%)

Compartmentalized ownership

(approx. 48.5%)

Compartmentalized ownership

(approx. 65.5%)

Co-ownership (approx. 32.9%)

Compartmentalized ownership

(approx. 46.4%)

Compartmentalized ownership

(approx. 44.7%)

−

PML (Note 2)

0.59%

0.78%

0.73%

1.56%

0.50%

0.85%

1.79%

2.35%

2.34%

5.94%

2.20%

−

Earthquake-resistant feature

(Note 3)

Seismic Damping

−

Acquisition price

(mn yen)

115,380

62,480

27,200

19,150

48,430

16,330

43,930

42,090

2,100

4,000

21,820

Occupancy rate

(Note 4)

100%

99.4%

94.4%

100%

94.2%

100%

96.6%

93.1%

100%

Average building age 19.5 years (Note 5)Portfolio PML 0.91% (Note 2)

Total acquisition price 402,910 mn yen

5-12 Portfolio overview (Note)

(Note 1)	"Type of ownership" denotes the type of rights held by MHR or the Trustee. "Ownership" stands for ownership, "Co-ownership" stands for the ownership of beneficiary interests,
"Compartmentalized ownership" denotes ownership and the rights for exclusive use in or over parts of a building, and "Leased land" denotes Leasehold land. The land site of Atago
Green Hills includes joint ownership in quasi-undivided interests of leasehold land and easement.
(Note 2)	This indicates the figure described in the "Report on evaluation of seismic PML for portfolio" dated July 13, 2020 by Sompo Risk Management Inc.
(Note 3)	ARK Mori Building adopts "slitwall" as an earthquake-resistant feature.
(Note 4)	"Occupancy rate" indicates the figures as of January 31, 2021.
(Note 5)	For calculation of the "Average building age" of Atago Green Hills, we have assumed that construction of the building was completed on July 30, 2001.

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Mori Hills REIT Investment Corporation published this content on 18 March 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 March 2021 06:03:10 UTC.

Latest news about Mori Hills REIT Investment Corporation

Mori Hills REIT Investment Corporation Provides Dividend Guidance for the Thirty Sixth Period Ending July 31, 2024 and Thirty Seventh Period Ending January 31, 2025	Mar. 15	CI
Mori Hills REIT Investment Corporation Provides Earnings Guidance for the Thirty Sixth Fiscal Period Ending July 31, 2024 and Thirty Seventh Fiscal Period Ending January 31, 2025	Mar. 15	CI
Mori Hills REIT Investment Corporation Announces Dividend for the Thirty Fifth Period Ended January 31, 2024, Payable on April 17, 2024	Mar. 15	CI
Mori Hills REIT Sets Interest Rate on 3.52 Billion Yen Loans	Jan. 30	MT
Mori Hills REIT Adjusts Earnings Forecasts, Raises Dividend Following Land Sale	Jan. 10	MT
Mori Hills REIT Files Shelf Registration for 100 Billion Yen Offering of Bonds	Dec. 07	MT
Mori Hills REIT Investment Obtains 3 Billion Yen Loan from Mitsui Sumitomo Insurance to Refinance Existing Debt	Nov. 21	MT
Mori Hills REIT Investment Corporation Announces Information on Borrowings (Including Green Loans)	Nov. 20	CI
Mori Hills REIT Investment Corporation Reports Earnings Results for the Half Year Ended July 31, 2023	23-09-15	CI
Mori Hills Reit Investment Corporation Provides Earnings Guidance for the Thirty Fifth Fiscal Period Ending January 31, 2024 and Thirty Sixth Fiscal Period Ending July 31, 2024	23-09-15	CI
Mori Hills Reit Investment Corporation Provides Dividend Guidance for Period Ending January 31, 2024	23-09-15	CI
Mori Hills Reit Investment Corporation Announces Dividend for Period Ended July 31, 2023, Payable on October 18, 2023; Provides Dividend Guidance for Period Ending July 31, 2024	23-09-15	CI
MHR Announces Information on Borrowings (including Green Loans)	23-08-23	CI
Mori Hills to Sell Part of Tokyo Land for 5.9 Billion Yen	23-03-20	MT
Mori Hills' Half-Year Net Income Slides	23-03-20	MT
Mori Hills REIT Investment Corporation Provides Dividend Guidance for the Fiscal Period Ending July 31, 2023 and January 31, 2024	23-03-17	CI
Mori Hills REIT Investment Corporation Provides Earnings Guidance for the Thirty Fourth Fiscal Period Ending July 31, 2023 and Thirty Fifth Fiscal Period Ending July 31, 2023	23-03-17	CI
Mori Hills Reit Investment Corporation Announces Information on Borrowings	23-03-17	CI
Mori Hills REIT Investment Corporation Announces Dividend for Thirty Second Fiscal Period, Payable on October 14, 2022	22-09-14	CI
Mori Hills REIT Investment Corporation Provides Earnings Guidance for the Thirty Third Fiscal Period Ending January 31, 2023; Provides Earnings Guidance for the Thirty Fourth Fiscal Period Ending July 31, 2023	22-09-14	CI
Mori Hills REIT to Secure $6 Million Refinancing	22-08-25	MT
Mori Hills REIT Investment Corporation Announces Information on Borrowings	22-08-24	CI
Mori Hills REIT Investment Corporation acquired Prime Maison EGOTANOMORI from Sekisui House Asset Management, Ltd.	22-08-01	CI
Mori Hills REIT Investment Corporation agreed to acquire Prime Maison EGOTANOMORI from Sekisui House Asset Management, Ltd. for Ã‘10.5 billion.	22-07-27	CI
Mori Hills REIT Sets Interest Rate on $19 Million Loans	22-05-30	MT

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MORI HILLS REIT INVESTMENT CORPORATION is real estate investment trust (REIT) company. It aims to achieve sustainable growth in asset and stable earnings from mid- to long-term perspectives. The Fund mainly invests in real estate asset like office building, housing and commercial facilities. Its property portfolio includes Roppongi Hills Mori Tower, Ark Mori Building, Roppongi Hills Mori Tower, Ark Mori Building, Koraku Mori Building, Akasaka Tameike Tower, Holland Hills Mori Tower And Roppongi view tower. The asset manager of the Fund is Mori Building Investment Management Co., Ltd.

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2024-07-29 - Ex-dividend day for half-yearly dividend

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INMOBILIARIA COLONIAL SOCIMI, S.A.	-11.15%	3.32B

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Mori Hills REIT Investment Corporation

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3234

JP3046470005

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Mori Hills REIT Investment : Results of the 29th Fiscal Period ended January 31, 2021 Presentation Material

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