Mori Hills REIT Investment : Results of the 30th Fiscal Period ended July 31, 2021 Presentation Material

Mori Hills REIT Investment Corporation

Results of the 30th Fiscal Period ended July 31, 2021

Presentation Material

September 14, 2021

TSE Code： 3234	(Asset Manager) Mori Building Investment Management Co., Ltd.
https://www.mori-hills-reit.co.jp/en/	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)

1

Contents

1. Executive summary
2. Investment highlights

Unit price performance

Financial results

Overview of new acquisition

(Acquired as of August 2, 2021)

Dividends per unit growth record

Strengths of continuous growth in DPU and NAV Increase in appraisal NAV per unit

Forecasts

Highest quality portfolio among all J-REITs External growth

Internal growth Financial management Sustainability initiatives TCFD summary

MHR's representative property

3	3. Operation highlights	41
	Factors that led to changes in dividends per unit
4	from the previous fiscal period	42
Change in assets under management	43
5
Change in unrealized capital gain/loss	44
6
Appraisal value	45
7	Change in the rent and occupancy rates	46
9	Tenant status by month and major tenants	47
10	Financial overview (as of July 31, 2021)	48
11	Debt status (as of July 31, 2021)	49
12	Unitholders breakdown (as of July 31, 2021)	50
13

22 4. Business environment recognition &

25	MHR's policy/strategy	51
29	Business environment recognition	52
31
MHR's policy/strategy	53
33
Market-related information	55
37
	5. Appendix	61

2

1. Executive summary

Financial summary

30th period (Jul. 2021)

External

growth

Internal growth

Financial

management

Operating revenue: 9,841 million yen, operating income: 6,157 million yen,

net income: 5,582 million yen Increased revenue and income period-over-period

DPU: 2,913 yen (+0.1% from 29th period) Increasing for 22 consecutive fiscal periods

NAV per unit: 147,297 yen (+0.1% from 29th period) Increasing for 21 consecutive fiscal periods

As a result of maintaining a high occupancy rate even as office vacancy rates rise in central Tokyo, DPU and NAV per unit continued to increase.

Additionally acquired "Toranomon Hills Mori Tower" (7.8 billion yen) at the beginning of the 31st period.

In the 31st period, although the impact of the contract renewal accompanying a rent decrease for the portfolio's only fixed-rent master lease with a large rent gap is offset by property acquisition, other factors caused a downward revision in income. However this income gap will be covered by the utilization of internal reserves resulting in the DPU forecast (2,910 yen) remaining unchanged.

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, MHR's office occupancy rate for the 30th period maintained a high level of 98.9% due in part to the excellent location and quality of the properties. Regarding rent trends, rent revision saw a slight increase in rent and tenant replacement saw a slight decrease in rent.

The residential occupancy rate for the 30th period was 94.8%, which is roughly the same level as that of the previous period.

The fund procurement environment has not changed despite the COVID-19pandemic. MHR maintained the target level by book value basis LTV 46.0%, appraisal value basis LTV 38.3%, remaining duration of debt 4.5 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%)

Green bonds were issued. (February 2021: 2.0 billion yen, July 2021: 1.8 billion yen)

3

2. Investment highlights

4