Mori Hills REIT Investment : Results of the 31st Fiscal Period ended January 31, 2022 Presentation Material

Mori Hills REIT Investment Corporation

Results of the 31st Fiscal Period ended January 31, 2022

Presentation Material

March 17, 2022

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)

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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

Medium- to long-term

disposition and acquisition policy (model) Increase in appraisal NAV per unit Forecasts

Portfolio of premium properties in central Tokyo External growth

Internal growth Financial management Sustainability initiatives TCFD summary

MHR's representative property

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3.	Operation highlights	43
4	Factors that led to changes in dividends per unit
from the previous fiscal period	44
5
Change in assets under management	45
6
Change in unrealized capital gain/loss	46
7	Appraisal value	47
Change in the rent and occupancy rates	48
9
Tenant status by month and major tenants	49
10	Financial overview (as of January 31, 2022)	50
11	Unitholders breakdown (as of January 31, 2022)	51
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13 4. Business environment recognition &

24	MHR's policy/strategy	52
27
Business environment recognition	53
31
MHR's policy/strategy	54
33
Market-related information	56
35
39	5. Appendix	62

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1. Executive summary

Financial summary

31st period (Jan. 2022)

External

growth

Internal growth

Financial

management

Operating revenue: 9,820 million yen, operating income: 6,085 million yen,

net income: 5,513 million yen Decreased revenue and income period-over-period

DPU: 2,927 yen (+0.5% from 30th period) Increasing for 23 consecutive fiscal periods (Drawdown of reserve

for reduction entry: 50 yen)

NAV per unit: 156,688 yen (+6.4% from 30th period) Increasing for 22 consecutive fiscal periods

The impact of the contract renewal accompanying a rent decrease for the portfolio's only fixed-rent master lease with a large rent gap and the decrease in occupancy rates for pass-through-type properties was offset by the property acquisition and the utilization of internal reserves, resulting in continued consecutive increase in dividends.

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

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 31st period maintained a high level of 98.0% due in part to the excellent location and quality of the properties.

Although the occupancy rates and rents for some of the pass-through type offices were weaker, those properties account for only a small portion of the entire portfolio and thus the impact has been limited.

The residential occupancy rate for the 31st period was 94.8%, which is the same level as that of the previous period.

The fund procurement environment has not changed despite the COVID-19 pandemic. MHR maintained the target level by book value basis LTV: 46.8%, appraisal value basis LTV: 37.7%, remaining duration of debt: 4.6 years.

Green bonds were issued. (November 2021: 1.5 billion yen)

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2. Investment highlights

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