MORI TRUST Sogo Reit : Financial Summary for the 37th Period (September 2020)

November 18, 2020 at 05:37 am EST

November 18, 2020

Issuer of Real Estate Investment Trust Securities

MORI TRUST Sogo Reit, Inc.

4-3-1 Toranomon, Minato-ku, Tokyo

Masayuki Yagi,

Executive Director (TSE code 8961)

Asset Management Company:

MORI TRUST Asset Management Co., Ltd. Michio Yamamoto

President and Representative Director Contact:

Hiroshi Naito

General Manager, Strategic Management Department,

Sogo REIT Management Division

Phone: +81-3-6435-7011

MTR Announces Financial Results

for the Fiscal Period Ended September 30, 2020

Tokyo, November 18, 2020 - Mori Trust Sogo Reit, Inc. (MTR) has announced financial results for the fiscal period ended September 30, 2020 (from April 1, 2020 to September 30, 2020).

1. Operational/Asset Conditions for the fiscal period ended September 30, 2020 (from April 1, 2020 to September 30, 2020)

					(Amounts are rounded down to the nearest million yen)
(1) Operating results					(% shows change vs. previous period)

	Operating Revenues	Operating Income	Ordinary Income		Profit

Fiscal period ended	Millions of yen	%	Millions of yen		%	Millions of yen		%	Millions of yen	%
8,882	0.1	5,437		0.7	5,059		1.3	5,058	1.3
September 30, 2020

Fiscal period ended	8,869	0.4	5,398		1.1	4,996		2.0	4,995	2.0
March 31, 2020


	Basic earnings per unit	Rate of return		Ordinary income to total	Ordinary income to
	on equity		assets ratio		operating revenues ratio

Fiscal period ended		Yen			%			%		%
	3,832			3.2			1.5		57.0
September 30, 2020

Fiscal period ended		3,784			3.1			1.5		56.3
March 31, 2020

Disclaimer:

This English language document is provided as a service and is not intended to be an official statement. Should a discrepancy be found, the Japanese original will always govern the meaning and interpretation.

(2) Distributions

	Distributions per	Total Distributions	Distributions in	Total distributions	Payout	Ratio of
	unit (excluding	(excluding total
	excess of profit	distributions to
	distributions in	distributions in	per unit	in excess of profit	Ratio	net assets
	excess of profit)	excess of profit)

Fiscal period ended	Yen	Millions of yen	Yen	Millions of yen	%	%
3,832	5,058	−	−	100.0	3.2
September 30, 2020
Fiscal period ended	3,785	4,996	−	−	100.0	3.1
March 31, 2020

(Note) The payout ratio is rounded down to one decimal place.

(3) Financial positions

	Total assets	Net assets	Capital adequacy ratio	Net assets per unit

Fiscal period ended	Millions of yen	Millions of yen	%	Yen
328,915	160,123	48.7	121,305
September 30, 2020

Fiscal period ended	329,302	160,060	48.6	121,258
March 31, 2020

(4) Cash flows

	Cash flows	Cash flows	Cash flows	Cash and equivalents,
	from operating activities	from investing activities	from financing activities	end of period

Fiscal period ended	Millions of yen	Millions of yen	Millions of yen	Millions of yen
6,082	(584)	(4,996)	22,281
September 30, 2020

Fiscal period ended	6,457	(9)	(4,914)	21,780
March 31, 2020

2. Forecast for the March 2021 period (October 1, 2020 to March 31, 2021) and the September 2021 period (April 1, 2021 to September 30, 2021)

(% shows change vs. previous period)

			Operating	Ordinary				Distributions per	Distributions
	Operating revenues	Profit		unit (excluding
	income	income		distributions in	in excess of
						profit per unit
										excess of profit)
	Millions of		Millions of		Millions of		Millions of
Fiscal period ending	yen	%	yen	%	yen	%	yen		%	Yen	Yen
8,801	(0.9)	5,408	(0.5)	5,045	(0.3)	5,044		(0.3)	3,822	0
March 31, 2021

Fiscal period ending	7,663	(12.9)	4,012	(25.8)	3,637	(27.9)	3,738		(25.9)	3,000	0
September 30, 2021

(Reference) The profit per unit forecast is ¥3,821 for the fiscal period ending March 31, 2021 and ¥2,832 for the fiscal period ending September 30, 2021.

(Note) The distribution per unit for the fiscal period ending September 30, 2021 is calculated based on the assumption that part of the reserve for reduction entry (¥221 million) will be reversed for distributions.

Disclaimer:

3. Status of Asset Management

Summary of results for the current fiscal period

Transition of the Investment Corporation

The Investment Corporation was established on October 2, 2001, with Mori Trust Asset Management Co., Ltd. (changed trade name from Nihon Sogo Fund Co., Ltd.. on November 1, 2003) as the organizer, pursuant to the Act on Investment Trusts and Investment Corporations.

On March 28, 2002, the Investment Corporation began asset management, starting with the acquisition of the trust beneficiary right in Frespo Inage, land related to leased land agreement for business use.

Since then the Investment Corporation has steadily expanded the size of its assets, and was listed on the Real Estate Investment Trust Securities Market of the Tokyo Stock Exchange (Stock Code: 8961).

As a result, the real estate held by the Investment Corporation as of September 30, 2020, numbered 15 properties, with a total assets price of ¥328,915 million.

Investment environment and performance

During the fiscal period under review, the Japanese economy deteriorated sharply, reflecting the impact from the issuance of a declaration of a state of emergency on the back of the spread of the COVID-19 pandemic and overseas economic slowdown. However, personal consumption showed improvements in tandem with the rapid progress of movements to resume business and reduce voluntary restraint after the state of emergency was lifted, as well as the special fixed amount cash handouts.

In the real estate investment market, although transaction volume was on a downward trend due to the effects of the spread of COVID-19 infections, transaction prices remained at a high level, attributable to continuously strong investment demand.

In the real estate leasing market, the vacancy rate for office buildings showed an upward trend, as a result of concerns over business prospects associated with the spread of the COVID-19 infection and movements to cancel lease agreements and reduce floor area among tenants who introduced telework.

In the market for commercial facilities, sales at retail stores and restaurants recorded a sharp fall in year-on-year terms because of voluntary restraint of operations due to COVID-19, while no material impact was seen on sales at food supermarkets, etc., thanks to rising consumption from staying at home and demand for eating at home among people who practiced self-restraint on going out.

In the market for luxury rental housing in Tokyo, steady demand kept the occupancy rate and the rent level firm amid limited supply.

Looking at market conditions for hotels, the spread of COVID-19 infections caused the number of inbound and outbound tourists to decrease significantly and hotel business results appear to have been severely hit.

Under these investment conditions, the Investment Corporation continued to conduct investment management by maintaining and improving the occupancy rate of portfolio properties and promoting upward rent revisions, with the aim of securing stable revenues.

As a result, as of September 30, 2020, the Investment Corporation owned 15 properties with a total book value of ¥306,254 million. The occupancy rate for the properties owned by the Investment Corporation was 99.9% (99.9% (Note)) as of September 30, 2020.

(Note) The figure in parentheses is the occupancy rate calculated based on sublease agreements for properties using a master lease agreement under which rent income is linked to rents under sublease agreements or a pass-through master lease agreement.

(iii) Financing

In the fiscal period under review, the Investment Corporation borrowed a total of ¥17,000 million to apply the amount to the repayment of existing loans that became due.

As a result, interest-bearing debt as of September 30, 2020 amounted to ¥155,000 million, of which long-term loans payable amounted to ¥130,000 million (including long-term loans payable of ¥22,500 million due for repayment within 1 year) and investment corporation bonds amounted to ¥12,000 million (including investment corporation bonds of ¥3,000 million due for redemption within 1 year). The ratio of interest-bearing debt to total assets as of September 30, 2020 was 47.1% (compared

Disclaimer:

with 47.1% as of March 31, 2020).

As of September 30, 2020, the Investment Corporation has obtained a long-term issuer rating of AA (rating outlook: stable) from Japan Credit Rating Agency, Ltd. (JCR)

(iv) Overview of financial results and distributions

As a result of the abovementioned operations, operating revenue came to ¥8,882 million, operating income came to ¥5,437 million, ordinary income after the deduction of loan-related interest expenses from operating income came to ¥5,059 million, and profit came to ¥5,058 million.

With the intention that the maximum amount of profit distributions would be included in tax-deductible expenses under the application of special provisions for taxation (Article 67-15 of the Act on Special Measures Concerning Taxation), the Investment Corporation decided to distribute all of the undistributed profit at the end of the fiscal period, with the exception of a fraction of less than ¥1 of distributions per unit. Consequently, the distribution per investment unit amounted to ¥3,832.

(b) Outlook for the next fiscal period

Outlook for overall performance

Going forward, the Japanese economy is expected to make a gradual recovery starting with the resumption of economic activity. Given the continuing effects of the spread of the COVID-19 infection around the world, however, the pace of recovery will likely be muted.

In the real estate investment market, cap rates will remain low for the time being, attributable to continued strength in demand from investors. However, as there may be changes in economic conditions due to the effect of the spread of COVID-19 infections, moves by investors will need to be monitored.

In the real estate leasing market, for office buildings, the spread of COVID-19 infections is expected to cause a rise in the vacancy rate and a fall in rents, while the occupancy rate of well-located office buildings will likely be maintained at a certain level.

In the markets for commercial facilities and hotels, conditions will remain challenging due to the decline in the number of foreign customers to Japan caused by the spread of COVID-19. However, domestic demand is expected to recover gradually thanks to various government policies.

In the market for luxury rental housing in Tokyo, the occupancy rate and rent levels are likely to remain firm, backed by a steady supply and demand environment.

Disclaimer:

(ii) Future investment policy

Regarding the form of lease agreements of the real estate owned by the Investment Corporation, the Investment Corporation will maintain the weight of fixed-term building lease agreements with fixed rent over the medium and long term at a certain percentage, to ensure that a drop in the level of market rents does not immediately have a major impact on the revenue of the real estate owned by the Investment Corporation.

However, when entering into a new lease agreement, the Investment Corporation will examine the agreement term and the fixing of rents in the medium or long term based on an assessment of the location and features of the real estate and will aim to maximize revenue.

In addition, the Investment Corporation will operate and manage real estate in accordance with the following policy to maintain and increase market competitiveness and to enable stable operation.

The Investment Corporation will work to improve the satisfaction of tenants and consider measures such as thoroughgoing implementation of preventive maintenance and safety management and enhancement of customer relations with tenants based on an assessment of the features of each portfolio real estate, and endeavor to maintain high occupancy rates of the real estate it owns. When real estate becomes vacant or is due to become vacant, the Investment Corporation will conduct well-aimed market research and then focus on leasing in cooperation with the Mori Trust Group, real estate agents and property management companies.
When entering into a new lease agreement, the Investment Corporation will endeavor to conclude a medium- or long-termfixed-term building lease agreement or an agreement that otherwise considers fixing the rent or lengthening the agreement term to ensure future rental revenue. In the case of portfolio real estate that can be expected to achieve stable internal growth, the Investment Corporation will also incorporate agreements designed to tap into growth in income gain.
Based on consideration of the aging and age of portfolio real estate, the Investment Corporation will endeavor to maintain stable occupancy rates by renovating aged facilities, etc. and actively making investments to increase market competitiveness so that portfolio real estate compares favorably with competing properties.

Investment strategy for new investment real estate

The Investment Corporation's basic policy is to make investments based on the following investment strategies, with a focus on seeking to further develop and cultivate property information routes and endeavoring to gather high quality property information, to expand the size of its assets under management (AUM) and acquire new investment real estate.

The Investment Corporation will invest primarily in real estate in central Tokyo regardless of its use, aiming for an investment portfolio in which central Tokyo properties account for 60 -80% of total AUM. It will also invest in certain investment real estate located in other regions, such as office buildings located in areas with a high concentration of office buildings and convenient transport links and high-quality commercial facilities that are highly competitive within their trade area.
The Investment Corporation will invest in investment real estate intended for "office building" use, aiming to build a portfolio in which office buildings account for 70-90% of total AUM. Besides office buildings, it will also invest in commercial facilities (10-30% of total AUM) and "Others" (0-10% of total AUM). However, for the present time, it will invest only in residential properties and hotels in the "others" category.

３．The Investment Corporation's basic strategy is to conclude medium-to-long-term lease agreements with tenants. Also, where possible, it will endeavor to conclude fixed-term building lease agreements or other agreements that take fixing the rent or lengthening the agreement period into consideration. The agreement for the lease of investment real estate may take the form of leasing the investment real estate directly to the tenant or the form of using a master lessee as an intermediary between the Investment Corporation and tenants and leasing to the master lessee. The Investment Corporation will actively examine a master lease agreement in cases where, upon consideration of factors such as the size and use of the real estate and the characteristics of tenants, this arrangement is deemed to have certain benefits.

(iv) Financial strategy, etc.

The Investment Corporation will examine points such as the amounts of loans, borrowing periods and the fixation of interest rates, and work to arrive at the optimum financing balance, bearing in mind the need to curb the negative effects of changes in financing conditions and reduce financing costs. The Investment Corporation will also consider issuing investment corporation bonds.

Disclaimer:

When selecting finance providers, the Investment Corporation will negotiate with a number of eligible financial institutions and compare the terms offered before making a decision.

(v) Significant events after balance sheet date

Not applicable

(vi) Forecasts of performance

The Investment Corporation forecasts that performance in the next fiscal period the fiscal period ending March 2021 period (October 1, 2020 to March 31, 2021) will be as follows. Assuming that the assumptions of forecasts of performance are correct, performance forecasts for the fiscal period ending September 30, 2021(from April 1, 2021 to September 30, 2021) are as follows.

Please refer to "Assumptions for Forecasts of Performance for the fiscal period ending March 31, 2021 (from October 1, 2020 to March 31, 2021) and the fiscal period ending September 30, 2021 (from April 1, 2021 to September 30, 2021)" below for further details of the assumptions of forecasts of performance.

	he fiscal period ending	the fiscal period ending
	March 31, 2021	September 30, 2021

Operating revenues	¥8,801 million	¥7,663 million

Operating income	¥5,408 million	¥4,012 million

Ordinary income	¥5,045 million	¥3,637 million

Profit	¥5,044 million	¥3,738 million

Distribution per unit	¥3,822	¥3,000

(Note1 ) The above forecasts are based on certain assumptions and information currently available and are not a guarantee of actual operating revenues, operating income, ordinary income, profit, and distribution per unit, and such may differ according to circumstances occurring in the future.

(Note2 ) The distributions per unit for the fiscal period ending September 30, 2021 is based on the assumption of internal reserves reduction.

Assumptions for Forecasts of Performance for the Fiscal Period ending March 31, 2021 (from October 1, 2020 to March 31, 2021) and the Fiscal Period ending September 30, 2021 (from April 1, 2021 to September 30, 2021)

Item	Assumptions
Portfolio properties	・We assume that a total of 15 properties will be under management as of September 30, 2020.
・The actual portfolio may change due to the acquisition or disposal/transfer of other properties.

Number of investment	・We assume 1,320,000 investment units issued and outstanding as of September 30, 2020. The number of
units issued and	investment issued and outstanding may change, however, for reasons such as the issuance of
outstanding	investment units during the fiscal period.

	・Interest-bearing debt amounted to ¥155,000 million as of September 30, 2020.
	・Concerning the repayment of loans payable of ¥16,500 million and the redemption of investment
Interest-bearing debt	corporation bonds of ¥3,000 million that will fall due during the fiscal period ending March 31, 2021,
we assume the application of funds raised through refinancing and the issuance of investment
and refinancing
corporation bonds. Concerning the repayment of loans payable of ¥19,000 million that will fall due

	during the fiscal period ending September 30, 2021, we assume the application of funds raised through
	refinancing.

	・Concerning leasing business revenues, we take factors such as tenant movements into consideration.
	・We assume that there will be no delayed payment or non-payment by tenants.
Operating revenue	・In the fiscal period ending September 30, 2021, revenues from the office and retail portions of the Tokyo
	Shiodome Building will be rental revenues linked with rents under sublease agreements, based on the
	assumption of rents under sublease agreements that are currently in effect.

Disclaimer:

	・Concerning fixed property tax, city planning tax, depreciated asset tax, etc. for owned real estate in trust,
	the portion of the tax amount to be levied that corresponds to the relevant calculation period is
	recorded as leasing business expenses. However, the amount equivalent to fixed property tax, city
	planning tax, etc. for the fiscal year of acquisition reimbursed to the previous owner at the time of
	acquisition of the real estate, etc. is included in the cost of acquisition of the relevant real estate and is
	thus not recognized as expenses in the relevant calculation period.
	・Concerning repair expenses, the estimated amount required is recorded as expenses. However, the actual
	repair expenses may significantly differ from the estimates since (i) an unforeseeable event may cause
	damage to a building requiring emergency repair expenditure, (ii) in general, amounts vary according
Operating expenses	to the fiscal period, and (iii) certain types of repair and maintenance expenses are not required in every
fiscal period.

	・We estimate property and other taxes of ¥964 million for the fiscal period ending March 31, 2021 and
	¥1,005 million for the fiscal period ending September 30, 2021 fiscal period.
	・We estimate property management fees of ¥426 million for the fiscal period ending March 31, 2021 and
	¥716 million for the fiscal period ending September 30, 2021.
	・We estimate depreciation of ¥1,128 million for the fiscal period ending March 31, 2021 and ¥1,116
	million for the fiscal period ending September 30, 2021.
	・We estimate operations expenses other than leasing business expenses (asset management fees, fees for
	the custody of assets, administrative service fees, etc.) of ¥446 million for the fiscal period ending
	March 31, 2021 and ¥439 million for the fiscal period ending September 30, 2021.

Non-operating	・We estimate non-operating expenses (loan interest, investment corporation bond interest, etc.) of ¥362
million for the fiscal period ending March 31, 2021 and ¥374 million for the fiscal period ending
expenses
September 30, 2021.

	・Distributions (distribution per unit) are calculated based on the cash distribution policy set out in the
	Investment Corporation's Articles of Incorporation.
	・On calculation of the distribution for the fiscal period ending September 30, 2021, we assume that a
	portion worth ¥323 million (reserve for reduction entry of ¥221 million and relevant deferred tax
	liabilities of ¥101 million）of the internal reserves totaling ¥1,567 million (the total of reserve for
Distributions	reduction entry of ¥1,074 million and relevant deferred tax liabilities of ¥493 million) accumulated
until the fiscal period ending March 31, 2021, under the application of the "Special Provisions for

	Taxation in the case of Advanced Acquisition of Land, etc. in 2009 and 2010" will finance the
	distributions.
	・Distributions per unit may change due to a variety of factors, including changes in the assets under
	investment and changes in rental income as a result of changes in tenants, the occurrence of unforeseen
	repairs, fluctuation in the number of issued investment units and financing.

Distributions in excess	・We currently have no plans to pay cash distributions in excess of earnings (distributions in excess of
of earnings per unit	earnings per unit).

	・Our forecasts assume no revisions that impact on the above projections will be made to laws and
Others	regulations, tax systems, accounting standards, securities listing regulations and the rules of The
	Investment Trusts Association, Japan, or others.

Disclaimer:

4. FINANCIAL STATEMENTS

(1) Balance Sheets

			Thousands of yen
		As of March 31, 2020	As of September 30, 2020

Assets
Current assets

Cash and deposits	18,802,219	19,446,362
Cash and deposits in trust	2,977,817	2,835,490

Operating accounts receivable	50,066	249,460
Accounts receivable - other	10,642	-
Prepaid expenses	34,537	71,739
Other	4,213	685

Total current assets	21,879,495	22,603,738
Non-current assets
Property, plant and equipment
Buildings	40,275,524	40,393,268
	Accumulated depreciation	(18,241,656)	(18,999,215)
	Buildings, net	22,033,867	21,394,053

Structures	571,395	571,395
	Accumulated depreciation	(531,310)	(531,981)

	Structures, net	40,084	39,414
Machinery and equipment	152,086	152,086

	Accumulated depreciation	(115,664)	(117,834)
	Machinery and equipment, net	36,421	34,251

Tools, furniture and fixtures	103,633	104,935
	Accumulated depreciation	(74,426)	(77,296)
	Tools, furniture and fixtures, net	29,207	27,639
Land	136,672,529	136,672,529

Buildings in trust	28,002,980	28,087,602
	Accumulated depreciation	(10,467,369)	(11,006,973)

	Buildings in trust, net	17,535,611	17,080,629
Structures in trust	125,153	125,323

	Accumulated depreciation	(102,688)	(104,090)
	Structures in trust, net	22,464	21,233
Machinery and equipment in trust	7,693	7,693
	Accumulated depreciation	(3,020)	(3,264)

	Machinery and equipment in trust, net	4,673	4,429
Tools, furniture and fixtures in trust	81,051	94,007
	Accumulated depreciation	(49,448)	(53,549)
	Tools, furniture and fixtures in trust, net	31,602	40,458
Land in trust	130,939,930	130,939,930
Total property, plant and equipment	307,346,392	306,254,568
Intangible assets
Other	240	240
Total intangible assets	240	240

Investments and other assets

Disclaimer:

				Thousands of yen
			As of March 31, 2020	As of September 30, 2020

		Guarantee deposits	10,000	10,000

		Long-term prepaid expenses	17,683	6,622
		Other	3,602	3,602

		Total investments and other assets	31,285	20,225
	Total non-current assets	307,377,918	306,275,033
Deferred assets
	Investment corporation bond issuance costs	45,461	36,481

	Total deferred assets	45,461	36,481
Total assets	329,302,876	328,915,253
Liabilities
Current liabilities

	Operating accounts payable	247,690	174,498

	Short-term loans payable	10,500,000	13,000,000

	Current portion of investment corporation bonds	3,000,000	3,000,000

	Current portion of long-term loans payable	23,000,000	22,500,000

	Accounts payable - other	550,927	143,117

	Accrued expenses	459,108	447,663

	Dividends payable	9,206	8,691

	Income taxes payable	606	947

	Accrued consumption taxes	324,346	283,190

	Advances received	1,505,216	1,519,814

	Deposits received	1,619	322

	Total current liabilities	39,598,721	41,078,244
Non-current liabilities
	Investment corporation bonds	9,000,000	9,000,000
	Long-term loans payable	109,500,000	107,500,000
	Tenant leasehold and security deposits	9,747,760	9,809,617
	Tenant leasehold and security deposits in trust	902,342	911,177
	Deferred tax liabilities	493,173	493,156
	Total non-current liabilities	129,643,276	127,713,950
Total liabilities	169,241,998	168,792,195
Net assets
Unitholders' equity
	Unitholders' capital	153,990,040	153,990,040
	Surplus
		Voluntary retained earnings
		Reserve for reduction entry	1,074,447	1,074,447
		Total voluntary retained earnings	1,074,447	1,074,447
		Unappropriated retained earnings	4,996,390	5,058,569
		Total surplus	6,070,837	6,133,017
	Total unitholders' equity	160,060,877	160,123,057

Total net assets	160,060,877	160,123,057
Total liabilities and net assets	329,302,876	328,915,253

The accompanying notes form an integral part of these financial statements.

Disclaimer:

(2) Statement of income

For the six-month period ended March 31, 2020 and September 30, 2020

		Thousands of yen
	For the period	For the period
	from October 1, 2019	from April 1, 2020
	to March 31, 2020	to September 30, 2020
Operating revenue
Lease business revenue	8,574,620	8,613,153

Other lease business revenue	294,696	269,397

Total operating revenue	8,869,317	8,882,550
Operating expenses
Expenses related to rent business	3,013,543	2,991,735
Asset management fee	348,561	341,890

Asset custody fee	13,104	13,111
Administrative service fees	47,193	47,919

Directors' compensations	3,600	3,600
Other operating expenses	45,256	47,105

Total operating expenses	3,471,259	3,445,361

Operating income	5,398,058	5,437,189
Non-operating income
Interest income	97	103

Reversal of dividends payable	961	1,264
Insurance income	10,642	221

Total non-operating income	11,701	1,589

Non-operating expenses
Interest expenses	383,678	355,373
Interest expenses on investment corporation bonds	12,405	13,985

Amortization of investment corporation bond	9,023	8,980
issuance costs

other	8,334	1,112
Total non-operating expenses	413,442	379,452

Ordinary income	4,996,317	5,059,326
Profit before income taxes	4,996,317	5,059,326
Income taxes - current	620	962

Income taxes - deferred	20	(16)
Total income taxes	641	946
Profit	4,995,675	5,058,379
Retained earnings at beginning of period	714	190

Unappropriated retained earnings	4,996,390	5,058,569

The accompanying notes form an integral part of these financial statements.

Disclaimer:

(3) Statement of changes in Net Assets

For the six-month period from October 1, 2019 to March 31, 2020

Thousands of yen

						Unitholders' equity

						Surplus
				Unitholders'					Total unitholders'	Total net assets
				Voluntary retained earnings	Unappropriated
				capital			retained earnings	Total surplus	equity
				Reserve for	Total voluntary

					reduction entry	retained earnings	(undisposed loss)

Balance at beginning of	153,990,040	1,072,409	1,072,409	4,898,632	5,971,042	159,961,082	159,961,082
current period

Changes of items	during
period
Provision of reserve for		2,037	2,037	(2,037)	―	―	―
reduction entry

Dividends of surplus				(4,895,880)	(4,895,880)	(4,895,880)	(4,895,880)

Profit						4,995,675	4,995,675	4,995,675	4,995,675

Total	changes	of	items	―	2,037	2,037	97,757	99,795	99,795	99,795
during period

Balance at end of current	153,990,040	1,074,447	1,074,447	4,996,390	6,070,837	160,060,877	160,060,877
period

The accompanying notes form an integral part of these financial statements.
For the six-month period from April 1, 2020 to September 30, 2020
									Thousands of yen

						Unitholders' equity

						Surplus
				Unitholders'					Total unitholders'	Total net assets
				Voluntary retained earnings	Unappropriated
				capital			retained earnings	Total surplus	equity
				Reserve for	Total voluntary

					reduction entry	retained earnings	(undisposed loss)

Balance at beginning of	153,990,040	1,074,447	1,074,447	4,996,390	6,070,837	160,060,877	160,060,877
current period

Changes of items	during
period
Dividends of surplus				(4,996,200)	(4,996,200)	(4,996,200)	(4,996,200)

Profit						5,058,379	5,058,379	5,058,379	5,058,379

Total	changes	of	items	―	―	―	62,179	62,179	62,179	62,179
during period

Balance at end of current	153,990,040	1,074,447	1,074,447	5,058,569	6,133,017	160,123,057	160,123,057
period

The accompanying notes form an integral part of these financial statements.

Disclaimer:

(4) Statement of Cash Distributions

For the six-month period from April 1, 2020 to September 30, 2020

		(Unit: yen)

	The Fiscal Period ended	The Fiscal Period ended
	March 31, 2020	September 30, 2020
	(October 1, 2019 to March 31, 2020)	(April 1, 2020 to September 30, 2020
I. Unappropriated retained earnings	4,996,390,036	5,058,569,966
II. Distribution amount	4,996,200,000	5,058,240,000
(Distribution amount per unit)	(3,785)	(3,832)

Ⅲ. Retained earnings carried forward	190,036	329,966
Calculation method of distribution	In accordance with Paragraph 1,	In accordance with Paragraph 1,
amount	Article 29 of the Investment	Article 29 of the Investment
	Corporation's Articles of Incorporation,	Corporation's Articles of Incorporation,
	MTR decided to distribute	MTR decided to distribute
	4,996,200,000 yen, which is the	5,058,240,000 yen, which is the
	maximum value of the integral multiple	maximum value of the integral multiple
	of the total number of units issued and	of the total number of units issued and
	outstanding (1,320,000 units), not	outstanding (1,320,000 units), not
	exceeding unappropriated retained	exceeding unappropriated retained
	earnings.	earnings.
	In addition, MTR does not distribute	In addition, MTR does not distribute
	dividends in excess of accounting profit	dividends in excess of accounting profit
	as set forth in Paragraph 2, Article 29 of	as set forth in Paragraph 2, Article 29 of
	the Investment Corporation's Articles of	the Investment Corporation's Articles of
	Incorporation.	Incorporation.

Disclaimer:

(5) Statement of cash flows

For the six-month period from April 1, 2020 to September 30, 2020

				Thousands of yen
			For the period	For the period
			from October 1, 2019	from April 1, 2020
			to March 31, 2020	to September 30, 2020
Cash flows from operating activities

	Profit before income taxes	4,996,317	5,059,326

	Depreciation		1,292,269	1,308,619

	Amortization of investment corporation bond issuance	9,023	8,980
	costs

	Interest income		(97)	(103)

	Interest expenses	396,084	369,359
	Decrease (Increase) in operating accounts receivable		2,154	(199,394)

	Increase (Decrease) in operating accounts payable	19,413	(42,915)
	Increase (Decrease) in accrued consumption taxes		152,119	(41,156)

	Increase (Decrease) in advances received	12,280	14,597
	Other, net		5,685	(20,148)

	Subtotal		6,885,250	6,457,165

	Interest income received		97	103

	Interest expenses paid	(427,023)	(373,925)
	Income taxes paid		(1,043)	(621)

	Net cash provided by operating activities		6,457,281	6,082,720
Cash flows from investing activities
	Purchase of property, plant and equipment	(32,240)	(157,457)

	Purchase of property, plant and equipment in trust		(129,018)	(467,146)

	Repayments of tenant leasehold and security deposits	(8,518)	(52,452)

	Proceeds from tenant leasehold and security deposits		156,252	81,467

	Repayments of tenant leasehold and security deposits in	(14,961)	(6,462)
	trust

	Proceeds from tenant leasehold and security deposits in		18,536	17,860
	trust

	Net cash used in investing activities		(9,951)	(584,189)

Cash flows from financing activities
	Net increase (decrease) in short-term loans payable		5,500,000	2,500,000
	Proceeds from long-term loans payable		15,000,000	10,000,000
	Repayments of long-term loans payable		(20,500,000)	(12,500,000)

	Proceeds from issuance of investment corporation bonds	4,000,000	－
	Redemption of investment corporation bonds		(4,000,000)	－

	Payments for investment corporation bond issuance costs	(18,383)	－
	Dividends paid		(4,896,048)	(4,996,715)

	Net cash used in financing activities		(4,914,432)	(4,996,715)

Net increase (decrease) in cash and cash equivalents		1,532,898	501,816
Cash and cash equivalents at beginning of period		20,247,138	21,780,036
Cash and cash equivalents at end of period		21,780,036	22,281,852

The accompanying notes form an integral part of these financial statements.

Disclaimer:

5. Reference Information

(1) Composition of assets

		As of March 31, 2020	As of September 30, 2020
type	Region
Total of net	Ratio to	Total of net	Ratio to
		book value (Note 1)	total assets	book value (Note 1)	total assets
		(Millions of yen)	(Note 2) (%)	(Millions of yen)	(Note 2) (%)
Real	Central Tokyo (Note 3)	134,827	40.9	134,246	40.8

property	Other (Note 4)	23,985	7.3	23,921	7.3


Trust	Central Tokyo (Note 3)	113,487	34.5	113,262	34.4

Other (Note 4)	35,046	10.6	34,824	10.6


	Subtotal	307,346	93.3	306,254	93.1

Other assets		21,956	6.7	22,660	6.9

	Total	329,302	100.0	328,915	100.0

(Note 1) "Total of net book value" is based on the amounts presented in the balance sheets (book value after depreciation for real estate and real estate in trust) as of the settlement date.

(Note 2) "Ratio to total assets" is rounded to the first decimal place.

(Note 3) "Central Tokyo" referrers to Chiyoda, Chuo, Minato, Shinagawa, Shibuya and Shinjuku Wards.

(Note 4) "Other" refers to greater Tokyo (Kanagawa, Chiba and Saitama Prefectures, and the Tokyo Metropolitan Area excluding central Tokyo) and other major regional cities.

Disclaimer:

(2) Investment Assets

The total number of real estate properties held by MTR and real estate properties in trust associated with the real estate trust's beneficiary rights held by MTR as of September 30, 2020 was 15, and all such real estate is leased by MTR or trust fiduciaries based on trust contracts in the case of real estate in trust.

(i) List of details of real estate and real estate in trust

The overview of real estate held by MTR and real estate trust's beneficiary rights and real estate in trust, properties in trust subject to such rights, as of September 30, 2020 is as follows (real estate, real estate trust's beneficiary rights and real estate in trust, properties in trust subject to such rights, are hereinafter individually or collectively referred to as the "Portfolio").

Overview of the Portfolio

	Location（Parcel number）			Area	Structure	Ownership form
Property name	(Note 1)	(Note 2)
	(Note 1)			Land（㎡）	Building（㎡）	/number of	Land	Building

					floors(Note 1)

Tokyo Shiodome Building	1-12-1 Higashishinbashi, Minato-ku,	17,847.73	191,394.06	SRC・RC・S	Owned	Owned
(Note 3)	Tokyo						B4/37F
ON Building (Note 4) (Note 5)	5-746-1	Kitashinagawa,	Shinagawa-ku,	10,850.67	32,812.27	S・SRC	Owned	Owned
Tokyo, etc.			B2/21F

Kioicho Building (Note 5) (Note 6)	3-3 Kioicho, Chiyoda-ku, Tokyo, etc.	9,291.93	63,535.55	SRC・S	Owned	Owned
B4/26F

Osaki MT Building (Note 4)	5-689-2	Kitashinagawa,	Shinagawa-ku,	13,852.74	26,980.68	S・SRC	Owned	Owned
Tokyo, etc.			B3/14F

Midosuji MTR Building (Note 5)	3-43-5 Awajimachi, Chuo-ku, Osaka City	1,560.98	15,129.16	S・SRC	Owned	Owned
B2/13F

Hiroo MTR Building (Note 5)	2-91-1, Ebisu, Shibuya-ku, Tokyo	1,671.79	6,709.80	SRC	Owned	Owned
B1/7F

Tenjin Prime (Note 5) (Note 7)	2-138 Tenjin, Chuo-ku, Fukuoka City, etc.	1,110.73	7,722.04	S・RC	Owned	Owned
B1/12F

Shin-Yokohama TECH Building	3-9-1	Shinyokohama,	Kohoku-ku,		A-Wing：11,636.35	A-Wing：SRC
2,671.11 B-Wing：13,550.87	B1/9F	Owned	Owned
(Note 8)	Yokohama City, etc.			B-Wing：S・SRC
			Total：25,187.22
							B1/16F
SHIBUYA FLAG (Note 5)	81-11 Udagawacho, Shibuya-ku, Tokyo,	1,026.44	7,766.49	S・SRC	Owned	Owned
etc.				B2/9F

Shinbashi Ekimae MTR Building	2-28-2 Shinbashi, Minato-ku, Tokyo, etc.	1,069.88	7,820.45	S・SRC・RC	Owned Owned
							B2/8F
Ito-Yokado Shonandai	6-2-1 Ishikawa, Fujisawa City, Kanagawa	35,209.93	53,393.66	S	Owned	Owned
Prefecture				5F

Kohnan Sagamihara-Nishihashimoto	5-4-4	Nishihashimoto,	Midori-ku,	19,878.57	40,283.77	S	Owned	Owned
	Sagamihara City					5F
Frespo Inage (Note 5)	731-17 Naganumaharacho, Inage-ku, Chiba	39,556.71	－	－	Owned	－
City

Hotel Okura Kobe (Note 5)	48-1 Hatobacho, Chuo-ku, Kobe City, etc.	30,944.44	72,246.86	SRC・S	Owned	Owned
B2/35F

Park Lane Plaza	2-30-6 Jingumae, Shibuya-ku, Tokyo	1,702.95	5,246.78	RC	Owned	Owned
B1/7F

(Note 1) "Location (Parcel number)", "Area" and "Structure/number of floors" present the details stated in real estate registries.

(Note 2) In "Structure", "SRC" means steel-framed reinforced concrete construction, "RC" means reinforced construction and "S" means steel construction. (Note 3) The land area of the Tokyo Shiodome Building is the area of land jointly owned by MTR, and it includes the area of co-owned interest jointly owned by

MTR with other co-owners. In the relevant land, MTR's co-owned interest is a ratio of 50/100. Moreover, the Tokyo Shiodome Building is a co-owned building, and the floor area of 95,697.03m2 is calculated by multiplying MTR's co-owned interest (ratio of 50/100) by the total floor space.

(Note 4) The land area of the ON Building is the total area (10,850.67m2) of the 3 sections of land in which trust fiduciaries for whom MTR is the sole trust beneficiary own a co-owned interest, and the trust fiduciaries own a co-owned interest of 840,139/1,000,000. The co-owned interest other than the one owned by the trust fiduciaries is owned by MTR as the site of the Osaki MT Building. As a result, the 3 sections of land in question (total area of 10,850.67m2) are stated separately as part of the land area of the Osaki MT Building and the land area of the ON Building. Moreover, the land area of the Osaki MT Building is the total area of all the 17 sections of land that MTR owns or jointly owns, which includes the co-owned interest of other co-owners. Of all the 17 sections of land in question, 13 sections of land (total area of 2,880.79m2) are solely owned by MTR. As for one section of land (area of 121.28m2), MTR owns a co-owned interest of 1/5 and, as for the 3 sections of land (total area of 10,850.67m2), MTR owns a co-owned interest of 159,861/1,000,000. In addition, the Osaki MT Building is a co-owned building, and the floor area of 24,495.21m2 is calculated by multiplying MTR's co-owned interest (ratio of 907,880/1,000,000) by the total floor space.

(Note 5) Of the 15 properties listed above, the ON Building, the Kioicho Building, the Midosuji MTR Building, Hiroo MTR Building, Tenjin Prime, SHIBUYA FLAG, Frespo Inage and Hotel Okura Kobe have been categorized as real estate in trust, and the other 7 properties have been categorized as real estate. In addition, real estate in trust associated with Frespo Inage is only land, and the building is not included.

Disclaimer:

(Note 6) The land area of the Kioicho Building is the total area of the 8 sections of land, the site of the relevant building, and it includes the interest of other owners (partial ownership). Of the 8 sections of land in question, 5 sections of land (total area of 7,433.52m2) are solely owned by a trust fiduciary for whom MTR is the sole trust beneficiary. MTR has acquired sectional ownership of the Kioicho Building. The total floor space stated is the total floor space for the portion of one building that represents the sectional ownership. The exclusive portion of the floor space owned by a fiduciary of the trust in which MTR is the sole beneficiary is 24,598.85 m2.

(Note 7) The land area of Tenjin Prime is the total area of the 7 sections of land, the site of the relevant building, and part of the land in question includes leased land. Of the 7 sections of land in question, 6 sections of land (total area of 1,081.75m2) are solely owned by a trust fiduciary for whom MTR is the sole trust beneficiary, and a trust fiduciary for whom MTR is the sole trust beneficiary has the land lease right over the remaining section of land (area of 28.98m2).

(Note 8) The Shin-Yokohama TECH Building is real estate that is comprised of two buildings, A-Wing and B-Wing, and the site for the buildings.

Disclaimer:

Categories, prices and investment ratios of the Portfolio

Book

End-of-p

Direct

Discounted cash

value at

reduction

flow

Acquisition

eriod

Price

the end

appraisal

method

(DCF) method

Investment

Region

Use

Property name

(Note 2)

value

Appraiser

ratio

(Note 1)

fiscal

(Millions of

(Note 3)

Discount

Terminal

(Note 4)

period

Cap rate

yen)

(Millions

(Millions of

rate

cap rate

of yen)

yen)

Tokyo Shiodome Building

110,000

100,776

112,000

3.3％

3.2％

3.3％

Rich Appraisal

33.9%

Institute K.K.

ON Building

39,900

39,123

33,600

3.5％

3.2％

3.7％

Japan Real Estate

12.3%

Institute

Office

Daiwa Real Estate

Kioicho Building

34,300

33,279

38,000

3.2％

3.0％

3.4％

Appraisal Co.,

10.6%

building

Ltd.

Osaki MT Building

14,386

13,019

16,500

3.4％

3.1％

3.6％

Japan Real Estate

4.4%

(Note 5)

Institute

Daiwa Real Estate

Central

Hiroo MTR Building

8,100

8,375

8,440

3.6％

3.4％

3.8％

Appraisal Co.,

2.5%

Ltd.

Tokyo

Subtotal

206,686

194,573

208,540

―

63.8%

SHIBUYA FLAG

32,040

32,484

40,200

3.2％

3.0％

3.4％

Japan Real Estate

9.9%

Retail

Institute

facility

Shinbashi Ekimae MTR

Nippon

18,000

17,308

22,500

3.6％

3.4％

3.8％

Tochi-Tatemono

5.6%

Building

Co., Ltd.

Subtotal

50,040

49,793

62,700

―

15.4%

Nippon

Other

Park Lane Plaza

3,200

3,141

4,010

3.4％

4.1％

3.1％

Tochi-Tatemono

1.0%

Co., Ltd.

Subtotal

3,200

3,141

4,010

―

1.0%

Subtotal

259,926

247,508

275,250

―

80.2%

Daiwa Real Estate

Midosuji MTR Building

10,170

9,991

10,600

3.6％

3.4％

3.8％

Appraisal Co.,

3.1%

Ltd.

Office

Tenjin Prime

6,940

6,661

8,930

3.9％

3.6％

4.1％

Japan Real Estate

2.1%

building

Institute

Shin-Yokohama

Nippon

6,900

6,887

7,570

4.6％

4.4％

4.9％

Tochi-Tatemono

2.1%

TECH Building

Co., Ltd.

Subtotal

24,010

23,540

27,100

―

7.4%

Ito-Yokado Shonandai

11,600

9,827

11,700

5.3％

5.0％

5.5％

Japan Real Estate

3.6%

Other

Institute

Retail

Kohnan Sagamihara-

7,460

7,206

8,500

5.2％

4.9％

5.4％

Japan Real Estate

2.3%

Nishihashimoto

Institute

facility

Frespo Inage

2,100

2,193

2,620

－

7.9%

－

Japan Real Estate

0.6%

(Note 6)

(Note 7)

(Note 8)

Institute

Subtotal

21,160

19,227

22,820

―

6.5%

Other

Hotel Okura Kobe

19,000

15,977

17,300

4.8％

4.6％

4.9％

Rich Appraisal

5.9%

Institute K.K.

Subtotal

19,000

15,977

17,300

―

5.9%

Subtotal

64,170

58,745

67,220

―

19.8%

Total

324,096

306,254

342,470

―

100.0%

(Note 1) The attribution of properties that have more than one use is judged based on their main use. The Tokyo Shiodome Building and the Kioicho Building are categorized as "Office building", which is the main use of the buildings, and SHIBUYA FLAG is categorized as "Retail facility", which is the main use of the building. The same applies thereafter.

(Note 2) The "Acquisition price" stated is the amount (sales prices stated in sales contracts, etc.) that does not include various expenses (sales commission

Disclaimer:

charges, property and other taxes, etc.) that were incurred when the relevant Portfolio was acquired. The same applies thereafter.

(Note 3) The "End-of-period appraisal value" stated is the value that was calculated based on the capitalization method (based on the price as of September 30, 2020) by real estate appraisers in accordance with MTR's rules and the Investment Corporation Calculation Rules (Cabinet Office Ordinance No. 47, 2006; including revisions thereafter).

(Note 4) The "Investment ratio" is the ratio of the acquisition prices of each asset against the total acquisition price of the Portfolio, and is rounded to the first decimal place.

(Note 5) The acquisition price of the Osaki MT Building stated is the total amount of the acquisition prices on March 31, 2005 (7,870 million yen), October 28, 2005 (5,656 million yen) and January 30, 2015 (860 million yen).

(Note 6) The acquisition price of Frespo Inage stated is the amount equivalent to 50% of 4,200 million yen, the acquisition price of the entire property in question, because 50% of the land in trust was transferred on February 29, 2012.

(Note 7) The direct capitalization method is not adopted for Frespo Inage.

(Note 8) The terminal cap rate of Frespo Inage has not been stipulated.

Disclaimer:

(ii) Details of the situation of leasing of the Portfolio

The situation of leasing of the Portfolio held by MTR as of September 30, 2020 is as follows.

Of the Portfolio held by MTR, the property in the Portfolio whose rental revenues account for 10% of the total rental revenues of the entire Portfolio or higher in the fiscal period ended September 30, 2020 (six months from April 1, 2020 to September 30, 2020) is 2 properties, Tokyo Shiodome Building and Kioicho Building.

Situation of leasing of the Portfolio

			Rental	Ratio to	Rentable	Rent	Total number
			revenues	total rental
Region	Use	Property name	area	area	of
(Note 1)	revenues
			(Note 3)(㎡)	(Note 4)(㎡)	tenants
			(Millions of yen)	ratio(Note 2)

		Tokyo Shiodome Building	2,795	31.5％	95,697.03	95,697.03	１

		ON Building	(Note 5)	(Note 5)	20,654.60	20,654.60	１

	Office	Kioicho Building (Note 6)	1,102	12.4％	24,748.48	24,722.48	34
	building	(67)

		Osaki MT Building (Note 7)	365	4.1％	24,495.21	24,495.21	１
		(17)
Central Tokyo

	Hiroo MTR Building (Note 8)	204	2.3％	4,946.36	4,946.36	８


	Retail	SHIBUYA FLAG (Note 8)	(Note 5)	(Note 5)	5,983.86	5,983.86	３

	Facility	Shinbashi Ekimae MTR Building	460	5.2％	8,055.00	8,055.00	１


	Other	Park Lane Plaza (Note 9)	105	1.2％	4,443.03	4,125.99	18

		Midosuji MTR Building (Note 10)	311	3.5％	15,129.16	15,129.16	１
		(31)

	Office
	Tenjin Prime (Note 8)	253	2.8％	5,990.40	5,990.40	15
	building


		Shin-Yokohama TECH Building	355	4.0％	18,238.86	18,238.86	10

Other		Ito-Yokado Shonandai	375	4.2％	53,393.66	53,393.66	１

	Retail	Kohnan	(Note 5)	(Note 5)	40,283.77	40,283.77	１
	facility	Sagamihara-Nishihashimoto

		Frespo Inage	123	1.4％	39,556.71	39,556.71	１

	Other	Hotel Okura Kobe	625	7.0％	72,246.86	72,246.86	１

	Total	(Note 11)	8,882	100.0％	433,862.99	433,519.95	97
	(176)

(Note 1) "Rental revenues" stated are rental revenues (rent, common charges, other rental revenues, etc.) for the fiscal period ended September 30, 2020 fiscal period.

(Note 2) The "Ratio to total rental revenues" is rounded to the first decimal place.

(Note 3) The "Rentable area" includes a rentable area that is able to be used for use other than the main use in question (offices, stores, warehouses, etc.), in addition to the rentable area that is able to be used for leasing, the main use of the Portfolio, and the "Rentable area" stated is the total area of the areas as described above (including common areas, etc. that are leased). The area of the Tokyo Shiodome Building stated is the area calculated by multiplying MTR's co-owned interest (50/100) by the total rentable area of the building (191,394.06m2). In addition, the area of the Osaki MT Building stated is the area calculated by multiplying MTR's co-owned interest (907,880/1,000,000) by the total rentable area of the building (26,980.68m2).

(Note 4) The "Rent area" stated is the area that includes the rentable area and the area for which lease contracts are actually concluded and the property is leased. The area of the Tokyo Shiodome Building stated is the area calculated by multiplying MTR's co-owned interest (50/100) by the total rent area of the building (191,394.06m2). In addition, the area of the Osaki MT Building stated is the area calculated by multiplying MTR's co-owned interest (907,880/1,000,000) by the total rent area of the building (26,980.68m2).

(Note 5) The "Rental revenues" and the "Ratio to total rental revenues" of the ON Building, SHIBUYA FLAG and Kohnan Sagamihara-Nishihashimoto are not disclosed because the agreements of the tenants about disclosing rents have not been able to be obtained.

(Note 6) Regarding the office portion of the Kioicho Building, MTR leases the office portion of the Kioicho Building from a fiduciary trust company under a master lease agreement and subleases it to tenants. Regarding the residential portion, the agreement used is the master lease pass-through model. The total number of tenants of the relevant properties stated above is that under the sublease agreement for the office portion and the master lease agreement for the residential portion. The figure in brackets for the total number of tenants is the total number of tenants based on the sublease agreements of the office and residential portions of the building.

(Note 7) A master lease agreement under which rent income is linked to rents under a sublease agreement has been concluded for the Osaki MT Building. The

Disclaimer:

figure in brackets for the total number of tenants of the building is the total number of tenants based on the sublease agreements.

(Note 8) MTR leases the land and building of Hiroo MTR Building, SHIBUYA FLAG and Tenjin Prime from a fiduciary trust company under a master lease agreement and subleases it to tenants. The total number of tenants of the above properties is that under the sublease agreements.

(Note 9) At Park Lane Plaza, if lease contracts for more than one residential unit are concluded with one tenant, the number of residential units is counted as the number of tenants.

(Note 10) The agreement used for the Midosuji MTR Building is the master lease pass-through model. The figure in brackets for the number of tenants of the building is the total number of tenants based on the sublease agreements.

(Note 11) The total number of tenants in brackets is the total number of tenants calculated based on the total number of tenants under the sublease agreements for the Osaki MT Building, the Kioicho Building and the Midosuji MTR Building.

Disclaimer:

Occupancy rate of the Portfolio

Region	Use		Property name		2020	2019	2018	2017	2016

	End of	End of	End of	End of	End of	End of	End of	End of	End of	End of

						Sep.	Mar	Sep.	Mar.	Sep.	Mar.	Sep.	Mar.	Sep.	Mar.
			Tokyo Shiodome Building	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0

			ON Building	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0

	Office		Kioicho Building (Note 2)	99.9	99.9	99.9	99.9	99.9	99.9	99.9	99.9	96.7	66.1
		(98.7)	(98.7)	(98.5)	(99.9)	(99.9)	(98.7)	(98.1)	(98.1)	(94.8)	（65.5)
	building
		Osaki MT Building(Note 3)	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0

			(99.1)	(97.8)	(91.8)	(91.8)	(100.0)	(92.7)	(92.7)	(92.7)	(96.7)	（98.2)

			Hiroo MTR Building (Note	100.0	100.0	100.0	100.0	84.2	99.5	－	－	－	－
			4)
Central
		Subtotal			99.9	99.9	99.9	99.9	99.5	99.9	99.9	99.9	99.5	94.9
Tokyo
		(Note 5)			(99.7)	(99.6)	(99.0)	(99.3)	(99.5)	(99.1)	(99.0)	(99.0)	(98.9)	（94.3)

	Retail		SHIBUYA FLAG (Note 4)	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0

	facility		Shinbashi	Ekimae MTR	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
			Building

			Subtotal			100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0

	Other		Park Lane Plaza	100.0	92.9	95.9	100.0	100.0	96.8	100.0	100.0	93.5	92.7

			Subtotal			100.0	92.9	95.9	100.0	100.0	96.8	100.0	100.0	93.5	92.7

	Subtotal (Note 5)			99.9	99.8	99.9	99.9	99.6	99.9	99.9	99.9	99.4	95.3
			(99.7)	(99.5)	(99.0)	(99.3)	(99.5)	(99.2)	(99.1)	(99.1)	(98.8)	（94.8)

			Midosuji	MTR Building	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
	Office		(Note 6)			(98.4)	(100.0)	(100.0)	(100.0)	(96.4)	(100.0)	(95.5)	(95.0)	(96.7)	（92.9)
		Tenjin Prime (Note 4)	100.0	100.0	100.0	100.0	89.1	100.0	100.0	100.0	94.6	100.0
	building

			Shin-Yokohama	100.0	100.0	100.0	98.7	98.7	95.7	92.6	98.8	97.8	90.5
			TECH Building

		Subtotal (Note 5)	100.0	100.0	100.0	99.4	97.7	98.0	96.6	99.5	98.2	95.6
		(99.5)	(100.0)	(100.0)	(99.3)	(96.3)	(97.7)	(94.7)	(97.9)	(96.9)	（92.9)

Other			Ito-Yokado Shonandai	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
Retail
		Kohnan Sagamihara-	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0
	facility		Nishihashimoto

			Frespo Inage	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0

			Subtotal			100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0

	Other		Hotel Okura Kobe	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0

			Subtotal			100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0	100.0

	Subtotal (Note 5)			100.0	100.0	100.0	99.9	99.6	99.7	99.4	99.9	99.8	99.4
			(99.5)	(100.0)	(100.0)	(99.9)	(99.5)	(99.7)	(99.2)	(99.8)	(99.6)	（99.2)

	Total (Note 5)			99.9	99.9	99.9	99.9	99.6	99.8	99.7	99.9	99.6	97.9
			(99.9)	(99.8)	(99.6)	(99.7)	(99.5)	(99.5)	(99.2)	(99.5)	(99.3)	（97.5)

(Note 1) The "Occupancy rate" is rounded to the first decimal place. The occupancy rate stated for each Portfolio is the percentage of the total rented area out of the total rentable area. The subtotal of the occupancy rate for each category (or the total occupancy rate of the entire Portfolio) is the percentage of the subtotal (or the total) rented area out of the subtotal (or the total) rentable area. The subtotal and total occupancy rates stated are the rates based on the Portfolio held by MTR as of the end of each fiscal period. If the result of rounding is 100.0%, however, the rate is indicated as 99.9% by rounding down the second decimal place to the nearest first decimal place.

(Note 2) Regarding the office portion of the Kioicho Building, MTR leases the office portion of the Kioicho Building from a fiduciary trust company under a master lease agreement and subleases it to tenants. Regarding the residential portion, the agreement used is the master lease pass-through model. The occupancy rates of the relevant properties stated above are those under the sublease agreement for the office portion and the master lease agreement for the residential portion. The figures in brackets for the occupancy rates are the occupancy rates based on the sublease agreements of the office and residential portions of the building.

(Note 3) A master lease agreement under which rent income is linked to rents under a sublease agreement has been concluded for the Osaki MT Building. The figures in brackets for the occupancy rates of the building are the occupancy rates of tenants based on the sublease agreements.

(Note 4) MTR leases the land and building of Hiroo MTR Building, SHIBUYA FLAG and Tenjin Prime from a fiduciary trust company under a master lease agreement and subleases it to tenants. The occupancy rates of the above properties are those under the sublease agreements.

(Note 5) The subtotals and the total occupancy rates in brackets are the rates calculated based on the occupancy rates under the sublease agreements for the Kioicho Building, the Osaki MT Building and the Midosuji MTR Building.

(Note 6) The agreement used for the Midosuji MTR Building is the master lease pass-through model. The figures in brackets for the occupancy rates of the building are the occupancy rates based on the sublease agreement.

Disclaimer:

This report contains translations of selected information described in the Financial Release (Kessan-Tanshin) prepared under the timely-disclosure requirements of the Tokyo Stock Exchange, and portions of the Financial Statements and the Performance Information Report for the fiscal period ended September 30, 2020 from April 1, 2020 to September 30, 2020, of MORI TRUST Sogo Reit, Inc. (MTR), prepared pursuant to the Law Concerning Investment Trusts and Investment Corporations of Japan.

This English language document was prepared solely for the convenience of and reference by investors and neither corresponds to the original Japanese documents nor is intended to constitute a disclosure document. The Japanese language Kessan-Tanshin and the Financial Statements and the Performance Information Report for the aforementioned should always be referred to as originals of this document.

English terms for Japanese legal, accounting, tax and business concepts used herein may not be precisely identical to the concepts of the equivalent Japanese terms. With respect to any and all terms herein, including without limitation, financial statements, if there exist any discrepancies in the meaning or interpretation thereof between the original Japanese documents and English statements contained herein, the original Japanese documents will always govern the meaning and interpretation.

None of MTR, MORI TRUST Asset Management Co., Ltd. (MTAM) or any of their respective directors, officers, employees, partners, shareholders, agents or affiliates will be responsible or liable for the completeness, appropriateness or accuracy of English translations or the selection of the portion(s) of any document(s) translated into English. No person has been authorized to give any information or make any representations other than as contained in this document in relation to the matters set out in this document, and if given or made, such information or representation must not be relied upon as having been authorized by MTR, MTAM or any of their respective directors, officers, employees, partners, shareholders, agents or affiliates.

The financial statements are a translation of the unaudited financial statements of MTR, that were prepared in accordance with generally accepted accounting principles in Japan (Japanese GAAP) which may materially differ in certain respects from generally accepted accounting principles and practices in other jurisdictions. In preparing the financial statements, certain reclassifications and modifications have been made to the financial statements issued domestically in order to present them in a format that is more familiar to readers outside Japan.

Certain provisions of this document contain forward-looking statements and information. We base these statements on our beliefs as well as our assumptions based solely on certain limited information currently available to us. Because these statements reflect our current views concerning future events, these statements involve known and unknown risks, uncertainties and assumptions. These forward-looking statements are not a guarantee of future performance and involve risks and uncertainties, and there are certain important factors that could cause actual results to differ, possibly materially, from expectations or estimates reflected in such forward-looking statements, including without limitation: the general economy, market conditions, financial markets including the performance of the real estate market, interest rate fluctuations, competition with our properties, and the impact of changing regulations or taxation.

MTR does not intend and is under no obligation to update any particular forward-looking statement included in this document. The forward-looking statements contained in this press release speak only as of the date of release, November 18, 2020, and MTR does not undertake to update those forward-looking statements to reflect events or circumstances occurring after the date of this release.

Disclaimer:

Attachments

Original document
Permalink

Disclaimer

MORI TRUST Sogo Reit Inc. published this content on 18 November 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 18 November 2020 10:36:08 UTC

Delayed Japan Exchange Other stock markets 02:00:00 2024-04-26 am EDT			5-day change	1st Jan Change
72,800 ^JPY	+0.97%		-1.22%	+0.41%

Apr. 23	Mori Trust REIT to Borrow 2.5 Billion Yen to Repay Debt	MT
Apr. 23	Mori Trust REIT's Asset Manager to Sell Sagamihara Retail Facility for 9 Billion Yen	MT

Mori Trust REIT to Borrow 2.5 Billion Yen to Repay Debt	Apr. 23	MT
Mori Trust REIT's Asset Manager to Sell Sagamihara Retail Facility for 9 Billion Yen	Apr. 23	MT
An undisclosed buyer agreed to acquire Hashimoto MTR Building from MORI TRUST REIT, Inc. for ¥8.5 billion.	Apr. 21	CI
Mori Trust REIT to Borrow 3 Billion Yen to Repay Debt	Apr. 10	MT
Mori Trust REIT to Borrow Funds to Repay Loan	Apr. 05	MT
Mori Trust Reit Secures 2 Billion Yen Loan	Mar. 27	MT
Mori Trust REIT to Refinance 2 Billion Yen Bank Loan Due Tuesday	Mar. 18	MT
Mori Trust REIT to Refinance 2 Billion Yen Bank Loan Due Monday	Mar. 08	MT
Mori Trust REIT Secures Energy Efficiency Certification for Tokyo Property	Mar. 04	MT
Mori Trust Reit Secures 6.5 Billion Yen Loans for Debt Payment	Feb. 27	MT
MORI TRUST REIT, Inc. Announces Borrowing of Funds and Extension of Credit Line Agreement	Feb. 27	CI
Mori Trust Reit Raises 4 Billion Yen for Growth, Redeems Debt, Eyes Tokyo Landmark	Dec. 13	MT
Mori Trust Reit Secures 8.5 Billion Yen from Major Banks to Refinance Existing Debt	Nov. 28	MT
MORI TRUST REIT, Inc. Executes the Borrowing in Order to Repay Long-Term Loans Payable of JPY 8,500 Million	Nov. 28	CI
Mori Trust Sogo Reit, Inc. Provides Earnings Guidance for the Fiscal Period Ending February 29, 2024 and Fiscal Period Ending August 31, 2024	23-10-25	CI
Mori Trust Reit, Inc. Provides Dividend Guidance for the Fiscal Period Ending February 29, 2024 and Fiscal Period Ending August 31, 2024	23-10-25	CI
Mori Trust REIT to Borrow 1 Billion Yen from Resona Bank	23-10-17	MT
Mori Trust Reit, Inc. Decides to Execute the Borrowing in Order to Repay Long-Term Loans	23-10-16	CI
Mori Trust REIT Secures a 500 million Yen Loan from Resona Bank	23-10-11	MT
Mori Trust REIT Secures 2.5 Billion Yen Loan to Repay Debt	23-10-04	MT
MORI TRUST REIT, Inc. Announces Notice Concerning Borrowing of Funds	23-09-27	CI
Mori Trust REIT to Borrow Long-Term and Short-Term Funds	23-08-30	MT
MORI TRUST REIT, Inc. Revises Earnings Guidance for the Nine Months Ending August 31, 2023 and Year Ending February 2024	23-07-27	CI
SL Green's Park Ave tower stake drew interest from several investors -source	23-06-28	RE
MORI TRUST REIT, Inc. Announces Executive Changes, Effective June 29, 2023	23-06-16	CI

	1st Jan change	Capi.
MORI TRUST REIT, INC.	+0.41%	1.65B
W. P. CAREY INC.	-13.62%	12.25B
GECINA	-13.58%	7.38B
MIRVAC GROUP	-1.91%	5.36B
LAND SECURITIES GROUP PLC	-8.34%	5.36B
THE GPT GROUP	-11.21%	5.25B
ESSENTIAL PROPERTIES REALTY TRUST, INC.	+0.67%	4.51B
NOMURA REAL ESTATE MASTER FUND, INC.	-9.21%	4.53B
BRITISH LAND COMPANY PLC	-2.55%	4.5B
DAIWA HOUSE REIT INVESTMENT CORPORATION	+3.97%	3.89B

MORI TRUST REIT, Inc.

Equities

8961

JP3046170001

Diversified REITs

MORI TRUST Sogo Reit : Financial Summary for the 37th Period (September 2020)

Latest news about MORI TRUST REIT, Inc.

Chart MORI TRUST REIT, Inc.

Company Profile

Income Statement Evolution

EPS Revisions

Quarterly earnings - Rate of surprise

Sector Diversified REITs