One REIT : Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)

Presentation Material

for the Seventeenth Fiscal Period

(Ended Feb. 2022)

April 14, 2022

https://one-reit.com/en/ Securities Code：3290

(Asset Management Company)

Table of Contents

1 Executive Summary

Summary of Overview of Financial Results and Earnings Forecasts	3
Management Highlights	4
Impact of COVID-19, Etc.	5
Notes (1)	7

2 Overview of Financial Results and Earnings Forecasts

	Overview of Financial Results:
	Seventeenth Fiscal Period (Ended Feb. 2022)	9
	Factors for Change in Dividends per Unit:
	Seventeenth Fiscal Period (Ended Feb. 2022)	10
	Earnings Forecasts:
	Eighteenth Fiscal Period (Ending Aug. 2022) and
	Nineteenth Fiscal Period (Ending Feb. 2023)	11
	Factors for Change in Dividends per Unit:
	Eighteenth Fiscal Period (Ending Aug. 2022) and
	Nineteenth Fiscal Period (Ending Feb. 2023)	12
	Factors for Change in Dividends per Unit:
	Forecast for the Eighteenth Fiscal Period (Ending Aug. 2022)	13
	Growth Strategy
3
	Portfolio Status	15
	Portfolio Management Status	17
	External Growth Strategy	23
	Financial Status	25
	Efforts for ESG
4
	Overall	28
	Key Issues (Materiality) and KPI of the MONE Group	29
	Environment	31
	Social	33
	Governance	34
	Notes (2)	35

5 Appendix

About the Sponsor	37
About the MONE Group	39
Features of One REIT	41
Portfolio Building Policy	43
Basic Stance of One REIT	44
Balance Sheet	45
Statement of Income	46
Overview of Individual Properties	47
Occupancy Rate	53
Status of Rent Gap	55
Lease Business Revenue and Expenditure by Property	56
Creation of Buildings Chosen by Tenants	60
List of Appraisal Values	61
Status of Interest-Bearing Debt	63
Approach for Internal Reserves / Asset Management Fee Scheme	64
Unitholder Status	65
Investment Unit Price	66
Overview of One REIT	67
Overview of the Asset Management Company	68

One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)		1

1 Executive Summary

One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)		2

Summary of Overview of Financial Results and Earnings Forecasts

Executive Summary

• As for the actual results of dividends per unit the Seventeenth Fiscal Period (Ended Feb. 2022), although utilities rose more than expected, it was 7,326 yen, up 136 yen from the most recent forecast, due to the difference in the estimation of expenses planned upon the third PO (September 2021)
• In the Eighteenth Fiscal Period (Ending Aug. 2022), the amount of distribution based on periodic profit and loss is expected to decrease due to the absence of the effects of fixed asset tax and city planning tax as well as the expected review of leasing plan and utilities remaining at a high level
  Allocate profit brought forward (internal reserves) to the insufficient amount less than the forecast figure for dividends per unit announced in September 2021, and firmly maintain the forecast figure of 7,120 yen per unit
• In the Nineteenth Fiscal Period (Ending Feb. 2023) , although tenant leasing is still underway and utilities will have an impact, the range of decrease in the amount of distribution based on periodic profit and loss will become moderate and dividends per units is expected to be 6,600 yen

▌Overview of Financial Results and Earnings Forecasts

		Sixteenth		Seventeenth	Eighteenth	Nineteenth
		Fiscal Period		Fiscal Period	Fiscal Period	Fiscal Period
		(Ended Aug.		(Ended Feb.	(Ending Aug.	(Ending Feb.
		2021)		2022)		2022)	2023)
(Millions of yen)	Actual		Actual	Forecast	Forecast
Operating		4,889		4,384		4,439	4,405
revenue		(Recording of gain on
		sale of properties)
Operating profit		2,878		2,262		2,127	2,071
Recurring profit		2,613		1,967		1,826	1,773
Net income		2,612		1,966		1,825	1,771
Dividends per		¥7,546		¥7,326		¥7,120	¥6,600
unit		(Reversal of allowance)				(Allocated to internal
						reserves)
		+¥226			+¥136
		(+3.1%)			(+1.9%)
Most recent		¥7,320		¥7,190		¥7,120
forecast
Initial forecast		¥7,150		¥7,170

▌Dividends per Unit	Initial forecast

Amount equivalent to periodic profit and loss (forecast)

¥7,889	¥7,994		Amount equivalent to internal reserves (forecast)
	Actual
	Gain on sale of	¥7,605	¥7,546
Gain on sale of	MY Atsugi
CP10 Building	Building		Sale of 3 properties	¥7,326
Acquisition of
		Acquisition of		¥7,120
Nishi-Gotanda 102			3 properties
Building	¥7,640		¥7,150	¥7,190	¥320
			¥6,600
¥6,900		¥7,140			¥6,800
Feb. 2020	Aug. 2020	Feb. 2021	Aug. 2021	Feb. 2022	Aug. 2022	Feb. 2023
(Actual)	(Actual)	(Actual)	(Actual)	(Actual)	(Forecast)	(Forecast)

One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)		3

Management Highlights (Internal growth, external growth, finance, etc.)

Executive Summary

• Conducted operation assessing the status of each tenant,

Internal		and realized rent increase even amid the COVID-19 crisis
growth		• Demand for less than 100 tsubo of area, which is the main
				area range of rental rooms of One REIT, remained strong
								Sixteenth Fiscal Period Seventeenth Fiscal Period
									(Ended Aug. 2021)	(Ended Feb. 2022)
		Period-end occupancy rate			99.2%	97.6%
				Rent increase			¥3,730 thousand	¥1,694 thousand
	(Rent revision and tenant replacement)					/month	/month
				Rent gap (Note 1)				-13.4%	-10.8%
			9,355							(Thousands of yen, based on monthly rent)
10,000			Rent revisions			Replacement
			4,473
5,000								3,730
						2,748
			4,881			2,437	1,694
				1,727
										1,141	553
						1,021		1,292
0
	Aug. 2020	Feb. 2021				Aug. 2021	Feb. 2022

• Breakdown of Occupied and Vacated Sections (Based on the number of cases, Seventeenth Fiscal Period)

		Move-outs		Move-ins	(Cases)
Sep20. 20211/9		4		3
Oct2021/10.		3		3
Nov2021/11.	1	4		7				Move-in area	Less than
								100 tsubo
Dec2021/12.		3		4
					Move-out area	Less than
Jan20. 20222/1		2	1	3
				100 tsubo
								Move-out area	100 tsubo
Feb20. 2022/2		5		5
					or more

External	Acquired properties located near stations and contributing to
the progress in tenant diversification through the third PO, and
growth
pursued the stability and growth potential of portfolio

Issued One REIT's first green bond (10 year), and strengthened Financial the financing base as well as contributed to the extension of

average remaining period

• Overview of issuance of 5th bond (green bond)

	Name	Issuance date	Period	Issue amount		Interest rate
	(Millions of yen)	(%)
	The 5th Investment	January 27,
	Corporation Bonds	10 years		3,000		0.780
	2022
	(green bond)
					Sixteenth Fiscal Period		Seventeenth Fiscal Period
					(Ended Aug. 2021)		(Ended Feb. 2022)
	Average interest rate (Note 2)		0.629%				0.622%
	Average remaining period (Note 3)		3.23 years			3.60 years
		LTV (Note 4)			47.2%				47.2%

Global index

• As planned upon the announcement of the previous financial results (October 15, 2021), realized the incorporation into FTSE EPRA Nareit Global Real Estate Index Series, which is expected to contribute to the expansion of investor base and improvement of liquidity, at the time of the review in March

Other 2022

ESG

• Supported TCFD recommendations and signed the PRI at Mizuho Realty One (MONE), which is the parent company of the Asset Management Company, and further promoted efforts for ESG at the MONE Group
• Identified "Key Issues (Materiality)", and set KPI

One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)		4