October 18, 2021

5th Fiscal Period (Ended August 2021) Financial Results Briefing Materials

Asset

Management

Company

SANKEI REAL ESTATE Inc.

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SANKEI REAL ESTATE Inc.

Table of Contents

Executive Summary

… P3

1．Financial Results and

Management Highlights

… P4

2．External Growth Results and Strategy

… P16

2-1

External Growth Results

…P17

2-2

External Growth Strategy

…P21

3．Internal Growth Results and Strategy

… P26

3-1

Internal Growth Results

…P27

3-2

Internal Growth Strategy

…P29

4．Financial Strategy

… P32

5．ESG Initiatives

… P36

Appendix

… P39

Disclaimer

This document is intended for the purpose of providing information on SANKEI REAL ESTATE Inc. (hereinafter, "SANKEI REAL ESTATE"), and is not intended for the purpose of soliciting investment in or recommending the trading of specific products. Please consult your securities company for any purchase of SANKEI REAL ESTATE investment units. When making any investment, investors do so at their sole discretion and risk. The information provided in this document is an analysis or a judgment made by Sankei Building Asset Management Co., Ltd. (hereinafter, "Sankei Building Asset Management") based on information currently available to Sankei Building Asset Management, and Sankei Building Asset Management does not guarantee and is not liable whatsoever for the accuracy, reliability, integrity, etc. thereof. In addition, the content may be changed or abolished without prior notice. The content of this document contains earnings forecasts and other forward-looking statements. These forward-looking statements are not a guarantee of future business performance or financial content of SANKEI REAL ESTATE. All rights to any part of this document belong to Sankei Building Asset Management, and no part of this document shall be used, cited, reproduced, altered, disassembled, transmitted, etc. by any means, electronic or mechanical, for any purpose without permission. This document is not a disclosure document based on the Financial Instruments and Exchange Act. Please contact below if you have any inquiries concerning this document.

Sankei Building Asset Management Co., Ltd.

Finance & IR Department

Phone: +81-3-5542-1316

2

SANKEI REAL ESTATE Inc.

Executive Summary

Financial Results and Management Highlights

  • In the 5th FP, revenue and profit increased (operating revenue: +1.3%; operating profit: +2.0%) from the previous fiscal period
  • Resolved to acquire 4 new properties through capital increase through public offering (Aug. 2021) Asset size: 71.5 billion yen → 96.6 billion yen (+ 25.1 billion yen, +35.1% compared with before)
  • DPU*1 for the 5th FP was maintained at the beginning-of-period forecast*2 of 2,862 yen through temporary distribution in excess of earnings
  • Participation in GRESB Real Estate Assessment (July 2021)
    Obtained "3-Star" and "Green Star" certifications (October 2021)

Future Growth Strategies

  • Begin Phase 2 aimed at the mid-term target (200-300 billion yen in asset size)
    • Aim for early inclusion in global indices
    • External growth and internal growth that enable sustained growth of DPU
      • Implement diversified investment conscious of the portfolio matrix
      • Seek room for internal growth and reduce risk of internal degeneration
    • Consider seeking to obtain ratings in earnest
    • Consider enhancing the sustainability promotion system

*1

"DPU" refers to distribution per unit. The same applies below.

*2

Beginning-of-period forecast (hereinafter "forecast") refers to the forecasts for the 5th FP at the time of the announcement of the

3

financial results for the previous fiscal period (April 2021). The same applies below.

SANKEI REAL ESTATE Inc.

1. Financial Results and Management Highlights

4

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Disclaimer

Sankei Real Estate Inc. published this content on 25 October 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 October 2021 01:13:02 UTC.