Ｏｎｅリート投資法人（3290） – [Delayed] Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)

Presentation Materialfor the Seventeenth Fiscal Period (Ended Feb. 2022)April 14, 2022https://one-reit.com/en/Securities Code：3290(Asset Management Company)2 Overview of Financial Results and Earnings ForecastsBasic Stance of One REITTable of Contents1 Executive SummarySummary of Overview of Financial Results and Earnings ForecastsManagement HighlightsImpact of COVID-19, Etc.Notes (1)Overview of Financial Results: Seventeenth Fiscal Period (Ended Feb. 2022)Factors for Change in Dividends per Unit: Seventeenth Fiscal Period (Ended Feb. 2022)Earnings Forecasts: Eighteenth Fiscal Period (Ending Aug. 2022) andNineteenth Fiscal Period (Ending Feb. 2023)Factors for Change in Dividends per Unit: Eighteenth Fiscal Period (Ending Aug. 2022) andNineteenth Fiscal Period (Ending Feb. 2023)Factors for Change in Dividends per Unit: Forecast for the Eighteenth Fiscal Period (Ending Aug. 2022)3 Growth StrategyPortfolio StatusPortfolio Management StatusExternal Growth StrategyFinancial Status4 Efforts for ESGOverallKey Issues (Materiality) and KPI of the MONE GroupEnvironmentSocialGovernanceNotes (2)3457910111213151723252829313334355 AppendixAbout the SponsorAbout the MONE GroupFeatures of One REITPortfolio Building PolicyBalance SheetStatement of IncomeOccupancy RateStatus of Rent Gap Overview of Individual PropertiesLease Business Revenue and Expenditure by PropertyCreation of Buildings Chosen by TenantsList of Appraisal ValuesStatus of Interest-Bearing DebtApproach for Internal Reserves / Asset Management Fee SchemeUnitholder StatusInvestment Unit PriceOverview of One REITOverview of the Asset Management Company37394143444546475355566061636465666768One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)11Executive SummaryOne REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)2Summary of Overview of Financial Results and Earnings ForecastsExecutive 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 ofthe effects of fixed asset tax and city planning tax as well as the expected review of leasing plan and utilities remaining at a high levelAllocate 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 theamount 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▌Dividends per UnitInitial forecastActual¥7,546 Sale of 3 propertiesAcquisition of 3 properties¥7,605 ¥7,994 Gain on sale ofMY Atsugi Building¥7,640 ¥7,889 Gain on sale of CP10 BuildingAcquisition of Nishi-Gotanda 102 Building¥6,900 Amount equivalent to periodic profit and loss (forecast)Amount equivalent to internal reserves (forecast)¥7,326 ¥7,120 ¥7,150 ¥7,190 ¥320¥6,600 ¥6,800 Operating profit 2,8782,2622,1272,071¥7,140 Sixteenth Fiscal Period (Ended Aug. 2021)Seventeenth Fiscal Period (Ended Feb. 2022)Eighteenth Fiscal Period (Ending Aug. 2022)Nineteenth Fiscal Period (Ending Feb. 2023)ActualActualForecastForecast4,3844,4394,405(Millions of yen)Operating revenue4,889(Recording of gain on sale of properties)Recurring profit 2,6131,9671,8261,773Net income2,6121,9661,8251,771Dividends per unit¥7,546(Reversal of allowance)¥7,326¥7,120(Allocated to internal reserves)¥6,600+¥226(+3.1%)+¥136(+1.9%)Most recent forecast¥7,320¥7,190¥7,120Initial forecast¥7,150¥7,170Feb. 2020(Actual)Aug. 2020(Actual)Feb. 2021(Actual)Aug. 2021(Actual)Feb. 2022(Actual)Aug. 2022(Forecast)Feb. 2023(Forecast)One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)3Management Highlights (Internal growth, external growth, finance, etc.)Executive SummaryInternal growth• Conducted operation assessing the status of each tenant, and realized rent increase even amid the COVID-19 crisis• Demand for less than 100 tsubo of area, which is the main area range of rental rooms of One REIT, remained strongExternal growthAcquired properties located near stations and contributing to the progress in tenant diversification through the third PO, and pursued the stability and growth potential of portfolioSixteenth Fiscal Period (Ended Aug. 2021)Seventeenth Fiscal Period (Ended Feb. 2022)FinancialIssued One REIT’s first green bond (10 year), and strengthened the financing base as well as contributed to the extension of average remaining periodPeriod-end occupancy rate99.2%97.6%Rent increase(Rent revision and tenant replacement) ¥3,730 thousand /month ¥1,694 thousand /month Rent gap (Note 1)-13.4%-10.8%10,0009,355 Rent revisionsReplacement(Thousands of yen, based on monthly rent)4,473 4,881 2,748 1,727 1,021 3,730 2,437 1,292 1,694 1,141 553 Aug. 2020Feb. 2021Aug. 2021Feb. 2022• Breakdown of Occupied and Vacated Sections (Based on the number of cases,Seventeenth Fiscal Period)Move-outsMove-ins(Cases)17442331533345Move-in area Less than 100 tsuboMove-out area Less than 100 tsuboMove-out area 100 tsubo or more5,00002021/9Sep. 20212021/10Oct. 20212021/11Nov. 20212021/12Dec. 20212022/1Jan. 20222022/2Feb. 2022• Overview of issuance of 5th bond (green bond)NameIssuance datePeriodIssue amount(Millions of yen)Interest rate(%)The 5th Investment Corporation Bonds(green bond)January 27, 202210 years3,0000.780Sixteenth Fiscal Period (Ended Aug. 2021)Seventeenth Fiscal Period (Ended Feb. 2022)Average interest rate (Note 2) 0.629%Average remaining period (Note 3) 3.23 yearsLTV (Note 4)47.2%0.622%3.60 years47.2%OtherESGGlobal index• As planned upon the announcement of the previous financialresults (October 15, 2021), realized the incorporation intoFTSE EPRA Nareit Global Real Estate Index Series, which isexpected to contribute to the expansion of investor base andimprovement of liquidity, at the time of the review in March2022• Supported TCFD recommendations and signed the PRI atMizuho Realty One (MONE), which is the parent company ofthe Asset Management Company, and further promotedefforts for ESG at the MONE Group•Identified “Key Issues (Materiality)”, and set KPIOne REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)4Impact of COVID-19, Etc. (1)Executive SummaryForecast and assumptions as of the previous settlement period (October 2021)Actual development and current situationThoughts on the future rental office market and management policyInfection status and business environment While social life gradually returns to normal in line with the progress in vaccinations, cannot anticipate the form of use of offices also returning to the pre-COVID-19 state Social life has not been normalized partially due to the restriction of commuting and continued recommendation of remote work due to the spread of variants (omicron variant, etc.) Continue the strategy of focusing on The increase rate of vacancy rates in the rental occupancy rate as the rental office market is yet to come out of the state of uncertaintyoffice market is slowing down compared with the past as it remained flat over the past six months Variants are less likely to cause severe symptoms, and it is assumed that social life will gradually become normalized On the other hand, post-COVID-19 office strategies at companies are gradually embodied, and it is assumed that movements such as relocations will gradually become apparent. Based on future large-scale supply, a moderate improvement of the rental office market condition is assumed and a strategy of focusing on occupancy rate will be maintainedOffice tenants While the strength of needs for middle-sized office buildings is apparent, tenant move-in and move-out movements continue. Focus on maintaining occupancy rate for the time being. The impact of downtime and free rent is assumed to be longer than usual and reflected into earnings forecasts as such Although vacancies have been filled as planned, the number of scheduled cancellations exceeds the assumption Due to the stagnation of tenant movements caused by the spread of variants as well as the increase in the number of competitive properties, a sign of extension of free rent and downtime is seen depending on the range of solicited area Also assume continuous tenant move-outs and focus on the maintenance of occupancy rates for the meanwhile, while feeling the solid demand for mid-sized offices Reflect the assumed cancellation rate, downtime and free rent on the earnings forecast by continuously regarding them as carefully made plansRetail (shop) tenants Focus on the prevention of cancellations through flexible response while taking certain budgetary measures Due to the spread of variants, a harsh business environment continues mainly for restaurant tenants. Alternative tenant demand is also limited Continue to focus on preventing cancellation of lease contracts through flexible response while taking measures to budget for responding to rent decrease to an extentProperty acquisitions Conduct selective investment by applying our discerning eye, seizing the timing that transaction volume increases toward March when fiscal periods end and when fiscal periods start While the supply volume of properties is not increasing, the funds of investors continue to flow into the market, and there is no change to the viewpoint of cap rate in a situation with a sense of overheating Focus especially on profitability and carefully conduct selective investments by making use of good judgement, based on the uncertainty of the current rental marketOne REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)5Impact of COVID-19, Etc. (2)Executive Summary There are still a certain number of move-ins and move-outs due to the elimination and consolidation of bases, and the movements of companies to review theiroffice strategies by taking the COVID-19 crisis as an opportunity seem to be continuing Although the number of responses to temporary rent decrease in the Seventeenth Fiscal Period (Ended Feb. 2022) increased year-on-year, the actual budgetfor responding to temporary decrease was about half of the forecast. From the next fiscal period onwards, the budget for responding to temporary decrease isestimated to be the same as that for the current fiscal period▌Move-Ins/Move-Outs (Result and Forecast)▌Status of Requests for Rent Reduction/Exemption, Etc. and Response Fiscal period ended Feb. 20221,126 tsuboFiscal period ending Aug. 2022 (Forecast) (Note 5)1,955 tsuboVacated area increased temporarily partly due to the move-out of major tenantsOn the other hand, new leasing also progressed(Based on the number of cases)RequestsOfficeRetail (shop) (Note 6)Under deliberation/negotiationResponse to temporary decreasePayment deferral361421Aug. 2021(End of 16th FP)00Feb. 2022(End of 17th FP)Aug. 2021(End of 16th FP)Feb. 2022(End of 17th FP)1100Aug. 2021(End of 16th FP)Feb. 2022(End of 17th FP)Move-ins(tsubo)718Aug. 2021(End of 16th FP)Feb. 2022(End of 17th FP)158165264234199232194182179107409258Move-outs(tsubo)54551674338333027720115330615263▌Recording and Result of Budget for Temporary Rent Decrease in Light of the COVID-19 Pandemic(Millions of yen)BudgetResult3111612840Fiscal period ended Feb. 20221,766 tsuboFiscal period ending Aug. 2022 (Forecast) (Note 5)2,181 tsuboSep.2021Oct.2021Nov.2021Dec.2021Jan.2022Feb.2022Mar.2022Apr.2022May2022Jun.2022Jul.2022Aug.202215 13 Feb. 2021(End of 15th FP)(Result)8 3 Aug. 2021(End of 16th FP)(Result)12 5 6 6 Feb. 2022(End of 17th FP)(Result)Aug. 2022(End of 18th FP)(Budget)Feb. 2023(End of 19th FP)(Budget)• The Seventeenth Fiscal Period (ended February 2022) continued to have a certain number ofrequests, including from office tenants, response to which was decided on a case-by-casebasis by taking into account the business elements such as status of sales, degree of difficultyin re-tenanting and other factors in a comprehensive manner• Set budget for responding to rent decrease based on the circumstances being that there wouldbe no additional request from the same tenant during the period that rent is reducedOne REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)61Notes in “Executive Summary”2Note in “Overview of Financial Results and Earnings Forecasts”(Note 1)“NAV per unit” is calculated by dividing the sum of the period-end unitholders’ capital andunrealized gain by the period-end outstanding number of investment units and is roundeddown to the nearest thousand yen. “Unrealized gain” is calculated by subtracting the totalbook value of owned assets from the total appraisal value of owned assets, as of the endof each fiscal period.Notes (1)(Note 1) For the end of each fiscal period, market rent is the expected new contract office rent unitprice for each property assessed by CBRE (if assessed in a range, then the medianvalue), and the rent gap (%) is the rate of divergence between the total monthly rentbased on the contracted rents of existing office tenants and the total monthly rent basedon market rent. The calculated value (%) is rounded to the first decimal place. The samecalculation method and display format are applied hereafter in this document.(Note 2)(Note 3)“Average interest rate” is calculated by seeking the weighted average at applicableinterest rates as of the end of each fiscal period according to the balance of interest-bearing debt and is rounded to the third decimal place. The same calculation method anddisplay format are applied hereafter in this document.“Average remaining period” is calculated by seeking the weighted average of the numberof years remaining until the principal repayment date of interest-bearing debt at eachpoint in time according to the balance of interest-bearing debt at that point in time and isrounded to the second decimal place. The same calculation method and display formatare applied hereafter in this document.(Note 4) LTV (%) is calculated with the formula [Period-end balance of interest-bearing debt /Period-end total assets] and is rounded to the first decimal place. The same calculationmethod and display format are applied hereafter in this document.(Note 5) Move-in/move-out area for the fiscal period ending August 2022 is based on theassumptions of the earnings forecast as of the date of this document and may differ fromthe actual move-in/move-out area.(Note 6)“Retail (shop)” tenants refers to restaurant, merchandise store and other such tenantsoccupying office buildings.One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)72Overview of Financial Results andEarnings ForecastsOverview of financial results: Seventeenth Fiscal Period (Ended Feb. 2022) Earnings forecasts: Eighteenth Fiscal Period (Ending Aug. 2022)Nineteenth Fiscal Period (Ending Feb. 2023) One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)8Overview of Financial Results | Seventeenth Fiscal Period (Ended Feb. 2022)Overview of Financial Results and Earnings Forecasts▌Comparison with Previous Period and Earnings Forecast *Compared based on the forecast figures as of September 8, 2021 A:Sixteenth Fiscal Period (Ended Aug. 2021)ActualB:Seventeenth Fiscal Period (Ended Feb. 2022)Forecast*C:Seventeenth Fiscal Period (Ended Feb. 2022)ActualComparison with previous periodC – AComparisonwith forecast*C – B(Millions of yen)Operating revenueLease business revenueOther lease business revenueGain on sale of real estate, etc.Dividends receivedExpenses related to rent business (Excludes depreciation)DepreciationNOI after depreciationGeneral and administrative expensesOperating profitRecurring profitNet income4,8893,68132787901,1295042,3743772,8782,6132,6124,3654,025340——1,2255562,5833482,2351,9311,930—1-8794,3844,03235101,2255533432,2621,9671,966-505+350+23-0+95+49-33-616-645-645234123+18+7+10—+0-0-2+21-4+26+36+36▌Comparison with Actual Performance of the Sixteenth Fiscal Period (Ended Aug. 2021) and the Seventeenth Fiscal Period (Ended Feb. 2022)Amount of Profit ChangeAbsence of gain on sale of real estate, etc.-879 million yenIncrease in NOI after depreciationIncrease in NOI after depreciation due to property acquisition+229 million yen+251 million yen Decrease in NOI after depreciation of existing properties-21 million yenDecrease in general and administrative expensesAbsence of taxes and public dues (non-deductible consumption tax)Increase in other commission expenses+33 million yen+42 million yen -4 million yen4Increase in non-operating expenses-25 million yen1Difference in NOI after depreciationDifference in other incomeDifference in property management feesDifference in utilities income and expensesOther difference in NOI after depreciationAmount of Profit Change+21 million yen+21 million yen +16 million yen-29 million yen+13 million yen+4 million yenDifference in non-operating expenses+10 million yen12323Dividends per unit¥7,546¥7,190¥7,326-¥220(-2.9%)+¥136(+1.9%)Difference in general and administrative expensesPeriod-end LTV47.2%47.2%0.0%NAV per unit (Note 1)¥277,000¥283,000+¥6,000Of which unitholders’ capital per unitapprox. ¥213,000Of which unrealized gain per unitapprox. ¥64,000approx. ¥220,000approx. ¥63,000Total investment amount per unit increased by 7,000 yen (+3.3%) as a result of the third POOne REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)92,604+229▌Comparison Between Forecast* and Actual Performance of the Seventeenth Fiscal Period (Ended Feb. 2022)Factors for Change in Dividends per Unit | Seventeenth Fiscal Period (Ended Feb. 2022)Overview of Financial Results and Earnings Forecasts▌Comparison with Previous Period (Ended Aug. 2021)¥7,546-¥132Absence of “temporary factors” in the previous period(Increase in gain on sale of real estate, non-deductible consumption tax, etc.)-¥223¥7,326-¥802+¥936Increase in finance-related costs due to new property acquisition-¥80Change in NOI after depreciation of existing properties+¥81Other changesAdjustment due to increase in number of investment unitsIncrease in NOI after depreciation due to new property acquisition▌Comparison with the Seventeenth Fiscal Period (Ended Feb. 2022) (initial earnings forecast)¥7,190+¥79Difference in other incomeDifference in property management feesDifference in utilities income and expenses+¥62-¥111Unit price of fuel adjustment cost rose more than assumed+¥38Difference in non-operating expenses+¥20Difference in general and administrative expenses and other factors +¥48Other difference in property-related income and expenditure(NOI after depreciation) Leasing-related expenses slid to the next fiscal period onwardsFeb. 2022(Actual)¥7,326Aug. 2021(Actual)Feb. 2022(Forecast)Total: +¥136Feb. 2022(Actual)One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)10Earnings Forecasts |Eighteenth Fiscal Period (Ending Aug. 2022) and Nineteenth Fiscal Period (Ending Feb. 2023) Overview of Financial Results and Earnings ForecastsSeventeenthFiscal Period (Ended Feb. 2022)ActualEighteenthFiscal Period (Ending Aug. 2022)ForecastNineteenthFiscal Period (Ending Feb. 2023)ForecastComparisonwith previousfiscal periodComparisonwith previousfiscal period(Millions of yen)Operating revenueLease business revenueOther lease business revenueDividends receivedExpenses related to rent business (Excludes depreciation)Leasing NOIDepreciationGeneral and administrative expensesOperating profitRecurring profitNet income1,2251,369+1433,1583,0705535684,4394,081358—1233742,1271,8261,825+55+48+7-0-87+14-102+31-134-141-1414,3844,03235103432,2621,9671,9664,4054,037368—1,3733,0325842,4473762,0711,7731,771-33-43+10—+4-38+16-54+1-55-53-5312NOI after depreciation 2,6042,502Dividends per unit¥7,326¥7,120Period-end occupancy rate97.6%97.2%-¥206(-2.8%)-0.4%¥6,60097.7%-520(-7.3%)+0.5%Certain area of move-outs anticipated in earnings forecasts▌Comparison with Actual Performance of the Seventeenth Fiscal Period (Ended Feb. 2022) and Forecast of the Eighteenth Fiscal Period (Ending Aug. 2022)Decrease in NOI after depreciationIncrease in taxes and public dues (for a total of 9 properties)Change in utilities income and expensesChange in property management feesOther change in NOI after depreciationIncrease in general and administrative expensesIncrease in asset management fee due to property acquisitions in the previous periodIncrease in other commission expenses123Increase in non-operating expenses-6 million yen▌Comparison of Forecast for the Eighteenth Fiscal Period (Ending Aug. 2022) with Forecast for the Nineteenth Fiscal Period (Ending Feb. 2023)Amount of Profit Change-102 million yen-62 million yen -18 million yen -16 million yen -5 million yen-31 million yen-21 million yen -5 million yenAmount of Profit Change-54 million yen-40 million yen +17 million yen-31 million yen-1 million yen1Decrease in NOI after depreciationDecrease in rent and common space charges revenueDecrease in property management feesOther decrease in NOI after depreciation2Increase in general and administrative expensesOne REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)11Factors for Change in Dividends per Unit |Eighteenth Fiscal Period (Ending Aug. 2022) and Nineteenth Fiscal Period (Ending Feb. 2023) Overview of Financial Results and Earnings Forecasts▌Comparison with Actual Performance of the Seventeenth Fiscal Period (Ended Feb. 2022) and Forecast of the Eighteenth Fiscal Period (Ending Aug. 2022)¥7,326Increase in taxes and public dues-¥231Expensing of fixed asset tax and city planning tax of a total of 9 properties (total acquisition price: 27 billion yen) started• Acquired in March 2021:3 properties (total acquisition price: 11.4 billion yen)• Acquired in September 2021: 6 properties (total acquisition price: 15.6 billion yen)Including the increase in repair expenses due to stricter recognition of capital expenditures (-65 yen)-¥67Change in utilities income and expenses-¥62Change in property management fees-¥21Other change in NOI after depreciation-¥117Change in general and administrative expenses-¥28Other changesLeasing-related expenses slid from the previous period¥6,800Assume that electricity fee will remain high¥7,120+¥320▌Comparison with Forecast of the Eighteenth Fiscal Period (Ending Aug. 2022) and Forecast of the Nineteenth Fiscal Period (Ending Feb. 2023)Assume the allocation of internal reservesAug. 2022(Forecast)¥6,600-¥152Change in rent and common space charges+¥65Change in property management fees-¥117Other change in NOI after depreciation+¥4Other changesAim to increase revenue by conducting early leasing as well as maintaining and improving occupancy rate One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)Feb. 2023(Forecast)12Feb. 2022(Actual)¥7,120Aug. 2022(Forecast)-¥320¥6,800Factors for Change in Dividends per Unit |Forecast for the Eighteenth Fiscal Period (Ending Aug. 2022)Overview of Financial Results and Earnings Forecasts As for the earnings forecast for the Eighteenth Fiscal Period (Ending Aug. 2022), the factors for change in dividends per unit when comparing the forecastfigures announced on September 8, 2021 (“previous forecast”) and the forecast figures announced today (“current forecast”) are as follows Rent and common space charges generally remain at the same level as that in the previous forecast. Regarding the downturn in profits, although someleasing-related expenses have been slid (postponed from the previous period) due to the review of leasing plans, temporary or single factors, such as the risein unit price of fuel adjustment costs (surge in electricity fee) and increase in repair expenses due to stricter certification of capital expenditures, exist.Therefore, dividends per unit is planned to be firmly maintained at 7,120 yen, which is the previous forecast figure, by allocating internal reserves▌Eighteenth Fiscal Period (Ending Aug. 2022): Comparison of Previous Forecast and Current Forecast Although some leasing-related expenses have been slid (postponed), rent and common space charges generally remain at the same level as that in the previous forecast¥7,120Change in rent and common space charges(-¥9 million)-¥34Increase in property management fees(-¥26 million)-¥97-¥107Change in utilities income and expenses(-¥28 million)-¥94Increase in repair expenses(-¥25 million)+¥10Other change in NOI after depreciation+¥2Change in general and administrativeexpenses and other factors¥7,120+¥320Assume the allocation of internal reservesTemporary factor (rise in unit price of fuel adjustment costs) and single factor (stricter certification of capital expenditures) exist¥6,800Aug. 2022(previous forecast)Aug. 2022(current forecast)One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)133Growth StrategyOne REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)14Portfolio Status (End of Seventeenth Fiscal Period) Newly acquired six properties through the third PO, resulting in a portfolio of a total of 31 properties with a total acquisition price of approximately 120Growth Strategy(Millions of yen)Property nameLocationAcquisition priceInvestment ratioAppraisal value(Note 1)Unrealized gain(Note 2)Period-end occupancy rate(Note 3)Building age (years)(Note 4)billion yenProperty type and regionTokyo Parkside BuildingKoto Ward, Tokyo10,45011,300sgndiliub eciffOONEST Kanda SquareChiyoda Ward, TokyoTachikawa Nishiki-cho BuildingTachikawa City, TokyoONEST Yokohama Nishiguchi BuildingYokohama City, Kanagawa PrefectureONEST Nakano BuildingNakano Ward, TokyoMinami-Shinagawa JN BuildingShinagawa Ward, TokyoMinami-Shinagawa N BuildingShinagawa Ward, TokyoMinami-Shinagawa J BuildingShinagawa Ward, TokyoHachioji SIA BuildingHachioji City, TokyoONEST Motoyoyogi SquareShibuya Ward, TokyoONEST Ueno Okachimachi BuildingTaito Ward, TokyoDaido Life Omiya Building Saitama City, Saitama PrefectureONEST Ikebukuro East BuildingToshima Ward, TokyoCrescendo BuildingYokohama City, Kanagawa PrefectureONEST Nishi-Gotanda SquareShinagawa Ward, TokyoONEST Hongo SquareBunkyo Ward, TokyoONEST Minami-Otsuka BuildingToshima Ward, TokyoD’sVARIE KANDA BLDGChiyoda Ward, TokyoKuramochi Building DaiichiSumida Ward, TokyoREID-C Chiba Ekimae BuildingChiba City, Chiba PrefectureShinkawa 1-chome BuildingHakozaki 314 BuildingChuo Ward, TokyoChuo Ward, TokyoAperto Higashi-Nakano BuildingNakano Ward, TokyoONEST Shin-Osaka SquareOsaka City, Osaka PrefectureKarasuma Plaza 21Kyoto City, Kyoto PrefectureONEST Nagoya Nishiki SquareNagoya City, Aichi PrefectureMY Kumamoto BuildingKumamoto City, Kumamoto PrefectureNagoya Fushimi Square BuildingNagoya City, Aichi PrefectureDaihakata BuildingFukuoka City, Fukuoka PrefectureHigobashi Center BuildingOsaka City, Osaka PrefectureDaido Life Mito Building Mito City, Ibaraki Prefectureaera natiloportem oykoTit deangsed-ecnandrOi.cte ,seitic7,3503,2643,1102,8802,1652,2922,0207307,5002,7003,0002,2002,4664,5005,4063,9002,1003,9514,4752,1001,7711,7104,6123,7002,3811,1524,81210,6508,9301,6506.1%2.7%2.6%2.4%1.8%1.9%1.7%0.6%6.3%2.3%2.5%1.8%2.1%8.7%3.8%4.5%3.3%1.8%3.3%3.7%1.8%1.5%1.4%3.8%3.1%2.0%1.0%4.0%8.9%7.4%1.4%9,1204,1703,8803,4302,2142,4602,4608678,9502,9603,2502,3702,5505,1105,4403,9502,1404,4504,6102,1301,8201,7806,3404,0903,5801,3205,46012,00010,4001,760136,3612,7691,0401,42880459375317545180191130148-6670371-322534581246085502,1672491,3101,3722856309763517,064100.0%84.6%100.0%100.0%100.0%95.9%100.0%97.1%96.6%100.0%100.0%100.0%100.0%100.0%95.3%86.5%100.0%100.0%74.9%93.0%85.3%100.0%100.0%100.0%100.0%100.0%98.1%100.0%100.0%99.5%96.8%97.6%14.8 30.7 38.8 27.5 31.6 27.6 29.6 28.4 29.8 35.8 30.3 30.4 34.6 30.4 34.1 34.2 30.8 26.0 29.8 24.4 32.2 30.9 27.8 29.7 35.3 30.8 34.3 34.3 46.4 44.4 32.2 32.5 Total • Average119,927100.0%One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)15120,000100,00080,000Portfolio StatusGrowth Strategy Due to the rise in appraisal value through the review of capital expenditure, etc. and the addition of unrealized gain of newly acquired properties, unrealizedgain of the portfolio increased by approximately 1.7 billion yen compared with the end of the previous period The investment ratio in the Tokyo metropolitan area reached approximately 70%, and the construction of a stable and sustainable portfolio progressed▌Portfolio Yields (Note5)▌Portfolio’s Unrealized Gain and Unrealized Gain Ratio(Million of yen)140,0005.40%5.56%5.55%NOI yield5.72%Asset size (Millions of yen)NOI yield after depreciation5.50%5.40%(Millions of yen)18,0004.44%4.58%4.59%4.72%4.54%4.45%119,927 Unrealized gain = Appraisal value – Book valueUnrealized gain (amount)Unrealized gain (ratio)16.1%16.4%17.0%16,00014.4%14.8%14.3%102,229 103,500 102,260 102,260 104,270 14,541 16,500 16,576 17,064 17,064 15,375 ReplacementReplacementPOReplacementReplacementPOAug. 2019Feb. 2020Aug. 2020Feb. 2021Aug. 2021Feb. 2022Aug. 2019(End of 12th FP)Feb. 2020(End of 13th FP)Aug. 2020(End of 14th FP)Feb. 2021(End of 15th FP)Aug. 2021(End of 16th FP)Feb. 2022(End of 17th FP)▌Investment Ratio (February 28, 2022 (End of 17th FP), based on acquisition price)Ordinance-designated cities, etc.31.6%Ratio by use100.0%Ratio by region68.4%Other11.2%Group III14.7%Group I33.9%Core investment target areaGroup II40.2%Tokyo metropolitan areaOrdinance-designated cities, etc.IIIIII8 central wards of Tokyo*23 wards of Tokyo (excluding the 8 central wards)Central areas of OsakaMajor areas in YokohamaCentral areas of NagoyaMajor areas in KawasakiCentral areas of FukuokaMajor areas in SaitamaCentral areas of SapporoMajor areas in Hachioji, Machida, Tachikawa, Musashino, Chofu and FuchuCentral areas of Sendai* The 8 central wards refers to Chiyoda, Chuo, Minato, Shinjuku, Shibuya, Toshima, Taito and Shinagawa wards.Office buildingsTokyo metropolitan areaTotal of core investment target area (I, II & III) 88.8%One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)165.5%4.5%3.5%2.5%1.5%14,00012,00010,0008,0000.5%6,00018%16%14%12%10%8%6%4%Portfolio Management Status | Overall StatusInternal Growth Strategy As for the operational status, the occupancy rate for the Seventeenth Fiscal Period (ended Feb. 2022) exceeded the previous forecast. The occupancy ratebased on the contracted area is expected to recover moderately after bottoming out in the Eighteenth Fiscal Period (ending Aug. 2022) In the entire portfolio, the average free rent (FR) period and average downtime (DT) period due to tenant replacements was shortened Steadily realized rent increase through upward rent revision and tenant replacement even amid the COVID-19 crisis, although rent increase decreased▌Portfolio Occupancy Rate▌Average FR Period (Note 10) and Average DT Period (Note 11)ActualBased on earnings forecasts (Note6)(Number of months)Occupancy rate (based on contracted area)Period-average CF occupancy rate (after excluding areas with free rent)99.2%(gray dotted lines: based on previous forecast)97.6%98.8%98.7%98.0%97.3%97.5%97.2%96.2%95.6%95.2%-81 tsubo-217 tsubo-640 tsuboCareful estimation of leasing terms considering the impact of COVID-19(Note 7)97.7%6.05.04.03.02.01.00.0Average FR periodAverage DT period3.1 2.7 0.4 Feb.20202.2 1.0 1.2 Aug.20203.7 2.3 1.3 Feb.20215.2 2.4 2.8 Aug.20213.8 2.2 1.6 Feb.2022▌Impact of Rent Revisions and Tenant Replacements on Lease Revenue (Office Buildings)(Thousands of yen, based on monthly rent)10,0009,355 Rent revisionsReplacementMove-inMove-out+915-996+2,035-2,252+1,126-1,766+1,955-2,181Average occupancy rate of portfolio during the period (Note 8)5,000Feb. 2021average98.9%Aug. 2021average99.0%Feb. 2022average98.2%Aug. 2022average97.2%Feb. 2023average97.7%Aug. 2020(End of 14th FP)Feb. 2021(End of 15th FP)Aug. 2021(End of 16th FP)Feb. 2022(End of 17th FP)Aug. 2022(End of 18th FP)(Forecast)Feb. 2023(End of 19th FP)(Forecast)0Tenant renewal rate (Note 9)(Feb. 2022 results)95.6%4,473 4,881 Aug.20202,748 1,727 1,021 Feb.20213,730 2,437 1,292 Aug.20211,694 1,141 553 Feb.2022One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)17100.0%95.0%Move-in/Move-out (Balance)90.0%(Tsubo)85.0%Portfolio Management Status | Rent Revision TrendsInternal Growth Strategy Realized certain rent increase even while the impact on office management continues due to the prolonged COVID-19 crisis Although the amount and number of increase for the revised rent in the Seventeenth Fiscal Period (ended Feb. 2022) fell below those in the previous period,they are expected to double from those in the Seventeenth Fiscal Period (ended Feb. 2022) in the Eighteenth Fiscal Period (ending Aug. 2022)▌Amount of Change in Revised Rents (Based on monthly rent)*Rent Revision in the Seventeenth Fiscal Period (Ended Feb. 2022)(Cases)Existing rent < Market rent(Under rent)Existing rent > Market rent(Over rent)(Thousands of yen)5,00031 4,881 23 3,120 4,0003,0002,0001,0000(1,000)6 1,021 14 1,371 (78)8 1,287 3 553 As of the end of Feb. 2022Aug. 2022Contracted3020100(Thousands of yen)100,00080,00060,00040,00020,0000(20,000)(40,000)91,206+¥553 thousands(+0.4%)Upward rent revision49,968Feb. 2022No downward revision(All rents remain unchanged)IncreaseDecreaseCases of increase (right axis)Feb. 2020Aug. 2020Feb. 2021Aug. 2021Feb. 2022▌Rent Revision (Ratio of the number of cases and leased area)(Based on the number of cases)(Based on leased area)▌Number of Cases of Rent Increase and Increase Rate Ratio of cases of rent increase(Cases)Tokyo metropolitan area Ordinance-designated cities, etc.17.8%Increase7.1%311813Feb.202023815Aug.2020336Feb.20211486Aug.20213Feb.20221210.4%5.9%2.6%Aug.2020Feb.2021Aug.2021Feb.2022Based on leased area(m²)Feb. 2022Unchanged92.9%Rent increase rate12.6%8.7%9.6%6.8%6.3%One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)18Portfolio Management Status | Trend on Tenant Replacement Internal Growth Strategy Rent gap for the Seventeenth Fiscal Period (ended Feb. 2022) was reduced as market rent decreased for some properties, but a rent gap of more than 10%was maintained. Expected to contribute to internal growth as well as the prevention of move-outs The move-out rates for the Eighteenth Fiscal Period (ending Aug. 2022) and the Nineteenth Fiscal Period (ending Feb. 2023) are assumed to be at areasonable level by taking into account the current actual results, but occupancy rate is expected to recover towards the Nineteenth Fiscal Period (ending Feb.2023)▌Average Rent (Note 12) (Month/tsubo) and Rent Gap ▌Increase Rate of Unit Rent upon Tenant Replacement TotalOrdinance-designated cities, etc.Tokyo metropolitan areaRent gap (Total)13,690 13,803 13,923 13,814 -3.0%(Increase rate)Tokyo metropolitan areaOrdinance-designated cities, etc.14,000 yen13,000 yen13,230 12,000 yen12,361 11,000 yen10,000 yen-17.2%12,642 12,722 12,912 12,869 11,257 11,387 11,439 11,630 11,585 -12.0%-10.8%39.8%43.8%38.8%43.5%25.6%24.2%20.2%11.8%28.7%18.1%Average of Feb. 202222.6%-6.0%-9.0%-15.0%-18.0%(Based on the number of cases)Ratio of cases of rent increase due to tenant replacement -16.5%-14.0%-13.4%Feb. 2020Aug. 2020Feb. 2021Aug. 2021Feb. 2022Feb. 2020(End of 13th FP)Aug. 2020(End of 14th FP)Feb. 2021(End of 15th FP)Aug. 2021(End of 16th FP)Feb. 2022(End of 17th FP)90.5%86.7%53.3%65.5%60.0%▌Move-out Rate (Note 13) (Annual rate) 退去率Move-out ratePeriod-end occupancy rate12.0%98.8%98.7%99.2%9.7%4.6%4.4%9.0%6.0%3.0%0.0%Total departed area × 365 / Number of operating days(Based on monthly rent)Move-out rate =Total leasable area (average of end of each month)(Thousands of yen)Increased rentDecreased rent▌Amount of Change upon Tenant Replacement 97.6%97.2%97.7%100.0%8.3%6.8%6.8%Certain area of “move-outs” anticipated in earnings forecasts95.0%5,0004,0003,0002,0001,0000(1,000)(2,000)90.0%85.0%80.0%3,813 4,473 3,852 1,929 (201)(1,414)1,612 (470)Feb. 2020Aug. 2020Feb. 2021Aug. 2021Feb. 2022Aug. 2020 Feb. 2021 Aug. 2021 Feb. 2022 Aug. 2022(Forecast)Feb. 2023(Forecast)One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)19Portfolio Management Status | Leasing StatusInternal Growth Strategy Aim for early filling of vacancies by conducting leasing in accordance with the characteristics of each property and market status Aim to acquire demand by dividing vacant rooms with an area of 100 tsubo or more as there is solid demand for rental rooms with an area of less than 100tsubo▌Leasing Status of Properties Handled PreferentiallyTokyo Parkside BuildingTachikawa Nishiki-cho BuildingONEST Hongo SquareKuramochi Building DaiichiShinkawa 1-chome BuildingEnd of 17th FPOccupancy rateArea subject to solicitation(Note 14)End of 17th FPOccupancy rateArea subject to solicitationEnd of 17th FPOccupancy rateArea subject to solicitationEnd of 17th FPOccupancy rateArea subject to solicitationEnd of 17th FPOccupancy rateArea subject to solicitation100.0%480 tsubo84.6%262 tsubo86.5%0 tsubo74.9%137 tsubo85.3%88 tsubo• A property located approximately a two-minutewalk from Kiba Station and serving as alandmark in the area• Held a preview for brokerage companies and45 people visited. Aim for early filling ofvacancies by appealing the enhanced beautythrough the renovation work ofthe commonuse area and dividing the rental rooms• Located at the south exit of Tachikawa Station,which is a terminal station in the western partof Tokyo. A property meeting the tenant needsin the area such as facing a main street andhaving a parking lot• There are continuous inquiries for the sectionto solicitation, and we aim for earlysubjectfilling of vacancies by appealing the grade anddividing the rental rooms• Located approximately a three-minute walkfrom Suidobashi Station on the Toei Mita Line,and the University of Tokyo is located in thesurrounding area.• Successfully filled the vacancies of the sectionsfor solicitation through the implementation ofrenovation work at the common use area andleasing taking into account the tenant attributein the area. The property is scheduled to befully occupied in May 2022• Located approximately a six-minute walk fromKinshicho Station. The rental rooms have aregularly shaped column-free space as well asindividual air conditioners and a card-keysecurity system.• Filling of vacancies for one of the two floorsthe end of Februarythat were vacant as of2022 has been completed. With periodicinquiries for the other floor, we aim for earlyfilling of vacancies by appealing the grade• A property located approximately a two-minutewalk from Kayabacho Station and offering hightransportation convenience as it is also withinwalking distance from Nihombashitransportation• Aim for early filling of vacancies by appealingthetheenhanced beauty through the renovation workof the common use areaconvenienceand• Occupancy rate is on an upward trend from79.5% as of the last day of the month when theproperty was acquired (September 2021)▌Breakdown of Occupied and Vacated Sections (Based on the number of cases, Seventeenth Fiscal Period)Move-outsMove-ins(Cases)2021/9Sep. 20212021/10Oct. 20212021/11Nov. 20212021/12Dec. 20212022/1Jan. 20222022/2Feb. 202217442331533345Move-in area Less than 100 tsuboMove-out area Less than 100 tsuboMove-out area 100 tsubo or more• While demand for more than 100 tsubo ofspace is weak, demand for less than 100tsubo of space is solid• Stimulated demand for rental rooms withan area of more than 100 tsubo by takingmeasures such as divisionOne REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)20Portfolio Management Status | Tenant DiversificationInternal Growth Strategy The top 10 tenants occupy 11.0% of the portfolio’s total leasable floor area, the average leased area of tenants is approximately 91 tsubo, and the ratio oftenants occupying less than 200 tsubo is approximately 89.2%. A portfolio with a high degree of tenant diversification was build▌Status of Top Tenants (End of 17th FP (Ended Feb. 2022))▌Status of Distribution of Tenants by Leased Area (Note 18) Name of tenantProperty occupiedLeased floor area (Tsubo)(Note 15)% of total leasable floor area (Note 16)1Nakanihon Engineering Consultants Co., Ltd.917.52 1.8% ONEST Nagoya Nishiki Square2 Original Engineering Consultants Co., Ltd.591.311.1% ONEST Motoyoyogi Square3 Uchida Esco Co., Ltd.590.501.1% Tokyo Parkside Building4(undisclosed) (Note 17)Business type: information system-related587.141.1% Tokyo Parkside Building4 Nippon Office Systems Ltd.587.141.1% Tokyo Parkside Building6 Maxell, Ltd.532.491.0% ONEST Motoyoyogi Square78(undisclosed) (Note 17)Business type: insurance-related507.301.0% REID-C Chiba Ekimae Building(undisclosed) (Note 17)Business type: General incorporated foundation484.110.9% Daihakata Building9 Kirindo Co., Ltd.465.680.9%ONEST Shin-Osaka SquareHigobashi Center Building(End of 17th FP (Ended Feb. 2022))300 tsubo or more 200 tsubo or more and less than300 tsubo5.1%5.8%Less than 100 tsubo70.6%100 tsubo or more and less than 200 tsubo18.6%By leased area (Based on the number of cases)Number of tenants554 tenantsAverage leased areaApprox. 91 tsubo/tenants▌Status of Distribution of Tenants by Business Type (Based on leased area, end of 17th FP (Ended Feb. 2022))1.4% 0.3%1.5%Service0.1%0.1%3.4%4.2%4.5%7.4%15.8%Ratio of areas less than 200 tsubo89.2%Wholesale/Retail/RestaurantManufacturingFinance/InsuranceConstructionTransport/CommunicationsReal estatePublic affairsIndividualOtherAgriculture10TOSHIBA LIGHTING & TECHNOLOGY CORPORATION459.620.9% Minami Shinagawa JN Building41.5%Total of top 10 tenants5,722.8111.0%• Moved out on February 28, 2022• Aim for early lease-up by appealing the enhanced beauty through the renovation work of the common use area and dividing the rental rooms19.9%Electricity, gas, water, heat supplyOne REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)21Portfolio Management Status | Track Records of Construction Work and BudgetInternal Growth Strategy In principle, One REIT has a policy to maintain the amount of its capital expenditure within a range of depreciation in each period and pursue optimum costmanagement by having examination of the work specifications, assessment of the amount, etc. conducted by an in-house expert body upon implementation However, capital expenditure exceeding depreciation may be planned while assessing the appropriate implementation period when effects such as theenhancement of lease revenue and tenant satisfaction through value enhancement work can be expected▌Depreciation and Capital Expenditure▌Breakdown of Capital Expenditure Budget (Fiscal Periods Ending Aug. 2022 / Feb. 2023)(Millions of yen)Depreciation Capital expenditureRed numbers: budget at the start of the periodWork itemEighteenth Fiscal Period (Ending Aug. 2022) Nineteenth Fiscal Period (Ending Feb. 2023) Amount of budget(Millions of yen)RatioRatioAmount of budget(Millions of yen)506504496553521568Value-enhancement work584Other than value-enhancement workTotal17636454032.7%67.3%100.0%18542160630.5%69.5%100.0%346411Feb. 2021(Actual)Aug. 2021(Actual)Feb. 2022(Actual)Aug. 2022(Forecast)Feb. 2023(Forecast)▌Examples of CAPEXONEST Hongo Square540kitchen and restroom606• Conducted renovation work of the common corridor on the 3rd floor, EV hall,• Due also to the successful appeal for the renovated portion, vacancies at thesections for solicitation on the 3rd floor were filled. The property is scheduled to befully occupied in May 2022.REID-C Chiba Ekimae Building• Conducted renovation work of the common use area on the fifth floor and eighthfloor as well as the existing lounge intending to improve both security and design• Aim to differentiate the property from competitive properties, and utilize it for earlyfilling of vacancies at sections where tenants are being solicitedOf which, construction work on the properties newly acquired upon the third PO (initial CAPEX)• Aug. 2022 (Forecast): ¥98 million• Feb. 2023 (Forecast): ¥33 million▌Change of Property Name (Feb. 2022 or after): Promotion of “ONEST” (Note 19)Property No.Former nameNew nameOT-21D’sVARIE HONGO BLDGONEST Hongo SquareOT-22MSB-21 Minami-Otsuka BuildingONEST Minami-Otsuka BuildingOne REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)226545708006004002000External Growth StrategyExternal Growth Strategy Disclosed English reports that have already been audited, and realized the incorporation into globalindex from March 2022 as planned upon theannouncement of the previous financial results (as of October 15, 2021) Promoted external growth strategy aiming to improve portfolio stability through the expansion of asset size and asset replacements by using sponsor support▌Incorporation into FTSE EPRA Nareit Global Real Estate Index Series▌Policy on External GrowthOverview of FTSE EPRA Nareit Global Real Estate Index Series• It is a globalindex calculated by FTSE Russellin cooperation with the European Real EstateAssociation (EPRA) and National Association of Real Estate Investment Trust (Nareit) and adoptedby many domestic and overseas institutional investors as a benchmark in international real estateinvestmentsExpected Effects Due to Incorporation • The expansion of investor base and improvement of liquidity of investment units are expecteddue to the incorporation into the benchmark in international real estate investments[Comparison of Each Index at Office REITs (Note 20)]Incorporated REITDaily average trading volume (Note 21)0(Millions of yen)4,0003,0002,0001,000100%60%40%20%0%Order of market capitalizationONE80%27.6% 29.0%30.8%17.4%16.7%45.7%23.8% 15.5%Composition of Unitholders62.4% 62.9%63.8% 60.8% 69.3%45.7%61.4% 53.4%21.4%34.9%(1) Sustainable growth of dividends (2) Disciplined external growth considering the portfolio and financial structureAim to improve the stability of portfolio through the expansion of asset size and asset replacement External growth strategy shifting the focus from “qualitative improvement” of the portfolio through asset replacement to “improvement of stability” of the portfolio through the expansion of asset size and asset replacement On the other hand, we plan to carefully consider property acquisitions focusing more on the stability of rental revenue based on the current rental market trend While continuing to set middle-sized office buildings as the core investment target, set a policy to focus on location and make selective investment in properties with building specifications that can be maintained and improved or that enhance value in the long term. Aim for flexible external growth utilizing properties with preferential negotiation rights based on the trends of the real estate and J-REIT marketsIndividualsDomestic financial institutionsForeignersOtherOne REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)23External Growth StrategyExternal Growth Strategy Newly acquired 6 properties (15.6 billion yen in total) situated in favorable locations and contributing to the progress in tenant diversification through the thirdPO in September 2021, and stability and growth potential of the portfolio enhanced Continued to acquire new properties contributing to the improvement of portfolio stability by using properties with preferential negotiation rights▌Overview of the Properties Newly Acquired upon the Third PO (6 Properties)Property NameKuramochi Building DaiichiREID-C Chiba Ekimae BuildingShinkawa 1-chome BuildingHakozaki 314 BuildingAperto Higashi-Nakano BuildingDaido Life Mito BuildingUseOffice buildingsLocationSumida Ward, Tokyo Chuo Ward, Chiba CityChuo Ward, TokyoChuo Ward, TokyoNakano Ward, TokyoMito City, Ibaraki Prefecture¥3,951 million¥4,475 million¥2,100 million¥1,771 million¥1,710 million¥1,650 million¥4,450 million¥4,610 million¥2,130 million¥1,820 million¥1,770 million¥1,750 millionAcquisition PriceAppraisal Value▌Properties with Preferential Negotiation RightsThird PO and acquisition of properties(September 2021)16th FP(Ended Aug. 2021)17th FP(Ended Feb. 2022)Asset size(Millions of yen)104,270Number of properties25Walking distance from station(Note 22)Approx. 4.5 minutesRatio of top 10 tenants12.2%Average leased areaApprox. 93 tsubo119,92731Approx. 4.4 minutes11.0%Approx. 91 tsuboProperty nameKagurazaka Plaza BuildingLocationKagurazaka, Shinjuku Ward, TokyoNearest StationApproximately a four-minute walk from Iidabashi Station on the Tokyo Metro Tozai Line, etc. and the Toei Subway Oedo LineTotal leasable area2,819.49 m²Minimum purchase priceThe purchase price deemed reasonable considering the internal rate of return (IRR) of the seller matching or exceeding the designated figurePeriod allowed for purchaseSeptember 1, 2020 to December 24, 2024One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)24Financial Statusperiod ended February 2022 LTV is planned to be managed in the 45%–50% range. Borrowing capacity with LTV up to 50% is approximately 7.4 billion yen as of the end of the fiscal Financial indicators such as average procured years improved as a result of refinancing including the issuance of green bondsFinancial Strategy▌Summary of Interest-Bearing Debt (As of end of 17th FP (Ended Feb. 2022))▌Composition of Interest-Bearing Liabilities (As of end of 17th FP (Ended Feb. 2022))Balance（Millions of yen）Share(%)Balance of interest-bearing debtAverage interest rateRatio of fixed-interest borrowingsExternal credit ratings [JCR]¥61,574 million0.622%91.9%LTV(Ratio of interest-bearing liabilities to total assets)Borrowing capacity (Note 23)(LTV = up to 50%)Average remaining periodSingle A(Positive)Averageprocured years47.2%Approx. ¥7.4 billion3.60 years5.62 years15.4%13.5%8.9%2.1%2.4%2.5%2.8%13.5%17.2%4.5%6.2%10.8%Number of financial institutions: 19▌Overview of Refinancing and Green Bond• Strengthened the financing base through the expansion of investor base interested in ESG investments by issuing OneREIT’s first green bond• Realized the extension of borrowing period while reducing financing costs[Overview of the Green Bond](Before refinancing)(After refinancing)5th Unsecured Investment Corporation Bonds (with pari passu conditions among specified investment corporation bonds) (Green Bond)[Floating interest rate]• 1 year¥3,000 million0.335%[Green Bond]• 10 years¥3,000 million 0.780%NameIssuancedateIssue amountInterestratePeriod10 years0.780%Use of fundsAllocated to the funds for early repayment of borrowings procured as funds for acquisition of the targeted assets meeting the eligibility criteria stipulated in the Green Finance Framework (*)Targeted assetsKuramochi Building Daiichi(BELS Certification: 4 Star)• The issue amount of the green bond was the largest among bonds of the same rating in fiscal 2021IssuerIssue amountInterest ratePricing datePeriodOne REIT¥3 billion0.780%January 21, 202210 yearsABCDE…¥2 billion0.720%November 11, 202110 years¥2 billion0.700%September 14, 202110 years¥2 billion0.670%July 30, 2021¥1.7 billion0.720%May 25, 202110 years10 years¥1.5 billion0.850%December 2, 202110 years8,3418,29210,5706,6503,8202,8001,7301,5501,5001,3201,1501,00080060050040040040025013.513.517.210.86.24.52.82.52.42.11.91.61.31.00.80.70.70.70.4Mizuho Trust & Banking Co., Ltd.Mizuho Bank, Ltd.Sumitomo Mitsui Banking Corporation Shinsei Bank, Limited Resona Bank, Limited Aozora Bank, Ltd. The Bank of Fukuoka, Ltd.The Nishi-Nippon City Bank, Ltd.The Bank of Yokohama, Ltd.San ju San Bank, Ltd.The Bank of Kyoto, Ltd.Nippon Life Insurance CompanyThe Dai-ichi Life Insurance Company, LimitedThe Chugoku Bank, Ltd.The 77 Bank, Ltd.The Chiba Bank, Ltd.The Higo Bank, Ltd.THE SHIZUOKA BANK, LTD.Investment corporation bondsOther 7 projects9,50015.4Total61,574100.0January. 27, 2022¥3,000 million[Comparison of Issue Amount of Investment Corporation Bonds with a Rating of A in fiscal 2021]Daishi Hokuetsu Bank, Ltd* Acquired “Green1 (F)”, the highest rating, from JCR as third-party …………assessmentOne REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)25Financial StatusFinancial Strategy▌Average Interest Rate / Average Remaining Period ▌LTV and Appraised LTV (Note 24)5.00 years4.00 years0.612%3.00 years2.00 years1.00 years2.02 years(Millions of yen)20,00015,00010,0005,0000Average remaining periodAverage interest rateLTVAppraised LTV0.636%0.649%0.632%0.629%0.622%47.5%46.3%45.7%45.7%46.0%Management standard: LTV 45%-50%47.2%47.2%3.22 years3.15 years3.23 years39.8%39.8%39.9%3.70 years3.60 years0.4%42.5%41.0%41.5%41.7%0.8%0.6%52.5%50.0%45.0%40.0%0.2%37.5%Aug. 2019(End of 12th FP)Feb. 2020(End of 13th FP)Aug. 2020(End of 14th FP)Feb. 2021(End of 15th FP)Aug. 2021(End of 16th FP)Feb. 2022(End of 17th FP)Aug. 2019(End of 12th FP)Feb. 2020(End of 13th FP)Aug. 2020(End of 14th FP)Feb. 2021(End of 15th FP)Aug. 2021(End of 16th FP)Feb. 2022(End of 17th FP)▌Diversification Status of Repayment Periods and Borrowing Interest Rate (As of end of 17th FP (Ended Feb. 2022))0.750%0.718%0.820%0.860%0.780%0.635%0.543%0.400%0.530%0.577%0.447%Weighted average interest rate: 0.622%3,000 3,000 2,000 Extend remaining borrowing periodDiversify repayment dates6,000 6,000 1,500 10,000 7,974 1,500 9,200 7,900 2,000 1,500 3,000 Feb.2022Aug.2022Feb.2023Aug.2023Feb.2024Aug.2024Feb.2025Aug.2025Feb.2026Aug.2026Feb.2027Aug.2027Feb.2028Aug.2028Feb.2029Aug.2029Feb.2030Aug.2030Feb.2031Aug.2031Feb.20321.0%0.8%0.6%0.4%[Legend]Floating interest rateFixed interest rate*Investment corporation bondsInvestment corporation bond(Green bond)Applied interest rate* Includes borrowings whose interest rates are substantially fixed with the interest rate swapOne REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)264Efforts for ESGOne REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)27Efforts for ESG: OverallESG▌Identification of Key Issues (Materiality) and Setting of KPI at the ▌Sustainability Promotion StructureMONE Group• Identify key issues (materiality) that are addressed as a group and set KPI for eachissue towards the realization of sustainable growth of the MONE Group• Intend to promote each effort by regularly confirming the status of progress of effortsthat are made to achieve the KPI and taking necessary measures• For details on the key issues (materiality), KPI and such, please refer to the followingpages▌Acquisition of GRESB Real Estate Assessment• Following on from 2020, acquired GRESB Rating of “4 Stars” in2021, too• Continue to conduct the efforts for ESG by sharing the issueswith the related people inside the company▌Support for TCFD Recommendations• Established a substantiality promotion structure at the MONE Group• Conduct deliberations on the setting of goals on sustainability efforts, monitoring andother matters at the Sustainability Promotion Council, which is the advisory body ofthe president, at One REIT’s Asset Management Company MREITBoard of DirectorsSustainability Promotion Council• Establishment of medium-to long-term policies and goals• Setting and change of annual goals

• Goal and proposed measure of corporations as a group• Confirmation of implementation status and holding of in-house study MONEsessionSustainability Committee

• Sustainability policy, strategy and system• Accession to and signature of various initiatives, etc.• Goal of entire group (annual and long-term)• Confirmation of implementation status of entire group• Monitoring of activities of each company• Report on activities (collating with and promotion of materiality)▌Signature of the Principles for Responsible Investment (PRI)• Announced the supportthe Task Force on(TCFD)Climate-relatedrecommendations in April 2022 at MONE, andjoined the “TCFD Consortium”Financial Disclosuresfor• TCFD: The “Task Force on Climate-relatedFinancial Disclosures” established by the FinancialStability Board (FSB) for the purpose of consideringthe disclosure of climate-related information andresponse by financialinstitutions, and announcingthe recommendations to the disclosure of risks andtotoopportunitiescompanieschangeclimaterelatedMREITBoard of DirectorsChief Executive Officer of MREITSustainability Promotion Officerterm policies and goals of the group• Setting and change of annual goals• Determination of important matters on MREIT among the medium-to long-Sustainability Promotion Council[Members of Promotion Council]](Operating Officer) Head of Investment & Asset Management Department of designated REITs, Investment & Asset Management Division, Corporate DivisionObserver: MONE Facility Management Division, MONE Corporate Division, etc.• Supported the basic idea on PRI and signed thePRI in April 2022 at MONE• PRI: An international network ofinvestors forrealizing the principles for responsible investmentin 2006.proposed by the U.N. Secretary-GeneralProposes the incorporation of ESG issues into thedecision-making on investments

• Goal and proposed measure• Confirmation of the implementation status of measuresInvestment Committee

• Formulation and revision of asset management planReportingMonitoringDesignation of targeted REITs and instructions on efforts One REIT, Inc. Presentation Material for the Seventeenth Fiscal Period (Ended Feb. 2022)28Efforts for ESG: Key Issues (Materiality) and KPI of the MONE GroupMaterialitySpecific goalsKPIESGRelated SDGs(Note 1)Response to climate change• Realization of a decarbonized society• Establishment of a solid business basetnemnorivnE[Target of the MONE Group]• Signature of PRI (fiscal 2022)• Support for TCFD (fiscal 2022)•• Reduction of GHG emission at the MONE Group (including real estate under management): 100% (fiscal 2050)Information disclosure in line with the TCFD framework (fiscal 2025)• Development of system responding to issues on climate change (fiscal 2022)••Implementation and disclosure of scenario analysis targeting One REIT (fiscal 2022)Implementation of scenario analysis for all businesses of the MONE Group (fiscal 2025)[Target of One REIT]• Reduction of GHG emission (intensity): (comparison with fiscal 2014)40% (fiscal 2030), 100% (fiscal 2050)• Reduction of water consumption (intensity): (comparison with fiscal 2014) 10% (fiscal 2030)• Number of buildings introduced with unified waste management method: 100% (fiscal 2025)• Scenario analysis and disclosure (fiscal 2022) (single fiscal year)Pro