NIPPON REIT Investment : Notice Concerning Transfer of an Asset

February 17, 2022

For Immediate Release

Real Estate Investment Trust Securities Issuer:

NIPPON REIT Investment Corporation

1-18-1 Shimbashi, Minato-ku, Tokyo

Toshio Sugita

Executive Officer

(Securities Code: 3296)

Asset Management Company:

Sojitz REIT Advisors K.K.

Toshio Sugita

President, Director & CEO

Contact:Takahiro Ishii

General Manager

Corporate Planning Department

Finance & Planning Division

(TEL: [phone])

Notice Concerning Transfer of an Asset

NIPPON REIT Investment Corporation ("NIPPON REIT") announces that Sojitz REIT Advisors K.K., the asset manager of NIPPON REIT (the "Asset Manager"), made decision today on the transfer of an asset (the "Transfer") as follows.

1. Overview of the Transfer

1. Property name
2. Assed to be transferred
3. Expected transfer price (Note 1)
4. Assumed book value (Note 2)
5. Balance between expected transfer price and assumed book value (Note 3)
6. Closing date
7. Scheduled transfer date
8. Transfer counterparty (Purchaser) (Note 4)
9. Settlement method

• Sunworld Building (the "Property")
• Real estate trust beneficiary right
• 1,430 million yen
• 1,262 million yen
• 167 million yen
• February 17, 2022
• February 28, 2022
• Not disclosed
  Full payment upon delivery

(Note 1) "Expected transfer price" is the price of trust beneficiary interests in real estate stated on the sales agreements of real estate trust beneficiary rights, which does not include consumption tax, local consumption tax, various expenses required for the Transfer, and is rounded down to the nearest million yen. The same shall apply hereinafter.

(Note 2) "Assumed book value" is the figure which the Asset Manager calculated based on the book value as of the end of the 19th period (ended December 2021), as well as capital expenditure and depreciation cost that are expected until the closing date. Figure is rounded down to the nearest million yen and the same shall apply hereinafter.

(Note 3) "Balance between expected transfer price and assumed book value" is a reference amount which is calculated difference between disposition price and assumed book value, differs from gain or loss for accounting. It is rounded down to the nearest million yen.

(Note 4) Not disclosed because consent has not been obtained from the purchaser. It is a domestic company, and does not fall under the category of interested persons under the Article 201 of the Act on Investment Trusts and Investment Corporations and Article 123 of the Order of Enforcement thereof, as well as of interested persons

stipulated in the Asset Manager's internal rules, "Rules on Transactions by Interested Persons".

1

2. Reason for the Selection of the Asset to be Transferred

1. NIPPON REIT recognizes that it is an essential strategy to implement asset replacement at the right time in order to maintain and improve portfolio competitiveness from a medium-tolong-term perspective while expanding AUM.
2. The assets to be transferred were selected based on "Tiering-PJ" analyses which is conducted annually as part of the Asset Manager's medium-tolong-term management strategy. In order to maintain and improve portfolio competitiveness with a view to manage in a medium-to-long-term perspective of (a) optimizing capex plan based on the building age, and (b) eliminating concerns about a decline in internal growth potential in property analysis on profitability, liquidity and property characteristics. As a result, decision has been made to end the management of the Property at this time and to realize the unrealized gain of the Property through sale for the maximization of unitholder value.

2

3. Property to Be Transferred

A-42: Sunworld Building

i. Overview of the Property

Type of specified asset	Trust beneficiary interests in real estate
Scheduled transfer date	February 28, 2022
Trustee			Mizuho Trust & Banking Co., Ltd
Trust establishment date	November 10, 2006
Trust expiration date	January 31, 2025
Location	1-6-2,Kita-Horie,Nishi-ku, Osaka, Osaka
(indication of residential address)
		Parcel number	1-24-5,Kita-Horie,Nishi-ku, Osaka, Osaka and other 4 parcels
		Building coverage ratio /	100% (Note 1) / 800%
Land		Floor area ratio
		Use district	Commercial district
		Site area	388.90 m2
		Type of ownership	Ownership, Leasehold
		Construction completion	March, 1993
		Structure / Floors	Steel-framed,Steel-framed reinforced concrete structure with
		flat roof / B1/11F
Building
	Use	Office
		Total floor space	3,314.58 m2
		Type of ownership	Ownership
Master lease company	NIPPON REIT
Type of master lease	Rent guaranteed (Note 2)
Appraisal value	1,310 million yen (as of December 31, 2021)
Real estate appraiser	Japan Real Estate Institute
PML			12.0%
Status of leasing
	Leasable floor space	3,012.86 m2
	Leased floor space	3,012.86 m2
			100%		100%	100.0%	100.0%
	Occupancy rate	(as of the end of		(as of the end of	(as of the end of	(as of the end of
			Sep. 2021)		Oct. 2021)	Nov. 2021)	Dec 2021)
	Total number of tenants	1
	Total rent income (annual)	Not disclosed (Note 3)
	Deposits, etc.	Not disclosed (Note 3)
Special notations	Not applicable
(Note1)	The building coverage ratio is essentially 80%, but it is 100% due to relaxation for fire-proof structures within
	commercial districts and fire prevention districts.
(Note2)	The master lease agreement scheduled to be concluded for the Property falls under the category of a
	pass-through lease agreement. However, it is indicated as being "rent guaranteed" as the sub lessee
	scheduled to sublease the entire property from the master lease company shall pay a fixed amount of rent.
(Note3)	Not disclosed because consent has not been obtained from the sublease.

3

ii. Outline of Appraisal Report

Property name	Sunworld Building
Appraisal value	1,310 million yen
Appraiser	Japan Real Estate Institute
Date of value	December 31, 2021
						(Thousand yen)
				Details		Outline
Appraisal Value by	1,310,000		Calculated by associating value based on the capitalization method
capitalization method			and that based on the DCF method, both of which are considered to
						have the same level of canonicity.
	Appraisal value using	1,320,000
	the direct capitalization
	method
		Gross operating	87,528
		revenue
			Potential gross	87,528
			income
			Total of vacancy	0		Vacancy losses are not recorded as the lease contract is virtually
			losses, etc.			submaster lease contract of the entire building
		Operating	23,371
		expenses
			Building	5,583		Recorded in consideration of the individuality of the target property, by
			management			reference to building management fees of similar properties, and the
			fees			actual amount of the past years.
			Utilities	0		Not recorded as utility costs are borne by tenants
			Repairs and	2,047		Recorded, in consideration of the actual amount of the past years,
			maintenance			maintenance plan, a level of such costs of similar properties and an
			costs			annual average of repairs, maintenance and renewal costs in the
						engineering report
			Property	1,200		Recorded in consideration of the rate of fees for similar properties and
			management			the individuality of the target property, by reference to rates based on
			fees			the terms and conditions.
			Leasing cost	0		Determined not to record leasing cost based on the submaster lease
						contract.
			Taxes	14,417		Recorded based on tax related materials.
			Insurance	124		Recorded in consideration of premium under insurance contract, and
						insurance rates of similar properties, etc.
			Others	0		There are no other expenses that should be recorded.
		Net operating	64,157
		income
			Non-operating	435		Assessed by multiplying the deposits based on the submaster lease
			income			contract by occupancy rate, and by management yield. A level of
						management yield considered to be appropriate is 1.0% in
						consideration of both levels of interest rates for management and
						financing.
			Capital	4,988		Assessed in consideration of a level of capital expenditure by similar
			expenditure			properties, age of the building and an annual average of repairs,
						maintenance and renewal costs in the engineering report, based on
						an assumption that expected expenditure is accumulated every term
						on average.
		Net income	59,604
		Capitalization rate	4.5%		Assessed by adding and subtracting spreads attributable to
						location, building and other conditions of the property as well as
						market capitalization rate of the area in which the property is
						located, and by taking into account future uncertainties and the
						transaction yields of similar properties and other aspects.
	Appraisal value using	1,300,000
	the discount cash flow
	method
		Discount rate	4.3％		Assessed in consideration of the individuality of the target property
						comprehensively, by reference to investment yields of similar
						properties.
		Terminal rate	4.7％		Assessed in consideration of future trends of investment yields, risks
						in the target property as an investment target and general forecasts for
						economic growth and trends in property prices and rents, etc.
						comprehensively, by reference to investment yields of similar
						properties.

4

Appraisal value by cost	1,290,000
method
	Proportion of land	85.4％
	Proportion of building	14.6％

Other matters to which the appraiser paid attention in appraisal

Determined the appraisal value using the Income Capitalization Approach Value with the Value Calculated Using the Cost Method used only for reference. The decision is made that the Income Capitalization Approach Value is more persuasive because the price determination process has been accurately reproduced with respect to earnings.

4. Explanation of matters stated in "3. Property to Be Transferred"

• "Location (indication of residential address)" is the indication of residential address of the Property. In addition, if there is no indication of residential address, the building location in the registry (if several, then one of the locations) is stated.
• "Parcel number", lot number in the registry (if several, then one of the locations) is stated.
• "Building coverage ratio" and "floor area ratio" of land are, in principle, the figures provided in accordance with related laws and regulations, such as the Building Standards Act and the City Planning Act, and rounded to the nearest whole number. Depending on a specified asset, there are cases where "Building coverage ratio" and "floor area ratio" are subject to certain relaxation measures or restriction measures. In addition, where there are several floor area ratios that apply to a site, the floor area ratio is stated by converting to one that applies to the entire site.
• "Use district" of land is the type of use district listed in Article 8, Paragraph 1, Item 1 of the City Planning Act.
• "Site area" of land is based on that stated in the registry and may differ from the present state.
• "Type of ownership" of land is the type of rights of the real estate held by the trustee of the Property.
• "Construction completion" of building is the date of new construction in the registry. In addition, the date of extension, reconstruction, etc. are also stated, if any.
• "Structure / Floors" of building is based on that stated in the registry.
• "Use" of building is the major type of building in the registry.
• "Total floor space" of building is based on that stated in the registry, and annex buildings are separately stated, if any.
• "Type of ownership" of building is the type of rights of the real estate held by the trustee of the Property.
• "Master lease company" is the company that has concluded or the company that is scheduled to conclude a master lease agreement that is valid as of today for the Property.
• "Type of master lease" is the main type of master lease agreement concluded or scheduled to be concluded as of today, where "pass-through" is a master lease agreement in which the master lease company shall pay the same amount of rent as the rent payable by end tenants to the master lease company and "Rent guaranteed" is a master lease agreement in which the master lease company shall pay a fixed amount of rent.
• "Appraisal value" is the appraisal value stated in the appraisal report prepared by Japan Real Estate Institute and rounded down to the nearest million yen. The appraisal value does not guarantee the possibility of acquisition or disposition with the price. Furthermore, there is no special interest among the Appraiser, NIPPON REIT and the Asset Manager.
• "PML" is the PML (Probable Maximum Loss) calculated in the evaluation of seismic risk analysis conducted by Tokio Marine dR Co., Ltd. as requested as part of due diligence upon acquisition of the real estate trust beneficiary right by NIPPON REIT, and rounded to one decimal place. Furthermore, "Probable Maximum Loss" means the probable maximum loss that may result from an earthquake and, herein, refers to the extent of damage that may be suffered due to an earthquake of the assumed maximum scale (earthquake with a probability of occurring once in 475 years = earthquake with a 10% probability of occurrence in 50 years) in the assumed scheduled use period (50 years = useful life of a general building), expressed as the estimated cost of restoring such damage as a percentage (%) of the replacement cost.
• "Status of leasing" is based on the figures and information provided by the previous owner or the trust beneficiary, etc. regarding the content, etc. of the lease agreement, etc. that is valid as of the end of December 2021, unless otherwise stated.
• "Leasable floor space" is the floor space regarded as being available for leasing based on the lease

5