NIPPON REIT Investment : Performance Report (January - March 2022)

NIPPON REIT Investment Corporation TSE code：3296

Performance Report January-March 2022

April 28, 2022

NIPPON VISION

Serious, Steady, Solid.

Occupancy Rate and Free Rent Period Trend

◆ The occupancy rate is steady for the 1st half of the 20th period; retail sector is expected to reach 100% occupancy in June

◼ Occupancy rate trend and forecast

Total

Office

Residence

Retail

1900年1月

100.0%

90.0%

80.0%

1900年1月

1900年1月

1900年1月

1900年1月

1900年1月

1900年1月

1900年1月

1900年1月

1900年1月

1900年1月

1900年1月

1900年1月

2021	2022
Jun.	Jul.	Aug.	Sep.	Oct.	Nov.	Dec.	Jan.	Feb.	Mar.	Jun. (Forecast)
97.8%	97.4%	97.0%	96.7%	96.8%	96.9%	98.1%	97.6%	97.4%	97.5%	98.2%	Total
98.1%	97.6%	97.2%	96.9%	97.0%	97.2%	98.6%	98.4%	98.2%	98.0%	98.6%	Office
97.1%	97.0%	96.6%	96.1%	96.3%	96.3%	97.3%	96.7%	96.4%	97.0%	97.2%	Residential
97.8%	97.8%	97.8%	100.0%	100.0%	97.7%	97.7%	88.9%	88.9%	88.9%	100.0%	Retail

◼ Trend of office occupancy rate based on rent

◼ Trend of average free rent period for office

0month

5month

4month

3month

2month

1month

Trend od Rent Increase

◆ Rent growth at the timing of both the tenant replacement and rent renewal continue in a declining trend due to weak market rent and stagnant economic activities

◼ Monthly rent increase/decrease upon tenant replacement

◼ Trend of rent renewals based on floor space3

●Office

Total rent increaseTotal rent decrease

Rent change ratio 1

¥.000/month

26.2%

25.8%

10,000

7,500

5,000

2,500

0

▲ 2,500

▲ 5,000

9,188	7,015	5,154	678
1.3%	747
0 0	▲ 4,394	▲ 3,302	▲ 905
▲ 6.4% ▲ 1.7%

28%

21%

14%

7%

0%

▲7%

▲14%

●Residence 2

18th period

16th period

17th period

19th period

20th period

Jun.2020

Dec.2020

Jun. 2021

Dec. 2021

First half

◼ Status of rent increase/decrease at contract renewals

Total rent decreaseTotal rent increase

Rent increase ratio4

¥.000/month 1,500 1,000

3.1%
1,401	958	2.3% 676
600	0.6%	1.2%	392
▲ 34 ▲ 151	▲ 765	▲ 371 ▲ 85

Total rent increaseTotal rent decrease5.8%

Rent change ratio 1

10,500

500

0 ▲ 500 ▲ 1,000

6% 4% 2% 0% ▲ 2% ▲ 4%

9,000

7,500

6,000

4,500

3,000

1,500

0

▲ 1,500

7.1%	7.5% 7.3%
6.0%
10,940	5.2% Rent increase
ratio upon
contract renewals
2,082	886 297 61
0 0 0 0 0

12.0%

10.5%

9.0%

7.5%

6.0%

4.5%

3.0%

1.5%

0.0%

▲1.5%

(¥,000/month)

16th period 17th period 18th period 19th period 20th period

Jun.2020

Dec.2020

Jun. 2021

Dec. 2021

First half

• 1. "Rent change ratio" is (total rent after tenant replacement - total rent before tenant replacement) /(total rent before tenant replacement). Figures are rounded to the first decimal place.

• 2. Residential properties that are not subject to fixed rent master lease.

• 3. In case where tenant categorized as "unchanged" in each period accepted rent increase in the following period, the area subject to rent renewal of the tenant is included the area of the "unchanged" and "increased" in the relevant period.

• 4. "Rent increase ratio" is (total rent increase after rent renewal - total rent before rent renewal) / (total rent before rent renewal). Figures are rounded to the first decimal place.

2

Cancellation Notices and Leasing Status

Property name

Occupancy rate

Vacancy/lease statusHiroo Reeplex B's

100.0%1 floorAssumed occupancy rate1

Itohpia Iwamotocho 1-chome Building

cancellation received

182 tsubo cancellation received

Toranomon Sakura Building FORECAST Gotanda WEST

MK Kojimachi Building

Otakibashi Pacifica Building

vacant

Homat Horizon Building

cancellation received cancellation received

REID-C Megurofudomae

Nishi-Gotanda 8-chome Building

FORECAST Shin- Tokiwabashi Itohpia Iwamotocho 2-chome Building

Kanda Ocean Building

NORE Fushimi

100.0%1 space73 tsubo

vacant cancellation received cancellation received cancellation received cancellation received cancellation received

100.0%1 space4 tsubo

100.0%

1 space 34 tsubo

97.0% (Sep. 2022)

FORECAST Shinjuku SOUTH

100.0%

1 space

135 tsubo cancellation received

96.8%

(Apr. 2022)

Sannomiya First Building

100.0% 3 spaces 79 tsubo

1 space52 tsuboBECOME SAKAE

88.6%

1 floor 159 tsubocancellation received cancellation received vacant

96.5% (Sep. 2022)

96.3% (Aug. 2022)NORE Meieki

94.7%

1 space 68 tsubovacant

94.7% (Mar. 2022)

1 space

23 tsuboThe SquareGreenOak Takanawadai

94.9%

85.8%

1 space 29 tsubo

1 floor

58 tsubo

1 floor 112 tsubovacant cancellation received cancellation received Vacant

93.5% (Sep. 2022)

92.7%

(Jun. 2022)Property name

Occupancy rate

Towa Higashi-Gotanda Building

100.0%

1 space 72 tsuboFORECAST Shinagawa

84.2%

1 floor 108 tsubo 1 space 70 tsuboOmiya Center Building

98.6%

3 spaces 386 tsubo 1 space 60 tsubo

FORECAST Nishishinjuku REID-C Gotenyama Building

100.0%

88.6%

TK Gotanda Building

100.0%

2 floors 203 tsubo

FORECAST Ningyocho PLACE

87.1%

ANTEX 24 Building

100.0%

2 floors 181 tsubo

GreenOak Kayabacho

86.4%

FORECAST Takadanobaba Nishi-Shinjuku Sanko Building

100.0%

83.5%

1 space 123 tsubo

REID-C Iidabashi Building

100.0%

2 floorsGotanda Sakura Building

89.3%FORECAST Mita

100.0%

Hatchobori River Gate

66.7%

2 floors

Properties in which full occupancy is expected due to conclusion of new lease contract or receival of tenancy application for the subject space or unit.

1 floor

1 floor

1 floor

1 floor

1 floor 123 tsubo

1 floor 277 tsubo

1 floor 1 floor

1 floor 116 tsubo

1. Assumed occupancy rate is the assumed occupancy rate after the realization of all tenancy applications and cancellation notices as of the end of Mar. 2022.

cancellation received

91.9% (Sep. 2022)vacant cancellation received

89.8% (Oct. 2022)cancellation received vacant

89.7% (Sep. 2022)

64 tsubocancellation received

89.0% (Oct. 2022)

37 tsubovacant

88.6% (Mar. 2022)

cancellation received

87.6% (Jul. 2022)

123 tsubo

72 tsubocancellation received cancellation received cancellation received vacant

87.1% (Mar. 2022)

86.7% (May 2022)

86.4% (May 2022)cancellation received

83.8% (Aug. 2022)vacant

83.5% (Mar. 2022)

51 tsubocancellation received

80.1% (Sep. 2022)

48 tsubo 48 tsubo

vacant cancellation received cancellation received

78.5% (Apr. 2022)

78.4% (May 2022)

76 tsubovacant

66.7% (Mar. 2022)

Engineering Management: Plans and Implementation Status

◆ Engineering Management, another driver of internal growth, is planned and carried out in a planned and consistent manner

◼ Implemented measures from Jan. to Mar. 2022

Revenue increase through installation of cell phone ● base station

《NORE Meieki and other 3 properties》

• • Total annual revenue increase of approx. ¥3.29mm is expected through installation of new antennas for 5G.

◼ Planned measures to be implemented after Mar. 2022

《FORECAST Shinjuku SOUTH》

Revenue Increase by replacement of coin- operated parking space company

• • Revenue increase is expected by replacing coin-operated parking space company

●● ●●

《LAPUTA KUJO、DeLCCS KASAI》

Revenue increase through renewal of residential units

• • Total annual revenue increase of ¥0.91mm is expected from rent increase of renewed units

《6 properties》

Increase in commission rate through replacement of vending machines

• • Total annual revenue increase of approx. ¥0.69mm is expected from increase in the commission rate by replacement of vending machines

《Shibakoen Sanchome Building, FORECAST Waseda

FIRST》

Revenue increase through installation of share bike and electric kickboard stations

• • Total annual revenue increase of approx. 0.52mm is expected from installation of share bike and electric kickboard station in the property premises.

《8 residential properties》

Introduction of contactless delivery system

• • Improving tenants' satisfaction by installing contactless delivery system

Measure to increase revenue

Measure to reduce expenseMeasure to improve tenant satisfaction

Measure with environmental consideration

●● ●●

《Tower Court Kitashinagawa and other 4 properties》

Revenue increase through installation of 5G antennas for phone carriers

• • Revenue increase is expected through installation of 5G antennas

《LAPUTA KUJO、DeLCCS KASAI、Primegate Iidabashi》

Revenue increase through renewal of residential units

• • Revenue increase is expected from rent increase of renewed units

《DeLCCS KASAI》

●● ●●

Revenue increase through subleasing of parking space

• • Revenue increase is expected by subleasing of parking space

《20th period Status of Engineering Management Implementation（1）》

400

●● ●●

●

300 200 100

0

371

82 129 25

21

Budget

Jan.

Feb.

Mar.

Apr.

MayJun.

(¥mn)

1. Total amounts of Planned capital investment and Strategic value-enhancing investment are stated. Furthermore, the figures may change when accounting items will be determined.

●● ●●

●● ●●

●● ●●

Total in 20th period