Tokyu REIT : FP ended Jan. 2024(FP 41) Financial Report

March 15, 2024

1-12-1, Dogenzaka, Shibuya-ku, Tokyo 150-0043, JAPAN

FINANCIAL REPORT

FOR THE FISCAL PERIOD ENDED JANUARY 2024

TOKYU REIT, Inc. is listed on the Tokyo Stock Exchange with the securities code number 8957. URL: https://www.tokyu-reit.co.jp/eng/

Contact: Tokyu Real Estate Investment Management Inc. (Investment Management Company) Yoshitaka Kimura, Representative Director & President, Chief Executive Officer

Tatsumi Yamagami, Representative Director & Executive Vice President, Chief Financial Officer Tel: [phone]

Planned date of filing Securities Report: April 26, 2024

Planned start of dividend payments: April 16, 2024

Supplementary documents for results: YES

Results briefing (for institutional investor and analysts): YES

This financial report has been prepared in accordance with Japanese accounting standards and Japanese law. Figures have been rounded down to eliminate amounts of less than one million yen.

PERFORMANCE FOR THE FISCAL PERIOD ENDED JANUARY 2024 (August 1, 2023 - January 31, 2024)

(1) Business Results			Percentage change shows the increase and decrease ratio to the previous period.
		Operating Revenues	Operating Income	Ordinary Income
		(Millions of Yen)	(%)	(Millions of Yen)	(%)	(Millions of Yen)	(%)
Period Ended	8,962	0.4	4,843	3.4	4,411	3.5
January 2024
Period Ended	8,924	-21.2	4,682	-36.1	4,261	-38.1
July 2023
					Return on	Ordinary	Ordinary
				Net Income	Income to
		Net Income	Unitholders'	Income to
		per Unit	Operating
				Equity (ROE)	Total Assets
					Revenues
		(Millions of Yen)	(%)	(Yen)	(%)	(%)	(%)
Period Ended	4,410	3.5	4,511	3.6	1.8	49.2
January 2024
Period Ended	4,260	-38.1	4,357	3.5	1.8	47.7
July 2023
(2) Distributions
				Distribution	Total		Distribution
		Distribution	Total	in Excess of	Distributions	Payout	Ratio to
		per Unit	Distributions	Earnings per	in Excess of	Ratio	Unitholders'
				Unit	Earnings		Equity
		(Yen)	(Millions of Yen)	(Yen)	(Millions of Yen)	(%)	(%)
Period Ended	3,750	3,666	-	-	83.1	3.0
January 2024
Period Ended	3,750	3,666	-	-	86.1	3.0
July 2023

Note: The payout ratio is calculated by the following formula. Payout Ratio=Total Distributions/Net Income×100

Distribution per unit for the fiscal period ended January 2024 is calculated by dividing by the total number of units issued and outstanding the amount obtained after adding ¥60 million of reversal of reserve for reduction entry of replaced property to net income and subtracting ¥804 million of provision of reserve for reduction entry of replaced property from unappropriated retained earnings.

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TOKYU REIT, Inc.

Distribution per unit for the fiscal period ended July 2023 is calculated by dividing by the total number of units issued and outstanding the amount obtained after adding ¥58 million of reversal of reserve for reduction entry of replaced property to net income and subtracting ¥652 million of provision of reserve for reduction entry of replaced property from unappropriated retained earnings.

(3) Financial Position

	Total Assets	Net Assets	Unitholders' Capital to	Net Assets
	Total Assets	per Unit
	(Millions of Yen)	(Millions of Yen)	(%)	(Yen)
Period Ended	241,413	123,562	51.2	126,393
January 2024
Period Ended	241,453	122,817	50.9	125,631
July 2023
(4) Cash Flows
	Cash Flows from	Cash Flows from	Cash Flows from	Cash and Cash
	Equivalents at the end
	Operating Activities	Investing Activities	Financing Activities
	of Period
	(Millions of Yen)	(Millions of Yen)	(Millions of Yen)	(Millions of Yen)
Period Ended	5,912	-682	-3,665	9,615
January 2024
Period Ended	7,582	-359	-3,948	8,050
July 2023

FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING JULY 2024 (February 1, 2024 - July 31, 2024)

AND THE FISCAL PERIOD ENDING JANUARY 2025 (August 1, 2024 - January 31, 2025)

Percentage change shows the increase and decrease ratio to the previous period.

										Distribution
	Operating	Operating	Ordinary	Net		Distribution	in Excess of
	Revenues	Income	Income	Income	per Unit	Earnings
										per Unit
	(Millions	(%)	(Millions	(%)	(Millions	(%)	(Millions	(%)	(Yen)	(Yen)
	of Yen)	of Yen)	of Yen)	of Yen)
Period Ending	9,632	7.5	5,128	5.9	4,694	6.4	4,693	6.4	3,750	-
July 2024
Period Ending	7,593	-21.2	3,266	-36.3	2,819	-39.9	2,818	-39.9	3,400	-
January 2025

Reference: Estimated net income per unit for the Fiscal Period Ending July 2024: ¥4,800 Estimated net income per unit for the Fiscal Period Ending January 2025: ¥2,883

Total number of investment units issued and outstanding for the Period Ending July 2024: 977,600 units

Total number of investment units issued and outstanding for the Period Ending January 2025: 977,600 units

Note:	Distribution per unit for the fiscal period ending July 2024 is assumed to be distributed through reversal of part
	of the reserve for reduction entry of replaced property (¥62 million) after subtracting provision of reserve for
	reduction entry of replaced property (¥1,089 million) from net income.
	Distribution per unit for the fiscal period ending January 2025 is assumed to be distributed through reversal of
	part of the reserve for reduction entry (¥440 million) and part of the reserve for reduction entry of replaced
	property (¥64 million) in addition to net income.

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TOKYU REIT, Inc.

OTHERS

1. Changes in Account Policies, changes in accounting estimates, and restatement of accounting errors Changes according to revision of account standard: No
   Changes according to another reason: No
   Changes in accounting estimates: No
   Restatement of accounting errors: No
2. Total number of investment units issued and outstanding
   The total number of investment units issued and outstanding is 977,600 units as of January 31, 2024 and 977,600 units as of July 31, 2023.
   No investment unit is held by TOKYU REIT itself as of January 31, 2024 and July 31, 2023.

Note 1: Status of auditing procedure

This summary of financial results is not subject to audit procedures by certified public accountant or audit firm.

Note 2: Forecasts for operating revenues, operating income, ordinary income, net income, distribution per unit and distribution in excess of earnings per unit may differ significantly from actual results due to changes in operating conditions and a variety of factors. Accordingly, TOKYU REIT does not guarantee any distribution amount. Forecasts presented in this document are based on "Assumptions for Forecasts for the Fiscal Period Ending July 2024 and the Fiscal Period Ending January 2025" identified in the separate reference attached.

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TOKYU REIT, Inc.

Assumptions for Forecasts for the Fiscal Period Ending July 2024

and the Fiscal Period Ending January 2025

Forecasts for operating revenues, operating income, ordinary income, net income, distribution per unit and distribution in excess of earnings per unit for the fiscal period ending July 2024 and the fiscal period ending January 2025 are based on the following preconditions and assumptions. If major discrepancies between the following assumptions and initial forecast are found, and if they may cause a certain level of change in forecast figures displayed above, a revised forecast shall be drafted and announced immediately.

	Preconditions and Assumptions
Property portfolio	・Regarding the 31 properties owned by TOKYU REIT as of January 31, 2024, it is assumed that 40%
	quasi-co-ownership interest in Tokyo Nissan Taito Building will be disposed on February 29, 2024.
Operating	・Revenues from real estate lease business are calculated in consideration of rent level, occupancy rate, etc.
revenues	fluctuation factors in light of recent real estate market conditions, state of negotiations with tenants,
	presence of competitive properties in the area, etc. In addition, there is assumed to be no payment delay
	or nonpayment by tenants.
	・Gain on sale of real estate, etc. of ¥1,729 million in the fiscal period ending July 2024 resulting from the
	disposition of Tokyo Nissan Taito Building is projected.
	・Occupancy Rates as of the end of the fiscal period ending July 2024 and the fiscal period ending January
	2025 are projected to be 99.3% and 97.0%, respectively.
Operating	・Outsourcing expenses for the fiscal period ending July 2024 and the fiscal period ending January 2025 are
expenses	projected to be ¥541 million and ¥552 million, respectively.
	・Repair, maintenance and renovation expenses for the fiscal period ending July 2024 and the fiscal period
	ending January 2025 are projected to be ¥395 million and ¥178 million, respectively. In an aim to improve
	the competitiveness of properties and the satisfaction of tenants under management, etc., constructions
	scheduled in the future will be implemented with priority. Actual repair, maintenance and renovation
	expenses for each fiscal period may, however, differ significantly from estimated amounts due to
	unforeseen circumstances or emergencies and the others.
	・Property and other taxes, such as fixed property tax and city planning tax, on real estate TOKYU REIT
	possesses, are calculated based on the amount expected to be imposed in each fiscal period (Period
	Ending July 2024: ¥764 million / Period Ending January 2025: ¥761 million).
	Fixed property tax and other taxes paid as part of the purchase prices to the seller upon the property
	acquisition were not recorded as expenses but included in the relevant property acquisition costs.
	・Depreciation and amortization expenses, including associated costs and additional capital expenditure in
	the future, are calculated based on the straight-line method (Period Ending July 2024: ¥950 million /
	Period Ending January 2025: ¥990 million).
	・Expenses from real estate lease business other than those listed above are calculated in consideration of
	fluctuation factors based on results in past fiscal periods.
	・Operating expenses other than expenses from real estate lease business (investment management fees and
	asset custodian fees, etc.) for the fiscal period ending July 2024 and the fiscal period ending January 2025
	are expected to be ¥882 million and ¥801 million, respectively.
Non-operating	・Interest expenses for the fiscal period ending July 2024 and the fiscal period ending January 2025 are
expenses	expected to be ¥405 million and ¥417 million, respectively. Interest expenses include interest expense
	and interest expense on investment corporation bonds.
Interest-Bearing	・The balance of interest-bearing debt as of January 31, 2024, is ¥104,500 million (long-term debt of
Debt	¥93,500 million and investment corporation bonds of ¥11,000 million). As for long-term debt of ¥5,000
	million due for repayment in the fiscal period ending July 2024 and long-term debt of ¥2,500 million due
	for repayment in the fiscal period ending January 2025, it is assumed that they will be entirely refinanced.
	・Balance of interest-bearing debt as of the end of the fiscal period ending July 2024 and the fiscal period
	ending January 2025 are projected to be ¥104,500 million (long-term debt of ¥93,500 million and
	investment corporation bonds of ¥11,000 million).
	・LTVs as of the end of the fiscal period ending July 2024 and the fiscal period ending January 2025 are
	projected to be 43.1% and 43.3%, respectively.
	(LTV: Interest-bearing debt (forecast) / total assets (forecast))
Total number of	・It is assumed that there will be no additional issuance of investment units to the 977,600 units issued and
investment units	outstanding as of March 15, 2024, through the end of the fiscal period ending January 2025.
issued and
outstanding

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TOKYU REIT, Inc.

Distribution per	・Distribution per unit is calculated based on the distribution policy stipulated in the Articles of
unit	Incorporation. Calculations are based on a 100% distribution of retained earnings.
	・Forecasts are based on the assumption that, as for the capital gain projected from the disposition of
	Tokyo Nissan Taito Building, ¥1,089 million of the ¥1,729 million in capital gains projected, which is to
	be posted in the fiscal period ending July 2024, is retained through application of the "Special Provisions
	for Taxation in Cases of Repurchase of Specified Assets" (Article 65-7 of the Act on Special Measures
	Concerning Taxation) for provision of reserve for reduction entry of replaced property as stipulated in
	the "Ordinance on Accountings of Investment Corporations."
	・Distribution for the fiscal period ending July 2024 is assumed to be distributed through reversal of part of
	the reserve for reduction entry of replaced property (¥62 million).
	・Distribution for the fiscal period ending January 2025 is assumed to be distributed through reversal of
	part of the reserve for reduction entry (¥440 million) and part of the reserve for reduction entry of
	replaced property (¥64 million).
	・It is possible that the distribution per unit could change due to various factors, including changes in assets
	under management, changes in rental revenue accompanying changes in tenants, etc., and unexpected
	maintenance and repairs.
Distribution in	・TOKYU REIT does not currently anticipate distribution in excess of earnings per unit.
excess of earnings
per unit
Other	・Forecasts are based on the assumption that any major revisions to regulatory requirements, accounting
	standards and taxation will not impact forecast figures.
	・Forecasts are based on the assumption that there will be no major unforeseen changes to economic trends
	and in real estate and other markets.

This notice may contain forward-looking statements, such as current plans, strategies, and future performance. These forward-looking statements are based on judgments obtained from currently available information. Please be advised that, for a variety of reasons, actual results may differ materially from those discussed in the forward-looking statements. Events that might affect actual results include, but are not limited to, fluctuations of the real estate market in Japan, general conditions of the Japanese economy, competitive pressures and relevant regulations.

This notice is a translation of the original document in Japanese and is prepared solely for the convenience of non-Japanese speakers. There is no assurance as to the accuracy of the English translation. The original Japanese notice shall prevail in the event of any discrepancies between the translation and the Japanese original.

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