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

TOKYU REIT, Inc. Semiannual Report

Investment in

Highly Competitive Properties

in Areas with

Strong Growth Potential

The Fiscal Period

Ended January 2024

(41st Fiscal Period)

From August 1, 2023 to January 31, 2024

B A S I C P O L I C Y

1 Investment strategy to secure 'growth potential'

Invest in areas with strong growth potential

-Investment in properties in central Tokyo and Tokyu Areas

Committed to continued collaboration with Tokyu Corporation and its subsidiaries (Note) (Sponsor collaboration)

Growth through heightened added value of the Tokyu Areas

2 A portfolio that secures 'stability'

Diversified property uses and limited investment regions

Winning long-term contracts with well-balanced tenants

Investment criteria aimed at low risk and steady returns

3 Fund structure that backs 'transparency'

Thorough implementation of strict measures against conflicts of interest

Independent third-party checks

Proactive disclosure of transaction details

CONTENTS

...................................................	2	Asset Management Report	32
BASIC POLICY/CONTENTS
To Our Unitholders	3	Independent Auditor's Report	64
.............................................................	4	Balance Sheet	68
Financial Summary
Performance	5	Statement of Income	70
Topics	6	Statement of Changes in Unitholders' Equity	71
Sustainability Measures	7	Statement of Cash Distributions	72
Feature	14	Statement of Cash Flows	73
....................................	16	Notes to Financial Statements	74
Investment Management Strategy
Financial Strategies	20	Supplementary Schedules	90
Portfolio	21	Unitholder Information	96

(Note) Tokyu Corporation and its subsidiaries referred to in this semiannual report collectively represent "Tokyu Corporation," "a subsidiary of Tokyu Corporation" "a tokutei mokuteki kaisha (TMK) or a special purpose entity (SPE) that was established based on the intention of Tokyu Corporation or a subsidiary of Tokyu Corporation and where the share of investment by silent partnership or other investment shares in that entity by the respective company exceeds 50%." (The same applies hereinafter.)

2

To Our Unitholders

Executive Director

TOKYU REIT, Inc.

Representative Director & President,

Chief Executive Officer

Tokyu Real Estate Investment

Management Inc.

Yoshitaka Kimura

On behalf of , I would like to express my sincere appreciation to all of you, our unitholders, for your continued support and patronage.

I hereby report our operating environment and results for the fiscal period ended January 2024.

During the fiscal period ended January 2024, we disposed of our 30% quasi-co-ownership in Tokyo Nissan Taito Building, posting a gain on the sale of ¥1,295 million and provision of reserve for reduction entry of replaced property of ¥804 million. We also completed leasing for the extended section of Tokyu Toranomon Building, at which extension work was completed in June 2022, and the occupancy rate rose by 1.5 percentage points from the end of the previous fiscal period to 100%. Furthermore, due to factors such as the end of the free-rent period at Tokyu Toranomon Building and rent increases accompanying move-ins at other properties, leasing NOI was ¥5,372 million (increase of ¥146 million period on period). Additionally, gain on sale of real estate, etc. rose by ¥12 million compared with the previous fiscal period, and operating income stood at ¥4,843 million (increase of ¥160 million period on period), net income at ¥4,410 million (increase of ¥150 million period on period), and net income per unit at ¥4,511 (increase of ¥153 period on period). The distribution per unit will be ¥3,750 (same amount as the previous fiscal period), with provision and partial reversal of reserve for reduction entry of replaced property.

With regard to the next fiscal period onward, after estimating the gain on sale of real estate, etc. to be recorded due to the disposition of our 40% quasi-co-ownership in Tokyo Nissan Taito Building in February 2024, net income per unit is forecast to be ¥4,800 (increase of ¥289 period on period) in the fiscal period ending July 2024. After estimating the temporary decrease in leasing NOI accompanying tenant move-outs, net income per unit is forecast to be ¥2,883 (decrease of ¥1,917 period on period) in the fiscal period ending January 2025.

Distribution per unit is planned to be ¥3,750 (same amount as the previous fiscal period) after provision and partial reversal of reserve for reduction entry of replaced property for the fiscal period ending July 2024 and ¥3,400 (decrease of ¥350 period on period) after partial reversal of reserve for reduction entry and reserve for reduction entry of replaced property for the fiscal period ending January 2025.

Positioning ESG and the SDGs as important management

issues, and Tokyu REIM have promoted identification of material issues (materiality) and ESG initiatives in various fields based on the Sustainability Policy. We also prepared a new sustainability report, which was disclosed on

the website, in the current fiscal period.

will continue to strive to maximize unitholder value through "investment in highly competitive properties in areas with strong growth potential."

greatly appreciates your continued support.

March 2024

April 1988

Entered Tokyu Corporation, Railway Operation Division, Railway Business Unit

November 1988

Tokyu Corporation, Resort Headquarters

September 1996

April 2011	April 2019
Tokyu Corporation, General Manager of Planning &	Tokyu Corporation, Deputy Executive General Manager of
Administration Division, Group Companies Business Unit	Corporate Planning Headquarters
June 2011	April 2020
Tokyu REIM, Auditor (Part-time)	Tokyu Corporation, Executive General Manager of Corporate
July 2011	Planning Headquarters

Transferred to K.K. Urabandai Kougen Tokyu Resort

April 1997

Transferred to TOKYU RESEARCH INSTITUTE, INC.

February 2002

Tokyu Corporation, Management Planning Division, Corporate Headquarters

April 2005

Tokyu Corporation, Manager of Management Planning Division, Corporate Headquarters

April 2009

Tokyu Corporation, Manager of Planning & Administration Division, Group Companies Business Unit

Tokyu Corporation, General Manager of Division I, Group Companies Business Unit

April 2012

Tokyu Corporation, General Manager of Group Business Division, Group Companies Business Unit

April 2014

Tokyu Corporation, General Manager of Business Strategy Division, Corporate Planning Unit

October 2014

Tokyu REIM, Director (Part-time)

April 2015

Transferred to Tokyu Green System Co., Ltd., Director & President

April 2020

Tokyu REIM, Director (Part-time)

July 2022

Transferred to Tokyu REIM, Representative Director & Executive Vice President

May 2023

Appointed Executive Director of (current position)

May 2023

Tokyu REIM, Representative Director & President, Chief Executive Officer (current position)

3

Financial Summary

	Cash Distribution per Unit	¥3,750
	Fiscal Period Ended January 2024
	(FP 41)		(Fixed)
		(Date of payment: April 16, 2024)
	(FP 42)	¥3,750
	Fiscal Period Ending July 2024			(Forecast)
	Cash Distribution per Unit	(Date of payment: Mid October 2024)
	(FP 43)	¥3,400
	Fiscal Period Ending January 2025			(Forecast)
	Cash Distribution per Unit	(Date of payment: Mid April 2025)

Financial Summary

			Ended July 2023	Ended January 2024
			(FP 40)	(FP 41)
			Actual	Actual
Balance Sheets		Number of Properties	31 properties	31 properties
		Total Assets	¥241,453 million	¥241,413 million
		Interest-Bearing Debt	¥104,500 million	¥104,500 million
		Total Assets Loan-to-Value (LTV) Ratio	43.3%	43.3%
Statements of		Operating Revenues	¥8,924 million	¥8,962 million
Income
		Net Income	¥4,260 million	¥4,410 million
Distributions		Distribution per Unit	¥3,750	¥3,750
		Average Market Price per Unit	¥187,116	¥179,195

4

Performance

TOKYU REIT, Inc. () listed its units on the Tokyo Stock Exchange on September 10, 2003. With the ultimate goal of

maximizing unitholder value, is engaged in asset investment and management based on principles of growth, stability,

and transparency. is committed to securing stable earnings and cash distributions through investment in highly

competitive properties in areas with strong growth potential. invests primarily in office properties, retail properties, residences and complexes that include any one of these properties located in Tokyo Central 5 Wards and the Tokyu Areas, which refers to

the areas serviced by the Tokyu rail network. As of January 31, 2024 (FP 41), held 19 office buildings, 8 retail facilities, 2 residences, 1 complex and 1 land with leasehold interest for a total of 31 properties.

Occupancy Rate

(%)				99.5%	100%	100%
100
		99.4%	99.5%		100%
				99.8%
		98.8%			100%
99		99.4%	99.3%	99.8%
98.5%
98	98.4%	98.6%	98.6%
98.6%
	98.4%
97
96
95

End of	End of	End of	End of	End of	End of
Aug. 2023	Sep. 2023	Oct. 2023	Nov. 2023	Dec. 2023	Jan. 2024

Retail Office Total

Unit Price

(¥)
250,000
200,000
150,000			Closing Price at the end of FP 41
				¥172,000
				(Jan. 31, 2024)
100,000
50,000	End of	End of	End of	End of	End of	End of
Aug. 1,
2023	Aug. 2023	Sep. 2023	Oct. 2023	Nov. 2023	Dec. 2023	Jan. 2024

Unit Price

Cash Distribution per Unit

(¥)
20,000
				15,889
5,000			4,432
																3,950 4,005	4,040
														3,298 3,551	3,760	3,621	3,750 3,750
				3,072 3,312 3,256 3,101
												3,099
	2,846	2,609 2,759 2,835	2,836 2,885	2,519		2,647	2,621			2,564	2,517 2,586	2,451 2,631 2,695 2,746	2,650 2,650 2,739	2,923
2,500	2,409	2,341 2,229	2,403
2,424
0

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended Ended Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Jan.

Jan.

Jan.

Jan.

Jan.

Jan.

Jan.

Jan.

Jan.

Jan.

Jan.

Jul.

Jan.

Jan.

Jan.

Jan.

Jan.

Jan.

Jan.

Jan.

Jan.

Jan.

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

(FP 1) (Note 1)

(FP 3)

(FP 5)

(FP 7)

(FP 9)

(FP 11)

(FP 13)

(FP 15)

(FP 17)

(FP 19)

(FP 21) (FP 22) (FP 23)

(FP 25)

(FP 27)

(FP 29)

(FP 31)

(FP 33)

(FP 35)

(FP 37)

(FP 39)

(FP 41)

(Note 2)

Cash Distribution per Unit

(Notes) 1. Official distribution per unit in the fiscal period ended January 2004 (FP 1) was ¥1,897 (adjusted for five-for-one split) based on the actual operating period of 144 days, but the recalculated distribution per unit of ¥2,424 based on 184 operating days is used in the above graph for the sake of comparison with figures from the fiscal period ended July 2004 (FP 2) and thereafter.

2. Cash distribution per unit have been adjusted to take into account the split of investment units (five-for-one split) conducted on February 1, 2014 for pre-split figures.

Unrealized Gains/Losses and Unrealized Gains/Losses over Book Value

(¥ billion)																																																																															(%)
100																																Unrealized Gains/Losses (Left Axis)			Unrealized Gains/Losses over Book Value (Right Axis)	89.4				88.5		50
90																																																																																	87.8		45
80																	36.2%																																																										41.1%				38.5%		40
70																																																																														35
60																																																																																			37.9%		30
50																					67.1																																																																	25
40																																																																																					20
30																																																																																							15
20																																																																																							10
10	-0.9%																																																																																			5
0																																																																																			0
	-0.9
-10																																																																																			-5
End of Jan.	End of Jan.	End of Jan.	End of Jan.	End of Jan.	End of Jan.	End of Jan.	End of Jan.		End of Jan.	End of Jan.	End of Jan.	End of Jan.	End of Jan.	End of Jan.	End of Jan.	End of Jan.	End of Jan.	End of Jan.	End of Jan.	End of Jan.
		End of Jan.
	2004		2005		2006		2007	2008		2009		2010		2011	2012		2013		2014		2015			2016		2017		2018		2019		2020		2021		2022		2023	2024
		(FP 1)	(FP 3)	(FP 5)	(FP 7)		(FP 9)	(FP 11)	(FP 13)	(FP 15)		(FP 17)	(FP 19)	(FP 21)	(FP 23)		(FP 25)	(FP 27)	(FP 29)	(FP 31)	(FP 33)	(FP 35)	(FP 37)		(FP 39)		(FP 41)

5

(Note 4)

Topics

Property Disposition (FP ended Jul. 2023 (FP 40) - FP ending Jul. 2024 (FP 42))

Aimed to level incremental distributions and secured funds for future external growth by disposing over three fiscal periods

Disposition

Tokyo Nissan Taito

Building (Office)

Overview of property

Disposition date	Jul. 31, 2023	Jan. 31, 2024	Feb. 29, 2024
(30% quasi-co-ownership interest)	(30% quasi-co-ownership interest)	(40% quasi-co-ownership interest)
Buyer		Domestic godo kaisha (GK)
Disposition price	2,385 million yen	2,385 million yen	3,180 million yen
Difference between the disposition	1,288 million yen	1,301 million yen	1,738 million yen
price and the book value (Note 1)
NOI		279 million yen per annum
(NOI yield) (Note 2)		(3.5%)
NOI after depreciation		175 million yen per annum
(NOI yield after depreciation) (Note 2)		(2.2%)
Occupancy rate (Note 3)		100.0%
Completion date		September 1992
Location		Taito-ku, Tokyo

Effect of Disposition

				FP ended	FP ended	FP ending
				Jul. 2023	Jan. 2024	Jul. 2024	Total
				(FP 40)	(FP 41)	(FP 42)
		(Unit: million yen)		Actual	Actual	Forecast
	Gain on sale of real estate,
	1,282	1,295	1,729	4,307
	etc.
		Of which, provision of
		reserve for reduction	652	804	1,089	2,546
		entry of replaced property

Use of Proceeds from Sale

Out of sales proceeds, 6,167 million yen will be held as cash on hand for property acquisitions targeted to be made by the fiscal period ending July 2024.

(Note 1) Difference between the disposition price and estimated book value as of the disposition date (as of July 14, 2023) is indicated.

(Note 2) The actual results from February 2022 to January 2023. Yields are based on disposition price.

(Note 3) As of the end of the fiscal period ended January 2024 (FP 41).

(Note 4) Sum of the book value as of the disposition date, the actual amount of provision of reserve for reduction entry of replaced property and the estimated amount is indicated.

Trend and Guidance for Distribution per Unit

Distribution per unit

Reversal of reserve for reduction entry per unit

Gain on sale, etc. per unit (Note)

Reversal of reserve for reduction entry of replaced property per unit

Distribution per unit (excluding gain on sale, etc. per unit (Note), reversal of reserve for reduction entry per unit and reversal of reserve for reduction entry of replaced property per unit)

(yen)

									3,551
		3,099		2,923			3,298		326
			40	315
2,739	323		3,225
		2,883	2,983
2,739	2,776

Advanced property

acquisitions in the property replacement scheme

3,760 3,621

365

3,395 3,621

Period of extension work of Tokyu Toranomon Building (Period of revenue decrease)

3,950		4,005
		3,400 yen
1,526	1,636
2,424	2,369

4,040

3,200 yen

1,687

2,353

			Distribution floor
3,750	3,750	3,750		3,400 yen
	3,400
	501	654
644
61	63		65	450
59
3,047	3,188	3,033		2,883

End of

End of

End of

End of

End of

End of

End of

End of

End of

End of

End of

End of

End of

End of

Jul. 2018

Jan. 2019

Jul. 2019

Jan. 2020

Jul. 2020

Jan. 2021

Jul. 2021

Jan. 2022

Jul. 2022

Jan. 2023

Jul. 2023

Jan. 2024

Jul. 2024

Jan. 2025

(FP 30)

(FP 31)

(FP 32)

(FP 33)

(FP 34)

(FP 35)

(FP 36)

(FP 37)

(FP 38)

(FP 39)

(FP 40)

(FP 41)

(FP 42)

(FP 43)

Forecast

Forecast

(Note) Gain on sale of real estate, etc. per unit - Provision of reserve for reduction entry per unit - Provision of reserve for reduction entry of replaced property per unit

(Reference) Change in/Forecast of Balance of Reserve for Reduction Entry per Unit	Reversed due to the depreciation for the
and Balance of Reserve for Reduction Entry of Replaced Property per Unit		building of Futako Tamagawa Rise		(Unit: yen)
		End of	End of	End of	End of	End of	End of	End of	End of	End of	End of	End of	End of
		Jul. 2024	Jan. 2025
		Jul. 2019	Jan. 2020	Jul. 2020	Jan. 2021	Jul. 2021	Jan. 2022	Jul. 2022	Jan. 2023	Jul. 2023	Jan. 2024
		(FP 32)	(FP 33)	(FP 34)	(FP 35)	(FP 36)	(FP 37)	(FP 38)	(FP 39)	(FP 40)	(FP 41)	(FP 42)	(FP 43)
		Forecast	Forecast
	Provision	-	364	393	416	-	-	433	-	-	-	-	-
Reserve for reduction	Reversal	-	-	-	-	-	-	-	-	-	-	-	450
entry per unit
	Balance	368	733	1,126	1,542	1,542	1,542	1,976	1,976	1,976	1,976	1,976	1,525
Reserve for reduction	Provision						3,283	-	3,003	667	823	1,114	-
entry of replaced	Reversal	-	-	-	-	-	-	-	-	59	61	63	65
property per unit
Balance						3,283	3,283	6,286	6,894	7,655	8,706	8,640

6

Sustainability Measures

External Certification, Green Finance, etc.

External Certification and Evaluation

GRESB

GRESB Real Estate Assessment

4 Star Green Star (9th consecutive year)

GRESB Public Disclosure

1. Level (highest rating)

MSCI ESG Ratings

BBB

*The use by TOKYU REIT of any MSCI ESG RESEARCH LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of TOKYU REIT by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided "as-is" and without warranty. MSCI names and logos are trademarks or service marks of MSCI.

Environmental Certification

Acquisition ratio of environmental certification (Note), Number of properties certified

49.6%

54.1%

53.3%

53.2%

15 properties

31.5%

14 properties

14 properties

14 properties

7 properties

End of Jan. 2022

End of Jul. 2022

End of Jan. 2023

End of Jul. 2023

End of Jan. 2024

(FP 37)

(FP 38)

(FP 39)

(FP 40)

(FP 41)

• As of the end of February 2024, the acquisition ratio of environmental certification was 55.4% (15 properties).

Target (Tokyu REIM)

Increase the acquisition ratio of environmental certification (Note) of the owned properties to 70% or more by fiscal 2025

CASBEE Real Estate	BELS Certification	LEED Certification
Assessment Certification

Rank S: 3 properties	: 1 property	Gold: 1 property
Rank A: 10 properties

(Note) Based on total floor space (excluding land with leasehold interest). Even when a certification is acquired only for a certain use at properties including multiple uses, the area for which environmental certification is acquired is calculated based on the total floor area of the said property. The figures are calculated by using the exclusive area based on ownership ratio when part of the ownership interest is held at buildings under compartmentalized ownership and the total floor area or exclusive area based on ownership ratio when part of the ownership interest is held at co-owned properties.

Green Finance Framework

Green Eligibility Criteria

1. Green buildings

2. Renovation work, etc.

DBJ Green Building Certification (5, 4 or 3 Stars)

CASBEE Certification (Rank S, A or B+)

BELS Certification (5, 4 or 3 Stars)

LEED Certification (Platinum, Gold or Silver)

Renovation work intending to improve the number of stars or rank by one or more for any of the environmental certifications listed in 1

Renovation work capable of reducing energy consumption, greenhouse gas emission or water consumption by 30% or more

Introduction or acquisition of facilities related to renewable energy

External Evaluation

Obtained the top rank (Green 1 [F]) in the Green Finance Framework evaluation by Japan Credit Rating Agency, Ltd. (JCR)

Procurement (balance as of the end of the fiscal period ended Jan. 2024)

Total: 19.0 billion yen (green bond: 6.0 billion yen, green loan: 13.0 billion yen)

Task Force on Climate-related Financial Disclosures (TCFD) (Tokyu REIM)

Endorsed TCFD recommendations and joined the TCFD Consortium (August 2022)

Analyzed the impact of climate change on businesses based on multiple scenarios (less than 1.5°C less than 2°C, 4°C). Identified and assessed the risks and opportunities for business activities, and implemented disclosure in line with the TCFD recommendations (March 2023)

7

Sustainability Measures

Environmental Measures

Reduction of Energy Consumption and Greenhouse Gas ("GHG") Emissions / Reduction of Water Consumption and Waste

Setting of Environmental Performance Targets

Greenhouse gas emission intensity (Note 1)	46.2% reduction from the level for fiscal 2019 in fiscal 2030
Achieve carbon neutrality by fiscal 2050
Energy consumption intensity and water consumption intensity (Note 1)	5% reduction from the level for fiscal 2019 by fiscal 2024
Waste recycling rate (Note 2)		Maintain the level of fiscal 2019 or higher by fiscal 2024
Environmental Performance Data
		FY2022	vs. FY2019
Energy consumption (GJ)	264,635	-114,229
(-30.2%)
	Scope 1	78	70
Greenhouse gas	Scope 2	161	-5,306
emissions	Scope 3	1,358	-12,206
(t-CO2)
		-0.082
Consumption rate (t-CO2/m2)	0.009
(-90.4%)
Water consumption (m3)	142,675	-47,151
(-24.8%)
Waste discharge (Note 2)	(t)	928	-1,837
(-66.4%)

* Please refer to TOKYU REIT's website for other items (https://www.tokyu-reit.co.jp/eng)

(Note 1) The figures for greenhouse gas, energy and water are counted for each fiscal year from February to January of the following year.

(Note 2) The figures for waste are counted for each fiscal year from April to March of the following year.

Introduction of 100% Renewable Energy

Ratio of properties introduced 100% renewable energy (Note 3)

78.2% (27 properties)

(Note 3) Based on total floor area of properties under management excluding land with leasehold interest. The figures are calculated by using the exclusive area based on ownership ratio when part of the ownership interest is held at buildings under compartmentalized ownership and the total floor area or exclusive area based on ownership ratio when part of the ownership interest is held at co-owned properties.

Major Construction Work Related to Reduction of Energy Consumption

(fiscal period ended Jul. 2023 (FP 40) & fiscal period ended Jan. 2024 (FP 41))

Renewal of air conditioning equipment: Reduction of electricity

7 properties	consumption

(TOKYU REIT Omotesando Square, CONZE Ebisu, Tokyo Nissan Taito Building, TOKYU REIT Toranomon Building, Akihabara Sanwa Toyo Building, Shibuya Dogenzaka Sky Building, Futako Tamagawa Rise)

Renovation of restrooms: 3 properties Water-saving

(TOKYU REIT Shinjuku 2 Building, TOKYU REIT Ebisu Building, Futako Tamagawa Rise)

owned office areas (Note 4)>

		86.5%	89.3%
	80.3%
67.4%
		Reduction of electricity
			consumption
End of Jul. 2022	End of Jan. 2023	End of Jul. 2023	End of Jan. 2024
(FP 38)	(FP 39)	(FP 40)	(FP 41)

(Note 4) Based on total leasable area.

8

Introduction of Green Leases

Green lease introduction rate: 78.3% (Note 5)

(Note 5) The figure is the percentage of green leases among newly signed leases (including amendment memorandums) during the fiscal period ended January 2024 (FP 41) based on the number of leases (excluding Futako Tamagawa Rise and residential sections).

Preserving Biodiversity

Developed "open areas with water and greenery," including rooftop greening of a large-scale facility as part of our aim to pursue urban development in harmony with the surrounding area's abundant natural environment (Futako Tamagawa Rise)

Acquisition of JHEP certification (Futako Tamagawa Rise)

Social Contribution

Initiatives for Social Consideration

Initiatives for Local Communities

Regional disaster prevention base (Futako Tamagawa Rise)

Secured stockpiles and conducted training to accommodate people who have difficulty returning home in preparation for emergencies

Held an event to enjoy learning about disaster preparedness

(Futako Tamagawa Rise)

Held an event for local residents to learn about preparing for disasters

Established the roof garden as a venue for learning

(Futako Tamagawa Rise)

At the roof garden, various events such as wildlife observation sessions and vegetable gardening workshops are held

Installed disaster-relief vending machines (6 properties: 8 machines)

©Futakotamagawa Rise

©Futakotamagawa Rise

Improvement of Safety and Comfort of Tenants

Implementation of disaster prevention drills Regularly implement disaster prevention drills at owned properties

Implementation of training for tenant employees

(Futako Tamagawa Rise)

Conducted training to improve tenant employees' customer service capabilities

Tenant satisfaction survey (Futako Tamagawa Rise)

Conducted satisfaction surveys targeting all tenant employees for the purpose of improving tenant satisfaction

Disclosure of Information to Stakeholders

Issued "Sustainability Report 2022"

Initiatives for the Officers and Employees of the Investment Management Company

Allocation and Development of Personnel Sufficient in Both Quality and Quantity

Training program

Implemented various training for all officers and employees

Compliance training: 8 times (actual results for fiscal 2022)

Diversity training (2023) Training by job grade (2023)

Support for the acquisition of qualifications

Supported self-development of officers and employees with enhanced subsidy programs for acquiring and maintaining qualifications

Major qualifications

6	Real Estate Appraisers	1	Certified Public Accountant
29 Real Estate Notaries	1	First-Class Architect
9	ARES Certified Masters	2	Second-Class Architects
5	Certified Building Administrators	1	AML/CFT Officer, etc.
7	Certified Rental Property Managers

No. of people who utilized the subsidy programs for acquiring and maintaining qualifications: 12 (actual results for fiscal 2022)

Diversity training (2023)

Creation of a Healthy Organizational Culture and Work Environment

Development of comfortable work environment

Ratio of female officers and employees, and ratio of female managers: 48% and 39%

Percentage of employees taking annual paid holiday: 75.8% /

Average overtime hours: 20 hours per month (actual results for fiscal 2022)

Enrichment of childcare and nursing care leave system, short-time work system, etc.

Establishment of health committee: Appointment of industrial physician, interview with officers and employees

Implementation of stress check for officers and employees: Consultation rate: 93.3% (actual results for fiscal 2022)

Established in-house rules on remote work/shortened working hours and staggered

working hours

Promoted the use of NewWork (Note) (satellite office)Office (after renovation) Implemented renovation work of the office space at the Investment Management

Company with an aim to promote communication and improve comfort, etc.

(Note) Jointly used satellite shared office for corporations operated by Tokyu Corporation.

9

Sustainability Measures

Governance

TOKYU REIT, Inc. Board of Directors

's Board of Directors comprises Executive Directors that execute the operations of the investment corporation and Supervisory Directors that oversee the Executive Directors' execution of operations. The Articles of Incorporation stipulate that the Board of Directors must contain one or two Executive Directors and two or three Supervisory Directors, with at least one more Supervisory Director than the number of Executive Directors. It also limits the term of office of these directors at two years. As of the

end of January 2024 (FP 41), there were one Executive Director and two Supervisory Directors (Note) at .

(Note) In addition, appointments of Tatsumi Yamagami as a substitute executive director and Minako Matsumoto as a substitute supervisory director were approved at the General Meeting of Unitholders of TOKYU REIT held on April 21, 2023.

		Maruhito Kondo	Yoshitaka Kimura		Takashi Aikawa
		Supervisory Director	Executive Director		Supervisory Director
Maruhito Kondo Supervisory Director	Takashi Aikawa Supervisory Director
April 1988		Admitted to the Bar of Japan (Tokyo Bar Association).	November 1997		Admitted to Joto Audit Corporation
		Entered Ohara Law Office.	March 2001		Admitted to Shinsoh Audit Corporation
May 1988		Studied abroad at the Chinese University of Hong Kong.
	April 2003		Certified as a public accountant in Japan (current)
September 1988		Studied abroad at Renmin University of China.
	April 2015		Appointed Chief Representative, Shinsoh Audit Corporation
July 1989
	Worked at Robert Lee & Fong Solicitors in Hong Kong.			(current position)
February 1996		Opened Maruhito Kondo Law Office (current position).	January 2021		Outside auditor of SHOEI FOODS CORPORATION (current position)
May 1998		Admitted to Daini Tokyo Bar Association	May 2021		Appointed Supervisory Director, TOKYU REIT, Inc. (current position)
June 2003		(current position).
	Appointed Supervisory Director, TOKYU REIT, Inc. (current position).

*See page 3 about Yoshitaka Kimura's career.

TOKYU REIT's Initiatives (Governance)

's Aim, Goals

1. Unitholder first
   Willing to learn from investors but reject requests from short-term interests
2. Aim to become a "Global investment product"
   Willing to become invest-worthy for all investors around the globe
3. Quality decision-making process
   Highest level board management in the REIT industry
4. Aim to become the most reputable J-REIT Outperform other J-REITs

's Management Characteristics

Characteristics of 's Governance Structure

1. Proactive involvement of independent outside board members
2. Optimal balance between sponsor collaboration and independence
3. Strict focus on fiduciary duty for investment management company and the others
4. Management fee set to "being in the same boat as unitholders"

Excellent

Governance

as a Source of

Competitiveness

Structural

Human

Resources

Culture

Track

Record

	Multiple layers of monitoring and proactive involvement of		Stringent measures against conflicts of interest
	outside board members		Board meetings held twice or more a month on a regular basis
	Management fee set to "being in the same boat as unitholders"		and enhanced resolution and reporting system
	Carefully select board members to enhance debate (Note)		Legal advisor to be present at board meetings
	Provide appropriate compensation to board members for the
	responsibility and the workload
	Board members not hesitant to reject, waive resolution or agree		Tokyu REIM's efforts
	with conditions		• Strict focus on fiduciary duty
	Willing to debate among independent outside board members		• Management fee programmed to enhance involvement of all business segments
			• Intend to let all Tokyu REIM staff communicate directly with investors
	Status of the Board of Directors' meetings held (ended Jan. 2024		Attendance at Board of Directors' meeting (ended Jan. 2024 (FP 41))
	(FP 41)):		Yoshitaka Kimura (Executive Director) 100%
	1.6 meetings per month on average		Maruhito Kondo (Supervisory Director) 100%
			Takashi Aikawa (Supervisory Director) 100%
			General Administrator 100%

(Note) Professional and a company manager with experience as an outside board member.

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