ORIX JREIT Inc

For Immediate Release REIT Issuer: ORIX JREIT Inc. (TSE: 8954) Teruo Ozaki Executive Director Asset Management Company: ORIX Asset Management Corporation Yoshitaka Kamemoto President and CEO Inquiries: Yukio Wada Executive Officer TEL：+81 3 5418 4858 ORIX JREIT Announces Property Acquisition “SUNROUTE PLAZA TOKYO” TOKYO, January 17, 2016 — ORIX JREIT Inc. (“OJR”) announced that our asset management company, ORIX Asset Management Corporation (“OAM”), passed a resolution on the property acquisition as described below. 1. Summary of the Property Yield after Price to be Appraisal NOI Yield Area (Note3) (Note4) Depreciation Property Type (Note2) Seller acquired Value (Note5) (million yen) (million yen) (%) (%) Other Parts of the Greater Others SUNROUTE PLAZA TOKYO Tokyo Area Sponsor 26,800 26,900 5.6 4.7 （Hotel） (Urayasu-shi, Chiba) Existing Portfolio(Note6) - 5.1 4.0 Notes: 1. “Property” refers to the property to be acquired in the above. 2. “Other Parts of the Greater Tokyo Area” refers to parts of Tokyo other than the “6 Central Tokyo Wards” and “Remaining Tokyo Wards,” namely Kanagawa, Saitama and Chiba Prefectures. “6 Central Tokyo wards” refers to Chiyoda, Chuo, Minato, Shinjuku, Shibuya and Shinagawa wards and “Remaining Tokyo Wards” refers to the remaining Tokyo wards other than the “6 Central Tokyo Wards.” 3. As to the Seller, “Sponsor” indicates “ORIX Group”. “ORIX Group” refers to ORIX Corporation and its group companies. 4. The “NOI Yield” of Property is calculated by dividing Net Operating Income based on the direct capitalization method indicated in the appraisal reports at the time of decision to acquire by the price to be acquired. The figures are rounded to the one decimal place. 5. The “Yield after Depreciation” of Property is calculated by dividing (Net Operating Income based on the direct capitalization method indicated in the appraisal reports at the time of decision to acquire – Depreciation estimated by OAM) by the price to be acquired. The figures are rounded to the one decimal place. 6. “Existing Portfolio” refers to the combination of the properties owned as of August 31, 2016 and the four properties such as “Gaien Nishi-dori Building”, “Hotel Nikko Himeji”, “PRIZE TENJIN” and “intervillage OH! MAGARI (Extension)” acquired in and after the 30th fiscal period ending February 28, 2017 and deducted by “Toyo MK Building” disposed of in the same period. “NOI Yield” and “Yield after Depreciation” of existing portfolio are calculated based on the annualized actual figures for properties owned as of August 31, 2016 and the figures for the properties acquired on and after February 28, 2017 are calculated based on the figures in appraisal reports at the time of acquisition as well as “Depreciation” estimated by OAM in principal. 1/13 2. Purpose of the Acquisition The current Japanese economy hasn’t recovered from a temporary slowdown, with capital investment and personal consumption still being stagnant. As for the global economy, an unstable condition is continuing due to comprehensive concerns over impact by the U.S. interest rate hike, geopolitical tension, impact of Brexit issues. Although difference exists among asset types, rental conditions are expected to improve comprehensively. In such a real estate market, OJR will utilize its three strengths of 1) Diversified REIT, 2) ORIX Synergy (Note) and 3) Operating Expertise to implement an ongoing external growth strategy while grasping change of economy flexibly. Demands for hotels are expected to grow in the mid-long term with increasing inbound visitors and so forth. Compared with offices and retail facilities which are main properties of OJR, as tourism and sightseeing have a major factor on performance of hotels, OJR thinks that acquisition of hotels can contribute to further diversification of growth factors in its portfolio. Based on the above, OJR decided to acquire “SUNROUTE PLAZA TOKYO”. The property is located in Tokyo Disney Resort (TDR) that has outstanding capabilities to attract visitors in the world and stable demand is expected from visitors in and outside Japan. In addition, ORIX Group has been consistently operating hotels since 2002 and it is considered capable of utilizing the REIT’s strengths, ORIX Synergy and operating expertise, as it plans to continue to exercise operation know-how in the future. OJR will continuously pursue stable growth of unitholders’ value by making the best use of our external and internal growth strategies as well as our financial strategy. Note: The “ORIX Synergy” refers to the cooperative relationship between ORIX Group companies and OJR. 2/13 3. Acquisition Summary Property to be acquired ： Real estate trust beneficiary interest Price to be acquired ： ¥26,800,000,000(excluding national and local consumption taxes) Scheduled contract date ： January 17, 2017 Scheduled acquisition date ： January 20, 2017 Current owner and seller ： Yugen Kaisha SunHotel Investment Funding method ： Borrowings Payment term ： 100% on delivery 4. Summary of Property to be acquired Specified asset category Real estate trust beneficiary interest Trustee Mizuho Trust & Banking Co., Ltd. Term of trust agreement From March 28, 2002 to January 19, 2027 Date to be acquired January 20, 2017 Price to be acquired ¥26,800 million Appraisal value ¥26,900 milliion Date of Appraisal December 1, 2016 Appraiser Japan Real Estate Institute Address 1-6, Maihama, Urayasu-shi, Chiba Public transit access Approx. 20-minute walk from JR “MAIHAMA” Station on JR Keiyo Line and Approx. 5-minute ride by circuit buses. Land Registered Area 19,834.00 m2 Type of ownership Fee simple ownership Usage restrictions Semi-industrial area Registered usage Hotel Registered Existing wing: June 1986 completion date Extension wing : October 2003 Type of ownership Fee simple ownership The whole building: 38,488.60 m2 Registered Area Existing wing : 29,384.20 m2 Extension wing : 9,104.40 m2 Existing wing: Steel-reinforced concrete, reinforced concrete, Steel Registered framed with tiled flat roof, 9 floors with 1 construction underground floor Extension wing : Steel frame flat roof, 8 floors Building Existing wing : Kabushiki Kaisha SUNROUTE HOTEL SYSTEM Architect First-Class Architect Office Extension wing : NIHON SEKKEI, INC. Existing wing : Kabushiki Kaisha SUNROUTE HOTEL SYSTEM Structural engineer First-Class Architect Office Extension wing : NIHON SEKKEI, INC. Existing wing : TODA・OBAYASHI・Fujita・MITSUI General contractor CONSTRUCTION Consortium Extension wing : KAJIMA CORPORATION Building inspection Existing wing : Urayasu-Shi agency Extension wing : JAPAN ERI CO.,LTD. Elevator: 14 Main facilities and Escalator: 1 specifications Parking: 290 vehicles 3/13 Hotel guest rooms: 696 16 to 20m2 : 192 rooms, 24 to 28 m2 : 483 rooms, 33 to 96 m2: 21 rooms Earthquake 6% (without earthquake insurance) resistance (with or * Based on the report by Sompo Risk Management & Health Care without earthquake Inc. insurance) (Note1) Previous owner(beneficiary) Yugen Kaisha SunHotel Investment Scheduled property manager ORIX Real Estate Corporation Collateral None Pursuant to the land purchase and sale agreement concluded between Oriental Land Co., Ltd. (hereinafter “OLC”) and the initial trustor, the memorandum for the hotel construction concluded among Chiba prefecture, OLC and the initial trustor and other agreements, (i) when transferring ownership of the land of the property, the preferential negotiation right shall be granted to OLC, (ii) when Special notes transferring ownership of the land of the property, an approval from Public Enterprises Land Management Bureau Chief of Chiba prefecture is required and (iii) when transferring ownership of the property or the real estate trust beneficiary interest relating to the property, the preferential negotiation right shall be granted to Tokyo Bay Hotels Co., LTD, the largest shareholder of the hotel management company and the lessee and others. A rare official hotel of Tokyo Disney Resort (TDR), the outstanding large scale theme park in the world and site with the largest number of visitors in Japan. Urayasu-Shi boasts an accommodation market which is one of the largest in Japan with TDR’s incomparable capability to attract visitors. The property’s hotel room occupancy rate was 95% in the fiscal period ended March 31, 2016 and ADR(*) was approx. 19,700 yen. It maintained a hotel room occupancy rate of 78% and ADR of approx. 17,300 yen even in the fiscal period ended March 31, 2012 which was affected by the Great East Japan Earthquake. TDR Official Hotel has high appeal among visitors of TDR in having excellent traffic convenience with Disney Resort Line (monorail) and circuit buses as well as various benefits. Special features of the Property Total of 696 guestrooms including 192 guestrooms (16 to 20 m2), 483 guestrooms (24 to 28 m2) and 21 guestrooms (33 to 96 m2). Along with wedding facilities such as a chapel & banquet hall, it has Japanese and Western restaurants, a Disney shop, etc. Currently, there are no new supply plans of official hotels. ORIX Group has interests in PLAZA SUNROUTE Co., which is a lessee as well as the hotel management company since 2002. It is possible to manage facilities in cooperation with ORIX Group after the acquisition. As of January 17, 2017, ORIX Group still has approx. 30% stakes in it. （*）The Average Daily Rate (ADR) represents the amount calculated by dividing the total revenue from the hotel accommodation division during a certain period excluding service fees by the total number of rooms sold. Summary of the Engineering Report Reporting Company Just Ltd. Date of inspection November 7, 2016 The whole buildings: 3,477 million yen(Note2) Maintenance Cost *Total amount of 12 years from the date of inspection 4/13 Replacement Cost The whole buildings: 12,521 million yen (Note2) Summary of Rental status (as of December 31, 2016) No. of tenants 1 <Rent schedule> Annual guaranteed minimum rent: ¥1,750 million Annual sales-linked rent: Only the annual guaranteed minimum rent will be received if it falls below a certain annual revenues standard.

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