1 October 10, 2019 for Translation Purpose Only Real Estate

October 10, 2019 For Translation Purpose Only

Real Estate Investment Trust Securities Issuer Tosei Reit Investment Corporation 4-2-3 Toranomon, Minato-ku, Tokyo Representative: Takayoshi Kitajima, Executive Director (Securities Code: 3451) Asset Management Company Tosei Asset Advisors, Inc. Representative: Akihiko Fujinaga, President & Representative Director Inquiries: Keiji Miyaishi General Manager, Treasury & Planning Department, REIT Division (TEL: +81-3-3433-6320)

Notice Concerning Acquisition of Real Estate Trust Beneficiary Rights and Leases (Total of 12 Properties)

Tosei Reit Investment Corporation (“Tosei Reit”) announces that its asset management company Tosei Asset Advisors, Inc. (the “Asset Management Company”) today decided on acquisition of the real estate trust beneficiary rights of the following 12 properties (the “to-be-acquired assets”) and corresponding commencement of leasing, as described below. Furthermore, the decision on acquisition of the to-be-acquired assets, with the exception of corresponding commencement of leasing was subject to approval of Tosei Reit’s board of directors, pursuant to the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951; including amendments thereto) (the “Investment Trusts Act”) and the Asset Management Company’s related- party transaction rules.

１． Overview of the Acquisition Anticipated Anticipated Appraisal acquisition Property Property acquisition NOI yield Type Location price (JPY Brokerage number name date (%) million) (Note 1) (Note 3) (Note 2) Yokohama- Kannai Wise December О-13 shi, 2,050 5.23 Building 2, 2019 Kanagawa Office Hon-Atsugi Atsugi-shi, November О-14 Tosei 880 6.30 Kanagawa 5, 2019 Building Subtotal (2 properties) - - 2,930 - None T's garden Kashiwa-shi, December Rd-23 2,770 5.45 Kitakashiwa Chiba 2, 2019 Century Saitama-shi, Residential Rd-24 980 5.86 Urawa Saitama properties November T's garden Tama-shi, Rd-25 5, 2019 850 6.13 Nagayama Tokyo Rd-26 Grandeur Fujimi-shi, 822 5.81

(1) Contract date : October 10, 2019 (2) Scheduled acquisition date : Please refer to “Anticipated acquisition date” in the table above. (3) Sellers : Please refer to “4. Seller profile” later in this document. (4) Acquisition financing : Proceeds from the issuance of new investment units for which resolution was passed at the meeting of the board of directors of Tosei Reit held on October 10, 2019 (Note 4), loans (Note 5), and funds on hand (5) Settlement method : Payment of entire amount at time of delivery (Note 1) “Anticipated acquisition date” is the anticipated acquisition date stated in the real estate trust beneficiary right sale and purchase contract for the to-be-acquired asset. The anticipated acquisition date is subject to change in accordance with the real estate trust beneficiary right sale and purchase contract. The same applies hereinafter. (Note 2) “Anticipated acquisition price” is the sale and purchase price stated in the real estate trust beneficiary right sale and purchase contract for the to-be-acquired asset. The sale and purchase price exclude consumption tax, local consumption tax and various expenses required for the acquisition. The same applies hereinafter. (Note 3) “Appraisal NOI yield” is the figure arrived at when net operating income (NOI) is divided by the anticipated acquisition price for the to-be-acquired asset, rounded to two decimal places. In addition, “NOI” refers to the total amount of net operating income based on the direct capitalization method stated in the real estate appraisal report as of August 31, 2019, the effective date of the appraisal (date of value). (Note 4) For details, please refer to the “Notice Concerning Issuance of New Investment Units and Secondary Offering of Investment Units” dated today. (Note 5)For details, please refer to the “Notice Concerning Debt Financing” dated today.

2. Reason for asset acquisition and leasing The decision was made to acquire the to-be-acquired assets (12 properties), in an aim to secure stable revenue over the medium to long term and achieve steady growth of assets under management as provided in “Basic Policy for Asset Management” in the Articles of Incorporation. Tosei Reit has evaluated the following characteristics in deciding the acquisition.

Property Property name Characteristics of property number О-13 Kannai Wise Building ・ The property is located an approximate 2-minute walk from Kannai Station on the JR Keihin Tohoku Line/Negishi Line. As it is on the south side of the

Through the acquisition of the to-be-acquired assets, the Tosei Reit portfolio will expand to 49 properties totaling JPY 687 billion in terms of (anticipated) acquisition price. Furthermore, the asset acquisition, constitutes a transaction with a related party under the Investment Trusts Act or a related-party transaction as provided in the Asset Management Company’s related-party transaction rules. In such cases, the anticipated acquisition price has been premised on being at or below the appraisal value (as defined in “3. Description of the To-Be- Acquired Assets and Leasing Schedule” below) and has undergone verification by the Asset Management Company, such as calculation of assumed NOI (as defined in “3. Description of the To-Be-Acquired Assets and Leasing Schedule” below) to be generated from the to-be-acquired assets. As a result of conducting said evaluation of the profitability of each of the to-be-acquired

3. Description of the to-be-acquired assets and leasing schedule The following tables are an overview of each to-be-acquired asset of which the acquisition is decided by Tosei Reit compiled into individual tables (the “individual property tables”). A glossary of the terms used in the individual property tables is provided below. Unless otherwise noted, in principle, the entries are the status as of August 31, 2019. (Note) Unless otherwise noted, the numerical value figures, percentage figures and years stated in the following text are stated with numerical value figures rounded down to the nearest specified unit (if decimals, then to the nearest specified decimal place) and percentage figures and years rounded to one decimal place. Accordingly, the respective item figures or percentages may not add up to the total.

(1) About “Trustee,” “Trust establishment date” and “Trust expiration date” ・“Trustee” is the trustee of the to-be-acquired asset, or the planned trustee of the to-be-acquired asset at the time of the property acquisition. In addition, “Trust establishment date” is the date of establishment of any trust established, or the planned date of establishment of any trust to be established as of today. ・ “Trust expiration date” is scheduled to be changed with change of the real estate management and disposition trust agreement at the time of the property acquisition by Tosei Reit. Therefore, the trust expiration date after the change is indicated for properties whose trust has been established as of today. For properties whose trust has not been established as of today, the scheduled trust expiration date in the real estate management and disposition trust agreement scheduled to be concluded as of today is indicated.

(2) About “Location (indication of residential address)” “Location (indication of residential address)” is the indication of residential address of the real estate. In addition, in cases where there is no “indication of residential address,” then it is the building location in the real estate registry (if several, then one of the locations).

(3) About “Land” ・“Floor area ratio” is, in principle, the figures provided in accordance with related laws and regulations, such as the Building Standards Act (Act No.201 of 1950; including amendments thereto) (hereinafter the “Building Standards Act” and the City Planning Act (Act No.100 of 1968; including amendments thereto) (hereinafter the “City Planning Act”) Depending on the to-be- acquired asset, there are cases where “Floor area ratio” stated in this material is 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 converted to one that applies to the entire site. ・“Building coverage ratio” is, in principle, the figures provided in accordance with related laws and regulations, such as the Building Standards Act and the City Planning Act. Depending on the to- be-acquired asset, there are cases where “Building coverage ratio” stated in this material is subject to certain relaxation measures or restriction measures. In addition, where there are several

(4) About “Building” ・“Construction completion” is the date of new construction in the real estate registry. ・“Structure” and “Floors” are based on those stated in the real estate registry. ・“Use” is the major type of building in the real estate registry. ・“Total floor area” is based on that stated in the real estate registry. Furthermore, it does not include the floor area of annex building. ・“Type of ownership” is the type of right to be held by the trustee of the to-be-acquired asset.

(5) About “Appraisal value” “Appraisal value” is the appraisal value stated in the real estate appraisal report as of August 31, 2019, the effective date of the appraisal (date of value). In addition, “real estate appraisal report” refers collectively to the real estate appraisal report prepared at Tosei Reit’s request for appraisal of the to-be-acquired asset by Japan Real Estate Institute, JLL Morii Valuation & Advisory K.K. and Japan Valuers Co., Ltd. pursuant to the Matters to be Considered in Real Estate Appraisal Pertaining to the Investment Trusts Act, as well as the Act on Real Estate Appraisal and the Real Estate Appraisal Standards. There is no special vested interest between Japan Real Estate Institute, JLL Morii Valuation & Advisory K.K. or Japan Valuers Co., Ltd., which performed the real estate appraisal, and Tosei Reit or the Asset Management Company.

(6)About “Long-term repair expenses” and “Urgent, short-term repair expenses” The following amounts are indicated for “Long-term repair expenses” ① Expenses stated as average amount of repair and renewal expenses per year as projected in the engineering report for the 11 years from the second to twelfth year hereafter, in regard to properties investigated by HI International Consultant Co., Ltd. The expenses stated as the average amount per year of repair and renewal expenses projected for the next 12 years in the engineering report in the case of properties surveyed by Sompo Risk Management Inc.・“Emergency and short-term repair expenses” is the sum total of the expenses stated in the engineering report as expenses in urgent need and repair and renewal expenses required within roughly one year.

(7) About “PML value” Tosei Reit has an evaluation of seismic risk analysis conducted by Sompo Risk Management Inc. at its request as part of due diligence upon acquisition of to-be-acquired asset. The analysis evaluates a building’s seismic performance by an independent structural evaluation method based on structural drawings and structural calculation documents, which is then weighed against the content of structural calculation documents to arrive at the building’s final seismic performance evaluation. The building’s specific seismic vulnerability based on such evaluation is considered and seismic hazards and ground conditions are factored into for a comprehensive evaluation, based on the results of which a building’s seismic probable maximum loss (PML) value is calculated. “PML value” is the to-be-acquired asset’s building PML value stated in the “seismic PML (re)evaluation report” prepared by said company. The statements in the seismic PML (re)evaluation report are no more than an indication of the opinion of the reporting party, and Tosei Reit does not guarantee the

(8) About “Master lease company” “Master lease company” is the company that has or is scheduled to conclude a master lease agreement that is valid as of today for the to-be-acquired asset. “Master lease agreement” refers to the contract form where investment real estate is leased with a separate lessee (master lessee) mediating between the lessor and tenants. “Fixed-rent master lease agreement” refers to a master lease agreement of which the contract form is the receipt of a fixed amount of rent regardless of fluctuations in rent from tenants. “Pass-through type master lease agreement” refers to a master lease agreement of which the contract form is the receipt of rent from tenants as is in principle. “Sub-master lease agreement” refers to the contract form where investment real estate is leased with a separate lessee (sub-master lease company) mediating between the master lease company and tenants. “Fixed-rent sub-master lease agreement” refers to a sub-master lease agreement of which the contract form is the receipt of a fixed amount of rent regardless of fluctuations in rent from tenants.

(9) About “Property management company” “Property management company” is the company that has concluded a property management agreement that is valid as of today for the to-be-acquired asset.

(10) About “Status of leasing” ・“Scheduled contract date,” “Scheduled leasing commencement date” and “Contract period” are based on the master lease agreement scheduled to be concluded upon acquisition of the to-be- acquired assets. “Scheduled contract date” and “Scheduled leasing commencement date” are subject to change with the change of scheduled acquisition date. ・“Total number of tenants” is the number of tenants for each to-be-acquired asset based on each lease agreement for each to-be-acquired asset (in cases where a tenant has concluded more than one lease agreement, the tenant is counted as one). However, in cases where a master lease agreement has been concluded for the concerned to-be-acquired asset, the number of tenants in the case of a property under a pass-through type master lease agreement is the total number of end-tenants, and the number of tenants in the case of a property under a fixed-rent master lease agreement is the master lease company alone as tenant and the number of tenants from counting the number of tenants based on lease agreements between the master lease company and end- tenants is shown in parentheses. ・“Annual rent” is the amount annualized by multiplying by 12 the monthly rent for the building indicated in each lease agreement for each to-be-acquired asset (limited to those occupied as of August 31, 2019). For the to-be-acquired asset, it is the amount annualized by multiplying by 12 the monthly rent (limited to the rent of rental units, including common area maintenance charges, but excluding warehouse, signboard, parking lot, etc. usage fees; the same applies hereinafter) based on lease agreements concluded with end-tenants in cases where a pass-through type master lease agreement has been concluded, and it is the amount annualized by multiplying by 12 the monthly rent based on the master lease agreement in cases where a fixed-rent master lease agreement has been concluded. The “Annual rent” entry is omitted in cases where consent for disclosure has not been obtained from the end-tenant. ・“Security and guarantee deposits” is the sum total amount of tenant security and guarantee deposits required based on each lease agreement for each to-be-acquired asset (limited to those occupied as of August 31, 2019). For the to-be-acquired asset, it is the sum total amount of tenant security and guarantee deposits based on lease agreements concluded with end-tenants in cases

Disclaimer: This document is an English translation of a press release for public announcement concerning acquisition of real estate trust beneficiary rights and leases by Tosei Reit Investment Corporation, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Tosei Reit’s prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility. 9 where a master lease agreement has been concluded. In addition, free-rent (free of rent) as of the same date is not taken into consideration. The “Security and guarantee deposits” entry is omitted in cases where consent for disclosure has not been obtained from the end-tenant. In addition, even if there is a notice of cancellation or termination of lease agreements with end-tenants or unpaid rent, the notice and non-payment are not taken into consideration for “Total number of tenants,” “Annual rent,” “Security and guarantee deposits,” “Total leased area”, “Occupancy rate” etc. in the case of agreements that are ongoing as of August 31, 2019. ・“Total leasable area” is the floor area regarded as being available for leasing based on the lease agreement or building drawing, etc. of the building for each to-be-acquired asset. ・“Total leased area” is the sum total of the leased floor area indicated in each lease agreement for each to-be-acquired asset. The leased area indicated in the lease agreement may differ from the actual figures. However, for the to-be-acquired asset, it is the sum total of the leased floor area indicated in lease agreements concluded with end-tenants in cases where a pass-through type master lease agreement has been concluded, and it is the leased floor area indicated in the master lease agreement in cases where a fixed-rent master lease agreement has been concluded. ・“Ratio of total leasable area to total leasable area of entire portfolio” is the ratio of the total leasable area for each to-be-acquired asset to total leasable area for the assets held by Tosei Reit after acquisition of the to-be-acquired assets. ・“Occupancy rate” is the ratio of the total leased area to total leasable area for each to-be-acquired asset. However, in cases where a master lease agreement has been concluded for the concerned to-be-acquired asset, the occupancy rate in the case of a property under a pass-through type master lease agreement is the ratio of the sum total of the floor area actually leased under lease agreements concluded with end-tenants, and the occupancy rate in the case of a property or space under a fixed-rent master lease agreement is the ratio of the leased floor area based on the master lease agreement and the occupancy rate that is the ratio of the sum total of the floor area actually leased under lease agreements concluded between the master lease company and end-tenants for the property is shown in parentheses. ・“Other matters to be specially noted” is, in principle, concerning matters considered important in leasing of individual assets based on information as of today.

(11) About “Matters of special note” “Matters of special note” is, in principle, concerning matters considered important in rights, use, etc. of individual assets, as well as matters considered important in consideration of the degree of impact on valuation, profitability and disposability of the concerned asset, based on information as of today.

(12) About “Assumed NOI” The assumed annual net operating income in a steady state calculated by the Asset Management Company based on leasing agreement terms and conditions, etc. and taking into account the status of the property on the scheduled acquisition date.

(13) About “Summary of real estate appraisal report” “Summary of real estate appraisal report” is a summary of the real estate appraisal reports. Each real estate appraisal is no more than the appraiser’s judgment and opinion at a certain point in time, and is not a guarantee of the validity or accuracy of the content, possibility of transaction at the concerned appraisal value, etc.

investigation Investigation date August 2019 Investigator Sompo Risk Management Inc. Long-term repair JPY 12,208 thousand expenses Urgent, short-term Not applicable. repair expenses Replacement value JPY 1,765,000 thousand PML value 6.83% PML investigator Sompo Risk Management Inc. Master lease company Tosei Community Co., Ltd. Property management Tosei Community Co., Ltd. company Status of leasing Pass-through type master lease agreement Scheduled contract December 2, 2019 date Scheduled leasing December 2, 2019 commencement date From December 2, 2019 to end of December 2020 (one-year contract Contract period renewal thereafter)

Total number of 5 tenants Annual rent JPY 138 million Security and JPY 100 million guarantee deposits Total leasable area 3,568.43 m2 Total leased area 3,568.43 m2

Other expenses 1,489,641 miscellaneous expenses, etc. (3) Net operating income 107,160,985 － (NOI=(1)−(2)) (4) Financial interests on Appraised by multiplying a stable deposit in the medium to long term by a 1,005,708 deposits certain rate. (5) Capital expenditures 7,346,667 Appraised based on the presented ER (6) Net cash flow 100,820,026 － (NCF=(3)+(4)−(5)) Appraised by taking into consideration such factors as region and factors (7) Capitalization rate 4.6％ specific to the subject real estate and referring to such factors as the market capitalization rate of similar types. Indicated value by DCF method 2,130,000,000 － Appraised by taking into consideration such factors as region and factors Discount rate 4.4％ specific to the subject real estate and referring to such factors as the market capitalization rate of similar types Appraised by adding such factors as future uncertainties to the Terminal capitalization rate 4.8％ abovementioned capitalization rate Indicated value by cost approach 2,020,000,000 － Ratio of land 89.6％－ Ratio of building 10.4％－ The appraisal value was determined in light of such factors as the attributes of market participants for the subject real estate, by deeming that the Matters considered in reconciliation of indicated values indicated value by income approach that truly reproduces the pricing process and determination of appraisal value from earnings aspects is more credible, and with the indicated value by cost approach as reference.

Property name O-14 Hon-Atsugi Tosei Building Type of specified asset Trust beneficiary right Anticipated acquisition price JPY 880 million Scheduled acquisition date November 5, 2019 Trustee Mitsubishi UFJ Trust and Banking Corporation Trust establishment date August 30, 2019 Trust expiration date August 31, 2029 Previous owner (Previous Tosei Corporation beneficiary) Location (indication of 8-10 Tamura-cho, Atsugi-shi, Kanagawa residential address) Floor area ratio / Building 400%／100% (Note) coverage ratio Land Use district Commercial district Site area 945.00 m2 Type of Proprietary ownership ownership Construction January 1993 completion Structure and Steel-framed structure・Steel-framed reinforced concrete structure floors 7 floors above ground Building Use Offices Total floor area 3,818.84 m2 Type of Proprietary ownership ownership Appraisal value JPY897 million Appraisal firm Japan Valuers Co., Ltd. Building condition

investigation Investigation date June 2019 Investigator HI International Consultant Co., Ltd. Long-term repair JPY 10,635 thousand expenses Urgent, short-term JPY 2,940 thousand repair expenses Replacement value JPY 1,145,600 thousand PML value 8.92% PML investigator Sompo Risk Management Inc. Master lease company Tosei Community Co., Ltd. Property management Tosei Community Co., Ltd. company Status of leasing Pass-through type master lease agreement Scheduled contract November 5, 2019 date Scheduled leasing November 5, 2019 commencement date From November 5, 2019 to end of November 2020 (one-year contract Contract period renewal thereafter)

Total number of 12 tenants Annual rent JPY 79 million Security and JPY 60 million guarantee deposits

Property taxes 8,586,764 Appraised based on the actual amount of fiscal 2019 Insurance premium 220,620 Appraised by comparing the scheduled amount and same type of cases Other expenses 385,056 miscellaneous expenses, etc. (3) Net operating income 55,405,510 － (NOI=(1)−(2)) (4) Financial interests on Appraised by multiplying a stable deposit in the medium to long term by a 614,657 deposits certain rate. (5) Capital expenditures 6,995,917 Appraised based on the presented ER (6) Net cash flow 49,024,250 － (NCF=(3)+(4)−(5)) Appraised by taking into consideration such factors as region and factors (7) Capitalization rate 5.5％ specific to the subject real estate and referring to such factors as the market capitalization rate of similar types. Indicated value by DCF method 902,000,000 － Appraised by taking into consideration such factors as region and factors Discount rate 5.3％ specific to the subject real estate and referring to such factors as the market capitalization rate of similar types Appraised by adding such factors as future uncertainties to the Terminal capitalization rate 5.7％ abovementioned capitalization rate Indicated value by cost approach 678,000,000 － Ratio of land 76.1％－

Ratio of building 23.9％－ The appraisal value was determined in light of such factors as the attributes of market participants for the subject real estate, by deeming that the Matters considered in reconciliation of indicated values indicated value by income approach that truly reproduces the pricing process and determination of appraisal value from earnings aspects is more credible, and with the indicated value by cost approach as reference.

Property name Rd-23 T's garden Kitakashiwa Type of specified asset Trust beneficiary right Anticipated acquisition price JPY 2,770 million Scheduled acquisition date December 2, 2019 Trustee Mitsubishi UFJ Trust and Banking Corporation Trust establishment date August 30, 2019 Trust expiration date August 31, 2029 Previous owner (Previous Tosei Corporation beneficiary) Location (indication of 470-58 Takanodai Aza Nedo Kashiwa-shi, Chiba residential address) Floor area ratio / Building 200%／60% coverage ratio Land Use district Quasi-industrial district Site area 7,150.52 m2 Type of Proprietary ownership ownership Construction (1) (2) January 1992 completion (3) (4) September 2008 (1) Steel-framed reinforced concrete structure 9 floors above ground Structure and (2) Steel-framed reinforced concrete structure 13 floors above ground floors (3) Steel-framed reinforced concrete structure 4 floors above ground Building (4) Reinforced concrete construction 1 floors above ground (1) (2) (3) Residential Use (4) Storeroom Total floor area 13,796.50 m2 Type of Proprietary ownership ownership Appraisal value JPY2,820 million Appraisal firm Japan Valuers Co., Ltd. Building condition

investigation Investigation date May 2019 Investigator HI International Consultant Co., Ltd. Long-term repair JPY 26,155 thousand expenses Urgent, short-term JPY 4,020 thousand. repair expenses Replacement value JPY 3,707,300 thousand PML value 4.32% PML investigator Sompo Risk Management Inc. Master lease company Tosei Community Co., Ltd. Property management Tosei Community Co., Ltd. company Status of leasing Pass-through type master lease agreement Scheduled contract December 2, 2019 date Scheduled leasing December 2, 2019 commencement date

From December 2, 2019 to end of December 2020 (one-year contract Contract period renewal thereafter) Total number of 139

(2) Operating expenses 74,774,444 － Maintenance and Appraised by comparing and considering the scheduled amount and same 13,848,000 management fee type of cases Appraised by comparing and considering the actual result and same type of Utilities expenses 21,366,470 cases Appraised based on the presented ER (includes restoration costs for the Repair expenses 10,199,322 exclusive space) Appraised by comparing and considering same-type cases based on the Property management fee 6,448,536 scheduled management fee plan (includes CM fees) Tenant leasing cost, etc. 4,436,754 Appraised based on historical data Property taxes 17,188,600 Appraised based on the actual amount of fiscal 2019 Insurance premium 704,040 Appraised by comparing the scheduled amount and same type of cases

Other expenses 582,722 miscellaneous expenses, etc. (3) Net operating income 151,075,468 － (NOI=(1)−(2)) (4) Financial interests on Appraised by multiplying a stable deposit in the medium to long term by a 107,046 deposits certain rate. (5) Capital expenditures 17,017,000 Appraised based on the presented ER (6) Net cash flow 134,165,514 － (NCF=(3)+(4)−(5)) Appraised by taking into consideration such factors as region and factors (7) Capitalization rate 4.7％ specific to the subject real estate and referring to such factors as the market capitalization rate of similar types. Indicated value by DCF method 2,790,000,000 － Appraised by taking into consideration such factors as region and factors Discount rate 4.5％ specific to the subject real estate and referring to such factors as the market capitalization rate of similar types Appraised by adding such factors as future uncertainties to the Terminal capitalization rate 4.9％ abovementioned capitalization rate Indicated value by cost approach 1,880,000,000 － Ratio of land 65.1％－ Ratio of building 34.9％－ The appraisal value was determined in light of such factors as the attributes of market participants for the subject real estate, by deeming that the Matters considered in reconciliation of indicated values indicated value by income approach that truly reproduces the pricing process and determination of appraisal value from earnings aspects is more credible, and with the indicated value by cost approach as reference.

investigation Investigation date June 2019 Investigator HI International Consultant Co., Ltd. Long-term repair JPY 9,599 thousand expenses Urgent, short-term JPY 2,750 thousand repair expenses Replacement value JPY 1,004,200 thousand PML value 4.54% PML investigator Sompo Risk Management Inc. Master lease company Tosei Community Co., Ltd. Property management Tosei Community Co., Ltd. company Status of leasing Pass-through type master lease agreement Scheduled contract November 5, 2019 date Scheduled leasing November 5, 2019 commencement date From November 5, 2019 to end of November 2020 (one-year contract Contract period renewal thereafter)

Total number of 67 tenants Annual rent JPY 69 million Security and JPY 6 million guarantee deposits Total leasable area 4,201.77 m2 Total leased area 3,802.72 m2

(2) Operating expenses 21,551,000 － Maintenance and Appraised based on the scheduled maintenance and management fee and 5,160,000 management fee the level of maintenance and management fee of similar real estate. Appraised based on the level of utilities expenses of similar real estate and Utilities expenses 1,067,000 actual income. Appraised by taking into consideration such factors as the annual average Repair expenses 6,139,000 amount of medium- to long-term repair and renewal expenses in the engineering report. Appraised based on the scheduled fee rate for property management Property management fee 2,276,000 services, and by verifying with the property management fee rate of similar real estate. Appraised by taking into consideration the regional practices and the factors Tenant leasing cost, etc. 2,703,000 specific to the subject real estate Property taxes 3,867,000 Appraised based on such factors as the fiscal 2019 taxation statement. Appraised based on such factors as the estimate amount of insurance Insurance premium 197,000 premium and the insurance premium rate of similar real estate. Other expenses 142,000 Recorded use fee of overhead contact line for joint use, etc. as other expenses. (3) Net operating income 57,411,000 － (NOI=(1)−(2)) (4) Financial interests on 58,000 Appraised financial interests at investment return of 1.0%. deposits Appraised by taking into consideration such factors as the annual average (5) Capital expenditures 6,320,000 amount of medium- to long-term repair and renewal expenses in the engineering report. (6) Net cash flow 51,149,000 － (NCF=(3)+(4)−(5)) Appraised by adding/subtracting the spread attributable to the location conditions, building conditions and other conditions of the subject real (7) Capitalization rate 4.8％ estate, and taking into account such factors as future uncertainties and the market capitalization rate for similar real estate. Indicated value by DCF method 1,020,000,000 － Appraised by reference to such factors as the investment capitalization rate Discount rate 4.6％ of similar real estate, and comprehensively taking into account such factors as the factors specific to the subject real estate. Appraised by reference to such factors as the market capitalization rate of similar real estate, and comprehensively taking into account such factors as Terminal capitalization rate 5.0％ future trends in the investment capitalization rate, risks of the subject real estate as an investment target, general projection of the future economic growth rate and trends in real estate prices and rent. Indicated value by cost approach 978,000,000 － Ratio of land 81.8％－ Ratio of building 18.2％－ Deeming that the indicated value by income approach derived from the Matters considered in reconciliation of indicated values and pricing process from earnings aspects is a credible value that more truly determination of appraisal value reflects the actual market state, the indicated value by income approach was employed with the indicated value by cost approach as reference.

investigation Investigation date June 2019 Investigator HI International Consultant Co., Ltd. Long-term repair JPY 15,145 thousand expenses Urgent, short-term JPY 1,650 thousand repair expenses Replacement value JPY 1,238,200 thousand PML value 7.72% PML investigator Sompo Risk Management Inc. Master lease company Tosei Community Co., Ltd. Property management Tosei Community Co., Ltd. company Pass-through type master lease agreement / fixed-rent sub-master Status of leasing lease agreement (residential portion) Scheduled contract November 5, 2019 date Scheduled leasing November 5, 2019 commencement date From November 5, 2019 to end of November 2020 (one-year contract Contract period renewal thereafter) Total number of 5(104) tenants Annual rent JPY 68 million Security and JPY 5 million guarantee deposits Total leasable area 4,286.89 m2

Disclaimer: This document is an English translation of a press release for public announcement concerning acquisition of real estate trust beneficiary rights and leases by Tosei Reit Investment Corporation, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Tosei Reit’s prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility. 24 Summary of real estate appraisal report Property name T's garden Nagayama Appraisal JPY888 million value Appraisal firm Japan Real Estate Institute Date of value August 31, 2019 Item Details Description, etc. Estimated by correlation of the indicated value by direct capitalization Indicated value by income approach 888,000,000 method with the indicated value by DCF method as both values are deemed to be of comparable standards. Indicated value by direct Appraised as the net cash flow regarded as being stable in the medium to 897,000,000 capitalization method long term, discounted by the capitalization rate. (1) Operating revenue ((a)−(b)) 73,226,000 － Appraised based on the unit level of rent, etc. receivable in a stable manner (a) Gross potential income 74,391,000 over the medium to long term. Appraised based on stable occupancy rate level over the medium to long (b) Vacancy loss, etc. 1,165,000 term. (2) Operating expenses 21,119,000 － Maintenance and Appraised based on the scheduled maintenance and management fee and 7,000,000 management fee the level of maintenance and management fee of similar real estate. Appraised based on the level of utilities expenses of similar real estate and Utilities expenses 2,000,000 actual income. Appraised by taking into consideration such factors as the annual average Repair expenses 4,210,000 amount of medium- to long-term repair and renewal expenses in the engineering report. Appraised based on the scheduled fee rate for property management Property management fee 1,200,000 services, and by verifying with the property management fee rate of similar real estate. Appraised by taking into consideration the regional practices and the factors Tenant leasing cost, etc. 494,000 specific to the subject real estate. Property taxes 5,985,000 Appraised based on such factors as the fiscal 2019 taxation statement. Appraised based on such factors as the estimate amount of insurance Insurance premium 230,000 premium and the insurance premium rate of similar real estate Other expenses 0 There are no expenses otherwise to record as other expenses. (3) Net operating income 52,107,000 － (NOI=(1)−(2)) (4) Financial interests on 61,000 Appraised financial interests at investment return of 1.0%. deposits Appraised by taking into consideration such factors as the annual average (5) Capital expenditures 10,030,000 amount of medium- to long-term repair and renewal expenses in the engineering report. (6) Net cash flow 42,138,000 － (NCF=(3)+(4)−(5)) Appraised by adding/subtracting the spread attributable to the location conditions, building conditions and other conditions of the subject real (7) Capitalization rate 4.7％ estate, and taking into account such factors as future uncertainties and the market capitalization rate for similar real estate. Indicated value by DCF method 878,000,000 － Appraised by reference to such factors as the investment capitalization rate Discount rate 4.5％ of similar real estate, and comprehensively taking into account such factors as the factors specific to the subject real estate. Appraised by reference to such factors as the market capitalization rate of similar real estate, and comprehensively taking into account such factors as Terminal capitalization rate 4.9％ future trends in the investment capitalization rate, risks of the subject real estate as an investment target, general projection of the future economic growth rate and trends in real estate prices and rent. Indicated value by cost approach 876,000,000 － Ratio of land 75.2％－ Ratio of building 24.8％－ Deeming that the indicated value by income approach derived from the Matters considered in reconciliation of indicated values and pricing process from earnings aspects is a credible value that more truly determination of appraisal value reflects the actual market state, the indicated value by income approach was employed with the indicated value by cost approach as reference.

investigation Investigation date May 2019 Investigator HI International Consultant Co., Ltd. Long-term repair JPY 8,058 thousand expenses Urgent, short-term JPY 1,280 thousand repair expenses Replacement value JPY 580,600 thousand PML value 4.14% PML investigator Sompo Risk Management Inc. Master lease company Tosei Community Co., Ltd. Property management Tosei Community Co., Ltd. company Status of leasing Pass-through type master lease agreement Scheduled contract November 5, 2019 date Scheduled leasing November 5, 2019 commencement date From November 5, 2019 to end of November 2020 (one-year contract Contract period renewal thereafter)

Total number of 85 tenants Annual rent JPY 57 million Security and JPY 5 million guarantee deposits Total leasable area 2,144.34 m2 Total leased area 1,927.74 m2

(2) Operating expenses 16,328,000 － Maintenance and Appraised based on the scheduled maintenance and management fee and 4,056,000 management fee the level of maintenance and management fee of similar real estate. Appraised based on the level of utilities expenses of similar real estate and Utilities expenses 778,000 actual income. Appraised by taking into consideration such factors as the annual average Repair expenses 3,999,000 amount of medium- to long-term repair and renewal expenses in the engineering report. Appraised based on the scheduled fee rate for property management Property management fee 1,865,000 services, and by verifying with the property management fee rate of similar real estate. Appraised by taking into consideration the regional practices and the factors Tenant leasing cost, etc. 2,554,000 specific to the subject real estate Property taxes 2,958,000 Appraised based on such factors as the fiscal 2019 taxation statement. Appraised based on such factors as the estimate amount of insurance Insurance premium 118,000 premium and the insurance premium rate of similar real estate. Other expenses 0 － (3) Net operating income 47,778,000 － (NOI=(1)−(2)) (4) Financial interests on 48,000 Appraised financial interests at investment return of 1.0%. deposits Appraised by taking into consideration such factors as the annual average (5) Capital expenditures 5,245,000 amount of medium- to long-term repair and renewal expenses in the engineering report. (6) Net cash flow 42,581,000 － (NCF=(3)+(4)−(5)) Appraised by adding/subtracting the spread attributable to the location conditions, building conditions and other conditions of the subject real (7) Capitalization rate 5.0％ estate, and taking into account such factors as future uncertainties and the market capitalization rate for similar real estate. Indicated value by DCF method 824,000,000 － Appraised by reference to such factors as the investment capitalization rate Discount rate 4.8％ of similar real estate, and comprehensively taking into account such factors as the factors specific to the subject real estate. Appraised by reference to such factors as the market capitalization rate of similar real estate, and comprehensively taking into account such factors as Terminal capitalization rate 5.2％ future trends in the investment capitalization rate, risks of the subject real estate as an investment target, general projection of the future economic growth rate and trends in real estate prices and rent. Indicated value by cost approach 653,000,000 － Ratio of land 80.5％－ Ratio of building 19.5％－ Deeming that the indicated value by income approach derived from the Matters considered in reconciliation of indicated values and pricing process from earnings aspects is a credible value that more truly determination of appraisal value reflects the actual market state, the indicated value by income approach was employed with the indicated value by cost approach as reference.

investigation Investigation date August 2019 Investigator Sompo Risk Management Inc. Long-term repair JPY 6,488 thousand expenses Urgent, short-term Not applicable. repair expenses Replacement value JPY 857,000 thousand PML value 10.05% PML investigator Sompo Risk Management Inc. Master lease company Tosei Community Co., Ltd. Property management Tosei Community Co., Ltd. company Status of leasing Pass-through type master lease agreement Scheduled contract November 5, 2019 date Scheduled leasing November 5, 2019 commencement date From November 5, 2019 to end of November 2020 (one-year contract Contract period renewal thereafter)

Total number of 58 tenants Annual rent JPY 59 million Security and JPY 1 million guarantee deposits Total leasable area 2,845.88 m2 Total leased area 2,750.94 m2

Disclaimer: This document is an English translation of a press release for public announcement concerning acquisition of real estate trust beneficiary rights and leases by Tosei Reit Investment Corporation, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Tosei Reit’s prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility. 30 Summary of real estate appraisal report Property name T's garden Hitotsubashi-gakuen Appraisal JPY794 million value Appraisal firm Japan Real Estate Institute Date of value August 31, 2019 Item Details Description, etc. Estimated by correlation of the indicated value by direct capitalization Indicated value by income approach 794,000,000 method with the indicated value by DCF method as both values are deemed to be of comparable standards. Indicated value by direct Appraised as the net cash flow regarded as being stable in the medium to 802,000,000 capitalization method long term, discounted by the capitalization rate. (1) Operating revenue ((a)−(b)) 58,581,000 － Appraised based on the unit level of rent, etc. receivable in a stable manner (a) Gross potential income 61,688,000 over the medium to long term. Appraised based on stable occupancy rate level over the medium to long (b) Vacancy loss, etc. 3,107,000 term. (2) Operating expenses 14,571,000 － Maintenance and Appraised based on the scheduled maintenance and management fee and 3,100,000 management fee the level of maintenance and management fee of similar real estate. Appraised based on the level of utilities expenses of similar real estate and Utilities expenses 1,200,000 actual income. Appraised by taking into consideration such factors as the annual average Repair expenses 2,983,000 amount of medium- to long-term repair and renewal expenses in the engineering report. Appraised based on the scheduled fee rate for property management Property management fee 1,757,000 services, and by verifying with the property management fee rate of similar real estate. Appraised by taking into consideration the regional practices and the factors Tenant leasing cost, etc. 1,704,000 specific to the subject real estate. Property taxes 3,672,000 Appraised based on such factors as the fiscal 2019 taxation statement. Appraised based on such factors as the estimate amount of insurance Insurance premium 155,000 premium and the insurance premium rate of similar real estate Other expenses 0 There are no expenses otherwise to record as other expenses. (3) Net operating income 44,010,000 － (NOI=(1)−(2)) (4) Financial interests on 12,000 Appraised financial interests at investment return of 1.0%. deposits Appraised by taking into consideration such factors as the annual average (5) Capital expenditures 4,700,000 amount of medium- to long-term repair and renewal expenses in the engineering report. (6) Net cash flow 39,322,000 － (NCF=(3)+(4)−(5)) Appraised by adding/subtracting the spread attributable to the location conditions, building conditions and other conditions of the subject real (7) Capitalization rate 4.9％ estate, and taking into account such factors as future uncertainties and the market capitalization rate for similar real estate. Indicated value by DCF method 785,000,000 － Appraised by reference to such factors as the investment capitalization rate Discount rate 4.7％ of similar real estate, and comprehensively taking into account such factors as the factors specific to the subject real estate. Appraised by reference to such factors as the market capitalization rate of similar real estate, and comprehensively taking into account such factors as Terminal capitalization rate 5.1％ future trends in the investment capitalization rate, risks of the subject real estate as an investment target, general projection of the future economic growth rate and trends in real estate prices and rent. Indicated value by cost approach 747,000,000 － Ratio of land 80.3％－ Ratio of building 19.7％－ Deeming that the indicated value by income approach derived from the Matters considered in reconciliation of indicated values and pricing process from earnings aspects is a credible value that more truly determination of appraisal value reflects the actual market state, the indicated value by income approach was employed with the indicated value by cost approach as reference.

investigation Investigation date August 2019 Investigator Sompo Risk Management Inc. Long-term repair JPY 6,086 thousand expenses Urgent, short-term Not applicable. repair expenses Replacement value JPY 817,000 thousand PML value 4.43% PML investigator Sompo Risk Management Inc. Master lease company Tosei Community Co., Ltd. Property management Tosei Community Co., Ltd. company Status of leasing Pass-through type master lease agreement Scheduled contract November 5, 2019 date Scheduled leasing November 5, 2019 commencement date From November 5, 2019 to end of November 2020 (one-year contract Contract period renewal thereafter)

Total number of 56 tenants Annual rent JPY 58 million Security and JPY 3 million guarantee deposits Total leasable area 3,054.42 m2 Total leased area 3,000.42 m2

Insurance premium 158,470 Appraised by comparing the scheduled amount and same type of cases Other expenses 277,233 miscellaneous expenses, etc. (3) Net operating income 45,398,440 － (NOI=(1)−(2)) (4) Financial interests on Appraised by multiplying a stable deposit in the medium to long term by a 36,407 deposits certain rate. (5) Capital expenditures 4,613,333 Appraised based on the presented ER (6) Net cash flow 40,821,514 － (NCF=(3)+(4)−(5)) Appraised by taking into consideration such factors as region and factors (7) Capitalization rate 5.0％ specific to the subject real estate and referring to such factors as the market capitalization rate of similar types. Indicated value by DCF method 798,000,000 － Appraised by taking into consideration such factors as region and factors Discount rate 4.8％ specific to the subject real estate and referring to such factors as the market capitalization rate of similar types Appraised by adding such factors as future uncertainties to the Terminal capitalization rate 5.2％ abovementioned capitalization rate Indicated value by cost approach 595,000,000 － Ratio of land 84.0％－ Ratio of building 16.0％－ The appraisal value was determined in light of such factors as the attributes of market participants for the subject real estate, by deeming that the Matters considered in reconciliation of indicated values indicated value by income approach that truly reproduces the pricing process and determination of appraisal value from earnings aspects is more credible, and with the indicated value by cost approach as reference.

investigation Investigation date August 2019 Investigator Sompo Risk Management Inc. Long-term repair JPY 5,479 thousand expenses Urgent, short-term Not applicable. repair expenses Replacement value JPY 692,000 thousand PML value 3.03% PML investigator Sompo Risk Management Inc. Master lease company Tosei Community Co., Ltd. Property management Tosei Community Co., Ltd. company Status of leasing Pass-through type master lease agreement Scheduled contract November 5, 2019 date Scheduled leasing November 5, 2019 commencement date From November 5, 2019 to end of November 2020 (one-year contract Contract period renewal thereafter) Total number of 38 tenants Annual rent JPY 51 million Security and JPY 8 million guarantee deposits Total leasable area 2,461.90 m2

Insurance premium 134,410 Appraised by comparing the scheduled amount and same type of cases Other expenses 312,782 miscellaneous expenses, etc. (3) Net operating income 38,728,176 － (NOI=(1)−(2)) (4) Financial interests on Appraised by multiplying a stable deposit in the medium to long term by a 86,500 deposits certain rate. (5) Capital expenditures 3,709,167 Appraised based on the presented ER (6) Net cash flow 35,105,509 － (NCF=(3)+(4)−(5)) Appraised by taking into consideration such factors as region and factors (7) Capitalization rate 5.0％ specific to the subject real estate and referring to such factors as the market capitalization rate of similar types. Indicated value by DCF method 688,000,000 － Appraised by taking into consideration such factors as region and factors Discount rate 4.8％ specific to the subject real estate and referring to such factors as the market capitalization rate of similar types Appraised by adding such factors as future uncertainties to the Terminal capitalization rate 5.2％ abovementioned capitalization rate Indicated value by cost approach 573,000,000 － Ratio of land 86.0％－ Ratio of building 14.0％－ The appraisal value was determined in light of such factors as the attributes of market participants for the subject real estate, by deeming that the Matters considered in reconciliation of indicated values indicated value by income approach that truly reproduces the pricing process and determination of appraisal value from earnings aspects is more credible, and with the indicated value by cost approach as reference.

investigation Investigation date May 2019 Investigator HI International Consultant Co., Ltd. Long-term repair JPY 7,395 thousand expenses Urgent, short-term JPY 1,490 thousand repair expenses Replacement value JPY 811,000 thousand PML value 8.26% PML investigator Sompo Risk Management Inc. Master lease company Tosei Community Co., Ltd. Property management Tosei Community Co., Ltd. company Status of leasing Pass-through type master lease agreement Scheduled contract November 5, 2019 date Scheduled leasing November 5, 2019 commencement date From November 5, 2019 to end of November 2020 (one-year contract Contract period renewal thereafter)

Total number of 41 tenants Annual rent JPY 49 million Security and JPY 6 million guarantee deposits Total leasable area 3,265.28 m2 Total leased area 3,092.00 m2

(2) Operating expenses 17,849,000 － Maintenance and Appraised based on the scheduled maintenance and management fee and 5,040,000 management fee the level of maintenance and management fee of similar real estate. Appraised based on the level of utilities expenses of similar real estate and Utilities expenses 711,000 actual income. Appraised by taking into consideration such factors as the annual average Repair expenses 4,738,000 amount of medium- to long-term repair and renewal expenses in the engineering report. Appraised based on the scheduled fee rate for property management Property management fee 1,524,000 services, and by verifying with the property management fee rate of similar real estate. Appraised by taking into consideration the regional practices and the factors Tenant leasing cost, etc. 2,306,000 specific to the subject real estate Property taxes 3,349,000 Appraised based on such factors as the fiscal 2019 taxation statement. Appraised based on such factors as the estimate amount of insurance Insurance premium 158,000 premium and the insurance premium rate of similar real estate. Other expenses 23,000 Recorded use fee of overhead contact line for joint use as other expenses. (3) Net operating income 34,193,000 － (NOI=(1)−(2)) (4) Financial interests on 41,000 Appraised financial interests at investment return of 1.0%. deposits Appraised by taking into consideration such factors as the annual average (5) Capital expenditures 4,832,000 amount of medium- to long-term repair and renewal expenses in the engineering report. (6) Net cash flow 29,402,000 － (NCF=(3)+(4)−(5)) Appraised by adding/subtracting the spread attributable to the location conditions, building conditions and other conditions of the subject real (7) Capitalization rate 4.6％ estate, and taking into account such factors as future uncertainties and the market capitalization rate for similar real estate. Indicated value by DCF method 616,000,000 － Appraised by reference to such factors as the investment capitalization rate Discount rate 4.4％ of similar real estate, and comprehensively taking into account such factors as the factors specific to the subject real estate. Appraised by reference to such factors as the market capitalization rate of similar real estate, and comprehensively taking into account such factors as Terminal capitalization rate 4.8％ future trends in the investment capitalization rate, risks of the subject real estate as an investment target, general projection of the future economic growth rate and trends in real estate prices and rent. Indicated value by cost approach 597,000,000 － Ratio of land 74.5％－ Ratio of building 25.5％－ Deeming that the indicated value by income approach derived from the Matters considered in reconciliation of indicated values and pricing process from earnings aspects is a credible value that more truly determination of appraisal value reflects the actual market state, the indicated value by income approach was employed with the indicated value by cost approach as reference.

Property name Rd-31 Suning Kitamatsudo Type of specified asset Trust beneficiary right Anticipated acquisition price JPY 482 million Scheduled acquisition date November 5, 2019 Trustee Mitsubishi UFJ Trust and Banking Corporation Trust establishment date August 30, 2019 Trust expiration date August 31, 2029 Previous owner (Previous Tosei Corporation beneficiary) Location (indication of 426-1 Hanashita Aza Kamihongo Matsudo-shi, Chiba residential address) Floor area ratio / Building 300%／90%(Note) coverage ratio Land Use district Neighborhood commercial district Site area 421.04 m2 Type of Proprietary ownership ownership Construction March 2006 completion Structure and Steel-fram floors 6 floors above ground Building Use Residential Total floor area 1,531.86 m2 Type of Proprietary ownership ownership Appraisal value JPY496 million Appraisal firm Japan Valuers Co., Ltd. Building condition

investigation Investigation date August 2019 Investigator Sompo Risk Management Inc. Long-term repair JPY 2,772 thousand expenses Urgent, short-term Not applicable. repair expenses Replacement value JPY 414,000 thousand PML value 3.17% PML investigator Sompo Risk Management Inc. Master lease company Tosei Community Co., Ltd. Property management Tosei Community Co., Ltd. company Status of leasing Pass-through type master lease agreement Scheduled contract November 5, 2019 date Scheduled leasing November 5, 2019 commencement date From November 5, 2019 to end of November 2020 (one-year contract Contract period renewal thereafter)

Total number of 42 tenants Annual rent JPY 34 million Security and JPY 2 million guarantee deposits

(2) Operating expenses 9,427,567 － Maintenance and Appraised by comparing and considering the scheduled amount and same 1,560,000 management fee type of cases Appraised by comparing and considering the actual result and same type of Utilities expenses 866,952 cases Appraised based on the presented ER (includes restoration costs for the Repair expenses 1,643,782 exclusive space) Appraised by comparing and considering same-type cases based on the Property management fee 1,298,150 scheduled management fee plan (includes CM fees) Tenant leasing cost, etc. 1,770,629 Appraised based on historical data Property taxes 2,034,444 Appraised based on the actual amount of fiscal 2019 Insurance premium 80,220 Appraised by comparing the scheduled amount and same type of cases

Other expenses 173,390 miscellaneous expenses, etc. (3) Net operating income 25,259,054 － (NOI=(1)−(2)) (4) Financial interests on Appraised by multiplying a stable deposit in the medium to long term by a 28,268 deposits certain rate. (5) Capital expenditures 1,795,000 Appraised based on the presented ER (6) Net cash flow 23,492,322 － (NCF=(3)+(4)−(5)) Appraised by taking into consideration such factors as region and factors (7) Capitalization rate 4.7％ specific to the subject real estate and referring to such factors as the market capitalization rate of similar types. Indicated value by DCF method 492,000,000 － Appraised by taking into consideration such factors as region and factors Discount rate 4.5％ specific to the subject real estate and referring to such factors as the market capitalization rate of similar types Appraised by adding such factors as future uncertainties to the Terminal capitalization rate 4.9％ abovementioned capitalization rate Indicated value by cost approach 311,000,000 － Ratio of land 65.0％－ Ratio of building 35.0％－ The appraisal value was determined in light of such factors as the attributes of market participants for the subject real estate, by deeming that the Matters considered in reconciliation of indicated values indicated value by income approach that truly reproduces the pricing process and determination of appraisal value from earnings aspects is more credible, and with the indicated value by cost approach as reference.

investigation Investigation date August 2019 Investigator Sompo Risk Management Inc. Long-term repair JPY 3,299 thousand expenses Urgent, short-term Not applicable. repair expenses Replacement value JPY 454,000 thousand PML value 8.83% PML investigator Sompo Risk Management Inc. Master lease company Tosei Community Co., Ltd. Property management Tosei Community Co., Ltd. company Status of leasing Pass-through type master lease agreement Scheduled contract November 5, 2019 date Scheduled leasing November 5, 2019 commencement date From November 5, 2019 to end of November 2020 (one-year contract Contract period renewal thereafter)

Total number of 19 tenants Annual rent JPY 28 million Security and JPY 3 million guarantee deposits Total leasable area 1,263.32 m2 Total leased area 1,223.32 m2

Disclaimer: This document is an English translation of a press release for public announcement concerning acquisition of real estate trust beneficiary rights and leases by Tosei Reit Investment Corporation, and has not been prepared for the purpose of solicitation of investment. We caution investors to refer to Tosei Reit’s prospectus and notice of amendments thereto, if any, without fail and to undertake investment at their own decision and responsibility. 45 Summary of real estate appraisal report Property name T's garden Tanashi Appraisal JPY323 million value Appraisal firm Japan Real Estate Institute Date of value August 31, 2019 Item Details Description, etc. Estimated by correlation of the indicated value by direct capitalization Indicated value by income approach 323,000,000 method with the indicated value by DCF method as both values are deemed to be of comparable standards. Indicated value by direct Appraised as the net cash flow regarded as being stable in the medium to 326,000,000 capitalization method long term, discounted by the capitalization rate. (1) Operating revenue ((a)−(b)) 28,220,000 － Appraised based on the unit level of rent, etc. receivable in a stable manner (a) Gross potential income 30,312,000 over the medium to long term. Appraised based on stable occupancy rate level over the medium to long (b) Vacancy loss, etc. 2,092,000 term. (2) Operating expenses 10,518,000 － Maintenance and Appraised based on the scheduled maintenance and management fee and 4,000,000 management fee the level of maintenance and management fee of similar real estate. Appraised based on the level of utilities expenses of similar real estate and Utilities expenses 350,000 actual income. Appraised by taking into consideration such factors as the annual average Repair expenses 1,730,000 amount of medium- to long-term repair and renewal expenses in the engineering report. Appraised based on the scheduled fee rate for property management Property management fee 1,200,000 services, and by verifying with the property management fee rate of similar real estate. Appraised by taking into consideration the regional practices and the factors Tenant leasing cost, etc. 1,038,000 specific to the subject real estate. Property taxes 2,119,000 Appraised based on such factors as the fiscal 2019 taxation statement. Appraised based on such factors as the estimate amount of insurance Insurance premium 81,000 premium and the insurance premium rate of similar real estate Other expenses 0 There are no expenses otherwise to record as other expenses. (3) Net operating income 17,702,000 － (NOI=(1)−(2)) (4) Financial interests on 34,000 Appraised financial interests at investment return of 1.0%. deposits Appraised by taking into consideration such factors as the annual average (5) Capital expenditures 2,400,000 amount of medium- to long-term repair and renewal expenses in the engineering report. (6) Net cash flow 15,336,000 － (NCF=(3)+(4)−(5)) Appraised by adding/subtracting the spread attributable to the location conditions, building conditions and other conditions of the subject real (7) Capitalization rate 4.7％ estate, and taking into account such factors as future uncertainties and the market capitalization rate for similar real estate. Indicated value by DCF method 319,000,000 － Appraised by reference to such factors as the investment capitalization rate Discount rate 4.5％ of similar real estate, and comprehensively taking into account such factors as the factors specific to the subject real estate. Appraised by reference to such factors as the market capitalization rate of similar real estate, and comprehensively taking into account such factors as Terminal capitalization rate 4.9％ future trends in the investment capitalization rate, risks of the subject real estate as an investment target, general projection of the future economic growth rate and trends in real estate prices and rent. Indicated value by cost approach 317,000,000 － Ratio of land 70.4％－ Ratio of building 29.6％－ Deeming that the indicated value by income approach derived from the Matters considered in reconciliation of indicated values and pricing process from earnings aspects is a credible value that more truly determination of appraisal value reflects the actual market state, the indicated value by income approach was employed with the indicated value by cost approach as reference.

4. Seller profile

(1) Name Tosei Corporation (2) Location 4-2-3 Toranomon, Minato-ku, Tokyo Name and title of Seiichiro Yamaguchi (3) representative President and CEO Revitalization business, development business, rental business, fund, (4) Business description consulting business and property management business of real estate and hotele business (5) Capital JPY 6.5 billion (as of May 31, 2019) (6) Established February 2, 1950 (7) Net assets JPY 54.8 billion (as of May 31, 2019) (8) Total assets JPY 145.8 billion (as of May 31, 2019) Large shareholders Seiichiro Yamaguchi (27.1%), Zeus Capital Ltd. (12.6%), and KBL (9) and their EPB S.A. 107704 (10.2%) shareholding ratios (10) Relationship with investment corporation or asset management company As of today, Tosei Reit does not hold any shares in the concerned company. The concerned company holds 5.03% (Note) of the number

of Tosei Reit investment units issued and outstanding as of today. In

Capital relationship addition, being the parent company (100% stake) of the Asset

Management Company, the concerned company falls under the

category of interested person, etc. as provided in the Investment Trusts Act. As of today, the concerned company is a company from which officers Personnel and employees other than the representative director, a senior

relationship managing director, the part-time director and the auditor of the Asset

Management Company are seconded. The concerned company has executed a sponsor support memorandum with Tosei Reit and the Asset Management Company. Business In addition, the concerned company leases Tama Center and Musashi relationship Fujisawa Tosei Building and a part of JPT Motomachi Building, which are portfolio assets of Tosei Reit, based on a fixed-rent master lease agreement. The concerned company falls under the category of related party of Tosei Reit. In addition, as stated above, the concerned company falls Related-party status under the category of interested person, etc. of the Asset Management Company as provided in the Investment Trusts Act. (Note) The ratio of the number of owned investment units to the total number of issued investment units is rounded down to two decimal places.

5. Status of property buyers, etc. The following is the status of property acquisition, etc. from Tosei Reit’s interested person, etc., special purpose company for which the interested person, etc. has control over the decision-making body (subsidiary) or other party with which there is a special relationship (“party having special vested interest”) (where ① is the name of the company or person, ② is the relationship with the party having special vested interest, and ③ is the acquisition background/reason, etc.). In real estate sale and purchase, at Tosei Reit, the (anticipated) acquisition price / (anticipated) disposition price is, in principle, determined by taking into consideration the indicated value by the income approach calculated by the direct capitalization method. Tosei Corporation’s acquisition price, on the other hand, is determined by negotiation between Tosei Corporation and the previous, previous owner (Tosei Corporation’s acquisition of the respective property is followed by Tosei Corporation acquiring the trust beneficiary right through trust transfer of the respective property; therefore, the “previous, previous

Previous, Previous, previous, Previous owner previous owner previous owner ①, ②, and ③ ①, ②, and ③ Property name Acquisition price ①, ②, and ③ Acquisition price Acquisition price (Note 1) (Note 1) Acquisition timing (Note 1) Acquisition Acquisition timing timing Kannai Wise ① Tosei Corporation Other than a － Building ② Parent company of the Asset party having Management Company special vested ③ Acquired for the purpose of real interest estate investment (Note 2) January 2018 －－－－ Hon-Atsugi Tosei ① Tosei Corporation Other than a － Building ② Parent company of the Asset party having Management Company special vested ③ Acquired for the purpose of real interest estate investment JPY 842 million March 2019 －－－－ T's garden ① Tosei Corporation Other than a Kitakashiwa ② Parent company of the Asset party having Management Company special vested － ③ Acquired for the purpose of real interest estate investment (Note 2) March 2015 －－－－ Century Urawa ① Tosei Corporation Other than a ② Parent company of the Asset party having Management Company special vested － ③ Acquired for the purpose of real interest estate investment JPY 893 million July 2019 －－－－ T's garden ① Tosei Corporation Other than a Nagayama ② Parent company of the Asset party having Management Company special vested － ③ Acquired for the purpose of real interest estate investment (Note 2) July 2016 －－－－ Grandeur ① Tosei Corporation Other than a Fujimino ② Parent company of the Asset party having － Management Company special vested

6. Overview of brokerage There was no brokerage for the abovementioned asset acquisition transaction.

7. Acquisition schedule Acquisition decision date October 10, 2019 Acquisition contract date October 10, 2019 Scheduled payment date November 5, 2019 and December 2, 2019 Scheduled acquisition date November 5, 2019 and December 2, 2019 (Note) The “scheduled payment date” and “scheduled acquisition date” is subject to change in accordance with the real estate trust beneficiary right sale and purchase contract.

8. Impact on Tosei Reit’s Financial Standing in the event of a Failure of the Fulfillment of Forward Commitment, etc. Concerning the to-be-acquired assets, Tosei Reit concluded on October 10, 2019, the real estate trust beneficiary right sale and purchase contract(s) (the “Sale and Purchase Contract(s)”) that sets completion of fund procurement for the purchase of the to-be-acquired assets, etc. as preconditions (the “Preconditions”) for payment for the purchase, with the current beneficiary right holder or a party scheduled to be a beneficiary (the “Seller”). the Sale and Purchase Contract(s) for Kannai Wise Building and T's garden Kitakashiwa fall(s) under the category of forward commitment, etc. (referring to a postdated sales contract under which payment and delivery shall be made at least one month after the conclusion of the contract(s), or any other contract similar thereto; the same applies hereinafter) stipulated in “Comprehensive Guidelines for Supervision of Financial Instruments Business Operators” of the Financial Services Agency. The Sale and Purchase Contract(s) stipulate(s) that when the Seller or Tosei Reit violates obligations set forth in the contract in material respects and is unable to achieve the objective of the contract due to the violation, the breached party may cancel the contract with a notice allowing for a reasonable period of time and the breaching party shall pay to the breached party a penalty equivalent to 20% of the sale and purchase price (the amount equivalent to consumption tax and local consumption tax excluded). However, it is stipulated that when the Preconditions are not fulfilled, Tosei Reit may cancel the Sale and Purchase Contract(s) without paying the penalty by notifying the Seller. Therefore, Tosei Reit believes that its financial standing, etc. are unlikely to be impacted significantly even when forward commitment, etc. for Kannai Wise Building and T's garden Kitakashiwa are not executed due to incompletion of fund procurement.

9. Future outlook The scheduled acquisition date of the to-be-acquired assets is November 5, 2019 and December 2, 2019 and there is no change to the outlook of operating results for the fiscal period ending October 31, 2019 (10th Period, May 1, 2019-Oct. 31, 2019) of Tosei Reit. For the forecast for operating results and cash distribution for the fiscal period ending April 30, 2020 11th Period, Nov. 1, 2019 – Apr. 30, 2020) and October 31, 2020 (12th Period, May 1, 2020- Oct. 31, 2020), please refer to the “Notice Concerning Revision to Forecasts for Operating Results and Cash Distribution for the Fiscal Period Ending April 30, 2020 (11th Period) and Forecasts for Operating Results and Cash Distribution for the Fiscal Period Ending October 31, 2020 (12th Period)” dated today.

* This material is distributed to the press club of the Tokyo Stock Exchange (Kabuto Club), the press club of the Ministry of Land, Infrastructure, Transport and Tourism, and the press club for construction trade publications of the Ministry of Land, Infrastructure, Transport and Tourism. * Tosei Reit Investment Corporation website: http://www.tosei-reit.co.jp/en/

Kannai Wise Building

Hon-Atsugi Tosei Building

T's garden Kitakashiwa

Century Urawa

T's garden Nagayama

Grandeur Fujimino

T's garden Hitotsubashi-gakuen

T's garden Warabi II

T's garden Warabi III

T's garden Kashiwa

Suning Kitamatsudo

T's garden Tanashi

Tama Center Tosei O-01 30.1 Tama-shi, Tokyo 4.9 November 28, 2014 Building 3,370

O-02 KM Shinjuku Building 28.0 Shinjuku-ku, Tokyo 3.0 November 28, 2014 2,057

Nihonbashi-Hamacho O-03 28.8 Chuo-ku, Tokyo 2.7 November 28, 2014 Building 1,830

Kannai Tosei Building 35.5 Yokohama-shi, O-04 6.0 November 17, 2015 II (Note 5) Kanagawa 4,100

Nishi Kasai Tosei O-05 25.6 Edogawa-ku, Tokyo 1,710 2.5 November 17, 2015 Building

Shin-Yokohama Center Yokohama-shi, O-06 28.7 1,364 2.0 November 17, 2015 Building Kanagawa

O-07 Nishidai NC Building 27.4 Itabashi-ku, Tokyo 1,481 2.2 August 31, 2016

JPT Motomachi Yokohama-shi, O-08 27.8 2,377 3.5 November 2, 2016 Building Kanagawa

Hakusan Asanomi O-09 26.1 Bunkyo-ku, Tokyo 1,380 2.0 November 2, 2016 Building

Chojamachi Duo Yokohama-shi, O-10 26.2 1,300 1.9 November 2, 2017 Building Kanagawa

Yokohama-shi, O-11 NU Kannai Building 32.5 3,800 5.5 November 2, 2018 Kanagawa

Higashitotsuka West Yokohama-shi, O-12 26.5 2,650 3.9 November 2, 2018 Building Kanagawa

Yokohama-shi, O-13 Kannai Wise Building 28.5 2,050 3.0 December 2, 2019 Kanagawa

Hon-Atsugi Tosei Atsugi-shi, O-14 26.6 880 1.3 November 5, 2019 Building Kanagawa

Offices subtotal 30,349 44.1 -

26.8 Chiba-shi, Chiba 2,380 3.5 November 28, 2014 Rt-01 Inage Kaigan Building

Musashi Fujisawa Tosei 22.1 Iruma-shi, Saitama 1,950 2.8 November 17, 2015 Rt-02 Building

Kamagaya-shi, 16.2 310 0.5 November 2, 2016 Rt-03 Selection Hatsutomi Chiba

33.3 Chiba-shi, Chiba 1,400 2.0 November 2, 2017 Rt-04 Wako Building

Offices and retail facilities combined subtotal 36,389 52.9 -

Rd-01 T’s garden Koenji 8.6 Suginami-ku, Tokyo 2.2 November 28, 2014 1,544

Rd-02 Live Akabane 30.5 Kita-ku, Tokyo 1,227 1.8 November 28, 2014

Rd-03 Gekkocho Apartment 11.4 Meguro-ku, Tokyo 1,000 1.5 November 28, 2014

T’s garden Kawasaki-shi, Rd-04 10.6 980 1.4 November 28, 2014 Kawasakidaishi Kanagawa

Rd-05 Abitato Kamata 28.2 Ota-ku, Tokyo 836 1.2 November 28, 2014

Yokohama-shi, Rd-07 Avenir Shirotae 24.5 780 1.1 November 28, 2014 Kanagawa

Dormitory Rd-08 27.1 Machida-shi, Tokyo 600 0.9 November 28, 2014 Haramachida

SEA SCAPE Chiba Rd-09 11.5 Chiba-shi, Chiba 2,800 4.1 November 17, 2015 Minato

Kamagaya-shi, Rd-10 Prime Garden 24.5 600 0.9 November 2, 2016 Chiba

Katsushika-ku, Rd-11 T’s garden Shin-Koiwa 21.5 670 1.0 November 2, 2016 Tokyo

Rd-12 Twin Avenue 27.5 Nerima-ku, Tokyo 1,880 2.7 November 2, 2017

Milestone Higashikurume-shi, Rd-13 29.9 1,650 2.4 November 2, 2017 Higashikurume Tokyo

Kawaguchi-shi, Rd-14 Lumiere No.3 24.9 1,420 2.1 November 2, 2017 Saitama

T’s garden Funabashi-shi, Rd-15 28.5 860 1.3 November 2, 2017 Nishifunabashi Chiba

Yokohama-shi, Rd-16 Quest Yamatedai 30.5 710 1.0 November 2, 2017 Kanagawa

Saitama-shi, Rd-17 Sancerre Yonohonmachi 28.8 600 0.9 November 2, 2017 Saitama

Rising Place Kawasaki Kawasaki-shi, Rd-18 2.5 1,812 2.6 November 2, 2018 No.2 Kanagawa

Rd-19 J Palace Sakuradai 25.5 Nerima-ku, Tokyo 1,090 1.6 November 2, 2018

Yokohama-shi, Rd-20 Personnage Yokohama 28.7 740 1.1 November 2, 2018 Kanagawa

T's garden Nishihachioji Rd-21 22.6 Hachioji-shi, Tokyo 600 0.9 November 2, 2018 West

Rd-22 T's garden Ojima 29.8 Koto-ku,Tokyo 1,020 1.5 May 24, 2019

Saitama-shi, Rd-24 Century Urawa 30.4 980 1.4 November 5, 2019 Saitama

Rd-25 T's garden Nagayama 33.2 Tama-shi, Tokyo 850 1.2 November 5, 2019

Rd-26 Grandeur Fujimino 22.5 Fujimi-shi, Saitama 822 1.2 November 5, 2019

T's garden Rd-27 31.3 Kodaira-shi, Tokyo 760 1.1 November 5, 2019 Hitotsubashi-gakuen

Kawaguchi-shi, Rd-28 T's garden WarabiⅡ 32.4 750 1.1 November 5, 2019 Saitama

Kawaguchi-shi, Rd-29 T's garden WarabiⅢ 29.8 655 1.0 November 5, 2019 Saitama

Rd-30 T's garden Kashiwa 27.5 Kashiwa-shi, Chiba 595 0.9 November 5, 2019

Rd-31 Suning Kitamatsudo 13.5 Matsudo-shi, Chiba 482 0.7 November 5, 2019

Nishitokyo-shi, Rd-32 T's garden Tanashi 27.9 310 0.5 November 5, 2019 Tokyo

Residential properties subtotal 32,393 47.1 -

26.0 Total/Average - 68,782 100.0 - (Note 5)

(Note 1) “Building age” is the number of years that has elapsed from the date of new construction in the real estate registry to August 31, 2019. In addition, that in the total/average column is the figure that is the weighted average based on (anticipated) acquisition price. (Note 2) “(Anticipated) Acquisition price” is the sale and purchase price stated in the real estate trust beneficiary right sale and purchase contract for each asset under management or each to-be-acquired asset. The sale and purchase price exclude consumption tax, local consumption tax and various expenses required for the acquisition. (Note 3) “Investment ratio” is the ratio of acquisition (anticipated) price for the assets under management or to-be- acquired assets to the sum total amount of acquisition (anticipated) price, and the figures are rounded to the first decimal place. Therefore, the total figure of the investment ratio may not correspond with that stated in the column “Total/Average.” (Note 4) “(Anticipated) Acquisition date" is the date when Tosei Reit acquired each asset under management or the anticipated acquisition date stated in the Sale and Purchase Contract(s) for each to-be-acquired asset. Anticipated acquisition date is subject to change in accordance with the Sale and Purchase Contract(s). (Note 5) Kannai Tosei Building II was constructed with construction of a parking lot portion in May 1980 and later extended with an office portion. The construction completion entry is the date of new construction in the real estate registry for the office portion, which is the major building portion, and the building age for Kannai Tosei Building II and the average building age are the number of years calculated based on that date of new construction. Although there is more than one building, building age for T’s garden Kitakashiwa and average building age are a weighted average of years based on the total leasable area of each building.