ORIX JREIT Announces Property Acquisitions “Gaien Nishi-Dori Building and PRIZE TENJIN”

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: Junko Kanazawa Director, Corporate Senior Vice President TEL ：+81 3 5418 4858

ORIX JREIT Announces Property Acquisitions “Gaien Nishi-dori Building and PRIZE TENJIN”

TOKYO, August 15, 2016 — ORIX JREIT Inc. (“OJR”) announced that our asset management company, ORIX Asset Management Corporation (“OAM”), passed a resolution on the property acquisitions as described below.

1. Summary of Properties to be acquired

Yield after Acquisition Appraisal NOI Yield Area Seller (Note4) Depreciation Property Type (Note2) (Note3) Price Value (Note5) (million yen) (million yen) (%) (%) 6 Central Tokyo Gaien Nishi-dori Building Offices Wards Sponsor 9,000 9,150 4.2 3.8 (Shibuya-ku) Other Areas Retail PRIZE TENJIN (Fukuoka-shi, Sponsor 4,550 4,740 4.7 4.0 Facilities Fukuoka)

(Note6) - Existing Portfolio 5.0 3.8 Notes: 1. “Properties to be acquired” refers to the each property or collectively to all the properties indicated above. 2. “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.” “Other Parts of the Greater Tokyo Area” refers to parts of Tokyo other than the “6 Central Tokyo Wards” and “Remaining Tokyo Wards,” Kanagawa, Saitama and Chiba Prefectures. “Other areas” refers to areas other than the “6 Central Tokyo Wards,” “Remaining Tokyo Wards” and “Other Parts of the Greater Tokyo Area”. 3. As to the Seller, “Sponsor” indicates “ORIX Group.” “ORIX Group” refers to ORIX Corporation and its group companies. 4. The "NOI Yield” of Properties to be acquired is calculated by using the formula: “Net Revenue” in the direct capitalization method recorded in the appraisal reports at the time of decision to acquire / Scheduled acquisition price; the figures are rounded to the first decimal place. 5. The "Yield after Depreciation” of Properties to be acquired is calculated by using the formula: (“Net revenue” in the direct capitalization method recorded in the appraisal reports at the time of decision to acquire – “estimated depreciation” assumed by OAM) / Scheduled acquisition price; the figures are rounded to the first decimal place. 6. “Existing Portfolio” refers to the properties owned as of February 29, 2016 added by the five properties (ORIX Yodoyabashi Bldg., Hamamatsu Act Tower, Sapporo Brick Cube, Takanawa Duplex C’s and Albore Kagoshima) acquired in/after the 29 th fiscal period ending August 31, 2016 and deducted by “Nihonbashi East Bulding ” 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 February 29, 2016 and the figures for the five properties acquired after in/after the 29th fiscal period ending August 31, 2016 are calculated based on the figures in appraisal reports at the time of acquisition. Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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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, concerns over the economic slowdown of emerging countries are increasing and an unstable condition is continuing due to the rise in geopolitical tension and the impact of “Brexit”. Under such backdrop, the expected yield for all property types continues to remain low in Japan’s real estate trading market but some signals of bottoming out can be observed. In addition, although there are differences in the improvement status of rental conditions, depending on the individual characteristics of properties in the leasing market, vacancy rates of offices are declining and rents are generally on the rise. The trend is also beginning to spread into regional cities. As for the shop-visit type tenant block in offices and urban-type retail facilities, expectation for rent increment is increasing against the background of the recovery of companies’ business performances and improvement of consumer’s attitude. However, the timing and scale of full-fledged increase in rents remain difficult to predict. In such real estate market, OJR will utilize its three strengths of i) Diversified REIT, ii) ORIX Synergy (Note) and iii) Operating Expertise to implement an ongoing external growth strategy based on the following investment policy while grasping change of economy flexibly.

‹ Invest selectively regardless of property types by utilizing the strength as a diversified REIT, extensive pipelines of ORIX Group and expertise backed by ORIX Synergy while managing risks. ‹ Continue to consider property replacement by grasping the market environment.

Based on the above external strategy, OJR has decided to acquire an office located in Shibuya ward, Tokyo and an urban-type retail facility located in Fukuoka city utilizing the pipelines of ORIX Group.

We will aim for the sustainable growth of unitholder value by leveraging our operational strength to effectively combine our external growth strategy, internal growth strategy, and financial strategy.

Note: The “ORIX Synergy” refers to the cooperative relationship between ORIX Group companies and OJR.

3. Acquisition Summary 1) Gaien Nishi-dori Building Property to be acquired : Real estate trust beneficial interest (Scheduled) (Note 1) Acquisition price : ¥9,000,000,000 (excluding national and local consumption taxes, etc.) Contract date : August 15, 2016 Scheduled acquisition date : September 30, 2016 (Note 2) Current owner and seller : RD Legend Alpha Tokutei Mokuteki Kaisha Proceeds from the issuance of new investment units through public offering Funding method : and third party allotment, borrowings and cash on hand (Note 3) Payment term : 100% on delivery

2) PRIZE TENJIN Property to be acquired : Real estate trust beneficial interest Acquisition price : ¥4,550,000,000 (excluding national and local consumption taxes, etc.) Contract date : August 15, 2016 Scheduled acquisition date : October 3, 2016 (Note 2) Current owner and seller : ORIX Corporation Proceeds from the issuance of new investment units through public offering Funding method : and third party allotment, borrowings and cash on hand (Note 3) Payment term : 100% on delivery

Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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Notes: 1. As of today, no trust has been established for Gaien Nishi-dori Building. OJR is acquiring the real estate trust beneficiary interest established by previous owner for it as the acquisition. 2. The trust beneficial interest sale and purchase agreement for Properties to be acquired (the “Purchase and Sales Agreements”) fall under the category of Forward Commitment, etc. as provided in the Comprehensive Guideline for Supervision of Financial Instruments Business Operators, etc. set by the Financial Services Agency as they are postdated Purchase and Sales Agreements where the settlement and delivery of the properties are to take place one month or more after the conclusion of agreement and such. ‹ Financial Impact on OJR in the Event that it Fails to Fulfill the Forward Commitment, Etc. In this regard, the Purchase and Sales Agreements have cancellation provisions that set forth the following conditions. i. When either the seller or the buyer breaches the provisions of the Purchase and Sales Agreement (such a party referred to as the “Breaching Party”), the counterparty shall set a certain period and demand the Breaching Party to meet its obligations within the period. If the Breaching Party fails to correct its violations within that period, the counterparty shall be able to cancel the Purchase and Sales Agreement. ii. When either the seller or the buyer breaches the provisions of the Purchase and Sales Agreement, the Breaching Party shall be obliged to compensate or indemnify for the resulting damages, etc. of the counterparty within the scope of an equivalent cause-and-effect relationship. iii. After the conclusion of the Purchase and Sales Agreements, the seller confirms that the buyer is scheduled to acquire funds for the properties to be acquired by issuing additional investment units (the “Acquisition Funds”) and if it is the case that the Acquisition Funds for the whole purchase price cannot be reached by the scheduled acquisition date (including cases where the buyer deems the issuance of investment units is unreasonable such as due to the fluctuation of the investment unit price or where it is reasonably assumed that it will not be reached), the buyer may unconditionally terminate the Purchase and Sales Agreements. 3. For details, please refer to the press release “ORIX JREIT Announces Issue of New Investment Units and Secondary Offering of Units” to be announced at a later date.. The details of the borrowings shall be announced at a later date, as soon as it is determined.

4. Summary of Properties to be acquired 1) Gaien Nishi-dori Building Specified asset category Real estate trust beneficiary interest (Scheduled) (Note 1) Trustee Sumitomo Mitsui Trust Bank, Limited (Scheduled) Term of trust agreement September 30, 2016 to September 30, 2026 (Scheduled) Scheduled acquisition date September 30, 2016 Acquisition price ¥9,000,000,000 (excluding national and local consumption taxes, etc.) Appraisal value ¥9,150,000,000 Date of Appraisal August 1, 2016 Appraiser The Tanizawa S ōgō Appraisal Co., Ltd. Address 8-2, 2-chome, Jingumae, Shibuya-ku, Tokyo Approx. 8-minute walk from “Gaiemmae” Station on Tokyo Metro Public transit access Ginza Line Registered Area 1,797.68 m2 *A part “2.33 m2”of the land has been used as a road. Land Usage restrictions Neighborhood commercial zone, Category I residential zone Type of ownership Fee simple ownership Registered usage Retail, Office, Parking Registered December 1991 completion date Type of ownership Fee simple ownership Registered Area 6,440.85 m2 Building Registered Reinforced concrete flat roof, 5 floors with 4 underground floors construction Architect AMORPHE Takeyama & Associates Structural engineer AMORPHE Takeyama & Associates ‹ TAISEI CORPORATION General contractor ‹ Dai Nippon Construction Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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Building Tokyo Metropolitan Government inspection agency Main facilities and ‹ Elevator: 5 specifications ‹ Parking: 60 vehicles (mechanical parking system) Earthquake resistance (with or PML (Note 2) 6% (without) without earthquake (based on Sompo Risk Management & Health Care report) (Note 2) insurance) Previous owner (beneficiary) RD Legend Alpha Tokutei Mokuteki Kaisha Scheduled Property Manager ORIX Facilities Corporation Collateral None Special notes None ‹ The Property is located an approx. 8-minute walk from “Gaiemmae” Station on the Tokyo Metro Ginza Line and boasts a high visibility with concrete exposed appearance and an impressive form facing Gaien Nishi-dori. ‹ The supply-demand balance of office buildings in the Shibuya area is tight, resulting in dropping vacancy rates and an upward trend of Special features of the property rent level. This well-designed property is located in an area preferred by tenants emphasizing creativity and has strong appeal to industries such as IT and media-related companies as well as various foreign affiliated companies. ‹ The office block is occupied by a major IT company. ‹ The road-side retail space is occupied by a dealer of luxury imported cars and a seminar facility. Summary of the Engineering Report Reporting Company Tokio Marine & Nichido Risk Consulting Co., Ltd.

Date of inspection May 26, 2016 ¥157 million Maintenance Cost (Total amount of 12 years from the date of inspection) (Note 3) Replacement Cost ¥2,381 million (Note 3)

Summary of Rental status (as of May 31, 2016) Number of tenants 3 Gross rental income Not-disclosed (Note 4) Security deposits Not-disclosed (Note 4)

Total rent space 5,148.31 m2 Total rentable space 5,148.31 m 2 Occupancy rate 100% ¥371 million per annum (Note 3) (Note) The net operating income (NOI) represents the assumed revenue/expenditure balance under stabilized occupancy, based on the terms of the lease contract, Assumed net operating etc. at the scheduled acquisition date, but excluding extraordinary factors that income (NOI) may occur during the first year of acquisition. The preconditions are as below; these figures are not what OJR expects for the current fiscal year. 1) Occupancy rate:95.5% 2) Taxes: Taxes are calculated on the standard tax amount for fiscal 2016. Notes: 1. As of today, no trust has been established for Gaien Nishi-dori Building. OJR is acquiring the real estate trust beneficiary interest established by previous owner for it as the acquisition. 2. PML (Probable Maximum Loss) shows the ratio (%) of cost of recovering a building after it is damaged to its state before the damage occurred against replacement cost, when assuming an earthquake that may occur once in 475 years in average Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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in probability statistics (recurrence interval of 475 years). The earthquake risk of a building is evaluated based on the event risk curve that shows the relationship of amount of expected loss (horizontal axis) and probability for the loss to exceed the year (vertical axis). However, the risk curve has variability because loss evaluation comes with uncertainties in earthquake resistance performance of the building, behavior of earthquake vibration, etc. Accordingly, the above PML figures use the risk curve with credibility level of 90%, and are rounded to the nearest whole number. 3. Figures are rounded down to the nearest million yen. 4. It is not disclosed as the consent of the tenants could not be obtained.

Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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Photo and Map

Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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2)PRIZE TENJIN Specified asset category Real estate trust beneficiary interest Trustee Sumitomo Mitsui Trust Bank, Limited Term of trust agreement October 3, 2016 to September 30, 2026 (Scheduled) Scheduled acquisition date October 3, 2016 Acquisition price ¥4,550,000,000 (excluding national and local consumption taxes, etc.) Appraisal value ¥4,740,000,000 Date of Appraisal July 1, 2016 Appraiser The Tanizawa S ōgō Appraisal Co., Ltd. Address 23-11, Imaizumi 1-chome, Chuo-ku, Fukuoka-shi, Fukuoka ‹ Approx. 1-minute walk from “Nishitetsu Fukuoka (Tenjin)” Station on Nishi-Nippon Railroad Tenjin-Omuta Line. Public transit access ‹ Approx. 2-minute walk from “Tenjin Minami” Station on Fukuoka City Subway Nanakuma Line. Registered Area 470.34 m2 Land Usage restrictions Commercial zone Type of ownership Fee simple ownership Registered usage Retail Registered August 2009 completion date Type of ownership Fee simple ownership Registered Area 2,914.80 m2 Registered Steel-frame flat roof, 7 floors with 1 underground floor construction Architect KANTOH SEKKEI CO,.LTD Structural engineer KANTOH SEKKEI CO,.LTD Building General contractor TAISEI CORPORATION Building Bureau Veritas Japan Co., Ltd inspection agency ‹ Elevator: 2 Main facilities and ‹ Escalator: 6 specifications ‹ Parking: 5 vehicles (ground space:2, remote places:3) Earthquake resistance (with or PML (Note 1) 2% (without) without earthquake (based on Sompo Risk Management & Health Care report) (Note 1) insurance) Previous owner (beneficiary) ORIX Corporation Scheduled Property Manager FUKUOKA JISHO CO., LTD. Collateral None Special notes None ‹ The property is an urban-type retail facility located in Tenjin area, the largest shopping district in Kyushu, located an approx. 1-minute walk from “Nishitetsu Fukuoka (Tenjin)” Station on the Tenjin-Omuta Line and 2-minute walk from “Tenjin-Minami” Special features of the property Station on the Fukuoka City Subway Nanakuma Line. ‹ Tenjin area is a giant commercial area where department stores, various retail facilities and luxury brand stores are featured and shoppers gather not only from Fukuoka City but also from

Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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neighboring prefectures. It can take in demand from office workers since it is an area where the Fukuoka City Hall as well as various offices such as banks, etc. concentrate. ‹ The property has a high visibility facing “Kokutai-doro” that connects the Tenjin area and JR “Hakata” Station and has excellent promotion effect of tenant images with glass facade. ‹ Further enhancement of convenience in the area is expected as the extension to JR “Hakata” Station on the Fukuoka City Subway Nanakuma Line progress. ‹ The first to third floors are occupied by the Kyushu flagship store of a major men's clothing store, the master lessee of entire the property, and the upper floors are occupied by family restaurants, etc. ‹ The lease agreements concluded with respective tenants are fixed-term lease agreements. Summary of the Engineering Report Reporting Company Tokio Marine & Nichido Risk Consulting Co., Ltd.

Date of inspection May 27, 2016

Maintenance Cost ¥16 million (Total amount of 12 years from the date of inspection) (Note 2)

Replacement Cost ¥542 million (Note 2)

Summary of Rental status (as of May 31, 2016) Number of tenants 1 Gross rental income Not-disclosed (Note 3) Security deposits Not-disclosed (Note 3)

Total rent space 2,936.36 m2 Total rentable space 2,936.36 m 2 Occupancy rate 100% ¥212 million per annum (Note 2) (Note) The net operating income (NOI) represents the assumed revenue/expenditure balance under stabilized occupancy, based on the terms of the lease contract, Assumed net operating etc. at the scheduled acquisition date, but excluding extraordinary factors that income (NOI) may occur during the first year of acquisition. The preconditions are as below; these figures are not what OJR expects for the current fiscal year. 1) Occupancy rate:100% 2) Taxes: Taxes are calculated on the standard tax amount for fiscal 2016. Notes: 1. PML (Probable Maximum Loss) shows the ratio (%) of cost of recovering a building after it is damaged to its state before the damage occurred against replacement cost, when assuming an earthquake that may occur once in 475 years in average in probability statistics (recurrence interval of 475 years). The earthquake risk of a building is evaluated based on the event risk curve that shows the relationship of amount of expected loss (horizontal axis) and probability for the loss to exceed the year (vertical axis). However, the risk curve has variability because loss evaluation comes with uncertainties in earthquake resistance performance of the building, behavior of earthquake vibration, etc. Accordingly, the above PML figures use the risk curve with credibility level of 90%, and are rounded to the nearest whole number. 2. Figures are rounded down to the nearest million yen. 3. It is not disclosed as the consent of the tenant could not be obtained.

Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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Photo and Map

Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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5. Profile of Previous Owner/Seller 1) Gien Nishi-dori building (as of July 21, 2016) Company name RD Legend Alpha Tokutei Mokuteki Kaisha (“the Company”) c/o Tokyo Kyodo Accounting Office Address 3-1-1 Marunouchi, Chiyoda-ku, Tokyo Representative Director ：Masato Kaida Transfer of the specified assets and operations related to its management and Primary business disposal Shareholders’ equity ¥0.1 million Not-disclosed Major shareholders * Because the consent of the company could not be obtained Not-disclosed Net Assets *Because the consent of the company could not be obtained Not-disclosed Total Assets *Because the consent of the company could not be obtained Date of establishment February 6, 2007 Relationships with OJR or OAM There is no capital relationship required for reporting between OJR and the Company. However, ORIX Corporation, the parent company of OAM Capital relationship (a ”related party” of OAM as stipulated in the Act on Investment Trusts and Investment corporations (the “Investment Trusts Act”)) and OJR have preferred equity in the Company

There is no personal relationship required for reporting between OJR or Personal relationships OAM and the Company

There is no business relationship required for reporting between OJR or Business relationships OAM and the Company The Company does not fall under “related party” of OJR. However, ORIX Real Estate Investment Advisors corporation (a “related Party” of OAM as Applicability to stipulated in the Investment Trusts Act) is contracted to provide asset related parties management for the Company. The Company falls under “related Party” as stipulated in the “Affiliated Company Transaction Regulations,” which are internal rules of OAM.

2) PRIZE TENJIN (as of July 21, 2016) Company name ORIX Corporation (“the Company”) Address 2-4-1 Hamamatsu-cho, Minato-ku, Tokyo Representative President and CEO: Makoto Inoue Lease, installment sales and other financial services, real estate-related Primary business businesses, etc. Shareholders’ equity ¥220,469 million (as of March 31, 2016) Major shareholders Japan Trustee Services Bank, Ltd. (trust account) (as of March 31, 2016) Net Assets ¥2,472,819 million yen (as of March 31, 2016) Total Assets ¥10,996,906 million yen (as of March 31, 2016) Date of establishment March 28, 1950 Relationships with OJR or its asset management company

There is no capital relationship required for reporting between OJR and the

Capital relationship Company. However, the Company is the parent company of OAM and falls

under “related parties” of OAM as stipulated in the Investment Trusts Act.

Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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60 persons of the officers and employees of OAM are seconded from the Personal relationships Company as of July 31, 2016. OJR acquired three properties (Total acquisition price: ¥7,950 million) in the th Business relationships 28 Fiscal Period ended February 28 2016 and two properties (Acquisition price: ¥6,312) in the 29 th Fiscal Period ending August 31 2016 from the Company. The Company does not fall under “related party” of OJR. As mentioned Applicability to above, the Company falls under “the related parties” of OAM as stipulated in related parties the Investment Trusts Act.

6. Information of previous Ownership 1) Gaien Nishi-dori Building Previous owner Owner before previous owner RD Legend alpha Tokutei Mokuteki Not a party having special Company name Kaisha relationship of interest Special relationships Refer to Section 5 “Profile of － involved Previous Owner/Seller” above Background to and reason for Acquired for the Purpose of － acquisition investment and management Acquisition date May 11, 2007 － Omitted, as previous owner held － Acquisition price property for over a year

2) PRIZE TENJIN Previous owner Owner before previous owner Not a party having special Company name ORIX Corporation relationship of interest Special relationships Refer to Section 5 “Profile of － involved Previous Owner/Seller” above Background to and reason for Acquired for the Purpose of － acquisition investment and management Acquisition date March 31, 2016 － Acquisition price Not-disclosed (Note) － (Note) Acquisition price is not disclosed because the consent of the owner before previous owner could not be obtained

7. Profile of Intermediary (All Properties) None

8. Transaction with Related-Party The following transaction has followed procedures in accordance with the Affiliated Company Transaction Regulations which are internal rules of OAM.

1) Property Acquisition OJR will acquire “Gaien Nishi-dori Building.” from RD Legend Alpha Tokutei Mokuteki kaisha and “PREZE TENJIN” from ORIX Corporation. For a summary of these related parties, please see “5. Profile of Previous Owner/Seller” above.

Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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2) Property management commission For “Gaien Nishi-dori Building,” OJR will conclude property management operations agreements with ORIX Facilities Corporation. For a summary of this related party, please see below.

Gaien Nishi-dori Building (as of July 22, 2016) Company name ORIX Facilities Corporation (“the Company”) Gobouomiya-cho 99, Bukkoji-kudaru, Omiya-dori, Shimogyo-ku, Kyoto-shi, Address Kyoto Representative CEO ：Koji Miyake Real Estate development, purchase, sale, brokerage, leasing, management Primary business etc. Shareholders’ equity ¥857 million (as of March 31, 2016) Major shareholders DAIKYO INCORPORATED (as of March 31, 2016) Not-disclosed Net Assets * Because the consent of the company could not be obtained Not-disclosed Total Assets *Because the consent of the company could not be obtained Date of establishment February 12, 1970 Relationships with OJR or its asset management company There is no capital relationship required for reporting between OJR and the Company. Since the Company is a subsidiary of DAIKYO Capital relationship INCORPORATED which ORIX Corporation, the parent company of OAM, invests in, the Company falls within the scope of a related party, etc., as stipulated in the Investment Trust Law.

There is no personal relationship required for reporting between OJR or Personal relationships OAM and the Company

There is no business relationship required for reporting between OJR or Business relationships OAM and the Company

The Company does not fall under “related party” of OJR. As mentioned Applicability to above, the Company falls under “the related parties” of OAM as stipulated in related parties the Investment Trusts Act.

9. Future Outlook With regard to impact on the financial forecast for the 30 th fiscal period (from September 1, 2016 through February 28, 2017) and the 31st fiscal period (from March 1, 2017 through August 31, 2017) due to the property acquisitions, please refer to the press release “ORIX JREIT Announces Revisions of Earnings Forecasts for the 29 th Fiscal Period (Ending August 31, 2016) and the 30 th Fiscal Period (Ending February 28, 2017), and Earnings & Distributions Forecasts for the 31st Fiscal Period (Ending August 31, 2017)” announced today.

Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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10. Appraisal Summary I. Appraisal summary 1) Gaien Nishi-dori Building Name of asset Gaien Nishi-dori Building Date of Value August 1, 2016 Appraisal Value (In thousands of yen) 9,150,000 Appraiser The Tanizawa S ōgō Appraisal Co., Ltd. (In thousands of yen) Item Content Grounds Calculated with the DCF method as a standard and by conducting Capitalization Method 9,150,000 verification based on the direct capitalization method. Valuation by the Direct Capitalization 9,360,000 Method (1) Gross Operating Revenue [(a)-(b)]

(a) Effective gross revenue

(b) Vacancy loss

(2) Operating Expenses

Maintenance Expenses

This information is not disclosed as the disclosure of it may negatively Utility Expenses Not-disclosed affect OJR and harm the interests of unitholders. Repair Expenses

Property Management Fee

Tenant Advertisement Cost

Tax and Public Dues

Casualty Insurance

Other Expenses (3) Net Operating Income [(1)-(2)] 375,293

Grounds: Not-disclosed (4)Profit from Managing Security 1,708 *The grounds are not disclosed as the disclosure of them may Deposit negatively affect OJR and harm the interests of unitholders.

Assessed in reference to the engineering report, levels for similar real (5)Capital Expenditure 11,900 estate (6)Net Revenue [(3)+(4)-(5)] 365,102

Assessed based on the lease format and control of rights in (7)Cap Rate 3.9% consideration of the use, location and building conditions of the subject real estate, real estate market trends and transaction examples

DCF Method 9,060,000

Assessed based on the lease format and control of rights in Discount Rate 4.0% consideration of the use, location and building conditions of the subject real estate, real estate market trends and transaction examples

Assessed based on current capitalization yield at the time of price Terminal Cap Rate 4.1% estimate in consideration of factors such as future uncertainty

Cost Approach 8,750,000 Ratio of Land 89.3% Ratio of building 10.7%

Market participants make decisions with a focus on revenue stability, growth potential, Any special considerations made in the liquidity at the time of resale, and revenue prices incorporating this process are highly reconciliation of estimated value standardized. Accordingly, the appraisal value has been determined based on the Capitalization Method

Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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2)PRIZE TENJIN Name of asset PRIZE TENJIN Date of Value July 1, 2016 Appraisal Value (In thousands of yen) 4,740,000 Appraiser The Tanizawa S ōgō Appraisal Co., Ltd. (In thousands of yen) Item Content Grounds Calculated with the DCF method as a standard and by conducting Capitalization Method 4,740,000 verification based on the direct capitalization method. Valuation by the Direct Capitalization 4,910,000 Method (1) Gross Operating Revenue [(a)-(b)]

(a) Effective gross revenue

(b) Vacancy loss

(2) Operating Expenses

Maintenance Expenses

This information is not disclosed as the disclosure of it may negatively Utility Expenses Not-disclosed affect OJR and harm the interests of unitholders. Repair Expenses

Property Management Fee

Tenant Advertisement Cost

Tax and Public Dues

Casualty Insurance

Other Expenses (3) Net Operating Income [(1)-(2)] 213,390

Grounds: Not-disclosed (4)Profit from Managing Security 3,831 *The grounds are not disclosed as the disclosure of them may Deposit negatively affect OJR and harm the interests of unitholders.

Assessed in reference to the engineering report, levels for similar real (5)Capital Expenditure 1,350 estate (6)Net Revenue [(3)+(4)-(5)] 215,872

Assessed based on the lease format and control of rights in (7)Cap Rate 4.4% consideration of the use, location and building conditions of the subject real estate, real estate market trends and transaction examples

DCF Method 4,670,000

Assessed based on the lease format and control of rights in Discount Rate 4.5% consideration of the use, location and building conditions of the subject real estate, real estate market trends and transaction examples

Assessed based on current capitalization yield at the time of price Terminal Cap Rate 4.6% estimate in consideration of factors such as future uncertainty

Cost Approach 4,720,000 Ratio of Land 83.0% Ratio of building 17.0%

Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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Reference Materials ・・・Portfolio summary after acquisition of the properties to be acquired Notes: 1. This is the English translation of original Japanese documents and is provided solely for information purposes. If there are any discrepancies between the translation and the Japanese original, the latter shall prevail. 2. The original Japanese version of this announcement is being distributed today to the Kabuto Club, the Ministry of Land, Infrastructure, Transport and Tourism Press Club, and the Ministry of Land, Infrastructure, Transport and Tourism Construction Specialty Publication Press Club.

Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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・・・Portfolio summary after acquisition of the properties to be acquired *Properties to be acquired Acquisition (Note 2) Property % of Date Price (million yen) (Note 1) Total Acquisition Price Offices 6 Central December 1, 2001 Aoyama Suncrest Building 10,076 1.7 Tokyo Wards February 2, 2016 Round-Cross Ichi-bancho December 1, 2001 3,526 0.6 Round-Cross Nishi Shinjuku December 1, 2001 2,650 0.4 DT Gaien December 21, 2001 2,430 0.4 Yoyogi Forest Building December 21, 2001 1,406 0.2 Round-Cross Minami Azabu December 21, 2001 1,394 0.2 Round-Cross Akasaka January 10, 2002 2,624 0.4 Round-Cross Mita January 10, 2002 1,748 0.3 Shiba Daimon Building January 10, 2002 2,195 0.4 Round-Cross Tsukiji January 10, 2002 3,378 0.6 ORIX Shiba 2-chome Building September 29, 2003 7,500 1.3 Aoyama 246 Building March 3, 2004 5,200 0.9 Round-Cross Shinjuku April 28, 2006 8,020 1.3 September 30, 2005 Seafort Square Center Building 18,000 3.0 April 28, 2006 June 26 . 2006 ORIX Akasaka 2-chome Building 21,860 3.7 December 4. 2006 Round-Cross Shinjuku 5-chome April 26, 2007 4,500 0.8 Nihonbashi Honcho 1-chome Building March 28. 2007 10,500 1.8 Round-Cross Shibuya March 28. 2008 3,500 0.6 ORIX Suidobashi Building March 28. 2008 3,000 0.5 ORIX Shinagawa Building June 27, 2008 15,200 2.5 ORIX Real Estate Nishi Shinjuku Building March 27. 2009 13,600 2.3 OX Tamachi Building March 29, 2010 6,730 1.1 MG Shirokanedai Building November 1, 2013 8,500 1.4 SHIBUYA PINE Bldg. March 20, 2014 3,400 0.6 MG Ichigaya Building April 4, 2014 3,100 0.5 DUPLEX GINZA TOWER 2/11 September 30, 2015 5,200 0.9 ARK Hills South Tower October 15, 2015 22,000 3.7 KANDA MATSUNAGACHO BUILDING January 26, 2016 4,202 0.7 * Gaien Nishi-dori Building September 30. 2016 (Scheduled) 9,000 1.5 Subtotal 204,440 34.3 Remaining Carrot Tower December 1, 2001 5,479 0.9 Tokyo Wards Toyo MK Building December 1, 2001 5,270 0.9 Beside Kiba December 21, 2001 2,450 0.4 ORIX Ikebukuro Building April 18, 2003 9,577 1.6 KN Jiyugaoka Plaza May 30, 2007 3,110 0.5 ORIX Meguro Building July 29, 2010 6,350 1.1 Akihabara Business Center June 1, 2011 5,060 0.8 Subtotal 37,296 6.3 Other Parts of Neo City Mitaka December 1, 2001 2,200 0.4 the Greater Tokyo Area Round-Cross Kawasaki April 27, 2004 4,130 0.7 Omiya Miyacho Building March 27. 2009 4,400 0.7 Omiya Shimocho 1-chome Building March 29, 2010 3,750 0.6 ORE Omiya Building April 15, 2015 7,030 1.2 Subtotal 21,510 3.6 Other Areas Nagoya Itochu Building September 29, 2003 4,500 0.8 ORIX Koraibashi Building April 27, 2005 5,560 0.9 Lunar Sendai June 28. 2007 8,500 1.4 ORIX Nagoya Nishiki Building September 29, 2010 12,500 2.1 ORE Sapporo Building October 1, 2010 4,250 0.7 ORIX Kobe Sannomiya Building September 29, 2011 3,800 0.6 ORE Nishiki 2-chome Bldg. October 1, 2014 10,900 1.8 DOJIMA PLAZA BLDG. December 22, 2014 9,500 1.6 PRIME SQUARE HIROSE-DORI April 1, 2015 7,280 1.2 Hamamatsu Act Tower April 15 2016 11,800 2.0 ORIX Yodoyabashi Bldg. May 2, 2016 5,012 0.8 SAPPORO BRICK CUBE April 14, 2016 5,200 0.9 Albore Kagoshima July 1, 2016 1,300 0.2 Subtotal 90,102 15.1 Offices Total 353,348 59.3 Logistics Other Parts of Toda Logistics Center March 28. 2008 9,600 1.6 Facilities the Greater Tokyo Area Ichikawa Logistics Center September 29. 2008 8,300 1.4 Iwatsuki Logistics Center October 1, 2014 6,300 1.1 Subtotal 24,200 4.1 Other Areas Sakai Logistics Center North Building March 30, 2010 10,200 1.7 Komaki Logistics Center June 30, 2011 2,700 0.5 Subtotal 12,900 2.2 Logistics Facilities Total 37,100 6.2

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Acquisition (Note 2) Property % of Date Price (million yen) (Note 1) Total Acquisition Price Retail 6 Central Nihon Jisho Minami Aoyama Building October 31, 2003 2,548 0.4 Facilities Tokyo Wards CUBE Daikanyama March 31, 2004 2,435 0.4 aune Yurakucho April 1, 2013 9,900 1.7 Cross Avenue Harajuku November 1, 2013 4,815 0.8 J-ONE SQUARE January 31, 2014 1,510 0.3 JouLe SHIBUYA April 1, 2014 7,550 1.3 SO-CAL LINK OMOTESANDO October 1, 2014 2,300 0.4 Kita Aoyama Building February 1, 2016 900 0.2 Subtotal 31,958 5.4 Remaining aune Ikebukuro (Note3) September 30, 2014 6,410 1.1 Tokyo Wards Subtotal 6,410 1.1 Other Parts of aune Kohoku March 10. 2010 4,000 0.7 the Greater Tokyo Area aune Makuhari March 10. 2010 3,600 0.6 Maruetsu Sagamino March 1. 2011 2,350 0.4 CROSS GARDEN KAWASAKI March 29, 2013 12,950 2.2 Tecc Land Totsuka (Land) April 1, 2013 6,020 1.0 Clio Fujisawaekimae December 20, 2013 3,900 0.7 Subtotal 32,820 5.5 Other Areas Kobe Momoyamadai Shopping Center (Land) March 5. 2010 3,260 0.5 Okayama Kume Retail Facility January 31. 2011 2,750 0.5 Home Center Musashi Sendai Izumi (Land) January 11. 2012 2,350 0.4 aune Sapporo Ekimae June 29. 2012 1,900 0.3 Morioka Minami Shopping Center Sansa July 31. 2012 2,800 0.5 GRAN MART Tegata November 1, 2013 980 0.2 AEON TOWN Sendai-Izumiosawa(Land) November 1, 2013 3,510 0.6 Cross Mall Shimonoseki-Chofu January 10, 2014 2,400 0.4 intervillage OH! MAGARI April 1, 2014 5,100 0.9 intervillage OH! MAGARI (Extension) November 30, 2016 (scheduled) 83 0.0 Valor Suzuka Shopping Center April 1, 2014 3,200 0.5 aune Sendai June 20, 2014 2,000 0.3 Friend Town Fukaebashi (Land) September 30, 2014 2,400 0.4 KONAMI SPORTS CLUB KORIEN October 30, 2015 1,600 0.3 * PRIZE TENJIN October 3. 2016 (Scheduled) 4,550 0.8 Subtotal 38,883 6.5 Retail Facilities Total 110,071 18.5 Residential 6 Central We Will Hatchobori June 1, 2011 2,370 0.4 Properties Tokyo Wards Shibaura Island Air Tower July 28, 2011 6,030 1.0 Belle Face Togoshi Statio May 9. 2012 2,642 0.4 Belle Face Meguro October 19, 2012 3,330 0.6 Central Crib Roppongi April 1, 2015 7,493 1.3 Subtotal 21,865 3.7 Remaining Belle Face Kamata June 1, 2011 3,550 0.6 Tokyo Wards Belle Face Hongo Yumicho June 1, 2011 3,340 0.6 Belle Face Mishuku March 30, 2012 2,000 0.3 West Park Tower IKEBUKURO April 1, 2014 20,500 3.4 Belle Face Higashijujo April 4, 2014 3,000 0.5 Subtotal 32,390 5.4 Other Parts of R-Styles Musashi-Kosugi October 1, 2014 4,433 0.7 the Greater Tokyo Area Subtotal 4,433 0.7 Other Areas Belle Face Osaka Shinmachi June 1, 2011 3,684 0.6 Belle Face Amagasaki June 1, 2011 3,440 0.6 Belle Face Kanazawa Kohrinbo November 1, 2013 2,410 0.4 Subtotal 9,534 1.6 Residential Properties Total 68,222 11.4 Others 6 Central Tokyo Wards TAKANAWA DUPLEX C’s June 21, 2016 2,830 0.5 Subtotal 2,830 0.5 Other Parts of Cross Gate January 10, 2002 15,040 2.5 the Greater Tokyo Area GOOD TIME LIVING Shin-urayasu September 6, 2012 1,550 0.3 Subtotal 16,590 2.8 Other Areas VIA INN SHINSAIBASHI BLDG. September 30, 2015 3,100 0.5 HOTEL KEIHAN SAPPORO September 30, 2015 2,550 0.4 Richmond Hotel Yamagata Ekimae September 30, 2015 2,300 0.4 Subtotal 7,950 1.3 Others Total 27,370 4.6 Grand Total 108 properties 596,111 100.0 Notes: 1. “Acquisition price” above refers to acquisition price (fractions rounded down) specified in the purchase and sale agreement. Consumption taxes are not included in the price. 2. Fractions are rounded to two decimal places for the “Percentage of total acquisition price”. Totals for the “Percentage of total acquisition price” may not tally as a result of this rounding. 3. “aune Ikebukuro” was renamed from “ORE Ikebukuro” on August 1, 2016.

Disclaimer: This document is not an offer to sell or a solicitation of any offer to buy the securities of OJR (the “Investment Corporation”) in the United States or elsewhere.

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