投資法人みらい 3Rd Fiscal Results & Progress of Mid-Term Management Plan

章区切り

投資法人みらい 3rd Fiscal Results & Progress of Mid-term Management Plan

MIRAI Corporation Security Code:3476 Mitsui Bussan & IDERA Partners Co., Ltd. December 2017 http://3476.jp/en Memo 1 Executive Summary 2

1. Steady growth in distributions per unit (DPU) 3rd FP 4th FP 5th FP Annual DPU (Oct. 2017) (Apr. 2018) (Oct. 2018) Forecast (Note1)

As of June 2017 Forecast Forecast nd N/A 10,200 yen (2 FP) 5,100 yen 5,100 yen

(Note2) (Note2) As of December 11 Actual Forecast Forecast (3rd FP) 5,175 yen 5,600 yen 5,600 yen 11,200 yen

+75 yen +500 yen Maintain DPU level Stabilized DPU +10%

2. Improvement in quality of our portfolio 3. Improvement in strength of our financial base

Maintained stable occupancy Refinanced short-term loans and set up commitment line of 2 (occupancy rate at end of the period 99.4% billion yen Mitigated portfolio concentration risk through replacement of Increased long-term and fixed interest debt ratio assets (Long-term and fixed interest debt ratio 100 (Note3) ) Enhanced profitability through acquisition of Growth Asset Growth of NAV/Unit (Note 4) End of the 3rd FP: ¥193,114/ up ¥8,013 from the previous FP)

Note1: Sum of DPU forecasts for 2 FPs. Note2: This forecast is based on certain assumptions as of December 11, 2017 and subject to change due to conditions such as change in rent income thorough tenant turnovers, acquisition and disposition of assets, and additional unit issuance. The forecast should not be construed as guarantee of DPU. Note3: After repayment of short-term loan of 10 billion with proceeds from transfer of 36.6% quasi co-ownership interest of Shinagawa Seaside Parktower. Note4: NAV (Net Asset Value) = Net assets + Unrealized gain. Hereafter, the definition is the same in this material. 目次

Table of Contents 3

Section1. 3rd Fiscal Period Highlights P 4 1. Risk Diversification Through Replacements of Assets P 5 2. Acquisition of Growth Asset Aimed at Improvement in Profitability P 9 3. ESG and Initiatives to Enhance the Value of Properties P 12 4. External Growth Strategy/ Status of Pipelines P 13 5. Tenant Diversification/ Leasing Activities P 15 6. Financial Activities/ IR Activities and Schedule P 17 7. Progress of Mid-Term Management Plan P 20

Section2. 3rd Fiscal Period Financial Summary & Forecasts P 23 1. Financial Summary & Forecasts P 24 2. Leasing & Occupancy Track Record P 27

Appendix1. Basic Information P 31 Appendix2. Information of Real Estate Market P 41 Appendix3. Financials in Detail P 45 Appendix4. Portfolio in Detail P 53 章区切り

Section1. 3rd Fiscal Period Highlights 本文ページ

Risk Diversification Through Replacements of Assets 5

Achieved portfolio and tenant diversification through disposition of interest in the largest property and acquisition of other properties (office buildings).

Disposition Acquisition

Shinagawa Seaside Parktower Tokyo Front Terrace Property name Nippo Hommachi Building (36.6% quasi-co-ownership (Note 1)） (50.2% quasi-co-ownership(Note 2)) Total /Average Location Shinagawa, Tokyo Shinagawa, Tokyo Osaka, Osaka (2 properties)

Disposition End of February 2018 The date separately agreed October 26, 2017 /acquisition date or the date separately agreed on on by the end of February 2018 Price for disposition 12,004 million yen 10,592 million yen 1,465 million yen 12,057 million yen /acquisition price

Appraisal value 11,895 million yen 10,793 million yen 1,530 million yen 12,323 million yen

Appraisal NOI yield 4.3% 4.1% 5.4% 4.2%

NOI yield after 3.5% 3.7% 4.8% 3.8% depreciation

Note1:MIRAI has entered into a disposition agreement with GK SS2 (Limited Liability Company), which has a discretionary investment agreement with Mitsui & Co., Realty Management Ltd. (hereinafter “MBRM”) for 36.6% of the quasi-co-ownership interest related to Shinagawa Seaside Parktower. After the establishment of private REIT under consideration by MBRM, the position of the buyer will be transferred to the private REIT. Note2: MIRAI acquired 50.2% of the quasi-co-ownership interest, and JA Mitsui Leasing Tatemono Co., Ltd. (hereinafter “JA Mitsui Leasing Tatemono”) acquired residual interest (49.8%). After the establishment of private REIT, JA Mitsui Leasing Tatemono plans to dispose the 49.8% quasi-co-ownership interest to the private REIT. 本文ページ

Risk Diversification Through Replacements of Assets 6

Optimized investment allocation though collaboration with both our sponsors.

Financial support through co-ownership of asset

Mitsui&Co. Asset Management MIRAI Corporation Shinagawa Seaside Park Tower Holdings LTD. (MAH) (Note) (36.6% quasi-co-ownership 12.0 billion yen (disposition)

Strategic Co-ownership

63.4% MIRAI 50.2%

36.6% MAH 49.8%

Nippo Hommachi Building Tokyo Front Terrace Tokyo Front Terrace ¥1.4 billion (acquisition) (50.2% quasi-co-ownership) (49.8% quasi-co-ownership) ¥10.5 billion (acquisition) ¥10.5 billion (acquisition) Sourcing & Leasing Support

IDERA Capital Management Ltd.

Note: Includes private funds and private REITs under the control of MAH as well as Mitsui & Co. Group companies. 本文ページ

Risk Diversification Through Replacements of Assets 7

Achieved portfolio diversification through replacement and co-ownership of assets under current market environment.

(Reference) No replacement of portfolio (Note1) Acquisition of the entire Tokyo Front Terrace Before Replacement After Replacement + continuous ownership of (as of the end of September, 2017) (as of the end of February, 2018) the entire Shinagawa Seaside Parktower

Portfolio Top 3 assets Top 3 assets Top 3 assets Diversification 65 % 51 % 60 %

Top 10 tenants 57 % 53 % 51 % Total number of tenants 97 tenants 160 tenants 160 tenants Number of properties 15 properties 18 properties 18 properties AUM (Total acquisition price) 100.7 billion yen 105.5 billion yen 127.8 billion yen Total amount of debts 49.0 billion yen 54.0 billion yen 76.0 billion yen LTV (Note2) 45 % 48 % 56 %

Note1: Assume the acquisition of Tokyo Front Terrace (100%) at 21.1 billion yen in addition to Nippo Hommachi Building, Nara Heijo Plaza and MIUMIU Kobe (building) with loan of 27.0 billion yen, while the entire Shinagawa Seaside Parktower is continuously owned. Note2: LTV=Outstanding interest-bearing debt / Total assets. 本文ページ

Tenant Breakdown of Tokyo Front Terrace 8

IDERA Capital Management Ltd. began leasing activities in the second half of 2015 and have realized occupancy rate of 96.5% and average rent of 17,100 yen.

Stacking Plan Tenant Diversification Lease commencement date (based on rent) (based on rent) Q R S T Telecom P U O V The second The first N A half of 2017 half of 2016 20F Telecom Telcom M Manufacturing L K Telcom J I Telcom B 15F H Telcom G The first half Manufacturing Telcom Financial of 2017 C The second Transportation Wholesale F half of 2016 E Wholesale Service D Rent 10F Service Market rent (rent/ per tsubo / per month) Food and Beverage Average under 16,000 Area Wholesale Telcom Manufacturing Manufacturing Over 17,500 rent

16,000-16,500 Chiyoda 40,499 yen

Service Shibuya 25,182 yen 5F (Note) Average rent Minato 28,851 yen Service 17,100 yen Shinjuku 29,599 yen Directly connected to the monorail station Tokyo Front Terrace 1F Entrance Chuo 24,554 yen

in negotiations 17,000-17,500 Shinagawa 20,286 yen 16,500-17,000 Source : Building Group Co., Ltd. June, 2017

Note: Rounded to the nearest 100 yen. 本文ページ

Acquisition of Growth Asset to Enhance Profitability 9

Started investing in Growth Asset to pursue upside while controlling risk.

Nara Heijo Plaza Advantages of Revitalization-type Retail Property

Deep  Competitive rent due to low acquisition price discount  Relatively high yield and upside can be expected

 High degree of flexibility in layout due to full renovation Flexibility  Flexibility in tenant mix without the constraints of business affiliation

 Inheriting existing customer base Publicity  Enjoying a high publicity from the time it opens

Scenario Analysis (Note1) Based on Base case Scenario minimum (forecast for the Upside guaranteed rent 5th FP) Rent revenue 840 million yen 970 million yen 1.08 billion yen NOI 300 million yen 440 million yen 540 million yen

NOI yield 6.0% 8.7% 10.8%

5,750yen 5,600yen 5,350yen 650yen DPU 500yen Impact 250yen

Core-DPU (Note2) 5,100yen

Note1: This information based on certain assumptions as of December 11, 2017 and is intended for reference purposes only. It may not be the same as business forecasts to be announced in the future and is not a guarantee of future performance of DPU. Note2: Assuming portfolio consisting of core assets only, excluding Nara Heijo Plaza based on assumptions as of December 11, 2017, and is intended for reference purposes only. 本文ページ

Tenant Layout of Nara Heijo Plaza 10

“Tourism-oriented retail property” combining daily needs and leisure.

1F Groceries/Drugs/Food Court 2F Fashion/Household & Accessories 3F Kids & Family Lifestyle Amusement

Fashion

Service

Restaurants

In negotiations

4F Samurai, Ninja & Kingyo(goldfish) Museum 5F Amusement / Art Gallery RF Amusement / Beer Hall

Note: Prepared by the Asset Management Company based on conclusion of lease contracts (pre-commitments) and the receipt of store opening applications as of December 11, 2017 and subject to change. 本文ページ

Tenant Breakdown of Nara Heijo Plaza 11

2/3 of tenants cater for daily needs while 1/3 are amusement and tourism-oriented tenants. Majority of contracts are long-term contracts of 10 years or more and fixed rent.

In A negotiations

Amusement

Tenant B Service Tenant category Diversification Restaurant C D J Fashion E I Lifestyle H G F

In In negotiations More than negotiations 20 years

5 years of Lease term Rent type Fixed rent less

Sales-linked rent

5-10 years Fixed rent + 10-20 years Sales-linked rent Note: Figures show diversification on a leased area basis and were prepared by the Asset Management Company based on conclusion of lease contracts (pre-commitments) and the receipt of store opening applications as of December 11, 2017 and are subject to change. 白紙ページ

ESG and Initiatives to Enhance the Value of Properties As part of ESG, we promoted investment in revitalization projects, green building actions, conversions and LED lighting installation.

Environmental Measures and Energy Conservation Kawasaki Tech Center Conversion Measures for Green Buildings  Obtained certification and utilized subsidy programs for energy  Converted data center to office use efficiency  Improved occupancy (93.3%→100.0%) with wider prospective tenant base Subsidy granted for promotion of energy efficiency investment Before After (Shibuya World East Building)

✓ Program supports introduction of facilities and equipment recognized as energy and cost efficient

✓ Decision was made to subsidize air- conditioning installation work at Shibuya World East Building

Shinagawa Seaside Parktower LED lighting installation work in common area Acquisition of LEED certification  Promoting LED lighting installation at portfolio properties to not only (MIUMIU Kobe) reduce costs but also to make properties more eco-friendly

✓ LEED certification: rating system devised by After After the United States Green Building Council (USGBC) to evaluate the environmental performance of buildings and sites in terms of energy efficiency and ecofriendly design

✓ Acquired a building with LEED Silver certification

Entrance Elevator hall 本文ページ

External Growth Strategy / Investment Allocation 13

Replaced some office properties and invested in Growth Asset, while ensuring to maintain quality of the portfolio.

External Growth Strategy Progress in 3rd Fiscal Period and Future Actions (as of June 2017)

Office Buildings  Yield compression continued in central Tokyo. We will  Lowered exposure to Bay Area through disposition focus on mid-sized offices, located outside central of interest in Shinagawa and acquisition of interest Tokyo. in Tennozu (Tokyo Front Terrace).  For large-scale properties, we will control the risk while  Acquired mid-sized office building in Osaka where covering funding constraints by including the co- rent upside can be expected due to gap between ownership of the properties with private REIT among the demand and supply. options.  Plan to continue focusing on mid-sized office.  For existing properties with a high weighting on portfolio, we will consider sale of co-ownership interest to group  Additional asset replacements will be considered

REIT and capital recycling. to maintain quality. Retail Properties  In the three major metropolitan areas, we will selectively invest in land assets whose depreciation burden is  Acquired Nara Heijo Plaza based on careful smaller. For regional areas, we will carefully select consideration of end tenant occupancy. winning properties with a competitive edge locally, while  Acquired at lower price; relatively high yield and assuming long-term contracts. upside can be expected.  We will also consider investing in revitalization projects,  Focusing on Nara Heijo Plaza opening for the time which are expected to be highly profitable by carefully being and will examine additional revitalization studying the certainty of future cash flow. (Core-plus projects as the portfolio grows. assets)

 We will continue to invest in budget hotels, demand for which is expected to remain steady.  Conducting due diligence and negotiations for bulk

Hotel acquisition for which we have preferential  For the three major metropolitan areas, we will carefully negotiation rights. judge the competitive landscape and operators’ capabilities as new development projects increase.  Focusing on acquisition of budget hotels for which s firm demand is expected while deferring  For regional areas, we will selectively invest based on investment to full-service/resort-type hotels which competitive edge and operator’s credit, while assuming are prone to volatility. long-term contracts. * Above photos are just for information and different from the actual ones. Pipelines / Deal Sourcing Conditions 14

Pipelines with Preferential Negotiation Right (Note) Deal Sourcing Conditions

Shinjuku Eastside Square MI Terrace Property Name (5% Equity) Nagoya Fushimi Building Tokyo Area Others

Number of Projects : 181 Number of Projects : 63

Photos Office Value per Property : 0.5-27 Value per Property : 0.7-10 (billion yen) (billion yen) Yield : 3% to 4% Yield : 4% to low 5%

Asset Type Office Office

Location Shinjuku-ku, Tokyo Nagoya-city, Aicih Number of Projects : 42 Number of Projects : 68 Completion March 2012 February 1993 Retail Value per Property : 0.8-50 Value per Property : 0.5-25.5 (billion yen) (billion yen) 167,031.19 Gross Floor Area 15,673.01 (entire building) Yield : 3% to mid 4% Yield : from 4% to 6%

Property Name Rokko Island DC Hotels Bulk Project

Number of Projects : 50 Number of Projects : 141

Hotel Value per Property : 0.5-13 Value per Property : 0.5-34.7 (billion yen) (billion yen) Photos Yield : mid 3% to low 4% Yield : 4% to mid 5%

※Above photos are just for information and different from the actual ones

Industrial Budget Hotel Asset Type Number of Projects : 343 Number of Projects : 252 (New-type Asset) (4 properties) Value per Property : 0.5-25 Value per Property : 0.5-21 Higashinada-ku, Kobe-city, Others Location - (billion yen) (billion yen) Hyogo Yield : 3% to 5% Yield : mid 4% to 8% Completion May 2016 -

Gross Floor Area 14,381.16 -

Note: MIRAI does not guarantee the acquisition of these properties. 本文ページ

Tenant Diversification (as of October 31, 2017) 15

Large-scale offices are mostly under 2-year regular lease contracts. Operations are stable mainly due to expansion of leased space by core tenants.

Diversification of Lease Maturity (based on rent) Breakdown of lease contracts type (based on rent)

25% Average remaining term 3.9 years Regular lease Fixed-term lease 20% Office 1.8 years 69.5% 30.5% 15% Retail 6.9 years Hotel 8.6 years 10% Office 13.1% 7.2% 5% 49.3% 10.1%

0% 4 6 8 10 12 14 16 18 20 22 24thFP~ Retail Hotel 6.0% 14.2% Office Retail Hotel Top 10 tenants (based on rent)

Company name Property Ratio Diversification based on 1. GK Nara Heijo Plaza (Note1) Nara Heijo Plaza 12.2 expected end-tenant contracts of 2. NTT Comware Shinagawa Sea Side Parktower 9.7% Nara Heijo Plaza (Note 2 3. AEON Retail AEON Kasai / Shinagawa Sea Side Parktower 6.7% Top 10

4. Biglobe Shinagawa Sea Side Parktower 5.3% 55.0%

5. PRADA Japan MIUMIU Kobe 4.7% 6. Super Hotel 4 Super Hotels (Sendai, Osaka, Saitama and Kyoto) 4.3% Top 10 7. Mercedes Benz Shinagawa Sea Side Parktower 3.7% 44.1% 8. Undisclosed Kawasaki Techcenter 3.6%

9. DCM Daiki Daiki Izumi-chuo 2.6%

10. Undisclosed Shinjuku Eastside Square/ Hillcourt Higashi Shinjuku 2.1%

Total 55.0%

Note1: It is the master lessee (pass-through type) of Nara Heijo Plaza and enters into lease contracts with a large number of end tenants. The ratio above is based on the minimum guaranteed rent agreed between GK Nara Heijo Plaza, MIRAI and Yamaki Co., Ltd. Note2: Figures are based on contracts with end tenants expected by the Asset Management Company based on the conclusion of lease contracts (pre-commitments) and the receipt of store opening applications as of December 13, 2017 and are subject to change. 本文ページ

Leasing Activities 16

Steadily lowered vacancies at large-scale office and secured tenant for Hotel Sunroute Niigata (the underground retail space).

Kawasaki Tech Center Hotel Sunroute Niigata

 Situation/ issues at the end of the previous fiscal period  Situation/issues at the end of the previous fiscal period  Data center tenant vacated the property after IPO  Extended contract with existing tenant from June 2017 (10 years). (occupancy 93.3%)  At renewal, the underground retail space was returned  Leasing activities (occupancy 94.6%).  Carried out asset enhancement work that lead to improvement in  Leasing activities tenant satisfaction.  Carried out reinstatement work to bare shell state to attract a wider  Converted data center to office to attract a wider range of prospective range of prospective tenants. tenants.  Held discussions with the hotel operator and approached business  Enabled viewing of space through VR, minimizing opportunity loss. that could create synergy with the hotel.  Results  Results  Steadily lowered vacancies by tapping into expansion demands  Entered into long term lease contract with national izakaya restaurant among existing tenants as well as new tenants seeking a large space chain. (Expiry June 2027). for relatively low rent. Installing LED lightnings in entrance Reinstatement work in the underground level

Utilization of VR

93.3% 100.0% 94.6% 100.0% (As of April 30, 2017) (November 2017 ~) (As of June 30, 2017) (January 2018 ~) 本文ページ

Financial Activities 17

Continued to obtain favorable loan terms with support from main banks. Further strengthened financial base through the establishment of a commitment line, participation of new lender and increase of long-term fixed interest debt ratio.  Oct. 2017: New ¥20.0 billion loan for acquisitions and refinancing (1) Property acquisition 10.0 billion yen Sep. 2017: 64.0 billion yen to be repaid with funds from disposition of Shinagawa) Repaid short-term loan of Interest rate 2.0 billion yen with refund Category Lenders Amount (Note) Term of consumption tax, etc. Short-term Sumitomo Mitsui Banking Corporation 10.0 billion yen 0.17% 0.5 years loan

(2) Property acquisition 5.0 billion yen Interest rate 51.0 billion yen Category Lenders Amount (Note) Term Sumitomo Mitsui Trust Bank, Limited / Shinsei 3.0 billion yen 0.54% 7.8 years Bank, Limited Long-term loan NEW The Nanto Bank, Ltd. 1.0 billion yen 0.54% 7.8 years

Resona Bank, Limited. 1.0 billion yen 0.71% 9.8 years

(3) Refinance 5.0 billion yen Interest rate Category Lenders Amount (Note) Term

Long-term Sumitomo Mitsui Banking Corporation / 5. 0 billion yen 0.73% 10 years loan THE BANK OF FUKUOKA, LTD.

Total long-term loans 10.0 billion yen 0.65% 9.1 years

 Sep. 2017: Established commitment line of 2.0 billion yen for greater funding flexibility

Lender Borrowing limit Contract period Term

End of 2nd FP End of 3rd FP Mizuho Bank, Ltd. 2.0 billion yen 1 year Up to 6 months

Note: Interest rates are as of the end of October 2017. Long-term loans are on a variable rate basis and the interest rate shown is the actual interest rate that has been fixed through interest rate swap. Financial Highlights 18

Lenders (after repayment of short-term loans) Financial Highlights

Mizuho TB 3.7% Nanto 1.9% 52% DBJ 3.7% (Note) Shinsei LTV 47% 48% 5.6% SMBC Fukuoka 33.3% 5.6%

Risona 0.54% Average 5.6% 0.48% interest rate 0.46%

Mizuho BK 6.7years 18.5% SMTB Average 22.2% remaining 5.8years 5.7years Debt Maturity Ladder maturity

Upon repayment with the proceeds from the disposition (million yen) of Shinagawa, long-term fixed interest debts ratio will be 100% Long-term fixed 100% (expected February 2018) 12,000 interest debt 86% ratio 84%

8,000 After End of 2nd FP End of 3rd FP repayment

4,000 Japan Credit Rating Agency, Ltd.

0 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Rating A+(stable) *Annual review result to be announced in January 2018.

Note: Based on total assets as of April 2018 (estimate). 本文ページ

IR Activities and Schedule 19

3rd FP (results) Future Schedule

For Institutional  IR in Japan (60 investors)  IR in Japan Investors  IR Overseas (Singapore, Taiwan, EU, USA, Korea)  IR Overseas (Singapore, Hong Kong, Taiwan, EU, USA)  Citi Asia Property Conference (Hong Kong)  Citi Global Property CEO Conference (Florida)  Mizuho Global REIT/ Real Estate Conference NY  Nomura Global Real Estate Forum  IR Presentation for Equity Sales (Jul. ~ Sep.2017)  Property Tour (Nara)  Property Tour (Shinagawa, Kawasaki, Kasai, TFT) For Individual  Daiwa J-REIT Festival (Jul. 2017)  SMBC Nikko J-REIT Fair (Jan. 2018) Investors  The General Meeting of Unitholders (Jul. 2017)  J-REIT Fan 2018 (Feb. 2018)  IR Presentation for Individual Investors (Osaka) (Jul. 2017)  IR Presentation for Individual Investors  Nikkei IR Fair 2017 (Aug. 2017) (Yokohama, Tokyo, Osaka, Nara, Nagoya, Fukuoka)  J-REIT Fair 2017 (Oct. 2017)

YouTube IR Event for individual Investors

IR Presentation for Individual 3rd FP Results Tokyo Front Terrace Daiwa J-REIT Festival Investors (Osaka)

2nd FP Results Nara Heijo Plaza Nikkei IR Fair 2017 J-REIT Fair 2017 本文ページ

Historical Investment Unit Prices 20

Aim to build stable track record, with recovery of price to NAV ratio as immediate goal.

June 14, 2017 (yen) TSE REIT Index: 1,728.32 pt 195,000 NAV/U : 193,1141,000,000 yen October 27, 2017 April 26, 2017 Ex Dividend Date for the 3rd FP TSE REIT Index: 1,744.39 pt MIRAI: 169,000 yen November 30, 2017 MIRAI: 178,300 yen 180,000 800,000

165,000 600,000 December 15, 2016 October 27, 2017 November 30, 2017 IPO Issue Price: 183,000 yen June 14, 2017 TSE REIT Index: 1,633.65 pt TSE REIT Index: 1,671.62 pt TSE REIT Index: 1,787.51 pt Announcement of the results nd for the 2 FP & “Repower 2020” (unit) 150,000 MIRAI: 166,000 yen 400,000 April 26, 2017 Ex Dividend Date for the 2nd FP MIRAI: 150,100 yen 135,000 200,000

120,000 0 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 Sep-17 Oct-17 Nov-17

MIRAI (left axis) TSE REIT Index (left axis) NAV/U (left axis) Volume (right axis)

Note: As of November 30, 2017. Relative performance of TSE REIT Index, is calculated based on the IPO issue price of MIRAI. 本文ページ

Mid-term Management Plan “Repower 2020” (announced on June 14, 2017) 21

Sustainable growth of DPU and Recovery/Improvement of Unitholders’ Value

3rd FP 8th FP Mid-term Management Plan (For 3 years) (Oct. 2017) (Apr. 2020)

External Growth Portfolio Reshuffle Maintain the Occupancy and Mid-tern Management Plan Rent Level of the portfolio yen +600 Target (Note 1)

DPU Continue Stable Distributions and DPU growth 5,700 yen~ (Stabilized) 5,100 yen for 3 years

Profitability Portfolio Diversification Financial Base

NOI Yield after Depreciation Top 3 Assets LTV

4.0%~ Up to 40% Up to 50% (target) (target) (target)

Note: The target is calculated based on certain assumptions as of June 14, 2017. It should not be construed as guarantee of future DPU. For the assumptions, refer to the " (REIT) Financial Report for the Fiscal Period ended April 30, 2017 " announced on June 14, 2017. 本文ページ

Progress of Mid-Term Management Plan 22

To reach toward DPU target while maintaining LTV below 50% and significantly improving portfolio diversification.

2nd FP 3rd FP 4th FP 5th FP 6th FP 7th FP 8th FP Target Quantitative Items Target result result forecast forecast forecast forecast forecast

6,000

5,000 Stabilized DPU yen 5,700 4,000

3,000

4.1% Profitability 3.9% % ~ (Note1) (NOI Yield after Depreciation) 4.0 3.7%

3.5%

70% Portfolio 60% Diversification up to 40% 50% (Top 3 Assets) 40% 30%

54% 52% Financial Base 50% (LTV) up to 50% 48% 46%

Note1: Figures are adjusted for days of contribution of properties acquired during 3rd FP. NOI yield after depreciation is 3.4% without such adjustment. Target achievement Note2: This forecast is calculated based on certain assumptions as of December 11, 2017 and subject to change due to conditions such as change in rent income thorough tenants turnovers acquisition and disposition of assets, and additional unit issuance. The forecast should not be construed as guarantee of DPU. 章区切り

Section2. 3rd FP Financial Summary & Forecasts 本文ページ

Financial Summary 24

Stabilized DPU forecast increased by 10% through measures such as asset replacement and acquisition of Growth Asset.

Gain on sale of asset, etc. 5,600 yen Gain on sale as a result of partial 5,600 yen disposition of Shinagawa Core-plus Asset 5,175 yen 370 (temporary rise in DPU) 5,100 yen 5,100 yen 490 Sustainable growth of DPU as a 75 result of renewal and opening of 780 Nara Heijo Plaza Newly acquired assets Full-period contribution of Tokyo Front Terrace No contribution from Nara Heijo Plaza during renewal period

5,100 5,100 5,100 5,110 Core assets (before changes) Core assets Core assets 4,450 (before asset replacement) (after asset replacement) Maintained stable occupancy as expected at time of IPO. Reduction in rent revenue due to Maintain portfolio profitability after partial disposition of Shinagawa asset replacement . Posted better-than-forecast results mainly due to reduction of repair Improve risk diversification and and maintenance costs stability of DPU

Forecast as Actual Forecast as Revised Forecast of biggining of biggining forecast (Note) of 3rd FP of 4th FP (Note)

3rd FP 4th FP 5th FP (Oct. 2017) (Apr. 2018) (Oct. 2018)

Note: This forecast is calculated based on certain assumptions as of December 11, 2017 and subject to change due to conditions such as change in rent income thorough tenant turnovers , acquisition and disposition of assets, and additional unit issuance. The forecast should not be construed as guarantee of DPU. Financial Results (3rd Fiscal Period, ended October 2017) 25

Changes Forecasts (A) Results (B) Major Topics (as of June 14, 2017) (B) – (A) Operating revenue (million yen) 3,397 3,375 (21)  Normalized fiscal period starting from the period under Lease business revenue (million yen) 2,681 2,677 (3) review (fiscal period: 6 months Office (million yen) 1,808 1,801 (7)  The impact of the properties acquired in October 2017 was Retail (million yen) 552 556 3 insignificant. Hotel (million yen) 319 319  DPU was 1.5% (75 yen) higher than forecast. Other lease business revenue (million yen) 715 697 (17)  Temporary increase in LTV Operating expenses (million yen) 1,035 980 (55)

NOI (million yen) 2,361 2,395 33 Breakdown of Changes Depreciation (million yen) 356 362 5 General Administrative expenses (million yen) 363 370 7 NOI (Net Operating Income) Non-operating expenses (million yen) 142 146 3 Shinagawa Seaside Parktower 15 million yen Net Profit (million yen) 1,498 1,520 21 Kawasaki Tech Center (37 million yen) DPU (yen) 5,100 5,175 75

Capital expenditure (million yen) 256 157 (99) Newly acquired properties 2 million yen

NCF (million yen) 2,104 2,237 133 Tokyo Front Terrace/Nara Heijo Plaza FFO per unit (yen) 6,312 6,408 96 Others 53 million yen Payout ratio % 80.8 80.8 (Reduction repair and maintenance costs, etc. Number of Properties 15 17 2

Occupancy rate as of the end of fiscal period % 99.1 99.4 0.3 Depreciation Appraisal value (million yen) 120,442 ― Newly acquired properties 7 million yen Unrealized gain margin % 2.9 ― Outstanding interest-bearing debts (million yen) 49,500 64,000 14,500 Non-operating expenses LTV % 46.0 52.0 6.0 Interest expenses, financing expenses (new loan) Total number of outstanding investment units (unit) 293,750 293,750 4 million yen BPS (yen) 181,424

NAV per unit (yen) 193,114 Financial Forecasts (4th / 5th FP) 26

3rd FP 4th FP 5th FP Changes Changes Major Topics Results Forecasts (Note) Forecasts (Note) (B) – (A) (C) – (B) (A) (B) (C)  New acquisitions Tokyo Front Terrace, Nara Heijo Plaza, Nippo Hommachi Bldg Operating revenue (million yen) 3,375 3,759 384 3,760 1  4th FP: Gain on disposition of real esate property (Shinagawa) Lease business revenue (million yen) 2,677 2,933 260 3,089 124  5th FP: Increased revenue due to opening of Nara Heijo Plaza

Office (million yen) 1,801 1,932 131 1,751 (181) Breakdown of change Retail (million yen) 556 682 126 1,018 336 th Hotel (million yen) 319 317 (1) 319 1 4 FP (Apr. 2018) NOI Other lease business revenue (million yen) 697 702 5 670 (32) Newly acquired properties (3 properties) 306 million yen Decrease due to partial transfer of Shinagawa (98 million yen) Gain on disposition of real Others (Increase in utilities, repair and maintenance costs) (million yen) 123 123 estate properties (67 million yen)

Operating expenses (million yen) 980 1,100 120 1,161 61 Depreciation Newly acquired properties (3 properties) 43 million yen NOI (million yen) 2,395 2,536 140 2,599 63 Decrease due to partial transfer of Shinagawa (14 million yen)

Depreciation (million yen) 362 400 38 400 (0) Administrative expenses Asset management fee (Increase in AUM/DPU) (32 million yen) Administrative expenses (million yen) 370 415 44 372 (42) Non-operating expenses Non-operating expenses (million yen) 146 197 51 180 (17) Interest expenses, etc. (increase in loan) (50 million yen)

Profit (loss) (million yen) 1,520 1,645 125 1,644 (0)

DPU (yen) 5,175 5,600 425 5,600

Capital expenditure (million yen) 157 1,411 1,254 364 (1,046) 5th FP (Oct. 2018) NCF (million yen) 2,237 1,124 (1,113) 2,234 1,110 NOI Increased revenue due to opening of Nara Heijo Plaza 170 million yen FFO per unit (yen) 6,408 6,963 555 6,962 (1) Decrease due to partial transfer of Shinagawa (on full-year basis) (153 million yen) Payout ratio % 80.8 80.4 (0.3) 80.4 Others (Decrease in repair and maintenance costs, etc.) 46 million yen Number of Properties 17 18 1 18 Administrative expenses Occupancy rate % 99.4 99.3 (0.1) 99.4 Asset management fee (Transfer of Shinagawa/Decrease in AUM ) (20 million yen) Outstanding interest-bearing debts (million yen) 64,000 54,000 (10,000) 54,000 Non-operating expenses LTV % 52.0 48.0 (4.1) 47.9 (0.1) Interest expenses, etc. (Repayment of short-term loans) (16 million yen) Total number of outstanding investment units (unit) 293,750 293,750 293,750

Leasing & Occupancy Track Record 27

Leasing of existing properties are mostly complete and we will focus on leasing of new properties where vacancies assumptions are conservative.

Actual (2nd & 3rd FP) Forecast Assumption (4th & 5th FP)

Sep.-Jan. Feb.-Apr. May-Jul. Aug.-Oct. Sep.-Jan. Feb.-Apr. May-Jul. Aug.-Oct. Monthly Leasing Status Leasing Monthly Moving in

Based on on Basedrent(Note) Renewal Contract Renewed 0.5% (69% of contract maturity Moving out 0.8% during 4th and 5th FP)

1.4% 0.8% 8.2% 7.0% 6.6% 0.1% 4.0% 4.0% 3.7% 2.3% 0.8%

-0.1% -0.9% -0.8% -0.5% -1.3% -0.2%

99.8% 99.8% Based on leasable area on leasableBased 99.4% 99.4% 99.4%

Occupancy 99.2% 98.9% 98.9% 99.2% 99.1% 99.1% 99.1% Forecast as of biggining of 3rd FP

Actual

Forecast for 4th & 5th FP

Note: The ratio to the whole portfolio monthly rent as of October 2017. Hereinafter, the definition is the same in this material. 本文ページ

Leasing & Occupancy Track Record (Large Scale Office Buildings/By Property) 28

Unlikely to be affected by large supply and occupancy is expected to remain stable given rent level and location.

Actual (2nd & 3rd FP) Forecast Assumption (4th & 5th FP) Actual (2nd & 3rd FP) Forecast Assumption (4th & 5th FP)

Sep.-Jan. Feb.-Apr. May-Jul. Aug.-Oct. Sep.-Jan. Feb.-Apr. May-Jul. Aug.-Oct. Sep.-Jan. Feb.-Apr. May-Jul. Aug.-Oct. Sep.-Jan. Feb.-Apr. May-Jul. Aug.-Oct. Shinagawa Seaside Parktower Shinjuku Eastside Square Occupancy Occupancy 100.0% 100.0% Moving in 100.0% 100.0% 100.0% 98.4% Renewal Moving out

5.6% 6.0%

0.1% 0.8% 0.3% 1.7% 0.1% 1.2% 1.0% 0.1% 0.4% 0.8% 0.5% 0.5% -0.4% -0.1% -0.8% 0.1% -0.1% 0.1%

Sep.-Jan. Feb.-Apr. May-Jul. Aug.-Oct. Sep.-Jan. Feb.-Apr. May-Jul. Aug.-Oct. Sep.-Jan. Feb.-Apr. May-Jul. Aug.-Oct. Sep.-Jan. Feb.-Apr. May-Jul. Aug.-Oct. Kawasaki Tech Center Tokyo Front Terrace Occupancy Occupancy 97.5% 100.0% 96.5% 97.4% 96.5% 96.5%

5.0% No change from the current status 0.4% Prior to acquisition; 1.0% vacancies are conservatively no data available estimated) 1.7% 1.4% 1.6% 1.0% 1.3% 0.3%

-0.8% -0.5% -0.1%

Note: The monthly tenant movements are expressed as percentage of the monthly portfolio rent as of the end of October 2017, while the occupancy rate at the end of the fiscal period is expressed as percentage of the leasable area of each property. 本文ページ

Rent Renewal Summary (Office Buildings) 29

Upward revisions are steadily increasing, reflecting stable occupancy in the market.

Actual (2nd & 3rd FP) Forecast Assumption (4th & 5th FP)

Sep.-Jan. Feb.-Apr. May-Jul. Aug.-Oct. Sep.-Jan. Feb.-Apr. May-Jul. Aug.-Oct.

Increase 1.1% Rent Revision Rent

Based On Based Unchanged Contract Renewed Decrease (64% of contract maturity th th during 4 and 5 FP) 6.9%

rent 5.6% 0.4% 6.6% 2.4% 1.3% 0.1% 2.9% 0.1% 1.0% 0.0% 1.4% 1.4% -0.3%

Increase - 1 1 4 1 4 1 -

Unchanged 5 3 5 6 4 5 8 9

Decrease - - 1 - - - - -

15,680 15,580 15,590 15,620 AverageRent 15,520 15,530 15,520

Changes Changes in 15,470

15,480 15,460 15,460 15,450

Forecast as of biggining of 3rd FP Actual Forecast for 4th & 5th FP Executive Summary 30

1. Steady growth in distributions per unit (DPU) 3rd FP 4th FP 5th FP Annual DPU (Oct. 2017) (Apr. 2018) (Oct. 2018) Forecast (Note1)

As of June 2017 Forecast Forecast nd N/A 10,200 yen (2 FP) 5,100 yen 5,100 yen

(Note2) (Note2) As of December 11 Actual Forecast Forecast (3rd FP) 5,175 yen 5,600 yen 5,600 yen 11,200 yen

+75 yen +500 yen Maintain DPU level Stabilized DPU +10%

2. Improvement in quality of our portfolio 3. Improvement in strength of our financial base

Appendix 1. Basic Information Features of MIRAI 32

 The portfolio consists mainly of large-scale offices with middle-class rents, which feature stable supply and demand. Portfolio  For retail properties and hotels, emphasis is placed on stability through Strategy long-term fixed contracts.  Pursues upside scenario through the inclusion of Growth Asset

Average remaining Average interest  Strong bank formation centering on the Mitsui Group maturity (Note) rate (Note Financial  Ranked among the highest of all JREITs in terms of conditions for the debt procurement 6.7 years 0.54 % Strategy  A+ (stable) for the long-term issuer rating from Japan Credit Rating Credit Agency, Ltd. rating A+(stable)

Mid-term  Formulated Mid-term Management Plan with targets to be achieved by April 2020 3rd FP Actual DPU DPU Target Management  Pursue improvement of profitability and risk diversification in order to Plan return to growth path 5,175 yen 5,700 yen “Repower 2020”  DPU target of 5,700 yen or more through continuous DPU growth

 Double sponsorship by Mitsui & Co. and IDERA Capital Management Ltd. Double  The sponsors proactively support deal sourcing, fundraising and leasing Sponsorship activities.  Starting co-ownership of properties with Mitsui & Co. Private REIT in February 2018

Note: As of the end of October 2017; excludes short-term loan of 10 billion yen due to be repaid with proceeds from the transfer of Shinagawa Seaside Parktower (quasi- co-ownership interest of 36.6%). Portfolio Strategy 33

Our portfolio consist primarily of Core Assets that can be expected to generate stable cash flow in Tokyo area.

Core Assets Growth Assets

Core Asset Focus on the three major Limited Inclusion of Growth Assets utilizing the strengths of the sponsors metropolitan areas of Japan (Note1) utilizing the competitive edge in the real estate business (Investment ratio: 70% or more) of the sponsors

Office Core Plus Ratio by asset type (Note2) Hotel 9.2% Assets targeting profitability improvement through upside achieved by leasing, renovation or conversion Retail 25.0% Core Asset 96.1% Retail Nara Heijo Plaza Office Acquisition price 65.8% 4,100million yen Ratio by area (Note2) Appraisal NOI yield Others 6.0% 8.7 % Hotel Osaka Area 16.6% Three Metropolitan New Type Areas Tokyo Area Assets in Blue ocean, with less acquisition 94.0% 77.4% competition and market expansion can be expected

Note1: Three major metropolitan areas of Japan mean Tokyo Area (Tokyo-to, Kanagawa-ken , Saitama-ken and Chiba-ken), Osaka Area (Osaka-hu, Kyoto-hu, Hyogo-ken, Nara-ken, Wakayama-ken and Shiga-ken) and Nagoya Area (Aichi-ken, Mie-ken, Gifu-ken). Note2: The ratio reflects planned assets acquisition and disposition and is based on the planned acquisition price as of December 13, 2017. Note3: New Type Assets will be acquired upon development of the Asset Management Company’s operating structure (or for some asset classes, after laws and regulations etc. have been put in place.) Portfolio Map (Including Assets to be Acquired and Disposed) 34

Office Retail Hotel 1 2 3 5 7 8 9 10 11 12 13 14 15 16 17

Shinagawa Kawasaki Shinjuku Hillcoat MIUMIU Kobe Shibuya AEON Daiki Hotel Sunroute Daiwa Roynet Super Hotel Super Hotel Super Hotel Super Hotel Comfort Hotel Seaside Tech Center Eastside Higashi-Shinjuku World East Kasai Izumi-Chuo Niigata Hotel Akita Sendai Osaka Saitama Kyoto Shin-Yamaguchi Parktower Square Building Hirose-dori Tennoji Omiya Karasumagojo

4 6 18 (23 Wards of Tokyo) Hillcoat Higashi-Shinjuku

Shinjuku Eastside Square

AEON Kasai Tokyo Front Nippo Nara Heijo Terrace Hommachi Plaza Note1 Tokyo Front Terrace Building Shinagawa Seaside Note2 Note2 Ratio by area Ratio by asset type Parktower Daiwa Roynet Hotel Akita Others Hotel 9.2% Shibuya World 6.0% Osaka East Building Area Retail 16.6% 25.0% Three Super Hotel Sendai Hirose-dori Metropolitan Core Asset Hotel Sunroute Areas 96.1% Niigata 94.0% Tokyo Area Office 77.4% 65.8% Comfort Hotel Shin-Yamaguchi Super Hotel Saitama Omiya

Kawasaki Tech Center Note2 Ratio by tenants Note3 GK Nara Heijo Plaza 13.5% (Osaka Area) AEON Retail Top 10 7.3% Tenants NTT COMWARE 6.8% Super Hotel Kyoto Karasumagojo 52.9% MIUMIU Kobe PRADA Japan 5.2% Nippo Hommachi Building Super Hotel 4.8% Daiki Izumi-Chuo Super Hotel Osaka Tennoji Nara Heijo Plaza

Note1: The picture of Nara Heijo plaza is based on the current plan and is subject to change. Note2: The ratio by tenants is calculated based on the annual rent. Others are calculated based on the acquisition price. Note3: It is the master lessee (pass-through type) of Nara Heijo Plaza and it enters into lease contracts with a large number of end tenants. The ratio above is based on the minimum guaranteed rent agreed between GK Nara Heijo Plaza, MIRAI and Yamaki Co,. Ltd. Portfolio List (Including Assets to be Acquired and Disposed) 35

million yen Acquisition Date of % of the Appraisal NOI Yield After Occupancy Asset Type Property Name Address Price Acquisition Portfolio NOI Yield Depreciation Rate (million yen) (Note1) (Note2) 20,288 Shinagawa Seaside Parktower Shinagawa-ku, Tokyo Dec. 2016 Note3 19.2% 4.3 3.5 100.0 Kawasaki Tech Center Kawasaki-shi, Kanagawa Dec. 2016 23,182 22.0% 5.0 4.3 97.5 Large

Office Shinjuku Eastside Square Shinjuku-ku, Tokyo Dec. 2016 10,000 9.5% 3.9 3.1 100.0 Tokyo Front Terrace Shinagawa-ku, Tokyo Oct. 2017 10,592 10.0% 4.1 3.7 96.5 Hillcoat Higashi-Shinjuku Shinjuku-ku, Tokyo Dec. 2016 3,900 3.7% 4.2 3.7 100.0 Mid-sized Nippo Hommachi Building Osaka-shi, Osaka (Note4) 1,465 1.4% 5.4% 4.8% 100.0% Office (6 properties) 69,427 65.8% 4.4 3.8 98.6 MIUMIU Kobe land Kobe-shi (Note5) 6,700 6.3% 4.7 4.5 100.0 Urban

Retail Shibuya World East Building Shibuya-ku, Tokyo Dec. 2016 3,200 3.0% 4.3 4.1 100.0 AEON Kasai Edogawa-ku, Tokyo Dec. 2016 9,420 8.9% 5.3 4.7 100.0 Core Assets Community Based Daiki Izumi-Chuo Izumi-shi, Osaka Dec. 2016 3,000 2.8% 5.3 4.7 100.0 Retail (4 properties) 22,320 21.1% 5.0 4.6 100.0 Hotel Sunroute Niigata Niigata-shi, Niigata Dec. 2016 2,108 2.0% 6.4 4.8 94.6 Daiwa Roynet Hotel Akita Akita-shi, Akita Dec. 2016 2,042 1.9% 5.9 4.0 100.0 Super Hotel Sendai Hirose-dori Sendai-shi, Miyagi Dec. 2016 1,280 1.2% 5.9 4.9 100.0 Hotel Budget Super Hotel Osaka Tennoji Osaka-shi, Osaka Dec. 2016 1,260 1.2% 5.4 4.8 100.0 Super Hotel Saitama Omiya Saitama-shi, Saitama Dec. 2016 1,123 1.1% 5.4 4.1 100.0 Super Hotel Kyoto Karasumagojo Kyoto-shi, Kyoto Dec. 2016 1,030 1.0% 5.4 4.7 100.0 Comfort Hotel Shin-Yamaguchi Yamaguchi-shi, Yamaguchi Dec. 2016 902 0.9% 5.7 4.0 100.0 Hotel (7 properties) 9,745 9.2% 5.8 4.5 98.5 Community Growth Assets Retail Nara Heijo plaza (Note6) Nara-shi, Nara Oct. 2017 4,100 3.9% 8.7 6.8 100.0 Based Total 105,592 100% 4.9 4.2 99.3

Note1: The value is calculated by dividing the appraisal NOI by the acquisition price (or planned acquisition price for assets to be acquired and acquisition price for assets to be disposed), rounded to the nearest tenth. Appraisal NOI is Net Operating Income derived by subtracting operating expenses from operating revenue on appraisal report, and is income before subtracting depreciation. It differs from net cash flow (NCF) which adjusts for investment gains on security deposits, etc. and capital expenditures. The appraisal NOI above is first year NOI (the second or third if there is a special factor in the first year) based on the DCF method. For trust beneficiary interests that are co-owned by MIRAI, the calculation is based on the amount obtained by multiplying the appraisal NOI of the real estate in trust by the percentage of quasi-co-ownership interest. The same shall apply hereafter. Note2: The value is calculated by dividing appraisal NOI after depreciation by the acquisition price (or planned acquisition price for assets to be acquired and acquisition price for assets to be disposed)rounded to the nearest tenth. Depreciation amount is estimated by the Asset Management Company under straight-line method. The same shall apply hereafter. Note3: The value shown relates to the co-ownership interest belonging to MIRAI (63.4%) after the sales of 36.6% interest (planned transfer date: the end of February 2018 or the date agreed upon separately). Note4: Acquisition date agreed separately by the end of February 2018. Note5: MIRAI acquired land as of December 16, 2016 and building as of November 9, 2017. Note6: The acquisition price of this property is 4,100 million yen. However, an additional investment is planned for the renovation of the facility after the acquisition by MIRAI, and the total investment including the additional investment is estimated to be 5,050 million yen. The yield is based on the acquisition price of 5,050 million yen, and the yield on the initial acquisition price is 11.0% for the appraisal NOI yield and 8.7% for the NOI yield after depreciation. 本文ページ

Positioning of MIRAI Corporation Interest-bearing Debt) 36

Financial Highlight

Average (%) 52% 1.5 3rd /17 LTV 47% 48%

Interest Interest Rate 1.0 0.54% Average 0.5 0.48%

Interest Rate 0.46% Note 0.0 MIRAI Average 6.7 years 3476 remaining 5.8 years maturity 5.7 years

Average Remaining MaturityAverageRemaining (years) nd Long-term 100% 7.0 2 /17 fixed interest 86% 6.0 debt ratio 84% 5.0 After 4.0 End of 2nd FP End of 3rd FP repayment 3.0 2.0

Japan Credit Rating Agency, Ltd. 1.0

0.0 Rating A+(stable) MIRAI *Annual review result to be announced in January 2018. 3476

Note: Compiled by the Asset Management Company based on the report issued by SMBC Nikko Securities in Oct. 2017. The comparison includes MIRAI and all AA- rated (JCR) J-REITs. 本文ページ

Positioning of MIRAI Corporation (Valuation 37

J-REITs sponsored Diversified by Sogo-shosya AA-rated J-REITs (Note1) (general trading companies) J-REITs

7.0% 6.2% 5.8% DPU yield DPU 5.6% Average 4.9% 6.0% 5.2% Average 4.5% 4.9% 4.9% 4.7% 4.7% Average 4.2% 5.0% 4.3% 4.4% 4.3% 4.1% 4.3% 4.4% 4.2% 4.3% 4.2% 4.0% 4.0% 4.0% 4.0% 4.0% 4.0% 3.9% 3.8% 4.0% 3.3% 3.0%

Note3 2.0% 1.0% 0.0% MIRAI 3476

Price NAVPrice toratio (X) 1.4 1.19 1.12 Average 1.02 1.16 1.2 Average 0.94 1.12 1.09 Average 0.97 1.01 1.05 1.06 1.02 1.02 0.93 0.99 0.96 0.94 0.99 0.94 0.98 1.0 0.86 0.87 0.88 0.89 0.88 0.90 0.85 0.85 0.75 0.8 0.6 0.4

0.2 Note3 0 MIRAI 3476

Note1: J-REITs rated AA- by Japan Credit Rating Agency, Ltd. Note2: Comparison in each category are selected by the Asset Management Company from the viewpoints of asset size and type, among others. Note3: DPU yield is calculated based on the closing price of October 31, 2017. Price to NAV ratio = Closing price of October 31, 2017 * number of units issued / [net assets after distributions (latest financial results disclosed) + unrealized gain (appraisal vale of real estate – book value of real estate )] Unitholders’ composition 38

Number of Unitholders and Investment Units by Type of Unitholders Major Unitholders Number of vs. vs. Number of Number of Investment % of Total previous % of Total previous Unitholders Investment % of Total Unitholders Units FP FP Units

Individuals Japan Trustee Services Bank, Ltd. 152,604 51.9% (9.1)% 16,634 97.5% (0.1)% 41,594 14.2% /Others Trust account

Financial 102,271 34.8% 9.5% 54 0.3% (0.0)% The Master Trust Bank of Japan, Ltd. Institutions 35,634 12.1% Trust account Other Japanese 33,384 11.4% (1.0)% 320 1.9% (0.1)% Corporations Mitsui & Co. Asset Management 5,000 1.7% Holdings Ltd. Non-Japanese 5,491 1.9% 0.6% 45 0.3% 0.3% IDERA Capital Management Ltd. 5,000 1.7% Total 293,750 100.0% - 17,053 100.0% - The Nomura Trust and Banking Co., Ltd. 4,603 1.6% Investment trust account

Non-Japanese Other Japanese Trust & Custody Services Bank, Ltd. 1.9% corporations 4,362 1.5% 1.9% Securities investment trust account) Other Japanese Financial corporations institutions 11.4% 0.3% Non- Japanese 0.3% The Hachijuni Bank, Ltd 3,808 1.3%

Number of Individuals 1,731 0.6% Number of Investment Unitholders Units Individuals 1,290 0.4%

Financial BNP PARIBAS SECURITIES SERVICE institutions 1,290 0.4% 34.8% Individuals/Others Individuals JERSEY/JASDEC/NON TREATY 51.9% /Others 97.5% Total 104,369 35.5% Company Profile 39

Asset Manager Governance structure of MIRAI

Name Mitsui Bussan & Idera Partners co., Ltd. Sponsors 2 Asset Custodian Address 3-2-1 Nishi-kanda Chiyoda-ku, Tokyo 101-0065, Japan Mitsui & Co., Ltd Sumitomo Mitsui Trust Representative Director, President/ Michio Suganuma Bank, Limited Representative Director, Vice President CIO/ Shugo Yanagiya IDERA Capital Executive Director, CFO/ Takashi Ueno Management Ltd. Executive Director, Head of Finance & Administrative Division/ General management Note Meeting of Hiroshi Hiratsuka General Director (part-time)/ Toshifumi Nagahama 6 Unitholders 3 Director (part-time)/ Takuya Yamada Administrator Corporate Auditor (part-time)/ Ichiro Tsutsumi (accounting) External Asset Heiseikaikeisha Tax Mitsui & Co. Asset Management Holdings Ltd. 50% 1 General Shareholders Manager Corporation IDERA Capital Management Ltd. 50% Meeting of Mitsui & IDERA Paid-in capital 200 million Unitholders Partners Co., Ltd. Building lots and building transaction business; Tokyo Governor's 4 General Office license(1) No.98041 Administrator Registration & Discretionary transaction agent; Minister of Land, Infrastructure, and Mizuho Trust & Banking Licenses Transport Approval No.94 Support agreement Co., Ltd. Financial Instruments Business Operator (Director of Kanto Finance regarding leasing and Bureau(Kinsho) No.2876) renovation of retail General Meeting of properties Accounting Shareholders Auditor Supporter 7 5 Transfer Agent Corporate Auditor Ernst & Young Yamaki Co., Ltd Sumitomo Mitsui Trust Board of Directors ShinNihon LLC Bank, Limited Investment Compliance Management Committee Committee President Asset management agreement Asset custody agreement Internal Audit Div. Compliance Officer General administration agreement (accounting) General administration agreement (institutional administration) Investment Finance & Transfer agency agreement Management Div. Administrative Div. Sponsor support agreement (Note2) Support agreement Investment Group Management Group

Note1: He will step down at December 31, 2017. Hiroyuki Iwasaki will take office as Executive Director, Head of Investment Management Division at January 1, 2018. Note2: Sponsor support agreements are entered into separately between each of the sponsor company and the Asset Management Company and MIRAI. Asset Management Fee Structure / Result 40

Results of 2nd FP Results of 3rd FP

AM FeeⅠ (based on AUM)

Up to 0.5% per year x total assets (Note) 187 million yen 273 million yen Note: Daily calculation based on actual days in the period on 365 days a year basis, rounded down to the nearest yen.

AM FeeⅡ (based on DPU) DPU before AM Fee II x NOI after depreciation x Up to 0.001% 11 million yen 23 million yen

Acquisition Fees Up to 1.0% x the acquisition price 1,007 million yen 146 million yen

Disposition Fees Up to 1.0% x the disposition price

Merger Fees None None

Up to 1.0% x the appraisal value of real estate related assets the counterparty of the merger holds at the time of merger to be transferred to and to be held by the new merged entity 章区切り

Appendix 2. Information of Real Estate Market 本文ページ

Supply of Office Market and Cases of Office Relocation in Tokyo Area 42

Office relocation by rent revision Marunouchi/Otemachi area Tokyo 23 wards, released in November2017 (Note1)) To be supplied Higashi Shinjuku area 173,200 tsubo Rent per tsubo To be supplied Rent per 40,681 31.3% 33,400 tsubo tsubo Shinjuku JPY Actual Supplies 26,000 East Side Square 36,600 tsubo JPY Actual Supplies 56.3% 149,500 tsubo Nihonbashi area 12.5% Shibuya area Case To be supplied Takata Corporation 107,600 tsubo Rent per To be supplied Minato-ku, Roppongi→Shinagawa-ku, tsubo Higashi-shinagawa, December 2016 82,800 tsubo 30,235 Unchanged Down Up Rent per Actual Supplies tsubo JPY Shinjuku/Toranomon area 96,000 tsubo Actual Supplies 27,636 Case 13,800 tsubo JPY To be supplied JACCS Co., Ltd. 169,700 tsubo Minato-ku, Takanawa→Shinagawa-ku, Shinagawa Seaside Parktower Actual Supplies Rent per Higashi-shinagawa, July 2017 170,500 tsubo tsubo Tenants breakdown 28,273 （As of end of October 2017/ based on rent JPY NTT Case Comware Parker Hannifin Japan, Ltd. Tokyo Front Terrace Minato-ku, Shirokanedai→Shinagawa-ku, Fuijtsu Higashi-shinagawa, in 2017 Compon… Case Accordia Golf Azbil Corporation Biglobe Shinagawa-ku, Higashi-Shinagawa Mercedes Benz → Shinagawa-ku, Kita-Shinagawa, October 2015 Case Higashi Shinagawa area Nike Japan Shinagawa-ku, Higashi-Shinagawa Sum of actual supplies from 2014 to 2016 (Note 2) To be supplied →Minato-ku, Roppongi, end of 2017 Rent per 48,700 tsubo Case (Note 2) Actual Supplies tsubo Sum of projected supplies from 2017 to 2019 34,900 tsubo 16,938 SPARX Group Co., Ltd. Rent for large-size office Shinagawa-ku, Higashi-shinagawa→Minato-ku, kounan, June 2016 JPY (including monthly fee for common areas) as of October 2017

Note1: Compiled by Asset Management Company based on Nikkei Fudosan Market Note2: “To be supplied” described above are based on new supplies in each ward. Source: Sanko Estate “Office Market November 2017” and “Office Rent Date” 本文ページ

Shinagawa Seaside Parktower: Leasing Market 43

Total Leasable Area Asking Rent Occupancy Rate Occupancy Rate Completion (Standard Floor (Minimum Rent) (Oct. 2015) (Nov. 2017) Area)

Shinagawa Seaside July 9,588 tsubo 16,000 yen 36% 100% Parktower 2003 (505 tsubo) (16,000 yen)

July 9,286 tsubo A - 100% 100% 2003 (446 tsubo)

August 7,313 tsubo 16,000 yen B 94% 80% 2004 (434 tsubo) (16,000 yen)

August 5,640 tsubo 16,000yen C 80% 100% 2004 (377 tsubo) (16,000 yen)

August 9,892 tsubo 17,000 yen D 64% 95% 2004 (596 tsubo) (16,000 yen)

September E - - 100% 100% 2002

September 7,909 tsubo 16,000 yen F 72% 93% 2002 (403 tsubo) (16,000 yen)

February 4,070 tsubo 16,000 yen G 73% 80% 2010 (318 tsubo) (16,000 yen)

4,575 tsubo H November 2009 - 100% 100% (512 tsubo)

Note: Based on research by the Asset Management Company and IDERA Capital Management Ltd, and may not be accurate. 本文ページ

Tokyo Front Terrace: Leasing Market 44

Total Leasable Area Asking Rent Occupancy Rate Occupancy Rate Completion (Standard Floor (Minimum Rent) (Oct. 2015) (Nov. 2017) Area)

June 5,841tsubo 18,000 yen Tokyo Front Terrace 0% 97% 1992 (300 tsubo) (18,000 yen)

June 6,663 tsubo 16,000 yen A 98% 99% 1992 (286 tsubo) (16,000 yen)

June 7,678 tsubo 17,000 yen B 98% 96% 1991 (304 tsubo) (17,000 yen)

May 8,500 tsubo C - 98% 100% 1994 (340 tsubo)

April 6,102 tsubo 17,000 yen D 20% 93% 1993 (326 tsubo) (17,000 yen)

January 10,941 tsubo 18,000 yen E 89% 94% 1994 (429 tsubo) (17,000 yen)

January 8,629 tsubo 17,000 yen F 91% 99% 1995 (403 tsubo) (16,000 yen)

June 12,730 tsubo G - 100% 100% 1996 (647 tsubo)

Note: Based on research by the Asset Management Company and IDERA Capital Management Ltd, and may not be accurate. 章区切り

Appendix 3. Financials in Detail Statement of Income/ Balance Sheet 46

Statement of Income Balance Sheet million yen Fiscal period Fiscal period Fiscal period Fiscal period Item ended ended Item ended ended April 30, 2017 October 31, 2017 April 30, 2017 October 31, 2017 Operating revenue 2,395 3,375 Current assets 5,850 5,581 Lease business revenue 1,948 2,677 Cash and deposits 2,149 3,527 Other lease business revenue 446 697 Cash and deposits in trust 1,768 1,736 Operating expenses 1,115 1,713 Consumption taxes receivable 1,794 128 Expenses related to rent business 877 1,342 Other 138 188 Asset management fee 198 296 Non-current assets 102,571 117,434 Asset custody fee 2 3 Property, plant and equipment 102,270 117,007 Administrative service fees 7 11 Intangible assets/Other 301 426 Directors’ compensations 3 3 Total assets 108,422 123,015 Other operating expenses 25 54 Current liabilities 7,886 11,387 Operating profit 1,279 1,662 Operating accounts payable 196 387 Non-operating income 0 4 Short-term loans payable 7,000 10,000 Non-operating expenses 243 146 Accounts payable – other 233 501 Interest expenses 85 119 Advances received 440 489 Borrowing related expenses 25 27 Other 15 9 Investment unit issuance expenses 126 - Non-current liabilities 47,902 58,334 Other 5 - Long-term loans payable 44,000 54,000 Ordinary profit 1,037 1,520 Tenant leasehold and security deposits 3,685 4,215 in trust Income taxes 1 0 Derivatives liabilities 216 119 Profit 1,036 1,520 Total liabilities 55,788 69,722 Retained earnings (deficit) brought (78) 216 forward Unitholders’ equity 52,850 53,412 Unappropriated retained earnings Unitholders’ capital 51,892 51,676 957 1,736 (undisposed loss) Surplus 957 1,736 Valuation and translation adjustments (216) (119) Net assets 52,633 53,293 Total liabilities and net assets 108,422 123,015 Statement of Cash Flows 47

Statement of Cash Flows million yen Fiscal period Fiscal period Item ended ended April 30, 2017 October 31, 2017 Cash flows from operating activities 109 3,587 Profit before income taxes 1,037 1,520 Depreciation 294 362 Investment unit issuance expenses 126 - Interest expenses 85 119 Decrease (increase) in operating accounts receivable (77) (21) Decrease (increase) in prepaid expenses (61) (28) Decrease (increase) in consumption taxes refund receivable (1,794) 1,666 Increase (decrease) in operating accounts payable 181 (100) Increase (decrease) in accounts payable - other 224 267 Increase (decrease) in advances received 440 49 Decrease (increase) in long-term prepaid expenses (278) (114) Other, net 12 (12) Interest expenses paid (83) (119) Cash flows from investing activities (99,080) (14,265) Purchase of property, plant and equipment in trust (102,549) (14,808) Other, payment 3,468 543 Cash flows from financing activities 102,615 12,048 Increase(decrease) in short-term loans payable 7,000 3,000 Proceeds from long-term loans payable 44,000 10,000 Proceeds from issuance of investment units 51,615 - Dividends paid - (951) Net increase (decrease) in cash and cash equivalents 3,643 1,371 Cash and cash equivalents at beginning of period 67 3,710 Cash and cash equivalents at end of period 3,710 5,082 Financial Summary by Property 48

million yen Shinagawa Shinjuku Hillcoat Shibuya Kawasaki Tokyo MIUMIU Daiki Izumi- Seaside Eastside Higashi- World East AEON Kasai Tech Center Front Terrace Kobe (land) Chuo Parktower Square Shinjuku Building

Operating revenue 1,166 889 263 5 162 87

Lease business revenue 989 481 223 4 162 79

Other lease business 177 407 39 0 - 7 revenue

Operating expense 430 348 62 1 2 15

Outsourcing service d 86 77 23 0 Not disclose - 4 Not disclosed Not disclosed expenses Note1 Note1 Note1

Utilities expenses 167 165 17 0 - 5

Property and other taxes 94 53 17 - 1 5

Repair expenses 17 10 1 - - 0

Other expenses related to 63 41 2 2 0 0 rent business

NOI 735 540 201 4 85 159 71 246 74

Depreciation 126 78 38 3 8 - 2 26 9

Income(loss) from real 609 461 162 0 77 159 69 220 64 estate leasing business

Capital expenditure 29 117 2 - 3 - - - 0

NCF 706 423 198 4 81 159 71 246 73

Book value 32,184 23,503 10,093 10,758 4,033 6,491 3,284 9,523 3,086

NOI yield Note 2 4.5 4.6% 4.0% 2.3% 4.2% 4.9% 4.3% 5.1% 4.8%

NOI yield after depreciation Note 2 3.8% 3.9% 3.2% 0.4% 3.8% 4.9% 4.2.% 4.6% 4.1%

Note1: Not disclosed because tenant’s consent was not obtained. Note2: Based on book value as of October 2017. Financial Summary by Property 49

million yen Super Hotel Super Hotel Comfort Hotel Hotel Sunroute Daiwa Roynet Super Hotel Super Hotel Nara Heijo Sendai Hirose- Kyoto Shin- Portfolio Niigata Hotel Akita Osaka Tennoji Saitama Omiya Plaza dori Karasumagojo Yamaguchi

Operating revenue 72 69 44 37 35 31 30 - 3,375

Lease business revenue 72 69 44 37 35 31 29 - 2,677

Other lease business 0 - - - - 0 0 - 697 revenue

Operating expense 9 10 6 3 4 3 4 1 980

Outsourcing service 1 1 - - - - 0 - 205 expenses

Utilities expenses ------362

Property and other taxes 5 7 5 3 4 3 3 - 248

Repair expenses 1 0 - - - - 0 - 36

Other expenses related to 1 0 0 0 0 0 0 1 126 rent business

NOI 62 58 38 33 30 27 25 (1) 2,395

Depreciation 16 19 6 3 7 3 7 4 362

Income(loss) from real 45 39 31 29 23 23 18 (5) 2,033 estate leasing business

Capital expenditure 3 - - - - - 0 - 157

NCF 59 58 38 33 30 27 25 (1) 2,237

Book value 2,159 2,062 1,289 1,274 1,129 1,042 915 4,176 117,007

NOI yield Note1 5.7% 5.7% 5.9% 5.2% 5.4% 5.3% 5.6% (2.5) 4.6% (Note2)

NOI yield after depreciation (Note2) Note1 4.2% 3.8% 4.8% 4.7% 4.1% 4.6% 3.9% (8.6) 3.9%

Note1: Based on book value as of October 2017. Note2: Figures represent yield after adjusting for number of operating days for properties acquired during fiscal period. Without such adjustment, NOI yield is 4.1% and NOI yield after depreciation is 3.4%. Appraisal Value Summary 50

Change Value Capitalization Method DCF Method Appraisal Calculated Book Value Value Value Terminal Asset Type Property Name Value (million Using Cost Capitalization Discount (million yen) ratio (million (million Capitalization (million yen) yen) Approach Rate Rate (million yen) yen) yen) Rate Shinagawa Seaside Parktower 32,184 32,500 315 1.0% 29,900 32,600 4.2% 32,400 3.8% 4.3%

Kawasaki Tech Center 23,503 23,900 396 1.7% 16,300 24,400 4.4% 23,700 4.2% 4.6%

Office Shinjuku Eastside Square 10,093 10,050 (43) (0.4)% 10,150 10,200 3.9% 9,900 3.7% 4.1%

Tokyo Front Terrace 10,758 10,793 34 0.3% 10,090 10,893 4.0% 10,693 3.7% 4.1%

Hillcoat Higashi-Shinjuku 4,033 3,920 (113) (2.8) 3,690 3,960 4.2% 3,870 3.9% 4.3%

Office (5 properties) 80,572 81,163 590 0.7% 70,130 82,053 - 80,563 - -

MIUMIU Kobe land 6,491 6,830 338 5.2% - 7,470 4.2% 7,280 4.0% 4.4%

Shibuya World East Building 3,284 3,390 105 3.2% 3,580 3,450 3.7% 3,330 3.5% 3.9%

Retail AEON Kasai 9,523 9,570 46 0.5% 8,990 9,600 5.1% 9,540 4.7% 5.3%

Daiki Izumi-Chuo 3,086 3,050 (36) (1.2)% 3,440 3,080 5.1% 3,030 4.9% 5.3%

Nara Heijo Plaza 4,176 5,520 1,343 32.2% 7,900 5,410 5.8% 5,570 5.6% 6.0%

Retail (5 properties) 26,562 28,360 1,797 6.8% 23,910 29,010 - 28,750 - -

Hotel Sunroute Niigata 2,159 2,250 90 4.2% 1,370 2,250 5.2% 2,250 5.0% 5.4%

Daiwa Roynet Hotel Akita 2,062 2,190 127 6.2% 1,220 2,170 5.3% 2,200 5.1% 5.5%

Super Hotel Sendai Hirose-dori 1,289 1,510 220 17.1% 1,480 1,520 4.7% 1,490 4.5% 4.9%

Hotel Super Hotel Osaka Tennoji 1,274 1,550 275 21.6% 885 1,570 4.3% 1,530 4.1% 4.5%

Super Hotel Saitama Omiya 1,129 1,200 70 6.3% 1,100 1,210 4.7% 1,190 4.5% 4.9%

Super Hotel Kyoto Karasumagojo 1,042 1,260 217 20.9% 876 1.280 4.3% 1,240 4.0% 4.6%

Comfort Hotel Shin-Yamaguchi 915 959 43 4.8% 541 958 5.2% 960 5.0% 5.4%

Hotel (7 properties) 9,872 10,919 1,046 10.6% 7,472 10,958 - 10,860 - -

Total 117,007 120,442 3,434 2.9% 101,512 122,021 4.4% 120,173 4.1% 4.6%

Note: Only land was acquired at the end of the 3rd period and hence value based on cost approach is not included as the building is yet to be acquired. The appraisal value include the value of the land only. The income approach valuation based on direct capitalization method and DCF method is based on both the land and the buildings to be acquired upon completion (acquisition price JPY 400 million). Appraisal Value Summary (changes from previous period) 51

Terminal Appraisal Value Capitalization Rate Discount Rate Capitalization Rate Asset Type Property Name Changes in Changes in (million yen) Appraisal Appraisal (change) (change) (change) (amount) (ratio) Shinagawa Seaside Parktower 32,500 - - 4.2% - 3.8% - 4.3% -

Kawasaki Tech Center 23,900 - - 4.4% - 4.2% - 4.6% -

Office Shinjuku Eastside Square 10,050 - - 3.9% - 3.7% - 4.1% -

Tokyo Front Terrace 3,920 (70) (1.8)% 4.2% - 3.9% - 4.3% -

Hillcoat Higashi-Shinjuku 10,793 - - 4.0% - 3.7% - 4.1% -

Office (5 properties) 81,163 (70) ------

MIUMIU Kobe land 6,830 180 2.6% 4.2% - 4.0% - 4.4% -

Shibuya World East Building 3,390 - - 3.7% - 3.5% - 3.9% -

Retail AEON Kasai 9,570 - - 5.1% - 4.7% - 5.3% -

Daiki Izumi-Chuo 3,050 (20) (0.7)% 5.1% - 4.9% - 5.3% -

Nara Heijo Plaza 5,520 - - 5.8% - 5.6% - 6.0% -

Retail (5 properties) 22,840 160 ------

Hotel Sunroute Niigata 2,250 40 1.8 5.2% 0.1 5.0% 0.1 5.4% 0.1

Daiwa Roynet Hotel Akita 2,190 (10) (0.5) 5.3% - 5.1% - 5.5% -

Super Hotel Sendai Hirose-dori 1,510 - - 4.7% - 4.5% - 4.9% -

Hotel Super Hotel Osaka Tennoji 1,550 - - 4.3% - 4.1% - 4.5% -

Super Hotel Saitama Omiya 1,200 - - 4.7% - 4.5% - 4.9% -

Super Hotel Kyoto Karasumagojo 1,260 - - 4.3% - 4.0% - 4.6% -

Comfort Hotel Shin-Yamaguchi 959 (1) (0.1) 5.2% - 5.0% - 5.4% -

Hotel (7 properties) 10,919 29 0.3 ------

Total 120,442 119 ------Overview of Loans 52

Amount Drawdown Maturity Principal Debt Providers Interest Rate Term Description million yen Date Date Repayment Method

Sumitomo Mitsui Banking Corporation 0.75% November 8,000 (Note 10 years Resona Bank, Limited. 30, 2026

0.59% November Sumitomo Mitsui Trust Bank, Limited 5,000 8 years Note 29, 2024

Sumitomo Mitsui Banking Corporation 0.50% The Bank of Fukuoka, LTD. 10,000 Note December 16, November 7 years Resona Bank, Limited. 2016 30, 2023

Development Bank of Japan Inc. 2,000 0.62%

Sumitomo Mitsui Trust Bank, Limited 0.37% November 7,000 Note 6 years Shinsei Bank, Limited 30, 2022 Long- term Loan November Bullet Unsecured Mizuho Bank, Ltd. 10,000 0.37% 5 years 30, 2021 Repayment and Non- on Maturity guaranteed April 28, April 30, Mizuho Trust & Banking Co., Ltd. 2,000 0.45% 7 years 2017 2024

Sumitomo Mitsui Trust Bank, Limited 0.54% 3,000 Note Shinsei Bank, Limited August 31, 7.8 years 2025 0.54% October 26, The Nanto Bank, Ltd 1,000 Note 2017

0.71% July 30, Resona Bank, limited. 1,000 9.8 years Note 2027

Sumitomo Mitsui Banking Corporation 0.73% October 31, October 29, 5,000 Note 10 years The Bank of Fukuoka, LTD. 2017 2027

Short-term 1M TIBOR October 26, April 26, Sumitomo Mitsui Banking Corporation 10,000 0.5 years Loan +0.130% 2017 2018

Total / Average 64,000 0.48% 6.3 years

Note: MIRAI signed an interest rate swap agreement. Accordingly, the interest rate provided above has been fixed under the terms of this agreement and will be used in repayment. 章区切り

Appendix 4. Portfolio in Detail Details of Each Property (Office Buildings) 54

Shinagawa Seaside Parktower 1 2 Kawasaki Tech Center (63.4% quasi-co-ownership ) Office Office

Acquisition Acquisition Price Note1 20,288 million yen Price 23,182 million yen Appraisal NOI Appraisal NOI yield 4.3 % yield 5.0 %

 Large office building located in the Shinagawa Seaside Forest  Highly competitive large office building in the Kawasaki Station complex, an urban redevelopment project area  Well-served by public transport, located 2 minutes’ walk from  Well-served by public transport, located 7 minutes’ walk from Shinagawa Seaside Station on the Rinkai Line and 8 minutes’ walk Keikyu Kawasaki Station and 9 minutes’ walk from JR Kawasaki from Aomono-yokocho Station on the Keikyu Line Station  Appealing to tenants, offering flexible layout with column-free floor  High-grade office building offering large floor plates space and superior facilities  Acquired after value was increased by IDERA  Appealing to tenants in the Kawasaki Station area as superiority in terms of scale is recognized. (total office floor area exceeding 10,000 tsubo) Address 4-12-4, Higashi-Shinagawa, Shinagawa-ku, Tokyo Land area 17,386.11 (the entire property) Address 580-16, Horikawa-cho, Saiwai-ku, Kawasaki, Kanagawa Floor area 55,930.90 (the entire property) Land area 5,662.48 Parking SRC 1F Structure Office/Shop SRC/RC/S B2/25F Floor area 47,036.44 Parking SRC 1F Structure S/RC/SRC B3/20F Occupancy rate Occupancy rate 100.0% (23) 97.5% (20) (number of tenants) (number of tenants) Completion September 2002 July 2003 Completion February 1988

Note1: MIRAI has determined to dispose of 36.6% quasi-co-ownership at the end of February 2018 or the date agreed separately. The ratio is calculated based on the figure after the disposition Note2: MIRAI owns sectional ownership and part co-ownership of the property. Details on Each Property (Office Buildings) 55

3 Shinjuku Eastside Square Office 4 Hillcoat Higashi-Shinjuku Office

Acquisition Acquisition Price 10,000 million yen Price 3,900 million yen Appraisal NOI Appraisal NOI yield 3.9 % yield 4.2 %

 Large office building situated in Higashi-shinjuku built as part of urban ▪ Located 3 minutes’ walk from Higashi-Shinjuku Station on the redevelopment project (Acquired a 50% quasi-co-ownership of the trust Tokyo Metro and Toei Subway Lines, which is currently beneficiary interest of a trust which owns 10% co-ownership interest) undergoing redevelopment  High level of visibility and well-served by public transport, located 1 minute walk from Higashi-Shinjuku Station on the Tokyo Metro and Toei ▪ Comparatively good location within the area, facing Meiji Dori Subway Lines and 6 minutes’ walk from the Shinjuku-sanchome Station Avenue and having a high level of visibility on the Tokyo Metro and Toei Subway Lines. ▪ Superior column-free office space allowing for flexible office  Appealing to tenants, offering S-class office space for flexibility of layout layouts  Acquired from fund managed by sponsor, the Mitsui & Co. Group

Address 6-27-30, Shinjuku, Shinjuku-ku, Tokyo Address 2-2-15, Kabuki-cho, Shinjuku-ku, Tokyo Land area 25,320.28 (the entire property) Land area 628.09 Floor area 167,031.19 (the entire property) Floor area 4,480.44 Structure S/RC B2/20F Structure SRC B1/8F Occupancy rate Occupancy rate 100% (40) 100% (2) (number of tenants) (number of tenants) Completion March 2012 Completion July 1987 Details on Each Property (Office Buildings) 56

5 Tokyo Front Terrace (50.2% quasi-co-ownership ) Office 6 Nippo Hommachi Building to be acquired) Office

Acquisition Acquisition Price 10,592 million yen Price 1,465 million yen Appraisal NOI Appraisal NOI yield 4.1 % yield 5.4 %

▪ Large office building situated in” Sea Fort Square”  Within a one-minute walk from Osaka Municipal Subway Sakaisuji- ▪ Within a one-minute walk from Tennozu Isle Station of the Tokyo Hommachi Station and six-minute walk from Osaka Municipal Monorail and a five-minute walk from the same of Tokyo Waterfront Subway Hommachi Station. Area Rapid Transit ▪ Renovated in 2015  Common areas were renovated in 2012 and café space for tenants ▪ Despite superior access and office specification, reasonable rent is was established to differentiate from neighboring offices offered  Located in the central part of Osaka, the area is popular not only for ▪ Acquired after value-added by IDERA office but also for residential with recent developments of tower condos.

Address 2-3-14, Higashi-Shinagawa, Shinagawa-ku, Tokyo Address 2-4-6, Minami-Honmachi, chuo-ku, Osaka, Osaka Land area 17,189.24 Note 1) Land area 502.95 Floor area 146,697.51 Note 2 Floor area 3,841.12 Structure SRC B2/30F Structure SRC 11F Occupancy rate Occupancy rate 96.5% 22 100% 40 (number of tenants) (number of tenants) Completion June 1990 Completion August, 1990

Note1: The trust whose beneficiary interest MIRAI acquired holds the co-ownership interests concerning part of the entire site of “Sea Fort Square”, including the site of the property. The proportion of the co-ownership interests is 3,675,562/10,000,000. Other sections of the entire site of ”Sea Fort Square” are owned by third parties, with site usage right established under management agreement. Note2: The total floor area of the entire complex is presented. The trust whose beneficiary interests MIRAI acquired owns exclusive floor area equal to 28,954.48 based on real estate register, corresponding to sectional ownership and co-ownership interest. MIRAI owns 50.2% of the quasi co-ownership beneficiary interests of the trust. Details on Each Property (Retail Properties) 57

(Note) 7 MIUMIU Kobe (land) Retail 8 Shibuya World East Building Retail

Acquisition Acquisition Price 6,700 million yen Price 3,200 million yen Appraisal NOI Appraisal NOI yield 4.7 % yield 4.3 %

 Facing Akashi-cho Street in Kobe, home to many luxury brand shops  A rare property whose location and size is appealing to high-end brand shops, etc.  2 minutes’ walk from Shibuya Station on the Tokyo Metro and Tokyu Lines, faces Meiji Dori Avenue and has a high level of visibility

 In addition to large-scale development around Shibuya Station, an Transaction Scheme The building urban redevelopment project is also underway in neighboring areas. An MIRAI increase in activity across the whole area is expected and the location Construction by PRADA JAPAN A new fixed of the property may become more highly rated. PRADA JAPAN PRADA JAPAN term building lease The land The land lease agreement agreement  ‘’Shibuya Cast’’ which was under construction the project name of Seller MIRAI MIRAI Shibuya Miyashita-cho plan opened in April 2017. At this time After completion

Address 18-1, Akashi-cho, Chuo-ku, Kobe, Hyogo Address 1-23-18, Shibuya, Shibuya-ku, Tokyo Land area 383.83 Land area 267.99 Floor area 874.03 Floor area 1,880.68 Structure S 3F Structure SRC 10F Occupancy rate Occupancy rate 100% (1) 100% (8) (number of tenants) (number of tenants) Completion July 2017 Completion October 1984

Note: The building under construction by Prada Japan Co., Ltd. was completed in August 2017. MIRAI acquired the building on November 9, 2017 at which time the original land lease agreement was canceled and replaced by new fixed term building lease agreement for the same rent. Details on Each Property (Retail Properties) 58

9 AEON Kasai Retail 10 Daiki Izumi-Chuo Retail

Acquisition Acquisition Price 9,420 million yen Price 3,000 million yen Appraisal NOI Appraisal NOI yield 5.3 % yield 5.3 %

 Model store in Aeon’s first “Grand Generation’s ▪ With high customer traffic from the area surrounding Mall”, which underwent renewal in 2013. MIRAI has Izumi-Chuo Station on Semboku Rapid Railway, a stable concluded a long-term master lease agreement and trade area population, and easy access from the major stable revenue is expected. roads, the site offers stable operating environment as a retail facility in the medium and long term  Located in a densely populated area with sufficient ▪ Highly competitive as a retail property with sufficient parking facilities and bicycle parking spaces parking facilities and rectangular shape of the building

Address 3-9-19, Nishi-Kasai, Edogawa-ku, Tokyo Address 5-6-17, Ibuki-no, Izumi, Osaka Land area 20,063.51 (the entire property) Land area 9,712.37 Floor area 38,454.66 Floor area 6,891.87 Structure Store RC 5F Parking SRC 6F Office SRC 5F Structure S 3F Occupancy rate Occupancy rate 100% (1) 100% (1) (number of tenants) (number of tenants) Completion November 1982 May 1983 April 1983 Completion October 2008 Details on Each Property (Hotels) 59

11 Hotel Sunroute Niigata Hotel 12 Daiwa Roynet Hotel Akita Hotel

Acquisition Acquisition Price 2,108 million yen Price 2,042 million yen Appraisal NOI Appraisal NOI yield 6.4 % yield 5.9 %

 Highly convenient location, 4 minutes’ walk from JR Niigata Station. The business and commercial center in  Situated in the middle of commercial area around JR Akita Station, Kawabata Street which is the busiest Niigata city has shifted to the commercial area in front of the station where the property is located, allowing street in the Prefecture, and Sanno, which extends over the area surrounding the Prefectural Government the property to capture demand not only from tourists but also from business travelers Office Building and the Townhall, the hotel is able to capture both business and leisure demand.

 The hotel operator Sotetsu Hotel Management (former Sunroute Co., Ltd.) is a subsidiary of Sotetsu  Tenant Daiwa Royal Co., Ltd. is a subsidiary of Daiwa House Industry Co., Ltd., and operates 45 business Holdings, Inc. and is highly reliable and stable. The Sunroute Hotel Chain consists of 71 hotels in Japan hotels under the Daiwa Roynet brand throughout Japan (as of the end of November 2017), and reliability and Taiwan (17 hotels under direct management and 54 franchise hotels) (as of the end of May 2017), and and stability in terms of hotel operation is generally high. MIRAI concluded a building lease agreement possesses a high level of hotel operating expertise. ending June 2026 with Daiwa Royal Co., Ltd., and stable revenue is expected.

Address 1-11-25, Higashi-Odori, Chuo-ku, Niigata, Niigata Address 2-2-41, Omachi, Akita, Akita Land area 1,402.51 Land area 1,540.15 Floor area 8,255.81 Floor area 7,439.36 Structure S/RC/SRC B1F/14F Structure S 14F Number of rooms 231 Number of rooms 221 Occupancy rate Occupancy rate 94.6% (1) 100% (1) (number of tenants) (number of tenants) Completion August 1992 Completion June 2006 Details on Each Property (Hotels) 60

13 Super Hotel Sendai Hirose-dori Hotel 14 Super Hotel Osaka Tennoji Hotel

Acquisition Acquisition Price 1,280 million yen Price 1,260 million yen Appraisal NOI Appraisal NOI yield 5.9 % yield 5.4 %

 Located 1 minute walk from Sendai Municipal Subway Hirose Dori Station, the location is  Highly convenient location, 6 minutes’ walk from Osaka Municipal Subway Tennoji Station superb for a business hotel, near Sendai’s Ichibancho retail district, the Kokubuncho and 8 minutes’ walk from JR Tennoji Station. Tennoji / Abeno has many mid size office entertainment district, the Higashi Nibancho Dori business district, and the north Kotodai buildings and shopping streets and undergoing dramatic development, with redevelopment Koen government office district. projects such as Abeno Harukas and Abeno CUES TOWN.  MIRAI concluded a fixed-term building lease agreement ending in April 2027 with SUPER  MIRAI concluded a fixed-term building lease agreement ending in February 2024 with HOTEL Co., Ltd., one of the largest business hotels chains in Japan which operates 125 SUPER HOTEL Co., Ltd., and stable revenue is expected. hotels in Japan and 3 hotels overseas (as of the end of November 2017), and stable revenue is expected.

Address 2-9-23, Chuo, Aoba-ku, Sendai, Miyagi Address 2-3-3, Osaka, Tennoji-ku, Osaka, Osaka Land area 549.10 Land area 490.65 Floor area 3,251.77 Floor area 2,486.39 Structure RC 10F Structure RC 9F Number of rooms 180 Number of rooms 124 Occupancy rate Occupancy rate 100% (1) 100% (1) (number of tenants) (number of tenants) Completion January 2007 Completion January 2004 Details on Each Property (Hotels) 61

15 Super Hotel Saitama Omiya Hotel 16 Super Hotel Kyoto Karasumagojo Hotel

Acquisition Acquisition Price 1,123 million yen Price 1,030 million yen Appraisal NOI Appraisal NOI yield 5.4 % yield 5.4 %

 Located 9 minutes’ walk from JR Omiya Station, near convention hall and theater facilities such as Omiya  Favorable location, around 1 minute walk from Kyoto Municipal Subway Gojo Station. The Sonic City and JACK Omiya as well as department stores, electronics retailers and other stores. The Shijo-karasuma and Gojo-karasuma area, the business area around the Shijo-karasuma property is a 10 minute-drive from Saitama Shintoshin, home to Saitama Super Arena. In addition to intersection, is a key financial district in western Japan and home to many banks and demand from business travelers, demand from those attending conferences, academic gatherings, brokerage firms. Located in Kyoto’s financial and business district where many leading concerts and other events, demand from those opening stores in neighboring retail facilities can also be expected. companies have their head offices or branch offices, the hotel is very convenient for business travelers.  MIRAI concluded a fixed-term building lease agreement ending in October 2026 with SUPER HOTEL Co., Ltd., and stable revenue is expected.  MIRAI concluded a fixed-term building lease agreement ending in February 2024 with SUPER HOTEL Co., Ltd., and stable revenue is expected.

Address 1-12-6, Sakuragi-cho, Omiya-ku, Saitama, Saitama 396-3, Osaka-cho, Gojo-sagaru, Karasuma-dori, Shimogyo-ku, Kyoto, Address Land area 597.25 Kyoto Floor area 2,946.55 Land area 337.23 Structure RC 10F Floor area 2,144.02 Number of rooms 157 Structure RC 10F Occupancy rate Number of rooms 108 100% (1) (number of tenants) Occupancy rate 100% 1 Completion July 2006 (number of tenants) Completion January 2004 Details on Each Property (Hotel/Retail) 62

Growth 17 Comfort Hotel Shin-Yamaguchi Hotel 18 Nara Heijo Plaza Retail

Acquisition Acquisition Price 902 million yen Price (Note1) 4,100 million yen Appraisal NOI Appraisal NOI yield 5.7 % yield (Note2) 8.7 %

 2 minutes’ walk from JR Shin-Yamaguchi Station, the hotel is expected to enjoy stable demand with its  Tourism-oriented retail property which is scheduled to be reopened in April, 2018 convenient location that serves as a starting point for business trips to other parts of the prefecture. The  The GK (limited liability company) formed by Yamaki Co., Ltd., a retail property revitalization expert, has entered into master hotel has little competition, as there are few facilities belonging to major hotel chains in the area and this is lease agreement, and revitalization project is in progress toward the renewal opening the only one belonging to a foreign hotel chain.  This property is located within a 12-minute walk and a 5-minute drive by bus from Shin-Omiya Station of the Kintetsu  The tenant Greens Co., Ltd. operates 53 franchise hotels across Japan under the Comfort Hotel brand of Railway. It faces the main national roads No. 24 and 369 (Omiya Street). The national roads run in four directions, and they American hotel franchisor Choice Hotels International, Inc., which franchises more than 6,300 hotels in 35 are main access roads to Osaka and Kyoto. Accordingly, it is expected to attract many customers from a widespread area countries worldwide (as of the end of June 2017).  Omiya Street (Hanna Road), which is adjacent to the property connects the Nara park area which has many temples and  MIRAI concluded a fixed-term building lease agreement ending in August 2027 with Greens Co., Ltd., and shrines registered as World Heritage Site to the former site of Heijo Palace. The local government is undertaking a large- stable revenue is expected. scale improvement project Address 1255-1, Shimogou, Ogori, Yamaguchi, Yamaguchi Land area 754.06 Address 1-3-1, Nijo-Oji-Minami, Nara-shi, Nara Floor area 2,999.01 Land area 53,214.66 Structure S 8F Floor area 72,944.41 Department store 4,543.32 Parking spece) Number of rooms 139 Structure SRC 7F S 3F Occupancy rate Occupancy rate 100% (1) 100% 1 Note3 (number of tenants) (number of tenants) Completion August 2007 Completion September 1989 June 2003

Note1: The acquisition price of this property is 4,100 million yen. However, an additional investment is planned for the renovation of the facility after the acquisition by MIRAI, and the total investment including the additional investment is estimated to be 5,050 million yen. Note2: The value is calculated by dividing the appraisal NOI by the acquisition price, rounded to the nearest tenth and is different from the actual performance of the 3rd FP. The yield is the value obtained when the acquisition price is set at 5,050 million yen in consideration of renovation. The yield on the initial acquisition price is 11.0% for the appraisal NOI yield. Note3: The ratio is calculated based on master lease agreement with GK Nara Heijo Plaza. The master lessee has entered into lease contracts with multiple end tenants. Portfolio PML / Average Property Age(as of October 31, 2017) 63

Portfolio PML 2.8% Average property age Note1 21.4 years ※J-REITs Ave. 2.9% Note 2 ※J-REITs Ave. 17.3 years Note1

Hillcoat Higashi- Acquisition 5 6.1% Property Service Shinjuku Price Property Name Age Life Shinjuku Eastside million 2.3% year year 3 Square yen

1. Shinagawa Seaside Parktower 32,000 15.1 67 10.2% 8 AEON Kasai 2. Kawasaki Tech Center 23,182 29.7 65 4 Tokyo Front Terrace 3.0% 3. Shinjuku Eastside Square 10,000 5.6 68 Shinagawa Seaside 1 3.1% Daiwa Roynet Hotel Parktower 4.7% 4. Tokyo Front Terrace 11 Akita 10,592 25.4 67 7 Shibuya World East Building 5. Hillcoat Higashi-Shinjuku 3,900 30.3 60 9.1% Super Hotel Sendai 6. MIUMIU Kobe (land) 6,300 Note3 Note 3 12 5.9% Hirose-dori 7. Shibuya World East Building 3,200 33.0 67 10 Hotel Sunroute Niigata 7.7% 8. AEON Kasai 9,420 34.9 60 16 Comfort Hotel Shin-Yamaguchi Super Hotel Saitama 14 5.3% 9. Daiki Izumi-Chuo 3,000 9.1 65 7.7% Omiya 2 Kawasaki Tech Center 2.6% 10. Hotel Sunroute Niigata 2,108 25.2 65

11. Daiwa Roynet Hotel Akita 2,042 11.4 60

12. Super Hotel Sendai Hirose-dori 1,280 10.8 50

Super Hotel Kyoto 13. Super Hotel Osaka Tennoji 1,260 13.8 60 15 Karasumagojo 13.1% 6 MIUMIU Kobe (land) -% 14. Super Hotel Saitama Omiya 1,123 11.3 60

9 Daiki Izumi-Chuo 14.0% 15. Super Hotel Kyoto Karasumagojo 1,030 13.8 60 Super Hotel Osaka 13 14.3% Tennoji 16. Comfort Hotel Shin-Yamaguchi 902 10.2 65 17 Nara Heijo Plaza 9.9% 17. Nara Heijo Plaza 4,100 28.2 65 Note1: Average property age is weighted averages based on acquisition price excluding MIUMIU Kobe (land). Note2: The figure is compiled by the Asset Management Company based on available disclosure materials of each REITs and may not be accurate. Note3: The building was acquired on Nov. 9, 2017. Its age as a standalone property is 0.3 years, its service life is 65 years, and the average property age of the entire portfolio including MIUMIU Kobe (building) is 20.3 years. MEMO 64 MEMO 65 MEMO 66 本文ページ

Disclaimer 67

Monetary amounts are rounded down to millions or thousands of yen. Percentage figures are rounded off to the first decimal place. This material contains forward-looking business results, plans, and management targets and strategies. Such forward-looking statements are based on current assumptions and conditions, including those regarding anticipated future developments and business environmental trends, and these assumptions and conditions may not always be correct. Such forward-looking statements assume the investment policy of MIRAI, the market environment, interest rate conditions, business practices and other fact relationships and applicable laws and regulations as of the date this material was published and they do not reflect or take into consideration any change in circumstances occurring after such date. Forward-looking statements involve known and unknown risks, uncertainties and other factors, whether express or implied, and the actual performance, operating results, financial situation and other results of MIRAI may vary significantly due to a variety of factors. This material is provided for your information and does not constitute a solicitation to buy the investment securities of MIRAI or to conclude any other financial instrument transaction contract. In making investments, investors should do so based on judgements and responsibilities of their own. The investment units of MIRAI are closed-end fund investment units, whereby investment units are not redeemable at the request of investors. Investors wishing to liquidate their investment units will in principle need to sell them to third parties. The market value of the investment units will be influenced by investor supply and demand at securities exchanges and will fluctuate in accordance with the situation for interest rates, economic circumstances, real estate prices, and other market factors. It is therefore possible that investors will not be able to sell the investment units at their acquisition price and, as a result, may suffer losses. MIRAI plans to make cash distributions to investors, but whether or not distributions are made and the amount of distributions thereof are not guaranteed under any circumstances. Gains or losses on the sale of real estate, losses on the disposal of fixed assets accompanying the replacement of structures, and other factors would cause fiscal-period income to vary greatly, which would result in change in amount of distribution to be made. Information provided herein does not constitute any of the disclosure documents or performance reports required by the Financial Instruments and Exchange Act or the Act on Investment Trusts and Investment Corporations or by the Securities Listing Regulations of the Tokyo Stock Exchange. This material is to be read and used at the responsibility of customers. MIRAI and related persons involved in the preparation and publication of this material will not bear any responsibility for any damage arising from the use of this material (whether for direct or indirect damage, and regardless of the cause thereof). While every effort has been made to avoid errors and omissions regarding the information presented in this material, the material has been created as an easy reference for customers, and the presented information may contain inaccuracies of misprints. MIRAI bears no responsibility for the accuracy. This material is subject to change/discontinuation without notice. MIRAI is not obliged to update or announce any of the information contained in this material (including forward-looking statements). MIRAI holds the copyrights to the information appearing in this material. Copying, altering, publishing, distributing, appropriating, or displaying this information or using it for commercial purposes without the prior approval of MIRAI is prohibited. Also, trademarks (trademarks, logos, and service marks) related to MIRAI appearing in this material are owned by MIRAI, and copying, altering, publishing, distributing, appropriating, or reproducing such trademarks or using them for commercial purposes without the permission of MIRAI is prohibited. This material may include properties which are not held by or planned to be acquired by MIRAI. This material in intended for the use of residents of Japan only. @ MIRAI Corporation. All rights reserved. Asset Manger : Mitsui & IDERA Partners Co., Ltd. -Financial Instruments Business Operator (Director of Kanto Finance Bureau (Kinsho) No.2876)