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24 th Period INVESTOR PRESENTATION Fiscal Period ended June 30, 2018

Securities Code 3227 Key Events in the Past Year (Aug. 2017 Aug. 2018) ～

May 2018 Issuance of 5th Unsecured Investment Aug, 2018 Corporation Bonds Announcement of Asset Replacement Oct. 2017 Apr. 2018 Disposition of two (yen) Matsushita IMP Bldg. Acquired A+(positive) properties Acquisition of one 85,000 Signed leasing contracts to refill approx. 2.5 Feb. 2018 credit rating from JCR rd property Oct. 2017 floors of the vacated 4 floors by Asahi Group The 3 Pubic Offering ( 1 floor concluded in Jan. 2018) (4 acquisitions/23.2 bn yen) “Twin 21” ＋ Conclusion of MOU on upward rent revision with Panasonic Jan. 2018 Corporation Five-for-one 80,000 investment unit split Aug. 2017 “Twin 21” Jul. 2018 Green lease agreement with Refinance of borrowings Panasonic Corporation (15.3 bn yen) 75,000 and reception of notice of decision to grant subsidy Apr. 2018 Sep. 2017 Partial share transfer owned by a GRESB Green Star for shareholder of the asset management company (MC-UBS share increased from 65% to 85%) 70,000 Two Consecutive Years

65,000

MidCity Unit Price

TSE REIT Index 60,000

23th 24th 25th 55,000～0 ～2017/8 2017/9 2017/10 2017/11 2017/12 2018/1 2018/2 2018/3 2018/4 2018/5 2018/6 2018/7 2018/8

Source S&P Capital IQ, from August 1, 2017 to July 31, 2018 TSE REIT： Index is indicated as a transition of a relative value under the assumption that closing price (1,705.4pt) of TSE REIT Index as of August 1, 2017 is the same as the closing price (66,000 yen) of MCUBS MidCity investment unit price on the same day. ＊ 1 1. Results Overview for the 24th Period Ended June 30, 2018

DPU of 1,684 yen beat the forecast by 19 yen

Occupancy increased from 97.0% to 98.1%

Newly acquired credit rating of A+ (positive) from JCR

Acquired 4 new properties through public offering and new borrowings

2 1. Results Overview for the 24th Period Ended June 30, 2018 DPU of 1,684 yen Beat the Forecast by 19 yen

Fiscal period ended Difference from Difference from th Jun. 30, 2018 (24 Period) previous period forecasts＊

+ 313 mn. yen + 35 mn. yen Operating revenues mn. yen 7,924 (+ 4.1%) (+ 0.4%)

+ 385 mn. yen + 28 mn. yen Operating income mn. yen 3,368 + 12.9%) (+ 0.8%) （

+ 362 mn. yen + 30 mn. yen Net income mn. yen 2,767 (+ 15.1%) (+ 1.1%)

+ 361 mn. yen + 31 mn. yen Total distributions mn. yen 2,767 (+ 15.0%) (+ 1.1%)

+ 62 yen + 19 yen Distribution per unit yen 1,684 (+ 3.8%) (+ 1.1%)

Compared to the estimates in “The 23rd Fiscal Period Summary Of Financial Results” as of February 20, 2018. Based on the investment unit split with the effective date on January 1, 2018, the comparison in distribution per unit from previous period is based on ＊ one-fifth of the actual distribution per unit (rounded down) for the previous fiscal period

3 1. Results Overview for the 24th Period Ended June 30, 2018 Profit Growth Both from Existing and New Properties

Breakdown of Net Income Changes for the 24th Period vs. the 23rd Period

(mn. yen) 77 2,767 47 19 261 43 －

2,405 Difference from the 23rd Period +362

Net income for the 23rd Properties acquired in Offices in Offices in Other Others Net income for the 24th Net income for Properties acquired＊ Offices in Offices in Other properties＊＊ Others Net income for Period ended 2018 Tokyo Area Osaka Area properties Period ended the 23rd period in 2018 Tokyo Area Osaka Area the 24th period Dec. 31, 2017 Jun. 30, 2018 ended Dec. 2017 ended Jun. 2018 NOI after Depreciation

Properties acquired: Total 23,205 mn. yen (Feb.–Mar. 2018)

USC Bldg. Yoshiyasu Kanda TOYOTA MOBILITY M-City Akasaka (quasi co-ownership Bldg. SERVICE Bldg. 1-chome Bldg. interest of approx. 54%)

In “Properties acquired in 2018”, the increase/decrease for the 46% of quasi co-ownership interest already owned by MCUBS MidCity is included. ＊ Including dividends received from SPC backed by Nagoya Lucent Tower. ＊＊ 4 1. Results Overview for the 24th Period Ended June 30, 2018 High Occupancy and A Spate of Upward Rent Revisions

(vs. 23rd Period) Tokyo Area 98.5% ↑0.1pt Occupancy and The Number of Rent Revisions at Lease Agreements （ ） ↑2.3pt Osaka Area 97.9%（ ） 98.2% 98.1% Occupancy 97.7% 97.5% 97.0%

20 19 Tokyo: 13 Tokyo: 4 Osaka: 7 17 Osaka: 8 Tokyo: 4 Other: 7 Number of Rent Revisions Osaka: 12 Other: 1 Tokyo Area Osaka Area Other ■(Those above the line:■ upward revision,■ those below the line: downward revision)

8 Tokyo: 4 Osaka: 1 Other: 3 6 5 Osaka: 6 Tokyo: 2 Osaka: 3

Osaka: 1 Osaka: 1 Osaka: 1 Tokyo: 1 Other: 1 Jun. 2016 Dec. 2016 Jun. 2017 Dec. 2017 Jun. 2018 Dec. 2018 20th 21st 22nd 23rd 24th 25th Period Period Period Period Period Period (Estimate)

The number of rent revisions for Dec. 2018 (25th Period) is based on the number of determined rent revisions as of the end of Jun. 2018. ＊ 5 1. Results Overview for the 24th Period Ended June 30, 2018 Revenue Expansion Through Internal Growth

Cube Kawasaki (Acquired in August 2015) Sasazuka Center Bldg. (Acquired in March 2017)

Rental revenue increased due to tenant replacement and upward rent Increased rental revenue by raising occupancy revision

100.0% 100.0% 100.0% 100.0% 100.0% 94.7% 13050 100.0% 13050 100.0% 91.1% 91.1% 89.6% 85.6% 73.4% 12040 80.0% 12040 80.0%

110 30 60.0% 11030 60.0%

10020 40.0% 10020 40.0%

9100 20.0% 1090 20.0% 22.7% increase from Jun. 2016 20.0% increase from Dec. 2017 ～ ～ 00 0.0% 0 0.0% Dec. 2015 Jun. 2016 Dec. 2016 Jun. 2017 Dec. 2017 Jun. 2018 Dec. 2018 Jun. 2017 Dec. 2017 Jun. 2018 Dec. 2018 19th 20th 21st 22nd 23rd 24th 25th 22nd 23rd 24th 25th Period Period Period Period Period Period Period Period Period Period Period (Estimate) (Estimate) Rent Index (Left) Rent Index (Left)

Occupancy Rate (Right) Occupancy Rate (Right)

For Dec. 2018 25th Period (Estimate), occupancy is based on lease agreement as of the end of June 2018. For rental index, Cube Kawasaki rental revenue as of the fiscal period ended June 30, 2016 is indexed to 100, and Sasazuka Center Bldg. rental revenue ＊ as of the fiscal period ending December 31, 2017 is indexed to 100, based on rental revenue (rent + common area fees) indicated in lease agreement as of the fiscal period ended June 30, 2018.

6 1. Results Overview for the 24th Period Ended June 30, 2018 Newly acquired credit rating of A+ (positive) from JCR

Issuance of Investment Co. Bonds for three consecutive Enhanced credit by obtaining new rating years in May 2018 Obtained new long-term issuer rating of A+ (positive) from Japan Issuance of investment co. bonds (The 5th Unsecured Investment Corporation Bond) on May 29, 2018 Credit Rating Agency (JCR) on April 9, 2018

2nd Co. Bonds 4th Co. Bonds 5th Co. Bonds After main sponsor change Before main (2016) (2017) (May 2018) sponsor change Oct. 2015 Apr. 2018 (As of the end of Period Oct. 2016 Term 10 years 10 years 10 years ended Dec. 31, 2014) Change in Acquired new Upgrade outlook rating Total amount 1.5 bn. yen 2.0 bn. yen 2.0 bn. yen Rating & issued Investment A- A- A Information, Inc. (Stable) (Positive) (Stable) － Interest rate 0.81 0.67 (R&I) ％ ％ 0.59％

Reference REITs’ Issuance of Co. Bonds (April to June, 2018) Japan Credit ＜ ＞ Total Rating Agency A+ Interest － － － Term amount (JCR) (Positive) Pricing Date REIT rate (years) issued ( ) (bn. yen) ％ Apr. 2018 Diversified (JCR:A) 10 1.0 0.70 Apr. 2018 Retail (JCR:A+) 10 2.0 0.70 Apr. 2018 Office (JCR:A-) 10 1.0 0.90 Apr. 2018 Diversified (JCR:A) 10 1.0 0.70 Continue to aim for further upgrade May 2018 Diversified (JCR:A) 10 1.0 0.80 May 2018 MCUBS MidCity 10 2.0 0.59 May 2018 Diversified (R&I:AA-) 10 3.0 0.55

7 2. Actions in the 25th Period

Asset replacement through disposition of two properties Acquiring one new property Reinforced financial stability through refinancing

List of Asset Replacement ＜ ＞ Planned NOI yield Assets to be Difference between Disposition Book Value Planned Disposition NOI yield after Planned Disposition Date Disposed Price Price and Book Value depreciation September 5, 2018 Matsushita IMP Bldg. (55% quasi co-ownership) bn. yen % % (Chuo-ku, Osaka) 27.0 22.4 bn. yen + 4.5 bn. Yen 4.1 1.8 March 8, 2019 (45% quasi co-ownership) MID REIT Kyobashi Bldg. － September 4, 2018 (Miyakojima-ku, Osaka) 1.7bn. yen 2.0 bn. yen 0.3 bn. Yen 3.4% 2.1%

Total/Average bn. yen bn. yen + bn. Yen % % 28.7 24.4 4.2 4.1 1.8 －

Planned NOI yield Asset to be Acquisition Appraisal Value Unrealized gain NOI yield after Planned Acquisition Date Acquired Price depreciation

Yokohama i-land Tower 22.1 bn. yen 23.7bn. yen +1.6 bn. yen 5.0% 4.0% September 14, 2018 (Naka-ku, Yokohama)

8 2. Actions in the 25th Period Executed Strategic Asset Replacement at the Best Timing

Rationale for asset replacement Improvement in Portfolio Risk Before main sponsor change Before asset replacement After asset replacement (End of Dec. 2014) (End of Jun. 2018) (Mar. 2019) Area diversification (Based on (planned) acquisition price) Other Nagoya Area Other Nagoya Area Other 1.4% 1.9% 3.0% 1.9% 3.0% Tokyo Area 16.6%

Osaka Tokyo Osaka Tokyo Area Area Area Osaka Area Area 35.9% 49.6% 59.2% 82.0% 45.5% Matsushita IMP Bldg. MID REIT Kyobashi Bldg. Tenant diversification (Based on Rent + common area fees) Ratio of the Ratio of the Ratio of the Asset value enhanced after Disposition of this asset with lower largest tenant largest tenant ■ ■ largest tenant refilling large vacant space NOI yield after depreciation would 21.2% 12.6% 12.9% bring effective improvement in Brisk real estate trading market portfolio profitability ■ offered an opportunity for favorable Disposition price was higher than ■ disposition appraisal value, whereas the disposition Ratio of Ratio of Ratio of OBP losses can be offset by gains from OBP OBP 28.3% Matsushita IMP Bldg. 62.4% 38.4%

Portfolio unrealized gain/loss (ratio)* % ＋2.9 1.9% 0.2% ＋ －2.2% ＋ Before main sponsor change －7.3%

0.4bn. yen 4.7bn. yen bn. yen ＋ ＋ ＋7.0 4.8bn. yen 1 2 3 － －20.9% Improvement in Enhancement in Strategic 15.0bn. yen Improvement in unrealized gain/loss － between Dec. 2014 to after asset replacement Portfolio Utilization of Gain bn. yen Portfolio Risk bn. yen 39.0 －32.0 Profitability on Disposition Dec. 2014 Dec. 2016 Jun. 2017 Dec. 2017 Jun. 2018 After asset (17th Period) (21st Period) (22nd Period) (23rd Period) (24th Period) replacement

“Unrealized gain/loss” refers to the sum of difference between appraisal value and book value of each portfolio property as of the end of each period. The “unrealized gain” after asset replacement is the sum of total unrealized gain for the entire portfolio properties ＊ as of the end of the 24th Period (excluding assets to be disposed) and the unrealized gain on the asset to be acquired. “Unrealized gain/loss ratio” refers to the ratio of total unrealized gain/loss for the entire portfolio properties to the total book value of the entire portfolio properties as at the end of each period. The same shall apply hereafter.

9 2. Actions in the 25th Period Unitholder Value Enhanced through Asset Replacement

Enhancement in Portfolio Profitability Strategic Utilization of Disposition Gains Unitholder return and accumulation of internal reserves ～ ～ Fiscal Period Scheduled to dispose Matsushita IMP Bldg. in two parts. Gain on Fiscal Period Assets to be Asset to be ended After Asset disposition to be partly paid out as distribution and partly retained for ended Disposed Acquired Dec. 31, 2014 Replacement Before main sponsor Jun. 30, 2018 (2 properties) (1 property) future stable distribution change Average Fiscal period ending Dec. 31, 2018 Fiscal period ending Jun. 30, 2019 4.1% 5.0% (25th Period) (26th Period) NOI yield 4.0% 4.3% 4.4% Disposition Total Matsushita MID REIT Total Matsushita IMP Bldg. IMP Bldg. Kyobashi Bldg. NOI yield bn. 12.15 bn. (45% quasi co-ownership) 2.6% 3.2% 1.8% 4.0% % 16.55 (55% quasi co- After depreciation 3.5 yen ownership) yen Planned Planned 12.15 bn. yen disposition price 14.85 bn. yen 1.7 bn. yen disposition price

Planning distribution Gains/Losses Gains on sale +1.9 bn. yen on sale +2.2 bn. yen -0.4 bn. yen NOI Yield After depreciation Total

Office Retail facilities Hotel gains the of Total gains on sales bn. yen Total gains on sales bn. Yen bn. yen Asset to be acquired Assets to be disposed ＋1.8 ＋1.9 ＋3.8 7.0% Payout as distributions bn. yen Payout as distributions bn. Yen bn. yen AEON MALL Sendai 1.3 1.5 2.9 Higashi-Nihombashi Tsudanuma Capital 6.0% Green Bldg Yoshiyasu Tower Reserve for reduction entry 0.4 bn. yen Reserve for reduction entry 0.4 bn. Yen bn. yen Yokohama 0.8 Kanda Creation Bldg. Square Konami Sports Club Dormy Inn 5.0% Cube Kawasaki Kyobashi Hakata Gion

Yokohama Kitahama Asset to be Acquired Sasazuka Policy for Using the Reserve for Reduction Entry 4.0% i-land MID Bldg. Higobashi Center Bldg. MID Bldg. 4.0% USC Tower Use to carry out a stable distribution in event of temporary decrease in resource Bldg. 3.0% for distributable income in the future G-Square Twin 21 % MID 2.2 Shibuya Shibuya Sakuragaoka Imabashi For securing stability Dogenzaka Assets to be Disposed ＜ ＞ 2.0% Square TOYOTA Bldg. Temporary decrease of revenue due to cancellation of major tenant Matsushita ・ MOBILITY MID IMP Bldg. Loss on sale of real estate Sumitomo Nishihommachi 1.8% SERVICE Bldg. ・ 1.0% Fudosan Bldg. Temporary expense due to natural disaster etc. Ueno Bldg. M-City MID REIT ・ No.6 Akasaka Kyobashi 1-chome Bldg. Bldg. For growth strategy 0.0% ＜ Losses due to growth＞ investments such as large-scale renovation and reconstruction 0 1 2 3 4 5 6 7 8 9 10 11 ・ Tokyo東京圏 Area Osaka大阪圏 Area その他Others Temporary distribution dilution associated with offering during the fiscal period ・

Calculation based on actual figures for propertiesheld as of the end of June 2018, and figure indicated on the appraisal report for the asset to be acquired ＊ Size of each bubble is proportional to each acquisition price ＊＊

10 2. Actions in the 25th Period New Acquisition: Yokohama i-land Tower

Acquisition of one of the largest high-rise buildings in the area with direct connection to “Bashamichi Station” through a PRE proposal

1 Location with traffic convenience High-rise building directly connected to the station, situated at a cross-point of the Minato Mirai 21 ▶ area and the Kannai area Located in an area with high growth potential as several redevelopment plans are under way in the ▶ neighborhood 2 One of the largest-sized office buildings in the area Large-sized office building with total floor area of approximately 12,500 tsubo and standard floor area ▶ of approximately 320 tsubo, standing out in the area mainly filled with small- and medium-sized buildings and drawing potential tenants 3 Acquisition through PRE proposal for the first time for MCUBS MidCity, and stable relation with tenants Acquisition through PRE proposalby use of capability of the sponsor of MC-UBS Group ▶ Estimated steady rent income based on the long-term lease agreement with UR, the main tenant ▶ “PRE proposal” indicates a proposal of optimal and efficient use of public real estate (PRE) properties, with an aim to promote proper and efficient management and operation thereof based on the public interest purposes.

Asset to be Acquisition Price 22,100 mn. yen Appraised Value 23,700 mn. yen acquired (high-rise bldg.) NOI Yield after NOI Yield 5.0% 4.0% Depreciation Japan Railway 27F Yokohama New City Hall Building: Completion due in Jan. 2020 Construction, 32F/B2F, Approx. 6,000 employees Location 6-50-1 Honcho, Naka-ku, Yokohama, Kanagawa Transport and （ ） Technology Direct connection to “Bashamichi Station” on the Minatomirai Line 19F Agency Access Approx. 5-minute walk from “Sakuragi-cho Station” and “Kannai 17F Yokohama City Station” on the JR/Yokohama Municipal Subway 16F Urban Total floor area 41,154.75 Completion date Feb. 2003 Renaissance Sakuragi-cho ㎡ Station Not acquired Agency Number of tenants 5 Occupancy 94.0% (low-rise bldg.) 5F

Yokohama i-land Tower Bashamichi Station

As the property is a sectional ownership building, MCUBS MidCity is to obtain trust beneficiary interest of building’s sectional ownership (ratio of entire common area ownership: 93.41476 , ＊partial high-rise common area ownership: 100%) and common area ownership of its land (ratio of co- owner ship: 89.57%) ％

11 2. Actions in the 25th Period Consistent Selected Investment Utilizing MidCity’s Advantage

MidCity’s first ever PRE Proposal Unique Strategy based on Asset Information Network

Initiatives for Yokohama i-land Tower acquisition Acquisition Capability with Asset Value Enhancement through A bid deal of UR’s sale and lease-back Competitive Advantage Management ▶ Our PRE proposals was accepted favorable at a comprehensive evaluation bid ▶ Sourcing Phase Acquisition Phase Management Phase of price and proposal

MidCity’s Advantage MidCity’s 1 2 3 4 Information Proposal Formation Management

• Information network • Proposals which • Reliable optimum • Capture future upside Key Contents of our Proposal of MC-UBS Group with utilize the acquisition including potential and achieve • Area management proposal by collaborating with Mitsubishi Corporation Group the largest J-REIT AUM uniqueness of CRE/ formation of bridge steady profitability PRE proposals with funds, given MC-UBS improvement • Management structure of large-scale building based on management track record in “Osaka Business the strong Group’s high Park” area management credibility structure of MC-UBS • Introduction of security system such as installation of entrance gate Group • Improvement of common area such as installation of LED light and stockpile warehouse rack

Area Management Plan Aiming＜ for sustainable area＞ activation, plan to enhance the area’s attractiveness and popularity by collaborating with adjacent Yokohama New Town Hall and increase migration of “Kitanaka-dori Exclusive Negotiation CRE Proposal/PRE Proposal TK Investment North/ Shinminato” area by making full use of Mitsubishi Corporation’s network Key Properties Key

Shibuya TOYOTA MOBILITY Yokoyama Nagoya Sakuragaoka Square SERVICE Bldg. i-land Tower Lucent Tower

Historical monument Yokohama i-land Tower Low-rise Building ～ ～ Low-rise building of the former Bank of Yokohama head office annex is a historical building acknowledged by Yokohama City. Building was built as The First Bank Yokohama Branch, constructed by Yoshitoki Nishimura in 1929, characterized by Tuscan order colonnade and a semi-circular balcony. Currently, it is occupied by Yokohama Creative City Center as a base facility of “Creative City Initiative” promoted by Yokohama City. Building is not subject of sectional ownership of planned acquisition. ＊

12 2. Actions in the 25th Period Successfully Financing Long-term Fixed Rate Debts

Financial Indicators New Borrowings (Jul. and Sep. 2018)

Sep. 2018 Lender (New borrowings in Jul. 2018) Amount Term Interest rate 24th Period (Estimate) Mizuho Bank, Ltd. 3.4 bn. yen 10 years Fixed

Ratio of long-term Aozora Bank, Ltd., Mizuho Trust & Banking Co., Ltd. 1.5 bn. yen 10 years Fixed % % borrowings 100.0 94.4 Sumitomo Mitsui Trust Bank, Limited 2.9 bn. yen 8 years Fixed

Ratio of fixed-rate MUFG Bank, Ltd. 2.0 bn. yen 8 years Fixed 77.5% 79.3% borrowings Resona Bank, Limited 0.8 bn. yen 8 years Fixed

The Senshu Ikeda Bank, Ltd., The Nishi-Nippon City 1.8 bn. yen 7 years Fixed R&I: A (stable) Aim for further Bank. Ltd., The Hyakugo Bank, Ltd. Issuer rating JCR: A+ (positive) upgrade Sumitomo Mitsui Banking Corporation 2.9 bn. yen 4.5 years Floating

Total / Weighted average 15.3 bn. yen 7.9 years

Lender (New borrowing in Sep. 2018) Amount Term Interest rate Debt Maturity Ladder New borrowing in Sep. 2018 (Planned) New borrowings in Jul. 2018 Existing loans Invest Co. bonds Mizuho Bank, Ltd. 6.9 bn. yen 0.6 years Floating ■ ■ ■ ■ 15.3 bn. yen 15.2 bn. yen 14.3 bn. yen

Available commitment line facility 15.0 bn. yen

8.55bn. yen 8.95bn. yen 5.9bn. yen 6.9bn. yen bn. yen 5.3 bn. yen 2.9 1.8bn. yen 5.7bn. yen 4.0bn. yen 4.9bn. yen 4.7bn. yen 4.9bn. yen 2.7bn. yen 4.0bn. yen 3.9bn. yen 3.9bn. yen 3.975bn. yen 2.0bn. yen 2.0bn. yen 2.4bn. yen 1.5bn. yen 1.0bn. yen 1.5bn. yen Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. 2018 2019 2019 2020 2020 2021 2021 2022 2022 2023 2023 2024 2024 2025 2025 2026 2026 2027 2027 2028 2028 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th 35th 36th 37th 38th 39th 40th 41st 42nd 43rd 44th 45th Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period

13 2. Actions in the 25th Period Reinforcing Financial Base

Financing Cost and Average Remaining Years of Debts Historical LTV

Total assets Interest-bearing debt Average remaining years Financing cost＊ Market LTV (based on appraisal value) LTV (based on book value)

(bn. yen)

272.6 4.1years 271.0 1.38% 47.7% 1.36% 47.3% 248.8 248.8 3.5years 46.6% 3.4years 227.6 225.9 3.2years 1.22% 3.1years 226.0 44.6% 45.8% 1.18% 1.17% 174.1 43.0% 168.8 42.2% 42.5% 42.8% 2.3years 1.09% 42.0% 2.8years 1.06% 41.7% 41.7% 1.8years 1.01% 42.2% 42.1% 41.8% 2.7years 0.99% 41.7% 38.9% 115.9 115.9 38.7% 104.9 104.9 94.3 95.7 94.1

65.3 67.6

Dec. 2014 Jun. 2015 Dec. 2015 Jun. 2016 Dec. 2016 Jun.2017 Dec. 2017 Jun. 2018 Sep. 2018 Dec. 2014 Jun. 2015 Dec. 2015 Jun. 2016 Dec. 2016 Jun.2017 Dec. 2017 Jun. 2018 Mar. 2019 2014年 2015年 2015年 2016年 2016年 2017年 2017年 2018年 2018年 th th th th st nd rd th 17th 18th 19th 20th 21st 22nd 23rd 24th 17 18 19 20 21 22 23 24 12月期 6月期 12月期 6月期 12月期 6月期 12月期 6月期 Estimate9月 Estimate Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period (第17期) (第18期) (第19期) (第20期) (第21期) (第22期) (第23期) (第24期) 見込み

All-in cost including related expenses ＊ 14 2. Actions in the 25th Period Forecasts for Periods Ending Dec. 2018 and Jun. 2019

Forecast for fiscal period Forecast for fiscal period Difference from Difference from ending Dec. 31, 2018 ending Jun. 30, 2019 24th Period 25th Period (25th Period) (26th Period)

10,780 mn. yen 10,205 mn. yen Operating revenues +36.0% －5.3% (Gain on disposition of assets) (2,263 mn. yen) (1,985 mn. yen)

5,281 mn. yen 5,480 mn. yen Operating income +56.8% +3.8% (Gain/loss on disposition of assets) (1,829 mn. yen) (1,985 mn. yen)

Net income 4,576 mn. yen +65.4% 4,839 mn. yen +5.7%

Reserves for reduction 434 mn. yen 459 mn. yen +5.7% entry －

Total distributions 4,140 mn. yen +49.6% 4,378 mn. yen +5.8%

2,520 yen 2,665 yen Distribution per unit +49.6% +5.8% (Excl. gain on dispositions) (1,755 yen) (1,821 yen)

15 2. Actions in the 25th Period Profit Growth Generated Both from New and Existing Assets

Breakdown of Forecasted Net Income Changes for the 25th and 26th Fiscal Periods

(mn. yen) (mn. yen) Forecast for the 25th Period Ending Dec. 2018 Forecast for the 26th Period Ending Jun. 2019 155 4,839 165 34 26 Reserve for 1,829 4,576 4,576 reduction entry 103 459 mn. yen Reserve for 16 － reduction － 184 entry Total 43 434 mn. yen distributions 147 4,378 mn. yen Total 116 2,767 － distributions 4,140 mn. yen 280 ～ － +1,808 +262 vs. 24th vs. 25th Period Period

Forecasted Forecasted net Net income for Net income for ＊ Properties Property to be net income for Properties Property to be income for the ～th ＊ ～ ～th ～ the～ 24 Period Assets to be Existing Other Gain/Loss on ～th the～ 25 Period Assets to be Existing Other Gain/Loss on ～th acquired in acquired in the 25 Period acquired in acquired in 26 Period ended Jun. 30, disposed properties * properties disposition ending Dec. 31, disposed properties* properties disposition 24th Period 25th Period ending Dec. 31, 24th Period 25th Period ending Jun. 30, 2018 2018 2018 2019

NOI after Depreciation NOI after Depreciation

Gain on disposition of Full period contribution Matsushita IMP Bldg. and Taxes and public dues Lack of loss on of the four newly Full period contribution of loss on disposition of MID compared to previous period disposal of MID REIT acquired properties Yokohama i-land Tower REIT Kyobashi Bldg. +24 mn. yen Kyobashi Bldg.

Including dividends received from SPC backed by Nagoya Lucent Tower ＊ 16 3. Initiatives for Enhancement of Unitholder Value

Unitholder value enhanced after implementing various measures after main sponsor change

Drastically increased DPU/NAV

Strive to further enhance unitholder value

17 3. Initiatives for Enhancement of Unitholder Value Unitholder Value Expanded after Main Sponsor Change

Asset Profitability and stability enhanced through portfolio expansion Debt Successfully established strong financial base

After asset After asset Before main sponsor change replacement Before main sponsor change replacement

Number of Properties 12 properties 22 properties LTV (appraisal basis) 47.7% 41.7%

Average Interest- Asset Size 157.6bn. yen 256.5 bn. yen bearing Debt Cost 1.38% 0.99% (Acquisition price basis) (estimate as of Sept. 2018) Average Remaining Average NOI Yield 4.0% 4.4% Interest-bearing 2.3 years 4.1 years Debt Maturity (estimate as of Sept. 2018)

Average NOI Yield R&I (stable) Credit Ratings ：A after Depreciation 2.6% 3.5% R&I A- ： JCR (positive) ：A +

Unrealized Gains/Losses 32.0 bn. yen 7.0 bn. yen － ＋ Equity Unitholder value enhanced

After asset Ratio of OBP % % Before main sponsor change replacement (based on rents and common-area fees) 62.4 28.3

Market Cap 53.6 bn. yen 135.0 bn. yen Ratio of Largest Tenant % % (April 10, 2015) (July 31, 2018) (based on rents and common-area fees) 21.2 12.9

DPU 1,821 yen 1,191 yen (forecast for fiscal period ending Jun. 30, 2019, stabilized basis) ESG Active efforts toward sustainability NAV per Unit After asset 63,504 yen 87,361 yen Before main sponsor change replacement Average Trading GRESB Green Star 300 mn. yen 429 mn. yen － Volume per Day (Average of Jul. 1, 2014 (Average of Jan. 1, 2018- Dec. 31, 2014)～ Jun. 30, 2018)

18 3. Initiatives for Enhancement of Unitholder Value Consistent Selected Investment and Strategic Asset Replacement

After main sponsor change New Acquisition Dispositions

Acquisition of 4 Asset Size properties Acquisition of (acquisition price basis) 136.0 bn. yen 37.1 bn. yen 4 (Incl. 1 additional Acquisition of 1 properties acquisition) property (Incl. 1 additional acquisition) 23.2bn. yen 22.1bn. yen Number of properties 14 properties 4 properties Market Cap. 31.3bn. yen 135.0bn. yen Disposition of 2 3rd Public Offering properties Disposition of July 31, 2018 Average NOI yield 2 February 2018 properties 26.9bn. yen 300.0bn. yen 3.7% 2.0% (Based on after depreciation bn. yen 10.2 acquisition price) (Based on acquisition price) Total unrealized gain/loss 11.9 bn. yen 2.1 bn. yen ＋ － 2nd Public Offering February 2017

Asset acquired after ■ main sponsor change Acquisition of 1 Acquisition of 6 Asset acquired before property properties ■ main sponsor change 7.4bn. yen 51.9bn. yen Market cap ■ 1st Public Offering July 2015

Market Cap. 53.6bn. yen April 10, 2015

Jun. 2018 Asset size after asset Dec. 2017 (24th Period) replacement Jun. 2017 (23rd Period) Dec. 2016 nd (22 Period) bn. yen Jun. 2016 (21st Period) 261.3 bn. yen Dec. 2015 th bn. yen 256.5 (20 Period) bn. yen 238.1 Jun. 2015 (19th Period) 238.1 th bn. yen Dec. 2014 (18 Period) bn. yen 217.1 th 217.1 (17 Period) 217.1bn. yen 165.1bn. yen 157.6bn. yen Before main sponsor change “Average NOI yield after depreciation” and “Total unrealized gain/loss” do not include Nagoya Lucent Tower (silent partnership interest) . ＊ 19 3. Initiatives for Enhancement of Unitholder Value Consistent DPU/NAV Growth

Distribution per unit NAV per unit

2,665yen DPU growth +41.3% 2,520yen NAV per unit growth +35.3% (17th Period vs. 24th Period) 844yen (17th Period vs. 24th Period) Gains on sale, 765yen etc. 87,361yen Gains on sale, etc. 85,938yen 84,661yen

yen 81,087yen 1,684yen ～1,821 Excl. Gains on 1,622yen 1,755yen ～ sales, etc. 1,580yen ～ 75,319yen Excl. Gains on sales, etc. 72,690yen 1,456yen 1,486yen 1,420yen Before main 68,970yen sponsor change 64,356yen yen Before main 1,288yen 63,504 sponsor change 1,191yen

Dec. 2014 Jun. 2015 Dec. 2015 Jun. 2016 Dec. 2016 Jun.2017 Dec. 2017 Jun. 2018 Dec. 2018 Jun. 2019 Dec. 2014年 Jun. 2015年 Dec. 2015年 Jun. 2016年 Dec. 2016年 Jun.2017年 Dec. 2017年 Jun. 2018年 本入替後 2014月期 2015月期 2015月期 2016月期 2016月期 2017月期 2017月期 2018月期 After asset 17th 18th 19th 20th 21st 22nd 23rd 24th 25th Period 26th Period 12第17th期 第618th期 12第19th期 第620th期 12第21st期 第622nd期 12第23rd期 第624th期 replacement Period Period Period Period Period Period Period Period Estimate Estimate Period17 Period18 Period19 Period20 Period21 Period22 Period23 Period24

20 3. Initiatives for Enhancement of Unitholder Value Active Efforts Towards ESG

Assessment/ Certification by External Agencies MC-UBS Group: Sustainability Policy

The Investment Corporation is designated as Green Star by GRESB MC-UBS Group voluntarily promotes efforts to secure Real Estate Assessment, and obtains certifications for properties in “sustainability” in an environment and an entire society. the portfolio.

 Environmental charter  Responsible Property Investment (RPI) Policy  The Principles for Financial Action Towards a Sustainable Society (Principles for Financial Action for the 21st Century)  The Principles for Responsible Investment (PRI)  Montreal Carbon Pledge  The United Nations Environment Programme Finance Initiative (UNEP FI)  The United Nations Global Compact (UN Global Compact)  Japan Association for UNHCR

Items written in green: initiatives implemented by MCUBS MidCity

BELS Certification CASBEE assessment DBJ Green Building Certified for 3 properties Certified for 2 properties Certified for 4 properties

21 Memo

22 Disclaimer

• This material main contain forward-looking statements regarding results, plans, managerial targets and strategies. These forward-looking statements are based on current assumptions and preconditions for future events and trends of business circumstances, which are not necessarily correct. Actual results may vary widely from such statements according to various factors

• This material is prepared subject to the accounting principles generally accepted in Japan, unless otherwise stated

• This material is about analyses of financial results of MCUBS MidCity Investment Corporation (the “Investment Corporation”), and is not prepared for the purpose of inducement or invitation for any acquisition of investment securities of the Investment Corporation nor any execution of other financial transaction contracts. Investment decisions are to be made at investors’ sole discretion and responsibility

• The Investment Corporation is a publicly-offered real estate investment corporation (J-REIT) investing in real estate and related assets the prices of which may fluctuate. Unitholders of the Investment Corporation may suffer loss when unit prices decline in the market or an amount of distributions declines, according to economic and interest rate circumstances, a balance of supply and demand for units, real estate market environment, fluctuations of prices of, and rent revenues from real estate properties under management, disasters, aggravation of financial status of the Investment Corporation and other reasons. For detail, please see “Investment Risk” stated in the Securities Registration Statement (offering circular) and the Securities Report of the Investment Corporation. Asset Management Company: MCUBS MidCity Inc. (Certified Financial Instruments Business Operator: Director of Kanto Local Financial Bureau (Kinsho) Registration No. 2888, and Member of The Investment Trusts Association, Japan)