1 March 12, 2019 for Immediate Release Real Estate Investment

March 12, 2019 For Immediate Release

Real Estate Investment Trust Securities Issuer 1-7-2 Otemachi, Chiyoda-ku, Tokyo SANKEI REAL ESTATE Inc. Representative: Yuichi Ota, Executive Director (TSE code: 2972) Asset Management Company Sankei Building Asset Management Co., Ltd. Representative: Yuichi Ota President and Chief Executive Officer Contact: Atsushi Mukai Director and Chief Financial & IR Officer TEL: +81-3-5542-1316

Notice Concerning Completion of Acquisition of Assets

SANKEI REAL ESTATE Inc. (“SANKEI REAL ESTATE”) announces that it today completed the acquisition of real estate and trust beneficiary rights for the following 8 properties (the “Acquired Assets”) indicated in the securities registration statement submitted on February 7, 2019.

1. Overview of Acquisition Acquisition price Property Category Property name Location (millions of yen) number (Note 1) A-1 Tokyo Sankei Building (Note 2) Chiyoda-ku, Tokyo 2,509 Kita-ku, Osaka-shi, A-2 BREEZÉ TOWER (Note 2) 8,600 Osaka S-GATE NIHONBASHI-HONCHO A-3 Chuo-ku, Tokyo 6,698 Office (Note 2) buildings A-4 S-GATE AKIHABARA Chiyoda-ku, Tokyo 2,055 A-5 Hibiya Sankei Building Chiyoda-ku, Tokyo 5,829 A-6 Hatchobori Sankei Building Chuo-ku, Tokyo 4,959 A-7 Toyo Park Building Koto-ku, Tokyo 3,782 Subtotal (7 properties) ‐ 34,434 Sub assets B-1 Hotel Intergate Tokyo Kyobashi Chuo-ku, Tokyo 8,961 (Note 3) Subtotal (1 property) ‐ 8,961 Total (8 properties) ‐ 43,395 (Note 1) “Acquisition price” is the sale and purchase price of real estate and each trust beneficiary right stated in each sale and purchase agreement for asset acquisition rounded down to the nearest million yen. The sale and purchase prices do not include consumption tax, local consumption tax and the various expenses required for the acquisition. (Note 2) The acquisition price of “Tokyo Sankei Building” and “S-GATE NIHONBASHI-HONCHO” are the figures equivalent to the co-ownership interests in each property acquired by SANKEI REAL ESTATE (2% and 51%, respectively) (*1). The acquisition price of “BREEZÉ TOWER” is the figure equivalent to the quasi co-ownership interest in the sectional ownership of the office portion acquired by SANKEI REAL ESTATE (30%) (*2). (*1) As for “Tokyo Sankei Building,” SANKEI REAL ESTATE acquired 2% co-ownership interest in the ownership of the site, 2% quasi co-ownership interest in the leasehold and 2% co-ownership interest in the ownership of the building. As for “S-GATE NIHONBASHI-HONCHO,” trust beneficiary rights with 51% co-ownership interest in the ownership of the site and building as trust assets were acquired. “Co-ownership interest in each property (2% and 51%, respectively)” is used as such meaning. For details, please refer to the individual asset table of “Tokyo Sankei Building” and “S-GATE NIHONBASHI-HONCHO” in “2. Overview of Individual Properties of the Acquired Assets” below.

Disclaimer: This document is a press release for making a public announcement concerning the completion of acquisition of assets by SANKEI REAL ESTATE Inc., and has not been prepared for the purpose of solicitation for investment.

(*2) As for “BREEZÉ TOWER,” SANKEI REAL ESTATE acquired 30% quasi co-ownership interest in trust beneficiary rights with sectional ownership of the office portion and use rights of the site (ownership of the site, leasehold and mutual use rights) as trust assets. “Quasi co-ownership interest in sectional ownership (30%)” is used as such meaning. For details, please refer to the individual asset table of “BREEZÉ TOWER” in “2. Overview of Individual Properties of the Acquired Assets” below. (Note 3) “Sub assets” collectively refer to asset types that possess characteristics different from “office buildings” and which contribute to building a strong portfolio that features both revenue stability and growth capable of withstanding the cyclical real estate market (Note 4). (Note 4) “Cyclical real estate market” refers to a phenomenon showing a repeated cycle in the real estate market of a prosperous period wherein the price of real estate or occupancy rate/rent increases and a recession period wherein the price of real estate or occupancy rate/rent decreases.

(1) Date of conclusion of January 23, 2019 sale and purchase agreement (2) Acquisition date March 12, 2019 (3) Seller Please refer to “3. Overview of Seller” below (4) Funds for acquisition Proceeds from the issuance of new investment units resolved at SANKEI REAL ESTATE’s board of directors’ meeting held on February 7, 2019 and March 5, 2019 alongside borrowings (Note) (5) Settlement method Payment of full amount at the time of delivery (Note) For the said borrowings, please refer to “Notice Concerning Borrowing of Funds” announced today.

2. Overview of Individual Properties of the Acquired Assets The table below shows the overview of each Acquired Asset (the “individual asset table”). In addition, the terms used in the individual asset table are as follows. Please refer to the individual asset table together with the explanation on the terms listed below. In principle, unless otherwise noted, the status as of October 31, 2018 is indicated.

・ “Type of specified asset” indicates the type of each Acquired Asset upon acquisition. ・ “Location” indicates the residential address of each real estate. ・ “Acquisition date” indicates the acquisition date stated in each sale and purchase agreement of the Acquired Assets. ・ “Acquisition price” indicates the purchase price of real estate and trust beneficiary rights indicated in each sale and purchase agreement of the Acquired Assets (excluding consumption tax, local consumption tax and various expenses including brokerage commission, and rounded down to the nearest million yen). ・ “Overview of trust beneficiary rights” indicates the overview of the trustee, trust establishment date and trust expiration date upon the acquisition of each Acquired Asset (after the change when changes are made due to the acquisition). ・ “Site area” of the land is indicated based on the information in the registry. ・ “Use district” of the land indicates the type of use district stipulated in Article 8, Paragraph 1, Item 1 of the City Planning Act. ・ “Floor area ratio” and “Building coverage ratio” of the land indicate, in principle, the figures before the increase or decrease through easing or restrictive measures defined in accordance with related laws and regulations such as the Building Standards Act and the City Planning Act. Moreover, certain easing or restrictive measures may be applied to the “Floor area ratio” or “Building coverage ratio” in this document depending on the Acquired Asset. ・ “Type of ownership” of the land indicates the type of right for each Acquired Asset held by SANKEI REAL ESTATE (trustee of real estate trust for trust beneficiary rights in real estate). ・ “Structure and floors” of the building is indicated based on the information in the registry. ・ “Construction completion” of the building indicates the date of completion of each building indicated in the registry. If there are multiple main buildings, the date of the oldest building in the registry is indicated. ・ “Total floor area” of the building is indicated based on the information in the registry. Moreover, “Total

floor area” indicates the total floor area of main buildings and attached buildings. It indicates the total floor area of the entire building regardless of sectional ownership or quasi co-ownership. ・ “Use” of the building indicates the main use among the building type in the registry. ・ “Type of ownership” of the building indicates the type of right for each Acquired Asset held by SANKEI REAL ESTATE (trustee of real estate trust for trust beneficiary rights in real estate). ・ “Property management company” indicates the property management company with which SANKEI REAL ESTATE has concluded a property management agreement for each Acquired Asset. ・ “Master lease company” indicates the master lease company with which SANKEI REAL ESTATE has concluded a master lease agreement for each Acquired Asset. Moreover, the co-owners of some Acquired Assets may be the master lease company. ・ “Master lease type” indicates the type of master lease agreement (pass-through-type or fixed-rent-type). “Pass-through-type” indicates master lease agreements with no rent guarantee and “fixed-rent-type” indicates master lease agreements with rent guarantee. ・ “Appraisal value” is the appraisal value as of October 31, 2018 stated in each real estate appraisal report. The appraisal of the Acquired Assets is entrusted to Japan Real Estate Institute, The Tanizawa Sōgō Appraisal Co., Ltd. and Daiwa Real Estate Appraisal Co., Ltd. ・ “PML value” is indicated based on the engineering report for December 2018 prepared by Tokio Marine & Nichido Risk Consulting Co., Ltd. ・ “Number of tenants” indicates the number of tenants based on the lease agreement of each Acquired Asset as of October 31, 2018 (or as of the point of time noted separately if any). However, the total number of end tenants is indicated for the portion in the pass-through-type master lease agreement when a master lease agreement has been concluded for the said asset. ・ “Total rental revenue” indicates the amount calculated by annualizing the monthly rent (only for rent of rental rooms excluding usage fee of warehouse, signboard, parking lot, etc. and including common service expenses. Free rent and rent holiday will not be taken into consideration. Consumption tax, etc. are not included) of the building indicated in the lease agreement of each Acquired Asset effective as of October 31, 2018 (or as of the point of time noted separately if any), rounded to the nearest million yen. Moreover, the amount calculated by annualizing the monthly rent in the lease agreement concluded with the end tenant for the portion in the pass-through-type master lease agreement and by annualizing the monthly rent in the master lease agreement for the targeted portion in the fixed-rent-type master lease agreement is indicated when a master lease agreement has been concluded for the Acquired Assets. ・ “Security and guarantee deposits” indicates the total amount of security and guarantee deposits (including the amount expected to be received based on each lease agreement) based on the lease agreement of each Acquired Asset as of October 31, 2018 (or as of the point of time noted separately if any), rounded to the nearest million yen. ・ “Leased area” indicates the total leased area shown in the lease agreement of each Acquired Asset as of October 31, 2018 (or as of the point of time noted separately if any). Moreover, the total area for which a lease agreement has actually been concluded with the end tenant is indicated for the portion in the pass-through-type master lease agreement. ・ “Total leasable area” indicates the area which is believed to be leasable based on the lease agreement or drawing of buildings for each Acquired Asset as of October 31, 2018 (or as of the point of time noted separately if any). ・ “Occupancy rate” indicates the ratio of leased area to leasable area for each Acquired Asset as of October 31, 2018 (or as of the point of time noted separately if any), rounded to the first decimal place. ・ “Special remarks” indicates matters recognized as important as of October 31, 2018 (or as of the point of time noted separately if any) in consideration of the relationship of rights, use, safety, etc. of each Acquired Asset as well as the impact on the appraisal value, profitability, and disposition.

A-1 Tokyo Sankei Building Property name Tokyo Sankei Building Type of specified asset Real estate Location 1-7-2 Otemachi, Chiyoda-ku, Tokyo Acquisition date March 12, 2019 Acquisition price 2,509 million yen Trustee ― Overview Trust of trust establishment ― beneficiary date right Trust expiration ― date Site area 6,261.96 m2 (Note 1) Use district Commercial district Floor area ratio 1,300% Land Building 80% coverage ratio Type of Ownership (2% co-ownership interest), leasehold (2% quasi co-ownership ownership interest) (Note 2) Structure and Steel framed reinforced concrete, reinforced concrete, steel framed floors structure with flat roof/31 floors above ground and 4 below Construction September 28, 2000 completion Building Total floor area 82,494.98 m2 Use Office, assembly hall, retail, parking Type of Ownership (2% co-ownership interest) (Note 2) ownership Property management The Sankei Building Co., Ltd. company Master lease company The Sankei Building Co., Ltd. Master lease type Pass-through type Appraisal value 2,540 million yen Appraiser Japan Real Estate Institute PML value 2.3% PML value investigation Tokio Marine & Nichido Risk Consulting Co., Ltd. company Collateral None Overview of leasing (Note 4) Number of tenants 45 Total rental revenue 88 million yen Security and guarantee 84 million yen deposits Leased area 827.94 m2 Total leasable area 844.46 m2 Occupancy rate 98.0% Part of the land (site) of the property is leased land. The said leasehold (2% quasi co-ownership interest) is owned by SANKEI REAL ESTATE and the remaining portion (98% quasi co-ownership interest) is owned by The Sankei Building Co., Ltd. Approval of the owner of the said leased land (Fuji Special remarks Media Holdings, Inc.) is required upon the transfer of the leasehold associated with the transfer of the building. As for the property, SANKEI REAL ESTATE and The Sankei Building Co., Ltd. hold respective co-ownership interest of 2% and 98% in the land and

building. In addition, SANKEI REAL ESTATE and The Sankei Building Co., Ltd. also hold respective quasi co-ownership interest of 2% and 98% in the leasehold for the leased land, which is part of the land, and a co-ownership agreement has been concluded between SANKEI REAL ESTATE and The Sankei Building Co., Ltd. The following matters have been stipulated in the said agreement. ・Decision-making In principle, decision-making on all matters concerning operation and management of the property (including leasehold. The same hereafter in the following special remarks) are based on the agreement of all co-owners, and co-owners shall discuss in good faith with each other by holding meetings to reach the said agreement smoothly. Co-owners shall abide by the decision made at the reasonable discretion of the majority of co-owners if an agreement cannot be reached among all co-owners after holding multiple meetings. ・Special agreement on indivisibility Co-owners shall not request the division of the property for five years (to be automatically renewed) ・Preferential negotiation rights Co-owners shall designate other co-owners as parties to whom preferential negotiation rights are exercised in preference to third parties when transferring co-ownership interest in the property or quasi co-ownership interest in the leasehold to third parties. ・Approved matters Co-owners shall not transfer, pledge, set collateral or dispose co-ownership interest in the property or quasi co-ownership interest in the leasehold against third parties without any written consent of all other co-owners. (Note 1) 223.31 m2 of leased land is included. (Note 2) SANKEI REAL ESTATE acquired 2% co-ownership interest in the ownership of the land, 2% quasi co-ownership interest in the leasehold and 2% co-ownership interest in the ownership of the building. (Note 3) As for part of the third floor of the building (protruding portion in phase II construction work), a vibration control oil damper manufactured by KYB Corporation group has been installed after the completion of phase I construction work of the building. It has been confirmed with Takenaka Corporation (designer, structural designer, and constructor of the building) that there will be no impact on the building even if failure occurs in the future as the safety of the structure of the building is independent of the performance of such oil damper. (Note 4) In the overview of leasing, figures equivalent to 2% co-ownership interest are indicated for total rental revenue, security and guarantee deposits, leased area, total leasable area and occupancy rate.

A-2 BREEZÉ TOWER Property name BREEZÉ TOWER Type of specified asset Real estate trust beneficial interest Location 2-4-9 Umeda, Kita-ku, Osaka-shi, Osaka Acquisition date March 12, 2019 Acquisition price 8,600 million yen Trustee Mizuho Trust & Banking Co., Ltd. Overview Trust of trust establishment March 12, 2019 beneficiary date right Trust expiration March 31, 2029 date Site area 4,676.08 m2 (Note 1) Use district Commercial district Floor area ratio 800% Land Building 80% coverage ratio Type of Ownership, leasehold, mutual use rights (all being rights to use the site) ownership (30% quasi co-ownership interest) (Note 2) (Note 3) (Note 4) Structure and Steel framed, steel framed reinforced concrete structure with flat roof/37 floors floors above ground and 3 below Construction July 1, 2008 completion Building Total floor area 82,718.17 m2 (Note 5) Use Office, retail, theater Type of Sectional ownership of office portion (30% quasi co-ownership interest) ownership (Note 3) Property management The Sankei Building Co., Ltd. company Master lease company The Sankei Building Co., Ltd. Master lease type Pass-through type Appraisal value 9,300 million yen Appraiser Japan Real Estate Institute PML value 2.8% PML value investigation Tokio Marine & Nichido Risk Consulting Co., Ltd. company Collateral None Overview of leasing (Note 6) Number of tenants 36 Total rental revenue 597 million yen Security and guarantee 472 million yen deposits Leased area 8,097.34 m2 Total leasable area 8,097.34 m2 Occupancy rate 100.0% Part of the land (site) of the property is leased land. Approval of the owner of the said leased land (Sankei Shimbun Co., Ltd.) is required upon the transfer of the leasehold associated with the transfer of the building.

Special remarks Part of the exclusively owned portion of the building under compartmentalized ownership is co-owned by the trustee and a third party, and the following matters concerning the relationship on co-ownership of the said exclusively owned portion between the trustee and the said third

party has been stipulated in the lease agreement concluded among the trustee, third party and The Sankei Building Co., Ltd. ・Decision-making Matters concerning operation and management of the said exclusively owned portion shall be decided by an agreement between the trustee and the said third party, and the trustee and the said third party shall discuss in good faith with each other to reach the said agreement smoothly.

The land (site) of the property is composed of i. the land co-owned by The Sankei Building Co., Ltd. and the trustee, ii. the land leased by Sankei Shimbun Co., Ltd., and, iii. the land owned or leased by the third party which is the said co-owner (mutual use rights). Therefore, mutual use rights have been set for the site of the property among The Sankei Building Co., Ltd., which holds sectional ownership in the building, the trustee, and the third party which is the said co-owner.

A quasi co-ownership agreement has been concluded between The Sankei Building Co., Ltd. (70% quasi co-ownership interest), which is the quasi co-owner of the trust beneficiary rights in the sectional ownership of the building, and SANKEI REAL ESTATE (30% quasi co-ownership interest). The following matters have been stipulated in the quasi co-ownership agreement. ・Decision-making In principle, actions of beneficiaries are decided by reaching an agreement with all quasi co-owners. However, quasi co-owners shall abide by the decision made by the majority of quasi co-owners except for certain matters if an agreement cannot be reached among all quasi co-owners. ・Special agreement on indivisibility Quasi co-owners shall not request the division of the trust beneficiary rights for five years (to be automatically renewed) ・Preferential negotiation rights Quasi co-owners shall discuss the conditions of sale and purchase with other quasi co-owners in preference to third parties when selling quasi co-ownership interest. ・Approved matters Advance approval in written form by other quasi co-owners is required when quasi co-owners set collateral or implement disposal other than the transfer of the quasi co-ownership interest.

As of January 31, 2018, confirmation of the boundary between the property and the adjacent land on the north side of the property as well as the conclusion of memorandum, etc. pertaining to it are partially uncompleted. (Note 1) i. 74.30 m2 of land leased by Sankei Shimbun Co., Ltd. and ii. 339.89 m2 of land (portion subject to mutual use) owned or leased by third parties which are other co-owners of part of the exclusively owned portion of the building under compartmentalized ownership co-owned by the trustee are included. (Note 2) The land of the property is the site of the building under compartmentalized ownership and the percentage of the quasi co-ownership interest in the right to use the site which will be acquired by the trustee is 54.30%.

(Note 3) The trust assets constituting the trust for the trust beneficiary right acquired by SANKEI REAL ESTATE are i. 58.33% co-ownership interest in the land co-owned with The Sankei Building Co., Ltd., ii. 58.33% quasi co-ownership interest in the leasehold of the leased land, iii. 58.33% quasi co-ownership interest in the mutual use rights for the portion subject to mutual use and, iv. sectional ownership of the office portion (38.56% co-ownership interest in the sectional ownership is indicated for the exclusively owned portion of Building 27-6 as it is co-owned with a third party). SANKEI REAL ESTATE has acquired 30% quasi co-ownership interest in the said trust beneficiary right. (Note 4) The trustee uses the underground portion of the land owned by Osaka City adjacent to the site as an underground connecting passage based on the permission for exclusive possession obtained from Osaka City. (Note 5) The area of the exclusively owned portion for the sectional ownership of the office portion owned by the trustee is 35,464.91 m2 (the floor area of the exclusively owned portion of Building 27-6 which is co-owned with the trustee and the third party is calculated by taking into consideration the co-ownership interest), the area of the exclusively owned portion for the sectional ownership of the building and office portion owned by a third party is 4,504.20 m2 (the floor area of the exclusively owned portion of Building 27-6 which is co-owned with the trustee and third party is calculated by taking into consideration the co-ownership interest), and the total area of the portion co-owned among the owners of sectional ownership is 17,410.39 m2 (common area portion and attached facility. The floor area of the exclusively owned portion of Building 27-6 which is co-owned with the trustee and the third party is not included). Moreover, the area of the exclusively owned portion for the sectional ownership of the portion other than the office portion is 25,338.67 m2 and is owned by The Sankei Building Co., Ltd. (Note 6) In the overview of leasing, figures equivalent to 30% of the area and amount for the office portion constituting the trust beneficiary rights are indicated for total rental revenue, security and guarantee deposits, leased area, total leasable area and occupancy rate.

A-3 S-GATE NIHONBASHI-HONCHO Property name S-GATE NIHONBASHI-HONCHO Type of specified asset Real estate trust beneficial interest Location 1-9-1 Nihonbashi-Honcho, Chuo-ku, Tokyo Acquisition date March 12, 2019 Acquisition price 6,698 million yen Trustee Mizuho Trust & Banking Co., Ltd. Overview Trust of trust establishment March 12, 2019 beneficiary date right Trust expiration March 31, 2029 date Site area 954.21 m2 Use district Commercial district Floor area ratio 800% Land Building 80% coverage ratio Type of Ownership (51% co-ownership interest) (Note 1) ownership Structure and Steel framed structure with flat roof/11 floors above ground floors Construction October 31, 2018 completion Building Total floor area 8,174.43 m2 Use Office, parking Type of Ownership (51% co-ownership interest) (Note 1) ownership Property management The Sankei Building Co., Ltd. company Master lease company The Sankei Building Co., Ltd. Master lease type Pass-through type Appraisal value 6,780 million yen Appraiser Japan Real Estate Institute PML value 2.0% PML value investigation Tokio Marine & Nichido Risk Consulting Co., Ltd. company Collateral None Overview of leasing (Note 2) Number of tenants 3 Total rental revenue 307 million yen Security and guarantee 307 million yen deposits Leased area 3,171.83 m2 Total leasable area 3,171.83 m2 Occupancy rate 100.0% The property is co-owned with a third party and a co-ownership agreement has been concluded between the said third party (49% co-ownership interest) and Mizuho Trust & Banking Co., Ltd., the trustee. The following matters have been stipulated in the co-ownership agreement. Special remarks ・Decision-making If an agreement cannot be reached among co-owners, the percentage of co-ownership interest in the property will be totalized for each option given by co-owners and the option with the largest percentage shall be

regarded as the intention of all co-owners. ・Approved matters Approval of the third party, a co-owner of the property, is required for the transfer of co-ownership interest (excluding transfer to SANKEI REAL ESTATE). ・Preferential negotiation rights When either co-owner intends to transfer their co-ownership interest in the property to a third party, the other co-owner shall be designated as the party to whom preferential negotiation rights are exercised in preference to third parties. ・Special agreement on indivisibility The co-owners shall not request the division of the property for five years (to be automatically renewed)

In addition to the above, it has been agreed between the said third party and SANKEI REAL ESTATE that approval of the said third party will be required for the transfer of trust beneficiary rights by SANKEI REAL ESTATE. (Note 1) SANKEI REAL ESTATE acquired trust beneficiary rights with 51% co-ownership interest in the land and 51% co-ownership interest in the building as trust assets. (Note 2) The overview of leasing as of November 1, 2018 is indicated. In the overview of leasing, figures equivalent to 51% co-ownership interest are indicated for total rental revenue, security and guarantee deposits, leased area, total leasable area and occupancy rate.

A-4 S-GATE AKIHABARA Property name S-GATE AKIHABARA Type of specified asset Real estate trust beneficial interest Location 2-4-6 Higashi-Kanda, Chiyoda-ku, Tokyo Acquisition date March 12, 2019 Acquisition price 2,055 million yen Trustee Mizuho Trust & Banking Co., Ltd. Overview Trust of trust establishment March 12, 2019 beneficiary date right Trust expiration March 31, 2029 date Site area 366.30 m2 Use district Commercial district Floor area ratio 500% Land Building 80% coverage ratio Type of Ownership ownership Structure and Steel framed structure with flat roof/8 floors above ground floors Construction September 29, 2017 completion Building Total floor area 2,012.44 m2 Use Office Type of Ownership ownership Property management The Sankei Building Co., Ltd. company Master lease company The Sankei Building Co., Ltd. Master lease type Pass-through type Appraisal value 2,080 million yen Appraiser Japan Real Estate Institute PML value 2.2% PML value investigation Tokio Marine & Nichido Risk Consulting Co., Ltd. company Collateral None Overview of leasing Number of tenants 5 Total rental revenue 111 million yen Security and guarantee 111 million yen deposits Leased area 1,681.55 m2 Total leasable area 1,681.55 m2 Occupancy rate 100.0% Special remarks Not applicable

A-5 Hibiya Sankei Building Property name Hibiya Sankei Building Type of specified asset Real estate trust beneficial interest Location 1-9-1 Yurakucho, Chiyoda-ku, Tokyo Acquisition date March 12, 2019 Acquisition price 5,829 million yen Trustee Mitsubishi UFJ Trust and Banking Corporation Overview Trust of trust establishment March 12, 2019 beneficiary date right Trust expiration March 31, 2029 date Site area 562.07 m2 Use district Commercial district Floor area ratio 1,300% Land Building 80% coverage ratio Type of Ownership ownership Structure and Steel framed structure with flat roof/12 floors above ground and 2 below floors Construction June 25, 1992 completion Building Total floor area 5,673.04 m2 Use Office, retail Type of Ownership ownership Property management The Sankei Building Co., Ltd. company Master lease company The Sankei Building Co., Ltd. Master lease type Pass-through type Appraisal value 5,900 million yen Appraiser Japan Real Estate Institute PML value 3.1% PML value investigation Tokio Marine & Nichido Risk Consulting Co., Ltd. company Collateral None Overview of leasing Number of tenants 11 Total rental revenue 375 million yen Security and guarantee 324 million yen deposits Leased area 3,441.37 m2 Total leasable area 3,441.37 m2 Occupancy rate 100.0% Special remarks Not applicable

A-6 Hatchobori Sankei Building Property name Hatchobori Sankei Building Type of specified asset Real estate trust beneficial interest Location 2-7-1 Hatchobori, Chuo-ku, Tokyo Acquisition date March 12, 2019 Acquisition price 4,959 million yen Trustee Mitsubishi UFJ Trust and Banking Corporation Overview Trust of trust establishment September 26, 2000 beneficiary date right Trust expiration March 31, 2029 date Site area 974.32 m2 Use district Commercial district Floor area ratio 600% (Note) Land Building 80% coverage ratio Type of Ownership ownership Structure and Steel framed reinforced concrete structure with flat roof/9 floors above floors ground and 2 below Construction September 1, 1965 completion Building Total floor area 8,810.21 m2 Use Office, retail, garage Type of Ownership ownership Property management The Sankei Building Co., Ltd. company Master lease company The Sankei Building Co., Ltd. Master lease type Pass-through type Appraisal value 5,020 million yen Appraiser The Tanizawa Sōgō Appraisal Co., Ltd. PML value 0.3% PML value investigation Tokio Marine & Nichido Risk Consulting Co., Ltd. company Collateral None Overview of leasing Number of tenants 10 Total rental revenue 306 million yen Security and guarantee 252 million yen deposits Leased area 5,587.84 m2 Total leasable area 5,587.84 m2 Occupancy rate 100.0% Special remarks Not applicable (Note) The building of the property was duly constructed with a floor-area ratio of 894% in accordance with the construction-related regulations at that time. However, the designated floor-area ratio became 600% with the amendment of the construction-related regulations and the building is currently an existing non-conforming building.

A-7 Toyo Park Building Property name Toyo Park Building Type of specified asset Real estate trust beneficial interest Location 5-29-17 Toyo, Koto-ku, Tokyo Acquisition date March 12, 2019 Acquisition price 3,782 million yen Trustee Sumitomo Mitsui Trust Bank, Limited Overview Trust of trust establishment March 1, 2017 beneficiary date right Trust expiration March 31, 2029 date Site area 1,723.02 m2 Use district Semi-industrial district Floor area ratio 300% Land Building 60% coverage ratio Type of Ownership ownership Structure and Steel framed reinforced concrete structure with flat roof/6 floors above floors ground Construction June 18, 1991 completion Building Total floor area 5,124.10 m2 Use Office Type of Ownership ownership Property management CBRE K.K. company Master lease company － Master lease type － Appraisal value 3,790 million yen Appraiser Japan Real Estate Institute PML value 9.0% PML value investigation Tokio Marine & Nichido Risk Consulting Co., Ltd. company Collateral None Overview of leasing Number of tenants 4 Total rental revenue 199 million yen Security and guarantee 163 million yen deposits Leased area 4,098.60 m2 Total leasable area 4,224.52 m2 Occupancy rate 97.0% Special remarks Not applicable

B-1 Hotel Intergate Tokyo Kyobashi Property name Hotel Intergate Tokyo Kyobashi Type of specified asset Real estate trust beneficial interest Location 3-7-8 Kyobashi, Chuo-ku, Tokyo Acquisition date March 12, 2019 Acquisition price 8,961 million yen Trustee Mizuho Trust & Banking Co., Ltd. Overview of Trust trust establishment March 12, 2019 beneficiary date right Trust expiration March 31, 2029 date Site area 489.65 m2 Use district Commercial district Floor area ratio 800% Land Building 80% coverage ratio Type of Ownership ownership Structure and Steel framed structure with flat roof/17 floors above ground floors Construction January 18, 2018 completion Building Total floor area 5,583.73 m2 Use Hotel, retail, parking Type of Ownership ownership Property management company The Sankei Building Management Co., Ltd. Master lease company SANKEI REAL ESTATE Master lease type Pass-through type Appraisal value 9,070 million yen Appraiser Daiwa Real Estate Appraisal Co., Ltd. PML value 1.8% PML value investigation Tokio Marine & Nichido Risk Consulting Co., Ltd. company Collateral None Overview of leasing Number of tenants 1 Total rental revenue 413 million yen Security and guarantee 206 million yen deposits Leased area 6,006.53 m2 Total leasable area 6,006.53 m2 Occupancy rate 100.0% Overview of lease Type of agreement: Fixed-term building lease agreement agreement Period of agreement: 20 years (from February 1, 2018 to January 31, 2038) Rent revision: Rent will not be revised and Article 32 of the Act on Land and Building Leases will not be applied. However, when there are significant changes in economic circumstances (hyperinflation, world crisis etc.) or other significant reasons, the lessor and lessee may revise the rent upon consultation. In addition, if operation is suspended due to inevitable reasons such as natural disaster, terrorism and war, the lessor and lessee may revise the rent during the period of suspension of operation upon

consultation. Renewal of agreement: Not applicable as the agreement is a fixed-term building lease agreement. Mid-term cancellation: The lessor and lessee cannot cancel the lease agreement until the termination of the agreement due to the expiration of lease period. However, the lessor and lessee can cancel the agreement by paying the amount equivalent to the rent from the cancellation date to the expiration date of the lease agreement or the amount equivalent to two years’ rent, whichever is higher. Special remarks Not applicable

3. Overview of Seller (A-1 Tokyo Sankei Building, A-2 BREEZÉ TOWER, A-3 S-GATE NIHONBASHI-HONCHO, A-4 S-GATE AKIHABARA, A-5 Hibiya Sankei Building, A-6 Hatchobori Sankei Building, B-1 Hotel Intergate Tokyo Kyobashi) (1) Name The Sankei Building Co., Ltd. (2) Location 1-7-2 Otemachi, Chiyoda-ku, Tokyo Post and name of (3) President & CEO Kazunobu Iijima representative Development, acquisition, sales, leasing, sale in lots and management of (4) Line of business real estate (office, residence, hotel, etc.) (5) Capital 28,120 million yen (as of March 31, 2018) (6) Date of establishment June 11, 1951 (7) Net assets 97,363 million yen (as of March 31, 2018) (8) Total assets 309,196 million yen (as of March 31, 2018) Major shareholders (9) Fuji Media Holdings Inc. 100% and shareholding ratio (10) Relationship with SANKEI REAL ESTATE and the Asset Management Company The company owns 4.98% of the total number of investment units issued and outstanding of SANKEI REAL ESTATE as of the date of this document. It Capital relationship also owns 100% of the shares issued and outstanding of the Asset Management Company as of the date of this document. Nine executives and employees of the Asset Management Company are Personnel relationship loaned staff from the company. The company has concluded a trademark license agreement, a property management business consignment agreement and a master lease Business relationship agreement with SANKEI REAL ESTATE. It has also concluded a sponsor support agreement and a fixed-term building lease agreement with the Asset Management Company. The company falls under the category of a related party of SANKEI REAL Status as related party ESTATE and the Asset Management Company.

(A-7 Toyo Park Building) (1) Name Godo Kaisha SKB 1 (2) Location 1-4-1 Nihonbashi, Chuo-ku, Tokyo Post and name of Representative partner: General Incorporated Association SKB 1 (3) representative Executor of duties: Takanori Mishina 1. Acquisition, holding and disposal of trust beneficiary rights in real estate 2. Sale and purchase, leasing, management, acquisition, holding, disposal (4) Line of business and use of real estate 3. All other businesses incidental or pertaining to the above (5) Capital 100,000 yen (6) Date of establishment May 24, 2018 (7) Net assets Not disclosed as consent for the disclosure of net assets has not been

obtained from the seller. Not disclosed as consent for the disclosure of total assets has not been (8) Total assets obtained from the seller. Major employees and (9) General Incorporated Association SKB 1 100% shareholding ratio (10) Relationship with SANKEI REAL ESTATE and the Asset Management Company The company is a special purpose company invested in by The Sankei Building Co., Ltd., the parent company of the Asset Management Company, Capital relationship and The Sankei Building Co., Ltd. owns 4.98% of the total number of investment units issued and outstanding of SANKEI REAL ESTATE as of the date of this document. There are no personnel relationships to be stated between the company Personnel relationship and SANKEI REAL ESTATE or the Asset Management Company. There are no business relationships to be stated between the company and Business relationship SANKEI REAL ESTATE or the Asset Management Company. The company falls under the category of a related party of SANKEI REAL Status as related party ESTATE and the Asset Management Company.

4. Transaction with Interested Parties, etc. The Sankei Building Co., Ltd. and Godo Kaisha SKB 1, the sellers of the Acquired Assets, fall under the category of an interested party, etc. stipulated in Article 201 of the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended) (the “Investment Trust Act”) and Article 123 of the Order for Enforcement of the Act on Investment Trusts and Investment Corporations (Act No. 480 of 2000, as amended) (the “Order for Enforcement of the Investment Trust Act”) as well as under the category of an interested party defined in the Asset Management Company’s rules on transactions with interested parties. Therefore, upon the conclusion of the sales and purchase agreement, the Asset Management Company has completed necessary procedures such as deliberation and resolution in accordance with the rules on transactions with interested parties, which is a voluntary rule for preventing conflict of interests in transactions with interest parties.

5. Status of Sellers Property acquisitions from parties having special interest are as follows. The following table shows i. the name of the company, ii. relationship with parties having special interest and, iii. background, reasons, etc. of acquisition. Property Previous owner/ holder of Second previous owner/ holder Third previous owner/ holder name trust beneficiary right of trust beneficiary right of trust beneficiary right (Location) i., ii., iii. i., ii., iii. i., ii., iii. Acquisition (transfer) price Acquisition (transfer) price Acquisition (transfer) price Acquisition (transfer) period Acquisition (transfer) period Acquisition (transfer) period Tokyo Sankei i. The Sankei Building Co., Ltd. i. Sankei Shimbun Co., Ltd. Other than a party having Building ii. Parent company of the ii. Parent company of The special interest (1-7-2 Asset Management Sankei Building Co., Ltd., Otemachi, Company the parent company of the Chiyoda-ku, iii. Acquired for development Asset Management Tokyo) purposes Company, at that time iii. Acquired for development purposes Omitted as the property was Omitted as the property was ― owned for more than a year owned for more than a year Land: February 1955, Land: January 1955 October 1958 ― Building: September 2000 Building: March 1955 (completion) (completion)

Property Previous owner/ holder of Second previous owner/ holder Third previous owner/ holder name trust beneficiary right of trust beneficiary right of trust beneficiary right (Location) BREEZÉ i. The Sankei Building Co., Ltd. i. (A) Osaka Shimbun (B) Other than a party having TOWER ii. Parent company of the Sankei Shimbun Co., Ltd. special interest (2-4-9 Umeda, Asset Management (C) Individual Kita-ku, Company ii. (A) Parent company of The Osaka-shi, iii. Acquired for development Sankei Building Co., Ltd., Osaka) purposes the parent company of the Asset Management Company, at that time (currently integrated with Sankei Shimbun Co., Ltd.) (B) Parent company of The Sankei Building Co., Ltd., the parent company of the Asset Management Company (C) Other than a party having special interest iii. Acquired for development purposes Omitted as the property was Omitted as the property was ― owned for more than a year owned for more than a year Land: July 1952, January 1954 Land: July 1949, June 1951 ― Building: October 2008 (completion) Building: July 1952 (completion)

Second previous Property name Previous owner/holder of Third previous owner/ holder owner/holder of trust (Location) trust beneficiary right of trust beneficiary right beneficiary right i., ii., iii. i., ii., iii. i., ii., iii. Acquisition (transfer) price Acquisition (transfer) price Acquisition (transfer) price Acquisition (transfer) Acquisition (transfer) Acquisition (transfer) period period period S-GATE i. The Sankei Building Co., Ltd. Other than a party having NIHONBASHI-HONCHO ii. Parent company of the special interest (1-9-1 Asset Management ― Nihonbashi-Honcho, Company Chuo-ku, Tokyo) iii. Acquired for development purposes Omitted as the property was ― ― owned for more than a year Land: October 2015 Building: October 2018 ― ― (completion) S-GATE AKIHABARA i. The Sankei Building Co., Ltd. Other than a party having (2-4-6 Higashi-Kanda, ii. Parent company of the special interest Chiyoda-ku, Tokyo) Asset Management ― Company iii. Acquired for development purposes Omitted as the property was ― ― owned for more than a year Land: December 2015 Building: September 2017 ― ― (completion) Hibiya Sankei Building i. The Sankei Building Co., Ltd. Other than a party having (1-9-1 Yurakucho, ii. Parent company of the special interest Chiyoda-ku, Tokyo) Asset Management Company ― iii. Acquired for investment and management purposes Omitted as the property was ― ― owned for more than a year November 2005 ― ― Hatchobori Sankei i. The Sankei Building Co., Ltd. Other than a party having Building ii. Parent company of the special interest (2-7-1 Hatchobori, Asset Management Chuo-ku, Tokyo) Company ― iii. Acquired for investment and management purposes Omitted as the property was ― ― owned for more than a year March 2016 ― ― Toyo Park Building i. Godo Kaisha SKB 1 Other than a party having (5-29-17 Toyo, ii. Special purpose company special interest ― Koto-ku, Tokyo) invested in by The Sankei Building Co., Ltd., the

Second previous Property name Previous owner/holder of Third previous owner/ holder owner/holder of trust (Location) trust beneficiary right of trust beneficiary right beneficiary right parent company of the Asset Management Company iii. Acquired for investment and management purposes 3,650 million yen ― ― September 2018 ― ― Hotel Intergate Tokyo i. The Sankei Building Co., Ltd. Other than a party having Kyobashi ii. Parent company of the special interest (3-7-8 Kyobashi, Asset Management ― Chuo-ku, Tokyo) Company iii. Acquired for development purposes Omitted as the property was ― ― owned for more than a year Land: June 2015 Building: January 2018 ― ― (completion)

6. Overview of Brokerage (1) Overview of Broker The broker in the acquisition of Toyo Park Building is The Sankei Building Co., Ltd. For the overview of The Sankei Building Co., Ltd., please refer to the column of “The Sankei Building Co., Ltd.” in “3. Overview of the Seller.” The Sankei Building Co., Ltd. falls under the category of an interested party, etc. stipulated in Article 201 of the Investment Trust Act and Article 123 of the Order for Enforcement of the Investment Trust Act as well as under the category of an interested party defined in the Asset Management Company’s rules on transactions with interested parties. Therefore, upon the conclusion of the sales and purchase agreement, the Asset Management Company has completed necessary procedures such as deliberation and resolution in accordance with the rules on transactions with interested parties, which is a voluntary rule for preventing conflict of interests in transactions with interest parties.

(2) Breakdown and Amount of Brokerage Fee, etc. The brokerage fee for the above broker is 76 million yen (excluding consumption tax, etc. and rounded down to the nearest million yen).

There are no applicable matters for the Acquired Assets other than “Toyo Park Building.”

7. Schedule of Acquisition Date of determination of acquisition January 22, 2019 Date of conclusion of purchase January 23, 2019 agreement Payment date March 12, 2019 Date of delivery of properties March 12, 2019

8. Future Outlook For the operating forecasts for the fiscal period ending August 2019 (from November 19, 2018 to August 31, 2019), fiscal period ending February 2020 (from September 1, 2019 to February 29, 2020), fiscal period ending August 2020 (from March 1, 2020 to August 31, 2020) and fiscal period ending February 2021 (from September 1, 2020 to February 28, 2021), please refer to “Notice Concerning Operating Forecasts for the Fiscal Period Ending August 2019, Fiscal Period Ending February 2020, Fiscal Period Ending August 2020 and Fiscal Period Ending February 2021” announced today.

9. Overview of Appraisal Report

Overview of appraisal report Property name Tokyo Sankei Building Appraiser Japan Real Estate Institute Appraisal value 2,540 million yen Appraisal date October 31, 2018

Items Details Overview, etc. Assessed by applying the DCF method and direct Income approach value 2,540 million yen capitalization method Value based on direct 2,580 million yen capitalization method i. Operating revenue 119 million yen Assessed by taking into consideration rental revenue, Effective gross income 124 million yen common area charges, etc. which are deemed stable over the long term Assessed by taking into consideration vacancy rates which Loss from vacancy, etc. 4 million yen are deemed stable over the long term ii. Operating expenses 49 million yen Assessed by taking into consideration the level of expenses Maintenance and 12 million yen of similar properties based on the past actual results and operation cost conditions of the current agreement Assessed by taking into consideration occupancy rates, etc. Utilities expenses 6 million yen based on the past actual results Assessed by taking into consideration the engineering report Repair expenses 1 million yen and the level of expenses of similar properties Assessed by taking into consideration the level of expenses PM fee 2 million yen of similar properties based on the past actual results and

conditions of the current agreement

Assessed by taking into consideration the assumed turnover Tenant soliciting fees, etc. 0 million yen period of lessees

Assessed by taking into consideration the past actual results Taxes and public dues 24 million yen and the level of similar properties Non-life insurance Assessed by taking into consideration the level of expenses 0 million yen premium of similar properties Assessed by taking into consideration the level of expenses Other expenses 1 million yen of similar properties iii. Net operating income 69 million yen (NOI: i. - ii.) iv. Income from deposits 0 million yen Assessed by assuming an investment yield of 1.0%.

Assessed by taking into consideration the engineering report v. Capital expenditure 3 million yen and the level of renewal fees of similar properties Net cash flow 67 million yen (NCF: iii. + iv. - v.) Assessed by taking into consideration the marketability of Capitalization rate 2.6% targeted properties, transaction yield of similar properties, etc. Value based on discounted cash 2,500 million yen flow method Assessed by taking into consideration the competitiveness, Discount rate 2.3% etc. of targeted properties

Assessed by taking into consideration the risk on aging, Terminal capitalization rate 2.7% market condition, etc. Integrated value based on cost method 2,690 million yen Ratio of land 94.4%

Ratio of building 5.6% Other matters which the appraiser has － paid attention to in the appraisal (Note) All of the above amounts are the figures equivalent to 2% co-ownership interest.

Overview of appraisal report Property name BREEZÉ TOWER Appraiser Japan Real Estate Institute Appraisal value 9,300 million yen Appraisal date October 31, 2018

Items Details Overview, etc. Assessed by applying the DCF method and direct Income approach value 9,300 million yen capitalization method Value based on direct 9,360 million yen capitalization method i. Operating revenue 630 million yen Assessed by taking into consideration rental revenue, Effective gross income 673 million yen common area charges, etc. which are deemed stable over the long term Assessed by taking into consideration vacancy rates which Loss from vacancy, etc. 43 million yen are deemed stable over the long term ii. Operating expenses 225 million yen Assessed by taking into consideration the level of expenses Maintenance and 103 million yen of similar properties based on the past actual results and operation cost conditions of the current agreement Assessed by taking into consideration occupancy rates, etc. Utilities expenses 33 million yen based on the past actual results Assessed by taking into consideration the engineering report Repair expenses 18 million yen and the level of expenses of similar properties Assessed by taking into consideration the level of expenses PM fee 11 million yen of similar properties based on the past actual results and

conditions of the current agreement

Assessed by taking into consideration the assumed turnover Tenant soliciting fees, etc. 3 million yen period of lessees

Assessed by taking into consideration the past actual results Taxes and public dues 46 million yen and the level of similar properties Non-life insurance Assessed by taking into consideration the level of expenses 1 million yen premium of similar properties Assessed by taking into consideration the level of expenses Other expenses 9 million yen of similar properties iii. Net operating income 404 million yen (NOI: i. - ii.) iv. Income from deposits 4 million yen Assessed by assuming an investment yield of 1.0%.

Assessed by taking into consideration the engineering report v. Capital expenditure 43 million yen and the level of renewal fees of similar properties Net cash flow 365 million yen (NCF: iii. + iv. - v.) Assessed by taking into consideration the marketability of Capitalization rate 3.9% targeted properties, transaction yield of similar properties, etc. Value based on discounted cash 9,240 million yen flow method Assessed by taking into consideration the competitiveness, Discount rate 3.5% etc. of targeted properties

Assessed by taking into consideration the risk on aging, Terminal capitalization rate 4.1% market condition, etc. Integrated value based on cost 8,640 million yen method Ratio of land 71.7%

Ratio of building 28.3% Other matters which the appraiser has － paid attention to in the appraisal (Note) All of the above amounts are the figures equivalent to 30% quasi co-ownership interest in sectional ownership of the office portion.

Overview of appraisal report Property name S-GATE NIHONBASHI-HONCHO Appraiser Japan Real Estate Institute Appraisal value 6,780 million yen Appraisal date October 31, 2018

Items Details Overview, etc. Assessed by applying the DCF method and direct Income approach value 6,780 million yen capitalization method Value based on direct 6,840 million yen capitalization method i. Operating revenue 311 million yen Assessed by taking into consideration rental revenue, Effective gross income 324 million yen common area charges, etc. which are deemed stable over the long term Assessed by taking into consideration vacancy rates which Loss from vacancy, etc. 12 million yen are deemed stable over the long term ii. Operating expenses 58 million yen Assessed by taking into consideration the level of expenses Maintenance and 13 million yen of similar properties based on the past actual results and operation cost conditions of the current agreement Assessed by taking into consideration occupancy rates, etc. Utilities expenses 11 million yen based on the past actual results Assessed by taking into consideration the engineering report Repair expenses 1 million yen and the level of expenses of similar properties Assessed by taking into consideration the level of expenses PM fee 4 million yen of similar properties based on the past actual results and

conditions of the current agreement Assessed by taking into consideration the assumed turnover Tenant soliciting fees, etc. 2 million yen period of lessees Assessed by taking into consideration the past actual results Taxes and public dues 23 million yen and the level of similar properties Non-life insurance Assessed by taking into consideration the level of expenses 0 million yen premium of similar properties Assessed by taking into consideration the level of expenses Other expenses 0 million yen of similar properties iii. Net operating income 253 million yen (NOI: i. - ii.) iv. Income from deposits 2 million yen Assessed by assuming an investment yield of 1.0%.

Assessed by taking into consideration the engineering report v. Capital expenditure 4 million yen and the level of renewal fees of similar properties Net cash flow 252 million yen (NCF: iii. + iv. - v.) Assessed by taking into consideration the marketability of Capitalization rate 3.7% targeted properties, transaction yield of similar properties, etc. Value based on discounted cash 6,720 million yen flow method Assessed by taking into consideration the competitiveness, Discount rate 3.2% etc. of targeted properties

Assessed by taking into consideration the risk on aging, Terminal capitalization rate 3.7% market condition, etc. Integrated value based on cost 6,500 million yen method Ratio of land 78.4%

Ratio of building 21.6% Other matters which the appraiser has － paid attention to in the appraisal (Note) All of the above amounts are the figures equivalent to 51% co-ownership interest.

Overview of appraisal report Property name S-GATE AKIHABARA Appraiser Japan Real Estate Institute Appraisal value 2,080 million yen Appraisal date October 31, 2018

Items Details Overview, etc. Assessed by applying the DCF method and direct Income approach value 2,080 million yen capitalization method Value based on direct 2,110 million yen capitalization method i. Operating revenue 110 million yen Assessed by taking into consideration rental revenue, Effective gross income 116 million yen common area charges, etc. which are deemed stable over the long term Assessed by taking into consideration vacancy rates which Loss from vacancy, etc. 5 million yen are deemed stable over the long term ii. Operating expenses 30 million yen Assessed by taking into consideration the level of expenses Maintenance and 9 million yen of similar properties based on the past actual results and operation cost conditions of the current agreement Assessed by taking into consideration occupancy rates, etc. Utilities expenses 6 million yen based on the past actual results Assessed by taking into consideration the engineering report Repair expenses 0 million yen and the level of expenses of similar properties Assessed by taking into consideration the level of expenses PM fee 2 million yen of similar properties based on the past actual results and

conditions of the current agreement Assessed by taking into consideration the assumed turnover Tenant soliciting fees, etc. 0 million yen period of lessees Assessed by taking into consideration the past actual results Taxes and public dues 10 million yen and the level of similar properties Non-life insurance Assessed by taking into consideration the level of expenses 0 million yen premium of similar properties Assessed by taking into consideration the level of expenses Other expenses 0 million yen of similar properties iii. Net operating income 80 million yen (NOI: i. - ii.) iv. Income from deposits 1 million yen Assessed by assuming an investment yield of 1.0%.

Assessed by taking into consideration the engineering report v. Capital expenditure 1 million yen and the level of renewal fees of similar properties Net cash flow 80 million yen (NCF: iii. + iv. - v.) Assessed by taking into consideration the marketability of Capitalization rate 3.8% targeted properties, transaction yield of similar properties, etc. Value based on discounted cash 2,040 million yen flow method Assessed by taking into consideration the competitiveness, Discount rate 3.6% etc. of targeted properties

Assessed by taking into consideration the risk on aging, Terminal capitalization rate 4.0% market condition, etc. Integrated value based on cost 1,990 million yen method Ratio of land 71.2%

Ratio of building 28.8% Other matters which the appraiser has － paid attention to in the appraisal

Overview of appraisal report Property name Hibiya Sankei Building Appraiser Japan Real Estate Institute Appraisal value 5,900 million yen Appraisal date October 31, 2018

Items Details Overview, etc. Assessed by applying the DCF method and direct Income approach value 5,900 million yen capitalization method Value based on direct 6,020 million yen capitalization method i. Operating revenue 390 million yen Assessed by taking into consideration rental revenue, Effective gross income 414 million yen common area charges, etc. which are deemed stable over the long term Assessed by taking into consideration vacancy rates which Loss from vacancy, etc. 23 million yen are deemed stable over the long term ii. Operating expenses 174 million yen Assessed by taking into consideration the level of expenses Maintenance and 27 million yen of similar properties based on the past actual results and operation cost conditions of the current agreement Assessed by taking into consideration occupancy rates, etc. Utilities expenses 22 million yen based on the past actual results Assessed by taking into consideration the engineering report Repair expenses 8 million yen and the level of expenses of similar properties Assessed by taking into consideration the level of expenses PM fee 5 million yen of similar properties based on the past actual results and

conditions of the current agreement Assessed by taking into consideration the assumed turnover Tenant soliciting fees, etc. 2 million yen period of lessees Assessed by taking into consideration the past actual results Taxes and public dues 107 million yen and the level of similar properties Non-life insurance Assessed by taking into consideration the level of expenses 0 million yen premium of similar properties Assessed by taking into consideration the level of expenses Other expenses 0 million yen of similar properties iii. Net operating income 216 million yen (NOI: i. - ii.) iv. Income from deposits 3 million yen Assessed by assuming an investment yield of 1.0%.

Assessed by taking into consideration the engineering report v. Capital expenditure 20 million yen and the level of renewal fees of similar properties Net cash flow 198 million yen (NCF: iii. + iv. - v.) Assessed by taking into consideration the marketability of Capitalization rate 3.3% targeted properties, transaction yield of similar properties, etc. Value based on discounted cash 5,780 million yen flow method Assessed by taking into consideration the competitiveness, Discount rate 3.1% etc. of targeted properties

Assessed by taking into consideration the risk on aging, Terminal capitalization rate 3.5% market condition, etc. Integrated value based on cost 6,750 million yen method Ratio of land 97.0%

Ratio of building 3.0% Other matters which the appraiser has － paid attention to in the appraisal

Overview of appraisal report Property name Hatchobori Sankei Building Appraiser The Tanizawa Sōgō Appraisal Co., Ltd. Appraisal value 5,020 million yen Appraisal date October 31, 2018

Items Details Overview, etc. Assessed by applying the DCF method and direct Income approach value 5,020 million yen capitalization method Value based on direct 5,080 million yen capitalization method i. Operating revenue 329 million yen Assessed by taking into consideration rental revenue, Effective gross income 353 million yen common area charges, etc. which are deemed stable over the long term Assessed by taking into consideration vacancy rates which Loss from vacancy, etc. 23 million yen are deemed stable over the long term ii. Operating expenses 94 million yen Assessed by taking into consideration the level of expenses Maintenance and 28 million yen of similar properties based on the past actual results and operation cost conditions of the current agreement Assessed by taking into consideration occupancy rates, etc. Utilities expenses 25 million yen based on the past actual results Assessed by taking into consideration the engineering report Repair expenses 11 million yen and the level of expenses of similar properties Assessed by taking into consideration the level of expenses PM fee 4 million yen of similar properties based on the past actual results and

conditions of the current agreement Assessed by taking into consideration the assumed turnover Tenant soliciting fees, etc. 2 million yen period of lessees Assessed by taking into consideration the past actual results Taxes and public dues 19 million yen and the level of similar properties Non-life insurance Assessed by taking into consideration the level of expenses 1 million yen premium of similar properties Assessed by taking into consideration the level of expenses Other expenses 1 million yen of similar properties iii. Net operating income 234 million yen (NOI: i. - ii.) iv. Income from deposits 2 million yen Assessed by assuming an investment yield of 1.0%.

Assessed by taking into consideration the engineering report v. Capital expenditure 23 million yen and the level of renewal fees of similar properties Net cash flow 213 million yen (NCF: iii. + iv. - v.) Assessed by taking into consideration the marketability of Capitalization rate 4.2% targeted properties, transaction yield of similar properties, etc. Value based on discounted cash 4,990 million yen flow method Assessed by taking into consideration the competitiveness, Discount rate 4.3% etc. of targeted properties

Assessed by taking into consideration the risk on aging, Terminal capitalization rate 4.4% market condition, etc. Integrated value based on cost 5,130 million yen method Ratio of land 91.4%

Ratio of building 8.6& Other matters which the appraiser has － paid attention to in the appraisal

Overview of appraisal report Property name Toyo Park Building Appraiser Japan Real Estate Institute Appraisal value 3,790 million yen Appraisal date October 31, 2018

Items Details Overview, etc. Assessed by applying the DCF method and direct Income approach value 3,790 million yen capitalization method Value based on direct 3,860 million yen capitalization method i. Operating revenue 223 million yen Assessed by taking into consideration rental revenue, Effective gross income 233 million yen common area charges, etc. which are deemed stable over the long term Assessed by taking into consideration vacancy rates which Loss from vacancy, etc. 9 million yen are deemed stable over the long term ii. Operating expenses 55 million yen Assessed by taking into consideration the level of expenses Maintenance and 14 million yen of similar properties based on the past actual results and operation cost conditions of the current agreement Assessed by taking into consideration occupancy rates, etc. Utilities expenses 16 million yen based on the past actual results Assessed by taking into consideration the engineering report Repair expenses 3 million yen and the level of expenses of similar properties Assessed by taking into consideration the level of expenses PM fee 4 million yen of similar properties based on the past actual results and

conditions of the current agreement Assessed by taking into consideration the assumed turnover Tenant soliciting fees, etc. 1 million yen period of lessees Assessed by taking into consideration the past actual results Taxes and public dues 14 million yen and the level of similar properties Non-life insurance Assessed by taking into consideration the level of expenses 0 million yen premium of similar properties Assessed by taking into consideration the level of expenses Other expenses 0 million yen of similar properties iii. Net operating income 168 million yen (NOI: i. - ii.) iv. Income from deposits 1 million yen Assessed by assuming an investment yield of 1.0%.

Assessed by taking into consideration the engineering report v. Capital expenditure 7 million yen and the level of renewal fees of similar properties Net cash flow 162 million yen (NCF: iii. + iv. - v.) Assessed by taking into consideration the marketability of Capitalization rate 4.2% targeted properties, transaction yield of similar properties, etc. Value based on discounted cash 3,710 million yen flow method Assessed by taking into consideration the competitiveness, Discount rate 4.0% etc. of targeted properties

Assessed by taking into consideration the risk on aging, Terminal capitalization rate 4.4% market condition, etc. Integrated value based on cost 2,670 million yen method Ratio of land 86.8%

Ratio of building 13.2% Other matters which the appraiser has － paid attention to in the appraisal

Overview of appraisal report Property name Hotel Intergate Tokyo Kyobashi Appraiser Daiwa Real Estate Appraisal Co., Ltd. Appraisal value 9,070 million yen Appraisal date October 31, 2018

Items Details Overview, etc. Assessed by applying the DCF method and direct Income approach value 9,070 million yen capitalization method Value based on direct 9,220 million yen capitalization method i. Operating revenue 413 million yen Assessed by taking into consideration rental revenue, Effective gross income 413 million yen common area charges, etc. which are deemed stable over the long term Assessed by taking into consideration vacancy rates which Loss from vacancy, etc. 0 million yen are deemed stable over the long term ii. Operating expenses 60 million yen Assessed by taking into consideration the level of expenses Maintenance and 0 million yen of similar properties based on the past actual results and operation cost conditions of the current agreement Assessed by taking into consideration occupancy rates, etc. Utilities expenses 0 million yen based on the past actual results Assessed by taking into consideration the engineering report Repair expenses 2 million yen and the level of expenses of similar properties Assessed by taking into consideration the level of expenses PM fee 2 million yen of similar properties based on the past actual results and

conditions of the current agreement Assessed by taking into consideration the assumed turnover Tenant soliciting fees, etc. 0 million yen period of lessees Assessed by taking into consideration the past actual results Taxes and public dues 53 million yen and the level of similar properties Non-life insurance Assessed by taking into consideration the level of expenses 1 million yen premium of similar properties Assessed by taking into consideration the level of expenses Other expenses 1 million yen of similar properties iii. Net operating income 353 million yen (NOI: i. - ii.) iv. Income from deposits 2 million yen Assessed by assuming an investment yield of 1.0%.

Assessed by taking into consideration the engineering report v. Capital expenditure 5 million yen and the level of renewal fees of similar properties Net cash flow 350 million yen (NCF: iii. + iv. - v.) Assessed by taking into consideration the marketability of Capitalization rate 3.8% targeted properties, transaction yield of similar properties, etc. Value based on discounted cash 9,000 million yen flow method Assessed by taking into consideration the competitiveness, Discount rate 3.6% etc. of targeted properties

Assessed by taking into consideration the risk on aging, Terminal capitalization rate 4.0% market condition, etc. Integrated value based on cost 9,220 million yen method Ratio of land 78.1%

Ratio of building 21.9% Other matters which the appraiser has － paid attention to in the appraisal

* This document is distributed to the Kabuto Club (the press club of the Tokyo Stock Exchange), the press club of the Ministry of Land, Infrastructure, Transport and Tourism, and the press club for construction trade publications of the Ministry of Land, Infrastructure, Transport and Tourism * SANKEI REAL ESTATE Inc. website: https://www.s-reit.co.jp/en/

Reference Material 1 Portfolio List Reference Material 2 Characteristics of Acquired Assets

Reference Material 1 Portfolio List Acquisition price Appraisal value (Note 1) Acquisition Property (millions of Area Category Property name Location Price Investment date number yen) (millions ratio (Note 3) (Note 2) of yen) (%) Tokyo Sankei Building March 12, A-1 Chiyoda-ku, Tokyo 2,509 5.8 2,540 (Note 4) 2019 BREEZÉ TOWER Kita-ku, March 12, A-2 8,600 19.8 9,300 (Note 4) Osaka-shi, Osaka 2019 S-GATE March 12, A-3 NIHONBASHI-HONCHO Chuo-ku, Tokyo 6,698 15.4 6,780 2019 (Note 4) Office Greater March 12, buildings A-4 S-GATE AKIHABARA Chiyoda-ku, Tokyo 2,055 4.7 2,080 Tokyo, 2019 Osaka March 12, A-5 Hibiya Sankei Building Chiyoda-ku, Tokyo 5,829 13.4 5,900 City, 2019 Nagoya Hatchobori Sankei March 12, City A-6 Chuo-ku, Tokyo 4,959 11.4 5,020 Building 2019 March 12, A-7 Toyo Park Building Koto-ku, Tokyo 3,782 8.7 3,790 2019 Subtotal (average) - 34,434 79.4 35,410 - Hotel Intergate Tokyo March 12, Sub assets B-1 Chuo-ku, Tokyo 8,961 20.6 9,070 Kyobashi 2019 Subtotal (average) - 8,961 20.6 9,070 - Total (average) - 43,395 100.0 44,480 - (Note 1) “Acquisition price” is the sale and purchase price of real estate and each trust beneficiary right stated in each sale and purchase agreement for the Acquired Assets, rounded down to the nearest million yen. The sale and purchase prices do not include consumption tax, local consumption tax and the various expenses required for the acquisition. “Investment ratio” is the proportion of the acquisition price of each acquired asset to the sum total amount of acquisition prices, rounded to one decimal place. (Note 2) “Appraisal value” is the appraisal value as of October 31, 2018 stated in each real estate appraisal report. The appraisal of the Acquired Assets is entrusted to Japan Real Estate Institute, The Tanizawa Sōgō Appraisal Co., Ltd. and Daiwa Real Estate Appraisal Co., Ltd. (Note 3) “Acquisition date” indicates the acquisition date stated in each sale and purchase agreement of the Acquired Assets. (Note 4) The acquisition price and appraisal value of “Tokyo Sankei Building” and “S-GATE NIHONBASHI-HONCHO” are the figures equivalent to the co-ownership interests in each property acquired by SANKEI REAL ESTATE (2% and 51%, respectively) (*1). The acquisition price and appraisal value of “BREEZÉ TOWER” is the figure equivalent to the quasi co-ownership interest in sectional ownership of the office portion acquired by SANKEI REAL ESTATE (30%) (*2). (*1) As for “Tokyo Sankei Building,” SANKEI REAL ESTATE acquired 2% co-ownership interest in the ownership of the site, 2% quasi co-ownership interest in the leasehold and 2% co-ownership interest in the ownership of the building. As for “S-GATE NIHONBASHI-HONCHO,” it acquired trust beneficiary rights with 51% co-ownership interest in the ownership of the site and building as trust assets. “Co-ownership interest in each property (2% and 51%, respectively)” is used as such meaning. For details, please refer to the individual asset table of “Tokyo Sankei Building” and “S-GATE NIHONBASHI-HONCHO” in “2. Overview of Individual Properties of the Acquired Assets” below. (*2) As for “BREEZÉ TOWER,” SANKEI REAL ESTATE acquired 30% quasi co-ownership interest in trust beneficiary rights with sectional ownership of the office portion and use rights of the site (ownership of the site, leasehold and mutual use rights) as trust assets. “Quasi co-ownership interest in sectional ownership (30%)” is used as such meaning. For details, please refer to the individual asset table of “BREEZÉ TOWER” in “2. Overview of Individual Properties of the Acquired Assets” below.

Reference Material 2 Characteristics of Acquired Assets

(Property Number A-1) Tokyo Sankei Building (1) Characteristics of the Property ・Otemachi Station where 5 subway lines are available is a core business base in Japan where financial institutions as well as the headquarters and business facilities of companies representing Japan concentrate, and Tokyo Sankei Building boasts excellent traffic and proximity conditions as a prime location directly connected to the station. ・It is a super high-rise building with a high level of safety implementing BCP (business continuity planning) measures and having a 24-hour security system, emergency power generation facilities and earthquake resistance performance which is 1.5 times above the new earthquake resistance standards. ・The lower floor houses “Otemachi Sankei Plaza,” a rental hall and conference room with a maximum capacity of 600 people, and “Metro Square” with restaurants, medical and retail facilities as well as event spaces, is located underground. The property is an information transmission base in the Otemachi area where many people come and go.

(2) Map of surrounding area

(3) Photo of Acquired Asset

(Property Number A-2) BREEZÉ TOWER (1) Characteristics of the Property ・The property is located in the Umeda area, a business district representing Kansai, and is accessible via 5 stations and 11 lines including Nishi-Umeda Station on the Osaka Metro Yotsubashi Line, the closest station, and JR Osaka Station. In addition, it is close to Shin-Osaka Station, the gateway to Osaka, as well as Itami Airport, and is a suitable location for business. ・Possesses energy-saving facilities such as rooftop greening, green wall (Note) and photovoltaic generation facilities as an environmentally conscious building developed based on the philosophy of “co-existence with the environment.” ・The property is an information transmission base having “Sankei Hall BREEZÉ” which inherits the DNA of “Sankei Hall,” a theater in Osaka which opened in 1952. (Note) “Green wall” refers to a surface of greened walls.

(2) Map of surrounding area

(3) Photo of Acquired Asset

(Property Number A-3) S-GATE NIHONBASHI-HONCHO (1) Characteristics of the Property ・The property is located in the Nihonbashi area where long-established shops, department stores and pharmaceutical companies have their stores and offices, and is also within walking distance from Mitsukoshimae Station on the Tokyo Metro Ginza Line and Hanzomon Line, which is the closest station, as well as Nihonbashi Station, Ningyocho Station and Shin-Nihonbashi Station, offering access to 4 stations and 6 lines. ・It is located at a corner lot facing Showa-dori Street with stately grid design (Note), boasting high visibility. ・“S-GATE” series are comfortable, safe, secure and environmentally conscious mid-sized office buildings developed, operated and managed by The Sankei Building Co., Ltd., and unified in design, specifications (performance) and service level for enriched BCP measures and tenant services in intangible aspects. ・Rental rooms have a ceiling height of 2,800 mm and completely individual air conditioners, and there are toilets with powder space and a rooftop terrace, realizing a comfortable office environment. As for BCP measures, the property boasts the same level of specifications and facilities as that of Class A buildings through efforts such as equipping emergency power generators, adopting a different-source double-circuit power-receiving system and establishing disaster prevention stockpile warehouses on each floor except the 1st floor despite being is a mid-sized building. (Note) “Grid design” refers to grid-shaped design adopted at the exterior of the building. The same hereafter.

(2) Map of surrounding area

(3) Photo of Acquired Asset

(Property Number A-4) S-GATE AKIHABARA (1) Characteristics of the Property ・Iwamotocho Station on the Toei Subway Shinjuku Line, the closest station, and Akihabara Station, the station used for transfer to Iwamotocho Station, are terminal stations whose surrounding areas have developed as one of the largest electric towns in the world and where the JR Yamanote Line, JR Keihin-Tohoku Line, JR Sobu Line, Tokyo Metro Hibiya Line and Tsukuba Express Line are available. It is also within walking distance from Bakurocho Station and Asakusabashi Station, offering access to 4 stations and 8 lines, and is situated in a highly convenient location not only from major areas in central Tokyo but also from commuter towns. ・The Akihabara area, which as a transportation hub is a traditional business concentration area, has grown as a business district (office district) and a large number of companies centering on manufacturers have their headquarters there. ・”S-GATE” series are comfortable, safe, secured and environmentally conscious mid-sized office buildings developed, operated and managed by The Sankei Building Co., Ltd., and unified in design and specifications (performance) and service level for enriched BCP measures and tenant services in intangible aspects. ・The property features an appearance with a stately grid design, and the rental rooms have a ceiling height of 2,800 mm and completely individual air conditioners, realizing a comfortable office environment. As for BCP measures, it has high specifications among buildings with the same size through efforts such as equipping emergency power generators, adopting a different-source double-circuit power-receiving system and establishing disaster prevention stockpile warehouses on each floor. In addition, it has an appropriate level of competitiveness in comparison with alternative competitive real estate properties as it is installed with a triple security system that is unlikely to be seen at buildings with the same size.

(2) Map of surrounding area

(3) Photo of Acquired Asset

(Property Number A-5) Hibiya Sankei Building (1) Characteristics of the Property ・The property is accessible via 3 stations and 7 lines including Hibiya Station, which is directly connected to the property through an underground passage, and is also within walking distance from the areas of Tokyo, Yurakucho and Ginza. ・It is an office building overlooking the Imperial Palace and Hibiya Park, and has a stone-based appearance and a stately design with a strong sense of art. It also has high visibility as it is located at the Hibiya intersection where Hibiya-dori Street and Harumi-dori Street cross. ・It is in an excellent location that is expected to enjoy greater status as a business center due to active redevelopment.

(2) Map of surrounding area

(3) Photo of Acquired Asset

(Property Number A-6) Hatchobori Sankei Building (1) Characteristics of the Property ・The property is in the Hatchobori area standing adjacent to the Yaesu area, a business district where companies have traditionally concentrated and grown and where Tokyo Station can be found. ・It is approximately a 3-minute walk to the west from Hatchobori Station on the Tokyo Metro Hibiya Line and is accessible via 4 stations and 5 lines including Takaracho Station on the Toei Asakusa Line and Kyobashi Station on the Tokyo Metro Ginza Line in addition to the closest station. It is also close to the entrance and exit of the Metropolitan Expressway and offers excellent traffic convenience. ・Although the building is approximately 53 years old, it underwent seismic base isolation work and large-scale renovation work. It has a regular-shaped site, a glass-walled appearance and a marble structure at the common area showing a certain grade. ・Raised floors have been adopted for the rental rooms and the property has mid-level competitiveness within the same demand and supply zone.

(2) Map of surrounding area

(3) Photo of Acquired Asset

(Property Number A-7) Toyo Park Building (1) Characteristics of the Property ・The closest station is Toyocho Station on the Tokyo Metro Line and the property offers excellent access to Otemachi Station and central Tokyo. ・The property is in the Toyocho area where many companies have their headquarters and large-scale office buildings can be found in the neighborhood. ・Rental rooms have a ceiling height of 2,520 mm, individual air conditioners and 100 mm of raised floors (excluding part of the 1st floor), generally meeting the recent needs of tenants, and the property has an appropriate level of competitiveness.

(2) Map of surrounding area

(3) Photo of Acquired Asset

(Property Number B-1) Hotel Intergate Tokyo Kyobashi (1) Characteristics of the Property ・The property is located at the Yaesu exit of JR Tokyo Station and is accessible via 3 stations and 3 lines namely the Tokyo Metro Ginza Line from Kyobashi Station, Tokyo Metro Yurakucho Line from Ginza Itchome Station and Toei Asakusa Line from Takaracho Station. In addition, it offers excellent access from Haneda Airport and Narita International Airport and high traffic convenience. ・The property is a value experience-type hotel with 200 guestrooms developed by The Sankei Building Co., Ltd. and operated and managed by GRANVISTA Hotels & Resorts Co., Ltd., a member of the Sankei Building Group. ・Offers excellent access to tourist spots in Tokyo such as Ginza and Asakusa, and is suitable for both business and tourism purposes. ・The property has single (approximately 13 m2), double (approximately 15 m2 to 19 m2) and twin (approximately 24 m2 to 28 m2) guestrooms, and a specification that sufficiently meets customer needs in an area where demand for both tourism and business can be expected.

(2) Map of surrounding area

(3) Photo of Acquired Asset