Fiscal Period Ended March 2021 (38th Fiscal Period) Information Package (Securities Code: 8961) https://www.mt-reit.jp/en/ (Asset Management Company) MEMO Contents 1. Overview of the Settlement and Forecasts 3 5. Reference 32 Fiscal Period Ended March 2021 Settlement Highlights 4 Balance Sheets 33 Overview of the Settlement for the Fiscal Period Ended March 2021 5 Statements of Income and Retained Earnings 34 Factors for Change in Distributions per Unit 6 Statement of Cash Distributions / Statements of Cash Flows 35 (the fiscal period ended March 2021) Changes in Indicators 36 Forecasts for the Fiscal Period Ending September 2021 7 Factors for Change in Distributions per Unit 8 Changes in Asset Size, LTV and Distribution Per Unit 37 (the fiscal period ending September 2021) Property Portfolio List as of the End of the Fiscal Period 38 Forecasts for the Fiscal Period Ending March 2022 9 Appraisal Values of Portfolio Properties at the Fiscal Period-End 39 2. Operation Status 10 Changes in Occupancy Rate 40 External Growth (Recognition of Conditions and Future Policies) 11 Overview of Occupancy Rate and Lease Contracts at the Fiscal 41 Asset Replacement (Sale of Part of the Tokyo Shiodome Building and 12 Period-End Purchase of Kamiyacho Trust Tower) Portfolio Summary and Breakdown of Property-Related 42 New Property Acquisition (Kamiyacho Trust Tower) 13 Revenues/Expenses Internal Growth (Recognition of Conditions and Future Policies) 14 Interest-Bearing Liabilities 45 Internal Growth (The present leasing status of the Tokyo Shiodome 15 Investors 46 Building/Situation of Rent Revision for Six Office Buildings) Changes in Unit Prices 47 Future response policy regarding Shinbashi Ekimae MTR Building 16 Financial Status (Management Results for the Fiscal Period Under Review 17 Changes in Vacancy Rate and Rent per Unit in Major Cities 48 and Loan Repayment Schedule Diversification) Asset Management Company Remuneration Methods 49 Financial Status (Status of Interest-Bearing Liabilities and Rating) 18 3. Initiatives Related to ESG 19 Disclaimer / Contact Information Initiatives Related to ESG 20 4. Characteristics of MORI TRUST Sogo Reit, Inc. 28 Basic Policy and Characteristics of MORI TRUST Sogo Reit, Inc. 29 Mori Trust Group 31 Disclaimer: This document is intended to provide information about the business performance and strategies of MORI TRUST Sogo Reit, Inc. (MTR). It is not intended and should not be construed as an inducement or invitation to purchase or invest in the products or investment units of MTR. We caution readers to contact their securities company representative if intending to acquire or sell any of MTR’s investment products or investment units, and to undertake investment decisions subject to individual determination. Statements in this document that are not historical facts are “forward- looking statements.” While MTR takes all reasonable care in the preparation of this document, it does not guarantee the accuracy and completeness of its content. Readers are also cautioned that the contents of this document may be changed or deleted without prior notice. 2 1. Overview of the Settlement and Forecasts 3 Fiscal Period Ended March 2021 (38th Fiscal Period) Information Package Fiscal Period Ended March 2021 Settlement Highlights 1. Overview of the Settlement and Forecasts Distribution Per Unit ¥3,875 （up ¥43 vs. the fiscal period ended September 2020, up ¥53 vs. forecast） As of March 31, 2021 (change from the previous fiscal period in parentheses) Asset Debt Balance of interest-bearing debt: ¥157.0 billion Number of property: 15 properties (–) (up ¥2 billion) Average interest rate for borrowings during fiscal period: 0.45% (down 0.03%) Asset size: ¥324.0 billion (–) (Note 1) LTV: 47.5% (up 0.4%) Occupancy rate: 99.3% (down 0.7%) Long-term rating of issuers: AA (stable) * Sublease basis 98.6% (down 1.2%) (Note 2) / Japan Credit Rating Agency, Ltd. Appraisal values of portfolio properties at the fiscal Equity period end: ¥342.5 billion (up ¥0 billion) Unrealized profit: ¥37.0 billion (up ¥0.7 billion) (Note 3) Number of units issued: 1,320,000 units (–) NAV per unit: ¥149,382 (up 0.4%) Investment ratio: [by area] Tokyo metropolitan area 80.2% (–) (Note 4) [by use] Office building 71.2% (–) Investment unit price: ¥153,300 / closing price on March 31, 2021) (Note 1) Asset size is the total acquisition price. (Note 2) For the properties that adopt the master lease contract with the system of linking rental revenue with rents under the sublease contract or the master lease contract of the pass-through type, the occupancy rate calculated based on the occupancy rate under the sublease contract is stated. (Note 3) Unrealized profit is the difference between total appraisal value at the end of the fiscal period and total book value at the end of the fiscal period. (Note 4) NAV per unit: (Year-end net asset value + Unrealized profit and loss) + Number of investment units issued 4 Fiscal Period Ended March 2021 (38th Fiscal Period) Information Package Overview of the Settlement for the Fiscal Period Ended March 2021 1. Overview of the Settlement and Forecasts Both income and expenses decreased due to a decrease in the use of ▮ Main factors in change utilities by tenants as a result of the COVID-19 pandemic. The decrease in expenses offset the fall in income, contributing to an overall increase in Vs. previous fiscal period (Unit: Million yen) profit. Operating revenues Distribution per unit was ¥3,875, up ¥43 period on period and ¥53 higher ● Impact mainly from tenant vacation and new occupancy -82 than the forecast, primarily thanks to a decrease in repair expenses. ● Decrease in utilities revenues due to a fall in use by tenants -24 primarily due to COVID-19 ● Contract cancellation fees received from tenants 11 Operating expenses (Unit: Million yen) ● Increase in repair expenses 87 ● Increase in property management fees (brokerage fees, etc.) 22 Period ended Period ended Period ended ● Decrease in utilities expenses due to a fall in use by tenants -38 September March 2021 March 2021 Change from Vs. previous primarily due to COVID-19 2020 forecast actual the previous fiscal period ● Decrease in depreciation and amortization -181 actual forecast (A) (B) (C) (C-A) (C-B) (Depreciation/amortization periods of some assets ended.) ● Decrease in asset management fees -7 Operating revenues 8,882 8,801 8,789 - 92 - 11 Rental revenues (a) 8,882 8,801 8,789 - 92 - 11 Non-operating revenues Operating expenses 3,445 3,392 3,325 - 120 - 67 ● Insurance claim income 35 Property-related expenses (b) 2,991 2,946 2,880 - 111 - 66 Non-operating expenses Property and other taxes 966 964 964 - 1 － ● Work covered by insurance 25 Overhead expenses 716 853 788 71 - 64 ● Decrease in interest paid -19 Depreciation (c) 1,308 1,128 1,126 - 181 - 1 Vs. forecast Selling, general and administrative expenses 453 446 445 - 8 - 1 Profits and losses from real Operating revenues (d)=(a)-(b) 5,890 5,854 5,909 19 55 estatebusiness ● Utilities revenues fell below the forecast due to a decrease in use Earnings before depreciation -28 (d)+(c) 7,199 6,983 7,036 - 162 53 and amortization (NOI) by tenants largely due to COVID-19 ● Increase above forecast largely due to tenant occupation 11 Operating income 5,437 5,408 5,464 27 56 ● Increase due to contract cancellation fees received from tenants ４ Non-operating revenues 1 0 36 34 36 being above forecast Non-operating expenses 379 362 385 5 22 Operating expenses Ordinary income 5,059 5,045 5,116 56 70 ● Repair expenses fell below forecast -25 Profit before income taxes 5,059 5,045 5,116 56 70 ● Property management fees (brokerage fees, etc.) fell below -2 Income taxes - current 0100-0forecast Income taxes - deferred -0 － -0 0 -0 ● Utilities expenses fell below forecast due to a decrease in use by -35 Profit 5,058 5,044 5,115 56 70 tenants largely due to COVID-19 Non-operating revenues Total distribution 5,058 5,045 5,115 56 69 ● Insurance claim income 35 Distribution per unit (yen) 3,832 3,822 3,875 43 53 Non-operating expenses Total number of outstanding investment units 1,320,000 1,320,000 1,320,000 －－ ● Work covered by insurance 26 ● Interest paid fell below forecast -4 5 Factors for Change in Distributions per Unit Fiscal Period Ended March 2021 (38th Fiscal Period) Information Package (the fiscal period ended March 2021) 1. Overview of the Settlement and Forecasts Distribution per unit was up ¥43 from the previous fiscal period and up ¥53 from the forecast. (Unit: Yen) Insurance claim income 3,875 Other +¥43 +¥53 Decrease in 3,832 interest paid 3,822 Contract Decrease in asset Work covered cancellation management fees by insurance fees received from tenants Fluctuations in utilities Impact mainly revenues, etc from tenant vacation and new occupancy Increase in Decrease in depreciation repair and amortization expenses Increase in (Depreciation/amortization property periods of some assets management fees ended.) (brokerage fees, etc.) Period ended Period ended Period ended September 2020 March 2021 March 2021 Actual Actual Forecast Current Announced fiscal period November 2020 6 Fiscal Period Ended March 2021 (38th Fiscal Period) Information Package Forecasts for the Fiscal Period Ending September 2021 1. Overview of the Settlement and Forecasts Profit forecast was revised upward due to upward revision of rent income Forecast Distribution Per Unit through progress in leasing and property replacement and gains on sales (down ¥483 from the previous fiscal from property replacement. (Unit: Million yen) ¥3,392 period, up ¥392 vs. previous forecast) Period ended Previous New forecast March 2021 forecast for the fiscal ▮ Main factors in change actual for the fiscal period ending Vs.