Presentation of Financial and Other Information In this document: Š References to “Japanese GAAP” are to generally accepted accounting principles in Japan. References to “U.S. GAAP” are to generally accepted accounting principles in the United States. References to “IFRS” are to the International Financial Reporting Standards. Unless otherwise stated, we have prepared our financial statements in accordance with Japanese GAAP. Š All financial and other information presented in this document is unaudited. We have prepared our interim financial statements, which are not included in this document, for the period from September 11, 2017, the date of our incorporation to February 28, 2018 in accordance with Japanese GAAP, which differs from generally accepted accounting principles in other countries, such as the IFRS or U.S. GAAP. Our forecast financial information that appears in “Forecasts for the Fiscal Periods Ending August 31, 2018, February 28, 2019 and August 31, 2019” has been prepared on a basis consistent with accounting policies to be applied in preparing our financial statements in accordance with Japanese GAAP. Š References to “yen” and “¥” are to the lawful currency of Japan. Š We have truncated certain financial and operational data amounts to the relevant digit, and rounded percentages to the nearest decimal point, unless otherwise indicated. Therefore, numbers in tables may not add up to totals. Š Our fiscal periods cover every six months ending on the last day of February and August of each year, except that our first fiscal period began on September 11, 2017 (the date of our incorporation) and will end on August 31, 2018. Š References to “we”, “our”, “us”, and similar references are to Takara Leben Real Estate Investment Corporation. Š References to the “Asset Manager” are to Takara PAG Real Estate Advisory Ltd. Š References to the “Sponsors” are to Takara Leben Co., Ltd., PAG Investment Management Limited, Kyoritsu Maintenance Co., Ltd. and Yamada Denki Co., Ltd. Š References to “Takara Leben” are to Takara Leben Co., Ltd. Š References to the “Takara Leben Group” are to an enterprise group composed of Takara Leben and its subsidiaries (including Leben Community Co., Ltd.) and affiliates. Š References to “PAG” are to PAG Investment Management Limited. Š References to “PAG Group” are to a group of companies having its head office in Hong Kong to which PAG belongs. Š References to “Kyoritsu Maintenance” are to Kyoritsu Maintenance Co., Ltd. Š References to the “Kyoritsu Maintenance Group” are to a group of companies composed of Kyoritsu Maintenance and its subsidiaries. Š References to “Yamada Denki” are to Yamada Denki Co., Ltd. 1 Š References to the “Yamada Denki Group” are to a group of companies composed of Yamada Denki and its subsidiaries. Š References to the “Sponsor Group” are to Takara Leben Group, PAG Group, Kyoritsu Maintenance Group and Yamada Denki Group. Š References to “Sumitomo Mitsui Trust” are to Sumitomo Mitsui Trust Bank, Limited. Š References to “tsubo” are to the Japanese unit of area measurement equal to the size of two standard tatami mats, or approximately 3.3058 m2. Š References to the “ITA” are to the Act on Investment Trusts and Investment Corporations of Japan and the regulations thereunder. Š References to “J-REIT” or “J-REITs” are generally to listed Japanese investment corporations (to¯shi ho¯jin) incorporated pursuant to the ITA that invest primarily in real estate or certain real-estate related assets. Š References to the “global coordinator” are to SMBC Nikko. Š References to the “Japanese joint lead managers” are to SMBC Nikko and Mizuho Securities Co., Ltd. Š References to the “international manager” are to SMBC Nikko Capital Markets Limited. Š References herein to “the offerings” are to the international offering and the Japanese offering described herein, unless the context otherwise requires. Š References to “Tokyo metropolitan area” are to Tokyo, Kanagawa, Chiba and Saitama prefectures. Š References to “Nagoya metropolitan area” are to Aichi, Gifu and Mie prefectures. Š References to “Osaka metropolitan area” are to Osaka, Kyoto and Hyogo prefectures. Š References to “Fukuoka metropolitan area” are to Fukuoka prefecture. Š References to Japan’s “four major metropolitan areas” are to the Tokyo, Nagoya, Osaka and Fukuoka metropolitan areas. Š References to Japan’s “major regional cities” are to ordinance-designated cities, core cities, specially- designated cities and prefectural capital cities, excluding those included in Japan’s four major metropolitan areas. References to “ordinance-designated cities” are to the cities of Sapporo, Sendai, Niigata, Shizuoka, Hamamatsu, Okayama, Hiroshima and Kumamoto as of the date of this document. References to “core cities” are to Japanese cities that have a population of at least 200,000 persons and are designated as such by an ordinance under the Local Autonomy Act of Japan. References to “specially-designated cities” are to Japanese cities that had a population of at least 200,000 persons and were designated as such by an ordinance under the same act at the time of the abolishment of the system of specially-designated cities as of April 1, 2015. Forward-looking Statements This document includes forward-looking statements. In some cases, you can identify forward-looking statements by terms such as “aim”, “anticipate”, “believe”, “estimate”, “expect”, “forecast”, “intend”, “may”, “plan”, “potential”, “predict”, “seek”, “should” or “will”, by the negative of these terms or by other similar terminology. These statements discuss expectations, identify strategies, contain projections of our financial condition or results of operations or state other forward-looking information. In particular, this document contains our forecasts for our revenues, profit and the distributions expected to be made on our units in “Forecasts for the Fiscal Periods Ending August 31, 2018, February 28, 2019 and August 31, 2019” and forecasted net operating income yields for the properties in our anticipated initial portfolio in “Anticipated Initial Portfolio—NOI Yield”, all of which are highly speculative. The forward-looking statements in this document are subject to various risks, uncertainties and assumptions about our business. Potential risks and uncertainties that could cause our actual results to differ materially from our expectations include, without limitation: 2 Š any adverse conditions in the Japanese economy; Š our lack of operating history; Š the lack of full financial statements for any of the 27 properties in our anticipated initial portfolio; Š our ability to acquire properties to execute its growth strategy; Š the effect of changes in prevailing interest rates, including as a result of additional monetary easing by the Bank of Japan; Š inability of us to close all or any of our anticipated acquisitions of properties; Š competition for tenants for properties and difficulty of finding replacement tenants; Š high geographic concentration of our real estate portfolio in certain areas, especially the Tokyo metropolitan area; Š our ability to promptly sell properties in response to changing economic, financial or other conditions; Š any natural or man-made disaster, such as an earthquake, acts of war or terrorism or other casualty event; Š our access to financing necessary to expand its property portfolio; Š our lack of control over operating costs; Š the performance of us and other key third-party service providers, to which we are required to assign its business, administrative and management functions; and Š potential legislative, regulatory and accounting changes in Japan. In addition to the foregoing, important risks and factors that could cause our actual results to differ materially from our expectations are discussed under “Risk Factors” and elsewhere in this document. Furthermore, with respect to any forward-looking statements in “Forecasts for the Fiscal Periods Ending August 31, 2018, February 28, 2019 and August 31, 2019” and “Anticipated Initial Portfolio—NOI Yield”, prospective investors must read them together with all assumptions presented in such section. Our expectations expressed in these forward-looking statements may not be achieved, and our actual results could differ materially from and be worse than our expectations. We do not intend, and disclaim any duty, to update or revise any forward-looking statements contained in this document to reflect new information, future events or otherwise. We caution you not to place undue reliance on the forward-looking statements contained in this document. 3 RISK FACTORS An investment in our units involves significant risks. You should consider carefully the risk factors described below as well as other information contained in this document before making any investment decision. Property and Business Risks Any adverse conditions in the Japanese economy could adversely affect us We are a J-REIT listed on the Tokyo Stock Exchange and engaged in the management and leasing of selected office, residential, hotel, and retail and other properties located in Japan. As such, our business performance and the cash distributions we make depend largely on the performance of the Japanese economy as a whole, the outlook for which remains highly uncertain and involves factors beyond our control. A number of macroeconomic factors may adversely affect the Japanese economy, including its real estate industry, such as: Š volatility in market interest rates and Japanese and international stock markets; Š