Logo Color (Header, Footer, Cover Page) 210-35-42 0.75PT 23-70-158 150-150-150 220-221-222 Tint Color Chart Color 252-222-221 237-20-91 212-227-245 0-125-198 254-240-217 250-166-26 218-212-229 162-147-191 197-228-237 109-188-209 227-241-229 115-185-123 Line Color 243-133-142 96-163-217 251-192-95 Nippon REIT Investment Corporation 239-171-255 Investor Presentation 138-228-226 for the 8th Period (Ended June 30, 2016) 255-161-97 August 17, 2016 166-166-166 Logo Color (Header, Footer, Cover Page) 210-35-42 0.75PT 23-70-158 150-150-150 1 Executive Summary 220-221-222 Highlights of Financial Results 3 Highlights of Achievements in the 8th Period (June 2016) and Summary of Growth Strategies 4 Tint Color Chart Color 252-222-221 237-20-91 2 Financial Results for the 8th Period (June 2016) 212-227-245 0-125-198 Financial Results for the 8th Period (June 2016) 6 Financial Forecast for the 9th Period (Dec. 2016) 7 Financial Forecast for the 10th Period (June 2017) 8 254-240-217 250-166-26 Track Record and Forecast of Normalized DPU 9 218-212-229 162-147-191 3 Growth Strategies 197-228-237 109-188-209 Summary of Growth Strategies ① NRT’s portfolio management 11 227-241-229 115-185-123 ② Medium to Long Term Management Strategies, and Effective Engineering Management 12 External Growth Strategy Line Color ① AUM Target 13 ② Risk Diversification 14 243-133-142 ③ Summary of Bridge Funds (1)-(3) 15 Internal Growth Strategy 96-163-217 ① Occupancy Rate Trends and Forecasts 19 ② Tenant Move-in and Move-out, and Rent gap trend 20 251-192-95 ③ Track Record and schedule of Rent Renewals 21 ④ Status of rent Increase (Decrease) upon Contract Renewals, and Rent Increase Target 22 ⑤ Plan and Budget of Engineering Management 23 239-171-255 ⑥ Examples of Engineering Management 24 ⑦ Achievements of Profitability (NOI) Enhancement through Engineering Management 25 138-228-226 Financial Strategy ① Financial Status as of the 8th Period, and Historical and Forecast LTV 27 255-161-97 ② Debt Maturity Extension Maintaining the Balance with Cost, and Debt Diversification 28 166-166-166 1 Logo Color (Header, Footer, Cover Page) 210-35-42 0.75PT 23-70-158 150-150-150 220-221-222 Tint Color Chart Color 252-222-221 237-20-91 212-227-245 0-125-198 254-240-217 250-166-26 218-212-229 162-147-191 197-228-237 109-188-209 1. Executive Summary 227-241-229 115-185-123 Line Color 243-133-142 96-163-217 251-192-95 239-171-255 138-228-226 255-161-97 166-166-166 2 Logo Color (Header, Footer, Cover Page) 210-35-42 Highlights of Financial Results 0.75PT 23-70-158 150-150-150 Financial Results Forecast Forecast 220-221-222 (8th Period (June 2016)) (9th Period (Dec. 2016)) (10th Period (June 2017)) Tint Color Chart Color Operating Revenue mm ¥6,775 mm ¥6,685 mm 252-222-221 237-20-91 ¥ 6,607 Operating Income ¥ 3,287 mm ¥3,371 mm ¥3,400 mm 212-227-245 0-125-198 Ordinary Income ¥ 2,944 mm ¥2,894 mm ¥2,913 mm 254-240-217 250-166-26 Net Income ¥ 2,944 mm ¥2,893 mm ¥2,913 mm 218-212-229 162-147-191 DPU ¥ 7,519 ¥7,385 ¥7,436 197-228-237 109-188-209 227-241-229 115-185-123 DPU Transition Growth in NAV per Unit(1) Line Color (¥) Original Actual Forecast (¥) forecast 243-133-142 8,000 350,000 Increased by 24.6％ since the 4th period 7,581 7,519 7,386 7,436 300,000 96-163-217 7,109 6,827 250,000 7,252 7,062 7,165 251-192-95 7,002 200,000 6,500 309,614 150,000 303,236 306,444 6,527 265,668 239-171-255 248,482 100,000 P26 138-228-226 50,000 5,000 0 5th 6th 7th 8th 9th 10th 255-161-97 IPO 5th 6th 7th 8th Period period period period period period Period period period period (Dec. 2014) (June 2015) (Dec. 2015) (June 2016) (Dec. 2016) (June 2017) (Forecast) (Forecast) (Dec. 2014) (June 2015) (Dec. 2015) (June 2016) 166-166-166 3 Logo Color TO : MUMSS 様 (Header, Footer, 本ページにつきご対応お願い申し上げます。 Cover Page) 210-35-42 Highlights of Achievements in the 8th Period and Summary of Growth Strategies 0.75PT 23-70-158 th 150-150-150 Highlights of achievements in the 8 period Summary of growth strategies 220-221-222 External Keep the target NOI yield(1) and Achieve AUM Target of ¥300bn by 2018～2020 Tint Color Chart Color Growth ■ Steady increase in pipeline (10 properties, ¥22.5bn (2)) ■ Disciplined external growth 252-222-221 237-20-91 Strategy > To achieve mid-and long-term target while keeping the same-level NOI yield and sticking to Additional acquisition of Godo Kaisha Nicolas Capital 6（1property, ¥1.3bn) the acquisition policy (location (area Establishment of Godo Kaisha Nicolas Capital 8 and 9 (7 properties, ¥10.9bn) competitiveness), ratio of properties located in 212-227-245 0-125-198 metropolitan areas, tenant diversification, rent gaps, scrutiny of building conditions) 254-240-217 250-166-26 Internal Strengthened profitability with improved occupancy rate and rent increase, enhanced profitability and competitiveness through engineering management Growth 218-212-229 162-147-191 Strategy ■ Occupancy rate on recovery track th th ■ Further rise in the occupancy rate 7 period 96.8％ → End of Feb. 2016 94.3% → 8 period 95.9％ 197-228-237 109-188-209 ■ Further improvement in cash flow ■ Steady increase in rent >Shorten down time and free- 227-241-229 115-185-123 Rent revision for 2,476 tsubo (19.5％ of total rentable area(3)） rent periods Overall rent increase(4)：7th 0.8％ → 8th 1.7％ ■ 1% or more overall rent increase Line Color ■ Enhanced competitiveness of ■ Execution of engineering management portfolio 243-133-142 Proper review of repair plans and reduction in capital expenditure and expenses >Execution of effective engineering to achieve strengthened profitability, cost reduction and higher tenant satisfaction management 96-163-217 251-192-95 Financing Further stabilization of finance status in consideration of interest costs Strategy ■ Strengthening our financial stability with reduced 239-171-255 interest costs under negative interest circumstances ■Further stabilization of finance status 138-228-226 LTV(5) 7th period 46.1％ → 8th period 45.9％ >Shift to longer-term borrowings th th Fixed interest rate ratio 7 period 50.2％ → 8 period 90.3％ with fixed interest rates 255-161-97 Average borrowing cost 7th period 0.90% → 8th period 0.84% (incl. upfront fee and agent fee) 166-166-166 4 Logo Color (Header, Footer, Cover Page) 210-35-42 0.75PT 23-70-158 150-150-150 220-221-222 Tint Color Chart Color 252-222-221 237-20-91 212-227-245 0-125-198 254-240-217 250-166-26 218-212-229 162-147-191 197-228-237 109-188-209 2. Financial Results for the 8th Period (June 2016) 227-241-229 115-185-123 Line Color 243-133-142 96-163-217 251-192-95 239-171-255 138-228-226 255-161-97 166-166-166 5 TO:財務経理部 記載内容の確認・エビデンス提供をお願いします Logo Color (Header, Footer, Cover Page) 210-35-42 Financial Results for the 8th Period (June 2016) 0.75PT 23-70-158 150-150-150 Income statement summary for the 8th fiscal Net income changing factors(4) (vs. 220-221-222 period (June 2016) Forecast) Tint Color Chart Color Unit: ¥million Unit: ¥million 3,000 8th Period 8th Period 252-222-221 237-20-91 38 Forecast Actual 2,950 19 (14) (b-a) 27 as of Feb.18, 2016 as of June 16, 2016 2,900 212-227-245 0-125-198 52 (a) (b) ④ ⑤ ⑥ 2,850 15 ③ 254-240-217 250-166-26 Operating Revenues 6,596 6,607 10 2,800 ① ② Operating Income 3,189 3,287 98 2,750 Actual 218-212-229 162-147-191 2,944 2,700 Forecast Ordinary Income 2,807 2,944 136 2,650 2,807 197-228-237 109-188-209 2,600 Net Income 2,807 2,944 137 227-241-229 115-185-123 2,550 2,500 Line Color DPU 7,165円 7,519円 ¥354 ① Increase in rental revenues 15 243-133-142 NOI 4,612 4,713 100 ② Improvement of utilities balance 52 ③ Increase in other operating revenues 27 96-163-217 NOI Yield(1) 4.5% 4.6％ (Dividend income, Miscellaneous income) 251-192-95 FFO per Unit(2) - ¥9,414 ④ Decrease of property-related expenses 19 (Repair expenses, Depreciation, Property taxes, etc.) 239-171-255 NAV per Unit - ¥309,614 ⑤ Increase in other operating expenses (14) (Asset management fee, etc.) 138-228-226 Unrealized Gains(3) - 9,030 ⑥ Decrease of non-operating expenses etc. 38 255-161-97 Days 182 182 (Financing costs, etc.) 166-166-166 6 Logo Color (Header, Footer, Cover Page) 210-35-42 Financial Forecast for the 9th Period (Dec. 2016) 0.75PT 23-70-158 150-150-150 Financial forecast for the 9th fiscal period Net income changing factors 220-221-222 (Dec. 2016) (vs. 8th period actual) Unit：¥million Tint Color Chart Color Unit：¥million 3,200 (6) 60 (58) 252-222-221 237-20-91 th 8th period 9 period (reference) 3,100 107 th (19) (121) actual forecast (b-a) 9 period ③ as of Aug.16, 2016 212-227-245 0-125-198 (a) forecast 3,000 ② ④ (b) as of Feb.18, 2016 ⑤ (13) 2,900 ① 254-240-217 250-166-26 ⑥ ⑦ Operating 6,607 6,775 168 6,680 2,800 Revenues 218-212-229 162-147-191 2,700 2,944 2,893 Operating （8th Period） (9th Period) 3,287 3,371 83 3,274 Income 2,600 197-228-237 109-188-209 Ordinary 2,500 2,944 2,894 (50) 2,744 227-241-229 115-185-123 Income 2,400 Line Color Net Income 2,944 2,893 (50) 2,743 ① Increase in rental revenues 107 ② Improvement of utilities balance 60 243-133-142 ③ Decrease of other operating revenues (6) (Dividend income, Miscellaneous income) 96-163-217 DPU ¥7,519 ¥7,385 (134) ¥7,002 ④ Increase in property-related expenses (58) 251-192-95 NOI 4,713 4,822 109 4,728 (Repair expenses, Depreciation, etc.) ⑤ Increase in other operating expenses (19) 239-171-255 - (Asset management fee, etc.) NOI Yield 4.6％ 4.7％ - ⑥ Decrease of non-operating income (121) 138-228-226 - (Non-occurrence of consumption tax refund, etc.) Days 182 184 - 255-161-97 ⑦ Increase in non-operating expenses, etc.