th Period INVESTOR PRESENTATION27- Appendix - Fiscal Period ended December 31, 2019 Securities Code 3227 https://www.midcity-reit.com/en/ * Fractions of the stated amounts are cut off and those of the ratios and years are rounded off unless otherwise indicated. Therefore, the aggregation of the figures Index stated hereupon are not necessarily identical to the total. 1. ABOUT MCUBS MidCity Investment Corporation • Who We Are 4 • Growth in existing property NOI 34 • History 5 • Revisions and gaps in rents 35 • The asset management company: • Diversification of tenant contract types 36 Mitsubishi Corp.- UBS Realty Inc. (MC-UBS) 6 • Appraisal value by property 37 • Investment policy 7 • Unrealized gain/loss 38 • Track record 8 • Portfolio data (as of the end of Dec. 2019) 39-40 • Portfolio summary 9 • Revenue and expenses by property • Portfolio comparison with other Office REITs 10 (Fiscal period ended Dec. 31, 2019) 41-42 • Industry-leading acquisition capability 11 • Portfolio map / Portfolio overview 43-53 • Selected investment utilizing MidCity’s advantage 12 • Acquired Properties 55-58 • Asset management with a focus on tenant satisfaction & Stable financial base 13 4. FINANCING STRATEGY • Major financing-related figures and investment corporation bonds 60 • ESG-conscious portfolio management 14 • Financial status 61-62 2. FINANCIAL HIGHLIGHTS & FORECASTS FOR THE 28TH AND 29TH PERIOD • Outstanding borrowings (as of the end of Jan. 2020) 63-64 • Overview of financial results • Lender composition (as of the end of Jan. 2020) 65 for the fiscal period ended Dec. 31, 2019 (27th Period) 16-17 • Maturity ladder (as of the end of Jan. 2020) 66 • 27th Period financial results – Comparison to previous period 18 th 5. MARKET ENVIRONMENT • 27 Period financial results – Comparison to revised forecasts 19 • Office market data (Tokyo 23 districts) 69-70 th • 27 Period financial results – Breakdown of change from previous period 20 • Office market data (Nagoya) 71-72 • Balance sheet 21 • Office market data (Osaka) 73-74 • Income statement 22 • Office buildings to be supplied in the Osaka business area 75 • Forecasts for the 28th and 29th Periods 23 • Breakdown of change from previous period 24 6. APPROACH TO ESG • Internal reserves 25 • Environmental initiatives 78 • Repair expenses and capex 26 • Social initiatives 79-80 • Governance initiatives 81 3. PORTFOLIO • Efforts to expand investor base 82 • Portfolio overview (as of the end of Dec. 2019) 29 • Portfolio profitability 30 7. OTHER TOPICS • Portfolio operation 31 • Unitholder details 84 • Occupancy by property 32 • Overview of asset management company 85 • Monthly rents 33 • Historical unit price 86 2 1. ABOUT MCUBS MidCity Investment Corporation 3 Who We Are MC-UBS office-focused REIT, aiming to enhance unitholder value Area-diversified portfolio primarily made up of medium-sized office buildings 1 Industry-leading acquisition capability 2 Asset management with a focus on tenant satisfaction 3 Stable financial base 4 ESG-conscious portfolio management Name MCUBS MidCity Investment Corporation (“MidCity”) TSE Code 3227 Fund listing August 29, 2006 Fiscal period June and December Asset Management Company Mitsubishi Corp.- UBS Realty Inc. (“MC-UBS”) Note: Mitsubishi Corp.- UBS Realty Inc. merged with the asset management company: MCUBS MidCity Inc. on July 1, 2019 4 History Investment Corporation August June MID REIT, Inc. listed Trade name changed to MCUBS MidCity Investment Corporation The asset management company September December April April April MID REIT Management The Kansai Electric Power MC-UBS acquired MC-UBS MC-UBS made the asset Co., Ltd. was established Company, Incorporated 65% share of the acquired an management company a sponsor: became the largest asset management additional wholly-owned subsidiary MID Urban Development Co., Ltd. (formerly, Matsushita Kosan) shareholder of MID Urban company 20% share of Development Co., Ltd. the asset July (currently, Kanden Realty & changed the trade management MC-UBS merged with Development) name to company MCUBS MidCity Inc. MCUBS MidCity Inc. 5 The asset management company : Mitsubishi Corp.- UBS Realty Inc. (MC-UBS) 18 years of experience in operating J-REITs MC-UBS Group operates three REITs: MCUBS MidCity, JRF and IIF Largest J-REIT AUM of 1.4 tn. yen One of the largest buyers of commercial real estate in Japan After merger of the asset management company Sponsor The asset management company Total number of employees MC-UBS （ ） New 150 employees Retail Division Industrial Division Office Division Mitsubishi Corp.- UBS Realty Inc. Office Division 20 employees were included as of Jan 1, 2020 （ ） Japan Retail Fund Industrial & Investment corporation Investment Corporation Infrastructure Fund Investment Corporation (Specialize in retail properties) (Specialize in industrial properties) 6 Investment policy Focusing on office buildings in three major metropolitan areas 26properties JPY bn 287.6 *As of end of Feb. 2020 Target areas: Three major metropolitan areas (Tokyo, Osaka and Nagoya) Three major metropolitan areas (Tokyo, Osaka and Nagoya) Other areas 70% or more 30% or less Target properties (asset type): Office Buildings Real estate other than office properties Office (Hotels and serviced apartments) Tokyo area % or more % or less Nagoya area 70 30 Osaka area * ex. commercial facilities and industrial real estate 7 Track record Distribution per unit NAV per unit 2,751yen 98,857yen DPU growth + % Asset 2,040yen NAV per unit growth + % 64.1 disposition 55.7 yen th th (17th period vs. 27th period) 2,545yen related 816yen 2,030 (17 period vs. 27 period) 93,715yen Asset 1,955yen disposition 89,671yen related 762yen 86,050yen ～1,935yen 84,785yen 1,684yen 1,783yen 1,622yen ～ 81,211yen 1,580yen ～ 1,456yen 1,486yen 75,319yen 1,420yen 72,690yen 1,288yen 68,970yen 64,356yen 1,191yen 63,504yen 年 年 年 年 年 年 年 年 年 年 年 Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. 2014Dec. 2015Jun. 2015Dec. 2016Jun. 2016Dec. 2017Jun. 2017Dec. 2018Jun. 2018Dec. 2019Jun. 2019Dec. 12月期 6月期 12月期 6月期 12月期 6月期 12月期 6月期 12月期 6月期 12月期 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 2020 2020 第201417期 第201518期 第201519期 第201620期 第201621期 第201722期 第201723期 第201824期 第201825期 第201926期 第201927期 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th 29th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period (E) (E) NAV per unit includes reserve for reduction entry ＊ 8 Portfolio summary Focus on medium-sized office buildings in the three major metropolitan areas Portfolio by asset type <Based on acquisition price> ■ Hotel 4.7% Retail facilities Portfolio by area <Based on acquisition price> Portfolio by property size <Based on acquisition price>(Note) 10.0% ■ ■ Nagoya area Others The five central wards of Tokyo 2.7% (Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku 1.7% and Shibuya-ku) 24.1% ‐10,000 100,000 ‐ Office ㎡ ㎡ 85.3% 30.8% 24.3% Osaka area Tokyo area 34.2% 61.4% 50,000 ‐ 10,000 ‐ 100,000㎡ 50,000㎡ ㎡ ㎡ 9.2% Other 35.7% Tokyo area 37.3% Note: TK interest of Nagoya Lucent Tower is not included. 9 Portfolio comparison with other Office REITs Tokyo area properties are diversified between central and Portfolio primarily made up of medium-sized office surrounding areas, strong at properties in Osaka area buildings By area Based on acquisition price By property size Based on acquisition price ＜ （ ） ＞ ＜ （ ） ＞ 0% 20% 40% 60% 80% 100% 0% 20% 40% 60% 80% 100% MidCity 1.7% MidCity 24.1% 37.3% 34.2% 24.3% 9.2% 35.7% 30.8% 2.7% A A B B C C D D E E F F G G H H Tokyo’s 5 central wards Other Tokyo area Osaka area (Only Osaka) Nagoya area Others 100,000 ‐ 50,000 ‐100,000 10,000 ‐50,000 ‐10,000 ㎡ ㎡ ㎡ ㎡ ㎡ ㎡ Note: Created by the Asset Management Company based on data disclosed on each J-REIT HP as of Jan. 31, 2020. Office REITs refer to office-specialized REITs listed in ARES J-REIT DIGEST. Diversification by property size is based on total floor space of all of the properties held by each J-REIT (main buildings only). 10 1 Industry-leading acquisition capability Trend of asset size After MC-UBS participation New Acquisition Dispositions Total Asset Size bn. yen bn. yen bn. yen (acquisition price basis) 167.1 37.1 287.6 Number of properties 18properties 4properties 26properties Average NOI yield after depreciation 3.7% 2.0% 3.6% Aim for Total unrealized gain/loss + 17.8 bn. yen - 2.2 bn. yen + 23.8 bn. yen 4th PO 300.0 bn. yen Nov. 2019 Asset acquired after MC-UBS participation 3rd PO ■ Asset acquired before MC-UBS participation Feb. 2018 ■ 2ndPO 1st PO Feb. 2017 Jul. 2015 Acquisition of Acquisition of 1property 6 properties bn. yen Acquisition of Acquisition of 7.4bn. yen 51.9 Acquisition of Acquisition of 4properties 4properties Acquisition of (Incl. 1 additional (Incl. 1 additional 1property 1 property 3property acquisition) acquisition) 22.1bn. yen 4.0bn. yen 27.0bn. yen 31.3bn. yen 23.2bn. yen Disposition of Disposition of properties Disposition of 2 1property (1property (45% part of 2properties disposed 55%) 10.2bn. yen property remaining) 15.8bn. yen 11.0bn. yen Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. Jun. Dec. 2014 2015 2015 2016 2016 2017 2017 2018 2018 2019 2019 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th Period Period Period Period Period Period Period Period Period Period Period ¥157.6 bn. ¥165.1 bn. ¥217.1 bn. ¥217.1 bn. ¥217.1 bn. ¥238.1 bn. ¥238.1 bn. ¥261.3 bn. ¥267.6 bn. ¥260.6 bn. ¥287.6 bn.