MORI TRUST Sogo Reit, Inc. MORI TRUST Asset Management Co., Ltd. 9th Fiscal Period (April 1, 2006-September 30, 2006) Information Package This document should not be construed as a disclosure document prepared in accordance with the Securities Exchange Law. We caution readers to undertake investment decisions subject to individual determination. CONTENTSCONTENTS Part 1 Summary of 9th Fiscal Period 2 Part 2 Operating Strategies 10 Part 3 Reference 18 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 shares 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 shares, 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. PartPart 11 SummarySummary ofof 99th FiscalFiscal PeriodPeriod (Ended(Ended SeptemberSeptember 30,30, 2006)2006) Summary of 9th Fiscal Period Financial Highlights of 9th Fiscal Period (1) EightEight ConsecutiveConsecutive FiscalFiscal PeriodsPeriods ofof IncreasedIncreased RevenueRevenue anandd ProfitProfit z 9th fiscal period operating revenues: ¥5,489 million; net income: ¥3,691 million z Distribution per share: ¥23,075 (previous forecast: ¥22,850), an increase of ¥3,810 from the previous fiscal period z Maintained ROA* over 4% for the sixth consecutive period since public listing z ROA for 9th fiscal period: 4.84% (including gain on transfer of the Hitachi Headquarters Bldg.) * ROA = Income before income taxes ÷Total assets at the end of the period ×Annualized rate, PropPropertyerty TransfersTransfers andand AcquisitionsAcquisitions z May 29, 2006 ¾Hitachi Headquarters Bldg. Transfer ―Transfer Price: ¥42,000 million ¾Akasaka-mitsuke MT Bldg. Acquisition ― Acquisition Price: ¥27,000 million z September 20, 2006 ¾Hotel Okura Kobe Acquisition ― Acquisition Price: ¥19,000 million SustaineSustainedd ImprovementImprovement inin HighHigh OccupancyOccupancy RatesRates z Occupancy rate for entire portfolio: 99.9% z Master leases maintain high occupancy rates ReinforcingReinforcing thethe FinancialFinancial FoundationFoundation z Reduction of interest rate risks by increasing the fixed interest-bearing liabilities ratio This document should not be construed as a disclosure document prepared in accordance with the Securities Exchange Law. We caution readers to 3 undertake investment decisions subject to individual determination. Summary of 9th Fiscal Period Financial Highlights of 9th Fiscal Period (2) PerformancePerformance HighlightsHighlights PerformancePerformance Prior to public listing After public listing (Millions of yen) (Yen) MTR achieved increased revenue and profit in the 6,000 24,000 9th fiscal period 5,000 20,000 4,000 16,000 Principal contributing factors are as follows: 3,000 12,000 z Gain on transfer of the Hitachi Headquarters Bldg. 2,000 8,000 ¾ Transfer price ¥42,000 million 1,000 4,000 rd th 0 ¾ Gain on transfer ¥925 million 0 1st Fiscal 2nd Fiscal 3 Fiscal 4th Fiscal 5 Fiscal 6th Fiscal 7th Fiscal 8th Fiscal 9th Fiscal Period Period Period Period Period Period Period Period Period z High occupancy rate maintained through stable operation Operating revenues 333 933 3,200 3,675 4,136 4,451 4,764 4,876 5,489 Net income 71 304 850 2,438 2,640 2,798 2,947 3,082 3,691 ¾ Portfolio occupancy rate continued to be more than 99% throughout Distribution per share 5,627 5,699 5,313 15,243 16,503 17,493 18,422 19,265 23,075 the 9th fiscal period OccupancyOccupancy Rate,Rate, ROA*ROA* Prior to public listing After public listing (Millions of yen) 100% 6% Change th th th 99% 5% 8 Fiscal Period 9 Fiscal Period 9 Fiscal Period (Compared with (Actual) (Forecast) (Actual) th the 8 Fiscal Period) 98% 4% Operating revenues 4,876 5,440 5,489 12.6% 97% 3% Operating income 3,279 3,862 3,901 19.0% Income before income taxes 3,083 3,675 3,692 19.8% 96% 2% NOI (including capital gain) 4,148 4,721 4,780 15.2% 95% 1% NOI 4,148 3,795 3,855 -7.1% 94% rd th th th 0% Net income 3,082 3,656 3,691 19.8% 1st Fiscal 2nd Fiscal 3 Fiscal 4th Fiscal 5 Fiscal 6th Fiscal 7 Fiscal 8 Fiscal 9th Fiscal Period Period Period Period Period Period Period Period Period Distribution per share (Yen) 19,265 22,850 23,075 19.8% Period-end occupancy rate 100% 100% 100% 100% 100% 99.3% 99.9% 99.9% 99.9% ROA 1.11% 1.11% 2.14% 4.20% 4.13% 4.01% 4.22% 4.23% 4.84% * ROA = Income before income taxes / Total assets at the end of the period × Annualized rate This document should not be construed as a disclosure document prepared in accordance with the Securities Exchange Law. We caution readers to 4 undertake investment decisions subject to individual determination. Summary of 9th Fiscal Period Newly Acquired Property: Akasaka-mitsuke MT Bldg. AnAn officeoffice buildingbuilding locatedlocated inin aa prominentprominent commercialcommercial businessbusiness areareaa Namboku Line Yurakucho Line z A highly visible large-scale office building situated in a prominent commercial business area Hotel New Otani z Offers exceptionally convenient access (served by five subway lines and situated at a corner plot Akasaka Prince Hotel Benkei Bridge intersected by Sotobori and Aoyama Avenues) Marunouchi Line z All rental spaces leased to Suntory Limited Aksaka-mitsuke Mt Bldg. Nagata-cho station (fixed-term leasing agreement until September 30, 2015) Tokyu Excel Hotel Aoyama Dori Akasaka-mitsuke Station z Large-scale renovations and upgrades completed in 2005 Hanzomon Line ¾ Earthquake protection structural enhancements; asbestos removal and counter- Ginza Line measures; installation of free-access floor; increased OA power supply capacity Property Summary Use Office building Address 1-2-3 Motoakasaka, Minato-ku, Tokyo, Japan Number of floors B2/12F Completion date February 1975 Total rentable area 13,194.20m2 Acquisition price ¥27,000 million Appraisal value on acquisition ¥27,200 million (Date of assessment) (April 30, 2006) Occupancy rate 100% (1) (Number of tenants) This document should not be construed as a disclosure document prepared in accordance with the Securities Exchange Law. We caution readers to 5 undertake investment decisions subject to individual determination. Summary of 9th Fiscal Period Newly Acquired Property: Hotel Okura Kobe AnAn internationalinternational luxuryluxury hhooteltel underunder thethe “Hotel“Hotel Okura”Okura”brandbrand Motomachi Station Kobe Port Tower Hanshin Motomachi Station Daimaru z An international luxury hotel under the “Hotel Okura” brand z Standing 35 stories and 135 meters high, this first-rate hotel is recognized as a Kobe Historical City Museum Museum landmark in Kobe Minato Motomachi Station Kobe Mizugami Police Station z Surrounded by Kobe Harbour and the Rokko mountain range, the Property’s location Hotel Okura Kobe in Meriken Park is one of the representative sightseeing districts in Kobe Kobe Port Tower z The hotel boasts one of the largest banquet halls in the Kansai region, a chapel, sports Kobe Sea Museum Meriken Park facilities and a diverse range of dining and drinking establishments Kobe Gulf Property Summary Use Hotel Address 2-1 Hatoba-cho, Chuo-ku, Kobe, Japan Number of floors B2/35F Completion date March 1989 Total rentable area 72,240.49m2 Acquisition price ¥19,000 million Appraisal value on acquisition ¥18,600 million (Date of assessment) (August 29, 2006) Occupancy rate 100% (1) (Number of tenants) This document should not be construed as a disclosure document prepared in accordance with the Securities Exchange Law. We caution readers to 6 undertake investment decisions subject to individual determination. Summary of 9th Fiscal Period Interest-Bearing Liabilities LLoansoans asas ofof EndEnd ofof 99thth FiscalFiscal PeriodPeriod (September(September 30,30, 2006)2006) th 9 Fiscal Period-End th z 9 Fiscal Period-End Remaining Interest-bearing liabilities to total assets ratio = 37.7% Drawdown Date Outstanding Balance Repayment Date Lender Average Interest Rate Repayment Method (Millions of yen) Period z Long-term interest-bearing liabilities ratio (excluding Short The Sumitomo Trust & Banking Co., Ltd. 2,500 0.35% 5 months Mitsubishi UFJ Trust and Banking Corporation February 28, 2006 2,500 0.35% February 28, 2007 long-term loans repayable within one year) = 53.0% - Bullet repayment T The Chiba Bank, Ltd. 500 0.35% erm on maturity/ Loans Unsecured/ The Joyo Bank, Ltd. August 31, 2006 500 0.64% z Fixed interest-bearing liabilities ratio = 57.4% Floating Non-Guaranteed Loans erm The Sumitomo Trust & Banking Co., Ltd. 4,500 0.59% T th - 11 months (8 fiscal period end = 48.5%) Mitsubishi UFJ Trust and Banking Corporation 4,500 0.59% August 31, 2007 September 20, 2006 Mizuho Corporate Bank, Ltd. Short 5,000 0.59% ¾ Increased long-term fixed interest rate loans with the aim of The Chiba Bank, Ltd. 1,500 0.59% reducing risks from rising interest rates and refinancing Subtotal 21,500 0.53% ¾ Maintenance of a credit commitment line of ¥10,000 million as a Sumitomo Mitsui Banking Corporation 2,000 0.78% means of securing fund procurement Floating February 28, 2007 5months (Thousand of yen) The Hachijuni Bank, Ltd. 1,000 0.73% March 26, 2004 As of As of The Dai-ichi Mutual Life Insurance Company February 28, 2007 5 months Increase/ Decrease 2,500 0.93% March 31, 2006 September 30, 2005 2 years 5 months Nippon Life Insurance Company February 27, 2009 Interest-bearing liabilities 57,500,000 51,500,000 6,000,000 3,000 1.29% Interest-bearing liabilities to total assets ratio = The Chiba Bank, Ltd.