Notice Regarding New Investment Unit Issuance and Investment Unit Offering

Overview of Capital Policy

At the board meeting held on March 19, 2026, Japan Real Estate Investment Corporation resolved to conduct a public offering of 161,200 new investment units, an overallotment offering of 8,060 units, and a third-party allotment of the same number. The issue price and related details are scheduled to be determined at the board meetings from March 25 to 27. The maximum fundraising amount is approximately 20.7 billion yen, which will be applied to additional acquisitions of already acquired and planned real estate properties as well as repayment of short-term borrowings. The offering targets investors both domestically and internationally, with sales planned in overseas markets as well.

Impact on Shareholders and Future Outlook

Following the issuance of new investment units, the total number of outstanding investment units is expected to increase to approximately 7,283,580 units, potentially causing dilution. Mitsubishi Estate Co., Ltd. is scheduled to purchase 4,836 units from the public offering, which will be subject to a lock-up period. The implementation and volume of the overallotment offering may vary depending on demand conditions. The use of raised funds aims to enhance portfolio competitiveness and expand borrowing capacity, targeting medium- to long-term growth.