Supplementary Explanation Materials Regarding Today’s Announcement on “Notice of New Investment Units Issuance and Investment Unit Offering”

Overview of Capital Policy

Japan REIT Investment Corporation plans to acquire five relatively new properties including hotels, offices, residential, and land leasehold with a total value of approximately 18.9 billion yen in March 2026, while concurrently disposing of the Kudan-kita 325 Building for about 2.74 billion yen. As a result of this transaction, the asset scale will expand to approximately 274.2 billion yen, and the average property age will rejuvenate to 22.8 years, strengthening the portfolio’s qualitative aspects. The acquired properties were purchased at a discount of approximately -17.5% against the appraisal value, securing an average NOI yield (post-compression) of 4.5%. These asset replacements are part of a portfolio resilience strategy in anticipation of inflation and aim to enhance the sustainable growth potential of Earnings Per Unit (EPU).

Financial Status and Future Outlook

After this transaction, the Loan-to-Value (LTV) ratio is expected to remain stable at approximately 48.1% on a total asset basis and about 38.0% on a market value basis, with total interest-bearing debt of 135.4 billion yen. Long-term issuer credit ratings are maintained at AA- (Stable) by JCR and A+ (Stable) by R&I. Funding will be procured through public offering and new borrowings to promote asset acquisition. Strategic value-up investments will be made to improve NOI of existing properties, accelerating internal growth. Utilization of SBI Group’s support will continue to drive qualitative enhancement and profitability of the portfolio.