Interim report
Page 1
- 1 - This is an English translation of summarized financial results prepared for reference purposes only. Should there be any inconsistency between the translation and the official Japanese text, the latter shall prevail. October 19, 2026 Financial Report for the Fiscal Period Ended August 31, 2026 (For the Reporting Period from March 1, 2026 to August 31, 2026) Hulic Reit, Inc. (“Investment Corporation”) Listing: Tokyo Stock Exchange Securities code: 3295 URL: https://www.hulic-reit.co.jp Representative: Kazuaki Chokki, Executive Officer Asset management company: Hulic Reit Management Co., Ltd. Representative: Kazuaki Chokki, Representative Director, President and CEO Contact: Hiroshi Machiba, Director, CFO, Head of Planning and Administration Division and General Manager of Finance and Planning Department Phone: +81-3-5244-5580 Scheduled date to file securities report: November 25, 2026 Scheduled date to commence payment of distributions: November 13, 2026 Preparation of supplementary material on financial report: Yes Holding of financial report presentation meeting: Yes (for institutional investors and analysts) (Amounts truncated to the nearest million yen, except for the basic earnings per unit) 1. Summary of financial results for the fiscal period ended August 31, 2026 (March 1, 2026 - August 31, 2026) (1) Operating results (Percentages show changes from the previous fiscal period) Operating revenues Operating profit Ordinary profit Profit Fiscal period ended Millions of yen % Millions of yen % Millions of yen % Millions of yen % August 31, 2026 12,278 (3.0) 6,733 (3.9) 5,757 (5.0) 5,754 (5.0) February 28, 2026 12,653 (1.0) 7,008 1.0 6,060 0.7 6,059 0.7 Basic earnings per unit Return on equity Ordinary profit on total assets Ordinary profit on operating revenues Fiscal period ended Yen % % % August 31, 2026 3,996 2.9 1.4 46.9 February 28, 2026 4,207 3.0 1.4 47.9 (Note) Basic earnings per unit is calculated by dividing profit by the day-weighted average number of investment units outstanding during the period (fiscal period ended August 31, 2026: 1,440,000 units; fiscal period ended February 28, 2026: 1,440,000 units).
Page 2
- 2 - (2) Distributions Distributions per unit (excluding distributions in excess of earnings) Total distributions (excluding distributions in excess of earnings) Distributions in excess of earnings per unit Total distributions in excess of earnings Payout ratio Distributions to net assets Fiscal period ended Yen Millions of yen Yen Millions of yen % % August 31, 2026 4,000 5,760 – – 100.0 2.9 February 28, 2026 4,050 5,832 – – 96.2 2.9 (Notes) 1. The payout ratio is calculated with the following formula and rounded down to nearest one decimal place. Payout ratio = Total distributions (excluding distributions in excess of earnings) / Profit × 100 2. The main reason for the difference between total distributions and profit for the fiscal period ended February 28, 2026 is a provision of reserve for tax purpose reduction entry. (3) Financial position Total assets Net assets Equity ratio Net assets per unit As of Millions of yen Millions of yen % Yen August 31, 2026 418,515 201,682 48.2 140,057 February 28, 2026 419,598 201,759 48.1 140,110 (4) Cash flows Net cash provided by (used in) operating activities Net cash provided by (used in) investing activities Net cash provided by (used in) financing activities Cash and cash equivalents at end of period Fiscal period ended Millions of yen Millions of yen Millions of yen Millions of yen August 31, 2026 14,932 (5,930) (7,630) 16,840 February 28, 2026 9,150 (5,160) (7,580) 15,469 2. Forecasts of performance for the fiscal period ending February 28, 2027 (September 1, 2026 - February 28, 2027) and August 31, 2027 (March 1, 2027 - August 31, 2027) (Percentages show changes from the previous fiscal period) Operating revenues Operating profit Ordinary profit Profit Distributions per unit (excluding distributions in excess of earnings) Distributions in excess of earnings per unit Fiscal period ending Millions of yen % Millions of yen % Millions of yen % Millions of yen % Yen Yen February 28, 2027 12,228 (0.4) 6,489 (3.6) 5,279 (8.3) 5,278 (8.3) 4,000 – August 31, 2027 12,655 3.5 6,206 (4.4) 5,257 (0.4) 5,256 (0.4) 4,000 – (Reference) Forecasted basic earnings per unit (Forecasted profit / Forecasted number of investment units at end of period) For the fiscal period ending February 28, 2027: ¥3,665 For the fiscal period ending August 31, 2027: ¥3,650
Page 3
- 3 - * Other (1) Changes in accounting policies, changes in accounting estimates, and retrospective restatement a. Changes in accounting policies due to revisions to accounting standards and other regulations: None b. Changes in accounting policies due to reasons other than a. above: None c. Changes in accounting estimates: None d. Retrospective restatement: None (2) Total number of investment units issued at end of period a. Total number of investment units issued at end of period (including treasury investment units) As of August 31, 2026 1,440,000 units As of February 28, 2026 1,440,000 units b. Number of treasury investment units at end of period As of August 31, 2026 0 units As of February 28, 2026 0 units (Note) Please refer to “Notes on Per Unit Information” on page 38 for the number of investment units used as the basis for calculating basic earnings per unit. * Financial reports are exempt from audit conducted by certified public accountants or an audit corporation. * Special notes Forward-looking statements presented in this financial report, including forecasts of performance, are based on information currently available to the Investment Corporation and on certain assumptions the Investment Corporation deems to be reasonable. As such, actual operating and other results may differ materially from these forecasts as a consequence of numerous factors. The above-mentioned forecasts are based on “Assumptions for forecasts of performance for the fiscal period ending February 28, 2027 (fr om September 1, 2026 to February 28, 2027) and the fiscal period ending August 31, 2027 (from March 1, 2027 to August 31, 2027)” (hereinafter, “Assumptions for Forecasts”) on pages 10 through 13 for calculation, and our judgment as of this date. Actual operating revenues, operating profit, ordinary profit, profit, distributions per unit and distributions in excess of earnings per unit may vary due to factors such as additional acquisitions or tran sfers of real estate, etc., fluctuations in the real estate market or other changes in market conditions that may affect the Investment Corporation. These forecasts do not guarantee the distribution amount.
Page 4
- 4 - 1. Status of Asset Management (1) Operating results Summary of results for the reporting period i) Transition of the Investment Corporation The Investment Corporation was established on November 7, 2013, with Hulic Reit Management Co., Ltd. (hereinafter referred to as the “Asset Manager”), which is entrusted with the management of the assets of the Investment Corporation, as the organizer under the Act on Investment Trusts and Investment Corporations of Japan (hereinafter referred to as the “Investment Trust Act”). On November 25, 2013, the Investment Corporation was registered with the Director-General of the Kanto Local Finance Bureau (registration number: Director-General of the Kanto Local Finance Bureau No. 88). The Investment Corporation issued new investment units through a public offering with the payment date on February 6, 2014, which were listed on the Real Estate Investment Trust Securities (J-REIT) Market of Tokyo Stock Exchange, Inc. (Securities code: 3295) on February 7, 2014. New investment units were issued through a third-party allotment on March 7, 2014. The Investment Corporation recently carried out capital increases through its eighth public offering after its listing on October 27, 2021 and a third-party allotment on November 22, 2021. As a result, the number of investment units issued as of August 31, 2026 (hereinafter referred to as the “end of the reporting period”) was 1,440,000. The Investment Corporation primarily invests in and manages office buildings and retail facilities. ii) Performance for the reporting period During the reporting period, the Investment Corporation conducted an exchange transaction in June 2026 involving Hulic Ginza Building (quasi co-ownership interest: 49.0% (Note), acquisition price: ¥14,700 million) and Hulic Ginza World Town Building (quasi co-ownership interest: 20.0%, acquisition price: ¥8,163 million) in exchange for Hulic Kamiyacho Building (quasi co-ownership interest: 9.0%, transfer price: ¥6,030 million) and Hulic Kudan Building (Land) (transfer price: ¥15,300 million), acquired Edogawabashi Fuji Building (quasi co-ownership interest: 90.0%, acquisition price: ¥3,084 million) on the same day, and transferred Tabata Network Center, Hiroshima Network Center, Atsuta Network Center, Sapporo Network Center and Keihanna Network Center (total transfer price: ¥8,000 million) in March 2026. As a result, the number of properties held by the Investment Corporation as of the end of the reporting period was 63, and the total acquisition price was ¥424,195 million (rounded to the nearest ¥1 million). The occupancy rate of the entire portfolio has remained at a high level of 99.7% as of the end of the reporting period. (Note) This property is a building with unit ownership consisting of a “store and office area” and a “hotel area.” The interest acquired by the Investment Corporation is a 49.0% quasi co-ownership interest in trust beneficiary rights, the trust assets of which are the partial ownership rights in the “store and office area” and the site rights corresponding to the “store and office area” (73.46%). Based on the belief that consideration for the environment, society and governance leads to the maximization of medium- to long-term unitholder value, the Asset Manager formulated the “Sustainability Policy” in March 2016 and has implemented initiatives to reduce environmental impact, improve tenants’ satisfaction and contribute to local communities. The Investment Corporation has participated in the Real Estate Assessment of GRESB (Note 1) from the fiscal period ended August 31, 2016. In the GRESB Real Estate Assessment conducted in 2026, the Investment Corporation was awarded “4 Stars” of GRESB Rating, for its initiatives in environmental awareness and sustainability, having received strong recognition in both the areas of “Management Component” and “Performance Component.” At the same time, the Investment Corporation also received a “Green Star” for the tenth consecutive year. Furthermore, the Investment Corporation’s information disclosure on its environmental consideration and sustainability initiatives was assessed as particularly impressive, and was given a rating of “A,” the highest of five possible scores, in the GRESB Public Disclosure, introduced in fiscal 2017, for the eighth consecutive year. Furthermore, the Investment Corporation has been working on obtaining external certification relating to energy conservation and environmental performance of its owned properties, and as of the end of the reporting period, it has obtained external certification for a total of 56 properties, as follows. Concerning DBJ Green Building Certification (Note 2), the Investment Corporation has acquired
Page 5
- 5 - certification for eight properties, with Ochanomizu Sola City and Hulic Asakusabashi Building obtaining the highest ranking among those properties. As for BELS (Note 3), the Investment Corporation has acquired certification for 20 properties, with Hulic Ginza Building, HULIC &New SHIBUYA and Hulic Shimura-sakaue obtaining the highest ranking among those properties. Additionally, Hulic Ginza Building has also acquired ZEB Ready and ZEB Oriented (Note 4) ratings. Concerning the real estate evaluation certification CASBEE (Note 5), the Investment Corporation has acquired certification for 22 properties (Note 6), with Toranomon First Garden, Hulic Kandabashi Building, Hulic Kakigaracho Building, Ochanomizu Sola City, Hulic Higashi Ueno 1 Chome Building, Hulic Jimbocho Building, Hulic Ryogoku Building, Hulic Asakusabashi Edo-dori, Hulic Kojimachi Building, Hulic Hachioji Building, Hulic Kobunacho Building, Oimachi Redevelopment Building (#2)/(#1), Hulic Jingu-Mae Building and Hulic Mejiro obtaining the highest ranking among those properties. Concerning CASBEE-Wellness Office evaluation certification (Note 7), the Investment Corporation has obtained the highest ranking for Hulic Toranomon Building. Furthermore, the Investment Corporation has acquired certification for five properties, including Charm Suite Shinjukutoyama and Granda Gakugei Daigaku, from the Japan Habitat Evaluation and Certification Program (JHEP) (Note 8). In addition, having recognized the importance of disclosing climate-related financial information, the Asset Manager expressed its support for the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) in July 2021 and has joined the TCFD Consortium, which is an organization in Japan for companies that support the recommendations. Based on the four items (governance, strategy, risk management, and metrics and targets) of the TCFD recommendations, the Asset Manager analyzes the business risks and opportunities brought about in response to climate change and has been disclosing information concerning its initiatives since April 2022. Furthermore, the Investment Corporation formulated targets for reducing greenhouse gas (hereinafter referred to as “GHG”) emissions, and acquired certification from the Science Based Targets initiative (hereinafter referred to as the “SBTi”) (Note 9) in November 2024 as these targets are considered to be aligned with the levels required by the Paris Agreement and based on scientific evidence. At the time of acquiring the certification, the Investment Corporation was the first J-REIT to acquire the certification from the SBTi through the so-called “standard version” of the application process, instead of the small to medium-sized enterprise version (Note 10). (Note 1) GRESB is an annual benchmark assessment used to evaluate environmental, social and governance (ESG) considerations of real estate companies and funds, as well as the name of the organization which runs the assessment. It was established in 2009 primarily by major European pension fund groups, which led the Principles for Responsible Investment. (Note 2) The “DBJ Green Building Certification” is a certification system created by Development Bank of Japan Inc. in April 2011 to support real estate properties with environmental and social awareness (“Green Building”). The certification system is said to evaluate and certify real estate properties in terms of their desirability for society and the economy based on a comprehensive evaluation, which includes not only environmental performance, but also responsiveness to various stakeholder needs such as consideration for emergency preparedness and the community, and to support these efforts. (Note 3) The “BELS” is a building energy-efficiency labeling system that was started with the aim of having third- party institutions implement accurate evaluation and labeling of energy-conservation performance of buildings in accordance with the guidelines set forth in October 2013 by the Ministry of Land, Infrastructure, Transport and Tourism in “Evaluation Guidelines for Energy-efficiency Labeling for Non- residential Buildings (2013).” (Note 4) Net Zero Energy Building (ZEB) Certification is a certification system established mainly by the Ministry of Economy, Trade and Industry and the Ministry of the Environment for the purpose of promoting zero annual energy balance of buildings through energy saving and the use of renewable energy. It is a system to certify whether the target property meets the ZEB standards (primary energy reduction, energy creation, etc.) through a third-party evaluation, and the evaluation of ZEB is displayed in four levels, which are “ZEB” (highest rating), Nearly ZEB, ZEB Ready and ZEB Oriented, in the evaluation system of BELS. Furthermore, Hulic Ginza Building’s ZEB Oriented rating applies to the entire building, and the ZEB Ready rating applies only to the office area. (Note 5) “CASBEE” (Comprehensive Assessment System for Built Environment Efficiency) is a method for evaluating and rating the environmental performance of buildings. CASBEE is a system that comprehensively evaluates the quality of buildings by giving consideration not only to the environment in regard to the use of materials that have good energy conservation and small environmental loads, but also to the comfort inside the buildings and to the landscapes. Institute for Building Environment and Energy Conservation (IBEC) promotes the adoption of the system and operates the assessment and certification.
Page 6
- 6 - The real estate evaluation certification CASBEE evaluates the environmental performance of existing buildings with one or more years of use after completion. (Note 6) Oimachi Redevelopment Building (#2)/(#1) are recorded as a single building as they obtained certification as a combined building. (Note 7) The “CASBEE-Wellness Office evaluation certification” is a method for evaluating specifications, performance and approaches of buildings that support maintenance and enhancement of the health and comfort of building users. The system evaluates not only the direct impact on the health and comfort of workers who inhabit offices in the building but also other performance factors such as contribution to intellectual productivity improvement as well as security and safety. Institute for Building Environment and Energy Conservation (IBEC) promotes the adoption of the system and operates the assessment and certification. (Note 8) The Japan Habitat Evaluation and Certification Program (JHEP) is based on the habitat evaluation procedures (HEP) developed by the U.S. Department of the Interior in the 1970s and 1980s to quantitatively evaluate habitats, focused on habitats where living creatures live. JHEP, which was developed and is managed by Ecosystem Conservation Society-Japan, evaluates and certifies initiatives that contribute to the conservation and restoration of biodiversity. (Note 9) SBTi is an international initiative jointly operated by the CDP, United Nations Global Compact (UNGC), World Resources Institute (WRI), and World Wide Fund for Nature (WWF). Science Based Targets (SBT; emissions reduction targets based on scientific evidence) refers to targets for reducing GHG emissions set by companies which are aligned with the levels required by the Paris Agreement (aiming to hold the global temperature rise to a level well below 2°C above pre-industrial levels, and limit it to 1.5°C), and the SBTi gives certification to companies that set SBT. (Note 10) In applying for obtaining the certification, since the Investment Corporation does not fall under the category of small to medium-sized enterprise in the company classification established by the SBTi, the Investment Corporation formulated GHG emissions reduction targets, made an application, and acquired the certification in a way that meets the so-called “standard version” of certification criteria of SBT. iii) Status of financing During the reporting period, the Investment Corporation made an early repayment of long-term borrowings of ¥6,400 million on March 16, 2026 using the proceeds from a transfer of assets and cash reserves, and executed short-term borrowings of ¥4,600 million on June 30, 2026 in order to cover part of the acquisition price of assets. In addition, the Investment Corporation executed long-term borrowings (including green loans) totaling ¥16,388 million on August 31, 2026, refinanced ¥12,508 million in long-term borrowings for which repayment was due, and made an early repayment of short-term borrowings of ¥3,880 million. As a result, as of the end of the reporting period, interest-bearing debt totaled ¥195,096 million (comprising ¥4,600 million in short-term borrowings, ¥3,000 million in current portion of investment corporation bonds, ¥26,571 million in current portion of long-term borrowings, ¥12,000 million in investment corporation bonds and ¥148,925 million in long-term borrowings), resulting in a loan-to- value (LTV) ratio of 46.6%. Issuer credit ratings of the Investment Corporation as of the end of the reporting period are as follows: Credit rating agency Contents of credit rating Japan Credit Rating Agency, Ltd. Long-term issuer rating: AA, Rating outlook: Stable iv) Overview of financial results and distributions As a result of the above asset management, operating revenues for the reporting period were ¥12,278 million (down 3.0% compared with the previous fiscal period), operating profit was ¥6,733 million (down 3.9% compared with the previous fiscal period), ordinary profit after deducting interest expenses for borrowings, etc. was ¥5,757 million (down 5.0% compared with the previous fiscal period), and profit was ¥5,754 million (down 5.0% compared with the previous fiscal period). Furthermore, in accordance with the distribution policy set forth in the Investment Corporation’s Articles of Incorporation, the Investment Corporation has applied special measures for the taxation system for investment corporations (Article 67-15 of the Act on Special Measures Concerning Taxation) and decided to pay distributions of earnings amounting to the initially planned ¥5,760
Page 7
- 7 - million for the reporting period, by allocating a portion of its internal reserves. Consequently, distributions per unit came to ¥4,000. Outlook for the fiscal period ending February 28, 2027 i) Outlook for overall operations Looking forward, we can expect business and economic conditions in Japan to gradually recover, supported by improvements in the employment and income environment and the effects of various governmental measures. However, it is considered necessary to closely monitor the impact of the situation in the Middle East and natural disasters. In addition, it is important to pay close attention to the impact of fluctuations in financial capital markets and other factors. Regarding the rental office market amid these conditions, while the market is supported by steady corporate office demand, it is necessary to continue paying close attention to changes in office needs, such as consolidation and relocation of offices and increases in floor space in buildings. Furthermore, while retail properties and hotels are expected to remain strong against the backdrop of inbound tourism demand, it is necessary to accurately assess the business conditions of tenants and respond appropriately. Against this backdrop, the portfolio strategy of the Investment Corporation transitioned to “progress in asset replacement strategy aimed at improving quality or growth potential, etc.,” shifting from an emphasis on stability up to this point to a focus on improving growth potential. Specifically, “Office and Retail Properties” mainly in the Tokyo area, where growth is expected, will continue to be priority targets for investment with an investment ratio of approximately 70% (±10 points) (Note), and the investment ratio for “Hotels” has been set at approximately 20% (±10 points) (Note) given the recent strong inbound tourism demand and the expected steady demand in Japan. On the other hand, “private nursing homes,” etc., which are assets with mainly fixed rents and for which stable earnings are expected over the medium to long term, have been set as “Assets for Other Uses,” with an investment ratio of approximately 10% (±10 points) (Note). As part of these efforts to maximize unitholder value over the medium to long term, the Investment Corporation will implement efforts combining the Asset Manager’s own measures to drive external and internal growth while using the support of the Hulic Group. The Investment Corporation will maintain and grow profits over the medium to long term and increase the size and value of the asset portfolio. In terms of financing strategy, the Investment Corporation will seek to maintain the LTV ratio at an appropriate level and shift to loans with longer terms and staggered repayment dates, etc., in order to maintain a stable and healthy financial position. With respect to the interest rate options when conducting refinancing and other transactions, the Investment Corporation will comprehensively consider the financial environment, interest rate trends, impact on the current unitholders, and other factors, and it will decide whether to use fixed or floating interest rates. (Note) The figures are based on the acquisition prices and do not include consumption tax, local consumption tax, commission fees, etc. incurred on acquisition. Note that the investment ratio can differ from these ratios when the individual specific assets are acquired by the Investment Corporation and due to other factors. ii) Significant events after the reporting period Not applicable. (Reference information) (A) Exchange of properties <Overview of the exchange> • Exchange counterparty: Hulic Co., Ltd. • Difference arising from the exchange: The difference arising from the exchange (¥2,180 million), which is the difference between the acquisition price in the <Assets acquired by the exchange> below and the transfer price in the <Assets transferred by the exchange> below, was paid to
Page 8
- 8 - Hulic Co., Ltd., the exchange counterparty, on the exchange date. The payment was made with cash on hand and borrowings. • Reduction entry: For the assets acquired, we plan to apply the provision of Article 50 of the Corporation Tax Act, “Inclusion in Deductible Expenses of the Depreciated Amount of Assets Acquired through Exchange,” and perform a reduction entry, with plans to record the exchange gain. <Assets acquired by the exchange> The Investment Corporation acquired the real estate trust beneficiary rights as mentioned below (1 property; acquisition price: ¥29,500 million). The acquisition price provided does not include expenses incurred on the acquisition of such acquired asset (including acquisition expenses, settlement of fixed asset tax and city planning tax, and consumption taxes), and reflects the exchange price stated in the trust beneficiary right quasi co-ownership interest exchange agreement. Property name Location Date of acquisition Quasi co- ownership interest in trust beneficiary rights acquired Acquisition price (Millions of yen) QUARTZ SHINSAIBASHI Osaka-shi, Osaka September 30, 2026 49.0% (Note) 29,500 (Note) This represents a 49.0% quasi co-ownership interest (24.99% ownership share) in trust beneficiary rights backed by a 51.0% co-ownership interest in an entire building and its site. <Assets transferred by the exchange> The Investment Corporation transferred the real estate trust beneficiary rights as mentioned below (3 properties; total transfer price: ¥27,320 million). The transfer price provided does not include expenses incurred on the transfer of such transferred asset (including transfer expenses, settlement of fixed asset tax and city planning tax, and consumption taxes), and reflects the exchange price stated in the trust beneficiary right quasi co-ownership interest exchange agreement. Property name Location Date of transfer Quasi co- ownership interest in trust beneficiary rights transferred Transfer price (Millions of yen) Hulic Kojimachi Building Chiyoda-ku, Tokyo September 30, 2026 90.0% 13,300 Hulic Shibuya 1 Chome Building Shibuya-ku, Tokyo September 30, 2026 100.0% 6,500 Trust Garden Yoganomori Setagaya-ku, Tokyo September 30, 2026 100.0% 7,520 Total – – – 27,320 (B) Acquisition of properties The Investment Corporation acquired the below-mentioned real estate trust beneficiary rights (1 property; acquisition price: ¥19,100 million). The acquisition price provided does not include expenses incurred on the acquisition of such acquired asset (including acquisition expenses, settlement of fixed asset tax and city planning tax, and consumption taxes), and is equal to the transfer price stated in the purchase and sale agreement for the trust beneficiary rights. Property name Location Date of acquisition Acquisition price (Millions of yen) Seller East Net Building Koto-ku, Tokyo September 30, 2026 19,100 Hulic Co., Ltd.
Page 9
- 9 - (C) Borrowing of funds The Investment Corporation executed the following borrowing of funds in order to cover part of the acquisition price described in (A) and (B) above. Lender Borrowing amount (Millions of yen) Interest rate Drawdown date Repayment date Repayment method Remarks Mizuho Bank, Ltd. 5,000 Base rate of interest (JBA one- month Japanese Yen TIBOR) +0.20% September 30, 2026 August 31, 2027 Lump-sum repayment Unsecured and unguaranteed Mizuho Bank, Ltd. 5,000 Base rate of interest (JBA one- month Japanese Yen TIBOR) +0.25% February 29, 2028 Mizuho Bank, Ltd. 5,000 Base rate of interest (JBA one- month Japanese Yen TIBOR) +0.25% August 31, 2028 MUFG Bank, Ltd. 6,200 Base rate of interest (JBA one- month Japanese Yen TIBOR) +0.20% September 30, 2027 iii) Operating results (earnings) forecasts The Investment Corporation’s forecasts for the fiscal period ending February 28, 2027 (from September 1, 2026 to February 28, 2027) and the fiscal period ending August 31, 2027 (from March 1, 2027 to August 31, 2027) are as follows: Fiscal period ending February 28, 2027 Fiscal period ending August 31, 2027 Operating revenues ¥12,228 million ¥12,655 million Operating profit ¥6,489 million ¥6,206 million Ordinary profit ¥5,279 million ¥5,257 million Profit ¥5,278 million ¥5,256 million Distributions per unit (excluding distributions in excess of earnings) ¥4,000 ¥4,000 Distributions in excess of earnings per unit ¥– ¥– Information on assumptions for the above forecasts of operating results is as shown in “Assumptions for forecasts of performance for the fiscal period ending February 28, 2027 (from September 1, 2026 to February 28, 2027) and the fiscal period ending August 31, 2027 (from March 1, 2027 to August 31, 2027)” on pages 10 through 13. (Note) The above-mentioned forecasts are based on certain calculation assumptions and our judgment based on information currently available to the Investment Corporation. Actual operating revenues, operating profit, ordinary profit, profit, distributions per unit and distributions in excess of earnings per unit may vary in response to changes in the losses and various expenses associated with the fire that occurred at Hulic Gotanda Yamate-dori Building on February 24, 2026, changes in the amount of insurance proceeds received by the Investment Corporation related to the fire, as well as factors such as additional acquisitions or transfers of real estate, etc., fluctuations in the real estate market or other changes in market conditions that may affect the Investment Corporation. These forecasts do not guarantee the distribution amount.
Page 10
- 10 - Assumptions for forecasts of performance for the fiscal period ending February 28, 2027 (from September 1, 2026 to February 28, 2027) and the fiscal period ending August 31, 2027 (from March 1, 2027 to August 31, 2027) Item Assumptions Accounting period • Fiscal period ending February 28, 2027: 181 days from September 1, 2026 to February 28, 2027 • Fiscal period ending August 31, 2027: 184 days from March 1, 2027 to August 31, 2027 Portfolio • We have based our assumptions on 62 properties we hold as of the date of this report (hereinafter referred to as the “Assets Held” in the “Assumptions” column). • Owned properties are expected to be transferred in the fiscal period ending August 31, 2027 (the 27th fiscal period) though the transfers have not been determined at this time. • In actuality, these transfers may not be conducted. Additionally, there may be changes in the portfolio due to the acquisition or disposition of other properties. Operating revenues • Real estate leasing business revenues from Assets Held have been calculated in consideration of trends of the lease market, current operating status, status of negotiations with tenants and other factors, and taking into account a certain degree of impact from tenants moving in and out and rent increase revisions, acceptance of variable rents for hotels, and other factors, on the basis of lease agreements effective as of the date of this report. Average monthly occupancy rates during period are assumed to be 99.4% and 99.4% for the periods ending February 28, 2027 (the 26th fiscal period) and August 31, 2027 (the 27th fiscal period), respectively, although such rates may vary if there is unexpected moving in or out of tenants. • Projected amounts for the gains on the exchanges of QUARTZ SHINSAIBASHI (acquisition) and Hulic Kojimachi Building, Hulic Shibuya 1 Chome Building, and Trust Garden Yoganomori (transfer) conducted in September 2026 are recognized in the fiscal period ending February 28, 2027 (the 26th fiscal period). • Gains on the transfers of owned properties (excluding expenses relating to the transfers) are expected to occur in the fiscal period ending August 31, 2027 (the 27th fiscal period) though the transfers have not been determined at this time. In actuality, these transfers may not be conducted. Additionally, even if conducted, the actual gains may vary from the projected amounts due to various factors. • Operating revenues assume no delinquencies or non-payment of rent by tenants.
Page 11
- 11 - Item Assumptions Operating expenses • Of the expenses related to leasing business, the principal component of operating expenses, expenses other than depreciation and amortization expenses for the Assets Held excluding assets acquired in the fiscal period ended August 31, 2026 (the 25th fiscal period) have been calculated in such a way as to reflect variable factors in the expenses on the basis of past performance figures. In addition, such expenses other than depreciation and amortization expenses for the assets acquired in the fiscal period ended August 31, 2026 (the 25th fiscal period) have been calculated in such a way as to reflect variable factors in the expenses based on information received from the transferor of each asset and other factors, and also based on past performance figures. • We have calculated depreciation and amortization expenses using the straight-line method, including ancillary expenses, and assumed that we will incur depreciation and amortization expenses of ¥1,496 million for the fiscal period ending February 28, 2027 (the 26th fiscal period) and ¥1,536 million for the fiscal period ending August 31, 2027 (the 27th fiscal period). • In general, fixed asset tax, city planning tax, etc. for the assets we acquire or transfer are settled at the time of acquisition or transfer between the transferor and the transferee based on their respective periods of ownership in relation to the relevant tax year. With respect to the acquired assets, any of these taxes allocated to the transferee are not recognized in expenses at the time of acquisition because they are treated as a part of the acquisition cost for accounting purposes in the Investment Corporation. Fixed asset tax, city planning tax, etc. are assumed at ¥907 million for the fiscal period ending February 28, 2027 (the 26th fiscal period) and ¥1,093 million for the fiscal period ending August 31, 2027 (the 27th fiscal period). • Repair expenses for buildings are recognized for each fiscal period in amounts assumed as necessary based on the repair plan formulated by the Asset Manager for each property. However, actual repair expenses for each fiscal period may differ substantially from our forecasts, mainly for the following reasons: (i) we may incur expenses for urgent repairs to properties for reasons including damage to buildings resulting from factors that are difficult to foresee, (ii) generally, there is a substantial difference in such expenses incurred between each fiscal period, and (iii) such expenses are not incurred on a regular basis. We expect to post ¥341 million in the fiscal period ending February 28, 2027 (the 26th fiscal period) and ¥921 million in the fiscal period ending August 31, 2027 (the 27th fiscal period). • Operating expenses other than those related to leasing business (asset management fee, asset custody fee, administrative service fees, etc.) are assumed at ¥1,536 million for the fiscal period ending February 28, 2027 (the 26th fiscal period) and ¥1,420 million for the fiscal period ending August 31, 2027 (the 27th fiscal period). These expenses have been calculated based on past performance figures and upon considering variable factors. Non-operating income • Regarding the fire that occurred at Hulic Gotanda Yamate -dori Building on February 24, 2026, the insurance income (assumed) to be received under the applicable insurance policy is recorded as non-operating income of ¥222 million for the fiscal period ending February 28, 2027 (the 26th fiscal period) and ¥734 million for the fiscal period ending August 31, 2027 (the 27th fiscal period). The insurance income may fluctuate due to various factors, including the costs of restoration work, the time required for recovery and the results of negotiations with the insurance company.
Page 12
- 12 - Item Assumptions Non-operating expenses • Taking into account interest rate trends, the latest performance figures and other factors, we expect to record interest expenses and other borrowing-related expenses of ¥1,450 million in the fiscal period ending February 28, 2027 (the 26th fiscal period) and ¥1,701 million in the fiscal period ending August 31, 2027 (the 27th fiscal period). • We expect to record amortization of investment corporation bond issuance costs (amortized by the straight-line method over period until redemption) relating to issuance of investment corporation bonds, etc. of ¥7 million in the fiscal period ending February 28, 2027 (the 26th fiscal period) and ¥6 million in the fiscal period ending August 31, 2027 (the 27th fiscal period). Interest-bearing debt • The balance of interest-bearing debt of the Investment Corporation as of the date of this report is ¥216,296 million (comprising ¥15,800 million in short-term borrowings, ¥3,000 million in current portion of investment corporation bonds, ¥26,571 million in current portion of long-term borrowings, ¥12,000 million in investment corporation bonds, and ¥158,925 million in long-term borrowings). • For ¥13,590 million in current portion of long-term borrowings, ¥4,600 million in short-term borrowings and ¥1,000 million in current portion of investment corporation bonds, for which repayments are due by February 28, 2027 (the end of the 26th fiscal period), and ¥12,981 million in long-term borrowings, ¥5,000 million in short-term borrowings and ¥2,000 million in current portion of investment corporation bonds, for which repayments are due by August 31, 2027 (the end of the 27th fiscal period), we assume the refinancing of the entire amounts by the due date. • As a result of the above, we assume that the balance of interest-bearing debt as of February 28, 2027 (the end of the 26th fiscal period) and August 31, 2027 (the end of the 27th fiscal period) will each be ¥216,296 million. We estimate the LTV ratio (assumed) of approximately 49% as of February 28, 2027 (the end of the 26th fiscal period). However, the balance of interest-bearing debt and the LTV ratio (assumed) may change depending on the amount of cash reserves utilized. • The above LTV ratio (assumed) was obtained by the following formula: LTV (assumed) = Interest-bearing debt at end of period (assumed amount) / Total assets at end of period (projected amount) × 100 Issuance of investment units • We have assumed that 1,440,000 total investment units have been issued as of the date of this report, and that there will be no issuance of additional investment units, nor purchase or cancellation of treasury investment units, until the end of the fiscal period ending August 31, 2027 (the end of the 27th fiscal period). Distributions per unit (excluding distributions in excess of earnings) • We have calculated distributions per unit (excluding distributions in excess of earnings) in accordance with the cash distribution policy prescribed in the Investment Corporation’s Articles of Incorporation. • Actual distributions per unit (excluding distributions in excess of earnings) may fluctuate due to various factors including changes in the asset portfolio, fluctuations in rent revenues associated with changes in tenants, or unforeseen needs for repairs. • For the fiscal period ending February 28, 2027 (the 26th fiscal period), a reversal of ¥481 million in internal reserves is expected, and for the fiscal period ending August 31, 2027 (the 27th fiscal period), a reversal of ¥503 million in internal reserves is expected. The actual amounts of the internal reserves may change. Distributions in excess of earnings per unit • We currently have no plans to pay cash distributions in excess of earnings (regarding distributions in excess of earnings per unit).
Page 13
- 13 - Item Assumptions Others • We have assumed that no revisions that impact these forecasts will be made to laws and regulations, tax systems, accounting standards, securities listing regulations and the rules of Investment Management Association of Japan, or others. • We have assumed that no significant unforeseeable changes will occur in general economic trends or conditions in the real estate market, and that no unforeseeable state of affairs outside the control of the Investment Corporation such as an event in the geopolitical sphere, etc. will occur.
Page 14
- 14 - 2. Unaudited Financial Information (1) Balance Sheets (unaudited) (Unit: thousands of yen) Previous fiscal period (As of February 28, 2026) Reporting period (As of August 31, 2026) Assets Current assets Cash and deposits 6,209,524 6,755,005 Cash and deposits in trust 9,259,819 10,085,724 Operating accounts receivable 801,302 367,842 Prepaid expenses 55,854 48,407 Consumption taxes refund receivable 258,826 – Other 6,327 122,018 Total current assets 16,591,655 17,378,997 Noncurrent assets Property, plant and equipment Buildings 780,796 789,944 Accumulated depreciation (143,108) (155,451) Buildings, net 637,687 634,493 Structures 435 435 Accumulated depreciation (14) (25) Structures, net 420 409 Tools, furniture and fixtures 4,529 4,529 Accumulated depreciation (1,593) (1,973) Tools, furniture and fixtures, net 2,935 2,555 Land 589,293 589,293 Buildings in trust 83,170,156 82,904,311 Accumulated depreciation (19,234,288) (19,756,204) Buildings in trust, net 63,935,868 63,148,107 Structures in trust 480,701 475,422 Accumulated depreciation (300,233) (311,618) Structures in trust, net 180,467 163,804 Machinery and equipment in trust 506,066 520,357 Accumulated depreciation (349,493) (354,362) Machinery and equipment in trust, net 156,573 165,994 Tools, furniture and fixtures in trust 188,952 225,993 Accumulated depreciation (99,582) (108,960) Tools, furniture and fixtures in trust, net 89,370 117,033 Land in trust *1 330,251,712 *1 328,853,391 Construction in progress in trust 14,655 312,517 Total property, plant and equipment 395,858,984 393,987,600 Intangible assets Leasehold interests in land 2,345,873 2,345,873 Land leasehold interests in trust 3,488,202 3,482,899 Total intangible assets 5,834,076 5,828,773 Investments and other assets Leasehold and guarantee deposits 360,076 360,125 Long-term prepaid expenses 916,564 930,581 Total investments and other assets 1,276,640 1,290,706 Total noncurrent assets 402,969,701 401,107,079 Deferred assets Investment corporation bond issuance costs 36,892 29,522 Total deferred assets 36,892 29,522 Total assets 419,598,248 418,515,599
Page 15
- 15 - (Unit: thousands of yen) Previous fiscal period (As of February 28, 2026) Reporting period (As of August 31, 2026) Liabilities Current liabilities Operating accounts payable 498,876 996,450 Short-term borrowings 3,880,000 4,600,000 Current portion of investment corporation bonds 1,000,000 3,000,000 Current portion of long-term borrowings 32,498,000 26,571,000 Accounts payable - other 1,699,876 1,571,551 Accrued expenses 18,442 18,568 Income taxes payable 605 605 Accrued consumption taxes 174,081 307,855 Advances received 1,810,080 1,886,952 Deposits received 28,279 10,601 Total current liabilities 41,608,241 38,963,585 Noncurrent liabilities Investment corporation bonds 14,000,000 12,000,000 Long-term borrowings 145,518,000 148,925,000 Leasehold and guarantee deposits received 150,730 131,223 Leasehold and guarantee deposits received in trust 16,270,966 16,522,400 Asset retirement obligations 290,481 291,179 Total noncurrent liabilities 176,230,178 177,869,802 Total liabilities 217,838,420 216,833,388 Net assets Unitholders’ equity Unitholders’ capital 194,754,822 194,754,822 Deduction from unitholders’ capital Allowance for temporary difference adjustments *3 (3,936) *3 (3,936) Total deduction from unitholders’ capital (3,936) (3,936) Unitholders’ capital, net 194,750,886 194,750,886 Surplus Voluntary retained earnings Reserve for tax purpose reduction entry 433,471 665,411 Total voluntary retained earnings 433,471 665,411 Unappropriated retained earnings 6,575,470 6,265,913 Total surplus 7,008,941 6,931,324 Total unitholders’ equity 201,759,827 201,682,210 Total net assets *4 201,759,827 *4 201,682,210 Total liabilities and net assets 419,598,248 418,515,599
Page 16
- 16 - (2) Statements of Income and Retained Earnings (unaudited) (Unit: thousands of yen) Previous fiscal period (From September 1, 2025 to February 28, 2026) Reporting period (From March 1, 2026 to August 31, 2026) Operating revenues Leasing business revenue *1, *4 10,841,245 *1, *4 10,573,303 Other leasing business revenues *1 575,027 *1 534,665 Gain on sale of real estate properties *2, *4 869,584 *2, *4 1,146,145 Gain on exchange of real estate properties *3, *4 367,933 *3, *4 24,421 Total operating revenues 12,653,790 12,278,535 Operating expenses Expenses related to leasing business *1 3,849,536 *1 3,895,414 Asset management fees 1,449,648 1,340,623 Asset custody fees 14,957 14,865 Administrative service fees 48,563 48,151 Remuneration for directors (and other officers) 9,000 9,000 Other operating expenses 273,216 237,448 Total operating expenses 5,644,922 5,545,503 Operating profit 7,008,868 6,733,032 Non-operating income Interest income 26,558 30,953 Gain on forfeiture of unclaimed distributions 209 215 Interest on tax refund 2 808 Insurance income – 116,254 Total non-operating income 26,770 148,232 Non-operating expenses Interest expenses 722,373 842,484 Interest expenses on investment corporation bonds 51,886 51,152 Borrowing related expenses 193,246 223,000 Amortization of investment corporation bond issuance costs 8,013 7,369 Total non-operating expenses 975,520 1,124,007 Ordinary profit 6,060,117 5,757,257 Extraordinary losses Loss on retirement of noncurrent assets – 2,269 Total extraordinary losses – 2,269 Profit before income taxes 6,060,117 5,754,987 Income taxes - current 605 605 Total income taxes 605 605 Profit 6,059,512 5,754,382 Retained earnings brought forward 515,957 511,530 Unappropriated retained earnings 6,575,470 6,265,913
Page 17
- 17 - (3) Statements of Changes in Net Assets (unaudited) Previous fiscal period (From September 1, 2025 to February 28, 2026) (Unit: t housands of yen) Unitholders’ equity Total net assets Unitholders’ capital Surplus Total unitholders’ equity Unitholders’ capital Deduction from unitholders’ capital Unitholders’ capital, net V oluntary retained earnings Unappro- priated retained earnings Total surplus Allowance for temporary difference adjustments Total deduction from unitholders’ capital Reserve for tax purpose reduction entry Total voluntary retained earnings Balance at the beginning of the period 194,754,822 (3,936) (3,936) 194,750,886 173,417 173,417 6,536,011 6,709,429 201,460,315 201,460,315 Changes during the period Provision of reserve for tax purpose reduction entry – – – – 260,053 260,053 (260,053) – – – Dividends of surplus – – – – – – (5,760,000) (5,760,000) (5,760,000) (5,760,000) Profit – – – – – – 6,059,512 6,059,512 6,059,512 6,059,512 Total changes during the period – – – – 260,053 260,053 39,459 299,512 299,512 299,512 Balance at the end of the period *1 194,754,822 (3,936) (3,936) 194,750,886 433,471 433,471 6,575,470 7,008,941 201,759,827 201,759,827 Reporting period (From March 1, 2026 to August 31, 2026) (Unit: t housands of yen) Unitholders’ equity Total net assets Unitholders’ capital Surplus Total unitholders’ equity Unitholders’ capital Deduction from unitholders’ capital Unitholders’ capital, net V oluntary retained earnings Unappro- priated retained earnings Total surplus Allowance for temporary difference adjustments Total deduction from unitholders’ capital Reserve for tax purpose reduction entry Total voluntary retained earnings Balance at the beginning of the period 194,754,822 (3,936) (3,936) 194,750,886 433,471 433,471 6,575,470 7,008,941 201,759,827 201,759,827 Changes during the period Provision of reserve for tax purpose reduction entry – – – – 231,939 231,939 (231,939) – – – Dividends of surplus – – – – – – (5,832,000) (5,832,000) (5,832,000) (5,832,000) Profit – – – – – – 5,754,382 5,754,382 5,754,382 5,754,382 Total changes during the period – – – – 231,939 231,939 (309,557) (77,617) (77,617) (77,617) Balance at the end of the period *1 194,754,822 (3,936) (3,936) 194,750,886 665,411 665,411 6,265,913 6,931,324 201,682,210 201,682,210
Page 18
- 18 - (4) Statements of Cash Distributions (unaudited) (Unit: yen) Fiscal period Item Previous fiscal period (From September 1, 2025 to February 28, 2026) Reporting period (From March 1, 2026 to August 31, 2026) I Unappropriated retained earnings ¥6,575,470,397 ¥6,265,913,324 II Distribution amount ¥5,832,000,000 ¥5,760,000,000 (Distributions per unit) (¥4,050) (¥4,000) III Voluntary retained earnings Provision of reserve for tax purpose reduction entry ¥231,939,836 ¥– IV Retained earnings carried forward ¥511,530,561 ¥505,913,324 Method of calculating distribution amount Pursuant to the distribution policy prescribed in Article 35, Paragraph 1 of the Investment Corporation’s Articles of Incorporation, the distribution amount shall be in excess of an amount equivalent to 90% of earnings available for distributions as defined in Article 67-15 of the Act on Special Measures Concerning Taxation, but not in excess of the amount of earnings. Based on this policy, the Investment Corporation decided to pay distributions of earnings of an amount of ¥5,832,000,000, which was derived by deducting a provision of reserve for tax purpose reduction entry as stipulated in the special provisions for taxation in cases of replacement of certain assets (Article 65-7 of the Act on Special Measures Concerning Taxation), and internal reserves from unappropriated retained earnings. In addition, the Investment Corporation shall not distribute cash in an amount in excess of earnings prescribed in Article 35, Paragraph 2 of the Investment Corporation’s Articles of Incorporation. Pursuant to the distribution policy prescribed in Article 35, Paragraph 1 of the Investment Corporation’s Articles of Incorporation, the distribution amount shall be in excess of an amount equivalent to 90% of earnings available for distributions as defined in Article 67-15 of the Act on Special Measures Concerning Taxation, but not in excess of the amount of earnings. Based on this policy, the Investment Corporation decided to add a portion of its internal reserves to pay distributions of earnings of an amount of ¥5,760,000,000, as initially planned. In addition, the Investment Corporation shall not distribute cash in an amount in excess of earnings prescribed in Article 35, Paragraph 2 of the Investment Corporation’s Articles of Incorporation.
Page 19
- 19 - (5) Statements of Cash Flows (unaudited) (Unit: thousands of yen) Previous fiscal period (From September 1, 2025 to February 28, 2026) Reporting period (From March 1, 2026 to August 31, 2026) Cash flows from operating activities Profit before income taxes 6,060,117 5,754,987 Depreciation and amortization 1,415,937 1,405,853 Amortization of investment corporation bond issuance costs 8,013 7,369 Interest income (26,558) (30,953) Interest expenses 774,260 893,637 Decrease (increase) in operating accounts receivable (581,089) 433,460 Decrease (increase) in consumption taxes refund receivable (258,826) 258,826 Decrease (increase) in prepaid expenses (8,766) 7,447 Increase (decrease) in operating accounts payable (657,804) 483,921 Increase (decrease) in accounts payable - other 22,202 (129,411) Increase (decrease) in accrued consumption taxes (647,776) 133,774 Increase (decrease) in advances received (94,615) 76,872 Increase (decrease) in deposits received 12,652 (17,677) Decrease (increase) in long-term prepaid expenses 31,885 (14,016) Decrease in property, plant and equipment in trust due to sales 3,903,653 6,667,402 Other, net (48,938) (134,523) Subtotal 9,904,346 15,796,969 Interest received 24,815 33,481 Interest paid (778,535) (896,850) Income taxes (paid) refund (605) (605) Net cash provided by (used in) operating activities 9,150,021 14,932,995 Cash flows from investing activities Purchase of property, plant and equipment (21,924) (11,846) Purchase of property, plant and equipment in trust (3,914,612) (6,172,641) Payments of leasehold and guarantee deposits – (49) Refund of leasehold and guarantee deposits received – (15,965) Refund of leasehold and guarantee deposits received in trust (1,765,440) (1,007,542) Proceeds from leasehold and guarantee deposits received in trust 541,744 1,277,134 Net cash provided by (used in) investing activities (5,160,233) (5,930,910) Cash flows from financing activities Proceeds from short-term borrowings 3,880,000 4,600,000 Repayments of short-term borrowings – (3,880,000) Proceeds from long-term borrowings 12,000,000 16,388,000 Repayments of long-term borrowings (14,700,000) (18,908,000) Redemption of investment corporation bonds (3,000,000) – Distributions paid (5,760,053) (5,830,698) Net cash provided by (used in) financing activities (7,580,053) (7,630,698) Net increase (decrease) in cash and cash equivalents (3,590,265) 1,371,386 Cash and cash equivalents at beginning of period 19,059,608 15,469,343 Cash and cash equivalents at end of period *1 15,469,343 *1 16,840,729
Page 20
- 20 - (6) Notes on Going Concern Assumption (unaudited) Not applicable. (7) Notes on Significant Accounting Policies (unaudited) 1. Method of depreciation and amortization of noncurrent assets (1) Property, plant and equipment (including assets in trust) The straight-line method is used. The estimated useful lives of property, plant and equipment are listed below. Buildings 3 to 64 years Structures 4 to 20 years Machinery and equipment 3 to 10 years Tools, furniture and fixtures 3 to 15 years (2) Intangible assets The straight-line method is used. Internal use software is amortized over the estimated useful life (5 years). (3) Long-term prepaid expenses The straight-line method is used. 2. Accounting method for deferred assets (1) Investment corporation bond issuance costs Amortized by the straight-line method over period until redemption. (2) Investment unit issuance costs Amortized by the straight-line method over a three-year period. 3. Recognition of revenue and expenses (1) Recognition of revenue The content of principal performance obligations regarding revenue from contracts with customers and the normal timing when those obligations are satisfied (normal timing when revenue is recognized) is described below. (i) Sales of real estate properties For sales of real estate properties, revenue is recorded at the timing that control of the real estate property is acquired by the purchaser, which is the customer, through fulfillment of the delivery obligations specified in the contract for the sale of the real estate property. (ii) Revenue from utilities charges For revenue from utilities charges, revenue is recorded commensurately to the supply of electricity, water, etc. to the lessee, which is the customer, based on the lease agreement of the real estate properties, and details of related agreements. Among the revenue from utilities charges, the revenue from a transaction in which the Investment Corporation is considered to be an agent shall be recognized as the net amount calculated by deducting the amount paid to a third party from the amount received as fee income for the electricity, gas, etc. supplied by that third party. (2) Fixed asset tax and related taxes For fixed asset tax, city planning tax, depreciable asset tax, etc. for real estate properties held, the amount of tax levied corresponding to the relevant accounting period is recorded as expenses related to leasing business. The amount equivalent to fixed asset tax and related taxes for the fiscal year that includes the date on which we paid settlement money to the transferor for acquisition of real estate, etc. is not recorded as expenses related to leasing business but included in the acquisition costs for the related properties. The amount equivalent to fixed asset tax included in acquisition costs for properties was ¥32,593 thousand for the previous fiscal period, and ¥61,459 thousand for the reporting period.
Page 21
- 21 - 4. Hedge accounting method (1) Method of hedge accounting Deferred hedge accounting is used for interest rate swaps. For interest rate swaps that satisfy requirements for special treatment, however, special treatment is used. (2) Hedging instruments and hedged items Hedging instruments: Interest rate swaps Hedged items: Interest on borrowings (3) Hedging policy The Investment Corporation conducts derivative transactions for the purpose of hedging risks provided for in the Articles of Incorporation of the Investment Corporation pursuant to the basic policy of risk management. (4) Method of assessing hedge effectiveness The assessment of hedge effectiveness is omitted since the interest rate swaps satisfy the requirements for special treatment. 5. Scope of cash and cash equivalents in the statements of cash flows Cash and cash equivalents in the statements of cash flows are composed of cash on hand, cash in trust, demand deposits, deposits in trust, and short-term investments that are readily convertible, bear little risk in price fluctuations, and mature within 3 months of the date of acquisition. 6. Other information for preparation of financial statements (1) Accounting method for beneficial interests in trust in real estate With regard to beneficial interests in trust in real estate, all assets and liabilities within assets in trust as well as all revenue and expense items associated with assets in trust are accounted for under the respective account items of the balance sheets and statements of income and retained earnings. Of the assets in trust accounted for under the respective account items, the following significant items are separately indicated on the balance sheets: i) Cash and deposits in trust ii) Buildings in trust; structures in trust; machinery and equipment in trust; tools, furniture and fixtures in trust; land in trust; and construction in progress in trust iii) Land leasehold interests in trust iv) Leasehold and guarantee deposits received in trust (2) Accounting method for consumption taxes unqualified for deduction for tax purposes Consumption taxes unqualified for deduction for tax purposes for acquisition of assets are included in acquisition cost for each asset. Additional information Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments (unaudited) Previous fiscal period (From September 1, 2025 to February 28, 2026) Not applicable. Reporting period (From March 1, 2026 to August 31, 2026) Not applicable.
Page 22
- 22 - (8) Notes to Financial Information (unaudited) Notes to Balance Sheets (unaudited) *1. Amount of reduction entries for noncurrent assets acquired through exchange Previous fiscal period (As of February 28, 2026) Reporting period (As of August 31, 2026) Land in trust ¥6,084,434 thousand ¥5,062,009 thousand 2. Commitment line contracts The Investment Corporation has commitment line contracts with the banks with which it does business. Previous fiscal period (As of February 28, 2026) Reporting period (As of August 31, 2026) Total amount of commitment line contracts ¥13,500,000 thousand ¥13,500,000 thousand Balance of borrowings outstanding – – Difference ¥13,500,000 thousand ¥13,500,000 thousand *3. Allowance for temporary difference adjustments Previous fiscal period (As of February 28, 2026) 1. Reason for provision and reversal, related assets, etc., and amount provided (Unit: thousands of yen) Related assets, etc. Reason Initial amount Balance at the beginning of the period Amount of provision for the period Amount of reversal for the period Balance at the end of the period Reason for reversal Buildings in trust Discrepancies in tax and accounting treatment in connection with the recognition of expenses related to asset retirement obligations 3,936 3,936 – – 3,936 – 2. Specific method for reversal At the time of retirement of the asset, etc., the amount to be treated will be reversed.
Page 23
- 23 - Reporting period (As of August 31, 2026) 1. Reason for provision and reversal, related assets, etc., and amount provided (Unit: thousands of yen) Related assets, etc. Reason Initial amount Balance at the beginning of the period Amount of provision for the period Amount of reversal for the period Balance at the end of the period Reason for reversal Buildings in trust Discrepancies in tax and accounting treatment in connection with the recognition of expenses related to asset retirement obligations 3,936 3,936 – – 3,936 – 2. Specific method for reversal At the time of retirement of the asset, etc., the amount to be treated will be reversed. *4. Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations Previous fiscal period (As of February 28, 2026) Reporting period (As of August 31, 2026) ¥50,000 thousand ¥50,000 thousand
Page 24
- 24 - Notes to Statements of Income and Retained Earnings (unaudited) *1. Components of income (loss) from real estate leasing business (Unit: thousands of yen) Previous fiscal period (From September 1, 2025 to February 28, 2026) Reporting period (From March 1, 2026 to August 31, 2026) A. Real estate leasing business revenues Leasing business revenue Rent 10,055,543 9,901,922 Land rent 265,031 175,343 Common service fees 520,670 496,036 Total 10,841,245 10,573,303 Other leasing business revenues Revenue from utilities charges 418,668 339,605 Other revenue 156,358 195,059 Total 575,027 534,665 Total real estate leasing business revenues 11,416,272 11,107,969 B. Expenses related to real estate leasing business Expenses related to leasing business Property management fees 615,645 597,824 Utilities expenses 462,420 435,489 Taxes and public dues 935,264 983,873 Insurance expenses 18,986 20,080 Repair expenses 153,258 188,986 Depreciation and amortization 1,415,769 1,405,853 Other expenses related to leasing business 248,191 263,305 Total expenses related to real estate leasing business 3,849,536 3,895,414 C. Income (loss) from real estate leasing business (A – B) 7,566,736 7,212,554 *2. Components of gain (loss) on sale of real estate properties Previous fiscal period (From September 1, 2025 to February 28, 2026) Ikebukuro Network Center (Unit: thousands of yen) Proceeds from sale of real estate properties 5,350,000 Cost of sale of real estate properties 4,440,110 Other expenses for the sale 102,157 Gain on sale of real estate properties 807,732
Page 25
- 25 - Nagano Network Center (Unit: thousands of yen) Proceeds from sale of real estate properties 350,000 Cost of sale of real estate properties 285,216 Other expenses for the sale 2,930 Gain on sale of real estate properties 61,852 Reporting period (From March 1, 2026 to August 31, 2026) Tabata Network Center (Unit: thousands of yen) Proceeds from sale of real estate properties 1,650,000 Cost of sale of real estate properties 1,331,721 Other expenses for the sale 7,572 Gain on sale of real estate properties 310,706 Hiroshima Network Center (Unit: thousands of yen) Proceeds from sale of real estate properties 1,250,000 Cost of sale of real estate properties 986,401 Other expenses for the sale 6,739 Gain on sale of real estate properties 256,858 Atsuta Network Center (Unit: thousands of yen) Proceeds from sale of real estate properties 1,040,000 Cost of sale of real estate properties 920,925 Other expenses for the sale 5,654 Gain on sale of real estate properties 113,419 Sapporo Network Center (Unit: thousands of yen) Proceeds from sale of real estate properties 2,700,000 Cost of sale of real estate properties 2,432,727 Other expenses for the sale 14,242 Gain on sale of real estate properties 253,030
Page 26
- 26 - Keihanna Network Center (Unit: thousands of yen) Proceeds from sale of real estate properties 1,360,000 Cost of sale of real estate properties 1,139,903 Other expenses for the sale 7,965 Gain on sale of real estate properties 212,130 *3. Components of gain on exchange of real estate properties Previous fiscal period (From September 1, 2025 to February 28, 2026) Hulic Kamiyacho Building (quasi co- ownership interest: 56.0%) (Unit: thousands of yen) Consideration for transfer of real estate properties 37,520,000 Cost of transfer of real estate properties 30,873,605 Other expenses for the transfer 194,027 Amount of reduction entry of noncurrent assets 6,084,434 Gain on exchange of real estate properties 367,933 Reporting period (From March 1, 2026 to August 31, 2026) Hulic Kamiyacho Building (quasi co- ownership interest: 9.0%) (Unit: thousands of yen) Consideration for transfer of real estate properties 6,030,000 Cost of transfer of real estate properties 4,964,218 Other expenses for the transfer 35,935 Amount of reduction entry of noncurrent assets 1,022,941 Gain on exchange of real estate properties 6,904 Hulic Kudan Building (Land) (Unit: thousands of yen) Consideration for transfer of real estate properties 15,300,000 Cost of transfer of real estate properties 11,191,213 Other expenses for the transfer 52,201 Amount of reduction entry of noncurrent assets 4,039,067 Gain on exchange of real estate properties 17,517
Page 27
- 27 - *4. Transactions with major corporate unitholders (Unit: thousands of yen) Previous fiscal period (From September 1, 2025 to February 28, 2026) Reporting period (From March 1, 2026 to August 31, 2026) From operating transactions Leasing business revenue 796,533 706,726 Gain on sale of real estate properties 869,584 1,146,145 Gain on exchange of real estate properties 367,933 24,421 Notes to Statements of Changes in Net Assets (unaudited) *1. Total number of authorized investment units and total number of investment units issued Previous fiscal period (From September 1, 2025 to February 28, 2026) Reporting period (From March 1, 2026 to August 31, 2026) Total number of authorized investment units 20,000,000 units 20,000,000 units Total number of investment units issued at end of period 1,440,000 units 1,440,000 units Notes to Statements of Cash Flows (unaudited) *1. Reconciliation between cash and cash equivalents at end of period and relevant amount on the balance sheets (Unit: thousands of yen) Previous fiscal period (From September 1, 2025 to February 28, 2026) Reporting period (From March 1, 2026 to August 31, 2026) Cash and deposits 6,209,524 6,755,005 Cash and deposits in trust 9,259,819 10,085,724 Total cash and cash equivalents 15,469,343 16,840,729 2. Details of significant non-cash transactions Previous fiscal period (From September 1, 2025 to February 28, 2026) The Investment Corporation conducted an exchange transaction of noncurrent assets on September 30, 2025. The main non-cash transactions arising from this transaction are as follows. (Unit: thousands of yen) Amount of properties acquired through exchange (38,000,000) Amount of properties transferred through exchange 37,520,000 Cash received related to the exchange transaction (Displayed as included in “Purchase of property, plant and equipment in trust”) (480,000)
Page 28
- 28 - Reporting period (From March 1, 2026 to August 31, 2026) The Investment Corporation conducted an exchange transaction of noncurrent assets on June 30, 2026. The main non-cash transactions arising from this transaction are as follows. (Unit: thousands of yen) Amount of properties acquired through exchange (22,863,000) Amount of properties transferred through exchange 21,330,000 Cash received related to the exchange transaction (Displayed as included in “Purchase of property, plant and equipment in trust”) (1,533,000) Notes on Financial Instruments (unaudited) 1. Matters regarding status of financial instruments (1) Policy for handling financial instruments The Investment Corporation procures funds for acquisition of assets, repairs and repayment of debt primarily through borrowings from financial institutions, issuance of investment corporation bonds and issuance of investment units. In procuring interest-bearing debt, the Investment Corporation takes into account a balance between flexibility in procurement of funds and financial stability. Furthermore, the Investment Corporation conducts derivative transactions only for the purpose of hedging fluctuation risk of interest rates for borrowings and does not conduct any speculative transactions. (2) Description of financial instruments and associated risks, and risk management structure Deposits are used for investment of our surplus funds. These deposits are exposed to credit risk such as bankruptcy of the depository financial institutions. Deposits are carried out with safety and redeemability taken into consideration and are limited to those with short-term deposit periods. Borrowings and investment corporation bonds are mainly for the purpose of acquiring properties and refinancing of existing borrowings. Of these, borrowings with floating interest rates are exposed to interest rate fluctuation risk. To avoid this fluctuation risk, the Investment Corporation uses derivative transactions (interest rate swaps) for some of these borrowings as hedging instruments, which, in effect, convert floating interest rates into fixed interest rates. For the method of hedge accounting, hedging instruments and hedged items, hedging policy and the method of assessing hedge effectiveness, please refer to “4. Method of hedge accounting” in “Notes on Significant Accounting Policies” above. (3) Supplemental explanation on matters regarding fair values, etc. of financial instruments Since a number of variables are factored into the measurement of fair values of financial instruments, such fair value may vary if different assumptions are used. The contract amounts related to derivatives mentioned in “Notes on Derivative Transactions” below should not be considered indicative of the market risk associated with the derivative transactions. 2. Matters regarding fair value, etc. of financial instruments Balance sheet carrying amount, fair value, and the difference between the two values as of February 28, 2026 are shown below. Note that as “cash and deposits,” “cash and deposits in trust” and “short-term borrowings” are settled in cash in a short period of time, the fair value is considered approximate to the book value, and accordingly, notes on fair value for those items are omitted. Moreover, notes on fair
Page 29
- 29 - value for “leasehold and guarantee deposits received” and “leasehold and guarantee deposits received in trust” are omitted due to immateriality. (Unit: thousands of yen) Balance sheet carrying amount Fair value Difference (1) Current portion of investment corporation bonds 1,000,000 992,700 (7,300) (2) Current portion of long-term borrowings 32,498,000 32,340,646 (157,353) (3) Investment corporation bonds 14,000,000 13,603,200 (396,800) (4) Long-term borrowings 145,518,000 138,516,639 (7,001,360) Total liabilities 193,016,000 185,453,186 (7,562,813) Derivative transactions – – – Balance sheet carrying amount, fair value, and the difference between the two values as of August 31, 2026 are shown below. Note that as “cash and deposits,” “cash and deposits in trust” and “short-term borrowings” are settled in cash in a short period of time, the fair value is considered approximate to the book value, and accordingly, notes on fair value for those items are omitted. Moreover, notes on fair value for “leasehold and guarantee deposits received” and “leasehold and guarantee deposits received in trust” are omitted due to immateriality. (Unit: thousands of yen) Balance sheet carrying amount Fair value Difference (1) Current portion of investment corporation bonds 3,000,000 2,975,100 (24,900) (2) Current portion of long-term borrowings 26,571,000 26,324,548 (246,451) (3) Investment corporation bonds 12,000,000 11,559,900 (440,100) (4) Long-term borrowings 148,925,000 139,570,492 (9,354,507) Total liabilities 190,496,000 180,430,040 (10,065,959) Derivative transactions – – – (Note 1) Measurement of fair values of financial instruments and matters regarding derivative transactions Liabilities (1) Current portion of investment corporation bonds, and (3) Investment corporation bonds Fair value has been calculated on the basis of reference quotations of sales-purchase transactions and other such data, as provided by financial institutions and other such entities. (2) Current portion of long-term borrowings, and (4) Long-term borrowings Since long-term borrowings that carry floating interest rates are reviewed on a short-term interval to reflect market interest rates, and the Investment Corporation’s credit standing did not change significantly after the execution of loans, their fair value is considered approximate to the book value. Therefore, the book value is used as the fair value of these liabilities (however, for long-term borrowings with floating interest rates to which special treatment for interest rate swaps is applied (please refer to “Notes on Derivative Transactions” below), the fair value is calculated by discounting the sum of principal and interest, which are treated in combination with such interest rate swap, at a reasonable rate estimated for a similar new loan that is made corresponding to the remaining period). The fair value of long-term borrowings carrying fixed interest rates is calculated by discounting the
Page 30
- 30 - sum of principal and interest at a reasonable rate estimated for a similar new loan that is made corresponding to the remaining period. Derivative transactions Please refer to “Notes on Derivative Transactions” below. (Note 2) Redemption of investment corporation bonds, long-term borrowings and other interest-bearing debt scheduled to be due after the balance sheet date Previous fiscal period (As of February 28, 2026) (Unit: thousands of yen) Due within 1 year Due after 1 year, but within 2 years Due after 2 years, but within 3 years Due after 3 years, but within 4 years Due after 4 years, but within 5 years Due after 5 years Investment corporation bonds 1,000,000 2,000,000 7,000,000 5,000,000 – – Long-term borrowings 32,498,000 27,954,000 23,644,000 33,685,000 33,469,000 26,766,000 Total 33,498,000 29,954,000 30,644,000 38,685,000 33,469,000 26,766,000 Reporting period (As of August 31, 2026) (Unit: thousands of yen) Due within 1 year Due after 1 year, but within 2 years Due after 2 years, but within 3 years Due after 3 years, but within 4 years Due after 4 years, but within 5 years Due after 5 years Investment corporation bonds 3,000,000 7,000,000 3,000,000 2,000,000 – – Long-term borrowings 26,571,000 23,373,000 32,007,000 34,410,000 33,908,000 25,227,000 Total 29,571,000 30,373,000 35,007,000 36,410,000 33,908,000 25,227,000 Notes on Derivative Transactions (unaudited) 1. Derivative transactions not applying hedge accounting Not applicable for the previous fiscal period (as of February 28, 2026) and the reporting period (as of August 31, 2026). 2. Derivative transactions applying hedge accounting Previous fiscal period (As of February 28, 2026) The contracted amount or principal amount equivalent or the like set forth in the contract as of the balance sheet date for each hedge accounting method is as follows: (Unit: thousands of yen) Hedge accounting method Type of derivative transaction Major hedged item Contracted amount Fair value Measurement method for fair value Portion due after 1 year Special treatment of interest rate swaps Interest rate swap transaction Payment: fixed interest rate / Receipt: floating interest rate Long-term borrowings 58,413,000 39,863,000 * – * Interest rate swap transactions to which special treatment is applied are accounted for as an integral part of long-term borrowings, a hedged item. Thus, their fair values are included in the fair value of long-term borrowings (please refer to the preceding “Notes on Financial Instruments, 2. Matters regarding fair value, etc. of financial instruments, (Note 1) Measurement of fair values of financial instruments and matters regarding derivative transactions, Liabilities (2) Current portion of long-term borrowings, and (4) Long-term borrowings”).
Page 31
- 31 - Reporting period (As of August 31, 2026) The contracted amount or principal amount equivalent or the like set forth in the contract as of the balance sheet date for each hedge accounting method is as follows: (Unit: thousands of yen) Hedge accounting method Type of derivative transaction Major hedged item Contracted amount Fair value Measurement method for fair value Portion due after 1 year Special treatment of interest rate swaps Interest rate swap transaction Payment: fixed interest rate / Receipt: floating interest rate Long-term borrowings 49,943,000 32,488,000 * – * Interest rate swap transactions to which special treatment is applied are accounted for as an integral part of long-term borrowings, a hedged item. Thus, their fair values are included in the fair value of long-term borrowings (please refer to the preceding “Notes on Financial Instruments, 2. Matters regarding fair value, etc. of financial instruments, (Note 1) Measurement of fair values of financial instruments and matters regarding derivative transactions, Liabilities (2) Current portion of long-term borrowings, and (4) Long-term borrowings”). Notes on Tax Effect Accounting (unaudited) 1. Breakdown of significant components of deferred tax assets and deferred tax liabilities (Unit: thousands of yen) Previous fiscal period (As of February 28, 2026) Reporting period (As of August 31, 2026) Deferred tax assets Excess depreciation 2,773 2,998 Asset retirement obligations 91,168 91,168 Total deferred tax assets 93,941 94,167 Valuation allowance (93,941) (94,167) Net deferred tax assets – – 2. Reconciliation of significant differences between the statutory tax rate and the effective tax rate (Unit: %) Previous fiscal period (As of February 28, 2026) Reporting period (As of August 31, 2026) Statutory tax rate 31.46 31.46 (Adjustments) Distributions paid included in expenses (30.28) (31.48) Provision of reserve for tax purpose reduction entry (1.20) – Others 0.03 0.03 Effective tax rate 0.01 0.01
Page 32
- 32 - Notes on Related Party Transactions (unaudited) 1. Parent company and major corporate unitholders Previous fiscal period (From September 1, 2025 to February 28, 2026) Type Name Location Share capital or investments in capital (Thousands of yen) Description of business Percentage of voting rights held in (by) related party Relationship Description of transaction Amount of transaction (Thousands of yen) Account item Balance at end of period (Thousands of yen) Inter- locking officers, etc. Business relationship Major corporate unitholder Hulic Co., Ltd. 7-3, Nihonbashi Odenma- cho, Chuo- ku, Tokyo 111,609,853 Real estate business Directly held by related party 14.50% None Leasing and manage- ment of real estate Purchase of real estate trust beneficiary rights 38,000,000 – – Transfer of real estate trust beneficiary rights 43,220,000 – – Acceptance of leasehold and guarantee deposits received in trust 575,796 Leasehold and guarantee deposits received in trust 13,619,418 Repayment of leasehold and guarantee deposits received in trust 1,649,202 Earning of rent revenue, etc. 796,533 Advances received 141,614 (Note 1) In the amounts in the above table, consumption taxes are not included in amount of transaction but are included in balance at end of period. (Note 2) Transaction terms are determined based on current market prices. Reporting period (From March 1, 2026 to August 31, 2026) Type Name Location Share capital or investments in capital (Thousands of yen) Description of business Percentage of voting rights held in (by) related party Relationship Description of transaction Amount of transaction (Thousands of yen) Account item Balance at end of period (Thousands of yen) Inter- locking officers, etc. Business relationship Major corporate unitholder Hulic Co., Ltd. 7-3, Nihonbashi Odenma- cho, Chuo- ku, Tokyo 111,609,853 Real estate business Directly held by related party 14.50% None Leasing and manage- ment of real estate Purchase of real estate trust beneficiary rights 22,863,000 – – Transfer of real estate trust beneficiary rights 29,330,000 – – Acceptance of leasehold and guarantee deposits received in trust 1,284,918 Leasehold and guarantee deposits received in trust 14,125,110 Repayment of leasehold and guarantee deposits received in trust 760,723 Earning of rent revenue, etc. 706,726 Advances received 97,447 (Note 1) In the amounts in the above table, consumption taxes are not included in amount of transaction but are included in balance at end of period. (Note 2) Transaction terms are determined based on current market prices.
Page 33
- 33 - 2. Subsidiaries and affiliates Not applicable for the previous fiscal period (from September 1, 2025 to February 28, 2026) and the reporting period (from March 1, 2026 to August 31, 2026). 3. Subsidiaries of parent company Previous fiscal period (From September 1, 2025 to February 28, 2026) Type Name Location Share capital or investments in capital (Thousands of yen) Description of business Percentage of voting rights held in (by) related party Relationship Description of transaction Amount of transaction (Thousands of yen) Account item Balance at end of period (Thousands of yen) Inter- locking officers, etc. Business relationship Company in which major unitholder (corporation) owns a majority of voting rights Hulic Reit Management Co., Ltd. 2-3-11 Kanda Surugadai, Chiyoda- ku, Tokyo 200,000 Business related to management of investment corpora- tion’s assets under management – One Consignment of asset management Payment of asset management fee (Note 1) 1,659,908 Accounts payable - other 1,594,613 Company in which major unitholder (corporation) owns a majority of voting rights Hulic Hotel Management Co., Ltd. 13-8, Nihonba- shikobuna- cho, Chuo- ku, Tokyo 6,500,000 Manage- ment and operation of hotels – None Leasing and management of real estate Earning of rent revenue, etc. 1,490,107 Operating accounts receivable 585,830 Advances received 155,833 Leasehold and guarantee deposits received in trust 825,000 (Note 1) Payment of asset management fee includes the portion of compensation associated with a property acquisition factored into the book value of the individual properties (¥102,210 thousand) and the portion of compensation associated with a property transfer deducted from gain on sale of real estate properties of the individual properties (¥108,050 thousand). (Note 2) In the amounts in the above table, consumption taxes are not included in amount of transaction but are included in balance at end of period. (Note 3) Transaction terms are determined based on current market prices.
Page 34
- 34 - Reporting period (From March 1, 2026 to August 31, 2026) Type Name Location Share capital or investments in capital (Thousands of yen) Description of business Percentage of voting rights held in (by) related party Relationship Description of transaction Amount of transaction (Thousands of yen) Account item Balance at end of period (Thousands of yen) Inter- locking officers, etc. Business relationship Company in which major unitholder (corporation) owns a majority of voting rights Hulic Reit Management Co., Ltd. 2-3-11 Kanda Surugadai, Chiyoda- ku, Tokyo 200,000 Business related to management of investment corpora- tion’s assets under management – One Consignment of asset management Payment of asset management fee (Note 1) 1,478,815 Accounts payable - other 1,474,685 Company in which major unitholder (corporation) owns a majority of voting rights Hulic Hotel Management Co., Ltd. 13-8, Nihonba- shikobuna- cho, Chuo- ku, Tokyo 6,500,000 Manage- ment and operation of hotels – None Leasing and management of real estate Earning of rent revenue, etc. 1,523,309 Operating accounts receivable 361,332 Advances received 155,833 Leasehold and guarantee deposits received in trust 825,000 (Note 1) Payment of asset management fee includes the portion of compensation associated with a property acquisition factored into the book value of the individual properties (¥64,867 thousand) and the portion of compensation associated with a property transfer deducted from gain on sale of real estate properties of the individual properties (¥73,325 thousand). (Note 2) In the amounts in the above table, consumption taxes are not included in amount of transaction but are included in balance at end of period. (Note 3) Transaction terms are determined based on current market prices. 4. Officers and major individual unitholders Previous fiscal period (From September 1, 2025 to February 28, 2026) Transactions carried out by Kazuaki Chokki, Executive Officer of the Investment Corporation, as the Representative of a third party (Hulic Reit Management Co., Ltd.) are as shown above in transactions with Hulic Reit Management Co., Ltd. in “3. Subsidiaries of parent company.” Reporting period (From March 1, 2026 to August 31, 2026) Transactions carried out by Kazuaki Chokki, Executive Officer of the Investment Corporation, as the Representative of a third party (Hulic Reit Management Co., Ltd.) are as shown above in transactions with Hulic Reit Management Co., Ltd. in “3. Subsidiaries of parent company.” Notes on Asset Retirement Obligations (unaudited) Asset retirement obligations recorded in the balance sheets 1. Overview of asset retirement obligations For Hulic Asakusabashi Building acquired on December 20, 2019, the Investment Corporation has restoration obligations under an agreement for establishment of a fixed-term land sublease right for business use and recorded asset retirement obligations. 2. Calculation of the amount of the asset retirement obligations The expected usable period is estimated to be the period from the acquisition of the asset to the expiry of the agreement, which is 45 years and one month, and the amount of the asset retirement obligations was calculated using the discount rate of 0.48%.
Page 35
- 35 - 3. Increase or decrease in the total amount of the asset retirement obligations (Unit: thousands of yen) Previous fiscal period (From September 1, 2025 to February 28, 2026) Reporting period (From March 1, 2026 to August 31, 2026) Balance at beginning of period 289,786 290,481 Increase in connection with the acquisition of property, plant and equipment – – Adjustment due to passage of time 695 697 Balance at end of period 290,481 291,179 Notes on Investment and Rental Properties (unaudited) The Investment Corporation owns rental office buildings and other properties in Tokyo and other regions for rent revenue. The balance sheet carrying amounts, changes during the period, and fair values of these rental properties are as follows: (Unit: thousands of yen) Previous fiscal period (From September 1, 2025 to February 28, 2026) Reporting period (From March 1, 2026 to August 31, 2026) Balance sheet carrying amount Balance at beginning of period 402,963,891 401,693,060 Changes during period (1,270,831) (1,876,687) Balance at end of period 401,693,060 399,816,373 Fair value at end of period 486,729,000 491,212,000 (Note 1) The balance sheet carrying amount is the acquisition cost less accumulated depreciation. (Note 2) The main reason for the increase in the investment and rental properties during the previous fiscal period is the acquisition of real estate trust beneficiary rights of 2 properties (¥35,008,115 thousand) and the decrease is mainly due to transfer of real estate trust beneficiary rights of 3 properties (¥35,598,932 thousand) and depreciation and amortization (¥1,415,074 thousand). The main reason for the increase during the reporting period is the acquisition of real estate trust beneficiary rights of 3 properties (¥21,074,210 thousand) and the decrease is mainly due to transfer of real estate trust beneficiary rights of 7 properties (¥22,967,112 thousand) and depreciation and amortization (¥1,405,156 thousand). (Note 3) The fair value at end of period is the appraisal value provided by an independent real estate appraiser. Concerning the fair value at the end of the previous fiscal period, the fair value of Tabata Network Center, Hiroshima Network Center, Atsuta Network Center, Sapporo Network Center and Keihanna Network Center therein is based on the transfer price stated on the trust beneficiary right sales agreement entered into on March 10, 2026. Concerning the fair value at the end of the reporting period, the fair value of Hulic Kojimachi Building, Hulic Shibuya 1 Chome Building and Trust Garden Yoganomori therein is based on the transfer price stated on the trust beneficiary right quasi co-ownership interest exchange agreement entered into on September 25, 2026. The profit or loss concerning investment and rental properties is indicated under “Notes to Statements of Income and Retained Earnings” above. Notes on Segment and Related Information (unaudited) Segment information Disclosure is omitted as the Investment Corporation is comprised of a single reportable segment engaged in the real estate leasing business. Related information Previous fiscal period (From September 1, 2025 to February 28, 2026) 1. Information by product and service Disclosure is omitted as operating revenues from external customers of products and services within a single segment are more than 90% of operating revenues on the statements of income and retained earnings.
Page 36
- 36 - 2. Information by geographical area (1) Operating revenues Disclosure is omitted since operating revenues from external customers in Japan exceeded 90% of operating revenues on the statements of income and retained earnings. (2) Property, plant and equipment Disclosure is omitted since the amount of property, plant and equipment located in Japan exceeded 90% of property, plant and equipment on the balance sheet. 3. Information by major customer (Unit: thousands of yen) Counterparty Operating revenues Related segment Hulic Group 3,623,349 Real estate leasing business Mizuho Financial Group 1,468,265 Real estate leasing business Reporting period (From March 1, 2026 to August 31, 2026) 1. Information by product and service Disclosure is omitted as operating revenues from external customers of products and services within a single segment are more than 90% of operating revenues on the statements of income and retained earnings. 2. Information by geographical area (1) Operating revenues Disclosure is omitted since operating revenues from external customers in Japan exceeded 90% of operating revenues on the statements of income and retained earnings. (2) Property, plant and equipment Disclosure is omitted since the amount of property, plant and equipment located in Japan exceeded 90% of property, plant and equipment on the balance sheet. 3. Information by major customer (Unit: thousands of yen) Counterparty Operating revenues Related segment Hulic Group 3,459,098 Real estate leasing business Mizuho Financial Group 1,489,447 Real estate leasing business
Page 37
- 37 - Notes on Revenue Recognition (unaudited) 1. Information on disaggregation of revenue from contracts with customers Previous fiscal period (From September 1, 2025 to February 28, 2026) (Unit: thousands of yen) Revenue from contracts with customers (Note 1) Sales to external customers Sales of real estate properties 43,220,000 (Note 2) 1,237,517 Revenue from utilities charges 418,668 418,668 Other – 10,997,604 Total 43,638,668 12,653,790 (Note 1) Items such as leasing business revenue, to which “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13) is applied, and transfers of real estate properties to which “Practical Guidelines on the Accounting by Transferors for the Securitization of Real Estate Using Special-Purpose Companies” (ASBJ Transferred Guidance No. 10) is applied, are outside the scope of application of the Accounting Standard for Revenue Recognition and not included in the above amounts. Note that revenue from contracts with customers is mainly proceeds from sale of real estate properties and utilities revenue. (Note 2) For sales of real estate properties, the revenue is recorded as gain (loss) on sale of real estate properties and gain (loss) on exchange of real estate properties in the statements of income and retained earnings, and accordingly, the amount stated is calculated by deducting cost of sale of real estate properties, other expenses for the sale, and the amount of reduction entry of noncurrent assets from the proceeds from sale of real estate properties. Reporting period (From March 1, 2026 to August 31, 2026) (Unit: thousands of yen) Revenue from contracts with customers (Note 1) Sales to external customers Sales of real estate properties 29,330,000 (Note 2) 1,170,566 Revenue from utilities charges 339,605 339,605 Other – 10,768,363 Total 29,669,605 12,278,535 (Note 1) Items such as leasing business revenue, to which “Accounting Standard for Lease Transactions” (ASBJ Statement No. 13) is applied, and transfers of real estate properties to which “Practical Guidelines on the Accounting by Transferors for the Securitization of Real Estate Using Special-Purpose Companies” (ASBJ Transferred Guidance No. 10) is applied, are outside the scope of application of the Accounting Standard for Revenue Recognition and not included in the above amounts. Note that revenue from contracts with customers is mainly proceeds from sale of real estate properties and utilities revenue. (Note 2) For sales of real estate properties, the revenue is recorded as gain (loss) on sale of real estate properties and gain (loss) on exchange of real estate properties in the statements of income and retained earnings, and accordingly, the amount stated is calculated by deducting cost of sale of real estate properties, other expenses for the sale, and the amount of reduction entry of noncurrent assets from the proceeds from sale of real estate properties. 2. Information as a basis to understand revenue from contracts with customers Previous fiscal period (From September 1, 2025 to February 28, 2026) As presented in “Notes on Significant Accounting Policies (unaudited).” Reporting period (From March 1, 2026 to August 31, 2026) As presented in “Notes on Significant Accounting Policies (unaudited).” 3. Information on the relationship between the satisfaction of performance obligations based on contracts with customers and cash flows from the contracts, as well as the amounts of revenue expected to be recognized in the following accounting period or later from contracts with customers existing at the end of the current accounting period and the timing of the revenue recognition
Page 38
- 38 - Previous fiscal period (From September 1, 2025 to February 28, 2026) Transaction price allocated to remaining performance obligations Not applicable. With regard to revenue from utilities charges, for the portion for which the performance is completed by the end of the period, the Investment Corporation has the right to receive from the customer the amount of consideration corresponding directly to the value to the lessee, who is the customer, and therefore, in accordance with paragraph 19 of the Implementation Guidance on Accounting Standard for Revenue Recognition, revenues are recognized for the amount for which the Investment Corporation holds the right to request payment. Accordingly, by applying the provisions of paragraph 80-22 (2) of the “Accounting Standard for Revenue Recognition,” utilities charges are not included in this note to transaction price allocated to remaining performance obligations. Reporting period (From March 1, 2026 to August 31, 2026) Transaction price allocated to remaining performance obligations Not applicable. With regard to revenue from utilities charges, for the portion for which the performance is completed by the end of the period, the Investment Corporation has the right to receive from the customer the amount of consideration corresponding directly to the value to the lessee, who is the customer, and therefore, in accordance with paragraph 19 of the Implementation Guidance on Accounting Standard for Revenue Recognition, revenues are recognized for the amount for which the Investment Corporation holds the right to request payment. Accordingly, by applying the provisions of paragraph 80-22 (2) of the “Accounting Standard for Revenue Recognition,” utilities charges are not included in this note to transaction price allocated to remaining performance obligations. Notes on Per Unit Information (unaudited) Previous fiscal period (From September 1, 2025 to February 28, 2026) Reporting period (From March 1, 2026 to August 31, 2026) Net assets per unit ¥140,110 ¥140,057 Basic earnings per unit ¥4,207 ¥3,996 (Note 1) Basic earnings per unit is calculated by dividing profit by the day-weighted average number of investment units for the period. Fully diluted earnings per unit is not presented, as there is no potential investment unit. (Note 2) The basis for calculating basic earnings per unit is as follows: Previous fiscal period (From September 1, 2025 to February 28, 2026) Reporting period (From March 1, 2026 to August 31, 2026) Profit (Thousands of yen) ¥6,059,512 ¥5,754,382 Amount not attributable to common unitholders (Thousands of yen) – – Profit attributable to common investment units (Thousands of yen) ¥6,059,512 ¥5,754,382 Average number of investment units for the period (Units) 1,440,000 1,440,000 Notes on Significant Subsequent Events (unaudited) Not applicable.
Page 39
- 39 - Omission of Disclosure Disclosure is omitted for items for notes on securities, share of profit or loss of entities accounted for using the equity method, lease transactions and retirement benefits, since necessity for their disclosure in the financial results report is not deemed to be significant.
Page 40
- 40 - (9) Changes in Total Number of Investment Units Issued A summary of capital increase, etc. over the most recent five calendar years until the end of the reporting period is shown as below. Date Event Total number of investment units issued (Units) Total unitholders’ capital (Millions of yen) Remarks Change Balance Change Balance October 27, 2021 Capital increase through public offering 82,800 1,435,800 13,623 194,063 (Note 1) November 22, 2021 Capital increase through third-party allotment 4,200 1,440,000 691 194,754 (Note 2) (Note 1) New investment units were issued through public offering with an issue price per unit of ¥169,942 (issue value: ¥164,538) in order to raise funds for the acquisition of new properties, etc. (Note 2) New investment units were issued through a private placement allocated to Mizuho Securities Co., Ltd. with an issue value per unit of ¥164,538. (Note 3) Changes in total unitholders’ capital in connection with the implementation of distributions in excess of earnings related to allowance for temporary difference adjustments have not been taken into consideration.
Page 41
- 41 - 3. Reference Information (1) Status of Investment Type of assets Category Region (Note 1) Previous fiscal period (As of February 28, 2026) Reporting period (As of August 31, 2026) Total amount held (Millions of yen) (Note 2) Percentage to total assets (%) (Note 3) Total amount held (Millions of yen) (Note 2) Percentage to total assets (%) (Note 3) Real estate Office and Retail Properties Six central wards of Tokyo 3,576 0.9 3,572 0.9 Other wards of Tokyo – – – – Other – – – – Total 3,576 0.9 3,572 0.9 Hotels Six central wards of Tokyo – – – – Other wards of Tokyo – – – – Other – – – – Total – – – – Assets for Other Uses Six central wards of Tokyo – – – – Other wards of Tokyo – – – – Other – – – – Total – – – – Total real estate 3,576 0.9 3,572 0.9 Real estate in trust Office and Retail Properties Six central wards of Tokyo 182,373 43.5 184,651 44.1 Other wards of Tokyo 53,408 12.7 56,400 13.5 Other 16,674 4.0 16,650 4.0 Total 252,456 60.2 257,702 61.6 Hotels Six central wards of Tokyo 27,382 6.5 27,291 6.5 Other wards of Tokyo 37,830 9.0 37,770 9.0 Other 27,038 6.4 27,065 6.5 Total 92,252 22.0 92,128 22.0 Assets for Other Uses Six central wards of Tokyo 6,045 1.4 6,018 1.4 Other wards of Tokyo 36,992 8.8 35,534 8.5 Other 10,369 2.5 4,860 1.2 Total 53,408 12.7 46,413 11.1 Total real estate in trust 398,116 94.9 396,243 94.7 Total real estate and real estate in trust 401,693 95.7 399,816 95.5 Deposits and other assets 17,905 4.3 18,699 4.5 Total assets 419,598 100.0 418,515 100.0 Amount (Millions of yen) Percentage to total assets (%) (Note 3) Amount (Millions of yen) Percentage to total assets (%) (Note 3) Total liabilities 217,838 51.9 216,833 51.8 Total net assets 201,759 48.1 201,682 48.2 (Note 1) Six central wards of Tokyo refer to Chiyoda ward (Chiyoda-ku), Chuo ward (Chuo-ku), Minato ward (Minato-ku), Shinjuku ward (Shinjuku-ku), Shibuya ward (Shibuya-ku) and Shinagawa ward (Shinagawa-ku). (Note 2) Total amount held represents the balance sheet carrying amount (for real estate and real estate in trust, book value less depreciation expenses), rounded down to the nearest million yen. (Note 3) Percentage to total assets represents the ratios of each asset held, total liabilities and total net assets to total assets, rounded to one decimal place.
Page 42
- 42 - (2) Investment Assets i) Overview of investment assets (As of the end of the reporting period) Category Property name Date of construction (Note 1) Total contracted rent (Millions of yen) (Note 2) Leasehold/ guarantee deposits (Millions of yen) (Note 3) Total leased area (m2) (Note 4) Total leasable area (m2) (Note 5) Occupancy rate (%) (Note 6) Office and Retail Properties Office properties Toranomon First Garden (Note 8) August 2010 561 385 5,689.97 5,689.97 100.0 Rapiros Roppongi (Note 8) August 1997 636 515 6,730.52 6,730.52 100.0 Hulic Takadanobaba Building November 1993 318 178 5,369.71 5,369.71 100.0 Hulic Kanda Building September 2008 285 238 3,728.36 3,728.36 100.0 Hulic Kandabashi Building June 2001 170 131 2,566.95 2,566.95 100.0 Hulic Kakigaracho Building March 1993 199 131 2,858.48 2,858.48 100.0 Ochanomizu Sola City (Note 7) February 2013 (Note 10) (Note 10) 13,923.42 13,923.42 100.0 Hulic Higashi Ueno 1 Chome Building July 1988 180 146 3,137.09 3,137.09 100.0 Tokyo Nishi Ikebukuro Building (Note 8) October 1990 112 190 1,429.74 1,429.74 100.0 Hulic Toranomon Building May 2015 891 671 8,574.65 8,574.65 100.0 Hulic Shibuya 1 Chome Building August 1993 257 204 2,817.65 2,817.65 100.0 Hulic Jimbocho Building September 1989 84 60 1,561.38 1,561.38 100.0 Hulic Gotanda Yamate-dori Building March 1996 175 131 2,798.35 3,276.05 85.4 Bancho House August 1989 (Note 10) 132 1,981.83 1,981.83 100.0 Ebisu Minami Building September 1992 (Note 10) (Note 10) 1,629.09 1,629.09 100.0 Hulic Iidabashi Building February 1991 84 73 1,431.94 1,431.94 100.0 Hulic Asakusabashi Building (Note 7) February 2013 355 223 5,280.72 5,280.72 100.0 Hulic Ebisu Building February 1992 76 77 1,059.22 1,059.22 100.0 Hulic Ryogoku Building (Note 7) January 2010 269 198 4,069.12 4,569.34 89.1 Hulic Asakusabashi Edo-dori (Note 7) September 2015 278 134 3,956.73 3,956.73 100.0 Hulic Nakano Building (Note 7) October 1994 178 135 2,616.83 2,616.83 100.0 Hulic Ueno Building (Note 7) (Bank branch building) April 1986 (Parking lot) March 1986 217 191 3,031.85 3,031.85 100.0 Hulic Kojimachi Building (Note 7) October 2010 528 453 5,380.17 5,380.17 100.0 Kichijoji Fuji Building (Note 7) October 1980 (Note 10) (Note 10) 3,958.37 3,958.37 100.0 Hulic Hachioji Building (Note 7) (Bank branch building) February 2009 (Parking lot) November 2009 288 194 3,768.00 3,768.00 100.0 Hulic Kobe Building (Note 7) October 1990 401 454 5,126.08 5,126.08 100.0 Hulic Gotanda Building (Note 7) May 1986 331 280 4,246.19 4,246.19 100.0 Hulic Oji Building (Note 7) (Bank branch building) January 2020 (Parking lot) May 1972 265 165 3,695.59 3,695.59 100.0 Hulic Kobunacho Building (Note 7) May 1994 599 776 7,781.30 7,781.30 100.0 Hulic Komagome Building (Note 7) January 2012 (Note 10) (Note 10) 1,310.40 1,310.40 100.0 Kameido Fuji Building (Note 7) August 1979 (Note 10) (Note 10) 2,376.29 2,376.29 100.0 Hulic Shinjuku Building (Note 7) October 2014 876 739 2,723.84 2,723.84 100.0 Hulic Ginza Building (Note 7) August 2025 529 529 2,279.32 2,279.32 100.0 Edogawabashi Fuji Building (Note 7) October 1983 (Note 10) (Note 10) 2,635.95 2,635.95 100.0 Subtotal – 11,717 10,502 131,525.10 132,503.02 99.3
Page 43
- 43 - Category Property name Date of construction (Note 1) Total contracted rent (Millions of yen) (Note 2) Leasehold/ guarantee deposits (Millions of yen) (Note 3) Total leased area (m2) (Note 4) Total leasable area (m2) (Note 5) Occupancy rate (%) (Note 6) Office and Retail Properties Retail properties Oimachi Redevelopment Building (#2) September 1989 624 656 14,485.66 14,485.66 100.0 Oimachi Redevelopment Building (#1) (Note 8) September 1989 438 529 10,612.67 10,612.67 100.0 Hulic Jingu-Mae Building September 2000 165 94 1,660.60 1,660.60 100.0 Hulic Todoroki Building August 1990 95 69 1,676.02 1,676.02 100.0 HULIC &New SHIBUYA (Note 7) April 2017 128 114 898.62 898.62 100.0 HULIC &New SHINBASHI April 2017 154 132 1,725.35 1,725.35 100.0 Hulic Shimura-sakaue (Retail property block) November 2015 (Private nursing home block) February 2016 438 307 11,528.34 11,528.34 100.0 Hulic Mejiro October 2018 279 187 3,805.72 3,805.72 100.0 Hulic Ginza World Town Building (Note 7) March 1982 271 107 645.78 645.78 100.0 Subtotal – 2,592 2,195 47,038.76 47,038.76 100.0 Office and Retail Properties Total – 14,310 12,697 178,563.86 179,541.78 99.5 Hotels Sotetsu Fresa Inn Ginza 7 Chome (Note 9) August 2016 480 480 6,984.32 6,984.32 100.0 Sotetsu Fresa Inn Tokyo-Roppongi (Note 9) August 2017 432 108 4,816.89 4,816.89 100.0 Hulic Tsukiji 3 Chome Building November 2018 (Note 10) (Note 10) 4,740.31 4,740.31 100.0 Hulic Kaminarimon Building July 2012 (Note 10) (Note 10) 6,493.82 6,493.82 100.0 Grand Nikko Tokyo Bay Maihama (Note 7) March 1990 (Note 10) (Note 10) 33,744.31 33,744.31 100.0 Asakusa View Hotel July 1985 (Note 10) (Note 10) 49,360.52 49,360.52 100.0 Subtotal – 3,196 1,965 106,140.17 106,140.17 100.0 Assets for Other Uses Private nursing homes Aria Matsubara September 2005 (Note 10) (Note 10) 5,454.48 5,454.48 100.0 Trust Garden Yoganomori September 2005 (Note 10) (Note 10) 5,977.75 5,977.75 100.0 Trust Garden Sakurashinmachi August 2005 (Note 10) (Note 10) 3,700.26 3,700.26 100.0 Trust Garden Suginami Miyamae April 2005 (Note 10) (Note 10) 3,975.99 3,975.99 100.0 HIMEDIC Residence The Garden Tokiwamatsu January 2016 (Note 10) (Note 10) 2,893.82 2,893.82 100.0 SOMPO Care La vie Re Kita- Kamakura March 2009 (Note 10) (Note 10) 4,912.57 4,912.57 100.0 Charm Suite Shinjukutoyama June 2015 (Note 10) (Note 10) 4,065.62 4,065.62 100.0 Charm Suite Shakujiikoen June 2014 (Note 10) (Note 10) 4,241.68 4,241.68 100.0 Hulic Chofu March 2017 173 144 4,357.58 4,357.58 100.0 Aristage Kyodo (Note 7) May 2012 (Note 10) (Note 10) 13,279.12 13,279.12 100.0 Granda Gakugei Daigaku April 2013 (Note 10) (Note 10) 2,803.79 2,803.79 100.0 Charm Premier Den-en-Chofu February 2018 (Note 10) (Note 10) 1,983.71 1,983.71 100.0 Sonare Shakujii October 2018 (Note 10) (Note 10) 2,295.79 2,295.79 100.0 Hospitalment Hongo March 2019 (Note 10) (Note 10) 2,116.93 2,116.93 100.0 Assets for Other Uses Total – 2,551 1,991 62,059.09 62,059.09 100.0 Portfolio Total – 20,057 16,654 346,763.12 347,741.04 99.7 (Note 1) Date of construction represents the year and month of construction as described in the property registry. (Note 2) Total contracted rent is calculated by multiplying the monthly contracted rent (limited to rent for room, including common service fee and excluding consumption taxes and usage fee for warehouses, signboards and parking lots, regardless of circumstances such as free rent arrangements in effect as of the end of the reporting period) indicated in the relevant lease agreements for buildings of each asset held in effect as of the end of the reporting period by 12 (with respect to assets held subject to multiple lease agreements, the aggregate monthly rent for all lease agreements) and rounding to the nearest million yen. When a master lease agreement has been executed for the asset held, the amounts provided are the amount for the portion corresponding to the pass-through master lease under which rents are directly received from end-tenants in principle (hereinafter referred to as the “Pass-through Master Lease Agreement”), calculated on an annual basis by multiplying the monthly rent as indicated in each sublease agreement entered into with end-tenants corresponding to that portion by 12; and the amount for the portion corresponding to the fixed-type master lease under which a certain amount of rent is received regardless of fluctuations in rents for end-tenants (hereinafter referred to as the “Fixed-type Master Lease Agreement”), calculated on an annual basis by multiplying the monthly rent as indicated by the Fixed-type Master Lease Agreement corresponding to that portion by 12. (Note 3) Leasehold/guarantee deposits indicates the aggregate of the recognized book values for the leasehold and/or guarantee deposit(s) of each asset held as of the end of the reporting period, rounded to the nearest million yen. (Note 4) Total leased area is equivalent to total floor area or similar measurement of leased space set out in the relevant lease agreements or similar contracts for buildings of each asset held as of the end of the reporting period. For the portion for which there is a Pass-through Master Lease Agreement, the actual total area leased under each sublease agreement
Page 44
- 44 - entered into with end-tenants corresponding to that portion is provided; and for the portion for which there is a Fixed- type Master Lease Agreement, the total area corresponding to that portion is provided. (Note 5) Total leasable area is equivalent to the gross leasable area, based on the lease agreements or floor plans of buildings of each asset held as of the end of the reporting period. (Note 6) Occupancy rate shows the proportion of the total leased area to the total leasable area of each asset held as of the end of the reporting period, rounded to the nearest tenth. Subtotals, totals and total of the portfolio show the proportion of the total leased area to the total of leasable area for the assets held, rounded to the nearest tenth. (Note 7) The figures for total contracted rent, leasehold/guarantee deposits, total leased area, and total leasable area are equivalent to the quasi co-ownership interest of property held by the Investment Corporation. (Note 8) The figures for total contracted rent, leasehold/guarantee deposits, total leased area, total leasable area, and occupancy rate are equivalent to the Investment Corporation’s partial ownership in the building (including some of co-ownership portion; for the co-ownership portion, the figures calculated on a pro-rata basis in accordance with the co-ownership interests owned by the Investment Corporation are listed). (Note 9) For Sotetsu Fresa Inn Ginza 7 Chome and Sotetsu Fresa Inn Tokyo-Roppongi, total contracted rent is made up of a fixed rent and a proportional rent that arises when annual guest room sales exceed a certain amount. Total contracted rent shows amounts calculated with monthly fixed rent specified in lease agreements multiplied by 12, with the result rounded to the nearest million yen. (Note 10) The Investment Corporation has not obtained permission from the end-tenant or other relevant party of these properties to disclose the relevant information. (Note 11) In the above table, total contracted rent, leasehold/guarantee deposits, total leased area and occupancy rate may include data of end-tenant lease agreements for which we have received a request for cancellation or termination and end-tenant lease agreements for which rent payment was delinquent as of the end of the reporting period, if the lease agreement was valid as of the end of the reporting period.
Page 45
- 45 - ii) Overview of appraisal report (As of the end of the reporting period) Category Property name Appraisal agency (Note 1) Acquisition price (Millions of yen) (Note 2) Book value at end of period (Millions of yen) (Note 3) Appraisal value (Millions of yen) (Note 4) Integrated price by using cost method (Millions of yen) (Note 5) Return price (Millions of yen) Price based on direct capitali- zation method Capitaliza- tion rate (%) Price based on DCF method Discount rate (%) Terminal capitalization rate (%) Office and Retail Properties Office properties Toranomon First Garden C 8,623 7,730 12,300 17,500 12,400 3.0 12,300 2.7 3.1 Rapiros Roppongi N 6,210 6,689 10,300 14,600 10,400 3.2 10,100 2.9 3.4 Hulic Takadanobaba Building D 3,900 3,611 5,550 5,750 5,620 3.7 5,520 3.5 3.9 Hulic Kanda Building T 3,780 3,558 3,870 4,070 4,010 4.0 3,810 3.8 3.8 Hulic Kandabashi Building D 2,500 2,386 2,970 3,300 2,970 3.4 2,970 3.2 3.5 Hulic Kakigaracho Building T 2,210 2,242 2,900 3,420 2,860 3.9 2,910 4.1 4.1 Ochanomizu Sola City N 38,149 35,213 46,655 40,579 47,089 3.0 46,004 2.8 3.1 Hulic Higashi Ueno 1 Chome Building N 2,678 2,733 3,210 3,470 3,230 3.6 3,180 3.4 3.7 Tokyo Nishi Ikebukuro Building N 1,580 1,540 2,110 1,790 2,140 3.8 2,070 3.6 4.0 Hulic Toranomon Building N 18,310 17,367 21,500 26,200 21,800 2.7 21,200 2.5 2.8 Hulic Shibuya 1 Chome Building T 5,100 5,025 5,930 5,810 6,080 3.2 5,870 3.4 3.4 Hulic Jimbocho Building N 1,460 1,523 1,840 1,790 1,860 3.6 1,820 3.4 3.7 Hulic Gotanda Yamate-dori Building D 3,450 3,572 3,030 4,360 3,310 3.6 2,910 3.3 3.7 Bancho House D 2,750 2,780 3,560 3,920 3,550 3.5 3,570 3.3 3.7 Ebisu Minami Building (Note 6) T 2,420 2,408 2,640 2,590 2,740 3.6 2,590 3.7 3.7 Hulic Iidabashi Building T 1,450 1,553 1,440 1,730 1,450 3.7 1,440 3.9 3.9 Hulic Asakusabashi Building (Note 7) T 4,750 3,985 4,780 4,600 4,630 4.8 4,840 4.8 – Hulic Ebisu Building C 1,275 1,284 1,620 1,500 1,680 3.5 1,620 3.3 3.6 Hulic Ryogoku Building N 5,610 5,275 6,219 5,571 6,273 3.6 6,156 3.4 3.7 Hulic Asakusabashi Edo-dori N 5,420 5,175 5,895 5,715 5,931 3.5 5,859 3.3 3.6 Hulic Nakano Building N 3,200 3,191 3,492 3,438 3,519 3.6 3,465 3.4 3.7 Hulic Ueno Building N 4,100 4,095 4,104 4,293 4,140 3.4 4,068 3.2 3.5 Hulic Kojimachi Building D 12,600 12,648 12,900 17,000 13,100 2.9 12,800 2.7 3.0 Kichijoji Fuji Building T 5,150 5,127 6,510 6,660 6,620 4.0 6,460 4.2 4.2 Hulic Hachioji Building N 4,900 4,699 5,265 4,833 5,301 4.6 5,229 4.4 4.7 Hulic Kobe Building D 6,710 6,824 6,950 8,740 7,010 4.0 6,930 3.8 4.2 Hulic Gotanda Building T 6,162 6,217 6,560 7,780 6,690 3.9 6,510 4.1 4.1 Hulic Oji Building (Note 8) T 5,300 5,195 5,560 6,800 5,660 3.9 5,520 4.1 4.1 Hulic Kobunacho Building C 10,970 11,331 11,900 10,200 12,200 3.4 11,900 3.2 3.5 Hulic Komagome Building N 1,930 1,924 2,007 2,025 2,025 3.6 1,980 3.4 3.7 Kameido Fuji Building N 3,000 3,015 3,357 3,573 3,384 3.8 3,321 3.6 3.9 Hulic Shinjuku Building N 26,350 22,443 28,249 28,249 28,782 2.4 27,716 2.2 2.5 Hulic Ginza Building N 14,700 11,867 17,199 17,542 17,542 2.2 16,856 2.0 2.3 Edogawabashi Fuji Building D 3,084 3,105 3,180 3,830 3,240 3.6 3,150 3.4 3.8 Subtotal – 229,781 217,346 265,552 283,228 269,236 – 262,644 – –
Page 46
- 46 - Category Property name Appraisal agency (Note 1) Acquisition price (Millions of yen) (Note 2) Book value at end of period (Millions of yen) (Note 3) Appraisal value (Millions of yen) (Note 4) Integrated price by using cost method (Millions of yen) (Note 5) Return price (Millions of yen) Price based on direct capitali- zation method Capitaliza- tion rate (%) Price based on DCF method Discount rate (%) Terminal capitalization rate (%) Office and Retail Properties Retail properties Oimachi Redevelopment Building (#2) T 9,456 9,394 12,200 13,000 12,400 3.9 12,100 4.1 4.1 Oimachi Redevelopment Building (#1) T 6,166 6,312 7,300 7,860 7,450 4.1 7,240 4.3 4.3 Hulic Jingu-Mae Building (Note 9) T 2,660 2,686 3,630 4,340 3,740 3.3 3,580 3.5 3.5 Hulic Todoroki Building T 1,200 1,175 1,460 1,910 1,450 4.3 1,460 4.5 4.5 HULIC &New SHIBUYA N 3,150 3,009 3,645 3,415 3,695 2.8 3,590 2.6 2.9 HULIC &New SHINBASHI N 3,100 2,891 3,490 3,450 3,510 3.5 3,460 3.3 3.6 Hulic Shimura- sakaue N 7,556 6,908 7,650 8,360 7,740 4.3 7,560 4.1 4.5 Hulic Mejiro N 5,670 5,466 6,690 6,570 6,760 3.4 6,620 3.2 3.5 Hulic Ginza World Town Building N 8,163 6,084 8,880 8,780 8,860 2.5 8,900 2.2 2.5 Subtotal – 47,121 43,928 54,945 57,685 55,605 – 54,510 – – Total – 276,902 261,274 320,497 340,913 324,841 – 317,154 – – Hotels Sotetsu Fresa Inn Ginza 7 Chome N 11,520 11,113 16,000 14,900 16,100 3.4 15,800 3.2 3.5 Sotetsu Fresa Inn Tokyo-Roppongi N 9,950 9,543 11,100 11,100 11,200 3.6 11,000 3.4 3.7 Hulic Tsukiji 3 Chome Building N 6,972 6,635 7,250 7,130 7,320 3.5 7,180 3.3 3.6 Hulic Kaminarimon Building N 5,900 5,832 6,150 7,380 6,200 3.3 6,100 3.1 3.4 Grand Nikko Tokyo Bay Maihama N 27,000 27,065 30,650 29,150 30,950 3.7 30,350 3.5 3.8 Asakusa View Hotel N 38,000 31,938 42,100 42,700 42,800 3.6 41,400 3.4 3.7 Total – 99,342 92,128 113,250 112,360 114,570 – 111,830 – – Assets for Other Uses Private nursing homes Aria Matsubara N 3,244 3,072 4,540 4,930 4,560 4.2 4,520 3.9 4.3 Trust Garden Yoganomori N 5,390 5,118 7,140 7,170 7,160 4.5 7,110 4.2 4.6 Trust Garden Sakurashin-machi N 2,850 2,721 3,820 3,690 3,830 4.4 3,800 4.1 4.5 Trust Garden Suginami Miyamae N 2,760 2,613 3,690 3,680 3,700 4.4 3,680 4.1 4.5 HIMEDIC Residence The Garden Tokiwamatsu N 3,030 2,781 3,560 3,490 3,590 3.9 3,530 3.7 4.0 SOMPO Care La vie Re Kita- Kamakura N 1,780 1,620 1,900 1,290 1,920 5.0 1,880 4.8 5.2 Charm Suite Shinjuku-toyama N 3,323 3,236 3,700 3,790 3,730 3.8 3,670 3.6 3.9 Charm Suite Shakujiikoen N 3,200 3,046 3,430 3,540 3,450 4.1 3,400 3.9 4.2 Hulic Chofu N 3,340 3,240 3,620 3,740 3,640 4.0 3,590 3.8 4.1 Aristage Kyodo N 9,000 8,874 9,975 10,830 10,070 3.7 9,880 3.5 3.8 Granda Gakugei Daigaku N 2,200 2,187 2,410 2,450 2,430 3.6 2,390 3.4 3.7 Charm Premier Den-en-Chofu N 2,550 2,553 2,710 2,660 2,730 3.7 2,680 3.5 3.8 Sonare Shakujii N 2,400 2,400 2,570 2,570 2,590 3.8 2,540 3.6 3.9 Hospitalment Hongo N 2,884 2,945 3,050 3,050 3,080 3.7 3,020 3.5 3.8 Total – 47,951 46,413 56,115 56,880 56,480 – 55,690 – – Total – 424,195 399,816 489,862 510,153 495,891 – 484,674 – – (Note 1) The letters in the appraisal agency column indicate appraisers as follows: D: Daiwa Real Estate Appraisal Co., Ltd. N: Japan Real Estate Institute C: CBRE K.K. T: The Tanizawa Sōgō Appraisal Co., Ltd. (Note 2) Acquisition price represents trading value stipulated in each purchase and sale agreement in relation to each asset held, rounded to the nearest million yen. The trading value does not include consumption tax, local consumption tax and expenses incurred on acquisition. (Note 3) Book value at end of period represents book value for each property less depreciation expenses as of the end of the reporting period, rounded down to the nearest million yen. (Note 4) Appraisal value represents the appraisal value as of the valuation date of the end of the reporting period.
Page 47
- 47 - (Note 5) “Integrated price by using cost method” is presented by rounding the price corresponding to the quasi co-ownership of property held by the Investment Corporation to the nearest million yen. (Note 6) Discount rate for Ebisu Minami Building was 3.6% for the 1st fiscal year to the 2nd fiscal year, 3.7% for the 3rd fiscal year and thereafter. The table shows the 3rd fiscal year and thereafter (3.7%). (Note 7) For Hulic Asakusabashi Building, since the calculation method based on the capitalization method over a definite term (modified Inwood method) has been employed as a direct capitalization method based on the consideration that the land lease right acquired is a fixed-term land sublease right for business use, the discount rate in the capitalization method over a definite term (modified Inwood method) is shown in the Capitalization rate. In addition, because terminal capitalization rate is not applied in the DCF method, it has not been provided. (Note 8) Discount rate for Hulic Oji Building was 4.0% for the 1st fiscal year to the 8th fiscal year, 4.1% for the 9th fiscal year and thereafter. The table shows the 9th fiscal year and thereafter (4.1%). (Note 9) Discount rate for Hulic Jingu-Mae Building was 3.4% for the 1st fiscal year, 3.5% for the 2nd fiscal year and thereafter. The table shows the 2nd fiscal year and thereafter (3.5%).
Page 48
- 48 - iii) Capital expenditures for assets under management (A) Schedule of capital expenditures For each asset held by the Investment Corporation as of the end of the reporting period, the main capital expenditures for renovation work, etc. scheduled as of August 31, 2026 (the end of the 25th fiscal period) are as below. Estimated capital expenditure for work mentioned below includes that which is charged to expenses. Property name Location Purpose Scheduled period Estimated capital expenditure for work (Millions of yen) Total amount Payment during the period Total amount paid (inclu- ding the reporting period) Hulic Gotanda Yamate-dori Building Shinagawa-ku, Tokyo Building restoration work From October 2026 to April 2027 573 – – Oimachi Redevelopment Building (#2) Shinagawa-ku, Tokyo Renovation work for air-conditioning equipment (1st basement floor and 1st floor) From November 2026 to March 2027 131 – – Grand Nikko Tokyo Bay Maihama Urayasu-shi, Chiba Renewal work for boiler From April 2026 to August 2028 167 77 77 Ochanomizu Sola City Chiyoda-ku, Tokyo Renewal work for lighting (17th to 19th floors) From March 2026 to October 2026 116 – – Rapiros Roppongi Minato-ku, Tokyo Renewal work for restrooms From July 2026 to March 2027 99 – – Grand Nikko Tokyo Bay Maihama Urayasu-shi, Chiba Renovation work for external wall From March 2026 to January 2027 70 – – Ochanomizu Sola City Chiyoda-ku, Tokyo Renewal work for lighting (1st basement floor and 14th floor) From March 2026 to December 2026 58 – – Aristage Kyodo Setagaya-ku, Tokyo Renovation work for air-conditioning equipment From November 2026 to January 2027 55 – – Ochanomizu Sola City Chiyoda-ku, Tokyo Renewal work for lighting (4th and 5th floors) From March 2026 to September 2026 54 – –
Page 49
- 49 - Property name Location Purpose Scheduled period Estimated capital expenditure for work (Millions of yen) Total amount Payment during the period Total amount paid (inclu- ding the reporting period) Asakusa View Hotel Taito-ku, Tokyo Guestroom bidet toilet seat replacement From November 2026 to August 2027 54 – – Kameido Fuji Building Koto-ku, Tokyo Renovation work for rooftop waterproofing From December 2026 to February 2027 32 – – Ebisu Minami Building Shibuya-ku, Tokyo Renovation work for substation equipment From November 2026 to March 2027 25 – –
Page 50
- 50 - (B) Capital expenditures during the period An overview of the construction work corresponding to capital expenditures during the reporting period is as below. Capital expenditures during the reporting period were ¥1,424,195 thousand and repair expenses were ¥188,986 thousand. In aggregate, construction work in the amount of ¥1,613,182 thousand was carried out during the period. Property name Location Purpose Period Capital expenditure for work (Millions of yen) Hulic Kobunacho Building Chuo-ku, Tokyo Renewal work for air- conditioning heat source equipment From September 2025 to April 2026 331 Hulic Kojimachi Building Chiyoda-ku, Tokyo Maintenance work for rental facilities From March 2026 to May 2026 226 Hulic Kanda Building Chiyoda-ku, Tokyo Renovation work for air- conditioning equipment From December 2025 to April 2026 70 Hulic Kakigaracho Building Chuo-ku, Tokyo Maintenance work for rental facilities From March 2026 to June 2026 70 Rapiros Roppongi Minato-ku, Tokyo Renewal work for restrooms From October 2025 to April 2026 57 Hulic Asakusabashi Building Taito-ku, Tokyo Work for LED performance lighting From July 2026 to August 2026 57 Hulic Higashi Ueno 1 Chome Building Taito-ku, Tokyo Renovation work for external wall and rooftop waterproofing From December 2025 to March 2026 56 Hulic Kakigaracho Building Chuo-ku, Tokyo Work for subdivision of rental room area From January 2026 to April 2026 22 Other 530 Total 1,424 (3) Major Investment Assets Among the assets held by the Investment Corporation, as of the end of the reporting period, there are no real estate properties for which the total contracted rent makes up 10% or more of the total rental income of the entire portfolio.
Page 51
- 51 - (4) Overview of Major Tenants Tenants for which leased area accounted for 10% or more of the total leased area as of the end of the reporting period are shown as below. Tenant Business type Property name Leased area (m2) (Note 1) Total contracted rent (Millions of yen) (Note 2) Leasehold/ guarantee deposits (Millions of yen) (Note 3) Expiration date (Note 4) Renewal of agreement, etc. (Note 5) Hulic Co., Ltd. Real estate leasing business Toranomon First Garden (Note 7) 5,689.97 561 385 February 6, 2027 Automatically renewed for 2 years unless notified in writing at least 6 months before the expiry of the agreement Rapiros Roppongi (Note 7) 6,730.52 636 515 Hulic Takadanobaba Building 5,369.71 318 178 Hulic Kanda Building 3,728.36 285 238 Hulic Kandabashi Building 2,566.95 170 131 Hulic Kakigaracho Building 2,858.48 199 131 Hulic Higashi Ueno 1 Chome Building 3,137.09 180 146 October 15, 2027 Tokyo Nishi Ikebukuro Building (Note 7) 1,429.74 112 190 March 30, 2028 Hulic Toranomon Building 8,574.65 891 671 December 24, 2026 Hulic Shibuya 1 Chome Building 2,817.65 257 204 March 30, 2028 Hulic Jimbocho Building 1,561.38 84 60 April 27, 2028 Hulic Gotanda Yamate-dori Building 2,798.35 175 131 September 30, 2027 Bancho House 1,981.83 (Note 9) 132 October 31, 2027 Ebisu Minami Building 1,629.09 (Note 9) (Note 9) December 26, 2027 Hulic Iidabashi Building 1,431.94 84 73 June 27, 2028 Hulic Asakusabashi Building (Note 6) 5,280.72 355 223 December 31, 2064 Terminated due to the expiry of the agreement Hulic Ebisu Building 1,059.22 76 77 December 19, 2026 Automatically renewed for 2 years unless notified in writing at least 6 months before the expiry of the agreement Hulic Ryogoku Building (Note 6) 4,069.12 269 198 March 25, 2027 Hulic Asakusabashi Edo-dori (Note 6) 3,956.73 278 134 March 25, 2027 Hulic Nakano Building (Note 6) 2,616.83 178 135 October 15, 2027 Hulic Ueno Building (Note 6) 3,031.85 217 191 March 30, 2028 Hulic Kojimachi Building (Note 6) 5,380.17 528 453 October 31, 2026 Kichijoji Fuji Building (Note 6) 3,958.37 (Note 9) (Note 9) October 31, 2026 Hulic Hachioji Building (Note 6) 3,768.00 288 194 October 15, 2027 Hulic Kobe Building (Note 6) 5,126.08 401 454 October 31, 2026 Hulic Gotanda Building (Note 6) 4,246.19 331 280 October 27, 2027 Hulic Oji Building (Note 6) 3,695.59 265 165 February 29, 2028 Hulic Kobunacho Building (Note 6) 7,781.30 599 776 July 2, 2028 Hulic Komagome Building (Note 6) 1,310.40 (Note 9) (Note 9) November 30, 2026 Kameido Fuji Building (Note 6) 2,376.29 (Note 9) (Note 9) June 26, 2027
Page 52
- 52 - Tenant Business type Property name Leased area (m2) (Note 1) Total contracted rent (Millions of yen) (Note 2) Leasehold/ guarantee deposits (Millions of yen) (Note 3) Expiration date (Note 4) Renewal of agreement, etc. (Note 5) Hulic Co., Ltd. Real estate leasing business Hulic Shinjuku Building (Note 6) 2,723.84 876 739 December 22, 2027 Automatically renewed for 5 years unless notified in writing at least 6 months before the expiry of the agreement Hulic Ginza Building (Note 6) 2,279.32 529 529 June 29, 2029 Automatically renewed for 1 year unless notified in writing at least 6 months before the expiry of the agreement Edogawabashi Fuji Building (Note 6) 2,635.95 (Note 9) (Note 9) November 30, 2026 Automatically renewed for 2 years unless notified in writing at least 6 months before the expiry of the agreement Oimachi Redevelopment Building (#2) 14,485.66 624 656 February 6, 2027 Oimachi Redevelopment Building (#1) (Note 7) 10,612.67 438 529 September 30, 2027 Hulic Jingu-Mae Building 1,660.60 165 94 February 6, 2027 Hulic Todoroki Building 1,676.02 95 69 December 26, 2027 HULIC &New SHIBUYA (Note 6) 898.62 128 114 June 29, 2028 HULIC &New SHINBASHI 1,725.35 154 132 October 31, 2026 Hulic Shimura-sakaue 11,528.34 438 307 June 28, 2027 Hulic Mejiro 3,805.72 279 187 March 25, 2027 Hulic Ginza World Town Building (Note 6) 645.78 271 107 June 29, 2029 Automatically renewed for 1 year unless notified in writing at least 6 months before the expiry of the agreement Sotetsu Fresa Inn Ginza 7 Chome (Note 8) 6,984.32 480 480 October 31, 2026 Automatically renewed for 2 years unless notified in writing at least 6 months before the expiry of the agreement Sotetsu Fresa Inn Tokyo- Roppongi (Note 8) 4,816.89 432 108 November 30, 2026 Hulic Tsukiji 3 Chome Building 4,740.31 (Note 9) (Note 9) March 25, 2027 Hulic Kaminarimon Building 6,493.82 (Note 9) (Note 9) December 21, 2026 Asakusa View Hotel 49,360.52 (Note 9) (Note 9) June 30, 2031 Aria Matsubara 5,454.48 (Note 9) (Note 9) February 6, 2027 Trust Garden Yoganomori 5,977.75 (Note 9) (Note 9) Trust Garden Sakurashinmachi 3,700.26 (Note 9) (Note 9) Trust Garden Suginami Miyamae 3,975.99 (Note 9) (Note 9) HIMEDIC Residence The Garden Tokiwamatsu 2,893.82 (Note 9) (Note 9) August 31, 2027 SOMPO Care La vie Re Kita-Kamakura 4,912.57 (Note 9) (Note 9) June 29, 2028 Charm Suite Shinjukutoyama 4,065.62 (Note 9) (Note 9) September 26, 2028 Charm Suite Shakujiikoen 4,241.68 (Note 9) (Note 9) September 11, 2028 Hulic Chofu 4,357.58 173 144 March 30, 2028 Aristage Kyodo (Note 6) 13,279.12 (Note 9) (Note 9) October 31, 2026 Granda Gakugei Daigaku 2,803.79 (Note 9) (Note 9) March 30, 2027 Charm Premier Den-en- Chofu 1,983.71 (Note 9) (Note 9) March 29, 2028 Sonare Shakujii 2,295.79 (Note 9) (Note 9) March 29, 2028 Hospitalment Hongo 2,116.93 (Note 9) (Note 9) March 29, 2028 Business Total 299,095.39 17,324 14,257 – –
Page 53
- 53 - (Note 1) Leased area is equivalent to total floor area or similar measurement of leased space set out in the relevant lease agreements or similar contracts for buildings of each property as of the end of the reporting period. For the portion for which there is a Pass-through Master Lease Agreement, the actual total area leased under each sublease agreement entered into with end-tenants corresponding to that portion is provided. For the portion for which there is a Fixed-type Master Lease Agreement, the total area corresponding to that portion is provided. (Note 2) Total contracted rent is calculated by multiplying the monthly contracted rent (limited to rent for room, including common service fee and excluding consumption taxes and usage fee for warehouses, signboards and parking lots, regardless of free rent arrangements in effect as of the end of the reporting period) indicated in the relevant lease agreements for buildings of each property in effect as of the end of the reporting period by 12 (with respect to assets held subject to multiple lease agreements, the aggregate monthly rent for all lease agreements) and rounding to the nearest million yen. The amounts provided are the amount for the portion of property corresponding to a Pass-through Master Lease Agreement for which the tenant is a sublessor as a master lease company, in accordance with the lease agreement with the end-tenant in effect as of the end of the reporting period, calculated on an annual basis by multiplying the monthly rent as indicated in each sublease agreement entered into with end-tenants corresponding to that portion by 12; and the amount for the portion of property corresponding to a Fixed-type Master Lease Agreement, calculated on an annual basis by multiplying the monthly rent as indicated in the master lease agreement corresponding to that portion. (Note 3) Leasehold/guarantee deposits indicates the aggregate of the recognized book values for the leasehold and/or guarantee deposit(s) of each asset held as of the end of the reporting period, rounded to the nearest million yen. (Note 4) Expiration date is the expiration date provided in the lease agreements for each asset in effect as of the filing date of this report where the tenant is the lessee, including where the tenant is a sublessor and master lease company under a sublease agreement. (If the lease agreement has been automatically renewed, the expiration date reflects the updated expiration date.) (Note 5) Renewal of agreement, etc. represents the content of renewal of agreement, etc., provided in the lease agreement where the tenant is the lessee, including where the tenant is a sublessor and master lease company under a sublease agreement. (Note 6) The figures for leased area, total contracted rent, and leasehold/guarantee deposits are equivalent to the quasi co- ownership interest of property held by the Investment Corporation. (Note 7) The figures for leased area, total contracted rent, and leasehold/guarantee deposits are equivalent to the Investment Corporation’s partial ownership in the building (including some of co-ownership portion; for the co-ownership portion, the figures calculated on a pro-rata basis in accordance with the co-ownership interests owned by the Investment Corporation are listed). (Note 8) For Sotetsu Fresa Inn Ginza 7 Chome and Sotetsu Fresa Inn Tokyo-Roppongi, total contracted rent is made up of a fixed rent and a proportional rent that arises when annual guest room sales exceed a certain amount. Total contracted rent shows amounts calculated with monthly fixed rent specified in lease agreements multiplied by 12, with the result rounded to the nearest million yen. (Note 9) The Investment Corporation has not obtained permission from the end-tenant or other relevant party of these properties to disclose the relevant information. (Note 10) In the above table, total contracted rent, leasehold/guarantee deposits and leased area may include data of end-tenant lease agreements for which we have received a request for cancellation or termination and end-tenant lease agreements for which rent payment was delinquent as of the end of the reporting period, if the lease agreement was valid as of the end of the reporting period.
Page 54
- 54 - (5) Top End-Tenants in Terms of Leased Area The following table shows the top ten end-tenants in terms of leased area in the entire portfolio as of the end of the reporting period. The data stated for properties for which there is a Fixed-type Master Lease Agreement reflects the terms of the Fixed-type Master Lease Agreement corresponding to that portion, while the data stated for the properties for which there is a Pass-through Master Lease Agreement reflects the terms of each lease agreement executed with the end tenants. End-tenant Property name Leased area (m2) (Note 1) Area ratio (%) (Note 2) Expiration date (Note 3) Form of agreement (Note 4) Hulic Hotel Management Co., Ltd. Hulic Kaminarimon Building 88,725.76 25.6 July 1, 2032 Ordinary building lease agreement Grand Nikko Tokyo Bay Maihama December 31, 2040 Fixed-term building lease agreement Asakusa View Hotel June 30, 2031 Fixed-term building lease agreement Mizuho Bank, Ltd. Hulic Ryogoku Building 32,023.04 9.2 (Note 5) Ordinary building lease agreement Hulic Asakusabashi Edo-dori Hulic Nakano Building Hulic Ueno Building Hulic Kojimachi Building Kichijoji Fuji Building Hulic Hachioji Building Hulic Kobe Building Hulic Gotanda Building Hulic Oji Building Hulic Kobunacho Building Hulic Komagome Building Kameido Fuji Building Hulic Shinjuku Building Edogawabashi Fuji Building Hulic Co., Ltd. Oimachi Redevelopment Building (#2) 25,098.33 7.2 February 6, 2027 Ordinary building lease agreement Oimachi Redevelopment Building (#1) September 30, 2027 HIMEDIC, Inc. Trust Garden Yoganomori 16,547.82 4.8 January 24, 2028 Ordinary building lease agreement Trust Garden Sakurashinmachi January 24, 2028 Trust Garden Suginami Miyamae January 24, 2028 HIMEDIC Residence The Garden Tokiwamatsu February 29, 2036 Charm Care Corporation Co., Ltd. Charm Suite Shinjukutoyama 13,792.86 4.0 October 31, 2045 Ordinary building lease agreement Charm Suite Shakujiikoen October 31, 2044 Hulic Chofu July 20, 2047 Charm Premier Den-en-Chofu March 31, 2048 Keio Corporation Aristage Kyodo 13,279.12 3.8 May 7, 2042 Ordinary building lease agreement Sotetsu Hotel Development Co., Ltd. Sotetsu Fresa Inn Ginza 7 Chome 11,801.21 3.4 September 30, 2046 Fixed-term building lease agreement Sotetsu Fresa Inn Tokyo- Roppongi October 9, 2047 Benesse Style Care Co., Ltd. Aria Matsubara 8,258.27 2.4 September 30, 2030 Ordinary building lease agreement Granda Gakugei Daigaku April 30, 2043
Page 55
- 55 - End-tenant Property name Leased area (m2) (Note 1) Area ratio (%) (Note 2) Expiration date (Note 3) Form of agreement (Note 4) Sakurajyuji Co., Ltd Hulic Shimura-sakaue 6,477.56 1.9 February 29, 2036 Ordinary building lease agreement Hospitalment Hongo March 14, 2044 SOMPO Care Inc. SOMPO Care La vie Re Kita- Kamakura 4,912.57 1.4 March 31, 2029 Ordinary building lease agreement (Note 1) Leased area is equivalent to total floor area, or similar measurement of leased space set out in the lease agreements or similar contracts with end-tenants as of the end of the reporting period. The pertinent items are as follows. • For properties with quasi co-ownership in trust beneficiary rights and properties with partial ownership in the building (including some of co-ownership portion), the total area is equivalent to the Investment Corporation’s interest in each. • For the portion for which there is a Fixed-type Master Lease Agreement, the leasable area to end-tenants is provided. (Note 2) Area ratio is rounded to the nearest tenth. (Note 3) Expiration date is the expiration date shown on the lease agreement with the end tenant as lessee that is in effect as of the end of the reporting period. (Note 4) Form of agreement is the form of agreement described in the lease agreement with the end-tenants as of the end of the reporting period. (Note 5) The Investment Corporation has not obtained permission from the end-tenant or other relevant party of these properties to disclose the relevant information.
Page 56
- 56 - (6) Overview and Income/Loss of Leasing Businesses Reporting period (From March 1, 2026 to August 31, 2026) (Unit: thousands of yen) Property name Hulic Kamiyacho Building Hulic Kudan Building (Land) Toranomon First Garden Rapiros Roppongi Hulic Takadanoba ba Building Hulic Kanda Building Hulic Kandabashi Building Days under management 121 121 184 184 184 184 184 Leasing business revenues 80,057 175,195 292,414 303,475 175,289 153,540 92,532 Leasing business revenue 72,698 175,195 273,127 282,960 159,222 142,372 84,669 Other leasing business revenues 7,359 – 19,287 20,514 16,066 11,167 7,862 Expenses related to leasing business 24,739 26,906 124,104 162,466 72,662 71,713 42,280 Taxes and public dues 6,266 25,660 49,594 56,150 14,835 4,125 11,372 Utilities expenses 4,815 – 18,613 20,903 14,240 9,830 7,943 Insurance expenses 121 35 360 789 336 167 140 Repair expenses 872 – 3,135 990 2,782 1,431 1,599 Property management fees 5,909 875 5,161 5,933 14,518 7,802 5,962 Other expenses related to leasing business 1,341 333 26,016 55,936 1,769 35,032 3,265 Depreciation and amortization 5,411 – 21,223 21,760 24,179 13,322 11,997 Income (loss) from leasing business 55,317 148,289 168,310 141,009 102,627 81,827 50,251 NOI 60,729 148,289 189,533 162,769 126,806 95,149 62,248 (Unit: thousands of yen) Property name Hulic Kakigaracho Building Ochanomizu Sola City Hulic Higashi Ueno 1 Chome Building Tokyo Nishi Ikebukuro Building Hulic Toranomon Building Hulic Shibuya 1 Chome Building Hulic Jimbocho Building Days under management 184 184 184 184 184 184 184 Leasing business revenues 125,873 (Note 1) 100,063 56,902 456,039 138,044 47,749 Leasing business revenue 87,599 (Note 1) 89,792 56,182 431,496 128,528 41,115 Other leasing business revenues 38,273 (Note 1) 10,270 720 24,543 9,515 6,633 Expenses related to leasing business 66,425 (Note 1) 48,924 20,785 197,093 43,930 18,226 Taxes and public dues 10,993 (Note 1) 9,581 2,537 76,121 10,458 3,734 Utilities expenses 8,248 (Note 1) 7,739 – 22,809 7,078 3,106 Insurance expenses 160 (Note 1) 171 215 435 175 77 Repair expenses 19,415 (Note 1) 1,393 – 2,828 822 920 Property management fees 11,188 (Note 1) 10,323 9,790 40,968 7,900 3,828 Other expenses related to leasing business 4,940 (Note 1) 2,184 3,522 1,503 1,366 1,043 Depreciation and amortization 11,477 (Note 1) 17,530 4,719 52,426 16,129 5,515 Income (loss) from leasing business 59,448 (Note 1) 51,138 36,117 258,946 94,113 29,523 NOI 70,926 707,840 68,669 40,837 311,372 110,242 35,038
Page 57
- 57 - (Unit: thousands of yen) Property name Hulic Gotanda Yamate-dori Building (Note 2) Bancho House Ebisu Minami Building Hulic Iidabashi Building Hulic Asakusabashi Building Hulic Ebisu Building Hulic Ryogoku Building Days under management 184 184 184 184 184 184 184 Leasing business revenues 3,234 (Note 1) (Note 1) 45,400 278,978 40,219 160,205 Leasing business revenue – (Note 1) (Note 1) 41,223 265,381 37,615 132,208 Other leasing business revenues 3,234 (Note 1) (Note 1) 4,177 13,596 2,603 27,997 Expenses related to leasing business 69,120 (Note 1) (Note 1) 24,811 205,352 14,305 69,598 Taxes and public dues 6,199 (Note 1) (Note 1) 4,065 12,612 3,174 10,890 Utilities expenses 2,659 (Note 1) (Note 1) 4,131 22,369 2,667 13,389 Insurance expenses 182 (Note 1) (Note 1) 75 532 47 294 Repair expenses 16,552 (Note 1) (Note 1) 1,959 4,717 397 12,418 Property management fees 6,323 (Note 1) (Note 1) 4,109 56,711 2,958 11,824 Other expenses related to leasing business 24,041 (Note 1) (Note 1) 2,950 14,957 3,168 1,308 Depreciation and amortization 13,162 (Note 1) (Note 1) 7,519 93,453 1,890 19,472 Income (loss) from leasing business (65,885) (Note 1) (Note 1) 20,589 73,626 25,914 90,606 NOI (52,723) 57,030 43,656 28,109 167,079 27,804 110,079 (Unit: thousands of yen) Property name Hulic Asakusabashi Edo-dori Hulic Nakano Building Hulic Ueno Building Hulic Kojimachi Building Kichijoji Fuji Building Hulic Hachioji Building Hulic Kobe Building Days under management 184 184 184 184 184 184 184 Leasing business revenues 148,386 99,012 120,669 275,242 (Note 1) 155,340 216,734 Leasing business revenue 138,575 87,896 107,421 263,856 (Note 1) 142,705 199,262 Other leasing business revenues 9,810 11,116 13,247 11,385 (Note 1) 12,634 17,472 Expenses related to leasing business 56,766 34,272 39,438 112,246 (Note 1) 39,994 69,954 Taxes and public dues 8,880 7,204 12,032 28,780 (Note 1) 6,668 19,209 Utilities expenses 6,890 6,038 9,422 11,481 (Note 1) 10,072 13,091 Insurance expenses 251 168 178 331 (Note 1) 193 264 Repair expenses 1,733 598 258 8,152 (Note 1) 288 2,520 Property management fees 9,513 9,726 8,736 22,140 (Note 1) 8,310 21,405 Other expenses related to leasing business 1,243 1,079 3,233 12,224 (Note 1) 1,214 2,077 Depreciation and amortization 28,253 9,457 5,577 29,135 (Note 1) 13,248 11,386 Income (loss) from leasing business 91,620 64,739 81,230 162,995 (Note 1) 115,345 146,780 NOI 119,873 74,197 86,808 192,131 134,202 128,593 158,166
Page 58
- 58 - (Unit: thousands of yen) Property name Hulic Gotanda Building Hulic Oji Building Hulic Kobunacho Building Hulic Komagome Building Kameido Fuji Building Hulic Shinjuku Building Hulic Ginza Building Days under management 184 184 184 184 184 184 63 Leasing business revenues 174,327 149,627 320,882 (Note 1) (Note 1) 449,331 92,471 Leasing business revenue 163,586 131,994 294,894 (Note 1) (Note 1) 433,113 89,669 Other leasing business revenues 10,740 17,633 25,987 (Note 1) (Note 1) 16,217 2,802 Expenses related to leasing business 46,087 60,723 156,748 (Note 1) (Note 1) 100,096 25,003 Taxes and public dues 14,424 11,161 35,097 (Note 1) (Note 1) 55,503 – Utilities expenses 9,405 14,286 21,996 (Note 1) (Note 1) 10,695 1,591 Insurance expenses 223 194 674 (Note 1) (Note 1) 300 145 Repair expenses 297 999 25,144 (Note 1) (Note 1) 473 – Property management fees 8,915 10,373 32,475 (Note 1) (Note 1) 17,028 7,914 Other expenses related to leasing business 1,198 1,935 2,856 (Note 1) (Note 1) 1,951 154 Depreciation and amortization 11,622 21,772 38,504 (Note 1) (Note 1) 14,142 15,197 Income (loss) from leasing business 128,239 88,904 164,133 (Note 1) (Note 1) 349,234 67,467 NOI 139,862 110,677 202,637 36,278 65,905 363,377 82,665 (Unit: thousands of yen) Property name Edogawabas hi Fuji Building Oimachi Redevelop- ment Building (#2) Oimachi Redevelop- ment Building (#1) Hulic Jingu- Mae Building Hulic Todoroki Building HULIC &New SHIBUYA HULIC &New SHINBASHI Days under management 63 184 184 184 184 184 184 Leasing business revenues (Note 1) 312,000 218,931 88,512 55,122 70,824 83,910 Leasing business revenue (Note 1) 312,000 218,931 83,098 48,155 64,033 77,020 Other leasing business revenues (Note 1) – – 5,414 6,966 6,790 6,889 Expenses related to leasing business (Note 1) 90,021 86,163 24,956 24,530 27,220 32,854 Taxes and public dues (Note 1) 37,948 41,659 8,292 4,659 5,195 5,704 Utilities expenses (Note 1) – – 5,715 6,281 6,426 5,948 Insurance expenses (Note 1) 515 1,732 75 90 54 105 Repair expenses (Note 1) – 3,170 522 1,943 2,612 817 Property management fees (Note 1) 6,240 4,378 3,396 4,581 3,200 5,876 Other expenses related to leasing business (Note 1) 504 7,970 943 1,158 1,034 1,337 Depreciation and amortization (Note 1) 44,813 27,252 6,011 5,815 8,696 13,064 Income (loss) from leasing business (Note 1) 221,978 132,767 63,556 30,591 43,603 51,055 NOI 23,133 266,792 160,019 69,567 36,407 52,300 64,119
Page 59
- 59 - (Unit: thousands of yen) Property name Hulic Shimura- sakaue Hulic Mejiro Hulic Ginza World Town Building Sotetsu Fresa Inn Ginza 7 Chome Sotetsu Fresa Inn Tokyo- Roppongi Hulic Tsukiji 3 Chome Building Hulic Kaminarimon Building Days under management 184 184 63 184 184 184 184 Leasing business revenues 251,387 151,205 43,518 287,149 240,602 (Note 1) (Note 1) Leasing business revenue 219,172 140,213 43,176 287,149 240,602 (Note 1) (Note 1) Other leasing business revenues 32,215 10,991 342 – – (Note 1) (Note 1) Expenses related to leasing business 144,073 56,162 3,441 60,761 68,910 (Note 1) (Note 1) Taxes and public dues 22,549 10,907 – 28,527 25,122 (Note 1) (Note 1) Utilities expenses 31,676 8,208 599 – – (Note 1) (Note 1) Insurance expenses 460 234 31 344 275 (Note 1) (Note 1) Repair expenses 2,540 1,509 100 – 2,300 (Note 1) (Note 1) Property management fees 27,269 10,634 963 2,400 2,201 (Note 1) (Note 1) Other expenses related to leasing business 5,216 863 201 604 504 (Note 1) (Note 1) Depreciation and amortization 54,359 23,803 1,544 28,884 38,506 (Note 1) (Note 1) Income (loss) from leasing business 107,314 95,043 40,077 226,388 171,691 (Note 1) (Note 1) NOI 161,674 118,846 41,622 255,273 210,198 (Note 1) 108,126 (Unit: thousands of yen) Property name Grand Nikko Tokyo Bay Maihama Asakusa View Hotel Aria Matsubara Trust Garden Yoganomori Trust Garden Sakurashin- machi Trust Garden Suginami Miyamae HIMEDIC Residence The Garden Tokiwamatsu Days under management 184 184 184 184 184 184 184 Leasing business revenues (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) Leasing business revenue (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) Other leasing business revenues (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) Expenses related to leasing business (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) Taxes and public dues (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) Utilities expenses (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) Insurance expenses (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) Repair expenses (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) Property management fees (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) Other expenses related to leasing business (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) Depreciation and amortization (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) Income (loss) from leasing business 599,323 (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) (Note 1) NOI 658,320 620,526 96,495 160,670 81,433 75,153 68,761
Page 60
- 60 - (Unit: thousands of yen) Property name SOMPO Care La vie Re Kita- Kamakura Charm Suite Shinjuku- toyama Charm Suite Shakujiikoen Hulic Chofu Aristage Kyodo Granda Gakugei Daigaku Charm Premier Den-en- Chofu Days under management 184 184 184 184 184 184 184 Leasing business revenues (Note 1) (Note 1) (Note 1) 94,206 (Note 1) (Note 1) (Note 1) Leasing business revenue (Note 1) (Note 1) (Note 1) 86,368 (Note 1) (Note 1) (Note 1) Other leasing business revenues (Note 1) (Note 1) (Note 1) 7,837 (Note 1) (Note 1) (Note 1) Expenses related to leasing business (Note 1) (Note 1) (Note 1) 36,364 (Note 1) (Note 1) (Note 1) Taxes and public dues (Note 1) (Note 1) (Note 1) 6,811 (Note 1) (Note 1) (Note 1) Utilities expenses (Note 1) (Note 1) (Note 1) 7,359 (Note 1) (Note 1) (Note 1) Insurance expenses (Note 1) (Note 1) (Note 1) 142 (Note 1) (Note 1) (Note 1) Repair expenses (Note 1) (Note 1) (Note 1) 102 (Note 1) (Note 1) (Note 1) Property management fees (Note 1) (Note 1) (Note 1) 2,167 (Note 1) (Note 1) (Note 1) Other expenses related to leasing business (Note 1) (Note 1) (Note 1) 518 (Note 1) (Note 1) (Note 1) Depreciation and amortization (Note 1) (Note 1) (Note 1) 19,262 (Note 1) (Note 1) (Note 1) Income (loss) from leasing business (Note 1) (Note 1) (Note 1) 57,841 (Note 1) (Note 1) (Note 1) NOI 51,419 74,039 74,022 77,103 191,829 42,889 49,935 (Unit: thousands of yen) Property name Sonare Shakujii Hospital- ment Hongo Tabata Network Center Hiroshima Network Center Atsuta Network Center Sapporo Network Center Keihanna Network Center Days under management 184 184 15 15 15 15 15 Leasing business revenues (Note 1) (Note 1) 3,636 3,535 2,963 6,750 3,794 Leasing business revenue (Note 1) (Note 1) 3,636 3,535 2,963 6,750 3,794 Other leasing business revenues (Note 1) (Note 1) – – – – – Expenses related to leasing business (Note 1) (Note 1) 792 1,505 1,356 3,382 1,748 Taxes and public dues (Note 1) (Note 1) – – – – – Utilities expenses (Note 1) (Note 1) – – – – – Insurance expenses (Note 1) (Note 1) 8 12 10 29 17 Repair expenses (Note 1) (Note 1) – 292 406 1,658 160 Property management fees (Note 1) (Note 1) 58 106 77 90 96 Other expenses related to leasing business (Note 1) (Note 1) 41 41 41 41 41 Depreciation and amortization (Note 1) (Note 1) 683 1,053 821 1,562 1,432 Income (loss) from leasing business (Note 1) (Note 1) 2,843 2,030 1,606 3,367 2,046 NOI 47,657 60,557 3,527 3,083 2,427 4,930 3,478 (Note 1) The Investment Corporation has not obtained permission from the end-tenant or other relevant party of these properties to disclose the relevant information. (Note 2) Due to the impact of the fire at the subject property, the income (loss) from leasing business and NOI is negative. However, insurance income of ¥116,254 thousand was recorded under non-operating income on page 16 of the Statements of Income and Retained Earnings (unaudited).
Page 61
- 61 - (Note 3) NOI is calculated by using the following formula. NOI = Leasing business revenues - Expenses related to leasing business + Depreciation and amortization