SANKEI REAL ESTATE : (Delayed) 6th Fiscal Period (Ended February 2022) Financial Results Briefing Materials

April 22, 2022

6th Fiscal Period (Ended February 2022) Financial Results Briefing Materials

Asset Management

Company

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Table of Contents

Disclaimer

Executive Summary

• 1. Financial Results and Management Highlights

• 2. External Growth Results and Strategy

2-1 External Growth Results …P16

2-2 External Growth Strategy …P17

3.

Internal Growth Results and Strategy

3-1 Internal Growth Results …P22

3-2 Internal Growth Strategy …P25

• 4. Financial Strategy

• 5. ESG Initiatives

Appendix

• … P3

• … P4

• … P15

• … P21

• … P28

• … P31

• … P35

This document is intended for the purpose of providing information on SANKEI REAL ESTATE Inc. (hereinafter, "SANKEI REAL ESTATE"), and is not intended for the purpose of soliciting investment in or recommending the trading of specific products. Please consult your securities company for any purchase of SANKEI REAL ESTATE investment units. When making any investment, investors do so at their sole discretion and risk. The information provided in this document is an analysis or a judgment made by Sankei Building Asset Management Co., Ltd. (hereinafter, "Sankei Building Asset Management") based on information currently available to Sankei Building Asset Management, and Sankei Building Asset Management does not guarantee and is not liable whatsoever for the accuracy, reliability, integrity, etc. thereof. In addition, the content may be changed or abolished without prior notice. The content of this document contains earnings forecasts and other forward-looking statements. These forward-looking statements are not a guarantee of future business performance or financial content of SANKEI REAL ESTATE. All rights to any part of this document belong to Sankei Building Asset Management, and no part of this document shall be used, cited, reproduced, altered, disassembled, transmitted, etc. by any means, electronic or mechanical, for any purpose without permission. This document is not a disclosure document based on the Financial Instruments and Exchange Act. Please contact below if you have any inquiries concerning this document.

Sankei Building Asset Management Co., Ltd.

Finance & IR Department

Phone: [phone]

Executive Summary

Financial Results and Management Highlights

•  In the 6th FP, revenue and profit increased compared with the forecast and from the previous fiscal period ・ Operating revenue: +0.1% from the forecast, +27.7% from the previous fiscal period ・ Operating profit: +0.9% from the forecast, +35.0% from the previous fiscal period

•  Acquired 4 new properties through capital increase through public offering (Sep. 2021)

  ・ Asset size: 96.6 billion yen (+ 25.1 billion yen, +35.1% compared with before)

•  DPU* for the 6th FP increased to 2,979 yen (+21 yen from the forecast, +117 yen from the previous fiscal period)

•  Acquired BELS evaluation for two sub assets (hotels) (Dec. 2021)

Future Growth Strategies

•  External growth and internal growth that enable sustained growth of DPU

  •  Continue to implement diversified investment conscious of the portfolio matrix

  •  Continue to seek room for internal growth and reduce risk of internal degeneration

  •  Handling of emerging risks of internal degeneration

•  Enhancement of sustainability promotion system

  •  Disclosure of ESG benchmarks (improvement of disclosure)

  •  Plans to support the TCFD (Task Force on Climate-Related Financial Disclosures) recommendations

* "DPU" refers to distribution per unit. The same applies below.

1. Financial Results and Management Highlights