Tokyu REIT : FINANCIAL REPORT FOR THE FISCAL PERIOD ENDED JANUARY 2022

March 17, 2022

1-12-1, Dogenzaka, Shibuya-ku, Tokyo 150-0043, JAPAN

FINANCIAL REPORT

FOR THE FISCAL PERIOD ENDED JANUARY 2022

TOKYU REIT, Inc. is listed on the Tokyo Stock Exchange with the securities code number 8957. URL: https://www.tokyu-reit.co.jp/eng/

Contact: Tokyu Real Estate Investment Management Inc. (Investment Management Company) Kazuyoshi Kashiwazaki, Representative Director & President, Chief Executive Officer Takeru Osawa, Director, Executive Officer, Chief Financial Officer

and General Manager, Business Planning & Development Tel: [phone]

Planned date of filing Securities Report: April 22, 2022

Planned start of dividend payments: April 15, 2022

Supplementary documents for results: YES

Results briefing (for institutional investor and analysts): YES

This financial report has been prepared in accordance with Japanese accounting standards and Japanese law. Figures have been rounded down to eliminate amounts of less than one million yen.

PERFORMANCE FOR THE FISCAL PERIOD ENDED JANUARY 2022 (August 1, 2021 - January 31, 2022)

(1) Business Results			Percentage change shows the increase and decrease ratio to the previous period.
		Operating Revenues	Operating Income	Ordinary Income
		(Millions of Yen)	(%)	(Millions of Yen)	(%)	(Millions of Yen)		(%)
Period Ended	11,641	44.3	7,481	87.9	7,072	99.7
January 2022
Period Ended	8,066	-6.3	3,981	-12.3	3,540	-13.3
July 2021
					Return on	Ordinary		Ordinary
				Net Income		Income to
		Net Income	Unitholders'	Income to
		per Unit		Operating
				Equity (ROE)	Total Assets
						Revenues
		(Millions of Yen)	(%)	(Yen)	(%)	(%)		(%)
Period Ended	7,071	99.8	7,233	6.0	3.1	60.7
January 2022
Period Ended	3,540	-13.3	3,621	3.1	1.5	43.9
July 2021
(2) Distributions
				Distribution	Total			Distribution
		Distribution	Total	in Excess of	Distributions	Payout		Ratio to
		per Unit	Distributions	Earnings per	in Excess of	Ratio		Unitholders'
				Unit	Earnings			Equity
		(Yen)	(Millions of Yen)	(Yen)	(Millions of Yen)	(%)	(%)
Period Ended	3,950	3,861	-	-	54.6	3.3
January 2022
Period Ended	3,621	3,539	-	-	100.0	3.1
July 2021

Note: The payout ratio is calculated by the following formula. Payout Ratio=Total Distributions/Net Income×100

Distribution per unit for the fiscal period ended January 2022 is calculated by dividing by the total number of units issued and outstanding the amount obtained after subtracting ¥3,209 million of provision of reserve for reduction entry of replaced property from unappropriated retained earnings.

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TOKYU REIT, Inc.

(3) Financial Position

	Total Assets	Net Assets	Unitholders' Capital to		Net Assets
	Total Assets		per Unit
	(Millions of Yen)	(Millions of Yen)	(%)		(Yen)
Period Ended	226,847	119,059	52.5	121,787
January 2022
Period Ended	235,035	115,527	49.2	118,174
July 2021
(4) Cash Flows
	Cash Flows from	Cash Flows from	Cash Flows from		Cash and Cash
		Equivalents at the end
	Operating Activities	Investing Activities	Financing Activities
		of Period
	(Millions of Yen)	(Millions of Yen)	(Millions of Yen)		(Millions of Yen)
Period Ended	40,510	-21,270	-14,739	7,479
January 2022
Period Ended	4,701	-6,709	324	2,979
July 2021

FORECAST OF RESULTS FOR THE FISCAL PERIOD ENDING JULY 2022 (FEBRUARY 1, 2022 - JULY 31, 2022)

AND THE FISCAL PERIOD ENDING JANUARY 2023 (AUGUST 1, 2022 - JANUARY 31, 2023)

Percentage change shows the increase and decrease ratio to the previous period.

										Distribution
	Operating	Operating	Ordinary	Net		Distribution	in Excess of
	Revenues	Income	Income	Income	per Unit	Earnings
										per Unit
	(Millions	(%)	(Millions	(%)	(Millions	(%)	(Millions	(%)	(Yen)	(Yen)
	of Yen)	of Yen)	of Yen)	of Yen)
Period Ending	8,512	-26.9	4,641	-38.0	4,246	-40.0	4,248	-39.9	3,910	-
July 2022
Period Ending	6,610	-22.3	2,974	-35.9	2,583	-39.2	2,582	-39.2	3,200	-
January 2023

Reference: Estimated net income per unit for the Fiscal Period Ending July 2022: ¥ 4,345 Estimated net income per unit for the Fiscal Period Ending January 2023: ¥ 2,641

Total number of investment units issued and outstanding for the Period Ending July 2022: 977,600 units

Total number of investment units issued and outstanding for the Period Ending January 2023: 977,600 units

Note:	Distribution per unit for the fiscal period ending July 2022 is assumed to be net income less provision of the
	amount of reserve for reduction entry (estimated amount: ¥ 424 million yen).
	Distribution per unit for the fiscal period ending January 2023 is assumed to be distributed through reversal of
	part of the reserve for reduction entry (estimated amount: 545 million yen) in addition to net income.

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TOKYU REIT, Inc.

OTHERS

1. Changes in Account Policies, changes in accounting estimates, and restatement of accounting errors Changes according to revision of account standard: Yes
   Changes according to another reason: No
   Changes in accounting estimates: No
   Restatement of accounting errors: No
2. Total number of investment units issued and outstanding
   The total number of investment units issued and outstanding is 977,600 units as of January 31, 2022 and 977,600 units as of July 31, 2021.
   No investment unit is held by TOKYU REIT itself as of January 31, 2022 and July 31, 2021.

Note 1: Status of auditing procedure

This summary of financial results is not subject to audit procedures by certified public accountant or audit firm.

Note 2: Forecasts for operating revenues, operating income, ordinary income, and net income, distribution per unit and distribution in excess of earnings per unit may differ significantly from actual results due to changes in operating conditions and a variety of factors. Accordingly, TOKYU REIT does not guarantee any distribution amount. Forecasts presented in this document are based on "Assumptions for Forecasts for the Fiscal Period Ending July 2022 and the Fiscal Period Ending January 2023" identified in the separate reference attached.

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TOKYU REIT, Inc.

Assumptions for Forecasts for the Fiscal Period Ending July 2022

and the Fiscal Period Ending January 2023

Forecasts for operating revenues, operating income, ordinary income, net income, distribution per unit and distribution in excess of earnings per unit for the fiscal period ending July 2022 and the fiscal period ending January 2023 are based on the following preconditions and assumptions. If major discrepancies between the following assumptions and initial forecast are found, and if they may cause a certain level of change in forecast figures displayed above, a revised forecast shall be drafted and announced immediately.

	Preconditions and Assumptions
Property portfolio	・Regarding the 32 properties owned by TOKYU REIT as of January 31, 2022, it is assumed that OKI
	System Center (land with leasehold interest) was disposed on February 25, 2022, Meguro
	Higashiyama Building will be acquired on March 24, 2022, and Akasaka 4-chome Building (Tokyu
	Agency Inc. Head Office Building) will be disposed on March 31, 2022. After that, it is assumed that
	there will be no transfers (additional property acquisition or disposition of owned properties) until
	the end of the fiscal period ending January 2023.
Operating revenues	・Rental revenue is calculated in consideration of rent level, occupancy rate, etc. fluctuation factors in
	light of recent real estate market conditions, state of negotiations with tenants, presence of
	competitive properties in the area, etc. In addition, there is assumed to be no payment delay or
	nonpayment by tenants.
	・Gain on sale of real estate, etc. of ¥2,024 million resulting from the disposition of OKI System
	Center (land with leasehold interest) and Akasaka 4-chome Building (Tokyu Agency Inc. Head
	Office Building) is projected in the fiscal period ending July 2022.
	・Occupancy Rates as of the end of the fiscal period ending July 2022 and the fiscal period ending
	January 2023 are projected to be 95.6% and 98.5%, respectively.
Operating expenses	・Outsourcing expenses for the fiscal period ending July 2022 and the fiscal period ending January 2023
	are projected to be ¥399 million and ¥403 million, respectively.
	・Repair, maintenance and renovation expenses for buildings for the fiscal period ending July 2022 and
	the fiscal period ending January 2023 are projected to be ¥361 million and ¥190 million, respectively.
	In an aim to improve the competitiveness of properties and the satisfaction of tenants under
	management, etc., constructions scheduled in the future will be implemented with priority. Actual
	repair, maintenance and renovation expenses for each fiscal period may, however, differ significantly
	from estimated amounts due to unforeseen circumstances or emergencies and the others.
	・Property and other taxes, such as fixed property tax and city planning tax, on real estate TOKYU
	REIT possesses, are calculated based on the amount expected to be imposed in each fiscal period
	(Period Ending July 2022: ¥645 million / Period Ending January 2023: ¥636 million).
	Fixed property tax and other taxes paid as part of the purchase prices to the seller upon the property
	acquisition were not recorded as expenses but included in the relevant property acquisition costs.
	・Depreciation and amortization expenses, including associated costs and additional capital expenditure
	in the future, are calculated based on the straight-line method (Period Ending July 2022: ¥812
	million / Period Ending January 2023: ¥852 million).
	・Rental expenses other than those listed above are calculated in consideration of fluctuation factors
	based on results in past fiscal periods.
	・Operating expenses other than expenses from real estate operation (investment management fees and
	asset custodian fees, etc.) for the fiscal period ending July 2022 and the fiscal period ending January
	2023 are expected to be ¥852 million and ¥760 million, respectively.
Non-operating	・Interest expenses for the fiscal period ending July 2022 and the fiscal period ending January 2023 are
expenses	expected to be ¥368 million and ¥364 million, respectively. Interest expenses include interest
	expense, interest expense on investment corporation bonds, and other financial expenses.

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TOKYU REIT, Inc.

Interest-Bearing	・The balance of interest-bearing debt as of January 31, 2022, is ¥94,400 million (long-term debt of ¥86,400
Debt	million and investment corporation bonds of ¥8,000 million). As for long-term debt of ¥9,400 million
	due for repayment in the fiscal period ending July 2022, it is assumed that ¥1,400 million of the ¥2,400
	million will be repaid while ¥1,000 million will be refinanced, and ¥7,000 million is assumed to be
	entirely refinanced.
	・As for long-term debt of ¥2,200 million due for repayment in the fiscal period ending January 2023, it is
	assumed that it will be entirely refinanced, while investment corporation bonds of ¥3,000 million due for
	redemption in the same period are assumed to be redeemed by issuing investment corporation bonds in
	the same amount.
	・Balance of interest-bearing debt as of the end of the fiscal period ending July 2022 and the fiscal period
	ending January 2023 are projected to be ¥93,000 million (long-term debt of ¥85,000 million and
	investment corporation bonds of ¥8,000 million).
	・LTVs as of the end of the fiscal period ending July 2022 and the fiscal period ending January 2023 are
	projected to be 41.5% and 41.7%, respectively.
	(LTV: Interest-bearing debt (forecast) / total assets (forecast))
Total number of	・It is assumed that there will be no additional issuance of investment units to the 977,600 units issued and
investment units	outstanding as of March 17, 2022, through the end of the fiscal period ending January 2023.
issued and
outstanding
Distribution per	・Distribution per unit is calculated based on the distribution policy stipulated in the Articles of
unit	Incorporation. Calculations are based on a 100% distribution of retained earnings. However, forecasts
	are based on the assumption that, as for the capital gain projected from the disposition of Akasaka
	4-chome Building (Tokyu Agency Inc. Head Office Building), ¥424 million of the ¥1,453 million in
	capital gains, which is to be posted in the fiscal period ending July 2022, is retained through application
	of the "Special Provisions for Taxation in Cases of Repurchase of Specified Assets" (Article 65-7 of Act
	on Special Measures Concerning Taxation) for provision as reserve for reduction entry, up to the limit
	amount of reserve as stipulated in the "Ordinance on Accountings of Investment Corporations."
	・Distribution for the fiscal period ending January 2023 is assumed to be distributed through reversal of
	part of the reserve for reduction entry (Period Ending January 2023: ¥545 million).
	・It is possible that the distribution per unit could change due to various factors, including changes in assets
	under management, changes in rental revenue accompanying changes in tenants, etc., and unexpected
	maintenance and repairs.
Distribution in	・TOKYU REIT does not currently anticipate distribution in excess of earnings per unit.
excess of earnings
per unit
Other	・Forecasts are based on the assumption that any major revisions to regulatory requirements, accounting
	standards and taxation will not impact forecast figures.
	・Forecasts are based on the assumption that there will be no major unforeseen changes to economic trends
	and in real estate and other markets.

This notice may contain forward-looking statements, such as current plans, strategies, and future performance. These forward-looking statements are based on judgments obtained from currently available information. Please be advised that, for a variety of reasons, actual results may differ materially from those discussed in the forward-looking statements. Events that might affect actual results include, but are not limited to, fluctuations of the real estate market in Japan, general conditions of the Japanese economy, competitive pressures and relevant regulations.

This notice is a translation of the original document in Japanese and is prepared solely for the convenience of non-Japanese speakers. There is no assurance as to the accuracy of the English translation. The original Japanese notice shall prevail in the event of any discrepancies between the translation and the Japanese original.

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