Financial Briefing for the 35th Fiscal Period ended …...Financial Briefing for the 35th Fiscal...

October 17, 2019

Financial Briefing for the 35th Fiscal Period

Securities code︓8954

ended August 31, 2019

October 17, 2019

BLANK

Table of Contents

OJR at a Glance 3Our Management Philosophy 4Portfolio Status 5

Performance ResultsGrowth Achievement 7Key Takeaways 8Performance Highlights I 9Performance Highlights II 10Initiatives for DPU Growth 11

External Growth StrategyImproving Portfolio Quality through Asset Reshuffle 13New Acquisition I 14New Acquisition II 15New Acquisition III 16Sponsor Pipeline and Acquisition Track Record from Sponsor 17

Internal Growth StrategyOffices -Occupancy Rates and Tenant Turnover- 19Offices -Rent Renewals- 20Retail Facilities 21Residential Properties and Logistics Facilities 22Hotels and Others 23

Financial StrategyFinancial Strategy I 25Financial Strategy II 26Financial Strategy III 27

Initiatives towards ESGInitiatives towards ESG I -Examples- 29Initiatives towards ESG II -Certifications- 30

AppendixDriving Growth of Unitholder Value 32Our Growth Strategy 33Five Period Performance Summary 34Performance Forecast Comparison I 35Performance Forecast Comparison II 36Period-over-Period Performance Comparison I 37Period-over-Period Performance Comparison II 38Portfolio Summary I 39Portfolio Summary II 40Portfolio Map 41Portfolio Growth 42Disposed Properties 43Overview of Appraisal Value 44Appraisal Value List I 45Appraisal Value List II 46Investor Status 47Compliance System for Property Transaction 48Corporate Profile of Asset Management Company 49Glossary I – III 50-52

2

Profile Features

OJR at a Glance

ORIX JREIT Inc.(Abbreviation: OJR)

Corporate name

8954Securities code

ORIX Asset Management CorporationWholly owned by ORIX Corporation

Asset management

company

February and AugustFinancialclosing

date

JCR: AA (Stable)R&I: AA - (Stable ）

Ratings

As of financial announcement

on Oct. 17, 2019

June 12, 2002(4th J-REIT and 1st diversified J-REIT to be listedin Japan)

Date of listing

Diversified REIT

We build a portfolio that combines growth, profitability and stability

AUM (Acquisition price)

668 billion yen6th largest among all J-REITsas of Sep 31, 2019

Number of properties as of financial announcementon Oct. 17, 2019

111

Asset type as of financial announcementon Oct. 17. 2019

ORIX Synergy

We carefully invest in properties from our solid pipeline

Approx. 90%(319 billion yen)

Operating Expertise

We continuously enhance our portfolio quality

+12%(Increased for 8 consecutive fiscal periods)+7% (Increased for 12 consecutive fiscal periods)

Ave. Building Age as of financial announcementon Oct. 17, 2019

17.0 years(12.1 years at the end of Aug. 2002)

Percentage of properties acquired from ORIX Group during and after FP23 (Aug. 2013)

Offices53.8%

Retail Facilities

16.3%

Residential Properties

10.2%

Logistics Facilities 5.5%

Hotels and Others 14.1%

TargetOffice ratio

approx. 50%±10%

Rent Fluctuation Rate upon Turnover in officesas of FP35 (Aug. 2019)

Rent Fluctuation Rate upon Renewal in officesas of FP35 (Aug. 2019)

3

Our Management Philosophy

External Growth Strategy• Broad investment opportunities as

a diversified REIT• Ability to replace assets• Utilizing ORIX synergy

Internal Growth Strategy• Flexible leasing options distinctive to

a diversified REIT• Direct property management• Utilizing ORIX synergy

Asset

Enhancing portfolio profitability and stability

Financial Strategy• Reducing financing costs• Improving financial stability• Appropriate cash management

Equity

DebtOptimizingfinancial efficiency

Sustainable growth of

unitholder value

We aim to enhance unitholder value by improving pro fitability and stability of our portfolio, reducingfunding costs and improving financial stability

4

Greater Tokyo Area 70.3%

6 Central Tokyo Wards

41.0%

Remaining Tokyo Wards 10.4%

Other Parts of the Greater Tokyo Area

18.9%

Other Areas29.7%

TargetGreater

Tokyo Area approx.

70%±10%

Occupancy rate NOI yield Yield after

（％）（％） depreciation （％）

Offices 359.9 54 99.1 5.1 4.3 18.8

Retail Facilities 108.9 28 99.7 5.6 4.8 11.8

Residential Properties 68.2 14 95.9 5.7 4.5 12.4

Logistics Facilities 37.1 5 100 5.7 4.3 10.9

Hotels and Others 94.4 10 99.8 5.3 4.1 20.7

Overall Portfolio 668.6 111 99.2 5.3 4.4 17.0

Total acquisitionprice (billion yen)

Average buildingage (year)

Properties

Asset type

Portfolio Status as of financial announcement on Oct. 17, 2019

Portfolio Profile

Portfolio Composition based on Acquisition PriceRent Condition based on Actual Rent

Area

Offices53.8%

Retail Facilities

16.3%

Residential Properties

10.2%

Logistics Facilities 5.5%

Hotels and Others 14.1%

TargetOffice ratio

approx. 50%±10%

5

Fixed rent97%

Variable rent3%

Performance Results

3,200

3,300

3,400

3,500

3,600

3,700

3,800

90

100

110

120

130

140

150

Normalized DPU(right)

OJR stock price (left)

TSE REIT Index (left)

Consistent growth in normalized DPU corresponding to environmental changes

7Growth Achievement

Enhance portfolio quality through asset reshuffle

Note2: OJR stock prices and the TSE REIT Index indicate fluctuations through September 30, 2019, indexed by setting the price and index on April 19, 2018, the release date for earnings for the 32nd fiscal period, as 100.

FY33（Aug. 2018）as of financial announcement

FY34（Feb. 2019）as of financial announcement

FY35（Aug. 2019）as of financial announcement

FY32（Feb. 2018）as of financial announcement

MSCI Japan ESG Select Leaders Index

Disposition ︓3 regional suburban-type retail facilities (A Section of Kobe Momoyamadai Shopping Center, Cross Mall Shimonoseki-Chofu, GRAN MART Tegata)

OJR’s first green bonds issuance

Acquisition ︓Sendai Minamimachidori Building

Acquisition ︓Hotel Universal Port

（yen／unit）Acquisition ︓Felicita Sanjo Kiyamachi

Disposition ︓Okayama Kume Retail Facility

Disposition ︓KN Jiyugaoka Plaza

Acquisition ︓TOKYU REIT Akasaka Hinokicho Building

Credit Rating UpgradeR&I（A+ → AA-）

3.333

3,430

3,540

3,671

Note1: Normalized DPUs are calculated by deducting or adding one-off factors from two-period-ahead-DPU forecast announced at each financial announcement.

Business landscape Our performance result Our strategy

� Opportunities to invest in quality properties are scarce and remains to be challenging

� Improvement in portfolio quality through property dispositions is favored

� Conducted our first asset swap with our peer company by acquiring an office in Akasaka and disposing an office in Jiyugaoka.

� Acquired two urban-type retail facilities conveniently located in major cities (Sendai and Kyoto) from Sponsor

� Disposed a regional suburban retail facilitiy due to concerns over future competitiveness

� Continue to consider asset reshuffle with a focus on improving portfolio quality

� Invest with versatility using our various funding sources. Currently considering offices, urban retail facilities and complex facilities

� Selectively dispose properties with concerns over future competitiveness or profitability. Currently focusing on regional suburban retail facilities

� Office demand remains strong, and vacancy rates are low levels while rents are increasing nationwide

� Maintained high occupancy Overall: 99.2%, Offices: 99.1%

� Rent fluctuation rates for offices during FP35 (Aug. 2019) has improved:

Increase upon turnover: +12％(Increased for 8 consecutive fiscal periods)

Increase upon renewal: +7％(Increased for 12 consecutive fiscal periods)

� 改装

� Continue to drive high occupancy and improve leasing conditions utilizing our direct property management expertise

� Borrowing environment is generally favorable under BOJ’s continuous monetary easing policy

� Increased likelihood of extended low interest rate policy and possibility of further deepening

� LTV: 43.4%. Secured borrowing capacity of 90 billion yen (up to LTV of 50%)

� Issued our first green bonds of 7 billion yen

� Strengthen financial stability while considering to reduce funding costs

� Maintain borrowing capacity to actively pursue suitable acquisition opportunities

� Continue to consider issuing investment corporation bonds including green bonds

� Utilize internal reserves to flexibly deal with temporary factors while considering DPU and contribute to the sustainable growth of unitholder value

Internal grow

thE

xternal grow

thF

inancialstrategy

8Key Takeaways

Our target is to provide mid-to long-term sustainab le growth of unitholder value

Previous financial announcementas of Apr. 18, 2019

Financial announcementas of Oct. 17, 2019

FP37 (Aug. 2020)

Property-related tax to beexpensed per unit (estimate)

Impact on internal reserves from

disposition (Note3) －

Normalized DPU 3,540 yen 3,671 yen

Change and factors+23 yen

131 yen (+3.7%)Internal growth and others: +120 yen

External growth (Asset reshuffle): +11 yen

FP36 (Feb. 2020) 3,540 yen

－

0 yen -2 yen

3,650 yen

DPU

3,252 3,230

3,299

3,489 3,4873,430

3,580 3,540

3,650

6854

3,000

3,100

3,200

3,300

3,400

3,500

3,600

3,700

3,800

FP30Feb. 2017

FP31Aug. 2017

FP32Feb. 2018

FP33Aug. 2018

FP34Feb. 2019

FP35Aug. 2019

FP36Feb. 2020

FP37Aug. 2020

Forecast 1 year ago

Forecast6 months

ago

Forecast 6 months

agoActual

New forecast

New forecast

FP36Feb. 2020

3,755

Performance Highlights IAchieved normalized DPU growth by 3.7%

Performance Forecast Comparison

(yen/unit)

Page 35-36

3,755yen3,580 yen(+175 yen)

Page 37-38

DPU Trend (Note1)

Normalized DPU

Period-over-Period Performance Comparison

Note 1: “Forecast 1 year ago” refers to the DPU forecast as of the financial announcement in the second last fiscal periods and “Forecast 6 months ago” refers to DPU forecasts as of the financial announcement for the last fiscal period.Note 2: “Earthquake restoration at ‘intervillage OH! MAGARI’” refers to a restoration work for the partial damage to the facility such as fallen ceiling material caused by the 2018 Hokkaido Eastern Iburi Earthquake.Note 3: “Impact on internal reserves from disposition” refers to the impact resulting from internal reserves due to the disposition of “KN Jiyugaoka Plaza” exceeding the gains on disposition.

9

Allocated a portion of internal reserves to offset a part of

earthquake restoration expense at “intervillage OH! MAGARI”

(Note2). As for remaining expenses, we plan to allocate gain from

property disposition. Timing and amount are subject to change.

3,710

3,540

3,7103,650

+107

+55

+170

+13-41

-54

-67

-49-1 -23

3,000

3,100

3,200

3,300

3,400

3,500

3,600

3,700

3,800

3,900

Increase in normalized DPU through stable internal g rowth and asset reshuffle despite property disposit ion

DPU change factor

DPU Positive factor Negative factor

Performance Highlights II

(yen/unit)

10

Contribution from properties acquired

(Sendai, Kyoto, Akasaka49％)Internal

growth and others

i. Gain on property

disposition(Okayama,

Jiyugaoka49％)

Impact fromasset reshuffle

（Acquisition: Akasaka51％,Disposition: Jiyugaoka 51％,

Property-related tax to be expensed: Sendai, Kyoto,

Akasaka49％）

iii. Internal reserve of gain

on property disposition

(Okayama, Jiyugaoka49％)

Loss of rental income from properties disposed(Okayama,

Jiyugaoka49％)

Internal reserve from

gain on property

disposition(Jiyugaoka51%）

Internal growth and

others

Absence of one-off factors(i, ii, iii)

ii. Earthquake restoration expense at “intervillage

OH! MAGARI”

FP36（Feb. 2020）

Forecast6 months ago

FP36（Feb. 2020）New forecast

FP37（Aug. 2020）New forecast

Note : Sendai: Sendai Minamimachidori Building, Kyoto: Felicita Sanjo Kiyamachi, Okayama: Okayama Kume Retail Facility, Akasaka: TOKYU REIT Akasaka Hinokicho Building, Jiyugaoka: KN Jiyugaoka PlazaOJR acquired a 49% co-ownership interest in Akasaka on October 1, 2019, and plans to acquire the remaining 51% co-ownership interest on March 4, 2020.OJR disposed a 49% co-ownership interest in Jiyugaoka on October 1, 2019, and plans to dispose the remaining 51% co-ownership interest on March 4, 2020.

The above figures represent a hypothetical impact from each initiative effecting DPU according to the financial performance assumed by OAM based on certain assumptions. We, however, do not provide any guarantee with respect to the probability, the amount and the timing of such impact. In particular, we can not guarantee that the new acquisitions will be completed with the above terms, since the terms are subject to changes due to market conditions. DPU may also change due to other factors not listed above.

Initiatives for DPU Growth

Rent fluctuation rate in existing offices:2.0％ per year

Approx. 80 yen per unit

Impact on DPU by multiplying change in forecasted office rental revenue of approx. 10 bil. yen during a fiscal period assumed from contract rents in properties owned by OJR at the end of FP35 (Aug. 2019) by forecasted rent fluctuation rate of 2.0% per year . This 2.0% figure takes into account actual results of change in rents attributable to tenants turnovers/rent renewals in offices from FP32 (Feb. 2018) to FP35 (Aug. 2019) . (Note2)

Variable rate of averagefunding costs:0.04％ pt. per year


Impact on DPU attributable to change in financing-related cost calculated by multiplying balance of interest-bearing liabilities of 291 bil. yen at the end of FP35 (Aug. 2019) by forecasted variable rate (0.04% per year) of averag e funding costs

Acquisition by utilizing FCFof 5 bil. yen


Impact on DPU during a full fiscal period by utilizing 1 year FCF of 5 bil. yen (Please refer to page 34) for acquisition that generates earning yield after depreciation of approx. 4.0% (after deducting AM fees) (Note1)

Impact on DPU during a full fiscal period by utilizing 10 bil. yen equivalent to approx. 1% of LTV based on total assets out of borrowing capacity of 90 bil. yen at the end of FP35 (Aug. 2019) (Please refer to page 26) for acquisition that generates earning yield after depreciation of approx. 4.0% (after deducting AM fees and funding costs) (Note1)

Note1: This yield indicates the same level of actual yield after depreciation in the portfolio from FP32 (Feb. 2018) to FP35 (Aug. 2019) .Note2: Given frequency of the tenant turnovers or rent renewals in each asset type, DPU impacts by change in rents of offices which account for approx. 50% of our total rental revenue are shown in the above simulation.Note3: OJR makes assumptions that DPU simulations are based on the total of 2,760,000 investment unit outstanding at the end of FP35 (Aug. 2019) .

Acquisition by utilizing borrowing capacity of 10 bil. yen


External Growth StrategySwift acquisition by using acquisition capacity

Internal Growth StrategyImprove leasing conditions

Financial StrategyReduce average funding costs

An image of each initiative contributing to DPU gro wth

Aim for mid-to long-term stable growth of DPU throu gh a broad variety of strategies

11

External Growth Strategy

OJR’s first asset exchange transaction between our peer J-REIT company. Acquired an office that can leverag e our strength.

13Improving Portfolio Quality through Asset Reshuffle

TOKYU REIT Akasaka Hinokicho Building

（Minato-ku, Tokyo ）

KN Jiyugaoka Plaza

（Meguro-ku, Tokyo ）

Acquisition Acquisition Disposition

Felicita Sanjo Kiyamachi

（Kyoto-shi, Kyoto ）

Sendai Minamimachidori

Building（Sendai-shi, Miyagi ）

i. A Section of Kobe MomoyamadaiShopping Center (Land right)（Kobe-shi, Hyogo ）

ii. Cross Mall Shimonoseki-Chofu（Shimonoseki-shi, Yamaguchi ）

iii. GRAN MART Tegata （Akita-shi, Akita ）iv. Okayama Kume Retail Facility （Okayama-shi, Okayama ）

i.

iii.

ii.

iv.

Acquired urban-type retail facilities for its stabi lity and disposed regional suburban-type retail facilities in view of future risk

Price:

4,800 million yen

Price:

3,160 million yen

� Immediate focus is on its existing rent gap.

� With a wide range of future options given its scarcity in the area and age (ie; rebuilding or redevelopment)

Total price:

7,020 million yen

Total price:

7,650 million yen

� Stable, but future growth is limited. � Conveniently located in

major cities� Can attract a wide range of

tenants primarily restaurants

� Risk of potential competitors coming into the area

� Elevated early termination risk from major tenants

� Concern in deteriorating future profitability upon major tenants vacating

Offices Retail Facilities

Disposition

14

●Can also expect a wide range of future options, such as rebuilding or redevelopment given its scarcity in the area and age.

Chart 1: New office supply percentage by grade dur ing past ten years (2009-2018)

� Rent has been flat despite the market’s recovery after the global financial crisis.

TOKYU REIT Akasaka Hinokicho BuildingOffices

New Acquisition I

76%

10%

10%4%

Akasaka/Roppongi/Kamiyacho area

Total15％

62%11%

17%

10%

Tokyo central 5 wards

Total27％

Grade A Grade A-Minus Grade B Under Grade B

Note1: To be acquired over the following two periodsI. October 1, 2019 2,352 million yen (Co-ownership interest representing 49%) Ⅱ March 4, 2020 2,448 million yen (Co-ownership interest representing 51%)

Note2: As of the end of August 2019Note3: Prepared by OAM based on a survey data from CBRE Inc. and

disclosure material of the seller.

Grade A : Offices with 10,000 tsubo or more Gross Floor Area (GFA)Grade A-Minus : Offices with 7,000 tsubo or more GFAGrade B : Offices with 2,000 tsubo or more GFAUnder Grade B : Offices with less than 2,000 tsubo GFA←TOKYU REIT Akasaka Hinokicho Building

●Premier location with an approximately 4-minute walk from subway “Akasaka Station.”

●High scarcity with a limited supply of medium-sized offices (refer to Chart 1) in the Akasaka/Roppongi/Kamiyacho area.

●Strong growth potential in current rent (refer to Chart 2). OJR’s robust internal growth capability can be deployed.

●Maintained competitiveness despite 35 years building age with the replacement of the air conditioning system and elevator.

Chart 2: Rent trend of the property and the market

90

100

115

0

20

40

60

80

100

120

140

160

1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q 3Q 1Q

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Trend of monthly rent including parking rent at TOKYU REIT Akasaka Hinokicho BuildingTrend of assumed achievable rent in the Akasaka/Roppongi/Kamiyacho area (Grade B)

Acquisition price 4,800 million yen　(Note1)

Appraisal value 5,100 million yen

Seller TOKYU REIT, Inc.

NOI yield 4.3%

Yield afterdepreciation

4.1%

Occupancy rate 100%　(Note2)

Location Minato-ku, Tokyo

Land area 866.61m2

Building area 4,058.92m2

Stories 7

Completion August 1984

15New Acquisition IISendai Minamimachidori BuildingRetail Facilities

Note1: Calculated by dividing Net Operating Income based on the direct capitalization method indicated in the appraisal reports at the time of acquisition by the acquisition price. The figures are rounded to the one decimal place.

Note2: Calculated by dividing (Net Operating Income based on the direct capitalization method indicated in the appraisal reports at the time of acquisition - Depreciation estimated by OAM) by the acquisition price. The figures are rounded to the one decimal place.

Note3: As of end of August 2019

Acquisition price 3,900 million yen


Seller Sponsor

NOI yield 4.7% (Note1)


3.4% (Note2)

Occupancy rate 96.0% (Note3)

Location Sendai-shi, Miyagi

Land area 621.36m2


Stories8 stories and with 1underground floor

Completion November 2017

� Relatively new urban-type retail facility developed by the ORIX Group.� Located in an area where both OJR and the ORIX Group are both highly familiar with. OJR currently

owns a neighboring retail facility “aune Sendai”.� Situated in an area in front of Sendai Station, the largest passenger station in the Tohoku region. � Offers easy access to JR Sendai station with an approx. 5-minute walk. Across the street from the

entrance to the subway Sendai station.� Can attract a wide range of tenants by its excellent location. � The current tenants include rental conference rooms, a fitness gym, an upscale restaurant offering local

food, a café, and several pubs, among others.

16

Guest room at “capsule hotel”

New Acquisition IIIFelicita Sanjo KiyamachiRetail Facilities

Facing Takasegawa River

Note: As of end of August 2019

Acquisition price 3,120 million yen


Seller Sponsor

NOI yield 4.2%


3.6%

Occupancy rate 100% (Note)

Location Kyoto-shi, Kyoto

Land area 541.00m2


Stories10 stories with 1underground floor

Completion June 2007

� An urban-type retail facility conveniently located approx. 3 minutes walk from Sanjo Station.

� High visibility located on the corner facing SanjoStreet and facing the Takasegawa River offering exceptional views

� Walking distance from famous sightseeing spots such as Kamogawa, Pontocho and Gion. Also located in the center of Kyoto City that can attract strong lodging demand for tourists in Kyoto.

� The current tenants are composed of primarily restaurants, capsule hotel and a yoga studio.

� A long-term fixed agreement with a capsule hotel operator on the upper four floors (7th to 10th floors; accounts for about 30% of the total rental space).

3328

4842

31

48

26

45

12

1

34

03 5

0

10

20

30

40

50

FP23Aug. 2013

FP24Feb. 2014

FP25Aug. 2014

FP26Feb. 2015

FP27Aug. 2015

FP28Feb. 2016

FP29Aug. 2016

FP30Feb. 2017

FP31Aug. 2017

FP32Feb. 2018

FP33Aug. 2018

FP34Feb. 2019

FP35Aug. 2019

FP36Feb. 2020

Other Sponsor(bil. yen)

Note: “ORIX Group’s real estate segment assets” is prepared independently by OAM based on “Consolidated Financial Results Supplementary Information for the Three-month Ended Mar. 31, 2020” (based on book value as of June 30, 2019) released by ORIX Corporation. As of October 17, 2019, the date of financial announcement, OJR has no plan to purchase the above-mentioned properties.

Rental real estate: 329 billion yen Operating Assets (including hotels and inns): 177 billion yen

Driving external growth by utilizing ORIX Synergy

17

Office

ORIX Yaesu-Dori Building

（Chuo-ku, Tokyo）

Office

Hotel

Naha Shin-ToshinCenter Building

（Okinawa）

Retail Facility

Felicita Shinsaibashi

（Osaka）

Residential property

HUNDRED CIRCUS East Tower

（Shinjuku-ku, Tokyo）

Hotel, Serviced apartmentLogistics facility

MatsubushiLogistics Center

（Saitama）

Hilton Okinawa Chatan Resort

（Okinawa）

Hotel

Sponsor Pipeline and Acquisition Track Record from Sponsor

OJR’s Track Record in Property Acquisition from ORI X Group （Note）

Property acquisition totaled 361 billion yen during and after FP23 (Aug. 2013), of which approx. 90% w ere acquired from Sponsor.

Note : The figure for FP23 (Aug. 2013) includes “intervillage OH! MAGARI (Silent Partnership Equity Interest)”. The figure for FP27 (Aug. 2015) includes “ARK Hills South Tower (Preferred Equity Securities)”.The figure for FP36 (Feb. 2020) indicates the figure up to the date of financial announcement on October 17, 2019.

ORIX Group’s Real Estate Segment Assets (Note)

Internal Growth Strategy

Occupancy Rates at the End of each Fiscal Period

17,10011,200

21,700

12,6004,900

13,9007,700

-16,400

-6,000

-18,300 -12,300

-5,300

-13,400 -9,000

12,000

-12,000

-30,000

-20,000

-10,000

0

10,000

20,000

30,000（㎡）

（%)

19Offices -Occupancy Rates and Tenant Turnover-

Achieved rent increase upon tenant turnover for 8 c onsecutive fiscal periods

Include approx. 6,500m2 move-out and move-in by a large tenant at “Shiba 2-chome Daiko Building”

Total acquisitionprice

Share of totalportfolio

Properties Occupancy rate NOI yieldYield after

depreciationAverage

building age

359.9 bil. yen 53.8% 54 99.1% 5.1% 4.3% 18.8 years

Officesas of financial announcement

Assumed move-in Assumed move-outMove-in (only confirmed move-in in and after FP36) Move-out (only confirmed move-out in and after FP36)

Move-in / Move-out Floor Space (above) and Rent Fluctuation Rate by Tenant Turnover (below)

99.2

99.1 98.8 98.8

96

97

98

99

100

FP30Feb. 2017

FP31Aug. 2017

FP32Feb. 2018

FP33Aug. 2018

FP34Feb. 2019

FP35Aug. 2019

FP36Feb. 2020

（Assumption）

FP37Aug. 2020

（Assumption）

Total Offices

7% 6%

19%22%

28%

12%

26%

10%

21%

FP30Feb. 2017

FP31Aug. 2017

FP32Feb. 2018

FP33Aug. 2018

FP34Feb. 2019

FP35Aug. 2019

FP36Feb. 2020

（Assumption）

FP37Aug. 2020

（Assumption）

0%

10%

20%

30%

Rent fluctuationamount upon turnover

for 6 months39 mil. y en 21 mil. y en 119 mil. y en 75 mil. y en 36 mil. y en 58 mil. y en

Note 1 : Figures of move-in / move-out space are rounded to the nearest 100m2.Note 2 : Move-in spaces are forecasted based on confirmed contracts (both increase and decrease in rent renewals), as well as assumptions based on inquiries from tenants and leasing market conditions.

Move-out spaces are forecasted based on confirmed contracts, as well as assumptions based on negotiation status with tenants and leasing market conditions.Note 3: “Rent fluctuation amount upon turnover for 6 months” indicates the difference between the monthly contract rent of new tenants and that of previous tenants over the 6 months. It does not reflect vacant periods or rent-free contracts, and thus is not an amount of contribution to performance in each fiscal period.

Excluding the rent fluctuation at “Shiba 2-chome DaikoBuilding” replaced at same rent level

18,700 20,900 22,80014,200

25,600

51,300

24,800

12,700

700100

2,100

0

1,400

700

700

0

44,600

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FP30Feb. 2017

FP31Aug. 2017

FP32Feb. 2018

FP33Aug. 2018

FP34Feb. 2019

FP35Aug. 2019

FP36Feb. 2020

（Assumption）

FP37Aug. 2020

（Assumption）

Upward renewals (comfirmed) Upward renewals (assumption) Downward renewals (comfirmed) Downward renewals (assumption) Renewals at the same rent Renewals at the same rent (assumption)

(53％)

(1％)

(46％)

20Achieved rent increase upon rent renewals for 12 co nsecutive fiscal periods

Rent Renewal Floor Spaces

Rent Fluctuation Rate upon Rent Renewals

Offices -Rent Renewals-

Note 1 : Figures are rounded to the nearest 100m2.Note 2 : Upward rent renewal and downward rent renewal are forecasted in consideration of the confirmed contracts, as well as the rent gap from the market and negotiation status

Rent renewalspaces

62,200㎡ 75,700㎡ 73,900㎡ 72,500㎡ 64,500㎡ 96,600㎡

6% 5% 6%

10%

8%7%

9%

3%

0%

5%

10%

FP30Feb. 2017

FP31Aug. 2017

FP32Feb. 2018

FP33Aug. 2018

FP34Feb. 2019

FP35Aug. 2019

FP36Feb. 2020

（Assumption）

FP37Aug. 2020

（Assumption）Rent fluctuationamount upon

renewalfor 6 months

39 mil. y en 34 mil. y en 42 mil. y en 38 mil. y en 59 mil. y en 132 mil. y en

Note: “Rent fluctuation amount upon renewal for 6 months” indicates the difference between the monthly contract rent before and after rent renewals over the 6 months. It is not an amount of contribution to performance in each fiscal period.

Floor space with upward rent renewal is on an incre asing trend

Retail Facilities 21

(Note) “Regional” refers to areas other than the Greater Tokyo Area (Tokyo, Kanagawa, Saitama and Chiba pref.). “Non-urban-type retail facilities” refers to retail facilities other than urban-type retail facilities.“Urban-type retail facilities” refers to retail facilities located adjacent to the terminal stations in the Greater Tokyo Area and other major cities.




depreciationAverage

building age

108.9 bil. yen 16.3% 28 99.7% 5.6% 4.8% 11.8 years

Retail Facilitiesas of financial announcement

Urban-typeretail facilities

（Greater Tokyo Area ）42%

Suburban-type retail facilities

（Greater Tokyo Area ）20%

Urban-type retail facilities（Regional）

13%

Suburban-type retail facilities（Regional）

25%

Implementing to dispose regional suburban-type reta il facilities. OJR does not own any GMS.

Morioka Minami Shopping Center Sansa

CROSS GARDEN KAWASAKI

Cross Avenue Harajuku

aune Yurakucho

aune Tenjin

Valor SuzukaShopping Center

Remaining contract terms for urban-type retail faci lity are diversified.Suburban-type retail facilities are stable with lon g term contracts.

Diversification of Remaining Contract Termsbased on actual rent as of the financial announcement on Oct. 17, 2019

Breakdown of Retail Facility Rentsas of the financial announcement on Oct. 17, 2019

Within 1 year1%

Within 1-3 years20%

Within 3-5 years

4%More than 5 years

76%

Suburban-type retail facilities

Within 1 year14%

Within 1-3 years29%

Within 3-5 years30%

More than 5 years

26%

Urban-type retail facilities

Change in Rent upon Turnover based on rooms (left axis) and Rent Fluctuation Rate (right axis)

Achieved steady rent increases upon turnover

22

Renewed contract with a major tenant at Sakai Logis tics Center North Building and continue to be stabl y managed

Residential Properties and Logistics Facilities




depreciationAverage

building age

68.2 bil. yen 10.2% 14 95.9% 5.7% 4.5% 12.4 years

Residential Propertiesas of financial announcement




depreciationAverage

building age

37.1 bil. yen 5.5% 5 100% 5.7% 4.3% 10.9 years

Logistics Facilitiesas of financial announcement

Within 3 min.

53％5 properties

Within 3-5 min.

17％3 properties

Within 5-10 min.

24％4 properties

More than 10 min.

６％2 properties

West Park Tower

IKEBUKURO

Central Crib Roppongi

R-Styles Musashi-Kosugi

Belle Face Osaka

Shinmachi

Belle Face Meguro

Belle Face Kanazawa Kohrinbo

Minutes Walk to Nearest Stationbased on acquisition price

Within 10 min.

94%

Highly convenient locations primarily in central To kyo

Shibaura Island Air

Tower

Belle Face Mishuku

（Reference）Rent fluctuation rate upon renewal during FP35 +1.0%

5.3%

0%

2%

4%

6%

8%

10%

0%

20%

40%

60%

80%

100%

FP30(Feb. 2017)

FP31(Aug. 2017)

FP32(Feb. 2018)

FP33(Aug. 2018)

FP34(Feb. 2019)

FP35(Aug. 2019)

Upward Downward Same rent Rent fluctuation rate

23Hotels and Others

� Renovated 55 guest rooms on the upper 2 floors in March 2019 to maintain competitiveness on the face of difficult operating environment due to increased competition in the area.

� Increased ADR and occupancy by above 10% and RevPAR by approx. 30% yoy for 5 months post renovation at renovated floors .

Hotel Nikko Himeji

Ref: OJR’s rental income: Fixed rent of 525milion yen per period + Variable rent

<Variable rent calculation period>i. Calculated based on the hotel sales for the period from October of the preceding year to March

of the current year.ii. Calculated based on the hotel sales for the period from April to September of the current year.

Hotel Universal Port (HUP): Performed slightly unde r expectations




depreciationAverage

building age

94.4 bil. yen 14.1% 10 99.8% 5.3% 4.1% 20.7 years

Hotels and Othersas of financial announcement

Note: Hotel type chart excludes “TAKANAWA DUPLEX C’s” and “GOOD TIME LIVING Shin-urayasu”.Both charts are based on acquisition price as of the end of Aug. 2019.

Business hotels27％

Theme park official hotels67％

Full-service hotels 5 ％

Within 5-10 min.

5％

Within 3-5 min.

17％

Within 3 min.78％

Minutes Walk to Nearest Station(Business hotels and full-service hotels)

Hotel Universal Port

Cross Gate

HOTEL LiVEMAXNAGOYA SAKAE-EAST

Richmond Hotel Yamagata Ekimae

Tokyo Bay Maihama Hotel First Resort

Almost 70% are theme park official hotels where sta ble demand is expected.95% of our business and full-service hotels are con veniently located within 5 minutes walk from stations.

Enhancement for the future

Hotel Universal Port

Girly Room

Hotel type

(million yen)

Oct. 1, 2018 to Mar. 31, 2019(Actual)

Initial estimated range

Hotel sales 2,827 2,941 to 3,276

↓ ↓

FP35 (Aug. 2019) Initial estimated range

Rent 997 1,020 to 1,087

� Renovated 52 rooms on the upper floor in March 2019.

� Increased ADR and occupancy yoyfor 5 months post renovation at these rooms.

� Particularly increased ADR by approx. 20%, occupancy by nearly 10% and RevPAR by approx. 30% at 10 rooms renovated to attract young women (“girly room”).

� Plans to renovate additional 52 rooms prior to the new opening of “SUPER NINTENDO WORLD™ “at USJ by 2020.

Financial Strategy

Refinancing results of 11,000 mil. yen

since FP35 to financial announcement on Oct. 17, 20 19 (Note) Pre-refinance Post-refinance

Average debt maturity 5.6 years 8.4 years

Average interest rate 1.31% 0.33%

0

10,000

20,000

30,000

40,000

50,000

FP35Aug.2019

FP36Feb.2020

FP37Aug.2020

FP38Feb.2021

FP39Aug.2021

FP40Feb.2022

FP41Aug.2022

FP42Feb.2023

FP43Aug.2023

FP44Feb.2024

FP45Aug.2024

FP46Feb.2025

FP47Aug.2025

FP48Feb.2026

FP49Aug.2026

FP50Feb.2027

FP51Aug.2027

FP52Feb.2028

FP53Aug.2028

FP54Feb.2029

FP55Aug.2029

FP56Feb.2030

Existing interest-bearing liabilities Refinancing

274,117Average duration to maturity︓3.9 yearInterest-bearing liabilities︓295,037 million yen

Interest-bearing liabilities due for repayment up to Oct. 17, 2019

Commitment line: 40.5 billion yen

Early repayment of short-term debts in FP35 (Aug.2019) through issuance of green bonds

Lowered interest rate while maintaining financial s tability

Financial Strategy I

Financing Costs and Average Duration to Maturity

Maturity and Duration of Interest-Bearing Liabiliti es as of financial announcement on Oct. 17, 2019

3.1

3.4

3.63.7 3.7

4.44.2

4.4

3.8

4.2 4.3 4.2 4.13.9 3.9

1.85

1.601.52 1.47

1.38 1.311.20

1.09 1.03 1.01 0.99 0.96 0.94 0.88

1.48 1.30

1.24 1.19 1.13 1.03 0.98

0.87 0.80 0.84 0.81 0.80 0.78 0.71 0.5

1.0

1.5

2.0

2.0

2.5

3.0

3.5

4.0

4.5

5.0

FP22Feb. 2013

FP23Aug. 2013

FP24Feb. 2014

FP25Aug. 2014

FP26Feb. 2015

FP27Aug. 2015

FP28Feb. 2016

FP29Aug. 2016

FP30Feb. 2017

FP31Aug. 2017

FP32Feb. 2018

FP33Aug. 2018

FP34Feb. 2019

FP35Aug. 2019

As of financialannouncement on

Oct. 17, 2019

Average duration to maturity (left axis) Average funding cost (right axis) Average interest rate (right axis)(year) （％）

Note: Includes fixed rate refinancing only.

(million yen)

25

0.96 0.67 0.87 0.49 0.82 0.84 0.73 0.53 0.80 0.52 0.79 0.65 0.62 0.55 0.61 0.75 0.63 0.58 0.81 0.50 0.37Average interest rates

(%)

Financial Strategy II

Trends on LTV based on Total Assets and Borrowing C apacity (up to LTV of 50%)

Financial Indicators as of financial announcement on Oct. 17, 2019Credit Ratings

Maintaining low LTV level and borrowing capacity to enable swift property acquisition

90,380

50.3

48.3 48.9

46.7 47.1 46.0 45.9 45.5 46.3

43.6 43.7

42.8 42.7 43.1 43.4

0

25,000

50,000

75,000

100,000

125,000

42

44

46

48

50

52

FP22Feb. 2013

FP23Aug. 2013

FP24Feb. 2014

FP25Aug. 2014

FP26Feb. 2015

FP27Aug. 2015

FP28Feb. 2016

FP29Aug. 2016

FP30Feb. 2017

FP31Aug. 2017

FP32Feb. 2018

FP33Aug. 2018

FP34Feb. 2019

FP35Aug. 2019

As of financialannouncement

Borrowing capacity (up to LTV of 50%)(right axis) LTV based on total assets (left axis)（％）（million yen）

26

Interest-bearing liabilities 291,917 million yen 295,037 million yen

LTVbased on total assets

43.1 ％ 43.4 ％

LTVbased on unitholders’ capital

46.5 ％ 46.8 ％

Average interest rate 0.71 ％ 0.70 ％

Average funding cost 0.88 ％ -

Fixed-rate debt ratio 90.2 ％ 88.9 ％

Average duration to maturity 3.9 years 3.9 years

End of FP 35Aug. 31, 2019

As of financialannouncement on

Oct. 17, 2019R&I Issuer rating : AA - (Stable)

JCR Long-term issuer rating : AA (Stable)

Financial institution Balance(million yen)

Sumitomo Mitsui Trust Bank, Limited 50,395 18.3 %

MUFG Bank, Ltd. 48,555 17.6 %

Sumitomo Mitsui Banking Corporation 32,788 11.9 %

Mizuho Bank, Ltd. 27,699 10.1 %

Development Bank of Japan Inc. 22,440 8.1 %

The Norinchukin Bank 13,850 5.0 %

Shinsei Bank, Limited 12,760 4.6 %

Resona Bank, Limited 11,860 4.3 %

Mizuho Trust & Banking Co., Ltd. 10,840 3.9 %

The Bank of Fukuoka, Ltd. 7,400 2.7 %

Aozora Bank, Ltd. 4,550 1.7 %

THE NISHI-NIPPON CITY BANK, LTD. 3,800 1.4 %

THE SHIZUOKA BANK, LTD. 3,000 1.1 %

The 77 Bank, Ltd. 3,000 1.1 %

National Mutual Insurance Federation of Agricultural Cooperatives 3,000 1.1 %

The Daishi Bank, Ltd. 3,000 1.1 %

The Shinkumi Federation Bank 2,500 0.9 %

The Yamaguchi Bank, Ltd. 2,000 0.7 %

SUMITOMO LIFE INSURANCE COMPANY 1,500 0.5 %

Mitsui Sumitomo Insurance Company, Limited 1,500 0.5 %

ORIX Bank Corporation 1,000 0.4 %

The Kagawa Bank, Ltd. 1,000 0.4 %

Taiyo Life Insurance Company 1,000 0.4 %

THE CHUGOKU BANK, LTD. 1,000 0.4 %

Tokio Marine & Nichido Fire Insurance Co., Ltd. 1,000 0.4 %

The Hyakugo Bank, Ltd. 1,000 0.4 %

THE HIROSHIMA BANK, LTD. 1,000 0.4 %

The Minato Bank, Ltd. 800 0.3 %

Kiraboshi Bank, Ltd. 500 0.2 %

Meiji Yasuda Life Insurance Company 500 0.2 %

THE SHIMANE BANK, LTD. 300 0.1 %

Ratio

Debt Lenders: 31 institutions / 275,537 million yen in total

Investment Corporation BondsTotal: 19,500 million yen

(注)

Financial Strategy IIICommitment Lines

All data are as of financial announcement on Oct. 17, 2019

27

Balance(million yen)

Interestrate

Issue date Period

The 7th unsecured bonds 2,500 1.200% Jan. 20, 2014 10 yrs.

The 9th unsecured bonds 3,000 0.901% Aug. 11, 2014 10 yrs.

The 10th unsecured bonds 2,000 0.886% Dec. 19, 2014 10 yrs.

The 11th unsecured bonds 2,000 0.200% Jul. 18, 2018 4.5 yrs.

The 12th unsecured bonds 3,000 0.550% Jul. 18, 2018 10 yrs.

The 13th unsecured bonds7,000 0.220% Jul. 18, 2019 5 yrs.

Financial institution Maturity dateLine limit

(million yen)

Mizuho Bank, Ltd. Oct. 2, 2022 10,000

Aozora Bank, Ltd. Dec. 29, 2020 7,500

Sumitomo Mitsui Trust Bank, Limited Jul. 29, 2022 6,000

MUFG Bank, Ltd. Jul. 31, 2021 6,000

Sumitomo Mitsui Banking Corporation Feb. 24, 2021 5,000

MUFG Bank, Ltd. Aug. 27, 2022 4,000

Resona Bank, Limited Jul. 31, 2022 2,000

Total 40,500

Drawdown amount 0

Available commitment line 40,500

NEW

“1st OJR Green Bonds” NEW

Initiatives towards ESG

Green bond

Proactive communication with stakeholders

Issued our first green bonds as a part of our ESG initiatives. Enhanced our financial stability through broadening our investor universe, particularly those who are ESG investors.

Initiatives for environment Initiatives for society Initiatives for governance

ESG report

Issued ESG report with the objective of reporting to unitholders and all other stakeholders regarding OJR/OAM’s approach to ESG.

Initiatives towards ESG I -Examples-

OJR Board

Compliance system in asset management company

A solid compliance system is in place to prevent conflict of interest, risk management and legal compliance when the asset management company buys or sells properties.

MembersExecutive Director : 1

Supervisory Director : 3

• Executive Director ︓A person with no conflicted interest in OJR or ORIX Asset Management Corporation is chosen for this position.

• Supervisory Director ︓ Three supervisory directors in order to ensure a high level of independence (attorney, certified accountant, real estate appraiser).

Risk Management

and Compliance Committee

• Composed of the CEO, officer in charge of compliance and external committee member qualified as attorney

• Attendance and approvalfrom external committeemember is required

InvestmentCommittee

• Composed of senior management and external committee member qualified as real estate appraiser

• Attendance and approvalfrom external committee member is required

29

Financial results briefing

2

Investor meetings276 including104 overseas

Events for individual investors

Total 15

Financial results briefings for individual unitholders

Total 4

Property tours for institutional investors

3

Track records for last 12 months as of Oct. 17, 2019

Issue amount 7 billion yen

Issue date July 18, 2019

Maturity date July 18, 2024

Interest rate 0.220% per annum

Investors who declared intention to invest as of July 11, 2019 (in alphabetical order)

- Daitokyo Shinyokumiai- Fujinomiya Shinkin Bank- Hanno-Shinkin Bank- IZAWA METAL Co., Ltd.- NAKATANI KOUN CO., LTD.

- Sumitomo Mitsui Trust Asset Management Co., Ltd.

- THE OITA BANK, LTD.- THE SUGAMO SHINKIN BANK

- The 77 Bank, Ltd.

GRESB Public Disclosure:"A"

Evaluation Property name

★★★★ 【Office】 ARK Hills South Tower

★★★ 【Residential】 West Park Tower IKEBUKURO


★★★★★ 【Office】 Lunar Sendai

★★★★

【Logistics】 Toda Logistics Center

【Logistics】 Iwatsuki Logistics Center

【Logistics】 Sakai Logistics Center North Building

【Logistics】 Komaki Logistics Center

★★★

【Office】 Shiba 2-chome Daiko Building

【Office】 ORIX Real Estate Nishi Shinjuku Building

【Office】 ORIX Nagoya Nishiki Building

【Office】 ORE Nishiki 2-chome Bldg.

★★ 【Hotels and others】 Hotel Universal Port


★★★★★

【Office】 Seafort Square Center Building

【Office】 ORIX Akasaka 2-chome Building

【Office】 Round-Cross Kawasaki

【Office】 Hamamatsu Act Tower (Office and retail areas）

【Retail】 aune Kohoku

【Retail】 aune Makuhari

【Retail】 CROSS GARDEN KAWASAKI

【Retail】 Inter Village OH! MAGARI

【Hotels and others】 Cross Gate（Retail area）

★★★★

【Office】 MG Shirokanedai Building

【Office】 ORIX Meguro Building

【Office】 ORE Omiya Building

【Office】 Nagoya Itochu Building

【Office】 DOJIMA PLAZA BLDG.

【Office】 PRIME SQUARE HIROSE-DORI

【Logistics】 Ichikawa Logistics Center

Promoting acquisition of certifications. The Total of GFA coverage ratio is 60%.

"Green Star"

CASBEE® Certification for Buildings

BELS

DBJ Green Building Certification

Earned the highest "Green Star" in the GRESB Real E state Assessment during past 5 years and the highes t "A" in the GRESB Public Disclosure.

Initiatives towards ESG II -Certifications-

Note: GFA coverage ratio is calculated based on the registered GFA excluding land rights. In the case where the certification was acquired for a specific section of a multi usage facility, we use the entire floor space of this property for the purpose of calculating the coverage ratio.

“4 Star"

GRESB Real Estate Assessment:

GRESB Rating:

30Included in MSCI Japan ESG Select Leaders Index fro m Dec. 2018

Government Pension Investment Fund (GPIF)’s ESG indices for their passive investment.

Appendix

2,200

2,400

2,600

2,800

3,000

3,200

3,400

3,600

3,800

0

100

200

300

400

500

600

700

Driving Growth of Unitholder ValueImproved DPU and liquidity of investment units whil e considering NAV per unit

Stable Growth of DPU Increase of NAV per unit

Enhanced Liquidity of Investment Units

100,000

110,000

120,000

130,000

140,000

150,000

160,000

170,000

180,000

190,000

0

500

1,000

926 yen

180,570 yen3,755 yen

（bil. yen）

（yen）

（yen）（yen）

■DPU ■NAV per unit including internal reserves

（Note）2,352 yen

As of Sep. 30, 2019

651.3 bil. yen

■Market Cap■Internal Reserves per unit

Note: As of the record date on Feb. 28, 2013 and effective Mar. 1, 2013, OJR conducted a one into fifth investment unit split. The above-mentioned DPU, NAV per unit and internal reserves per unit for FP 22 (Feb. 2013) = Actual Distributions, NAV or internal reserve for FP 22 (Feb. 2013) / (5*investment units outstanding at the end of Feb. 2013 (FP 22)). The calculation result is rounded down to the nearest whole number.

47 yen（Note）

104,670 yen

（Note）

Intension is to utilize internal reserves to deal with temporary factors with due consideration of DPU and to contribute to the sustainable growth of unitholder value

32

FP22(Feb. 2013)

FP35(Aug. 2019)

FP22(Feb. 2013)

FP22(Feb. 2013)

Feb. 2013 Sep. 2019

As of financial announcement on

Oct. 17, 2019

As of financial announcement on

Oct. 17, 2019

Target sustainable growth of unitholder value by st rengthening our portfolio, enhancing financial stab ility and diversifying ourgrowth opportunities

Implementation of various strategies supported by o ur 3 strengths; “Diversified REIT ,” “ORIX Synergy” and “Operating Expertise”

Asset

Internal Growth Strategy

Equity

Debt

Financial StrategyExternal Growth Strategy

Swiftproperty

acquisition

Internal reserves by utilizing capital gain

Our Growth Strategy

Strengthen profitability, stability and growth thro ugh operating expertise

Secure acquisition capacity

Operation by utilizing direct property management

Careful selection in properties that can leverage our strengths Various growth drivers

Property acquisition by utilizing various funding sources

Reduce finance costsEnhance financial stability

including improvement in ratings

Property replacement responding to market

environment

Operating ExpertiseORIX Synergy

Stable revenue growth

Risk diversification

Expand investment

opportunities

Nationwide network

Professional expertise

Pipeline support

Direct property management

Fund management expertise （Note）

Effectively use free cash flow for property acquisition and strategic

CAPEX

Sustainable growth of DPU Enhancement of NAV per unit

Enhancement of liquidity

Note : ”Fund management expertise” indicates our expertise in targeting sustainable growth of unitholder value by leveraging our external growth, internal growth and financial strategies.

Diversified REIT

33

Five Period Performance Summary(million yen)

Operating revenues 22,484 22,987 23,754 24,052 24,357

Operating income 10,192 10,610 11,124 10,578 11,731

Ordinary income 8,672 9,131 9,643 9,178 10,378

Net income 8,657 9,116 9,629 9,164 10,174

Unitholders' capital 323,282 323,282 335,757 335,757 335,757

Net assets 334,685 335,145 348,408 347,942 348,493

Total assets 657,898 659,716 673,068 673,908 677,334

Number of investment units outstanding (unit) 2,680, 000 2,680,000 2,760,000 2,760,000 2,760,000

Net assets per unit (yen) 124,883 125,054 126,235 126,066 126,266

Distribution per unit (yen) 3,230 3,299 3,489 3,487 3,755

NAV per unit (yen) (Note1) 161,186 164,272 169,886 174,844 179,859

NAV per unit (yen)

including internal reserves (Note2) 162,210 165,399 170,980 175,771 180,718

Acquisition price 634,841 634,947 668,947 663,532 667,432

Number of properties 110 110 111 109 110

NOI yield 5.1 ％ 5.1 ％ 5.1 ％ 5.1 ％ 5.3 %Yield after depreciation 4.1 ％ 4.1 ％ 4.2 ％ 4.2 ％ 4.4 ％Unrealized gain/loss 108,697 116,968 133,128 146,812 160,654

Funds from operation 12,747 12,885 13,788 13,814 14,337

Depreciation expenses 4,015 3,970 4,084 4,112 4,086

Cost of finance lease of property 74 74 74 76 76

CAPEX 1,615 1,134 929 929 1,894

Free cash flow 2,474 2,910 3,229 3,259 2,267

FP31(Aug. 2017)

FP32(Feb. 2018)

FP33(Aug. 2018)

FP34(Feb. 2019)

FP35(Aug. 2019)

FP31(Aug. 2017)

FP32(Feb. 2018)

FP33(Aug. 2018)

FP34(Feb. 2019)

FP35(Aug. 2019)

Note1:“NAV per unit” refers to the amount calculated by the following formula at any given point in time. (The sum of unitholders’ capital + unrealized gain/loss) / the number of investment units outstanding

Note2:“NAV per unit including internal reserves” refers to the amount calculated by the following formula at any given point in time. (The sum of unitholders’ capital + unrealized gain/loss + internal reserves) / the number of investment units outstanding

34

Performance Forecast Comparison I

Note: “Financing-related costs” is the sum of interest expenses, interest on investment corporation bonds, depreciation of investment corporation bonds issuance costs and funding related expenses.

35（million yen）

iActual result

for FP35(Aug. 2019)

iiForecast at previous

financial announcement for FP35

(Aug. 2019)

i - iiChange

iiiForecast for FP36

(Feb. 2020)

ivForecast at previous


(Feb. 2020)

iii - ivChange

Rental revenues 21,750 21,606 +144 21,890 21,696 +194

Other operating revenues 2,606 2,692 -86 2,461 2,397 +63

Gains on disposition of real estate proterties - - - 469 - +469

Total operating revenue 24,357 24,298 +58 24,820 24,094 +726

Property management fees 2,083 2,026 +57 2,069 1,983 +86

Utility charges 1,761 2,063 -302 1,805 1,881 -76

Property-related taxes 1,854 1,862 -8 1,842 1,862 -20

Repair cost 630 691 -60 774 711 +63

Depreciation expenses 4,086 4,066 +19 4,057 4,036 +21

Others 451 526 -75 521 674 -152

Property-related expense 10,866 11,236 -369 11,070 11,149 -78

Net property income 13,490 13,062 +428 13,750 12,944 +805

Asset management fee 1,502 1,488 +13 1,523 1,498 +24

Administrative service fee 88 90 -2 99 101 -1

Other expense 168 216 -47 250 202 +48

Expenses other than property-related expense 1,759 1,794 -35 1,873 1,802 +70

Total operating expense 12,625 13,031 -405 12,944 12,951 -7

Operating income 11,731 11,267 +463 11,876 11,142 +734

Non-operating income 4 3 +0 3 3 -

Financing-related costs (Note) 1,352 1,367 -14 1,284 1,351 -66

Issuance costs of new units - - - - - -

Other expense 4 7 -2 6 7 -1

Non-operating expense 1,357 1,374 -16 1,291 1,358 -67

Ordinary income 10,378 9,897 +481 10,588 9,786 +801

Extraordinary income or loss -189 -337 +148 -148 - -148

Income before income taxes 10,189 9,560 +629 10,440 9,786 +653

Provision for income taxes 14 17 -2 17 17 -

Net income 10,174 9,543 +631 10,423 9,769 +653

Reserving internal reserves - - - 185 - +185

Allocation of internal reserve 189 337 -148 - - -

Distributable profit 10,365 9,881 +483 10,240 9,770 +469

Number of investment units outstanding (unit) 2,760,000 2,760,000 - 2,760,000 2,760,000 -

DPU (yen) 3,755 3,580 +175 3,710 3,540 +170

CAPEX 1,894 1,958 -63 1,374 1,664 -290

Allocated internal reserves to offset earthquake restoration expense at “intervillage OH! MAGARI”

Allocate gain from disposition to offset earthquake restoration expense at “intervillage OH! MAGARI”

Performance Forecast Comparison II 36

Note1: “Existing operation” refers to the operation in properties owned as of the end of the FP34 (Feb. 2019).Note2: “Total income or loss other than net property income excluding extraordinary income or loss” is the sum of expenses other than property-related expenses, non-operating profit and loss, and provision for income taxes.Note3: “Total income or loss other than net property income” is the sum of expenses other than property-related expenses, non-operating profit and loss, extraordinary income or loss and provision for income taxes.

Reference: Breakdown of previous page

1. Existing operation (Note1) （million yen）

iActual result

for FP35(Aug. 2019)



(Aug. 2019)

i - iiChange


(Feb. 2020)



(Feb. 2020)

iii - ivChange

Rental revenues 21,732 21,606 +125 21,806 21,696 +109

Other operating revenues 2,603 2,692 -88 2,418 2,397 +20

Gains on disposition of real estate proterties - - - - - -

Total operating revenue 24,335 24,298 +36 24,224 24,094 +130

Property-related expense 10,856 11,236 -380 11,016 11,149 -132

Property-related taxes 1,854 1,862 -8 1,854 1,862 -8

Depreciation expenses 4,081 4,066 +14 4,046 4,036 +9

Net property income 13,479 13,062 +416 13,208 12,944 +263

Extraordinary income or loss -189 -337 +148 -148 - -148

-3,126 -3,182 +56 -3,144 -3,175 +31

Net income 10,164 9,543 +621 9,916 9,769 +146

Allocation of internal reserve 189 337 -148 - - -

Distributable profit 10,354 9,881 +473 9,918 9,770 +147

Number of investment units outstanding (unit) 2,760,000 2,760,000 - 2,760,000 2,760,000 -

DPU (yen) 3,751 3,580 +171 3,593 3,540 +53

Total income or loss other than net property income excluding

extraordinary income or loss （Note2）

Increase in rental revenues as a result of improvem ent in rental conditions and decrease in move-out floor sp ace

Decrease in utility charges △305（Change of electricity providers and decrease in fue l cost adjustment ）

Decrease in utility charges △111（Review of cost to reflect decrease in fuel cost adj ustment ）

2. The impact from 3 properties acqusition and 2 pro perties disposition （million yen）

iActual result

for FP35(Aug. 2019)



(Aug. 2019)

i - iiChange


(Feb. 2020)



(Feb. 2020)

iii - ivChange

Rental revenues 18 - +18 84 - +84

Other operating revenues 2 - +2 42 - +42

Gains on disposition of real estate proterties - - - 469 - +469

Total operating revenue 21 - +21 596 - +596

Property-related expense 10 - +10 54 - +54

Property-related taxes 0 - +0 -11 - -11

Depreciation expenses 4 - +4 11 - +11

Net property income 11 - +11 542 - +542

Total income or loss other than net property income (Note3) -0 - -0 -34 - -34

Net income 10 - +10 507 - +507

Reserving internal reserves - - - 185 - +185

Distributable profit 10 - +10 322 - +322

Number of investment units outstanding (unit) - - - - - -

DPU (yen) 4 - +4 117 - +117

Gain from disposition of "Okayama Kume Retail Facil ity" +415Gain from disposition of "KN Jiyugaoka Plaza(49%) " +5 3

Period-over-Period Performance Comparison I 37（million yen）

iActual result

for FP34(Feb. 2019)

ii - iChange

ⅱActual result

for FP35(Aug. 2019)

iii - iiChange


(Feb. 2020)

iv - iiiChange

ivForecast for FP37

(Aug. 2020)

Rental revenues 21,594 +156 21,750 +139 21,890 +27 21,917

Other operating revenues 2,457 +149 2,606 -145 2,461 +55 2,516

Gains on disposition of real estate proterties - - - +469 469 -410 58

Total operating revenue 24,052 +305 24,357 +463 24,820 -328 24,492

Property management fees 2,130 -47 2,083 -13 2,069 +4 2,074

Utility charges 1,760 +1 1,761 +43 1,805 +27 1,832

Property-related taxes 1,803 +50 1,854 -12 1,842 +38 1,880

Repair cost 910 -280 630 +144 774 -6 767

Depreciation expenses 4,112 -26 4,086 -28 4,057 -31 4,025

Others 436 +14 451 +70 521 +61 583

Property-related expense 11,154 -288 10,866 +204 11,070 +93 11,164

Loss from property disposition 460 -460 - - - - -

Net property income 12,436 +1,054 13,490 +259 13,750 -421 13,328

Asset management fee 1,502 +0 1,502 +21 1,523 -2 1,520

Administrative service fee 170 -81 88 +11 99 -9 90

Other expense 185 -16 168 +81 250 -42 208

Expenses other than property-related expense 1,857 -98 1,759 +114 1,873 -54 1,818

Total operating expense 13,473 -847 12,625 +318 12,944 +38 12,983

Operating income 10,578 +1,152 11,731 +145 11,876 -367 11,509

Non-operating income 7 -3 4 -0 3 - 3

Financing-related costs (Note) 1,401 -48 1,352 -67 1,284 +7 1,292

Issuance costs of new units - - - - - - -

Other expense 6 -1 4 +1 6 +1 7

Non-operating expense 1,407 -49 1,357 -66 1,291 +8 1,299

Ordinary income 9,178 +1,199 10,378 +210 10,588 -375 10,213

Extraordinary income or loss - -189 -189 +41 -148 +148 -

Income before income taxes 9,178 +1,010 10,189 +251 10,440 -227 10,213

Provision for income taxes 14 -0 14 +2 17 - 17

Net income 9,164 +1,010 10,174 +248 10,423 -227 10,196

Reserving internal reserves - - - +185 185 -63 122

Allocation of internal reserve 460 -271 189 -189 - - -

Distributable profit 9,625 +739 10,365 -125 10,240 -165 10,074

Number of investment units outstanding (unit) 2,760,000 - 2,760,000 - 2,760,000 - 2,760,000

DPU (yen) 3,487 +268 3,755 -45 3,710 -60 3,650

CAPEX 929 +964 1,894 -520 1,374 +170 1,545

Allocated internal reserves to offet earthquake restoration expense at “intervillage OH! MAGARI”

Guest room renovation at "Hotel Universal Port", "To kyo Bay Maihama Hotel First Resort" and "Hotel Nikko Hi meji"

Allocate gain from disposition to offset earthquake restoration expense at “intervillage OH! MAGARI”

Note: “Financing-related costs” is the sum of interest expenses, interest on investment corporation bonds, depreciation of investment corporation bonds issuance costs and funding related expenses.

Period-over-Period Performance Comparison II 38

Reference: Breakdown of previous page

1. Existing operation (Note1)

iActual result

for FP34(Feb. 2019)

ii - iChange

ⅱActual result

for FP35(Aug. 2019)

iii - iiChange


(Feb. 2020)

iv - iiiChange

ivForecast for FP37

(Aug. 2020)

Rental revenues 21,594 +137 21,732 +74 21,806 +7 21,813

Other operating revenues 2,457 +146 2,603 -185 2,418 +42 2,460

Gains on disposition of real estate proterties - - - - - - -

Total operating revenue 24,052 +283 24,335 -111 24,224 +49 24,273

Property-related expense 11,154 -298 10,856 +160 11,016 +67 11,084

Property-related taxes 1,803 +50 1,854 -0 1,854 +21 1,875

Depreciation expenses 4,112 -31 4,081 -35 4,046 -28 4,018

Loss from property disposition 460 -460 - - - - -

Net property income 12,436 +1,043 13,479 -271 13,208 -18 13,189

Extraordinary income or loss - -189 -189 +41 -148 +148 -

-3,271 +145 -3,126 -17 -3,144 +55 -3,088

Net income 9,164 +1,000 10,164 -248 9,916 +184 10,100

Allocation of internal reserve 460 -271 189 -189 - - -

Distributable profit 9,625 +729 10,354 -436 9,918 +184 10,102

Number of investment units outstanding (unit) 2,760,000 - 2,760,000 - 2,760,000 - 2,760,000

DPU (yen) 3,487 +264 3,751 -158 3,593 +67 3,660

Total income or loss other than net property income excluding

extraordinary income or loss （Note2）

Normalization of Hotel Universal Port's variable re nt +200Absence of rent for 3 properties disposed during FP3 4 △217Existing properties +154

Increase of property-related tax due to asset-evalu ation +29Property-related tax for "Hotel Universal Port" +45Decrease due to 3 properties disposition during FP34 △24

Decrease in repair cost △280

Absence of one-off income such as insurance income △128

Increase in repair cost +142

Increase in one-off income such as insurance income +93

Increase of property-related tax due to asset-evaluation +21

2. The impact from 3 properties acqusition and 2 pro perties dispositioni

Actual resultfor FP34

(Feb. 2019)

ii - iChange

ⅱActual result

for FP35(Aug. 2019)

iii - iiChange


(Feb. 2020)

iv - iiiChange

ivForecast for FP37

(Aug. 2020)

Rental revenues - +18 18 +65 84 +20 104

Other operating revenues - +2 2 +39 42 +12 55

Gains on disposition of real estate proterties - - - +469 469 -410 58

Total operating revenue - +21 21 +574 596 -377 218

Property-related expense - +10 10 +44 54 +25 79

Property-related taxes - +0 0 -11 -11 +17 5

Depreciation expenses - +4 4 +6 11 -3 7

Net property income - +11 11 +530 542 -403 138

Total income or loss other than net property income (Note3) - -0 -0 -33 -34 -9 -43

Net income - +10 10 +497 507 -412 95

Reserving internal reserves - - - +185 185 -63 122

Distributable profit - +10 10 +312 322 -349 -26

Number of investment units outstanding (unit) - - - - - - -

DPU (yen) - +4 4 +113 117 -127 -10

Gain from disposition of "Okayama Kume Retaill Facil ity" +415Gain from disposition of "KN jiyugaoka Building （49％）" +53

Gain from disposition of "KN jiyugaoka Building （51％）"

Note1: “Existing operation” refers to the operation in properties owned as of the end of the FP34 (Feb. 2019).Note2: “Total income or loss other than net property income excluding extraordinary income or loss” is the sum of expenses other than property-related expenses, non-operating profit and loss, and provision for income taxes.Note3: “Total income or loss other than net property income” is the sum of expenses other than property-related expenses, non-operating profit and loss, extraordinary income or loss and provision for income taxes.

Portfolio Summary IAs of financial announcement on Oct. 17, 2019

39

Aoyama Suncrest Building Nov. 1979 10,076 1.5

Round-Cross Ichi-bancho Mar. 1994 3,526 0.5

Round-Cross Nishi Shinjuku Jun. 1999 2,650 0.4

DT Gaien Feb. 1990 2,430 0.4

Yoyogi Forest Building Jun. 1987 1,406 0.2

Round-Cross Akasaka Oct. 1978 2,624 0.4

Round-Cross Mita May 1990 1,748 0.3

Round-Cross Shiba Daimon Oct. 1988 2,195 0.3

Round-Cross Tsukiji May 1992 3,378 0.5

Shiba 2-chome Daiko Building Jan. 2003 7,500 1.1

Aoyama 246 Building Nov. 1990 5,200 0.8

Round-Cross Shinjuku Oct. 2005 8,020 1.2

Seafort Square Center Building Jun. 1992 18,000 2.7

ORIX Akasaka 2-chome Building Nov. 2004 21,860 3.3

Round-Cross Shinjuku 5-chome Oct. 2006 4,500 0.7

Nihonbashi Honcho 1-chome Building Mar. 2006 10,500 1.6

Round-Cross Shibuya Mar. 2007 3,500 0.5

ORIX Suidobashi Building Oct. 2005 3,000 0.4

ORIX Shinagawa Building Jun. 2006 15,200 2.3

ORIX Real Estate Nishi Shinjuku Building Apr. 2007 13,600 2.0

Round-Cross Tamachi Jan. 1986 6,730 1.0

MG Shirokanedai Building May 1998 8,500 1.3

SHIBUYA PINE Bldg. Oct. 1991 3,400 0.5

MG Ichigaya Building Jan. 2008 3,100 0.5

Round-Cross Ginza 2-chome Aug. 2007 5,200 0.8

ARK Hills South Tower Jul. 2013 22,000 3.3

Round-Cross Akihabara Feb. 2004 4,202 0.6

Gaien Nishi-dori Building Dec. 1991 9,000 1.3

Round-Cross Roppongi May 2009 12,400 1.9

TOKYU REIT Akasaka Hinokicho Building Aug. 1984 2,352 0.4

Type Area Property CompletionAcquisition

price(million yen)

Offices6 Central

Tokyo Wards

Ratio (%)

Carrot Tower Nov. 1996 5,479 0.8

Beside Kiba Aug. 1991 2,450 0.4

ORIX Ikebukuro Building Jul. 2002 9,577 1.4

KN Jiyugaoka Plaza Dec. 2001 1,586 0.2

ORIX Meguro Building Jan. 1996 6,350 0.9

Akihabara Business Center Oct. 2009 5,060 0.8

Neo City Mitaka Sep. 1993 2,200 0.3

Round-Cross Kawasaki Jan. 1993 4,130 0.6

Omiya Miyacho Building Sep. 2008 4,400 0.7

Omiya Shimocho 1-chome Building Aug. 2009 3,750 0.6

ORE Omiya Building Jul. 1987 7,030 1.1

Nagoya Itochu Building Feb. 1981 4,500 0.7

ORIX Koraibashi Building Jul. 2004 5,560 0.8

Lunar Sendai Feb. 1998 8,500 1.3

ORIX Nagoya Nishiki Building Jan. 2007 12,500 1.9

ORE Sapporo Building Nov. 2008 4,250 0.6

ORIX Kobe Sannomiya Building Sep. 2009 3,800 0.6

ORE Nishiki 2-chome Bldg. Aug. 2012 10,900 1.6

DOJIMA PLAZA BLDG. Feb. 2010 9,500 1.4

PRIME SQUARE HIROSE-DORI May 2009 7,280 1.1

Hamamatsu Act Tower Aug. 1994 11,800 1.8

ORIX Yodoyabashi Bldg. Mar. 1991 5,012 0.7

SAPPORO BRICK CUBE May 1981 5,200 0.8

Round-Cross Kagoshima Nov. 2007 1,300 0.2

359,912 53.8

Type

RemainingTokyo Wards

Other Parts ofthe Greater Tokyo

Area

Other Areas

Area Property CompletionAcquisition

price(million yen)

Ratio (%)

Total of Offices

Note1:“Ratio” refers to the percentage in acquisition price of each property under management to the total acquisition price.Note2:Figures are rounded to the first decimal place for the “Ratio.” Totals for the “Ratio” may not tally due to this rounding.Note3:OJR changed its property name from “ORIX Shiba 2-chome Building” to “Shiba 2-chome Daiko Building” on Oct. 1, 2019.Note4:OJR acquired a 49% co-ownership interest in the TOKYU REIT Akasaka Hinokicho Building on October 1, 2019, and plans to

acquire the remaining 51% co-ownership interest on March 4, 2020. Note5:OJR disposed a 49% co-ownership interest in KN Jiyugaoka Plaza on October 1, 2019, and plans to dispose the remaining

51% co-ownership interest on March 4, 2020.

(Note5)

(Note3)

(Note4)

Portfolio Summary IIAs of financial announcement on Oct. 17, 2019

Note1:“Ratio” refers to the percentage in acquisition price of each property under management to the total acquisition price.Note2:Figures are rounded to the first decimal place for the “Ratio.” Totals for the “Ratio” may not tally due to this rounding.Note3:OJR changed its property name from “SUNROUTE PLAZA TOKYO” to “Tokyo Bay Maihama Hotel First Resort” on

Oct. 1, 2019.

40

Nihon Jisho Minami Aoyama Building Nov. 1997 2,548 0.4

CUBE Daikanyama Jan. 2003 2,435 0.4

aune Yurakucho Feb. 2007 9,900 1.5

Cross Avenue Harajuku Jun. 2010 4,815 0.7

J-ONE SQUARE Feb. 2007 1,510 0.2

JouLe SHIBUYA May 2008 7,550 1.1

SO-CAL LINK OMOTESANDO Apr. 2014 2,300 0.3

Kita Aoyama Building Apr. 2008 900 0.1


aune Ikebukuro Aug. 2010 6,410 1.0

aune Kohoku Mar. 2008 4,000 0.6

aune Makuhari Feb. 2008 3,600 0.5

Maruetsu Sagamino Nov. 2005 2,350 0.4

CROSS GARDEN KAWASAKI Feb. 2011 12,950 1.9

Tecc Land Totsuka (Land right) - 6,020 0.9

Clio Fujisawaekimae Feb. 2005 3,900 0.6

Kobe Momoyamadai Shopping Center (Land right) - 1,224 0.2

Home Center Musashi Sendai Izumi (Land right) - 2,350 0.4

aune Sapporo Ekimae Jul. 1994 1,900 0.3

Morioka Minami Shopping Center Sansa Nov. 2006 2,800 0.4

AEON TOWN Sendai-Izumiosawa (Land right) - 3,510 0.5

intervillage OH! MAGARI Jun. 2008 5,183 0.8

Valor Suzuka Shopping Center Apr. 2008 3,200 0.5

aune Sendai Nov. 1987 2,000 0.3

Friend Town Fukaebashi (Land right) - 2,400 0.4

KONAMI SPORTS CLUB KORIEN Nov. 2002 1,600 0.2

aune Tenjin Aug. 2009 4,550 0.7

Sendai Minamimachidori Building Nov. 2017 3,900 0.6

Felicita Sanjo Kiyamachi Jun. 2007 3,120 0.5

108,925 16.3

Type Area

RetailFacilities

Ratio (%)Property CompletionAcquisition

price(million yen)

6 CentralTokyo Wards


Area

Other Areas

Total of Retail Facilities

We Will Hatchobori Mar. 2008 2,370 0.4

Shibaura Island Air Tower Mar. 2007 6,030 0.9

Belle Face Togoshi Statio Nov. 2009 2,642 0.4

Belle Face Meguro Feb. 2010 3,330 0.5

Central Crib Roppongi Jan. 2006 7,493 1.1

Belle Face Kamata Nov. 2006 3,550 0.5

Belle Face Hongo Yumicho Nov. 2006 3,340 0.5

Belle Face Mishuku Jun. 2007 2,000 0.3

West Park Tower IKEBUKURO Dec. 2006 20,500 3.1

Belle Face Higashijujo Dec. 2007 3,000 0.4


AreaR-Styles Musashi-Kosugi Sep. 2006 4,433 0.7

Belle Face Osaka Shinmachi Feb. 2008 3,684 0.6

Belle Face Amagasaki Feb. 2009 3,440 0.5

Belle Face Kanazawa Kohrinbo Oct. 2006 2,410 0.4

68,222 10.2

Toda Logistics Center Mar. 2005 9,600 1.4

Ichikawa Logistics Center Jun. 2008 8,300 1.2

Iwatsuki Logistics Center Apr. 2013 6,300 0.9

Sakai Logistics Center North Building Jul. 2009 10,200 1.5

Komaki Logistics Center Sep. 2010 2,700 0.4

37,100 5.5


TAKANAWA DUPLEX C's Aug. 2005 2,830 0.4

Cross Gate Sep. 2000 15,040 2.2

GOOD TIME LIVING Shin-urayasu Oct. 2006 1,550 0.2

Tokyo Bay Maihama Hotel First Resort Jun. 1986 26,800 4.0

VIA INN SHINSAIBASHI BLDG. Mar. 2011 3,100 0.5

HOTEL KEIHAN SAPPORO Apr. 2009 2,550 0.4

Richmond Hotel Yamagata Ekimae Dec. 2007 2,300 0.3

Hotel Nikko Himeji Sep. 1990 4,800 0.7

HOTEL LiVEMAX NAGOYA SAKAE-EAST Sep. 2017 1,500 0.2

Hotel Universal Port May 2005 34,000 5.1

94,470 14.1

668,630 100.0



Area

ResidentialProperties

Type Ratio (%)Property CompletionAcquisition

price(million yen)

Total of Hotels and Others

Total


Area

Other Areas


Area

Other Areas

Total of Logistics Facilities

Other Areas

Total of Residential Properties

LogisticsFacilities

Hotels andOthers

(Note3)

Portfolio MapAs of financial announcement on Oct. 17, 2019

41

Portfolio Growth 42

Active asset reshuffle in view of market condition

99

668

-124

-200

-100

0

100

200

300

400

500

600

700

（billion yen）Offices Retail Facilities Residential Properties

Logistics Facilities Hotels and Others Dispositions

End of FP1

（Aug. 2002)

As of f inancial announcement

on Oct. 17,2019

Note: The above chart indicates the acquisition price of properties owned and the total acquisition price of disposed properties as of each fiscal period.

Property Name Area BuyerDisposition

date

Acquisition price

(million yen)

Disposition price

(million yen)

Book value(million yen)

（Note 2）

Estimated gain/loss of disposition（million yen）

OfficeKN Jiyugaoka

Plaza

Remaining Tokyo Wards

(Meguro-ku, Tokyo)

TOKYU REIT, Inc.

Oct. 1, 2019 and

Mar. 4, 2020(Note1)

3,110

Total 3,160

Ⅰ︓ 1,548Ⅱ︓ 1,611

（Note 1）

Ⅰ︓ 1,483Ⅱ︓ 1,541

Ⅰ︓ 53Ⅱ︓ 58

Retail Facility

Okayama KumeRetail Facility

Other Areas(Okayama-shi,

Okayama)

JALCO Co., Ltd. Sep. 26, 2019 2,750 2,750 2,289 415

Note 1: To be disposed over the following two periodsⅠ︓Oct. 1, 2019 1,548 million yen (The co-ownership interest of 49% in the property)Ⅱ︓Mar. 4, 2020 1,611 million yen (The co-ownership interest of 51% in the property)

Note 2: Book value is and estimate as of each transaction date. Estimated gain/loss on transfer is pro forma amount based on the book value and assumed transfer expenses as of the same date. The amounts are subject to change.

Disposed Properties during and after FP35（Aug. 2019）Disposition of properties in view of future competitiveness, profitability and market conditions

43

9.011.2

13.3 15.1 16.218.3 19.8 21.4

23.926.1

0

5

10

15

20

25

30

FP26Feb. 2015 End

FP27Aug. 2015 End

FP28Feb. 2016 End

FP29Aug. 2016 End

FP30Feb. 2017 End

FP31Aug. 2017 End

FP32Feb. 2018 End

FP33Aug. 2018 End

FP34Feb. 2019 End

FP35Aug. 2019 End

（％）Unrealized gain/loss ratio

Overview of Appraisal Value

Appraisal value by asset type (Note 3)

FP26Feb. 2015 End

FP27Aug. 2015 End

FP28Feb. 2016 End

FP29Aug. 2016 End

FP30Feb. 2017 End

FP31Aug. 2017 End

FP32Feb. 2018 End

FP33Aug. 2018 End

FP34Feb. 2019 End

FP35Aug. 2019 End

Properties96 96 102 106 109 110 110 111 109 110

Appraisal value(billion yen) 515.3 538.2 594.2 628.7 679.0 703.1 708.7 755 .8 760.9 776.4

Book value(billion yen) 472.8 483.9 524.3 546.0 584.4 594.4 591.8 622 .7 614.1 615.7

Unrealized gain/loss

(billion yen) (Note1) 42.5 54.2 69.8 82.6 94.5 108.6 116.9 133.1 146.8 160.6Unrealized gain/loss ratio

(%) (Note2) 9.0 11.2 13.3 15.1 16.2 18.3 19.8 21.4 23.9 26.1

Offices 52 321,428 402,820 4.0% 81,391 9,170 2.3% -0.1% 10,524

Retail Facilities 22 84,040 109,480 4.2% 25,439 -660 -0.6% -0.0% -311

Residential Properties 14 61,547 82,860 4.1% 21,312 1,600 2.0% -0.1% 2,095

Logistics Facilities 5 30,134 44,960 4.5% 14,825 -80 -0.2% 0.0% 326

Hotels and Others 10 88,818 101,860 4.3% 13,041 910 0.9% -0.1% 584Total：excluding properties not appraised by the direct ca pitalization method(Note 4) and acquired in and after FP35 (Aug. 2019) 103 585,969 741,980 4.1% 156,010 10,940 1.5% -0.1% 13,219

<Reference>Properties not appraised by the direct capitalizati on method (Note 4) 6 25,858 30,330 - 4,471 - - - -

Properties acquired in FP35 (Aug. 2019) 1 3,946 4,120 4.3% 173 - - - -

Properties owned as of the end of FP35 (Aug. 2019) 110 615,775 776,430 - 160,654 - - - -

Property type Properties

FP35 (Aug. 2019) Change from FP34 (Feb. 2019)

Cap RateChange of

Appraisal Ratio

Change of

Cap Rate

Book Value

(million y en)

Appraisal

Value

(million y en)

Unrealized Gain/Loss

(million y en)

Change of

Appraisal(million y en)

Change of Unrealized

Gain/Loss(million y en)

Note 1: Unrealized gain/loss is calculated by subtracting the book value at each given point in time from the appraisal value at the same time. Note 2: Unrealized gain/loss ratio is calculated in dividing the unrealized gain/loss at each given point in time by the book value at the same time. Note 3: Figures for “Cap Rate” in “Appraisal value by asset type” are calculated on a weighted average basis according to appraisal values and rounded to the first decimal place. Note 4: The term refers to “Aoyama Suncrest Building”, “Tecc Land Totsuka (Land right)”, “Kobe Momoyamadai Shopping Center (Land right)” , “Home Center Musashi Sendai Izumi (Land right)”, “AEON TOWN

Sendai-Izumiosawa (Land right)” and “Friend Town Fukaebashi (Land right)” for which the cap rate are not calculated based on the direct capitalization method.

44

Appraisal Value List as of the end of FP35 (Aug. 2019)

Appraisal Value List I

Change ofAppraisal

Change ofUnrealizedGain/Loss

(million yen) (million yen)● Aoyama Suncrest Building(Note) 10,169 13,360 - 3,190 440 3.4% - 458● Round-Cross Ichi-bancho 3,015 3,970 3.8% 954 140 3.7% -0.1% 158● Round-Cross Nishi Shinjuku 2,395 3,980 3.4% 1,584 120 3.1% -0.1% 128● DT Gaien 2,070 3,100 3.8% 1,029 140 4.7% -0.1% 140● Yoyogi Forest Building 1,367 1,650 4.0% 282 40 2.5% -0.1% 49● Round-Cross Akasaka 2,763 2,840 4.4% 76 60 2.2% -0.1% 70● Round-Cross Mita 1,659 1,640 4.4% -19 30 1.9% -0.1% 38● Round-Cross Shiba Daimon 2,311 3,530 4.2% 1,218 100 2.9% -0.1% 109● Round-Cross Tsukiji 2,982 3,880 4.4% 897 40 1.0% -0.1% 59● Shiba 2-chome Daiko Building 6,015 9,900 4.2% 3,884 220 2.3% -0.1% 266● Aoyama 246 Building 5,257 8,790 3.5% 3,532 190 2.2% -0.1% 196● Round-Cross Shinjuku 7,306 11,300 3.5% 3,993 400 3.7% 0.0% 423● Seafort Square Center Building 16,303 14,900 3.9% -1,403 400 2.8% -0.1% 348● ORIX Akasaka 2-chome Building 19,376 24,200 3.2% 4,823 800 3.4% -0.1% 895● Round-Cross Shinjuku 5-chome 3,741 4,490 3.7% 748 0 0.0% 0.0% 29● Nihonbashi Honcho 1-chome Building 9,294 9,260 3.5% -34 420 4.8% -0.1% 466● Round-Cross Shibuya 3,194 3,250 3.5% 55 60 1.9% 0.0% 74● ORIX Suidobashi Building 2,650 3,200 3.9% 549 80 2.6% -0.1% 96● ORIX Shinagawa Building 14,065 13,800 3.4% -265 500 3.8% -0.1% 550● ORIX Real Estate Nishi Shinjuku Building 12,906 14,700 3.6% 1,793 -200 -1.3% 0.0% -165 ● Round-Cross Tamachi 6,715 8,540 4.0% 1,824 240 2.9% 0.0% 257● MG Shirokanedai Building 8,435 8,930 3.9% 494 -70 -0.8% -0.1% -40 ● SHIBUYA PINE Bldg. 3,442 4,650 3.5% 1,207 -130 -2.7% 0.0% -120 ● MG Ichigaya Building 2,968 3,790 3.5% 821 80 2.2% -0.1% 94● Round-Cross Ginza 2-chome 5,130 6,420 3.3% 1,289 260 4.2% -0.1% 273● ARK Hills South Tower 21,679 25,800 3.1% 4,120 800 3.2% -0.1% 856● Round-Cross Akihabara 4,366 4,970 3.2% 603 140 2.9% -0.1% 147● Gaien Nishi-dori Building 9,107 10,550 3.5% 1,442 320 3.1% -0.1% 334● Round-Cross Roppongi 12,371 13,500 3.3% 1,128 400 3.1% -0.1% 426▲ Carrot Tower 3,574 7,060 4.1% 3,485 -100 -1.4% -0.1% -60 ▲ Beside Kiba 1,880 2,930 4.2% 1,049 50 1.7% -0.1% 69▲ ORIX Ikebukuro Building 8,060 13,400 3.9% 5,339 300 2.3% -0.1% 337▲ KN Jiyugaoka Plaza 3,030 3,040 4.1% 9 0 0.0% 0.0% 7▲ ORIX Meguro Building 5,771 9,290 4.1% 3,518 260 2.9% 0.0% 310▲ Akihabara Business Center 4,337 6,890 3.8% 2,552 0 0.0% 0.0% 46■ Neo City Mitaka 1,902 3,300 4.4% 1,397 10 0.3% -0.1% 9■ Round-Cross Kawasaki 3,861 6,900 4.5% 3,038 160 2.4% -0.1% 186■ Omiya Miyacho Building 3,612 4,910 4.8% 1,297 -110 -2.2% 0.0% -75 ■ Omiya Shimocho 1-chome Building 3,156 4,830 4.8% 1,673 10 0.2% 0.0% 43■ ORE Omiya Building 7,105 8,620 5.2% 1,514 220 2.6% 0.0% 227★ Nagoya Itochu Building 4,288 6,220 4.7% 1,931 250 4.2% -0.1% 305★ ORIX Koraibashi Building 4,256 5,950 4.0% 1,693 250 4.4% -0.1% 295★ Lunar Sendai 7,044 6,850 4.4% -194 70 1.0% -0.1% 138★ ORIX Nagoya Nishiki Building 10,293 9,940 4.0% -353 290 3.0% -0.1% 383★ ORE Sapporo Building 3,064 6,780 5.5% 3,715 170 2.6% -0.1% 233★ ORIX Kobe Sannomiya Building 3,028 4,470 5.2% 1,441 130 3.0% 0.0% 181★ ORE Nishiki 2-chome Bldg. 9,928 13,500 4.6% 3,571 100 0.7% 0.0% 207★ DOJIMA PLAZA BLDG. 9,264 12,400 3.9% 3,135 700 6.0% -0.1% 766★ PRIME SQUARE HIROSE-DORI 6,840 9,190 4.2% 2,349 230 2.6% -0.1% 289★ Hamamatsu Act Tower 12,655 13,300 5.8% 644 200 1.5% 0.0% 21★ ORIX Yodoyabashi Bldg. 4,956 5,970 4.0% 1,013 180 3.1% -0.1% 198★ SAPPORO BRICK CUBE 5,350 6,050 4.3% 699 220 3.8% -0.1% 219★ Round-Cross Kagoshima 1,263 1,500 5.7% 236 0 0.0% 0.0% 9

331,597 416,180 - 84,582 - - - -

Type Area Property

FP35 (Aug. 2019) Change from FP34 (Feb. 2019)

Cap RateChange of

Appraisal RatioChange ofCap Rate

Book Value(million yen)

AppraisalValue

(million yen)

UnrealizedGain/Loss

(million yen)

Offices

Total of Offices

Note: For the “Aoyama Suncrest Building”, the appraisal value and cap rate of the property is not calculated based on the direct capitalization method.

*Area symbol: ● 6 Central Tokyo Wards ▲ Remaining Tokyo Wards ■ Other Parts of the Greater

Tokyo Area ★ Other Areas

45

Appraisal Value List II

*Area symbol: ● 6 Central Tokyo Wards ▲ Remaining Tokyo Wards ■ Other Parts of the Greater

Tokyo Area ★ Other Areas

Change ofUnrealizedGain/Loss

(million yen)● Nihon Jisho Minami Aoyama Building 2,442 4,260 3.4% 1,817 90 2.2% -0.1% 94● CUBE Daikanyama 2,359 4,030 4.1% 1,670 50 1.3% -0.1% 55● aune Yurakucho 9,836 12,000 3.2% 2,163 0 0.0% 0.0% 16● Cross Avenue Harajuku 4,757 7,060 2.8% 2,302 -110 -1.5% 0.0% -102 ● J-ONE SQUARE 1,501 1,720 3.7% 218 -10 -0.6% 0.0% -7 ● JouLe SHIBUYA 7,450 9,040 3.3% 1,589 -60 -0.7% 0.0% -46 ● SO-CAL LINK OMOTESANDO 2,305 2,890 3.3% 584 0 0.0% 0.0% 1● Kita Aoyama Building 931 990 3.2% 58 20 2.1% -0.1% 23▲ aune Ikebukuro 6,043 7,660 3.7% 1,616 -90 -1.2% 0.0% -46 ■ aune Kohoku 3,285 4,370 4.6% 1,084 40 0.9% 0.0% 79■ aune Makuhari 3,036 4,900 4.9% 1,863 50 1.0% 0.0% 7■ Maruetsu Sagamino 2,198 2,760 5.0% 561 0 0.0% 0.0% -32 ■ CROSS GARDEN KAWASAKI 11,639 15,800 4.2% 4,160 0 0.0% 0.0% 112■ Tecc Land Totsuka (Land right)(Note1) 6,073 5,980 - -93 0 0.0% - 0■ Clio Fujisawaekimae 3,791 4,600 5.2% 808 -160 -3.4% 0.0% -131 ★ Kobe Momoyamadai Shopping Center (Land right)(Note1, 2) 1,268 1,270 - 1 - - - -★ Okayama Kume Retail Facility 2,294 3,120 6.2% 825 -190 -5.7% 0.3% -175 ★ Home Center Musashi Sendai Izumi (Land right)(Note1) 2,381 2,990 - 608 0 0.0% - 0★ aune Sapporo Ekimae 1,821 2,360 5.1% 538 -20 -0.8% 0.0% -12 ★ Morioka Minami Shopping Center Sansa 2,578 3,370 6.0% 791 10 0.3% 0.0% 35★ AEON TOWN Sendai-Izumiosawa (Land right)(Note1) 3,540 3,940 - 399 0 0.0% - 0★ intervillage OH! MAGARI 4,698 6,210 5.8% 1,511 0 0.0% 0.0% 63★ Valor Suzuka Shopping Center 3,010 3,250 5.6% 239 -310 -8.7% 0.0% -297 ★ aune Sendai 1,977 2,330 4.8% 352 30 1.3% -0.1% 26★ Friend Town Fukaebashi (Land right)(Note1) 2,424 2,790 - 365 -10 -0.4% - -10 ★ KONAMI SPORTS CLUB KORIEN 1,593 1,760 5.3% 166 0 0.0% 0.0% 8★ aune Tenjin 4,485 5,000 4.0% 514 0 0.0% 0.0% 16★ Sendai Minamimachidori Building 3,946 4,120 4.3% 173 - - - -

103,676 130,570 - 26,893 - - - -● We Will Hatchobori 2,055 2,670 4.0% 614 50 1.9% -0.1% 64● Shibaura Island Air Tower 4,625 7,580 4.5% 2,954 160 2.2% -0.1% 245● Belle Face Togoshi Statio 2,271 3,280 4.0% 1,008 80 2.5% -0.1% 104● Belle Face Meguro 3,054 4,240 3.7% 1,185 120 2.9% -0.1% 140● Central Crib Roppongi 7,437 9,100 3.7% 1,662 260 2.9% -0.1% 274▲ Belle Face Kamata 2,971 4,560 4.2% 1,588 110 2.5% -0.1% 140▲ Belle Face Hongo Yumicho 2,921 4,000 4.0% 1,078 100 2.6% -0.1% 120▲ Belle Face Mishuku 1,870 2,370 4.2% 499 10 0.4% -0.1% 21▲ West Park Tower IKEBUKURO 19,752 25,100 3.8% 5,347 600 2.4% -0.1% 688▲ Belle Face Higashijujo 2,814 3,350 4.2% 535 -40 -1.2% -0.1% -20 ■ R-Styles Musashi-Kosugi 3,934 5,360 4.8% 1,425 90 1.7% -0.1% 150★ Belle Face Osaka Shinmachi 2,902 4,710 4.6% 1,807 100 2.2% -0.1% 144★ Belle Face Amagasaki 2,764 3,930 4.7% 1,165 40 1.0% -0.1% 77★ Belle Face Kanazawa Kohrinbo 2,170 2,610 5.5% 439 -80 -3.0% -0.1% -56

61,547 82,860 - 21,312 - - - -■ Toda Logistics Center 8,194 11,400 4.2% 3,205 0 0.0% 0.0% 75■ Ichikawa Logistics Center 6,817 9,640 4.5% 2,822 -100 -1.0% 0.0% -25 ■ Iwatsuki Logistics Center 5,659 7,410 4.5% 1,750 0 0.0% 0.0% 70★ Sakai Logistics Center North Building 7,395 13,200 4.7% 5,804 0 0.0% 0.0% 145★ Komaki Logistics Center 2,066 3,310 4.9% 1,243 20 0.6% 0.0% 60

30,134 44,960 - 14,825 - - - -● TAKANAWA DUPLEX C's 2,825 3,220 4.4% 394 80 2.5% -0.1% 91■ Cross Gate 9,172 18,600 4.4% 9,427 0 0.0% -0.1% 102■ GOOD TIME LIVING Shin-urayasu 1,501 1,990 5.2% 488 0 0.0% 0.0% 0■ Tokyo Bay Maihama Hotel First Resort 27,374 28,100 4.2% 725 600 2.2% -0.1% 453★ VIA INN SHINSAIBASHI BLDG. 2,940 3,920 3.9% 979 100 2.6% -0.1% 124★ HOTEL KEIHAN SAPPORO 2,300 3,310 4.3% 1,009 100 3.1% -0.1% 131★ Richmond Hotel Yamagata Ekimae 2,079 2,460 5.5% 380 10 0.4% 0.0% 40★ Hotel Nikko Himeji 5,194 3,810 5.6% -1,384 -280 -6.8% 0.0% -616 ★ HOTEL LiVEMAX NAGOYA SAKAE-EAST 1,517 1,750 4.4% 232 0 0.0% 0.0% 12★ Hotel Universal Port 33,911 34,700 4.1% 788 300 0.9% -0.1% 245

88,818 101,860 - 13,041 - - - -615,775 776,430 - 160,654 - - - -

Type Area Property

Change from FP34 (Feb. 2019)

Cap RateChange of

Appraisal RatioChange ofCap Rate

LogisticsFacilities

Total of Logistics Facilities

FP35 (Aug. 2019)

Book Value(million yen)

AppraisalValue

(million yen)

UnrealizedGain/Loss

(million yen)

Change ofAppraisal

(million yen)

Total

RetailFacilities

Total of Retail Facilities

ResidentialProperties

Total of Residential Properties

Hotels andOthers

Total of Hotels and Others

Note1: For the “Tecc Land Totsuka (Land right)”,“Kobe Momoyamadai Shopping Center (Land right)” ,“Home Center Musashi Sendai Izumi (Land right)” , “AEON TOWN Sendai-Izumiosawa (Land right)” and“Friend Town Fukaebashi (Land right)”, the appraisalvalue and cap rate are not calculated based on the direct capitalization method.

Note2: OJR disposed a section of "Kobe MomoyamadaiShopping Center (Land right)" on February 19, 2019.

46

Investment Units by Unitholder Type

Note: Each share in Top 10 Unitholders is rounded down to the nearest whole number.

Investor Status

Unitholders by Type

47

Number of Units Share %（Note)

Japan Trustee Services Bank, Ltd.(Trust accounts) 645,452 23.3

The Master Trust Bank of Japan, Ltd. (Trust accounts) 460,067 16.6

The Nomura Trust and Banking Co., Ltd. (Investment accounts) 125,063 4.5

Trust & Custody Services Bank, Ltd. (Securities investment trust accounts) 124,827 4.5

SSBTC CLIENT OMNIBUS ACCOUNT 58,992 2.1

JPMorgan Securities Japan Co., Ltd. 47,909 1.7

NOMURA BANK （LUXEMBOURG） S. A. 37,798 1.3

STATE STREET BANK WEST CLIENT - TREATY 505234 33,974 1.2

THE BANK OF NEW YORK 133970 32,546 1.1

STATE STREET BANK AND TRUST COMPANY 505223 31,112 1.1

Top 10 Unitholders

End of FP35

（Aug. 2019）

Top 10 Unitholders

UnitsShare

%Units

Share%

Units Ratio

%

Individual 184,394 6.7 173,527 6.3 -10,867 -0.4

Financial institution 1,802,536 65.3 1,814,289 65.7 11,753 0.4

Major bank 0 0.0 0 0.0 0 0.0

Regional bank 103,735 3.8 98,700 3.6 -5,035 -0.2

Trust bank 1,433,001 51.9 1,427,124 51.7 -5,877 -0.2

Life insurance company 47,071 1.7 44,599 1.6 -2,472 -0.1

General insurance company 9,337 0.3 21,112 0.8 11,775 0.4

Securities company 131,090 4.7 136,775 5.0 5,685 0.3

Shinkin bank 38,239 1.4 37,904 1.4 -335 0.0

Others 40,063 1.5 48,075 1.7 8,012 0.3

Other Japanese Company 53,185 1.9 52,125 1.9 -1,060 0.0

Foreign company 719,885 26.1 720,059 26.1 174 0.0

2,760,000 100 2,760,000 100 0 －

Unitholders

FP34(Feb. 2019)

FP35(Aug. 2019)

Change

Total

UnitholdersShare

%Unitholders

Share%

UnitholdersRatio

%

Individual 18,998 95.9 17,778 95.6 -1,220 -0.3

Financial institution 188 0.9 186 1.0 -2 0.1

Major bank 0 0.0 0 0.0 0 0.0

Regional bank 39 0.2 36 0.2 -3 0.0

Trust bank 16 0.1 16 0.1 0 0.0

Life insurance company 9 0.0 9 0.0 0 0.0

General insurance company 3 0.0 2 0.0 -1 0.0

Securities company 17 0.1 21 0.1 4 0.0

Shinkin bank 55 0.3 53 0.3 -2 0.0

Others 49 0.2 49 0.3 0 0.1

Other Japanese Company 309 1.6 291 1.6 -18 0.0

Foreign company 321 1.6 339 1.8 18 0.2

19,816 100 18,594 100 -1,222 －Total

Unitholders

FP34(Feb. 2019)

FP35(Aug. 2019)

Change

（Note）Due Diligence means examination of properties from physical, legal and economic perspective.

Due Diligence （Note）

Investment and Asset ManagementDepartment Ⅰ〜Ⅲ

Application

Risk Management and ComplianceCommittee

including external committee member

qualified as attorney

Resolution

Investment Committeeincluding external committee member

qualified as real estate appraiser

OJR Board of Management＜Directors do not have

conflicted interest ＞Prior consent

Decision of property acquisition/disposition

Execution of transaction

Risk Managementand Compliance

Department

Reject

Dissent

Legal andcompliance support

Return

Compliance System for Property Transaction

Risk Management and Compliance Committee

Comprised of the president and CEO, officer in charge of Risk Management and Compliance Department as well as external committee member qualified as attorney.Attendance and approval from officer in charge of Risk Management and Compliance Department as well as external committee member is required.

Investment Committee

Comprised of the president and CEO, OAM executive officer, officer in charge of RiskManagement and Compliance Department as well as external committee member qualified as real estate appraiser.Attendance and approval from external committee member is required.

Board of Management

Comprised of the Executive Director and 3 Supervisory Directors including real estate appraiser, attorney and certified public accountant with no conflicted interest.

RejectResolution

48

ORIX Asset Management Corporation

ORIX JREIT Inc.

Shareholders’ Meeting

Independent PublicAccountants

Board of Directors

President and CEO

Risk Management andCompliance Committee

Business Operation Management Department

General Affairs andAccounting Department

Finance and Investor Relations Department

Investment Committee

Strategic Planning Department

Risk Management andCompliance Department

Internal AuditDepartment

Corporate Auditor

Investment & AssetManagement Department I

Investment & Asset Management Department II

Investment & Asset Management Department III

Chairman

49

SustainabilityCommittee

Acquisition & Disposition, Management of Offices

Acquisition & Disposition, Management of Retail Facilities, Logistics Facilities, Residential Properties

Acquisition & Disposition, Management of Hotels

Company name

Head office

Representative

Date of establishment

Paid-in capital

Shareholder

Business

September 8, 2000

ORIX Asset Management Corporation

2-3-1 Hamamatsu-cho, Minato-ku, Tokyo

President and CEO Yoshitaka Kamemoto

100,000,000 yen

ORIX Corporation (100%)

Asset management

Corporate Profile of Asset Management Company

50Glossary I【Numerical Data 】・Numerical data is rounded down to the nearest whole number. However, percentages such as occupancy rate and LTV as well as building age and multiples are, in principle, rounded

to the first decimal place.

【Definition 】Terms Definition

3 properties acquisition and 2properties disposition

The term collectively refers to the acquisition of “TOKYU REIT Akasaka Hinokicho Building”, “Sendai Minamimachidori Building” and “Felicita SanjoKiyamachi” and the disposition of “KN Jiyugaoka Plaza” and “Okayama Kume Retail Facility”.

3 properties disposition duringFP34

The term refers to the disposition of “A Section of Kobe Momoyamadai Shopping Center (Land right),” “Cross Mall Shimonoseki-Chofu” and “GRAN MARTTegata”.

Acquisition priceThe term indicates the acquisition price stipulated in sales and purchase agreement, the term doesn’t include consumption tax and other transaction-related

costs.

Amount related to capital

gains

The term is calculated by deducting internal reserves and expenses for prepayment from capital gains on property dispositions for each fiscal period, and

dividing the said calculated results by number of investment units outstanding at the end of each fiscal period. Figures are rounded down to the nearest

whole number.

Annualized income after

depreciation

� At the end of each fiscal period, the term is calculated as the actual annualized income after depreciation for properties owned at the end of each fiscal

period.� As for the “TOKYU REIT Akasaka Hinokicho Building” and “Felicita Sanjo Kiyamachi”, the term is calculated by deducting depreciation expense

estimated by OJR from Net Operating Income based on the direct capitalization method indicated in the appraisal reports upon acquisition.

Annualized NOI

� At the end of each fiscal period, the term is calculated as the actual annualized income for each fiscal period about properties owned at the end of each

fiscal period.� As for the “TOKYU REIT Akasaka Hinokicho Building” and “Felicita Sanjo Kiyamachi”, the term indicates Net Operating Income based on the direct

capitalization method indicated in the appraisal reports obtained upon acquisition.

Appraisal Value� At the end of each fiscal period, the term indicates the appraisal value for properties owned at the end of each fiscal period.� As for the “TOKYU REIT Akasaka Hinokicho Building” and “Felicita Sanjo Kiyamachi”, the term indicates the appraisal value in the appraisal report

obtained upon acquisition.

Average duration to maturityThe term indicates the weighted-average calculated according to the remaining duration of each interest-bearing liability from each given point in time to its

repayment date or maturity date and the total balance of interest-bearing liabilities as of the same point in time. Figures are rounded to the first decimal place.

Average funding cost

The term indicates the annualized figures calculated by dividing “the total of interest expenses on debts and investment corporation bonds, financing-relatedexpenses excluding expenses related to both prepayments and commitment line contracts and the total of amortization of investment corporation bondissuance costs” booked in the profit and loss statements for each fiscal period by “the average balance of the total interest-bearing liabilities” for the samefiscal period. The figure is rounded to the nearest second decimal place.

Average interest rateThe term indicates the weighted-average interest rate (annual rate) based on the total balance of interest-bearing liabilities at each given point in time. The

figure is rounded to the second decimal place. With regard to the average interest rate on the portion of borrowings for which interest-rate swaps are

executed to hedge against the risk of interest rate fluctuation, the weighted-average interest rate is adjusted by the effect of relevant interest-rate swaps.

Book value� The term is based on the book value regarding properties owned at the end of each fiscal period.� As for the “TOKYU REIT Akasaka Hinokicho Building” and “Felicita Sanjo Kiyamachi”, the term indicates the acquisition prices.

Direct property managementor Direct PM

The term indicates the supplemental work of property management operations including leasing activities and activities to improve property value by ORIX

Asset Management Corporation which is the asset management company of OJR, while utilizing the ORIX Synergy.

51Glossary II

Terms Definition

Diversified REITThe term indicates real estate investment incorporations that invest in various types of property such as offices, retail facilities, residential properties, logistics

facilities, hotels and others.

Estimated depreciation

expenses or Depreciation

expenses estimated by OJR

The term is calculated based on straight-line method according to each useful life in the same manner as the existing properties owned by OJR

comprehensively in consideration of information indicated in engineering reports and others.

FFOThe term stands for “Funds From Operation” and it indicates the figure based on following formula:

“FFO” = Net income + Depreciation expenses + Cost of finance lease of property – capital gain/loss on disposition

Fixed-rate debt ratioThe term is calculated by dividing the balance of interest-bearing liabilities at the fixed-rate including interest-bearing liabilities at the fixed rate through

interest-rate swap at a given point in time by the total balance of interest-bearing liabilities as of the same point in time. The figure is rounded to the first

decimal place.

Free cash flow The term or FCF is calculated by the following formula:

Free cash flow = Depreciation expenses + Cost of finance lease of property – CAPEX

Income after depreciationThe term is calculated by the following formula:

Income after depreciation = NOI – Depreciation expenses for this fiscal period – Cost of finance lease of property

Internal reserves The term is calculated by adding additional reserves for the fiscal period to the balance of internal reserves at the end of the fiscal period.

LTV based on total assets

The term is calculated by dividing interest-bearing liabilities at a given point in time by total assets at the same point in time, and rounded to first decimal

place. In this document, it may also be referred to simply as "LTV".The “total assets” for each time point on the table is calculated as follows:

� As of the end of each fiscal period, the total assets as of the end of each fiscal period.� As of the financial announcement on Oct. 17, 2019, the total assets = the total assets as of the end of the FP35 (Aug. 2019) + debt financing amount

of 3,120 million yen for the acquisition of “Felicita Sanjo Kiyamachi”.

LTV based on unitholders’

capital

The term is calculated by dividing the balance of interest-bearing liabilities at a given point in time by the total of unitholders’ capital and the balance of

interest-bearing liabilities at the same point in time. The figure is rounded to the first decimal place.

NAVThe term is the abbreviation for “Net Asset Value” and is calculated by the following formula:

NAV = Unitholders’ capital + Unrealized gain/loss

NAV in consideration of

internal reserves

The term is calculated by the following formula:

NAV = Unitholders’ capital + Unrealized gain/loss + Internal reserves

NOI (Net Operating Income)The term is calculated based on the following formula. NOI = Net property income (Rental revenues – property-related expense) + Depreciation expenses for

the fiscal period. Rental revenues include revenues from finance lease of property and property-related expense includes cost of finance lease of property

respectively. Upon the calculation of NOI, cost of finance lease of property is added in Net property income for the fiscal period.

NOI yield The term is calculated by dividing “Annualized NOI” by “Acquisition price”. The figure is rounded to the first decimal place.

52Glossary III

Terms Definition

Occupancy rateThe term is calculated by dividing “Rented floor space” at a given point in time by “Rentable floor space” at the same point in time. The figure is rounded tothe first decimal place. The occupancy rate as of financial announcement on Oct. 17, 2019 represents the occupancy rate at the end of FP35 ended Aug. 31,2019.

ORIX Synergy The term refers to the cooperative relationship among OJR and ORIX Corporation and its group companies.

Previous financial

announcementThe term refers to the financial announcement for FP34 ended Feb. 28, 2019 released on Apr. 18, 2019.

Rent Fluctuation Rate

【The term refers to the definitions below:

At the time of tenant turnovers

� For compartments of which new monthly contract rents including assumed rents for each occupied compartment and former tenants’ contract rents are

comparable among new move-ins including assumed move-ins in each fiscal period, rent fluctuation rate is calculated by dividing the variance between

the total of new monthly contract rents and the total of former tenants’ contract rents by the total of former tenants’ contract rents. At the time of tenant renewal� As for office tenants for which rent is renewed including assumed renewals in each period, the figure is calculated by dividing the variance between the

total of new monthly contract rents (including assumed rents) in the given area and the total of pre-renewal monthly contract rents by the total of pre-renewal monthly contract rents. As for residential tenants whose contracts are renewed including renewal with the same rent, the figure is calculated bydividing the variance between total new monthly contract rents and total of pre-renewal monthly contract rents by the total of pre-renewal monthlycontract rent.

Rentable floor spaceThe term indicates the total floor space in OJR’s ownership portion of each real estate that is practically rentable including the common spaces if it is actually

under leasing. The owned portions or ownership ratio of OJR for each property are indicated.

Rented floor spaceThe term indicates the space included in the rentable space, which is actually under lease based on leasing agreements with tenants. The owned portions or

ownership ratio of OJR for each property are indicated.

The ratio of rent conditions

The term represents the ratio of “fixed rents” and “variable rents” in the overall portfolio and the results were round to the nearest whole number. Fixed rentsfor properties held at the end of FP 35 ended Aug. 31, 2019 are calculated based on the monthly contract rent as of the end of FP35 ended Aug. 31, 2019;fixed rents for properties acquired during FP 36 ending Feb. 29, 2020 are calculated based on the monthly contract rent at the end of August 2019. Variablerents are calculated by adding the 200 million yen received in advance in FP 33 ended Aug. 31, 2018 from the variable rents for FP 34 ended Feb. 28, 2019for Hotel Universal Port to the variable rents (including sales-based rents) for FP 34 ended Feb. 28, 2019 and FP 35 ended Aug. 31, 2019, and dividing thissum by 12. Variable rents are not applied to any of the properties acquired during FP 36 ending Feb. 29, 2020.

Unrealized gain/loss The term indicates the variance between “Appraisal value” and “Book value” of properties and it is rounded down to the nearest whole number.

Yield after depreciation The term is calculated by dividing “Annualized income after depreciation” by “Book value”. The figure is rounded to the first decimal place.

Asset Management Company ︓ORIX Asset Management Corporation

This document was provided and released solely with the intent of providing information.This document should not be construed as an offer or solicitation to buy or sell any specific product, including investment units.This document is not a disclosure document or statement of financial performance required by, or based on, Japan’s Financial Instruments and Exchange Law, Investment Trust and Investment Corporation Law, related cabinet orders, cabinet office ordinances or rules, the rules governing companies listed on the Tokyo Stock Exchange, or any other applicable rules. This document contains forward-looking statements, including forecasts of financial position, results of operations, and business-related matters, as well as statements related to the plans and goals of OJR and the management of ORIX Asset Management Corporation that provides asset management services for OJR. However, there are a number of known and unknown risks and uncertainties that can cause actual results or OJR’s performance to differ materially from any explicit or implicit forecasts contained herein.These forward-looking statements also rest on a number of assumptions with regard to OJR’s present and future management strategies, as well as the political and economical environments in which OJR will conduct its future business operations.Although the information contained in this document is the best available at the time of publication, no assurances can be given regarding the accuracy, certainty, validity or fairness of this information. The content of this document can be modified or withdrawn without prior notice.

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