Japan Excellent, Inc. · TSE:8987
Japan Excellent — 40th Period Earnings Presentation
51 slides from Japan Excellent's earnings presentation, Sep 3, 2026
Slide 1: Fortieth Period (Ended June 2026) Presentation Materials
Fortieth Period (Ended June 2026) Presentation Materials August 24, 2026 Securities Code: 8987 https://www.excellent-reit.co.jp/en/ Japan Excellent Asset Management Co., Ltd. (Asset Management Company)
Slide 2: Table of Contents
〉 Table of Contents I. Operating Policy for Future Growth 2 II. Financial Results 6 III. Performance Forecasts 10 IV. Management Status 14 V. ESG Initiatives 22 Reference Materials Features of Japan Excellent Inc. 26 Appendix 34 This data was prepared for the purpose of providing information and is
Slide 3: I. Operating Policy for Future Growth
I. Operating Policy for Future Growth AKASAKA INTERCITY AIR 2
Slide 4: Initiatives for Growth
〉 1. Initiatives for Growth Achieving sustained growth in EPU (average annual growth rate of 2% or more) to increase DPU Initiative Policies Initiative Results Future Initiatives Promote the replacement of Continue to promote strategic External Growth approximately 10% (30.0 billion Cumulative total
Slide 5: Policy for DPU and EPU Growth
〉 2. Policy for DPU and EPU Growth We expect to continue realizing unrealized gains through property replacements, and have raised the forecast distribution from 3,100 yen for the 41st Period to 3,130 yen for the 42nd Period We aim to achieve sustainable EPU growth by utilizing transfer proceeds for
Slide 6: Memo
Memo adn rm] PLM Japan Excellent, Inc.
Slide 7: II. Financial Results
II. Financial Results AKASAKA INTERCITY 6
Slide 8: Overview of Financial Results of the 40th Period
〉 1. Overview of Financial Results of the 40th Period (Ended June 2026) (million yen) ● Comparison of the Results for the 39th Period 39th Period 40th Period 40th Period 40th Period 40th Period (Ended Dec. 2025) (C-A) Results Results (Dec. 2025) (Jun. 2026) (Jun. 2026) <Main factors causing changes>
Slide 9: Highlights of the 40th Period
〉 2. Highlights of the 40th Period (Ended June 2026) External Growth Internal Growth Financial Strategy External Assessment Interest-bearing debt Asset Size Period-end occupancy rate Ratings (JCR) Average remaining period 297.4 billion yen 98.1 % 3.9 years AA-(stable) (change from FP39: +6.9 billion
Slide 10: Memo
Memo adn rm] PLM Japan Excellent, Inc.
Slide 11: III. Performance Forecasts
III. Performance Forecasts Omori Bellport D 10
Slide 12: Performance Forecasts
〉 1. Performance Forecasts (million yen) ● Comparison of the Results for the 40th Period 40th Period 41st Period 42nd Period and Forecasts for the 41st Period (B-A) Compared with Compared with <Main factors causing changes> (Jun. 2026) (Dec. 2026) (Jun. 2027) (million yen) previous period previous p
Slide 13: DPU and EPU Outlook
〉 2. DPU and EPU Outlook Base rental revenue is growing strongly through proactive rent revisions that capture rising market rents Meanwhile, EPU will temporarily decline due to the impact of the transfer of properties occurring in advance, but DPU is expected to increase through the strategic utili
Slide 14: Memo
Memo 13 adn rm] PLM Japan Excellent, Inc.
Slide 15: IV. Management Status
IV. Management Status BIZCORE SHIBUYA 14
Slide 16: External Growth (1) Implementation of Strategic Property Replacement
〉 1. External Growth (1) Implementation of Strategic Property Replacement Promote strategic property replacement with a focus on the cost of capital while generating gains through the transfer of low-yield, low-growth properties Continue actively replacing properties to improve portfolio yields and
Slide 17: Use of Transfer Proceeds from Daiba Garden City Building
〉 1. External Growth (2) Use of Transfer Proceeds from Daiba Garden City Building Transfer of Daiba Garden City Building, which had an unrealized loss, at a price 29% above its appraisal value, with an expected gain on transfer of 1.7 billion yen Plan to retain 1.5 billion yen of the gain on transfe
Slide 18: Status of Rent 1) (Move-in/out)
〉 2. Internal Growth (1) Status of Rent 1) (Move-in/out) The period-end occupancy rate for the 40th Period was 98.1%, and the rent increase rate upon tenant replacement was 5.6%. Excluding the impact of move-outs by certain tenants with a positive rent gaps, an increase of 10% or more was achieved H
Slide 19: Status of Rent 2) (Rent Revision)
〉 2. Internal Growth (1) Status of Rent 2) (Rent Revision) The area subject to upward revision in the 40th Period was 13,425 tsubo (change from FP39: +6,430 tsubo, Vs. plan: +2,164 tsubo), with a ratio of rent revised upward of 69.0% (change from FP39: +22.1 pt, Vs. plan: +2.0 pt) Set target levels
Slide 20: Status of Rent Gap
〉 2. Internal Growth (2) Status of Rent Gap The negative rent gap widened from -4.6% at the end of December 2025 to -8.4%, driven by rising market rents. We are actively negotiating rent increases even for properties with positive rent gaps. ■ Status of Rent Gap ■ Monthly Rent by Renewal Period (as
Slide 21: Financial Strategy
〉 3. Financial Strategy Utilize the stability of long-term funds (average remaining period of 3.9 years) while flexibly combining short-term loans and variable-rate financing to curb increases in financing costs ■ Financing Results for the 40th Period (Fiscal Period Ending June 2026) ■ Green Finance
Slide 22: Memo
Memo 21 adn rm] PLM Japan Excellent, Inc.
Slide 23: V. ESG Initiatives
V. ESG Initiatives GRAND FRONT OSAKA 22
Slide 24: External Assessment, Certification and Initiatives
〉 1. External Assessment, Certification and Initiatives Initiatives Environmental Certification ■ Status of Environmental of Certification (As of End of June 2026) ■ PRI (Principles for Responsible Investment) Percentage of properties that Number of properties that Signed in July 2020 (Asset Managem
Slide 25: Environment
〉 2. Environment Promote initiatives to achieve reduction targets for CO2 emissions, energy consumption and water consumption ■ CO2 Emissions ■ Energy Consumption Reduction Reduce CO2 emissions intensity by 42% or more compared to FY2023 by Reduction Reduce energy consumption intensity by 7% or more
Slide 26: Social and Governance
〉 3. Social and Governance Social Governance Efforts to Increase Tenant Satisfaction Initiatives Aimed at Conflicts of Interest ・ With regard to asset purchase and sale transactions with related parties, ✓ Implementation of Survey on Tenant Satisfaction we have established a decision-making process
Slide 27: Reference Materials ─ Features of Japan Excellent Inc.
Reference Materials ─ Features of Japan Excellent Inc. Nisseki Yokohama Building 26
Slide 28: Sponsors
〉 1. Sponsors ■ Results of Sponsor Support ➢ Acquisition from sponsors, etc. (acquisition price basis) Acquisition from Other involvement sponsors, etc. of sponsors, etc. Total 71.8% 19.9% involvement of sponsors, etc. 91.7% ➢ Percentage of properties managed by sponsors, etc. ■ Examples of Properti
Slide 29: Overview of Nippon Steel Kowa Real Estate
〉 2. Overview of Nippon Steel Kowa Real Estate Commercial Building Business The company is a general developer engaged in diversified business operations, Focusing on prime areas in central including office building development and leasing business primarily in prime Tokyo, the company develops the
Slide 30: Track Record
〉 3. Track Record ■ Distributions per Unit*1 (yen) 5,000 4,000 3,000 2,000 1,000 0 1st Period 5th Period 10th Period 15th Period 20th Period 25th Period 30th Period 35th Period 40th Period (Dec. 2006) (Dec. 2008) (Jun. 2011) (Dec. 2013) (Jun. 2016) (Dec. 2018) (Jun. 2021) (Dec. 2023) (Jun. 2026) ■ R
Slide 31: Portfolio Characteristics
〉 4. Portfolio Characteristics ■ Usage ■ Investment areas (Investment Policy) Area IV (Investment Policy) Investment ratio in 7.7% Investment ratio Target investment areas Usage*1 portfolio*2 Area III 7 properties in portfolio*2 Core areas 80% or more 19.0% 23.0 billion yen Office buildings 90% or m
Slide 32: Tenant Characteristics
〉 ５．Tenant Characteristics ■ Type of Industry of Tenants ■ Top 10 End Tenants Leased area End tenant name Property name Ratio (m2) Omori Bellport D Other JEI Hiroshima Hacchobori Building Other Products 2.6% 13.6% Hitachi Real Estate Partners, Ltd. SE Sapporo Building 12,805.73 4.3% Yokohama Bentend
Slide 33: Unit Price and Tokyo Stock Exchange REIT Index
〉 6. Unit Price and Tokyo Stock Exchange REIT Index (thousand yen) Unit Price (left axis) TSE J-REIT Index (right axis) (point) 300 4,500 4,000 250 JEI Unit Price 3,500 200 3,000 2,500 150 2,000 100 1,500 1,000 50 500 Tokyo Stock Exchange REIT index 0 0 Jun.27, End End End End End End End End End En
Slide 34: Management Structure
〉 7. Management Structure ■ Overview of JEI ■ Overview of JEAM Name Japan Excellent, Inc. Name Japan Excellent Asset Management Co., Ltd. Location 1-15-9 Minamiaoyama, Minato Ward, Tokyo Headquarters 1-15-9 Minamiaoyama, Minato Ward, Tokyo Securities Code 8987 Established April 14, 2005 Date Listed
Slide 35: Reference Materials ─ Appendix
Reference Materials ─ Appendix HAMARIKYU INTERCITY 34
Slide 36: Environmental Awareness
〉 Environmental Awareness ■ Historical New Large-Scale Office Supply Volume in 23 Wards of Tokyo Average supply in and after 2001 Average supply in and after 2026 (10,000 m²) 1,060,000 m² per year 820,000 m² per year (Forecast) 250 216 200 175 179 154 141 150 125 125 121 119 117 117 117 109 91 97 99
Slide 37: Revenue and Expenses by Property
〉 Revenue and Expenses by Property (Unit: million yen) Area I Area II Area III Area IV I-1 I-2 I-3 I-8 I-10 I-12 I-14 I-15 I-16 I-17 I-18 I-19 I-20 I-21 I-22 II-1 II-4 II-5 II-6 III-1 III-5 III-7 III-11 III-12 III-13 III-14 III-15 IV-3 IV-4 IV-5 IV-6 IV-7 IV-8 IV-10 Grand Front AKASAKA-MITSUKE Nisse
Slide 38: Overview of Period-End Appraisals
〉 Overview of Period-End Appraisals ■ Number of Properties with ■ Summary of Period-End Appraisal Value ■ Status of Cap Rate*2 *3 Increase/Decrease in Appraisal Value*2 39th Period 40th Period 39th Period 40th Period 39th Period 40th Period Difference (Dec. 2025) (Jun. 2026) (Dec. 2025) (Jun. 2026)
Slide 39: Period-End Appraisal Value
〉 Period-End Appraisal Value (Unit: million yen) End of 40th Difference Appraisal Value Difference ((2)-(1)) Difference ((2)-(3)) Direct Capitalization Yield Property Acquisition Period ((5)-(4)) Area Name Appraisal Organization Number price End of FP39 End of FP40 Book value End of FP39 End of FP40
Slide 40: History of Depreciation, Capital Expenditures, and Repairs and Maintenance Fees
〉 History of Depreciation, Capital Expenditures, and Repairs and Maintenance Fees (million yen) Depreciation Capital expenditures Repairs and maintenance fees 2,500 2,000 1,850 1,865 1,789 1,803 1,782 1,761 1,765 1,714 1,575 1,605 1,559 1,513 1,500 1,436 1,317 1,000 500 387 194 169 165 138 155 147 0
Slide 41: Income Statement (P/L)
〉 Income Statement (P/L) (Unit: million yen) 39th Period Percentage 40th Period Percentage Compared with previous period (Dec. 2025) (%) (Jun. 2026) (%) Difference (%) 1. Operating revenue (A) 11,672 100.0 11,604 100.0 -68 -0.6 Rental revenue 10,096 10,131 34 Other rental revenue 1,018 789 -229 Tota
Slide 42: Balance Sheet
〉 Balance Sheet (Unit: million yen) Assets Liabilities and Net Assets 39th Period 40th Period 39th Period 40th Period Difference Difference (Dec. 2025) (Jun. 2026) (Dec. 2025) (Jun. 2026) Composition Composition Composition Composition (Assets) (Liabilities) ratio (%) ratio (%) ratio (%) ratio (%) I
Slide 43: Statements of Cash Flows and Profit Distribution
〉 Statements of Cash Flows and Profit Distribution ■ Statement of Cash Flows ■ Statement of Profit Distribution (Unit: million yen) (Unit: yen) 40th Period (Jun. 2026) 40th Period (Jun. 2026) Classification Amount Classification Amount I. Cash flow from operating activities 9,807 Unappropriated reta
Slide 44: Financial Indicators
〉 Financial Indicators 35th Period 36th Period 37th Period 38th Period 39th Period 40th Period Financial indicators Unit Calculation method (Dec. 2023) (Jun. 2024) (Dec. 2024) (Jun. 2025) (Dec. 2025) (Jun. 2026) Income before income taxes + (Interest expense + Interest expense on investment EBITDA (
Slide 45: Status of Interest-Bearing Debt
〉 Status of Interest-Bearing Debt ■ Outstanding Borrowings by Financial Institution (As of the End of 40th Period) ■ Status of Investment Corporation Bonds (As of the End of 40th Period) Balance As a percentage Balance Lender Investment corporation bond Maturity date Interest rate Period (million ye
Slide 46: Unitholders
〉 Unitholders Investment Units Unitholders End of 39th Period End of 40th Period End of 39th Period End of 40th Period Owner Classification (Dec. 2025) (Jun. 2026) Composition (Dec. 2025) (Jun. 2026) Composition Number of Number of Difference Number of Number of Difference Composition Composition Co
Slide 47: Portfolio Map
Portfolio Map Nakano Wi CORE AKASAKAMMITSUKE 8 AKASAKA INTERC Shibuya Ward BIZCORE SHIBU' 15 Mansard Daikanyama 22 ARK Hils FRONT TOWER Shinjuku Ward 16 AKASAKA INTERCITY AIR Ichiyoda Ward? Tokyo Sta Bi |-14 Kowa Nishi-shimbashi Building| Chuo Ward Koto Ward MARIE SS (12 HAMARIKYU INTERCITY /2 Shiba
Slide 48: Portfolio Overview (1)
〉 Portfolio Overview (1) Property Number I-1 I-2 I-8 I-10 I-12 I-14 I-15 I-16 I-17 Type Office Office Office Office Office Office Office Office Office Kowa Nishi- BIZCORE Shiba 2-Chome AKASAKA Daiba Garden City HAMARIKYU Mansard AKASAKA Name Omori Bellport D Shimbashi AKASAKA- Building INTERCITY Bui
Slide 49: Portfolio Overview (2)
〉 Portfolio Overview (2) Property Number I-18 I-19 I-20 I-21 I-22 II-1 II-4 II-5 II- 6 Type Office Office Office Office Office Office Office Office Office OSAKI BRIGHT NHK Nagoya GRAND FRONT GRAND FRONT BIZCORE BIZCORE BIZCORE ARK HILLS OSAKA Aqua Town Naya- Name TOWER / OSAKI Housou-Center OSAKA JI
Slide 50: Portfolio Overview (3)
〉 Portfolio Overview (3) Property Number III- 1 III- 5 III- 7 III- 11 III- 12 III- 13 III- 14 III- 15 Type Office Office Office Office Office Office Office Office Yokohama Musashikosugi Kawasaki JEI Ryogoku Nisseki Yokohama Shin-Yokohama Name Core City Tachikawa Bentendori Dai-ichi Urawa SH Building
Slide 51: Portfolio Overview (4)
〉 Portfolio Overview (4) Property Number IV-3 IV-4 IV-5 IV-6 IV-7 IV-8 IV-10 Type Office Office Office Office Office Office Office JEI Hiroshima Daiwa Minami- Hiroshima Dai-ichi Sapporo Otemachi Name SE Sapporo Building Aoba-dori Plaza JEI Naha Building Hacchobori Building morimachi Building Seimei