Financial Report for the Fiscal Period Ended May 31, 2025 (December 1, 2024 - May 31, 2025)

July 16, 2025

Activia Properties Inc.

Listing: Tokyo Stock Exchange Securities code: 3279

URL: https://www.activia-reit.co.jp/en/ Representative: Manabu Kamikawara, Executive Director

Investment management company: TLC REIT Management Inc. Representative: Akira Kubo, President & CEO

Contact: Manabu Kamikawara, Division Manager of Activia Management Division and General Manager of Activia Strategic Management Department

TEL: +81-3-6455-3377

Scheduled date to file Securities Report: August 27, 2025 Scheduled date to start distribution payments: August 20, 2025 Supplementary material on financial report: Yes

Financial report presentation meeting: Yes (for institutional investors and analysts)

(Amounts truncated to the nearest million yen)

1. Summary of financial results for the fiscal period ended May 31, 2025 (December 1, 2024 - May 31, 2025)

   1. Operating results (Percentages show changes from the corresponding amounts for the previous period.)

      	Operating revenue		Operating profit		Ordinary profit		Profit
      	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
      Fiscal period ended May 31, 2025	15,881	1.1	8,028	2.9	6,915	2.5	6,914	2.5
      Fiscal period ended November 30, 2024	15,708	(1.3)	7,802	(7.2)	6,746	(9.0)	6,745	(9.0)

      	Basic earnings per unit	Return on unitholders' equity (ROE)	Ordinary profit to total assets	Ordinary profit to operating revenue
      	Yen	%	%	%
      Fiscal period ended May 31, 2025	2,909	2.6	1.2	43.5
      Fiscal period ended November 30, 2024	2,838	2.5	1.2	42.9

      (Note) A three-for-one split of the investment units has been implemented, with May 31, 2025 as the record date for the split of investment units and June 1, 2025 as the effective date. Basic earnings per unit is calculated as if the investment unit split had occurred at the beginning of the fiscal period ended November 30, 2024 (it is calculated using the day-weighted average number of investment units for the period (2,376,318 units for the fiscal period ended November 30, 2024 and 2,376,318 units for the fiscal period ended May 31, 2025)). The same applies hereinafter.

   2. Cash distributions

      	Cash distributions per unit (excluding excess of earnings)	Total distributions (excluding excess of earnings)	Cash distributions in excess of earnings per unit	Total distributions in excess of earnings	Cash distributions per unit (including excess of earnings)	Total distributions (including excess of earnings)
      	Yen	Millions of yen 6,915 7,366	Yen	Millions of yen - -	Yen	Millions of yen 6,915 7,366
      Fiscal period ended May 31, 2025	8,731		-		8,731
      Fiscal period ended November 30, 2024	9,300		-		9,300

      	Payout ratio	Distribution ratio to unitholders' equity
      	%	%
      Fiscal period ended May 31, 2025	100.0	2.6
      Fiscal period ended November 30, 2024	109.2	2.7

      (Note) The difference between total distributions and profit for the fiscal period ended November 30, 2024 was due to the reversal of reserve for tax purpose reduction entry (¥620 million).

   3. Financial position

      	Total assets	Net assets	Unitholders' equity to total assets	Net assets per unit
      As of May 31, 2025 As of November 30, 2024	Millions of yen 560,097 560,210	Millions of yen 267,332 267,784	% 47.7 47.8	Yen 112,498 112,688

      (Note) A three-for-one split of the investment units has been implemented, with May 31, 2025 as the record date for the split of investment units and June 1, 2025 as the effective date. Net assets per unit is calculated as if the investment unit split had occurred at the beginning of the fiscal period ended November 30, 2024.

   4. Cash flows

   	Cash flows from operating activities	Cash flows from investing activities	Cash flows from financing activities	Cash and cash equivalents at end of period
   Fiscal period ended May 31, 2025 Fiscal period ended November 30, 2024	Millions of yen 8,602 8,690	Millions of yen (2,606) (1,532)	Millions of yen (7,573) (8,620)	Millions of yen 19,804 21,381

2. Forecasts of results for the fiscal period from June 1, 2025 to November 30, 2025 and the fiscal period from December 1, 2025 to May 31, 2026

(Percentages show changes from the corresponding amounts for the previous period.)

(Reference) Forecasted basic earnings per unit (forecasted profit / total projected number of investment units issued at end of period)

for the fiscal period ending November 30, 2025: ¥3,000 for the fiscal period ending May 31, 2026: ¥2,902

1. Changes in accounting policies, changes in accounting estimates, and restatement of prior period financial statements

   1. Changes in accounting policies due to revisions to accounting standards and other regulations: None

   2. Changes in accounting policies due to other reasons: None

   3. Changes in accounting estimates: None

   4. Restatement of prior period financial statements: None

2. Total number of units issued

   1. Total number of units issued at end of period (including treasury investment units)

      As of May 31, 2025 792,106 units

      As of November 30, 2024 792,106 units

   2. Number of treasury investment units at end of period

As of May 31, 2025 - units

As of November 30, 2024 - units

(Note) Please refer to "Per Unit Information" on pages 32 and 33 for the number of investment units used as the basis for calculating basic earnings per unit.

• Financial reports are exempt from audit conducted by certified public accountants or an audit corporation.
• Other special items

Forward-looking statements presented in this financial report including forecasts of results are based on information currently available to us and on certain assumptions we deem to be reasonable. As such, actual operating and other results may differ materially due to a number of factors. Furthermore, these forecasts are in no way a guarantee of any distribution amount. Please refer to "Assumptions for Forecasts of Investment Performance for the Fiscal Period Ending November 30, 2025 (28th Fiscal Period) and the Fiscal Period Ending May 31, 2026 (29th Fiscal Period)" on pages 11 through 12 for information on assumptions for the forecasts.

Index

1. Asset Management Status 5

2. Financial Statements 13

   1. Balance Sheet 13

   2. Statement of Income 15

   3. Statement of Unitholders' Equity 16

   4. Statement of Cash Distributions 18

   5. Statement of Cash Flows 19

   6. Notes on Assumption of Going Concern 20

   7. Notes on Important Accounting Policies 20

   8. Notes to Financial Statements 22

   9. Changes in Total Number of Investment Units Issued 34

3. Reference Information 37

1. Asset Management Status

   1. Asset Management Status

      1. Summary of Results for the Current Fiscal Period

         1. Transition of Investment Corporation

            Activia Properties Inc. (hereinafter referred to as the "Investment Corporation") was established on September 7, 2011, with unitholders' capital of ¥200 million (400 units), and with TLC Township Inc. acting as organizer in accordance with the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, including subsequent revisions; hereinafter referred to as the "Investment Trust Act"). The Investment Corporation completed its registration in the Kanto Local Finance Bureau on September 20, 2011 (Director-General of the Kanto Local Finance Bureau No. 73). Note that on April 1, 2017, an absorption-type merger took place with what is now TLC REIT Management Inc. (hereinafter referred to as the "Asset Manager") as the surviving company and TLC Activia Investment Management Inc. (its trade name was changed from TLC Township Inc. on April 1, 2012) as the absorbed company.

            After that, the Investment Corporation was listed on the real estate investment trust securities market of Tokyo Stock Exchange, Inc. (Securities code 3279) on June 13, 2012. On September 7, 2021, the Investment Corporation carried out its seventh publicly offered capital increase after the listing, and on September 28, 2021, it carried out a third-party allotment.

            "Activia" of "Activia Properties," the name of the Investment Corporation, has been coined from the words "activate" and "ia," a suffix meaning "place." By investing in and managing real estate appropriate to its name, the Investment Corporation seeks to become an entity capable of broadly energizing society. The Investment Corporation will also select real estate capable of sustaining customer demand as a location for both corporate activities and urban recreation in popular areas, with the aim of maximizing the medium- and long-term value of unitholders, supported by its proactive management (management to improve the circumstances by taking initiatives and acting for the future).

         2. Investment Environment in the Fiscal Period Under Review

            The Japanese economy experienced a modest recovery amid continuing improvements in the employment and income environment during the fiscal period under review despite evoking uncertainty mainly due to U.S. trade policies.

            In the environment for retail properties, there was an increased demand for store openings by high-rent-paying tenants mainly on account of an increase in inbound foreign tourists and improvements in the income environment.

            In the rental office market, the vacancy rate declined mainly as a result of the reduction in vacancies in new large buildings that had been completed in the previous year. Meanwhile, the average vacancy rate in the five central wards of Tokyo (Chiyoda-ku, Minato-ku, Chuo-ku, Shibuya-ku and Shinjuku-ku) as of May 31, 2025, according to data published by Miki Shoji Co., Ltd., was 3.56%, a decrease of 0.6 percentage points from November 30, 2024. Of these, the vacancy rate in Shibuya-ku remained at a low level compared to the other areas at 2.49%. The average rent per tsubo (about 3.3 square meters) in the five central wards of Tokyo as of May 31, 2025, was ¥20,776.

            In the J-REIT market, although the REIT index dropped briefly in April following a sudden drop in the stock market due to U.S. tariff policies, the Tokyo Stock Exchange REIT Index rose as a result of the Bank of Japan announcing it would maintain interest rates and the abatement of concerns about

            U.S. tariff policies.

         3. Investment Performance

The Investment Corporation acquired Silent Partnership Equity Interests in Kashiwa Logi Investment GK (with the acquisition price of ¥276 million) on March 27, 2025 and No. B Silent Partnership Equity Interest in Godo Kaisha CA-1 (with the acquisition price of ¥1,000 million) on April 3, 2025, in accordance with the basic asset management policy set forth in the Articles of Incorporation.

Consequently, total portfolio properties held by the Investment Corporation at the end of the fiscal period under review were 45 properties (with the total acquisition price of ¥541,800 million) with the total leasable area of 443,875.29 m2 (134,270 tsubo).