The Period Ended November 2025 (The 28th Period) Financial Report

January 16, 2026

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: February 25, 2026 Scheduled date to start distribution payments: February 18, 2026 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 November 30, 2025 (June 1, 2025 - November 30, 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 November 30, 2025	16,538	4.1	8,557	6.6	7,395	6.9	7,394	6.9
      Fiscal period ended May 31, 2025	15,881	1.1	8,028	2.9	6,915	2.5	6,914	2.5

      	Basic earnings per unit	Return on unitholders' equity (ROE)	Ordinary profit to total assets	Ordinary profit to operating revenue
      	Yen	%	%	%
      Fiscal period ended November 30, 2025	3,111	2.8	1.3	44.7
      Fiscal period ended May 31, 2025	2,909	2.6	1.2	43.5

      (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 May 31, 2025 (it is calculated using the day-weighted average number of investment units for the period (2,376,318 units for the fiscal period ended May 31, 2025 and 2,376,318 units for the fiscal period ended November 30, 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 7,397 6,915	Yen	Millions of yen - -	Yen	Millions of yen 7,397 6,915
      Fiscal period ended November 30, 2025	3,113		-		3,113
      Fiscal period ended May 31, 2025	8,731		-		8,731

      	Payout ratio	Distribution ratio to unitholders' equity
      	%	%
      Fiscal period ended November 30, 2025	100.0	2.8
      Fiscal period ended May 31, 2025	100.0	2.6

   3. Financial position

      	Total assets	Net assets	Unitholders' equity to total assets	Net assets per unit
      As of November 30, 2025 As of May 31, 2025	Millions of yen 561,233 560,097	Millions of yen 267,810 267,332	% 47.7 47.7	Yen 112,699 112,498

      (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 May 31, 2025.

   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 November 30, 2025 Fiscal period ended May 31, 2025	Millions of yen 9,503 8,602	Millions of yen (953) (2,606)	Millions of yen (7,148) (7,573)	Millions of yen 21,205 19,804

2. Forecasts of results for the fiscal period from December 1, 2025 to May 31, 2026 and the fiscal period from June 1, 2026 to November 30, 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 May 31, 2026: ¥3,521 for the fiscal period ending November 30, 2026: ¥3,522

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 November 30, 2025 2,376,318 units

      As of May 31, 2025 792,106 units

   2. Number of treasury investment units at end of period

As of November 30, 2025 - units

As of May 31, 2025 - units

(Note) Please refer to "Per Unit Information" on pages 30 and 31 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 May 31, 2026 (29th Fiscal Period) and the Fiscal Period Ending November 30, 2026 (30th Fiscal Period)" on pages 10 through 11 for information on assumptions for the forecasts.

Index

1. Asset Management Status 5

2. Financial Statements 12

   1. Balance Sheet 12

   2. Statement of Income 14

   3. Statement of Unitholders' Equity 15

   4. Statement of Cash Distributions 17

   5. Statement of Cash Flows 18

   6. Notes on Assumption of Going Concern 19

   7. Notes on Important Accounting Policies 19

   8. Notes to Financial Statements 21

   9. Changes in Total Number of Investment Units Issued 32

3. Reference Information 35

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 situation during the fiscal period under review despite the impact of U.S. trade policies.

            The environment for retail facilities showed an improving trend due to a decline in the vacancy rate and a resulting increase in rent, caused by rising demand for store openings by tenants, which was driven by increases in inbound tourism and other factors.

            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 November 30, 2025, according to data published by Miki Shoji Co., Ltd., was 2.44%, a decrease of 1.1 percentage points from May 31, 2025. Of these, the vacancy rate in Shibuya-ku remained at a low level compared to the other areas at 1.88%. The average rent per tsubo (about 3.3 square meters) in the five central wards of Tokyo as of November 30, 2025, was ¥21,308.

            Due to favorable real estate leasing market conditions and the fading of expectations for an early interest rate hike by the Bank of Japan, the J-REIT market has seen the Tokyo Stock Exchange REIT Index rise for eight consecutive months since April.

         3. Investment Performance

            The Investment Corporation has continued to maintain and improve its portfolio 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).

         4. Initiatives Regarding Sustainability

            In order to build a portfolio consisting of "real estate capable of sustaining customer demand" with the aim of maximizing medium- and long-term unitholder value, the Investment Corporation has been promoting various initiatives with its sights set on lowering environmental loads and contributing to our nearby surroundings and local communities, thereby extending beyond considerations such as location, use, size and qualities. In July 2019, as material issues that the Investment Corporation needs

            to address, we released quantitative targets encompassing a wider range of performance benchmarks from an environmental standpoint, and also clearly stated practical management policy to such ends. In addition, we are striving daily to achieve our basic objective of cutting unit energy consumption, etc. by an annual average of 1% over the medium to long term.

            In terms of work to reduce environmental impacts during the fiscal period under review, the lighting was upgraded to LED lighting at Kasumigaseki Tokyu Building. The use of environmentally friendly products that conform to the Green Procurement Standards of TLC REIT Management Inc., the Asset Manager, is expected to reduce energy consumption by approximately 70%. In addition, at Ebisu Prime Square, we repaired toilets. This will likely save water by reducing the amount of water used by approximately 55%.

            Moreover, we continue to engage in acquiring green building certifications every fiscal period. During the fiscal period under review, we have acquired the CASBEE (Comprehensive Assessment System for Built Environment Efficiency) for Real Estate certification for DECKS Tokyo Beach (store portions) (S class). A total of 38 of our properties have acquired green building certification, which amounted to 83.7% of our holdings calculated on the basis of gross floor area (as of November 30, 2025).

            In November 2025, the Investment Corporation endorsed the Japan Climate Action Summit 2025 Declaration, "Leading the Transition to a Decarbonized Society - We Will Never Stop -" announced by the Japan Climate Initiative (JCI). This declaration marks 10 years since the adoption of the Paris Agreement, and demonstrates our unwavering commitment to the ongoing challenge of decarbonization in the run-up to COP30.

            The Investment Corporation will contribute to achieving a sustainable society by engaging in such initiatives geared to the environment and society.

         5. Overview of Financing

            During the fiscal period under review, the Investment Corporation borrowed ¥19,700 million in order to cover repayment of borrowings that had come due, and worked to otherwise maintain a stable financial base through ongoing moves that have included diversifying repayment dates. As a result, as of the end of the fiscal period under review, the balance of interest-bearing debt was ¥264,848 million (borrowings of ¥244,148 million and investment corporation bonds of ¥20,700 million). The ratio of interest-bearing debt to total assets (LTV = Balance of interest-bearing debt / Total assets x 100) was 47.2% as of the end of the fiscal period under review. The long-term debt ratio and the ratio of fixed-interest debt to total interest-bearing debt were 99.2% and 88.4%, respectively.

            The credit rating the Investment Corporation has obtained as of the end of the fiscal period under review is as follows. This investment unit does not have a credit rating provided or made available for inspection by a credit rating agency or one scheduled to be provided or made available for inspection by a credit rating agency at the Investment Corporation's request.

            Credit Rating Agency	Rating	Forecast
            Japan Credit Rating Agency (JCR)	Long-term issuer rating: AA	Stable

         6. Overview of Financial Results and Distributions in the Fiscal Period Under Review

            As a result of the above-mentioned investments, operating revenue, operating profit, and ordinary profit were ¥16,538 million, ¥8,557 million, and ¥7,395 million, respectively, for the fiscal period under review, and profit was ¥7,394 million.

            As for distributions for the fiscal period under review, the decision has been made to pay distributions of profit of ¥7,397,477,934, which is the entire amount of the unappropriated retained earnings after deducting the internal reserve for the stabilization of future distributions. Consequently, distributions per investment unit resulted in ¥3,113.

      2. Outlook for the Next Fiscal Period

         1. Investment Environment for the Next Fiscal Period

            Although the accommodative financial environment operates as a support that is offsetting the impact of the trade policies of various countries, as well as other factors, the pace of growth of the Japanese economy is expected to slow. Close attention must be paid to various countries trade policies, the overseas economic and price trends impacted by those policies, and the risk of fluctuations in import prices due to geopolitical factors involving Ukraine, the Middle East, etc.

            In terms of the environment for retail facilities, rent is expected to increase due to a decrease in the vacancy rate and continued diversification of demand for store openings.

            In the rental office market in Tokyo, there are many cases of office expansions and relocations to upgraded spaces, and given the limited new supply expected in the future, we believe that the vacancy rate will remain on a declining trend. The J-REIT market continues to move upward, buoyed by favorable real estate market conditions and other drivers, and although we are wary of additional interest rate hikes by the Bank of Japan, we expect performance to be resilient due to relatively high distribution yields and robust real estate market dynamics.

            Amid this environment, the Investment Corporation will fulfill its social responsibility through further promoting sustainability initiatives, etc., and work to continuously enhance unitholder value through EPU growth by identifying opportunities for market growth in order to promote initiatives for internal growth while also realizing external growth measures such as asset replacement.

         2. Investment Policy and Developments to Be Addressed in the Next Fiscal Period

            1. Basic Policy

               The Investment Corporation's basic policies are to invest in assets, with targeted investments in Urban Retail and Tokyo Office properties; utilize the Tokyu Fudosan Holdings Group's value chain based on the comprehensive support system; and a governance structure that maximizes unitholder value.

            2. External Growth Strategy

               The Investment Corporation will invest in Urban Retail and Tokyo Office properties as a main target. It will make its investment decisions carefully, concentrating on selecting properties in excellent locations, including surrounding areas, and thoroughly considering individual factors such as use, size, specifications and other qualities of properties, and credibility and name recognition of tenants, in order to construct a competitive portfolio in the medium to long term.

               To acquire these competitive assets on an ongoing basis, the Investment Corporation will work to maintain and improve the quality of its portfolio by rigorously selecting investment assets based on the information it receives under its sponsor support agreement with Tokyu Land Corporation regarding the Investment Corporation and its support agreement with group companies in the Tokyu Fudosan Holdings Group. It will also acquire properties through the exclusive know-how and information-gathering network of the Asset Manager.

            3. Internal Growth Strategy

               The Investment Corporation will operate, manage, and refurbish its portfolio to maintain and improve the competitiveness of its facilities through a comprehensive understanding of the features of its overall portfolio and its individual assets under management, based on the unique expertise of its Asset Manager. The Investment Corporation will also seek to manage its portfolio in a stable manner and strengthen its earnings by establishing appropriate operational and management systems tailored to the specific characteristics of the assets it has invested in, and through regular and non-regular inspections by the property management company that has considerable experience in the operation and management of real estate.

               The Investment Corporation will also maintain and improve the value of its assets through its expertise in internal growth through operating and managing properties. It will maximize the competitiveness of its assets through the ongoing assistance of Tokyu Land Corporation and other support companies, which, through their face-to-face business with consumers, have rich information regarding consumer needs and developments in industries such as retail and services.

               With respect to the property management business for the assets under management, leasing support has been provided from Tokyu Land Corporation, Tokyu Land SC Management Corporation or Tokyu Community Corp.

            4. Financial Strategy

               Having a sound financial strategy in an effort to conservatively control LTV as well as make stable long-term borrowings and diversify maturities (diversifying repayment dates), the Investment Corporation will endeavor to build a stable financial base with a solid bank formation based on good relationships with major financial institutions. In addition, with the aim of diversifying means of raising funds, the Investment Corporation will issue investment corporation bonds while paying close attention to trends in financial markets. Concerning the issuance of new investment units, moreover, the Investment Corporation will prudently and flexibly carry out such issuance while paying appropriate attention to various environmental factors with the aim of achieving long-term and stable growth.

         3. Significant Subsequent Events Not applicable.

            < Reference Information >

            The Investment Corporation plans to transfer the following property in accordance with the basic asset management policy set forth in the Articles of Incorporation.

            (UR-7) Kobe Kyu Kyoryuchi 25Bankan

            Type of assets Beneficial interests in trust

            Scheduled transfer price ¥26,258 million in total

            1. ¥6,301 million (24% quasi-co-ownership interest)

            2. ¥6,564 million (25% quasi-co-ownership interest)

            3. ¥6,564 million (25% quasi-co-ownership interest)

            4. ¥6,827 million (26% quasi-co-ownership interest)

            Scheduled delivery date (1) May 28, 2026 (24% quasi-co-ownership interest)

   2. November 27, 2026 (25% quasi-co-ownership interest)

   3. May 28, 2027 (25% quasi-co-ownership interest)

   4. June 2, 2027 (26% quasi-co-ownership interest)

      Location 25 Kyomachi, Chuo-ku, Kobe, Hyogo

      Use Hotel, retail and parking lots

      Land area 3,013.68 m2

      Gross floor area 27,010.67 m2

      Structure Steel frame, steel-framed reinforced concrete / 18 floors above and 3 floors underground

      Month and year of completion January 2010 Ownership Owned

      (Note) The sale and purchase contract of beneficial interests in trust pertaining to the above falls under a forward commitment, etc. as provided in the "Comprehensive Guidelines for Supervision of Financial Instruments Business Operators, etc." by Financial Services Agency (forward commitment, etc. refers to a postdated sale and purchase contract under which payment and delivery shall be made at least one month after the conclusion of the contract, or any other contract similar thereto).

      (D) Outlook of Investment Performance

      For the fiscal period ending May 31, 2026 (29th fiscal period) and the fiscal period ending November 30, 2026 (30th fiscal period), investment performance is estimated as follows. For the assumptions used for the estimation of investment performance, please refer to "Assumptions for Forecasts of Investment Performance for the Fiscal Period Ending May 31, 2026 (29th Fiscal Period) and the Fiscal Period Ending November 30, 2026 (30th Fiscal Period)" on pages 10 through 11.

      Fiscal period ending May 31, 2026

      Fiscal period ending November 30, 2026

      Operating revenue ¥17,689 million ¥17,894 million

      Operating profit ¥9,657 million ¥9,794 million

      Ordinary profit ¥8,369 million ¥8,370 million

      Profit ¥8,369 million ¥8,370 million

      Cash distributions per unit ¥3,169 ¥3,170 Cash distributions in excess of earnings per unit ¥- ¥-

      (Note) The above estimation is determined based on certain assumptions at the time of preparing the financial statements. Due to changes in the circumstances surrounding the Investment Corporation including acquisition or disposition of properties, the trend of real estate market, etc. in the future, actual operating revenue, operating profit, ordinary profit, profit and cash distributions per unit may change. Furthermore, this estimation does not guarantee the amount of distributions.

      Assumptions for Forecasts of Investment Performance for the Fiscal Period Ending May 31, 2026 (29th Fiscal Period) and the Fiscal Period Ending November 30, 2026 (30th Fiscal Period)

      Item	Assumptions
      Period
      Investment portfolio	Kobe Kyu Kyoryuchi 25Bankan (24% quasi-co-ownership interest) is scheduled to be transferred on May 28, 2026, and the total number of properties after said scheduled transfer date is assumed to be 45 properties. Kobe Kyu Kyoryuchi 25Bankan (25% quasi-co-ownership interest) is scheduled to be transferred on November 27, 2026, and the total number of properties after said scheduled transfer date is assumed to be 45 properties.
      Operating revenue
      Operating expenses
      Non-operating expenses

      • 29th fiscal period (December 1, 2025 to May 31, 2026) (182 days)

      • 30th fiscal period (June 1, 2026 to November 30, 2026) (183 days)

      • Our forecasts of investment performance take into account the following property dispositions associated with the 45 properties that the Investment Corporation holds at present (the "Assets Currently Held") and three silent partnership equity interests.

      • 29th fiscal period (December 1, 2025 to May 31, 2026)

      • 30th fiscal period (June 1, 2026 to November 30, 2026)

      • Our forecasts, however, may change due to any changes to the composition of our investment portfolio.

      • We have calculated our real estate leasing business revenues from the Assets Currently Held taking into account the relevant lease agreements effective as of today, market trends, etc.

      • Operating revenue is based on our assumption that there will be no delinquencies or non-payment of rents by tenants.

      • Expenses related to leasing business (other than depreciation), which are our principal operating expenses, were calculated based on the historical information and upon considering variable factors.

      • In general, property tax and city planning tax of properties acquired are settled at the time of acquisition between the former owner (seller) and the purchaser based on their respective periods of ownership in relation to the relevant tax year. However, any of these taxes allocated to the purchaser are not expensed at the time of acquisition because they are treated as a part of the acquisition cost for accounting purposes. For property tax and city planning tax, ¥1,557 million and ¥1,579 million for the Assets Currently Held will be expensed in the fiscal period ending May 31, 2026 (29th fiscal period) and in the fiscal period ending November 30, 2026 (30th fiscal period), respectively.

      • Repair and maintenance expenses of buildings are estimated at the amount required for each of the fiscal periods based on the medium- and long-term repair and maintenance plans formed by the Asset Manager. However, the actual repair and maintenance expenses for the fiscal periods may significantly differ from the estimates since (i) an unforeseeable event may cause serious damage to a building requiring emergent repair expenditure, (ii) in general, amounts vary according to the fiscal period, and (iii) certain types of repair and maintenance expenses are not required in every fiscal period.

      • We calculate depreciation expenses (including incidental expenses) by the straight-line method, assuming ¥1,725 million and ¥1,705 million for the 29th fiscal period ending May 31, 2026 and the 30th fiscal period ending November 30, 2026, respectively.

      • We expect interest expense and other borrowing-related expenses of ¥1,302 million for the fiscal period ending May 31, 2026 (29th fiscal period) and ¥1,442 million for the fiscal period ending November 30, 2026 (30th fiscal period).

      Item	Assumptions
      Interest-bearing debt	¥264,848 million (borrowings of ¥244,148 million and investment corporation bonds of ¥20,700 million). LTV = Balance of interest-bearing debt / Total assets × 100
      Units
      Cash distributions per unit	accompanying changes in tenants, and unexpected maintenance and repairs.
      Cash distributions in excess of earnings per unit	purposes.
      Other	real estate markets.

      • As of today, the Investment Corporation has a balance of interest-bearing debt of

      • We assume that there will be refinancing of all interest-bearing debt due by the end of the fiscal period ending May 31, 2026 (29th fiscal period) and the fiscal period ending November 30, 2026 (30th fiscal period) (29th fiscal period: short-term borrowings of ¥1,998 million, long-term borrowings of ¥16,820 million and investment corporation bonds of ¥2,000 million; 30th fiscal period: long-term borrowings of ¥15,500 million).

      • We assume the LTV ratios as of May 31, 2026 and November 30, 2026 are both to be approximately 47%.

      • The LTV ratio is obtained by the following formula:

      • The number is based on our assumption of total of 2,376,318 units issued as of today. We assume that there will be no changes in number of investment units before the end of the 30th fiscal period (November 30, 2026).

      • The cash distributions per unit for the 29th fiscal period ending May 31, 2026 and the 30th fiscal period ending November 30, 2026 have been calculated in accordance with the total projected number of investment units issued as of the end of each of the fiscal periods which is 2,376,318 units.

      • Cash distributions (cash distributions per unit) are calculated based on the cash distribution policy stipulated in our Articles of Incorporation.

      • In order to distribute stable dividends over the long term, assumptions were made for the calculation that ¥352 per unit will be retained as part of gain on sale of real estate properties in the fiscal period ending May 31, 2026 (29th fiscal period) and the fiscal period ending November 30, 2026 (30th fiscal period), respectively.

      • The cash distributions per unit may change due to various factors, including changes to the composition of our investment portfolio, changes in rental revenues

      • Among cash distributions in excess of earnings, we currently do not anticipate distributions deemed as distributions on reduction of unitholders' capital for tax

      • We assume that there will be no amendments in legislation, taxation, accounting standards, listing regulations or regulations of the Investment Trusts Association of Japan that affect the above forecasts.

      • We assume that there will be no material changes in general economic conditions or

2. Financial Statements

   1. Balance Sheet

(Unit: Thousands of yen)

As of May 31, 2025 As of November 30, 2025

Assets

(Unit: Thousands of yen)

As of May 31, 2025 As of November 30, 2025

Liabilities

Current liabilities

Unitholders' equity

Deduction from unitholders' capital

Operating expenses

1. Statement of Unitholders' Equity

   Previous fiscal period (From December 1, 2024 to May 31, 2025)

   (Unit: Thousands of yen)

   	Unitholders' equity
   	Unitholders' capital				Surplus
   	Unitholders' capital	Deduction from unitholders' capital		Unitholders' capital, net	Voluntary retained earnings
   		Other deduction from unitholders' capital	Total deduction from unitholders' capital		Reserve for tax purpose reduction entry	Total voluntary retained earnings
   Balance at beginning of period	270,963,556	(11,999,491)	(11,999,491)	258,964,065	1,703,957	1,703,957
   Changes during period
   Reversal of reserve for tax purpose reduction entry					(620,935)	(620,935)
   Dividends of surplus
   Profit
   Net changes in items other than unitholders' equity
   Total changes during period	-	-	-	-	(620,935)	(620,935)
   Balance at end of period	*1 270,963,556	(11,999,491)	(11,999,491)	258,964,065	1,083,022	1,083,022

   (Unit: Thousands of yen)

   	Unitholders' equity			Valuation and translation adjustments		Total net assets
   	Surplus		Total unitholders' equity	Deferred gains or losses on hedges	Total valuation and translation adjustments
   	Unappropriated retained earnings (undisposed loss)	Total surplus
   Balance at beginning of period	7,116,032	8,819,990	267,784,056	438	438	267,784,494
   Changes during period
   Reversal of reserve for tax purpose reduction entry	620,935	-	-			-
   Dividends of surplus	(7,366,585)	(7,366,585)	(7,366,585)			(7,366,585)
   Profit	6,914,572	6,914,572	6,914,572			6,914,572
   Net changes in items other than unitholders' equity				(438)	(438)	(438)
   Total changes during period	168,921	(452,013)	(452,013)	(438)	(438)	(452,451)
   Balance at end of period	7,284,954	8,367,976	267,332,042	-	-	267,332,042

   Current fiscal period (From June 1, 2025 to November 30, 2025)

   (Unit: Thousands of yen)

   	Unitholders' equity
   	Unitholders' capital				Surplus
   	Unitholders' capital	Deduction from unitholders' capital		Unitholders' capital, net	Voluntary retained earnings
   		Other deduction from unitholders' capital	Total deduction from unitholders' capital		Reserve for tax purpose reduction entry	Total voluntary retained earnings
   Balance at beginning of period	270,963,556	(11,999,491)	(11,999,491)	258,964,065	1,083,022	1,083,022
   Changes during period
   Dividends of surplus
   Profit
   Total changes during period	-	-	-	-	-	-
   Balance at end of period	*1 270,963,556	(11,999,491)	(11,999,491)	258,964,065	1,083,022	1,083,022

   (Unit: Thousands of yen)

   	Unitholders' equity			Total net assets
   	Surplus		Total unitholders' equity
   	Unappropriated retained earnings (undisposed loss)	Total surplus
   Balance at beginning of period	7,284,954	8,367,976	267,332,042	267,332,042
   Changes during period
   Dividends of surplus	(6,915,877)	(6,915,877)	(6,915,877)	(6,915,877)
   Profit	7,394,561	7,394,561	7,394,561	7,394,561
   Total changes during period	478,684	478,684	478,684	478,684
   Balance at end of period	7,763,638	8,846,660	267,810,726	267,810,726

2. Statement of Cash Distributions

Proceeds from leasehold and guarantee deposits received in trust

965,727 901,809

Net cash provided by (used in) investing activities (2,606,240) (953,783)

Cash flows from financing activities

1. Notes on Assumption of Going Concern Not applicable.

2. Notes on Important Accounting Policies

   1. Standard and method for valuation of assets	Other securities Securities without market value. Cost method through moving-average method As for silent partnership equity interests, the method of incorporating the amount equivalent to equity interests corresponding to net amount of gain or loss from silent partnership is adopted.
   2. Method of depreciation of non-current assets	The useful lives of major property, plant and equipment are listed below. Buildings 2 to 70 years Structures 2 to 66 years Machinery and equipment 2 to 39 years Tools, furniture and fixtures 2 to 15 years Internal use software is amortized by the straight-line method over the expected useful life (5 years).
   3. Accounting method for deferred assets	The full amount is recorded as expenses when incurred. Amortized by the straight-line method over the period until maturity.

   1. Property, plant and equipment (including trust assets) The straight-line method is used.

   2. Intangible assets

   3. Long-term prepaid expenses The straight-line method is used.

   1. Investment unit issuance expenses

   2. Investment corporation bond issuance costs

   4. Accounting for income and expenses	Details of major performance obligations and typical timing of satisfying the performance obligations (timing when revenue is recognized) with regard to the Investment Corporation's revenue from contracts with customers are as follows. For sale of real estate properties, revenue is recorded at the time when the buyer, a customer, obtains control of the real estate property, etc., by fulfilling the delivery obligation set forth in the agreement for the sale of the real estate property. For utilities income, revenue is recorded according to supply of electricity, water, etc. to the tenant, a customer, based on the contract for lease of the real estate property, etc. and any accompanying agreement. Of utilities income, for such income for which the Investment Corporation is considered to be an agent, the net amount of the amount received as charges for electricity, gas, etc. supplied by other parties less the amount paid to the other parties is recognized as revenue. For property tax, city planning tax, depreciable asset tax for real properties held, the amount of tax levied corresponding to the calculation period is recorded as expenses related to leasing business. The settlement money for property tax that is paid to the disposing entity for acquisition of real properties (so-called "amount equivalent to property tax") is not recorded as expenses related to leasing business but included in the acquisition costs for the related properties. There is no amount equivalent to property tax included in acquisition cost for properties for the current fiscal period.
   5. Hedge accounting	Deferred hedge accounting is applied. For interest rate swaps that satisfy the requirements for special treatment, special treatment is applied. Hedging instruments: Interest rate swaps transactions Hedged items: Long-term borrowings Based on the management policy of financial market risks, the Investment Corporation makes interest rate swaps for the purpose to hedge risks set forth in the Articles of Incorporation of the Investment Corporation. The Investment Corporation assesses hedge effectiveness by comparing the cumulative total changes in the cash flows of the hedged items with those of the hedging instruments, and then verifying the ratio of the changes in both amounts. However, hedge effectiveness is deemed to have been ensured with respect to interest rate swaps that satisfy the requirements for special treatment.
   6. Scope of cash (cash and cash equivalents) in the statement of cash flows	Cash and cash equivalents include cash on hand, cash in trust, demand deposits, deposits in trust, and highly liquid short-term investments that are readily convertible, bear little risk in price fluctuations, and mature within three months of the date of acquisition.

   1. Accounting for income

      1. Sale of real estate properties

      2. Utilities income

   2. Property-related taxes

   1. Hedge accounting

   2. Hedging instruments and hedged items

   3. Hedging policy

   4. Method of assessing hedge effectiveness

   7. Other matters related to the preparation of financial statements

   With regard to beneficial interests in trust with real estate, etc. in holding as trust asset, all assets and liabilities as well as all revenue and expense items associated with all trust assets are accounted for under the respective account items of the balance sheet and statement of income. Of the trust assets accounted for under the respective account items, the following items with significance are separately indicated on the balance sheet.

   1. Accounting method for beneficial interests in trust with real estate, etc. as trust asset

      1. Cash and deposits in trust

      2. Buildings in trust; structures in trust; machinery and equipment in trust; tools, furniture and fixtures in trust; land in trust; construction in progress in trust; and land leasehold interests in trust

      3. Leasehold and guarantee deposits received in trust

   2. Accounting method for consumption tax and local consumption tax Consumption taxes unqualified for deduction for tax purposes for non-current assets, etc. are included in acquisition cost for each asset.

3. Notes to Financial Statements

1. Commitment Line Contracts

The Investment Corporation has the commitment line contracts with three of the banks with which it does business.

Total amount specified in the commitment line contracts

As of May 31, 2025 As of November 30, 2025

¥21,000,000 thousand ¥21,000,000 thousand

Loan balance ¥1,998,000 thousand ¥1,998,000 thousand

Net balance ¥19,002,000 thousand ¥19,002,000 thousand

*2. Minimum Net Assets Stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations

As of May 31, 2025 As of November 30, 2025

¥50,000 thousand ¥50,000 thousand

*1. Breakdown of Profit (Loss) From Real Estate Leasing Business

Previous fiscal period (From December 1, 2024

to May 31, 2025)

(Unit: Thousands of yen)

Current fiscal period (From June 1, 2025

to November 30, 2025)

A.

Real estate leasing business revenues

Leasing business revenue

Total real estate leasing business revenues

B.

Real estate leasing business expenses

Expenses related to leasing business

15,875,497 16,492,688

C.

*2. Transactions With Major Unitholders

Previous fiscal period

(Unit: Thousands of yen) Current fiscal period

Operating transactions

(From December 1, 2024

to May 31, 2025)

(From June 1, 2025

to November 30, 2025)

Operating revenue 2,487,467 1,778,661

*1. Reconciliation Between Cash and Cash Equivalents at End of Period and the Amount on the Balance Sheet

1. Matters Regarding Financial Instruments

   1. Policy for Financial Instruments

      The Investment Corporation raises funds by borrowing, issuing investment corporation bonds, or issuing investment units for the purpose of acquiring real estate-related assets and repaying interest-bearing debt.

      When raising funds, the Investment Corporation aims to sustain stable financing capability for a long time at low cost by enhancing its capital adequacy and maintaining conservative interest-bearing debt, looking for attributes such as extended borrowing periods for interest-bearing debt, fixed interest rates, and diversified due dates to ensure financial stability and avoid the risk of interest-rate hikes.

      We also invest temporary excess funds in deposits in general, taking safety and liquidity, etc. into account and carefully considering the interest-rate environment and our cash management.

      We may carry out derivatives transactions for the purpose of hedging the interest-rate risk of borrowings and other risks, but do not engage in speculative transactions.

   2. Content and Risks of Financial Instruments and Risk Management System

      As the excess funds of the Investment Corporation are invested in deposits, they are exposed to credit risks such as the insolvency of the financial institutions in which the excess funds are deposited. However, we deposit excess funds carefully by limiting the period of deposits to the short term, taking safety and liquidity, etc. into account and carefully considering the financial environment and our cash management.

      Borrowings and investment corporation bonds are mainly for the purpose of acquiring real estate and refinancing of existing borrowings. Leasehold and guarantee deposits received are deposits provided by tenants. Borrowings, investment corporation bonds, leasehold and guarantee deposits received are exposed to liquidity risks at the time of repayment, redemption or refund. However, these risks are managed through management of liquidity in hand by preparing a monthly funding plan, efforts to reduce liquidity risk on borrowings and investment corporation bonds by diversifying repayment periods, etc., and other means.

      Floating-rate borrowings are also exposed to the risk of fluctuations in interest rates. However, these risks are managed through derivative transactions (interest rate swaps) as hedging instruments in certain floating-rate borrowings.

      Investment securities are investments in a silent partnership, and they are exposed to the credit risk of the issuer, the risk of fluctuation of value of its real estate property, and the risk of fluctuations in the interest

      rates. Therefore, we periodically review the issuer's financial condition and other relevant factors with regard to investment securities.

   3. Supplemental Remarks on Fair Values of Financial Instruments

   As certain assumptions are made in calculating the fair value of financial instruments, if different assumptions are used, these values could vary. Furthermore, the contract amounts related to derivative transactions, etc. stated in "Notes on Derivative Transactions" on pages 25 and 26 should not be considered indicative of the market risk associated with derivative transactions.

2. Matters Regarding Fair Values of Financial Instruments

   Carrying amounts, fair values, and the differences between the two values as of May 31, 2025, are as shown below. Silent partnership equity interests are not included in the following table. (Note 2) Notes on "cash and deposits," "cash and deposits in trust" and "short-term borrowings" are omitted, because they are settled in cash and in a short time and therefore the fair value approximates the book value. A note on "leasehold and guarantee deposits received in trust" is omitted because it is immaterial.

   (Unit: Thousands of yen)

   	Carrying amount	Fair value	Difference
   (1) Current portion of investment corporation bonds	2,000,000	1,940,374	(59,625)
   (2) Current portion of long-term borrowings	36,520,000	36,495,777	(24,222)
   (3) Investment corporation bonds	18,700,000	17,799,784	(900,215)
   (4) Long-term borrowings	205,630,000	201,532,030	(4,097,969)
   Total liabilities	262,850,000	257,767,968	(5,082,031)
   Derivative transactions	-	-	-

   Carrying amounts, fair values, and the differences between the two values as of November 30, 2025, are as shown below. Silent partnership equity interests are not included in the following table. (Note 2) Notes on "cash and deposits," "cash and deposits in trust" and "short-term borrowings" are omitted, because they are settled in cash and in a short time and therefore the fair value approximates the book value. A note on "leasehold and guarantee deposits received in trust" is omitted because it is immaterial.

   (Unit: Thousands of yen)

   	Carrying amount	Fair value	Difference
   (1) Current portion of investment corporation bonds	2,000,000	1,987,046	(12,953)
   (2) Current portion of long-term borrowings	32,320,000	32,303,514	(16,485)
   (3) Investment corporation bonds	18,700,000	17,470,047	(1,229,952)
   (4) Long-term borrowings	209,830,000	203,928,436	(5,901,563)
   Total liabilities	262,850,000	255,689,044	(7,160,955)
   Derivative transactions	-	-	-

   (Note 1) Measurement Methods for Fair Values of Financial Instruments Liabilities

   1. Current portion of investment corporation bonds, (3) Investment corporation bonds

      These fair values are determined by discounting the total of principal and interest at a rate taking into account the remaining period and credit risk of the said investment corporation bonds.

   2. Current portion of long-term borrowings, (4) Long-term borrowings

These fair values are determined by discounting the total of principal and interest at the rate assumed when a new loan is made corresponding to the remaining period. The book value is used as the fair

value of those borrowings with floating interest rate, given that the fair value is almost the same as the book value, as their interest rates are reviewed on a short-term interval to reflect market interest rates (however, for long-term borrowings with floating interest rate to which special treatment for interest rate swaps is applied, the fair value is the value calculated by discounting the sum of principal and interest, which are treated in combination with the said interest rate swap, at a reasonable rate estimated for a similar new loan).

Derivative transactions

Please refer to "Notes on Derivative Transactions" on pages 25 and 26.

(Note 2) Silent Partnership Equity Interests

For silent partnership equity interests, the Investment Corporation has applied the treatment specified in Paragraph 24-16 of the "Implementation Guidance on Accounting Standard for Fair Value Measurement" (ASBJ Guidance No. 31, June 17, 2021), and does not provide matters set forth in Paragraph 4 (1) of the "Implementation Guidance on Disclosures about Fair Value of Financial Instruments" (ASBJ Guidance No. 19, March 31, 2020) in notes. For these investments, the carrying amount on the balance sheet is ¥1,624,008 thousand.

(Note 3) Expected Amounts of Repayment of Borrowings and Investment Corporation Bonds After the Account Closing Date (May 31, 2025)

(Unit: Thousands of yen)

Expected Amounts of Repayment of Borrowings and Investment Corporation Bonds After the Account Closing Date (November 30, 2025)

(Unit: Thousands of yen)

1. Derivative Transaction to Which Hedge Accounting Is Not Applied (As of May 31, 2025)

   Not applicable.

   (As of November 30, 2025) Not applicable.

2. Derivative Transaction to Which Hedge Accounting Is Applied

(As of May 31, 2025)

The following table shows contract amount or principal amount, etc. set forth in the contract as of the account closing date by method of hedge accounting.

(Unit: Thousands of yen)

(As of November 30, 2025)

The following table shows contract amount or principal amount, etc. set forth in the contract as of the account closing date by method of hedge accounting.

(Unit: Thousands of yen)

* Interest rate swap transactions to which special treatment is applied are accounted for as an integral part of long-term borrowings, a hedged item. Thus, their fair values are included in the fair value of long-term borrowings. (Please refer to the preceding "Notes on Financial Instruments, 2. Matters Regarding Fair Values of Financial Instruments, (Note 1) Liabilities (4)" on pages 24 and 25.)

Reconciliation of Significant Difference Between Effective Statutory Tax Rate and Effective Income Tax Rate After Application of Tax Effect Accounting

deductibles

of tax effect accounting

1. Parent Company and Major Corporate Unitholders

   Previous fiscal period (From December 1, 2024 to May 31, 2025)

   Attribute	Name	Address	Share capital or investment in capital (Millions of yen)	Business or occupation	Percentage of voting rights owning (owned)	Relationship		Transaction	Transaction amount (Thousands of yen)	Account title	Balance at end of period (Thousands of yen)
   						Interlocking officers, etc.	Business relationship
   Major unitholder	Tokyu Land Corporation	21-1, Dogenzaka 1-chome, Shibuya-ku, Tokyo	57,551	Real estate business	12.52%	None	Major unitholder, and rent and management of properties	Receipt of leasehold and guarantee deposits	578,039	Leasehold and guarantee deposits received in trust	3,626,873
   								Refund of leasehold and guarantee deposits received	30,101
   								Rental revenues, etc.	2,487,467	Operating accounts receivable	180,055
   										Advances received	62,497

   (Note 1) Of the amounts above, the transaction amount does not include consumption taxes, and the balance at end of period includes consumption taxes.

   (Note 2) The transaction terms are based on current market practices.

   Current fiscal period (From June 1, 2025 to November 30, 2025)

   Attribute	Name	Address	Share capital or investment in capital (Millions of yen)	Business or occupation	Percentage of voting rights owning (owned)	Relationship		Transaction	Transaction amount (Thousands of yen)	Account title	Balance at end of period (Thousands of yen)
   						Interlocking officers, etc.	Business relationship
   Major unitholder	Tokyu Land Corporation	21-1, Dogenzaka 1-chome, Shibuya-ku, Tokyo	57,551	Real estate business	12.71%	None	Major unitholder, and rent and management of properties	Receipt of leasehold and guarantee deposits	263,652	Leasehold and guarantee deposits received in trust	2,276,215
   								Refund of leasehold and guarantee deposits received	1,614,310
   								Rental revenues, etc.	1,778,661	Operating accounts receivable	132,294
   										Advances received	61,254

   (Note 1) Of the amounts above, the transaction amount does not include consumption taxes, and the balance at end of period includes consumption taxes.

   (Note 2) The transaction terms are based on current market practices.

2. Associates, Etc.

   Previous fiscal period (From December 1, 2024 to May 31, 2025) Not applicable.

   Current fiscal period (From June 1, 2025 to November 30, 2025) Not applicable.

3. Sister Companies, Etc.

Previous fiscal period (From December 1, 2024 to May 31, 2025)

(Note 1) Of the amounts above, the transaction amount does not include consumption taxes, and the balance at end of period includes consumption taxes.

(Note 2) The transaction terms are based on current market practices.

Current fiscal period (From June 1, 2025 to November 30, 2025)

(Note 1) Of the amounts above, the transaction amount does not include consumption taxes, and the balance at end of period includes consumption taxes.

(Note 2) The transaction terms are based on current market practices.

The Investment Corporation holds Urban Retail and Tokyo Office properties, etc. in Tokyo and other regions for rental revenue. The carrying amounts on the balance sheet, changes during the fiscal period, and fair values of investment and rental properties are as follows.

(Unit: Thousands of yen)

(Note 1) The carrying amount on the balance sheet is the acquisition cost less accumulated depreciation. (Note 2) The main reason for the decrease in the current fiscal period is the provision of depreciation worth

¥1,632,098 thousand.

(Note 3) The fair value at end of period is the appraisal value provided by an outside real estate appraiser.

The profit/loss concerning investment and rental properties for the current fiscal period is indicated under "Notes to Statement of Income."

1. Information on Disaggregation of Revenue From Contracts With Customers Previous fiscal period (From December 1, 2024 to May 31, 2025)

(Unit: Thousands of yen)

* Leasing business revenue, etc. that is subject to ASBJ Statement No. 13 "Accounting Standard for Lease Transactions" and transfer of real estate properties, etc. that is subject to Transferred Guidance No.10 "Practical Guidelines on Accounting by Transferors for Derecognition of Real Estate Securitized by means of Special Purpose Companies" are not subject to the Accounting Standard for Revenue Recognition, and therefore are not included in the above amount. Major revenue from contracts with customers is income from sale of real estate properties and utilities income.

Current fiscal period (From June 1, 2025 to November 30, 2025)

(Unit: Thousands of yen)

* Leasing business revenue, etc. that is subject to ASBJ Statement No. 13 "Accounting Standard for Lease Transactions" and transfer of real estate properties, etc. that is subject to Transferred Guidance No.10 "Practical Guidelines on Accounting by Transferors for Derecognition of Real Estate Securitized by means of Special Purpose Companies" are not subject to the Accounting Standard for Revenue Recognition, and therefore are not included in the above amount. Major revenue from contracts with customers is income from sale of real estate properties and utilities income.

(Note 1) 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 and basic earnings per unit are calculated as if the investment unit split had occurred at the beginning of the fiscal period ended May 31, 2025.

(Note 2) Basic earnings per unit is calculated by dividing profit by the day-weighted average number of investment units for the period (previous fiscal period 2,376,318 units; current fiscal period 2,376,318 units). Diluted earnings per unit is not stated, as there is no potential investment unit.