25th Fiscal Period(Ended Jul. 2025) Presentation Material

AEON REIT Investment Corporation

25th FP( J ul. 202 5 )

Financial Results

Presentation Material

(the Asset Manager)

AEON Reit Management Co., Ltd.

Stock code : 3292 https://www.aeon-jreit.co.jp/en/index.html

AEON MALL Narita

Table of contents

Ⅰ. 25th FP Financial Result / Forecast for 26th FP and 27th FP

Ⅱ. AEON REIT's Strengths

1. 25th FP（Jul.2025）financial summary......................................

2. 25th FP（Jul.2025）DPU ~ Actual vs Forecast analysis ~ ..............

3. Topics for this FP ~ Property acquisitions and disposals ~ .........

4. Rationale of Acquired land properties........................................

5. Topics for this FP ~ Internal growth ~...............................................

6. .Summary as of 25th FP(Jul.2025).................................................

7. Progress towards Mid-term target(Reference material） ............

8. Recent topics ~ Sustainability ~ (Reference material)...........................

9. 26th FP(Jan. 2026), 27th FP (Jul. 2026) forecast..........................

   P.5

   P.6

   P.7

   P.8

   P.9 P.10 P.11 P.12 P.14

   1. AEON REIT's Strengths ............................................................

   2. "Community Infrastructure Asset" localized successfully ...........

   3. Points of the "Community Infrastructure Asset" .....................

   4. Stability of "Community Infrastructure Asset" and their rent

   5. External growth ~ Diversification of acquisition methods ~ ............

   6. External growth ~ Selective investments backed by Pipeline Support ~ ...

   7. External growth ~ Further growth backed by Pipeline Support ~ ....

   8. Internal growth ~ Enhancing values of properties ~ ......................

   9. Financial policy ~ Stable funding ~ ...............................................

      P.25 P.26 P.27 P.28 P.29 P.30 P.31 P.32 P.33

   10. Addressing operating cost which need to be controlled P.15

   11. Construction plans for the 26th and 27th FPs............................. P.16

10. Financial policy ~ Trends of index ~ ............................................

11. Details of Distribution in excess of earnings (Reference material)

    P.34 P.35

12. Issues and measures for existing properties............................

13. Examples of future internal growth...........................................

14. Past usage of cash-on-hand........................................................

15. Utilizing cash-on-hand in this tough fundraising environment

16. Future DPU.....................................................................................

P.17 P.18 P.19 P.20 P.21

1. Risk management ~ Resilient to natural disasters ~ .....................

2. High ability of generating cash-on-hand ..................................

3. Sustainability Initiatives ..............................................................

4. Management message ................................................................

5. Notes (Ⅱ) ....................................................................................

   P.36 P.37 P.38-43

   P.44

   P.45-47

6. Notes(Ⅰ） P.22-23

Table of contents

. Appendix１ Features of AEON REIT Investment Corporation

Ⅳ. Appendix 2 Numeric data

1. 基本理念・基本方針....................................................................

2. ポートフォリオ構築方針............................................................

3. 第25期末ポートフォリオの分散状況 と関連数値 .........................

4. イオンリートの保有物件（第25期末）① .......................................

5. イオンリートの保有物件（第25期末）②.......................................

6. 上場以降の資産規模の推移及び取組み.....................................

7. 分配金とNAVの進捗....................................................................

8. 物件取得時の固都税効果の推移................................................

9. 保有海外不動産概要 ~ Jリート初海外不動産投資~ ...........................

10. 海外不動産取得スキーム............................................................

11. 保有物流施設概要.......................................................................

12. イオングループ① ~ サポート契約締結 会社の拡大~ .........................

13. イオングループ② ~ グループ概要~ .............................................

14. イオングループ③ ~ 主要な規模商業施設（開発中を含む） ~ ..............

1. Corporate philosophy and policy .............................................

2. Portfolio development policy ....................................................

3. Summary of portfolio (as of Jul. 31, 2025) ............................................

4. Properties owned by AEON REIT (as of Jul. 31, 2025) (1/2)..............

5. Properties owned by AEON REIT (as of Jul. 31, 2025) (2/2)......

6. Expansion of asset size since listing .......................................

7. Growth of DPU and NAV per unit ............................................

8. Transition of Property Tax Benefit from asset acquisition .......

9. Overview of overseas properties ..............................................

10. Schemes for acquisition of overseas properties …………….

11. Overview of logistics facilities ..................................................

12. About AEON Group (1/3) ~ Pipeline support ~ .........................

13. About AEON Group (2/3) ~ Overview of the group ~ .................

14. About AEON Group (3/3) ~ Major large-scale retail properties ~ ......

15. Notes (Ⅲ) ....................................................................................

P.49 P.50 P.51 P.52 P.53 P.54 P.55 P.56 P.57 P.58 P.59 P.60 P.61 P.62 P.63

1. Balance Sheet of 25th FP (as of Jul. 31, 2025) ...............................

2. Statements of income of 25th FP .............................................

3. Portfolio list ..................................................................................

4. Appraisal value ..............................................................................

5. Major revitalization investments with rent increase ..............

6. Revitalization investment cases ................................................

7. Transition of Repair & Maintenance and Capital expenditure

8. Performance trends of stores in the portfolio .........................

9. Average cap rate .........................................................................

10. Status of debts ……………………………………………………

11. Unit price chart .............................................................................

12. Composition of unitholders ........................................................

13. Notes (Ⅳ) ......................................................................................

14. Disclaimer .....................................................................................

P.65 P.66 P.67-68 P.69-70

P.71 P.72 P.73 P.74-75

P.76 P.77-79

P.80 P.81 P.82-84

P.85

25 th F P ( J u l . 2 0 2 5 ) F i n a n c i a l R e s u l t s P r e s e n t a t i o n M a t e r i a l

I. 25th FP Financial Result / Forecast for 26th FP and 27th FP ~ 25th FP Financial Result ~

25th FP（Jul.2025）financial summary

Both EPU and DPU were higher than expected

（Unit：million yen）

Precondition: Number of investment units issued in 25th FP 2,102,569 units）

25th FP（Jul.2025）DPU ~ Actual vs Forecast analysis ~

3,400yen

18yen

38yen

Operating revenue

+23yen

Operating Expenses

+20yen

Non-operating revenues

+8yen

Extraordi nary losses

▲31yen

+38yen

Increase in distribution in

Increase in distribution in excess of earnings (allowance for temporary difference adjustment) due to CFC taxation related to AEON MALL

Seremban 2 (Note)

3,414yen

Key Factors

Fund cost

+15yen

Increase in tax payments +7yen

Decrease in depreciation ▲7yen

48yen

3,344yen

Damage caused by the earthquake in

Noto Peninsula(Nov. 2024)and Hyuganada Sea (Jan. 2025)

3,366yen

excess of earnings (allowance for temporary difference adjustment) due to leasehold amortization etc.

3,366yen

Forecast

…… Distribution in excess of earnings (Other distribution in excess of earnings)

…… Distribution in excess of earnings (Allowance for temporary difference adjustment)

Net Income（Note1）

Actual

Number of investment units issued in the 25th FP: 2,102,569 units *The total amount may not match the posted value due to rounding.

Topics for this FP ~ Property acquisitions and disposals ~

Acquiring land as a new asset type

2

４

3

1

５

▶ Acquiring land as a new asset type that will not incur future repair costs in order to respond to changes in the external environment

Disposal of AEON MALL Yamagata-Minami

AEON MALL Yaagata-Minami

AEON REIT's policy

Transfer property to master lessee

Effects of the disposal

▶ The Disposal generated funds for investments, which can be used for properties requiring proactive investments,

▶ The Disposal gain can be used to reduce distribution in excess

of earnings

Rationale of Acquired land properties

Acquired land, with no repair cost burden, and diversified the portfolio

Topics for this FP ~ Internal growth ~

Actively engaging in initiatives to maintain/enhance competitiveness and functionality of the properties, leading to rent growth

AEON MALL Narita

▶ Conducted as part of the 25th anniversary renewal

▶ Newly added an outdoor plaza "Narisora Terrace", covering approximately 1,000㎡, by utilizing part of the ground-level parking area previously used as the "No. 4 Parking Lot", with the aim of creating a space for relaxation and interaction

▶ Events were held at the Terrace during the Golden Week holidays in 2025, contributing to strengthening the facility's ability to attract visitors.

AEON MALL Chiba-Newtown（Mall bldg., Cinema & Sports bldg.）

▶ Renovation of customer restrooms inside the mall, conducted over two periods starting from the 24th FP

▶ Wallpaper and lighting were renewed, and Japanese-style toilets were replaced with Western-style ones to create facilities that can be comfortably used by a wide range of customers

▶ In cooperation with the master lessee, the renovation was undertaken ahead of the regular renewal schedule, resulting in an increase in rent

Summary as of 25th FP (Jul. 2025)

Asset size of 53 properties (Note 1)

480.7 bn yen

Portfolio NOI yield

6.0%

3.8%

Unrealized gain (Note 2 )

+ 98.4 bn yen

(+3.1 bn yen from the end of 24th FP)

Distribution per unit

3,414 yen

(Initial forecast 3,400 yen）

NAV per unit

159,429 yen

(+1,421 yen from

the end of 24th FP)

LTV ( market value)

(Note 3)

LTV

Incl. deposits

45.7%

Excl. deposits

Incl. deposits

42.5%

37.6%

Progress towards Mid-term target (Reference material)

Stabilized DPU ~ Top Priority ~

（Note 1）

Asset size ~ Priorities ~

Long term issuer rating (JCR) ~ Priorities ~

Announcement of

Mid-term target Mid-term target

中期目 標

Mid-term target

3,600yen

3,720yen

3,390yen

Assumption at

the end of the FP

Jul. 2022

(19th FP)

Jul. 2025

(25h FP)

600.0 bn

yen

Announcement of Mid-term target

Announcement of Mid-term target

At the end of Mid-term target 25th FP

AA

中期目標公 表時点

2025年7月期…

中期目 標

2025年7月 期

（第25期 ）末

Sustainability ~ Priorities ~

Jul. 2022

2022年7月 期

（第19期 ）末

(19th FP)

Jul. 2025 (25th FP)

Jul. 2022

2022年7月 期

（第19期 ）

(19th FP)

Jul. 2025 (25th FP)

Ratio of third-party certification (Note 4)

External evaluation (GRESB Rating and MSCI ESG Ratings)

Achieved

5

Stars

5

Stars

5

Stars

5

Stars

5

Stars

5

Stars

84.9%

maintain

80% or higher

4 stars or higher

(Note 5)

Achieved

A A A

BB BB BB

3 stars or higher

中期目 標

8

(Note 5)

2021 2022 2023 2024 2025

Mid-term target

Jul. 2022 (19th FP)

Jul. 2025 (25th FP)

Mid-term target

Recent topics ~ Sustainability ~ (Reference material)

2025 MSCI ESG rating (Note 1)

Third party certifications

▶ Maintained "A" rating in the 2025 evaluation, thanks to enhanced

disclosure including the Sustainability Report and our website. Continued achievement of mid-term targets announced in Sep. 2022.

▶ Will continue initiatives to maintain and further improve evaluation.

Trend of MSCI ESG rating

Achieved

A

A

BB

BB

BB

Announced

mid-term target

2021 2022 2023 2024 2025

▶ Achieved upgrades from ★4 to the highest ★5 for AEON MALL Ota and AEON MALL Kyoto Gojo

Properties certified in 25thFP（all were re-certifications）

Ratio of certified properties (Note 4)

（Based on total leasable area as of Jul. 2025）

Mid-term

target: 80% or higher

4 stars or higher

(Note 2)

84.9％

Mid-term

target: 85% or higher

3 stars or higher

(Note 2)

88.0％

Moved up 1Rank

* THE USE BY AEON REIT INVESMTENT CORPORATION OFANY MSCI ESG RESEARCH LLC OR ITS AFFILIATES ("MSCI") DATA, AND THE USE OF MSCI LOGOS, TRADEMARKS, SERVICE MARKS OR INDEX NAMES HEREIN, DO NOT CONSTITUTE A SPONSORSHIP, ENDORSEMENT, RECOMMENDATION, OR

PROMOTION OF AEON REIT INVESTMENT CORPORATION BY MSCI. MSCI SERVICES AND DATA ARE THE PROPERTY OF MSCI OR ITS INFORMATION PROVIDERS, AND ARE PROVIDED 'AS-IS' AND WITHOUT WARRANTY. MSCI NAMES AND LOGOS ARE TRADEMARKS OR SERVICE MARKS OF MSCI. 12

25 t h F P ( J u l . 2 0 2 5 ) F i n a n c i a l R e s u l t s P r e s e n t a t i o n M a t e r i a l

1. 25th FP Financial Result / Forecast for 26th FP and 27th FP ~ Forecast for 26th FP and 27th FP ~
   
   
   26th FP(Jan. 2026), 27th FP (Jul. 2026) forecast

   Expect to maintain DPU level, despite the rise in repair & maintenance expense in

   both the 26th and 27th FPs

   （Unit：million yen）

   
   
   

   Precondition: Currency rate used for the forecast of 26th FP and 27th FP 1RM = 32.00 JPY

   Number of investment units issued in 26th FP and 27th FP 2,102,569 units 14

   Addressing operating cost which need to be controlled

   Aiming to improve income and expenditure and taking measures to achieve these repair & maintenance costs and funding cost

   	Ratio of expenses （At the end of 25th FP） (Note)	Current	Future
   Other leasing expenses （Land lease cost, etc.）	18.7％	Offset with rent	>
   Taxes	16.3％	Effectively, No burden	>
   Repair & maintenance expense	9.8％	No payment for overseas properties and land. Need to control expense for domestic properties	properties.
   Others （Depreciation, etc. ）	47.7％ （36.2％）	>	>
   Funding cost	7.4％	Cost is on the rise, due to higher interest rates	Less room to lower costs through shortening maturity and shifting to floating interest Promoting cost control as below

   • Pursue new ways of acquiring

   • Implementation of improving earnings through internal growth

   • Diversification of funding schemes.

   • Reducing the funding amount.

   15

   Construction plans for the 26th and 27th FPs

   Construction leading to rent growth ▶ Expect to secure investment returns exceeding past levels properties					in	some
   	Property name	Construction	Investment amount	Expected investment return
   	AEON MALL Narita	Parking lot & Terrace construction	¥24 mm	5.9%
   	AEON MALL Narita	Restroom renewal work	¥100 mm	5.9％
   	AEON Sagamihara SC	Large-scale renewal	¥669 mm	7.7％
   	AEON MALL Kagoshima	Inverter board installation	¥61 mm	14.4%

   As construction costs increase, aiming to improve the rent growth construction rate

   Details of construction costs with respect to

   the total construction amount

   ▶ Air conditioning related work accounts for the highest proportion of the total, at over 40％

   ▶ Revitalization investments account for about 17%.

   ▶ Once the conditions are finalized, it will contribute to business performance

   Renewal construction

   1 3

   Facility-related

   construction work

   2

   Emergency

   work

   Air-conditioning etc.

   Work to

   solidify/improve the

   Other facilities

   （Facility-related work）

   26th FP

   
   
   

   Emergency

   3 work

   
   
   

   0.3％

   Structure-

   2 related

   16.0％

   1

   27th FP

   
   
   

   3

   Emergency work 8.5％

   Structure-related 11.8％

   2

   1

   Air-conditioning 1

   related

   1

   Air-conditioning

   related

   Structure-

   related work

   ground

   Slope repair work

   Includes work

   to address changes in laws

   Other renewal work 41.7％

   42.0％

   Other renewal

   work

   33.4％

   46.3％

   Increasing trend Continuous increase, due to rising unit costs of construction, aging of properties, etc.

   Temporary increase Used to be around ¥200-300mm, mainly for air-conditioning related work, but will increase to around

   ¥500mm in the 27th FP

   Expected to arise to a certain extent Construction to comply with changes in the law (foam fire extinguishing)

   Ratio of construction that leads to rent growth（Note）

   Ratio of construction that leads to rent growth（Note）

   ▶ Due to rising unit cost of construction and aging of properties, renewal

   works are gradually increasing.

   ▶ In addition, due to urgent works such as ground improvement, total construction cost for the Investment Corporation have increased

   16.5 ％

   17.0 ％

   16

   Issues and measures for existing properties

   Will prioritize measures to improve quality of existing properties

   Negotiations regarding expenses that affect earnings

   Issues of existing properties

   Rise in construction costs due to inflation etc.

▶ While gaining investment opportunities, we can achieve an increase in rent while controlling initial costsinitial costs through consultation with the master lessee.

Expenses that affect

earnings

Rent growth

Adjust cost burden

Group policy（excerpt）

Creating incentives for customers to visit, through renewals of facilities

Reshuffling of specialty stores

Revitalization of common areas, to create

comfortable spaces and environments

More opportunities for AEON REIT to invest in

internal growth

Expecting contributes to revenue and profit growth

Approaches to Resolving the Issues

（Strengthening portfolio quality）

Examples of future internal growth

Capture the needs of master lessee, and aim to achieve rent increase through large-

scale investments

AEON Sagamihara Shopping Center

▶ Planning a large-scale renewal opening, to better address local needs in Sagamihara City, where the population continues to grow

▶ Will conduct facility construction work to change the plots/zones in each floor of the building

1F

2F

3F

after

Stores in highlighted areas will be closed / relocated due to the renewal

AEON MALL Kagoshima

Master lessee will carry out store replacements and layout changes

Relocated and expanded the Food Court to the former

children's apparel area

▶ Higher rent increase rate than previous levels

▶ Agreed with maser lessee on a rent increase, reflecting part of the cost

Past usage of cash-on-hand

Actively used abundant cash-on-hand to grow DPU

Investment Effect by Utilizing Cash-on-Hand

▶ Used cash-on-hand flexibly, mainly on investments to enhance profitability, based on our strong capability to generate around 10.5 billion yen of cashflow per year

▶ 80 ％ of investments during the past 5 years were made with the purpose of growing DPU

Ratio of profitability investments out of total（total of 16th FP～25th FP）

Investments out of total 121.2 bn yen

Capital

expenditure 13.7%

Repair &

maintenance expense 8.2%

Ratio of profitability

investments out of total

81.0 ％

Property

acquisitions 75.8%

Purchase investment units 2.2%

her

s

Utilizing cash-on-hand in this tough fundraising environment

Controlling funding costs is essential, from the perspective of future DPU

nit

Future DPU

Aiming to improve DPU while promoting investments to maintain property values

Details of the Dividend Forecast vs. Actual Difference for the 25th Period

forecast distribution per unit for the 26th and 27th periods

Initial forecast Actual

DPU

3,400yen

DPU

3,390yen

EPU

3,099yen

Measures to improve EPU to correct the deviation with DPU

▶ External growth through property acquisitions

▶ Rent increase through value-add investments

▶ Utilization of gains from the disposal

of existing properties

▶ Purchase of our own investment units

▶ Reduction of financing costs through loan repayments and changes in funding methods

▶ Enhancement of other cost management measures

etc.

EPU

2,703yen

DPU

3,350yen

Increase DPU

3,414yen

207yen Improvement

EPU

3,366yen

EPU

3,143yen

Increase

Jul 2025

(25h FP ）

Increase in revenue as of Sep. 2024 announcement

Jul 2025

(25h FP)

Results

48yen

Jan 2026

(26h FP)

forecast

• EPU ■ Deviation between DPU and EPU

Jul 2026

(27h FP)

forecast

21

Notes (Ⅰ)

（Note）The appraisal NOI yield is calculated as the appraised NOI of the newly acquired properties ÷ acquisition cost of the newly acquired properties × 100.

(Note 1) MSCI is a financial services provider based in New York, USA. MSCI provides various tools to assist in investment decision making to institutional investors around the world, including asset managers, hedge funds and pension funds. The MSCI ESG rating analyzes how well companies are managing risks related to the Environment, Social and Governance, and its 7 ratings range from the highest AAA to the lowest CCC.

(Note 2) ★４or higher refers to "4 or 5 stars in the DBJ Green Building certification", "Rank A or S in the CASBEE Real Estate Evaluation","4 or 5 stars in BELS". ★3 or higher refers to "3, 4 or 5 stars in the DBJ Green Building certification", "Rank B+, A or S in the CASBEE Real Estate Evaluation", "3, 4 or 5 stars in BELS" (as of the end of Jul. 2025)

(Note 3) For AEON MALL Hiezu, since the specifications between West and East buildings differ, results were given separately in accordance with the certification granting rules of the certification authority.

(Note 4) The ratio of properties with third party certifications is calculated by dividing the total rentable floor area of certified properties by that of all properties owned in Japan. Third party certification refers to the DBJ Green Building certification, CASBEE certification and BELS certification, etc.

（Note) Calculation is based on renovation projects scheduled in the 26th and 27th FPs that are expected to lead to rent increases. Please note that the earnings forecast and the section "Major revitalization investments with rent increases and future plans" on page P.71 only include future revitalization projects with rent increases for which the terms & conditions of the rent increase have been finalized and therefore do not match exactly.

2 5 t h F P ( J u l . 2 0 2 5 ) F i n a n c i a l R e s u l t s P r e s e n t a t i o n M a t e r i a l

1. AEON REIT's Strengths

AEON REIT's Strengths

▶ Investment in

"Community

Infrastructure Assets"

Investing in facilities responding to social changes and being supported by communities for a long time going forward.

▶ Pipeline support

Advantages of acquisition from abundant pipelines.

▶ Strong ｍaster lease agreement

Stable rent income based on Long-term and

fixed master lease.

▶ Effective floor expansion

and revitalization

Various measures aiming for strengthening competitiveness and maintaining and improving functions.

▶ Funding stability

Realization of various procurement methods

such as retail bonds and green finances.

▶ Resilience to natural disasters

Strengthening resilience to natural disasters by utilizing earthquake insurance and diversifying investments by region.

▶ Cash-on-hand generation capability Promotion of investment making use of abundant cash-on-hand generated from depreciation.

▶ Flexible use of cash-on-hand

Choosing the best option based on the situation.

▶ Aiming to achieve sustainable society and secure stable profits

for AEON REIT from mid- to long-term perspective

"Community Infrastructure Asset" localized successfully

Community Infrastructure Assets

defined by AEON REIT

▶ A community platform

offering a range of tenants that is visited by people on a daily basis.

▶ A facility that responds flexibly to changes in the needs for daily life and environment which enables continuous operation for a long time going forward.

▶ A facility essential to communities that offers a place for community development.

Reducing environment impact by

installing solar panels such as

solar carports

Prepared a lane for drivers who want to pick up items ordered on the web.

Specialty stores that meet a wide range of needs to support the affluent lifestyles of residents.

Post office, nursery school, clinic, and other tenants providing public services.

"Regi-go": The shopping style without face-to-face communication and waiting at cash register.

Smooth checkout and point management through the iAEON app

Sale of locally produced products, events for local residents, workshops, MALL walking and various other events are held.

Signed disaster-relief cooperation agreement with Ground Self-defense Force and Japan Airlines.

Balloon shelter that becomes an evacuation space in the event of a disaster.

Points of the "Community Infrastructure Asset"

Location

Demographic change /

Trade area / Traffic access / Competitive environment /

Development plan

Strength of trade area

Ex.

Trade Area

Trading area population（Note 1）

approx.

440,000

（10km area）

Traffic access

Road Traffic (Note 2)

（AEON M A LL Fukutsu）

approx.

43,000

(

Hachioji Interchange on the

Chuo Expressway Approx. 31 , 000

)

Building Facility

Parking lot / Traffic line /

Equipment friendly

to Human and Environment /

Disaster prevention base

Robustness, Convenience

Ex.

Parking lot

Average number of parking lots owned by one commercial facilit y (Note 3)

over 3,000

Disaster

prevention base

Comprehensive cooperation agreement with local government

(Note 4)

100％

(Commercial facilities in Japan)

Operation

Customer attraction /

Operating performance /

Leasing / Public features

Various incentives to visit

Ex.

Occupancy

rate

Occupancy rate of end tenants (Note 5)

98.6％

Leasing

Total number of commercial facilities owned in Japan (Note 6)

approx.

5,500

tenants

Stability of Community Infrastructure Assets and their rents

AEON REIT's strategy is to acquire the No.1 store in the region, with a rich local consumer base and the ability to adapt to environmental changes and can expected to generate stable revenue. We ensure stable revenue through lease contracts with various AEON Group companies, primarily based on fixed rents.

Tenant sales Approx. 105.5％ YoY （note 1）

Anchor tenant Other tenants

Fashion General goods

Restaurants Various services

End tenants

Tenant rent（Fixed /variable）

Operating revenue Approx. 102.6％ YoY（note 2）

Operation（AEON Group）

Rent / land rent(fixed)

Operating revenue Approx. 100.5％ YoY（note 3）

Property ownership: AEON REIT

External growth ~ Diversification of acquisition methods ~

In light of environmental changes, expand external growth opportunities and aim to advance stabilized DPU

Method

Acquisition of large-scale commercial facilities

Environment

▶ Domestic large-scale commercial facility development is on the decline

Significance

▶ Easier for stable income (due to the number of tenants, wide commercial area, etc.)

1

Ownership,

ordinary land lease

2 Fixed-term leasehold for

business purpose

Acquisition environment

▶ It used to be the main choice of development, however due to the revision of the Land and Building Lease act in 2008. the situation has changed and acquisition opportunities will decrease.

▶ Due to the legal revision, increased with newly built facilities

▶ Acquisition opportunities will

Significance of acquisition

▶ Relatively more opportunities for acquisition in the past as many facilities had been built with these type of lands

▶ Generates more cash as the facilities are relatively new

▶ Compared to ①, NOI yield tends to be relatively high

▶ As the lease period is relatively long, easier to plan for having the return from the investment

Issues and responses

Utilize distribution

▶ High investment efficiency

in terms of acquisition costs and practices.

3

Small and medium-

increase

▶ Increased possibility of acquisition

Amortization of leasehold, etc may occur

▶ Diversifying portfolio

in excess of earnings

（Distributions of allowance for temporary difference adjustments ）

Diversification in

property acquisition

sized properties,

logistics facilities, etc.

4

Dealing with property development

Land

Construction of expansion building, rebuilding, etc

by expanding support contracts

▶ Acquisition opportunities will increase due to the progress of efficient management of owned assets

▶ AEON Group promotes the use of unused space within the premises to improve the profitability of existing properties

▶ Redevelopment of aged properties will be considered

▶ Acquisition opportunities will

▶ Relatively more properties that are easier to acquire flexibly with small amount

Land

Securing stable net revenue over the long term, regardless of operating costs such as repair costs and insurance premiums related to building ownership

▶ Can expect stronger competitiveness of the entire property

▶ The lease period including existing building will be extended and will contribute to stable income

▶ Create investment opportunities including existing building

▶ Generates cash from depreciation expense as the expansion building is newly built

Issues and responses

Utilize distribution

increase

Possibility of temporary costs

in excess of earnings

（Distribution with decrease of investment capital under tax laws）

External growth ~ Selective investments backed by Pipeline Support ~

Through selective investments backed by Pipeline Support, AEON REIT acquires properties at adequate terms while maintaining the quality of the portfolio.

Ratio of acquisitions

and no. of opportunities looked at

Postponement of acquisition Acquired

Acquisitions through

one-on-one (exclusive)

transactions（Note 2）

Exclusive

transactions

100％

48%

52%

（Note 1）

（100 million yen）

7

1,583

55

150

0

180

81

204

751

866

213

515

354

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