MHR Announces Forecast for the Fiscal Period Ending January 2022 (PDF：98KB)

Operating Revenue

Operating Income

Ordinary Income

Net Income

Dividend per Unit

(excluding dividend in excess of earnings)

Dividend in Excess of Earnings per Unit

Thirty-first fiscal period ending January 2022

9,899 million yen

6,163 million yen

5,579 million yen

5,577 million yen

2,910 yen

- yen

Operating Revenue

Operating Income

Ordinary Income

Net Income

Dividend per Unit

(excluding dividend in excess of earnings)

Dividend in Excess of Earnings per Unit

Twenty-ninth fiscal period ending January 2021

9,826 million yen

6,160 million yen

5,558 million yen

5,557 million yen

2,900 yen

- yen

Thirtieth fiscal period ending

July 2021

9,874 million yen

6,170 million yen

5,577 million yen

5,576 million yen

2,910 yen

- yen

Item

Assumptions

Accounting

Period

Thirty-First Fiscal Period: August 1, 2021 - January 31, 2022 (184 days)

Investment Portfolio

In addition to the currently owned 11 properties, MHR is planning the additional acquisition of a portion of Toranomon Hills Mori Tower (hereinafter, the "Asset to Be Acquired") on August 2, 2021. For details of the acquisition of the Asset to Be Acquired, please refer to the press release "MHR Announces Acquisition of Trust Beneficiary Interest in Domestic Real Estate (Toranomon Hills Mori Tower: Additional Acquisition)" separately announced today.

MHR assumes that it will acquire the Asset to Be Acquired on the anticipated acquisition date above, and that there will be no change in the investment portfolio (such as acquisitions of new properties or transfers of existing properties) until the end of the thirtieth fiscal period ending January 2022.

In actual practice, however, the forecasts are subject to change in the investment portfolio and other factors.

Operating Revenue

Rent revenue of real estate is estimated based on lease agreements, etc. effective as of today, taking into account the market environment, trends among individual tenants and other factors.

For the properties owned, MHR is planning the renewal of the fixed master lease for part of floors at Roppongi Hills Mori Tower on August 1, 2021. For details, please refer to the press release "MHR Announces Transaction with a Related Party (Mori Building Co., Ltd.) (Roppongi Hills Mori Tower)" separately announced today.

MHR assumes that there will be no delinquencies or unpaid rent by tenants.

Operating Expenses

For expenses related to the real estate leasing business, which are major operating expenses, is expected 3,420 million yen. Expenses other than those below are calculated by referring to historical figures and adjusted to reflect variable factors.

A）For property taxes, city planning taxes, etc., 755 million yen (for six months) is expected for the fiscal periods ending January 2022. Therefore, the property taxes, city planning taxes, etc. associated with Asset to Be Acquired will be calculated at the time of acquisition with the seller using a prorated adjusted amount; however, MHR shall capitalize these amounts as part of the cost of the acquisition and, thus, shall not recognize them as operating expenses for the fiscal period ending January 2022.

B） For building maintenance and repairs, MHR recorded the estimated required amount for the respective fiscal periods as 83 million yen. However, please note that the actual expenses for maintenance and repairs in the respective fiscal periods may differ materially from the estimated amounts due to various reasons. For example, an unforeseeable event may cause serious damage to a building and emergency repairs may be required as a consequence. Also, maintenance and repairs are expenses that are not accrued on a regular basis and the amount of variation may vary significantly from one period to the next.

C） Depreciation and amortization, which are calculated using the straight-line method with future additional capital expenditures taken into account, are expected to be 1,085 million yen.

D） For property management fees, is expected to be 1,176 million yen.

For operating expenses other than expenses related to the real estate leasing business (asset management fee, asset custody fee, administrative service fees, etc.), is expected to be 315 million yen.

Non-Operating

Expenses

MHR expects to incur 384 million yen in interest expenses, 46 million yen in interest expenses on investment corporation bonds, and 139 million yen in borrowing expenses.

MHR expects to incur 5 million yen in amortization of investment unit issuance expenses.

Interest-Bearing Debt

MHR's balance of interest-bearing debt as of today is 184,422 million yen.

MHR assumes that it will newly borrow 7,870 million yen in August 2021 as part of the funds for the acquisition of the Asset to Be Acquired in the investment portfolio as described above.

The balance of loans payable outstanding as of today is 167,422 million yen. Of the balance, MHR assumes that 19,000 million yen of loans payable due for repayment by the end of the fiscal period ending January 2022 will be refinanced in the entire amount.

The balance of investment corporation bonds as of today is 17,000 million yen. Of the balance, MHR assumes that 2,000 million yen due for redemption by the end of the fiscal period ending January 2022 will be redeemed with issuance of the same amount of investment corporation bonds.