One Reit. Inc.TSE: 3290

Presentation Material for the Sixteenth Fiscal Period (Ended Aug. 2021)

Nov 22, 2021 at 5:13 AM UTC · Issued by One Reit. Inc.

Presentation Material

for the Sixteenth FiscalPeriod

(Ended Aug. 2021)

October 15, 2021

https://one-reit.com/en/ Securities Code：3290

(Asset Management Company)

Table of Contents

1 Executive Summary

Summary of Overview of Financial Results and Earnings Forecasts	3
Management Highlights	4
Impact of COVID-19, Etc.	5
Notes (1)	7

2 Overview of Financial Results and Earnings Forecasts

Overview of Financial Results:
Sixteenth Fiscal Period (Ended Aug. 2021)	9
Factors for Change in Dividends per Unit:
Sixteenth Fiscal Period (Ended Aug. 2021)	10
Earnings Forecasts:
Seventeenth Fiscal Period (Ending Feb. 2022) and
Eighteenth Fiscal Period (Ending Aug. 2022)	11
Factors for Change in Dividends per Unit:
Seventeenth Fiscal Period (Ending Feb. 2022) and
Eighteenth Fiscal Period (Ending Aug. 2022)	12

3 Growth Strategy

Portfolio Status	14
Portfolio Management Status	16
External Growth Strategy	20
Financial Status	23

4 Efforts for ESG

5 Appendix

About the Sponsor	33
About the MONE Group	35
Features of One REIT	37
Portfolio Building Policy	39
Basic Stance of One REIT	40
Balance Sheet	41
Statement of Income	42
Portfolio List	43
Overview of Individual Properties	44
Occupancy Rate	50
Status of Rent Gap	51
Lease Business Revenue and Expenditure by Property	52
List of Appraisal Values	55
Creation of Buildings Chosen by Tenants	56
Status of Interest-Bearing Debt	57
Approach for Internal Reserves / Asset Management Fee Scheme	59
Unitholder Status	60
Investment Unit Price	61
Overview of One REIT	62
Overview of the Asset Management Company	63

One REIT, Inc. Presentation Material for the Sixteenth Fiscal Period (Ended Aug. 2021)		1

1 Executive Summary

One REIT, Inc. Presentation Material for the Sixteenth Fiscal Period (Ended Aug. 2021)		2

Summary of Overview of Financial Results and Earnings Forecasts

Executive Summary

In the Sixteenth Fiscal Period (ended August 2021), One REIT conducted replacement of several properties, including sale of the only retail facility in the portfolio, in March 2021. While dividends had been paid out with the recording of allowance for temporary difference adjustments due to a discrepancy between tax and accounting treatment in excess income occurring from recording impairment loss in the previous fiscal period, One REIT conducted reversal of the allowance for temporary difference adjustments as the discrepancy between tax and accounting treatment in excess income was eliminated as planned due to completion of delivery and settlement of properties in the Sixteenth Fiscal Period.
In the Sixteenth Fiscal Period, steady progress was also made in filling the vacancies after tenant move-outs, resulting in actual dividends per unit exceeding the forecast figures. In the Seventeenth Fiscal Period (ending February 2022), there will no longer be factors such as gain on sale of properties, but with there being the third capital increase through public offering (hereinafter "third PO") accompanied by acquisition of new properties (hereinafter "properties newly acquired upon the third PO") conducted in September 2021 among the factors, dividends per unit is forecast to be 7,190 yen.

▌Overview of Financial Results and Earnings Forecasts

▌Dividends per Unit

Initial forecast

Revised forecast

One REIT, Inc. Presentation Material for the Sixteenth Fiscal Period (Ended Aug. 2021)		3

Management Highlights (Including Third PO and Acquisition of Properties)

Executive Summary

	[Replacement of assets]	Conducted sale of a total of three properties including fab Minami-Osawa, which was the only retail facility, and the
		acquisition of three office buildings
External	[Change in investment policy]	Amended the Articles of Incorporation to make office buildings the main investment target by approval at the
growth		General Meeting of Unitholders held in May 2021
	[Third PO and acquisition of properties]	While promoting diversification of tenants and other measures to boost risk resilience, enhanced the portfolio in
		pursuit of both stability and growth potential

 Replacement of assets (March 2021)	 Change in investment policy (May 2021)
				Sale					After the change
	Property		Yushima FG	36 Sankyo	fab

	name		Building*	Building	Minami-Osawa		Assets for other uses
	Use		Office buildings	Retail facilities		10% or less
	Location		Bunkyo Ward,	Shinjuku	Hachioji City,				Investment ratio
		Tokyo	Ward, Tokyo	Tokyo				by
						property type

	*Yushima First Genesis Building							Office buildings
				Asset
									90% or more
				replacement

				Acquisition
						Investment target	Office buildings	Assets for other
	Property		D'sVARIE	MSB-21 Minami-	D'sVARIE KANDA
						uses
	name		HONGO BLDG	Otsuka Building	BLDG
			Investment ratio	90% or more	10% or less

	Use			Office buildings


	Location		Bunkyo Ward,	Toshima Ward,	Chiyoda Ward,		Primary investment	Middle-sized	－
		Tokyo	Tokyo	Tokyo		target	office buildings

Internal	Maintain a high occupancy rate by continuing operation
focused on the maintenance of occupancy rate based on the
growth
trend of supply and demand in the rental market



			Fifteenth Fiscal Period	Sixteenth Fiscal Period
			(Ended Feb. 2021)	(Ended Aug. 2021)

	Period-end occupancy rate	98.7%	99.2%

		Rent increase	¥2,748 thousand	¥3,730 thousand
	(Rent revision and tenant replacement)	/month	/month

		Rent gap (Note 1)	-14.0%	-13.4%

	•	Conducted new borrowings of 2,850 million yen due to the
Financial		replacement of assets
•	LTV is expected to be pretty much the same level even after

		the third PO

				Fifteenth Fiscal Period	Sixteenth Fiscal Period	After the third PO (Note 2)
				(Ended Feb. 2021)	(Ended Aug. 2021)
Average interest rate (Note 3)		0.632%	0.629%	0.601%
Average remaining period (Note 4)		3.70 years	3.23 years	3.57 years
LTV (Note 5)		46.0%	47.2%	47.3%
	One REIT, Inc. Presentation Material for the Sixteenth Fiscal Period (Ended Aug. 2021)			4

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