Message from Executive Director

Momoko Sasaki
Executive Director
TOKYU REIT, Inc.

　On behalf of TOKYU REIT, I would like to express my sincere appreciation to all of you, our unitholders, for your continued support and patronage.
　I hereby report our operating environment and results for the fiscal period ended January 2026.
　Starting with external growth, we implemented the second installment for the disposition of TOKYU REIT Toranomon Building, which is to be conducted across three financial periods, and the disposition of TOKYU REIT Shimokitazawa Square, and recorded a ¥2,486 million gain on sale of real estate, etc. Furthermore, in conjunction with the announcement of our financial results, a decision was made to acquire an office building, Togoshi Ginza Round Building, and a commercial facility, Tokyu Susukino Building, from the sponsor. We plan to continue utilizing the sponsor pipeline to expand our assets under management (AUM).
　With regard to internal growth, we have achieved upward rent revision or replacement at higher rent in many sections, including sections with rent higher than the market rent against the backdrop of a strong rental market. We have raised our original target of an annual rental revenue growth rate of 2% and aim to achieve 3% or higher going forward.
　As for our financial status, we worked to control borrowing costs by implementing fund procurement through borrowings with floating interest rates and partial repayment of existing borrowings in response to sharply rising interest rates. We will continue to monitor interest rate trends and strengthen our financial stability by promoting the diversification of procurement sources and methods.
　Operating income was ¥5,640 million (an increase of ¥291 million period over period), net income was ¥5,177 million (an increase of ¥295 million period over period), and net income per unit was ¥5,385 (an increase of ¥358 period over period) for the fiscal period ended January 2026. The distribution per unit will be ¥4,000 (the same amount as the previous fiscal period), with provision and partial reversal of reserve for reduction entry of replaced property.
　With regard to the upcoming fiscal periods, in the fiscal period ending July 2026, we expect to record a gain on sale of real estate, etc. due to the third installment for the disposition of TOKYU REIT Toranomon Building, and net income per unit is forecast to be ¥5,653 (an increase of ¥268 period over period). We are planning a distribution per unit of ¥4,010 (an increase of ¥10 period over period) after the provision and partial reversal of reserve for reduction entry of replaced property. In the fiscal period ending January 2027, net income per unit is planned to be ¥2,922 (a decrease of ¥2,731 period over period) due to a decrease in gain on sale of real estate, etc. We are planning a distribution per unit of ¥4,010 (the same amount as the previous fiscal period), with reversal of reserve for reduction and reserve for reduction entry of replaced property.
　Going forward, in order to achieve sustainable distribution growth with minimum distribution of ¥4,000 and the “Adjusted EPS” medium-term target of ¥3,500 (the amount obtained by deducting the gain on sale of real estate, etc. per unit from EPS and adding the amount of reversal of reserve for reduction entry of replaced property per unit), we will promote implementation of measures that contribute to the improvement of unitholder value in terms of financial and capital policies, in addition to external and internal growth.
　TOKYU REIT will continue to strive to maximize unitholder value through “investment in highly competitive properties in areas with strong growth potential.”
　TOKYU REIT greatly appreciates your continued support.

March 2026