Kazuyoshi Kashiwazaki
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 to us.
 I hereby report our operating environment and results for the fiscal period ended July 2021.
 First, concerning the impact of COVID-19, we have completed a round of responding to requests for rent reduction or exemption, and decrease in revenue stood at ¥11 million for the fiscal period ended July 2021, which is less than the initial forecast by ¥77 million. In order to secure stable rent revenue in the future, we will promote responding to tenants that aims to realize long-term, fixed contracts.
 In the fiscal period ended July 2021, revenue from property leasing increased by ¥213 million from the previous fiscal period and NOI from property leasing increased by ¥221 million from the previous fiscal period due to the acquisition of Hulic Shibuya Miyashita Koen Building, the full-period contribution of OKI Business Center No. 5 and STYLIO FIT Musashikosugi, acquired in the previous fiscal period and others. However, with the absence of gain on sale of real estate of ¥764 million from the disposal of OKI System Center (land with leasehold interest) posted in the previous fiscal period, operating income was ¥3,981 million (decrease of ¥557 million from the previous fiscal period), net income was ¥3,540 million (decrease of ¥543 million from the previous fiscal period) and net income per unit was ¥3,621 (decrease of ¥555 from the previous fiscal period). Distribution per unit will be ¥3,621 (decrease of ¥139 from the previous fiscal period).
 Positioning ESG (Environment, Social and Governance) and SDGs (Sustainable Development Goals) as important management issues, TOKYU REIT and Tokyu REIM have promoted identification of material issues (materiality) and ESG initiatives in various fields. During the fiscal period ended July 2021, we started to use 100% renewable energy at 23 properties under management of TOKYU REIT from August 2021 to promote lowering of carbon emissions. Through this initiative, we expect to eliminate 96.1% of greenhouse gas emissions from the use of electricity at TOKYU REIT’s properties. TOKYU REIT and Tokyu REIM will continue to press ahead with initiatives for realizing a sustainable society.
 With regard to the next fiscal period onward, the extension work at Tokyu Toranomon Building is expected to contribute to lower revenue from the fiscal period ending January 2022 to the fiscal period ending July 2022, but given the gain on sale of real estate of Daikanyama Forum, Shonan Mall Fill (land with leasehold interest) and OKI System Center (land with leasehold interest) in the fiscal period ending January 2022 and of OKI System Center (land with leasehold interest) in the fiscal period ending July 2022 as well as a partial reversal of the reserve for reduction entry, distribution per unit is projected to be ¥3,410 (decrease of ¥211 from the previous fiscal period) for the fiscal period ending January 2022 and ¥3,400 (decrease of ¥10 from the previous fiscal period) for the fiscal period ending July 2022.
 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.

September 2021