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.
　My name is Momoko Sasaki, and I was appointed Exective Director of TOKYU REIT on May 1, 2025. We appreciate your continued guidance and encouragement, as we will make utmost efforts for the development of TOKYU REIT.
　I hereby report our operating environment and results for the fiscal period ended July 2025.
　Starting with external growth, we implemented the first installment for the disposition of TOKYU REIT Toranomon Building, which is to be conducted across three financial periods, and recorded a ¥1,986 million gain on sale of real estate, etc. as well as a ¥1,125 million provision of reserve for reduction entry of replaced property. 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. As for financial and capital policies, we implemented the acquisition and cancellation of ¥3 billion of our own investment units using the funds from sales. Additionally, the investment unit price continued to outperform the TSE REIT Index thanks to the additional acquisition of investment units by the sponsor. The P/NAV ratio improved significantly and reached a ratio of 0.88 times greater at the end of the period ended July 2025 (0.16 pts improvement from the beginning of the fiscal period ended July 2025).
　Operating income was ¥5,348 million (an increase of ¥176 million period over period), net income was ¥4,882 million (an increase of ¥176 million period over period), and net income per unit was ¥5,027 (an increase of ¥215 period over period) for the fiscal period ended July 2025. The distribution per unit will be ¥4,000 (a decrease of ¥2 period over 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 January 2026, we expect to record a gain on sale of real estate, etc. due to the decision to implement the second installment for the disposition of TOKYU REIT Toranomon Building and to dispose of TOKYU REIT Shimokitazawa Square, and net income per unit is forecast to be ¥5,279 (an increase of ¥252 period over period). We are planning a distribution per unit of ¥4,000 (the same amount as the previous fiscal period) after provision and partial reversal of reserve for reduction entry of replaced property. 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 ¥5,643 (an increase of ¥364 period over period). We are planning a distribution per unit of ¥4,000 (the same amount as the previous fiscal period) after the provision and partial reversal of reserve for reduction entry of replaced property.
　Continuing on, in order to achieve the “Adjusted EPS” medium-term target of ¥3,500, defined as 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.

September 2025