Financial Briefing for the 30 th Fiscal Period ended February 28, April 14, 2017 Prepared by ORIX Asset Management Corporation

Transcription

1 Financial Briefing for the 30 th Fiscal Period ended February 28, 2017 April 14, 2017 Prepared by ORIX Asset Management Corporation

2 Table of Contents 1 Our Management Philosophy Future Management Tactics Our Management Philosophy 2 Management Tactics under Current Investment Environment 32 Key takeaways Our growth strategy 33 Key Takeaways 3 Improvement of Portfolio Quality 34 Results of Performance Appendix Performance Highlights 5 Financial Highlights based on Actual results 36 The Initiatives and Impacts of the Initiatives 6 P rofit and Loss S tatem ent from FP29 (Aug. 2016) to FP32 (Feb. 2018) 37 Stable growth of DPU 7 Initiatives for DPU Growth 8 Comparison between Actual Result and Previous Forecast for FP30 (Feb. 2017) 38 Comparison between Previous and New Forecasts for FP31 (Aug. 2017) 39 Drive Growth of Unitholder value 9 Comparison between Actual Results for FP29 (Aug. 2016) and FP30 (Feb. 2017) 40 Drive Growth Strategy Diversified Growth Pursuant to Environmental Changes(1) 11 Diversified Growth Pursuant to Environmental Changes(2) 12 Comparison betw een Actual Result for FP30 (Feb. 2017) and Forecast for FP31(Aug. 2017) 41 Comparison between Forecasts for FP31 (Aug. 2017) and FP32 (Feb. 2018) 42 Overview of Public Offerings for Consecutive 9 Fiscal Periods 43 Sponsor Pipeline and Our Acquisition Track Record from Sponsor 13 Disposition of Property for FP30(Feb. 2017) 44 ORIX Group s Properties 14 Portfolio Status 45 External Growth Strategy Trend of Portfolio Growth 46 Acquisitions through the Initiatives (SUNROUTE PLAZA TOKYO) 17 Portfolio Summary 47 Acquisitions through the Initiatives 18 Portfolio Map 48 Acquisitions through the Initiatives<Hotel Nikko Himeji, (Tentative)HOTEL LiVEMAX Nagoya-Sakae Annex> 19 Portfolio Data 49 Track records in Hotels and Others by ORIX Group 20 Overview of Appraisal Value 50 Internal Growth Strategy Appraisal Value List-1 51 Actual results in Internal Growth by Direct PM:Occupancy Rate and Tenant Turnover 23 Appraisal Value List-2 52 Actual results in Internal Growth by Direct PM:Rent Renewals of Existing Tenants 24 Investment Units 53 Actual results in Internal Growth:Initiatives over Tenants move-out risk 25 Environmental Efforts 54 Actual results in Internal Growth 26 Transactions with Sponsors and Compliance System 55 Financial Strategy Organization of ORIX Asset Management Corporation 56 Financial Strategy 29 Terminology (1) - (6) Financial Data 30

3 Our Management Philosophy 2 We aim for creating unitholder value by improving profitability and stability of our portfolio, reducing funding costs and increasing financial stability External Growth Strategy Various Investment opportunities as Diversified REIT Property replacement Utilization of the ORIX Synergy Asset Enhance portfolio profitability and stability Financial Strategy Reduction of financing costs Improvement of financial stability Appropriate cash management Debt Reduction of financing costs and improvement of financial stability Equity Internal Growth Strategy Flexible leasing options as Diversified REIT (Note) Direct property management Utilization of the ORIX Synergy Sustainable growth of unitholder value Note: We may seek rent growth opportunities by changing the use of our properties. e.g. inviting a retail tenant to our office space.

4 External Growth Internal Growth Financial Strategy Key Takeaways Concerns Scarce Prime Properties Risk of tenant move-out due to significant new supply of offices Risk of Interest rate rise Counter-measures against the left column Selective Investment that leverage ORIX Group s strength Bring in various growth drivers Filled vacancies after major tenants have moved out and drove to improve leasing conditions Reduce impacts of major tenants moving out by expanding Asset size and diversifying Tenants Improve financial stability Secure Borrowing Capacity for flexible property acquisition Specific initiatives Acquired hotels with scarce value from Sponsor such as SUNROUTE PLAZA TOKYO and Hotel Nikko Himeji P17-19 Diversified Growth Pursuant to Environmental Changes P11-12 Improvement of Portfolio Quality P34 Actual results in Internal Growth by Direct PM P23-26 Status in leasing of ARK Hills South Tower P25 Diversification of Tenants P25 Drive diversifying Maturity and reducing financing costs P29 Trends on LTV and Borrowing Capacity P29 3

5 Results of Performance

6 Performance Highlights 5 Asset AUM(Acquisition Price) 582, ,111 31,600 5, , ,441 Number of properties NOI yield 5.1% 5.1% 5.8% 6.2% 5.1% 5.1% Yield after depreciation 4.0% 4.0% 4.9% 6.0% 4.1% 4.1% Unrealized gain/loss 82,635 83, ,048 94,591 94,591 Balance of interestbearing liabilities LTV based on total assets Enhance portfolio profitability and stability Internal growth Increase in occupancy rate and improvement in leasing conditions - Occupancy rate in Offices hovers around 97%. (See P23) Drive improving rental terms and conditions by replacing tenants and renewing rents in offices and retail facilities. (See P23-24) External growth Continue selective investment in properties that can leverage our strengths - Made acquisitions of SUNROUTE PLAZA TOKYO (26.8 billion yen), an official hotel for one of Japan s leading theme parks, and Hotel Nikko Himeji (4.8 billion yen), No.1 full-service hotel in the area, which are very scarce and have been owned and operated by the ORIX Group for many years. (See P 17-19) Disposed of 1 office in consideration of its future competitiveness. (See P44) Key Performance Indicator End of FP 29 (Aug. 2016) Before the initiatives The initiatives Excl. Early Repayments End of FP30 Acquisition of the Disposition of the (Feb. 2017) properties property Debt After the initiatives (Early Repayments: 21,800 mil.yen) 269, ,117 26, , ,117 End of Aug (FP29) 45.5% 44.2% % 42.6% Reduce Reduction financing of financing costs costs and and increase improvement financial of stability financial stability Reduction of financing costs while increasing financial stability Ave. funding cost from 1.09% in Aug to 1.03% in Feb (See P29) After the initiatives, ratio of interest-bearing liabilities with fixed rates is 93.7% and Ave. duration to maturity is 4.4 year.(see P30) Extension of acquisition capacity for flexible property acquisition Lowered LTV based on total assets after the initiatives and increased borrowing capacity by 23.9 bil. yen. Borrowing capacity up to 50% of LTV is 94.9 bil. yen. (See P6) Equity Execute various strategies for sustainable growth of unitholder value Set aside approx bil. yen as internal reserves, which will contribute to stabilizing future DPU growth(2.74 bil. yen in total. 1,024 yen per unit) (See P6) (Unit:million yen) Sustainable growth of unitholder value FP 30 (Feb. 2017) FP 31 (Aug. 2017) FP 32 (Feb. 2018) End of Aug (FP29) 762 yen 1,847 million yen in total Forecasts at the PO in Sep Before the initiatives 2,980 yen 2,930 yen Previous financial announcement 3,000 yen (+20 yen) 2,970 yen (+40 yen) Before the intiatives 731 yen 1,847 million yen in total Before the intiatives As of this financial announcement (Apr. 14, 2017) After the initiatives 3,252 yen (Actual result) (+252 yen) 3,040 yen (Forecast) (+70 yen) - - 3,080 yen (Forecast) After the initiatives 1,024 yen 2,745 million yen in total NAV per unit in consideration of internal reserves (Note3) After the initiatives 150,841 yen 151,601 yen 156,947 yen Note 1: The initiatives collectively refer to the PO in Mar and the property acquisitions such as SUNROUTE PLAZA TOKYO and Hotel Nikko Himeji as well as the property disposition such as Toyo MK Building, funding and repayment of interest-bearing liabilities attributable to the property acquisitions. In addition, After the initiatives indicates April 14, 2017, when the financial results have been announced after the initiatives have completed. Note 2: Internal reserves per unit at the end of Aug (FP29) and before the initiatives are calculated by dividing internal reserves at the end of Aug (FP29) by the number of investment units outstanding at each time point. Internal reserves per unit After the initiatives is calculated by dividing internal reserves at the end of Feb (FP 30) by the number of investment units outstanding as of April 14, The figures are rounded down to the nearest whole number. Note 3: NAV per unit in consideration of internal reserves refers to the amount calculated by the following formula. (The sum of unitholders capital + unrealized gain/loss + internal reserves) / Number of investment units outstanding DPU Internal Reserves per unit (Note2)

7 Execute strategies with single focus on Sustainable growth of unitholder value Expanded Borrowing Capacity and Internal Reserves for Sustainable growth of unitholder value while steadily enhancing DPU level Acquisition PO CY 2016 The Initiatives and Impacts of the Initiatives Acquired 1 hotel of 4.8 bil. yen Hotel Nikko Himeji Disposition Internal reserves Disposed of 1 office Set aside 0.89 bil. yen as internal reserves Toyo MK Building Be scheduled to Acquisition acquire 1 hotel of Cash 1.5 bil. yen in Dec (Tentative)HOTEL LiVEMAX Nagoya-Sakae Annex CY 2017 Acquisition Debt Acquired 1 hotel of 26.8 bil. yen SUNROUTE PLAZA TOKYO 6 Early Repayments PO Early Repayment of Short Term loans of 21.8 bil. yen attributable to acquisition of SUNROUTE PLAZA TOKYO Based on announcement date Aug. End of FP29 Announcement Aug of the PO in Sep (Note 1) Borrowing Capacity (LTV Based on total asset) Internal reserves (Internal reserves per unit) Sep. Oct. Previous financial announcement Before the initiatives Nov. Dec. Previous financial announcement After the initiatives Feb. Announcement of the PO in Mar End of FP30 (Feb. 2017) 70.9 bil. yen (44.2%) 70.9 bil. yen (44.2%) 94.9 bil. yen (42.6%) bil. yen (-1.6%) 1.84 bil. yen (731 yen) 1.84 bil. yen (731 yen) 2.74 bil. yen ( 1,024 yen) bil. yen (+293yen) Jan. Mar. Change Apr. Financial announcement Increase of borrowing capacity Improvement of DPU stability DPU FP31 (Aug. 2017) 2,930 yen 2,970 yen 3,040 yen +110 yen (+3.8%) FP32 (Feb. 2018) Estimated property - related tax per unit Compared to the previous financial announcement +70 yen (P39) 3,080 yen Approx. 15 yen Adjusted DPU forecast 2,930 yen 2,970 yen 3,065 yen +135 yen (+4.6%) (Note 2) (Note 3) Compared to FP31(Aug. 2017) +40 yen (P42) Stable Growth of DPU Factor: Increase of Rental revenue by improving occupancy rate and leasing conditions. Note 1: Borrowing Capacity is calculated according to borrowing capacity up to 50% of LTV based on total assets. Note 2: Estimated property-related tax per unit of approx. 15 yen is calculated by dividing the total of property-related tax to be recorded as an expense for FP33 (Aug. 2018) as results of SUNROUTE PLAZA TOKYO acquired and (Tentative) HOTEL LiVEMAX Nagoya-Sakae Annex to be acquired by the number of investment units outstanding after the initiatives. Note 3: The figure is calculated by deducting estimated property-related tax per unit of approx. 15 yen from DPU forecast for FP 32 (Feb. 2018).

8 Stable growth of DPU Drive DPU growth by taking advantage of Internal /External Growth Strategy and Financial Strategy Exceeded Forecasts for FP30 (Feb. 2017) and FP31 (Aug. 2017) of 6 months ago 7 DPU Trend (Note1) DPU (Yen) 3,300 3,200 3,100 3,000 2,900 Amount related to capital gains (Note 2) 2,929 2, P40 42 Comparison between actual results for FP29 and actual results as well as new forecasts from FP30 to FP32 with previous forecasts P Comparison between forecasts and actual result 3, P Comparison between previous and new forecast Amount related to capital gains (Note 2) 3,040 (Forecast) +40 3,080 (Forecast) 2, ,205 2,700 2,600 2,500 2,604 2,717 2,727 2,926 3,000 2,980 3,000 Forecast of 1 year ago Forecast of 6 months ago Actual result 2,970 Forecast of 6 months ago New forecast New forecast 2,400 FP25 Aug PO FP26 Feb PO FP27 Aug PO FP28 Feb PO FP29 Aug PO FP30 Feb PO FP31 Aug PO FP32 Feb Main initiatives for further DPU growth External Growth Strategy Intenal Growth Strategy Financial Strategy Flexible property acquisition by using acquisition capacity Annual Free Cash Flow:Approx. 5 bil. yen Borrowing Capacity up to LTV50%:94.9 bil. yen Improvement in leasing conditions such as rent increase Reduction of Ave. funding costs through refinance Note 1 : Forecast of 1 year ago refers to the DPU forecast as of the financial announcement in the second last fiscal periods from the fiscal period and Forecast of 6 months ago refers to DPU forecasts as of the financial announcement for the last fiscal period. Note 2 : Amount related to capital gains is calculated by deducting both internal reserves and early repayment fees from capital gains on the property dispositions and then by dividing the said calculation results by the number of investment units outstanding. The figures are rounded down to the nearest whole number. For FP 29 (Aug. 2016), there are no amount related to capital gains in the DPU, since internal reserves for the period exceeded capital gains from dispositions. Please see Page 40.

9 Initiatives for DPU Growth 8 Aim for mid-to long-term stable growth of DPU by taking advantage of a variety of strategies Simulations: Hypothetical impacts of each initiative to DPU growth Note: The following figures represent the hypothetical impacts of each initiative on DPU according to the financial performance assumed by OAM based on a certain of assumptions. We, however, do not provide any guarantee with respect to the probability, the amount and the timing of such impact. In particular, we can not guarantee that the new acquisitions will be completed with the terms below, since the terms are subject to changes due to the condition of real estate market. DPU may also change due to other factors not listed below. Impacts on Portfolio and financial position after the initiatives (Simulations). Impacts of External Growth Opportunities by utilizing diverse funding sources (Simulations). Rate of change in rents of existing Offices:0.5% Approx. 20 yen per unit Variable rate of Ave. funding costs:0.06% pt. Approx. 30 yen per unit Property acquisition by utilizing FCF of 5 bil. yen Approx. 35 yen per unit Property acquisition by utilizing Borrowing Capacity of 10 bil. yen. Approx. 50 yen per unit Impacts (Note1) on DPU by multiplying change in forecasted Total Rental Revenue in Office of Approx. 10 bil. yen by Rent Fluctuation Rate of 0.5% in consideration of actual results of change in rents attributable to tenants turnovers/rent renewals in Offices from FP27 (Aug. 2015) to FP30 (Feb. 2017). Impacts on DPU attributable to change in financing-related costs calculated by multiplying Balance of Interest-bearing liabilities of bil. yen after the initiatives by forecasted variable rate (0.06%) of Average funding costs. Impacts on DPU from full fiscal period contribution of earnings after deducting AM fees if OJR hypothetically acquires properties at the same level with actual yield after depreciation of approx. 3.8 % in the portfolio from FP27 (Aug. 2015) to FP30 (Feb. 2017) by utilizing 5 bil. yen out of FCF for 1 year. Impacts on DPU from full fiscal period contribution of earnings after deducting AM fees and funding costs if OJR hypothetically acquires properties at the same level with actual yield after depreciation of approx. 3.8% in the portfolio from FP27(Aug. 2015) to FP30(Feb. 2017) by utilizing 10 bil. yen equivalent to approx. 1% of LTV based on total assets in Borrowing capacity of 94.9 bil. yen after the initiatives. Note1: DPU Impacts by change in rents of offices which account for approx. 50% of our total rental revenue are shown in the above simulation, because of frequency of tenant replacements or rent renewals in each asset type. Note2: When OJR makes assumptions of DPU, DPU simulations are based on the total of 2,680,000 investment unit outstanding after the initiatives.

10 Drive Growth of Unitholder value 9 Drive Growth of Unitholder value by diversifying our growth opportunities 3,400 3,200 3,000 2,800 2,600 2,400 2,200 Stable growth of DPU DPU: FP22(Feb. 2013) 2,352 yen (Note1) (Yen) 2,411 2,352 (Note1) FP22 (Feb. 2013) FP23 (Aug. 2013) 2,479 FP24 (Feb. 2014) 2,604 FP25 (Aug. 2014) +8.0% per year 2,717 2,727 (Note2) FP26 (Feb. 2015) 2,929 FP27 (Aug. 2015) FP30(Feb. 2017) Excl. Amount related to Capital gains 3,205 yen 2,989 3,000 2,926 (Note2) FP28 (Feb. 2016) FP29 (Aug. 2016) 3,252 3,205 (Note2) FP30 (Feb. 2017) Note 1:OJR set a record date on Feb. 28, 2013 and an effective date on Mar. 1, 2013 respectively and split each investment unit into one-fifth. The above-mentioned DPU for FP 22 (Feb. 2013) = Actual Distributions for FP 22 (Feb. 2013) / (5*investment units outstanding at the end of Feb (FP 22)). The calculation result is rounded down to the nearest whole number. Note 2:Amounts related to capital gains are excluded in the foregoing figures. Internal reserves per unit: (Yen) 1,500 End of FP22(Feb. 2013) 47yen (Note) (68 mil. yen in total) After the initiatives 1,024 yen (2,745 mil. yen in total) Increase of NAV per unit NAV per unit: (Yen) 160, , , , , , ,000 In consideration of Internal reserves Capitalization (bil. Yen) ,670 (Note) FP22 (Feb. 2013) 110,488 FP23 (Aug. 2013) End of FP22(Feb. 2013) After the initiatives 104,670 yen (Note) +10.3% per year 156,947yen 115,784 FP24 (Feb. 2014) 122,652 FP25 (Aug. 2014) 130,683 FP26 (Feb. 2015) 137,534 FP27 (Aug. 2015) Note : OJR set a record date on Feb. 28, 2013 and an effective date on Mar. 1, 2013 respectively and split each investment unit into one-fifth. The above-mentioned NAV per unit in consideration of internal reserves as of FP22 (Feb. 2013)= NAV in consideration of internal reserves for the fiscal period / (5* investment units outstanding at the end of Feb (FP 22). The calculation result is rounded down to the nearest whole number. FP22(Feb. 2013) bil. yen 3.0 times 144,824 FP28 (Feb. 2016) 150,841 FP29 (Aug. 2016) 156,947 After the initiatives Enhanced the liquidity of the investment units As of Mar. 31, bil. yen 1, , (Note) FP22 (Feb. 2013) FP23 (Aug. 2013) FP24 (Feb. 2014) FP25 (Aug. 2014) FP26 (Feb. 2015) 345 FP27 (Aug. 2015) FP28 (Feb. 2016) FP29 (Aug. 2016) After the initiatives Note : OJR set a record date on Feb. 28, 2013 and an effective date on Mar. 1,2013 respectively and split each investment unit into one-fifth. The abovementioned Internal reserves per unit for FP 22 (Feb. 2013) = Internal reserves for FP 22 (Feb. 2013) / (5* investment units outstanding at the end of Feb (FP 22) ). The calculation results is rounded down to the nearest whole number Feb Aug Feb Aug Feb Aug Feb Aug Feb. 2017

11 Drive Growth Strategy

12 Diversified Growth Pursuant to Environmental Changes(1) Diversified growth pursuant to external environment and OJR s conditions such as its expanded asset size and strengthened financial stability External Environment Inauguration of the 2 nd Abe Cabinet in Dec New Tokyo dimension chosen to of monetary host 2020 easing by Olympic BOJ games in Apr in Sep Consumption tax rise decision in Oct Implementation of consumption tax rise in Apr Additional monetary easing measures in Oct Nikkei hit JPY20,000 level in Apr Launched Negative Interest Rate Policy in Jan Brexit referendum in Jun US presidential election in Nov US interest hike in and after Dec OJR condition Asset size JPY650bil- JPY600bil- Offices Retail facilities Logistics facilities Residential properties intervillage OH! MAGARI Hotels and Others R-Styles Musashi-Kosugi Exceeded JPY 500bil in asset Central Crib Roppongi JCR upgrade ORE Ohmiya Building Hamamatsu Act Tower S&P upgrade Trend of Asset size The end of Feb GRAN MART Tegata JPY500bil- JPY550bil- CROSS GARDEN KAWASAKI Belle Face Kanazawa Kohrinbo Valor Suzuka Shopping Center Belle Face Higashijujo Iwatsuki Logistics Center The end of Feb Round-Cross Akihabara Gaien Nishi-dori Building JPY400bil- JPY450bil- JPY350bil- JPY300bil- Diversified Growth Drivers Tecc Land Totsuka (Land) The end of Feb aune Yurakucho Profitable and stable retail facility MG Shirokanedai Building Cross Avenue Harajuku SHIBUYA PINE Bldg. Property close to terminals in central Tokyo JouLe SHIBUYA West Park Tower IKEBUKURO ORE Nishiki 2-chome Bldg. aune Ikebukuro Lately-built office in convenient locations of major cities Note 1:The above line chart shows part of properties acquired by OJR in and after FP23 ended August DOJIMA PLAZA BLDG. PRIME SQUARE HIROSE-DORI Round-Cross Ginza 2-chome ARK Hills South Tower HOTEL KEIHAN SAPPORO VIA INN SHINSAIBASHI BLDG. High class office located in central Tokyo ORIX Yodoyabashi Bldg. Aoyama Suncrest Building (Additional Acquisition) Kita Aoyama Building PRIZE TENJIN TAKANAWA DUPLEX C s Hotel and Serviced Apartment SUNROUT PLAZA TOKYO Hotel Nikko Himeji Note 2: Trend of Asset size refers to the total of acquisition prices as of the end of each fiscal period.

13 Diversified Growth Pursuant to Environmental Changes(2) Going forward, continue to target diversification of growth opportunities by coping with environmental changes in a flexible manner; Guideline for investment ratios changed in Asset Type and Area. Name of asset type changed from "Others" to "Hotels and Others" to better reflect realities of the portfolio. Change in Guideline for the investment ratios and Name of Asset Type Change in Name of Asset type Others Hotels and Others 9.5% Logistics Facilities 6.0% Residential Properties 11.0% Retail Facilities 17.7% Change in the investment ratios [Guideline] Offices ratio Offices 55.9% Other Areas 26.4% Other parts of Greater Tokyo Area 20.3% 6 Central Tokyo Wards 41.9% Asset Type Area Greater Tokyo Area Previous Approx. 60%±10% Hotel The investment ratios after the initiatives based on acquisition price After Approx. 50%±10% [Guideline] Greater Tokyo Area Complex facility mainly composed of Hotel Previous Approx. 80%±10% Service Apartment 73.6% Remaining Tokyo Wards 11.4% After Approx. 70%±10% There has been no change in properties acquisition policy. We have been progressing to make selective investments in properties that leverage our strength such as Diversified REIT, ORIX Synergy and Operating Expertise. By capturing profit factors different from other asset types, such as demand for stays and accommodation, for which there are expectations for growth, we aim to improve our portfolio quality from profitability, stability and growth perspective. Elderly housing 12 SUNROUTE PLAZA TOKYO Hotel Nikko Himeji VIA INN HOTEL SHINSAIBASHI KEIHAN BLDG. SAPPORO Richmond Hotel Yamagata Ekimae Cross Gate TAKANAWA DUPLEX C s GOOD TIME LIVING Shin-Urayasu

14 Sponsor Pipeline and Our Acquisition Track Record from Sponsor 13 Drive external growth by utilizing ORIX Synergy Our track record in asset acquisition from ORIX Group Acquisition properties totaled billion yen in and after FP23 (Aug. 2013) that started POs in 9 consecutive fiscal periods. Properties acquired from Sponsor account for approx. 88 % of the whole properties acquired by OJR. (million yen) 50,000 40,000 30,000 Other 33,030 Sponsor 28,025 48,825 42,243 31,624 48,572 26,142 45,233 20,000 10,000 0 FP23 FP24 FP25 FP26 FP27 FP28 FP29 FP30 Aug Feb Aug Feb Aug Feb Aug Feb Note : The figure for FP23 (Aug. 2013) includes intervillage OH! MAGARI (Silent Partnership Equity Interest). The figure for FP27 (Aug. 2015) includes ARK Hills South Tower (Preferred Equity Securities). (bil. yen) ORIX Group s real estate segment assets (Note) based on book value as of Dec. 31, 2016 Rental Property Assets by Type and Operating assets etc. Rental real estate by Region Under Development Rental real estate bil. yen Under lease bil. yen (bil. yen) Under Development Under lease Office Commercial Rental Logistics Others Operating Others Tokyo Kanto excl. Tokyo Osaka Kansai excl. Nagoya Sapporo Other Osaka Sendai Buildings Facilities Condos Centers Facilities Fukuoka Note: ORIX Group s real estate segment assets is prepared independently by OAM based on Consolidated Financial Results Supplementary Information for the Nine-month Ended December 31, 2017 released by ORIX Corporation on January 26, The definitions of Type and Region are based on those of ORIX Corporation

15 ORIX Group s Properties Leverage ORIX Group s comprehensive expertise such as development, leasing and management in various Asset Types. Onyado Toho (Aizuwakamatsu-shi, Fukushima) Inn Opened in Mar Long-established Inn with open-air hot springs where users can enjoy a whole view of Aizu Basin surrounded by a wealth of nature. HOTEL UNIVERSAL PORT (Konohana-ku, Osaka-shi, Osaka) Hotel Opened in Jul Universal Studios Japan s official hotel with 600 guest rooms. Approx. 3-min walk from JR Universal Studio Station. Renovation of the main dining hall, open-air hot spring, chapel and banquet rooms completed by ORIX Group. Renovation of the main dining hall and guest rooms, together with installation of concept (character) rooms and suite rooms completed by ORIX Group. 14 HUNDRED CIRCUS East Tower (Hyakunin-cho, Shinjuku-ku, Tokyo) Residential Hotel, Serviced Apartment Completed in Aug A complex facility composed of rental units, hotel as well as serviced apartment and office. Ueno 1-chome Building (Ueno, Taito-ku, Tokyo) Office Completed in Sep Offce building with consideration of both environmental skills and business continuity planning in central Tokyo facing Chuo Avenue within 4-min walk from 6 stations on 6 train lines. Hilton Okinawa Chatan Resort (Chatan-cho, Nakagami-gun, Okinawa) Hotel Opened in Jul A resort hotel jointly developed with Hilton Worldwide, boasting 346 guest rooms. Resort wedding facility opened in autumn 2015, adjacent to the hotel (Tentative name) Yaesu-dori Project (Hatchobori, Chuo-ku, Tokyo) Office Scheduled for completion in the summer of 2017 Office building in central Tokyo facing Yaesu Dori. Approx. 4-min walk from Hatchobori Station of Tokyo Metro and within walking distance from JR Tokyo Station. Naha Shin-Toshin Center Building (Naha-shi, Okinawa) Office Hotel Completed in Jul A complex facility located in Naha Shin-Toshin Omoromachi, jointly developed by Daiwa House Group and ORIX Group. S-GATE AKASAKA-SANNO (Akasaka, Minato-ku, Tokyo) Office Completed in Nov A central Tokyo office jointly developed by ORIX Group and THE SANKEI BUILDING CO., LTD, facing Sotobori-dori. Note : As of April 14, 2017, the date of financial announcement, OJR has no plan to purchase the above-mentioned properties.

16

17 External Growth Strategy 2 決算概要及び業績予想

18 Acquisitions through the Initiatives Official hotel of Tokyo Disney Resort which boasts the largest number of visitors in Japan. Managed and owned by ORIX Group for long periods SUNROUTE PLAZA TOKYO Acquisition Price Appraisal value NOI Yield Yield after depreciation Occupancy rate Guest rooms 26,800million yen 26,900million yen (Note) 5.6% (Note) 4.7% (Note) 100% *Different from hotel room occupancy rate 696 rooms 17 Location features A scarce official hotel of Tokyo Disney Resort (TDR), the outstanding large scale theme park in the world and site with the largest number of visitors in Japan. Urayasu-Shi boasts an accommodation market which is one of the largest in Japan with TDR s incomparable capability to attract visitors. The property s hotel room occupancy rate was 95% in the fiscal year ended March 31, 2016 and ADR (Note) was approx. 19,700 yen. It maintained a hotel room occupancy rate of 78% and ADR of approx. 17,300 yen even in the fiscal year ended March 31, 2012 which was affected by the Great East Japan Earthquake. TDR Official Hotel has high appeal among visitors of TDR in having excellent traffic convenience with Disney Resort Line (monorail) and circuit buses as well as various benefits. Total of 696 guestrooms including 192 guestrooms from 16 to 20 m 2, 483 guestrooms from 24 to 28 m 2 and 21 guestrooms from 33 to 96 m 2. Along with wedding facilities such as a chapel and banquet halls, it has Japanese and Western restaurants, a Disney shop, etc. Currently, there are no new supply plans of official hotels. Tenant features Hamakaze, buffet style Japanese restaurant, renovated in March, ORIX Group has taken 30% stake in a company which is not only the lessee but also the hotel management company since It is possible to operate facilities in cooperation with ORIX Group after the acquisition. The rent takes the following form: Guaranteed minimum rent + sales-linked rent. The proportion of Guaranteed minimum rent is high, at about 97%, and we can expect stable profitability. Type Address Land space Building space Construction Completion Hotels and Others Urayasu-shi, Chiba 19,834.00m2 Existing wing: 29,384.20m2 Extension wing: 9,104.40m2 Existing wing: Steel-reinforced concrete, reinforced concrete, Steel framed with tiled flat roof, 9 floors with 1 underground floor Extension wing: Steel frame flat roof, 8 floors Existing wing: June, 1986 Extension wing: October, 2003 Terms Standard lease Note:The figures are based on Appraisal report obtained at the timing of the decision made about the property acquisition. As for the details, please see Terminology. Note : The Average Daily Rate (ADR) represents the amount calculated by dividing the total revenue from the hotel division during a certain period excluding service fees by the total number of rooms sold.

19 Acquisitions through the Initiatives Trend of Attendance to Tokyo Disney Resort (TDR) 18 (Unit: K) TDR Attendance Attendance of foreigners 40,000 30,000 TDL 10th Anniversary TDS Grand Opening 22,050 TDL 20th TDS Anniversary 10th Anniversa 25,470 25,350 TDL 30th Anniversary 31,300 30,190 20,000 TDR Grand Opening 16,030 10,000 9, ,220 1,810 Reference:Prepared by OAM based on the market report. TDL refers to Tokyo Disney Land and TDS refers to Tokyo Disney Sea. List of Hotels in the Vicinity of TDR Disney Hotels Official Hotels Partner Hotels Good Neighbor Hotels Number of Hotels Location Located within TDR Exd. Tokyo Disney Celebration Hotel Located within TDR Located near TDR Hotels around TDR Disney Resort Cruiser Total number of lodgers in large cities and factors of total number of lodgers against population Total number of lodgers (Left Axis) (Unit: mil. yen) - - Exd. Tokyo Disney Celebration Hotel Priority admission Guaranteed admission to the park when admission restrictions - - are in place Baggage delivery Free Free Toll - Disney Shops - Reference:Prepared by OAM based on the market report. - - Factors of total number of lodgers against population (Right axis) (times) Ratio of each rent type in Hotels and Others based on rents as of Feb. 28, 2017 Variable rent 7% Cruising Cabin Mountain Room Fixed rent 93% 323mil. yen per month Source: Prepared by OAM from the Japan Tourism Agency's "Accommodation Survey October September 2016" and the Ministry of Internal Affairs and Communications' "Population, Demography and Number of Households Based on the Basic Resident Registers (as of January 1, 2016) " Note: Above for the details, please see Terminology.

20 Acquisitions through the Initiatives Leading domestic brand hotel managed by ORIX Group facing World Heritage Himeji castle Hotel Nikko Himeji 19 Leverage ORIX Group s nationwide networks (Tentative) HOTEL LiVEMAX Nagoya-Sakae Annex Acquisition Price Appraisal value NOI Yield 4,800million yen 4,820million yen (Note) 7.1% (Note) Yield after depreciation 5.7% (Note) Occupancy rate Guest rooms 100% *Different from hotel room occupancy rate. 257 rooms (single rooms : 170) * Property to be acquired after the completion of construction and grant of the permissions and the approvals. Location features No.1 full-service hotel in Himeji located in front of Shinkansen Himeji Station, with large and small banquet halls, a chapel and fitness facilities, owned and managed by ORIX group since With a population of 530 thousand, Himeji features as an industrialized city where manufactures concentrate on the coastal region, and functions as the economic and business center of the Western Hyogo and Banshu area. Himeji castle, Japan s first registered World Heritage, is within walking distance. Selected as No.1 in TripAdvisor Best Castle Ranking 2016, Himeji castle enjoys high recognition among foreigners Tenant features Type Address Land space Building space Construction Completion Terms Hotels and Others Himeji-shi, Hyogo 5, m2 35, m2 Steel-frame reinforced concrete with flat roof, 15 floors with 1 underground floor September,1990 Fixed-term lease Nikko has built broad networks in Asia, and has strong presence among Asian tourists. Note :The foregoing figures are based on the appraisal report obtained at the timing made decision to acquire the property. Please see the Terminology. Scheduled acquisition price Appraisal value NOI Yield Yield after depreciation Occupancy rate Guest rooms Terms Address Scheduled acquisition date 1,500million yen 1,670million yen (Note) 5.2% (Note) 3.4% (Note) 100%(Scheduled) *Different from hotel room occupancy rate 113 rooms(scheduled) Fixed-term lease(fixed rent) (Scheduled) Sakae, Naka-ku, Nagoya-shi, Aichi December 26, 2017 Be scheduled to lease back a new hotel after the grand opening by leveraging ORIX Group s nationwide networks. Acquired it on an exclusive negotiation basis at approx. 90% of its appraisal value at the timing of the contract execution in spite of the overheated market regarding hotel property transactions.

21 Track records in Hotels and Others by ORIX Group 20 Abundant track records of both developments and facility operations in Hotels and Others for long periods Business Expansions into Hotels and Others 1986 Entered into Real Estate Business 1990 Commenced operations in Hotels and Others OJR went public Track Records for more than 25 years Expand ORIX Group s business into various business fields through acquisition, development and facility operation by utilizing a variety of expertise Know-how and pipelines Facility types Classification by Facility Operation Project / Development Business Hotel Inn Operation by ORIX Group Operation City Hotel Service Apartment MC Financial Services Resort Hotel Lease for Operators Business Revitalizations and Developments in Hotels and Others Business Kyushu, Beppu Suginoi-Hotel Revitalization A long-established Japanese-style inn that has been operating for approx. 70 years in the Beppu hot spring district. By providing management guidance and investing in numerous new facilities, the occupancy rate has improved significantly. Popular both in Japan and with overseas visitors, this case has drawn attention as an example of the successful revitalization of a large hot spring Japanese-style inn. Development Note : As of April 14, 2017, the date of financial announcement, OJR has no plan to purchase the above-mentioned properties. Hakone Ashinoko Hanaori Hakone Ashinoko Hanaori, the ORIX Group s first newly constructed Japanese-style inn, is scheduled to open in August, 2017 in Hakone, one of Japan s leading hot springs destinations. The facilities will include 154 guest rooms, hot springs baths with stunning views, and restaurants where guests can enjoy new styles of buffet dining. Development (Tentative) Cross Hotel Kyoto As the third iteration of the Cross Hotel brand after Sapporo and Osaka, this hotel, with around 300 guest rooms, is scheduled to open in the autumn of In addition to Kyoto's tourist spots, this location provides extremely smooth access to Kansai-area destinations such as Osaka.

22

23 Internal Growth Strategy 2 決算概要及び業績予想

24 Actual results in Internal Growth by Direct PM:Occupancy Rate and Tenant Turnover(Assumption of DPU forecasts) Occupancy rates in offices are expected to hover around 97% in and after the end of FP30 ended Feb.28,2017. Assumptions for Tenant Move-in Move-in spaces are forecasted in consideration of the confirmed contracts (both increase and decrease in rent renewals), as well as inquiries from tenants and leasing market conditions. Assumptions for Tenant Move-out Move-out spaces are forecasted in consideration of the confirmed contracts, as well as negotiation status with tenants and leasing market conditions. Occupancy Rates at the end of each fiscal period FP22 Feb ,600-11,000-17% FP23 Aug ,200-23% Whole Offices Other facilities excl. offices Offices at the previous financial announcement Maintain high occupancy rate FP24 Feb ,000 5,600 6,700 9,700 6,800-6,500-5,000-5,400-2% FP25 Aug % Assumptions for forecasts FP26 Feb ,600-10,000 10% FP27 Aug % FP28 Feb Regarding both offices and retail facilities, Above) Move-in / Move-out Space, Below) Rent Fluctuation Rate by Tenant Turnover Move-in (Only confirmed move-in in and after FP31) Move-out (Only confirmed move-out in and after FP31) Note : Figures are rounded to the nearest 100m 2. FP22 Feb FP23 Aug Move-in (Forecast) Move-out (Forecast) FP24 Feb Move-in forecasted at the previous financial announcement Move-out forecasted at the previous financial announcement FP25 Aug Including c. 4,300 m2 Move-out spaces by a large tenant in Nihonbashi Honcho 1-chome Building FP26 Feb FP27 Aug ,600 2% FP29 Aug Rent Fluctuation Rate by Tenant Turnover (Forecasts are shown in dotted line) Including c. 5,300 m2 Move-out spaces by 2 large tenants in Ark Hills South Tower (25% Co-ownership) 12,500 17,000 18,100-10,000-17,900-17,000-17,300-15,000 5% 7% Improved leasing conditions FP30 Feb Rent Fluctuation Rate by Tenant Turnover forecasted at the previous financial announcement FP28 Feb FP29 Aug Note : Dotted lines are forecasts 11,400 9,400 7% 1% 0% FP30 Feb FP31 Aug (Forecast) Increase occupancy rate by controlling Move-out FP31 Aug (Forecast) FP32 Feb (Forecast) 13,900-16,500-2% 0 23 (%) ( m2 ) 30,000 20,000 10,000-10,000-20,000-30,000 10% 0% 100 Including c. 8,400 m2 Move-out spaces by a large tenant in Seafort Square Center Building FP32 Feb (Forecast) -10% -20% -30%

25 Actual results in Internal Growth by Direct PM:Rent Renewals of Existing Tenants (Assumption of DPU forecasts) 24 Upward Rent Renewal Spaces are expected to exceed 19,000 m2 regarding both actual results in Feb (FP30) and forecasts in Aug (FP31) Assumptions for forecasts Assumptions for Upward Rent Renewals and Downward Rent Renewals Both Upward Rent Renewals and Downward Rent Renewals are forecasted comprehensively in consideration of the confirmed contracts as well as the rent gap between the market conditions and the current terms and conditions in agreements, negotiation status etc. Existing Tenants Rent Renewal Spaces in Offices and Retail Facilities only <FP30(Feb. 2017)> Renewals at the same Rent 68% Total Space: Approx.64,800 m2 <FP29(Aug. 2016)> Renewals at the same Rent 83% Total Area: Approx.78,300 m2 Rent Renewals 32% Rent Renewals 17% Upward Rent Renewal Spaces: Approx.19,800 m2 Ratio of Upward Renewals:6% Downward Renewals 3% Upward Renewals 97% Downward Rent Renewal Spaces: Approx. 700 m2 Ratio of Downward Renewals:-8% Upward Renewals 100% 9,100 8,600 9% Existing Tenants Rent Renewal Spaces in Offices and Retail Facilities only Upward(only confirmed upward in and after FP31) Downward(only confirmed downward in and after FP31) Upward (forecast at the previous financial announcement) Downward (forecast at the previous financial announcement) Rent Fluctuation Rate 5% 19,800 19,700 17,100 12,600 13,700 12,900 6% 9% 6% 6% 4% Increase of Upward Rent Renewal Spaces 3% 2, ,300-1,400-2,400-1,200 FP26 FP27 FP28 FP29 FP30 FP31 FP32 Feb Aug Feb Aug Feb Aug Feb (Forecast) (Forecast) Note : Figures are rounded to the nearest 100m 2. Rent Fluctuation Rate of Rent Renewal spaces in Offices and Retail Facilities only FP26 Feb Improvement of leasing conditions Rent Fluctuation Rate forecasted at the previous financial announcement FP27 Aug FP28 Feb FP29 Aug FP30 Feb Upward(forecast) Downward(forecast) Note : Dotted lines are forecasts FP31 Aug (Forecast) FP32 Feb (Forecast) 0% ( m2 ) 25,000 20,000 15,000 10,000 5, ,000 10% 8% 6% 4% 2% 0%

26 Actual results in Internal Growth:Initiatives over Tenants move-out risk Impacts of move-out by large tenants decreased thanks to expansion of Asset size and diversification of tenants. Vacancies in ARK Hills South Tower have been filled steadily. Diversification of Tenants based on rents as of Feb. 28, 2017 Number of total tenants in the whole portfolio:1,001 / Total monthly rents:3,288 mil. yen / Number of Tenants in Offices:837 Top 10 Tenants:17% 25 Impacts of tenants move-out are decreasing thanks to expansion of asset size. The Top tenant in Offices accounts for approx. 1.5%. Each tenant lower than TOP 9 accounts for under 1%. ARK Hills South Tower(25% co-ownership. Figures of move-out space represent 100% ownership) Status in leasing after move-outs by 2 large tenants Under leasing activities 35% Signed agreement and agreed to conditions 65% A large beverage manufacturer moved out of spaces of approx. 5,600 m2 in Oct A large IT company moved out of spaces of approx. 15,400 m2 in Feb OJR s stake is approx. 5,300 m2 in approx. 21,000 m2 in total OJR has prospects for filling 65% in spaces moved out by 2 large tenants, namely 7 floors in 11 floors as of today. Note : The above-mentioned spaces are rounded to the nearest 100 m2.

27 Actual results in Internal Growth Internal growth has been progressing in various asset types and areas Offices Office located in a convenient area Round-Cross Ginza 2-chome (Chuo-ku, Tokyo) Acquired in September, 2015 Conveniently located within walking distance to 7 stations of 8 lines including JR station. 4 Upward Rent Renewals including Tenant Turnover at Ave. +11% from Property Acquisition to today. Large complex facility in a major city Hamamatsu Act Tower (Hamamatsu-shi, Shizuoka) Acquired in April, 2016 Complex facility composed of Offices, Hotel and Retail Facilities 13 Upward Rent Renewals in Office Section from Property Acquisition to today. Office located in a convenient area of a major city SAPPORO BRICK CUBE (Sapporo-shi, Hokkaido) Acquired in April, 2016 Limited supply of new properties in the area 11 Upward Rent Renewals including Tenant Turnover at Ave. +10% from Property Acquisition to today. Urban-type Retail Facilities Hotels and Others (Service Apartments Hotels) 26 Urban-type Retail Facility in Central Tokyo aune Yurakucho (Chiyoda-ku, Tokyo) Acquired in April, Conveniently connected to Tokyo Metro Hibiya station directly and located within approx. 2-minute walk from JR Yurakucho station. Occupied by a mobile shop and restaurants. 6 Upward Rent Renewals at Ave. +12% in and after FP31(August, 2017). Service Apartment in a residential area of Central Tokyo TAKANAWA DUPLEX C s (Minato-ku, Tokyo) Acquired in June, Scarce Service Apartment conveniently located in a high-end residential area of Central Tokyo. Upward Rent Renewals at +3% in FP31 (Aug. 2017) Hotel located in a downtown area of Osaka VIA INN SHINSAIBASHI BLDG. (Osaka-shi, Osaka) Acquired in September, Limited Service Hotel lately build in Shinsaibashi area which is a very famous shopping area. 1 Upward Rent Renewal at +67% in Retail Section in FP31 (Aug. 2017).

28

29 Financial Strategy 2 決算概要及び業績予想

30 Financial Strategy 29 Drive reducing financing costs and enhancing financial stability Expand borrowing capacity for flexible property acquisitions Average Financing Costs and Average Duration to Maturity (year) Average duration to maturity (left axis) Average funding cost (right axis) (%) FP22 Feb FP23 Aug FP24 Feb FP25 Aug FP26 Feb Maturity and Duration of Interest-bearing liabilities after the initiatives FP27 Aug FP28 Feb FP29 Aug FP30 Feb After the initiatives 0.5 (million yen) 40,000 30,000 20,000 Long-term debts that matured/mature in and after FP30 (Feb.2017) Early repayment of short-term debts attributable to a property acquisition for FP31 (Aug.2017) Existing interest-bearing liabilities Refinancing Debts attributable to property acquisitions Commitment line: 33.5 billion yen Interest-bearing liabilities:274,117 million yen Average duration to maturity:4.4 year 10,000 0 FP30 Feb FP31 Aug FP32 Feb FP33 Aug FP34 Feb FP35 Aug FP36 Feb FP37 Aug FP38 Feb FP39 Aug FP40 Feb FP41 Aug FP42 Feb FP43 Aug FP44 Feb FP45 Aug FP46 Feb FP47 Aug FP48 Feb FP49 Aug FP50 Feb FP51 Aug (%) Borrowing Capacity (right axis) LTV based on total assets (left axis) 94,914 (million yen) , Trends on LTV based on Total Assets and Borrowing Capacity 0 FP22 Feb ,812 13,055 14,480 After the PO in Mar FP23 Aug After the PO in Oct ,213 FP24 Feb ,717 30,407 After the PO in Mar FP25 Aug , After the PO in Sep ,083 FP26 Feb Note: Please see Overview of Public Offerings for Consecutive 9 Fiscal Periods regarding details of each PO on page ,918 42,995 43,191 45, After the PO in Mar FP27 Aug After the PO in Sep FP28 Feb ,139 53, After the PO in Mar FP29 Aug ,990 47, After the PO in Sep FP30 Feb After the initiatives 80,000 60,000 40,000 20,000

31 Financial Data 30 Financial Indicators FP 30 Feb. 28, 2017 After the initiatives List of Long-term Debt Lenders Financial Institution Outstanding (million yen) Ratio 29 institutions/ 254,617 million yen in total As of Financial Announcement on April 14, 2017 Financial Institution Outstanding (million yen) Sumitomo Mitsui Trust Bank, Limited 39, % The Daishi Bank, Ltd. 3, % Ratio Interest-bearing liabilities 295,917 million yen 274,117 million yen LTV based on total assets 46.3 % 42.6 % LTV based on unitholders capital 49.8 % 45.9 % Average interest rate 0.80 % 0.85 % Average funding cost 1.03 % - Fixed-rate debt ratio 82.9 % 93.7 % Average duration to maturity 3.8 years 4.4 years Investment corporation bonds Credit Ratings Total: 19,500 million yen As of Financial Announcement on April 14, 2017 Balance Interest (million yen) rate Issue date Period Unsecured Investment Corporation Bond No. 5 5, % Feb. 8, yrs. Unsecured Investment Corporation Bond No. 6 5, % Jan. 20, yrs. Unsecured Investment Corporation Bond No. 7 2, % Jan. 20, yrs. Unsecured Investment Corporation Bond No. 8 2, % Aug. 11, yrs. Unsecured Investment Corporation Bond No. 9 3, % Aug. 11, yrs. Unsecured Investment Corporation Bond No. 10 2, % Dec. 19, yrs. As of Financial Announcement on April 14, 2017 Long-term rating: A S&P Outlook : Stable Short-term rating: A-1 R&I JCR Issuer rating: A+ Long-term issuer rating : AA Rating outlook : Stable Rating outlook : Stable Sumitomo Mitsui Banking Corporation 33, % THE SHIZUOKA BANK, LTD. 2, % Mitsubishi UFJ Trust and Banking Corporation Status of Commitment Line As of Financial Announcement on April 14, 2017 Financial institution Line limit (million yen) Aozora Bank, Ltd. 7,500 Sumitomo Mitsui Trust Bank, Limited 6,000 Mitsubishi UFJ Trust and Banking Corporation 6,000 Mizuho Bank, Ltd. 3,000 Sumitomo Mitsui Banking Corporation 5,000 The Bank of Tokyo-Mitsubishi UFJ, Ltd. 4,000 Resona Bank, Ltd. 2,000 Total 33,500 Drawdown Amount 0 Available Commitment Line 33,500 27, % The 77 Bank, Ltd. 2, % Development Bank of Japan Inc. 26, % ORIX Bank Corporation 1, % Mizuho Bank, Ltd. 21, % The Kagawa Bank, Ltd. 1, % The Bank of Tokyo-Mitsubishi UFJ,Ltd. 18, % Taiyo Life Insurance Company 1, % Resona Bank, Limited 11, % The Hyakugo Bank, Ltd. 1, % The Norinchukin Bank 11, % THE HIROSHIMA BANK, LTD. 1, % Shinsei Bank, Limited 11, % Mitsui Sumitomo Insurance Company, Limited 1, % Mizuho Trust & Banking Co., Ltd. 9, % The Bank of Yokohama,Ltd. 1, % Aozora Bank, Ltd. 6, % The Minato Bank, Ltd % The Bank of Fukuoka, Ltd. 5, % ShinGinko Tokyo, Limited % The Shinkumi Federation Bank 5, % THE TOHO BANK, LTD % National Mutual Insurance Federation of Agricultural Cooperatives THE NISHI-NIPPON CITY BANK, LTD. 3, % 5, % THE SHIMANE BANK, LTD %

32 Future Management Tactics

33 Management Tactics under Current Investment Environment 32 Aim for mid-to long-term Sustainable growth of unitholder value by taking advantage of a variety of strategies Asset Internal Growth Strategy Environmental Perceptions Vacancy rates of office building mainly in large cities are low and rent level is on a gradually rising trend. There are concerns regarding large supply of high class offices in central Tokyo. Mid-to-long term growth in Hotels and Others sectors is expected as a result of increasing inbound visitors, despite temporary impact from exchange rates. Management Tactics OJR remains high occupancy rate and has improved leasing conditions in each Asset Type by leveraging its strength. External Growth Strategy Environmental Perceptions Competition for asset acquisition continues to be overheated and chances to invest in prime properties are scarce. Investment Tactics Improve our portfolio quality of profitability, growth and stability by leveraging the 3 pillars of our strengths such as Diversified REIT, ORIX Synergy and Operating Expertise. OJR brings in diverse growth opportunities by Selective Investments in various Asset Types. OJR is currently considering Property acquisitions of Offices, Hotels and Complex facilities mainly. Continue to consider flexible replacement strategy (disposal of some properties with concerns on future competitiveness or relatively low profitability). Debt Financial strategy Environmental Perceptions Financing environment is good by the monetary easing policy. Risk of interest rate rise in Japan is growing attributable to impacts by interest rate hike in the US. Management Tactics Reduce financing costs while putting emphasis on strengthening stable financial stability. Secure borrowing capacity for flexible future acquisitions; Utilize LTV and free cash flow in property acquisitions and strategic CAPEX. Equity Environmental Perceptions Unstable conditions are expanding in domestic and global economic and political circumstances. Policy Aim for mid-to long-term Sustainable growth of unitholder value by leveraging Internal/External Growth Strategies and Financial Strategy - Aim to enhance our DPU, NAV per unit and the liquidity of our units. - Consider to set aside internal reserves from capital gains to improve financing stability.

34 Our growth strategy Implement various strategies backed by Diversified REIT, ORIX Synergy and Operating Expertise. Aim for Sustainable growth of unitholder value by strengthening our portfolio as well as our financial stability and diversifying our growth opportunities. Diversified REIT Ample investment opportunities Risk diversification Stable revenue growth ORIX Synergy Pipeline support Professional expertise Nationwide network Operating Expertise Fund management expertise (Note) Direct property management 33 Asset Debt External Growth Strategy Selective investment in properties that can leverage our strengths Various growth drivers Property acquisition by utilizing a variety of funds Property replacement by grasping the market environment Flexible property acquisition Financial Strategy Enhance financial stability including improvement in ratings Reduce financing costs Secure acquisition capacity Effectively use free cash flow for property acquisition and strategic CAPEX Strengthen profitability, stability and growth through operating expertise Internal Growth Strategy Operation by utilizing direct property management Opportunity expansion of rent increase Internal reserves by utilizing capital gain Equity Sustainable growth of DPU Enhancement of NAV per unit Enhancement of liquidity Note : Fund management expertise indicates our expertise in targeting sustainable growth of unitholder value by leveraging our external growth, internal growth and financial strategies.

35 Improvement of Portfolio Quality 34 Aim for improvement of portfolio quality by continuing selective investments in properties that leverage our strength ORIX Group s professional expertise (e.g. operation of hotels) Internal growth through Direct PM Various growth drivers Corporate performance (Offices) Consumer spending (Retail facility) Demand from travelers and tourism (Hotels and Others) Stability Improve Portfolio Quality Growth Profitability Diversification of Asset types and tenant types ORIX Group s proprietary know-how in managing downside risk (Note) Flexible leasing such as change uses of property and sectional leasing Strong relationships with various companies nationwide leveraged to leasing Solid track record in operation of hotels and others for over 25 years. Including a back-up operator etc. Expansion of opportunities in property acquisition of complex facilities etc. as Diversified REIT Improving profitability through property replacement Note : Managing downside risk is to avoid or minimize the value decrease of our properties due to cash flow subtraction resulted from tenants move-out and economy slowdown, etc.

36 Appendix

37 Financial Highlights based on actual results 36 FP26 (Feb. 2015) (million yen) FP30 (Feb. 2017) Operating Revenues 17,028 19,403 19,895 20,365 22,203 Operating Income 7,469 9,121 9,369 9,155 10,650 Ordinary Income 5,776 7,275 7,705 7,591 9,121 Net Income 5,762 7,252 7,698 7,575 9,107 Unitholders' Capital 234, , , , ,867 Net Assets 240, , , , ,823 Total Assets 504, , , , ,534 Number of investment units outstanding (unit) 2,120,884 2,235,735 2,320,701 2,421,323 2,524,623 Net Assets per Unit (yen) 113, , , , ,324 Distribution per Unit (yen) 2,717 2,929 2,989 3,000 3,252 NAV per Unit (yen) (Note1) 130, , , , ,452 NAV per Unit (yen) in consideration of internal reserves (Note2) 130, , , , ,539 FP26 (Feb. 2015) FP27 (Aug. 2015) FP27 (Aug. 2015) FP28 (Feb. 2016) FP28 (Feb. 2016) FP29 (Aug. 2016) FP29 (Aug. 2016) (million yen) FP30 (Feb. 2017) Acquisition price 502, , , , ,441 Number of properties NOI yield 5.0 % 5.0 % 4.9 % 5.1 % 5.1 % Yield after depreciation 3.8 % 3.8 % 3.8 % 4.0 % 4.1 % Unrealized gain/loss 42,507 54,293 69,837 82,635 94,591 Funds From Operation 9,341 9,675 10,549 11,447 12,121 Depreciation expenses 3,487 3,629 3,718 3,860 3,956 Cost of finance lease of property CAPEX Free Cash Flow 2,954 3,467 3,010 3,479 3,364 Note1: NAV per unit refers to the amount calculated by the following formula at any given point in time. (The sum of unitholders capital + unrealized gain/loss) Number of investment units outstanding Note2: NAV per unit in consideration of internal reserves refers to the amount calculated by the following formula at any given point in time. (The sum of unitholders capital + unrealized gain/loss + internal reserves) Number of investment units outstanding

38 Profit and Loss Statement from FP29 (Aug. 2016) to FP32 (Feb. 2018) 37 (unit: million yen) Actual Result for FP29 (Aug. 2016) Actual Result for FP30 (Feb. 2017) Forecast for FP31 (Aug. 2017) Forecast for FP32 (Feb. 2018) Rental revenues 17,892 18,815 19,672 19,768 Other operating revenues 2,410 2,371 2,496 2,342 Gains on sale of real estate properties 62 1, Total Operating revenue 20,365 22,203 22,169 22,110 Property management fees 1,876 1,973 2,090 1,977 Utility charges 1,682 1,690 1,866 1,878 Property-related taxes 1,424 1,414 1,722 1,722 Repair cost Depreciation expenses 3,860 3,956 4,021 3,975 Others Property-related expense 9,669 9,910 10,750 10,651 Asset management fee 1,220 1,298 1,396 1,405 Administrative service fee Other expense Expenses other than property-related expense 1,540 1,642 1,748 1,766 Total Operating expense 11,210 11,553 12,499 12,418 Operating income 9,155 10,650 9,670 9,692 Non-operating income Financing-related costs (Note1) 1,521 1,462 1,475 1,413 Issuance costs of new units Other expense Non-operating expense 1,568 1,532 1,506 1,421 Ordinary income 7,591 9,121 8,166 8,273 Extraordinary income or loss Income before income taxes 7,591 9,121 8,166 8,273 Provision for income taxes Net income 7,575 9,107 8,147 8,254 CAPEX * 1,668 1,106 Note1: The figures refer to the sum of interest expenses, interests on investment corporation bonds, * Main factors of the variance with FP30: Amortization of investment corporation bond issuance costs. Booking of CAPEX of 500million yen for renovation of bauquet halls and chapels in SUNROUTE PLAZA TOKYO [Reference] Assumption of property-related income / loss from 3 acquired properties (Note2), which includes in forecasts above. Actual Result for FP29 (Aug. 2016) Actual Result for FP30 (Feb. 2017) Forecast for FP31 (Aug. 2017) Forecast for FP32 (Feb. 2018) Rental revenues ,090 1,031 Other operating revenue (unit: million yen) Assumption per period based on appraisal value at the time of acquisitions (Note3) Total property-related rental revenue ,095 1,036 1,151 Total property-related expense Property-related taxes Depreciation expenses Property-related rental income / loss Note2: "3 acquired properties" refer to "Hotel Nikko Himeji", "SUNROUTE PLAZA TOKYO" and "(Tentanative) HOTEL LiVEMAX Nagoya-Sakae Annex " Note3: "Property-related rental revenue" as well as "Property-related rental expense excluding Depreciation expenses" are based on appraisal reports at each timing of determinations on acquisitions. "Depreciation expenses" refers to Depreciation expenses estimated by OJR at each timing of determinations on acquisitions.

39 Comparison between Actual Result and Previous Forecast for FP30 (Feb. 2017) 38 Variance between Actual Result and Previous Forecast for FP30 (Feb. 2017) DPU Operating Revenues Net income Amount related to Capital gains per unit (Note 1) DPU excluding amount related to Capital gains Previous Forecast (A) 21,013 million yen 7,573 million yen 3,000 yen 3,000 yen Actual Result (B) 22,203 million yen 9,107 million yen 3,252 yen 47 yen 3,205 yen Change (C)=(B)-(A) +1,190 million yen +1,533 million yen +252 yen +47 yen +205 yen Change of percentage (C)/(A) +5.7% +20.3% +8.4% +6.8% Breakdowns of Variance Impact of on-going operations The initiatives (unit: million yen) Total (Breakdown of change in Net income) Capital gains from Toyo MK Building etc Contribution from SUNROUTE PLAZA TOKYO Others Total of external growth factors ,118 +1,140 Increase in rental revenue from exisiting properties Increase in Surplus on utility charge of existing properties Decrease in property management fees such as leasing fees Decrease in loss on fixed asset retirement in existing properties Others Total of internal growth factors Issuance costs of new units Financing-related costs Others Total (a) Total of financial strategy factors ,063 +1,533 Net income forecasted at the previous financial announcement (b) Net income based on Actual Result (c=a+b) (Note 2) Internal reserves (b') Total of Actual Distribution (c'=c-b') Number of investment units outstanding (d) Actual DPU (yen) (e=c'/d) DPU forecasted at the previous financial announcement (yen) (f) Impact on DPU (yen) (e-f) Amount related to Capital gains per unit (Note 1) (yen) DPU excluding Amount related to Capital gains per unit (yen) 7, ,573 8,029 +1,077 9, , ,210 2,524,623 2,524,623 3, ,252 2, , OJR realized a Capital gain of 1.01 billion yen as a result of Disposition of Toyo MK Building comprehensively in consideration of its future competitiveness. OJR increased internal reserves by 0.89 billion yen while raising DPU by 252 yen. (Note1) Please see the following breakdown regarding Amount related to Capital gain. Breakdown of Amount to Capital gain (Unit: million yen) FP30 (Feb. 2017) Forecast at Previous financial announcement FP30 (Feb. 2017) Actual Result Capital gains 1,016 +1,016 Impact on Net income 1,016 +1,016 Internal reserves etc Impact on total of Distribution Number of investment units outstanding (Units) 2,524,623 Impact on DPU (Yen) Net income 7,573 9,107 +1,533 Impact on Net income by Capital gains 1,016 +1,016 Net income excluding Capital gains 7,573 8, (Note2) The balance of internal reserves was 2.74 billion yen after the initiatives. Change

40 Comparison between Previous and New Forecasts for FP31 (Aug. 2017) 39 Variance between Previous and New Forecasts for FP31 (Aug. 2017) Operating Revenues Net income DPU Previous Forecast (A) 21,311 million yen 7,497 million yen 2,970 yen New Forecast (B) 22,169 million yen 8,147 million yen 3,040 yen Change (C)=(B)-(A) +857 million yen +649 million yen +70 yen Change of percentage (C)/(A) +4.0% +8.7% +2.4% Breakdowns of Variance (unit: million yen) Decrease in earnings due to Disposition of Toyo MK Building Contribution from SUNROUTE PLAZA TOKYO Others Total of external growth factors Increase in rental revenues from existing properties Increase in Surplus on utility charge of exising properties Increase in Repair cost of existing properties Others Total of internal growth factors Issuance costs of new units Financing-related costs Asset Management fees etc Total of financial strategy factors Total (a) Net income forecasted at the previous financial announcement (b) Net income based on New Forecast (c=a+b) Number of investment units outstanding (d) New DPU Forecast (yen) (e=c/d) DPU forecasted at the previous financial announcement (yen) (f) Impact on DPU (yen) (e-f) Impact of on-going operations The initiatives Total (Breakdown of change in net income) , ,497 7, ,147 2,524, ,377 2,680,000 3, ,040 2, , Thanks to increase in occupancy rates and improvements in leasing conditions (please see page 23-24) by controlling move-outs of tenants in existing properties, OJR forecasts to increase rental revenues by 176 million yen. That leads to 70 yen DPU increase.

41 Comparison between Actual Results for FP29 (Aug. 2016) and FP30 (Feb. 2017) 40 Variance between Actual Results for FP29 (Aug. 2016) and FP30 (Feb. 2017) DPU Operating Revenues Net income Amount related to Capital gains per unit (Note 1) DPU excluding Amount related to Capital gains Actual Result for FP29 ended Aug. 31, 2016 (A) 20,365 million yen 7,575 million yen 3,000 yen -102 yen 3,102 yen Actual Result for FP30 ended Feb. 28, 2017 (B) 22,203 million yen 9,107 million yen 3,252 yen 47 yen 3,205 yen Change (C)=(B)-(A) +1,837 million yen +1,532 million yen +252 yen +149 yen 103 yen Change of percentage (C)/(A) +9.0% +20.2% +8.4% 3.3% Breakdowns of variance Impact of on-going operations The initiatives Full fiscal period contributions from 6 properties acquired at the PO in Mar etc Contributions from 5 properties acquired at the PO in Sep etc Loss of Capital gain on Disposition of Nihonbashi East Building etc Contribution from Hotel Nikko Himeji Capital gain from Disposition of Toyo MK Building etc Contribution from SUNROUTE PLAZA TOKYO Total of external growth factors ,132 +1,563 Decrease in rental revenues of exsiting properties Decrease in Repair cost of existing properties Increase in Surplus of Utility charge Decrease in Property management fees such as leasing fees Others Total of internal growth factors Issuance costs of new units Financing-related costs Assset management fees etc Total of financial strategy Total (a) Actual Net income for FP29 (b) Actual Net income for FP30 (c=a+b) (Note 2) Internal reserves etc. (b') Total of Distribution (c'=c-b') Number of investment units outstanding (d) Actual DPU for FP30 (yen) (e=c'/d) Actual DPU for FP29 (yen) (f) Impact on DPU (yen) (e-f) (Note 1) Amount related to Capital gains per Unit (yen) DPU excluding Amount related to Capital gains per unit (yen) (Unit: million yen) Total (Breakdown of change in Net income) ,077 +1,532 7,575 7,575 8,029 +1,077 9, , ,210 2,524,623 2,524,623 3, ,252 3,000 3, properties acquired at the PO in Mar. 2016: Aoyama Suncrest Building (Additional acquition), Round-Cross Akihabara, ORIX Yodoyabashi Bldg., Hamamatsu Act Tower, KONAMI SPORTS CLUB KORIEN, Kita aoyama Building 5 properties acquired at the PO in Sep. 2016: Gaien Nishi-dori Building, SAPPORO BRICK CUBE, Albore Kagoshima, PRIZE TENJIN, TAKANAWA DUPLEX C's OJR realized 252 yen DPU increase arising from full fiscal period contributions from 6 properties acquired at the PO in Mar. 2016, contributions from 5 properties acquired at the PO in Sep and Capital gains from dispositions. (Note1) Please see the following breakdown regarding Amount related to Capital gains. Breakdown of Amount related to Capital gains (unit: million yen) FP29 (Aug. 2016) Actual Result FP30(Feb. 2017) Actual Result (Note2) The balance of internal reserves was 2.74 billion yen after the initiatives. Change Capital gains 62 1, Impact on Net income 62 1, Internal reserves etc Impact on total of Distribution Number of investment units outstanding (Units) 2,421,323 2,524, ,300 Impact on DPU (Yen) Net income 7,575 9,107 +1,532 Impact on Net income by Capital gains 62 1, Net income excluding Capital gains 7,513 8,

42 Comparison between Actual Result for FP30 (Feb. 2017) and Forecast for FP31(Aug. 2017) 41 Variance between actual Result for FP30 (Feb. 2017) and Forecast FP31 (Aug. 2017) Operating Revenues Net income DPU Amount related to Capital gains per unit (Note) DPU excluding Amount related to Capital gains Actual Result for FP30 ended Feb. 28, 2017 (A) 22,203 million yen 9,107 million yen 3,252 yen ( 注 1) 47 yen 3,205 yen Forecast for FP31 ending Aug. 31, 2017 (B) 22,169 million yen 8,147 million yen 3,040 yen 3,040 yen Change (C)=(B)-(A) -34 million yen -960 million yen -212 yen -47 yen -165 yen Change of percentage (C)/(A) -0.2% -10.5% -6.5% -5.1% Breakdowns of Variance Property-related taxes regarding 6 properties acquired in Full fiscal period contributions from 5 properties at the PO in Sep etc Full fiscal year contribution from Hotel Nikko Himeji Non-recurring Capital gain etc. realized from Toyo MK Building - 1,060-1,060 Full fiscal period contribution from SUNROUTE PLAZA TOKYO Total of external growth factors Increase in rental revenues from existing properties Property-related taxes regarding 5 properties acquired at the PO in Mar Decrease in Repair cost of existing properties Decrease in Surplus of Utility charge Increase in Property management fees such as leasing fees Others Total of internal growth factors Issuance costs of new units Financing-related costs Asset management fees etc Total of financial strategy factors Total (a) Actual Net income for FP30 (b) Net income forecasted for FP31 (c=a+b) Number of investment units outstanding (d) DPU Forecast for FP31 (yen) (e=c/d) Actual DPU for FP30 (yen) (f) Impact on DPU (yen) (e-f) Amount related to Capital gains per unit (yen) (Note ) DPU excluding Amount related to Capital gains per unit (yen) Impact of on-going operations The initiatives (unit: million yen) Total (Breakdown of change in net income) ,029 +1,077 9,107 7, ,147 2,524, ,377 2,680,000 3, ,040 3, , properties acquired in 2016: SAPPORO BRICK CUBE, TAKANAWA DUPLEX C's, Albore Kagosbima,Gaien Nishi-dori Building, PRIZE TENJIN, Hotel Nikko Himeji 5 properties acquired at the PO in Sep. 2016: Gaien Nishi-dori Building, SAPPORO BRICK CUBE, Albore Kagosbima, PRIZE TENJIN, TAKANAWA DUPLEX C's 5 properties acquired at the PO in Mar. 2016: Aoyama Suncrest Building (Additional acquisition), Round-Cross Akihabara, ORIX Yodoyabashi Building, Hamamatsu Act Tower, Kita Aoyama Building DPUs are negatively impacted by 165 yen per unit through on-going operations including 125 yen per unit through property-related taxes and 47 yen per unit through non-recurring capital gain from Disposition of Toyo MK Building. Thus, DPUs decreases by 212 yen per unit in total. (Note) Please see the following breakdown regarding Amount related to Capital gain. Breakdown of Amount related to Capital gains (unit: million yen) FP30 (Feb. 2017) Actual Result FP31(Aug. 2017) Forecast Change Capital gains 1,016-1,016 Impact on Net income 1,016-1,016 Internal reserves etc Impact on total of Distribution Number of investment units outstanding (Units) 2,524,623 2,680, ,377 Impact on DPU (Yen) Net income 9,107 8, Impact on Net income by Capital gains 1,016-1,016 Net income excluding Capital gains 8,091 8,

43 Comparison between Forecasts for FP31 (Aug. 2017) and FP32 (Feb. 2018) 42 Variance between forecasts for FP31 (Aug. 2017) and FP32 (Feb. 2018) Operating Revenues Net income DPU Forecast for FP31 ending Aug. 31, 2017 (A) 22,169 million yen 8,147 million yen 3,040 yen Forecast for FP32 ending Feb. 28, 2018 (B) 22,110 million yen 8,254 million yen 3,080 yen Change (C)=(B)-(A) -58 million yen +107 million yen +40 yen Change of percentage (C)/(A) -0.3% +1.3% +1.3% Breakdowns of Variance Decrease in contributions from Hotel Nikko Himeji etc Total of external growth factors Increase in rental revenues in existing properties Decrease in Surplus on utility charge of existing properties Others Total of internal growth factors Issuance costs of new units Financing-related costs Asset management fee etc Total (a) Impact of on-going operations The initiatives (unit: million yen) Total (Breakdown of change in net income) Total of financial strategy factors (Note) As for detail of revenue Forecast for FP32 ending Feb. 28, 2018, please refer to the following. Impact of Forecast for FP32 ending Feb. 28, 2018 after the initiatives (unit: million yen) Property-related rental income 10, ,459 NOI 14, ,508 Depreciation expenses and cost for finance lease of property Expenses other than Property-related rental expense Non-operating profit and loss Corporate taxes Net income Number of investment units issued and outstanding (unit) DPU (yen) Impact of on-going operations The initiatives Total 3, ,049-1, ,766-1, , , ,254 2,524, ,377 2,680,000 3, ,080 Net income forecasted for FP31 (b) 7, ,147 Estimated property-related tax (yen) Net income forecasted for FP32 (c=a+b) 7, ,254 DPU (yen) 3, ,065 Number of investment units outstanding (d) 2,524, ,377 2,680,000 DPU Forecast for FP32 (yen) (e=c/d) DPU Forecast for FP31 (yen) (f) Impact on DPU (yen) (e-f) 3, ,080 3, , DPU is forecasted to increase by 40 yen through increase in rental revenues by 154 million yen (61 yen DPU increase) attributable to high occupancy rates and improvements in leasing conditions(please see Page 23-24).

44 Overview of Public Offerings for Consecutive 9 Fiscal Periods 43 Drive Sustainable growth of unitholder value through public offering by grasping favorable capital market Items FP23 (Mar. 2013) FP24 (Oct. 2013) FP25 (Mar. 2014) FP26 (Sep. 2014) FP27 (Mar. 2015) FP28 (Sep. 2015) FP29 (Mar. 2016) FP30 (Sep. 2016) FP31 (Mar. 2017) 168,947 units 96,377 units 278,680 units 154,710 units 114,851 units 84,966 units 100,622 units 103,300 units 155,377 units Number of issued new investment units Number of investment units issued and outstnding after Third-Party Allotment Base Price (closing price of pricing date) Breakdow n Breakdow n Breakdow n Breakdow n Breakdown Breakdow n Breakdown Breakdow n Breakdown Public Offering: Public Offering: Public Offering: Public Offering: Public Offering: Public Offering: Public Offering: Public Offering: Public Offering: 160,915 units 91,788 units 265,410 units 147,343 units 109,381 units 84,966 units 95,830 units 98,381 units 147,978 units Third-Party Allotment: Third-Party Allotment: Third-Party Allotment: Third-Party Allotment: Third-Party Allotment: Third-Party Allotment: Third-Party Allotment: Third-Party Allotment: Third-Party Allotment: 8,032 units 4,589 units 13,270 units 7,367 units 5,470 units 0 units 4,792 units 4,919 units 7,399 units # 1,591,117 units 1,687,494 units 1,966,174 units 2,120,884 units 2,235,735 units 2,320,701 units 2,421,323 units 2,524,623 units 2,680,000 units 125,800 yen 121,500 yen 126,000 yen 133,500 yen 164,500 yen 156,100 yen 168,800 yen 178,400 yen 176,300 yen Issue Price 122,655 yen 118,462 yen 122,850 yen 130,162 yen 160,387 yen 149,467 yen 164,580 yen 171,112 yen 168,850 yen Total amount of issue price 20,722 million yen 11,417 million yen 34,235 million yen 20,137 million yen 18,420 million yen 12,699 million yen 16,560 million yen 17,675 million yen 26,235 million yen Issue Value 118,629 yen 114,574 yen 118,818 yen 126,023 yen 155,287 yen 144,714 yen 159,347 yen 165,671 yen 163,568 yen Total issue Value 20,042 million yen 11,042 million yen 33,112 million yen 19,497 million yen 17,834 million yen 12,295 million yen 16,033 million yen 17,113 million yen 25,414 million yen Date of resolution of Issuance March 8, 2013 October 15, 2013 March 3, 2014 September 1, 2014 March 2, 2015 August 14, 2015 March 1, 2016 August 15, 2016 February 10, 2017 Pricing date March 18, 2013 October 23, 2013 March 11, 2014 September 9, 2014 March 10, 2015 August 24, 2015 March 9, 2016 August 23, 2016 February 20, 2017 Payment date (Public Offering) Payment date (Third-Party Allotment) March 26, 2013 October 30, 2013 March 18, 2014 September 17, 2014 March 17, 2015 September 1, 2015 March 16, 2016 September 1, 2016 March 1, 2017 April 24, 2013 November 27, 2013 April 16, 2014 October 9, 2014 April 10, 2015 ー April 12, 2016 September 28, 2016 March 28, 2017

45 Disposition of Property for FP30(Feb. 2017) 44 Disposed of one office in view of future competitiveness, with consideration of market situation Set aside 0.89 billion yen from capital gain for the future stable DPU growth Property Name Area Buyer Contract date Acquisition price (million yen) Disposition price (million yen) Book value (million yen) Capital gain (million yen) NOI yield (Note) Yield after depreciation (Note) Office Toyo MK Building Remaining Tokyo Wards A Third Party (Not-disclosed) Dec. 7, ,270 4,950 3,833 1, % 6.0% Note1 : Actual figures in FP29 (Aug.2016) are used.

46 Portfolio Status 45 Portfolio Profile (After the initiatives) Note: Occupancy rate is stated according to figures as of Feb.28,2017. Total acquisition price Number of Occupancy rate NOI yield Yield after (billion yen) properties (Note)(%) (%) depreciation(%) Offices Retail Facilities Residential Properties Logistics Facilities Hotels and Others Portfolio overall Portfolio composition based on acquisition price (After the initiatives) Logistics Facilities 6.0% Hotels and Others 9.5% Other Areas 26.4% Greater Tokyo Area 73.6% Residential Properties 11.0% Asset Type Area 6 Central Tokyo Wards 41.9% Offices 55.9% Retail Facilities 17.7% Other Parts of the Greater Tokyo Area 20.3% Remaining Tokyo Wards 11.4%

47 Trend of Portfolio Growth 46 Drive flexible property replacements by grasping the market environment Trend of Portfolio Growth (billion yen) Offices Logistics Facilities Retail Facilities Residential Properties Hotels and Others Dispositions End of FP1 (Aug. 2002) End of FP30 (Feb. 2017) After the initiatives Note: The above chart indicates the accumulated acquisition price of each acquisition price and disposition price as of each fiscal period.

48 Portfolio Summary 47 Type Area Property Offices Logistics Facilities 6 Central Tokyo Wards Remaining Tokyo Wards Other Parts of the Greater Tokyo Area Other Areas Aoyama Suncrest Building Nov , Nihon Jisho Minami Aoyama Building Nov , Round-Cross Ichi-bancho Mar , CUBE Daikanyama Jan , Round-Cross Nishi Shinjuku Jun , aune Yurakucho Feb , DT Gaien Feb , Central Cross Avenue Harajuku Jun , Yoyogi Forest Building Jun , Tokyo Wards J-ONE SQUARE Feb , Round-Cross Minami Azabu May , JouLe SHIBUYA May , Round-Cross Akasaka Oct , SO-CAL LINK OMOTESANDO Apr , Round-Cross Mita May , Kita Aoyama Building Apr Round-Cross Shiba Daimon Oct , Remaining Tokyo Wards aune Ikebukuro Aug , Round-Cross Tsukiji May , aune Kohoku Mar , ORIX Shiba 2-chome Building Jan , aune Makuhari Feb , Other Parts of Aoyama 246 Building Nov , Maruetsu Sagamino Nov , the Greater Tokyo Round-Cross Shinjuku Oct , CROSS GARDEN KAWASAKI Feb , Area Seafort Square Center Building Jun , Tecc Land Totsuka(Land) - 6, Retail ORIX Akasaka 2-chome Building Nov , Clio Fujisawaekimae Feb , Facilities Round-Cross Shinjuku 5-chome Oct , Kobe Momoyamadai Shopping Center(Land) - 3, Nihonbashi Honcho 1-chome Building Mar , Okayama Kume Retail Facility Nov , Round-Cross Shibuya Mar , Home Center Musashi Sendai Izumi(Land) - 2, ORIX Suidobashi Building Oct , aune Sapporo Ekimae Jul , ORIX Shinagawa Building Jun , Morioka Minami Shopping Center Sansa Nov , ORIX Real Estate Nishi Shinjuku Building Apr , GRAN MART Tegata Jul OX Tamachi Building Jan , AEON TOWN Sendai-Izumiosawa(Land) - 3, Other Areas MG Shirokanedai Building May , Cross Mall Shimonoseki-Chofu May , SHIBUYA PINE Bldg. Oct , intervillage OH! MAGARI Jun , MG Ichigaya Building Jan , Valor Suzuka Shopping Center Apr , Round-Cross GINZA 2-chome Aug , aune Sendai Nov , ARK Hills South Tower Jul , Friend Town Fukaebashi (Land) - 2, Round-Cross Akihabara Feb , KONAMI SPORTS CLUB KORIEN Nov , Gaien Nishi-dori Building Dec , PRIZE TENJIN Aug , Carrot Tower Nov , Total of Retail Facilities 110, Beside Kiba Aug , We Will Hatchobori Mar , ORIX Ikebukuro Building Jul , Shibaura Island Air Tower Mar , Central KN Jiyugaoka Plaza Dec , Belle Face Togoshi Statio Nov , Tokyo Wards ORIX Meguro Building Jan , Belle Face Meguro Feb , Akihabara Business Center Oct , Central Crib Roppongi Jan , Neo City Mitaka Sep , Belle Face Kamata Nov , ORIX Koraibashi Building Jul , Belle Face Osaka Shinmachi Feb , Lunar Sendai Feb , Other Areas Belle Face Amagasaki Feb , ORIX Nagoya Nishiki Building Jan , Belle Face Kanazawa Kohrinbo Oct , ORE Sapporo Building Nov , Total of Residential Properties 68, ORIX Kobe Sannomiya Building Sep , Central Tokyo Wards TAKANAWA DUPLEX C's Aug , ORE Nishiki 2-chome Bldg. Aug , Other Parts of Cross Gate Sep , DOJIMA PLAZA BLDG. Feb , the Greater Tokyo GOOD TIME LIVING Shin-urayasu Oct , PRIME SQUARE HIROSE-DORI May , Hotels and Area SUNROUTE PLAZA TOKYO Jun , Hamamatsu Act Tower Aug , Others VIA INN SHINSAIBASHI BLDG. Mar , ORIX Yodoyabashi Bldg. Mar , HOTEL KEIHAN SAPPORO Apr , Other Areas SAPPORO BRICK CUBE May , Richmond Hotel Yamagata Ekimae Dec , Albore Kagoshima Nov , Hotel Nikko Himeji Sep , Total of Offices 348, Total of Hotels and Others 58, Toda Logistics Center Mar , Total 622, Ichikawa Logistics Center Jun , Iwatsuki Logistics Center Apr , Sakai Logistics Center North Building Jul , Komaki Logistics Center Sep , Total of Logistics Facilities 37, Note1: Percentage to the total acquisition price refers to the acquisition price of each property under management as a proportion of the total acquisition price. Note2:Figures are rounded to the first decimal place for the Percentage to the total acquisition price. Totals for the Percentage to the total acquisition price may not tally due to this rounding. Note3:The properties acquired in and after FP30 (Feb. 2017) are shown in red. Note4:OJR changed its properties names from KANDA MATSUNAGACHO BUILDING to Round-Cross Akihabara on Dec. 1, Completion Acquisition Price (million yen) Total Acquisition Price(%) Type Area Property Completion Acquisition Price (million yen) Other Parts of Round-Cross Kawasaki Jan , Belle Face Hongo Yumicho Nov , Remaining the Greater Tokyo Omiya Miyacho Building Sep , Belle Face Mishuku Jun , Residential Tokyo Wards Area Omiya Shimocho 1-chome Building Aug , West Park Tower IKEBUKURO Dec , Properties ORE Omiya Building Jul , Belle Face Higashijujo Dec , Other Parts of Nagoya Itochu Building Feb , the Greater Tokyo Area R-Styles Musashi-Kosugi Sep , Other Areas After the initiatives Total Acquisition Price(%)

49 Portfolio Map 48 After the initiatives

50 Portfolio Data 49 Average Acquisition/Disposition Price after IPO (Note1) Acquisition Price 5.94 billion yen Acquisition after IPO Building Age (Note2) 3.14 billion yen Disposition after IPO 1-5 billion yen 50.2% Under 1billion yen 7.2% Average 2.55 billion yen End of FP 1 (Aug. 2002) Over 10 billion yen 26.7% 5-10 billion yen 15.9% 1-5 billion yen 30.7% Under 1billion yen 0.3% Average 5.71 billion yen 5-10 billion yen 31.7% Over 10 billion yen 37.3% After the initiatives 5-10yrs 24.8% Under 5yrs 19.0% Average 12.1 yrs Over 20yrs 20.4% 10-15yrs 29.6% End of FP 1 (Aug. 2002) 15-20yrs 6.2% 5-10yrs 25.7% Under 5yrs 6.9% Average 14.8 yrs 10-15yrs 34.2% Over 20yrs 26.6% After the initiatives 15-20yrs 6.7% Note1: The figures exclude an additional acquisition of Aoyama Suncrest Building owned at IPO and dispositions of a part of properties. Note2: The figures of Kobe Momoyamadai SC (Land), Home Center Musashi Sendai Izumi (Land), Tecc Land Totsuka (Land), AEON TOWN Sendai-Izumiosawa (Land) and Friend Town Fukaebashi (Land) are not included in the pie charts.

51 Overview of Appraisal Value 50 FP21 Aug End FP22 Feb End FP23 Aug End FP24 Feb End FP25 Aug End FP26 Feb End FP27 Aug End FP28 Feb End FP29 Aug End FP30 Feb End Number of properties (%) Appraisal value by Asset type 5 0 FP21 Aug End Unrealized gain/loss ratio -0.6 FP22 Feb End (Note 3) 1.3 FP23 Aug End 3.5 FP24 Feb End Note 1: Unrealized gain/loss is calculated by subtracting the book value from the appraisal value at the same time. Note 2: Unrealized gain/loss ratio is calculated in dividing the unrealized gain/loss by the book value at the same time. Note 3: Figures for Cap Rate in Appraisal value by asset type are calculated on a weighted average basis according to appraisal values and rounded to the first decimal place. Note 4: The term refers to Aoyama Suncrest Building, Tecc Land Totsuka (Land), Kobe Momoyamadai Shopping Center (Land), Home Center Musashi Sendai Izumi (Land), AEON TOWN Sendai-Izumiosawa (Land) and Friend Town Fukaebashi (Land) for which the Cap Rate are not calculated based on the direct capitalization method. 6.0 FP25 Aug End 9.0 FP26 Feb End 11.2 FP27 Aug End 13.3 FP28 Feb End 15.1 FP29 Aug End 16.2 FP30 Feb End FP30 (Feb. 2017) Change from FP29 (Aug. 2016) No.of Change of Change of Property Change of Change of Properties Book Value Appraisal Cap Rate Gain/Loss Appraisal Gain/Loss Appraisal Ratio Cap Rate (million yen) (million yen) (million yen) (million yen) (million yen) Offices , , % 39,161 5, % -0.1% 6,596 Logistics Facilities 5 31,974 42, % 10, % -0.1% 850 Retail Facilities 23 84, , % 19,268 1, % -0.1% 1,570 Residential Properties 14 64,084 76, % 12,675 1, % -0.1% 1,927 Hotels and Others 6 21,973 31, % 9, % -0.2% 1,197 Total:excluding properties not appraised by the direct capitalization method(note 4) and acquired in and after FP30 (Feb. 2017) , , % 90,836 8, % -0.1% 12,142 <Reference> Appraisal value (billion yen) Book value (billion yen) Unrealized gain/loss (billion yen) (Note1) Unrealized gain/loss ratio (%) (Note2) Properties not appraised by the direct capitalization method (Note 4) 6 28,034 31,340-3, Properties acquired in FP30 (Feb. 2017) 4 45,420 45, % Properties owned as of the end of FP30 (Feb. 2017) , ,040-94, Properties acquired in FP31 (Aug. 2018) Properties owned after the initiatives , ,040-94,

52 Appraisal Value List-1 Appraisal value of all properties after the initiatives *Area symbol: 6 Central Tokyo Wards Remaining Tokyo Wards Other Parts of the Greater Tokyo Area Other Areas 51 FP30 (Feb. 2017) Change from FP29 (Aug. 2016) Change of Change of Type Area Property Change of Change of Book Value Appraisal Cap Rate Gain/Loss Appraisal Gain/Loss Appraisal Ratio Cap Rate (million yen) (million yen) (million yen) (million yen) (million yen) Aoyama Suncrest Building(note) 10,224 12,450-2, % Round-Cross Ichi-bancho 2,993 3, % % -0.1% 71 Round-Cross Nishi Shinjuku 2,410 3, % 1, % -0.1% 109 DT Gaien 2,117 2, % % -0.1% 136 Yoyogi Forest Building 1,412 1, % % -0.1% 37 Round-Cross Minami Azabu 1,229 1, % % -0.1% 33 Round-Cross Akasaka 2,718 2, % % -0.1% 8 Round-Cross Mita 1,697 1, % % -0.1% 39 Round-Cross Shiba Daimon 2,193 3, % % -0.1% 125 Round-Cross Tsukiji 2,921 3, % % -0.1% 39 ORIX Shiba 2-chome Building 6,236 9, % 2, % -0.1% 136 Aoyama 246 Building 5,312 8, % 3, % -0.1% 222 Round-Cross Shinjuku 7,444 10, % 2, % -0.1% 211 Seafort Square Center Building 16,624 13, % -2, % -0.1% 107 ORIX Akasaka 2-chome Building 19,858 22, % 2, % -0.1% 303 Round-Cross Shinjuku 5-chome 3,884 4, % % -0.1% 121 Nihonbashi Honcho 1-chome Building 9,532 8, % -1, % -0.1% 141 Round-Cross Shibuya 3,267 3, % % -0.1% 133 ORIX Suidobashi Building 2,733 2, % % -0.1% 35 ORIX Shinagawa Building 14,330 12, % -1, % -0.1% 155 ORIX Real Estate Nishi Shinjuku Building 13,104 14, % % -0.1% 343 OX Tamachi Building 6,622 7, % 1, % -0.1% 163 MG Shirokanedai Building 8,550 8, % % 0.0% 44 SHIBUYA PINE Bldg. 3,484 4, % % -0.1% -9 MG Ichigaya Building 3,042 3, % % -0.1% 34 Round-Cross GINZA 2-chome 5,198 5, % % -0.1% 153 Offices ARK Hills South Tower 21,970 23, % 1, % -0.1% 458 Round-Cross Akihabara 4,351 4, % % -0.1% 17 Gaien Nishi-dori Building 9,057 9, % Carrot Tower 3,790 6, % 2, % -0.1% 135 Beside Kiba 1,983 2, % % -0.1% 33 ORIX Ikebukuro Building 8,213 12, % 4, % -0.1% 342 KN Jiyugaoka Plaza 3,065 3, % % -0.1% 57 ORIX Meguro Building 6,027 7, % 1, % -0.1% 353 Akihabara Business Center 4,576 6, % 1, % -0.1% 139 Neo City Mitaka 1,929 2, % 1, % -0.1% 38 Round-Cross Kawasaki 4,012 6, % 2, % -0.1% 96 Omiya Miyacho Building 3,804 4, % 1, % -0.1% 111 Omiya Shimocho 1-chome Building 3,329 4, % 1, % -0.1% 115 ORE Omiya Building 7,165 7, % % -0.1% 144 Nagoya Itochu Building 4,547 5, % % -0.1% 112 ORIX Koraibashi Building 4,474 5, % % -0.1% 115 Lunar Sendai 7,420 6, % -1, % -0.1% 159 ORIX Nagoya Nishiki Building 10,798 8, % -2, % -0.1% 134 ORE Sapporo Building 3,408 6, % 2, % -0.1% 212 ORIX Kobe Sannomiya Building 3,283 4, % % -0.1% 91 ORE Nishiki 2-chome Bldg. 10,469 12, % 1, % -0.1% 405 DOJIMA PLAZA BLDG. 9,561 10, % % -0.1% 206 PRIME SQUARE HIROSE-DORI 7,136 8, % 1, % -0.1% 89 Hamamatsu Act Tower 12,174 12, % % -0.2% -66 ORIX Yodoyabashi Bldg. 5,045 5, % % -0.1% 97 SAPPORO BRICK CUBE 5,264 5, % % -0.1% 83 Albore Kagoshima 1,311 1, % % -0.1% 9 Total of Offices 327, ,980-41, Note: For the Aoyama Suncrest Building, the appraisal value and Cap Rate of the property is not calculated based on the direct capitalization method.

53 Appraisal Value List-2 52 *Area symbol: 6 Central Tokyo Wards Remaining Tokyo Wards Other Parts of the Greater Tokyo Area Other Areas Logistics Facilities Retail Facilities Residential Properties Hotels and Others Total FP30 (Feb. 2017) Change from FP29 (Aug. 2016) Change of Change of Change of Change of Book Value Appraisal Cap Rate Gain/Loss Appraisal Gain/Loss Appraisal Ratio Cap Rate (million yen) (million yen) (million yen) (million yen) (million yen) Toda Logistics Center 8,465 10, % 2, % -0.1% 174 Ichikawa Logistics Center 7,087 9, % 1, % -0.1% 228 Iwatsuki Logistics Center 6,006 7, % 1, % -0.1% 200 Sakai Logistics Center North Building 8,142 12, % 4, % 0.0% 157 Komaki Logistics Center 2,271 3, % % -0.1% 91 Total of Logistics Facilities 31,974 42,390-10, Nihon Jisho Minami Aoyama Building 2,463 4, % % -0.1% 64 CUBE Daikanyama 2,388 3, % 1, % -0.1% 55 aune Yurakucho 9,878 11, % 1, % 0.0% 16 Cross Avenue Harajuku 4,794 5, % % -0.1% 77 J-ONE SQUARE 1,515 1, % % -0.1% 22 JouLe SHIBUYA 7,524 8, % 1, % -0.1% 115 SO-CAL LINK OMOTESANDO 2,312 2, % % -0.1% 21 Kita Aoyama Building % % -0.1% 22 aune Ikebukuro 6,258 7, % 1, % -0.1% 353 aune Kohoku 3,494 4, % % -0.1% 95 aune Makuhari 3,123 4, % 1, % -0.1% 166 Maruetsu Sagamino 2,209 2, % % -0.1% 39 CROSS GARDEN KAWASAKI 12,211 15, % 2, % -0.1% 287 Tecc Land Totsuka(Land)(note) 6,073 6, % - 30 Clio Fujisawaekimae 3,882 4, % % -0.1% 57 Kobe Momoyamadai Shopping Center(Land)(note) 3,388 3, % - 1 Okayama Kume Retail Facility 2,426 3, % % -0.1% 50 Home Center Musashi Sendai Izumi(Land)(note) 2,381 2, % - 50 aune Sapporo Ekimae 1,859 2, % % -0.1% 37 Morioka Minami Shopping Center Sansa 2,698 3, % % -0.1% 55 AEON TOWN Sendai-Izumiosawa(Land)(note) 3,540 3, % - 70 GRAN MART Tegata 948 1, % % -0.1% 16 Cross Mall Shimonoseki-Chofu 2,312 2, % % -0.1% -220 intervillage OH! MAGARI 4,966 6, % 1, % -0.1% 119 Valor Suzuka Shopping Center 3,113 3, % % -0.1% 52 aune Sendai 2,000 2, % % -0.1% 43 Friend Town Fukaebashi (Land)(note) 2,424 2, % - 10 KONAMI SPORTS CLUB KORIEN 1,590 1, % % -0.1% 19 PRIZE TENJIN 4,568 4, % Total Retail Facilities 107, ,900-20, We Will Hatchobori 2,139 2, % % -0.1% 43 Shibaura Island Air Tower 5,062 7, % 2, % -0.1% 138 Belle Face Togoshi Statio 2,403 3, % % -0.1% 88 Belle Face Meguro 3,160 3, % % -0.1% 62 Central Crib Roppongi 7,511 8, % % -0.1% 190 Belle Face Kamata 3,136 4, % 1, % -0.1% 151 Belle Face Hongo Yumicho 3,038 3, % % -0.1% 117 Belle Face Mishuku 1,933 2, % % -0.1% 33 West Park Tower IKEBUKURO 20,202 22, % 2, % -0.1% 597 Belle Face Higashijujo 2,920 3, % % 0.0% 31 R-Styles Musashi-Kosugi 4,232 5, % % -0.1% 237 Belle Face Osaka Shinmachi 3,095 4, % 1, % -0.1% 116 Belle Face Amagasaki 2,965 3, % % -0.1% 76 Belle Face Kanazawa Kohrinbo 2,281 2, % % -0.1% 43 Total of Residential Properties 64,084 76,760-12, TAKANAWA DUPLEX C's 2,863 2, % % 0.0% 55 Cross Gate 9,848 17, % 7, % -0.2% 683 GOOD TIME LIVING Shin-urayasu 1,494 1, % % -0.1% 28 SUNROUTE PLAZA TOKYO 26,977 26, % VIA INN SHINSAIBASHI BLDG. 3,060 3, % % -0.2% 274 HOTEL KEIHAN SAPPORO 2,472 3, % % -0.2% 125 Richmond Hotel Yamagata Ekimae 2,234 2, % % -0.1% 30 Hotel Nikko Himeji 4,817 4, % Total of Hotel and Others 53,768 63,010-9, , ,040-94, Type Area Property Note: For the Tecc Land Totsuka (Land), Kobe Momoyamadai Shopping Center (Land), Home Center Musashi Sendai Izumi (Land), AEON TOWN Sendai-Izumiosawa (Land) and Friend Town Fukaebashi (Land), the appraisal value and Cap Rate are not calculated based on the direct capitalization method.

54 Investment Units 53 End of FP29 (Aug. 2016) 2,421,323 units End of FP30 (Feb. 2017) 2,524,623 units Ownership ratio by Unitholder Individuals Other Japanese Corp. 8.1% 7.7% 62.9% 65.1% 96.0% 2.4% 2.2% 0.9% 0.9% 26.5% 24.9% 0% 20% 40% 60% 80% 100% Number of Unitholders ratio by Type Individuals Other Japanese Corp. End of FP29 (Aug. 2016) 20,935 Financial Institution including Securities Co. Foreign Corp. Foreign Individuals Financial Institution including Securities Co. Foreign Corp. Foreign Individuals 1.6% 1.5% 1.6% 1.4% Top 10 Unitholders Top 10 Unitholders Japan Trustee Services Bank, Ltd. (Trust accounts) Trust & Custody Services Bank, Ltd. (Securities investment trust accounts) The Master Trust Bank of Japan, Ltd. (Trust accounts) The Nomura Trust and Banking Co., Ltd. (Investment accounts) NOMURA BANK (LUXEMBOURG) S. A. STATE STREET BANK AND TRUST COMPANY STATE STREET BANK AND TRUST COMPANY THE BANK OF NEW YORK MELLON SA/NV 10 STATE STREET BANK - WEST PENSION FUND CLIENTS - EXEMPT End of FP30 (Feb. 2017) Number of Units Share% (Note) 609, , , , , , , , , End of FP30 (Feb. 2017) 20, % 0% 20% 40% 60% 80% 100% GOLDMAN SACHS INTERNATIONAL 26, Note: Each share in Top 10 Unitholders is rounded down to the nearest whole number..

55 Environmental Efforts 54 Obtained Green Star assessment from GRESB, an index created by European institutional investors Obtained DBJ Green Building Certification for 18 properties as of FP30 financial announcement date as a result of environmental efforts GRESB OJR has participated in the Global Real Estate Sustainability Benchmark (GRESB) survey since FY2013. After FY2015, OJR received the highest rating Green Star among 4 ranks for its environmental and sustainability initiatives with high evaluation of its Management & Policy and Implementation & Measurement *Global Real Estate Sustainability Benchmark (GRESB) is a benchmark developed by a group consisting primarily of European pension funds to evaluate environmental, social and other considerations of real estate companies and real estate managers. Major European, U.S. and Asian institutional investors utilize the benchmark in their investment decisionmaking processes. DBJ Green Building Certification ARK Hills South Tower Sakai Logistics Center North Building ORE Nishiki 2-chome Building Iwatsuki Logistics Center NEW 1 Rank up Properties with the best class environmental & social awareness Properties with exceptionally high environmental & social awareness Properties Properties Properties with excellent environmental & social awareness ORIX Akasaka 2-chome Building ORE Sapporo Building ORIX Shinagawa Building ORIX Kobe Sannomiya Building ORIX Nagoya Nishiki Building Round-Cross Shinjuku PRIME SQUARE HIROSE-DORI West Park Tower IKEBUKURO Toda Logistics Center 1 Rank up Properties with high environmental & social awareness Seafort Square Center Building Nihonbashi Honcho 1-chome Building Komaki Logistics Center Ichikawa Logistics Center CROSS GARDEN KAWASAKI *DBJ Green Building Certification is a system under which the objective of promoting an increase of real estate that demonstrates high consideration not only for environmental performance of the building but also disaster prevention and anticrime measures as well as societal demands from various stakeholders of real estate (Green Building), the Development Bank of Japan Inc. conducts an assessment based on a scoring model that it developed and then selects real estate that meets the needs of the times.