Notice of Acquisition of Assets and Lease Contract with New Tenants

Transcription

1 August 16, 2016 For Immediate Release Real Estate Trust Securities Issuer: J-REIT Shiodome City Center, Higashi-Shimbashi, Minato-ku, Tokyo Representative: Yoji Tatsumi, Executive Director (Security Code: 3281) Asset Management Company: Japan Advisors Inc. Representative: Yoji Tatsumi President and CFO Contact: Aki Sadahiro Head of Accounting Department (TEL: ) Notice of Acquisition of Assets and Lease Contract with New Tenants Japan Advisors Inc., to which J-REIT entrusts management of its assets, has decided today to acquire the four properties shown below (hereinafter referred to as assets planned for acquisition ) in the form of trust beneficiary interests, with lease contracts with new tenants as explained below. 1. Overview of the acquisitions Property number Property name (1) Agreement date: August 16, 2016 (2) Scheduled acquisition date: Refer to the column Scheduled acquisition date in the table above. (3) Seller: Refer to 4. Seller Profile below. (4) Financing for acquisition: Proceeds from the issuance of new investment units as resolved at the meeting of J-REIT s board of directors held on August 16, 2016, proceeds from borrowing of funds and cash on hand (Note) (5) Settlement method: To be paid in a lump sum upon delivery. (6) Annual contracted rent: 2,377 million yen (4 properties) (Note) J-REIT will make an announcement regarding the borrowing of funds as soon as the borrowing decision is made. In case the payment date for the issuance of new investment units is September 2, 2016 or later, J-REIT will use the proceeds from borrowings in place of the proceeds from the issuance of new investment units and use the proceeds from the issuance of new investment units for a partial repayment of the relevant borrowings. 2. Reason for the acquisitions Location (city or ward, prefecture) Scheduled acquisition date Acquisition price (million yen) Aiko, Atsugi Two Logistics Special Purpose Tokyo-29 Atsugi II 21,100 Kanagawa Company September 1, 2016 Yoshimi Logistics Special Purpose Tokyo-30 Yoshimi Hiki, Saitama 11,200 Company Subtotal 32,300 - Osaka-15 Fukaehama Kobe, Hyogo September 1, ,470 Fukaehama Logistics Special Purpose Company Other -20 Tomiya IV The purchase of the assets planned for acquisition is aimed at acquiring modern logistics facilities Seller Subtotal 4,470 - Kurokawa, Miyagi September 1, ,940 Azeria Two Special Purpose Company Subtotal 5,940 - Total 42,710 - by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 1

2 that are able to produce steady income pursuant to J-REIT s objective of implementing asset management with the aim of securing steady income over the medium- to long-term and steady growth of J-REIT s asset value. Through the purchase of the assets planned for acquisition, J-REIT aims to further reinforce its competitive first-class portfolio. A summary highlight of the four assets planned for acquisition are as follows: Atsugi II - A cutting-edge logistics facility equipped with a rampway and seismic isolator Large-scale six-story facility designed to ensure efficient and flexible operation by the tenants with a rampway and wide ample interior space where tenants can perform various operations with material handling equipment State-of-the-art features such as seismic isolator, back-up power and environmentally friendly features such as LED lighting and solar panels Ideally located to cover wide area in central and western Japan as well as whole Tokyo metropolitan area due to proximity to Tomei Expressway and Chuo Expressway Solid demand proven by pre-leasing nine months before the completion State-of-the-art logistics facility with CASBEE for New Construction Class A Certification, located at approximately 2.7km from Sagamihara-Aikawa IC of the Ken-o Expressway Yoshimi - Large-scale facility located to cover eastern Japan Large-scale four-story facility with two-side berths and pro-environmental facilities such as LED lighting and solar panels Covers whole Tokyo metropolitan area as well as northern region via the two expressways crossing near the facility Stable cash flow from a long-term lease with a major 3PL company State-of-the-art logistics facility with CASBEE-Saitama A Certification, located conveniently where broad coverage of the Tokyo metropolitan area via Higashi-Matsuyama IC of the Kan-etsu Expressway and Kawajima IC of the Ken-o Expressway Fukaehama - Well-designed facility for speedy and efficient operation Low rise facility equipped with three-side berths and wide eaves, ensuring speedy and efficient operation under any weather condition Great access to large consumption areas located only 20km away from central Osaka Expecting solid food-related demand due to location in the food industry complex Located approximately 0.3km from Fukaehama IC of Hanshin Expressway Bayshore Route Tomiya IV - Highly versatile facility with a long remaining lease Comprised of two buildings, one of which has been long occupied by a single tenant since its completion, and an annex facility developed by in 2014 due to the expansion of demand Located 1.5km from Izumi IC of Tohoku Expressway, enabling easy access both to Sendai city and to the entire northern Japan Stable cashflow from a long-term lease with a leading 3PL company Furthermore, J-REIT selects the lessee of the assets planned for acquisition based on the Tenant Selection Criteria (for details, please refer to Report on the Management Structure and System of the Issuer of Real Estate Trust Units and Related Parties dated May 27, 2016.) Additionally, Atsugi II and Yoshimi are each equipped with a solar power generation system, each of which is planned to be leased (variable rent) to its solar power provider, J-REIT Solar Godo Kaisha, once the acquisition process is completed. The rent will be linked to income earned by the lessee from its power sales business. However, the influence of the variable rent on the total rent revenue of the portfolio is expected to be minimal. For Fukaehama, part of the roof is leased for installation of solar power generation system facilities, but it is leased based on a typical lease contract (fixed rent). by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 2

3 3. Details of the assets planned for acquisition The following tables provide an overview of the properties in trust and the associated trust beneficiary rights, which are the assets planned for acquisition. Furthermore, explanations of the items described in the respective columns of the tables are as follows: (1) Scheduled acquisition date is the date stated in the trust beneficiary rights purchase and sales agreement of each asset planned for acquisition. (2) Type of specified asset indicates the type of the assets planned for acquisition at the time of acquisition. (3) Planned acquisition price indicates the sale price of the trust beneficiary rights (excluding tax) indicated in the trust beneficiary rights purchase and sales agreements relating to the respective assets planned for acquisition. (4) Location of Land indicates the residential address. For those properties that have no residential address, the building address on the registry is indicated. For those properties that have multiple addresses, one of the addresses on the registry is indicated. (5) Land area of Land is based on the description in the registry, and may not necessarily be identical with the actual state. (6) Zoning of Land indicates the type of zoning as shown in Article of the City Planning Act (Act No. 100 of 1968). (7) FAR of Land represents the ratio of the total floor area of buildings to the site area, as stipulated in Article 52 of the Building Standards Act (Act No. 201 of 1950), and indicates the upper limit of the floor area ratio as determined in city planning in accordance with zoning regulations. (8) BCR of Land represents the ratio of the building area of the buildings to the site area, as stipulated in Article 53 of the Building Standards Act, and indicates the upper limit of the building coverage ratio as determined in city planning in accordance with the zoning regulations. (9) Type of ownership of Land and Building indicates the type of rights owned by the trustee. (10) Date constructed of Building indicates, in principle, the registered date when the main building was completed. If the registry does not indicate the completion date for the main building, Date constructed of Building indicates the date when the inspection certification was issued. (11) Construction / No. of floors and Use of Building is based on the description of the main buildings on the registry. (12) Gross floor area of Building is based on the description on the registry, and does not include annex buildings. (13) Master lessee is the master lease company in cases where a master lease agreement is concluded for the assets planned for acquisition that is subleased to the end-tenant. (14) Pass-through master lease indicated in Type of master lease refers to master lease agreements that have no rent guarantee. (15) Property manager indicates the property management company scheduled to be retained by J-REIT. (16) Collateral indicates the collateral for which J-REIT is responsible. (17) Appraisal value indicates the appraisal value as of the end of June 2016 described in the respective real estate appraisal reports that were prepared by real estate appraisers retained by J-REIT. (18) Number of tenants of Details of tenants indicates the sum of the number of lease contracts for the buildings described in the respective lease contracts for each real estate. Furthermore, when master lease contracts are concluded for the real estate, the number of end tenants is indicated. (19) Annual contracted rent of Details of tenants indicates the amount obtained by multiplying by 12 the monthly rent (including common area charges) for the building described in the respective lease contracts of each real estate as of July 1, 2016 (or the sum amount for the real estate in trust for which multiple lease contracts are concluded) (excluding consumption tax), rounded down to the nearest million yen. (20) Leasehold and security deposits of Details of tenants indicates the sum of the balance of the Leasehold and security deposits for each real estate in trust of J-REIT, designated in the respective lease contracts of each trust beneficiary interest as of July 1, 2016, rounded down to the nearest million yen. by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 3

4 (21) Leased area of Details of tenants indicates the sum of the leased area of the buildings described in the respective lease contracts related to each asset planned for acquisition as of July 1, (22) Remarks indicates items believed to be important in consideration of their impact on the rights and duties, use and safety, as well as the appraisal value, profitability and possibility of disposal of each asset planned for acquisition, as of the date of this press release, and include the following items: Major restrictions or regulations under laws and other rules Major burdens or restrictions related to rights and duties Major matters concerning leases agreed with tenants or end tenants, or major status information, etc. regarding property use by tenants or end tenants Major matters when there are structures that cross the real estate borders or when there are problems in confirming the real estate borders. by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 4

5 (Tokyo-29) Atsugi II Property name Atsugi II Type of specified asset Beneficiary interest of real estate in trust Scheduled acquisition date September 1, 2016 Planned acquisition price 21,100 million yen Trust start date September 1, 2016 Trustee Mitsubishi UFJ Trust and Banking Corporation Trust expiration date September 30, 2026 Location (Not residential Sakura-dai, Nakatsuaza, Aikawa, Aiko, Kanagawa address) Land Land area 38, m 2 Zoning Exclusively industrial district FAR / BCR 200% / 60% (Note 1) Type of ownership Ownership Date constructed June 1, 2016 Construction / No. of floors Six-story steel-frame reinforced concrete building with alloy plating steel sheet roof Building Gross floor area 76, m 2 Use Warehouse Type of ownership Ownership Master lessee J-REIT Master Lease Godo Kaisha Type of master lease Pass-through master lease Property manager Global Logistic Properties Inc. Collateral None Appraisal value 21,200 million yen Appraiser Details of tenants Number of tenants 2 (Note 2) Major tenant Aeon Global SCM ; UDL Annual contracted rent Not Disclosed (Note 3)(Note 4) Leasehold and security deposits Not Disclosed (Note 3) Leased area 74, m 2 (Note 5) Leasable area 74, m 2 (Note 5) Occupancy rate 100.0% (Note 5) Remarks - (Note 1) The designated building coverage ratio for this asset is 60%, but set at 45% in principle in accordance with Kanagawa Inland Industrial Complex Construction Agreement. However, if this asset is to be subject to annexes or expansion of the main building in excess of 45%, the building coverage ratio for this asset can be relaxed to 50% by gaining approval of the Kanagawa Inland Industrial Complex Construction Agreement Steering Committee. (Note 2) Number of tenants does not include the tenant that leases solar power generation system. (Note 3) Unable to disclose, as consent has not been obtained from tenant. (Note 4) The lease contracts with a tenant for the solar power generation system are all linked to solar power sales. Furthermore, based on the appraisal NOI, annual net operating income through leases of solar power generation systems is approximately 2.2% of total annual net operating income (Note 5) Leased area, leasable area and occupancy rate do not include the leased area for solar power generation systems noted in notes 2 and 4 above. by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 5

6 Outline of appraisal Appraisal value 21,200 million yen Real estate appraiser Date of appraisal June 30, 2016 Income approach value Item Details Outline Direct capitalization approach Operating revenues Total potential revenue Loss such as vacancy Operating expenses Maintenance Utilities expenses Repairs Property Management fee Expenses for recruiting tenants 21,200 million yen 21,300 million yen Real estate taxes Casualty insurance premium Other expenses Net operating income Profit on the investment of a lump sum Capital expenditure Net cash flow 985 million yen 977 million yen Capitalization rate 4.6% DCF method Cost approach 21,200 million yen Discount rate (years 1-3) 4.3% Discount rate (years 4-10) 4.4% Discount rate (on and after year 11) 4.5% Terminal cap rate 4.6% 23,400 million yen Land percentage 56.1% Of which, net operating income related to solar panels is 21 million yen Assessed mainly based on capitalization rate of logistics facilities in precedent market transactions, supported by regional characteristics and uniqueness as well as stability of net operating income of the property Assessed by considering regional characteristics and uniqueness of the property Assessed by considering regional characteristics and uniqueness of the property Assessed by considering regional characteristics and uniqueness of the property Assessed based on capitalization rate adjusted by future uncertainty risks etc. Building percentage 43.9% (Note) J-REIT has not disclosed these items because the asset management company has judged the disclosure may cause disadvantage to investors. Points of attention in the determination of appraisal value In deciding on the appraisal value of this property, the appraiser used an income approach that appropriately reflects investors investment profitability as a standard, after verifying the value indicated by the cost approach. The appraiser chose this approach by taking into account the following factors; 1) the fact that the real estate investors tend to use the income approach for real estate valuation, 2) the reason for J-REIT as a real estate investor to obtain the appraisal of this property, and 3) the fact that the property is classified as a rental asset for investment. by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 6

7 (Tokyo-30) Yoshimi Property name Yoshimi Type of specified asset Beneficiary interest of real estate in trust Scheduled acquisition date September 1, 2016 Planned acquisition price 11,200 million yen Trust start date September 1, 2016 Trustee Mitsubishi UFJ Trust and Banking Corporation Trust expiration date September 30, 2026 Location (Not residential Nishi-Yoshimi, Yoshimi, Hiki, Saitama address) Land Land area 33, m 2 (Note 1) Zoning Industrial district FAR / BCR 200% / 60% Type of ownership Ownership Date constructed September 4, 2015 Construction / No. of floors Four-story steel-frame building with alloy plating steel sheet roof Building Gross floor area 61, m 2 Use Warehouse Type of ownership Ownership Master lessee J-REIT Master Lease Godo Kaisha Type of master lease Pass-through master lease Property manager Global Logistic Properties Inc. Collateral None Appraisal value 11,300 million yen Appraiser Details of tenants Number of tenants 1 (Note 2) Major tenant Japan Logistic Systems Corp. Annual contracted rent Not Disclosed (Note 3)(Note 4) Leasehold and security deposits Not Disclosed (Note 3) Leased area 62, m 2 (Note 5) Leasable area 62, m 2 (Note 5) Occupancy rate 100.0% (Note 5) Land for this asset is currently designated as a temporary substitution lot for Nishi-Yoshimi Southern District Organization Project of Higashi Matsuyama City Planning Project, and the rights related to the land, Remarks including ownership rights, will be determined the day after disposition announcement of the temporary substitution lot. Disposition announcement of the temporary substitution lot by the relevant land division organization project is expected to occur towards the end of October (Note 1) As the land for this asset is a temporary substitution lot, the total area on the certificate for the temporary substitution lot is indicated. (Note 2) Number of tenants does not include the tenant that leases solar power generation system. (Note 3) Unable to disclose, as consent has not been obtained from tenant. (Note 4) The lease contracts with a tenant for the solar power generation system are all linked to solar power sales. Furthermore, based on the appraisal NOI, annual net operating income through leases of solar power generation systems is approximately 5.4% of total annual net operating income (Note 5) Leased area, leasable area and occupancy rate do not include the leased area for solar power generation systems noted in notes 2 and 4 above. by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 7

8 Outline of appraisal Appraisal value 11,300 million yen Real estate appraiser Date of appraisal June 30, 2016 Income approach value Item Details Outline Direct capitalization approach Operating revenues Total potential revenue Loss such as vacancy Operating expenses Maintenance Utilities expenses Repairs Property Management fee Expenses for recruiting tenants 11,300 million yen 11,400 million yen Real estate taxes Casualty insurance premium Other expenses Net operating income Profit on the investment of a lump sum Capital expenditure Net cash flow 587 million yen 580 million yen Capitalization rate 5.1% DCF method Cost approach 11,200 million yen Discount rate (up to year 2) 4.9% Discount rate (year 3-9) 5.0% Discount rate (year 10) 5.1% Terminal cap rate 5.2% 11,800 million yen Land percentage 36.4% Of which, net operating income related to solar power generation facilities is 31 million yen Assessed mainly based on capitalization rate of logistics facilities in precedent market transactions, supported by regional characteristics and uniqueness as well as stability of net operating income of the property Assessed by considering regional characteristics and uniqueness of the property Assessed by considering regional characteristics and uniqueness of the property Assessed by considering regional characteristics and uniqueness of the property Assessed based on capitalization rate adjusted by future uncertainty risks etc. Building percentage 63.6% (Note) J-REIT has not disclosed these items because the asset management company has judged the disclosure may cause disadvantage to investors. Points of attention in the determination of appraisal value In deciding on the appraisal value of this property, the appraiser used an income approach that appropriately reflects investors investment profitability as a standard, after verifying the value indicated by the cost approach. The appraiser chose this approach by taking into account the following factors; 1) the fact that the real estate investors tend to use the income approach for real estate valuation, 2) the reason for J-REIT as a real estate investor to obtain the appraisal of this property, and 3) the fact that the property is classified as a rental asset for investment. by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 8

9 (Osaka-15) Fukaehama Property name Fukaehama Type of specified asset Beneficiary interest of real estate in trust Scheduled acquisition date September 1, 2016 Planned acquisition price 4,470 million yen Trust start date September 1, 2016 Trustee Mitsubishi UFJ Trust and Banking Corporation Trust expiration date September 30, 2026 Location (Not residential 34-1 Fukaehama, Higashinada, Kobe, Hyogo address) Land Land area 18, m 2 (Note 1) Zoning Industrial district FAR / BCR 200% / 70% Type of ownership Ownership Date constructed 28, 2007 Construction / No. of floors Two-story steel-frame building with alloy plating steel sheet roof Building Gross floor area 18, m 2 Use Warehouse Type of ownership Ownership Master lessee J-REIT Master Lease Godo Kaisha Type of master lease Pass-through master lease Property manager Global Logistic Properties Inc. Collateral None Appraisal value 4,510 million yen Appraiser Japan Real Details of tenants Number of tenants 1 (Note 2) Major tenant Sapporo Express Annual contracted rent Not disclosed (Note 3) Leasehold and security deposits Not disclosed (Note 3) Leased area 19, m 2 (Note 4) Leasable area 19, m 2 (Note 4) Occupancy rate 100.0% (Note 4) Remarks - (Note 1) Land for this asset includes 15, m 2 of jointly-owned area (current owner jointly owns approximately 7.5% of jointly-owned area). Area for this jointly-owned area is not included in the land area indicated above. (Note 2) Number of tenants does not include the tenant that leases part of the roof. Furthermore, the lease contract with the tenant is a typical lease contract (fixed rent) (Note 3) Unable to disclose, as consent has not been obtained from tenant. (Note 4) Leased area, leasable area and occupancy rate do not include the leased roof area noted in note 2 above. by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 9

10 Outline of appraisal Appraisal value 4,510 million yen Real estate appraiser Japan Real Date of appraisal June 30, 2016 Income approach value Item Details Outline Direct capitalization approach Operating revenues Total potential revenue Loss such as vacancy Operating expenses Maintenance Utilities expenses Repairs Property Management fee Expenses for recruiting tenants 4,510 million yen 4,580 million yen Real estate taxes Casualty insurance premium Other expenses Net operating income Profit on the investment of a lump sum Capital expenditure Net cash flow 233 million yen 224 million yen Capitalization rate 4.9% DCF method Cost approach 4,430 million yen Discount rate 4.6% Terminal cap rate 5.1% 3,190 million yen Land percentage 50.7% Assessed mainly based on capitalization rate of logistics facilities in precedent market transactions, supported by regional characteristics and uniqueness as well as stability of net operating income of the property Assessed by considering regional characteristics and uniqueness of the property Assessed based on capitalization rate adjusted by future uncertainty risks etc. Building percentage 49.3% (Note) J-REIT has not disclosed these items because the asset management company has judged the disclosure may cause disadvantage to investors. Points of attention in the determination of appraisal value In deciding on the appraisal value of this property, the appraiser used an income approach that appropriately reflects investors investment profitability as a standard, after verifying the value indicated by the cost approach. The appraiser chose this approach by taking into account the following factors; 1) the fact that the real estate investors tend to use the income approach for real estate valuation, 2) the reason for J-REIT as a real estate investor to obtain the appraisal of this property, and 3) the fact that the property is classified as a rental asset for investment. by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 10

11 (Other-20) Tomiya IV Property name Tomiya IV ((1) Main building, (2) Annex building) Type of specified asset Beneficiary interest of real estate in trust Scheduled acquisition date September 1, 2016 Planned acquisition price 5,940 million yen Trust start date September 29, 2014 Trustee Mitsubishi UFJ Trust and Banking Corporation Trust expiration date September 30, 2024 Location (1) Narita, Tomiya-machi, Kurokawa, Miyagi (Not residential address) (2) Narita, Tomiya-machi, Kurokawa, Miyagi Land Land area 24, m 2 Zoning Industrial district FAR / BCR 200% / 60% Type of ownership Ownership Date constructed (1) November 24, 1998 Building Construction / No. of floors Gross floor area Use (2) April 28, 2014 (1) Five-story steel-frame reinforced concrete building with galvanized steel sheet roof (2) Three-story steel-frame building with alloy plating steel sheet roof (1) 21, m 2 (2) 12, m 2 (1) Office/Warehouse (2) Warehouse Type of ownership Ownership Master lessee J-REIT Master Lease Godo Kaisha Type of master lease Pass-through master lease Property manager Global Logistic Properties Inc. Collateral None Appraisal value 5,990 million yen Appraiser Consulting, Inc. Details of tenants Number of tenants 1 Major tenant Nittsu Panasonic Logistics Annual contracted rent Leasehold and security deposits Leased area 32, m 2 Leasable area 32, m 2 Occupancy rate 100.0% Remarks - (Note) Unable to disclose, as consent has not been obtained from the tenant. by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 11

12 Outline of appraisal Appraisal value 5,990 million yen Real estate appraiser Consulting, Inc. Date of appraisal June 30, 2016 Income approach value Item Details Outline Direct capitalization approach Operating revenues Total potential revenue Loss such as vacancy Operating expenses Maintenance Utilities expenses Repairs Property Management fee Expenses for recruiting tenants 5,990 million yen 6,070 million yen Real estate taxes Casualty insurance premium Other expenses Net operating income Profit on the investment of a lump sum Capital expenditure Net cash flow 334 million yen 321 million yen Capitalization rate 5.3% DCF method Cost approach 5,900 million yen Discount rate 5.1% Terminal cap rate 5.5% 3,490 million yen Land percentage 43.6% Assessed mainly based on capitalization rate of logistics facilities in precedent market transactions, supported by regional characteristics and uniqueness as well as stability of net operating income of the property Assessed by considering regional characteristics and uniqueness of the property Assessed based on capitalization rate adjusted by future uncertainty risks etc. Building percentage 56.4% (Note) J-REIT has not disclosed these items because the asset management company has judged the disclosure may cause disadvantage to investors. Points of attention in the determination of appraisal value In deciding on the appraisal value of this property, the appraiser used an income approach that appropriately reflects investors investment profitability as a standard, after verifying the value indicated by the cost approach. The appraiser chose this approach by taking into account the following factors; 1) the fact that the real estate investors tend to use the income approach for real estate valuation, 2) the reason for J-REIT as a real estate investor to obtain the appraisal of this property, and 3) the fact that the property is classified as a rental asset for investment. by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 12

13 4. Seller profile (Tokyo-29) Atsugi II Trade name Head office address Representative s position title and name Capital Major shareholders Major business Atsugi Two Logistics Special Purpose Company Shiodome City Center, Higashi-Shimbashi, Minato-ku, Tokyo Kazuhiro Matsuzawa, Director 5,265.1 million yen Specific equity member: Atsugi Two Pte. Ltd. Preferred equity member: Atsugi Two Pte. Ltd., Japan Limited Partnership 1. Acceptance of specified assets, and management and disposal thereof 2. All other operations incidental and related to securitization of the said specified assets Relationship with either J-REIT or the asset management company Capital Relationship A group company of Global Logistics Properties Limited, a parent company of the asset management company, has invested in equity, and it is a Special Purpose Company for which Global Logistics Properties Inc., the asset management company s parent, engages in investment advisory duties Personal or Trade Relationships There are no personal or trade relationships between J-REIT or the asset management company and the Special Purpose Company that needs to be disclosed (Tokyo-30) Yoshimi Trade name Head office address Representative s position title and name Capital Major shareholders Major business Yoshimi Logistics Special Purpose Company Shiodome City Center, Higashi-Shimbashi, Minato-ku, Tokyo Takeshi Nakajima, Director 3,727.2 million yen Specific equity member: Yoshimi Pte. Ltd. Preferred equity member: Yoshimi Pte. Ltd., Neptune GK 1. Acceptance of specified assets, and management and disposal thereof 2. All other operations incidental and related to securitization of the said specified assets Relationship with either J-REIT or the asset management company Capital Relationship A group company of Global Logistics Properties Limited, a parent company of the asset management company, has invested in equity, and it is a Special Purpose Company for which Global Logistics Properties Inc., the asset management company s parent, engages in investment advisory duties Personal or Trade Relationships There are no personal or trade relationships between J-REIT or the asset management company and the Special Purpose Company that needs to be disclosed by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 13

14 (Osaka-15) Fukaehama Trade name Fukaehama Logistics Special Purpose Company Head office address Shiodome City Center, Higashi-Shimbashi, Minato-ku, Tokyo Representative s position title and name Kazuhiro Matsuzawa, Director Capital 2,668.8 million yen Specific equity member: Fukaehama Pte. Ltd. Major shareholders Preferred equity member: Fukaehama Pte. Ltd., Japan Limited Partnership Major business 1. Acceptance of specified assets, and management and disposal thereof 2. All other operations incidental and related to securitization of the said specified assets Relationship with either J-REIT or the asset management company A group company of Global Logistics Properties Limited, a parent company of the asset management company, has invested in equity, Capital Relationship and it is a Special Purpose Company for which Global Logistics Properties Inc., the asset management company s parent, engages in investment advisory duties Personal or Trade Relationships There are no personal or trade relationships between J-REIT or the asset management company and the Special Purpose Company that needs to be disclosed (Other-20) Tomiya IV Trade name Head office address Representative s position title and name Capital Major shareholders Major business Azeria Two Special Purpose Company Shiodome City Center, Higashi-Shimbashi, Minato-ku, Tokyo Kiyohiko Ide, Director 8,030.1 million yen Specific equity member: Azeria Two Pte. Ltd. Preferred equity member: Azeria Two Pte. Ltd., Japan Limited Partnership 1. Acceptance of specified assets, and management and disposal thereof 2. All other operations incidental and related to securitization of the said specified assets Relationship with either J-REIT or the asset management company A group company of Global Logistics Properties Limited, a parent company of the asset management company, has invested in equity, Capital Relationship and it is a Special Purpose Company for which Global Logistics Properties Inc., the asset management company s parent, engages in investment advisory duties Personal or Trade Relationships There are no personal or trade relationships between J-REIT or the asset management company and the Special Purpose Company that needs to be disclosed by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 14

15 5. Status of sellers, etc. Acquisition of properties from specially related parties are described below. The following table indicates (1) company name/name, (2) relationship with the specially related party, and (3) transaction history, reasons, etc. Property Name (Location) Atsugi II (Aiko, Kanagawa) Yoshimi (Hiki, Saitama) Previous Owner, Trust Beneficiary (1), (2), (3) Acquisition (transfer) price Timing of acquisition (transfer) (1) Atsugi Two Logistics Special Purpose Company (2) A Special Purpose Company that corresponds to a subsidiary of Global Logistics Properties Limited, the parent company of the asset management company (3) Acquired for the purpose of development (retention period: more than one year) Omitted as the holding period was longer than one year. April 2014 (Land) (1) Yoshimi Logistics Special Purpose Company (2) A Special Purpose Company that corresponds to a subsidiary of Global Logistics Properties Limited, the parent company of the asset management company (3) Acquired for the purpose of development (retention period: more than one year) Omitted as the holding period was longer than one year July 2014 (Land) Owner, Trust Beneficiary Prior to Previous One (1), (2), (3) Acquisition (transfer) price Timing of acquisition (transfer) Not a related party (land) Not a related party (land) Owner, Trust Beneficiary Prior to Previous Two (1), (2), (3) Acquisition (transfer) price Timing of acquisition (transfer) - - by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 15

16 Property Name (Location) Fukaehama (Kobe, Hyogo) Tomiya IV (Kurokawa, Miyagi) Previous Owner, Trust Beneficiary (1), (2), (3) Acquisition (transfer) price Timing of acquisition (transfer) (1) Fukaehama Logistics Special Purpose Company (2) A Special Purpose Company that corresponds to a subsidiary of Global Logistics Properties Limited, the parent company of the asset management company (3) Acquired for the purpose of investment management (retention period: more than one year) Omitted as the holding period was longer than one year. June 2007 (1) Azeria Two Special Purpose Company (2) A Special Purpose Company that corresponds to a subsidiary of Global Logistics Properties Limited, the parent company of the asset management company (3) Acquired for the purpose of investment management (retention period: more than one year) Omitted as the holding period was longer than one year September 2014 Owner, Trust Beneficiary Prior to Previous One (1), (2), (3) Acquisition (transfer) price Timing of acquisition (transfer) Owner, Trust Beneficiary Prior to Previous Two (1), (2), (3) Acquisition (transfer) price Timing of acquisition (transfer) Not a related party - (1) Azeria Special Purpose Company (2) A Special Purpose Company that corresponds to a subsidiary of Global Logistics Properties Limited, the parent company of the asset management company (3) Acquired for the purpose of investment management (retention period: more than one year) Omitted as the holding period was longer than one year June 2014 (Annex Building) September 2007 Not a related party by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 16

17 6. Transactions with interested parties, etc. The sellers of the assets planned for acquisition are the subsidiaries, etc. of Global Logistic Properties Limited, the parent company of the asset management company. These entities are interested parties under Article 201 of the Trust Act as well as Article 123 of the Enforcement Order of the Trust Act and correspond to interested parties under the regulations concerning transactions with interested parties, which are internal regulations of the asset management company. As such, the asset management company and these entities have completed procedures (including receipt of consent of J-REIT under Article of the Trust Act, based on the approval at the board meeting which was held on August 12, 2016) based on the regulations on transactions with interested parties for executing the transactions for each of the assets planned for acquisition. Furthermore, the property management company of the assets planned for acquisition will be Global Logistic Properties Inc., which is a major shareholder and parent company of the asset management company. This entity is an interested party under Article 201 of the Trust Act as well as Article 123 of the Enforcement Order of the Trust Act and corresponds to an interested party under the regulations concerning transactions with interested parties, which are internal regulations of the asset management company. As such, the asset management company has completed procedures for retention of this entity for property management works based on the regulations on transactions with interested parties for outsourcing the property management services of each asset planned for acquisition to this party. 7. Status of broker There is no broker with regard to these transactions. 8. Future outlook As to the outlook of the state of management and investment of J-REIT for the fiscal period ending 2017 (September 1, 2016 to 28, 2017) and the fiscal period ending August 2017 (March 1, 2017 to August 31, 2017), please refer to the announcement titled Announcement of Amendment of Forecast Concerning Operating Status and Distribution for the Fiscal Period Ending 28, 2017 and Forecast for the Fiscal Period Ending August 31, 2017, announced today. * J-REIT website address: <APPENDIX> Appendix 1 Summary of the Appraisal Reports Appendix 2 Summary of the Engineering Reports and the Portfolio Seismic Review Report Appendix 3 List of portfolio after acquisition of assets planned for acquisition Appendix 4 Photographs of external appearance and maps of assets planned for acquisition by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 17

18 <APPENDIX> Appendix 1 Summary of the Appraisal Reports Property number Existing assets Tokyo-1 Tokyo-2 Tokyo-3 Tokyo-4 Tokyo-5 Tokyo-6 Tokyo-7 Tokyo-8 Tokyo-9 Tokyo-10 Tokyo-11 Tokyo-12 Tokyo-13 Tokyo-14 Tokyo-15 Tokyo-16 Tokyo-17 Tokyo-18 Tokyo-19 Property name Tokyo Higashi-Ogishi ma Akishima Tomisato Narashino II Funabashi Kazo Fukaya Sugito II Iwatsuki Kasukabe Koshigaya II Misato II Tatsumi Hamura Funabashi III Sodegaura III IIa Urayasu Tatsumi Appraiser Date of valuation Appraisal value (million yen) (Note 1) Direct capitalization method Capitali Value zation (million yen) rate (%) Income approach Value (million yen) DCF method Discount rate (%) Terminal capitaliza tion rate (%) 27,300 27, , ,230 6, , ,640 8, , ,590 5, ,580 19,200 19, , y 4.9 / 3-10y y 4.6 / 6-10y 4.8 1,840 1, , ,500 14, ,300 2,770 2, , y 4.8 / 6-10y 5.0 1y 4.9 / 2-6y 5.0 / 7-10y ,500 22, , ,150 8, , ,950 5, , ,500 11, , ,500 17, , ,040 6, , ,850 8, , y 4.6 / 4-10y 4.7 3,870 3, , ,580 7, , ,200 20, , y 4.2 / 3-10y 4.3 7,740 7, , by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 18

19 Income approach Property number Tokyo-20 Tokyo-21 Tokyo-22 Tokyo-23 Tokyo-24 Tokyo-25 Tokyo-26 Tokyo-27 Osaka-1 Osaka-2 Osaka-3 Osaka-4 Osaka-5 Osaka-6 Osaka-7 Osaka-8 Osaka-9 Osaka-10 Osaka-11 Osaka-12 Osaka-13 Osaka-14 Other-1 Other-2 Other-3 Property name Tatsumi IIb Tokyo II Okegawa Shinkiba Narashino Narita II Sugito Matsudo Hirakata Hirakata II Maishima II Tsumori Rokko Amagasaki Amagasaki II Nara Sakai Rokko II Kadoma Seishin Fukusaki Kobe-Nishi Morioka Tomiya Koriyama I Appraiser Date of valuation Appraisal value (million yen) (Note 1) Direct capitalization method Capitali Value zation (million yen) rate (%) Value (million yen) DCF method Discount rate (%) Terminal capitaliza tion rate (%) 1,140 1, , ,800 39, , ,620 2, ,630 12,200 12, ,000 5,530 5, ,500 3,870 3, , y 4.9 / 4-10y y 4.1 / 3-7y 4.2 / 8-10y y 4.6 / 3-10y y 4.8 / 3-10y 5.0 9,240 9, , ,700 2, , ,090 6, , ,770 8, , ,700 10, , ,250 2, , ,710 5, , ,100 27, , ,240 2, , ,860 2, , ,200 2, , ,230 4, , y 5.1 / 6-10y 5.3 3,050 3, , ,610 1, , ,080 4, , ,590 7, , ,000 3, , ,480 4, , y 5.4 / 3-10y by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 19

20 Property number Other-4 Other-5 Other-6 Other-7 Other-8 Other-10 Other-11 Other-12 Other-13 Other-14 Other-15 Other-16 Other-17 Other-19 Property name Koriyama III Tokai Hayashima Hayashima II Kiyama Sendai Ebetsu Kuwana Hatsukaichi Komaki Ogimachi Hiroshima Fukuoka Tosu I Assets planned for acquisition Tokyo-28 Tokyo-29 Tokyo-30 Osaka-15 Other-20 -MFLP Ichikawa Shiohama (Note 2) Atsugi II Yoshimi Appraiser Fukaehama Tomiya IV Date of valuation March 31, 2016 June 30, 2016 June 30, 2016 June 30, 2016 June 30, 2016 Appraisal value (million yen) (Note 1) Direct capitalization method Capita Value lizatio (million yen) n rate (%) Income approach Value (million yen) 2,690 2, ,720 DCF method Discount rate (%) 1-5y 5.3 / 6-9y 5.4 / 10y 5.5 Terminal capitaliza tion rate (%) 7,340 7, , ,340 1, , ,670 2, , ,390 5, , ,240 6, ,180 1y 5.0 / 2-10y 5.2 2,000 2, , ,360 4, ,340 2,390 2, , y 5.5 / 7-10y y 5.5 / 8-10y ,900 12, , ,560 1, , ,020 4, , ,630 1, , ,840 9, , ,600 15, , ,200 21, ,200 11,300 11, , y 4.3 / 4-10y 4.4 / 11y y 4.9 / 3-9y 5.0 / 10y 5.1 4,510 4, , ,990 6, , Asset subject to OTA (Note 3) TBA Noda-Yoshihar u 5,030 5, , y 4.8 / 10y (Note 1) As for appraisal values of existing assets and asset subject to OTA, values that were appraised or investigated by a real estate appraiser as of the time of pricing at the end of 2016 are stated based on the asset valuation method and standards, which are provided in J-REIT regulations, and the regulations of the Trusts Association, Japan. As for -MFLP Ichikawa Shiohama of the assets planned for acquisition, appraisal value at the time of pricing at March 31, 2016 as stated in the appraisal reports is indicated. As for other assets planned for acquisition, their appraisal values at the time of pricing at June 30, 2016 as stated in the appraisal reports are indicated. (Note 2) Included within Assets planned for acquisition for the purposes of this table, as its scheduled acquisition date is September 1, 2016 as described in Notice Concerning Acquisition of Asset dated June 30, Appraisal and income approach values for by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 20

21 (Note 3) -MFLP Ichikawa Shiohama are based on the proportion of co-ownership interest (50%) of the trust beneficiary interest. Asset subject to OTA refers to the assets subject to the Optimal Takeout Arrangement (OTA) strategy as referred to by J-REIT for the purpose of securing future acquisition opportunities of assets. Please refer to the announcement titled Notice of Conclusion of Sales and Purchase Contract concerning Acquisition of Asset dated July 13, 2015 for details of the said arrangement. by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 21

22 <Appendix 2> Summary of the Engineering Reports and the Portfolio Seismic Review Report Property number Existing assets Tokyo-1 Tokyo-2 Property name Tokyo Higashi-Ogish ima Engineering firm Deloitte Tohmatsu Property Risk Solution Co., Ltd. Report date Emergency and short-term repair and maintenance costs (thousand (Notes 1, 2) yen) Medium- to long-term repair and maintenance costs (thousand (Notes 1, 3) Yen) (Note 4) PML (%) - 219, , Tokyo-3 Akishima - 168, Tokyo-4 Tomisato - 75, Tokyo-5 Narashino II - 1,292, Tokyo-6 Funabashi September 19, - 240, Tokyo-7 Kazo , Tokyo-8 Fukaya - 410, Tokyo-9 Sugito II - 365, Tokyo-10 Iwatsuki - 50, Tokyo-11 Tokyo-12 Kasukabe Koshigaya II - 170, , Tokyo-13 Misato II - 78, Tokyo-14 Tatsumi - 43, Tokyo-15 Tokyo-16 Tokyo-17 Tokyo-18 Tokyo-19 Tokyo-20 Tokyo-21 Tokyo-22 Tokyo-23 Tokyo-24 Hamura Funabashi III Sodegaura Urayasu III Tatsumi IIa Tatsumi IIb Tokyo II Okegawa Shinkiba Narashino August 20, 2013 March 20, 2014 July 25, 2014 July 27, , , , , , , , , , , Tokyo-25 Narita II Tokio Marine & - 149, July 27, 2015 Tokyo-26 Sugito Nichido Risk - 266, Consulting Co., Tokyo-27 Matsudo Ltd. December 14, - 142, Osaka-1 Hirakata Deloitte Hirakata Tohmatsu Osaka-2 II Property Risk Solution Co., Osaka-3 Ltd. Maishima II September 19, , , , by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 22

23 Property number Osaka-4 Property name Tsumori Engineering firm Report date September 19, 2012 Emergency and short-term repair and maintenance costs (thousand (Notes 1,2) yen) Medium- to long-term repair and maintenance costs (thousand (Notes 1,3) Yen) (Note 4) PML (%) - 142, Osaka-5 Rokko - 476, Osaka-6 Osaka-7 Amagasaki Amagasaki II - 307, , Osaka-8 Nara - 102, Osaka-9 Sakai - 42, Osaka-10 Osaka-11 Rokko II Kadoma August 20, , , Osaka-12 Seishin July 25, , Osaka-13 Fukusaki - 137, Osaka-14 Other-1 Kobe-Nishi Morioka January 28, , , Other-2 Tomiya Deloitte - 61, Other-3 Tohmatsu Koriyama I Property Risk - 28, Solution Co., Other-4-350, Koriyama III Ltd. September 19, Other-5 Tokai - 123, Other-6 Hayashima - 126, Other-7 Hayashima II - 33, Other-8 Kiyama - 95, Other-10 Sendai - 159, Other-11 Ebetsu - 47, Other-12 Kuwana August 20, - 51, Other-13 Hatsukaichi , Other-14 Komaki - 115, Other-15 Other-16 Ogimachi Hiroshima July 25, , , Other-17 Fukuoka - 134, Other-19 Tosu I Tokio Marine & Nichido Risk Consulting Co., Ltd. July 27, , by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 23

24 Property number Property name Assets planned for acquisition Engineering firm Report date Emergency and short-term repair and maintenance costs (thousand (Notes 1,2) yen) Medium- to long-term repair and maintenance costs (thousand (Notes 1,3) Yen) (Note 4) PML (%) Tokyo-28 -MFLP Ichikawa Shiohama April 12, , (Note 5) Tokyo-29 Atsugi II Tokio Marine & Nichido Risk August 3, , Tokyo-30 Yoshimi Consulting Co., Ltd. August 3, , Osaka-15 Fukaehama August 3, , Other-20 Tomiya IV August 3, , Portfolio PML (Note 4) 2.2 Asset subject to OTA TBA Noda-Yoshiha ru Deloitte Tohmatsu Property Risk Solution Co., Ltd. July 1, , (Note 1) Emergency and short-term repair and maintenance costs and medium- to long-term repair and maintenance costs are as set forth in the Engineering Report of each property. (Note 2) Emergency and short-term repair and maintenance costs are the repair and maintenance costs that are expected to be required within 1 year from the date of the report. (Note 3) Medium- to long-term repair and maintenance costs are the repair and maintenance costs that are expected to be required within 12 years from the date of the report. (Note 4) PML of each property and the portfolio PML are based on the Portfolio Seismic Review Report dated August 3, 2016, and are rounded to the first decimal place. (Note 5) Included within Assets planned for acquisition for the purposes of this table, as its scheduled acquisition date is September 1, 2016 as described in Notice Concerning Acquisition of Asset dated June 30, Emergency and short-term repair and maintenance costs and medium- to long-term repair and maintenance costs indicates the value after multiplying the proportion of co-ownership (50%) of the trust beneficiary interest. by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 24

25 <Appendix 3> List of portfolio after acquisition of assets planned for acquisition Region Property number Property name Existing assets Acquisition price (planned) (million yen) (Note 1) Share (%) (Note 2) Appraisal value (million yen) (Note 3) (Scheduled) Date of acquisition Tokyo Tokyo-1 Tokyo 22, ,300 January 4, 2013 Tokyo Tokyo-2 Higashi-Ogishima 4, ,230 January 4, 2013 Tokyo Tokyo-3 Akishima 7, ,640 January 4, 2013 Tokyo Tokyo-4 Tomisato 4, ,590 January 4, 2013 Tokyo Tokyo-5 Narashino II 15, ,200 January 4, 2013 Tokyo Tokyo-6 Funabashi 1, ,840 January 4, 2013 Tokyo Tokyo-7 Kazo 11, ,500 January 4, 2013 Tokyo Tokyo-8 Fukaya 2, ,770 January 4, 2013 Tokyo Tokyo-9 Sugito II 19, ,500 January 4, 2013 Tokyo Tokyo-10 Iwatsuki 6, ,150 January 4, 2013 Tokyo Tokyo-11 Kasukabe 4, ,950 January 4, 2013 Tokyo Tokyo-12 Koshigaya II 9, ,500 January 4, 2013 Tokyo Tokyo-13 Misato II 14, ,500 January 4, 2013 Tokyo Tokyo-14 Tatsumi 4, ,040 1, 2013 Tokyo Tokyo-15 Hamura 7, ,850 October 1, 2013 Tokyo Tokyo-16 Funabashi III 3, ,870 October 1, 2013 Tokyo Tokyo-17 Sodegaura 6, ,580 October 1, 2013 Tokyo Tokyo-18 Urayasu III 18, ,200 March 3, 2014 Tokyo Tokyo-19 Tatsumi IIa 6, ,740 April 1, 2014 Tokyo Tokyo-20 Tatsumi IIb 1, ,140 April 1, 2014 Tokyo Tokyo-21 Tokyo II 36, ,800 September 2, 2014 Tokyo Tokyo-22 Okegawa 2, ,620 September 2, 2014 Tokyo Tokyo-23 Shinkiba 11, ,200 September 1, 2015 Tokyo Tokyo-24 Narashino 5, ,530 September 1, 2015 Tokyo Tokyo-25 Narita II 3, ,870 September 1, 2015 Tokyo Tokyo-26 Sugito 8, ,240 September 1, 2015 Tokyo Tokyo-27 Matsudo 2, ,700 January 15, 2016 Osaka Osaka-1 Hirakata 4, ,090 January 4, 2013 Osaka Osaka-2 Hirakata II 7, ,770 January 4, 2013 Osaka Osaka-3 Maishima II 8, ,700 January 4, 2013 Osaka Osaka-4 Tsumori 1, ,250 January 4, 2013 Osaka Osaka-5 Rokko 5, ,710 January 4, 2013 Osaka Osaka-6 Amagasaki 24, ,100 January 4, 2013 Osaka Osaka-7 Amagasaki II 2, ,240 January 4, 2013 Osaka Osaka-8 Nara 2, ,860 January 4, 2013 Osaka Osaka-9 Sakai 2, ,200 1, 2013 Osaka Osaka-10 Rokko II 3, ,230 October 1, 2013 Osaka Osaka-11 Kadoma 2, ,050 September 2, 2014 Osaka Osaka-12 Seishin 1, ,610 September 2, 2014 Osaka Osaka-13 Fukusaki 3, ,080 September 2, 2014 Osaka Osaka-14 Kobe-Nishi 7, ,590 May 1, 2015 by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 25

26 Region Property number Property name Acquisition price (planned) (million yen) (Note 1) Share (%) (Note 2) Appraisal value (million yen) (Note 3) (Scheduled) Date of acquisition Other Other-1 Morioka January 4, 2013 Other Other-2 Tomiya 2, ,000 January 4, 2013 Other Other-3 Koriyama I 4, ,480 January 4, 2013 Other Other-4 Koriyama III 2, ,690 January 4, 2013 Other Other-5 Tokai 6, ,340 January 4, 2013 Other Other-6 Hayashima 1, ,340 January 4, 2013 Other Other-7 Hayashima II 2, ,670 January 4, 2013 Other Other-8 Kiyama 4, ,390 January 4, 2013 Other Other-10 Sendai 5, ,240 1, 2013 Other Other-11 Ebetsu 1, ,000 October 1, 2013 Other Other-12 Kuwana 3, ,360 October 1, 2013 Other Other-13 Hatsukaichi 1, ,390 October 1, 2013 Other Other-14 Komaki 10, ,900 March 3, 2014 Other Other-15 Ogimachi 1, ,560 September 2, 2014 Other Other-16 Hiroshima 3, ,020 September 2, 2014 Other Other-17 Fukuoka 1, ,630 September 2, 2014 Other Other-19 Tosu I 9, ,840 September 1, 2015 Subtotal 384, ,252 - Assets planned for acquisition Tokyo Tokyo-28 -MFLP Ichikawa Shiohama (Note 4) 15, ,600 September 1, 2016 Tokyo Tokyo-29 Atsugi II 21, ,200 September 1, 2016 Tokyo Tokyo-30 Yoshimi 11, ,300 September 1, 2016 Osaka Osaka-15 Fukaehama 4, ,510 September 1, 2016 Other Other-20 Tomiya IV 5, ,990 September 1, 2016 Subtotal 58, ,600 - Total 442, ,852 - Asset subject to OTA Tokyo - Noda-Yoshiharu (Note 5) - 5,030 From July 14, 2016 through July 13, 2020 (Note 5) (Note 1) The (planned) acquisition price is the trading value for each real estate or trust beneficiary right included in sales agreements (excludes acquisition-related expenses and consumption tax, etc.). (Note 2) Share is the ratio of the (planned) acquisition price of each real estate or real estate in trust to the total price and is rounded to the first decimal place. (Note 3) As for appraisal values of existing assets and assets subject to OTA, values that were appraised or investigated by a real estate appraiser as of the time of pricing at the end of 2016 are stated based on the asset valuation method and standards, which are provided in J-REIT regulations, and the regulations of the Trusts Association, Japan. As for -MFLP Ichikawa Shiohama of the assets planned for acquisition, appraisal value at the time of pricing at March 31, 2016 as stated in the appraisal reports is indicated. As for other assets planned for acquisition, their appraisal values at the time of pricing at June 30, 2016 as stated in the appraisal reports are indicated. (Note 4) Included within Assets planned for acquisition for the purposes of this table, as its scheduled acquisition date is September 1, 2016 as described in Notice Concerning Acquisition of Asset dated June 30, Indicates the appraisal value for -MFLP Ichikawa Shiohama based on the proportion of co-ownership (50%) of the trust beneficiary interest. (Note 5) The planned acquisition price for the asset subject to OTA is an amount between 4,170 million yen and 4,650 million yen that is obtained by adjusting the price that gradually diminishes in proportion to the seller s holding period that was agreed to beforehand between J-REIT and MUL Property (Central Compass changed its trade name to MUL Property as of 1, 2016), the seller, by the sum total of the difference between the budget of repair costs and capital expenditure, etc. that were agreed on beforehand and the actual figure for the period between the date the sales contract was concluded and the execution date of the acquisition. The planned acquisition date is July 13, 2020 or on a date between July 14, 2016 and July 13, 2020 that J-REIT designates no later than 15 business days prior. by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 26

27 <Appendix 4> Photographs of external appearance and maps of assets planned for acquisition Atsugi II by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 27

28 Yoshimi by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 28

29 Fukaehama by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 29

30 Tomiya IV by J-REIT, and has not been prepared for the purpose of solicitation for investment. Investors are asked to ensure that they read the prospectus for the issuance of new investment units, as well as the amendments thereto (if compiled), prepare d by J-REIT before they 30