All of us at Mori Hills REIT Investment Corporation ("MHR") wish to extend our deep appreciation to our unitholders for your continuous support of MHR. I am pleased to report on MHR’s performance for the thirty-ninth fiscal period which ended January 31, 2026.

In the thirty-ninth fiscal period, the Japanese economy continued to be affected by price hikes, with some weakness in consumer spending, and exports slowed due to the impact of US trade policy, resulting in a stall in improvement.

In such an economic environment, the rental office market experienced a consistent decline in vacancy rates and a gradual rise in rents, due to ongoing relocation demands for purposes that include businesses expanding operations, improving locations, and upgrading office-grades. As for the luxury rental housing market, although supply has increased due to large-scale redevelopments in central Tokyo, occupancy rates and rent levels remained solid, driven by ongoing stable demand for quality housing. In terms of the real estate trading market, the transaction amount remained at a high level despite interest rates recently trending upward, thanks to sustained investment appetite from domestic and foreign investors, persistently high transaction prices, and the boost provided by major transactions from foreign-affiliated corporations.

In the thirty-ninth fiscal period, MHR strove to maintain and enhance tenant satisfaction through measures such as efficient and systematic operational management and maintenance and repair of properties in its portfolio by better understanding tenant needs. Moreover, MHR maintained and enhanced occupancy rates and rents by proactively launching leasing activities targeting new and existing tenants while foreseeing trends in rental market conditions.

MHR’s real estate portfolio, as of the end of the ninth-eighth fiscal period, was comprised of 11 properties under management with a total leasable area of 185,381.73m2. MHR has already invested 416,049 million yen (based on the acquisition price) into this portfolio. The occupancy rate at the end of the thirty-eighth fiscal period was 98.9%.

The asset management activities described above resulted in MHR recording in the thirty-ninth fiscal period 11,381 million yen in operating revenue, 6,882 million yen in operating income, 6,125 million yen in ordinary income and 6,124 million yen in net income and 3,100 yen in dividend per unit. MHR acquired additional Toranomon Hills Mori Tower (acquisition price: 9,669 million yen) and to transfer a part of Laforet Harajuku (Land) (disposition price: 3,073 million yen) on December 1, 2025, 281 million yen of the 1,519 million yen gain on disposition was recorded as reserve for reduction entry.

In addition, MHR plans to dispose of a further part of Laforet Harajuku (Land)
(disposition price: 2,365 million yen) on July 1, 2026. For the fortieth fiscal period ending July 31, 2026, dividends per unit is expected to be 3,100 yen.

MHR will continue to seek maximization of unitholder value by maintaining and increasing dividends continuously while retaining stability of earnings through fixed-rent master leases alongside actively pursuing external growth utilizing the property pipeline of the Mori Building Group.

I would like to ask for your continued support.