Global One Real Estate Investment Corp.

Transcription

1 Global One Real Estate Investment Corp. (Code: 8958) Explanatory Material Financial Results for the Six Month Ended September 2012 (the 18 th ) As of 15 November 2012

2 Table of Contents Section 1: Financial results for the six month period ended September 2012 (the 18 th ) Financial highlights 3 Financial statements etc. 5 Section 2: Portfolio management and strategies Portfolio management and matters to report for the 18 th 16 Portfolio strategies 26 Section 3: Financial strategies and forecasts for the 19 th Financial management 28 Forecasts for the 19 th 33 Section 4: Reference data 34 Note: the 18 th = The six month period that ended September 2012 the 19 th = The six month period ending March

3 Section 1 Financial Results for the Six Month Ended September 2012 (the 18 th ) 2

4 Financial Highlights(1) B/S 16 th Ended Sept th Ended Mar th Ended Sept 2012 Changes from previous six month period Total assets million yen 152, , , % Total liabilities (Interest bearing liabilities) million yen million yen 76,629 (69,200) 76,591 (69,200) 76,595 (69,200) Total unitholders equity million yen 76,108 76,373 76, % Number of units issued unit 96,900 96,900 96,900 Unitholders equity per unit yen 785, , , % P/L Operating revenue million yen 4,087 4,331 4, % Operating profit million yen 1,606 1,874 1, % 4 ( ) 0.0 % ( ) Matters to report 16 th No purchases, sales, or no financing activities 17 th No purchases, sales, or no financing activities Increased revenue due largely to the expirations of several rent free periods 18 th No purchases, sales, or no financing activities Decreased revenue due primarily to an increase in the amount we offer as rentfree concessions Ordinary profit million yen 1,084 1,348 1, % Net income million yen 1,082 1,347 1, % Dividend Total Dividends million yen 1,082 1,347 1, % Dividend per unit yen 11,167 13,902 13, % Number of operating days Number of properties days property The breakdown of Interest bearing liabilities of 69,200 million yen: Long term loans 44,200 million yen (*) Numbers less than the indicated units/digits are rounded down. Percentages of Changes from previous six month period are rounded off to the first decimal place. Corporate bonds 25,000 million yen 3

5 Financial Highlights(2) Actual vs. Forecasts for the 18 th (ended September 2012) Main reasons for variance b/w (A) and (B) Account Title Operating revenue Operating profit Ordinary profit million yen million yen million yen Actual (A) Forecasts (B) (*1) 4,288 4,251 1,798 1,696 1,273 1,163 Variance (A) (B) 37 (0.9 %) 102 (6.0 %) 110 (9.5 %) Operating revenue 1) Rents w/common area charges: + 16 million yen from forecast 2) Utility charges: + 14 million yen from forecast Operating expenses 1) Property and other taxes: 22 million yen from forecast 2) Repairs and maintenance: 20 million yen from forecast Net income million yen 1,273 1, (9.5 %) Number of units issued unit 96,900 96,900 Net income per unit (*2) yen 13,137 12,000 Dividend per unit yen 13,138 12,000 1,137 (9.5 %) 1,138 (9.5 %) <Ref.> Dividend per unit for the 18 th (forecasts, revised forecasts and actual) Dates Forecasts made on 17 May 2012 Forecasts revised on 29 August 2012 Dividend Variance from actual dividend 12,000 yen 1,138 yen 12,800 yen 338 yen Actual dividend 13,138 yen (*1) Forecasts (B) are the numbers as of 17 May 2012 at the time of the announcement of the financial results for the 17 th. Please see the right chart for historical dividend forecast revisions. (*2) Net income per unit is calculated by dividing net income by the number of units issued. 4

6 Balance Sheets (1) Assets (2) Liabilities and Unitholders equity 17th 1 (As of 31 March 2012) 18th 2 (As of 30 September 2012) Variance th 1 (As of 31 March 2012) 18th 2 (As of 30 September 2012) (Unit: thousand yen) Variance 2 1 Amount Percentage distributio n (%) (*1) Amount Percentage distribution (%) (*1) Amount Percentage variance (%) (*2) Amount Percentage distributio n (%) (*1) Amount Percentage distributio n (%) (*1) Amount Percentage variance (%) (*2) 1 Assets 1 Liabilitie s 2 3 Current Assets Cash and bank deposits 2,398,657 2,593, , Current Liabilitie s Accounts payable 178, ,665 19,714 4 Cash in trust accounts and bank deposits in 4 Unsecured corporate bonds due within one year 10,000,000 20,000,000 10,000,000 9,095,622 9,393, ,749 trust accounts (*3) 5 Long term loans due within one year 4,200,000 4,200,000 5 Tenant rece ivable s 94, ,381 15,276 6 Other accounts payable Prepaid expenses 121, ,932 63,282 7 Accrued expenses (*4) 147, ,989 (733) 7 Deferred tax assets (2) 8 Accrued income taxes (164) 8 Deposits paid 20,350 20,350 9 Accrued consumption taxes 58,472 44,663 (13,808) 9 Accrued income Rents received in advance 475, ,268 62, Advances paid Deposits received Total current assets 11,710, ,302, , Cash distributions payable 7,759 6,847 (911) 12 Non current Assets 13 Total current liabilities 15,069, ,135, ,066, Fixed assets 14 Non current Liabilities 14 Buildings in trust accounts, net 44,600,107 44,019,681 (580,425) 15 Unsecured corporate bonds 15,000,000 5,000,000 (10,000,000) 15 Structures in trust accounts, net 302, ,206 (10,765) 16 Long term loans 40,000,000 40,000,000 Machinery and equipment in trust , ,580 (22,722) 17 Tenant security de posits in trust accounts 6,522,321 6,549,742 (62,579) accounts, net 18 Total non current liabilities 61,522, ,459, (10,062,579) (16.4) Tools, furniture and fixture s in trust 17 accounts, net 54,666 49,829 (4,836) 19 Total Liabilities 76,591, ,595, , Land in trust accounts 95,686,617 95,686, Unitholdersʹ Equity 19 Total fixed assets, net 140,957, ,338, (618,750) (0.4) 21 Unitholde rsʹ capital 75,026,315 75,026, Intangible assets Leasehold rights in trust accounts 118, , Surplus Retained earnings 1,347,162 1,273,108 (74,054) 22 Other intangible assets in trust accounts 4,689 4,351 (337) 24 Total surplus 1,347,162 1,273,108 (74,054) (5.5) 23 Other intangible assets 1,483 1,171 (312) 25 Total Unitholde rsʹ Equity 76,373, ,299, (74,054) (0.1) 24 Total intangible assets 124, , (650) (0.5) 26 Total Liabilitie s and Unitholdersʹ Equity 152,964, ,895, (69,889) (0.0) 25 Investments and other assets 26 Long term prepaid expenses 113,469 82,080 (31,388) (*1) Percentages of less than the first decimal place are rounded down. 27 Long term prepaid consumption tax (29) 28 Guaranty money deposited 10,000 10,000 (*2) Percentages of less than the first decimal place are rounded off. 29 Total investme nts and other assets 123, , (31,418) (25.4) (*3) Bank deposits in trust accounts corresponding to tenant security deposits in trust accounts are: 30 Total non current assets 141,205, ,554, (650,818) (0.5) 17 th : 4,883,809 thousand yen, 18 th : 4,819,837 thousand yen 31 Deferred assets 32 Corporate bond issuance costs 48,777 38,208 (10,569) (*4) Unpaid interest on corporate bonds are: 33 Total deferred assets 48, , (10,569) (21.7) 17 th : 67,849 thousand yen, 18 th : 67,351 thousand yen, 34 Total Assets 152,964, ,895, (69,889) (0.0) 5

7 Income Statements Amount 17th 1 Percentage distribution (%) (*1) 18th 2 (From 01 October 2011 to 31 March 2012) (From 01 April 2012 to 30 September 2012) Percentage distribution (%) (*1) (Unit: thousand yen) Percentage variance (%) (*2) 1Operating Revenue 4,331, ,288, (42,263) (1.0) 2 Rental revenues 4,329,911 4,263,895 (66,016) 3 Non rental revenues 1,125 24,878 23,753 4Operating Expenses 2,456, ,490, , Property related expenses(*3) 2,053,332 2,093,556 40,224 6 Asse t management fees 300, ,499 (3,559) 7 Directorsʹ remuneration 10,638 10,638 8 Asse t custody fees 19,664 19,661 (3) 9 Agent fees 42,482 41,066 (1,416) 10 Audit fees 10,000 10, Other operating expenses 20,326 18,747 (1,578) 12 Operating Profit 1,874, ,798, (75,929) (4.1) 13 Non operating Revenues 2, , , Interest revenues 1,876 2, Reversal of cash distributions payable 791 1, Non operating Expenses 529, , (777) (0.1) 17 Interest expense 312, , Interest expense of corporate bonds 169, ,251 (999) 19 Amortization of corporate bond issuance costs 10,569 10, Loan arrangement fees 5,540 5, Other non operating expenses 31,435 31, Ordinary Profit 1,348, ,273, (74,099) (5.5) 23 Income before Income Taxes 1,348, ,273, (74,099) (5.5) 24 Income taxes current 1, (74) 25 Income taxes deferred (18) Total income taxes (53) (5.4) 27 Net Income 1,347, ,273, (74,046) (5.5) 28 Retained Earnings at beginning of period (7) 29 Retained Earnings at end of period 1,347,162 1,273,108 (74,054) (*1) Percentages of less than the first decimal place are rounded down. (*2) Percentages of less than the first decimal place are rounded off. (*3) Depreciation and amortization costs are: 17 th : 765,960 thousand yen, 18 th : 742,267 thousand yen. Amount Variance 2 1 Amount 6

8 Details of Property related Profits and Losses (Unit: thousand yen) 17th 1 18th 2 Variance 2 1 (From 01 October 2011 to 31 March 2012) (From 01 April 2012 to 30 Se pte mbe r 2012) Amount Amount Amount Percentage variance (%) (*) 1Total Property related Revenues 4,331,036 4,288,773 (42,263) (1.0) 2 Rental Revenues 4,329,911 4,263,895 (66,016) 3 Rental revenues 3,263,314 3,156,080 (107,233) 4 Common area charges 628, ,563 4,484 5 Utility charges 337, ,884 33,710 6 Parking revenues 82,082 83,483 1,400 7 Other rental revenues 19,262 20,883 1,621 8 Non rental Revenues 1,125 24,878 23,753 9Total Property related Expenses 2,053,332 2,093,556 40, Property related Expenses 2,053,332 2,093,556 40, Property management fees 428, ,710 11, Utilities expenses 330, ,905 45, Property and other taxes 419, ,706 23, Casualty insurance 6,688 6,607 (80) 15 Repairs and maintenance 83,143 68,907 (14,235) 16 Depreciation and amortization 765, ,267 (23,692) 17 Other rental expenses 18,907 16,451 (2,455) 18 Property related Profits and Losses 2,277,704 2,195,217 (82,487) (3.6) (*)Percentages of less than the first decimal place are rounded off. 7

9 Cash Distribution Statement and Actual Dividends Cash Distribution Statement Actual Dividends Title 17th Ended Mar th Ended Sept 2012 Accounting period Dividend per unit (*1) Payout ratio (*2) Retained Earnings at end of period 1 1,347,162 thousand yen 1,273,108 thousand yen Total Dividends 2 1,347,103 thousand yen 1,273,072 thousand yen Retained Earnings Carried Forward 3 = thousand yen 35 thousand yen Number of units issued 4 96,900 units 96,900 units Dividend per unit 5 = 2 / 4 13,902 yen 13,138 yen <Ref.> Variance between Initial forecasts and actual results Accounting DPU Initial forecasts DPU Actual Variance (*1) Percentages of less than the first decimal place are rounded off. (*2) During the 15th, GOR acquired Hirakawacho Mori Tower (01 March 2011). Percentages (*1) 10 th Ended Sept ,000 21,981 1, % 11 th Ended Mar ,500 20,918 1, % 12 th Ended Sept ,000 20,536 1, % 13 th Ended Mar ,700 20,875 2, % 14 th Ended Sept ,500 14, % 15 th Ended Mar 2011(*2) 10,300 11,791 1, % 16 th Ended Sept ,300 11, % 17 th Ended Mar ,000 13, % 18 th Ended Sept ,000 13,138 1, % Average 15,144 16,494 1, % 1 st Ended Mar 2004 (*3) 18,124 yen 99.9 % 2 nd Ended Sept ,759 yen 99.9 % 3 rd Ended Mar ,693 yen 99.9 % 4 th Ended Sept ,170 yen % 5 th Ended Mar ,180 yen 99.9 % 6 th Ended Sept ,613 yen % 7 th Ended Mar ,163 yen 99.9 % 8 th Ended Sept ,612 yen 99.9 % 9 th Ended Mar ,347 yen % 10 th Ended Sept ,981 yen 99.9 % 11 th Ended Mar ,918 yen % 12 th Ended Sept ,536 yen 99.9 % 13 th Ended Mar ,875 yen % 14 th Ended Sept ,142 yen % 15 th Ended Mar ,791 yen 99.9 % 16 th Ended Sept ,167 yen 99.9 % 17 th Ended Mar ,902 yen % 18 th Ended Sept ,138 yen % Total 359,111 yen - (*1) Figures are on a pre tax basis. Dividends in excess of profit per unit are not assumed. (*2) Percentages of less than the first decimal place are rounded down. (*3) While calculation of the 1 st starts on 16 April 2003 and ends on 31 March 2004, the actual operating period started on 26 September 2003 (purchased properties on this date) and ended on 31 March 2004, which totals 188 days, or 6 months and 5 days. 8

10 Cash Flow Statements (Unit: thousand yen) 17th 18th (From 01 October 2011 to 31 March 2012) (From 01 April 2012 to 31 September 2012) Cash Flows from Operating Activities: Income before income taxes 1,348,090 1,273,990 Depreciation and amortization 765, ,267 Others, net (70,205) 16,541 Net cash provided by operating activities 2,043,845 2,032,799 Cash Flows from Investing Activities: Purchases of fixed assets in trust accounts (69,611) (129,937) Proceeds from tenant security deposits in trust accounts 176, ,573 Payments for tenant security deposits in trust accounts (88,345) (164,545) Proceeds from bank deposits in trust accounts corresponding to tenant security deposits in trust accounts 88, ,545 Payments for bank deposits in trust accounts corresponding to tenant security deposits in trust accounts (176,091) (100,573) Net cash used in investing activities (69,611) (129,937) Cash Flows from Financing Activities: Dividends paid (1,082,256) (1,346,415) Net cash used in financing activities (1,082,256) (1,346,415) Net increase in cash and cash equivalents 891, ,446 Cash and cash equivalents at beginning of period 5,718,491 6,610,469 Cash and cash equivalents at end of period 6,610,469 7,166,916 No major CF activities during this period Cash and cash equivalents as of 30 September 2012 and 31 March 2012 are consisted of the following: Cash and bank deposits Cash and bank deposits in trust accounts Bank deposits in trust accounts corresponding to tenant security deposits in trust accounts (*) Cash and cash equivalents (Unit: thousand yen) 17th 18th (As of 31 Mar 2012) (As of 30 Sept 2012) Variance 2,398,657 2,593, ,725 9,095,622 9,393, ,749 (4,883,809) (4,819,837) 63,972 6,610,469 7,166, ,446 (*) Bank deposits in trust accounts corresponding to tenant security deposits in trust accounts are retained for repayment of tenant security deposits. 9

11 Financial Indicators Title Calculations (*1) 1 Ordinary profit to total assets % B {(D+E) 2} (Annualized) % (1.9) (1.5) (1.4) (1.7) (1.6) 3 Net income to unitholders equity ratio % C {(F+G) 2} (Annualized) % (3.5) (3.0) (2.8) (3.5) (3.3) 5 Term end unitholders equity to total assets ratio % G E Term end liabilities to total assets ratio % (H+I) E NOI (Net operating income) million yen A+J 2,821 2,698 2,768 3,043 2,937 8 FFO (Funds from operation) million yen C+J 2,091 1,882 1,859 2,113 2,015 9 FFO per unit yen 8 K 21,585 19,430 19,185 21,806 20,797 14th 15th 16th 17th 18th (*1) Reference 14th 15th A J: million yen K: # of units <Reference>LTV reflecting term end portfolio appraisals 1 to 7: million yen 8: % 16th 17th 18th Title A Property related profits and losses 2,100 1,958 1,991 2,277 2,195 B Ordinary profit 1,371 1,143 1,084 1,348 1,273 C Net income 1,370 1,142 1,082 1,347 1,273 D Total assets at beginning of period 136, , , , ,964 E Total assets at end of period 149, , , , ,895 F Unitholders equity at beginning of period 77,049 76,396 76,168 76,108 76,373 G Unitholders equity at end of period 76,396 76,168 76,108 76,373 76,299 H Interest bearing liabilities at end of period 65,700 69,200 69,200 69,200 69,200 I Effective use of tenant security deposits 1,638 1,638 1,638 1,638 1,638 J Depreciation and amortization K Number of units issued 96,900 96,900 96,900 96,900 96,900 14th 15th (*2) Numbers less than the indicated units/digits are rounded down. 16th 17th 18th Title 1 Appraisal value at end of period 134, , , , ,585 2 Book value at end of period 124, , , , ,461 3 (1-2) 10,161 7,519 9,585 8,970 9,123 4 Total assets at end of period 149, , , , ,895 5 (3+4) 159, , , , ,018 6 Interest bearing liabilities at end of period 65,700 69,200 69,200 69,200 69,200 7 Effective use of tenant security deposits 1,638 1,638 1,638 1,638 1,638 8 LTV ((6+7)/5)

12 Performance Compared to Other Indices (25 Sept Oct 2012) 400% 350% 300% TSE REIT Index TSE Real Estate Industry Index GOR Issuance of additional units (Paid 20 Apr 2007) Issue price at the time of second issuance of additional units (20 Apr 2007) :1,479,800 yen 250% 200% 150% Issuance of additional units (Paid 27 Oct 2004) Issue price at the time of first issuance of additional units (27 Oct 2004) : 810,460 yen 100% 50% Issue price at IPO(25 Sept 2003) : 510,000 yen 0% 9/25 2/20 7/12 12/2 4/26 9/15 2/10 7/3 11/21 4/16 9/4 1/31 6/23 11/12 4/8 8/28 1/26 6/18 11/9 4/4 8/24 1/19 6/8 10/ (*1) Prices used for this chart are based on the closing price. (*2) TSE REIT Index and TSE Real Estate Industry Index: assumes the closing prices on 25 Sept 2003 are 100%. Global One Real Estate Investment Corp.: assumes the initial offering price of 510,000 yen (on 25 Sept 2003) is 100%. 11

13 Performance Including Accumulated Dividends (25 Sept Oct 2012) (Yen) 2,000,000 1,500,000 Unit Price inc. accumulated dividends Unit Price Issuance of additional units (Paid 20 Apr 2007) Issue price at the time of second issuance of additional units (20 Apr 2007) :1,479,800 yen Issuance of additional units (Paid 27 Oct 2004) 1,000, ,000 Issue price at the time of first issuance of additional units (27 Oct 2004) : 810,460 yen Issue price at IPO(25 Sept 2003) : 510,000 yen 0 9/25 2/20 7/12 12/2 4/26 9/15 2/10 7/3 11/21 4/16 9/4 1/31 6/23 11/12 4/8 8/28 1/26 6/18 11/9 4/4 8/24 1/19 6/8 10/ (*1) Prices used for this chart are based on the closing price. (*2) Unit price inc. accumulated dividends=unit price+accumulated dividends 12

14 Unitholder Segment # of unitholders by segment # of units by unitholder segment (# of people) 10,000 Foreign Individuals/Institutions Domestic Institutions Financial Institutions Individuals/Others (unit) 100,000 Foreign Individuals/Institutions Domestic Institutions Other Financial Institutions Investment Trusts Individuals/Others 9,000 8,000 7,000 6,000 5, (2.15%) (1.50%) (1.55%) 98 (1.54%) 141 (2.22%) 138 (2.07%) (2.18%) (2.11%) (1.33%) (1.90%) (1.60%) (1.72%) (1.45%) (1.66%) 107 (1.60%) 90,000 80,000 70,000 60,000 50,000 13,249 (13.67%) 3,744 (3.86%) 27,431 (28.30%) 15,253 (15.74%) 3,258 (3.36%) 25,275 (26.08%) 11,916 (12.29%) 3,225 (3.32%) 26,335 (27.17%) 12,564 (12.96%) 3,200 (3.30%) 15,271 (15.75%) 3,207 (3.30%) 26,736 (27.59%) 29,846 (30.80%) 4,000 3,000 2,000 6,870 (94.78%) 5,984 (94.32%) 5,712 (94.49%) 5,816 (94.76%) 6,321 (94.98%) 40,000 30,000 20,000 34,635 (35.74%) 38,500 (39.73%) 41,679 (43.01%) 40,131 (41.41%) 31,773 (32.78%) 1, th 15th 16th 17th 18th 10, ,841 (18.41%) 14,614 (15.08%) 13,745 (14.18%) 14,269 (14.72%) 16,803 (17.34%) 14th 15th 16th 17th 18th 7,248 people 6,344 people 6,045 people 6,137 people 6,655 people 96,900 units 96,900 units 96,900 units 96,900 units 96,900 units (*) Percentage less than the second decimal place are rounded down. 13

15 Top 10 Unitholders (as of 30 September 2012) Name of unitholders # of units held Percentage to the total number of units issued (%)(*) 1 Japan Trustee Services Bank, Ltd. (Trust Acc.) 24, Trust & Custody Services Bank, Ltd. (Securities Investment Trust Acc.) 6, The Nomura Trust and Banking Co., Ltd. (Investment Trust Acc.) 4, The Master Trust Bank of Japan Ltd. (Trust Acc.) 3, The Hachijuni Bank, Ltd. 3, NOMURA BANK (LUXEMBOURG) S. A. 2, UBS AG Hong Kong 2, The Momiji Bank, Ltd. 1, MetLife Alico Life Insurance Company GA Company JPY 1, The Asahi Fire & Marine Insurance Co., Ltd. 1, Total 51, (*) Percentages less than the second decimal place are rounded down. 14

16 Section 2 Portfolio Management and Strategies The following abbreviations will be used for the following pages: GAR = Global Alliance Realty Co., Ltd. GOR = Global One Real Estate Investment Corp. Otemachi = Otemachi First Square Hirakawacho = Hirakawacho Mori Tower Ginza = Ginza First Building Minami Aoyama = TK Minami Aoyama Building Sengokuyama = ARK Hills Sengokuyama Mori Tower Tennoz = Sphere Tower Tennoz Omori = Kintetsu Omori Building Saitama = Meiji Yasuda Life Insurance Saitama Shintoshin Building Yodoyabashi = Yodoyabashi Flex Tower Nagoya = Kintetsu Shin Nagoya Building 15

17 Portfolio Management and Matters to Report for the 18th Acquisition of Sengokuyama (as of 20 Nov 2012) Acquired two floor BCP (*) ready office condo in a brand new building for approx. 8.4 billion yen Increase income stability via master lease agreement and joint management arrangement Leasing status (Otemachi, Tennoz and Nagoya) Term end occupancy ratios: Otemachi 74.9%, Tennoz 89.5%, Nagoya 98.2% Leasing activity completed for Nagoya Otemachi and Tennoz leasing activities are well underway to fill vacancy as early as possible Rental rate revisions Twenty five lease contracts were renewed during the 18 th : 12 leases were renewed at the same rental rate as in their previous lease, while 13 leases saw rental rate decreases. On average, the renewed leases rental rates declined by 14.6%. Renovations and upgrades Examined most effective ways to boost tenant satisfaction, energy efficiency and BCP readiness Made renovations and upgrades based on the above analyses Portfolio occupancy ratio Term end occupancy ratio: 95.2% (up 0.1% from the previous six month period) (*) BCP: business continuity planning 16

18 Acquisition of Sengokuyama (as of 20 November 2012) Two floor BCP ready office condo in a brand new new building for approx. 8.4 billion yen Increase income stability via master lease and joint management arrangements ents Property description Building view (1) Area overview Three minutes (*) from Roppongi itchome Station (on the Namboku Line); four minutes(*) from Kamiyacho Station (on the Hibiya Line) The neighborhood filled with world class financial institutions, law firms, consulting firms and IT companies The area is located in the urban redevelopment districts led by government and private sectors: expected to further evolve into an urban workplace w/ residences (*) The approximate time it takes by foot from a station exit to the nearest point of the property site (2) Building features Completed in August 2012 ; floor plate approx. 600 tsubo; ceiling height 2,800 mm BCP readiness (two step emergency power generators: city gas and heavy oil) Earthquake resistance (two quake control retrofits: viscous quake control walls and brake dumpers) The highest possible ratings: S in the CASBEE / AAA in the JHEP (CASBEE: building environmental sustainability, JHEP: assessment of natural environment preservation) Master Lease Agreement Approx. 10 year master lease and property management agreements executed with Mori Building Co., Ltd. Fixed master lease of approx. 3 years (Nov 2012 Nov 2015) ensures stable rental revenue (pass through master lease thereafter) 17

19 Acquisition of Sengokuyama (as of 20 November 2012) cont d Property description (1) Type of assets Trust beneficial interests in real estate (2) Location , Roppongi, Minato ku, Tokyo (3) Type of ownership Land: Co ownership of the site (Shikichi Ken) Building: 39F and 40F Condo ownership (*1) (4) Designer Mori Building Co., Ltd. First class Architect Office (5) Construction firm Obayashi Corporation (6) Year built August 2012 (7) Acquisition price 8,423,624,172 yen (8) Appraisal value 8,610 million yen (as of 05 Oct 2012) (9) Total rentable area 3, sqm(as of 20 Nov 2012) Joint Management Arrangement Incorporated via a strategic partnership of three condo owners (Mori Building Co., Ltd., Meiji Yasuda Life Insurance Co., and GOR) so that they can jointly realize profits generated by the joint management space (16 floors from 32F to 47F); revenues will be distributed to the three condo owners on a pro rata basis. Enables seamless income stream generated by the 16 floors en bloc, including GOR s two floor space, throughout the lease period: fixed master lease (2012 to 2015) and pass through master lease thereafter. Entrance (10) Structure 47 story plus 4 basement levels SRC, S, and RC with a flat roof (11) # of tenants 1 (as of 20 Nov 2012) (*2) (12) Occupancy ratio 100% (as of 20 Nov 2012) (13) Expected NOI (*3) 342 million yen (14) PML 1.6% (15) BCP readiness Quake resistance Two step emergency power generator (city gas + stored heavy oil) Two vibration control systems (viscous quake control walls + brake dumpers (*1) The Shikichi Ken, set on the site, is owned by Trustee at the ratio of 4,964,850 /100,000,000. Condo ownership of the building represents approx. 4.5% of the entire building based on the floor area as stated in articles of Condo Partnership ( Kumiai Kiyaku ) of the Condo Association Board ( Kanri Kumiai ) (*2) The number of tenants (one) is based on the assumption that all existing end tenants will agree with that Mori Building Co., Ltd. will act as a master lessee upon conclusion of the master lease agreement. (*3) An expected annualized number excluding extraordinary factors for the first year of acquisition; not an estimated number for the following accounting period; the occupancy ratios is assumed to be 100% 18

20 Leasing Status (Otemachi( Otemachi, Tennoz and Kintetsu) Otemachi and Tennoz leasing activities are well underway to fill vacancy as early as possible Otemachi Leasing Status Term end occupancy ratio: 74.9% 32 tenant candidates visited the site (+11 from previous period) Several applications / inquiries received, however conditions were not met due to competing conditions, e.g., offered by their existing owners Talks underway with 3 tenant candidates for approx. 640 tsubo as of 31 Oct Tokyo Office Supply and future strategies Kintetsu Leasing Status Term end occupancy ratio: 98.2% (+7.0% from previous period): the recovery was brought about by 2 existing tenants space expansion (for approx. 390 tsubo) Two cancellations will happen for the 19 th for approx. 190 tsubo; even after the cancellations, occupancy ratio will stand at 95% Active leasing underway to maintain occupancy, with an eye to existing tenants floor expansion (as of 31 Oct 2012, talks in progress for approx. 150 tsubo) Jan Jun 2012: excess office supply continued in the Tokyo CBD July 2012 ~: supply leveled off; peaked out vacancy ratio is expected to shrink towards year end Leasing strategies with a focus on improved occupancy Tennoz Leasing Status Term end occupancy ratio: 89.5% (two cancellations during the 18 th ) Talks w/ 3 existing tenants looking to floor expansion (conditions are yet to be met) Talks underway with 3 outside tenant candidates for approx. 1,520 tsubo as of 31 Oct 2012 (10 candidates visited the site since the 18 th ) Leasing strategies Target tenants include those who are: 1. familiar with Tennoz area, e.g., IT firms, system providers and manufactures 2. looking to cost savings via space consolidation / integration 3. looking for convenient locations, e.g., direct connection with nearby railway station, superior access to Tokyo International Airport Explore further opportunities, e.g., space expansion by existing tenants The 18 th (*1) Existing tenant s floor expansion of approx. 90 tsubo (*2) Including existing tenant s relocation within bldg. (approx. 300 tsubo) (*3) New lease on 50 tsubo (01 Oct) (*4) Including approx. 100 tsubo, vacated by existing tenant s relocation within bldg. Note: the numbers (floor areas / occupancy ratios) for the 19 th are those determined as of 31 Oct

21 Rental Rate Revisions Twenty five lease contracts were renewed during the 18 th : 12 leases were renewed at the same rental rate as in their previous lease, while 13 leases saw rent rate decreases. On average, the renewed leases rental rates declined by 14.6%. Going forward, rent renewal strategies will focus on flexible negotiations based on the property performance and rental market conditions at the time, with an eye to retaining occupancy ratios. 30.0% 20.0% 10.0% 0.0% # of rent revisions % 20.0% 30.0% Average increase rate Average decrease rate Average increase decrease rate Numbe r of rent increase Numbe r of rent decrease (*1) 11 th Mar th Sept th Mar th Sept th Mar th Sept 2011 (*1)The average increase rates, the average decrease rates and the average change rates are based on the rents excluding common area charges. (*2)Forecasts for the 19 th as of October end th Mar th Sept th Forecasts(*2) Mar 2013 Area (sqm) 6,473 35,775 5,702 20,005 14,508 22,283 7,060 16,900 6,854 Number of renewal Area (sqm) 1,492 5, ,248-3, Average increase rate 9.0 % 20.1 % 13.2 % 8.6 % % Number of rent increase Area (sqm) - 16,148 2,475 12,318 11,973 11,961 2,873 7,320 1,896 Average decrease rate % 10.2 % 10.8 % 29.0 % 11.5 % 15.5 % 14.6 % 5.0 % Number of rent decrease Average change rate 9.0 % 0.4 % 8.0 % 6.5 % 29.0 % 7.5 % 15.5 % 14.6 % 5.0 % 20

22 Renovations and Upgrades Examined most effective ways to boost tenant satisfaction, energy efficiency and disaster preparedness (BCP readiness), and made renovations / upgrades accordingly; below are some of the most notable 18 th examples. Tenant Satisfaction Ginza First Building BCP Kintetsu Shin Nagoya Disaster preparedness Otemachi First Square Fire alarm system: upgrades are being undertaken floor by floor. The cutting edge remote controlled disaster prevention systems will boost safety and maintenance efficiency HVAC: HVAC units added in the common space to create further comfortable work environment Roof top water tank: emergency isolator valve added to water tank to provide water supply in emergency circumstances Disaster preparedness Sphere Tower Tennoz Earthquake Early Warning ( EEW ) system: EEW introduced to allow for early emergency (including tsunami warning) announcement throughout the building Energy Savings Sphere Tower Tennoz Energy Savings Yodoyabashi Flex Tower Energy Savings Kintetsu Shin Nagoya LED exterior lighting: illumination sensor installed w/led to achieve energy savings LED lighting: LED installed in the elevator halls to boost energy savings Emergency evacuation lighting: updated / installed in stair wells with highly energy efficient motion sensor 21

23 Portfolio Occupancy Ratio 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Apr 2011 May June July Aug Sept Oct Nov Dec Jan 2012 As of 30 September 2012 Otemachi First Square 74.9 % Hirakawacho Mori Tower % Ginza First Building 95.1 % TK Minami Aoyama Building % Sphere Tower Tennoz 89.5 % Meiji Yasuda Life Saitama Shintoshin Building 98.2 % Yodoyabashi Flex Tower % Kintetsu Shin Nagoya Building 98.2 % Portfolio as a whole 95.2 % Feb Mar Apr May June July Aug Sept (The end of the month) Portfolio as a whole Otemachi Hirakawacho Ginza Minami Aoyama Tennoz Saitama Yodoyabashi Nagoya Portfolio (8 Properties) Occupancy ratio : 95.2% (as of 30 September 2012) (*) Percentages are rounded off to the first decimal place. 22

24 Property Values at the End of Property Name Acquisition Price (million yen) Appraisal Value at the time of acquisition (million yen) (*1) 16 th Term end Appraisal Value (million yen) (*1) 17 th Term end Appraisal Value (million yen) (*1) 18 th Term end Appraisal Value (million yen) (*1) Variance From Previous (million yen) (*1) DC method Cap Rate (%) (*2)(*3) Discount Rate (%) (*2)(*3) DCF method Terminal Cap Rate (%) (*2)(*3) Otemachi First Square 23,495 23,500 26,300 26,400 26, Hirakawacho Mori Tower 18,200 18,800 18,800 19,000 19, Ginza First Building 12,282 12,500 9,990 9,990 9, TK Minami Aoyama Building 35,000 35,040 30,680 30,570 30, Sphere Tower Tennoz(*4) 12,114 12,596 17,420 16,951 16, Meiji Yasuda Life Insurance Saitama Shintoshin Building 22,700 22,820 21,775 20,870 21, Yodoyabashi Flex Tower 7,834 7,940 6,070 6,070 6, Kintetsu Shin Nagoya Building 16,852 17,000 20,300 20,200 20, Portfolio as a whole 148, , , , , (*1) The valuations were rendered by the following appraisers: Otemachi Japan Real Estate Institute Tennoz Nagoya Hirakawacho Ginza Yodoyabashi Minami Aoyama Saitama Daiwa Real Estate Appraisal Co., Ltd. Chuo Real Estate Appraisal Co., Ltd. (*2) Percentages were used for calculations of 18th period term end appraisals. (*3) Cap rates and discount rates are weighted averages calculated based on 18th period term end appraisals. Percentages are rounded off to the first decimal place. (*4) A 33% co ownership of trust beneficial interest in Sphere Tower Tennoz was sold on 02 October 2007; therefore, the percentage shown in the chart represents the remaining 67% co ownership. (*5) Amounts of less than the first decimal place are rounded down. Property Name Appraisal Value at the end of 18 th (million yen) 1 Book Value at the end of 18 th (million yen) 2 Variance (million yen) 3=1-2 Change rate of Book Value (%) 3/2 (*5) Otemachi First Square 26,200 23,656 2, Hirakawacho Mori Tower 19,000 18, Ginza First Building 9,990 12,083-2, TK Minami Aoyama Building 30,800 34,016-3, Sphere Tower Tennoz(*4) 16,080 10,486 5, Meiji Yasuda Life Insurance Saitama Shintoshin Building 21,415 20,192 1, Yodoyabashi Flex Tower 6,100 7,300-1, Kintetsu Shin Nagoya Building 20,000 14,558 5, Portfolio as a whole 149, ,461 9, Variance per unit 94,152 ( yen) 23

25 Revenue, Expenses and NOI Return for the 18th Otemachi Hirakawa cho Ginza Minami Aoyama Tennoz Saitama Yodoya bashi Nagoya Total A. Property related revenues million yen ,288 Rental revenues million yen (*1) ,263 Other rental revenues million yen B. Property related expenses million yen ,093 Property management fees million yen Utilities expenses million yen (*2) Property and other taxes million yen Casualty insurance million yen (*1) Repairs and maintenance million yen Depreciation and amortization million yen Other rental expenses million yen C. Profits (A-B) million yen ,195 D. NOI (C+Depreciation and amortization) million yen ,937 E. Acquisition price million yen 23,495 18,200 12,282 35,000 (*3) 12,114 22,700 7,834 16, ,477 F. NOI return (D 2 E) % (*1) Otemachi First Square: not all the items are included in the chart because there was a request from co owners not to disclose broken down rental revenues and utility charges. (*2) Disclosure of detailed property related revenues/expenses was not approved by co owners of Hirakawacho Mori Tower. (*3) Sphere Tower Tennoz: the figures that appear in the chart indicate an acquisition value equivalent to a 67% co ownership of trust beneficial interest in Sphere Tower Tennoz. 24

26 Top 10 Tenants (as of 30 September 2012) Name of Tenant Type of Business Property Name Leased Area (sqm) Leased area as % of total leased area (%) (*) 1 World Co., Ltd. Wholesale, Retail TK Minami Aoyama Building 11, Mori Building Co., Ltd. Real estate, Leasing Hirakawacho Mori Tower 9, Net One Systems Co., Ltd. Wholesale, Retail Sphere Tower Tennoz 8, Nippon Life Insurance Co. Banking, Insurance Yodoyabashi Flex Tower 5, Toyotsu Syscom Corp. Telecommunications Kintetsu Shin Nagoya Building 4, NS United Kaiun Kaisha, Ltd. Transportation, Postal services Otemachi First Square 3, Japan Water Agency Services Meiji Yasuda Life Insurance Saitama Shintoshin Building 3, Adecco Ltd. Services Meiji Yasuda Life Insurance Saitama Shintoshin Building 2, Albion Co., Ltd. Manufacturing Ginza First Building 2, Sekiwa Real Estate Chubu., Ltd. Real estate, Leasing Kintetsu Shin Nagoya Building 2, (*) Leased area as % of total leased area is to the first decimal place. Total 54,

27 Portfolio Strategies Basic Policies Building Portfolio Manages and operates its portfolio properties to ensure steady portfolio growth and stable income stream in a mid to long term perspective. Provides maximum returns for unitholders, not only from a real estate investment and asset management perspective but also from a financial management perspective. Maintains long term asset value: GOR believes that it is important to invest in attractive properties from a long term standpoint properties that continue to boost investment demand for a certain period after acquisition. To this end, GOR cautiously selects prime properties at prime locations with an eye on three key elements: (1) CLOSER easily accessible from nearby train stations; (2) NEWER newly or recently built; and (3) LARGER large office buildings with extensive office space. GOR also takes into consideration strong and sustainable competitiveness in the marketplace from a mid to long term perspective. Ensures stable rent Income: focuses on mid to long term stable cash flows. It is preferable to ensure a lease agreement at the time of acquisition, which promises an immediate cash flow for the first two years. Portfolio Quality and Growth Speed Uses due care to avoid excessive expansion that could undermine unitholders interests. Looking at a mid to long holding period, GOR pursues well balanced investments in terms of quality and expansion rates, or portfolio conditions. Asset Management / Property Management Maintains its already high occupancies and improving rent incomes. With an eye on further strengthening tenant relations, GOR seeks to enhance services in all aspects to boost tenant satisfaction. That being said, it is also important to streamline management costs. Capitalizing on its expertise, GOR would like to preserve an optimum balance between maintaining the level of property management and cost savings. Ultimate goal is to ensure maximum returns for unitholders 26

28 Section 3 Financial Strategies and Forecasts for the 19 th 27

29 Financial Management Historical Flexible leverage policy based on stability in rent income, market trends and lending environment Interest bearing liabilities with a focus on long term and fixed rate debt Total unitholdersʹ eq u ity Loans Co rpora te bonds 100.0% 90.0% 80.0% 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% Effective use of tena nt security deposits LTV (Appra isa l value basis) LTV (Book value basis) Ra tio of long term / fix ed interest bearing debts (million yen) 89.9% 89.9% 89.9% 89.9% 89.9% 97.4% 100.0% 100.0% 100.0%100.0%100.0% 100.0% 1,638 1,638 1,638 1,638 1,638 1,638 25,000 25,000 25,000 25,000 19, , % 87.5% 87.5% 2,855 2,855 2,855 1, ,000 35,000 50,000 35,000 35,000 35,000 35,000 35, % 71.3% 35,000 35,000 35,000 44,200 44,200 44,200 44,200 50, , % 56.1% 53.2% 53.0% 53.0% 20,590 18,555 15,700 15,700 15,700 15,700 15, % 46.4% 46.3% 46.3% 46.3% 54.5% 80,000 26,890 26, % 38.2% 44.9% 37.3% 39.1% 39.2% 39.3% 33.1% 33.3% 46.9% 45.2% 41.3% 44.2% 43.6% 43.7% 43.7% 60,000 26,890 26,890 26, % 41,500 40, % 30.6% 33.4% 33.4% 30.3% 28.5% 29.2% 31.2% 75,026 75,026 75,026 75,026 75,026 75,026 40, % 22.2% 45,721 45,721 45,721 45,721 45,721 75,026 75,026 75,026 75,026 75,026 75,026 20,000 23,823 23,823 1 st Ended Mar 2004 Listed on TSE Acquired Tennoz, Omori and Nagoya Obtained 18B yen in longterm loan Acquired Otemachi Obtained 23.5B yen in shortterm loan 2 nd Ended Sept 2004 Repaid 1B yen in shortterm loan Refinanci ng 22.5B yen in shortterm loan 3 rd Ended Mar 2005 Sold Omori Additional issuance of units Repaid approx. 2.6B yen in long term Fully repaid 22.5B yen in short term loan Acquired Ginza Obtained 11.5B yen in long term loan 4 th Ended Sept th Ended Mar 2006 Acquired Minami Aoyama Issued 35B yen in corporate bonds 6 th Ended Sept th Ended Mar th Ended Sept 2007 Addition al issuance of units Acquired Saitama Repaid 6.3B yen in longterm loan 9 th Ended Mar 2008 Sold part of ownership of Tennoz Repaid approx. 6.2B yen in long term loan Acquired Yodoyabas hi Obtained 4.2B yen in long term loan 10 th Ended Sept 2008 Released partial security deposits for more efficient manage ment Repaid 2.855B yen in longterm loan 11 th Ended Mar th Ended Sept th Ended Mar th Ended Sept th Ended Mar 2011 Refinanci Issued Obtained ng 11.5B 15B yen 10B yen in yen in in long term longterm e bonds Corporate corporat loan loan bonds (25B yen) redeemed at maturity Acquired Hirakawac ho Obtained 18.5 B yen in longterm loan 16 th Ended Sept th Ended Mar th Ended Sept <Ref.> After the redemption of Series No.2 corporate bonds Obtained 6B yen in longterm loan Issued 4B yen in corporat e bonds Corporat e bonds(10 B yen) redeeme d at maturity 28

30 Debt Financing Status(as of 20 October 2012) Long term debt (100%) / fixed rate debt (89.9%) Obtained 10B yen (6B loans / 4B corporate bonds) on 18 Oct 2012 to redeem No. 2 corporate bonds Debt financing status Lenders Description Amount %/Years (*1) Lender UPB (million yen) Share (*) 1) Outstanding interest bearing liabilities 69,200 million yen Short term loans Long term loans Unsecured corporate bonds million yen 50,200 million yen 19,000 million yen 2) Effective use of tenant security deposit 1,638 million yen 3) Total 1) + 2) 70,838 million yen 4) LTV (book value basis) (*2) 46.3 % 5) LTV (appraisal value basis) (*2) 43.7 % 6) Long term debt to total interest bearing liabilities % 7) Fixed rate debt to total interest bearing liabilities 89.9 % 8) Average financing term (*3) 4.84 years 9) Average years to maturity (*3) 2.95 years 10) Average interest rate (p.a.) (*3) 1.31 % (*1) 1) 3) : Amounts less than one million yen are rounded down. 4) 5) : Percentages less than the second decimal place are rounded down. 6) 7) : Percentages are rounded off to the first decimal place. 8) 10) : Percentages are rounded off to the second decimal place. (*2) As of 30 September (*3) Weighted average based on outstanding interest bearing liabilities at the end of the period. The Bank of Tokyo Mitsubishi UFJ, Ltd. 12, % Mitsubishi UFJ Trust and Banking Corp. 12, % Development Bank of Japan Inc. 10, % The Norinchukin Bank 3, % The Bank of Fukuoka, Ltd. 3, % Sumitomo Mitsui Banking Corp. 3, % The Iyo Bank, Ltd. 1, % ORIX Bank Corp. 1, % The 77 Bank, Ltd. 1, % The Joyo Bank, Ltd. 1, % The Nanto Bank, Ltd. 1, % Nipponkoa Insurance Co., Ltd. 1, % The Ashikaga Bank, Ltd % Total 50, % (*) Percentages are rounded off to the first decimal place. 29

31 Borrowings (as of 20 October 2012) Breakdown Loan type Lender UPB (million yen) Drawdown date Interest rate Repayment due date Loan type Lender UPB (million yen) Drawdown date Interest rate Repayment due date Long term loans The Bank of Tokyo Mitsubishi UFJ, Ltd. 2, Jan 2008 Mitsubishi UFJ Trust and Banking Corp. 2,100 Fixed Sub total 4,200 The Bank of Tokyo Mitsubishi UFJ, Ltd. 3,000 Mitsubishi UFJ Trust and Banking Corp. 3,000 Nipponkoa Insurance Co., Ltd. 1,000 The Joyo Bank, Ltd. 1,000 The Iyo Bank, Ltd. 1,000 The Nanto Bank, Ltd. 500 The Norinchukin Bank 2,000 Sub total 11,500 The Bank of Tokyo Mitsubishi UFJ, Ltd. 1,500 Mitsubishi UFJ Trust and Banking Corp. 1,500 The Bank of Fukuoka, Ltd. 1,000 The Iyo Bank, Ltd. 500 ORIX Bank Corp. 500 Sub total 5,000 Development Bank of Japan Inc. 5, Mar Oct Fixed Fixed (*) Fixed Fixed 31 Jan Mar Sept Sept 2017 Long term loans The Bank of Tokyo Mitsubishi UFJ, Ltd. 1,500 Mitsubishi UFJ Trust and Banking Corp. 1,500 Sumitomo Mitsui Banking Corp. 2,000 The Bank of Fukuoka, Ltd. 2,000 Orix Bank Corp. 500 Sub total 7,500 Development Bank of Japan Inc. 4,000 The Bank of Tokyo Mitsubishi UFJ, Ltd. 1,500 Mitsubishi UFJ Trust and Banking Corp. 1,500 Development Bank of Japan Inc. 500 Sumitomo Mitsui Banking Corp. 1,000 Sub total 4,500 The Bank of Tokyo Mitsubishi UFJ, Ltd. 500 Mitsubishi UFJ Trust and Banking Corp. 500 Development Bank of Japan Inc. 500 Sub total 1,500 Total 50, Mar Oct Fixed Fixed Fixed Fixed 31 Mar Feb Sept Sept 2020 The Bank of Tokyo Mitsubishi UFJ, Ltd. 2,000 Mitsubishi UFJ Trust and Banking Corp. 2,000 The Norinchukin Bank 1,000 The 77 Bank, Ltd. 1, Mar Floating 31 Mar 2014 (*) As a swap agreement was concluded to hedge interest rate fluctuation risk, the rate appeared in the chart is the interest rate that reflects the effect gained through the swap transaction. The Nanto Bank, Ltd. 500 The Ashikaga Bank, Ltd. 500 Sub total 7,000 All loans are unsecured / unguaranteed. All loans are repaid in one bullet payment on the maturity date. 30

32 Corporate Bonds (as of 20 October 2012) Corporate Bonds Bond name Series No.3 Series No.4 Series No.5 Total Rating Rating agency Type of rating Rating Term 3 years 7 years 4 years Balance (million yen) Date issues 10,000 5,000 4,000 19, September October 2012 Coupon rate 1.07% 1.59% 0.66% Moodyʹs Japan K.K. Corporate bonds (issued)(*1) Series No. 3 unsecured bond Series No. 4 unsecured bond Senior debts Baa1 AA Outlook: Stable Outlook: Stable Collateral None None Guarantee None None Maturity date Redemption method (*) Use of funds 27 September September 2017 Bullet maturity amortization Redemption of the Series No. 1 unsecured bonds 18 October 2016 Bullet maturity amortization Redemption of the Series No. 2 unsecured bonds Japan Credit Rating Agency, Ltd. Corporate bonds (issued) (*2) Series No. 3 unsecured bond Series No. 4 unsecured bond Series No. 5 unsecured bond AA (*1) Ratings were given to Series No. 3 unsecured bonds and Series No. 4 unsecured bonds. (*2) Ratings were given to Series No. 3 unsecured bonds, Series No. 4unsecured bonds and Series No. 5 unsecured bonds. Covenants Negative pledge Negative pledge Notes Pari Passu clause attached Pari Passu clause attached (*) Redemption can be made at any time after the next day of issuance. 31

33 Diversified Due Dates of Interest bearing Liabilities (as of 20 October 2012) Average financing term: 4.84 years; average years to maturity: 2.95 years; average interest rate (p.a.): 1.31% Further diversified due dates (million yen) 20,000 18,000 16,000 14,000 12,000 10,000 8,000 6,000 4,000 Long term Loans (Fixed rate, Floating rate) Date Issued: 21 Oct 2005 Maturity Date: 19 Oct 2012 Interest Rate: 1.51% Drawdown Date: 31 Jan 2008 Due Date: 31 Jan 2013 Interest Rate: % 10,000 (Redeem ed) 10,000 7,000 7,500 Corporate Bonds (Fixed rate) Date Issued: 29 Sept 2010 Maturity Date: 27 Sept 2013 Interest Rate: 1.07% 11,500 Drawdown Date: 31 Mar 2010 Due Date: 31 Mar 2015 Interest Rate: 9,500 million yen: % 2,000 million yen: % Drawdown Date: 20 Oct 2010 Due Date: 30 Sept 2015 Interest Rate: % Drawdown Date: 20 Nov 2012 Due Date: 31 Mar 2017 Drawdown Date: 01 Mar 2011 Due Date: 31 Mar 2014 Interest Rate: 7,000 million yen % (Floating rate) 7,500 million yen % (Fixed rate) Date Issued: 18 Oct 2012 Maturity Date: 18 Oct 2016 Interest Rate: 0.66% (Sengoku yama) 6,000 Average financing term : Average years to maturity : Average interest rate : Date Issued: 29 Sept 2010 Maturity Date: 29 Sept 2017 Interest Rate: 1.59% 5,000 (*) as of 30 Sept 2012 Drawdown Date: 20 Oct 2010 Due Date: 29 Sept 2017 Interest Rate: % Drawdown Date: 01 Mar 2011 Due Date: 28 Feb 2018 Interest Rate: % Before redemption 5.00 years 2.15 years 1.39 % Drawdown Date: 18 Oct 2012 Due Date: 30 Sept 2019 Interest Rate: % Drawdown Date: 20 Nov 2012 Due Date: 29 Mar 2019 After redemption 4.84 years 2.95 years 1.31 % Drawdown Date: 18 Oct 2012 Due Date: 30 Sept 2020 Interest Rate: % 2,000 0 The 18th Sept ,200 The 19th Mar 2013 The 20th Sept 2013 The 21th Mar 2014 The 22th Sept 2014 The 23th Mar ,000 The 24th Sept 2015 The 25th Mar 2016 The 26th Sept ,000 The 27th Mar ,000 The 28th Sept ,000 The 29th Mar 2018 The 30th Sept 2018 (Sengoku yama) 2,000 The 31th Mar ,500 The 32th Sept 2019 The 33th Mar ,500 The 34th Sept

34 Earnings Forecasts for the 19th Title 16 th (Sept 2011) 17 th (Mar 2012) 18 th (Sept 2012) Previous forecast (*2) 19 th (Mar 2013) Revised forecast Forecasts Amount of change (Unit: million yen) Changes from previous six month period Operating revenue 4,087 4,331 4,288 4,304 4, % Operating profit 1,606 1,874 1,798 1,764 1, % Ordinary profit 1,084 1,348 1,273 1,241 1, % Net income 1,082 1,347 1,273 1,240 1, % < Assumptions > (*1) Following the acquisition of Sengokuyama, GOR will hold a total of 9 properties through the end of the 19 th without any acquisitions or disposition being made during the period. Depreciation / amortization expenses: approximately 780 million yen (+37 million yen from previous period) Operating expenses other than propertyrelated expenses: approximately 411 million yen (+ 13 million yen from previous period) Non operating expense (e.g., interest expenses) : approximately 551 million yen (+ 22 million yen from previous period) # of units issued (unit) Net income per unit (*4) Dividend per unit (yen) 96,900 96,900 96,900 96,900 96,900 11,167 13,901 13,137 12,800 13, % (*1) For more information, please see the Summary of Financial Results for the Six Month Ended September 2012 released on 15 November (*2) For more information, please see Earnings Forecasts for the Six Month Ending Mar 2013 released on 26 September (*3) Numbers less than the indicated units/digits are rounded down. Percentages of Changes from previous sixmonth period are rounded off to the first decimal place. (*4) Net income divided by the number of units issued (*5) Amounts of less than 100 yen are rounded down. (*5) (*5) 11,167 13,902 13,138 12,800 13, % (*5) (*5) < Main reasons for increases/decreases > Operating revenue: (+177 million yen) Sengokuyama contributes to an increase in operating revenue (approx. four months) Increase in rental income (approx. 60 million yen for the 19 th ) due to decreased amounts related to rent free periods Increase in revenue: Otemachi, Minami Aoyama and Nagoya Decrease in revenue: Ginza, Tennoz and Saitama Operating expenses (+ 107million yen) Sengokuyama contributes to an increase in operating expenses (approx. four months) Increased repair expenses 33

35 Section4 Reference Data 34

36 Portfolio (as of 20 November 2012) Portfolio Strategies Invests in properties with a focus on Market competitiveness Competitiveness in the mid to long term Features CLOSER easily accessible from nearby train stations Otemachi First Square Hirakawacho Mori Tower Ginza First Building TK Minami Aoyama Building Walking Distance:0 5 min. NEWER newly or recently built Average age of building:approx years Portfolio PML:1.9% LARGER large office buildings Average acquisition price:17.4 billion yen Average gross rentable area :12,123 sqm ARK Hills Sengokuyama Mori Tower Sphere Tower Tennoz Meiji Yasuda Life Insurance Saitama Shintoshin Building Yodoyabashi Flex Tower Kintetsu Shin Nagoya Building 35

37 Portfolio Features (1) CLOSER (as of 20 November 2012) Otemachi First Square Hirakawacho Mori Tower Ginza First Building TK Minami Aoyama Building Excellent proximity! Zero to five minute walk to nearby train stations! ARK Hills Sengokuyama Mori Tower Sphere Tower Tennoz Meiji Yasuda Life Insurance Saitama Shintoshin Building Yodoyabashi Flex Tower Kintetsu Shin Nagoya Building 36

38 Portfolio Features (2) NEWER (as of 20 November 2012) Age of Building PML (Probable Maximum Loss in the case of a major earthquake) (Age) 40.0 (%) Ote machi Major renovations completed in March Hirakawa cho 14.3 Ginza Tennoz Saitama Yodoya bashi 19.8 Nagoya 13.2 Portfolio Average Ote machi 2.6 Hirakawa cho 4.7 Ginza Minami Sengoku Aoyama yama Minami Seogoku Tennoz Aoyama yama Saitama Yodoya bashi Nagoya Portfolio PML (*1) Based on the age as of 20 November 2012 (*2) Average age of Portfolio properties are weighted average based on gross rentable area. (*) Source seismic report provided by OYO RMS Corporation Average Age of Portfolio Properties Approx years Portfolio PML 1.9% 37

39 Portfolio Features (3) LARGER (as of 20 November 2012) Total Floor Area (including total floor area of the building that contains office condo space) Gross Rentable Area (in case of co ownership, ownership, floor area in proportion to the interest) (sqm) 90,000 80,000 70,000 60,000 50,000 40,000 30,000 20,000 10, , ,667 78,897 58,958 51,094 47,151 27,152 20,958 12,479 10,997 Ote Hirakawa Ginza Minami Sengoku Tennoz Saitama Yodoya Nagoya Portfolio machi cho Aoyama yama bashi Average (sqm) 30,000 25,000 20,000 15,000 10,000 5, ,704 17,902 18,578 13,741 12,123 9,927 8,203 7,697 7,394 3,963 Ote Hirakawa Ginza Minami Sengoku Tennoz Saitama Yodoya Nagoya Portfolio machi cho Aoyama yama bashi Average (*) Figures less than the indicated unit are rounded down. (*) Figures less than the indicated unit are rounded down. Total Floor Area per Property Average Gross Rentable Area per Property 58,958 sqm 12,123 sqm Acquisition Price Total Acquisition Price and Composition Ratio (100 million yen) Ote Hirakawa Ginza Minami Se ngoku Tennoz Saitama Yodoya Nagoya Portofolio machi cho Aoya ma ya ma bashi Ave ra ge (*1) Figures for Sphere Tower Tennoz indicate the acquisition price in proportion to the co ownership interest of 67%. (*2) Figures less than the indicated unit are rounded down. Total Acquisition Price 9 properties, billion yen Average Acquisition Price per Property 17.4 billion yen Major three metropolitan areas other than Tokyo Metropolitan Area 15.7% Naogya Tokyo suburban areas 14.5% Tokyo 23 Wards other than the central 5 Wards 7.7% Yodoya 10.7% bashi 5.0% Saitama 14.5% Otemachi 15.0% Tennoz Sengoku Minami 7.7% yama Aoyama 5.4% 22.3% Hirakawacho 11.6% Ginza 7.8% Tokyo central 5 Wards 62.1% (*1) Composition Ratio is calculated based on the acquisition price in proportion to the total acquisition price, rounded off to the first decimal place. (*2)The Tokyo Central 5 Wards include Chiyoda ku, Chuo ku, Minato ku, Shinjuku ku and Shibuya ku. 38

40 Otemachi First Square Property Overview Location: Land Area: Floor Area: Structure: 1 5 1, Otemachi, Chiyoda ku, Tokyo 10, sqm 141, sqm (GOR dedicated area = approx. 9.14%) 23 story plus 5 basement level S, SRC with a flat roof Year Built: West Tower : Feb 1992 East Tower: Feb 1998 <The following indicates the GOR condo space> Acquisition Date: 25 Dec 2003 Acquisition Price: 23,495 million yen (less than one million yen rounded down) Appraisal at Acquisition: 23,500 million yen (as of 01 Jul 2003) Term end Appraisal: 26,200 million yen (as of 30 Sept 2012) Gross Rentable Area: 8, sqm (as of 30 Sept 2012) Occupancy Ratio: 74.9% (as of 30 Sept 2012) Type of Lease Contract: Others: Standard lease Fixed term lease Major renovations were carried out in March 2010 for the condo space (18 22F). 39

41 Otemachi First Square ( Diagrammatic view ) 23 F 22 F 21 F 20 F 19 F 18 F 17 F 16 F 15 F 14 F 13 F 12 F 11 F 10 F 9F 8F 7F 6F 5F 4F 3F 2F 1F B1 F B2 F B3 F B4 F B5 F West Tower Co ownership Co ownership Atrium East Tower Co ownership Co ownership (*1) Ratio of GOR s Co ownership Ratio of GOR s co ownership 988,726 / 10,000,000 Ratio of GOR s co ownership 320,431 / 3,178,247 (*2) The asset that GOR owns is the trust beneficial interest in real estate, and the owner of the real estate is Mitsubishi UFJ Trust and Banking Corporation. 40

42 Hirakawacho Mori Tower Property Overview Location: Land Area: Floor Area: Structure: , Hirakawacho, Chiyoda ku, Tokyo 5, sqm 51, sqm (GOR dedicated area = approx. 26.3%) 24 story plus 3 basement level S, SRC, with a flat roof Year Built: Dec 2009 <The following indicates the GOR owned space> Acquisition Date: 01 Mar 2011 Acquisition Price: 18,200 million yen Appraisal at Acquisition: 18,800 million yen (as of 14 Jan 2011) Term end Appraisal: 19,000 million yen (as of 30 Sept 2012) Gross Rentable Area: 9, sqm (as of 30 Sept 2012) Occupancy Ratio: 100.0% (as of 30 Sept 2012) Type of Lease Contract: Others: Fixed term lease Master lease agreement with Mori Building Co., Ltd. A fixed term lease of 5 years and 1 month (fixed monthly rents for the first 3 years and 1 month until 31 March 2014; pass through lease for the remaining period) 41

43 Hirakawacho Mori Tower ( Diagrammatic view ) Roof 23 F 22 F 21 F 20 F 19 F 18 F 17 F 16 F 15 F 14 F 13 F 12 F 11 F 10 F 9F 8F 7F 6F 5F 4F 3F 2F 1F B1 F B2 F B3 F Lobby Roof garden Residence 14F~23F Office Office Retail space Office 2F~13F (*1) Area owned by GOR (*2) The asset that GOR owns is the trust beneficial interest in real estate, and the owner of the real estate is Mitsubishi UFJ Trust and Banking Corporation. 42

44 Ginza First Building Property Overview Location: Land Area: Floor Area: Structure: , Ginza, Chuo ku, Tokyo 1, sqm 12, sqm (GOR dedicated area = approx. 92.1%) 11 story plus 3 basement level S, RC, SRC with a flat roof Year Built: Aug 1998 <The following indicates the GOR owned space> Acquisition Date: 29 Mar 2005 Acquisition Price: 12,282 million yen Appraisal at Acquisition: 12,500 million yen (as of 30 Nov 2004) Term end Appraisal: 9,990 million yen (as of 30 Sept 2012) Gross Rentable Area: 7, sqm (as of 30 Sept 2012) Occupancy Ratio: 95.1% (as of 30 Sept 2012) Type of Lease Contract: Standard lease Fixed term lease 43

45 TK Minami Aoyama Building Property Overview Location: Land Area: Floor Area: Structure: , Minami Aoyama, Minato ku, Tokyo 3, sqm 20, sqm 17 story plus 2 basement level S, SRC with a flat roof Year Built: May 2003 Acquisition Date: 21 Oct 2005 Acquisition Price: 35,000 million yen Appraisal at acquisition: 35,040 million yen (as of 31 Jul 2005) Term end Appraisal: 30,800 million yen (as of 30 Sept 2012) Gross Rentable Area: 13, sqm (as of 30 Sept 2012) Occupancy Ratio: 100.0% (as of 30 Sept 2012) Type of Lease Contract: Standard lease 44

46 ARK Hills Sengokuyama Mori Tower Property overview Location: Land Area: Floor Area: Structure: , Roppongi, Minato ku, Tokyo 15, sqm 140, sqm (GOR dedicated area = approx. 4.5%) 47 story plus 4 basement level S, RC, SRC with a flat roof Year Built: Aug 2012 <The following indicates the GOR owned space> Acquisition Date: 20 Nov 2012 Acquisition Price: 8,423 million yen (less than 100 yen rounded off) Appraisal at Acquisition: 8,610 million yen (as of 05 Oct 2012) Gross Rentable Area: 3, sqm (39F and 40F) Occupancy Ratio: 100% (estimated on 20 Nov 2012) Type of Lease Contract: Others: Standard lease Master lease with Mori Building Co., Ltd. (fixed master lease for the first 3 years from Nov 2012 to Nov 2015; passthrough master lease thereafter) / Joint management arrangement (32F 47F) with other sectional owners 45

47 ARK Hills Sengokuyama Mori Tower ( Diagrammatic view ) Observation deck Roof top terrace PH 47 F 46 F 45 F 44 F 43 F 42 F 41 F 40 F 39 F 38 F 37 F Office 36 F 35 F 34 F 33 F 32 F 31 F 30 F 29 F 28 F 27 F 26 F Premium office 25 F Sky lounge Premium office View lounge 24 F Residence 3F 2F Office Retail 1F Entrance Retail B1 F Parking lot B1 Entrance Parking lot Retail B2 F Parking lot Retail B3 F Parking lot B4 F (*1) Area owned by GOR (*2) Joint management areas owned by other sectional owners (*3) The asset that GOR owns is the trust beneficial interest in real estate, and the owner of the real estate is Mitsubishi UFJ Trust and Banking Corporation. 46

48 Sphere Tower Tennoz Property Overview Location: Land Area: Floor Area: Structure: 2 2 8, Higashi Shinagawa, Shinagawa ku, Tokyo 6, sqm 47, sqm 27 story plus 2 basement level S, RC, SRC with a flat roof Year Built: Office Space: April 1993 Machine Room (co owned): Jun 1991 <the following explains the 67% co ownership space of which beneficial interests are owned by GOR> (less than a million yen rounded down) Acquisition Date: 26 Sept 2003 Acquisition Price: 12,114 million yen Appraisal at Acquisition: 12,596 million yen (as of 31 Mar 2003) Term end Appraisal: 16,080 million yen (as of 30 Sept 2012) Gross Rentable Area: 17, sqm (as of 30 Sept 2012) Occupancy Ratio: 89.5 % (as of 30 Sept 2012) Type of Lease Contract: Standard lease Fixed term lease 47

49 Meiji Yasuda Life Insurance Saitama Shintoshin Building Property Overview Location: Land Area: Floor Area: Structure: 11 2, Shintoshin, Chuo ku, Saitama City, Saitama Prefecture 7, sqm 78, sqm 35 story plus 3 basement level RC, SRC with a flat roof Year Built: March 2002 <the following indicates GOR owned space> Acquisition Date: 25 Apr 2007 Acquisition Price: 22,700 million yen Appraisal at Acquisition: 22,820 million yen (as of 01 Feb 2007) Term end Appraisal: 21,415 million yen (as of 30 Sept 2012) Gross Rentable Area: 21, sqm (as of 30 Sept 2012) Occupancy Ratio: 98.2% (as of 30 Sept 2012) Type of Lease Contract: Fixed term lease 48

50 Yodoyabashi Flex Tower Property Overview Location: , Koraibashi, Chuo ku, Osaka City, Osaka Prefecture Land Area: Floor Area: Structure: 1, sqm 10, sqm 12 story plus 1 basement level SRC with a flat roof Year Built: November 2006 Acquisition Date: 31 Jan 2008 Acquisition Price: 7,834 million yen Appraisal at acquisition: 7,940 million yen (as of 01 Nov 2007) Term end Appraisal: 6,100 million yen (as of 30 Sept 2012) Gross Rentable Area: 7, sqm (as of 30 Sept 2012) Occupancy Ratio: 100.0% (as of 30 Sept 2012) Type of Lease Contract: Standard lease Fixed term lease 49

51 Kintetsu Shin Nagoya Building Property Overview Location: , Meieki, Nakamura ku, Nagoya City, Aichi Prefecture Land Area: Floor Area: Structure: 2, sqm 27, sqm 18 story plus 1 basement level RC, SRC with a flat roof Year Built: March 1993 Acquisition Date: 26 Sept 2003 Acquisition Price: 16,852 million yen Appraisal at Acquisition: 17,000 million yen (as of 31 Mar 2003) Term end Appraisal: 20,000 million yen (as of 30 Sept 2012) Gross Rentable Area: 18, sqm (as of 30 Sept 2012) Occupancy Ratio: 98.2% (as of 30 Sept 2012) Type of Lease Contract: Standard lease Fixed term lease 50