Message from Executive Director

On behalf of TOKYU REIT, I would like to express my sincere appreciation to all of you, our unitholders, for your continued support and patronage to us.

I hereby report our operating environment and results for the 27th fiscal period August 1, 2016 to January 31, 2017.

Kazuyoshi Kashiwazaki
Executive Director
TOKYU REIT, Inc.
Representative Director & President, Chief Executive Officer
Tokyu Real Estate Investment Management Inc.

Kazuyoshi Kashiwazaki

In the fiscal period under review, TOKYU REIT disposed Tokyu Saginuma 2 Building to Tokyu Corporation, the sponsor, in January 2017 as part of property replacement continuing from the previous fiscal period.
As a result, the number of properties within the portfolio of TOKYU REIT as of the end of January 2017 became 28 with total appraisal value of ¥245.2 billion (unrealized gains of ¥35.0 billion) and the overall portfolio occupancy rate was 97.1%.
As for performance of the fiscal period under review, TOKYU REIT posted ¥7,514 million in operating revenues and ¥2,952 million in net income with posting of ¥541 million of gain on sales of property accompanied by the disposition of Tokyu Saginuma 2 Building.
As a result of retaining a portion of gain on sales of properties above as provision of reserve for reduction entry, we decided to declare a cash distribution per unit of ¥2,746 (up ¥51 from the previous fiscal period and up ¥116 from the performance forecast).
I believe the “Notice of Convocation of the Eighth General Meeting of Unitholders” has already been sent to unitholders.
At the Eighth General Meeting of Unitholders, partial amendments to the Articles of Incorporation and the election of an executive director and supervisory directors will be resolved. (Please refer to “Notice of Convocation of the Eighth General Meeting of Unitholders” for further details.)
The outline of partial amendments to the Articles of Incorporation includes changing the use of properties in which TOKYU REIT invests in order to expand investment opportunities while maintaining its policy of focusing on the Tokyo’s central five wards and the Tokyu Areas as its core investment targets as well as changing provisions related to the amendments to laws.
With regard to the election of directors, Kazuyoshi Kashiwazaki’s or my reappointment as executive director, and reappointment of Giichi Yanagisawa and Maruhito Kondo as supervisory directors will be proposed.
After the conclusion of the General Meeting of Unitholders, our investment management company will hold a management status meeting for the 27th fiscal period and I would appreciate it if you could attend.
TOKYU REIT will strive to maximize unitholder value through “investment in highly competitive properties in areas with strong growth potential.”
TOKYU REIT greatly appreciates your continued support.

March 2017

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