Kazuyoshi Kashiwazaki
Executive Director
TOKYU REIT, Inc.

 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 fiscal period ended January 2022.
 During the fiscal period ended January 2022, we disposed Shonan Mall Fill (land with leasehold interest) and Daikanyama Forum in August 2021 as well as acquired Aoyama Oval Building and disposed Setagaya Business Square and OKI System Center (land with leasehold interest) in December 2021. With the disposition of the above 4 properties, gain on sale of real estate of \4,702 million and provision of reserve for reduction entry of replaced property of \3,209 million were posted. As a result, despite the decrease in revenue and income due to the extension work of Tokyu Toranomon Building, operating income stood at ¥7,481 million (increase of ¥3,499 million period on period), net income at ¥7,071 million (increase of ¥3,531 million period on period) and net income per unit at ¥7,233 (increase of ¥3,612 period on period). After retaining a portion as provision of reserve for reduction entry of replaced property, distribution per unit will be ¥3,950 (increase of ¥329 period on period). 
 Positioning ESG and the SDGs as important management issues, TOKYU REIT and Tokyu REIM have promoted identification of material issues (materiality) and ESG initiatives in various fields. In March 2022, Tokyu REIM established the "Sustainability Policy,” which describes the stance of initiatives towards the contribution to the realization of a sustainable society, sustainable growth aiming to make TOKYU REIT a "100-year REIT" as well as the improvement of unitholder value, and set up the Sustainability Promotion Committee to create a promotion system. TOKYU REIT and Tokyu REIM will continue to press ahead with initiatives for realizing a sustainable society.
 With regard to the next fiscal period onward, while the extension work at Tokyu Toranomon Building is likely to increase repairs and maintenance expenses and such in the fiscal period ending July 2022, gain on sale of real estate of \2,024 million from the disposition of OKI System Center (land with leasehold interest) and Akasaka 4-chome Building (Tokyu Agency Inc. Head Office Building) and provision of reserve for reduction entry of \424 million are expected to be posted. Furthermore, in the fiscal period ending January 2023, although an increase in revenue from the extended portion of Tokyu Toranomon Building is expected, income is forecast to decrease due to the decrease in gain on sale of real estate.
 Distribution per unit is projected to be ¥3,910 (decrease of ¥40 period on period) for the fiscal period ending July 2022 and ¥3,200 (decrease of ¥710 period on period) for the fiscal period ending January 2023 with a partial reversal of the reserve for reduction entry.
 TOKYU REIT will continue to 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 2022