Message from Executive Director

Momoko Sasaki
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.
　My name is Momoko Sasaki, and I was appointed Exective Director of TOKYU REIT on May 1, 2025. We appreciate your continued guidance and encouragement, as we will make utmost efforts for the development of TOKYU REIT.
　I hereby report our operating environment and results for the fiscal period ended January 2025.
　During the fiscal period ended January 2025, we disposed of CONZE Ebisu and recorded a ¥1,853-million gain on the sale of real estate, etc. as well as a ¥877-million provision of reserve for reduction entry of replaced property. Operating income was ¥5,171 million (a decrease of ¥12 million period over period), net income was ¥4,705 million (a decrease of ¥45 million period over period), and net income per unit was ¥4,812 (a decrease of ¥46 period over period) for the fiscal period ended January 2025. The distribution per unit will be ¥4,002 (an increase of ¥202 period over period), with provision and partial reversal of reserve for reduction entry of replaced property.
　With regard to the upcoming fiscal periods, in the fiscal period ending July 2025, we expect to record a gain on sale of real estate, etc. due to the decision to dispose of the TOKYU REIT Toranomon Building across three financial periods, and net income per unit is forecast to be ¥4,796 (a decrease of ¥16 period over period). In the fiscal period ending January 2026, net income per unit is forecast to be ¥4,686 (a decrease of ¥109 period over period).
　We are planning a distribution per unit of ¥4,000 (a decrease of ¥2 period over period) after provision and partial reversal of reserve for reduction entry of replaced property for the fiscal period ending July 2025, and ¥4,000 (the same amount as previous fiscal period) after provision and partial reversal of reserve for reduction entry of replaced property for the fiscal period ending January 2026 as well. Continuing from the previous fiscal period, in order to achieve the “Adjusted EPS” medium-term target of ¥3,500, defined as the amount obtained by deducting the gain on sale of real estate, etc. per unit from EPS and adding the amount of reversal of reserve for reduction entry of replaced property per unit, we will promote implementation of measures that contribute to the improvement of unitholder value in terms of financial and capital policies, in addition to external and internal growth.
　We have decided to acquire and cancel our own investment units using the funds from sales in March 2025. The decision to acquire our own investment units is the result of comprehensive consideration of the level of investment unit price, status of cash on hand, financial status, and market environment, etc., and we will continue to explore implementation of measures that place the highest priority on maximizing unitholder value.
　In terms of sustainability initiatives, we will pursue initiatives in various ESG fields based on our “Sustainability Policy” such as increasing the acquisition ratio of environmentally certified buildings, acquiring external certifications, and increasing disclosure to stakeholders.
　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.

May 2025