Portfolio Development Policy

NIPPON REIT endeavors to develop a comprehensive portfolio of properties focused on income growth and stability, aiming to maximize unitholder value.

Develop a Comprehensive Portfolio Comprising Office Buildings, Residential Properties and real estates used for other purposes

Develop a Comprehensive Portfolio Comprising Office Buildings, Residential Properties and Retail Facilities as Major Investment Targets

(Note 1)	“Investment ratio by asset type for the entire portfolio” refers to the figure obtained by dividing the total acquisition price of the investment assets of respective types by the total acquisition price of all the investment assets.
(Note 2)	“Investment ratio by area for each asset type” refers to the figure obtained by dividing the total acquisition price of the investment assets of respective types in respective areas by the total acquisition price of investment assets of respective types in all areas.
(Note 3)	"Tokyo Economic Area" refers to Tokyo Metropolis, Kanagawa Prefecture, Chiba Prefecture, and Saitama Prefecture.
(Note 4)	“3 Major Metropolitan Areas" refers to the Tokyo economic area, the Osaka economic area ( Osaka Prefecture, Kyoto Prefecture, Hyogo Prefecture ), and the Nagoya economic area ( Aichi Prefecture, Gifu Prefecture, Mie Prefecture ).

Office buildings: Centered on the Tokyo
Economic Area; Concentration of companies; Growth potential

NIPPON REIT's understanding of investment characteristics

●	Income growth is expected in the economic expansion phases, as tenant demand and rent levels are relatively prone to changes in accordance with business cycles
●	Liquidity is secured at a certain level, as the investment market has a relatively large size
●	Tokyo Economic Area: solid tenant demand is expected, given the high concentration of companies

Residential properties: Centering on the 3
Metropolitan Areas; Concentration of population; Stability

NIPPON REIT's understanding of investment characteristics

●	Rental demand and rent levels are expected to remain relatively stable without being influenced by business cycles
●	3 Major Metropolitan Areas: Demand for rental residential properties at a certain level is anticipated, given the high concentration of population

Other properties: Securing diverse investment oppotunities in light of changes in the social environment; Growth potential / Stability

NIPPON REIT's understanding of investment characteristics

Accommodation Facilities

●	Have a revenue structure that differs from offices and residences, enabling portfolio risk diversification and expansion of income opportunities.
●	By investing in hotels with variable rent structures, it is expected to benefit from increased hotel revenues driven by growing demand for accommodations.

Urban retail facilities

●	Relatively high profitability is expected, as they are located in the center of cities where brisk consumption activities are anticipated against the backdrop of population inflow
●	More replacement tenants are expected to be available

Retail properties in community life in close contact

●	Stable income can be expected based on long-term fixed rent contracts with major tenants
●	Solid tenant demand is anticipated in response to stable needs closely connected to the community lives