Global One Real Estate Investment : Financial Report

Global One Real Estate Investment Corp.

(Code: 8958)

Semiannual Report

For the 41st Period

From 1 October 2023 to 31 March 2024

https://www.go-reit.co.jp/en/

About GOR

The investment theme of GOR is to acquire superior office buildings that have a competitive edge

Global One Real Estate Investment Corporation ("GOR") is a Japanese Real Estate Investment Trust (J-REIT) listed on the Tokyo Stock Exchange (TSE: 8958) with the ultimate goal of pursuing maximum returns for unitholders. GOR cautiously selects prime properties at prime locations with an eye on "strong and sustainable competitiveness in the marketplace." The three key watchwords in selecting properties are: (1) Conveniently situated; (2) Newly or recently built; and

(3) Large office buildings.

https://www.go-reit.co.jp/en/Address: 1-5-1,Otemachi, Chiyoda-kuTokyo, Japan 100-0004

Phone: [phone]

Table of Contents
Corporate Profile / Milestones --------------------------------------------	2
Financial Highlights ---------------------------------------------------------	7
Investment Unit Price Performance / Business Structure ----------	8
Property Map -----------------------------------------------------------------	9
Portfolio List -------------------------------------------------------------------	10
Property Overview ----------------------------------------------------------	12
Portfolio Highlights ---------------------------------------------------------	17
Financial Summary
Balance Sheet ------------------------------------------------------------	19
Statement of Income and Retained Earnings---------------------	21
Statement of Changes in Net Assets--------------------------------	22
Statement of Cash Distributions ------------------------------------	23
Statement of Cash Flows----------------------------------------------	24
Notes to Financial Statements ---------------------------------------	25
Independent Auditor's Report---------------------------------------------	42
Disclaimer / Contact ---------------------------------------------------------	45

1

Corporate Profile / Milestones

GOR was established in April 2003 under the Act on Investment Trusts and Investment Corporations of Japan ("the Investment Trust Act"). In September 2003, GOR achieved an IPO on the Real Estate Investment Trust Section of the Tokyo Stock Exchange (Securities Code:8958) where an additional 48,000 units were issued and 23,623 million yen in funds were raised.

The investment theme of GOR is to acquire superior office buildings that have a competitive edge

GOR primarily invests in real estate (comprising office buildings and parcels of land on which those buildings are situated), securities backed by that real estate, trust beneficial interests in that real estate, and other types of assets. GOR cautiously selects prime properties at prime locations with an eye on "strong and sustainable competitiveness in the marketplace." The three key watchwords in selecting properties are: (1) Conveniently situated; (2) Newly or recently built; and (3) Large office buildings.

GOR Portfolio includes 15 office buildings with the following features (as of 31 March 2024).

Portfolio occupancy rate	97.2 %
Average building age	Approx. 18.6 years
Total acquisition price	208.5 billion yen
Average acquisition price	13.9 billion yen
Total leasable area	156,311 sqm
Average leasable area	10,421 sqm

Sale of the property

GOR sold the property on 25 March 2024, as outlined below.
	Name of building	Otemachi First Square
	Location (Residence indication)	1-5-1, Otemachi, Chiyoda-ku, Tokyo
	Land area (*1)	Total land area: 10,998.97 sqm
	Of which, the area of the subject parcel of land: 1,088.61 sqm
	Floor area (*1)	Total floor area of the entire building: 141,228.06 sqm
	Floor area of subject section: 9,235.43 sqm
		Trust beneficial interests
		Land : Ownership (3 of the 7 parcels of the total land area)
		Building: Sectional ownership and co-ownership of sectional ownership
	Transferred asset	1st transfer	25	%
	2nd transfer	30	%
		3rd transfer	30	%
		4th transfer	10	%
		5th transfer	5	%
	Contract date	24 October 2022
		1st transfer	6 December 2022
		2nd transfer	25	September 2023
	Dates of transfer	3rd transfer	25	March 2024
		4th transfer	25	September 2024 (scheduled)
		5th transfer	23	October 2024 (scheduled)
		Total 27,000 million yen
		1st transfer	6,750 million yen
	Transfer price (*2)	2nd transfer	8,100 million yen
	3rd transfer	8,100 million yen
		4th transfer	2,700 million yen (scheduled)
		5th transfer	1,350 million yen (scheduled)
		888 million yen of gain on sales of real estate was recorded as operating revenue
		during the six-month period ended March 2023.
	Material impact on earnings	1,099 million yen of gain on sales of real estate was recorded as operating
		revenue during the six-month period ended September 2023.
		1,084 million yen of gain on sales of real estate was recorded as operating

2

revenue during the six-month period ending March 2024.

363 million yen of gain on sales of real estate will be recorded as operating revenue during the six-month period ending September 2024.

181 million yen of gain on sales of real estate will be recorded as operating revenue during the six-month period ending March 2025.

TransfereeDAIBIRU CORPORATION

(*1) "Land area" and "floor area" are shown based on the registration, unless otherwise stated.

(*2) The transfer price represents the prices described in the purchase agreement, excluding related expenses, settlement amount of property tax and city planning tax, consumption tax and local consumption tax.

Exchange of the property

(a)GOR acquired and transferred the property on 30 November 2023, as outlined below.

Outline of the Exchange
Destination of Exchange:	Nippon Building Fund Inc.
Date of Contract:	29 September 2023
Date of Delivery:	30 November 2023
Exchange Difference:	The exchange difference (67 million yen), which is the difference between the
	acquisition price of the Asset Acquired and the transfer price of the Asset
	Transferred, was paid to Nippon Building Fund Inc. on the delivery date with
	cash on hand.
Reduction Entry:	With respect to the Asset Acquired, the provisions of Article 50 of the
	Corporation Tax Law of Japan, ʺDeductible expenses for assets acquired

through exchange" were applied and the reduction entry was made, and there was no gain on the transfer.

Outline of Asset Acquired by Exchange

	Name of building	Global One Ueno
	Type of specified asset	Trust beneficial interests in real estate
	Location (Residence indication)	4-24-11, Higashiueno, Taito-ku, Tokyo
	Land (*1)	Type of ownership		Site rights (co-ownership interests) (*2)
	Land area		2,405.22 sqm (entire building)
		Type of ownership		Sectional ownership (1 basement floor, 1 partial
			ground floor, 4th - 13th floors)
		Use		Office
				15,467.77 sqm (entire building)
	Building (*1)	Floor area		Of which, area subject to acquisition: 10,339.37
				sqm (*3)
		Date built		January 2010
		Structure		13-story plus 2 basement levels, SRC with a flat
			roof (entire building)
	Acquisition price (*4)	9,900 million yen
Outline of Asset Transferred by Exchange
	Name of building	Yodoyabashi Flex Tower
	Type of specified asset	Trust beneficial interests in real estate
	Location (Residence indication)	3-3-11, Koraibashi, Chuo-ku, Osaka City, Osaka
	Land (*1)	Type of ownership		Ownership (Trust beneficial interests)
	Land area		1,692.51 sqm
		Type of ownership		Ownership (Trust beneficial interests)
	Building (*1)	Use		Office and Parking
	Floor area		10,997.50 sqm
		Date built		November 2006

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	Structure	12-story plus 1 basement level, SRC with a flat
	roof
Transfer price (*4)	9,833 million yen

(*1) "Land area", "use", "floor area", "year built" and "structure" are shown based on the registration, unless otherwise stated.

(*2) Site rights have been established for the land, and the trustee has a co-ownership interest of 1,126,293/1,442,798 in the land.

(*3) The portion subject to acquisition is equivalent to approximately 78.06% of the entire co-ownership interest in accordance with the management agreement of the management association.

(*4) The acquisition price and transfer price represent the prices described in the exchange agreement, which do not include related expenses, settlement amount of property tax and city planning tax, consumption tax and local consumption tax.

(b)GOR acquired and transferred the property on 28 March 2024, as outlined below.

Outline of the Exchange
Destination of Exchange:	DAIBIRU CORPORATION
Date of Contract:	16 November 2023
Date of Delivery:	28 March 2024
Exchange Difference:	The exchange difference (139 million yen), which is the difference between the
	acquisition price of the Asset Acquired and the transfer price of the Asset
	Transferred, was received on the delivery date from DAIBIRU
	CORPORATION, the counterparty of the exchange.
Reduction Entry:	With respect to the Asset Acquired, the provisions of Article 50 of the
	Corporation Tax Law of Japan, ʺDeductible expenses for assets acquired
	through exchange" were applied and the reduction entry was made, and there
	was no gain on the transfer.
Outline of Asset Acquired by Exchange (1)
Name of building		Shin-Daibiru Building
Type of specified asset		Real estate
Location (Residence indication)		1-2-1, Dojimahama, Kita-ku, Osaka city, Osaka
Land (*1)		Type of ownership	Ownership (5% co-ownership)
	Land area	8,426.76 sqm (entire land)
		Type of ownership	Ownership (5% co-ownership)
		Use	Office, Parking and Retail
Building (*1)		Floor area	75,826.76 sqm (entire building)
	Date built	March 2015
		Structure	31-story plus 2 basement levels, SRC with a flat
		roof
Acquisition price (*2)		3,455 million yen

Outline of Asset Acquired by Exchange (2)

Name of building	Tosabori Daibiru Building
Type of specified asset	Real estate
Location (Residence indication)	2-2-4, Tosabori, Nishi-ku, Osaka city, Osaka
Land (*1)	Type of ownership	Ownership (20% co-ownership)
Land area	4,173.40 sqm (entire land) (*3)
	Type of ownership	Ownership (20% co-ownership)
Building (*1)	Use	Office, Parking and Retail
	Floor area	35,198.77 sqm (entire building)

4

	Date built	July 2009
	Structure	17-story plus 1 basement level S with flat roof
Acquisition price (*2)	4,461 million yen
Outline of Asset Transferred by Exchange
Name of building	Rakuten Crimson House Aoyama
Type of specified asset	Trust beneficial interests in real estate
Location (Residence indication)	2-6-21, Minami Aoyama, Minato-ku, Tokyo
	Type of ownership	Ownership (20% quasi co-ownership of trust
Land (*1)	beneficial interests)
	Land area	3,039.08 sqm (entire land)
	Type of ownership	Ownership (20% quasi co-ownership of trust
	beneficial interests)
	Use	Office, Apartment house, Parking and Retail
Building (*1)	Floor area	20,958.79 sqm (entire building) (*4)
	Date built	May 2003
	Structure	17-story plus 2 basement levels, SRC with a flat
	roof
Transfer price (*2)	8,055 million yen

(*1) "Land area", "use", "floor area", "year built" and "structure" are shown based on the registration, unless otherwise stated.

(*2) The acquisition price and the transfer price represent the prices described in the exchange agreement, excluding related expenses, settlement amount of property tax and city planning tax, consumption tax and local consumption tax.

(*3) ʺLand areaʺ is based on the assumption that the land is divided into lots.

(*4) The building consists of an office building with 17 floors above ground and 2 basement floors (Rakuten Crimson House Aoyama), and a residential building (12 units) with 8 floors above ground and 2 basement floors (Minami Aoyama Garden Court), but is registered as a single building.

GOR's financing activities

In order to procure funds, GOR may borrow funds and issue investment corporation bonds, as well as issue investment units. With regard to interest-bearing liabilities, GOR makes it a principle to borrow long-term loans payable with fixed interest rates from the perspective of managing assets over the long term and reducing the risk of fluctuating interest rates in the future.

During the period under review, GOR borrowed 10,000 million yen on 29 March 2024 to execute repayment of existing loans of 10,500 million yen due for repayment on 29 March 2024 with 500 million yen on hand.

Using the proceeds from the transfer of Otemachi First Square, 6,900 million yen borrowed on 28 April 2023 was repaid on the due date of 29 March 2024.

As of 31 March 2024, unitholders' capital (net amount) was 100,016 million yen, the total number of units issued and outstanding was 1,022,826, the unpaid loan balance was 79,500 million yen, and the total balance of investment corporation bonds issued and outstanding was 18,700 million yen.

GOR's credit rating status as of 31 March 2024:

Rating agencies		Rating descriptions
Japan Credit Rating Agency, Ltd.	Long-term Issuer Rating:	AA-
	Outlook:		Stable
	Bonds:		AA-

Financial results and dividend distributions

GOR recorded operating revenue of 7,161 million yen, operating profit of 3,776 million yen, ordinary profit of 3,361 million yen, and net income of 3,360 million yen for the 41st Period.

Regarding dividends by applying the provisions of Article 65-7 of the Special Provisions for Taxation (Act No. 26 of 1957, as amended, the ʺAct on Special Measures Concerning Taxationʺ), GOR intended to include dividends of earnings in deductible expenses, accumulate part of the gain on sale from transfer of Otemachi First Square (333 million yen) as reserve

5

for reduction entry and to pay out dividends of earnings (3,026 milion yen), which is the maximum integral multiple of the total number of units issued and outstanding (1,022,826 units), out of the amount remaining after deducting provision of reserve for reduction entry from the unappropriated retained earnings. As a result, the Company declared dividends per unit of 2,959 yen. The internal reserve of gain on sale resulted from the application of ʺSpecial Provisions for Taxation in Cases of Replacement of Certain Assetsʺ (Article 65-7 of the Act on Special Measures Concerning Taxation).

Significant Subsequent Events

At the board meeting held on 25 June 2024, GOR resolved the matters regarding acquisition of its own investment units based on the provisions of Article 80-2 of the Investment Trusts Act, which are applied in replacement pursuant to the provisions of Article 80-5, paragraph 2 of the Investment Trusts Act. Furthermore, GOR plans to retire the entirety of own investment units it will have acquired by the end of the six-month period ending September 2024.

1. Reasons behind acquisition of own investment units
   Having considered the level of investment unit price, status of cash on hand, financial status, the market environment and other factors in a comprehensive manner, GOR has determined that increasing capital efficiency and return of profits to unitholders through acquisition and retirement of own investment units should lead to enhanced unitholder value over the medium to long term.
2. Details of acquisition of own investment units

Total number of investment	: 25,000 units (upper limit)
units that may be acquired
Total acquisition price	: 2,000 million yen (upper limit)
Acquisition method	: Market purchase at the Tokyo Stock Exchange based on a discretionary
	transaction contract concluded with a securities company
Acquisition period	: 26 June 2024 to 30 August 2024

6

Financial Highlights

																									(Yen in millions)
				37th Period		38th Period		39th Period		40th Period			41st Period
				(From 1 October 2021		(From 1 April 2022 to		(From 1 October 2022		(From 1 April 2023 to			(From 1 October 2023
				to 31 March 2022)		30 September 2022)		to 31 March 2023)		30 September 2023)			to 31 March 2024)
	Operating
			5,655			5,691			6,664			7,239			7,161
	Revenues
	Property-related	5,655		5,691		5,776		6,139		6,076
	Revenues
	Property-related
			2,461			2,467			2,702			2,794			2,664
	Expenses
	Operating Profit	2,644		2,679		3,341		3,775		3,776
	Ordinary Profit			2,255			2,293			2,924			3,354			3,361
	Net Income	2,254		2,292		2,923		3,353		3,360
	Total Assets			198,819			198,847			209,923			220,925			213,712
	Net Assets	95,208		95,212		103,449		103,878		104,131
	Unitholders'
	Capital		92,401			92,401			100,016			100,016			100,016
	(net amount)
	Depreciation and	872		854		902		961		949
	Amortization
	NOI (Net
	Operating		4,069			4,080			3,976			4,308			4,367
	Income)1
				37th Period			38th Period			39th Period		40th Period			41st Period
				(From 1 October 2021			(From 1 April 2022 to			(From 1 October 2022		(From 1 April 2023 to			(From 1 October 2023
				to 31 March 2022)			30 September 2022)			to 31 March 2023)		30 September 2023)			to 31 March 2024)
	Number of Units
			948,996		units			948,996		units			1,022,826			units			1,022,826		units			1,022,826		units
	issued
	Cash Distributions	2,411	yen	2,426	yen	2,860		yen	3,038		yen		2,959	yen
	per Unit
	Net Assets per
			100,325		yen			100,330		yen			101,141			yen			101,560		yen			101,807		yen
	Unit
	FFO (Funds from	3,298	yen	3,316	yen	2,872		yen	3,145		yen		3,158	yen
	Operation) per Unit2

1. (Property-relatedRevenues－Property-related Expenses)＋Depreciation and Amortization＋Loss on Retirement of Non-current Assets
2. (Net Income＋Depreciation and Amortization＋Loss on Retirement of Non-current Assets＋Other Real Estate-related Amortization＋Loss on Sales of Real Estate Properties－Gain on Sales of Real Estate Properties) / Number of Units issued

7

Investment Unit Price Performance

Market Price on the Tokyo Stock Exchange:

(Unit)																					(Yen)
52,000																					220,000
48,000										Trading Volume										200,000
44,000										Investment Unit Price									180,000
40,000
																				160,000
36,000
																				140,000
32,000
28,000																					120,000
24,000																					100,000
20,000																					80,000
16,000																					60,000
12,000
																				40,000
8,000
																				20,000
4,000
0																					0
Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.	Mar.
2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024

(Note)Prices used for this chart are based on the closing price. GOR implemented a two-for-one split of investment units with 31 March 2014 as the record date and 1 April 2014 as the effective date, and implemented a four-for-one split of investment units with 31 March 2018 as the record date and 1 April 2018 as the effective date. In the above chart, investment unit prices and trading volumes before the ex-rights date are calculated based on the assumption that the splits of investment units were implemented.

Business Structure

Asset Manager

Global Alliance Realty

Co., Ltd.

Asset Management

Investment Corporation

Global One Real Estate

Investment Corp.

Unitholders' Meeting

Board of Directors

Auditor

Dividend

Distributions

Issue of Units

Investment

Tokyo Stock Exchange

Investors

Trade

Investors

Trade

Investors

Property Management

Instruction

Loans / Bonds

Interest Payment

Financial Institutions

and

Bond Holders

Property Manager

Rent Payments	Asset Custody
Investment	Administration Services
Real Estate		Asset Custodian
Office Buildings		Administrator

8

Property Map

1	Otemachi	2	Hirakawacho	3	Rakuten	4	ARK Hills	5	Global One	6	Arca Central
First Square	Mori Tower	Crimson	Sengoku-	Ueno
					House		yama Mori
					Aoyama		Tower

7	Toyosu	8	Shinagawa	9 Yokohama	10	Meiji Yasuda 11	Global One	12	Tosabori
Prime	Seaside West	Plaza Bldg.	Life Insurance	Nagoya	Daibiru
	Square		Tower			Saitama-	Fushimi		Building
						Shintoshin
						Bldg.

13	Shin-Daibiru	14	Meiji Yasuda	15	THE PEAK
	Building		Life Insurance		SAPPORO

Osaka

Midosuji Bldg.

9