GLP J REIT : Status Updates for GLP Maishima II and Amendment of Forecasts Concerning Operating Status and Distribution for the February/August 2022 Fiscal Period

March 9, 2022

For Immediate Release

Real Estate Investment Trust Securities Issuer:

GLP J-REIT

Representative: Yoshiyuki Miura, Executive Director

(Security Code: 3281)

Asset Management Company:

GLP Japan Advisors Inc.

Representative: Yoshiyuki Miura, President

Contact: Shinji Yagiba, CFO

(TEL: [phone])

Status Updates for GLP Maishima II and

Amendment of Forecasts Concerning Operating Status and Distribution for the Fiscal Periods Ending February 28, 2022 and Ending August 31, 2022

GLP J-REIT announces today the obtainment of the report from the construction company of GLP Maishima II, which indicates the building of GLP Maishima II, owned by GLP J-REIT and was suffered by the fire (the "Fire") on November 29, 2021, is no longer usable even repair and maintenance works are carried out going forward. Based on the indication in the report, GLP J-REIT and the tenant, Hitachi Transport System West Japan Co., Ltd., agreed today to terminate the lease agreement at GLP Maishima II as of February 28, 2022. The scope of compensation and the timing of payment of insurance claims in connection with the fire insurance and the business interruption insurance (the "Insurance") for GLP Maishima II will take time to be determined.

In accordance with those events, GLP J-REIT is expected to capture the extraordinary loss for GLP Maishima II and to amend its forecast for the fiscal periods ending February 28, 2022 (from September 1, 2021 to February 28, 2022) and ending August 31, 2022 (from March 1, 2022 to August 31, 2022), announced on December 13, 2021. The details are as follows.

1

1. Amendment of Forecasts Concerning Operating Status and Distribution

1. Amendment to the forecast concerning operating status and distribution for the fiscal period ending February 28, 2022

	Operating	Operating	Ordinary	Net income	Distributions	Distributions
	per unit (yen)	per unit (yen)	Optimal
	revenue	income	income
	(million	(including	(excluding	payable
	(million	(million	(million
	yen)	optimal	optimal	distributions
	yen)	yen)	yen)
		payable	payable	per unit (yen)
					distributions)	distributions)
Previous	24,819	13,788	12,466	12,464	3,069	2,775	294
forecast (A)
Amended	24,658	14,117	12,799	8,380	3,141	1,866	1,275
forecast (B)
Increase or
decrease	(160)	+328	+333	(4,083)	+72	(909)	+981
(B－A)
Rate of
increase or	(0.6%)	+2.4%	+2.7%	(32.8%)	+2.3%	(32.8%)	+333.7%
decrease

1. Amendment to the forecast concerning operating status and distribution for the fiscal period ending August 31, 2022

	Operating	Operating	Ordinary	Net income	Distributions	Distributions
	revenue	income	income	per unit (yen)	per unit (yen)	Optimal
	(million
	(million	(million	(million	(including	(excluding	payable
	yen)
	yen)	yen)	yen)	optimal	optimal	distributions
					payable	payable	per unit (yen)
					distributions)	distributions)
Previous	24,650	13,477	12,121	12,120	2,995	2,699	296
forecast (A)
Amended	24,543	12,930	11,594	16,393	3,017	2,667	350
forecast (B)
Increase or
decrease	(107)	(547)	(526)	+4,273	+22	(32)	+54
(B－A)
Rate of
increase or	(0.4%)	(4.1%)	(4.3%)	+35.3%	+0.7%	(1.2%)	+18.2%
decrease

(Notes)

1. The forecasts are calculated based on the assumptions stated in Attachment 1: "Assumptions Underlying the Forecasts for the Fiscal Periods Ending February 28, 2022 and August 31, 2021." The actual operating revenue, operating income, ordinary income, net income, distributions per unit and optimal payable distributions per unit may vary due to future acquisition or sale of real estate and other assets, trends in the real estate and other markets, additional issuance of new investment units, changes in other circumstances surrounding GLP J-REIT and other factors. In addition, the forecasts are not intended to guarantee the amount of distributions or optimal payable distributions. Especially, the actual amount and coverages of the Insurance is not determined yet today and the insurance amount included in the forecast for the period ending August 31, 2022 may be different from the actual amount. The estimated loss and income are calculated

2

based on the available information as of today, which may be different from the actual amount. The Forecast should not be deemed a commitment or a guarantee of the amount of distributions and optimal payable distributions.

1. GLP J-REIT may revise its forecasts in the event that it expects discrepancies beyond a certain level from the forecast above.
2. Figures are rounded down and percentages are rounded to the nearest decimal place.

2. Reasons for the Amendment

1. Amendment to the forecast concerning operating status and distribution for the fiscal period ending February 28, 2022

Since the Fire burned down the building of GLP Maishima II, GLP J-REIT will record an extraordinary loss from the Fire (the "Fire Loss") of 4,417 million yen for the February 2022 Fiscal Period. The amount of the Fire Loss shall be equivalent to the book value of a trust certificate of tangible assets (i.e. the building and other ancillary equipment/facilities, excluding land) in connection with GLP Maishima II.

As of today, the scope of compensation and the timing of payment of insurance claims in connection with the Insurance covering GLP Maishima II are yet to be determined. Therefore, GLP J-REIT will not record the fire insurance income in the February 2022 Fiscal Period.

On the other hand, according to general J-REIT tax practices, the Fire Loss is not deductible from GLP J-REIT's taxable income until the fire insurance income is recorded. Therefore, for the February 2022 Fiscal Period, a discrepancy between GLP J-REIT's taxation and accounting (the "Tax-Accounting Discrepancy") will occur where GLP J-REIT's taxable income will materially exceed the accounting profit by the amount of the Fire Loss. According to the J-REIT tax code, GLP J-REIT loses its tax-exempt status in case it fails to distribute more than 90% of its taxable income in each fiscal period.

Accordingly, to prevent the loss of GLP J-REIT'stax-exempt status and avoid leakage of unitholders' value, GLP J-REIT is planning to increase the amount of its optimal payable distributions for the February 2022 Fiscal Period by 4,414 million yen which is approximately equivalent to the amount of the Fire Loss. This tax/distribution treatment is called the "Allowance for Temporary Difference Adjustments" ("ATA"), as defined by the J-REIT tax code.

Therefore, the forecasts for the February 2022 Fiscal Period have been amended at this point.

1. Amendment to the forecast concerning operating status and distribution for the fiscal period ending August 31, 2022

GLP J-REIT is expected to record the fire insurance income of 4,800 million yen, the amount of which is based on our best knowledge as of today, as extraordinary income for the August 2022 Fiscal Period. As the amount of the fire insurance income is determined, the Tax-Accounting Discrepancy shall be resolved since the Fire Loss shall be accounted as a deduction from GLP J-REIT's taxable income.

Accordingly, GLP J-REIT is expected to counter-record the full amount of ATA, 4,414 million yen, at the time of distributions payment for the August 2022 Fiscal Period. The subject counter-record of ATA shall reduce the amount of GLP J-REIT's distributions, which is, however, primarily offset by the fire insurance income.

Therefore, the forecasts for the August 2022 Fiscal Period have been amended at this point.

Distributions per unit including optimal payable distributions is expected to be increased from the previous forecast for the fiscal period ending February 28, 2022 and ending August 31, 2022 mainly due to the progress of leasing activity and decrease of asset management fee.

The breakdowns of distributions per unit for the fiscal period ending February 28, 2022 and ending August 31, 2022 are described in the attachment 2 titled "Components of Distributions in the Forecast Assumptions".

*GLP J-REIT website address: https://www.glpjreit.com/en/

3

Attachment 1

Assumptions Underlying the Forecasts for

the Fiscal Periods Ending February 28, 2022 and Ending August 31, 2022

Item	Assumption
Calculation period	・20th Fiscal Period (from September 1, 2021 to February 28, 2022) (181 days)
・21st Fiscal Period (from March 1, 2022 to August 31, 2022) (184 days)
	 GLP J-REIT transferred trust beneficiary interests in GLP Fukusaki in two
	separate transactions on December 28, 2021 and March 1, 2022, from the trust
	beneficiary interests in real estate (86 properties) held by GLP J-REIT as of
	August 31, 2021, to bring the total number of assets held by GLP J-REIT to 85
	properties, after which there will be no change in the assets under management
Portfolio	(acquisition of new property, disposition of property held, etc.) until the end of
assets	August 2022.
	 The trust beneficiary interests in land included in the portfolio for GLP Maishima
	II after November 30, 2021 since the Fire burned down the building of GLP
	Maishima II on November 29, 2021.
	 There is a possibility of fluctuation due to acquisition of new properties other than
	those mentioned above or disposal of properties.
Number of	 It is assumed to be 4,490,369 units, which is the number of investment units
outstanding
issued and outstanding as of today.
investment units
	 The outstanding of interest-bearing liabilities of GLP J-REIT is 346,520 million yen
	as of today.
	 It is assumed that LTV as of the end of the 20th Fiscal Period will be 44.4% (the
Interest-bearing	estimated LTV as of December 13, 2021: 44.1%) and LTV as of the end of the
liabilities	21st Fiscal Period will be 44.3% (the estimated LTV as of December 13, 2021:
	44.3%).
	The following formula is used to compute LTV.
	LTV = (Balance of interest-bearing liabilities / Total assets) x 100 (%)
	 Due to the disposition of trust beneficiary interest in GLP Fukusaki on December
	28, 2021 and March 1, 2022, GLP J-REIT is expected to recognize gains on sales
	of property of 1,511 million yen in the 20th Fiscal Period and 1,518 million yen in
	the 21st Fiscal Period, respectively.
	 No impact is assumed on operating revenue from COVID-19 pandemic because
	of the absence of rent decreases related to the pandemic as of today.
Operating	 The lease of the solar panels installed on the properties employs variable rent
revenue	calculated taking the effect of seasonal factors into consideration. We assumed
	the operating revenue from the solar panels is 418 million yen for the 20th Fiscal
	Period and 634 million yen for the 21st Fiscal Period.
	 Operating revenue is premised on the assumption that there will be no delay or
	failure in the payment of rents by lessees.
	 Rent is assumed to be paid based on the lease agreement for GLP Maishima II
	till February 28, 2022, and no rent payment is assumed in the 21st Fiscal Period.

4

Item	Assumption
	 With respect to taxes on property and equipment (fixed asset tax, city planning
	tax and depreciable asset tax on real estate, etc. hereinafter "property-related
	taxes") held by GLP J-REIT, of the tax amounts assessed and determined, the
	amounts corresponding to the relevant accounting period are recognized as rental
	expenses. However, if property and equipment is newly acquired and adjusted
	amounts of property-related taxes for the year under the same accounting period
	(the "amounts equivalent to property-related taxes") arise between GLP J-REIT
	and the transferor, the relevant adjusted amounts are capitalized as part of the
	acquisition cost of the relevant property. Accordingly, as to four properties (GLP
	Zama, GLP Niiza, GLP Sayama Hidaka I and GLP Rokko IV) acquired in July
	2021, the corresponding property-related taxes, in the amount of 103 million yen,
	are assumed to be accounted for as expenses in the 21st Fiscal Period instead
	of the 20th Fiscal Period. The amount of property-related taxes capitalized as part
	of the acquisition cost is 98 million yen.
	 Taxes and dues are expected to be 1,821 million yen for the 20th Fiscal Period
Operating	and 1,915 million yen for the 21st Fiscal Period.
expense	 Repair and maintenance expenses are expected to be 123 million yen for the 20th
	Fiscal Period and 98 million yen for the 21st Fiscal Period.
	 Property and facility management fees are expected to be 880 million yen for the
	20th Fiscal Period and 866 million yen for the 21st Fiscal Period.
	 Depreciation is expected to be 4,372 million yen for the 20th Fiscal Period and
	4,340 million yen for the 21st Fiscal Period.
	 Of rental expenses, which are the main operating expenses, expenses (excluding
	depreciation) have been calculated based on previous actual figures and reflect
	the variable factors of expenses.
	 Please note that repair costs for each calculation period may differ significantly
	from the forecast amounts because 1) repair costs may be urgently required due
	to damage, etc. to buildings based on factors that are difficult to predict, 2) the
	amount for each fiscal period generally differs significantly, and 3) repair costs are
	not incurred periodically.
	 Depreciation, including incidental expenses and future additional capital
	expenditure, is calculated using the straight-line method.
	 NOI (the amount calculated by deducting rental expenses, excluding depreciation
Net Operating	and loss on retirement of noncurrent assets, from operating revenues excluding
Income (NOI)	gain on sales of property and equipment) is expected to be 19,402 million yen for
	the 20th Fiscal Period and 19,035 million yen for the 21st Fiscal Period.

• The total amount of interest expenses on loans, interest expenses on investment corporation bonds, amortization of investment corporation bonds issuance expenses and other finance-related expenses are expected to be 1,271 million

Non-operating	yen for the 20th Fiscal Period and 1,285 million yen for the 21st Fiscal Period.
Investment corporation bonds issuance expenses are amortized monthly for the
expenses
period from issuance to redemption.

• Investment unit issuance expenses are amortized monthly for three years from occurrence, and amortization expenses are expected to 45 million yen for the 20th Fiscal Period and 45 million yen for the 21st Fiscal Period.

Extraordinary	・Fire insurance income of 4,800 million yen shall be recorded as extraordinary
Income	income for the 21st Fiscal Period.

5