ORIX JREIT : Announces Acquisition of "Cross Residence Iidabashi" and Disposition of "Round-Cross Mita"

For Immediate Release

REIT Issuer:

ORIX JREIT Inc. (TSE: 8954)

Hiroshi Miura

Executive Director

Asset Management Company:

ORIX Asset Management Corporation

Yoshitaka Kamemoto

President and CEO

Inquiries:

Shinji Yamana

Executive Officer and CFO

TEL：[phone]

ORIX JREIT Announces Acquisition of "Cross Residence Iidabashi"

and Disposition of "Round-Cross Mita"

TOKYO, December 24, 2021 - ORIX JREIT Inc. ("OJR")	announced that its asset management company,
ORIX Asset Management Corporation ("OAM"), passed a	resolution on the acquisition and disposition of

properties (hereafter, "the acquisition" and "the d isposition," and referred to collectively as "the e xchange"), as described below.

1．Transaction Summary

1. Transaction party: NIPPON STEEL KOWA REAL ESTATE CO.,LTD.
2. Contract date: December 24, 2021
3. Transaction date: April 1, 2022(Note1)
4. The Acquisition Summary:

		Property name	Cross Residence Iidabashi(Note 2)
		Specified asset category	Real Estate
		Type	Residential Property
		Area	6 Central Tokyo Wards(Note 3)（Shinjuku-ku, Tokyo）
		Acquisition price	6,000 million yen
		Appraisal value	6,600 million yen
		NOI yield(Note 4)	4.0％
		Yield after depreciation(Note 5)	3.2％
5)		The Disposition Summary:
		Property name	Round-Cross Mita
		Specified asset category	Real Estate
		Type	Office
		Area	(Note 3)（	）
			6 Central Tokyo Wards	Minato-ku, Tokyo
		Disposition price	1,800 million yen
		Appraisal value	1,720 million yen
		Book value	1,639 million yen(Note 6,7)
		Estimated gain/loss on disposition	133 million yen(Note 6,7)
6)		Intermediary: None

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Note:

1. Each purchase and sale agreement pertaining to the replacement (hereinafter collectively the "Purchase and Sale Agreement") falls under the category of Forward Commitment as provided in the Comprehensive Guideline for Supervision of Financial Instruments Business Operators, etc. set by the Financial Services Agency since it is a postdated purchase and sale agreement where the settlement and delivery of the property will be conducted later than one month after the conclusion of such agreement.

1. ＜Financial Impact on OJR in case the forward commitment cannot be fulfilled.＞

   In this regard, the Purchase and Sale Agreement stipulates cancellation provisions as follows:

   1. In the event either the seller or the purchaser commits material breach of the Purchase and Sale Agreement (such party is hereinafter the "Breaching Party"), the other party (hereinafter the "Terminating Party") shall set a certain reasonable period and demand the Breaching Party to perform its obligations within such period. If the Breaching Party fails to remedy its breach within such period, the Terminating Party may terminate the Purchase and Sale Agreement. Provided, however, that in case it is evident that it is impossible to remedy its breach within a reasonable period, the Terminating Party may immediately terminate the Purchase and Sale Agreement without notice.
   2. In the event the Purchase and Sale Agreement is terminated due to the reason mentioned in i) above, the Breaching Party shall immediately pay the amount equivalent to 20% of the total amount of acquisition price of the property to be acquired and the disposition price of the property to be disposed to the Terminating Party as a penalty. Even if the damage incurred or born by the Terminating Party exceeds the amount of the penalty, the Terminating Party may not claim an amount in excess of the penalty to the Breaching Party. Even if the amount of such damage is less than the amount of the penalty, the Breaching Party may not claim a reduction of the penalty.
2. The current name of the property is "Livio Maison Iidabashi" as of today. OJR intends to change the name post acquisition.
3. "6 Central Tokyo Wards" refers to Chiyoda, Chuo, Minato, Shinjuku, Shibuya and Shinagawa wards.
4. The "NOI Yield" of Property is calculated by dividing Net Operating Income based on the direct capitalization method indicated in the appraisal report at the time of decision to acquire by the acquisition price. The figures are rounded to the one decimal place.
5. The "Yield after Depreciation" of Property is calculated by dividing (Net Operating Income based on the direct capitalization method indicated in the appraisal reports at the time of decision to acquire - Depreciation expense estimated by OAM) by the acquisition price. The figures are rounded to the one decimal place.
6. Figures are rounded down to the nearest million yen.
7. Book value is an estimate as of transaction date. Estimated gain/loss on transfer is pro forma amount based on the book value and assumed transfer expenses. The amount is subject to change.

2．Purpose of the Exchange

OJR aims to achieve stable growth of unitholder value through careful selection in properties from the perspectives of growth potential, profitability and stability by leveraging our strength, "ORIX Synergy(Note1)," "Direct PM (Note2)" and "Diversified REIT (Note3)".

Under this policy, despite acquiring properties remains to be competitive, OJR decided on this exchange with a 3rd party to avoid missing out on opportunities that can better utilize our own strengths.

Note:

1. 1. The "ORIX Synergy" refers to the cooperative rela tionship between ORIX Corporation and its group companies, and OJR.
   2. The "Direct PM" refers to the supplemental work of property management operations including leasing activities and activities to improve property value by OAM while utilizing the ORIX Synergy.
   3. The "Diversified REIT" refers to real estate inve stment incorporations that invest in various types of property such as offices, retail facilities, residential properties, logistics facilities, hotels and others.
2. Purpose of the Acquisition of "Cross Residence Iidabashi"

Although the occupancy rate has remained in the 80% range due to the impact of COVID-19, from the following reasons we anticipate high competitiveness and stable demand over a medium-tolong-term.

• It is located approximately a 4-minute walk from Iidabashi Station which has access to 5 public transport lines including the JR Chuo/Sobu Line, the Tokyo Metro Yurakucho Line, Tozai Line, Namboku Line and the Toei Oedo Line.
• On the first floor of the property is a convenience store as well as supermarkets, restaurants, hospitals and other facilities in the vicinity of the property making it highly convenient. Additionally, one of prominent neighborhoods in Tokyo named Kagurazaka is within walking distance.
• A scarce large-scale residence recently built (approximately 3 years) with a high-grade entrance, indoor hallway, security system, and interior and equipment. (142 rentable units: 80% for 1K units, 20% for 2 LDK units)

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Map and Railway Route Map

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Photo

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1. Purpose of the Disposition of "Round-Cross Mita"
2. • This property was owned upon listing since 2002 and the building is now in its 31st year since construction and thus additional CAPEX and repair costs will be needed in the future.
   • The location of this property has attracted a certain level of office leasing demand under COVID-19, however a decline in relative competitiveness will remain to be a concern as the building ages further.

3. Summary of Property to be Acquired

Property name	Cross Residence Iidabashi
Specified asset category	Real Estate
Address(Note1)	1-16Shin-ogawamachi,Shinjuku-ku, Tokyo
Public transit access	Approx. 4-minute walk from "Iidabashi" station on J R Chuo/Sobu
line, Toei Oedo line and Tokyo Metro Yurakucho line and others
Land	Registered Area	1,124.79m2
Type of ownership	Full ownership
	Registered usage	Residential, Retail
	Registered completion	January 2019
	date
Building
Type of ownership	Full ownership
	Registered Area	5,594.89m2
	Registered	Reinforced concrete with flat roof, 13 floors
	construction
Earthquake resistance	(Note2)			5％
(with or without earthquake	ＰＭＬ	：
*Based on the report by Sompo Risk Management Inc.
insurance)
Collateral		None
Summary of the Engineering Report
	Reporting Company	Tokio Marine dR Co., Ltd.
	Date of inspection	October 25, 2021
	Total amount of 12
	years from the date of	32 million yen(Note3)
	inspection
	Replacement Cost	1,831 million yen(Note3)
Summary of Rental status as of November 30, 2021
	Number of tenants	1 (Pass through-type master lease agreement)
	Gross rental income	22 million yen per month(Note3)
	excluding parking
	Security deposits	52 million yen(Note3)
	including parking
	Total rent space	3,812.83 m2
	Total rentable space	4,619.88 m2
		November		November		November		November	November
Occupancy rate of end tenants	2017			2018		2019		2020	2021
during past 5 years	-(Not			-(Not		86.0％		97.8％	82.5％
		Completed）		Completed)
Special notes	None
		230 million yen per annum(Note3)
		Estimated net operating income (NOI) represents the estimated
Estimated net operating income	revenue/ expenditure balance under stabilized occupancy excluding
extraordinary	factors that	may occur	after acquisition. The
(NOI)
	precondition is as below; these figures are not what OJR expects for
		the current fiscal year.
		- Occupancy rate:95.8%

Note:

1. The "Address" column shows the residence indication if there is, and if there is none, the building address recorded in the registry. Accordingly, the address may differ from the lot number recorded in the registry.

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