To Our Unitholders

We would like to express our sincere gratitude for your continued excellent support.

We are pleased to report on the management status of One REIT for the 23rd fiscal period ended February 2025.

In the office building leasing market during the fiscal period under review, against the backdrop of the strong corporate earnings and the recovery of office attendance rate, demand for expansion of leased area by existing tenants, relocation for expansion, etc. gradually improved. The vacancy rates in central Tokyo declined moderately, and rents remained solid.

In such an environment, One REIT conducted leasing activities focused on maintenance and improvement of occupancy rates based on market trends, such as flexible setting of new advertised rents, as well as focused on the realization of rent increases in rent revisions. In addition to these efforts, One REIT endeavored to enhance its leasing business revenue through the realization of optimum property management costs that take into account tenant needs and the characteristics of each property.

As a result, One REIT’s assets as of the end of the fiscal period under review comprised a portfolio totaling 32 properties (total acquisition price: 123,158 million yen; silent partnership equity interest is not included), a total leasable area of 171,706.90 m², and an end-of-period occupancy rate of 98.4%.

Concerning distributions, One REIT attempts to include the maximum amount of cash distribution of earnings in deductible expense. In the 23rd fiscal period, One REIT decided to distribute roughly the entire amount of unappropriated retained earnings after deducting the unappropriated earnings internally reserved in or before the previous fiscal period with accrual of gain on sale of real estate, etc. As a result, One REIT declared distribution per investment unit of 7,217 yen.

We will aim to maximize unitholder value through continued full utilization of sponsor support and pursuit of “continuous growth of distributions” and “disciplined external growth while considering the portfolio and financial structure.”

We appreciate your continued support and patronage.