Message from Executive Director

To Our Unitholders,

We would like to express our sincere appreciation for your continued support of One REIT, Inc.

We are pleased to report on the operating results of One REIT, Inc. for the 26th fiscal period ended August 2026.

In the office leasing market, tenant demand remained firm, supported by office space reviews associated with new employee hiring, office expansions driven by business growth, and relocations aimed at improving location quality. Meanwhile, new supply remained limited due in part to rising construction costs. As vacancy rates continued to decline, office rents are expected to remain on an upward trend.

The hotel market was supported by domestic leisure demand as well as inbound tourism, particularly from South Korea, Taiwan, Europe, North America, and Australia. On the other hand, regional disparities in hotel performance were observed as a result of a decline in Chinese visitors, the absence of the extraordinary demand generated by Expo 2025 Osaka, Kansai, and the impacts of natural disasters such as typhoons and earthquakes, as well as extreme summer heat.

As part of its asset replacement strategy aimed at improving portfolio quality, the Investment Corporation sold a 10.0% quasi-co-ownership interest in ONEST Kyoto Karasuma Square (disposition price: ¥500 million) on March 13, 2026, and a 20.0% quasi-co-ownership interest in Nagoya Fushimi Square Building (disposition price: ¥1,602 million) on July 30, 2026.

In addition, on March 19, 2026, the Investment Corporation acquired six properties for a total acquisition price of ¥29,946 million: ONEST Iidabashi Square, Quintessa Hotel Sapporo Susukino 63 Relax & Spa, Quintessa Hotel Kagoshima Tenmonkan Relax & Sleep, Quintessa Hotel Fukuoka Hakata Relax & Sleep, THE HEDISTAR HOTEL NARITA, and DoubleTree by Hilton Naha Shuri Castle.

Through these acquisitions and dispositions, the Investment Corporation further enhanced portfolio quality, strengthened the stability of its earnings base, and secured a foundation for future growth.

Recognizing the importance of environmental, social, and governance (ESG) considerations in real estate investment management, the Investment Corporation continues to pursue initiatives aimed at reducing environmental impacts and contributing to the realization of a sustainable society as part of its corporate social responsibility efforts. During the fiscal period, Daido Life Mito Building received a CASBEE for Real Estate certification with an S Rank rating, while ONEST Kinshicho Square and Comfort Inn Nagoya Sakae each received an A Rank rating.

As a result, as of the end of the fiscal period, the Investment Corporation's portfolio consisted of 34 properties with a total acquisition price of ¥151,201 million and total leasable area of 201,048.61 square meters. The occupancy rate stood at 98.7%.

Going forward, the Investment Corporation will continue to leverage the support of its sponsor to the fullest extent possible and pursue both sustainable growth in distributions and disciplined external growth with due consideration for portfolio quality and financial soundness, with the aim of maximizing unitholder value.

We sincerely appreciate the continued support and encouragement of our unitholders.