Dear unitholders,

We would like to express our sincere gratitude to our unitholders for your continued support of SANKEI REAL ESTATE, Inc. Since listing on the Real Estate Investment Trust Securities Market of Tokyo Stock Exchange (J-REIT Market) on March 12, 2019, SANKEI REAL ESTATE, Inc. (TSE code: 2972) has faced various changes in the management environment. On October 16, 2023, we partially amended the asset management guidelines and converted SANKEI REAL ESTATE, Inc. from an office building-focused REIT to a diversified REIT. We want to express our sincere gratitude to our unitholders and other stakeholders as the steps we have taken up to this point were only possible with your support and understanding.

For diversification, in terms of geographic diversification, SANKEI REAL ESTATE sets Greater Tokyo, Greater Osaka and Greater Nagoya, as well as cities designated by government ordinance, core cities and major regional cities as its investment target areas. While we invest primarily in office buildings, for diversification of asset type, we also invest a certain percentage in hotels, logistics facilities and residential facilities. In so doing, we aim to become a REIT with a diversified portfolio that withstands market cycles and is equipped with both upside potential and protection against downsides, capable of sustainable growth.

Based on this investment policy, in terms of external growth, SANKEI REAL ESTATE has established an asset recycling business model with its sponsor, the Sankei Building Group, which undertakes “Urban Development, Hotels & Resorts” operations of media conglomerate Fuji Media Holdings, Inc. The business model allows SANKEI REAL ESTATE to secure the pipeline of real estate properties and other assets developed and owned by the sponsor and to leverage it to expand the scale of our assets under management. In terms of internal growth, we aim to maintain and improve earnings of assets under management over the medium to long term by fully leveraging the sponsor’s development, operation and management.

SANKEI REAL ESTATE aims to maximize unitholder value over the medium to long term by growing with the J-REIT market as a public entity of society that makes every person happy under its philosophy of “Making people, cities & society happy” through sponsor support.

We look forward to the support and encouragement from our unitholders and many other stakeholders as long-lasting partners of SANKEI REAL ESTATE.