Press Release

17 November 2022

REIT Issuer:

Global One Real Estate Investment Corp.

Securities Code: 8958

Representative: Akio Uchida, Executive Director

Asset Manager:

Global Alliance Realty Co., Ltd.

Representative: Kazunori Yamauchi, President

Contact: Gen Yamazaki

General Manager

REIT Finance Department

Telephone: +81-3-3262-1494

GOR Revises Earnings Forecasts for the Six-Month Period Ending

March 2023 and Announces Earnings Forecasts for the Six-Month Period

Ending September 2023

17 November 2022 - Global One Real Estate Investment Corp. ("GOR") announces today that it has revised its earnings forecasts for the six-month period ending March 2023 (the "39th Period": 1 October 2022 - 31 March 2023) and announces its earnings forecasts for the six-month period ending September 2023 (the "40th Period": 1 Aril 2023 - 30 September 2023).

1. Rationale for revision and announcement

GOR will revise its earnings forecasts as the assumptions of the earnings forecasts for the six-month period ending March 2023 announced in "GOR Revises Earnings Forecasts for the Six-Month Period Ending March 2023" dated 24 October 2022, due to the issuance of new investment units as well as the acquisition and leasing of an asset stated in press releases dated today and titled "GOR Announces Issuance of New Investment Units and Secondary Offering of Investment Units" and "GOR Announces Acquisition and Leasing of a Property (Tomatsu Building)". GOR also announces its new earnings forecasts for the six-month period ending September 2023 as it is disclosed in "Summary of Financial Results for the Six-Month Period Ended September 2022" dated today.

Note: This press release was prepared as a public announcement regarding earnings forecasts for the six-month periods ending March 2023 and September 2023 and was not prepared for the purpose of soliciting investments. Investors are asked to ensure that they read the prospectus for the issuance of new investment units and secondary offering of investment units, as well as the amendments thereto (if any), prepared by GOR before they invest and that they make decisions on investment at their or own discretion and responsibility.

2. Revision of Earnings Forecasts for the Six-Month Period Ending March 2023

Operating

Operating

Ordinary

Net

Dividend

Dividend in

excess of profit

revenue

profit

profit

income

per unit

per unit

Previous forecast

6,641

3,419

3,015

3,014

(A)

million

million

million

million

2,860 yen

－

(24 October 2022)

yen

yen

yen

yen

Revised forecast

6,641

3,418

2,994

2,993

million

million

million

million

2,860 yen

－

(B)

yen

yen

yen

yen

Amount of

-1

-20

-20

change

－

million

million

million

－

－

(C)=(B-A)

yen

yen

yen

Change

－

-0.1 %

-0.7 %

-0.7 %

－

－

(C/A×100)

(Ref.) Forecasted net income per unit: 2,926 yen

The estimated number of units issued at the end of the period: 1,022,826 units

Note:

  1. Dividend per unit is calculated on the premise that the amount remaining after deducting the reserve for reduction entry of 68 million yen for the six-month period ending March 2023 from net income will be distributed.
  2. The estimated number of units issued at the end of the period is 1,022,826 units, which is the number of units issued as of today, 948,996 units, plus 70,330 units that are going to be issued through a public offering and 3,500 units (upper limit) that are going to be issued through a third-party allotment pursuant to a decision made at the board of directors held today. It is also assumed that the maximum number of new units to be issued through the third-party allotment will be 3,500 units.
  3. The forecasts contained in this document are "current" as of the date of this release, based on the assumptions described in the Exhibit that follows. Actual results may differ (i.e. operating revenue, operating profit, ordinary profit, net income, dividend per unit) depending on various factors. The above forecasts do not guarantee the amount of future dividends.
  4. Should a disparity exceeding a certain percentage arise in the forecasts, revisions may be released.
  5. Amounts of less than one million yen are rounded down to the nearest million yen.

Note: This press release was prepared as a public announcement regarding earnings forecasts for the six-month periods ending March 2023 and September 2023 and was not prepared for the purpose of soliciting investments. Investors are asked to ensure that they read the prospectus for the issuance of new investment units and secondary offering of investment units, as well as the amendments thereto (if any), prepared by GOR before they invest and that they make decisions on investment at their or own discretion and responsibility.

3. Earnings forecasts for the six-month period ending September 2023

Operating

Operating

Ordinary

Net

Dividend

Dividend in

excess of profit

revenue

profit

profit

income

per unit

per unit

7,211

3,887

3,452

3,451

40th Period

million

million

million

million

3,038 yen

－

yen

yen

yen

yen

(Ref.) Forecasted net income per unit: 3,374 yen

The estimated number of units issued at the end of the period: 1,022,826 units

Notes:

  1. Dividend per unit is calculated on the premise that the amount remaining after deducting the reserve for reduction entry of 343 million yen for the six-month period ending September 2023 from net income will be distributed.
  2. The estimated number of units issued at the end of the period is 1,022,826 units, which is the number of units issued as of today, 948,996 units, plus 70,330 units that are going to be issued through a public offering and 3,500 units (upper limit) that are going to be issued through a third-party allotment pursuant to a decision made at the board of directors held today. It is also assumed that the maximum number of new units to be issued through the third-party allotment will be 3,500 units.

3. The forecasts contained in this document are "current" as of the date of this release, based on the assumptions described in the Exhibit that follows. Actual results may differ (i.e. operating revenue, operating profit, ordinary profit, net income, dividend per unit) depending on various factors. The above forecasts do not guarantee the amount of future dividends.

  1. Should a disparity exceeding a certain percentage arise in the forecasts, revisions may be released.
  2. Amounts of less than one million yen are rounded down to the nearest million yen.

4. (Reference) Earnings for the six-month period ended September 2022

The earnings for the six-month period ended September 2022 described in the "Summary of Financial Results for the Six-Month Period ended September 2022" dated today are as follows.

Operating

Operating

Ordinary

Net

Dividend

Dividend in

excess of profit

revenue

profit

profit

income

per unit

per unit

5,691

2,679

2,293

2,292

38th Period

million

million

million

million

2,426 yen

－

yen

yen

yen

yen

(Ref.) Net income per unit: 2,415 yen

The number of units issued at the end of the period: 948,996

Notes: Dividend for the six‐month period ended September 2022 is calculated by adding reversal of reserve for reduction entry (9 million yen) to unappropriated retained earnings, and dividing the amount by the number of investment units issued.

Note: This press release was prepared as a public announcement regarding earnings forecasts for the six-month periods ending March 2023 and September 2023 and was not prepared for the purpose of soliciting investments. Investors are asked to ensure that they read the prospectus for the issuance of new investment units and secondary offering of investment units, as well as the amendments thereto (if any), prepared by GOR before they invest and that they make decisions on investment at their or own discretion and responsibility.

Exhibit

Assumptions underlying earnings forecasts for the six-month period ending March 2023 (the 39th Period) and the six-month period ending September 2023 (the 40th Period)

Items

Assumptions

Accounting period

The 39th Period:

1 October 2022 - 31 March 2023 (182 days)

The 40th Period:

1 April 2023 - 30 September 2023 (183 days)

Operating assets

• Assumes that GOR will acquire THE PEAK SAPPORO on 7

December 2022 and Tomatsu Building on 28 April 2023 in

addition to the 11 properties it owns as of 30 September

2022, and that it will transfer 25% and 30% of Otemachi

First Square on 6 December 2022 and 25 September 2023,

respectively, without any additional acquisitions or sales

until the end of the six-month period ending 30 September

2023.

• Notwithstanding the above assumption, estimates may

change in the event of a change in the portfolio.

Number of units issued

• The estimated number of units issued at the end of the

period is 1,022,826 units, which is the number of units

issued as of 30 September 2022, 948,996 units, plus 70,330

units that is issued through a public offering and upper

limit of 3,500 new units that is issued through a third-party

allotment pursuant to a decision made at the board of

directors held on 17 November 2022.

• Dividend per unit is calculated based on the above number

of units issued, or 1,022,826.

Operating revenue

• Rental revenue takes into account various factors (e.g.

tenant turnover, market trends, and competition in the

neighborhood) and assumes that there will be no arrears or

nonpayment of rent by tenants.

• Rental revenue is expected to increase on balance with the

acquisition of THE PEAK SAPPORO on 7 December 2022 as

well as Tomatsu Building on 28 April 2023 and the transfer

of 25% and 30% of Otemachi First Square on 6 December

2022 and 25 September 2023.

• Among the operating revenue for the 39th Period and 40th

Period, approximately 881 million yen and approximately

1,093 million yen of gain on sale of real estate is expected

respectively from the transfer of Otemachi First Square.

Operating expenses

• Property-related expenses, excluding depreciation and

amortization expenses, are calculated reflecting variable

factors based on historical data.

• Because the amounts of property tax and city planning tax

already paid by the seller are included in the acquisition

cost of THE PEAK SAPPORO, they will not be recorded as

operating expenses in the 39th Period. However, property

Note: This press release was prepared as a public announcement regarding earnings forecasts for the six-month periods ending March 2023 and September 2023 and was not prepared for the purpose of soliciting investments. Investors are asked to ensure that they read the prospectus for the issuance of new investment units and secondary offering of investment units, as well as the amendments thereto (if any), prepared by GOR before they invest and that they make decisions on investment at their or own discretion and responsibility.

Items

Assumptions

tax and city planning tax for this property due in and after

the 40th Period (approximately 37 million yen in fiscal 2022,

i.e. approximately 18 million yen for six months, excluding

depreciated asset tax) will be recorded as operating

expenses in the 40th Period and after.

•

Because the amounts of property tax and city planning tax

already paid by the seller are included in the acquisition

cost of Tomatsu Building, they will not be recorded as

operating expenses in the 40th Period. However, property

tax and city planning tax for this property due in and after

the 42nd Period (approximately 74 million yen in fiscal

2022, i.e. approximately 37 million yen for six months,

excluding depreciated asset tax) will be recorded as

operating expenses in the 42nd Period and after.

•

Property management fees relating to leasing activities are

estimated at approximately 606 million yen for the 39th

Period and approximately 593 million yen for the 40th

Period and tax and public dues at approximately 528

million yen for the 39th Period and approximately 561

million yen for the 40th Period.

•

Repair and maintenance expenses are estimated at

approximately 134 million yen for the 39th Period and

approximately 88 million yen for the 40th Period. However,

unforeseen emergency repairs may become necessary

depending on various factors, and actual repair expenses

may exceed the estimates.

•

Depreciation and amortization expenses, estimated at

approximately 897 million yen for the 39th Period and

approximately 955 million yen for 40th Period is calculated

on a straight-line basis over the holding period.

•

Operating expenses other than property-related expenses

(e.g. management fees, asset custody fees, and agency fees)

are estimated at approximately 635 million yen for the 39th

Period and approximately 679 million yen for the 40th

Period.

Non-operating expenses

•

The total non-operating expenses (e.g. interest expenses)

are estimated at approximately 423 million yen for the 39th

Period and approximately 435 million yen for the 40th

Period. Approximately 31 million yen of investment unit

issuance costs are expected to be recorded in lump sum as

non-operating expenses for the 39th Period.

Borrowings and bonds

•

As of 30 September 2022, GOR has a total of 75,500 million

yen in outstanding loans. It is assumed that loans due

during the 39th Period and 40th Period will be fully

refinanced.

•

Assumes that GOR will borrow 2,400 million yen in

December 2022 from a qualified institutional investor,

MUFG Bank, Ltd., as defined in Article 2, Paragraph 3, Item

1 of the Financial Instruments and Exchange Act.

Concerning details of this borrowing, please see "GOR

Note: This press release was prepared as a public announcement regarding earnings forecasts for the six-month periods ending March 2023 and September 2023 and was not prepared for the purpose of soliciting investments. Investors are asked to ensure that they read the prospectus for the issuance of new investment units and secondary offering of investment units, as well as the amendments thereto (if any), prepared by GOR before they invest and that they make decisions on investment at their or own discretion and responsibility.

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Global One Real Estate Investment Corporation published this content on 17 November 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 17 November 2022 07:48:06 UTC.