Activia Properties Inc.Executive DirectorManabu Kamikawara

　Thank you very much for your continued support of Activia Properties Inc (API).
　Recently we closed all accounts for the period from December 1, 2025 to May 31, 2026. We owe this achievement to your understanding and continued support for which we wish to extend our deep appreciation.

　Turning to the management of API’s assets, in the office sector, rent increase rates have remained high in central Tokyo, particularly in the Greater Shibuya area, driving robust internal growth that is outperforming the market. In the retail sector, we are steadily enhancing earnings with high investment efficiency and building a foundation for future internal growth through strategic leasing processes, value enhancement initiatives involving changes in property use, and other measures. In the hotel sector, we are pursuing further earnings upside by changing operators and replacing assets with properties that incorporate variable rent structures to capture strong inbound demand.

　As a result of the above-mentioned management, operating revenue, operating profit, and profit for the period under review were ¥17,732 million, ¥9,740 million and ¥8,456 million, respectively, for the period ended May 2026. Distributions per investment unit were ¥3,204.
　API's portfolio at the end of the period under review was 46 properties with the total acquisition price of ¥542.1 billion.

　API has included ESG (environment, social, and governance) perspectives into the long-term management strategy to realize a sustainable society. During the current fiscal period, the asset management company revised its material issues and newly identified “Thorough Governance,” “Initiatives to Address Climate Change,” “Human Capital Development and Wellbeing,” and “Co-creation with Stakeholders” as material issues.
　On the environmental front, having achieved 100% use of electricity from renewable energy sources we established new CO2 emission reduction targets for 2030 covering Scopes 1 through 3. We continue to pursue practical initiatives toward a decarbonized society while setting ourselves increasingly ambitious targets.

　For the fiscal period ending November 2026 (FP30) and beyond, we will focus on sustained enhancement of unitholder value through EPU growth by promoting internal growth measures aimed at increasing portfolio earnings, as well as external growth measures such as asset replacement.

　We would be most grateful for your continued support and encouragement. Thank you.