It is our sincere hope that this message finds all our unitholders well and prosperous.　

We would also like to extend our heartfelt sympathies to everyone affected by the earthquake with its epicenter in the Kumamoto region of Kumamoto Prefecture and the torrential rains in Chiba Prefecture.

We are pleased to announce that ESCON JAPAN REIT Investment Corporation (hereinafter, “ESCON REIT”) has successfully completed its 19th fiscal period (February 1, 2026 to July 31, 2026). We would like to express our sincere gratitude to all our unitholders for their continued support, which has made this achievement possible.

During the fiscal period, the Japanese economy remained resilient, supported by consumer spending driven by wage increases and by solid capital investment. This was despite uncertainties such as changes in the interest-rate environment caused by the normalization of monetary policy by the Bank of Japan and sharp rises in crude oil prices resulting from the situation in the Middle East. On the other hand, inflationary pressures are mounting due to the depreciation of the yen and rising prices of energy and raw materials. Under these circumstances, ESCON REIT pursued an asset replacement strategy designed to strengthen its resistance to inflation while maintaining a stable earnings foundation. In terms of property acquisition, we acquired “SONO Moon Nagoya” (ESCON REIT’s second hotel asset), which is expected to generate higher revenues through variable rents linked to gross operating profit (GOP) amid robust accommodation demand. With regard to property divestment, we sold four commercial facility leasehold land properties that we determined had reached maturity in terms of earnings. For existing properties, we continued to pursue appropriate rent increases and cost reductions.

As a result of these efforts, the distribution per unit for the fiscal period under review reached 3,585 yen, exceeding the forecast of 3,530 yen.

Going forward, ESCON REIT will continue to steadily implement initiatives aimed at achieving sustainable growth. In terms of responses to natural disasters, we will inspect the disaster-prevention functions of individual properties and implement necessary preventive measures to enhance the disaster preparedness of our overall portfolio. At the same time, ESCON REIT will aim to build a portfolio that is resilient to changes in the external environment and maximize unitholder value with the strong cooperation of its sponsor, ES-CON JAPAN Ltd., and its support companies, Chubu Electric Power Co., Inc. and Chuden Real Estate Co., Inc.

We would appreciate the continued support and encouragement from our unitholders and other stakeholders.