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Asset Manager: Securities Code: 3292 http://www.aeon-jreit.co.jp/en/ 2 nd Fiscal Period Ended January 2014 Materials for Investor Meeting March 18, 2014 AEON Reit Management Co., Ltd. AEON REIT Investment Corporation

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Page 1: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Asset Manager: Securities Code: 3292

http://www.aeon-jreit.co.jp/en/

2nd Fiscal Period Ended January 2014

Materials for Investor Meeting

March 18, 2014

AEON Reit Management Co., Ltd.

AEON REIT Investment Corporation

Page 2: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Table of Contents

2

I. Overview of Operations in 2nd Fiscal Period ended January 31, 2014

1. Summary of Financial Results for 2nd Fiscal Period Ended January 31, 2014 ――――― P. 4

2. Topic 1: Overview of Initial Public Offering ――――――――――――――――――― P. 5

3. Topic 2: Investment Unit Price Performance and Market Reaction ――――――――― P. 6

4. Topic 3: Portfolio Data ――――――――――――――――――――――――――――― P. 7

5. Performance of Properties in Portfolio (1) ―――――――――――――――――――― P. 8

6. Performance of Properties in Portfolio (2) ―――――――――――――――――――― P. 9

7. Performance of Properties in Portfolio (3) ―――――――――――――――――――― P. 10

8. Environmental Initiatives ――――――――――――――――――――――――――― P. 11

9. Financial Highlights ――――――――――――――――――――――――――――― P. 12

10. FY2014 External Environment and Industry Trends ――――――――――――――――― P. 13

11. Forecast for 3rd Fiscal Period Ending July 31, 2014 and 4th Fiscal Period Ending January 31, 2015 ― P. 14

12. Roadmap for Growth ―――――――――――――――――――――――――――――― P. 15

II. AEON REIT’s Investment Strategy

1. Basic Philosophy ――――――――――――――――――――――――――――――― P. 17

2. Basic Policy ――――――――――――――――――――――――――――――――― P. 18

3. A Highly Stable Portfolio Centered on the AEON Group’s Large-Scale Retail Properties ―― P. 19

4. A Growth Strategy that Leverages the AEON Group’s Collective Capabilities ―――――― P. 20

5. Strategic Cash Management and a Stable Financial Position ―――――――――――― P. 21

6. Framework for Maximizing Unitholder Value ―――――――――――――――――――― P. 22

Appendix ――――――――――――――――――――――――――― P. 23

Page 3: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

I. Overview of Operations in 2nd

Fiscal Period Ended January

31, 2014

Page 4: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Summary of Financial Results for 2nd Fiscal Period Ended January 31, 2014

4

Results for 2nd Fiscal Period and Variance from Forecast

Reference Information

2nd Period Results 2nd Period Forecast 1 Difference Main Reasons for Difference

Operating Revenues 2,773 2,773 - -

Operating Income 1,201 1,155 +46 +47 Decrease in repair expenses

-1 Increase/decrease in other costs

Ordinary Income 761 414 +347

+194 Change in accounting treatment of IPO-related

expenses

+70 Decrease in IPO-related expenses

+35 Decrease in borrowing costs

Net Income 759 413 +346 (same as above)

Distributions per Unit

(yen) 686 322 +364 -

Total Assets ¥171,644 million NOI from Leasing Activities ¥2,445 million

Interest-bearing Debt ¥67,000 million Units Outstanding 950,000

Security Deposits, etc. ¥7,411 million Net Assets per Unit ¥102,108

LTV (LTV excluding security deposits) 43.4% (39.0%) Unit Price (March 14, 2014 closing price)

¥123,100

Note 1: November 22, 2013 news release, “Notice Concerning Forecasts for the Fiscal Periods Ending January 31, 2014 and July 31, 2014”

(Millions of yen except per unit amounts)

Page 5: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Topic 1:Overview of Initial Public Offering

Offering Structure: Global offering

Japanese public offering +

international offering (Reg S)

Listing Market: Tokyo Stock Exchange

Listing Date November 22, 2013

Total Number of

Units Offered:

945,000 units

Japanese public offering 739,350

International offering 160,650

Secondary offering

through over-allotment 45,000

Issue Price: ¥105,000

Total Value of

Offering: ¥99.2 billion

Domestic/Overseas

Ratio: 83% domestic:17% overseas

5

Offering Summary

Page 6: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

1,400

1,450

1,500

1,550

1,600

1,650

100,000

110,000

120,000

130,000

140,000

150,000

11/22 11/27 12/2 12/5 12/10 12/13 12/18 12/24 12/27 1/7 1/10 1/16 1/21 1/24 1/29 2/3 2/6 2/12 2/17 2/20 2/25 2/28 3/5 3/10 3/13

イオンリート投資口価格(左軸) 東証REIT指数(右軸)

Topic 2:Investment Unit Price Performance and Market Reaction

1,400

1,450

1,500

1,550

1,600

1,650

100,000

110,000

120,000

130,000

140,000

150,000

11/22 11/27 12/2 12/5 12/10 12/13 12/18 12/24 12/27 1/7 1/10 1/16 1/21 1/24 1/29 2/3 2/6 2/12 2/17

イオンリート投資口価格(左軸) 東証REIT指数(右軸)

(円) (pt)AEON REIT Investment Corporation (ARI) made a solid debut on the J-REIT market on November 22, opening at 115,000 yen, 9.52%

above the issue price of 105,000 yen.

The AEON Group is the leading retail group in Japan in terms of operating revenue, and plans to leverage its experience in its home

market to develop shopping centers in Asia. The group hopes to use its management prowess to become Asia’s number-one regional

retailer. To reach that goal, it is taking on new initiatives, including the launch of the first J-REIT to include an overseas asset in its portfolio.

“We wanted to create a REIT that could grow with the AEON Group,” said a source at ARI.

ARI is the fourth J-REIT IPO since the start of FY 2013. Some investors and underwriters had voiced concerns about the impact on the

rebounding J-REIT market, noting that some IPOs were trading below their opening prices. But the reaction from one investment trust

representative was that AEON REIT is “an IPO that will stimulate the J-REIT market, like we saw with the listings of GLP J-REIT and

Nippon Prologis REIT, partly because of its scale.” It remains to be seen whether this IPO can lead to expansion of the J-REIT market

overall.

(Abstract of Thomson Reuters DealWatch article by Miho Ozawa)

Equity Market Pointer: AEON REIT, a New Retail Industry J-REIT, Makes Steady Market Debut (DealWatch 11/22/2013)

Added to TSE REIT Index

(Added on 12/30 at 12/27

closing price)

6

AEON REIT Investment Unit Price and TSE REIT Index

Market Reaction

AEON REIT investment unit price (left scale) TSE REIT Index (right scale)

Page 7: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

イオンレイクタウンmori

イオンモール倉敷

イオンモール水戸内原

イオンモール熊本

イオンモール直方

イオン相模原

イオンモール鈴鹿

イオンモール綾川

イオンモール日吉津

イオンモール加西北条

その他

SRSC

RSC

北海道・東北

関東

東海・北陸・中部

近畿

中国・四国

九州

Topic 3:Portfolio Data

7

Portfolio properties 16

Total acquisition cost2 ¥158.3bn

Book value at end of period ¥158.4bn

Appraisal value4 ¥166.9bn

Average building age1 10.0 years

Average remaining lease term3 19.8 years

Properties with master

lease contracts 100%

Unrealized profits (Appraisal value – book value

at end of period)

+¥8.5bn

Portfolio Highlights

Distribution of Portfolio

Notes:

1. Calculated as the weighted average age of the building based on the purchase price as of January 31, 2014

2. The purchase price is the amount paid (the purchase price in the sales contract) excluding miscellaneous costs (brokerage commissions, taxes and dues, etc.) required to purchase the property.

3. Remaining lease term as of January 31, 2014

4. Appraisal value as of January 31, 2014

7.6%

38.8%

11.3%

4.6%

21.7%

16.0%

13.4%

11.3%

10.4%

8.9%

7.1%

6.5%

6.1%

5.5%

4.9%

4.6%

21.4%

Property Area Investment

Hokkaido/Tohoku

Kanto

Tokai/Hokuriku/Chubu

Kinki

Chugoku/Shikoku

Kyushu

AEON LakeTown mori

AEON MALL Kurashiki

AEON MALLMitouchihara

AEON MALL Kumamoto

Kumamoto AEON MALL Nogata

AEON Sagamihara

AEON MALL Suzuka

AEON MALL Ayagawa

AEON MALL Hiezu

AEON MALL Kasai-Hojo

Others

Page 8: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Performance of Properties in Portfolio (1)

The properties in our portfolio have stable sales and occupancy rates

Actual End-Tenant Occupancy Rate2 in 16-property Portfolio

YoY Sales Comparison1 of End Tenants in 16-property Portfolio

8

Notes:

1. The total amount of sales of end tenants of the 16 portfolio properties for the four periods of March-May, June-August, September-November and December-February each year as a percentage of sales for the

same periods of the previous year

2. The percentage of total rentable area in the 16 portfolio properties that is actually occupied by end tenants (including area in which end tenants have committed to opening stores)

3. Year-over-year comparisons of sales and the actual occupancy rates shown above are data based on interviews of master lease companies. The percentage of properties with master lease contracts is 100%.

4. Year-over-year comparisions of sales and the actual occupancy rates shown above have been rounded to the nearest tenth of a percent.

2011

Mar-May

2011

June-Aug.

2011

Sept-Nov. 2011-2012

Dec-Feb. 2012

Mar-May

2012

June-Aug. 2012

Sept-Nov.

2012-2013

Dec-Feb.

2013

Mar-May

2013

June-Aug. 2013

Sept-Nov.

2011

May

2011

August

2011

November

2012

February 2012

May

2012

August

2012

November

2013

February

2013

May

2013

August

2013

November

Page 9: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Performance of Properties in Portfolio (2)

Notes:

1. Rental revenues and other revenues received by the master lease company from end tenants

2. The rental revenues figures above are data based on interviews of master lease companies.

3. The rental revenues figures above have been rounded to the nearest tenth of a percent.

Rental Revenues at Master Lease Companies1 of 16 Properties in Portfolio

9

March 2011-Feb. 2012

(12-month period) ¥42.9 billion

(YoY) 102.3%

March 2012-Feb. 2013

(12-month period) ¥44.7billion

(YoY) 104.3%

March-Nov. 2013

(9-month period) ¥33.6billion

(YoY) 103.1%

97 106 107

118 109 110 107

121 112 113 110

95.5% 102.9% 105.4% 105.1%

112.9%

103.1% 99.4%

102.7% 102.5% 103.2% 103.6%

0%

20%

40%

60%

80%

100%

120%

0

20

40

60

80

100

120

140

160

180

200

平成23年

3~5月

平成23年

6~8月

平成23年

9~11月

平成23年

12~翌2月

平成24年

3~5月

平成24年

6~8月

平成24年

9~11月

平成24年

12~翌2月

平成25年

3~5月

平成25年

6~8月

平成25年

9~11月

(Billions of yen) 賃貸収益実績(億円) 前年対比指数 Rental revenues (billions of yen) Indexed YoY comparison

2011

June-Aug.

2011

Mar-May

2011

Sept-Nov.

2011-2012

Dec-Feb.

2012

Mar-May

2012

June-Aug. 2012

Sept-Nov.

2012-2013

Dec-Feb. 2013

Mar-May

2013

June-Aug.

2013

Sept-Nov.

Page 10: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Notes:

1. Sales of each property for June-November 2013 are expressed as a percentage of sales for the same period in 2012.

2. The year-over-year sales index above presents data based on interviews of master lease companies.

3. The figures in the year-over-year sales index above have been rounded to the nearest tenth of a percent.

Distribution of Indexed Sales Growth of End Tenants by Property1

Percentage of properties with sales index of 100% or higher: 62.5%

Average of 16

properties in ARI

portfolio

102.5%

AEON LakeTown mori/kaze

AEON MALL Mitouchihara

AEON MALL Meiwa

Expanded area

Sales vs.

same period

of previous

year

<90%

90%

~95%

95%

~100%

100%

~105%

105%

~110% >110%

% of total 0.0% 0.0% 37.5% 43.8% 12.5% 6.3%

Representative Portfolio Properties

10

Performance of Properties in Portfolio (3)

With approximately 550 tenants and the

largest total floor space in Japan, mori and

kaze are the AEON Group’s flagship shopping

centers and its biggest sales generators.

In April 2011, LakeTown Outlet (which is not

part of our portfolio) opened on the lot

between the two shopping centers, and sales

at both mori and kaze have risen steadily.

A floor area expansion in December 2012

brought in new fashion stores offering quality

and trendy apparel. The expansion increased

the total number of stores to 190 and the

length of the property to 330 meters, and

further expanded the commercial area. This

mall has a dominant presence as one of the

largest shopping centers in the north Kanto

region, and is the only one in Mito City with

floor area on the scale of 80,000 m2.

This property reopened on November 1,

2013, after the largest-scale renovation since

its original opening.

With 28 new tenant shops and the renovation

of 48 shops (55% of the total including

relocated and remodeled shops), the mall has

been revitalized with appealing and

competitive tenants, primarily restaurants and

household goods stores.

0 0

6

7

2

1

0

1

2

3

4

5

6

7

8

90%未満 90%~95% 95%~100% 100%~105% 105%~110% 110%以上

Sales Trends of Individual Properties for

June-November 2013

Page 11: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

AEON Mall Kasai-Hojo received “Gold” certification in recognition of its environmental and other sustainability initiatives.

SMBC Sustainable Building Assessment Loan, which is formulated according to the proprietary criteria originally prepared by Sumitomo Mitsui Banking Corporation and CSR Design and

Landscape, is a financing product based on the assessment of buildings owned or constructed by companies for such factors as 1) the environmental performance on energy, water and

materials and other issues, 2) initiatives on risk management necessary for securing sustainability, including earthquake resistance, disaster prevention, business continuity planning (BCP) and

business continuity management (BCM), and 3) management policy and implementation to promote 1) and 2).

Environmental Initiatives

First retail facility to earn “Gold” certification based on the SMBC Sustainable Building

Assessment Loan

11

Appraisal:

AEON Group’s groupwide environmental policy

Performance management initiatives such as reduction of energy consumption

Communication with stakeholders

Greening of rooftops & premises and improvement of local parkland and grass parking

Establishment of sub meters and user manuals for measuring energy in operations

Placement of management personnel and periodic inspection and maintenance

Ongoing initiatives to reduce power consumption such as installing rooftop solar panels

and converting to LED indirect lighting

Using the experience gained from supplying food to local communities after the 2011

Great East Japan Earthquake to improve the disaster resilience of buildings and fulfill a

role as a storage facility for emergency supplies

Page 12: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Total interest-

bearing debt 67.0 billion

Average time to

maturity 5.2 years

Average interest

rate on borrowings 0.92%

Lender Amount (billions of yen)

Term Interest rate Breakdown

Mizuho Bank

Sumitomo Mitsui Banking

Corporation

Sumitomo Mitsui Trust Bank

Bank of Tokyo-Mitsubishi UFJ

The Norinchukin Bank

Mizuho Trust & Banking Co., Ltd.

Mitsubishi UFJ Trust & Banking

Corporation

Resona Bank, Limited

AEON BANK, LTD.

Development Bank of Japan

The Hyakugo Bank, Ltd.

Hiroshima Bank, Ltd.

The Mie Bank, Ltd.

The 77 Bank, Ltd.

The Chiba Bank, Ltd.

67.0

4.0 Short-term Floating (base rate2 + 0.25%)

9.0

Long-term

Floating (base rate2 + 0.25%)

27.0 Effective fixed rate3

0.78125%

22.0 Effective fixed rate3

1.17250%

5.0 Effective fixed rate3

1.76375%

Japan Credit Rating Agency, Ltd. (JCR)

Long-term Issuer Rating AA-

Notes: 1. LTV = Total interest-bearing debt plus tenant leasehold and guarantee deposits received (including tenant leasehold and guarantee deposits received in trust) / Total assets × 100

2. Refers to the three-month Japanese yen TIBOR released by the Japanese Bankers Association; provided, however, that if there is no corresponding time period, it refers to the

straight-line method as reasonably set by the agent.

3. While funds are borrowed at floating rates, the interest rates are fixed in effect by entering into interest rate swap agreements to hedge interest rate risk.

The figures are the weighted average interest rates calculated after taking into consideration the effect of interest rate swaps.

Financial Highlights

LTV1 43.4%

Ratio of fixed-rate debt 80.6%

Ratio of long-term debt 94.0%

Bank consortium led by Mizuho Bank, Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank

12

Interest-Bearing Debt

Debt Snapshot

Credit Rating

Long-term, Stable Debt Structure

40

90

270

220

50

第1期(~25/7)

第3期(~26/7)

第5期(~27/7)

第7期(~28/7)

第9期(~29/7)

第11期(~30/7)

第13期(~31/7)

第15期(~32/7)

第17期(~33/7)

第19期(~34/7)

第21期(~35/7)

第23期(~36/7)

その他(Billions of yen)

Distribution of Maturities

Fixed rate 80.6%

Floating rate 19.4% Long-term 94.0%

Short-term 6.0%

(period) 1st 3rd 5th 7th 9th 11th 13th 15th 17th 19th 21st 23rd

4.0

9.0

27.0

22.0

5.0

Page 13: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

External Environment and Industry Trends

13

The effects of Abenomics (economic policies, quantitative easing and forward guidance by the BoJ) are reflected in the depreciation

of the yen and the rising stock market, as well as an upturn in exports and capital investments. Despite concerns about consumer

sentiment due to the impending consumption tax hike and a projected rise in long-term interest rates, we anticipate improvement or

stability overall at both the macroeconomic and microeconomic levels.

The competitive landscape of the retail industry is changing dramatically due to factors such as the growth of e-

commerce, industry realignment through M&A and consolidation, and the expansion of food sales by convenience stores

and drugstores.

As for consumer spending, although consumer sentiment is showing some signs of improvement, budget-consciousness

remains strong and people are becoming increasingly selective about where they shop.

The AEON Group is pursuing a strategy of shifting to four growth areas – Asian markets, urban markets, senior-oriented

markets and digital markets – as it seeks to become the number-one retail group in Asia by 2020.

Example: The opening of AEON MALL Makuhari New City in

December 2013. This new flagship mall is based on an

omni-channel concept combining “products, activities and

the Internet” in a total floor area of approximately 400,000 m2.

AEON MALL Makuhari New City

External Environment (Macroeconomic & Retail Environment)

Industry Trends

Page 14: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Forecast for 3rd Fiscal Period Ending July 31, 2014 and 4th Fiscal Period

Ending January 31, 2015

14

Jan. 2014 Period

Results (millions of yen)

July 2014 Period

Forecast (millions of yen)

Change

(vs. previous

period)

Jan. 2015 Forecast (millions of yen)

Change

(vs. previous

period)

Operating

Revenues 2,773 7,420 +167.5% 7,421 0.0%

Operating

Income 1,201 2,807 +133.6% 2,791 -0.6%

Ordinary Income 761 2,335 +206.8% 2,329 -0.2%

Net Income 759 2,331 +206.8% 2,323 -0.3%

Distributions per

Unit (yen) 686 2,450 +1,764 2,440 -10

2nd Period NOI Yield

(annualized basis) (1) 7.9% 3rd period NOI yield

forecast (annualized basis)(note)

6.9% 4th period NOI yield

forecast (annualized basis)(note)

6.9%

Main Factors in

Change in Distributions

Effect from operation for a full period +1,435 yen

Decrease in IPO-related expenses +217 yen

Increase in leasing business profit due to

operation of Taman property for full period +7 yen

Increase in repair expenses -20 yen

Decrease in borrowing costs +10 yen

Increase in other expenses -7 yen

3rd Fiscal Period Distribution (comparison with 2nd fiscal period result)

4th Fiscal Period Distribution (comparison with 3rd fiscal period forecast)

Property we plan to acquire in the 3rd fiscal period:

AEON Taman Universiti

Shopping Centre

(pending approval by Malaysian

authorities)

Note: The performance forecast above is presented as of March 14, 2014. Future purchases or sales of real estate or other assets, trends in the real estate market, or other changes in the conditions affecting AEON REIT

may cause actual results to differ materially from the forecast figures. The performance forecast above is not a guarantee of the amounts of distributions.

Change in timing of planned acquisition of Taman property -5 yen

Increase in other operating expenses (IR, attorney fees, etc.) -62 yen

Decrease in borrowing costs +154 yen

Change in accounting treatment of IPO-related expenses -37 yen

For reference:

Main factors in change in distribution forecast for 3rd period from original forecast

announced November 22, 2013

Note: Calculated by replacing net operating income (NOI) after subtracting real estate leasing expenses (excluding depreciation and amortization and losses on disposal of fixed assets) from real

estate rental revenue in the operating period after the listing with the annualized equivalent and dividing by the total purchase cost of properties owned. NOI yield forecasts for the 3rd and 4th

fiscal periods are based on the same assumptions as the performance forecasts above.

Page 15: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Roadmap for Growth

15

Medium-to-Long-Term Asset Scale Targets

By realizing a mutually beneficial relationship with our sponsor, we will aim for assets of ¥300 billion

after three years and ¥500 billion after five years.

Key Measures

●External growth using the AEON Group’s pipeline

●Strategic cash management using internal reserves

●Expansion of overseas investment and diversification of types and regions of properties

●Management of leverage with LTV in the 40-50% range

End of 2nd period 3 years after listing 5 years after listing

At time of listing

¥158.3 billion

¥300 billion

¥500 billion

Note: The figures above are targets made at the present time and may not be realized due to future events or the market environment.

Page 16: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

II. AEON REIT’s

Investment Strategy

Page 17: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Basic Philosophy

17

AEON REIT invests primarily in retail and related properties1 that are an integral part of the communities in

which they are located. We believe that these properties and facilities form the backbone of the local communities

and their retail business infrastructure.

Our mission is to contribute to the betterment of individual lives and local communities through investment in

retail and related properties. In doing so, we seek to generate stable revenues and achieve the steady growth of

our asset portfolio over the medium to long term.

Note 1. Refers to retail facilities, logistics facilities and related facilities. Retail facilities refers to facilities containing retail businesses and other merchandising businesses,

entertainment and amusement facilities and other facilities that attract customers (including parking lots and equipment and systems for logistics). Logistics facilities refers to

warehouses and other storage facilities for distribution and transport of merchandise and other goods.

Page 18: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Basic Policy

We will aim to maximize value for unitholders by building a mutually beneficial relationship between REIT and

AEON Group.

18

A growth strategy based on a mutually beneficial relationship between REIT and AEON Group1

Note 1. Refers to the group comprising the holding company AEON Co., Ltd. and its 227 consolidated subsidiaries and 24 equity-method affiliates (as of February 28, 2014).

Page 19: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Type

Investment percentage1

Domestic Overseas

85% or more No more than 15%

Large-scale

retail

property

SRSC

(Super regional shopping center)2

80% or more RSC

(Regional shopping center)3

CSC

(Community shopping center)4

Other retail

property

NSC

(Neighborhood shopping center)5

No more than 20%

SM

(Supermarket)6

Logistics facility No more than 10%

A Highly Stable Portfolio Centered on the AEON Group’s Large-Scale Retail Properties

Investment Areas Investment Targets

ASEAN7

region, China and other

countries/regions with good medium to

long-term economic growth prospects

In principal, retail properties that are leased

in their entirety under master lease

contracts to the AEON Group, which

manages and operates the properties

Overseas Investment Targets

19

Investment Properties Centered on Large-Scale Retail Properties and Investment Ratios

Notes:

1. Calculated based on purchase price.

2. Larger commercial area than regional shopping centers. A super regional-type shopping center having a number

of anchor tenants and a shopping mall forming a complex of over 200 specialty stores.

3. A regional-type shopping center having a general merchandise or other similar store as the anchor tenant and a

complex of over 50 specialty stores.

4. A retail property having a general merchandise store, a discount store, a large grocery supermarket or another

similar store as the anchor tenant, and a complex of approximately 20-50 specialty stores.

5. A small-scale retail property serving a small commercial area, having a grocery supermarket or another similar

store as the anchor tenant and a complex of approximately 10-30 specialty stores generally selling household

goods.

6. A grocery supermarket mainly selling high purchase frequency commodities such as food and household goods.

Note 7: Indonesia, Malaysia, Philippines, Singapore, Thailand, Brunei, Vietnam, Laos,

Myanmar and Cambodia

Page 20: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

AEON REIT Investment Corporation

AEON Reit Management Co., Ltd.

Stable growth of our portfolio over the medium to long term

Sponsor

AEON CO., LTD.

Pipeline support companies

Shopping center

management providers

AEON Retail Co., Ltd.

AEON Mall Co., Ltd.

Overseas support companies

AEON CO. (M) BHD.

Integrated capability of AEON Group

A Growth Strategy that Leverages the AEON Group’s Collective Capabilities

20

Sponsor support to leverage integrated capability of AEON Group

Sponsor support agreement 1

Trademark license agreement 3

Pipeline support agreement1

Shopping center

management agreement1

Memorandum of

understanding on

investments in properties

in Malaysia2

Notes:

1. The sponsor support agreement, pipeline support agreement and shopping center management agreement are

valid for three years from October 17, 2013. The agreements will be automatically renewed with identical terms and

conditions for successive three-year periods unless either party gives written notice of termination to the other party

at least three months prior to the date of expiration.

2. No period of validity is stated in the memorandum of understanding, which is not a legally binding document.

3. The period of validity is August 7, 2013 to July 31, 2014. The agreement will be automatically renewed with identical

terms and conditions for successive one-year periods unless either party gives written notice of termination to the

other party at least one month prior to the date of expiration.

Page 21: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Strategic Cash Management and a Stable Financial Position

(1) Investment contributing to an

increase in income

(2) Measures aimed at stabilizing

financial position

(3) Capital strategies that protect

unitholder interests

a. Appropriation of funds to acquire new properties

b. Investing in revitalization of property to boost

revenues and competitiveness

c. Reduction in the cost of our debt by repayment

of interest-bearing debt

d. Distributions in excess of retained earnings

e. Increased capital efficiency through unit buy-

backs1

In the large-scale retail properties that we target for investment, the depreciation expense accounts for a large percentage of the property value.

By deploying retained earnings in an amount equal to the depreciation expense, we plan to increase capital efficiency and stabilize cash flow.

21

Strategic Cash Management

Stable Financial Position

Note 1. Our articles of incorporation provide that we may repurchase our investment units under certain circumstances. This provision in our articles of incorporation will become effective on the date on

which the amendments to the Act on Investment Trusts and Investment Corporations, which were enacted by the Japanese Diet on June 12, 2013, come into force.

Growth

driven by

efficient use

of capital

Policies

LTV2 Maintain a LTV ratio of 40-50%

Extension of debt maturities & fixing of interest rates Set loan terms according to the status of cash flows based on tenant lease terms and content

Mix of lenders Achieve appropriate diversification of different lender financial institutions, primarily megabanks

Note 2. LTV = Total interest-bearing debt plus tenant leasehold and guarantee deposits received (including tenant leasehold and guarantee deposits received in trust) / Total assets × 100

Page 22: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Framework for Maximizing Unitholder Value

Drafting of proposal

by the responsible

department

Approval by the

Compliance Officer

Deliberation and

resolution by the

Investment

Committee*

Deliberation and

resolution by the

Compliance

Committee*

Report to the Asset

Manager’s Board of

Directors and AEON

REIT

*An outside expert must attend the meeting and agree in order for the

resolution to pass.

Returned

Dropped or instructions given

to modify content

Dropped or instructions given

to modify content

Management fee

structure Calculation Method

Manage-

ment fee

Management

fee I Total assets × 0.3% × (Number of operating days / 365日)

Management

fee II DPU before deducting Management fee II × NOI × 0.001%

Acquisition fee Purchase price × 0.5% [Related party transactions:

Purchase price × 0.25%]

Disposition fee Disposition price × 0.5% [Related party transactions: no

disposition fee paid]

22

Transparent Decision-Making Process

Alignment of Interests with the AEON Group Introduction of an Asset Management Fee Structure Linked to

Distributions per Unit

• Ownership of investment units by AEON Group

• Co-ownership of properties with AEON Group

Ownership interest 19.0% (as of January 31, 2014)

Co-owned properties 2 (as of January 31, 2014)

Page 23: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Appendix

・ Statements of Income for 2nd Fiscal Period

(Ended January 31, 2014) ・ Balance Sheets for 2nd Fiscal Period (As of

January 31, 2014) ・ Portfolio ・ Unitholder Information at End of 2nd Fiscal

Period (January 31, 2014)

Page 24: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Balance Sheets for 2nd Fiscal Period (as of January 31, 2014)

24

Assets 2nd Fiscal Period (as of January 31, 2014)

Amount

(thousands of yen)

Percentage of Total

Assets (%)

Current assets

Cash and deposits 2,615,345 1.5%

Cash and deposits in trust 4,364,553 2.5%

Prepaid expenses 337,789 0.2%

Deferred tax assets 36 0.0%

Consumption taxes receivable 4,490,071 2.6%

Total current assets 11,807,796 6.9%

Noncurrent assets

Property and equipment

Buildings in trust 88,798,718 51.7%

Structures in trust 659,388 0.4%

Land in trust 50,903,990 29.7%

Construction in progress in trust 117,448 0.1%

Total property and equipment 140,479,545 81.8%

Intangible assets

Leasehold rights in trust 18,045,526 10.5%

Total intangible assets 18,045,526 10.5%

Investments and other assets

Long-term prepaid expenses 1,107,588 0.6%

Lease and guarantee deposits 10,000 0.0%

Total noncurrent assets 159,642,661 93.0%

Deferred assets

Investment unit issuance expenses 194,098 0.1%

Total deferred assets 194,098 0.1%

Total assets

171,644,556

100.0%

Liabilities 2nd Fiscal Period (as of January 31, 2014)

Amount

(thousands of yen)

Percentage of Total

Assets (%)

Current liabilities

Accounts payable, trade 46,775 0.0%

Accounts payable, other 149,417 0.1%

Short-term borrowings 4,000,000 2.3%

Accrued expenses 20,327 0.0%

Income taxes payable 1,343 0.0%

Other current liabilities 11,816 0.0%

Total current liabilities 4,229,681 2.5%

Long-term liabilities

Long-term debt 63,000,000 36.7%

Leasehold and security deposits in trust 7,411,389 4.3%

Total long-term liabilities 70,411,389 41.0%

Total liabilities 74,641,070

43.5%

Net assets

Unitholders’ equity

Unitholders’ capital 96,351,350 56.1%

Retained earnings - 0.0%

Unappropriated retained earnings 652,135 0.4%

Total unitholders’ equity 97,003,485 56.5%

Total net assets 97,003,485 56.5%

Total liabilities and net assets 171,644,556 100.0%

Page 25: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Operating revenues 2nd Fiscal Period (as of January 31, 2014)

Amount

(thousands of yen)

Percentage of Operating

Revenues (%)

Rental revenues 2,773,937 100.0%

Total operating revenues 2,773,937 100.0%

Operating expenses

Property-related expenses 1,439,883 51.9%

Asset management fees 102,131 3.7%

Asset custody fee and administrative service

fees 16,994 0.6%

Directors’ compensation 3,600 0.1%

Other operating expenses 9,560 0.3%

Total operating expenses 1,572,171 56.7%

Operating income 1,201,765 43.3%

Non-operating income

Interest income 91 0.0%

Total non-operating income 91 0.0%

Non-operating expenses

Interest expenses 116,352 4.2%

Borrowing expenses 99,301 3.6%

Public offering expenses 207,250 7.5%

Amortization of investment unit issuance costs 17,645 0.6%

Total non-operating expenses 440,549 15.9%

Ordinary income 761,307 27.4%

Income before income taxes 761,307 27.4%

Net income 759,991 27.4%

Loss carried forward (107,855) (3.9%)

Unappropriated retained earnings 652,135 23.5%

25

Statements of Income for 2nd Fiscal Period (Ended January 31, 2014)

Page 26: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Portfolio

Property

number

Property name

Address

Type of

ownership

Annual

contracted rent

(Millions of yen)

Portfolio

composition

(%)

Leasable area

(㎡)

Acquisition price

(Millions of yen)

Book value1

(Millions of yen)

Appraisal value1

(Millions of yen)

Capitalization

rate2

(%)

PML

(%)

SRSC-1 AEON LakeTown mori 2-8 Azuma-cho, Koshigaya-shi, Saitama Trust beneficiary

interest 1,371 13.4 160,387.00 21,190 21,159 22,100 5.2 2.0

SRSC-2 AEON LakeTown kaze 4-21-1 Azuma-cho, Koshigaya-shi, Saitama Trust beneficiary

interest 661 4.3 127,183.81 6,730 6,719 7,040 5.6 1.7

RSC-1 AEON Mall Morioka 4-7-1 Maegata, Morioka-shi, Iwate Trust beneficiary

interest 678 3.4 98,968.59 5,340 5,353 5,590 6.9 11.1

RSC-2 AEON MALL Ishinomaki 4-101, Akanedaira, Ishinomaki-shi, Miyagi Trust beneficiary

interest 710 4.2 60,682.20 6,680 6,701 7,010 6.3 3.9

RSC-3 AEON MALL Mitouchihara 135, Aza Nishi, Nakahara-cho, Mito-shi, Ibaraki Trust beneficiary

interest 1,448 10.4 159,997.49 16,460 16,448 17,200 6.3 0.7

RSC-4 AEON MALL Ota 81, Ishihara-cho, Ota-shi, Gunma Trust beneficiary

interest 954 4.3 93,165.27 6,860 6,880 7,820 6.6 4.8

RSC-5 AEON Sagamihara Shopping Center 2-10-1, Kobuchi, Minami-ku, Sagamihara-shi, Kanagawa Trust beneficiary

interest 841 6.5 75,056.62 10,220 10,237 10,300 5.5 13.4

RSC-6 AEON MALL Ogaki 2-100, Sotono, Ogaki-shi, Gifu Trust beneficiary

interest 660 3.1 64,246.26 4,950 4,950 5,210 6.8 9.2

RSC-7 AEON MALL Suzuka 4-1-2, Shonohayama, Suzuka-shi, Mie Trust beneficiary

interest 893 6.1 125,236.10 9,660 9,690 10,100 6.3 7.5

RSC-8 AEON MALL Meiwa 1223, Nakamura, Meiwa-cho, Taki-gun, Mie Trust beneficiary

interest 430 2.1 44,193.80 3,290 3,311 3,550 6.8 4.6

RSC-9 AEON MALL Kasai-Hojo 308-1, Hojo-cho, Kasai-shi, Hyogo Trust beneficiary

interest 658 4.6 48,229.25 7,230 7,238 7,610 6.9 10.7

RSC-10 AEON MALL Hiezu 1160-1, Hiezu, Hiezu-son, Saihaku-gun, Tottori Trust beneficiary

interest 852 4.9 102,045.24 7,780 7,772 8,170 6.9 8.0

RSC-11 AEON MALL Kurashiki 1, Mizue, Kurashiki-shi, Okayama Trust beneficiary

interest 1,484 11.3 157,274.78 17,890 17,875 18,700 6.2 0.5

RSC-12 AEON MALL Ayagawa 822-1, Kayahara, Ayagawa-cho, Ayauta-gun, Kagawa Trust beneficiary

interest 922 5.5 113,149.07 8,740 8,727 9,190 6.5 0.6

RSC-13 AEON MALL Nogata 2-1-1, Yunohara, Nogata-shi, Fukuoka Trust beneficiary

interest 1,091 7.1 151,969.51 11,250 11,262 12,700 6.4 0.1

RSC-14 AEON MALL Kumamoto 2232, Aza Nagaike, Oaza Uejima, Kashima-machi,

Kamimashiki-gun, Kumamoto

Trust beneficiary

interest 1,170 8.9 101,132.38 14,060 14,080 14,700 6.2 6.2

Total 14,823 100.0 1,682,917.37 158,330 158,407 166,990 - 1.4

26

Notes:

1.As of January 31, 2014.

2.Capitalization rate using the direct capitalization method.

3. Each property undergoes a seismic risk analysis to forecast the loss rate related to damage from the recurrence of an earthquake during a 475 year period. The number as a whole is not an average, but rather the value for the

portfolio PML.

Page 27: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Unitholder Information at End of 2nd Fiscal Period (January 31, 2014)

27

Unitholders by Type

Major Unitholders

Number of units

(950,000)

Number of

unit holders

(21,376)

Individuals and others Financial institutions (including financial instruments firms) Other domestic corporations Foreign corporations

Unitholder name Number of units % of total

1 AEON Co., Ltd. 180,095 19.0%

2 Japan Trustee Services Bank, Ltd. (trust account) 138,375 14.6%

3 The Nomura Trust & Banking Co., Ltd. (trust account) 48,237 5.1%

4 Trust & Custody Services Bank, Ltd. (securities investment trust account) 45,636 4.8%

5 The Master Trust Bank of Japan, Ltd. (trust account) 44,010 4.6%

6 Sumitomo Mitsui Trust Bank, Limited 27,150 2.9%

7 Nomura Bank (Luxembourg) S.A. 20,270 2.1%

8 Mizuho Bank, Ltd. 20,000 2.1%

9 Century Tokyo Leasing Corporation 20,000 2.1%

10 The Bank of New York, Non-Treaty JASDEC Account 19,364 2.0%

Total 563,137 59.3%

Page 28: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

The AEON Group is drawing on its experience in Japan to develop

retail properties in major cities in Asia as well.

The AEON Group has the highest operating revenues1 in the

Japanese retail industry, and the retail facilities it operates have

grown to 16,375 stores and locations, including alliance partners.2

The AEON Group’s multiple businesses include financial services, shopping

center development and service businesses, which complement its core

retail business centered on general merchandise stores.

Synergy generated by combining these highly competitive businesses helps

drive further growth.

AEON Group Profile

1,892

The AEON Group manages retail properties encompassing 16,375 stores as of February 28, 2013.

Business spanning

14 countries

GMS (general merchandise store)

SM (supermarket)

DS (discount store)

Home center

Convenience store

Specialty store

Drugstore

Other retail store

Financial service

Service business

Other business

Total 16,375 stores/locations

598

1,708

152

123

4,463*

3,664

3,146

589

531

1,394

7

*The number of stores and office locations,

including consolidated subsidiaries and equity-

method affiliates

Consolidated operating

revenue

¥5,685.3 bn

Number of group employees

360,000

Malaysia

26

9

22

34

27

Japan

537

1,627

130

123

2,168

3,609

3,146

560

248

1,353

Myanmar

28

South Korea

1

Kazakhstan 1

Laos

1 India

1

Indonesia

6

Australia

1

Philippines

337

2

China

35

14

49

55

29

30 11

4 Vietnam 16 3 1

Cambodia 1

Thailand

58 204 3 1

Business Operations Spanning 14 Countries Synergy from Multiple Businesses

Retail

business

Development

business

Service

business

Financial

services

business

Synergy

creation

General merchandise

stores

Supermarkets

Discount stores

Drugstores/pharmacies

Strategic retail stores

Total of 14,353 stores

(as of Feb. 2013)

AEON Mall AEON Town AEON Ipoh Station 18

Shopping Centre

(Malaysia)

157 malls in Japan and overseas (as of February 28, 2013)

AEON DELIGHT AEON Fantasy

AEON Card AEON’s

e-money

(WAON)

AEON Bank

Cardholders

31.85 million Credit card shopping

volume

¥3,561.5 billion (as of March 31, 2013)

Cards issued

31.0 million Transaction volume

¥1,200.0 billion (as of Feb. 28, 2013)

Number of accounts

3.06 million Deposits

¥1,220.1 billion (as of March 31, 2013)

Number of

consolidated

subsidiaries: 227

Notes:

1. Based on retail sales rankings published in the Nikkei Asian Review (6/26/2013)

2. Management results as of February 28, 2013

Page 29: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

(1) The AEON Group’s development capabilities as Japan’s leading

shopping center developer

The AEON Group operates 598 general merchandise stores

nationwide. These stores, with their wide selection of merchandise,

and the specialty stores of shopping malls help to enhance the appeal

of retail properties.

Anchor tenants with

strong foot traffic

(general

merchandise stores)

With its own logistics functions covering all of Japan, the AEON Group

has acquired expertise in efficient supply chain management Strategic logistics

management

A Business Model Combining the Retail and Shopping Center Development Businesses

(2) Major large-scale retail properties developed by the AEON Group (including

properties it plans to develop) The AEON Group’s general merchandise stores use strategic logistics

management to drive down costs, and their large selection of merchandise makes

them competitive as strong anchor tenants.

AEON Retail Co., Ltd. is the AEON Group’s core company in the retail business.

Based on the experience and know-how acquired through its retail and shopping

center development businesses, the AEON Group is able to develop retail

properties in various configurations best suited for each site.

AEON Mall Co., Ltd. is the AEON Group’s core company in the shopping center

development business.

The AEON Group’s Development Capabilities in Large-Scale Retail Properties

Note 1. As of October 17, 2013

1

Properties to

be purchased

AEON MALL Ogaki (Gifu Pref.)

AEON MALL Suzuka (Mie Pref.)

AEON MALL Meiwa (Mie Pref.)

Major shopping centers

developed by AEON Group

AEON MALL Takaoka (Toyama Pref.)

AEON MALL Kakamigahara (Gifu Pref.)

AEON MALL Okayama (Okayama Pref.)

Tokai/Hokuriku

Chugoku/Shikoku

AEON MALL Odaka (Aichi Pref.)

AEON MALL Kurashiki (Okayama Pref.)

AEON MALL Hiezu (Shimane Pref.)

AEON MALL Hiroshimafuchu (Hiroshima Pref.)

AEON MALL Ayagawa (Kagawa Pref.)

AEON MALL Kochi (Kochi Pref.)

Kyushu

AEON MALL Yahatahigashi (Fukuoka Pref.)

AEON MALL Nogata (Fukuoka Pref.)

AEON MALL Fukuoka (Fukuoka Pref.)

AEON MALL Fukutsu (Fukuoka Pref.)

AEON MALL Kumamoto (Kumamoto Pref.)

AEON MALL Sapporo Hiraoka (Hokkaido Pref.)

AEON MALL Morioka (Iwate Pref.)

AEON MALL Moriokaminami (Iwate Pref.)

Hokkaido/Tohoku

AEON MALL Ishinomaki (Miyagi Pref.)

AEON MALL Natori (Miyagi Pref.)

AEON MALL Niigataminami (Niigata Pref.)

AEON MALL Mitouchihara (Ibaraki Pref.)

AEON MALL Tsukuba (Niigata Pref.)

AEON MALL Ota (Niigata)

Kanto/Koshinetsu

AEON MALL Makuhari New City (Chiba Pref.)

AEON MALL Kisarazu (Chiba Pref.)

AEON LakeTown kaze・mori (Saitama Pref.)

AEON MALL Urawa-Misono (Saitama Pref.)

AEON MALL Hanyu (Saitama Pref.)

AEON Sagamihara Shopping Center (Kanagawa Pref.)

Kinki

AEON MALL KYOTO (Kyoto Pref.)

AEON MALL Kyoto Katsuragawa (Kyoto Pref.)

AEON MALL Osaka Dome City (Osaka Pref.)

AEON MALL Dainichi (Osaka Pref.)

AEON MALL Rinkusennan (Osaka Pref.)

AEON MALL Kashihara (Nara Pref.)

AEON MALL Wakayama (Wakayama Pref.)

AEON MALL Kasai-Hojo (Hyogo Pref.)

Major shopping centers currently under development

(openings planned) by the AEON Group

AEON MALL Okayama

AEON MALL Kyoto Katsuragawa

AEON MALL Makuhari New City

China/ASEAN region

Properties to be purchased

Major shopping centers currently under development

(openings planned) by the AEON Group

Long Bien

Hanoi, Vietnam

AEON MALL Kagoshima (Kagoshima Pref.)

Tan Phu Celadon

Ho Chi Minh City, Vietnam

Phnom Penh

Phnom Penh, Cambodia

Kulai

Kulai, Johor, Malaysia

AEON Taman Universiti Shopping Centre

Johor Bahru, Johor, Malaysia

Tianjin Meijiang

Xiqing, Tianjin, China

Suzhou Industrial Park

Suzhou, Jiangsu, China

Suzhou Wuzhong

Suzhou, Jiangsu, China

Wuhan Olympic Garden

Wuhan, Hubei, China

Guangdong Qing He

Guangzhou, Guangdong, China

BSD

Banten, Tangerang, Indonesia

29

The AEON Group’s Competitiveness as a Retail Business

The AEON Group’s Competitiveness (Development Capabilities)

as a Shopping Center Developer

AEON Group’s

share of large-

scale shopping

centers in

Japan with floor

area more than

50,000 m2

All 110 shopping

centers in Japan with

floor area >50,000 m2

Large-scale shopping centers developed

and managed by the AEON Group

(51 properties)

(as of December 31, 2012)

Floor area of 50,000 m2 is

slightly larger than the 46,755

m2 building area of Tokyo

Dome

Page 30: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Seek a balanced mix of 1) national chain stores, 2) local retailers and stores

new to the area, and 3) AEON Group tenants

Create attractive environments conducive to comfortable, enjoyable

shopping

AEON shopping center tenants from some 9,000 companies (approximately

30,000 stores) make up the AEON Doyutenkai (store association)

Tenant support is available for AEON Doyutenkai members

Many potential tenants of large-scale shopping centers exist within the AEON Group

The AEON Group’s Management Capabilities in Large-Scale Retail Properties

Note 1 : Shown in the chart are the names of some of the retail stores of companies that are AEON Doyutenkai members as of October 2013; however, these stores are not necessarily tenants in all of the properties we own.

Selected Tenants belonging to AEON Doyutenkai1

Ladies/Mens/Kids

Ladies/Mens/Kids

Family apparel

Family apparel

Ladies/Mens

Ladies

Ladies

H&M

ZARA

Uniqlo

Global Work

AZUL by moussy

OPAQUE.CLIP

Green Parks Topic

Handbags

Shoes

Brand shop

Accessories

Jewelry

Leather items

Eyewear

SAC’S BAR

ASBee

Happiness

to you by THE KISS

Kanda

Alzuni

JINS

Household goods/interior

Interior & general merchandise

Clothing & household goods

Home fashion products

Aromatherapy goods/healing cafe

Miscellaneous goods & books

Character merchandise

Afternoon Tea

HOME & LIVING

Francfranc

MUJI

one's

Tree of Life

Village Vanguard

Disney Store

Culture school

Cooking school

Amusement

Aesthetic salon

Bank

Clinic

JEUGIA Culture Center

ABC Cooking Studio

Molly Fantasy

Takano Yuri Beauty Clinic

AEON Bank

Internal medicine /

ophthalmology / dental /

blood donation room

Fast food

Cafe

Ice cream

Beef tongue

Pizza

Ramen noodles

McDonald’s

Starbucks

Komeda Coffee

Baskin-Robbins

Rikyu

Pizza Salvatore Cuomo

Taishoken Ramen Shop Koji

A mall-type regional shopping center refers to a regional

shopping center in a low-rise (2-4 story) building with at least

two anchor stores (general merchandise stores, department

stores, large specialty stores, etc.) at either end, which are

connected by a specialty store mall.

Cinema

Sporting goods

Consumer electronics

Toys & baby products

Lifestyle stores

Furniture & interior decoration

Household goods

AEON Cinemas

Sports Authority

Yamada Denki Tecc Land

Toys “R” Us

Vivre GENE

Ambience

R.O.U

Pets & animal hospital

Books and magazines

DVDs & CDs

Sporting goods

Sports bikes

Drugstore

Craft and hobby shop

AEON Pet ・AEON Animal Hospital Miraiya Shoten

TSUTAYA

Murasaki Sports

Y’sRoad

Hac Drug

Meister by Yuzawaya

Apparel Shoes & Accessories

Miscellaneous Goods Entertainment & Amusement

Services

Home Restaurants Food

・Laura Ashley

・Talbots

・Taka-Q

・MALE&Co.

・m.f.editorial

・ikka

・LBC market

・Branshes

・TOPVALU

COLLECTION

・ASBee

・Greenbox

・Feminine Café

・Nustep

・Claire’s

・Andrew’s Ties

・AEON Bank

・AEON Insurance Service

・AEON Compass

・Magic Machine

・Riat!

・ZWEI

・AEON Sports Club

“The Space”

・AEON Culture Club

・AEON Cinemas

・Molly Fantasy

・Caférrant

・AEON Liquor ・Cantevole

・Origin Bento

・Ohitsu Gohan

Shirokujichu

・Mugi no Ka

・HERB&SPICE

・Gourmetdor

・Wagurume

・Ryuryumen

・HAC Drug

・Megapetro

・Laura Ashley Home

・AEONBIKE

・AEON Pet

・Sports Authority

・Miraiya Shoten

・Scrum

・R.O.U

・Pandora House

・Cosmeme

・The Body Shop

・AEON Body

30

AEON Group’s Approach to Tenant Leasing

Leading Tenant Leasing Capabilities to Raise the

Competitiveness of Large-Scale Retail Properties

Diverse Tenants Managed by AEON Group Companies Enable

Leasing Flexibility

Anchor tenant Anchor tenant

Specialty store mall

AEON (General merchandise store/supermarket)

Fashion Shoes & accessories

Services Miscellaneous products Restaurants & food court

Lifestyle goods

Large specialty stores

Page 31: AEON REIT Investment Corporation...Topic 1:Overview of Initial Public Offering Offering Structure: Global offering Japanese public offering + international offering (Reg S) Listing

Disclaimer

― These materials contain forward-looking statements with respect to the future business results, plans, and management

targets and strategies of AEON REIT Investment Corporation (AEON REIT). These forward-looking statements are based on

assumptions made at the present time about future events and the operating environment. There is no guarantee that these

assumptions are correct. Various factors could cause actual future results to differ materially from those expressed or implied

by the forward-looking statements contained herein.

― While all reasonable measures have been taken to ensure that the information presented herein is correct, AEON REIT makes

no assurance or guarantee as to the accuracy or completeness of that information. The contents of the information may be

changed or eliminated without notice.

― These materials include analyses, judgments and other views of AEON REIT and AEON Reit Management Co., Ltd. made at

the present time. There are other views that differ from these, and furthermore, AEON REIT and AEON Reit Management Co.,

Ltd. may change these views in the future.

― These materials are provided for the sole purpose of presenting general information and explaining the management

strategies of AEON REIT, and are not intended as a solicitation to purchase AEON REIT’s investment units, nor to enter into

any other financial instruments transaction agreement. When making investments, investors are advised to use their own

judgment and discretion.

Asset Manager: AEON Reit Management Co., Ltd. (Registration of financial instruments business: Kanto Local Finance Bureau, Director-General (Financial Instruments), No. 2668)

Contact Information

Please direct inquiries to:

AEON Reit Management Co., Ltd.

Finance and Planning Department

TEL: 03-5283-6360

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