FP 19 Semi-Annual Report
From November 1, 2023 to April 30, 2024

Securities Code 3309
4-15-1, Akasaka, Minato-ku, Tokyo
https://sekisuihouse-reit.co.jp/en/

Contents
Outline of Asset Management Operation

1

Outline of the Investment Corporation

14

Condition of Investment Assets

17

Capital Expenditures for Property

36

Condition of Expenses and Debts

37

Condition of Investment Transactions

38

Other Information

42

Financial Statements
Balance Sheet

43

Statement of Income and Retained Earnings

45

Statement of Changes in Net Assets

46

Statement of Cash Distributions

49

Statement of Cash Flows

50

Notes to Financial Statements

51

Supplementary Schedules

75

Independent Auditor’s Report88

Outline of Asset Management Operation
1.

Overview of the Fiscal Period under Review(1) Major Developments of the Investment Corporation
Sekisui House Reit, Inc. ("SHR") was established on September 8, 2014 as an investment corporation investing
primarily in commercial properties including office buildings, hotels and retail and other properties, sponsoredby Sekisui House, Ltd. ("Sekisui House"), a leading homebuilder representing Japan with an establisheddevelopment and management track record also in the property development business. SHR was listed on theReal Estate Investment Trust Section of the Tokyo Stock Exchange, Inc. ("Tokyo Stock Exchange") on
December 3, 2014 (securities code: 3309).
Sekisui House Residential Investment Corporation ("SHI", and collectively with SHR, the "Two Investment
Corporations") was established on April 20, 2005 as an investment corporation investing primarily inresidences and retail properties, with the corporate name of JOINT REIT Investment Corporation, and listed on
the Real Estate Investment Trust Section of the Tokyo Stock Exchange on July 28, 2005. In March 2010, a
collaboration system was established with Sekisui House serving as the main sponsor and Spring Investment
Co., Ltd. as joint sponsor for the investment corporation, which was renamed from JOINT REIT Investment
Corporation to Sekisui House SI Investment Corporation in June 2010. Later, in June 2014, its Articles ofIncorporation were revised to set residences as the sole target of investment, and the corporate name waschanged to Sekisui House SI Residential Investment Corporation. Subsequently, in association with the shift toa structure in which Sekisui House serves as the sole sponsor in March 2017, SHI was renamed to Sekisui
House Residential Investment Corporation in June 2017.
The Two Investment Corporations, each under the support of the Sekisui House Group , had separately
conducted asset management to expand their assets and secure stable returns by utilizing their respective
strengths with the aim of continuous enhancement of unitholder value. However, intending to secure strong
returns and stability and growth of cash distributions through promoting a steady increase of assets undermanagement and endeavor to maximize unitholder value by further expanding the scale of their assets andincreasing their market presence and expanding a variety of opportunities for growth through utilizing the
integrated corporate strength of the Sekisui House Group, the Two Investment Corporations conducted anabsorption-type merger with SHR as the surviving corporation and SHI as the dissolving corporation (the"Investment Corporation Merger"), setting May 1, 2018 as the effective date .
SHR's investment policy is to conduct asset management that seeks to secure stable earnings over the medium
to long term and steady growth of its investment assets, with residential properties
and commercial
properties
as major investment targets.
(Note 1)

(Note 2)

(Note 3)(Note 4)(Note 1) "Sekisui House Group" refers to a group of companies comprised of Sekisui House and its consolidated subsidiaries and its affiliates
accounted for by the equity method. The same applies hereinafter.
(Note 2) In association with the Investment Corporation Merger, Sekisui House Asset Management, Ltd. (the "former SHAM"), the asset
management company for SHI, and Sekisui House Asset Management, Ltd. (former name: Sekisui House Investment Advisors, Ltd.)("SHAM"), the asset management company for SHR, carried out an absorption-type merger as of the same date as the effective date of
the Investment Corporation Merger, with SHAM being the surviving company and the former SHAM being the dissolving company,
and changed the company name to the current one.
(Note 3) "Residential properties" refer to real estate whose principal use is residence (including student dormitories, company housing, serviced
apartments (*), serviced housing for the elderly, and paid nursing homes). The same applies hereinafter.
(*) "Serviced apartments" refer to furnished residences with appliances where a dedicated operator provides certain services to users.
(Note 4) "Commercial properties" refer to real estate whose principal use is for office buildings, hotels and retail and other properties and othernon-residential business purposes. The same applies hereinafter.

1(2) Operation Environment and Operation Performancea. Operation Environment
During the fiscal period under review, the Japanese economy has been recovering moderately, although there
have been some standstills recently.
Under these circumstances, in the real estate leasing market, as of April 30, 2024 (the "end of the fiscal period
under review"), regarding residentials which constitutes approximately 58% of the portfolio (acquisition pricebasis), the supply and demand balance remains strained due to the inflow of population into urban areas withlarge economic scale as the employment environment continued to improve, especially in the Tokyo area. As aresult, rents continued to rise for all types of residentials while overall occupancy rates of the entire residential
portfolio remained stable, with occupancy rates for new buildings in the major metropolitan areas all
significantly higher than the previous year. As for office buildings, which constitutes approximately 42% of theportfolio (acquisition price basis), in the five central wards of Tokyo, the vacancy rate was on a downward
trend, mainly for well-located properties, and rent levels have begun to rise in some areas, even in anenvironment of increased new supply. This is due to improved corporate location and a recovery in demand,
including expansion and relocation due to business expansion. However, vacancy rates remained high forproperties struggling in terms of location, and rent levels remained weak. In central Osaka, vacancy rates began
to rise due to new supply.
Furthermore, in the real estate transaction market, expected yields have remained at low levels as real estate
investors maintain their very aggressive investment stance toward high-quality properties in Japan, with theeasing financial environment remaining despite the lifting of the negative interest rate policy, and examples oflarge-scale acquisitions were also seen.
b. Operation Performance
Under the circumstances described in "(ii) Operation Environment" above, SHR disposed of 2 office building
properties (10/100 of the ownership share and 51/100 of the ownership share, respectively) and 1 hotel
property, and acquired 10 residential properties and 1 office building property with the aim of improving
profitability and securing stable revenue of the portfolio.
As of the end of the fiscal period under review, the number of properties SHR owned was 131 (comprised of
123 residential properties and 8 commercial properties) with an aggregate acquisition price(Note) of 529,331
million yen (304,526 million yen for residential properties and 224,805 million yen for commercial properties).
Moreover, the occupancy rate of SHR’s investment assets as of the end of the fiscal period under review stoodat 97.0% for residential properties, 96.6% for commercial properties and 96.9% for the entire portfolio against
the backdrop of the real estate leasing market as described above.
(Note) The "acquisition price" indicates the transaction price shown in the sales agreements for respective properties (excluding consumption tax,
local consumption tax and commission and other various expenses, rounded down to the nearest million yen). For properties SHR
succeeded from SHI through the Investment Corporation Merger, however, the value based on the appraisal by real estate appraisers with
April 30, 2018 as the appraisal date is used as the acquisition price, because the acceptance price should be the appraisal value upon theacquisition by SHR as such properties are accounted for by the purchase method with SHR set as the acquiring corporation and SHI as theacquired corporation. The same applies hereinafter.

(3) Overview of Fund Procurement
a. Borrowing of Funds
SHR refinanced a total of 18,840 million yen to repay 15,840 million yen in borrowings that becamedue during the fiscal period under review and to redeem 3,000 million yen in investment corporation bondsthat became due for redemption. Of such refinancing, 10,780 million yen was executed as a green loan within
the scope of eligible green debt based on the Green Finance Framework established in December 2022.
As a result, the balance of interest-bearing liabilities as of the end of the fiscal period under review is 257,242
million yen and the ratio of total interest-bearing liabilities to total assets ("LTV (total assets basis)") is 45.5%.

2

b. Credit Rating
The following table sets forth the status of credit ratings of SHR as of the end of the fiscal period under review.
Credit Rating Agency

Rating TypeJapan Credit Rating Agency, Ltd.
(JCR)

Long-term issuer rating: AA
Rating outlook: Stable

Japan Credit Rating Agency, Ltd.
(JCR)

Bond rating: AA

Rating and Investment Information, Inc.
(R&I)

Issuer rating: AARating outlook: Stable(4) ESG Initiatives
a. Overview of the fiscal period under review
On the environmental aspect, SHR has made efforts toward achieving net zero greenhouse gas (GHG)
emissions by acquiring Prime Maison Asakusa EAST, the first ZEH (Net Zero Energy House) property for
SHR. On the social aspect, Hommachi Minami Garden City and Akasaka Garden City received theCertification for CASBEE Wellness Office Rating Certification as buildings that take into consideration thehealth and comfort of their users, and were given "A Rank". On the governance aspect, SHR increased thenumber of female supervisory directors by one in order to further strengthen the supervisory system bypromoting diversity. As a result, the Board of Directors now consists of one executive director and three
supervisory directors, and the ratio of female directors is 50%.
These ESG initiatives have been highly evaluated outside the company, and SHR received a score of "A-" inthe CDP Climate Change 2023 Category, in which SHR participated for the first time in 2023.
In addition, SHR was selected as a constituent of the Dow Jones Sustainability Asia/Pacific Index for the firsttime and was named a Sustainability Yearbook Member in S&P Global's "The Sustainability Yearbook 2024".
Furthermore, SHR has continued to be selected as a constituent of the MSCI Japan ESG Select Leaders Index
and the FTSE4Good Index Series.
b. Climate change initiatives
Based on the recognition that environmental initiatives, as typified by climate change, are one of the key issues
in ESG-conscious investment management, SHR and SHAM have set "promoting of response to climatechange" as one of SHR's materiality, and consider various risks and opportunities associated with climatechange as one of the key points in its business strategy. In addition, SHAM has established a Sustainability
Committee as a decision-making body for sustainability, and has formulated policies and targets, and is
promoting efforts related to climate change mitigation and adaptation.
Furthermore, under the company-wide risk management system, SHR assesses risks and opportunities to its
business activities, evaluating their financial impact, and considering and implementing countermeasures,
assuming various situations that may occur in the future due to climate change.
SHR has set the following indicators and targets for addressing climate change. The medium-term targets for
GHG emission reductions have been SBTi (Note) validated.
GHG Emissions Reduction Target
・Medium term target (by 2030): Reduce 42% of Scope 1 and Scope 2 emissions of portfolio
compared to 2021
・Long term target (by 2050): Achieve net zero・Calculate and reduce Scope 3 emissions
Energy Consumption Reduction Target
・Reduce 10% energy consumption intensity of portfolio by 2028 compared to 2018
Portfolio Green Certification Target
・Maintain 70% or more of the portfolio with green certification

3

(Note)

SBT is a Science-based target for reducing GHG emissions that is certified by the SBTi, an international joint initiative
established in 2015 by CDP, the United Nations Global Compact, the World Resources Institute (WRI) and the World Wide Fundfor Nature (WWF). SBT is necessary to align GHG emission reduction targets with the levels required by the Paris Agreement(reduce the increase of global average temperature to 2 ℃ or less and make an effort to keep it to 1.5℃ compared to before theIndustrial Revolution).

(5) Overview of Business Performance and Distributions
Results in the fiscal period under review are operating revenue of 22,078 million yen, operating income of
5,896 million yen and ordinary income of 4,955 million yen, resulting in net income of 4,954 million yen. In
the fiscal period under review, the book value of "Garden City Shinagawa Gotenyama", for which a disposition
agreement was concluded on March 19, 2024, was reduced to the recoverable amount, and the amount of the
reduction was recorded as an impairment loss (4,008 million yen) in the operating expense category. In
addition, concerning cash distributions, based on the application of special tax treatment for investment
corporations (Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, as
amended) ("Special Taxation Measures Act")), SHR decided to distribute 4,955 million yen of theunappropriated retained earnings for the current fiscal period as distribution of retained earnings. In addition,
pursuant to the policy for "distribution of money in excess of profits" as set forth in Article 46, Paragraph 2 of
the Articles of Incorporation of SHR, SHR decided to distribute 4,223 million yen of allowance for temporary
difference adjustments ("ATA") as distribution in excess of earnings for the purpose of reflecting the impact of
the tax and accounting differences on distributions. Total distributions are 9,179 million yen.

4

2. Change in Total Number of Investment Units Issued and Outstanding
The following table sets forth the increase (/decrease) in unitholders' capital and the total number of investment
units issued and outstanding for the last five years from the end of the fiscal period under review.

Date

Unitholders' capital(million yen)

Event

Increase(Decrease)

Balance

Total number of investment
units issued and outstanding(units)Increase(Decrease)

Note

Balance

June 10, 2019

Public offering

37,162

147,351

501,500

4,263,591(Note 1)

July 9, 2019

Third-party allotment

1,858

149,21025,075

4,288,666(Note 2)

November 1, 2021

Public offering

11,652160,862

137,500

4,426,166(Note 3)

November 29, 2021

Third-party allotment

420

161,283

4,967

4,431,133(Note 4)

October 17, 2022

Cancellation－

161,283(49,651)

4,381,482(Note 5)

December 21,2023

Reversal of ATA

4

161,287－

4,381,482(Note 6)(Note 1) New investment units were issued at an issue price of 76,537 yen (with the issue amount being 74,103 yen) per unit through a public offering
to procure funds for the acquisition of new properties.
(Note 2) New investment units were issued at an issue amount of 74,103 yen per unit by way of third-party allotment, with the proceeds thereof
intended to be used for the partial repayment of the short-term loans that had been taken up to finance the acquisition of new properties.
(Note 3) New investment units were issued at an issue price of 87,574 yen (with the issue amount being 84,744 yen) per unit through a public offering
to procure funds for the acquisition of new properties.
(Note 4) New investment units were issued at an issue amount of 84,744 yen per unit by way of third-party allotment, with the proceeds thereof
intended to be used for the acquisition of new properties.
(Note 5) From June 16, 2022 to September 7, 2022, SHR acquired its own investment units through market purchases via the Tokyo Stock Exchange
based on a discretionary transaction contract with a securities company. As resolved at SHR's Board of Directors Meeting on September 30,
2022, all acquired investment units were canceled on October 17, 2022. In addition, funds related to the buyback of investment units werededucted from the capital surplus, thus there is no change in Unitholders' Capital.
s Board of Directors Meeting held on December 21, 2023, a resolution was passed for the reversal of ATA and incorporate it into the(Note 6) At SHR’unitholders' capital.

[Changes in Market Price of Investment Securities]
The following table sets forth the fiscal period high and low (closing price) on the Tokyo Stock Exchange Real
Estate Investment Trust Section on which SHR investment securities are listed.
15th fiscal period

16th fiscal period

17th fiscal period

18th fiscal period

19th Fiscal Period

From: Nov. 1, 2021
To: Apr. 30, 2022

From: May 1, 2022
To: Oct. 31, 2022

From: Nov. 1, 2022
To: Apr. 30, 2023

From: May 1, 2023
To: Oct. 31, 2023

From: Nov. 1, 2023
To: Apr.30, 2024

High (yen)86,70085,60081,50086,90084,700Low (yen)

73,60075,50068,60076,80073,200Fiscal period53. Statement of Cash Distributions
Distribution per unit for the fiscal period under review (the 19th fiscal period) is 2,095 yen. SHR applies the
special treatment of corporation taxation (Article 67-15 of the Special Taxation Measures Act), which deducts
the amount equivalent to distribution of earnings from taxable income of investment corporations, anddistribute 4,955 million yen of unappropriated retained earnings as distributions of earnings. In addition,
based on the policy of distribution of monies in excess of earnings as set forth in Article 46, Paragraph 2 of the
Articles of Incorporation, SHR has decided to distribute ATA of 4,223 million yen as distribution in excess ofearnings, taking into account the effect on distributions of tax and accounting differences, such as the recordingof impairment losses, etc. As a result, the total amount of distributions are 9,179 million yen.

Fiscal period
Total amount of unappropriatedretained earnings (thousandyen)
Amount of accumulated
earnings (thousand yen)
Total amount of cash
distribution (thousand yen)[Distribution per unit] (yen)Total amount of distribution of
earnings out of the total amountof cash distribution (thousand
yen)[Distribution of earnings perunit] (yen)Total amount of refund ofinvestment in capital out of thetotal amount of cash
distribution (thousand yen)[Amount of refund ofinvestment in capital per unit](yen)
Total distribution amount from
ATA out of total amount ofrefund of investment in capital(thousand yen)[Distribution amount from ATA
per unit out of amount of refundof investment in capital perunit] (yen)Total distribution amount from
distribution reducing
unitholders’capital for tax
purpose out of total amount ofrefund of investment in capital(thousand yen)[Distribution amount from
distribution reducing
unitholders’capital for tax
purpose out of amount ofrefund of investment incapital per unit] (yen)15th fiscal period 16th fiscal period 17th fiscal period 18th fiscal period 19h fiscal period
From: Nov. 1, 2021 From: May 1, 2022 From: Nov. 1, 2022 From: May 1, 2023 From: Nov. 1, 2023
To: Apr. 30, 2022 To: Oct. 31, 2022 To: Apr. 30, 2023 To: Oct. 31, 2023 To: Apr. 30, 2024
6,745,643

7,204,510

6,637,238

7,417,987

4,958,844

－

－

9,334

4,578

612

7,524,063

7,509,860

7,803,419

8,657,808

9,179,204[1,698][1,714][1,781][1,976][2,095]

7,524,063

7,509,860

7,733,315

7,409,086

4,955,456[1,698][1,714][1,765][1,691][1,131]－－

70,103

1,248,722

4,223,748

[－]

[－]

[16]

[285]

[964]

－

－

70,103

1,248,722

4,223,748

[－]

[－]

[16]

[285]

[964]

－

－

－

－

－

[－]

[－]

[－]

[－]

[－]

6

4. Future Operational Policy(1) Future Trends Outlook
It is expected that the Japanese economy will continue its gradual recovery, with an improving employment
and income environment with the effects of various policies. However, the downturn in the overseas economy
poses a risk of downward pressure on the Japanese economy amid the continued global monetary tightening
and concerns about the future of the Chinese economy. In addition, due attention should be paid to the effects
of inflation, the situation in the Middle East, and changes in financial capital markets.
In this environment, the employment and income environment has improved for the residential real estate
rental market, which is the base of daily life, and it is believed that the trend toward a return to central Tokyoand the separation of households will continue, but there are also increasing uncertainties such as inflation andrising interest rates, and SHR believes that these trends must be closely monitored.
Regarding offices, where business activities are based, demand remains strong in the five central wards ofTokyo, but there are concerns that vacancy rates will rise as secondary vacancies become apparent due tocontinued new supply and relocations, and that the disparity between areas and properties will widen due tosuperiority in terms of location. In addition, the largest new supply in recent years is expected to be in central
Osaka, and SHR believes that the impact of this supply will need to be closely monitored.
In the real estate transaction market, although there are concerns about cap rates rising due to higher interest
rates and soaring construction costs, SHR believes that the expected yields will remain at low levels for theforeseeable future, as the domestic financing environment remains favorable compared to overseas, and thewillingness of real estate investors and business companies to invest has not waned.
(2) Future Operational Policy and Challenges to Address
SHR will continue to focus on prime properties―high-quality residential properties and commercial properties
situated in strategic locations―as its core investment targets among other main investment targets. By
implementing growth strategies that take full advantage of the real estate development and operation
capabilities and other strengths of the Sekisui House Group, which has established an extensive track record ofdeveloping and operating residential properties and commercial properties, SHR will seek to secure stableearnings over the medium to long term and steady growth of its investment assets and thereby aim to maximize
unitholder value.
On the other hand, SHR will endeavor to expand its asset size by exploring investment opportunities throughthe initiatives of SHAM on its own.
Concerning main investment target areas in Japan for residential properties, SHR has set Greater Tokyoas
the core investment area with a focus on Tokyo 23 wards, which are believed to have a number of prime
properties that offer locations accommodating residents’needs as well as excellent basic functions as aresidence including comfort and safety and such and are expected to see strong leasing demand and supplies ofprime properties. In addition, SHR will invest in other major cities throughout Japan outside of Greater Tokyo
including government designated cities as well as their surrounding commutable areas, where networks of
Sekisui House and Six Sekisui House Real Estate Companies can be fully utilized.
SHR has set the three major metropolitan areas
with three large cities, namely the Tokyo 23 wards, Osaka
City and Nagoya City, all of which SHR has knowledge in the course of developments by Sekisui House, as
the core investment areas in Japan for commercial properties, with a focus on the three large cities, in which
SHR can expect stable management against the backdrop of solidified demand resulting from being bases fortenant companies' business activities. In addition, major cities throughout Japan other than the three major
metropolitan areas are set as investment areas.
SHR has executed a sponsor support agreement with Sekisui House. This agreement provides for utilization of
the urban redevelopment business track record and know-how of Sekisui House, allowing SHR to seek fromSekisui House property acquisition support for external growth (pipeline support). Specifically, such support
will (a) grant SHR preferential negotiation rights with regard to the sale of domestic real estate, etc. owned ordeveloped by Sekisui House, (b) provide SHR with information on real estate, etc. owned or developed inJapan by third parties, (c) provide SHR with warehousing functions, and (d) provide SHR with support for theredevelopment of owned properties.
Furthermore, SHR has concluded agreements concerning preferential negotiation rights (and others) with theSix Sekisui House Real Estate Companies. Thus, particularly with residential properties, SHR will be able toreceive support in acquiring properties for external growth, such as granting of preferential negotiation rights
regarding sale of domestic real estate, etc. owned or developed by the Six Sekisui House Real Estate
Companies.
(Note 1)

(Note 2)

(Note 1)

7

Sekisui House and Sekisui House Real Estate Grouppossess (a) property management skills based on theirrelationship with tenants, (b) know-how as a real estate developer to maintain/improve real estate value throughlarge-scale repair, renovation/value enhancement, redevelopment, etc., and (c) know-how on developing
various types of master leasing businesses. In relation to management of owned assets, by concluding a sponsor
support agreement with Sekisui House, SHR and SHAM can seek (i) technologies and know-how that
contribute to the improvement of tenant satisfaction or other factors, including energy efficiency andeco-friendliness, that contribute to the renovation/value enhancement of properties, (ii) personnel support,
including provision of know-how required for the operation of SHR, and (iii) support in areas such as
negotiation of master lease agreements with regard to commercial properties.
(Note 3)(Note 1) The "three major metropolitan areas" refer to "Greater Tokyo", the "Osaka area" and the "Nagoya area", where "Greater Tokyo" refers
to Tokyo, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture, the "Osaka area" refers to Osaka Prefecture, Kyoto
Prefecture, Hyogo Prefecture and Nara Prefecture and the "Nagoya area" refers to Aichi Prefecture. The same applies hereinafter.
(Note 2) "Six Sekisui House Real Estate Companies" is a collective name for Sekisui House Real Estate Tohoku, Ltd., Sekisui House Real EstateTokyo, Ltd., Sekisui House Real Estate Chubu, Ltd., Sekisui House Real Estate Kansai, Ltd., Sekisui House Real Estate
Chugoku&Shikoku, Ltd. and Sekisui House Real Estate Kyushu, Ltd., which are wholly-owned subsidiaries of Sekisui House Real
Estate Holdings, Ltd. ,which is a wholly-owned subsidiary of Sekisui House, and are core companies of real estate unit of the Sekisui
House Group operating nationwide. The same applies hereinafter.
(Note 3) "Sekisui House Real Estate Group" refers to a group of companies comprised of Six Sekisui House Real Estate Companies as the core,and of its subsidiaries and affiliates.

(3) Financial Strategy
SHR has adopted as its policy to conduct stable and sound financial operations in order to secure stableearnings over the medium to long term and enhance unitholder value. Specifically, the policy is to form strong
and stable business relationships with leading domestic financial institutions, centering on megabanks,bolstered by the creditworthiness of the sponsor, Sekisui House, and also to reduce refinancing risks and risksof fluctuations in interest rates by exploring the extension of borrowing periods and working to diversify dates
for repayment, etc., while pursuing the optimum balance between fixed-rate and floating-rate debts.
In addition, the LTV (total assets basis) policy was set at a cruising range of 45 to 50% for the time being, andthe policy is to manage conservatively while paying attention to securing sufficient funding capacity.
Furthermore, SHR will work to diversify its sources for direct and indirect financing, such as by issuinginvestment corporation bonds, in comprehensive consideration of the market environment, SHR's financial
standing and other factors, while continuing its endeavors for stable and sound financial operations.

85. Significant Subsequent Events(1) Acquisition of Asset
SHR acquired the following overseas real estate through investment in two LLCs located in the U.S. that own
overseas real estate.
a. Investment in overseas real estate holding corporations
Name

Location

SHR Boren Avenue Partners I, LLC

Investment price (Note)

Investment ratio

May 28, 2024

100.0%

164 mm USD(25,830 mm yen)

Delaware,
U.S.A.

SHR Boren Avenue Partners Ⅱ, LLC

Investment date

164 mm USD(25,830 mm yen)

(Note) Converted into yen at the exchange rate at the time of investment, 1USD = 156.95 JPY.

ⅱ. Real estate acquired by the above two overseas real estate holding corporations
Property name
The Ivey on Boren(Note 2)Acquisition priceType of use

Location

Residence

Seattle, Washington
U.S.A.

(Note 1)

328 mm USD(51,479 mm yen)

Acquisition dateSellerMay 29, 2024

NASH – Holland Boren& Lenora, LLC(Note 1) Converted into yen at the exchange rate at the time of acquisition, which is 1USD = 156.95 JPY.
(Note 2) The two overseas SPCs acquired ownership interest in all of the exclusively-owned portions of the 5th floor through the 44th floor
above ground and all of the exclusively-owned portions of the 1st floor through the 7th floor underground along with the land
equivalent to 19,007 sq/ft (1,765.75 ㎡) which is the total site 21,234 sq/ft (1,972.63 ㎡) multiplied by the ownership interest ratio(89.51%).

(2) Disposition of Assets
SHR concluded a contract on March 19, 2024 for the disposition of two real estate trust beneficiary interests.
The disposition was completed on May 1, 2024 and is scheduled to be completed on November 1, 2024, as
follows.
As a result of these dispositions, SHR expects to record a gain on disposition of real estate of 5,734 million yen
in the fiscal period ending October 31, 2024 (from May 1, 2024 to October 31, 2024) and 3,143 million yen in
the fiscal period ending April 30, 2025 (from November 1, 2024 to April 30, 2025).
Property name

Type of use(Planned)
disposition price(million yen)

Location(Planned)
disposition date

Buyer

(Note 1)

Garden City
Shinagawa Gotenyama(quasi co-ownership interest 49.0%)

Shinagawa-ku,
Tokyo

29,890
May 1,
2024(Note 2)

Hommachi Garden City
(Office building portion)(quasi co-ownershipinterest 65.0%)

Officebuilding

28,925
Osaka-shi,Osaka(quasi co-ownershipinterest 35.0%)

Godo Kaisha
Gotenyama
Capital1,
15,575 November
2024

Godo Kaisha
Pothos(Note 1) "(Planned) disposition price" is the sale and purchase price stated in the sale and purchase agreement (excluding consumption tax, local
consumption tax, commission for sales, and other various expenses; rounded down to the nearest million yen).
(Note 2) The amount equivalent to the loss on sale of real estate and other assets arising from such transfer is recorded as an impairment loss. For
details, please refer to "1. Financial Statements (6)Notes to Financial Statements 6 Notes to Statements of Income and Retained Earnings*3 Impairment losses" below.

(Reference Information)(1) Acquisition of Asset
SHR acquired one domestic residential property on May 31, 2024 as follows.
Property name

Type of use

Acquisition price(million yen)

Location

Acquisition dateSellerMay 31, 2024

Taisei-Yuraku
Real Estate Co.,Ltd.

(Note)

Esty Maison
Minamigyotoku

Residence

Ichikawa-shi,
Chiba

950

9

(Note) "Acquisition price" is the sale and purchase price stated in the sale and purchase agreement (excluding consumption tax, local
consumption tax, commission for sales, and other various expenses; rounded down to the nearest million yen). The same applies
hereinafter.

(2) Disposition of Asset
SHR decided on the disposition of one office building (the "Disposition of Asset") and executed a sale andpurchase agreement as of March 29, 2023 as follows. The Disposition of Asset is scheduled to be carried out in
10 equal installments from the end of October 2023, with 10/100 of the ownership share to be disposed on eachplanned disposition date. As of the date of this document, the first disposition and second disposition have been
executed, and a gain on sale of real estate properties is expected to be recorded during each calculation period
as follows.
Property name

Type of use

Total disposition
Plannedprice (million yen) disposition date

Location(Note 1)

Gotenyama SH Building Office building Shinagawa-ku, Tokyo

70,000Buyer(Note 2)stated as below

TIS Inc.

(Unit: million yen)
Planned disposition date

Planned disposition price(Note 1)Gain on disposition(expected) (Note 3)(Note 2)

Calculation period3

End of October 2024

7,000 (10%)

2,095Ending October 2024 (FP 20)

4End of April 2025

7,000 (10%)

2,106Ending April 2025 (FP 21)

5

End of October 2025

7,000 (10%)

2,117Ending October 2025 (FP 22)

6

End of April 2026

7,000 (10%)

2,127Ending April 2026 (FP 23)

7

End of October 2026

7,000 (10%)

2,142Ending October 2026 (FP 24)

8

End of April 2027

7,000 (10%)

2,156Ending April 2027 (FP 25)

9End of October 2027

7,000 (10%)

2,170Ending October 2027 (FP 26)

10

End of April 2028

7,000 (10%)

2,185Ending April 2028 (FP 27)(Note 1) "Total disposition price" and "Planned disposition price" is the sale and purchase price stated in the sale and purchase agreement (excluding
consumption tax, local consumption tax, commission for sales, and other various expenses; rounded down to the nearest million yen).
(Note 2) In the event that the "planned disposition date" is not a business day, the said date will be the immediately preceding business day.
(Note 3) "Gain on disposition (expected)" is the approximate value to be recorded on each planned disposition date as of the date of this document andis subject to change.

(3) Changes of the Management Guideline
SHAM resolved at a meeting of its Board of Directors held on May 28, 2024, to make changes to its
investment policy and management structure for overseas real estate investment in conjunction with theacquisition of assets in the U.S., as announced in the "Notice Concerning Investment in an Overseas Real
Estate Holding Corporation (The Ivey on Boren)" separately released on the same date. In addition, SHAM has
resolved to change part of its Management Guideline with the aim of building a portfolio with a focus more on
residential properties.
The major changes for the Portfolio Development Policy are as follows (changes are indicated by underline).
a. Investment ratio by asset category(After change)
Main investment target assets

Asset type

Portfolio investment ratio(acquisition price basis)

Residential properties

Residence

70% - 100%Commercial properties, etc.

Office building, etc.

0% - 30%10(Before change)
Main investment target assets

Asset type

Portfolio investment ratio(acquisition price basis)

Medium term target
investment ratio

Residential
Properties

Residence

50% - 80%

Approx. 65%

Office building

15% - 45%

Approx. 30%

0% - 15%

Approx. 5%

Commercial properties, etc.

Hotel
Retail and otherproperties

b. Investment ratio for residential properties by geographical area
(After change)
Category

Investment ratio(acquisition price basis)

Specific area

Including overseas

Domestic(a)Tokyo
Greater Tokyo(b)Kanagawa Prefecture≪priority(c)Chiba Prefecture
investment area≫(d)Saitama Prefecture

70% or more
70% or more

Major cities(a)Designated cities, etc.
(b)Commutable areas of (a) above

U.S.

－

Overseas

Only domestic

30% or lower－

30% or lower(Before change)
Category

Specific area

Greater Tokyo≪priority investment area≫

Major cities

Investment ratio (acquisition price basis)(a)Tokyo(b)Kanagawa Prefecture(c)Chiba Prefecture(d)Saitama Prefecture

70% or more(a)Designated cities, etc.
(b)Commutable areas of (a) above

Less than 30%(4) Borrowing of Funds
On May 31, 2024, SHR decided to undertake new borrowings in order to repay short-term borrowings totaling
3,000 million yen that was due on the same date, as follows.
(Floating Interest Rate Borrowing)
Lenders(Note 1)Category

Shortterm

Borrowingamount(mm yen)

MUFG Bank, Ltd.

922

Mizuho Bank, Ltd.

735

Sumitomo Mitsui
Banking Corporation

675

Sumitomo Mitsui
Trust Bank, Limited

383

Mizuho Trust &Banking Co., Ltd.

285

Total

3,000

Interest rate
(Note 2) (Note 3)(Note 4)

Drawdown
date

Borrowing
methodRepayment
date(Note 5)

Repayment
method(Note 6)

Security

May 30, 2025

Lump-sum
repayment
at maturity

UnsecuredandUnguaranteed

－

－

－

Borrowingbased onindividual loan
agreement,
dated

Base rate (JBA
1-month Japanese
Yen TIBOR) plus
0.170%

May 31, 2024

－

－

11

May 28, 2024.
The lenders
under the loan
agreement are
as indicated to
the left of thistable.

－

(Note 1)(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

MUFG Bank, Ltd., Mizuho Bank, Ltd., and Sumitomo Mitsui Banking Corporation are arrangers of the above borrowings.
The borrowing expenses and other charge payable to the lenders are not included.
The base rate applicable to the calculation period for the interest payable on an interest payment date shall be the Japanese Yen TIBOR (Tokyo
Inter Bank Offered Rate), corresponding to the calculation period of the interest, two business days prior to the immediately preceding relevantinterest payment date. The Japanese Yen TIBOR is published by the Japanese Bankers Association (JBA) TIBOR Administration. The base rate is
subject to review every interest payment date. Where no rate that corresponds to the interest calculation period exists, the base rate shall be thatwhich corresponds to the concerned period calculated based on the method provided for in the relevant individual loan agreement. For changes inthe base rate (being the Japanese Yen TIBOR published by JBA), please check the website of JBA TIBOR Administration(https://www.jbatibor.or.jp/english/rate/).
The first interest payment date will be the last day of June 2024. Subsequent interest payment dates will be the last day of every month and theprincipal repayment date. Where the relevant date is not a business day, such date will be the immediately following business day or (if theimmediately following business day falls into the next calendar month) the immediately preceding business day.
Where the repayment date is not a business day, such date will be the immediately following business day or (if the immediately following
business day falls in the next calendar month) the immediately preceding business day.
SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of the borrowings (in whole or inpart), in the period between the drawdown date and the repayment date.

On July 11, 2024, SHR decided to undertake new borrowings (7,000 million yen) for use as the repayment
funds of long-term borrowings (3,000 million yen) which was due on the same date and redemption of the
Sekisui House Reit, Inc. Third Series Unsecured Investment Corporation Bonds (with pari passu clause among
specified investment corporation bonds) (Green Bonds) (4,000 million yen), which is due for redemption on
the same date as follows.
(Fixed Interest Rate Borrowing)
Category

Lenders

MUFG Bank, Ltd.

Borrowingamount(mm yen)Interest rate
(Note 1) (Note 2)

Drawdown
date

Mizuho Bank, Ltd.

960

Sumitomo Mitsui
Banking Corporation

880

1.125%

3,000

－

Total

Repayment
date(Note 3)

Repayment
method(Note 4)

Security

August 30, 2030

Lump-sum
repayment
at maturity

UnsecuredandUnguaranteed

－

－

－

Borrowingbased onindividual loan
agreement,
dated July 8,
2024,

1,160
1.175%

Long
term

Borrowing
methodJuly 11, 2024

The lenders
under the loan
agreement are
as indicated to
the left of thistable.

－－(Note 1)

The first interest payment date will be the last day of August 2024. Subsequent interest payment dates will be the last day of every six months andthe principal repayment date. Where the relevant date is not a business day, such date will be the immediately following business day or (if theimmediately following business day falls into the next calendar month) the immediately preceding business day.

(Note 2)The borrowing expenses and other charge payable to the lenders are not included.

(Note 3)

Where the repayment date is not a business day, such date will be the immediately following business day or (if the immediately following
business day falls in the next calendar month) the immediately preceding business day.

(Note 4)

SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of the borrowings (in whole orin part), in the period between the drawdown date and the repayment date.

12

(Floating Interest Rate Borrowing (Jointly-Managed Designated Money Trust / Green Loan))
Lenders(Note 1)Category

Long
term

Mitsubishi UFJ Trustand Banking
Corporation

Borrowingamount(mm yen)

4,000

Interest rate
(Note 2) (Note 3)(Note 4)

Base rate (JBA
3-month Japanese
Yen TIBOR) plus
0.350%

DrawdowndateJuly 11, 2024

Borrowing
methodBorrowingbased onindividual loan
agreement,
dated July 8,2024 from the
Jointly-Managed
DesignatedMoney Trust
formed by thelender as
indicated to theleft of thistable.

Repayment
Date(Note 5)

Repayment
method(Note 6)

Security

August 31,
2032

Lump-sum
repayment
at maturity

UnsecuredandUnguaranteed

－

－

－

The lenders
under the loan
agreement is asindicated to theleft of thistable.
Total(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)

4,000

－

－

－

The borrowing is made through the Jointly-Managed Designated Money Trust formed by Mitsubishi UFJ Trust and Banking Corporation.
The borrowing expenses and other charge payable to the lenders are not included.
The base rate applicable to the calculation period for the interest payable on an interest payment date shall be the Japanese Yen TIBOR (Tokyo
Inter Bank Offered Rate), corresponding to the calculation period of the interest, two business days prior to the immediately preceding relevantinterest payment date. The Japanese Yen TIBOR is published by the Japanese Bankers Association (JBA) TIBOR Administration. The base rate is
subject to review every interest payment date. Where no rate that corresponds to the interest calculation period exists, the base rate shall be thatwhich corresponds to the concerned period calculated based on the method provided for in the relevant individual loan agreement. For changes inthe base rate (being the Japanese Yen TIBOR published by JBA), please check the website of JBA TIBOR Administration(https://www.jbatibor.or.jp/english/rate/).
The first interest payment date will be the last day of August 2024. Subsequent interest payment dates will be the last day of every three months
and the principal repayment date. Where the relevant date is not a business day, such date will be the immediately following business day or (if theimmediately following business day falls into the next calendar month) the immediately preceding business day.
Where the repayment date is not a business day, such date will be the immediately following business day or (if the immediately following
business day falls in the next calendar month) the immediately preceding business day.
SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of the borrowings (in whole or inpart), in the period between the drawdown date and the repayment date.

13

Outline of the Investment Corporation
1. Status of Capital
Fiscal period

As of the end of As of the end of As of the end of As of the end of As of the end of
15th fiscal period 16th fiscal period 17th fiscal period 18th fiscal period 19th fiscal period(Apr. 30, 2022)(Oct. 31, 2022)(Apr. 30, 2023)(Oct. 31, 2023)(Apr. 30, 2024)

Total number of investment units
authorized (units)
Total number of investment units
issued and outstanding (units)

20,000,000

20,000,000

20,000,000

20,000,000

20,000,000

4,431,133

4,381,482

4,381,482

4,381,482

4,381,482

Unitholders’capital (million yen)

161,283

161,283

161,283

161,283

161,287

Number of unitholders (persons)

20,87621,154

23,27022,86425,455

2. Matters Concerning Investment Units
Of the unitholders as of the end of the fiscal period under review, the following are the top ten unitholders interms of investment unitholding ratio.

Number ofunits owned(units)Name

Custody Bank of Japan, Ltd. (Trust Account)

Percentage of
owned units tototal units issued
and outstanding(%)

1,190,827

27.18

The Master Trust Bank of Japan, Ltd. (Trust Account)

745,401

17.01

The Nomura Trust and Banking Co., Ltd. (Investment Trust Account)

202,839

4.63

Sekisui House, Ltd.

200,750

4.58

THE NOMURA TRUST AND BANKING CO., LTD. AS THE TRUSTEE OF
REPURCHASE AGREEMENT MOTHER FUND

81,1501.85

STATE STREET BANK WEST CLIENT - TREATY 505234

67,892

1.55

STATE STREET BANK AND TRUST COMPANY 505103

62,311

1.42

SSBTC CLIENT OMNIBUS ACCOUNT

59,207

1.35

JP MORGAN CHASE BANK 385771

47,1081.08

Mizuho Securities Co., Ltd.

43,8251.00

2,701,310

61.65

Total

(Note) Percentage of owned units to total units issued and outstanding is rounded to the nearest second decimal place.

143. Matters Concerning Directors, etc.
(1) Name and other information of the executive director, supervisory directors, and an independent auditor
The following table sets forth information on the executive director, supervisory directors, and an independent
auditor of SHR.

Position
Executive
Director

Supervisor
Director

Name

Atsuhiro Kida

Director,
Sekisui House Asset Management, Ltd.

Yu YadaLawyer, HIFUMI Law

Rei Yamashita
Ayako Sugiura

Independent
AuditorKey concurrently held position, etc.

Ernst & Young
ShinNihon LLC

Total amount of compensationfor each position during period(thousand yen)―
1,800

Certified Public Accountant, Rei Yamashita
Certified Public Accountant Office
Real estate appraiser,
SUGIURA APPRAISAL CO., LTD.
―

1,800
900
18,600(Note 2) (Note3)(Note 1) None of the executive director or supervisory directors owns SHR investment units in their own name or in the name of another person. In
addition, supervisory directors may be officers of other corporations other than those stated above, but none of such corporations, including
those stated above, has vested interest in SHR.
(Note 2) The total amount of compensation for the independent auditor, as stated above, is an approximation and includes compensation for auditing
matters related to English financial statements.
(Note 3) During the period under review, no work for remuneration based on non-audit services occurred. The amount of remuneration based on
non-audit services to persons belonging to the same network as the accounting auditor is 9,240 thousand yen.

(2) Policy for determining whether to dismiss or refuse the reappointment of independent auditor
Dismissal of the independent auditor is subject to consideration at a meeting of the board of directors of SHR inaccordance with the provisions of the Act on Investment Trusts and Investment Corporations (the "Investment
Trusts Act"). Refusal of reappointment of the independent auditor is also subject to consideration at a meetingof the board of directors of SHR by taking into account the quality of audits, amount of audit fee and various
other circumstances in a comprehensive manner.

15

4. Matters Concerning the Director’s Liability Insurance Contract
The directors’liability insurance contract concluded by SHR is as follows.
Scope of insured person

Overview of the contents of the Director’s Liability Insurance Contract(Overview of Insured Events Subject to Compensation)
SHR concluded a directors' liability insurance contract with an insurance company as set
forth in Article 116-3(1) of the Investment Trust Act and covers any damage that may
arise when the insured assumes liability for the execution of its duties or receives a claim
for the pursuit of such liability.

All Executive Directors andSupervisory Directors(Ratio of Insurance Premiums to be Borne)
All insurance premiums for all insured persons are borne by SHR(Measures to Ensure that the Appropriateness of the Execution of Duties by Directors, etc.
is not Impaired)
Up to 100 thousand yen for each insured person and up to 1 million yen for each series of
liability are set as the immunity amount.

5. Asset Management Company, Asset Custodian and Administrative AgentsThe following table sets forth information on the asset management company, asset custodian andadministrative agents of SHR as of the date of this document.
Entrustment category

Name

Asset Management Company

Sekisui House Asset Management, Ltd.

Asset Custodian

Mitsubishi UFJ Trust and Banking Corporation

Administrative Agent (Transfer Agent)Mizuho Trust & Banking Co., Ltd.

Administrative Agent (Administrative Agent for Operation of
Administrative Instruments)
Administrative Agent (Administrative Agent for Investment
Corporation Bonds)

Mitsubishi UFJ Trust and Banking Corporation
MUFG Bank, Ltd.

16

Condition of Investment Assets
1. Composition of Assets of the Investment Corporation
The following table sets forth the composition of assets of SHR as of the end of the fiscal period under review.
As of the end of 18th fiscal period As of the end of 19th fiscal period(Oct. 31, 2023)(Apr. 30, 2024)
Type of asset

Asset category

Geographical area, etc.

Total amountheld(million yen)

Ratio to total
assets(%)

Total amountheld(million yen)

Ratio to total
assets(%)(Note 1)

(Note 2)

(Note 1)

(Note 2)

Greater Tokyo

208,67636.6

243,538

43.1

Other areas

54,498

9.6

54,576

9.7

Three major
metropolitan areas

267,81047.0

211,238

37.4

―

―

―

―

530,98593.2

509,352

90.1

Silent partnership equity interests (Note 4)

668

0.1

649

0.1

Deposits and other assets

37,824

6.6

55,029

9.7

Total amount of assets

569,478100.0

565,030

100.0

Residential
properties
Real estate intrust
Commercial
properties, etc.

Other areas

Total of real estate in trust(Note 1) "Total amount held" is recorded on the balance sheet the carrying amount (or, for "real estate in trust", the book value after depreciation andimpairment loss) as of the end of each fiscal period, rounded down to the nearest million yen.
(Note 2) Figures for "Ratio to total assets" have been rounded to the nearest first decimal place.
(Note 3) SHR does not own any overseas real estate, etc. as of the end of the fiscal period under review.
(Note 4) This is the equity interest in a silent partnership with Godo Kaisha Gemini1 and Godo Kaisha Gemini2 as the business operator.

172. Major Portfolio Assets
The following table sets forth an overview of the major portfolio assets (top ten properties by book value at theend of period) of SHR as of the end of the fiscal period under review.

Name ofreal estate, etc.

Book value
at the end of
period(million yen)

Leasable area(m )Leased area(m )(Note 2)

(Note 3)2

2

Occupancy
rate(%)(Note 4)(Note 1)As apercentage of
total propertyrelated
Usage type
operatingrevenue(%) (Note 5)
Office6.2
building
Office8.5
building
Office6.4
building
Office5.9
building
Office8.9
building

Akasaka Garden City (Note 6)

49,893

21,735.42

20,718.33

95.3

Hommachi Minami Garden City

41,56429,657.53

29,283.17

98.7

Gotenyama SH Building (Note 7)

39,12615,999.98

15,999.98

100.0

35,52317,006.94

17,006.94

100.0

29,87418,903.22

16,419.99

86.9

Prime Maison EGOTANOMORI

10,82529,048.95

28,592.25

98.4

4.1

ResidencePrime Maison Yushima

10,235

6,671.59

6,417.68

96.2

0.2

ResidencePrime Maison Nakameguro

10,126

6,033.98

5,713.46

94.7

1.5

Residence

Esty Maison Ojima

8,129

9,905.97

9,575.62

96.7

1.7

ResidencePrime Maison Shirokanedai Tower

7,827

6,772.89

6,567.62

97.0

1.6

Residence

Total

243,126

161,736.47

156,295.04

96.6

45.2

―

Hommachi Garden City
(Office building portion) (Note 8)
Garden City Shinagawa Gotenyama(Note 9)(Note 1) "Book value at the end of period" refers to the depreciated book value of each property as of the end of the fiscal period under review,rounded down to the nearest million yen. As for "Garden City Shinagawa Gotenyama", the amount is after recording an impairment loss dueto the disposition. The same applies hereinafter.
(Note 2) "Leasable area" refers to the floor area presumably available for leasing based on the lease agreement or building drawing, etc. for each
property that is valid as of the end of the fiscal period under review, rounded down to the second decimal place. In cases where the properties
SHR owns are co-ownership interest or quasi co-ownership interest of trust beneficiary interests in real estate for respective properties, thefigure indicates the value obtained by multiplying the leasable area of real estate or real estate in trust (or the leasable area of exclusively
owned portions for properties under compartmentalized ownership interest) by the ratio of the ownership interest owned by SHR or trustees.
The same applies hereinafter.
(Note 3) "Leased area" refers to the sum total of the leased area indicated in the respective lease agreements, which are valid as of the end of the fiscal
period under review, with the end tenants for each of the properties or the leased area based on building drawings. However, the leasable areaof each property is indicated in case fixed-rent type master lease agreements have been concluded with the master lease companies, regardlessof whether lease agreements have been concluded with the end tenants. For "Akasaka Garden City", "Gotenyama SH Building", and "Garden
City Shinagawa Gotenyama" the figures indicate the area corresponding to the portions owned by SHR. The same applies hereinafter.
(Note 4) "Occupancy rate" refers to the ratio of leased area to leasable area of each property as of the end of the fiscal period under review, rounded to
the nearest first decimal place. The figure indicated in the "Total" column indicates the ratio of the sum of leased area of each property to thesum total of leasable area of each property, rounded to the nearest first decimal place.
(Note 5) Figures under the heading "As a percentage of total property-related operating revenue" indicate the ratio of property-related operating
revenue of each property for the fiscal period under review to total property-related operating revenue of each property of SHR’s entire
portfolio for the fiscal period under review, rounded to the nearest first decimal place.
(Note 6) For "Akasaka Garden City", as of June 10, 2019, SHR owned 65.45% quasi co-ownership interest of trust beneficiary interest in real estate
regarding the compartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor under ground through 4th floor
above ground and 11th floor through 19th floor above ground of the building, as well as the accompanying right of site (ratio of right of site:662,768/1,000,000 (or approximately 66.3%)). As of November 1, 2021, SHR acquired the trust beneficiary interest in all of the
exclusively-owned portions of the 5th floor through 9th floor above ground of the building, as well as the accompanying right of site (ratio ofright of site: 273,490/1,000,000 (or approximately 27.3%)) and in 96.05% of co-ownership of all of the exclusively-owned portions of the10th floor above ground of the building, as well as the accompanying right of site (ratio of right of site: 54,698/1,000,000 (or approximately
5.5%)), and the figures indicate the value corresponding to the portions owned by SHR. The same applies hereinafter.
(Note 7) As of April 30, 2024, SHR has disposed of 20/100 (20.0%) of the quasi co-ownership interest in "Gotenyama SH Building", and owned a
80.0% quasi co-ownership interest in a real estate trust beneficiary interest in the property. Therefore, the amount corresponding to the portion
owned by SHR is stated. The same applies hereinafter.
(Note 8) "Hommachi Garden City" comprises the portions used as office building and retail property ("Hommachi Garden City (Office building
portion)") and the portions used as a hotel ("Hommachi Garden City (Hotel portion)".) In this document, the overview and other information
regarding the property may be described separately for the Office building portion and the Hotel portion. The same applies hereinafter. SHR
disposed of "Hommachi Garden City (Hotel portion)" as of April 30, 2024.

18

(Note 9) As of April 30, 2024, SHR has already disposed 51/100 (51.0%) of its quasi co-ownership interest in "Garden City Shinagawa Gotenyama" ininstallments, and owns 49.0% of the quasi co-ownership interest in the real estate trust beneficiary right for this property. Therefore, theamount corresponding to the portion owned by SHR is stated. The same applies hereinafter.

19

3. Details of Assets (Real Estate, etc.) in the Portfolio
The following table lists an overview of the properties owned by SHR as of the end of the fiscal period underreview.
Usage
type

Property
No.
(Note 1)Name ofreal estate, etc.

Location(Note 2)

R-001

Esty Maison Ginza

Chuo-ku, Tokyo

R-002

Esty Maison Azabunagasaka

Minato-ku, Tokyo

R-003

Esty Maison Ebisu II

R-004

Esty Maison Ebisu

R-005

Esty Maison Kanda

R-006

Esty Maison Kitashinjuku

R-007

Esty Maison Asakusakomagata

Taito-ku, Tokyo

R-008

Esty Maison Kawasaki

Kawasaki-shi,
Kanagawa

R-010

Esty Maison Kameido

Koto-ku, Tokyo

R-011

Esty Maison Meguro

R-012

Esty Maison Sugamo

R-013

Esty Maison Kyobashi

Osaka-shi, Osaka

R-014

Esty Maison Hakuraku

Yokohama-shi,
Kanagawa

R-015

Esty Maison Minamihorie

Osaka-shi, Osaka

R-016

Esty Maison Gotanda (Note 4)

R-017

Esty Maison Oisendaizaka

R-018

Esty Maison
Shinagawa Seaside

Shinagawa-ku,
Tokyo
Shinagawa-ku,
Tokyo
Shinagawa-ku,
Tokyo

R-019

Esty Maison Minamiazabu

Minato-ku, Tokyo

R-021

Esty Maison Kawasaki II

Kawasaki-shi,
Kanagawa

R-022

Esty Maison Azabujuban

Minato-ku, Tokyo

R-023

Esty Maison Itabashihoncho

R-027

Esty Maison
Musashikoyama (Note 5)

R-028

Esty Maison Sendagi (Note 6)

R-030

Esty Maison Hakatahigashi

Residence

Shibuya-ku,
TokyoShibuya-ku,
Tokyo
Chiyoda-ku,
TokyoShinjuku-ku,
Tokyo

Meguro-ku,
TokyoToshima-ku,
Tokyo

Itabashi-ku,
Tokyo
Shinagawa-ku,
TokyoBunkyo-ku,
TokyoFukuoka-shi,
Fukuoka

20Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
6,577

8,200

1,756

2,030

2,020

2,520

913

989

1,522

2,000

1,505

1,970

2,043

2,690

2,319

3,120

1,442

1,980

1,055

1,420

1,574

2,000

2,836

3,280

870

1,020

1,099

1,190

3,003

3,820

2,657

3,220

2,101

2,610

1,285

1,460

1,840

2,510

2,698

3,140

954

1,070

988

1,250

666

842

2,128

2,870

Usagetype

Property
No.
(Note 1)Name ofreal estate, etc.

R-033

Prime Maison Musashinonomori

Kodaira-shi,
Tokyo

R-034

Prime Maison Higashisakura

Nagoya-shi, Aichi

R-035

Prime Maison Kayabakoen

Nagoya-shi, Aichi

R-036

Esty Maison Sangenjaya II

R-037

Esty Maison Itabashi C6

R-038

Sha Maison Stage
Hakata (Note 7)

R-039

Esty Maison Kinshicho

R-040

Esty Maison Musashikoganei

R-041

Prime Maison Gokiso

Nagoya-shi, Aichi

R-042

Prime Maison Yuhigaoka

Osaka-shi, Osaka

R-043

Prime Maison Kitatanabe

Osaka-shi, Osaka

R-044

Prime Maison Momochihama

Fukuoka-shi,
Fukuoka

R-045

Esty Maison Akihabara

Taito-ku, Tokyo

R-046

Esty Maison Sasazuka

Shibuya-ku,
Tokyo

R-047

Prime Maison Ginza East

Chuo-ku, Tokyo

R-048

Prime Maison Takami

Nagoya-shi, Aichi

R-049

Prime Maison Yadaminami

Nagoya-shi, Aichi

R-050

Prime Maison Teriha

Fukuoka-shi,
Fukuoka

R-051

Esty Maison Higashishirakabe

Nagoya-shi, Aichi

R-052

Esty Maison Sengoku

R-053

Esty Maison Daizawa

R-054

Esty Maison Togoshi

R-055

Esty Maison Nishitemma

R-056

Esty Maison Shirokanedai

R-057

Esty Maison Higashishinjuku

R-058

Esty Maison Motoazabu

Residence

Location(Note 2)

Setagaya-ku,
Tokyo
Itabashi-ku,
TokyoFukuoka-shi,
Fukuoka
Sumida-ku,
Tokyo
Koganei-shi,Tokyo

Bunkyo-ku,
Tokyo
Setagaya-ku,
Tokyo
Shinagawa-ku,
Tokyo
Osaka-shi, Osaka
Shinagawa-ku,
TokyoShinjuku-ku,
Tokyo
Minato-ku, Tokyo

21

Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
1,878

2,420

1,514

1,820

801

987

749

986

2,403

3,030

2,228

2,810

1,172

1,510

1,722

2,230

1,888

2,280

899

1,200

598

768

1,955

2,360

1,860

2,230

3,345

3,890

6,099

7,400

1,033

1,180

832

964

1,138

1,380

1,671

1,880

1,315

1,520

2,199

2,650

1,690

2,170

1,568

1,780

2,360

3,240

1,573

2,200

1,493

2,060

Usagetype

Property
No.
(Note 1)Name ofreal estate, etc.

Location(Note 2)Meguro-ku,
TokyoShinagawa-ku,
Tokyo
Nakano-ku,
TokyoNakano-ku,
TokyoNakano-ku,
TokyoNakano-ku,
Tokyo
Suginami-ku,
Tokyo
Sumida-ku,
Tokyo

R-059

Esty Maison Toritsudaigaku

R-060

Esty Maison
Musashikoyama II

R-061

Esty Maison Nakano

R-062

Esty Maison Shinnakano

R-063

Esty Maison Nakanofujimicho

R-064

Esty Maison Tetsugakudo

R-065

Esty Maison Koenji

R-066

Esty Maison Oshiage

R-067

Esty Maison Akabane

Kita-ku, Tokyo

R-068

Esty Maison Oji

Kita-ku, Tokyo

R-069

Prime Maison Waseda

Shinjuku-ku,
Tokyo

R-070

Prime Maison Hatchobori

Chuo-ku, Tokyo

R-071

Prime Maison Jimbocho

R-072

Prime Maison
Gotenyama East

R-073

Sha Maison Stage Akihabara

R-074

Esty Maison Aoi

R-075

Esty Maison Yakuin

R-076

Esty Maison Kinshicho II

R-077

Esty Maison Ojima

Koto-ku, Tokyo

R-078

Prime Maison Fujimidai

Nagoya-shi, Aichi

R-079

Esty Maison Tsurumai

Nagoya-shi, Aichi

R-080

Prime Maison Morishita

Koto-ku, Tokyo

R-081

Prime Maison Shinagawa

R-082

Prime Maison Odorikoen

R-083

Prime Maison Minami 2-jo

R-084

Prime Maison Kamokamogawa

Residence

Chiyoda-ku,
Tokyo
Shinagawa-ku,
Tokyo
Chiyoda-ku,
Tokyo
Nagoya-shi, Aichi
Fukuoka-shi,
Fukuoka
Sumida-ku,
Tokyo

Shinagawa-ku,
Tokyo
Sapporo-shi,
Hokkaido
Sapporo-shi,
Hokkaido
Sapporo-shi,
Hokkaido

22

Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
878

1,120

975

1,230

1,859

2,200

962

1,130

943

1,120

1,082

1,350

1,113

1,450

2,345

2,980

3,168

3,810

1,530

1,930

1,471

2,040

1,340

1,750

1,820

2,310

2,862

3,630

580

659

2,304

2,640

2,511

2,650

7,732

10,8008,12912,200

2,112

2,290

4,441

5,080

1,781

2,260

1,846

2,280

2,969

3,350

1,758

2,120

1,131

1,340

Usagetype

Property
No.
(Note 1)Name ofreal estate, etc.

Location(Note 2)

R-085

Prime Maison
Central Park(Note 8)

R-086

Sha Maison Stage Yahiro

R-087

Prime Maison Ebisu

R-089

Esty Maison Unomori

R-091

Sha Maison Stage Hino

Hino-shi, Tokyo

R-092

Prime Maison
Yokohama Nihon-odori

Yokohama-shi,
Kanagawa

R-093

Kobe Women’s Student Housing

Kobe-shi, Hyogo

R-094

Prime Maison Shibuya

R-095

Prime Maison Hatsudai

R-096

Esty Maison Uemachidai

R-098
R-099

Prime Maison
Shirokane-takanawa
Prime Maison
Ichigayayamabushicho

R-100

Esty Maison Morishita

R-101

Prime Maison
Shirokanedai Tower

R-102

Prime Maison Otsuka

R-103

Prime Maison Asakusabashi

R-104

Prime Maison Daikanyama

Residence

R-105
R-106

Prime Maison
Gotenyama West
Esty Maison
Toyosu Residence (Note 9)

R-108

Esty Maison Ijiri

R-109

Prime Maison Mitatsunamachi

R-110

Prime Maison Hongo

R-111

Prime Maison Kuramae

R-112

Esty Maison Yokohamaaobadai (Note 10)

R-113

Esty Maison Shizuoka Takajo

R-114

Sha Maison Stage Hirose-dori

Fukuoka-shi,
Fukuoka
Sumida-ku,
TokyoShibuya-ku,
TokyoYokkaichi-shi,
MieShibuya-ku,
TokyoShibuya-ku,
Tokyo
Osaka-shi, Osaka
Minato-ku, Tokyo
Shinjuku-ku,
Tokyo
Sumida-ku,
Tokyo
Shinagawa-ku,
TokyoToshima-ku,
Tokyo
Taito-ku, Tokyo
Meguro-ku,
TokyoShinagawa-ku,
Tokyo
Koto-ku, Tokyo
Fukuoka-shi,
FukuokaMinato-ku,
TokyoBunkyo-ku,
Tokyo
Taito-ku,
Tokyo
Yokohama-shi,
Kanagawa
Shizuoka-shi,
Shizuoka
Sendai-shi,
Miyagi23

Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
2,335

2,576

1,785

2,160

4,197

5,850

731

836

1,345

1,630

4,484

5,270

5,065

6,360

2,355

2,800

2,859

3,420

1,034

1,270

4,724

5,530

4,041

4,390

618

742

7,827

11,200

3,614

4,770

1,650

2,130

2,486

3,490

3,376

5,000

5,524

7,600

436

441

2,021

2,540

2,565

3,050

2,150

2,600

2,967

3,660

729

643

964

972

Usagetype

Property
No.
(Note 1)Name ofreal estate, etc.

R-115

Esty Maison
HIGASHIBETSUIN

R-116

Esty Maison Kayaba

R-117

Esty Maison
SHIRAKABEMINAMI

R-118

Prime Maison Shimokitazawa

R-119

Prime Maison Meguro

R-120

Prime Maison Ryogoku

R-121

Prime Maison Nakameguro

R-122

Prime Maison Itabashi

R-123

Prime Maison
EGOTANOMORI(Note 11)

R-124

Prime Maison Waseda dori

R-125

Esty Maison Noborito

R-126

Esty Maison Omori

R-127

Esty Maison Monzennakacho

R-128

Esty Maison Akabane Ⅱ

R-129

Prime Maison Yushima

R-130

Prime Maison Nakanosakaue

R-131

Prime Maison Honancho

R-132

Prime Maison Monzennakacho

R-133

Prime Maison Nishiwaseda

R-134

Prime Maison Asakusa EAST

R-135

Prime Maison Sakurashinmachi

Residence

Location(Note 2)

Nagoya-shi,
Aichi
Nagoya-shi,
Aichi
Nagoya-shi,
Aichi
Setagaya-ku,
Tokyo
Meguro-ku,
Tokyo
Sumida-ku,
Tokyo
Meguro-ku,
TokyoItabashi-ku,
Tokyo
Nakano-ku,
TokyoShinjuku-ku,
TokyoKawasaki-shi,
Kanagawa
Ota-ku,Tokyo
Koto-ku,Tokyo
Kita-ku,Tokyo
Bunkyo-ku,
TokyoNakano-ku,
TokyoNakano-ku,
TokyoKoto-ku,Tokyo
Shinjuku-ku,
Tokyo
Sumida-ku,
Tokyo
Setagaya-ku,
Tokyo

Residence Subtotal-

24

Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests-

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
2,250

2,230

926

958

676

706

2,617

2,840

2,337

2,540

1,555

1,620

10,126

11,200

4,896

5,220

10,825

11,400

2,243

2,690

520

510

3,825

4,020

1,673

1,730

1,043

1,130

10,235

10,500

5,614

5,570

3,298

3,360

3,280

3,330

2,628

2,590

2,238

2,230

1,889

1,870

298,114359,039

Usagetype

PropertyNo.

Name ofreal estate, etc.

Location

O-001

Garden City Shinagawa
Gotenyama

O-002

Gotenyama SH Building

Shinagawa-ku,
Tokyo
Shinagawa-ku,
Tokyo

O-003

Hommachi Minami Garden City

(Note 1)

O-004
Officebuilding

O-005

Hommachi Garden City
(Office building portion)
HK Yodoyabashi Garden
Avenue (Note 12)

O-006

Hirokoji Garden Avenue

O-007

Akasaka Garden City

O-008

Shinjuku Hirose Building(Note 2)

Osaka-shi, Osaka
Osaka-shi, Osaka
Osaka-shi, Osaka
Nagoya-shi, Aichi
Minato-ku,
TokyoShinjuku-ku,
TokyoType of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)29,87429,00039,12650,60041,564

55,10035,52341,800

4,144

6,330

6,072

7,380

49,89350,200

5,039

5,110

Office Building Subtotal--

211,238

245,520

Portfolio Total--

509,352

604,559(Note 1)

"Property No." is classified by use of properties held by SHR, whereby each property is given a number and any of the following letters: R
representing residences, O representing office buildings, and H representing hotels, respectively.
(Note 2) "Location" is indicated based on the statement in the registry. If there are multiple statements of locations in the registry, either one of themis indicated.
(Note 3) "Estimated value at the end of period" refers to the value stated in each real estate appraisal report (with the end of April as the appraisaldate) for each fiscal period ended April, and the value stated in each real estate appraisal report (with the end of October as the appraisaldate) or the survey value stated in each real estate survey value report (with the end of October as the survey date) as a result of value
surveys not pursuant to real estate appraisal standards, for each fiscal period ended October, rounded down to the nearest million yen.
(Note 4) For Esty Maison Gotanda, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest to part of the
exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site: 387,036/426,933 (or approximately
90.7%)).
(Note 5) For Esty Maison Musashikoyama, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest to part ofthe exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site: 117,678/127,609 (orapproximately 92.2%)).
(Note 6) For Esty Maison Sendagi, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest to part of the
exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site: 89,730/103,842 (or approximately
86.4%)).
(Note 7) Sha Maison Stage Hakata is a property on a leased land owned by the Urban Renaissance Agency and for which a general fixed-termleasehold right is established with a lease term of 50 years from December 1, 2002.
(Note 8) Part of the land of Prime Maison Central Park (lot number: 23-32) is a leased land, while the building (store) on the leased land is owned by
the lessee.
(Note 9) Esty Maison Toyosu Residence is a property on a leased land owned by the Urban Renaissance Agency and for which a general fixed-termleasehold right is established with a lease term of 65 years from March 17, 2006.
(Note 10) Esty Maison Yokohama-aobadai is comprised by two buildings, Esty Maison Yokohama-aobadai North and Esty Maison
Yokohama-aobadai South. As the two buildings are located on the same site, SHR manages these buildings as a single property reffering tocollectively as Esty Maison Yokohama-aobadai and the total amount of each building is indicated.
(Note 11) Prime Maison EGOTANOMORI is a property on a leased land owned by the Urban Renaissance Agency and for which a general
fixed-term leaseholdright is established with a lease term of 70 years from April 24, 2015.
(Note 12) For HK Yodoyabashi Garden Avenue, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest to allof the exclusively owned portions of the 1st through 6th floors above ground of the building and for the accompanying right of site (ratio ofright of site: 405,901/1,000,000 (or approximately 40.6%)).

25

The following table sets forth the change in status of leasing of real estate, etc. owned by SHR.

Usage
type

Property
Name ofNo.
real estate, etc.

18th fiscal period
19th fiscal period
From: May 1, 2023 To: Oct. 31, 2023
From: Nov. 1, 2023 To: Apr. 30, 2024
Property-related
Property-related
operatingoperatingTotal Occupancy
Ratio toTotal Occupancy
Ratio torevenuerevenuenumber of
rate
Total
number of
rate
Total
fiscalfiscaltenants [at the end
Property-related tenants [at the end
Property-related[during[during[at the end of fiscal
operating [at the end of fiscal
operatingfiscalfiscalof fiscal
period]revenueof fiscal
period]revenueperiod]period]period](%)(%)
period](%)(%)(million(million(Note 1)
(Note 2)
(Note 4)(Note 1)
(Note 2)
(Note 4)yen)yen)(Note 3)

R-001
R-002
R-003
R-004
R-005
R-006
R-007
R-008
R-010
R-011
Residence

R-012
R-013
R-014
R-015
R-016
R-017
R-018
R-019
R-021
R-022
R-023

Esty Maison
Ginza
Esty Maison
Azabunagasaka
Esty Maison
Ebisu II
Esty Maison
Ebisu
Esty Maison
Kanda
Esty Maison
Kitashinjuku
Esty Maison
Asakusakomagata
Esty Maison
Kawasaki
Esty Maison
KameidoEsty Maison
MeguroEsty Maison
SugamoEsty Maison
Kyobashi
Esty Maison
Hakuraku
Esty Maison
Minamihorie
Esty Maison
GotandaEsty Maison
Oisendaizaka
Esty Maison
ShinagawaSeasideEsty Maison
Minamiazabu
Esty Maison
Kawasaki II
Esty Maison
Azabujuban
Esty Maison
Itabashihoncho(Note 3)

1

97.7

178

1.2

1

96.9

184

1.2

1

94.9

50

0.3

1

100.0

47

0.3

1

95.7

59

0.4

1

94.1

57

0.4

1

100.0

23

0.2

1

96.1

24

0.2

1

97.4

47

0.3

1

98.7

47

0.3

1

97.7

48

0.3

1

97.7

47

0.3

1

94.6

66

0.4

1

98.2

68

0.5

1

93.3

75

0.5

1

95.9

76

0.5

1

100.0

54

0.4

1

99.0

54

0.4

1

91.2

30

0.2

1

94.4

30

0.2

1

100.0

51

0.3

1

89.2

50

0.3

1

97.2

91

0.6

1

95.8

88

0.6

1

100.0

31

0.2

1

98.2

31

0.2

1

98.6

34

0.2

1

100.0

34

0.2

1

95.7

94

0.6

1

94.9

96

0.6

1

98.4

82

0.5

1

95.2

79

0.5

1

95.6

66

0.4

1

95.1

65

0.4

1

96.2

33

0.2

1

100.0

35

0.2

1

97.7

65

0.4

1

98.4

63

0.4

1

96.0

64

0.4

1

96.5

66

0.4

1

100.0

30

0.2

1

100.0

30

0.2

26

Usagetype

Property
Name ofNo.
real estate, etc.

18th fiscal period
19th fiscal period
From: May 1, 2023 To: Oct. 31, 2023
From: Nov. 1, 2023 To: Apr. 30, 2024
Property-related
Property-related
operatingoperatingTotal Occupancy
Ratio toTotal Occupancy
Ratio torevenuerevenuenumber of
rate
Total
number of
rate
Total
fiscalfiscaltenants [at the end
Property-related tenants [at the end
Property-related[during[during[at the end of fiscal
operating [at the end of fiscal
operatingfiscalfiscalof fiscal
period]revenueof fiscal
period]revenueperiod]period]period](%)(%)
period](%)(%)(million(million(Note 1)
(Note 2)
(Note 4)(Note 1)
(Note 2)
(Note 4)yen)yen)(Note 3)

R-027
R-028
R-030
R-033
R-034
R-035
R-036
R-037
R-038
R-039
R-040
Residence R-041
R-042
R-043
R-044
R-045
R-046
R-047
R-048
R-049
R-050
R-051
R-052

Esty Maison
Musashikoyama
Esty Maison
Sendagi
Esty Maison
Hakatahigashi
Prime Maison
Musashinonomori
Prime Maison
Higashisakura
Prime Maison
Kayabakoen
Esty Maison
Sangenjaya II
Esty Maison
Itabashi C6
Sha Maison
Stage Hakata
Esty Maison
Kinshicho
Esty Maison
Musashikoganei
Prime Maison
GokisoPrime Maison
Yuhigaoka
Prime Maison
Kitatanabe
Prime Maison
Momochihama
Esty Maison
Akihabara
Esty Maison
SasazukaPrime Maison
Ginza East
Prime Maison
TakamiPrime Maison
Yadaminami
Prime Maison
TerihaEsty Maison
Higashishirakabe
Esty Maison
Sengoku(Note 3)

1

100.0

32

0.2

1

100.0

32

0.2

1

97.3

23

0.2

1

92.1

24

0.2

1

99.3

87

0.6

1

98.3

88

0.6

1

100.0

67

0.4

1

92.8

67

0.4

1

88.0

49

0.3

1

97.3

50

0.3

1

96.3

31

0.2

1

96.1

29

0.2

1

97.1

23

0.2

1

100.0

25

0.2

1

96.5

81

0.5

1

97.5

82

0.5

1

100.0

95

0.6

1

100.0

95

0.6

1

100.0

36

0.2

1

90.3

37

0.2

1

97.1

56

0.4

1

97.1

57

0.4

1

93.2

64

0.4

1

96.4

66

0.4

1

100.0

30

0.2

1

96.4

29

0.2

1

100.0

22

0.1

1

96.6

23

0.2

1

100.0

69

0.4

1

100.0

69

0.5

1

97.5

56

0.4

1

97.4

58

0.4

1

96.6

92

0.6

1

95.8

91

0.6

1

98.1

182

1.2

1

93.6

180

1.2

1

92.8

33

0.2

1

97.2

33

0.2

1

85.0

27

0.2

1

92.8

25

0.2

1

100.0

53

0.3

1

100.0

53

0.3

1

100.0

46

0.3

1

100.0

46

0.3

1

100.0

38

0.3

1

100.0

40

0.3

27

Usagetype

Property
Name ofNo.
real estate, etc.

18th fiscal period
19th fiscal period
From: May 1, 2023 To: Oct. 31, 2023
From: Nov. 1, 2023 To: Apr. 30, 2024
Property-related
Property-related
operatingoperatingTotal Occupancy
Ratio toTotal Occupancy
Ratio torevenuerevenuenumber of
rate
Total
number of
rate
Total
fiscalfiscaltenants [at the end
Property-related tenants [at the end
Property-related[during[during[at the end of fiscal
operating [at the end of fiscal
operatingfiscalfiscalof fiscal
period]revenueof fiscal
period]revenueperiod]period]period](%)(%)
period](%)(%)(million(million(Note 1)
(Note 2)
(Note 4)(Note 1)
(Note 2)
(Note 4)yen)yen)(Note 3)

R-053
R-054
R-055
R-056
R-057
R-058
R-059
R-060
R-061
R-062
R-063
Residence

R-064
R-065
R-066
R-067

Esty Maison
Daizawa
Esty Maison
Togoshi
Esty Maison
Nishitemma
Esty Maison
Shirokanedai
Esty Maison
Higashishinjuku
Esty Maison
Motoazabu
Esty Maison
Toritsudaigaku
Esty Maison
Musashikoyama
II
Esty Maison
NakanoEsty Maison
Shinnakano
Esty Maison
Nakanofujimicho
Esty Maison
Tetsugakudo
Esty Maison
KoenjiEsty Maison
Oshiage
Esty Maison
AkabaneR-068 Esty Maison Oji
R-069
R-070
R-071
R-072
R-073

Prime Maison
WasedaPrime Maison
Hatchobori
Prime Maison
JimbochoPrime Maison
Gotenyama East
Sha Maison
Stage Akihabara

R-074 Esty Maison Aoi
R-075

Esty Maison
Yakuin(Note 3)

1

96.5

62

0.4

1

100.0

64

0.4

1

97.9

51

0.3

1

100.0

51

0.3

1

100.0

51

0.3

1

99.1

52

0.3

1

93.8

78

0.5

1

100.0

80

0.5

1

91.8

48

0.3

1

95.9

49

0.3

1

100.0

44

0.3

1

100.0

44

0.3

1

93.5

24

0.2

1

81.4

23

0.2

1

100.0

30

0.2

1

97.8

31

0.2

1

96.9

53

0.3

1

97.7

54

0.4

1

95.5

28

0.2

1

100.0

30

0.2

1

95.6

29

0.2

1

100.0

29

0.2

1

95.4

35

0.2

1

95.5

35

0.2

1

98.5

34

0.2

1

100.0

35

0.2

1

100.0

75

0.5

1

100.0

74

0.5

1

98.8

98

0.6

1

96.4

100

0.7

1

100.0

49

0.3

1

94.2

50

0.3

1

93.9

45

0.3

1

90.6

45

0.3

1

100.0

37

0.2

1

98.1

39

0.3

1

95.9

52

0.3

1

93.3

53

0.4

1

96.5

86

0.6

1

90.7

86

0.6

1

100.0

15

0.1

1

100.0

16

0.1

1

89.0

67

0.4

1

94.2

69

0.5

1

94.9

76

0.5

1

99.4

77

0.5

28

Usagetype

Property
Name ofNo.
real estate, etc.

18th fiscal period
19th fiscal period
From: May 1, 2023 To: Oct. 31, 2023
From: Nov. 1, 2023 To: Apr. 30, 2024
Property-related
Property-related
operatingoperatingTotal Occupancy
Ratio toTotal Occupancy
Ratio torevenuerevenuenumber of
rate
Total
number of
rate
Total
fiscalfiscaltenants [at the end
Property-related tenants [at the end
Property-related[during[during[at the end of fiscal
operating [at the end of fiscal
operatingfiscalfiscalof fiscal
period]revenueof fiscal
period]revenueperiod]period]period](%)(%)
period](%)(%)(million(million(Note 1)
(Note 2)
(Note 4)(Note 1)
(Note 2)
(Note 4)yen)yen)(Note 3)

R-076
R-077
R-078
R-079
R-080
R-081
R-082
R-083
R-084
R-085
R-086
R-087
Residence
R-088

Esty Maison
Kinshicho II
Esty Maison
Ojima
Prime Maison
Fujimidai
Esty Maison
TsurumaiPrime Maison
Morishita
Prime Maison
ShinagawaPrime Maison
Odorikoen
Prime Maison
Minami 2-joPrime Maison
Kamokamogawa
Prime Maison
Central Park
Sha Maison
Stage Yahiro
Prime Maison
Ebisu
Sha Maison
Stage
Kanazawa
Nishiizumi(Note 3)

1

98.0

234

1.5

1

96.6

235

1.5

1

96.6

265

1.7

1

96.7

262

1.7

1

94.0

70

0.5

1

92.2

68

0.5

1

100.0

157

1.0

1

100.0

157

1.0

1

96.5

55

0.4

1

97.7

59

0.4

1

96.8

59

0.4

1

98.2

59

0.4

1

96.9

120

0.8

1

98.7

119

0.8

1

99.1

75

0.5

1

95.4

75

0.5

1

99.1

49

0.3

1

96.3

49

0.3

1

98.7

89

0.6

1

97.9

89

0.6

1

100.0

56

0.4

1

100.0

56

0.4

1

97.3

113

0.7

1

97.4

113

0.7

－

－

21

0.1

－

－

－

－

1

100.0

27

0.2

1

100.0

27

0.2

1

98.1

50

0.3

1

94.0

51

0.3

1

97.5

140

0.9

1

95.6

139

0.9

1

100.0

220

1.4

1

100.0

221

1.5

1

96.6

63

0.4

1

100.0

65

0.4

1

96.5

81

0.5

1

97.4

81

0.5

1

97.5

33

0.2

1

98.1

34

0.2

1

96.2

116

0.8

1

93.7

125

0.8

1

93.6

105

0.7

1

91.1

104

0.7

(Note5)

R-089
R-091
R-092
R-093
R-094
R-095
R-096
R-098
R-099

Esty Maison
Unomori
Sha Maison
Stage Hino
Prime Maison
Yokohama
Nihon-odori
Kobe Women’sStudent Housing
Prime Maison
ShibuyaPrime Maison
Hatsudai
Esty Maison
Uemachidai
Prime Maison
Shirokane-takanawa
Prime Maison
Ichigayayamabushicho

29

Usagetype

Property
Name ofNo.
real estate, etc.

18th fiscal period
19th fiscal period
From: May 1, 2023 To: Oct. 31, 2023
From: Nov. 1, 2023 To: Apr. 30, 2024
Property-related
Property-related
operatingoperatingTotal Occupancy
Ratio toTotal Occupancy
Ratio torevenuerevenuenumber of
rate
Total
number of
rate
Total
fiscalfiscaltenants [at the end
Property-related tenants [at the end
Property-related[during[during[at the end of fiscal
operating [at the end of fiscal
operatingfiscalfiscalof fiscal
period]revenueof fiscal
period]revenueperiod]period]period](%)(%)
period](%)(%)(million(million(Note 1)
(Note 2)
(Note 4)(Note 1)
(Note 2)
(Note 4)yen)yen)(Note 3)

R-100
R-101
R-102
R-103
R-104
R-105
R-106

Esty Maison
Morishita
Prime Maison
Shirokanedai
Tower
Prime Maison
OtsukaPrime Maison
Asakusabashi
Prime Maison
Daikanyama
Prime Maison
Gotenyama West
Esty Maison
ToyosuResidence

R-108 Esty Maison Ijiri
R-109
R-110
Residence R-111
R-112
R-113
R-114
R-115
R-116
R-117
R-118
R-119
R-120
R-121

Prime Maison
Mitatsunamachi
Prime Maison
Hongo
Prime Maison
Kuramae
Esty Maison
Yokohama-aobadai
Esty Maison
Shizuoka Takajo
Sha Maison
StageHirose-dori
Esty Maison
HIGASHIBETSU
IN
Esty Maison
KayabaEsty Maison
SHIRAKABE
MINAMI
Prime Maison
Shimokitazawa
Prime Maison
MeguroPrime Maison
Ryogoku
Prime Maison
Nakameguro(Note 3)

1

96.6

18

0.1

1

100.0

19

0.1

1

93.9

234

1.5

1

97.0

237

1.6

1

96.0

115

0.7

1

96.8

114

0.8

1

89.9

48

0.3

1

98.8

51

0.3

1

92.4

76

0.5

1

94.7

69

0.5

1

96.5

117

0.8

1

96.7

129

0.9

1

96.2

486

3.2

1

96.5

492

3.2

1

100.0

13

0.1

1

100.0

13

0.1

1

95.3

56

0.4

1

100.0

59

0.4

1

95.5

62

0.4

1

92.3

68

0.4

1

95.6

57

0.4

1

97.6

61

0.4

1

100.0

86

0.6

1

100.0

86

0.6

1

100.0

23

0.2

1

100.0

23

0.2

1

100.0

29

0.2

1

100.0

29

0.2

1

100.0

69

0.5

1

100.0

69

0.5

1

96.2

30

0.2

1

92.5

30

0.2

1

100.0

20

0.1

1

100.0

20

0.1

1

92.1

59

0.4

1

90.9

58

0.4

1

88.4

50

0.3

1

88.2

51

0.3

1

90.5

37

0.2

1

93.3

35

0.2

1

97.4

223

1.5

1

94.7

228

1.5

30

Usagetype

Property
Name ofNo.
real estate, etc.

18th fiscal period
19th fiscal period
From: May 1, 2023 To: Oct. 31, 2023
From: Nov. 1, 2023 To: Apr. 30, 2024
Property-related
Property-related
operatingoperatingTotal Occupancy
Ratio toTotal Occupancy
Ratio torevenuerevenuenumber of
rate
Total
number of
rate
Total
fiscalfiscaltenants [at the end
Property-related tenants [at the end
Property-related[during[during[at the end of fiscal
operating [at the end of fiscal
operatingfiscalfiscalof fiscal
period]revenueof fiscal
period]revenueperiod]period]period](%)(%)
period](%)(%)(million(million(Note 1)
(Note 2)
(Note 4)(Note 1)
(Note 2)
(Note 4)yen)yen)(Note 3)

R-122
R-123
R-124
R-125
R-126
R-127
R-128
Residence

R-129
R-130
R-131
R-132
R-133
R-134
R-135

Prime Maison
ItabashiPrime Maison
EGOTANOMOR
I
Prime Maison
Waseda dori
Esty Maison
Noborito
Esty Maison
Omori
Esty Maison
Monzennakacho
Esty Maison
Akabane Ⅱ
Prime Maison
YushimaPrime Maison
Nakanosakaue
Prime Maison
HonanchoPrime Maison
MonzennakachoPrime Maison
Nishiwaseda
Prime Maison
Asakusa EAST
Prime Maison
Sakurashinmachi
Subtotal(Note 3)

1

98.3

118

0.8

1

97.6

123

0.8

1

98.1

623

4.1

1

98.4

628

4.1

1

97.3

55

0.4

1

93.0

56

0.4

1

93.8

2

0.0

1

96.8

14

0.1

－

－

－

－

1

98.2

12

0.1

－

－

－

－

1

81.8

4

0.0

－

－

－

－

1

63.2

1

0.0

－

－

－

－

1

96.2

35

0.2

－

－

－

－

1

95.5

16

0.1

－

－

－

－

1

90.0

10

0.1

－

－

－

－

1

97.9

12

0.1

－

－

－

－

1

93.8

8

0.1

－

－

－

－

1

93.4

6

0.0

－

－

－

－

1

90.9

5

0.0

12

97.3

8,690

56.5

12

97.0

8,875

58.3

31

Usagetype

Property
Name ofNo.
real estate, etc.

18th fiscal period
19th fiscal period
From: May 1, 2023 To: Oct. 31, 2023
From: Nov. 1, 2023 To: Apr. 30, 2024
Property-related
Property-related
operatingoperatingTotal Occupancy
Ratio toTotal Occupancy
Ratio torevenuerevenuenumber of
rate
Total
number of
rate
Total
fiscalfiscaltenants [at the end
Property-related tenants [at the end
Property-related[during[during[at the end of fiscal
operating [at the end of fiscal
operatingfiscalfiscalof fiscal
period]revenueof fiscal
period]revenueperiod]period]period](%)(%)
period](%)(%)(million(million(Note 1)
(Note 2)
(Note 4)(Note 1)
(Note 2)
(Note 4)yen)yen)(Note 3)

Officebuilding

Hotel(Note 1)

(Note 2)

(Note 3)(Note 4)(Note 5)

Garden City
O-001 Shinagawa
Gotenyama
Gotenyama SH
O-002
Building
HommachiO-003 Minami Garden
City
Hommachi
Garden City
O-004
(Office building
portion)HK
O-005 Yodoyabashi
Garden Avenue
Hirokoji Garden
O-006
AvenueAkasaka Garden
O-007
City
Shinjuku Hirose
O-008
Building(Note 3)

1

84.3

1,547

10.1

1

86.9

1,355

8.9

1

100.0

1,088

7.1

1

100.0

979

6.4

1

100.0

1,323

8.6

1

98.7

1,296

8.5

1

100.0

903

5.9

1

100.0

903

5.9

1

100.0

173

1.1

1

100.0

164

1.1

1

100.0

211

1.4

1

100.0

207

1.4

1

93.5

1,042

6.8

1

95.3

946

6.2

－

－

－

－

3

100.0

85

0.6

Subtotal

4

94.4

6,291

40.9

7

96.6

5,941

39.0

HommachiH-001 Garden City
(Hotel portion)

1

100.0

402

2.6

－

－

400

2.6

Subtotal

1

100.0

402

2.6

－

－

400

2.6

Total

16

96.7

15,384

100.0

19

96.9

15,216100.0"Total number of tenants" refers to the sum total of the number of tenants under, and indicated in, the respective lease agreements for each
property that are valid as of the end of fiscal period under review (or, if a master lease agreement that is valid as of the end of each fiscal
period has been concluded for the property, the number of lessees under the master lease agreement). In the "Subtotal" and "Total" columns,
however, a tenant that leases spaces in multiple properties is counted as one. Furthermore, of the office buildings, the total number of end
tenants for "Garden City Shinagawa Gotenyama", "Hommachi Minami Garden City", "HK Yodoyabashi Garden Avenue", "Hirokoji
Garden Avenue" and "Akasaka Garden City" where pass-through type master lease agreements have been concluded is 19, 16, 8, 7 and 18,
respectively as of the end of the 18th fiscal period (from May, 1, 2023 to Oct. 31, 2023) and 21, 15, 8, 7 and 20, respectively as of the endof the 19th fiscal period (from Nov, 1, 2023 to Apr. 30, 2024).
"Occupancy rate" refers to the ratio of leased area to leasable area of each property as of the end of each fiscal period, rounded to the nearest
first decimal place. The figures indicated in the "Subtotal" columns are the ratio of the subtotal of leased area of each property classified byusage type to the subtotal of leasable area of each property classified by usage type, and the figure indicated in the "Total" column is theratio of the total of leased area of each property to the sum total of leasable area of each property, as the occupancy rate of the entire
portfolio. Both figures have been rounded to the nearest first decimal place.
"Property-related operating revenue [during fiscal period]" indicates the property-related operating revenue of each property for each fiscal
period, rounded down to the nearest million yen.
Figures under the heading "Ratio to Total Property-related operating revenue" indicate the ratio of property-related operating revenue ofeach property for each fiscal period or the subtotal of property-related operating revenue of each property classified by usage type for eachfiscal period to total property-related operating revenue of each property for each fiscal period, rounded to the nearest first decimal place.
SHR disposed "Sha Maison Stage Kanazawa Nishiizumi" on August 3, 2023. Accordingly, "Property-related operating revenue [during
fiscal period]" and "Ratio to Total Property-related operating revenue" for the property in the above table indicate the figures for theduration SHR owned it in the 18th fiscal period (from May 1, 2023 to Oct. 31, 2023).

32

(Note 6)

SHR disposed of "Hommachi Garden City (Hotel portion)" as of April 30, 2024. Therefore, the above figures for "Real Estate Rental
Revenue (during fiscal period)" and "Ratio to Total Real Estate Rental Revenue" of the property in the above table indicate the figures forthe duration SHR owned it in the 19th fiscal period (from Nov. 1, 2023 to Apr. 30, 2024).

33

4. Details of Renewable Energy Power Generation Facility, etc.
Not applicable.

5. Details of Right to Operate Public Facility, etc.
Not applicable.

6. Details of Investment Securities
The following are the details for investment securities as of the end of the fiscal period under review.
Valuation

Book value
Asset name

Asset type

Quantity(Note1)

Unit
price

Price
(thousand yen)

Unit
price

Price
(thousand yen)

Valuation
gain or loss
(thousand yen)

Remarks

Silent partnership equity
interests with Godo Silent partnership
Kaisha Gemini1 as the equity interests
operator－－

442,898－442,898－(Note 2)

Silent partnership equity
interests with Godo Silent partnership
Kaisha Gemini2 as the equity interests
operator－－

206,103－206,103－(Note 3)－－－649,002－649,002

－

－

Total
(Note 1)
(Note 2)

(Note 3)

"Valuation" is the book value.
The underlying asset refers to 34.55% quasi co-ownership interest of the trust beneficiary interest in real estate regarding thecompartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor underground through 4th floor above groundand 11th floor through 19th floor above ground of the "Akasaka Garden City" building, as well as the accompanying right of site (ratio ofright of site: 662,768/1,000,000 (or approximately 66.3%)), which has not yet been acquired by SHR.
The underlying asset refers to the trust beneficiary interest in real estate of the "Ningyocho PREX".

7. Table of Status of Contract Amount, etc. and Fair Value of Specified Transactions
The following table sets forth the status of contract amount, etc. and fair value of specified transactions at SHR
as of the end of the fiscal period under review.
Contract amount, etc.
(thousand yen) (Note 1)
Fair value
Amount(thousand yen)
due after 1 year

Category

Type

Transaction other thanmarket transaction

Interest rate swap transaction(Under which floating interest rates are receivableand fixed interest rates are payable)
Total(Note 1)
(Note 2)

96,951,000

76,632,000－(Note 2)96,951,000

76,632,000－

The contract amount, etc. of interest rate swap transactions is based on notional principal amounts.
The fair value is omitted because the transaction meets the criteria for special accounting under the Accounting Standards for Financial
Instruments.

34

8. Status of Other Assets
Trust beneficiary interests with real estate as the main assets in trust are stated in "3. Details of Assets (Real
Estate, etc.) in the Portfolio" and "6. Details of Investment Securities" above. As of the end of the fiscal period
under review, there are no specified assets other than real estate, etc., asset-backed securities, etc. andinfrastructure assets, etc. in the portfolio.

9. Status of Holding of Assets by Country and Region
As of the end of the fiscal period under review, there are no portfolio real estate, etc. in any other country or
region besides Japan.

35

Capital Expenditures for Property
1. Scheduled Capital Expenditures
The principal capital expenditures associated with renovation work, etc. currently planned for properties owned
by SHR are as follows. Please note that some of the planned construction costs may be classified as expenses
for accounting purposes.
Planned Construction Costs(million yen) (Note)
Name of real estate, etc.
(location)

Esty Maison Toyosu Residence(Koto-ku, Tokyo)
Kobe Women’s Student Housing(Kobe-shi, Hyogo)
Esty Maison HIGASHIBETSUIN(Nagoya-shi, Aichi)(Note)

PurposeLarge-scale repairs
Large-scale repairs
Large-scale repairs

Planned period

From: November 2023
To: October 2024
From: June 2024
To: February 2025
From: October 2024
To: April 2025

Total

Payment for current Amount alreadyfiscal period
paid

672

232

232

276

－

－

121

－

－

"Planned Construction Costs" refers to the amount obtained by multiplying the total cost required for construction by the proportion ofownership or quasi co-ownership interest in the compartmentalized ownership held by SHR (if SHR owns a quasi co-ownership interest in thereal estate trust beneficiary interest with compartmentalized ownership as trust property, the total cost is multiplied by the ownership ratio of
the compartmentalized ownership, and then the quasi co-ownership amount is multiplied by percentage), if SHR owns the sectional
ownership or the quasi co-ownership interest in the real estate trust beneficiary right of the property subject to the construction.

2. Capital Expenditures During the Period
An overview of capital expenditures for properties owned by SHR during the fiscal period under review is asfollows. In addition, the total capital expenditure for the current fiscal period was 1,026 million yen, and a total of
1,437 million yen of construction work was carried out, including repair expenses of 411 million yen classified as
expenses for the current fiscal period.
Name of real estate, etc.
(location)
Prime Maison Central Park
(Fukuoka-shi, Fukuoka)
Esty Maison Shizuoka Takajo(Shizuoka-shi, Shizuoka)

PurposeLarge-scale repairs
Large-scale repairs

Esty Maison Toritsudaigaku

Large-scale repairs(Meguro-ku, Tokyo)

PeriodPayment amount(million yen)

From: October 2023
To: April 2024
From: November 2023
To: March 2024

268
71

From: November 2023

44

To: March 2024

Other Capital Expenditures

641

Total

1,026

3. Cash Reserves for Long-Term Repair Plans
SHR had no cash reserved for long-term repair plans as of the end of the fiscal period under review(Note).

(Note)"Reserve fund for repair", which has been reserved by management associations at the properties owned by SHR in order to secure
expenses for repair works expected in the future, is not included in the cash reserves.

36

Condition of Expenses and Debts
1. Details of Expenses Pertaining to Management, etc.
Item

(Unit: thousand yen)
19th fiscal period
From: Nov. 1, 2023
To: Apr. 30, 2024

18th fiscal period
From: May 1, 2023
To: Oct. 31, 2023

Asset management fee

1,073,228

716,972

Asset custody fee

10,55010,553Administrative service fees

49,84649,671

Directors’compensations

3,600

4,500

408,726

383,272

1,545,952

1,164,969

Other expenses
Total(Note)In addition to the amounts shown above, the "Asset management fee" contains the asset management fees of 24,300 thousand yen for the 18th fiscal
period, which is included in the other selling expenses for the disposition of properties, and the asset management fees of 1,470 thousand yen for the
18th fiscal period, which is included in the book value of the real estate, etc. for the acquisition of properties. Moreover, the "Asset management fee"
contains the asset management fees of 85,050 thousand yen for the 19th fiscal period, which is included in the other selling expenses for the dispositionof properties, and the asset management fees of 33,450 thousand yen for the 19th fiscal period, which is included in the book value of the real estate,etc. for the acquisition of properties.

37

Condition of Investment Transactions
1. Status, etc. of Sale and Purchase of Real Estate, etc., Asset-Backed Securities, etc., Infrastructure
Assets, etc. and Infrastructure-Related Assets
Acquisition

Disposition

Acquisition date

Acquisition
price(million yen)
(Note)

Shinjuku Hirose Building

December 21,
2023

5,000

－

－

－

－

Esty Maison Omori

March 1, 2024

3,600

－

－

－

－

Esty Maison Monzennakacho

March 1, 2024

1,570

－

－

－

－

Esty Maison Akabane Ⅱ

March 1, 2024

980

－

－

－

－

Garden City Shinagawa
Gotenyama (51.0% quasi
co-ownership)－－

March 19, 2024

31,11035,327(4,224)

Prime Maison Yushima

April 1, 2024

10,000－－－－Prime Maison Nakanosakaue

April 1, 2024

5,490

－

－

－

－

Prime Maison Honancho

April 1, 2024

3,220

－

－

－

－

Prime Maison Monzennakacho

April 1, 2024

3,200

－

－

－

－

Prime Maison Nishiwaseda

April 1, 2024

2,570

－

－

－

－

Prime Maison Asakusa EAST

April 1, 2024

2,180

－

－

－

－

Prime Maison Sakurashinmachi

April 1, 2024

1,840

－

－

－

－

Gotenyama SH Building (10.0%
quasi co-ownership)－－

April 30, 2024

7,000

4,890

2,087

Hommachi Garden City (Hotelportion)－－April 30, 2024

21,35016,516

4,766－

39,650－59,46056,734

2,630

Name of real estate, etc.

Total
(Note)

Disposition date

Disposition
Gain (Loss)
price
Book value
on sale(million yen) (million yen)(million yen)
(Note)"Acquisition price" and "Disposition price" indicate the transaction prices shown in the sales and purchase agreements for respective owned
properties (excluding consumption tax, local consumption tax and miscellaneous expenses including transaction fees), rounded down to thenearest million yen. The same applies hereinafter.

2. Status, etc. in Respect of Sale and Purchase of Other Assets
Not applicable.
Main assets other than the abovementioned real estate, etc., asset-backed securities, etc., infrastructure assets,etc. and infrastructure-related assets are essentially bank deposits or bank deposits within assets in trust.

38

3. Investigation into Value, etc. of Specified Assets(1) Real Estate, etc. (Appraisal)
Acquisition
or
Disposition

Acquisition

Acquisition

Acquisition

Acquisition

Acquisition

Acquisition

Acquisition

Acquisition

Acquisition

Acquisition

Acquisition

Disposition

Disposition

Name of realestate, etc.

TransactiondateAcquisition/
Appraisal
disposition
value
Type of asset
price(million yen)
(Note 1)(million yen)

Real estate
trust
beneficiaryinterests
Real estate
Esty Maison
trust
March 1, 2024
Omori
beneficiaryinterests
Real estate
Esty Maison
trust
March 1, 2024
Monzennakachobeneficiaryinterests
Real estate
Esty Maison
trust
March 1, 2024
Akabane Ⅱ
beneficiaryinterests
Real estate
Prime Maison
trust
April 1, 2024
Yushimabeneficiaryinterests
Real estate
Prime Maison
trust
April 1, 2024
Nakanosakaue
beneficiaryinterests
Real estate
Prime Maison
trust
April 1, 2024
Honanchobeneficiaryinterests
Real estate
Prime Maison
trust
April 1, 2024
Monzennakachobeneficiaryinterests
Real estate
Prime Maison
trust
April 1, 2024
Nishiwaseda
beneficiaryinterests
Real estate
Prime Maison
trust
April 1, 2024
Asakusa EAST
beneficiaryinterests
Real estate
Prime Maison
trust
April 1, 2024
Sakurashinmachi
beneficiaryinterests
Garden City
Real estate
ShinagawaMarch 19,
trust
Gotenyama2024
beneficiary(51.0% quasiinterests
co-ownership)
Gotenyama SH
Real estate
Building (10.0%
trust
April 30, 2024
quasi
beneficiaryco-ownership)
interests
Shinjuku Hirose
Building

December 21,
2023

39

5,000

5,120

Appraiser

Date ofappraisal

Tanizawa Sogo
Appraisal Co.,Ltd

December
1, 2023

Chuo Real
EstateAppraisal Co.,Ltd.
Chuo Real
EstateAppraisal Co.,Ltd.
Chuo Real
EstateAppraisal Co.,Ltd.

December
1, 2023

3,600

4,000

1,570

1,730

980

1,130

10,00010,500Japan Real
EstateInstitute

February29, 2024

5,490

5,560

Japan Real
EstateInstitute

February29, 2024

3,220

3,350

Japan Real
EstateInstitute

February29, 2024

3,200

3,320

Japan Real
EstateInstitute

February29, 2024

2,570

2,590

Japan Real
EstateInstitute

February29, 2024

2,180

2,230

Japan Real
EstateInstitute

February29, 2024

1,840

1,860

Japan Real
EstateInstitute

February29, 2024

31,1107,000

December
1, 2023

December
1, 2023DAIWA REALESTATE(Note 2)34,017APPRAISAL
CO., LTD.

October
31, 2023

Tanizawa Sogo
Appraisal Co.,Ltd

April 30,2023

(Note 3)6,350

Acquisition
or
Disposition

Disposition

Name of realestate, etc.

Hommachi
Garden City
(Hotel portion)

TransactiondateAcquisition/
Appraisal
disposition
value
Type of asset
price(million yen)
(Note 1)(million yen)

Real estate
trust
April 30, 2024
beneficiaryinterests

21,35016,700Appraiser

Japan Real
EstateInstitute

Date ofappraisal

March 31,2024

(Note 1) The appraisal value stated above is derived by applying the "Real Estate Appraisal Standards; Particulars; Chapter 3: Appraisal on Value ofReal Estate Subject to Securitization".
(Note 2) The amount is calculated by multiplying the real estate appraisal value of 66,700 million yen for the entire property by the quasi co-ownershipinterest of 51.0% in the trust beneficiary right disposed.
(Note 3) The amount is calculated by multiplying the real estate appraisal value of 63,500 million yen for the entire property by the quasi co-ownershipinterest of 10.0% in the trust beneficiary right disposed.

(2) Others
Not applicable.

40

4. Status of Transactions with Interested Persons, etc.(Note 1)(1) Status of Transactions
Amount of purchase and sale, etc.
Category

Total amountAmount of purchase, etc.

Amount of sale, etc.

39,650 million yen

59,460 million yen

Breakdown of status of transactions with interested persons, etc.
Sekisui House, Ltd.

28,500 million yen [71.9 %]－ million yen [－%]

Total

28,500 million yen [71.9 %]－ million yen [－%]

(2) Amount of Commission Fee, etc.

Category

Management fee(Note 2)

(Note 1)

(Note 2)
(Note 3)

Total amount ofcommission fee,
etc. (A)(thousand yen)

1,150,335

Breakdown of transactions with interested persons, etc.
Amount paid(B)(thousand yen)Payee

As a percentage of
total amount (B/A)(%)

Sekisui House Real Estate Tokyo, Ltd.

529,039

46.0

Sekisui House Real Estate Chubu, Ltd.

64,678

5.6

Sekisui House GM Partners, Ltd.

47,821

4.2

Sekisui House, Ltd.

25,621

2.2

Sekisui House Real Estate Kyushu, Ltd.

17,630

1.5

Sekisui House Real Estate Kansai, Ltd.

3,677

0.3

Sekisui House Real Estate Tohoku, Ltd.

1,050

0.1

"Interested persons, etc." refers to interested persons, etc. of the asset management company with which SHR has executed an asset
management entrustment agreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts andInvestment Corporations (Order for Enforcement No. 480 of 2000, as amended) and Article 26, Item 27 of the Rules on Investment
Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts Association, Japan.
"Management fee" has been rounded down to the nearest thousand yen.
Other than the commission fee, etc. indicated above, the amounts paid to interested persons, etc. for repair works, etc. are as
follows. The figures have been rounded down to the nearest thousand yen.

Sekisui House Real Estate Tokyo, Ltd
Konoike Building Technology Co.,Ltd.
Sekisui House Real Estate Kyushu, Ltd.
Sekisui House Real Estate Chubu, Ltd.
Sekiwa Total Support Co., ltd.
Sekisui House GM Partners, Ltd.
Sekisui House Real Estate Tohoku, Ltd.
Sekisui House Real Estate Kansai, Ltd.

362,406
273,214
111,515
94,43049,00634,1294,792
1,898

thousand yen
thousand yen
thousand yen
thousand yen
thousand yen
thousand yen
thousand yen
thousand yen

5. Status, etc. of Transactions with the Asset Management Company Pertaining to Business
Operations of Concurrent Business Engaged in by the Asset Management Company
There are no applicable transactions as of the end of the fiscal period under review, as SHAM does notconcurrently engage in any type I financial instruments or type II financial instruments business (as defined in
the Financial Instruments and Exchange Act (Act No. 25 of 1948, as amended)), building lots and buildings
transaction business, or specified joint real estate ventures.

41

Other Information
1. Notice(1) Meeting of the Board of Directors of the Investment Corporation
The following is a summary of the major agreements executed or amendments approved by the SHR's Board of
Directors during the fiscal year under review.
Approval Date

January 23, 2024

February 19, 2024

item

Overview

Conclusion of amendment agreement
to asset management agreement

The Board of Directors approved the execution of theamendment
agreementtoasset
managementagreement with the condition precedent that the proposal
for partial amendment to the Articles of Incorporation beapproved and passed at SHR's 6th General Meeting ofUnitholders held on January 24, 2024.

Entrustment of general administrative
work related to the Issuance ofinvestment corporation bonds

The Board of Directors approved the candidate company
for the consignment of general administrative work related
to the issuance of investment corporation bonds, andentrusted the Executive Director with the decision on othernecessary matters.

(2) Fraction of Amounts and Ratios
In this document, unless otherwise stated, figures are rounded down to the nearest whole number, and ratios arerounded off.

42

1. Financial Statements(1) Balance Sheet(Thousand yen)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Income taxes refund receivable
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Long-term prepaid expenses
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets
Total assets

43

18th Fiscal Period(As of October 31, 2023)

19th Fiscal Period(As of April 30, 2024)

15,062,344
19,762,618
238,031－
310,685
10,031(2,764)35,380,946

33,680,216
17,845,283
221,518876
296,575
307,507(1,111)
52,350,867

184,234,435(27,880,590)
156,353,844

178,643,432(27,400,982)
151,242,450

1,568,777(381,283)
1,187,493
2,410,950(540,306)
1,870,644
1,150,034(441,710)
708,324
364,940,202－
525,060,508

1,557,352(395,211)
1,162,140
2,459,646(597,717)
1,861,929
1,255,814(537,262)
718,552
348,497,395
262,100
503,744,567

5,924,527
21,045
5,945,572

5,869,408
19,162
5,888,571

668,655
1,530,346
626,899
154
167,648
2,993,704
533,999,785

649,0021,530,226
622,9517
168,3172,970,506
512,603,645

80,99816,801
97,799569,478,531

67,7998,400
76,200565,030,712

(Thousand yen)
18th Fiscal Period(As of October 31, 2023)

19th Fiscal Period(As of April 30, 2024)

1,015,564
3,000,000
10,000,000
31,545,000
2,522,935
305,4101,749
372,140
692,918
2,775
4,821
49,463,317

911,330
5,160,000
12,000,000
32,505,000
2,145,488
323,261－
1,364,271
721,807－
12,71755,143,875

21,500,000
191,197,000

16,500,000
191,077,000

14,091,351
226,788,351
276,251,668

12,783,739
220,360,739
275,504,615

161,283,304

161,287,627

128,598,415

128,598,415

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Derivatives liabilities
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Total non-current liabilities
Total liabilities
Net assets
Unitholders’equity
Unitholders’capital
SurplusCapital surplus
Deduction from capital surplus
Allowance for temporary difference adjustments
Other deduction from capital surplus
Total deduction from capital surplus
Capital surplus, net
Unappropriated retained earnings
Total surplus
Total unitholders’equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

*5
*3

*1

The accompanying notes are an integral part of these financial statements.

44(70,103)(3,999,964)(4,070,068)*5*3

124,528,346
7,417,987
131,946,334
293,229,639(1,314,502)(4,004,287)(5,318,790)
123,279,624
4,958,844
128,238,469
289,526,097(2,775)(2,775)
293,226,863
569,478,531－－
289,526,097
565,030,712*1

(2) Statement of Income and Retained Earnings(Thousand yen)
18th Fiscal Period(From May 1, 2023
to October 31, 2023)
Operating revenue
Rent revenue – real estate
Other lease business revenue
Gain on sale of real estate properties
Gain on investments in silent partnership
Total operating revenue
Operating expenses
Expenses related to rent business
Loss on sale of real estate properties
Impairment losses
Asset management fees
Asset custody fees
Administrative service fees
Directors’compensation
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
Compensation for damage
Reversal of allowance for doubtful accounts
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses
Amortization of investment unit issuance costs
Amortization of investment corporation bond issuance costs
Other
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings

The accompanying notes are an integral part of these financial statements.

45

19th Fiscal Period(From November 1 2023
to April 30, 2024)

*1
*1
*2

14,894,546
489,891
1,097,186
4,021
16,485,645

*1
*1
*2

14,761,986
454,7876,854,718
6,768
22,078,262*1

6,596,150－－
1,073,228
10,55049,846
3,600
408,726*1*2*3

6,783,722
4,224,299
4,008,462
716,972
10,55349,671
4,500
383,272

8,142,102
8,343,542

16,181,454
5,896,807

133
712
－
－
491
1,336

153
731
3,736
1,653
－
6,274

704,948
74,741
129,981
8,400
13,1982,236
933,506
7,411,373
7,411,373
2,874
(154)
2,720
7,408,653
9,334
7,417,987

722,174
68,574
132,864
8,400
13,1982,696
947,909
4,955,173
4,955,173
759
146
906
4,954,266
4,578
4,958,844

(3) Statement of Changes in Net Assets
18th Fiscal Period (From May 1, 2023 to October 31, 2023)(Thousand yen)

Unitholders’capitalBalance at beginning of period
Changes of items during period
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments
Distribution from surplus
Distributions in excess ofearnings from allowance fortemporary difference
adjustments
Net income
Net changes of items otherthan unitholders’equity
Total changes of items during
periodBalance at end of period

161,283,304

Unitholders’equity
SurplusCapital surplus
Deduction from capital surplus
Allowance for
Other
Total deduction
Capitaltemporary deduction fromfromsurplusdifference
unitholders'unitholders'adjustments capital surplus capital surplus
128,598,415－(3,999,964)(3,999,964)(70,103)

Capitalsurplus, net

124,598,450(70,103)(70,103)－－(70,103)－(70,103)(70,103)*1 161,283,304

128,598,415(70,103)(3,999,964)(4,070,068)

124,528,346(Thousand yen)

Unitholders’equity
Surplus

Balance at beginning of period
Changes of items during period
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments
Distribution from surplus
Distributions in excess ofearnings from allowance fortemporary difference
adjustments
Net income
Net changes of items otherthan unitholders’equity
Total changes of items during
periodBalance at end of period

Voluntary reserve
UnappropriatedReserve forretained
Reserve fortemporary Total voluntary
difference
reserveearnings
reduction entry
adjustments
911,281
194,129
1,105,411
6,637,238(911,281)(194,129)

Total
surplusTotal
unitholders’equity132,341,100

293,624,405(911,281)

911,281－－(194,129)

194,129－－(7,733,315)(7,733,315)(7,733,315)(70,103)(70,103)7,408,653

7,408,653

7,408,653(911,281)(194,129)(1,105,411)

780,749(394,766)(394,766)－－－

7,417,987

131,946,334

293,229,639

46

Balance at beginning of period
Changes of items during period
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments
Distribution from surplus
Distributions in excess ofearnings from allowance fortemporary difference
adjustments
Net income
Net changes of items otherthan unitholders’equity
Total changes of items during
periodBalance at end of period(Thousand yen)
Valuation and translation
adjustments
Total
Deferred gains Total valuation
net assets
or losses
and translation
on hedges
adjustments(7,099)(7,099) 293,617,306－－(7,733,315)(70,103)7,408,653
4,323

4,323

4,323

4,323

4,323

(390,442)(2,775)(2,775)

293,226,863

47

19th Fiscal Period (From November 1, 2023 to April 30, 2024)(Thousand yen)
Unitholders’equity
SurplusCapital surplus
Unitholders’capitalBalance at beginning of
periodDeduction from capital surplus
Allowance for
Other deduction Total deduction
temporaryfrom unitholders' from unitholders'difference
capital surplus
capital surplus
adjustments

Capitalsurplus161,283,304

128,598,415

Capital surplus,
net(70,103)(3,999,964)(4,070,068)

124,528,346

4,323(4,323)－－(1,248,722)(1,248,722)

Changes of items during
periodDistribution fromsurplus
Reversal of allowance fortemporary difference
adjustments
Distributions in excess ofearnings from allowancefor temporary difference
adjustments

4,323(1,248,722)

Net income
Net changes of items
other than unitholders’equityTotal changes of items
during period

Balance at end of period *1

4,323

－

(1,244,399)(4,323)(1,248,722)(1,248,722)

161,287,627

128,598,415(1,314,502)(4,004,287)(5,318,790)

123,279,624

Unitholders’equity

Balance at beginning of
periodChanges of items during
periodDistribution from surplus
Reversal of allowance fortemporary difference
adjustments
Distributions in excess ofearnings from allowancefor temporary difference
adjustments
Net income
Net changes of items
other than unitholders’equityTotal changes of items
during period
Balance at end of period

Surplus
Unappropriatedretained earnings

Valuation and translation adjustments
Total
net assets

Total
surplusTotal
unitholders’equityDeferred gains
or losseson hedges

Total valuation andtranslation
adjustments

7,417,987

131,946,334

293,229,639(2,775)(2,775)(7,409,086)(7,409,086)(7,409,086)(7,409,086)(4,323)(4,323)－－(1,248,722)(1,248,722)(1,248,722)

4,954,266

4,954,266

4,954,266

4,954,266

293,226,863

2,775

2,775

2,775

(2,459,142)(3,707,864)(3,703,541)

2,775

2,775

(3,700,765)

4,958,844

128,238,469

289,526,097－－

289,526,097

The accompanying notes are an integral part of these financial statements.

48

(4) Statement of Cash Distributions
Item
Ⅰ. Unappropriated retained earnings
Ⅱ. Amount added to distributions in excess of earnings
Allowance for temporary difference adjustments
Ⅲ. Capitalization
Reversal of allowance for temporary difference
adjustment
Ⅳ. Cash distributions[Cash distributions per unit]
Of which, distributions of earnings[Of which, distributions of earnings per unit]
Of which, allowance for temporary difference
adjustments[Of which, distributions in excess of earnings per unit
[associated with the allowance for temporary
difference adjustments]]
Ⅴ. Retained earnings carried forward
Method for calculating cash distributions

18th Fiscal Period(From May 1, 2023
to October 31, 2023)
7,417,987,467 yen*1*1

1,248,722,370 yen
4,323,083 yen

19th Fiscal Period(From November 1, 2023
to April 30, 2024)
4,958,844,944 yen*1

4,223,748,648 yen
2,775,930 yen

4,323,083 yen

2,775,930 yen

8,657,808,432 yen[1,976 yen]
7,409,086,062 yen[1,691 yen]

9,179,204,790 yen[2,095 yen]
4,955,456,142 yen[1,131 yen]

1,248,722,370 yen*14,223,748,648 yen[285 yen][964 yen]

4,578,322 yen
The basic policy is to distribute inexcess of an amount equivalent to
90% of the amount of earnings
available for distribution of SHR
provided in Article 67-15,
Paragraph 1 of the Act on Special
Measures Concerning Taxation as
set forth in Article 46, Paragraph
1, Item 2 of the Articles ofIncorporation of SHR.

612,872 yen
The basic policy is to distribute inexcess of an amount equivalent
to 90% of the amount of
earnings available for distributionof SHR provided in Article 67-15,
Paragraph 1 of the Act on Special
Measures Concerning Taxation as
set forth in Article 46, Paragraph
1, Item 2 of the Articles ofIncorporation of SHR.

Based on such policy, SHR
decided to distribute
7,409,086,062 yen, which isunappropriated retained earnings
as distribution of earnings.

Based on such policy, SHR
decided to distribute
4,955,456,142 yen, which isunappropriated retained earnings
as distribution of earnings.

In addition, pursuant to the policy
for "distribution of money inexcess of profits" as set forth in
Article 46, Paragraph 2 of the
Articles of Incorporation of SHR,SHR decided to make a
distribution for the 1,248,722,370
yen in allowance for temporary
difference adjustments for the
purpose of reflecting the effect on
distributions of tax and accounting
differences.

In addition, pursuant to the policy
for "distribution of money inexcess of profits" as set forth in
Article 46, Paragraph 2 of the
Articles of Incorporation of SHR,SHR decided to make a
distribution for the 4,223,748,648
yen in allowance for temporary
difference adjustments for the
purpose of reflecting the effect(including impairment losses) on
distributions of tax and accounting
differences.

49

(5) Statement of Cash Flows(Thousand yen)
18th Fiscal Period(From May 1, 2023
to October 31, 2023)

19th Fiscal Period(From November 1 2023
to April 30, 2024)

7,411,373
2,639,988
13,198
8,400
－
(133)
779,689(47,511)125,262(1,957)
17,069(94,624)
1,439,327
372,140

4,955,173
2,710,085
13,1988,400
4,008,462(153)
790,749
16,512－
14,110
3,948(20,558)(378,336)
992,130

131
5,889,063
33,526
18,584,946
133(725,047)
119
17,860,150

28,88856,734,725(288,913)
69,588,423
153(772,775)(3,385)68,812,415(1,336,351)－(15,374)
14,868402,890(692,447)(7,843)(1,634,258)(42,158,907)(579)－
18,523
795,429(2,103,041)(6,382)(43,454,958)

4,000,000(1,000,000)
20,210,000(24,210,000)－(7,802,396)(8,802,396)
7,423,495
27,401,467
34,824,962

2,160,000－
16,680,000(15,840,000)(3,000,000)(8,656,919)(8,656,919)
16,700,537
34,824,962
51,525,500

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Impairment losses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease due to sale of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
Purchase of intangible assets
Proceeds from refunds of investment securities
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Decrease (increase) in other investments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of investment corporation bonds
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

The accompanying notes are an integral part of these financial statements.

50

*1

*1

(6) Notes to Financial Statements

1. Organization
Sekisui House Reit, Inc. (“SHR”) is a Japanese real estate investment corporation established in September
2014 under the Act on Investment Trusts and Investment Corporations of Japan (the “Investment TrustAct”).On December 3, 2014, SHR commenced its investment operations when it was listed on the Real Estate
Investment Trust Securities Market of the Tokyo Stock Exchange, and it acquired three properties (totalacquisition cost of 114.3 billion yen) on the same day.
SHR implemented a 2-for-1 split of its investment units with May 1, 2018 as the effective date.
SHR conducted an absorption-type merger with Sekisui House Residential Investment Corporation (“SHI”)
as the dissolved corporation, setting May 1, 2018 as the effective date.
SHR is externally managed by a licensed asset management company, Sekisui House Asset Management, Ltd.
(the “Asset Management Company”).
Sekisui House Asset Management, Ltd., previously called Sekisui House Investment Advisors, Ltd., carried out
an absorption-type merger with Sekisui House Asset Management, Ltd. (the “former SHAM”), which was
the asset management company for SHI, on May 1, 2018, with the Asset Management Company being thesurviving company and the former SHAM being the dissolved company, and changed its company name to thecurrent one.

2. Basis of Presentation
SHR maintains its accounting records and prepares its financial statements in accordance with accounting
principles generally accepted in Japan (“Japanese GAAP”), including provisions set forth in the Financial
Instruments and Exchange Act, the Investment Trust Act, the Companies Act and the related regulations, which
are different in certain respects as to the application and disclosure requirements of International Financial
Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of SHR, whichwere prepared in accordance with Japanese GAAP and were presented in its Securities Report filed with the
Kanto Local Finance Bureau. In preparing the accompanying financial statements, certain reclassifications andmodifications have been made to the financial statements issued domestically in order to present them in aformat which is more familiar to readers outside Japan. In addition, the notes to the financial statements include
certain information which might not be required under Japanese GAAP but is presented herein as additional
information.
SHR’s fiscal period is a six-month period, which ends at the end of April and October of each year.
SHR does not prepare consolidated financial statements as it has no subsidiaries.
Unless otherwise specified, amounts have been rounded down to the nearest thousand yen in the accompanying
financial statements and the notes thereto. As a result, the amounts shown in the financial statements and notes
thereto do not necessarily agree with the sum of the individual account balances.

51

3. Summary of Significant Accounting Policies
1. Standards and methods forvaluation of assets

2. Method of depreciation andamortization of non-current assets

3. Accounting for deferred assets

4. Standards for recording allowance

Securities
Other securities
Silent partnership equity interests
The amount equivalent to the share of the net profit or loss of the silent partnershipwill be incorporated.
(1) Property, plant and equipment (including assets in trust)
Depreciation is calculated using the straight-line method.
The useful lives of principal property, plant and equipment are as follows:
Buildings
2-69 years
Structures
2-52 years
Machinery and equipment
2-61 years
Tools, furniture and fixtures
2-15 years(2) Intangible assets
Intangible assets are amortized utilizing the straight-line method.
Leasehold rights in trust are amortized on a straight-line basis over the remaining lifeof each fixed-term land lease contract.
(3) Long-term prepaid expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized utilizing the straight-line
method over the redemption periods.
(2) Investment unit issuance costs
Investment unit issuance costs are amortized utilizing the straight-line method (over 3
years).
Allowance for doubtful accounts
To prepare for possible losses arising from default on receivables, the estimateduncollectable amount is recorded by examining collectability on a case-by-case basis
for doubtful and other specific receivables.

52

5. Standards for revenue and expense
recognition(1) Revenue recognition
The details of the main performance obligations relating to revenue arising fromcontracts with customers and the timing (usual timing of revenue recognition) whensuch performance obligations are satisfied areas follows.
1) Sale of real estate, etc.
With regard to the sale of real estate, etc., income is calculated based on when thebuyer gains control over the real estate, etc., at the point in time the delivery
obligation stipulated in the contract relating to the sale of the real estate issatisfied.
2) Utilities revenue
Utilities revenue mainly represents water utility revenue. With regard to water
utility revenue, revenue is calculated based on the provision of electricity, water,etc. to lessees, as customers, under lease contracts for real estate, etc., and theagreements that are attached to the contracts.
As for the water utility revenue when SHR is deemed to be acting as an agent in
the transaction, revenue is recognized at the net amount after deducting theamount to be paid to other parties from the amount received as the payment forelectricity, gas, etc. supplied by those other parties.

Rent revenue
Other leasebusiness revenue

SHR generally recognizes rent revenue, including fixed rent
revenues, variable rent revenues and common area charges, onan accrual basis over the term of each lease agreement.
Other lease business revenue is recognized in accordance withJapanese GAAP, typically as the amounts under the relevant
agreements become due.

(2) Accounting for property taxes
In accounting for property tax, city planning tax, depreciable asset tax, etc. on realestate, etc., of the tax amount assessed and determined, the amount corresponding to
the applicable calculation period is expensed as expenses related to rent business.
Reimbursement of property tax, paid to the seller upon the acquisition of real estate ortrust beneficiary interests of real estate as assets in trust, is not recognized as expenses
related to rent business in the corresponding fiscal period but included in theacquisition cost of the property.
Property taxes capitalized as a part of the acquisition cost amounted to 396 thousand
yen for the 18th fiscal period and 565 thousand yen for the 19th fiscal period.

53

6. Method of hedge accounting(1) Method of hedge accounting
Deferral hedge accounting is applied. However, the special accounting treatment isapplied to interest rate swaps that meet the criteria for the special accounting treatment.
(2) Hedging instruments and hedged items
Hedging instruments:
Interest rate swap transactions
Hedged items:
Interest on loans(3) Hedging policy
SHR conducts derivative transactions for the purpose of hedging the risks set forth in
its Articles of Incorporation based on its basic risk management policy.
(4) Method for assessing the effectiveness of hedging
Interest rate swaps meet the criteria for the special accounting treatment and anassessment of the effectiveness is thus omitted.
(5)Special accounting treatment
Under the special accounting treatment, interest rate swaps are not measured at fairvalue, but the differential paid or received under the swap agreements is recognized andincluded in or deducted from interest expense. Any amounts received under interest rate
swaps subject to such accounting treatment are not recognized as income on theaccompanying statements of income and retained earnings but rather have the effect of
decreasing interest expenses.
7. Scope of funds in the statement of
The funds (cash and cash equivalents) in the statement of cash flows consist of cash on
cash flows
hand and cash in trust; deposits that can be withdrawn at any time and deposits in trust;and short-term investments with a maturity of three months or less from the date ofacquisition, which are readily convertible to cash and bear only an insignificant risk ofprice fluctuation.
8. Other significant matters serving as
Accounting for trust beneficiary interests of real estate, etc. as assets in trust
basis for preparation of financial
Concerning trust beneficiary interests of real estate, etc. as assets in trust, all accounts
statementsof assets and liabilities within assets in trust as well as all accounts of revenue andexpenses from the assets in trust are recognized in the relevant account items on thebalance sheet and the statement of income and retained earnings.
The following material items of the assets in trust recognized in the relevant accountitems are separately listed on the balance sheet.
1) Cash and deposits in trust2) Buildings in trust; Structures in trust; Machinery and equipment in trust; Tools,
furniture and fixtures in trust; Land in trust; Construction in progress in trust;
Leasehold rights in trust3) Tenant leasehold and security deposits in trust

4．Significant accounting estimates
Impairment Losses of Fixed Assets
1. Amounts recorded in the financial statements

Impairment Losses－(Thousand yen)
19th Fiscal Period(As of April 30, 2024)
4,008,462

Property, plant and equipment－

503,744,567

Intangible Assets－

5,888,571

18th Fiscal Period(As of October 31, 2023)

2.Information on the nature of significant accounting estimates for identified items
Fiscal period under review (April 30, 2024)
In accordance with Accounting Standard for Impairment of Fixed Assets, SHR has adopted the accounting
treatment to reduce the book value of fixed assets to the recoverable amount when recovery of the investment is nolonger expected due to a decline in profitability.
In adopting the accounting treatment, each property owned by SHR is regarded as a single asset group, and SHR
makes an evaluation whether it is required to recognize impairment losses when there are indications of
impairment due to continued negative operating income or cash flow, changes in the range or method of use thatsignificantly reduce the recoverable amounts, a significant deterioration of the business environment, and asignificant decline in the market value, etc.
The estimated future cash flows are used to determine whether to recognize impairment losses. If impairment loss54

es are deemed necessary, the book value is reduced to the recoverable amount, and the reduced amount is recorded
as impairment losses.
In estimating the future cash flow, the assumed rents, property-related expenses, and discount rate, etc. aredetermined by comprehensively considering the market trends and transaction cases of similar properties, etc. inreference to information from outside experts, such as assumptions used for real estate appraisals. The
performance and the market value of each property may be affected by the trends in the real estate rental market
and real estate transaction market.
Since it is difficult to accurately predict these various events, changes in the assumptions used for the estimates
may affect financial position, operating results, and cash flows of SHR in the following fiscal period.

55

5. Notes to Balance Sheet*1. Minimum net assets designated in Article 67-4 of the Investment Trust Act(Thousand yen)
18th Fiscal Period(As of October 31, 2023)

19th Fiscal Period(As of April 30, 2024)
50,00050,0002. Commitment line agreement
SHR has entered into a commitment line agreement with three financial institutions in order to secure
flexible and stable financing.
(Thousand yen)
19th Fiscal Period(As of April 30, 2024)

18th Fiscal Period(As of October 31, 2023)
Total amount of commitment line

15,000,000

15,000,000－－

15,000,000

15,000,000

Balance executed as loans
Unused line of credit*3. Status of cancellation of own investment units
18th Fiscal Period(As of October 31, 2023)
Total number of units cancelled
Total amount cancelled

19th Fiscal Period(As of April 30, 2024)

49,651 units

49,651 units

3,999,964 thousand yen

3,999,964 thousand yen(Note) There were no cancellations of own investment units during the fiscal period under review.

*4. Matters concerning accounting for reserve and reversal of reserve for temporary difference adjustments(Thousand yen)
19th Fiscal Period(As of April 30, 2024)

18th Fiscal Period(As of October 31, 2023)
Gain on negative goodwill (*)
1,556,827－

Balance at beginning of period

194,129－

Reserve amount during period－－

Reversal amount during period

194,129－－－

Appropriated for distributions－

Initial amount

Balance at end of period
Reason for reserve and reversal(*) This is part of the gain on negative
goodwill that occurred in the pastfiscal years, and from the fiscal period
following the fiscal period in which it
was accumulated, SHR has planned toreverse 1% or more of thecorresponding amount divided
equally over 50 years and apply it tocash distributions, and then complete
to reverse in the current fiscal period.

56―

*5. Allowance for Temporary Difference Adjustments
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
1. Reason for provision, related assets etc. and amount of provision
Related assets,
etc.

Reason forprovision

InitialamountBalance at
beginning of
periodAmount ofprovision
during period

Amount ofreversalduring period

Balance at
end of period

Reason forreversal

Buildings intrust, etc.

Excessdepreciation
related todepreciation atmerger

63,004－63,004－63,004－

Deferred gains
or losses onhedgesIncurrence ofloss onvaluation ofinterest swaps

7,099

－

7,099

－

7,099

－

70,103－70,103－70,103Total

2. Specific method of reversal
Item

Method of reversal
In principle, the allowance for temporary difference adjustments related to amerger is not reversed.
Scheduled to be reversed based on changes in fair value of derivatives as hedging
instruments.

Buildings in trust, etc.
Deferred gains or losses on hedges

19th Fiscal Period (From November 1, 2023 to April 30, 2024)
1. Reason for provision, related assets etc. and amount of provision
Related assets,
etc.

Reason forprovision

InitialamountBalance at
beginning of
periodAmount ofprovision
during period

Amount ofreversalduring period

Balance at
end of period

Reason forreversal

Buildings intrust, etc.

Excessdepreciation
related todepreciation atmerger366,727

63,004

303,722－366,727－

Deferred gains
or losses onhedgesIncurrence ofloss on valuationof interest swaps

7,099

7,099

－

4,323

2,775

Changes in fairvalue ofderivatives

Gain on sale ofreal estate
properties

Lump-sum record
the expensesof split sale

945,000－

945,000－

945,000－

1,318,826

70,103

1,248,722

4,323

1,314,502

Total

2. Specific method of reversal
Item
Buildings in trust, etc.
Deferred gains or losses on hedges
Gain on sale of real estate properties

Method of reversal
In principle, the allowance for temporary difference adjustments related to amerger is not reversed.
Schedule to be reversed based on changes in fair value of derivatives as hedging
instruments.
Schedule to be reversed as of sale of applicable properties.

57

6. Notes to Statement of Income and Retained Earnings*1. Breakdown of property-related operating revenue and expenses
18th Fiscal Period(From May 1, 2023
to October 31, 2023)
A.

B.

C.

Property-related operating revenue
Rent revenue – real estate
Rental income
Other
Other lease business revenue
Utilities revenue
Other
Total property-related operating revenue
Property-related operating expenses
Expenses related to rent businessSubcontract expenses
Property management fees
Trust fees
Utilities expenses
Property and other taxes
Insurance expenses
Repair expenses
Depreciation
Other expenses related to rent businessTotal property-related operating expenses
Property-related operating income [A − B]

14,521,624
372,922257,660
232,230

14,894,546

489,891
15,384,437(Thousand yen)
19th Fiscal Period(From November 1 2023
to April 30, 2024)

14,385,078
376,908
189,499
265,288623,370
481,934
38,173438,325
1,134,233

614,346
537,124
44,008379,968
1,224,156

17,824
408,033
2,637,563
816,690

17,838411,154
2,707,623
847,501

6,596,150
6,596,150
8,788,287

14,761,986

454,787
15,216,774

6,783,722
6,783,722
8,433,052*2. Breakdown of gain on sale of real estate properties
18th Fiscal Period (From May 1, 2023 to October 31, 2023)(Thousand yen)
Sha Maison Stage Kanazawa Nishiizumi
Proceeds from sale of real estate property
Cost of real estate property
Other sales expenses
Gain on sale of real estate property

1,100,000
984,307
38,77676,915(Thousand yen)

Gotenyama SH Building
Proceeds from sale of real estate property
Cost of real estate property
Other sales expenses
Gain on sale of real estate property

7,000,000
4,904,756
1,074,973
1,020,270

19th Fiscal Period (From November 1, 2023 to April 30, 2024)(Thousand yen)
Garden City Shinagawa Gotenyama
Proceeds from sale of real estate property
Cost of real estate property
Other sales expenses
Loss on sale of real estate property

31,110,000
35,327,086
7,213
4,224,299

58

(Thousand yen)
Hommachi Garden City (Hotel portion)
Proceeds from sale of real estate property
Cost of real estate property
Other sales expenses
Gain on sale of real estate property

21,350,000
16,516,847
66,402
4,766,750(Thousand yen)

Gotenyama SH Building
Proceeds from sale of real estate property
Cost of real estate property
Other sales expenses
Gain on sale of real estate property

7,000,000
4,890,791
21,2402,087,968*3. Impairment losses
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.
19th Fiscal Period (From November 1, 2023 to April 30, 2024)
Impairment losses for the fiscal period ended April 30,2024 were as follows:(Thousand yen)
Property Name

LocationType

Impairment losses

Garden City Shinagawa Gotenyama

Shinagawa-ku, Tokyo

Land in trust, etc.

4,008,462

In assessing impairment losses, each property owned by SHR is regarded as a single asset group.
The book value for one asset group planned to be sold was reduced to its recoverable amount and theamount of the reduction(4,008,462 thousand yen) was recorded under operating expenses as impairment
losses.
The breakdown of the impairment losses is buildings in trust of 573,075 thousand yen, structures in trust of
33 thousand yen, tools, furniture and fixtures in trust of 100 thousand yen, and land in trust of 3,435,252
thousand yen.
The impairment losses on the sale are deemed to have the nature of operating expenses and thus recorded
under operating expenses in accordance with Article 48, Paragraph 2 of the Regulation on Accountings ofInvestment Corporations.
The recoverable amount for the asset group is measured at net realizable value. Net realizable value is calculated
by deducting the estimated costs of disposal from the actual selling price.

7. Notes to Statement of Changes in Net Assets*1 Total number of authorized investment units and total number of investment units issued
18th Fiscal Period(From May 1, 2023
to October 31, 2023)

19th Fiscal Period(From November 1 2023
to April 30, 2024)

Total number of authorized investment units

20,000,000units

20,000,000units

Total number of investment units issued

4,381,482units

4,381,482units598. Notes to Statement of Cash Distributions*1 Allowance for Temporary Difference Adjustments
18th Fiscal Period (From May 1, 2023 to October 31,2023)
1. Reason for provision, related assets etc. and amount of provision

Related assets, etc.

Reason for provision(Thousand yen)Amount of allowancefor temporary
difference adjustments

Buildings in trust, etc.

Excess depreciation related to depreciation at merger

303,722

Gain on sale of real estate properties

Record the split sale expences as combined calculation

945,000

Total

1,248,722

2. Reason for reversal, related assets,etc. and amount of reversal

Related assets, etc.
Deferred gains or losses on hedges

Reason for reversal
Changes in fair value of derivatives as hedging instruments.
Total(Thousand yen)Amount of allowancefor temporary
difference adjustments
4,323
4,323

3. Specific method of reversal
Item
Buildings in trust, etc.
Deferred gains or losses on hedges
Gain on sale of real estate properties

Method of reversal
In principle, the allowance for temporary difference adjustments related to amerger is not reversed.
Scheduled to be reversed based on changes in fair value of derivatives as hedging
instruments.
Scheduled to be reversed as of sale of applicable properties.

19th Fiscal Period (From November 1 2023 to April 30, 2024)
1. Reason for provision, related assets etc. and amount of provision

Related assets, etc.

Reason for provision(Thousand yen)Amount of allowancefor temporary
difference adjustments

Buildings in trust, etc.

Excess depreciation related to depreciation at merger

Land in trust, etc.

Record of impairment losses

3,991,040

Gain on sale of real estate properties

Record the split sales expenses as combined calculation(105,000)

Buildings in trust, etc.

Excess depreciation related to impairment losses

50,783

Leasehold rights in trust

Depreciation of leasehold rights in trust

55,118

Total

231,806

4,223,748

2. Reason for reversal, related assets,etc. and amount of reversal

Related assets, etc.
Deferred gains or losses on hedges

Reason for reversal
Changes in fair value of derivatives as hedging instruments.
Total(Thousand yen)Amount of allowancefor temporary
difference adjustments
2,775
2,775

60

3. Specific method of reversal
Item
Buildings in trust, etc.
Deferred gains or losses on hedges

Method of reversal
In principle, the allowance for temporary difference adjustments related to amerger is not reversed.
Schedule to be reversed based on changes in fair value of derivatives as hedging
instruments.

Gain on sale of real estate properties

Schedule to be reversed as of sale of applicable properties.

Impairment losses

Schedule to be reversed as of sale of applicable properties.

Depreciation as Impairment losses

Schedule to be reversed as of sale of applicable properties were processed
impairment losses.

Leasehold rights in trust

Schedule to be reversed such as of sale of applicable properties.

9. Notes to Statement of Cash Flows*1 Reconciliation of cash and cash equivalents at end of period to the corresponding balance sheet items
18th Fiscal Period(From May 1, 2023
to October 31, 2023)(Thousand yen)
19th Fiscal Period(From November 1, 2023
to April 30, 2024)

Cash and deposits

15,062,344

33,680,216

Cash and deposits in trust

19,762,618

17,845,283

Cash and cash equivalents

34,824,962

51,525,500

10. Lease Transactions
Operating lease transactions as lessee
Future minimum lease payments
18th Fiscal Period(As of October 31, 2023)(Thousand yen)
19th Fiscal Period(As of April 30, 2024)

Due within 1 year

779,496

823,452

Due after 1 year

40,751,255

42,635,018

41,530,751

43,458,470

Total

Operating lease transactions as lessor
Future minimum lease income
18th Fiscal Period(As of October 31, 2023)(Thousand yen)
19th Fiscal Period(As of April 30, 2024)

Due within 1 year

7,965,655

6,068,645

Due after 1 year

12,977,202

15,972,781

20,942,858

22,041,426

Total

61

11. Financial Instruments
1. Status of financial instruments(1) Policy for financial instruments
Making it a policy to conduct stable and sound financial operations that would contribute to steady
growth of its investment assets as well as efficient management and stability of management, SHR shallprocure funds through borrowings or the issuance of investment corporation bonds for the purposes ofutilizing such funds for the acquisition of assets, payments of repair expenses or distributions, operationsof SHR, repayment of obligations or other.
For derivative transactions, the policy is that derivative transactions shall be limited to those for the
purpose of hedging the risk of fluctuations in interest rates on liabilities and foreign currency risk in thecase of overseas real estate investments, and that no speculative transactions shall be conducted.
(2) Description of financial instruments and associated risks, and risk management structure
The funds procured through borrowings shall be used mainly for the acquisition of investment assets andfor repayment of loans.
The availability and terms and conditions of borrowings and the issuance of investment corporation bonds
may be affected by SHR’s financial creditworthiness, the interest rate situation and other factors, andthere is thus no guarantee that funds can be procured at SHR’s desired timing and terms and conditions.
Furthermore, loans with floating interest rates are susceptible to subsequent market trends.
SHR manages and limits the liquidity risk and the risk of fluctuations in interest rates associated with suchfund procurement by diversifying fund procurement sources and means and by maintaining the ratio ofinterest-bearing liabilities to total assets and the ratio of floating-rate loans to total loans at appropriate
levels. Furthermore, for certain loans with floating interest rates, derivative transactions (interest rate swap
transactions) are used as a hedging instrument for hedging the risk of fluctuations in interest rates basedon rules that set forth the basic policy for handling derivative transactions and risk management.
Investment securities are investments in TK (tokumei kumiai) and are exposed to the credit risk of theissuer and the risk of fluctuations in the value of real estate, etc.
(3) Supplementary explanation of matters concerning fair value of financial instruments
As the calculations involve variable factors, there may be cases where the corresponding values will vary
when different assumptions are adopted. In addition, the contract amounts of derivative transactions in“2. Matters concerning fair value of financial instruments” do not represent the market risk involved in
the derivative transactions.

62

2. Matters concerning fair value of financial instruments
The carrying amount and fair value of financial instruments as of October 31, 2023, and April 30, 2024
and the difference between them are as follows.
18th Fiscal Period (As of October 31, 2023)
Investments in TK (tokumei kumiai) real estate equity interest (Note 3) are not included in the table below.
Information on “Cash and deposits,” “Cash and deposits in trust,” and “Short-term loans
payable” is omitted as these are settled within a short period of time, thus the fair value approximates thebook value. Also, as “Tenant leasehold and security deposits in trust” are immaterial, related notes areomitted.
(Thousand yen)Book value recordedon the balance sheet

Fair value

Difference(1) Current portion of investment corporation bonds

10,000,000

10,011,381

11,381(2) Current portion of long-term loans payable

31,545,000

31,542,285(2,714)(3) Investment corporation bonds

21,500,000

21,002,050(497,950)(4) Long-term loans payable

191,197,000

188,384,417(2,812,582)

254,242,000

250,940,134(3,301,865)(2,775)(2,775)－(2,775)(2,775)－

Total liabilities(5) Derivative transactions (*)
Total derivative transactions (*)(*) Amounts arising from derivative transactions are shown on a net basis with any amounts inside square parentheses ( )indicating a net liability position.
(Note 1) Method of calculating the fair value of financial instruments(1) Current portion of investment corporation bonds (3) Investment corporation bonds
The fair value of investment corporation bonds is based on the quoted market price.
Of the investment corporation bonds issued by SHR, the fair value of those with a market price is based on the quoted
market price. For those where it is difficult to obtain the fair value based on the quoted market price, the fair value isbased on the method of calculating by discounting the combined total of principal and interest by a reasonably estimatedinterest rate applicable when conducting similar fund procurement for the remaining period of the bonds.
(2) Current portion of long-term loans payable (4) Long-term loans payable
As the long-term loans payable with floating interest rates reflect interest rate changes within a short period of time, thefair value is approximately the same as the book value and is thus stated at that book value (provided, however, that for
long-term loans payable with floating interest rates that qualify for the special accounting treatment of interest rate swaps(please refer to “13. Derivative Transactions”), the fair value is based on the method of calculation in which the sum
total amount of principal and interest accounted for with the interest rate swap is discounted by the rate assumed in theevent of a similar new drawdown). In addition, for those with fixed interest rates, the fair value is based on the method of
calculation in which the sum total amount of principal and interest is discounted by the rate assumed in the event of asimilar new drawdown corresponding to the remaining period.
(5) Derivative transactions
Please refer to “13. Derivative Transactions”.

6319th Fiscal Period (As of April 30, 2024)
Investments in TK (tokumei kumiai) real estate equity interest (Note 3) are not included in the table below.
Information on “Cash and deposits,” “Cash and deposits in trust,” and “Short-term loans
payable” is omitted as these are settled within a short period of time, thus the fair value approximates thebook value. Also, as “Tenant leasehold and security deposits in trust” are immaterial, related notes areomitted.
(Thousand yen)Book value recordedon the balance sheet

Fair value

Difference(1) Current portion of investment corporation bonds

12,000,000

11,993,198(6,802)(2) Current portion of long-term loans payable

32,505,000

32,552,118

47,118(3) Investment corporation bonds

16,500,000

16,117,000(383,000)(4) Long-term loans payable

191,077,000

189,318,127(1,758,872)

252,082,000

249,980,444(2,101,555)

(－)

(－)

－

(－)

(－)

－

Total liabilities(5) Derivative transactions (*)
Total derivative transactions (*)(*) Amounts arising from derivative transactions are shown on a net basis with any amounts inside square parentheses ( )indicating a net liability position.
(Note 1) Method of calculating the fair value of financial instruments(1) Current portion of investment corporation bonds (3) Investment corporation bonds
The fair value of investment corporation bonds is based on the quoted market price.
Of the investment corporation bonds issued by SHR, the fair value of those with a market price is based on the quoted
market price. For those where it is difficult to obtain the fair value based on the quoted market price, the fair value isbased on the method of calculating by discounting the combined total of principal and interest by a reasonably estimatedinterest rate applicable when conducting similar fund procurement for the remaining period of the bonds.
(2) Current portion of long-term loans payable (4) Long-term loans payable
As the long-term loans payable with floating interest rates reflect interest rate changes within a short period of time, thefair value is approximately the same as the book value and is thus stated at that book value (provided, however, that for
long-term loans payable with floating interest rates that qualify for the special accounting treatment of interest rate swaps(please refer to “13. Derivative Transactions”), the fair value is based on the method of calculation in which the sum
total amount of principal and interest accounted for with the interest rate swap is discounted by the rate assumed in theevent of a similar new drawdown). In addition, for those with fixed interest rates, the fair value is based on the method of
calculation in which the sum total amount of principal and interest is discounted by the rate assumed in the event of asimilar new drawdown corresponding to the remaining period.
(5) Derivative transactions
Please refer to “13. Derivative Transactions”.

64

(Note 2) Repayment schedule of investment corporation bonds and loans after the closing date
18th Fiscal Period (As of October 31, 2023)(Thousand yen)
Due after
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

Investment corporation bonds

10,000,000

9,000,000

2,000,000－－

10,500,000

Long-term loans payable

31,545,000

34,213,000

25,780,000

30,197,000

29,027,000

71,980,000

19th Fiscal Period (As of April 30, 2024)(Thousand yen)
Due after
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

Investment corporation bonds

12,000,000

4,000,000

2,000,000－－

10,500,000

Long-term loans payable

32,505,000

35,843,000

19,637,000

36,290,000

30,487,000

68,820,000(Note 3) Investments in TK (tokumei kumiai) real estate equity interest
In accordance with the treatment stipulated in Paragraph 24-16 of “Implementation Guidance on Accounting for Fair Value
Measurement” (ASBJ Guidance No.31, June 17, 2021, Accounting Standards Board of Japan), matters described in Paragraph4-1 of “Implementation Guidance on Fair Value Measurement of Financial Instruments” (ASBJ Guidance No.19, March 31,2020) have been omitted. The carrying amount on the balance sheet for investments in TK real estate equity interest according to
the above implementation is 668,655 thousand yen for the 18th fiscal period and 649,002 thousand yen for the 19th fiscal
period.

12. Securities
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.
19th Fiscal Period (From November 1, 2023 to April 30, 2024)
Not applicable.

13. Derivative Transactions
1. Derivatives to which hedge accounting is not applied
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.
19th Fiscal Period (From November 1, 2023 to April 30, 2024)
Not applicable.
2. Derivatives to which hedge accounting is applied
The following is the contract amount or the amount equivalent to the principal provided in the contract asof the closing date for each method of hedge accounting.

65

18th Fiscal Period (As of October 31, 2023)(Thousand yen)
Method of hedge
accounting

Type ofderivativetransactions

Contract amount
Main hedged item

Of which,over 1 year

Fair value

Calculation
method offair value

Interest rate swap
transaction
Floating interest
Long-term loans
Principal method
4,750,000－(2,775)(Note1)rate receivablepayableand fixed interest
rate payable
Interest rate swap
transaction
Special accounting
Floating interest
Long-term loans
treatment for
103,301,000
90,632,000(Note2)－rate receivablepayableinterest rate swaps
and fixed interest
rate payable(Note1) Fair value is quoted by counterparties based on the prevailing market interest rates.
(Note2) As derivative transactions qualifying for the special accounting treatment for interest rate swaps are accounted for with thehedged long-term loans payable, the fair value is included in the fair value of the underlying long-term loans payable (pleaserefer to “ 11. Financial Instruments; 2. Matters concerning fair value of financial instruments (Note 1)”).

19th Fiscal Period (As of April 30, 2024)(Thousand yen)
Method of hedge
accounting

Type ofderivativetransactions

Contract amount
Main hedged item

Of which,over 1 year

Fair value

Calculation
method offair value

Interest rate swap
transaction
Special accounting
Floating interest
Long-term loans
treatment for
96,951,000
76,632,000(Note)－
rate receivablepayableinterest rate swaps
and fixed interest
rate payable(Note) As derivative transactions qualifying for the special accounting treatment for interest rate swaps are accounted for with thehedged long-term loans payable, the fair value is included in the fair value of the underlying long-term loans payable (pleaserefer to “ 11. Financial Instruments; 2. Matters concerning fair value of financial instruments (Note 1)”).

14. Retirement Benefits
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.
19th Fiscal Period (From November 1, 2023 to April 30, 2024)
Not applicable.

6615. Income Taxes
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause
18th Fiscal Period(As of October 31, 2023)
Deferred tax assets
Valuation difference on assets acquired due to merger
Amortization of leasehold rights in trust
Sale cost of split sale
Deferred gains or losses on hedges
Impairment losses
Amortization difference of impairment losses processing
Accrued business taxes not deductible from taxable income
Deferred tax assets (subtotal)
Valuation allowance for total deductible temporary difference
Total deferred tax assets
Net deferred tax assets

1,467,053
98,235297,297873－－
154
1,863,613(1,863,459)
154
154(Thousand yen)
19th Fiscal Period(As of April 30, 2024)
1,458,749
114,383
264,264－
1,261,062
15,976
7
3,114,443(3,114,436)77

2. Breakdown of major items that caused significant differences between the statutory tax rate and theeffective income tax rate after application of tax-effect accounting

Statutory tax rate
[Adjustments]
Deductible cash distribution
Changes in valuation allowance
Sale cost of split sale
Other
Effective income tax rate after application of tax-effect accounting

18th Fiscal Period(As of October 31, 2023)
31.46

(%)
19th Fiscal Period(As of April 30, 2024)
31.46(36.75)
1.31
4.01
0.01
0.04

(58.28)
26.83
－
0.01
0.02

16. Profit or Loss of Affiliates Accounted for Under the Equity Method
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.
19th Fiscal Period (From November 1, 2023 to April 30, 2024)
Not applicable.

17. Transactions with Related Parties
1. Parent company and major corporate unitholders.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.
19th Fiscal Period (From November 1, 2023 to April 30, 2024)
Not applicable.
2. Subsidiaries and affiliates.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.
19th Fiscal Period (From November 1, 2023 to April 30, 2024)
Not applicable.

673. Sister companies.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.
19th Fiscal Period (From November 1, 2023 to April 30, 2024)
Not applicable.
4. Directors and major individual unitholders.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.
19th Fiscal Period (From November 1, 2023 to April 30, 2024)
Not applicable.

18. Revenue Recognition
1. Breakdown of revenue from contracts with customers
18th Fiscal Period (From May 1, 2023 to October 31, 2023)(Thousand yen)
Revenue from contracts
with customers (Note1)
Sale of real estate, etc.

Net sales to external customers

8,100,000

Utilities revenue

1,097,186

257,660

257,660－

15,130,798

8,357,660

16,485,645

Other
Total

(Note2)(Note1) Rental revenue, etc. subject to ASBJ Statement No. 13, “Accounting Standard for Lease Transactions” is not included in“Revenue from Contracts with Customers” because such revenue is excluded from the application of the revenue
recognition standard. Revenues from contracts with major customers consist of revenues from the sale of real estate and otherassets and utilities revenue.
(Note2) Regarding the sale of real estate, etc., in accordance with Article 48, Paragraph 2 of the Regulations on Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 47, 2006), gain on the sale of real estate properties, etc. is shown inthe statement of income and retained earnings after deducting cost of real estate property and direct sales expenses from theproceeds from the sale of real estate, etc.

19th Fiscal Period (From November 1, 2023 to April 30, 2024)(Thousand yen)
Revenue from contracts
with customers (Note1)
Sale of real estate, etc.

Net sales to external customers

59,460,000

Utilities revenue
Other
Total

(Note2)2,630,418

189,499

189,499－

15,034,044

59,649,499

17,853,962(Note1) Rental revenue, etc. subject to ASBJ Statement No. 13, “Accounting Standard for Lease Transactions” is not included in“Revenue from Contracts with Customers” because such revenue is excluded from the application of the revenue
recognition standard. Revenues from contracts with major customers consist of revenues from the sale of real estate and otherassets and utilities revenue.
(Note2) Regarding the sale of real estate, etc., in accordance with Article 48, Paragraph 2 of the Regulations on Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 47, 2006), gain on the sale of real estate properties, etc. is shown inthe statement of income and retained earnings after deducting cost of real estate property and direct sales expenses from theproceeds from the sale of real estate, etc.

68

2. Information to understand revenue from contracts with customers
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
As stated in “3. Summary of Significant Accounting Policies”
19th Fiscal Period (From November 1, 2023 to April 30, 2024)
As stated in “3. Summary of Significant Accounting Policies”
3. Information on the relationship between performance obligations under contracts with customers and cash
flows resulting from such contracts, and the amount and timing of proceeds expected to be recognized in
the next fiscal period or thereafter from contracts with customers existing at the end of this fiscal period(1) Balance of contract assets and contract liabilities, etc.
(Thousand yen)
19th Fiscal Period(From November 1 2023
to April 30, 2024)

18th Fiscal Period(From May 1, 2023
to October 31, 2023)
Claims arising from contracts with customers(Balance at beginning of period)
Claims arising from contracts with customers(Balance at end of period)
Contract assets(Balance at beginning of period)
Contract assets(Balance at end of period)
Contract liabilities(Balance at beginning of period)
Contract liabilities(Balance at end of period)

52,40455,28955,28935,535

－

－

－

－

－

－

－

－

(2) Transaction prices allocated to the remaining performance obligations
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
As of October 31, 2023, the transaction price allocated to the remaining performance obligations related
to the sale of real estate, etc. is 63,000,000 thousand yen for which the sale and purchase agreement wasentered into on March 29, 2023.
SHR assumes to recognize revenue for the remaining performance obligations as follows upon delivery ofmentioned real estate.

2

End of April 2024

7,000,000 (10%)(Thousand yen)Calculation period forrevenue recognition
Ending April 2024 (FP 19)

3

End of October 2024

7,000,000 (10%)

Ending October 2024 (FP 20)

4End of April 2025

7,000,000 (10%)

Ending April 2025 (FP 21)

5

End of October 2025

7,000,000 (10%)

Ending October 2025 (FP 22)

6

End of April 2026

7,000,000 (10%)

Ending April 2026 (FP 23)

7

End of October 2026

7,000,000 (10%)

Ending October 2026 (FP 24)

8

End of April 2027

7,000,000 (10%)

Ending April 2027 (FP 25)

9End of October 2027

7,000,000 (10%)

Ending October 2027 (FP 26)

10

End of April 2028

7,000,000 (10%)

Ending April 2028 (FP 27)

Planned disposition date

Planned disposition priceWith regard to utilities revenue, SHR recognizes proceeds in the amount that SHR has the right to claimin accordance with Clause 19 of the Accounting Standard for Revenue Recognition, because SHR has theright to receive from the lessee, as the customer, an amount of compensation directly corresponding to thevalue of the items provided up to the end of the fiscal period. Accordingly, SHR applies the provisions ofClause 80-22(2) of Accounting Standard for Revenue Recognition and does not include related
information in the notes on transaction prices allocated to the remaining performance obligations.
69

19th Fiscal Period (From November 1, 2023 to April 30, 2024)
As of April 30, 2024, the transaction price allocated to the remaining performance obligations related tothe sale of real estate, etc. is 56,000,000 thousand yen for which the sale and purchase agreement wasentered into on March 29, 2023 and 74,390,000 thousand yen for which the sale and purchase agreement
was entered into on March 19, 2024.
SHR assumes to recognize revenue for the remaining performance obligations as follows upon delivery ofmentioned real estate.
1.Agreement allocation as of March 29, 2023

3

End of October 2024

7,000,000 (10%)(Thousand yen)Calculation period forrevenue recognition
Ending October 2024 (FP 20)

4End of April 2025

7,000,000 (10%)

Ending April 2025 (FP 21)

5

End of October 2025

7,000,000 (10%)

Ending October 2025 (FP 22)

6

End of April 2026

7,000,000 (10%)

Ending April 2026 (FP 23)

7

End of October 2026

7,000,000 (10%)

Ending October 2026 (FP 24)

8

End of April 2027

7,000,000 (10%)

Ending April 2027 (FP 25)

9End of October 2027

7,000,000 (10%)

Ending October 2027 (FP 26)

10

End of April 2028

7,000,000 (10%)

Ending April 2028 (FP 27)

Planned disposition date

Planned disposition price2.Agreement allocation as of March 19, 2024

May 1, 2024

58,815,000(Thousand yen)Calculation period forrevenue recognition
Ending October 2024 (FP 20)

November 1, 2024

15,575,000

Ending April 2025 (FP 21)

Planned disposition date

Planned disposition priceWith regard to utilities revenue, SHR recognizes proceeds in the amount that SHR has the right to claimin accordance with Clause 19 of the Accounting Standard for Revenue Recognition, because SHR has theright to receive from the lessee, as the customer, an amount of compensation directly corresponding to thevalue of the items provided up to the end of the fiscal period. Accordingly, SHR applies the provisions ofClause 80-22(2) of Accounting Standard for Revenue Recognition and does not include related
information in the notes on transaction prices allocated to the remaining performance obligations.

19. Asset Retirement Obligations
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.
19th Fiscal Period (From November 1, 2023 to April 30, 2024)
Not applicable.

7020. Investment and Rental Properties
SHR owns rental office buildings, etc. in Tokyo and other areas for the purpose of earning revenue fromleasing. The following is the carrying amount, amount of increase (decrease) during the period and fair value ofthese investment and rental properties.
18th Fiscal Period(From May 1, 2023
to October 31, 2023)(Thousand yen)
19th Fiscal Period(From November 1 2023
to April 30, 2024)

Carrying amount
Balance at beginning of period

537,989,124

530,985,035

Amount of increase (decrease) during period(7,004,088)(21,632,589)

Balance at end of period

530,985,035

509,352,445

633,434,000

613,549,000

Fair value at end of period(Note 1) Carrying amount is the book value less accumulated depreciation.
(Note 2) Net increase during the 18th fiscal period is mainly attributable to capital expenditure (1,001,547 thousand yen) and theacquisition of a new property (521,153 thousand yen), offset by a decrease during the period mainly attributable to thedisposition of 2 properties (5,889,063 thousand yen) the SHR had owned and depreciation (2,637,563 thousand yen) . Net
increase during the 19th fiscal period is mainly attributable to capital expenditure (1,026,323 thousand yen) and theacquisition of 11 new properties (40,793,160 thousand yen), offset by a decrease during the period mainly attributable todisposition of 3 properties (56,734,725 yen) ,impairment losses (4,008,462 thousand yen) and depreciation (2,707,632
thousand yen) .
(Note 3) Fair value at the end of the period is the appraisal value by outside real estate appraisers.Of the fair value at end of the current
period, Gotenyama SH Building consists of total disposition price(3rd to 10th) contracted on March 29, 2023, Garden City
Shinagawa Gotenyama consists of dispotion price contracted on March 19,2024, and Hommachi Garden City(Office building
portion) consists of dispotion price contracted on May 1,2024 and November 1,2024.

The property-related operating income in the 18th and 19th fiscal periods for investment and rental properties
is presented in “5. Notes to Statement of Income and Retained Earnings”.

21. Segment Information
1. Segment information
Segment information is omitted because SHR operates a single segment, which is the real estate leasing
business.
2. Related information
18th Fiscal Period (From May 1, 2023 to October 31, 2023)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single
products and services category are in excess of 90% of operating revenue on the statement of income andretained earnings.
(2) Information about geographic areas
1) Operating revenue
Information about net sales is omitted because net sales to external customers in Japan are in excessof 90% of operating revenue on the statement of income and retained earnings.
2) Property, plant and equipment
Information about property, plant and equipment is omitted because the property, plant andequipment located in Japan is in excess of 90% of property, plant and equipment on the balance sheet.
(3) Information about major customers(Thousand yen)
Name of customer

Operating revenue

Name of related segment

TIS Inc.

2,108,683

Real estate leasing businessSekisui House, Ltd.

1,363,712

Real estate leasing business71

19th Fiscal Period (From November 1, 2023 to April 30, 2024)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single
products and services category are in excess of 90% of operating revenue on the statement of income andretained earnings.
(2) Information about geographic areas
1) Operating revenue
Information about net sales is omitted because net sales to external customers in Japan are in excessof 90% of operating revenue on the statement of income and retained earnings.
2) Property, plant and equipment
Information about property, plant and equipment is omitted because the property, plant andequipment located in Japan is in excess of 90% of property, plant and equipment on the balance sheet.
(3) Information about major customers(Thousand yen)
Name of customer

Operating revenue

Name of related segment

Godo Kaisha Pothos

4,766,750

Real estate leasing business

TIS Inc.

3,067,461

Real estate leasing businessSekisui House, Ltd.

1,362,595

Real estate leasing business

22. Per Unit Information
18th Fiscal Period(From May 1, 2023
to October 31, 2023)

19th Fiscal Period(From November 1 2023
to April 30, 2024)

Net assets per unit

66,924 yen

66,079 yen

Net income per unit

1,690 yen

1,130 yen

(Note 1) Net income per unit is calculated by dividing net income by the daily weighted average number of investment units.
In addition, diluted net income per unit is not stated because there are no dilutive investment units.
(Note 2) The basis for calculating net income per unit is as follows.
18th Fiscal Period(From May 1, 2023
to October 31, 2023)
Net income (Thousand yen)Amount not attributable to common unitholders(Thousand yen)
Net income attributable to common investment units(Thousand yen)
Average number of investment units during period(Units)72

19th Fiscal Period(From November 1 2023
to April 30, 2024)

7,408,653

4,954,266－－

7,408,653

4,954,266

4,381,482

4,381,482

23. Significant Subsequent Events(ⅰ) Acquisition of Asset
SHR acquired the following overseas real estate through investment in two LLCs located in the U.S. thatown overseas real estate.
a. Investment in overseas real estate holding corporations
Name

Location

Investment price (Note)

SHR Boren Avenue

Investment date

Investment ratio

May 28, 2024

100.0%

164 mm USD(25,830 mm yen)Partners I, LLC

Delaware,
U.S.A.

SHR Boren Avenue

164 mm USD(25,830 mm yen)Partners Ⅱ, LLC(Note) Converted into yen at the exchange rate at the time of investment, 1USD = 156.95 JPY.

b. Real estate acquired by the above two overseas real estate holding corporations
Property name

Type of use

Acquisition price

Location(Note 1)

Acquisition dateSeller

NASH – Holland Boren& Lenora, LLC(Note 1) "Acquisition price" for "The Ivey on Boren" is converted based on the exchange rate between the U.S. dollar and theJapanese yen at the time of acquisition, which is 1USD = 156.95 JPY.
(Note 2) The two overseas SPCs acquired ownership interest in all of the exclusively-owned portions of the 5th floor through the44th floor above ground and all of the exclusively-owned portions of the 1st floor through the 7th floor undergroundalong with the land equivalent to 19,007 sq/ft (1,765.75 ㎡) which is the total site 21,234 sq/ft (1,972.63 ㎡) multipliedby the ownership interest ratio (89.51%).
The Ivey on Boren(Note 2)

Residence

Seattle, Washington
U.S.A.

328 mm USD(51,479 mm yen)

May 29, 2024(ⅱ) Disposition of Assets
SHR concluded a contract on March 19, 2024 for the disposition of real estate trust beneficiary interests.
The disposition was completed on May 1, 2024 and is scheduled to be completed on November 1, 2024, as
follows.
As a result of these dispositions, SHR expects to record a gain on disposition of real estate of 5,734 million
yen in the fiscal period ending October 31, 2024 (from May 1, 2024 to October 31, 2024) and 3,143
million yen in the fiscal period ending April 30, 2025 (from November 1, 2024 to April 30, 2025).
Property name

Type of use

Location(Planned)(Planned)
disposition pricedisposition date(million yen)

Buyer

(Note 1)

Garden City
Shinagawa Gotenyama(quasi co-ownership interest 49.0%)

Shinagawa-ku,
Tokyo

29,890
May 1,
2024(Note 2)

(quasi co-ownership
Hommachi Gardeninterest 65.0%)
City(Office building(quasi co-ownership
portion)interest 35.0%)

Officebuilding

Godo Kaisha
Gotenyama
Capital28,925
Osaka-shi, Osaka
1,
15,575 November
2024

Godo Kaisha
Pothos(Note 1) "(Planned) disposition price" is the sale and purchase price stated in the trust beneficiary interest transfer agreement
concluded between SHR and the seller (excluding consumption tax, local consumption tax, commission for sales, andother various expenses; rounded down to the nearest million yen).
(Note 2) The amount equivalent to the loss on sale of real estate and other assets arising from such transfer is recorded as an
impairment loss. For details, please refer to "6. Notes to Statement of Income and Retained Earnings *3 Impairment
losses" above.

73

24. Additional Information
1. Disposition of Asset
SHR decided on the disposition of trust beneficiary interest in domestic real estate and entered into apurchase and sale agreement as of March 29, 2023 as follows. The disposition of the quasi co-ownershipinterest in trust beneficiary interest is scheduled to be carried out in 10 equal installments, with 10/100 of
the ownership share to be disposed on each planned disposition date. As of the date of this document, thefirst disposition and the second disposition have been executed, and a gain on sale of real estate properties
is expected to be recorded during each calculation period as follows.
Property name

Type of use

Location

Total disposition
price (Note 1)(million yen)

Planned disposition
date (Note2)

Buyer

Gotenyama SH
Building

Office building

Shinagawa-ku, Tokyo

70,000stated as below

TIS Inc.
(Unit: million yen)

Planned disposition date

Planned disposition priceGain on disposition(Note 2)

(Note 1)(expected) (Note 3)

Calculation period3

End of October 2024

7,000 (10%)

2,095Ending October 2024 (FP 20)

4End of April 2025

7,000 (10%)

2,106Ending April 2025 (FP 21)

5

End of October 2025

7,000 (10%)

2,117Ending October 2025 (FP 22)

6

End of April 2026

7,000 (10%)

2,127Ending April 2026 (FP 23)

7

End of October 2026

7,000 (10%)

2,142Ending October 2026 (FP 24)

8

End of April 2027

7,000 (10%)

2,156Ending April 2027 (FP 25)

9End of October 2027

7,000 (10%)

2,170Ending October 2027 (FP 26)

10

End of April 2028

7,000 (10%)

2,185Ending April 2028 (FP 27)(Note 1) "Total disposition price" and "Planned disposition price" is the sale and purchase price stated in the sale and purchase agreement(excluding consumption tax, local consumption tax, commission for sales, and other various expenses; rounded down to the nearest
million yen).
(Note 2) In the event that the "planned disposition date" is not a business day, the said date will be the immediately preceding business day.
(Note 3) "Gain on disposition (expected)" is the approximate value to be recorded on each planned disposition date as of the date of thisdocument and is subject to change.

74

(7) Supplementary Schedules
19th Fiscal Period (From November 1, 2023 to April 30, 2024)
1. Schedule of securities(1) Shares
Not applicable.
(2) Securities other than shares(Thousand yen)Accruedinterest

Prepaid
accruedinterest

Valuation(Note1)

Valuation
profit/loss

Remarks

Type

Brand Name

Face
value

Book
value

TK (tokumei
kumiai) equity
interest

TK (tokumei kumiai)real estate equity interestin Gemini1 GK TK

480,000

442,898－－442,898－(Note2)

TK (tokumei
kumiai) equity
interest

TK (tokumei kumiai)real estate equity interestin Gemini2 GK TK

220,000

206,103－－206,103－(Note3)Total

700,000

649,002－－649,002－－(Note1) “Valuation” is the book value.
(Note2) Asset management refers to silent partnerships 34.55% quasi co-ownership interest of the trust beneficiary interest in realestate regarding the compartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor
underground through 4th floor above ground and 11th floor through 19th floor above ground of the “Akasaka Garden
City” building, as well as the accompanying right of site (ratio of right of site: 662,768/1,000,000 (or approximately
66.3%)), and has not yet been acquired by SHR.
(Note3) The underlying asset refers to the trust beneficiary interest in real estate of "Ningyocho PREX".

2. Contract amount and fair value of derivative transactions(Thousand yen)Contract amount (Note1)
Category

Transaction other thanmarket transaction

Type

Of which,over 1 year

Interest rate swap transaction
Floating interest rate receivable and fixedinterest rate payable
Total

96,951,000

76,632,000

96,951,000

76,632,000

Fair value(Note2)－(Note2)－(Note1) The contract amount of interest rate swap transactions is based on the notional principal amount.
(Note2) The fair value is omitted because the transaction meets the criteria for the special accounting treatment under the AccountingStandards for Financial Instruments.

75

3. Schedule of property, plant and equipment and intangible assets(Thousand yen)Type of assets

Buildings
in trust
Structuresin trust
Machineryandequipment intrust
Property, Tools,
plant and furniture andequipment fixturesin trust

Balanceat beginningof period

Amount ofdecreaseAmount ofduringincrease
periodduring(Of which,periodimpairment
losses)184,234,435 10,406,535

Notes

2,461,025

151,242,450

*1
*2
*3
*3

For theperiod1,557,352

395,21132,4401,162,140

2,410,950

53,5104,815

2,459,646

597,71758,8591,861,929

1,150,034

115,061

9,281
(100)

1,255,814

537,262

100,179

718,552*3

47,622,640
348,497,395(3,435,252)－－

348,497,395

*1
*2
*3

262,100－－

262,100

63,709,723
532,675,742(4,008,462)

28,931,174

2,652,504

503,744,567－

Subtotal

15,997,538
178,643,432 27,400,982(573,075)

Net balanceat end ofperiod75,448(33)

Constructionin progress
intrustIntangible
Other
assetsoraccumulated
amortization

64,023364,940,202 31,179,833

Leaseholdrights in trust

Balanceat end ofperiod

1,568,777

Land in trust

Subtotal

Accumulated depreciation

262,100

554,304,400 42,081,065－

6,278,442－－

6,278,442

409,033

55,1185,869,408

39,025579－

39,604

20,442

2,462

19,162

6,317,467

579－

6,318,046

429,475

57,5805,888,571*3

63,709,723
538,993,788 29,360,649
2,710,085 509,633,138(4,008,462)*1 The increase during the fiscal period under review is mainly attributable to the acquisition of 10 residential properties and Shinjuku
Hirose Building.
*2 The decrease during the fiscal period under review is mainly attributable to the disposition of Garden City Shinagawa Gotenyama,
Hommachi Garden City(Office building portion), and disposition and impairment losses of Gotenyama SH Building.
*3 In the parentheness of “Amount of decrease during period” are written the number of impairment losses.
Total

560,621,867 42,081,644

4. Schedule of other specified assets
Real estate trust beneficiary interests are included above in “3. Schedule of property, plant andequipment and intangible assets”.

76

5. Schedule of investment corporation bonds

Name

Issue date

SHI
Fourth Series Unsecured February 28,
Investment Corporation
2014
Bond
SHI
Fifth Series Unsecured August 29,
Investment Corporation
2014
Bond
SHR
First Series Unsecured September 8,
Investment Corporation
2016
Bond
SHR
Third Series Unsecured July 11,
Investment Corporation
2019
Bond (Green Bonds)
SHR
Fourth Series Unsecured July 11,
Investment Corporation
2019
Bond (Green Bonds)
SHR
Fifth Series Unsecured November 1,
Investment Corporation
2019
Bond (Green Bonds)
SHR
Sixth Series Unsecured February 28,
Investment Corporation
2020
Bond (Green Bonds)
SHR
Seventh Series
September 9,
Unsecured Investment
2020
Corporation Bond
(Green Bonds)
SHR
Eighth Series Unsecured September 9,
Investment Corporation
2020
Bond (Green Bonds)
SHR
Ninth Series Unsecured May 19,
Investment Corporation
2021
Bond (Green Bonds)
Total

－

Balance at
Amount ofBalance
beginning of
Coupondecrease during at end of period
Redemption Use of
periodrate
Security
period(Thousanddateproceeds(Thousand(%)(Thousand yen )
yen )
yen )
3,000,000

3,000,000

－

1.069

February 28,2024

3,000,000－

3,000,000

0.871

August30,2024(Note1)2,000,000－

2,000,000

0.340

September 8,2026

4,000,000－

4,000,000

0.220

July 11,2024(Note1)2,500,000－

2,500,000

0.570

July 11,2029

5,000,000－

5,000,000

0.220

November 1,
2024(Note1)2,000,000－

2,000,000

0.500

February 28,2030

4,000,000－

4,000,000

0.250

September 9,2025

4,000,000－

4,000,000

0.510

September 9,2030

2,000,000－

2,000,000

0.460

May 19,2031

31,500,000

3,000,000

28,500,000－－(Note 2) Unsecured－－(Note 1) As of the end of the fiscal period under review, these bonds are recorded as “Current portion of investment corporation
bonds” in “Current liabilities” on the balance sheet.
(Note 2) The funds are used to repay borrowings or redemption of existing investment corporation bonds, etc.
(Note 3) These investment corporation bonds are equipped with pari passu clause among specified investment corporation bonds.
(Note 4) The following is the maturity schedule of investment corporation bonds within five years of the balance sheet date.

(Thousand yen)Due in1 year or less
Investment Corporation Bonds

12,000,000

1 to 2 years
4,000,000

77

2 to 3 years
2,000,000

3 to 4 years

4 to 5 years－－

6. Schedule of loans payable(Thousand yen)
Category

LenderpayableAmount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodMUFG Bank, Ltd.

922,000――

922,000

Mizuho Bank, Ltd.

735,000――

735,000

675,000――

675,000

383,000――

383,000

285,000――

285,000

MUFG Bank, Ltd.

―1,500,000―

1,500,000

MUFG Bank, Ltd.

―

260,000―

260,000

Mizuho Bank, Ltd.

―

210,000―

210,000

Sumitomo Mitsui Banking
Corporation―

190,000―

190,000

MUFG Bank, Ltd.

4,600,000――

4,600,000

Mizuho Bank, Ltd.

700,000――

700,000

3,700,000――

3,700,000

700,000――

700,000

Development Bank of Japan Inc.

300,000――

300,000

MUFG Bank, Ltd.

750,000―

750,000―

MUFG Bank, Ltd.

500,000―

500,000―

Mizuho Bank, Ltd.

400,000―

400,000―

700,000―

700,000―

350,000―

350,000―

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Short-term Limited
loans

Balanceat beginningof period

Mizuho Trust & Banking Co., Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedSumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited

―300,000―

Resona Bank, Limited

100,000―

100,000―

MUFG Bank, Ltd.

700,000―

700,000―

Long-term Mizuho Bank, Ltd.

1,100,000―

1,100,000―

1,100,000―

1,100,000―

450,000―

450,000―

Mizuho Trust & Banking Co., Ltd.

500,000―

500,000―

Resona Bank, Limited

300,000―

300,000―

The Norinchukin Bank

300,000―

300,000―

Aozora Bank, Ltd.

200,000―

200,000―

The Yamaguchi Bank, Ltd.

100,000―

100,000―

MUFG Bank, Ltd.

450,000―

450,000―

Development Bank of Japan Inc.

600,000―

600,000―

THE BANK OF FUKUOKA, LTD.

200,000―

200,000―

Shinkin Central Bank

100,000―

100,000―

The Senshu Ikeda Bank, Ltd.

100,000―

100,000―

The Shizuoka Bank, Ltd.

100,000―

100,000―

The 77 Bank, Ltd.

100,000―

100,000―

The Hiroshima Bank, Ltd.

100,000―

100,000―

payable0.25107

May 31,2024

0.29446

Feb 28,2025

0.29561

Feb 28,2025

Repayment
methodUse ofproceeds

Security

Nov 30,2024
1.47450

1.00850

Nov 30,2023

1.01850

Nov 30,2023

Lumpsum
Un-secured
payment at(Note2)
Un-guaranteed

300,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedRepayment due date

(Note3)

Mizuho Trust & Banking Co., Ltd.

loans

Averageinterest
rate(%)(Note 1)78

maturity

0.63800

Feb 29,2024

0.50500

Feb 29,2024

Category

LenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodAverageinterest
rate(%)(Note 1)

Balanceat end ofperiodRepayment due date

Repayment
method200,000――

200,000

200,000――

200,000

400,000――

400,000

Mizuho Trust & Banking Co., Ltd.

500,000――

500,000

Resona Bank, Limited

300,000――

300,000

The Norinchukin Bank

300,000――

300,000

MUFG Bank, Ltd.

600,000――

600,000

MUFG Bank, Ltd.

1,000,000――

1,000,000

Mizuho Bank, Ltd.

800,000――

800,000

Sumitomo Mitsui Banking
Corporation

800,000――

800,000

Development Bank of Japan Inc.

400,000――

400,000

MUFG Bank, Ltd.

1,810,000――

1,810,000

MUFG Bank, Ltd.

440,000――

440,000

Mizuho Bank, Ltd.

900,000――

900,000

MUFG Bank, Ltd.

600,000――

600,000

Mizuho Bank, Ltd.

200,000――

200,000

Sumitomo Mitsui Trust Bank,
Limited

300,000――

300,000

Mizuho Trust & Banking Co., Ltd.

600,000――

600,000

Resona Bank, Limited

400,000――

400,000

Long-term Shinkin Central Bank

300,000――

300,000

Lumpsum
payment at

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedUse ofproceeds

Security

0.49500 Aug 30,2024(Note3)

0.57000

Aug 29,2025

0.59750

Aug 29,2025

0.60500

Sep 8,2026

0.67000

Sep 8,2026

Feb 28,2025
0.61000(Note3)

Feb 28,2025
0.67000(Note3)

Un-securedloans
payableMUFG Bank, Ltd.

1,500,000――

1,500,000

MUFG Bank, Ltd.

800,000――

800,000

Mizuho Bank, Ltd.

700,000――

700,000

Development Bank of Japan Inc.

1,200,000――

1,200,000

THE BANK OF FUKUOKA, LTD.

500,000――

500,000

Aozora Bank, Ltd.

300,000――

300,000

The Yamaguchi Bank, Ltd.

500,000――

500,000

MUFG Bank, Ltd.

990,000―

990,000―

MUFG Bank, Ltd.

260,000―

260,000―

Mizuho Bank, Ltd.

550,000―

550,000―

Mizuho Trust & Banking Co., Ltd.

220,000―

220,000―

Development Bank of Japan Inc.

220,000―

220,000―

176,000――

176,000

2,352,000――

2,352,000

MUFG Bank, Ltd.

500,000――

500,000

MUFG Bank, Ltd.

500,000――

500,000

Mizuho Bank, Ltd.

100,000――

100,000

The 77 Bank, Ltd.

500,000――

500,000

The Hiroshima Bank, Ltd.

500,000――

500,000

MUFG Bank, Ltd.

1,900,000――

1,900,000

Mizuho Bank, Ltd.

4,200,000――

4,200,000

Sumitomo Mitsui Banking
Corporation

1,900,000――

1,900,000

Mizuho Bank, Ltd.
The Norinchukin Bank79

0.72500

Feb 27,2026

Un-guaranteedmaturity

0.77880

Feb 27,2026

0.37000

Nov 30,2023

0.45254

Nov 30,2023

0.61380

Aug 29,2025

0.56500

Feb 27,2026

0.63500

Feb 27,2026

0.70000

Aug 31,2027

0.78300

Aug 31,2027(Note2)Category

LenderDevelopment Bank of Japan Inc.

Balanceat beginningof period

376,000

Amount ofAmount ofincrease during decrease during
periodperiod――Balanceat end ofperiodAverageinterest
rate(%)(Note 1)

Repayment due date

Repayment
methodUse ofproceeds

Security

Aug 30,2024
376,000

0.28568(Note3)
Aug 30,2024

MUFG Bank, Ltd.

300,000――

300,000

Mizuho Bank, Ltd.

2,459,000――

2,459,000

Sumitomo Mitsui Banking
Corporation

260,000――

260,000

Mizuho Trust & Banking Co., Ltd.

900,000――

900,000

Development Bank of Japan Inc.

565,000――

565,000

0.48000

Feb 26,2027

MUFG Bank, Ltd.

450,000――

450,000

0.56500

Feb 26,2027

Mizuho Bank, Ltd.

1,332,000――

1,332,000

390,000――

390,000

0.57500

Feb 26,2027

Mizuho Trust & Banking Co., Ltd.

1,350,000――

1,350,000

MUFG Bank, Ltd.

1,000,000――

1,000,000

Mizuho Bank, Ltd.

800,000――

800,000

700,000――

700,000

400,000――

400,000

0.34900(Note3)

Sumitomo Mitsui Banking
Corporation

Aug 30,2024
0.35900(Note3)

Aug 30,2024
0.39580(Note3)

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedAug 30,2024
0.40580(Note3)

Mizuho Trust & Banking Co., Ltd.

400,000――

400,000

Resona Bank, Limited

200,000――

200,000

The Norinchukin Bank

200,000――

200,000

Shinkin Central Bank

200,000――

200,000

0.41388

Aug 31,2026

1,000,000――

1,000,000

0.55600

Aug 31,2026

800,000――

800,000

700,000――

700,000

200,000――

200,000

Mizuho Trust & Banking Co., Ltd.

400,000――

400,000

Resona Bank, Limited

200,000――

200,000

Long-term MUFG Bank, Ltd.

Lumpsum
Un-securedloans
payableMizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited

500,000――

500,000

1,400,000――

1,400,000

Mizuho Bank, Ltd.

2,400,000――

2,400,000

1,000,000――

1,000,000

200,000――

200,000

Mizuho Trust & Banking Co., Ltd.

400,000――

400,000

Resona Bank, Limited

300,000――

300,000

THE BANK OF FUKUOKA, LTD.

300,000――

300,000

The Senshu Ikeda Bank, Ltd.

200,000――

200,000

The 77 Bank, Ltd.

200,000――

200,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited

200,000――

200,000

1,500,000――

1,500,000

1,230,000――

1,230,000

200,000――

200,000

Mizuho Trust & Banking Co., Ltd.

600,000――

600,000

Resona Bank, Limited

800,000――

800,000

The Yamaguchi Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited80(Note2)
Un-guaranteedmaturity

MUFG Bank, Ltd.

The Norinchukin Bank

payment at

0.56600

Aug 31,2026

0.68500

Feb 29,2028

0.69500

Feb 29,2028

0.42000

Feb 27,2026

CategoryFeb 27,2026

900,000――

900,000

THE BANK OF FUKUOKA, LTD.

400,000――

400,000

Shinkin Central Bank

300,000――

300,000

The 77 Bank, Ltd.

300,000――

300,000

The Yamaguchi Bank, Ltd.

300,000――

300,000

MUFG Bank, Ltd.

1,000,000――

1,000,000

0.41000

Feb 27,2026

MUFG Bank, Ltd.

1,170,000――

1,170,000

0.46000

Feb 28,2029

Development Bank of Japan Inc.

900,000――

900,000
0.44000

Feb 28,2029

The Senshu Ikeda Bank, Ltd.

300,000――

300,000

MUFG Bank, Ltd.

1,200,000―

1,200,000―

Mizuho Bank, Ltd.

200,000―

200,000――

Nov 30,2023

800,000―

0.27300

800,000
1,800,000―

1,800,000―

MUFG Bank, Ltd.

1,400,000――

1,400,000

Mizuho Bank, Ltd.

300,000――

300,000
0.44100

May 29,2026

1,000,000――

1,000,000

0.59900

May 31,2028

800,000――

800,000

MUFG Bank, Ltd.

1,700,000――

1,700,000

Mizuho Bank, Ltd.

1,300,000――

1,300,000

1,200,000――

1,200,000

600,000――

600,000

The Norinchukin Bank

Sumitomo Mitsui Banking
Long-term Corporation
loans

0.42000

The Norinchukin Bank

Sumitomo Mitsui Banking
Corporation

Balanceat end ofperiodRepayment due dateLenderSumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedAmount ofAmount ofincrease during decrease during
periodperiodAverageinterest
rate(%)(Note 1)

Balanceat beginningof period

Mizuho Trust & Banking Co., Ltd.

Repayment
methodUse ofproceeds

Security

Lumpsum
Un-secured
payment at(Note2)
Un-guaranteedpayableResona Bank, Limited

900,000――

900,000

Development Bank of Japan Inc.

800,000――

800,000

Mizuho Bank, Ltd.

605,000――

605,000

Sumitomo Mitsui Banking
Corporation

800,000――

800,000

MUFG Bank, Ltd.

2,500,000――

2,500,000

Mizuho Bank, Ltd.

400,000――

400,000

Sumitomo Mitsui Banking
Corporation

545,000――

545,000

Mizuho Trust & Banking Co., Ltd.

500,000――

500,000

500,000――

500,000

MUFG Bank, Ltd.

1,542,000――

1,542,000

Mizuho Bank, Ltd.

300,000――

300,000

500,000――

500,000

2,500,000――

2,500,000

Resona Bank, Limited

500,000――

500,000

THE BANK OF FUKUOKA, LTD.

200,000――

200,000

MUFG Bank, Ltd.

400,000――

400,000

Mizuho Bank, Ltd.

990,000――

990,000

1,840,000――

1,840,000

600,000――

600,000

Resona Bank, Limited

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limitedmaturity
0.50000

May 31,2028

0.29150

Aug 29,2025

0.28000

Aug 29,2025

0.49500

Aug 31,2028

0.47500

Aug 31,2028

Feb 28,2025
0.29700(Note3)

Feb 28,2025
0.28700(Note3)

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited81

0.46600

Aug 31,2027

Category

LenderBalanceat end ofperiod700,000――

700,000

Resona Bank, Limited

500,000――

500,000

The Norinchukin Bank

400,000――

400,000

Shinkin Central Bank

200,000――

200,000

The Senshu Ikeda Bank, Ltd.

200,000――

200,000

The 77 Bank, Ltd.

400,000――

400,000

The Yamaguchi Bank, Ltd.

200,000――

200,000

Averageinterest
rate(%)(Note 1)

Repayment due date

0.46600

Aug 31,2027

1,370,000――

1,370,000

0.45000

Aug 31,2027

Development Bank of Japan Inc.

400,000――

400,000

0.36000

Aug 31,2027

MUFG Bank, Ltd.

300,000――

300,000

Mizuho Bank, Ltd.

100,000――

100,000――

0.28600

May 30,2025

800,000

800,000

1,380,000――

1,380,000

MUFG Bank, Ltd.

800,000――

800,000

Mizuho Bank, Ltd.

210,000――

210,000

1,800,000――

1,800,000

300,000――

300,000

0.50700

Nov 30,2028

870,000――

870,000

Resona Bank, Limited

1,100,000――

1,100,000

The Norinchukin Bank

1,020,000――

1,020,000

370,000――

370,000

0.43500

Nov 30,2028

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedSumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co., Ltd.

loans

Amount ofAmount ofincrease during decrease during
periodperiodMizuho Trust & Banking Co., Ltd.

MUFG Bank, Ltd.

Long-term

Balanceat beginningof period

Development Bank of Japan Inc.

Repayment
methodUse ofproceeds

Security

Lumpsum
Un-secured
payment at(Note2)
Un-guaranteedpayableMUFG Bank, Ltd.

200,000――

200,000

Mizuho Bank, Ltd.

600,000――

600,000

500,000――

500,000

500,000――

500,000

500,000――

500,000

Shinkin Central Bank

1,000,000――

1,000,000

The 77 Bank, Ltd.

500,000――

500,000

1,000,000――

1,000,000

MUFG Bank, Ltd.

300,000――

300,000

Mizuho Bank, Ltd.

700,000――

700,000

Sumitomo Mitsui Banking
Corporation

600,000――

600,000

Mizuho Trust & Banking Co., Ltd.

500,000――

500,000

Resona Bank, Limited

500,000――

500,000

The Norinchukin Bank

500,000――

500,000

The Senshu Ikeda Bank, Ltd.

1,000,000――

1,000,000

The Yamaguchi Bank, Ltd.

500,000――

500,000

The Hiroshima Bank, Ltd.

500,000――

500,000

1,280,000――

1,280,000

1,030,000――

1,030,000

500,000――

500,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited
THE BANK OF FUKUOKA, LTD.

The Shizuoka Bank, Ltd.

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited0.28400

Aug 29,2025

0.29400

Aug 29,2025

0.55850

Feb 28,2029

0.56850

Feb 28,2029

Aug 30,2024
0.27036(Note3)82

maturityCategory

LenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiod2,650,000――

2,650,000

2,110,000――

2,110,000

480,000――

480,000

Mizuho Trust & Banking Co., Ltd.

200,000――

200,000

Resona Bank, Limited

300,000――

300,000

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited

210,000――

210,000

MUFG Bank, Ltd.

1,060,000――

1,060,000

Mizuho Bank, Ltd.

340,000――

340,000

760,000――

760,000

1,500,000――

1,500,000

1,400,000――

1,400,000

Development Bank of Japan Inc.

800,000――

800,000

The Norinchukin Bank

700,000――

700,000

MUFG Bank, Ltd.

2,490,000――

2,490,000

Mizuho Bank, Ltd.

790,000――

790,000

1,760,000――

1,760,000

500,000――

500,000

Mizuho Trust & Banking Co., Ltd.

900,000――

900,000

MUFG Bank, Ltd.

480,000――

480,000

Mizuho Bank, Ltd.

360,000――

360,000

The Norinchukin Bank

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedResona Bank, Limited

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedLong-term

Averageinterest
rate(%)(Note 1)

Repayment due date

0.47500

Aug 31,2029

0.46000

May 31,2028

0.60200

Nov 29,2030

Resona Bank, Limited

390,000――

900,000――

900,000

750,000――

750,000

500,000――

500,000

1,120,000――

1,120,000

Mizuho Bank, Ltd.

840,000――

840,000

910,000――

910,000

1,000,000――

1,000,000

Mizuho Trust & Banking Co., Ltd.

980,000――

980,000

Resona Bank, Limited

800,000――

800,000

The Norinchukin Bank

800,000――

800,000

1,100,000――

1,100,000

Mizuho Bank, Ltd.

400,000――

400,000

Mizuho Trust & Banking Co., Ltd.

300,000――

300,000

Resona Bank, Limited

300,000――

300,000

The Norinchukin Bank

400,000――

400,000

THE BANK OF FUKUOKA, LTD.

300,000――

300,000

Shinkin Central Bank

300,000――

300,000

The 77 Bank, Ltd.

300,000――

300,000

The Yamaguchi Bank, Ltd.

400,000――

400,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedSumitomo Mitsui Trust Bank,
Limited83(Note2)
Un-guaranteed

390,000

MUFG Bank, Ltd.

THE BANK OF FUKUOKA, LTD.

Security

Un-secured
payment at

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedUse ofproceeds

Lumpsumloans
payableRepayment
methodmaturity
0.52200

Feb 29,2028

0.66500

Feb 28,2030

0.66500

May 31,2029

Category

LenderAmount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodThe Shizuoka Bank, Ltd.

300,000――

300,000

The Hiroshima Bank, Ltd.

300,000――

300,000

Aozora Bank, Ltd.

300,000――

300,000

Averageinterest
rate(%)(Note 1)

Repayment due date

0.66500

May 31,2029

Repayment
method1,000,000――

1,000,000

The Joyo Bank, Ltd

300,000――

300,000

MUFG Bank, Ltd.

1,160,000――

1,160,000

Mizuho Bank, Ltd.

960,000――

960,000

880,000――

880,000

550,000――

550,000

Mizuho Trust & Banking Co., Ltd.

350,000――

350,000

Resona Bank, Limited

500,000――

500,000

The Norinchukin Bank

400,000――

400,000

MUFG Bank, Ltd.

1,400,000――

1,400,000

Mizuho Bank, Ltd.

1,050,000――

1,050,000

600,000――

600,000

500,000――

500,000

Mizuho Trust & Banking Co., Ltd.

300,000――

300,000

Resona Bank, Limited

450,000――

450,000

Development Bank of Japan Inc.

550,000――

550,000

350,000――

350,000

Lumpsum

700,000――

700,000

payment at

Nippon Life Insurance Company

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedSumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedLong-term The Norinchukin Bank
loans

Balanceat beginningof period

MUFG Bank, Ltd.

Use ofproceeds

SecurityJul 11,2024
0.27107(Note3)0.55000

Feb 26,2027

0.85500

Feb 28,2030

Un-secured(Note2)
Un-guaranteedpayable350,000――

350,000

650,000――

650,000

350,000――

350,000

Resona Bank, Limited

300,000――

300,000

Development Bank of Japan Inc.

650,000――

650,000

Mizuho Bank, Ltd.

200,000――

200,000

400,000――

400,000

200,000――

200,000

Mizuho Trust & Banking Co., Ltd.

200,000――

200,000

Resona Bank, Limited

200,000――

200,000

The Shizuoka Bank, Ltd.

200,000――

200,000

The Hiroshima Bank, Ltd.

200,000――

200,000

Aozora Bank, Ltd.

200,000――

200,000

The Joyo Bank, Ltd

200,000――

200,000

MUFG Bank, Ltd.

500,000――

500,000

Mizuho Bank, Ltd.

500,000――

500,000

The Norinchukin Bank

500,000――

500,000

Shinkin Central Bank

600,000――

600,000

The 77 Bank, Ltd.

500,000――

500,000

The Yamaguchi Bank, Ltd.

500,000――

500,000

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedSumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited84

maturity

1.00500

Nov 29,2030

0.85500

Feb 29,2028

0.85500

Feb 29,2028

1.21000

Feb 28,2031

Category

LenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodAverageinterest
rate(%)(Note 1)

Repayment due date

1.21000

Feb 28,2031

1.11000

Feb 28,2031

1.21000

Feb 28,2031

0.27036

Feb 26,2027

1.10500

Feb 28,2030

Repayment
method500,000――

500,000

500,000――

500,000

300,000――

300,000

THE BANK OF FUKUOKA, LTD.

500,000――

500,000

THE JUHACHI-SHINWA BANK,
LTD.

500,000――

500,000

MUFG Bank, Ltd.

300,000――

300,000

MUFG Bank, Ltd.

600,000――

600,000

Mizuho Bank, Ltd.

500,000――

500,000

600,000――

600,000

300,000――

300,000

Mizuho Trust & Banking Co., Ltd.

400,000――

400,000

Resona Bank, Limited

500,000――

500,000

The Shizuoka Bank, Ltd.

200,000――

200,000

Mizuho Bank, Ltd.

500,000――

500,000

Mizuho Trust & Banking Co., Ltd.

400,000――

400,000

The Norinchukin Bank

500,000――

500,000

Development Bank of Japan Inc.

1,000,000――

1,000,000

THE BANK OF FUKUOKA, LTD.

700,000――

700,000

Shinkin Central Bank

200,000――

200,000

200,000――

200,000

Lumpsum

The Yamaguchi Bank, Ltd.

200,000――

200,000

payment at

The Senshu Ikeda Bank, Ltd.

200,000――

200,000

The Hiroshima Bank, Ltd.

200,000――

200,000

Aozora Bank, Ltd.

200,000――

200,000

MUFG Bank, Ltd.

700,000――

700,000

1.10500

Feb 28,2030

Nippon Life Insurance Company

2,000,000――

2,000,000

1.04000

Jan 30,2032

Nippon Life Insurance Company

2,000,000――

2,000,000

1.12000

Nov 30,2032

570,000――

570,000

1,240,000――

1,240,000

0.87500

May 31,2030

Nippon Life Insurance Company
THE NISHI-NIPPON CITY BANK,LTD.
Sumitomo Mitsui Banking
Corporation

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedLong-term The 77 Bank, Ltd.

Use ofproceeds

Security

Un-securedloans
payableMizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank,
LimitedUn-guaranteedmaturity

470,000――

470,000

Resona Bank, Limited

1,150,000――

1,150,000

The Norinchukin Bank

850,000――

850,000

Development Bank of Japan Inc.

550,000――

550,000

Sumitomo Mitsui Banking
Corporation

200,000――

200,000

0.82500

May 31,2030

MUFG Bank, Ltd.

0.87500

May 31,2030

0.27107

Aug 31,2027

Mizuho Trust & Banking Co., Ltd.

670,000――

670,000

Sumitomo Mitsui Banking
Corporation

1,200,000――

1,200,000

Mizuho Bank, Ltd.

1,410,000――

1,410,000

Sumitomo Mitsui Trust Bank,
Limited1,300,000――

1,300,000

Mizuho Trust & Banking Co., Ltd.

600,000――

600,000

Resona Bank, Limited

700,000――

700,000

Shinkin Central Bank

200,000――

200,000

85(Note2)Category

LenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiod550,000――

550,000

Mizuho Trust & Banking Co., Ltd.

1,000,000――

1,000,000

Development Bank of Japan Inc.

Mizuho Bank, Ltd.

2,100,000――

2,100,000

Sumitomo Mitsui Banking
Corporation

450,000――

450,000

THE BANK OF FUKUOKA, LTD.

400,000――

400,000

Shinkin Central Bank

300,000――

300,000

The Yamaguchi Bank, Ltd.

Averageinterest
rate(%)(Note 1)

Repayment due date

1.03500

Aug 30,2030

0.98500

Aug 30,2030

1.12000

Aug 29,2031

0.27595

Nov 28,2025

0.27595

Nov 30,2027

Repayment
method300,000――

300,000

MUFG Bank, Ltd.

―

990,000―

990,000

Mizuho Bank, Ltd.

―

810,000―

810,000―

740,000―

740,000―

440,000―

440,000

Mizuho Trust & Banking Co., Ltd.

―

320,000―

320,000

MUFG Bank, Ltd.

―

900,000―

900,000

Mizuho Bank, Ltd.

―110,000―

110,000―

250,000―

250,000―

1,140,000―

1,140,000

Mizuho Trust & Banking Co., Ltd.

―

100,000―

100,000

Resona Bank, Limited―

100,000―

100,000

Long-term Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank,
loans
LimitedpayableMizuho Trust & Banking Co., Ltd.

―

230,000―

230,000

Lumpsum
payment at

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedSumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedSecurity

Un-secured―

570,000―

570,000―

100,000―

100,000

Development Bank of Japan Inc.

―

220,000―

220,000

Sumitomo Mitsui Banking
Corporation―

510,000―

MUFG Bank, Ltd.

―

1,810,000

The Norinchukin Bank―

Shinkin Central Bank―The Yamaguchi Bank, Ltd.

1.19500

Nov 29,2030

510,000

1.14500

Nov 29,2030―

1,810,000

1.19500

Nov 29,2030

400,000―

400,000

400,000―

400,000――

1.25500

Aug 31,2032

400,000

400,000―

300,000―

300,000―

450,000―

450,000

Resona Bank, Limited―

300,000―

300,000

1.11500

Feb 28,2031

The Norinchukin Bank―

300,000―

300,000

Sumitomo Mitsui Banking
Corporation―

910,000―

910,000

1.06500

Feb 28,2031

Mizuho Bank, Ltd.

―

890,000―

890,000

Mizuho Trust & Banking Co., Ltd.

―

500,000―

500,000

Development Bank of Japan Inc.

―

600,000―

600,000

THE BANK OF FUKUOKA, LTD.

―

200,000―

200,000

1.18000

Aug 29,2031

Shinkin Central Bank―

100,000―

100,000

The Yamaguchi Bank, Ltd.

―

100,000―

100,000

The 77 Bank, Ltd.

―

100,000―

100,000

THE NISHI-NIPPON CITY BANK,LTD.
Sumitomo Mitsui Trust Bank,
LimitedUse ofproceeds

86(Note2)
Un-guaranteedmaturityCategory

Balanceat beginningof period

LenderThe Senshu Ikeda Bank, Ltd.
Long-term The Shizuoka Bank, Ltd.
loans

The Hiroshima Bank, Ltd.

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiod―100,000―

100,000―

100,000―

100,000―

100,000―

100,000

Averageinterest
rate(%)(Note 1)

Repayment due date

Repayment
method1.18000

Aug 29,2031

payment at

Use ofproceeds

Security

Lumpsum
Un-secured(Note2)
Un-guaranteedpayableAozora Bank, Ltd.

―

200,000―

200,000

MUFG Bank, Ltd.

―

890,000―

890,000

225,742,000

18,840,000

15,840,000

228,742,000

Total

maturity(Note 1) Average interest rate is the weighted average interest rate during the period. Interest rates are rounded to six decimal
places. The interest rates for loans hedged by interest rate swap transactions used to hedge the risk of interest rate fluctuations are theinterest rates reflecting the effect of the interest rate swaps.
(Note 2) Use of proceeds are purchase of assets and related expenses and repayment of loans payable.
(Note 3) As of the end of the fiscal period under review, these loans are recorded as “Current portion of long-term loans payable”
in “Current liabilities” on the balance sheet.
(Note 4) The following is the maturity schedule of long-term loans within five years of the balance sheet date.
(Thousand yen)
Long-term loans
payableDue in 1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

32,505,000

35,843,000

19,637,000

36,290,000

30,487,000

87

88

89

90