Sekisui House SI Asset Management, LTD.

Sekisui House SI Investment Corporation
Business Results for the 16th Fiscal Period
November 15, 2013

Sekisui House SI Investment Corporation
Business Results for the 16th Fiscal Period from Apr. 1, 2013 to Sep. 30, 2013

8973

Contents
Ⅰ. Overview of the 16th Fiscal Period Ended September 30, 2013

Ⅵ. Forecasts for the 17th Fiscal Period Ending March 31, 2014

and Current Management Policy

・Executive Summary

4・Forecasts for the 17th Fiscal Period Ending March 31, 201429

・Summary of Business Results for 16th Fiscal Period

6・Current Management Policy

30・Occupancy Rate and NOI Yields

7

Ⅱ. Replacement of Assets Under Management

Ⅶ. Appendix
・Balance Sheets

33

・Replacement of Assets Under Management with Powerful Sponsor
Support10

・Statements of Income

35・Description of Assigned Assets

11

・Statements of Cash Flows / Cash Distributions

36

・Description of Acquired Assets

12・Summary of Selected Financial Data

37

・Changes in Asset Size, etc. since the Transition to Phase II of the
Growth Strategy

14・History of the Investment Corporation since Listing38

・Portfolio Summary

15・Portfolio Development Policy

39

・Portfolio Map

40

Ⅲ. Report on the 16th Fiscal Period Public Offering・Overview of the 16th Fiscal Period Public Offering

17

・Status of Portfolio

42・Overview of Assets Acquired at the 16th Fiscal Period Public
Offering

18・ List of Properties Owned at End of Period

44・ List of Period-End Estimated Values

48

Ⅳ. Portfolio Management Status of the 16th Fiscal Period Ended

September 30, 2013
・Residential Properties Occupancy Status by Investment Area

20

・Overview of Interest-Bearing Debt

52

・Residential Properties Rent Status

21

・Overview of Unitholders as of September 30, 2013

55

・Trends in Occupancy and Tenants of Retail Facilities

22

・Overview of Asset Management Company

56

・Changes in Unrealized Gain / Loss, Etc.

23

・Historical Investment Unit Price

57

Ⅴ. Financing Activities of the 16th Fiscal Period Ended

September 30, 2013
・Overview of Financing Activities

25
2

Primer Maison WASEDA

Ⅰ. Overview of the 16th Fiscal Period Ended September 30, 2013

プライムメゾン東桜
マスト博多
マスト博多

Executive Summary (1)Actual cash distribution
in 16th period¥10,537(Up ¥78 (up 0.7%) period-on-period)

Asset size

¥147,672 million(as of the date of this document)

Occupancy rate
(entire portfolio)

97.1%(At the end of September 2013(end of 16th fiscal period))

Credit rating status
JCR

AA-

(Stable)R&I

A+(Stable)■ Conducted replacement of assets under management with the powerful sponsor support, giving
consideration to cash distribution
 Assigned Hamamatsu Plaza East Ito-Yokado Building Portion to Sekisui House, with intent to avert thepotentially generated risk of decrease in profitability Acquired 4 rental housing properties of the “Prime Maison” series that has been planned, developed andoperated by Sekisui House, in order to complement the decrease in earnings caused by the assignment■ Implemented a timely public offering in line with the market’s upward trend The issue price was set to surpass NAV per unit, realizing transition to a public offering with premium Used the funds procured through the public offering to acquire 12 high-quality rental housing properties forwhich the Investment Corporation’s preferential negotiation rights had been secured■ Maintained stable occupancy through flexible leasing Rents of residential properties remained stable despite some rent adjustments
 Residential properties turned to unrealized gain at the end of the 16th Fiscal Period■ Promoted maintenance and enhancement of stable financial base Worked to lengthen borrowing periods on the occasion of refinancing along with a reduction in the interest
rate spreads
 Rating and Investment Information, Inc. (R&I) upgraded the issuer rating assigned to the Investment
Corporation to A+, recognizing the Investment Corporation’s asset management results to date4

Executive Summary (2)Forecast distribution for
the 17th fiscal period¥10,700(Up ¥163 (up 1.5%)
period-on-period)

Phase II of the Investment
Corporation’s growthstrategy in progress

Management Policy

Strategic Target

Increase profitability
through full-fledged
expansion of asset size

Aim for asset size of¥200 billion while giving
consideration to the
cash distribution level

Current Management Policy
Steadily implement each of the following strategies, with achievement of
the strategic target in about three years

External Growth
Strategy

Continuously acquire properties with diverse methods making the mostof our capacity to acquire properties

Internal Growth
Strategy

Conduct management with a focus on occupancy rates in coordination
with the Sekiwa Real Estate Group

Financial Strategy

Promote lengthening of borrowing periods while aiming to further
reduce the borrowing cost rate5

Summary of Business Results for 16th Fiscal Period
Comparison with Forecasts
Forecast for fiscal period ended
Sep. 30, 2013
(announced May 24, 2013)

Fiscal period ended Sep. 30,
2013 (183 days) (actual)¥4,679 million¥4,688 million

Operating revenue

Differences
between actual results and initial forecasts¥9 million

0.2%

Operating income¥2,183 million¥2,179 million-¥3 million-0.2%

Ordinary income¥1,682 million¥1,684 million¥1 million

0.1%

Net income¥1,680 million¥1,681 million¥1 million

0.1%¥10,526¥10,537¥11

0.1%◇Factors for differences between actual results and initial
forecasts for the fiscal period ended September 30, 2013

・ Operating income
Operating revenue
Decrease in rent revenue：-¥24 million

Increase in other lease business revenue：+¥33 million

Increase in expenses related to rent business：+¥5 million

Loss on sales of real estate properties：+¥8 million

Decrease in other business expenses：-¥0 million

Increase in non-operating revenue：+¥1 million

Decrease in non-operating expenses：-¥3 million

Operating expense

Cash distributions
per unit

・ Ordinary income

Comparison with Previous Fiscal Period◇Factors for period-on-period changes to actual results forthe fiscal period ended September 30, 2013

Fiscal period ended Mar. 31,
2013 (182 days) (actual)

Fiscal period ended Sep. 30,
2013 (183 days) (actual)

Operating revenue¥4,038 million¥4,688 million¥649 million

16.1%

Operating income¥1,908 million¥2,179 million¥271 million

14.2%

Ordinary income¥1,435 million¥1,684 million¥248 million

17.3%

Net income¥1,433 million¥1,681 million¥248 million

17.3%

Increase in other lease business revenue¥10,459¥10,537¥78

0.7%

Decrease in silent partnership distribution

Total assets¥133,843 million¥148,871 million¥15,027 million

Interest-bearing debt

¥71,434 million¥75,975 million¥4,541 million

Net assets¥59,188 million¥69,976 million¥10,787 million¥533,000¥508,000

Number of investment units
issued and outstanding

137,070 units

159,605 units

Period-end market value¥73,058 million¥81,079 million

Cash distributions¥1,433 million¥1,681 million

Change・ Operating income
Operating revenue
Increase in rent revenue

Cash distributions per unit：：：+¥627 million+¥23 million-¥1 million

Operating expense

Period-end investment unit price

Increase in expenses related to rent business： +¥320 million

Loss on sales of real estate properties：+¥8 million

Increase in other business expenses：+¥48 million

Decrease in non-operating revenue：-¥1 million

Increase in non-operating expenses：+¥21 million

・ Ordinary income

Notes: 1. Amounts less than the indicated unit are rounded down.
2. Percentage figures are rounded to the nearest first decimal place.

6Occupancy Rate and NOI Yields
Monthly Occupancy Rates at a Glance
Residential
100%

Retail

98.3％

97.3％

Total

97.7％

97.7％

97.1％

95%

90%

85%

80%

75%
Sep.
2011

Oct.

Nov.

End of 12th
Fiscal Period

Dec.

Jan.
2012

Feb.

Mar.

Apr.

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Feb.

Mar.

Apr.

May

Jun.

Jul.

End of 15th
Fiscal Period

End of 14th
Fiscal Period

End of 13th
Fiscal Period

Jan.
2013

Occupancy Rates

Aug.

Sep.

End of 16th
Fiscal Period

NOI Yields

Fiscal period ended September 30, 2013 (16th fiscal period)

Fiscal period ended September 30, 2013
(16th fiscal period)

As of end of the fiscal period

Average for the 16th fiscal period

Residential

96.1%

95.2%

5.1%

Retail

99.6%

99.7%

5.4%

Total

97.1%

96.6%

5.1%

(Apr. 1, 2013 through Sep. 30, 2013)

Notes:1. “Occupancy Rates” indicated in the above graph describe the rate of total leased space to the total leasable space for the properties in each category held by the Investment Corporation as of theend of each month from September 2011 to September 2013.
2. The average occupancy rate for the 16th fiscal period ended September 30, 2013 in the above table indicates the average of occupancy rates as of the end of each month during the fiscal period
ended September 2013.
3. The NOI yields in the above table are obtained by dividing the annualized leasing NOI for the fiscal period ended September 30, 2013 by the total acquisition price .
4. Percentage figures are rounded to the nearest first decimal place.

7

Memo

8

Prime Maison HATCHOBORI

Ⅱ. Replacement of Assets Under Management

プライムメゾン東桜
マスト博多
マスト博多

Replacement of Assets Under Management with Powerful Sponsor Support
Overview of Replacement of Assets Under Management
Assigned as of September 30, 2013
(16th fiscal period) (retail property)

Acquired as of October 1, 2013
(17th fiscal period) (residential properties for all)Assigned assets

All interests the Investment Corporation has
in Hamamatsu Plaza East Ito-Yokado
Building Portion

Acquired assets

AssigneeSekisui House

SellerPrice for assignment¥2,240 million

Acquisition price¥1,280 million¥1,160 million¥1,640 million¥2,120 million

Appraisal value (Note)¥2,062.9 million

Appraisal value (Note)¥1,360 million¥1,210 million¥1,670 million¥2,420 million

Average NOI yield(results)

6.9%(average for 14th through 16th fiscal periods)

Assumed NOI yield(target)Prime Maison
WASEDA

Prime Maison
HATCHOBORI

Prime Maison
GOTENYAMA
EAST

Prime Maison
JINBOCHO

Sekisui House

Around 5.0% - 5.2% in approximation(estimate by the Asset Management Company)(Note) The Appraisal value is that of September 1, 2013 as the date of appraisal for the assigned assets, and that of August 1, 2013 as the date of appraisal for the acquired assets, respectively.

Significance of the assignment

Significance of the acquisition Avert the risk of a significant decrease in profitability (including reduced
rents, cancellation of contracts and increase in repair costs) which
could be potentially generated by continuous ownership by theInvestment Corporation of Hamamatsu Plaza East Ito-Yokado Building Enhance the quality of the portfolio and reinforce the stability of profit
base by replacing the assets with high-quality residential properties<Characteristics of acquired assets><Weight of Ito-Yokado Building in the entire portfolio>
Ratio by leasable floor area
5.2% (before assignment)

Eliminate the risk of decreasing portfolio
profitability to a respectable degree

 Options for enhancing the attractiveness as a retail property expanded
as a result of Sekisui House taking charge of operating the entire ItoYokado Building Portion single-handedly【Gain/loss on assignment for the 16th
fiscal period ended September 2013】
Price for assignment
Book value
immediately before
assignment
Expenses for
assignment
Gain/loss on
assignment

15 million-¥8 million

All properties arelocated in Greater
Tokyo/Major Urban
Areas

Average property age
1.5 years(as of the date of thisdocument)【Lease status of major tenants for XEBIO Building and other portions of
HAMAMATSU PLAZA EAST】¥2,240 million¥2,232 million

All properties havebeen planned anddeveloped and areoperated by the
Sekisui House GroupXEBIO Building
Akachan Honpo
Building
HAMAPLA Frespo
Building

Tenant nameLease contract expiration
date

XEBIO Corporation

November 29, 2020

Akachan Honpo

November 29, 2020

Daiwa Lease Co., Ltd.

November 18, 2024

Average NOI yield(results) (Note)
4.2%(Average for 14th through16th fiscal periods)

Note: Including usage fees for common flat parking lots leased to Ito-Yokado Co., Ltd.

10

Description of Assigned Assets
Retail-01 HAMAMATSU PLAZA EAST, Ito-Yokado Building Portion
Major Regional Cities

13.0 years since completion(as of the date of this document)【 Ownership status of HAMAMATSU PLAZA】

Retail(as of the date of this document)
HAMAMATSU PLAZA EAST

HAMAMATSU PLAZA WEST
HAMAMATSU
PLAZA Sports
Building(ZEXIS)(land only)

Location
Closest station
Structure / Floors

Aza-doko, Kaminishicho, Higashi-ku,
Hamamatsu-shi, Shizuoka-ken
Approx. 4km from Hamamatsu Station on
the JR Tokaido Main Line, and other
S/4F

Completed

November 7, 2000

Tenant nameLease agreement
expiration date

Ito-Yokado Co., Ltd.

Multi-story
parking lot
HAMAPLA Frespo
Building (land only)

HAMAMATSU
PLAZA WEST
Building(completed
October 1979)

Ito-Yokado Building(completed
November 2000)

Administrative building(completed November 2000)
Akachan Honpo
Building(completed
November 2000)

XEBIO
Building(completed
November
2000)

51% quasi-co-ownershipinterest
Owned by Sekisui House
49% quasi-co-ownershipinterest
Owned by the Investment
Corporation

100％-owned by
Sekisui House

November 29, 2020

Procedures with regard to HAMAMATSU PLAZA to date
March 30, 2012 (13th fiscal period)

September 30, 2013 (16th fiscal period)

Assigned HAMAMATSU
PLAZA WEST and part of
HAMAMATSU PLAZA EAST,
respectively

Assigned the Investment
Corporation’s interest for
Hamamatsu Plaza East ItoYokado Building Portion<Investment ratio of
HAMAMATSU PLAZA><Investment ratio of
HAMAMATSU PLAZA>

as of the date of this document(17th fiscal period)
Owns no more than 49%
quasi-co-ownership interest
for XEBIO Building and otherportions of HAMAMATSU
PLAZA EAST

14.5%

6.4%

5.0%

2.7%

2.7%

(at end of
12th FP)(at end of
13th FP)(at end of
15th FP)(at end of
16th FP)(at end of
16th FP)

Established a collaborative structure with Sekisui House for the revitalizationof the entire property

2.6%

Implement medium-term to long-term
management strategy

Aim to increase
the value of the
portions theInvestment
Corporation
continues to own
under thecollaborative
structure with
Sekisui House

Note: The Investment ratio of HAMAMATSU PLAZA represents the ratio of HAMAMATSU PLAZA to the entire portfolio at each point of time, calculated based on the acquisition price and rounded
to the nearest first decimal place.

11

Description of Acquired Assets (1)Residence-87

Prime Maison WASEDA

Greater Tokyo / Major Urban
Areas

1.0 years sincecompletion

Residence-89
Single typeunits

Prime Maison JINBOCHO

Greater Tokyo / Major Urban
Areas

0.7 years sincecompletion

Single type
units

Properties developed in collaboration with
Sekisui House
Participation in the property planning and development
meetings of Sekisui House’s development department
in order to increase opportunities to acquire high-quality
residential properties
Demandinformation

Sekisui House
Development
Department

LocationTransportation
accessCompleted
Occupancy rate

Residence-88

Waseda Tsurumaki-cho, Shinjukuku, Tokyo
Approx. 8-minute walk fromWaseda Station on the Tokyo Metro
Tozai Line
November 8, 2012
92.4% (as of September 30, 2013)

Prime Maison HATCHOBORIGreater Tokyo / Major Urban
Areas

0.9 years sincecompletion

Single type
units

LocationTransportation
accessCompleted
Occupancy rate

Residence-90

Kandajinbo-cho, Chiyoda-ku, Tokyo
Approx. 4-minute walk from
Jinbocho Station on the Toei
Subway Shinjuku Line and other
March 1, 2013

Exchange of
opinionSekisui House SI
Asset
Management

Supplyinformation

Real Estate Investment
Management

Of the 4 properties acquired in the 17th fiscal
period, 3 properties were planned anddeveloped through the meetings
Materialization of initiatives
made to date

98.6% (as of September 30, 2013)

Prime Maison GOTENYAMA EAST

Greater Tokyo / Major Urban
Areas

2.8 years sincecompletion

Large type
units

Properties through large-scale urban
development by Sekisui House
High-end rental housing created through a large-scale
multi-use development by Sekisui House, located in
Shinagawa Gotenyama, Tokyo
Overview of large-scale multi-use development in
Shinagawa Gotenyama
Location

Kitashinagawa, Shinagawa-ku, Tokyo

Site area

Approx. 28,000m2(total area for 4 blocks)
Garden City Shinagawa Gotenyama

LocationTransportation
accessCompleted
Occupancy rate

Hatchobori, Chuo-ku, Tokyo
Approx. 1-minute walk from
Hatchobori Station on the Tokyo
Metro Hibiya Line and otherNovember 16, 2012
85.7% (as of September 30, 2013)

LocationTransportation
accessCompleted
Occupancy rate

Kitashinagawa, Shinagawa-ku,
Tokyo
Approx. 12-minute walk from
Shinagawa Station on the JR
Yamanote Line and other
January 18, 2011
100.0% (as of September 30, 2013)

Building
overview

Gotenyama SH Building
Prime Maison GOTENYAMA EAST
Prime Maison GOTENYAMA WEST

(Note) Except for Prime Maison GOTENYAMA EAST, theInvestment Corporation has no specific plan to acquire
the properties indicated in the Building overview as ofthe date of this document.

Note: The property age represents the age of respective properties calculated as of the date of this document and rounded down to the nearest first decimal place.

12Description of Acquired Assets (2)Overview of Appraisal Reports of Acquired Assets (Date of Appraisal: August 1, 2013)

Appraisal value (specified value)
Operating revenues(thousand yen)Prime Maison WASEDA

Prime Maison
HATCHOBORI

Prime Maison
JINBOCHO

Prime Maison
GOTENYAMA EAST

¥1,360,000¥1,210,000¥1,670,000¥2,420,000¥89,145¥75,777¥103,805¥161,417

Unit rental revenues, etc. (including common area fees)¥87,348¥75,455¥101,729¥159,641

Parking lot revenue¥1,488¥100¥540¥11,040

Other revenues¥4,249¥3,656¥4,642¥3,746

Vacancy loss, etc.

-¥3,940-¥3,434-¥3,106-¥13,010

Operating expenses¥20,676¥15,156¥20,914¥43,996

Maintenance and utility expenses¥7,260¥4,110¥5,536¥17,707

Repair expenses (including restoration expenses)¥1,136¥869¥1,379¥1,129PM fees and tenant solicitation expenses, etc.

¥6,245¥5,239¥7,332¥10,402

Taxes and public dues

¥4,934¥3,934¥5,895¥13,921

Other expenses¥1,101¥1,004¥772¥837¥68,469¥60,621¥82,891¥117,421

¥132

¥113

¥155

¥774

Net operating income (NOI)
Gain on management of income from lump-sum payment
Capital expenditure, etc.

-¥1,254

-¥860

-¥967

-¥3,125

Net income (NCF)¥67,347¥59,874¥82,079¥115,070

Capitalization rate

4.9%

4.9%

4.8%

4.6%

Value of earnings calculated by the direct capitalization
method¥1,370,000¥1,220,000¥1,710,000¥2,500,000

Value of earnings calculated by discounted cash flow (DFC)
method¥1,340,000¥1,190,000¥1,670,000¥2,420,000

4.7%

4.7%

4.5%

4.3%

Discount rate
Terminal capitalization rate
Cost method value
Land ratio

5.1%

5.1%

5.0%

4.8%

¥1,210,000¥967,000¥1,160,000¥3,770,000

43.7%

38.0%

50.0%

69.5%

56.3%

62.0%

50.0%

30.5%

Building ratio*Comparison with current unit rent
Average unit rent based on appraisal

14,577 yen/tsubo

15,037 yen/tsubo

15,398 yen/tsubo

17,500 yen/tsubo

Average unit rent based on lease agreements

14,411 yen/tsubo

15,118 yen/tsubo

15,132 yen/tsubo

16,615 yen/tsubo

Note 1: Amounts are rounded down to the nearest indicated unit.
Note 2: “Average unit rent based on appraisal” has been calculated based on the unit rental revenues by the direct capitalization method stated in the above appraisal. “Average unit rent based on lease agreements” hasbeen calculated based on the monthly rental revenue of respective acquired assets as of the end of September 2013.

13

Changes in Asset Size, etc. since the Transition to Phase II of the Growth Strategy
Implemented public offering in two consecutive fiscal periods and conducted replacement of assets under management with the powerfulsponsor support, further reinforcing the stability of the portfolio
Acquired residential properties totaling ¥53.7 billion since the transition to Phase II, realizing an increase in the investment ratio of
residences. Continued trend of decrease in the unrealized loss ratio
53.4%

LTV

Total acquisition price

52.1% (estimate)

52.1%

LTV

51.0%
51.5%
Announced in
September 2013
Replacement of assets
under management

March 2012
Assigned part of
HAMAMATSU Plaza,etc.

October 2012
Implementation of
public offering¥101.0 billion(60 properties)¥15.3 billion¥128.7 billion(77 properties)¥110.2 billion(66 properties)-¥2.6 billion(equivalent to theacquisition price)
Assetsacquired in the
16th FP :12 properties intotal including
Esty Maison

November 2011

Announced
the transition
to Phase II of
the “Growth
Strategy for a
New Stage”¥141.4 billion(89 properties)

HIGASHISHINJUKU¥6.2 billion¥147.6 billion(93 properties)

Assets acquiredin the 17th FP:
4 properties intotal including
Prime Maison
WASEDA

Assetsassigned in
the 16th FP:
Hamamatsu
Plaza East
Ito-Yokado
Building
PortionInvestment ratioof residences

Investment ratioof residences

Investment ratioof residences

Investment ratioof residences

Investment ratioof residences

80.0%

81.7%

84.3%

87.6%

88.1%

～
～

Asset size (total acquisition price)

April 2013
Implementation of
public offering

End of 13th FP End of 14th FP End of 15th FP(Mar. 31, 2012) (Sep. 30, 2012) (Mar. 31, 2013)
Unrealized gain
/loss ratio

Unrealized gain
/loss ratio

Unrealized gain
/loss ratio- 7.6%- 5.6%- 3.4%

May 2013

Sep. 2013

End of 16th FP(Sep. 30, 2013)

Oct. 2013

as of the dateof this document

Unrealized gain/loss ratio- 1.7%

Turned to unrealized
gain for residences

Note: The investment ratio of residences is calculated based on the acquisition price, rounded to the nearest first decimal place. The unrealized gain/loss ratio is calculated by dividing the period-end
unrealized gain or loss by the period-end book value for each fiscal period rounded to the nearest first decimal place.

14

Portfolio Summary
As of the end of the 16th Fiscal Period (September 2013)
Total acquisition price (Note 1)

Total number of properties

Number of leasable
residential units (Note 2)¥141,472 million

89 properties

5,640 units(as of the date of this document (Note 6):¥147,672 million)(as of the date of this document (Note 6):
93 properties)(as of the date of this document (Note 6):
5,830 units)

Occupancy rate

Portfolio PML (Note 3)

Average property age(residential only) (Note 4)

97.1%

5.0%

Diversification status by asset class(Note 5)Residential

End of March 2012(end of 13th FP)

80.0%

7.1 years(as of the date of this document (Note 6):
6.9 years)

Diversification status by region(residential only) (Note 5)

Diversification status by property age(residential only) (Note 5)Less than 5 years
5 ye ars to less th an 10 yea rs
10 years o r more

Gre ate r Tokyo / Majo r Urba n A rea
Gre ate r Tokyo / O the r Urba n A reas
Major Region al Cities

Retail

20.0%

70.9%

6.5% 22.6%

29.2%

67.5%

3.3%

End of September
2013(end of 16th FP)

87.6%

％
12.4%

71.4%

4.3% 24.4%

17.2%

76.1%

6.7%

As of the date of thisdocument(17th FP) (Note 6)

88.1%

11.9%
％

72.7%

4.0% 23.2%

19.9%

73.7%

6.4%

Note 1: “Total acquisition price” is rounded down to the nearest million yen.
Note 2: “Number of leasable residential units” is the total number of leasable units of properties for residential use the Investment Corporation owns, excluding the shop and office spaces in such properties.
Note 3: “Portfolio PML” is as of the survey in September 2013 on owned assets at the end of the fiscal period ended September 30, 2013 (16th fiscal period) and does not include RINKU HAGURAZAKI
Plaza because the Investment Corporation owns only the land.
Note 4: “Average property age (residential only)” is the average age of properties weighted by their investment ratios based on the acquisition price, and is rounded down to the nearest first decimal place.
Note 5: Investment ratios in diversification status by asset class, by region and by property age is calculated based on the acquisition price of respective owned assets, and is rounded to the nearest firstdecimal place. Accordingly, the investment ratio may not add up to 100%, respectively.
Note 6: The figures include the trust beneficiary interests in domestic real estate (Prime Maison WASEDA, Prime Maison HATCHOBORI, Prime Maison JINBOCHO and Prime Maison GOTENYAMA EAST)
the Investment Corporation acquired on October 1, 2013.

15

Prime Maison JINBOCHO

Ⅲ. Report on the 16th Fiscal Period Public Offering

プライムメゾン東桜
マスト博多
マスト博多

Overview of the 16th Fiscal Period Public Offering
Overview of public offering
Issuance Resolution Date

500,000

Price Determination Date

April 15, 2013 (Monday)

Number of Newly Issued
Investment Units

22,535 units (in which third-party allotment portion:
1,105 units)

Offer Price per Unit

¥484,575

Issue Price per Unit

¥467,677【Changes in NAV Per Unit】(yen)

April 4, 2013 (Thursday)

400,000
300,000

Total Issue Price¥10,539 million

200,000

For Primary offering
Payment Date

Listing date of Newly
Issued Investment Units¥412,775： April 22, 2013 (Monday)

Third-party allotment
portion： May 23, 2013 (Thursday)

For Primary offering： April 23, 2013 (Tuesday)

Third-party allotment
portion¥390,628¥386,647

100,000¥374,277¥342,757¥331,7860： May 27, 2013 (Monday)

Note: “NAV” is calculated by subtracting total distributions in each period from the amount of market value
net assets based on appraisal values.

End of Mar.
End of Sep.
End of Mar.
End of Sep.
End of Mar.
End of Sep.
2011
2013
2011
2012
2012
2013
(End of 11th FP) (End of 12th FP) (End of 13th FP) (End of 14th FP) (End of 15th FP) (End of 16th FP)

Change in Market Value and Trading Volume (October 1, 2011 ─ September 30, 2013)(units)6,000Market value

100

Resolution of issuance:
Apr. 4, 2013
16th FP public offering

Resolution of issuance:
Sep. 6, 2012
15th FP public offering

Trading value(billion yen)
1,000

4,500

3,000

750

75

Average daily trading value(number of units)(October 1, 2011 – March 31, 2012)

Average daily trading value(number of units)(April 1, 2012 – September 30, 2012)

Average daily trading value(number of units)(October 1, 2012 – March 31, 2013)

Average daily trading value(number of units)(April 1, 2013 – September 30, 2013)¥61 million (200 units)¥76 million (224 units)¥233 million (557 units)¥330 million (689 units)

1,500

500

50

250

25

0

0
10/1 11/1
2011

12/1

1/1
2012

2/1

3/1

4/1

5/1

6/1

7/1

8/1

9/1

10/1

11/1

12/1

1/1
2013

2/1

3/1

4/1

5/1

6/1

7/1

8/1

9/1

0
10/1
9/30

17

Overview of Assets Acquired at the 16th Fiscal Period Public Offering
Asset class / Number ofproperties

Acquisition date

Total appraisal value

Total acquisition price

Average property age

SellerResidence / 12 properties

May 1, 2013¥15,951 million¥15,335 million

4.1 years

GK AQUA 1

Esty Maison
HIGASHISHINJUKU

Esty Maison
MOTOAZABU

Esty Maison
TORITSUDAIGAKU

Esty Maison
MUSASHIKOYAMA II

Esty Maison
NAKANO

Esty Maison
SHINNAKANO

Location

Shinjuku, Shinjuku-ku,
Tokyo

Motoazabu, Minato-ku,
Tokyo

Tairamachi, Meguro-ku,
Tokyo

Koyama, Shinagawa-ku,TokyoChuo, Nakano-ku,
Tokyo

Honcho, Nakano-ku,
TokyoCompleted

April 17, 2009

November 9, 2009

February 23, 2009

May 25, 2009

June 24, 2009

October 22, 2009

Acquisition price¥1,370 million¥1,170 million¥729 million¥844 million¥1,540 million¥847 million

Appraisal value¥1,420 million¥1,220 million¥760 million¥871 million¥1,580 million¥894 million

Property age

4.5 years

4.0 years

4.7 years

4.4 years

4.3 years

4.0 years

Property nameEsty Maison
NAKANOFUJIMICHO

Esty Maison
TETSUGAKUDO

Esty Maison
KOENJI

Esty Maison
OSHIAGE

Esty Maison
AKABANE

Esty Maison
OJI

Narihira, Sumida-ku,
Tokyo

Akabane, Kita-ku,
TokyoOji, Kita-ku,
Tokyo

Property name

Exterior

Exterior

Location

Yayoicho, Nakano-ku,
TokyoMatsugaoka, Nakano-ku, Koenjiminami, Suginami-ku,
Tokyo
Tokyo

CompletedFebruary 16, 2009

October 21, 2009

March 10, 2009

April 23, 2010

November 25, 2009

July 6, 2010

Acquisition price¥863 million¥954 million¥958 million¥1,950 million¥2,730 million¥1,380 million

Appraisal value¥896 million¥1,050 million¥1,020 million¥2,060 million¥2,780 million¥1,400 million

Property age

4.7 years

4.0 years

4.6 years

3.5 years

3.9 years

3.3 years

Note 1: “Appraisal value” is the appraisal value in the appraisal reports by real estate appraisers as of the acquisition of the property. Please see pages 48 to 51 for the period-end estimated values as of the end of the
16th FP (end of September 2013).
Note 2: “Property age” is based on the date of this document as the reference date and “average property age” is the average property age of the property weighted by the investment ratio which is based on acquisition
price. In both, the numbers are rounded down to the nearest first decimal place.
Note 3: The above money amounts are rounded down to the nearest indicated unit.

18

Esty Maison NAKANO

Ⅳ. Portfolio Management Status of the 16th Fiscal Period Ended
September 30, 2013

プライムメゾン東桜
マスト博多
マスト博多

Residential Properties Occupancy Status by Investment Area
Status of Average Occupancy Rate during the Fiscal Period by Investment Area
Greater Tokyo / Major Urban Areas

Greater Tokyo / Other Urban Areas

Major Regional Cities

Demand for compact type units and family type units
weakened but recovered by the end of the fiscal period
as a result of flexible leasing

Occupancy had decreased due to temporary increase incancellation but recovered by the end of the fiscal period
by way of appropriately setting rents and other measures

Despite occupancy dropping from the beginning of the
fiscal period in some regions due to drop in demand, theoccupancy rate recovered to 97% toward the end of the
fiscal period

Average occupancy rate during the 16th FP: 94.9%

Average occupancy rate during the 16th FP: 92.0%

Average occupancy rate during the 16th FP: 96.1%

Area data

Number of properties ：53 properties

Number of properties ：4 properties：

118,860.66m2

Total leasable area：

13,985.89m2

Number of leasable
units

：

319 units

Total leasable area
Number of leasable
units

：

Area data

3,537 units

Area data

Number of properties ：24 properties

Total leasable area：

84,346.58m2

Number of leasable
units

：

1,815 units

The occupancy rate had remained weak from the beginning to the middle of the 16th fiscal period but picked up toward theperiod end, with the period-average occupancy rate of the entire portfolio secured at 95% or higher

Change in Occupancy Rates by Investment Area Classification
Greater Tokyo/Major Urban Areas

Greater Tokyo / Other Urban Areas

Major Regional Cities

Residences overall

100%

97.1%

97.1%

97.0%

98.2%

97.7%

96.8%

97.4%

96.4%

97.5%

96.8%

96.1%

96.4%

95%

96.7%

96.8%

95.9%

95.1%

95.4%
20

95.3%

94.0%

93.8%

90%

Average occupancy rate :during the 13th FP

85%
End of Sep. 2011(End of 12th FP)

End of Dec.

96.7%

Average occupancy rate :during the 14th FP

End of Mar. 2012(End of 13th FP)

End of Jun.

95.6%

Average occupancy rate:during the 15th FP

End of Sep. 2012(End of 14th FP)

End of Dec.

96.0%

Average occupancy rate:during the 16th FP

End of Mar. 2013(End of 15th FP)

End of Jun.

95.2%
End of Sep. 2013(End of 16th FP)

Note: “Change in occupancy rates by investment area classification” shows the month-end occupancy rates with classification by investment area based on residential properties owned as of the end ofeach month and are rounded to the nearest fist decimal place. Also, the average occupancy rates during the periods are the average occupancy rates as of the end of each month during each period.
Furthermore, “area data” shows figures for properties owned as of the end of the 16th FP (ended September 2013).

20

Residential Properties Rent Status
Rent Trends in New Contracts
12th FP

13th FP

14th FP

15th FP

16th FP

486

488

499

547

588

No. of new contract
Total increase
in rent(number of cases)
Total decrease
in rent (numberof cases)Rent Trends in Contract Renewals-¥1,706
thousand(212)-¥1,416
thousand(200)-¥1,101
thousand(152)-¥1,514thousand
(223)

¥ 678
thousand(193)-¥ 1,337
thousand(186)

Change in rent (net)-¥1,185
thousand-¥908
thousand-¥290
thousand-¥1,103thousandRate of change in rent
against previous rent

-2.2%

-1.7%

-0.5%

-1.7%

¥521 thousand ¥508 thousand ¥811 thousand ¥411 thousand
(138)
(143)
(194)
(138)

Ratio of decrease in rent

Ratio of no rent change

14th FP

15th FP

16th FP

427

704

616

657

641

-

-

¥7 thousand
(1)

-

-

No. of renew contract
Total increase
in rent(number of cases)-¥63 thousand -¥59 thousand -¥34 thousand -¥40 thousand
(9)
(8)
(5)
(9)

-

-¥ 659thousand

Change in rent (net)-¥63 thousand -¥59 thousand -¥26 thousand -¥40 thousand

-

-0.9%

Rate of change in rent
against previous rent

-0.1%

Ratio of decrease in rent

Ratio of increase in rent

-0.1%

-0.0%

Ratio of no rent change

-0.1%

0%

Ratio of increase in rent

100%

43.6％

41.0％

28.0％

29.7％

28.4％

29.3％

30.5％

25%

2.1 ％

31.6％

40.8％

0.8 ％

1.1 ％

1.4 ％

75%

30.7％

50%

35.5％

50%

99.0 ％

98.9 ％

97.9 ％

98.6 ％

100.0 ％

34.0％
38.9％

25%

32.8％

25.2％

0%

Replacementrate

13th FP

Total decrease
in rent (numberof cases)

100%
75%

12th FP

0.2％
0%12th fiscal
period13th fiscal
period14th fiscal
period15th fiscal
period16th fiscal
period

13.6%

13.4%

12.8%

12.6%

11.4%

Change in rent improved against previous fiscal period

Renewalrate

12th fiscal
period13th fiscal
period14th fiscal
period15th fiscal
period16th fiscal
period

81.2%

79.0%

82.4%

81.6%

82.1%

There was no change in rent for all contract renewals, with therenewal rate remaining at a high level

Note: The rate of change in rent against previous rent is calculated by dividing the total of net change in monthly rent for new contracts and contract renewals in each period by the total of previous rent, and is rounded
to the nearest first decimal place. Furthermore, rate of replacement is calculated by dividing the number of new contracts in residential units the Investment Corporation owns as of the end of each month by the
number of leasable residential units and is rounded to the nearest first decimal place.

Trend in unit rent per tsubo for occupied space
End of fiscal
period ended
March 2013(end of 15th FP)¥10,729
per month-0.35％End of fiscal
period ended
September 2013(end of 16th FP)¥10,691
per month(down ¥38 from the end of theprevious fiscal FP)

Note: Calculated on the basis of 69 properties (81 residential properties owned at the end of the 16th fiscal period less the 12 properties
acquired in the 16th fiscal period)(Reference) End of fiscal period ended
September 2013 (end of 16th FP)¥10,921 per monthNote: Calculated on the basis of 81 residential properties
owned at the end of the 16th fiscal period

21Trends in Occupancy and Tenants of Retail Facilities
Occupancy Status of Retail Facilities
Occupancy rate increased slightly as a result of the progress in leasing vacant spaces of b-toss IKEBUKURO.
We will continue our endeavors to bring the entire retail portfolio to full occupancy as soon as possible.

Occupancy Status in the 16th FP ended September 2013
Name

End of 15thFP

End of 16th
FP

Periodaverage

HAMAMATSU Plaza

100%

100%

100%

8F

Contracted in Juneb-town JINGUMAEⅡ

100%

100%

100%

7F

Occupied

RINKU HAGURAZAKI Plaza

100%

100%

100%

6F

Occupiedb-town MINAMIAOYAMA

100%

100%

100%

5F

Contracted in June

KOJIMA NEW KAMIFUKUOKA

100%

100%

100%

4F

Occupied

3F

Application
received in October

2F

Vacant section

b-toss IKEBUKURO

66.3%

77.5%

75.7%

Joy Square Yugawara

100%

100%

100%

Bell Plaza Shopping Center

100%

100%

100%

Retail facilities total

99.6%

99.6%

99.7%

Leasing status of b-toss IKEBUKURO

1F
B1F

OccupiedOccupiedOccupied

There were three vacant sections as of the endof the previous fiscal period, followed by anothersection becoming vacant in July
Successfully invited new tenants as a result of
focusing on leasing activities, with contracts
concluded for 2 sections in the 16th fiscal period
and application made to another section in OctoberContinue to implement agile leasing strategy incollaboration with new property management company
in order to achieve lease-up as soon as possible

Major tenants becoming due for contract maturity in the 17th FP ending March 2014
Property name

RINKU HAGURAZAKI Plaza

Tenant name

Kohnan Shoji Co., Ltd

Contract expiration date

January 28, 2014

Leased floor area

27,815.58m2

Property name

KOJIMA NEW KAMIFUKUOKA

Tenant name

Kojima Co., Ltd.

Contract expiration date

March 8, 2014

Leased floor area

3,413.40m2

Negotiating with tenant toward contract renewal

Continuing due to contract renewed automatically22Changes in Unrealized Gain / Loss, Etc.
Changes in unrealized gain / loss of the entire portfolio-15%

Unrealized gain / loss ratio (left axis)

Unrealized gain / loss (right axis)

Period-end book value (right axis)

Period-end estimated value (right axis)(million yen)
150,000-2,413

138,507-4,211-10.7％

136,094

125,592-6,031-10%
103,627-11,082

98,226

121,380

107,112-7,455100,000

101,080

90,771

92,545-7.6％
Decreased by 1.7 points
compared to the 15th
fiscal period end

-5%

-5.6％

50,000

-3.4％

-1.7％
0%

12th fiscal period end(Sep. 30, 2011)
58 properties

13th fiscal period end(Mar. 31, 2012)

Partial sale of
HAMAMATSU Plaza

60 properties

14th fiscal period end(Sep. 30, 2012)

15th fiscal period end(Mar. 31, 2013)

66 properties

77 properties

16th fiscal period end(Sep. 30, 2013)

Sales of HAMAMATSU
Plaza East, Ito-Yokado
Building

0

89 properties

Unrealized gain/loss, etc. by asset class

Residential

RetailEnd of 15th FP

End of 16th FP

Appraisal value
Book value
Unrealized
gain / loss
Unrealized
gain / loss ratio¥103,891 million¥106,028 million¥121,918 million¥121,242 million-¥2,137 million¥675 million

Appraisal value
Book value
Unrealized
gain / loss
Unrealized
gain / loss ratio¥17,489 million¥19,563 million¥14,176 million¥17,264 million

・ Period-end estimated value increased for 5
properties out of 8 properties in total-¥2,073 million-¥3,088 million-10.6%-17.9%

・ Unrealized loss ratio increased for all retailfacilities due to increase in unrealized loss of
HAMAMATSU PLAZA

-2.0%

0.6%

・ Period-end estimated value increased for 62
properties out of 69 properties due to a decrease incap rate, etc.
・ Residences overall turned to unrealized gain in the
16th fiscal period

Shrinking trend of
unrealized gain / loss ratio
continues.

Note: Period-end unrealized gain / loss ratio = Period-end unrealized gain / loss ÷Period-end book value

Unrealized loss of the entire
portfolio further decreased
from the end of the 15th FP.

Period-end unrealized gain / loss = Period-end estimated value – Period-end book value

23

Esty Maison TETSUGAKUDO

Ⅴ. Financing Activities of the 16th Fiscal Period Ended
September 30, 2013

プライムメゾン東桜
マスト博多
マスト博多

Overview of Financing Activities (1)Overview of Financing Activities in the 16th Fiscal Period ended September 2013
Implemented refinance totaling ¥8 billion in August 2013
Drawdown
Date

Loan
AmountLoan Term/ Interest Rate
(Spread)Feb. 2011¥5.7 billion

2 years 6 months/
Floating (0.70%)

Jun. 2011¥2.3 billion

Approx. 2 years 3 months/
Floating (0.70%)

Drawdown
Date

Loan
AmountLoan Term/ Interest Rate (Spread)¥5.5 billion

7 years/ Interest fixed with interest
swap contract (0.50%)

Aug. 2013¥2.5 billion

5 years / Floating (0.40%)

Promoted further
stabilization of financialbase by fixing interest rates
of some borrowings alongwith a reduction in the
spreadFlexible procurement of funds to acquire properties【Borrowings in the 17th FP (ending March 2014)】
Drawdown
Date

Loan
AmountLoan Term/ Interest Rate (Spread)

Drawdown
Date

Loan
AmountLoan Term/ Interest Rate (Spread)May 1,
2013¥4.9 billion

10 months/ Floating (0.25%)

Oct. 1,2013¥3.3 billion

11 months/ Floating (0.20%)

Procured funds in shortterm loans fromthree megabanks, further
reducing the spread

Status of credit ratings
Japan Credit Rating Agency, Ltd.
(JCR)

AA(Stable)

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

Rating by R&I
raised from A (positive)
in April 2013

A+
(Stable)Changes in Average Borrowing Cost Rates during the Fiscal Period (Notes 1 and 2)[Reference] Spread of Long-Term Loans Payable of around 5 Years after Change of Sponsors

3.0%
Continued to achieve a further reductionof the borrowing cost rate including
borrowing related expenses

2.0%

2.45％ 2.47％

Drawdown
Date

1.0%

1.56％

1.47％

1.38％

August 30,
2013¥2.705billion¥4.5
billion¥5.2425
billion¥2.1
billion¥5.5
billion¥2.5
billion

Loan Term

Approx. Approx.
6 years 5 years
7 months 1 month

Approx.
6 years
1 month

7 years

5 years

7 years

5 years

0.70%

0.50%

0.55%

0.45%

0.50%

0.40%

Spread

9th FP 10th FP 11th FP 12th FP 13th FP 14th FP 15th FP 16th FP

February 28,
2013¥3.882billion

1.25％

0.0%

February 8,
2013

Loan Amount

1.97％
1.61％

August 2,
2012

0.60%

The spread continued on a downward trend

Notes: 1. Average borrowing cost rate during the fiscal period = Period borrowing cost (annualized) ÷ Balance of period average interest-bearing debt, Borrowing cost = Interest expenses + Borrowing related expenses + Interest
expenses on investment corporation bonds
2. Rounded to the nearest second decimal place.

25

Overview of Financing Activities (2)Continued to promote lengthening of borrowing periods while maintaining optimal balance between fixed and floating rates such as byutilizing interest rate swap agreements

Ratios of Short-Term and Long-Term Borrowings (Notes 1 and 2)

Ratios of Floating and Fixed Interest Rates (Notes 1 and 2)
Flating
100%
80%

34.5％

13.5％

（24.0％）

28.3％

80%

100％
60%

60%

65.5％

86.5％

6.4％

（25.8％）（25.4％）

97.5％

100％

10.3％

（25.9％）（24.8％）

93.6％

40%

71.7％

20%

20%
0%

of this, long-term borrowings scheduled to be repaid within 1 year)

89.7％

90.3％

88.8％

40%

Long-term (
2.5％

100%

9.7％

11.2％

Short-term

Fixed

13th FP end(Mar. 31, 2012)

14th FP end(Sep. 30, 2012)

15th FP end(Mar. 31, 2013)

16th FP end(Sep. 30, 2013)

As of date of
document

Average Remaining Period of Borrowings (Note 3)0%

13th FP end(Mar. 31, 2012)

14th FP end(Sep. 30, 2012)

15th FP end(Mar. 31, 2013)

16th FP end(Sep. 30, 2013)

As of date of
document

Diversification Status of Repayment Dates
As of date of document(years)(million yen)

3.5

3.1 years

3.2 years

2.9 years

3.0
2.5

2.1 years

16,00014,000Long-term borrowing

Investment corporation bonds

・・・Refinancing during the period ended Sep. 2013
・・・New borrowings during the period ended Sep. 2013
・・・New borrowings on October 1, 2013

4,900

12,0002.3 years

Short-term borrowing

3,300

10,000

2.0

2,000

8,000
1.5

6,000

1.0

4,000

0.5

2,000

0.0

0

4,000

9,500
10,137

5,500

9,509

8,382
6,650

2,500

2,705

5,242

2,850
2,100

13th FP end
14th FP end
15th FP end
16th FP end(Mar. 31, 2012) (Sep. 30, 2012) (Mar. 31, 2013) (Sep. 30, 2013)

As of date of
document

16th FP 17th FP 18th FP 19th FP 20th FP 21st FP 22nd FP 23rd FP 24th FP 25th FP 26th FP 27th FP 28th FP 29th FP 30th FP(Sep. 30, (Mar. 31, (Sep. 30, (Mar. 31, (Sep. 30, (Mar. 31, (Sep. 30, (Mar. 31, (Sep. 30, (Mar. 31, (Sep. 30, (Mar. 31, (Sep. 30, (Mar. 31, (Sep. 30,2013) 2014) 2014) 2015) 2015) 2016) 2016) 2017) 2017) 2018) 2018) 2019) 2019) 2020) 2020)

Notes: 1. The above ratios are rounded to the nearest first decimal place.
2. Ratio against the total interest-bearing debt.
3. The figures are the result of calculation based on the weighted average using the remaining period from each corresponding date to the repayment (redemption) dates of loans and investment corporation
bonds, and their balances and rounded down to the nearest first decimal place.

26

Overview of Financing Activities (3)Overview of Interest-Bearing Debt
Balance at end of 16th FP

Period-end average
Interest Rate on
Procurement(Note 2)

Balance as ofdate of document

Short-term loans¥4,900 million

0.4%¥8,200 million

Long-term loans (Note 3)¥65,075 million

1.2%¥65,075 million

-

-

-

Investment corporation bonds¥6,000 million

0.8%¥6,000 million

Total interest-bearing debt

¥75,975 million

1.1%¥79,275 million

Interest-bearing security deposits

80,000358
6,000

40,000

As of date of document
Share

45,42945,42920,00019,646

19,64618,137

4,900

8,200

Sep . 30, 2 013(En d o f 16th FP)

As o f date of
document0

Outstanding Balance

Mar. 31 , 2013
(En d o f 15th FP)

Solid bank formation centering on leading domestic
financial institutions

Mizuho Bank, Ltd.

¥15,832 million

21.6%

Sumitomo Mitsui Banking Corporation¥15,673 million

21.4%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥7,350 million

10.0%

Sumitomo Mitsui Trust Bank, Limited¥5,300 million

7.2%

1.4％ 1.4％
1.4％

Mizuho Trust & Banking Co., Ltd.

¥5,234 million

7.1%

1.4％

Mitsubishi UFJ Trust and Banking Corporation¥4,642 million

6.3%

Development Bank of Japan Inc.

¥4,141 million

5.7%

The Norinchukin Bank

¥3,852 million

5.3%

Resona Bank, Limited.

¥3,650 million

5.0%

Aozora Bank, Ltd.

¥1,800 million

2.5%

The Senshu Ikeda Bank, Ltd.

¥1,000 million

1.4%¥1,000 million

1.4%

The 77 Bank. Ltd.

6,000

6,000

46,938Loans Payable Outstanding by Financial Institution
Financial Institution

Investment corporation bonds
Current portion of long-term loans

60,00051.0%

LTV (Note 4)

Interest-bearing security deposit
Long-term loans
Short-term loans(million yen)

1.1％

0.7％
0.7％

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-MitsubishiUFJ, Ltd.
Sumitomo Mitsui Trust Bank, Limited
Mizuho Trust & Banking Co., Ltd.

2.5％
5.0％

21.6％

5.3％

Mitsubishi UFJ Trust and Banking
Corporation
Development Bank of Japan Inc.
The Norinchukin Bank
Resona Bank, Limited.

5.7％

Aozora Bank, Ltd.

6.3％

The Senshu Ikeda Bank, Ltd.

21.4％

The Hiroshima Bank, Ltd.

¥1,000 million

1.4%

The Yamaguchi Bank, Ltd.

¥1,000 million

1.4%

Shinkin Central Bank

¥800 million

1.1%

The Shizuoka Bank, Ltd.

¥500 million

0.7%

Shinkin Central Bank

The Bank of Fukuoka, Ltd.

¥500 million

0.7%

The Shizuoka Bank, Ltd.

¥73,275 million

100.0%

Total debt

7.1％
7.2％

The 77 Bank. Ltd.
The Hiroshima Bank, Ltd.

10.0％

The Yamaguchi Bank, Ltd.

The Bank of Fukuoka, Ltd.

Notes:1. Concerning figures in the graphs and tables above, money amounts of less than one million yen are rounded down and percentage figures are rounded to the nearest first decimal place.
2. The Period-end average interest rate on procurement is the weighted average of applied interest rates as of September 30, 2013, and the figures are rounded to the nearest first decimal place.
3. Includes current portion of long-term loans payable.
4. LTV = Period-end total interest-bearing debt / Period-end total assets (Interest-bearing debt = Loans+ Investment corporation bonds)

27

Esty Maison AKABANE

Ⅵ. Forecasts for the 17th Fiscal Period Ending March 31, 2014
and Current Management Policy

プライムメゾン東桜
マスト博多
マスト博多

Forecasts for the 17th Fiscal Period Ending March 31, 2014
Fiscal Period Ended
Sep.30, 2011(183 days)

Fiscal Period Ended
Mar. 31, 2012(183 days)

Fiscal Period Ended
Sep.30, 2012(183 days)

Fiscal Period Ended
Mar. 31, 2013(182days)

Fiscal Period Ended
Sep.30, 2013(183 days)

Fiscal Period Ending
Mar. 31, 2014(182 days) (Forecast)

Operating revenue (million yen)

3,533

3,705

3,567

4,038

4,688

4,886

Operating income (million yen)

1,622

1,600

1,663

1,908

2,179

2,188

Ordinary income (million yen)

1,156

1,165

1,193

1,435

1,684

1,710

Net income (million yen)

1,155

1,164

1,191

1,433

1,681

1,707

Cash distributions per unit (yen)10,045

10,117

10,351

10,45910,537

10,700<Assumptions for forecast of fiscal period ending March 31, 2014>◆ Assets under management: 93 properties owned as ◆ Fixed property, etc. that will be recorded as expenses related ◆ Interest expenses, borrowing related expenses, etc.: Approx.
of October 1, 2013
to rent business: Approx. ¥225 million¥481 million◆ Administration service fees: Approx. ¥452 million◆ Depreciation and amortization: Approx. ¥1,055 million◆ Number of investment units issued and outstanding: 159,605 units
Notes: 1. Money amounts less than the indicated denomination are rounded down.
2. The above figures are calculated based upon certain assumptions as of November 14, 2013. Actual operating revenue, operating income, ordinary income, net income and cash distributions per unit may differ as a result of subsequentacquisitions or sales of real estate, trends in real estate markets, changes in the operating environment or other conditions affecting the Investment Corporation. The above forecasts are not intended to be guarantees of business results or
cash distributions.

◇ Estimation on Impact of Increase in Consumption Tax on Cash Distribution per Unit
* It is an estimation on impact of increase in consumption tax, which is scheduled to be implemented in April 2014, on cash
distribution per unit. It is calculated based on an assumption that consumption tax rate of 8% after the increase will beapplied to the assumptions for forecasts of fiscal period ending March 31, 2014.

Operating Revenue, Operating Income and Net Income(million yen)
6,000

Operating revenue

Operating income

Amount of impact on cash
distribution per unit (estimate)-¥222

Cash Distribution Per Unit

Net income(yen)

10,000
5,000
8,000

4,000

6,000

3,000
2,000

4,000

1,000

2,000
0

0
Period Ended
Sep. 2011

Period Ended
Mar. 2012

Period Ended
Sep. 2012

Period Ended
Mar. 2013

Period Ended
Sep. 2013

Period Ended
Mar. 2014

Period Ended
Sep. 2011

Period Ended
Mar. 2012

Period Ended
Sep. 2012

Period Ended
Mar. 2013

Period Ended
Sep. 2013

Period Ended
Mar. 201429

Current Management Policy (1)Phase II of the Investment
Corporation’s growth strategy inprogress

Management Policy

Strategic Target

Increasing profitability through fullfledged expansion of asset size

Aiming for an asset size of ¥200
billion while having regard to the
cash distribution level

Internal Growth Strategy

Financial Strategy

External Growth Strategy
 Continuous property acquisitions•••

Capacity to acquire properties with LTV
up to 55%
Approximately ¥10 billion (as of the dateof this document)
Utilization of sponsor’s pipeline andwarehousing function
Considering replacement of assets undermanagement with a view to transforming
into a REIT specialized in residential
properties in future (Considering distributions in Focusing on occupancy rates••

Reducing down time by setting rents at
an appropriate level and in a flexible
mannerUtilizing of leasing network of the Sekiwa
Real Estate Group(Consolidation of property managementcompanies in progress scheduled tocomplete by the year end)

 Increasing of profitability

excess of earnings as well when loss on sale occurs)•

Discussing expansion of investmentareas Target of NOI yield upon property
acquisitions•

Promoting contract renewals with rents
unchanged while keeping the current
renewal rate of tenants

Greater Tokyo
Major Regional Cities
Around 5.0% or higher 5.5% or higher

Focusing on upward revision of rents
and proactive acquisition of key money
for high occupancy properties

Reinforcement of profit basethrough expansion of theportfolio size

Increasing of profitability ofexisting portfolio•

 Conservative control of LTV•

Controlling LTV conservatively with thefirst half of the 50% level as a target for
LTV ceiling Reduction of financing costs•

Reducing financing costs by issuinginvestment corporation bonds

 Maintenance and enhancementof financial soundness•

Maintaining the ratio of borrowings with
fixed interest and promoting further
lengthening of borrowing periods

Further reinforcement of thestability of financial base

Steady implementation of each strategy, with around three years set as the period required to achieve thestrategic target of Phase II of the Investment Corporation’s growth strategy
30Current Management Policy (2)Enhancement of Opportunities for Acquiring High-Quality Residential Properties in the Future
The following “Prime Maison” properties, which Sekisui House started planning after change of sponsors
and can be candidate properties for the Investment Corporation to acquire in the future, are either
completed or under construction or are in the planning stage.

Exchangeof opinion

 Images of properties that are “under construction” are renderings based on the design documents and may differ from the actual buildings. Also, “total units” includes units that are not forresidential purpose. Furthermore, the Investment Corporation has no specific plans to acquire any of the properties below as of the date of this document.

Completed properties

Under construction (confirmed)

1 property 86 units total

6 properties 581 units total

Properties in theplanning stage

Demandinformation

Development Department

Supplyinformation

Development by Sekisui House

Sekisui House2
properties

356
Sekisui House SI AssetManagement

Real Estate Investment
Department

units total
Prime Maison
MORISHITA(Koto-ku, Tokyo)
86 units total(Completed in May 2013)(Tentative name)Prime Maison SHINAGAWA(Shinagawa-ku, Tokyo)
50 units total(Tentative name)Prime Maison
YOKOHAMA NIHONODORI(Yokohama City, Kanagawa)
137 units total(Tentative name)Prime Maison SHIBUYA(Shibuya-ku, Tokyo)
70 units total(Tentative name)Prime Maison EBISU(Shibuya-ku, Tokyo)
100 units total

Securing preferential negotiation rights

All 9 properties are located in Greater Tokyo / Major Urban Areas (of these, 8 are in Tokyo’s 23 wards)

Overview of agreement
concerning sale preferential
negotiation rightObtained the rights for preferential negotiations with regard to the acquisition for a set time period(total of minimum acquisition price: ¥13,840 million yen) for 2 residential properties in Tokyo’s 23 wards.
Property name

LIETOCOURT OSHIMA

Property name

LIETOCOURT KINSHICHO

Location

Koto-ku, Tokyo

Location

Sumida-ku, Tokyo<Agreement execution date>

Asset class / Total
units

Residence / 316 units

Asset class / Total
units

Residence / 295 units

March 29, 2013

Minimum acquisition
price¥7,120 million

Minimum acquisition
price¥6,720 million

Appraised NOI yield

5.5%

Appraised NOI yield

5.4%

Appraisal value¥ 7,540 million

Appraisal value¥6,920 million<Counterparty>
GK AQUA 2<Preferential
negotiation right validity
expiration date>

April 9, 2016

Note : “Appraisal value” is the appraisal value by real estate appraisers as of March 1, 2013. Also, “Appraised NOI yield” is calculated by dividing each asset’s appraised NOI based on appraisal
reports by real estate appraisers by the minimum acquisition price and rounded to the nearest first decimal place.

31

Esty Maison Oji

Ⅶ. Appendix

エスティメゾン笹塚
プライムメゾン東桜
マスト博多
マスト博多

Balance Sheets (1)15th fiscal period(As of March 31, 2013)
Million yen

16th fiscal period(As of September 30, 2013)

Percent of total

Million yen

ChangePercent of total

Period on period(%)

Million yen

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Deferred tax assets
Consumption tax receivable
Other
Allowance for doubtful accounts
Total current assets
Noncurrent 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
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
Other
Total investments and other assets
Total noncurrent assets

2,636
4,636
61
117
0
60
13
-1
7,523

59,523-7,51752,005
470
-113
357
726
-204
522
69
-27
41
72,505
125,432
160
3
163
159
235
188
104
688
126,283

5.6

5,343
4,143
83
130
0
37
20
-1
9,758

93.7

66,368-8,04958,319
487
-106
381
837
-235
602
76
-32
43
79,003
138,349

0.2

158
2
160

0.5
94.4

235
224
109
569
139,079

6.6

2,707
-492
21
13
0
-22
7
0
2,234

29.7

92.9

6,845
-531
6,314
16
6
23
111
-31
80
6
-5
1
6,497
12,917

10.3

0.1

-2
-0
-2

-1.6

0.4
93.4

-159
35
5
-118
12,796-17.2
10.1

Deferred assets
Investment corporation bond issuance costs

36

Total deferred assets

36

0.0

33

0.0

-3

-9.1

133,843100.0

148,871100.0

15,027

11.2

Total Assets

33

-3

33

Balance Sheets (2)15th fiscal period(As of March 31, 2013)
Million yen

16th fiscal period(As of September 30, 2013)

Percent of total

Million yen

ChangePercent of total

Million yen

Period on period (%)

Liabilities
Current liabilities
Operating accounts payable

233

217

-16

Short-Term loans payable

-

4,900

4,900

Current portion of long-term loans payable

18,137

19,646

1,509

Accounts payable-other

382

368

-13

Accrued expenses

78

79

1

Income taxes payable

1

1

-0

Advances received

383

333

-50

Other

13

16

Total current liabilities

19,22914.4

25,562

2
17.2

6,333

32.9

Noncurrent liabilities
Investment corporation bonds

6,000

6,000

-

Long-term loans payable

46,93845,429-1,509Tenant leasehold and security deposits in trust

2,487

Total noncurrent liabilities

55,42541.4

53,332

1,903
35.8-2,093-584-3.8

Total Liabilities

74,65555.8

78,895

53.0

4,240

5.7

57,75543.1

68,29445.9

10,53918.2

Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)

1,433

Total surplus

1,433

1.1

1,681

1.1

248

17.3

Total unitholders’ equity

59,18844.2

69,97647.0

10,78718.2

59,18844.2

69,97647.0

10,78718.2

133,843100.0

148,871100.0

15,027

11.2

Total Net Assets
Total Liabilities and Net Assets

1,681

248

34

Statements of Income
15th fiscal period
16th fiscal period
from October 1, 2012 to March 31, 2013 from April 1, 2013 to September 30, 2013
Million yen

Percent of total (%)

Million yen

Percent of total (%)

ChangeMillion yen

Period on period (%)

Operating revenue
Rent revenue-real estate
Silent partnership distribution
Total operating revenue

4,032

4,683

5

4

4,038

100.0

4,688

650
-1
100.0

649

16.1

Operating expenses
Expenses related to rent business

1,745

2,066

-

8

8

Asset management fee

246

295

49

Asset custody fee

10

12

1

Administrative service fees

25

28

3

Directors’ compensations

3

3

-

Provision of allowance for doubtful accounts

0

0

-0

Loss on sales of real estate properties

320

Other operating expenses

98

Total operating expenses

2,130

52.7

2,508

53.5

377

17.7

1,908

47.3

2,179

46.5

271

14.2

Operating income

93-5

Non-operating income
Interest income

0

0

0

Reversal of distributions payable

0

0

-0

Interest on refunds

1

0

-1

Refund on noncurrent asset tax, etc.

1

-

-1

Compensation received

-

0

0

Other

-

0

Total non-operating income

3

0.0

2

0
0.0

-1

-40.0

Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds

373

387

14

3

22

18

Amortization of investment corporation bond issuance costs

0

3

2

Borrowing related expenses

63

62

-1

Investment unit issuance expenses

31

21

-10

Other

2

0

Total non-operating expenses

-2

476

11.8

497

10.6

21

4.6

Ordinary Income

1,435

35.5

1,684

35.9

248

17.3

Income before Income Taxes

1,435

35.5

1,684

35.9

248

17.3

Income taxes-current

2

Income taxes-deferred

0

Total income taxes

2

0.0

2

0.0

0

3.3

1,433

35.5

1,681

35.9

248

17.3

35.5

1,681

35.9

248

Net Income
Retained earnings brought forward
Unappropriated Retained Earnings (undisposed loss)

2
-0

0
1,433

0
-0

0

-0
17.3

35

Statements of Cash Flows / Cash Distributions
Statements of Cash Flows
15th fiscal period
16th fiscal period
from October 1, 2012
from April 1, 2013
to March 31, 2013
to September 30, 2013
Million yen
Million yen
Net cash provided by (used in) operating activities

15th fiscal period
from October 1, 2012
to March 31, 2013

16th fiscal period
from April 1, 2013 to
September 30, 2013

Million yen

Million yen

Net cash provided by (used in) investment activities

Income before income taxes

1,435

1,684

Purchase of property, plant and equipment in trust

Depreciation and amortization

854

1,019

Proceeds from refund of investment securities

0

3

-0

-0

Interest income-0-0Interest expenses

377

410

Decrease (increase) in operating accounts
receivable

-32

-21

Decrease (increase) in prepaid expenses

29

-14

Decrease (increase) in consumption tax receivable

64

22

Increase (decrease) in operating accounts payable

54

19

Increase (decrease) in accounts payable-other29

Increase (decrease) in advances received
Decrease from sale of property, plant andequipment in trust

Amortization of investment corporation bondissuance costs
Increase (decrease) in allowance for doubtful
accounts

-158

-803
-5
-16,677

Proceeds from short-term loans

2,300

4,900

Repayments of short-term loans payable-3,800-53

Proceeds from long-term loans payable

14,842

8,000

23

-50

Repayments of long-term loans payable-7,342-8,000-2,232

Proceeds from the issue of investment corporation bonds

5,962

-

Proceeds from the issue of investment units

7,185

10,495

Dividends paid

-1,190-1,432

-33
16

2,827

5,339

0

0

-368

-409

Net cash provided by (used in) operating activities

219-19,216

49

Income taxes paid

214

Net cash provided by (used in) investment activities-58

Interest expenses paid

159

-3

Other

Interest income received-16,246

35

Decrease (increase) in investments and other assets

Decrease (increase) in long-term prepaid expenses

Subtotal

Proceeds from tenant leasehold and security deposits in trust
received
Repayments of tenant leasehold and security deposits in trust
received-19,304

-2

-2

2,456

4,928

Net cash provided by (used in) financing activities-0-17,957

13,962

Net increase (decrease) in cash and cash equivalents

1,197

2,214

Cash and cash equivalents at beginning of period

6,074

7,272

Cash and cash equivalents at end of period

7,272

9,486

Other
Net cash provided by (used in) financing activities

Cash Distributions
15th fiscal period
from October 1, 2012
to March 31, 2013
Yen

16th fiscal period
from April 1, 2013
to September 30, 2013
Yen

I Unappropriated retained earnings

1,433,616,707

1,681,846,853

II Cash distributions

1,433,615,130

1,681,757,885（10,459）（10,537）

1,577

88,968(Cash distributions per unit)
III Retained earnings brought forward

36

Summary of Selected Financial Data
15th fiscal period
from October 1, 2012 toMarch 31, 2013

16th fiscal period
from April 1, 2013 to
September 30, 2013

182 days

183days

Total assets

133,843 million yen

148,871million yen

Net assets

59,188 million yen

69,976million yen

Unitholders’ capital

57,755 million yen

68,294million yen

Investment units issued

137,070 units

159,605units

Net assets per unit

431,813 yen

438,432yen

1,433 million yen

1,681million yen

10,459 yen

10,537yen

2.3%

2.4％

Return on unitholders’ equity2(annualized)

5.2%

5.2％

Unitholders’ equity ratio3

44.2%

47.0％

77

89

295,116.85㎡

301,179.47㎡

97.7%

97.1％

Depreciation expense

853 million yen

1,018million yen

Capital expenditures

23 million yen

17million yen

Leasing Net Operating Income4(NOI)

3,141 million yen

3,636million yen

Funds from Operation5 (FFO)

2,288 million yen

2,709million yen

16,692 yen

16,978yen

71,434 million yen

75,975million yen

53.4%

51.0％

55.3%

52.7％

6.1 times

6.8times

Business days

Total cash distributions
Cash distributions per unit
Ordinary income to total assets(annualized)

1

Total number of properties
Total rentable floor area
Period-end occupancy rate

FFO per unit
Total interest-bearing debt
6

Loan to Value (LTV)Interest-bearing debt ratio7(1) Ordinary income to total assets = Ordinary income (annualized) / Average total assets
Average total assets = (Period-beginning total assets + Period-end total assets) / 2(2) Return on unitholders’ equity = Net income (annualized) / Average net assets
Average net assets = (Period-beginning net assets + Period-end net assets) / 2(3) Unitholders’ equity ratio = Period-end net assets / Period-end total assets(4) Leasing NOI = Leasing operating income (= Rent revenue-real estate – Expenses related to rent
business) + Depreciation and amortization (Expenses related to rent business)(5) FFO = Net income – Gain on sales of real estate properties + Loss on sales of real estate
properties + Depreciation and amortization(6) LTV = Period-end interest-bearing debt / Period-end total assets
Interest-bearing debt = Borrowings + Investment corporation bonds + Interest-bearing tenantleasehold and security deposits(7) Interest-bearing debt ratio = Period-end interest-bearing debt / (Period-end interest-bearing debt +Unitholders’ capital)(8) DSCR = (Net income + Repayment of interest-bearing debt + Interest expenses + Depreciation
and amortization) / (Repayment of interest-bearing debt + Interest expenses)

8

Debt Service Coverage Ratio(DSCR)

Note: Ratios are rounded to the nearest first decimal place.

37

History of the Investment Corporation since ListingManagement before change of sponsor

Total
acquisition
price(million yen)
150,000

Management after change of sponsor

Assets acquired after change of sponsor
Assets acquired before change of sponsor

140,000
130,000
120,000
110,000
100,000
90,00038
42properties properties
82,217
81,473

July 28, 2005
Listed on the Tokyo
Stock Exchange

80,00060,00050,00040,00021
properties
16
properties 47,516
41,39228
2006
properties Public offering
61,70728,500 units
November 16,
2006
Third-party
allotment
1,500 units

August 29,
2005
Third-party
allotment
2,000 units

30,00020,000

0

Sale of 1
property-10,000

October 26,
2012
Third-party
allotment
1,540 units

April 2, 2010
Third-party
allotment
10,400 units

November 21,
2007
Third-party
allotment
1,170 units

Change of trade
nameMarch 13,
2007
Investment
corporationbonds¥10,000 million

10,000

As of IPO

October 1,
2012
Public offering
20,460 units

October 24,
2007
Public offering
17,500 units

October 18,

70,00048
properties
91,81858
53
57
60
properties
53
53
53
52
properties properties
99,920 properties properties 103,974 106,234 properties
properties properties
101,006(Note 1)
99,92099,92099,91999,04866
properties
110,214(Note 1)77
properties
128,794

February 28,
2013
Investment
corporation
bonds¥6,000 million

Sale of 1
property

Partial sale of
HAMAMATSU Plaza, etc.

93
properties
89
properties 147,672
141,472

April 22,2013
PublicOffering
21,430units

May 23,
2013
Third-party
allotment
1,105 units

Sales of HAMAMATSU Plaza
East, Ito-Yokado Building

End of 1st FP End of 2nd FP End of 3rd FP End of 4th FP End of 5th FP End of 6th FP End of 7th FP End of 8th FP End of 9th FP End of 10th FP End of 11th FP End of 12th FP End of 13th FP End of 14th FP End of 15th FP End of 16th FP As of date of(Mar. 31, 2006) (Sep. 30, 2006) (Mar. 31, 2007) (Sep. 30, 2007) (Mar. 31, 2008) (Sep. 30, 2008) (Mar. 31, 2009) (Sep. 30, 2009) (Mar. 31, 2010) (Sep. 30, 2010) (Mar. 31, 2011) (Sep. 30, 2011) (Mar. 31, 2012) (Sep. 30, 2012) (Mar. 31, 2013) (Sep. 30, 2013) document

Unitholders’capital¥27,473
million¥28,491
million¥42,297
million¥48,704
million¥50,523
million¥57,755
million¥68,294
millionNumber ofinvestment units

54,000units

56,000units

86,000units

104,670
units

115,070
units

137,070
units

159,605
units

Total interestbearing debt
(Note 2)―

¥23,165
million¥34,724
million¥42,382
million¥43,090
million¥44,523
million¥52,181
million¥51,639
million¥51,449
million¥51,208
million¥49,229
million¥51,874
million¥54,032
million¥58,073
million¥59,503
million¥71,434
million¥75,975
million¥79,275
millionLTV (Note 3)

―

41.7%

51.7%

47.3%

47.7%

45.2%

49.3%

49.3%

49.0%

48.9%

47.1%

48.3%

49.3%

51.5%

52.1%

53.4%

51.0％

-

Cash
distribution perunit (Note 4)―¥17,277(¥12,730)¥12,995¥13,035¥13,023¥14,402¥11,147¥5,485¥10,262¥10,052¥8,160¥9,793¥10,045¥10,117¥10,351¥10,459

10,537円-

Notes: 1. With regard to Bell Plaza Shopping Center acquired in the fiscal period ended March 31, 2008, the former waterway on site, adjacent signboards and the site itself were additionally acquired at a total of ¥1 million during the fiscal period ended September 30, 2009. Also, the building additionally built on
the site was additionally acquired on June 29, 2012 for ¥18 million.
2. Total interest-bearing debt = Loans payable + Investment corporation bonds + Interest-bearing tenant leasehold and security deposits
3. LTV = Period-end interest-bearing debt / Period-end total assets
4. The operating period for the first fiscal period was the 346 days between April 20, 2005 and March 31, 2006. The actual management period was the 247 days between July 28, 2005 and March 31, 2006. In order to compare with the successive fiscal periods, the figure calculated with the number ofmanagement days as 182 is indicated in parentheses.

38Portfolio Development Policy
Diversified Investment
Limited core assets to “residences,” clarified that “management-type residences (Note)” are included in residences and expanded the focused investment areas for
Note: Management-type residences are facilities operated by dedicated management companies and providing general services (student
residences in the Greater Tokyo area.
dorms, serviced housing for the elderly, pay nursing homes, etc.)

Allocation rate by asset
class

Diversified investment by asset classSpecific area
①TokyoWork toward external growth based on high-quality
rental housing properties developed by Sekisui House,the main sponsor, and aim to construct a portfolio
centering on residences

Greater Tokyo /Major Urban Areas(Focused
investment area)

For retail facilities, focus on stable management of
currently owned properties

80%~100%Core
assetsResidences

Diversified investment by regionAllocation rate by region

Of this,management
type residences:

Greater Tokyo /Other Urban Areas

0%~10%

Make Greater Tokyo / Major Urban Areas the focusedinvestment area of the portfolio

Major Regional
Cities Fully utilize the nationwide network of the Sekisui HouseGroup and also conduct diversified investments in otherinvestment areas with careful selection

Balance
assetsRetailfacilities,etc.

0%~20%

23 wards,
Musashinoshi, Mitaka-shi,
Koganei-shi

About 70%
②Kanagawa

Yokohama-shi,
Kawasaki-shi① Tokyo areas (except islands)
Together withand Kanagawa other than the
Greater Tokyoabove/ Major Urban② Chiba, Saitama
Areas③ Additional areas within
about 80%
commuting distance

About 20%

① Sapporo-shi, Sendai-shi,
Nagoya-shi, Kyoto-shi, Osakashi, Kobe-shi, Hiroshima-shi,
Fukuoka-shi, etc.
② Additional areas withincommuting distanceBased on an assessment of the specific characteristics of each
property, region and trade zone
Note: About means ±10%

Residence TypeWith regard to the types of rental housing that will be targets of investment, investment will be made in a wide range of rental housing types in order to respond tothe various needs of residents.

Single / Compact

FamilyLarge

Had already been positioned as a maininvestment target

Properties that are expected to have stable profitability
considering their area’s characteristics will be included as
main investment target

Invest selectively after carefully analyzing
the location’s environment, etc.

Participate in the Sekisui House’s development
department’s planning and development meetingas an observer

Sekisui House has extensive performance indevelopment

First acquisition of its kind throughpublic offering in 16th FP
39

Portfolio Map (1)As of date of document

Residence (property number)
Retail Properties (property number)

Osaka City
Greater Tokyo / Major Urban Areas
Adachi-ku

Itabashi-ku
Kita-ku

Nerima-ku
Arakawa-ku
Musashino
City
Koganei City Mitaka City

Fukuoka City

Nakanoku

ToshimaTaito-ku
ku
Bunkyo-ku

Katsushika-ku
Sumida-ku

Edogawaku

Shinjuku-ku

Suginamiku
Shibuya-ku

Chiyoda-ku
Chuo-ku

Koto-ku

Minato-ku
Setagaya-ku

Meguro-ku
Shinagawa-ku

KawasakiCity

Ota-kuYokohama
City

Greater Tokyo / Other Urban Areas
Nagoya CityTokyo

Kanagawa

40

Portfolio Map (2)Greater Tokyo / Major Urban Areas
Residence

Residence
Residence-1

Esty Maison GINZA

Residence-3

Esty Maison AZABUNAGASAKA

Residence-4

Esty Maison EBISU II

Residence-5

Esty Maison EBISU

Greater Tokyo / Other Urban Areas
Residence-11 Esty Maison MACHIDA

Residence-13 Esty Maison IMAIKE

Residence-62 Esty Maison AKIHABARA

Residence-18 Esty Maison YACHIYOMIDORIGAOKA

Residence-20 Esty Maison KYOBASHI

Residence-63 Esty Maison SASAZUKA

Residence-40 Esty Maison HACHIOJIMINAMINO

Residence-23 Esty Maison MINAMIHORIE

Residence-50 Prime Maison MUSASHINONOMORI

Residence-28 Esty Maison JYOUTOU

Residence-6

Esty Maison KANDA

Residence-7

Esty Maison SENDAGAYA

Residence-69 Esty Maison SENGOKU

Residence-8

Esty Maison KITASHINJUKURetail Properties

Residence-70 Esty Maison DAIZAWA

Retail-5

KOJIMA NEW KAMIFUKUOKATENResidence-71 Esty Maison TOGOSHI

Retail-8

Joy Square YUGAWARA

Residence-10 Esty Maison ASAKUSAKOMAGATA

Residence-14 Esty Maison SHINKAWASAKI

Residence-74 Esty Maison SHIROKANEDAI

Residence-15 Esty Maison YOKOHAMA

Residence-75 Esty Maison HIGASHISHINJUKUResidence-16 Esty Maison KAMEIDO

Residence-76 Esty Maison MOTOAZABUResidence-17 Esty Maison MEGURO
Residence-19 Esty Maison SUGAMO

Residence-77 Esty Maison TORITSUDAIGAKU

Residence-21 Esty Maison MEGUROHONCHO

Residence-78 Esty Maison MUSASHIKOYAMA II

Residence-22 Esty Maison HAKURAKU

Residence-79 Esty Maison NAKANO

Residence-24 Esty Maison GOTANDA

Residence-80 Esty Maison SHINNAKANO

Residence-25 Esty Maison OISENDAIZAKA

Residence-46 Esty Maison HAKATAHIGASHI
Residence-47 Esty Maison KAMIGOFUKUResidence-58 Prime Maison GOKISO
Residence-59 Prime Maison YUHIGAOKA
Residence-60 Prime Maison KITATANABE
Residence-85 Esty Maison AKABANE

Residence-34 Esty Maison OIZUMIGAKUEN
Residence-86 Esty Maison OJI

Residence-61 Prime Maison MOMOCHIHAMAResidence-65 Prime Maison TAKAMI
Residence-66 Prime Maison YADAMINAMI

Residence-42 Esty Maison ITABASHIKUYAKUSHOMAE

Retail Properties
Residence-67 Prime Maison TERIHA
Retail-2

b-town JINGUMAE II

Retail-4

b-town MINAMIAOYAMA

Retail-7

b-toss IKEBUKURO

Residence-44 Esty Maison SENDAGIResidence-48 Esty Maison SANGENJAYAResidence-41 Esty Maison NISHINAKAJIMA

Residence-82 Esty Maison TETSUGAKUDO

Residence-84 Esty Maison OSHIAGE

Residence-45 Esty Maison YOTSUYASAKAMACHI

Residence-37 Esty Maison SHIJONISHINOTOIN

Residence-55 MAST HAKATA

Residence-31 Esty Maison AZABUJUBAN

Residence-43 Esty Maison MUSASHIKOYAMA

Residence-36 Esty Maison TENJINHIGASHI II

Residence-81 Esty Maison NAKANOFUJIMICHO

Residence-83 Esty Maison KOENJI

Residence-39 Esty Maison HIGASHISHINAGAWA

Residence-35 Esty Maison TENJINHIGASHI I

Residence-52 Prime Maison KAYABAKOEN

Residence-30 Esty Maison KAWASAKI II

Residence-33 Esty Maison ITABASHIHONCHO

Residence-29 Esty Maison TSUKAMOTO

Residence-51 Prime Maison HIGASHISAKURA

Residence-26 Esty Maison SHINAGAWA SEASIDE
Residence-27 Esty Maison MINAMIAZABUResidence

Residence

Residence-57 Esty Maison MUSASHIKOGANEIResidence-64 Prime Maison GINZA EAST

Residence-12 Esty Maison KAWASAKI

Major Regional Cities

Residence-68 Esty Maison HIGASHISHIRAKABE
Residence-72 Esty Maison KAWARAMACHI
Residence-73 Esty Maison NISHITENMA

Residence-53 Esty Maison SANGENJAYA II

Retail Properties

Residence-54 Esty Maison ITABASHI C6Residence-56 Esty Maison KINSHICHO

Properties acquired as of October 1, 2013

Residence
Residence-87 Prime Maison WASEDA

Retail-1

HAMAMATSU Plaza

Retail-3

RINKU HAGURAZAKI Plaza

Retail-9

Bell Plaza Shopping Center

Residence-88 Prime Maison HATCHOBORIResidence-89 Prime Maison JINBOCHO
Residence-90 Prime Maison GOTENYAMA EAST

41

Status of Portfolio ~Residence~Primary Properties Owned
Greater Tokyo / Major Urban Areas
Esty Maison
GINZA

Esty Maison
OISENDAIZAKA

Esty Maison
YOKOHAMA
エスティメゾン横浜

Greater Tokyo / Other Urban Areas
Esty Maison MACHIDA

Prime Maison MUSASHINONOMORI

Prime Maison
GINZA EAST

Esty Maison
SENGOKU

Major Regional Cities
Prime Maison
HIGASHISAKURAMASTHAKATA

42

Status of Portfolio ~Retail Properties~
Remaining Contract Period

Greater Tokyo / Major Urban Areas

10 years or more

18.3%
Less than 3 years
5 years
to less
17.6%
than 10
years

0.8%

3 years toless than 5
years

Properties Owned

b-town JINGUMAE II

b-town MINAMIAOYAMA

b-tossIKEBUKURO

63.4%

Weighted average ofremaining years
4.2 years

As of end of fiscal period ended
September 30, 2013 (16th fiscal period)

Greater Tokyo / Other Urban Areas
KOJIMA NEW
KAMIFUKUOKATEN

Joy Square YUGAWARA

Major Regional Cities
HAMAMATSU PlazaRINKU HAGURAZAKI
Plaza

Bell Plaza Shopping Center

Note: The weighted average of remaining years is based on tenant lease agreements effective as of the end of the fiscal period ended September 30, 2013 (16th fiscal period) and calculated by seeking the weighted
average with the highest shop rent (excluding sales rent) during the lease period, and are rounded down to the nearest first decimal place.

43

List of Properties Owned at End of Period (1)Acquisition Price
Property No.

Property Name

Location

Site Area (m2)

Total Floor
Area (m2)Price(Million yen)

Ratio
(%)

Appraisal
Value at End of
Period(Million yen)

As of Mar.
31, 2013

Occupancy Rate (%)
As of Sep.
30, 2013

Completion Date

Residence-1

Esty Maison GINZA

Ginza, Chuo-ku, Tokyo

636.36

7,836.57

5,290

3.7

5,530

98.2

96.3 February 7, 2005

Residence-3

Esty Maison AZABUNAGASAKA

Roppongi, Minato-ku, Tokyo

677.452,317.87

1,730

1.2

1,560

94.1

96.5 January 16, 2004

Residence-4

Esty Maison EBISU II

Higashi, Shibuya-ku, Tokyo

561.582,452.69

1,960

1.4

1,750

88.1

91.7 June 13, 2003

Residence-5

Esty Maison EBISU

Hiroo, Shibuya-ku, Tokyo

169.00871.90

700

0.5

759

92.1

100.0 October 20, 2004

Residence-6

Esty Maison KANDA

Kandata-cho, Chiyoda-ku, Tokyo

307.692,028.19

1,360

1.0

1,330

100.0

100.0 February 20, 2004

Residence-7

Esty Maison SENDAGAYA

Daikyo-cho, Shinjuku-ku, Tokyo

340.49844.13

576

0.4

529

90.6

94.1 August 31, 2004

Residence-8

Esty Maison KITASHINJUKU

Kita-shinjuku, Shinjuku-ku, Tokyo

504.412,204.07

1,290

0.9

1,410

97.1

90.0 August 6, 2004

Residence-10

Esty Maison ASAKUSAKOMAGATA

Komagata, Taito-ku, Tokyo

663.54

3,406.10

1,870

1.3

1,880

94.3

96.9 July 28, 2004

Residence-11

Esty Maison MACHIDA

Hara-machida, Machida-shi, Tokyo

587.484,033.59

1,360

1.0

1,400

93.4

94.9 February 23, 2004

Residence-12

Esty Maison KAWASAKI

Ogawa-cho, Kawasaki-ku, Kawasaki-shi,
Kanagawa

683.694,656.10

2,130

1.5

2,240

98.7

95.4 July 15, 2004

Residence-13

Esty Maison IMAIKE

Imaike, Chikusa-ku, Nagoya-shi, Aichi

360.54

1,375.76

300

0.2

197

93.0

100.0 October 15, 1991

Residence-14

Esty Maison SHINKAWASAKI

Furuichiba, Saiwai-ku, Kawasaki-shi,
Kanagawa

1,992.09

3,737.47

1,018

0.7

1,070

100.0

100.0 March 5, 1999

Residence-15

Esty Maison YOKOHAMA

Tsuruya-cho, Kanagawa-ku, Yokohama-shi,
Kanagawa

611.41

3,076.45

2,090

1.5

1,980

100.0

100.0 January 23, 2007

Residence-16

Esty Maison KAMEIDO

Kameido, Koto-ku, Tokyo

438.432,899.67

1,650

1.2

1,360

100.0

99.0 November 30, 2005

Residence-17

Esty Maison MEGURO

Mita, Meguro-ku, Tokyo

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

Midorigaoka, Yachiyo-shi, Chiba

Residence-19

Esty Maison SUGAMO

Residence-20

578.01

1,283.92

887

0.6

953

97.5

90.5 November 28, 2005

1,289.14

5,420.53

1,348

1.0

1,110

95.3

95.1 January 10, 1998

Sugamo, Toshima-ku, Tokyo

965.702,785.83

1,510

1.1

1,420

95.0

100.0 February 22, 2007

Esty Maison KYOBASHI

Higashinoda-cho, Miyakojima-ku, Osaka-shi,
Osaka

799.685,995.82

2,774

2.0

2,670

98.9

96.7 March 2, 2006

Residence-21

Esty Maison MEGUROHONCHO

Megurohoncho, Meguro-ku, Tokyo

865.22

1,975.84

1,220

0.9

995

93.8

96.9 February 22, 2006

Residence-22

Esty Maison HAKURAKU

Rokkakubashi, Kanagawa-ku, Yokohamashi, Kanagawa

457.54

1,593.68

844

0.6

825

98.2

96.5 February 2, 2006

Residence-23

Esty Maison MINAMIHORIE

Minamihorie, Nishi-ku, Osaka-shi, Osaka

475.06

1,994.14

1,055

0.7

963

96.8

98.4 February 19, 2007

Residence-24

Esty Maison GOTANDA (Note 5)

Nishi-gotanda, Shinagawa-ku, Tokyo

593.325,590.34

3,043

2.2

2,670

98.5

98.4 March 2, 2006

Residence-25

Esty Maison OISENDAIZAKA

Higashi-oi, Shinagawa-ku, Tokyo

558.393,440.73

2,440

1.7

2,370

95.5

95.8 August 10, 2006

Residence-26

Esty Maison SHINAGAWA SEASIDE

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,049.00

3,127.48

2,200

1.6

2,010

96.7

93.6 June 23, 2006

Residence-27

Esty Maison MINAMIAZABUMinamiazabu, Minato-ku, Tokyo

487.27

1,479.61

1,300

0.9

1,150

100.0

94.2 August 23, 2006

Residence-28

Esty Maison JYOUTOU

Noe, Jyoutou-ku, Osaka-shi, Osaka

740.492,232.26

1,075

0.8

926

100.0

97.0 August 31, 2006

Residence-29

Esty Maison TSUKAMOTO

Tsukamoto, Yodogawa-ku, Osaka-shi,
Osaka

808.542,565.66

1,250

0.9

1,060

100.0

100.0 August 10, 2006

Residence-30

Esty Maison KAWASAKI II

Ogawa-cho, Kawasaki-ku, Kawasaki-shi,
Kanagawa

601.383,193.14

1,900

1.3

1,900

98.4

97.0 February 27, 2007

44

List of Properties Owned at End of Period (2)Acquisition Price
Location

Site Area (m2)

Total Floor
Area (m2)Property No.

Property Name

Residence-31

Esty Maison AZABUJUBAN

Azabujuban, Minato-ku, Tokyo

380.26

2,097.45

2,700

1.9

Residence-33

Esty Maison ITABASHIHONCHO

Yamato-cho, Itabashi-ku, Tokyo

220.85

1,446.78

1,000

0.7

Residence-34

Esty Maison OIZUMIGAKUEN

Higashi-Oizumi, Nerima-ku, Tokyo

618.001,542.16

871

Residence-35

Esty Maison TENJINHIGASHI I

Susaki-machi, Hakata-ku, Fukuoka-shi,
Fukuoka

239.18

1,158.70

Residence-36

Esty Maison TENJINHIGASHI II

Susaki-machi, Hakata-ku, Fukuoka-shi,
Fukuoka

514.89Residence-37

Esty Maison SHIJONISHINOTOIN

Myodenji-cho, Shijo-sagaru, Nishinotoindori, Shimogyo-ku, Kyoto-shi, Kyoto

Residence-39

Esty Maison HIGASHISHINAGAWA

Residence-40

Price(Million yen)

Ratio
(%)

Appraisal
Value at End of
Period(Million yen)Occupancy Rate (%)
Completion Date

As of Mar.
31, 2013

As of Sep.
30, 2013

2,360

98.8

94.7

February 22, 2007

878

100.0

90.7

February 27, 2007

0.6

774

98.3

92.8

February 22, 2007

445

0.3

364

100.0

95.0

January 31, 2007

2,108.69

840

0.6

674

98.8

97.5

May 23, 2007

400.593,374.74

1,420

1.0

1,040

93.3

96.7

April 8, 2008

Higashi-Shinagawa, Shinagawa-ku,
Tokyo

1,028.92

3,338.12

2,610

1.8

2,250

94.5

96.4

May 23, 2008

Esty Maison HACHIOJIMINAMINO

Nishikatakura, Hachioji-shi, Tokyo

1,134.50

2,243.06

1,000

0.7

946

88.4

93.0

March 6, 2007

Residence-41

Esty Maison NISHINAKAJIMA

Higashinakajima, Higashiyodogawa-ku,
Osaka-shi, Osaka

969.02

3,947.24

2,250

1.6

1,870

98.5

96.2

April 18, 2007

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

Itabashi, Itabashi-ku, Tokyo

731.71

4,322.19

2,700

1.9

2,350

96.8

89.5

April 22, 2007

Residence-43

Esty Maison MUSASHIKOYAMA (Note 5)

Ebara, Shinagawa-ku, Tokyo

512.62

1,616.87

1,012

0.7

946

97.4

96.1

November 5, 2007

Residence-44

Esty Maison SENDAGI (Note 5)

Sendagi, Bunkyo-ku, Tokyo

250.44

1,239.10

757

0.5

641

100.0

93.2

January 9, 2008

Residence-45

Esty Maison YOTSUYASAKAMACHI(Note 5)

Sakamachi, Shinjuku-ku, Tokyo

905.083,675.01

2,300

1.6

1,820

95.8

94.4

March 29, 2008

Residence-46

Esty Maison HAKATAHIGASHI

Yoshizuka, Hakata-ku, Fukuoka-shi,
Fukuoka

4,590.91

9,465.09

2,250

1.6

2,240

96.7

96.8

November 21, 2007

Residence-47

Esty Maison KAMIGOFUKUKamigofukumachi, Hakata-ku, Fukuokashi, Fukuoka

593.552,523.71

900

0.6

790

100.0

97.3

March 14, 2008

Residence-48

Esty Maison SANGENJAYASangenjaya, Setagaya-ku, Tokyo

153.83954.94

871

0.6

789

100.0

91.7

January 22, 2008

Residence-50

Prime Maison MUSASHINONOMORI

Josuihoncho, Kodaira-shi, Tokyo

5,116.62

4,412.42

1,560

1.1

1,750

95.8

91.7

December 19, 2007

Residence-51

Prime Maison HIGASHISAKURA

Higashisakura, Higashi-ku, Nagoya-shi,
Aichi

846.053,517.62

1,140

0.8

1,290

100.0

98.7

February 15, 2008

Residence-52

Prime Maison KAYABAKOEN

Kayaba, Chikusa-ku, Nagoya-shi, Aichi

1,129.02

2,301.42

640

0.5

707

96.3

96.3

November 7, 2006

Residence-53

Esty Maison SANGENJAYA II

Shimouma, Setagaya-ku, Tokyo

473.85

1,006.89

714

0.5

771

100.0

100.0

January 28, 2008

Residence-54

Esty Maison ITABASHI C6Oyama-higashi-cho, Itabashi-ku, Tokyo

773.485,249.34

2,260

1.6

2,300

98.2

94.3

March 12, 2008

Residence-55

MAST HAKATA (Note 6)

Hakata Ekimae, Hakata-ku, Fukuoka-shi,
Fukuoka

2,457.01

11,621.67

1,920

1.4

2,150

100.0

100.0

January 15, 2005

Residence-56

Esty Maison KINSHICHO

Kinshi, Sumida-ku, Tokyo

338.57

1,718.10

1,050

0.7

1,150

97.2

97.3

September 6, 2006

Residence-57

Esty Maison MUSASHIKOGANEI

Honcho, Koganei-shi, Tokyo

520.252,676.36

1,450

1.0

1,590

97.1

98.1

February 2, 2005

Residence-58

Prime Maison GOKISO

Ayuchitori, Showa-ku, Nagoya-shi, Aichi

1,429.67

4,691.72

1,640

1.2

1,710

96.5

95.2

October 28, 2008

Residence-59

Prime Maison YUHIGAOKA

Ueshio, Tennoji-ku, Osaka-shi, Osaka

547.152,336.49

810

0.6

844

84.6

95.9

February 16, 2007

Prime Maison KITATANABE

Kitatanabe, Higashisumiyoshi-ku, Osakashi, Osaka

640.92

2,112.46

540

0.4

543

100.0

92.0

June 13, 2006

Residence-60

45

List of Properties Owned at End of Period (3)Acquisition Price
Property No.

Property Name

Location

Residence-61

Prime Maison MOMOCHIHAMA

Momochihama, Sawara-ku Fukuoka-shi,
FukuokaResidence-62

Esty Maison AKIHABARA

Residence-63

Site Area (m2)

Total Floor
Area (m2)Price(Million yen)

Ratio
(%)

Occupancy Rate (%)

Appraisal
Value at End of
Period(Million yen)

As of Mar.
31, 2013

As of Sep.
30, 2013

Completion Date

4,069.42

8,945.61

1,810

1.3

1,890

100.0

100.0

February 29, 1996

Ueno, Taito-ku, Tokyo

458.322,821.47

1,560

1.1

1,700

100.0

93.7

February 24, 2006

Esty Maison SASAZUKA

Sasazuka, Shibuya-ku, Tokyo

909.33

4,263.10

2,830

2.0

2,910

97.5

94.6

September 7, 2004

Residence-64

Prime Maison GINZA EAST

Tsukiji, Chuo-ku, Tokyo

969.108,724.48

5,205

3.7

5,370

93.6

92.5

February 28, 2006

Residence-65

Prime Maison TAKAMI

Takami, Chikusa-ku, Nagoya-shi, Aichi

1,129.17

2,354.34

905

0.6

945

89.7

96.4

August 27, 2008

Residence-66

Prime Maison YADAMINAMI

Yadaminami, Higashi-ku, Nagoya-shi, Aichi

1,148.53

2,430.23

715

0.5

740

91.9

91.5

July 18, 2007

Residence-67

Prime Maison TERIHA

Kashiiteriha, Higashi-ku, Fukuoka-shi,
Fukuoka

4,130.59

7,953.60

1,110

0.8

1,180

100.0

100.0

August 31, 2005

Residence-68

Esty Maison HIGASHISHIRAKABE

Yoshino, Higashi-ku, Nagoya-shi, Aichi

1,959.76

4,232.39

1,350

1.0

1,400

100.0

100.0

February 27, 2006

Residence-69

Esty Maison SENGOKU

Sengoku, Bunkyo-ku, Tokyo

1,002.14

2,068.21

1,075

0.8

1,150

100.0

95.1

August 6, 2009

Residence-70

Esty Maison DAIZAWA

Daizawa, Setagaya-ku, Tokyo

1,901.36

2,948.98

1,870

1.3

1,910

93.3

97.8

February 18, 2010

Residence-71

Esty Maison TOGOSHI

Togoshi, Shinagawa-ku, Tokyo

679.82

2,545.90

1,370

1.0

1,450

97.9

96.8

June 25, 2009

Residence-72

Esty Maison KAWARAMACHI

Kawaramachi, Chuo-ku, Osaka-shi, Osaka

655.894,580.48

1,640

1.2

1,760

95.7

94.2

October 17, 2006

Residence-73

Esty Maison NISHITENMA

Nishitenma, Kita-ku, Osaka-shi, Osaka

519.65

4,514.05

1,440

1.0

1,550

87.1

92.6

November 30, 2007

Residence-74

Esty Maison SHIROKANEDAI

Kamiosaki, Shinagawa-ku, Tokyo

1,279.67

2,797.66

1,900

1.3

2,130

86.5

92.3

September 16, 2003

Residence-75

Esty Maison HIGASHISHINJUKU

Shinjuku, Shinjuku-ku, Tokyo

704.82

2,227.87

1,370

1.0

1,450

-

95.5

April 17, 2009

Residence-76

Esty Maison MOTOAZABU

Motoazabu, Minato-ku, Tokyo

755.991,699.44

1,170

0.8

1,230

-

87.5

November 9, 2009

Residence-77

Esty Maison TORITSUDAIGAKU

Tairamachi, Meguro-ku, Tokyo

766.84

1,399.75

729

0.5

783

-

89.6

February 23, 2009

Residence-78

Esty Maison MUSASHIKOYAMA II

Koyama, Shinagawa-ku, Tokyo

609.81

1,436.58

844

0.6

884

-

97.4

May 25, 2009

Residence-79

Esty Maison NAKANO

Chuo, Nakano-ku, Tokyo

687.472,608.04

1,540

1.1

1,620

-

96.6

June 24, 2009

Residence-80

Esty Maison SHINNAKANO

Honcho, Nakano-ku, Tokyo

747.64

1,508.07

847

0.6

896

-

97.8

October 22, 2009

Residence-81

Esty Maison NAKANOFUJIMICHO

Yayoicho, Nakano-ku, Tokyo

907.66

1,531.56

863

0.6

916

-

84.6

February 16, 2009

1,858.00

954

0.7

97.9

October 21, 2009

Residence-82

Esty Maison TETSUGAKUDO

Matsugaoka, Nakano-ku, Tokyo

686.93

1,070-

Residence-83

Esty Maison KOENJI

Koenjiminami, Suginami-ku, Tokyo

1,100.15

1,977.24

958

0.7

1,050

-

98.5

March 10, 2009

Residence-84

Esty Maison OSHIAGE

Narihira, Sumida-ku, Tokyo

1,134.70

4,344.84

1,950

1.4

2,120

-

96.8

April 23, 2010

Residence-85

Esty Maison AKABANE

Akabane, Kita-ku, Tokyo

1,157.02

5,675.18

2,730

1.9

2,830

-

94.1

November 25, 2009

Residence-86

Esty Maison OJI

Oji, Kita-ku, Tokyo

518.872,939.76

1,380

1.0

1,430

-

95.5

July 6, 2010

76,910.49

261,504.71

123,935

87.6

121,918

96.8

96.1

Residence Subtotal

46

List of Properties Owned at End of Period (4)Acquisition Price
Property
No.

Property Name

Location

Retail-1

HAMAMATSU Plaza (Note 7)

Kaminishi-cho, Higashi-ku, Hamamatsu-shi,
Shizuoka, etc.

Retail-2

b-town JINGUMAE II

Jingumae, Shibuya-ku, Tokyo

Site Area (m2)

Total Floor
Area (m2)Price(Million yen)

Ratio
(%)

Occupancy Rate (%)

Appraisal
Value at End of
Period(Million yen)

As of Mar.
31, 2013

As of Sep.
30, 2013

73,937.28

11,229.79

3,820

2.7

2,239

100.0

100.0

283.83499.67

1,043

0.7

927

100.0

100.0

Completion Date

(Note 7)
May 20, 2005－

Retail-3

RINKU HAGURAZAKI Plaza (Note 8)

Tajiri-cho, Sennan-gun, Osaka, etc.

53,231.66

-

4,697

3.3

4,390

100.0

100.0

Retail-4

b-town MINAMIAOYAMAMinamiaoyama, Minato-ku, Tokyo

385.32797.63

1,530

1.1

1,140

100.0

100.0

February 28, 2006

Retail-5

KOJIMA NEW KAMIFUKUOKATEN

Kamifukuoka, Fujimino-shi, Saitama

4,877.90

3,413.40

1,300

0.9

1,190

100.0

100.0

October 14, 1996

Retail-7

b-toss IKEBUKURO

Nishi-Ikebukuro, Toshima-ku, Tokyo

223.381,474.21

1,980

1.4

1,580

66.3

77.5

November 12, 2005

Retail-8

Joy Square YUGAWARA

Chuo, Yugawaramachi, Ashigarashimo-gun,
Kanagawa

5,425.13

6,326.53

1,810

1.3

1,520

100.0

100.0

September 22, 2006

23,304.57

6,283.76

1,355(Note 9)

1.0

1,190

100.0

100.0

Retail Subtotal

161,669.07

30,024.99

17,53612.4

14,176

99.6

99.6

Portfolio Total

238,579.56

291,529.70

141,472100.0

136,094

97.7

97.1

Retail-9

Bell Plaza Shopping Center

Nakamaruko, Ueda-shi, Nagano

Owned as of September 30, 2013 (end of 16th fiscal period)
Acquired on October 1, 2013 (17th fiscal period)
Owned as of the date of this document (November 15, 2013)89 properties

141,472 million yen

4 properties

6,200 million yen

93 properties

147,672 million yen(Note 9)Notes: 1. Based on information as of September 30, 2013. Occupancy rates are rounded to the nearest first decimal place.
2. Concerning acquisition prices, amounts of less than one million yen are rounded down, and percentages indicate the portion of the portfolio’s total acquisition price for properties owned and are rounded to thenearest first decimal place.
3. The listed site area, total floor area figures and completion dates are based on indications given in the register.
4. The appraisal value at end of period is the amount appraised based on an appraisal by a real estate appraiser or on real estate survey price rounded down to the nearest million yen.
5. The ratio of site rights (co-ownership rights) for Esty Maison GOTANDA, Esty Maison MUSASHIKOYAMA, Esty Maison SENDAGI and Esty Maison YOTSUYASAKAMACHI are 387,036/426,933,
117,678/127,609, 89,730/103,842 and 245,317/329,739, respectively. However, “Site Area” indicates the total land area of the real estate in trust, while “Total Floor Area” indicates the floor area of the entire
building. The exclusive portions of the total floor area that the Investment Corporation has acquired are 3,637.18m2, 1,148.58m2, 867.27m2 and 2,253.07m2, respectively.
6. MAST HAKATA is a leasehold property with a general fixed-term land leasehold of a 50 year lease period which began on December 1, 2002, with the Urban Renaissance Agency as the land owner. As such,
its “site area” is that which is indicated in the land leasehold agreement.
7. Hamamatsu Plaza is a commercial complex divided into the Hamamatsu Plaza East area and the Hamamatsu Plaza West area, comprises a total of seven buildings, with five buildings located in the
Hamamatsu Plaza East area (the Ito-Yokado building, the Akachan Honpo building, the Xebio building, the Hamapla & Frespo building, and a management building) and two buildings located in the
Hamamatsu Plaza West area (the Hamamatsu West building and the Hamamatsu Plaza Sports building (Zexis)). The Investment Corporation acquired trust beneficiary interests in real estate for these otherthan the Hamapla & Frespo building and the building of the Hamamatsu Plaza Sports building (Zexis) on July 28, 2005 and started operations, but a portion was assigned on March 30, 2012 and September
30, 2013. As of September 30, 2013, the Investment Corporation holds only a 49% quasi-co-ownership interest in the real estate trust beneficial interest of Hamamatsu Plaza East excluding the Ito-Yokadobuilding and its site (hereafter, the “Hamamatsu Plaza East Xebio Building and Other Portions”). However, for the “site area” and “total floor area,” those for the entire Hamamatsu Plaza East Xebio Building
and Other Portions are indicated. In addition, the HAMAPLA Frespo Building is not included in the “total floor space” because only the land is owned and leased (the buildings on it are owned by the tenants).
The “acquisition price” and “appraisal value at end of period” are for the 49% quasi-co-ownership interest of the Hamamatsu Plaza East Xebio Building and Other Portions, and do not include the assigned
portion. With regard to “completion date” the management building was completed on November 7, 2000, and Akachan Honpo Building and XEBIO Building were completed on November 9, 2000. The“completion date” of HAMAPLA Frespo Building is not indicated, however, because the buildings on the land are owned by the tenants.
8. As for Rinku Hagurazaki Plaza, its “total floor area” and “completion date” are not indicated because only the land is owned and leased (the buildings on it are owned by the tenants).
9. With regard to Bell Plaza Shopping Center acquired in the fiscal period ended March 31, 2008, the former waterway on site, adjacent signboards and the site itself were additionally acquired at a total of ¥1
million during the fiscal period ended September 30, 2009. Also, the building additionally built on the site was additionally acquired on June 29, 2012 for ¥18 million. Bell-Plaza Shopping Center is commercial
complex, with the center building and shop building completed on November 30, 1992, the restaurant building completed on July 12, 2006 and the separate crystal plaza building completed on June 26, 2012.

47

List of Period-End Estimated Values (1)Property No.

Property Name

Acquisition Price(million yen)

Period-end estimated value(million yen)
As of Mar. 31,
2013

Direct capitalization rate (%)

As of Sep. 30,
2013

Change(million yen)

As of Mar. 31,
2013

Discount rate (%)

As of Sep. 30,
2013

As of Mar. 31,
2013

Terminal capitalization rate (%)

As of Sep. 30,
2013

As of Mar. 31,
2013

As of Sep. 30,
2013

Residence-1

Esty Maison GINZA

5,290

5,300

5,530

230

4.8

4.7

5.0

4.9

5.1

4.9

Residence-3

Esty Maison AZABUNAGASAKA

1,730

1,520

1,560

40

4.9

4.8

5.0

4.9

5.2

5.0

Residence-4

Esty Maison EBISU II

1,960

1,740

1,750

10

4.9

4.9

5.0

5.0

5.2

5.1

Residence-5

Esty Maison EBISU

700

738

759

21

4.8

4.7

4.9

4.8

5.1

4.9

Residence-6

Esty Maison KANDA

1,360

1,280

1,330

50

4.9

4.8

5.0

4.9

5.2

5.0

Residence-7

Esty Maison SENDAGAYA

576

518

529

11

5.1

5.0

5.2

5.1

5.4

5.2

Residence-8

Esty Maison KITASHINJUKU

1,290

1,380

1,410

30

5.1

5.0

5.1

5.0

5.4

5.2

Residence-10

Esty Maison ASAKUSAKOMAGATA

1,870

1,850

1,880

30

5.1

5.0

5.1

5.0

5.4

5.2

Residence-11

Esty Maison MACHIDA

1,360

1,370

1,400

30

5.6

5.5

5.5

5.4

5.9

5.7

Residence-12

Esty Maison KAWASAKI

2,130

2,180

2,240

60

5.3

5.2

5.3

5.2

5.6

5.4

Residence-13

Esty Maison IMAIKE

300

196

197

1

6.5

6.4

5.8

5.8

6.8

6.6

Residence-14

Esty Maison SHINKAWASAKI

1,018

999

1,070

71

5.9

5.8

4.6

4.5

6.2

6.1

Residence-15

Esty Maison YOKOHAMA

2,090

1,930

1,980

50

5.4

5.3

5.2

5.1

5.6

5.5

Residence-16

Esty Maison KAMEIDO

1,650

1,440

1,360

-80

5.5

5.3

5.3

5.1

5.7

5.5

Residence-17

Esty Maison MEGURO

887

989

953

-36

5.0

4.9

4.8

4.7

5.2

5.1

Residence-18

Esty Maison
YACHIYOMIDORIGAOKA

1,348

1,100

1,110

10

5.7

5.7

5.6

5.6

5.8

5.8

Residence-19

Esty Maison SUGAMO

1,510

1,410

1,420

10

5.0

4.9

4.7

4.6

5.3

5.2

Residence-20

Esty Maison KYOBASHI

2,774

2,660

2,670

10

5.5

5.5

5.4

5.4

5.6

5.6

Residence-21

Esty Maison MEGUROHONCHO

1,220

969

995

26

5.1

5.0

4.9

4.8

5.3

5.2

Residence-22

Esty Maison HAKURAKU

844

812

825

13

5.5

5.4

5.3

5.2

5.7

5.6

Residence-23

Esty Maison MINAMIHORIE

1,055

951

963

12

5.5

5.4

5.2

5.1

5.8

5.7

Residence-24

Esty Maison GOTANDA

3,043

2,620

2,670

50

5.3

5.2

5.0

4.9

5.5

5.4

Residence-25

Esty Maison OISENDAIZAKA

2,440

2,340

2,370

30

5.1

5.0

4.9

4.8

5.3

5.2

Residence-26

Esty Maison SHINAGAWA SEASIDE

2,200

1,980

2,010

30

5.0

4.9

4.7

4.6

5.3

5.2

Residence-27

Esty Maison MINAMIAZABU

1,300

1,140

1,150

10

4.7

4.6

4.4

4.3

5.0

4.9

Residence-28

Esty Maison JYOUTOU

1,075

916

926

10

5.9

5.8

5.7

5.6

6.1

6.0

Residence-29

Esty Maison TSUKAMOTO

1,250

1,040

1,060

20

5.9

5.8

5.7

5.6

6.1

6.0

Residence-30

Esty Maison KAWASAKI II

1,900

1,850

1,900

50

5.2

5.1

4.9

4.8

5.5

5.4

48

List of Period-End Estimated Values (2)Property No.

Property Name

Acquisition Price(million yen)

Period-end estimated value(million yen)
As of Mar. 31,
2013

Direct capitalization rate (%)

As of Sep. 30,
2013

Change(million yen)
As of Mar. 31, 2013

Discount rate (%)

As of Sep. 30,
2013

As of Mar. 31,
2013

Terminal capitalization rate (%)

As of Sep. 30,
2013

As of Mar. 31,
2013

As of Sep. 30,
2013

Residence-31

Esty Maison AZABUJUBAN

2,700

2,310

2,360

50

4.7

4.6

4.4

4.3

5.0

4.9

Residence-33

Esty Maison ITABASHIHONCHO

1,000

865

878

13

5.1

5.0

4.8

4.7

5.4

5.3

Residence-34

Esty Maison OIZUMIGAKUEN

871

757

774

17

5.2

5.1

4.9

4.8

5.5

5.4

Residence-35

Esty Maison TENJINHIGASHI I

445

357

364

7

6.0

5.9

5.8

5.7

6.2

6.1

Residence-36

Esty Maison TENJINHIGASHI II

840

662

674

12

6.0

5.9

5.8

5.7

6.2

6.1

Residence-37

Esty Maison SHIJONISHINOTOIN

1,420

1,020

1,040

20

5.8

5.7

5.6

5.5

6.0

5.9

Residence-39

Esty Maison HIGASHISHINAGAWA

2,610

2,210

2,250

40

5.2

5.1

5.0

4.9

5.4

5.3

Residence-40

Esty Maison HACHIOJIMINAMINO

1,000

948

946

-2

5.7

5.7

5.6

5.6

5.8

5.8

Residence-41

Esty Maison NISHINAKAJIMA

2,250

1,850

1,870

20

5.8

5.7

5.6

5.5

6.0

5.9

Residence-42

Esty Maison
ITABASHIKUYAKUSHOMAE

2,700

2,300

2,350

50

5.1

5.0

4.8

4.7

5.4

5.3

Residence-43

Esty Maison MUSASHIKOYAMA

1,012

926

946

20

5.1

5.0

4.8

4.7

5.4

5.3

Residence-44

Esty Maison SENDAGI

757

629

641

12

5.1

5.0

4.8

4.7

5.4

5.3

Residence-45

Esty Maison YOTSUYASAKAMACHI

2,300

1,790

1,820

30

5.0

4.9

4.7

4.6

5.3

5.2

Residence-46

Esty Maison HAKATAHIGASHI

2,250

2,200

2,240

40

5.9

5.8

5.9

5.8

6.0

5.9

Residence-47

Esty Maison KAMIGOFUKU

900

774

790

16

5.8

5.7

5.8

5.7

5.9

5.8

Residence-48

Esty Maison SANGENJAYA

871

768

789

21

5.0

4.9

5.1

5.0

5.3

5.1

Residence-50

Prime Maison MUSASHINONOMORI

1,560

1,710

1,750

40

5.7

5.6

5.6

5.5

6.0

5.8

Residence-51

Prime Maison HIGASHISAKURA

1,140

1,260

1,290

30

5.7

5.6

5.5

5.5

6.0

5.8

Residence-52

Prime Maison KAYABAKOEN

640

689

707

18

5.9

5.8

5.8

5.7

6.2

6.0

Residence-53

Esty Maison SANGENJAYA II

714

756

771

15

5.1

5.0

5.2

5.1

5.4

5.2

Residence-54

Esty Maison ITABASHI C6

2,260

2,300

2,300

-

5.2

5.1

5.0

4.9

5.4

5.3

Residence-55

MAST HAKATA

1,920

2,110

2,150

40

6.0

5.9

5.5

5.4

6.2

6.1

Residence-56

Esty Maison KINSHICHO

1,050

1,125

1,150

25

5.1

5.0

4.8

4.7

5.3

5.2

Residence-57

Esty Maison MUSASHIKOGANEI

1,450

1,560

1,590

30

5.2

5.1

5.3

5.2

5.5

5.3

Residence-58

Prime Maison GOKISO

1,640

1,710

1,710

-

5.7

5.6

5.7

5.6

6.0

5.8

Residence-59

Prime Maison YUHIGAOKA

810

840

844

4

5.6

5.5

5.4

5.3

5.8

5.7

Residence-60

Prime Maison KITATANABE

540

543

543

-

5.9

5.8

5.7

5.6

6.1

6.0

Residence-61

Prime Maison MOMOCHIHAMA

1,810

1,850

1,890

40

5.9

5.8

5.4
(Note 4)

5.4
(Note 4)

6.2

6.0

49

List of Period-End Estimated Values (3)Property No.

Property Name

Acquisition Price(million yen)

Period-end estimated value(million yen)
As of Mar. 31,
2013

Direct capitalization rate (%)

As of Sep. 30,
2013

Change(million yen)

As of Mar. 31,
2013

Discount rate (%)

As of Sep. 30,
2013

As of Mar. 31,
2013

Terminal capitalization rate (%)

As of Sep. 30,
2013

As of Mar. 31,
2013

As of Sep. 30,
2013

Residence-62

Esty Maison AKIHABARA

1,560

1,688

1,700

12

5.0

4.9

4.7

4.6

5.2

5.1

Residence-63

Esty Maison SASAZUKA

2,830

2,860

2,910

50

5.1

5.0

4.9

4.8

5.3

5.2

Residence-64

Prime Maison GINZA EAST

5,205

5,277

5,370

93

4.8

4.7

4.5

4.4

5.0

4.9

Residence-65

Prime Maison TAKAMI

905

937

945

8

5.4

5.4

5.5

5.5

5.7

5.6

Residence-66

Prime Maison YADAMINAMI

715

732

740

8

5.9

5.8

5.8

5.7

6.2

6.0

Residence-67

Prime Maison TERIHA

1,110

1,150

1,180

30

6.1

6.0

5.9

5.8

6.3

6.2

Residence-68

Esty Maison HIGASHISHIRAKABE

1,350

1,390

1,400

10

5.8

5.7

5.6
(Note 4)

5.5
(Note 4)6.1

5.9

Residence-69

Esty Maison SENGOKU

1,075

1,130

1,150

20

4.9

4.8

4.7

4.6

5.1

5.0

Residence-70

Esty Maison DAIZAWA

1,870

1,870

1,910

40

4.9

4.8

4.7

4.6

5.1

5.0

Residence-71

Esty Maison TOGOSHI

1,370

1,410

1,450

40

5.0

4.9

5.1

5.0

5.3

5.1

Residence-72

Esty Maison KAWARAMACHI

1,640

1,740

1,760

20

5.5

5.4

5.6

5.5

5.8

5.6

Residence-73

Esty Maison NISHITENMA

1,440

1,540

1,550

10

5.5

5.4

5.6

5.5

5.8

5.6

Residence-74

Esty Maison SHIROKANEDAI

1,900

2,130

2,130

-

4.9

4.9

4.7

4.7

5.1

5.1

Residence-75

Esty Maison HIGASHISHINJUKU

1,370

-

1,450

-

4.8

-

4.9

-

5.0

Residence-76

Esty Maison MOTOAZABU

1,170

-

1,230

-

4.7

-

4.8

-

4.9

Residence-77

Esty Maison TORITSUDAIGAKU

729

-

783

-

4.8

-

4.9

-

5.0

Residence-78

Esty Maison MUSASHIKOYAMA II

844

-

884

-

4.9

-

4.7

-

5.1

Residence-79

Esty Maison NAKANO

1,540

-

1,620

-

4.9

-

4.7

-

5.1

Residence-80

Esty Maison SHINNAKANO

847

-

896

-

5.0

-

4.8

-

5.2

Residence-81

Esty Maison NAKANOFUJIMICHO

863

-

916

-

4.9

-

5.0

-

5.1

Residence-82

Esty Maison TETSUGAKUDO

954

-

1,070

-

5.0

-

4.8

-

5.2

Residence-83

Esty Maison KOENJI

958

-

1,050

-

4.8

-

4.9

-

5.0

Residence-84

Esty Maison OSHIAGE

1,950

-

2,120

-

5.1

-

5.1

-

5.3

Residence-85

Esty Maison AKABANE

2,730

-

2,830

-

5.1

-

4.9

-

5.3

Residence-86

Esty Maison OJI

-

5.1

-

4.9

-

5.3

5.4

5.2

5.2

5.1

5.6

5.4

Residence Subtotal

1,380

-

1,430

123,935

103,891

121,918

1,748(Note 5)50

List of Period-End Estimated Values (4)Property
No.

Property Name

Period-end estimated value(million yen)

Acquisition Price(million yen)

As of Mar. 31,
2013

Direct capitalization rate (%)
Change(million yen)

As of Sep. 30,
2013

As of Mar. 31,
2013

Discount rate (%)

As of Sep. 30,
2013

As of Mar. 31,
2013

Terminal capitalization rate (%)

As of Sep. 30,
2013

As of Mar. 31,
2013

As of Sep. 30,
2013

Retail-1

HAMAMATSU Plaza (Note 6)

3,820

5,639

2,239

-3,400

6.4

6.6

6.2

6.3

6.6

6.7

Retail-2

b-town JINGUMAE II

1,043

910

927

17

4.6

4.5

4.3

4.2

4.9

4.8

Retail-3

RINKU HAGURAZAKI Plaza (Note 7)

4,697

4,410

4,390

-20

-

-

-

-

-

-

Retail-4

b-town MINAMIAOYAMA

1,530

1,140

1,140

-

4.7

4.7

4.7

4.7

4.8

4.8

Retail-5

KOJIMA NEW KAMIFUKUOKATEN

1,300

1,170

1,190

20

6.6

6.5

6.3

6.2

6.9

6.8

Retail-7

b-toss IKEBUKURO

1,980

1,530

1,580

50

5.4

5.3

5.4

5.3

5.5

5.4

Retail-8

Joy Square YUGAWARA

1,810

1,510

1,520

10

6.4

6.4

6.3

6.3

6.6

6.6

Retail-9

Bell Plaza Shopping Center

1,355

1,180

1,190

10

6.3

6.3

6.2

6.2

6.4

6.4

Retail Subtotal

17,536

17,48914,176-3,313

5.8

5.8

5.6

5.6

6.0

5.9

Portfolio Total

141,472

121,380

136,094-1,565(Note 5)

5.4

5.3

5.2

5.1

5.6

5.5

Notes: 1. Amounts of less than one million yen are rounded down.
2. “Period-end estimated value,” “Direct capitalization rate,” “Discount rate” and “Terminal capitalization rate” are the amount based on real estate appraisal or on real estate survey price found in real estate surveys.
3. “Direct capitalization rate,” “Discount rate” and “Terminal capitalization rate” in the residence subtotal, retail subtotal and portfolio total are the simple averages of the figures for the owned properties and are rounded to the nearest first decimal place.
4. A master lease agreement and rent guarantee type lease agreement are concluded with Sekiwa Real Estate Kyushu, Ltd. with regard to Prime Maison MOMOCHIHAMA. In calculating the period-end estimated value as of March 31, 2013, theproperty’s discount rate until the expiry of the contract is 5.4% and its discount rate after the expiry of the contract is 5.6%. The figures remain unchanged in the calculation of the period-end estimated value as of September 30, 2013. Also, a master
lease agreement and rent guarantee type lease agreement are concluded with Sekiwa Real Estate Chubu, Ltd. with regard to Esty Maison HIGASHISHIRAKABE. In calculating the period-end estimated value as of March 31, 2013, the property’s
discount rate until the expiry of the contract is 5.6% and its discount rate after the expiry of the contract is 5.8%, while in calculating the period-end estimated value as of September 30, 2013, the property’s discount rate until the expiry of the contract
is 5.5% and its discount rate after the expiry of the contract is 5.7%. Furthermore, for the sake of convenience, the above chart shows the discount rates until the expiry of the contracts.
5. The residence subtotal and portfolio total of the “Change” column indicate the aggregate amount of changes of properties owned as of the end of the fiscal period ended March 31, 2013 (the 15th FP) (not including the 12 properties acquired during
the fiscal period ended September 30, 2013 (the 16th FP))
6. Hamamatsu Plaza is a commercial complex divided into the Hamamatsu Plaza East area and the Hamamatsu Plaza West area, comprises a total of seven buildings, with five buildings located in the Hamamatsu Plaza East area (the Ito-Yokadobuilding, the Akachan Honpo building, the Xebio building, the Hamapla & Frespo building, and a management building) and two buildings located in the Hamamatsu Plaza West area (the Hamamatsu West building and the Hamamatsu Plaza Sports
building (Zexis)). The Investment Corporation acquired trust beneficiary interests in real estate for these other than the Hamapla & Frespo building and the building of the Hamamatsu Plaza Sports building (Zexis) on July 28, 2005 and started
operations, but a portion was assigned on March 30, 2012 and September 30, 2013. As of September 30, 2013, the Investment Corporation holds only a 49% quasi-co-ownership interest in the real estate trust beneficial interest of trust beneficiaryinterest in real estate for Hamamatsu Plaza East excluding the Ito-Yokado building and its site (hereafter, the “Hamamatsu Plaza East Xebio Building and Other Portions”). Consequently, “acquisition price” and “period-end estimated value” are for the
49% quasi-co-ownership interest of the Hamamatsu Plaza East Xebio Building and Other Portions and do not include the portion that was assigned.
7. As for RINKU HAGURAZAKI Plaza, “Direct capitalization rate,” “Discount rate” and “Terminal capitalization rate” are not indicated because only the land is owned and leased and its appraisal method differs from that of other acquired assets. Pleaserefer to the following table for the appraisal of the property.

Discount rate of price of return to vacant lot after
profiting period in the DCF method (%)

Discount rate in the DCF method (%)
Property No.

Retail-3

Property NameRINKU HAGURAZAKI Plaza

Fiscal period ended
March 31, 2013(End of the 15th FP)

Fiscal period ended
September 30, 2013(End of the 16th FP)*

6.1～6.6

Fiscal period ended
March 31, 2013(End of the 15th FP)*

5.0～6.1

Fiscal period ended
September 30, 2013(End of the 16th FP)*

6.1～6.6*

5.0～6.1*Three properties apply and each differ according to contract
conditions and such.

51

Overview of Interest-Bearing Debt (1)■ Loans
As of date of document

Short-Term loans
payableLenderMizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation

Drawdown Date
May 1, 2013

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation

Current portion of long-term loans payable¥2,450 million¥2,450 million

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥1,100 million

Mizuho Trust & Banking Co., Ltd.

¥1,484 million
July 30, 2010

Mitsubishi UFJ Trust and Banking Corporation

Subtotal

Unsecured

0.34818%

Floating

August 29, 2014

(Note 4)

Unsecured¥2,146 million¥2,000 million

1.42000%

Fixed(Note 3)

Unsecured1.43000%

Fixed

August 31, 2014

(Note 3)

Unsecured

1.57000%

Fixed

February 29, 2016

(Note 3)

Unsecured

1.15900%

Fixed (Note 5)

February 27, 2015

(Note 3)

Unsecured

0.99850%

Fixed (Note 5)

February 27, 2015

(Note 4)

Unsecured

1.18975%

Fixed (Note 5)

February 28, 2017

(Note 4)

Unsecured

February 28, 2014

¥3,954 million¥19,646 million¥2,000 million

May 9, 2011

Sumitomo Mitsui Banking Corporation¥425 million¥425 million

The Norinchukin Bank

¥1,500 million
July 29, 2011

¥500 million¥500 million

Resona Bank, Limited.

¥950 million

The Senshu Ikeda Bank, Ltd.

¥500 million

The Shizuoka Bank, Ltd.

¥500 million
February 1, 2012

¥500 million¥500 million

The Hiroshima Bank, Ltd.

¥500 million

Mizuho Bank, Ltd.

¥700 million

Aozora Bank, Ltd.

¥100 million

Shinkin Central Bank

¥100 million

Mizuho Bank, Ltd.

¥200 million

Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation(Note 4)¥ 600 million

Development Bank of Japan Inc.

Shinkin Central Bank

February 28, 2014

¥4,954 million
February 28, 2011

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

The 77 Bank, Ltd.

Floating¥1,300 million

Mizuho Bank, Ltd.

Sumitomo Mitsui Banking Corporation

0.39818%¥500 million

Resona Bank, Limited.

Mizuho Bank, Ltd.

Collateral¥1,000 million

The Yamaguchi Bank, Ltd.

Mizuho Bank, Ltd.

Use

¥500 million¥1,205 million

Sumitomo Mitsui Banking Corporation

Repayment Date

¥8,200 million

Mizuho Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited

Fixed/Floating¥1,100 million

The Senshu Ikeda Bank, Ltd.

Sumitomo Mitsui Banking Corporation

Interest Rate
(Note 2)

¥1,100 million
October 1, 2013

SubtotalLong-Term loans payable

Balance as of date of document(Note 1)¥200 million
March 2, 2012¥200 million

Sumitomo Mitsui Trust Bank, Limited¥100 million

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥100 million

Mitsubishi UFJ Trust and Banking Corporation¥300 million

Resona Bank, Limited.

¥200 million

52

Overview of Interest-Bearing Debt (2)Long-Term loans payable

LenderDevelopment Bank of Japan Inc.
The Bank of Fukuoka, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Yamaguchi Bank, Ltd.
The Norinchukin Bank
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Limited.
The 77 Bank, Ltd.
The Hiroshima Bank, Ltd.
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Aozora Bank, Ltd.
Shinkin Central Bank
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Limited.
Aozora Bank, Ltd.

Drawdown Date

March 8, 2012

August 2, 2012

August 2, 2012

February 8, 2013

February 28, 2013

February 28, 2013

March 1, 2013

Balance as of date of
document (Note 1)¥1,200 million¥500 million¥400 million¥1,100 million¥1,300 million¥500 million¥2,352 million¥176 million¥176 million¥941 million¥1,470 million¥1,470 million¥750 million¥2,250 million¥750 million¥750 million¥400 million¥500 million¥1,700 million¥2,142 million¥500 million¥500 million¥500 million¥100 million¥500 million¥500 million¥200 million¥200 million¥300 million¥400 million¥300 million¥200 million¥700 million¥500 million¥200 million¥1,000 million

Mizuho Bank, Ltd.

¥500 million

Mizuho Trust & Banking Co., Ltd.

¥200 million

Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

August 30, 2013

¥2,500 million

Interest Rate
Fixed/Floating(Note 2)

Repayment Date

Use

Collateral

1.19475%

Fixed (Note 5)

February 28, 2017

(Note 6)

Unsecured

0.95750%

Fixed (Note 5)

August 31, 2017

(Note 3)

Unsecured

1.15475%

Fixed (Note 5)

February 28, 2019

(Note 3)

Unsecured

0.89900%

Fixed (Note 5)

February 28, 2019

(Note 4)

Unsecured

1.02225%

Fixed (Note 5)

February 28, 2020

(Note 3)

Unsecured

0.75600%

Fixed (Note 5)

February 28, 2018

(Note 3)

Unsecured

0.65475%

Fixed (Note 5)

February 28, 2017

(Note 4)

Unsecured

1.17200%

Fixed (Note 5)

August 31, 2020

(Note 3)

Unsecured¥600 million

Mitsubishi UFJ Trust and Banking Corporation¥200 million

Resona Bank, Limited.

¥500 million

53

Overview of Interest-Bearing Debt (3)Long-Term loans payable

LenderDrawdown Date

Aozora Bank, Ltd.

Balance as of date of
document (Note 1)

Interest Rate
Fixed/Floating(Note 2)

Repayment Date

Use

Collateral¥500 million

Mizuho Bank, Ltd.

¥200 million

Mizuho Trust & Banking Co., Ltd.

August 30, 2013

Sumitomo Mitsui Banking Corporation¥200 million

0.63000%

Floating

August 31, 2018

(Note 3)

UnsecuredInterest Rate
(Note 2)

Fixed/Floating

Redemption Date

Use

Collateral

0.63000%

Fixed

February 28, 2018
(Note 3, 4)

Unsecured¥1,100 million

Sumitomo Mitsui Trust Bank, Limited

500 million
Subtotal¥45,429 million

Total loans¥73,275 million■ Investment Corporation Bonds
Name

Date of issuanceFirst Series Unsecured Investment Corporation Bonds(with pari passu clause among specified investment
corporation bonds)

February 28, 2013

Second Series Unsecured Investment Corporation Bonds(with pari passu clause among specified investment
corporation bonds)

February 28, 2013

Total investment corporation bonds

Total interest-bearing debt

Balance as of date of
document (Note 1)¥4,000 million¥2,000 million

1.00000%

Fixed

February 28, 2020

¥6,000 million¥79,275 million

Notes: 1. Amounts are rounded down to the nearest million yen.
2. Interest rates as of date of document are indicated.
3. Repayment funds for existing borrowings.
4. Acquisition funds for trust beneficiary interest in real estate.
5. Interest rate swap agreements are concluded in order to avoid the risk of rising interest rates, and the interest rates indicated are the rates fixed with the interest rate swap agreements.
6. Redemption funds for the Second Series Unsecured Investment Corporation Bonds issued in March 2007 (private placement limited to qualified institutional investors)

54

Overview of Unitholders as of September 30, 2013
Major Unitholders

Name / Company Name

Diversification of Unitholders
Investment Units
Owned(units)Ownership ofInvestment Units
Outstanding (%)

Japan Trustee Services Bank, Ltd.
(Trust Account)

42,673

26.73

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

10,353

6.48

Sekisui House Ltd.

7,800

4.88

Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)

7,201

4.51

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

5,273

3.30

Deutsche Bank AG London-PB Non-Treaty Clients
613

4,551

2.85

JOINT CORPORATION CO., LTD.

3,000

1.87

NOMURA BANK (LUXEMBOURG) S.A.

2,920

1.82

THE FUJI FIRE AND MARINE INSURANCECOMPANY, LIMITED

2,835

1.77

UNION BANCAIRE PRIVEE (EUROPE) SA

2,602

1.63

89,208

55.89

Financial Institutions(including securitiescompanies)

107 (1.18％)
Sep. 30
2013
9,052
unitholders■The status of large holdings as determined by the large share holdings reports (including
Reports of Changes) submitted by November 11, 2013 is as follows.
Name

Sumitomo Mitsui
Trust Bank, Limited

DIAM
Co., Ltd.

Mizuho Trust &Banking Co., Ltd

Total units held

15,759 units

16,885 units

15,193 units

Total percentage ofownership

9.87%

10.58%

9.52%

Submission date

May 30, 2013

Nov. 8, 2013

Nov. 8, 2013

Foreign firms

Individuals and others(unitholders)

250 (2.76％)
108 (1.19％)
8,587 (94.86％)

67 (0.92％)
135 (1.86％)
107 (1.48％)

Mar. 312013
7,246
unitholders

6,937 (95.74％)
53 (0.87％)
107 (1.77％)
100 (1.65％)

Sep. 30
2012
6,060
unitholders

5,800 (95.71％)

0%

Total

Other domestic firms

20%

40%

60%

80%

100%

(units)Sep. 30,2013
159,605 units

90,687(56.82％)Mar. 31,2013
137,070 units

19,360 21,881(12.13％) (13.71％)

18,307(13.36％)72,889(53.18％)Sep. 30,2012
115,070 units

53,833(46.78％)0%

20%

15,100(13.12%)40%

60%

22,719(16.57％)25,595(22.24％)

27,677(17.34％)

23,155(16.89％)20,542(17.85％)

80%

100%

55

Overview of Asset Management Company
Management Structure of the Asset Management Company
As of date of document
Corporate
Name

Sekisui House SI Asset Management, Ltd.
(Financial Instruments Business Operators Director of
Kanto Local Finance Bureau (Kinsho) Number 337)

Established

July 28, 2004

Capital

200 million yen

Shareholders

Number of
officers andemployees

List of Officers

Sekisui House, Ltd. (75%)
Spring Investment Co., Ltd. (25%)

32 (excluding part-time officers)

President

Junichi Inoue

Senior Managing
Director (full-time)

Koji Sakamoto (IR & Financial Affairs Department, Real Estate
Investment Department and Management Department)

Director (full-time)

Masaki Katsura (Real Estate Management Department)

Director(part-time)

Yoshiki Inazawa (Senior Manager, Accounting & Finance
Department, Sekisui House)

Director(part-time)

Atsuhiro Kida (Senior Manager, Accounting & Finance
Department (Accounting Group), Sekisui House

Auditor (part-time)

Keizo Yoshimoto (Senior Manager, Secretariat, Sekisui House)

General Meetingof Shareholders

Organization
Chart

AuditorBoard of Directors
Compliance Committee

Investment Committee

Compliance Officer
President

Risk Management and Compliance Office

Real Estate Investment
Department

Asset Management
Department

Acquisition Section

Asset Management Section

IR & Financial Affairs
Department
Financial
Affairs Section

IR Section

Management
Department
Accounting
SectionGeneral Affairs
Section56

Historical Investment Unit Price
Investment Unit Price and Trading Volume after Change of Sponsors
(yen)
2,100

600,000

500,000

1,400

400,000

300,000

200,000

700
Sekisui House SI Investment Corporation investment unit price (left axis)

100,000
TSE REIT Index (right axis)
0
Mar.
2010

0
Sep.
2010

Mar.
2011

Sep.
2011

Mar.
2012

Sep.
2012

Mar.
2013

Sep.
2013

(units)5,000
Trading volume
列1

4,000
3,000
2,000
1,000
0
Mar.
2010

Sep.
2010

Mar.
2011

Sep.
2011

Mar.
2012

Sep.
2012

Mar.
2013

Sep.
2013

57

Memo

58

◇ This document is provided for information purposes only and is not a solicitation for investment, nor a recommendation
or invitation to make specific transactions. We caution readers to contact their securities companies with regard to thepurchase of investment units in Sekisui House SI Investment Corporation and to undertake investment decisions attheir own discretion.
◇ This document is not a disclosure document or report based upon the Financial Instruments and Exchange Act, the Act
on Investment Trusts and Investment Corporations, public listing regulations of the Tokyo Stock Exchange or otherrelated laws and regulations.
◇ Strategies, goals and forward-looking statements contained herein are based upon specific assumptions andjudgments made as of the date of the document in accordance with information available to Sekisui House SI
Investment Corporation at the time. Information herein is subject to impact from risks, uncertainties, assumptions andother factors. Accordingly, strategies, goals and forecasts regarding future dates do not guarantee the Investment
Corporation’s future performance, operating results or financial position. Actual results may differ significantly fromexplicit or implicit statements made herein regarding future performance, operating results, financial position or otherconditions.
◇ While Sekisui House SI Investment Corporation has taken due care in the preparation of this document, it does notguarantee the accuracy, completeness, rationality or fairness of its content. Readers are also cautioned that thecontents of this document are subject to change or removal without prior notice.
◇ Duplication and reproduction of the content contained herein without prior consent is prohibited.
◇ This English language document is an abridged translation of the Japanese language document issued on the same
day and was prepared solely for the convenience of, and reference by, overseas investors. Sekisui House SI
Investment Corporation gives no warranties as to its accuracy or completeness.