"Financial Results for the 10th Fiscal Period Ended January 2021"

Star Asia Investment Corporation

上場から5 年、 Now
これからの年 Years
Five Years
Since Listing:
the Next5Five

Star Asia Investment Corporation(Securities CODE 3468)
Star Asia Investment Management
スターアジア不動産投資法人（3468）
スターアジア投資顧問株式会社

Contents

Characteristics of Star Asia Investment Corporation (SAR)

1. A diversified REIT
Portfolio developed with diversified assets located mainly in the Tokyo Area (Note2)

2. Steady growthPursuit of internal growth by the Asset Manager with abundant experience andknow-how as well as external growth based on asset managed performed by theStar Asia Group1.

Executive summary2

3. Initiatives focusing on unitholder value
Constant, “out-of-the-box” active management

2.

The Five-year Trajectory from Listing (to 10th Fiscal
Period)4

3.

Actual and forecasted distribution

10

4.

Operating results for the 10th fiscal period ended
January 2021

15

5.

Mid-term plan

24

6.
7.

Initiatives on ESG
Appendix27
32

Investment policy

Prioritized, focusedinvestment in theTokyo Area (＊１)
Investment ratio 70%
or higher in theTokyo Area

Achieving income
stability and growththroughdiversification ofasset type

Investment primarily
in middle-size
assets (＊2)*Unless otherwise stated within this document, references to all monetary amounts have been rounded down to the nearest monetary unit described, and ratios have been rounded to the decimal point described.
* In this document, Star Asia Investment Corporation may be referred to as "SAR" and Sakura Sogo REIT Investment Corporation as "SSR".
※*Assets that are classified as "Other" in SSR (pre-merger) are classified as "Logistics" in SAR (post-merger) in accordance with Star Asia Investment Management operation guidelines.
*1 “Tokyo area”: “Tokyo area” refers to Tokyo’s 23 wards and the cities of Kawasaki and Yokohama for office properties and retail facilities, and Tokyo and the three prefectures of Kanagawa, Saitama and Chiba for residential properties, logistics facilities, hotels
and student residences. *2 “Middle-size assets” are properties with acquisition prices of less than JPY10bn.

1. Executive summary2

1. Executive Summary
Our Trajectory until 10th Fiscal Period

10th Fiscal Period Results and Forecasts for 11th / 12th Fiscal Period◆ Actual results of 10th Fiscal Period (ended Jan. 31, 2021)◆ Asset Size
JPY 166.7 billion

JPY 61.4 billion(at time of listing)Distribution Per Unit (DPU)：••◆ NAV per unit
JPY 53,746

JPY 57,040(at the end of 1st FP)◆ Built a well-diversified portfolio (at end of 10th Fiscal Period）
Office,40.8%

Logistics,
18.2%
Residence,
19.5%• Number of
Properties：53•

Retail,9.2%

Tokyo area ratio maintained

at 70% or more

From Fiscal Period ending July 31, 2021••

Increased ratio of

profit related fees

We have raised the ratio of asset management fees linked toportfolio NOI and DPU
Aggregate fee amount expected to remain at same level on a total
asset basis◆ Strengthening of ESG Initiatives
Creation of new ESG related
division which will:••

JPY 1,455 /unit

Forecast for Fiscal Period
ending January 31, 2022

JPY 1,455 /unit

New Mid-term Business Plan Through 2026
◆ Formulated a Mid-term Business Plan up to 2026
Asset Size
JPY 300 billion••

Promote increase of asset size in cooperation with Star Asia Group, suchas accessing the sponsor pipeline
Leverage the asset management company's own network to the
maximum extent possible

Distribution per Unit (DPU)
Sustainability Promotion
Division(1) Further strengthen ESG initiatives, (2) Optimize Capex/repair
expensesHiring of new sustainability experts

Planning to participate in the FY2021 GRESB Real Estate

Assessment

Forecast for Fiscal Period
ending July 31, 2021

◆ As long as the effects of COVID-19 persist, our policy remains toutilize negative goodwill to offset any weakness and maintain
distribution level.

Continued Initiatives to Maximize Unitholders' Interests◆ Change of Asset Management Fee Structure

Results were JPY18 ahead of original forecast, or about +1.1％
Will distribute excess portion of NOI that beat original forecast◆ Forecasted Distributions Per Unit(at end of 10th Fiscal Period）

Hotel,
12.3%

JPY 1,676 /unit(at end of 10th Fiscal Period）•

Realize external growth and internal growth and aim to increase
distributions by 2% per year

GRESB Assessment•

JPY 1,600 /unit

3 STAR

Within ESG, already established objective related to "E" in particular32. The Five-year Trajectory from Listing(to 10th Fiscal Period)4

2. The Five-year Trajectory from Listing (to 10th Fiscal Period)(1)
Growth of SAR
1FP（as of Jul 2016）10FP（as of Jan 2021）

Hotel, 6.2%

◼ Expanded asset size with continued support fromStar Asia Group.
◼ Constructed a well-balanced and risk tolerant
diversified portfolio.

Hotel,
12.3%
Logistics,
29.9%

Logistics,
18.2%

Office42.4%

Residence,
19.5%

Residence,
21.6%

Office,40.8%

Retail, 9.2%

Asset Size

61.4 billion yen

2.7fold

166.7 billion yen

NAV per unit

53,746 yen(note1)

6.1%up57,040 yen

Portfolio NOI yield (note1)

4.8 ％

0.1% up

4.9 ％Assets in Tokyo areas

78.4 ％

73.0 ％

Mid-sized assets

100.0 ％

93.3 ％

Negative goodwill‐

8.8 billion yen

Credit Rating (JCR、R&I)‐

A-（stable）% acquired from Sponsors

90.4 ％

76.4 ％ （note3）

Same Boat Investment

8.5 billion yen

11.8 billion yen

Number of
Asset replacement deal‐

Mezzanine loan debt
Investment cumulative total‐

Sponsor Support

Implementation ofContinuous
Active Management

7（ gain on sale 4.3billion yen)

1,310.5 million yen（*1) NAV per unit as at the end of the 1st Fiscal Period was 107,492 yen. However, as SAR executed a 2-for-1 split of its investment units effective July 31, 2020, the amount stated has been halved. （*2) Portfolio NOI Yield is calculated as the weighted average (based on
acquisition price) of the actual NOI yield of each property held as at the end of each period (assuming that fixed asset taxes are expensed). （*3) based on acquisition price （*4) The percentage held acquired from the Sponsors has been calculated excluding theproperties accepted upon the merger with Sakura Sogo REIT (as of end of January 2021: total amount of JPY 59.1 billion).

52. The Five-year Trajectory from Listing (to 10th Fiscal Period)(2)◆ Since listing, we have focused on expanding asset size through property acquisition, three public offerings, seven asset replacements, andthe merger with Sakura Sogo REIT.
◆ Although the "asset size of JPY 200 billion by 2020" goal was not met, asset size has expanded 2.7 times from JPY 61.4 billion at listing, to
JPY 166.7 billion.

Change in investment unit price and asset size from the time of listing
1st follow-on
2nd follow-on
offering
offering
March 17, 2017
January 12, 2018
1st asset
2nd asset
3rd asset
4th asset
replacement
replacement
replacement
replacement
July 23, 2018
August 21, 2018（yen） December 5, 2016 February 28, 2017
65,000
スターアジア不動産投資法人の資産規模（右軸）
SAR’s AUM (right)
IPO
April 20, 2016日

3rd follow-on
offering
August 21, 2018

MergerMarch 2, 2020
5th asset
replacement
March 2, 2020

6th asset
replacement
October 5,2020（￥100mn）
2,000

53 properties 1,800
166.7 billion

スターアジア不動産投資法人の投資口価格（左軸）
SAR’s unit price (left)

60,000

7th asset
replacement
March 2,2020

東証REIT指数（左軸）TSE REIT index

1,600

55,0001,400
50,0001,200

45,0001,000

800

40,00018 properties
35,000 61.4 billion

600
400

30,000

1FP

2FP

3FP

4FP

5FP

6FP

7FP

8FP

9FP

10FP

0

2016/4/20
2016/5/20
2016/6/20
2016/7/20
2016/8/20
2016/9/20
2016/10/20
2016/11/20
2016/12/20
2017/1/20
2017/2/20
2017/3/20
2017/4/20
2017/5/20
2017/6/20
2017/7/20
2017/8/20
2017/9/20
2017/10/20
2017/11/20
2017/12/20
2018/1/20
2018/2/20
2018/3/20
2018/4/20
2018/5/20
2018/6/20
2018/7/20
2018/8/20
2018/9/20
2018/10/20
2018/11/20
2018/12/20
2019/1/20
2019/2/20
2019/3/20
2019/4/20
2019/5/20
2019/6/20
2019/7/20
2019/8/20
2019/9/20
2019/10/20
2019/11/20
2019/12/20
2020/1/20
2020/2/20
2020/3/20
2020/4/20
2020/5/20
2020/6/20
2020/7/20
2020/8/20
2020/9/20
2020/10/20
2020/11/20
2020/12/20
2021/1/20
2021/2/20

25,000200*The closing price of TSE REIT index as of the date of listing of SAR (1,887.75) has been converted based on the closing price of SAR’s investment units on the same day of 98,300 yen.
Furthermore, SAR has conducted a 2- for-1 investment unit split on the reference date of July 31, 2020. The investment prices prior to such split are also indicated split in half.

6

2. The Five-year Trajectory from Listing (to 10th Fiscal Period)(3)◆ Asset size expanded to JPY 166.7 billion due to the merger with Sakura Sogo REIT, and market capitalization has also increased to JPY
89.2 billion (as of February 26, 2021).
◆ Obtained credit ratings of A- from R&I and A- from JCR.

Sar’s current positioning of Asset size J-REIT industry（Asset size ￥100mn）
3,500（yield ％）
6.50

6.00

approximately
2.7 fold

3,000

To JPY 300 billion in the next 5
years.

approximately
1.6 fold

2,500

2,000

5.50

5.00

4.50

SAR, 1,667

4.00

1,500

3.50

SAR
1,000

3.00

SSR
500

2.50

0

JCR格付

2.00

A

A-

A-

A+

A

■

■

A-

A+

■

■

A+

A

A-

AA- AA- A+ AA- AA-

■

■

■

■

■

FTSE EPRA/NAREITMSCI Small Cap

■

■

■

■

A

A+ AA- AA- AA-A

AA- A+AA AA- AA- AA-

■

■

■

■

■

■

■

■

■

■

■

■

■

■

■

■

■

■

■

■

■

■

■

■

■

■

■

■

* The above has been prepared by the asset management company based on disclosed materials for each REIT and each company, with respect to investment companies whose asset size is JPY 300 billion or less as of theend of January 2021.
SAR's yield is calculated as follows: (Forecasted distributions for FP11 of 1,455 yen+ forecasted distributions for FP12 of 1,455 yen)÷investor unit price as of January 29, 2021 of 47,950 yen＝6.07%.

7

2. The Five-year Trajectory from Listing (to 10th Fiscal Period)(4)◆ During the 5 years (10 fiscal periods) since listing, as part of our active management policy, we executed seven asset replacements for a
total gain-on-sale of JPY 4.3 billion.
◆ Our effective diversified asset strategy has led to a stable portfolio NOI yield even amid the current COVID-19 environment.

Change in distribution
分配金Distribution

2,500

Gain on
売却益分
sales

Transition of unrealized gain amounts and unrealized gain ratios◼ Distributions from gain-on-sale fromasset replacements executed as apart of active management was
realized in 6 out of 10 fiscal periods.

2,000（million yen)

Unrealized
gains

含み益

12,00010,000

Unrealized
含み損益率
gains ratio

8,714

12.0%
10.0%

1,500

8,000

8.0%

1,000

6,000

6.0%

5.2%

4,000

500

ActiveActiveManagement Management

ActiveActiveManagement Management

2,000

0
1FP

2FP

3FP

4FP

5FP

6FP

7FP

8FP

9FP

10FP

11FP

7.0%

Retail
商業

物流
Logistics

Residence
住宅

Hotel
ホテル

PF全体
Total

Retail 7.1%

6.5%

Logistics, 5.1%

6.0%
5.5%

Residence, 5.0%

5.0%

0

0.0%
1FP 第2期
2FP 第3期
3FP 第4期
4FP 第5期
5FP 第6期
6FP 第7期
7FP 第8期
8FP 第9期
9FP 第10期
10FP
第1期

Ratio of rent revenues from Top 10 tenants by rent

NOI Yield (on acquisition price basis)
オフィス
Office2.0%

12FP

forecast forecast

7.5%

4.0%

ActiveActiveManagement Management

1FP
Jul 2016
Revenues from top
10 tenants byrents.
46.1 %

10FP
Jan 2021
Revenues from top
10 tenants by rents
25.9 %

Total, 4.9%

4.5%

Office, 4.5%

4.0%

Hotel, 3.6%

3.5%
3.0%
1FP
第1期

2FP
第2期

3FP
第3期

4FP
第4期

5FP
第5期

6FP
第6期

7FP
第7期

8FP
第8期

9FP 第10期
10FP
第9期（*) "NOI Yield" is calculated as the weighted average (based on acquisition price) of the actual NOI yield of each
property held as at the end of each period (assuming that fixed asset taxes are expensed).

Total tenants ： 390

Total tenants ： 1,450（*）The above stated ratios are calculated by extracting the top 10 tenants by rent amounts based on currently
effective lease agreements as of the end of the 1st fiscal period and the end of the 10th fiscal period, and dividingthem by the gross rent amounts.

82. The Five-year Trajectory from Listing (to 10th Fiscal Period)(5)◆ It was recognized that cash management was important for utilizing negative goodwill with an aim to stabilize distributions.
◆ At SAR, an average of 63% of the depreciation expenses for each period up to 10th fiscal period has been disbursed as capital expenditures.

SSR Capex／Depreciation expenses
SSR
SSR減価償却費
Depreciation
expences

100 thousand yen

700,000

SAR Capex／Depreciation expenses
SAR
SAR減価償却費
Depreciation
expences

SSRcapex

SARcapex

予想
forecast

628,354600,000
Changed asset
managementcompany fromMarch 2020

500,000
400,000
300,000
200,000
100,000
0
Feb
2017

Aug
2017

Feb
2018

Jun
2018

Dec
2018

Jun
2019

Dec
2019

Jul
2020

Capital expendituresof SSR◼ The asset management company was changed to Star Asia
Investment Management Co. from March 2020 to manage theassets.
◼ Conducted evaluation of the contents and amounts of various
construction plans related to capital expenditures.
◼ 53% of depreciation expenses were spent as capital expenditures(actual % prior to change of asset manager: 76%)

1FP

2FP

3FP

4FP

5FP

6FP

7FP

8FP

9FP

10FP

11FP

12FP

forecast forecast

Organized
framework foradministering capital
expenditures.

Jan 2021◼ Newly established the Sustainability Promotion Division within the asset
management company, for a system to optimize capital expenditures.

Aug 2020◼ Invited Nippon Kanzai Co. Ltd. as a sub-sponsor, to establish asystem for receiving support related to capital expenditures.
Jul 2017◼ Newly established a Construction Management Division within Star
Asia Group, which has started to provide support to SAR.

9

3. Actual and forecasted distribution10

3. Actual and Forecasted Distribution (1)10FP Distribution per unit
◆ DPU for 10FP is +1.1% compared with the initial forecast as NOI from the portfolio outperformed initial estimates.
◆ We plan to keep the DPU equal to the initial forecast for both the11FP and 12FP by utilizing negative goodwill

10FP

11FP

12FP

（Ended Jan 2021）－Actual－（Ended July 2021）－Forecast－（ Ended Jan 2022）－Forecast－

JPY

1,676

JPY

Up 18 yen, a 1.1％ increase
compared to forecast

1,455

Utilization of Internal reservesof 53 yen

JPY

1,455

Utilization of Internal reservesof 75 yen

≪Keeping DPU Stable≫◼ Set up minimum DPU by utilizing
negative goodwill as long as
impacts from Covid-19 persist

1,455

Minimum DPU JPY

(yen）

2,000
1,900
1,800
1,700

40

33

6

345

61
111

1,600
1,500
1,400
1,300
1,200
1,100

1,658

1,676

<Expense
related rent
business>
・Assumeddecrease inoccupancy
rates of offices
and residences.
・Increase inleasing activity
costs.

582<SGA>
Decrease inmerger costs

30

114
13
Decrease ingain ondisposal<internal
reserves>
Reversal of
RTA<Non operating
expenses>

1,455

Increase ofrefinancing costs

822<internal
reserves>
In addition toreversal of RTA,
made
distributions fromprofits carriedforward

1,455

1,000

11

3. Actual and forecasted distribution (2)Operating Results (Summary) for the 10FP, and Forecast Assumptions for 11FP and 12FP
◆ Impact of COVID-19 is limited (excluding former "Hotel WBF Art Stay Namba").
◆ Given the slight prolongation of downtime in office and single-type residence space, we have been conservative with future business
forecasts.

10FP (ended Jan. 2021) Actual•

Office••••Retail••Residence

•
•
•

•

Logistics
•

•

Hotel
•

Assumptions for 11FP, 12FP

The cancelled area exceeded newly contracted area leading to slight decline
in occupancy rates.
Tenant candidates required more time for decision-making leading to a slightly
prolonged down time (period of no tenants and no rents).
There were no tenant terminations that was clearly due to the impact of
COVID-19.

◼ Down time for vacant space has been set for a relatively long period.
◼ Although a steady increase in occupancy rates is anticipated, rents for
new contracts have been conservatively assumed.
◼ No increase in rents are anticipated at the time of contract renewals.

All tenants whose lease periods have expired have renewed the leases on thesame conditions as before.
There were no new rent reduction requests received due to effects of COVID19.
There was one tenant whose rent reduction period, which was agreed in thepreceding fiscal period extended to this fiscal period (ended January 31, 2021).
However, the impact on profits was limited.

◼ There are many tenants which handle daily necessities, and there are
no tenants with whom rent reductions/exemptions are being discussed.
The same level of profits as the Fiscal Period ended January 31, 2021
is assumed (although there are some properties for which a slightdecrease in occupancy rates is anticipated, impact on profits is limited).

Under the 6th and 7the asset replacements, 2 family-type residences in theTokyo Area were acquired which have stable occupancy status.
The occupancy status of family-type residences are stable.
Increase in rents were seen for some residential units, although for small
amounts.
Single-type residences tend to have prolonged down time after termination.

◼ For family-type residences, the same level of rents and occupancy
rates as actual results of the Fiscal Period ended January 31, 2021 isassumed.
◼ For single-type residences, occupancy rates are conservatively
assumed, and no increase is anticipated.

"Funabashi Nishiura Logistics I" was part of our asset replacement strategy
and any assumed down time and leasing cost expenditures due to tenant
cancellations have been resolved.
There are no other events worth noting.

◼ Rent increases that have been agreed to with tenants have been
incorporated into the financial performance forecast.
◼ For tenants other than those stated above, it has been assumed that
rents will remain at the same level at the time of contract renewal andre-signing.

Regarding former called "Hotel WBF Art Stay Namba", new tenants havealready been solicited (fixed-term lease contracts already signed at the end of
February 2021), and the property has been renamed to "KOKO HOTEL Osaka
Namba".
For hotels other than the above, fixed rents are received from tenants.

◼ Rent revenues from "KOKO HOTEL Osaka Namba" have been set atzero.
◼ For hotels other than the above, it is assumed that only fixed rent
payments will be received as per contract.

12

3. Actual and forecasted distribution (3)Factors for increase/decrease compared with forecast/actual results for the 10FP
◆ Achieved increase in NOI amounts due to increase in rent revenues of held properties and focusing on cost reductions.
◆ Of the increased amount portion, approximately 31 million yen which excludes transient factors are expected to be distributed (DPU (vsforecast) ＋18 yen, increase by 1.1%).
(Unit: million yen)
10th FP (ended Jan.
2021) forecast*

Lease business revenue
Office rent
Retail rent
Residence rent
Logistics rent
Hotel rent
Other
Expenses related to rent business(Depreciation is excluded)
NOI
Depreciation
Rent revenues/expenses
Mezzanine
TK dividend
Gain on sale of real estate property
Loss on sales of real estate property
SGA

Operating income
Non-operating income
Non-operating expenses
Ordinary income
Extraordinary income
Income before income taxes
taxes

Net income
Cash distribution per unit
FFO per unit

10th FP (ended Jan.
2021) ActualComparison with
forecast

Factors for the increase/decrease

(4)

+29
+4
△74
+75
△18
+42

＜Revenues from leasing business＞(1) Disposition of Suroy Mall Nagamine △ 88 million yen
Other factors +14 million yen→conservatively estimated effects of COVID-19(2) Acquisition of Tokiwadai, Mitsuike +89 million yen
Other factors △14 million yen→Occupancy rates generally declining.
(3) Disposition of Funabashi Nishiura I △18 million yen

(5)

△32

(4) Asset replacement △7 million yen
Utility fee revenue △27 million yen
Original state restoration fee revenue +35 million yen
Penalty charge revenue +10 million yen
Renewal fee revenue +21 million yen
Key money revenue +2.7 million yen

5,618
1,890
923
814
993
423
573

5,648
1,895
848
889
974
423
616

(1)
(2)
(3)

1,583

1,550

4,035
632
3,402
24
970
1,151
3,245
468
2,777
8,893
11,670011,6701,658 yen
6,768 yen

4,097
628
3,469
24
5
993
19
1,096
3,376
4
469
2,911
8,891
11,802011,801
1,676 yen
6,841 yen

(6)
(7)
(8)

+62
△4
+66
+0
+5
+23
+19
△55
+130
+4
+1
+133
△2
+131
+131

<Expenses of leasing business>(5)Impact of asset replacements △18 million yen
Repair costs +45 million yen
Utility costs △60 million yen
Leasing costs △3 million yen(6) Increase of gain-on-sale of Alphabet Seven
Gain-on-sale of Suroy Mall Nagamine.
(7) Loss-on-sale of Funabashi Nishiura Logistics I(8) Reduction of merger related expenses △62 million yen+ 18yen+ 73yen（*）Announced in 9th FP closing of accounting report (September 14, 2020)

13

3. Actual and forecasted distribution (4)Forecast of business results for the 11FP ending July 2021 / the 12FP ending January 2022
◆ The cashflow for the fiscal period ending July 31, 2021 is expected to improve compared to the previous forecast, given the disposition of thelogistics facility which was assumed to be a revenue reduction factor due to exiting of tenants, and also given the incorporation of residencesin the Tokyo area which are expected to have stable occupancy rates.
(Unit: million yen)

11FP
(Jul 2021)
Previous
Forecast(Ａ)*
Lease business revenue
Expenses related to rent business(Depreciation is excluded)

Current
forecast forthe 11th FP
ending Jul
2021 (B)

5,461
1,630

Increase/dec
rease (B-A)

5,488 (1)1,569 (2)+26

Major factors for theincrease/decrease

Increase / decrease factors for11th fiscal period (compared tolast forecast)△60 (1) Revenues from leasing

Current
forecast forthe 12FP
ending Jan
2022(C)

5,540
1,602

Increase/decrease (CB)

(1)
(2)

business
NOI
Depreciation
Rent revenues/expenses

3,831

3,919

+87

・Impact of asset replacements +84
million yen

646

635

△10

・Office rents △9 million yen

3,185

3,283

・Utility fees revenue △37 million+98 yen

Mezzanine

24

24

+0

SGA

515

518
2,788

Operating income

2,694・Residence rents △25 million yen

・Penalty charge revenue +6 million
yen

3,938

Major factors for the increase/decrease

Increase/ decrease factors for 12th fiscal+52 period (compared to current forecast forthe 11th FP)(1)Revenues from leasing business+33 ・Office rent revenues +30 million yen
・Utility fee revenues ＋28 million yen
・Penalty revenues △6 million yen

+19

647

+12

3,290

+6

24

+0

+3 (2)Leasing business expenses

513

△5

・Impact of asset replacements△26
million yen
+94

2,801

+12

(2)Expenses of leasing business・Utility expenes ＋25 million yen
・Leasing related costs ＋13 million yen
・Repair expenses △5.7 million yen(3)Temporary increase in expenses due
to refinancing

・Utility costs △41 million yen

436

439

+3

・Leasing expenses △21
million yen

2,258

2,349

+91

・repair expenses ＋25 million
yen

0

0

Net income

2,257

Cash distribution per unit

1,455

Non-operating expenses

Income before income taxes

Taxes

489

(3)

+50

2,311

△3
7

-

0

-

2,348

+91

2,311

△3
7

1,455

-

1,455

-

（*）Announced in 9th FP closing of accounting report (September 14, 2020)14

4. Operating results for the 10th fiscal
period ended January 2021

15

4. Operating results for the 10th fiscal period ended January 2021 (1)- Occupancy rate status ◆ Although slight prolongation of downtime was observed for offices and single-type residences, the occupancy rate status for the portfolio on
the whole was stable.
◆ Given the effects of strengthened leasing activities, currently we are seeing a good response for attracting new tenants and the improvementof occupancy rates.
100.0%

Retail, 98.8%
Logistics, 97.8%

98.0%

Total, 96.9%
96.0%

Office, 95.8%

94.0%

Residence, 95.7%

93.6%

92.0%

94.4%

Logistics 1 tenant leave

91.3%

Hotel, 91.3%

88.0%
86.0%

State of
Emergency

State of
Emergency

90.0%

Hotel 1 tenant leave

84.0%
82.0%

Officeオフィス

Retail
商業施設

Residence
住宅

Logistics
物流施設

7FP

80.0%
Feb Mar Apr
2019 2019 2019

May
2019

7FP
(Jul 2019)

Hotel
ホテル

Total
全体

8FP
Jun
Jul
Aug
Sep
2019 2019 2019 2019

8FP
(Jan 2020)

9FP

10FP

Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Aug
Sep
2019 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020

Oct
2020

Nov Dec Jan
2020 2020 2021

10FP

9FP
(Jul 2020)

Aug 2020

Sep 2020

Oct 2020

Nov 2020

Dec 2020

Jan 2021

Office96.4 %

98.3%

98.6%

98.9 %

98.8 %

97.9 %

97.4 %

96.1 %

95.8 %

Retail－－－98.8 %

98.8 %

98.8 %

98.8 %

98.8 %

98.8 %

Residence

97.3 %

97.4%

95.4%

96.8 %

96.3 %

97.0 %

96.2 %

95.6 %

95.7 %

Logistics

97.8 %

97.8%

97.8%

98.0 %

98.0 %

98.0 %

98.0 %

97.8 %

97.8 %

Hotel

100.0 %

100.0%

100.0%

91.3 %

91.3 %

91.3 %

91.3 %

91.3 %

91.3 %

Total

97.7 %

98.1 %

97.1 %

97.8 %

97.7 %

97.6 %

97.4 %

96.9 %

96.9 % 16

4. Operating results for the 10th fiscal period ended January 2021 (6)- Office - Status of rent gap and change in tenant as of the end of the 10th FP Occupancy rate status
Status of changes to tenants in the fiscal period ended January 2021
New contract
14000 ㎡
12000 ㎡

＜New contract＞

8 tenants

Transition of entering and leaving of tenants (by area & number of cases)
8,000

1,625.13㎡※（ ） Number of tenants
Area of Move in
入居面積

contrast between previously tenant

Earlycancellation

Rent up7 tenants

1,260.69㎡

Monthly rent 20.8％up

Rent down

1 tenant

364.44㎡

Monthly rent 4.2％down＜Renewal＞

38 tenants

11,164.90㎡

Renewal/Rent up
Renewal1 tenant
33 tenants

239.55㎡
10,279.86㎡

Cancellation

4 tenants

645.49㎡

Cancellation
10000 ㎡
8000 ㎡

6,000
4,000

Monthly rent 3.9％up

2,000

0
＜Termination in the contract period＞

6000 ㎡

No change
4000 ㎡
2000 ㎡
Increase in rent

0㎡

9 tenants

3,231.42㎡◼

During the 10th fiscal period, there were 8 new tenant entries(1,625.13㎡), of which for 7 tenants, increase in rent incomparison to that of the former tenant was achieved (+20.8%).
◼ Although a slight decrease in occupancy rate was seen due toprolongation of down time, going into the 11th fiscal period, thenumber of applications for new tenant entries is increasing, andwe are feeling a good response towards improvement ofoccupancy rates.
(＊)The ratio has been calculated using the gross area where tenantchanges occurred within the 10th fiscal period (16,021.45㎡) as thedenominator.

-6,000

(10)

(13)

第7期
７FP
2019年7月期
Jul 2019

第8期
8FP
2020年1月期
Jan 2020

レントギャップ0%未満
Rent gap
less than 0%

(8)
(7)

(13)

第9期
9FP
2020年7月期
Jul 2020

Rent
gap 0% toレントギャップ0%以上10%未満
less than 10%

第10期
10FP
Jan 2021
2021年1月期

Rent
gap
レントギャップ10%以上
10% or more

70

20,000.00㎡

71
68

15,000.00㎡
25.7%
Rent gap 0% to lessthan 10%(7)

Contract Rent Period of Office Portfolio
25,000.00㎡

51.3%
Rent gap
10% or more

(19)

-4,000＜Rent per Tsubo＞

Rent gap exists at
1,093 yen/tb (8.0％) of
the total(7)-2,000Change in tenants in the 10th fiscal period (note1）＜Diversification status of rent gap＞

Area of Move out
退去面積

Rent gap exists at
77.0％（based on floorarea) of the total

13,620yen / tb

67

14,713yen / tb
10,000.00㎡

145,000.00㎡

23.0%
Rent gap less than 0%

Contracted Rent
Unit Price

Nearby Market
Rent Unit Price(note1) The rent gap is the gap between market rent and contract rent with each tenant. The market rent has taken theintermediate value of the expected new contract rents (described as a range) for each property appraised by CBRE as of theend of the period. With respect to Amusement Media Gakuin Honkan/Shinkan, the net rentable area is used for the calculation.

0.00㎡
第11期
11FP
2021年7月期
Jul 2021

第12期
12FP
2022年1月期
Jan 2022

第13期
13FP
2022年7月期
Jul 2022

第14期
14FP
2022年8月
Jan 2023

第15期以降15FP
2023年1月期以降
or after17

4. Operating results for the 10th fiscal period ended January 2021 (3)- Retail Status of commercial facilities in 10th fiscal period
Average occupancy
rates during period

Occupancy rates
at end of period

La Park Kishiwada

98.9 %

99.0 %

Suroy Mall Chikushino

97.6 %

97.6 %

Seiyu Minakuchi

100.0 %

100.0 %

Total（note 1）

98.7 %

98.8 %

No. of requests received for reduction/exemption ofrents during 10th fiscal period.

0

Cases where requests were received in thepreceding period and which had impact onrevenues in the 10th fiscal period.

3

Impact on revenues in 10th fiscal period.

less thanJPY 700 K

Tenants Breakdown by Business Type （as of end of January 2021）
Area (㎡）

Number ofleaseagreements.

Daily necessities (Food)

39,732.58

6

Daily necessities (Clothing)

3,726.98

11

Daily necessities (Others)

23,467.87

Other product sales

12,622.03

13

Clinic168.602

Private tutoring schools

84.39

0.1 %

1

Tenants Breakdown by
Business Type

83.4 ％

10

0.00

0.0 %

0

Sports clubs

2,466.13

2.6 %1

Food and beverage

1,302.31

1.4 %

12

Entertainment andamusement

8,622.82

9.0 %3

Other services

3,422.17

3.6 %

18

Total

95,615.88 100.0 ％77Child care and day care

Disposal of Suroy Mall Nagamine through asset replacement➢ Many of the tenants handle daily necessities(83.4% of the total floor space), and it isbelieved that the impact of spreading of
COVID-19 on business performance will belimited.
➢ Going forward, if requests are received fromtenants for the reduction or exemption ofrents, we plan to respond sincerely and take
into account the business conditions,financial situation and possibility of utilizing
public support measures with each individual
tenant.
➢ Reduction/exemption of rents which has
continued from the preceding period has
ended during the current period. The impact
of such reduction/exemption on profits islimited.

property operations and management caring for the enviornment
DBJ Green Building Certification

Suroy Mall Nagamine （Disposed)
Disposition priceAppraised value
Appraised cap rate
Age

➢ During the 10th fiscal period (ended January2021), there were no requests received for
reduction/exemption of rents from tenants.

3,500 mm3,450 mm
5.8 ％
13.1 years◼ La Park Kishiwada◼ Seiyu Minakuchi(note1）(note2）(note3）

Newly obtained certifications
for the above 2 properties

Suroy Mall Chikushino✓ Achieve the strategy (disposal of suburban typecommercial retail facilities) upheld from before themerger + secure stability of the portfolio.

✓ It is likely that the number of brick-and-mortar
stores may decrease in the mid- to long-term due
to a reduction in population in trade zones, anddue to the advance of e-commerce✓ The ratio of residences within the portfolio toincrease by incorporating family-type residences in
the Tokyo area which are believed to have highstability of income.

✓ Find buyer candidates by utilizing the broad
network of Star Asia Investment Management Co.,and achieve a sale above the appraisal value(SAR’s acceptance price).

◼

From the perspective property
operations and management caring
for the enviornment, lightings changed
to LED to suppress electricity
consumption volume.

◼

Parking lot, pole lights (for 1 light: 21
units, for 2 lights, 24 units), garden
lights (13 units), information sign lights(6 places, total 22 units)(note１) Calculated excluding Suroy Mall Nagamine sold during the 10th fiscal period. (note2) The appraisal value states the appraisal value as of July 30, 2020 as stated in the appraisal reports obtained by SAR. (note3) Appraisal NOI Yield is calculated by
dividing the Net Operating Income (NOI) stated in appraisal report by the transferred price with respect to asset to be assigned. (note4) For the years since completion, the number of years lapsed as of July 30, 2020 from construction completion is stated.

18

4. Operating results for the 10th fiscal period ended January 2021 (4)- Residence ◆ Although occupancy rates for the 3 single type properties have decreased due to the tendancy for prolonged downtime, the impact is limited
as the proportion of the 3 properties is low.
◆ Family-type residences have maintained high occupancy rates, and have contributed to the stablization of portfolio income.

Transition of occupancy rates by inidivisual properties.

Revenue ratios of single type and family type residences◼ Single Type：
Residential units with exclusive areasof less than 30㎡

State of Emergency 1

100.0%

96.6%

98.0%
96.0%

Urban Park Namba（117 units）
Urban Park Gokokuji（111 units ）Urban Park Koenji（84 units ）

12.6%

94.0%
92.0%
90.0%

Total
全体

88.0%

ファミリータイプ
Family Type

86.0%

83.2%

シングルタイプ
SingleType

84.0%◼ Calculated the ratio of leasing businessrevenes from the above 3 properties,
against the talo leaseing businessrevenues for the fiscal period ended
January 31, 2021.

87.4%

82.0%

Jan 2021

Dec
2020
2021年1月

Nov 2020
2020年12月

Oct 2020

2020年11月

2020年9月

Sep 2020

2020年10月

2020年8月

Aug 2020

2020年7月

Jul 2020

Jun 2020

2020年6月

10FP

May 2020

2020年4月

Apr 2020

2020年3月

Mar 2020

2020年2月

Feb 2020

2020年1月
Jan
2020

Dec 2019

2019年12月

2019年11月
Nov 2019

2019年9月
Sep
20192019年10月
Oct 2019

2019年8月
Aug
20192020年5月

9FP

8FP

2019年7月Jul20192019年6月
Jun
2019

Apr
2019
2019年4月

Mar20192019年3月Feb
20192019年2月

80.0%

May
2019
2019年5月

7FP

Transition of new contracts and cancellations of single-type residences※singles-type housing : UP Namba, UP Gokokuji, UP Koenji
1800.00 ㎡

Cancellation
解約面積
area

1600.00 ㎡

New新規面積contract
area

Cancellation
解約件数
number of tenants

New contract90
新規件数
number of tenants

80◼ During the fiscal period ended July 31, 2020, there were many
cancellations of residences and new contracts failed to increase,but tended to recover in the 10th fiscal period.
◼ Continued to focus on leasing of single-type residences.

1400.00 ㎡
1200.00 ㎡

800.00 ㎡

40600.00 ㎡

30400.00 ㎡

20200.00 ㎡

10

8FP
第8期
Jan 2020

9FP第9期
Jul2020年7月
2020

10FP
第10期
Jan 2021◼ Common area maintenance fees fromthe single-type resdinces areapproximately 12.6% of the residential
portfolio.

Acquired 2 family-type properties during the 10th fiscal period.
◼ During the 10th fiscal period, Incorporated family-type residences (2 properties) in the
Toyo Area which are believed to have stable income.

<Urban Park Tokiwadai Koen><Urban Park Mitsuike Koen＞

60
50

第7期
７FP
Jul 2019

Family Typeファミリータイプ

70

1000.00 ㎡

0.00 ㎡

Single Type
シングルタイプ

0Location

Yokohama, Kanagawa

Location

Yokohama, Kanagawa

Total units

213 units
3,506 million
yen
3,770 million
yen
5.6％

Total units

157 units
3,160 million
yen
3,330 million
yen
5.5％

Acquisition priceAppraisal value
Appraisal NOI yield

Construction completion Feb 1994

Acquisition price
(*1）
（*2）

Appraisal value
Appraisal NOI yield

Construction completion March 1992

(*1）
（*2）

19

(note１) The appraisal value states the appraisal value as of January 31, 2021 as stated in the appraisal reports obtained by SAR. (note2) Appraisal NOI
Yield is calculated by dividing the Net Operating Income (NOI) stated in appraisal report by the acquired price with respect to asset to be assigned.

4. Operating results for the 10th fiscal period ended January 2021 (5)- Logistics Diversification of Current Contract Renewal Period (based on floor area)※（ ） Number of tenants
70,000 ㎡

10FP （Jan 2021）➢ No lease contracts expired during the period.し（５）

60,000 ㎡（４）50,000 ㎡（１）（２）

40,000 ㎡（２）

30,000 ㎡
20,000 ㎡
10,000 ㎡（２）（１）

0,000 ㎡
11期

11FP
2021年7月期
Jul 2021

12期
12FP
Jan 2022
2022年1月期

13期

13FP
2022年7月期
Jul 2022

14期
14FP
Jan 2022
2023年1月期

15期
15FP
Jul 2023
2023年7月期

16期以降
16FP
or after
2024年8月以降

11FP （Jul 2021)
1 tenant scheduled for lease contract renewal.
➢ The lease contract is expected to be renewed
under the same terms and conditions.
12FP （Jan 2022)
2 tenants scheduled for lease contract renewal.
➢ For 1 tenant, leasing terms are under negotiation
towards re-signing of fixed-term lease
contract.(Increase in rents have been agreed ）➢ For the other tenant, negotiations expected to takeplace going forward towards contract renewal.

Disposal of Funabashi Nishiura Logistics Ⅰ through asset replacement
Funabashi Nishiura LogisticsⅠ（Disposed）•••

Sale priceAppraised value
Appraised cap rateAge3,030 mm3,020 mm
5.1 ％
35.2 years(note1）(note2） •(note3）■ For Funabashi Nishiura Logistics I, conducted early leasing
activities and disposition activities at the same time
2020

A tenant is expected to move out at the end ofJanuary 2021, and for the fiscal period ending July 31,
2021, reductoin in profits has been foreseen also
taking into account new tenant leasing activity costs.

Jul

Aug

Sep

Leasing activities

For properties for which increase in life cycle costs(repair costs, capital expenditures) were foreseen,
assignees were sought utilizing the broad network ofStar Asia Investment Management.

Disposition activities

Even under situation where there was no tenant, theproperty was sold to a buyer who proposed a priceexceeding the appraisal value amount.

➢➢➢

As a replacement asset, acquired a family-type
residence in the Tokyo area which was expected tomaintain high occupancy and stable revenues evenamid the COVID-19 environment.

•

•

2021
Oct

Nov

Dec

Jan

Feb

Tenant expected to vacate the property
at the end of January
Sign assignment agreementon November 30.

Eliminate income reduction factors for the period ending July 2021.
Consider degree of contribution to income in the mid- to long-term.
Existence of a replacement asset (for acquisition) which has stable
income.

To Asset
Replacement

Conducted leasing activities aiming for reduction of down time and leasing the property
at an early stage
At the same time, began searching for potential buyers that would consider acquisition,even under the situation where a successor tenant has not been determined.

(Note 1) The appraisal value states the appraisal value as of July 31, as stated in the appraisal reports obtained by SAR. (Note 2) Appraisal NOI Yield is calculated by dividing the Net Operating Income (NOI) stated in appraisal report by the acquisition
price with respect to the asset to be acquired. (Note 3) For the years since completion, the number of years lapsed as of November 30, 2020 from construction completion is stated.

20

4. Operating results for the 10th fiscal period ended January 2021 (6)- Hotel Transition of gross rent amounts (index)/ rent systems/ causes of rent increases and decreases
Hotel rent Actual / Forecast (Indexation)＜Operating Results of 10th Fiscal Period andAssumptions for Financial Performance
Forecast＞◼ In the 10th Fiscal Period (ended Jan. 31,2021), rents received as agreed under thelease contract (fixed rent portion)◼ In the 11th Fiscal Period (ending July 31,2021) and the 12th Fiscal Period (ending
Jan. 31, 2022), rent revenues from
"KOKO HOTEL Osaka Namba" are notanticipated.
◼ From the 7 hotels other than the above, it
has been assumed that fixed rents arereceived as per agreement with thetenants.

＜KOKO HOTEL Osaka Namba＞• Fino Hotels which is a 100% subsidiary of
Kachikaihatsu Co. Ltd. (Star Asia Group) is
oprating 4 hotels (521 rooms) in the Osaka
area.
• Highly efficient management can be
expected through the sharing of humanresources and bulk orders of hotel
equipment etc.

Fixed
rent
固定賃料比率

120.0

100.0

1.9

8.2

Forecast■予想

Floating
rent
変動賃料比率

0.4

0.0

0.0

0.0

95.9

91.5

91.7

92.0

11FP
2021年7月期
第11期予想Jul
2021
Forecast

12FP
2022年1月期
Jan 2022
Forecast

80.0
60.0

100.0

101.2

7FP
2019年7月期
Jul
2019
第7期
第7期
Actual8FP
2020年1月期
Jan 2020
第8期
第8期
Actual

40.0
20.0
0.0

9FP
2020年7月期
Jul 2020
第9期
第9期
Actual10FP
2021年1月期
Jan
2021
第10期
Forecast※The index has been prepared by calculating fixed rent on the date of Jul 2019
Property nameAcquisition
PeriodFixed
Rent

Floating rent

R&B Hotel Umeda East

2016.4○－•

A tenant of former "Hotel WBF Art Stay Namba" hasfiled for application of the Civil Rehabilitation Act.

Smile Hotel Namba

2016.4○○•

Best Western Tokyo Nishi-kasai

2017.3○○

Best Western Yokohama

2018.8○○The lease contract with the relevant tenant has been
terminated by agreement. ～ A fixed-term building
lease agreement has been signed with Fino Hotels Co.
Ltd. which is a 100% subsidiary of Kachikaihatsu Co.
Ltd. of Star Asia Group, and at the same time theproperty name has been changed to "KOKO HOTEL
Osaka Namba".

•

Since the Declaration of Emergency was issued in
April 2020, at all of the hotels other than the above
mentioned hotel, there was a certain period ofaccommodation business suspension, and there aresome hotels whose business continues to besuspended even today.

•

Know the business condition of each hotel at all times,
and sincerely respond to requests for reduction or
exemption of rents etc. depending on the situation.

New operator

Fino Hotels Co., Ltd.

Contract

Fixed term building lease

Hotel WBF Fukuoka Tenjin Minami

2017.3○○Contract period

March 1, 2021 to February 28,
2031

Glansit Akihabara

2018.8○○Fee

Floating Fee（GOP×80%）

opening
preparation fee

2018.8○－9,000,000 yen

Best Western Tokyo Nishikasai
GrandeStart operation

discussions

KOKO HOTEL Osaka Namba

2018.8－○Impact of COVID-19

21

4. Operating results for the 10th fiscal period ended Jan 2021 (7)- Financial standing –◆ Achieved reduced LTV by the Merger 48.1% ⇒ 45.9%◆ In order to diverisify future funding methods, newly obtained R&I rating (A-) and conducted shelf registration for investment corporation bonds.
Main financial indicators (as of January 31, 2021)
8FP
Jan 2020

9FP
July 2020

SSR
July 2020

Bank formation (as of January 31, 2021)【Post-merger】
10FP
Jan 2021

LTV

47.0 ％

48.1 ％

46.2 ％

45.9 ％

Balance ofborrowings

51,580
million yen

54,320
million yen

29,200
million yen

82,440
million yen

Long-term debt ratio

100.0 ％

100.0 ％

83.2 ％

97.4 ％

2.1 years

2.3 years

1.2 years

2.2 years

4.4 years

4.4 years

3.8 years

4.5 years

0.64 ％

0.6 5％

0.80 ％

0.72 ％

85.8 ％

81.5 ％

62.0 ％

79.2 ％

Average remaining
period to maturity
Average borrowing
periodAverage interest rate
(note1)
Fixed interest rate
ratio

Balance（mln.）

LenderSumitomo Mitsui
BankingMizuho Bank
Shinsei Bank
Sumitomo Mitsui TrustBank
Aozora Bank
Resona Bank
The Nishi-Nippon CityBank
The Bank of Fukuoka
ORIX Bank Corporation
Mizuho Trust & Banking
MUFG BankThe Dai-ichi Life
Insurance
Total

Diversification of repayment dates (as of January 31, 2021)

Ratio（％）

22,86527.7

15,065
13,160

18.3
16.0

8,950

10.9

7,800
7,050

9.5
8.6

2,500

3.0

2,050
1,000
800
700

2.5
1.2
1.0
0.8

500

0.6

82,440100.0

Credit Rating(mln.）

Rating Agency

Rating & Remarks

Japan Credit Rating Agency, Ltd. (“JCR”)

Long-term Issuer Rating
A－(Stable)

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

Issuer Rating
A－(Stable)

18,00015,85016,000■Fixed14,000■Adjustable
固定 変動

12,0009,850

10,000

8,960

8,000

1,660

6,000
4,000

11,850
9,790

9,750
7,300

2,000

6,000

5,600

8,500

Submission of Shelf Registration Statement of Investment Corporation Bonds

7,300

4,840

Scheduled Amount to be
Issued100 billion yen

Scheduled Issuance
Period of the Bond

2 years from the effective date of shelf registration statement(From February 2, 2021 to February 1, 2023)

0
11FP
11期
2021/7

12FP
12期
2022/113FP
13期
2022/7

14FP
14期
2023/115FP
15期
2023/7

16FP
16期
2024/1

17FP
17期
2024/7

18FP
18期
2025/119FP
19期
2025/720FP
20期
2026/1(note１) The interest rates shown take into consideration the effects of interest rate swaps (fixing of interest rates).

22

4. Operating results for the 10th fiscal period ended Jan 2021 (8)- 6th and 7th asset replacements executed during the 10th fiscal period ◆ During the 10th fiscal period, consecutive asset replacements were conducted focusing on strengthening the portfolio.
◆ Implemented and upheld policy to "dispose of suburban-type commercial facilities" + shift to a portfolio which can be expected to generate
more stable revenues.
6th Asset Replacement

Implementation Policy for Asset Replacement
1.Future revenue contribution of the asset to be
replaced (strengthen SAR’s portfolio)

Acquisition
Urban Park
Tokiwadai Koen

2.Real estate market conditions by asset type
3.Level of the investment unit price of SAR

acquisition priceAppraised value
Appraised cap rate
Age

※Please refer to ”Supplementary Material Concerning Acquisition
and Transfer (Asset Replacement) of Real Estate BeneficiaryInterests in Trust” announced on July 23, 2018✓✓

＜ Effect of Consecutive Asset Replacement ＞✓

Disposition
Suroy Mall
Nagamine
3,506 mm3,770 mm
5.6 ％
26.5 years

Use of Preferential Negotiation Rights
In 2016, the common-use area and exclusive areas havebeen fully renovated, and the property is highly competitive.
In the surrounding area, there is a leafy park and the
Yokohama National University campus, and together with the
3LDK layout for all units, the property is highly appealing tofamilies (in particular households rearing children).

1. Towards a portfolio which will securestability of income.

✓✓

3,500 mm3,450 mm
5.8 ％
13.1 years(note1）(note2）(note3）

It is likely that the number of brick-and-mortar storesmay decrease in the mid- to long-term due to a
reduction in population in trade zones, and due to theadvance of e-commerce.
Find buyer candidates by utilizing the broad network ofStar Asia Investment Management Co., and achieve asale above the appraisal value (SAR’s acceptanceprice).

7th Asset Replacement➢ The ratio of residences within the portfolio toincrease by incorporating family-type
residences in the Tokyo area which are
believed to have high stability of income.

Acquisition
Urban Park
Mitsuike Koen

2. Eliminate short-term income reduction
factors, and increase current net income.

acquisition priceAppraised value
Appraised cap rate
Age

➢ In the fiscal period ended July 2021, thelogistics facility which was an income reduction
factor was sold and replaced two residential
properties with high profitability, expected toresult in an increase in current net income perunit for the same period.

Disposition priceAppraised value
Appraised cap rate
Age

(note1）(note2）(note3）✓✓✓

Disposition
Funabashi Nishiura
Logistics 1
3,160 mm3,330 mm
5.5 ％
28.7 years

Disposition priceAppraised value
Appraised cap rate
Age

(note1）(note2）(note3）Use of Preferential Negotiation Rights
In 2016, the common-use areas and exclusive areas have been
fully renovated, and the property is highly competitive.
The property has maintained a high occupancy rate even amid
COVID-19, and income stability is expected to remain at a highlevel, and it is believed that it will contribute to enhancement of
the portfolio.

3,030 mm3,020 mm
5.1 ％
35.2 years(note1）(note2）(note3）✓The current tenant is expected to vacate the property at theend of January 2021, and income is expected to decrease in
the period ending July 2021 also due to new tenant leasing
costs.

✓

Searched for a buyer for the property for which an increase inlife cycle costs (repair costs, capital expenditures) is expected,
utilizing the broad network of Star Asia Investment
Management.

(Note 1) The appraisal value states the appraisal value as of October 31, 2020 (for Urban Park Mitsuike Koen) and as of July 31, 2020 (for Funabashi Nishiura Logistics 1) as stated in the appraisal reports obtained by SAR. (Note 2) Appraisal NOI Yield is
calculated by dividing the Net Operating Income (NOI) stated in each appraisal report by the expected acquisition price with respect to the asset to be acquired, and by the acquired price with respect to asset to be assigned, respectively.
(Note 3) For the years since completion, the number of years lapsed as of November 30, 2020 from construction completion is stated.

23

5. New Mid-term Business Plan

24

5. New Mid-term Business Plan (1)Setting Mid-term Objectives◆ Ten fiscal periods (approximately 5 years) have passed since listing and we will now outline and clarify our new mid-term
objectives through to 2026. We hope to meet these targets with the unwavering resolve the Star Asia Group is known for

Asset Size (Target) ： JPY

300 billion

Indicative number of properties 100

Distribution Per Unit （Target） ： JPY

1,600 or more

Growth objective of 2% per annum

External Growth Strategy～ Targeting 100 buildings/ JPY 300 billion

Internal Growth Strategy～ Profit improvement measures➢ Considering various initiatives for external growth➢ Further strengthen cooperation with sub-sponsors（NIPPON KANZAI Co., Ltd. and Tokyo CapitalManagement Co., Ltd.）.( including support for the following
measures)＜Sponsor pipeline＞➢ Current assets under management of managed funds:
Approximately JPY 101.2 billion➢ Star Asia Group is also focused on development projects➢ Continue activities in the Japan real estate market going forward＜Unique network of the asset management company＞➢ Actual acquisitions to date: Approximately JPY 21.5 billion＜Asset replacements＞➢ Actively execute asset replacements in opportunistic manner,in accordance with the asset replacement policy＜ Profit improvement measures＞➢ Aggressively capture in the office portfolio＜ Cost reduction measures ＞➢ Reduce costs utilizing economies of scale➢ Reconstruct a property management system tailored to theportfolio structure.
➢ Optimize costs and capital expenditures

Strengthening the Management Structure (Asset Management Company)～ Further alignment of invest with investor to maximize value ～➢ Establishment of Sustainability Promotion Division⇒ 1. Repair costs / capital expenditures
2. Strengthening of efforts towards ESG related initiatives➢ Change of Structure of Asset Management Fees

⇒ 1. Reduce ratio of asset-based management fees
2. Increase ratio of fees linked to NOI and DPU
25

5. New Mid-term Business Plan (2)Efforts towards future external growth (pipeline status)◆ Gather property information and build up the property pipeline, by utilizing Star Asia Group's property holdings and the asset managementcompany's unique network.
◆ Going forward, continue to aim for expansion of asset size, mainly focusing on the pipeline from Star Asia Group which is continuing topurchase real estate properties.
Properties with Preferential Negotiation Rights and Star Asia Group’s Pipeline➢ The pipeline of properties for which we hold rights of first refusal range from properties which are stably operated and can be immediately
incorporated into our profile to properties which are under development. The pipeline will contribute to future increase in asset size.
Properties with Preferential Negotiation Rights
OHA Building (note2)
Expanded Tokyo Area

City Heim Kamezawa

OfficeTokyo Area

Residential

Total Appraisal：
Nishi-Ikebukuro
1-Chome bldg.

Miyamae-ku, Kodai（note3）
Tokyo Area

Residential

Tokyo Area

RetailURBAN CENTER
HakataOther Area

JPY24.0bn(Note 1)URBAN CENTER
Midousuji

OfficeOther Area

OfficeTokyo Area

Schedules to be completed by June 2021

Other Properties Managed by the Sponsor Group (as of Jan 31,2021)
Total Appraisal Value:

JPY101.2bn
KAMIKITA HOUSE

office,15.1%

Hotel,
44.4%

Tokyo Area

Student Housing

KAMIKITA HOUSETokyo Area

Student Housing

Other,
38.6%
101.2 bn

Logistics, 3.6%

101.2 bn

Residential, 36.9%

Tokyo,
61.4%(Note 1):As of the date of this document, among the properties with priority negotiating rights held by SAR, the total amount of the price is indicated for properties for which a priority negotiating price has been determined, and the total amount of the most recent
appraisal value or survey price is indicated for properties for which a priority negotiating price has not been determined.
(Note 2): “Expanded Tokyo Area” stands for suburban Tokyo (outside 23 wards) and major cities in Kanagawa (excluding Kawasaki -shi and Yokohama-shi) and Saitama for offices and retail properties.

26

6. Initiatives on ESG

27

6. Initiatives on ESG (1)Policy and Organization◆ A "Sustainability Promotion Division" has been established o strengthen our ESG related efforts◆ A "Sustainability Promotion Committee" has been organized in order to clarify responsibilities related ESG initiatives and to
discuss and decide on various measures and policies.

Formulation of ESG Policy and Sustainability Promotion System Rules and Establishment of the Organization<ESG Policy> introduction Our Company, as a member of the Star Asia Group, shares its Investment Philosophy and Guiding Principles. Furthermore, as the asset management company forStar Asia Investment Corporation, we engage in the real estate investment management business while giving consideration to the environment, society, and governance (hereinafter, collectively
referred to as “ESG”) in order to enhance corporate value and exert comprehensive competitiveness while pursuing long-term sustainability and recognizing the role Star Asia Investment
Corporation has been given in society in accordance with our basic philosophy of "Client First".

1

Action towards Climate Change

2Consideration towards Resource Circulation,
Water Use, and Biodiversity

3

Pursuit of Health, Safety, and well-being

4

Securing and Developing Human Capital

5

Stakeholder Engagement

6

Establishing and Organizing a Governance
SystemNew organization of the asset management company

Sustainability Promotion
System Rules

ESG Policy➢ In order to implement the "ESG Policy", theRules were established to prescribe basic
policies etc. for the following sustainability
related items.

Shareholder’s Meeting
Corporate Auditor
Bord of Directors Meeting
Sustainability Promotion
Committee

Compliance Committee

1. Establish various policies

Investment Committee
President and CEO

2. Internal organization of the asset
management company
3. Cooperation with relevant external
parties and information disclosure

Compliance Officer
Investment Management
Division

Sustainability Promotion
Division

Finance Management
DivisionE(environment) related numerical goals and roadmap
Goal
Year

Standard Year

New organization begins――

Prepare to participate the GRESB Real Estate

2021

―

Prepare a road map and decide on target figures, and commence initiatives
based on them.
As a part of these efforts, add a green lease clause in the lease agreements.

GHG emissions――

CO2 emission basic unit - reduce by 1% from preceding year.

Energy consumption――

Energy consumption per unit - reduce by 1% from preceding year.

Water resource management

―

2019

Do not allow increase.

Waste management

―

2019

Do not allow increase.

GHG emissions

2030

2019

CO2 emission basic unit - reduce by 10% from Standard Year.

Energy consumption

2030

2019

Energy consumption per unit - reduce by 10% from Standard Year.

Item

2021

Shortterm
goals

Midterm
goals

Goal

Executive
Officer in chargeof Sustainability
General Manager of
Sustainability
Promotion Division

Tetsuya Makino
Has experience in bidding in auctions, budget
management, and quality control for new
construction works and projects for introducing
energy saving facilities etc. Also has abundant
experience in environmental DD, retrocommissioning, and energy management
support. Qualified as architectural equipment
engineer, top level verification chief for the Tokyo
environment improvement ordinance, level 1
piping construction management engineer, etc.

28

6. Initiatives on ESG (2)Environmental /Governance initiatives◆ During the Fiscal Period ended January 31, 2021, newly obtained DBJ Green Building Certifications for 2 buildings.In the 2021, participatedin the GRESB Real Estate Assessment.

Environmental initiatives◆Received Environmental Certification

6

property◆Signing of Green Lease contracts

Percentage of total floor area

32.2

◼ Established policy for green lease
contracts and added green leaseclauses for 2 office tenants and 2 hotel
tenants.
◼ We plan to add the same clause where
possible going forward.

％

Property nameIwatsuki
Logistics

Baraki
Logistics

La Park
Kishiwada

Honmachibashi
Tower

Urban Park
Daikanyama

Seiyu
Minakuchi

Asset type

Logistics

Logistics

RetailOfficeResidence

RetailTotal floor area

29,729.72 ㎡

12,471.50 ㎡

65,663.02 ㎡

15,407.83 ㎡

8,261.29 ㎡

31,829.71 ㎡

47,323.17
tenant㎡

・Minami-Azabu Shibuya Building
・Takadanobaba Access
・R&B Hotel Umeda East
・KOKO HOTEL Osaka Namba

Social initiatives◆Digital Signs in Elevator Halls
Digital signs were installed in the elevator halls
which are common areas of the property, in orderto enhance tenant satisfaction. The signage
displays various news, information about thebuilding facilities, and advertisements etc.
Subject properties: currently 9 properties.
We plan to consider installing digital signage toother properties where possible.

◆Initiatives towards employees◼ Diversity / Inclusion◼ Introduced various systems in order to care for the health of
employees.
• Work-from-home system/ promote staggered commuting• Superflex• Child-birth leave/child-care leave/ nursing care leave etc. /Reduced working hours• Conduct employee satisfaction surveys

29

6. Initiatives on ESG (3)GovernanceDecision-making process

Same boat investment◼ Implement decision-making with high transparency by complying with laws
and regulations◼ Aligning the interests of the Sponsor Group with those of theunitholders by holding 14.8% of the investment units of the Sponsor
Group◼ Members of the Asset Manager also hold investment units◼ Maintain a high sense of ethics and execute operations as a manager ofinvestors’ funds

Department
ProposalCompliance Officer
Review and approval

ReturnInvestment Committee (including external directors)
Review and approval

Rejected

Compliance Committee (including external directors)
Review and approval

Rejected

Star Asia Group◼ Continue to hold investment units since thetime of listing.
Number of◼ Holdings in investment units have increased
investment
units held in
given the merger with SSR.
◼ Additional acquisition of investment units made same-boat investment:
at appropriate timing. Total of 6 companies inunits
Star Asia Group is 247,765 units.

247,765◼ The individual founder of the Group holds totalof 444 investment units.

Holding ratio:

14.8 ％

Board of Directors
Rejected
Items that do not need to be
discussed at the Compliance
Committee
Items that need to be
discussed at the Compliance
Committee

Review
andapproval

SAR’s Board of
Directors Meetings

Unapproved

Fee Structure◼ Regarding the composition of asset management fees, changes were made to reduce theproportion of On-going Fees I and to increase the proportion of On-going Fees II(applied from the Fiscal Period ending July 31, 2021).
On-going fees I

Amount calculated by multiplying a separately agreed rate, capped at the total
managed asset valuation amount x 0.3%.

On-going fees Ⅱ

Rate capped at DPU before deduction of On-going Fees II x NOI X 0.002%.

Acquisition fee

Acquisition cost x 1% (0.5% if acquired from an interested party)

Transfer fee

Transfer price x 1% (0.5% if transferred to an interested party)

Merger fee

Total amount of assets etc. held by the counterparty x 1% (0.5% in the case ofmerger with an interested party)

Management team of the Asset Manager (as of January 31, 2021)◼ Holding SAR’s investment units through the cumulative investment systemfor employees◼ High commitment by management （Total : 617 units)

Employees of Star Asia Investment Management Co., Ltd.

◼ Holding SAR’s investment units through the cumulative investment systemfor employees30

6. Initiatives on ESG (4)GovernanceStar Asia Group’s Code of Conduct
Star Asia, the sponsor of Star Asia Investment Corporation, is a non-listed independent investment management group which invests mainly inJapanese real estate-related assets and whose main goal is supplying investors with excellent returns
Star Asia Investment Corporation and Star Asia shall share the same long-term vision in accordance with the Star Asia Group’s Code of
Conduct, shall be a leading Real estate investment management group in Japan and shall persistently endeavor to continue to be such
The Code of Conduct is as follows:1

Client FirstWe are rewarded only when we
consistently meet and exceed ourinvestor clients’ expectations for the
mandates they have given to us.

5

Collaborative
andCooperative Culture

We succeed only when we work
together by fully utilizing our collective
strengths in a cooperative manner toserve our investor clients. The group’s
performance always exceeds the sum of
our individual performances.

2

Highest EthicalStandards andIntegrity

We always abide by the highest ethicalstandards and integrity. Unethicalactions by an employee could easily
destroy the group’s long-standing
reputation and trust.

6

Adaptability

We stay nimble, proactive and critical,
allowing us to adjust quickly as themarket environment changes in order tocontinue to be a successful leader in themarket where we do business.

3

Creativity

We utilize our experience, persistence,and creativity to identify and monetize
investment opportunities which may not
be immediately apparent to ourcompetitors.

7

Meritocracy

We reward our employees for their
specific personal performance as well as
their contribution to the group and toinvestor client performance.

4

Respect for Others

We treat our investor clients, employees,
trade counterparties, and vendors withthe utmost respect, and always strive to
be trustworthy partner.

8Endless PursuitofExcellence

We will tirelessly pursue excellence not
only for our investor clients but also for
ourselves.

31

7. Appendix

32

About Star Asia Group
Taro Masuyama
Co-Founder andManaging Partner

Malcolm F. MacLean IV
Co-Founder andManaging Partner

Star Asia Group is a privately owned, independent investment management group that focuses on investments in Japanese real estate
related opportunities.
• Concepted in 2006, Star Asia Group has invested over JPY837 bn since its foundation in 2007.
• Star Asia Group has 341 officers and employees including over 50 investment and asset management professionals based in Tokyo or
New Jersey, USA.1• We always operate under the Guiding Principles which continuously drive the group to become and remain as one of the leading realestate investment management firms in Japan.
• The group’s strong track record and long-term partnership approach with our investors have been integral in attracting significant
capital from sophisticated global investors, including large U.S. university endowments and foundations, Japanese and European
pension funds, U.S. and Asia based family offices as well as other global real estate investors.
• The group is committed to its disciplined Investment Philosophy and SAR strives for its most important goal of meeting and exceeding
unitholders’ expectations.

Star Asia Group
Listed J-REIT
Asset manager

Private placement
fund management

Star Asia
Management
LimitedStar Asia
Investment
Management Co.,Ltd.

• Registered as an
Investment Advisor
with the US Securities
and Exchange
Commission• Manages multiple
private placement
funds through sistercompanies
Provides know-how
contributing to SAR’sinternal and external growth
as its sponsor

Star Asia
Investment
Corporation• Support of Construction
Management
Department• Provides advice basedon abundant experience
in real estate-related
debt investment• Provides additional
resource as needed

Asset management

Private placement
fund

Unlisted investment company

Star Asia Capital Corp Limited

Star Asia Asset
Advisors Co., Ltd.
• Asset management
and brokerage forprivate placement
funds; real estate
asset and trust
beneficiary interest
brokerage; andproperty management.

Lion Partners GK

Star Asia Japan
Special Situations
LP

Star Asia Sogo
Kaihatsu Co., Ltd.
• Star Asia Group’s realestate development
company• Star Asia Group’s
flagship fund
• Actively investing
based on its
investment capacity• Currently develops
multiple properties
Asset management of
warehousing funds andprovides support fororigination of bridge
funds

Holds SAR’s investment
units

Holds SAR’s investment
units

Currently develops
properties withpreferential negotiationrights owned by SAR• Urban Center Hakata

Development andoperation of newgeneration student
accommodation

GSA Star Asia KK• A 50/50 joint venturewith GSA Group, a
global pioneer inpurpose built student
accommodation (PBSA),
that develops andoperates new-generation
PBSA• Following the first
property (HAKUSAN
HOUSE), developed thesecond (KAMIKITAHOUSE)

Provided over JPY90bn
properties (based on
SAR’s acquisition price)
to SAR since SAR’slisting

Currently operates
properties withpreferential negotiationrights owned by SAR• Urban Center
Midousuji• KAMIKITA HOUSE• Nishi-Ikebukuro 1Chome bldg.

• HAKUSAN HOUSE

Development andoperation of hospitality
properties; listed

Kachikaihatsu Co.,Ltd.
• Listed on TSE 2nd
Section （3010）;
develops andoperates hotels• Star Asia Group
became a sponsor in
Nov. 2018 and holds
75.65% of issued
stock

Under the business
partnership agreementwith Star Asia Group, thecompany provides to
SAR information on saleof properties as adeveloper and operatorof hotels

Star Asia Group with expanding business provides strong support to SAR
1. As of December 31, 202033

Investment Philosophy of Star Asia GroupThe Group intends to strictly adhere to its investment philosophy, and to meet the expectations of investors andcontinue to exceed such expectations. This is our largest objective
1

Research Focus

We believe that consistent outperformance canonly be achieved when investment opportunities
identified through our rigorous origination process
are validated against the comprehensive
understanding of the ever-changing market
environment. Government policies, macroeconomic
environment, state of capital markets, trends in
demographics,
realestatesupply/demand
dynamics, status of the real estate market cycle,
outlook and appetite by potential tenants, as wellas anticipated behavior of other market participants
are only a few of the critical inputs we analyze. In
order to formulate and continually update ourunderstanding of the current market environment,
we run iterative processes of gathering feedback
from our day-to-day investment and asset
management activities, which are supplemented byvarious third-party research reports and data that isfurther investigated and verified by us to generate
our unbiased view.

4

Specialization

We believe deliberate specialization and a flatorganization allow us to identify, properly structure,and dependably execute attractive, but often
complex,investment
opportunities.
This
specialization leads us to more predictable successand sets us apart from our competitors. Our seniorprofessionals have years of hands-on experience
in real estate deal sourcing, underwriting,structuring, asset management, financing, capital
markets, and securitization. Star Asia’s seniorprofessionals have developed deep-rooted local
relationships over multiple real estate cycles, andhave executed some of the most creative andcomplex investment opportunities in the market.

2

Market Inefficiencies

Unlike highly efficient foreign exchange, interest
rate and public equity markets, the Japanese andother Asian private real estate markets are
inherently inefficient. Although Tokyo is the world’s
largest metropolis in terms of population(approximately 35 million), GDP, and real estate
capital values, in our opinion, it is significantly lessefficient than the U.S. or U.K. markets. The
Japanese real estate market has high barriers-toentry, asymmetric information flows, a lessdeveloped securitization market, and a limited
universe of well-capitalized opportunistic market
participants, which together creates market
inefficiencies. We believe that thorough robust
analysis and deep local relationships combinedwith our significant hands-on experience allow us
to identify and capitalize on these market
inefficiencies that are not obvious to ourcompetitors.

5

Risk Control

Our objective is to achieve consistent and superiorrisk-adjusted returns by only assuming wellcalculated risks. When a potentially attractive
investment opportunity is identified, we examine all
the risks associated with the potential opportunity
through our rigorous review process. We thennegotiate with the counterparties to determine afair risk-sharing arrangement while formulating
structural solutions to eliminate or mitigate otherrisks, where possible. Concurrently, we conduct
quantitative and qualitative analyses to evaluate
the viability of the potential investment opportunity
against our strict underwriting criteria.

3

Maximizing and Unlocking
Value

The real estate properties that we evaluate forinvestment are typically not operated to theirmaximum potential at the time of our investment.
Some owners are not professional real estate
investors, failed to invest necessary capital
expenditures, and/or had poorly managed leasing
strategies. Some real estate properties havecertain compliance issues that can be cured withlimited cost and time, or have potential to generatehigher net operating income if repositioned or
repurposed properly. We utilize our own
experience along with technical advice from thirdparty professionals, as necessary, to formulate andexecute the optimal asset management, capital
expenditures, renovation, and repositioning plans.
Implementation of these plans will maximize andunlock the property’s intrinsic value in the mostefficient manner from a cost and time perspective.

6

Dependability, Transparency
and Decisive Action

Our trade counterparties know that they candepend on us when they need to sell their realestate related assets quickly, discreetly and/or
through a complex structure that others may not beable to handle or understand. We are always
candid and transparent by clearly explaining ourrequirements up front including expected deal
economics, our strict due diligence process, andthen work tirelessly and creatively to meet thecounterparty’s specific objectives and timing. Ourflat organization and highly efficient, decisionmaking process allows us to be very flexible,
tactical and decisive. This philosophy andexecution style are valued by our trade
counterparties who repeatedly bring attractive
investment opportunities that reward our clientswith outsized returns.

34

Status of Unitholders
at the End of 10th Fiscal Period ended January 2021
Number of investment units by attribute: Total 1,674,389 units
End of 10th FP

End of 9th FP

Unitholders' register

Category
No. ofinvestment units

List of major unitholders (Top 10)

Ratio

No. ofinvestment units

Ratio

No. ofinvestment units

Ratio

Individual

166,12430.7%

526,68831.5%

526,688

36.9%

Financial
institution

142,98526.4%

470,41828.1%

470,418

32.9%

Domestic
corporation

15,9012.9%

105,042

6.3%

63,1094.4%

Foreign

206,39338.2%

518,686

31.0%

312,854

21.9%

Securities
company

9,421

1.7%

53,555

3.2%

53,555

3.7%

Total

540,824100.0%

1,674,389

100.0%

Unitholder nameSponsor Group is excluded

1,426,624

Number ofinvestment units

Holding ratio

1

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

155,507

9.3%

2

Custody Bank of Japan, Ltd.
(Trust Account)

125,469

7.5%

3

NORTHERN TRUST CO. (AVFC) RE UKDU
UCITS CLIENTS NON LENDING 10 PCT
TREATY ACCOUNT

75,957

4.5%

4The Nomura Trust and Banking Co., Ltd.
(Trust Account)

63,894

3.8%

4Star Asia Capital Ⅰ LLC

48,3902.9%

4Star Asia Capital Ⅱ LLC

48,3902.9%

4Star Asia Capital Ⅲ LLC

48,3902.9%

8Star Asia Capital Ⅳ LLC

48,3902.9%

9

Custody Bank of Japan, Ltd.
(Security Trust Account)

43,316

2.6%

10

Lion Partners GK

41,9332.5%

100.0%

Number of unitholders by attribute: Total 28,837
End of 10th FP

End of 9th FP

Unitholders' register

Category
No. ofinvestment units

Ratio

No. ofinvestment units

Ratio

Sponsor Group is excluded
No. ofinvestment units

Ratio

Individual

17,68297.2%

28,124

97.5%

28,124

97.6%

Financial
institution

36

0.2%

40

0.1%

40

0.1%

Domestic
corporation

277

1.5%

408

1.4%

407

1.4%

Foreign

172

0.9%

237

0.8%

230

0.8%

Securities
company

20

0.1%

28

0.1%

28

0.1%

Total

18,187100.0%

28,837100.0%

28,829100.0%

Total

699,636

Star Asia Capital Ⅰ～Ⅳ LLC 、Lion Partners GK are Sponsor Group.

41.8%
35

Change in business results since 5FP(Unit: million yen)
5th FP(ended Jul. 2018)
actual

6th FP(ended Jan. 2019)
actual

7th FP(ended Jul. 2019)
actual

8th FP(ended Jan. 2020)
actual

9th FP(ended Jul. 2020)
actual

2,791

3,224

3,344

3,200

3,314

5,618

5,648

+29

Office rent

862

1,104

1,134

1,145

1,163

1,890

1,895

+4

Retail rent

-

-

-

-

-

923

848

△74

Residence rent

500

458

438

439

512

814

889

+75

Logistics rent

906

912

910

817

887

993

974

△18

Hotel rent

287

447

500

477

445

423

423

-

235

302

349

320

306

573

616

+42

607

678

798

769

741

1,583

1,550

△32

2,184

2,545

2,535

2,431

2,573

4,035

4,097

+62

355

409

415

420

432

632

628

△4

1,828

2,135

2,119

2,011

2,141

3,402

3,469

+66

18

22

20

21

25

24

24

+0

-

-

7

6

7

-

5

+5

-

598

422

-

648

970

993

+23

-

19

+19

Lease business revenue

Other
Expenses related to rent
business(Depreciation is excluded)
NOI
Depreciation
Rent revenues/expenses
Mezzanine
TK distribution
Gain on sale of real estate
property

10th FP
10th FP(ended Jan. 2021) (ended Jan. 2021)
forecast*
actualLoss on sales of real estate property

Comparison with
forecast

270

349

344

316

690

1,151

1,096

△55

1,576

2,406

2,225

1,721

2,131

3,245

3,376

+130

Non-operating income

0

0

0

1

3

-

4

+4

Non-operating expenses

270

333

261

227

278

468

469

+1

1,305

2,073

1,965

1,494

1,857

2,777

2,911

+133

-

-

-

-

-

8,893

8,891

△2

1,305

2,049

1,964

1,493

1,857

11,67011,801+131

Cash distribution per unit

2,773円3,720円

3,625円

2,788円

3,436円

1,658円

1,676円+18円

FFO per unit

3,529円

3,440円

3,620円

3,539円

3,033円

6,768円

6,841円

+73円

113

151

155

141

140

9,034

9,135

+101

SGA
Operating income

Ordinary income
Extraordinary income

Net income

Balance of Internal reserves* September 14, 2020 Announced in 9th FP closing of accounting report36Balance Sheets for the 10th Fiscal Period ended January 31, 2021
9th fiscal period(As of July 31, 2020)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
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

2,303,632
3,915,644
49,312
119,529
10,3896,398,507

3,565,028
7,515,934
82,348
188,497
9,208
11,361,017

34,100,500(2,933,446)
31,167,053
18,395(2,990)15,40555,823(12,054)
43,76846,277(13,817)

114
(14)
100
49,326,896(3,460,097)
45,866,798
20,635(3,671)
16,96473,226(14,997)
58,22847,023(16,360)

Tools, furniture and fixtures in trust, net

32,46030,66370,619,311
101,877,998

117,051,893
163,024,648

3,459,138
3,459,138

4,082,300
4,082,300

853,350
300,000
135,723
10,782
1,299,856
106,636,993
113,035,501

756,206
300,000
245,057
20,5191,321,782
168,428,731
179,789,748

Land in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Lease and guarantee deposits
Total investments and other assets
Total non-current assets
Total assets(Unit: thousand yen)

10th fiscal period(As of January 31,
2021)

9th fiscal period
10th fiscal period(As of July 31, 2020) (As of January 31, 2021)
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unitholders’ capital surplus
Unappropriated retained earnings (undisposed
loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

337,786
14,040,000
417,355
12,748605
48,276698,166
17,332
15,572,270

621,461
2,150,000
22,660,000
541,206
43,534605
252,480
835,11330,58827,134,990

40,280,000
6,595
2,429,860
132,189
42,848,645
58,420,916

57,630,000
6,142
5,197,022
221,075
63,054,239
90,189,230

52,745,966

52,745,966

1,998,562

25,132,218

1,998,562
54,744,528

37,074,231
89,820,197(129,943)(129,943)
54,614,584
113,035,501(219,679(219,679
89,600,518
179,789,748

11,942,013

37

Statement of Income for the 10th Fiscal Period(From August 1, 2020 to January 31, 2021)(Unit: thousand yen)
9th fiscal period(As of July 31, 2020)

10th fiscal period(As of January 31, 2021)

Operating revenue
Lease business revenue
Other lease business revenue
Gain on sales of real estate property
Other revenue
Total operating revenue
Operating expenses

3,122,781
192,129
648,585
32,582
3,996,079

5,259,516
389,105
993,574
29,933
6,672,130

Expenses related to rent business

1,173,882

2,179,316

252,533
28,0532,400
303,222
104,149
1,864,242
2,131,837

19,285405,30347,4272,400
448,870
192,798
3,295,402
3,376,728

Loss on sales of real estate property
Asset management fee
Asset custody and administrative service fees
Directors’ compensations
Merger expenses
Other operating expenses
Total operating expenses
Operating income
Non-operating income

25

51

1,131
1
2,816
3,975

4,111
1
0
4,164

172,539
105,551
278,091
1,857,721

299,303
170,497
469,801
2,911,090
8,891,236
8,891,236
11,802,327
605
605
11,801,722

Retained earnings brought forward

1,857,721
605
605
1,857,116
141,446

Unappropriated retained earnings (undisposed loss)

1,998,562

11,942,013

Interest income
Reversal of unpaid distribution
Interest on refund
Gain on donation of non-current assets
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on negative goodwill
Total extraordinary income
Income before income taxes
Income taxes - current
Total income taxes
Net income

140,29038

Portfolio List (as of January 31, 2021)
Property nameLocation

2,973
6,065
1,763
2,042
6,320
2,286
1,450

3,020
6,760
2,500
3,220
7,790
2,630
1,540

1.8
3.6
1.1
1.2
3.8
1.4
0.9

2,580

2,690

1.5

4.7
5.1
6.6
5.8
5.0
5.2
4.7

Property nameAcquisitionpriceLocation

Appraisal
Investmen Appraisal
value att ratio
NOI yield
end of(%)(%)(note1)
9th FP

4.2
2.1
4.7
2.8
0.8
0.5
1.7
1.0
0.4
18.2
1.2
1.1
2.3
1.9
1.2
1.5

4.8
5.7
5.3
4.2
5.7
7.0
5.5
6.5
6.8
5.2
5.4
4.3
4.3
4.5
4.4
3.9

1,020

1,160

0.6

4.1

R&B Hotel Umeda East

Osaka City, Osaka

Shinjuku Ward, Tokyo

11,200
5,350
4,590
3,990
2,780
2,400
2,300
1,510
68,059
5,400
6,550
3,320
15,270
2,045
6,315
1,490
1,460
1,186
1,550
1,167
1,810
1,430
2,470
2,150
993
1,740
3,506
3,160
32,472

11,200
5,360
4,590
3,970
2,790
2,370
2,310
1,510
72,800
5,210
6,540
3,310
15,060
2,500
8,450
1,630
1,510
1,190
1,640
1,180
1,890
1,530
2,460
2,210
990
1,760
3,770
3,330
36,040

6.7
3.2
2.8
2.4
1.7
1.4
1.4
0.9
40.8
3.2
3.9
2.0
9.2
1.2
3.8
0.9
0.9
0.7
0.9
0.7
1.1
0.9
1.5
1.3
0.6
1.0
2.1
1.9
19.5

3.7
3.8
3.9
4.1
3.8
4.0
4.8
4.0
4.5
7.1
5.8
7.4
6.6
4.4
4.7
5.4
4.6
5.0
5.7
4.7
4.8
4.7
5.7
5.3
5.4
3.7
5.6
5.5
5.0

Smile Hotel Namba

Osaka City, Osaka

Best Western Tokyo Nishi-kasai

Edogawa Ward, Tokyo

Best Western Yokohama
Hotel WBF Fukuoka Tenjin Minami

Yokohama City, Kanagawa

GLANSIT Akihabara

Chiyoda Ward, Tokyo

Best Western Tokyo Nishikasai
GrandeEdogawa Ward, Tokyo

3,180

3,130

1.9

4.0

KOKO HOTEL Namba

Osaka City, Osaka

Subtotal

2,000
20,5441,450
19,400

1.2
12.3

3.7
4.3

Total

166,710 175,821

100.0

4.9

Nishi-Shinjuku Matsuya Building

Shibuya Ward, Tokyo

Shibuya MK Building

Shibuya Ward, Tokyo

Asahi Building

Yokohama City, Kanagawa

Hakata-eki East Place

Fukuoka City, Fukuoka

Nihonbashi Hamacho Park Building
Amusement Media Gakuin
HonkanHigashi Kobe Center Building
Amusement Media Gakuin
ShinkanSeishin Building

Chuo Ward, TokyoNK Building

Chiyoda Ward, Tokyo

Tsukasamachi Building

Chiyoda Ward, Tokyo

Takadanobaba AccessShinjyuku Ward, Tokyo

Azabu Amerex Building

Minato Ward, Tokyo

Hiei-Kudan Building

Chiyoda Ward, Tokyo

Shin-Yokohama Nara Building

Yokohama City, Kanagawa

The Portal Akihabara

Chiyoda Ward, Tokyo

Shibuya Ward, Tokyo
Kobe City, Hyogo

Subtotal

Retail

La Park Kishiwada

Kishiwada City, Osaka

Suroy Mall Chikushino

Chikushino City, Fukuoka

Seiyu Minakuchi

Koka City, Shiga

Sub total

Residence

Urban Park Azabujuban

Minato Ward, Tokyo

Urban Park Daikanyama

Shibuya Ward, Tokyo

Urban Park Namba

Osaka City, Osaka

Urban Park Gokokuji

Toshima Ward, Tokyo

Urban Park Kashiwa

Kashiwa City. Chiba

Urban Park Ryokuchi-koen

Suita City, Osaka

Urban Park Koenji

Suginami Ward, Tokyo

Urban Park Ichigao
Urban Park Gyotoku

Yokohama City, Kanagawa
Ichikawa City, Chiba

Shiroi Logiman

Shiroi City, Chiba

Urban Park Sekime

Osaka City, Osaka

Urban Park Imazato

Osaka City, Osaka

Urban Park Yoyogi
Urban Park Azabujuban

Shibuya Ward, Tokyo
Minato Ward, Tokyo
Shibuya Ward, Tokyo

7,440

4.0

7,390

4.5

5.7

Iwatsuki Logistics

Saitama City, Saitama

Yokohama Logistics

Yokohama City, Kanagawa

Funabashi Logistics

Funabashi City, Chiba

Baraki Logistics

Ichikawa City, Chiba

Tokoyozawa Logistics

Tokorozawa City, Saitama

Funabashi Nishiura Logistics I

Funabashi City, Chiba

Funabashi Nishiura Logistics II

Funabashi City, Chiba

Matsubushi Logistics

Kita-Katsushika-gun, Saitama

Funabashi Hi-Tech Park Ⅰ

Funabashi City, Chiba

Subtotal

Hotel

Osaka City, Osaka

Logistics

Office

7,310
4,120
8,660
4,880
1,380
850
2,910
1,710
701
32,521
2,250
1,400
3,610
3,190
1,930
2,440

Shibuya Ward, Tokyo

Minato Ward, Tokyo

Honmachibashi Tower

Subtotal

Appraisal
Investmen Appraisal
value att ratio
NOI yield
end of(%)(%)(note1)
9th FP

6,942
3,560
7,875
4,700
1,300
821
2,755
1,710
702
30,365
2,069
1,750
3,827
3,248
1,970
2,500

Minami-Azabu Shibuya Building

Urban Park Daikanyama

Acquisitionprice

Fukuoka City, Fukuoka

Period-end appraisal value：

175,821 million yen

Total book value：

167,106 million yen

Period-end unrealized gains (losses)：

8,714 million yen

Net assets per unit：

53,512 yen

Unrealized gains per unit：

5,204 yen

NAV per unit (*1)：

57,040 yen

P/NAV per (*2)

：

0.84

(*1) NAV per unit = (Period-end net assets + Period-end unrealized gains – Total cash
distribution) / Total number of investment units issued and outstanding (*2) P/NAV per ＝
Investment unit price / NAV per unit (Investment unit price on January 29, 2021: 47,950 yen)（note1） “Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of the property in the real estate appraisal report, rounded to the second decimal place.

39

Other assets under management (as of January 1, 2021)＜ Mezzanine loan debt investment＞
Number

Type※：The base interest rate : JBA 3-month yen TIBOR

Name of the security（asset overview）

Period-end
book value(million yen)

Underlying asset, etc.
Asset nameLocationInterest rate (※)

MEZ-01

Mezzanine(Subordinated bonds)

Star Asia Mezzanine Loan
Debt Investment Series 1

400

Relief Premium Haneda

Ota Ward,
Tokyo

Base rate +5.0%

MEZ-03Mezzanine(Subordinated Beneficiary Interest)

Star Asia Mezzanine Loan
Debt Investment Series 3

123

The Royal Garden Residence
Shirokanedai

MinatoWard,
Tokyo

Base rate +5.0%

MEZ-04

Mezzanine(Subordinated loan claims)

Star Asia Mezzanine Loan
Debt Investment Series 4300

DS Kaigan Building

MinatoWard,
Tokyo

Base rate +5.0%

150

Sanmaison Ohorikoenkita

Fukuokacity,
Fukuoka

Base rate +5.0%＜Silent partnership equity interest＞
MEZ-05

Mezzanine(Subordinated Beneficiary Interest)

Star Asia Mezzanine Loan
Debt Investment Series 5

Total

973

＜ Silent partnership equity interest＞
NumberInvestments securities

Period-end bookvalue (million yen)

TKI-02

GK SAPR7 silent partnership equity interest

69

Total

Underlying asset, etc.
Property name

OHA Building

Location

Tachikawa city, Tokyo

69

40

Balance of Payments of Individual Properties (1)Disposed
Asset Type
Property nameAcquisition priceAppraisal value
Structure/Floors
Location

OFC-01
Minami-Azabu Shibuya
Building

OFC-05

OFC-06

OFC-08Alphabet Seven

Shibuya MK Building

Asahi Building

6,065 million yen
6,760 million yen
S/SRC B1/21F
Osaka City, Osaka

1,763 million yen
2,500 million yen
SRC B1/9F
Shibuya Ward, Tokyo

1,725 million yen
RC B1/6F
Minato Ward, Tokyo

2,042 million yen
3,220 million yen
S 6F
Shibuya Ward, Tokyo

6,320 million yen
7,790 million yen
S・SRC B2/12F
Yokohama City, Kanagawa

766.11㎡

1,274.37㎡

589.94㎡(surface right)

1,286.45㎡

620.42㎡(of which 2.62 m² leasehold)1,096.86㎡

4,137.21㎡
June 15, 1993

15,407.83㎡
February 8, 2010

5,117.80㎡
May 28, 1987

4,132.80㎡
Jan 6, 1990

1,982.86㎡
July 31, 1993

12,353.83㎡
November 25, 1994

9FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee

Honmachibashi Tower

OFC-04
Nishi-Shinjuku Matsuya
Building

2,973 million yen
3,020 million yen
SRC B1/7F
Minato Ward, Tokyo

Lot area
Total floor areas
Construction completion

OFC-03

10FP

9FP

10FP

9FP

10FP

9FP

10FP

9FP

10FP

9FP

10FP

95,94796,477

215,558

239,587

108,781

109,835

75,26629,65079,69380,650226,051

228,609

88,06888,052

193,563

184,096

101,784

101,689

66,87027,39475,321

75,382210,058

211,188

7,879

8,424

21,99455,490

6,996

8,145

8,396

2,255

4,372

5,267

15,992

17,421

27,446

26,23958,871

96,862

34,38335,23017,242

8,896

13,522

17,67264,91062,908

5,971

5,901

15,18014,020

6,835

6,921

4,564

1,883

4,797

4,861

15,72015,979

Utilities expenses

400

400

400

400

400

400

412

222

350

350

400

400

Insurance premium

6,085

5,863

18,763

19,254

7,439

7,475

3,913

1,979

3,078

3,132

17,49016,672

Repair expenses

115

120

354

370

127

133

92

45

44

46

353

371

Trust fee

1,921

1,325

2,159

31,880

3,374

4,746

1,807

1,504

530

1,618

12,566

11,442

Taxes and dues

4,535

4,532

19,763

19,763

3,410

3,410

6,208

3,080

4,327

4,327

16,123

16,123

Other expenses

8,416

8,095

2,250

11,173

12,796

12,142

244

180

393

3,334

2,254

1,917

NOI

68,50070,237

156,686

142,725

74,39774,60458,02320,754

66,17062,978161,140

165,701

Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures

11,565

11,60945,35945,404

8,744

9,803

5,617

2,819

3,386

3,530

26,611

27,49356,934

58,628111,327

97,32065,65364,801

52,406

17,93462,78459,447

134,529

138,207

637

4,130

1,132

2,312

16,631

6,922

-

1,146

3,797

3,977

24,17624,970

NCF
Period-end book value

67,863

66,107

155,554

140,41257,766

67,68258,023

19,60762,37359,001

136,964

140,730

2,952,020

2,944,540

5,816,046

5,772,954

1,828,725

1,825,844

1,101,697-

2,092,597

2,093,043

6,327,747

6,325,224

41

Balance of Payments of Individual Properties (2)Asset Type

OFC-09OFC-10
OFC-11
Nihonbashi Hamacho Park Amusement Media Gakuin
Building
HonkanOFC-12
Higashi Kobe Center
Building

OFC-13
Amusement Media Gakuin
Shinkan

OFC-14

Property nameHakata-eki East Place

Acquisition price

2,286 million yen

1,450 million yen

2,580 million yen

7,440 million yen

1,020 million yen

11,200 million yen

Appraisal value

2,630 million yen

1,540 million yen

2,690 million yen

7,390 million yen

1,160 million yen

11,200 million yen

Structure/Floors

SRC 9F

SRC 11FSRC S 8F/B1F

SRC 14F

RC７F

SRC 10F/1B

Location

Fukuoka City, Fukuoka

Chuo Ward, Tokyo

Shibuya Ward, Tokyo K

Kobe City, Hyogo

Shibuya Ward, Tokyo

Shinjyuku Ward, Tokyo

Lot area

1,129.86㎡

433.21㎡

8,488.11㎡

203.43㎡

886.93㎡

Total floor areas

6,243.13㎡

319.04㎡Number derived by multiplying theratio of holdings）
2,383.76㎡Number derived by multiplying
the ratio of holdings）

1,892.18㎡

25,740.46㎡

913.71㎡

7,624.66㎡

February 24, 1986

July 13, 1992

November 2, 1994

January 6, 1992

January 25, 1999

Construction completion

Seishin Building

March 31, 1989
SSR prior FP

9FP

10FP

9FP

9FP

10FP

104,329

104,071

51,571

51,788318,964

320,536

289,697244,866

94,303

92,77551,571

51,788282,767

288,866

265,201

228,262

10,025

11,296--36,197

31,66924,496

16,604

28,69826,94012,112

12,107

114,870

110,22267,04961,280Management fee

8,041

8,174

880

880

26,45725,592

15,50919,370Utilities expenses

400

400

400

400

400

400

13,237353

Insurance premium

6,986

7,687

-

-

33,03529,968427

8,923

Repair expenses

165

173

122

129

649

689

4,434

206

Trust fee

4,881

1,993

30

-

4,782

6,844

875

7,260

Taxes and dues

7,079

7,079

4,299

4,299

29,16529,165

31,102

20,920

Other expenses

1,143

1,431

6,379

6,398

20,38017,562

1,461

4,246

NOI

75,63077,13039,45939,680204,094

210,314222,648

183,585

Depreciation

7,777

8,033

2,837

2,837

33,00633,524

18,17011,715

Operating income (loss)
from real estate leasing

67,85369,09736,622

36,843

171,087

176,790

204,477

171,870

Capital expenditures

5,788

12,418--15,79522,746

21,05026,511

Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue
Total operating expenses
from real estate leasing

NCF
Period-end book value

10FP

9FP

69,84164,71239,45939,6802,314,827

2,319,212

1,455,957

1,453,120（*）

2,594,390

10FP

（*）

2,592,439

188,299

187,567

7,631,050

7,620,273

9FP

（*）

1,030,689

10FP

（*）

1,040,196(7month）

10FP

201,598

157,073

11,200,000

11,214,796

42(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

Balance of Payments of Individual Properties (3)Asset Type

OFC-15

OFC-16

OFC-17

OFC-18OFC-19OFC-20Property nameNK Building

Tsukasamachi Building

Takadanobaba Access

Azabu Amerex Building

Hiei Kudan Building

Shin Yokohama Nara Bldg

Acquisition price5,350 million yen

4,590 million yen

3,990 million yen

2,780 million yen

2,400 million yen

2,300 million yen

Appraisal value

5,360 million yen

4,590 million yen

3,970 million yen

2,789 million yen

2,370 million yen

2,310 million yen

Structure/Floors

SRC 10F/1B

SRC 8F/1B

SRC 14F/1B

SRC 8F/1B

SRC S 11F/1B

S RC 1F/1B

Location

Chiyoda Ward, Tokyo

Chiyoda Ward, Tokyo

Shinjyuku Ward, Tokyo

Minato Ward, Tokyo

Chiyoda Ward, Tokyo

Yokohama City, Kanagawa

Lot area

590.72㎡

709.52㎡

930.70㎡

601.71㎡

700.59㎡
5,356.99㎡
March 17, 1992

Total floor areas
Construction completion

4,994.70㎡

4,629.27㎡

5,757.14㎡

2,909.80㎡

478.27㎡（Number derived bymultiplying the ratio of holdings）
3,205.72㎡（Number derived bymultiplying the ratio of holdings）

October 28, 1991

January 20, 1988

January 14, 1994

June 30, 1988

September 17, 1991

SSR prior FP(7month）

Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

SSR prior FP

10FP(7month）

SSR prior FP

10FP(7month）

SSR prior FP

10FP(7month）

SSR prior FP

10FP(7month）

SSR prior FP

10FP(7month）

10FP

170,580

138,581

136,876

118,175

129,818

112,805

81,60971,41079,911

68,63594,24981,804

153,233

124,989

122,874

110,309109,250

102,023

73,46468,444

77,595

68,63578,352

71,58017,346

13,591

14,001

7,866

20,568

10,782

8,145

2,966

2,315

-

15,897

10,223

39,111

33,71729,88925,30742,01730,78726,321

18,65423,98922,63832,71929,867

14,496
5,629
282
1,683
875
15,876
268
131,468
10,18011,735
353
4,233
149
3,588
10,648
3,008
104,864
8,297

8,132
6,937
267
2,419
875
11,071
186
106,986
10,371

9,722
403
4,888
144
2,325
7,437
385
92,867
7,399

16,022
8,458
324
2,102
875
13,693540
87,80114,14013,160
403
6,392
158
619
9,183
869
82,017
8,810

9,295
3,342
163
1,098
437
11,401582
55,288
2,756

7,250
377
2,268
75
787
7,669
224
52,755
3,307

12,549
27
136
167
875
10,123
110
55,921
3,472

3,429
503
56
133
1,488
6,814
10,21245,996
3,643

11,081
6,710
302
1,974
875
11,548227
61,530
11,587

8,834
353
4,831
136
5,901
7,765
2,043
51,936
7,902

121,288

96,566

96,61485,46873,661

73,20752,53249,44852,44942,352

49,942

44,033

13,694
117,774
5,350,000

25,43779,426
5,367,139

968
106,018
4,590,000

467
92,4004,583,068

13,81173,9903,990,000

5,230
76,787
3,986,419

948
54,3402,780,000

2,264
50,4912,778,957

971
54,9502,400,000

3,543
42,452
2,399,900

61,5302,300,000

18,76333,173
2,310,860

43

Balance of Payments of Individual Properties (4)Disposed
Asset Type

OFC-21

RTL-01

RTL-02

RTL-03

RTL-04

RSC-01

Property name

The Portal Akihabara

LaPark Kishiwada

Suroy Mall Chikushino

Seiyu Minakuchi

Suroy Mall Nagamine

Urban Park Azabujuban

Acquisition price

1,510 million yen

5,450 million yen

6,550 million yen

3,320 million yen

3,450 million yen

2,045 million yen

3,310 million yen

3,450 million yen(as of July 31,
2020)

Appraisal value
Structure/Floors
Location
Lot area

1,510 million yen

5,210 million yen

SRC S 8F

RC S 3F

Chiyoda Ward, Tokyo

Kishiwada city, Osaka

184.76㎡

6,540 million yen
S 2F

S 4F

S 1F 2F

Chikushino city, Fukuoka

Koka city, Shiga

Kumamoto city, Kumamoto
28,546.00㎡

417.67㎡

121,423.46㎡（Also has leased land
19,917.56㎡ (of which leased land isof 25,321.5㎡ for use as a parking
16,444.53㎡)
lot.)

39,799.74㎡

2,500 million yen
SRC with slate roofing
B1/12F
Minato Ward, Tokyo

Total floor areas

1,010.67㎡

65,663.02㎡

31,086.23㎡

31,829.71㎡

13,130.23㎡

2,564.94㎡

Construction completion

May 31, 2002

August 30, 1994

June 22, 2007

May 31, 1999

August 23, 2007

November 29, 1999

SSR prior FP(7month）

Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

SSR prior FP

10FP(7month）

SSR prior FP

10FP(7month）

SSR prior FP

10FP(7month）

SSR prior FP

10FP(7month）

10FP

9FP

10FP

50,38832,768564,723

493,039

326,362

282,075

201,417

79,29957,82752,85235,56831,160438,691

416,499

319,416

279,962

167,757

62,84854,77751,15814,8201,607

126,032

76,540

6,946

2,112

33,65916,450

3,050

1,694

9,273

6,821

349,537

287,961

117,694

65,89670,81826,387

10,94916,760

3,863
1,618
60
1,428
466
1,808
28
41,115
3,770

2,736
402
1,389
29
547
1,609
106
25,947
3,472

146,716
109,7242,140
19,6572,158
66,7372,402
215,186
55,437

120,640
1,861
99,507853
6,977
44,742
13,378205,078
23,98355,7706,358
1,112
12,300875
29,405
11,872
208,668
38,12522,949
353
4,597
442
832
19,627
17,092
216,178
23,534

18,22829,478
425
1,363
875
19,584862
130,599
20,9804,578
146
12,474
96
275
7,531
1,285
52,911
6,166

2,107
350
669
57
2,909
2,874
1,981
46,878
4,915

2,086
350
634
59
7,997
2,874
2,757
36,091
5,010

37,34422,474

159,749

181,094

170,543

192,644

109,618

46,74541,96231,081

41,1151,510,000

25,947
1,506,527

42,041
173,145
5,400,000

40,815
164,2635,416,831

799
207,869
6,550,000

6,612
209,566
6,533,078

4,594
126,0053,450,000

52,911-

2,379
44,4982,082,765

2,443
33,6482,080,199（*）

3,320,000（*）

3,311,053

44(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

Balance of Payments of Individual Properties (5)Asset Type
Property name

RSC-02
Urban Park Daikanyama

RSC-05
Urban Park Namba

RSC-06
Urban Park Gokokuji

RSC-07
Urban Park Kashiwa

RSC-08
Urban Park Ryokuchi-koen

RSC-09Urban Park Koenji

Acquisition priceAppraisal value
Structure/Floors
Location

6,315 million yen
8,450 million yen①RC B1/3F ②RC B1/9F
Shibuya Ward, Tokyo

1,490 million yen
1,630 million yen
RC 14F
Osaka City, Osaka

1,460 million yen
1,510 million yen
RC B1F/5F
Toshima Ward, Tokyo

1,186 million yen
1,190 million yen
SRC B1F/8F
Kashiwa City, Chiba

1,550 million yen
1,640 million yen
RC 8F
Suita City, Osaka

1,167 million yen
1,180 million yen
RC 4F
Suginami Ward, Osaka

2,469.06㎡

670.39㎡

942.66 m 2 (Of which, 50.85 m2 is
contributed to Toshima Ward asroad)

1,597.85㎡

2,804.56㎡

988.26㎡

Lot area
Total floor areas
Construction completion

Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

8,261.29㎡

2,776.87㎡

2,451.72㎡

4,243.71㎡

5,854.64㎡

1,524.34㎡

1: November 15, 1982 2: May 30,
2006

January 9, 2013

February 28, 1990

August 28, 1997

March 10,1989

October 13, 1987

9FP

9FP

9FP

10FP

9FP

10FP

10FP

10FP

9FP

10FP

9FP

10FP

193,318

193,136

49,75944,77951,61142,97437,07635,16456,47857,65936,321

34,526

186,271

180,773

49,25544,08547,45041,22635,901

34,12854,38855,51933,807

31,527

7,046

12,363

504

693

4,161

1,747

1,174

1,035

2,090

2,139

2,513

2,998

37,79939,457

9,334

9,113

19,56618,08910,842

13,49022,457

13,843

8,447

11,986

9,922
350
3,778
194
7,242
11,442
4,870
155,518
12,909

9,028
350
3,726
202
6,823
11,442
7,884
153,679
13,306

2,561
350
351
63
2,158
2,821
1,029
40,425
7,541

2,499
350
341
66
1,780
2,820
1,254
35,666
7,547

3,806
400
2,222
52
7,935
1,909
3,239
32,045
5,374

3,678
400
2,124
54
4,321
1,909
5,600
24,884
5,690

1,969
350
589
84
3,674
2,950
1,225
26,234
7,241

1,824
350
533
88
6,276
2,950
1,467
21,673
7,385

2,778
350
2,212
117
6,631
3,583
6,784
34,020
7,986

2,289
350
2,578
124
3,518
3,583
1,399
43,815
8,083

1,796
400
1,560
36
2,326
969
1,358
27,873
2,574

2,416
400
1,344
38
5,924
969
893
22,5392,769

142,609140,372

32,883

28,11826,671

19,19418,992

14,287

26,03435,731

25,29919,7707,733
147,785
6,378,928

8,237
145,441
6,373,859

40,425
1,505,775

1,014
34,651
1,499,242

11,172
20,872
1,512,125

24,884
1,506,434

2,191
24,042
1,241,569

7,306
14,366
1,241,490

3,153
30,866
1,607,931

2,031
41,784
1,601,879

7,707
20,166
1,194,447

1,097
21,441
1,192,77545

Balance of Payments of Individual Properties (6)Asset Type

RSC-10

RSC-11

RSC-12

RSC-13

RSC-14

RSC-15

Property nameUrban Park Ichigao

Urban Park Gyotoku

Shiroi Logiman

Urban Park Sekime

Urban Park Imazato

Urban Park Yoyogi

Acquisition price

1,810 million yen

1,430 million yen

2,470 million yen

2,150 million yen

993 million yen

1,740 million yen

Appraisal value

1,890 million yen

1,530 million yen

2,460 million yen

2,210 million yen

990 million yen

1,760 million yen

Structure/Floors

RC SF/1B

SRC 10F

RC 13F

SRC 15F

RC 10F

RC 8F

Location

Yokohama City, Kanagawa

Ichikawa city, Chiba S

Shiroi city, Chiba

Osaka City, Osaka

Osaka City, Osaka

Shibuya Ward, Tokyo

Lot area

1,758.84㎡

1,122.57㎡

11,485.06㎡ （Number derived bymultiplying the ratio of holdings）

2,346.39㎡

1,803.70㎡

464.09㎡

22,448.08㎡ （Number derived bymultiplying the ratio of holdings）

8,190.11㎡

4,862.83㎡

1,418.03㎡

Total floor areas

5,243.85㎡

3,397.95㎡

Construction completion

July 10, 1998

March 1, 1995

May 9, 1995

August 18, 1989

SSR prior FP

9FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

10FP

9FP

10FP

(7month）

SSR prior FP

10FP(7month）

December 20, 1991
SSR prior FP

10FP(7month）

September 4, 2017
SSR prior FP

10FP(7month）

10FP

42,76454,80334,60746,303

163,139

140,832

101,225

84,76347,19539,26845,05342,26741,602

52,931

32,39843,071

155,054

133,951

91,77282,38144,75939,00843,53140,816

1,162

1,872

2,208

3,231

8,084

6,880

9,453

2,381

2,436

259

1,521

1,451

5,071

8,584

6,132

6,831

62,80559,14333,20732,566

12,76010,501

9,700

6,658

2,403
308
815
81
812
648
37,693
4,489

2,966
400
1,419
111
2,894
792
46,218
5,431

1,670
308
823
53
2,226
1,049
28,475
3,236

2,096
400
1,549
73
1,381
1,331
39,471
4,196

29,795
955
8,280
1,458
20,944
1,371
100,333
23,675

5,913
756
2
580
11,397
13,98026,514
81,68919,066

14,027
3,115
470
6,780
437
7,934
441
68,017
15,475

10,077
377
1,973
200
12,481
5,452
2,003
52,196
11,112

5,518
557
225
828
437
4,840
353
34,435
7,939

4,071
377
277
102
1,909
3,294
468
28,766
5,183

5,270
288
72
588
583
2,680
217
35,352
5,421

2,189
402
183
36
582
1,791
1,473
35,608
4,393

33,20440,787

25,23835,27576,65762,62252,541

41,084

26,496

23,58329,931

31,215

1,611
36,082
1,930,897

46,2181,925,466

5,256
23,2181,517,687

39,471
1,513,491

1,976
98,3562,470,000

228
81,4602,451,162

8,156
59,8612,150,000

24,04228,154
2,162,929

4,706
29,728993,000

28,766
987,816

35,352
1,740,000

35,608
1,735,606

46

Balance of Payments of Individual Properties (7)Asset Type

RSC-16
Urban Park
Tokiwadai Koen

RSC-17
Urban Park
Mitsuike Koen

Acquisition priceAppraisal value

3,506 million yen
3,770 million yen

3,160 million yen
3,330 million yen

Structure/Floors

RC 5F

RC 6F

Property nameLocation
Lot area

Yokohama City, Kanagawa Yokohama City, Kanagawa
12,544.61㎡
10,216.95㎡

LGC-01

LGC-02

LGC-03

LGC-04watsuki Logistics

Yokohama Logistics

Funabashi Logistics

Baraki Logistics

6,942 million yen
7,310 million yen
Steel construction, zincplated steel roofing, 5floorsSaitama City, Saitama
15,623.14㎡

3,560 million yen
4,120 million yen

7,875 million yen
8,660 million yen

4,700 million yen
4,850 million yen

RC 8F

Building 1: Steel construction, flat roof,
zincplated steel roofing, 8 floors Building 2:
Reinforced concrete structure

RC・S 5F

Yokohama City, Kanagawa
10,565.95㎡
18,387.89㎡(including 256.15
m2 break areas etc.)

Total floor areas

15,708.08㎡

10,918.37㎡

29,729.72㎡

Construction completion

Feb 17, 1994

March 24, 1992

October 29, 2014

October 1, 1994

9FP

9FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

10FP

9FP

10FP

9FP

10FP

-

82,517-

16,384

197,147

198,172

257,660

259,851-

79,609-15,351

187,713

187,718

241,745

241,854

-

2,908

-

1,033

9,433

10,454

15,914

17,997-

12,829-2,897

30,75631,15951,89154,002

-

6,406
236
817
144
1,608
45
3,570
69,688
8,416

-

1,626
52
52
34
80
40
1,012
13,486
1,951

5,650
350
9,433
272
1,111
13,630307
166,390
46,6095,920
350
10,454284
382
13,629137
167,01246,731

11,618400
13,247392
3,026
23,015
191
205,769
26,992

12,508400
14,521409
2,929
23,014217
205,849
27,146

61,271-

11,535

119,780

120,280

178,777

178,703

69,6883,648,190-

13,4863,304,112

3,294
163,096
6,605,645

2,263
164,748
6,561,177

3,387
202,3817,788,516

4,067
201,782
7,765,437

-

9FP

10FP

（*）

3,479,579

10FP

a Funabashi City, Chiba
19,858.00㎡
38,871.45㎡(two buildings
combined)
1: September 25, 1992 2:
August 5, 1997（*）

3,734,157

Ichikawa City, Chiba
6,240.96㎡
12,471.50㎡August 14, 2015

9FP

10FP

（*）

（*1

4,643,9784,628,965

47(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

Balance of Payments of Individual Properties (8)Disposed
Asset Type

LGC-05

LGC-06
Funabashi Nishiura
Logistics I

LGC-07
Funabashi Nishiura
Logistics II

LGC-08

LGC-09

LGC-10Property name

Tokorozawa Logistics

Acquisition price1,300 million yen

3,000 million yen

821 million yen

2,755 million yen

1,710 million yen

702 million yen

Appraisal value

1,380 million yen

3,020 million yen

850 million yen

2,910 million yen

1,710 million yen

701 million yen

Structure/Floors

S 2F

R 2F

R 4F

S 2F

S 2F

Location

Tokorozawa City, Saitama

Funabashi city, Chiba

Funabashi city, Chiba

Funabashi city, Chiba

Funabashi city, Chiba

Lot area

8,645.63㎡

7,142.00㎡

3,964.00㎡

RC 3F
Kita-Katsushika-gun,
Saitama
11,580.65㎡

13,420.44㎡

8,268.35㎡

Matsubushi Logistics

Funabashi Hi-Tech ParkⅠ Funabashi Hi-Tech ParkⅡ

Total floor areas

5,994.75㎡

14,018.82㎡

6,316.32㎡

19,833.47㎡

8,029.47㎡

4,384.83㎡

Construction completion

April 30, 1999

October 11, 1985日

W arehouse: Mar. 20, 1991 Plant:

March 31, 1997

May 19, 2003

September 5, 2001

May 15, 1972 Office: May 13, 1986

SSR prior FP

Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

9FP

10FP

9FP

10FP

9FP

10FP

9FP

10FP

(7month）

10FP

SSR prior FP(7month）

10FP

（*）

（*）

（*）

（*）

（*）

（*）

（*）

（*）

（*）

（*）

（*）

（*）

854,936

853,763

702,000

699,405

1,354,721

1,361,933

2,967,341－

2,725,589

2,709,574

1,710,000

1,704,262

48(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

Balance of Payments of Individual Properties (9)Asset Type

HTL-01

HTL-02

HTL-03

HTL-04

HTL-05

HTL-06

Best Western Yokohama

Hotel WBF Fukuoka Tenjin
Minami

GLANSIT Akihabara

Property nameR&B Hotel Umeda East

Smile Hotel Namba

Best Western Tokyo Nishikasai

Acquisition price

2,069 million yen

1,750 million yen

3,827 million yen

3,248 million yen

1,970 million yen

2,500 million yen

Appraisal value

2,250 million yen

1,400 million yen

3,610 million yen

3,190 million yen

1,930 million yen

2,440 million yen

Structure/Floors
Location

RC 9F

S 9F

SRC B1F／9F

SRC B1F／9F

RC 10F

SRC 10F/B1F

Osaka City, Osaka

Osaka City, Osaka

Edogawa Ward, Tokyo

Yokohama City, Kanagawa

Fukuoka City, Fukuoka

Chiyoda Ward, Tokyo

Lot area

730.26㎡

285.28㎡

1,418.00㎡

782.66㎡

543.94㎡

167.74㎡

Total floor areas

3,945.65㎡

1,711.42㎡

5,293.88㎡

4,686.09㎡

2,281.49㎡

1,081.97㎡

October 20, 2000

February 6, 2008

March 19, 1991

September 21, 1987

February 20, 2017

September 20, 2017

9FP

9FP

9FP

9FP

9FP

10FP

9FP

10FP

（*）

（*）

（*）

（*）

Construction completion

Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

10FP

10FP

10FP

10FP

65,21265,362

19,41022,37484,60085,59580,40080,94565,21265,362

19,41022,37484,60084,60080,40080,400

-

-

-

-

-

995

-

545

9,349

9,228

5,677

4,130

12,853

11,941

7,241

6,693

742
350
1
111
2,490
5,452
199
55,863
9,844

742
350
1
117
2,313
5,452
249
56,134
9,949

660
550
53
1,539
2,276
598
13,733
12,210

660
550
55
514
2,276
73
18,243
12,233

1,200
400
125
3,084
8,019
24
71,746
11,945

1,200
400
130
1,281
8,019
909
73,653
12,506

1,200
400
105
805
4,706
24
73,15813,030

1,200
400
110
236
4,705
41
74,252
13,06946,01946,185

1,522

6,010

59,80061,14660,12861,183

3,389
52,474
2,114,870

3,481
52,653
2,108,402

4,745
8,987
1,675,380

18,243
1,663,146

16,17055,5753,859,803

19,95153,702
3,867,247

1,666
71,4923,260,542

74,252
3,247,472

1,956,921

1,948,273

2,503,949

2,499,306

49(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

Balance of Payments of Individual Properties (10)Asset Type
Property name

HTL-07

HTL-08

Best Western
KOKO Hotel Osaka Namba
Tokyo Nishikasai Grande

Acquisition price

3,180 million yen

2,000 million yen

Appraisal value

3,130 million yen

1,450 million yen

Structure/Floors
Location

S 8F

RC9F

Edogawa Ward, Tokyo

Osaka City, Osaka

Lot area

657.00㎡

335.31㎡

Total floor areas

2,755.19㎡

2,061.38㎡

February 7, 2017

April 7, 2017

Construction completion

9FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

10FP

9FP

10FP

70,00270,825-70,00270,002

-

-

823

-

6,715

6,738

5,137

990
400
63
5,239
22
63,286
10,857

990
400
67
5,239
41
64,087
10,857

1,214
350
43
48
3,153
327
△5,137
9,035

52,42953,230△14,173

63,286
3,164,952

64,087
3,154,095

114△5,252
1,980,186（*）

1,989,10850(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

Balance of Payments of Individual Properties (11)

OfficeRetailResidence

Logistics

Hotel

Total

Total operating revenue
from real estate leasing

2,217,108

1,014,452

968,232

1,022,855

425,9725,648,622

Lease businessrevenue

2,009,772

919,348925,540

981,246

423,608

5,259,516

Other lease businessrevenue

207,336

95,10442,691

41,6082,364

389,105

Total operating expenses
from real estate leasing

642,495

415,583

262,756

176,804

53,3221,550,962

Management fee

162,720

149,968

59,172

33,116

7,733

412,710

Utilities expenses

7,324

2,865

5,553

3,671

3,200

22,614

Insurance premium

128,602

116,579

17,55838,562

45

301,349

Repair expenses

3,192

1,766

1,916

1,618

615

9,110

Trust fee

86,971

11,346

68,977

10,307

4,345

181,948

Taxes and dues

169,874

83,885

51,15384,81135,677425,403

Other expenses

83,80949,17258,423

4,715

1,704

197,825

1,574,612

598,869

705,476

846,050

372,650

4,097,659

205,343

78,959109,543

153,564

80,942

628,353

1,369,269

519,909595,932

692,486

291,7073,469,305

170,716

63,75546,402

27,47923,546331,900

NCF

1,403,896

535,113659,074

818,571

349,1033,765,759

Period-end book value

68,134,518

15,260,962

33,224,657

30,018,678

20,468,131

167,106,948

NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures

51

Disclaimer
This document has been prepared to provide information and is not for soliciting and inviting investment in or recommendingtransaction of certain products. SAR does not guarantee the accuracy or completeness of the information provided in thisdocument although effort has been made to provide correct information based on information available to SAR. Moreover,please note that the contents of this document are subject to change or removal without prior notice. Duplication andreproduction, etc. of the contents contained in this document without prior consent is prohibited. This document includes
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expectations, identifies strategies, contains projections of our results operations or financial condition, or states other forwardlooking information based on certain assumptions, estimates and projections, Known and unknown risks, uncertainties andother factors could cause our actual results, performance or achievements to differ materially from those contained or impliedin any forward-looking statement. We cannot give any assurances that the expectations expressed in these forward-looking
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■ Contact regarding this material
Akiko Kanno, Director and CFO (General Manager of Finance Management Department)

Star Asia Investment Management Co., Ltd.
Atago Green Hills Mori Tower 18F, 2-5-1, Atago, Minato-ku, Tokyo 105-6218
Tel: +81-3-5425-1340
52