(REIT) Financial Report for Fiscal Period Ended January 31, 2022
March 16, 2022
Stock Exchange Listing: Tokyo Stock Exchange
URL: http://starasia-reit.com/en/

REIT Securities Issuer:
Securities Code:
Representative:

Star Asia Investment Corporation (SAR)
3468
Atsushi Kato, Executive Director

Asset Management Company:
Representative:
Contact:

Star Asia Investment Management Co., Ltd.
Atsushi Kato, President and CEO
Akiko Kanno, Director and CFO
TEL: 03-5425-1340

Scheduled date of commencement of cash distribution payment:
Scheduled date of submission of securities report:

April 18, 2022
April 27, 2022

Preparation of supplementary financial results briefing materials:
Holding of financial results briefing session:

Yes
Yes

(Amounts are rounded down to the nearest million yen)
1. Status of Management and Assets for Fiscal Period Ended January 31, 2022 (from August 1, 2021 to January 31, 2022)(1) Management Status(% figures are the rate of period-on-period increase (decrease))
Fiscal period
Operating revenue
Operating income
Ordinary income
Net income
million yen%
million yen%
million yen%
million yen%
Ended Jan. 2022
5,960
7.2
3,087
8.8
2,517
4.6
2,516
4.6
Ended Jul. 2021
5,560
(16.7)
2,838(15.9)
2,407(17.3)
2,407(79.6)Net income
per unit

Fiscal period

Ratio of net income
to equity
yen
1,414
1,437

Ended Jan. 2022
Ended Jul. 2021

%
2.7
2.7

Ratio of ordinary income
to total assets
%
1.4
1.3

Ratio of ordinary income
to operating revenue
%
42.2
43.3

(2) Status of Cash Distribution
Cash distribution
Total
Cash distribution
Total
per unit
cash distribution
in excess of
cash distribution Cash distribution
Fiscal period(not including cash
(not including cash
earnings
in excess of
payout ratio
distribution in excess of distribution in excess of
per unit
earnings
earnings)
earnings)

Ratio of cash
distribution to
net assetsyenmillion yen

yenmillion yen%%

Ended Jan. 2022

1,478

2,644

-

-

105.1

2.8

Ended Jul. 2021

1,462

2,447

-

-

101.7

2.7

(Note 1) Total cash distribution differs from net income due to the reversal of reserve for temporary difference adjustment and otherfactors.
(Note 2) For the fiscal period ended Jan. 2022, cash distribution payout ratio is calculated by the following formula due to changes in
the number of investment units during the period following issuance of new investment units during the period:
Total cash distribution (not including cash distribution in excess of earnings) ÷ Net income × 100(3) Financial Position
Fiscal period

Total assets
million yen
193,316
179,170

Net assets
million yen
95,75389,179Net cashprovided by (used in)operating activities
million yen
3,130
2,672

Net cashprovided by (used in)investing activities
million yen(13,178)(242)

Ended Jan. 2022
Ended Jul. 2021

Equity ratio
%
49.5
49.8

Net assets per unit
yen
53,51153,260(4) Status of Cash Flows
Fiscal period

Ended Jan. 2022
Ended Jul. 2021

-1-

Net cashCash and cash equivalents
provided by (used in)at end of period
financing activities
million yen
million yen
11,067
11,725(2,805)
10,706

2. Management Status Forecast for Fiscal Period Ending July 31, 2022 (from February 1, 2022 to July 31, 2022) and Fiscal PeriodEnding January 31, 2023 (from August 1, 2022 to January 31, 2023)(% figures are the rate of period-on-period increase (decrease))
Fiscal period

Operating revenue

million yen
Ending Jul. 2022
Ending Jan. 2023

5,923
5,995

Operating income% million yen
(0.6)
1.2

2,992
3,031

Ordinary income% million yen
(3.1)
1.3

Net income% million yen

2,500
2,552

(0.7)
2.1

2,499
2,552

Cash distribution
per unit
Cash distribution(not including
in excess of earnings
cash distribution
per unit
in excess of earnings)
%
yen
yen
(0.7)
2.1

1,476
1,476

-

(Reference) Forecast net income per unit (Expected net income ÷ expected total number of investment units issued andoutstanding at end of period)
Fiscal period ending July 31, 2022:
Expected total number of investment units issued and outstanding at end of period 1,789,389 units
Forecast net income per unit 1,397 yen
Fiscal period ending January 31, 2023:
Expected total number of investment units issued and outstanding at end of period 1,789,389 units
Forecast net income per unit 1,426 yen(Note 1) Cash distribution per unit calculated using the expected total number of investment units issued and outstanding at
end of period above (total number of investment units issued and outstanding as of the date of this report of
1,789,389 units).
(Note 2) Cash distribution per unit (not including cash distribution in excess of earnings) differs from the forecast net income
per unit as it is assumed that the amount of reversal of reserve for temporary difference adjustment, etc. willcontinuously be allocated to distributions.
* Others(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement① Changes in accounting policies accompanying amendments to accounting standards, etc. : Yes② Changes in accounting policies other than ①: No③ Changes in accounting estimates: No④ Retrospective restatement: No(2) Total Number of Investment Units Issued and Outstanding① Total number of investment units issued and outstanding (including own investment units) at end of period
Fiscal period ended Jan. 31, 2022
1,789,389 units
Fiscal period ended Jul. 31, 2021
1,674,389 units② Number of own investment units at end of period
Fiscal period ended Jan. 31, 2022
0 units
Fiscal period ended Jul. 31, 2021
0 units(Note) For the number of investment units serving as the basis for calculation of net income per unit, please see “Notes on
Per Unit Information” on page 23.
* Financial reports are exempt from audits by a certified public accounting or accounting firms.
* Special Note
The management status outlook and other forward-looking statements contained in this document are based on information thatare currently available and certain assumptions that are deemed reasonable by SAR. Accordingly, the actual management status,
etc. may differ materially due to various factors. In addition, the forecast figures are the current figures calculated under theassumptions described in “Assumptions Underlying Operating Results Forecasts for Fiscal Period Ending July 31, 2022 and Fiscal
Period Ending January 31, 2023” on pages 3-4. Accordingly, the actual operating revenue, operating income, ordinary income, net
income, cash distribution per unit (not including cash distribution in excess of earnings) and cash distribution in excess of earnings
per unit may vary due to acquisition/disposition of real estate, etc., trends of the real estate market, etc., fluctuations in interest
rates, or other changes in the circumstances surrounding SAR, etc. in the future. In addition, the forecast is not a guarantee of theamount of cash distribution.

-2-

Assumptions Underlying Operating Results Forecasts for
Fiscal Period Ending July 31, 2022, and Fiscal Period Ending January 31, 2023
Item
Calculation period

Assumptions➢ Fiscal period ending July 31, 2022: February 1, 2022 – July 31, 2022 (181 days)➢ Fiscal period ending January 31, 2023: August 1, 2022 – January 31, 2023 (184 days)

Assets undermanagement➢ It is assumed that, with regard to the assets held by SAR as of the date of this report (60 real estate trust
beneficiary interests, and 2 mezzanine loan debts (collectively, “Currently Held Assets,” with those in theform of real estate trust beneficiary interests being referred to as “Currently Held Assets (Real Estate),”and those in the form of mezzanine loan debt being referred to as “Currently Held Assets(Mezzanine)”)), there will be no change in assets under management (new property acquisitions, salesof the existing properties, etc.) through to the end of the fiscal period ending January 31, 2023.
➢ However, in reality assets under management may change.

Operating revenues➢ Rent revenues from Currently Held Assets (Real Estates) are calculated based on the details stated in thelease agreements effective as of the date of this report, taking into consideration factors such as market
movements. It is also assumed that there will be no arrears or non-payment of rent by tenants.
➢ Interest revenues or dividend revenues from Currently Held Assets (Mezzanine) are calculated based onoutlines which define the contents of Currently Held Assets (Mezzanine) and loan agreements or trust
agreements that are effective as of the date of this report. It is also assumed that no interest payments
or dividend payments will be unpaid.

Operating expenses➢ Among expenses related to rent business which are the main operating expenses, expenses other thandepreciation are calculated on the basis of historical performance data, by reflecting variable expense
factors.
➢ Fixed property taxes, city planning taxes, and other public charges are expected to be 452 million yen in
the fiscal period ending July 31, 2022, and to be 452 million yen in the fiscal period ending January 31,
2023.
➢ For expenditures for repair and maintenance of buildings, based on the repair and maintenance plan
prepared by Star Asia Investment Management Co., Ltd, the asset manager of SAR (the “AssetManager”), 207 million yen is expected for the fiscal period ending July 31, 2022, and 207 million yen is
expected for the fiscal period ending January 31, 2023. However, the actual expenditures for repair andmaintenance for the fiscal periods could differ significantly from the estimated amounts, as urgent
expenditures due to damage to buildings may arise due to unexpected factors, and because such
expenditure amounts generally tend to vary significantly from year to year, and do not arise regularly.
➢ Depreciation is calculated using the straight-line method including for ancillary costs and is expected to
be 699 million yen for the fiscal period ending July 31, 2022, and 715 million yen for the fiscal period
ending January 31, 2023.
➢ Operating expenses other than rent business related expenses are expected to be 543 million yen in thefiscal period ending July 31, 2022, and 552 million yen in the fiscal period ending January 31, 2023.

NOI(Net Operating
Income)➢ Total NOI of the entire portfolio is expected to be 4,211 million yen for the fiscal period ending July 31,
2022, and 4,275 million yen for the fiscal period ending January 31, 2023.
➢ NOI is calculated by using the following calculation method.
NOI = rent revenue – rent expenses (excluding depreciation)

Non-operating
expenses➢ As issuance cost of new investment units, non-operating expenses are expected to be 6 million yen for
the fiscal period ending July 31, 2022 and 6 million yen for the fiscal period ending January 31, 2023.
➢ The sum of interest expenses and other financing-related expenses is expected to be 480 million yen in
the fiscal period ending July 31, 2022, and 466 million yen in the period ending January 31, 2023.
➢ The sum of interest expenses on investment corporation bonds and other expenses on investment
corporation bond issuance is expected to be 4 million yen in the fiscal period ending July 31, 2022, and 4
million yen in the period ending January 31, 2023.
➢

Debt financing andinvestment
corporation bonds

Investment units➢➢

As of the date of this report, SAR has outstanding debt of 88,640 million yen and outstanding
investment corporation bonds of 1,000 million yen.
It is assumed that, among the above borrowings, those with repayment dates falling in the fiscal
period ending July 31, 2022, and the fiscal period ending January 31, 2023, (15,350 million yen) will befully refinanced.
It is assumed that there will be no change to the existing outstanding debt and outstanding
investment corporation bonds through to the end of the fiscal period ending January 31, 2023, otherthan those described above.

➢ It is assumed that the total number of investment units issued and outstanding will be 1,789,389 units,
the number as of the date of this report, and that there will be no change in the number due to issuanceof new investment units, etc. through to the end of the fiscal period ending January 31, 2023.

-3-

Item

Assumptions➢ SAR calculates its distribution per unit (excluding distributions in excess of earnings) pursuant to its cash
distributions policy as set forth in its Articles of Incorporation.
➢ As for the reserve for temporary difference adjustment, SAR plans to continuously reverse 1% or moreof the initial reserve in each fiscal period and use it mainly to mitigate any negative impact on
distributions caused by temporary decrease in income or incurred expenses and to avoid the occurrenceof corporate and other tax expenses as a result of any differences between tax and accounting.
Cash distributions ➢ As to cash distribution for the fiscal period ending July 31, 2022, it is assumed that a total of 2,641
per unit
million yen (1,476 yen per unit) will be distributed, which is the amount equivalent to the total of(not including
estimated net income for the fiscal period of 2,499 million yen, the expected reversal amount from the
cash distribution
temporary difference adjustment reserve of 88 million yen and a portion of profit carried forward fromin excess of earnings)
the previous period of 52 million yen. As to cash distribution for the fiscal period ending January 31,
2023, it is assumed that a total of 2,641 million yen (1,476 yen per unit) will be distributed, which is theamount equivalent to the total of estimated net income for the fiscal period of 2,552 million yen and the
expected reversal amount from the temporary difference adjustment reserve of 88 million yen.
➢ The distribution per unit may change due to various factors including changes to the assets undermanagement, changes to rent revenues given movements etc. of tenants, or the occurrence of
unexpected repairs.
Cash distributions
in excess of earnings ➢ SAR has no plans to make distributions in excess of earnings as of the date of this report.
per unit

Others➢ SAR assumes that no amendments affecting the above forecast numbers will be made to relevant laws
and regulations, tax policies, accounting standards, listing rules, rules of investment trusts associations,etc.
➢ SAR assumes that there will be no unforeseen material change in general economic conditions or realestate market conditions, etc.

-4-

3.

Financial Statements(1) Balance Sheet(Unit: thousand yen)
11th fiscal period(As of July 31, 2021)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
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
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Lease and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance expenses
Total deferred assets
Total assets-5-

12th fiscal period(As of January 31, 2022)

3,169,688
7,536,399
96,187177,085
83,497
7,506
11,070,364

3,774,975
7,950,192
88,581200,093
155,777
14,763
12,184,385

114
(42)
71
49,655,872(4,084,344)
45,571,527
20,635(4,393)
16,242
97,214(18,872)
78,341
56,654(20,334)
36,319117,051,893
550
162,754,946

114
(71)
42
53,053,772(4,755,763)
48,298,008
20,635(5,115)
15,52099,519(23,762)75,75667,545(24,969)
42,576
127,283,507
175,715,413

4,082,300
4,082,300

4,082,300
4,082,300

692,234
300,000
260,510
10,4591,263,203
168,100,450

922,220
351,116
10,3793,317
1,287,033
181,084,747

179,170,815

13,60334,21947,823
193,316,956

(Unit: thousand yen)
11th fiscal period(As of July 31, 2021)
Liabilities
Current liabilities
Operating accounts payable
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term borrowings
Leasehold and guarantee deposits
Leasehold and guarantee deposits in trust
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unitholders’ capital surplus
Voluntary reserve
Reserve for temporary difference adjustment
Total voluntary reserve
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-6-

12th fiscal period(As of January 31, 2022)

544,5422,150,000
23,450,000
492,764
41,562605
71,861
913,623
23,834
27,688,794

789,397
15,350,000
500,649
49,478605
46,037915,355
30,771
17,682,295

56,840,000
6,142
5,217,745
238,65462,302,542
89,991,336

1,000,000
73,290,000
5,074
5,476,752
109,745
79,881,571
97,563,867

52,745,966

59,115,701

25,132,218

25,132,218*2 8,891,236*2 8,802,324

8,891,236
2,651,806
36,675,261
89,421,227

8,802,324
2,809,755
36,744,298
95,859,999(241,749)(241,749)*1 89,179,478
179,170,815(106,910)(106,910)*1 95,753,089
193,316,956

(2) Statement of Income(Unit: thousand yen)
11th fiscal period
From: February 1, 2021
To: July 31, 2021
Operating revenue
Rental revenue
Other lease business revenue
Other revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody and administrative service fees
Directors’ compensations
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of unpaid distribution
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)-7-

12th fiscal period
From: August 1, 2021
To: January 31, 2022

*１ 5,184,498*１ 5,467,061*１ 351,786*１ 423,937

24,4955,560,780

69,4185,960,418*１ 2,189,167*１ 2,311,905

380,024
38,6992,400
111,699
2,721,990
2,838,789

392,495
42,7322,400
122,935
2,872,468
3,087,950

63
3,390
1
3,454

48
1,326
106
1,481

301,653
132,679
434,333
2,407,910
2,407,910
605
605
2,407,305
244,500
2,651,806

337,1212,473
224,543850
6,843
571,833
2,517,598
2,517,598
605
605
2,516,993
292,7622,809,755

(3) Statement of Unitholders’ Equity
11th fiscal period (from February 1, 2021 to July 31, 2021)(Unit: thousand yen)
Unitholders’ equity
Surplus
Voluntary reserve

Unitholders’capitalBalance at beginning of theperiodChanges of items during theperiodCapital surplus

52,745,966

Unappropriatedretainedearnings
Total voluntary(undisposed
reserveloss)

Reserve fortemporarydifference
adjustment

25,132,218--

Dividends from surplus
Provision of reserve fortemporary difference
adjustment

8,891,236

8,891,236

Net income
Net changes of items otherthan unitholders’ equity
Total changes of items during
the period
Balance at end of the period

37,074,231

89,820,197(2,806,275)(2,806,275)(2,806,275)(8,891,236)--

2,407,305

2,407,305

2,407,305

8,891,236

8,891,236(9,290,206)(398,970)(398,970)*１ 52,745,966

25,132,218

8,891,236

8,891,236

2,651,806

36,675,261

89,421,227(219,679)(219,679)

Total
net assets

89,600,518

Dividends from surplus(2,806,275)

Provision of reserve fortemporary difference
adjustment-

Net income

Balance at end of the period

11,942,013

-

Total
Deferredvaluation andgains or losses
translation
on hedges
adjustments

Net changes of items otherthan unitholders’ equity
Total changes of items during
the period

Total
surplus-

Valuation and translation
adjustments

Balance at beginning of theperiodChanges of items during theperiodTotalunitholders’equity2,407,305(22,069)(22,069)(22,069)(22,069)(22,069)(421,039)(241,749)(241,749)

89,179,478-8-12th fiscal period (from August 1, 2021 to January 31, 2022)(Unit: thousand yen)
Unitholders’ equity
Surplus
Unitholders’capitalBalance at beginning of theperiodChanges of items during theperiodIssuance of new
investment units

52,745,966

Voluntary reserve
Capital surplus

25,132,218

Reserve fortemporarydifference
adjustment
8,891,236

Unappropriatedretainedearnings
Total voluntary(undisposed
reserveloss)
8,891,236(88,912)(88,912)Net income(2,447,956)(2,447,956)

88,912--2,516,993

2,516,993

2,516,993(88,912)(88,912)

157,949

69,037

6,438,772*１ 59,115,701

25,132,218

8,802,324

8,802,324

2,809,755

36,744,298

95,859,999(241,749)(241,749)

Total
net assets

89,179,478

6,369,735

Dividends from surplus(2,447,956)

Reversal of reserve fortemporary difference
adjustment-

Net income

Balance at end of the period(2,447,956)

-

Total
Deferredvaluation andgains or losses
translation
on hedges
adjustments

Net changes of items otherthan unitholders’ equity
Total changes of items during
the period

89,421,227

6,369,735

Valuation and translation
adjustments

Balance at beginning of theperiodChanges of items during theperiodIssuance of new
investment units

36,675,261

6,369,735

Reversal of reserve fortemporary difference
adjustment

Balance at end of the period

Total
surplus6,369,735

Dividends from surplus

Net changes of items otherthan unitholders’ equity
Total changes of items during
the period

2,651,806

Total
unitholders’equity2,516,993
134,838

134,838

134,838

134,838

134,838

6,573,610(106,910)(106,910)

95,753,089-9-

(4) Statement of Cash Distributions(Unit: yen)I.

Unappropriated retained earnings

11th fiscal period
From: February 1, 2021
To: July 31, 2021

12th fiscal period
From: August 1, 2021
To: January 31, 2022

2,651,806,438

2,809,755,972

II. Reversal of voluntary reserve
Reversal of reserve for temporary difference adjustment *1
III. Cash distribution[Cash distribution per unit]
Cash distribution of earnings[Cash distribution of earnings per unit]
IV. Retained earnings carried forward

88,912,365

88,912,365

2,447,956,718

2,644,716,942(1,462)
2,447,956,718(1,478)2,644,716,942(1,462)(1,478)292,762,085

253,951,395

Method of calculation of amount of cash distributions
11th fiscal period (from February 1, 2021 to July 31, 2021):
Pursuant to the cash distribution policy provided in Article 35, Paragraph 1 of SAR’s Articles of Incorporation, SAR shall distribute inexcess of the amount equivalent to 90% of the amount of distributable earnings of SAR as defined in Article 67-15, Paragraph 1 of
the Act on Special Measures Concerning Taxation. In accordance with such policy, concerning cash distribution of earnings (notincluding cash distribution in excess of earnings), the decision was made to distribute 2,447,956,718 yen, which is equivalent to thesum of the amount remaining after reserving 48,261,396 yen from net income and the amount of reversal of reserve for temporary
difference adjustment of 88,912,365 yen.
12th fiscal period (from August 1, 2021 to January 31, 2022):
Pursuant to the cash distribution policy provided in Article 35, Paragraph 1 of SAR’s Articles of Incorporation, SAR shall distribute inexcess of the amount equivalent to 90% of the amount of distributable earnings of SAR as defined in Article 67-15, Paragraph 1 of
the Act on Special Measures Concerning Taxation. In accordance with such policy, concerning cash distribution of earnings (notincluding cash distribution in excess of earnings), the decision was made to distribute 2,644,716,942 yen, which is equivalent to theamount obtained by adding part of retained earnings brought forward of 38,810,690 yen and the reversal of reserve for temporary
difference adjustment of 88,912,365 yen to net income.

- 10 -

(5) Statement of Cash Flows(Unit: thousand yen)
11th fiscal period
From: February 1, 2021
To: July 31, 2021
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Repayments of leasehold and guarantee deposits
Proceeds from leasehold and guarantee deposits
Repayments of leasehold and guarantee deposits in trust
Proceeds from leasehold and guarantee deposits in trust
Proceeds from collection of lease and guarantee deposits
Purchase of investment securities
Proceeds from redemption of investment securities
Proceeds from collection of long-term loans receivable
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of investment corporation bonds
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 11 -

12th fiscal period
From: August 1, 2021
To: January 31, 2022

2,407,910
633,013(63)
301,653(13,838)(83,497)(180,619)
11,412(15,453)(123,131)(35,359)
78,509(3,762)
2,976,775
63(303,625)(443)
2,672,769

2,517,598
682,245
850
6,843
(48)
339,595
7,605(72,280)(25,824)(23,008)(90,606)
143,883
7,276
1,732(28,806)
3,467,056
48(331,705)(5,381)3,130,019(330,859)(72)
72(124,421)
145,144
10,06057,887(242,189)(13,552,890)(1,068)(181,994)
441,00180(400,000)
216,472
300,000(13,178,398)

1,660,000(1,660,000)
8,960,000(8,960,000)(2,805,455)(2,805,455)(374,875)
11,080,963*１ 10,706,087(2,150,000)
22,050,000(13,700,000)
985,545
6,328,671(2,446,756)
11,067,460
1,019,080
10,706,087*１ 11,725,168

(6) Notes on the Going Concern Assumption
Not applicable.
(7) Notes on Matters Concerning Significant Accounting Policies
1. Evaluation standards
Other securities:
and methods ofThose with market pricevaluation of securities
Fair value method or market value method (Variances are directly included in net assets.)Those with no market price
Cost method through moving-average method
As for silent partnership equity interests, the method of incorporating the amountequivalent to equity interests corresponding to net amount of gain or loss from silent
partnership is adopted.
2. Method of
Property, plant and equipment (including trust assets)
depreciation of
The straight-line method is adopted. The useful life of primary property, plant and equipment is as follows:
non-current assets
Buildings
2-69 years
Structures
7-30 years
Machinery and equipment 7-17 years
Tools, furniture and fixtures 2-15 years
3. Accounting for(1) Investment unit issuance expenses
deferred assets
Investment unit issuance expenses are amortized by the straight-line method over 3 years.
(2) Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized by the straight-line method over theperiod through redemption.
4. Standards for(1) Accounting for fixed property tax, etc.
recording
Accounting for fixed property tax, city planning tax, depreciable asset tax, etc. (“fixed property
revenue and expensetax, etc.”) on real estate or beneficiary interest in trust for real estate held is that of the tax
amount assessed and determined, and the amount corresponding to the concerned calculation
period is expensed as expenses related to rent business.
The amount equivalent to fixed property tax, etc. in the initial fiscal year borne by SAR uponacquisition of real estate or beneficiary interest in trust for real estate is not recorded as
expenses but included in the cost of acquisition of the concerned real estate, etc. In the fiscal
period under review, the amount equivalent to fixed property tax, etc. included in the cost of
acquisition of real estate, etc. was 16,601 thousand yen.
(2) Standards for recording revenue
The details of main performance obligations concerning revenue generated from contracts
between SAR and its customers and the ordinary time to fulfil said performance obligations(ordinary time to recognize revenue) are as follows.
① Sale of real estate
For the proceeds from sale of real estate, SAR records revenue when the purchaser who is acustomer obtains control of the relevant real estate as a result of the seller fulfilling its delivery
obligations stipulated in the transaction agreement of the real estate.
② Utilities income
SAR records utilities income in accordance with the supply of electricity and water, etc. to thelessee who is a customer based on the lease agreement of real estate and details ofagreements incidental to it.
Of the utilities income, in the case that SAR deems itself to be an agent, the net amountobtained by deducting the amount it pays to other parties from the amount it receives as
charges for electricity and gas, etc. supplied by the said other parties is recognized as revenue.
5. Method of(1) Hedge accounting approachhedge accounting
Deferral hedge accounting is adopted.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transaction
Hedged items: Interest on loans(3) Hedging policy
SAR conducts derivative transactions for the purpose of hedging the risks provided in its
Articles of Incorporation pursuant to basic rules on risk management.
(4) Method of assessing the effectiveness of hedging
The effectiveness of hedging is assessed by comparing the cumulative change in cash flows of
the hedging instruments with the cumulative change in cash flows of the hedged items andverifying the ratio of the amount of change in the two.
- 12 -

6.

Scope of funds
in the statement ofcash flows (cash andcash equivalents)
Other significant
matters serving as thebasis for preparationof financial statements

7.

The funds (cash and cash equivalents) in the statement of cash flows comprise cash on hand andcash in trust, demand deposits and deposits in trust, and short-term investments with a maturity of
three months or less from the date of acquisition that are readily convertible to cash and that are
subject to an insignificant risk of changes in value.
(1) Accounting for beneficiary interest in trust for real estate, etc.
Concerning beneficiary interest in trust for real estate, etc. held, all accounts of assets andliabilities within trust assets as well as all accounts of revenue and expenses from the trust
assets are recognized in the relevant account item of the balance sheet and the statement ofincome.
The following material items of the trust assets recognized in the relevant account item areseparately listed on the balance sheet.
① Cash and deposits in trust② Buildings in trust; Structures in trust; Machinery and equipment in trust; Tools, furnitureand fixtures in trust; Land in trust; Construction in progress in trust③ Leasehold rights in trust④ Leasehold and guarantee deposits in trust(2) Accounting for consumption tax, etc.
Taxes are excluded from the transaction amounts in accounting for consumption tax and local
consumption tax.
Non-deductible consumption tax on acquisition of assets is included in the acquisition cost ofeach asset.

(8) Notes on Changes in Accounting Policies
1. Application of Accounting Standard for Revenue Recognition, Etc.
SAR has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29 (revised 2020), issued on March
31, 2020; the “Revenue Recognition Accounting Standard”), etc. from the beginning of the current calculation period, anddecided to recognize revenue at the amount expected to be received in exchange for the promised goods or services whencontrol of the goods or services is transferred to the customer. The impact of this change on the financial statements for thecurrent calculation period is minimal.
Furthermore, in accordance with the transitional treatment stipulated in Paragraph 89-3 of the Revenue Recognition
Accounting Standard, the note related to revenue recognition for the previous calculation period is not shown.
2.

Application of Accounting Standard for Fair Value Measurement, Etc.
SAR has applied the “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30, issued on July 4, 2019; the“Fair Value Measurement Accounting Standard”), etc. from the beginning of the current calculation period, and decided toadopt the new accounting policies set forth by the Fair Value Measurement Accounting Standard, etc. going forward inaccordance with the transitional treatment as stipulated in Paragraph 19 of the Fair Value Measurement AccountingStandard and Paragraph 44-2 of the “Accounting Standard for Financial Instruments” (ASBJ Statement No. 10 (revised 2019),
issued on July 4, 2019). The impact of this change on the financial statements for the current calculation period is minimal.

(9) Notes on the Financial Statements[Notes on the Balance Sheet]*1 Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Unit: thousand yen)
11th fiscal period(As of July 31, 2021)
50,000- 13 -

12th fiscal period(As of January 31, 2022)
50,000*2 Matters concerning provision and reversal of the reserve for temporary difference adjustment
11th fiscal period (As of July 31, 2021)(Unit: thousand yen)
InitialamountGain on negative
goodwill (Note)

Balance at
beginning of
the period

8,891,236-

Reserveduring theperiodReversalduring theperiodBalance at
end of theperiodReasons for provision andreversal

8,891,236-

8,891,236

Provision of gain on negative
goodwill from the merger(Note) Gain on negative goodwill indicates the amount of provision of gain on negative goodwill recorded in the past fiscal period, and will bereversed in equal amount over 50 years or less every fiscal period starting from the 12th fiscal period, which is the year following the fiscal
period in which the provision was made.

12th fiscal period (As of January 31, 2022)(Unit: thousand yen)
InitialamountGain on negative
goodwill (Note)

Balance at
beginning of
the period

Reserveduring theperiodReversalduring theperiodBalance at
end of theperiodReasons for provision andreversal

8,891,236-

88,9128,802,324

Appropriate for distribution

8,891,236(Note) Gain on negative goodwill indicates the amount of provision of gain on negative goodwill recorded in the past fiscal period, and will bereversed in equal amount over 50 years or less every fiscal period starting from the 12th fiscal period, which is the year following the fiscal
period in which the provision was made.

[Notes on the Statement of Income]*1 Breakdown of operating income (loss) from real estate leasing(Unit: thousand yen)
11th fiscal period
From: February 1, 2021
To: July 31, 2021

12th fiscal period
From: August 1, 2021
To: January 31, 2022

A. Operating revenue from real estate leasing
Rental revenue
Rent revenue

4,413,190

4,696,720

Common area maintenance revenue
Parking revenue

540,735
195,685

534,187
199,390

Facility use revenue
Other rental revenue

30,677
4,209

30,985
5,778

5,184,498

5,467,061

Other lease business revenue
Utilities reimbursement258,593

Other revenue

93,192

Total operating revenue from real estate leasing

296,154351,786

127,783

5,536,284

423,937
5,890,999

B. Operating expenses from real estate leasing
Expenses related to rent business
Management fee

419,406

438,037

Utilities expenses
Taxes and dues

260,562
421,132

310,409421,139

Repair expenses
Trust fee

220,204
22,864

181,998
25,603

Insurance premium
Depreciation

12,192
633,013

13,010682,245

Other expenses

199,789

239,461

Total operating expenses from real estate leasing

2,189,167

2,311,905

C. Operating income (loss) from real estate leasing [A－B]

3,347,117

3,579,094- 14 -

[Notes on the Statement of Unitholders’ Equity]*1 Total number of investment units authorized and total number of investment units issued and outstanding
11th fiscal period
From: February 1, 2021
To: July 31, 2021

12th fiscal period
From: August 1, 2021
To: January 31, 2022

Total number of investment units authorized

10,000,000 units

10,000,000 units

Total number of investment units issued and outstanding

1,674,389 units

1,789,389 units[Notes on the Statement of Cash Distributions]11th fiscal period
From: February 1, 2021
To: July 31, 2021
*1 Reserve for temporary difference adjustment
SAR provided 8,891,236 thousand yen as reserve fortemporary difference adjustment in the 10th fiscal
period. From the 11th fiscal period, SAR plans to reverse
the same amount or more in each fiscal period over a
period of up to 50 years. In the fiscal period underreview, SAR decided to reverse 88,912 thousand yen.

12th fiscal period
From: August 1, 2021
To: January 31, 2022
*1 Reserve for temporary difference adjustment
SAR provided 8,891,236 thousand yen as reserve fortemporary difference adjustment in the 10th fiscal period.
From the 11th fiscal period, SAR plans to reverse the sameamount or more in each fiscal period over a period of up to
50 years. In the fiscal period under review, SAR decided toreverse 88,912 thousand yen.

[Notes on the Statement of Cash Flows]*1 Reconciliation of cash and cash equivalents at end of period to the amount of balance sheet items(Unit: thousand yen)
11th fiscal period
From: February 1, 2021
To: July 31, 2021

12th fiscal period
From: August 1, 2021
To: January 31, 2022

Cash and deposits

3,169,688

3,774,975

Cash and deposits in trust

7,536,399

7,950,192

Cash and cash equivalents

10,706,087

11,725,168[Notes on Lease Transactions]Operating leases (as lessor)
Future minimum lease payments(Unit: thousand yen)
11th fiscal period
As of Jul. 31, 2021

12th fiscal period
As of Jan. 31, 2022

Not later than 1 year

5,328,242

5,584,037

Later than 1 year

8,126,573

7,200,564

13,454,815

12,784,602

Total- 15 -

[Notes on Financial Instruments]
1.

Matters concerning status of financial instruments(1) Policy for handling financial instruments
SAR shall procure funds to allocate to acquisition of real estate related assets, repayment of interest‐bearing liabilities,
etc. through mainly issuance of investment units, borrowing from financial institutions, issuance of investment
corporation bonds, etc. Upon procuring funds through interest‐bearing liabilities, due consideration shall be given tofund procurement agility and financial stability.
(2) Description of financial instruments and associated risks, and risk management system
The funds procured through loans, which shall be for the purpose of mainly acquisition of assets, are exposed toliquidity risk until the repayment date, but the concerned risks are managed by taking such measures as lengthening
the procurement periods and staggering the maturities. In addition, loans with floating interest rates are exposed tointerest rate fluctuation risk, but derivative transactions (interest rate swap transactions) are utilized as hedging
instruments to, in effect, convert interest rates to fixed rates in order to mitigate that risk. For the hedge accounting
approach, hedging instruments, hedged items, hedging policy and method of assessing the effectiveness of hedging,please refer to “5. Method of hedge accounting” described under “Notes on Matters Concerning Significant
Accounting Policies” earlier in this document.
(3) Supplementary explanation to matters concerning fair value, etc. of financial instruments
Not applicable.

2.

Matters concerning fair value, etc. of financial instruments
The carrying amount and fair value and the amount of difference between them are as follows. Because “cash anddeposits,” “cash and deposits in trust” and “short-term borrowings” are cash and settled in a short period of time andthe fair values approximate the book values accordingly, notes on such are omitted.
11th fiscal period (As of July 31, 2021)(Unit: thousand yen)
Carrying amount

Fair value

Amount of difference(1) Current portion of long-term borrowings

23,450,000

23,450,000-(3) Long-term borrowings

56,840,000

56,861,428

21,428

Liabilities total

80,290,000

80,311,428

21,428(241,749)(241,749)-(4) Derivative transactions (*)
12th fiscal period (As of January 31, 2022)(Unit: thousand yen)
Carrying amount

Fair value

Amount of difference(1) Current portion of long-term borrowings

15,350,000

15,350,378378(2) Investment corporation bonds

1,000,000

996,200(3,800)(3) Long-term borrowings

73,290,000

73,302,563

12,563Liabilities total

89,640,000

89,649,141

9,141(106,910)(106,910)-(4) Derivative transactions (*)(*)

Assets and liabilities arising from derivative transactions are offset and presented in the net amount, with the balance shown in parentheses ( )when in a net liability position.

(Note 1) Method of calculation of the fair value of financial instruments(1) Current portion of long-term borrowings (3) Long-term borrowings
Of these, the fair values of those with fixed interest rates are calculated by the present value obtained by discounting the total principal andinterest by the rate expected when similar funds are additionally borrowed in correspondence with the remaining term. Since those withfloating interest rates are under terms and conditions that interest rates be renewed every set period of time, the fair values areapproximately the same as the book value, and thus such are used.
(2) Investment corporation bonds
The refence value announced by Japan Securities Dealers Association is stated.
(4) Derivative transactions
Please refer to “Notes on Derivative Transactions” later in this document.

- 16 -

(Note 2) Amount of redemption/repayment of investment corporation bonds and loans to be due after the date of settlement of accounts
11th fiscal period (as of July 31, 2021)(Unit: thousand yen)
Later than 1 year Later than 2 years Later than 3 years Later than 4 years
and not later than and not later than and not later than and not later than Later than 5 years
2 years
3 years
4 years
5 years

Not later than
1 yearLong-term borrowings
Total

23,450,000

15,390,000

13,340,000

7,300,000

17,810,000

3,000,000

23,450,000

15,390,000

13,340,000

7,300,000

17,810,000

3,000,000

12th fiscal period (as of January 31, 2022)(Unit: thousand yen)
Later than 1 year Later than 2 years Later than 3 years Later than 4 years
and not later than and not later than and not later than and not later than Later than 5 years
2 years
3 years
4 years
5 years

Not later than
1 yearInvestment corporationbonds
Long-term borrowings
Total

-

-

-

-

-

1,000,000

15,350,000

14,630,000

12,285,000

19,150,000

17,175,000

10,050,000

15,350,000

14,630,000

12,285,000

19,150,000

17,175,000

11,050,000- 17 -

[Notes on Securities]
Other securities
11th fiscal period (as of July 31, 2021)
Category

Carrying amount(1) Stocks(Unit: thousand yen)
Difference

Acquisition cost---

① Government bonds,
municipal bonds, etc.

-

-

-

② Corporate bonds

-

-

-

③ Others

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

400,000

400,000-(2) Bonds
Carrying amountgreater thanacquisition cost(3) Others
Subtotal(1) Stocks(2) Bonds
Carrying amount lessthan or equal toacquisition cost

① Government bonds,
municipal bonds, etc.
② Corporate bonds③ Others(3) Others
Subtotal
Total

-

-

-

272,850

272,850-

672,850

672,850-

672,850

672,850-(*) Silent partnership equity interests (carrying amount: 19,384 thousand yen) are not included in above because they
have no market value and their fair values are extremely difficult to recognize.
12th fiscal period (as of January 31, 2022)
Category

Carrying amount(1) Stocks(Unit: thousand yen)
Difference

Acquisition cost---

① Government bonds,
municipal bonds, etc.

-

-

-

② Corporate bonds

-

-

-

③ Others

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

800,000

800,000

-

-

-

-

122,220

122,220-922,220922,220-922,220922,220-(2) Bonds
Carrying amountgreater thanacquisition cost(3) Others
Subtotal(1) Stocks(2) Bonds
Carrying amount lessthan or equal toacquisition cost

① Government bonds,
municipal bonds, etc.
② Corporate bonds③ Others(3) Others
Subtotal
Total- 18 -

[Notes on Derivative Transactions]1.

Derivative transactions to which hedge accounting is not applied
11th fiscal period (as of July 31, 2021)
Not applicable.
12th fiscal period (as of January 31, 2022)
Not applicable.

2.

Derivative transactions to which hedge accounting is applied
11th fiscal period (as of July 31, 2021)
The following is the contract amount or the amount equivalent to the principal provided in the contract as of the dateof settlement of accounts for each hedge accounting approach.
(Unit: thousand yen)Hedge
accounting
approach

Type, etc. of derivative transactionMainhedged item

Principle
accounting

Interest rate swap transaction(floating receivable; fixed payable)

Long-term
borrowings

Contract amount, etc. (Note 1)
Of which,later than 1 year
54,290,000

46,140,000

Fair value(Note 2)
(241,749)(Note 1) Contract amount, etc. is based on notional principal.
(Note 2) Fair value is calculated based on the price quoted by lending financial institutions, etc.

12th fiscal period (as of January 31, 2022)
The following is the contract amount or the amount equivalent to the principal provided in the contract as of the dateof settlement of accounts for each hedge accounting approach.
(Unit: thousand yen)Hedge
accounting
approach

Type, etc. of derivative transactionMainhedged item

Principle
accounting

Interest rate swap transaction(floating receivable; fixed payable)

Long-term
borrowings

Contract amount, etc. (Note 1)
Of which,later than 1 year
72,555,000

64,405,000

Fair value(Note 2)
(106,910)(Note 1) Contract amount, etc. is based on notional principal.
(Note 2) Fair value is calculated based on the price quoted by lending financial institutions, etc.

[Notes on Retirement Benefits]
11th fiscal period (as of July 31, 2021)
Not applicable.
12th fiscal period (as of January 31, 2022)
Not applicable.
[Notes on Tax-Effect Accounting]
1. Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities(Unit: thousand yen)
11th fiscal period
As of July 31, 2021

12th fiscal period
As of January 31, 2022

Deferred tax assets
Valuation adjustment upon merger

1,203,727

1,175,788

Acquisition cost of securities
Deferred gains or losses on hedges

1,359
76,054

2,998
33,634

Subtotal

1,281,140

1,212,421

Valuation allowance(1,281,140)(1,212,421)

-

-

-

-

Total
Deferred tax assets, net- 19 -

2.

Breakdown of major components that caused any significant differences between the statutory tax rate and the effective
income tax rate after application of tax-effect accounting(Unit: %)11th fiscal period
As of July 31, 2021

12th fiscal period
As of January 31, 2022

Statutory tax rate
[Adjustments]

31.46

31.46

Deductible distributions payable
Reversal of excess depreciation(30.49)(0.83)(30.61)(0.82)

Others(0.12)(0.00)

0.03

0.02

Effective income tax rate
after application of tax-effect accounting[Notes on Share of Profit or Loss of Entities Accounted for Using Equity Method, etc.]
11th fiscal period (as of July 31, 2021)
Not applicable.
12th fiscal period (as of January 31, 2022)
Not applicable.
[Notes on Related-Party Transactions]
1. Parent company, major corporate unitholders, etc.
11th fiscal period (from February 1, 2021 to July 31, 2021)
Not applicable.
12th fiscal period (from August 1, 2021 to January 31, 2022)
Not applicable.
2.

Affiliated companies, etc.
11th fiscal period (from February 1, 2021 to July 31, 2021)
Not applicable.
12th fiscal period (from August 1, 2021 to January 31, 2022)
Not applicable.

3.

Fellow subsidiaries, etc.
11th fiscal period (from February 1, 2021 to July 31, 2021)
Not applicable.
12th fiscal period (from August 1, 2021 to January 31, 2022)
Not applicable.

4.

Directors, major individual unitholders, etc.
11th fiscal period (from February 1, 2021 to July 31, 2021)

Type

Director, or
close
relative of
director

Name ofcompany,
etc. orpersonAtsushi
Kato

Address－

Capital stock Description ofor investments business orin capital
occupation－

Executive
Director of
SAR, andPresident andCEO of theAsset Manager- 20 -

Percentage ofvoting rights,
etc. held by(in) SAR

0.02%

Description oftransaction

Transaction
amount(thousandyen)

Account
item

Balance at
end ofperiod(thousandyen)

Payment of asset
management fee
to the AssetManager(Note 1)

380,024(Note 2)

Accounts
payable –others418,026(Note 2)

12th fiscal period (from August 1, 2021 to January 31, 2022)

Type

Director, or
close
relative of
director(Note 1)
(Note 2)
(Note 3)Name ofcompany,
etc. orpersonAddress

Atsushi
Kato

Capital stock Description ofor investments business orin capital
occupation－－

Percentage ofvoting rights,
etc. held by(in) SAR

Description oftransaction

Transaction
amount(thousandyen)

Account
item

Balance at
end ofperiod(thousand
yen)

0.02%

Payment of asset
management fee
to the AssetManager(Note 1)

472,980(Note 2)
(Note 3)

Accounts
payable –others429,545(Note 2)

Executive
Director of
SAR, andPresident andCEO of theAsset Manager

The transaction was conducted by Atsushi Kato as President and CEO of a third party (the Asset Manager), and the transaction amountis based on the terms and conditions provided in the Articles of Incorporation of SAR.
Of the amounts above, the transaction amount does not include consumption tax, while the balance at the end of the period includes
consumption tax.
The asset management fee for the 12th fiscal period includes the acquisition incentive portion included in the book value of individual
real estate, etc. in the amount of 80,485 thousand yen.

[Notes on Investments in Rental Properties]
SAR owns rental real estate, etc. for the purpose of earning revenue from leasing. The carrying amount, amount of increase(decrease) during the period and fair value of these investments in rental properties are as follows:(Unit: thousand yen)
11th fiscal period
From: February 1, 2021
To: July 31, 2021

12th fiscal period
From: August 1, 2021
To: January 31, 2022

167,106,948

166,836,697(270,251)

12,961,016

166,836,697

179,797,713

177,211,000

193,604,000

Carrying amount
Balance at beginning of period
Amount of increase (decrease) during period
Balance at end of period
Fair value at end of period(Note 1) Carrying amount is the amount of the cost of acquisition, less accumulated depreciation.
(Note 2) Of the amount of increase (decrease) in investments in rental properties during the 11th fiscal period, the amount of increase is mainly
attributable to capital expenditures (363,439 thousand yen), while the amount of decrease is mainly attributable to depreciation (633,013
thousand yen). Of the amount of increase (decrease) during the 12th fiscal period, the amount of increase is mainly attributable toacquisition of real estate beneficiary interest in trust of seven properties (13,230,298 thousand yen) and capital expenditures (424,722
thousand yen), while the amount of decrease is mainly attributable to depreciation (682,245 thousand yen).
(Note 3) Fair value at the end of the period is the appraisal value by an outside real estate appraiser.

Income (loss) concerning investments in rental properties is as stated in “Notes on the Statement of Income” earlier in thisdocument.
[Notes on Revenue Recognition]
1. Breakdown information on revenue from contracts with customers
12th fiscal period (from August 1, 2021 to January 31, 2022)(Unit: thousand yen)
Revenue from contracts withcustomers (Note)
Proceeds from sale of real estate

Sales to external customers-

Utilities income-

296,154

296,154

Other-

5,664,264

Total

296,154

5,960,418(Note) Rental revenue, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13) are excluded from the above
amount as such revenue is not subject to the Revenue Recognition Accounting Standard. Revenue from contracts with customers mainly
represents proceeds from sale of real estate and utilities income.

- 21 -

2. Foundational information for understanding revenue from contracts with customers
12th fiscal period (from August 1, 2021 to January 31, 2022)
The information is as indicated in the Notes on Matters Concerning Significant Accounting Policies.
3.

Information on relationship of fulfillment of performance obligations based on contracts with customers with cashflow
generated from said contracts and amount and period of revenue expected to be recognized in the next calculation
period or thereafter from contracts with customers existing at the end of the current calculation period.
(1) Balance of contract assets and contract liabilities, etc.
(Unit: thousand yen)
12th fiscal period
From: August 1, 2021
To: January 31, 2022
Claims generated from contracts with customers (balance at beginning of fiscal year)

57,609Claims generated from contracts with customers (balance at end of fiscal year)

54,922Contract assets (balance at beginning of fiscal year)-

Contract assets (balance at end of fiscal year)-

Contract liabilities (balance at beginning of fiscal year)-

Contract liabilities (balance at end of fiscal year)-(2) Transaction value allocated to remaining performance obligations
Not applicable.
SAR does not include contracts whose terms are initially expected to be one year or less in the note on transaction
value allocated to remaining performance obligations as an expedient in practice. Also, with regard to utilities income,as SAR has the right to receive from customers an amount directly corresponding to the value for the lessees who are
customers of portions for which performance is complete by the end of the fiscal period, the amount it has the rightto claim according to Paragraph 19 of the Application Guidelines of the Accounting Standard for Revenue Recognition
is recognized as revenue. Accordingly, such is not included in the note on transaction value allocated to remaining
performance obligations through application of the provisions of Paragraph 80-22 (2) of the Accounting Standard for
Revenue Recognition.
[Notes on Segment Information]
1.

Segment information
Segment information is omitted because SAR operates a single segment, which is the real estate leasing business.

2.

Related information
11th fiscal period (from February 1, 2021 to July 31, 2021)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single product andservice category are in excess of 90% of operating revenue on the statement of income.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about each major customer
Information about each major customer is omitted because all net sales to a single external customer are less than
10% of the operating revenue on the statement of income.

- 22 -

12th fiscal period (from August 1, 2021 to January 31, 2022)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single product andservice category are in excess of 90% of operating revenue on the statement of income.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about each major customer
Information about each major customer is omitted because all net sales to a single external customer are less than
10% of the operating revenue on the statement of income.
[Notes on Per Unit Information]
11th fiscal period
From: February 1, 2021
To: July 31, 2021

12th fiscal period
From: August 1, 2021
To: January 31, 2022

Net assets per unit

53,260 yen

53,511 yen

Net income per unit

1,437 yen

1,414 yen

(Note 1) Net income per unit is calculated by dividing net income by the daily weighted average number of investment units. In addition, diluted net
income per unit is not stated, because there are no diluted investment units.
(Note 2) The basis for calculation of net income per unit is as follows:

Net income (thousand yen)Amount not attributable to common unitholders(thousand yen)
Net income attributable to common investment units(thousand yen)
Average number of investment units during period (units)[Notes on Significant Subsequent Events]
Not applicable.

- 23 -

11th fiscal period
From: February 1, 2021
To: July 31, 2021

12th fiscal period
From: August 1, 2021
To: January 31, 2022

2,407,305

2,516,993--

2,407,305

2,516,993

1,674,389

1,779,389

(10) Changes in Total Number of Investment Units Issued and Outstanding
The following are the changes in unitholders’ capital and total number of investment units issued and outstanding for the mostrecent five years.

Date

April 4, 2017
April 24, 2017
February 1, 2018

Event

Capital increase throughpublic offering
Capital increase throughthird-party allotment
Capital increase throughpublic offering

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

Unitholders’ capital(thousand yen)
Increase(Decrease)

Remarks

Balance

66,200410,900

6,173,017

39,714,142(Note 1)

3,400

414,300

317,043

40,031,185(Note 2)53,641

467,941

5,525,130

45,556,316(Note 3)February 27, 2018

Capital increase throughthird-party allotment

2,683

470,624

276,354

45,832,670(Note 4)September 5, 2018

Capital increase throughpublic offering

66,857537,4816,584,077

52,416,747(Note 5)

3,343

540,824

329,218

52,745,966(Note 6)

October 2, 2018

Capital increase throughthird-party allotment

August 1, 2020

Investment unit split

540,824

1,081,648-

52,745,966(Note 7)

August 1, 2020

Merger592,741

1,674,389-

52,745,966(Note 8)115,000

1,789,389

6,369,735

59,115,701(Note 9)August 17, 2021

Capital increase throughpublic offering(Note 1) New investment units were issued through public offering at an issue price of 96,720 yen (paid-in amount of 93,248 yen) per unit for the
purpose of procuring funds for acquisition of new properties.
(Note 2) New investment units were issued through third-party allotment at a paid-in amount of 93,248 yen per unit for the purpose of procuring funds
for repayment of borrowings.
(Note 3) New investment units were issued through public offering at an issue price of 106,724 yen (paid-in amount of 103,002 yen) per unit for the
purpose of procuring funds for acquisition of new properties.
(Note 4) New investment units were issued through third-party allotment at a paid-in amount of 103,002 yen per unit for the purpose of procuring
funds for repayment of borrowings.
(Note 5) New investment units were issued through public offering at an issue price of 101,985 yen (paid-in amount of 98,480 yen) per unit for the
purpose of procuring funds for acquisition of new properties.
(Note 6) New investment units were issued through third-party allotment at a paid-in amount of 98,480 yen per unit for the purpose of procuring funds
for repayment of borrowings.
(Note 7) SAR has conducted an investment unit split to split one investment unit into two investment units.
(Note 8) Due to the merger dated August 1, 2020, SAR allocated and delivered 1.78 SAR investment units for every 1.0 SSR investment unit. As a result,
SAR issued 592,741 new investment units.
(Note 9) New investment units were issued through public offering at an issue price of 57,330 yen (paid-in amount of 55,389 yen) per unit for the
purpose of procuring funds for acquisition of new properties- 24 -

4.

Reference Information(1) Investment Status

Type ofasset

Geographic area
(Note 1)Primary use

11th fiscal period(As of July 31, 2021)
Total amount
As a percentage
heldof total assets(million yen)(%)
(Note 2)
(Note 3)12th fiscal period(As of January 31, 2022)
Total amount
As a percentage
heldof total assets(million yen)(%)
(Note 2)
(Note 3)

Greater Tokyo

52,52629.3

52,59927.2

Other than Greater Tokyo

15,665

8.7

20,390

10.5

-

-

3,006

1.6

Other than Greater Tokyo

15,2058.5

15,142

7.8

Greater Tokyo

26,89815.0

32,317

16.7

Other than Greater Tokyo

6,246

3.5

6,245

3.2

Greater Tokyo

29,89716.7

29,76915.4

Greater Tokyo

12,726

7.1

12,685

6.6

Other than Greater Tokyo

7,669

4.3

7,639

4.0

166,836

93.1

179,797

93.0

Investment securities

692

0.4

922

0.5

Long-term loans receivable

300

0.2

-

-

Deposits and other assets

11,341

6.3

12,597

6.5

Total amount of assets

179,170

100.0

193,316100.0

OfficeGreater Tokyo
RetailRealestatein trust

Residence

Logistics facility

Hotel

Subtotal

Amount(million yen)

As a percentage
of total assets(%)

Amount(million yen)

As a percentage
of total assets(%)

Total amount of liabilities (Note 4)

89,991

50.2

97,563

50.5

Total amount of net assets (Note 4)

89,17949.8

95,75349.5(Note 1) ”Greater Tokyo” refers to Tokyo’s 23 wards, Yokohama City and Kawasaki City in the case of the office and retail asset
types, and Tokyo, Kanagawa, Saitama and Chiba Prefectures in the case of other asset types (residence, logistics
facility and hotel). The same shall apply hereinafter.
(Note 2) “Total amount held” is the carrying amount as at the date of settlement of accounts (in the case of real estate in trust,then the depreciated book value), rounded down to the nearest million yen.
(Note 3) “As a percentage of total assets” is the carrying amount of the concerned assets expressed as a percentage of thetotal amount of assets, rounded to the first decimal place.
(Note 4) “Total amount of liabilities” and “Total amount of net assets” are according to total liabilities and total net assets on
the balance sheet.

- 25 -

(2) Investment Assets① Investment securities
Asset
no.

Name of the security

MEZ-01

Star Asia Mezzanine Loan
Debt Investment Series 1

MEZ-03

Star Asia Mezzanine Loan
Debt Investment Series 3

MEZ-06

Star Asia Mezzanine Loan
Debt Investment Series 6
Total

Type of asset

Corporate
bond
Trust
beneficiaryrightsSpecifiedcorporatebond－Quantity(Units)Book value(million yen)

Fair value(million yen)

Unrealized
gain orloss(millionyen)

Remarks

Unit
price

Amount

Unit
price

－

－

400

－

400

－

(Note 1)
(Note 2)

－

－

122

－

122

－

(Note 1)
(Note 3)

－

－

400

－

400

－

(Note 1)
(Note 4)

－

－

922

－

922

－

－

Amount(Note 1) Because interest income etc. from mezzanine loan debt are based on floating interest rates, the fair value isapproximately the same as the book value and thus stated at that book value.
(Note 2) The underlying assets are trust beneficiary interests in a trust mainly comprised of Relief Premium Haneda.
(Note 3) The underlying assets are trust beneficiary interests in a trust mainly comprised of The Royal Garden Residence
Shirokanedai.
(Note 4) The underlying assets are trust beneficiary interests in a trust mainly comprised of Tajimi Logistics Center.

- 26 -

② Real estate(a) Overview of real estate (acquisition price, etc.)
Use

Propertyno.
(Note 1)
OFC-01

Minami-Azabu Shibuya
Building

OFC-03

Honmachibashi Tower

OFC-04

Nishi-Shinjuku Matsuya
Building

OFC-06

Shibuya MK Building

OFC-08Asahi Building

OFC-09Hakata-eki East Place

OFC-10
OFC-11
OFC-12
OFC-13

OfficeProperty nameNihonbashi Hamacho Park
Building
Amusement Media
Gakuin Honkan
Higashi-KobeCenter Building
Amusement Media
Gakuin Shinkan

OFC-14

Seishin BLDG.

OFC-15NK BLDG.

OFC-16

Urban Center Kanda
Tsukasamachi (Note 6)

OFC-17

Takadanobaba Access

OFC-18

Azabu Amerex BLDG.

OFC-19Hiei-Kudan BLDG.

OFC-20Shin-Yokohama Nara BLDG.

OFC-21The Portal Akihabara

OFC-22OHA Building

OFC-23

Urban Center Hakata

RTL-01

La Park Kishiwada

RTL-02

Suroy Mall Chikushino

RTL-03

Seiyu Minakuchi

RTL-05

BAGUS Ikebukuro West

RSC-01

Urban Park Azabujuban

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

RSC-10Urban Park Ichigao

Location(Note 2)
Minato Ward,Tokyo
Chuo Ward,
Osaka City, Osaka
Shibuya Ward,Tokyo
Shibuya Ward,Tokyo
Kanagawa Ward,
Yokohama City,
Kanagawa
Hakata Ward,
Fukuoka City,
Fukuoka
Chuo Ward,Tokyo
Shibuya Ward,Tokyo
Higashinada Ward,
Kobe City, Hyogo
Shibuya Ward,Tokyo
Shinjuku Ward,Tokyo
Chiyoda Ward,Tokyo
Chiyoda Ward,Tokyo
Shinjuku Ward,Tokyo
Minato Ward,Tokyo
Chiyoda Ward,Tokyo
Kohoku Ward,
Yokohama City,
Kanagawa
Chiyoda Ward,Tokyo
Tachikawa City,Tokyo
Hakata Ward,
Fukuoka City,
Fukuoka

RetailSubtotal
Kishiwada City,
Osaka
Chikushino City,
Fukuoka
Koka City,
Shiga
Toshima Ward,Tokyo

Residence

Subtotal
Minato Ward,Tokyo
Shibuya Ward,Tokyo
Naniwa Ward,
Osaka City, Osaka
Toshima Ward,Tokyo
Kashiwa City,
Chiba
Suita City,
Osaka
Suginami Ward,Tokyo
Aoba Ward,
Yokohama City,
Kanagawa- 27 -

Acquisition
price(million yen)
(Note 3)

Share ofinvestment(%)(Note 4)

Real estateappraisalvalue, etc.
(million yen)
(Note 5)Acquisition date

2,973

1.7

3,010

January 14, 2016

6,065

3.4

6,840

January 14, 2016

1,763

1.0

2,600

April 20, 2016

2,042

1.1

3,240

April 20, 2016

6,320

3.5

8,200

April 20, 2016

2,286

1.3

2,910

April 6, 2017

1,450

0.8

1,500

February 2, 2018

2,580

1.4

2,710

September 6, 2018

7,440

4.1

7,390

September 6, 2018

1,020

0.6

1,190

February 1, 201911,2006.2

11,500August 1, 2020

5,350

3.0

5,370

August 1, 2020

4,590

2.6

4,570

August 1, 2020

3,990

2.2

3,990

August 1, 2020

2,780

1.5

2,890

August 1, 2020

2,400

1.3

2,380

August 1, 2020

2,300

1.3

2,500

August 1, 2020

1,510

0.8

1,490

August 1, 2020

1,804

1.0

1,930

August 19, 2021

2,870

1.6

3,030

August 19, 2021

72,73340.5

79,240

－

5,400

3.0

5,230

August 1, 2020

6,550

3.6

6,350

August 1, 2020

3,320

1.8

3,330

August 1, 2020

2,984

1.7

3,280

August 19, 2021

18,254

10.2

18,190

－

2,045

1.1

2,680

January 14, 2016

6,315

3.5

9,170

January 14, 2016

1,490

0.8

1,560

April 20, 2016

1,460

0.8

1,550

February 1, 2017

1,186

0.7

1,190

April 6, 2017

1,550

0.9

1,650

February 2, 2018

1,167

0.6

1,180

February 2, 2018

1,810

1.0

2,010

March 13, 2020

Residence

Use

Propertyno.
(Note 1)

Property name

RSC-11

Urban Park Gyotoku

RSC-12

Shiroi Logiman

RSC-13

Urban Park Sekime

RSC-14

Urban Park Imazato

RSC-15

Urban Park Yoyogi

RSC-16

Urban Park Tokiwadai Koen

RSC-17

Urban Park Mitsuike Koen

RSC-18

Urban Park Ryogoku

RSC-19Urban Park Mizonokuchi

RSC-20Urban Park Miyamaedaira

RSC-21

Urban Park Tsurumi

Location(Note 2)
Ichikawa City,
Chiba
Shiroi City,
Chiba
Joto Ward,
Osaka City, Osaka
Ikuno Ward,
Osaka City, Osaka
Shibuya Ward,Tokyo
Hodogaya Ward,
Yokohama City,
Kanagawa
Tsurumi Ward,
Yokohama City,
Kanagawa
Sumida Ward,Tokyo
Takatsu Ward,
Kawasaki City,
Kanagawa
Miyamae Ward,
Kawasaki City,
Kanagawa
Tsurumi Ward,
Yokohama City,
Kanagawa

Logistics facility

Subtotal
Iwatsuki Ward,
Saitama City,
Saitama
Kanagawa Ward,
Yokohama City,
Kanagawa
Funabashi City,
Chiba

Share ofinvestment(%)(Note 4)

Real estateappraisalvalue, etc.
(million yen)
(Note 5)Acquisition date

1,430

0.8

1,540

March 13, 2020

2,470

1.4

2,470

August 1, 2020

2,150

1.2

2,300

August 1, 2020

993

0.6

1,040

August 1, 2020

1,740

1.0

1,850

August 1, 2020

3,506

2.0

3,880

October 16, 2020

3,160

1.8

3,470

January 8, 2021

1,115

0.6

1,200

August 19, 2021

2,019

1.1

2,100

August 19, 2021

1,060

0.6

1,200

August 19, 2021

1,113

0.6

1,190

August 19, 2021

37,77921.0

43,230

－

6,942

3.9

7,660

January 14, 2016

3,560

2.0

4,330

January 14, 2016

7,875

4.4

8,870

January 14, 2016

LGC-01

Iwatsuki Logistics

LGC-02

Yokohama Logistics

LGC-03

Funabashi Logistics

LGC-04

Baraki Logistics

Ichikawa City,
Chiba

4,700

2.6

4,980

April 6, 2017

LGC-05Tokorozawa Logistics

Tokorozawa City,
Saitama

1,300

0.7

1,520

April 6, 2017

LGC-07

Funabashi Nishiura
Logistics II

Funabashi City,
Chiba

821

0.5

890

February 2, 2018

LGC-08

Matsubushi Logistics

Kitakatsushika-gun,
Saitama

2,755

1.5

2,970

February 2, 2018

LGC-09Funabashi Hi-Tech Park
Factory I

Funabashi City,
Chiba

1,710

1.0

1,710

August 1, 2020

LGC-10

Funabashi Hi-Tech Park
Factory II

Funabashi City,
Chiba

702

0.4

704

August 1, 2020

Subtotal

Hotel

Acquisition
price(million yen)
(Note 3)30,365

16.9

33,634

－

2,069

1.2

2,270

January 14, 2016

1,750

1.0

1,410

January 14, 2016

3,827

2.1

3,530

April 6, 2017

3,248

1.8

3,200

April 6, 2017

1,970

1.1

1,920

September 6, 2018

2,500

1.4

2,440

September 6, 2018

HTL-01R&B Hotel Umeda East

Kita Ward,
Osaka City, Osaka

HTL-02

Smile Hotel Namba

Naniwa Ward,
Osaka City, Osaka

HTL-03REMBRANDT STYLE Tokyo
Nishikasai (Note 7)

HTL-04

BEST WESTERN Yokohama

HTL-05

Hotel WBF Fukuoka Tenjin
Minami

HTL-06

GLANSIT AKIHABARA

HTL-07REMBRANDT STYLE Tokyo
Nishikasai Grande (Note 8)

Edogawa Ward,
Tokyo

3,180

1.8

3,130

September 6, 2018

HTL-08

KOKO HOTEL Osaka Namba

Naniwa Ward,
Osaka City, Osaka

2,000

1.1

1,410

September 6, 2018

Edogawa Ward,Tokyo
Tsurumi Ward,
Yokohama City,
Kanagawa
Chuo Ward,
Fukuoka City,
FukuokaChiyoda Ward,Tokyo

Subtotal
Total- 28 -

20,54411.4

19,310－179,675

100.0

193,604－

(Note 1) “Property no.” is assigned to SAR’s investment assets by categorizing into office (OFC), retail facility (RTL), residence (RSC), logistics facility(LGC) and hotel (HTL), and numbering in order by category. The same shall apply hereinafter.
(Note 2) “Location” is the smallest independent administrative district in which each investment asset is located.
(Note 3) “Acquisition price” indicates the sale and purchase price stated in the sale and purchase agreement for each investment asset. (Notincluding consumption tax and local consumption tax.) However, in the case of Minami-Azabu Shibuya Building, since the price for each
investment asset among multiple assets is not set in the sale and purchase agreement, the total sale and purchase price is divided
proportionally based on the ratio of the appraisal value of the properties at the time of acquisition and indicated as the acquisition price.
The appraisal value indicated in the real estate appraisal report with July 31, 2020, as the appraisal date, which is the receipt price, isindicated for properties that were succeeded from SSR due to the absorption-type merger with SAR as the surviving corporation on August
1, 2020.
(Note 4) “Share of investment” is the acquisition price of the investment asset indicated as the ratio of the total of acquisition price, rounded to thefirst decimal place.
(Note 5) Daiwa Real Estate Appraisal Co., Ltd., Japan Real Estate Institute and The Tanizawa Sogo Appraisal co., Ltd. are entrusted with appraisals.
Real estate appraisal values are the figures indicated in the real estate appraisal report with January 31, 2022, as the date of value and arerounded to the nearest million yen. For details, please refer to “(d) Summary of Real Estate Appraisal Reports, Etc.”.
(Note 6) The name was changed on February 1, 2022 (former property name: Tsukasamachi BLDG.). The same shall apply hereinafter.
(Note 7) The name was changed on December 1, 2021 (former property name: Best Western Tokyo Nishikasai). The same shall apply hereinafter.
(Note 8) The name was changed on December 1, 2021 (former property name: Best Western Tokyo Nishikasai Grande). The same shall apply
hereinafter.

(b) Portfolio Summarya.

By Geographic Area
Geographic area

GreaterTokyo

Acquisition price(million yen)

Share
(%)
(Note 1)

5 central wards of Tokyo (Note 2)

56,24831.3

Other areas in Greater Tokyo

73,72041.0

72.3

Other than Greater Tokyo

49,707

27.7

Total

179,675100.0(Note 1) “Share” is calculated on the basis of acquisition price, rounded to the first decimal place. Accordingly, the shares
may not add up to 100%. The same shall apply hereinafter in “c. By Asset Type (Use).”(Note 2) “5 central wards of Tokyo” refers to Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards. The same shall apply
hereinafter.
(a) OfficeGeographic area
GreaterTokyo

Acquisition price(million yen)

Share
(%)

5 central wards of Tokyo

43,64860.0

Other areas in Greater Tokyo

8,620

11.9

71.9

Other than Greater Tokyo

20,465

28.1

Total

72,733100.0- 29 -

(b) Retail
Acquisition price(million yen)

Geographic area
GreaterTokyo

5 central wards of Tokyo
Other areas in Greater Tokyo

Share
(%)
-

-

2,984

16.3

16.3

Other than Greater Tokyo

15,270

83.7

Total

18,254100.0(c) Residence
Acquisition price(million yen)

Geographic area
Greater
Tokyo

Share
(%)

5 central wards of Tokyo

10,100

26.7

Other areas in Greater Tokyo

21,49656.9

83.6

Other than Greater Tokyo

6,183

16.4

Total

37,779100.0(d) Logistics facility
Acquisition price(million yen)

Geographic area
GreaterTokyo

5 central wards of Tokyo

Share
(%)
-

-

30,365

100.0

100.0
Other areas in Greater Tokyo

Other than Greater Tokyo
Total

-

-

30,365100.0(e) Hotel
Acquisition price(million yen)

Geographic area
Greater
Tokyo

b.

Share
(%)

5 central wards of Tokyo

2,500

12.2

Other areas in Greater Tokyo

10,255

49.9

62.1

Other than Greater Tokyo

7,789

37.9

Total

20,544100.0

By Size
Share(%)(Note)

Acquisition price

Number ofproperties

10 billion yen or more

1

1.7

9

15.0

47

78.3

Less than 1 billion yen

3

5.0

Total

60

100.0

5 billion yen or more
but less than 10 billion yen
1 billion yen or more
but less than 5 billion yen(Note)“Share” is calculated on the basis of number of properties.

- 30 -c.

By Asset Type (Use)
Number ofproperties

Acquisition price(million yen)

Office20

72,733

40.5

Retail4

18,254

10.2

Residence

19

37,77921.0

Logistics facility

930,365

16.9

Hotel

8

20,544

11.4

Total

60

179,675

100.0

Use

- 31 -

Share(%)

(c) Status of Leasing
Operatingrevenue
Number offrom leasing
tenants(thousand(Note 1)yen)
(Note 2)

Security andguarantee
deposits(thousandyen)(Note 3)

Leased area Leasable area
(m2)
(m2)
(Note 4)(Note 5)

Occupancy
rate(%)(Note 6)

Propertyno.

Property nameConstruction
completion

OFC-01

Minami-Azabu Shibuya
Building

June 1993

6

75,619128,023

3,263.08

3,263.08

100.0

OFC-03

Honmachibashi Tower

February 2010

6(Note 7)

217,480

245,054

10,489.58

10,489.58

100.0

OFC-04

Nishi-Shinjuku Matsuya
Building

May 1987

10

100,011150,1083,183.75

3,547.74

89.7

OFC-06

Shibuya MK Building

July 1993

4

79,807

102,599

1,612.88

1,612.88

100.0

OFC-08Asahi Building

November 1994

20

226,273

248,029

8,672.01

8,672.01

100.0

OFC-09Hakata-eki East Place

February 1986

18

109,992

101,117

4,551.16

4,632.70

98.2

OFC-10Nihonbashi Hamacho Park
Building

July 1992

3

49,80776,945

1,433.88

1,913.44

74.9

OFC-11

Amusement Media Gakuin
HonkanNovember 1994

1

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)1,892.18

100.0

OFC-12

Higashi Kobe Center Building

January 1992

53

14,469.70

16,965.55

85.3

OFC-13

Amusement Media Gakuin
ShinkanJanuary 1999

1

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)781.33100.0

OFC-14

Seishin BLDG.

March 1989

20

257,794

333,1115,616.79

5,616.79

100.0

OFC-15NK BLDG.

October 1991

10

129,510

157,380

3,394.35

3,394.35

100.0

OFC-16

Urban Center Kanda
Tsukasamachi

January 1988

5

68,261

156,767

1,638.22

3,250.68

50.4

OFC-17

Takadanobaba Access

January 1994

8

112,884

119,400

3,691.49

3,691.49

100.0

OFC-18

Azabu Amerex BLDG.

June 1988

7

71,22966,0792,240.03

2,240.03

100.0

OFC-19Hiei-Kudan BLDG.

September 1991

10

66,43487,8872,298.86

2,298.86

100.0

OFC-20Shin-Yokohama Nara BLDG.

March 1992

17

80,96485,3893,654.52

4,057.89

90.1

OFC-21The Portal Akihabara

May 2002

7

32,98634,014840.54

941.6989.3

OFC-22OHA Building

May 1990

3

54,372

51,8492,821.97

3,400.47

83.0

OFC-23

Urban Center Hakata

August 2020

1

69,58775,0052,639.18

2,639.18

100.0

RTL-01

La Park Kishiwada

August 1994

51
(Note 10)496,379

229,598

40,337.76(Note 10)40,875.15(Note 10)98.7

RTL-02

Suroy Mall Chikushino

June 2007

23

354,964445,363

30,999.06

31,088.53

99.7

RTL-03

Seiyu Minakuchi

May 1999

1

Not disclosed Not disclosed(Note 9)(Note 9)23,814.87

23,814.87

100.0

RTL-05

BAGUS Ikebukuro West

November 1992

1

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)1,497.45

100.0

RSC-01

Urban Park Azabujuban

November 1999

43

1,986.76

100.0- 32 -

279,400

55,790285,507

11,027

1,986.76

Property
no.

Property nameConstruction
completion

Operatingrevenue
Number offrom leasing
tenants(thousand(Note 1)yen)
(Note 2)

Security andguarantee
deposits(thousandyen)(Note 3)

Leased area Leasable area
(m2)
(m2)
(Note 4)(Note 5)

Occupancy
rate(%)(Note 6)

RSC-02

Urban Park Daikanyama

Existing:
November 1982
Newly built:
May 2006

RSC-05

Urban Park Namba

January 201393

41,899-2,068.57

2,584.81

80.0

RSC-06

Urban Park Gokokuji

February 1990

80

38,3584,539

1,471.45

1,964.04

74.9

RSC-07

Urban Park Kashiwa

August 1997

39

37,566

7,788

2,814.32

2,954.77

95.2

RSC-08

Urban Park Ryokuchi Koen

March 1989

54

55,6338,815

4,894.52

5,508.94

88.8

RSC-09Urban Park Koenji

October 1987

62

33,5595,467

1,252.39

1,365.48

91.7

RSC-10Urban Park Ichigao

July 1998

60

57,627

17,7484,259.94

4,322.62

98.5

RSC-11

Urban Park Gyotoku

March 1995

40

44,13015,6192,611.64

2,976.36

87.7

RSC-12

Shiroi Logiman

May 1995

292

140,695

13,752

21,468.46

21,904.21

98.0

RSC-13

Urban Park Sekime

August 1989

122

81,4049,510

7,323.93

7,693.13

95.2

RSC-14

Urban Park Imazato

December 1991

68

39,7691,857

4,648.64

4,648.64

100.0

RSC-15

Urban Park Yoyogi

September 201726

37,585

7,346

1,218.79

1,286.50

94.7

RSC-16

Urban Park Tokiwadai Koen

February 1994

140

141,887

28,986

13,926.00

14,058.00

99.1

RSC-17

Urban Park Mitsuike Koen

March 1992

134

127,356

27,805

9,966.00

10,362.00

96.2

RSC-18

Urban Park Ryogoku

October 1997

29

33,0197,092

2,033.73

2,304.53

88.2

RSC-19Urban Park Mizonokuchi

August 1988

66

57,055

4,335

3,713.81

4,160.00

89.3

RSC-20Urban Park MiyamaedairaJune 2021

49

22,225

1,483

1,957.97

1,957.97

100.0

RSC-21

Urban Park Tsurumi

February 1994

1

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)3,145.41

100.0

LGC-01

Iwatsuki Logistics

October 20143

30,190.81

30,190.81

100.0

LGC-02

Yokohama Logistics

October 1994

1

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)18,142.08

100.0

LGC-03

Funabashi Logistics

Building 1:
September 1992
Building 2:
August 1997

4

34,901.67

38,086.56

91.6

LGC-04

Baraki Logistics

August 20152

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)12,126.28

100.0

LGC-05Tokorozawa Logistics

April 1999

1

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)5,994.75

100.0

Warehouse:
March 1991
Factory: May 1972
Office: May 19861

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)6,315.87

100.0

March 19971

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)19,833.47

100.0

LGC-07

Funabashi Nishiura Logistics II

LGC-08

Matsubushi Logistics

65

186,998

75,3335,399.95

5,977.18

90.3- 33 -

198,764

261,389

97,014

83,426

Operating
revenue
Number offrom leasing
tenants(thousand(Note 1)yen)
(Note 2)

Security andguarantee
deposits(thousandyen)(Note 3)

Leased area Leasable area
(m2)
(m2)
(Note 4)(Note 5)

Occupancy
rate(%)(Note 6)

Propertyno.

Property nameConstruction
completion

LGC-09Funabashi Hi-Tech Park
Factory I

May 2003

1

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)8,340.98

100.0

LGC-10

Funabashi Hi-Tech Park
Factory II

September 2001

1

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)4,233.92

100.0

HTL-01R&B Hotel Umeda East

October 2000

1

62,14173,4953,940.93

3,940.93

100.0

HTL-02

Smile Hotel Namba

February 2008

1

22,374-

1,711.42

1,711.42

100.0

HTL-03REMBRANDT STYLE Tokyo
Nishikasai

March 1991

1

84,60084,6005,293.88

5,293.88

100.0

HTL-04

BEST WESTERN Yokohama

September 1987

1

80,40080,4004,686.09

4,686.09

100.0

HTL-05

Hotel WBF Fukuoka Tenjin
MinamiFebruary 20171

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)2,281.49

100.0

HTL-06

GLANSIT AKIHABARA

September 20171

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)1,089.06

100.0

HTL-07REMBRANDT STYLE Tokyo
Nishikasai Grande

February 20171

70,002

116,670

2,755.19

2,755.19

100.0

HTL-08

KOKO HOTEL Osaka Namba

April 2017

1

-

-

2,061.38

2,061.38

100.0

5,890,999

5,481,826

435,896.19

450,823.43

96.7

Total

(Note 1)

1,772

“Number of tenants” is the number of tenants (excluding parking) under the lease agreement stated in the leaseagreement for each investment asset as of January 31, 2022. If a single tenant is leasing multiple rental units in an
investment asset, the tenant is counted as 1 tenant for the concerned investment asset. If a single tenant isleasing rental units across multiple investment assets, the tenant is counted as separate tenants and the sum total
number of tenants is stated in the total column. Furthermore, in cases where a pass-through-type master leaseagreement under which rent from end-tenants is received in principle (“pass-through-type master lease”) has
been concluded for the concerned investment asset, the total number of end-tenants is stated. In cases where amaster lease agreement agreeing to the effect that the rent under the master lease agreement shall be a fixed
rent (“rent-guaranteed type master lease”) has been concluded for the concerned investment asset, the numberof tenants is 1 and the sum total of these is stated.

(Note 2)

(Note 3)

“Operating revenue from leasing” is rental revenue, common area maintenance revenue, parking revenue andother revenue generated from real estate held during the fiscal period under review (including other leasebusiness revenue).
“Security and guarantee deposits” is the sum total amount of tenant security and guarantee deposits required
based on the lease agreement (including deposits based on parking, antenna, rooftop and other agreements; theamount after depreciation) for each investment asset as of January 31, 2022 (limited to those occupied as of saiddate). Furthermore, in cases where a pass-through-type master lease agreement has been concluded for theconcerned investment asset, it is the sum total amount of tenant security and guarantee deposits under lease(Note 4)agreements concluded with end-tenants.
“Leased area” is the sum total of the leased area stated in the lease agreement for each investment asset as ofJanuary 31, 2022. Furthermore, in cases where a master lease agreement has been concluded for the concerned
investment asset, it is the sum total of the leased area under lease agreements concluded with end-tenants forproperties under a pass-through-type master lease, and it is the leased area under the master lease agreement
for properties under a rent-guaranteed type master lease.

(Note 5)

“Leasable area” is the floor area regarded as being available for leasing based on the lease agreement or building
drawing, etc. of the building for each investment asset as of January 31, 2022.

(Note 6)

“Occupancy rate” is the ratio of leased area to leasable area for each investment asset as of January 31, 2022,
rounded to the first decimal place. In addition, in the total column, it is the ratio of the sum total of leased area tothe sum total of leasable area for each investment asset, rounded to the first decimal place.
- 34 -

(Note 7)

Of the tenants of the property, a single company leases all 36 units of the residential portion, of which 30 units
are under a rent-guaranteed type master lease agreement and 6 units are under a pass-through-type master
lease agreement.

(Note 8)(Note 9)In the table, “Number of tenants,” “Security and guarantee deposits,” “Leased area” and “Occupancy rate” arebased on lease agreements valid as of January 31, 2022, even if there is a notice of cancellation or termination oflease agreements with end-tenants or unpaid rent.
Not disclosed, because consent for disclosure has not been obtained from the tenants.

(Note 10) The number of tenants and each area related to the installation of ATM are not included.

- 35 -

(d) Summary of Real Estate Appraisal Reports, Etc.
Summary of appraisal reports

Use

OfficePropertyno.

Property nameAppraisal
Appraisal
value
firm
(million yen)
(Note 1)
(Note 2)

DCF
methodIndicatedvalue(million yen)

Cap rate(%)

Indicated Discount
value
rate
(million yen)(%)

Appraisal
NOI yield
NOI(%)(million yen)
(Note 4)
Terminal(Note 3)cap rate(%)

Minami-Azabu Shibuya Building

Daiwa

3,010

3,110

3.9

2,960

3.5

4.1

139

4.7

OFC-03

Honmachibashi Tower

Daiwa

6,840

6,910

4.2

6,810

4.0

4.4

309

5.1

OFC-04

Nishi-Shinjuku Matsuya Building

Daiwa

2,600

2,540

4.1

2,620

3.9

4.3

119

6.7

OFC-06

Shibuya MK Building

JREI

3,240

3,280

3.4

3,200

3.2

3.5

116

5.7

OFC-08Asahi Building

JREI

8,200

8,270

3.5

8,120

3.3

3.6

321

5.1

OFC-09Hakata-eki East Place

Daiwa

2,910

2,890

4.6

2,920

4.4

4.8

139

6.1

OFC-10Nihonbashi Hamacho Park Building Daiwa

1,500

1,500

4.4

1,500

4.2

4.6

67

4.7

OFC-11

Amusement Media Gakuin
Honkan

Daiwa

2,710

2,770

3.6

2,680

3.4

3.8

103

4.0

OFC-12

Higashi Kobe Center Building

Tanizawa

7,390

7,440

4.9

7,370

5.0

5.1

413

5.5

OFC-13

Amusement Media Gakuin
Shinkan

JREI

1,190

1,200

3.3

1,170

3.1

3.4

41

4.0

OFC-14

Seishin BLDG.

JREI

11,50011,6003.4

11,300

3.1

3.4

403

3.6

OFC-15NK BLDG.

Tanizawa

5,370

5,540

3.5

5,300

3.6

3.7

205

3.8

OFC-16

Urban Center Kanda Tsukasamachi Tanizawa

4,570

4,780

3.6

4,480

3.7

3.8

179

3.9

OFC-17

Takadanobaba Access

Tanizawa

3,990

4,210

3.7

3,900

3.8

3.9

162

4.1

OFC-18

Azabu Amerex BLDG.

JREI

2,890

2,900

3.5

2,880

3.2

3.5

106

3.8

OFC-19Hiei-Kudan BLDG.

Tanizawa

2,380

2,530

3.5

2,320

3.6

3.7

96

4.0

OFC-20Shin-Yokohama Nara BLDG.

JREI

2,500

2,510

4.4

2,480

4.1

4.5

116

5.1

OFC-21The Portal Akihabara

Tanizawa

1,490

1,570

3.7

1,460

3.8

3.9

60

4.0

OFC-22OHA Building

Daiwa

1,930

1,960

4.5

1,910

4.3

4.7

94

5.2

OFC-23

Urban Center Hakata

JREI

3,030

3,070

4.1

2,980

3.9

4.3

126

4.4

79,24080,580-78,360

-

-

3,312

4.6

JREI

5,230

5,240

6.4

5,210

6.2

6.6

385

7.1

Tanizawa

6,350

6,340

5.7

6,350

5.8

5.9

372

5.7

Seiyu Minakuchi

JREI

3,330

3,360

6.7

3,300

6.5

7.0

246

7.4

RTL-05

BAGUS Ikebukuro West

JREI

3,280

3,350

3.6

3,210

3.4

3.8

123

4.1

18,19018,290-18,070

-

-

1,127

6.2

RSC-01

Urban Park Azabujuban

JREI

2,680

2,710

3.2

2,650

3.0

3.3

90

4.4

RSC-02

Urban Park Daikanyama

JREI

9,170

9,290

3.1

9,040

2.9

3.2

303

4.8

RSC-05

Urban Park Namba

Daiwa

1,560

1,590

4.6

1,540

4.4

4.8

75

5.0

RSC-06

Urban Park Gokokuji

JREI

1,550

1,560

3.7

1,540

3.5

3.8

64

4.4

RSC-07

Urban Park Kashiwa

Tanizawa

1,190

1,210

4.5

1,180

4.6

4.7

59

5.0

RSC-08

Urban Park Ryokuchi Koen

Tanizawa

1,650

1,670

4.6

1,640

4.7

4.8

87

5.6

RSC-09Urban Park Koenji

Tanizawa

1,180

1,200

4.0

1,170

4.1

4.2

55

4.7

RSC-10Urban Park Ichigao

JREI

2,010

2,020

4.0

1,990

3.8

4.1

86

4.8

RSC-11

Urban Park Gyotoku

Tanizawa

1,540

1,590

4.1

1,520

4.2

4.3

68

4.8

RSC-12

Shiroi Logiman

Tanizawa

2,470

2,440

5.1

2,480

5.2

5.3

141

5.7

RSC-13

Urban Park Sekime

Tanizawa

2,300

2,330

4.4

2,290

4.5

4.6

113

5.2

RSC-14

Urban Park Imazato

Tanizawa

1,040

1,050

4.6

1,040

4.7

4.8

53

5.4

RSC-15

Urban Park Yoyogi

JREI

1,850

1,860

3.4

1,830

3.1

3.5

64

3.7

RSC-16

Urban Park Tokiwadai Koen

Tanizawa

3,880

3,920

4.4

3,860

4.5

4.6

192

5.5

RSC-17

Urban Park Mitsuike Koen

Tanizawa

3,470

3,510

4.6

3,450

4.7

4.8

174

5.5

RSC-18

Urban Park Ryogoku

Tanizawa

1,200

1,220

4.0

1,190

4.1

4.2

51

4.6

RSC-19Urban Park Mizonokuchi

Tanizawa

2,100

2,130

4.3

2,080

4.4

4.5

96

4.8

RTL-01

La Park Kishiwada

RTL-02

Suroy Mall Chikushino

RTL-03

Subtotal

Residence

Direct capitalization
methodOFC-01

Subtotal

RetailIncome approach- 36 -

Residence

RSC-20Urban Park Miyamaedaira

Daiwa

RSC-21

Urban Park Tsurumi

Tanizawa

Subtotal

Logistics
facility

1,220

4.1

1,190

3.9

4.3

51

4.8

1,190

1,200

4.5

1,180

4.9

4.7

57

5.2

43,23043,720-42,860

-

-

1,882

5.0

LGC-01

Iwatsuki Logistics

Daiwa

7,660

7,770

4.2

7,610

4.0

4.4

333

4.8

LGC-02

Yokohama Logistics

Daiwa

4,330

4,380

4.0

4,310

3.8

4.2

205

5.8

LGC-03

Funabashi Logistics

Daiwa

8,870

8,970

4.0

8,820

3.8

4.2

407

5.2

LGC-04

Baraki Logistics

Tanizawa

4,980

5,080

3.7

4,940

3.6

3.9

190

4.0

LGC-05Tokorozawa Logistics

JREI

1,520

1,540

4.7

1,500

4.3

5.0

75

5.8

LGC-07

Funabashi Nishiura Logistics II

Daiwa

890

890

5.4

890

5.2

5.6

57

7.0

LGC-08

Matsubushi Logistics

JREI

2,970

2,990

4.9

2,950

4.4

5.2

151

5.5

LGC-09Funabashi Hi-Tech Park Factory I

JREI

1,710

1,730

6.4

1,680

6.3

6.7

111

6.5

LGC-10

Funabashi Hi-Tech Park Factory II

JREISubtotal

704

710

6.2

698

5.4

7.0

48

6.8

33,63434,060-33,398

-

-

1,578

5.2

HTL-01R&B Hotel Umeda East

Daiwa

2,270

2,290

4.6

2,260

4.4

4.8

114

5.5

HTL-02

Smile Hotel Namba

Daiwa

1,410

1,470

4.7

1,380

4.5

4.9

75

4.3

JREI

3,530

3,600

4.3

3,460

4.1

4.5

163

4.2

JREI

3,200

3,250

4.4

3,150

4.2

4.6

147

4.5

HTL-04REMBRANDT STYLE Tokyo
Nishikasai
BEST WESTERN Yokohama

HTL-05

Hotel WBF Fukuoka Tenjin Minami

Tanizawa

1,920

1,960

4.4

1,900

4.4

4.6

87

4.4

HTL-06

GLANSIT AKIHABARA

Tanizawa

2,440

2,510

3.9

2,410

3.8

4.1

98

3.9

HTL-07REMBRANDT STYLE Tokyo
Nishikasai Grande

Tanizawa

3,130

3,160

4.0

3,120

3.9

4.2

126

4.0

HTL-08

KOKO HOTEL Osaka Namba

Daiwa

HTL-03

Hotel

1,200

Subtotal
Total

1,410

1,450

4.5

1,390

4.1

4.5

72

3.6

19,31019,690-19,070

-

-

881

4.3

193,604

196,340-

191,758

-

-

8,779

4.9

(Note 1) Under “Appraisal firm,” “Daiwa,” “JREI,” and “Tanizawa” stand for Daiwa Real Estate Appraisal Co., Ltd., Japan Real
Estate Institute, and The Tanizawa Sogo Appraisal co., Ltd., respectively(Note 2) “Appraisal value” is as of January 31, 2022, as the date of value.
(Note 3) “NOI” is net operating income calculated under the direct capitalization method stated in the appraisal report,
rounded to the nearest million yen.
(Note 4) “Appraisal NOI yield” is based on net operating income calculated under the direct capitalization method stated in
the appraisal report and expressed as a percentage of acquisition price, rounded to the first decimal place.

- 37 -

(e) Information on Major Real Estate Properties
Of investment assets, there is no property that falls under the category of major real estate properties (buildings/facilities
pertaining to land recognized to be used collectively, of which total rental revenue accounts for 10% or more of the sum totalof total rental revenue of investment assets) as of January 31, 2022. Of investment assets, the following are top fiveproperties in terms of total rental revenue as of January 31, 2022.
Changes in occupancy rate (%) (Note)
January 31, 2020
July 31, 2020
January 31, 2021
July 31, 2021
January 31, 2022
La Park Kishiwada

-

-

99.0

99.0

98.7

Suroy Mall Chikushino

-

-

97.6

97.6

99.7

Higashi Kobe Center
Building

94.4

96.3

96.2

85.1

85.3

Funabashi Logistics

91.6

91.6

91.6

91.6

91.6

-

-

100.0

100.0

100.0

Seishin BLDG.
(Note)“Changes in occupancy rate” is the ratio of leased area to leasable area for each investment asset as of the record
date, rounded to the first decimal place.

(f) Top 10 End-Tenants in Terms of Leased Area
The following table lists the tenants ranking in the top ten tenants in terms of leased area of investment assets.
As a percentage ofLeased area
total leasable area
Name of tenant
Name of property occupied(m2)(%)(Note 1)
(Note 2)
1

Not disclosed (Note 3)

Iwatsuki Logistics

Not disclosed (Note 3)

6.6

2

Seiyu Co., Ltd.

Seiyu Minakuchi

23,814.87

5.3

3

Not disclosed (Note 3)

Funabashi Logistics

Not disclosed (Note 3)

4.8

4Tokyo Nohin Daiko

Matsubushi Logistics

19,833.47

4.4

5

Not disclosed (Note 3)

Yokohama Logistics

Not disclosed (Note 3)

4.0

6

Nagasakiya Co., Ltd.

15,429.00

3.4

7Rembrandt Inn

12,735.16

2.8

8

Not disclosed (Note 3)

Funabashi Hi-Tech Park Factory I

Not disclosed (Note 3)

1.9

9

Mr Max Holdings Ltd.

Suroy Mall Chikushino

7,997.08

1.8

10

Sakoda Co., Ltd.

Suroy Mall Chikushino

Not disclosed (Note 3)

1.7

165,500.91

36.7

La Park Kishiwada
Shiroi Logiman
REMBRANDT STYLE Tokyo
Nishikasai
BEST WESTERN Yokohama
REMBRANDT STYLE Tokyo
Nishikasai Grande

Total of the top 10 tenants(Note 1) “Leased area” is the sum total of the leased area stated in the lease agreement for each investment asset as ofJanuary 31, 2022.
(Note 2) “As a percentage of total leasable area” is the area leased to the tenant expressed as a percentage of the sum
total of leasable area of all investment assets, rounded to the first decimal place.
(Note 3) Not disclosed, because consent for disclosure has not been obtained from the end-tenants, etc.

- 38 -

(g) Capital Expendituresa.

Schedule of Capital Expenditures for the 13th fiscal period
The following are the principal capital expenditures arising from renovation construction works, etc. currently
planned for the assets held by SAR as of January 31, 2022. Please note that the expected construction amounts
include portions that are expensed as a separate account item of accounting costs.

PurposeScheduled period

Estimated construction costs(thousand yen)Amount of Total
Total
payment amountamountduringalready
periodpaid

Takadanobaba Access(Shinjuku Ward, Tokyo)

Outdoor-air processing
unit renewal work

From: Apr. 2022
To: May 2022

36,000－－Urban Center Kanda
Tsukasamachi(Chiyoda Ward, Tokyo)

Common area renewal
work (3F, 6F and 7F)

From: Feb. 2022
To: Mar. 2022

33,300－－Air-conditioning system
renewal work (8F and
11F)

From: Apr. 2022
To: May 2022

27,510－－Higashi Kobe Center Building(Kobe City, Hyogo)

Key box renewal work

From: Jun. 2022
To: Jul. 2022

27,500－－Hakata-eki East Place(Fukuoka City, Fukuoka)

Air-conditioning
equipment renewal work
(5F and 6F)

From: Feb. 2022
To: May 2022

26,400－－Higashi Kobe Center Building(Kobe City, Hyogo)

Mechanical parking
renovation work

From: May 2022
To: Jul. 2022

22,605－－

La Park Kishiwada(Kishiwada City, Osaka)

Painting of exterior walls

From: Mar. 2022
To: May 2022

22,000－－

Funabashi Logistics(Funabashi City, Chiba)

Renewal work of airconditioning system of
low-temperature storage

From: Feb. 2022
To: May 2022

19,700－－

La Park Kishiwada(Kishiwada City, Osaka)

Restroom renovation
work

From: Apr. 2022
To: May 2022

18,000－－Urban Park Mitsuike Koen
(Yokohama City, Kanagawa)Elevator renewal work

From: Jul. 2022
To: Jul. 2022

18,000－－Shin-Yokohama Nara BLDG.
(Yokohama City, Kanagawa)

Mechanical parking
renovation work

From: Jun. 2022
To: Jun. 2022

17,176－－

OHA Building(Tachikawa City, Tokyo)

Car lift renewal work

From: Jun. 2022
To: Jul. 2022

13,700－－OHA Building(Tachikawa City, Tokyo)

Switching to LED lighting(1F, 2F, 3F and 4F)

From: Jul. 2022
To: Jul. 2022

12,300－－

Honmachibashi Tower(Osaka City, Osaka)

Switching to LED lighting(two floors)

From: Mar. 2022
To: Mar. 2022

12,000－－

Matsubushi Logistics(Kitakatsushika-gun, Saitama)

Switching to LED lighting
equipment

From: Feb. 2022
To: Jul. 2022

12,000－－BEST WESTERN Yokohama
Yokohama City, Kanagawa

DC power supply
equipment renewal work

From: Feb. 2022
To: Jul. 2022

10,557－－

La Park Kishiwada
Kishiwada City, Osaka

Renovation work ofelectrical workpieces forprivate use

From: Jul. 2022
To: Jul. 2022

10,000－－Name of real estate, etc.
(Location)

Shin-Yokohama Nara BLDG.
(Yokohama City, Kanagawa)- 39 -

b.

Capital Expenditures during the 12th fiscal period
The following summarizes the primary construction works that constitute capital expenditures implemented for theassets held by SAR as of January 31, 2022, during the 12th fiscal period. Capital expenditures for the 12th fiscal
period amounted to 424,722 thousand yen and, when combined with the 181,998 thousand yen in repair expenses
charged to the same period, it totals 606,720 thousand yen in construction works implemented.
Name of real estate, etc.
(Location)
Higashi Kobe Center Building(Kobe City, Hyogo)
Urban Center
Kanda Tsukasamachi(Chiyoda Ward, Tokyo)
Higashi Kobe Center Building(Kobe City, Hyogo)

Purpose

PeriodConstruction costs(thousand yen)

Automatic fire alarm
facility renewal work

From: Sep. 2021
To: Jan. 2022

51,366

Phase 1 renewal work

From: Nov. 2021
To: Jan. 2022

44,091

Central monitoring panel
renewal work
Air-conditioning
equipment renewal work
(5F and 6F)
Air-conditioning
equipment renewal work
(9F and 10F)
Air-conditioning system
renewal work (Phase 8)

From: May 2021
To: Jan. 2022

34,526

From: Nov. 2021
To: Dec. 2021

32,677

From: Dec. 2021
To: Jan. 2022

26,717

From: Dec. 2021
To: Dec. 2021

21,336Exterior wall renovation
work

From: Sep. 2021
To: Jan. 2022

20,389Seishin BLDG.
(Shinjuku Ward, Tokyo)

Air-conditioning system
renewal work (10F)

From: Nov. 2021
To: Jan. 2022

19,488

Urban Park Sekime

Phase 2 Large-scalerenovation work

From: Oct. 2021
To: Dec. 2021

18,569－155,559

Shin-Yokohama Nara BLDG.
(Yokohama City, Kanagawa)Shin-Yokohama Nara BLDG.
(Yokohama City, Kanagawa)Asahi Building(Yokohama City, Kanagawa)
Urban Center
Kanda Tsukasamachi(Chiyoda Ward, Tokyo)(Osaka City, Osaka)－

OthersTotal

424,722- 40 -

(h) Individual Property Income Statements(Unit: thousand yen)
Property no.

OFC-01

OFC-03

OFC-04

OFC-06

OFC-08Property nameMinami-Azabu
Shibuya Building

Honmachibashi
Tower

Nishi-Shinjuku
Matsuya Building

Shibuya
MK Building

Asahi
Building

75,619217,480

100,01179,807226,273

Rental revenue

68,549191,31491,42175,331

210,114

Other lease business revenue

7,069

26,166

8,590

4,475

16,15835,81662,731

43,957

13,03060,9105,622

14,020

7,149

4,812

14,758

400

400

400

350

400

5,229

20,681

7,398

2,914

18,268① Total operating revenue
from real estate leasing② Total operating expenses
from real estate leasing
Management fee
Trust fee
Utilities expenses
Insurance premium

150

465

167

58

487

Repair expenses

3,631

1,328

6,414

463

9,918

Property taxes

4,510

19,702

3,480

4,277

15,757

Others

16,272

6,132

18,947

154

1,319

③ NOI
(①－②)

39,802

154,749

56,054

66,776

165,362④ Depreciation

12,64845,435

10,4903,693

28,772⑤ Operating income (loss)
from real estate leasing(③－④)

27,154

109,31445,56363,083

136,590

-

3,244

1,242

1,706

23,62439,802

151,505

54,81165,070141,738

2,964,980

5,687,374

1,818,187

2,089,124

6,299,284

Property no.

OFC-09OFC-10

OFC-11

OFC-12

OFC-13

Property nameHakata-eki
East Place

Nihonbashi
Hamacho Park
Building

Amusement
Media Gakuin
HonkanHigashi Kobe
Center Building

Amusement
Media Gakuin
Shinkan⑥ Capital expenditures
⑦ NCF
(③－⑥)
Book value at end of the period① Total operating revenue
from real estate leasing

109,992

49,807279,400

Rental revenue

98,94449,807

253,508

Other lease business revenue

11,048-25,892

26,775

12,141

111,799

8,131

813

400

400

7,061

3

Insurance premium

219

175

955

Repair expenses

2,000

-

7,987

Property taxes

7,084

4,299

28,640

Others

1,877

6,450

18,862

③ NOI
(①－②)

83,216

37,66552,625

167,601

20,651④ Depreciation

9,513

2,837

4,221

35,027

1,672⑤ Operating income (loss)
from real estate leasing(③－④)

73,70334,82848,403

132,574

18,978⑥ Capital expenditures

19,813--93,442

347

⑦ NCF
(③－⑥)

63,40337,66552,625

74,15820,303

2,345,389

1,447,445

2,583,995

7,659,246

1,037,206② Total operating expenses
from real estate leasing
Management fee
Trust fee
Utilities expenses

Book value at end of the period

25,450Not disclosed(Note)

400
29,503(Note) Not disclosed because consent for disclosure has not been obtained from the tenants.

- 41 -

Not disclosed(Note)

(Unit: thousand yen)
Property no.
Property name① Total operating revenue
from real estate leasing

OFC-14
Seishin BLDG.

OFC-15

OFC-16

OFC-17

OFC-18NK BLDG.

Urban Center Kanda
Tsukasamachi

Takadanobaba
AccessAzabu Amerex
BLDG.

257,794

129,510

68,261

112,884

71,229Rental revenue

241,421

122,674

64,202

102,460

68,117

Other lease business revenue

16,372

6,836

4,058

10,424

3,111

68,506

31,467

48,64032,08020,685

19,933

11,803

8,883

13,308

7,185

350

350

400

400

375

11,321

4,773

4,944

7,661

2,877

② Total operating expenses
from real estate leasing
Management fee
Trust fee
Utilities expenses

288

211

204

223

105

Repair expenses

14,560149

20,431898

1,976

Property taxes

20,726

10,652

7,463

9,011

7,598

Others

1,326

3,527

6,313

576

567

③ NOI
(①－②)

189,287

98,043

19,62080,80450,543④ Depreciation

14,043

8,819

10,521

8,980

3,446

⑤ Operating income (loss)
from real estate leasing(③－④)

175,244

89,224

9,098

71,82347,096⑥ Capital expenditures

24,007-

74,154-

14,940

⑦ NCF
(③－⑥)

165,280

98,043(54,534)

80,80435,602

11,253,497

5,351,761

4,720,241

3,969,364

2,789,026

Property no.

OFC-19OFC-20

OFC-21

OFC-22

OFC-23

Property nameHiei-Kudan
BLDG.

Shin-Yokohama Nara
BLDG.

The Portal
Akihabara

OHA Building

Urban Center
HakataInsurance premiumBook value at end of the period① Total operating revenue
from real estate leasing
Rental revenue
Other lease business revenue② Total operating expenses
from real estate leasing

66,43480,96432,98654,372

69,58766,434

71,944

31,83648,931

69,587

-

9,019

1,150

5,441

-

20,75628,517

6,223

10,511

5,370

3,539

8,866

2,835

4,726

4,731

Trust fee

500

350

400

361

361

Utilities expenses

29

6,043

1,048

4,289

-

Insurance premium

189

193

40

128

109

Repair expenses

270

3,705

200

694

-

Property taxes

6,630

7,697

1,546

31

29

Others

9,597

1,660

153

279

138

③ NOI
(①－②)

45,67852,447

26,762

43,86164,217④ Depreciation

3,909

9,869

3,472

4,609

15,272⑤ Operating income (loss)
from real estate leasing(③－④)

41,76942,57823,28939,251

48,945-60,223-860-

45,678(7,776)

26,76243,00164,2172,394,739

2,381,264

1,499,581

1,814,395

2,884,118

Management fee⑥ Capital expenditures
⑦ NCF
(③－⑥)
Book value at end of the period- 42 -

(Unit: thousand yen)
Property no.
Property name① Total operating revenue
from real estate leasing

RTL-01

RTL-02

RTL-03

RTL-05

RSC-01

La Park Kishiwada

Suroy Mall
Chikushino

Seiyu
Minakuchi

BAGUS IkebukuroWest

Urban Park
Azabujuban

496,379

354,964

55,790Rental revenue

415,561

275,178

52,770

Other lease business revenue

80,817

79,785

3,019

282,680

87,735

11,660118,874

23,2291,850

350

Utilities expenses

103,932

5,421

Insurance premium

1,184

622

74

Repair expenses

934

10,030784

Property taxes

44,045

19,3792,873

Others11,85928,702

4,693

③ NOI
(①－②)

213,699

267,229

128,018

58,23844,129④ Depreciation

25,431

23,59526,098

2,284

5,167

⑤ Operating income (loss)
from real estate leasing(③－④)

188,267

243,633

101,920

55,95338,962⑥ Capital expenditures

15,839

-

8,434

1,674

297

⑦ NCF
(③－⑥)

197,859

267,229

119,583

56,563

43,832

5,394,670

6,474,017

3,273,918

3,006,464

2,072,910

Property no.

RSC-02

RSC-05

RSC-06

RSC-7

RSC-8

Property nameUrban Park
Daikanyama

Urban Park
Namba

Urban Park
GokokujiUrban Park
Kashiwa

Urban Park
Ryokuchi Koen

② Total operating expenses
from real estate leasing
Management fee
Trust feeBook value at end of the period① Total operating revenue
from real estate leasing

Not disclosed(Note)

2,257

Not disclosed(Note)

350
628

186,998

41,89938,35837,56655,633

Rental revenue

176,937

39,47136,88736,66750,801Other lease business revenue

10,060

2,427

1,470

899

4,832

36,097

13,346

19,547

8,047

15,980

8,900

2,419

4,015

1,880

1,758

350

450

400

350

450

3,666

333

2,202

520

3,396

② Total operating expenses
from real estate leasing
Management fee
Trust fee
Utilities expenses
Insurance premium

251

85

67

111

165

Repair expenses

5,415

3,100

7,877

1,499

4,328

Property taxes

11,453

2,833

1,897

2,949

3,588

Others

6,060

4,123

3,086

735

2,292

③ NOI
(①－②)

150,900

28,553

18,81029,51939,653④ Depreciation

13,514

7,544

5,709

7,553

8,204

⑤ Operating income (loss)
from real estate leasing(③－④)

137,385

21,008

13,10021,96531,448⑥ Capital expenditures

2,011

-

221

1,544

2,733

148,888

28,553

18,58927,97436,9196,359,097

1,484,142

1,495,700

1,230,838

1,590,072

⑦ NCF
(③－⑥)
Book value at end of the period(Note) Not disclosed because consent for disclosure has not been obtained from the tenants.

- 43 -

(Unit: thousand yen)
Property no.

RSC-09

RSC-10

RSC-11

RSC-12

RSC-13

Property nameUrban Park
Koenji

Urban Park
Ichigao

Urban Park
Gyotoku

Shiroi
LogimanUrban Park
Sekime① Total operating revenue
from real estate leasing

33,55957,627

44,130140,695

81,404

Rental revenue

31,12956,10641,921

133,783

78,371Other lease business revenue

2,430

1,521

2,209

6,911

3,033

10,504

12,272

9,284

61,225

36,118

2,286

3,094

2,154

5,964

10,151

400

400

400

750

375

1,402

1,425

1,602

44

2,286

② Total operating expenses
from real estate leasing
Management fee
Trust fee
Utilities expenses

50

147

97

829

286

Repair expenses

3,177

2,519

2,337

10,994

13,762

Property taxes

1,009

3,941

2,146

13,926

5,288

Others

2,177

742

545

28,716

3,969

③ NOI
(①－②)

23,05545,35534,846

79,47045,285④ Depreciation

2,796

5,458

4,315

19,168

11,905⑤ Operating income (loss)
from real estate leasing(③－④)

20,25839,89730,53060,301

33,380

-

399

4,775

1,840

29,38523,05544,95630,07077,62915,9001,187,182

1,915,481

1,510,209

2,415,591

2,193,913

Property no.

RSC-14

RSC-15

RSC-16

RSC-17

RSC-18Property nameUrban Park
ImazatoUrban Park
Yoyogi

Urban Park
Tokiwadai Koen

Urban Park
Mitsuike Koen

Urban Park
Ryogoku

Insurance premium⑥ Capital expenditures
⑦ NCF
(③－⑥)
Book value at end of the period① Total operating revenue
from real estate leasing

39,76937,585

141,887

127,356

33,01939,652

34,107

136,498

121,431

28,961

117

3,477

5,388

5,924

4,058

10,376

11,111

34,50327,137

5,726

4,324

2,326

11,645

10,6702,198

Insurance premium

375
293
145

400
251
50

400
1,805
421

400
1,161
339

361
387
66

Repair expenses

1,220

1,534

5,511

8,705

1,599

Property taxes

3,202

1,660

10,829-2

Rental revenue
Other lease business revenue② Total operating expenses
from real estate leasing
Management fee
Trust fee
Utilities expenses

814

4,887

3,888

5,860

1,109

③ NOI
(①－②)

29,393

26,473

107,384

100,218

27,293④ Depreciation

5,196

4,393

12,624

11,7702,401⑤ Operating income (loss)
from real estate leasing(③－④)

24,19722,08094,75988,44824,892Others

112

-

-

5,540

1,954

⑦ NCF
(③－⑥)

29,281

26,473

107,384

94,67825,339Book value at end of the period

977,690

1,726,819

3,622,941

3,286,174

1,150,151⑥ Capital expenditures- 44 -

(Unit: thousand yen)
Property no.

RSC-19

RSC-20

RSC-21

LGC-01

LGC-02

Property nameUrban Park
Mizonokuchi

Urban Park
Miyamaedaira

Urban Park
TsurumiIwatsuki
Logistics

Yokohama
Logistics① Total operating revenue
from real estate leasing

57,05522,225

198,764

Rental revenue

55,10921,344

187,727

Other lease business revenue

1,945

881

11,037

9,601

9,155

31,431② Total operating expenses
from real estate leasing
Management fee

4,143

1,185

Trust fee

361

361

Utilities expenses

695

153

11,037

Insurance premium

137

47

353

Repair expenses

2,580

16

329

Property taxes

5,920

Not disclosed(Note)

350

Not disclosed(Note)

4

1

13,441Others

1,679

7,390

-

③ NOI
(①－②)

47,45313,06928,823

167,332

96,831④ Depreciation

5,646

4,522

2,716

46,78819,983⑤ Operating income (loss)
from real estate leasing(③－④)

41,806

8,547

26,107

120,544

76,848⑥ Capital expenditures

1,785

290

346

-

-

⑦ NCF
(③－⑥)

45,667

12,77928,476167,332

96,831

2,085,971

1,105,101

1,153,555

6,467,600

3,696,301

Book value at end of the period

Property no.

LGC-03

LGC-04

LGC-05

LGC-07

LGC-08Property name

Funabashi
Logistics

Baraki
Logistics

Tokorozawa
Logistics

Funabashi Nishiura
Logistics II

Matsubushi
Logistics

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)

Not disclosed(Note)① Total operating revenue
from real estate leasing

261,389

Rental revenue

243,219

Other lease business revenue

18,170② Total operating expenses
from real estate leasing
Management fee
Trust fee

55,677
13,363400

Utilities expenses

14,939Insurance premium

510

Repair expenses

4,452

Property taxes

21,392Others

619

③ NOI
(①－②)

205,711

98,44637,291

28,15175,925④ Depreciation

27,474

15,774

5,889

4,559

16,272⑤ Operating income (loss)
from real estate leasing(③－④)

178,237

82,672

31,402

23,591

59,652⑥ Capital expenditures

10,061

-

1,826

-

4,995

⑦ NCF
(③－⑥)

195,649

98,44635,46528,15170,9307,725,495

4,597,416

1,354,832

856,3432,684,786

Book value at end of the period(Note) Not disclosed because consent for disclosure has not been obtained from the tenants.

- 45 -

(Unit: thousand yen)
Property no.

LGC-09

LGC-10

HTL-01

HTL-02

HTL-03

Property name

Funabashi Hi-Tech
Park Factory I

Funabashi Hi-Tech
Park Factory II

R&B Hotel Umeda
East

Smile Hotel
Namba

REMBRANDT STYLETokyo Nishikasai① Total operating revenue
from real estate leasing
Rental revenue

62,141

22,37484,60062,141

22,37484,600---12,525

3,531

12,109

742

660

1,200

350

550

400
-

Other lease business revenue② Total operating expenses
from real estate leasing
Management fee
Trust fee

Not disclosed(Note)

Not disclosed(Note)

6-

Insurance premium

155

71

161

Repair expenses

5,211

-

2,406

Property taxes

5,404

2,227

7,855

654

21

85

Utilities expenses

Others
③ NOI(①－②)

55,45824,56049,616

18,842

72,490④ Depreciation

5,737

2,594

10,523

12,20912,895⑤ Operating income (loss)
from real estate leasing(③－④)

49,721

21,96639,092

6,633

59,594--

11,042--55,45824,56038,573

18,842

72,4901,692,788

694,216

2,108,102

1,638,728

3,841,456

HTL-06

HTL-07

HTL-08⑥ Capital expenditures
⑦ NCF
(③－⑥)
Book value at end of the period

Property no.
Property name① Total operating revenue
from real estate leasing
Rental revenue
Other lease business revenue② Total operating expenses
from real estate leasing
Management fee
Trust fee

HTL-04

HTL-05REMBRANDT STYLE
Hotel WBF Fukuoka
KOKO HOTEL Osaka
GLANSIT AKIHABARA Tokyo Nishikasai
Tenjin Minami
Namba
GrandeBEST WESTERN
Yokohama

80,40070,002-80,40070,002

-

-

-

-

6,476

6,875

6,109

990

1,230

400

350

-

-

1,200
400

Not disclosed(Note)

Not disclosed(Note)

Utilities expenses-

Insurance premium

137

91

65

Repair expenses

196

188

1,111

Property taxes

4,520

5,182

3,169

21

23

184

Others
③ NOI(①－②)

73,92348,07749,012

63,126(6,109)④ Depreciation

13,069

8,647

4,643

10,857

9,050⑤ Operating income (loss)
from real estate leasing(③－④)

60,85439,43044,36852,269(15,160)

-

-

-

-

-

73,92348,07749,012

63,126(6,109)3,221,334

1,930,978

2,490,020

3,132,380

1,962,086⑥ Capital expenditures
⑦ NCF
(③－⑥)
Book value at end of the period(Note) Not disclosed because consent for disclosure has not been obtained from the tenants.

- 46 -

(Unit: thousand yen)

① Total operating revenue
from real estate leasing
Rental revenue
Other lease business revenue② Total operating expenses
from real estate leasing
Management fee

OfficeTotal

RetailTotal

Residence
Total

Logistics facility
Total

Hotel
Total

2,169,355

1,070,994

1,264,750

959,866

426,032

2,009,848

910,391

1,204,142

916,647

426,032

159,506

160,60360,60843,219-653,581403,809

345,060

170,155

57,053

168,767

144,499

83,44433,575

7,749

7,797

3,061

7,695

3,850

3,200

Utilities expenses

137,765

109,353

22,61840,665

6

Insurance premium

1,907

797

Trust fee

4,480

2,372

3,451

Repair expenses

75,431

11,81377,452

8,186

9,114

Property taxes

165,13975,01967,613

78,21535,152Others94,19957,68882,785

3,755

1,032

③ NOI
(①－②)

1,515,774

667,185919,690789,710

368,979④ Depreciation

237,257

77,410140,608

145,073

81,895⑤ Operating income (loss)
from real estate leasing(③－④)

1,278,516

589,775

779,081644,637

287,084⑥ Capital expenditures

317,607

25,94853,24016,883

11,042

⑦ NCF
(③－⑥)

1,198,166

641,236

866,449

772,827

357,936

Book value at end of the period

72,990,225

18,149,070

38,563,547

29,769,782

20,325,088

Portfolio
Total① Total operating revenue
from real estate leasing
Rental revenue
Other lease business revenue② Total operating expenses
from real estate leasing

5,890,999
5,467,061
423,937
1,629,660

Management fee

438,037

Trust fee

25,603

Utilities expenses

310,409

Insurance premium

13,010

Repair expenses

181,998

Property taxes

421,139

Others239,461

③ NOI
(①－②)

4,261,339④ Depreciation

682,245⑤ Operating income (loss)
from real estate leasing(③－④)

3,579,094⑥ Capital expenditures

424,722

⑦ NCF
(③－⑥)
Book value at end of the period

3,836,617
179,797,713- 47 -