(REIT) Financial Report for Fiscal Period Ended January 31, 2023
March 16, 2023
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 17, 2023
April 28, 2023

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, 2023 (from August 1, 2022 to January 31, 2023)(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. 2023
6,486
6.5
3,349
9.9
2,782
8.7
2,781
8.7
Ended Jul. 2022
6,088
2.2
3,047
(1.3)
2,560
1.7
2,559
1.7
Net income
per unit

Fiscal period

Ratio of net income
to equity
yen
1,455
1,430

Ended Jan. 2023
Ended Jul. 2022

%
2.8
2.7

Ratio of ordinary income
to total assets
%
1.4
1.3

Ratio of ordinary income
to operating revenue
%
42.9
42.1

(2) Status of Cash Distribution
Cash distribution
Total
Cash distribution
Total
Ratio ofper unit
cash distribution
in excess of
cash distribution Cash distribution
Fiscal period
cash distribution(not including(not including
earnings
in excess of
payout ratio
cash distribution
cash distribution
to net assets
per unit
earnings
in excess of earnings)
in excess of earnings)
yenmillion yen

yenmillion yen%%

Ended Jan. 2023

1,491

2,865

-

-

103.0

2.8

Ended Jul. 2022

1,476

2,641

-

-

103.2

2.8

(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 January 31, 2023, cash distribution payout ratio is calculated by the following formula due tochanges 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
208,766
193,488

Net assets
million yen
103,455
95,803

Net cashprovided by (used in)operating activities
million yen
3,377
3,566

Net cashprovided by (used in)investing activities
million yen(15,214)(306)

Ended Jan. 2023
Ended Jul. 2022

Equity ratio
%
49.6
49.5

Net assets per unit
yen
53,83553,539(4) Status of Cash Flows
Fiscal period

Ended Jan. 2023
Ended Jul. 2022

-1-

Net cashCash and cash equivalents
provided by (used in)at end of period
financing activities
million yen
million yen
11,534
12,038(2,645)
12,3402. Management Status Forecast for Fiscal Period Ending July 31, 2023 (from February 1, 2023 to July 31, 2023) and Fiscal PeriodEnding January 31, 2024 (from August 1, 2023 to January 31, 2024)(% figures are the rate of period-on-period increase (decrease))
Fiscal period

Operating revenue

million yen
Ending Jul. 2023
Ending Jan. 2024

7,012
6,886

Operating income% million yen
8.1
(1.8)

3,527
3,448

Ordinary income% million yen
5.3
(2.2)

Net income% million yen

2,983
2,909

7.2
(2.5)

2,983
2,908

Cash distribution
per unit
Cash distribution(not including
in excess of earnings
cash distribution
per unit
in excess of earnings)
%
yen
yen
7.2
(2.5)

1,552
1,513

0
0

(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, 2023:
Expected total number of investment units issued and outstanding at end of period 1,921,689 units
Forecast net income per unit 1,552 yen
Fiscal period ending January 31, 2024:
Expected total number of investment units issued and outstanding at end of period 1,921,689 units
Forecast net income per unit 1,513 yen(Note)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 1,921,689
units).

* Others(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement① Changes in accounting policies accompanying amendments to accounting standards, etc. : No
② 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, 2023
1,921,689 units
Fiscal period ended Jul. 31, 2022
1,789,389 units② Number of own investment units at end of period
Fiscal period ended Jan. 31, 2023
0 units
Fiscal period ended Jul. 31, 2022
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 22.
* 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, 2023, and Fiscal
Period Ending January 31, 2024” 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, 2023, and Fiscal Period Ending January 31, 2024
Item

Assumptions

Fiscal period➢ Fiscal period ending July 31, 2023 (15th fiscal period): February 1, 2023 – July 31, 2023 (181 days)➢ Fiscal period ending January 31, 2024 (16th fiscal period): August 1, 2023 – January 31, 2024 (184 days)➢ It is assumed that, with regard to the assets held by SAR as of the date of this report (62 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)”)), the following trust beneficiary interest (“Asset to be Acquired (Mezzanine)”) andpreferred equity securities (“Asset to be Acquired (Preferred Equity)”) will be acquired (the“Acquisition”) and real estate trust beneficiary interest will be transferred (the “Transfer”).
<The Acquisition>
Name: Star Asia Mezzanine Loan Debt Investment Series 8 Class A Beneficial Interest
Planned acquisition date:August 31, 2023, or other date separately agreed upon by SAR and the planned seller

Assets undermanagement

Name: GSA JP Project 1 Tokutei Mokuteki Kaisha (TMK) Preferred Equity Securities
Planned acquisition date:
As of the date of this report, SAR has not yet decided to acquire but has entered into a preferential
negotiation agreement for the acquisition of Asset to be Acquired covering the period until July 31,
2023 on March 16, 2023. Therefore, SAR recognizes the probability of the acquisition to be high.
<The Transfer>
Property name: Urban Park Gokokuji
Planned transfer date:August 31, 2023, or other date separately agreed upon by SAR and the planned buyer➢ It is assumed that other than the Acquisition and the Transfer there will be no change in assets undermanagement (new asset acquisitions, sales of Currently Held Assets, etc.) through to the end of the
fiscal period ending January 31, 2024.
➢ However, in reality assets under management may change.

Operating revenues➢ Rent revenues from Currently Held Assets (Real Estate) 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), the details stated in the loan
agreements or trust agreements, etc. that are effective as of the date of this report, and dividend
revenues from the Asset to be Acquired (Mezzanine) are calculated based on outlines which define thecontents of the Asset to be Acquired (Mezzanine) and the details stated in the sale and purchaseagreement or trust agreement. It is also assumed that no interest payments or dividend payments will
be unpaid. It is assumed that dividend income on Asset to be Acquired (Mezzanine) will accrue from
August 31, 2023.
➢ Considering the letter of intent for lending the securities received on March 16, 2023, it is assumed as
for Asset to be acquired (Preferred Equity) that rent at the rate stated in the letter will accrue from the
beginning of the fiscal period ending January 2024.
➢ Gain on sale of Funabashi Hi-Tech Park Factory II, which was transferred in February 2023, of 413 million
yen is expected for the fiscal period ending July 31, 2023. Gain on sale from the Transfer ofapproximately 271 million yen is expected for the fiscal period ending January 31, 2024.

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 489 million yen
for the fiscal period ending July 31, 2023, and 487 million yen for the fiscal period ending January 31,
2024.
➢ 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”), 271 million yen is expected for the fiscal period ending July 31, 2023, and 240 million yen for
the fiscal period ending January 31, 2024. However, the actual expenditures for repair and maintenancefor 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.
-3-

Item

Assumptions➢ Depreciation is calculated using the straight-line method including for ancillary costs and is expected to
be 760 million yen for the fiscal period ending July 31, 2023, and 786 million yen for the fiscal period
ending January 31, 2024.
➢ Operating expenses other than rent business related expenses are expected to be 598 million yen for
the fiscal period ending July 31, 2023, and 601 million yen for the fiscal period ending January 31, 2024.

NOI(Net Operating
Income)➢ Total NOI of the entire portfolio is expected to be 4,449 million yen for the fiscal period ending July 31,
2023, and 4,500 million yen for the fiscal period ending January 31, 2024.
➢ NOI is calculated by using the following calculation method.
NOI = rent revenue – rent expenses (excluding depreciation)

Non-operating
expenses➢ Expenses on issuance of new investment units are expected to be 13 million yen for the fiscal period
ending July 31, 2023, and 12 million yen for the fiscal period ending January 31, 2024.
➢ The sum of interest expenses and other financing-related expenses is expected to be 525 million yen for
the fiscal period ending July 31, 2023, and 522 million yen for the fiscal period ending January 31, 2024.
➢ The sum of interest expenses on investment corporation bonds and other expenses on investment
corporation bond issuance is expected to be 4 million yen for the fiscal period ending July 31, 2023, and4 million yen for the fiscal period ending January 31, 2024.

Debt financing andinvestment
corporation bonds➢ The total amount of interest-bearing liabilities is assumed to be 96,840 million yen as of the end of the
fiscal period ending July 31, 2023, and 96,840 million yen as of the end of the fiscal period ending
January 31, 2024.
➢ As of the date of this report, SAR has outstanding debt of 95,840 million yen and outstanding
investment corporation bonds of 1,000 million yen.
➢ It is assumed that those with repayment dates falling in the fiscal period ending July 31, 2023, and thefiscal period ending January 31, 2024, will be fully refinanced and that there will be no change to theexisting outstanding debt and outstanding investment corporation bonds through to the end of the
fiscal period ending January 31, 2024.

Investment units➢ It is assumed that the total number of investment units issued and outstanding will be 1,921,689 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, 2024.

➢ 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, 2023, it is assumed that a total of 2,982
per unit
million yen (1,552 yen per unit) will be distributed, which is the sum of the amount remaining after(not includinginternally reserving 89 million yen from the estimated net income of 2,983 million yen and the expectedcash distribution
amount of reversal of reserve for temporary difference adjustment of 88 million yen. As to cash
in excess of earnings)
distribution for the fiscal period ending January 31, 2024, it is assumed that a total of 2,907 million yen(1,513 yen per unit) will be distributed, which is the sum of the amount remaining after internallyreserving 90 million yen from the estimated net income of 2,908 million yen and the expected amountof reversal of reserve for temporary difference adjustment 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 The Investment Trusts
Association, Japan, 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)
13th fiscal period(As of July 31, 2022)

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 prepaid expenses
Leasehold and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets
Total assets-5-

14th fiscal period(As of January 31, 2023)

4,265,178
8,075,474
137,598
196,009
9,011
12,683,272

3,488,637
8,549,954
147,713211,249
181,189
7,000
12,585,743

114
(100)
14
53,471,574(5,441,732)
48,029,841
21,640(5,856)
15,784
119,343(28,905)
90,437
100,966(30,688)
70,278127,283,507
175,489,864

114
(114)
0
56,299,699(6,169,727)
50,129,971
25,348(6,646)
18,702
163,565(35,247)
128,318
125,782(39,013)86,768140,397,333
1,282
190,762,377

4,082,300
4,082,300

4,082,300
4,082,300

800,000
337,433
10,35945,353
1,193,146
180,765,311

400,000
330,923
10,359533,969
1,275,251
196,119,929

12,58327,37539,959193,488,543

11,56349,37060,933208,766,606

(Unit: thousand yen)
13th fiscal period(As of July 31, 2022)
Liabilities
Current liabilities
Operating accounts payable
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 received
Leasehold and guarantee deposits received 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-

14th fiscal period(As of January 31, 2023)

662,398
16,390,000
495,977
59,099605
234,089974,728
36,80418,853,703

906,069
15,630,000
539,516
77,453605
47,405
1,019,524
34,89918,255,474

1,000,000
72,250,000
5,187
5,559,508
16,75978,831,455
97,685,158

1,000,000
80,210,000
5,880
5,840,152
87,056,032
105,311,507

59,115,701

66,123,367

25,132,218

25,132,218*2 8,713,411*2 8,624,499

8,713,411
2,813,756
36,659,386
95,775,087

8,624,499
3,043,461
36,800,179
102,923,546

28,29728,297*1 95,803,384
193,488,543

531,551
531,551*1 103,455,098
208,766,606

(2) Statement of Income and Retained Earnings(Unit: thousand yen)
13th fiscal period
From: February 1, 2022
To: July 31, 2022
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
Gain on donation of non-current assets
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 costs
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-

14th fiscal period
From: August 1, 2022
To: January 31, 2023

*1 5,611,196*1 5,995,567*1 449,218*1 467,828

28,525
6,088,939

22,857
6,486,253*1 2,494,593*1 2,556,151

392,584
38,4282,400
113,213
3,041,220
3,047,719

424,410
40,5282,400
113,204
3,136,696
3,349,557

55
1,470
262
516
2,305

56
1,476
1
1,534

338,087
3,500
140,1641,020
6,843
489,615
2,560,409
2,560,409
605
605
2,559,804
253,951
2,813,756

372,916
3,500
178,507
1,020
12,611
568,555
2,782,535
2,782,535
605
605
2,781,930
261,530
3,043,461

(3) Statement of Unitholders’ Equity
13th fiscal period (from February 1, 2022 to July 31, 2022)(Unit: thousand yen)
Unitholders’ equity
Surplus
Voluntary reserve

Unitholders’capitalBalance at beginning of theperiodChanges of items during theperiod59,115,701

Unitholders’capital surplus

Reserve fortemporarydifference
adjustment

25,132,218

8,802,324

Unappropriatedretainedearnings
Total voluntary(undisposed
reserveloss)
8,802,324

Dividends from surplus
Reversal of reserve fortemporary difference
adjustment(88,912)(88,912)Net income
Net changes of items otherthan unitholders’ equity
Total changes of items during
the period
Balance at end of the period

36,744,298

95,859,999(2,644,716)(2,644,716)(2,644,716)

88,912--2,559,804

2,559,804

2,559,804(88,912)(88,912)4,000(84,912)(84,912)*1 59,115,701

25,132,218

8,713,411

8,713,411

2,813,756

36,659,386

95,775,087(106,910)(106,910)

Total
net assets

95,753,089

Dividends from surplus(2,644,716)

Reversal of reserve fortemporary difference
adjustment-

Net income

Balance at end of the period

2,809,755-

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’equity2,559,804
135,208

135,208

135,208

135,208

135,208

50,29528,29728,29795,803,384-8-

14th fiscal period (from August 1, 2022 to January 31, 2023)(Unit: thousand yen)
Unitholders’ equity
Surplus
Unitholders’capitalBalance at beginning of theperiodChanges of items during theperiodIssuance of new
investment units

59,115,701

Voluntary reserve
Unitholders’capital surplus

Reserve fortemporarydifference
adjustment

25,132,218

8,713,411

Unappropriatedretainedearnings
Total voluntary(undisposed
reserveloss)
8,713,411(88,912)(88,912)Net income(2,641,138)(2,641,138)

88,912--

2,781,930

2,781,930

2,781,930(88,912)(88,912)229,705

140,792

7,148,459*1 66,123,367

25,132,218

8,624,499

8,624,499

3,043,461

36,800,179

102,923,546

28,29728,297Total
net assets

95,803,384

7,007,666

Dividends from surplus(2,641,138)

Reversal of reserve fortemporary difference
adjustment-

Net income

Balance at end of the period(2,641,138)

-

Total
Deferredvaluation andgains or losses
translation
on hedges
adjustments

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

95,775,087

7,007,666

Valuation and translation
adjustments

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

36,659,386

7,007,666

Reversal of reserve fortemporary difference
adjustment

Balance at end of the period

Total
surplus7,007,666

Dividends from surplus

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

2,813,756

Total
unitholders’equity2,781,930
503,254503,254503,254503,254503,254

7,651,713

531,551

531,551

103,455,098-9-

(4) Statement of Cash Distributions
13th fiscal period
From: February 1, 2022
To: July 31, 2022
I.

Unappropriated retained earnings(Unit: yen)
14th fiscal period
From: August 1, 2022
To: January 31, 2023

2,813,756,107

3,043,461,280

88,912,365
2,641,138,164

88,912,365
2,865,238,299(1,476)
2,641,138,164(1,491)
2,865,238,299(1,476)(1,491)

261,530,308

267,135,346

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
Method of calculation of amount of cash distributions
13th fiscal period (from February 1, 2022 to July 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 2,641,138,164 yen, which is equivalent to thesum of the amount remaining after reserving 7,578,913 yen from net income and the amount of reversal of reserve for temporary
difference adjustment of 88,912,365 yen.
14th fiscal period (from August 1, 2022 to January 31, 2023):
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 2,865,238,299 yen, which is equivalent to thesum of the amount remaining after reserving 5,605,038 yen from net income and the amount of reversal of reserve for temporary
difference adjustment of 88,912,365 yen.

- 10 -

(5) Statement of Cash Flows(Unit: thousand yen)
13th fiscal period
From: February 1, 2022
To: July 31, 2022
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
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 operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Repayments of leasehold and guarantee deposits received
Proceeds from leasehold and guarantee deposits received
Repayments of leasehold and guarantee deposits received intrust
Proceeds from leasehold and guarantee deposits received intrust
Proceeds from collection of leasehold and guarantee deposits
Proceeds from redemption of investment securities
Net cash 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 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 -

14th fiscal period
From: August 1, 2022
To: January 31, 2023

2,560,409
697,599
1,020
6,843
(55)
341,587(49,016)
155,777
188,051
4,084
13,682(96,424)
4,636
59,372
8,685
3,896,255
55(331,966)
2,645
3,566,990

2,782,535
743,661
1,020
12,611(56)
376,416(10,114)(181,189)(186,683)(15,239)6,510
133,000
32,85044,796(4,161)
3,735,958
56(358,062)
42
3,377,994(511,417)
(103)
216

(15,895,451)
693(170,274)(222,276)

253,030

502,92020
122,220(306,308)

400,000(15,214,114)

500,000(500,000)
9,750,000(9,750,000)(2,645,197)(2,645,197)
615,484
11,725,168*1 12,340,653

12,800,000(5,600,000)
6,973,060(2,639,001)
11,534,058(302,061)
12,340,653*1 12,038,591

(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.)
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 costs
deferred assets
Investment unit issuance costs 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 fiscal
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 19,049 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.
6. Scope of funds
The funds (cash and cash equivalents) in the statement of cash flows comprise cash on hand andin the statement ofcash in trust, demand deposits and deposits in trust, and short-term investments with a maturity of
cash flows (cash andthree months or less from the date of acquisition that are readily convertible to cash and that arecash equivalents)
subject to an insignificant risk of changes in value.
- 12 -

7.

Other significant
matters serving as thebasis for preparationof financial statements(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 and retained earnings.
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 received in trust(2) Accounting for consumption tax, etc.
Non-deductible consumption tax on acquisition of assets is included in the acquisition cost ofeach asset.

(8) 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)
13th fiscal period(As of July 31, 2022)

14th fiscal period(As of January 31, 2023)

50,00050,000*2 Matters concerning provision and reversal of the reserve for temporary difference adjustment
13th fiscal period (as of July 31, 2022)(Unit: thousand yen)
InitialamountGain on negative
goodwill (Note)

8,891,236

Balance at
beginning of
the period

Reserveduring theperiodReversalduring theperiodBalance at
end of theperiodReasons for provision andreversal

8,802,324-

88,912

8,713,411

Appropriate for distribution(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 or more over 50 years or less every fiscal period starting from the 12th fiscal period, which is the period following
the fiscal period in which the provision was made.

14th fiscal period (as of January 31, 2023)(Unit: thousand yen)
InitialamountGain on negative
goodwill (Note)

8,891,236

Balance at
beginning of
the period

Reserveduring theperiodReversalduring theperiodBalance at
end of theperiodReasons for provision andreversal

8,713,411-

88,9128,624,499

Appropriate for distribution(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 or more over 50 years or less every fiscal period starting from the 12th fiscal period, which is the period following
the fiscal period in which the provision was made.

- 13 -

[Notes on the Statement of Income and Retained Earnings]*1 Breakdown of operating income from real estate leasing(Unit: thousand yen)
13th fiscal period
From: February 1, 2022
To: July 31, 2022

14th fiscal period
From: August 1, 2022
To: January 31, 2023

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

4,829,210

5,182,484

Common area maintenance revenue

544,319570,233

Parking revenue

201,621204,917

Facility use revenue

30,608Other rental revenue

5,436

31,5335,611,196

6,399

5,995,567

Other lease business revenue
Utilities reimbursement

314,831

Other revenue

134,386

Total operating revenue from real estate leasing

419,588449,218

48,2406,060,414

467,828
6,463,396

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

449,514441,402

Utilities expenses

343,623

462,373

Taxes and dues

458,313458,246

Repair expenses

255,200

173,257

Trust fee

25,175

26,166

Insurance premium

12,855

13,598Depreciation

697,599743,661

Other expenses

252,311

237,444

Total operating expenses from real estate leasing

2,494,593

2,556,151

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

3,565,820

3,907,244[Notes on the Statement of Unitholders’ Equity]*1 Total number of investment units authorized and total number of investment units issued and outstanding
13th fiscal period
From: February 1, 2022
To: July 31, 2022

14th fiscal period
From: August 1, 2022
To: January 31, 2023

Total number of investment units authorized

10,000,000 units

10,000,000 units

Total number of investment units issued and outstanding

1,789,389 units

1,921,689 units[Notes on the Statement of Cash Distributions]13th fiscal period
From: February 1, 2022
To: July 31, 2022

14th fiscal period
From: August 1, 2022
To: January 31, 2023

*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.

*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.

- 14 -

[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)
13th fiscal period
From: February 1, 2022
To: July 31, 2022

14th fiscal period
From: August 1, 2022
To: January 31, 2023

Cash and deposits

4,265,178

3,488,637

Cash and deposits in trust

8,075,474

8,549,954

Cash and cash equivalents

12,340,653

12,038,591[Notes on Lease Transactions]Operating leases (as lessor)
Future minimum lease payments(Unit: thousand yen)
13th fiscal period
As of July 31, 2022

14th fiscal period
As of January 31, 2023

Not later than 1 year

5,379,733

5,287,040

Later than 1 year

7,047,465

7,653,000

12,427,198

12,940,040

Total[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.

- 15 -

2.

Matters concerning fair value, etc. of financial instruments
The carrying amount, fair value and the amount of difference between them are as follows. Because “cash and deposits”
and “cash and deposits in trust” are cash and settled in a short period of time and the fair values approximate the bookvalues accordingly, notes on such are omitted.
13th fiscal period (as of July 31, 2022)(Unit: thousand yen)
Carrying amount

Fair value

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

16,390,000

16,394,349

4,349(2) Investment corporation bonds

1,000,000

994,500(5,500)(3) Long-term borrowings

72,250,000

72,241,065(8,934)

Liabilities total

89,640,000

89,629,914(10,085)

28,29728,297-(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.

14th fiscal period (as of January 31, 2023)(Unit: thousand yen)
Carrying amount(1) Current portion of long-term borrowings

15,630,000

Fair value

Amount of difference

15,630,321

321(2) Investment corporation bonds

1,000,000

986,200(13,800)(3) Long-term borrowings

80,210,000

80,102,528(107,471)

Liabilities total

96,840,000

96,719,050(120,949)

531,551

531,551-(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.
(Note 2) Amount of redemption/repayment of investment corporation bonds and loans to be due after the date of settlement of accounts
13th fiscal period (as of July 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

16,390,000

13,340,000

11,085,000

17,810,000

19,965,000

10,050,000

16,390,000

13,340,000

11,085,000

17,810,000

19,965,000

11,050,000

14th fiscal period (as of January 31, 2023)(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

15,630,000

12,285,000

19,150,000

20,275,000

18,450,000

10,050,000

15,630,000

12,285,000

19,150,000

20,275,000

18,450,000

11,050,000- 16 -

[Notes on Securities]
Other securities
13th fiscal period (as of July 31, 2022)
Category

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

Acquisition cost---

① Government bonds,
municipal bonds, etc.

-

-

-

② Corporate bonds

-

-

-

③ Others

-

-

-

-

-

-

-

-

-

(1) Stocks

-

-

-

(2) Bonds

-

-

-

-

-

-

800,000-

800,000
-

-

-

-

-

800,000

800,000-

800,000

800,000-(2) Bonds
Carrying amountgreater thanacquisition cost(3) Others
Subtotal

Carrying amount lessthan or equal toacquisition cost

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

14th fiscal period (as of January 31, 2023)
Category

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

Acquisition cost---

① Government bonds,
municipal bonds, etc.

-

-

-

② Corporate bonds

-

-

-

③ Others

-

-

-

-

-

-

(2) Bonds
Carrying amountgreater thanacquisition cost(3) Others
Subtotal

Carrying amount lessthan or equal toacquisition cost

-

-

-

(1) Stocks

-

-

-

(2) Bonds

-

-

-

-

-

-

400,000-

400,000
-

-

-

-

-

400,000

400,000-

400,000

400,000-① Government bonds,
municipal bonds, etc.
② Corporate bonds③ Others(3) Others
Subtotal
Total- 17 --

[Notes on Derivative Transactions]1.

Derivative transactions to which hedge accounting is not applied
13th fiscal period (as of July 31, 2022)
Not applicable.
14th fiscal period (as of January 31, 2023)
Not applicable.

2.

Derivative transactions to which hedge accounting is applied
13th fiscal period (as of July 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,due after 1 year
64,405,000

59,715,000

Fair value(Note 2)
28,297(Note 1) Contract amount, etc. are based on notional principal.
(Note 2) Fair value is calculated based on the price quoted by lending financial institutions, etc.

14th fiscal period (as of January 31, 2023)
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,due after 1 year
77,205,000

67,675,000

Fair value(Note 2)531,551(Note 1) Contract amount, etc. are based on notional principal.
(Note 2) Fair value is calculated based on the price quoted by lending financial institutions, etc.

[Notes on Retirement Benefits]
13th fiscal period (as of July 31, 2022)
Not applicable.
14th fiscal period (as of January 31, 2023)
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)
13th fiscal period
As of July 31, 2022

14th fiscal period
As of January 31, 2023

Deferred tax assets
Valuation adjustment upon merger
Acquisition cost of securities

1,148,955
2,923

1,123,529
1,284

Deferred gains or losses on hedges
Others

5,365
204

760
-

Deferred tax assets, subtotal

1,157,448

1,125,574

Valuation allowance(1,157,448)(1,125,574)

-

-

-

-

Deferred tax assets, total
Deferred tax assets, net- 18 -

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: %)13th fiscal period
As of July 31, 2022

14th fiscal period
As of January 31, 2023

Statutory tax rate
[Adjustments]

31.46

31.46

Deductible distributions payable
Reversal of excess depreciation(30.61)(0.77)(30.66)(0.70)

Others(0.05)(0.08)

0.02

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.]
13th fiscal period (as of July 31, 2022)
Not applicable.
14th fiscal period (as of January 31, 2023)
Not applicable.
[Notes on Related-Party Transactions]
1. Parent company, major corporate unitholders, etc.
13th fiscal period (from February 1, 2022 to July 31, 2022)
Not applicable.
14th fiscal period (from August 1, 2022 to January 31, 2023)
Not applicable.
2.

Affiliated companies, etc.
13th fiscal period (from February 1, 2022 to July 31, 2022)
Not applicable.
14th fiscal period (from August 1, 2022 to January 31, 2023)
Not applicable.

3.

Fellow subsidiaries, etc.
13th fiscal period (from February 1, 2022 to July 31, 2022)
Not applicable.
14th fiscal period (from August 1, 2022 to January 31, 2023)
Not applicable.

4.

Directors, major individual unitholders, etc.
13th fiscal period (from February 1, 2022 to July 31, 2022)

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- 19 -

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

0.03%

Description oftransaction

Transaction
amount(thousandyen)

Account
item

Balance at
end ofperiod(thousandyen)

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

392,584(Note 2)

Accounts
payable –others431,842(Note 2)

14th fiscal period (from August 1, 2022 to January 31, 2023)

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－－

Executive
Director of
SAR, andPresident andCEO of theAsset Manager

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

Description oftransaction

Transaction
amount(thousandyen)

Account
item

Balance at
end ofperiod(thousand
yen)

0.03%

Payment of asset
management fee
to the AssetManager(Note 1)575,950(Note 2)
(Note 3)

Accounts
payable –others466,852(Note 2)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 14th fiscal period includes the acquisition incentive portion included in the book value of individual
real estate, etc. in the amount of 151,540 thousand yen.

[Notes on Asset Retirement Obligations]13th fiscal period (as of July 31, 2022)
Not applicable.
14th fiscal period (as of January 31, 2023)
Not applicable.
[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)
13th fiscal period
From: February 1, 2022
To: July 31, 2022

14th fiscal period
From: August 1, 2022
To: January 31, 2023

179,797,713

179,572,164(225,548)

15,271,229

179,572,164

194,843,394

195,794,000

214,581,000

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 13th fiscal period, the amount of increase is mainly
attributable to capital expenditures (471,534 thousand yen), while the amount of decrease is mainly attributable to depreciation (697,599
thousand yen). Of the amount of increase (decrease) during the 14th fiscal period, the amount of increase is mainly attributable toacquisition of real estate beneficiary interest in trust of three properties (15,409,595 thousand yen) and capital expenditures (605,932
thousand yen), while the amount of decrease is mainly attributable to depreciation (743,661 thousand yen).
(Note 3) Fair value at the end of the period is the appraisal value by an outside real estate appraiser. Of the fair value at the end of the 14th fiscal
period, that of Funabashi Hi-Tech Park Factory II is based on the transfer price (1,150,000 thousand yen) stated in the trust beneficiaryinterest sale and purchase agreement dated February 1, 2023 and that of Urban Park Gokokuji is based on the transfer price (1,800,000
thousand yen) stated in the trust beneficiary interest sale and purchase agreement dated March 16, 2023.

Income (loss) concerning investments in rental properties is as stated in “Notes on the Statement of Income and Retained
Earnings” earlier in this document.

- 20 -

[Notes on Revenue Recognition]
1. Breakdown information on revenue from contracts with customers
13th fiscal period (from February 1, 2022 to July 31, 2022)(Unit: thousand yen)
Revenue from contracts withcustomers (Note)
Proceeds from sale of real estate

Sales to external customers--

314,831314,831

Other-

5,774,107

Total

314,8316,088,939

Utilities income(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.

14th fiscal period (from August 1, 2022 to January 31, 2023)(Unit: thousand yen)
Revenue from contracts withcustomers (Note)
Proceeds from sale of real estate

Sales to external customers--

419,588419,588

Other-

6,066,665

Total

419,5886,486,253

Utilities income(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.

2. Foundational information for understanding revenue from contracts with customers
The information is as indicated in 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 fiscal period or
thereafter from contracts with customers existing at the end of the current fiscal period.
(1) Balance of contract assets and contract liabilities, etc.
(Unit: thousand yen)
13th fiscal period
14th fiscal period
From: February 1, 2022
From: August 1, 2022
To: July 31, 2022
To: January 31, 2023
Claims generated from contracts with customers(balance at beginning of fiscal period)

54,922

73,083Claims generated from contracts with customers(balance at end of fiscal period)

73,08387,858Contract assets (balance at beginning of fiscal period)--

Contract assets (balance at end of fiscal period)--

Contract liabilities (balance at beginning of fiscal period)--

Contract liabilities (balance at end of fiscal period)--(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.

- 21 -

[Notes on Segment Information]
1.

2.

Segment information
Segment information is omitted because SAR operates a single segment, which is the real estate leasing business.
Related information
13th fiscal period (from February 1, 2022 to July 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 and retained earnings.
(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 and retained earnings.
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 and retained earnings.
14th fiscal period (from August 1, 2022 to January 31, 2023)(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 and retained earnings.
(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 and retained earnings.
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 and retained earnings.

[Notes on Per Unit Information]
13th fiscal period
From: February 1, 2022
To: July 31, 2022

14th fiscal period
From: August 1, 2022
To: January 31, 2023

Net assets per unit

53,539 yen

53,835 yen

Net income per unit

1,430 yen

1,455 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)- 22 -

13th fiscal period
From: February 1, 2022
To: July 31, 2022

14th fiscal period
From: August 1, 2022
To: January 31, 2023

2,559,804

2,781,930--

2,559,804

2,781,930

1,789,389

1,910,903

[Notes on Significant Subsequent Events]
Asset transfer
The transfer of Funabashi Hi-Tech Park Factory II has completed and the transfer of Urban Park Gokokuji was decided asfollows:<Funabashi Hi-Tech Park Factory II>
Asset transferred:

Trust beneficiary interest in which the main trust asset is domestic real estate

Contract date:
Transfer date:February 1, 2023
February 20, 2023

Location (indication of residential address):
Buyer:

631-13 Toyotomicho, Funabashi-shi, Chiba
TOCALO Co., Ltd.

Transfer price:
Impact on income (loss):

1,150,000 thousand yen
Operating revenue from gain on sale of real estate is expected to be recordedin the amount of approximately 413 million yen in the fiscal period ending
July 31, 2023.

<Urban Park Gokokuji>
Asset to be transferred:
Contract date:

Trust beneficiary interest in which the main trust asset is domestic real estate
March 16, 2023

Planned transfer date:August 31, 2023, or other date separately agreed upon by SAR and theplanned buyer

Location (indication of residential address):
Planned buyer:

1-5-4 Zoshigaya, Toshima-ku, Tokyo
A.D. Works Co., Ltd.

Planned transfer price:
Impact on income (loss):

1,800,000 thousand yen
Operating revenue from gain on sale of real estate is expected to be recordedin the amount of approximately 271 million yen in the fiscal period ending
January 31, 2024.

- 23 -

(9) 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

February 1, 2018
February 27, 2018
September 5, 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

53,641

467,941

5,525,130

45,556,316(Note 1)

2,683

470,624

276,354

45,832,670(Note 2)

66,857537,4816,584,077

52,416,747(Note 3)October 2, 2018

Capital increase throughthird-party allotment

3,343

540,824

329,218

52,745,966(Note 4)

August 1, 2020

Investment unit split

540,824

1,081,648-

52,745,966(Note 5)

August 1, 2020

Merger592,741

1,674,389-

52,745,966(Note 6)

August 17, 2021

Capital increase throughpublic offering

115,000

1,789,389

6,369,735

59,115,701(Note 7)

August 16, 2022

Capital increase throughpublic offering

132,300

1,921,689

7,007,666

66,123,367(Note 8)(Note 1) 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 2) 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 3) 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 4) 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 5) SAR has conducted an investment unit split to split one investment unit into two investment units.
(Note 6) 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 7) 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.
(Note 8) New investment units were issued through public offering at an issue price of 54,795 yen (paid-in amount of 52,968 yen) per unit for the
purpose of procuring funds for acquisition of new properties.

- 24 -

3.

Reference Information(1) Investment Status

Type ofasset

Geographic area
(Note 1)Primary use

13th fiscal period(As of July 31, 2022)
Total amount
As a percentage
heldof total assets(million yen)(%)
(Note 2)
(Note 3)14th fiscal period(As of January 31, 2023)
Total amount
As a percentage
heldof total assets(million yen)(%)
(Note 2)
(Note 3)

Greater Tokyo

54,48328.2

56,74327.2

Major Metropolitan Areas

18,5699.6

18,5398.9Greater Tokyo

3,004

1.6

3,001

1.4

Major Metropolitan Areas

15,115

7.8

24,711

11.8

Greater Tokyo

32,25516.7

32,22815.4

Major Metropolitan Areas

6,233

3.2

6,232

3.0

Greater Tokyo

29,657

15.3

29,541

14.2

Greater Tokyo

12,652

6.5

12,632

6.1

Major Metropolitan Areas

7,599

3.9

11,212

5.4

179,572

92.8

194,843

93.3

800

0.4

400

0.2

Deposits and other assets

13,116

6.8

13,523

6.5

Total amount of assets

193,488

100.0

208,766

100.0

OfficeRetailRealestatein trust

Residence

Logistics facility

Hotel

Subtotal
Investment securities

Amount(million yen)

As a percentage
of total assets(%)

Amount(million yen)

As a percentage
of total assets(%)

Total amount of liabilities (Note 4)

97,68550.5

105,311

50.4

Total amount of net assets (Note 4)

95,803

49.5

103,455

49.6(Note 1) ”Greater Tokyo” refers to Tokyo, Kanagawa, Saitama and Chiba Prefectures. The same shall apply hereinafter. The
Asset Manager has made an amendment to the investment target classification on March 16, 2023 and figures above
are based on the classification after the amendment.
(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-07

Star Asia Mezzanine Loan
Debt Investment Series 7
Total

Type of asset

Corporatebond－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)

－

－

400

－

400

－

－

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 Quintessa Hotel Tokyo Haneda
Comic & Books (former property name:Relief Premium Haneda).

- 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 name

OFC-14OFC-15
OFC-16

Nihonbashi Hamacho Park
Building
Amusement Media
Gakuin Honkan
Higashi-KobeCenter Building
Amusement Media
Gakuin Shinkan
Seishin BLDG.
Urban Center Kanda Sudacho (Note 6)
Urban Center Kanda
Tsukasamachi

OFC-17

Takadanobaba Access

OFC-18

Azabu Amerex BLDG.

OFC-19Hiei-Kudan BLDG.

OFC-20Urban Center ShinYokohama (Note 7)

OFC-21The Portal Akihabara

OFC-22

Urban Center Tachikawa

OFC-23

Urban Center Hakata

OFC-24

Urban Center Fujisawa

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,
FukuokaFujisawa City,
Kanagawa

RetailSubtotal
RTL-01

La Park Kishiwada

RTL-02

Suroy Mall Chikushino

RTL-03

Seiyu Minakuchi

RTL-05

BAGUS Ikebukuro West

RTL-06abeno nini (Retail)Kishiwada City,
Osaka
Chikushino City,
Fukuoka
Koka City,
Shiga
Toshima Ward,Tokyo
Abeno Ward,
Osaka City, Osaka

Residence

Subtotal
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

Minato Ward,Tokyo
Shibuya Ward,Tokyo
Naniwa Ward,
Osaka City, Osaka
Toshima Ward,Tokyo
Kashiwa City,
Chiba
Suita City,
Osaka
Suginami Ward,Tokyo- 27 -

Acquisition
price(million yen)
(Note 3)

Share ofinvestment(%)(Note 4)

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

2,973

1.5

3,040

January 14, 2016

6,065

3.1

7,090

January 14, 2016

1,763

0.9

2,660

April 20, 2016

2,042

1.0

3,290

April 20, 2016

6,320

3.2

8,390

April 20, 2016

2,286

1.2

3,140

April 6, 2017

1,450

0.7

1,500

February 2, 2018

2,580

1.3

2,790

September 6, 2018

7,440

3.8

7,320

September 6, 2018

1,020

0.5

1,240

February 1, 201911,2005.7

11,700August 1, 2020

5,350

2.7

5,440

August 1, 2020

4,590

2.4

4,630

August 1, 2020

3,990

2.0

3,990

August 1, 2020

2,780

1.4

2,910

August 1, 2020

2,400

1.2

2,390

August 1, 2020

2,300

1.2

2,590

August 1, 2020

1,510

0.8

1,490

August 1, 2020

1,804

0.9

1,980

August 19, 2021

2,870

1.5

3,200

August 19, 2021

2,054

1.1

2,200

August 18, 2022

74,78738.4

82,980

－

5,400

2.8

5,240

August 1, 2020

6,550

3.4

6,290

August 1, 2020

3,320

1.7

3,330

August 1, 2020

2,984

1.5

3,410

August 19, 2021

9,500

4.9

10,100August 18, 2022

27,75414.2

28,370

－

2,045

1.0

2,930

January 14, 2016

6,315

3.2

10,100January 14, 2016

1,490

0.8

1,550

April 20, 2016

1,460

0.7

1,570

February 1, 2017

1,186

0.6

1,200

April 6, 2017

1,550

0.8

1,720

February 2, 2018

1,167

0.6

1,180

February 2, 2018

Residence

Use

Propertyno.
(Note 1)

Property name

RSC-10Urban Park Ichigao

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)
Aoba Ward,
Yokohama City,
Kanagawa
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
LGC-01

Iwatsuki Logistics

LGC-02

Yokohama Logistics

LGC-03

Funabashi Logistics

LGC-04

Baraki Logistics

LGC-05Tokorozawa Logistics

LGC-07

Funabashi Nishiura
Logistics II

LGC-08

Matsubushi Logistics

LGC-09Hotel

LGC-10

Funabashi Hi-Tech Park
Factory I
Funabashi Hi-Tech Park
Factory II
Subtotal

HTL-01R&B Hotel Umeda East

HTL-02

Smile Hotel Namba

HTL-03REMBRANDT STYLE Tokyo
Nishikasai

HTL-04

BEST WESTERN Yokohama

HTL-05The BREAKFAST HOTELFUKUOKA TENJIN

HTL-06

GLANSIT AKIHABARA

HTL-07REMBRANDT STYLE Tokyo
Nishikasai Grande

HTL-08

KOKO HOTEL Osaka Namba

HTL-09abeno nini (Hotel)

Iwatsuki Ward,
Saitama City,
Saitama
Kanagawa Ward,
Yokohama City,
Kanagawa
Funabashi City,
Chiba
Ichikawa City,
Chiba
Tokorozawa City,
Saitama
Funabashi City,
Chiba
Kitakatsushika-gun,
Saitama
Funabashi City,
Chiba
Funabashi City,
Chiba
Kita Ward,
Osaka City, Osaka
Naniwa Ward,
Osaka City, Osaka
Edogawa Ward,Tokyo
Tsurumi Ward,
Yokohama City,
Kanagawa
Chuo Ward,
Fukuoka City,
FukuokaChiyoda Ward,Tokyo
Edogawa Ward,Tokyo
Naniwa Ward,
Osaka City, Osaka
Abeno Ward,
Osaka City, Osaka

Subtotal
Total- 28 -

Acquisition
price(million yen)
(Note 3)

Share ofinvestment(%)(Note 4)

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

1,810

0.9

2,170

March 13, 2020

1,430

0.7

1,600

March 13, 2020

2,470

1.3

2,520

August 1, 2020

2,150

1.1

2,460

August 1, 2020

993

0.5

1,100

August 1, 2020

1,740

0.9

1,990

August 1, 2020

3,506

1.8

3,960

October 16, 2020

3,160

1.6

3,580

January 8, 2021

1,115

0.6

1,280

August 19, 2021

2,019

1.0

2,100

August 19, 2021

1,060

0.5

1,260

August 19, 2021

1,113

0.6

1,190

August 19, 2021

37,77919.4

45,460

－

6,942

3.6

7,690

January 14, 2016

3,560

1.8

4,340

January 14, 2016

7,875

4.0

8,930

January 14, 2016

4,700

2.4

5,030

April 6, 2017

1,300

0.7

1,550

April 6, 2017

821

0.4

891

February 2, 2018

2,755

1.4

3,240

February 2, 2018

1,710

0.9

1,710

August 1, 2020

702

0.4

705

August 1, 2020

30,365

15.6

34,086

－

2,069

1.1

2,280

January 14, 2016

1,750

0.9

1,440

January 14, 2016

3,827

2.0

3,470

April 6, 2017

3,248

1.7

3,210

April 6, 2017

1,970

1.0

1,920

September 6, 2018

2,500

1.3

2,440

September 6, 2018

3,180

1.6

3,140

September 6, 2018

2,000

1.0

1,420

September 6, 2018

3,600

1.8

3,690

August 18, 2022

24,14412.4

23,010－

194,829100.0

213,906－

(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 a percentage of the total of acquisition price, rounded to
the first 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, 2023, 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 August 1, 2022 (former property name: NK Building). The same shall apply hereinafter.
(Note 7) The name was changed on August 1, 2022 (former property name: Shin-Yokohama Nara BLDG.). The same shall apply hereinafter.

(b) Portfolio Summarya.

By Geographic Area
Geographic area

Acquisition price(million yen)Greater Tokyo (Note 2)
Major
Metropolitan
Areas

Share
(%)
(Note 1)

134,226

68.8

Osaka Area, Nagoya Area
and Fukuoka Area

38,293

19.6

Other than the above

22,71011.6

195,229

100.0

Total

(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) A mezzanine loan debt (acquisition price: 400 million yen) is included.
(a) OfficeGeographic area

Acquisition price(million yen)Greater Tokyo
Major
Metropolitan
Areas

Share
(%)

56,12675.0

Osaka Area, Nagoya Area
and Fukuoka Area

11,221

15.0

Other than the above

7,440

9.9

74,787

100.0

Total
(b) Retail
Geographic area

Acquisition price(million yen)Greater Tokyo
Major
Metropolitan
Areas

Share
(%)

2,984

10.8

Osaka Area, Nagoya Area
and Fukuoka Area

9,500

34.2

Other than the above

15,27055.0

27,754

100.0

Total

- 29 -

(c) Residence
Acquisition price(million yen)

Geographic area
Greater Tokyo
Major
Metropolitan
Areas

Osaka Area, Nagoya Area
and Fukuoka Area

31,596

83.6

6,183

16.4

-

-

37,779100.0

Other than the above

Total

Share
(%)

(d) Logistics facility
Acquisition price(million yen)

Geographic area
Greater Tokyo
Major
Metropolitan
Areas

Share
(%)

30,365100.0

Osaka Area, Nagoya Area
and Fukuoka Area--

Other than the above--

30,365

100.0

Total
(e) Hotel

Acquisition price(million yen)

Geographic area
Greater Tokyo (Note)
Major
Metropolitan
Areas

Osaka Area, Nagoya Area
and Fukuoka Areab.

13,155

53.6

11,38946.4--

24,544

100.0

Other than the above

Total

Share
(%)

By Size
Acquisition price

10 billion yen or more

Number ofproperties

Share
(%)
(Note 1)

1

1.6

10

15.6

49

76.6

Less than 1 billion yen (Note 2)

4

6.3

Total

64

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 1) “Share” is calculated on the basis of number of properties.
(Note 2) A mezzanine loan debt (acquisition price: 400 million yen) is included.

- 30 -c.

By Asset Type (Use)
Number ofproperties

Acquisition price(million yen)

Office21

74,787

38.3

Retail527,754

14.2

Residence

19

37,77919.4

Logistics facility

930,365

15.6

Hotel (Note)10

24,544

12.6

Total

64

195,229

100.0

Use

(Note) A mezzanine loan debt (acquisition price: 400 million yen) is included.

- 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

102,768

128,023

3,263.08

3,263.08

100.0

OFC-03

Honmachibashi Tower

February 2010

6(Note 7)250,354

260,488

10,489.58

10,489.58

100.0

OFC-04

Nishi-Shinjuku Matsuya
Building

May 198710

119,608

149,273

3,547.74

3,547.74

100.0

OFC-06

Shibuya MK Building

July 1993

4

70,716

94,3001,612.88

1,612.88

100.0

OFC-08Asahi Building

November 1994

20

235,651

247,959

8,672.01

8,672.01

100.0

OFC-09Hakata-eki East Place

February 1986

18

115,873

107,378

4,540.80

4,632.70

98.0

July 1992

3

39,904

60,116

1,433.88

1,913.44

74.9

November 1994

1

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

100.0

15,130.80

16,960.51

89.2

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

OFC-10
OFC-11

Nihonbashi Hamacho Park
Building
Amusement Media Gakuin
HonkanOFC-12

Higashi Kobe Center Building

January 1992

55

OFC-13

Amusement Media Gakuin
ShinkanJanuary 19991

OFC-14

Seishin BLDG.

March 1989

18

207,083

280,368

4,403.56

5,616.80

78.4

October 1991

10

145,353

157,380

3,394.35

3,394.35

100.0

January 1988

8

119,634

150,123

3,250.68

3,250.68

100.0

OFC-15
OFC-16

Urban Center Kanda Sudacho
Urban Center Kanda
Tsukasamachi

316,441

332,568

OFC-17

Takadanobaba Access

January 1994

7

111,912117,2423,509.86

3,691.49

95.1

OFC-18

Azabu Amerex BLDG.

June 1988

7

73,79363,5652,240.03

2,240.03

100.0

OFC-19Hiei-Kudan BLDG.

September 1991

10

60,731

101,600

2,298.86

2,298.86

100.0

OFC-20Urban Center Shin-Yokohama

March 1992

17

85,24893,9604,057.89

4,057.89

100.0

OFC-21The Portal Akihabara

May 2002

8

33,89338,756

941.69941.69100.0

OFC-22

Urban Center Tachikawa

May 1990

3

45,852

66,6502,211.96

3,400.47

65.0

OFC-23

Urban Center Hakata

August 2020

1

77,043

108,748

2,639.18

2,639.18

100.0

OFC-24

Urban Center Fujisawa

April 1991

6

77,094

90,7703,298.18

3,396.17

97.1

RTL-01

La Park Kishiwada

August 1994

53
(Note 10)533,043

239,341

40,774.23(Note 10)41,001.03(Note 10)

99.4

RTL-02

Suroy Mall Chikushino

June 2007

20

267,243

418,134

29,950.48

31,088.53

96.3

RTL-03

Seiyu Minakuchi

May 1999

1

23,814.87

100.0

RTL-05

BAGUS Ikebukuro West

November 1992

1

1,497.45

100.0

RTL-06abeno nini (Retail)

January 2012

5

201,113150,698

3,481.03

3,481.03

100.0

RSC-01

Urban Park Azabujuban

November 1999

44

56,193

10,903

1,986.76

1,986.76

100.0

RSC-02

Urban Park Daikanyama

Existing:
November 1982
Newly built:
May 2006

70

197,239

78,7685,909.54

5,977.18

98.9

RSC-05

Urban Park Namba

January 2013

113

48,394120

2,496.73

2,584.81

96.6

RSC-06

Urban Park Gokokuji

February 1990

106

50,593

3,790

1,898.52

1,964.04

96.7

RSC-07

Urban Park Kashiwa

August 1997

40

38,582

7,726

2,954.77

2,954.77

100.0

RSC-08

Urban Park Ryokuchi Koen

March 1989

60

60,716

10,6385,508.94

5,508.94

100.0- 32 -

Not disclosed Not disclosed
23,814.87(Note 9)(Note 9)Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)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-09Urban Park Koenji

October 1987

73

36,1344,501

1,333.38

1,365.48

97.6

RSC-10Urban Park Ichigao

July 1998

60

59,082

17,9494,260.26

4,322.62

98.6

RSC-11

Urban Park Gyotoku

March 1995

41

37,005

15,4512,670.08

2,976.36

89.7

RSC-12

Shiroi Logiman

May 1995

288

143,014

12,982

21,210.93

21,884.21

96.9

RSC-13

Urban Park Sekime

August 1989

124

87,1769,461

7,470.08

7,693.13

97.1

RSC-14

Urban Park Imazato

December 1991

65

39,327

1,872

4,442.20

4,648.64

95.6

RSC-15

Urban Park Yoyogi

September 201728

41,285

7,352

1,286.50

1,286.50

100.0

RSC-16

Urban Park Tokiwadai Koen

February 1994

138

144,047

29,215

13,860.00

14,058.00

98.6

RSC-17

Urban Park Mitsuike Koen

March 1992

136

128,477

29,470

10,296.00

10,362.00

99.4

RSC-18

Urban Park Ryogoku

October 1997

31

36,296

7,812

2,235.93

2,304.53

97.0

RSC-19Urban Park Mizonokuchi

August 1988

67

62,7235,240

3,686.31

4,160.00

88.6

RSC-20Urban Park MiyamaedairaJune 2021

49

32,783

2,285

1,957.97

1,957.97

100.0

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

100.0

30,190.81

30,190.81

100.0

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

100.0

38,086.56

94.7

12,126.28

100.0

5,994.75

100.0

6,315.87

100.0

19,833.47

100.0

8,340.98

100.0

4,233.92

100.0

RSC-21

Urban Park Tsurumi

February 1994

1

LGC-01

Iwatsuki Logistics

October 20143

LGC-02

Yokohama Logistics

October 1994

1

LGC-03

Funabashi Logistics

Building 1:
September 1992
Building 2:
August 19976

LGC-04

Baraki Logistics

August 20152

LGC-05Tokorozawa Logistics

April 19991

LGC-07

Funabashi Nishiura Logistics II

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

LGC-08

Matsubushi Logistics

March 1997

1

May 2003

1

September 2001

1

LGC-09
LGC-10

Funabashi Hi-Tech Park
Factory I
Funabashi Hi-Tech Park
Factory II

205,181

269,093

97,014

91,16636,081.45

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)Not disclosed Not disclosed
19,833.47(Note 9)(Note 9)Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)HTL-01R&B Hotel Umeda East

October 2000

1

65,27773,4353,940.93

3,940.93

100.0

HTL-02

Smile Hotel Namba

February 2008

1

27,795-

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-05The BREAKFAST HOTELFUKUOKA TENJIN

February 2017

1

2,281.49

100.0

HTL-06

GLANSIT AKIHABARA

September 2017

1

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 20171

23,638-2,061.38

2,061.38

100.0

HTL-09Abeno nini (Hotel)

January 20121

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)5,553.84

100.0

463,355.32

97.6

Total

1,859

- 33 -

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)6,463,396

5,846,032

452,371.78

(Note 1)“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, 2023. 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 number(Note 2)of tenants is 1 and the sum total of these is stated.
“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).

(Note 3)

“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, 2023 (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 leaseagreements concluded with end-tenants.

(Note 4)

“Leased area” is the sum total of the leased area stated in the lease agreement for each investment asset as ofJanuary 31, 2023. 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(Note 5)for properties under a rent-guaranteed type master lease.
“Leasable area” is the floor area regarded as being available for leasing based on the lease agreement or building(Note 6)drawing, etc. of the building for each investment asset as of January 31, 2023.
“Occupancy rate” is the ratio of leased area to leasable area for each investment asset as of January 31, 2023,
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.

(Note 7)(Note 8)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.
In the table, “Number of tenants,” “Security and guarantee deposits,” “Leased area” and “Occupancy rate” arebased on lease agreements valid as of January 31, 2023, even if there is a notice of cancellation or termination oflease agreements with end-tenants or unpaid rent.

(Note 9) 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.

- 34 -

(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)

Income approach
Direct capitalization
methodDCF
methodIndicatedvalue(million yen)

Cap rate(%)

Indicated Discount
value
rate
(million yen)(%)

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

OFC-01

Minami-Azabu Shibuya Building

Daiwa

3,040

3,120

3.9

3,010

3.5

4.1

139

4.7

OFC-03

Honmachibashi Tower

Daiwa

7,090

7,070

4.1

7,100

3.9

4.3

308

5.1

OFC-04

Nishi-Shinjuku Matsuya Building

Daiwa

2,660

2,590

4.1

2,690

3.9

4.3

121

6.8

OFC-06

Shibuya MK Building

JREI

3,290

3,330

3.3

3,250

3.1

3.4

114

5.6

OFC-08Asahi Building

JREI

8,390

8,470

3.3

8,310

3.1

3.4

311

4.9

OFC-09Hakata-eki East Place

Daiwa

3,140

3,130

4.5

3,150

4.3

4.7

146

6.4

OFC-10Nihonbashi Hamacho Park Building Daiwa

1,500

1,490

4.3

1,500

4.1

4.5

66

4.5

OFC-11

Amusement Media Gakuin
Honkan

Daiwa

2,790

2,850

3.5

2,760

3.3

3.7

103

4.0

OFC-12

Higashi Kobe Center Building

Tanizawa

7,320

7,240

4.9

7,360

5.0

5.1

403

5.4

OFC-13

Amusement Media Gakuin
Shinkan

JREI

1,240

1,250

3.2

1,220

3.0

3.3

41

4.0

OFC-14

Seishin BLDG.

JREI

11,70011,9003.3

11,500

3.0

3.3

401

3.6

OFC-15

Urban Center Kanda Suda-cho

Tanizawa

5,440

5,540

3.4

5,400

3.5

3.6

199

3.7

OFC-16

Urban Center Kanda Tsukasamachi Tanizawa

4,630

4,730

3.5

4,590

3.6

3.7

172

3.8

OFC-17

Takadanobaba Access

Tanizawa

3,990

4,160

3.6

3,910

3.7

3.8

155

3.9

OFC-18

Azabu Amerex BLDG.

JREI

2,910

2,910

3.4

2,900

3.1

3.4

104

3.7

OFC-19Hiei-Kudan BLDG.

Tanizawa

2,390

2,480

3.4

2,350

3.5

3.6

87

3.6

OFC-20Urban Center Shin-Yokohama

JREI

2,590

2,600

4.2

2,580

3.9

4.3

115

5.0

OFC-21The Portal Akihabara

Tanizawa

1,490

1,540

3.6

1,470

3.7

3.8

57

3.8

OFC-22

Urban Center Tachikawa

Daiwa

1,980

1,990

4.4

1,980

4.2

4.6

93

5.2

OFC-23

Urban Center Hakata

JREI

3,200

3,220

3.9

3,180

3.7

4.0

126

4.4

OFC-24

Urban Center Fujisawa

JREI

2,200

2,210

4.8

2,180

4.6

5.0

115

5.6

RTL-01

La Park Kishiwada

RTL-02

Suroy Mall Chikushino

RTL-0382,98083,820-82,390

-

-

3,378

4.5

JREI

5,240

5,240

6.4

5,230

6.2

6.6

385

7.1

Tanizawa

6,290

6,280

5.7

6,300

5.8

5.9

369

5.6

Seiyu Minakuchi

JREI

3,330

3,360

6.7

3,300

6.5

7.0

246

7.4

RTL-05

BAGUS Ikebukuro West

JREI

3,410

3,440

3.5

3,370

3.3

3.6

123

4.1

RTL-06abeno nini (Retail)

JREI

10,10010,300

3.8

9,840

3.6

4.0

393

4.1

28,37028,620-28,040

-

-

1,516

5.5

JREI

2,930

2,960

2.9

2,890

2.7

3.0

89

4.4

Subtotal

RetailSubtotal

Residence

RSC-01

Urban Park Azabujuban

RSC-02

Urban Park Daikanyama

JREI

10,10010,300

2.8

9,980

2.6

2.9

302

4.8

RSC-05

Urban Park Namba

Daiwa

1,550

1,570

4.6

1,540

4.4

4.8

74

5.0

RSC-06

Urban Park Gokokuji

JREI

1,570

1,580

3.5

1,560

3.3

3.6

61

4.2

RSC-07

Urban Park Kashiwa

Tanizawa

1,200

1,210

4.4

1,190

4.5

4.6

58

4.9

RSC-08

Urban Park Ryokuchi Koen

Tanizawa

1,720

1,730

4.5

1,720

4.6

4.7

88

5.7

RSC-09Urban Park Koenji

Tanizawa

1,180

1,210

3.8

1,170

3.9

4.0

52

4.5

RSC-10Urban Park Ichigao

JREI

2,170

2,180

3.7

2,150

3.5

3.8

86

4.8

RSC-11

Urban Park Gyotoku

Tanizawa

1,600

1,640

3.9

1,580

4.0

4.1

67

4.7

RSC-12

Shiroi Logiman

Tanizawa

2,520

2,470

5.0

2,540

5.1

5.2

140

5.7

RSC-13

Urban Park Sekime

Tanizawa

2,460

2,470

4.2

2,450

4.3

4.4

114

5.3

RSC-14

Urban Park Imazato

Tanizawa

1,100

1,110

4.4

1,100

4.5

4.6

54

5.4

RSC-15

Urban Park Yoyogi

JREI

1,990

2,000

3.1

1,970

2.8

3.2

63

3.6

RSC-16

Urban Park Tokiwadai Koen

Tanizawa

3,960

3,990

4.2

3,950

4.3

4.4

187

5.3

RSC-17

Urban Park Mitsuike Koen

Tanizawa

3,580

3,600

4.4

3,570

4.5

4.6

171

5.4

- 35 -

Summary of appraisal reports

Use

Residence

Propertyno.

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

Direct capitalization
methodDCF
methodIndicatedvalue(million yen)

Cap rate(%)

Indicated Discount
value
rate
(million yen)(%)

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

RSC-18

Urban Park Ryogoku

Tanizawa

1,280

1,290

3.8

1,280

3.9

4.0

51

4.6

RSC-19Urban Park Mizonokuchi

Tanizawa

2,100

2,130

4.3

2,080

4.4

4.5

96

4.8

RSC-20Urban Park Miyamaedaira

Daiwa

1,260

1,280

4.0

1,250

3.8

4.2

52

5.0

RSC-21

Urban Park Tsurumi

Tanizawa

1,190

1,200

4.3

1,190

4.7

4.5

55

4.9

45,46045,920-45,160

-

-

1,861

4.9

LGC-01

Iwatsuki Logistics

Daiwa

7,690

7,780

4.2

7,650

4.0

4.4

333

4.8

LGC-02

Yokohama Logistics

Daiwa

4,340

4,360

4.0

4,330

3.8

4.2

204

5.7

LGC-03

Funabashi Logistics

Daiwa

8,930

8,990

4.1

8,900

3.9

4.3

417

5.3

LGC-04

Baraki Logistics

Tanizawa

5,030

5,180

3.5

4,970

3.4

3.7

183

3.9

LGC-05Tokorozawa Logistics

JREI

1,550

1,570

4.6

1,530

4.2

4.9

75

5.8

LGC-07

Funabashi Nishiura Logistics II

Daiwa

891

891

5.4

891

5.2

5.6

57

7.0

LGC-08

Matsubushi Logistics

JREI

3,240

3,260

4.7

3,210

4.2

5.0

158

5.7

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

JREI

705

710

6.2

699

5.4

7.0

48

6.8

34,08634,471-33,860

-

-

1,587

5.2

Subtotal

Logistics
facility

Income approach

Subtotal
HTL-01R&B Hotel Umeda East

Daiwa

2,280

2,290

4.6

2,270

4.4

4.8

113

5.5

HTL-02

Smile Hotel Namba

Daiwa

1,440

1,470

4.7

1,420

4.5

4.9

75

4.3

HTL-03REMBRANDT STYLE Tokyo
Nishikasai

JREI

3,470

3,530

4.3

3,400

4.1

4.5

160

4.2

HTL-04

BEST WESTERN Yokohama

JREI

3,210

3,250

4.4

3,160

4.2

4.6

147

4.5

HTL-05The BREAKFAST HOTEL FUKUOKA
Tanizawa
TENJIN

1,920

1,960

4.4

1,900

4.4

4.6

87

4.4

HTL-06

GLANSIT AKIHABARA

Tanizawa

2,440

2,500

3.9

2,410

3.8

4.1

98

3.9

HTL-07REMBRANDT STYLE Tokyo
Nishikasai Grande

Tanizawa

3,140

3,150

4.0

3,140

3.9

4.2

126

4.0

HTL-08

KOKO HOTEL Osaka Namba

Daiwa

1,420

1,450

4.5

1,410

4.1

4.5

72

3.6

HTL-09abeno nini (Hotel)

JREI

3,690

3,720

4.6

3,650

3.9

4.3

176

4.9

23,01023,320-22,760

-

-

1,053

4.4

213,906

216,151-

212,210

-

-

9,396

4.8

Hotel

Subtotal
Total(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, 2023, 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.

- 36 -

(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, 2023. Of investment assets, the following are top fiveproperties in terms of total rental revenue as of January 31, 2023.
Changes in occupancy rate (%) (Note)
January 31, 2021
July 31, 2021
January 31, 2022
July 31, 2022
January 31, 2023
La Park Kishiwada

99.0

99.0

98.7

99.5

99.4

Suroy Mall Chikushino

97.6

97.6

99.7

96.3

96.3

Higashi Kobe Center
Building

96.2

85.1

85.3

86.6

89.2

Funabashi Logistics

91.6

91.6

91.6

91.6

94.7

Honmachibashi Tower

84.3

94.8

100.0

100.0

100.0

(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)

6.4

2

Seiyu Co., Ltd.

Seiyu Minakuchi

23,814.87

5.1

3

Not disclosed (Note 3)

Funabashi Logistics

Not disclosed (Note 3)

4.7

4

Scroll360 Corporation

Matsubushi Logistics

19,833.47

4.3

5

Not disclosed (Note 3)

Yokohama Logistics

Not disclosed (Note 3)

3.9

6

Nagasakiya Co., Ltd.

La Park Kishiwada

15,356.34

3.3

7

Rembrandt Inn

REMBRANDT STYLE Tokyo
Nishikasai
BEST WESTERN Yokohama
REMBRANDT STYLE Tokyo
Nishikasai Grande

12,735.16

2.7

8

Not disclosed (Note 3)

Funabashi Hi-Tech Park Factory I

Not disclosed (Note 3)

1.8

9

Mr Max Holdings Ltd.

Suroy Mall Chikushino

7,997.08

1.7

10

Sakoda Co., Ltd.

Suroy Mall Chikushino

Not disclosed (Note 3)

1.7

165,428.25

35.7

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, 2023.
(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.

- 37 -

(g) Capital Expendituresa.

Schedule of Capital Expenditures for the 15th 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, 2023. Please note that the expected construction amounts
include portions that are expensed as a separate account item of accounting costs.

b.

Name of real estate, etc.
(Location)

PurposeScheduled period

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

REMBRANDT STYLE Tokyo
Nishikasai(Edogawa Ward, Tokyo)

Air-conditioning equipment
upgrading work

From: Jul. 2023
To: Jul. 2023

58,500－－

Seishin BLDG.
(Shinjuku Ward, Tokyo)

Entrance renewal work

From: Jul. 2023
To: Jul. 2023

50,000－－Urban Center Fujisawa(Fujisawa City, Kanagawa)Restroom renewal work

From: May 2023
To:
Jul. 2023

42,000－－Higashi Kobe Center Building(Kobe City, Hyogo)

Elevator renewal work

From: Nov. 2022
To:
Apr. 2023

39,000－－

Yokohama Logistics(Yokohama City, Kanagawa)Air-conditioning equipment
expansion work

From: Jul. 2023
To: Jul. 2023

38,000－－Higashi Kobe Center Building(Kobe City, Hyogo)

Mechanical parking
renovation work

From: May 2023
To:
Jul. 2023

34,500－－Urban Park Tokiwadai Koen
(Yokohama City, Kanagawa)Work to convert mechanicalparking to single level

From: Jun. 2023
To:
Jul. 2023

30,000－－Urban Center Shin-Yokohama(Yokohama City, Kanagawa)Elevator renewal work

From: May 2023
To:
Jul. 2023

27,000－－

Seishin BLDG.
(Shinjuku Ward, Tokyo)

Restroom renewal work

From: Apr. 2023
To: Apr. 2023

26,500－－

Seishin BLDG.
(Shinjuku Ward, Tokyo)

Air-conditioning equipment
upgrading work

From: Jul. 2023
To: Jul. 2023

23,700－－

La Park Kishiwada(Kishiwada City, Osaka)

Exterior wall renovation
work

From: Jun. 2023
To: Jun. 2023

22,800－－Urban Center Tachikawa(Tachikawa City, Tokyo)

Restroom renewal work

From: Mar. 2023
To: Mar. 2023

22,700－－

Seishin BLDG.
(Shinjuku Ward, Tokyo)

Water supply and drainage
pipe upgrading work

From: Feb. 2023
To:
Jul. 2023

20,500－

Matsubushi Logistics
Air-conditioning equipment(Kitakatsushika-gun, Saitama) upgrading work

From: Jul. 2023
To: Jul. 2023

20,230－－Urban Center Tachikawa(Tachikawa City, Tokyo)

Entrance renewal work

From: Jul. 2023
To: Jul. 2023

20,000－－Urban Park Gyotoku(Ichikawa City, Chiba)

Store compartment
partitioning work

From: Jul. 2023
To: Jul. 2023

20,000－－Capital Expenditures during the 14th fiscal period
The following summarizes the primary construction works that constitute capital expenditures implemented for theassets held by SAR as of January 31, 2023, during the 14th fiscal period. Capital expenditures for the 14th fiscal
period amounted to 605,932 thousand yen and, when combined with the 173,257 thousand yen in repair expenses
charged to the same period, it totals 779,190 thousand yen in construction works implemented.
- 38 -Name of real estate, etc.
(Location)

Purpose

PeriodConstruction costs(thousand yen)

Minami-Azabu Shibuya Building(Minato Ward, Tokyo)

Elevator renewal work

From: Sep. 2022
To: Nov. 2022

36,983Seishin BLDG.
(Shinjuku Ward, Tokyo)

Common area renewal work
(4F, 5F, 6F, 7F and 10F)

From: Dec. 2022To:
Jan. 2023

33,692

Hakata-eki East Place(Fukuoka City, Fukuoka)

Air-conditioning system
upgrading work (1F, 2F and 7F)

From: Nov. 2022
To: Dec. 2022

30,145

Urban Park Tokiwadai Koen
(Yokohama City, Kanagawa)Elevator renewal work

From: Sep. 2022
To: Sep. 2022

24,642Asahi Building(Yokohama City, Kanagawa)Air-conditioning system
upgrading work (1F) (phase 10)

From: Dec. 2022To:
Jan. 2023

23,939Urban Center Tachikawa(Tachikawa City, Tokyo)

Common area renewal work
(3F and 4F)

From: Nov. 2022
To: Dec. 2022

20,545－435,983－

OthersTotal

605,932- 39 -

(h) Income Statement by Asset Type (Use)① Total operating revenue from(thousand yen)real estate leasing
Rental revenue
Other lease business revenue② Total operating expenses from(thousand yen)real estate leasing
Management fee
Utilities expenses
Property taxes
Repair expenses
Trust fee
Insurance premium
Other expenses(thousand yen)
③ NOI (①－②)(thousand yen)
④ Depreciation⑤ Operating income (loss) from(thousand yen)real estate leasing (③－④)(thousand yen)
⑥ Capital expenditures(thousand yen)
⑦ NCF (③－⑥)(million yen)
Acquisition price(million yen)Book value at end of period(million yen)
Estimated value at end of period
Occupancy rate at end of period
End of January 2021
End of July 2021
End of January 2022
End of July 2022
End of January 2023

Officetotal

Retailtotal

Residence
total

Logistics
facility
total

Hotel
total

Portfolio
total

2,377,116

1,227,438

1,333,996

985,459

539,385

6,463,396

2,148,351
228,765

1,107,536
119,901

1,278,994
55,002921,299
64,159539,385-

5,995,567
467,828

724,288454,518

370,507

196,416

66,7591,812,490

174,635
212,993179,051
62,987
8,230
4,639
81,7501,652,828
266,332

137,456
157,395
78,46912,2493,418
2,508
63,020772,919
96,286

88,63728,041
86,20882,942
7,650
3,483
73,544
963,489
144,583

32,64463,93678,762
11,665
3,350
1,907
4,150
789,042
146,8238,030
635,754
3,411
3,518
1,059
14,978472,626
89,635441,402462,373458,246
173,257
26,166
13,598237,444
4,650,905
743,661

1,386,495

676,632

818,906

642,218

382,9903,907,244

344,563
1,308,264
74,78775,282
82,98084,181
688,737
27,75427,71328,370116,389
847,099
37,77938,46045,46030,218758,824
30,36529,541
34,08630,579442,046
24,144
23,84423,010605,932
4,044,973
194,829
194,843
213,906

95.8%
93.1%
92.8%
93.7%
94.3%

98.8%
98.8%
99.4%
98.6%
98.6%

95.7%
94.4%
95.1%
97.5%
97.5%

97.8%
97.8%
97.8%
97.8%
98.6%

91.3%
100.0%
100.0%
100.0%
100.0%

96.9%
96.6%
96.7%
97.2%
97.6%

- 40 -