"Financial Results for the 16th Fiscal Period Ended January 2024"

Star Asia Investment Corporation

スターアジア不動産投資法人（3468）
スターアジア投資顧問株式会社

Contents

Characteristics of Star Asia Investment Corporation (SAR)

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

1.

Executive summary2

2.

Amendment to the Management Guidelines

5

3.

Actual and forecasted distribution

7

4.

Operating results for the FP16 ended January 2024

13

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

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

Investment policy
5.

Progression Status of Mid-term plan

25

6.

Initiatives on ESG

33

7.

Appendix

39

8.

Note

62

Prioritized, focusedinvestment in theTokyo Area (＊１)
Investment ratio
70%±10％or higher in theTokyo Area

Achieving income
stability and growththroughdiversification ofasset type

Investment primarily
in middle-size
assets (＊2)*Unless otherwise stated within this document, references to all monetary amounts have been rounded down to the nearest monetary unit described, and ratios have been rounded to the decimal point described.
* In this document, Star Asia Investment Corporation may be referred to as "SAR"＊ 1 “Tokyo area”: “Tokyo area” refers to Tokyo and the three prefectures of Kanagawa, Saitama and Chiba.
＊ 2 “Middle-size assets” are properties with acquisition prices of less than JPY10bn.

11．Executive Summary2

1. Executive Summary (1)Overview of FP (ended January 31, 2024)

Forecasts for FP17 / FP18

◆ KPI

◆ Forecasted Distributions Per Unit

Performance Indicators

Forecast

Actual Results

differencechange ratio

Distribution per unit（※）

1,513 yen（124 yen）

1,524 yen
（37 yen）＋11 yen＋0.7％

Earnings Per unit（※）

1,389 yen

1,487 yen

＋98 yen＋7.1％

Net income

3,296 mn.

3,528 mn.

＋231 mn.

＋7.0％※ The figure in brackets ( ) for DPU is the amount for which internal reserves have been utilized※EPU is calculated by dividing net income by the total number of investment units issued and outstanding◆ Operational results⁃ Net income increased by 7.0% compared to forecast/ Withdrawal from internal reserves (205mn) was reduced – tobe used for future internal growth measures.
⁃ Increase in asset size was achieved through public offering and asset replacements
End of FP16: 243.8 billion yen.
⁃ ～Rental income from 7 newly acquired hotels: 20.8% increase over forecast⁃ Office unit rent increased: 2.8% increase for newly entering tenants, 11.0% increase for contract renewals.
⁃ Monthly rents for residences increased: 7.8% increase for newly entering tenants, 2.0% increase for contract
renewals.
⁃ Suroy Mall Chikushino：Lopia opened, Funabashi Hi-Tech Park I: Building extension completed.

FP17

1,520 yen (55yen)

FP18

1,538 yen (37yen)◆ Growth Driver for FP17 and Beyond① Further increase in rents* from the hotel portfolio,
especially from the seven newly acquired properties② Increase in revenue at Shuroy Mall Chikushino in the
short term by attracting new tenants (*), and in themedium term by increasing rents and expanding
existing tenants③ Increase in occupancy rate (*) Increase in rent at
residential properties (rent increase not factored into
earnings forecast)④ .Rent increase in offices (rent increase notincorporated in earnings forecast) and increase inoccupancy rate (*)※ Partially incorporated in earnings forecast

Topics on FP16
＜ Summary of 6th Public Offering ＞◼ Executed in August 2023: Acquired 11 properties/ total
amount: 49.1 billion yen◼ Asset size expanded to 243.8 billion yen (at end of
FP16)◼ Increased exposure towards hotels at the best timing.
◼ Increase in hotel revenues due to rise in accommodation
demand has contributed to internal growth.
◼ By incorporating newly built and recently built properties,
average number of years since construction has
improved to 21.1 years (formerly 24.9 years). ※as of May 31, 2023

＜ Rating ＞◼ JCR ： A（Stable）⇒A+（ Stable ）へ◼ R&I ： A-（ Stable ）⇒A（ Stable ）へ◼ Ratings improve from the 2 rating agencies
stated above.
◼ Expected effects of ratings improvement⇒ Reduction of borrowing costs⇒Improvement in credit evaluation from lender financial
institutions⇒Diversification of funding methods.

＜ ESG ＞◼ GRESB: Obtained “3 Stars” and “Green Star” ratings.
⇒Participated in the 2023 GRESB Real Estate Assessment, andobtained “3 Star” and “Green Star” ratings for 3 consecutive years.
⇒In the GRESB Public Disclosure Assessment, obtained the highest
rank “A level”.

◼ Environmental certification: Newly obtained for 7
properties (of which 2 properties, certification waschanged from existing certification to anothercertification), and the certification ratio has become
43.9%.

3

1. Executive Summary (2)Change in portfolio of assets under management due to active management
FP15 End of July 2023

Corporate Action

Number of properties◼ Asset replacement(8th)・ Sale of Funabashi High Teck Park・ Partial acquisition of Mezzanine Loan
Debt Investment (Series 8) B

◼ PO(6th) Acquired 11 properties◼ Asset replacement(9th,10th)・Sale of two older single type residences.
・Acquisition of preferred securities of
HAKUSAN HOUSE・Partial acquisition of Mezzanine Loan Debt
Investment (Series 8) A

Property：62

65

Mezzanine：2
Preferred securities ： 1

Hotel,
12.7％
Logistics,
15.1％
Residence,
19.2％

Property：71

74

Mezzanine：2
Preferred securities ： 1

Student Residence,
0.6%

Student Residence, 0.8％

Asset size

FP16 End of January 2024

Office,38.1％

Office,30.7%

Hotel,
29.0%

243. bn

196.4 bn
Retail ,14.1％

Logistics,
12.3%
Residence,
16.0%

Retail,11.4%

Ratio of assets in Tokyo area(note1）

68.9 ％ / 74.8 ％ （※）

63.6 ％ / 67.9 ％ （※）

Ratio of mid-sized assets（note2）

98.5 ％

97.3％

Averagebuilding age(Note3)

24.9 years

21.8 years

Portfolio appraisal NOI yield

4.8 ％

4.8 ％

(Note4)※ Tokyo Area Ratio: The ratio to the left is the ratio of assets located in the Tokyo Area to the entire portfolio. The ratio to the right is the ratio when excluding suburban retail facilities which are assumed to be sold.

4

2．Amendment to the Management Guidelines5

2．Amendment to the Management Guidelines◆ Basic policies of prioritizing investments in the Tokyo Area and making focused and prioritized investments remains the same. Given increase in the level of risk tolerance, thetarget Tokyo Area investment ratio has been changed from “70% or more” to “70%±10％”.
◆ Strategic investments into large-size assets were formerly limited to the 5 main wards in Central Tokyo, but this has been expanded to the Tokyo Area, Osaka Area, Fukuoka
Area, and Nagoya Area.

Background of Amendment and Key Points

Investment Target Areas and Investment Ratios after Amendment
The changes are indicated by underlines

Area Classification

Target Areas

Investment Ratio＜Back ground of Amendment>⚫
⚫

Tokyo, Kanagawa, Saitama,Chiba
prefectures

Tokyo Area

Major
Metropolitan
Areas

Osaka
Area

Osaka-shi,
Osaka prefecture

Fukuoka
Area

Fukuoka-shi,
Fukuoka prefecture

NagoyaArea

Nagoya-shi,
Aichi prefecture

In principle,
70％±10％*For
residences,logistics
facilities
and hotels, also
includestheneighboring areas.

⚫

In principle,
20％±10％⚫

In principle,
10％±10％Investments in “Other Areas” shall be made based on strict selection, after carefully consideringstability of income and growth potential, while taking into account location characteristics andpopulation concentration of surrounding areas etc.
Other Areas (other than the above-mentioned investment target areas)

Status of Current Portfolio (Real estate properties etc. /Securities etc.)
Real estate properties 71＋

Securities etc. 3＜ Based on Area ＞

Major
Metropolitan
Areas, 19.3%＝

243,871mn.

＜ Based on Asset type＞

Other
Areas,
17.1%

Student Residence,
0.6%

Osaka Area,
12.8%

Office,30.7%

Hotel,
29.0%

Fukuoka Area,
6.5%

Tokyo
Area,
63.6%

⚫

Given the expansion of asset size, the impact of a single property on the entire portfolio has been
reduced, and it has been determined that the level of risk tolerance of the portfolio has increased.
As a result of property acquisitions and asset replacements implemented after formulation of the midterm business plan (in March 2021), the investment ratio has temporarily become lower than the “Tokyo
Area ratio of 70% or more” standard, and this condition has continued. has continued.
Concerning the suburban-type retail facilities (located outside of the Tokyo Area) which was incorporated
due to the merger, the policy is to dispose of them in the future; however, as of today, we are taking
measures to increase the value based on a business plan, and the timing of disposal is not yet decided.
With respect to the financial policy, under the policy to maximize unitholders’ interests, in order to control
financing costs to maintain and improve distributions per unit (DPU), particularly concerning financing
costs upon conducting debt financings, the policy for decisions to be made in a timely and appropriate,taking into the status of interest rates and prospects of the future financial environment has beenclarified.
Taking the above matters into account, the ”Management Guidelines” has been amended while
maintaining the main investment policies.

<Key Points of Amendment>■Investment Target Areas and Investment Ratios⚫ The policy to prioritize the Tokyo Area and making concentrated and prioritized investments will bemaintained, and the range of such investment ratio has been expanded from “70% or more” to“70%±10％”⚫ In cases where the ratio temporarily falls outside of the prescribed scope due to mergers etc., itshould be resolved in around 5 years.
■Strategic Investments into Large-Size Assets⚫ Concerning the strategic investments into large-size assets (acquisition price of 10 billion yen ormore) which was limited to the 5 main wards within Central Tokyo area, given that high demand is
expected for all asset types in the Tokyo Area and Major Metropolitan Areas, and it is believed thatvacancy risk and rent reduction risk is relatively low in such areas, such investments in large-size
assets are allowed in the Tokyo Area and the Major Metropolitan Areas.
■Financial Policy⚫ Concerning debt finance for which the basic policy has been to fix interest rates, the policy has
been revised to control financing costs in a timely and appropriate manner, aiming to maintain andimprove distributions per unit (DPU) while taking into consideration the asset side status of thebalance sheet and future outlook of the financial environment⚫ The policy is the same as before to the extent that we will continue to aim to diversify lenders,
achieve stable borrowings, and to diversify repayment deadlines.

Logistics,
Retail,12.3% Residence, 11.4%
16.0%

6

3．Actual and forecasted distribution

7

3. Actual and forecasted distribution (1)Actual distributions for FP16 ended Jan 31, 2024
◆ In the FP16, rental income from hotels significantly exceeded the initial forecast, so the amount of retained earnings reversal was reduced (205 million yen) and utilized forstrategic investments◆ DPU for FP17 and FP18 remain unchanged from the previous forecast／Actual rental income from hotels (especially the seven newly acquired properties in the FP16) was higher
than the previous forecast, but the track record since acquisition is short, and at least one year is needed to understand factors such as seasonality.

FP16(ending Jan 2024)-Actual-FP17(ending Jul 2024)-Forecast-

FP18(ending Jan 2025)-Forecast-

1,524 yen

1,520 yen

1,538 yen

+ 11 yen (+0.7%) vs： forecast
Utilization ofInternal Reserve： 37 yen

Utilization of Internal
Reserve: 55 yen

Utilization of Internal
Reserve: 37 yen≪ Our Policy to Maintain Distributions per unit ≫◼ Policy to maintain the distribution per unit for
the FP18 as the lower limit
After FP18
maintain

1,538 yen(yen）<Non-operating
Expenses>
Decrease of financecosts<P/L from Leasing
Business>
・Increase in Hotel
Revenue etc.

P/L from Leasing Business

DPU/16FP Forecast<Gain on sales ofreal estate andotherassetsExtinction ofgain on sales<Internal
Reserve>
Decrease inusing Internal
Reserves

OthersNon-operating Expenses

Internal Reserve

DPU/16FP result<Internal
Reserve>• Implemented
Internal
Reserve< P/L from Leasing
Business >・PO during the FP16
・ Dilution by PO

P/L from Leasing Business

Gain on sales<Non-operating
Expenses>
Increase of financecosts<Non-operating
Expenses>
Decrease of finance
costs

OthersNon-operating Expenses< P/L from Leasing
Business >・PO during the FP16
・ Dilution by PO

DPU/ FP17 Forecast

Internal Reserve<Internal
Reserve>Use Internal
reserve

Non-operating Expenses Internal Reserve

P/L from Leasing Business

Others

DPU/FP18 Forecast

88

3. Actual and forecasted distribution (2)Operational Results (Summary) for FP16 ended Jan 31, 2024 andForecast Assumptions for FP17 ended Jul 31, 2024 and FP18 ending Jan 31, 2025
◆ Office: Achieved an increase in unit rent; Residential: Average occupancy rate of over 95.0% in the 16th period; also achieved an increase in rent from logistics◆ Hotel rental revenue increased 12.9% compared to the forecast due to improved demand for lodging / Increased revenue from 7 newly acquired hotels (actual
results for the FP16)
Forecast Assumptions for FP17 ended Jul 2024 andFP18 ended Jan 2025

Actual Result of FP16 ended Jan 2024

Office• Realized increase in unit rent while maintaining occupancy rates. (End of FP15:
13,833 yen per month per tsubo ⇒ 13,855 yen per month per tsubo)• The active movements of potential tenants continued, and new tenants have beensteadily attracted.
• 14 new contracts: Average increase amount of 2.8%（including transfers from subleases）• Achieved rent increases at time of renewal: 5 tenants, average increase of 11.0%.

Retail• During the FP16, income remained stable (End of FP15 occupancy rates : 97.9% ⇒End of FP16: 97.0％)• New entries: 4 tenants (3,858.79㎡) /Exited: 7 tenants (4,971.12㎡), impact is limited• At Suroy Mall Chikushino, “Lopia”, a supermarket with high ability to attract customers,
was opened• Tenant replacements at Abeno nini has been completed (average rent increase of
13.0% was achieved compared to before).

•
•
•
•

•

•

A certain level of increase in occupancy rates is anticipated.（FP17：
98.2％、FP18：98.5％）
Focus on rent increase, but rent increase was not included in theforecast
Almost no change in downtime period at the time of tenant replacement
FP17, FP18: 5 new contracts, 8 cancellation notices, 12 rent increases
upon renewals, 2 rent decreases upon renewals (partially reflected inearnings forecast). ※as of Mar 15, 2024
Given the opening of “Lopia” at Suroy Mall Chikushino (in December2023), the facility’s ability to attract customers has improved.
Accelerate promotion of leasing activities for vacant space- Pursue realization of internal growth
For the retail facility as a whole, finding new tenants for vacant space isanticipated to a certain extent.（FP17：98.7％、FP18：98.9％）

Residence• The occupancy rates during the FP16 have averaged at 95% or higher, including the
4 newly acquired properties.
• Residences held from before (extracted only the residence portion) achieved rent
increases at the time of entering into new contracts and upon contract renewals (Newcontracts: 7.8% increase; upon renewals: 2.0% increase)• Disposed of 2 single-type residences (on August 31, 2023)
Realized gain on sale.

••

Logistics• Income remained stable during the FP16.
At Barak Logistics, in response to need to increase floor space, the fixed-termbuilding lease agreement for 1 tenant was not renewed, and the entire building wasleased to one tenant (from August 1, 2023).
Realized increase in rented area and increase in rents.
Completed building expansion at Funabashi High-tech Park Factory I (December
2023)• Hotels have performed well due to increase in accommodation demand. Rent income
from all 16 hotels was 12.9% higher than forecast (total amount of approximately
1,664 million yen).
In particular, for the 7 newly acquired properties, rent income was 20.8% higher thanforecast (total amount of approximately 1,081 million yen), contributing to internal
growth.

◼ Internal growth expected from variable rent revenues from the 7 newly
acquired properties. However, earnings forecast remains largely in linewith the assumption at the time of acquisition◼ Variable rent revenues are also expected from the hotel properties heldfrom before.
(Hotels with variable rents: 6 out of 9 hotels held from before.)

Hotel

•

•

•
•

It has been assumed that occupancy rates will improve to a certain
extent for the 3 newly acquired, newly built properties, as well as for theentire residential portfolio.（FP17：97.3％、FP18 97.3％）
No increase in rent is expected in the forecast.
～ We will aim to further increase rents at the time of new contacts andcontract renewals.
Revenues are anticipated to remain stable.
Increase in revenue due to expansion of Funabashi High-Tech Park
Factory I
Currently negotiating rent increase with 1 tenant whose contract period
will end during theConsider measures for properties with tenants exiting during the 19th FP.

9

3. Actual and forecasted distribution (3)Factors for increase/decrease compared with forecast/actual results for the FP16
◆ Significant increase in variable rents of newly acquired hotels.／Total rents for 7 hotel properties: 20.8% increase from forecast◆ Net income from utility costs increased, and also given advance implementation of repair construction works, NOI was＋199 million yen, andnet income for current FP was +231 million compared to forecast.
(unit : mn)
FP16 (ended Jan2024) forecast * 1
Lease business revenue
Office rent
Retail rent
Residence rent
Logistics rent
Hotel rent
Other
Expenses related to rent business (Depreciation
is excluded)
NOI
Depreciation
Rent revenues/expenses
Capex
NCF(NOI-CAPEX)
Gain on sales
Mezzanine
Income from securities lending fees
SGA
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Income before income taxes
taxes
Net income
Cash distribution per unit
FFO per unit

FP16 (ended Jan2024) ActualComparison with forecast

Factors for the increase/decrease

7,468
2,103
1,001
1,205
877
1,476
804

7,524
2,088
1,012
1,183
877
1,666
695

+56
△14
+11
△21
+0
+189
△109

+0.8%
△0.7% <Revenue of leasing business>【Residential properties】 Failure to reach expected occupancy+1.1% rates at three newly properties△1.8%+0.0% 【Hotel】 Increase variable rent （Linked to GOP or Sales, etc.)+12.9%【Other revenue of related leasing business】△13.6% Utility revenue△136 million yen

2,126

1,982

△143

△6.7%

5,342
953
4,388
1,151
4,190
380
12
31
702
4,110
814
3,296
3,296
0
3,296
1,513yen
1,631yen
1,145yen
8,535

5,542
963
4,578
1,107
4,434
374
33
31
708
4,309
1
782
3,528
3,528
0
3,527
1,524yen
1,735yen
1,268yen
8,741

+199
+10
+189
△44
+244
△5
+21
+0
+6
+198
+1
△31
+231
+231
+231
11yen
+104yen+123yen+205(Reference) Net income per unit（※1）第15期決算短信にて公表（2023年9月13日） （※2)当期純利益を期末発行済投資口の総口数で除して算出
1,389yen
1,487yen(Yen per unit) * 2

98yen

AFFO per unit
Balance of internal reserves<Expenses of leasing business>+3.7% Utility costs △191 million yen+1.1% Repair costs +46 million yen
+4.3%
△3.9%
+5.8% <Revenue of Mezzanine loan debt>△1.5% Acquired Series 8 (Centurion hotel Grand Akasaka)+179.9%
△0.0%
+0.9%
+4.8%
△3.8% 【Non-operating expenses】
Interest expense △12 million yen+7.0%
Borrowing cost △18 million yen
+7.0%
0.0%
+7.0%
+0.7%
+6.4%
+10.7%
+2.4%
+7.1%

10

3. Actual and forecasted distribution (4)Forecast of business results for the FP17 ending Jul 2024 / the FP18 ending Jan 2025
◆ The 11 properties acquired in the FP16 ended January 2024 will contribute fully to the performance of FP17 ending July 2024. Further increasein hotels revenues is anticipated going into the FP18 ending January 2025.（ Forecasts are generally in line with initial assumptions） (unit : mn)
FP16
Forecast for(ended Jan. the FP17
Increase/decrease2024) Actual ending Jul
(B-A)
(Ａ)
2024 (B)
Lease business revenue
Office rent
Retail rent
Residence rent
Logistics rent
Hotel rent
Other
Expenses related to rent business(Depreciation is excluded)
NOI
Depreciation
Rent revenues/expenses

CAPEX
NCF(NOI-CAPEX)
Gain on sales
MezzaninePreferred securities lending fee
SGA
Operating income
Non-operating income
Non-operating expenses

7,524
2,088
1,012
1,183
877
1,666
695

7,894
2,137
1,046
1,265
914
1,877
652

1,982

2,051

5,542
963
4,578
1,107
4,434
374
33
31
708
4,309
1
782
3,528

5,842
1,034
4,807
867
4,975
33
31
713
4,159
681
3,477

3,528

Forecast for
Major factors for the increase/decrease the FP18
Increase/decrease(VS FP16 Actual)ending Jan(C-B)
2025(C)+4.9% ＜Lease business revenue＞+2.3% 【Office】
Urban Center Shinjuku +33mn+3.4%【Residence】+6.9%
2properties sold in FP16 △13mn+4.3%
4properties acquired in FP16 +81mn+12.6% 【Logistics】
Baraki Logintics +21mn△6.1%
Funabashi Hi-Teck FactoryⅠ +13mn+68+3.5% 【Hotel】
7properties acquired in FP16
+300
+5.4%
+71
+7.4% +217mn【Other】+229+5.0%
Loss of cancellation penalty△239 △21.6% income△37mn+540+12.2%△374 △100.0% ＜Expenses related to rent business＞+0△0.6% 2properties sold in FP16 △7mn
11properties acquired in FP16+0△1.1%+122mn+4+0.7% Repair expenses △85mn△150△3.5% Utility expenses +14mn△1 △100.0% Taxes +15mn△101 △12.9% Leasing-related expenses △9mn
+369
+48
+34
+81
+37
+210
△42

△50

△1.4% ＜Gain

3,477

△50

△1.4%

0
3,527

0
3,476

△50

FFO per unit

1,524円

1,520yen△4yen

AFFO per unit
Balance of internal reserves

1,735yen
1,268yen
8,741

1,902yen
1,536yen
8,612+167yen+268yen△128-%△1.4% ＜Non-operating expenses＞△0.3% Interest expenses +41mn
Leasing-related expenses △142mn+9.6%+21.1%△1.5%

1,487yen

1,465yen△22yen△1.5%

Ordinary income
Income before income taxes
Taxes
Net income
Cash distribution per unit

on sales of real estate＞
FP16：Urban Park Gokokuji,
Urban Park Koenji

Major factors for the increase/decrease(VS FP17 Forecast)

+196
+24
+14
+25
+1
+120
+8

+2.5% ＜Lease business revenue＞+1.2% 【Retail】
Suroy Mall Chikushino +15mn+1.4%【Residence】+2.0%
4properties acquired in FP16 +24mn+0.2% 【Hotel】+6.4% 7properties acquired in FP16 +114mn
+1.2%

2,070

+19

+0.9%

6,019
1,058
4,961
884
5,134
34
31
730
4,296
733

+176
+23
+153
+17
+159
+0
+0
+17
+136
+52

3,562

+84

+3.0%
+2.3%
+3.2%
+2.0%
+3.2%
+1.1%
+1.1%
+2.4% ＜SGA＞+3.3% Asset management fees +12mn+7.7% ＜Non-operating expenses＞
Interest expense +54mn
+2.4%

3,562
0
3,561

+84
+84

+2.4%
-%
+2.4%

1,538yen+18yen+1.2%

1,947yen
1,574yen
8,526+45yen+38yen
△86

+2.4%
+2.5%
△1.0%

1,501yen+36yen

+2.5%

8,090
2,162
1,061
1,291
916
1,997
660

(Reference) Net income per unit

(Yen per unit)
Lease business revenue（※1） Calculated by dividing net income by the total number of units issued and outstanding at the end of the period11

3. Actual and forecasted distribution (5)FP16（Jan 2024） Balance of Payments of Individual Properties
FP15 Actual（July 2023）

FP16 Actual（Jan 2024）

FP17 Forecast（July 2024）

FP18 Forecast（Jan 2025）

HTL,
9.0%

Revenue
Ratio（※）

LGC,
14.8%
RSC,
20.6%

HTL,
22.2%

OFC,
36.6%
LGC,
12.3%

RTL,
19.0%

HTL,
23.8%

OFC,
31.9%
LGC,
12.3%

RTL,
RSC, 16.5%
17.2%

HTL,
24.7%

OFC,
31.0%
LGC,
12.0%

RTL,
RSC,
15.5%
17.4%

OFC,
30.7%

RTL,
RSC, 15.4%
17.2%（※） Ratio of total operating revenue from real estate leasing by asset type to total operating revenue from estate leasing business revenue（Unit : Thousand yen）

Office
OFC

RetailRTL

Residence
RSC

Logistics
LGC

Hotel
HTL

Total

FP15

FP16

FP15

FP16

FP15

FP16

FP15

FP16

FP15

FP16

FP15

FP16

2,383,090

2,397,454

1,233,536

1,241,310

1,337,505

1,290,776

964,998

926,298

584,065

1,669,076

6,503,195

7,524,917

2,190,554

2,205,321

1,116,740

1,082,343

1,281,422

1,237,451

875,448

883,667

584,065

1,669,076

6,048,231

7,077,860

192,535

192,132

116,795

158,967

56,08253,32589,55042,631--454,964

447,056

771,943

737,628

500,759

487,792

409,890384,398

192,559

209,813106,064

163,271

1,981,218

1,982,903

175,417

183,350

146,536

143,12190,492

84,57432,393

31,253

8,076

12,489452,917454,790

Utilities expenses

176,505

174,637

149,077

138,237

21,672

17,27142,05642,3934

3389,316

372,542

Taxes and dues

189,611

189,597

87,763

87,881

87,27885,262

77,63876,67750,70850,753493,000

490,171

Repair expenses

109,61296,76534,04047,580110,658

94,30428,78949,032

25,71531,947

308,817319,629

Trust fee

10,563

8,263

4,250

3,600

8,950

7,622

3,340

3,000

3,550

6,183

30,653

28,668Insurance premium

4,560

4,835

2,482

2,615

3,394

3,589

1,814

1,898

1,071

2,374

13,322

15,314

105,672

80,17876,60864,75687,444

91,773

6,525

5,557

16,93859,519293,190

301,786

1,611,146

1,659,826

732,776

753,518

927,614906,378

772,439

716,485

478,000

1,505,805

4,521,977

5,542,013

279,344296,217

98,489101,441

148,260

151,785

146,285

151,625

90,973

262,532

763,353

963,602

1,331,802

1,363,608

634,286

652,076

779,353754,592

626,153564,859

387,026

1,243,272

3,758,623

4,578,410

467,754414,498

68,418150,429

87,20572,799112,387

430,965

52,22538,497

787,991

1,107,190

1,143,392

1,245,327

664,357

603,088

840,409

833,579

660,052

285,519425,774

1,467,307

3,733,985

4,434,822

75,47075,76027,68327,73238,39939,642

28,81829,09823,80569,415

194,178

241,648

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

Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value(million yen)12

4．Operating results
for the FP16 ended January 2024

13

4．Operating results for the FP16 ended Jan 2024 (1)- Occupancy rate status ◆ For the portfolio as a whole (real estate properties etc.), occupancy rates were maintained at or above 97.0% during the FP16 (on a contracted
floor area basis).
◆ For offices, prioritized increasing rents over improving occupancy rates/ For retail facilities, as a strategy, instead of holding up exiting tenants,
aimed for rent increases upon attracting new tenants from the following period.
100.0%

Hotel, 100.0%

99.0%
Logestics, 98.6%
98.0%
Total, 97.5%
Retail, 97.0%
Office, 96.5%

97.0%

96.0%
95.0%

Residence, 95.5%
Acquisition of 1 new
residential property

94.0%
93.0%

Acquisition of 2 new
and 1 almost new
residential property

92.0%
91.0%
OfficeRetailResidence

Logestics

Hotel

FP15

Total

FP16

90.0%

FP13
(Jul 2022)

FP14(Jan 2023)

FP15(Jul 2023)

FP16
Aug 2023

Sep 2023

Oct 2023

Nov 2023

Dec 2023

Jan 2024

Office

92.8%

94.3%

96.9%

96.9%

96.4%

95.8%

96.1%

96.4%

96.5%

Retail

99.4%

98.6%

97.9%

97.2%

97.2%

97.2%

97.0%

97.0%

97.0%

Residence

95.1%

97.5%

97.1%

96.7%

95.5%

95.9%

96.4%

93.5%

95.5%

Logistics

97.8%

98.6%

98.6%

98.6%

98.6%

98.6%

98.6%

98.6%

98.6%

Hotel

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Total

96.7%

97.6%

97.9%

97.6%

97.5%

97.5%

97.6%

97.0%

97.5% 14

4. Operating results for the FP16 ended Jan 2024 (2)- Office ①- Status of change in tenant as of the end of the FP16
Operating result for office

Status of change in tenant as of the end of the FP16

<Actual performance for FP16>◼ Entry and moving out of tenants:
Newly contracted area (3,375.39㎡) < moved out area (13,726.48㎡).
◼ Newly attracted tenants: 13 tenants (rents increased on average of 2.8% compared tobefore)◼ Free rent: Average 2.7 months.
◼ Increase in rents at time of contract renewal: 6 tenants (average of 11.0% increase
compared to before)◼ No reductions at time of contract renewal.
◼ Rent increases and decrease realized during the lease periods, instead of at the time ofcontract renewals. (rent was increased by 6.7%)
increase 2 tenants, decrease 1 tenant<Forecast for FP17 and onwards>◼

Maintain and improve occupancy rates, and focus on rent increases (at time of entering into newcontracts and upon contract renewals.)～ Occupancy rates：FP16 96.5％→FP17 98.2％→FP18 98.5％※ Newly contracted tenants include tenants with direct contracts at Urban Center Hakata (6 tenants).
※ Exiting tenants include sub-lessees at Urban Center Hakata.
※ For the calculation of average free rent periods, only the tenants newly entered during the FP16 have been extracted.

Number oftenants＜New Contract＞

6

Same rent

4

Rent down

4＜Renewal＞

54

Rent up(※)

5

Same rent

49

Rent down

0

11,780.66 ⁃ Average +11.0% increase at
1,124.80 renewal + 510 thousand
yen/month
10,583.86 ⁃ No tenant reduction at the time
0.00 of renewal※ Only tenants whose contracts were up for renewal during the FP16

＜Leaving＞

Contracted occupancy rate / effective occupancy rate
98.0%

3,375.39⁃ Average rent increase of 2.8%
1,856.03+ 488 thousand yen/month
699.80 ⁃ Average free rent 2,7 months
819.56

13

Rent upArea(㎡)

8

3,726.48

Contract Rent Period of Office Portfolio
8,000 ㎡

97.0%

96.5%

96.0%

96.1%

95.0%

4,000 ㎡

94.0%

2,000 ㎡

93.0%※（ ） Number of tenants

6,000 ㎡

0,000 ㎡

92.0%

(7)
(7)

(19)
(19)

(10)
(10)

(13)
(13)

(7)
(7)

(8)
(8)

(13)

(14)
(14)
(13)
(13)

(9)
(9)
(7)
(7)

(12)
(12)

(12) (12) (14)
(12)

(14)

(13)
(13)

(10)

(7)

(8）
（8)

(10) (10) (7)(10)-2,000 ㎡

91.0%
90.0%

-4,000 ㎡

89.0%-6,000 ㎡

2021/82021/122022/42022/82022/122023/42023/8※ Effective occupancy rate = (Contracted area - Rent-free area) / Leasable area

2023/12-8,000 ㎡
FP7
第7期 FP8
第8期
2019/7
2019/7 2020/1
2020/1

FP10 第11期
FP11 第12期
FP12 第13期
FP13 第14期
FP14 第15期
FP15第16期
FP9
FP16
第9期
第10期
2021/1 2021/7
2021/7 2022/1
2022/1 2022/7
2022/7 2023/1
2023/12023/7
2023/72020/7 2021/1
2024/12024/1
2020/715

4. Operating results for the FP16 ended Jan 2024 (3)- Office - ② Status of Rent Gap and Trends in Unit Rents
Contract Rent Period of Office Tenants

Trends in Market Rents and Contract Rents per Unit, Average FR Period（yen）13,950

Average unit rent（yen/tb）
Market Rent（yen/tb）

13,91913,90013,855
13,85013,833

13,82035,000.00㎡◼ Given increase in market
rent levels, a positive rent
gap has arisen at the endof the FP16

25,000.00㎡◼ Continued to focus on
increasing rents, aiming
to resolve the rent gap.

13,800◼ During FP17, manytenants will reach timingof contract renewals (88units, approximately
30,000㎡), which is a
（2.5ヶ月）good opportunity
to（2.4ヶ月）increase rents.

13,75013,700◼ Continuous increase inrents have been achieved
starting from the 14th FP
and onwards.

（2.4M）（2.7M）（2.5M）

13,65014FP(2023/1)

15FP(2023/7)

16FP(2024/1)

Rent gap less than0%
Rent gap 0% to less than 10%

30,000.00㎡

88

Rent gap 10% or more

70

20,000.00㎡

68

15,000.00㎡
43
10,000.00㎡
85,000.00㎡
0.00㎡
FP17
2024/7FP18
2025/1FP192025/7FP20
2026/1

FP21 or after
2026/1-

Addressing leasing issues

Total monthly rent at the end of the period【Urban Center Tachikawa （Tachikawa-shi, Tokyo）】（thousand yen）
Increase

Decrease

Total•

One vacant floor Renovations of toilet etc. during vacant period.

Acquisition price

1,804 mil•During the FP16, leasing activities conducted focusing on rents.

Structure

RC S 6F/1B•

There is tenant candidate. Aiming to sign contract in FP17

Leasable area

3,400.47㎡

Jul 2023

Jan 2024

Construction
completion

May 1990

82.3 ％

82.3 ％【Urban Center Kanda Tsukasamachi（Chiyoda-ku, Tokyo）】• Some space with tenants exiting during the FP16

New
Contract

FP14
Cancellation

New
Contract

FP15
Increaseduring term

Cancellation

FP16
Increaseduring term

• Negotiating with successor tenant candidate towards
signing a contract.

Acquisition price

4,590 mil

Structure

SRC 8F/1B

Leasable area

3,254.44 ㎡

Jan 2023

Sep 2023

Apr 2024（anticipated）

Construction
completion

Jan 1988

100.0 ％

88.7 ％

100.0 ％

16

4. Operating results for the FP16 ended Jan 2024 (4)- Retail ◆ Basic policy: The policy to sell suburban retail facilities is maintained/ Pursue maximization of profits during the holding period◆ At Suroy Mall Chikushino, succeeded in attracting “Lopia” which has high ability to attract customers. Pursue internal growth through leasing activities ofvacant space.

Operating results for Retail

Suroy Mall Chikushino / reevaluation of tenant mix
Succeeded in attracting Lopia, a major supermarket chain＜Retail Basic Information＞
Property nameUrbantype

Location

Number oftenants

Total floor
area
（㎡）

Occupancy rate
(As of Jan 31,
2023)(1) Examination of possible measures to increase traffic to the property; (2) examination of
possible tenant types that would complement existing tenants ➔ commencement ofefforts to attract a supermarket to the property, in light of the high volume of daily traffic itwould bring◼

Since opening on November 22, 2023, sales for the total facility increased to 185% (inDecember).

BAGUS Ikebukuro West

Toshima - ku,
Tokyo

1

1,497.45

100.0%

Abeno nini (Retail)Osaka - shi,
Osaka

5

3,481.03

100.0%

La Park Kishiwada

Kishiwada - shi,
Osaka

48

40,555.40

98.7%

Koka - shi, Shiga

1

23,814.87

100.0%

VacantChikushino - shi,
Fukuoka

19

29,615.26

92.0%

77.07 tb

SuburbanSeiyu Minakuchi
type
Suroy Mall Chikushino

77
97,964.01
97.9 %◼ Stable occupancy during the FP16.
◼ Replace tenants in Abeno nini (Retail). 2 tenants: Rent is increased by an average of 13.0%
compared to the previous period.
◼ Suroy Mall Chikushino: Backed by the ability to attract customers of “Lopia” which opened in
November 2023, we will aim to improve property value, attract new tenants to vacant
spaces, and increase rents for spaces where fixed-term leases will reach maturity.
(tb） ＜ Revision of Contract Period of Suroy Mall Chikushino （ based on floor area ） ＞
8,000.00※（ ） Number of tenants

7,000.00• Existing tenants are all under
fixed-term leases.

6,000.00• By the end of July 2027, fixedterm leases for 78.2% of thetotal floor area will reachmaturity.

5,000.00
4,000.00
3,000.00◼

<Suroy Mall Chikushino Building layout>

In discussions withseveral potential
tenants

unused space

Vacant（2area）

197.83 tb

27.07 tb
40.02 tb

Expansion underconsideration

Leasing activities
in progress

VacantVacant（2area）

200.10 tb

226.78 tb
177.12 tb

Potential tenants
exist：leasing area：vacant area

：parking area

Leasing activities
in progressunused space

2,000.00
1,000.00

(23)

(3)

unusedspace

2027年7月期まで
Until Jul 31,2027

2027年8月期以降
After Aug, 2027

197.83 tb

0.00

Currently
vacant現在空室+※ Tenants whose contracts will expire by the end of the FP ending in Jan 2028 were extracted. From the FP25 (ending July 31, 2028)
onward, 13 tenants (contracted area: approx. 25,923.95m2 )Vacant748.16 tb+

Fixed-term lease expires

7,352.34 tb=※ Tenants whose contracts will expire
by the end of the FP ending in July
2028 were extracted.

Total

8,298.33 tb
17

4. Operating results for the FP16 ended Jan 2024 (5)- Residence ◆ During FP16, 4 newly built / recently built properties were acquired, and 2 old properties were sold (realizing gain on sale) – contributed to improvement of number of years
since completion (shortened)◆ Achieved rent increases at time of new entry of tenants and at contract renewals/ Occupancy rates (including the 4 newly acquired properties) during FP16 averaged 95.6%.

Operating results for Residence

Occupancy Rate Trends for Existing Properties and 4 Newly Acquired Properties＜ Basic Information Residential Portfolio ＞
259／6,197.32㎡

Less than 30㎡

100.0%

1,440／94,780.06㎡

90.0%※ Based on 21 Property owned FP1680.0%30㎡ or more

＜FP16 Actual＞◼ Entering and leaving of tenants ：Area move in（5,511.38㎡）＞ Aria move out （5,215.26㎡）

70.0%◼ Entering and leaving, Rent Fee：Total rent（monthly amount） ＋1,549,100 yen

60.0%

Less than 30㎡
Number oftenants

30㎡ or more

Total monthly
amountNumber oftenants

Total monthly amount17＋22,500yen

83＋828,500yen

Renewal24＋2,000yen

250＋696,100yen

Cancellation

16

79

－

※ Excluding the 2 properties already sold and the 4 newly acquired properties, just the residence portion was extracted and aggregated, and residences
for which the contract type was changed during the contract period have been handled as renewals (the same applies within this page).

Rent increase for new tenants
7.8％ up

11,000Rent increase on contract renewal(Thousand yen)
38,00036,000SingleType(Existing),
96.6%

(※1)
シングル（既存物件）
SingleType (Existing)(※1)

新規取得4物件(※1)
Newly
Acquired 4 (※1)

40.0%

Newly
Acquired 1

30.0%

Newly
Acquired 3

30㎡以上合計
94,773.68㎡

Newly Acquired4,
56.2%

20.0%

6.4%

10.0%
0.0%

2023/82023/92023/102023/112023/122024/1

Total Monthly Rent of Family Type (Existing Properties)※2

Change in monthly rent for new contracts and renewals during the FP16
(Thousand yen)
12,000ファミリー（既存物件）
FamilyType (Existing)

50.0%

New contract－

Family type (Existing)
97.8%

8.0%

7.6%

7.0%

2.0％ up
6.0%

34,0009,000

32,0005.0%

30,0004.0%

28,000

8,000

3.0%

26,000

7,000
6,000

24,0002.0%

22,0001.0%

20,000Total
amount of
従前賃料総額previous rent

Totalamount of
新規賃料総額new rent

Total amount of rent 更新後賃料総額
Total rent after
更新前賃料総額

30㎡以上Less than 30㎡

30㎡未満
30㎡ or more

30㎡以上
Less
than 30㎡

before renewal

renewal30㎡
or more
30㎡未満

0.0%

FP12

FP13

FP14

FP15

FP16

2021/82021/92021/102021/112021/122022/12022/22022/32022/42022/52022/62022/72022/82022/92022/102022/112022/122023/12023/22023/32023/42023/52023/62023/72023/82023/92023/102023/112023/122024/1

10,000※1Singles-type housing : UP Namba, UP Gokokuji (Sold in August 2023), UP Koenji (Sold in August 2023) , Newly Acquired : UP Mitaka, UP Kamata- Minami 1, UP Kamata- Minami 2, UP Umejima※ 2The “Transition of Gross Monthly Rents” has been calculated as the total amount of rents and common-use fees stated in the effective lease agreements at the end of each month, and indexing it to such amount as of the end of August 2021 (assuming suchamount is 100).

18

4. Operating results for the FP16 ended Jan 2024 (6)- Logistics ◆ Completion of building extension of Funabashi Hi-Tech Park Factory I (in Dec. 2023) / Commenced receiving rent for the extended building
portion – expected to contribute to internal growth in FP17 and onwards.
◆ Continued efforts to increase rents at the timing of re-signing of contracts, and contract renewals.

Operating results for Logistics

Extension of Funabashi Hi-Tech Park Factory I<FP16: actual performance>・Occupancy rates stable: Average occupancy rates at logistics facilities 98.6%
・Funabashi Hi-Tech Park I: Completed building extension (Dec. 2023)
・Logistics Facility A: changed to single tenant ⇒ achieved increase in rent, increase in rented floor
space, and cost reduction(lease contract already signed) – Effect of increasing revenues by approximately +7 million yen/ year
・Logistics Facility B: Made certain capital expenditures in response to request from tenant ⇒ realized
rent increase(lease contract already signed) – Effect of increasing revenues by approximately +6 million yen/ year

Building extension at Funabashi Hi-Tech Park Factory I◼ Completed building extension at 2 spots utilizing unused FAR (completed in Dec. 2023)◼ - Implemented internal growth measures ◼ Monthly rent: 25.5% increase◼ Assumed NOI yield for FP17: 6.7%
◼ A part of the extended building obtained a ★★★★★ rating
under the Building-Housing Energy-efficiency Labeling System.

<Initiatives from FP17 and onwards>
・During FP18: lease to expire for 1 tenant (7,177.30㎡) - negotiating rent increase・During FP19: lease to expire for 1 tenant (5,994.75㎡), received cancellation notice (March 2025)-Considering future measures and policies (search for successor tenant or sale)

Revision of Rent and Contract Period(㎡)※（ ） Number of tenants
40,000.00(2)

Normal lease(2)

35,000.00

Fixed-term lease

The right side of the photograph shows one of
the 2 spots where the building was extended.

30,000.00

Pre-extension

25,000.00

(1)

(1)

20,000.00

Post-extension(planned)

Increase

8,340.98㎡

9,002.40㎡

661.42㎡（＋7.9％）

62.16％／200％

66.59％／200％（＋4.43％）

Floor-area ratio(Note4)(current/maximum allowed)

100.0

116.8

＋16.8Pt

Acquisition price (Note5)(Indexation pre-extension =
100)

100.0

125.5

＋25.5Pt

15,000.00
10,000.00
5,000.00
0.00

(1)

(1)

(1)
(0)

(0) (0)(0)(1)

Total leasable area(Note3)19

4. Operating results for the FP16 ended Jan 2024 (7)- Hotels① ◆ Acquired 7 recently built hotel properties from the Sponsor Group at the best timing for taking in increase in accommodation demand (total
amount of 45.4 billion yen) (in Sep. 2023)◆ Received rents from the newly acquired 7 hotel properties which were 20.8% higher than forecast.

Operating results for Hotel<Status in FP16>

Actual and projected hotel rents(mn）・Total rent amount: 1,666 million yen / 12.9% higher than forecast

2,500

固定賃料
Fixed

・Variable rents: 903 million yen / 26.6% higher than forecast
・Hotel A: Closed due to effects of COVID-19/ Reopened in February 2024

1,500

<Assumptions for FP17 and onwards>

・Hotels held from before – A certain amount of variable rent is anticipated fromhotels with variable rent structures - Upside anticipated.

1,877
1,666

903

1067

1058

1,000

500

763

763

809

939

0

<Rent structure for the 7 newly acquired hotels>

FP16
Forecast
FP16 Actual
第16期予想第16期実績
For 7 newly acquired hotels ,contribution period was 5 months.
Full contribution from FP17 andonwards

SAR’s rent income of
the 7 hotels (Assets to be Acquired)

Variable rent

FP17
Forecast
第17期予想FP18
Forecast
第18期予想For the 7 newly acquired hotels, fixed
rent portion (minimum guarantee
portion) to increase from Sept. 2024.

◆ Actual rent income received from the hotel portfolio (16 properties in total) FP16 12.9%
higher than forecast (for variable rent 26.6% higher)

Variable rent = GOP x 85% - fixed rent

Rental income

1,476

Compared
to forecast
12.9%up713

・Newly acquired 7 properties – Assumed that operating status will improve towards
the latter half of FP17.

Expect further
improvement inhotel performance
1,997

2,000

- Rent was received as scheduled even during the closed period ・Hotel B: Ended the period used as facility for accepting mild symptom patientsOperating normally except for some portions.

Variable
変動賃料

Forecast
予想◆ For 7 newly acquired hotels (acquired in Sept. 2023), contribution period was 5
months.
◆ When actual rents received in FP16 from the newly acquired 7 hotels is recalculated
simply for 6 months, it exceeds the forecast for FP17. For the 7 newly acquired hotels,
fixed rent portion (minimum guarantee portion) to increase from Sep. 2024.

Fixed rent
Fixed rent (Total of 7 properties) = JPY approx. 50 mn / month(2023/9~2024/8)
JPY approx. 75 mn / month(2024/9 onward)

GOP（ Hotel Operating Conditions ）◆ Total rent amount is GOP×85%◆ It is assumed that improvement in operations of hotels will continue even in FP17 andthereafter.
It is assumed that a certain amount of variable rent will be received from hotels held frombefore with variable rent structures.

20

4. Operating results for the FP16 ended Jan 2024 (8)- Hotels② ◆ Although the various indices which are assumed for the business forecast of the 7 hotel properties acquired in September 2023 are anticipatedto improve to a certain extent compared to FP16, as the track record period is still short, the initial forecast figures at the time of acquisition has
been largely adopted.
◆ It has been confirmed that the recent situation is that various indices have outperformed the forecast figures.
FP16 Actual (for 5 month)
ADR：10,452 yen
RevPAR ：8,474 yen(yen）

13,000FP17 Forecast (vs FP16 Actual）
ADR：101.5％
RevPAR ：102.8％

FP18 Forecast (vs FP16 Actual）
ADR：103.9％
RevPAR ：109.2％
88.0%

ADR(forecast)
ADR（予算）ADR(forecast+ actual)
ADR（実績＋予測）
RevPAR(forecast)
RevPAR（予算）RevPAR(forecast+ actual)
RevPAR（実績＋予測）
Occupancyrate(forecast)(right)
稼働率（予算）【右軸】
Occupancyrate(actual【右軸】+ forecast)(right)
稼働率（実績＋予測）

12,000

86.0%

84.0%

Occupancy83.1%
11,00082.0%

ADR10,261 yen
10,000

80.0%

78.0%

9,000
RevPAR, 8,525 yen

76.0%
8,000
74.0%
7,000
72.0%
FP17

FP16

FP18

6,000

70.0%
2023/92023/10 2023/11 2023/12

2024/12024/22024/32024/42024/52024/62024/72024/82024/92024/10 2024/11 2024/12

2025/1※The total or average of the seven new hotel properties acquired in September 2023. (KOKO HOTEL Ginza 1-Chome, KOKO HOTEL Sapporo Ekimae, KOKO HOTEL Fukuoka Tenjin, KOKO HOTEL Hiroshima Ekimae,
KOKO HOTEL Kagoshima Tenmonkan, Fino Hotel Sapporo Odori, Best Western Plus Fukuoka Tenjin-Minami)

21

4. Operating results for the FP16 ended Jan 2024 (9)- Capex Control –◆ Implement strategic capital expenditures (expansion construction, etc.) related to internal growth measures in the FP15 and FP16 (planned)◆ Execute asset replacement in line with the timing of strategic capital expenditures and repair and maintenance expenses (obtain funds and gains
on sales)Capex予算
Capex
Forecast(Unit: thousand yen)

Depreciation costCapex実績
Capex
Actual

減価償却費（実績）(Forecast)

Strategic Capex＜Case Examples of Strategic Capex Investments＞

1,400,000＜FP16 Actual results＞
1,200,000◼ Construction work by lessor in connection with the
opening of "Lopia" at Shuroy Mall Chikushino

1,000,000

800,000<Case Examples of Strategic Capex Investments>⚫ Strategic Capex such as construction works which lead to future
revenue increases, increase in asset value, and improvement intenant satisfaction, taking into account investment efficiencies.
⚫ Building extension: Utilize unused FAR and increase rentablefloor space, in cases where revenue increase can be anticipatedand investment efficiency is believed to be high.
⚫ Residences: Renovations which involve changes to floor plans
which are determined to be able to achieve rent increases, andwhich are believed to have high investment efficiency.

◼ Funabashi High-Tech Park Factory I Expansion＜FP15 Actual results＞◼ Utilizing the gain on the sale, strategically implement
large-scale construction work ahead of schedule＜Capital Expenditures for the FP16＞
600,000

400,000

Suroy Mall Chikushino
Store area construction

77 million yen

Funabashi High-Tech Park Factory I
Expansion of Development Office Building andLaboratory Building

270 million yen＜Schedule of Capital Expenditures for the FP17＞

200,000

0
FP11
第11期
2021/72021年７月期

第12期
FP122022/12022年1月期

FP13
第13期
2022/72022年7月期

FP14
第14期
2023/1
2023年1月期

FP15
第15期
2023/72023年7月期

第16期
FP162024/1
2024年1月期

FP17
第17期
2024/72024年7月期

FP18
第18期
2025/1
2025年1月期

Higashi-Kobe Center Building
Elevator renewal construction

148 million yen

Hakata Station East Place
Renewal construction of common area

50 million yen(Unit: thousand yen)

Depreciation cost

FP10
Jan 2021
Actual628,354

FP11
Jul 2021
Actual
633,013FP12
Jan 2022
Actual682,245

FP13
Jul 2022
Actual
697,599

FP14
Jan 2023
Actual743,661

FP15
Jul 2023
Actual763,353

16FP
Jan 2024
Actual963,602

FP17
Jul 2024
Forecast
1,034,930

FP18
Jan 2025
Forecast
1,058,405

Capex Forecast

552,841

453,448507,750

520,543

628,409871,225

1,151,707

867,658884,892

Capex Actual

331,901

363,439424,722471,534

605,932

787,991

1,107,190――（Strategic Capex)(78,826)(54,321)(111,822)(131,701)(214,397)(424,296)(78,826)――

Capex Budget reduction rate
Capex ratio （Capex Actual／
Depreciation cost）
Repair cost（Actual／Forecast）
Number of Properties as of theend of FP

40.0%

19.8%

16.4%

9.4%

3.6%

9.6%

3.9%

―

―

52.8%

57.4%

62.3%

67.6％

81.5%

103.2%

114.9%――

181,949

220,204

181,998

255,201

173,257

308,817319,629

228,014238,334

53

53

60

60

63

62

71

71

71

22

4. Operating results for the FP16 ended Jan 2024 (10)- Financial standing ① -◆ Newly called upon 4 banks. To prepare for future rise in interest rates, plan the timing to fix interests while considering costs.
◆ Changed the “Financial Policy” section of the Management Guidelines taking into account the recent financing environment.

Financial Policy

Main financial indicators (※1）
FP15
Jul 2023

FP16
Jan 2024

As of Feb 29, 2024

LTV

46.3％

47.5％

-

Interest-- bearing debt balance

96,840 mn

123,140 mn

123,140 mn

Long-term debt ratio

100.0 ％

98.9 ％

98.9 ％

Average remaining period tomaturity

3.0 年

3.3 年

3.2 年

Average borrowing period

5.1 年

5.3 年

5.3 年

Average interest rate (※2)

0.80 ％

0.79 ％

0.79 ％

Fixed interest rate ratio

95.1 ％

70.8 ％

70.4％(※1) This describes the status including investment corporation bonds.
(※2) The interest rates shown take into consideration the effects of interest rate swaps (fixing of interest rates).

Diversification of repayment dates(as of Feb 29, 2024)
(mil）

Fixed
固定

14,000Floating
変動

Corporation Bonds
投資法人債

3,200

10,000
8,000

1,000

4,840 10,230

6,000
4,000
2,000

11,850
9,060

8,000

7,300

12,07011,215
8,750◆ In the past, the basic policy had been to fix interest rates from the perspective offinancial security; however, taking into account future interest rate fluctuation risk
including the recent trend towards increase in interest rates, the policy has beenchanged as follows.
While taking into account the status of the asset side of the balance sheet
and the future outlook of the financial environment, aim to maintain andimprove DPU, and control financing costs in a timely and appropriatemanner.
◆ No change to the policy aiming for diversification of lenders and diversification of
repayment dates.

Bank formation (as of Feb 29, 2024 after refinancing)
Ratio

LenderSumitomo Mitsui Banking

24.0%

1.2%

Mizuho Bank

18.6%

The Nishi-Nippon CityBank
The Bank of
Yokohama,Ltd.

SBI Shinsei Bank

13.8%

San-ju San Bank

0.8%

Sumitomo Mitsui Trust
Bank

11.7%

0.8%

0.8%

Lender

1,000

12,000◆ Changed the Financial Policy within the Amendment of the “Management
Guidelines”

Aozora Bank

9.4%

Resona Bank

6.3%

The Bank of Fukuoka

2.2%

Minato Bank

1.6%

The Kiyo Bank, Ltd

1.6%

The Juhachi-Shinwa
Bank, LtdThe Musashino Bank,
Ltd
Mizuho Trust &Banking
The Dai-ichi Life
Insurance
Fukoku Mutual Life
Insurance Company
The Yamagata Bank,Ltd

The Chiba Bank, Ltd

1.6%

Corporation Bonds

The Asahi Shinkin Bank

1.6%

9,700 9,790
7,050

5,085
3,000

0

Ratio

1.2%

0.8%

Interest-- bearing
debt balance

0.7%

123,140

0.4%

million yen

0.4%
0.4%

FP17 FP18 FP19 FP20 FP21 FP22 FP23 FP24 FP25 FP26 FP27 FP28 FP29 FP30

23

4. Operating results for the FP16 ended Jan 2024 (11)- Financial standing ② -◆ In FP16, borrowings were executed with floating interest rates, taking cost into account. / Going forward, timing to fix interest rates to beconsidered.
◆ Achieved increase in ratings from two rating agencies (JCR and R&I)

Borrowing results
repayment
Date of
Repayment

Refinancing repayment 2023/9/20

New borrowing

After FP16

Borrowingamount（mn）

Borrowing
Interest rates

Date of
Borrowingterm

Borrowingamount（mn）

―

―

―

―

―

―

―

―

―

―

Comments

5.0ｙ • Diversification of repayment dates

2023/9/1

1,300 Floating T+0.20％

1.0ｙ2023/9/1

9,730 Floating T+0.65％

5.5ｙBorrowing

―

―

―

―

―

2023/9/1

12,070 Floating T+0.80％

7.0ｙ

―

―

―

―

―

2023/12/1

3,200 Floating T+0.45％

3.5ｙ

500 Fixed 0.536% 3.5y Refinancing 2024/2/29

500 Floating T+0.55％

5.0ｙ

repayment 2024/2/29

Credit Ratings• Diversification of repayment dates• Invitation of 4 new banks• Lengthening of borrowing period anddiversification of repayment dates• Successful reduction of spread

Transition of LTV◼ Achieved rating increases during FP16 (from both 2 rating agencies).
◼ Against the background of rating improvements, continue to consider issuance ofinvestment corporation bonds.
◼ Going forward, we plan to aim for further rating improvements, and conduct stable
management.

Rating

49.0%
48.0%

47.5%

47.0%
47.3%
46.0%

Rating Agency

Japan Credit Rating Agency, Ltd.
(JCR)

term

4,840 Floating T+0.60%

4,840 Fixed 0.812% 5.0ｙ Refinancing 2023/9/20―

Interest rates

Before Change

After Change

45.0%Long-term Issuer RatingA (Stable)

Long-term Issuer Rating
A+ (Stable)

44.0%

Issuer Rating
A－ (Stable)

Issuer RatingA (Stable)

46.3%

43.0%
FP1 FP2 FP3 FP4 FP5 FP6 FP7 FP8 FP9 FP10 FP 11FP 12FP 13FP 14FP 15 FP16

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

24

5． Progression Status of Mid-Term Plan25

5． Progression Status of Mid-Term Plan (1)Progression Status of Mid-Term Plan
◆ Asset size in January 2024 through public offering: 243.8 billion yen (real estate, etc.: 71 properties, preferred securities: 1 deal),
other mezzanine loan claim investments: 2 deals◆ Assumed distribution per unit: 1,538 yen (distribution guidance per unit)

Mid-Term Plan （Target year FY2026）
Asset Size (Target): JPY

300 billion

Indicative number of properties 100

Distribution Per Unit (Target):

1,600 yen or more

Growth objective of 2% per annum or more

Progress status as of the end of Jan 2024 (FP16)
Assets Size
As of the end of January 2024

243.8 billion yen

Achievement rate ： 81％

Distributions Per Unit
FP18 Forecast

1,538 yenAmount to be achieved ： 62 yen

Future portfolio expansion and formulation policy:➢ Utilize the sponsor pipeline including development deals, andfind deals using the asset management company’s unique
network.
➢ As a comprehensive REIT, while taking into consideration thecurrent portfolio mix, aim for external growth through not only
properties for which first refusal rights are obtained, but also by
combining with other asset type properties.
➢ If the improvement of operational status of hotels and thecruising level can be confirmed, also eye the possibility tofurther increase the composition ratio of hotels.

Priority measures going forward:➢ Consideration of measures to improve earnings, such asredevelopment and expansion of owned properties➢ Cooperate with sub-sponsor (Nippon Kanzai Group)➢ Rebuild the property management system to suit the portfoliomix.
➢ Reduce costs leveraging on the economy of scale➢ Optimize repair costs/ capital expenditures.
➢ Improve distribution per unit through external growth, internal
growth.
26

5． Progression Status of Mid-Term Plan (2)SAR has Obtained Preferential Negotiation Rights for 12 Hotels Owned by Star Asia Group◆ As of the end of January 2024, Star Asia Group had 139.9 billion yen (total of most recent appraisal amounts) of properties under management.
◆SAR has obtained preferential negotiation rights for 12 hotels totaling JPY 58.1 bn

Portfolio owned by Star Asia Group (Note1)

Newly obtained preferential negotiation rights for 12 hotels<Properties owned by Star Asia Group (Total appraisal value(Note2))>
Hotel, 13.2%

Office, 14.0%

Logistics, 11.1%

Total appraisal
value(note1)

Other,
35.3%

139.9bn

Tokyo,
64.7%

KOKO HOTEL
Tsukiji Ginza

KOKO HOTEL
Nagoya Sakae

KOKO HOTEL
Osaka Shinsaibashi

KOKO HOTEL PremierKanazawa Korinbo

Residential, 61.7%（※）As of January 31, 2024. Excluding properties for which SAR has preferential negotiation rights, and deals
involving land for development or land under development, etc.。

◼ Star Asia Group has 139.9 billion yen of properties under management (excluding
assets for which SAR has obtained preferential negotiation rights)◼ Continuing to acquire properties, by leveraging on the strength of Star Asia Group
which constantly executes investment strategies reading ahead of the market.
◼ SAR is considering external growth, with Star Asia Group’s properties undermanagement as a pipeline.

KOKO HOTEL
Premier Kumamoto

KOKO HOTEL Residence KOKO HOTEL Residence
Asakusa Tawaramachi
Asakusa Kappabashi

MIMARU Tokyo Ginza
EAST< Preferential negotiating rights acquired Student Residence >■ HAKUSAN HOUSE■ KAMIKITA HOUSEMIMARU Tokyo
Ueno East◼ An international standard student residence for which Star Asia Group was involve in its
development.
◼ Provides ample common-use space to facilitate building among residents.
◼ Living expenses (utility fees etc.) are included in the rent.
◼ Staff are on-site 24 hours a day, and a concierge service is offered in multiple languages.

MONday Apart Premium
Nihonbashi

MONday Apart Premium
Ginza Shintomicho(GATE STAY Premium
Nihonbashi)(GATE STAY Premium
Ginza Shintomicho)

MONday Apart Premium
Ueno◼ Overview of the hotel portfolio with preferential negotiating rights✓ Number of properties: 12✓ Total number of guest rooms: 1,364✓ Total appraisal value: JPY 58.1 bn✓ Ratio operated by Polaris(Note2):
65.2%

27

5． Progression Status of Mid-Term Plan (3)Our Initiatives in the hotel business of Polaris Holdings (Star Asia Group)◆ As the operator of 8 hotel properties held by Star Asia Investment Corporation, it has generated maximum synergy effects.
◆ Together with Star Asia Group, pursuing "operations with an investment management perspective" to increase revenues and lower the breakeven point.

Polaris Holdings
Listed on
the Tokyo Stock ExchangeStandard Market
CODE： 3010
◆ Transparency and credibility of information as a listed company.
◆ As of the end of Feb 2024, it had signed management contracts for
48 hotel buildings, comprising 8,525 rooms (including hotels abroadand hotels for which management is expected).
◆ Operates multiple hotel brands including the main brand KOKO
Hotels.
◆ It has actively expanded the number of hotels under management
even during the COVID-19 pandemic, and realized revenue increase
and reduction of the break-even point, and its share price has showna steadily rising trend.

＜Share Price Trends＞
300.0

7 hotels acquiredby SAR
begins operations

Signed lease contract
with KOKO HotelNamba
held by SAR

250.0
200.0
150.0
100.0
50.0
March 1, 2021
2021年3月1日

March
1, 20222022年3月1日

March
1, 20232023年3月1日

February
29,, 2024
2024年2月末

Expanded number of hotels under management＜Transition of number of guest rooms in operation by contract type(operational basis)＞

+2.6
times

8,205

47

+2.5
times

19

3,109

March 31, 2020
ML Fixed Rent
Type

＜Transition of number of hotels under management by contract type(operational basis)＞

MC and ML Variable
Rent TypeMarch 31, 2024
Ownership

March 31, 2020
ML Fixed Rent
Type

March 31, 2024
MC and ML Variable Rent
Type

Ownership28

5． Progression Status of Mid-Term Plan (4)External environment recognition and near-term management policy◆ Environment recognition: Increase in management and operation costs due to continued inflation, interest rates are in rising phase. On theother hand, increase in rents are limited.
◆ SAR’s policy and measures: Focus on increasing rent amounts, expand exposure towards assets which are highly adaptable to inflation, andcontrol interest costs by combining use of floating interest rates.

External environment recognition and near-term management policy

AオフィスA賃料
Class Office rent
BオフィスB賃料
Class Office rent
TSE REITREIT
TSEJ-REIT全体借入れコスト(右軸）Borrowingcosts (J REIT)
10-yeargovernment bonds (right)
10年国債利回り(右軸）
TIBOR(3month) (right)
TIBOR3ヶ月(右軸）250.0%＜External environment
recognition＞
1.90%

1.70%

200.0%

Cost-push inflation
due to the weak yen

1.50%

1.30%

150.0%

1.10%

0.90%

100.0%

0.50%

50.0%

Increase in various
operating costs
Construction costs・
BM/PM Fee Insurance
premiums・Fixed assets
and city planning taxesetc.

Long-term interest raterising phase in Japan
Long-term interest rate
declining phase in the
U.S.

0.30%

0.10%

NA
2023年

2022年

2021年

2020年

2019年

2018年

2017年

2016年

2015年

2014年

2013年

2012年

2011年

2010年

2009年

2008年

2007年

2006年

2005年

2004年

2003年

2002年

(0.10%)

Implement rent
increases which wins
over inflation
Rent increaseamount rate

0.70%

2001年

＜Immediate Approach to Responding
to the External Environment＞

Inflation
rate>

rents growthrateincrease in> occupancy rate

Strength as adiversified REIT.
Expand exposure
towards assets which
rent increases can be
anticipated.

Considerspecific measures
being consciousof DPU growth rate.

Prepare a financial strategy
which is suitable for theearnings condition of theasset side.
Control interest costs
Borrow long-term In floating
rates for the time being.

※Borrowing costs per year calculated by dividing interest payments (PL) for the most recent 2 fiscal periods by the average balance of interest bearing debt for the same period.
※For 10-year government bonds and TIBOR (3 months), the past 1 year average has been used as of June 30 and December 31 of each year.
※Office rents have been indexed, taking Tokyo 23-ward A class rents in the latter half of 2001 as 100%.

29

5． Progression Status of Mid-Term Plan (5)Policies and measures etc. being conscious of capital costs◆ Management policies and measures pursuing DPU growth and aiming to maximize unitholders’ interests.
◆ Consider various policies and measures in accordance with the condition of the capital markets and real estate market.

Various policies and measures in accordance with the condition of the capital markets and real estate market.
Low

High

Acquireown investment units

Real estate priceSale of properties
including asset
replacements

Investment unit priceInternal growth bystrategic CAPEX

Property contributions from sponsors andsub-sponsors
External growth throughcapital increase

Mezzanine loan debt
investments

Acquire properties
using the bridge function of the sponsors andsub-sponsors

High<Basic Concept of Capital Increase by Public Offerings>•

Most important index: Growth of DPU•

Price level of investment units, dilution ratio•

Level of LTV•

Property to be acquired and implied CAP rate•

Acquire properties exceeding the implied CR.

•

Consider the above points carefully.

Low

Generate opportunities for external growth incooperation with the sponsors

Search for properties using
the Asset Manager’s own routes.
30

5． Progression Status of Mid-Term Plan (6)Utilization Policy of retained earnings◆ Leverage retained earnings including negative goodwill to (1) counteract temporary reductions in revenue (defensive use) and (2) handle issues (loss from removal of buildings,
rent downtime) with redevelopment, etc. of portfolio assets (offensive use), and maintain stable distributions

Retention of gains on
disposal through continuous
asset replacements

Negative goodwill
from merger

Total retained earnings: JPY 8.74 bn(As of the end of the FP16 ended 1/2024)

Use retained earnings to stabilize distributions
Defensive
Dealing with the temporary reductions in revenue
due to PO costs, the impact of COVID-19, etc.
FP15 Actual(ended 7/2023)
FP16 Actual(ended 1/2024)
FP17 Forecast(ending 7/2024)
FP18 Forecast(ending 1/2025)

Drawdown of retained
earnings

JPY Drawdown of retained
earnings

JPY 80 mn
Drawdown of retained
earnings

JPY 130 mn
Drawdown of retained
earnings

JPY 80 mn

Planning capital expenditures
which will directly connect toincrease in revenues

Offensive
Dealing with the redevelopment of portfolio assets, etc.
Examination ofredevelopment

Specificplanning / startof construction

Construction /completion

Postredevelopment
operation

DPU+JPY 37

BeforeAfter

DPU+JPY 55
DPU+JPY 37

Start ofredevelopment
Existing property

Redevelopment

Demolition of existing buildings /loss from removal of buildings

Stabilization of distributions per unit
through the use of retained earnings

Completion of
new buildings
New operation phase
Rent downtime during theredevelopment period

Stabilization of distributions
through the use of retained earnings
31

5． Progression Status of Mid-Term Plan (7)The continuous implementation of corporate action in pursuit of the maximization of unitholders’ interests◆ SAR has continuously implemented Active Management initiatives since IPO all designed with the intent of maximizing unitholder value.
As a result of these strategies, SAR unit price has consistently outperformed the TSE REIT index since.

Active management and investment unit price performance since listing
1st follow-on
offering
March 17, 2017

IPO
April 20, 2016
1st asset
replacement
December 5, 2016

2nd asset
replacement
February 28, 2017

2nd follow-on
offering
January 12, 2018

3rd asset
replacement
July 23, 2018

3rd follow-on
offering
August 21, 2018

4th asset
replacement
August 21, 2018

5th asset
replacement
March 2, 2020

MergerAugust 1, 2020
6th asset
replacement
October 5,2020

4th follow-on
offering
August 2, 2021
7th asset
replacement
November 30,2020

5th follow-on
offering
August 1 2022

8th asset
replacement
February 1,2023

6th follow-on
offering
August 7 2023

9th asset
replacement
March 16,2023

10th asset
replacement
August 7,2023(yen)
80,000.0(mn)160,000

Market computerization(right)
時価総額(右）(left)SAR(左)

70,000.0

60,000.02021/8/2,¥60,000

TSE REIT(左)(left)

2018/1/12,¥59,150
2017/3/17,¥50,4502022/8/1,¥59,300

2023/8/7,¥58,200

2018/8/21,¥53,750140,000

120,000

50,000.0

100,000

40,000.0

80,00030,000.0

60,00020,000.0

40,00010,000.0

20,000

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

032

6．Initiatives on ESG

33

6. Initiatives on ESG (1)Recent Topics regarding ESG Initiatives and ESG Promotion System◆ As a part of ESG related initiatives, participated in the 2023 GRESB Real Estate Assessment (Note 1), and acquired 3Stars / Green Star
◆ In order to further enhance ESG related initiatives, strengthen cooperation with the sub-sponsors (Nippon Kanzai and Tokyo Capital Management)

ESG promotion system◼ The Asset Manager’s ESG promotion system centered on the Sustainability
Promotion Division (Primarily involving E (Environment) matters)
The Asset Manager’s
Sustainability
Promotion Division
Executive officer incharge of sustainability
General Manager of
Sustainability
Tetsuya Makino■1 staff added to the Sustainability Promotion
Division Expanded the team structure■ESG initiatives• Setting of goals primarily focused on E
(Environment), process management, andresult verification• Participation in GRESB Real Estate
Assessment, and acquired 3 Star
■Optimization of capital expenditures andrepairs expenses• Examination of capital expenditures andrepair expenses• Selection of equipment and materials withconsideration for impact on revenue
pursuant to ESG Policy and Sustainablepurchase policy

Nippon Kanzai(Sub sponsor)
Supports SAR to achieve numerical targets(provides advice related to developing various
data and measures to reduce environmental
burdens)<E (Environment) related support>

GRESB Real Estate Assesｓment＜GRESB Real Estate Assesｓment＞◼ Star Asia Investment Corporation (“SAR”) participated in the GRESB Real
Estate Assessment in 2023, and acquired “3 Stars” rating.
◼ Furthermore, SAR obtained the “Green Star” which indicates that SAR is aparticipant which excels in both the “Management Component” which assesses
the policy and organization structure for promoting ESG as well as the“Performance Component” which assesses environmental performance andtenant engagement of properties owned.
◼ SAR also received the highest “A Level” for the GRESB Public Disclosure,which assesses the width of our ESG disclosure.

■New Business & Corporate Branding
Dept.
• Institution with certification for CASBEE• Environment-related consulting services■East Japan Engineering Management
Center■West Japan Engineering Management
Center• Energy-related services• Environmental assessment services

Tokyo Capital Management (Sub sponsor)
TCM helps developing long-term repair plans for SAR’s portfolio
assets together with Nippon Kanzai

Aim to achieve E (Environment) related goals＜Initiatives on GRESB Real Estate Assesｓment ＞
Develop and organize data, led by the Sustainability Promotion Division
and with the cooperation of Nippon Kanzai Group who is a sub-sponsor.
We recognize that the purpose is not to receive high evaluation itself, butthat it is important to make efforts towards achieving a better
environment, a better society, and building a better governance structure.
34

6. Initiatives on ESG (2)E (Environment) related Numerical Goals and their Achievement Status◆ While total energy consumption increased in 2022 due to the recovery of hotel occupancy rates, the energy consumption intensity fell 14.7% measured against
the base year
◆ We will aim for continued reduction by considering introducing highly efficient equipment and low carbon equipment at times of facilities renovation and renewal

E (Environment) Related Numerical Objectives and Actual Performance
GHG(Note 1)
Monitoring item
GHG emissions

t-CO2

Base year(2019)
23,154.05

Scope 1t-CO2

1,968.71

1,129.44

1,672.17

1,953.58-

Scope 2t-CO221,185.34

15,675.06

18,458.26

18,635.41-

t-CO/m2

0.057120.040570.040970.04051

0.05140-▲ 29.0%▲ 28.3％▲29.1％▲ 10.0%

Crude oil equivalent
Unit
monitoring item
Crude oil equivalent usage amountkL
Crude oil equivalent usage per unit kL/m2
Reduction rate%

Base year(2019)
11,220.81
0.02768-

2020
Actual9,156.34
0.02210▲ 20.1%2021
Actual11,234.60
0.02286▲ 17.4%2022
ActualTarget year
(2030)
12,001.80
0.02491
0.02362▲14.7％ ▲ 10.0%

Energy consumption
monitoring item
Energy consumption
Energy consumption per unit
Reduction rate

Base year(2019)
44,560.98
0.10992-

2020
Actual36,362.39
0.08778▲ 20.1%2021
Actual
44,615.75
0.09080▲ 17.4%2022
Actual

GHG emissions intensity(Note 2)
Reduction rate

Water consumption
monitoring item
Clean water usage
Clean water usage intensity
Reduction rate
Waste
monitoring item
Waste emissions
Coverage rate
Waste emissions intensity
Reduction rate

Unit

%

Unit
MWh
MWh/m2
%
Unit
m3
m3/m2
%
Unit
t
%
t/m2
%

2020
Actual
16,804.50

2021
Actual20,130.43

2022
ActualTarget year
(2030)
20,588.99

Target year
(2030)
47,662.51
0.09893
0.09379▲14.7％ ▲ 10.0%

Base year
2020
2021
2022
Target year
(2019)
ActualActualActual(2030)
329,687.35 220,847.18 255,933.91 334,463.31-0.8133
0.53310.52090.8133≦0.6581▲ 34.4%▲ 36.0%±0%▲19.1％
Base year(2019)
2,693.27
69.1%
9.61
-

2020
Actual
1,656.50
65.1%
6.14▲ 36.1%2021
Actual3,164.05
70.4%
9.14▲ 4.9%

Goal: 10% of reduction frombase year by 2030
Reduction rate: 29.1%

Goal: 10% of reduction frombase year by 2030
Reduction rate: 14.7%

2022
ActualTarget year
(2030)
3,825.29
79.6％≦ 9.61
9.46
±0%
▲1.6％

35

6. Initiatives on ESG (3)Initiatives for E (Environment) and S (Society)◆ Given the environmental certification obtained for 7 properties (of which 2 properties are changes from other certifications), the current certification ratio is43.9%.
◆ As an initiative for S (Society), a tenant satisfaction survey has been conducted. Considered ways to reflect the results of the survey in management andoperations.

Receipt of environmental certification (as of Jan 31, 2023) and goals◆ Signing of green lease contracts

Obtained
Property name

Asset type

Total floor area

Ratio
(Note 1)

★★★

DBJ
Green
Building
Certification★★

Baraki Logistics

Logistics

12,471.50 ㎡

Honmachibashi Tower

Office15,407.83 ㎡

Urban Park Tokiwadai
Koen

Residence

15,708.08 ㎡

Urban Park Mitsuike Koen

Residence

10,918.37 ㎡

Iwatsuki Logistics

Logistics

29,729.72 ㎡

Urban Center Shinjuku

Office7,624.66 ㎡

Funabashi Hi – Teck FactryⅠ(※）

Logistics

576.00 ㎡

★★★★★

BELS
Certification★★★★

(Note 3)★★★

★★

Fino Hotel Sapporo Odori

Hotel3,854.01 ㎡

Base Western Plus Fukuoka Tenjin-minami

Hotel7,322.03 ㎡

KOKO HOTEL Hiroshima
EkimaeHotel

5,370.75 ㎡

KOKO HOTEL Kagoshima
Tenmonkan

Hotel4,622.48 ㎡

Urban Center Hakata

Office3,566.56 ㎡

Urban Center Hakata

Residence

1,201.39 ㎡

Urban Park
Miyamaedaira (Note 5)

Logistics

2,039.17 ㎡

Higashi-Kobe Center Building

Office25,740.46 ㎡

CASBEE
Real Estate
Certification

Seiyu Minakuchi

Retail31,829.71 ㎡

Urban Park Daikanyama

Residence

8,261.29 ㎡(Note 4)

Rank ALa Park Kishiwada

Retail

65,663.02 ㎡

abeno nini (retail)

Retail

4,866.82 ㎡

合 計

Goals：50％（2026）（※） Only the expansion portion was acquired.

162 tenants

256,773.85 ㎡

Total leased area

190,682.87㎡

Initiatives for S (Society)◆Initiatives for employees
4.9 ％Rank S◼ Established policy for green lease agreement and added green lease clauses
for 112 office tenants, 32 retail tenants, 7 residence tenant, 8 logistics tenants,
and 3 hotel tenants.（38.1 % of leasable area）◼ SAR plans to add the same clause to other properties

15.7 ％(Note 2)★

Signing of green lease contracts (Note 6)◼ Diversity & inclusion (one director and one Auditor are female )◼ Conducts employee satisfaction surveys regularly◼ Introduced various systems in order to care for the health and comfortableness of
employees• Promotion of teleworking and staggered commuting, superflex• Maternity leave, childcare leave, nursing care leave, and reduced working hours◆Initiatives on own Property
23.3 ％

43.9 ％◼ La Park Kishiwada
As a part of regional contribution initiatives,
provided resting spots at the Danjiri
festival.

◆Tenant satisfaction surveys◼ Tenant satisfaction surveys are conducted periodically inorder to enhance tenant satisfaction36

6. Initiatives on ESG (4)Governance ①

Same boat investment

Calculation Formula for Asset Management Fees

◼ Aligning the interests of the Sponsor Group with those of the unitholders
by holding 6.9% of the investment units of the Sponsor Group (as of Jan
31, 2024)◼ Members of the Asset Manager also hold investment units◼ Aim to further align interests with those of unitholders and increase the linkage torevenues from properties under management.

Star Asia Group(as of Jan 31, 2024)◼ Star Asia Group has continued to holdinvestment units since the time of listing, whichstrong supports the growth of SAR.
◼ Star Asia Group’s founders also as individuals
hold investment units.

＜Founder of Star Asia＞

Number of units
held in same-boat
investment:

164.316 units

Calculation Formula

FP15

FP16

Management fees I

Total valuation amount of managed assets x
0.2% (upper limit)

143,722
thousand yen

175,906
thousand yen

Management fees II

NOI × 7.5% (upper limit)

271,363 thousand yen

332,520 thousand yen

Acquisition fees

Acquisition price × 1.0％ (upper limit) ※19,025 thousand yen

254,733 thousand yen

Transfer fee

Assignment price× 1.0％ (upper limit) ※11,500 thousand yen

31,150 thousand yen

Merger fee

Valuation amount of held assets× 1.0％
(upper limit) ※－－※： 0.5% if SAR transact with its interested parties.

Ownership:

Decision-making process◼ Implement decision-making with high transparency, compliant with laws and regulations

6.9％◼ Maintain high ethical standards and execute operations as a steward of investors’ funds

Department
ProposalCompliance officer

Management team of the Asset Manager◼ Hold SAR’s units through the employee unit purchase plan
◼ Indicates a high level of commitment by the management team to thegrowth of SAR.
◼ Star Asia Group commences cumulative investment-units investment
program.
◼ Akiko Kanno, Director and General Manager of the Finance Management
Department, was approved as SAR’s substitute executive officer at the
October 2023 unitholders’ meeting

Review and approval

ReturnInvestment Committee (including external members)
Review and resolution

RejectCompliance Committee (including external members)
Review and resolution

RejectBoard of directors
Review and resolution

RejectItems that do not need to be
discussed at the Compliance
Committee

SAR’s Committee
Review and approval

Disapprove

Items that need to be discussed at
the Compliance Committee37

6. Initiatives on ESG (5)Governance ②Star Asia Group’s Code of Conduct
Star Asia, the sponsor of Star Asia Investment Corporation, is a non-listed independent investment management group which invests mainly inJapanese real estate-related assets and whose main goal is supplying investors with excellent returns
Star Asia Investment Corporation and Star Asia shall share the same long-term vision in accordance with the Star Asia Group’s Code of Conduct,shall be a leading Real estate investment management group in Japan and shall persistently endeavor to continue to be such
The Code of Conduct is as follows:1

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

5

Collaborative
andCooperative Culture

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

2

Highest EthicalStandards andIntegrity

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

6

Adaptability

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

3

Creativity

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

7

Meritocracy

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

4

Respect for Others

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

8Endless PursuitofExcellence

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

38

7．Appendix

39

About Star Asia Group (1)Founded by Taro Masuyama and Malcolm F. MacLean IV in 2006, Star Asia Group is an independent fund management company focusedon Japanese real estate and real estate related assets (i.e., debt, equity, property, securitized assets, corporations, etc.)

Taro Masuyama
Co-Founder andManaging Partner

Malcolm F. MacLean IV
Co-Founder andManaging Partner➢

Since its founding, Star Asia Group has invested over JPY1,24 trillion and has current assets under management of around
JPY488.4 billion1.

➢

Star Asia Group has 672 officers and employees2 with over 55 professionals in finance, investment and real estate area in primarilyin Japan and a few in the United States➢Star Asia Group’s partners and employees share a long-term perspective and always operate under our Guiding Principles which
continuously drive the group to become and remain one of the leading real estate investment management firms in Japan➢

Star Asia Group’s strong track record and long-term partnership approach with our investors have been integral in attracting
significant capital from sophisticated global investors, including large U.S. university endowments and foundations, Japanese andEuropean pension funds, U.S. and Asia based family offices as well as other global real estate investors➢

Star Asia Group is committed to its disciplined Investment Philosophy with a single goal of meeting and exceeding our client’s
expectations for the mandates we are given

Star Asia Group
Asset manager
Listed J-REITStar Asia
Investment
Management Co.,Ltd.

Star Asia
Investment
Corporation

Private FundManagement
Star Asia
Management:• Registered
Investment Advisor
with the US SEC• Manages private
funds including its
flagship Star Asia
Japan Special
Situations funds• Sponsors andsupports other group
entities providing
strategic andtechnical advice aswell as leadershipresources

Asset Management

Property Development

Star Asia Asset Advisors:• Registered for Financial
Instruments Business (2nd
Financial Instruments,
Investment Advisory, Agency
and Investment Management*)
with Kanto Financial Bureau

Star Asia Sogo
Kaihatsu:• Provides pipeline for
GSASA, SAIC andPolaris Holdings(*) Invest Management Businessregistered as of December 2021

Purpose Built Student
Accommodation
Operation

Publicly Traded
Hospitality Operation &Development Company

GSA Star Asia:• 50/50 JV with GSA
Group, a pioneer in
PBSA and operates
in 8 countries
including UK• Develops andoperates PBSA in
Japan

Polaris Holdings (TSE:3010):• Sponsored by Star
Asia Group• Develops andoperates hospitality
properties with
33hotels and 6,104
rooms currently undermanagement acrossJapan (as of
September 2023)• Provides asset management,
property management andbrokerages services• Warehouses properties for
SAIC
SAGL Advisors K.K.
• JV with Global
Link Management Inc., anasset management company.

Credit Investment

K.K. Star Asia
Finance:• Provide mezzanine
non-recource financeto 3rd party sponsored
SPCs.
• Registered Money
Lender and a Tax
QII.

(*) Registered Investment Advisory(June 2021)

Star Asia Group with expanding business provides strong support to SAR

40

Investment Philosophy of Star Asia Group (2)The Group intends to strictly adhere to its investment philosophy, and to meet the expectations of investors andcontinue to exceed such expectations. This is our largest objective
1

Research Focus

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

4

Specialization

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

2

Market Inefficiencies

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

5

Risk Control

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

3

Maximizing and Unlocking
Value

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

6

Dependability, Transparency
and Decisive Action

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

41

Status of Unitholders
at the End of 16th Fiscal Period ended January 2024
List of major unitholders (Top 10)

Number of investment units by attribute: Total 2,372,000 units
End of 15FP

End of 16FP

Unitholder nameCategory
No. ofinvestment units

No. ofinvestment units

Ratio

Ratio

Individual

478,20224.9%

534,363

22.5%

Financial institution

616,94432.1%

916,63638.6%

85,433

4.4%

70,436

3.0%

677,48835.3%

783,553

33.0%

63,622

3.3%

67,0122.8%

1,921,689

100.0%

2,372,000

100.0%

Domestic
corporation
Foreign
Securities company

Total

Number ofinvestment
units

Holdingratio

1

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

350,404

14.8%

2

Custody Bank of Japan, Ltd.
(Trust Account)342,856

14.5%

3

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

109,985

4.6%

4

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

97,500

4.1%

5Star Asia Capital Ⅰ LLC

40,969

1.7%

5Star Asia Capital Ⅱ LLC

40,969

1.7%

5Star Asia Capital Ⅲ LLC

40,969

1.7%

5Star Asia Capital Ⅳ LLC

40,969

1.7%

9STATE STREET BANK AND TRUSTCOMPANY 505001

40,765

1.7%

10

JP Morgan Chase Bank 385771

34,9861.5%

1,140,372

48. 1%

Number of unitholders by attribute: Total 30,415
End of 15FP

End of 16FP

Category
No. ofunitholders

No. ofunitholders

Ratio

Ratio

27,652

97.3%

29,574

97.2%

47

0.2%

48

0.2%

Domestic
corporation

377

1.3%

428

1.4%

Foreign

313

1.1%

343

1.1%

22

0.1%

22

0.1%

28,411100.0%

30,415100.0%

Individual
Financial institution

Securities company

Total

Total
Star Asia Capital Ⅰ～ⅣLLC are Sponsor Group.

42

Change in business results(Unit: million yen)

Lease business revenue
Office rent
Retail rent
Residence rent

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

11FP (ended Jul.
2021) actual

12FP (ended Jan.
2022) actual

13FP (ended Jul.
2022) actual

14FP (ended Jan.
2023) actual

15FP (ended Jul.
2023) actual

16FP (ended Jan.
2024) forecast
(※1)

5,536
1,807
790
1,023
909
424
582

5,890
1,900
842
1,152
910
425
660

6,060
1,974
847
1,215
910
426
686

6,463
2,036
1,038
1,225
914
537
710

6,503
2,077
1,048
1,227
869
581
700

7,468
2,103
1,001
1,205
877
1,476
804

7,524
2,088
1,012
1,183
877
1,666
695

56
(14)
11
(21)
0
189
(109)

1,556

1,629

1,796

1,812

1,981

2,126

1,982

(143)

3,980
633
3,347

4,261
682
3,579

4,263
697
3,565

4,650
743
3,907

4,521
763
3,758

5,342
953
4,388

5,542
963
4,578

199
10
189

-

-

-

-

414

380

374

(5)

16FP (ended Jan.
2024) actualComparison with
forecast

24
-

22
46

28
-

22
-

22
-

12
-

33
-

21
-

-

-

-

-

6

31

31

0

560
3,087
1
571
2,517
2,517
0
2,516
1,478 yen
1,787 yen

546
3,047
2
489
2,560
2,560
0
2,559
1,476 yen
1,820 yen

580
3,349
1
568
2,782
2,782
0
2,781
1,491 yen
1,834 yen

595
3,606
1
534
3,073
3,073
0
3,073
1,586 yen
1,780 yen

702
4,110
814
3,296
4,110
0

708
4,309
1
782
3,528
4,309
0

6
198
1
(31)
231
198
-

FFO per unit

532
2,838
3
434
2,407
2,407
0
2,407
1,462 yen
1,815 yen

3,296
1,513 yen
1,631 yen

3,527
1,524 yen
1,735 yen

231
11 yen104 yen

AFFO per unit

1,598 yen

1,550 yen

1,556 yen

1,519 yen

1,370 yen

1,145 yen

1,268 yen

123 yen

9,095

8,967

8,886

8,802

8,828

8,535

8,741

205

TK distribution
Income from securities lending
fees
SGA
Operating income

Non-operating income
Non-operating expenses
Ordinary income

Income before income taxes
taxes
Net income
Cash distribution per unit

Balance of Internal reserves(※2)（※1) announced in the 15th FP financial briefing report (2023/9/13).（※2）The balance of internal reserves is calculated as the total of the temporary difference adjustment reserve plus unappropriated retained
earnings as of the end of the period, minus distributions of profits for the period.

43

Balance Sheets(Unit: thousand yen)
(Unit: thousand yen)
15th fiscal period(As of July 31, 2023)

15th fiscal period(As of July 31, 2023)

16th fiscal period(As of January 31, 2024)

16th fiscal period(As of January 31, 2024)

Deferred assets

AssetsCurrent assets
Cash and deposits

3,262,429

2,466,478

Cash and deposits in trust

8,525,306

9,186,964

Operating accounts receivable

139,180

319,557

Prepaid expenses

197,986

276,610-

1,245,234

14,462

18,498Consumption taxes receivable

OthersTotal current assets

12,139,365

13,513,345

Non-current assets
Property, plant and equipment
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Buildings in trust

114
(114)

114
(114)

0

0

56,821,886

72,991,822

Accumulated depreciation(6,898,692)

Buildings in trust, net

49,923,193

65,256,177

25,74437,679

Accumulated depreciation(7,577)(8,703)Structures in trust, net

18,166

Machinery and equipment in trust

251,570

Structures in trust(7,735,645)

28,975306,175

Investment corporation bond issuance costs

10,543

9,522

Investment unit issuance costs

36,75865,149Total deferred assets
Total assets

Current liabilities
Operating accounts payable
Short-term borrowings

13,285,000
664,966

Accrued expenses

75,324

96,918

Income taxes payable
Accrued consumption taxes
Advances received

OthersTotal current liabilities

Leasehold and guarantee deposits received

98,96918,825106,034,702

132,027,707

66,123,367

89,316,185

25,132,218

25,132,218

Reserve for temporary difference adjustment

8,535,586

8,446,674

Total voluntary reserve

8,535,586

8,446,674

Accumulated depreciation

Total non-current liabilities

Tools, furniture and fixtures in trust, net

90,69995,470Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
SurplusIntangible assets
Leasehold rights in trust

4,082,300

Total intangible assets

4,082,300

6,251,893
6,251,893

Investments and other assets
1,588,015

1,588,015

Investment securities

740,000

1,170,000

Long-term prepaid expenses

331,220542,728
10,239Total non-current assets-

114,592,137(54,677)

Total investments and other assets

4,053
5,915,288

88,563,401

150,147

Others

4,179
5,965,643
93,578(48,732)

Leasehold and guarantee deposits in trust

17,435,570
1,000,000

139,432

Leasehold and guarantee deposits

26,846

17,471,301

107,555,000

Tools, furniture and fixtures in trust

Investments in other securities of subsidiaries and associates

1,028,917

35,5051,000,000

Others235,397,221

1,236,897

81,500,000

Asset retirement obligations

190,129,480

48,408Long-term borrowings(58,216)

Total property, plant and equipment

605

252,695

Investment corporation bonds

247,958

170

605

Non-current liabilities(44,740)

169,768,470

1,300,000

534,593

206,829

33,095983,908

14,340,000

Machinery and equipment in trust, net

139,857,495

995,681

Accounts payable - others

Current portion of long-term borrowings

Accumulated depreciation

Construction in progress in trust

74,672
259,155,332

Liabilities

Leasehold and guarantee deposits received in trust

Land in trust

47,301
209,259,165

10,359191,122

263,988343,2282,860,717

3,918,199

197,072,498

245,567,314

Unitholders’ capital surplus
Voluntary reserve

Unappropriated retained earnings (undisposed loss)

3,340,372

3,909,364

Total surplus

37,008,177

37,488,257

Total unitholders’ equity

103,131,545

126,804,443

Deferred gains or losses on hedges

92,917323,181

Total valuation and translation adjustments

92,917323,181

103,224,463

127,127,624

Valuation and translation adjustments

Total net assets
Total liabilities and net assets

209,259,165

44
259,155,332
44

Statement of Income(Unit: thousand yen)
15th fiscal period
From: February 1, 2023
To: July 31, 2023

16th fiscal period
From: August 1, 2023
To: January 31, 2024

Operating revenue
6,048,231

7,077,860

Other lease business revenue

454,964

447,056

Gain on sale of real estate

414,166

374,516

Other revenue

29,56465,436

6,946,926

7,964,869

Rental revenue

Total operating revenue
Operating expenses

2,744,572

2,946,506

Asset management fee

418,486

512,727

Asset custody and administrative service fees

42,39548,711

Directors’ compensations

2,400

2,400

Other operating expenses

132,242

144,769

Total operating expenses

3,340,096

3,655,114

3,606,830

4,309,754

Expenses related to rent business

Operating income
Non-operating income

53

58

1,046

1,583

Subsidy income

504－

Interest on refund

315

－

1,918

1,642

377,649

463,491

Interest income
Reversal of unpaid distribution

Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds

Borrowing related expenses

3,500

3,500

140,125

294,089

Amortization of investment corporation bond issuance costs

1,020

1,020

Amortization of investment unit issuance costs

12,611

20,812534,906

782,913

Ordinary income

3,073,841

3,528,484

Income before income taxes

Total non-operating expenses

3,073,841

3,528,484

Income taxes - current

605

605

Total income taxes

605

605

3,073,236

3,527,879

Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

267,135

381,485

3,340,372

3,909,364

45

Portfolio List (as of Jan 31, 2024)< Property>
Acquisition
Investment
Appraisal
Price
ratio
value (mill)(mill)(%)

Appraisal
NOI yield(%)(※)

Property nameLocation

Acquisition
Investment
Appraisal
Price
ratio
value (mill)(mill)(%)

Appraisal
NOI yield(%)(※)

Property nameLocation

Minami-Azabu Shibuya Building

Minato-ku, Tokyo

2,973

3,110

1.2

4.7

Urban Park Azabujuban

Minato-ku, Tokyo

2,045

2,950

0.8

4.4

Honmachibashi Tower

Osaka-shi, Osaka

6,065

7,100

2.5

5.0

Urban Park Daikanyama

Shibuya-ku, Tokyo

6,315

10,100

2.6

4.8

Nishi-Shinjuku Matsuya Building

Shibuya-ku, Tokyo

1,763

2,740

0.7

6.9

Urban Park Namba

Osaka-shi, Osaka

1,490

1,540

0.6

5.0

Urban Center Shibuya East

Shibuya-ku, Tokyo

2,042

3,290

0.8

5.6

Urban Park Kashiwa

Kashiwa-shi, Chiba

1,186

1,210

0.5

4.8

4.9

Urban Park Ryokuchi-koen

1,550

1,730

0.6

5.6

1,810

2,180

0.7

4.8

Urban Park Gyotoku

Suita-shi, Osaka
Yokohama-shi,
Kanagawa
Ichikawa-shi, Chiba

1,430

1,620

0.6

4.7

Shiroi Logiman

Shiroi-shi, Chiba

2,470

2,520

1.0

5.7

Yokohama-shi,
Kanagawa
Fukuoka-shi,
Fukuoka

6,320

Nihonbashi Hamacho Park Building
Amusement Media Gakuin
HonkanHigashi Kobe Center Building
Amusement Media Gakuin
ShinkanUrban Center Shinjuku

Chuo-ku, Tokyo

1,450

1,510

0.6

4.3

Shibuya-ku, Tokyo

2,580

2,810

1.1

4.0

Urban Park Sekime

Osaka-shi, Osaka

2,150

2,460

0.9

5.3

Kobe-shi, Hyogo

7,600

7,530

3.1

5.3

Urban Park Imazato

Osaka-shi, Osaka

993

1,110

0.4

5.5

Shibuya-ku, Tokyo

1,020

1,230

0.4

4.0

Urban Park Yoyogi

1,740

1,990

0.7

3.6

Shinjuku-ku, Tokyo

11,20011,700

4.6

3.6

3,506

4,190

1.4

5.5

Urban Center Kanda Suda cho

Chiyoda-ku, Tokyo

5,350

5,440

2.2

3.7

3,160

3,690

1.3

5.4

Urban Center Kanda

Chiyoda-ku, Tokyo

4,590

4,600

1.9

3.7

Takadanobaba AccessShinjyuku-ku, Tokyo

3,990

3,920

1.6

3.8

1,115

1,310

0.5

4.6

2,019

2,100

0.8

4.7

1,060

1,250

0.4

4.9

1,113

1,190

0.5

4.8

743

1,010

0.3

5.0

Urban Center Yokohama West
Hakata-eki East Place

2,286

8,420
3,290

2.6
0.9

Urban Park Ichigao

6.6

Residence

OfficeAzabu Amerex Building

Minato-ku, Tokyo

2,780

2,890

1.1

3.7

Hiei-Kudan Building

Chiyoda-ku, Tokyo

2,400

2,400

1.0

3.6

Urban Park Miyamaedaira

Undab Center Shin-Yokohama

Yokohama-shi,
Kanagawa

2,300

2,570

0.9

5.0

Urban Park Tsurumi

The Portal Akihabara

Chiyoda-ku, Tokyo

1,510

1,490

0.6

3.8

Urban Park Mitaka

Shibuya-ku, Tokyo
Yokohama-shi,
Kanagawa
Yokohama-shi,
Kanagawa
Sumida-ku, Tokyo
Kawasaki-shi,
Kanagawa
Kawasaki-shi,
Kanagawa
Yokohama-shi,
Kanagawa
Mitaka-shi, Tokyo

Tachikawa-shi,Tokyo
Fukuoka-shi,
FukuokaFujisawa-shi,
Kanagawa

1,804

2,050

0.7

5.2

Urban Park Kamata MinamiⅠ

Ota-ku, Tokyo

641

879

0.3

5.1

Urban Park Kamata MinamiⅡ

Ota-ku, Tokyo

1,375

1,770

0.6

5.1

Urban Park Umejima

Adachi-ku, Tokyo

1,032

1,150

0.4

4.1

38,94347,94916.0

5.0

Urban Center Tachikawa
Urban Center Hakata
Urban Center Fujisawa
Office Subtotal

Urban Park Tokiwadai Koen
Urban Park Mitsuike Koen
Urban Park Ryogoku
Urban Park Mizonokuchi

2,870

3,280

1.2

4.3

2,054

2,200

0.8

5.6

74,947

83,57030.7

4.5

Iwatsuki Logistics

Saitama-shi, Saitama

6,942

7,650

2.8

4.8

Residence Subtotal

Kishiwada-shi, Osaka

5,400

5,170

2.2

7.1

Yokohama Logistics

Yokohama-shi,
Kanagawa

3,560

4,260

1.5

5.6

Suroy Mall Chikushino

Chikushino-shi,
Fukuoka

6,550

6,580

2.7

5.9

Funabashi Logistics

Funabashi-shi, Chiba

7,875

8,770

3.2

5.2

Seiyu Minakuchi

Koka-shi, Shiga

3,320

3,320

1.4

7.4

Baraki Logistics

Ichikawa-shi, Chiba

4,700

5,220

1.9

4.1

Tokoyozawa Logistics

Tokorozawa-shi,
Saitama

1,300

1,550

0.5

5.8

Funabashi Nishiura Logistics Ⅱ

Funabashi-shi, Chiba

821

907

0.3

7.1

Matsubushi Logistics

Kita-Katsushika-gun,
Saitama

2,755

3,300

1.1

5.7

Funabashi Hi-Tech Park Ⅰ

Funabashi-shi, Chiba

1,997

2,200

0.8

7.1

29,95033,857

12.3

5.2

BAGUS Ikebukuro West

Toshima-ku, Tokyo

abeno nini (Retail)Osaka-shi, Osaka
Retail Subtotal

2,984

3,500

1.2

4.1

9,500

10,5003.9

4.2

27,75429,070

11.4

5.5

Logistics

Retail

La Park Kishiwada

Logistics Subtotal(※)“Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of the property in the real estate appraisal report, rounded to the second decimal place.

46

Portfolio List (as of Jan 31, 2024)< Property>
Property nameLocation

Acquisition
Investment
AppraisalPrice
0 ratiovalue (mill)(mill)(%)

Appraisal
NOI yield(%)(※1)

Period-end appraisal value：

266,696 million yen

Total book value：

241,648 million yen

Period-end unrealized gains (losses)：

25,047 million yen

R&B Hotel Umeda East

Osaka-shi, Osaka

2,069

2,320

0.8

5.5

Smile Hotel Namba

Osaka-shi, Osaka

1,750

1,490

0.7

4.3

REMBRANDT STYLE Tokyo Nishikasai

Edogawa-ku, Tokyo
Yokohama-shi,
Kanagawa
Fukuoka-shi,
Fukuoka

3,827

3,460

1.6

4.1

3,248

3,160

1.3

4.5

Net assets per unit：

53,595 yen

1,970

1,990

0.8

4.6

Unrealized gains per unit：

10,559 yen

GLANSIT AKIHABARA

Chiyoda-ku, Tokyo

2,500

2,440

1.0

3.9

REMBRANDT STYLE Tokyo Nishikasai
GrandeNAV per unit (*1)：

62,630 yen

Edogawa-ku, Tokyo

3,180

3,110

1.3

4.0

KOKO HOTEL Osaka Namba

Osaka-shi, Osaka

2,000

1,560

0.8

3.7

P/NAV per (*2)

：

0.92

abeno nini (Hotel)

Osaka-shi, Osaka

3,600

3,850

1.5

4.8

KOKO HOTEL Ginza 1-Chome

Chuo-ku, Tokyo
Sapporo-shi,
Hokkaido
Fukuoka-shi, Fukuoka
Hiroshima-shi,
Hiroshima
Kagoshima-shi,
Kagoshima
Sapporo-shi,
Hokkaido
Fukuoka-shi, Fukuoka

17,80019,100

7.3

4.0

6,700

7,080

2.7

4.9

5,000

5,410

2.1

4.9

4,100

4,320

1.7

5.2

3,800

4,280

1.6

6.1

4,200

4,270

1.7

4.6

3,800

4,410

1.6

6.7

Hotel Subtotal

69,54472,250

28.5

4.7

Total

241,138

266,696

98.9

4.8

Best Western Yokohama
The BREAKFAST HOTEL Fukuoka Tenjin

Hotel

KOKO HOTEL Sapporo Ekimae
KOKO HOTEL Fukuoka Tenjin
KOKO HOTEL Hiroshima Ekimae
KOKO HOTEL Kagoshima Tenmonkan
Fino Hotel Sapporo OdoriBest Western Plus Fukuoka Tenjin-minami(*1) NAV per unit = (Period-end net assets + Period-end unrealized gains – Total cash
distribution) / Total number of investment units issued and outstanding(*2) P/NAV per ＝Investment unit price / NAV per unit (Investment unit price on January 31,
2024: 57,800 yen)

< Mezzanine loan debt investment / Preferred equity security>No.

MEZ-07

MEZ-08

TK-03

Name of the security（asset overview）

Type

Star Asia Mezzanine Loan Debt Investment
Series 7

Corporate bondStar Asia Mezzanine Loan Debt Investment
Series 8 A
Star Asia Mezzanine Loan Debt Investment
Series 8 B
GSA JP Project 1 Tokutei Mokuteki Kaisha
Preferred Equity Securities

Trust beneficiaryinterest
Trust beneficiaryinterest
Preferred equity
security

合 計Interest rate (※2)

AcquisitionPrice(mill)

Investment
ratio
(%)

Underlying asset, etc.
Asset nameBase rate +5.0%

400

Quintessa Hotel Tokyo Haneda
0.2
Comic & Books

Base rate +5.3%

430

0.2
Centurion Hotel Grand Akasaka

Location
Ota-ku,Tokyo
Minato-ku,
Tokyo

0.1

Minato-ku,
Tokyo

1,562

0.6 HAKUSAN HOUSE

Bunkyo-ku,
Tokyo

2,732

1.1

Base rate +7.3%

340（Lending Fee：
4.0%）

※1：“Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of the property in the real estate appraisal report, rounded to the second decimal place.
※2 The base interest rate : JBA 3-month yen TIBOR

47

Balance of Payments of Individual Properties (1)（Unit : Thousand yen）
Asset Type
Property nameAcquisition priceAppraisal value
Structure/Floors
Location
Lot area
Total floor areas
Construction completion

OFC-01
Minami-Azabu Shibuya
Building

Honmachibashi Tower

OFC-04
Nishi-Shinjuku Matsuya
Building

OFC-06
Urban Center Shibuya
East

OFC-08
Urban Center YokohamaWest

OFC-09Hakata-eki East Place

2,973 million yen
3,110 million yen
SRC B1F/7F
Minato-ku, Tokyo

6,065 million yen
7,100 million yen
S and SRC B1F/21F
Osaka-shi, Osaka

1,763 million yen
2,740 million yen
SRC B1F/9F
Shibuya-ku, Tokyo

2,042 million yen
3,290 million yen
S 6F
Shibuya-ku, Tokyo

6,320 million yen
8,420 million yen
S,SRC and RC B2F/12F
Yokohama-shi, Kanagawa

2,286 million yen
3,290 million yen
SRC 9F
Fukuoka-shi, Fukuoka

766.11㎡ (Leasehold)1,274.37㎡

589.94㎡(surface right)

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

1,129.86㎡

4,137.21㎡
June 15, 1993

15,407.83㎡
February 8, 2010

5,117.80㎡
May 28, 1987

1,982.86㎡
July 31, 1993

12,353.83㎡
November 25, 1994

6,243.13㎡
February 24, 1986

FP15

FP16

FP15

FP16

FP15
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee

OFC-03

FP16

FP15

FP16

FP15

FP16

FP15

FP16

99,36899,582249,203249,511

120,379

122,357

74,59974,455

231,766

232,635

118,913

114,087

90,62392,251

215,411

216,316

108,488

109,154

71,16071,163

210,792

211,707

107,143

104,209

8,745

7,330

33,79233,195

11,89013,203

3,438

3,291

20,97420,928

11,7709,877

28,35629,01877,19982,21934,50434,875

14,352

18,65956,14764,50625,07832,023

6,081

6,020

15,194

15,197

6,977

7,257

4,936

5,294

15,618

14,944

8,352

9,292

Utilities expenses

5,793

6,149

31,83828,008

8,790

9,796

2,275

2,422

17,43821,376

6,302

8,594

Taxes and dues

4,483

4,480

20,01920,019

3,401

3,401

4,685

4,681

16,365

16,365

7,715

7,711

Repair expenses

672

1,199

7,680

16,047

1,967

1,314

1,795

1,098

5,040

10,353

1,766

1,810

Trust fee

388

388

400

400

400

400

350

350

400

400

400

400

Insurance premium

147

156

456

487

164

174

57

61

477

504

213

227

Other expenses

10,78910,624

1,610

2,060

12,803

12,531

251

4,751

807

562

328

3,988

NOI

71,01270,563172,004

167,291

85,87487,48260,24655,795

175,619

168,129

93,83482,063

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

13,941

14,01745,54945,782

10,813

11,093

3,986

3,996

31,014

31,64912,91913,07657,07056,545

126,455

121,509

75,061

76,38856,26051,799144,605

136,479

80,91568,987

1,728

7,287

6,077

20,307

7,263

15,232

408

-

7,464

43,508

4,764

8,712

NCF
Period-end book value(million yen)

69,284

63,275

165,927

146,984

78,611

72,24959,83855,795

168,154

124,62189,06973,351

2,968

2,961

5,556

5,531

1,799

1,803

2,085

2,081

6,270

6,282

2,417

2,413

48

Balance of Payments of Individual Properties (2)（Unit : Thousand yen）
Asset Type
Property name

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

OFC-13
Amusement Media Gakuin
Shinkan

OFC-14
Urban Center Shinjuku

OFC-15
Urban Center
Kanda Suda-cho

Acquisition price

1,450 million yen

2,580 million yen

7,600 million yen

1,020 million yen

11,200 million yen

5,350 million yen

Appraisal value

1,510 million yen

2,810 million yen

7,530 million yen

1,230 million yen

11,700 million yen

5,440 million yen

Structure/Floors

SRC 11FSRC and S B1F/8F

S and SRC 14F

RC ７F

SRC B1F/10F

SRC B1F/10F

Location

Chuo-ku, Tokyo

Shibuya-ku, Tokyo

Kobe-shi, Hyogo

Shibuya-ku, Tokyo

Shinjuku-ku, Tokyo

Chiyoda-ku, Tokyo

Lot area

319.04㎡Number derived by multiplying theratio of holdings）
2,384.03㎡Number derived by multiplying
the ratio of holdings）

433.21㎡

8,488.11㎡

203.43㎡

886.93㎡

590.72㎡

1,892.18㎡

25,740.46㎡

913.71㎡

7,624.66㎡

4,994.70㎡

July 13, 1992

November 2, 1994

January 6, 1992

January 25, 1999

March 31, 1989

October 28, 1991

Total floor areas
Construction completion

FP15
Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue
Total operating expenses
from real estate leasing

FP16

FP15

FP16

FP15

FP16

FP15

FP16

FP15

FP16

FP15

FP16

45,12652,089321,893

327,805

198,113203,719

140,958

141,51245,12652,089283,414290,004

184,896

191,055

135,273

135,466--

38,47937,80013,217

12,663

5,684

6,046

17,52913,472

142,937

124,476

84,53562,87635,58536,808

Management fee

801

885

23,132

24,60818,394

21,47011,753

12,500Utilities expenses

91-

47,21140,163

9,476

9,521

6,108

5,828

Taxes and dues

4,510

4,510

29,857

29,84922,77922,793

11,457

11,453

Repair expenses-

312

15,52816,51919,732

7,056

5,050

6,126

Trust fee

400

400

400

400

650

350

650

350

Insurance premium

172

184

934

985

283

299

208

219

11,553

7,179

25,872

11,94913,218

1,385

358

329

NOI

27,596

38,61652,20650,884

178,956

203,329

20,587

19,568113,578

140,842

105,372

104,703

Depreciation

3,061

3,137

4,290

4,653

44,79150,509

1,676

1,706

19,00022,008

9,190

9,777

Operating income (loss)
from real estate leasing

24,53535,47947,915

46,231

134,164

152,820

18,911

17,861

94,577

118,833

96,182

94,926

Capital expenditures

2,709

-

6,542

2,005

117,396

139,640-

3,777

108,90346,221

19,067

5,106

NCF

24,887

38,61645,663

48,87961,55963,68820,587

15,7904,674

94,62086,304

99,597

Period-end book value(million yen)

1,449

1,445

2,577

2,575

7,734

7,995

1,032

1,034

11,415

11,439

5,348

5,344

Other expenses

（※）

（※）

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

（※）

（※）

49

Balance of Payments of Individual Properties (3)（Unit : Thousand yen）
Asset Type
Property name

OFC-16
Urban Center
Kanda Tsukasamachi

OFC-17

OFC-18OFC-19

Takadanobaba Access

Azabu Amerex Building

Hiei Kudan Building

OFC-20Urban Center
Shin-Yokohama

OFC-21The Portal Akihabara

Acquisition price

4,590 million yen

3,990 million yen

2,780 million yen

2,400 million yen

2,300 million yen

1,510 million yen

Appraisal value

4,600 million yen

3,920 million yen

2,890 million yen

2,400 million yen

2,570 million yen

1,490 million yen

Structure/Floors

SRC B1F/8F

S and SRC B1F/14F

SRC B1F/8F

SRC and S B1F/11F

S and SRC B1F/11F

SRC and S 8F

Location

Chiyoda-ku, Tokyo

Shinjuku-ku, Tokyo

Minato-ku, Tokyo

Chiyoda-ku, Tokyo

Yokohama-shi, Kanagawa

Chiyoda-ku, Tokyo

Lot area

709.52㎡

930.70㎡

601.71㎡

700.59㎡

184.76㎡

5,356.99㎡

1,010.67㎡

March 17, 1992

May 31, 2002

Total floor areas
Construction completion

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

4,629.27㎡

5,757.14㎡

2,909.80㎡

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

January 20, 1988

January 14, 1994

June 30, 1988

September 17, 1991

FP15

FP16

FP15

FP16

115,699

103,932

107,193

107,81772,91874,012

69,31970,03487,471

87,28933,46428,518110,501

98,983

98,124

99,891

68,887

69,333

68,53470,03479,70679,80532,16322,892

5,198

4,949

9,068

7,926

4,031

4,678

785

-

7,765

7,484

1,301

5,626

27,29024,98538,73145,686

26,64425,527

24,65624,296

31,22530,684

9,277

13,177

9,876
6,120
7,917
1,498
700
200
977
88,40813,334

9,637
5,354
7,917
1,015
400
212
449
78,946
13,49313,085
8,691
9,547
1,696
600
219
4,890
68,461
11,044

14,5697,883
9,552
11,028
400
231
2,021
62,131
11,716

7,527
3,051
8,257
6,465
775
103
463
46,274
4,028

7,480
3,093
8,256
5,810
375
109
401
48,484
4,064

3,564
28
7,206
800
183
12,873
44,663
4,027

3,566
25
7,205
424
500
194
12,37945,737
4,027

9,943
7,047
8,094
4,829
650
190
471
56,245
14,782

9,542
7,066
8,093
4,684
350
200
747
56,605
16,207

2,702
1,177
1,642
205
600
39
2,910
24,186
3,897

2,510
1,171
1,642
3,113
400
41
4,297
15,341
3,989

75,07465,45357,41650,41442,24644,41940,636

41,71041,46340,397

20,28911,352

3,310
85,097

3,823
75,123

12,95755,504

31,86730,263879
45,394

7,936
40,54744,66345,73753,3202,925

30,34026,264

2,553
21,633850
14,491

4,728

4,719

4,005

4,026

2,783

2,787

2,386

2,382

2,467

2,481

1,502

1,499

FP15

FP16

FP15

FP16

FP15

FP16

FP15

FP16

50

Balance of Payments of Individual Properties (4)Asset Type
Property name

OFC-22
Urban Center Tachikawa

OFC-23
Urban Center Hakata（Unit : Thousand yen）
OFC-24
Urban Center Fujisawa

Acquisition price

1,804 million yen

2,870 million yen

2,054 million yen

Appraisal value

2,050 million yen

3,280 million yen

2,200 million yen

Structure/Floors

RC and S B1F/6F

S 8F

SRC B1F/8F

Location

Tachikawa-shi, Tokyo

Fukuoka-shi, Fukuoka

Fujisawa-shi, Kanagawa

Lot area

964.80㎡

656.72㎡

1,005.52㎡

4,659.20㎡
May 30, 1990

3,566.56㎡
August 27, 2020

4,392.71㎡
April 9, 1991

Total floor areas
Construction completion

FP15
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Taxes and dues
Repair expenses
Trust fee
Insurance premium
Other expenses

FP16

FP15

FP16

FP15

FP16

51,351

62,214

77,04380,08881,57080,56647,23458,60977,04376,72773,50673,506

4,116

3,604

-

3,360

8,063

7,060

32,08619,994

12,413

19,59539,451

19,970

5,002
3,511
4,557
13,636
400
139
4,837
19,265
6,454

6,032
3,736
4,549
4,373
400
150
753
42,219
8,362

5,188
6,424
99
400
119
181
64,63015,281

5,673
3,851
6,424
57
400
128
3,060
60,493
15,281

4,918
7,609
4,185
21,761400
144
431
42,118
6,257

4,694
6,533
4,185
3,341
400
154
661
60,595
7,666

35,861

52,92954,100(11,981)

8,934
51,660

2,195

2,196

NOI
Depreciation
Operating income (loss)
12,81033,85749,34845,211from real estate leasing
Capital expenditures
58,30438,945
NCF(39,039)
3,273
64,63060,493
Period-end book value
1,904
1,935
2,839
2,824
(million yen)(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

51

Balance of Payments of Individual Properties (5)（Unit : Thousand yen）
RTL-06abeno nini (Retail)

Asset Type
Property name

RTL-01
LaPark Kishiwada

RTL-02
Suroy Mall Chikushino

RTL-03
Seiyu Minakuchi

RTL-05
BAGUS Ikebukuro West

Acquisition price5,400 million yen

6,550 million yen

3,320 million yen

2,984 million yen

9,500 million yen

Appraisal value

5,170 million yen

6,580 million yen

3,320 million yen

3,500 million yen

10,500 million yen

Structure/Floors

RC and S 3F

S 1F (A, CD, EFG, HIJ, KLM, O,
QRSTUY, V, W and X buliding)
S 2F (B and P building)

S 4F

S and RC B2F/8F

RC B2F/24F

Chikushino-shi, Fukuoka

Koka-shi, Shiga

Toshima-ku, Tokyo

Osaka-shi, Osaka

264.15㎡

633.90㎡

1,497.45㎡
November 20, 1992

4,866.82㎡
January 31, 2012

FP15

FP15

FP16

Location
Lot area
Total floor areas
Construction completion

Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Taxes and dues
Repair expenses
Trust fee
Insurance premium
Other expenses

Kishiwada-shi, Osaka
39,779.74㎡
65,663.02㎡
August 30, 1994

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

31,028.62㎡
June 22, 2007

31,829.71㎡
May 31, 1999

FP15

FP16

FP15

FP16

528,144525,138

258,010

270,794

221,344219,340

414,658

414,095

254,700

222,869

221,344219,340

113,485

111,043

3,309

47,924--

347,730

319,618

80,94699,301

28,02831,641

1,200
8,253
32
350
155
21,649187,698
16,639118,104
143,934
44,04420,2022,150
1,164
18,128
180,41329,612

113,245
128,668
44,193
12,2941,850
1,224
18,143
205,519
31,194

24,771
5,142
20,787
5,627
650
611
23,355177,063
23,32826,126
9,568
20,80333,507
500
643
8,150
171,493
24,432

NOI
Depreciation
Operating income (loss)
150,801
174,325
153,734
147,060
from real estate leasing
Capital expenditures
55,35577,222
2,521
60,599NCF
125,058
128,297
174,541
110,893
Period-end book value
5,499
5,545
6,406
6,442
(million yen)(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

FP15

FP16

（※）

FP16

（※）

（※）

（※）

121,329
26,592

127,072
26,83360,654
2,316

61,734
2,341

1,200
8,254
350
145
18,078
193,315
16,63994,736100,238

58,33759,393

176,676

171,058

9,435
111,894

12,608114,464

1,106
59,547

61,734

193,315

187,698

3,203

3,189

3,000

2,998

9,572

9,555

52

Balance of Payments of Individual Properties (6)（Unit : Thousand yen）
RSC-10Urban Park Ichigao

Asset Type
Property name

RSC-01
Urban Park Azabujuban

RSC-02
Urban Park Daikanyama

RSC-05
Urban Park Namba

RSC-07
Urban Park Kashiwa

RSC-08
Urban Park Ryokuchi-koen

Acquisition priceAppraisal value

2,045 million yen
2,950 million yen

6,315 million yen
10,100 million yen

1,490 million yen
1,540 million yen

1,186 million yen
1,210 million yen

1,550 million yen
1,730 million yen

Structure/Floors

SRC B1F/12F

Existing building : RC B1F/3F
Extensin building : RC B1F/9F

RC 14FSRC B1F/8F

Apartment house: RC 8F
Parking: RC 3F

RC SF B1F/8F

Location

Minato-ku, Tokyo

Shibuya-ku, Tokyo

Osaka-shi, Osaka

Kashiwa-shi, Chiba

Suita-shi, Osaka

Yokohama-shi, Kanagawa

Lot area

417.67㎡

2,469.06㎡

670.39㎡

1,597.85㎡

2,804.56㎡

1,758.84㎡

Total floor areas
Construction completion

2,564.94㎡

8,261.29㎡

2,776.87㎡

4,243.71㎡

5,854.64㎡

5,243.85㎡

November 29, 1999

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

January 9, 2013

August 28, 1997

March 10,1989

July 10, 1998

FP15
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee

1,810 million yen
2,180 million yen

FP16

FP15

FP16

FP15

FP16

FP15

FP16

FP15

FP16

FP15

FP16

57,63259,594201,243

200,432

45,672

46,64739,291

39,046

60,73160,01660,07458,35956,102

55,973

194,689

191,60244,916

46,24937,77238,32957,35956,97957,728

57,103

1,529

3,620

6,553

8,829

756

398

1,518

717

3,372

3,037

2,346

1,256

10,912

13,31731,98434,397

14,46014,295

9,861

7,225

15,271

16,021

12,706

14,013

2,211

2,407

10,291

10,229

3,328

2,950

2,473

1,916

2,558

2,523

3,612

2,973

Utilities expenses

705

608

2,971

3,340

431

327

627

503

2,627

2,426

1,473

1,209

Taxes and dues

2,995

2,996

12,211

12,211

2,892

2,892

2,959

2,956

3,594

3,592

3,962

3,961

Repair expenses

2,919

4,289

2,683

4,696

2,780

4,097

2,197

787

3,960

4,218

2,104

5,009

Trust fee
Insurance premium

350

350

350

350

350

350

350

350

350

350

400

400

72

77

237

252

83

88

108

116

159

169

144

152

Other expenses

1,658

2,588

3,238

3,318

4,595

3,589

1,144

596

2,020

2,741

1,010

306

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

46,71946,276

169,259

166,034

31,21132,35229,43031,82045,46043,99447,36844,346

5,214

5,289

12,981

13,180

8,021

8,044

7,662

7,670

8,758

8,923

6,293

6,367

41,50540,986

156,277

152,853

23,18924,307

21,76724,15036,70135,071

41,07437,978

3,315

9,073

4,041

11,233

1,353

-

135

847

8,520

754

2,048

4,183

NCF
Period-end book value(million yen)

43,40437,202

165,217

154,800

29,85832,352

29,29430,97336,94043,23945,31940,163

2,062

2,065

6,330

6,328

1,469

1,461

1,209

1,202

1,580

1,572

1,922

1,920

53

Balance of Payments of Individual Properties (7)Asset Type

（Unit : Thousand yen）
RSC-16
Urban Park
Tokiwadai Koen

RSC-11

RSC-12

RSC-13

RSC-14

RSC-15

Property nameUrban Park Gyotoku

Shiroi Logiman

Urban Park Sekime

Urban Park Imazato

Urban Park Yoyogi

Acquisition price

1,430 million yen

2,470 million yen

2,150 million yen

993 million yen

1,740 million yen

3,506 million yen

Appraisal value

1,620 million yen

2,520 million yen

2,460 million yen

1,110 million yen

1,990 million yen

4,190 million yen

Structure/Floors

SRC 10F

RC 13F

SRC 15F

RC 10F

RC 8F

RC 5F

Location

Ichikawa-shi, Chiba

Shiroi-shi, Chiba

Osaka-shi, Osaka

Osaka-shi, Osaka

Shibuya-ku, Tokyo

Yokohama-shi, Kanagawa

Lot area

1,122.57㎡

2,346.39㎡

1,803.70㎡

464.09㎡

12,544.61㎡

Total floor areas
Construction completion

3,397.95㎡

11,485.06㎡ （Number derived bymultiplying the ratio of holdings）
22,448.08㎡ （Number derived bymultiplying the ratio of holdings）

March 1, 1995

May 9, 1995

FP15
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee

FP16

FP15

FP16

8,190.11㎡

4,862.83㎡

1,418.03㎡

15,708.08㎡

August 18, 1989

December 20, 1991

September 4, 2017

Feb 17, 1994

FP15

FP15

FP15

FP16

FP16

FP16

FP15

FP16

37,816

39,566

141,678

143,832

88,07785,09739,31637,49739,87145,959146,106

148,263

36,06337,937

134,474

137,163

85,40582,774

38,66437,03539,00541,781

138,712

142,521

1,753

1,629

7,204

6,669

2,672

2,322

652

461

866

4,177

7,394

5,742

9,573

10,134

69,155

67,112

26,52026,28813,14917,709

8,838

8,544

53,52841,578

11,860

2,054

2,056

6,081

6,238

9,989

9,743

3,817

4,647

2,273

2,325

13,297

Utilities expenses

1,030

1,021

71

49

2,645

1,989

334

277

333

312

1,260

1,382

Taxes and dues

2,192

2,192

13,913

13,910

5,302

5,295

3,202

3,194

2,033

2,033

10,766

10,762

Repair expenses

2,132

2,623

16,42913,535

5,189

6,554

3,480

7,752

922

1,151

20,03912,322Trust fee
Insurance premium

400

400

1,050

750

775

375

775

375

600

400

400

400

95

101

807

852

281

296

142

150

49

52

411

434

Other expenses

1,668

1,739

30,80031,776

2,337

2,032

1,397

1,312

2,626

2,268

7,353

4,415

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

28,24329,431

72,52376,72061,55658,80926,166

19,78831,03237,414

92,578106,684

4,411

4,508

19,392

19,453

13,75913,895

5,352

5,475

4,393

4,393

13,911

15,087

23,832

24,92253,131

57,267

47,79744,914

20,814

14,313

26,63933,021

78,666

91,596

1,533

1,768

1,263

985

3,111

6,603

567

5,958

-

-

25,590

7,776

NCF
Period-end book value(million yen)

26,71027,663

71,26075,73458,44552,20525,59913,82931,03237,414

66,987

98,907

1,500

1,497

2,361

2,342

2,194

2,187

965

965

1,713

1,709

3,642

3,635

54

Balance of Payments of Individual Properties (8)Asset Type
Property nameAcquisition priceAppraisal value

RSC-17
Urban Park
Mitsuike Koen

3,160 million yen
3,690 million yen

Structure/Floors（Unit : Thousand yen）
RSC-22

RSC-18

RSC-19

RSC-20

RSC-21

Urban Park Ryogoku

Urban Park Mizonokuchi

Urban Park Miyamaedaira

Urban Park Tsurumi

Urban Park Mitaka

1,115 million yen
1,310 million yen

2,019 million yen
2,100 million yen

1,060 million yen
1,250 million yen

1,113 million yen
1,190 million yen

743 million yen
1,010 million yen

RC 6F

SRC 9FRC B1F/5F

S 3F

RC 6F

S 3F

Yokohama-shi, Kanagawa
10,216.95㎡

Sumida-ku, Tokyo
669.98㎡

Kawasaki-shi, Kanagawa
2,624.51㎡

Kawasaki-shi, Kanagawa
1,239.53㎡

Yokohama-shi, Kanagawa
2,172.70㎡

Mitaka-shi, Tokyo
947.92㎡

Total floor areas

10,918.37㎡

2,351.42㎡

5,029.52㎡

2,039.17㎡

3,169.13㎡

1,201.39㎡

Construction completion

March 24, 1992

October 31, 1997

August 23, 1988

June 10, 2021

February 17, 1994

June 8, 2023

Location
Lot area

Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Taxes and dues
Repair expenses
Trust fee
Insurance premium
Other expenses

NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value(million yen)

FP15

FP16

FP15

FP16

127,538

128,014

36,73739,726

63,57064,26732,976

33,838-2,083

120,428

122,366

35,88936,51859,09362,33630,814

31,791

-

2,083

7,109

5,647

848

3,208

4,477

1,930

2,162

2,047

-

-

42,39442,087

9,503

6,756

28,351

21,373

8,330

7,766

-

3,241

10,9891,098
8,796
14,101
400
327
6,680
85,144
12,62911,542880
8,795
11,042
400
345
9,080
85,926
13,026

3,165
441
1,880
2,729
400
72
814
27,233
2,612

2,581
377
1,880
602
400
78
836
32,970
2,678

4,038
708
3,466
10,360
400
148
9,228
35,218
6,681

4,390
607
3,466
10,099
400
159
2,249
42,894
7,135

1,684
47
1,605
1,237
400
51
3,304
24,646
4,527

1,454
48
1,605
1,147
400
55
3,055
26,072
4,533

325
50
4
291
28
2,540
(1,157)2,796

72,51572,89924,62130,291

28,53735,75920,11912,65372,491

5,916
80,0093,925
23,30832,97017,42017,79815,73027,164

3,284

3,277

1,148

1,146

2,104

2,113

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

FP15

FP16

FP15

FP16

FP15

（※）

FP16

（※）

FP15

FP16

25,6882,768

29,2902,777-

21,53822,91926,512-(3,953)396
24,25026,072

25,688

1,558
27,731-(1,157)

1,091

1,087

1,146

1,145

-

778

55

Balance of Payments of Individual Properties (9)（Unit : Thousand yen）
Asset Type
Property nameAcquisition priceAppraisal value

RSC-23
Urban Park Kamata
MinamiⅠ

RSC-24
Urban Park Kamata
MinamiⅡ

641 million yen
879 million yen

1,375 million yen
1,770 million yen

Structure/Floors
Location
Lot area

Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Taxes and dues
Repair expenses
Trust fee
Insurance premium
Other expenses

NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value(million yen)

Urban Park Umejima

1,032 million yen
1,150 million yen

RC 5F

RC 6F

RC 5F

Ota-ku, Tokyo
502.47㎡

Ota-ku, Tokyo
1,031.39㎡

Adachi-ku, Tokyo
770.37㎡

1,239.35㎡

2,323.83㎡

1,805.78㎡

September 29, 2022

September 25, 2023

October 23, 2023

FP15

FP15

FP15

Total floor areas
Construction completion

RSC-25

FP16

FP16

FP16

-

7,464

-

244

-

832

-

7,197

-

244

-

832

-

267

-

-

-

-

-

1,542

-

14,826

-

1,940

-

389
37
8
297
116
12
681
5,922
1,107

-

558
60
8
116
23
14,059(14,581)
2,254

-

341
70
8
116
17
1,387
(1,108)
1,710

-

4,815

-

(16,836)-(2,818)

-

5,922

-

(14,581)-407(1,515)

-

677

-

1,441

-

1,086

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

56

Balance of Payments of Individual Properties (10)Asset Type

（Unit : Thousand yen）
LGC-07
Funabashi Nishiura
Logistics Ⅱ

LGC-01

LGC-02

LGC-03

LGC-04

LGC-05

Property nameIwatsuki Logistics

Yokohama Logistics

Funabashi Logistics

Baraki Logistics

Tokorozawa Logistics

Acquisition priceAppraisal value

6,942 million yen
7,650 million yen

3,560 million yen
4,260 million yen

7,875 million yen
8,770 million yen

4,700 million yen
5,220 million yen

1,300 million yen
1,550 million yen

821 million yen
907 million yen

Structure/Floors

S 5F

RC 8F

Building 1: S 8F
Building 2: RC 5F

RC and S 5F

Office: S 2F
Warehouse: S 2F

Warehouse: S 4F
Factory: S 1F Office: S 3F

Location

Saitama-shi, Saitama

Yokohama-shi, Kanagawa

Funabashi-shi, Chiba

Ichikawa-shi, Chiba

Tokorozawa-shi, Saitama

Funabashi-shi, Chiba

Lot area

15,623.14㎡

Total floor areas

29,729.72㎡

10,565.95㎡
18,387.89㎡(including 256.15

19,858.00㎡
38,871.45㎡(two buildings㎡ break areas etc.)

combined)

October 1, 1994

1: September 25, 1992
2: August 5, 1997

Construction completion

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

October 29, 2014
FP15

FP16

200,080

FP15

FP15

FP16

200,318

265,877

267,529

187,713

187,718

251,102

251,461

12,367

12,60014,774

16,06835,12734,852

67,20567,019

（※）

FP16

（※）

6,240.96㎡

8,645.63㎡

3,964.00㎡

12,471.50㎡

5,994.75㎡

6,316.32㎡

August 14, 2015

April 30, 1999

W arehouse: Mar. 20, 1991 Plant:
May 15, 1972 Office: May 13, 1986

FP15

FP16

FP15

FP16

FP15

FP16

（※）

（※）

（※）

（※）

（※）

（※）

7,219

5,831

11,775

12,541

Utilities expenses

12,367

12,60015,024

16,297

Taxes and dues

13,54813,547

22,14622,153

Repair expenses

144

2,157

17,136

14,977

Trust fee
Insurance premium

350

350

400

400

346

365

499

527

1,151

-

223

120

NOI

164,953

165,465

94,64090,248

198,671

200,510

69,28078,081

37,23637,172

28,796

22,727

Depreciation
Operating income (loss)
from real estate leasing

46,87946,942

19,84520,47029,70430,587

15,78415,806

6,087

6,091

4,620

4,641

118,074

118,523

74,79569,777

168,967

169,92253,49562,274

31,14831,081

24,17518,086

-

7,409

1,182

44,361

30,52147,827

-

2,961

1,848

-

730

-

164,953
158,056
93,45845,886
Period-end book value
6,327
6,288
3,637
3,661
(million yen)(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

168,150

152,683

69,28075,11935,38837,172

28,06522,727

7,714

7,732

4,550

4,537

1,344

1,338

843

839

Other expenses

Capital expenditures
NCF

57

Balance of Payments of Individual Properties (11)Asset Type

（Unit : Thousand yen）
LGC-09LGC-08Property name

Matsubushi Logistics

Funabashi Hi-Tech ParkⅠ

Acquisition priceAppraisal value
Structure/Floors

2,755 million yen
3,300 million yen
RC 3F
Kita-Katsushika-gun,
Saitama
11,580.65㎡
19,833.47㎡

1,997 million yen
2,200 million yen
S 2F

Location
Lot area
Total floor areas
Construction completion
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee

March 31, 1997

Funabashi-shi, Chiba
13,420.44㎡
9,002.40㎡
May 19, 2003

FP15

FP16

FP15

FP16

（※）

（※）

（※）

（※）

Utilities expenses
Taxes and dues
Repair expenses
Trust fee
Insurance premium
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures

79,34379,44548,42942,833

17,19420,020

5,737

7,064

62,14859,42442,69235,768

78,10439,026-289,378

NCF
Period-end book value(million yen)

1,238

40,41848,429(246,545)

2,723

2,742

1,675

1,957

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

58

Balance of Payments of Individual Properties (12)Asset Type

HTL-02

Property nameR&B Hotel Umeda East

Smile Hotel Namba

Acquisition priceAppraisal value
Structure/Floors

2,069 million yen
2,320 million yen
RC 9F

1,750 million yen
1,490 million yen
S 9F

3,827 million yen
3,460 million yen
SRC B1F/9F

3,248 million yen
3,160 million yen
SRC B1F/9F

1,970 million yen
1,990 million yen
RC 10F2,500 million yen
2,440 million yen
S and SRC B1F/10F

Location

Osaka-shi, Osaka

Osaka-shi, Osaka

Edogawa-ku, Tokyo

Yokohama-shi, Kanagawa

Fukuoka-shi, Fukuoka

Chiyoda-ku, Tokyo730.26㎡
3,945.65㎡

285.28㎡
1,711.42㎡

1,418.00㎡
5,293.88㎡

782.66㎡
4,686.09㎡

543.94㎡
2,281.49㎡

167.74㎡
1,081.97㎡

October 20, 2000

February 6, 2008

March 19, 1991

September 21, 1987

February 20, 2017

September 20, 2017

FP15

FP15

FP15

FP15

FP16

FP15

FP16

（※）

（※）

（※）

（※）

Lot area
Total floor areas
Construction completion
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee

FP16

HTL-03REMBRANDT STYLETokyo Nishikasai

FP16

FP15

HTL-04

HTL-05The BREAKFAST HOTEL
Fukuoka Tenjin（Unit : Thousand yen）
HTL-06

HTL-01Best Western Yokohama

FP16

FP16

65,212

65,21240,39437,36584,60084,60080,40080,40065,212

65,21240,39437,36584,60084,60080,40080,400

-

-

-

-

-

-

-

-

8,310

9,114

4,118

6,090

25,324

11,953

15,352

18,055

742

742

717

660

1,200

1,200

1,200

1,520

GLANSIT AKIHABARA

Utilities expenses

4

3

-

-

-

-

-

-

Taxes and dues

5,691

5,704

2,313

2,313

8,522

8,521

4,638

4,637

Repair expenses

1,345

2,131

442

1,776

15,022

1,633

8,655

11,329Trust fee
Insurance premium

350

350

550

850

400

400

400

400

152

160

70

74

158

174

134

142

Other expenses

24

22

25

415

22

23

324

25

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

56,90256,09836,27531,27559,27572,64665,04762,34442,27855,386

48,86348,861

10,983

11,005

12,290

11,39014,383

15,881

13,357

13,409

8,647

8,655

4,643

4,643

45,91945,092

23,98519,88444,891

56,76551,69048,93533,63046,731

44,22044,218

-

9,427

1,575

315

47,977

12,204

2,672

13,382

-

295

-

-

NCF
Period-end book value(million yen)

56,902

46,67034,70030,95911,29760,44262,374

48,961

42,27855,09048,86348,861

2,083

2,081

1,605

1,594

3,872

3,868

3,191

3,191

1,905

1,896

2,476

2,471

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

59

Balance of Payments of Individual Properties (13)Asset Type
Property nameAcquisition priceAppraisal value
Structure/Floors
Location

HTL-07REMBRANDT STYLETokyo Nishikasai Grande

HTL-08
KOKO HOTEL
Osaka Namba

HTL-093,180 million yen
3,110 million yen
S 8F
Edogawa-ku, Tokyo

2,000 million yen
1,560 million yen
RC 9FOsaka-shi, Osakaabeno nini (Hotel)

3,600 million yen
3,850 million yen
RC B2F/24F
Osaka-shi, Osaka

HTL-11
KOKO HOTEL
Sapporo Ekimae

17,800 million yen
19,100 million yen
S and RC B1F/12F
Chuo-ku, Tokyo

6,700 million yen
7,080 million yen
S B1F/12F
Sapporo-shi, Hokkaido

Lot area

657.00㎡

335.31㎡

586.44㎡

848.78㎡

734.34㎡

Total floor areas

2,755.19㎡

2,061.38㎡

7,764.81㎡

7,299.11㎡

5,886.67㎡

Construction completion

February 7, 2017

FP15
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee

April 7, 2017

FP16

FP15

FP16

4,404.91㎡

January 31, 2012

October 29, 2014

October 20, 2015

FP15

FP15

FP16

5,000 million yen
5,410 million yen
RC 14F
Fukuoka-shi, Fukuoka
752.89㎡(Including the setback area of 7.33㎡)

FP15

FP16

（Unit : Thousand yen）
HTL-12
KOKO HOTEL
Fukuoka Tenjin

HTL-10
KOKO HOTEL
Ginza 1-Chome

Augst 20, 2007

FP16

FP15

FP16

70,00270,00253,142

46,244-

407,986-

145,690-

110,701

70,00270,00253,142

46,244-

407,986-

145,690-

110,701

-

-

-

-

-

-

-

-

-

-

6,978

7,537

5,452

6,418

-

10,131

-

8,609

-

1,536

990

990

900

900

-

600

-

550

-

600

Utilities expenses

-

-

-

-

-

-

-

-

-

-

Taxes and dues

5,305

5,305

3,347

3,321

-

9

-

8

-

8

Repair expenses

172

725

77

1,270

-

8,924

-

3,338

-

450

Trust fee
Insurance premium

400

400

350

350

-

333

-

333

-

333

89

94

64

67

-

241

-

191

-

140

Other expenses

21

22

713

508

-

23

-

4,187

-

3

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

63,02362,46447,69039,826

58,64358,625-397,854-

137,081-109,165

10,857

10,857

8,925

8,726

6,885

6,885

-

19,793-24,982-

6,449

52,16551,607

38,764

31,10051,75851,740-378,060-

112,099-

102,716

-

-

-

-

-

-

-

280

-

310

-

1,042

NCF
Period-end book value(million yen)

63,02362,46447,69039,826

58,64358,625-397,574-

136,771-

108,123

3,099

3,088

1,935

1,926

3,637

3,630

-

17,896

-

6,724

-

5,034

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

（※）

（※）

60

Balance of Payments of Individual Properties (14)Asset Type
Property nameAcquisition priceAppraisal value
Structure/Floors
Location

HTL-13
KOKO HOTEL
Hiroshima Ekimae

HTL-14
KOKO HOTEL
Kagoshima Tenmonkan

4,100 million yen
4,320 million yen
S and RC B1F/14F

3,800 million yen
4,280 million yen
S 13F

534.09㎡

Total floor areas

3,800 million yen
4,410 million yen
S 13F

Sapporo-shi, Hokkaido

Fukuoka-shi, Fukuoka
1,788.92㎡(Including the set-882.69㎡

626.34㎡

April 19, 2019

FP16

FP15

back area of 1.14㎡)

7,322.03㎡(including the

3,854.01㎡

attached building)

December 17, 2019

（Unit : Thousand yen）
HTL-16
Best Western Plus
Fukuoka Tenjin-minami

4,200 million yen
4,270 million yen
RC 10F

4,622.48㎡(including the5,370.75㎡

FP15

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

Fino Hotel Sapporo Odori

Hiroshima-shi, Hiroshima Kagoshima-shi, Kagoshima

Lot area

Construction completion

HTL-15

attached building)June 9, 2020

FP16

FP15

April 3, 2020

FP16

FP15

FP16

-

106,591-

76,832-

72,627-161,263-

106,591-

76,832-

72,627-161,263

-

-

-

-

-

-

-

-

-

1,611

-

1,343

-

1,081

-

39,102
600

-

600

-

600

-

600

-

Utilities expenses

-

-

-

-

-

-

-

-

Taxes and dues

-

8

-

8

-

8

-

8

Repair expenses

-

-

-

233

-

-

-

-

Trust fee
Insurance premium

-

333

-

333

-

333

-

333

-

167

-

143

-

119

-

227

Other expenses

-

502

-

25

-

19

-

37,933

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

104,979-

75,488-71,546-

122,160-

27,966-30,705-17,807-43,373-77,013-44,783-53,738-78,786310
310
NCF
104,669
75,178Period-end book value
4,106
3,801
(million yen)(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

-

310

-

310

-

71,236-

121,850

-

4,215

-

3,887

61

Note

P.4

（note 1） The "Tokyo area ratio" is the ratio of properties located in the Tokyo area out of the total acquisition price of real estate, etc. owned, for the "Tokyo area ratio of portfolio," andthe "Tokyo area ratio excluding suburban commercial facilities that are assumed to be sold" is the ratio of the total acquisition price of real estate, etc. owned, excluding three
suburban commercial facilities that are assumed to be sold, for the "Tokyo area ratio of portfolio," which is the total acquisition price of all properties in the Tokyo area.

P.4（note 2） “Ratio of mid sized assets” is the ratio of “mid sized assets” to SAR’s total assets, based on acquisition prices.

P.4（note 3） “Average building age” is the weighted average calculated by dividing the building age of each property.
* Building age” refers to, except for “Urban Park Daikanyama”, the period commencing on the date of completion of construction (based on the date of completion of constructionof the principal building as registered in the registry of real estates) to January 31, 2024. As for “Urban Park Daikanyama”, which consists of two buildings, “building age” refers to
the period commencing on the date of completion of the older building and ends on January 31, 2024.

P.4（note 4） “Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of the property in the real estate appraisal report, rounded to thesecond decimal place.

P.19（note 1） The figure shown as pre-extension total leasable space is based on the pre-extension building lease contract; the figure shown as post-extension total leasable space is basedon the second building lease amendment (option) agreement dated July 19, 2023.

P.19（note 2） “Floor-area ratio (FAR)” is calculated by dividing the total floor area (floor area subject to FAR) by the size of the land. The pre-extension total floor area is the leasable floor area
based on the pre-extension building lease contract; the post-extension total floor area which is the base of FAR is the area of the entire building given in the application for
confirmation of the building extension.

P.19（note 3） “Acquisition price” is calculated by setting the acquisition price of pre-extension pertaining to Funabashi High Technology Park Factory I to 100 and adding the anticipatedinvestment amount (includes a certain reserve fund) pertaining to the extension to the acquisition price.

P.19（note 4） The monthly rent index is calculated by setting the monthly rent as of the date of this document to 100 and the rent stated in the second building lease amendment (option)agreement.

P.27（note 1） The appraisal values of the properties managed by StarAsia Group are calculated based on the figures in the latest appraisal reports as of the respective dates. (Of the various
assets held by StarAsia Group as of the end of January 2024, this does not include properties that fall under the category of real estate, etc. and for which SAR has acquired
preferential negotiating rights, or properties held by Polaris.

P.27（note 2） “Ratio operated by Polaris” is the ratio by appraisal value of hotel properties managed and operated by Polaris to the total appraisal value of 12 hotels with preferential
negotiating rights.

P.34（note 1） “GRESB Real Estate Assessment” benchmarks ESG performance based on multiple factors and gives participants a five-grade relative evaluation. GRESB is the name of theorganization which provides annual benchmarking assessments to measure ESG (Environmental, Social and Governance) integration of real estate companies and funds. It was
founded in 2009 by a group of major European pension funds who played leading roles in launching the Principles for Responsible Investment (PRI).

P.35（note 1）

P.35

（note 2） “GHG emission intensity” refers to per-unit GHG emissions amount resulting from a specific activity. In this document, per-unit GHG emissions intensity is calculated using total
floor area (m2) accounting for operating months as a unit.

P.35（note 3） “Energy Consumptions intensity” refers to per-unit Energy Consumptions emissions amount resulting from a specific activity. In this document, Energy Consumptions intensity is
calculated using total floor area (m2) accounting for operating months as a unit.

P.36（note 1） The ratio of assets obtaining environmental certification is calculated by dividing the total floor area of assets which are environmentally certified as of the date of the documentby the total floor area of assets.

“GHG” refers to greenhouse gas. Scope 2 emissions (indirect emissions associated with the purchase of electricity, steam, or heat) indicated in this document are calculated
based on market-based factors.

62

Note
P.36

（note 2） “DBJ Green Building Certification” is a certification under the framework system (hereinafter, “the framework”) established by Development Bank of Japan Inc. (hereinafter, “DBJ”)
in April 2011 to support properties with environmental and social awareness (“Green Building”). The framework rates and certifies properties required by society and the economy
based on a comprehensive assessment covering items from environmental performance of properties to measures for various stakeholders including disaster prevention andconsideration for local communities, and supports such initiatives. Japan Real Estate Institute (JREI) has conducted certification, while DBJ has controlled the overall framework
since August 2017. The framework has five levels of certification (★ ~ ★★★★★).

P.36（note 3） “BELS Evaluation Certification” is a third-party evaluation framework to assess energy saving performance of buildings based on criteria stipulated by the Ministry of Land,
Infrastructure, Transport and Tourism. The framework has five levels of certification (★★★★★～★).

P.36（note 4） CASBEE Real Estate Certification integrates multiple assessment methods including CASBEE’s real estate assessment system, which SAR was assessed. CASBEE’s realestate assessment system was developed with the aim of making use of the results of the environmental assessment of buildings in real estate assessment. It scores buildings
under each of the evaluation items in five categories, comprising "1. Energy & Greenhouse Gases", "2. Water", "3. Use of Resources & Safety", "4. Biodiversity & Sustainable
Site", and "5. Indoor Environment". Based on the scores, the assessment results are granted under one of four ranks: Rank S, Rank A, Rank B+, and Rank B. The same shallapply hereinafter.

P.36（note 5） “Urban Park Miyamaedaira” consists of two buildings (“Urban Park Miyamaedaira EAST” and “Urban Park Miyamaedaira WEST”) and each of them received certification.

P.36（note 6） “Green lease contracts” indicates the lease contracts stating that the lessor and the tenant jointly determine rules including reduction of environmental burdens such as energy
saving of properties and improvement of working environment by concluding contracts, memorandums, etc., and implement such rules.

63

Disclaimer
This document has been prepared to provide information and is not for soliciting and inviting investment in or recommendingtransaction of certain products. SAR does not guarantee the accuracy or completeness of the information provided in thisdocument although effort has been made to provide correct information based on information available to SAR. Moreover,please note that the contents of this document are subject to change or removal without prior notice. Duplication andreproduction, etc. of the contents contained in this document without prior consent is prohibited. This document includes
graphs, data, etc. publicly disclosed by third parties. Furthermore, the document also includes analysis, judgement and other
opinions by Star Asia Investment Management, Co,. Ltd. concerning such information. This document discusses future
expectations, identifies strategies, contains projections of our results operations or financial condition, or states other forwardlooking information based on certain assumptions, estimates and projections, Known and unknown risks, uncertainties andother factors could cause our actual results, performance or achievements to differ materially from those contained or impliedin any forward-looking statement. We cannot give any assurances that the expectations expressed in these forward-looking
statements will turn out to be correct.
Copying, reprinting or any other use of the contents of this document without prior approval is strictly prohibited.

■Star Asia Group YouTube Cannel
https://www.youtube.com/@user-wf8jo1ct6p■ Contact regarding this material
Akiko Kanno, Director and CFO (General Manager of Finance Management Department)
Star Asia Investment Management Co., Ltd.
Atago Green Hills Mori Tower 18F, 2-5-1, Atago, Minato-ku, Tokyo 105-6218
Tel: +81-3-5425-1340
64