(REIT) Financial Report for Fiscal Period Ended July 31, 2023
September 13, 2023
Stock Exchange Listing: Tokyo Stock Exchange
URL: https://starasia-reit.com/en/

REIT Securities Issuer:
Securities Code:
Representative:

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

Asset Management Company:
Representative:
Contact:

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

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

October 12, 2023
October 30, 2023

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

Yes
Yes

(Amounts are rounded down to the nearest million yen)
1. Status of Management and Assets for Fiscal Period Ended July 31, 2023 (from February 1, 2022 to July 31, 2023)(1) Management Status(% figures are the rate of period-on-period increase (decrease))
Fiscal period
Operating revenue
Operating income
Ordinary income
Net income
million yen%
million yen%
million yen%
million yen%
Ended Jul. 2023
6,946
7.1
3,606
7.7
3,073
10.5
3,073
10.5
Ended Jan. 2023
6,486
6.5
3,349
9.9
2,782
8.7
2,781
8.7
Net income
per unit

Fiscal period

Ratio of net income
to equity
yen
1,599
1,455

Ended Jul. 2023
Ended Jan. 2023

%
3.0
2.8

Ratio of ordinary income
to total assets
%
1.5
1.4

Ratio of ordinary income
to operating revenue
%
44.2
42.9

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

yenmillion yen%%

Ended Jul. 2023

1,586

3,047

-

Ended Jan. 2023

1,491

2,865

-

-

99.2

2.9

-

103.0

2.8

(Note 1) Total cash distribution differs from net income due to the reversal of reserve for temporary difference adjustment and otherfactors.
(Note 2) For the fiscal period ended January 31, 2023, cash distribution payout ratio is calculated by the following formula due tochanges in the number of investment units during the period following issuance of new investment units during the period:
Total cash distribution (not including cash distribution in excess of earnings) ÷ Net income × 100(3) Financial Position
Fiscal period

Total assets
million yen
209,259
208,766

Net assets
million yen
103,224
103,455

Net cashprovided by (used in)operating activities
million yen
5,107
3,377

Net cashprovided by (used in)investing activities
million yen(2,492)(15,214)Ended Jul. 2023
Ended Jan. 2023

Equity ratio
%
49.3
49.6

Net assets per unit
yen
53,71553,835(4) Status of Cash Flows
Fiscal period

Ended Jul. 2023
Ended Jan. 2023

-1-

Net cashCash and cash equivalents
provided by (used in)at end of period
financing activities
million yen
million yen(2,866)
11,787
11,534
12,038

2. Management Status Forecast for Fiscal Period Ending January 31, 2024 (from August 1, 2023 to January 31, 2024) and Fiscal PeriodEnding July 31, 2024 (from February 1, 2024 to July 31, 2024)(% figures are the rate of period-on-period increase (decrease))
Fiscal period

Operating revenue

million yen
Ending Jan. 2024
Ending Jul. 2024

7,892
8,021

Operating income% million yen
13.6
1.6

4,110
4,159

% million yen

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

7.2
5.5

7.2
5.5

Ordinary income% million yen
14.0
1.2

3,296
3,477

Net income

3,296
3,476

1,513
1,520

0
0

(Reference) Forecast net income per unit (Expected net income ÷ expected total number of investment units issued and outstandingat end of period)
Fiscal period ending January 31, 2024:
Expected total number of investment units issued and outstanding at end of period 2,372,000 units
Forecast net income per unit 1,389 yen
Fiscal period ending July 31, 2024:
Expected total number of investment units issued and outstanding at end of period 2,372,000 units
Forecast net income per unit 1,465 yen(Note)Cash distribution per unit calculated using the expected total number of investment units issued and outstanding at endof period above (total number of investment units issued and outstanding as of the date of this report of 2,372,000 units).

* Others(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement① Changes in accounting policies accompanying amendments to accounting standards, etc. : No
② Changes in accounting policies other than ①: No③ Changes in accounting estimates: No④ Retrospective restatement: No(2) Total Number of Investment Units Issued and Outstanding① Total number of investment units issued and outstanding (including own investment units) at end of period
Fiscal period ended Jul. 31, 2023
1,921,689 units
Fiscal period ended Jan. 31, 2023
1,921,689 units② Number of own investment units at end of period
Fiscal period ended Jul. 31, 2023
0 units
Fiscal period ended Jan. 31, 2023
0 units(Note) For the number of investment units serving as the basis for calculation of net income per unit, please see “Notes on Per
Unit Information” on page 22.
* Financial reports are exempt from audits by a certified public accounting or accounting firms.
* Special Note
The management status outlook and other forward-looking statements contained in this document are based on information thatare currently available and certain assumptions that are deemed reasonable by SAR. Accordingly, the actual management status, etc.
may differ materially due to various factors. In addition, the forecast figures are the current figures calculated under the assumptions
described in “Assumptions Underlying Operating Results Forecasts for Fiscal Period Ending January 31, 2024, and Fiscal Period Ending
July 31, 2024” on pages 3-4. Accordingly, the actual operating revenue, operating income, ordinary income, net income, cash
distribution per unit (not including cash distribution in excess of earnings) and cash distribution in excess of earnings per unit mayvary due to acquisition/disposition of real estate, etc., trends of the real estate market, etc., fluctuations in interest rates, or otherchanges in the circumstances surrounding SAR, etc. in the future. In addition, the forecast is not a guarantee of the amount of cash
distribution.

-2-

Assumptions Underlying Operating Results Forecasts for
Fiscal Period Ending January 31, 2024, and Fiscal Period Ending July 31, 2024
Item

Assumptions

Fiscal period➢ Fiscal period ending January 31, 2024 (16th fiscal period): August 1, 2023 – January 31, 2024 (184 days)➢ Fiscal period ending July 31, 2024 (17th fiscal period): February 1, 2024 – July 31, 2024 (182 days)➢ It is assumed that, in addition to the assets held by SAR as of the date of this report (68 real estate trust
beneficiary interests, 3 mezzanine loan debts and 1 preferred equity securities (collectively, “Currently
Held Assets,” with those in the form of real estate trust beneficiary interests being referred to as“Currently Held Assets (Real Estate)”, those in the form of mezzanine loan debt being referred to as“Currently Held Assets (Mezzanine)”, and those in the form of preferred equity securities being referred
to as “Currently Held Assets (Preferred Equity)”), the following 3 real estate trust beneficiary interests(“Assets to be Acquired”) will be acquired (the “Acquisition”).

Assets undermanagement<The Acquisition>
Property names: Urban Park Kamata Minami I, Urban Park Kamata Minami II, Urban Park Umejima
Planned acquisition date: December 1, 2023
➢ It is assumed that other than the Acquisition there will be no change in assets under management (newasset acquisitions, sales of Currently Held Assets, etc.) through to the end of the fiscal period ending July
31, 2024.
➢ However, in reality assets under management may change.

Operating revenues➢ Rent revenues from Currently Held Assets (Real Estate) are calculated based on the details stated in thelease agreements effective as of the date of this report, and rent revenues from the Assets to be Acquired
are calculated based on information provided by each seller and the details stated in the lease agreementsthat are expected to be effective as of the planned acquisition date, taking into consideration factors suchas market movements. It is also assumed that there will be no arrears or non-payment of rent by tenants.
➢ Interest or dividend income from Currently Held Assets (Mezzanine) are calculated based on outlines
which define the contents of Currently Held Assets (Mezzanine) and the details stated in the loan
agreements or trust agreements, etc. that are effective as of the date of this report. It is also assumed
that no interest payments or dividend payments will be unpaid. For Currently Held Assets (Mezzanine)that may be subject to redemption, interest or dividend income is calculated taking into account the
impact of such redemption.
➢ For Currently Held Assets (Preferred Equity), it is based on the premise that the assumed loan income will
be generated based on the details of agreements on preferred equity lending transactions, etc.
➢ Gain on sale of Urban Park Gokokuji and Urban Park Koenji, which were transferred in August 2023, of
380 million yen is expected for the fiscal period ending January 31, 2024.

Operating expenses➢ Among expenses related to rent business, which are the main operating expenses, expenses other thandepreciation are calculated on the basis of historical performance data, by reflecting variable expense
factors.
➢ Fixed property taxes, city planning taxes, and other public charges are expected to be 484 million yen for
the fiscal period ending January 31, 2024, and 592 million yen for the fiscal period ending July 31, 2024.
For the 8 real estate trust beneficiary interests acquired on September 1, 2023 (the “Acquired Assets”)
and Assets to be Acquired, such taxes are expected to be settled with the seller on a pro-rata basis basedon the number of days of ownership at the time of acquisition of the properties. However, SAR will include
such settled amount in the acquisition cost, and thus SAR will not record these items for the fiscal year
2023 as expenses in the fiscal period ending January 31, 2024. It is planned that fixed property taxes, city
planning taxes and other public charges for the Assets to be Acquired will be recorded as expenses
beginning from the fiscal period ending July 31, 2024.
➢ For expenditures for repair and maintenance of buildings, based on the repair and maintenance plan
prepared by Star Asia Investment Management Co., Ltd, the asset manager of SAR (the “Asset Manager”),
272 million yen is expected for the fiscal period ending January 31, 2024, and 234 million yen for the fiscal
period ending July 31, 2024. However, the actual expenditures for repair and maintenance for the fiscal
periods could differ significantly from the estimated amounts, as urgent expenditures due to damage tobuildings may arise due to unexpected factors, and because such expenditure amounts generally tend tovary significantly from year to year, and do not arise regularly.
➢ Depreciation is calculated using the straight-line method including for ancillary costs and is expected tobe 953 million yen for the fiscal period ending January 31, 2024, and 1,024 million yen for the fiscal period
ending July 31, 2024.
➢ Operating expenses other than expenses related to rent business are expected to be 702 million yen for
the fiscal period ending January 31, 2024, and 707 million yen for the fiscal period ending July 31, 2024.

NOI(Net Operating
Income)➢ Total NOI of the entire portfolio is expected to be 5,342 million yen for the fiscal period ending January
31, 2024, and 5,850 million yen for the fiscal period ending July 31, 2024.
➢ NOI is calculated by using the following calculation method.
NOI = rent revenue – rent expenses (excluding depreciation)
-3-

Item

Assumptions

Non-operating
expenses➢ Expenses on issuance of new investment units (amortization of investment unit issuance costs) are
expected to be 20 million yen for the fiscal period ending January 31, 2024, and 20 million yen for the
fiscal period ending July 31, 2024.
➢ The sum of interest expenses and other financing-related expenses is expected to be 789 million yen for
the fiscal period ending January 31, 2024, and 657 million yen for the fiscal period ending July 31, 2024.
➢ The sum of interest expenses on investment corporation bonds and other expenses on investment
corporation bond issuance (amortization of investment corporation bond issuance costs) is expected to
be 4 million yen for the fiscal period ending January 31, 2024, and 4 million yen for the fiscal period ending
July 31, 2024.

Debt financing andinvestment
corporation bonds➢ The total amount of interest-bearing liabilities is assumed to be 123,140 million yen as of the end of the
fiscal period ending January 31, 2024, and 121,840 million yen as of the end of the fiscal period ending
July 31, 2024.
➢ As of the date of this report, SAR has outstanding debt of 118,940 million yen and outstanding investment
corporation bonds of 1,000 million yen. In addition, it is assumed that new debt totaling 3,200 million yen
is taken out in December 2023 from qualified institutional investors as defined in Article 2, paragraph 3,
item 1 of the Financial Instruments and Exchange Act.
➢ Of the debt outstanding as of the date of this report, 1,300 million yen is planned to be prepaid during
the fiscal period ending July 31, 2024 from the proceeds of refunds of consumption tax, etc.
➢ Other than the above, it is assumed that those with repayment dates falling in the fiscal period ending
January 31, 2024, and the fiscal period ending July 31, 2024, will be fully refinanced and that there will be
no change to the existing outstanding debt and outstanding investment corporation bonds through to theend of the fiscal period ending July 31, 2024.

Investment units➢ It is assumed that the total number of investment units issued and outstanding will be 2,372,000 units,
the number as of the date of this report, and that there will be no change in the number due to issuanceof new investment units, etc. through to the end of the fiscal period ending July 31, 2024.

➢ SAR calculates its distribution per unit (excluding distributions in excess of earnings) pursuant to its cash
distributions policy as set forth in its Articles of Incorporation.
➢ As for the reserve for temporary difference adjustment, SAR plans to continuously reverse 1% or more of
the initial reserve in each fiscal period and use it mainly to mitigate any negative impact on distributions
caused by temporary decrease in income or incurred expenses and to avoid the occurrence of corporate
and other tax expenses as a result of any differences between tax and accounting.
Cash distributions ➢ As to cash distribution for the fiscal period ending January 31, 2024, it is assumed that a total of 3,588
per unit
million yen (1,513 yen per unit) will be distributed, which is the sum of the estimated net income of 3,296(not including
million yen, the expected amount of reversal of reserve for temporary difference adjustment of 88 million
cash distribution
yen and a portion of retained earnings brought forward of 203 million yen. As to cash distribution for thein excess of earnings)
fiscal period ending July 31, 2024, it is assumed that a total of 3,605 million yen (1,520 yen per unit) will
be distributed, which is the sum of the estimated net income of 3,476 million yen, the expected amountof reversal of reserve for temporary difference adjustment of 88 million yen and a portion of retained
earnings brought forward of 39 million yen.
➢ The distribution per unit may change due to various factors including changes to the assets undermanagement, changes to rent revenues given movements etc. of tenants, or the occurrence of
unexpected repairs.
Cash distributions
in excess of earnings ➢ SAR has no plans to make distributions in excess of earnings as of the date of this report.
per unit

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

-4-

3.

Financial Statements(1) Balance Sheet(Unit: thousand yen)
14th fiscal period(As of January 31, 2023)

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

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

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

3,262,429
8,525,306
139,180
197,986
14,462
12,139,365

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

114
(114)
0
56,821,886(6,898,692)
49,923,193
25,744(7,577)
18,166
251,570(44,740)
206,829
139,432(48,732)
90,699139,857,495
33,095
190,129,480

4,082,300
4,082,300

4,082,300
4,082,300-

1,588,015

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

740,000
331,220
10,359191,1222,860,717
197,072,498

11,56349,37060,933208,766,606

10,54336,75847,301
209,259,165

(Unit: thousand yen)
14th fiscal period(As of January 31, 2023)
Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term borrowings
Leasehold and guarantee deposits received
Leasehold and guarantee deposits received in trust
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unitholders’ capital surplus
Voluntary reserve
Reserve for temporary difference adjustment
Total voluntary reserve
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets-6-

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

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

995,681
14,340,000
534,593
75,324605
252,695
1,236,897
35,505
17,471,301

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

1,000,000
81,500,000
4,179
5,965,643
93,57888,563,401
106,034,702

66,123,367

66,123,367

25,132,218

25,132,218*2 8,624,499*2 8,535,586

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

8,535,586
3,340,372
37,008,177
103,131,545

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

92,917
92,917*1 103,224,463
209,259,165

(2) Statement of Income and Retained Earnings(Unit: thousand yen)
14th fiscal period
From: August 1, 2022
To: January 31, 2023
Operating revenue
Rental revenue
Other lease business revenue
Gain on sale of real estate
Other revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody and administrative service fees
Directors’ compensations
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of unpaid distribution
Subsidy income
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)-7-

15th fiscal period
From: February 1, 2023
To: July 31, 2023

*1 5,995,567*1 6,048,231*1 467,828*1 454,964

22,857
6,486,253*2 414,166*1 2,556,151*1 2,744,572

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

418,486
42,3952,400
132,242
3,340,096
3,606,830

56
1,476
1
1,534

53
1,046
504
315
1,918

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

377,649
3,500
140,125
1,020
12,611
534,906
3,073,841
3,073,841
605
605
3,073,236
267,135
3,340,372

29,564
6,946,926

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

59,115,701

Voluntary reserve
Unitholders’capital surplus

Reserve fortemporarydifference
adjustment

25,132,218

8,713,411

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

88,912--

2,781,930

2,781,930

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

140,792

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

25,132,218

8,624,499

8,624,499

3,043,461

36,800,179

102,923,546

28,29728,297Total
net assets

95,803,384

7,007,666

Dividends from surplus(2,641,138)

Reversal of reserve fortemporary difference
adjustment-

Net income

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

-

Total
Deferredvaluation andgains or losses
translation
on hedges
adjustments

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

95,775,087

7,007,666

Valuation and translation
adjustments

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

36,659,386

7,007,666

Reversal of reserve fortemporary difference
adjustment

Balance at end of the period

Total
surplus7,007,666

Dividends from surplus

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

2,813,756

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

7,651,713

531,551

531,551

103,455,098-8-

15th fiscal period (from February 1, 2023 to July 31, 2023)(Unit: thousand yen)
Unitholders’ equity
Surplus
Voluntary reserve

Unitholders’capitalBalance at beginning of theperiodChanges of items during theperiod66,123,367

Unappropriatedretainedearnings
Total voluntary(undisposed
reserveloss)

Unitholders’capital surplus

Reserve fortemporarydifference
adjustment

25,132,218

8,624,499

8,624,499

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

36,800,179

102,923,546(2,865,238)(2,865,238)(2,865,238)

88,912--

3,073,236

3,073,236

3,073,236(88,912)(88,912)296,910

207,998

207,998*1 66,123,367

25,132,218

8,535,586

8,535,586

3,340,372

37,008,177

103,131,545

Deferred
gains or losses onhedgesTotalvaluation andtranslation
adjustments

531,551

531,551

Total
net assets

103,455,098(2,865,238)

Reversal of reserve fortemporary difference
adjustment-

Net income

Balance at end of the period

3,043,461-

Dividends from surplus

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

Total
surplus-

Valuation and translation
adjustments

Balance at beginning of theperiodChanges of items during theperiodTotalunitholders’equity3,073,236(438,633)(438,633)(438,633)(438,633)(438,633)(230,635)

92,917

92,917103,224,463-9-

(4) Statement of Cash Distributions
14th fiscal period
From: August 1, 2022
To: January 31, 2023
I.

Unappropriated retained earnings(Unit: yen)
15th fiscal period
From: February 1, 2023
To: July 31, 2023

3,043,461,280

3,340,372,051

88,912,365
2,865,238,299

88,912,365
3,047,798,754(1,491)
2,865,238,299(1,586)
3,047,798,754(1,491)(1,586)

267,135,346

381,485,662

II. Reversal of voluntary reserve
Reversal of reserve for temporary difference adjustment *1
III. Cash distribution[Cash distribution per unit]
Cash distribution of earnings[Cash distribution of earnings per unit]
IV. Retained earnings carried forward
Method of calculation of amount of cash distributions
14th fiscal period (from August 1, 2022 to January 31, 2023):
Pursuant to the cash distribution policy provided in Article 35, Paragraph 1 of SAR’s Articles of Incorporation, SAR shall distribute inexcess of the amount equivalent to 90% of the amount of distributable earnings of SAR as defined in Article 67-15, Paragraph 1 of
the Act on Special Measures Concerning Taxation. In accordance with such policy, concerning cash distribution of earnings (notincluding cash distribution in excess of earnings), the decision was made to distribute 2,865,238,299 yen, which is equivalent to thesum of the amount remaining after reserving 5,605,038 yen from net income and the amount of reversal of reserve for temporary
difference adjustment of 88,912,365 yen.
15th fiscal period (from February 1, 2023 to July 31, 2023):
Pursuant to the cash distribution policy provided in Article 35, Paragraph 1 of SAR’s Articles of Incorporation, SAR shall distribute inexcess of the amount equivalent to 90% of the amount of distributable earnings of SAR as defined in Article 67-15, Paragraph 1 of
the Act on Special Measures Concerning Taxation. In accordance with such policy, concerning cash distribution of earnings (notincluding cash distribution in excess of earnings), the decision was made to distribute 3,047,798,754 yen, which is equivalent to thesum of the amount remaining after reserving 114,350,316 yen from net income and the amount of reversal of reserve for temporary
difference adjustment of 88,912,365 yen.

- 10 -

(5) Statement of Cash Flows(Unit: thousand yen)
14th fiscal period
From: August 1, 2022
To: January 31, 2023
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Decrease in property, plant and equipment in trust due to sale
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Repayments of leasehold and guarantee deposits received
Proceeds from leasehold and guarantee deposits received
Repayments of leasehold and guarantee deposits received intrust
Proceeds from leasehold and guarantee deposits received in
trust
Purchase of investments in other securities of subsidiaries andassociates
Purchase of investment securities
Proceeds from redemption of investment securities
Net cash used in investing activities
Cash flows from financing activities
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 11 -

15th fiscal period
From: February 1, 2023
To: July 31, 2023

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

3,073,841
763,353
1,020
12,611(53)
381,149
8,532
181,189
205,289
13,262(297)(42,522)(4,176)217,372
688,594(9,408)5,489,759
53(383,278)
1,406
5,107,940(15,895,451)
693(698,358)(1,701)-(222,276)(130,365)

502,920

255,855-(1,578,073)

400,000(15,214,114)(340,000)(2,492,642)

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

10,790,000(10,790,000)(2,866,153)(2,866,153)(250,855)
12,038,591*1 11,787,736

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

- 12 -

6.

7.

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

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

(8) Notes on the Financial Statements[Notes on the Balance Sheet]*1 Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Unit: thousand yen)
14th fiscal period(As of January 31, 2023)

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

50,00050,000*2 Matters concerning provision and reversal of the reserve for temporary difference adjustment
14th fiscal period (as of January 31, 2023)(Unit: thousand yen)
InitialamountGain on negative
goodwill (Note)

8,891,236

Balance at
beginning of
the period

Reserveduring theperiodReversalduring theperiodBalance at
end of theperiodReasons for provision andreversal

8,713,411-

88,9128,624,499

Appropriate for distribution(Note) Gain on negative goodwill indicates the amount of provision of gain on negative goodwill recorded in the past fiscal period, and will be reversedin equal amount or more over 50 years or less every fiscal period starting from the 12th fiscal period, which is the period following the fiscal
period in which the provision was made.

15th fiscal period (as of July 31, 2023)(Unit: thousand yen)
InitialamountGain on negative
goodwill (Note)

8,891,236

Balance at
beginning of
the period

Reserveduring theperiodReversalduring theperiodBalance at
end of theperiodReasons for provision andreversal

8,624,499-

88,9128,535,586

Appropriate for distribution(Note) Gain on negative goodwill indicates the amount of provision of gain on negative goodwill recorded in the past fiscal period, and will be reversedin equal amount or more over 50 years or less every fiscal period starting from the 12th fiscal period, which is the period following the fiscal
period in which the provision was made.

- 13 -

[Notes on the Statement of Income and Retained Earnings]*1 Breakdown of operating income from real estate leasing(Unit: thousand yen)
14th fiscal period
From: August 1, 2022
To: January 31, 2023

15th fiscal period
From: February 1, 2023
To: July 31, 2023

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

5,182,484

5,232,657

Common area maintenance revenue

570,233

570,304

Parking revenue

204,917

206,214

Facility use revenue

31,533

Other rental revenue

6,399

31,807
5,995,567

7,247

6,048,231

Other lease business revenue
Utilities reimbursement419,588

Other revenue

48,240Total operating revenue from real estate leasing

358,375
467,828

96,5886,463,396

454,964
6,503,195

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

441,402452,917

Utilities expenses

462,373

389,316

Taxes and dues

458,246

493,000

Repair expenses

173,257

308,817

Trust fee

26,16630,653

Insurance premium

13,59813,322

Depreciation

743,661

763,353

Other expenses

237,444

293,190

Total operating expenses from real estate leasing

2,556,151

2,744,572

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

3,907,244

3,758,623*2 Breakdown of gain (loss) on sale of real estate
14th fiscal period (from August 1, 2022 to January 31, 2023)
Not applicable.
15th fiscal period (from February 1, 2023 to July 31, 2023)(Unit: thousand yen)
Funabashi Hi-Tech Park Factory II
Proceeds from sale of real estate

1,150,000

Cost of sale of real estate

688,594

Other sale expenses

47,239Gain on sale of real estate

414,166[Notes on the Statement of Unitholders’ Equity]*1 Total number of investment units authorized and total number of investment units issued and outstanding
14th fiscal period
From: August 1, 2022
To: January 31, 2023

15th fiscal period
From: February 1, 2023
To: July 31, 2023

Total number of investment units authorized

10,000,000 units

10,000,000 units

Total number of investment units issued and outstanding

1,921,689 units

1,921,689 units- 14 -

[Notes on the Statement of Cash Distributions]14th fiscal period
From: August 1, 2022
To: January 31, 2023

15th fiscal period
From: February 1, 2023
To: July 31, 2023

*1 Reserve for temporary difference adjustment
SAR provided 8,891,236 thousand yen as reserve fortemporary difference adjustment in the 10th fiscal
period. From the 11th fiscal period, SAR plans to reverse
the same amount or more in each fiscal period over a
period of up to 50 years. In the fiscal period underreview, SAR decided to reverse 88,912 thousand yen.

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

[Notes on the Statement of Cash Flows]*1 Reconciliation of cash and cash equivalents at end of period to the amount of balance sheet items(Unit: thousand yen)
14th fiscal period
From: August 1, 2022
To: January 31, 2023

15th fiscal period
From: February 1, 2023
To: July 31, 2023

Cash and deposits

3,488,637

3,262,429

Cash and deposits in trust

8,549,954

8,525,306

Cash and cash equivalents

12,038,591

11,787,736[Notes on Lease Transactions]Operating leases (as lessor)
Future minimum lease payments(Unit: thousand yen)
14th fiscal period
As of January 31, 2023

15th fiscal period
As of July 31, 2023

Not later than 1 year

5,287,040

5,715,787

Later than 1 year

7,653,000

9,733,645

12,940,040

15,449,432

Total[Notes on Financial Instruments]
1.

Matters concerning status of financial instruments(1) Policy for handling financial instruments
SAR shall procure funds to allocate to acquisition of real estate related assets, repayment of interest-bearing liabilities,
etc. through mainly issuance of investment units, borrowing from financial institutions, issuance of investment
corporation bonds, etc. Upon procuring funds through interest-bearing liabilities, due consideration shall be given tofund procurement agility and financial stability.
(2) Description of financial instruments and associated risks, and risk management system
The funds procured through loans, which shall be for the purpose of mainly acquisition of assets, are exposed to liquidity
risk until the repayment date, but the concerned risks are managed by taking such measures as lengthening the
procurement periods and staggering the maturities. In addition, loans with floating interest rates are exposed to interest
rate fluctuation risk, but derivative transactions (interest rate swap transactions) are utilized as hedging instruments to,in effect, convert interest rates to fixed rates in order to mitigate that risk. For the hedge accounting approach, hedging
instruments, hedged items, hedging policy and method of assessing the effectiveness of hedging, please refer to “5.
Method of hedge accounting” described under “(7) Notes on Matters Concerning Significant Accounting Policies” earlier
in this document.
(3) Supplementary explanation to matters concerning fair value, etc. of financial instruments
Not applicable.

- 15 -

2.

Matters concerning fair value, etc. of financial instruments
The carrying amount, fair value and the amount of difference between them are as follows. Because “cash and deposits”
and “cash and deposits in trust” are cash and settled in a short period of time and the fair values approximate the bookvalues accordingly, notes on such are omitted.
14th fiscal period (as of January 31, 2023)(Unit: thousand yen)
Carrying amount

Fair value

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

15,630,000

15,630,321

321(2) Investment corporation bonds

1,000,000

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

80,210,000

80,102,528(107,471)

Liabilities total

96,840,000

96,719,050(120,949)

531,551

531,551-(4) Derivative transactions (*)(*)

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

15th fiscal period (as of July 31, 2023)(Unit: thousand yen)
Carrying amount

Fair value

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

14,340,000

14,340,000-(2) Investment corporation bonds

1,000,000

990,900(9,100)(3) Long-term borrowings

81,500,000

81,455,187(44,812)

Liabilities total

96,840,000

96,786,087(53,912)92,917

92,917-(4) Derivative transactions (*)(*)

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

(Note 1) Method of calculation of the fair value of financial instruments(1) Current portion of long-term borrowings (3) Long-term borrowings
Of these, the fair values of those with fixed interest rates are calculated by the present value obtained by discounting the total principal andinterest by the rate expected when similar funds are additionally borrowed in correspondence with the remaining term. Since those withfloating interest rates are under terms and conditions that interest rates be renewed every set period of time, the fair values are approximately
the same as the book value, and thus such are used.
(2) Investment corporation bonds
The refence value announced by Japan Securities Dealers Association is stated.
(4) Derivative transactions
Please refer to “Notes on Derivative Transactions” later in this document.
(Note 2) Amount of redemption/repayment of investment corporation bonds and loans to be due after the date of settlement of accounts
14th fiscal period (as of January 31, 2023)(Unit: thousand yen)
Later than 1 year Later than 2 years Later than 3 years Later than 4 years
and not later than and not later than and not later than and not later than Later than 5 years
2 years
3 years
4 years
5 years

Not later than
1 yearInvestment corporationbonds
Long-term borrowings
Total

-

-

-

-

-

1,000,000

15,630,000

12,285,000

19,150,000

20,275,000

18,450,000

10,050,000

15,630,000

12,285,000

19,150,000

20,275,000

18,450,000

11,050,000

15th fiscal period (as of July 31, 2023)(Unit: thousand yen)
Later than 1 year Later than 2 years Later than 3 years Later than 4 years
and not later than and not later than and not later than and not later than Later than 5 years
2 years
3 years
4 years
5 years

Not later than
1 yearInvestment corporationbonds
Long-term borrowings
Total

-

-

-

-

-

1,000,000

14,340,000

11,085,000

20,910,000

19,965,000

19,490,000

10,050,000

14,340,000

11,085,000

20,910,000

19,965,000

19,490,000

11,050,000- 16 -

[Notes on Securities]
14th fiscal period (as of January 31, 2023)
Notes are omitted because they lack significance.

15th fiscal period (as of July 31, 2023)
Notes are omitted because they lack significance.
[Notes on Derivative Transactions]1.

Derivative transactions to which hedge accounting is not applied
14th fiscal period (as of January 31, 2023)
Not applicable.
15th fiscal period (as of July 31, 2023)
Not applicable.

2.

Derivative transactions to which hedge accounting is applied
14th fiscal period (as of January 31, 2023)
The following is the contract amount or the amount equivalent to the principal provided in the contract as of the date ofsettlement of accounts for each hedge accounting approach.
(Unit: thousand yen)Hedge
accounting
approach

Type, etc. of derivative transactionMainhedged item

Principle
accounting

Interest rate swap transaction(floating receivable; fixed payable)

Long-term
borrowings

Contract amount, etc. (Note 1)
Of which,due after 1 year
77,205,000

67,675,000

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

15th fiscal period (as of July 31, 2023)
The following is the contract amount or the amount equivalent to the principal provided in the contract as of the date ofsettlement of accounts for each hedge accounting approach.
(Unit: thousand yen)Hedge
accounting
approach

Type, etc. of derivative transactionMainhedged item

Principle
accounting

Interest rate swap transaction(floating receivable; fixed payable)

Long-term
borrowings

Contract amount, etc. (Note 1)
Of which,due after 1 year
82,305,000(Note 1) Contract amount, etc. are based on notional principal.
(Note 2) Fair value is calculated based on the price quoted by lending financial institutions, etc.

[Notes on Retirement Benefits]
14th fiscal period (as of January 31, 2023)
Not applicable.
15th fiscal period (as of July 31, 2023)
Not applicable.

- 17 -

68,965,000

Fair value(Note 2)
92,917

[Notes on Tax-Effect Accounting]1.

Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities(Unit: thousand yen)
14th fiscal period
As of January 31, 2023
Deferred tax assets
Valuation adjustment upon merger

1,123,529

1,090,958

Acquisition cost of securities
Deferred gains or losses on hedges

1,284
760

3,030
30,895

1,125,574(1,125,574)

1,124,884(1,124,884)

-

-

-

-

Deferred tax assets, subtotal
Valuation allowance
Deferred tax assets, total
Deferred tax assets, net
2.

15th fiscal period
As of July 31, 2023

Breakdown of major components that caused any significant differences between the statutory tax rate and the effective
income tax rate after application of tax-effect accounting(Unit: %)14th fiscal period
As of January 31, 2023
Statutory tax rate
[Adjustments]

31.46

31.46

Deductible distributions payable
Reversal of excess depreciation(30.66)(0.70)(31.19)(0.90)

Others(0.08)

0.65

0.02

0.02

Effective income tax rate
after application of tax-effect accounting[Notes on Share of Profit or Loss of Entities Accounted for Using Equity Method, etc.]
14th fiscal period (as of January 31, 2023)
Not applicable.
15th fiscal period (as of July 31, 2023)
Notes are omitted because they lack significance.
[Notes on Related-Party Transactions]
1. Parent company, major corporate unitholders, etc.
14th fiscal period (from August 1, 2022 to January 31, 2023)
Not applicable.
15th fiscal period (from February 1, 2023 to July 31, 2023)
Not applicable.
2.

Affiliated companies, etc.
14th fiscal period (from August 1, 2022 to January 31, 2023)
Not applicable.
15th fiscal period (from February 1, 2023 to July 31, 2023)
Not applicable.

3.

15th fiscal period
As of July 31, 2023

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

- 18 -

15th fiscal period (from February 1, 2023 to July 31, 2023)
Not applicable.
4.

Directors, major individual unitholders, etc.
14th fiscal period (from August 1, 2022 to January 31, 2023)

Type

Director, or
close
relative of
director

Name ofcompany,
etc. orpersonAddress

Atsushi
Kato

Capital stock Description ofor investments business orin capital
occupation－－

Executive
Director of
SAR, andPresident andCEO of theAsset Manager

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

Description oftransaction

Transaction
amount(thousandyen)

Account
item

Balance at
end ofperiod(thousand
yen)

0.03%

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

Accounts
payable –others466,852(Note 2)

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

Description oftransaction

Transaction
amount(thousandyen)

Account
item

Balance at
end ofperiod(thousand
yen)

0.03%

Payment of asset
management fee
to the AssetManager(Note 1)445,612(Note 2)
(Note 3)

Accounts
payable –others456,595(Note 2)

15th fiscal period (from February 1, 2023 to July 31, 2023)

Type

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

Atsushi
Kato

Capital stock Description ofor investments business orin capital
occupation－－

Executive
Director of
SAR, andPresident andCEO of theAsset Manager

The transaction was conducted by Atsushi Kato as President and CEO of a third party (the Asset Manager), and the transaction amountis based on the terms and conditions provided in the Articles of Incorporation of SAR.
Of the amounts above, the transaction amount does not include consumption tax, while the balance at the end of the period includes
consumption tax.
The asset management fee for the 14th fiscal period includes the acquisition incentive portion included in the book value of individual
real estate, etc. in the amount of 151,540 thousand yen. The asset management fee for the 15th fiscal period includes the acquisition
incentive portion included in the book value of preferred equity securities in the amount of 15,625 thousand yen and the transfer
incentive portion for real estate, etc. in the amount of 11,500 thousand yen.

[Notes on Asset Retirement Obligations]14th fiscal period (as of January 31, 2023)
Not applicable.
15th fiscal period (as of July 31, 2023)
Not applicable.
[Notes on Investments in Rental Properties]
SAR owns rental real estate, etc. for the purpose of earning revenue from leasing. The carrying amount, amount of increase(decrease) during the period and fair value of these investments in rental properties are as follows:(Unit: thousand yen)
14th fiscal period
From: August 1, 2022
To: January 31, 2023

15th fiscal period
From: February 1, 2023
To: July 31, 2023

Balance at beginning of period

179,572,164

194,843,394

Amount of increase (decrease) during period

15,271,229(664,708)

Balance at end of period

194,843,394

194,178,685

214,581,000

215,096,000

Carrying amount

Fair value at end of period(Note 1) Carrying amount is the amount of the cost of acquisition, less accumulated depreciation.
(Note 2) Of the amount of increase (decrease) in investments in rental properties during the 14th fiscal period, the amount of increase is mainly
attributable to acquisition of real estate beneficiary interest in trust of three properties (15,409,595 thousand yen) and capital expenditures- 19 -

(605,932 thousand yen), while the amount of decrease is mainly attributable to depreciation (743,661 thousand yen). During the 15th fiscal
period, the amount of increase is mainly attributable to capital expenditures (787,991 thousand yen), while the amount of decrease is mainly
attributable to disposition of real estate beneficiary interest in trust of a property (688,594 thousand yen) and depreciation (763,353 thousandyen).
(Note 3) Fair value at the end of the period is the appraisal value by an outside real estate appraiser. Of the fair value at the end of the 14th fiscal period,that of Funabashi Hi-Tech Park Factory II is based on the transfer price (1,150,000 thousand yen) stated in the trust beneficiary interest saleand purchase agreement dated February 1, 2023 and that of Urban Park Gokokuji is based on the transfer price (1,800,000 thousand yen)stated in the trust beneficiary interest sale and purchase agreement dated March 16, 2023. In addition, of the fair value at the end of the 15th
fiscal period, that of Urban Park Gokokuji is based on the transfer price (1,800,000 thousand yen) stated in the trust beneficiary interest saleand purchase agreement dated March 16, 2023 and that of Urban Park Koenji is based on the transfer price (1,315,000 thousand yen) statedin the trust beneficiary interest sale and purchase agreement dated August 7, 2023.

Income (loss) concerning investments in rental properties is as stated in “Notes on the Statement of Income and Retained Earnings”
earlier in this document.
[Notes on Revenue Recognition]
1. Breakdown information on revenue from contracts with customers
14th fiscal period (from August 1, 2022 to January 31, 2023)(Unit: thousand yen)
Revenue from contracts withcustomers (Note)
Proceeds from sale of real estate

Sales to external customers--

419,588419,588

Other-

6,066,665

Total

419,5886,486,253

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

15th fiscal period (from February 1, 2023 to July 31, 2023)(Unit: thousand yen)
Revenue from contracts withcustomers (Note 1)

Sales to external customers

Proceeds from sale of real estate(Note 2)

414,166

Utilities income

414,166

358,375

358,375

Other-

6,174,384

Total

772,5426,946,926(Note 1) Rental revenue, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13) are excluded from the above amountas such revenue is not subject to the Revenue Recognition Accounting Standard. Revenue from contracts with customers mainly represents
proceeds from sale of real estate and utilities income.
(Note 2) Proceeds from sale of real estate is recorded as gain on sale of property in the statement of income. Therefore, the amount calculated bydeducting the cost of sale of real estate and other sale expenses from the proceeds from sale of real estate is indicated.

2. Foundational information for understanding revenue from contracts with customers
The information is as indicated in “(7) Notes on Matters Concerning Significant Accounting Policies” earlier in this document.
3.

Information on relationship of fulfillment of performance obligations based on contracts with customers with cashflow
generated from said contracts and amount and period of revenue expected to be recognized in the next fiscal period or
thereafter from contracts with customers existing at the end of the current fiscal period.

- 20 -

(1) Balance of contract assets and contract liabilities, etc.
14th fiscal period
From: August 1, 2022
To: January 31, 2023

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

73,08387,85887,85871,460Contract assets (balance at beginning of fiscal period)--

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

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

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

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

2.

Segment information
Segment information is omitted because SAR operates a single segment, which is the real estate leasing business.
Related information
14th fiscal period (from August 1, 2022 to January 31, 2023)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single product andservice category are in excess of 90% of operating revenue on the statement of income and retained earnings.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income and retained earnings.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about each major customer
Information about each major customer is omitted because all net sales to a single external customer are less than
10% of the operating revenue on the statement of income and retained earnings.
15th fiscal period (from February 1, 2023 to July 31, 2023)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single product andservice category are in excess of 90% of operating revenue on the statement of income and retained earnings.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income and retained earnings.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
- 21 -

(3) Information about each major customer
Information about each major customer is omitted because all net sales to a single external customer are less than
10% of the operating revenue on the statement of income and retained earnings.
[Notes on Per Unit Information]
14th fiscal period
From: August 1, 2022
To: January 31, 2023

15th fiscal period
From: February 1, 2023
To: July 31, 2023

Net assets per unit

53,835 yen

53,715 yen

Net income per unit

1,455 yen

1,599 yen

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

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

15th fiscal period
From: February 1, 2023
To: July 31, 2023

2,781,930

3,073,236--

2,781,930

3,073,236

1,910,903

1,921,689

Net income (thousand yen)Amount not attributable to common unitholders(thousand yen)
Net income attributable to common investment units(thousand yen)
Average number of investment units during period (units)[Notes on Significant Subsequent Events]
Issuance of new investment units
The issuance of new investment units for the purpose of acquiring real estate, etc. was resolved as follows at the Board of
Directors’ meetings held on August 7, 2023, and August 15, 2023, and payment was completed on August 21, 2023.
<Issuance of new investment units through primary offering>Number of new investment units issued:

450,311 units

Issue price (offer price):
Total issue price (total offer price):

53,235 yen per unit
23,972,306,085 yen

Issue amount (paid-in amount):
Total issue amount (total paid-in amount):

51,504 yen per unit
23,192,817,744 yen

Payment date:August 21, 2023
The proceeds from the issuance of new investment units were and will be used to partially fund the acquisition of 8 properties(total acquisition price: 46,143 million yen) acquired as of September 1, 2023, and 3 properties (total planned acquisition
price: 3,048 million yen) to be acquired as of December 1, 2023, respectively.
Asset transfer
The transfer of Urban Park Gokokuji and Urban Park Koenji have completed as follows:<Urban Park Gokokuji>
Asset transferred:

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

Contract date:
Transfer date:

March 16, 2023
August 31, 2023

Location (indication of residential address):
Buyer:

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

Transfer price:
Impact on income (loss):

1,800,000 thousand yen
Operating revenue from gain on sale of real estate is expected to be recordedin the amount of approximately 271 million yen in the fiscal period ending
January 31, 2024.
- 22 -

<Urban Park Koenji>
Asset transferred:
Contract date:

Trust beneficiary interest in which the main trust asset is domestic real estate
August 7, 2023

Transfer date:
Location (indication of residential address):

August 31, 2023
3-19-12 Koenji-kita, Suginami-ku, Tokyo

Buyer:
Transfer price:

A.D. Works Co., Ltd.
1,315,000 thousand yen

Impact on income (loss):

Operating revenue from gain on sale of real estate is expected to be recordedin the amount of approximately 109 million yen in the fiscal period ending
January 31, 2024.

- 23 -

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

Date

September 5, 2018
October 2, 2018

Event

Capital increase throughpublic offering
Capital increase throughthird-party allotment

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

Unitholders’ capital(thousand yen)
Increase(Decrease)

Remarks

Balance

66,857537,4816,584,077

52,416,747(Note 1)

3,343

540,824

329,218

52,745,966(Note 2)

August 1, 2020

Investment unit split

540,824

1,081,648-

52,745,966(Note 3)

August 1, 2020

Merger592,741

1,674,389-

52,745,966(Note 4)

115,000

1,789,389

6,369,735

59,115,701(Note 5)

132,300

1,921,689

7,007,666

66,123,367(Note 6)

August 17, 2021
August 16, 2022

Capital increase throughpublic offering
Capital increase throughpublic offering(Note 1) New investment units were issued through public offering at an issue price of 101,985 yen (paid-in amount of 98,480 yen) per unit for the
purpose of procuring funds for acquisition of new properties.
(Note 2) New investment units were issued through third-party allotment at a paid-in amount of 98,480 yen per unit for the purpose of procuring funds
for repayment of borrowings.
(Note 3) SAR has conducted an investment unit split to split one investment unit into two investment units.
(Note 4) Due to the merger dated August 1, 2020, SAR allocated and delivered 1.78 SAR investment units for every 1.0 SSR investment unit. As a result,
SAR issued 592,741 new investment units.
(Note 5) New investment units were issued through public offering at an issue price of 57,330 yen (paid-in amount of 55,389 yen) per unit for the purposeof procuring funds for acquisition of new properties.
(Note 6) New investment units were issued through public offering at an issue price of 54,795 yen (paid-in amount of 52,968 yen) per unit for the purposeof procuring funds for acquisition of new properties.

- 24 -

3.

Reference Information(1) Investment Status

Type ofasset

Geographic area
(Note 1)Primary use

14th fiscal period
As of January 31, 2023
Total amount
As a percentage
heldof total assets(million yen)(%)
(Note 2)
(Note 3)15th fiscal period
As of July 31, 2023
Total amount
As a percentage
heldof total assets(million yen)(%)
(Note 2)
(Note 3)

Greater Tokyo

56,74327.2

56,92227.2

Major Metropolitan Areas

18,5398.9

18,548

8.9Greater Tokyo

3,001

1.4

3,000

1.4

Major Metropolitan Areas

24,711

11.8

24,682

11.8

Greater Tokyo

32,22815.4

32,19015.4

Major Metropolitan Areas

6,232

3.0

6,209

3.0

Greater Tokyo

29,541

14.2

28,818

13.8

Greater Tokyo

12,632

6.1

12,6396.0

Major Metropolitan Areas

11,212

5.4

11,166

5.3

194,84393.3

194,178

92.8

-

-

1,588

0.8

400

0.2

740

0.4

Deposits and other assets

13,523

6.5

12,752

6.1

Total amount of assets

208,766

100.0

209,259

100.0

OfficeRetailRealestatein trust

Residence

Logistics facility

Hotel

SubtotalPreferred equity securities
Mezzanine loan debt

Amount(million yen)

As a percentage
of total assets(%)

Amount(million yen)

As a percentage
of total assets(%)

Total amount of liabilities (Note 4)

105,31150.4

106,034

50.7

Total amount of net assets (Note 4)

103,455

49.6

103,224

49.3(Note 1) ”Greater Tokyo” refers to Tokyo, Kanagawa, Saitama and Chiba Prefectures. The same shall apply hereinafter.
(Note 2) “Total amount held” is the carrying amount as at the date of settlement of accounts (in the case of real estate in trust,then the depreciated book value), rounded down to the nearest million yen.
(Note 3) “As a percentage of total assets” is the carrying amount of the concerned assets expressed as a percentage of the total
amount of assets, rounded to the first decimal place.
(Note 4) “Total amount of liabilities” and “Total amount of net assets” are according to total liabilities and total net assets on
the balance sheet.

- 25 -

(2) Investment Assets① Investment securities
Asset
no.

Name of the security

Type ofasset

MEZ-07

Star Asia Mezzanine Loan
Debt Investment Series 7

MEZ-08Star Asia Mezzanine Loan
Debt Investment Series 8

TK-03

GSA JP Project 1 Tokutei
Mokuteki Kaisha (TMK)
Preferred Equity Securities

Corporate
bond
Trust
beneficiaryinterest
Preferredequitysecurity

Total－

Quantity(Units)Book value(million yen)
Unit
price
Amount(yen)

Fair value(million yen)
Unit
price

AmountUnrealized
gain orloss(millionyen)

Remarks

－

－

400

－

400

－

(Note 1)
(Note 4)

－

－

340

－

340

－

(Note 2)
(Note 4)

13,328,342

119

1,588

135

1,803

－

(Note 3)(Note 5)

－

－

2,328

－

2,543

－

－

(Note 1) The underlying assets are trust beneficiary interests in a trust mainly composed of Quintessa Hotel Tokyo Haneda
Comic & Books.
(Note 2) The underlying assets are trust beneficiary interests in a trust mainly composed of Centurion Hotel Grand Akasaka.
(Note 3) The underlying assets are trust beneficiary interests in a trust mainly composed of HAKUSAN HOUSE.
(Note 4) Because interest income etc. from mezzanine loan debt are based on floating interest rates, the fair value isapproximately the same as the acquisition cost and thus stated at that acquisition cost.
(Note 5) The fair value of preferred equity securities is the amount that is attributable to the equity held by SAR out of the net
asset value of the issuer of preferred equity securities based on the appraisal value of the underlying assets.

- 26 -

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

Propertyno.
(Note 1)
OFC-01

Minami-Azabu Shibuya
Building

OFC-03

Honmachibashi Tower

OFC-04
OFC-06

Nishi-Shinjuku Matsuya
Building
Urban Center Shibuya East
(Note 6)

OFC-08

Urban Center YokohamaWest (Note 7)

OFC-09Hakata-eki East Place

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

OfficeProperty name

OFC-14OFC-15
OFC-16

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

OFC-17

Takadanobaba Access

OFC-18

Azabu Amerex BLDG.

OFC-19Hiei-Kudan BLDG.

OFC-20Urban Center ShinYokohama

OFC-21The Portal Akihabara

OFC-22

Urban Center Tachikawa

OFC-23

Urban Center Hakata

OFC-24

Urban Center Fujisawa

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

RetailSubtotal
RTL-01

La Park Kishiwada

RTL-02

Suroy Mall Chikushino

RTL-03

Seiyu Minakuchi

RTL-05

BAGUS Ikebukuro West

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

Residence

Subtotal
RSC-01

Urban Park Azabujuban

RSC-02

Urban Park Daikanyama

RSC-05

Urban Park Namba

RSC-06

Urban Park Gokokuji

RSC-07

Urban Park Kashiwa

RSC-08

Urban Park Ryokuchi Koen

RSC-09Urban Park Koenji

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

Acquisition
price(million yen)
(Note 3)

Share ofinvestment(%)(Note 4)

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

2,973

1.5

3,040

January 14, 2016

6,065

3.1

7,080

January 14, 2016

1,763

0.9

2,690

April 20, 2016

2,042

1.1

3,290

April 20, 2016

6,320

3.3

8,400

April 20, 2016

2,286

1.2

3,260

April 6, 2017

1,450

0.7

1,500

February 2, 2018

2,580

1.3

2,790

September 6, 2018

7,440

3.8

7,320

September 6, 2018

1,020

0.5

1,230

February 1, 201911,2005.8

11,700August 1, 2020

5,350

2.8

5,440

August 1, 2020

4,590

2.4

4,570

August 1, 2020

3,990

2.1

3,930

August 1, 2020

2,780

1.4

2,890

August 1, 2020

2,400

1.2

2,400

August 1, 2020

2,300

1.2

2,570

August 1, 2020

1,510

0.8

1,490

August 1, 2020

1,804

0.9

2,010

August 19, 2021

2,870

1.5

3,250

August 19, 2021

2,054

1.1

2,200

August 18, 2022

74,787

38.5

83,050

－

5,400

2.8

5,200

August 1, 2020

6,550

3.4

6,310

August 1, 2020

3,320

1.7

3,330

August 1, 2020

2,984

1.5

3,500

August 19, 2021

9,500

4.9

10,500August 18, 2022

27,75414.3

28,840

－

2,045

1.1

2,950

January 14, 2016

6,315

3.3

10,100January 14, 2016

1,490

0.8

1,540

April 20, 2016

1,460

0.8

1,570

February 1, 2017

1,186

0.6

1,200

April 6, 2017

1,550

0.8

1,730

February 2, 2018

1,167

0.6

1,180

February 2, 2018

Residence

Use

Propertyno.
(Note 1)

Property name

RSC-10Urban Park Ichigao

RSC-11

Urban Park Gyotoku

RSC-12

Shiroi Logiman

RSC-13

Urban Park Sekime

RSC-14

Urban Park Imazato

RSC-15

Urban Park Yoyogi

RSC-16

Urban Park Tokiwadai Koen

RSC-17

Urban Park Mitsuike Koen

RSC-18

Urban Park Ryogoku

RSC-19Urban Park Mizonokuchi

RSC-20Urban Park Miyamaedaira

RSC-21

Urban Park Tsurumi

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

Logistics facility

Subtotal
LGC-01

Iwatsuki Logistics

LGC-02

Yokohama Logistics

LGC-03

Funabashi Logistics

LGC-04

Baraki Logistics

LGC-05Tokorozawa Logistics

LGC-07

Funabashi Nishiura
Logistics II

LGC-08

Matsubushi Logistics

Hotel

LGC-09Funabashi Hi-Tech Park
Factory I
Subtotal

HTL-01R&B Hotel Umeda East

HTL-02

Smile Hotel Namba

HTL-03REMBRANDT STYLE Tokyo
Nishikasai

HTL-04

BEST WESTERN Yokohama

HTL-05The BREAKFAST HOTELFUKUOKA TENJIN

HTL-06

GLANSIT AKIHABARA

HTL-07REMBRANDT STYLE Tokyo
Nishikasai Grande

HTL-08

KOKO HOTEL Osaka Namba

HTL-09abeno nini (Hotel)

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

Subtotal
Total- 28 -

Acquisition
price(million yen)
(Note 3)

Share ofinvestment(%)(Note 4)

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

1,810

0.9

2,180

March 13, 2020

1,430

0.7

1,610

March 13, 2020

2,470

1.3

2,520

August 1, 2020

2,150

1.1

2,470

August 1, 2020

993

0.5

1,110

August 1, 2020

1,740

0.9

1,990

August 1, 2020

3,506

1.8

4,090

October 16, 2020

3,160

1.6

3,620

January 8, 2021

1,115

0.6

1,310

August 19, 2021

2,019

1.0

2,100

August 19, 2021

1,060

0.5

1,250

August 19, 2021

1,113

0.6

1,190

August 19, 2021

37,77919.5

45,710

－

6,942

3.6

7,690

January 14, 2016

3,560

1.8

4,330

January 14, 2016

7,875

4.1

8,950

January 14, 2016

4,700

2.4

5,230

April 6, 2017

1,300

0.7

1,550

April 6, 2017

821

0.4

891

February 2, 2018

2,755

1.4

3,310

February 2, 2018

1,710

0.9

2,070

August 1, 2020

29,66315.3

34,021

－

2,069

1.1

2,280

January 14, 2016

1,750

0.9

1,460

January 14, 2016

3,827

2.0

3,440

April 6, 2017

3,248

1.7

3,200

April 6, 2017

1,970

1.0

1,930

September 6, 2018

2,500

1.3

2,440

September 6, 2018

3,180

1.6

3,140

September 6, 2018

2,000

1.0

1,450

September 6, 2018

3,600

1.9

3,770

August 18, 2022

24,14412.4

23,110－

194,127100.0

214,731－(Note 1) “Property no.” is assigned to SAR’s investment assets by categorizing into office (OFC), retail facility (RTL), residence (RSC), logistics facility(LGC) and hotel (HTL), and numbering in order by category. The same shall apply hereinafter.
(Note 2) “Location” is the smallest independent administrative district in which each investment asset is located.
(Note 3) “Acquisition price” indicates the sale and purchase price stated in the sale and purchase agreement for each investment asset. (Not including
consumption tax and local consumption tax.) However, in the case of Minami-Azabu Shibuya Building, since the price for each investment
asset among multiple assets is not set in the sale and purchase agreement, the total sale and purchase price is divided proportionally basedon the ratio of the appraisal value of the properties at the time of acquisition and indicated as the acquisition price. The appraisal value
indicated in the real estate appraisal report with July 31, 2020, as the appraisal date, which is the receipt price, is indicated for properties
that were succeeded from SSR due to the absorption-type merger with SAR as the surviving corporation on August 1, 2020.
(Note 4) “Share of investment” is the acquisition price of the investment asset indicated as a percentage of the total of acquisition price, rounded to
the first decimal place.
(Note 5) Daiwa Real Estate Appraisal Co., Ltd., Japan Real Estate Institute and The Tanizawa Sogo Appraisal Co., Ltd. are entrusted with appraisals.
Real estate appraisal values are the figures indicated in the real estate appraisal report with January 31, 2023, as the date of value and arerounded to the nearest million yen. For details, please refer to “(d) Summary of Real Estate Appraisal Reports, Etc.”(Note 6) The name was changed on July 1, 2023 (former property name: Shibuya MK Building). The same shall apply hereinafter.
(Note 7) The name was changed on July 1, 2023 (former property name: Asahi Building). The same shall apply hereinafter.

(b) Portfolio Summarya.

By Geographic Area
Geographic area

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

Share
(%)
(Note 1)

135,426

68.9

Osaka Area, Nagoya Area
and Fukuoka Area

38,293

19.5

Other than the above

22,71011.6

196,429

100.0

Total

(Note 1) “Share” is calculated on the basis of acquisition price, rounded to the first decimal place. Accordingly, the shares
may not add up to 100%. The same shall apply hereinafter in “c. By Asset Type (Use).”(Note 2) 2 mezzanine loan debts (acquisition prices: 400 million yen, 340 million yen) and 1 preferred equity security(acquisition price: 1,562 million yen) are included.
(a) OfficeGeographic area

Acquisition price(million yen)Greater Tokyo
Major
Metropolitan
Areas

Share
(%)

56,12675.0

Osaka Area, Nagoya Area
and Fukuoka Area

11,221

15.0

Other than the above

7,440

9.9

74,787

100.0

Total
(b) Retail
Geographic area

Acquisition price(million yen)Greater Tokyo
Major
Metropolitan
Areas

Share
(%)

2,984

10.8

Osaka Area, Nagoya Area
and Fukuoka Area

9,500

34.2

Other than the above

15,27055.0

27,754

100.0

Total

- 29 -

(c) Residence
Geographic area

Acquisition price(million yen)Greater Tokyo
Major
Metropolitan
Areas

Osaka Area, Nagoya Area
and Fukuoka Area

31,596

83.6

6,183

16.4

-

-

37,779100.0

Other than the above

Total

Share
(%)

(d) Logistics facility
Geographic area

Acquisition price(million yen)Greater Tokyo
Major
Metropolitan
Areas

Share
(%)

29,663100.0

Osaka Area, Nagoya Area
and Fukuoka Area--

Other than the above--

29,663

100.0

Total
(e) Hotel
Geographic area

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

Osaka Area, Nagoya Area
and Fukuoka Area

(Note)(f)

13,495

54.2

11,38945.8--

24,884

100.0

Other than the above

Total

Share
(%)

2 mezzanine loan debts (acquisition prices: 400 million yen, 340 million yen) are included.
Student residence
Geographic area

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

Share
(%)

1,562

100.0

Osaka Area, Nagoya Area
and Fukuoka Area--

Other than the above

-

-

1,562

100.0

Total
(Note) A preferred equity security.

- 30 -

b.

By Size
Acquisition price

Number ofproperties

10 billion yen or more

Share
(%)
(Note 1)

1

1.5

10

15.4

50

76.9

Less than 1 billion yen (Note 3)

4

6.2

Total

65

100.0

5 billion yen or more
but less than 10 billion yen
1 billion yen or more
but less than 5 billion yen(Note 2)

(Note 1) “Share” is calculated on the basis of number of properties.
(Note 2) A preferred equity security is included.
(Note 3) 2 mezzanine loan debts are included.
c.

By Asset Type (Use)
Number ofproperties

Acquisition price(million yen)

Office21

74,787

38.1

Retail527,754

14.1

Residence

19

37,77919.2

Logistics facility

829,663

15.1

Hotel (Note 1)

1124,884

12.7

Student residence (Note 2)

1

1,562

0.8

Total

65

196,429

100.0

Use

Share
(%)

(Note 1) 2 mezzanine loan debts (acquisition prices: 400 million yen, 340 million yen) are included.
(Note 2) A preferred equity security.

- 31 -

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

Security andguarantee
deposits(thousandyen)(Note 3)

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

Occupancy
rate(%)(Note 6)

Propertyno.

Property nameConstruction
completion

OFC-01

Minami-Azabu Shibuya
Building

June 1993

6

99,368128,023

3,263.08

3,263.08

100.0

OFC-03

Honmachibashi Tower

February 2010

6(Note 7)249,203

260,488

10,489.58

10,489.58

100.0

OFC-04

Nishi-Shinjuku Matsuya
Building

May 1987

10

120,379

139,5213,547.74

3,547.74

100.0

OFC-06

Urban Center Shibuya East

July 1993

4

74,59994,3001,612.88

1,612.88

100.0

OFC-08

Urban Center YokohamaWest

November 1994

20

231,766

247,424

8,672.01

8,672.01

100.0

OFC-09Hakata-eki East Place

February 1986

18

118,913

107,894

4,398.07

4,633.12

94.9

July 1992

4

45,126

77,523

1,913.44

1,913.44

100.0

November 1994

1

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

100.0

15,756.65

16,960.51

92.9

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

OFC-10
OFC-11

Nihonbashi Hamacho Park
Building
Amusement Media Gakuin
HonkanOFC-12

Higashi Kobe Center Building

January 1992

57

OFC-13

Amusement Media Gakuin
ShinkanJanuary 19991

OFC-14

Seishin BLDG.

March 1989

20

198,113

328,948

5,167.20

5,616.80

92.0

October 1991

10

140,958

157,380

3,394.35

3,394.35

100.0

January 1988

8

115,699

150,123

3,250.68

3,250.68

100.0

OFC-15
OFC-16

Urban Center Kanda Sudacho
Urban Center Kanda
Tsukasamachi

321,893351,042

OFC-17

Takadanobaba Access

January 1994

8

107,193

119,648

3,691.49

3,691.49

100.0

OFC-18

Azabu Amerex BLDG.

June 1988

7

72,91863,5752,240.03

2,240.03

100.0

OFC-19Hiei-Kudan BLDG.

September 1991

10

69,319101,8612,298.86

2,298.86

100.0

OFC-20Urban Center Shin-Yokohama

March 1992

17

87,471

93,8784,057.89

4,057.89

100.0

OFC-21The Portal Akihabara

May 2002

7

33,46442,767815.38941.6986.6

OFC-22

Urban Center Tachikawa

May 1990

4

51,351

89,671

2,799.92

3,400.47

82.3

OFC-23

Urban Center Hakata

August 2020

1

77,043

149,289

2,639.18

2,639.18

100.0

OFC-24

Urban Center Fujisawa

April 1991

6

81,57090,7703,298.18

3,396.17

97.1

RTL-01

La Park Kishiwada

August 1994

51
(Note 10)528,144

238,418

40,566.34(Note 10)41,001.03(Note 10)98.9

RTL-02

Suroy Mall Chikushino

June 2007

19

258,010412,334

29,364.96

31,088.53

94.5

RTL-03

Seiyu Minakuchi

May 1999

1

23,814.87

100.0

RTL-05

BAGUS Ikebukuro West

November 1992

1

1,497.45

100.0

RTL-06abeno nini (Retail)

January 20125

221,344

150,698

3,481.03

3,481.03

100.0

RSC-01

Urban Park Azabujuban

November 1999

42

57,632

10,604

1,902.48

1,986.76

95.8

RSC-02

Urban Park Daikanyama

Existing:
November 1982
Newly built:
May 2006

69

201,243

79,111

5,799.23

5,977.18

97.0

RSC-05

Urban Park Namba

January 2013

113

45,672120

2,493.61

2,584.81

96.5

RSC-06

Urban Park Gokokuji

February 1990

105

47,591

3,058

1,865.61

1,964.04

95.0

RSC-07

Urban Park Kashiwa

August 199740

39,291

8,121

2,954.77

2,954.77

100.0

RSC-08

Urban Park Ryokuchi Koen

March 1989

57

60,731

11,584

5,261.08

5,508.94

95.5- 32 -

Not disclosed Not disclosed
23,814.87(Note 9)(Note 9)Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)Property
no.

Property nameConstruction
completion

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

Security andguarantee
deposits(thousandyen)(Note 3)

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

Occupancy
rate(%)(Note 6)

RSC-09Urban Park Koenji

October 1987

74

36,106

3,781

1,317.13

1,365.48

96.5

RSC-10Urban Park Ichigao

July 1998

61

60,074

18,193

4,322.62

4,322.62

100.0

RSC-11

Urban Park Gyotoku

March 1995

38

37,816

19,6542,494.76

2,976.36

83.8

RSC-12

Shiroi Logiman

May 1995

294

141,678

12,313

21,597.32

21,884.21

98.7

RSC-13

Urban Park Sekime

August 1989

125

88,0779,306

7,561.50

7,693.13

98.3

RSC-14

Urban Park Imazato

December 1991

64

39,316

1,041

4,366.82

4,648.64

93.9

RSC-15

Urban Park Yoyogi

September 201727

39,871

6,171

1,245.17

1,286.50

96.8

RSC-16

Urban Park Tokiwadai Koen

February 1994

137

146,106

30,272

13,860.00

14,058.00

98.6

RSC-17

Urban Park Mitsuike Koen

March 1992

126

127,538

28,334

9,636.00

10,362.00

93.0

RSC-18

Urban Park Ryogoku

October 1997

32

36,7377,837

2,304.53

2,304.53

100.0

RSC-19Urban Park Mizonokuchi

August 1988

75

63,5705,597

4,113.41

4,160.00

98.9

RSC-20Urban Park MiyamaedairaJune 2021

48

32,976

3,566

1,935.62

1,957.97

98.9

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

100.0

30,190.81

30,190.81

100.0

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

100.0

38,086.56

94.7

12,126.28

100.0

5,994.75

100.0

6,315.87

100.0

19,833.47

100.0

8,340.98

100.0

-

-

RSC-21

Urban Park Tsurumi

February 1994

1

LGC-01

Iwatsuki Logistics

October 20143

LGC-02

Yokohama Logistics

October 1994

1

LGC-03

Funabashi Logistics

Building 1:
September 1992
Building 2:
August 19976

LGC-04

Baraki Logistics

August 20152

LGC-05Tokorozawa Logistics

April 19991

LGC-07

Funabashi Nishiura Logistics II

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

LGC-08

Matsubushi Logistics

March 1997

1

May 2003

1

September 2001-

LGC-09
LGC-10

Funabashi Hi-Tech Park
Factory I
Funabashi Hi-Tech Park
Factory II (Note 11)200,080

265,877

97,014

91,16636,081.45

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

October 2000

1

65,21273,4353,940.93

3,940.93

100.0

HTL-02

Smile Hotel Namba

February 2008

1

40,394-

1,711.42

1,711.42

100.0

HTL-03REMBRANDT STYLE Tokyo
Nishikasai

March 1991

1

84,60084,6005,293.88

5,293.88

100.0

HTL-04

BEST WESTERN Yokohama

September 1987

1

80,40080,4004,686.09

4,686.09

100.0

HTL-05The BREAKFAST HOTELFUKUOKA TENJIN

February 2017

1

2,281.49

100.0

HTL-06

GLANSIT AKIHABARA

September 2017

1

1,089.06

100.0

HTL-07REMBRANDT STYLE Tokyo
Nishikasai Grande

February 20171

70,002

116,670

2,755.19

2,755.19

100.0

HTL-08

KOKO HOTEL Osaka Namba

April 20171

53,142-

2,061.38

2,061.38

100.0

HTL-09Abeno nini (Hotel)

January 20121

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

100.0

459,121.82

97.9

Total

1,855

- 33 -

Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)Not disclosed Not disclosed Not disclosed(Note 9)(Note 9)(Note 9)6,503,195

5,969,822

449,280.81

(Note 1)“Number of tenants” is the number of tenants (excluding parking) under the lease agreement stated in the leaseagreement for each investment asset as of July 31, 2023. If a single tenant is leasing multiple rental units in an
investment asset, the tenant is counted as 1 tenant for the concerned investment asset. If a single tenant is leasing
rental units across multiple investment assets, the tenant is counted as separate tenants and the sum total numberof tenants is stated in the total column. Furthermore, in cases where a pass-through-type master lease agreement
under which rent from end-tenants is received in principle (“pass-through-type master lease”) has been concluded
for the concerned investment asset, the total number of end-tenants is stated. In cases where a master leaseagreement agreeing to the effect that the rent under the master lease agreement shall be a fixed rent (“rentguaranteed type master lease”) has been concluded for the concerned investment asset, the number of tenants is(Note 2)

1 and the sum total of these is stated.
“Operating revenue from leasing” is rental revenue, common area maintenance revenue, parking revenue andother revenue generated from real estate held during the fiscal period under review (including other lease businessrevenue).

(Note 3)

“Security and guarantee deposits” is the sum total amount of tenant security and guarantee deposits required
based on the lease agreement (including deposits based on parking, antenna, rooftop and other agreements; theamount after depreciation) for each investment asset as of July 31, 2023 (limited to those occupied as of said date).
Furthermore, in cases where a pass-through-type master lease agreement has been concluded for the concerned
investment asset, it is the sum total amount of tenant security and guarantee deposits under lease agreements
concluded with end-tenants.

(Note 4)

“Leased area” is the sum total of the leased area stated in the lease agreement for each investment asset as of July
31, 2023. Furthermore, in cases where a master lease agreement has been concluded for the concerned investment
asset, it is the sum total of the leased area under lease agreements concluded with end-tenants for properties
under a pass-through-type master lease, and it is the leased area under the master lease agreement for properties(Note 5)under a rent-guaranteed type master lease.
“Leasable area” is the floor area regarded as being available for leasing based on the lease agreement or building(Note 6)drawing, etc. of the building for each investment asset as of July 31, 2023.
“Occupancy rate” is the ratio of leased area to leasable area for each investment asset as of July 31, 2023, rounded
to the first decimal place. In addition, in the total column, it is the ratio of the sum total of leased area to the sum
total of leasable area for each investment asset, rounded to the first decimal place.

(Note 7)(Note 8)Of the tenants of the property, a single company leases all 36 units of the residential portion, of which 30 units areunder a rent-guaranteed type master lease agreement and 6 units are under a pass-through-type master leaseagreement.
In the table, “Number of tenants,” “Security and guarantee deposits,” “Leased area” and “Occupancy rate” arebased on lease agreements valid as of July 31, 2023, even if there is a notice of cancellation or termination of leaseagreements with end-tenants or unpaid rent.

(Note 9) Not disclosed, because consent for disclosure has not been obtained from the tenants.
(Note 10) The number of tenants and each area related to the installation of ATM are not included.
(Note 11) Funabashi Hi-Tech Park Factory II was transferred on February 20, 2023.

- 34 -

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

Use

OfficePropertyno.

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

Income approach
Direct capitalization
methodDCF
methodIndicatedvalue(million yen)

Cap rate(%)

Indicated Discount
value
rate
(million yen)(%)

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

OFC-01

Minami-Azabu Shibuya Building

Daiwa

3,040

3,120

3.9

3,000

3.5

4.1

139

4.7

OFC-03

Honmachibashi Tower

Daiwa

7,080

7,040

4.1

7,090

3.9

4.3

307

5.1

OFC-04

Nishi-Shinjuku Matsuya Building

Daiwa

2,690

2,620

4.1

2,720

3.9

4.3

122

6.9

OFC-06

Urban Center Shibuya East

JREI

3,290

3,330

3.3

3,240

3.1

3.4

114

5.6

OFC-08

Urban Center Yokohama West

JREI

8,400

8,480

3.3

8,320

3.1

3.4

311

4.9

OFC-09Hakata-eki East Place

Daiwa

3,260

3,270

4.5

3,260

4.3

4.7

153

6.7

OFC-10Nihonbashi Hamacho Park Building Daiwa

1,500

1,490

4.3

1,510

4.1

4.5

66

4.5

OFC-11

Amusement Media Gakuin
Honkan

Daiwa

2,790

2,850

3.5

2,760

3.3

3.7

103

4.0

OFC-12

Higashi Kobe Center Building

Tanizawa

7,320

7,260

4.9

7,340

5.0

5.1

404

5.4

OFC-13

Amusement Media Gakuin
Shinkan

JREI

1,230

1,240

3.2

1,210

3.0

3.3

41

4.0

OFC-14

Seishin BLDG.

JREI

11,70011,9003.3

11,500

3.0

3.3

399

3.6

OFC-15

Urban Center Kanda Suda-cho

Tanizawa

5,440

5,540

3.4

5,400

3.5

3.6

199

3.7

OFC-16

Urban Center Kanda Tsukasamachi Tanizawa

4,570

4,740

3.5

4,500

3.6

3.7

172

3.8

OFC-17

Takadanobaba Access

Tanizawa

3,930

4,130

3.6

3,850

3.7

3.8

154

3.9

OFC-18

Azabu Amerex BLDG.

JREI

2,890

2,890

3.4

2,890

3.1

3.4

103

3.7

OFC-19Hiei-Kudan BLDG.

Tanizawa

2,400

2,480

3.4

2,360

3.5

3.6

87

3.6

OFC-20Urban Center Shin-Yokohama

JREI

2,570

2,580

4.2

2,560

3.9

4.3

114

5.0

OFC-21The Portal Akihabara

Tanizawa

1,490

1,540

3.6

1,470

3.7

3.8

57

3.8

OFC-22

Urban Center Tachikawa

Daiwa

2,010

2,010

4.4

2,010

4.2

4.6

94

5.2

OFC-23

Urban Center Hakata

JREI

3,250

3,270

3.8

3,220

3.6

3.9

124

4.3

OFC-24

Urban Center Fujisawa

JREI

2,200

2,220

4.8

2,180

4.6

5.0

115

5.6

RTL-01

La Park Kishiwada

RTL-02

Suroy Mall Chikushino

RTL-0383,05084,000-82,390

-

-

3,380

4.5

JREI

5,200

5,200

6.3

5,190

6.1

6.5

378

7.0

Tanizawa

6,310

6,500

5.7

6,230

5.8

5.9

383

5.8

Seiyu Minakuchi

JREI

3,330

3,360

6.7

3,300

6.5

7.0

246

7.4

RTL-05

BAGUS Ikebukuro West

JREI

3,500

3,540

3.4

3,450

3.2

3.5

123

4.1

RTL-06abeno nini (Retail)

JREI

10,50010,7003.7

10,200

3.5

3.9

397

4.2

28,84029,300-28,370

-

-

1,526

5.5

JREI

2,950

2,980

2.9

2,910

2.7

3.0

90

4.4

Subtotal

RetailSubtotal

Residence

RSC-01

Urban Park Azabujuban

RSC-02

Urban Park Daikanyama

JREI

10,100

10,200

2.8

9,960

2.6

2.9

301

4.8

RSC-05

Urban Park Namba

Daiwa

1,540

1,560

4.6

1,530

4.4

4.8

74

5.0

RSC-06

Urban Park Gokokuji

JREI

1,570

1,580

3.5

1,550

3.3

3.6

61

4.2

RSC-07

Urban Park Kashiwa

Tanizawa

1,200

1,210

4.3

1,190

4.4

4.5

57

4.8

RSC-08

Urban Park Ryokuchi Koen

Tanizawa

1,730

1,740

4.4

1,720

4.5

4.6

87

5.6

RSC-09Urban Park Koenji

Tanizawa

1,180

1,200

3.8

1,170

3.9

4.0

52

4.4

RSC-10Urban Park Ichigao

JREI

2,180

2,190

3.7

2,160

3.5

3.8

87

4.8

RSC-11

Urban Park Gyotoku

Tanizawa

1,610

1,640

3.9

1,590

4.0

4.1

67

4.7

RSC-12

Shiroi Logiman

Tanizawa

2,520

2,470

5.0

2,540

5.1

5.2

140

5.7

RSC-13

Urban Park Sekime

Tanizawa

2,470

2,480

4.2

2,470

4.3

4.4

114

5.3

RSC-14

Urban Park Imazato

Tanizawa

1,110

1,120

4.4

1,100

4.5

4.6

54

5.5

RSC-15

Urban Park Yoyogi

JREI

1,990

2,010

3.1

1,970

2.8

3.2

63

3.6

RSC-16

Urban Park Tokiwadai Koen

Tanizawa

4,090

4,110

4.1

4,080

4.2

4.3

188

5.4

RSC-17

Urban Park Mitsuike Koen

Tanizawa

3,620

3,630

4.3

3,610

4.4

4.5

169

5.3

- 35 -

Summary of appraisal reports

Use

Residence

Propertyno.

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

Direct capitalization
methodDCF
methodIndicatedvalue(million yen)

Cap rate(%)

Indicated Discount
value
rate
(million yen)(%)

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

RSC-18

Urban Park Ryogoku

Tanizawa

1,310

1,320

3.7

1,310

3.8

3.9

51

4.6

RSC-19Urban Park Mizonokuchi

Tanizawa

2,100

2,130

4.2

2,090

4.3

4.4

94

4.6

RSC-20Urban Park Miyamaedaira

Daiwa

1,250

1,270

4.0

1,240

3.8

4.2

52

4.9

RSC-21

Urban Park Tsurumi

Tanizawa

1,190

1,190

4.2

1,190

4.6

4.4

53

4.8

45,71046,030-45,380

-

-

1,853

4.9

LGC-01

Iwatsuki Logistics

Daiwa

7,690

7,780

4.2

7,650

4.0

4.4

333

4.8

LGC-02

Yokohama Logistics

Daiwa

4,330

4,350

4.0

4,320

3.7

4.2

204

5.7

LGC-03

Funabashi Logistics

Daiwa

8,950

9,010

4.1

8,930

3.9

4.3

418

5.3

LGC-04

Baraki Logistics

Tanizawa

5,230

5,410

3.5

5,150

3.4

3.7

191

4.1

LGC-05Tokorozawa Logistics

JREI

1,550

1,570

4.6

1,520

4.1

4.8

75

5.8

LGC-07

Funabashi Nishiura Logistics II

Daiwa

891

891

5.4

891

5.2

5.6

57

7.0

LGC-08

Matsubushi Logistics

JREI

3,310

3,330

4.6

3,280

4.1

4.9

158

5.7

LGC-09Funabashi Hi-Tech Park Factory I

JREI

Subtotal

Logistics
facility

Income approach

Subtotal

2,070

2,100

6.4

2,030

6.3

6.7

135

7.9

34,021

34,441-

33,771

-

-

1,572

5.3

HTL-01R&B Hotel Umeda East

Daiwa

2,280

2,290

4.6

2,270

4.4

4.8

114

5.5

HTL-02

Smile Hotel Namba

Daiwa

1,460

1,470

4.7

1,460

4.5

4.9

75

4.3

HTL-03REMBRANDT STYLE Tokyo
Nishikasai

JREI

3,440

3,500

4.3

3,380

4.1

4.5

158

4.1

HTL-04

BEST WESTERN Yokohama

JREI

3,200

3,240

4.4

3,150

4.2

4.6

147

4.5

HTL-05The BREAKFAST HOTEL FUKUOKA
Tanizawa
TENJIN

1,930

1,990

4.4

1,910

4.4

4.6

88

4.5

HTL-06

GLANSIT AKIHABARA

Tanizawa

2,440

2,500

3.9

2,410

3.8

4.1

98

3.9

HTL-07REMBRANDT STYLE Tokyo
Nishikasai Grande

Tanizawa

3,140

3,150

4.0

3,130

3.9

4.2

126

4.0

HTL-08

KOKO HOTEL Osaka Namba

Daiwa

1,450

1,450

4.5

1,450

4.1

4.5

72

3.6

HTL-09abeno nini (Hotel)

JREI

3,770

3,780

4.5

3,750

3.8

4.2

175

4.9

23,11023,370-22,910

-

-

1,053

4.4

214,731

217,141-

212,821

-

-

9,384

4.8

Hotel

Subtotal
Total(Note 1) Under “Appraisal firm,” “Daiwa,” “JREI,” and “Tanizawa” stand for Daiwa Real Estate Appraisal Co., Ltd., Japan Real
Estate Institute, and The Tanizawa Sogo Appraisal Co., Ltd., respectively.
(Note 2) “Appraisal value” is as of July 31, 2023, as the date of value.
(Note 3) “NOI” is net operating income calculated under the direct capitalization method stated in the appraisal report,
rounded to the nearest million yen.
(Note 4) “Appraisal NOI yield” is based on net operating income calculated under the direct capitalization method stated in
the appraisal report and expressed as a percentage of acquisition price, rounded to the first decimal place.

- 36 -

(e) Information on Major Real Estate Properties
Of investment assets, there is no property that falls under the category of major real estate properties (buildings/facilities
pertaining to land recognized to be used collectively, of which total rental revenue accounts for 10% or more of the sum totalof total rental revenue of investment assets) as of July 31, 2023. Of investment assets, the following are top five properties interms of total rental revenue as of July 31, 2023.
Changes in occupancy rate (%) (Note)
July 31, 2021
January 31, 2022
July 31, 2022
January 31, 2023
July 31, 2023
La Park Kishiwada

99.0

98.7

99.5

99.4

98.9

Suroy Mall Chikushino

97.6

99.7

96.3

96.3

94.5

Higashi Kobe Center
Building

85.1

85.3

86.6

89.2

92.9

Funabashi Logistics

91.6

91.6

91.6

94.7

94.7

-

-

-

100.0

100.0

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

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

Not disclosed (Note 3)

Iwatsuki Logistics

Not disclosed (Note 3)

6.5

2

Seiyu Co., Ltd.

Seiyu Minakuchi

23,814.87

5.2

3

Not disclosed (Note 3)

Funabashi Logistics

Not disclosed (Note 3)

4.8

4

Scroll360 Corporation

Matsubushi Logistics

19,833.47

4.3

5

Not disclosed (Note 3)

Yokohama Logistics

Not disclosed (Note 3)

4.0

6

Nagasakiya Co., Ltd.

La Park Kishiwada

15,356.34

3.3

7

Rembrandt Inn

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

12,735.16

2.8

8

Not disclosed (Note 3)

Funabashi Hi-Tech Park Factory I

Not disclosed (Note 3)

1.8

9

Mr Max Holdings Ltd.

Suroy Mall Chikushino

7,997.08

1.7

10

Sakoda Co., Ltd.

Suroy Mall Chikushino

Not disclosed (Note 3)

1.7

165,428.25

36.0

Total of the top 10 tenants(Note 1) “Leased area” is the sum total of the leased area stated in the lease agreement for each investment asset as ofJuly 31, 2023.
(Note 2) “As a percentage of total leasable area” is the area leased to the tenant expressed as a percentage of the sum
total of leasable area of all investment assets, rounded to the first decimal place.
(Note 3) Not disclosed, because consent for disclosure has not been obtained from the end-tenants, etc.

- 37 -

(g) Capital Expendituresa.

Schedule of Capital Expenditures for the 16th fiscal period
The following are the principal capital expenditures arising from renovation construction works, etc. currently planned
for the assets held by SAR as of July 31, 2023. Please note that the expected construction amounts include portions
that are expensed as a separate account item of accounting costs.

Name of real estate, etc.
(Location)

PurposeScheduled period

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

Suroy Mall Chikushino(Chikushino City, Fukuoka)

Store compartment rental
work

From: Aug. 2023
To: Jan. 2024

100,000－－

Higashi Kobe Center Building(Kobe City, Hyogo)

Elevator renewal work

From: Nov. 2022
To: Oct. 2023

99,000－－Urban Center Yokohama
West(Yokohama City, Kanagawa)Switching to LED lighting at
common area

From: Sep. 2023
To: Dec. 2023

39,000－－

Seishin BLDG.
(Shinjuku Ward, Tokyo)

Elevator renewal work

From: Aug. 2023
To: Sep. 2023

34,845－－Air-conditioning equipment
upgrading work

From: Aug. 2023
To: Jan. 2024

28,000－－Air-conditioning equipment
upgrading work

From: Aug. 2023
To: Jan. 2024

26,880－－

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

From: Aug. 2023
To: Nov. 2023

25,800－－

Funabashi Logistics(Funabashi City, Chiba)

Refrigeration equipment
upgrading work

From: Aug. 2023
To: Jan. 2024

25,000－－

La Park Kishiwada(Kishiwada City, Osaka)

Exterior wall renovation
work

From: Jul. 2023
To: Sep. 2023

23,000－－Higashi Kobe Center Building(Kobe City, Hyogo)

Mechanical parking
renovation work

From: Aug. 2023
To: Jan. 2024

22,910－－Urban Center Tachikawa(Tachikawa City, Tokyo)

Common area renewal work

From: Dec. 2023
To: Jan. 2024

22,700－－Urban Center Tachikawa(Tachikawa City, Tokyo)

Elevator renewal work

From: Aug. 2023
To: Nov. 2023

20,000－－

Funabashi Hi-Tech Park
Factory I(Funabashi City, Chiba)
Matsubushi Logistics(Kitakatsushika-gun,
Saitama)- 38 -

b.

Capital Expenditures during the 15th fiscal period
The following summarizes the primary construction works that constitute capital expenditures implemented for theassets held by SAR as of July 31, 2023, during the 15th fiscal period. Capital expenditures for the 15th fiscal periodamounted to 787,991 thousand yen and, when combined with the 308,817 thousand yen in repair expenses charged
to the same period, it totals 1,096,808 thousand yen in construction works implemented.
Name of real estate, etc.
(Location)

Construction costs(thousand yen)

Purpose

PeriodREMBRANDT STYLE Tokyo
Nishikasai(Edogawa Ward, Tokyo)

Water heater/cooler renewal
work

From: Mar. 2023
To: Jul. 2023

43,745

Higashi Kobe Center Building(Kobe City, Hyogo)

Elevator renewal work

From: Mar. 2023
To: Apr. 2023

38,658Higashi Kobe Center Building(Kobe City, Hyogo)

Mechanical parking component
replacement work

From: Mar. 2023
To: Jun. 2023

37,182

Seishin BLDG.
(Shinjuku Ward, Tokyo)

Entrance renewal work (1F)

From: Jun. 2023
To: Jul. 2023

36,345

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

From: Jun 2023
To: Jul. 2023

26,970

Matsubushi Logistics(Kitakatsushika-gun, Saitama)

Air-conditioning equipment
upgrading work (phase 1)

From: May 2023
To: Jun. 2023

25,948

Urban Center Fujisawa(Fujisawa City, Kanagawa)

Women’s restroom renewal
work (3F-8F)

From: Jun. 2023
To: Jul. 2023

25,127

La Park Kishiwada(Kishiwada City, Osaka)West exterior wall renovation
work (phase 2)

From: Feb. 2023
To: Jul. 2023

24,151Seishin BLDG.
(Shinjuku Ward, Tokyo)

Common area renewal work
(3F, 4F, 9F)

From: May. 2023
To: Jun. 2023

21,513

Urban Center Tachikawa(Tachikawa City, Tokyo)

Restroom renewal work (1F, 2F)

From: Jun. 2023
To: Jul. 2023

20,123－－

488,226

OthersTotal

787,991- 39 -

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

Officetotal

Retailtotal

Residence
total

Logistics
facility
total

Hotel
total

Portfolio
total

2,383,090

1,233,536

1,337,505

964,998

584,065

6,503,195

2,190,554
192,535

1,116,740
116,795

1,281,422
56,082875,448
89,550584,065-

6,048,231
454,964

771,943

500,759

409,890

192,559

106,064

1,981,218

175,417
176,505
189,611
109,612
10,563
4,560
105,672
1,611,146
279,344

146,536
149,077
87,76334,0404,250
2,482
76,608732,776
98,48990,492
21,67287,278110,6588,950
3,394
87,444
927,614148,260

32,39342,056
77,63828,789
3,340
1,814
6,525
772,439
146,285

8,076
450,70825,715
3,550
1,071
16,938478,000
90,973452,917389,316
493,000
308,81730,653
13,322
293,190
4,521,977
763,353

1,331,802

634,286

779,353

626,153

387,026

3,758,623

467,754
1,143,392
74,78775,47083,05068,418664,357
27,754
27,683
28,84087,205
840,40937,77938,39945,710112,387
660,052
29,66328,81834,021

52,225425,774
24,14423,805
23,110787,991
3,733,985
194,127
194,178
214,731

93.1%
92.8%
93.7%
94.3%
96.9%

98.8%
99.4%
98.6%
98.6%
97.9%

94.4%
95.1%
97.5%
97.5%
97.1%

97.8%
97.8%
97.8%
98.6%
98.6%

100.0%
100.0%
100.0%
100.0%
100.0%

96.6%
96.7%
97.2%
97.6%
97.9%

- 40 -