(REIT) Financial Report for Fiscal Period Ended July 31, 2020
September 14, 2020
Stock Exchange Listing: Tokyo Stock Exchange
URL: http://starasia-reit.com

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 16, 2020
October 28, 2020

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, 2020 (from February 1, 2020 to July 31, 2020)(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. 2020
3,996
23.8
2,131
23.8
1,857
24.3
1,857
24.3
Ended Jan. 2020
3,227
(14.7)
1,721(22.7)
1,494(23.9)
1,493(24.0)Net income
per unit

Ratio of ordinary income Ratio of ordinary income
to total assets
to operating revenue
yen
%
%
%
1,716
3.4
1.7
46.5
Ended Jul. 2020
Ended Jan. 2020
1,381
2.7
1.4
46.3
(Note) SAR has conducted an investment unit split (the “Investment Unit Split”) to split one investment unit into two investment
units, with July 31, 2020, as the record date and August 1, 2020, as the effective date for the Investment Unit Split. Net income
per unit is calculated assuming that the Investment Unit Split was conducted at the beginning of the fiscal period ended
January 31, 2020.
Fiscal period

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

Ratio of cash
distribution to
net assetsyenmillion yen

yenmillion yen%%

Ended Jul. 2020

3,436

1,858

-

-

100.1

3.4

Ended Jan. 2020

2,788

1,507

-

-

100.9

2.8

(Note)

Total cash distribution for the fiscal period ended January 31, 2020, differs from net income due to reversal of internal reserve.

(3) Financial Position
Fiscal period

Total assets
Net assets
Equity ratio
Net assets per unit
million yen
million yen%
yen
Ended Jul. 2020
113,035
54,61448.3
50,492Ended Jan. 2020
109,649
54,29949.5
50,200(Note) Net assets per unit is calculated assuming that the Investment Unit Split was conducted at the beginning of the fiscal period
ended January 31, 2020.
(4) Status of Cash Flows
Fiscal period

Ended Jul. 2020
Ended Jan. 2020

Net cashprovided by (used in)operating activities
million yen
3,268
1,891

Net cashprovided by (used in)investing activities
million yen(3,753)
(144)

－

1 －

Net cashprovided by (used in)financing activities
million yen
1,232(1,960)Cash and cash equivalents
at end of period
million yen
6,219
5,471

2. Management Status Forecast for Fiscal Period Ending January 31, 2021 (from August 1, 2020 to January 31, 2021) and Fiscal PeriodEnding July 31, 2021 (from February 1, 2021 to July 31, 2021)(% figures are the rate of period-on-period increase (decrease))
Fiscal period

Operating revenue

million yen
Ending Jan. 2021
Ending Jul. 2021

6,613
5,486

Operating income% million yen
65.5(17.0)

3,245
2,694

Ordinary income% million yen
52.3(17.0)

2,777
2,258

Net income% million yen
49.5(18.7)

11,6702,257

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

528.4
(80.7)

1,658
1,455

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, 2021:
Expected total number of investment units issued and outstanding at end of period 1,674,389 units
Forecast net income per unit 6,969 yen
Fiscal period ending July 31, 2021:
Expected total number of investment units issued and outstanding at end of period 1,674,389 units
Forecast net income per unit 1,348 yen(Note 1) Cash distribution per unit calculated using the total number of investment units issued and outstanding as of the dateof this report (1,674,389 units).
(Note 2) Since the amount excluding a gain on negative goodwill is assumed to be distributed in the fiscal period ending January
31, 2021, cash distribution per unit differs from forecast net income per unit.
* 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, 2020
540,824 units
Fiscal period ended Jan. 31, 2020
540,824 units② Number of own investment units at end of period
Fiscal period ended Jul. 31, 2020
0 units
Fiscal period ended Jan. 31, 2020
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 20.
* 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, 2021, and Fiscal Period Ending
July 31, 2021” 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, 2021, and Fiscal Period Ending July 31, 2021
Item

Assumptions

Calculation period➢ Fiscal period ending January 31, 2021: August 1, 2020 – January 31, 2021 (184 days)➢ Fiscal period ending July 31, 2021: February 1, 2021 – July 31, 2021 (181 days)➢ Concerning the absorption-type merger (the “Merger”) with SAR as the surviving corporation and Sakura
Sogo REIT Investment Corporation (“SSR”) as the dissolving corporation effectuated on August 1, 2020, it
is assumed that the Accounting Standard for Business Combinations (ASBJ Statement No. 21, revised
January 16, 2019) (the “Business Combinations Accounting Standard”) will be applied to the Merger, andthe Merger will be accounted for under the purchase method, with SAR as the acquiring entity and SSR as
the acquired entity.
➢ It is assumed that, with regard to the assets held by SAR as of the date of this report (54 real estate trust
beneficiary interests (of which 1 is quasi co-ownership interest of 60%), 4 mezzanine loan debts, and 2
equity investments in silent partnerships (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 equity investment in silent partnership being referred as “Currently Held Assets (Silent
Partnership)”)), SAR will sell the real estate trust beneficiary interest in respect to Alphabet Seven (the“Asset Planned to Be Transferred”) as described in <Transfer> below.

Assets undermanagement<Transfer>
Name of property: Alphabet Seven (quasi co-ownership interest: 60%)
Scheduled date of transfer: December 1, 2020
➢ It is assumed that there will be no change in assets under management (new property acquisitions, salesof the existing properties, etc.) other than the transfer of the Asset Planned to Be Transferred throughthe end of the fiscal period ending July 31, 2021.
➢ However, in reality Assets under management may change.

Operating revenues

Operating expenses➢ Rent revenues from Currently Held Assets (Real Estates) are calculated based on the details stated in thelease agreements effective as of the date of this report, taking into consideration factors such as market
movements. It is also assumed that there will be no arrears or non-payment of rent by tenants.
➢ Interest revenues or dividend revenues from Currently Held Assets (Mezzanine) are calculated based onoutlines, trust agreements or loan agreements which define contents of Currently Held Assets(Mezzanine) that are effective as of the date of this report. It is also assumed that no interest payments
or dividend payments will be unpaid.
➢ Dividend revenues from Currently Held Assets (Silent Partnership) are calculated as an estimate based on
the assumption that the real estate underlying the cash flow will maintain stable operations.
➢ Gains on sale of the Asset Planned to Be Transferred are expected to be 970 million yen for the fiscal
period ending January 31, 2021.
➢ 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 424 million yen in
the fiscal period ending January 31, 2021, and to be 427 million yen in the fiscal period ending July 31,
2021. With respect to real estate trust beneficiary interests, fixed property taxes, city planning taxes, andother public charges in the fiscal year will be settled with the seller on a pro rata basis based on thenumber of days of ownership at the time of acquisition of the properties. However, as SAR includes such
settlement amounts in the acquisition cost, fixed property taxes, city planning taxes, and other publiccharges for fiscal year 2020 related to the acquisition of Urban Park Ichigao and Urban Park Gyotoku in
March 2020 will not be recorded as expenses for the fiscal period ending January 31, 2021. Fixed property
taxes, city planning taxes, and other public charges for these two properties are expected to be recorded
as expenses from the fiscal period ending July 31, 2021.
➢ 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”),
141 million yen is expected for the fiscal period ending January 31, 2021, and 160 million yen is expected
for the fiscal period ending July 31, 2021. However, the actual expenditures for repair and maintenancefor the fiscal periods could differ significantly from the estimated amounts, as urgent expenditures due todamage to buildings may arise due to unexpected factors, and because generally speaking such
expenditure amounts generally tend to vary significantly from year to year, and do not arise regularly.
➢ Depreciation is calculated using the straight-line method including for ancillary costs and is expected to
be 632 million yen for the fiscal period ending January 31, 2021, and 646 million yen for the fiscal period
ending July 31, 2021.
➢ Operating expenses other than rent business related expenses are expected to be 1,151 million yen in the
－

3 －

Item

Assumptions
fiscal period ending January 31, 2021, and 515 million yen in the fiscal period ending July 31, 2021.
➢ Operating expenses other than rent business related expenses mentioned above include expected
merger-related temporary expenses for the Merger of 511 million yen for the fiscal period ending January
31, 2021 (including a merger fee of 313 million yen to be paid by SAR to the Asset Manager).

NOI(Net Operating
Income)➢ Total NOI of the entire portfolio is expected to be 4,035 million yen for the fiscal period ending January
31, 2021, and 3,831 million yen for the fiscal period ending July 31, 2021.
➢ NOI is calculated by using the following calculation method.
NOI = rent revenue – rent expenses (excluding depreciation)

Non-operating
expenses➢ The sum of interest expenses and other financing-related expenses is expected to be 468 million yen in
the fiscal period ending January 31, 2021, and 436 million yen in the period ending July 31, 2021.
➢ Within other financing-related expenses noted above, temporary expenses to arise in relation torefinancing described under “Debt Financing” below of 75 million yen for the fiscal period ending January
31, 2021, and 45 million yen for the fiscal period ending July 31, 2021, are expected.

Negative goodwill➢ Negative goodwill estimated from the Merger is 8,893 million yen, and the gain on negative goodwill will
be recorded in lump sum as extraordinary income in the fiscal period ending January 31, 2021, in
accordance with the Business Combinations Accounting Standard.
➢ The above amount of gain on negative goodwill is based on assumption that total accepted assets andtotal assumed liabilities from SSR, the acquired entity under the Business Combinations AccountingStandard, will be 67,951 million yen and 33,925 million yen, respectively, and acquisition cost of the
Merger will be 25,132 million yen (calculated based on SAR’s investment unit price (closing price) as ofJuly 31, 2020). The amounts are estimates and subject to change.

Debt financing➢ As of the date of this report, SAR has outstanding debt of 83,520 million yen. However, it is assumed thatSAR will repay 1,080 million yen of the debt balance in the fiscal period ending January 31, 2021, using
proceeds from the sale of the Asset Planned to Be Transferred.
➢ Other than the above, it is assumed that borrowings with repayment dates falling in the fiscal period
ending January 31, 2021, and the fiscal period ending July 31, 2021, will be fully refinanced.
➢ It is assumed that there will be no new borrowings or repayment of existing borrowings, including early
repayment, up to the end of the fiscal period ending July 31, 2021, other than those described above.

Investment units➢ It is assumed that the total number of investment units issued and outstanding will be 1,674,389 units,
the number as of the date of this report, and that there will be no change in the number due to issuanceof new investment units, etc. through the end of the fiscal period ending July 31, 2021.

➢ 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 SAR expects a gain on negative goodwill described in the “Negative goodwill” will be recognized upon
Cash distributions
the Merger, SAR plans to secure the full amount of the retained earnings as well as satisfy the tax
per unit
requirements for conduit status by setting aside a reserve for temporary difference adjustment. SAR plans(not including
to use the retained earnings mainly to mitigate any negative impact on distributions caused by temporary
cash distribution
decrease in income or incurred expenses and to avoid the occurrence of corporate and other tax expenses
in excess of earnings)
as a result of any inconsistencies between tax and accounting beginning from the fiscal period ending July
31, 2021. SAR plans to withdraw the retained earnings of 178 million yen in the fiscal period ending July
2021.
Cash distributions ➢ SAR has no plans to make distributions in excess of earnings as of the date of this report.
in excess of earnings
per unit

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

－

4 －

2.

Financial Statements(1) Balance Sheet(Unit: thousand yen)
8th fiscal period(As of January 31, 2020)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment
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
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Lease and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets

1,622,851
3,848,378
45,608112,436
8,689

－

5 －

9th fiscal period(As of July 31, 2020)

5,637,964

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

33,247,569(2,521,046)
30,726,523
15,784(2,431)
13,352
46,680(9,570)37,11036,546(11,336)
25,21068,602,052
99,404,248

34,100,500(2,933,446)
31,167,053
18,395(2,990)15,40555,823(12,054)
43,76846,277(13,817)32,46070,619,311
101,877,998

3,459,138
3,459,138

3,459,138
3,459,138

711,912300,000
121,497
10,862
3,625
1,147,898
104,011,285
109,649,249

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

(Unit: thousand yen)
8th fiscal period(As of January 31, 2020)
Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
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 －9th fiscal period(As of July 31, 2020)

338,896
11,300,000
269,588
11,903605
35,586531,192
14,29912,502,070

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

40,280,000
6,718
2,459,766
101,271
42,847,755
55,349,826

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

52,745,966

52,745,966

1,649,263
1,649,263
54,395,229

1,998,562
1,998,562
54,744,528(95,806)(95,806)*1 54,299,423
109,649,249(129,943)(129,943)*1 54,614,584
113,035,501

(2) Statement of Income(Unit: thousand yen)
8th fiscal period
From: August 1, 2019
To: January 31, 2020
Operating revenue
Lease business revenue
Other lease business revenue
Gain on sales of real estate property
Other revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody and administrative service fees
Directors’ compensations
Merger expenses
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of unpaid distribution
Interest on refund
Gain on donation of non-current assets
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

*1
*1

*1

9th fiscal period
From: February 1, 2020
To: July 31, 2020

2,988,424
212,244
27,1603,227,829*1

1,189,614
226,759
23,7572,400*163,8881,506,419
1,721,410

1,173,882
252,533
28,0532,400
303,222
104,149
1,864,242
2,131,837

27
997
1
1,026

25
1,131
1
2,816
3,975

165,266
62,670227,937
1,494,499
1,494,499
605
605
1,493,894
155,368
1,649,263

172,539
105,551
278,091
1,857,721
1,857,721
605
605
1,857,116
141,446
1,998,562

-

－

7 －

3,122,781
192,129*2 648,585
32,582
3,996,079*1

(3) Statement of Unitholders’ Equity
8th fiscal period (from August 1, 2019 to January 31, 2020)(Unit: thousand yen)
Valuation and translation
adjustments

Unitholders’ equity
SurplusTotal
net assets

Total
surplus

Total
Total
Deferredvaluation andunitholders’ gains or losses
translation
equityon hedges
adjustments

2,115,855

2,115,855

54,861,822

54,739,757

Dividends from surplus(1,960,487)(1,960,487)(1,960,487)(1,960,487)

Net income

1,493,894

1,493,894

1,493,894

1,493,894

Unappropriatedretainedearnings(undisposed
loss)

Unitholders’capitalBalance at beginning of theperiodChanges of items during theperiod52,745,966

Net changes of items otherthan unitholders’ equity
Total changes of items during
the period
Balance at end of the period*1(122,065)(122,065)

26,25926,25926,259-(466,592)(466,592)(466,592)

26,25926,259(440,333)

52,745,966

1,649,263

1,649,263

54,395,229(95,806)(95,806)

54,299,423

9th fiscal period (from February 1, 2020 to July 31, 2020)(Unit: thousand yen)
Valuation and translation
adjustments

Unitholders’ equity
SurplusTotal
net assets

Total
surplus

Total
Total
Deferredvaluation andunitholders’ gains or losses
translation
equityon hedges
adjustments

1,649,263

1,649,263

54,395,229

54,299,423

Dividends from surplus(1,507,817)(1,507,817)(1,507,817)(1,507,817)

Net income

1,857,116

1,857,116

1,857,116

1,857,116

Unitholders’capitalBalance at beginning of theperiodChanges of items during theperiod52,745,966

Net changes of items otherthan unitholders’ equity
Total changes of items during
the period
Balance at end of the period*152,745,966

Unappropriatedretainedearnings(undisposed
loss)(95,806)(95,806)(34,137)(34,137)(34,137)

349,298349,298349,298(34,137)(34,137)

315,161

1,998,562

1,998,562

54,744,528(129,943)(129,943)

54,614,584－

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

Unappropriated retained earnings

II. Cash distribution[Cash distribution per unit]
Cash distribution of earnings[Cash distribution of earnings per unit]
III. Retained earnings carried forward

8th fiscal period
From: August 1, 2019
To: January 31, 2020

9th fiscal period
From: February 1, 2020
To: July 31, 2020

1,649,263,334

1,998,562,151

1,507,817,312

1,858,271,264[2,788]1,507,817,312[3,436]
1,858,271,264[2,788][3,436]

141,446,002

Method of calculation of amount of cash distributions
8th fiscal period (from August 1, 2019 to January 31, 2020):
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 1,507,817,312 yen, an amount equivalent tothe sum of net income plus the amount equal to a portion of rent holidays of logistic facilities, and an integral multiple of the total
number of issued investment units of 540,824 in total cash distribution.
9th fiscal period (from February 1, 2020 to July 31, 2020):
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 1,858,271,264 yen, an amount approximatedto net income and an integral multiple of the total number of issued investment units of 540,824.

－

9 －(5) Statement of Cash Flows(Unit: thousand yen)
8th fiscal period
From: August 1, 2019
To: January 31, 2020
Cash flows from operating activities
Income before income taxes
Depreciation
Interest income
Interest expenses
Decrease (increase) in operating accounts 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 from sales of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Purchase of investment securities
Proceeds from redemption of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
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

－

10

－

9th fiscal period
From: February 1, 2020
To: July 31, 2020

1,494,499
420,178(27)
165,266
10,297(163,882)
20,30846,67786,456(21,210)
13,802(16,850)
2,055,515
27(163,464)(903)
1,891,175

1,857,721
432,258(25)
172,539(3,703)
12,690(7,093)(14,225)(59,255)
147,767
166,974
734,465957
3,441,071
25(171,694)(696)
3,268,704(136,901)(141)
211(105,199)
86,020
11,639100(144,270)(3,582,328(123)(104,949)
75,044(150,000)
9,275
80(3,753,001)(1,960,276)(1,960,276)(213,372)
5,684,601*1 5,471,229

10,760,000(8,020,000)(1,507,655)
1,232,344
748,0475,471,229*1 6,219,277

(6) Notes on the Going Concern Assumption
Not applicable.
(7) Notes on Matters Concerning Significant Accounting Policies
1. Evaluation standards
Other securities:
and methods ofThose with fair value
valuation of securities
Fair value method or market value method (Variances are directly included in net assets.)Those with no fair value
Cost method through moving-average method
As for silent partnership equity interests, the method of incorporating the amountequivalent to equity interests corresponding to net amount of gain or loss from silent
partnership is adopted.
2. Method of
Property, plant and equipment (including trust assets)
depreciation of
The straight-line method is adopted. The useful life of primary property, plant and equipment is as follows:
non-current assets
Buildings
5-69 years
Structures
7-30 years
Machinery and equipment
7-17 years
Tools, furniture and fixtures 2-15 years
3. Standards for
Accounting for fixed property tax, etc.
revenue and expense
Accounting for fixed property tax, city planning tax, depreciable asset tax, etc. (“fixed property tax,
recognitionetc.”) on real estate or beneficiary interest in trust for real estate held is that of the tax amountassessed and determined, and the amount corresponding to the concerned calculation period isexpensed 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 recognized as expenses
but included in the cost of acquisition of the concerned real estate, etc. In the fiscal period underreview, the amount equivalent to fixed property tax, etc. included in the cost of acquisition of realestate, etc. was 9,754 thousand yen.
4. 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.
5. Scope of funds
The funds (cash and cash equivalents) in the statement of cash flows comprise cash on hand and cashin the statement ofin trust, demand deposits and deposits in trust, and short-term investments with a maturity of three
cash flows (cash andmonths or less from the date of acquisition that are readily convertible to cash and that are subject
cash equivalents)
to an insignificant risk of changes in value.
6. Other significant(1) Accounting for beneficiary interest in trust for real estate, etc.
matters serving as theConcerning beneficiary interest in trust for real estate, etc. held, all accounts of assets andbasis for preparation
liabilities within trust assets as well as all accounts of revenue and expenses from the trust assetsof financial statements
are recognized in the relevant account item of the balance sheet and the statement of income.
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 trust③ Leasehold rights in trust④ Tenant leasehold and security deposits in trust(2) Accounting for consumption tax, etc.
Taxes are excluded from the transaction amounts in accounting for consumption tax and local
consumption tax.
Non-deductible consumption tax on acquisition of assets is included in the acquisition cost ofeach asset.
－

11

－

(8) Notes to the Financial Statements[Notes to 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)
8th fiscal period(As of January 31, 2020)

9th fiscal period(As of July 31, 2020)

50,00050,000[Notes to the Statement of Income]*1 Breakdown of operating income (loss) from real estate leasing(Unit: thousand yen)
8th fiscal period
From: August 1, 2019
To: January 31, 2020

9th fiscal period
From: February 1, 2020
To: July 31, 2020

2,617,584
262,460

2,744,081
264,725

Parking revenue
Facility use revenue

95,72910,607

98,93812,518Other rental revenue

2,041

A. Operating revenue from real estate leasing
Lease business revenue
Rental revenue
Common area maintenance revenue

2,988,424

2,517

3,122,781

Other lease business revenue
Utilities reimbursement

177,361

Other revenue

34,883

152,573
212,244

39,5563,200,669

Total operating revenue from real estate leasing

192,129
3,314,911

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

153,423

157,872

Utilities expenses
Taxes and dues

176,939
238,044

148,284
240,373

Repair expenses
Trust fee

82,084
13,15093,667
13,779Insurance premium
Depreciation

4,773
420,178

4,846
432,258

Other expenses

101,019

82,800Total operating expenses from real estate leasing
C. Operating income (loss) from real estate leasing[A－B]*2 Breakdown of gain on sales of real estate property
8th fiscal period (from August 1, 2019 to January 31, 2020)
Not applicable.
9th fiscal period (from February 1, 2020 to July 31, 2020)
Alphabet Seven (quasi co-ownership interest of 40%) (unit: thousand yen)
Real Estate Sale Income

1,400,000

Real Estate Sale Cost
Other Real Estate Sale Expenses

734,465
16,949Gain on Real Estate Sale

648,585－12－

1,189,614

1,173,882

2,011,055

2,141,028

[Notes to the Statement of Unitholders’ Equity]*1 Total number of investment units authorized and total number of investment units issued and outstanding

Total number of investment units authorized
Total number of investment units issued and outstanding

8th fiscal period
From: August 1, 2019
To: January 31, 2020

9th fiscal period
From: February 1, 2020
To: July 31, 2020

10,000,000 units

10,000,000 units

540,824 units

540,824 units[Notes to 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)
8th fiscal period
From: August 1, 2019
To: January 31, 2020

9th fiscal period
From: February 1, 2020
To: July 31, 2020

Cash and deposits

1,622,851

2,303,632

Cash and deposits in trust

3,848,378

3,915,644

Cash and cash equivalents

5,471,229

6,219,277[Notes on Lease Transactions]Operating leases (as lessor)
Future minimum lease payments(Unit: thousand yen)
8th fiscal period
As of Jan. 31, 2020

9th fiscal period
As of Jul. 31, 2020

Not later than 1 year

2,723,855

2,837,305

Later than 1 year

7,898,637

7,716,198

10,622,493

10,553,503

Total

－

13

－

[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 “4.
Method of hedge accounting” described under “Notes on Matters Concerning Significant Accounting Policies” earlier inthis document.
(3) Supplementary explanation to matters concerning fair value, etc. of financial instruments
Not applicable.

2.

Matters concerning fair value, etc. of financial instruments
The carrying amount and fair value as of January 31, 2020, and the amount of difference between them, are as follows.
Financial instruments for which estimation of fair value is recognized to be extremely difficult are not included. Pleaserefer to “Note 2”.
(Unit: thousand yen)
Carrying amount

Fair value

Amount of difference(1) Cash and deposits

1,622,851

1,622,851-(2) Cash and deposits in trust

3,848,378

3,848,378-(3) Investment securities

524,740

524,740-(4) Long-term loans receivable

300,000

300,000-

6,295,969

6,295,969-(5) Current portion of long-term loans payable

11,300,000

11,300,000-(6) Long-term loans payable

40,280,000

40,280,000-

51,580,000

51,580,000-(95,806)(95,806)-

Assets total

Liabilities total(7) Derivative transactions (*)

The carrying amount and fair value as of July 31, 2020, and the amount of difference between these, are as follows.
Financial instruments for which estimation of fair value is recognized to be extremely difficult are not included. Pleaserefer to “Note 2”.
(Unit: thousand yen)
Carrying amount

Fair value

Amount of difference(1) Cash and deposits

2,303,632

2,303,632-(2) Cash and deposits in trust

3,915,644

3,915,644-(3) Investment securities

674,110674,110-(4) Long-term loans receivable

300,000

300,000-

7,193,387

7,193,387-(5) Current portion of long-term loans payable

14,040,000

14,040,000-(6) Long-term loans payable

40,280,000

40,280,000-

54,320,000

54,320,000-(129,943)(129,943)-

Assets total

Liabilities total(7) 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.

－

14

－

(Note 1) Method of calculation of the fair value of financial instruments(1) Cash and deposits; (2) Cash and deposits in trust; (5) Current portion of long-term loans payable
Since these are settled in a short period of time, the fair value is approximately the same as the book value, and thus stated at book value.
(3) Investment securities; (4) Long-term loans receivable;
Since interest income etc. from mezzanine loan debt (corporate bonds, beneficiary interest in trust and loans receivable) are all based on
floating interest rates under terms and conditions stipulating that interest rates be reviewed every set period of time, the fair value isapproximately the same as the book value, and thus stated at book value.
(6) Long-term loans payables
Since long-term loans payable are all with floating interest rates under terms and conditions that interest rates be reviewed every set periodof time, the fair value is approximately the same as the book value, and thus stated at that value.
(7) Derivative transactions
Please refer to “Notes on Derivative Transactions” later in this document.
(Note 2) Financial instruments for which estimation of fair value is recognized to be difficult
Category
Tenant leasehold and security deposits (*1)
Tenant leasehold and security deposits in trust (*1)
Investment securities (*2)

(Unit: thousand yen)
9th fiscal period
As of Jul. 31, 2020
6,595
2,429,860
179,240

8th fiscal period
As of Jan. 31, 2020
6,718
2,459,766
187,172(*1) Tenant leasehold and security deposits and tenant leasehold and security deposits in trust are not subject to valuation at fair value, because areasonable estimation of cash flows is recognized to be extremely difficult due to there being no market price and difficulty of calculating theactual deposit period from when lessees move in to when they move out.
(*2) Fair values of silent partnership equity interest in investment securities are not subject to disclosure of fair value as they have no market value
and their fair values are extremely difficult to recognize.
(Note 3) Amount of redemption of monetary claims scheduled to be due after the date of settlement of accounts
8th fiscal period (as of January 31, 2020)(Unit: thousand yen)
Later than 1 year Later than 2 years Later than 3 years Later than 4 years
Not later thanand not later than and not later than and not later than and not later than Later than 5 years
1 year
2 years
3 years
4 years
5 years
Cash and deposits

1,622,851

-

-

-

-

-

Cash and deposits in trust

3,848,378

-

-

-

-

-

Investment securities

-

-

-

524,740--

Long-term loans
receivable

-

-

-

300,000

-

-

Total

5,471,229--

824,740--

9th fiscal period (as of July 31, 2020)(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 yearCash and deposits

2,303,632

-

-

-

-

Cash and deposits in trust

3,915,644---

Investment securities

-

-

-

524,110150,000

Long-term loans
receivable

-

-

-

300,000-

Total

6,219,277--

824,110150,000(Note 4) Amount of repayment of loans scheduled to be due after the date of settlement of accounts
8th fiscal period (as of January 31, 2020)(Unit: thousand yen)
Later than 1 year Later than 2 years Later than 3 years Later than 4 years
Not later thanand not later than and not later than and not later than and not later than Later than 5 years
1 year
2 years
3 years
4 years
5 years
Long-term loans payable

11,300,000

14,600,000

8,150,000

9,530,000

8,000,000

-

Total

11,300,000

14,600,000

8,150,000

9,530,000

8,000,000-

9th fiscal period (as of July 31, 2020)
Not later than
1 year(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

Long-term loans payable

14,040,000

15,450,000

4,690,000

12,840,000

7,300,000

Total

14,040,000

15,450,000

4,690,000

12,840,000

7,300,000

－

15

－

[Notes on Securities]
Other securities
8th fiscal period (as of January 31, 2020)
Category

Book value(1) Stocks(Unit: thousand yen)
Difference

Acquisition cost---

① Government bonds,
municipal bonds, etc.

-

-

-

② Corporate bonds

-

-

-

③ Others

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

400,000

400,000-(2) Bonds
Book value greaterthan acquisition cost(3) Others
Subtotal(1) Stocks(2) Bonds
Book value less thanor equal toacquisition cost

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

-

-

-

124,740

124,740-

524,740

524,740-

524,740

524,740-(*) Silent partnership equity interests (book value: 187,172 thousand yen) are not included in above because they have nomarket value and their fair values are extremely difficult to recognize.
9th fiscal period (as of July 31, 2020)
Category

Book value(1) Stocks(Unit: thousand yen)
Difference

Acquisition cost---

① Government bonds,
municipal bonds, etc.

-

-

-

② Corporate bonds

-

-

-

③ Others

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

400,000

400,000-(2) Bonds
Book value greaterthan acquisition cost(3) Others
Subtotal(1) Stocks(2) Bonds
Book value less thanor equal toacquisition cost

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

-

-

-

274,110274,110-674,110674,110-674,110674,110-(*) Silent partnership equity interests (book value: 179,240 thousand yen) are not included above because they have no market
value and their fair values are extremely difficult to recognize.

－

16

－

[Notes on Derivative Transactions]
1. Derivative transactions to which hedge accounting is not applied
8th fiscal period (as of January 31, 2020)
Not applicable.
9th fiscal period (as of July 31, 2020)
Not applicable.
2.

Derivative transactions to which hedge accounting is applied

8th fiscal period (as of January 31, 2020)
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-termloans payable

Contract amount, etc. (Note 1)
Of which,later than 1 year
44,280,000

32,980,000

Fair value(Note 2)
(95,806)(Note 1) Contract amount, etc. is based on notional principal.
(Note 2) Fair value is calculated based on the price quoted by lending financial institutions, etc.

9th fiscal period (as of July 31, 2020)
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
method ofaccounting

Interest rate swap transaction(floating receivable; fixed payable)

Long-termloans payable

Contract amount, etc. (Note 1)
Of which,later than 1 year
44,280,000

32,980,000

Fair value(Note 2)

(129,943)(Note 1) Contract amount, etc. is based on notional principal.
(Note 2) Fair value is calculated based on the price quoted by lending financial institutions, etc.

[Notes on Retirement Benefits]
8th fiscal period (as of January 31, 2020)
Not applicable.
9th fiscal period (as of July 31, 2020)
Not applicable.
[Notes on Tax-Effect Accounting]
1. Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities(Unit: thousand yen)
8th fiscal period
As of January 31, 2020
Deferred tax assets
Acquisition cost of securities

9th fiscal period
As of July 31, 2020

1,359

1,359

Deferred gains or losses on hedges

30,14040,880Subtotal
Valuation allowance

31,499(31,499)

42,239(42,239)

-

-

-

-

Total
Deferred tax assets, net

－

17

－

2.

Breakdown of major components that caused any significant differences between the statutory tax rate and the effective
income tax rate after application of tax-effect accounting(Unit: %)8th fiscal period
As of January 31, 2020

9th fiscal period
As of July 31, 2020

Statutory tax rate
[Adjustments]

31.51

31.46

Deductible distributions payable
Others(31.50)0.03(31.46)
0.04

0.04

0.03

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.]
8th fiscal period (as of January 31, 2020)
Not applicable.
9th fiscal period (as of July 31, 2020)
Not applicable.
[Notes on Related-Party Transactions]
1.

Parent company, major corporate unitholders, etc.
8th fiscal period (from August 1, 2019 to January 31, 2020)
Not applicable.
9th fiscal period (from February 1, 2020 to July 31, 2020)
Not applicable.

2.

Affiliated companies, etc.
8th fiscal period (from August 1, 2019 to January 31, 2020)
Not applicable.
9th fiscal period (from February 1, 2020 to July 31, 2020)
Not applicable.

3.

Fellow subsidiaries, etc.
8th fiscal period (from August 1, 2019 to January 31, 2020)
Not applicable.
9th fiscal period (from February 1, 2020 to July 31, 2020)
Not applicable.

4.

Directors, major individual unitholders, etc.
8th fiscal period (from August 1, 2019 to January 31, 2020)

Type

Director, or
close
relative of
director

Name ofcompany,
etc. orpersonAtsushi
Kato

Address－

Capital stock Description ofor investments business orin capital
occupation－

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

Description oftransaction

Transaction
amount(thousandyen)

Account
item

Balance at
end ofperiod(thousand
yen)

0.02%

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

226,759(Note 2)

Accounts
payable –others249,435(Note 2)

Executive
Director of
SAR, andPresident andCEO of theAsset Manager

－

18

－

9th fiscal period (from February 1, 2020 to July 31, 2020)

Type

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

Capital stock Description ofor investments business orin capital
occupation

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

Description oftransaction

Transaction
amount(thousandyen)

Account
item

Balance at
end ofperiod(thousandyen)

Executive
Payment of asset
Director ofmanagement fee
282,733 Accounts
Atsushi
SAR, and291,537
0.02%
to the Assetpayable –－－(Note 2)
Kato
President and(Note 2)
Managerothers(Note 3)CEO of the(Note 1)
Asset 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 9th fiscal period includes the acquisition incentive portion included in the book value of individual
real estate, etc. in the amount of 16,200 thousand yen and the property transfer incentive portion in the amount of 14,000 thousandyen.

[Notes on Asset Retirement Obligations]
8th fiscal period (as of January 31, 2020)
Not applicable.
9th fiscal period (as of July 31, 2020)
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)
8th fiscal period
From: August 1, 2019
To: January 31, 2020

9th fiscal period
From: February 1, 2020
To: July 31, 2020

103,151,622

102,863,386(288,235)

2,473,750

102,863,386

105,337,137

114,110,000

115,290,000

Carrying amount
Balance at beginning of period
Amount of increase (decrease) during period
Balance at end of period
Fair value at end of period(Note 1) Carrying amount is the amount of the cost of acquisition, less accumulated depreciation.
(Note 2) Of the amount of increase (decrease) in investments in rental properties during the 8th fiscal period, the amount of increase is mainly
attributable to capital expenditures (131,943 thousand yen), while the amount of decrease is mainly attributable to depreciation (420,178
thousand yen). Of the amount of increase (decrease) during 9th fiscal period, the amount of increase is mainly attributable to acquisition ofreal estate beneficiary interest in trust of two properties (3,449,443 thousand yen) and capital expenditures (188,214 thousand yen), while theamount of decrease is mainly attributable to disposition of real estate beneficiary interest in trust of a property (quasi co-ownership: 40%)
(734,465 thousand yen) and depreciation (432,258 thousand yen).
(Note 3) Fair value at the end of the period is the appraisal value by an outside real estate appraiser. Of the fair value at the end of the 9th fiscal period,that of Alphabet Seven (quasi co­ownership interest: 60%) is based on the transfer price (2,100,000 thousand yen) stated in the contract dated
March 2, 2020.

Income (loss) concerning investments in rental properties is as stated in “Notes to the Statement of Income” earlier in thisdocument.

－

19

－

[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
8th fiscal period (from August 1, 2019 to January 31, 2020)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single product andservice category are in excess of 90% of operating revenue on the statement of income.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about major customers
Information about major customers is omitted because operating revenue to each customer is less than 10% of
operating revenue on the statement of income.
9th fiscal period (from February 1, 2020 to July 31, 2020)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single product andservice category are in excess of 90% of operating revenue on the statement of income.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about each major customer(Unit: thousand yen)
Customer nameOperating revenue
648,585(Note)

Kanden Realty & Development Co., Ltd.

Segment
Real estate leasing business(Note) Operating revenue is gain on sale of Alphabet Seven (quasi co-ownership interest: 40%)
[Notes on Per Unit Information]
8th fiscal period
From: August 1, 2019
To: January 31, 2020

9th fiscal period
From: February 1, 2020
To: July 31, 2020

Net assets per unit

50,200 yen

50,492yen

Net income per unit

1,381 yen

1,716yen(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) SAR has conducted an investment unit split to split one investment unit into two investment units with August 1, 2020, as the effective date. Net
assets per unit and net income per unit are calculated assuming that the Investment Unit Split was conducted at the beginning of the previous
fiscal period.
(Note 3) The basis for calculation of net income per unit is as follows:

－

20

－

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)

8th fiscal period
From: August 1, 2019
To: January 31, 2020

9th fiscal period
From: February 1, 2020
To: July 31, 2020

1,493,894

1,857,116--

1,493,894

1,857,116

1,081,648

1,081,648[Notes on Significant Subsequent Events]
1. Merger with SSR
SAR and SSR conducted an absorption-type merger with SAR as the surviving corporation and SSR as the dissolving
corporation, with August 1, 2020, as the effective date.
(1) Purpose of the Merger
The Merger was conducted based on the determination that realization of the Merger will contribute to maximizationof unitholder value for both SAR and SSR, by improving revenue stability owing to expansion of asset size, increase of
DPU as a result of cost reduction, and enhanced liquidity of investment units due to an increase in market
capitalization.
(2) Merger Ratio
Upon entering into the Merger, SAR allocated and delivered to unitholders 1.78 SAR investment units for every 1.0
SSR investment unit. Fractions of less than 1.0 investment unit were sold through market transactions based on theprovisions of the Act on Investment Trusts and Investment Corporations, and the proceeds from such sale weredelivered to unitholders who have been allocated fractional shares in accordance with the fractions held.
(3) Merger Money
SAR intends to deliver to SSR unitholders stated or recorded in the final unitholders’ register on July 31, 2020, the day
immediately preceding the effective date of the Merger, merger money equivalent to cash distributions that would
have been made for the final business period of SSR based on SSR’s distributable income in October 2020.
(4) Unitholders’ capital, etc.
Unitholders’ capital and capital surplus of SAR increased upon the Merger are as follows.
Unitholders’ capital : 0 yen
Unitholders’ capital surplus : Amount to be increased is calculated by deduct the increase amount in unitholders’capital above from an amount to be changed in unitholders’ equity prescribed in the Article 22, Paragraph 1 of theRegulation for the Accounting of the Investment Corporation (Cabinet Office Ordinance No. 47 effective in 2006).
(5) Overview of SSR’s latest fiscal period (from January 1, 2020 to July 31, 2020)
Business description: Investing in and managing mainly specified assets based on the Investment Trust Act
Operating revenue: 2,774 million yen
Net income: 829 million yen
Total assets: 63,212 million yen
Total liabilities: 33,128 million yen
Net assets: 30,083 million yen
2. Split of Investment Units
SAR has conducted an investment unit split to split one investment unit into two investment units with July 31, 2020, as therecord date and August 1, 2020, as the effective date for the Investment Unit Split.
(1) Purpose of Investment Unit Split
In order to make it possible for SSR unitholders to continue holding SAR investment units after the Merger, it has been
－

21

－

decided to carry out the Investment Unit Split, for the purpose of delivering to all SSR unitholders at least one SAR
investment unit.
(2) Method of Investment Unit Split
Each SAR investment unit owned by the SAR unitholders as stated or recorded in the final unitholders’ register on July
31, 2020, the day immediately preceding the effective date of the Merger, was split 2-for-1.
(3) Increase in number of investment units under the Investment Unit Split
Total number of issued and outstanding SAR investment units prior(i)
to the Investment Unit Split
(ii)
(iii)
(iv)
(v)

Number of investment units added under the Investment Unit Split
Total number of issued and outstanding SAR investment units after
the Investment Unit Split
Total number of issued and outstanding SAR investment units after
the Merger
Total number of authorized investment units after the Investment
Unit Split and the Merger:

540,824 units:

540,824 units:

1,081,648 units:

1,674,389 units:

10,000,000 units[Other notes]
Asset transfer
SAR plans to conduct the following asset transfer.
<Alphabet Seven>
Asset to be transferred:

Trust beneficiary interest in which the main trust assets are real estate in Japan(60% of quasi co­ownership interest)

Signing date:
Scheduled transfer dates:

March 2, 2020
December 1, 2020

Location (indication of residential address): 7-6-38, Akasaka, Minato-ku, Tokyo
Expected Buyer:
Kanden Realty & Development Co., Ltd.
Expected Transfer price:
Effect on profit and loss:

2,100 million yen
Operating revenues from gain on sale of real estate property are expected to berecorded in the amount of approximately 970 million yen in the fiscal period
ending January 31, 2021.

－

22

－

(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 from the dateof establishment of SAR to the end of the 9th fiscal period. In line with the Merger and the Investment Unit Split, the total numberof investment units issued and outstanding as of the date of this report is 1,674,389 units.
Total number of investment
Unitholders’ capitalunits issued and outstanding(thousand yen)(units)(Note 11)
Date
Event
Increase
Increase
Balance
Balance(Decrease)(Decrease)

Remarks

December 1, 2015

Establishment throughprivate placement

2,000

2,000

200,000

200,000(Note 1)January 14, 2016

Capital increase throughprivate placement

95,00097,0009,500,000

9,700,000(Note 2)

235,900

332,900

22,705,375

32,405,375(Note 3)

11,800344,700

1,135,750

33,541,125(Note 4)

66,200410,900

6,173,017

39,714,142(Note 5)

April 19, 2016
May 17, 2016
April 4, 2017

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

April 24, 2017

Capital increase throughthird-party allotment

3,400

414,300

317,043

40,031,185(Note 6)

February 1, 2018

Capital increase throughpublic offering

53,641

467,941

5,525,130

45,556,316(Note 7)

February 27, 2018

Capital increase throughthird-party allotment

2,683

470,624

276,354

45,832,670(Note 8)66,857537,4816,584,077

52,416,747(Note 9)3,343

540,824

329,218

52,745,966(Note 10)

September 5, 2018
October 2, 2018

Capital increase throughpublic offering
Capital increase throughthird-party allotment(Note 1) Investment units were issued at a paid-in amount of 100,000 yen per unit upon the establishment of SAR.
(Note 2) Investment units were issued at a paid-in amount of 100,000 yen per unit.
(Note 3) New investment units were issued through public offering at an issue price of 100,000 yen (paid-in amount of 96,250 yen) per unit for the
purpose of procuring funds for acquisition of new properties, etc.
(Note 4) New investment units were issued through third-party allotment at a paid-in amount of 96,250 yen per unit for the purpose of procuring funds
for repayment of borrowings.
(Note 5) New investment units were issued through public offering at an issue price of 96,720 yen (paid-in amount of 93,248 yen) per unit for the purposeof procuring funds for acquisition of new properties.
(Note 6) New investment units were issued through third-party allotment at a paid-in amount of 93,248 yen per unit for the purpose of procuring funds
for repayment of borrowings.
(Note 7) New investment units were issued through public offering at an issue price of 106,724 yen (paid-in amount of 103,002 yen) per unit for the
purpose of procuring funds for acquisition of new properties.
(Note 8) New investment units were issued through third-party allotment at a paid-in amount of 103,002 yen per unit for the purpose of procuring funds
for repayment of borrowings.
(Note 9) 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 10) 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 11) Deduction of reversal of allowance for temporary difference adjustment in line with the cash distribution in excess of earnings from unitholders’capital is not considered.

－

23

－

3.

Reference Information(1) Investment Status

Type ofasset

8th fiscal period(As of January 31, 2020)
Total amount
As a percentage
heldof total assets(million yen)(%)
(Note 2)
(Note 3)

Geographic area
(Note 1)Primary use

9th fiscal period(As of July 31, 2020)
Total amount
As a percentage
heldof total assets(million yen)(%)
(Note 2)
(Note 3)

Greater Tokyo

20,13018.4

19,387

17.2

Other than Greater Tokyo

15,825

14.4

15,761

13.9

Greater Tokyo

12,411

11.3

15,858

14.0

Other than Greater Tokyo

3,126

2.9

3,113

2.8

Greater Tokyo

30,79328.1

30,69027.2

Greater Tokyo

12,811

11.7

12,789

11.3

Other than Greater Tokyo

7,764

7.1

7,736

6.8

102,86393.8

105,337

93.2

Investment securities

711

0.6

853

0.8

Long-term loans receivable

300

0.3

300

0.3

Deposits and other assets

5,773

5.3

6,545

5.8

Total amount of assets

109,649

100.0

113,035

100.0

OfficeRealestatein trust

Residence

Logistics facility

Hotel

Subtotal

Amount(million yen)

As a percentage
of total assets(%)

Amount(million yen)

As a percentage
of total assets(%)

Total amount of liabilities (Note 4)

55,34950.5

58,42051.7

Total amount of net assets (Note 4)

54,29949.5

54,61448.3(Note 1) “Greater Tokyo” refers to Tokyo’s 23 wards, Yokohama City and Kawasaki City in the case of the office asset type, andTokyo, Kanagawa, Saitama and Chiba Prefectures in the case of other asset types (residence, logistics facility and hotel).
The same shall apply hereinafter.
(Note 2) “Total amount held” is the carrying amount as at the date of settlement of accounts (in the case of real estate in trust,then the depreciated book value), rounded down to the nearest million yen.
(Note 3) “As a percentage of total assets” is the carrying amount of the concerned assets expressed as a percentage of 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.

－

24

－

(2) Investment Assets① Investment securities
Asset
no.

Name of the security

MEZ-01

Star Asia Mezzanine Loan
Debt Investment Series 1

MEZ-03

Star Asia Mezzanine Loan
Debt Investment Series 3

MEZ-05

Star Asia Mezzanine Loan
Debt Investment Series 5

TKI-01

Subordinated silent
partnership equity interest
in Godo Kaisya SAPR8

TKI-02

Silent partnership equity
interest in Godo Kaisya
SAPR7
Total

Type of asset

Book value(million yen)

Quantity(Units)Corporate
bond
Trust
beneficiaryrightsTrustbeneficiaryrightsSilentpartnership
equityinterest
Silentpartnership
equityinterest－

Fair value(million yen)

Unrealized
gain orloss(millionyen)

Remarks

Unit
price

Amount

Unit
price

－

－

400

－

400

－

(Note 1)
(Note 2)

－

－

124

－

124

－

(Note 1)
(Note 3)

－

－

150

－

150

－

(Note 1)
(Note 4)

－

－

106

－

106

－

(Note 5)(Note 6)

－

－

72

－

72

－

(Note 5)(Note 6)

－

－

853

－

853

－

－

Amount(Note 1) Because interest income etc. from mezzanine loan debt are based on floating interest rates, the fair value isapproximately the same as the book value and thus stated at that book value.
(Note 2) The underlying assets are trust beneficiary interests in a trust mainly comprised of Relief Premium Haneda.
(Note 3) The underlying assets are trust beneficiary interests in a trust mainly comprised of The Royal Garden Residence
Shirokanedai.
(Note 4) The underlying assets are trust beneficiary interests in a trust mainly composed of Sanmaison Ohorikoenkita.
(Note 5) Book value is stated as fair value.
(Note 6) Overview of operating assets are as follows:
Name of the security

Type of specified
asset

Subordinated silent
partnership equity interest in
Godo Kaisya SAPR8

Beneficiary interestin trust

Silent partnership equity
interest in Godo Kaisya SAPR7

Beneficiary interestin trust

Property nameUrban Park Mitsuike Koen
Urban Park Tokiwadai Koen
OHA Building

－

25

－

Location(Indication of residential address)
6-10-5 Shimosueyoshi, Tsurumi-ku,
Yokohama City, Kanagawa Prefecture40-1 Tokiwadai, Hodogaya-ku,
Yokohama City, Kanagawa Prefecture
1-22-17 Akebono-cho, Tachikawa-shi,Tokyo② Real estate(a) Overview of real estate (purchase price, etc.)
Use

Property nameLocation(Note 2)Acquisition
price(million yen)
(Note 3)

Share ofinvestment(%)(Note 4)

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

OFC-01

Minami-Azabu Shibuya
Building

Minato Ward,
Tokyo

2,973

2.8

3,070

January 14, 2016

OFC-03

Honmachibashi Tower

Chuo Ward,
Osaka City, Osaka

6,065

5.8

6,960

January 14, 2016

Shibuya Ward,
Tokyo

1,763

1.7

2,510

April 20, 2016

Minato Ward,
Tokyo

1,035

1.0

1,608

April 20, 2016

2,042

1.9

3,260

April 20, 2016

6,320

6.0

7,840

April 20, 2016

2,286

2.2

2,630

April 6, 2017

Propertyno.
(Note 1)

OFC-04

Office

OFC-05

Nishi-Shinjuku Matsuya
Building
Alphabet Seven(60% of quasi co­ownership interest)(Note 6)

Shibuya Ward,Tokyo
Kanagawa Ward,
Yokohama City,
Kanagawa
Hakata Ward,
Fukuoka City,
Fukuoka

OFC-06

Shibuya MK Building

OFC-08Asahi Building

OFC-09Hakata-eki East Place

OFC-10Nihonbashi Hamacho Park
Building

Chuo Ward, Tokyo

1,450

1.4

1,550

February 2, 2018

OFC-11

Amusement Media
Gakuin Honkan

Shibuya Ward,
Tokyo

2,580

2.5

2,690

September 6, 2018

OFC-12

Higashi-KobeCenter Building

Higashinada Ward,
Kobe City, Hyogo

7,440

7.1

7,530

September 6, 2018

OFC-13

Amusement Media
Gakuin Shinkan

Shibuya Ward,
Tokyo

1,020

1.0

1,160

February 1, 201934,97433.3

40,808－Residence

Subtotal
RSC-01

Urban Park Azabujuban

Minato Ward,
Tokyo

2,045

1.9

2,480

January 14, 2016

RSC-02

Urban Park Daikanyama

Shibuya Ward,
Tokyo

6,315

6.0

8,310

January 14, 2016

RSC-05

Urban Park Namba

Naniwa Ward,
Osaka City, Osaka

1,490

1.4

1,650

April 20, 2016

RSC-06

Urban Park Gokokuji

Toshima Ward,
Tokyo

1,460

1.4

1,510

February 1, 2017

RSC-07

Urban Park Kashiwa

Kashiwa City,
Chiba

1,186

1.1

1,190

April 6, 2017

RSC-08

Urban Park Ryokuchi Koen

Suita City, Osaka

1,550

1.5

1,620

February 2, 2018

RSC-09Urban Park Koenji

1,167

1.1

1,180

February 2, 2018

RSC-10Urban Park Ichigao

1,810

1.7

1,850

March 13, 2020

RSC-11

Urban Park Gyotoku

1,430

1.4

1,500

March 13, 2020

18,453

17.6

21,290－

Suginami Ward,Tokyo
Aoba Ward,
Yokohama City,
Kanagawa
Ichikawa City,
Chiba

Subtotal－

26－

Logistics facility

LGC-01

Iwatsuki Logistics

LGC-02

Yokohama Logistics

LGC-03

Funabashi Logistics

LGC-04

Baraki Logistics

LGC-05

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

6,942

6.6

7,310

January 14, 2016

3,560

3.4

4,170

January 14, 2016

7,875

7.5

8,650

January 14, 2016

Ichikawa City,
Chiba

4,700

4.5

4,870

April 6, 2017

Tokorozawa Logistics

Tokorozawa City,
Saitama

1,300

1.2

1,350

April 6, 2017

LGC-06

Funabashi Nishiura
Logistics I

Funabashi City,
Chiba

3,000

2.9

3,020

February 2, 2018

LGC-07

Funabashi Nishiura
Logistics II

Funabashi City,
Chiba

821

0.8

850

February 2, 2018

LGC-08

Matsubushi Logistics

Kitakatsushika,
Saitama

2,755

2.6

2,860

February 2, 2018

30,95329.5

33,080－Hotel

Subtotal
HTL-01R&B Hotel Umeda East

Kita Ward,
Osaka City, Osaka

2,069

2.0

2,270

January 14, 2016

HTL-02

Smile Hotel Namba

Naniwa Ward,
Osaka City, Osaka

1,750

1.7

1,430

January 14, 2016

HTL-03

BEST WESTERN Tokyo
Nishikasai

3,827

3.6

3,660

April 6, 2017

HTL-04

BEST WESTERN Yokohama

3,248

3.1

3,220

April 6, 2017

HTL-05

Hotel WBF Fukuoka Tenjin
Minami

1,970

1.9

1,940

September 6, 2018

HTL-06

GLANSIT AKIHABARA

2,500

2.4

2,450

September 6, 2018

HTL-07

Best Western Tokyo
Nishikasai Grande

Edogawa Ward,
Tokyo

3,180

3.0

3,130

September 6, 2018

HTL-08

Hotel WBF Art Stay Namba

Naniwa Ward,
Osaka City, Osaka

2,000

1.9

1,520

September 6, 2018

20,544

19.6

19,620－104,924

100.0

114,798－

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

Subtotal
Total(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.
(Note 4) “Share of investment” is the acquisition price of the investment asset indicated as the ratio of the total of acquisition price, rounded to thefirst decimal place.
(Note 5) Daiwa Real Estate Appraisal Co., Ltd., Japan Real Estate Institute and The Tanizawa Sogo Appraisal co., Ltd. are entrusted with appraisals. Realestate appraisal values are the figures indicated in the real estate appraisal report with July 31, 2020 as the date of value and are rounded
to the nearest million yen. “Real estate appraisal value” of Alphabet Seven (quasi co­ownership interest: 60%) is obtained by multiplying theappraisal value for 100% of quasi co-ownership interest by 60%, the portion of quasi co-ownership interest owned by SAR as of July 31, 2020.
For details, please refer to “(d) Summary of Real Estate Appraisal Reports, etc.”.
(Note 6) Alphabet Seven (quasi-co-ownership interest: 60%) is scheduled be transferred on December 1,2020. The same shall apply hereinafter.

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27

－

(b) Portfolio Summarya.

By Geographic Area
Geographic area

GreaterTokyo

Acquisition price(million yen)

Share
(%)
(Note 1)

5 central wards of Tokyo (Note 2)

23,723

22.6

Other areas in Greater Tokyo

54,581

52.0

74.6

Other than Greater Tokyo

26,620

25.4

Total

104,924100.0(Note 1) “Share” is calculated on the basis of acquisition price, rounded to the first decimal place. Accordingly, the shares
may not add up to 100%. The same shall apply hereinafter in “c. By Asset Type (Use).”(Note 2) “5 central wards of Tokyo” refers to Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards. The same shall apply
hereinafter.
(a) OfficeGeographic area
GreaterTokyo

Acquisition price(million yen)

Share
(%)

5 central wards of Tokyo

12,86336.8

Other areas in Greater Tokyo

6,320

18.1

54.8

Other than Greater Tokyo

15,791

45.2

Total

34,974100.0(b) Residence
Geographic area
GreaterTokyo

Acquisition price(million yen)

Share
(%)

5 central wards of Tokyo

8,360

45.3

Other areas in Greater Tokyo

7,053

38.2

83.5

Other than Greater Tokyo

3,040

16.5

Total

18,453100.0(c) Logistics facility
Geographic area
GreaterTokyo

Acquisition price(million yen)

Share
(%)

－

－

30,953100.0

5 central wards of Tokyo

100.0
Other areas in Greater Tokyo－－

30,953

100.0

Other than Greater Tokyo
Total

－

28

－

(d) Hotel
Acquisition price(million yen)

Geographic area
GreaterTokyob.

5 central wards of Tokyo

2,500

12.2

Other areas in Greater Tokyo

10,255

49.9

62.1

Other than Greater Tokyo

7,789

37.9

Total

20,544100.0

By Size
Acquisition price

5 billion yen or more
but less than 10 billion yen
1 billion yen or more
but less than 5 billion yen

Share
(%)
(Note)

Number ofproperties
6

16.7

29

80.6

Less than 1 billion yen

1

2.8

Total

36

100.0

(Note)
c.

Share
(%)

“Share” is calculated on the basis of number of properties.

By Asset Type (Use)
Number ofproperties

Acquisition price(million yen)

Office11

34,974

33.3

Residence

918,453

17.6

Logistics facility

830,953

29.5

Hotel

8

20,544

19.6

Total

36

104,924

100.0

Use

－

29

－

Share
(%)

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

Security andguarantee
deposits(thousandyen)(Note 3)

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

Occupancy
rate(%)(Note 6)

Propertyno.

Property nameConstruction
completion

OFC-01

Minami-Azabu Shibuya
Building

June 1993

5

95,947110,263

3,263.08

3,263.08

100.0

OFC-03

Honmachibashi Tower

February 2010

5(Note 7)

215,558

200,763

10,489.58

10,489.58

100.0

OFC-04

Nishi-Shinjuku Matsuya
Building

May 198710

108,781

127,097

3,521.03

3,521.03

100.0

OFC-05Alphabet Seven(Note 10)January 1990

9

75,26654,541

1,362.11

1,478.75

92.1

OFC-06

Shibuya MK Building

July 1993

4

79,693

106,556

1,612.88

1,612.88

100.0

OFC-08Asahi Building

November 1994

20

226,051

247,6028,672.01

8,672.01

100.0

OFC-09Hakata-eki East Place

February 1986

17

104,329

89,557

4,583.27

4,632.70

98.9

OFC-10Nihonbashi Hamacho Park
Building

July 1992

4

51,571

76,945

1,911.84

1,911.84

100.0

OFC-11

Amusement Media Gakuin
HonkanNovember 1994

1

Not
disclosed(Note 9)1,892.18

100.0

OFC-12

Higashi Kobe Center Building

January 1992

52

16,298.00

16,926.56

96.3

OFC-13

Amusement Media Gakuin
ShinkanJanuary 1999

1

Notdisclosed(Note 9)781.33100.0

RSC-01

Urban Park Azabujuban

November 1999

41

57,827

10,764

1,883.40

1,986.76

94.8

RSC-02

Urban Park Daikanyama

Existing:
November 1982
Newly built:
May 2006

67

193,318

80,152

5,624.44

5,977.18

94.1

RSC-05

Urban Park Namba

January 2013105

49,759-2,328.25

2,584.81

90.1

RSC-06

Urban Park Gokokuji

February 1990

90

51,611

7,834

1,668.68

1,964.04

85.0

RSC-07

Urban Park Kashiwa

August 1997

39

37,0768,031

2,884.86

2,954.77

97.6

RSC-08

Urban Park Ryokuchi Koen

March 1989

59

56,4789,770

5,508.94

5,508.94

100.0

RSC-09Urban Park Koenji

October 1987

70

36,3215,701

1,252.03

1,365.48

91.7

RSC-10Urban Park Ichigao

July 1998

61

42,764

16,107

4,197.58

4,322.62

97.1

RSC-11

Urban Park Gyotoku

March 1995

41

34,60728,8602,917.92

2,976.36

98.0

LGC-01

Iwatsuki Logistics

October 2014

3

197,147

97,01430,190.81

30,190.81

100.0

LGC-02

Yokohama Logistics

October 1994

1

Not
disclosed(Note 9)18,142.08

100.0

LGC-03

Funabashi Logistics

Building 1:
September 1992
Building 2:
August 1997

4

34,901.67

38,086.56

91.6

LGC-04

Baraki Logistics

August 2015

2

Notdisclosed(Note 9)12,126.28

100.0

－

30

Not
disclosed(Note 9)318,964
Not
disclosed(Note 9)Not
disclosed(Note 9)257,660

Not
disclosed(Note 9)－Not
disclosed(Note 9)300,470
Not
disclosed(Note 9)Not
disclosed(Note 9)83,426

Not
disclosed(Note 9)

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

Security andguarantee
deposits(thousandyen)(Note 3)

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

Occupancy
rate(%)(Note 6)

Propertyno.

Property nameConstruction
completion

LGC-05Tokorozawa Logistics

April 1999

1

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

100.0

LGC-06

Funabashi Nishiura Logistics I

October 1985

1

Notdisclosed(Note 9)Not
disclosed(Note 9)Not
disclosed(Note 9)14,018.82

100.0

LGC-07

Funabashi Nishiura Logistics
II

Warehouse: March
1991
Factory: May 1972
Office: May 1986

1

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

100.0

LGC-08

Matsubushi Logistics

March 1997

1

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

100.0

HTL-01R&B Hotel Umeda East

October 2000

1

65,21273,4953,940.93

3,940.93

100.0

HTL-02

Smile Hotel Namba

February 2008

1

19,410-1,711.42

1,711.42

100.0

HTL-03

BEST WESTERN Tokyo
Nishikasai

March 1991

1

84,60084,6005,293.88

5,293.88

100.0

HTL-04

BEST WESTERN Yokohama

September 1987

1

80,40080,4004,686.09

4,686.09

100.0

HTL-05

Hotel WBF Fukuoka Tenjin
MinamiFebruary 2017

1

2,281.49

100.0

HTL-06

GLANSIT AKIHABARA

September 2017

1

1,089.06

100.0

HTL-07

BEST WESTERN Tokyo
Nishikasai Grande

February 2017

1

2,755.19

100.0

HTL-08

Hotel WBF Art Stay Namba

April 2017

0Notdisclosed(Note 9)Not
disclosed(Note 9)Not
disclosed(Note 9)2,061.46

0.0

722

3,314,911

2,436,455

245,935.22

253,351.06

97.1

Total

(Note 1)

Not
disclosed(Note 9)Not
disclosed(Note 9)70,002

Not
disclosed(Note 9)Not
disclosed(Note 9)116,670

Not
disclosed(Note 9)Not
disclosed(Note 9)2,755.19“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, 2020. 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, 2020 (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, 2020. Furthermore, in cases where a master lease agreement has been concluded for the concerned investment
－

31

－

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
under a rent-guaranteed type master lease.
(Note 5)

“Leasable area” is the floor area regarded as being available for leasing based on the lease agreement or building
drawing, etc. of the building for each investment asset as of July 31, 2020.

(Note 6)

“Occupancy rate” is the ratio of leased area to leasable area for each investment asset as of July 31, 2020, 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(Note 7)

total of leasable area for each investment asset, rounded to the first decimal place.
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.

(Note 8)(Note 9)In the table, “Number of tenants,” “Security and guarantee deposits,” “Leased area” and “Occupancy rate” arebased on lease agreements valid as of July 31, 2020, even if there is a notice of cancellation or termination of leaseagreements with end-tenants or unpaid rent.
Not disclosed, because consent for disclosure has not been obtained from the tenants.

(Note 10) “Leased area” and “Leasable area” of Alphabet Seven are obtained by multiplying the area of the entire property
by 60%, the portion of quasi co-ownership interest owned by SAR as of July 31, 2020.
(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)

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

3,070

3,180

3.9

3,020

3.5

4.1

139

4.7

OFC-03

Honmachibashi Tower

Daiwa

6,960

7,070

4.2

6,910

4.0

4.4

311

5.1

OFC-04

Nishi-Shinjuku Matsuya Building

Daiwa

2,510

2,450

4.1

2,540

3.9

4.3

113

6.4

OFC-05Alphabet Seven(quasi co­ownership interest: 60%)

JREI

1,608
(Note 5)

1,632
(Note 5)

3.7

1,578
(Note 5)

3.5

3.9

63
(Note 5)6.1

OFC-06

Shibuya MK Building

JREI

3,260

3,320

3.5

3,190

3.3

3.7

120

5.9

OFC-08Asahi Building

JREI

7,840

7,970

3.6

7,700

3.4

3.8

317

5.0

OFC-09Hakata-eki East Place

Daiwa

2,630

2,570

4.6

2,650

4.4

4.8

119

5.2

Daiwa

1,550

1,540

4.3

1,550

4.1

4.5

68

4.7

Daiwa

2,690

2,740

3.6

2,670

3.4

3.8

102

4.0

OFC-12

Higashi Kobe Center Building Tanizawa

7,530

7,640

5.0

7,480

5.1

5.2

430

5.8

OFC-13

Amusement Media Gakuin
Shinkan

1,160

1,180

3.4

1,130

3.2

3.6

41

4.0

40,80841,292-40,418

-

-

1,823

5.2

OFC-10
OFC-11

Nihonbashi Hamacho Park
Building
Amusement Media Gakuin
Honkan

JREI

Subtotal

Residence

Income approach

RSC-01

Urban Park Azabujuban

JREI

2,480

2,520

3.5

2,430

3.3

3.7

91

4.4

RSC-02

Urban Park Daikanyama

JREI

8,310

8,480

3.4

8,130

3.2

3.6

300

4.8

RSC-05

Urban Park Namba

Daiwa

1,650

1,670

4.7

1,640

4.5

4.9

80

5.4

RSC-06

Urban Park Gokokuji

JREI

1,510

1,540

4.0

1,480

3.8

4.2

69

4.7

RSC-07

Urban Park Kashiwa

Tanizawa

1,190

1,210

4.6

1,180

4.7

4.8

60

5.0

RSC-08

Urban Park Ryokuchi Koen

Tanizawa

1,620

1,630

4.8

1,620

4.9

5.0

89

5.7

RSC-09Urban Park Koenji

Tanizawa

1,180

1,200

4.0

1,170

4.1

4.2

55

4.7

RSC-10Urban Park Ichigao

JREI

1,850

1,870

4.3

1,820

4.1

4.5

86

4.7

RSC-11

Urban Park Gyotoku

Tanizawa

1,500

1,510

4.2

1,490

4.3

4.4

67

4.7

21,29021,630-20,960

-

-

896

4.9

Subtotal－

32－

Logistics
facility

LGC-01

Iwatsuki Logistics

Daiwa

7,310

7,410

4.4

7,270

4.2

4.6

333

4.8

LGC-02

Yokohama Logistics

Daiwa

4,170

4,190

4.2

4,160

4.0

4.4

204

5.7

LGC-03

Funabashi Logistics

Daiwa

8,650

8,710

4.2

8,620

4.0

4.4

419

5.3

LGC-04

Baraki Logistics

Tanizawa

4,870

4,980

4.0

4,820

3.9

4.2

201

4.3

LGC-05Tokorozawa Logistics

JREI

1,350

1,360

5.0

1,330

4.6

5.3

74

5.7

LGC-06

Funabashi Nishiura Logistics I

Daiwa

3,020

3,040

4.6

3,010

4.3

4.7

153

5.1

LGC-07

Funabashi Nishiura Logistics II Daiwa

850

844

5.6

853

5.4

5.8

57

7.0

LGC-08

Matsubushi Logistics

JREI

Subtotal

2,870

5.1

2,840

4.6

5.4

151

5.5

33,404-32,903

-

-

1,591

5.1

HTL-01R&B Hotel Umeda East

Daiwa

2,270

2,280

4.6

2,260

4.4

4.8

113

5.5

HTL-02

Smile Hotel Namba

Daiwa

1,430

1,500

4.7

1,400

4.5

4.9

75

4.3

JREI

3,660

3,730

4.3

3,590

4.1

4.5

165

4.3

JREI

3,220

3,260

4.4

3,170

4.2

4.6

147

4.5

Tanizawa

1,940

1,960

4.4

1,930

4.4

4.6

87

4.4

HTL-03
HTL-04Hotel

2,860
33,080

HTL-05BEST WESTERN Tokyo
Nishikasai
BEST WESTERN Yokohama
Hotel WBF Fukuoka Tenjin
Minami

HTL-06

GLANSIT AKIHABARA

Tanizawa

2,450

2,510

3.9

2,420

3.8

4.1

98

3.9

HTL-07

Best Western Tokyo Nishikasai
Tanizawa
Grande

3,130

3,160

4.0

3,120

3.9

4.2

126

4.0

HTL-08

Hotel WBF Art Stay Namba

1,520

1,600

4.3

1,490

4.1

4.5

76

3.8

19,62020,000-19,380

-

-

888

4.3

114,798

116,326-

113,661

-

-

5,199

5.0

Daiwa

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, 2020, 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.
(Note 5) The figures obtained by multiplying figures in the appraisal report for 100% of quasi co-ownership by 60%, theportion of quasi co-ownership interest owned by SAR as of July 31, 2020, are shown.

－

33

－

(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, 2020. Of investment assets, the following are top five properties interms of total rental revenue as of July 31, 2020.
Changes in occupancy rate (%) (Note)
July 31, 2018
January 31, 2019
July 31, 2019
January 31, 2020
July 31, 2020
Higashi Kobe Center
Building

-

96.1

89.6

94.4

96.3

Funabashi Logistics

91.6

91.6

91.6

91.6

91.6

Asahi Building
Iwatsuki Logistics

100.0
100.0

100.0
100.0

100.0
100.0

100.0
100.0

100.0
100.0

Honmachibashi
Tower

100.0

100.0

100.0

100.0

100.0

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

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

Not disclosed (Note 3)

Iwatsuki Logistics

Not disclosed (Note 3)

11.7

2

Not disclosed (Note 3)

Funabashi Logistics

Not disclosed (Note 3)

8.6

3

Tokyo Nohin Daiko

Matsubushi Logistics

19,833.47

7.8

4

Not disclosed (Note 3)

Yokohama Logistics

Not disclosed (Note 3)

7.2

5

Not disclosed (Note 3)

Funabashi Nishiura Logistics I

Not disclosed (Note 3)

5.5

6

Rembrandt Inn

BEST WESTERN Tokyo Nishikasai
BEST WESTERN Yokohama
Best Western Tokyo Nishikasai
Grande12,735.16

5.0

7

Not disclosed (Note 3)

Funabashi Logistics

Not disclosed (Note 3)

2.8

8

Not disclosed (Note 3)

Funabashi Nishiura Logistics II

Not disclosed (Note 3)

2.5

9

Not disclosed (Note 3)

Baraki Logistics

Not disclosed (Note 3)

2.4

10

Not disclosed (Note 3)

Baraki Logistics

Not disclosed (Note 3)

2.4

141,877.25

56.0

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 of July
31, 2020.
(Note 2) “As a percentage of total leasable area” is the area leased to the tenant expressed as a percentage of the sum totalof 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.

－

34

－

(g) Capital Expendituresa.

Schedule of Capital Expenditures for the 10th 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, 2020. Please note that the expected construction amounts include portions
that are expensed as a separate account item of accounting costs.

PurposeScheduled period

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

Higashi Kobe Center Building(Kobe City, Hyogo)

Porcelain tile correction
work on the outer wall

From: Dec. 2020
To:
Dec. 2020

39,600Asahi Building(Yokohama City, Kanagawa)Air conditioning
equipment renewal work

From: Nov. 2020To:
Nov. 2020

34,500Air conditioning
equipment renewal work

From: Sep. 2020
To:
Oct. 2020

16,940

Northwest side outer wall
repair work

From: Oct. 2020
To:
Dec. 2020

16,000

Northwest side outer wall
repair work

From: Dec. 2020
To:
Dec. 2020

14,400Name of real estate, etc.
(Location)

Amusement Media Gakuin
Honkan(Shibuya Ward, Tokyo)
Tokorozawa Logistics(Tokorozawa City, Saitama)
Urban Park Gokokuji(Toshima Ward, Tokyo)
b.

－

－

Capital Expenditures during the 9th fiscal period
The following summarizes the primary construction works that constitute capital expenditures implemented for theassets held by SAR as of July 31, 2020, during the 9th fiscal period. Capital expenditures for the 9th fiscal periodamounted to 188,214 thousand yen and, when combined with the 93,667 thousand yen in repair expenses charged tothe same period, it totals 281,882 thousand yen in construction works implemented.
Name of real estate, etc.
(Location)

Purpose

PeriodAsahi Building(Yokohama City, Kanagawa)Air conditioning
equipment renewal work
Roof tarpaulin
Funabashi Nishiura Logistics I
replacement work and(Funabashi City, Chiba)
painting work
BEST WESTERN Tokyo Nishikasai Hot water supply facility
renewal work
(Edogawa Ward, Tokyo)
Nishi-Shinjuku Matsuya Building DC power supply renewal
work(Shibuya Ward, Tokyo)
Heats equipment renewal
Urban Park Gokokuji
work(Toshima Ward, Tokyo)－

Others
Total－

Construction costs(thousand yen)

From: Jul. 2020
To:
Jul. 2020

21,885

From: Jul. 2020
To:
Jul. 2020

17,143

From: Jul. 2020
To:
Jul. 2020

16,170

From: May. 2020
To:
Jul. 2020

14,352

From: Jun. 2020
To:
Jul. 2020

11,172－

107,488
188,21435－

(h) Individual Property Income Statements(Unit: thousand yen)

Property no.

OFC-01

OFC-03

OFC-04

OFC-05

OFC-06

Property nameMinami-Azabu
Shibuya Building

Honmachibashi
Tower

Nishi-Shinjuku
Matsuya Building

Alphabet Seven

Shibuya
MK Building① Total operating revenue
from real estate leasing

95,947

215,558

108,781

75,266

79,693

Lease business revenue

88,068

193,563

101,784

66,87075,321Other lease business revenue

7,879

21,994

6,996

8,396

4,372

27,44658,871

34,383

17,242

13,522

5,971

15,180

6,835

4,564

4,797

400

400

400

412

350

6,085

18,763

7,439

3,913

3,078

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

115

354

127

92

44

Repair expenses

1,921

2,159

3,374

1,807

530

Property taxes

4,535

19,763

3,410

6,208

4,327

Others

8,416

2,250

12,796244

393

68,500156,686

74,39758,023

66,170④ Depreciation

11,56545,359

8,744

5,617

3,386

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

56,934111,327

65,65352,40662,784

③ NOI

(①－②)

637

1,132

16,631-

3,797

67,863

155,554

57,76658,02362,373

2,952,020

5,816,046

1,828,725

1,101,697

2,092,597

OFC-08

OFC-09OFC-10

OFC-11

OFC-12

Hakata-eki
East Place

Nihonbashi
Hamacho Park
Building

Amusement
Media Gakuin
HonkanHigashi Kobe
Center Building⑥ Capital expenditures
⑦ NCF

(③－⑥)

Book value at end of the period

Property no.
Property name

Asahi Building① Total operating revenue
from real estate leasing

226,051

104,329

51,571

318,964

Lease business revenue

210,058

94,303

51,571

282,767

Other lease business revenue

15,992

10,025-36,19764,91028,698

12,112

114,870

15,7208,041

880

26,457

400

400

400

400

17,490

6,986

-

353

165

122

Repair expenses

12,566

4,881

30

Property taxes

16,123

7,079

4,299

29,165

Others

2,254

1,143

6,379

20,380② Total operating expenses
from real estate leasing
Management fee
Trust fee
Utilities expenses
Insurance premium

33,035
Not disclosed(Note)

649
4,782

161,140

75,63039,459204,094④ Depreciation

26,611

7,777

2,837

33,006⑤ Operating income (loss)
from real estate leasing(③－④)

134,529

67,85336,622

171,087

③ NOI

(①－②)

⑥ Capital expenditures

24,176

5,788-

15,795

⑦ NCF

(③－⑥)

136,964

69,84139,459188,299

Book value at end of the period

6,327,747

2,314,827

1,455,957(Note) Not disclosed because consent for disclosure has not been obtained from the tenants.

－

36

－

2,594,390

7,631,050

(Unit: thousand yen)

Property no.

OFC-13

RSC-01

RSC-02

RSC-05

RSC-06

Property nameAmusement
Media Gakuin
ShinkanUrban Park
Azabujuban

Urban Park
Daikanyama

Urban Park
Namba

Urban Park
Gokokuji① Total operating revenue
from real estate leasing

57,827

193,318

49,75951,611

Lease business revenue

54,777

186,271

49,25547,450

Other lease business revenue

3,050

7,046

504

4,161

10,94937,7999,334

19,566② Total operating expenses
from real estate leasing

2,107

9,922

2,561

3,806

Trust fee

350

350

350

400

Utilities expenses

669

3,778

351

2,222

Management fee

57

194

63

52

2,909

7,242

2,158

7,935

Insurance premium
Repair expenses

Not disclosed(Note)

2,874

11,442

2,821

1,909

Others

1,981

4,870

1,029

3,239

③ NOI
(①－②)

46,878

155,518

40,42532,045④ Depreciation

4,915

12,909

7,541

5,374

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

41,962

142,60932,883

26,671⑥ Capital expenditures

2,379

7,733

-

11,172

⑦ NCF
(③－⑥)

44,498

147,785

40,42520,872

1,034,110

2,082,765

6,378,928

1,505,775

1,512,125

Property no.

RSC-07

RSC-08

RSC-09

RSC-10

RSC-11

Property nameUrban Park
Kashiwa

Urban Park
Ryokuchi Koen

Urban Park Koenji

Property taxes

Book value at end of the period

Urban Park Ichigao Urban Park Gyotoku① Total operating revenue
from real estate leasing

37,07656,47836,321

42,76434,607

Lease business revenue

35,901

54,38833,80741,60232,398Other lease business revenue

1,174

2,090

2,513

1,162

2,208

10,842

22,457

8,447

5,071

6,132

1,969
350
589
84
3,674
2,950
1,225

2,778
350
2,212
117
6,631
3,583
6,784

1,796
400
1,560
36
2,326
969
1,358

2,403
308
815
81
812
648

1,670
308
823
53
2,226
1,049

26,23434,02027,87337,69328,475④ Depreciation

7,241

7,986

2,574

4,489

3,236

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

18,992

26,03425,29933,20425,238⑥ Capital expenditures

2,191

3,153

7,707

1,611

5,256

⑦ NCF
(③－⑥)

24,04230,866

20,16636,082

23,2181,241,569

1,607,931

1,194,447

1,930,897

1,517,687② Total operating expenses
from real estate leasing
Management fee
Trust fee
Utilities expenses
Insurance premium
Repair expenses
Property taxes
Others③ NOI(①－②)

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

－

37

－

(Unit: thousand yen)

Property no.

LGC-01

LGC-02

LGC-03

LGC-04

LGC-05

Property nameIwatsuki Logistics

Yokohama Logistics

Funabashi Logistics

Baraki Logistics

Tokorozawa Logistics

Not disclosed(Note1)

Not disclosed(Note1)① Total operating revenue
from real estate leasing

197,147

257,660

Lease business revenue

187,713

241,745

9,433

15,91430,75651,891

5,650

11,618Other lease business revenue② Total operating expenses
from real estate leasing
Management fee

350

400

Utilities expenses

9,433

13,247

Insurance premium

272

Repair expenses

1,111

Property taxes

13,63023,015

307

191

Trust fee

Other

Not disclosed(Note1)

392
3,026

166,390

205,769④ Depreciation

46,60926,992⑤ Operating income (loss)
from real estate leasing(③－④)

119,780

178,777⑥ Capital expenditures

3,294

3,387

(③－⑥)

163,096202,381Book value at end of the period

6,605,645

3,749,579

7,788,516

4,643,978

Property no.

LGC-06

LGC-07

LGC-08

HTL-01

Property name

Funabashi Nishiura
Logistics I

③ NOI

⑦ NCF

(①－②)

1,354,721
HTL-02

Funabashi Nishiura
R&B Hotel Umeda
Matsubushi Logistics
Logistics II
East

Smile Hotel
Namba (Note2)① Total operating revenue
from real estate leasing

65,212

19,410

Lease business revenue

65,212

19,410

-

-

9,349

5,677

Management fee

742

660

Trust fee

350

550

1

-

Other lease business revenue② Total operating expenses
from real estate leasing

Utilities expenses
Insurance premium
Repair expenses

Not disclosed(Note 1)

Not disclosed(Note 1)

Not disclosed(Note 1)

Property taxes
Other

111

53

2,490

1,539

5,452

2,276

199

598

55,863

13,733④ Depreciation

9,844

12,210⑤ Operating income (loss)
from real estate leasing(③－④)

46,0191,522⑥ Capital expenditures

3,389

4,745

⑦ NCF

52,474

8,987

2,114,870

1,675,380

③ NOI

(①－②)

(③－⑥)

Book value at end of the period

2,967,341

854,936

2,725,589(Note 1) Not disclosed because consent for disclosure has not been obtained from the tenants.
(Note 2) Operating revenue from real estate leasing of Smile Hotel Namba includes variable rents of 1,784 thousand yen.

－

38

－

(Unit: thousand yen)
Property no.

HTL-03

HTL-04

HTL-05

HTL-06

HTL-07

Property nameBEST WESTERNTokyo Nishikasai

BEST WESTERN
Yokohama

Hotel WBF Fukuoka
Tenjin Minami

GLANSITAKIHABARABest Western Tokyo
Nishikasai Grande① Total operating revenue
from real estate leasing

84,60080,40070,002

Lease business revenue

84,60080,40070,002---

12,853

7,241

6,715

1,200

1,200

990

400

400

400
-

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

Insurance premium

125

105

Repair expenses

3,084

805

Property taxes

8,019

4,706

5,239

24

24

22

Utilities expenses

Other

Not disclosed(Note)

Not disclosed(Note)

63-

71,74673,15863,286④ Depreciation

11,945

13,03010,857⑤ Operating income (loss)
from real estate leasing(③－④)

59,80060,12852,429⑥ Capital expenditures

16,170

1,666

-

⑦ NCF

55,57571,492

63,2863,859,803

3,260,542

③ NOI

(①－②)

(③－⑥)

Book value at end of the period

Property no.

HTL-08Property name

Hotel WBF Art Stay
Namba

1,956,921① Total operating revenue
from real estate leasing
Lease business revenue
Other lease business revenue② Total operating expenses
from real estate leasing
Management fee
Trust fee
Utilities expenses
Insurance premium
Repair expenses

Not disclosed(Note)

Property taxes
Other
③ NOI

(①－②)

④ Depreciation⑤ Operating income (loss)
from real estate leasing(③－④)⑥ Capital expenditures
⑦ NCF

(③－⑥)

Book value at end of the period

1,989,108(Note) Not disclosed because consent for disclosure has not been obtained from the tenants.

－

39

－

2,503,949

3,164,952

Office
Total

Residence
Total

Logistics facility
total

Hotel
total

Portfolio
total① Total operating revenue
from real estate leasing

1,362,266

559,765

931,180

461,698

3,314,911

Lease business revenue

1,247,159

535,853

894,133

445,636

3,122,781

115,107

23,91237,047

16,062

192,129

389,703130,600

165,204

56,115

741,624

Management fee

90,82429,01730,6107,419

157,872

Trust fee

4,362

3,167

3,050

3,200

13,779100,575

13,021

34,684

1

148,284

Other lease business revenue② Total operating expenses
from real estate leasing

Utilities expenses
Insurance premium

2,098

740

1,420

585

4,846

Repair expenses

35,96835,916

13,4908,292

93,667

Property taxes

100,957

26,55077,18735,679240,373

Other

54,91622,1854,760

937

82,800

③ NOI
(①－②)

972,562

429,165

765,975

405,583

2,573,287④ Depreciation

150,274

56,270145,828

79,885432,258⑤ Operating income (loss)
from real estate leasing(③－④)

822,288372,895

620,146

325,697

2,141,028⑥ Capital expenditures

78,403

41,206

42,632

25,971

188,214

⑦ NCF
(③－⑥)

894,159

387,958

723,343

379,6112,385,072

35,149,171

18,972,128

30,690,309

20,525,527

105,337,137

Book value at end of the period

－

40

－

③ Other investment assets
Asset no.

MEZ-04

Name of the security

Star Asia Mezzanine Loan
Debt Investment Series 4Type of asset

Book value(million yen)

Quantity(Units)

Unit
price

－

Loan receivable－

Fair value(million yen)AmountUnit
price

AmountUnrealized
gain or loss
(million yen)

300

－

300

－

Remarks(Note 1)
(Note 2)

(Note 1) Because interest income etc. from mezzanine loan debt are based on floating interest rates, the fair value is approximately the same as thebook value and thus stated at that book value.
(Note 2) The underlying assets are trust beneficiary interests in a trust mainly composed of DS Kaigan Building.

－41－