"Financial Results for the 4th Fiscal Period Ended January 2018"

Star Asia Investment Corporation(Securities CODE 3468)
Star Asia Investment Management

Contents
１．Offering Highlights

2

２． Executive Highlights

6

３．Performance of the 4th Fiscal Period Ended January 201811

４．Future Initiatives

20

５．Appendix

26* In this material, amounts less than specified units are rounded down while ratios are rounded to a specified unit.
* Terms used in this material are defined as below.
“Tokyo area”: “Tokyo area” refers to Tokyo’s 23 wards and the cities of Kawasaki and Yokohama for office properties and retail facilities, and Tokyo andthe three prefectures of Kanagawa, Saitama and Chiba for residential properties, logistics facilities and hotels.

1１．Offering Highlights

2

１．Offering Highlights

Overview of January 2018 Public Offering
Overview of Public Offering

12

Promotion of Growth Strategy by
Leveraging the support of Star Asia Groupand Asset Manager’s Proprietary Network～Boost SAR’s growth based on support by Star Asia Group’s
spreading business lines～

Steadily Increasing Asset Size and Strengthening
Portfolio by Acquiring Middle-size Assets in theTokyo Area

Offering Format

Domestic Offering

Newly Issued Units

56,324 units（Including O.A.)

Amount of offering

5,801 million yen

Offer price

106,724 yen

Issuance resolution date

January 12. 2018

Price determination date

January 22, 2018

Payment dateFebruary 1, 2018

Number of investment units issued andoutstanding after PO

470,624 units

Number of investment units held by theSponsor Group (ratio)

97,000 units（20.6%）~Asset Size of ¥86.0bn after the offering ~Changes in the portfolio
End of 4th FP(As of Jan. 31,
2018)

Achieving Continued Internal Growth3~Portfolio management to pursue improved
profitability and stability~

After
Public Offering

No. of properties

23 properties

29 properties

Total acquisition
price75.3 billion yen

86.0 billion yen

Average appraisal
NOI yield

5.1%

5.1%

Number of tenants

539

679

Ratio of Tokyo area

79.4%

80.1%

3

１．Offering Highlights
Steadily Increasing Asset Size and Strengthening Portfolio by Acquiring Middle-size Assets in the Tokyo Area
~Asset Size of ¥86.0bn after the offering ~Overview of assets : 6 properties that are mainly middle-size assets in the Tokyo Area

List of properties

Acquisition price total

No. of properties

Ratio of middle-size assets

Ratio of properties in the Tokyo area

¥10,743m

6

100%

85.6%

Vs. appraisal value

Avg. NOI yield (appraisal value basis)

98.1%

Second public offering
Nihonbashi Hamacho
Park Building

Average NOI yield after depreciation

5.4%

4.6%

Increase the ratio of properties in the Tokyo Area and improve portfolio stability
Composition by investment area/asset type asof the beginning of the 4th period(acquisition price basis)
The Tokyo Area 79.4%

The Tokyo Area 80.1%

Other 20.6%

OfficeOther 19.9%

Growth potential-driven

52.3%

47.7%

Stability-driven

56.6%

Residence

Office

19.9%

33.3%

Residence

20.6%

Hotel

Chuo-ku, Tokyo

Location

Funabashi, Chiba¥1,450m

Acquisition price¥3,000m

NOI yield (appraisal
value basis)

4.7%

NOI yield (appraisal
value basis)

5.1%

Stability

Asset type

Residential

14.5%

Logistics

Stability

Location

Suita, Osaka

Location

Funabashi, Chiba

Acquisition price¥1,550m

Acquisition price¥821m

NOI yield (appraisal
value basis)

5.7%

NOI yield (appraisal
value basis)

7.0%

Matsubushi Logistics

Stability

Stability

Growth potential-driven

Asset type

Residential

Asset type

Logistics

43.4%

Location

Suginami-ku,
Tokyo

Location

Kitakatsushika,
SaitamaAcquisition price¥1,167m

Acquisition price¥2,755m

NOI yield (appraisal
value basis)

4.9%

NOI yield (appraisal
value basis)

5.5%

Office

30.8%

12.7%
Logistics

32.3%

36.0%

As a result of a two asset replacements
and follow-on offering, asset size grew
and gain on sale was returned tounitholders

18

18

18

properties¥61.4bnproperties¥61.4bnproperties¥61.4bn

At IPOEnd of July 2016

End of January 2017

(April 20, 2016)(End of 1st Fiscal Period)(End of 2nd Fiscal Period)

Mezzanine loan debt
investment
October 2017: Star Asia
Mezzanine Loan Debt
Investment Series 1(subordinated bonds)

Asset replacements + 1st follow-on offering

Portfolio

Total (anticipated)
Acquisition /Disposition priceAggregatedappraisal value

Funabashi Nishiura
Logistics II
Asset type

Hotel

Logistics

Number of properties

Logistics

Location

Urban Park Koenji

Stability-driven

Stability

Asset type

Acquisition priceUrban Park Ryokuchi-koen

Composition by investment area/asset typeafter the offering(acquisition price basis)

Funabashi Nishiura
Logistics I

GrowthAsset type

December 2017: Star Asia
Mezzanine Loan Debt
Investment Series 2(subordinated beneficiaryinterest of trust)

29

23

properties¥86.0bnproperties¥75.3bn

Asset replacement + 1st public offering

August 1, 2017
（Beginning of the 4th Fiscal Period）)

Properties to be acquired

After the offering (Note)29¥86.0bn¥92.8bn
5.1%
679

18

18

18

Acquisition 7 / Disposition 2

23

6¥61.4bn¥61.4bn¥61.4bn

Acquisition of ¥18.0bn / Disposition of ¥6.1bn¥75.3bn¥10.7bn

Finan
cial

¥65.1bn¥66.0bn¥66.7bn¥81.8bn¥ 10.9 bn

Avg. NOI yield (appraisal
value basis)

5.2%

5.2%

5.2%

5.1%

5.4%

Number of tenants

390

390

388

539

139

47.4%

44.8%

46.0%

LTV of total assets

For further
growth withthe supportof theevolving Star
Asia Group

45.8%(Note) Excluding Mezzanine Loan Debt Investment

4１．Offering Highlights

Improved Position in the Capital Market (Asset Size and Distribution Yield)
 Following the IPO, various measures were implemented to maximize unitholder value, with valuation
rising alongside expansion of asset size
End of 1st fiscal period (July 29, 2016)
Distribution yield (%)(Ref.) Conceptual diagram of the correlation between
asset size and risk

End of February, 2018
Distribution yield (%)
After 2nd PO

End of 1st FP

8%

Asset size: ¥61.4bn
Normalized distribution
yield: 6.20%

Asset size: ¥86.0bn
Normalized distribution
yield: 5.20%

7%

 Stability and liquidity improved as a result of asset
expansion following the issue of new investment units
 Anticipated yield expected to fall as the amount ofassumed risk decreases

・Asset/tenant diversification

Risk

・Increased liquidity
・Securing ratings

6%・Inclusion in indices

5%

4%

3%

~

~
0%

Asset size(¥100mn)

2%
0%
100

Asset size

1,000

10,000Asset size(¥100mn)

Expanded assets to ¥86.0bn through the latest PO and subsequent property acquisitions
Aims to accelerate growth and further increase unitholder value with the strong support from its everevolving sponsor
Source: Company disclosures
Note: Calculated based on the latest distribution (excluding optimal payable distribution) as of 2016/7/29 for the end of the 1st FP and 2018/2/28 for the end of February 2018, acquisition price, and investment unit price.
Only SAR uses normalized forecasted distribution as a basis for calculation

5２． Executive Highlights

6

２．Executive Highlights① “ Active Management Strategies” for “Maximization of Unitholders’ Value”“ Active Management Strategies” for “Maximization of Unitholders’ Value”

Implementation in the 4th FP
 Elimination of the rent gap in the office portfolio
 Revision of lease conditions at logistics facilities

Internal
growth Improvement of the occupancy of residences
 Reduction of management expenses
 Maintaining and improving appeal to potential tenants through appropriate capital expenditure and repair(utilization of sponsor support)

External
growth Sponsor Group spread business line
⇒ Execution of Agreement on Preferential Negotiation on HAKUSAN HOUSE
 Invest in mezzanine loan debt , the first J-REIT invested in such assets
 Generation of gain on sale through asset replacement

Financialstrategy Execution of the 2nd public offering Execution of debt financing to diversify repayment dates

 Invitation of new lenders

7

２．Executive Highlights② Change in Cash Distribution per Unit
Returned gain on sale of properties accompanying asset replacement to unitholders as cash distribution.
Retain as internal reserves and secure stability of future cash distributions
Change in CashDistribution per Unit

1st FP

2nd FP

3rd FP

4th FP

5th FP

6th FP

Forecast

829yen3,046yen

4,340yen

4,039yen

2,750yen

2,804yen

16.8%up

Actual968yen2.2%up0.9%up

1.9%up4,077yen

4,423yen

3,112yen

Distribution of gain on sale of properties
from asset replacement ①
4,423yen

Distribution of gain onsale of properties fromasset replacement ②
4,077yenNormalized DPU = DPU when the impact of transient
factors (*) are removed

Impact of transient factors (*) on DPU(*) Transient factors refer to the following:① Gain on sales of real estate properties② Equivalent of fixed property taxes, etc. that are notexpensed due to being included in the acquisition
cost of real estate, etc.
③ Of the expenses related to funding, arrangement
fees for investment unit issuance expenses andborrowings from syndicates of lenders④ Expenditures such as asset management fees
and taxes and public charges (non-deductible
consumption tax, etc.) which fluctuates as a resultof ① through ③⑤ Tax expenses for internal reserves as well as
income tax that increase with internal reserves, etc.

internal
reserves
113mil3,112yen

448

2,664

1,926
△167

+267

2,497

Aim for further increasein cash distribution

1,313
+18

2,764

2,750yen

△22

2,782

44

2,804yen

2,760

△32

第2期実績
2nd FP actual

第3期実績
3rd FP actual

第4期実績
4th FP actual

第5期予想
5th FP forecast

第6期予想
6th FP forecast
8

２．Executive Highlights③Change in Business Results
Cash distribution per unit for the 4th fiscal period was 4,077 yen (+0.9% compared to forecast)(Unit: million yen)
1st FP (ended
July 2016)
actual

2nd FP(ended Jan.
2017)actual

３rd FP(ended July2017) actual

4th FP (ended Jan.
2018) forecast(disclosed on Jan.
12, 2018)

Operating revenue

1,859

2,017

3,211

3,138

3,194

+55

Office rent

634

802

822

786

795

+9

Minami Azabu Shibuya +4 million yen
Nishi-Shinjuku Matsuya Building +2million yen

Residence rent
Logistics rent
Hotel rent

325
581
142

349
530
120

391
642
220

405
696
282

410
696
282

+4
△0
△0

Daikanyama +6 million yen

Other

174

215

235

181

223

+42

Utilities expenses +19 million yen
Revenue from renewal fees +10 million yen
Revenue from restoration +4 million yen

-

-

-

14

14

+0

Interest and dividends, etc. 7 million yen
Upfront fees 7 million yen

-

-

898

771

771

-

711

826

1,113

1,123

1,142

+19

568

624

836

826

841

+15

143
1,147
0
812
335
333
968yen1,538
1,291
1,684yen
-

202
1,190
0
117
1,073
1,072
3,112yen
1,636
1,392
3,820yen
-

276
2,098
0
264
1,833
1,832
4,423yen
1,763
1,476
2,948yen
-

296
2,015
180
1,834
1,769
4,039yen
1,832
1,526
3,149yen
96

300
2,051
0
176
1,876
1,802
4,077yen
1,871
1,566
3,224yen
113

+3
+36
+0
△4
＋42
＋32
＋38yen＋39+40+75yen+16

Mezzanine
Gain on sales of real estate
property
Operating expenses
Expenses related to rent
business
SGA
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Net income
Cash distribution per unit
NOI
Rent revenues/expenses
FFO per unit
Balance of Internal reserves

4th FP (ended Jan Comparison2018) actualwithforecast

Major factors for the difference
from the forecast

Repair expenses +9 million yen
Utilities expenses +8 million yen

9２．Executive Highlights④ForecastDue to materialization of unrealized gain from transfer of owned assets, cash distributions per unit for the 4th FP was 4,077 yen
Cash distributions per unit are forecast to be 5th FP: 2,750yen, 6th FP: 2,804yen.
23property(Unit: million yen)

29property

4th FP(ending Jan
2018)
actual (A)

5th FP(ending July
2018)
forecast (B)

6th FP(ending Jan
2019)
forecast (C)

3,194

2,751

2,732

Rent
revenues/expenses

2,408

2,733

2,713

①

+325

Gain on sales of realestate properties

771

-

-

②

△771

-

Mezzanine

14

18

18

+3

+0

1,142

1,246

1,234

+104

△12

Expenses related torent business

841

977

964

③

+135

SGA

300

269

270

④

△31

+0

2,051

1,504

1,497

△547

△7

0

-

-

△0

-

Non-operating
expenses

176

273

176

Ordinary income

1,876

1,231

1,320

74

0

0

Net income

1,802

1,230

Cash distribution per
unit

4,077

NOI
Rent
revenues/expenses

Operating revenue

Operating expenses

Operating income
Non-operating income

Income taxes

Increase/decrease(B-A)

Increase/decrease
(C-B)

△442

⑤

+97

①

②

③

Major factors for the increase/decrease△19

Factors for increase/decrease in 5th
FP (compared to 4th FP actual)

Factors for increase/decrease in 6th FP(compared to 5th FP forecast)△19①Rent revenues/expenses +325
・Rent and common fees +356
(Assets acquired in 5th FP +332)(Seasonal fluctuation for hotels +10)
・Utilities expenses -15
・Absence of temporary factors(revenues from restoration work,
cancellation penalty fees, etc.) -14②Gain on sales of real estate
properties -771
・Absence of gain on sales in 4th FP③Expenses related to rent business+135
・Assets acquired in 5th FP +95
・Start of expensing of fixed property
taxes, etc. for assets acquired in 3rd
FP +36④SGA -31
・Asset management fee -23
・taxes and public charges (nondeductible consumption tax) -8⑤Non-operating expenses +97
・Interest expenses +21
・Borrowing related expenses +96(Temporary increase in line with new
borrowings and refinancing in 5th FP)
・Investment unit issuance expenses-20⑥ Income taxes -73
・Increase in burden in 4th FP due tointernal reserve①Rent revenues/expenses -19
・Seasonal fluctuation for hotels -10

△13

△96

△645

+89

△73

-

1,319

△571

+89

2,750

2,804

△1,327

+54円

1,871

2,113

2,117

+241

+4

1,565

1,756

1,749

+190

△6

⑥

②Expenses related to rent business -13
・Repair expenses -17③Non-operating expenses -96
・Interest expenses +4
・Borrowing related expenses -93
・Investment unit issuance expenses -7

10

3．Performance of the 4th Fiscal Period
Ended January 201811

3. Performance of the 4th Fiscal Period Ended January 2018
① Occupancy Rate Status

Period-end occupancy rate: 97.8% Portfolio occupancy rate steadily increased as a result of leasing activities in collaboration withleasing agents based on leasing strategies which take into account the features of each property.
オフィス
Office

住宅
Residence

物流施設
Logistics

ホテル
Hotel

全体
Total

4th FP

Hotel

100%

100.0%
Office

98%

99.7%
96%

Total

[Residence]
Successfully increased theoccupancy rate
From 94.2% at the end of 3rd FP
to 97.1% at the end of 4th FP

Residence
97.1%
Logistics
90%

96.9%

2nd FP

3rd FP(24property※)

4th FP(23property)

Office

95.8%

99.2%

98.8％
98.8％

99.7％

Residence

92.5%

92.6%

94.2%

97.1％

Logistics

96.3%

96.3%

96.9%

96.9％

Hotel

100.0%

100.0%

100.0％

100.0％

Total

95.9%

96.8%

97.3%

97.8％

18年01月17年12月17年11月17年10月17年09月17年08月17年07月17年06月17年05月17年04月17年03月17年02月17年01月16年12月

16年11月16年10月

16年09月16年08月16年07月16年06月16年05月

1st FPJan 18Dec 17

Nov 17

Oct 17

Sep 17

Aug 17

Jul 176

Jun 17

May 17

Apr 16

Mar 17

Feb 17

Jan 17

Dec 16

Nov 16

Oct 16

Sep 16

Aug 16

Jul 16

Jun 16

May 16

Apr 16

16年04月88%[Office]
Maintained a level above 99%

97.8%
94%

92%

[Total]The occupancy rate as of the endof the 4th FP is 97.8%, thehighest since the launch of theInvestment Corporation[Logistics facility]
Occupancy is stable as many of
the tenants have concluded fixedterm building lease contracts[Hotel]Occupancy is 100% with full leaseto the hotel operator*End of 3rd FP includes 1 office property (Oak Minami-Azabu)
sold on August 1, 2017.

12

3. Performance of the 4th Fiscal Period Ended Jan 2018
② Office - Eliminating rent gap -Focused on elimination of rent gap: Decreased rent gap from 6.1% (Oct. 2017) to 5.2% at the end of the 4th FP (end of Jan. 2018)
Elimination of the rent gap will continue to be a focus* Market rent refers to the median of each property's expected new contract rent (range) assessed as the end of the period by CBRE K.K., and rent gap refers to the disparity between themarket rent and each tenant's contract rent.

Status of Distribution of Rent Gap at End of Period (based on areas)
73.3%

100%

74.1%

72.0％

revision at the time of contract renewal.
36.1%

80%

35.2%

34.4%

38.9%

37.7%

60%

As of end of 3rd FP：6.8％
As of end of Oct ：6.1%
As of end of 4rh FP：5.2％

Planning to hold negotiations for upward rent revision
37.2%

40%

considering comprehensively other leasing terms andAlthough 74.1% of all properties had rent gap as ofJuly 2017, the figure decreased to 72.0% by theend of 4thd FP due to measures such as soliciting
new tenants, raising rents upon tenant
replacement, and revising rent upward at the timeof leasing contract renewal.

conditions, etc. at the time of contract renewal.

20%

26.8%

25.9%

28.0%

3rdFP
平成29年7月末

Oct 2017
平成29年10月時点

4thFP
平成30年1月末

Aim to extend tenancy and maintain current
rent levels by regularly contacting tenants toimprove their satisfaction level.

0%
Jul 2017～0%0%～10%Jan 2018

10%～

Change in Rate of Increase of Rent with Leasing Contract Renewals（cases）

Increase
増額件数

6

Decrease
減額件数

of rent

16.1%

2

更新時の賃料上昇率
Rate of increaseof rent

10.7%

4

0

＜ Rent gap of office buildings＞

Planning to pursue active negotiations for upward rent

4

Of rent

10.3%

平成28年7月期
The number of

2ndFP
Jan 2017
平成29年1月期

3rdFP Jul 2017平成29年7月期
3rdFP Jul 2017

（５）

（５）

増額件数
Increaseof rent

15

4thFP Jan 2018
平成30年1月期(14)* Increase or decrease of rent is determined by comparison to the rent before rent revision.

*Ratio of the increased portions is calculated as a percentage of total rent of
tenants’ rents before renewal as the denominator

減額件数
Decrease

5.0%

0

0.0%

-5

Of rent

10

10

15.0%

4

5

契約時の賃料上昇率
Rate of increaseof rent

15.0%

1

-2

更新総件数
renewals contract （１）

15.0%

2

-1
1st FP Jul 2016（cases）

20.0%

10.0%

5

1

8.5%

Change in Rate of Increase of Rent with Tenant Replacements

18.6%
4

The number of

新規契約総件数（１）new contract

5.8%

平成29年1月期
2ndFP Jan 2017

（4）

15.0%
10.0%
5.0%

-1
1st FP Jul 2016平成28年7月期

20.0%

平成29年7月期
3rdFP Jul 2017

（11）

0.0%
平成30年1月期
4thFP Jan 2018(5)

*For a case where there is no previous tenant, it is counted as “increase of rent” and theamount of increased rent is determined as “0.”*Ratio of increased portions is calculated as a percentage of total of previous rents for
sections with new tenants.

13

３．Performance of the 4th Fiscal Period Ended January 2018
③ Office - Status of contracts ■A rise in total monthly rent
■Planning to pursue continuous negotiations for upward rent revision at the time of contract renewal going forward
Total Monthly Rent and Change in Average Occupancy
Rate of Office Portfolio（Thousand
yen)

Total
Fee

賃料総額

128,000

稼働率
Occupancy rate

Contract Renewal Time of Office Portfolio

99.7%

12,000.00

99.7%

99.6%

127,000

99.4%

126,500

99.2%
99.0%

98.5%

125,500

98.8%

125,000

98.6%

124,500

123,500

0.7%up

1.6%up127,615

126,738

124,000

98.0%

123,000

97.8%

Jul 2017

平成29年10月末
Oct
2017

4thFP
平成30年1月末
Jan 2018

件数
Cases（cases）

40

10,802.94

35

10,000.00

30

7,839.76

8,000.00

7,348.40

25

6,000.00

20

21

29

37

21

3
15

4,000.00

10

98.4%
98.2%

124,797

平成29年7月末
3rdFP

11,304.32

99.8%

127,500

126,000

面積
Area

（㎡）

2,000.00

973.64
0.00

5
0

5thFP
平成30年7月期

6thFP
平成31年1月期

7thFP
平成31年7月期

8thFP
平成32年1月期

Jul 2018

Jan 2019

Jul 2019

Jan 2020

onward
それ以降*Includes data of “Nihonbashi Hamacho Park Building” acquired on February 2,
2018.

14

３．Performance of the 4th Fiscal Period Ended January 2018
④Overview of office market in the Fukuoka area
Overview of office market in the Fukuoka area
The office market in the Fukuoka area (Fukuoka City) continues to be bullish following improvement in the supply-demand balance since 2011. The area’s vacancy rate continues
to decrease year after year, falling to a historic low in 2017 with large-scale buildings (*1) and medium- to large-scale buildings (*1) each in the 1% range. In addition, the rent
level (per tsubo), too, has been stable with the level for large-scale buildings in the mid 13,000-yen range and medium- to large-scale buildings in the mid 11,000-yen range, which
again goes to show that the office leasing market situation in the Fukuoka area is bullish.
New supply going forward is expected to be contained at a supply area of just approximately 8,800 tsubos in 2018 and approximately 1,600 tsubos in 2019 as shown in Figure 3,
not to mention net absorption area (*2) far exceeding the scheduled supply area going forward from 2018 through 2020 as shown in Figure 4. Taking these and other factors into
account, the state of tight supply-demand is likely to continue.
The average rent unit price at the end of January 2018 for Hakata-eki Higashi 113 Building and Hakata-eki East Place (each classified as medium- to large-scale buildings) thatare in the Investment Corporation’s portfolio was approximately 9,800 yen per tsubo (rent gap of -1,200 yen) for Hakata-eki Higashi 113 Building and 9,300 yen per tsubo (rent gap of 1,700 yen) for Hakata-eki East Place, a rent gap sizeable
enough to anticipate future rent increase and thus likely to contribute to internal growth.
（1）
（２）

（*1）

（*2）

（*3）

（1）
（２）

（２）

（*4）

(Source) Sanko Estate Co., Ltd.

Net absorption

Assumed that the average absorption demand for the past three
Case1 years will continue for the next three years
Assumed that the average absorption demand for the past ten
Case2 years will continue for the next ten yearsNet
absorption
Net
absorption(*1) Large-scale buildings refer to buildings with typicalfloor area of 200 tsubo or more per floor, and medium- tolarge-scale buildings refer to buildings with typical floorarea of 100 tsubo or more but less than 200 tsubo per
floor.
(*2) Net absorption area is the area obtained bysubtracting “the lease floor area of this year” from “thetotal area of the lease floor area of the previous year andthe new supply area of this year.”15

3. Performance of the 4th Fiscal Period Ended Jan 2018
⑤ Logistics facility/Hotel

Logistics facility＜Status of Diversification of Contact Renewal Periods (based on floor area)>
50,000㎡

・Increased rent from the current amount and concluded a 5year fixed-term building lease contract(Rent increase of 2.5% from the previous or an increase ofroughly 5,900 thousand yen/year)
・To increase rent from the current amount and conclude a 3year fixed-term building lease contract(4)

40,000㎡

20,000㎡

(1)

（1）

(2)
（２）

30,000㎡

（1）

(1)
(2)
（２）

10,000㎡（２）

・To implement work that accommodates tenants’ requests aswell as raises the property value・Currently in process for renewal of a long-term fixed-termbuilding lease contract accompanying rent increase(1)0㎡
5期 (H30/7期)
7期 (H31/7期)
8期8thFP(H32/1期) 9期 9thFP(H32/7期)
5thFP 6期 (H31/1期）
6thFP
7thFP

10期以降
10thFP

onwardHotel＜Ratios of fixed rent and floating rent>
4thFP Actual<Other initiatives>

5thFP Forecast
15.5%

10.9%

Floating
変動賃料
rent

10.6%

89.4%

84.5%

89.1%

6thFP Forecast

In the 4th FP, strengthened arrangements for sharing of
information such as sales reports/outlook and market
environments, with hotel operators
Proposed hospitality solutions for improving
lodging convenience and guest satisfaction
among other initiatives.

Fixed
rent

固定賃料

16

3. Performance of the 4th Fiscal Period Ended Jan 2018
⑥ Residence
Residence＜Change in total monthly rent and average occupancy rateof the residential properties ＞
Thousand yen

Total
賃料総額
Fee

63,500Occupancy rate
稼働率

97.1％

63,000

97.5%
97.0%
96.5%

62,50096.0%

62,00061,500

94.3％

95.5%
95.0%

92.6％

94.5%

61,00094.0%
60,50061,003

61,66362,971

3rdFP
平成29年7月末
Jul 2017

Oct 2017
平成29年10月末

4thFP
平成30年1月末
Jan 2018

60,000

93.5%
93.0%

In the 4th FP, worked on residential portfolio management
focusing on improving the occupancy rate.
Raised the occupancy rate and increased rent through closer
cooperation with leasing agents while continuing with the following
initiatives taken in the 3rd FP.
<Urban Park Azabu-juban>
・Renovation for dividing space in order to improve competitivenessand increase rent.
＜ Urban Park Kashiwa＞
・Renovated kitchens, bathrooms and living rooms toenhance functionality and provide a residential environmentthat would strongly appeal to family households
In addition, hired two individuals with abundant experience in asset
management in January 2018. Will aim for further internal growth byfurther developing cooperation with on-site personnel.

＜Increasing rent by strategic Renovation＞●Urban Park Azabu-juban
・Implemented strategic renovation upon restoration
work at the time of tenant moving out⇒ Rent up 19.3%●Urban Park Kashiwa

・Implemented renovation of 5 units⇒ Rent up 0.8% in total amountfor the 5 units

・Implemented floor plan conversion work upon
restoration work at the time of tenant moving out⇒ Converted from 1LDK to 2LDK to cater tofamily households, resulting in rent up 29.5%(compared to before)
17

. Performance of the 4th Fiscal Period Ended Jan 2018
⑦ SAR invest in mezzanine loan debt
 SAR invest in mezzanine loan debt as a measure to pursue maximization ofunitholder value
 Thisinvestment in mezzanine loan debt, which is the first such case by alisted real estate investment corporation

Star Asia Mezzanine Loan Debt Investment Series 1
Haneda Hotel Development GK

 SAR will continuously search for investment targets

Senior loanc. ¥1,840m

１

Underlying
asset

Attractive investment alternative whenreal estate equity prices are expensive

Acquired by third
parties
HOTEL RELIEF (SubordinatedPremiumbonds)
HanedaAppraisal Value¥4,080m

2

3

Increased revenue due to higher afteramortization yields of real estate
portfolios

Serves as an effective investment using
current cash on hand (cash anddeposits) for accretion

4

Return:3M TIBOR+5.0%(Equity)
Silent partnership investment, etc.

Pursuemaximizationof unitholder
valueStar Asia Mezzanine Loan Debt Investment Series 2
GK Japan B Asset

Underlying
asset
SasazukaSouth
Building

Are judged most likely to assure
repayment of principal and interest so
typically considered lower risk thaninvestment in real estate¥301m

Star Asia
Mezzanine Loan
Debt Investment
Series 1(Subordinatedbonds)¥400m

AppraisalValue¥2,800m

Non-recourse
loan
(loan
receivable)

Shinsei Trust &Banking(note)
Preferential beneficiaryinterest
Shinsei Bankc. ¥1,614m

c. ¥1,948m

Star Asia Mezzanine Loan
Debt Investment Series 2(Subordinate
Beneficiary Interest)¥334m(Equity)
Silentpartnershipinvestment,
etc.

(note) Trust with loan claims
as asset in trust (trustee:
Shinsei Trust & Banking
Co. Ltd.) has been
established

Shinsei Trust& Banking

Return:3M TIBOR+5.0%

18

3. Performance of the 4th Fiscal Period Ended Jan 2018
⑩ Financial Standing■Invited new lenders■Reduced refinancing risk and interest rate hike risk by diversifying repayment dates of borrowings and fixing the interest rate
for borrowings due in the 15th FP among new borrowings.
＜ Balance of borrowings (As of March 16, 2018)＞
Balance ofborrowings(unit：mil)Longterm

Interest rate

Term

FP of therepayment
date

7,300 Base rate (Note 1)＋0.30% 2.0 years

5 FP

7,300

0.364%（Note2）

3.0 yeas

7 FP

7,300

0.483%（Note2）

4.0 yeas

9 FP

7,300

0.625%（Note2）

5.0 yeas

11 FP

2,400

0.530%（Note2）

3.5 yeas

10 FP

4,150

0.710%（Note2）

5.0 yeas

13 FP

1,600

0.530%（Note2）

3.5 yeas

10FP

1,190 Base rate (Note 1)＋0.20% 1.1 yeas

7FP

4,690

0.730%（Note2）

5.1 yeas

15FP＜ Diversification of repayment dates (As of March 16, 2018)＞（mil）
10,000
8,000

8,490
7,300

7,300

7,300

6,000

4,690

4,150

4,000
4,000
2,000

0

0

0

0

0
5thFP

6thFP

7thFP

8thFP

9thFP

10thFP 11thFP 12thFP 13thFP 14thFP 15thFP

43,230(Note 1) JBA 1 month yen TIBOR(Note 2) The interest rates shown take into consideration the effects of interest rate swaps(fixing of interest rates).

＜ Bank Formation＞

The Bank of Fukuoka 1.2%

Mitsubishi UFJ

Sumitomo Mitsui＜Mainly financial indicator＞

Resona Bank 8.6%

46.1％（Note)

Balance of borrowings

37,350 mil

43,230 mil

Long-term debt ratio

100.0％

100.0％

Average remaining
period to maturity

2.1 years

2.3 years

Average borrowing period

3.7 years

3.8 years

Average interest rate

0.492％

0.512％

Fixed interest rate ratio

80.5％

80.4％

Mizuho Bank
24.9%

Sumitomo Mitsui Trust
Bank, 13.8%

March, 201845.5％

Shinsei Bank 8.6%
Aosora Bank 8.6%

16th

LTV (based on total assets)

Banking 28.0%

Trust and Banking 6.5%

4th FP(Note) 46.0% when reflecting early repayment (190 million yen) using consumption tax refunds, etc., which is scheduled to be executed in the 6th FP.
*The amounts and figures in the indicators as of March 16, 2018 indicate figures that reflect the interest rate swap set on March 16, 2018 as well as the early repayment (280 million yen) scheduled to be executed in the 5th FP.

19

４． Future Initiatives20

4. Future Initiatives① Points of Focus

Strategies for maximization of unitholders’ value

Points of Focus in and after the 5th Fiscal Period

Internal
growth● Elimination of the rent gap in the office portfolio●Negotiation for rent increase for logistics facilities●Stabilization of the occupancy rate of the residential portfolio(Strengthening of competitiveness through renovation, etc.)●Maintenance and improvement of appeal to potential tenants through appropriate capital expenditure and repair(utilization of sponsor support)●Reinforcement of asset management function ⇒ Increase of investment management personnel by two

External
growth●Expansion of property pipeline from the Star Asia Group which has been expanding its business line
●Further utilization of warehousing function of the sponsor group●Finding businesses through enhanced unique network of the Asset Manager⇒ Appointment of new Director and CIO●Continuous investment in mezzanine loan debt
●Consideration of asset replacement● Continued deliberation on the acquisition of ratings

Financialstrategy● fix interest rate payments for hedge the risk of interest rate fluctuation pertaining⇒ fixed 16th March, 2018
● Invitation of new lender21

4. Future Initiatives② Continuing implementation of active management(proactive management to maximize unitholders’ interest)
アクティブマネジメント（投資主利益の最大化を追求する施策の積極的な実施）の継続的実行
Specific
Initiatives

120,000

Pursuit of optimum portfolio
management

Announced in October 2017
In order to diversify earnings opportunities, invest in
mezzanine loan debt , the first J-REIT invested in such
assets• Asset replacement with the aim of improving
portfolio quality, returns, and stability• Asset transfer that materializes unrealized
gain after reviewing value of owned asset• Approach to minimize rent gap

Star Asia Mezzanine Loan Debt Investment Series 1

115,000
Realizing
maximizationof unitholders’ interest

Promotion of proactive
financial management
110,000

Maintenance/
improvement of cash
distribution
per unit• Reduction of financing costs• Early repayment of borrowings• Introduction of the cumulative investment
system by officers and employees• Consideration of obtaining credit rating•Consideration of acquisition of own
investment units

Announced in March 2017
First follow-on offering

Pursuit of future
external growth/investment
opportunities

Increase in asset size: ¥16.5bn• Obtaining preferential negotiation rights• Utilizing sponsor support (warehousing
function)• Diversification of income earning
opportunities (investment in mezzanine
loan debt)

105,000

100,000

95,000

April

Announced in November 2016

Announced in December 2017

Introduction of cumulative investment
system by officers and employees of theasset manager

We continued to invest in mezzanine loan debt, aneffective investment given the current real estate market
Star Asia Mezzanine Loan Debt Investment Series 2

2016

IPO

Announced in
January 2018
Second public
offering
Increase in
asset size:¥10.7bn

90,000
Announced in December 2016

Announced in February 2017

First asset replacement:

Second asset replacement:

Gain on sale: ¥150m

Gain on sale: ¥1.51bn

85,000

本投資法人
SAR

東証REIT指数
TSE REIT Index

80,000

4.
2016

5

6

7

8

9

10

11

12

1
2017

2

3

4

5

6

(Note) The above indicates relative change of the Index between April 20, 2016 and December 28, 2017, setting the closing index of
1,887.75 on April 20, 2016, as equal to the closing price of ¥98,300 per unit of the SAR investment unit.

7

8

9

10

11

12

1
2018

2

22

4. Future Initiatives③Promotion of Growth Strategy by Leveraging the support of Star Asia Group andAsset Manager’s Proprietary Network～Boost SAR’s growth based on support by Star Asia Group’s spreading business lines～
Star Asia
Asset Advisors

Continuously evolving Star Asia GroupStar Asia Capital Corp.
LimitedStar Asia Japan Special
Situations Fund II – IVStar Asia Groupfunctions

GSA Star Asia
Star Asia Sogo
KaihatsuStar Asia Management
Limited(Sponsor)

Obtain real estatedevelopment function

Began developing special
operational assets, etc.

Spreading business line by expansion offunctions and asset classes

Evolution of the Star Asia
Group has served tostrengthen and expand the
support framework for SAR

Composition to expansion of SAR

Asset classes

Key properties developed & invested in by the Star Asia Group

Diversification of acquisition methods
The sponsor group, holding 20.6% of SAR’s investment units, supports diverse external growth■ Urban Park Gokokuji■ Urban Park Kashiwa■ Urban Park Shin-Yokohama

Acquisitions
through the asset
manager’s
proprietary network

Acquired by leveraging warehousing function■ Urban Park Namba■ Hakata-eki Higashi
113 Building■ Office ■ Residence■ Logistics ■ Hotel

Special situation investing■ Shibuya MK Building■ Asahi Building■ Honmachibashi Tower■ Urban Park Azabujuban■ Urban Park Daikanyama

Star Asia
Mezzanine Loan
Debt Investment
Series 2

executed an agreement on preferential
negotiation right

Investment in mezzanine loan debt

Acquired by leveraging warehousing function

GINZA SIX

■ Tokorozawa
Logistics
Urban Park
Namba

■ Nishi-Shinjuku Matsuya Building■ Minami-Azabu Shibuya Building■ Alphabet Seven

Acquisitions,leveraging Star Asia
Group’s wide range ofrelationships

Star Asia
Mezzanine Loan
Debt Investment
Series 1■ Iwatsuki Logistics■ Yokohama Logistics■ Funabashi Logistics■ Smile Hotel Namba■ R&B Hotel Umeda East

Upon being listed

Urban Park
Gokokuji■ Urban Park
Koenji■ Nihonbashi Hamacho
Park Building(Rendering)

HAKUSAN HOUSE
completion:Feb. 2018 Total beds: 364

Student accommodation property providing a shared space and concierge
service for exchange students from overseas and Japanese students■ Baraki Logistics■ Best Western Yokohama■ Best Western Tokyo Nishikasai■ Hakata-eki East PlaceLEI'S UMEDA(Note) As of the date of this material, each of above properties is not acquired by SAR and there is no guarantee that SAR
will acquire each of above properties. SAR executed an agreement on preferential negotiation right on HAKUSAN
HOUSE. The image of HAKUSAN HOUSE may differ from actual building after completion.

■ Funabashi
Nishiura Logistics I■ Funabashi
Nishiura Logistics
II

Overview of assets under management of the Sponsor Group(appraisal value basis)(as of the end of September 2017)
Other

Baraki Logistics BEST WESTERN BEST WESTERN Hakata-eki
Yokohama
Tokyo Nishikasai East Place

Until the 1st public offering■ Matsubushi
Logistics■ Urban Park
Ryokuchi-koen

Acquired properties in the 4th fiscal period(incl. Mezzanine Loan Debt Investment
Series)

Hotel

Office

30.1%

43.9%

10.7%
The Tokyo Area

Asset type
Logistics

Location(Purpose)

89.3%

3.4%
Residence

6.0%
Commercial

16.6%

55.1bn23

４． Future Initiatives④Summary of the agreement on preferential negotiation
About HAKUSAN HOUSE
HAKUSAN HOUSE is a student accommodation property for international students and Japanese students constructed in Hakusan, Bunkyo-ku, Tokyo, with a
total floor area of 5,137.70 m2 and 175 rooms/364 beds. It has a full range of common spaces and is also equipped with facilities and services such as
concierge services.
With the first project HAKUSAN HOUSE, UNINEST, a brand for global student accommodations of GSA Group, arrived in Japan for the first time to provide
Japanese students and international students with residential spaces as well as a common space to form a community.
※As of the date of this material, Hakusan House is not acquired by SAR and there is no guarantee that SAR will acquire each of above properties.

■Nearby universities with many international students

Premium Nest

Rikkyo Univ.
Ikebukuro campus

Location

4 Hakusan, Bunkyo-ku, Tokyo

Site area

1,134.01㎡

Total floor
space

5,137.70㎡

Structure/
Number ofstories

Steel structure (partly reinforced
concrete) /9 stories above the groundStar Asia Investment Corporation

Rooftop Terrace

Study Living Room

Share Nest

Ochanomizu Univ.
Gakushuin Univ. Japan Women’s Univ.
IMejiro campus Mejiro campus
Waseda Univ.
Waseda campus

University

Tsukuba Univ.
Tokyo campus
Toyo Univ.
Hakusan campus

1

Waseda University

4,767

HAKUSANHOUSE

2The University of Tokyo

3,260

3

Tokyo University of Social Welfare

3,000

4

Ritsumeikan Asia Pacific University

2,818

5

Japan University of Economics

2,708

6

University of Tsukuba

2,326

7

Osaka University

2,184

Ueno
StationThe Univ. of Tokyo
Chuo Univ. Hongo campus
Ko-rakuen campus

Housei Univ.
Ichigaya campus

No. ofinternational
students（note）

Meiji Univ.
Suruga-dai campus
Sensyu Univ.
Kanda campus(Source) IAJ Japan Student Services Organization(Note) Number of international students for universities provided above is the total for all the campuses combined24

4. Future Initiatives⑤ Future Growth Strategy

Future Growth Strategy: Expand asset size to 200 billion yen by 2020

StableGrowthGrowth Phase2000

Acquisition goal
35 billion yen per year

1800
1600
1400
1200
1000
800

Asset of 437
billion yen
Beganoperations
with private
placement

At the time oflisting
Additional property
acquisition worth
11.7 billion yen
Total: 61.4 billion

1st PO
Asset replacement
Total：75.3 billion(※)

2nd PO
Total：86.0billion

600
400
200
0
平成28年1月私募時
Private Reit

Jan 2016

平成28年4月
IPO
Apr上場時2016

平成28年7月
1stFP
Jul 第1期末2016

平成29年1月
2ndFP
Jan第2期末
2017

平成29年７月
3rdFP

平成30年1月
4thFP

平成30年3月
Feb 2018

Jul第3期末
2017

Jan
2018
第4期末

現在

平成32年

2020

Realization of speedy and steady external growthby sponsor support and asset management company's own route* Excludes the office building (Oak Minami-Azabu) sold on August 1, 2017.

25

５．Appendix

26

Balance Sheets for the 4th Fiscal Period ended January 31, 2018
(Unit: thousand yen)
3ｒd fiscal period(As of July31, 2017)

４ｔｈ fiscal period(As of January 31, 2018)

Assets

3ｒd fiscal period(As of July31, 2017)

４ｔｈ fiscal period(As of January 31, 2018)

Liabilities

Current assets

Current liabilities

Cash and deposits

1,598,847

1,667,713

Cash and deposits in trust

3,239,091

3,153,262

Operating accounts receivable

52,74544,669Current portion of long-term loans payable

Prepaid expenses

108,945

90,216

Accounts payable - other20-

Accrued expenses

7,030

6,054

261,743-

Income taxes payable

1,023

74,345

Accrued consumption taxes

12,7341256,003

Advances received

589,678

338,283

Deferred tax assets
Consumption taxes receivable
Other
Total current assets

-

5,354

5,261,393

4,961,216

Non-current assets

Operating accounts payable

Long-term loans payable

30,050,000

30,050,000

Tenant leasehold and security deposits in trust

1,863,336

1,794,980

24,909,318△ 1,055,284

Buildings in trust, net

24,242,289

23,854,033

9,606

9,606

Other

△397

△ 733

Total non-current liabilities

Non-current liabilities

Structures in trust, net

9,209

8,872

Machinery and equipment in trust

11,27020,707

Accumulated depreciation△499△ 1,240

Machinery and equipment in trust, net

10,771

19,467

Unitholders’ capital

Tools, furniture and fixtures in trust

9,971

20,207

Surplus

Accumulated depreciation△1,228△ 2,314

8,743

17,892Land in trust

50,426,286

48,929,717

Total property, plant and equipment

74,697,300

72,829,984

Tools, furniture and fixtures in trust, net

Intangible assets

289,696

10,925△764,163

Accumulated depreciation

7,300,000

269,194

8,437,613

25,006,453

Structures in trust

8,680,000

9,796,897

Total current liabilities

Accumulated depreciation

Buildings in trust

292,305

9,492

Other

Property, plant and equipment

227,743

Total liabilities

6,635

1,507

31,919,971
41,716,869

31,846,487
40,284,100

40,031,185

40,031,185

1,832,669

1,802,393

Net assets
Unitholders’ equity

Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders’ equity

1,832,669

1,802,393

41,863,855

41,833,579

Valuation and translation adjustments

Leasehold rights in trust

3,459,138

3,459,138

Deferred gains or losses on hedges

28,68636,966

Total intangible assets

3,459,138

3,459,138

Total valuation and translation adjustments

28,68636,96641,892,541

41,870,546-

734,500

83,609,410

82,154,646

Long-term prepaid expenses

146,256

121,333

Lease and guarantee deposits

10,00010,000Other

35,321

38,473

Total investments and other assets

191,577

904,307

78,348,016

77,193,430

83,609,410

82,154,646

Investments and other assets
Investments securities

Total non-current assets
Total assets

Total net assets
Total liabilities and net assets

27

Statement of Income for the 4th Fiscal Period(From August 1, 2017 to January 31, 2018)(Unit: thousand yen)
3rd fiscal period
From: February 1, 2017
To: July 31, 2017

4th fiscal period
From: August 1, 2017
To: January 31, 2018

Operating revenue
2,146,216
Lease business revenue
2,255,617
166,563
Other lease business revenue
152,654898,612Gain on sales of real estate property
771,663
Others
14,412
3,211,392
Operating expenses
3,194,348
Expenses related to rent business
836,576
Expense related to rent business
841,650
189,465
Asset management fee
211,612
16,912
Asset custody and administrative service fees
19,5152,400
Directors’ compensations
2,400
67,794
Other operating expenses
67,331
1,113,150
Total operating expenses
1,142,509
2,098,241
Operating income
2,051,838
Non-operating income
21Interest income
24Interest on refund
771
21
Total non-operating income
795
Non-operating expenses
82,120Interest expenses
92,575
129,149
Borrowing related expenses
55,58748,461
Investment unit issuance expenses
27,928
5,000
Other
－
264,731
Total non-operating expenses
176,091
1,833,531
Ordinary income
1,876,542
1,833,531
Income before income taxes
1,876,542
1,026
Income taxes - current
74,348△8
Income taxes - deferred
20
1,018
Total income taxes
74,3691,832,513
Net income
1,802,173
表示単位未満を切り捨てて表示しております。
155
Retained earnings brought forward
220
1,832,669
Unappropriated retained earnings (undisposed loss)
1,802,393

28

Period-end Appraisal Value and Indicators(Unit: million yen)
Property name

Period-end appraisal value:

82,680 million yen

officeAcquisiti
on price① Period-end
book value②Appraisal
value at end of
3rd fiscal period

Unrealized
gains (losses)②－①

Minami-Azabu Shibuya Building

2,973

3,005

3,150

144

Honmachibashi Tower

6,065

6,028

6,920

891

Total book value:

76,289 million yen

Nishi-Shinjuku Matsuya Building

1,763

1,824

2,430

605

Period-end unrealized gains(losses):

6,390 million yen

Alphabet Seven

1,725

1,802

2,330

527

Shibuya MK Building

2,042

2,084

2,810

725

Net assets per unit:

101,062 yen

Hakata-eki Higashi 113 Building

1,885

1,958

2,070

111

Unrealized gains per unit:

15,426 yen

Asahi Building

6,320

6,354

6,890

535

NAV per unit (*1):

112,412 yen

Hakata-eki East Place

2,286

2,310

2,480

169

subtotal

25,05925,36829,0803,711

P/NAV per (*2):

0.97

Urban Park Azabujuban

2,045

2,098

2,170

71

Urban Park Daikanyama

6,315

6,420

7,310

889

Urban Park Shin-Yokohama

2,528

2,578

2,580

1

Urban Park Namba

1,490

1,542

1,610

67

Urban Park Gokokuji

1,460

1,495

1,510

14

Urban Park Kashiwa

1,186

1,251

1,190

△62

subtotal

15,024

15,38816,370981

Iwatsuki Logistics

6,942

6,831

7,130

298

Yokohama Logistics

3,560

3,732

4,050

317

Funabashi Logistics

7,875

7,908

8,560

651

Baraki Logistics

4,700

4,722

4,890

167

Tokoyozawa Logistics

1,300

1,349

1,400

50

subtotal

24,377

24,544

26,0301,485

R&B Hotel Umeda East

2,069

2,135

2,290

154

Smile Hotel Namba

1,750

1,724

1,750

25

Best Western Tokyo Nishi-kasai

3,827

3,862

3,890

27

Best Western Yokohama

3,248

3,266

3,270

3

(*1) NAV per unit = (Period-end net assets + Periodend unrealized gains – Total cash distribution) /Total number of investment units issued andoutstanding(*2) P/NAV＝Investment unit price / NAV per unit
(Investment unit price on January 31, 2018:
108,700 yen)

Residence

Logistics

Hotelsubtotal
Total

10,894

10,988

11,200211

75,35476,28982,6806,390

29

Portfolio List (at the end of the 4th Fiscal Period)
Property name

OfficeResidence

Logistics

Hotel

Location

Acquisition
price(million yen)Appraisalvalue(million yen)

Investment ratio

Appraisal NOI yield

OFC-01

Minami-Azabu Shibuya Building

Minato Ward, Tokyo

2,973

3,150

3.9%

4.9%

OFC-03

Honmachibashi Tower

Osaka City, Osaka

6,065

6,920

8.0%

5.1%

OFC-04

Nishi-Shinjuku Matsuya Building

Shibuya Ward, Tokyo

1,763

2,430

2.3%

6.3%

2,330

2.3%

5.8%

OFC-05Alphabet Seven

Minato Ward, Tokyo

1,725

OFC-06

Shibuya MK Building

Shibuya Ward, Tokyo

2,042

2,810

2.7%

5.6%

OFC-07

Hakata-eki Higashi 113 Building

Fukuoka City, Fukuoka

1,885

2,070

2.5%

5.8%

OFC-08Asahi Building

Yokohama City, Kanagawa

6,320

6,890

8.4%

4.9%

OFC-09Hakata-eki East Place

Fukuoka City, Fukuoka

2,286

2,480

3.0%

5.2%

RSC-01

Urban Park Azabujuban

Minato Ward, Tokyo

2,045

2,170

2.7%

4.4%

RSC-02

Urban Park Daikanyama

Shibuya Ward, Tokyo

6,315

7,310

8.4%

4.8%

RSC-04

Urban Park Shin-Yokohama

Yokohama City, Kanagawa

2,528

2,580

3.4%

4.8%

RSC-05

Urban Park Namba

Osaka City, Osaka

1,490

1,610

2.0%

5.4%

RSC-06

Urban Park Gokokuji

Toshima Ward, Tokyo

1,460

1,510

1.9%

5.1%

RSC-07

Urban Park Kashiwa

Kashiwa, Chiba

1,186

1,190

1.6%

5.1%

LGC-01

Iwatsuki Logistics

Saitama City, Saitama

6,942

7,130

9.2%

4.8%

LGC-02

Yokohama Logistics

Yokohama City, Kanagawa

3,560

4,050

4.7%

5.7%

LGC-03

Funabashi Logistics

Funabashi City, Chiba

7,875

8,560

10.5%

5.4%

LGC-04

Baraki Logistics

Ichikawa City, Chiba

4,700

4,890

6.2%

4.5%

LGC-05Tokorozawa Logistics

Tokorozawa City, Saitama

1,300

1,400

1.7%

6.0%

HTL-01R&B Hotel Umeda East

Osaka City, Osaka

2,069

2,290

2.7%

5.6%

HTL-02

Smile Hotel Namba

Osaka City, Osaka

1,750

1,750

2.3%

5.6%

HTL-03

BEST WESTERN Tokyo Nishi-kasai

Katsushika Ward, Tokyo

3,827

3,890

5.1%

4.8%

HTL-04

BEST WESTERN Yokohama

Yokohama City, Kanagawa

3,248

3,270

4.3%

4.8%

82,680100.0%

5.1%

合計

75,35430

Portfolio List (at the end of the 4th Fiscal Period)
Asset type

OfficeOfficeOfficeOfficeOfficeOfficeProperty nameMinami-Azabu Shibuya
Building

Honmachibashi Tower

Nishi-Shinjuku Matsuya
Building

Alphabet Seven

Shibuya MK Building

Hakata-eki Higashi 113
Building

Acquisition price

2,973 million yen

6,065 million yen

1.763 million yen

1,725 million yen

2,042 million yen

1,885 million yen

Appraisal value

3,150 million yen

6,920 million yen

2,430 million yen

2,330 million yen

2,810 million yen

2,070 million yen

Structure/Floors

SRC B1/7F

S/SRC B1/21F

SRC B1/9F

RC B1/6F

S 6F

SRC 8F

Location

Minato Ward, Tokyo

Osaka City, Osaka

Shibuya Ward, Tokyo

Minato Ward, Tokyo

Shibuya Ward, Tokyo

Lot area

766.11 m2

589.94 m2(surface right)

1,286.45 m2

2

2

2

1,982.86 m

Jan 31, 1990

Jul 31, 1993

Total floor areas

4,137.21 m

15,407.83 m

Construction
completion

Jun 15, 1993

Feb 8, 2010

Property Features●Located in Minami-Azabu, awell-known, high-classresidential area that is also
home to embassies of various
countries.
●In addition to access by train,
the area is well served by bus
routes and provides convenient
access to various locations
within central Tokyo.
●The area is highly appealing tocompanies in fashion, mass
media, and IT-related fields.

620.42 m(of which 2.62 m2
leasehold)1,274.37 m2

2

5,117.80 m

May 28, 1987

Fukuoka City, Fukuoka

24,132.80 m

2950.75 m2
4,888.70 m2(including 17.25 m2pump room)
Oct 3, 1987

●Located in the Yodoyabashi /●Located in the Nishi-Shinjuku●Located in the Akasaka●Located in the Shibuya area, ●Located in the Hakata-ekiHommachi area, one of Osaka’s
area, which has a higharea, one of central
one of Japan’s leading
higashi area where there is aleading office districts.
concentration of office buildings. Tokyo’s leading
commercial districts, thehigh concentration of office
office/commercial districts.
property has a strong appeal
buildings.
●Situated near facilities such as●In addition to access by train,
for fashion and IT-related●The property is expected●Thanks to the renovatedthe Osaka Chamber of
the area is well served by bus
companies.
Commerce and Industry,
routes and provides convenient
to attract strong demand
entrance hall and common
MyDome Osaka, and City Plaza
access to various locations
from affiliated companies ●Following the completion ofareas on each floor, it
Osaka, the area has a highwithin central Tokyo.
of tenants of the TBS
the Shibuya Station area
appeals to tenant companies
concentration of office buildings. ●The property is expected tobuilding, Akasaka Biz
redevelopment project,from a wide range of fields.
Tower, etc.
further development is●The residences on the upper●With the completion of theattract strong demand fromfloors of the building offer
affiliated companies of tenants ●Thanks to the popularity of expected going forward.
Hakata Station area
excellent views overlookingof large-scale buildings locatedthe area, location
redevelopment project,landmarks such as Osakain Shinjuku sub-center or its
conditions, etc., there isfurther development is
Castle.
surrounding area
also strong demand for
expected going forward.
the residential units of theproperty.

31

Portfolio List (at the end of the 4th Fiscal Period)
Asset type

OfficeOfficeResidence

Residence

Residence

Residence

Property name

Asahi Building

Hakata-eki
East PlaceUrban Park Azabujuban

Urban Park Daikanyama

Urban Park ShinYokohama

Urban Park Namba

Acquisition price

6,320 million yen

2,286 million yen

2,045 million yen

6,315 million yen

2,528 million yen

1,490 million yen

Appraisal value

6,890 million yen

2,480 million yen

2,170 million yen

7,310 million yen

2,580 million yen

1,610 million yen

Structure/Floors

S/SRCB2/12F

SRC 9F

SRC with slate roofing
B1/12F

RC, B1/3F
RC, B1/9F

S
B1/10FRC 14F

Location

Yokohama City, Kanagawa

Fukuoka City, Fukuoka

Minato Ward, Tokyo

Shibuya Ward, Tokyo

Yokohama City, Kanagawa

Osaka City, Osaka

Lot area

1,906.86 m2

1,129.86 m2

417.67 m2

2,469.06 m2

862.00 m2

670.39 m2

Total floor areas

12,353.83 m2

6,243.13 m2

2,564.94 m2

8,261.29 m2(for 2 buildings combined)

5,171.12 m2

2,776.87 m2

Construction
completion

Nov 25, 1994

Feb 24, 1986

Nov 29, 1999

1:Nov 15, 1987
2:May 30, 2006

May 30, 2009

Jan 9, 2013

Property Features●Located in the Yokohama●Located in the Hakata●Located in Azabu-Juban,●Located in the Daikanyama ●Located in the Shin●Located near Namba, one of
Station East area, which
Station West Exit area wherean area with an elegant
area, which produces the
Yokohama area, which
Osaka’s leading commercial
has a higher
there is a high concentration ofimage that also boasts
latest trends.
provides convenientareas.
concentration of officescommercial and office buildings.
popular appeal.
transportation access.
●In addition to a stately tiled●In addition to an elegant●The floors can be subdivided into after the completion of●In addition to a stately tiled
facade, the property is fully ●In addition to an elegant
facade, the building is fully
redevelopment projects in facade, the property is fully
smaller spaces, enabling theequipped with premium
facade, the building is fully
equipped with premium
front of the station.
building to flexibly accommodate
equipped with premium
household facilities.
equipped with premium
household facilities.
●Even more vitalization isdemand from branch offices ofhousehold facilities.
household facilities.
●Adjacent to the Shibuya●The influx of population into
expected for the Fukuoka ●Adjacent to the Roppongicompanies in various fields.
and Ebisu areas, which are ●Access to central Tokyo will
central Osaka due to the(Hakata) area with the●With the completion of thearea, a leading shopping
leading shopping spots inimprove considerably with
impact of strong in-boundstart of “Tenjin Big Bang
Yokohama Station area
spot in central Tokyo.
central Tokyo.
the opening of direct services demand has had a stabilizing
Project” and theredevelopment project and thelinking the Sagami andeffect on occupancy rates.
extension of some
Excite Yokohama 22 project,
Tokyu railway lines.
Fukuoka City Subway
further development is expectedlines.
going forward

32

Portfolio List (at the end of the 4th Fiscal Period)
Asset type

Residence

Residence

Logistics

Logistics

Logistics

Logistics

Property nameUrban Park Gokokuji

Urban Park Kashiwa

Iwatsuki Logistics

Yokohama Logistics

Funabashi Logistics

Baraki Logistics

Acquisition price

1,460 million yen

1,186 million yen

6,942 million yen

3,560 million yen

7,875 million yen

4,700 million yen

Appraisal value

1,510 million yen

1,190 million yen

7,130 million yen

4,050 million yen

8,560 million yen

4,890 million yen

Structure/Floors

RC B1F/5F

SRC B1F/8F

Steel construction, zincplated steel roofing, 5floorsRC 8F

Building 1: Steel construction, flat roof,
zinc-plated steel roofing, 8 floors
Building 2: Reinforced concrete structure

RC S 5F

Location

Toshima Ward, Tokyo

Kashiwa City, Chiba

Saitama City, Saitama

Yokohama City,
Kanagawa

Funabashi City, Chiba

Ichikawa City, Chiba

Lot area

942.66m2

1,597.85m2

15,623.14 m2

10,565.95 m2

19,858.00 m2

6,242.76m2

2

29,729.72 m

2

18,395.07 m2(including 263.33m2
break areas etc.)

38,871.45 m2（two buildings combined）

12,471.50 m2

Aug 28, 1997

Oct 29, 2014

Oct 1, 1994

1:Sep 25, 1992
2:Aug 5, 1997

Aug 14, 20152

Total floor areas

2,451.72m

Construction
completion

Feb 28, 1990

Property Features

4,243.71m●Located in an area with
●Located in the Kashiwa area, ●Located in the Iwatsuki area, ●Located in the Yokohama ●Located in the Chiba bay●A multi-tenant logistics facility located near thestrong demand from various
a leading bed town in Chiba,
which offers access to thebay area, where there arearea, where there are many
Wangan Ichikawa IC of the East Kantō
tenant groups for single-type
with an excellent access tocentral Tokyo, northern
many logistics facilities.
logistics facilities.
Expressway.
residences, due to theCentral Tokyo.
Kanto, and Tohoku areas.
●Equipped with
●Equipped with specifications ●Enjoys good access to Central Tokyo as welllocation characteristics of●Further medium to long-term ●Equipped with specifications
specifications that offer athat offer a high level ofas the consumption areas throughout Chiba,
having concentration of
growth is expected in thethat offer a high level ofhigh level of versatility,
versatility, such as vehicle
allowing tenants to respond to the needs of euniversities and juniorarea, with completion ofversatility, such as the
such as vehicle berths,
berths, floor height, andcommerce operators.
colleges as well as Toshima
various redevelopment plansvehicle berths, floor height,
floor height, and column
column interval.
●Located within approx. 5-minute walk fromward having a relatively highin front of Kashiwa Station.
and column interval.
interval.
●In addition to accessing
Futamata-Shinmachi station on the JR Keiyo
ratio of single households.
●The property is situated in a ●In addition to accessing
Central Tokyo, it is possible
Line, allowing for securement of employees.
zone of Saitama City thatCentral Tokyo, it is possible to access the wider Tokyo●Property with highly versatile specifications,offers incentives for logistics
to access the wider Tokyo
area thanks to the opening ofincluding one passenger elevator, two freightfacilities and therefore
area thanks to the opening
the Gaikan Expressway
elevators, a floor height of approx. 6.5 m and abenefits from considerableof the Shinagawa section
pillar span of approx. 9 m-11 m.
government support.
of the Shuto Expressway●Fully occupied by foreign companies andCentral Circular Route.
foreign 3PL companies.

33

Portfolio List (at the end of the 4th Fiscal Period)
Asset type

Logistics

Hotel

Hotel

Hotel

Hotel

Property name

Tokorozawa Logistics

R&B Hotel Umeda East

Smile Hotel Namba

Best Western Tokyo Nishi-kasai

Best Western
Yokohama

Acquisition price1,300 million yen

2,069 million yen

1,750 million yen

3,287 million yen

3,248 million yen

Appraisal value

1,400 million yen

2,290 million yen

1,750 million yen

3,890 million yen

3,270 million yen

Structure/Floors

S 2F

RC 9F

S 9F

SRC B1F/9F

SRC B1F/9F

Location

Tokorozawa City, Saitama

Osaka City, Osaka

Osaka City, Osaka

Edogawa Ward, Tokyo

Yokohama City, Kanagawa

Lot area

8,645.63m2

730.26 m2

285.28 m2

1,418.00m2

782.66m2

Total floor areas

5,994.75 m2

3,945.65 m2

1,711.42 m2

5,293.88m2

4,686.09m2

Construction
completion

Apr 30, 1999

Oct 20, 2000

Feb 6, 2008

Mar 19, 1991

Sep 21, 1987

Property Features●A multi-tenant logistics facility used also ●Located near Umeda, one of●Located near Umeda, one of ●A business hotel located within
as a warehouse, located around 8.7 km
Osaka’s leading office andOsaka’s leading office andapprox. a 2-minute walk fromfrom the Tokorozawa IC on the Kan-Etsu
commercial areas.
commercial areas.
Nishikasai Station of Tokyo Metro
Expressway.
Tozai Line.
●With over 200 single-occupancy●In addition to excellent●Good access to Central Tokyo, and also
●Excellent location characteristics
rooms, the hotel is able toaccess to Namba, locatedcapable of covering a wide range ofaccommodate significant businessnear Osaka Dome,that can attract a fair amount ofdestinations for consumption in theand tourism-based demand.
addressing multiple businessTokyo Disneyland-related leisureTokyo Metropolitan area with the opening ●Due to the impact of strong inand tourism-based demand.
travelers, as it stands in a straightof the Gaikan Expressway and theline distance of approx. 4 km away
●Due to the impact of strong
bound demand in Osaka, further
Metropolitan Inter-City Expressway.
from Tokyo Disneyland.
hotel demand is expected.
in-bound demand in Osaka,●Property with highly versatile●A hotel with great appeal to afurther hotel demand isspecifications, including two freightexpected.
variety of guests with various types
elevators, a floor height of approx. 5.5 mof guest rooms depending on the
6.0 m, and a pillar span of approx. 9.5 m.
intended use.

●A business hotel located within approx.
4-minute walk from “Tsurumi” Stationon the JR Keihin Tohoku Line and a 3minute walk from “Keikyu Tsurumi”
Station on the Keihin Kyuko Line.
●Excellent location characteristics that
can attract both business travelers andleisure travelers, as its location has
good access to the major areas in
Kanagawa including Yokohama andKawasaki as well as to Haneda Airport.
●A hotel with great appeal to a variety ofguests with various types of guest
rooms depending on the intended use.

34

Portfolio List (the second public offering )Asset type

OfficeResidential

Residential

Logistics

Logistics

Logistics

Property nameNihonbashi Hamacho Park
Building

Urban Park Ryokuchikoen

Urban Park Koenji

Funabashi Nishiura
Logistics I

Funabashi Nishiura
Logistics Ⅱ

Matsubushi Logistics

Acquisition price

1,450 million yen

1,550 million yen

1,167 million yen

3,000 million yen

821 million yen

2,755 million yen

Appraisal value

1,520 million yen

1,570 million yen

1,170 million yen

3,010 million yen

833 million yen

2,850 million yen

Structure/Floors

SRC 11F

RC 8F

RC 4F

R 2F

R 4F

RC 3F

Location

Chuo Ward, Tokyo

Suita City, Osaka

Suginami Ward, Osaka

Funabashi City, Chiba

Funabashi City, Chiba

Kita Katsushika-gun, Saitama

Lot area

319.04㎡

2,804.56㎡

988.26㎡

7,142.00㎡

3,964.00㎡

11,580.65㎡

Total floor areas

2,384.03㎡

5,854.64㎡

1.524.34㎡

14,018.82㎡

6,316.32㎡

19,833.47㎡

Construction
completion

Jul 13, 1992

Mar 10,1989

Oct 13, 1987

Oct 11, 1985

1:Mar 20, 1991
2:May 15, 1972
3:May 13, 1986

Mar 31, 1997

Property Features●Located in Nihonbashi Hamacho ●Located in the Ryokuchiarea, allowing easy access tokoen area, with good traffic
major business areas in Central
accessibility, providing a lush
Tokyo and use of various railways greenery living environment
such as “Hattori Ryokuchi●A number of major companies
have their head offices in this area, koen”●Popular residential area
as it is a very attractive area forcompanies in various fields and of primarily for families since itvarious sizes
is located in the Hokusetsu●Further development of the area area, which has a high levelis expected considering that it not of education
only has characteristics of an office ●Appealing primarily for
area, but also has characteristics
families since some of theof residential and tourism areas
units have been renovatedand since it is equipped with
substantial grade household
equipments●Located in Koenji area, which ●Appealing from a standpoint of ●Appealing from a standpoint of ●Located in Matsubushi area,
allows for easy access to major securing workforce, as it issecuring workforce, as it iswith easy access to nearby areas
areas in the Tokyo metropolitan conveniently located in theconveniently located in the Chiba such as Saitama Prefecture andarea
Chiba Bay area, where there
Bay area, where there are many Chiba Prefecture, in addition toare many logistics facilities, and logistics facilities, and it isKita-Kanto, Joban, and Tohoku●With many shopping areas,
it is located at approx. 1.4km
located at approx. 1.1km fromareas
discount supermarkets,from the closest train station
the closest train station●Provided with versatilerestaurants and pubs, having ahigh appeal to young single●In addition to Access to●In addition to Access to Central specifications, such as loading
person households of businessCentral Tokyo, the location
Tokyo, the location allows easy berths, cargo elevators, highperson and students
allows easy access to wideaccess to wide range of areas
ceiling, and a pillar span
range of areas throughout
throughout Tokyo via partial●Very popular residential area
●Back ups from the local
with its own unique culture, which Tokyo via partial opening of the opening of the Gaikan
government through activities byExpressway
can be seen in its cafes, vintage Gaikan Expressway
Saitama Prefecture to attract
clothing shops, and clubs withcompanies (the “Chance Maker●The facility is provided with
●The facility is provided withlive music, amongst otherhighly versatile specifications
highly versatile specifications
Saitama Strategy”)
locationssuch as high-ceiling floors and such as high-ceiling floors and aa pillar spanpillar span

35

Balance of Payments of Individual Properties for the 4th Fiscal Period(Unit: thousand yen)
OFC-01

MinamiAzabu
Shibuya
Building
Total of revenue realestate lease
Lease businessrevenue
Other lease businessrevenue
Total of expenses - realestate lease

OFC-03

OFC-04

OFC-05

OFC-06

OFC-07

NishiHonmachiba Shinjuku
shi Tower
Matsuya
Building

Alphabet
Seven

Shibuya Hakata-eki
MKHigashi 113
Building
Building

OFC-08

OFC-09Asahi
Building

Hakata-eki
East Place

OfficeTotal

90,118215,20290,08977,246

74,20574,613

210,183

95,276926,936

83,548

188,980

81,43570,96868,94667,315

193,117

84,697

839,009

6,570

26,221

8,654

6,278

5,258

7,298

17,066

10,57887,92627,99363,726

34,601

22,933

20,811

26,182

56,86622,865

275,349

PM fees

5,735

13,440

6,656

4,902

4,829

7,406

15,648

8,396

67,016

Trust fees

500

480

500

500

430

430

480

480

3,800

Utilities expenses

6,806

24,891

8,132

5,547

3,648

7,100

17,507

10,35883,360Insurance expenses

127

390

139

109

47

135

387

184

1,522

Repair expenses

922

2,427

1,086

5,202

4,931

3,736

4,251

2,568

25,127

Taxes and public dues

4,574

19,683

3,222

5,768

4,192

5,073

16,021-58,535

Other

9,327

2,412

14,864

903

2,731

2,299

2,569

878

35,987

NOI

62,125

151,475

55,48854,31353,394

48,431

153,317

72,410651,586

Depreciation

10,74944,891

7,157

4,117

2,619

5,728

22,435

6,411

104,111

Income from real estate
property leasing

51,375

106,584

48,33150,19550,77442,703130,881

65,999547,475

Capital expenditures

12,955

3,168

14,79912,013

19,5536,600

30,544

3,981

103,618

NCF

49,169148,306

40,68842,29933,84041,831

122,772

68,429547,33836

Balance of Payments of Individual Properties for the 4th Fiscal Period(Unit: thousand yen)
RSC-01

RSC-02

RSC-04

RSC-05

RSC-06

RSC-07

Urban Park
Azabujuban

Urban Park
Daikanyama

Urban Park
ShinYokohama

Urban Park
Namba

Urban Park
GokokujiUrban Park
Kashiwa

Residence
Total

Total of revenue real estate
lease

55,465

190,353

70,61651,04946,40735,706449,598

Lease business revenue

51,645

182,557

69,201

48,21044,91034,482431,008

Other lease businessrevenue
Total of expenses - real estate
lease

3,819

7,796

1,415

2,838

1,496

1,224

18,59011,86934,523

21,153

13,58813,863

7,697

102,696

PM fees

2,142

8,681

4,698

2,576

3,772

1,843

23,713

Trust fees

430

430

430

430

480

430

2,630

Utilities expenses

544

4,774

882

511

2,564

863

10,141

Insurance expenses

63

214

164

69

58

93

663

Repair expenses

2,998

5,271

2,504

3,064

4,479

1,729

20,047

Taxes and public dues

2,738

10,825

4,721

2,880

-

-

21,165

Other

2,951

4,326

7,753

4,057

2,508

2,737

24,335

NOI

43,595

155,830

49,463

37,46032,54328,009346,902

Depreciation

4,199

12,137

16,442

7,508

4,098

6,525

50,912

Income from real estate
property leasing

39,395

143,693

33,02029,951

28,445

21,483295,989

Capital expenditures

15,595

2,308

-

625

971

11,34130,842

NCF

28,000

153,52149,46336,834

31,572

16,667

316,060
37

Balance of Payments of Individual Properties for the 4th Fiscal Period(Unit: thousand yen)

Total of revenue realestate lease
Lease businessrevenue
Other lease businessrevenue
Total of expenses - realestate lease

LGC-01

LGC-02

LGC-03

LGC-04

LGC-05

Iwatsuki
Logistics

Yokohama
Logistics

Funabashi
Logistics

Baraki
Logistics

Tokorozawa
Logistics

Logistics facility
Total

201,821258,103748,734

187,718

238,099

702,597

14,10320,003

46,13734,50157,050135,682

PM fees

5,650

12,05826,618Trust fees

430

480

2,250

14,103

17,21844,218

Utilities expenses
Insurance expenses
Repair expenses

296
-

429

Not
disclosed

2,715

Not
disclosed

Not
disclosed

1,151
6,015

14,02023,67851,724

-

469

3,705

NOI

167,320

201,052

613,052

Depreciation

46,434

26,491

108,624

Income from real estate
property leasing

120,885

174,561

504,427-6,226

35,023

167,320

194,825

578,028

Taxes and public dues
Other

Capital expenditures
NCF（※）テナントからの開示に関する同意が得られていないため、非開示としています。

38

Balance of Payments of Individual Properties for the 4th Fiscal Period(Unit: thousand yen)
HTL-01

HTL-02

R&B Hotel
Umeda East

Smile Hotel
Namba

Total of revenue real estate lease

64,93553,06784,60080,400283,0022,408,272

Lease business revenue

64,93553,06784,60080,400283,0022,255,617

-

-

-

-

-

152,654

7,305

4,097

2,593

8,633

22,631

536,359

PM fees

742

660

1,200

1,200

3,802

121,151

Trust fees

430

630

500

500

2,060

10,740Utilities expenses

10

-

-

-

10

137,730

Insurance expenses

123

58

137

116

436

3,772

Repair expenses

498

339

731

6,789

8,359

59,548

5,383

2,302

0

0

7,686

139,112

118

106

24

27

276

64,304

NOI

57,62948,96982,006

71,766260,371

1,871,912

Depreciation

9,142

11,9409,640

10,91841,642305,290

Income from real estate property
leasing

48,48737,02872,36560,847

218,729

1,566,622

Capital expenditures

3,514

1,626

3,968

4,218

13,327

182,811

NCF

54,11547,34278,03767,548247,043

1,689,101

Other lease business revenue
Total of expenses - real estate lease

Taxes and public dues
Other

HTL-03

HTL-04

Best WesternBest WesternTokyo
Yokohama
Nishi-kasai

Hotel
Total

合計

39

Organizational Framework of Asset Manager(As of March 20,2018)
President and CEO
Atsushi Kato

Chief Compliance
Officer
Kazuaki Fujii

After entering Nomura Real
Estate Development Co.,
Ltd., he worked for Showa
Ota Ernst & Young, andthen entered Nomura
Securities Co, Ltd. Afterbeing involved in the asset
finance business including
support in establishing JREITs, he joined Star Asia
Investment Management
Co., Ltd.

Investment Management Division
Director and CEO
Satoshi ObaraManager(Male)

Joined Nissho Iwai Corporation (current:
Sojitz Corporation). After working in the condominium
developer sector of the Urban Development Department,
engaged in acquisition and asset management of private
funds at Morgan Stanley Capital K.K. Has been involvedin business deals totaling 218 billion yen. Joined Hulic
Co., Ltd. Engaged in IPO and four POs at Hulic Reit
Management Co., Ltd.

Assistant Real Estate Appraiser
Was in charge of the acquisition of a total of over 100 billion yen inproperties, asset management (AM) and finance tasks at a foreignaffiliated real estate investment company, prior to which he supervised
acquisitions, AM and finance tasks at a REIT operating company.

Manager(Female)Was involved in contracting tasks and accounting tasks at aleading real estate operating company. Currently conducts
property cash management in cooperation with the FinanceManagement Division.

Manager(Male)

Was involved in asset management at an overseas listed fund’s
asset management company, prior to which he was in charge ofacquisitions, including development projects, at a real estate
asset management company.

Manager(Female)Was involved in acquisitions and interim investment
management of various asset types at an overseas listed fund’s
asset management company and a J-REIT operating company.
Currently in charge of asset management.

Star Asia Management Japan Limited（Construction Management department）
Tatsuji Ishii

Worked at Mizuho FG
and its affiliatecompanies. Holds
experience in a broad
range of on-site auditing,including theme audits
on risk management,internal control,
compliance and others.

Finance Management Division
Director and CFO
Toru Sugihara

Manager(Female)Manager(Male)

Manager(Female)Associate(Female)After being involved in the investment banking
business at Nomura Securities Co., Ltd., heworked at Barclays Securities Japan Limited
and Kenedix, Inc. and joined Star Asia
Management Japan, Ltd.

Involved in IR, management planning tasks, etc. in the general
construction industry. Using experience obtained thereafter in startup
work for an overseas base of a different business, is currently in chargeof general financial management tasks while primarily working in IR.
Certified Public Accountant After gaining experience as a member of anaudit team of a REIT at an accounting office, he was involved in tasks ofthe planning department at a leading investment advisory company.
Using his expert knowledge, he also contributes to the formulation ofmanagement strategies.
After gaining experience in conducting duties at a leading bank andforeign-affiliated financial institute, gained experience in PM tasks forover 50 properties in total of REITs, private placement and individualowners at a leading PM company, and using such experience, conducts
property cash management in cooperation with the Investment
Management Division. She also contributes in other administrative tasks.
In charge of a wide range of work as an assistant, using abundant
experience from various duties.

the functions at foreign real estate funds by hiring personnel who were in charge of ➀ implementing capital
expenditure and making repair plans with an aim to enhance value and maintain functions upon acquiring real estateand ② supervising construction work such as renewal and repair work after the acquisition of real estate40

Status of Unitholders at the End of 4th Fiscal Period ended January 2018
Number of Investment Units by Unitholder Type:■List of major unitholders (Top 10)

Total 414,300 units
Securities company 2.4%

Foreign
26.6%

Indivisual
38.2%

institutecompany

19.2%

Ratio

No. ofinvestment
units

Individual

38.2% 158,273

Financial
institution
Domestic
corporation

19.2%

79,64913.5%

56,129Foreign

26.6% 110,303

Securities
company

Financial
Domestic

Category

2.4%■Number of Unitholders by Unitholder Type:
Total 16,544
Domestic

Securities

corporationcompany

1.6%

0.1%

Financial
institutions
0.2%

Category

Individual
97.4%

Individual
Financial
institutions
Domestic
corporation
Foreign
Securities
companyRatio

No. ofpersons/e
ntities

97.4% 16,119
0.2%

26

1.6%

265

0.7%

113

0.1%

21

Number ofinvestment units

Unitholding
ratio

1

Star Asia Capital Japan GK

39,4809.5％

2

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

28,109

6.8％

3

Japan Trustee Services Bank, Ltd(Trust account)

24,2085.8％

4STAR ASIA CAPITAL Ⅰ LLC

14,325

3.5％

4STAR ASIA CAPITAL Ⅱ LLC

14,325

3.5％

4STAR ASIA CAPITAL Ⅲ LLC

14,325

3.5％

4STAR ASIA CAPITAL Ⅳ LLC

14,325

3.5%

8

UBS Securities LLC - HFS
Customer Segregated Account

9,972

2.4%

9

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

7,743

1.9％

10

Trust & Custody Services Bank, Ltd.
(Securities investment trust account)

6,676

1.6%

Total

173,488

41.9％

9,946

13.5%

Foreign 0.7%

Unitholder name

* The ratio of investment units held expressed as a percentage of total number of investment units
issued and outstanding is rounded to the nearest first decimal place.
* Japan CRE Securitization Series 1 GK has changed its name to Star Asia Capital Japan GK.
* Star Asia Capital Japan and Star Asia Capital I-IV LLC are the sponsor group companies.

41

■Disclaimer
This document has been prepared solely for the purpose of providing information, and not for offering,
soliciting or selling any specific product.

We have taken all possible measures to ensure the accuracy of the information provided in this document,
but do not guarantee its correctness or accuracy. Furthermore, please note that such information may bechanged or deleted without any prior notice.
Copying, reprinting or any other use of the contents of this document without prior approval is strictly
prohibited. This document includes charts, graphs, data, etc. publicized by third parties. It also includes
descriptions related to analysis, judgments and other opinions by Star Asia Investment Management Co.,Ltd.

■ Contact regarding this material
Toru Sugihara, Director and CFO (General Manager of Finance Management Department)(Contact person) Akiko Kanno, Finance Management Department
Star Asia Investment Management Co., Ltd.
Atago Green Hills Mori Tower 18F, 2-5-1, Atago, Minato-ku, Tokyo 105-6218
Tel: +81-3-5425-1340

42