"Financial Results for the 13th Fiscal Period Ended July 2022"

Star Asia Investment Corporation

上場から 5 年、 これからの 5 年

スターアジア不動産投資法人（3468）
スターアジア投資顧問株式会社

Contents

Characteristics of Star Asia Investment Corporation (SAR)

1. A diversified REIT

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

2. Steady growthPursuit of internal growth by the Asset Manager with abundant experience andknow-how as well as external growth based on asset managed performed by theStar Asia Group1.

Executive summary2

2.

Actual and forecasted distribution

5

3.

Operating results for the 13th fiscal period
ended July 2022

10

4.

Initiatives on ESG

21

5.

Progression Status of Mid-term plan

27

6.

Offering Summary

33

7.

Appendix41

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

Investment policy

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

Achieving income
stability and growththroughdiversification ofasset type

Investment primarily
in middle-size
assets (＊2)*Unless otherwise stated within this document, references to all monetary amounts have been rounded down to the nearest monetary unit described, and ratios have been rounded to the decimal point described.
* In this document, Star Asia Investment Corporation may be referred to as "SAR"＊ 1 “Tokyo area”: “Tokyo area” refers to Tokyo’s 23 wards and the cities of Kawasaki and Yokohama for office properties and retail facilities, and Tokyo and the three prefectures of Kanagawa, Saitama and Chiba for residential properties, logistics facilities, hotels and student
residences.
＊ 2 “Middle-size assets” are properties with acquisition prices of less than JPY10bn.

1１．Executive Summary2

1. Executive Summary (1)Overview of 13th Fiscal Period (ended July 31, 2022)

Forecasts for 14th / 15th Fiscal Periods

 Distribution per Unit

 Forecasted Distributions Per Unit
Actual Results 1,476 yen (46 yen)

Forecast 1,476 yen (79 yen)

※ Forecast DPU is the distribution amount announced in September 2021,※ The figure in brackets ( ) for DPU is the amount for which internal reserves have been utilized. The internal reserve utilization
amount is calculated based on the following formula:(Forecast) DPU – (forecast) net income for period per unit.
The same applies below.

14th Period JPY 1,476 / unit (79 yen)
 The amounts withdrawn from retained earnings
increased due to finance related expenses(compared to forecast announced in March 2022).

15th Period JPY 1,485 / unit (46 yen)

 NAV per unit The retained earnings withdrawal amount assumes
amortization amount of negative goodwill(minimum 88 million yen).

End of 13th FP 61,129 yen

End of 12th FP 59,749 yen Assumptions for 14th FP and thereafter.

 Topics/ Operational results Portfolio NOI 4,263 million yen (+1.2 % above forecast)•Rent revenue was largely as forecasted (＋0.1%) /Other leasing business related revenues higher thanforecasted.

•

Upside portion of NOI (mainly revenues from restoration-to-original state fees) are expected to beappropriated to (1) decrease amount of withdrawal from retained earnings—utilize to stabilize
distributions per unit, and (2) expenditures for restoration-to-original-state costs for future fiscal
periods.
 NAV
per unit increased by 2.3% (compared to end of 12th FP)• Growth of 2.3% NAV per unit was realized, the increase in amount of appraisal value (compared to the preceding
period) of the existing portfolio.

•

It is assumed that the recovery trend of officeoccupancy rates will continue, and occupancy rates
which have recovered for residences will bemaintained.

•

Variable rents of hotels assumed at “zero”.

•

Distribution per unit is forecasted to increase, as inaddition to the recovery of office occupancy rates,
also due to the increase in the number of days inoperation of the 3 newly acquired properties, anddecrease in finance related expenses in the 15th
fiscal period.

ESG related initiatives / Executed 5th Public Offering ESG related initiatives
 Establishment of green finance framework/ Acquisition of third-party assessments- New borrowings at the time of the 5th public offering were fully procured by green loans.
 Continue to acquire environmental certifications for properties held from the past and newly acquired
properties.
- Environmental certification acquisition rate as of the end of August 2022: 42.7%
 GRESB real estate assessment- Already participated for the 2022 fiscal year.
 Continue to disclose the degree of achievement of environment-related numerical goals in thecompany website.

 Executed 5th Public Offering A public offering of investment units was executed in August 2022, and properties
were newly acquired. (3 properties/ total acquisition price: JPY15.1 billion)
 Total asset size increased to JPY 194.8 billion.
Given expansion of asset size and increase in the number of properties, a highly
diversified portfolio with stable profitability was achieved,
 An expansion of the investor base was observed. ～ Demand from abroad
particularly strong, including some new participation of institutional investors.
 In the mid-term, pursue expansion of asset size while maintaining the LTV level,with the anticipation of the effect of asset size expansion – improved ratings –reduction of interest costs.

31. Executive Summary (2)Change in Key Indicators

No. of properties

Asset size

Ratio of assets in Tokyo area（note1）entire

13FP
End of July 2022

After Acquisitions

60 properties

63 properties

JPY
179.6 bn

JPY
194.8 bn

72.3 ％ / 79.1 ％66.7 ％ / 72.4 ％Ratio of mid-sized assets（note2）

93.8 ％

94.3 ％

Average building age（note3）

25.0 yeas

24.1 years

Portfolio appraisal NOI yield

4.9 ％

4.8 ％

Total interest-bearing debts

89,640 million yen

96,840 million yen

Total asset LTV

46.3 ％

46.6 ％

NAV per unit（note 5）

JPY 61,129

JPY 60,835

portfolio / excluding suburban retail facilities（note4）4

２．Actual and forecasted distribution5

2. Actual Distributions and Business Forecast (1)Actual distributions for FP ended July 31, 2022

 In the 13th fiscal period, portfolio NOI exceeding initial forecast was recorded, and the amount of utilization of retained earnings was
reduced compared to initial forecast (▲33 yen per unit) For the 14th fiscal period, an increase (compared to the last estimate) in the withdrawal amount from retained earnings is anticipated to coverfinancing costs, and for the 15th fiscal period it is expected that distributions will return to cruising status for asset types other than hotels.

13th FP(ended Jul 2022)-Actual-14th FP(ending Jan 2023)-Forecast-

1,476 yen

± 0 yen (0%) v.s. forecast(JPY）

Utilization of Internal
Reserve: 46 yen
1,600

1,500

1,485 yen

Utilization of Internal
Reserve: 79 yen

Utilization of Internal
Reserve: 46 yen

30

3

2

<P/L from Leasing
Business>
・Increase inrestoration income
etc.

1,300

1,430

1,397

26

<P/L from
Leasing
Business>
Reductionintemporaryrevenues.

<Nonoperating
Expenses>
・Increase infinancecosts etc.

Rent
revenues/expenses

Non-operating
Expenses

5

79<Other PL>

1,397

1,100

1,000

DPU/13FP Forecast

Rent
revenues/expenses

OthersDPU/13FP result

 Minimum DPU amount will be set, byutilizing internal reserves.

1,485

Maintainyen

from 15th FP and thereafter

1,485

1,476

46

<Other PL>≪Policy for Maintaining Distributions≫

1口当たり当期純利益
EPU

1,476

1,476

1,400

1,200

1,476 yenutilizing Internal reserves per unit
1口当たり内部留保取崩額

79

15th FP(ending Jul 2023)-Forecast-OthersDPU/14FP Forecast

17<P/L from
Leasing
Business>
・Increase inoccupancy
days ofnewly
acquiredproperties/Increase inoccupancy
rate ofproperties
owned
Rent
revenues/expenses

21<Nonoperating
Expenses>・Decrease infinance costs

4

46<Other PL>

1,439

Non-operating
Expenses

OthersDPU/15FP Forecast

62. Actual Distributions and Business Forecast (2)Operational Results (Summary) for FP ended July 31, 2022 andForecast Assumptions for FP ended January 31, 2023 and FP ending July 31, 2023

 By making agile adjustments to lease conditions by responding to changes in the market environment, office occupancy rates will move to an increasing trend, andresidence occupancy rates will stabilize.
 Upside in hotel variable rent revenues due to recovery in accommodation demand / variable rents have been assumed to be “zero” for the purpose of business forecast.

Actual Result of FP ended Jul 2022

Forecast Assumptions for FP ended Jan 2023 andFP Jul 2023

• Rise in occupancy rates which was assumed at the beginning of the periodtransitioned more or less as expected. (January 31, 2022: 92.8％ ⇒ July 31, 2022:
93.7％; period average: 94.0%)• Given that the activities of potential tenants are intensifying, although the degree
differs depending on the property, new tenants are consistently being found.
• Newly contracted 12 tenants: average amount increase of 0.5％ (compared to rentsof former tenants）

 The activities of potential tenants are intensifying, and it is assumed thatthe rising trend of occupancy rates will be maintained by agile
adjustments to rent conditions etc.
 We have sensed that free-rent periods will not be prolonged.
 A gradual increase in occupancy rates are anticipated from the 14th to15th fiscal periods. / Increase in rents amounts per-unit is not anticipated.

Retail• 3 tenants newly entered (1,373.68㎡) / 4 tenants moved out (1,949.25㎡), no
surprises.
• No new requests for reduction or exemption of rents• Expense reduction (land lease fees) implemented from April 2022 (annual reduction
effect of 4,255 thousand yen).
• No rents in arrears for the 13th fiscal period, and rent revenues transitioned stably.

 No tenants to move out during the 14th fiscal period; 1 tenant expected
to move out during the 15th fiscal period.
Expected floor area to be cancelled: 585.52㎡ / 0.6% of the entire retailfacility.
 Re-contracted or scheduled to be re-contracted during the 14th fiscal
period. (Rent increase 1, no change 1, rent reduction 2)
 The above 2 points have been reflected in the financial forecast
Reconsidering tenant mix -- currently negotiating to attract asupermarket.

Residence• Due to tight supply and demand and adjustments and negotiations of rent reflecting
such condition, achieved rent increases at the time signing new contracts andcontract renewals for family-type residences.(Increase amount: 877,200 yen permonth)• Given agile adjustments to rent conditions, occupancy rates for single-type
residences recovered.(January 31, 2022: 81.0％ ⇒ July 31, 2022: 96.0％)

 Assumed to maintain the average occupancy rates during 13th fiscal
period of approximately 97.3%.
 Assumed that rents will be maintained at the same level.

Logistics• Revenues have transitioned stably.
• Of the 3 tenants for which the contract term has matured during the 13th fiscal period,for 1 tenant a new fixed-term lease agreement has commenced with increased rent,
and for the remaining 2 tenants lease contracts have been renewed on the same
conditions as the last contract.

 Revenues anticipated to remain stable.
 For the 3 tenants whose contract periods will end during the 15th fiscal
period, it is assumed that current status will be maintained.
 Also, for tenants whose contract periods will end in or after the 16th
fiscal period, prepare for proactive negotiation.

Hotel• Fixed rents have been received as agreed under contract (from 7 hotels excluding“KOKO HOTEL Osaka Namba” for which only variable rents are received)
Given recovery of accommodation demand and efforts to lower the break-even point,
variable rent (linked to GOP) has been received from the tenant of “KOKO HOTEL
Osaka Namba”.

 Received request from 1 tenant for reduction of rent: under negotiation
Variable rent assumed to be “zero” for financial forecast / For hotels
 other than those stated above, it is assumed that only fixed rents will bereceived as agreed under contract.

Office7

2. Actual and forecasted distribution (3)Factors for increase/decrease compared with forecast/actual results for the 13FP
 Rent revenues were more or less at the same level as per initial forecast, and NOI amount increased mainly due to increase in revenues
from restoration-to-original-state fees (versus forecast).
 Promptly responded to the increase in electricity charge payments(Unit: million yen)

Lease business revenue
Office rent
Retail rent
Residence rent
Logistics rent
Hotel rent
Other
Expenses related to rent business(Depreciation is excluded)
NOI
Depreciation
Rent revenues/expenses
Mezzanine
TK distribution
SGA
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Income before income taxes
taxes
Net income
Cash distribution per unit
FFO per unit
Balance of internal reserves(Reference) Net income per unit
(Yen per unit)

13 FP (ended Jul.
2022) forecast*

5,899
1,971
849
1,210
910
424
532

13FP (ended Jul.
2022) Actual

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

Comparison with
forecast

161
2
△2
4
0
2
154

2.7% ＜Other＞
0.1% Original state restoration fee revenue +69.2million yen
Utility revenue+55.2 million yen△0.2%
Deposit amortization+16.4million yen
0.4% Key money revenue +4.3million yen
0.0% Penalty charge revenue +3.4million yen
0.5% Renewal fee revenue +3.4million yen
29.0%

1,688

1,796

108

4,211
699
3,511
24
543
2,992
491
2,500
2,500
0
2,499
1,476 yen
1,787 yen
8,826

4,263
697
3,565
28
546
3,047
2
489
2,560
2,560
0
2,559
1,476 yen
1,820 yen
8,886

52
△1

59
59
59
0 yen
33 yen
59

2.4%
2.4%
0.0%
2.4%
0.0%
1.8%
0.7%

1,397 yen

1,430 yen

33 yen

2.4%

53
4
2
55
2
△2

（*）Announced in 12th FP closing of accounting report (March 16, 2022)

Factors for the increase/decrease

6.4%<Expenses of leasing business>
1.2% Utility costs 71.5 million yen△0.2% Repair costs +30.5 million yen
1.5% Leasing costs +6.7 million yen
17.5%
0.5%
1.9%
△0.5%

 Promptly responded to the increase in electricity charge
payments•

Made a request to all of the tenants of 17 officeproperties and 1 logistics properties to change themethod of invoicing electricity charges so that it is linked
to the actual electricity charges paid.

•

All of the tenants have accepted.

8

2. Actual and forecasted distribution (4)Forecast of business results for the 14FP ending January 2023 / the 15FP ending July 2023
 Tree new properties acquired through the public offering executed in August 2022. The newly acquired properties expected to fully contributeto the FP ending July 2023.
 A gradual increase in occupancy rates is anticipated for office up to the end of the 15th fiscal period.
(Unit: million yen)

Lease business revenue
Office rent
Retail rent
Residence rent
Logistics rent
Hotel rent
Other

Expenses related to rent business(Depreciation is excluded)
NOI
Depreciation
Rent revenues/expenses
Mezzanine
TK distribution
SGA
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Income before income taxes
Taxes
Net income
Cash distribution per unit

FFO per unit
Balance of internal reserves(Reference) Net income perunit (Yen per unit)

13 FP (ended
Jul. 2022)
Actual
(Ａ)

6,060
1,974
847
1,215
910
426
686
1,796
4,263
697
3,565
28
546
3,047
2

489
2,560
2,560
0
2,559
1,476 yen
1,820 yen
8,886
1,430 yen

Forecast forthe 14 FP
ending Jan
2023 (B)

Increase/decrease(B-A)

Major factors for theincrease/decrease

Forecast for the
Increase/decrease
15P ending Jul(C-B)
2023(C)

Major factors for theincrease/decrease

6,363
2,056
1,035
1,216
914
503
637

303
82
188
1
3
76
△48

5.0% <Office>Acquired Urban Center Fujisawa
4.2% +65.1mil
22.3% <Retail>Acquired abeno nini(Retail)0.1% +198.7mil
0.4% <Hotel>
Acquired abeno nini(Hotel) +80.7mil
18.0% <Other>△7.1% (3 New Properties) +7.2mil

6,499
2,137
1,043
1,224
916
501
676

136
2.1%
<Office>80
3.9% Increase in number of days of8
0.8% operation at Urban Center Fujisawa
Refilling of vacant compartments of
8
0.7% existing properties assumed.
1
0.2%<△1 △0.3% Retail>
Increase in number of days of
38
6.0% operation at abeno nini (Retail)

1,804

7

0.4% Decrease in revenues for restoration-

1,892

87

4,607
749
3,857
23
579
3,302

48
1.1% Refilling of office compartments
assumed.
15
2.0%
33
0.9% <Other>
Utility expenses
0 △1.6% +40.1million yen<Expenses related to rent
△6 △1.0%
business>
38
1.2% Utility expenses(Existing properties)

to-original-state △69.1mil
4,559
296
6.9% Increase in utility charge revenues734
37
5.3% +45.8mil
Decrease in amortization of deposits
3,824
258
7.3% △16.4mil△4 △15.2% Decrease in renewal fees △8.8mil
24
Decrease in key money- revenues△3.9mil
585
38
7.1% Decrease in cancellation
penalties△3.4mil
3,263
215
7.1% <Expenses related to rent business>△100.0 (3 New Properties) +50.9mil△2% (Existing properties)
Repair expenses △49.7mil
576
86
17.7% Utility expenses +37.6mil
2,686
126
4.9% Leasing expenses △20.5mil
Building management fee△12.1mil
2,686
126
4.9% <Depreciation、SGA>
0
0.0% Increase with the expansion ofasset size
2,686
126
4.9% <Non-operating expenses >1,476 yen
0 yen
0.0% Increase given the increase ininterest-bearing debt balance.
△2.2%
1,780 yen △40 yen
Occurrence of finance costs

△150

△1.7%

1,397 yen △33 yen

△2.3%

8,735

-

-

4.9% <Residence>＋71.4 million yen- Taxes and dues +32.2million yen
Leasing expenses△41 △7.1% △36.6million
535
yen
2,766
79
3.0% Building management fee +9.9
2,766
79
3.0% million yen
Repair expenses ＋9.7 million
00.0% yen
2,766
79
3.0% <Non-operating expenses>
decrease in expenses due to1,485 yen 9 yen
0.6%
refinancing
1,829 yen 49 yen
2.8%
8,648

△87 △1.0%

1,439 yen 42 yen

3.0%

9

３．Operating results for the 13th fiscal
period ended July 2022

10

３．Operating results for the 13th fiscal period ended July 2022 (1)- Occupancy rate status - During the 13th fiscal period, the portfolio as a whole maintained occupancy rates exceeding 97% (on a contract floor area basis).
 Office occupancy rates have shown a rising trend, and residence occupancy rates are in stable condition.
100.0%

Hotel, 100.0%

99.0%

Retail, 98.6%

98.0%

Logistics, 97.8%
Residence, 97.5%

97.0%

Total, 97.2%

96.0%
95.0%
94.0%

Office, 93.7%

93.0%
92.0%
91.0%
90.0%

OfficeRetailResidence

Logistics

Hotel

Total

13FP

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
JUl
Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun
Jul2020 2020 2020 2020 2020 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 2022 2022

10FP
(Jan 2021)

11FP(Jul 2021)

12FP(Jan 2022)

13FP
Feb 2022

Mar 2022

Apr 2022

May 2022

Jun 2022

Jul 2022

Office

95.8%

93.1%

92.8%

93.4%

94.06%

94.8%

93.0%

94.8%

93.7%

Retail

98.8%

98.8%

99.4%

99.4%

99.4%

99.5%

99.8%

99.7%

98.6%

Residence

95.7%

94.4%

95.1%

96.9%

97.4%

97.1%

97.4%

97.4%

97.5%

Logistics

97.8%

97.8%

97.8%

97.8%

97.8%

97.8%

97.8%

97.8%

97.8%

Hotel

91.3%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Total

96.9%

96.6%

96.7%

97.2%

97.4%

97.6%

97.4%

97.7%

97.2% 11

3. Operating results for the 13th fiscal period ended July 2022 (2)- Office - Status of change in tenant as of the end of the 13FP
Operating result for office

Status of change in tenant as of the end of the 13FP
Number oftenants＜Actual Result of 13FP＞

 Entry and exit of tenants: New contract area (4,973.60㎡) ＞ exited area (4,261.63㎡)

Area(㎡)

12

4,973.60

Rent up

6

3,014.03 increase and decrease of rents.

Same rent

1

Rent down

5

1,232.59 rent levels, except for 1 tenant.

＜Renewal＞

40

18,725.25

Rent up(※)

6<Forecast for 14th fiscal period and onwards>

8,385.00 which have been unchanged.

Same rent34

10,340.25

 The activities of potential tenants are intensifying, and we have good responses in leasing
activities.
- A gradual rise in occupancy rates is expected from the 14th to 15th fiscal periods.

Rent down0 Attracted new tenants: 12 tenants (An average rent increase of 0.5% compared to before)
All rents are above market except one tenant.
 Achieved rent increases at the timing of renewal for 6 tenants, at monthly amount plus
2,710 thousand yen.
When including cases where rents were not changed, the average amount of rents
increased by 4.2%.
 No cases of rent reductions upon contract renewals.
 Achieved increase in rents during lease periods, other than at timing of contract renewals.
For 2 tenants, average increase amount of 10.3%.

＜New Contract＞※

Contracted occupancy rate / effective occupancy rate
96.0%

Effective occupancy rate

93.7%

89.0%

No tenants have reduced rents upon

4,261.63

Contract Rent Period of Office Portfolio
Area of Move in

Area of Move out※（ ） Number of tenants

2,000 ㎡
0,000 ㎡

92.0%

90.0%

.

0.00 contract renewal.

4,000 ㎡

93.0%

91.0%

Average increase of 4.2% including rents

6,000 ㎡

95.0%
94.0%

Rents of new tenants are all above market

108,000 ㎡

Contract occupancy rate

726.98

Includes increased amounts in the middle of the contract period＜Leaving＞

97.0%

Average 0.5% increase, including both

91.3%

-2,000 ㎡

(7)

(19)

(7)

(8)

(14)

(9)

(12)

(10)

(13)

(7)

(13)

(13)

(7)

(10)

7FP

8FP

9FP

10FP

11FP

12FP

13FP

-4,000 ㎡-6,000 ㎡-8,000 ㎡

12

３．Operating results for the 13th fiscal period ended July 2022 (3)- Office Rent in the 13FP (＊)＜Rent per Tsubo＞＜Diversification status of rent gap＞

10% or more,
31.6%

0% to lass than
10%, 26.1%

Less than 0%,
42.3%

Transition of unit rent
Average unit rent（yen/tb）

14,600Rent gap was calculated
for 21 properties including
the newly acquired Urban
Center (based on floor
space).

14,567

14,50014,40014,300¥13,964 /tb¥13,974 /tb

14,21914,20014,100Rent gap exists at
57.7％ （based onfloor area) of the total

14,04014,000＋1.08％

13,900Contracted
Rent
契約賃料単価
Unit Price

Nearby Market
周辺相場賃料単価
Rent Unit Price(＊ ) The rent gap is the gap between market rent and contract rent with each tenant. The market rent has taken the intermediate
value of the expected new contract rents (described as a range) for each property appraised by CBRE as of the end of theperiod. With respect to Amusement Media Gakuin Honkan/Shinkan, the net rentable area is used for the calculation.

＋0.53％

13,80013,70013,60013,791

13,86414,014

11FP

12FP

13FP

Contract Rent Period of Office Portfolio
30,000 ㎡

Rent gap less than0%

25,000 ㎡
20,000 ㎡
15,000 ㎡

Addressing leasing issues

Rent gap 0% to less than 10% Rent gap 10% or more
74

69
55
58
11

5,000 ㎡

14FP

15FP

16FP

【Urban Center Tachikawa （Tachikawa city, Tokyo）】• 2 of the 4 floors vacated have been refilled

Acquisition price

1,804 mil

Structure

RC S 6F/1B

Leasable area

3,400.47㎡

Aug 2021

May 2022

Jun 2022

Construction
completion

May 1990

83.0 ％

33.9 ％

65.1 ％• 2 remaining sections are being previewed.

【 Nihonbashi Hamacho Park Building （Chuo-ku, Tokyo）】

10,000 ㎡

0,000 ㎡

Market Rent（yen/tb）

 Based on the same 20 properties (officespace) for both periods.
 Calculated the average unit contract rent
and average market rent as of the endof each period.

17FP

18FP or after

Structure

SRC 11F• Failed to make up the space vacated at the end of
the 12th fiscal period in the 13th fiscal period• Current rent is higher than market rent, but leasing isunderway with a focus on rent.

Leasable area

1,913.44㎡

2021年12月

Jan 2022

Jul 2022

Construction
completion

Jul 1992

100.0 ％

74.9 ％

74.9 ％

Acquisition price

1,450 mil13

3. Operating results for the 13th fiscal period ended July 2022 (４)- Retail -Management strategies of retail

Suroy Mall Chikushino (Case Studies)<13th fiscal period: actual performance>

Acquisition price Rent revenues have transitioned stably and have been secured more or less as initially assumed.
 “Lapark Kishiwada”
Relocation of existing tenants within the building – Attracted tenants with ability to attract customers(started operations during the 13th fiscal period)
With the cooperation of sub-sponsor Nippon Kanzai Group, implemented cost reductions.
 “Suroy Mall Chikushino”

Leasable area(see to the right)

 “Seiyu Minakuchi-ten”
Given that it is a single tenant, community-based industry, nothing to note in particular.
 “Bagus Ikebukuro Nishiguchi”
The business of some tenants have recovered sales to pre-Covid 19 levels depending on the industry.

••＜Concept for 14th fiscal period and onward＞
 Policy to sell suburban-type retail facilities to be maintained / Will aim to maximize profits so long as they are
held.
Consider methods to improve revenues from “zero basis”.
 Prepare for rent increase at the newly acquired “Abeno nini (retail facility)”.

6,550 mil.

Structure

•
•

S 2F
31,088.53㎡

Number of
Tenants

20

Construction
completion

Jun 2007

Tenants moved out from 3 compartments during the 13th fiscal
year (1,048.58㎡)
Considering reexamination of tenant mix as a measure to
improve profits. With the view to expand the building,considering attracting a supermarket which handles foodstuff
as an anchor tenant which can effectively attract daily
customers.
Achieved reduction of the land lease fee for the parking lot(leased land) (Annual cost reduction of over 4.2 million yen).
Status of handling the 4 tenants whose lease period expires
during the 14th fiscal period.
(Rent increase 1, no change 1, rent reduction 2)

Asset management which contributes to the revitalization of the local community
Making efforts to revitalize the local community, by cooperating with other business operators within the region and the municipal government,
and facilitating communication with the neighboring society.
■La Park Kishiwada
Conducted events contributing to the regional community organized by themunicipal government office and by public interest foundations which aim tocreate a sustainable and peaceful global community.

■Suroy Mall Chikushino
Conducted communication events and healthpromotion events with the neighboring community.
「 May 5, Children's Day: Let's Play Together at
Shuroa Mall Chikushino 」「 Suroy Mall Chikushino Walking Contest 」

Peace Pal International Art Contest

Kishiwada Environmental Fair
2022

14

3. Operating results for the 13th fiscal period ended July 2022 (5)- Residence - Promptly responding to market conditions, occupancy rates for single-type residences has increased due to agile adjustments of leasing
conditions, moving towards the state of stable operations.
 For family-type residences (exclusive floor area of 30㎡ or more), achieved rent increases for new entrants and at the time of contract renewals.

Operating results for residence

Transition of occupancy rates
State of Emergency 1＜13FP Actual＞
 Entering and leaving of tenants ：Area move in（9,467.98㎡）＞Aria move out（7,033.18㎡）

100.0%

 Entering and leaving, Rent Fee：Total rent（monthly amount） ＋317,850 yen

95.0%

Less than 30㎡

30㎡ or more

Number oftenants

Total monthly
amountNumber oftenants

New contract

89△558,850 yen

120＋611,700 yen

Renewal

45

0 yen

257

＋265,500 yen

Cancellation

49

83

－

※

－

90.0%

Total monthly
amount85.0%

FamilySingle
Total

80.0%
75.0%

8FP

9FP

10FP

11FP

12FP

13FP

For newly entering tenants, only those housing units for which the former tenant’ rent is known arecompared, and the difference is aggregated.

Transition of total monthly rent

Transition of new contracts and cancellations of single-type residences
1,800.00

Cancellation area

New contract number of tenants

Cancellation number of tenants

Cancellation number of tennants

100（thousand yen）  Given the rise in occupancy rates, the198,00090

196,000

80

194,000

70

192,000

60

190,000

50

188,000

40

186,00030

400.00184,000

20

182,000

200.0010

180,0000

178,000

1,600.00

 In the 13th fiscal period, significant
recovery in terms of both the number of
new tenants and rented floor space..

1,400.00
1,200.00
1,000.00
800.00600.00

0.00

97.6%
97.5%
96.0%

7FP

8FP

9FP

10FP

11FP

※singles-type housing : UP Namba, UP Gokokuji, UP Koenji

12FP

13FP

total amount of monthly rents also
increased, and is currently transitioning
stably.

Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul
2021 2021 2021 2021 2021 2022 2022 2022 2022 2022 2022 2022

15

3. Operating results for the 13th fiscal period ended July 2022 (6)- Logistics - During the 12th and 13th fiscal periods, rent increases were achieved for 1 tenant for each period at the timing of maturity of the respective
fixed-term building lease agreements.
 Going forward, continue to pursue the possibility of rent increases, while considering redevelopments and building expansion aiming towards
improvement of profitability.

Revision of Rent and Contract Period

Operating results for Logistics<12th fiscal period: actual performance＞
 For 1 tenant, resigned fixed-term building lease agreement with increased rent
amount.
 For 1 tenant, lease agreement was renewed under the same conditions as before.

(㎡）
70,000<13 fiscal period: actual performance＞
 For 1 tenant, a new fixed-term building lease agreement has commenced withincreased rent amount.

50,000 For the other 2 tenants, renewed contract under the same conditions as before.

<Initiatives to be taken from 14th fiscal period and onward＞
 Pursue possibility to increase rent amount at the timing of re-signing or renewal ofcontracts.
 In order to improve profitability, implement building extensions of Funabashi Hi-Tech
Park Factory I.

Average period of lease contracts※（）Number of tenants（5）

80,00060,000thDistribution of contract expiration dates (based on area)

2.9 ％40,000

upwardrevision（3）

30,00020,0004.2 ％upwardrevision

（3）

（2）

（2）

（2）

10,000
0

12期実績
13期実績
14期
12FP
13FP
14FP

15期
15FP

16期
16FP

17期
17FP

18期
18FP

19期以降
19FP
or after

Average remaining period of lease contracts

Short-term (less than 1 year),

4.2%

Average lease
contract term(based on area)

Long-term (more than 5
years), 3.0%

Medium-term (1year to less than 5
years), 14.0%

Averageremaining leaseterm (based onfloor area)

6.1 years
Long-term (more than
5 years), 81.8%

Short-term (less than
1 year), 25.8%

2.5 years
Medium-term (1 year
to less than 5 years),
71.1%

16

3. Operating results for the 13th fiscal period ended July 2022 (7)- Hotels - In the 13th fiscal period, variable rent was received from “KOKO HOTEL Osaka Namba” / For the purpose of financial forecasts for the 14thand 15th fiscal periods, variable rents have been set at “zero”.
 At the newly acquired “Abeno nini (hotel)”, commenced discussions towards changing the operator.

Hotel portfolio (9 properties)
Acquisition
Date

Fixed

Floating

R&B Hotel Umeda East

2016.4○－

Smile Hotel Namba

2016.4○○

 1 hotel is currently closed due to the influence of COVID-19 --- timing of reopening not decided
Received GOP linked rent from “KOKO HOTEL Osaka Namba” for the calculation period from May to
July. 2,180 thousand yen.

REMBRANDT STYLE Tokyo Nishikasa

2017.3○○

BEST WESTERN Yokohama

2017.3○○<Assumptions for 14th fiscal period and onward>

The BREAKFAST HOTEL FUKUOKA TENJIN

2018.8○○

 Assuming that fixed rents will be received on schedule as per agreement.

GLANSIT AKIHABARA2018.8○－

 Although a certain level of recovery of accommodation demand has been confirmed, it has been
assumed that variable rents will not be received.

REMBRANDT STYLE Tokyo Nishikasai
Grande2018.8○〇

 Variable rents have been incorporated in the rental scheme for 6 hotels, for which upside isanticipated.

KOKO HOTEL Osaka Namba

2018.8－○abeno nini (Hotel)

2022.8〇－Name of Property<Status of 13th fiscal period/ 8 properties>th In the 13 fiscal period, fixed rents were received on schedule as per agreement (no uncollected orlate payments).
 Rent reduction request received from 1 tenant – under negotiation.

Transition of Floating(million yen）

 Variable rent revenue from
KOKO HOTEL Osaka Namba:
2,180 thousand yen.

60
50
40
30
20
10
1FP

2FP

3FP

4FP

5FP

6FP 7FP

8FP

9FP 10FP 11FP 12FP 13FP

Operating results for KOKO HOTEL Osaka Numba
(yen）

4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0

 Total GOP was positive for the 3 months from May to July –Variable rent accrued.
ADR

Rev-PAR

Occupancyrate
稼働率100.0%
80.0%
60.0%
40.0%
20.0%
0.0%

Dec 2021 Jan 2022 Feb 2022 Mar 2022 Apr 2022 May 2022 Jun 2022 Jul 2022

17

3. Operating results for the 13th fiscal period ended July 2022 (8)- Financial standing 1 - Through new borrowings and refinancings, average term of borrowings has become longer, and the ratio of fixed interest borrowings has
increased.
 In the new debt financing in connection with the public offering in August 2022, new lenders were invited and the bank formation was expanded.

Main financial indicators (※1）

Bank formation (as of Aug31, 2022）

12FP
Jan 2022

13FP
Jul 2022

As of Aug 31, 2022

LTV

46.4 %

46.3 %

46.6%（after 5th PO）

Interest-- bearing debt
balance

89,640 million yen

89,640 million yen

96,840 million yen

Long-term debt ratio

100.0 %

100.0 %

100.0 %

Average remaining period
to maturity

3.0 years

3.0 years

3.3 years

Average borrowing period

5.0 years

5.1 years

5.1 years

Average interest rate (※2)

0.76 %

0.77 %

0.78 %

Fixed interest rate ratio

89.5 %

88.4 %

95.1%

Lender

Ratio

1.5%

Mizuho Bank

The Nishi-Nippon City
19.3%
Bank

1.5%

Shinsei Bank

14.4% The Chiba Bank, Ltd

1.0%

Sumitomo Mitsui TrustBank

11.3% Corporation Bonds

1.0%

Aozora Bank

9.9%

Resona Bank

6.0% San-ju San Bank

Mizuho Trust &Banking

The Bank of Fukuoka
The Bank of
Yokohama,Ltd.

14,000

Fixed

Floating

Corporation Bonds

Interest rate

0.90%

10,000

0.80%

1,000

The Dai-ichi Life
Insurance
Fukoku Mutual Life
1.7%
Insurance Company

1,000

6,000
4,000
2,000

11,850
9,790

8,500
4,840

7,300
3,785

11,215
9,060

8,750

9,700
7,050
3,000

Long-term Issuer RatingA (Stable)

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

Issuer Rating
A－ (Stable)

15FP 16FP 17FP 18FP 19FP 20FP 21FP 22FP 23FP 24FP 25FP 26FP

Transition of LTV

0.50%

49.0%

0.40%

48.0%

0.30%

47.0%

0.10%
0.00%

0.5%

Japan Credit Rating Agency, Ltd. (“JCR”)

0.60%

0.20%

0.5%

1.5%

0.70%

8,000

96,840

million yen

0.5%

Credit Ratings

1.00%

12,000Interest-- bearing
debt balance

0.8%

2.1%

Diversification of repayment dates(as of Aug 31, 2022)(mil.）

Ratio

26.2% The Kiyo Bank, Ltd

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

LenderSumitomo Mitsui
Banking

46.3%

46.0%
45.0%
44.0%
43.0%

1FP

2FP

3FP

4FP

5FP

6FP

7FP

8FP

9FP

10FP 11FP 12FP 13FP

18

3. Operating results for the 13th fiscal period ended July 2022 (8)- Financial standing 2 - In the 13th FP, Establishd a "Green Finance Framework" and obtained the highest rating of "GREEN 1 (F)" from JCR.
 New borrowing (7.2 billion yen) in connection with the public offering in August 2022 was entirely financed by green loans.

Established a green finance framework and have obtained a third-party evaluation
JCR Green Finance Framework
Evaluation

Properties which have obtained or renewed certification from one of the following third-party
certifying organizations, or otherwise intends to obtain or renew such certification in the future.

Eligibility Criteria-1

The highest rank
GREEN 1（F) For continue to pursue maximization ofunitholders’ interest and further
promote ESG related measures, andaim to further expand the investor baseas well as secure stable methods toprocure funds, We have established agreen finance framework.

1

DBJ Green Building certification★★★ ~ ★★★★★

2

BELS assessment★★★ ~ ★★★★★

3

CASBEE certification

A rank, or S rank.

Eligibility Criteria-2

Facilities and equipment etc. renovation works which satisfy one of the following criteria.

1Renovation works which aim to improve one of the assessments or certifications under Eligibility Criteria-1 by at least one star or one rank

2

Facilities and equipment renovation works to be conducted for managed real estate for the purpose of making beneficial improvements from anenvironmental perspective, such as energy efficiency, water consumption capacity etc. (such works where usage volume reduction effects of 30%
or higher are anticipated compared to before).

3

Installation of or acquisition of equipment related to renewable energy.

First borrowing by green loan

Abeno nini （Retail）
CASBEE A rank
Location

Osaka City, Osaka

Acquisition
price9,500 million yen

Construction
completion

Jan 2012

 Obtained Rank A under CASBEE realestate assessment certification for Abeno
nini (retail facility) at the same time assigning the sale and purchase agreement.
 Borrowings were executed under the newly
established Green Finance Framework.
 As part of the acquisition proceeds for
Abeno nini (retail facility), the full amountof 7,200 million yen was procured by
Green Loan.
 As a part of ESG related initiatives,issuance of green bonds and making
borrowings of green loans will continue tobe considered going forward based on theGreen Finance Framework.

A syndicate of lenders with Sumitomo Mitsui Banking
Corporation and Mizuho Bank, Ltd. as arrangers
Lenders

Sumitomo Mitsui Banking Corporation, Mizuho Bank, Ltd.,
Shinsei Bank, Limited., Sumitomo Mitsui Trust Bank, Limited.,
Aozora Bank, Ltd., Resona Bank, Limited., and The Chiba
Bank, Ltd.

Borrowingamounts

7,200 million yen

use of funds

a part of the acquisition funds and related expenses
for abeno nini(Retail)Interest Rates

JPY 3M TIBOR + 0.60%（Given the establishment of the Interest Rate Swaps,
the interest rate for the relevant borrowing effectively
fixed at 0.87215 %）Date of
Borrowing

August 18, 2022

Repayment
Date

August 31, 2027

19

3. Operating results for the 13th fiscal period ended July 2022 (8)- Capex Control – Led by the Sustainability Promotion Division, appropriate control of Capex/ secure free cashflow in cooperation with the Finance Division.
 Reduce costs by reducing energy consumption, by reducing economic burden and also by introducing highly efficient equipment.
- Contribute to internal growth.
•

Capex Management(Unit: thousand yen)•Centrally manage budget planning and progress on
Capex centered on the Sustainability Promotion
Division
Consider moving the plan forward depending on thebudget exhaustion status and budget reduction status.

800,000•■Capital Expenditures during the 13th fiscal period
Takadanobaba AccessOutdoor air-handling units and air conditioning
renewal works

Higashi-Kobe Center Building

Entry/exit control system renewal works

36
million yen
27
million yen■Schedule of Capital Expenditures for the 14th fiscal period

Higashi-Kobe Center Building40
million yen

Minami-Azabu Shibuya Building37
million yen

Mechanical parking facility renovation works
Elevators renewal works

Capex Forecast

Capex Actual

Depreciation cost
Depreciation
cost (Forecast)
減価償却費（予想）

700,000
600,000
500,000
400,000
300,000
200,000
100,000
0

10FP

11FP

12FP

13FP

14FP

15FP
(Unit: thousand yen)

10FP
Jan 2021
Actual11FP
Jul 2021
Actual12FP
Jan 2022
Actual13FP
Jul 2022
Actual14FP
Jan 2023
Forecast

15FP
Jul 2023
Forecast

Depreciation cost

628,354

633,013682,245

697,599734,778

749,729

Capex Forecast

552,841

453,448507,750

520,543

628,409

678,057

Capex Actual

331,901

363,439424,722471,534－－

Capex Budget reduction rate

40.0%

19.8%

16.4%

9.4%

－

－

Capex ratio （Capex Actual／Depreciation
cost）

52.8%

57.4%

62.3%

67.6％

－

－

181,949

220,204

181,998

255,201

209,016

218,727

53

53

60

60

63

63

Repair cost（Actual／Forecast）
Number of Properties

20

４．Initiatives on ESG

21

4. Initiatives on ESG (1)Recent Topics regarding ESG Initiatives and ESG Promotion System

 As a part of ESG related initiatives, participated in the 2021 GRESB Real Estate Assessment (Note 1), and acquired 3-Star / Green Star In order to further enhance ESG related initiatives, strengthen cooperation with the sub-sponsors (Nippon Kanzai and Tokyo Capital Management)

Recent Topics regarding ESG Initiatives◆Establishment of Green Finance Framework and acquisition of Green1 (F) On June 30, 2022, SAR obtained Green1 (F), thehighest rank of JCR’s Green Finance Framework
evaluation (Note 2)
 SAR borrowed money through its first green loan toacquire “abeno nini (retail)”, a specific asset (green
qualifying asset) satisfying eligibility criteria (Note 3)
based on Green Finance Framework◆Acquisition of the highest rank in
CASBEE Real Estate Certification
 SAR acquired rank S (the highest
rank) in CASBEE Real Estate
Certification for “Higashi-KobeCenter Building” for the first timein SAR’s history
 SAR switched to LED lightbulbs topromote energy conservation,
receiving rank S in June 2022
four years after it acquired theproperty◆ GRESB Real Estate Assessment
 In 2021, SAR participated in
GRESB Real Estate
Assessment for the first time,receiving “3 Star”
 SAR also earned a “GreenStar” designation by achieving
high performance in both the“Management Component” and“Performance Component”

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

Nippon Kanzai(Sub sponsor)
Supports SAR to achieve numerical targets(provides advice related to developing various
data and measures to reduce environmental
burdens)<E (Environment) related support>■New Business & Corporate Branding
Dept.
• Institution with certification for CASBEE• Environment-related consulting services■East Japan Engineering Management
Center■West Japan Engineering Management
Center• Energy-related services• Environmental assessment services

Tokyo Capital Management (Sub sponsor)
After the Merger, Tokyo Capital Management (TCM) provides one-stop service forasset management + property management. TCM helps developing long-term
repair plans for SAR’s portfolio assets together with Nippon Kanzai

Aim to achieve E (Environment) related goals
22

4. Initiatives on ESG (2)(Environment) related Numerical Goals and their Achievement Status As the occupancy rates of hotels recovered, both GHG emissions and energy consumption slightly increased compared to fiscal 2020, but decreased compared to fiscal
2019(Base year) We will aim for continued reduction by considering introducing highly efficient equipment and low carbon equipment at times of facilities renovation and renewal

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

Base year(2019)

Unit

2020
Actual

GHG emissions

t-CO2

Scope 1t-CO2

1,968.71

Scope 2t-CO221,185.34
0.05712-

GHG emission intensity (Note 2)
Reduction rate

Crude oil equivalent usage
Monitoring item

t-CO2/m

23,154.05

2

%

Unit

Base year(2019)

2021
Actual

16,804.50

Target year
(2030)

20,130.43-

1,129.44

1,672.17-

15,675.06

18,458.26-

0.040570.04097

0.05140-29.0%-28.3%-10.0%

2020
Actual2021
ActualTarget year
(2030)

Crude oil equivalent usage amountkL

11,220.81

9,156.34

11,234.60-

Crude oil equivalent usage per unit

kL/m2

0.02768

0.022100.02286

0.02491--20.1%-17.4%-10.0%

Reduction rate%

Energy Consumption
Monitoring item

Unit

Energy Consumption
Energy Consumption per unit
Reduction rate

Water Consumption
Monitoring item
Clean water usage
Clean water usage intensity
Reduction rate

Waste
Monitoring item

Base year(2019)

2020
Actual2021
ActualTarget year
(2030)

MWh

44,560.98

36,362.39

44,615.75-

MWh/m20.10992

0.087780.09080

0.09893--20.1%-17.4%-10.0%

%

Unit
㎥
㎥/m2

Base year(2019)
329,687.35

Unit

2020
Actual2021
ActualTarget year
(2030)

220,847.18

255,933.91-

0.53310.5209≦ 0.8133-- 34.4%- 36.0%±0%Base year(2019)

2020
Actual2021
ActualGoal: 10% of reduction frombase year by 2030
Reduction rate：17.4%

0.8133%

Goal: 10% of reduction frombase year by 2030

Target year
(2030)

Waste emissionst

2,693.27

1,656.50

3,164.05-

Coverage rate

%

69.1%

65.1%

70.4%

-

Waste emissions intensity

t/m2

9.61

6.14

9.14

≦ 9.61

Reduction rate%-

- 36.1%- 4.9%±0%23

4. Initiatives on ESG (3)Initiatives for E (Environment) and S (Society) In June 2022, SAR acquired “rank S” (the highest rank) in “CASBEE Real Estate Certification” for “Higashi-Kobe Center Building”
 As initiatives concerning S (Society), SAR has conducted a tenant satisfaction survey in broader scope in fiscal 2021, and is considering to reflect the results obtained to
management and operations

Initiatives for E (Environment)

Signing of green lease contracts (Note 6)◆Signing of green lease contracts◆Receipt of environmental certification (as of Aug 31, 2022)
Number of properties with environmental

13 properties

certifications

Asset type

Baraki Logistics

Logistics

12,471.50 m2

Honmachibashi Tower

Office15,407.83 m2

La Park Kishiwada

Retail

65,663.02 m2

Urban Park Tokiwadai
Koen

Residence

15,708.08 m2

Urban Park Mitsuike Koen

Residence

10,918.37 m2

Iwatsuki Logistics

Logistics

29,729.72 m2

Seishin Building

Office7,624.66 m2

Seiyu Minakuchi

Retail31,829.71 m2★★★

Urban Center Hakata

Office3,566.56 m2★★

Urban Park
Miyamaedaira (Note 5)

Residence

2,039.17 m2

Office25,740.46 m2

Urban Park Daikanyama

Residence

8,261.29 m2

abeno nini (retail)

Retail

4,866.82 m2★★

(Note 2)★
BELS
Certification(Note 3)

CASBEE
Real Estate
Certification

42.7 %

Property name
★★★

DBJ
Green
Building
Certification

Percentage of total floor area (Note 1)

Rank S
Rank A(Note 4)

Higashi-Kobe Center Building

233,827.19 m2

50.0

tenants

Total leased area

63,703.76

m2

Initiatives for S (Society)◆Initiatives for employees

 Diversity & inclusion (one out of five directors is female) Conducts employee satisfaction surveys regularly Introduced various systems in order to care for the health andcomfortableness of employees• Promotion of teleworking and staggered commuting, superflex• Maternity leave, childcare leave, nursing care leave, and reduced
working hours◆Disaster Response Vending Machine•

In several properties held by SAR automatic vending machines thatare able to provide beverages free of charge at times of disaster havebeen installed.
at times of disaster or other emergencies any person can easily
obtain free beverages from the machines.
※They are conventionally used as beverage vending machines.

◆Tenant satisfaction surveys(※) Properties which have received certification in 12FP and thereafter are highlighted.

Percentage of total floor area

84

Total floor area

Total

Goals for 2026

 Established policy for green lease agreement and added green lease clauses
for 59 office tenants, 17 retail tenants, 3 residence tenant, 3 logistics tenants,
and 2 hotel tenants SAR plans to add the same clause to other properties% Tenant satisfaction surveys are conducted periodicallyin order to enhance tenant satisfaction24

4. Initiatives on ESG (4)GovernanceSame boat investment

Calculation Formula for Asset Management Fees

 Aligning the interests of the Sponsor Group with those of the unitholders
by holding 9.7% of the investment units of the Sponsor Group (as of Sep
13, 2022)
 Members of the Asset Manager also hold investment units Aim to further align interests with those of unitholders and increase the linkage torevenues from properties under management.

Star Asia Group(as of Sep 13, 2022)

 Star Asia Group has continued to holdinvestment units since the time of listing, whichstrong supports the growth of SAR.
 Star Asia Group’s founders also as individuals
hold investment units.

＜Founder of Star Asia＞

Number of units
held in same-boat
investment:

186,832 units
Ownership:

9.7 ％Calculation Formula

13FP

Management fees I

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

132,779 thousand yen

Management fees II

NOI × 7.5% (upper limit)

255 805 thousand yen

Acquisition price × 1.0％(upper limit) ※4,000 thousand yen

Acquisition fees※：0.5% for acquisitions from interested parties

Decision-making process Implement decision-making with high transparency, compliant with laws and regulations
 Maintain high ethical standards and execute operations as a steward of investors’ funds

Department
ProposalCompliance officer

Management team of the Asset Manager
 Hold SAR’s units through the employee unit purchase plan Indicates a high level of commitment by the management team to thegrowth of SAR.
 Star Asia Group commences cumulative investment-units investment
program.
 Akiko Kanno, Director and General Manager of the Finance Management
Department, was approved as SAR’s substitute executive officer at the
October 2021 unitholders’ meeting

Review and approval

ReturnInvestment Committee (including external members)
Review and resolution

RejectCompliance Committee (including external members)
Review and resolution

RejectBoard of directors
Review and resolution

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

SAR’s Committee
Review and approval

Disapprove

Items that need to be discussed at
the Compliance Committee25

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

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

5

Collaborative
andCooperative Culture

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

2

Highest EthicalStandards andIntegrity

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

6

Adaptability

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

3

Creativity

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

7

Meritocracy

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

4

Respect for Others

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

8Endless PursuitofExcellence

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

26

５． Progression Status of Mid-Term Plan

27

５． Progression Status of Mid-Term Plan (1)Progression Status of Mid-Term Plan In March 2021, the mid-term plan will set asset scale target: 300 billion yen and distribution growth target per unit: 1,600 yen.
 Progress: Asset scale: 194.8 billion yen (as of August 31, 2022), distribution per unit: 1,485 yen (forecasted cruising distribution)

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

300 billion

Indicative number of properties 100

Distribution Per Unit (Target):

1,600 yen or more

Growth objective of 2% per annum

Progress status as of the end of Aug. 2022
Assets Size

As of the end of January 2022

194.8 billion yen

Priority measures going forward: Expand asset size by gathering highly liquid middle-sizedproperties.
 Improve income stability by diversifying the portfolio.
 Think “outside the box” and consider all measures.
 Sponsor pipeline (The fund’s assets under management of JPY
191.8 billion, pursuit development deals)
 Find deals through the asset management company’s own
unique network.
 Conduct asset replacements as necessary.

Distributions Per Unit

Cruising Distributions Per Unit

1,485 yen

Priority measures going forward: Improve distribution per unit through external growth, internal
growth.
 Cooperate with sub-sponsor (Nippon Kanzai Group) Resolve rent gaps in the office portfolio.
 Rebuild the property management system to suit the portfoliomix.
 Reduce costs leveraging on the economy of scale Optimize repair costs/ capital expenditures.
28

５． Progression Status of Mid-Term Plan (2)Utilization Policy of retained earnings

 Leverage retained earnings including negative goodwill to (1) counteract temporary reductions in revenue (defensive use) and (2) handle issues (loss from removal of buildings,
rent downtime) with redevelopment, etc. of portfolio assets (offensive use), and maintain stable distributions

Retention of gains on
disposal through continuous
asset replacements

Negative goodwill
from merger

Total retained earnings: JPY 8.88 bn(As of the end of the FP ended 7/2022)

Use retained earnings to stabilize distributions
Defensive
Dealing with the temporary reductions in revenue
due to PO costs, the impact of COVID-19, etc.
Drawdown of

12FP
retained earnings(ended 1/2022) JPY 120 mn
13FP(ended 7/2022)

Drawdown ofretained earnings

JPY 80 mn

DPU+JPY 72
DPU+JPY 46

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

Specificplanning / startof construction

BeforePostredevelopment
operation

After
Start ofredevelopment

Existing property

Completion of
new buildings

Redevelopment

Demolition of existing buildings /loss from removal of buildings

Stabilization of distributions per unit
through the use of retained earnings

Construction /completion

New operation phase
Rent downtime during theredevelopment period

Stabilization of distributions
through the use of retained earnings

29

５． Progression Status of Mid-Term Plan (3)Continuous Sponsor Support by Star Asia Group for the Growth of SAR
Star Asia Group’s initiatives for development projects

 Star Asia Group will continue to engage in development projects
Student residencesdeveloped by GSA Star Asia

Residential development
project in Kyoto city (Note 1)

Polaris Holdings’ initiatives for the hotel business Polaris Holdings will focus on profit structure reform by leveraging
expertise in real-estate investment to hotel operations
 Polaris Holdings manages three brands and operates 26 hotels
nationwide in Japan (as of June 30, 2022)
Hotel Buildings and Rooms
operated by Polaris Holdings(Buildings)

Urban Park
Kyoto Nishishichijo

KAMIKITA HOUSE

HAKUSAN HOUSE(Rooms)Properties managed by Star Asia Group (Note 2)
 Star Asia Group operates many hotels for which revenue is expected torecover in future

Total appraisal value (Note 3)

JPY 191.8bn

The consolidated subsidiary of Polaris Holdings is entrusted with
operation of facilities of “Hotel Trusty”(Note 4)
 No.1-4: Acquired by
No.

Asset type

Location(as of July 31, 2022/ based on appraisal value)

Property name

Floor area/numberof rooms

1

KOKO HOTEL Premier Kanazawa Korinbo

6,648m2/ 207 rooms

2

KOKO HOTEL Nagoya Sakae

5,732m2/ 204 rooms

3

KOKO HOTEL Osaka Shinsaibashi

9,506m2/ 211 rooms

4

KOKO HOTEL Premier Kumamoto

8,064m2/ 205 rooms

5

KOKO HOTEL Premier Nihonbashi-Hamacho

7,812m2/ 223 rooms

6

KOKO HOTEL Kobe Sannomiya

4,900m2/ 141 rooms

Star Asia Group No.5-6: Entrusted with theoperations by operator
change

KOKO HOTEL Premier
Kumamoto

Expecting for expansion of SAR’s pipeline30

５． Progression Status of Mid-Term Plan (4)Consideration and examination of initiatives to improve portfolio properties contributing to internal growth(redevelopment, expansion, etc.)

 Star Asia Group determined that SAR can redevelop portfolio properties through initiatives including (1) lowering the level of contribution to revenue per property by expanding theasset size, and (2) securing resources to stabilize distributions by increasing internal reserves including negative goodwill ~ Continuing to consider redevelopment of the portfolio
properties
 As another initiative to improve profitability, SAR is considering extending the building of Funabashi Hi-Tech Park Factory I at the request of its tenant / the Basic Agreement has
already been concluded with the tenant

Consideration of redevelopment of portfolio properties
to strengthen portfolio
STEP 1
Consider the
possibility ofincrease inrevenue by
redevelopment

STEP 2
Explore thepossibility ofcollaboration
with Star Asia
Sogo Kaihatsu

STEP 3

Increase inrevenue after
redevelopment

Status ofSAR’sinitiatives

Analysis of a present status

Confirm thepresence of
any unused
space

Estimated
increase in life
cycle cost✓

Considering
severalcandidateproperties

Formulation of a redevelopment plan
Initial design oftheredevelopedbuildings/
Consider the
possibility of
attracting
tenants

Develop a
postredevelopment
financial
forecast/
Examineprofitability(consideringretention or
sale)

✓

Initial design
completed
Profitability is
being examined

Consideration of extension of Funabashi Hi-Tech Park Factory I Purpose of extension (initiative to increase revenue)
The plan is to increase rental income by generating rent in the extension part by
expanding the existing building while utilizing the existing building Rent income during extension construction
The current lease agreement (payment of current rent) will continue, so there will
be no downtime of rent income
 Overview of the extension construction
Extension area: 576.00m2(Calculated from the area stated in the Basic Agreement (Note 2))
 Overview of the Basic Agreement with the tenant (the plan as of the date of thisdocument)

After the completion of the extension construction, a new lease agreement
will be concluded for a building including the extension part (planned)The estimated leased area after the extension construction (Note 3) would (ifexecuted as planned) be 6.9% larger than the current leased areaThe estimated monthly rent after the extension construction (Note 4) would (ifexecuted as planned) be 20.4% higher than the current monthly rent

Funabashi Hi-Tech Park Factory II

Funabashi Hi-Tech Park Factory I

Examination of effect on portfolio assets
Decrease inaveragebuilding age
due toinclusion of a
new building

Impact on
DPU during
thedevelopment
period /Consider useof retained
earnings

To be judged
based onthe analysis (Note 1)

Extension(planned)31

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

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

IPO
April 20, 2016日(yen)

1st asset
replacement
December 5, 2016

2nd asset
replacement
February 28, 2017

3rd follow-on
offering
August 21, 2018

2nd follow-on
offering
January 12, 2018

3rd asset
replacement
July 23, 2018

4th asset
replacement
August 21, 2018

MergerAugust 12, 2020

5th asset
replacement
March 2, 2020

6th asset
replacement
October 5,2020

4th follow-on
offering
August 2, 2021

5th follow-on
offering
August 21 2022

7th asset
replacement
March 2,2020

75,00070,00065,00060,00055,00050,00045,00040,00035,00030,00025,000Apr20, 20162016年4月20日

SAR

TSE REIT

Apr20, 20172017年4月20日

Apr20, 20182018年4月20日

Apr20, 20192019年4月20日

Apr20, 20202020年4月20日

Apr20, 2021
2021年4月20日

Apr20, 2022
2022年4月20日*The closing price of TSE REIT index as of the date of listing of SAR (1,887.75) has been converted based on the closing price of SAR’s investment units on the same day of 98,300 yen.
Furthermore, SAR has conducted a 2- for-1 investment unit split on the reference date of July 31, 2020. The investment prices prior to such split are also indicated split in half.

32

６． Offering Summary33

６． Offering Summary (1)Realization of Continued External Growth to Achieve the Mid-term Business Plan

 Active management (Note 1) leveraging the information-gathering and market analysis capabilities of the Star Asia Group, including the Asset Manager
 SAR acquired an urban retail facility, a hotel and a mid-sized office building through the Offering, securing stable revenue with expectations for future internal growth

Aiming to maximize unitholder value

Basis ofgrowththrough active management
 Seven times replacements
realizing gains on disposal andimproved portfolio quality

Initiatives

JCR
A (Stable)＜（Ex.） 2nd asset replacement＞⇔

 The first J-REIT to invest
in real estate-backed
mezzanine loan debt(Note 2)
to capture newopportunities for revenue
 Seven mezzanine loan
debt investments(Note 3) todate Five out of sevenmezzanine loan debts
have been redeemed after
receiving sufficientinvestment return

 Increase in asset size through a merger inthe midst of intense competition forproperties
 Improved liquidity through increase inmarket cap
 Improved diversification of asset types
through inclusion of retail facilities

×R&I
A- (Stable)

Negative
Goodwill(Note 4)
8.88 billion yen

Follow-on offerings in two consecutive years and acquisition ofassets with a view to the end of the COVID-19 pandemic

1 property Urban retail facility
4 properties
Residence
2 properties
OfficeHotel
Urban retail facility(Based on
acquisition
price)

OfficeJPY 194.8bn

JPY 61.4bn

Increased risk tolerance with the growth in asset size;
gradual increase in the ratios of retail facilities and hotels

Asset
distribution

Urban Center
Fujisawa

abeno nini

JPY 179.6bn

Asset size
(Based on
acquisition
price)

Inclusion in
Global Index

6.2%

Expectations for internal growth in anticipation of
the end of the COVID-19 pandemic

Hotel
RetailLogistics
Residence
Office34

６． Offering Summary (2)Overview of Assets Acquired Acquisitions in line with SAR’s investment policy: 1) acquisition of assets with stability and growth potential, and 2) investment focused on mid-sized assets The maturation of SAR’s
portfolio base enables SAR to acquire a large multi-use facility

Total
acquisition priceTotal appraisal value

JPY 15,154 mn
Property No.

JPY 15,670 mn

Property name

RTL - 06

abeno nini (retail) (Note 1)

Ratio of mid-sized assets

Average appraisal
NOI yield（

4.5 %Acquisitions via the AssetManager’s unique network

100.0 %

Asset type

Acquisition
price (JPY mn)

Appraisal
value(JPY mn)

Retail

9,500

9,800

Investment
targetarea(Note2)

100.0 %

Appraisal
NOI yield

Acquisition route

4.1 ％Osaka area

HTL – 09

abeno nini (hotel) (Note 1)

Hotel

3,600

3,670

OFC - 24

Urban Center Fujisawa

Office

2,054

2,200

15,154

15,670Total Acquisitions / average

4.9 ％Greater Tokyo
area

Asset Manager’s
unique network

5.6 ％
4.5 ％

Aim of property acquisitions through the Offering With the Offering, SAR acquired a flagship property with a competitive
location and outstanding exterior, which will be positioned in the second
largest asset size out of its portfolio (based on acquisition price)No.

Asset type

Property nameAcquisition price (JPY mn)

1
2
3
4
5

OfficeRetailLogistics
Logistics
RetailSeishin BLDG.
abeno nini (retail)Funabashi Logistics
Iwatsuki Logistics
Suroy Mall Chikushino

11,200
9,500
7,875
6,942
6,550

：

：

：

：

 Timely acquisition of three types of assets looking ahead to the end of the COVID-19
pandemic will contribute asset size expansion and profitability improvement forachieving the Mid-term Business Plan

Urban retailfacility
Hotel
Mid-sized
officeUpside potential
after the COVID-19
pandemic

Aiming of Achievement of
the Mid-term Business Planand Maximization ofUnitholder Value
Stable occupancy rates

contributing to revenue

35

６． Offering Summary (3)Acquisition of flagship urban retail facility and hotel from the Offering with good potential for internal growth A large multi-use facility directly connected to multiple train stations, including “Tennoji” Station, which is one of the largest terminal stations in southern Osaka City / abeno niniabeno nini (sectional ownership)
Property Name

<Number of passengers using nearby stations>abeno nini(retail)abeno nini(hotel)Most-used JR West Line stations(Daily averages for Fiscal Year 2020)

Acquisition price

JPY 9,500 mn

JPY 3,600 mn#

Station

Passengers#

Station

Passengers

Appraisal value

JPY 9,800 mn

JPY 3,670 mn

1

Osaka

290,3171

Umeda

347,504

Appraisal NOI yield

4.1 %

4.9 %

2

Kyoto

127,1782

Namba

268,2033

Tennoji

108,718

3

Tennoji

223,050

4

Kyobashi

94,147

4

Hommachi

179,901

5

Sannomiya

91,978

5

Yodoyabashi

177,241

Location

Abeno-ku, Osaka City, Osaka

AccessConnected to “Tennoji” Station on the JR
Osaka Loop Line and other lines

Structure / floors (Note 1)

RC / 24F (with 2 basement floors)

Total floor area (Note 2)

4,866.82 m2

7,764.81 m2

Ratio ofexclusive area (Note 3)

19.6 %

31.3 %

Occupancy rate (Note 4)(As of July 31, 2022)

100.0 %

100.0 %

No. of tenants /rooms (Note 5)

5 tenants

202 rooms

Completion date (Note 6)
Environmental certification(Note 7)January 2012
CASBEE Real
Estate Rank A(Note 8)-<Abeno-ku population and households>(thousandpeople)(thousandhouseholds)

00

Source: Prepared by the Asset Manager, based on data by Statistics Bureau
Ministry of Internal Affairs and Communications of Japan “Basic
Complete Tabulation and Households” from “Population Census” in
2000, 2005, 2010, 2015 and 2020

Most-used Osaka Metro Line stations(Daily averages for survey date)

Source: West Japan Railway Co., “The datacollection of JR West (2021)”

Most-used Kintetsu Line stations(Daily averages for survey date)#Station1

Osaka Abenobashi

134,9252

Tsuruhashi

124,506

3

Osaka Namba

101,192

4

Kintetsu Nagoya

80,8785

Kyoto

63,506



Passengers

Source: Kinki Nippon Railway Co., “Number ofpassengers at each station as ofNovember 9, 2021”



Source: Osaka Metro Co., “Number of passengers
at each station by line as ofNovember 16, 2021”

This building has a high accessibility,
being connected directly, via
underground connections, to“Tennoji” Station on JR West Lineand Osaka Metro Line, and “Osaka
Abenobashi” Station on Kintetsu Line,
which boast some of the highest
numbers of passengers along theselines
Being connected to these stations
and surrounding retail facilities bypedestrian decks, this building
boasts pedestrian-friendliness andenjoys large number of passers-by36

６． Offering Summary (4)Acquisition of flagship urban retail facility and hotel from the Offering with good potential for internal growth
Overall evaluation by SAR / Property characteristics
abeno nini (retail)abeno nini (hotel)

1. A large multi-use facility containing retail facilities, hotel, and residence (SAR will acquire part of the retail section as well as the whole of the hotel section) in a
popular area directly connected via underground passage to “Tennoji” Station (JR Osaka Loop Line, Osaka Metro Midosuji Line and Tanimachi Line) and “Osaka
Abenobashi” Station (Kintetsu Minami Osaka Line)
2. The Tennoji / Abeno area is a symbolic area in Osaka as of “Kita” (Umeda) and “Minami” (Namba), containing various retail facilities and has high accessibility
to tourist resources
3. The retail section contains tenants that serve visiting customers such asbank, an international school, restaurants, and other tenants, which require
highly convenient locations where many people pass by<Access from nearby stations>

In abeno nini (retail), the current ownerconcluded lease agreements with newtenants for the purpose of tenant
replacement in June 2022, andsucceeded in rent increase with the
new tenants compared to rent level ofthe previous tenants

Bank

Floor

2

domestic and overseas destinations, “Universal Studios
Japan”, which is a tourist spot, and “Kyocera Dome
Osaka”, in which many events are held, so that it canmeet both business and tourism demands

Floor area (m )Stable earnings are ensured by a fixed-term building
lease agreement with fixed rentContributions to future internal growth are also
expected due to the recovery of accommodation
demand from domestic and foreign tourists after the
COVID-19 pandemicHotel Trusty Osaka Abeno operated in abenonini(hotel) has maintained a certain level of ADR(Note 2)
during the COVID-19 pandemic. Although the room
occupancy rate(Note 3) had been low since the firstdeclaration of state of emergency, it has bottomed out
in May 2021

<Operating results of Hotel Trusty Osaka Abeno>% of floor total area

B2F、1-4F

2,900.22

83.3 %

Real estate business

1F

102.47

2.9 %Restaurant

1F

69.74

2.0 %

Restaurant + Warehouse

2F

144.12

4.1 %International school

4F

264.48

7.6 %

3,481.03

100.0 %

Total retail area

<High accessibility to major areas  It has excellent access to “Kansai International Airport”
and “Shin-Osaka” Station, which are gateways forin Osaka>

Due to its high traffic convenience andaccessibility, many passengers pass
the facility. Such advantage is expected
to contribute to improve tenant revenue
and internal growth<Tenant mix (Note 1) of abeno nini (retail) (in sections acquired)>
Entity4. In addition to stable revenue from fixed rent, the hotel section is expected tosee future internal growth backed by further recovery in accommodation
demand owing to the high accessibility to tourist resources and popularity

(JPY)

(%)

37

６． Offering Summary (5)Acquisition of a mid-sized office building from the Offering expected to generate stable revenue A mid-sized office with anticipated stable occupancy deriving from a tenant mix based on the dense population and the convenient location close to “Fujisawa” Station
Property Name

Urban Center Fujisawa

Acquisition price

JPY 2,054 mn

Appraisal value

JPY 2,200 mn

Appraisal NOI yield

5.6 %Location

Fujisawa City, Kanagawa

Accessapprox. 7-minute walk from “Fujisawa”
Station on the JR Tokaido Main Line

Structure / floors

SRC / 8F (with 1 basement floor)

Total floor area

4,392.71 m2

Occupancy rate
(As of July 31, 2022)

97.1 %

No. of tenants

6 tenants

Completion date

April 1991

<Characteristics of the asset of to be acquired>

1.

A mid-sized office building located at an approx. 7-minute walk from“Fujisawa” Station on the JR Tokaido Main Line, with direct access to“Tokyo” Station and “Yokohama” Station

2.

Fujisawa City has the largest population in the Shonan area (Note 2) backed
by its good natural / housing environments, and is expected to continue tohave stable population and households due to work from home demands

3.

Located along the main road connecting “Fujisawa” Station and “Tsujido”
Station, the asset is highly convenient for car drivers as well4.

Its tenants include a municipal facility, a call center, etc. The tenant mix isbased on the local community and the dense population

5.

Suitable for meeting potential needs for satellite offices<Fujisawa City Fujisawa area (Note 1)
population and households>(thousandpeople)<High accessibility to major stationsin the Tokyo metropolitan area>(thousandhouseholds)

0
Source: Prepared by the Asset Manager, based on data by Fujisawa City
“Trend in population and households (estimation based on national
censuses)” (as of October 1st for each year)

With its good location near “Fujisawa”
Station and convenient living facilities
around the station, the area has an
excellent residential environment; thisasset could be redeveloped into anapartment building in the future38

７．Appendix

39

About Star Asia Group
Taro Masuyama
Co-Founder andManaging Partner

Malcolm F. MacLean IV
Co-Founder andManaging Partner

Star Asia Group is a privately owned, independent investment management group that focuses on investments in Japanese real estate
related opportunities.
• Conceived in 2006, Star Asia Group has invested over JPY990 bn since its foundation in 2007. (as of June 2022)• We fully operate under our Guiding Principles which has continuously driven the group to become one of the leading real estate
investment management firms in Japan.
• The group’s strong track record and long-term partnership approach with our investors have been integral in attracting significant
capital from sophisticated global investors, including large U.S. university endowments and foundations, Japanese and European
pension funds, U.S. and Asia based family offices as well as other global real estate investors.
• The group is committed to its disciplined Investment Philosophy and SAR strives for its most important goal of meeting and exceeding
unitholders’ expectations.

Star Asia Group
Listed J-REIT
Asset manager

Private placement
fund management

Star Asia
Management
LimitedStar Asia
Investment
Management Co.,Ltd.

• Registered as an
Investment Advisor
with the US Securities
and Exchange
Commission• Manages multiple
private placement
funds through sistercompanies
Provides know-how
contributing to SAR’sinternal and external growth
as its sponsor

Star Asia
Investment
Corporation• Support of Construction
Management
Department• Provides advice basedon abundant experience
in real estate-related
debt investment• Provides additional
resource as needed

Asset management

Private placement
fund

Unlisted investment company

Star Asia Capital Corp Limited

Star Asia Asset
Advisors Co., Ltd.

• Asset management
and brokerage forprivate placement
funds; real estate
asset and trust
beneficiary interest
brokerage; andproperty management.

Lion Partners GK

Star Asia Sogo
Kaihatsu Co., Ltd.
• Star Asia Group’s realestate development
company

Star Asia Japan
Special Situations
LP• Star Asia Group’s
flagship fund
• Actively investing
based on its
investment capacity• Currently develops
multiple properties
Asset management of
warehousing funds andprovides support fororigination of bridge
funds

Holds SAR’s investment
units

Holds SAR’s investment
units

Develops properties

Provided over JPY90bn
properties (based on
SAR’s acquisition price)
to SAR since SAR’slisting

Development andoperation of newgeneration student
accommodation

GSA Star Asia KK• A 50/50 joint venturewith GSA Group, a
global pioneer inpurpose built student
accommodation (PBSA),
that develops andoperates new-generation
PBSA• Following the first
property (HAKUSAN
HOUSE), developed thesecond (KAMIKITAHOUSE)

Currently operates
properties withpreferential negotiationrights owned by SAR• HAKUSAN HOUSE• KAMIKITA HOUSE

Development andoperation of hospitality
properties; listed

Polaris Holdings
Co., Ltd.
Listed on TSE 2nd
Section （3010）;
develops and operates
hotels• Star Asia Group
became a sponsor in
Nov. 2018 and holds
issued stock

Under the business
partnership agreementwith Star Asia Group, thecompany provides to
SAR information on saleof properties as adeveloper and operatorof hotels

Star Asia Group with expanding business provides strong support to SAR

40

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

Research Focus

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

4

Specialization

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

2

Market Inefficiencies

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

5

Risk Control

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

3

Maximizing and Unlocking
Value

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

6

Dependability, Transparency
and Decisive Action

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

41

Status of Unitholders
at the End of 13th Fiscal Period ended July 2022
Number of investment units by attribute: Total 1,789,389 units
Category

End of 12FP
No. ofinvestment units

End of 13FP

Ratio

No. ofinvestment units

Unitholder name

Ratio

Individual

433,004

24.2%

426,904

23.9%

Financial institution

525,83629.4%

522,997

29.2%

Domestic corporation

82,917

4.6%

75,701

4.2%

Foreign
Securities company

Total

688,34838.5%

688,657

38.5%

59,284

3.3%

75,1304.2%

1,789,389

100.0%

1,789,389

100.0%

Number of unitholders by attribute: Total 26,273
Category

End of 12FP
No. ofunitholders

End of 13FP

Ratio

No. ofunitholders

Ratio

25,55997.2%

25,558

97.3%

Financial institution

40

0.2%

42

0.2%

Domestic corporation

367

1.4%

353

1.3%

Foreign

299

1.1%

293

1.1%

27

0.1%

27

0.1%

26,292100.0%

26,273100.0%

Individual

Securities company

Total

List of major unitholders (Top 10)
Number ofinvestment units

Holding ratio

1

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

223,569

12.5 %

2

Custody Bank of Japan, Ltd.
(Trust Account)

144,733

8.1 %

3

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

83,9324.7 %

4The Nomura Trust and Banking Co., Ltd.
(Trust Account)

66,734

3.7 %5STATE STREET BANK AND TRUSTCOMPANY 505001

49,0502.7 %6Star Asia Capital Ⅰ LLC

46,598

2.6 %6Star Asia Capital Ⅱ LLC

46,598

2.6 %6Star Asia Capital Ⅲ LLC

46,598

2.6 %6Star Asia Capital Ⅳ LLC

46,598

2.6 %

10SSBTC CLIENT OMNIBUS ACCOUNT

28,094

1.6 %

782,50443.7 %

Total
Star Asia Capital Ⅰ～Ⅳ LLC 、Lion Partners GK are Sponsor Group.

42

Change in business results(Unit: million yen)
8FP (ended Jan.
2020) actual

9FP (ended Jul.
2020) actual

10FP (ended Jan.
2021) actual

11FP (ended Jul.
2021) actual

12FP (ended Jan.
2022) actual

13FP (ended Jul.
2022) forecast（※1）

13FP (ended Jul.
2022) actualComparison with
forecast

3,200

3,314

5,648

5,536

5,890

5,899

6,060

161

Office rent

1,145

1,163

1,895

1,807

1,900

1,971

1,974

2

Retail rent

-

-

848

790

842

849

847

△2

Lease business revenue

Residence rent

439

512

889

1,023

1,152

1,210

1,215

4

Logistics rent

817

887

974

909

910

910

910

0

Hotel rent

477

445

423

424

425

424

426

2

Other

320

306

616

582

660

532

686

154

769

741

1,550

1,556

1,629

1,688

1,796

108

2,431

2,573

4,097

3,980

4,261

4,211

4,263

52

420

432

628

633

682

699

697

△1

2,011

2,141

3,469

3,347

3,579

3,511

3,565

53

Mezzanine

21

25

24

24

22

24

28

4

TK distribution

6

7

5

-

46

-

-

-

Gain on sale of real estate
property
Loss on sales of real estate
property

-

648

993

-

-

-

-

19

-

-

316

690

1,096

532

560

543

546

2

1,721

2,131

3,376

2,838

3,087

2,992

3,047

55

1

3

4

3

1

-

2

2

Expenses related to rent
business(Depreciation is excluded)
NOI
Depreciation
Rent revenues/expenses

SGA
Operating income
Non-operating income

227

278

469

434

571

491

489

△2

1,494

1,857

2,911

2,407

2,517

2,500

2,560

59

-

-

8,891

-

-

1,493

1,857

11,801

2,407

2,516

2,499

2,559

59

Cash distribution per unit

2,788 yen

3,436 yen

1,676 yen

1,462 yen

1,478 yen

1,476 yen

1,476 yen

0 yen

FFO per unit※2

3,539 yen

3,033 yen

1,531 yen

1,815 yen

1,787 yen

1,787 yen

1,820 yen

33 yen

141

140

9,135

9,095

8,967

8,826

8,886

59

Non-operating expenses
Ordinary income
Extraordinary income
Net income

Balance of Internal reserves※3（※1) announced in the 12th FP financial briefing report (2022/3/16). （※2) The 10th FP FFO per unit has been calculated excluding gains from negative goodwill. （※3）The balance of internal reserves is calculated
as the total of the temporary difference adjustment reserve plus unappropriated retained earnings as of the end of the period, minus distributions of profits for the period.

43

Balance Sheets

12FP(As of January 31, 2022)

13FP(As of July 31, 2022)(Unit: thousand yen)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets

3,774,975
7,950,192
88,581200,093
155,777
14,763
12,184,385

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

Non-current assets

Accumulated depreciation
Tools, furniture and fixtures, net
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment

114
△71
42
53,053,772△4,755,763
48,298,008
20,635△5,115
15,52099,519△23,76275,75667,545△24,969
42,576
127,283,507
162,754,946

114
△100
14
53,471,574△5,441,732
48,029,841
21,640△5,856
15,784
119,343△28,905
90,437
100,966△30,688
70,278127,283,507
175,715,413

4,082,300
4,082,300

4,082,300
4,082,300

922,220
351,116
10,3793,317
1,287,033
181,084,747

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

Intangible assets
Leasehold rights in trust
Total intangible assets
Investments and other assets
Investment securities
Long-term prepaid expenses
Lease and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance expenses
Total deferred assets
Total assets

13,60334,21947,823
193,316,956

12,58327,37539,959193,488,543

12FP(As of January 31, 2022)

Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable

Property, plant and equipment
Tools, furniture and fixtures

11FP(As of July 31, 2021)

Accrued consumption taxes
Advances received
Other
Total current liabilities

789,397
15,350,000
500,649
49,478605
46,037915,355
30,771
17,682,295

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

1,000,000
73,290,000
5,074
5,476,752
109,745
79,881,571
97,563,867

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

59,115,701

59,115,701

25,132,218

25,132,218

8,802,324
8,802,324

8,713,411
8,713,411

2,809,755

2,813,756

36,744,298
95,859,999

36,659,386
95,775,087△106,910△106,910
１ 95,753,089
193,316,956

28,29728,297
１ 95,803,384
193,488,543

Non-current liabilities
Investment corporation bonds
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
Unitholders’ capital surplus
Voluntary reserve
Reserve for temporary difference adjustment
Total voluntary reserve
Unappropriated retained earnings (undisposed
loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

44

Statement of Income(Unit: thousand yen)
12FP
(As of January 31, 2022)

Operating revenue
Lease business revenue
Other lease business revenue
Other revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody and administrative service fees
Directors’ compensations
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of unpaid distribution
Interest on refund
Gain on donation of non-current assets
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses
Amortization of investment unit issuance expenses
Amortization of investment corporation bondissuance costs
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

13FP(As of July 31, 2022)

5,467,061
423,937
69,4185,960,418

5,611,196
449,218
28,525
6,088,939

2,311,905
392,495
42,7322,400
122,935
2,872,468
3,087,950

2,494,593
392,584
38,4282,400
113,213
3,041,220
3,047,719

48
1,326
106
1,481

55
1,470
262
516
2,305

337,1212,473
224,543850

338,087
3,500
140,164
1,020

6,843

6,843

571,833
2,517,598
2,517,598
605
605
2,516,993
292,7622,809,755

489,615
2,560,409
2,560,409
605
605
2,559,804
253,951
2,813,756

45

Portfolio List (as of Jul 31, 2022)
Property nameLocation

AcquisitionPrice(mill)

Appraisal
Investment
value atratio
end of(%)
13 FP(mill)Appraisal
NOI yield(%)(＊)

Property nameLocation

AcquisitionPrice(mill)

Appraisal
Investment
value atratio
end of(%)
13 FP(mill)Appraisal
NOI yield(%)(＊)

Minato Ward, Tokyo

2,973

3,070

1.7

4.6

Honmachibashi Tower

Osaka City, Osaka

6,065

7,070

3.4

5.1

Urban Park Mitsuike Koen

Yokohama City, Kanagawa

3,160

3,520

1.8

5.5

Nishi-Shinjuku Matsuya Building

Shibuya Ward, Tokyo

1,763

2,650

1.0

6.7

Urban Park Ryogoku

Sumida Ward, Tokyo

1,115

1,240

0.6

4.6

Shibuya MK Building

Shibuya Ward, Tokyo

2,042

3,290

1.1

5.6

Urban Park Mizonokuchi

Kawasaki City, Kanagawa

2,019

2,100

1.1

4.8

Asahi Building

Yokohama City, Kanagawa

6,320

8,280

3.5

5.0

Urban Park Miyamaedaira

Kawasaki City, Kanagawa

1,060

1,230

0.6

5.0

Hakata-eki East Place

Fukuoka City, Fukuoka

2,286

3,050

1.3

6.2

Urban Park Tsurumi

Yokohama City, Kanagawa

1,113

1,190

0.6

5.0

Nihonbashi Hamacho Park Building
Amusement Media Gakuin
HonkanHigashi Kobe Center Building
Amusement Media Gakuin
ShinkanSeishin Building

Chuo Ward, Tokyo

1,450

1,530

0.8

4.7

Subtotal

Shibuya Ward, Tokyo

2,580

2,790

1.4

4.0

Kobe City, Hyogo

7,440

7,390

4.1

5.5

Shibuya Ward, Tokyo

1,020

1,230

0.6

4.0

Shinjuku Ward, Tokyo

11,20011,7006.2

3.6

Urban Center Kanda Suda cho

Chiyoda Ward, Tokyo

5,350

5,440

3.0

3.7

Urban Center Kanda

Chiyoda Ward, Tokyo

4,590

4,630

2.6

3.8

Takadanobaba AccessShinjyuku Ward, Tokyo

3,990

3,990

2.2

3.9

Azabu Amerex Building

Minato Ward, Tokyo

2,780

2,910

1.5

3.7

Hiei-Kudan Building

Chiyoda Ward, Tokyo

2,400

2,390

1.3

3.8

Undab Center Shin-Yokohama

Yokohama City, Kanagawa

2,300

2,540

1.3

5.0

The Portal Akihabara

Chiyoda Ward, Tokyo

1,510

1,490

0.8

3.8

Urban Center Tachikawa

Tachikawa City, Tokyo

1,804

1,980

1.0

5.2

Urban Center Hakata

Fukuoka City, Fukuoka

2,870

3,100

4.4

30,365
2,069
1,750
3,827
3,248

43,950
7,670
4,330
8,900
4,980
1,550
890
3,180
1,710
704
33,914
2,280
1,410
3,530
3,200

21.0
3.9
2.0
4.4
2.6
0.7
0.5
1.5
1.0
0.4
16.9
1.2
1.0
2.1
1.8

5.0
4.8
5.8
5.3
3.9
5.8
7.0
5.7
6.5
6.8
5.2
5.5
4.3
4.2
4.5

72,73380,5201.6
40.5

Iwatsuki Logistics
Saitama City, Saitama
Yokohama Logistics
Yokohama City, Kanagawa
Funabashi Logistics
Funabashi City, Chiba
Baraki Logistics
Ichikawa City, Chiba
Tokoyozawa Logistics
Tokorozawa City, Saitama
Funabashi Nishiura Logistics I
Funabashi City, Chiba
Funabashi Nishiura Logistics II
Funabashi City, Chiba
Matsubushi Logistics
Kita-Katsushika-gun, Saitama
Funabashi Hi-Tech Park Ⅰ
Funabashi City, Chiba
Subtotal
Osaka City, Osaka
R&B Hotel Umeda East
Smile Hotel Namba
Osaka City, Osaka
REMBRANT STYLE Tokyo Nishi-kasai
Edogawa Ward, Tokyo
Best Western Yokohama
Yokohama City, Kanagawa

37,779
6,942
3,560
7,875
4,700
1,300
821
2,755
1,710
702

4.5

The BREAKFAST HOTELFukuoka Tenjin

Fukuoka City, Fukuoka

1,970

1,910

1.1

4.4

GLANSIT Akihabara

Chiyoda Ward, Tokyo

2,500

2,440

1.4

3.9

REMBRANT STYLE Tokyo Nishikasai Grande

Edogawa Ward, Tokyo

3,180

3,130

1.8

4.0

Subtotal

2,000
20,544

1,410
19,250

1.1
11.4

3.6
4.3

Total

179,675

195,794

100.0

4.9

Retail

La Park Kishiwada

Kishiwada City, Osaka

5,400

5,230

3.0

7.1

Suroy Mall Chikushino

Chikushino City, Fukuoka

6,550

6,320

3.6

5.7

Seiyu Minakuchi

Koka City, Shiga

3,320

3,330

1.8

7.4

KOKO HOTEL Namba

Osaka City, Osaka

Toshima Ward, Tokyo

2,984

3,280

Minato Ward, Tokyo
Shibuya Ward, Tokyo

18,2542,045
6,315

18,160
2,740
9,430

1.7
10.2
1.1
3.5

6.2
4.4
4.8

Urban Park Namba

Osaka City, Osaka

1,490

1,530

0.8

5.1

Urban Park Gokokuji

Toshima Ward, Tokyo

1,460

1,560

0.8

4.3

Period-end appraisal value：

195,794 million yen

Urban Park Kashiwa

Kashiwa City, Chiba

1,186

1,190

0.7

4.9

Urban Park Ryokuchi-koen

Suita City, Osaka

1,550

1,680

0.9

5.6

Total book value：

179,572 million yen

Urban Park Koenji

Suginami Ward, Tokyo

1,167

1,180

0.6

4.6

Period-end unrealized gains (losses)：

16,221 million yen

Urban Park Ichigao

Yokohama City, Kanagawa

1,810

2,060

1.0

4.8

Urban Park Gyotoku

Ichikawa City, Chiba

0.8

4.8

Net assets per unit：

53,539 yen

Shiroi City, Chiba
Osaka City, Osaka
Osaka City, Osaka
Shibuya Ward, Tokyo
Yokohama City, Kanagawa

1,430
2,470
2,150
993
1,740
3,506

1,570

Shiroi Logiman
Urban Park Sekime
Urban Park Imazato
Urban Park Yoyogi
Urban Park Tokiwadai Koen

2,470
2,380
1,070
1,890
3,920

1.4
1.2
0.6
1.0
2.0

5.7
5.3
5.4
3.6
5.4

Unrealized gains per unit：

9,066 yen

NAV per unit (*1)：

61,129 yen

P/NAV per (*2)

：

0.97

BAGUS Ikebukuro West
Urban Park Azabujuban
Urban Park Daikanyama

Subtotal

4.1

Hotel

Subtotal

Logistics

OfficeMinami-Azabu Shibuya Building

Residence(*1) NAV per unit = (Period-end net assets + Period-end unrealized gains – Total cash distribution) /Total number of investment units issued and outstanding (*2) P/NAV per ＝Investment unit price /NAV per unit (Investment unit price on July 29, 2022: 59,500 yen)（＊） “Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of the property inthe real estate appraisal report, rounded to the second decimal place.

46

List of Newly Acquired and Mezzanine Loan Investment

Properties acquired after 13FP
Property name

OfficeRetailUrban Center Fujisawa
abeno nini （Retail）

Hotel

abeno nini （Hotel）

AcquisitionPrice(mill)

Location

Fujisawa City, Kanagawa
Osaka City, Osaka

2,054
9,500

Osaka City, Osaka
Sub total

Total

Appraisal value at
end of
13 FP(mill)Appraisal NOI yield(%) (※)

2,200
9,800

5.6
4.1

3,600
15,154

3,670
15,6704.9
4.5

194,829

211,464

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

Mezzanine loan debt investment （as of July 31, 2022）
Type

Name of the security（asset overview）

Period-end
book value

Underlying asset, etc.
Asset nameLocationInterest rate (※)

Mezzanine(Subordinated bonds)

Star Asia Mezzanine Loan Debt Investment
Series 6

400
million yen

Tajimi Logistics Center

Tajimi-shi, Gifu

Base rate +7.0%

Mezzanine(Subordinated bonds)

Star Asia Mezzanine Loan Debt Investment
Series 7

400
million yen

Relief Premium Haneda

Ota-ku,Tokyo

Base rate +5.0%

800※：The base interest rate : JBA 3-month yen TIBOR

47

Balance of Payments of Individual Properties (1)Asset Type
Property nameAcquisition priceAppraisal value
Structure/Floors
Location
Lot area
Total floor areas
Construction completion
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee

OFC-01
Minami-Azabu Shibuya
Building

OFC-03

OFC-04
Nishi-Shinjuku Matsuya
Building

Honmachibashi Tower

OFC-06

OFC-08

OFC-09Shibuya MK Building

Asahi Building

Hakata-eki East Place

2,973 million yen
3,070 million yen
SRC B1/7F
Minato Ward, Tokyo

6,065 million yen
7,070 million yen
S/SRC B1/21F
Osaka City, Osaka

1,763 million yen
2,650 million yen
SRC B1/9F
Shibuya Ward, Tokyo

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

6,320 million yen
8,280 million yen
S・SRC B2/12F
Yokohama City, Kanagawa

2,286 million yen
3,050 million yen
SRC 9F
Fukuoka City, Fukuoka

766.11㎡

1,274.37㎡

589.94㎡(surface right)

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

1,129.86㎡

4,137.21㎡
June 15, 1993

15,407.83㎡
February 8, 2010

5,117.80㎡
May 28, 1987

1,982.86㎡
July 31, 1993

12,353.83㎡
November 25, 1994

6,243.13㎡
February 24, 1986

13FP

12FP

13FP

12FP

13FP

12FP

13FP

12FP

13FP

12FP

13FP

12FP

75,61998,919217,480

237,698

100,011

101,740

79,80776,808226,273

229,194

109,992

114,885

68,54990,068191,314

209,238

91,421

93,53575,331

72,525

210,114211,318

98,944

104,408

7,069

8,850

26,16628,459

8,590

8,204

4,475

4,282

16,15817,875

11,048

10,47735,81628,95762,731

69,82543,95735,154

13,03017,54560,91055,59826,77528,629

5,622

8,252

6,002

14,02013,860

7,149

6,699

4,812

4,726

14,758

14,778

8,131

Utilities expenses

400

400

400

400

400

400

350

350

400

400

400

400

Insurance premium

5,229

6,080

20,681

23,844

7,398

7,573

2,914

3,194

18,26821,144

7,061

7,368

Repair expenses

150

148

465

457

167

164

58

57

487

479

219

216

3,631

1,280

1,328

3,130

6,414

1,615

463

1,435

9,918

2,153

2,000

3,987

Taxes and dues

4,510

4,498

19,70219,807

3,480

3,445

4,277

4,418

15,757

15,952

7,084

7,321

Other expenses

16,272

10,546

6,132

8,324

18,947

15,255

154

3,363

1,319

689

1,877

1,083

NOI

39,802

69,961

154,749

167,872

56,054

66,585

66,77659,263

165,362

173,595

83,21686,256

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

12,64812,65545,43545,504

10,49010,534

3,693

3,761

28,772

29,3789,513

10,44757,306109,314122,368

45,56356,051

63,08355,502

136,590

144,21773,70375,808

-

1,239

3,244

-

1,242

2,691

1,706

5,835

23,624

6,527

19,81365,182

NCF

39,802

68,722

151,505

167,872

54,811

63,89465,07053,428

141,738

167,067

63,40321,073

2,964,980

2,953,564

5,687,374

5,641,870

1,818,187

1,810,344

2,089,124

2,091,197

6,299,284

6,276,434

2,345,389

2,400,125

Trust fee

Period-end book value

27,15448

Balance of Payments of Individual Properties (2)Asset Type
Property name

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

OFC-13
Amusement Media Gakuin
Shinkan

OFC-14OFC-15
Urban Center
Kanda Suda-cho

Seishin Building

Acquisition price

1,450 million yen

2,580 million yen

7,440 million yen

1,020 million yen

11,200 million yen

5,350 million yen

Appraisal value

1,530 million yen

2,790 million yen

7,390 million yen

1,230 million yen

11,700 million yen

5,440 million yen

Structure/Floors

SRC 11FSRC S 8F/B1F

SRC 14F

RC７F

SRC 10F/1B

SRC 10F/1B

Location

Chuo Ward, Tokyo

Shibuya Ward, Tokyo K

Kobe City, Hyogo

Shibuya Ward, Tokyo

Shinjyuku Ward, Tokyo

Chiyoda Ward, Tokyo

Lot area

319.04㎡Number derived by multiplying theratio of holdings）
2,383.76㎡Number derived by multiplying
the ratio of holdings）

433.21㎡

8,488.11㎡

203.43㎡

886.93㎡

590.72㎡

1,892.18㎡

25,740.46㎡

913.71㎡

7,624.66㎡

4,994.70㎡

July 13, 1992

November 2, 1994

January 6, 1992

January 25, 1999

March 31, 1989

October 28, 1991

Total floor areas
Construction completion
Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue
Total operating expenses
from real estate leasing

12FP

13FP

49,807

13FP

12FP

39,904279,400

13FP

12FP

13FP

12FP

298,919

257,794

13FP

12FP

13FP

252,394

129,510

139,829
131,858

39,904

253,508

272,990

241,421235,569

122,674--

25,89225,92916,372

16,824

6,836

7,970

12,141

12,809111,799

116,561

68,506

65,46831,46740,183

Management fee

813

678

25,45024,797

19,933

11,770Utilities expenses

400

400

Insurance premium

387

Repair expenses

175

Trust fee
Taxes and dues
Other expenses

49,807

12FP

400

29,50332,435（※）（※）

19,854

11,803

350

350

350

350

11,321

12,403

4,773

5,896
208

955

939

288

283

211

472

7,987

5,554

14,560

10,233

149

10,715

4,299

4,371

28,64029,02920,726

21,497

10,652

10,915

6,450

6,627

18,862

23,404

1,326

Depreciation

2,837

Operating income (loss)
from real estate leasing

34,828Period-end book value

400

172

37,665

NCF

（※）

-

NOI

Capital expenditures（※）

27,094

52,625

2,921

4,221

50,875

167,601

4,221

35,027

182,358

20,651

39,117

1,672

846

3,527

327

19,292

189,287

186,925

98,04399,645

1,676

14,043

14,964

8,819

8,846
90,79924,173

48,40346,653

132,574

143,240

18,97817,615

175,244

171,961

89,224

-

2,464

-

-

93,44237,585347-

24,00738,507-

1,564

37,665

24,63052,62550,875

74,158144,772

20,303

19,292

165,280

148,417

98,04398,081

1,447,445

1,446,988

2,583,995

2,579,773

7,659,246

7,657,714

1,037,206

1,035,530

11,253,497

11,277,041

5,351,761

5,344,479(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

49

Balance of Payments of Individual Properties (3)Asset Type
Property name

OFC-16
Urban Center
Kanda Tsukasamachi

OFC-17

OFC-18OFC-19

Takadanobaba Access

Azabu Amerex Building

Hiei Kudan Building

OFC-20Urban Center
Shin - Yokohama

OFC-21The Portal Akihabara

Acquisition price

4,590 million yen

3,990 million yen

2,780 million yen

2,400 million yen

2,300 million yen

1,510 million yen

Appraisal value

4,630 million yen

3,990 million yen

2,910 million yen

2,390 million yen

2,540 million yen

1,490 million yen

Structure/Floors

SRC 8F/1B

SRC 14F/1B

SRC 8F/1B

SRC S 11F/1B

S RC 1F/1B

SRC S 8F

Location

Chiyoda Ward, Tokyo

Shinjyuku Ward, Tokyo

Minato Ward, Tokyo

Chiyoda Ward, Tokyo

Yokohama City, Kanagawa

Chiyoda Ward, Tokyo

Lot area

709.52㎡

930.70㎡

601.71㎡

700.59㎡

184.76㎡

5,356.99㎡

1,010.67㎡

March 17, 1992

May 31, 2002

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

4,629.27㎡

5,757.14㎡

2,909.80㎡

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

January 20, 1988

January 14, 1994

June 30, 1988

September 17, 1991

12FP

12FP

13FP

12FP

13FP

12FP

13FP

12FP

13FP

12FP

13FP

68,261

81,562

112,884

113,062

71,22972,99566,434

69,07380,96480,73632,98636,23364,202

76,259102,460

102,526

68,117

69,62366,434

69,073

71,944

71,906

31,83633,248

4,058

5,302

10,424

10,535

3,111

3,372

-

-

9,019

8,830

1,150

2,984

48,64041,14932,08036,19920,68523,361

20,756

21,621

28,51732,241

6,223

8,109

8,883

10,494

13,30813,398

7,185

7,181

3,539

3,480

8,866

9,003

2,835

2,974

Utilities expenses

400

Insurance premium

4,944

Repair expenses

204

Trust fee
Taxes and dues

20,431Other expenses

6,313

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

13FP

7,463
19,620

400
5,319
200
5,939
7,575
11,21840,413

400
7,661
223
898
9,011
576
80,804

10,521

12,425

8,980

9,098

27,987

71,823

28,101-

74,154

NCF△ 54,534

Period-end book value

4,720,241

12,311
4,735,916

80,804
3,969,364

400
8,715
219
3,506
9,266
692
76,862
9,675

375
2,877
105
1,976
7,598
567
50,543
3,446

67,18647,096

46,898

14,94029,964
4,006,586

35,602
2,789,026

375
3,099
103
2,777
7,818
2,005
49,634

500
29
189
270
6,630
9,597
45,678

3,817

3,909

45,817

41,769--49,634
2,785,209

45,6782,394,739

500
39
186
974
6,844
9,596
47,452

350
6,043
193
3,705
7,697
1,660
52,447

350
6,501
190
7,733
7,779
683
48,494

400
1,048
40
200
1,546
153
26,762

9,869

12,585

3,472

43,542

42,57835,90923,289-60,22353,970-3,909

47,4522,390,829△ 7,776
2,381,264△ 5,476
2,422,649

26,762
1,499,581

400
1,179
39
120
1,578
1,817
28,123
3,472
24,65028,123
1,496,10850

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

OFC-22
Urban Center Tachikawa

OFC-23
Urban Center Hakata

RTL-01
LaPark Kishiwada

RTL-02
Suroy Mall Chikushino

RTL-03
Seiyu Minakuchi

RTL-05
BAGUS Ikebukuro West

Acquisition price

1,804million yen

2,870million yen

5,400 million yen

6,550 million yen

3,320 million yen

2,984million yen

Appraisal value

1,980million yen

3,100million yen

5,230 million yen

6,320 million yen

3,330 million yen

3,280million yen

Structure/Floors

RC S 6F/1B

S 8F

RC S 3F

S 2F

S 4F

SRC 8F/2B

Tachikawa city, Tokyo

Fukuoka city, Fukuoka

Kishiwada city, Osaka

Chikushino city, Fukuoka

Koka city, Shiga

Toshima Ward, Tokyo

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

964.80㎡

656.72㎡

39,799.74㎡

4,659.20㎡
May 30, 1990

3,566.56㎡
August 27, 2020

65,663.02㎡
August 30, 1994

12FP

12FP

13FP

12FP

13FP

12FP

13FP

13FP

31,028.62㎡
June 22, 2007

31,829.71㎡
May 31, 1999

54,37285,02969,58777,043496,379

503,192354,964

301,52248,93137,92369,58777,043

415,561

414,452

275,178

274,833

5,441

47,106--80,81788,73979,785

26,68810,511

69,303

5,370

12,612

282,680

310,372

87,73568,906

4,726

4,824

4,731

5,140

118,874

123,548

23,22924,525

Utilities expenses

361

Insurance premium

4,289

Repair expenses

128

Trust fee
Taxes and dues

694

Other expenses

279

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

43,861

NCF

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

31

4,609

400
4,498
139
45,5304,551
9,358
15,725

361
109
29
138
64,217

4,790

15,272

39,251860
43,001

400
119
486
6,314
150
64,431

1,850
103,932
1,184
934
44,045
11,859213,699

15,27425,431

10,93548,94520,825-△ 5,099

64,217

1,850
114,371
1,164
16,61643,998
8,823
192,820

350
5,421
622
10,03019,37928,702
267,229

（※）

（※）

（※）

128,018

128,596

350
5,985
612
1,440
19,79916,192
232,615-

15,8395,394,670（※）

48,682

1,161

Period-end book value
1,814,395
2,884,118
1,830,430
2,870,005(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

13FP

166,584

49,157

197,859

12FP

243,633

188,267

63,26913FP

23,48526,235

144,138
5,417,634

267,2296,474,017

1,497.45㎡
November 20, 1992

12FP

26,09823,595264.15㎡

58,23826,441

2,284

209,129

101,920

102,155

55,953

-

8,434

-

1,674

232,6156,450,531

119,583
3,273,918

128,596
3,247,477

56,563
3,006,464

59,426
2,304
57,12259,426
3,004,160

51

Balance of Payments of Individual Properties (5)Asset Type
Property name

RSC-01
Urban Park Azabujuban

RSC-02
Urban Park Daikanyama

RSC-05
Urban Park Namba

RSC-06
Urban Park Gokokuji

RSC-07
Urban Park Kashiwa

RSC-08
Urban Park Ryokuchi-koen

Acquisition priceAppraisal value

6,315 million yen
9,430 million yen

1,490 million yen
1,530 million yen

1,460 million yen
1,560 million yen

1,186 million yen
1,190 million yen

1,550 million yen
1,680 million yen

Location

2,045 million yen
2,740 million yen
SRC with slate roofing
B1/12F
Minato Ward, Tokyo

Lot area

417.67㎡

Total floor areas

2,564.94㎡

Structure/Floors

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

RC B1F/5F

SRC B1F/8F

RC 8F

Osaka City, Osaka

Toshima Ward, Tokyo

Kashiwa City, Chiba

Suita City, Osaka

2,469.06㎡

670.39㎡

1,597.85㎡

2,804.56㎡

8,261.29㎡

13FP

12FP

13FP

942.66 m 2 (Of which, 50.85 m2 is
contributed to Toshima Ward as
road)

2,776.87㎡
January 9, 2013
12FP

13FP

2,451.72㎡

4,243.71㎡

5,854.64㎡

February 28, 1990

August 28, 1997

March 10,1989

12FP

12FP

13FP

13FP

12FP

13FP

55,79055,865

186,998

192,871

41,89947,40238,35848,33837,56638,33655,633

61,57552,77054,276

176,937

184,843

39,47145,72536,88746,442

36,66736,90550,801

56,794

3,019

1,589

10,060

8,027

2,427

1,676

1,470

1,896

899

1,430

4,832

4,780

11,66010,96836,09737,581

13,346

18,68019,54721,098

8,047

9,206

15,98017,665

2,257

2,107

8,900

9,650

2,419

2,512

4,015

4,364

1,880

2,092

1,758

2,604

Utilities expenses

350

Insurance premium

628

Repair expenses

74

Trust fee
Taxes and dues

784
2,873

Other expenses

4,693

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

44,129NCF

43,832

Period-end book value

RC 14F

Shibuya Ward, Tokyo

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

November 29, 1999
12FP

①RC B1/3F ②RC B1/9F

5,167
38,962297
2,072,910

350
776
72
2,633
2,937
2,090
44,897

350
3,666
251
5,415
11,4536,060
150,900

5,172

13,51439,725

137,385

189

2,011

44,7082,067,927

148,8886,359,097

350
4,058
247
2,812
11,777
8,685
155,289

450
333
85
3,100
2,833
4,123
28,553

12,631

7,544

142,657

21,008

1,093-

154,195
6,347,559

28,553
1,484,142

350
369
84
4,966
2,841
7,557
28,721

400
2,202
67
7,877
1,897
3,086
18,810

7,693

5,709

21,027

13,1005,511

221

23,2091,481,961

18,5891,495,700

400
2,560
66
4,733
1,914
7,059
27,240

350
520
111
1,499
2,949
735
29,519

5,775

7,553

21,46521,965

10,7701,544

16,4691,500,696

27,9741,230,838

350
567
109
1,459
2,955
1,671
29,130

450
3,396
165
4,328
3,588
2,292
39,653

7,598

8,204

21,531

31,448305

2,733

28,824
1,223,545

36,9191,590,072

350
2,470
162
2,871
3,585
5,619
43,9108,271
35,6382,686
41,224
1,584,487

52

Balance of Payments of Individual Properties (6)Asset Type
Property name

RSC-09

RSC-10

RSC-11

RSC-12

RSC-13

RSC-14

Urban Park Koenji

Urban Park Ichigao

Urban Park Gyotoku

Shiroi Logiman

Urban Park Sekime

Urban Park Imazato

Acquisition price

1,167 million yen

1,810 million yen

1,430 million yen

2,470 million yen

2,150 million yen

993 million yen

Appraisal value

1,180 million yen

2,060 million yen

1,570 million yen

2,470 million yen

2,380 million yen

1,070 million yen

Structure/Floors

RC 4F

RC SF/1B

SRC 10F

RC 13F

SRC 15F

RC 10F

Location

Suginami Ward, Osaka

Yokohama City, Kanagawa

Ichikawa city, Chiba S

Shiroi city, Chiba

Osaka City, Osaka

Osaka City, Osaka

Lot area

988.26㎡

1,758.84㎡

1,122.57㎡

2,346.39㎡

1,803.70㎡

8,190.11㎡

4,862.83㎡

August 18, 1989

December 20, 1991

12FP

12FP

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

1,524.34㎡

5,243.85㎡

3,397.95㎡

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

October 13, 1987

July 10, 1998

March 1, 1995

May 9, 1995

12FP

13FP

13FP

12FP

13FP

12FP

13FP

13FP

13FP

33,55936,496

57,62758,96044,13036,546140,695

142,518

81,40485,72439,76939,231

31,12933,871

56,10657,29041,921

34,908

133,783

134,952

78,371

83,08839,65239,037

2,430

2,624

1,521

1,670

2,209

1,638

6,911

7,566

3,033

2,636

117

193

10,504

11,322

12,272

14,015

9,284

9,958

61,22560,20036,11833,393

10,376

13,015

2,286

2,334

3,094

4,361

2,154

2,633

5,964

6,078

10,151

10,118

4,324

4,190

Utilities expenses

400

Insurance premium

1,402

Repair expenses

50

Trust fee
Taxes and dues

3,177
1,009

Other expenses

2,177

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

23,055

NCF

23,055Period-end book value

12FP

2,796
20,2581,187,182

400
1,645
50
3,370
1,041
2,481
25,173

400
1,425
147
2,519
3,941
742
45,355

2,883

5,458

22,29039,897

3,478

399

21,695
1,187,777

44,956
1,915,481

400
1,578
145
2,633
3,963
933
44,945

400
1,602
97
2,337
2,146
545
34,846

5,469

4,315

39,47530,530598

4,775

44,346
1,910,611

30,0701,510,209

400
1,179
95
2,562
2,170
915
26,588750
44829
10,994
13,92628,716
79,4704,359

19,16822,22860,301762

1,840

25,825
1,506,612

77,6292,415,591

750
43
815
10,544
13,921
28,04882,318

375
2,286
286
13,762
5,288
3,969
45,285

19,241

11,90563,07633,380761

29,38581,556
2,397,111

15,9002,193,913

375
2,402
281
12,3155,291
2,609
52,331

375
293
145
1,220
3,202
814
29,393

12,557

5,196

39,77324,197

12,957

112

39,373
2,194,313

29,281
977,690

375
304
142
3,737
3,199
1,065
26,216
5,203
21,012
460
25,755
972,94753

Balance of Payments of Individual Properties (7)Asset Type

RSC-15

Property nameUrban Park Yoyogi

Acquisition priceAppraisal value

1,740 million yen
1,890 million yen

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

RSC-17
Urban Park
Mitsuike Koen

3,506 million yen
3,920 million yen

3,160 million yen
3,520 million yen

RC 5F

RC 6F

RC 8F
Shibuya Ward, Tokyo
464.09㎡

Yokohama City, Kanagawa Yokohama City, Kanagawa
12,544.61㎡
10,216.95㎡

RSC-18

RSC-19

RSC-20Urban Park Ryogoku

Urban Park Mizonokuchi

Urban Park Miyamaedaira

1,115million yen
1,240 million yen

2,019million yen
2,100million yen

1,060million yen
1,230million yen

SRC 9F

RC 5F

S Alloy-plated steel plate 3F

Sumida Ward, Tokyo
669.98㎡

Kawasaki City, Kanagawa
2,624.51㎡

Kawasaki City, Kanagawa
1,239.53㎡

1,418.03㎡

15,708.08㎡

10,918.37㎡

2,351.42㎡

5,029.52㎡

2,039.17㎡

September 4, 2017

Feb 17, 1994

March 24, 1992

October 31, 1997

August 23, 1988

June 10, 2021

12FP

13FP

12FP

13FP

12FP

13FP

37,58542,502

141,887

143,364

127,356

130,541

33,01937,01157,05565,71322,22532,927

34,10739,709136,498

135,861

121,431

122,424

28,961

34,253

55,10961,116

21,34432,620

3,477

2,792

5,388

7,502

5,924

8,116

4,058

2,758

1,945

4,597

881

307

11,111

7,804

34,50340,084

27,13741,321

5,726

11,7899,601

26,948

9,155

4,605

2,326

2,309

11,645

11,186

10,67010,539

2,198

2,660

4,143

4,566

1,185

1,312

Utilities expenses

400

Insurance premium

251

Repair expenses

50

Trust fee
Taxes and dues

1,534
1,660

Other expenses

4,887

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

26,473

NCF

26,473

Period-end book value

RSC-16
Urban Park
Tokiwadai Koen

4,393
22,0801,726,819

400
254
49
588
1,655
2,546
34,697

400
1,805
421
5,511
10,8293,888
107,384

4,393

12,62430,304

94,75934,697
1,722,425

107,384
3,622,941

400
2,032
414
9,276
10,793
5,981
103,279

400
1,161
339
8,705
5,860
100,218

12,633

11,77090,646
1,064
102,215
3,611,372(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

400
1,342
333
12,414
8,813
7,477
89,220

12FP

13FP

361
387
66
1,599
2
1,109
27,29312,0142,401

88,44877,20524,892

5,540

20,625

94,6783,286,174

68,594
3,294,786

1,954
25,3391,150,151

12FP

400
526
72
4,533
1,851
1,744
25,222

13FP

361
695
137
2,580
4
1,679
47,453

2,503

5,646

22,71841,806

1,886
23,335
1,149,533

1,785
45,6672,085,971

400
982
149
11,6093,404
5,837
38,764

12FP

13FP

361
153
47
16
1
7,390
13,069

5,742

4,522

33,021

8,547

3,857
34,9062,084,086

290
12,7791,105,101

400
52
51
264
1,605
919
28,321
4,523
23,79728,321
1,100,577

54

Balance of Payments of Individual Properties (8)Asset Type

RSC-21

LGC-01

LGC-02

LGC-03

LGC-04

LGC-05

Property nameUrban Park Tsurumi

watsuki Logistics

Yokohama Logistics

Funabashi Logistics

Baraki Logistics

Tokorozawa Logistics

Acquisition priceAppraisal value

1,113 million yen
1,190 million yen

6,942 million yen
7,667 million yen

7,875 million yen
8,900 million yen

4,700 million yen
4,980 million yen

1,300 million yen
1,550 million yen

Structure/Floors

RC 6F

Steel construction, zinc plated
steel roofing, 5 floors

3,560 million yen
4,330 million yen

RC・S 5F

S 2F

Location

Yokohama City, Kanagawa

Saitama City, Saitama

Lot area

2,172.70㎡

15,623.14㎡

Total floor areas

3,169.13㎡

29,729.72㎡

February 17, 1994

October 29, 2014

12FP

12FP

13FP

187,727

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

（※）

13FP

（※）

April 30, 1999

55,677

61,249

5,920

5,650

13,363

11,308167,332

2,717

46,78825,506

120,544--

1,150,838

August 14, 2015

October 1, 1994

34,121-

1,153,555

5,994.75㎡

167,332
6,467,600

12FP

13FP

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

31,431

13,441

Period-end book value

12,471.50㎡

m2 break areas etc.)

14,853

Other expenses

28,224

8,645.63㎡

18,170329

28,4766,240.96㎡

38,871.45㎡(two buildings

13,583

Trust fee
Taxes and dues

NCF

19,858.00㎡

10,565.95㎡

18,387.89㎡(including 256.15

11,037353

346

Tokorozawa City, Saitama

243,184

Repair expenses

26,107

Ichikawa City, Chiba

243,219

11,037

2,716

a Funabashi City, Chiba

187,713

Insurance premium

28,224

Yokohama City, Kanagawa

13FP

350

28,823

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

12FP

Utilities expenses

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

RC 8F

（※）

（※）

400

350

14,93913,583

510

346

4,452

742

21,392

13,448167,175

619
96,831

46,78819,983

120,386

76,848--167,175
6,420,812(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

96,831
3,696,301

88,457205,711

19,94327,47468,513

178,237-

10,06188,457
3,676,357

195,649
7,725,495

12FP

13FP

12FP

13FP

（※）

（※）

（※）

（※）

400
14,713501
12,66021,643
21
196,789

98,44627,936

15,774

168,852

82,672

33,346-

163,442
7,730,906

98,446
4,597,416

96,97237,291

15,7795,889

81,19331,402291

1,826

96,6804,581,929

35,465
1,354,832

36,017
5,899
30,11736,017
1,348,932

55

Balance of Payments of Individual Properties (9)Asset Type
Property nameAcquisition priceAppraisal value
Structure/Floors
Location
Lot area
Total floor areas
Construction completion
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee

LGC-07
Funabashi Nishiura
Logistics Ⅱ

LGC-08
Matsubushi Logistics

821 million yen
890 million yen
R 4F
Funabashi city, Chiba
3,964.00㎡
6,316.32㎡

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

12FP

13FP

（※）

LGC-09（※）

Funabashi Hi-Tech ParkⅠ Funabashi Hi-Tech ParkⅡ

2,755 million yen
3,180 million yen
RC 3F
Kita-Katsushika-gun,
Saitama
11,580.65㎡
19,833.47㎡
March 31, 1997
12FP

（※）

LGC-10

13FP

HTL-02

R&B Hotel Umeda East

Smile Hotel Namba

1,710 million yen
1,710 million yen
S 2F

702 million yen
704 million yen
S 2F

2,069 million yen
2,280 million yen
RC 9F

1,750 million yen
1,410 million yen
S 9F

Funabashi city, Chiba

Funabashi city, Chiba

Osaka City, Osaka

Osaka City, Osaka

13,420.44㎡
8,029.47㎡

8,268.35㎡
4,384.83㎡

730.26㎡
3,945.65㎡

285.28㎡
1,711.42㎡

May 19, 2003

September 5, 2001

October 20, 2000

February 6, 2008

12FP

12FP

12FP

12FP

（※）

HTL-01

13FP

（※）

（※）

13FP

（※）

（※）

13FP

62,141

65,392

17,626

62,141

65,392

22,374

17,626----

12,525

8,074

3,531

3,754

742

742

660

660

Utilities expenses

350

Insurance premium

6

Repair expenses

155

Trust fee
Taxes and dues

5,211
5,404

Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures654
28,151
4,559

28,48375,925

4,559

16,272

23,591-

NCF

28,151

Period-end book value

856,343

69,56255,45816,283

5,737

23,92359,652-

4,995

54,95324,560

5,737

2,594

53,27849,721--

28,48370,93069,562

851,7832,684,786

2,668,503(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

55,458
1,692,788

24,60849,6162,594

10,52349,216

21,966--54,953
1,687,051

24,560694,216

13FP

22,374

350
7
152
1,288
5,508
24
57,318

550
71
2,227
21
18,842

10,746

12,20922,01339,092

46,572

6,633-

11,042543-

24,608691,621

38,573
2,108,102

56,7752,097,900

18,842
1,638,728

550
70
196
2,255
22
13,871
12,2091,662
13,871
1,626,519

56

Balance of Payments of Individual Properties (10)Asset Type
Property nameAcquisition priceAppraisal value
Structure/Floors
Location
Lot area
Total floor areas
Construction completion
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee

HTL-03REMBRANDT STYLETokyo Nishikasai

12FP

12FP

13FP

HTL-05The BREAKFAST HOTEL
Fukuoka Tenjin

1,970 million yen
1,910 million yen
RC 10F
Fukuoka City, Fukuoka
543.94㎡
2,281.49㎡
February 20, 2017
12FP

HTL-06

HTL-07
HTL-08REMBRANDT STYLE
KOKO Hotel Osaka Namba
Tokyo Nishikasai Grande

GLANSIT Akihabara

2,500 million yen
2,440 million yen
SRC 10F/B1F
Chiyoda Ward, Tokyo
167.74㎡
1,081.97㎡
September 20, 2017

13FP

12FP

3,180 million yen
3,130 million yen
S 8F
Edogawa Ward, Tokyo
657.00㎡
2,755.19㎡
February 7, 2017

13FP

12FP

2,000 million yen
1,410 million yen
RC9FOsaka City, Osaka
335.31㎡
2,061.38㎡
April 7, 2017

13FP

12FP

13FP

84,60084,60080,40080,40070,00270,002-2,180

84,60084,60080,40080,40070,00270,002

-

2,180

-

-

-

-

-

-

-

-

12,10911,114

6,476

7,241

6,875

6,864

6,109

5,036

1,200

1,200

1,200

2,100

990

990

1,230

900

Insurance premium-

Repair expenses

161

Trust fee
Taxes and dues

2,406

Other expenses

85

Period-end book value

3,248 million yen
3,200 million yen
SRC B1F／9F
Yokohama City, Kanagawa
782.66㎡
4,686.09㎡
September 21, 1987

13FP

400

NCF

Best Western Yokohama

3,827 million yen
3,470 million yen
SRC B1F／9F
Edogawa Ward, Tokyo
1,418.00㎡
5,293.88㎡
March 19, 1991

Utilities expenses

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

HTL-04

7,855
72,49012,895

400
159
1,267
8,065
23
73,485

400
137
196
4,520
21
73,92313,02913,06959,59472,4903,841,456

（※）

（※）

400
-

-

91

135

188

-

5,182

4,584
22
73,15823
48,077
8,647

60,45560,854

9,103-

64,381
3,837,530

3,221,334

（※）

400

13,06973,923（※）

48,03649,012

8,647

4,643

60,08839,430--73,1583,208,265(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

48,0771,930,97865,432

63,126

4,643

10,85739,38844,368--48,036
1,922,330

49,0122,490,020

400
90
141
5,220
22
63,137

350
65
1,111
3,169
184
△ 6,109

350
64
3,213
508
△ 2,855

10,857

9,050

60,78952,26952,280△ 15,160△ 11,897

-

-

-

-

-

65,432
2,485,377

63,126
3,132,380

63,137
3,121,523△ 6,109
1,962,086

9,041△ 2,855
1,953,045

57

Balance of Payments of Individual Properties (11)

OfficeRetailResidence

Logistics

12FP

13FP

12FP

13FP

12FP

13FP

Total operating revenue
from real estate leasing

2,169,355

2,293,289

1,070,994

1,030,752

1,264,750

Lease businessrevenue

Hotel

Total

12FP

13FP

12FP

13FP

12FP

13FP

1,331,565

959,866

961,616

426,032

443,1885,890,999

6,060,414

2,009,848

2,082,212

910,391

915,324

1,204,142

1,269,760

916,647

917,181

426,032

426,716

5,467,061

5,611,196

Other lease businessrevenue

159,506

211,077

160,603

115,428

60,60861,805

43,21944,435-

16,472423,937

449,218

Total operating expenses
from real estate leasing

653,581732,424

403,809417,293

345,060

397,073

170,155

198,598

57,05351,604

1,629,660

1,796,993

Management fee

168,767

170,477

144,499

150,534

83,44489,26633,57530,915

7,749

8,319

438,037

449,514

Utilities expenses

7,797

7,875

3,061

3,100

7,695

7,650

3,850

3,350

3,200

3,200

25,60325,175

Insurance premium

137,765

153,892

109,353

120,357

22,61823,666

40,66545,7006

7

310,409343,623

Repair expenses

4,480

4,431

2,372

2,336

3,451

3,428

1,907

1,874

797

784

13,01012,855

Trust fee

75,431

110,480

11,813

20,63277,452

93,562

8,186

27,632

9,114

2,893

181,998

255,200

Taxes and dues

165,139

179,155

75,01978,41567,61386,233

78,21578,77435,15235,734421,139458,313

Other expenses

94,199106,11257,68841,91782,78593,266

3,755

10,3501,032

664

239,461

252,311

1,515,774

1,560,865

667,185

613,459

919,690

934,492

789,710763,018

368,979

391,584

4,261,339

4,263,420

237,257

249,980

77,41078,466140,608

141,387

145,073

145,522

81,89582,243682,245

697,599

1,278,516

1,310,885

589,775

534,992

779,081793,104

644,637

617,496

287,084

309,340

3,579,094

3,565,820

317,607

312,556

25,948

48,68253,24067,01016,883

33,638

11,042

9,646

424,722471,534

NCF

1,198,166

1,248,308

641,236

564,776

866,449

867,481772,827

729,380

357,936

381,937

3,836,617

3,791,886

Period-end book value

72,990,225

73,052,802

18,149,070

18,119,803

38,563,547

38,489,170

29,769,782

29,657,898

20,325,088

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

20,252,490 179,797,713 179,572,164

58

Note
P.4

P.22

P23

P.24

（Note1）The “ratio of assets in Tokyo area (entire portfolio)” is the ratio of the total acquisition price of properties in the Tokyo area to the total acquisition price of properties held as of July 31, 2022 (end of 13thFP) for “End of July 2022.
The “ratio of assets in Tokyo area (excluding suburban retail facilities)” is the total acquisition price of properties in the Tokyo area to the total acquisition price of properties held as of July 31, 2022 (end of
13th FP) less the acquisition price of the three suburban retail properties for “End of July 2022.

（Note 2）

“Ratio of mid-sized assets” is, for “End of July 2022 (13th FP)" the ratio of “mid-sized assets” to SAR’s total assets, based on acquisition prices.

（Note 3）

“Average building age” is the weighted average calculated by dividing the building age of each property held as of July 31, 2022 (end of 13th FP) by its acquisition price for “End of July 2022,” the weighted
average calculated by dividing the building age of assets by the acquisition price for “Assets Acquired.
* “Building age” refers to, except for “Urban Park Daikanyama”, the period commencing on the date of completion of construction (based on the date of completion of construction of the principal building
as registered in the registry of real estates) to July 31, 2022. As for “Urban Park Daikanyama”, which consists of two buildings, “building age” refers to the period commencing on the date of completion of
the older building and ends on July 31, 2022.

（Note 4）

“Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of the pr op erty inthe real estate appraisal report, rounded to the second decimal place.

（Note 5）“NAV” stands for Net Asset Value, and NAV per unit is calculated as follows.
NAV per unit as of July 31,2022 (End of 13th FP) = (Net assets on the balance sheet as of July 31, 2022 (End of 13th FP) – total distributions in the fiscal period ended July 2022 + total appraisal value of
assets as of July 31, 2022 (End of 13th FP) – total book value of real estate, etc. as of July 31, 2022 (End of 13th FP)) / (Investment units outstanding as of July 31, 2022 (End of 13th FP))

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

（Note 2）JCR Green Finance Framework Evaluation” is the third-party evaluation conducted by JCR regarding compatibility with the “Green Bond Principles,” “Green Loan Principles,” “Green Bond Guideline,” and“Green Loan and Sustainability Link Loan Guideline.” Under this evaluation, JCR conducts the “Greenness Evaluation” which is an evaluation of whether a project described in the green finance policy ofan issuer or borrower’s green finance policy falls under a green project, and “Evaluation of Management, Operations, and Transparency” which is an evaluation of the issuer or borrower’s management
and operations system and transparency, and then as comprehensive evaluation based on these evaluations, JCR determines the JCR Green Finance Framework Evaluation. This evaluation relates to thegreen finance policy of the issuer etc., and is not an evaluation of the greenness or management, operations, and transparency etc. of the use of funds of individual projects conducted based on suchpolicies. A separate evaluation process is required in order to grant green finance evaluations for individual bonds and borrowings. Details of the JCR Green Finance Framework Evaluation is described on
JCR’s website.

（Note 3）

“Eligibility Criteria” is satisfied when one of the following conditions is fulfilled.
Eligibility Criteria-1: Properties which have obtained or renewed certification from one of the following third-party certifying organizations, or otherwise intends to obtain or renew such certification in the
future. 1. DBJ Green Building certification: 3-star, 4-star, or 5-star. 2. BELS assessment: 3-star, 4-star, or 5-star. 3. CASBEE certification: B+ rank, A rank, or S rank.
Eligibility Criteria-2: Facilities and equipment etc. renovation works which satisfy one of the following criteria.
1. Renovation works which aim to improve one of the assessments or certifications under Eligibility Criteria-1 by at least one star or one rank.2. Facilities and equipment renovation works to be conducted
for managed real estate for the purpose of making beneficial improvements from an environmental perspective, such as energy efficiency, water consumption capacity etc. (such works where usage
volume reduction effects of 30% or higher are anticipated compared to before). 3. Installation or acquisition of equipment related to renewable energy.

（Note1）“GHG” refers to greenhouse gas. Scope 2 emissions (indirect emissions associated with the purchase of electricity, steam, or heat) indicated in this document are calculated based on market-based
factors.

（Note 2）

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

（Note 1）

The ratio of assets obtaining environmental certification is calculated by dividing the total floor area of assets which are environmentally certified as of the date of the document by the total floor area ofassets.

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

（Note 3）

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

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Note
P.24

P30

P31

P.34

P.35

（Note4）

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

（Note 5）

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

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

（Note 1）

As of the date of this document, the housing development project has been completed and is scheduled for delivery at the end of August 2022. SAR does not plan to acquire such development projects,
etc., and there is no guarantee that SAR will be able to acquire it in the future as of the date of this document.

（Note 2）

“Properties managed by Star Asia Group” refers to properties held by Star Asia Group as of April 30, 2022, and excludes properties held or to be acquired by SAR, and properties in which SAR has
preferential negotiating rights as of July 31, 2022, as well as properties held by Polaris Holdings or its consolidated companies as of the same date. As of the date of this document, SAR has no plan toacquire properties operated by Star Asia Group and there is no guarantee that SAR will be able to acquire such properties in the future. The same shall apply hereinafter.

（Note 3）

“Appraisal value” is calculated based on the appraisal values stated in the most recent appraisal reports for properties managed by Star Asia Group.

（Note 4）The property name of the “six Hotel Trusty facilities” were changed after Polaris Holdings had been entrusted with their operation.

（Note 1）

Redevelopment projects are still in the consideration stage as of the date of this document, and will not necessarily be executed（Note 2）The “Basic Agreement” refers to the basic agreement concluded with tenants for extension of Funabashi Hi-Tech Park Factory I. The same shall apply hereinafter.

（Note 3）

“Estimated leased area” refers to the leasable area in the building after extension as specified in the Basic Agreement and may be changed depending on the progress of the project.

（Note 4）

“Estimated monthly rent” refers to the expected rent for the building after extension as specified in the Basic Agreement and may be changed depending on future discussion with the tenant.

（Note 1）

“Active management” refers to the active use of such management measures as public offerings, asset replacements, mergers, and investment in mezzanine loan debt to maximize unitholder’s interest.
The same shall apply hereinafter.

（Note 2）“Mezzanine loan debt” refers to loans and other debt backed or secured by properties and provided to special purpose vehicles holding the relevant properties, and subordinated to senior debt. The same
shall apply hereinafter.

（Note 3）

SAR invested in the “Haneda Hotel Development GK No.2 Class A unsecured Bonds” (hereinafter referred to as “Mezzanine Loan Debt Investment Series 7”) in response to the redemption of the
Mezzanine Loan Debt Investment Series 1 on July 29, 2022. The Mezzanine Loan Debt Investment Series 7 is backed by the same property as the Mezzanine Loan debt Investment Series 1.

（Note 4）

“Negative goodwill” refers to the gap between the merger price calculated based on SAR’s unit price as of July 31, 2020 and the market value of Sakura Sogo REIT’s net assets value at the time of the
Merger. The same shall apply hereinafter.

（Note 1）

“abeno nini” is a sectional ownership building containing retail, hotel, and residential facilities. A part of the retail facility and the hotel, which is to be acquired by SAR, will be referred to as two different
properties. The same shall apply hereinafter.

（Note 2）

SAR classifies the investment target areas as Tokyo area, Greater Tokyo area, Osaka area, Nagoya area, Fukuoka area, Sapporo area and other government-designated cities, and determines the target
areas for each area according to the asset type (usage). The 23 wards of Tokyo, Kawasaki city and Yokohama city, where SAR believes there is high demand for office and retail facility, are designated as
the “Tokyo area.” Tokyo and three other prefectures, namely Kanagawa prefecture, Saitama prefecture and Chiba prefecture are designated as the “Tokyo area” because demand for residences, logistics
facilities, hotels and student residences is also expected outside the above areas due to their characteristics. In addition, the “Greater Tokyo area” is used for office and retail facilities in suburban Tokyo(outside the 23 wards of Tokyo) and major cities of Kanagawa prefecture (excluding Kawasaki city and Yokohama city) and of Saitama prefecture. “Osaka area” is used for residence and logistics facility inOsaka city and its neighboring areas, and is used for the other asset type in Osaka city. The same shall apply hereinafter.

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Note
P.36

P27

P37

（Note1）“Structure / floors” refers to the structure and floors of the principal building as registered in the registry of real estate, and may be different from the current status. For a sectional ownership building,
structure / floors refer to the structure and floors of the entire building to which SAR holds sectional ownership. The same shall apply hereinafter.

（Note 2）

“Total floor area” refers to, unless otherwise noted, the total floor area registered in the registry of real estate, and may be different from the actual status. The same shall apply hereinafter. For abeno nini(retail), the total floor area refers to the total floor area of the building (24,827.45m2, equivalent to the total area registered in the registry of real estates) multiplied by the ratio of exclusive space (19.6%,
see Note 3), rounded to the third decimal place. And for abeno nini (hotel), the total floor area refers to the total area of the building (24,827.45m2, equivalent to the total area registered in the registry ofreal estates) multiplied by the ratio of exclusive space (31.3%, see Note 3), rounded to the second decimal place.

（Note 3）

“Ratio of exclusive area” refers to the ratio of the exclusive space for each part of the retail facility and the hotel to be acquired by SAR, as specified in the relevant management by-laws.

（Note 4）

“Occupancy rate” refers to the ratio of the leased area to the leasable area of the acquired assets as of July 31, 2022, rounded to the first decimal place. The same shall apply hereinafter.

（Note 5）

“No. of tenants / rooms” refers for the number of tenants (excluding parking lots) to the total number of tenants in lease agreements as of April 30, 2022 regarding assets to be acquired by SAR. A tenantrenting multiple units in an asset is only counted once, and a tenant renting units in multiple properties is counted separately in the column for total tenants. In the case of pass through master leases, thetotal number of end tenants is shown. The same shall apply hereinafter. “rooms” refers to the total number of rooms in the hotel operating in abeno nini (hotel).

（Note 6）“Completion date” refers to the date of completion of construction for the principal building as registered on the registry of real estates. The same shall apply hereinafter.

（Note 7）

“Environmental certification” refers to environmental evaluation based on DBJ Green Building Certification, BELS Evaluation Certification, or CASBEE Real Estate Certification, in case the property iscertified by such organizations.

（Note 1）

“Tenant mix” contains the industry, leased area as specified in lease agreements, and the ratio of the leased area of each tenant to the sum of the leased area of all tenants in abeno nini (retail) for eachtenant as of April 30, 2022.

（Note 2）“ADR” refers to the average unit price of guest room revenue ( Average Daily Rate) and is calculated by dividing the total monthly rooms sales by the total number of guest rooms available (total numberof guest rooms occupied) in the same period. The same shall apply hereinafter.

（Note 3）

“Room Occupancy rate” refers to the ratio of the monthly total number of guest rooms sold to the total number of rooms available. The same shall apply hereinafter.

（Note 4）

“Fujisawa City Fujisawa area” refers to one of the 13 districts of Fujisawa City designated by the municipal government. The area consists of Asahi-cho, Fujisawa (south), Fujisawa1-5, Honcho1-4, a part of
Kugenuma, Kugenumashinmei1-5, Nishitomi, Nishitomi1-2, Daigiri, Daigiri1-3 and Fujigaoka1-3.

（Note 5）

“Shonan area” refers to an area specified by Kanagawa Prefecture which includes Hiratsuka City, Fujisawa City, Chigasaki City, Hadano City, Isehara City, Samukawa Town, Oiso Town, and Ninomiya
Town.

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

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