(REIT) Financial Report for Fiscal Period Ended January 31, 2020
March 13, 2020
Stock Exchange Listing: Tokyo Stock Exchange
URL: http://starasia-reit.com

REIT Securities Issuer:
Securities Code:
Representative:

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

Asset Management Company:
Representative:
Contact:

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

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

April 15, 2020
April 30, 2020

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

Yes
No(Amounts are rounded down to the nearest million yen)
1. Status of Management and Assets for Fiscal Period Ended January 31, 2020 (from August 1, 2019 to January 31, 2020)(1) Management Status(% figures are the rate of period-on-period increase (decrease))
Fiscal period
Operating revenue
Operating income
Ordinary income
Net income
million yen%
million yen%
million yen%
million yen%
Ended Jan. 2020
3,227
(14.7)
1,721(22.7)
1,494(23.9)
1,493(24.0)
Ended Jul. 2019
3,785
(1.5)
2,225
(7.5)
1,965
(5.2)
1,964
(4.2)
Net income
per unit

Fiscal period

Ratio of net income
to equity
yen
2,762
3,632

Ended Jan. 2020
Ended Jul. 2019

%
2.7
3.6

Ratio of ordinary income
to total assets
%
1.4
1.8

Ratio of ordinary income
to operating revenue
%
46.3
51.9

(2) Status of Cash Distribution
Cash distribution
Total
Cash distribution
Total
per unit
cash distribution
in excess of
cash distribution Cash distribution
Fiscal period(not including cash
(not including cash
earnings
in excess of
payout ratio
distribution in excess of distribution in excess of
per unit
earnings
earnings)
earnings)

Ratio of cash
distribution to
net assetsyenmillion yen

yenmillion yen%%

Ended Jan. 2020

2,788

1,507

-

-

100.9

2.8

Ended Jul. 2019

3,625

1,960

-

-

99.8

3.6

(Note)

Due to increase in internal reserve for the fiscal period ended July 31, 2019 and reversal of internal reserve for the fiscal
period ended January 31, 2020, total cash distribution for each period differs from net income.

(3) Financial Position
Fiscal period

Total assets
million yen
109,649
110,240

Net assets
million yen
54,29954,739Net cashprovided by (used in)operating activities
million yen
1,891
3,557

Net cashprovided by (used in)investing activities
million yen(144)(1,366)

Ended Jan. 2020
Ended Jul. 2019

Equity ratio
%
49.5
49.7

Net assets per unit
yen
100,401
101,215(4) Status of Cash Flows
Fiscal period

Ended Jan. 2020
Ended Jul. 2019－1 －Net cashprovided by (used in)financing activities
million yen(1,960)(2,770)Cash and cash equivalents
at end of period
million yen
5,471
5,684

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

Operating revenue

million yen
Ending Jul. 2020
Ending Jan. 2021

3,949
6,634

Operating income% million yen

22.4
68.0

2,064
3,226

Ordinary income% million yen

19.9
56.3

1,790
2,776

Net income% million yen

19.8
55.0

1,790
2,775

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

19.8
55.0

3,310
1,658

0
0

(Reference) Forecasted net income per unit (Expected net income ÷ expected total number of investment units issued andoutstanding at end of period)
Fiscal period ending July 31, 2020:
Expected total number of investment units issued and outstanding at end of period 540,824 units
Forecasted net income per unit
3,310 yen
Fiscal period ending January 31, 2021:
Expected total number of investment units issued and outstanding at end of period 1,674,389 units
Forecasted net income per unit
1,658 yen
(Note) SAR and Sakura Sogo REIT Investment Corporation (“SSR”) resolved to undertake an absorption-type merger (the“Merger”) to come into effect on August 1, 2020, with SAR as the surviving corporation and SSR as the dissolving
corporation, and also executed a merger agreement dated March 2, 2020 (the “Merger Agreement”). Furthermore, SAR
resolved to carry out a 2 for 1 split of the SAR investment units (the “Investment Unit Split”) at the same time as when
the Merger takes effect. The forecast for Fiscal Period Ending January 31, 2021 above assumes that the Merger and theInvestment Unit Split take effect.

* Others(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement① Changes in accounting policies accompanying amendments to accounting standards, etc.: No② Changes in accounting policies other than ①: No③ Changes in accounting estimates: No④ Retrospective restatement: No(2) Total Number of Investment Units Issued and Outstanding① Total number of investment units issued and outstanding (including own investment units) at end of period
Fiscal period ended Jan. 31, 2020
540,824 units
Fiscal period ended Jul. 31, 2019
540,824 units② Number of own investment units at end of period
Fiscal period ended Jan. 31, 2020
0 units
Fiscal period ended Jul. 31, 2019
0 units(Note) For the number of investment units serving as the basis for calculation of net income per unit, please see “Notes on Per
Unit Information” on page 23.
* Financial reports are exempt from audits by a certified public accounting or accounting firms.
* Special Note
The management status outlook and other forward-looking statements contained in this document are based on information thatare currently available and certain assumptions that are deemed reasonable by SAR. Accordingly, the actual management status, etc.
may differ materially due to various factors. In addition, the forecast figures are the current figures calculated under the assumptions
described in “Assumptions Underlying Operating Results Forecasts for Fiscal Period Ending July 31, 2020 and Fiscal Period Ending
January 31, 2021” on pages 3-5. Accordingly, the actual operating revenue, operating income, ordinary income, net income, cash
distribution per unit (not including cash distribution in excess of earnings) and cash distribution in excess of earnings per unit mayvary due to acquisition/disposition of real estate, etc., trends of the real estate market, etc., fluctuations in interest rates or otherchanges in the circumstances surrounding SAR, etc. in the future. In addition, the forecast is not a guarantee of the amount of cash
distribution.

－

2 －Assumptions Underlying Operating Results Forecasts for
Fiscal Period Ending July 31, 2020 and Fiscal Period Ending January 31, 2021
Item

Calculation period

Assets undermanagement

Assumptions➢ Fiscal period ending July 31, 2020: February 1, 2020 – July 31, 2020 (182 days)➢ Fiscal period ending January 31, 2021: August 1, 2020 – January 31, 2021 (184 days)➢ It is assumed that the Merger will take effect on August 1, 2020, by having satisfied conditions
precedent, such as the Merger being approved at the general meeting of unitholders of SSR scheduledon March 30, 2020 and the general meeting of unitholders of SAR scheduled on March 31, 2020.
➢ It is assumed that the Accounting Standard for Business Combinations (ASBJ Statement No. 21, revised
January 16, 2019) (the “Business Combinations Accounting Standard”) will be applied to the Merger, andthe Merger will be accounted for under the purchase method, with SAR as the acquiring entity and SSR
as the acquired entity.
➢ It is assumed that, in addition to the assets held by SAR as of the date of this report (36 real estate trust
beneficiary interests, 4 mezzanine loan debts, and 2 equity investments in silent partnerships(collectively, “Currently Held Assets”, with those in the form of real estate trust beneficiary interests
being referred to as “Currently Held Assets (Real Estate)”, those in the form of mezzanine loan debts
being referred to as “Currently Held Assets (Mezzanine)”, and those in the form of equity investments insilent partnerships being referred as “Currently Held Assets (Silent Partnership)”)), (i) as a result of the
Merger, SAR will assume the real estate trust beneficiary interests currently held by SSR (comprising a
total of 18 properties) (the “Assets Planned to be Succeeded”), and (ii) SAR will sell the real estate trust
beneficiary interest in respect of Alphabet Seven which is currently owned by SAR (the “Asset Planned
to be Transferred”) as described in <Transfer> below.
<Transfer>
Name of property: Alphabet Seven
Scheduled date of transfer: July 1, 2020
40% of the quasi-co-ownership interests
December 1, 2020
60% of the quasi-co-ownership interests➢ It is assumed that there will be no change in Assets under management (new property acquisitions,sales of the existing properties, etc.) other than Assets Planned to be Succeeded and Asset Planned tobe Transferred through to the end of the fiscal period ending January 31, 2021.
➢ However, in reality Assets under management may change.

Operating revenues

Operating expenses➢ Rent revenues from Currently Held Assets (Real Estates) and Assets Planned to be Succeeded are
calculated based on the rent stated in the lease agreements that are effective as of the date of this report,
taking into consideration factors such as the market movement. It is also assumed that there will be no
arrears or non-payment of rents by tenants.
➢ Interest revenues or dividend revenues from Currently Held Assets (Mezzanine) are calculated based onoutlines, trust agreements or loan agreements which define contents of Currently Held Assets(Mezzanine) that are effective as of the date of this report. It is also assumed that no interest payments
or dividend payments will be unpaid.
➢ Dividend revenues from Currently Held Assets (Silent Partnership) are calculated based on the assumptionthat the real estate underlying the cash flow will maintain stable operations.
➢ Gains on sale of Asset Planned to be Transferred are expected to be 642 million yen for the fiscal period
ending July 31, 2020 and 970 million yen for the fiscal period ending January 31, 2021.
➢ Among expenses related to rent business which are the main operating expenses, expenses other thandepreciation are calculated on the basis of historical performance data, by reflecting variable expense
factors.
➢ Fixed property taxes, city planning taxes and other public charges are expected to be 240 million yen in
the fiscal period ending July 31, 2020 and to be 431 million yen in the fiscal period ending January 31,
2021. With respect to real estate trust beneficiary interests, fixed property taxes, city planning taxes andother public charges in the fiscal year will be settled with the seller on a pro rata basis based on thenumber of days of ownership at the time of acquisition of the properties. However, as SAR includes such
settlement amounts in the acquisition cost, fixed property taxes, city planning taxes and other publiccharges for fiscal year 2020 related to the acquisition of Urban Park Ichigao and Urban Park Gyotoku in
March 2020 will not be recorded as expenses for the fiscal period ending July 31, 2020 and January 31,
2021, fixed property taxes, city planning taxes and other public charges for these properties are expected
to be recorded as expenses from the fiscal period ending July 31, 2021.
➢ For expenditures for repair and maintenance of buildings, based on the repair and maintenance plan
prepared by Star Asia Investment Management Co., Ltd, the asset manager for SAR and SSR (the “AssetManager”), 99 million yen is expected for the fiscal period ending July 31, 2020 and 147 million yen is
expected for the fiscal period ending January 31, 2021. However, the actual expenditures for repair andmaintenance for the fiscal periods could differ significantly from the estimated amounts, as urgent
expenditures due to damage to buildings may arise due to unexpected factors, and because generally
－

3 －

Item

Assumptions
speaking such expenditure amounts generally tend to vary significantly from year to year, and do not arise
regularly.
➢ Depreciation is calculated using the straight-line method including for ancillary costs and is expected to
be 436 million yen for the fiscal period ending July 31, 2020 and 639 million yen for the fiscal period ending
January 31, 2021.
➢ Operating expenses other than rent business related expenses are expected to be 645 million yen in thefiscal period ending July 31, 2020 and 1,160 million yen in the fiscal period ending January 31, 2021.
➢ Operating expenses other than rent business related expenses mentioned above include expected
merger-related temporary expenses of 269 million yen for the fiscal period ending July 31, 2020 and 538
million yen (including a merger fee of 315 million yen to be paid by SAR to the Asset Manager for the fiscal
period ending January 31, 2021.

NOI(Net Operating
Income)Non-operating
expenses

Goodwill, negative
goodwill➢ Total NOI of the entire portfolio is expected to be 2,473 million yen for the fiscal period ending July 31,2020 and 4,032 million yen for the fiscal period ending January 31, 2021.
➢ NOI is calculated by using the following calculation method.
NOI = rent revenue – rent expenses (excluding depreciation)➢ The sum of interest expenses and other financing-related expenses for the new borrowing describedunder “Debt Financing” below is expected to be 273 million yen in the fiscal period ending July 31, 2020
and 449 million yen in the period ending January 31, 2021.
➢ Within other financing-related expenses noted above, temporary expenses to arise in relation to new
borrowings described under “Debt Financing” below and refinancings of 37 million yen for the fiscal
period ending July 31, 2020 and 51 million yen for the fiscal period ending January 31, 2021 are expected.
➢ The Merger is expected to generate goodwill or negative goodwill: however, as of the date of this report,
SAR’s investment unit price as of the date of consummation of the Merger which will form the basis forcalculating such goodwill or negative good will is not known, and it is not certain whether goodwill or
negative goodwill will be generated, and the amount of such goodwill or negative goodwill is also
unknown. Therefore, it has been assumed that no goodwill or negative goodwill will be generated, andthese have not been factored into the figures in the forecast. A general estimation of goodwill or negative
goodwill, and any revisions to the operating results forecast and distributions forecast based on such
estimations, are scheduled to be promptly announced when confirmed, on or after August 1, 2020 whichis the effective date of the Merger.
➢ If the Merger generates goodwill, the goodwill will be recorded as an asset and amortized over 20 years
using the straight-line method in accordance with the Business Combinations Accounting Standard. If the
Merger generates negative goodwill, the gain on negative goodwill will be recorded in lump sum as
extraordinary income in the fiscal period ending January 31, 2021 (the 10th fiscal period).
➢ With respect to SSR which is the acquired corporation under the Business Combinations AccountingStandard, total accepted assets are expected to be 68,422 million yen, and total assumed liabilities are
expected to be 33,857 million yen.

Debt financing➢ As of the date of this report, SAR has outstanding debt of 55,040 million yen, however, it is assumed thatSAR will repay 720 million yen and 1,080 million yen of the debt balance in the fiscal period ending July
31, 2020 and the fiscal period ending January 31, 2021, respectively, using proceeds from the sale of theAsset Planned to be Transferred.
➢ As of July 31, 2020, it is anticipated that SSR will have outstanding debt of 29,200 million yen, and it isassumed that SAR after effectuation of the Merger will succeed to the entire amount of such outstandingdebt.
➢ It is assumed that borrowings with repayment dates falling in the fiscal period ending July 31, 2020 andthe fiscal period ending January 31, 2021 will be fully refinanced.
➢ It is assumed that there will be no new borrowings or repayment of existing borrowings, including early
repayment, up to the end of the fiscal period ending January 31, 2021, other than those described above.

Investment units➢ It is assumed that, in addition to SAR’s issued and outstanding investment units of 540,824 units as of thedate of this report, SAR will, upon the Merger, conduct a 2 for 1 investment unit split (resulting in
1,081,648 units in total), and furthermore, together with the planned issue of 592,741 new investment
units by SAR upon the Merger, the total number of issued and outstanding investment units will be
1,674,389 units.
➢ As of the date of this report, the number of new investment units to be issued by SAR upon the Merger
has not yet been finalized, and the number may change due to treatment of fractional amounts, etc. The
number of such newly issued investment units will be promptly announced when confirmed, on or after
August 1, 2020, which is the effective date of the Merger.
➢ It is assumed that there will be no change in the total number of investment units issued and outstanding
other than the above up to the end of the fiscal period ending January 31, 2021.

－

4 －

Item

Assumptions➢ SAR calculates its distribution per unit (excluding distributions in excess of earnings) pursuant to its cash
distributions policy as set forth in its Articles of Incorporation.
➢ SAR conducts derivative transactions (interest rate swaps). It is assumed that deferred hedge losses as a
net asset deduction item (i.e., the items set forth in Article 2, Item 30, (b) of “Ordinances on Accountingof Investment Corporation”) will not be incurred in the fiscal periods ending July 31, 2020 and January 31,
2021, and the distribution per unit (excluding distributions in excess of earnings) has been calculated on
the assumption that changes in the net asset deduction item have no impact on distribution per unit
Cash distributions(excluding distributions in excess of earnings).
per unit➢ Distribution per unit (excluding distributions in excess of earnings) may change due to various factors,(not including
including changes in the managed assets, changes in leasing income caused by changes in tenants, andcash distribution
unforeseen repairs. In addition, distribution per unit (excluding distributions in excess of earnings) may
in excess of earnings)
be affected by changes in the net asset deduction item.
➢ SAR expects that in cases where a gain on negative goodwill described in the “Goodwill, negative goodwill”
is recognized upon the Merger, SAR would secure the full amount of the retained earnings as well as
satisfy the tax requirements for conduit status, by setting aside a reserve for temporary difference
adjustment. SAR plans to use the retained earnings mainly to mitigate any negative impact on
distributions caused by temporary decrease in income or incurred expense, and to avoid the occurrenceof corporate and other tax expenses as a result of any inconsistencies between tax and accounting,
beginning from the fiscal period ending January 31, 2021 (the 10th fiscal period).
➢ Upon the Merger, if any goodwill is generated as described under “Goodwill, negative goodwill” above,or any inconsistencies between tax and accounting in excess of income arise, SAR plans to utilize retained
earnings. However, if there are insufficient retained earnings, it plans to avoid generation of corporate
Cash distributions
and other tax expenses by making distribution in excess of earnings related to the allowance forin excess of earnings
temporary difference adjustment. As of the date of this report, SAR has no plans to make any allowance
per unit
for temporary difference adjustment other than for the above purpose.
➢ Furthermore, as of the date of this report, SAR has no plans to make distributions in excess of earnings
that fall under capital distribution by decreasing investment capital, etc. prescribed under taxation laws.

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

－

5 －

3.

Financial Statements(1) Balance Sheet(Unit: thousand yen)
7th fiscal period(As of July 31, 2019)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Lease and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets

1,743,631
3,940,970
55,906
132,744
11,298－6 －8th fiscal period(As of January 31, 2020)

5,884,550

1,622,851
3,848,378
45,608112,436
8,689
5,637,964

33,118,834(2,106,616)
31,012,218
15,784(1,893)
13,89046,680(7,236)39,44433,338(8,460)24,87768,602,052
99,692,483

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

3,459,138
3,459,138

3,459,138
3,459,138

723,220300,000
168,174
10,962
2,024
1,204,382
104,356,004
110,240,555

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

(Unit: thousand yen)
7th fiscal period(As of July 31, 2019)
Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets－

7 －8th fiscal period(As of January 31, 2020)

254,637
7,300,000
293,558
10,030605
199,468
517,389
30,5528,606,243

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

44,280,000
6,669
2,478,925
128,960
46,894,554
55,500,798

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

52,745,966

52,745,966

2,115,855
2,115,855
54,861,822

1,649,263
1,649,263
54,395,229(122,065)(122,065)*1 54,739,757
110,240,555(95,806)(95,806)*1 54,299,423
109,649,249

(2) Statement of Income(Unit: thousand yen)
7th fiscal period
From: February 1, 2019
To: July 31, 2019
Operating revenue
Lease business revenue
Other lease business revenue
Gain on sales of real estate property
Other revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody and administrative service fees
Directors’ compensations
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of unpaid distribution
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

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

3,092,125242,455*2 422,504
28,185
3,785,271*1

1,214,656
251,121
23,5832,400
67,5481,559,310
2,225,961

*1

*1

*1

*1

－

8 －

*1

2,988,424
212,244
27,1603,227,829
1,189,614
226,759
23,7572,400
63,8881,506,419
1,721,410

30
883
913

27
997
1
1,026

155,935
105,827
261,763
1,965,111
1,965,111
605
605
1,964,506
151,349
2,115,855

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

(3) Statement of Unitholders’ Equity
7th fiscal period (from February 1, 2019 to July 31, 2019)(Unit: thousand yen)
Valuation and translation
adjustments

Unitholders’ equity
SurplusTotal
net assets

Total
surplus

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

2,163,215

2,163,215

54,909,181

54,839,877

Dividends from surplus(2,011,865)(2,011,865)(2,011,865)(2,011,865)

Net income

1,964,506

1,964,506

1,964,506

1,964,506

Unappropriatedretainedearnings(undisposed
loss)

Unitholders’capitalBalance at beginning of the

52,745,966

period(69,303)(69,303)

Changes of items during theperiodNet changes of items other-than unitholders’ equity
Total changes of items during*1(52,761)(52,761)-(47,359)(47,359)(47,359)(52,761)(52,761)(100,120)

52,745,966

2,115,855

2,115,855

54,861,822(122,065)(122,065)

54,739,757

the period
Balance at end of the period(52,761)

8th fiscal period (from August 1, 2019 to January 31, 2020)(Unit: thousand yen)
Valuation and translation
adjustments

Unitholders’ equity
SurplusTotal
net assets

Total
surplus

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

2,115,855

2,115,855

54,861,822

54,739,757

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

Net income

1,493,894

1,493,894

1,493,894

1,493,894

Unappropriatedretainedearnings(undisposed
loss)

Unitholders’capitalBalance at beginning of the

52,745,966

period(122,065)(122,065)

Changes of items during theperiodNet changes of items otherthan unitholders’ equity
Total changes of items during
the period
Balance at end of the period*126,25926,25926,259-(466,592)(466,592)(466,592)

26,25926,259(440,333)

52,745,966

1,649,263

1,649,263

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

54,299,423－

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

Unappropriated retained earnings

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

7th fiscal period
From: February 1, 2019
To: July 31, 20198th fiscal period
From: August 1, 2019
To: January 31, 2020

2,115,855,829

1,649,263,334

1,960,487,000

1,507,817,312[3,625]
1,960,487,000[2,788]1,507,817,312[3,625][2,788]155,368,829

141,446,002

Method of calculation of amount of cash distributions
7th fiscal period (from February 1, 2019 to July 31, 2019):
Pursuant to the cash distribution policy provided in Article 35, Paragraph 1 of SAR’s Articles of Incorporation, SAR shall distribute inexcess of the amount equivalent to 90% of the amount of distributable earnings of SAR as defined in Article 67-15, Paragraph 1 of
the Act on Special Measures Concerning Taxation. In accordance with such policy, concerning cash distribution of earnings (notincluding cash distribution in excess of earnings), the decision was made to distribute 1,960,487,000 yen in total cash distribution
which is more than the amount necessary to minimize tax expenses such as corporate tax etc., and which is an integral multiple ofthe total number of issued investment units of 540,824.
8th fiscal period (from August 1, 2019 to January 31, 2020):
Pursuant to the cash distribution policy provided in Article 35, Paragraph 1 of SAR’s Articles of Incorporation, SAR shall distribute inexcess of the amount equivalent to 90% of the amount of distributable earnings of SAR as defined in Article 67-15, Paragraph 1 of
the Act on Special Measures Concerning Taxation. In accordance with such policy, concerning cash distribution of earnings (notincluding cash distribution in excess of earnings), the decision was made to distribute 1,507,817,312 yen, an amount equivalent tothe sum of net income plus the amount equal to a portion of rent holidays of logistic facilities, and an integral multiple of the total
number of issued investment units of 540,824 in total cash distribution.

－

10

－

(5) Statement of Cash Flows(Unit: thousand yen)
7th fiscal period
From: February 1, 2019
To: July 31, 2019
Cash flows from operating activities
Income before income taxes
Depreciation
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes refund receivable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Decrease from sales of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Repayments of tenant leasehold and security deposits
Proceeds from tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits in trust
Proceeds from tenant leasehold and security deposits in trust
Purchase of investment securities
Proceeds from redemption of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Decrease in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

－

11

－

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

1,965,111
415,829(30)
155,935(3,338)
184,863
199,468(12,060)(7,223)(51,642)(12,905)(106,933)
994,157
17,477
3,738,710
30(155,922)(25,080)
3,557,738

1,494,499
420,178(27)
165,266
10,297(163,882)
20,30846,67786,456(21,210)
13,802(16,850)
2,055,515
27(163,464)(903)
1,891,175(1,234,988)(72)
72(172,112)
136,218(101,375)
5,938(1,366,319)(136,901)(141)
211(105,199)
86,020
11,639100(144,270)

700,000(1,160,000)
8,000,000(8,300,000)(2,010,691)(2,770,691)(579,272)
6,263,874*1 5,684,601(1,960,276)(1,960,276)(213,372)
5,684,601*1 5,471,229

(6) Notes on the Going Concern Assumption
Not applicable.
(7) Notes on Matters Concerning Significant Accounting Policies
1. Evaluation standards
Other securities:
and methods ofThose with fair value
valuation of securities
Fair value method or market value method (Variances are directly included in net assets.)Those with no fair value
Cost method through moving-average method
As for silent partnership equity interests, the method of incorporating the amount equivalent toequity interests corresponding to net amount of gain or loss from silent partnership is adopted.
2. Method of
Property, plant and equipment (including trust assets)
depreciation of
The straight-line method is adopted. The useful life of primary property, plant and equipment is as follows:
non-current assets
Buildings
5-69 years
Structures
10-30 years
Machinery and equipment
10 years
Tools, furniture and fixtures 3-15 years
3. Standards for
Accounting for fixed property tax, etc.
revenue and expense
Accounting for fixed property tax, city planning tax, depreciable asset tax, etc. (“fixed property tax,
recognitionetc.”) on real estate or beneficiary interest in trust for real estate held is that of the tax amountassessed and determined, and the amount corresponding to the concerned calculation period isexpensed as expenses related to rent business.
The amount equivalent to fixed property tax, etc. in the initial fiscal year borne by SAR uponacquisition of real estate or beneficiary interest in trust for real estate is not recognized as expenses
but included in the cost of acquisition of the concerned real estate, etc. In the fiscal period underreview, there is no amount equivalent to fixed property tax, etc. included in the cost of acquisition ofreal estate, etc.
4. Method of(1) Hedge accounting approachhedge accounting
Deferral hedge accounting is adopted.
(2) Hedging instruments and hedged items
Hedging instruments:
Interest rate swap transaction
Hedged items: Interest on loans(3) Hedging policy
SAR conducts derivative transactions for the purpose of hedging the risks provided in its Articles
of Incorporation pursuant to rules and regulations.
(4) Method of assessing the effectiveness of hedging
The effectiveness of hedging is assessed by comparing the cumulative change in cash flows of
the hedging instruments with the cumulative change in cash flows of the hedged items andverifying the ratio of the amount of change in the two.
5. Scope of funds
The funds (cash and cash equivalents) in the statement of cash flows comprise cash on hand and cashin the statement ofin trust, demand deposits and deposits in trust, and short-term investments with a maturity of three
cash flows (cash andmonths or less from the date of acquisition that are readily convertible to cash and that are subject
cash equivalents)
to an insignificant risk of changes in value.
6. Other significant(1) Accounting for beneficiary interest in trust for real estate, etc.
matters serving as theConcerning beneficiary interest in trust for real estate, etc. held, all accounts of assets andbasis for preparation
liabilities within trust assets as well as all accounts of revenue and expenses from the trust assetsof financial statements
are recognized in the relevant account item of the balance sheet and the statement of income.
The following material items of the trust assets recognized in the relevant account item areseparately listed on the balance sheet.
① Cash and deposits in trust② Buildings in trust; Structures in trust; Machinery and equipment in trust; Tools, furniture andfixtures in trust; Land in trust③ Leasehold rights in trust④ Tenant leasehold and security deposits in trust(2) Accounting for consumption tax, etc.
Taxes are excluded from the transaction amounts in accounting for consumption tax and local
consumption tax.
Non-deductible consumption tax on acquisition of assets is included in the acquisition cost ofeach asset.

－

12

－

(8) Notes to the Financial Statements[Notes to the Balance Sheet]*1 Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Unit: thousand yen)
7th fiscal period(As of July 31, 2019)8th fiscal period(As of January 31, 2020)

50,00050,000[Notes to the Statement of Income]*1 Breakdown of operating income (loss) from real estate leasing(Unit: thousand yen)
7th fiscal period
From: February 1, 2019
To: July 31, 20198th fiscal period
From: August 1, 2019
To: January 31, 2020

2,718,786

2,617,584

266,210
94,978262,460
95,729A. Operating revenue from real estate leasing
Lease business revenue
Rental revenue
Common area maintenance revenue
Parking revenue
Facility use revenue
Other rental revenue

9,924
2,225

3,092,125

10,6072,041

2,988,424

165,375
77,080242,455

177,361
34,883

212,244

Other lease business revenue
Utilities reimbursement
Other revenue

3,334,581

Total operating revenue from real estate leasing

3,200,669

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

148,449
179,347

153,423
176,939

Taxes and dues
Repair expenses

238,101
114,653

238,044
82,084

Trust fee
Insurance premium

13,1294,727

13,1504,773

Depreciation
Other expenses

415,829
100,418

420,178
101,019

Total operating expenses from real estate leasing
C. Operating income (loss) from real estate leasing[A－B]*2 Breakdown of gain on sales of real estate property
7th fiscal period (from February 1, 2019 to July 31, 2019)
Hakata-eki Higashi 113 Building (51% of quasi(unit: thousand yen)co-ownership interest)
Real Estate Sale Income
Real Estate Sale Cost

1,453,500
994,157

Other Real Estate Sale Expenses

36,837

Gain on Real Estate Sale

422,504－13－

1,214,656

1,189,614

2,119,924

2,011,055

8th fiscal period (from August 1, 2019 to January 31, 2020)
Not applicable.
[Notes to the Statement of Unitholders’ Equity]*1 Total number of investment units authorized and total number of investment units issued and outstanding

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

7th fiscal period
From: February 1, 2019
To: July 31, 20198th fiscal period
From: August 1, 2019
To: January 31, 2020

10,000,000 units

10,000,000 units

540,824 units

540,824 units[Notes to the Statement of Cash Flows]*1 Reconciliation of cash and cash equivalents at end of period to the amount of balance sheet items(Unit: thousand yen)
7th fiscal period
From: February 1, 2019
To: July 31, 20198th fiscal period
From: August 1, 2019
To: January 31, 2020

Cash and deposits

1,743,631

1,622,851

Cash and deposits in trust

3,940,970

3,848,378

Cash and cash equivalents

5,684,601

5,471,229[Notes on Lease Transactions]Operating leases (as lessor)
Future minimum lease payments(Unit: thousand yen)
7th fiscal period
As of Jul. 31, 20198th fiscal period
As of Jan. 31, 2020

Not later than 1 year

2,823,356

2,723,855

Later than 1 year

8,278,730

7,898,637

11,102,086

10,622,493

Total

－

14

－

[Notes on Financial Instruments]
1.

Matters concerning status of financial instruments(1) Policy for handling financial instruments
SAR shall procure funds to allocate to acquisition of real estate related assets, repayment of interest-bearing liabilities,
etc. through mainly issuance of investment units, borrowing from financial institutions, issuance of investment
corporation bonds, etc. Upon procuring funds through interest-bearing liabilities, due consideration shall be given tofund procurement agility and financial stability.
(2) Description of financial instruments and associated risks, and risk management system
The funds procured through loans, which shall be for the purpose of mainly acquisition of assets, are exposed to liquidity
risk until the repayment date, but the concerned risks are managed by taking such measures as lengthening the
procurement periods and staggering the maturities. In addition, loans with floating interest rates are exposed to interest
rate fluctuation risk, but derivative transactions (interest rate swap transactions) are utilized as hedging instruments to,in effect, convert interest rates to fixed rates in order to mitigate that risk. For the hedge accounting approach, hedging
instruments, hedged items, hedging policy and method of assessing the effectiveness of hedging, please refer to “4.
Method of hedge accounting” described under “Notes on Matters Concerning Significant Accounting Policies” earlier inthis document.
(3) Supplementary explanation to matters concerning fair value, etc. of financial instruments
Not applicable.

2.

Matters concerning fair value, etc. of financial instruments
The carrying amount and fair value as of July 31, 2019, and the amount of difference between these, are as follows.
Financial instruments for which estimation of fair value is recognized to be extremely difficult are not included. Pleaserefer to “Note 2”.
(Unit: thousand yen)
Carrying amount

Fair value

Amount of difference(1) Cash and deposits

1,743,631

1,743,631-(2) Cash and deposits in trust

3,940,970

3,940,970-(3) Investment securities

525,370

525,370-(4) Long-term loans receivable

300,000

300,000-

6,509,971

6,509,971-(5) Current portion of long-term loans payable

7,300,000

7,300,000-(6) Long-term loans payable

44,280,000

44,280,000-

51,580,000

51,580,000-(122,065)(122,065)-

Assets total

Liabilities total(7) Derivative transactions (*)

－

15

－

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

Fair value

Amount of difference(1) Cash and deposits

1,622,851

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

3,848,378

3,848,378-(3) Investment securities

524,740

524,540-(4) Long-term loans receivable

300,000

300,000-

6,295,969

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

11,300,000

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

40,280,000

40,280,000-

51,580,000

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

Assets total

Liabilities total(7) Derivative transactions (*)(*)

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

(Note 1) Method of calculation of the fair value of financial instruments(1) Cash and deposits; (2) Cash and deposits in trust; (5) Current portion of long-term loans payable
Since these are settled in a short period of time, the fair value is approximately the same as the book value, and thus stated at book value.
(3) Investment securities; (4) Long-term loans receivable;
Since interest income etc. from mezzanine loan debt are based on floating interest rates, the fair value is approximately the same as the bookvalue, and thus stated at book value.
(6) Long-term loans payables
Since long-term loans payable are all with floating interest rates under terms and conditions that interest rates be reviewed every set periodof time, the fair value is approximately the same as the book value, and thus stated at that value.
(7) Derivative transactions
Please refer to “Notes on Derivative Transactions” later in this document.
(Note 2) Financial instruments for which estimation of fair value is recognized to be difficult(Unit: thousand yen)
7th fiscal period
As of July 31, 2019

Category
Tenant leasehold and security deposits (*1)
Tenant leasehold and security deposits in trust (*1)

8th fiscal period
As of January 31, 2020

6,669

6,718

2,478,925

2,459,766

197,850

187,172

Investment securities (*2)(*1) Tenant leasehold and security deposits and tenant leasehold and security deposits in trust are not subject to valuation at fair value, because areasonable estimation of cash flows is recognized to be extremely difficult due to there being no market price and difficulty of calculating theactual deposit period from when lessees move in to when they move out.
(*2) Fair values of silent partnership equity interest in investment securities are not subject to disclosure of fair value as they have no market value
and their fair values are extremely difficult to recognize.
(Note 3) Amount of redemption of monetary claims scheduled to be due after the date of settlement of accounts
7th fiscal period (as of July 31, 2019)(Unit: thousand yen)
Later than 1 year Later than 2 years Later than 3 years Later than 4 years
and not later than and not later than and not later than and not later than Later than 5 years
2 years
3 years
4 years
5 years

Not later than
1 yearCash and deposits

1,743,631

-

-

-

-

-

Cash and deposits in trust

3,940,970

-

-

-

-

-

Investment securities

-

-

-

-

525,370-

Long-term loans
receivable

-

-

-

-

300,000-

Total

5,684,601---

825,370

-

－

16

－

8th fiscal period (as of January 31, 2020)(Unit: thousand yen)
Later than 1 year Later than 2 years Later than 3 years Later than 4 years
and not later than and not later than and not later than and not later than Later than 5 years
2 years
3 years
4 years
5 years

Not later than
1 yearCash and deposits

1,622,851

-

-

-

-

-

Cash and deposits in trust

3,848,378

-

-

-

-

-

Investment securities

-

-

-

524,740--

Long-term loans
receivable

-

-

-

300,000

-

-

Total

5,471,229--

824,740--(Note 4) Amount of repayment of loans scheduled to be due after the date of settlement of accounts
7th fiscal period (as of July 31, 2019)
Not later than
1 year(Unit: thousand yen)
Later than 1 year Later than 2 years Later than 3 years Later than 4 years
and not later than and not later than and not later than and not later than Later than 5 years
2 years
3 years
4 years
5 years

Long-term loans payable

7,300,000

11,300,000

15,450,000

4,690,000

12,840,000

-

Total

7,300,000

11,300,000

15,450,000

4,690,000

12,840,000-

8th fiscal period (as of January 31, 2020)
Not later than
1 year(Unit: thousand yen)
Later than 1 year Later than 2 years Later than 3 years Later than 4 years
and not later than and not later than and not later than and not later than Later than 5 years
2 years
3 years
4 years
5 years

Long-term loans payable

11,300,000

14,600,000

8,150,000

9,530,000

8,000,000

-

Total

11,300,000

14,600,000

8,150,000

9,530,000

8,000,000-[Notes on Securities]
Other securities
7th fiscal period (as of July 31, 2019)（Unit: thousand yen）
Category

Book value(1) Stocks

Acquisition cost

Difference

-

-

-

-

-

-

(2) Bonds① Government bonds,
Book value greatermunicipal bonds, etc.

than acquisition cost

② Corporate bonds

-

-

-

③ Others

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

400,000

400,000

-

-

-

-

125,370

125,370-

525,370

525,370-

525,370

525,370-(3) Others
Subtotal(1) Stocks(2) Bonds
Book value less thanor equal toacquisition cost

① Government bonds,
municipal bonds, etc.
② Corporate bonds③ Others(3) Others
Subtotal
Total(*) Silent partnership equity interests (book value: 197,850 thousand yen) are not included above because they have no market
value and their fair values are extremely difficult to recognize.
8th fiscal period (as of January 31, 2020)
－

17

－

（Unit: thousand yen）
Category

Book value

Acquisition cost(1) Stocks

Difference

-

-

-

-

-

-

(2) Bonds① Government bonds,
Book value greatermunicipal bonds, etc.

than acquisition cost

② Corporate bonds

-

-

-

③ Others

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

400,000

400,000

-

-

-

-

124,740

124,740-

524,740

524,740-

524,740

524,740-(3) Others
Subtotal(1) Stocks(2) Bonds
Book value less thanor equal toacquisition cost

① Government bonds,
municipal bonds, etc.
② Corporate bonds③ Others(3) Others
Subtotal
Total(*) Silent partnership equity interests (book value: 187,172 thousand yen) are not included in above because they have nomarket value and their fair values are extremely difficult to recognize.
[Notes on Derivative Transactions]
1. Derivative transactions to which hedge accounting is not applied
7th fiscal period (as of July 31, 2019)
Not applicable.
8th fiscal period (as of January 31, 2020)
Not applicable.
2. Derivative transactions to which hedge accounting is applied
7th fiscal period (as of July 31, 2019)
The contract amount or the amount equivalent to the principal provided in the contract as of the date of settlement ofaccounts for each hedge accounting approach is as follows.
(Unit: thousand yen)Hedge
accounting
approachPrinciple
method ofaccounting

Type, etc. of derivative transactionMainhedged item

Interest rate swap transaction(floating receivable; fixed payable)

Long-termloans payable

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

36,980,000

Fair value(Note 2)

(122,065)(Note 1) Contract amount, etc. is based on notional principal.
(Note 2) Fair value is calculated based on the price quoted by lending financial institutions, etc.

8th fiscal period (as of January 31, 2020)
The following is the contract amount or the amount equivalent to the principal provided in the contract as of the date ofsettlement of accounts for each hedge accounting approach.
(Unit: thousand yen)Hedge
accounting
approach

Type, etc. of derivative transactionMainhedged item

Principle
accounting

Interest rate swap transaction(floating receivable; fixed payable)

Long-termloans payable
－

18

－

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

32,980,000

Fair value(Note 2)
(95,806)

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

[Notes on Retirement Benefits]
7th fiscal period (as of July 31, 2019)
Not applicable.
8th fiscal period (as of January 31, 2020)
Not applicable.
[Notes on Tax-Effect Accounting]
1. Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities(Unit: thousand yen)
7th fiscal period
As of July 31, 20198th fiscal period
As of January 31, 2020

Deferred tax assets
Acquisition cost of securities
Accounts payable

1,359
204

1,359
-

Deferred gains or losses on hedges

38,40130,140Subtotal

39,96531,499Valuation allowance(39,965)(31,499)

-

-

-

-

Total
Deferred tax assets, net
2.

Breakdown of major components that caused any significant differences between the statutory tax rate and the effective
income tax rate after application of tax-effect accounting(Unit: %)7th fiscal period
As of July 31, 2019
Statutory tax rate
[Adjustments]

31.51

31.51

Deductible distributions payable
Others(31.43)(0.05)(31.50)
0.03

0.03

0.04

Effective income tax rate
after application of tax-effect accounting[Notes on Share of Profit or Loss of Entities Accounted for Using Equity Method, etc.]
7th fiscal period (as of July 31, 2019)
Not applicable.
8th fiscal period (as of January 31, 2020)
Not applicable.
[Notes on Related-Party Transactions]
1.

Parent company, major corporate unitholders, etc.
7th fiscal period (from February 1, 2019 to July 31, 2019)
Not applicable.
8th fiscal period (from August 1, 2019 to January 31, 2020)
Not applicable.

2.

8th fiscal period
As of January 31, 2020

Affiliated companies, etc.
7th fiscal period (from February 1, 2019 to July 31, 2019)
－

19

－

Not applicable.
8th fiscal period (from August 1, 2019 to January 31, 2020)
Not applicable.
3.

Fellow subsidiaries, etc.
7th fiscal period (from February 1, 2019 to July 31, 2019)
Not applicable.
8th fiscal period (from August 1, 2019 to January 31, 2020)
Not applicable.

4.

Directors, major individual unitholders, etc.
7th fiscal period (from February 1, 2019 to July 31, 2019)

Type

Name ofCapital stock

Description

company,orof business

investmentsorin capital

occupation

etc. or

Address

personPercentage
of votingrights, etc.
held by (in)Director,

Director of

or close

SAR, andrelativeof

Atsushi

－

－

Kato

amountAccounttransaction(thousand

item

yen)

end ofperiod(thousandyen)

Payment of
asset

President

0.01%

and CEO of

director

Description of

SAR

Executive

Balance atTransaction

management
fee to the
Asset Manager

the Asset

271,756

Accounts(Note 2)

payable –(Note 3)others271,211(Note 2)

(Note 1)

Manager

8th fiscal period (from August 1, 2019 to January 31, 2020)

Type

Name ofCapital stock

Description

company,orof business

investmentsorin capital

occupation

etc. or

Address

personPercentage
of votingrights, etc.
held by (in)or close
relative
of

－

Kato

director

President

0.02%

and CEO oftransaction(thousand

item

yen)

management

226,759

fee to the(Note 2)

Asset Manager

the Asset

end ofperiod(thousandyen)

Accounts
payable –others249,435(Note 2)

(Note 1)

Manager(Note 1)

Account

asset

SAR, and－amountPayment of

Director of
Atsushi

Description of

SAR

Executive
Director,

Balance atTransaction

The transaction was conducted by Atsushi Kato as President and CEO of a third party (the Asset Manager), and the transaction amountis based on the terms and conditions provided in the Articles of Incorporation of SAR.

(Note 2)Of the amounts above, the transaction amount does not include consumption tax, while the balance at the end of the period includes
consumption tax.

(Note 3)

The asset management fee for the 7th fiscal period includes the acquisition incentive portion included in the book value of individual
real estate, etc. in the amount of 5,100 thousand yen, the acquisition incentive portion included in the book value of silent partnership
equity interest in the amount of 1,000 thousand yen and the property transfer incentive portion in the amount of 14,535 thousand yen.

[Notes on Asset Retirement Obligations]
7th fiscal period (as of July 31, 2019)
Not applicable.
8th fiscal period (as of January 31, 2020)
Not applicable.
－

20

－

[Notes on Investments in Rental Properties]
SAR owns rental real estate, etc. for the purpose of earning revenue from leasing. The carrying amount, amount of increase(decrease) during the period and fair value of these investments in rental properties are as follows:(Unit: thousand yen)
7th fiscal period
From: February 1, 2019
To: July 31, 20198th fiscal period
From: August 1, 2019
To: January 31, 2020

103,340,671

103,151,622(189,048)(288,235)

103,151,622

102,863,386

112,222,000

114,110,000

Carrying amount
Balance at beginning of period
Amount of increase (decrease) during period
Balance at end of period
Fair value at end of period(Note 1) Carrying amount is the amount of the cost of acquisition, less accumulated depreciation.
(Note 2) Of the amount of increase (decrease) in the investments in rental properties during the 7th fiscal period, the amount of increase is mainly
attributable to acquisition of real estate beneficiary interest in trust of a properties (1,031,741 thousand yen) and capital expenditures (189,197
thousand yen), while the amount of decrease is mainly attributable to disposition of real estate beneficiary interest in trust of a property (51%of quasi co-ownership) (994,157 thousand yen) and depreciation (415,829 thousand yen). Of the amount of increase (decrease) during 8th
fiscal period, the amount of increase is mainly attributable to capital expenditures (131,943 thousand yen), while the amount of decrease ismainly attributable to depreciation (420,178 thousand yen).
(Note 3) Fair value at the end of the period is the appraisal value by an outside real estate appraiser. Of the fair value at the end of the 8th fiscal period,that of Alphabet Seven is based on the transfer price (3,500,000 thousand yen) stated in the contract dated March 2, 2020.

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

－

21

－

[Notes on Segment Information]
1.

2.

Segment information
Segment information is omitted because SAR operates a single segment, which is the real estate leasing business.
Related information
7th fiscal period (from February 1, 2019 to July 31, 2019)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single product andservice category are in excess of 90% of operating revenue on the statement of income.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about each major customer（Unit: thousand yen）
Customer nameOperating revenue

Godo Kaisha Sunrise

422,504 (Note)

Segment
Real estate leasing business(Note) Operating revenue is gain on sale of Hakata-eki Higashi 113 Building (quasi co-ownership interest: 51%)
8th fiscal period (from August 1, 2019 to January 31, 2020)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single product andservice category are in excess of 90% of operating revenue on the statement of income.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about major customers
Information about major customers is omitted because operating revenue to each customer is less than 10% of
operating revenue on the statement of income.

－

22

－

[Notes on Per Unit Information]
7th fiscal period
From: February 1, 2019
To: July 31, 20198th fiscal period
From: August 1, 2019
To: January 31, 2020

Net assets per unit

101,215 yen

100,401 yen

Net income per unit

3,632 yen

2,762 yen

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

Net income (thousand yen)Amount not attributable to common unitholders(thousand yen)
Net income attributable to common investment units(thousand yen)
Average number of investment units during period (units)

7th fiscal period
From: February 1, 2019
To: July 31, 20198th fiscal period
From: August 1, 2019
To: January 31, 2020

1,964,506

1,493,894--

1,964,506

1,493,894

540,824

540,824[Notes on Significant Subsequent Events]
1.Execution of a Merger Agreement with SSR
SAR and SSR, at their respective board of directors meetings held on March 2, 2020, resolved to undertake the Merger tocome into effect on August 1, 2020, with SAR as the surviving corporation and SSR as the dissolving corporation, and also
executed the Merger Agreement.
(1) Purpose of the Merger
The Merger Agreement was executed based on the determination that realization of the Merger will contribute tomaximization of unitholders’ value for both SAR and SSR, by improving revenue stability owing to expansion of asset
size, increase of DPU as a result of cost reduction, and enhanced liquidity of investment units due to an increase in
the market capitalization.
(2) Merger Ratio
Upon entering into the Merger, SAR will allocate and deliver to unitholders 1.78 SAR investment units for every one
SSR investment unit (Note). As a result, fractions of less than one investment unit will arise. Such fractional
investment units will be sold through market transactions based on the provisions of the Act on Investment Trusts
and Investment Corporations (Act No. 198 of 1951, as amended; the “Investment Trust Act”), and the proceeds fromsuch sale will be delivered to the unitholders who have been allocated fractional shares in accordance with thefractions held.
(Note) SAR is planning the Investment Unit Split to split one investment unit into two investment units with July 31,2020 as the record date and August 1, 2020 as the effective date for the Investment Unit Split, and theallocation ratio shown above are subject to the Investment Unit Split taking effect. For details of theInvestment Unit Split, please see “2. Split of Investment Units” below.
(3) Merger Money
In addition to the above mentioned investment units, SAR intends to deliver to SSR unitholders (the unitholders statedor recorded in the final unitholders’ register on the day before the effective date of the Merger (excluding those SSR
unitholders who have demanded the purchase of their investment units pursuant to Article 149-3 of the Investment
Trust Act; hereinafter referred to as the “Unitholders Subject to Allocation”), based on SSR’s distributable income,merger money equal to cash distributions which would have been made for the final business period of SSR. The
merger money is to be calculated by dividing the amount of SSR’s distributable income as of the day before theeffective date of the Merger by the total number of issued and outstanding SSR investment units on such date after
deducting the number of investment units held by unitholders other than the Unitholders Subject to Allocation(fractions of a yen to be rounded down), and is scheduled to be paid within a reasonable period from the effective
date of the Merger.
－

23

－

(4) Overview of SSR’s latest fiscal period (from July 1, 2019 to December 31, 2019)
Business description: Investing in and managing mainly specified assets based on the Investment Trust Act
Operating revenue: 2,391 million yen
Net income:
Total assets:

704 million yen
63,111 million yen

Total liabilities:
Net assets:

33,152 million yen
29,959 million yen

2. Split of Investment Units
SAR resolved at its board of directors meeting held on March 2, 2020 to split its investment units (the “Investment Unit Split”)(1) Purpose of Investment Unit Split
As mentioned in “1. Execution of a Merger Agreement with SSR” above, the Merger will be conducted through anabsorption-type merger with SAR as the surviving corporation. The merger ratio before taking into consideration theInvestment Unit Split is SSR 0.89 to SAR 1. However, on the basis of such merger ratio, 0.89 SAR investment units
would be allocated and delivered against one SSR investment unit, resulting in many SSR unitholders being allocatedfractions of less than one SAR investment unit. Therefore, to make it possible for SSR unitholders to continue holding
SAR investment units after the Merger, it has been decided to carry out a 2 for 1 split of the SAR investment units, forthe purpose of delivering to all SSR unitholders at least one SAR investment unit.
(2)

Method of Investment Unit Split
Each SAR investment unit owned by the SAR unitholders as stated or recorded in the final unitholders’ register on July
31, 2020, which is the day immediately preceding the effective date of the Merger will be split 2-for-1. The Investment
Unit Split will take effect on August 1, 2020, the effective date of the Merger, subject to all conditions precedent for
the Merger set forth in the Merger Agreement being satisfied.

(3)

Increase in number of investment units by Investment Unit Split
Total number of issued and outstanding SAR investment units(i)：
540,824 units
prior to the Investment Unit Split
Number of investment units to increase by the Investment Unit(ii)：
540,824 units
Split
Total number of issued and outstanding SAR investment units(iii)： 1,081,648 units
after the Investment Unit Split
Total number of issued and outstanding SAR investment units(iv)： 1,674,389 units (Note)after the Merger
Total number of authorized investment units after the(v)： 10,000,000 units
Investment Unit Split and the Merger(Note) The number of units is calculated on the assumption that, upon the Merger, 1.78 SAR investment units
after the Investment Unit Split will be allocated to each SSR investment unit, with respect to all issued andoutstanding SSR investment units (333,001 units) as of the date of this report.

(4)

Schedule of Investment Unit Split
Announcement of record date for the Investment Unit Split：July 10, 2020 (tentative)

Record date for the Investment Unit Split：July 31, 2020 (tentative)

Effective date for the Investment Unit Split：August 1, 2020 (tentative)(5)

Impact on per unit information
Per unit information for the 7th fiscal period and 8th fiscal period, prepared on the assumption that the Investment
Unit Split had been conducted at the beginning of the 7th fiscal period are as follows.
7th fiscal period
From: February 1, 2019
To: July 31, 20198th fiscal period
From: August 1, 2019
To: January 31, 2020

Net assets per unit

50,607 yen

50,200 yen

Net income per unit

1,816 yen

1,381 yen

－

24

－

3. Asset transfer
SAR has decided on the following asset transfer.
<Alphabet Seven>
Asset to be transferred: Quasi-co-ownership in a trust beneficiary interest in which the main trust assts are real estate in
Signing date:Japan (1st transfer 40%, 2nd transfer 60%)
March 2, 2020

Scheduled transfer dates:
1st transfer (40% quasi-co-ownership interest)

July 1, 2020

2nd transfer (60% quasi-co-ownership interest)
December 1, 2020
Location (indication of residential address): 7-6-38, Akasaka, Minato-ku, Tokyo
Expected Buyer:
Kanden Realty & Development Co., Ltd.
Expected Transfer price:
1st transfer (40% quasi-co-ownership interest)
2nd transfer (60% quasi-co-ownership interest)

1,400 million yen
2,100 million yen

Effect on profit and loss: Operating revenues from gain on sale of real estate property are expected to be recorded in theamount of approximately 642million yen in the fiscal period ended July 31, 2020 and approximately 970 million yen in thefiscal period ended January 31, 2021, respectively.

－

25

－

(9) Changes in Total Number of Investment Units Issued and Outstanding
The following are the changes in unitholders’ capital and total number of investment units issued and outstanding from the dateof establishment of SAR to the end of the 8th fiscal period.
Total number of investment
Unitholders’ capitalunits issued and outstanding(thousand yen)(units)(Note 11)
Date
Event
Remarks
Increase
Increase
Balance
Balance(Decrease)(Decrease)
December 1, 2015
January 14, 2016

Establishment through

2,000

2,000

200,000

200,000(Note 1)

95,00097,0009,500,000

9,700,000(Note 2)

private placement
Capital increase throughprivate placement

April 19, 2016

Capital increase throughpublic offering

235,900

332,900

22,705,375

32,405,375(Note 3)

May 17, 2016

Capital increase throughthird-party allotment

11,800344,700

1,135,750

33,541,125(Note 4)

April 4, 2017

Capital increase throughpublic offering

66,200410,900

6,173,017

39,714,142(Note 5)3,400

414,300

317,043

40,031,185(Note 6)53,641

467,941

5,525,130

45,556,316(Note 7)

2,683

470,624

276,354

45,832,670(Note 8)

April 24, 2017
February 1, 2018
February 27, 2018

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

September 5, 2018

Capital increase throughpublic offering

66,857537,4816,584,077

52,416,747(Note 9)October 2, 2018

Capital increase throughthird-party allotment

3,343

540,824

329,218

52,745,966(Note 10)(Note 1) Investment units were issued at a paid-in amount of 100,000 yen per unit upon the establishment of SAR.
(Note 2) Investment units were issued at a paid-in amount of 100,000 yen per unit.
(Note 3) New investment units were issued through public offering at an issue price of 100,000 yen (paid-in amount of 96,250 yen) per unit for the
purpose of procuring funds for acquisition of new properties, etc.
(Note 4) New investment units were issued through third-party allotment at a paid-in amount of 96,250 yen per unit for the purpose of procuring funds
for repayment of borrowings.
(Note 5) New investment units were issued through public offering at an issue price of 96,720 yen (paid-in amount of 93,248 yen) per unit for the purposeof procuring funds for acquisition of new properties.
(Note 6) New investment units were issued through third-party allotment at a paid-in amount of 93,248 yen per unit for the purpose of procuring funds
for repayment of borrowings.
(Note 7) New investment units were issued through public offering at an issue price of 106,724 yen (paid-in amount of 103,002 yen) per unit for the
purpose of procuring funds for acquisition of new properties.
(Note 8) New investment units were issued through third-party allotment at a paid-in amount of 103,002 yen per unit for the purpose of procuring funds
for repayment of borrowings.
(Note 9) New investment units were issued through public offering at an issue price of 101,985 yen (paid-in amount of 98,480 yen) per unit for the
purpose of procuring funds for acquisition of new properties.
(Note 10) New investment units were issued through third-party allotment at a paid-in amount of 98,480 yen per unit for the purpose of procuring funds
for repayment of borrowings.
(Note 11) Deduction of reversal of allowance for temporary difference adjustment in line with the cash distribution in excess of earnings from unitholders’capital is not considered.

－

26

－

4.

Reference Information(1) Investment Status

Type ofasset

Primary use

7th fiscal period

8th fiscal period(As of July 31, 2019)(As of January 31, 2020)

Geographic area

Total amount

As a percentage

Total amount

As a percentage(Note 1)

heldof total assets

heldof total assets(million yen)(%)(million yen)(%)

(Note 2)

(Note 3)(Note 2)

(Note 3)

Greater Tokyo

20,172

18.3

20,130

18.4

Other than Greater Tokyo

15,896

14.4

15,825

14.4

Greater Tokyo

12,435

11.3

12,411

11.3

Other than Greater Tokyo

3,135

2.8

3,126

2.9

Greater Tokyo

30,87728.0

30,793

28.1

Greater Tokyo

12,83011.6

12,811

11.7

Other than Greater Tokyo

7,804

7.1

7,764

7.1

103,151

93.6

102,863

93.8

Investment securities

723

0.7

711

0.6

Long-term loans receivable

300

0.3

300

0.3

Deposits and other assets

6,065

5.5

5,773

5.3

Total amount of assets

110,240

100.0

109,649

100.0

OfficeReal

Residence

estatein trust

Logistics facility

Hotel

Subtotal

Amount(million yen)

As a percentage
of total assets(%)

Amount(million yen)

As a percentage
of total assets(%)

Total amount of liabilities (Note 4)

55,50050.3

55,34950.5

Total amount of net assets (Note 4)

54,73949.7

54,29949.5(Note 1) “Greater Tokyo” refers to Tokyo’s 23 wards, Yokohama City and Kawasaki City in the case of the office asset type, andTokyo, Kanagawa, Saitama and Chiba Prefectures in the case of other asset types (residence, logistics facility and hotel).
The same shall apply hereinafter.
(Note 2) “Total amount held” is the carrying amount as at the date of settlement of accounts (in the case of real estate in trust,then the depreciated book value), rounded down to the nearest million yen.
(Note 3) “As a percentage of total assets” is the carrying amount of the concerned assets expressed as a percentage of the total
amount of assets, rounded to the first decimal place.
(Note 4) “Total amount of liabilities” and “Total amount of net assets” are according to total liabilities and total net assets on
the balance sheet.

－

27

－

(2) Investment Assets① Investment securities

Asset
no.

Name of the security

Type of asset

Quantity(Units)Book value

Fair value

Unrealized(million yen)(million yen)gain or

Unit
price

MEZ-01

MEZ-03

Star Asia Mezzanine Loan

Corporate

Debt Investment Series 1

bondStar Asia Mezzanine Loan
Debt Investment Series 3

Subordinated silent
TKI-01

partnership equity interest
in Godo Kaisya SAPR8

Silent partnership equity
TKI-02interest in Godo Kaisya
SAPR7

－

Amount

－

loss

Unit
price

400

－

124

－

105

－

81

－

711

－

Remarks(million

Amount

yen)
400

－

124

－

105

－

81

－

711

－

(Note 2)Trust－

beneficiary－(Note 1)

(Note 1)
(Note 3)rightsSilentpartnership－－

equity(Note 4)(Note 5)interest
Silentpartnership－－

equity(Note 4)(Note 5)interest
Total

－

－

－

－

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

Type of specified
asset

Property nameUrban Park
Mitsuike Koen

Subordinated silent partnership equity

Beneficiaryinterest in Godo Kaisya SAPR8interest in trust

Silent partnership equity interest
in Godo Kaisya SAPR7

Beneficiary interestin trust－

28－

Location(Indication of residential address)
6-10-5 Shimosueyoshi, Tsurumi-ku,
Yokohama City, Kanagawa
Prefecture

Urban Park

40-1 Tokiwadai, Hodogaya-ku,

Tokiwadai Koen

Yokohama City, Kanagawa Prefecture

OHA Building

1-22-17 Akebono-cho, Tachikawa-shi,Tokyo② Real estate(a) Overview of real estate (purchase price, etc.)
PropertyUse

no.

Property nameAcquisition

Share of

Location

price

investment(Note 2)

(million yen)(%)

(Note 3)(Note 4)(Note 1)

OFC-01

OFC-03

OFC-04

OFC-05

Minami-Azabu Shibuya

Minato Ward,

Building

Tokyo

Honmachibashi Tower

Chuo Ward,
Osaka City, Osaka

Nishi-Shinjuku Matsuya

Shibuya Ward,

BuildingTokyo

Alphabet Seven

Minato Ward,(Note 6)Tokyo

OFC-06

Shibuya MK Building

OFC-08Asahi Building

Shibuya Ward,
Tokyo

Real estateappraisalvalue, etc.

Acquisition date(million yen)
(Note 5)

2,973

2.9

3,070

January 14, 2016

6,065

5.9

6,960

January 14, 2016

1,763

1.7

2,510

April 20, 2016

1,725

1.7

2,670

April 20, 2016

2,042

2.0

3,260

April 20, 2016

6,320

6.2

7,840

April 20, 2016

2,286

2.2

2,590

April 6, 2017

1,450

1.4

1,550

February 2, 2018

2,580

2.5

2,690

September 6, 2018

7,440

7.3

7,520

September 6, 2018

1,020

1.0

1,160

February 1, 201935,66434.8

41,820

－

2,045

2.0

2,480

January 14, 2016

6,315

6.2

8,240

January 14, 2016

1,490

1.5

1,650

April 20, 2016

1,460

1.4

1,530

February 1, 2017

1,186

1.2

1,190

April 6, 2017

1,550

1.5

1,620

February 2, 2018

1,167

1.1

1,180

February 2, 201815,21314.9

17,890－Kanagawa Ward,

OfficeYokohama City,
Kanagawa
Hakata Ward,

OFC-09Hakata-eki East Place

Fukuoka City,
Fukuoka

OFC-10

OFC-11

OFC-12

OFC-13

Nihonbashi Hamacho Park
Building

Chuo Ward, Tokyo

Amusement Media

Shibuya Ward,

Gakuin Honkan

Tokyo

Higashi-KobeHigashinada Ward,

Center Building

Kobe City, Hyogo

Amusement Media

Shibuya Ward,

Gakuin Shinkan

Tokyo

Residence

Subtotal
RSC-01

Urban Park Azabujuban

RSC-02

Urban Park Daikanyama

RSC-05

Urban Park Namba

RSC-06

Urban Park Gokokuji

RSC-07

Urban Park Kashiwa

RSC-08

Urban Park Ryokuchi Koen

RSC-09Urban Park Koenji

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

Subtotal－29－

Iwatsuki Ward,
LGC-01

Iwatsuki Logistics

Saitama City,

6,942

6.8

7,310

January 14, 2016

3,560

3.5

4,170

January 14, 2016

7,875

7.7

8,650

January 14, 2016

4,700

4.6

4,850

April 6, 2017

1,300

1.3

1,350

April 6, 2017

3,000

2.9

3,020

February 2, 2018

821

0.8

850

February 2, 2018

2,755

2.7

2,860

February 2, 2018

30,95330.2

33,060

－

2,069

2.0

2,320

January 14, 2016

1,750

1.7

1,490

January 14, 2016

3,827

3.7

3,750

April 6, 2017

3,248

3.2

3,250

April 6, 2017

1,970

1.9

2,000

September 6, 2018

2,500

2.4

2,520

September 6, 2018

3,180

3.1

3,210

September 6, 2018

2,000

2.0

1,970

September 6, 2018

20,54420.1

20,510－102,374

100.0

113,280－

Saitama
Kanagawa Ward,
LGC-02

Yokohama Logistics

Yokohama City,

Logistics facility

Kanagawa
LGC-03

Funabashi Logistics

LGC-04

Baraki Logistics

LGC-05Tokorozawa Logistics

LGC-06

LGC-07

LGC-08

Funabashi City,
Chiba
Ichikawa City,
Chiba
Tokorozawa City,
Saitama

Funabashi Nishiura

Funabashi City,

Logistics I

Chiba

Funabashi Nishiura

Funabashi City,

Logistics II

Chiba

Matsubushi Logistics

Kitakatsushika,
Saitama

Subtotal
HTL-01R&B Hotel Umeda East

HTL-02

Smile Hotel Namba

HTL-03

Kita Ward,
Osaka City, Osaka
Naniwa Ward,
Osaka City, Osaka

BEST WESTERN Tokyo

Edogawa Ward,

Nishikasai

Tokyo
Tsurumi Ward,

HTL-04

BEST WESTERN Yokohama

Yokohama City,

Hotel

Kanagawa

HTL-05

HTL-06

HTL-07

HTL-08

Hotel WBF Fukuoka Tenjin
Minami

Chuo Ward,
Fukuoka City,
Fukuoka

GLANSIT AKIHABARA

Chiyoda Ward,
TokyoBest Western Tokyo

Edogawa Ward,

Nishikasai GrandeTokyo

Hotel WBF Art Stay Namba

Naniwa Ward,
Osaka City, Osaka

Subtotal
Total(Note 1) “Property no.” is assigned to SAR’s investment assets by categorizing into office (OFC), retail facility (RTL), residence (RSC), logistics facility(LGC) and hotel (HTL), and numbering in order by category. The same shall apply hereinafter.
(Note 2) “Location” is the smallest independent administrative district in which each investment asset is located.
(Note 3) “Acquisition price” indicates the sale and purchase price stated in the sale and purchase agreement for each investment asset. (Not including
consumption tax and local consumption tax.) However, in the case of Minami-Azabu Shibuya Building, since the price for each investment
asset among multiple assets is not set in the sale and purchase agreement, the total sale and purchase price is divided proportionally basedon the ratio of the appraisal value of the properties at the time of acquisition and indicated as the acquisition price.
(Note 4) “Share of investment” is the acquisition price of the investment asset indicated as the ratio of the total of acquisition price, rounded to thefirst decimal place.
(Note 5) Daiwa Real Estate Appraisal Co., Ltd., Japan Real Estate Institute and The Tanizawa Sogo Appraisal co., Ltd. are entrusted with appraisals. Realestate appraisal values are the figures indicated in the real estate appraisal report with January 31, 2020 as the date of value and are rounded
to the nearest million yen. For details, please refer to “ (d) Summary of Real Estate Appraisal Reports, etc.”.

－

30

－

(Note 6) As for Alphabet Seven, 40% of quasi-co-ownership interest in the trust beneficiary interest is scheduled be transferred on July 1,2020 and
60% of quasi-co-ownership interest in the trust beneficiary interest is scheduled to be transferred on December 1,2020. The same shall apply
hereinafter.

(b) Portfolio Summarya.

By Geographic Area
Geographic area

Acquisition price(million yen)

Share
(%)
(Note 1)

Greater

5 central wards of Tokyo (Note 2)

24,413

23.8

Tokyo

Other areas in Greater Tokyo

51,341

50.2

74.0

Other than Greater Tokyo

26,620

26.0

Total

102,374100.0(Note 1) “Share” is calculated on the basis of acquisition price, rounded to the first decimal place. Accordingly, the shares
may not add up to 100%. The same shall apply hereinafter in “c. By Asset Type (Use).”(Note 2) “5 central wards of Tokyo” refers to Chiyoda, Chuo, Minato, Shinjuku and Shibuya Wards. The same shall apply
hereinafter.
(a) OfficeGeographic area
GreaterTokyo

Acquisition price(million yen)

Share
(%)

5 central wards of Tokyo

13,553

38.0

Other areas in Greater Tokyo

6,320

17.7

55.7

Other than Greater Tokyo

15,791

44.3

Total

35,664100.0(b) Residence
Geographic area

Acquisition price(million yen)

Share
(%)

Greater

5 central wards of Tokyo

8,360

55.0

Tokyo

Other areas in Greater Tokyo

3,813

25.1

80.0

Other than Greater Tokyo

3,040

20.0

Total

15,213100.0(c) Logistics facility
Geographic area
GreaterTokyo

Acquisition priceShare(million yen)

(%)
－

－

30,953100.0

5 central wards of Tokyo

100.0
Other areas in Greater Tokyo－－

30,953

100.0

Other than Greater Tokyo
Total

－

31

－

(d) Hotel
Geographic area
GreaterTokyob.

Acquisition priceShare(million yen)(%)

5 central wards of Tokyo

2,500

12.2

Other areas in Greater Tokyo

10,255

49.9

62.1

Other than Greater Tokyo

7,789

37.9

Total

20,544100.0

By Size
Acquisition price

5 billion yen or more
but less than 10 billion yen

Share

Number of(%)(Note)

properties
6

17.6

27

79.4

Less than 1 billion yen

1

2.9

Total

34

100.0

1 billion yen or more
but less than 5 billion yen(Note)c.

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

By Asset Type (Use)
Number ofproperties

Acquisition price(million yen)

Office1135,664

34.8

Residence

7

15,213

14.9

Logistics facility

830,953

30.2

Hotel

8

20,544

20.1

Total

34

102,374

100.0

Use

－

32

－

Share
(%)

(c) Status of Leasing

Propertyno.

OFC-01

OFC-03

OFC-04

Property nameMinami-Azabu Shibuya
Building
Honmachibashi Tower
Nishi-Shinjuku Matsuya
Building

Construction

Number oftenants

completion(Note 1)

June 1993

55

February 2010

(Note 7)

Operating

Security andrevenueguarantee

from leasing

deposits(thousand(thousand

yen)

yen)

(Note 2)

(Note 3)

Leased area Leasable area
(m2)

(m2)

(Note 4)(Note 5)

Occupancy
rate(%)(Note 6)

96,950110,263

3,263.08

3,263.08

100.0

217,369

198,451

10,489.58

10,489.58

100.0

May 198710

107,954

127,097

3,521.03

3,521.03

100.0

January 1990

10

75,367

94,3032,464.59

2,464.59

100.0

July 1993

4

79,478106,556

1,612.88

1,612.88

100.0

OFC-05Alphabet Seven

OFC-06

Shibuya MK Building

OFC-08Asahi Building

November 1994

20

226,226

246,717

8,672.01

8,672.01

100.0

OFC-09Hakata-eki East Place

February 1986

18

102,116

86,452

4,632.70

4,632.70

100.0

July 1992

4

48,23879,5471,911.84

1,911.84

100.0

Not

Not

Not

disclosed

disclosed

disclosed

1,892.18

100.0(Note 9)(Note 9)(Note 9)16,931.82

94.4

781.33100.0

OFC-10

OFC-11

OFC-12

OFC-13

RSC-01

Nihonbashi Hamacho Park
Building
Amusement Media Gakuin
HonkanHigashi Kobe Center Building

Amusement Media Gakuin
ShinkanUrban Park Azabujuban

November 1994

1

January 1992

51

January 1999

1

November 1999

311,330

292,458

15,987.30

Not

Not

Not

disclosed

disclosed

disclosed(Note 9)(Note 9)(Note 9)44

59,237

11,291

1,986.76

1,986.76

100.0

70

187,268

77,131

5,864.69

5,977.18

98.1

Existing:
RSC-02

Urban Park Daikanyama

November 1982
Newly built:
May 2006

RSC-05

Urban Park Namba

January 2013

117

50,697-2,584.81

2,584.81

100.0

RSC-06

Urban Park Gokokuji

February 1990

106

52,187

8,899

1,931.28

1,964.04

98.3

RSC-07

Urban Park Kashiwa

August 1997

41

38,094

8,352

2,954.77

2,954.77

100.0

RSC-08

Urban Park Ryokuchi Koen

March 1989

54

58,3839,243

5,114.16

5,508.94

92.8

RSC-09Urban Park Koenji

October 1987

74

36,647

6,015

1,332.59

1,365.48

97.6

LGC-01

Iwatsuki Logistics

October 20143

202,816

97,01430,190.81

30,190.81

100.0

LGC-02

Yokohama Logistics

October 1994

1

18,142.08

100.0

－

33

－

Not

Not

Not

disclosed

disclosed

disclosed(Note 9)(Note 9)(Note 9)Building 1:
LGC-03

Funabashi Logistics

September 1992

4

Building 2:

260,597

83,42634,901.67

38,086.56

91.6

12,126.28

100.0

5,994.75

100.0

14,018.82

100.0

6,315.87

100.0

19,833.47

100.0

August 1997

LGC-04

LGC-05

LGC-06

Baraki Logistics

August 2015

Tokorozawa Logistics

Funabashi Nishiura Logistics I

2

April 1999

1

October 1985

1

Warehouse: March
LGC-07

Funabashi Nishiura Logistics
II

1991
Factory: May 1972

1

Office: May 1986

LGC-08

Matsubushi Logistics

March 1997

1

Not

Not

Not

disclosed

disclosed

disclosed(Note 9)(Note 9)(Note 9)

Not

Not

Not

disclosed

disclosed

disclosed(Note 9)(Note 9)(Note 9)

Not

Not

Not

disclosed

disclosed

disclosed(Note 9)(Note 9)(Note 9)

Not

Not

Not

disclosed

disclosed

disclosed(Note 9)(Note 9)(Note 9)

Not

Not

Not

disclosed

disclosed

disclosed(Note 9)(Note 9)(Note 9)HTL-01R&B Hotel Umeda East

October 2000

1

65,30273,4953,940.93

3,940.93

100.0

HTL-02

Smile Hotel Namba

February 20081

31,319-1,711.42

1,711.42

100.0

March 1991

1

84,60084,6005,293.88

5,293.88

100.0

September 1987

1

80,40080,4004,686.09

4,686.09

100.0

February 2017

1

2,281.49

100.0

1,089.06

100.0

2,755.19

100.0

2,061.46

100.0

247,043.18

98.1

HTL-03

HTL-04

HTL-05

HTL-06

HTL-07

HTL-08BEST WESTERN Tokyo
Nishikasai
BEST WESTERN Yokohama

Hotel WBF Fukuoka Tenjin
Minami

GLANSIT AKIHABARABEST WESTERN Tokyo
Nishikasai Grande

Hotel WBF Art Stay Namba

September 2017

1

February 20171

April 2017

1

Total

Not

Not

Not

disclosed

disclosed

disclosed(Note 9)(Note 9)(Note 9)

Not

Not

Not

disclosed

disclosed

disclosed(Note 9)(Note 9)(Note 9)70,002657

116,670

2,755.19

Not

Not

Not

disclosed

disclosed

disclosed(Note 9)(Note 9)(Note 9)3,200,669

2,466,484

242,340.85(Note 1) “Number of tenants” is the number of tenants (excluding parking) under the lease agreement stated in the leaseagreement for each investment asset as of January 31, 2020. If a single tenant is leasing multiple rental units in an
investment asset, the tenant is counted as 1 tenant for the concerned investment asset. If a single tenant is leasing
rental units across multiple investment assets, the tenant is counted as separate tenants and the sum total numberof tenants is stated in the total column. Furthermore, in cases where a pass-through type master lease agreement
under which rent from end-tenants is received in principle (“pass-through type master lease”) has been concluded
for the concerned investment asset, the total number of end-tenants is stated. In cases where a master leaseagreement agreeing to the effect that the rent under the master lease agreement shall be a fixed rent (“rentguaranteed type master lease”) has been concluded for the concerned investment asset, the number of tenants is 1
and the sum total of these is stated.
(Note 2) “Operating revenue from leasing” is rental revenue, common area maintenance revenue, parking revenue and otherrevenue generated from real estate held during the fiscal period under review (including other lease businessrevenue).
－34－

(Note 3) “Security and guarantee deposits” is the sum total amount of tenant security and guarantee deposits required basedon the lease agreement (including deposits based on parking, antenna, rooftop and other agreements; the amountafter depreciation) for each investment asset as of January 31, 2020 (limited to those occupied as of said date).
Furthermore, in cases where a pass-through type master lease agreement has been concluded for the concerned
investment asset, it is the sum total amount of tenant security and guarantee deposits under lease agreements
concluded with end-tenants.
(Note 4) “Leased area” is the sum total of the leased area stated in the lease agreement for each investment asset as ofJanuary 31, 2020. Furthermore, in cases where a master lease agreement has been concluded for the concerned
investment asset, it is the sum total of the leased area under lease agreements concluded with end-tenants forproperties under a pass-through type master lease, and it is the leased area under the master lease agreement for
properties under a rent-guaranteed type master lease.
(Note 5) “Leasable area” is the floor area regarded as being available for leasing based on the lease agreement or building
drawing, etc. of the building for each investment asset as of January 31, 2020.
(Note 6) “Occupancy rate” is the ratio of leased area to leasable area for each investment asset as of January 31, 2020,
rounded to the first decimal place. In addition, in the total column, it is the ratio of the sum total of leased area tothe sum total of leasable area for each investment asset, rounded to the first decimal place.
(Note 7) Of the tenants of the property, a single company leases all 36 units of the residential portion, of which 30 units areunder a rent-guaranteed type master lease agreement and 6 units are under a pass-through type master leaseagreement.
(Note 8) In the table, “Number of tenants,” “Security and guarantee deposits,” “Leased area” and “Occupancy rate” are basedon lease agreements valid as of January 31, 2020, even if there is a notice of cancellation or termination of leaseagreements with end-tenants or unpaid rent.
(Note 9) Not disclosed, because consent for disclosure has not been obtained from the tenants.
(d) Summary of Real Estate Appraisal Reports, etc.
Summary of appraisal reports

Use

Appraisal

Property

Property name

no.

firm
(Note 1)

Income approachAppraisal
value

DCF

methodmethod(million yen)
(Note 2)

Appraisal

Direct capitalization

Indicatedvalue(million yen)

Cap rate(%)

NOI yield

NOI

Indicated

Discount

Terminal

value

rate

cap rate(million yen)

(%)

(%)

(million yen)(%)

(Note 3)(Note 4)

OFC-01

Minami-Azabu Shibuya Building

Daiwa

3,070

3,170

3.9

3,020

3.5

4.1

139

4.7

OFC-03

Honmachibashi Tower

Daiwa

6,960

7,070

4.2

6,910

4.0

4.4

311

5.1

OFC-04

Nishi-Shinjuku Matsuya Building

Daiwa

2,510

2,450

4.1

2,530

3.9

4.3

113

6.4

OFC-05Alphabet Seven

JREI

2,670

2,720

3.7

2,620

3.5

3.9

105

6.1

OFC-06

Shibuya MK Building

JREI

3,260

3,320

3.5

3,190

3.3

3.7

120

5.9

OFC-08Asahi Building

JREI

7,840

7,970

3.6

7,700

3.4

3.8

317

5.0

OFC-09Hakata-eki East Place

Daiwa

2,590

2,580

4.6

2,600

4.4

4.8

120

5.2

Daiwa

1,550

1,540

4.3

1,550

4.1

4.5

68

4.7

Daiwa

2,690

2,740

3.6

2,670

3.4

3.8

102

4.0

Higashi Kobe Center Building Tanizawa

7,520

7,630

5.0

7,470

5.1

5.2

430

5.8

1,160

1,180

3.4

1,130

3.2

3.6

41

4.0

41,82042,370-41,390

-

-

1,865

5.2

OfficeOFC-10

OFC-11
OFC-12
OFC-13

Nihonbashi Hamacho Park
Building
Amusement Media Gakuin
HonkanAmusement Media Gakuin
Shinkan

JREI

Subtotal－

35－

RSC-01

Urban Park Azabujuban

JREI

2,480

2,530

3.5

2,430

3.3

3.7

91

4.4

RSC-02

Urban Park Daikanyama

JREI

8,240

8,410

3.4

8,060

3.2

3.6

298

4.7

RSC-05

Urban Park Namba

Daiwa

1,650

1,670

4.7

1,640

4.5

4.9

80

5.4

RSC-06

Urban Park Gokokuji

JREI

1,530

1,550

4.0

1,500

3.8

4.2

69

4.8

RSC-07

Urban Park Kashiwa

Tanizawa

1,190

1,210

4.6

1,180

4.7

4.8

59

5.0

RSC-08

Urban Park Ryokuchi Koen

Tanizawa

1,620

1,640

4.8

1,610

4.9

5.0

89

5.7

RSC-09Urban Park Koenji

Tanizawa

Residence

Subtotal

4.0

1,170

4.1

4.2

55

4.7

-

17,590

-

-

742

4.9

Iwatsuki Logistics

Daiwa

7,310

7,410

4.4

7,270

4.2

4.6

332

4.8

LGC-02

Yokohama Logistics

Daiwa

4,170

4,200

4.2

4,150

4.0

4.4

204

5.7

LGC-03

Funabashi Logistics

Daiwa

8,650

8,710

4.2

8,620

4.0

4.4

419

5.3

LGC-04

Baraki Logistics

Tanizawa

4,850

4,970

4.0

4,800

3.9

4.2

201

4.3

LGC-05Tokorozawa Logistics

JREI

1,350

1,360

5.0

1,330

4.6

5.3

74

5.7

LGC-06

Funabashi Nishiura Logistics I

Daiwa

3,020

3,040

4.6

3,010

4.3

4.7

153

5.1

LGC-07

Funabashi Nishiura Logistics II Daiwa

850

843

5.6

853

5.4

5.8

57

7.0

LGC-08

Matsubushi Logistics

JREI

Subtotal

2,860

2,870

5.1

2,840

4.6

5.4

151

5.5

33,06033,403-32,873

-

-

1,591

5.1

HTL-01R&B Hotel Umeda East

Daiwa

2,320

2,330

4.5

2,310

4.3

4.7

113

5.5

HTL-02

Smile Hotel Namba

Daiwa

1,490

1,500

4.7

1,480

4.5

4.9

75

4.3

JREI

3,750

3,800

4.3

3,690

4.1

4.5

168

4.4

JREI

3,250

3,290

4.4

3,200

4.2

4.6

149

4.6

Tanizawa

2,000

2,040

4.4

1,980

4.4

4.6

90

4.6

Tanizawa

2,520

2,580

3.8

2,490

3.7

4.0

98

3.9

3,210

3,230

3.9

3,200

3.8

4.1

126

4.0

HTL-03
HTL-04Hotel

1,200
18,210

LGC-01

Logistics
facility

1,180
17,890

HTL-05
HTL-06
HTL-07

HTL-08BEST WESTERN Tokyo
Nishikasai
BEST WESTERN Yokohama
Hotel WBF Fukuoka Tenjin
Minami
GLANSIT AKIHABARABest Western Tokyo Nishikasai
GrandeHotel WBF Art Stay Namba

Tanizawa

Daiwa

1,970

1,980

4.3

1,960

4.1

4.5

86

4.3

20,51020,750-20,310

-

-

906

4.4

113,280

114,733-

112,163

-

-

5,104

5.0

Subtotal
Total(Note 1) “Appraisal firm” is shown as “Daiwa” to stand for Daiwa Real Estate Appraisal Co., Ltd., “JREI” to stand for Japan Real
Estate Institute and “Tanizawa” to stand for The Tanizawa Sogo Appraisal co., Ltd.
(Note 2) “Appraisal value” is as of January 31, 2020 as the date of value.
(Note 3) “NOI” is the net operating income by the direct capitalization method stated in the appraisal report, rounded to thenearest million yen.
(Note 4) “Appraisal NOI yield” is based on the net operating income by the direct capitalization method stated in the appraisal
report and expressed as a percentage of acquisition price, rounded to the first decimal place.

－

36

－

(e) Information on Major Real Estate Properties
Of investment assets, there is no property that falls under the category of major real estate properties (buildings/facilities
pertaining to land recognized to be used collectively, of which total rental revenue accounts for 10% or more of the sum totalof total rental revenue of investment assets) as of January 31, 2020. Of investment assets, the following are top five properties
in terms of total rental revenue as of January 31, 2020.
Changes in occupancy rate (%) (Note)
January 31, 2018

July 31, 2018

January 31, 2019

July 31, 2019

January 31, 2020

Higashi Kobe Center
Building

-

-

96.1

89.6

94.4

Funabashi Logistics

91.6

91.6

91.6

91.6

91.6

Asahi Building

100.0

100.0

100.0

100.0

100.0

Iwatsuki Logistics

100.0

100.0

100.0

100.0

100.0

Honmachibashi
Tower

100.0

100.0

100.0

100.0

100.0

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

(f) Top 10 End-Tenants in Terms of Leased Area
The following table lists the tenants ranking in the top ten tenants in terms of leased area of investment assets.
Leased area
Name of tenant

Name of property occupied(m2)(Note 1)

As a percentage of
total leasable area(%)
(Note 2)

1

Not disclosed (Note 3)

Iwatsuki Logistics

Not disclosed (Note 3)

12.0

2

Not disclosed (Note 3)

Funabashi Logistics

Not disclosed (Note 3)

8.8

3

Tokyo Nohin Daiko

Matsubushi Logistics

19,833.47

8.0

4

Not disclosed (Note 3)

Yokohama Logistics

Not disclosed (Note 3)

7.3

5

Not disclosed (Note 3)

Funabashi Nishiura Logistics I

Not disclosed (Note 3)

5.7

12,735.16

5.2

BEST WESTERN Tokyo Nishikasai
BEST WESTERN Yokohama

6

Rembrandt Inn

7

Not disclosed (Note 3)

Funabashi Logistics

Not disclosed (Note 3)

2.9

8

Not disclosed (Note 3)

Funabashi Nishiura Logistics II

Not disclosed (Note 3)

2.6

9

Not disclosed (Note 3)

Baraki Logistics

Not disclosed (Note 3)

2.5

10

Not disclosed (Note 3)

Baraki Logistics

Not disclosed (Note 3)

2.4

141,877.25

57.4

Best Western Tokyo Nishikasai
GrandeTotal of the top 10 tenants(Note 1) “Leased area” is the sum total of the leased area stated in the lease agreement for each investment asset as ofJanuary 31, 2020.
(Note 2) “As a percentage of total leasable area” is the area leased to the tenant expressed as a percentage of the sum totalof leasable area of all investment assets, rounded to the first decimal place.
(Note 3) Not disclosed, because consent for disclosure has not been obtained from the end-tenants, etc.

－

37

－

(g) Capital Expendituresa.

Schedule of Capital Expenditures for the 9th fiscal period
The following are the principal capital expenditures arising from renovation construction works, etc. currently planned
for the assets held by SAR as of January 31, 2020. Please note that the expected construction amounts include portions
that are expensed as a separate account item of accounting costs.
Estimated construction costs(thousand yen)
Name of real estate, etc.
Amount of Total
PurposeScheduled period(Location)
Total
payment amountamountduringalready
periodpaid
Asahi Building(Yokohama City, Kanagawa)

Renovation of air-conditioning
equipment

From: Apr. 2020
To:
Jul. 2020

30,000Best Western Tokyo Nishikasai

Renewal of hot water supply

From: Apr. 2020

18,400(Edogawa Ward, Tokyo)

equipment

To: Jun. 2020

Nishi-Shinjuku Matsuya Building

Renewal of DC power supply

From: May.2020(Shibuya Ward, Tokyo)

equipment

Urban Park Gokokuji(Toshima Ward, Tokyo)

Renewal of hot water supply
equipment

From: Apr. 2020
To: Jul. 2020

12,000Hakata-eki East Place(Fukuoka City, Fukuoka)

Renewal of multi-story
parking facility

From: May. 2020
To: Jul. 2020

11,847

Funabashi Nishiura Logistics Ⅰ(Funabashi City, Chiba)

b.

－

－

17,000

To: Jul. 2020

Facilities investment inside
warehouse including installing
LED lighting

From: May. 2020

10,000

To: Jul. 2020

Capital Expenditures during the 8th fiscal period
The following summarizes the primary construction works that constitute capital expenditures implemented for theassets held by SAR as of January 31, 2020 during the 8th fiscal period. Capital expenditures for the 8th fiscal periodamounted to 131,943 thousand yen and, when combined with the 82,084 thousand yen in repair expenses charged tothe same period, it totals 214,028 thousand yen in construction works implemented.
Name of real estate, etc.
(Location)
Funabashi Nishiura Logistics Ⅱ

PurposeWater proof construction

PeriodFrom: Nov. 2019
To: Jan. 2020

(Funabashi City, Chiba)

works on east, south andnorth side exterior walls

Funabashi Nishiura Logistics Ⅰ

Installation of emergency

From: Jan. 2020

(Funabashi City, Chiba)staircaseTo:

BEST WESTERN YOKOHAMA(Yokohama City, Kanagawa)Renewal of 2 elevators－

OthersFrom: Jan. 2020
To:

Jan. 2020
－

Total

－

Jan. 2020

Construction costs(thousand yen)

28,934

17,585
12,776
72,647
131,94338－

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

Property no.
Property name

OFC-01

OFC-03

OFC-04

OFC-05

Minami-Azabu

Honmachibashi

Nishi-Shinjuku

Shibuya Building

Tower

Matsuya Building

OFC-06Alphabet Seven

Shibuya
MK Building① Total operating revenue
from real estate leasing

96,950217,369

107,954

75,367

79,478

Lease business revenue

88,172

192,577

99,607

68,81473,938Other lease business revenue② Total operating expenses
from real estate leasing
Management fee

8,777

24,792

8,346

6,553

5,539

26,386

62,77135,362

20,105

14,1295,703

13,845

6,802

4,735

5,115

Trust fee

400

400

400

400

350

Utilities expenses

7,077

25,259

8,790

4,754

3,893

Insurance premium

116

358

129

99

45

Repair expenses

468

1,556

3,714

1,990

235

Property taxes

4,560

19,730

3,426

6,214

4,322

8,061

1,620

12,0991,910

168

70,563

154,598

72,591

55,262

65,348Others
③ NOI

(①－②)

④ Depreciation

11,55645,343

8,440

5,426

3,342

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

59,006109,255

64,151

49,83662,006⑥ Capital expenditures
⑦ NCF

(③－⑥)

Book value at end of the period

Property no.

Property name

-

-

258

7,801

-

70,563

154,598

72,332

47,46065,3482,962,948

5,860,272

1,820,838

1,841,780

2,092,186

OFC-08

OFC-09OFC-10

OFC-11

OFC-12

Nihonbashi

Amusement

Hamacho ParkMedia Gakuin

Building

HonkanAsahi Building

Hakata-eki
East Place

Higashi Kobe
Center Building① Total operating revenue
from real estate leasing

226,226

102,116

48,238311,330

Lease business revenue

208,203

91,437

48,238275,087

Other lease business revenue

18,022

10,679-36,24360,77326,002

12,542

119,299

15,948

7,985

824

26,551

400

400

400

400

19,325

7,185-② Total operating expenses
from real estate leasing
Management fee
Trust fee
Utilities expenses

35,342Not disclosed

Insurance premium

357

167

123

Repair expenses

7,053

1,884

68

Property taxes

16,195

6,801

4,299

29,147

Others

1,493

1,577

6,826

24,697

③ NOI

(①－②)

(Note)

656
2,504

165,452

76,11435,695

192,031④ Depreciation

26,119

7,391

2,837

32,806⑤ Operating income (loss)
from real estate leasing(③－④)

139,332

68,72332,858159,225⑥ Capital expenditures

12,02013,571

-

1,081

⑦ NCF

(③－⑥)

153,43162,54335,695

190,949

Book value at end of the period

6,330,182

2,316,816

1,458,794(Note) Not disclosed, because consent for disclosure has not been obtained from the tenants.

－

39

－

2,592,734

7,648,262

(Unit: thousand yen)

Property no.

OFC-13

RSC-01

Amusement
Property nameMedia Gakuin
Shinkan

RSC-02

RSC-05

RSC-06

Urban Park

Urban Park

Urban Park

Urban Park

Azabujuban

Daikanyama

Namba

Gokokuji① Total operating revenue
from real estate leasing

59,237

Lease business revenue
Other lease business revenue② Total operating expenses
from real estate leasing

187,268

50,69752,18755,027

176,407

49,20850,627

4,209

10,860

1,489

1,560

44,405

12,18915,368

8,556

2,585

4,603

11,293

Management fee

2,652

Trust fee

350

350

350

400

Utilities expenses

503

4,287

374

2,405

Insurance premium
Repair expenses

Not disclosed

Property taxes(Note)

Others

57

196

63

53

2,380

10,535

2,368

3,340

2,831

11,399

2,820

1,855

2,517

③ NOI
(①－②)

47,943④ Depreciation

4,852⑤ Operating income (loss)
from real estate leasing(③－④)

43,091⑥ Capital expenditures

1,019

⑦ NCF
(③－⑥)

46,923

Book value at end of the period

Property no.
Property name1,030,689

2,085,301

RSC-07

RSC-08

Urban Park

Urban Park

Kashiwa

Ryokuchi Koen

9,080

3,627

2,710

142,863

38,50736,81912,686

7,537

5,310

130,176

30,97031,508

3,257

615

-

139,605

37,89136,8196,384,104

1,513,317

1,506,326

RSC-09LGC-01

LGC-02

Urban Park Koenji

Iwatsuki Logistics

Yokohama Logistics① Total operating revenue
from real estate leasing

38,09458,38336,647

202,816

Lease business revenue

37,181

55,57534,294

187,713

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

913

2,808

2,352

15,103

12,65313,808

6,817

37,669

2,151

2,830

1,810

5,920

Trust fee

350

350

400

350

Utilities expenses

725

2,323

1,467

15,155

Insurance premium

85

119

36

275

Repair expenses

5,900

2,177

1,512

2,073

Not disclosed

Property taxes

2,951

3,578

962

13,728(Note)

Others

489

2,429

626

166

③ NOI
(①－②)

25,441

44,57429,830165,146④ Depreciation

7,143

7,842

2,479

46,544⑤ Operating income (loss)
from real estate leasing(③－④)

18,29736,732

27,350118,602⑥ Capital expenditures

4,268

5,119

-

1,627

⑦ NCF
(③－⑥)

21,17239,45529,830163,519

1,246,619

1,612,763

1,189,315

6,648,961

Book value at end of the period(Note) Not disclosed, because consent for disclosure has not been obtained from the tenants.
－ 40 －

3,767,829

(Unit: thousand yen

Property no.
Property name

LGC-03

LGC-04

Funabashi Logistics① Total operating revenue
from real estate leasing

260,597

Lease business revenue

241,793

Other lease business revenue

18,804② Total operating expenses
from real estate leasing
Management fee

Baraki Logistics

Tokorozawa Logistics

LGC-06

LGC-07

Funabashi Nishiura

Funabashi Nishiura

Logistics I

Logistics II

57,17911,308Trust fee
Utilities expenses

LGC-05400
17,047

Insurance premium397

Not disclosed

Not disclosed

Not disclosed

Not disclosed

Repair expenses

4,808(Note1)(Note1)(Note1)(Note1)

Property taxes

23,055

Other
③ NOI

162
(①－②)

203,418④ Depreciation

26,918⑤ Operating income (loss)
from real estate leasing(③－④)

176,499⑥ Capital expenditures

2,987

⑦ NCF

(③－⑥)

200,430

Book value at end of the period

7,812,120

Property no.
Property name

4,659,731

LGC-08
Matsubushi Logistics

1,353,894

2,959,872

857,919

HTL-01

HTL-02

HTL-03

HTL-04R&B Hotel Umeda

Smile HotelBEST WESTERN Tokyo

BEST WESTERN

East

Namba (Note2)

Nishikasai

Yokohama① Total operating revenue
from real estate leasing

65,30231,31984,60080,400

Lease business revenue

65,30231,31984,60080,400

Other lease business revenue

-

-

-

-

6,685

4,710

10,181

7,747

Management fee

742

660

1,200

1,200

Trust fee

350

550

400

400

4

-

-

-

② Total operating expenses
from real estate leasing

Utilities expenses
Insurance premiumNot disclosed

113

53

126

106

Repair expenses(Note 1)

-

1,111

461

772

5,450

2,281

7,970

4,705

23

53

22

561

Property taxes
Other
③ NOI

(①－②)

58,617

26,60974,41872,652④ Depreciation

9,786

12,225

11,84912,524⑤ Operating income (loss)
from real estate leasing(③－④)

48,831

14,38362,56860,128⑥ Capital expenditures
⑦ NCF

-

-

799

20,22758,617

26,60973,61852,425

2,121,325

1,682,845

3,855,577

3,271,906(③－⑥)

Book value at end of the period

2,733,177(Note 1) Not disclosed, because consent for disclosure has not been obtained from the tenants.
(Note 2) Operating revenue from real estate leasing of Smile Hotel Namba includes variable rents of 8,945 thousand yen.

－

41

－

(Unit: thousand yen)
Property no.
Property name

HTL-05

HTL-06

HTL-07

HTL-08

Hotel WBF Fukuoka

GLANSITBest Western Tokyo Hotel WBF Art Stay

Tenjin Minami

AKIHABARA

Nishikasai Grande① Total operating revenue
from real estate leasing

70,002

Lease business revenue

70,002Other lease business revenue-② Total operating expenses
from real estate leasing

6,796Management fee

990

Trust fee

400

Utilities expenses-

Insurance premiumNot disclosed

Not disclosed

Repair expenses(Note)(Note)

Property taxes

64

Not disclosed

25(Note)

5,293

Other
③ NOI

22
(①－②)

63,205④ Depreciation

10,857⑤ Operating income (loss)
from real estate leasing(③－④)

52,348⑥ Capital expenditures
⑦ NCF

Namba

-

(③－⑥)

Book value at end of the period

63,205

1,965,568

2,508,592

3,175,809

1,994,998(Note) Not disclosed, because consent for disclosure has not been obtained from the tenants.
OfficeResidence

Logistics facility

Hotel

Total

Total

total

total

Portfolio
total① Total operating revenue
from real estate leasing

1,352,983

482,516

887,758

477,4103,200,669

Lease business revenue

1,228,922

458,322823,769

477,4102,988,424

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

124,060

24,194

63,989-212,244392,534

116,536

210,388

49,976

769,435

89,701

25,19031,110

7,419

153,423

4,350

2,550

3,050

3,200

13,150116,754

12,08748,092

4

176,939

Insurance premium

2,130

612

1,438

592

4,773

Repair expenses

22,06828,21529,4292,371

82,084

Property taxes

98,90026,39977,10535,639238,044

Other

58,62721,48020,162748

101,019

③ NOI
(①－②)

960,449

365,979

677,370

427,433

2,431,233④ Depreciation

148,556

47,853

144,591

79,177420,178⑤ Operating income (loss)
from real estate leasing(③－④)

811,892

318,126

532,779

348,256

2,011,055⑥ Capital expenditures

35,622

14,28161,012

21,026

131,943

⑦ NCF
(③－⑥)

924,826

351,697

616,358

406,4072,299,290

35,955,507

15,537,748

30,793,506

20,576,624

102,863,386

Book value at end of the period

－

42

－

③ Other investment assets

Asset

Name of the securityno.

Type of asset

Quantity(Units)Book value

Fair value

Unrealized(million yen)(million yen)gain or

Unit
price

MEZ-04

Star Asia Mezzanine Loan

Loan

Debt Investment Series 4

receivable－－

Amount

300

Unit
price
－

loss
AmountRemarks(million
yen)

300

－

(Note 1)
(Note 2)

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

－

43－