"Financial Results for the 11th Fiscal Period Ended July 2021"

Star Asia Investment Corporation

上場から 5 年、 これからの 5 年Star Asia Investment Corporation(Securities CODE 3468)
Star Asia Investment Management
スターアジア不動産投資法人（3468）
スターアジア投資顧問株式会社

Contents

Characteristics of Star Asia Investment Corporation (SAR)

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

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

Executive summary2

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

2.

Actual and forecasted distribution

4

3.

Operating results for the 11th fiscal period ended July
2021

9

4.

Initiatives on ESG

16

5.

Offering summary

22

6.
7.

Progression Status of Mid-term plan
Appendix27
32

Investment policy

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

Achieving income
stability and growththroughdiversification ofasset type

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

11. Executive Summary2

1. Executive Summary
11th Fiscal Period Results Summary◆ Distribution Per Unit
Forecast(Announced Mar. 2021)

1,455 yen (53 yen ※)◆ Forecasted Distributions Per Unit
Actual results

1,462◆ NAV per unit

11FP (as of July 2021)
57,994 yen◆ Summary of Operational results by Assets Type

Office18 Properties (Total leased area:79,201.54㎡)
Occupancy rate： 95.8% (10FP) ⇒ 93.1% (11FP)
Cancellation：13 Tenants (5,545.93㎡)
New contract：14 Tenants (3,424.21㎡)

Retail

3 Properties (Total leased area: 96,849.64㎡)
Requests received for reduction/ exemption of rents：4
Tenants (312.92㎡) / None accepted
Cancellation：2 Tenants (333.21㎡)

Residence

15 Properties (Total leased area: 89,602.30㎡)
Occupancy rates at end of period of Total： 94.4 %Occupancy rates at end of period of Single Type： 79.8 %Occupancy rates at end of period of Family Type： 95.5 %Logistics

Hotel

Forecast for Fiscal Period
ending January 31, 2022

JPY 1,455 /unityen (25 yen ※ )（※）Utilization of Internal reserves

10FP (as of Jan 2021)
57,040 yen

Forecasts for 12th / 13th Fiscal Period

9 Properties (Total leased area:143,264.72㎡）
11FP/Renewal 1Tenant (Same terms and conditions)
12FP/Re-sign 1Tenant (Rent up)、Renewal: 1 Tenant
8 Properties (Total leased area: 23,819.44㎡)
No accrued or unpaid rents.

JPY 1,476 /unit

Forecast for Fiscal Period
ending July 31, 2022

◆ As long as the effects of COVID-19 persist, our policy remains to utilize negative
goodwill to offset any operational weakness and maintain distribution level.

ESG Initiatives◆ Participate in the FY2021 GRESB Real Estate Assessment～ Results will be announced in mid-October◆ Disclosure of achievement status related to E (=environment) numericaltargets◆ Change of Asset Management Fee Structure

4th Public Offering Summary◆ 4th Public Offering Summary• Number of new investment units issued: 115,000 units(Total no. of investment units issued : 1,789,389 units)• Dilution ratio: 6.9 %• Public offering type Greenshoe option: 16,743 units (14.5% of newly issued
investment units)• Total amount procured through pubic offering: 6.36 billion yen• New borrowings: 7.0 billion yen (Invited new lenders, expanded bank formation)◆ Assessment of the Public Offering• Demand multiples were: institutional investors (domestic: 2-3 times, abroad:over 15 times), and retail (around 5 times), and the average demand was highat approximately 9 times.
• There were several famous domestic and foreign institutional investors
who had not participated in past public offerings and subscribed for the firsttime, and we were able to have a real feel of expansion of the investor base.

32. Actual and forecasted distribution

4

2. Actual and Forecasted Distribution (1)11FP Distribution per unit
◆ Distribution per unit (DPU) for the fiscal period ended July 2021 was +0.5% compared to forecast, as the portfolio NOI was higher than initially
expected. For FP12, the forecasted amount (announced in March 2021) is expected to be maintained by utilizing internal reserves, and for FP 13,
a 1.4% increase (compared to FP12) is anticipated assuming that occupancy rates will gradually increase.

11FP

12FP

13FP

(Ended Jul 2021)－Actual－(Ending Jan 2022)－Forecast－(Ending Jul 2022)－Forecast－

JPY

1,462

JPY

1,455

JPY

Utilization of Internal reservesof 108 yen

Up 7 yen, a 0.5％ increase
compared to forecast

1,476

Utilization of Internal reservesof 50 yen

Utilization of Internal reservesof 25 yen

≪Keeping DPU Stable≫◼ Set up minimum DPU by utilizing
Internal reserves as long as
impacts from Covid-19 persist
From 13FP

1,476

Minimum DPU JPY

(yen）
1,600

1,500

38

8

48
5

28

38
35

1,400

1,300

1,455
1,200

1,100

<Rent
revenues/exp
enses >
Increase oforiginal state
restoration fee
revenue<internal
reserves>
Dividend a partof the upside ofnet income

1,462<Expense
related rent
business>
・Assumeddecrease inoccupancy
rates of offices
and residences.
・Increase inleasing activity
costs.

1083

63<Non operating
expenses>
Increase ofrefinancing costs<internal
reserves>
・In addition toreversal of RTA,
1,455
made
distributions
from profits
carried forward<Rent
revenues/expe
nses >
newly
acquired 7
properties tofully contribute

58<Non operating
expenses>decrease ofrefinancing costs

27<internal
reserves> ・madedistributions
from reversalof RTA

1,476

1,000

5

2. Actual and forecasted distribution (2)Operating Results (Summary) for the 11FP, and Forecast Assumptions for 12FP and 13FP
◆ For the fiscal period ended July 2021, while some asset types were affected by COVID-19, overall impact on income was limited.
◆ Although slightly prolonged downtime was seen for some offices and single-type residences, we have assumed that occupancy
rates will gradually increase going forward.

•

Office•••Retail••••Residence••

Logistics

Hotel

•

•
•
•

11FP (ended Jul. 2021) - Actual

Assumptions for 12FP, 13FP

Cancelled floor area exceeded the newly contracted floor area, leading tooverall occupancy rates seeing a slight decline.
(End of 10FP： 95.8% ⇒ End of 11FP：93.1%)
There were also a few tenants who cancelled due to weak businessperformance given the effects of COVID-19.
Of the 14 newly contracted tenants, for 10 tenants, rent increases incomparison to the former tenants were realized.

◼ Downtime for vacant floor space has been set for slightly
longer periods.
◼ Although we anticipate that occupancy rates should
gradually increase, for new contracts, we have assumed
conservative assumptions.
◼ No rent increases assumed upon contract renewals.

For tenants whose lease periods matured, all of them (other than cancelledtenants—one for which a new tenant has been found) have renewed theleases under the same terms.
There was a limited number (four) of new requests for rent reductions/
exemptions due to the impact of COVID-19.
(No such requests were accepted during FP11)
During FP11, there were no accrued rents, and revenues remained stable.

◼ Most tenants handle daily necessities--and there is only
one tenant where discussions are being held for rent
reduction/exemptions--the impact is expected to be limited
even if the request is accepted.)◼ Other than the single tenant expected to move out,
revenues are assumed to be at the same level as the FP
ended July 2021.

The occupancy status was satisfactory for family type residences.
(Occupancy rates: End of FP10 96.6% ⇒ End of FP11 95.5%)
Single-type residences showed a trend of prolonged downtime aftercancellations.
(Occupancy Rates: End of 10FP 83.2% ⇒ End of 11FP 79.8%)
Of the 133 newly contracted residential units, we increased rent for 80
units (compared to the rent of the former tenants)◼ For family type residences, both rents and occupancy
rates have been assumed to be at the same levels as
actual performance for the FP ended July 2021.
◼ For single type residences, increase in occupancy rates
have not been anticipated and have been set atconservative levels.

Contracts with tenants which were renewed during FP11 were all renewed
under the same terms as before.
For the two tenants whose contracts were expected to be renewed or
newly signed during FP12, one tenant was newly signed with increased
rent, and the other tenant was renewed under the same terms as before.

◼ We have assumed that revenues will remain stable.
◼ We will focus efforts on negotiations with two tenants
whose contract periods mature in FP13 (businessperformance is expected to be maintained at current
levels.)The “KOKO HOTEL Osaka Namba” is expected to open in December 2021
For the other hotels, fixed rents were received from all tenants.
As the effects of COVID-9 is continuing, some hotels have temporarilyclosed down.

◼ Rent revenues from “KOKO HOTEL Osaka Namba” areset at zero.
◼ For the other hotels, it has been assumed that fixed rents
will be received as agreed.
62. Actual and forecasted distribution (3)Factors for increase/decrease compared with forecast/actual results for the 11FP
◆ Achieved increase in NOI amounts due to increase in rent revenues of held properties and focusing on cost reductions.
◆ Of the increase in NOI amounts excluding unexpected fee revenues from original state restoration is planned to be distributed in addition to
the initial forecast amount. (DPU (vs forecast) ＋7 yen, increase by 0.5%).
(Unit: million yen)
11 FP (ended Jan.
2021) forecast*

11 FP (ended Jan.
2021) ActualComparison with forecast

Factors for the increase/decrease

Mezzanine

24

24

SGA

518

532

+14

+0.9% ＜Revenues from leasing business＞
Office： prolongation of downtime was observed
Retail： realized attracting tenant earlier than expected . +4.1
+0.7%
million yen (Kishiwada)△1.4% Residence： prolongation of downtime was observed+0.0%+0.0% ＜Other＞
Original state restoration fee revenue +54 million yen+13.5% Penalty charge revenue +3.9 million yen△0.8% Renewal fee revenue +6.9 million yen
Key money revenue +4.9 million yen+1.6%△0.4% <Expenses of leasing business>
Repair costs +26 million yen+1.9%
Utility costs △22 million yen
Leasing costs △16 million yen
+2.7%

2,788

2,838

+49

+1.8%

-

3

+3

-

Lease business revenue

5,488

5,536

+47

Office rent

1,819

1,807

△ 11

Retail rent

784

790

+5

Residence rent

1,038

1,023

△ 14

Logistics rent

909

909

-

Hotel rent

424

424

-

Other
Expenses related to rent business(Depreciation is excluded)
NOI

513

582

+69

1,569

1,556

△ 13

3,919

3,980

+61

635

633

△2

3,283

3,347

+63

Depreciation
Rent revenues/expenses

Operating income
Non-operating income

△0.7%

+0

439

434

△5

△1.2%

Ordinary income

2,349

2,407

+58

+2.5%

Income before income taxes

2,349

2,407

+58

+2.5%

Non-operating expenses

taxes

0

0

-

+0.0%

2,348

2,407

+58

+2.5%

Cash distribution per unit

1,455 yen

1,462 yen

+7 yen+0.5%

FFO per unit

1,782 yen

1,815 yen +33 yen+1.9%

Net income

Balance of internal reserves

9,048(Reference) Net income per unit
(Yen per unit)

1,402 yen

9,095

+46

+0.5%

1,437 yen +35 yen+2.5%（*）Announced in 10th FP closing of accounting report (March 16, 2021)

7

2. Actual and forecasted distribution (4)Forecast of business results for the 12FP ending January 2022 / the 13FP ending July 2022
◆ Seven new properties acquired through the public offering executed in August 2021. The newly acquired properties expected to fully
contribute to the FP ending July 2022.
◆ Within the existing held portfolio, a gradual recovery of occupancy rates is anticipated mainly for office properties.
(Unit: million yen)

11 FP (ended
Jan. 2021)
Actual(Ａ)

Forecast forthe 12 FP
ending Jan
2022 (B)

Lease business revenue

5,536

5,873

①

+337

Expenses related to rent business(Depreciation is excluded)

1,556

1,674

②

+118

NOI

3,980

4,199

633

684

Depreciation

Increase/dec
Major factors for the increase/decrease
rease (B-A)
Increase / decrease factors for 12FP
(compared to last forecast)(1)

Revenues from leasing business・Impact of acquired 7 assets +321

+218 million yen③

Forecast forthe 13FP
ending Jul
2022(C)

Increase/decrease (CB)

Increase/ decrease factors for 13FP

5,931

①

1,650

② △23 (1)Revenues from leasing business・Impact of acquired 7 assets +53

4,280

・Reduction in original state+51 restoration fee revenues △48 million

Major factors for the increase/decrease697+57 (compared to forecast for the 12 FP)

million yen
・Office rent revenues +73 million yen
・Utility fee revenues △21 million yen+13 ・Penalty revenues △50 million yen

+81

yen
Rent revenues/expenses
Mezzanine

3,347

3,514

+167

24

24

+0

・Penalty charge revenue +50
million yen

3,582
24

(2) Leasing business expenses
SGA

Operating income

532

550

+17

・Impact of acquired assets +54
million yen

2,838

2,988

+149

・Repair expenses △29 million yen

562
3,044

(2)Expenses of leasing business・Impact of acquired 7 assets +29
million yen+0 ・Utility expenses △12 million yen
・Leasing related costs △33 million yen
・Loss on assets retirement △12million
+11
yen

+67

+55 (3)Temporary decrease in expenses due

・Utility costs +31 million yen△3

Non-operating income

3-

Non-operating expenses

434

576

2,407

2,412

+4

0

0

-

2,407

2,411

to refinancing

・Leasing expenses +28 million yen

・Loss on assets retirement +12

Income before income taxes

Taxes
Net income④+141 million yen(3)Depreciation
Impact of acquired 7 assets +37
million yen(4) Non-operating expenses
Temporary increase in expenses+4 due to refinancing and financing

490

③ △86

2,554

+141

0

-

2,553

+141

1,476

+ 21

associated with public offering
Cash distribution per unit

1,462

1,455

△7

8

3. Operating results for the 11th fiscal
period ended July 2021

9

3. Operating results for the 11th fiscal period ended July 2021 (1)- Occupancy rate status ◆ Although a slight prolongation of downtime was observed for offices and single-type residences, the occupancy rate for the portfolio on thewhole was stable.

100.0%

Hotel, 100.0%
Retail, 98.8%

98.0%

Logistics, 97.8%
Total, 96.6%

96.0%

Residence, 94.4%

94.0%
Hotel 1 tenant leave
92.0%

Office, 93.1%

Logistics 1 tenant leave

商業
RetailResidence
住宅

86.0%

Logistics
物流施設

ホテル
Hotel

全体
Total

8FP
Aug
Sep
2019 2019

9FP

10FP

Oct Nov Dec Jan Feb Mar Apr May Jun Jul
Aug
Sep
2019 2019 2019 2020 2020 2020 2020 2020 2020 2020 2020 2020

8FP
(Jan 2020)

9FP(Jul 2020)

10FP(Jan 2021)

Oct
2020

State of
Emergency

オフィス
OfficeState of
Emergency

88.0%

State of
Emergency

State of
Emergency

90.0%

11FP

Nov Dec Jan
Feb Mar Apr May Jun Jul
2020 2020 2021 2021 2021 2021 2021 2021 2021
11FP

Feb 2021

Mar 2021

Apr 2021

May 2021

Jun 2021

Jul 2021

Office

98.3%

98.6%

95.8 %

95.0%

96.4%

94.5%

94.0%

92.1%

93.1%

Retail－－98.8 %

98.8%

98.8%

98.8%

98.8%

98.8%

98.8%

Residence

97.4%

95.4%

95.7 %

95.6%

96.4%

95.1%

94.6%

94.3%

94.4%

Logistics

97.8%

97.8%

97.8 %

97.8%

97.8%

97.8%

97.8%

97.8%

97.8%

Hotel

100.0%

100.0%

91.3 %

91.3%

100.0%

100.0%

100.0%

100.0%

100.0%

Total

98.1 %

97.1 %

96.9 %

96.7%

97.6%

97.0%

96.8%

96.4%

96.6% 10

3. Operating results for the 11th fiscal period ended July 2021 (2)- Office - Status of rent gap and change in tenant as of the end of the 11FP
Status of changes to tenants in the fiscal period ended July 2021
Number oftenants<New contract＞
Rent upSame rent
Rent down
Other＜Renewal＞
Rent up
Rent down
RenewalCancellation

20000 ㎡

15000 ㎡

10000 ㎡

Termination in thecontract period

5000 ㎡◼

0㎡

Area(㎡)

8000 ㎡

14

3,424.21

10

2,571.10 Monthly rent 20.0% up

2530.971233.64 Acquiring tenants with market rent1

88.5 Previous rent is unknown

53

18,135.4411,512.46 Monthly rent 10.0% up

1Transition of entering and leaving of tenants (by area & number of cases)

Area of Move in
入居面積12,857.75

63,638.92

7

1,907.01

Area of Move out
退去面積6000 ㎡
4000 ㎡
2000 ㎡(7)126.31 Monthly rent 4.0% down45※（ ） Number of tenants

0㎡

(19)
(10)

(7)

(13)

(8)

(14)

(7)

(13)

(13)

第8期
8FP
9FP
2020年1月期
Jan 2020
Jul 2020

10FP
Jan 2021

11FP
Jul 2021-2000 ㎡

During the 11th fiscal period, there were 14 new tenant entries (3,432.21㎡), of which for
10 tenants, increase in rent in comparison to that of the former tenant was achieved(+20.0%).

◼ Attracting of new tenants is continuing, and a gradual increase inoccupancy rates is anticipated going forward.

-4000 ㎡
-6000 ㎡

7FP
Jul 2019-8000 ㎡(＊)The ratio has been calculated using the gross area where tenant changes occurred within the 11th fiscal period (21,559.65㎡) as the denominator.

Change in tenants in the 11FP (＊)＜Diversification status of rent gap＞
51.3%
10%以上,
Rent
gap
43.5%
10% or more

31.4%
10％未満0％以
Rent gap 0% to less
上, 31.4%
than 10Contract Rent Period of Office Portfolio＜Rent per Tsubo＞

Rent gap exists at 776
yen/tb (5.6%) of thetotal

25000 ㎡

Rent gap 0% to
レントギャップ0%以上10%未満

less than 0%less than 10%

14,567¥14,567 /坪
yen / tb
13,791/坪¥13,791
yen / tb

10% or more

54

58

57

10000 ㎡

13

5000 ㎡

25.1%
0%未満,
Rent gap
less than 0%
25.1%
Contracted Rent
Unit Price

Rent gap
レントギャップ10%以上

72

20000 ㎡

15000 ㎡

Rent gap exists at
74.9%（based on floorarea) of the total

Rent gap
レントギャップ0%未満

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

0㎡

第12期
12FP
2021年7月期
Jan 2022

第13期
2022年1月期
13FP
Jul 2022

第14期
2022年7月期
14FP
Jan 2023

第15期
15FP
2022年8月
Jul 2021

第16期以降2023年1月期以降
16FP
or after11

3. Operating results for the 11th fiscal period ended January 2021 (3)- Retail Tenants Breakdown by Business Type （as of end of July 2021）

Status of commercial facilities in 11FP
Averageoccupancy rates
during period

Occupancy
rates at end of
periodLa Park Kishiwada

98.9 %

99.0 %

Suroy Mall Chikushino

97.6 %

97.6 %

Seiyu Minakuchi

100.0 %

100.0 %

Total

98.7 %

98.8 %

4 Tenants

No. of requests received for
reduction/exemption of rents
during the 11th fiscal period.

(None accepted)

Tenants leaving during the
11th fiscal period

2 Tenants
333.21 ㎡

Impact on revenues in 11th
fiscal period.

312.92 ㎡

less than JPY 450K

Tenants Breakdown by
Business TypeArea (㎡）Daily necessities (Food)

39,782.16

6

Daily necessities (Clothing)

3,726.98

11

Daily necessities (Others)

23,467.87

Other product sales

12,622.03

13

Clinic168.602

Private tutoring schools

84.39

0.1 %

1

Child care and day care

0.00

0.0 %

0

Sports clubs

2,466.13

2.6 %1

Food and beverage

1,302.31

1.4 %

12

Entertainment andamusement

8,622.82

9.0 %3

Other services

3,422.17

3.6 %

18

95,665.46

100.0 %

77

Total

Number of leaseagreements

83.4 %

10➢ Many of the tenants handle daily necessities(83.4% of the total floor space), and it isbelieved that the impact of spreading of
COVID-19 on business performance will belimited.
➢ During the 11th fiscal period (ended July2021), there were four requests received
from tenants to reduce or exempt rents(none were accepted, one case is still undernegotiation).
➢ During the 11th fiscal period, two tenants
moved out (333.21㎡) for which one new
tenant has already been found.
➢ One tenant expected to move out during the12th fiscal period (1,071.09㎡)➢ Going forward, while the impact of COVID-19
remains, if requests for reduction or
exemption of rents is received from tenants,
we intend to sincerely respond taking into
consideration the business condition,
financial condition, and the possibility ofutilizing public support measures etc. foreach individual tenant.

Asset management which contributes to the revitalization of the local community<La Park Kishiwada>
Making efforts to revitalize the local community, by cooperating with other business operators within the region and the municipal government,
and facilitating communication with the neighboring society.
◼ In the elementary school classcalled “Life Environment
Studies”, social observation
event “Town Exploration” wasconducted as a study to discover
the splendor of the local region.

◼ As an event “for making thesociety brighter” advocated by
the Ministry of Justice, Legal
Affairs, a Correction Exhibition(which displays and sells
products manufactured in jails
through Japan) was held.
12

3. Operating results for the 11th fiscal period ended July 2021 (4)- Residence ◆ Although occupancy rates for the three single type properties have decreased due to the tendency for prolonged downtime during covid, theoverall impact remains limited given the overall proportion of the three properties is low.
◆ In August 2021, 4 mainly family type residential properties in the Tokyo area were acquired, and stabilization and improvement of income
is anticipated.

4 residential properties were incorporated in August 2021

Transition of occupancy rates by individual properties.
State of Emergency 1
100.0%

95.5%

95.0%

Total
全体
ファミリータイプ
FamilyType
SingleType
シングルタイプ

90.0%
85.0%

94.4%
79.8%

80.0%

2021年7月
Jul
2021

2021年6月
Jun
2021

2021年5月
May
2021

2021年4月
Apr
2021

Mar
2021
2021年3月

Feb
2021
2021年2月

11FP

Jan
2021
2021年1月

Nov
2020
2020年11月

2020年9月

2020年10月

Oct 2020

2020年8月

Sep 2020

2020年7月

Aug 2020

2020年6月

Jul 2020

2020年5月

Jun 2020

2020年4月

May 2020

2020年3月
Apr
2020

2020年2月
Mar
2020

2020年1月
Feb
2020

2019年12月
Jan
2020

2019年11月
Dec
20192019年10月
Nov
2019

Oct
2019
2019年9月

Sep
20192019年8月

10FP

9FP

Dec
2020
2020年12月

8FP
75.0%

Transition of new contracts and cancellations of single-type residences
Cancellation
解約面積
area

New
contract
新規面積
area1600.00 ㎡

Cancellation
解約件数
number of tenantsNew
contract
新規件数
number of tenants

1400.00 ㎡

1200.00 ㎡

60tenants
50tenants

800.00 ㎡

40tenants

600.00 ㎡

30tenants

400.00 ㎡

20tenants

200.00 ㎡

10tenants

0.00 ㎡

0tenants

8FP
8期
2020/1
Jan 2020

9FP
9期
Jul
2020
2020/7

10FP
10期
Jan
2021
2021/1

2020年7月

11FP
11期
2021/7Jul
2021

96.0 %◼ The assumed rents for new tenants

Property name

The assumed rents
for new tenants

The current rent
levels of existing
tenants

70tenants

1000.00 ㎡

7FP
7期
2019/7
Jul 2019% of units with at least 30m2
exclusive space➢ Assets with expectations for internal growth in terms of rent gap (thedifference between the current rent levels of existing tenants (Note 1) andthe assumed rents for new tenants(Note 2) which exceeds the rent levelsof existing tenants)

90tenants
80tenants◼ During the fiscal period ended July 31, 2020, there were many
cancellations of residences and new contracts failed to increase,but tended to recover in the 10th fiscal period.
◼ Continued to focus on leasing of single-type residences.

➢ Selective investment in properties locatedin Tokyo area with convenient access,which has been designated as a prioritizedinvestment area by SAR

Breakdown of exclusive space perunit for Assets to be Acquired (4residence properties)➢ Some properties have rent gap※singles-type housing : UP Namba, UP Gokokuji, UP Koenji
1800.00 ㎡➢ Acquisition mainly of properties with large
occupancy areas, which consist mainly of
residential units with an occupancy area of
30 ㎡ or more, and these assets have had andare expected to have strong demand andstable operations even under COVID-19
pandemic

Urban Park Ryogoku

8,000 yen/tsubo

7,437 yen/tsubo

Urban Park
Mizonokuchi

8,467 yen/tsubo

8,446 yen/tsubo

Urban Park
Miyamaedaira

9,301 yen/tsubo

9,294 yen/tsubo

Urban Park Tsurumi

6,500 yen/tsubo

5,675 yen/tsubo

13

3. Operating results for the 10th fiscal period ended July 2021 (5)- Logistics / Hotels Logistics Diversification of Current Contract Renewal Period (based on floor area)
11FP (ended July 2021)
Contract period expired for 1 tenant◼ Lease contract renewed under the sameterms as before.
12FP (ending Jan. 2022)
Contract period to expire for 2 tenants◼ For 1 tenant, rent increase has been
agreed, and a new contract has been signed
under a fixed-term building lease.
◼ For the remaining tenant, lease contract
renewed under the same terms as before.

（㎡）
70,000.00※（ ） Number of tenants（5）

60,000.00
50,000.00
40,000.00

（3）

（2）

（１）

30,000.00
20,000.00

（2）

（2）

10,000.00
0.00
12期
12FP
Jan 2022

13FP (ending July 2022)◼ To be negotiated

13期
13FP
Jul 2022

14期
14FP
Jan 2022

15期
15FP
Jul 2023

16期
16FP
Jan 2024

17期以降
17FP
or afterHotel Transition of gross rent amounts (index)/ rent systems/ causes of rent increases and decreases<Actual results for 11FP and financial
performance forecast assumptions>◼ In the 11FP (ended Jan 2021), fixed rents
were received (none in arrears)◼ ”KOKO HOTEL Osaka Namba” expected
to open in mid-December 2021. No rent
revenues have been assumed from thehotel during 12FP and 13FP.
◼ For the remaining seven hotels, it has been
assumed that fixed rents are received asagreed with the tenants.
◼ Best Western Yokohama has decided toaccept COVID19 patients with mild
symptoms as a recovery accommodation
facility.

Hotel rent Actual / Forecast (Indexation) Fixed
rent
■予想

固定賃料比率
Forecast

120.0

Floating
rent
変動賃料比率

8.2

1.9

100.0

101.2

95.9

91.5

91.7

92.0

91.7

2019年7月期
7FP
Jul 2019
Actual

2020年1月期
8FP
Jan 2020
Actual

2020年7月期
9FP
Jul 2020
Actual2021年1月期
10FP
Jan 2021
Actual2021年7月期
11FP
Jul 2021
Actual12FP
2022年1月期
Jan 2022
Forecast

13FP
2022年7月期
Jul 2022
Forecast

0.4

100.0
80.0
60.0
40.0
20.0
0.0

※The index has been prepared by calculating fixed rent on the date of Jul 201914

3. Operating results for the 11th fiscal period ended July 2021 (6)- Financial standing –◆ Prolongation of the average borrowing term achieved through new borrowings and refinancings, and the ratio of fixed rate borrowings increased.
◆ Since 11FP, 3 new banks were invited, and the bank formation was expanded (Lenders: increased to 15 banks (as of end of August 2021)

Bank formation (as of August 31, 2021)

Main financial indicators
10FP
Jan 2021

11FP
July 2021

as ofAugust 31, 2021

LTV

45.9 %

46.0 %-

Balance of borrowings

82,440
million yen

82,440
million yen

89,440
million yen

Long-term debt ratio

97.4 %

97.4 %

100.0 %

Average remaining period
to maturity

2.2 years

2.3 years

3.0 years

Average borrowing period

4.5 years

4.7 years

5.0 years

Average interest rate
(note1)0.72 %

0.75 %

0.75 %

Fixed interest rate ratio

79.2 %

81.3 %

85.1 %

Lender

Ratio

Sumitomo Mitsui
Banking

LenderRatio

The Bank of
26.9%
Fukuoka
The Bank of
19.3%
Yokohama,Ltd.
Mizuho Trust &14.7%
BankingMizuho Bank

1.9%

1.7%

Balance ofborrowings

Shinsei Bank

89,440Sumitomo Mitsui
Trust Bank

11.1% The Kiyo Bank, Ltd.

0.6%

Aozora Bank

9.8% San-ju San Bank

0.6%

Resona Bank

6.5%

million yen

The Nishi-Nippon
City BankThe Dai-ichi Life
Insurance
Fukoku Mutual Life
2.8%
Insurance Company

Minato Bank

2.2%

0.9%

0.6%
0.6%

Total 15 Lenders(＊) The interest rates shown take into consideration the effects of interest rate swaps (fixing of interest rates).

Diversification of repayment dates (as of August 31, 2021)(mln.）■Fixed■Adjustable

14,000Credit Ratings
Rating Agency

Rating & Remarks

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

Long-term Issuer RatingA (Stable)

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

Issuer Rating
A－ (Stable)

12,00010,0008,000

Submission of Shelf Registration Statement of Investment Corporation Bonds

6,000

11,850
9,790

9,750

4,000

8,500

7,700

5,600
2,000
0

8,100

7,300

7,050

5,960

4,840

3,000

0

0

0

12FP
13FP
14FP
15FP
16FP
17FP
18FP
19FP
20FP
21FP
22FP
23FP
24FP
25FP
26FP
(2022/1) (2022/7） (2023/1） (2023/7） (2024/1） (2024/7） (2025/1） (2025/7） (2026/1） (2026/7） (2027/1） (2027/7） (2028/1） (2028/7） (2029/1）

Issuance of Investment Corporation Bonds being considered in order to diversify funding
methods, extending the repayment dates of interest-bearing debts, and increasing the ratio of
fixed rate liabilities.
Scheduled Amount to be
Issued100 billion yen

Scheduled Issuance
Period of the Bond

2 years from the effective date of shelf registration statement(From February 2, 2021 to February 1, 2023)

15

4. Initiatives on ESG

16

４. Initiatives on ESG (1)E (Environment) related numerical goals and ESG promotion system◆ As a part of ESG related efforts, we participated in the FY2021 GRESB Real Estate Assessment. Results to be announced in October 2021.
◆ In order to strengthen ESG related efforts, further strengthen cooperation with sub-sponsors (Nippon Kanzai and Tokyo Capital Management)

ESG promotion system<ESG Policy> introduction Our Company, as a member of the Star Asia Group, shares its
Investment Philosophy and Guiding Principles. Furthermore, as the asset management company
for Star Asia Investment Corporation, we engage in the real estate investment managementbusiness while giving consideration to the environment, society, and governance (hereinafter,
collectively referred to as “ESG”) in order to enhance corporate value and exert comprehensivecompetitiveness while pursuing long-term sustainability and recognizing the role Star Asia
Investment Corporation has been given in society in accordance with our basic philosophy of"Client First".

ESG Policy
1

Action towards Climate Change

2Consideration towards Resource Circulation, Water Use, and Biodiversity

3

Pursuit of Health, Safety, and well-being

4

Securing and Developing Human Capital

5

Stakeholder Engagement

6

Establishing and Organizing a Governance System

New organization of the asset management company◼ The Asset Manager’s ESG promotion system centered on the Sustainability
Promotion Division (Primarily involving E (Environment) matters)
The Asset Manager’s
Sustainability
Promotion Division
Executive officer in chargeof sustainability
General Manager of
Sustainability
Tetsuya Makino■ESG initiatives• Setting of goals primarily focused on
E (Environment), process
management, and result verification• Participation in GRESB Real Estate
Assessment■Optimization of capital expendituresand repairs expenses• Examination of capital expendituresand repair expenses• Selection of equipment and materials
with consideration for impact onrevenue pursuant to ESG Policy andSustainable purchase policy

Nippon Kanzai(Sub sponsor)
Supports SAR to achieve numericaltargets (provides advice related todeveloping various data and measures toreduce environmental burdens)<E (Environment) related support>■ New Business & Corporate Branding
Dept. (20 employees)• Institution with certification for
CASBEE• Environment-related consulting
services■ East Japan Engineering
Management Center (30 employees)■ West Japan Engineering
Management Center (24 employees)• Energy-related services• Environmental assessment services

Shareholder’s Meeting
Corporate Auditor
Bord of Directors Meeting
Sustainability Promotion
Committee

Compliance Committee
Investment Committee
President and CEO
Compliance Officer

Investment Management
Division

Sustainability Promotion
Division

Tokyo Capital Management (129 employees) (Sub sponsor)
After the Merger, Tokyo Capital Management (TCM) provides one-stop
service for asset management + property management
TCM helps developing long-term repair plans for SAR’s portfolio assets together
with Nippon Kanzai

Finance Management
Division

Aim to achieve E (Environment) related goals17

４. Initiatives on ESG (2)E (Environment） related Numerical Goals and their Achievement Status◆ Although the stagnation of economic activities due to COVID- 19 is a factor, both GHG emissions and energy consumption were reduced.
◆ We will aim for continued reduction by considering introducing highly efficient equipment and low carbon equipment at times of facilities
renovation and renewal.

E (Environment) Related Numerical Objectives and Actual Performance
GHG

Unit

GHG emissions

t-CO2

Scope 1

t-CO2

Scope 2t-CO2

GHG emissions intensity
Reduction rate (intensity)

t-CO2/㎡

Base year（2019）
23,154.05

2020
ActualTarget Year
(2030)

16,804.50-

1,968.71

1,129.44-

21,185.34

15,675.06-

0.057120.04057

GHG emissions intensity(t-CO2/㎡)
0.06000

0.051400.05000-▲ 29.0%▲ 10.0%

Energy Consumption

Unit

Base year（2019）

2020
ActualTarget Year
(2030)

0.02000

Crude oil equivalent usage amountkL

11,220.81

9,156.34-

0.00000

Crude oil equivalent usage per unit

kL/㎡

0.02768

0.022100.02491

Water Resources%-▲ 20.1%▲ 10.0%

Unit

Base year(2019)

2020
ActualTarget Year
(2030)

Clean water usage㎥

329,687.35

220,847.18

Clean water usage intensity㎥/㎡

0.81330.5331≦ 0.8133

Reduction rate％-

▲ 34.4%

±0%

Waste

Unit

Base year(2019)

2020
ActualTarget Year
(2030)

Reduction rate: 29.0%
0.057120.04000%

Reduction rate

Goal: By year 2030, reduce by 10% from base year.

0.04057

0.03000

0.01000
2019年度（基準年）

Energy consumption intensity
Goal: By year 2030, reduce by 10% from base year
(kL/㎡)

0.03000
0.02500
0.02000

Waste emissionsｔ

2,693.27

1,656.50-

Coverage rate

%

69.1%

65.1%

-

Waste emissions intensity

t/㎡

9.61

6.14

Reduction rate%-

▲ 36.1%

2020年度Reduction rate: 20.1%
0.02768
0.022100.01500
0.01000≦ 9.61±0%

The calculation year is from April to March of the following year.
The base year is calculated based on managed assets for full year and with 100% coverage rate.
(including the former Sakura Sogo REIT).
GHG is calculated based on market standards.
The intensity denominator uses the total area taking into account the number of months in operation.
The reduction rate is the ratio compared to the base year.

0.00500
0.00000
2019年度（基準年）

2020年度18

4. Initiatives on ESG (3)Initiatives for E (Environment) and S (Society)◆ As of the end of July 2021, DBJ Green Building Certification (note 3)had been obtained for 9 properties.
◆ As S (Society) related initiatives, during the FP ended July 2021, Employees Satisfaction Surveys and Tenants Satisfaction Surveys
were conducted.

Initiatives for E (Environment)

Signing of green lease contracts (Note 4)◆ Received environmental certification

9◆ Signing of green lease contracts (as of May 31, 2021)

properties

Percentage of total floor area

DBJ green building
certification

Property name

Buildings with the excellent
level of "environmental andsocial awareness"

37.3

Asset type%

Total floor
area

Baraki Logistics

Logistics

12,471.50 m2

Honmachibashi Tower

Office15,407.83 m2

La Park Kishiwada

Retail

65,663.02 m2

Urban Park Tokiwadai
Koen

Residence

15,708.08 m2

Urban Park Mitsuike
Koen

Residence

10,918.37 m2

Iwatsuki Logistics

Logistics

29,729.72 m2

Seishin Building

Office7,624.66 m2

Seiyu Minakuchi

Retail31,829.71 m2

Urban Park Daikanyama

Residence

8,261.29 m2◼ Established policy for green lease agreement and added green leaseclauses for eight office tenants, two retail tenants, and two hotel tenants◼ SAR plans to add the same clause to other properties

22

Total lending area

12,029.34

tenantsm2

Initiatives for S (Society)◆ Initiatives for employees
Buildings with the highlevel of "environmental andsocial awareness"◼ Diversity / inclusion (one out of four directors is female)◼ Employee satisfaction surveys◼ Introduced various systems in order to care for the health of employees• Promotion of teleworking and staggered commuting, superflex• Maternity leave, childcare leave, nursing care leave, and reduced
working hours◆ Digital signage in elevator halls
Buildings with the sufficientlevel of "environmental andsocial awareness"◼ Digital signage is installed in the elevator halls
which are common areas of the property, in order toenhance tenant satisfaction◼ The signage displays various news, information
about building facilities, and advertisements, etc.

◆ Tenants satisfaction surveys
19

4. Initiatives on ESG (4)GovernanceSame boat investment

Changes to the Calculation Formula for Asset Management Fees (under consideration)◼ Aligning the interests of the Sponsor Group with those of the unitholders
by holding 12.2% of the investment units of the Sponsor Group◼ Members of the Asset Manager also hold investment units

Management team of the Asset Manager (as of July 31, 2021)◼ During FP ended July 2021, the composition ratio of on-going fees waschanged. Aiming to further suit the interests of unitholders, changes arebeing considered of the calculation formula of asset management fees itself(No changes are expected to be made to other fees).
• The rates on asset balances will be explicitly reduced, and the link toincome from the managed assets to be increased.

◼ Hold SAR’s units through the employee unit purchase plan

◼ High commitment (Four officers hold 839 units in total)◼ Akiko Kanno, Director and General Manager of the Finance Management
Department, was approved as SAR’s substitute executive officer at the
October 2019 unitholders’ meeting

Current

Currently considered proposal

Management
fees I

Total valuation amount of managed Total valuation amount of managed
assets x 0.3% (upper limit)
assets x 0.2% (upper limit)

Management
fees II

Rate capped at DPU before deductionof Management Fees II x NOI
x 0.002% (upper limit)

NOI × 7.5% (upper limit)

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

Department

Star Asia Group (as of September 14, 2021)◼ Star Asia Group has continued to holdinvestment units since the time of listing, whichstrong supports the growth of SAR.

◼ Star Asia Group’s founders also as individuals
hold investment units.

Proposal

Number of units
held in same-boat
investment:

219,190 units
Ownership:
12.2 %

Compliance officer
Review and approval

ReturnInvestment Committee (including external members)
Review and resolution

RejectCompliance Committee (including external members)
Review and resolution

RejectBoard of directors
Review and resolution

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

SAR’s Committee
Review and approval

Disapprove

Items that need to be discussed at
the Compliance Committee20

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

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

5

Collaborative
andCooperative Culture

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

2

Highest EthicalStandards andIntegrity

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

6

Adaptability

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

3

Creativity

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

7

Meritocracy

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

4

Respect for Others

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

8Endless PursuitofExcellence

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

21

5. Offering Summary

22

5．Offering Summary (1)Significance of the Executed Public Offering◆ Acquisition of properties (total price of JPY 12.9 bn) along with the offering are the first step toward achieving the Mid-term Business Plan (Announced
March 2021)◆ SAR has negative goodwill (8.89 billion yen) and Ratings (JCR/A, R&I/A-)（＊） as the basis of growth, and aims early inclusion in global indicesFive-year trajectory since listing
Basis ofgrowthInitiatives

R&I
A- (Stable）

Negative
Goodwill
8.89 billion yen

To a new phase of growth
JCR

Aiming further improvement of ratings andA (Stable）

early inclusion in global indicesDiversified growth through active management(Three public offerings, seven asset replacements,
the Merger)

1st Public Offering
since the Merger

Pursue growth in asset size based on support by Star Asia Group(Ex: Capital recycling by Star Asia Group)

Acquisition of properties
through the first Offering since the Merger

JPY

five years since listing

Asset size
(Based on
Acquisition
price)

approx.

JPY

2.7x

JPY

18
properties

IPO(April 2016)53
properties

End of July 2021
(11FP)

179.6bn7
properties

166.7bn

61.4bnJPY

12.9bnForm of Offering

Domestic offering

No. of offered Investment Units

115,000 units

Issue Price (Offer Price)

57,330 yen

Payment Date

August 17, 2021

Total No. of Issued Investment
Units after the Offering[

1,789,389 units

Acquisitions
with the Offering

60
properties

After
Acquisition(＊) Credit ratings are the long-term issuer rating (JCR) and issuer rating (R&I) for SAR as of the date of this document, not credit ratings for SAR’s investment units

Mid-term Business Plan
23

5．Offering Summary (2)Changes in Key Indicators
As of End of July 2021
(11FP)

Assets Acquired upon Public
Offering (August 2021)

No. of properties

53 properties

7 properties

60 properties

Asset size

JPY
166.7 bn

JPY
12.9 bn

JPY
179.6 bn

NAV per unit

JPY 57,994

4.9 %

4.6 %

4.9 %

Post-depreciation appraisal
NOI yield (Note 6)

4.1 %

4.0 %

4.1 %

Ratio of Assets
in Tokyo area (Note 7)

73.0 %

63.9 %

72.3 %

Ratio of Mid-size assets (Note 8)

93.3 %

100.0 %

93.8 %

Ratio of Assets acquired from
Sponsor Group (Note 9)76.4 %

53.3 %

73.9 %

Portfolio appraisal NOI yield(Note 5)

Post-Acquisitions

24

5．Offering Summary (3)List of Acquired Assets◆ Acquisitions done in accordance with SAR’s investment policy: 1) preference for/concentrated investment in the Tokyo area, 2) diversification of asset types, 3) investment
focused on mid-size assets◆ For the first time, SAR will acquire an office building (Urban Center Hakata) which is the first development project undertaken by Star Asia Sogo Kaihatsu

Total Acquisition price

JPY 12,965 mn

Average appraisal
NOI yield

4.6 %Asset type

Ratio of Mid-size assets

Ratio ofAssets in Tokyo area

Ratio of Assets acquired
from the Sponsor Group

100.0 %

63.9 %

53.3 %(Note 10)

Property nameAcquisition price(JPY mn)

Area

Appraisal NOI
yield

From time of acquisition to present

OfficeUrban Center Hakata

2,870

Fukuokaarea(Note 11)

4.4 %Construction completed in Sept. 2020 and the first officedevelopment project undertaken by Star Asia Sogo Kaihatsu. Given
the rent guarantee type master lease agreement by the Sponsor
Group (up to August 2022), we anticipate stable income and rent
upside after leasing activities are concluded.

OfficeOHA Building

1,804Greater Tokyo
area (Note 12)

5.2 %Multi-tenant type office building. The standard floor area isapproximately 170 tsubo, which is competitive in the Tachikawa area.
Accommodates the needs of branches and sales offices.

BAGUS Ikebukuro West2,984

Tokyo area

4.1 %A 2-minute walk from the huge terminal station of “Ikebukuro”. Given
redevelopment projects in the surrounding area including IkebukuroWest District Redevelopment Project etc., this area is anticipated tofurther become a bustling commercial district and real estate prices
are expected to rise.

Residence

Urban Park Ryogoku

1,115Tokyo area

4.6 %Given the property is managed as one of Sumida ward’s specified
high-quality apartment, the current rent levels are lower than thesurrounding market, and rent upside can be expected in the future.

Residence

Urban Park Miyamaedaira

1,060Tokyo area

4.8 %Construction completed in June 2021.
At the time of acquisition, the occupancy rate was around 45%.
However, as of Sept. 10, the occupancy rate was 57.3%.

Residence

Urban Park Mizonokuchi

2,019Tokyo area

4.9 %This is a quality property in a good location with good access tocentral Tokyo . The building also provides residences with various
floor layouts.

Residence

Urban Park Tsurumi

1,113Tokyo area

5.2 %A family-type property leased under a lump-sum lease agreement to
be used for corporate housing, and stable income is anticipated.

4.6 %

25

RetailTotal Acquisitions Price / average

12,96525

（For Reference)

Towards incorporation into FTSE EPRA NAREIT Global Real Estate Index Series◆ Due to reexamination of the FTSE EPRA NAREIT Global Real Estate Index Series, from September 2021, the aggregate
market value adoption standard has been eased.
◆ The adoption standard for aggregate market value has been met, and preparation has begun aiming towards incorporation into
the Series in December 2021.
Aggregate
Market Value(in JPY million)

Total Sales(in JPY million)

4,500

120,000

4,000
100,000
3,500

Main Incorporation Requirements<Disclosure of English Annual
Report>Disclosure of (audited) English annual
report is required. SAR is currently
preparing to disclose an English
Annual Report in mid-October 2021.
<Aggregate Market Value Standard>

3,000

80,000Requirement: 0.3% or more ofDeveloped Asia
SAR has met this standard

2,500
60,0002,000<Other Requirements>

1,500

40,0001,000
20,000

There are requirements concerning
free float weight (ratio) during the
subject period, trade volume, andfinancial data (real estate related
EBITDA), however, SAR is expected tomeet these requirements.）

500

0
2016/4/20

0

2017/4/20

2018/4/20
売買高（左軸）2019/4/20

2020/4/20

2021/4/20

Targeting incorporation into the Series
in December 2021

時価総額（右軸）

26

6. Progression Status of Mid-Term Plan

27

６． Progression Status of Mid-Term Plan (1)Progression Status of Mid-Term Plan
◆ Inspection of the progress status towards the Mid-Term Plan prepared in March 2021.
◆ The asset size increased by 12.9 billion yen to total 179.3 billion yen due to the properties acquired in August 2021, andcruising DPY (forecast) increased by 1.4% to 1,476 yen (forecast for FP ending July 2022).

Assets Size

As of the end of July 2021

Distributions Per Unit

166.7 billion yen+1.4％

179.6 billion yen

Current Cruising Forecasted
Distributions Per Unit (13FP)

Priority measures going forward:➢ Think “outside the box” and consider all measures.
➢ Sponsor pipeline (The fund’s assets under managementof JPY 141.3 billion, pursuit development deals)➢ Find deals through the asset management company’s
own unique network.
➢ Conduct asset replacements as necessary.

Asset Size (Target): JPY

1,455 yen

12.9 billion yen

Properties acquired August 2021

As of the end of August 2021

Previous Cruising Forecasted
Distributions Per Unit (12FP)

300 billion

Indicative number of properties 100

1,476 yen

Priority measures going forward:➢ Cooperate with sub-sponsor (Nippon Kanzai Group)➢ Resolve rent gaps in the office portfolio.
➢ Reduce costs leveraging on the economy of scale➢ Rebuild the property management system to suit theportfolio mix.
➢ Optimize repair costs/ capital expenditures.

Distribution Per Unit (Target):

1,600 yen or more

Growth objective of 2% per annum28

６． Progression Status of Mid-Term Plan (2)The continuous implementation of corporate action in pursuit of the maximization of unitholders’ interests◆ SAR has continuously implemented Active Management initiatives since IPO including asset replacements, the merger with Sakura Sogo
REIT and POs all designed with the intent of maximizing unitholder value. As a result of these strategies, SAR unit price has consistently
outperformed the TSE REIT index since IPO in June 2021.

Active management and investment unit price performance since listing
IPO
April 20, 2016日(yen)

1st asset
replacement
December 5, 2016

1st follow-on
offering
March 17, 2017
2nd asset
replacement
February 28, 2017

3rd asset
replacement
July 23, 2018

2nd follow-on
offering
January 12, 2018

3rd follow-on
offering
August 21, 2018

4th asset
replacement
August 21, 2018

MergerMarch 2, 2020
5th asset
replacement
March 2, 2020

6th asset
replacement
October 5,2020

4th follow-on
offering
August 2, 2021

7th asset
replacement
March 2,2020

70,000(¥ 100mn)
2,000

65,000

1,800
1,600

60,0001,400
55,0001,200
50,0001,000
45,000800
40,000600
35,000400

30,000200

25,0000

SAR’s AUM (right)

スターアジア不動産投資法人の資産規模（右軸）

SAR’s unit price (left)

スターアジア不動産投資法人の投資口価格（左軸）TSE REIT index

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

29

６． Progression Status of Mid-Term Plan (3)Unwavering sponsor support by Star Asia Group for the growth of SAR
SAR’s acquisition record (cumulative) including Assets to be Acquired
and disposed assets

67 properties

Acquired Assets

JPY 196.4 bn

Properties acquired from Star Asia Group(Note 13)(Including properties succeeded from SSR)

50 properties / JPY 160.5 bn

Urban Center Hakata

BAGUS Ikebukuro WestOHA Building

Urban Park Ryogoku

Properties acquired with support
by Star Asia Group(Note 14)(Warehousing, etc.)

13 properties / JPY 23.9 bn
Star Asia Group’s initiatives for development projects
Urban Center Hakata◆ The first office development project by Star Asia Sogo
Kaihatsu Co., Ltd.
◆ A building developed by Star Asia Group, with highappeal for potential tenants and a commitment to quality

Properties managed by Star Asia Group(As of May 31, 2021)
Total of appraisal value(Note 16)

JPY 141.3 bn

Initiatives for development projects*The picture is a rendering◆ Star Asia Group will continue to engage in development
projects◆ The next development project, located in central
Kyoto(Note 15)

Expectation for expanded pipeline for SAR（Based on appraisal value）

30

６． Progression Status of Mid-Term Plan (4)Continued Initiatives to Improve Portfolio Quality◆ SAR returns gains on sale of properties to unitholders by replacing assets to enhance the portfolio and crystallize strong unrealized gains◆ SAR considers the best way to utilize portfolio assets, and explore the possibility of internal growth through redevelopment

Consideration of redevelopment of portfolio assets
to enhance portfolio quality

Continuous asset replacement
Disposed assets
1st

2nd

3rd

4th

5th

Acquired assets

Residence

Residence

Urban Park
Yoyogi Koen

Urban Park
Gokokuji

OfficeLogistics

Oak MinamiAzabu

Baraki Logistics

OfficeHotel

Hakata-Eki Higashi
113 Building

Hotel WBF Fukuoka
Tenjin Minami

Residence

Hotel

Urban Park
Shin-Yokohama

GLANSITAKIHABARA

OfficeResidence

Alphabet Seven

Urban Park
IchigaoGain / Loss on
disposal

STEP 1+ JPY 150mn+ JPY 1,510mn

Considerwhether
redevelopment
can increase
revenue

7th

Total

RetailResidence

Suroy Mall
Nagamine

Urban Park
Tokiwadai Koen

Logistics

Residence

Funabashi
Nishiura Logistics I

Urban Park
Mitsuike Koen

Confirm thepresence of
any unused
space

Estimated
increase in life
cycle cost✓

One candidate
logistics
facility was
selected+ JPY 820mn

STEP 2+ JPY 190mn+JPY 1,620mn

Explore thepossibility ofcollaboration
with Star Asia
Sogo Kaihatsu

Urban Park
Gyotoku

6th

Status ofSAR’sinitiatives

Present data analysis+ JPY 10mn

▲JPY 10mn+ JPY
4,310mn

STEP 3

Increase inrevenue after
redevelopment

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

Develop a postredevelopment
financial forecast/
Examineprofitability(Considerretention or sale)design✓ Initial
completed
Profitability is
being examined

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

Impact on DPU
during thedevelopment
period/Consider use ofretained earnings

To be judged
based onthe analysis(＊)（＊）Redevelopment projects are still in the consideration stage as of the date of this document,
and will not necessarily be executed.

31

7. Appendix

32

About Star Asia Group
Taro Masuyama
Co-Founder andManaging Partner

Malcolm F. MacLean IV
Co-Founder andManaging Partner

Star Asia Group is a privately owned, independent investment management group that focuses on investments in Japanese real estate
related opportunities.
• Conceived in 2006, Star Asia Group has invested over JPY872 bn since its foundation in 2007.
• Star Asia Group has 357 officers and employees including over 50 investment and asset management professionals based in Tokyo or
New Jersey, USA.1• We fully operate under our Guiding Principles which has continuously driven the group to become one of the leading real estate
investment management firms in Japan.
• The group’s strong track record and long-term partnership approach with our investors have been integral in attracting significant
capital from sophisticated global investors, including large U.S. university endowments and foundations, Japanese and European
pension funds, U.S. and Asia based family offices as well as other global real estate investors.
• The group is committed to its disciplined Investment Philosophy and SAR strives for its most important goal of meeting and exceeding
unitholders’ expectations.

Star Asia Group
Listed J-REIT
Asset manager

Private placement
fund management

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

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

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

Asset management

Private placement
fund

Unlisted investment company

Star Asia Capital Corp Limited

Star Asia Asset
Advisors Co., Ltd.
• Asset management
and brokerage forprivate placement
funds; real estate
asset and trust
beneficiary interest
brokerage; andproperty management.

Lion Partners GK

Star Asia Japan
Special Situations
LP

Star Asia Sogo
Kaihatsu Co., Ltd.
• Star Asia Group’s realestate development
company• Star Asia Group’s
flagship fund
• Actively investing
based on its
investment capacity• Currently develops
multiple properties
Asset management of
warehousing funds andprovides support fororigination of bridge
funds

Holds SAR’s investment
units

Holds SAR’s investment
units

Currently develops
properties withpreferential negotiationrights owned by SAR

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

Development andoperation of newgeneration student
accommodation

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

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

Development andoperation of hospitality
properties; listed

Polaris Holdings
Co., Ltd.
Listed on TSE 2nd
Section （3010）;
develops and operates
hotels• Star Asia Group
became a sponsor in
Nov. 2018 and holds
75.65% of issued
stock

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

Star Asia Group with expanding business provides strong support to SAR
1. As of March 31, 2021

33

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

Research Focus

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

4

Specialization

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

2

Market Inefficiencies

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

5

Risk Control

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

3

Maximizing and Unlocking
Value

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

6

Dependability, Transparency
and Decisive Action

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

34

Status of Unitholders
at the End of 11th Fiscal Period ended July 2021
List of major unitholders (Top 10)

Number of investment units by attribute: Total 1,674,389 units

End of 10FP

End of 11FP

Unitholder nameCategory
No. ofinvestment units

No. ofinvestment units

Ratio

Ratio

Individual

526,68831.5%

459,467

27.4%

Financial institution

470,41828.1%

506,828

30.3%

Domestic corporation

105,0426.3%

102,191

6.1%

Foreign

518,686

31.0%

534,436

31.9%

Securities company

53,555

3.2%

71,4674.3%

1,674,389

100.0%

Total

1,674,389

100.0%

Number of unitholders by attribute: Total 27,282

End of 10FP

End of 11FP

Category
No. ofunitholders
Individual

No. ofunitholders

Ratio

Holding ratio

1

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

174,680

10.4 %

2

Custody Bank of Japan, Ltd.
(Trust Account)

117,380

7.0 %

3

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

76,6384.6 %4

Custody Bank of Japan, Ltd.
(Security Trust Account)

65,4193.9 %5The Nomura Trust and Banking Co., Ltd.
(Trust Account)

59,598

3.6 %6Star Asia Capital Ⅰ LLC

48,3902.9 %4Star Asia Capital Ⅱ LLC

48,3902.9 %8Star Asia Capital Ⅲ LLC

48,3902.9 %9Star Asia Capital Ⅳ LLC

48,3902.9 %10Lion Partners GK

41,933

2.5 %

729,20843.6 %

Ratio

28,124

97.5%

26,57997.4%

Financial institution

40

0.1%

36

0.13%

Domestic corporation

408

1.4%

373

1.37%

Foreign

237

0.8%

263

0.97%

Securities company

28

0.1%

31

0.11%

28,837100.0%

27,282100.0%

Total
Total

Number ofinvestment units

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

35

Change in business results(Unit: million yen)
6FP (ended Jan.
2019) actual

7FP (ended Jul.
2019) actual

8FP (ended Jan.
2020) actual

9FP (ended Jul.
2020) actual

10FP (ended Jan.
2021) actual

11FP (ended Jul.
2021) forecast*

11FP (ended Jul.
2021) actual

3,224

3,344

3,200

3,314

5,648

5,488

5,536

47

Office rent

1,104

1,134

1,145

1,163

1,895

1,819

1,807

△ 11

Retail rent

-

-

-

-

848

784

790

5

Residence rent

458

438

439

512

889

1,038

1,023

△ 14

Logistics rent

912

910

817

887

974

909

909

-

Hotel rent

447

500

477

445

423

424

424

-

302

349

320

306

616

513

582

69

678

798

769

741

1,550

1,569

1,556

△ 13

2,545

2,535

2,431

2,573

4,097

3,919

3,980

61

409

415

420

432

628

635

633

△2

2,135

2,119

2,011

2,141

3,469

3,283

3,347

63

22

20

21

25

24

24

24

0

-

7

6

7

5

0

0

0

598

422

-

648

993

-

-

-

-

-

-

19

-

-

-

349

344

316

690

1,096

518

532

14

2,406

2,225

1,721

2,131

3,376

2,788

2,838

49

Non-operating income

0

0

1

3

4

3

3

Non-operating expenses

333

261

227

278

469

439

434

△5

-

-

-

-

8,891

Net income

2,049

1,964

1,493

1,857

11,801

2,348

2,407

58

Cash distribution per unit

3,720

3,625

2,788

3,436

1,676

1,455

1,462

7

FFO per unit

3,440

3,620

3,539

3,033

1,531

1,782

1,815

33

151

155

141

140

9,135

9,048

9,095

46

Lease business revenue

Other
Expenses related to rent
business(Depreciation is excluded)
NOI
Depreciation
Rent revenues/expenses
Mezzanine
TK distribution
Gain on sale of real estate
property
Loss on sales of real estate property

SGA
Operating income

Extraordinary income

Balance of Internal reserves

Comparison with
forecast

36

Balance Sheets for the 11th Fiscal Period ended July 31, 2021
10FP
(As of January 31,
2021)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Lease and guarantee deposits
Total investments and other assets
Total non-current assets
Total assets(Unit: thousand yen)
10FP
11FP
(As of January 31,(As of July 31, 2021)
2021)

11FP
(As of July 31, 2021)

3,565,028
7,515,934
82,348
188,497
9,208
11,361,017

3,169,688
7,536,399
96,187177,085
83,497
7,506
11,070,364

114
(14)
100
49,326,896(3,460,097)
45,866,798
20,635(3,671)
16,96473,226(14,997)
58,22847,023(16,360)
30,663
117,051,893
163,024,648

114
(42)
71
49,655,872(4,084,344)
45,571,527
20,635(4,393)
16,242
97,214(18,872)
78,341
56,654(20,334)
36,319117,051,893
550
162,754,946

4,082,300
4,082,300

4,082,300
4,082,300

756,206
300,000
245,057
20,5191,321,782
168,428,731
179,789,748

692,234
300,000
260,510
10,4591,263,203
168,100,450
179,170,815

Liabilities
Current liabilities
Operating accounts payable
Short-term loans 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
Unitholders’ capital surplus
Voluntary reserve
Reserve for temporary difference adjustment
Total voluntary reserve
Unappropriated retained earnings (undisposed
loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

621,461
2,150,000
22,660,000
541,206
43,534605
252,480
835,11330,58827,134,990

544,5422,150,000
23,450,000
492,764
41,562605
71,861
913,623
23,834
27,688,794

57,630,000
6,142
5,197,022
221,075
63,054,239
90,189,230

56,840,000
6,142
5,217,745
238,65462,302,542
89,991,336

52,745,966

52,745,966

25,132,218

25,132,218-

8,891,236
8,891,236

11,942,013

2,651,806

37,074,231
89,820,197

36,675,261
89,421,227(219,679)(219,679)
89,600,518
179,789,748(241,749)(241,749)
89,179,478
179,170,815

37

Statement of Income for the 11th Fiscal Period(From February 1, 2021 to July 31, 2021)(Unit: thousand yen)
10FP
(As of January 31, 2021)

11FP(As of July 31, 2021)

Operating revenue
Lease business revenue
Other lease business revenue
Gain on sales of real estate property
Other revenue
Total operating revenue
Operating expenses

5,259,516
389,105
993,574
29,933
6,672,130

5,184,498
351,786
24,4955,560,780

Expenses related to rent business

2,179,316

2,189,167

19,285405,30347,4272,400
448,870
192,798
3,295,402
3,376,728

380,024
38,6992,400
111,699
2,721,990
2,838,789

Loss on sales of real estate property
Asset management fee
Asset custody and administrative service fees
Directors’ compensations
Merger expenses
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of unpaid distribution
Interest on refund
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on negative goodwill
Total extraordinary income
Income before income taxes
Income taxes - current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

51

63

4,111
1
0
4,164

3,390
1
3,454

299,303
170,497
469,801
2,911,090

301,653
132,679
434,333
2,407,910

8,891,236
8,891,236
11,802,327
605
605
11,801,722
140,290

2,407,910
605
605
2,407,305
244,500

11,942,013

2,651,806

38

Portfolio List (as of July 31, 2021)
Property nameLocation

1.8
3.6
1.1
1.2
3.8
1.4
0.9

Shibuya Ward, Tokyo

2,580

2,710

1.5

4.0

Kobe City, Hyogo

7,440

7,390

4.5

5.7

Shibuya Ward, Tokyo

1,020

1,160

0.6

4.0

Shinjuku Ward, Tokyo

11,200
5,350
4,590
3,990
2,780
2,400
2,300
1,510
68,059
5,400
6,550
3,320
15,270
2,045
6,315
1,490
1,460
1,186
1,550
1,167
1,810
1,430
2,470
2,150
993
1,740
3,506
3,160
32,472

11,200
5,370
4,580
3,990
2,790
2,380
2,430
1,490
73,260
5,210
6,440
3,330
14,980
2,580
8,750
1,530
1,510
1,190
1,660
1,180
1,940
1,540
2,460
2,250
1,020
1,800
3,840
3,400
36,650

6.7
3.2
2.8
2.4
1.7
1.4
1.4
0.9
40.8
3.2
3.9
2.0
9.2
1.2
3.8
0.9
0.9
0.7
0.9
0.7
1.1
0.9
1.5
1.3
0.6
1.0
2.1
1.9
19.5

3.7
3.8
3.9
4.1
3.8
4.0
5.1
4.0
4.6
7.1
5.7
7.4
6.6
4.4
4.7
5.4
4.6
5.0
5.7
4.7
4.8
4.7
5.7
5.3
5.4
3.7
5.6
5.5
5.0

Osaka City, Osaka

Nishi-Shinjuku Matsuya Building

Shibuya Ward, Tokyo

Shibuya MK Building

Shibuya Ward, Tokyo

Asahi Building

Yokohama City, Kanagawa

Hakata-eki East Place

Fukuoka City, Fukuoka

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

Chuo Ward, TokyoNK Building

Chiyoda Ward, Tokyo

Tsukasamachi Building

Chiyoda Ward, Tokyo

Takadanobaba AccessShinjyuku Ward, Tokyo

Azabu Amerex Building

Minato Ward, Tokyo

Hiei-Kudan Building

Chiyoda Ward, Tokyo

Shin-Yokohama Nara Building

Yokohama City, Kanagawa
Chiyoda Ward, Tokyo

Subtotal

Retail

La Park Kishiwada

Kishiwada City, Osaka

Suroy Mall Chikushino

Chikushino City, Fukuoka

Seiyu Minakuchi

Koka City, Shiga

Sub total

Residence

Urban Park Azabujuban

Minato Ward, Tokyo

Urban Park Daikanyama

Shibuya Ward, Tokyo

Urban Park Namba

Osaka City, Osaka

Urban Park Gokokuji

Toshima Ward, Tokyo

Urban Park Kashiwa

Kashiwa City. Chiba

Urban Park Ryokuchi-koen

Suita City, Osaka

Urban Park Koenji

Suginami Ward, Tokyo

Urban Park Ichigao
Urban Park Gyotoku

Yokohama City, Kanagawa
Ichikawa City, Chiba

Shiroi Logiman

Shiroi City, Chiba

Urban Park Sekime

Osaka City, Osaka

Urban Park Imazato

Osaka City, Osaka

Urban Park Yoyogi
Urban Park Azabujuban

Shibuya Ward, Tokyo

Urban Park Daikanyama

Shibuya Ward, Tokyo

Minato Ward, Tokyo

Subtotal

4.7
5.1
6.6
5.9
5.1
5.6
4.7

AcquisitionPrice(mill)

Location

Appraisalvalue at Investmen Appraisalend oft ratio
NOI yield
11FP(%)(%)(＊)(mill)

7,490
4,230
8,720
4,900
1,410
867
2,910
1,710
704
32,941
2,270
1,410
3,610
3,200
1,920
2,440

4.2
2.1
4.7
2.8
0.8
0.5
1.7
1.0
0.4
18.2
1.2
1.0
2.3
1.9
1.2
1.5

4.8
5.7
5.3
4.2
5.7
7.0
5.5
6.5
6.8
5.2
5.4
4.3
4.3
4.5
4.4
3.9

R&B Hotel Umeda East

Osaka City, Osaka

Smile Hotel Namba

Osaka City, Osaka

Best Western Tokyo Nishi-kasai

Edogawa Ward, Tokyo

Best Western Yokohama
Hotel WBF Fukuoka Tenjin Minami

Yokohama City, Kanagawa

GLANSIT Akihabara

Chiyoda Ward, Tokyo

6,942
3,560
7,875
4,700
1,300
821
2,755
1,710
702
30,365
2,069
1,750
3,827
3,248
1,970
2,500

Best Western Tokyo Nishikasai
GrandeEdogawa Ward, Tokyo

3,180

3,130

1.9

4.0

KOKO HOTEL Namba

Osaka City, Osaka

Subtotal

2,000
20,544

1,400
19,380

1.2
12.3

3.7
4.3

Total

166,710 177,211

100.0

4.9

Iwatsuki Logistics

Saitama City, Saitama

Yokohama Logistics

Yokohama City, Kanagawa

Funabashi Logistics

Funabashi City, Chiba

Baraki Logistics

Ichikawa City, Chiba

Tokoyozawa Logistics

Tokorozawa City, Saitama

Funabashi Nishiura Logistics I

Funabashi City, Chiba

Funabashi Nishiura Logistics II

Funabashi City, Chiba

Matsubushi Logistics

Kita-Katsushika-gun, Saitama

Funabashi Hi-Tech Park Ⅰ

Funabashi City, Chiba

Subtotal

Hotel

2,990
6,810
2,520
3,230
7,900
2,780
1,540

Minato Ward, Tokyo

Honmachibashi Tower

Property name

Logistics

Office

2,973
6,065
1,763
2,042
6,320
2,286
1,450

Minami-Azabu Shibuya Building

The Portal Akihabara

Acquisitio Appraisal
Investmen Appraisal
value atnt ratio
NOI yield
end ofPrice(%)(%)(＊)
11 FP(mill)(mill)

Fukuoka City, Fukuoka

Period-end appraisal value：

177,221 million yen

Total book value：

166,836 million yen

Period-end unrealized gains (losses)：

10,375 million yen

Net assets per unit：

53,260 yen

Unrealized gains per unit：

6,196 yen

NAV per unit (*1)：

57,994 yen

P/NAV per (*2)

：

1.04

(*1) NAV per unit = (Period-end net assets + Period-end unrealized gains – Total cash
distribution) / Total number of investment units issued and outstanding (*2) P/NAV per ＝
Investment unit price / NAV per unit (Investment unit price on July 30, 2021: 60,400 yen)（＊） “Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of the property in the real estate appraisal report, rounded to the second decimal place.

39

Other assets under management (as of July 31, 2021)＜Acquired on August 19, 2021＞
Appraisalvalue(mill)

Location

AcquisitionPrice(mill)OHA Building

Tachikawa-shi, Tokyo

1,804

1,950

5.2

Urban Center Hakata

Fukuoka-shi, Fukuoka

2,870
4,674

3,030

4.4

4,980

4.7

2,984

3,240

4.1

2,984

3,240

4.1

Property name

OfficeSubtotal

RetailBAGUS Ikebukuro West

Toshima-ku, Tokyo
Subtota

Appraisal NOI
yield(%)(＊)

Residence

Urban Park Ryogoku

Sumida-ku, Tokyo

1,115

1,190

4.6

Urban Park Mizonokuchi

KawasakiCity, Kanagawa

2,019

2,100

4.9

Urban Park Miyamaedaira

KawasakiCity, Kanagawa

1,060

1,150

4.8

Urban Park Tsurumi

Yokohama City, Kanagawa

1,113

1,190

5.2

5,307

5,630

4.9

12,965

13,850

4.6

Subtota＜ Mezzanine loan debt investment＞
Number※：The base interest rate : JBA 3-month yen TIBORTypeName of the security（asset overview）

Period-end bookvalue
(million yen)

Underlying asset, etc.
Asset nameLocationInterest rate (※)

MEZ-01

Mezzanine(Subordinated bonds)

Star Asia Mezzanine Loan Debt
Investment Series 1

400

Relief Premium Haneda

Ota Ward,
Tokyo

Base rate +5.0%

MEZ-03Mezzanine(Subordinated Beneficiary Interest)

Star Asia Mezzanine Loan Debt
Investment Series 3

122

The Royal Garden Residence
Shirokanedai

Minato Ward,Tokyo

Base rate +5.0%

MEZ-04

Mezzanine(Subordinated loan claims)

Star Asia Mezzanine Loan Debt
Investment Series 4300

DS Kaigan Building

Minato Ward,Tokyo

Base rate +5.0%

MEZ-05

Mezzanine(Subordinated Beneficiary Interest)

Star Asia Mezzanine Loan Debt
Investment Series 5

150

Sanmaison Ohorikoenkita

Fukuoka city,
Fukuoka

Base rate +5.0%＜Silent partnership equity
Total interest＞

972＜ Silent partnership equity interest＞
NumberInvestments securities

Period-end bookvalue (million yen)

TKI-02

GK SAPR7 silent partnership equity interest

19

Total

Underlying asset, etc.
Property name
OHA Building

Location

Tachikawa city, Tokyo

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

40Balance of Payments of Individual Properties (1)Asset Type
Property nameAcquisition priceAppraisal value
Structure/Floors
Location

Lot area
Total floor areas
Construction completion

OFC-01
Minami-Azabu Shibuya
Building

Honmachibashi Tower

OFC-04
Nishi-Shinjuku Matsuya
Building

OFC-06

OFC-08

OFC-09Shibuya MK Building

Asahi Building

Hakata-eki East Place

2,973 million yen
3,020 million yen
SRC B1/7F
Minato Ward, Tokyo

6,065 million yen
6,760 million yen
S/SRC B1/21F
Osaka City, Osaka

1,763 million yen
2,500 million yen
SRC B1/9F
Shibuya Ward, Tokyo

2,042 million yen
3,220 million yen
S 6F
Shibuya Ward, Tokyo

6,320 million yen
7,790 million yen
S・SRC B2/12F
Yokohama City, Kanagawa

2,286 million yen
2,630 million yen
SRC 9F
Fukuoka City, Fukuoka

766.11㎡

1,274.37㎡

589.94㎡(surface right)

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

1,129.86㎡

4,137.21㎡
June 15, 1993

15,407.83㎡
February 8, 2010

5,117.80㎡
May 28, 1987

1,982.86㎡
July 31, 1993

12,353.83㎡
November 25, 1994

6,243.13㎡
February 24, 1986

10FP

11FP

10FP

11FP

10FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee

OFC-03

11FP

10FP

11FP

10FP

11FP

10FP

11FP

96,477133,299

239,587

195,045

109,835

94,35880,65070,900228,609

225,851

104,071108,224

88,052

78,864

184,096

173,222

101,689

88,03575,382

66,387211,188

210,571

92,77597,5148,424

54,43555,49021,823

8,145

6,323

5,267

4,513

17,421

15,27911,296

10,71026,23940,581

96,862

55,96435,23035,864

17,672

14,71562,90854,707

26,94029,184

5,901

5,766

14,02013,860

6,921

6,524

4,861

4,733

15,97915,405

8,174

8,715

Utilities expenses

400

400

400

400

400

400

350

350

400

600

400

400

Insurance premium

5,863

4,429

19,254

17,203

7,475

5,795

3,132

2,609

16,672

15,471

7,687

6,267

Repair expenses

120

148

370

457

133

164

46

57

371

479

173

216

Trust fee

1,325

16,18831,880

2,964

4,746

3,462

1,618

2,270

11,442

5,921

1,993

3,210

Taxes and dues

4,532

4,512

19,763

19,703

3,410

3,470

4,327

4,277

16,123

15,878

7,079

7,084

Other expenses

8,095

9,135

11,173

1,375

12,142

16,046

3,334

417

1,917

950

1,431

3,291

NOI

70,237

92,717

142,725

139,081

74,60458,49362,97856,184

165,701

171,143

77,13079,040Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures

11,60911,85145,40445,345

9,803

10,135

3,530

3,616

27,49328,282

8,033

8,660

58,62880,866

97,32093,73564,801

48,35859,44752,568138,207

142,861

69,09770,3794,130

44,939

2,312

1,957

6,922

11,727

3,977

1,683

24,9707,490

12,41825,215NCF
Period-end book value

66,107

47,778140,412137,124

67,682

46,76659,00154,501

140,730

163,653

64,71253,8252,944,540

2,977,628

5,772,954

5,729,565

1,825,844

1,827,435

2,093,043

2,091,110

6,325,224

6,304,432

2,319,212

2,335,089

41

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

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

OFC-13
Amusement Media Gakuin
Shinkan

OFC-14OFC-15Seishin Building

NK Building

Acquisition price

1,450 million yen

2,580 million yen

7,440 million yen

1,020 million yen

11,200 million yen

5,350 million yen

Appraisal value

1,540 million yen

2,690 million yen

7,390 million yen

1,160 million yen

11,200 million yen

5,360 million yen

Structure/Floors

SRC 11FSRC S 8F/B1F

SRC 14F

RC７F

SRC 10F/1B

SRC 10F/1B

Location

Chuo Ward, Tokyo

Shibuya Ward, Tokyo K

Kobe City, Hyogo

Shibuya Ward, Tokyo

Shinjyuku Ward, Tokyo

Chiyoda Ward, Tokyo

Lot area

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

433.21㎡

8,488.11㎡

203.43㎡

886.93㎡

590.72㎡

1,892.18㎡

25,740.46㎡

913.71㎡

7,624.66㎡

4,994.70㎡

July 13, 1992

November 2, 1994

January 6, 1992

January 25, 1999

March 31, 1989

October 28, 1991

Total floor areas
Construction completion

10FP

10FP

11FP

10FP

11FP

10FP

11FP

51,78851,788

320,536

295,580

244,866

254,280

138,581

128,600

51,78851,788288,866

271,387

228,262

238,682

124,989

122,337--

31,66924,193

16,604

15,59813,591

6,263

12,107

12,130110,222

104,438

61,28068,89733,71730,942

Management fee

880

880

25,592

24,04019,37019,205

11,735

11,606

Utilities expenses

400

400

400

400

353

350

353

350
4,140

Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue
Total operating expenses
from real estate leasing

11FP

10FP

11FP

10FP

11FP

-

-

29,96827,121

8,923

9,073

4,233

129

172

689

939

206

283

149

208

-

-

6,844

4,144

7,260

17,604

3,588

3,599

Taxes and dues

4,299

4,299

29,16528,63520,92020,723

10,64810,706

Other expenses

6,398

6,378

17,562

19,158

4,246

1,656

3,008

331

NOI

39,68039,658210,314

191,141

183,585

185,383

104,864

97,658Depreciation

2,837

2,837

33,52433,822

11,715

12,718

8,297

8,736

Operating income (loss)
from real estate leasing

36,84336,820176,790

157,319

171,870

172,664

96,56688,922--

22,746

14,38026,511

41,45525,4372,177

Insurance premium
Repair expenses
Trust fee

Capital expenditures
NCF
Period-end book value

39,68039,6581,453,120

1,450,282（*）

2,592,439（*）

2,588,217

187,567

176,761

7,620,273

7,600,830（*）

1,040,196（*）

1,038,531

157,073

143,927

79,426

95,481

11,214,796

11,243,533

5,367,139

5,360,580

42(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

Balance of Payments of Individual Properties (3)Asset Type

OFC-16

OFC-17

OFC-18OFC-19OFC-20

OFC-21

Property name

Tsukasamachi Building

Takadanobaba Access

Azabu Amerex Building

Hiei Kudan Building

Shin Yokohama Nara Bldg

The Portal Akihabara

Acquisition price

4,590 million yen

3,990 million yen

2,780 million yen

2,400 million yen

2,300 million yen

1,510 million yen

Appraisal value

4,590 million yen

3,970 million yen

2,789 million yen

2,370 million yen

2,310 million yen

1,510 million yen

Structure/Floors

SRC 8F/1B

SRC 14F/1B

SRC 8F/1B

SRC S 11F/1B

S RC 1F/1B

SRC S 8F

Location

Chiyoda Ward, Tokyo

Shinjyuku Ward, Tokyo

Minato Ward, Tokyo

Chiyoda Ward, Tokyo

Yokohama City, Kanagawa

Chiyoda Ward, Tokyo

Lot area

709.52㎡

930.70㎡

601.71㎡

700.59㎡

184.76㎡

5,356.99㎡

1,010.67㎡

March 17, 1992

May 31, 2002

Total floor areas
Construction completion

Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

4,629.27㎡

5,757.14㎡

2,909.80㎡

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

January 20, 1988

January 14, 1994

June 30, 1988

September 17, 1991

10FP

11FP

10FP

11FP

118,175

117,030

112,805

108,399

71,41065,034

68,63562,03381,80478,532

32,76832,305

110,309110,554

102,023

98,42968,44462,97968,63562,033

71,58070,122

31,16031,188

7,866

6,475

10,782

9,969

2,966

2,054

-

-

10,223

8,410

1,607

1,116

25,30743,09730,78735,72018,654

19,71022,63825,56829,867

31,109

6,821

7,778

9,722
403
4,888
144
2,325
7,437
385
92,867
7,399

9,740
400
4,977
200
17,8507,382
2,545
73,932
8,339

13,160
403
6,392
158
619
9,183
869
82,017
8,810

13,090
400
6,332
219
5,340
9,011
1,325
72,679
8,932

7,250
377
2,268
75
787
7,669
224
52,755
3,307

7,198
375
2,258
103
1,161
7,598
1,014
45,323
3,345

3,429
503
56
133
1,488
6,814
10,21245,996
3,643

3,410
500
183
186
1,008
6,630
13,64836,465
3,802

8,834
353
4,831
136
5,901
7,765
2,043
51,936
7,902

8,875
350
4,710
190
7,722
7,691
1,570
47,423
8,710

2,736
402
1,389
29
547
1,609
106
25,947
3,472

2,738
400
999
39
330
1,562
1,708
24,526
3,472

85,46865,59373,207

63,74749,44841,97842,352

32,662

44,03338,712

22,474

21,053467
92,4004,583,068

81,879△ 7,946
4,656,608

5,230
76,787
3,986,419

857
71,821
3,978,344

2,264
50,4912,778,957

1,921
43,402
2,777,532

3,543
42,452
2,399,900

2,550
33,914
2,398,648

18,76333,173
2,310,860

28,76018,6622,330,910

25,947
1,506,527

24,526
1,503,054

10FP

11FP

10FP

11FP

10FP

11FP

10FP

11FP

43

Balance of Payments of Individual Properties (4)Asset Type

OFC-22

OFC-23

RTL-01

RTL-02

RTL-03

RTL-05

Property name

OHA Building

Urban Center Hakata

LaPark Kishiwada

Suroy Mall Chikushino

Seiyu Minakuchi

BAGUS Ikebukuro West

Acquisition price

1,804million yen

2,870million yen

5,400 million yen

6,550 million yen

3,320 million yen

2,984million yen

Appraisal value

1,950million yen

3,030million yen

5,210 million yen

6,540 million yen

3,310 million yen

3,240million yen

Structure/Floors

RC S 6F/1B

S 8F

RC S 3F

S 2F

S 4F

SRC 8F/2B

Tachikawa city, Tokyo

Fukuoka city, Fukuoka

Kishiwada city, Osaka

Chikushino city, Fukuoka

Koka city, Shiga

Toshima Ward, Tokyo

Location
Lot area

964.80㎡

656.72㎡

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

39,799.74㎡

264.15㎡

Total floor areas

4,659.20㎡

3,566.56㎡

65,663.02㎡

31,086.23㎡

31,829.71㎡

1,497.45㎡

Construction completion

May 30, 1990

August 27, 2020

August 30, 1994

June 22, 2007

May 31, 1999

November 20, 1992

10FP

10FP

11FP

10FP

11FP

10FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

11FP

11FP

10FP

11FP

10FP

11FP

-

-

-

-

493,039486,731

282,075

285,039

-

-

-

-

-

-

416,499

416,957

279,962

281,432

-

-

-

-

-

-

76,54069,774

2,112

3,607

-

-

-

-

-

-

287,961

273,949

65,89669,851

-

-

-

-

-

-

120,640
1,861
99,507853
6,977
44,742
13,378205,078
23,983

120,173
1,850
89,884
1,164
7,279
44,011
9,587
212,781
24,886

22,949
353
4,597
442
832
19,627
17,092
216,178
23,53425,767
650
4,777
612
4,431
19,398
14,214215,188
23,706

-

-

-

-

-

-

181,094

187,894

192,644

191,482

-

-

-

-

-

-

40,815
164,2635,416,831

12,317200,4635,404,262

6,612
209,566
6,533,078

215,1886,509,371

-

-

（*）

3,311,053（*）

3,291,582

44(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

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

RSC-01
Urban Park Azabujuban

RSC-02
Urban Park Daikanyama

RSC-05
Urban Park Namba

RSC-06
Urban Park Gokokuji

RSC-07
Urban Park Kashiwa

RSC-08
Urban Park Ryokuchi-koen

Acquisition priceAppraisal value

2,045 million yen
2,500 million yen
SRC with slate roofing
B1/12F
Minato Ward, Tokyo

6,315 million yen
8,450 million yen

1,490 million yen
1,630 million yen

1,460 million yen
1,510 million yen

1,186 million yen
1,190 million yen

1,550 million yen
1,640 million yen①RC B1/3F ②RC B1/9F

RC 14FRC B1F/5F

SRC B1F/8F

RC 8F

Shibuya Ward, Tokyo

Osaka City, Osaka

Toshima Ward, Tokyo

Kashiwa City, Chiba

Suita City, Osaka

670.39㎡

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

1,597.85㎡

2,804.56㎡

Structure/Floors
Location
Lot area
Total floor areas
Construction completion

417.67㎡
2,564.94㎡

8,261.29㎡

2,776.87㎡

2,451.72㎡

4,243.71㎡

5,854.64㎡

November 29, 1999

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

January 9, 2013

February 28, 1990

August 28, 1997

March 10,1989

10FP

10FP

10FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

2,469.06㎡

11FP

10FP

11FP

10FP

11FP

11FP

11FP

10FP

11FP

52,852

51,142

193,136

187,458

44,77942,59142,97443,53535,16438,42557,65956,30351,15849,563

180,773

180,11144,08540,982

41,22639,322

34,12836,48955,51953,007

1,694

1,578

12,363

7,347

693

1,608

1,747

4,212

1,035

1,936

2,139

3,295

16,76014,56739,45735,414

9,113

11,09618,08916,621

13,4909,496

13,843

15,041

2,086
350
634
59
7,997
2,874
2,757
36,091
5,010

2,334
350
588
72
5,615
2,873
2,732
36,574
5,120

9,028
350
3,726
202
6,823
11,442
7,884
153,679
13,306

9,203
350
3,442
247
5,933
11,453
4,783
152,044
13,610

2,499
350
341
66
1,780
2,820
1,254
35,666
7,547

2,444
350
314
84
2,732
2,820
2,349
31,494
7,555

3,678
400
2,124
54
4,321
1,909
5,600
24,884
5,690

3,765
400
2,188
66
4,877
1,897
3,425
26,913
5,700

1,824
350
533
88
6,276
2,950
1,467
21,673
7,385

2,147
350
512
109
1,714
2,949
1,712
28,929
7,495

2,289
350
2,578
124
3,518
3,583
1,399
43,815
8,083

2,428
350
2,384
162
3,944
3,576
2,194
41,262
8,124

31,081

31,454140,372

138,434

28,11823,93919,194

21,212

14,287

21,43335,73133,1372,443
33,6482,080,199

2,701
33,872
2,077,780

8,237
145,441
6,373,859

10,351
141,693
6,370,600

1,014
34,651
1,499,242

31,494
1,491,687

24,884
1,506,434

455
26,4581,501,189

7,306
14,366
1,241,490

2,852
26,077
1,236,847

2,031
41,784
1,601,879

1,789
39,473
1,595,543

45

Balance of Payments of Individual Properties (6)Asset Type

RSC-09

RSC-10

RSC-11

RSC-12

RSC-13

RSC-14

Property nameUrban Park Koenji

Urban Park Ichigao

Urban Park Gyotoku

Shiroi Logiman

Urban Park Sekime

Urban Park Imazato

Acquisition price

1,167 million yen

1,810 million yen

1,430 million yen

2,470 million yen

2,150 million yen

993 million yen

Appraisal value

1,180 million yen

1,890 million yen

1,530 million yen

2,460 million yen

2,210 million yen

990 million yen

Structure/Floors

RC 4F

RC SF/1B

SRC 10F

RC 13F

SRC 15F

RC 10F

Location

Suginami Ward, Osaka

Yokohama City, Kanagawa

Ichikawa city, Chiba S

Shiroi city, Chiba

Osaka City, Osaka

Osaka City, Osaka

Lot area

988.26㎡

1,758.84㎡

1,122.57㎡

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

2,346.39㎡

1,803.70㎡

8,190.11㎡

4,862.83㎡

August 18, 1989

December 20, 1991

10FP

10FP

Total floor areas
Construction completion

1,524.34㎡

5,243.85㎡

3,397.95㎡

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

October 13, 1987

July 10, 1998

March 1, 1995

May 9, 1995

10FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

11FP

10FP

11FP

10FP

11FP

10FP

11FP

11FP

11FP

34,526

34,71554,80356,48846,30345,031

140,832

140,163

84,76383,94039,26838,864

31,52731,642

52,931

54,41343,07142,507

133,951

132,560

82,381

81,27639,00838,726

2,998

3,072

1,872

2,075

3,231

2,523

6,880

7,602

2,381

2,663

259

138

11,98615,0398,584

14,049

6,831

9,539

59,14361,64632,56638,42810,501

11,927

2,416
400
1,344
38
5,924
969
893
22,539
2,769

1,768
400
1,380
50
6,616
1,009
3,814
19,675
2,796

2,966
400
1,419
111
2,894
792
46,218
5,431

3,092
400
1,341
145
2,482
3,942
2,644
42,438
5,445

2,096
400
1,549
73
1,381
1,331
39,471
4,196

2,186
400
1,581
95
2,014
2,146
1,114
35,491
4,198

5,913
756
2
580
11,397
13,98026,514
81,68919,066

5,968
750
2
815
12,726
13,932
27,45278,516
19,094

10,077
377
1,973
200
12,481
5,452
2,003
52,196
11,112

9,962
375
2,329
281
17,934
5,291
2,253
45,511
11,389

4,071
377
277
102
1,909
3,294
468
28,766
5,183

4,168
375
264
142
2,568
3,207
1,200
26,937
5,185

19,77016,87840,78736,99335,27531,29362,62259,421

41,084

34,122

23,58321,751

1,097
21,441
1,192,775

19,675
1,189,979

46,2181,925,466

519
41,9191,920,540

39,471
1,513,491

456
35,035
1,509,749

228
81,4602,451,162

850
77,6662,432,918

24,04228,154
2,162,929

24,893
20,6182,176,433

28,766
987,816143
26,794
982,77446

Balance of Payments of Individual Properties (7)Asset Type

RSC-15

RSC-16
Urban Park
Tokiwadai Koen

RSC-17
Urban Park
Mitsuike Koen

RSC-18

RSC-19

RSC-20Urban Park Ryogoku

Urban Park Mizonokuchi

Urban Park Miyamaedaira

Property nameUrban Park Yoyogi

Acquisition priceAppraisal value

1,740 million yen
1,760 million yen

3,506 million yen
3,770 million yen

3,160 million yen
3,330 million yen

1,115million yen
1,190million yen

2,019million yen
2,100million yen

1,060million yen
1,150million yen

Structure/Floors

RC 8F

RC 5F

RC 6F

SRC 9F

RC 5F

S Alloy-plated steel plate
3F

Sumida Ward, Tokyo
669.98㎡

Kawasaki City, Kanagawa
2,624.51㎡

Kawasaki City, Kanagawa
1,239.53㎡

Location
Lot area
Total floor areas
Construction completion

Shibuya Ward, Tokyo
464.09㎡
1,418.03㎡

15,708.08㎡

10,918.37㎡

2,351.42㎡

5,029.52㎡

2,039.17㎡

September 4, 2017

Feb 17, 1994

March 24, 1992

October 31, 1997

August 23, 1988

June 10, 2021

10FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

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

11FP

10FP

11FP

10FP

11FP

10FP

11FP

10FP

11FP

10FP

11FP

42,26735,70282,517140,985

16,384

126,287

-

-

-

-

-

-

40,816

34,71779,609134,337

15,351

119,167

-

-

-

-

-

-

1,451

984

2,908

6,648

1,033

7,119

-

-

-

-

-

-

6,658

7,812

12,82944,625

2,897

27,429

-

-

-

-

-

-

2,189
402
183
36
582
1,791
1,473
35,608
4,393

2,035
400
224
49
2,284
1,660
1,157
27,889
4,393

6,406
236
817
144
1,608
45
3,570
69,688
8,416

11,341
394
1,653
414
11,36910,833
8,617
96,36012,624

1,626
52
52
34
80
40
1,012
13,486
1,951

10,795
394
1,045
333
7,382
7,476
98,858
11,707

-

-

-

-

-

-

31,21523,49561,271

83,736

11,53587,150

-

-

-

-

-

-

35,608
1,735,606

27,8891,731,212

69,6883,648,190

96,3603,635,565

13,4863,304,112

98,8583,292,404

-

-

-

-

-

-

47
(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

Balance of Payments of Individual Properties (8)Asset Type

RSC-21

LGC-01

LGC-02

LGC-03

LGC-04

LGC-05

Property nameUrban Park Tsurumi

watsuki Logistics

Yokohama Logistics

Funabashi Logistics

Baraki Logistics

Tokorozawa Logistics

Acquisition price

1,113 million yen

6,942 million yen

3,560 million yen

7,875 million yen

4,700 million yen

1,300 million yen

Appraisal value

1,190 million yen

7,310 million yen

4,120 million yen

8,660 million yen

4,850 million yen

1,380 million yen

Structure/Floors

RC 6F

Steel construction, zinc plated
steel roofing, 5 floors

RC 8F

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

RC・S 5F

S 2F

Location

Yokohama City, Kanagawa

Saitama City, Saitama

Yokohama City, Kanagawa

a Funabashi City, Chiba

Ichikawa City, Chiba

Tokorozawa City, Saitama

Lot area

2,172.70㎡

15,623.14㎡

6,240.96㎡

8,645.63㎡

12,471.50㎡

5,994.75㎡

August 14, 2015

April 30, 1999

Total floor areas
Construction completion

Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

3,169.13㎡

29,729.72㎡

February 17, 1994

October 29, 2014

10FP

10FP

11FP

11FP

10,565.95㎡

19,858.00㎡

18,387.89㎡(including 256.15

38,871.45㎡(two buildings

m2 break areas etc.)

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

October 1, 1994
10FP

11FP

10FP

11FP

-

-

198,172

196,498

259,851

256,808--

187,718

187,713

241,854

241,899--

10,454

8,784

17,997

14,909--31,15929,22654,00250,736

-

-

5,920
350
10,454284
382
13,629137
167,01246,731

5,908
350
8,784
346
394
13,442
167,271
46,78812,508400
14,521409
2,929
23,014217
205,849
27,146

11,773400
10,901
501
5,245
21,392521
206,072
27,290--120,280

120,483

178,703178,781

-

-

2,263
164,748
6,561,177

167,271
6,514,389

4,067
201,782
7,765,437

4,760
201,311
7,742,907(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

（*）

3,734,157（*）

3,716,284

10FP

11FP

10FP

11FP

（*）

（*）

（*）

（*）

4,628,965

4,613,191

1,361,933

1,358,895

48

Balance of Payments of Individual Properties (9)Asset Type

LGC-07

LGC-08Property name

Funabashi Nishiura
Logistics Ⅱ

LGC-09

LGC-10

HTL-01

HTL-02

Matsubushi Logistics

R&B Hotel Umeda East

Smile Hotel Namba

Acquisition price821 million yen

2,755 million yen

1,710 million yen

Appraisal value

850 million yen

2,910 million yen

1,710 million yen

702 million yen

2,069 million yen

1,750 million yen

701 million yen

2,250 million yen

1,400 million yen

Structure/Floors

R 4F

S 2F

S 2F

RC 9F

S 9F

Funabashi city, Chiba

Funabashi city, Chiba

Osaka City, Osaka

Osaka City, Osaka

Funabashi Hi-Tech ParkⅠ Funabashi Hi-Tech ParkⅡ

Location

Funabashi city, Chiba

Lot area

3,964.00㎡

RC 3F
Kita-Katsushika-gun,
Saitama
11,580.65㎡

13,420.44㎡

8,268.35㎡

730.26㎡

285.28㎡

Total floor areas

6,316.32㎡

19,833.47㎡

8,029.47㎡

4,384.83㎡

3,945.65㎡

1,711.42㎡

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

March 31, 1997

May 19, 2003

September 5, 2001

October 20, 2000

February 6, 2008

10FP

10FP

10FP

Construction completion

10FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value（*）

853,76311FP（*）

860,90310FP（*）

2,709,574

11FP

（*）

2,696,063(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

10FP

（*）

853,76311FP（*）

1,698,525（*）

2,709,574

11FP

（*）

696,810

11FP

11FP

65,36265,392

22,374

17,62665,36265,392

22,374

17,626

-

-

-

-

9,228

12,015

4,130

4,421

742
350
1
117
2,313
5,452
249
56,134
9,949

742
350
3
152
4,788
5,404
573
53,377
10,096

660
550
55
514
2,276
73
18,243
12,233

660
550
70
888
2,227
24
13,204
12,20946,18543,281

6,010

995

3,481
52,653
2,108,402

9,277
44,0992,107,583

18,243
1,663,146

13,204
1,650,937

49

Balance of Payments of Individual Properties (10)Asset Type

HTL-04

HTL-05

Property nameBest Western Tokyo Nishikasai

Best Western Yokohama

Hotel WBF Fukuoka Tenjin
Minami

GLANSIT Akihabara

Acquisition price

3,827 million yen

3,248 million yen

1,970 million yen

2,500 million yen

3,180 million yen

2,000 million yen

Appraisal value

3,610 million yen

3,190 million yen

1,930 million yen

2,440 million yen

3,130 million yen

1,450 million yen

Structure/Floors

HTL-03

HTL-06

HTL-07

HTL-08

Best Western
KOKO Hotel Osaka Namba
Tokyo Nishikasai Grande

SRC B1F／9F

SRC B1F／9F

RC 10F

SRC 10F/B1F

S 8F

RC9F

Location

Edogawa Ward, Tokyo

Yokohama City, Kanagawa

Fukuoka City, Fukuoka

Chiyoda Ward, Tokyo

Edogawa Ward, Tokyo

Osaka City, Osaka

Lot area

1,418.00㎡

782.66㎡

543.94㎡

167.74㎡

657.00㎡

335.31㎡

Total floor areas

5,293.88㎡

4,686.09㎡

2,281.49㎡

1,081.97㎡

2,755.19㎡

2,061.38㎡

March 19, 1991

September 21, 1987

February 20, 2017

September 20, 2017

February 7, 2017

April 7, 2017

10FP

10FP

10FP

10FP

Construction completion

10FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

11FP

11FP

11FP

11FP

11FP

10FP

11FP

85,59584,78280,94580,40070,82570,002--

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

-

-

995

182

545

-

823

-

-

-

11,941

10,063

6,693

6,485

6,738

6,684

5,137

4,795

1,200
400
130
1,281
8,019
909
73,653
12,506

1,200
400
159
424
7,856
24
74,71812,895

1,200
400
110
236
4,705
41
74,252
13,069

1,200
400
135
205
4,521
23
73,914
13,069

990
400
67
5,239
41
64,087
10,857

990
400
90
5,182
21
63,317
10,857

1,214
350
43
48
3,153
327
△5,137
9,035

979
350
49
64
100
3,169
84
△ 4,795
9,050

61,146

61,823

61,18360,84553,23052,460△14,173△ 13,845

19,95153,702
3,867,247

74,7183,854,352

74,252
3,247,472

73,914
3,234,403

64,087
3,154,095

63,317
3,143,237

114△5,252
1,980,186△ 4,795
1,971,136(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

（*）

1,948,273（*）

1,939,625（*）

2,499,306（*）

2,494,663

50

Balance of Payments of Individual Properties (11)

OfficeRetail

10FP

11FP

10FP

Total operating revenue
from real estate leasing

2,217,108

2,107,587

Lease businessrevenue

2,009,772

Other lease businessrevenue

Residence

11FP

10FP

1,014,452

931,809

1,917,333

919,348

207,336

190,253

Total operating expenses
from real estate leasing

642,495

Management fee

Logistics

11FP

10FP

968,232

1,121,634

858,427

925,540

95,10473,381

623,899

415,583

162,720

158,173

Utilities expenses

7,324

Insurance premium

Hotel

Total

11FP

10FP

11FP

10FP

11FP

1,022,855

950,535

425,972

424,718

5,648,622

5,536,284

1,068,828

981,246915,373423,608

424,536

5,259,516

5,184,498

42,69152,806

41,60835,161

2,364

182

389,105

351,786

376,322262,756

332,735

176,804

169,305

53,32253,8901,550,962

1,556,153

149,968

147,741

59,17273,644

33,11632,348

7,733

7,498

412,710

419,406

7,275

2,865

3,000

5,553

6,039

3,671

3,350

3,200

3,200

22,614

22,864

128,602

114,861

116,579

94,661

17,55819,25438,562

31,7324553

301,349

260,562

Repair expenses

3,192

4,171

1,766

2,290

1,916

3,071

1,618

1,874

615

784

9,110

12,192Trust fee

86,971

93,577

11,346

12,75068,977

90,19810,307

17,273

4,345

6,405

181,948

220,204

Taxes and dues

169,874

165,167

83,88574,99751,15367,59484,811

78,21935,67735,153425,403421,132

Other expenses

83,80980,672

49,17240,88158,42372,932

4,715

4,507

1,704

795

197,825

199,789

1,574,612

1,483,687

598,869

555,486

705,476

788,899

846,050

781,230

372,650

370,827

4,097,659

3,980,131

205,343

208,497

78,95974,235109,543

124,444

153,564

144,368

80,942

81,468628,353

633,013

1,369,269

1,275,189

519,909481,251595,932

664,455

692,486

636,861

291,707289,359

3,469,305

3,347,117

170,716

266,996

63,75518,48946,40245,01427,47923,662

23,5469,277

331,900

363,439

NCF

1,403,896

1,216,691

535,113536,997

659,074

743,885

818,571757,567

349,103361,550

3,765,759

3,616,692

Period-end book value

68,134,518

68,192,339

15,260,962

15,205,216

33,224,657

33,145,227

30,018,678

29,897,972

20,468,131

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

20,395,940 167,106,948 166,836,697

51

Note
P13

P.19

P24

(note1)“The current rent levels of existing tenants” is the rent stated in the lease agreement effective as of the end of April 2021 for the 3 residence anticipated to be acquired
excluding Urban Park Miyamae-daira (only residential portions for Urban Park Ryogoku, and not the sublease contract but the lease contracts with end tenants for Urban Park
Mizonokuchi), and offered rent as of the end of June 2021, for Urban Park Miyamae-daira, each converted to tsubo. The same shall apply hereinafter.

(note2)“The assumed rents for new tenants” is the market rent (yen/m 2) as stated in real estate appraisal reports SAR obtained for Assets to be Acquired (only residential portions for
Urban Park Ryogoku) converted to tsubo, and refers to the rent expected to be agreed upon in lease agreements with new tenants in each real estate estimated by the realestate appraiser as of June 1 ,2021. These values are estimates based on expectations by the real estate appraiser for agreed rent with new tenants, and does not suggest theability to raise agreed rent by existing tenants to the same level. Furthermore, when seeking tenants for Assets to be Acquired, there is no guarantee that agreements can bereached at the value stated as “The assumed rents for new tenants.” As of the date of this document, a business corporation has rented all units in Urban Park Tsurumi for use
as company housing. The same shall apply hereinafter.

(note3)“DBJ Green Building Certification” is a certification under the framework system (hereinafter, “the framework”) established by Development Bank of Japan Inc. (hereinafter,“DBJ”) in April 2011 to support properties with environmental and social awareness (“Green Building”). The framework rates and certifies properties required by society and theeconomy based on a comprehensive assessment covering items from environmental performance of properties to measures for various stakeholders including disasterprevention and consideration for local communities, and supports such initiatives. Japan Real Estate Institute (JREI) has conducted certification, while DBJ has controlled theoverall framework since August 2017. The framework has five levels of certification (★ ~ ★★★★★).

(note4)“Green lease contracts” indicates the lease contracts stating that the lessor and the tenant jointly determine rules including reduction of environmental burdens such as energy
saving of properties and improvement of working environment by concluding contracts, memorandums, etc., and implement such rules.

(note5)“Portfolio appraisal NOI yield” means the following：
For “As of End of July 2021 (11th FP)“, the ratio of the sum of net operating income (NOI) calculated based on the direct capitalization method in real estate appraisal reports tothe total acquisition price of the real estate properties held as of July 31, 2021 (End of 11th FP);for “Assets Acquired upon Public Offering (August 2021)”, the ratio of the sum of net operating income (NOI) calculated based on the direct capitalization method in real estateappraisal reports to the total acquisition price of the Assets Acquired upon Public Offering;for “Post-Acquisitions”, the ratio of the sum of net operating income (NOI) calculated based on the direct capitalization method in real estate appraisal reports to the totalacquisition price of all 60acquired assets;
in each case rounded to one decimal place. The same shall apply hereinafter.

(note6)“Post-depreciation appraisal NOI yield” means the following:
For “As of End of July 2021 (11th FP)“, the ratio of the sum of net operating income (NOI) calculated based on the direct capitalization method in real estate appraisal reports
less depreciation cost anticipated by the Asset Manager to the total acquisition price of the real estate properties held as of July 31, 2021 (End of 11th FP);for “Assets Acquired upon Public Offering (August 2021)”, the ratio of the sum of net operating income (NOI) calculated based on the direct capitalization method in real estateappraisal reports less depreciation cost anticipated by the Asset Manager to the total acquisition price of the Assets Acquired upon Public Offering;for “Post-Acquisitions”, the ratio of the sum of net operating income (NOI) calculated based on the direct capitalization method in real estate appraisal reports less depreciation
cost anticipated by the Asset Manager to the total acquisition price of all 60 acquired assets;
in each case rounded to one decimal place. The same shall apply hereinafter.

(note7)“Ratio of Assets in Tokyo area” means the following:
For “As of End of July 2021 (11th FP)”, the ratio of total acquisition price of real estate properties held by SAR which are located in the Tokyo area as of July 31, 2021 (End of
11th FP) to the total acquisition price of all real estate properties etc. held as of the same date;for “Assets Acquired upon Public Offering (August 2021)”, the ratio of the total acquisition price of the Assets Acquired upon Public Offering which are located in the Tokyo
area to the total acquisition price of all of the Assets Acquired upon Public Offering,for “Post-Acquisitions”, the ratio of the total acquisition price of all acquired assets which are located in the Tokyo area to the total acquisition price of all 60 acquired assets,
in each case rounded to one decimal place.

52
52

Note
P24

P.25

P30

(note8)“Ratio of Mid-size assets” means the following:
For “As of End of July 2021 (11th FP)“, the ratio of the total acquisition price of “mid-size assets” held as of the end of July 31, 2021 (end of 11th FP) to the total acquisition priceof all real estate properties etc. held as of the same date;for “Assets Acquired upon Public Offering (August 2021)”, the ratio of the total acquisition price of “mid-size assets” among the Assets Acquired upon Public Offering to the totalacquisition price of all of the Assets Acquired upon Public Offering; andfor “Post-Acquisitions”, the ratio of the total acquisition price of “mid-size assets” among all 60 acquired assets to the total acquisition price of all 60 acquired assets.
The same shall apply hereinafter.

(note9)“Ratio of Assets Acquired from Sponsor Group” is , for “End of January 2021 (10th FP),” the ratio of the total acquisition price of the properties acquired from the Sponsor
Group (excluding the properties succeeded from SSR through the Merger and acquired using warehousing functions or sponsor forward commitment. The same shall apply inthis Note 4) held as of January 31, 2021 (End of 10th FP) to the total acquisition price of the properties held as of January 31, 2021 (End of 10th FP) (excluding the properties
succeeded from SSR through the Merger), for “Assets to be Acquired”, the ratio of the total Anticipated Acquisition price of the properties which will be acquired from theSponsor Group (excluding the properties acquired using warehousing functions or sponsor forward commitment) to the total Anticipated Acquisition price, for “After AnticipatedAcquisitions”, the ratio of the total (Anticipated) Acquisition price of the properties acquired from the Sponsor Group to the total (Anticipated) Acquisition price of the properties(excluding the properties succeeded from SSR through the Merger). The same shall apply hereinafter.

(note10）

As of the date of this document, the SPC belonging to the Sponsor Group owns the land for the housing development project, and the confirmation for construction of thebuilding has already been obtained and construction work has commenced. SAR does not plan to acquire such development projects, etc., and there is no guarantee that SAR
will be able to acquire it in the future as of the date of this document.

(note11）“Fukuoka area” refers to Fukuoka city and its urban area for residences and logistics facilities, and refers to Fukuoka city for other asset types.

(note12）“Greater Tokyo area” refers to Tokyo prefecture (excluding the 23 wards) and major cities in Kanagawa (excluding Kawasaki and Yokohama cities) and Saitama prefectures for
Office and Retail properties.

(note13)“Acquired from Star Asia Group” refers to the properties acquired or to be acquired from the sponsor group, including properties previously held by SSR, out of a total of 67
properties, including properties acquired by SAR up to the date of this document (including properties already sold) and the properties to be acquired (total acquisition price of
196.4 billion yen). Acquisitions from SPC in which funds managed by Star Asia Group are investing in silent partnerships as part of its provision of warehousing function andacquisitions using sponsor forward commitment are excluded. The 18 properties acquired through the Merger are included in properties acquired from Star Asia Group.

(note14)“Properties acquired with support by Star Asia Group” are the properties for which Star Asia Group provided support, such as warehousing, securing properties throughsponsor forward commitment, investment in equity interest in a silent partnership for SPC holding properties (including the minority investment), etc. of the 67 properties
acquired by SAR up to the date of this document (including properties already sold) and the properties to be acquired (total anticipated acquisition price of 196.4 billion yen).

(note15)

As of the date of this document, the SPC belonging to the Sponsor Group owns the land for the housing development project, and the confirmation for construction of thebuilding has already been obtained and construction work has commenced. SAR does not plan to acquire such development projects, etc., and there is no guarantee that SAR
will be able to acquire it in the future as of the date of this document.

(note16)"Appraisal value" of properties under management by Star Asia Group is calculated based on the appraisal value stated in the latest appraisal report of properties undermanagement by Star Asia Group (of the assets held by Star Asia Group as of the end of May 2021, those that are real estate, and do not fall under any of the SAR’s assets
currently held, Assets to be Acquired, assets for which SAR holds preferential negotiation rights as of the end of May 2021, or assets held by Polaris Holdings or its
consolidated subsidiaries. The same applies hereinafter). As of the date of this document, SAR does not plan to acquire any of the properties under management by Star Asia
Group, and there is no guarantee that such properties will be acquired in the future.

53
53

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

■ Contact regarding this material
Akiko Kanno, Director and CFO (General Manager of Finance Management Department)

Star Asia Investment Management Co., Ltd.
Atago Green Hills Mori Tower 18F, 2-5-1, Atago, Minato-ku, Tokyo 105-6218
Tel: +81-3-5425-1340
54