(REIT) Financial Report for Fiscal Period Ended January 31, 2024
REIT Securities Issuer:
Securities Code:
Representative:

March 15, 2024
Stock Exchange Listing: Tokyo Stock Exchange
URL: https://starasia-reit.com/en/

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

Asset Management Company: Star Asia Investment Management Co., Ltd.
Representative:
Atsushi Kato, President and CEO
Contact:
Akiko Kanno, Director and CFO
TEL: 03-5425-1340
Scheduled date of submission of securities report:
Scheduled date of commencement of cash distribution payment:
Preparation of supplementary financial results briefing materials:
Holding of financial results briefing session:

April 25, 2024
April 15, 2024
Yes
Yes

(Amounts are rounded down to the nearest million yen)
1. Status of Management and Assets for Fiscal Period Ended January 31, 2024 (from August 1, 2023 to January 31, 2024)(1) Management Status(% figures are the rate of period-on-period increase (decrease))
Operating revenue
Operating income
Ordinary income
Net income
Fiscal period
million yen%
million yen%
million yen%
million yen%
Ended Jan. 2024
7,964
14.7
4,309
19.5
3,528
14.8
3,527
14.8
Ended Jul. 2023
6,946
7.1
3,606
7.7
3,073
10.5
3,073
10.5
Net income per unit
Fiscal period
Ended Jan. 2024
Ended Jul. 2023

Ratio of net income toequityRatio of ordinary income to Ratio of ordinary income tototal assets
operating revenue
%
%
%
3.1
1.5
44.3
3.0
1.5
44.2

yen
1,518
1,599

(2) Status of Cash Distribution
Cash distribution
Total cash
Total cash
per unit
distribution
Cash distribution
Ratio of cash
distribution in Cash distribution(not including cash (not including cash
in excess of
distribution toexcess ofpayout ratio
distribution in
distribution inearnings per unit
net assets
earnings
excess of earnings) excess of earnings)
Fiscal periodyenmillion yen
yenmillion yen%%
Ended Jan. 2024
1,524
3,614
102.5
2.8
Ended Jul. 2023
1,586
3,047
99.2
2.9
(Note 1) Total cash distribution differs from net income due to the reversal of reserve for temporary difference adjustment and otherfactors.
(Note 2) For the fiscal period ended January 31, 2024, cash distribution payout ratio is calculated by the following formula due tochanges in the number of investment units during the period following issuance of new investment units during the period:
Total cash distribution (not including cash distribution in excess of earnings) ÷ Net income × 100(3) Financial Position
Fiscal period
Ended Jan. 2024
Ended Jul. 2023

Total assets
million yen
259,155
209,259

Net assets
million yen
127,127
103,224

Equity ratio

Net assets per unit
%
49.1
49.3

yen
53,59553,715(4) Status of Cash FlowsNet cash provided by (used Net cash provided by (used Net cash provided by (used Cash and cash equivalentsin) operating activities
in) investing activitiesin) financing activities
at end of period
Fiscal period
million yen
million yen
million yen
million yen
Ended Jan. 2024
5,274
(51,804)
46,396
11,653
Ended Jul. 2023
5,107
(2,492)(2,866)
11,787-1-

2. Management Status Forecast for Fiscal Period Ending July 31, 2024 (from February 1, 2024 to July 31, 2024) and Fiscal Period Ending
January 31, 2025 (from August 1, 2024 to January 31, 2025)(% figures are the rate of period-on-period increase (decrease))

Fiscal periodEnding Jul. 2024
Ending Jan. 2025

Operating revenue

Operating income

Ordinary income

million yen
7,959
8,156

million yen
4,159
4,296

million yen
3,477
3,562

%
(0.1)
2.5

%
(3.5)
3.3

%
(1.4)
2.4

Cash distribution per
Cash distribution inunit (not including
Net income
excess of earnings per
cash distribution in
unit
excess of earnings)
million yen
%
yen
yen
3,476
(1.4)
1,520
0
3,561
2.4
1,538
0

(Reference) Forecast net income per unit (Expected net income ÷ expected total number of investment units issued and outstandingat end of period)
Fiscal period ending July 31, 2024:
Expected total number of investment units issued and outstanding at end of period 2,372,000 units
Forecast net income per unit 1,465 yen
Fiscal period ending January 31, 2025:
Expected total number of investment units issued and outstanding at end of period 2,372,000 units
Forecast net income per unit 1,501 yen(Note) Cash distribution per unit calculated using the expected total number of investment units issued and outstanding at endof period above (total number of investment units issued and outstanding as of the date of this report of 2,372,000 units).
* Other(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement① Changes in accounting policies accompanying amendments to accounting standards, etc.: No② Changes in accounting policies other than ①: No③ Changes in accounting estimates: No④ Retrospective restatement: No(2) Total Number of Investment Units Issued and Outstanding① Total number of investment units
Fiscal period
Fiscal period
issued and outstanding (including own
ended Jan. 31,
2,372,000 units ended Jul. 31,
1,921,689 units
2024
2023
investment units) at end of period
Fiscal period
Fiscal period② Number of own investment units at
ended Jan. 31,
0 units ended Jul. 31,
0 units
end of period
2024
2024
(Note) For the number of investment units serving as the basis for calculation of net income per unit, please see “Notes on Per
Unit Information” on page 22.
* Financial reports are exempt from audits by a certified public accounting or accounting firms.
* Special Note
The management status outlook and other forward-looking statements contained in this document are based on informationthat are currently available and certain assumptions that are deemed reasonable by SAR. Accordingly, the actual management
status, etc. may differ materially due to various factors. In addition, the forecast figures are the current figures calculated under
the assumptions described in “Assumptions Underlying Operating Results Forecasts for Fiscal Period Ending July 31, 2024, andFiscal Period Ending January 31, 2025” on pages 3-4. Accordingly, the actual operating revenue, operating income, ordinary
income, net income, cash distribution per unit (not including cash distribution in excess of earnings) and cash distribution inexcess of earnings per unit may vary due to acquisition/disposition of real estate, etc., trends of the real estate market, etc.,
fluctuations in interest rates, or other changes in the circumstances surrounding SAR, etc. in the future. In addition, the forecast
is not a guarantee of the amount of cash distribution.

-2-

Assumptions Underlying Operating Results Forecasts for Fiscal Period Ending July 31, 2024, and Fiscal Period Ending January 31, 2025
Item

Assumptions

Fiscal period

Fiscal period ending July 31, 2024 (17th fiscal period): February 1, 2024 – July 31, 2024 (182 days)
Fiscal period ending January 31, 2025 (18th fiscal period): August 1, 2024 – January 31, 2025 (184 days)

Assets undermanagement

It is assumed with respect to the assets held by SAR as of the date of this report (71 real estate trust
beneficiary interests, 2 mezzanine loan debts and 1 preferred equity securities (collectively, “Currently
Held Assets,” with those in the form of real estate trust beneficiary interests being referred to as“Currently Held Assets (Real Estate),” those in the form of mezzanine loan debt being referred to as“Currently Held Assets (Mezzanine),” and those in the form of preferred equity securities being referred toas “Currently Held Assets (Preferred Equity)”)) that there will be no change in assets under management(acquisition of new assets, sale of Currently Held Assets, etc.) before the end of the fiscal period ending
January 31, 2025.
However, in reality, assets under management may change.

Operating revenues

Rent revenues from Currently Held Assets (Real Estate) are calculated based on the details stated in thelease agreements effective as of the date of this report, and rent revenues from the Assets to be Acquired
are calculated based on information provided by each seller and the details stated in the lease agreementsthat are expected to be effective as of the planned acquisition date, taking into consideration factors suchas market movements. It is also assumed that there will be no arrears or non-payment of rent by tenants
Interest or dividend income from Currently Held Assets (Mezzanine) are calculated based on outlines
which define the contents of Currently Held Assets (Mezzanine) and the details stated in the loan
agreements or trust agreements, etc. that are effective as of the date of this report. It is also assumed thatno interest payments or dividend payments will be unpaid.
For Currently Held Assets (Preferred Equity), it is based on the premise that the assumed loan income will
be generated based on the details of agreements on preferred equity lending transactions, etc.

Operating expenses

Among expenses related to rent business, which are the main operating expenses, expenses other thandepreciation are calculated on the basis of historical performance data, by reflecting variable expense
factors.
Fixed property taxes, city planning taxes, and other public charges are expected to be 611 million yen for
the fiscal period ending July 31, 2024, and 609 million yen for the fiscal period ending January 31, 2025.
For expenditures for repair and maintenance of buildings, based on the repair and maintenance plan
prepared by Star Asia Investment Management Co., Ltd. (the “Asset Manager”), 228 million yen is
expected for the fiscal period ending July 31, 2024, and 238 million yen for the fiscal period ending
January 31, 2025. However, the actual expenditures for repair and maintenance for the fiscal periods
could differ significantly from the estimated amounts, as urgent expenditures due to damage to buildings
may arise due to unexpected factors, and because such expenditure amounts generally tend to varysignificantly from year to year, and do not arise regularly.
Depreciation is calculated using the straight-line method including for ancillary costs and is expected to be
1,034 million yen for the fiscal period ending July 31, 2024, and 1,058 million yen for the fiscal period
ending January 31, 2025.
Operating expenses other than expenses related to rent business are expected to be 713 million yen for
the fiscal period ending July 31, 2024, and 730 million yen for the fiscal period ending January 31, 2025.

NOI(Net Operating
Income)Total NOI of the entire portfolio is expected to be 5,842 million yen for the fiscal period ending July 31,
2024, and 6,019 million yen for the fiscal period ending January 31, 2025.
NOI is calculated by using the following calculation method.
NOI = rent revenue – rent expenses (excluding depreciation)

Non-operating
expenses

Expenses on issuance of new investment units (amortization of investment unit issuance costs) are
expected to be 20 million yen for the fiscal period ending July 31, 2024, and 20 million yen for the fiscal
period ending January 31, 2025.
The sum of interest expenses and other financing-related expenses is expected to be 656 million yen for
the fiscal period ending July 31, 2024, and 708 million yen for the fiscal period ending January 31, 2025.
The sum of interest expenses on investment corporation bonds and other expenses on investment
corporation bond issuance (amortization of investment corporation bond issuance costs) is expected to be
4 million yen for the fiscal period ending July 31, 2024, and 4 million yen for the fiscal period ending
January 31, 2025.

-3-

Item

Assumptions

Debt financing andinvestment
corporation bonds

The total amount of interest-bearing liabilities is assumed to be 121,840 million yen as of the end of the
fiscal period ending July 31, 2024, and 121,840 million yen as of the end of the fiscal period ending
January 31, 2025.
As of the date of this report, SAR has outstanding borrowings of 122,140 million yen and outstanding
investment corporation bonds of 1,000 million yen.
Of the outstanding borrowings as of the date of this report, 1,300 million yen is planned to be prepaid
during the fiscal period ending July 31, 2024 from the proceeds of refunds of consumption tax, etc.
Other than the above, it is assumed that those with repayment dates falling in the fiscal period ending July
31, 2024, and the fiscal period ending January 31, 2025, will be fully refinanced and that there will be nochange to the existing outstanding borrowings and outstanding investment corporation bonds through tothe end of the fiscal period ending January 31, 2025.

Investment units

It is assumed that the total number of investment units issued and outstanding will be 2,372,000 units,
the number as of the date of this report, and that there will be no change in the number due to issuanceof new investment units, etc. through to the end of the fiscal period ending January 31, 2025.

Cash distributions
per unit(not including cash
distribution inexcess of earnings)

SAR calculates its distribution per unit (excluding distributions in excess of earnings) pursuant to its cash
distributions policy as set forth in its Articles of Incorporation.
As for the reserve for temporary difference adjustment, SAR plans to continuously reverse 1% or more of
the initial reserve in each fiscal period and use it mainly to mitigate any negative impact on distributions
caused by temporary decrease in income or incurred expenses and to avoid the occurrence of corporate
and other tax expenses as a result of any differences between tax and accounting.
As to cash distribution for the fiscal period ending July 31, 2024, it is assumed that a total of 3,605 million
yen (1,520 yen per unit) will be distributed, which is the sum of the estimated net income of 3,476 million
yen, the expected amount of reversal of reserve for temporary difference adjustment of 88 million yen
and a portion of retained earnings brought forward of 39 million yen. As to cash distribution for the fiscal
period ending January 31, 2025, it is assumed that a total of 3,648 million yen (1,538 yen per unit) will be
distributed, which is the integral multiple of the total number of issued investment units out of the sum of
the estimated net income of 3,561 million yen and the expected amount of reversal of reserve fortemporary difference adjustment of 88 million yen.
The distribution per unit may change due to various factors including changes to the assets undermanagement, changes to rent revenues given movements, etc. of tenants, or the occurrence of
unexpected repairs.

Cash distributions
in excess ofearnings per unit

SAR has no plans to make distributions in excess of earnings as of the date of this report.

OthersSAR assumes that no amendments affecting the above forecast numbers will be made to relevant laws
and regulations, tax policies, accounting standards, listing rules, rules of The Investment Trusts
Association, Japan, etc.
SAR assumes that there will be no unforeseen material change in general economic conditions or realestate market conditions, etc.

-4-

2. Financial Statements(1) Balance Sheet(Unit: thousand yen)
15th fiscal period(As of July 31, 2023)
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
Investments in other securities of subsidiaries andassociates
Investment securities
Long-term prepaid expenses
Leasehold and guarantee deposits
Leasehold and guarantee deposits in trust
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets
Total assets-5-

16th fiscal period(As of January 31, 2024)

3,262,429
8,525,306
139,180
197,986
14,462
12,139,365

2,466,478
9,186,964
319,557
276,610
1,245,234
18,49813,513,345

114
(114)
0
56,821,886(6,898,692)
49,923,193
25,744(7,577)
18,166
251,570(44,740)
206,829
139,432(48,732)
90,699139,857,495
33,095
190,129,480

114
(114)
0
72,991,822(7,735,645)
65,256,177
37,679(8,703)
28,975306,175(58,216)
247,958
150,147(54,677)
95,470169,768,470
170
235,397,221

4,082,300
4,082,300

6,251,893
6,251,893

1,588,015

1,588,015

740,000
331,220
10,359191,1222,860,717
197,072,498

1,170,000
542,728
10,239263,988343,228
3,918,199
245,567,314

10,54336,75847,301
209,259,165

9,522
65,14974,672
259,155,332

(Unit: thousand yen)
15th fiscal period(As of July 31, 2023)
Liabilities
Current liabilities
Operating accounts payable
Short-term borrowings
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term borrowings
Leasehold and guarantee deposits received
Leasehold and guarantee deposits received in trust
Asset retirement obligations
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

*2

*1

-6-

16th fiscal period(As of January 31, 2024)

995,681
14,340,000
534,593
75,324605
252,695
1,236,897
35,505
17,471,301

983,9081,300,000
13,285,000
664,966
96,918605
48,4081,028,917
26,846
17,435,570

1,000,000
81,500,000
4,179
5,965,643
93,57888,563,401
106,034,702

1,000,000
107,555,000
4,053
5,915,288
98,96918,825
114,592,137
132,027,707

66,123,367

89,316,185

25,132,218

25,132,218

8,535,586
8,535,586*2

8,446,674
8,446,674

3,340,372

3,909,364

37,008,177
103,131,545

37,488,257
126,804,443

92,917
92,917103,224,463
209,259,165

323,181
323,181
127,127,624
259,155,332*1

(2) Statement of Income and Retained Earnings(Unit: thousand yen)
15th fiscal period
From: February 1, 2023
To: July 31, 2023
Operating revenue
Rental revenue
Other lease business revenue
Gain on sale of real estate
Other revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody and administrative service fees
Directors’ compensations
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of unpaid distribution
Subsidy income
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses
Amortization of investment corporation bond issuancecosts
Amortization of investment unit issuance costs
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

*1
*1
*2

*1

-7-

16th fiscal period
From: August 1, 2023
To: January 31, 2024

6,048,231
454,964
414,166
29,564
6,946,926*1

2,744,572
418,486
42,3952,400
132,242
3,340,096
3,606,830

*1

*1
*2

7,077,860
447,056
374,516
65,436
7,964,869
2,946,506
512,727
48,711
2,400
144,769
3,655,114
4,309,754

53
1,046
504
315
1,918

58
1,583
1,642

377,649
3,500
140,125

463,491
3,500
294,089

1,020

1,020

12,611
534,906
3,073,841
3,073,841
605
605
3,073,236
267,135
3,340,372

20,812782,913
3,528,484
3,528,484
605
605
3,527,879
381,4853,909,364

(3) Statement of Unitholders’ Equity
15th fiscal period (from February 1, 2023 to July 31, 2023)(Unit: thousand yen)
Unitholders’ equity
Surplus
Voluntary reserve
Unitholders’capitalBalance at beginning of theperiod66,123,367

Unitholders’capital surplus

Reserve fortemporarydifference
adjustment

25,132,218

8,624,499

Unappropriatedretainedearnings
Total voluntary(undisposed
reserveloss)
8,624,499

Total surplus

Totalunitholders’equity3,043,461

36,800,179

102,923,546(2,865,238)(2,865,238)(2,865,238)

88,912--

3,073,236

3,073,236

3,073,236

Changes of items during theperiodDividends from surplus
Reversal of reserve fortemporary difference
adjustment(88,912)(88,912)Net income
Net changes of items otherthan unitholders’ equity
Total changes of items during
the period--(88,912)(88,912)296,910

207,998

207,998

Balance at end of the period*1 66,123,367

25,132,218

8,535,586

8,535,586

3,340,372

37,008,177

103,131,545

Valuation and translation
adjustments

Balance at beginning of theperiodDeferred gains
or losses onhedgesTotal ofvaluation andtranslation
adjustments

531,551

531,551

Total net
assets103,455,098

Changes of items during theperiodDividends from surplus(2,865,238)

Reversal of reserve fortemporary difference
adjustment-

Net income

3,073,236

Net changes of items otherthan unitholders’ equity(438,633)(438,633)(438,633)

Total changes of items during
the period(438,633)(438,633)(230,635)

Balance at end of the period

92,917

92,917103,224,463-8-

16th fiscal period (from August 1, 2023 to January 31, 2024)(Unit: thousand yen)
Unitholders’ equity
Surplus
Voluntary reserve
Unitholders’capitalBalance at beginning of theperiod66,123,367

Unitholders’capital surplus

Reserve fortemporarydifference
adjustment

25,132,218

8,535,586

Unappropriatedretainedearnings
Total surplus
Total voluntary(undisposed
reserveloss)
8,535,586

3,340,372

37,008,177

Total
unitholders’equity103,131,545

Changes of items during theperiodIssuance of new investment
units

23,192,817

23,192,817

Dividends from surplus
Reversal of reserve fortemporary difference
adjustment(88,912)(88,912)Net income(3,047,798)(3,047,798)(3,047,798)

88,912--

3,527,879

3,527,879

3,527,879

Net changes of items otherthan unitholders’ equity
Total changes of items during
the period

23,192,817-(88,912)(88,912)568,992

480,080

23,672,898

Balance at end of the period*1 89,316,185

25,132,218

8,446,674

8,446,674

3,909,364

37,488,257

126,804,443

Valuation and translation
adjustments
Deferred gains Total valuation
or losses on and translation
hedgesadjustments
Balance at beginning of theperiod92,917

92,917

Total net
assets103,224,463

Changes of items during theperiodIssuance of new investment
units

23,192,817

Dividends from surplus(3,047,798)

Reversal of reserve fortemporary difference
adjustment-

Net income

3,527,879

Net changes of items otherthan unitholders’ equity

230,263

230,263

230,263

Total changes of items during
the period

230,263

230,263

23,903,161

Balance at end of the period

323,181

323,181

127,127,624-9-

(4) Statement of Cash Distributions(Unit: yen)
15th fiscal period
From: February 1, 2023
To: July 31, 2023
I. Unappropriated retained earnings
II. Reversal of voluntary reserve
Reversal of reserve for temporary
difference adjustment *1
III. Cash distribution[Cash distribution per unit]
Cash distribution of earnings[Cash distribution of earnings per unit]
IV. Retained earnings carried forward

Method of calculation of amount of cash
distributions

16th fiscal period
From: August 1, 2023
To: January 31, 2024

3,340,372,051

3,909,364,877

88,912,365

88,912,365

3,047,798,754(1,586)
3,047,798,754(1,586)

3,614,928,000(1,524)
3,614,928,000(1,524)381,485,662

383,349,242

15th fiscal period (from February 1,
16th fiscal period (from August 1,
2023 to July 31, 2023):
2023 to January 31, 2024):
Pursuant to the cash distribution
Pursuant to the cash distribution
policy provided in Article 35,
policy provided in Article 35,
Paragraph 1 of SAR’s Articles ofParagraph 1 of SAR’s Articles ofIncorporation, SAR shall distribute inIncorporation, SAR shall distribute inexcess of the amount equivalent toexcess of the amount equivalent to
90% of the amount of distributable
90% of the amount of distributableearnings of SAR as defined in Article
earnings of SAR as defined in Article
67-15, Paragraph 1 of the Act on
67-15, Paragraph 1 of the Act on
Special Measures Concerning
Special Measures Concerning
Taxation. In accordance with suchTaxation. In accordance with suchpolicy, concerning cash distribution of policy, concerning cash distribution of
earnings (not including cash
earnings (not including cash
distribution in excess of earnings), the distribution in excess of earnings), thedecision was made to distributedecision was made to distribute
3,047,798,754 yen, which is equivalent 3,614,928,000 yen, which is equivalent
to the sum of the amount remaining
to the integral multiple of the total
after reserving 114,350,316 yen from number of units out of the sum of the
net income and the amount ofamount of net income and thereversal of reserve for temporaryamount of reversal of reserve fordifference adjustment of 88,912,365
temporary difference adjustment ofyen.
88,912,365 yen.

- 10 -

(5) Statement of Cash Flows(Unit: thousand yen)
15th fiscal period
From: February 1, 2023
To: July 31, 2023
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of investment corporation bond issuancecosts
Amortization of investment unit issuance costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in advances received
Decrease in property, plant and equipment in trust due tosaleOther, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
Repayments of leasehold and guarantee deposits
received
Repayments of leasehold and guarantee deposits
received in trust
Proceeds from leasehold and guarantee deposits received
in trust
Proceeds from refund of leasehold and guarantee
deposits in trust
Payments of leasehold and guarantee deposits in trust
Purchase of investments in other securities of subsidiaries
and associates
Purchase of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period*1- 11 -

16th fiscal period
From: August 1, 2023
To: January 31, 2024

3,073,841
763,3533,528,484
963,602

1,020

1,020

12,611(53)
381,149
8,532
181,189
205,289
13,262(297)(42,522)(4,176)217,372

20,812(58)
466,991(180,377)(1,245,234)(204,286)(78,623)(211,507)
101,183
104,651(207,980)

688,594

2,670,427(9,408)5,489,759
53(383,278)
1,406
5,107,940(8,731)5,720,373
58(445,423)(616)
5,274,392(698,358)-(48,883,791)(2,176,621)(1,701)(126)(130,365)(294,990)

255,855

244,635-

120-(263,988)(1,578,073)-(340,000)(2,492,642)(430,000)(10)(51,804,771)

10,790,000(10,790,000)(2,866,153)(2,866,153)(250,855)
12,038,591
11,787,736

1,300,000
29,840,000(4,840,000)
23,143,614(3,047,528)
46,396,086(134,292)
11,787,736
11,653,443*1

(6) Notes on the Going Concern Assumption
Not applicable.
(7) Notes on Matters Concerning Significant Accounting Policies
1. Evaluation standards andmethods of valuation of
securities(1) Investments in other securities of subsidiaries and associates:
Cost method through moving-average method(2) Other securities:
Those with market price
Fair value method or market value method (Variances are directly included in net assets.)

2. Method of depreciation of
non-current assets(1) Property, plant and equipment (including trust assets)
The straight-line method is adopted. The useful life of primary property, plant andequipment is as follows:
Buildings
2-70 years
Structures
7-30 years
Machinery and equipment 7-17 years
Tools, furniture and fixtures 2-15 years(2) Intangible assets (including trust assets)
The straight-line method is adopted.
Fixed-term land leasehold is amortized using the straight-line method over the remaining
period.

3. Accounting for deferredassets(1) Investment unit issuance costs
Investment unit issuance costs are amortized by the straight-line method over 3 years.
(2) Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized by the straight-line method
over the period through redemption.

4. Standards for recording
revenue and expense(1) Accounting for fixed property tax, etc.
Accounting for fixed property tax, city planning tax, depreciable asset tax, etc. (“fixed
property tax, etc.”) on real estate or beneficiary interest in trust for real estate held is thatof the tax amount assessed and determined, and the amount corresponding to theconcerned fiscal period is expensed as expenses related to rent business.
The amount equivalent to fixed property tax, etc. in the initial fiscal year borne by SAR
upon acquisition of real estate or beneficiary interest in trust for real estate is not recorded
as expenses but included in the cost of acquisition of the concerned real estate, etc. In thefiscal period under review, the amount equivalent to fixed property tax, etc. included in thecost of acquisition of real estate, etc. is 63,569 thousand yen.
(2) Standards for recording revenue
The details of main performance obligations concerning revenue generated from contracts
between SAR and its customers and the ordinary time to fulfil said performance obligations(ordinary time to recognize revenue) are as follows.
① Sale of real estate
For the proceeds from sale of real estate, SAR records revenue when the purchaser who isa customer obtains control of the relevant real estate as a result of the seller fulfilling itsdelivery obligations stipulated in the transaction agreement of the real estate.
② Utilities income
SAR records utilities income in accordance with the supply of electricity and water, etc. tothe lessee who is a customer based on the lease agreement of real estate and details ofagreements incidental to it.
Of the utilities income, in the case that SAR deems itself to be an agent, the net amountobtained by deducting the amount it pays to other parties from the amount it receives as
charges for electricity and gas, etc. supplied by the said other parties is recognized asrevenue.

5. Method of hedge
accounting(1) Hedge accounting approach
Deferral hedge accounting is adopted.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transaction
Hedged items: Interest on loans(3) Hedging policy
SAR conducts derivative transactions for the purpose of hedging the risks provided in its
Articles of Incorporation pursuant to basic rules on risk management.
(4) Method of assessing the effectiveness of hedging
The effectiveness of hedging is assessed by comparing the cumulative change in cash flowsof the hedging instruments with the cumulative change in cash flows of the hedged items
and verifying the ratio of the amount of change in the two.

- 12 -

6. Scope of funds in thestatement of cash flows(cash and cash
equivalents)

The funds (cash and cash equivalents) in the statement of cash flows comprise cash on hand andcash in trust, demand deposits and deposits in trust, and short-term investments with a maturityof three months or less from the date of acquisition that are readily convertible to cash and thatare subject to an insignificant risk of changes in value.

7. Other significant mattersserving as the basis for
preparation of financial
statements(1) Accounting for beneficiary interest in trust for real estate, etc.
Concerning beneficiary interest in trust for real estate, etc. held, all accounts of assets andliabilities within trust assets as well as all accounts of revenue and expenses from the trust
assets are recognized in the relevant account item of the balance sheet and the statementof income and retained earnings.
The following material items of the trust assets recognized in the relevant account item areseparately listed on the balance sheet.
① Cash and deposits in trust② Buildings in trust; Structures in trust; Machinery and equipment in trust; Tools,
furniture and fixtures in trust; Land in trust; Construction in progress in trust③ Leasehold rights in trust④ Leasehold and guarantee deposits in trust⑤ Leasehold and guarantee deposits received in trust(2) Accounting for consumption tax, etc.
Non-deductible consumption tax on acquisition of assets is included in the acquisition costof each asset.

(8) Notes on the Financial Statements[Notes on the Balance Sheet]*1 Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Unit: thousand yen)
15th fiscal period(As of July 31, 2023)

16th fiscal period(As of January 31, 2024)
50,00050,000*2 Matters concerning provision and reversal of the reserve for temporary difference adjustment
15th fiscal period (As of July 31, 2023)(Unit: thousand yen)
InitialamountGain on negative
goodwill (Note)

8,891,236

Balance at
beginning of
the period

Reserveduring theperiod8,624,499

Reversalduring theperiod-88,912

Balance at
end of theperiodReasons for provision andreversal

8,535,586 Appropriate for distribution(Note) Gain on negative goodwill indicates the amount of provision of gain on negative goodwill recorded in the past fiscal period, and will be reversedin equal amount or more over 50 years or less every fiscal period starting from the 12th fiscal period, which is the period following the fiscal
period in which the provision was made.

16th fiscal period (As of January 31, 2024)(Unit: thousand yen)
InitialamountGain on negative
goodwill (Note)

8,891,236

Balance at
beginning of
the period

Reserveduring theperiod8,535,586

Reversalduring theperiod-88,912

Balance at
end of theperiodReasons for provision andreversal

8,446,674 Appropriate for distribution(Note) Gain on negative goodwill indicates the amount of provision of gain on negative goodwill recorded in the past fiscal period, and will be reversedin equal amount or more over 50 years or less every fiscal period starting from the 12th fiscal period, which is the period following the fiscal
period in which the provision was made.

- 13 -

[Notes on the Statement of Income and Retained Earnings]*1 Breakdown of operating income from real estate leasing(Unit: thousand yen)
15th fiscal period
From: February 1, 2023
To: July 31, 2023

16th fiscal period
From: August 1, 2023
To: January 31, 2024

A. Operating revenue from real estate leasing
Rental revenue
Rental revenue

5,232,657

6,268,199

Common area maintenance revenue

570,304

561,698

Parking revenue

206,214208,004

Facility use revenue

31,80733,406

Other rental revenue

7,247

6,048,231

6,551

7,077,860

Other lease business revenue
Utilities reimbursement

358,375

Other revenue

96,588

Total operating revenue from real estate leasing

351,432
454,964

95,624

6,503,195

447,056
7,524,917

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

452,917454,790

Utilities expenses

389,316

372,542

Taxes and dues

493,000

490,171

Repair expenses

308,817319,629

Trust fee

30,653

28,668Insurance premium

13,322

15,314

Depreciation

763,353

963,602

Other expenses

293,190

301,786

Total operating expenses from real estate leasing

2,744,572

2,946,506

C. Operating income (loss) from real estate leasing [A-B]

3,758,623

4,578,410*2 Breakdown of gain (loss) on sale of real estate
15th fiscal period (from February 1, 2023 to July 31, 2023)(Unit: thousand yen)
Funabashi Hi-Tech Park Factory II
Proceeds from sale of real estate

1,150,000

Cost of sale of real estate

688,594

Other sale expenses

47,239Gain on sale of real estate

414,166

16th fiscal period (from August 1, 2023 to January 31, 2024)(Unit: thousand yen)
Urban Park Gokokuji
Proceeds from sale of real estate

1,800,000

Cost of sale of real estate

1,488,569

Other sale expenses

46,106

Gain on sale of real estate

265,324- 14 -

(Unit: thousand yen)
Urban Park Koenji
Proceeds from sale of real estate

1,315,000

Cost of sale of real estate

1,181,858

Other sale expenses

23,950Gain on sale of real estate

109,191[Notes on the Statement of Unitholders’ Equity]*1 Total number of investment units authorized and total number of investment units issued and outstanding
15th fiscal period
From: February 1, 2023
To: July 31, 2023

16th fiscal period
From: August 1, 2023
To: January 31, 2024

Total number of investment units authorized

10,000,000 units

10,000,000 units

Total number of investment units issued and outstanding

1,921,689 units

2,372,000 units[Notes on the Statement of Cash Distributions]
15th fiscal period
From: February 1, 2023 To: July 31, 2023

16th fiscal period
From: August 1, 2023 To: January 31, 2024

*1 Reserve for temporary difference adjustment*1 Reserve for temporary difference adjustment
SAR provided 8,891,236 thousand yen as reserve for
SAR provided 8,891,236 thousand yen as reserve fortemporary difference adjustment in the 10th fiscal period.
temporary difference adjustment in the 10th fiscal period.
From the 11th fiscal period, SAR plans to reverse the same
From the 11th fiscal period, SAR plans to reverse the sameamount or more in each fiscal period over a period of up to 50 amount or more in each fiscal period over a period of up to 50
years. In the fiscal period under review, SAR decided to reverse years. In the fiscal period under review, SAR decided to reverse
88,912 thousand yen.
88,912 thousand yen.
[Notes on the Statement of Cash Flows]*1 Reconciliation of cash and cash equivalents at end of period to the amount of balance sheet items(Unit: thousand yen)
15th fiscal period
From: February 1, 2023
To: July 31, 2023
Cash and deposits

16th fiscal period
From: August 1, 2023
To: January 31, 2024

3,262,429

2,466,478

Cash and deposits in trust

8,525,306

9,186,964

Cash and cash equivalents

11,787,736

11,653,443[Notes on Lease Transactions]Operating leases (as lessee)
Future minimum lease payments(Unit: thousand yen)
15th fiscal period
As of July 31, 2023

16th fiscal period
As of January 31, 2024

Not later than 1 year-

173,606

Later than 1 year-

6,358,578

Total

-

6,532,184

Operating leases (as lessor)
Future minimum lease payments(Unit: thousand yen)
15th fiscal period
As of July 31, 2023
Not later than 1 year

16th fiscal period
As of January 31, 2024
5,715,787

6,246,687

Later than 1 year

9,733,645

22,516,811

Total

15,449,432

28,763,498- 15 -

[Notes on Financial Instruments]
1. Matters concerning status of financial instruments(1) Policy for handling financial instruments
SAR shall procure funds to allocate to acquisition of real estate related assets, repayment of interest-bearing liabilities,
etc. through mainly issuance of investment units, borrowing from financial institutions, issuance of investment
corporation bonds, etc. Upon procuring funds through interest-bearing liabilities, due consideration shall be given tofund procurement agility and financial stability.
(2) Description of financial instruments and associated risks, and risk management system
The funds procured through loans, which shall be for the purpose of mainly acquisition of assets, are exposed to liquidity
risk until the repayment date, but the concerned risks are managed by taking such measures as lengthening the
procurement periods and staggering the maturities. In addition, loans with floating interest rates are exposed to interest
rate fluctuation risk, but derivative transactions (interest rate swap transactions) are utilized as hedging instruments to,in effect, convert interest rates to fixed rates in order to mitigate that risk. For the hedge accounting approach, hedging
instruments, hedged items, hedging policy and method of assessing the effectiveness of hedging, please refer to “5.
Method of hedge accounting” described under “(7) Notes on Matters Concerning Significant Accounting Policies” earlier
in this document.
(3) Supplementary explanation to matters concerning fair value, etc. of financial instruments
Not applicable.
2. Matters concerning fair value, etc. of financial instruments
The carrying amount, fair value and the amount of difference between them are as follows. Because “cash and deposits”,“cash and deposits in trust” and “short-term borrowings” are cash and settled in a short period of time and the fair values
approximate the book values accordingly, notes on such are omitted.
15th fiscal period (As of July 31, 2023)(Unit: thousand yen)
Carrying amount

Fair value

Amount of difference(1) Current portion of long-term borrowings

14,340,000

14,340,000-(2) Investment corporation bonds

1,000,000

990,900(9,100)(3) Long-term borrowings

81,500,000

81,455,187(44,812)

96,840,000

96,786,087(53,912)

Liabilities total(4) Derivative transactions (*)
92,917
92,917(*) Assets and liabilities arising from derivative transactions are offset and presented in the net amount, with the balance
shown in parentheses ( ) when in a net liability position.
16th fiscal period (As of January 31, 2024)(Unit: thousand yen)
Carrying amount

Fair value

Amount of difference(1) Current portion of long-term borrowings

13,285,000

13,285,000-(2) Investment corporation bonds

1,000,000

989,600(10,400)

107,555,000

107,482,716(72,283)

121,840,000

121,757,316(82,683)

323,181

323,181-(3) Long-term borrowings
Liabilities total(4) Derivative transactions (*)(*) Assets and liabilities arising from derivative transactions are offset and presented in the net amount, with the balance shown in parentheses ( )when in a net liability position.
(Note 1) Method of calculation of the fair value of financial instruments(1) Current portion of long-term borrowings (3) Long-term borrowings
Of these, the fair values of those with fixed interest rates are calculated by the present value obtained by discounting the total principal andinterest by the rate expected when similar funds are additionally borrowed in correspondence with the remaining term. Since those with floatinginterest rates are under terms and conditions that interest rates be renewed every set period of time, the fair values are approximately the sameas the book value, and thus such are used.
(2) Investment corporation bonds
The reference value announced by Japan Securities Dealers Association is stated.
(3) Derivative transactions
Please refer to “Notes on Derivative Transactions” later in this document.

- 16 -

(Note 2) Amount of redemption/repayment of investment corporation bonds and loans to be due after the date of settlement of accounts
15th fiscal period (As of July 31, 2023)(Unit: thousand yen)
Later than 1 year
Later than 2
Later than 3
Later than 4
and not later
years and not
years and not
years and notthan 2 years
later than 3 years later than 4 years later than 5 years

Not later than
1 year

-

-

-

-

-

1,000,000

14,340,000

11,085,000

20,910,000

19,965,000

19,490,000

10,050,000

14,340,000

11,085,000

20,910,000

19,965,000

19,490,000

11,050,000

Investment corporation bonds
Long-term borrowings
Total

Later than
5 years

16th fiscal period (As of January 31, 2024)(Unit: thousand yen)
Later than 1 year
Later than 2
Later than 3
Later than 4
and not later
years and not
years and not
years and notthan 2 years
later than 3 years later than 4 years later than 5 years

Not later than
1 year----1,000,000-

13,285,000

19,150,000

20,275,000

21,650,000

21,680,000

24,800,000

13,285,000

19,150,000

20,275,000

21,650,000

22,680,000

24,800,000

Investment corporation bonds
Long-term borrowings
Total

Later than
5 years[Notes on Securities]
15th fiscal period (As of July 31, 2023)
Notes are omitted because they lack significance.
16th fiscal period (As of January 31, 2024)
Notes are omitted because they lack significance.
[Notes on Derivative Transactions]
1. Derivative transactions to which hedge accounting is not applied
15th fiscal period (As of July 31, 2023)
Not applicable.
16th fiscal period (As of January 31, 2024)
Not applicable.
2. Derivative transactions to which hedge accounting is applied
15th fiscal period (As of July 31, 2023)
The following is the contract amount or the amount equivalent to the principal provided in the contract as of the date ofsettlement of accounts for each hedge accounting approach.
(Unit: thousand yen)Hedge
accounting
approachPrinciple
accounting

Type, etc. of derivativetransaction

Main hedged
itemInterest rate swap transaction
Long-term(floating receivable; fixed payable) borrowings

Contract amount, etc. (Note 1)
Of which, due
after 1 year
82,305,000

68,965,000

Fair value(Note 2)
92,917(Note 1) Contract amount, etc. are based on notional principal.
(Note 2) Fair value is calculated based on the price quoted by lending financial institutions, etc.

16th fiscal period (As of January 31, 2024)
The following is the contract amount or the amount equivalent to the principal provided in the contract as of the date ofsettlement of accounts for each hedge accounting approach.
(Unit: thousand yen)Hedge
accounting
approachPrinciple
accounting

Type, etc. of derivative transaction

Main hedged
itemInterest rate swap transaction
Long-term(floating receivable; fixed payable) borrowings

Contract amount, etc. (Note 1)
Of which, due
after 1 year
77,465,000(Note 1) Contract amount, etc. are based on notional principal.
(Note 2) Fair value is calculated based on the price quoted by lending financial institutions, etc.

- 17 -

68,965,000

Fair value(Note 2)
323,181

[Notes on Retirement Benefits]
15th fiscal period (As of July 31, 2023)
Not applicable.
16th fiscal period (As of January 31, 2024)
Not applicable.
[Notes on Tax-Effect Accounting]
1. Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities(Unit: thousand yen)
15th fiscal period
As of July 31, 2023

16th fiscal period
As of January 31, 2024

Deferred tax assets
Valuation adjustment upon merger

1,090,958

1,069,936

-

2,211

Leasehold interests in land
Acquisition cost of securities

3,030

4,518

Asset retirement obligations-

31,135

Deferred gains or losses on hedges

30,895

6,303

Deferred tax assets, subtotal

1,124,884

1,114,105

Valuation allowance(1,124,884)(1,114,105)

Deferred tax assets, total--

Deferred tax assets, net--

2. Breakdown of major components that caused any significant differences between the statutory tax rate and the effective
income tax rate after application of tax-effect accounting(Unit: %)15th fiscal period
As of July 31, 2023
Statutory tax rate

16th fiscal period
As of January 31, 2024
31.46

31.46

Deductible distributions payable(31.19)(31.14)

Reversal of excess depreciation(0.90)(0.40)

Other

0.65

0.09

Effective income tax rate after application oftax-effect accounting

0.02

0.02

[Adjustments][Notes on Share of Profit or Loss of Entities Accounted for Using Equity Method, etc.]
15th fiscal period (As of July 31, 2023)
Notes are omitted because they lack significance.
16th fiscal period (As of January 31, 2024)
Notes are omitted because they lack significance.
[Notes on Related-Party Transactions]
1. Parent company, major corporate unitholders, etc.
15th fiscal period (from February 1, 2023 to July 31, 2023)
Not applicable.
16th fiscal period (from August 1, 2023 to January 31, 2024)
Not applicable.

- 18 -

2. Affiliated companies, etc.
15th fiscal period (from February 1, 2023 to July 31, 2023)
Not applicable.
16th fiscal period (from August 1, 2023 to January 31, 2024)
Not applicable.
3. Fellow subsidiaries, etc.
15th fiscal period (from February 1, 2023 to July 31, 2023)
Not applicable.
16th fiscal period (from August 1, 2023 to January 31, 2024)
Not applicable.
4. Directors, major individual unitholders, etc.
15th fiscal period (from February 1, 2023 to July 31, 2023)
Type

Director,or close
relative of
director

Name ofCapital stockcompany,
Address or investments
etc. orin capital
personAtsushi
Kato--

Description ofbusiness or
occupation
Executive Directorof SAR, andPresident and CEOof the AssetManager

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

Description oftransaction

Transaction
amount(thousandyen)

Account
item

Balance at
end of period(thousand
yen)

0.03%

Payment of asset
management fee
to the AssetManager(Note 1)445,612 Accounts(Note 2)
payable (Note 3)
other456,595(Note 2)

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

Description oftransaction

Transaction
amount(thousandyen)

16th fiscal period (from August 1, 2023 to January 31, 2024)
Type

Name ofcompany,
etc. orpersonAddress

Capital stock
or investments
in capital

Description ofbusiness or
occupation

Account
item

Balance at
end of period(thousandyen)

Executive Director
Payment of asset
of SAR, andmanagement fee
794,310 Accounts
564,000
President and CEO
0.03%
to the Asset(Note 2)
payable (Note 2)of the AssetManager(Note 3)otherManager(Note 1)
(Note 1) The transaction was conducted by Atsushi Kato as President and CEO of a third party (the Asset Manager), and the transaction amount isbased on the terms and conditions provided in the Articles of Incorporation of SAR.
(Note 2) Of the amounts above, the transaction amount does not include consumption tax, while the balance at the end of the period includes
consumption tax.
(Note 3) The asset management fee for the 15th fiscal period includes the acquisition incentive portion included in the book value of preferred equity
securities in the amount of 15,625 thousand yen and the transfer incentive portion for real estate, etc. in the amount of 11,500 thousand
yen. The asset management fee for the 16th fiscal period includes the acquisition incentive portion included in the book value of individual
real estate, etc. in the amount of 250,433 thousand yen and the transfer incentive portion for real estate, etc. in the amount of 31,150
thousand yen.
Director,or close
relative of
director

Atsushi
Kato[Notes on Asset Retirement Obligations]
1. Outline of the asset retirement obligations
SAR concluded a fixed-term subleasehold agreement for the land of its asset Best Western Plus Fukuoka Tenjin-minami,
and recognized asset retirement obligations in connection with the obligation to restore the site to its original conditionat the end of the sublease term.
2. Method of calculating asset retirement obligations
Asset retirement obligations are calculated using the expected period of use, which is estimated at 55 years from theexpiration of the fixed-term subleasehold agreement, and a discount rate of 1.925%.

- 19 -

3. Changes in total asset retirement obligations(Unit: thousand yen)
15th fiscal period
From: February 1, 2023
To: July 31, 2023

16th fiscal period
From: August 1, 2023
To: January 31, 2024

Balance at beginning of period--

Increase due to purchases of property, plant and equipment-

98,187

Adjustment due to passage of time-782

Balance at end of period-

98,969[Notes on Investments in Rental Properties]
SAR owns rental real estate, etc. for the purpose of earning revenue from leasing. The carrying amount, amount of increase(decrease) during the period and fair value of these investments in rental properties are as follows:(Unit: thousand yen)
15th fiscal period
From: February 1, 2023
To: July 31, 2023

16th fiscal period
From: August 1, 2023
To: January 31, 2024

Carrying amount
Balance at beginning of period
Amount of increase (decrease) during period
Balance at end of period
Fair value at end of period

194,843,394

194,178,685(664,708)

47,470,259

194,178,685

241,648,945

215,096,000

266,696,000(Note 1) Carrying amount is the amount of the cost of acquisition, less accumulated depreciation.
(Note 2) Of the amount of increase (decrease) in investments in rental properties during the 15th fiscal period, the amount of increase is mainly
attributable to capital expenditures (787,991 thousand yen), while the amount of decrease is mainly attributable to disposition of real estate
beneficiary interest in trust of a property (688,594 thousand yen) and depreciation (763,353 thousand yen). During the 16th fiscal period, theamount of increase is mainly attributable to acquisition of real estate beneficiary interest in trust of 11 properties (49,825,623 thousand yen),capital expenditures (1,107,190 thousand yen, which includes 275,884 thousand yen for extension work), and acquisition of leasehold interestfor leased land of property held (171,477 thousand yen), while the amount of decrease is mainly attributable to disposition of real estate
beneficiary interest in trust of 2 properties (2,670,427 thousand yen) and depreciation (963,602 thousand yen).
(Note 3) Fair value at the end of the period is the appraisal value by an outside real estate appraiser. Of the fair value at the end of the 15th fiscal
period, that of Urban Park Gokokuji is based on the transfer price (1,800,000 thousand yen) stated in the trust beneficiary interest sale andpurchase agreement dated March 16, 2023 and that of Urban Park Koenji is based on the transfer price (1,315,000 thousand yen) stated in thetrust beneficiary interest sale and purchase agreement dated August 7, 2023.

Income (loss) concerning investments in rental properties is as stated in “Notes on the Statement of Income and Retained
Earnings” earlier in this document.
[Notes on Revenue Recognition]
1. Breakdown information on revenue from contracts with customers
15th fiscal period (from February 1, 2023 to July 31, 2023)(Unit: thousand yen)
Revenue from contracts with customers(Note 1)

Sales to external customers

Proceeds from sale of real estate (Note 2)

414,166

414,166

Utilities reimbursement

358,375

358,375

Other-

6,174,384

Total

772,5426,946,926(Note 1) Rental revenue, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13) are excluded from the above
amount as such revenue is not subject to the Revenue Recognition Accounting Standard. Revenue from contracts with customers mainly
represents proceeds from sale of real estate and utilities income.
(Note 2) Proceeds from sale of real estate is recorded as gain on sale of property in the statement of income and retained earnings. Therefore, theamount calculated by deducting the cost of sale of real estate and other sale expenses from the proceeds from sale of real estate is indicated.

- 20 -

16th fiscal period (from August 1, 2023 to January 31, 2024)(Unit: thousand yen)
Revenue from contracts with customers(Note 1)
Proceeds from sale of real estate (Note 2)

374,516

Utilities reimbursement

Sales to external customers
374,516

351,432

351,432

Other-

7,238,921

Total

725,948

7,964,869(Note 1) Rental revenue, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13) are excluded from the above amountas such revenue is not subject to the Revenue Recognition Accounting Standard. Revenue from contracts with customers mainly represents
proceeds from sale of real estate and utilities income.
(Note 2) Proceeds from sale of real estate is recorded as gain on sale of property in the statement of income and retained earnings. Therefore, theamount calculated by deducting the cost of sale of real estate and other sale expenses from the proceeds from sale of real estate is indicated.

2. Foundational information for understanding revenue from contracts with customers
The information is as indicated in “(7) Notes on Matters Concerning Significant Accounting Policies” earlier in this document.
3. Information on relationship of fulfillment of performance obligations based on contracts with customers with cashflow
generated from said contracts and amount and period of revenue expected to be recognized in the next fiscal period or
thereafter from contracts with customers existing at the end of the current fiscal period.
(1) Balance of contract assets and contract liabilities, etc.
(Unit: thousand yen)
15th fiscal period
From: February 1, 2023
To: July 31, 2023

16th fiscal period
From: August 1, 2023
To: January 31, 2024

Claims generated from contracts with customers(balance at beginning of fiscal period)

87,85871,460Claims generated from contracts with customers(balance at end of fiscal period)

71,46062,199Contract assets (balance at beginning of fiscal period)--

Contract assets (balance at end of fiscal period)--

Contract liabilities (balance at beginning of fiscal period)--

Contract liabilities (balance at end of fiscal period)--(2) Transaction value allocated to remaining performance obligations
Not applicable.
SAR does not include contracts whose terms are initially expected to be one year or less in the note on transaction value
allocated to remaining performance obligations as an expedient in practice. Also, with regard to utilities income, as SAR
has the right to receive from customers an amount directly corresponding to the value for the lessees who are
customers of portions for which performance is complete by the end of the fiscal period, the amount it has the right toclaim according to Paragraph 19 of the Application Guidelines of the Accounting Standard for Revenue Recognition isrecognized as revenue. Accordingly, such is not included in the note on transaction value allocated to remaining
performance obligations through application of the provisions of Paragraph 80-22 (2) of the Accounting Standard for
Revenue Recognition.
[Notes on Segment Information]
1. Segment information
Segment information is omitted because SAR operates a single segment, which is the real estate leasing business.
2. Related information
15th fiscal period (from February 1, 2023 to July 31, 2023)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single product andservice category are in excess of 90% of operating revenue on the statement of income and retained earnings.

- 21 -

(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income and retained earnings.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about each major customer
Information about each major customer is omitted because all net sales to a single external customer are less than 10%of the operating revenue on the statement of income and retained earnings.
16th fiscal period (from August 1, 2023 to January 31, 2024)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single product andservice category are in excess of 90% of operating revenue on the statement of income and retained earnings.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income and retained earnings.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about each major customer
Information about each major customer is omitted because all net sales to a single external customer are less than 10%of the operating revenue on the statement of income and retained earnings.
[Notes on Per Unit Information]
15th fiscal period
From: February 1, 2023
To: July 31, 2023

16th fiscal period
From: August 1, 2023
To: January 31, 2024

Net assets per unit

53,715 yen

53,595 yen

Net income per unit

1,599 yen

1,518 yen

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

15th fiscal period
From: February 1, 2023
To: July 31, 2023
Net income (thousand yen)

16th fiscal period
From: August 1, 2023
To: January 31, 2024

3,073,236

3,527,879--

Net income attributable to common investment units (thousand yen)

3,073,236

3,527,879

Average number of investment units during period (units)

1,921,689

2,323,053

Amount not attributable to common unitholders (thousand yen)

[Notes on Significant Subsequent Events]
Not applicable.

- 22 -

(9) Changes in Total Number of Investment Units Issued and Outstanding
The following are the changes in unitholders’ capital and total number of investment units issued and outstanding for themost recent five years.

Date

Event

Total number of investment
units issued and outstanding(units)Increase(Decrease)

BalanceUnitholders’ capital(thousand yen)
Increase(Decrease)

Remarks

BalanceAugust 1, 2020

Investment unit split

540,824

1,081,648-

52,745,966(Note 1)

August 1, 2020

Merger592,741

1,674,389-

52,745,966(Note 2)

August 17, 2021

Capital increase
through public offering

115,000

1,789,389

6,369,735

59,115,701(Note 3)

August 16, 2022

Capital increase
through public offering

132,300

1,921,689

7,007,666

66,123,367(Note 4)

August 21, 2023

Capital increase
through public offering

450,3112,372,000

23,192,817

89,316,185(Note 5)(Note 1) SAR has conducted an investment unit split to split one investment unit into two investment units.
(Note 2) Due to the merger dated August 1, 2020, SAR allocated and delivered 1.78 SAR investment units for every 1.0 SSR investment unit. As a result,
SAR issued 592,741 new investment units.
(Note 3) New investment units were issued through public offering at an issue price of 57,330 yen (paid-in amount of 55,389 yen) per unit for the
purpose of procuring funds for acquisition of new properties.
(Note 4) New investment units were issued through public offering at an issue price of 54,795 yen (paid-in amount of 52,968 yen) per unit for the
purpose of procuring funds for acquisition of new properties.
(Note 5) New investment units were issued through public offering at an issue price of 53,235yen (paid-in amount of 51,504 yen) per unit for the purposeof procuring funds for acquisition of new properties.

- 23 -

3. Reference Information(1) Investment Status
15th fiscal period(As of July 31, 2023)
Type ofasset

Total amountheld(million yen)
(Note 2)As apercentage of
total assets (%)(Note 3)

Total amountheld(million yen)
(Note 2)As apercentage of
total assets (%)(Note 3)

Greater Tokyo

56,92227.2

56,99622.0

Major Metropolitan Areas

10,814

5.2

10,768

4.2

Other Areas

7,734

3.7

7,995

3.1

Greater Tokyo

3,000

1.4

2,998

1.2

Major Metropolitan Areas

9,572

4.6

9,555

3.7

Other Areas

15,1107.2

15,178

5.9Greater Tokyo

32,19015.4

33,455

12.9

Major Metropolitan Areas

6,209

3.0

6,186

2.4

Logistics facility Greater Tokyo

28,81813.8

29,098

11.2

Greater Tokyo

12,6396.0

30,516

11.8

Major Metropolitan Areas

11,166

5.3

20,051

7.7

Primary use

OfficeRetailReal estatein trust

Geographic area
(Note 1)

16th fiscal period(As of January 31, 2024)

Residence

Hotel

Other Areas--

18,847

7.3

194,17892.8

241,648

93.2

1,588

0.8

1,588

0.6

740

0.4

1,170

0.5

Deposits and other assets

12,752

6.1

14,748

5.7

Total amount of assets

209,259

100.0

259,155

100.0

Amount(million yen)

As apercentage of
total assets (%)

Amount(million yen)

As apercentage of
total assets (%)

Total amount of liabilities (Note 4)

106,03450.7

132,027

50.9

Total amount of net assets (Note 4)

103,22449.3

127,127

49.1

SubtotalPreferred equity securities
Mezzanine loan debt

(Note 1) “Greater Tokyo” refers to Tokyo, Kanagawa, Saitama and Chiba Prefectures. Major Metropolitan Areas consist of Osaka Area, Fukuoka Area andNagoya Area, and Osaka Area refers to Osaka City, Osaka, Fukuoka Area refers to Fukuoka City, Fukuoka and Nagoya Area refers to Nagoya City,
Aichi. In addition, for residence, logistics facility and hotel, each also refers to nearby areas. The same shall apply hereinafter.
(Note 2) “Total amount held” is the carrying amount as at the date of settlement of accounts (in the case of real estate in trust, then the depreciated bookvalue), rounded down to the nearest million yen.
(Note 3) “As a percentage of total assets” is the carrying amount of the concerned assets expressed as a percentage of the total amount of assets, rounded
to the first decimal place.
(Note 4) “Total amount of liabilities” and “Total amount of net assets” are according to total liabilities and total net assets on the balance sheet.

- 24 -

(2) Investment Assets① Investment securities
Unrealized
gain or loss Remarks(million yen)

MEZ-07

Star Asia Mezzanine Loan
Debt Investment Series 7

Corporate
bond

-

-

400

-

400

-

Star Asia Mezzanine Loan
Debt Investment Series 8Class A Beneficial Interest

Trustbeneficiaryinterest

-

-

430

-

430

-

Star Asia Mezzanine Loan
Debt Investment Series 8Class B Beneficial Interest

Trustbeneficiaryinterest

-

-

340

-

340

-

GSA JP Project 1 Tokutei
Mokuteki Kaisha (TMK)
Preferred Equity Securities

Preferredequitysecurities

13,328,342

119

1,588

134

1,789

201

TK-03

Quantity(Units)Fair value (million yen)

Name of the security

MEZ-08Type ofasset

Book value(million yen)

Asset
no.

Unit price(yen)AmountUnit priceAmount(Note 1)
(Note 4)(Note 2)
(Note 4)(Note 3)(Note 5)

Total
2,758
2,959
201
(Note 1) The underlying assets are trust beneficiary interests in a trust mainly composed of Quintessa Hotel Tokyo Haneda Comic & Books.
(Note 2) The underlying assets are trust beneficiary interests in a trust mainly composed of Centurion Hotel Grand Akasaka. SAR acquired A Beneficial
Interest on September 13, 2023, and B Beneficial Interest on February 20, 2023.
(Note 3) The underlying assets are trust beneficiary interests in a trust mainly composed of HAKUSAN HOUSE.
(Note 4) Because interest income etc. from mezzanine loan debt are based on floating interest rates, the fair value is approximately the same as theacquisition cost and thus stated at that acquisition cost.
(Note 5) The fair value of preferred equity securities is the amount that is attributable to the equity held by SAR out of the net asset value of the issuerof preferred equity securities based on the appraisal value of the underlying assets.

- 25 -

② Real estate(a) Overview of real estate (acquisition price, etc.)
Use

OfficePropertyno.
(Note 1)

Property nameLocation(Note 2)

OFC-01

Minami-Azabu Shibuya Building Minato Ward, Tokyo

OFC-03

Honmachibashi Tower

OFC-04
OFC-06

Share ofReal estate
investment appraisal value, etc.
(%)
(million yen)
(Note 4)(Note 5)Acquisition date

2,973

1.2

3,110

January 14, 2016

Chuo Ward, Osaka City,
Osaka

6,065

2.5

7,100

January 14, 2016

Nishi-Shinjuku Matsuya
Building

Shibuya Ward, Tokyo

1,763

0.7

2,740

April 20, 2016

Urban Center Shibuya East

Shibuya Ward, Tokyo

2,042

0.8

3,290

April 20, 2016

OFC-08

Urban Center Yokohama West

Kanagawa Ward,
Yokohama City, Kanagawa

6,320

2.6

8,420

April 20, 2016

OFC-09Hakata-eki East Place

Hakata Ward, Fukuoka
City, Fukuoka

2,286

0.9

3,290

April 6, 2017

OFC-10Nihonbashi Hamacho Park
Building

Chuo Ward, Tokyo

1,450

0.6

1,510

February 2, 2018

OFC-11

Amusement Media Gakuin
HonkanShibuya Ward, Tokyo

2,580

1.1

2,810

September 6,
2018

OFC-12

Higashi-Kobe Center Building

Higashinada Ward, Kobe
City, Hyogo

7,600

3.2

7,530

September 6,2018 and
December 1, 2023

OFC-13

Amusement Media Gakuin
Shinkan

Shibuya Ward, Tokyo

1,020

0.4

1,230

February 1, 2019

OFC-14

Urban Center Shinjuku(Note 6)

Shinjuku Ward, Tokyo

11,2004.6

11,700August 1, 2020

OFC-15

Urban Center Kanda Suda-cho

Chiyoda Ward, Tokyo

5,350

2.2

5,440

August 1, 2020

OFC-16

Urban Center Kanda
Tsukasamachi

Chiyoda Ward, Tokyo

4,590

1.9

4,600

August 1, 2020

OFC-17

Takadanobaba AccessShinjuku Ward, Tokyo

3,990

1.7

3,920

August 1, 2020

OFC-18

Azabu Amerex BLDG.

Minato Ward, Tokyo

2,780

1.2

2,890

August 1, 2020

OFC-19Hiei-Kudan BLDG.

Chiyoda Ward, Tokyo

2,400

1.0

2,400

August 1, 2020

OFC-20Urban Center Shin-Yokohama

Kohoku Ward, Yokohama
City, Kanagawa

2,300

1.0

2,570

August 1, 2020

OFC-21The Portal Akihabara

Chiyoda Ward, Tokyo

1,510

0.6

1,490

August 1, 2020

OFC-22

Urban Center Tachikawa

Tachikawa City, Tokyo

1,804

0.7

2,050

August 19, 2021

OFC-23

Urban Center Hakata

Hakata Ward, Fukuoka
City, Fukuoka

2,870

1.2

3,280

August 19, 2021

OFC-24

Urban Center Fujisawa

Fujisawa City, Kanagawa

August 18, 2022

Subtotal

RetailAcquisition
price(million yen)
(Note 3)

2,054

0.9

2,200

74,94731.1

83,570-

RTL-01

La Park Kishiwada

Kishiwada City, Osaka

5,400

2.2

5,170

August 1, 2020

RTL-02

Suroy Mall Chikushino

Chikushino City, Fukuoka

6,550

2.7

6,580

August 1, 2020

RTL-03

Seiyu Minakuchi

Koka City, Shiga

3,320

1.4

3,320

August 1, 2020

RTL-05

BAGUS Ikebukuro West

Toshima Ward, Tokyo

2,984

1.2

3,500

August 19, 2021

abeno nini (Retail)Abeno Ward, Osaka City,
Osaka

9,500

3.9

10,500August 18, 2022

27,754

11.5

29,070-

RTL-06

Subtotal- 26 -

Use

Acquisition
price(million yen)
(Note 3)

Share ofReal estate
investment appraisal value, etc.
(%)
(million yen)
(Note 4)(Note 5)Residence

Propertyno.
(Note 1)

Property name

RSC-01

Urban Park Azabujuban

Minato Ward, Tokyo

2,045

0.8

2,950

January 14, 2016

RSC-02

Urban Park Daikanyama

Shibuya Ward, Tokyo

6,315

2.6

10,100January 14, 2016

RSC-05

Urban Park Namba

Naniwa Ward, Osaka City,
Osaka

1,490

0.6

1,540

April 20, 2016

RSC-07

Urban Park Kashiwa

Kashiwa City, Chiba

1,186

0.5

1,210

April 6, 2017

RSC-08

Urban Park Ryokuchi Koen

Suita City, Osaka

1,550

0.6

1,730

February 2, 2018

RSC-10Urban Park Ichigao

Aoba Ward, Yokohama
City, Kanagawa

1,810

0.8

2,180

March 13, 2020

RSC-11

Urban Park Gyotoku

Ichikawa City, Chiba

1,430

0.6

1,620

March 13, 2020

RSC-12

Shiroi Logiman

Shiroi City, Chiba

2,470

1.0

2,520

August 1, 2020

RSC-13

Urban Park Sekime

Joto Ward, Osaka City,
Osaka

2,150

0.9

2,460

August 1, 2020

RSC-14

Urban Park Imazato

Ikuno Ward, Osaka City,
Osaka

993

0.4

1,110

August 1, 2020

RSC-15

Urban Park Yoyogi

Shibuya Ward, Tokyo

1,740

0.7

1,990

August 1, 2020

RSC-16

Urban Park Tokiwadai Koen

Hodogaya Ward,
Yokohama City, Kanagawa

3,506

1.5

4,190 October 16, 2020

RSC-17

Urban Park Mitsuike Koen

Tsurumi Ward, Yokohama
City, Kanagawa

3,160

1.3

3,690

January 8, 2021

RSC-18

Urban Park Ryogoku

Sumida Ward, Tokyo

1,115

0.5

1,310

August 19, 2021

RSC-19Urban Park Mizonokuchi

Takatsu Ward, Kawasaki
City, Kanagawa

2,019

0.8

2,100

August 19, 2021

RSC-20Urban Park MiyamaedairaMiyamae Ward, Kawasaki
City, Kanagawa

1,060

0.4

1,250

August 19, 2021

RSC-21

Urban Park Tsurumi

Tsurumi Ward, Yokohama
City, Kanagawa

1,113

0.5

1,190

August 19, 2021

RSC-22

Urban Park Mitaka

Mitaka City, Tokyo

743

0.3

1,010

September 1,
2023

RSC-23

Urban Park Kamata Minami I

Ota Ward, Tokyo

641

0.3

879 December 1, 2023

RSC-24

Urban Park Kamata Minami II

Ota Ward, Tokyo

1,375

0.6

1,770 December 1, 2023

RSC-25

Urban Park Umejima

Adachi Ward, Tokyo

1,032

0.4

1,150 December 1, 2023

Location(Note 2)

Subtotal

Acquisition date

38,943

16.1

47,949

-

6,942

2.9

7,650

January 14, 2016

Logistics facility

LGC-01

Iwatsuki Logistics

Iwatsuki Ward, Saitama
City, Saitama

LGC-02

Yokohama Logistics

Kanagawa Ward,
Yokohama City, Kanagawa

3,560

1.5

4,260

January 14, 2016

LGC-03

Funabashi Logistics

Funabashi City, Chiba

7,875

3.3

8,770

January 14, 2016

LGC-04

Baraki Logistics

Ichikawa City, Chiba

4,700

1.9

5,220

April 6, 2017

LGC-05Tokorozawa Logistics

Tokorozawa City, Saitama

1,300

0.5

1,550

April 6, 2017

LGC-07

Funabashi Nishiura Logistics II

Funabashi City, Chiba

821

0.3

907

February 2, 2018

LGC-08

Matsubushi Logistics

Kitakatsushika-gun,
Saitama

2,755

1.1

3,300

February 2, 2018

LGC-09Funabashi Hi-Tech Park Factory
I

Funabashi City, Chiba

1,997

0.8

August 1, 2020
2,200 and December 20,
2023

29,95012.4

33,857

Subtotal- 27 -

-

Use

Hotel

Acquisition
price(million yen)
(Note 3)

Share ofReal estate
investment appraisal value, etc.
(%)
(million yen)
(Note 4)(Note 5)

Propertyno.
(Note 1)

Property name

HTL-01R&B Hotel Umeda East

Kita Ward, Osaka City,
Osaka

2,069

0.9

2,320

January 14, 2016

HTL-02

Smile Hotel Namba

Naniwa Ward, Osaka City,
Osaka

1,750

0.7

1,490

January 14, 2016

HTL-03REMBRANDT STYLE Tokyo
Nishikasai

Edogawa Ward, Tokyo

3,827

1.6

3,460

April 6, 2017

HTL-04

BEST WESTERN Yokohama

Tsurumi Ward, Yokohama
City, Kanagawa

3,248

1.3

3,160

April 6, 2017

HTL-05The BREAKFAST HOTELFUKUOKA TENJIN

Chuo Ward, Fukuoka City,
Fukuoka

1,970

0.8

1,990

September 6,
2018

HTL-06

GLANSIT AKIHABARA

Chiyoda Ward, Tokyo

2,500

1.0

2,440

September 6,
2018

HTL-07REMBRANDT STYLE Tokyo
Nishikasai Grande

Edogawa Ward, Tokyo

3,180

1.3

3,110

September 6,
2018

HTL-08

KOKO HOTEL Osaka Namba

Naniwa Ward, Osaka City,
Osaka

2,000

0.8

1,560

September 6,
2018

HTL-09abeno nini (Hotel)

Abeno Ward, Osaka City,
Osaka

3,600

1.5

3,850

August 18, 2022

HTL-10

KOKO HOTEL Ginza 1-chome

Chuo Ward, Tokyo

17,8007.4

19,100

September 1,
2023

HTL-11

KOKO HOTEL Sapporo Ekimae

Chuo Ward, Sapporo City,
Hokkaido

6,700

2.8

7,080

September 1,
2023

HTL-12

KOKO HOTEL Fukuoka Tenjin

Chuo Ward, Fukuoka City,
Fukuoka

5,000

2.1

5,410

September 1,
2023

HTL-13

KOKO HOTEL Hiroshima Ekimae

Minami Ward, Hiroshima
City, Hiroshima

4,100

1.7

4,320

September 1,
2023

HTL-14

KOKO HOTEL Kagoshima
Tenmonkan

Kagoshima City,
Kagoshima

3,800

1.6

4,280

September 1,
2023

HTL-15

Fino Hotel Sapporo Odori

Chuo Ward, Sapporo City,
Hokkaido

4,200

1.7

4,270

September 1,
2023

HTL-16

Best Western Plus Fukuoka
Tenjin-minami

Chuo Ward, Fukuoka City,
Fukuoka

3,800

1.6

4,410

September 1,
2023

69,54428.8

72,250-Location(Note 2)

Subtotal

Acquisition date

Total
241,138100.0
266,696(Note 1) “Property no.” is assigned to SAR’s investment assets by categorizing into office (OFC), retail facility (RTL), residence (RSC), logistics facility(LGC) and hotel (HTL), and numbering in order by category. The same shall apply hereinafter.
(Note 2) “Location” is the smallest independent administrative district in which each investment asset is located.
(Note 3) “Acquisition price” indicates the sum total of the sale and purchase price, etc. (not including consumption tax and local consumption tax)
stated in the sale and purchase agreement, etc. for each investment asset (or SAR's receipt price in the case of properties that were succeeded
to due to absorption-type merger with SAR as the surviving corporation; or the total sale and purchase price divided proportionally based on
the ratio of the appraisal value of the properties at the time of acquisition in the case of Minami-Azabu Shibuya Building, since the price foreach investment asset among multiple assets is not set in the sale and purchase agreement) plus construction expenses for extension work.
(Note 4) “Share of investment” is the acquisition price of the investment asset indicated as a percentage of the total of acquisition price, rounded to
the first decimal place.
(Note 5) Daiwa Real Estate Appraisal Co., Ltd., Japan Real Estate Institute and The Tanizawa Sogo Appraisal Co., Ltd. are entrusted with appraisals. Realestate appraisal values are the figures indicated in the real estate appraisal report with December 15, 2023 as the date of value for Funabashi
Hi-Tech Park Factory I and January 31, 2024 as the date of value for other properties and these figures are rounded to the nearest million
yen. For details, please refer to “(d) Summary of Real Estate Appraisal Reports, Etc.”(Note 6) The name was changed on January 1, 2024 (former property name: Seishin Building). The same shall apply hereinafter.

- 28 -

(b) Portfolio Summarya. By Geographic Area
Geographic area

Share
(%)
(Note 1)

Acquisition price(million yen)Greater Tokyo (Note 2)

155,108

63.6

Major
Metropolitan
Areas

47,093

19.3

Other Areas

41,670

17.1

Total

243,871

100.0

Osaka Area, Fukuoka Area
and Nagoya Area

(Note 1) “Share” is calculated on the basis of acquisition price, rounded to the first decimal place. Accordingly, the shares may not add up to 100%.
The same shall apply hereinafter in “c. By Asset Type (Use).”(Note 2) 2 mezzanine loan debts (total acquisition price: 1,170 million yen) and 1 preferred equity security (acquisition price: 1,562 million yen) are
included.

(a) OfficeGeographic area

Acquisition price(million yen)Greater Tokyo

Share
(%)

56,126

74.9

11,221

15.0

Other Areas

7,600

10.1

Total

74,947

100.0

Major
Metropolitan
Areas

Osaka Area, Fukuoka
Area and Nagoya Area(b) Retail
Geographic area

Acquisition price(million yen)Greater Tokyo

Share
(%)

2,984

10.8

9,500

34.2

Other Areas

15,270

55.0

Total

27,754

100.0

Major
Metropolitan
Areas

Osaka Area, Fukuoka
Area and Nagoya Area(c) Residence
Geographic area

Acquisition price(million yen)Greater Tokyo
Major
Metropolitan
Areas

Osaka Area, Fukuoka
Area and Nagoya Area

32,760

84.1

6,183

15.9

Other Areas
Total

Share
(%)

-

-

38,943100.0(d) Logistics facility
Geographic area

Acquisition price(million yen)Greater Tokyo
Major
Metropolitan
Areas

Osaka Area, Fukuoka
Area and Nagoya Area

Other Areas
Total- 29 -

Share(%)

29,950

100.0

-

-

-

-

29,950100.0(e) Hotel
Acquisition price(million yen)

Geographic area

Share
(%)

Greater Tokyo (Note)

31,725

44.9

Major
Metropolitan
Areas

20,18928.6

Other Areas

18,800

26.6

Total

70,714100.0

Osaka Area, Fukuoka
Area and Nagoya Area

(Note) 2 mezzanine loan debts (Total acquisition price: 1,170 million yen) are included.

(f) Student residence
Acquisition price(million yen)

Geographic area
Greater Tokyo (Note)
Major
Metropolitan
Areas

Share
(%)

1,562

100.0

-

-

-

-

1,562

100.0

Osaka Area, Fukuoka
Area and Nagoya Area

Other Areas
Total(Note) A preferred equity security.

b. By Size
Number ofproperties

Acquisition priceShare(%) (Note 1)

10 billion yen or more

2

2.7

5 billion yen or more but less than 10 billion yen

12

16.2

1 billion yen or more but less than 5 billion yen (Note 2)

54

73.0

Less than 1 billion yen (Note 3)

6

8.1

Total

74

100.0

(Note 1) “Share” is calculated on the basis of number of properties.
(Note 2) A preferred equity security is included.
(Note 3) 2 mezzanine loan debts are included.

c. By Asset Type (Use)Use
OfficeNumber ofproperties

Acquisition price(million yen)

Share
(%)

21

74,947

30.7

Retail527,754

11.4

Residence

21

38,94316.0

Logistics facility

829,95012.3

Hotel (Note 1)

18

70,71429.0

Student residence (Note 2)

1

1,562

0.6

Total

74

243,870100.0(Note 1) 2 mezzanine loan debts (Total acquisition price: 1,170 million yen) are included.
(Note 2) A preferred equity security.

- 30 -

(c) Status of Leasing

Propertyno.

OFC-01

Rentalrevenue(thousandyen)(Note 2)

Security
andguarantee
deposits(thousandyen)(Note 3)

Leased area(m2)
(Note 4)

Leasablearea (m2)(Note 5)

Occupancy
rate(%)(Note 6)

Property nameConstruction
completion

Numberof tenants(Note 1)

Minami-Azabu Shibuya Building

June 1993

6

99,582

128,023

3,263.08

3,263.08

100.0

249,511

260,488

10,489.58

10,489.58

100.0

122,357

139,5213,547.74

3,547.74

100.0

OFC-03

Honmachibashi Tower

February 2010

6(Note 7)

OFC-04

Nishi-Shinjuku Matsuya
Building

May 198710

OFC-06

Urban Center Shibuya East

July 1993

4

74,455

116,611

1,612.88

1,612.88

100.0

OFC-08

Urban Center Yokohama West

November 1994

20

232,635

247,424

8,672.01

8,672.01

100.0

OFC-09Hakata-eki East Place

February 1986

19

114,087

115,846

4,633.12

4,633.12

100.0

OFC-10Nihonbashi Hamacho Park
Building

July 1992

4

52,08977,523

1,913.44

1,913.44

100.0

OFC-11

Amusement Media Gakuin
HonkanNovember 1994

1

Not
disclosed(Note 9)Not
disclosed(Note 9)1,892.18

100.0

OFC-12

Higashi-Kobe Center Building

January 1992

56

349,529

15,523.33

16,960.51

91.5

Not
disclosed(Note 9)Not
disclosed(Note 9)781.33100.0

OFC-13

Amusement Media Gakuin
Shinkan

OFC-14OFC-15

Not
disclosed(Note 9)327,805
Not
disclosed(Note 9)January 1999

1

Urban Center Shinjuku

March 1989

20

203,719

315,269

5,167.20

5,616.80

92.0

Urban Center Kanda Suda-cho

October 1991

10

141,512

157,380

3,394.35

3,394.35

100.0

OFC-16

Urban Center Kanda
Tsukasamachi

January 1988

7

103,932

120,991

2,885.88

3,254.44

88.7

OFC-17

Takadanobaba Access

January 1994

8

107,817

119,648

3,691.49

3,691.49

100.0

OFC-18

Azabu Amerex BLDG.

June 1988

7

74,012

63,5752,240.03

2,240.03

100.0

OFC-19Hiei-Kudan BLDG.

September 1991

10

70,034

101,8612,298.86

2,298.86

100.0

OFC-20Urban Center Shin-Yokohama

March 1992

17

87,28993,7884,057.89

4,057.89

100.0

OFC-21The Portal Akihabara

May 2002

7

28,51829,252815.38941.6986.6

OFC-22

Urban Center Tachikawa

May 1990

4

62,214

89,671

2,799.92

3,400.47

82.3

OFC-23

Urban Center Hakata

August 2020

8

80,088

157,558

2,639.18

2,639.18

100.0

OFC-24

Urban Center Fujisawa

April 1991

6

80,566

90,7703,298.18

3,396.17

97.1

525,138

232,870

40,497.78(Note 10)41,050.01(Note 10)98.7

270,794332,991

28,615.26

31,088.53

92.0

RTL-01

La Park Kishiwada

August 1994

48
(Note 10)

RTL-02

Suroy Mall Chikushino

June 2007

19

RTL-03

Seiyu Minakuchi

May 1999

1

Not
disclosed(Note 9)Not
disclosed(Note 9)23,814.87

23,814.87

100.0

RTL-05

BAGUS Ikebukuro West

November 1992

1

Not
disclosed(Note 9)Not
disclosed(Note 9)Not
disclosed(Note 9)1,497.45

100.0

RTL-06abeno nini (Retail)

January 2012

5

219,340

150,467

3,481.03

3,481.03

100.0

RSC-01

Urban Park Azabujuban

November 1999

41

59,594

10,497

1,836.82

1,986.76

92.5

RSC-02

Urban Park Daikanyama

Existing: November
1982
Newly built: May
2006

67

200,432

77,2095,657.20

5,977.18

94.6

RSC-05

Urban Park Namba

January 2013

113

46,647-2,497.45

2,584.81

96.6

RSC-06

Urban Park Gokokuji(Note 11)February 1990

-

8,842

-

-

-

-

RSC-07

Urban Park Kashiwa

August 1997

40

39,0468,051

2,884.20

2,954.77

97.6

RSC-08

Urban Park Ryokuchi Koen

March 1989

59

60,016

11,352

5,508.94

5,508.94

100.0

RSC-09Urban Park Koenji(Note 11)

October 1987

-

5,514

-

-

-

-

RSC-10Urban Park Ichigao

July 1998

59

58,35917,8184,197.26

4,322.62

97.1

RSC-11

Urban Park Gyotoku

March 1995

42

39,56624,172

2,976.36

2,976.36

100.0

RSC-12

Shiroi Logiman

May 1995

294

143,832

12,231

21,575.07

21,884.21

98.6

RSC-13

Urban Park Sekime

August 1989

122

85,0979,225

7,383.56

7,693.13

96.0

RSC-14

Urban Park Imazato

December 1991

63

37,497931

4,303.26

4,648.64

92.6- 31 -

Property
no.

Property nameConstruction
completion

Numberof tenants(Note 1)

Rentalrevenue(thousandyen)(Note 2)

Security
andguarantee
deposits(thousandyen)(Note 3)

Leased area(m2)
(Note 4)

Leasablearea (m2)(Note 5)

Occupancy
rate(%)(Note 6)100.0

RSC-15

Urban Park Yoyogi

September 201728

45,9596,061

1,286.50

1,286.50

RSC-16

Urban Park Tokiwadai Koen

February 1994

137

148,263

29,891

13,860.00

14,058.00

98.6

RSC-17

Urban Park Mitsuike Koen

March 1992

137

128,01430,80810,362.00

10,362.00

100.0

RSC-18

Urban Park Ryogoku

October 1997

31

39,726

7,661

2,235.93

2,304.53

97.0

RSC-19Urban Park Mizonokuchi

August 1988

73

64,267

5,662

4,006.64

4,166.38

96.2

RSC-20Urban Park MiyamaedairaJune 2021

47

33,8383,895

1,880.13

1,957.97

96.0

RSC-21

Urban Park Tsurumi

February 1994

1

Not
disclosed(Note 9)Not
disclosed(Note 9)3,145.41

100.0

RSC-22

Urban Park Mitaka

June 2023

4

2,083

1,322

353.57

1,179.94

30.0

RSC-23

Urban Park Kamata Minami I

September 2022

34

7,464

730

919.75971.0094.7

RSC-24

Urban Park Kamata Minami II

September 2023

7

244

5,122

1,608.84

1,962.97

82.0

RSC-25

Urban Park Umejima

October 2023

7

832

831

237.52

1,434.75

16.6

LGC-01

Iwatsuki Logistics

October 20143

200,318

97,01430,190.81

30,190.81

100.0

LGC-02

Yokohama Logistics

October 1994

1

Not
disclosed(Note 9)Not
disclosed(Note 9)18,142.08

100.0

LGC-03

Funabashi Logistics

Building 1:
September 1992
Building 2: August
1997

6

91,16636,081.45

38,086.56

94.7

LGC-04

Baraki Logistics

August 2015

1

Notdisclosed(Note 9)Not
disclosed(Note 9)Not
disclosed(Note 9)12,471.50

100.0

LGC-05Tokorozawa Logistics

April 1999

1

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

100.0

LGC-07

Funabashi Nishiura Logistics II

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

1

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

100.0

LGC-08

Matsubushi Logistics

March 1997

1

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

19,833.47

100.0

Existing: May 2003
Newly built 1:
November 2023
Newly built 2:
November 2023

1

Not
disclosed(Note 9)Not
disclosed(Note 9)Not
disclosed(Note 9)8,902.08

100.0

Not
disclosed(Note 9)Not
disclosed(Note 9)267,529

LGC-09Funabashi Hi-Tech Park FactoryI

HTL-01R&B Hotel Umeda East

October 2000

1

65,21273,4353,940.93

3,940.93

100.0

HTL-02

Smile Hotel Namba

February 2008

1

37,365-

1,711.42

1,711.42

100.0

HTL-03REMBRANDT STYLE Tokyo
Nishikasai

March 1991

1

84,60084,6005,293.88

5,293.88

100.0

HTL-04

BEST WESTERN Yokohama

September 1987

1

80,400

HTL-05The BREAKFAST HOTELFUKUOKA TENJIN

February 2017

1

Notdisclosed(Note 9)HTL-06

GLANSIT AKIHABARA

September 2017

1

Notdisclosed(Note 9)HTL-07REMBRANDT STYLE Tokyo
Nishikasai Grande

February 20171

HTL-08

KOKO HOTEL Osaka Namba

April 20171

70,00280,4004,686.09

4,686.09

100.0

Not
disclosed(Note 9)Not
disclosed(Note 9)2,281.49

100.0

Not
disclosed(Note 9)Not
disclosed(Note 9)1,089.06

100.0

116,670

2,755.19

2,755.19

100.0-

46,244Not
disclosed(Note 9)2,061.38

2,061.38

100.0

Not
disclosed(Note 9)Not
disclosed(Note 9)5,553.84

100.0

HTL-09Abeno nini (Hotel)

January 20121

HTL-10

KOKO HOTEL Ginza 1-chome

October 2014

1

407,986

11,292

7,299.11

7,299.11

100.0

HTL-11

KOKO HOTEL Sapporo Ekimae

October 2015

1

145,690

41,417

5,886.67

5,886.67

100.0

HTL-12

KOKO HOTEL Fukuoka Tenjin

August 2007

1

110,701

9,818

4,404.91

4,404.91

100.0

HTL-13

KOKO HOTEL Hiroshima Ekimae

December 20191

106,591

4,000

5,370.75

5,370.75

100.0- 32 -

Rentalrevenue(thousandyen)(Note 2)

Security
andguarantee
deposits(thousandyen)(Note 3)

Leased area(m2)
(Note 4)

Leasablearea (m2)(Note 5)

Occupancy
rate(%)(Note 6)

Property nameConstruction
completion

Numberof tenants(Note 1)

HTL-14

KOKO HOTEL Kagoshima
Tenmonkan

April 20191

76,832

3,824

4,622.48

4,622.48

100.0

HTL-15

Fino Hotel Sapporo Odori

June 2020

1

72,6274,000

3,854.01

3,854.01

100.0

HTL-16

Best Western Plus Fukuoka
Tenjin-minami

April 2020

1

161,263-

7,322.03

7,322.03

100.0

Property
no.

Total
1,742
7,524,917 5,919,341 488,305.10 501,066.36
97.5(Note 1) “Number of tenants” is the number of tenants (excluding parking) under the lease agreement stated in the lease agreement for each
investment asset as of January 31, 2024. If a single tenant is leasing multiple rental units in an investment asset, the tenant is counted as 1
tenant for the concerned investment asset. If a single tenant is leasing rental units across multiple investment assets, the tenant is counted
as separate tenants and the sum total number of tenants is stated in the total column. Furthermore, in cases where a pass-through-type
master lease agreement under which rent from end-tenants is received in principle (“pass-through-type master lease”) has been concluded
for the concerned investment asset, the total number of end-tenants is stated. In cases where a master lease agreement agreeing to theeffect that the rent under the master lease agreement shall be a fixed rent (“rent-guaranteed type master lease”) has been concluded for theconcerned investment asset, the number of tenants is 1 and the sum total of these is stated.
(Note 2) “Operating revenue from leasing” is rental revenue, common area maintenance revenue, parking revenue and other revenue generated fromreal estate held during the fiscal period under review (including other lease business revenue).
(Note 3) “Security and guarantee deposits” is the sum total amount of tenant security and guarantee deposits required based on the lease agreement(including deposits based on parking, antenna, rooftop and other agreements; the amount after depreciation) for each investment asset asof January 31, 2024 (limited to those occupied as of said date). Furthermore, in cases where a pass-through-type master lease agreement
has been concluded for the concerned investment asset, it is the sum total amount of tenant security and guarantee deposits under leaseagreements concluded with end-tenants.
(Note 4) “Leased area” is the sum total of the leased area stated in the lease agreement for each investment asset as of January 31, 2024. Furthermore,in cases where a master lease agreement has been concluded for the concerned investment asset, it is the sum total of the leased area underlease agreements concluded with end-tenants for properties under a pass-through-type master lease, and it is the leased area under the
master lease agreement for properties under a rent-guaranteed type master lease.
(Note 5) “Leasable area” is the floor area regarded as being available for leasing based on the lease agreement or building drawing, etc. of the building
for each investment asset as of January 31, 2024.
(Note 6) “Occupancy rate” is the ratio of leased area to leasable area for each investment asset as of January 31, 2024, rounded to the first decimal
place. In addition, in the total column, it is the ratio of the sum total of leased area to the sum total of leasable area for each investment
asset, rounded to the first decimal place.
(Note 7) Of the tenants of the property, a single company leases all 36 units of the residential portion, of which 30 units are under a rent-guaranteed
type master lease agreement and 6 units are under a pass-through-type master lease agreement.
(Note 8) In the table, “Number of tenants,” “Security and guarantee deposits,” “Leased area” and “Occupancy rate” are based on lease agreements
valid as of January 31, 2024, even if there is a notice of cancellation or termination of lease agreements with end-tenants or unpaid rent.
(Note 9) Not disclosed, because consent for disclosure has not been obtained from the tenants.
(Note 10) The number of tenants and each area related to the installation of ATM are not included.
(Note 11) Urban Park Koenji was transferred on August 31, 2023.

- 33 -

(d) Summary of Real Estate Appraisal Reports, Etc.
Summary of appraisal reports

Use

OfficeIncome approachAppraisal
Appraisal
Directcapitalization
Appraisalvalue
DCF method
NOI
NOI yield
methodfirm(million(million(%)(Note 1)yen)
Indicated
Indicated(Note 4)
Discount Terminal yen)
(Note 2)value
Cap rate
value
rate
cap rate (Note 3)(million(%)(million
(%)
(%)
yen)
yen)

Propertyno.

Property name

OFC-01

Minami-Azabu Shibuya
Building

Daiwa

3,110

3,200

3.8

3,070

3.4

4.0

139

4.7

OFC-03

Honmachibashi Tower

Daiwa

7,100

7,100

4.0

7,100

3.8

4.2

303

5.0

OFC-04

Nishi-Shinjuku Matsuya
Building

Daiwa

2,740

2,680

4.0

2,760

3.8

4.2

122

6.9

OFC-06

Urban Center Shibuya East

JREI

3,290

3,330

3.3

3,240

3.1

3.4

114

5.6

OFC-08

Urban Center Yokohama
West

JREI

8,420

8,510

3.3

8,330

3.1

3.4

312

4.9

OFC-09Hakata-eki East Place

Daiwa

3,290

3,310

4.4

3,280

4.2

4.6

151

6.6

OFC-10Nihonbashi Hamacho Park
Building

Daiwa

1,510

1,500

4.2

1,510

4.0

4.4

62

4.3

OFC-11

Amusement Media Gakuin
Honkan

Daiwa

2,810

2,880

3.4

2,780

3.2

3.6

102

4.0

OFC-12

Higashi-Kobe Center Building

Tanizawa

7,530

7,500

4.8

7,540

4.9

5.0

405

5.3

OFC-13

Amusement Media Gakuin
Shinkan

JREI

1,230

1,240

3.2

1,210

3.0

3.3

41

4.0

OFC-14

Urban Center Shinjuku

JREI

11,70011,9003.3

11,500

3.0

3.3

399

3.6

OFC-15

Urban Center Kanda Sudacho

Tanizawa

5,440

5,540

3.4

5,400

3.5

3.6

199

3.7

OFC-16

Urban Center Kanda
Tsukasamachi

Tanizawa

4,600

4,720

3.5

4,550

3.6

3.7

172

3.7

OFC-17

Takadanobaba Access

Tanizawa

3,920

4,090

3.6

3,840

3.7

3.8

153

3.8

OFC-18

Azabu Amerex BLDG.

JREI

2,890

2,890

3.4

2,890

3.1

3.4

103

3.7

OFC-19Hiei-Kudan BLDG.

Tanizawa

2,400

2,480

3.4

2,360

3.5

3.6

87

3.6

OFC-20Urban Center Shin-Yokohama

JREI

2,570

2,580

4.2

2,550

3.9

4.3

114

5.0

OFC-21The Portal Akihabara

Tanizawa

1,490

1,540

3.6

1,470

3.7

3.8

57

3.8

OFC-22

Urban Center Tachikawa

Daiwa

2,050

2,050

4.3

2,050

4.1

4.5

94

5.2

OFC-23

Urban Center Hakata

JREI

3,280

3,300

3.7

3,260

3.5

3.8

122

4.3

OFC-24

Urban Center Fujisawa

JREI

2,200

2,220

4.8

2,180

4.6

5.0

115

5.6

83,57084,560-82,870

-

-

3,367

4.5

JREI

5,170

5,190

6.2

5,150

6.0

6.4

381

7.1

Tanizawa

6,580

6,680

5.6

6,530

5.7

5.8

386

5.9

3,320

3,350

6.7

3,290

6.5

7.0

246

7.4

Subtotal

Retail

RTL-01

La Park Kishiwada

RTL-02

Suroy Mall Chikushino

RTL-03

Seiyu Minakuchi

JREI

RTL-05

BAGUS Ikebukuro West

JREI

3,500

3,540

3.4

3,450

3.2

3.5

123

4.1

RTL-06abeno nini (Retail)

JREI

10,50010,7003.7

10,200

3.5

3.9

397

4.2

29,07029,460-28,620

-

-

1,532

5.5

Subtotal- 34 -

Summary of appraisal reports

Use

Residence

Income approachAppraisal
Appraisal
Directcapitalization
Appraisalvalue
DCF method
NOI
NOI yield
methodfirm(million(million(%)(Note 1)yen)
Indicated
Indicated(Note 4)
Discount Terminal yen)
(Note 2)value
Cap rate
value
rate
cap rate (Note 3)(million(%)(million
(%)
(%)
yen)
yen)

Propertyno.

Property name

RSC-01

Urban Park Azabujuban

JREI

2,950

2,980

2.9

2,910

2.7

3.0

90

4.4

RSC-02

Urban Park Daikanyama

JREI

10,10010,300

2.8

9,970

2.6

2.9

302

4.8

RSC-05

Urban Park Namba

Daiwa

1,540

1,560

4.6

1,530

4.4

4.8

74

5.0

RSC-07

Urban Park Kashiwa

Tanizawa

1,210

1,220

4.3

1,200

4.4

4.5

57

4.8

RSC-08

Urban Park Ryokuchi Koen

Tanizawa

1,730

1,740

4.4

1,720

4.5

4.6

87

5.6

RSC-10Urban Park Ichigao

JREI

2,180

2,190

3.7

2,160

3.5

3.8

87

4.8

RSC-11

Urban Park Gyotoku

Tanizawa

1,620

1,660

3.9

1,600

4.0

4.1

68

4.7

RSC-12

Shiroi Logiman

Tanizawa

2,520

2,470

5.0

2,540

5.1

5.2

140

5.7

RSC-13

Urban Park Sekime

Tanizawa

2,460

2,470

4.2

2,450

4.3

4.4

114

5.3

RSC-14

Urban Park Imazato

Tanizawa

1,110

1,120

4.4

1,100

4.5

4.6

54

5.5

RSC-15

Urban Park Yoyogi

JREI

1,990

2,010

3.1

1,970

2.8

3.2

63

3.6

RSC-16

Urban Park Tokiwadai Koen

Tanizawa

4,190

4,220

4.1

4,170

4.2

4.3

193

5.5

RSC-17

Urban Park Mitsuike Koen

Tanizawa

3,690

3,700

4.3

3,680

4.4

4.5

172

5.4

RSC-18

Urban Park Ryogoku

Tanizawa

1,310

1,320

3.7

1,310

3.8

3.9

51

4.6

RSC-19Urban Park Mizonokuchi

Tanizawa

2,100

2,130

4.2

2,090

4.3

4.4

94

4.7

RSC-20Urban Park Miyamaedaira

Daiwa

1,250

1,270

4.0

1,240

3.8

4.2

52

4.9

RSC-21

Urban Park Tsurumi

Tanizawa

1,190

1,190

4.2

1,190

4.6

4.4

53

4.8

RSC-22

Urban Park Mitaka

JREI

1,010

1,020

3.6

995

3.4

3.7

37

5.0

RSC-23

Urban Park Kamata Minami I

JREI

879

894

3.6

863

3.2

3.8

33

5.1

RSC-24

Urban Park Kamata Minami II

JREI

1,770

1,780

3.9

1,760

3.4

4.0

70

5.1

RSC-25

Urban Park Umejima

JREI

1,150

1,150

3.7

1,140

3.4

3.7

43

4.1

47,94948,394-47,588

-

-

1,933

5.0

LGC-01

Iwatsuki Logistics

Daiwa

7,650

7,730

4.2

7,620

4.0

4.4

332

4.8

LGC-02

Yokohama Logistics

Daiwa

4,260

4,280

4.0

4,250

3.7

4.2

201

5.6

LGC-03

Funabashi Logistics

Daiwa

8,770

8,850

4.1

8,740

3.9

4.3

411

5.2

LGC-04

Baraki Logistics

Tanizawa

5,220

5,390

3.5

5,150

3.4

3.7

191

4.1

LGC-05Tokorozawa Logistics

JREI

1,550

1,570

4.6

1,520

4.1

4.8

75

5.8

LGC-07

Funabashi Nishiura Logistics II

Daiwa

907

913

5.4

905

5.2

5.6

58

7.1

LGC-08

Matsubushi Logistics

JREI

3,300

3,330

4.6

3,270

4.1

4.9

158

5.7

LGC-09Funabashi Hi-Tech Park
Factory I

JREI

2,200

2,230

6.3

2,160

6.2

6.6

141

7.1

33,85734,293-33,615

-

-

1,567

5.2

Subtotal

Logistics
facility

Subtotal

Hotel

HTL-01R&B Hotel Umeda East

Daiwa

2,320

2,330

4.5

2,310

4.3

4.7

113

5.5

HTL-02

Smile Hotel Namba

Daiwa

1,490

1,500

4.6

1,490

4.4

4.8

75

4.3

HTL-03REMBRANDT STYLE Tokyo
Nishikasai

JREI

3,460

3,490

4.3

3,430

4.1

4.4

158

4.1

HTL-04

BEST WESTERN Yokohama

JREI

3,160

3,180

4.4

3,130

4.2

4.5

146

4.5

HTL-05The BREAKFAST HOTELFUKUOKA TENJIN

Tanizawa

1,990

2,060

4.3

1,960

4.3

4.5

90

4.6

HTL-06

GLANSIT AKIHABARA

Tanizawa

2,440

2,500

3.9

2,410

3.8

4.1

98

3.9

HTL-07REMBRANDT STYLE Tokyo
Nishikasai Grande

Tanizawa

3,110

3,130

4.0

3,100

3.9

4.2

126

4.0

HTL-08

KOKO HOTEL Osaka Namba

Daiwa

1,560

1,590

4.2

1,550

4.0

4.4

74

3.7

HTL-09abeno nini (Hotel)

JREI

3,850

3,870

4.4

3,820

3.8

4.1

175

4.8

HTL-10

KOKO HOTEL Ginza 1-chome

JREI

19,10019,3003.6

18,900

3.4

3.7

720

4.0

HTL-11

KOKO HOTEL Sapporo Ekimae

JREI

7,080

7,170

4.3

6,990

4.1

4.4

326

4.9

HTL-12

KOKO HOTEL Fukuoka Tenjin

JREI

5,410

5,430

4.2

5,390

3.9

4.2

243

4.9

HTL-13

KOKO HOTEL Hiroshima
Ekimae

JREI

4,320

4,350

4.5

4,280

4.3

4.6

212

5.2

HTL-14

KOKO HOTEL Kagoshima
Tenmonkan

JREI

4,280

4,320

5.0

4,230

4.8

5.1

232

6.1

HTL-15

Fino Hotel Sapporo Odori

JREI

4,270

4,320

4.3

4,220

4.1

4.4

194

4.6

HTL-16

Best Western Plus Fukuoka
Tenjin-minami

JREI

4,410

4,420

5.2

4,400

4.5

5.4

256

6.7

Subtotal

72,25072,960-71,610

-

-

3,237

4.7

Total

266,696

269,667-

264,303--

11,635

4.8- 35 -

(Note 1) Under “Appraisal firm,” “Daiwa,” “JREI,” and “Tanizawa” stand for Daiwa Real Estate Appraisal Co., Ltd., Japan Real Estate Institute, and The
Tanizawa Sogo Appraisal Co., Ltd., respectively.
(Note 2) “Appraisal value” is as of January 31, 2024, as the date of value. However, the date of value for Funabashi Hi-Tech Park Factory I is December
15, 2023.
(Note 3) “NOI” is net operating income calculated under the direct capitalization method stated in the appraisal report, rounded to the nearest million
yen.
(Note 4) “Appraisal NOI yield” is based on net operating income calculated under the direct capitalization method stated in the appraisal report andexpressed as a percentage of acquisition price, rounded to the first decimal place.

(e) Information on Major Real Estate Properties
Of investment assets, there is no property that falls under the category of major real estate properties (buildings/facilities
pertaining to land recognized to be used collectively, of which total rental revenue accounts for 10% or more of the sum
total of total rental revenue of investment assets) as of January 31, 2024. Of investment assets, the following are top fiveproperties in terms of total rental revenue as of January 31, 2024.
Changes in occupancy rate (%) (Note)
January 31,
2022
KOKO HOTEL Ginza 1-chome

January 31,
2023

July 31, 2022

January 31,
2024

July 31, 2023

-

-

-

-

100.0

La Park Kishiwada

98.7

99.5

99.4

98.9

98.7

Higashi-Kobe Center Building

85.3

86.6

89.2

92.9

91.5

Funabashi Logistics

91.6

91.6

94.7

94.7

94.7

Suroy Mall Chikushino

99.7

96.3

96.3

94.5

92.0

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

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

Name of property occupied

Leased area (m2)(Note 1)

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

1 Not disclosed (Note 3)

Iwatsuki Logistics

2 KOKO HOTELS CO., LTD.

KOKO HOTEL Ginza 1-chome
KOKO HOTEL Sapporo Ekimae
KOKO HOTEL Fukuoka Tenjin
KOKO HOTEL Hiroshima Ekimae
KOKO HOTEL Kagoshima Tenmonkan

3 Seiyu Co., Ltd.

Seiyu Minakuchi

4 Not disclosed (Note 3)

Funabashi Logistics

5 Scroll360 Corporation

Matsubushi Logistics

19,833.47

4.0

6 Not disclosed (Note 3)

Yokohama Logistics

Not disclosed (Note 3)

3.6

7 Nagasakiya Co., Ltd.

La Park Kishiwada

15,356.34

3.1

8 FINO Hotels Co., Ltd.

KOKO HOTEL Osaka Namba
Fino Hotel Sapporo OdoriBest Western Plus Fukuoka Tenjin-minami

13,237.42

2.6

9 Rembrandt Inn

REMBRANDT STYLE Tokyo Nishikasai
BEST WESTERN Yokohama
REMBRANDT STYLE Tokyo Nishikasai Grande

12,735.16

2.5

10 Not disclosed (Note 3)

Baraki Logistics

Not disclosed (Note 3)

2.5

194,703.03

38.9

Total of the top 10 tenants

Not disclosed (Note 3)

5.9

27,583.92

5.5

23,814.87

4.8

Not disclosed (Note 3)

4.4(Note 1) “Leased area” is the sum total of the leased area stated in the lease agreement for each investment asset as of January 31, 2024.
(Note 2) “As a percentage of total leasable area” is the area leased to the tenant expressed as a percentage of the sum total of leasable area of all
investment assets, rounded to the first decimal place.
(Note 3) Not disclosed, because consent for disclosure has not been obtained from the end-tenants, etc.

- 36 -

(g) Capital Expenditures
a. Schedule of Capital Expenditures for the 17th fiscal period
The following are the principal capital expenditures arising from renovation construction works, etc. currently planned
for the assets held by SAR as of January 31, 2024. Please note that the expected construction amounts include portions
that are expensed as a separate account item of accounting costs.
Estimated construction costs(thousand yen)
Name of real estate, etc.
(Location)

PurposeScheduledperiodTotalamountAmount ofpayment
duringperiodTotalamountalreadypaid

Higashi-Kobe Center Building(Kobe City, Hyogo)

Elevator renewal work

From: Feb. 2024
To: Mar. 2024

99,000--Hakata-eki East Place(Fukuoka City, Fukuoka)

Common area renewal
work

From: Feb. 2024
To: Jul. 2024

50,000--Higashi-Kobe Center Building(Kobe City, Hyogo)

Elevator renewal work

From: Feb. 2024
To: Jun. 2024

49,500--Urban Center Shin-Yokohama(Yokohama City, Kanagawa)Exterior wall renovation
work

From: Feb. 2024
To: Jul. 2024

40,000--Higashi-Kobe Center Building(Kobe City, Hyogo)

Air-conditioning
From: Feb. 2024
equipment upgrading work To: Apr. 2024

39,650--Urban Center Yokohama West
(Yokohama City, Kanagawa)Switching to LED lighting in From: Feb. 2024
privately owned areas
To: Jun. 2024

38,800--

Seiyu Minakuchi(Koka City, Shiga)

Water heater/cooler
renewal work

From: Feb. 2024
To: May 2024

36,500--

Nishi-Shinjuku Matsuya Building Air-conditioning
From: Feb. 2024
(Shibuya Ward, Tokyo)
equipment upgrading work To: May 2024

20,000--- 37 -

b. Capital Expenditures during the 16th fiscal period
The following summarizes the primary construction works that constitute capital expenditures implemented for theassets held by SAR as of January 31, 2024, during the 16th fiscal period. Capital expenditures for the 16th fiscal periodamounted to 1,107,190 thousand yen and, when combined with the 319,629 thousand yen in repair expenses charged
to the same period, it totals 1,426,820 thousand yen in construction works implemented.
Name of real estate, etc.
(Location)

Purpose

PeriodConstruction costs(thousand yen)

Funabashi Hi-Tech Park Factory I(Funabashi City, Chiba)

Building A extension work

From: May 2023
To: Dec. 2023

228,714

Higashi-Kobe Center Building(Kobe City, Hyogo)

Elevator renewal work

From: Apr. 2023
To: Sep. 2023

98,440

Funabashi Hi-Tech Park Factory I(Funabashi City, Chiba)

Building B extension work

From: Aug. 2023
To: Dec. 2023

47,169Urban Center Shinjuku(Shinjuku Ward, Tokyo)

Elevator renewal work

From: Aug. 2023
To: Sep. 2023

35,641

Matsubushi Logistics(Kitakatsushika-gun, Saitama)

Air-conditioning equipment upgrading
work (phase 2)

From: Aug. 2023
To: Sep. 2023

26,516

Suroy Mall Chikushino(Chikushino City, Fukuoka)

Building P renovation work

From: Sep. 2023
To: Nov. 2023

31,024

Yokohama Logistics(Yokohama City, Kanagawa)Air-conditioning installation work (1F)

From: Oct. 2023
To: Dec. 2023

25,487

Funabashi Logistics(Funabashi City, Chiba)

Building 1 refrigeration equipment
upgrading work (5F)

From: Jan. 2024
To: Jan. 2024

23,671

La Park Kishiwada(Kishiwada City, Osaka)

Station-side exterior wall renovation
work (phase 2)

From: Oct. 2023
To: Jan. 2024

26,633

La Park Kishiwada(Kishiwada City, Osaka)

Station-side exterior wall renovation
work (phase 1)

From: Jul. 2023
To: Sep. 2023

21,859Urban Center Tachikawa(Tachikawa City, Tokyo)

Elevator renewal work

From: Aug. 2023
To: Sep. 2023

20,500-521,530

Other

Total

- 38 -

1,107,190

(h) Income Statement by Asset Type (Use)

Office total

Retail total

Residence
total(thousand yen) 2,397,454

1,241,310

1,290,776

926,298

1,669,076

7,524,917

2,205,321

1,082,343

1,237,451

883,667

1,669,076

7,077,860

192,132

158,967

53,32542,631-

447,056

737,628

487,792

384,398

209,813

163,271

1,982,903

Management fee

183,350

143,12184,574

31,253

12,489454,790

Utilities expenses

174,637

138,237

17,271

42,393

3

372,542

Taxes and dues

189,597

87,881

85,262

76,67750,753490,171

Repair expenses

96,76547,58094,30449,032

31,947

319,629

Trust fee

8,263

3,600

7,622

3,000

6,183

28,668Insurance premium

4,835

2,615

3,589

1,898

2,374

15,314

Other

80,17864,756

91,773

5,557

59,519301,786③ NOI (①-②)(thousand yen) 1,659,826

753,518

906,378

716,485

1,505,805

5,542,013④ Depreciation(thousand yen)

296,217

101,441

151,785

151,625

262,532

963,602⑤ Operating income (loss) from(thousand yen) 1,363,608
real estate leasing (③-④)

652,076

754,592

564,859

1,243,272

4,578,410⑥ Capital expenditures(thousand yen)

414,498

150,429

72,799430,965

38,497

1,107,190⑦ NCF (③-⑥)(thousand yen) 1,245,327

603,088833,579

285,519

1,467,307

4,434,822

Acquisition price(million yen)

74,94727,75438,94329,95069,544

241,138

Book value at end of period(million yen)

75,76027,732

39,64229,09869,415

241,648

Estimated value at end of period(million yen)

83,57029,07047,94933,857

72,250266,696

End of January 2022

92.8%

99.4%

95.1%

97.8%

100.0%

96.7%

End of July 2022

93.7%

98.6%

97.5%

97.8%

100.0%

97.2%

End of January 2023

94.3%

98.6%

97.5%

98.6%

100.0%

97.6%

End of July 2023

96.9%

97.9%

97.1%

98.6%

100.0%

97.9%

End of January 2024

96.5%

97.0%

95.5%

98.6%

100.0%

97.5%① Total operating revenue
from real estate leasing
Rental revenue
Other lease business revenue② Total operating expenses
from real estate leasing(thousand yen)

Logistics
Hotel total
facility total

Portfolio
total

Occupancy rate at end of period- 39 -