As of June 20, 2019

Hopeful future
for Japan
Nippon Healthcare
Investment Corporation
Presentation Material for
The 10th Fiscal Period Ended April 2019
Securities code ： 3308

Contents
Disclaimer

Section 3

Topics for 10th Fiscal Period

External Growth3

Section 1
Operating Results for the 10th Fiscal Period
Operating Results for 10th Fiscal Period

5Forecast of Operating Results for 11th Fiscal Period
and 12th Fiscal Period
Distribution per Unit

6
7

Section 2
Portfolio Analysis

Property Acquired in 10th Fiscal Period(Ending
April 2019)19

Change in Asset Size

20

Introduction of Operators

21

Portfolio Map（as of June 20, 2019）22

Pipeline Development

23(Reference) About the Acquisition of ORIX Living
Corporation by Daiwa Securities Group

24

Section 4

Portfolio List (as of June 20, 2019)10

Status of Portfolio：Change in Occupancy Rates

11

Portfolio Occupancy Rate Improvement Cases

12

Status of Portfolio (as of April 30, 2019)13

Portfolio Resident Attributes (as of April 30, 2019)14

Status of Portfolio: Fee Systems of Facilities

15

Remaining Lease Contract Period of Each Property

16

Properties Renewed in the 10th Fiscal Period

17

Financial Status
Status of Interest-Bearing Liabilities(as of April 30, 2019)
Overview of the Unitholder Benefits Program

26
27

Section 5
Initiatives for ESG
Efforts on ESG | Sustainable Development Goals (SDGs)

30

Initiatives for ESG

31

Initiatives for ESG (Social/Governance)

32

Appendix

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

1Disclaimer

This material is solely for the purpose of providing information and is not intended for the purpose of offering or soliciting
investment, or as a recommendation to purchase or sell any specific product. Please refer any inquiries on potential
purchases of the investment units of Nippon Healthcare Investment Corporation to a securities dealer.
This document is not intended to provide information to meet the requirements of Japan’s new Financial Instruments andExchange Act or Act on Investment Trusts and Investment Corporations, or any associated cabinet orders, cabinet officeordinances, rules, or any rules governing companies listed on the Tokyo Stock Exchange, or any other applicable rules,
nor is it a disclosure document or statement of financial performance prepared in accordance with the provisions of anyof the foregoing.
This document contains forward-looking statements. However, these forward-looking statements are based on certain
assumptions and judgments made using currently available information, and there are a number of known and unknown
risks and uncertainties. These forward-looking statements are not a guarantee of future performance or management
results of Nippon Healthcare Investment Corporation, and actual results may materially differ from any explicit or implicit
forecasts contained herein.
Although the information contained in this document is the best available at the time of publication, no assurances can begiven regarding the accuracy and certainty of this information. The content of this document may be modified orwithdrawn without prior notice.
Reproduction or use of the contents included in this document without prior approval is prohibited.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

22

Topics for 10th Fiscal Period (Ended April 2019)█<Management status>

Average occupancy rate for the entire portfolio at the end of the 10th Fiscal Period was thehighest ever at 93.2% (up 2.6 percentage points from the 9th Fiscal Period)
Operators’ rent-paying capacity was 1.6, the same as the 9th Fiscal Period“More than 1.5x, but 2.0x or less” increased to 48.5 from 34.2% at the end of the 9th Fiscal
PeriodExterior repairs and facility upgrades were conducted at some facilities with the purpose ofpromoting occupancy and maintaining stability (Sompo Care LAVIERE Sagamihara Chuo:
14 million yen, Charm Sweet Ryokuchi Koen: 3 million yen, etc. )█ <External growth>Acquired first portfolio property located in Tokyo (December 20, 2018)“Irise Komae Bettei” (Acquisition price: Approx. 390 million yen, 30% quasi-co-ownership interest)█ <Financial status>

LTV was 46.6%, ratio of fixed rates was 100.0% and average remaining loan period was
2.0 years

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

3Section 1 Operating Results

for the 10th Fiscal Period

Operating Results for 10th Fiscal Period
Actual results for the 10th Fiscal Period
9th FP(ended Oct. 2018)(results)(unit: million yen)
10月0th FP(ended Apr. 2019)(results)



23
705
424
96
202
281
4
28
21
257
256

+1
+7
-1
+5
+2
+9
+4
+0
-0
+ 13
+ 13

74,632

74,632

-

4,130

4,307

+ 177

3,260

3,437

+ 177

870

870

-

Depreciation per unit (yen)

2,674

2,714

Ratio of distribution in excess of earnings to
depreciation per unit

32.5%

32.0%

Number of investment units issued and outstandingat the end of the fiscal period (units)
Distribution per unit (yen)(including distribution in excess of earnings)
Distribution per unit (excluding distribution inexcess of earnings)
Distribution per unit in excess of earnings

Item

Difference

22
697
425
90
199
271
0
28
21
244
243

Number of properties owned at end of the fiscal period
Operating revenue
Operating expenses
Property-related expense (excluding depreciation)
Depreciation
Operating income
Non-operating revenue
Non-operating expense
Interest expense
Ordinary income
Net income

FactorIncrease

Increase

Decrease

Revenue (rents and common areafees) from 1 property acquired
during the fiscal period+

7million yen

Repair Cost
 Depreciation++

7million yen

Asset Custody and Admin. Service Fees Asset Management Fees-

6million yen+

4million yen

2million yen

4million yen(Reference)

Comparison of forecast and actual results for 10th Fiscal Period(unit: million yen)

Number of properties owned at end of the fiscal period
Operating revenue
Operating expenses
Net income
Distribution per unit (yen)(including distribution in excess of earnings)
Distribution per unit
(excluding distribution in excess of earnings)
Distribution per unit (in excess of earnings)

10th FP (ended Apr. 2019)(forecast)(Disclosed as of
19 Dec. 2018)

10th FP(ended Apr. 2019)(results)

23
705
424
250

23
705
424
256

-0
-0
+5

4,230

4,307

+ 77

3,360

3,437

+ 77

870

870

-

Difference

FactorIncrease

Item
Non-operating expense (Other Non-operating expense)This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

5Forecast of Operating Results for 11th Fiscal Period and 12th Fiscal Period
Factor

Forecast of the 11th fiscal period(unit: million yen)
Increase

11h FP(ending Oct. 2019)(forecast)Difference fromthe 10th FP

Revenue (rents and common area fees)from 1 properties acquired during the fiscal
periodIncreaseTax and public dues (general andadministrative expense) Management Fees

Decrease





23

-

Operating revenue

707

+2

Operating expenses

427

+3

Property-related expenses (excluding depreciation)

95-0

Depreciation

203

+1

Operating income

280

-0

Non-operating revenue--4

Non-operating expense

29+0Interest expense

Number of properties ow ned at end of the fiscal period

Item+

2million yen++

2million yen-

2million yen

Repair Cost
11h FP(ending Oct. 2019)(forecast)

Number of investment units issued and outstandingat the end of the fiscal period (units)
Distribution per unit (yen)(including distribution in excess of earnings)
Distribution per unit (excluding distribution in excess ofearnings)

Difference fromthe 10th FP

74,632

-

4,230

-77

3,350

-87

880

+10

22

+0

Ordinary income

251

-6

(Reference)

Net income

250

-6

Depreciation per unit (yen)2,731

Ratio of distribution in excess of earnings to depreciation
per unit

32.2%

Forecast of the 12th fiscal period(unit: million yen)
12th FP(ending Apr. 2020)(forecast)Difference fromthe 11th FP

23-

Operating revenue

707

+0

Operating expenses

428

+0

Property-related expenses (excluding depreciation)

97+2

Depreciation

203

-0

Operating income

279

-0

-

-

Number of properties ow ned at end of the fiscal period

Non-operating revenue
Non-operating expense
Interest expense

Ordinary income
Net income

28-0Distribution per unit in excess of earnings

FactorItem

IncreaseRepair Cost+

2million yen

Decrease

Other Fees-

1million yen

12th FP(ending Apr. 2020)(forecast)
Number of investment units issued and outstandingat the end of the fiscal period (units)
Distribution per unit (yen)(including distribution in excess of earnings)
Distribution per unit (excluding distribution in excess ofearnings)

Distribution per unit in excess of earnings

Difference fromthe 11th FP

74,632

-

4,230

-

3,350

-

880

-

21

-0

(Reference)

251

+0

Depreciation per unit (yen)

2,730

+0

Ratio of distribution in excess of earnings to depreciation
per unit

32.2%

250

1million yen

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

6

Distribution per Unit
Distribution per Unit
（YEN）

5,000

4,067
4,000

3,471
3,000

810

768

4,295 4,106
800

4,143 4,124

4,163 4,130

800

800

850

860

870

3,306

3,343

3,274

3,303

3,260

4,307 4,230

4,230

870

880

880

3,437
3,437

3,350

3,350

Distribution
in excessofEarnings
per unit

2,000
3,299
2,661

1,000

Distribution
per unit(excluding
distribution inexcess of
earnings)

3,4950
End of the End of the End of the End of the End of the End of the End of the Endof the Endof the Forecast of Forecast of
2nd FP
3rd FP
4th FP
5th FP
6th FP
7th FP
8th FP
9th FP
10th FPthethe(ended(ended(ended(ended(ended(ended(ending(ending(ending
11th FP
12th FP
April 2015) October April 2016) October April 2017) October April 2018) October April 2019) (ending(ending
2015)
2016)
2017)
2018)
October April 2020)2019)
This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

7

Memorandum

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

8Section 2

Portfolio Analysis

Portfolio List (as of June 20, 2019)
Acquisition price (Note 2)No.
Acquisition period(Note 1)

Property nameFacility typeOperator

LocationPrice (million
yen)

Share ofportfolio (%)

Appraisal Number ofOccupancy rates (%)
value
rooms
(million yen) (rooms)
9th FP
10th FP(Note 3)(Note 4) （ Note5） （ Note6） Difference11

1st Fiscal Period

Charm Sweet Ryokuchi Koen

Fee-based homes for the elderly with nursing care

Charm Care Corporation

Toyonaka City, Osaka

1,950

9.9

3,030

128

98.4

98.4

0.0

22

2nd Fiscal Period

Super Court JR Nara-Ekimae

Residential-type fee-based homes for the elderly

Super Court

Nara City, Nara

1,569

8.0

1,750

155

92.9

92.9

0.0

33

1st Fiscal Period

Sompo Care LAVIERE Hiroshima Hikarigaoka

Fee-based homes for the elderly with nursing care

Hiroshima City, Hiroshima

960

4.9

1,220

80

93.7

93.7

0.0

44

1st Fiscal Period

Sompo Care LAVIERE Sagamihara Chuo

Fee-based homes for the elderly with nursing care

Sagamihara City, Kanagawa

1,170

5.9

1,790

80

78.7

96.2

17.5

55

2nd Fiscal Period

Sompo Care LAVIERE Kinugasayama Koen

Fee-based homes for the elderly with nursing care

Yokosuka City, Kanagawa

1,839

9.3

2,090

104

89.4

86.5

-2.9

66
77

5th Fiscal Period

Sompo no ie NishitanabeekimaeFee-based homes for the elderly with nursing care

Osaka City, Osaka

710

3.6

739

42

97.6

100.0

2.4

1st Fiscal Period

Sawayaka Kaikyokan

Fee-based homes for the elderly with nursing care

Kitakyushu City, Fukuoka

630

3.2

898

65

95.3

100.0

4.7

88

1st Fiscal Period

Sawayaka Meisuikan

Fee-based homes for the elderly with nursing care

Kitakyushu City, Fukuoka

590

3.0

812

87

100.0

96.5

-3.5

99

1st Fiscal Period

Sawayaka Heart Life Nishikyogoku

Residential-type fee-based homes for the elderly

Kyoto City, Kyoto

750

3.8

1,130

84

94.0

98.8

4.8

10
10

2nd Fiscal Period

Sawayaka Hinodekan

Fee-based homes for the elderly with nursing care

Niigata City, Niigata

773

3.9

921

50

96.0

96.0

0.0

11
11

2nd Fiscal Period

Sawayaka Riverside Kurinoki

Residential-type fee-based homes for the elderly

Niigata City, Niigata

266

1.3

323

33

94.8

92.3

-2.5

12
12

2nd Fiscal Period

Sawayaka Obatake Sanbankan

Residential-type fee-based homes for the elderly

Kitakyushu City, Fukuoka

289

1.5

355

50

94.0

94.0

0.0

Sompo Care

Sawayaka Club13
13

1st Fiscal Period

Nichii Care Center Fukushima Omori

Fee-based homes for the elderly with nursing care

Nichii Gakkan

Fukushima City, Fukushima

265

1.3

339

52

100.0

100.0

0.0

14
14

2nd Fiscal Period

La’nassica Arakogawa

Fee-based homes for the elderly with nursing care

Cedar

Nagoya City, Aichi

1,279

6.5

1,460

100

98.0

96.0

-2.0

15
15

1st Fiscal Period

Verger Hirakata

Residential-type fee-based homes for the elderly

Nihon Kaigo

Hirakata City, Osaka

950

4.8

1,560

104

76.6

78.5

1.9

16
16

3rd Fiscal Period

Minna-no-ie Omiya Tsutsujigaoka Park

Fee-based homes for the elderly with nursing care

Saitama City, Saitama

740

3.8

776

33

84.8

84.8

0.0

17
17

3rd Fiscal Period

Minna-no-ie Chuo-ku En’nami

Fee-based homes for the elderly with nursing care

Saitama City, Saitama

838

4.3

861

51

80.3

94.1

13.8

Wisnet18
18

3rd Fiscal Period

Silver Heights Hitsujigaoka No.3

Fee-based homes for the elderly with nursing care

Sapporo City, Hokkaido

1,200

6.1

1,340

109

92.7

91.8

-0.9

19
19

4th Fiscal Period

Alpha Living Okayama Nishigawa Ryokudokoen

Residential-type fee-based homes for the elderly

Okayama City, Okayama

730

3.7

788

53

76.3

78.1

1.8

20
20

4th Fiscal Period

Alpha Living Okayama Korakuen

Residential-type fee-based homes for the elderly

Okayama City, Okayama

610

3.1

659

45

89.5

93.7

4.2

Silver Heights Sapporo

Anabuki Medical Care21
21

4th Fiscal Period

Alpha Living Takamatsu Ekimae

Residential-type fee-based homes for the elderly

Takamatsu City, Kagawa

605

3.1

641

43

81.8

86.3

4.5

22
22

4th Fiscal Period

Alpha Living Takamatsu Hyakkenmachi

Elderly housing with supportive services

Takamatsu City, Kagawa

605

3.1

627

50

83.3

85.1

1.8

23
23

10th Fiscal Period

Irise Komae Bettei

0.0

Fee-based homes for the elderly with nursing care

11 operators(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)23 properties

Total

Hitowa care service

Komae City, Tokyo

394

2.0

399

59

98.3

98.3

19,712100.0

24,508

1,657

-

-

Red numbers refer to Three major metropolitan areas and blue numbers to Core cities. The background colors for Property name and Facility type columns indicate types offacilities; orange for fee-based homes for the elderly with nursing care, blue for residential-type fee-based homes for the elderly and yellow-green for elderly housing withsupportive services.
“Acquisition price” is excluding consumption tax, local consumption tax and the various expenses required for the acquisition. “Share of portfolio” is the respective acquisition
price expressed as a percentage of the total of the acquisition prices, rounded to one decimal place. Therefore the total of “Share of portfolio” may be different from the figure
indicated in “Total.”
Appraisal values is as of April 30, 2019. Appraisal values for “Irise Komae Bettei” is calculated for the 30% quasi-co-ownership interest.
“Number of rooms” is the figure indicated in the written explanation of important matters pertaining to the fee-based home for the elderly provided by the operator. "Irise Komae
Bettei" lists the number of rooms in the whole facility.
“Occupancy rate” is obtained by dividing the number of residents indicated in the written explanation of important matter received in November 2018 from operators by theresident capacity, rounded down to one decimal place.
“Occupancy rate” is obtained by dividing the number of residents indicated in the written explanation of important matters received in May 2019 from operators by the resident
capacity, rounded down to one decimal place.

<Diversification of facilities>

Residential-type
29.3%
Fee-based homes
for the elderly 96.9%

Elderly housing withsupportive services
3.1%

With nursing care
67.7%

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

10Status of Portfolio：Change in Occupancy Rates
Change in occupancy rates (overall)Nuber of facilities (left axis)

Occupancy rate (right axis)

93.2％(persons)

100

1,800

90

1,600

80

1,400

70

1,200

60

1,000

50
800

40

600

30

400

10

200

0

0
Nov. 2014
Dec. 2014
Jan. 2015
Feb. 2015
Mar. 2015
Apr. 2015
May. 2015
Jun. 2015
Jul. 2015
Aug. 2015
Sep. 2015
Oct. 2015
Nov. 2015
Dec. 2015
Jan. 2016
Feb. 2016
Mar. 2016
Apr. 2016
May. 2016
Jun. 2016
Jul. 2016
Aug. 2016
Sep. 2016
Oct. 2016
Nov. 2016
Dec. 2016
Jan. 2017
Feb. 2017
Mar. 2017
Apr. 2017
May. 2017
Jun. 2017
Jul. 2017
Aug. 2017
Sep. 2017
Oct. 2017
Nov. 2017
Dec. 2017
Jan. 2018
Feb. 2018
Mar. 2018
Apr. 2018
May. 2018
Jun. 2018
Jul. 2018
Aug. 2018
Sep. 2018
Oct. 2018
Nov. 2018
Dec. 2018
Jan. 2019Feb. 2019
Mar. 2019
Apr. 201920

Stable occupancy rates
 The overall occupancy rate UP 2.6% to 93.2% at the end of April 2019 from 90.6% at the end of October 2018.
 The period average UP 2.0% to 92.2% for the 10th Fiscal Period from 90.2% for the 9th Fiscal Period.
 With the significant improvement in the occupancy rates of some facilities which had rather low occupancy rates, theoccupancy rates remained at the highest level since listing for both period-end and period-average.
(Note) Occupancy rates are obtained by dividing the number of residents based on interviews with all facilities, by resident capacity.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

11

Portfolio Occupancy Rate Improvement Cases
Minna-no-ie Chuo-ku En’nami (Acquisition price: 838 million yen)

Sompo Care LAVIERE Sagamihara Chuo (Acquisition price: 1,170 million yen)
Operator

Sompo Care Next Inc.

Operator

Wisnet Co., Ltd.

Location

3-6-3 Chuo, Chuo-ku,
Sagamihara-shi, Kanagawa

Location

5-5-17 En'nami, Chuo-ku,
Saitama-shi, Saitama

Number ofrooms (rooms)

80

Number ofrooms (rooms)

51

OpenedAugust 1, 2008

OpenedApril 1, 2014

Change in Occupancy Rates for Sompo Care LAVIERE Sagamihara Chuo

100%
90%
80%

March 2014,
started operations

December 2015,
Parent company ofOperator changed
ChangeChange in Occupancy Rates for Minna-no-ie Chuo-ku En’nami

80%

96.2%

70%

40%

60%

20%

50%

0%





In December 2015, the parent company of the operator switched from Watami to Sompo
Japan Nipponkoa Holdings, Inc., currently known as Sompo Holdings, Inc. The facility
name was rebranded in April 2016 to SOMPO CARE LAVIERE. In July 2016, theoperating structure changed, a new fee plan was established that abolished the onetime entrance fee and the operating area expanded to hospitals. In addition, given thesuggestion from the Asset Management Company, beautification was conducted within
the facility including the entrance, common-use halls, and parking lots.
From September 2016, the occupancy rate gradually started to recover, and it reached96.2% as of March 2019.

94.1%

June 2015, started
operations

15/4

15/10

16/4

16/10

17/4

17/10

18/4

18/10

History of Occupancy Rate Improvement

History of Occupancy Rate Improvement
Upon acquisition in March 2014, occupancy rate declined due to new opening ofcompeting facilities.

September
2017, reopened

Temporarilyclosed60%

14/4 14/10 15/4 15/10 16/4 16/10 17/4 17/10 18/4 18/10



May 2016, Parent
company ofOperator changed

100%

May 2017,
Beautification ofentrance, etc.



In May 2016, Sohgo Security Service made the operator, Wisnet, a subsidiary. In
December 2016, with the occupancy rate struggling to grow within the entire area, thefacility was temporarily closed due to the difficulty in hiring nursing care staff.



In September 2017, two out of three floors resumed operations. In addition to integrating
staff and occupants from facilities that the operator manages, the operational structure
was enhanced. Monitoring continues through the Asset Management Company



Through the introduction-by-staff system, nursing care workers were retained, andoperation on all floors commenced in June 2018. Since then, the occupancy rate has
recovered, and reached 94.1% as of March 2019.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

12

Status of Portfolio (as of Ａｐｒｉｌ 30, 2019)
Rent-Paying Capacity

1.2x or less
22.5%

More than 1.2x,
but 1.5x or less
6.4%

More than
2.0x
22.6%

Rent-Paying
Capacity (Note 1)
Average 1.6x
(On appraisal basis:
Average 1.7x)More than 1.5x,
but 2.0x or less
48.5%

(Note 1) “Rent-paying capacity” refers to themultiple obtained by dividing therespective acquired asset’s mostrecent EBITDAR by rent.
* EBITDAR＝asset’s operating
income+ depreciation + rent

Proportion of Nursing Care Fee

More than 60%,
but 70% or less
8.8%

Proportion of
Nursing
Care Fee(Note 2)
Average 50.7%

Proportion of Entrance Fee
Amortization Income

More than
5%, but
15% or less
38.9%
50% or less
44.7%

More than 50%,
but 60% or less
46.5%

(Note 2) “Proportion of nursing care fee”
refers to the proportion of theacquired asset’s net sales that isaccounted for by nursing care fee(including residents’ co-payment
portion).

Proportion of
One-time
Entrance Fee
Amortization
Income(Note 3)
Average 3.4%

5% or less
61.1%

(Note 3) “Proportion of one-time entrance fee
amortization income” refers to the
proportion of revenue accruing fromfar each facility one-time entrance
fee amortization in total revenue.

(*) Data are based on information on business income and expenditures from April 2018 to March 2019 disclosed by the respective operator. However, the data of the following
facilities is based on the financial results of each facilities; Nichii Care Center Fukushima Omori is from January 2018 to December 2018, and the Silver Heights Hitsujigaoka
No.3 is from March 2018 to February 2019.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

13

Portfolio Resident Attributes (as of April 30, 2019)
Gender(Note1)

Age Group(Note2)

Independent Other
Requiring
0.3%
support level 1 0.7%

Under 65
65 years years
or over, 1.5%
but under
75 years

Male
28.5%

6.2%

Requiring support
level 2

7.8%

5.1%

75 yearsor over,but under
85 years

Requiring nursing
care level 1

24.0%
Female71.5%

Level of Requiring Nursing Care or Support(Note 3)

23.8%

85 yearsor over

66.7%

Requiring nursing
care level 5
8.4%
Requiring
nursingcare level 4

Averagerequiredlevel ofnursing care
2.3

16.4%

Requiring
nursingcare level 3

Requiring nursing
care level 2

17.0%

22.2%
(Note 1) The graph indicates the ratio of thenumber of residents per gender
expressed as a percentage of the total
number of residents.

(Note 2) The graph indicates the ratio of thenumber of residents per age groupexpressed as a percentage of the total
number of residents (except for residents
at Sompo Care LAVIERE Sagamihara
Chuo and Sompo Care LAVIERE
Kinugasayama Koen as there is no suchinformation stated in the written
explanation of important matters).

(Note3) The graph indicates the ratio of the number ofresidents per level of requiring nursing care or
support expressed as a percentage of the total
number of residents.
“Average level of nursing care” indicates thefigure obtained by multiplying the respective
number of residents categorized as
independent, requiring support level 1,
requiring support level 2, requiring nursing
care levels 1-5 and other by 0, 0.375, 1, 1-5
and 1 respectively, and dividing the sum total
by the number of residents.

(*) Data are based on figures stated in the written explanation of important matters (May 2019) provided by each operator. All percentage figures are rounded to one decimal
place. “Average required level of nursing care” is rounded down to the first decimal place.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

14

Status of Portfolio: Fee Systems of Facilities(Note1)Name of facility
Charm Sweet Ryokuchi Koen
Super Court JR Nara-EkimaeMonthly rent (yen)2,400 〜4,800

165,879 〜211,879
245,879 〜251,879(Note2)

Sompo Care LAVIERE Hiroshima Hikarigaoka

155,080
4,500 〜6,800

234,800 〜254,800
3,800 〜7,800

199,071
262,401 〜329,071

Sawayaka Kaikyokan
Sawayaka Meisuikan

186,690261,690 〜300,020

Sompo Care LAVIERE Sagamihara Chuo
Sompo Care LAVIERE Kinugasayama Koen

(Note1)

One-time entrance fee(thousand yen)

(Note2)

Sawayaka Heart Life Nishikyogoku

As of acquiring the written
explanation of important matters
May 1, 2019
April 1, 2019
April 1, 2019
April 1, 2019
April 1, 2019

142,600 〜145,600

April 1, 2019

106,440 〜141,440

April 1, 2019

161,600 〜181,600

April 1, 2019

Sawayaka Hinodekan

196,820

April 1, 2019

Sawayaka Riverside Kurinoki

157,742

April 1, 2019

Sawayaka Obatake Sanbankan

122,300

April 1, 2019

Nichii Care Center Fukushima Omori

162,743

April 1, 2019Laʼnassica Arakogawa

1,260 〜2,100

152,340 〜154,340
189,340

April 1, 2019

Verger Hirakata

135,000

April 17, 2019

Minna-no-ie Omiya Tsutsujigaoka Park

166,837

April 1, 2019

Minna-no-ie Chuo-ku Enʼnami

162,400

April 1, 2019

2,000 〜4,000

165,780 〜173,340

April 1, 2019

Silver Heights Hitsujigaoka No.3
Alpha Living Okayama Nishigawa Ryokudokoen

1,380

137,000 〜159,000

April 1, 2019

Alpha Living Okayama Korakuen

1,620 〜2,850

148,000 〜189,000

April 1, 2019

Alpha Living Takamatsu Ekimae

1,200

157,000 〜180,000

April 1, 2019

Alpha Living Takamatsu Hyakkenmachi

1,200

160,000 〜205,000

April 1, 2019

195,500

April 1, 2019

227,000 〜248,000

February 1, 2019

Sompo no ie Nishitanabeekimae
Irise Komae Bettei(Note1)“One-time entrance fee” indicates one-time entrance fee stated in the written explanation of important matters or in the price list acquired from the operators. “Monthly fee” indicates themonthly fee for a standard single room stated in the written explanation of important matters or in the price list acquired from the operators (excluding the co-payment amount of nursing
care insurance services). One-time entrance fee and monthly rent for facilities with one-time entrance fee are indicated on a one-time entrance fee basis (one-time entrance fee and monthly
fee are indicated separately) whereas those for facilities without one-time entrance fee are indicated on a monthly payment basis.

(Note2)

Sawayaka Meisuikan (Former monthly fee 103,440 - 138,440 yen), Super Court JR Nara-Ekimae (Former monthly fee 150,080 yen) revised fees in April 2019.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

15

Remaining Lease Contract Period of Each Property
Contract expiry date

Remaining lease
contract period

Irise Komae Bettei

January 31, 2047

27.8Years

Minna-no-ie Chuo-ku Enʼnami

March 31, 2044

24.9Years

Minna-no-ie Omiya Tsutsujigaoka Park

February 28, 2037

17.8Years

Operator
Hitowa care service
WisnetProperty nameSuper Court

Super Court JR Nara-Ekimae

July 14, 2039

20.2Years

Charm Care Corporation

Charm Sweet Ryokuchi Koen

August 28, 2038

19.3Years

Silver Heights Sapporo

Silver Heights Hitsujigaoka No.3

November 30, 2035

16.6Years

June 30, 2035

16.2Years

September 11, 2034

15.4Years

March 28, 2034

14.9Years

March 31, 2027

7.9YearsNovember 30, 2034

15.6Years

March 27, 2034

14.9Years

Nichii Care Center Fukushima Omori

March 31, 2034

14.9Years

Verger Hirakata

March 28, 2034

14.9Years

Laʼnassica Arakogawa

March 31, 2028

8.9Years(Note3)Alpha Living Okayama Nishigawa Ryokudokoen
Anabuki Medical Care

Alpha Living Okayama Korakuen
Alpha Living Takamatsu Ekimae
Alpha Living Takamatsu Hyakkenmachi
Rest Villa Kinugasayama Koen

Sompo Care

Rest Villa Hiroshima Hikarigaoka
Rest Villa Sagamihara Chuo
Sompo no ie Nishitanabeekimae
Sawayaka Hinodekan
Sawayaka Riverside Kurinoki

Sawayaka Club

Sawayaka Obatake Sanbankan
Sawayaka Kaikyokan
Sawayaka Meisuikan
Sawayaka Heart Life Nishikyogoku

Nichii Gakkan
Nihon Kaigo Iryo Center
Cedar

Average remaining period

16.3Years(Note1) In case that the property leased to multiple tenants, the information is based on lease agreements with the main tenant of operators.
(Note2) All leasing contracts are ordinary lease contracts.
(Note3) “Remaining Lease Contract Period” indicates period remaining as of April 30, 2019. “Average remaining period” is a weighted average with acquisition prices, rounded to
one decimal place.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

16

Properties Renewed in the 10th Fiscal Period
Sompo Care LAVIERE Sagamihara Chuo (Acquisition price: 1,170 million yen)Charm Sweet Ryokuchi Koen (Acquisition price: 1,950 million yen)

 Site Features

Approximately 1.2 km from
Sagamihara Station on the
JR Yokohama Line

Approximately 1.4 km from
Ryokuchi-Koen Station on the
Kita-Osaka Kyuko Railway
Namboku Line Property FeaturesThis property has privaterooms of over 18 m2, thestandard room size forfacilities with nursing care,equipped with a sink, toilet
and bed.



Replacement of air conditioners in room
<Construction cost: 3 million yen>

<After replacement><After renovation>

Ten years had passed since Sompo Care LAVIERE Sagamihara Chuo wascompleted, and in order to ensure that it did not lose competitiveness to competing
facilities in the area, renovation work was conducted to maintain its aesthetics
Conducting the necessary renovation work proactively helps improve thesatisfaction of facility staff in addition to residents and their families, and it enhances
the relationship with the operator.

Property Features
This property uses its strength asa large-scale facility, and its
common-use areas have plentyof space. In addition to the dining
areas on each floor, the highest
floor of the facility (F5) has a hall
for activities, etc.

Exterior renovation<Construction cost: 14 million yen>

<Before renovation >Site Features<Before replacement>

Ten years had passed since Charm Sweet Ryokuchi Koen was completed, and a
total of 50 air conditioners for rooms were replaced.
In addition to cost reduction by buying in bulk, we will also realize energy
conservation by proactively replacing air conditioners that have deteriorated. By
replacing them before the summer, residents will be able to live comfortably in therooms during the summer.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

17Section 3External GrowthProperty Acquired in 10th Fiscal Period (Ending April 2019)
Irise Komae Bettei (partial acquisition)

Increase rate of the number of people requiring support or nursing care in Komae City

Acquisition price: 394.5 million yen (Acquisition date: December 20, 2018, 30% quasico-ownership interest)
Operator: HITOWA Care Service Co., Ltd.
Facility type: Fee-based homes for the elderly with nursing care

The number of people requiring support or nursing care in Komae City was 3,778 in 2017,and is estimated to be 4,470 in 2020 (up 18% form 2017) and 5,296 in 2025 (up 40% from2017).
As for the entire Tokyo, the number of people requiring support or nursing care was591,631 in 2017 and is estimated to be 748,703 in 2025 (up 27% from 2017). Thus theincrease rate is greater for Komae City.

＜Number of people requiring support ornursing care in Komae City＞

Up 40%(Up 27% for Tokyo on average)

Estimate

First acquisition of a property located in highly populated Tokyo
Location

1-32-5 Higashi-nogawa,
Komae-shi, Tokyo

Appraisal value

399 million yen(Note)

Structure/ floors

RC/3F

Appraisal NOI
yield

4.6%

Quasi-co-owner

GK DA Healthcare 2

Area2,475.48m2

Number of rooms

59

Total floor area

2,016.73㎡

Occupancy rate

98.3% (Written explanationof important matter as ofJuly 1, 2018)

Construction
completion

January 2017

(Note) As of December 1, 2018. Calculated the amount for the 30% quasi-co-ownership interest.

(Source) Website of Komae City

(Reference) ＜Estimated population for Komae City＞

Site Features
2020
2025
2017
Various flowers are planted in the facility site. With cherry blossoms running along(estimate) (estimate)Nogawa Green Space in the vicinity, a pleasant environment has been created in the
Total population (persons)81,63381,81381,566
community along with the Kitami Fureai Park on the east side of the Property.
Elderly population (persons)
19,67020,064
20,495
Area Features
Rate of population 65 years or older
24.1%
24.5%
25.1%
The area within a 3-km radius of the Property spans all of Komae City and part of
Chofu City and part of Setagaya Ward. The number of elderly people aged 75 years
Number of people requiring
3,778
4,470
5,296
or over is 122,000, accounting for 32.6% of the total population of the two cities andsupport/nursing care (persons)
one ward. The number of elderly people aged 75 or over in Komae City is expected to
Ratio against total population
4.6%
5.5%
6.5%
increase to 12,400 in 2025 from 10,600 in 2018.
Property Features
The Property is a relatively new facility, completed in 2017, and has private rooms of
mainly around 18 m², the standard room size for facilities with nursing care. The
This document
is notmaterial
disclosedin compliancewith the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
rooms areequippedwitha sink andtoilet.
NHI advises readers to make investment decisions at their own judgment.
19Change in Asset Size
Continuous external growth through acquisition of carefully selected properties(million yen)

25,00018,60820,00019,318 19,318 19,318 19,318 19,318 19,712

16,05815,00013,28010,0005,000

0Listing

End of the
3rd FP(endedOctober2015)

End of the
4th FP(ended April
2016)

End of the
5th FP(endedOctober
2016)

End of the
6th FP(ended April
2017)

End of the
7th FP(endedOctober
2017)

End of the
8th FP(ended April
2018)

End of the
9th FP(endedOctober
2018)

End of the10th FP(endedApril 2019)

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

20

Introduction of Operators
Highly reliable operators
Operator

Nichii Gakkan

Number of Number ofmanaged operating
facilities
rooms(Note1,2)(Note1)

428

13,910Established

August, 1973

Attributes

Listed on the first section of the Tokyo Stock
Exchange
Subsidiary of Sompo Holdings, Inc., a company
listed on the first section of the Tokyo Stock
Exchange
Subsidiary of Sohgo Security Service Co,. Ltd., acompany listed on the first section of the Tokyo
Stock Exchange

Sompo Care

424

25,942

May, 1997

Wisnet124

3,493

January, 1998

Hitowa care service

114

6,911

November, 2006 −Sawayaka Club

85

4,943

Subsidiary of Uchiyama Holdings Co., Ltd., a
December, 2004 company listed on the first section of the Tokyo
Stock Exchange

Super Court

51

3,596

August, 1984−

Charm Care Corporation

48

3,209

May, 1995

Listed on JASDAQ Standard on the Tokyo Stock
Exchange

Cedar

42

2,254

April, 1981

Listed on JASDAQ Standard on the Tokyo Stock
Exchange

Anabuki Medical Care

30

1,338

June, 2009

Subsidiary of Anabuki Kosan Inc., a company listedon the first section of the Tokyo Stock Exchange

Nihon Kaigo Iryo Center

21

905

October, 1997

Silver Heights Sapporo

3321

December, 1961 −(Note1)(Note2)

Diversification of Operators
Hitowa care service 2.0%

Nichii Gakkan 1.3%

Nihon Kaigo Iryo Center 4.8%
Silver Heights Sapporo
6.1%
Cedar 6.5%

Sompo Care
23.7%

Super Court 8.0%
Wisnet 8.0%

Sawayaka
Club 16.7%

AnabukiCharm Care
Medical Care 12.9%
Corporation 9.9%

Asset size in which lease agreement
is concluded with a single operator

40% or less−
(Note) The total acquisition price by operator as a percentage ofthe total acquisition price is indicated, rounded to one
decimal place.

Number of managed facilities and Number of operating rooms indicate the number of facilities and the number of rooms
for fee-based homes for the elderly, group homes and elderly housing with supportive services based on operators’
websites and interviews with them (as of April 30, 2019).
Operators are listed in order of the number of facilities they manage.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

21

Portfolio Map（as of June 20, 2019）
Owned properties are diversified over 14 prefectures

Hokkaido Area
No. of Operators: 1(Note) Red numbers refer to Three Major Metropolitan Areas and blue numbers to Core City Areas. The
background colors for property names indicate types of facilities; orange for fee-based homes for theelderly with nursing care, blue for residential-type fee-based homes for the elderly and yellow-green
for elderly housing with supportive services.

Chubu Area
No. of Operators: 3

Chugoku Area
No. of Operators: 3

Ratios of Investment in Regions
Tohoku Area
No. of Operators: 1
Kanto Area
No. of Operators: 5

Kinki Area
No. of Operators: 5

RegionTargetincorporation
incorporation
ratio(*)
ratio

The greater Tokyo area: Tokyo, Kanagawa, Chiba
Three Major and Saitama prefectures
Metropolitan The Chukyo area: Aichi, Mie and Gifu prefectures
The Kinki area: Osaka, Kyoto, Hyogo, Nara andAreas
Shiga prefectures

50％
or more61.8％

Core City
Areas

Cities outside the Three Major Metropolitan Areas
with populations of 200,000 or more

50％
or less

38.2％

Other

Cities outside the Three Major Metropolitan Areasand the Core City Areas with populations under
200,000

10％
or less

0.0％

Shikoku Area
No. of Operators: 2
Kyushu Area
No. of Operators: 3

Definition（＊） Incorporation ratio is based on the acquisition price.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

22

Pipeline Development
Increase in the number of property acquisitions using bridge funds formed by Daiwa Securities Group (sponsor) and Daiwa ACA HealthCare as pipelines.

Sponsor’s bridge funds＜Pipeline with properties totaling 24 billion yen (part)＞

Nichii Home Kachidoki

Airanomori
Higashi Ofuna

Plaisant GrandMinamiyukigaya

Investment
Corporation
Irise Komae Bettei(70% quasi-co-ownership interest)

Alpha Living Takamatsu
Konyamachi(Tentative) Kamakurayama Project

Daiwa ACA HealthCare Inc.
＜Conclusion of a pipeline support agreement with Daiwa ACA HealthCare, of which a stake of 66% is heldby the sponsor＞
 Seek to acquire properties from funds formed by Daiwa ACA HealthCare going forward

Daiwa ACA HealthCare Inc.
[Principal businesses] Investment in care facilities/hospitals in Japan

SponsorInvestment(66%)

 Investment in promising nursing care-related
real estate and hospital real estate Investment in operators which own healthcare
real estate(Business succession of medical corporations,care providers, etc.)

Existing facilities anddeveloped/value-added
properties

Futurepipelines

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

23

(Reference) About the Acquisition of ORIX Living Corporation by
Daiwa Securities Group
Daiwa Securities Group (sponsor) announced that it will make ORIX Living Corporation its subsidiary (March 2019)
Announced May 21, 2019, Extracts from Daiwa Securities Group’s FY2019 Management Strategy Presentation

Providing Solutions to Elderly Customers with the Acquisition of ORIX Living Corporation
Daiwa Securities Group decided to acquire all of the issued shares of ORIX Living Corporation and make it a subsidiary.
Conducted investment from the perspectives of diversifying the business portfolio, synergies with existing businesses, andachievement of SDGs.
Acquisition of ORIX Living(assuming closing during the first half of FY 2019)

Goal of Acquisition

100% acquisition

Conducted investment from the perspectives of diversifying the businessportfolio, synergies with existing businesses, and achievement of SDGs.

ORIX Living Corporation

Principal
business

Operation of fee-based nursing homes and rental housing for the elderly

Facilities undermanagement

 Operation of 32 facilities under the names of Good Time Living and
PLATESIA (2,726 rooms)
 5th in the number of rooms under management among residential-type feebased homes for the elderly Pioneer in use of robots and ICT devices for elder care services

Facilities operated
in the Kanto region (17)Hasuda,Saitama
SaitamaPrefecture

Nagareyama

Facilities operated
in the Kansai region (15)Hyogo
Prefecture

Tokyo

Kanagawa
Prefecture
Chiba Prefecture
Osaka

MikageKyoto

Greater diversification & expansion of the business portfolio
Improved ability to provide retail businesssolutions

Name

Stronger solutions for
elderly customers
Improve relationships withresidents and their families.
Introduce facilities to customers
of Daiwa Securities.

Existing businessportfolio

Contribution to the
SDGs
Contribute to “health &longevity,” a priority issue forJapan

Strengthening the realestate asset
management business
Further expansion of AUM

Expansion & diversification of the real estate
Center-MinamiThis document is not material
disclosed in compliance with the Korigaoka
Financial Instruments and Exchange Act or any regulation of similar asset
nature, management
nor is it intended forthe purposesof solicitation.
business
portfolio
NHI
advises readers to make investment decisions at their own judgment.
Kameido24

Section 4

Financial Status

Status of Interest-Bearing Liabilities (as of April 30, 2019)
Status of Interest-Bearing Liabilities (as of October 31, 2018)
Term

LenderResona Bank (**)
Current
Mizuho Bank (**)
Portion of(**)
Long-term Mizuho Trust & Banking
Sumitomo Mitsui Trust Bank (**)(**)

Mizuho Bank

Mizuho Trust & Banking

700
500

0.524%

500

0.524%
0.524%

500

0.474%(**)

800

0.402%

500

The Musashino Bank(**)

500

(**)

Sumitomo Mitsui Trust Bank
Shinkin Central Bank(**)(**)

Shinsei BankThe Dai-ichi Life Insurance

Fixed

500
(**)

0.265%

October 31, 2019

LTV(Note)

April 28, 2016

April 30, 2020

June 1, 2015

May 29, 2020

October 15, 2015

October 30, 2020

46.6％

Averageremaining
period (Note)

October 31, 2022
October 31, 2017

October 30, 2020
April 28, 2022

2.0 years

0.467% September 28, 2018 September 29, 2023
0.390%

400

0.390%

300

0.467%

200

0.480%

Ratio of Long-Term Loans Payable andShort-Term Loans Payable

November 5, 2014

0.365%

1,200

9,800

Repayment
deadline

0.532%
0.138%

(**)

Total

0.532%

500

Shinkin Central Bank
Shinsei Bank

Fixed

Drawdown

0.532%

500

Resona Bank

Long-term

(**)

1,000

Interest(**)

The Musashino Bank
Mizuho Bank(**)

Balance
Interest(million yen)
1,200

-

October 31, 2022
October 31, 2018-

September 29, 2023
October 31, 2023-

Ratio of Fixed Rates andFloating Rates-(Note) LTV and average remaining period indicate figures
calculated as of April 30, 2019, rounded to the firstdecimal place. LTV is calculated based on total assets.

Repayment Schedule(million yen)
3,000
2,500

current portion of
long-term loans payable

2,000

34.7%

Long-termloans payable

Ratio offixed rate

1,500

100.0%

1,000

65.3%

(*) Interest rates are rounded to the third decimal place.
(**) For loans of which floating interest rates have been converted to, in effect, fixed rates through a swap
agreement, interest rate indicates the rate after such conversion.

500
011th FP 12th FP 13th FP 14th FP 15th FP 16th FP 17th FP 18th FP 19th FP
ending ending ending ending ending ending ending ending ending
Oct.
Apr.
Oct.
Apr.
Oct.
Apr.
Oct.
Apr.
Oct.
2019
2020
2020
2021
2021
2022
2022
2023
2023

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

26

Overview of the Unitholder Benefits Program

With the cooperation ofoperators who are the tenants,
the unitholder benefits
program will be offered
to unitholders as of the end of
fiscal period ended April 2019.

<COCO Juku>
 Free enrollment<New York University-Professional Departmentof American Language Institute Tokyo school>
 Free enrollment and discount from tuition<Nichii Life>
 Discount voucher for house keeping,childcare and long-term care service

 Discount coupon for the initial
lump sum payment (5%discount) Free voucher for an overnight
trial stay (with meals) Free voucher for a facility tour
(with lunch provided) Discount coupon for the initial
lump sum payment (200,000 yen
discount from the initial lump sum
payment, or in the case of the planof 0 yen initial lump sum payment,
discount the amount equivalent to
the monthly rent) Free voucher for an overnight trial
stay (with meals) Free voucher for an overnight
trial stay (with meals) Free voucher for a one-day
facility tour (with lunch
provided) Furniture presented to the newresident for the below “Facilities
Available”(chosen from the catalog Anabuki
Medical Care provides)(worth 50,000 yen excluding tax, in
excess of 50,000 yen the difference shallbe paid by the resident, can also choose
two or more pieces of furniture if it iswithin 50,000 yen)<For the contract of lump sum payment plan> Discount from the initial lump sum payment(200,000 yen or 3% discount from the initial
lump sum payment, whichever is thegreater)<For the contract of monthly payment plan> From the monthly payment, persistent
discount of 3% of the amount equivalent to
the monthly rent (until the end of thecontract term) Free one-day facility tour (with lunch
provided) Free voucher for an overnight
trial stay (with meals) Free voucher for an overnight trial stay(with meals) one-time-only Free voucher for a facility tour (withlunch provided) one-time-only 50,000 yen cash back for the monthly
payment for the new resident(one-time-only, need to stay more than
three months after moving into the facility) 10% discount coupon for the
first monthly payment
 Free voucher for an overnight
trial stay (with meals) Free voucher for a one-day
facility tour (with lunch
provided) Discount on occupancy
expenses (discount of 2
month’s rent of the facility
upon moving in) Free voucher for a one-day facility tour
(with lunch provided)
 Free Monthly Usage fee (Equivalent to
two months rents)

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

27

Memorandum

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

28Section 5

Initiatives for ESG

Efforts on ESG | Sustainable Development Goals (SDGs)


The Asset Management Company of the Investment Corporation is making efforts to realize the philosophy of “Sustainable Development
Goals (SDGs)” based on “Passion for SDGs 2018~ Daiwa Securities Groupʼs SDGs Declaration~” announced by Daiwa Securities Group Inc.,
the sponsor group.

Sustainable Development Goals (SDGs)
SDGs are international goals unanimously adopted at the UN
Summit in September 2015.
It is composed of “17 goals, 169 targets and 232 indicators”
effective until 2023 pledging that no one will be left behind to realize
a society with diversity and inclusivity in sustainable development.
Following are the five characteristics.
Universality

All countries including developed countries shall act

Inclusivity

Ensuring that no one will be left behind by reflecting thephilosophy of security

Participatory

All stakeholders shall play their roles

Integrity
Transparency

Making integrated efforts on the society, economy andenvironment
Conducting regular follow-up
Source: Website of Ministry of Foreign Affairs

Passion for SDGs 2018―Daiwa Securities Groupʼs SDGs Declaration―
Daiwa Securities Group Inc. regards “SDGs (Sustainable Development Goals)” (*) adopted by the UN in 2015 as an important goal leading the world, and is making proactive efforts to realize an
affluent society and enriched lives of citizens by achieving both the pursuit of economic value and the resolution of social issues through the Groupʼs business.

●Creation of shared value
Creating both economic value and social value of corporations at the same time by making
efforts to solve social issues with flexible ideas without being bounded by preconceived ideas
as a comprehensive securities group providing a wide range of services satisfying the needsfrom various customers.

●Partnership with stakeholders
Aiming to contribute to the resolution of a wide range of social issues through the partnershipwith each stakeholder by utilizing the characteristics of the Group which connects countries,
companies, investors, etc.

●Realization of various personnel training and work style
Making efforts to realize various personnel training and work style by promoting work-lifebalance and supporting the success of female and veteran employees as well as creating anenvironment where all employees regardless of gender and age are satisfied and able tomaximally demonstrate their skills.

●Improvement and spread of awareness
Intending to provide and spread an understanding on SDGs to all executives as well as
contributing to the improvement of the awareness on SDGs of customers through the Groupʼsbusiness as the leader in the financial and capital market.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

30

Initiatives for ESG
The Asset Management Company positions initiatives for ESG (Environment, Social, Governance) as important management
issues.
 NHI contributes to “Health and welfare for all” within “Achievement of Good Health and Longevity,” which is a priority of Japanin the SDGs Implementation Guiding Principles set by the SDGs Promotion Headquarters.


ESG Policies (established March 2019)

In managing assets, NHI has determined that emphasizing environment, social, and governance (ESG) contributes to improving corporate value in themedium to long term, and we focus our efforts on the following items.

1. Initiatives for Environmental Conservation (Environment)
Through measures that contribute to environmental conservation and installation of facilities and equipment, etc., we will proactively promote initiatives
that lead to environmental conservation such as resource and energy conservation.
2. Connection with Society (Social)Through IR activities, etc., we proactively disclose information and are accountable to all of our stakeholders. By providing high-quality, comfortable
spaces, we fulfill our corporate social responsibility.
3. Corporate governance (Governance)
Adhering to laws and regulations and rules, we are aware of the importance of corporate ethics and compliance, and our decision-making is highly
transparent and rational.

Environment
Energy-saving initiatives█ Installation of solar panels█ Installation of LED lighting

30.3%* Actual figures from January to
December, 2018

Reduction ratio of electricity
consumption

Annual reduction ratio ofelectricity consumption throughlighting equipment*

Annual reduction rate of electricity
generation*[Minna-no-ie Chuo-ku En’nami]█ Replacement of air conditioners

15.3%

68.0%
[Verger Hirakata]* Forecast of manufacturer withinstallation of LED lighting[Charm Sweet Ryokuchi Koen]* Forecast of manufacturer with
air conditioning replacement

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

31

Initiatives for ESG (Social/Governance)
SocialOperator Opinion Exchange Meeting/Exchange with Local Communities
In January 2019, a meeting for operators to exchange opinions was
held.

In March 2019, participated in a private viewing of day service
centers.

The Asset Management Company hosted a meeting between two
operators to exchange opinions. This included a private viewing of
Sawayaka Omiyakan and Minna-no-ie Omiya Tsutsujigaoka Park.
Opinions were exchanged on facility operations and each companies’
initiatives. These measures will continue to be conducted going
forward.

Established in October 2018. The Asset Management Company
and PM companies participated in the private viewing. Theyexperienced practical rehabilitation training and brain training
programs. There also was interaction with care managers, local
residents, facility staff, and residents.

*Participating operators: Sawayaka Club Co., Ltd. and Wisnet Co., Ltd.

GovernanceCorporate Governance

The Asset Management Company of NHI has established a governancesystem that gives top priority to compliance, and strives to prevent conflictsof interest, manage risks and comply with laws and regulations.

Compliance System


The Asset Management Company not only adheres strictly to all laws andregulations, rules, internal regulations and market rules related to its
business, but also focuses on conducting sincere and fair corporate activities
while fully understanding social norms.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

32

Appendix

Memorandum

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

34

Surrounding Status of Healthcare Facilities : Progress of aging society
Domestic demographics by age
Population(10 thousand)Actual figures

75 yearsor older65-74
years old

15-64
years old

0-14
years old

Population aging rate (rate of population 65 years or older)

Changes and ratio of elderly population living alone
Population(10 thousand)Actual figures

Male

Female(％)

Estimatedfigures(%)

Male

Estimatedfigures

Female(%)(Source) Cabinet Office “White Paper on Aging Society 2017”

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

35

Market Size of Healthcare Facilities and Fee-based Homes
for the Elderly (by price)
Market size of fee-based homes for the elderly and elderly housing with supportive services is 8 trillion yen, therefore there is much room for NHI to expand

Market size by price (Fee-based homes for the elderly requiring
nursing care/who are independent) (as of June 2016)

Market size of healthcare facilities（as of Oct. 2017）
3 types of facilities
covered by nursing careinsurance services

Elderly housingwith supportive services
2,329.8 bil. yen（10.0％）

High

12,232.7 bil. yen（52.5％）

Zone of
Owned properties

Fee-based homes
for the elderly

5,987.0 bil. yen（25.7％）

Group Homes
2,740.9 bil. yen（11.8％）

12.6 billion yen（1,075 rooms）

500 thousand
yen/month

Price (assumed monthly fees)

Total
23,290.3
billion yen

72.6 billion yen（10,057 rooms）

Low

600 thousand
yen/month33.8 billion yen（6,631 rooms）

118.2 billion yen（21,466 rooms）
350 thousand
yen/month

400 thousand
yen/month339.4 billion yen（76,819 rooms）
200 thousand
yen/month78.3 billion yen（21,796 rooms）
200 thousand
yen/month

10,129 billion yen（318,712 rooms）

Requiring nursing care
Source：KPMG Healthcare Japan Co., Ltd

11.0 billion yen（5,909 rooms）

Independent

Residents’ physical condition

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

36

Initiatives for ESG (Social) (1)Social contribution to solving important issues in Japan

Provision of excellent properties operated by skillful operators that are carefully selected by NHI, where the elderly can live with peace of mind.

Careful selection of operators and monitoring after making investments
Operator evaluation items at thetime of property acquisition
 Quality and variety of services that each operator provides
 Credibility and operational skills of the operator

Continuous facility management/monitoring system The Asset Management Company strives to enhance value of facilities by regularly collecting
information on the operation from the operators and the facility directors in cooperation with PMcompanies, etc.
 The Asset Management Company visits facilities, etc. and conduct facility monitoring, interviews, etc.
including the following

 Monitoring (Twice or more/year)
・The Asset Management Company and PM
companies visit operators’ facilities andconduct examinations every fiscal period.
 Interviewing (Once or more/year)
・Confirming the following items withdirectors and care providers at facilities:(1) Responses to residents(2) Employees training program(3) Status of governance (including items
to check for prevention of resident
mistreatment)＜Facility monitoring＞
・Nichii Care Center
Fukushima Omori (Apr. 2019)・Sawayaka Heart Life
Nishikyogoku (Apr. 2019)

・Super Court JR
Nara-Ekimae (Apr. 2019)

・Irise Komae Bettei(Apr. 2019)

Provision of excellent healthcare facilities operated by skillful operators
This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

37

History of Revisions to Nursing Care Fees
Time of revision
FY 2005 revision(Enforced in October
2005)

Main points of revision
 Securement of fairness between at-home care and facility services, etc.

Review of nursing care fees related to living costs and meal costs

 Promotion of encouraging self-support and at-home nursing care

FY 2006 revision

FY 2009 revision

FY 2014 revision-0.5%【-2.4%】

Promotion of nursing care prevention and rehabilitation
・Changing prevention benefits provision from piecework payment to comprehension payment bymonthReinforcement of support for those requiring medium- to high- levels of nursing care・Additional payment for home-visit long-term care and home-visit nursing care provided to thoserequiring high level of cares, etc.

【】: Rate of revision including
revision in FY2005

 Improvement in working conditions of care providers+3.0%

Securement of care providers / improvement of working conditions of care providers
・Additional payment in accordance with care providers’ expertise, career, etc.
 Securement of improved working conditions for care staff and promotion of

FY 2012 revision

Rate of revisioncommunity comprehensive careFoundation of additional payment for improving working conditions
Establishment of new services such as around-the-clock periodical door-to-door service
 Response to increased burden due to the consumption tax hike[At-home：-0.1%] 【-1.0%】[Facility：±0.0%] 【-4.0%】[At-home：＋1.7%][Facility：＋1.3%]+1.2%[At-home：＋1.0%][Facility：＋0.2%]＋0.63％

 Initiatives for building a “community comprehensive care system”

FY 2015 revision

FY 2017 revision

FY 2018 revisionFurther reinforcement of care for those requiring medium- to high- levels of nursing care and those withdementia
Promotion of securing care staff
Enhancement of appropriateness of service assessment and establishment of efficient system forproviding services-2.27%

 Improvement in working conditions of care providers
Established a new system to raise salary in accordance with care provider experience or qualifications
and raised monthly salary by 10,000 yen-worth on average.

＋1.14％

 Promotion of establishing a system to provide high-quality and efficient long-term care service
Promotion of community comprehensive care system
Realization of high-quality long-term care service contributing to self-reliance and prevention ofdeterioration in condition
Securement of diversified personnel and improvement of productivity
Securement of stability and sustainability of the system through enhancement of appropriateness andfocus in long-term care service[At-home：-1.42%][Facility：-0.85%][At-home：＋0.72％][Facility：＋0.42％]+0.54％

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

38

Introduction of Operators (1)Company name

Nichii Gakkan Company

Company name

Sawayaka Club Co., Ltd.

Head office

2-9 Kanda-Surugadai, Chiyoda-ku, Tokyo

Head office

2-10-10 Kumamoto, Kokura-kita-ku, Kitakyushu-shi, Fukuoka

Representative director Representative director, Fumiharu Uchiyama

Representative director Chairman, President and CEO, Nobusuke Mori
Established

August 2, 1973

Capital11,933 million yen

Attributes(listed market)

Listed company(First Section of the Tokyo Stock Exchange, Securities code: 9792)

Principal businesses

Medical Support Business, Nursing Care and Health Care Business, Education
Business and Child-care Business

Established

December 1, 2004

Capital

200 million yen

Attributes(listed market)

Consolidated subsidiary of Uchiyama Holdings Co., Ltd.
(First Section of the Tokyo Stock Exchange, Securities code: 6059)

Principal businesses

Operation of fee-based homes for the elderly, elderly housing with supportive
services, group homes, short-stay facilities, helper stations, care plan centers,
nursing care day service centers and multifunctional nursing care in a small
group home setting

Parent company

Uchiyama Holdings Co., Ltd.

Nichii Care Center Fukushima Omori
Sawayaka Hinodekan
Company name

Sompo Care Next Inc.

Head office

4-12-8 Higashi Shinagawa, Shinagawa-ku, Tokyo

EstablishedMay 1, 1997

Capital3,925 million yen

Attributes(listed market)

Consolidated subsidiary of Sompo Holdings, Inc. (First Section of the Tokyo
Stock Exchange, Securities code: 8630)

Principal businesses

Operation of fee-based homes for the elderly, elderly housing with supportive
services and group homes; Home-visit care (home assistance) service business

Parent company

Sompo Holdings, Inc.

Company name

Cedar Co., Ltd.

Head office

1-7-19 Obatake, Kokura-kita-ku, Kitakyushu-shi, Fukuoka

Representative director Representative director, Takayasu Zakoda
Established

April 25, 1981

Capital

432 million yen

Attributes(listed market)

Listed company(JASDAQ of the Tokyo Stock Exchange, Securities code: 2435)
Operation of fee-based homes for the elderly, elderly housing with supportive
services, group homes, short-stay facilities, helper stations, care plan centers,
nursing care day service centers and multifunctional nursing care in a small
group home setting

Principal businesses

Sompo Care LAVIERE
Hiroshima Hikarigaoka

Sompo Care LAVIERE
Sagamihara Chuo

(Note) The capital of Sompo Care Inc. is as of June 19, 2018.

Sawayaka Kaikyokan

シダー

Representative director Representative director, Ken Endo

Sompo Care LAVIERE
Kinugasayama Koen

Sawayaka Obatake Sanbankan Sawayaka Meisuikan

Sompo no ie
Nishitanabeekimae
La’nassica Arakogawa

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

39

Introduction of Operators (2)Company nameCharm Care Corporation

Company nameNihon Kaigo Iryo Center Co., Ltd.

Head office

3-6-32 Nakanoshima, Kita-ku, Osaka-shi, Osaka

Head office2-4-1 Hannancho, Abeno-ku, Osaka-shi, Osaka

Representative director Representative director, Takahiko Shimomura
Established

August 22, 1984

Capital

192 million yen

Attributes(listed market)

Listed company(JASDAQ of the Tokyo Stock Exchange, Securities code: 6062)
Operation of fee-based nursing homes for the elderly with care and fee-based
assisted-living homes for the elderly

Principal businesses

Representative director Representative director, Yusuke Taniguchi
Established

October 7, 1997

Capital50 million yen

Attributes(listed market)

Unlisted company

Principal businesses

In-home nursing care support business, home-visit nursing care business,
operation of rental housing for the elderly, selling and rental of equipment
covered by public aid, care worker training business, real estate business

Charm Sweet Ryokuchi Koen

Verger Hirakata

Company nameSuper Court Co., Ltd.

Head office

1-7-7 Nishihonmachi, Nishi-ku, Osaka-shi, Osaka

Representative director Representative director, Akiyoshi Yamamoto

Company name

Wisnet Co., Ltd.

EstablishedMay 19, 1995

Head office2-795 Mihashi, Omiya-ku, Saitama-shi, Saitama

Capital50 million yen

Attributes(listed market)

Unlisted company

Representative director Representative director, Yuuichi Miyazawa
Established

January 1998

Capital390 million yen

Principal businesses

Operation/management of fee-based homes for the elderly and housing for theelderly, operation/management of buildings and condominiums,
planning/design/construction of rental apartments, a nursing care worker
nurturing and training business, etc.

Attributes(listed market)

Consolidated subsidiary of Sohgo Security Service CO,. LTD., (First Section of
the Tokyo Stock Exchange, Securities code: 2331)

Parent company

Super Holdings Co., Ltd.

Principal business

Operation and management of group home for dementia, fee-based homes forthe elderly with nursing care, elderly housing with supportive services, helper
station, day service center, small scale multi-function home care, home care
support office, visiting nursing staion

Super Court JR Nara-Ekimae

Minna-no-ieꞏ Omiya Tsutsujigaoka Park

Minna-no-ie Chuo-ku En’namiThis document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

40

Introduction of Operators (3)Company nameHead office

Silver Heights Sapporo Co., Ltd.

Company nameAnabuki Medical Care Inc.

3-41, Fukuzumisanjou, Toyohira-ku, Sapporo-shi, Hokkaido

Head office2-8, Togiyamachi, Takamatsu, Kagawa

Representative director Representative director, Hirofumi Kaneko

Representative director Representative director, Yoshihisa Otani

Established

December 1961

Established

June 2009

Capital50 million yen

Capital

80 million yen

Attributes(listed market)

Unlisted company

Attributes(listed market)

Principal businesses

Operation of fee-based homes for the elderly, homecare service specified in theLong-Term Care Insurance Act, homecare support specified in the Long-Term Care
Insurance Act, purchase/sales, arrangement, lease and management of real estate,
etc.

Consolidated subsidiary of Anabuki Kosan Inc.
(First Section of the Tokyo Stock Exchange, Securities code: 8928)
Nursing care-related business (nursing care business, operation of fee-based
homes for the elderly, etc.), real estate management, advertising, etc.

Principal businesses

Silver Heights Hitsujigaoka No.3
Alpha Living Okayama
Nishigawa
Ryokudokoen

Company nameHITOWA Care Services Co., Ltd.

Head office

1-4-5 Roppongi, Minato-ku, Tokyo

Alpha Living Okayama Korakuen

Alpha Living Takamatsu
EkimaeAlpha Living
Takamatsu
Hyakkenmachi

Representative director Representative director, Yoshiteru Hakamada
Established

November 1, 2006

Capital

100 million yen

Attributes(listed market)

Unlisted

Principal businesses

Operations of fee-based homes for the elderly and elderly housing with supportive
services under the brand of “Irise”; and operations of group homes business andday services business across Japan centering on the Kanto region.

Parent company

HITOWA Holdings Inc.

Irise Komae Bettei

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

41

Ranking of Operators Based on the Number of Rooms
RankingCompany name(Note 1)
1 Sompo Care Inc.

Fee-based homes for the elderly withnursing care
Number of
Number of rooms
facilities
275
17,271

Residential-type fee-based homes
for the elderly
Number of
Number of rooms
facilities
3
91

Other housing for the elderly
Number of
facilities
132

Total (Note 2)

Number of
rooms
7,649

Number of
facilities
431

Number ofrooms
25,4872 Company A

251

13,338

60

3,564

2

109

316

17,061

3 Nichiigakkan Co., Ltd.

140

8,529

2

100

6

238

427

13,8674 Company B

128

8,089

43

2,705

1

51

172

10,8455 Company C

79

6,461

33

3,047

0

0

113

9,520

6 Company D

18

1,180

11

269

16

430

181

7,955

7 HITOWA Care Service Co., Ltd.

47

2,775

52

3,276

8

554

112

6,686

8 Company E

21

1,864

16

1,230

2

163

85

6,100

9 Company F

9

630

1

26

0

0

288

5,982

10 Company G

78

4,787

7

490

5

253

102

5,909

11 Company H

8

227

7

179

98

5,341

116

5,792

12 Company I

29

1,452

3

106

107

3,617

139

5,175

13 Company J

13

3,747

4

1,164

0

0

17

4,911
4,838

14 UCHIYAMA HOLDINGS Co.,Ltd.

53

3,703

15

921

0

0

81

15 Company K

50

3,525

8

467

5

273

68

4,373

16 ALSOK Group

46

2,165

4

148

6

215

139

4,183

17 Company L

38

1,759

6

122

8

293

159

4,132

18 Company M

0

0

0

0

128

3,998

128

3,998

19 Company N

27

2,118

0

0

16

1,141

81

3,970

20 Company O

3

290

0

0

1

20

21

3,510

21 Company P

36

2,082

0

0

0

0

106

3,414

22 Charm Care Corporation

42

2,894

4

320

0

0

46

3,214

23 Company Q

8

369

16

366

3

118

87

3,148

24 Super Court Co., Ltd.

17

1,097

27

1,958

1

59

45

3,114

25 Company R

22

1,717

12

650

5

296

44

2,735

26 Company S

3

111

4

102

5

192

59

2,733

27 Company T

5

379

24

2,025

0

0

32

2,726

28 Cedar Co., Ltd.

41

2,370

0

0

0

0

44

2,415

29 Company U

21

1,792

0

0

6

494

28

2,313

30 Company V

40

2,060

1

20

4

186

45

2,266

(Note 1) The companies are ranked in descending order according to the number of rooms in the
total column.
(Note 2) The total figures include group homes for the elderly with dementia and other facilities forthe elderly operated by related companies.
(Source) Shukan Koreisha Jutaku Shimbun (Weekly elderly housing newspaper)(Note 3) UCHIYAMA HOLDINGS is a parent company of Sawayaka Club.

(Note 4) The ALSOK Group is the parent company of Wisnet, Co., Ltd.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

42

Management Back-up Agreement

Hokkaido Area
No. of Operators: 6
Asset
Management

NHI
Ownership

Healthcare
facility

Healthcare
facility

Healthcare
facility

A

B

C

Operator

Operator

Operator

A

B

C

Management Back-up Contractors

Asset Management
Company
Each Operator has
concluded amanagement
back-upagreement with
NHI.

Chubu Area
No. of Operators: 4
Chugoku Area
No. of Operators: 5
Tohoku Area
No. of Operators: 5

Discuss handoverof operation toother operators incase ofcontingency

Kanto Area
No. of Operators: 6

Kinki Area
No. of Operators: 8
Shikoku Area
No. of Operators: 4
Kyushu Area
No. of Operators: 5

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

43

Appraisal Value at End of Fiscal Period (as of April 30, 2019)
End of 10th FP

End of 9th FP

Overview of appraisal report
Property nameAppraiser

Appraisalvalue

Direct capitalization method
Price(million yen) (million yen)

DCF method

Cap rate

Price

Discount rate Terminal cap(%)(million yen)rate (%)(%)

Appraisal
NOI(million yen)Appraisal
value

Difference(End of 10th
FP - End of
9th FP)(Note1)(million yen) (million yen)

Nichii Care Center Fukushima Omori

Japan Real Estate Institute

339

342

5.7

336

5.5

5.9

22

341

-2

Sompo Care LAVIERE Hiroshima Hikarigaoka

Japan Real Estate Institute

1,220

1,230

5.2

1,200

5.0

5.4

70

1,230

-10

Sompo Care LAVIERE Sagamihara Chuo

Daiw a Real Estate Appraisal

1,790

1,810

4.7

1,780

4.5

4.9

88

1,780

10

Charm Sw eet Ryokuchi Koen

Daiw a Real Estate Appraisal

3,030

3,070

4.6

3,010

4.4

4.8

143

3,060

-30

Saw ayaka Kaikyokan

Japan Real Estate Institute

898

907

5.3

889

5.1

5.5

50

898

-

Saw ayaka Meisuikan

Japan Real Estate Institute

812

819

5.3

805

5.1

5.5

47

813

-1

Saw ayaka Heart Life Nishikyogoku

Daiw a Real Estate Appraisal

1,130

1,140

5.2

1,120

5.0

5.4

60

1,140

-10

Verger Hirakata

Daiw a Real Estate Appraisal

1,560

1,570

5.2

1,550

5.0

5.4

84

1,590

-30

Sompo Care LAVIERE Kinugasayama Koen

The Tanizaw a Sōgō Appraisal

2,090

2,120

4.7

2,080

4.8

4.9

100

2,060

30

La'nassica Arakogaw a

The Tanizaw a Sōgō Appraisal

1,460

1,470

5.0

1,450

5.1

5.2

74

1,430

30

Saw ayaka Hinodekan

Daiw a Real Estate Appraisal

921

932

5.0

916

4.8

5.2

47

920

1

Saw ayaka Riverside Kurinoki

Daiw a Real Estate Appraisal

323

329

5.0

321

4.8

5.2

17

323

-

Saw ayaka Obatake Sanbankan

Daiw a Real Estate Appraisal

355

360

5.1

353

4.9

5.3

18

355

-

Super Court JR Nara-Ekimae

The Tanizaw a Sōgō Appraisal

1,750

1,770

5.0

1,740

5.1

5.2

91

1,750

-

Minna-no-ie Omiya Tsutsujigaoka ParkThe Tanizaw a Sōgō Appraisal

776

786

4.9

772

5.0

5.1

39

776

-

Minna-no-ie Chuo-ku En’nami

Japan Real Estate Institute

861

870

4.9

851

4.7

5.1

44

860

1

Silver Heights Hitsujigaoka No.3

Daiw a Real Estate Appraisal

1,340

1,350

4.9

1,330

4.7

5.1

70

1,340

-

Alpha Living Okayama Nishigawa Ryokudokoen

Daiw a Real Estate Appraisal

788

802

4.5

782

4.3

4.7

37

787

1

Alpha Living Okayama Korakuen

Daiw a Real Estate Appraisal

659

671

4.7

654

4.5

4.9

32

658

1

Alpha Living Takamatsu Ekimae

Daiw a Real Estate Appraisal

641

652

4.6

636

4.4

4.8

30

641

-

Alpha Living Takamatsu Hyakkenmachi

Daiw a Real Estate Appraisal

627

634

4.7

624

4.5

4.9

31

626

1

Sompo no ie Nishitanabeekimae

The Tanizaw a Sōgō Appraisal

739

748

4.7

735

4.8

4.9

36

739

-

Japan Real Estate Institute

399

405

4.4

393

4.2

4.6

17

-

-

24,50824,787-

24,327

-

-

1,260

24,117-8

Irise Komae Bettei(Note2)

Total(Note1) Difference of appraisal value does not include properties acquired in the 10th FP.
(Note2) "Irise Komae Bettei" is equivalent to a quiasi-ownership of 30%.
This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

44

Portfolio List (1)Property nameLocation(residential address)

AccessNichii Care Center
Fukushima Omori

Sompo Care LAVIERE
Hiroshima Hikarigaoka

Sompo Care LAVIERE
Sagamihara Chuo

21-3 Omori Ojibouchi,
Fukushima-shi, Fukushima

2-40 Hikarigaoka,
Higashi-ku, Hiroshima-shi,
Hiroshima

Approximately 2.2km from
Fukushima Station on the
JR Tohoku Main Line

Approximately 1.1km fromApproximately 1.2km from
Hiroshima Station on the JR Sagamihara Station on the
Sanyo Main Line
JR Yokohama Line

Charm Sweet
Ryokuchi Koen

Sawayaka Kaikyokan

3-6-3 Chuo, Chuo-ku,
3-2-21 Nishiizumigaoka,
Sagamihara-shi, Kanagawa Toyonaka-shi, Osaka

1-11-13 Hama-machi,
Wakamatsu-ku,
Kitakyushu-shi, Fukuoka

Approximately 1.4km from
Ryokuchi-koen Station on
the Kita-Osaka Kyuko
Railway Namboku Line

Approximately 1.1km from
Wakamatsu Station on the
JR Chikuhō Main Line

Acquisition price(million yen)

265

960

1,170

1,950

630

Real estateappraisal value(million yen) (Note 1)

339

1,220

1,790

3,030

898

NOI yield (%) (Note 2)

8.5

7.3

7.6

7.4

8.0

Depreciation(million yen) (Note 3)

5

11

10

17

7

Structure / floors (Note 4)

S/3F

RC/7F

RC/5F

RC/6F

RC/B1・5F

Leasable area (m2)

1,964.68

4,133.82

3,732.95

5,329.73

2,694.42

Total leased area (m2)

1,964.68

4,133.82

3,732.95

5,329.73

2,694.42

Construction completion

March 2007

December 2005

March 2008

September 2006

October 2003

Number of rooms (rooms)

52

80

80

128

65

Occupancy rate (%) (Note 5)

100.0

93.7

96.2

98.4

100.0

Charm Care Corporation

Sawayaka Club Co., Ltd.

19.3

14.9

Operator
Remaining lease contract
period (year) (Note 6)(Note 1)
(Note 2)
(Note 3)(Note 4)

Nichii Gakkan Company

Sompo Care Inc.

14.9

Appraisal values are as of April 30, 2019.
NOI yields are calculated by dividing the appraisal NOI by the acquisition price.
Figures for depreciation are actual figures of the 10th FP ended in April 30, 2019.
For description of structure, “S” refers to steel-framed structure and “RC” refers to
reinforced concrete structure.

Sompo Care Inc.
14.9

14.9

(Note 5) Occupancy rates are obtained by dividing the number of residents indicated in the written
explanation of important matter by the number of rooms, rounded to one decimal place.
(Note 6) Remaining lease contract periods are as of April 30, 2019.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

45

Portfolio List (2)Property nameLocation(residential address)

Access

Sawayaka Meisuikan

Sawayaka Heart Life
Nishikyogoku

Verger Hirakata

5-7-6 Higashinarumizu, 8 Tsutsumishita-cho,
2-20-4 Koyamichi,
Yahatanishi-ku,
Nishikyogoku, Ukyo-ku, Hirakata-shi, Osaka
Kitakyushu-shi, Fukuoka Kyoto-shi, Kyoto
Approximately 2km from Approximately 1.2km
Kurosaki Station on the from Nishikyogoku
JR Kagoshima Main
Station on the Hankyu
Line
Kyoto Line

Sompo Care LAVIERE
Kinugasayama Koen

La’nassica Arakogawa

Sawayaka
Hinodekan

4-8-15 Koyabe,
Yokosuka-shi,
Kanagawa

4-34-1 Takagi-cho,Minato-ku, Nagoya-shi,
Aichi

2-2-33 Hinode,Chuo-ku,
Niigata-shi, Niigata

Approximately 1.4km
from Arakogawa-koen
Station on the Nagoya
Rinkai-kosoku Railway
Aonami Line

Approximately 1.7km
from Niigata Station on
the JR Joetsu
Shinkansen andShinetsu Main Line

Approximately 3.5km
Approximately 1.2km
from Kuzuha Station on from Kinugasa Station
the Keihan Main Lineon the JR Yokosuka
LineAcquisition price(million yen)

590

750

950

1,839

1,279

773

Real estateappraisal value(million yen) (Note 1)

812

1,130

1,560

2,090

1,460

921

NOI yield (%) (Note 2)

8.1

8.1

8.9

5.5

5.8

6.2

Depreciation(million yen) (Note 3)

7

6

10

16

17

8

Structure / floors (Note 4)

RC/6F

RC/B1・6F

RC/5F

S/4F

RC/B1・5F

S/3F

Leasable area (m2)

4,553.67

2,459.19

2,925.25

4,265.88

3,590.40

2,674.37

Total leased area (m2)

4,553.67

2,459.19

2,925.25

4,265.88

3,590.40

2,674.37

Construction completion

March 2005

August 2007

February 2007

March 2011

April 2008

July 2007

Number of rooms (rooms)

87

84

104

104

100

50

Occupancy rate (%) (Note 5)

96.5

98.8

78.5

86.5

96.0

96.0

Sawayaka Club Co.,Ltd.

Sawayaka Club Co.,
Ltd.

Nihon Kaigo
Iryo Center Co., Ltd.

14.9

14.9

14.9

Operator
Remaining lease contract
period (year) (Note 6)(Note 1)
(Note 2)
(Note 3)(Note 4)

Appraisal values are as of April 30, 2019.
NOI yields are calculated by dividing the appraisal NOI by the acquisition price.
Figures for depreciation are actual figures of the 10th FP ended in April 30, 2019.
For description of structure, “S” refers to steel-framed structure and “RC” refers to
reinforced concrete structure.

Sompo Next Inc.
15.4

Sawayaka Club Co.,Ltd.

Cedar Co., Ltd.
8.9

15.6

(Note 5) Occupancy rates are obtained by dividing the number of residents indicated in the written
explanation of important matter by the number of rooms, rounded to one decimal place.
(Note 6) Remaining lease contract periods are as of April 30, 2019.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

46

Portfolio List (3)Property nameLocation(residential address)

Access

Sawayaka Riverside
Kurinoki

Sawayaka Obatake
Sanbankan

Super Court JR
Nara-Ekimae

2-2-43 Hinode,Chuo-ku,
Niigata-shi, Niigata

1-6-37 Obatake,
Kokurakita-ku,
Kitakyushu-shi,
Fukuoka

Approximately 1.65km
from Niigata Station on
the JR Joetsu
Shinkansen andShinetsu Main Line

Approximately 280m
Approximately 2.5km
from Kokura Station on from Nara Station on
the JR Kagoshima Main the JR Kansai Main
Line
Line

1-5-35 Omiyacho,
Nara-shi, Nara

Minna-no-ieꞏ Omiya
Tsutsujigaoka Park

Minna-no-ie
Chuo-ku En’nami

Silver Heights
Hitsujigaoka No.3

2-214-3 Yoshinocho,
Kita-ku, Saitama-shi,
Saitama

5-5-17 En'nami,
Chuo-ku, Saitama-shi,
Saitama

15-4-38, Tsukisamu
Higashi Shijo, Toyohiraku, Sapporo-shi,
Hokkaido

Approximately 2.5km
from Miyahara Stationon the JR Takasaki
Line

Approximately 2.4km
from Kitayono Stationon the JR Saikyo Line

Approximately 1.2km
from Nango
Juhatchome Station on
the Tozai Line of the
Sapporo Municipal
SubwayAcquisition price(million yen)

266

289

1,569

740

838

1,200

Real estateappraisal value(million yen) (Note 1)

323

355

1,750

777

860

1,340

NOI yield (%) (Note 2)

6.4

6.5

5.8

5.3

5.3

5.9

Depreciation(million yen) (Note 3)

3

4

17

7

9

8

Structure / floors (Note 4)

S/4F

S/3F

RC/7F

RC/4F

RC/3F

RC/3F

Leasable area (m2)

1,349.39

1,411.78

5,057.07

1,800.03

1,963.03

7,267.56

Total leased area (m2)

1,349.39

1,411.78

5,057.07

1,800.03

1,963.03

7,267.56

Construction completion

October 2009

September 2011

June 2009

April 2012

February 2014

April 2003

Number of rooms (rooms)

33

50

155

33

51

109

Occupancy rate (%) (Note 5)

92.3

94.0

92.9

84.8

94.1

91.8

Sawayaka Club Co.,Ltd.

Sawayaka Club Co.,
Ltd.

Super Court Co., Ltd.

15.6

15.6

20.2

Operator
Remaining lease contract
period (year) (Note 6)(Note 1)
(Note 2)
(Note 3)(Note 4)

Appraisal values are as of April 30, 2019.
NOI yields are calculated by dividing the appraisal NOI by the acquisition price.
Figures for depreciation are actual figures of the 10th FP ended in April 30, 2019.
For description of structure, “S” refers to steel-framed structure and “RC” refers to
reinforced concrete structure.

Wisnet Co., Ltd.
17.8

Wisnet Co., Ltd.

Silver Heights SapporoCo., Ltd.

24.9

16.6

(Note 5) Occupancy rates are obtained by dividing the number of residents indicated in the written
explanation of important matter by the number of rooms, rounded to one decimal place.
(Note 6) Remaining lease contract periods are as of April 30, 2019.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

47

Portfolio List (4)Property name

Alpha Living
Okayama Nishigawa
Ryokudokoen

Alpha Living
Okayama Korakuen

Alpha Living
Takamatsu Ekimae

Alpha Living
Takamatsu
Hyakkenmachi

Sompo no ie
Nishitanabeekimae

Irise Komae Bettei

6-2 Chuo-cho, Kita-ku, 1-11-4, Hama, Naka-ku, 1-6, Nishiuchi-machi,
Okayama-shi,
Takamatsu-shi,
Okayama-shi,
Okayama
KagawaOkayama

8-11, Hyakken-machi,
Takamatsu-shi,
Kagawa1-1-21 Nishitanabe-cho, 1-32-5 Higashinogawa, Komae-city,
Abeno-ku, Osaka-shi,
Tokyo
Osaka

Approximately 1.5km
from Okayama Stationon the JR Sanyo MainLine

Approximately 1.9km
from Okayama Stationon the JR Sanyo MainLine

Approximately a fiveminute walk from
Takamatsu Station on
the JR Yosan Line

Approximately 1.1km
from Takamatsu
Station on the JR
Yosan Line

Approximately a twominute walk from
Nishitanabe Station on
the Osaka Municipal
Subway Midosuji Line.

Approximately 900
meters from Kitami
Station on the Odakyu
Odawara Line(approximately a 12minute walk)

Acquisition price(million yen)

730

610

605

605

710

394.5

Real estateappraisal value(million yen) (Note 1)

788

659

641

627

739

399

NOI yield (%) (Note 2)

5.1

5.3

5.1

5.2

5.1

4.6

Depreciation(million yen) (Note 3)

7

4

6

6

5

1

Location(residential address)

Access

Structure / floors (Note 4)

RC/7F

RC/4F

RC/6F

RC/10F

RC/9F

RC/3F

Leasable area (m2) (Note 5)

2,124.16

2,128.44

1,848.06

1,929.16

2,095.79

605.01

Total leased area (m2) (Note 5)

2,124.16

2,128.44

1,848.06

1,929.16

2,095.79

605.01

Construction completion

August 2014

May 1988

June 2014

June 2010

February 2007

January 2017

Number of rooms (rooms)

53

45

43

50

42

59

Occupancy rate (%) (Note 6)

78.1

93.7

86.3

85.1

100.0

98.3

Anabuki Medical CareInc.

Anabuki Medical CareInc.

Anabuki Medical CareInc.

Anabuki Medical Care
Inc.

16.2

16.2

16.2

16.2

Operator
Remaining lease contract
period (year) (Note 7)(Note 1)
(Note 2)
(Note 3)(Note 4)

Appraisal values is as of April 30, 2019. Appraisal values for “Irise Komae Bettei” is calculated forthe 30% quasi-co-ownership interest.
NOI yields are calculated by dividing the appraisal NOI by the acquisition price.
Figures for depreciation are actual figures of the 9th FP ended in October 31, 2018.
For description of structure, “S” refers to steel-framed structure and “RC” refers to reinforced
concrete structure.

Sompo Care Inc.

HITOWA Care
Services Co., Ltd.

7.9

27.8

(Note 5) The leasable area and total leased area in “Irise Komae Bettei” are those equivalent to 30/100 of the entire building.
(Note 6） "Irise Komae Bettei" lists the number of rooms in the whole facility.
(Note 7) Occupancy rates are obtained by dividing the number of residents indicated in the written explanation of importantmatter by the number of rooms, rounded to one decimal place.
（Note 8） A part of "Irise Komae Bettei" (quasi-co-ownership: 30%) is acquired on December 20, 2018, but the contract
remaining period is calculated as of October 31, 2018. Other facilities are also as of October 31, 2018.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

48

Status of Income (Loss) of Investment Real Estate Properties(as of April 30, 2019)(Unit: thousand yen)
10th Fiscal Period (from November 1, 2018 to April 30, 2019)
Property name

Property-related operating expenses

Property-related
operating revenue(Note 1)

Consignment
expensesNon-life
insurance
expenses

Taxes anddues

Repairexpenses

Depreciation

NOI(Note 2)

Other

Nichii Care Center Fukushima Omori

8

0

1

0

0

5

1

11

Sompo Care LAVIERE Hiroshima Hikarigaoka

15

0

2

0

-

11

0

36

Sompo Care LAVIERE Sagamihara Chuo

28

0

2

0

15

10

0

29

Charm Suite Ryokuchi Koen

23

1

4

0

0

17

0

72

Sawayaka Kaikyokan

9

0

1

0

-

7

0

25

Sawayaka Meisuikan

11

0

2

0

0

7

0

24

Sawayaka Heart Life Nishikyogoku

9

0

1

0

-

6

0

30

Verger Hirakata

18

0

1

0

5

10

0

37

Sompo Care LAVIERE Kinugasayama Koen

21

0

3

0

0

16

0

50

La’nassica Arakogawa

20

0

2

0

-

17

0

37

Sawayaka Hinodekan

10

0

1

0

-

8

0

24

4

0

0

0

-

3

0

8

Sawayaka Obatake Sanbankan

6

0

0

0

1

4

0

8

Super Court JR Nara-Ekimae

27

1

2

0

4

17

0

41

Minna-no-ie Omiya Tsutsujigaoka Park

10

0

1

0

0

7

0

19

Minna-no-ie Chuo-ku En’nami

13

0

2

0

-

9

0

22

Silver Heights Hitsujigaoka No.3

15

0

6

0

-

8

0

35

Alpha Living Okayama Nishigawa Ryokudokoen

9

0

1

0

-

7

0

18

Alpha Living Okayama Korakuen

8

0

1

0

2

4

0

14

Alpha Living Takamatsu Ekimae

7

0

1

0

-

6

0

15

Alpha Living Takamatsu Hyakkenmachi

8

0

1

0

-

6

0

15

Sompo no ie Nishitanabeekimae

7

0

1

0

0

5

0

18

Irise Komae Bettei

1

0

0

0

-

1

0

7

298

13

49

1

30

202

1

608

Sawayaka Riverside Kurinoki

Total

Not disclosed

705(Note 1) “Property-related operating revenue” is not disclosed property by property because consent for disclosure has not been obtained from tenants.
(Note 2) NOI = Property-related operating revenue − Property-related operating expenses + Depreciation
This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

49

Balance Sheets for 10th Fiscal Period Ended April 2019
The 9th FP
ActualAmount(million yen)
Current Assets
Cash and deposits

Ratio

1,876

8.9%

1,404

Amount(million yen)The 9th FP
ActualAmount(million yen)

Ratio

1,601

Current Liabilities

7.6%

3,093

The 10th FP
Actual

Ratio

14.7%

Amount(million yen)

3,575

1,130

Operating account payables

31

21

2,900

3,400

447

453

Other current assets

24

17

Accounts payable ‒ other69

60

Advances received

85

86

Other current liabilities

6

6

Buildings and others(including trust property)
Land and others(including trust property)
Other tangible fixed assets

Intangible fixed assets

91.1%

19,418

92.4%

19,11890.7%

19,34992.1%

11,168

11,115

7,949

8,233

1

1

41

0.2%

41

Leasehold rights and leasehold
rights in trust

40

40

Other intangible fixed assets

00Investments and other assets

32

Leasehold and security
deposits paid in trust

Long-term prepaid
expenses
Other assets
Total Assets

0.2%

27

10

10

22

17

0

0

21,068 100.0%

Fixed Liabilities

0.2%

0.1%

7,630

36.2%

7,150

Long-term loans payable

6,900

6,400

Tenant leasehold and security
deposits

730

750

Ratio

17.0%

34.0%

10,72350.9%

10,72551.0%

Unitholders’ equity (net)

10,101

47.9%

10,03647.8%

Unitholders’ equity

10,504

10,504

Deduction from unitholders’ equity

-402

-467

Unappropriated retained earnings

243

1.2%

256

1.2%

10,34449.1%

10,29349.0%

Total Liabilities

Net Assets

Tangible fixed assets

19,192

Liabilities

Cash and deposits in trust

Current portion of long-termloans payable

Fixed Assets

AssetsThe 10th FP
ActualTotal Net Assets
Total Liabilities and Net Assets

21,068 100.0%

21,019 100.0%

21,019 100.0%

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

50

Status of Unitholders as of the end of April 2019
Major unitholders (top 10)

Ownership ratio of investment units by category
Category of unitholders

Number of units Number of units Increase/decrea
Ratio at theat the end of
at the end of
se from theend of 10th FP*
9th FP
10th FPprevious FP

No.

Name

Number of units Increase/decrea Number of units
Ratio at the end
se from theheld at the end ofheld at the end ofof 10th FP*
9th FP
10th
FP
previous FP

Individual/others

34,447

34,735288

46.54%

1

Daiwa Securities Group Inc.

7,600

-

7,600

10.18%

Financial institutions

18,632

17,721- 911

23.74%

2

The Master Trust Bank of Japan,
Ltd.(Investment Trust Account)

6,928

- 419

6,509

8.72%

Major city banks

-

-

-

0.00%

3

Japan Trustee Services Bank Ltd.
(Trust Investment Trust Account)

4,631

- 240

4,391

5.88%

Regional banks

493

620

127

0.83%

4

SCB SG S/A SCB THAILAND AC FOR CIMBPRINCIPAL PROPERTY JP000294300545

1,702

1,299

3,001

4.02%

Trust banks

15,204

13,997- 1,20718.75%

5

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

2,291

- 108

2,183

2.93%

Life insurancecompanies

286

286

-

0.38%

6

NOTHERN TRST CO.(AVFC) SUB A/C
USLNON-TRESTY

0

1,800

1,800

2.41%

Non-life insurancecompanies

-

-

-

0.00%

7

Daiwa Real Estate AssetManagement Co. Ltd.

1,000

-

1,000

1.34%

Other financial
institutions

2,649

2,818

169

3.78%

8

Fukui Medical Credit Association

945

-

945

1.27%

Other domestic companies

12,22812,26537

16.43%

9

UENOYA BUILDING Co. Ltd.

903

37

940

1.26%

Foreigners

8,281

8,695

414

11.65%

10

Trust & Custody Services Bank Ltd.
(Trust Investment Trust Account)

1,033

- 134

899

1.20%

Securities companies

1,044

1,216

172

1.63%

27,033

2,235

29,26839.22%

Total

74,632

74,632-100.00%

Total*Rounded to two decimal places.

*Rounded to two decimal places.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

51

IR Activities / Indices that include NHI
Held IR in regions of the country
Month / Year

Name of IR Event

Location

June 2018

Financial results briefing for institutional investors (8th FP)

Tokyo

July 2018

Briefing session on asset management for individual investors (8th FP)

Tokyo

July 2018

Seminar for individual investors (sponsored by a security company)

Tokyo

September 2018

J-REIT Fair for individual investors 2018 (cosponsored by ARES and TSE)

Tokyo

October 2018

Special seminar for healthcare facility operators

SapporoDecember 2018

Financial results briefing for institutional investors (9th FP)

Tokyo

January 2019

Briefing session on asset management for individual investors (9th FP)

Tokyo

February 2019

Seminar for individual investors (sponsored by a security company)

NagoyaFebruary 2019

TSE IR Festa 2019

Tokyo

March 2019

Special seminar for healthcare facility operators

Okayama

J-REIT Fair for individual investors 2018 (cosponsored by ARES and TSE)

Indices that include NHIMonth / Year

Name of index

September2015 disclosed
Thomson
Reuters
GPR/ APREA
Composite
Index Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
This document
is not material
in compliancewith theFinancial
Instruments
and Exchange
NHI advises readers to make investment decisions at their own judgment.

52
52

IR Schedule

IR schedule

・Fiscal period ends: April and October ・Securities code: 3308
Nov.

Announcement offinancial results

Dec.

●

Jan.

Feb.

Mar.

Announcement of financial results
for fiscal period ended October

Payout of
distributions●

Commencement of payout of distributions
for fiscal period ended OctoberAsset management
report●Sending of asset management reportfor fiscal period ended OctoberMay
Announcement offinancial results

June

●

Apr.

July

Aug.

Sept.

End offiscal period

Oct.

Announcement of financial results
for fiscal period ended April

Payout of
distributions●

Commencement of payout of distributions
for fiscal period ended April

Asset management
report●Sending of asset management reportfor fiscal period ended April

End offiscal period

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

53

Guide to Website (http://www.nippon-healthcare.co.jp/en/)
Provides details on real estate under management, IR mail delivery service, etc.
Securities code

3308

・What are healthcare facilities?
・What are healthcare REITs?
・Guide to portfolio
・Unitholder benefits
・Introduction of operators

 IR mail delivery service

registration form
Service delivering the latest news releases,
occupancy rates, etc.

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

54

Framework of stable cash flow

Operator’s Income

REIT’sIncomeDistribution
to Investors

Fixed rent

Dividends

Advance fees
Residents
Monthly charges,etc.

Municipalities, etc.

Nursing care service
operators

Long-term leaseagreements

Nippon Healthcare
Investment
Corporation

Investors
投資主
Investment

Nursing care fees

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

55

Support and Independence<Same boat investment in NHI by the Daiwa
Securities Group Inc.>
Holding 10.2% of NHI’s investment units issued< Pipeline support
agreement > Provide information on realestate, etc.

Asset
Management

Asset Management Company<Conclusion ofsponsor support
agreement>
Cooperation insecurement of
personnel
Provision of
information onproperties, etc.

Operator

Investment Corporation

Charm Care Corporation
Super Court Co., Ltd.
Sompo Care Inc.
Sawayaka Club Co., Ltd.
Nichiigakkan Company
Cedar Co., Ltd.
Nihon Kaigo Iryo Center Co., Ltd.
Wisnet Co., Ltd.
Silver Heights Sapporo Co., Ltd.
Anabuki Medical Care Inc.
HITOWA Care Services Co., Ltd.

<Conclusion of advisory agreement>
Provision of information on
management/operation of healthcare facilities
Provision of advisory work such as assisting andsupporting negotiations with operators
Provision of advice on market research/analysis
concerning assets under investment target<Invested 100% by Daiwa Securities Group Inc.>

SponsorAdvisorSupport56
This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

56

Overview of Asset Management Company (1)Corporate Profile

Directors
As of June 1, 2019

Corporate nameDaiwa Real Estate Asset Management Co. Ltd.

Address

6-2-1 Ginza, Chuo-ku, Tokyo

Established

October 21, 2004

Paid-in capital

200 million yen

Representative Director

Toshio Fukushima

Board of Directors

9
Executive directors: 5 / Executive auditors: 1
Non-executive directors: 1 / Non-executive auditors: 2

No. of Employees

109 (excluding dispatched employees)

Registered financial
instruments firm

Registration No. 355 (Financial Instruments),
Director-General, Kanto Local Finance Bureau (Kinsho)

Building lots andbuildings transaction
business license

As of June 1, 2019
Chairman of the Board
President and Representative
Director
Vice President andRepresentative Director
Vice President andRepresentative Director

Akira Yamanouchi
Toshio Fukushima
Yuji Shinotsuka
Yoshiki Nishigaki

Director

Hajime Imbe

Director (non-executive)

Keiichi Ishikawa

AuditorTamaki Shibayama

Auditor (non-executive)

Sachiko Hanaoka

Auditor (non-executive)

Shinji Kiso

REITs which entrust the asset management to
the Asset Management Company
As of June 1, 2019

Daiwa Office Investment
Corporation

Listed REIT focusing on office buildings
Asset size: approximately 460.0 billion yen(59 properties)(*)

License No. (3) 83920, Governor of TokyoJapan Rental Housing
Investments Inc.

Listed REIT focusing on residential properties
Asset size: approximately 220.8 billion yen(188 properties)

Discretionary agent forreal estate transaction
approval

License No. 34, Minister of Land, Infrastructure,
Transportation and Tourism

Daiwa Residential Private
Investment Corporation

Private REIT focusing on residential properties
Asset size: approximately 121.0 billion yen(80 properties)

Association membership

Member of The Investment Trusts Association, Japan
Member of Japan Investment Advisers Association
Member of Type II Financial Instruments Firms
Association

Nippon Healthcare Investment
Corporation

Jap an’s first listed REIT focusing on healthcare facilities
Asset size: approximately 19.7 billion yen (23 properties)

Daiwa Hotel Private Investment Private REIT focusing on hotels
Asset size: approximately 29.8 billion yen (7 properties)
Corporation（*） excluding silent partnership equity interest

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

57

Overview of Asset Management Company (2)Organization of Asset Management Company

Shareholdersʻ
Meeting
Corporate
Auditors
Board ofDirectors

Compliance
Committee
Investment
Committee

Compliance
OfficerPresident andRepresentative
Director

Acquisitions andAsset Management
Division

Acquisition
Debt.

Origination
Debt.

DOI Asset
Management
Dept.

JRH Asset
Management
Debt.

Internal Control
OfficePrivate Fund
Division
Asset
Management
Debt.

Investment
Planning Dept.

Construction
Management
Dept.

Private FundManagement
Debt.

Corporate
Division
Investment
Corporation
Planning Dept.

Finance
Debt.

Administration
Debt.

DOI
Investment
Team

AM
Team

DRP
Management
Team

FinanceTeam

JRH
Investment
Team

Portfolio
SystemTeam

NHI
Management
Team

Accounting
Team

DHP
Management
Team

Management
Team

DRP
Investment
Team

Corporate
Planning Debt.

Compliance &Risk Management
Debt.

NHI
Investment
Team
DHP
Investment
Team

This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

58This document is not material disclosed in compliance with the Financial Instruments and Exchange Act or any regulation of similar nature, nor is it intended for the purposes of solicitation.
NHI advises readers to make investment decisions at their own judgment.

59
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