As of December 21, 2015

Hopeful future
for Japan
Nippon Healthcare
Investment Corporation
Presentation Material for the
3rd Fiscal Period Ended October 2015

Contents
Disclaimer

Section 4

Characteristics of Nippon Healthcare
Investment Corporation

Portfolio Analysis
3

Section 1
Topics and Highlights
Topics and Highlights

5

Section 2

Portfolio List (as of November 24, 2015)

22

Status of Portfolio (after new property acquisitions)23

Portfolio Resident Attributes(after new property acquisitions)24

Market Size by Segment

25

Section 5

Financial Results for the 3rd Fiscal Period

Financial Status

Operating Results for 3rd Fiscal Period

9Forecast of Operating Results for 4th Fiscal Period and5th Fiscal Period

10

Section 3External Growth
Change in Asset Size

12

Properties Acquired in 4th FP (ending April 2016)13

Properties Acquired in 3rd FP (ended October 2015)15

Sourcing Route17

Portfolio Map (as of November 24, 2015)18

Introduction of Operators

19

Development of Quality Portfolio through Careful Selection
and Continuous Evaluation of Operators

20

Status of Interest-Bearing Liabilities(end of 3rd Fiscal Period)

27

Policy on Distributions in Excess of Earnings /List of Indices including NHI

28

Overview of the Unitholder Benefits Program・・・・・・・・・・・・

29

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

Characteristics of Nippon Healthcare Investment Corporation
1 Investment in social infrastructure to contribute to society

Nippon Healthcare Investment Corporation (NHI) will contribute to society by specializing in investment in healthcare facilities,
which are part of the social infrastructure.

2 Growth through investment in the growing senior market
Social demand for healthcare facilities is expected to grow in the medium to long term through further aging of the population.



NHI aims to expand assets under management in the medium to long term using our expertise on healthcare, extensive networkand fund raising capabilities.

3 Stable cash flowTo stabilize cash flow, NHI will sign long-term fixed-rent lease agreements with operators of healthcare facilities.

To stabilize management, NHI will consider business collaborations and mutual management backup with carefully selected
operators.

4 Unitholder return policy utilizing asset characteristics


NHI will implement unitholder returns through distributions in excess of earnings (refund of investment) utilizing the asset
characteristic of a high rate of depreciation.



NHI will consider unitholder benefits utilizing the characteristics of healthcare facilities.

5 Substantial support system and strong independence

NHI will develop the support system that brings together the comprehensive strengths of Daiwa Securities Group Inc. (sponsor),an expert finance company, and AIP Healthcare Japan GK (advisor), an expert healthcare company.



NHI’s asset management company is able to establish cooperative relations with a wide range of operators as it is very
independent with no participation of operator group.

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

Topics and Highlights

Topics and Highlights█ Public offering/secondary offering in October 2015


NHI’s first public offering/secondary offering
Number of investment units offered: 13,832 units, Number of investment units offered through secondaryoffering: 18,500 units, Issue price: 196,570 yen, Paid-in amount: 189,440 yen, Total paid-in amount: 2,620
million yenAcquisition of Alpha Living Okayama Nishigawa Ryokudokoen, Alpha Living Okayama Korakuen, Alpha Living
Takamatsu Ekimae and Alpha Living Takamatsu Hyakkenmachi for a total of 2,550 million yen.



21 properties with a total amount of assets (total acquisition price) of 18,608 million yen after the public offering<Alpha Living
OkayamaNishigawa
Ryokudokoen>
Acquisition price:
730 million yen<Alpha Living
Okayama Korakuen>
Acquisition price:
610 million yen<Alpha Living
Takamatsu
Ekimae>Acquisition price:
605 million yen<Alpha Living
Takamatsu
Hyakkenmachi>
Acquisition price:
605 million 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.

5Topics and Highlights█ Properties acquired in the 3rd fiscal period
June 2015: Minna-no-ie Omiya Yoshinocho (Acquisition price: 740 million yen)
Minna-no-ie Chuo-ku En'nami (Acquisition price: 838 million yen)
 October 2015: Silver Heights Hitsujigaoka No.3 (Acquisition price: 1,200 million yen)

<Minna-no-ie
Omiya Yoshinocho>
Acquisition price:
740 million yen<Minna-no-ie
Chuo-ku En'nami>(Acquisition price:
838 million yen)

<Silver Heights
Hitsujigaoka No.3>(Acquisition price:
1,200 million yen)

█ Financial status
 LTV (based on total assets) Period-end average remaining period Ratio of fixed interest rates

End of the 3rd FP: 49.8% (End of the 2nd FP: 42.3%) After the public offering (plan): 44.7%
End of the 3rd FP: 3.5 years (End of the 2nd FP: 3.7 years)
End of the 3rd FP: 100.0% (End of the 2nd FP: 100%)End of the 2nd FP(April 2015)

End of the 3rd FP(October 2015)

After the public
offering

LTV

42.3%

49.8%

44.7%

NAV per unit

174,096 yen

190,907 yen

191,175 yen(Note 1) LTV after the public offering (plan) = (Total interest-bearing liabilities at the end of the 3rd FP + New borrowings in the 4th FP – Short-term borrowings planned to be
repaid with part of proceeds from the public offering) / (Total assets at the end of the 3rd FP + Total paid-in amount of the public offering + New borrowings in the 4th
FP - Short-term borrowings planned to be repaid with part of proceeds from the public offering)(Note 2) NAV after the public offering (plan) = {( Unitholders’ equity at the end of the 3rd FP + Total paid-in amount of the public offering - Expected amount of refund ofinvestment from distributions in excess of earnings in the 3rd FP) + (Total appraisal value at the end of the 3rd FP + Appraisal value of properties acquired in the 4th
FP at the time of the acquisition) – (Total period-end book value at the end of the 3rd FP + Total acquisition price of properties acquired in the 4th FP) } / Number ofinvestment units issued after the public offering (74,632 units)

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

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.

7Section 2

Financial Results
for the 3rd Fiscal Period

Operating Results for 3rd Fiscal Period
Actual results for 3rd Fiscal Period

Number of properties ow ned 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
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 of earnings)
Distribution per unit in excess of earnings(Reference)
Depreciation per unit (yen)Ratio of distribution in excess of earnings to depreciation per unit

(unit: million yen)
2nd FP
3rd FP(ended Apr. 2015) (ended Oct. 2015)
Difference(results)(results)
14
17
3
507
555
47
261
330
69
28

56

28

137
245
0
83
14
162
161

151
224
0
23
18
201
200

14
-21
0
-59
3
38
38

60,80060,800

-

3,471

4,067

596

2,661
810

3,299
768

638
-42

2,263
35.8%

2,496
30.8%

Increase factor
Revenue (rents and common area fees) from 3
properties acquired during the fiscal period（+43 million yen）
Increase factor
Tax and public dues
Depreciation
Other commission fees
Asset management fees
Advertising expense
Repair cost(+18 million yen)(+14 million yen)(+ 9 million yen)(+ 8 million yen)(+ 7 million yen)(+ 6 million yen)

Decrease factor
Investment unit issuance cost（-42 million yen）

Comparison of forecast and actual results for 3rd Fiscal Period(unit: million yen)

3rd FP(ended Oct. 2015)
3rd FP(forecast)(ended Oct. 2015)(Disclosed in June
(results)
2015)
16
17
551
555
333
330
193
200

Difference

Increase factor
Revenue (rents and common area fees) from 1
property acquired during the fiscal period(+ 3 million yen)

Increase factor
Number of properties ow ned at end of the fiscal period
1
Advertising expense(+ 5 million yen)
Operating revenue
3
Repair cost(+ 3 million yen)
Operating expenses-2
Decrease factor
Net income
7
Other commission fees(- 7 million yen)
Distribution per unit (yen)Tax and public dues(- 2 million yen)
3,950
4,067
117
(including distribution in excess of earnings)
Distribution per unit
3,182
3,299
117
(excluding distribution in excess of earnings)
ThisDistribution
document per
is notmaterial
disclosedincompliancewiththeFinancial
Instruments
andExchangeActorany
regulationof similar
nature, nor is it intended for the purposes of solicitation.
unit (in excess of earnings)
768
768
NHI advises readers to make investment decisions at their own judgment.

9Forecast of Operating Results for 4th Fiscal Period and 5th Fiscal Period
Forecast of the 4th fiscal period(unit: million yen)
4th FP(ending Apr. 2016)(forecast)Difference fromthe 3rd FP

21

4

Operating revenue

667

111

Operating expenses

388

58

Property-related expenses (excluding depreciation)

72

16

Depreciation

186

34

Operating income

Number of properties owned at end of the fiscal period

278

53

Non-operating revenue--0

Non-operating expense

34

10Interest expense

23

5

Ordinary income

244

42

Net income

243

42

Forecast of the 5th fiscal period(unit: million yen)
5th FP(ending Oct. 2016)(forecast)0

Operating revenue

676

9Operating expenses

402

13

Property-related expenses (excluding depreciation)

77

4

Depreciation

186

0

Operating income

274

-3

Non-operating revenue--

Non-operating expense30-3Interest expense

23

0

244

0

Ordinary income

Increase factor
Depreciation
Asset management fees
Repair cost
Decrease factor
Other commission fees

( - 4 million yen)

Increase factor
Interest expense
Investment unit issuance cost(+5 million yen)(+3 million yen)

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 of earnings)
Distribution per unit in excess of earnings(+34 million yen)(+ 8 million yen)(+ 5 million yen)

4th FP(ending Apr. 2016)(forecast)Difference fromthe 3rd FP

74,632

13,832

4,060

-7

3,260

-39

800

32

(Reference)
Depreciation per unit (yen)2,499

Ratio of distribution in excess of earnings to depreciation per unit

32.0%

Increase factor
Full-year contribution of revenue (rents and common area fees) from 4
properties acquired during the previous fiscal period(+ 9 million yen)

Difference fromthe 4th FP

21

Number of properties owned at end of the fiscal period

Increase factor
Revenue (rents and common area fees) from 4 properties acquired
during the fiscal period(+65 million yen)
Full-year contribution of revenue (rents and common area fees) from3 properties acquired during the previous fiscal period(+46 million yen)

Increase factor
Tax and public dues
Administrative agency remuneration
Decrease factor
Repair cost(+ 9 million yen)(+ 4 million yen)(- 5 million yen )5th FP(ending Oct. 2016)(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 of earnings)
Distribution per unit in excess of earnings(Reference)
Depreciation per unit (yen)Difference
from the 4th FP

74,632

-

4,060

-

3,260

-

800

-

2,500

Net income
243
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.
Ratio of distribution in excess of earnings to depreciation per unit
32.0%
NHI advises readers to make investment decisions at their own judgment.

10Section 3External GrowthChange in Asset Size
Continuous external growth through acquisition of carefully selected properties
Aim for further
expansion of
the asset size

(million yen)

25,000+2,550 million yen
20,00015,000+2,778 million yen
Acquisition of 18,608
4 properties
Acquisition of
3 properties

16,058

40.1% increase

13,28010,000Total of14 properties

Total of17 properties

Total of21 properties

5,000

0
Listing

End of the 3rd FP(ended October 2015)

As of November 24, 2015

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

Properties Acquired in 4th FP (ending April 2016)*”Relatively new” buildings refer to buildings completed within the past 5 years

Alpha Living Okayama Nishigawa Ryokudokoen

Alpha Living Okayama Korakuen

Acquisition price: 730 million yen (Acquisition date: November 24, 2015)
Operator: Anabuki Medical Care Inc.
Relatively
new
Facility type: Residential type fee-based homes for the elderly

Acquisition price: 610 million yen (Acquisition date: November 24, 2015)
Operator: Anabuki Medical Care Inc.
Facility type: Residential type fee-based homes for the elderly
Alpha Living
Okayama Korakuen

Alpha Living
Okayama Korakuen

Alpha Living Okayama
Nishigawa Ryokudokoen

Location

6-2 Chuo-cho, Kita-ku,
Okayama-shi, Okayama

Area
Structure/
Floors533.05 m
RC/7F

2

Alpha Living Okayama
Nishigawa Ryokudokoen

Appraisal value

760 million yen

Total floor area

2,124.16 m

2Construction
completion

August 2014
(Note) As of July 31, 2015



Site Features

The Property is located close to Okayama Station and the prefectural
government’s office of Okayama, which are in the center of Okayama City.
Trees are planted effectively along the nearby Nishigawa River, creating atasteful community environment with a park on the north side of the Property.



Locational Features

Within 3km of the Property (Kita-ku, Naka-ku), the population of the elderly
people aged 75 years or over is 50.2 thousand accounting for 11.5% of thetotal population. In Okayama City, the number of the elderly people aged 75
years or over is expected to be 117.4 thousand in year 2035 from the 81.2
thousand in 2015.
Property Features

Location

1-11-4, Hama, Naka-ku,
Okayama-shi, Okayama

Appraisal valueArea

2,095.80 m2

Total floor area

(1) 1,988.80 m2(2) 131.64 m2

Structure/
Floors(1) RC/4F with tile roofing(2) Steel-framed with galvanizedalloy steel sheet roofing/1F

Construction
completion(1) May 1988
(2) December 2014

(Note)The Property completed in year 2014 is relatively new and provides privaterooms of around 18 m2 which is a standard room size for facilities withnursing care. The rooms are equipped with sink and toilet.

646 million yen(Note)(Note) As of July 31, 2015

 Site Features
The Property is closely located to the east side of Asahigawa River, which runs north tosouth in Okayama City. On its south, across an arterial road, is Korakuen, which is oneof the three great gardens of Japan and Okayama castle; and quiet residential areas
spread on the west and southwest sides.
 Locational Features
Within 3km of the Property (Kita-ku, Naka-ku), the population of the elderly people
aged 75 years or over is 50.2 thousand accounting for 11.5% of the total population. In
Okayama City, the number of the elderly people aged 75 years or over is expected tobe 117.4 thousand in year 2035 from the 81.2 thousand in 2015.
 Property Features
The Property which opened in 2015 was converted from a recreation property owned
by a local major company in Okayama City. It presents an image of high-quality fromthe traditional Japanese-style garden with a pond within the premises, etc. The
Property provides private rooms of around 18 m2 to 25 m2 which is a standard room
size for facilities with nursing care. The rooms are equipped with sink and toilet.

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

Properties Acquired in 4th FP (ending April 2016)
Alpha Living Takamatsu Ekimae
Acquisition price: 605 million yen (Acquisition date: November 24, 2015)
Operator: Anabuki Medical Care Inc.
Relatively
new
Facility type: Residential type fee-based homes for the elderly

Alpha Living Takamatsu Hyakkenmachi
Acquisition price: 605 million (Acquisition date: November 24, 2015)
Operator: Anabuki Medical Care Inc.
Facility type: Elderly housing with supportive services

Alpha Living
Takamatsu Ekimae

Alpha Living
Takamatsu Ekimae

Alpha Living Takamatsu
Hyakkenmachi

Alpha Living Takamatsu
Hyakkenmachi

Location

1-6, Nishiuchi-machi,
Takamatsu-shi, Kagawa

Appraisal value

622 million yen (Note)

Location

8-11, Hyakken-machi,
Takamatsu-shi, Kagawa

Appraisal value

609 million yen (Note)Area

502.63 m2

Total floor area

1,848.06 m2

Area

466.58 m2

Total floor area

1,922.18 m2

Structure/Floors

RC/6F

Construction
completion

June 2014

Structure/Floors

RC/10F

Construction
completion

June 2010



Site Features(Note) As of July 31, 2015

The Property is located a five-minute walk from Takamatsu Statin on the JR
Yosan Line, enjoying the transport convenience. The area is also close to acommercial district with local shopping streets, offering daily convenience.


Locational Features
In Takamatsu City where the Property is located, the population of the elderly
people aged 75 years or over is 52 thousand and accounting for 12.1% of thetotal population. The number of the elderly people aged 75 years or over is
expected to be 77.1 thousand in year 2035.

Property Features
The residential-type Property for the elderly completed in year 2014 isrelatively new and provides private rooms of around 18 m2 which is astandard room size for facilities with nursing care. The rooms are equippedwith sink and toilet. There is also a dental clinic on the first floor.

 Site Features(Note) As of July 31, 2015

The Property is located a four-minute walk to Kataharamachi Station on Kotohira Lineof Takamatsu-Kotohira Electric Railroad and is also within walking distance toTakamatsu Station on the JR Yosan Line. It is fairly close to an area where
Takamatsu Mitsukoshi department store and other brand shops are located. There isalso a shopping arcade on the west side, boasting excellent living convenience.
 Locational Features

In Takamatsu City where the Property is located, the population of the elderly people
aged 75 years or over is 52 thousand and accounting for 12.1% of the total
population. The number of the elderly people aged 75 years or over is expected to be
77.1 thousand in year 2035.
 Property Features

The Property which is an elderly housing with supportive services provides privaterooms of around 27 m2 which is larger than the standard size for rooms designed forindependent elderly people. The rooms are equipped with mini-kitchen, bathroom,
sink and toilet.

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

Properties Acquired in 3rd FP (ended October 2015)
Minna-no-ie Omiya Yoshinocho
Acquisition price:740 million yen (acquisition date :June 1, 2015)
Operator: Wisnet
Facility type: Fee-based homes for the elderly with nursing care

Minna-no-ie Chuo-ku En’nami
Relatively
new

Location

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

Appraisal value

755 million yen (Note)Area

877.00㎡

Total floor area

RC/4F

Construction
completion

Structure/
FloorsLocation

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

Appraisal value

859 million yen (Note)

1,747.89㎡

Area

1,271.65㎡

Total floor area

1,917.50㎡

April 2012

Structure/
Floors

RC/3F

Construction
completion

February 2014

(Note) As of April 1, 2015

 Site Features

The Property is located approximately 2.5 km from Miyahara Station on JR
Takasaki Line. The area boasts excellent environment surrounded by a numberof commercial facilities despite itself being a quiet residential area.
 Locational Features

The population in commerce areas within a 3km radius of the Property isapproximately 4,000. Changes in the elderly population have been slightly mild
than that of the whole Saitama prefecture, though it is projected to increase byapproximately 1.7 times of the current population by year 2040.
 Property Features

Acquisition price:838 million yen (acquisition date : June 1, 2015)
Operator: Wisnet
Relatively
new
Facility type: Fee-based homes for the elderly with nursing care

The room areas of the Property are all 18 m2, which are designed for single use
and the rooms are equipped with sink and toilet.

(Note) As of April 1, 2015

 Site Features
The Property is located approximately 2.4 km (road distance) from Kitayono
Station on JR Saikyo Line. It stands in a quiet residential area and has excellent
accessibility to Omiya Station, the largest terminal station in Saitama prefecture.
 Locational Features
The population in commerce areas within a 3km radius of the Property isapproximately little over 5,000. Changes in the elderly population have beenslightly milder than that of the whole Saitama prefecture, though it is projected toincrease by approximately 1.7 times of the current population by year 2040.
 Property Features
The room areas of the Property are all 18 m2, which are designed for single use
and the rooms are equipped with sink and toilet.

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

Properties Acquired in 3rd FP (ended October 2015)
Silver Heights Hitsujigaoka No.3
Acquisition price: 1,200 million yen (Acquisition date: October 15, 2015)
Operator: Silver Heights Sapporo Co, Ltd.
Facility type: Fee-based homes for the elderly with nursing care

Silver Heights
Hitsujigaoka No.3

Location
Area
Structure/
Floors15-4-38, Tsukisamu Higashi
Shijo, Toyohira-ku, Sapporo-shi,
Hokkaido
8,578.56 m2
RC/3F

 Site Features

Appraisal value

1,310 million yen (Note)

Total floor area
Construction
completion

7,267.56 m2
April 2003
(Note) As of July 31, 2015

The Property is located approximately a 15-munite walk from Nango
Juhatchome Station on the Tozai Line of the Sapporo Municipal Subway. The
Property faces Mukogaoka-dori on its southeast side, which serves as acommunity road for daily life, and the whole block is an orderly developed
quiet area.
 Locational Features

In the commercial area of the Property, the proportion of elderly people aged
75 years or over is 10.7% which falls below the national average (12.2%) andthat in Sapporo (11.0%). In the future, the aging rate for this area is expected
to progress rapidly.
 Property Features
The most common room area size of the Property is 21 m2 which is a typicalsize for rooms with nursing care. The public space has a kiosk, a courtyardwith many plants, a beauty parlor/barber and a dental clinic, etc. Although it isa property with nursing care, it has as many service facilities as the properties
for independent elderly people do.
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

Sourcing Route
Status of property acquisition by sourcing route
Properties acquired
before listing
14 properties/
13,280 million yen

AssetManagement
Company’s
uniquenetwork

Properties acquired in the 4th FP
4 properties/2,550 million yen
Alpha Living Okayama
Nishigawa Ryokudokoen
Acquisition price:
730 million yen

Silver Heights
Hitsujigaoka No.3
Acquisition price:
1,200 million yen

・ M&A cases for business succession
・ Needs for securing liquidity on hand

Sale & lease backOff-balancing in linewith M&A

Properties acquired in the 3rd FP
3 properties/2,778 million yen

Alpha Living Okayama
Korakuen
Acquisition price:
610 million yen
Alpha Living Takamatsu
EkimaeAcquisition price:
605 million yen

5 properties/
3,750
million yen

Alpha Living Takamatsu
Hyakkenmachi
Acquisition price:
605 million yen

Change of owners

・ Sales cases by developer groups whichhave operators as affiliates
・ Needs to focus entirely on facility
operations

Sponsorgroup

Advisor14 properties/
13,280 million yen

Minna-no-ie Omiya
Yoshinocho
Acquisition price: 740
million yen
Minna-no-ie Chuo-ku
En'namiAcquisition price: 838
million yen
・ Properties introduced by the sponsor
group
・ Needs for asset management fromowners2 properties/
1,578
million yen

14 properties/
13,280
million 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.

17

Portfolio Map (as of November 24, 2015)
Owned properties are diversified over
13 prefectures
RegionTargetIncorporation
incorporation
ratio
ratio

Definition

Tokyo area: Tokyo, Kanagawa, Chiba,
Three major Saitama
metropolitan The Chukyo area: Aichi, Mie, Gifu
The Kinki area: Osaka, Kyoto, Hyogo,
areasNara, Shiga

50% or
more

59.6%

Core
citiesCore City Areas with populations of
200,000 or more. (excluding Three major
metropolitan areas)

50% or
less

40.4%

Other

Core City Areas with populations under
200,000 (excluding Three major
metropolitan areas and Core cities)

10% orless

0.0%

17 Silver Heights Hitsujigaoka No.3

9 Sawayaka Hinodekan
10

Sawayaka Riverside
Kurinoki

8 Sawayaka Heart Life Nishikyogoku
12 Nichii Care Center Fukushima Omori

14 Verger Hirakata
19 Alpha Living Okayama Korakuen
18

Alpha Living Okayama Nishigawa Ryokudokoen

15 Minna-no-ie Omiya Yoshinocho
16 Minna-no-ie Chuo-ku En’nami

11 Sawayaka Obatake Sanbankan
6 Sawayaka Kaikyokan

5 Rest Villa Kinugasayama Koen

7 Sawayaka Meisuikan

4Rest Villa Sagamihara Chuo

13 La’nassica Arakogawa
2 Super Court JR Nara-Ekimae
1 Charm Sweet Ryokuchi Koen
21 Alpha Living Takamatsu Hyakkenmachi
3 Rest Villa Hiroshima Hikarigaoka

20 Alpha Living Takamatsu Ekimae(Note) Red numbers refer to Three major metropolitan areas
and blue numbers to Core cities.
Facility names with orange background are fee-based
homes for the elderly with nursing care, those withblue background are residential-type fee-based homes
for the elderly, and those with yellow-green are elderly
housing with supportive services.

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.

18

Introduction of Operators(*) Operators are listed in order ofthe number of facilities they manage

Highly reliable operators
Number ofmanagedfacilities (Note 1)

Number ofoperatingrooms (Note 1)

Nichii Gakkan

402

12,573

August1973

Listed on the first section of the Tokyo
Stock Exchange

Wisnet123

3,355

January
1998－

Sompo Care Next

115

8,626

November
1992

Subsidiary of Sompo Japan Nipponkoa
Holdings, Inc., a company listed on the firstsection of the Tokyo Stock Exchange

Silver Heights Sapporo
6.4%
Cedar 6.9%

62

3,796

December
2004

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

Super Court 8.4%

44

2,949

May
1995

－
Listed on JASDAQ on the Tokyo Stock
Exchange

Operator(Note 2)

Sawayaka ClubSuper Court

Established

Attributes

Diversification of Operators

Cedar

36

1,872

April
1981

Charm Care
Corporation

28

1,985

August1984

Listed on JASDAQ on the Tokyo Stock
Exchange－
Subsidiary of Anabuki Kosan Inc., acompany listed on the first section of theTokyo Stock Exchange

Nihon Kaigo Iryo
Center27

1,088

October
1997

Anabuki Medical
Care

23

1,009

June
2009

Silver Heights
Sapporo3

321

December
1961－(*) Operators in order of percentage

Nichii Gakkan 1.4%
Nihon Kaigo Iryo Center 5.1%

Wisnet 8.5%
Charm Care
Corporation 10.5%

Sompo Care
Next 21.3%

Sawayaka
Club 17.7%

AnabukiMedical Care 13.7%

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

40% or less
(Note) The total acquisition price by operator as apercentage of the total acquisition price isindicated, rounded to one decimal place.

(Note 1) 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 September 30, 2015).
(Note 2) Watami Co., Ltd. transferred all of issued shares of Watami no Kaigo Co., Ltd. to Sompo Japan Nipponkoa Holdings, Inc. on December 1, 2015. The business name of Watami no Kaigo
Co., Ltd. was changed to Sompo Care Next Inc. on the same day. The ratios in the three pie charts on the above right are calculated based on total acquisition prices, and 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.

19

Development of Quality Portfolio through Careful Selection
and Continuous Evaluation of Operators
At the time of new acquisition

At the time of continuous evaluation

Careful selection of operators

Continuous evaluation

Conducting due diligence utilizing the screening know-how of financial institutions

Conducting the same evaluation as at the time of acquisition even after acquisition

 Conduct due diligence utilizing the screening know-how held by the sponsor group,
which is a financial institution, in order to confirm continuity and superiority ofoperators’ operations(Note)

NHI’s Board of Directors

Asset Management
Company’s Board of Directors

Compliance Committee

Investment Committee

Compliance Officer

Acquisition Department*Flow of decision-making through to property acquisition

 Three members are placed in the Healthcare Management Team.
 Regularly conduct the same evaluation as at the time of property
acquisition.
 In addition, visit 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 and conduct examination every fiscal period.
◎Interviewing (Once or more/year)
・Confirming the following items with directors and care providers at
facilities(1) Responses to residents(2) Employees training program(3) Status of governance (including items to check for prevention ofresident mistreatment)(Note) Approval by NHI’s Board of Directors is required for transactions with interested parties.

Common items for evaluation at the time of new acquisition and continuous evaluation
 Quality and variety of services that the operator provides
 Credibility and operational skills of the operator
Quantitative perspective
・Stability, profitability, growth potential and productivity of the operator’s
finances
・Stability, profitability, growth potential of the operator’s healthcare business・The company’s history and the number of years in business(The items are confirmed on the basis that such financial data, etc. beprovided by the operator.)

Qualitative perspective
・The operator’s attitude towards information disclosure
・Degree of importance, etc. of healthcare-related business in the operator
group
・Strength, securement of human resources, etc. at the healthcare facility
・Working environment and employment situation of facility workers
・Compliance system at the operator or at each facility(Documents provided by the operator, results of interviews and research byoutside experts, etc. are used for confirming the items.)

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Section 4

Portfolio Analysis

Portfolio List (as of November 24, 2015)
No.
(Note 1)

Acquisition
period11

1st Fiscal Period

22
33
44
55
66
77
88
99
10
10
11
11
12
12
13
13

Acquisition price(Note 2)
Property nameFacility typeOperator

LocationPrice(millionyen)

NumberAppraisalof rooms
Share of value (million (rooms)
portfolio yen) (Note 3) (Note 4)(%)

Charm Sweet Ryokuchi Koen

Fee-based homes for the elderly with nursing care

Charm Care
Corporation

Toyonaka City, Osaka

1,950

10.5

3,030

128

2nd Fiscal Period

Super Court JR Nara-Ekimae

Residential-type fee-based homes for the elderly

Super Court

Nara City, Nara

1,569

8.4

1,690

155

1st Fiscal Period

Rest Villa Hiroshima Hikarigaoka

Fee-based homes for the elderly with nursing care

960

5.2

1,220

80

1st Fiscal Period

Rest Villa Sagamihara Chuo

Fee-based homes for the elderly with nursing care

Sagamihara City,
Kanagawa

1,170

6.3

1,720

80

Hiroshima City, Hiroshima
Sompo
Care Next

2nd Fiscal Period

Rest Villa Kinugasayama Koen

Fee-based homes for the elderly with nursing care

Yokosuka City, Kanagawa

1,839

9.9

1,990

104

1st Fiscal Period

Sawayaka Kaikyokan

Fee-based homes for the elderly with nursing care

Kitakyushu City, Fukuoka

630

3.4

886

65

1st Fiscal Period

Sawayaka Meisuikan

Fee-based homes for the elderly with nursing care

Kitakyushu City, Fukuoka

590

3.2

802

87

1st Fiscal Period

Sawayaka Heart Life Nishikyogoku

Residential-type fee-based homes for the elderly

Kyoto City, Kyoto

750

4.0

1,210

84

2nd Fiscal Period

Sawayaka Hinodekan

Fee-based homes for the elderly with nursing care

Niigata City, Niigata

773

4.2

923

50

2nd Fiscal Period

Sawayaka Riverside Kurinoki

Residential-type fee-based homes for the elderly

Niigata City, Niigata

266

1.4

318

33

2nd Fiscal Period

Sawayaka Obatake Sanbankan

Residential-type fee-based homes for the elderly

Kitakyushu City, Fukuoka

289

1.6

350

50

1st Fiscal Period

Nichii Care Center Fukushima Omori

Fee-based homes for the elderly with nursing care

Nichii Gakkan

Fukushima City, Fukushima

265

1.4

349

52

2nd Fiscal Period

La’nassica Arakogawa

Fee-based homes for the elderly with nursing care

Cedar

Nagoya City, Aichi

1,279

6.9

1,380

100

14
14

1st Fiscal Period

Verger Hirakata

Residential-type fee-based homes for the elderly

Nihon Kaigo
Iryo Center

Hirakata City, Osaka

950

5.1

1,570

104

15
15

3rd Fiscal Period

Minna-no-ie Omiya Yoshinocho

Fee-based homes for the elderly with nursing care

Saitama City, Saitama

740

4.0

770

33

16
16

3rd Fiscal Period

Minna-no-ie Chuo-ku En’nami

Fee-based homes for the elderly with nursing care

Saitama City, Saitama

838

4.5

882

51

Sapporo City, Hokkaido

1,200

6.4

1,320

109

Okayama City, Okayama

730

3.9

760

53

Okayama City, Okayama

610

3.3

646

45

Takamatsu City, Kagawa

605

3.3

622

43

Takamatsu City, Kagawa

605

3.3

609

52

18,608100.0

23,047

1,558

17
17

3rd Fiscal Period

Silver Heights Hitsujigaoka No.3

Fee-based homes for the elderly with nursing care

Alpha Living Okayama Nishigawa
Residential-type fee-based homes for the elderly* 4th Fiscal Period Ryokudokoen
19
Fiscal Period Alpha Living Okayama Korakuen
Residential-type fee-based homes for the elderly
19
* 4th
20
Alpha
LivingTakamatsu
Ekimae4th
FiscalPeriodResidential-type fee-based homes for the elderly
20 *Alpha Living Takamatsu
21 * 4th Fiscal Period
Elderly housing with supportive services
21
Hyakkenmachi

Sawayaka Club

WisnetSilver Heights
Sapporo18
18

10 operators 21 properties Total

Anabuki Medical
Care<Diversification of facilities>(Note 1) Red numbers refer to Three major metropolitan areas and blue numbers to Core cities. The background colors for Property nameElderly housing withand Facility type columns indicate types of facilities; orange for fee-based homes for the elderly with nursing care, blue forsupportive services
residential-type fee-based homes for the elderly and yellow-green for elderly housing with supportive services. Properties with “*”
3.3%
Residential-type
are properties acquired in the fiscal period ending April 2016.
(Note 2) “Acquisition price” is excluding consumption tax, local consumption tax and the various expenses required for the acquisition.
31.0%“Share of portfolio” is the respective acquisition price expressed as a percentage of the total of the acquisition prices, rounded toWith nursing care
one decimal place. Therefore the total of “Share of portfolio” may be different from the figure indicated in “Total.”
65.7%(Note 3) “Appraisal value” is as of July 31, 2015 for properties acquired in the fiscal period ending April 2016. , and as of October 31, 2015
Fee-based homes
for other properties.
for the elderly 96.7%(Note 4) “Number of rooms” is the figure indicated in the written explanation of important matters pertaining to the fee-based home for theThisdocument
is notmaterial
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.
elderlyprovidedby theoperator.
NHI advises readers to make investment decisions at their own judgment.
(Note) Total acquisition price by type as a percentage of the total

22

Status of Portfolio (after new property acquisitions)Rent-Paying Capacity

1.2x or less
22.3%

More than 2.0x
14.6%

Rent-Paying
Capacity (Note 1)
Average 1.4x
(On appraisal basis:
Average 1.7x)More than 1.2x, but
1.5x or less
28.3%

Proportion of Nursing Care Fee

More than 60%,
but 70% or less
4.2%

Proportion ofMore than 50%,
Nursingbut 60% or less Care Fee(Note 2)
48.1%
Average 50.6%

More than 15%,
but 20% or less
14.5%

50% or less
47.7%

More than 1.5x, but
2.0x or less
34.8%

(Note 1) “Rent-paying capacity” refers to the multiple
obtained by dividing the respective acquired
asset’s most recent EBITDAR by rent.
* EBITDAR＝asset’s operating income+depreciation + rent

Proportion of One-Time
Entrance Fee Amortization Income(Note 2) “Proportion of nursing care fee” refers to the
proportion of the acquired asset’s net sales thatis accounted for by nursing care fee (including
residents’ co-payment portion).

More than
5%, but
15% orless
26.1%

Proportion of
One-Time
Entrance Fee
Amortization
Income(Note 3)
Average 5.7%

5% or less
59.4%

(Note 3) “Proportion of one-time entrance fee
amortization income” refers to the
proportion of the acquired asset’s net
sales that is accounted for by onetime entrance fee amortization income.

(*) Data are based on information on business income and expenditures from October 2014 to September 2015 disclosed by the respective operator. However, data for Nichii Care Center
Fukushima Omori are based on information on business income and expenditures from July 2014 to June 2015; for La’nassica Arakogawa from April 2014 to March 2015; for Silver Heights
Hitsujigaoka No.3 from February 2014 to January 2015; for Alpha Living Okayama Nishigawa Ryokudokoen from October 2014 to June 2015; for Alpha Living Okayama Korakuen fromMarch 2015 to June 2015; and for Alpha Living Takamatsu Ekimae and Alpha Living Takamatsu Hyakkenmachi from July 2014 to June 2015.

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

Portfolio Resident Attributes (after new property acquisitions)
Gender(Note 1)

Age Group(Note 2)

Level of Requiring Nursing Care or Support(Note 3)

Male

28.1%
Female71.9%

75 yearsor over,but under
85 years

1.5%

0.1%

65 years or Under
over, but 65 years

under 75
years 8.3%

Independent

Other

2.8%

Requiring support level 1

Requiring
nursingcare level 585 yearsor over

59.4%

29.5%

5.5%

Requiringsupport level 2

5.1%
Requiring 9.3%
nursing
Requiring
Averagecare level 4
nursing
15.6%
requiredcarelevel 1level of
Requiring
nursingcare level 3

19.1%

nursing care
2.3

22.7%

Requiring nursing
care level 2

21.0%(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 the number ofresidents per age group expressed as apercentage of the total number of residents(except for residents at Rest Villa Sagamihara
Chuo and Rest Villa Kinugasayama Koen as
there is no such information stated in thewritten 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, requiringsupport level 2, requiring nursing care levels 15 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 (from July 1, 2015 to December 4, 2015) provided by each operator.
All percentage figures are 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.

24Market Size by Segment
Market size of fee-based homes for the elderly requiring nursing care is large, 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)

Market size by type of private-sector profit-making facilityGroup homes
Market size: 756.8 billion yen
No. of facilities: 12,643(192,024 rooms)

Fee-based homes for the elderly(for those requiring nursing care)
Market size:
1,333.6 billion yen
No. of facilities: 9,889(340,734 rooms)

High76.2 billion yen(163 facilities, 8,824 rooms)

600 thousand
yen/month

500 thousand yen/month

Total
52.0%
2,565.5 billion yen

27.5 billion yen(46 facilities, 4,963 rooms)

Price (assumed monthly fees)

29.5%

10.3 billion yen(8 facilities, 1,023 rooms)

130.9 billion yen(377 facilities, 20,473 rooms)
400 thousand
yen/month

350 thousand yen/month

327.7 billion yen(1,284 facilities, 69,380 rooms)
200 thousand
yen/month

87.9 billion yen(248 facilities, 23,056 rooms)
200 thousand
yen/month

13.1%
5.4%

Rental housing exclusively for theelderly/ Elderly housing withsupportive services
Market size:
336.1 billion yen
No. of facilities: 4,579(144,434 rooms)

Zone of owned
properties

Fee-based homes for the elderly(for those who are independent)
Market size:
139.0 billion yen
No. of facilities: 476(35,760 rooms)

798.8 billion yen(8,065 facilities, 242,057 rooms)

13.5 billion yen(174 facilities, 6,718 rooms)

Low

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

Independent

Required level of nursing care/support

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.

25Section 5

Financial Status

Status of Interest-Bearing Liabilities (end of 3rd Fiscal Period)
Status of interest-bearing liabilities (as of October 31, 2015)
Term

Balance
Interest(million yen) rate type

LenderMizuho Bank (**)
Resona Bank (**)
Sumitomo Mitsui Trust Bank (**)

Long-term

The Musashino Bank

Drawdown
date

800

0.344%

October 31, 2017

0.532%

October 31, 2019

1,200

0.532%

October 31, 2019

1,200

0.431% November 5,
2014
0.532%

October 31, 2018

700(**) (***)

500

October 31, 20170.355%

October 31, 2017

500

0.431%

October 31, 2018

500

0.524%

May 29, 2020

Mizuho Trust & Banking (**)

500

0.524% June 1, 2015

May 29, 2020

The Musashino Bank (**)

500

0.524%

May 29, 2020

Resona Bank (**)

500

0.474%

Shinkin Central Bank400

0.293%

October 15,
2015

October 30, 2020

Total

8,800

-

-

500

The Dai-ichi Life Insurance
Mizuho Bank (**)

Ratio of long-term loans
and short-term loans

Fixed

-

-

Ratio of fixed rates andvariable rates

3.5 years(End of 3rd
Fiscal Period)

October 31, 2019

0.324%

Shinkin Central Bank

Averageremaining period(Note)

Repayment
deadline

1,000

(**)

Mizuho Trust & Banking

Interestrate(*)

LTV(Note)

LTV(Note)(End of 3rd
Fiscal Period)(After the public
offering)

49.8%

44.7%

(Note) Average remaining period and LTV are calculated based on
figures as of October 31, 2015 and are rounded to one decimal
place. Furthermore, LTV is calculated based on total assets.

October 31, 2018

Repayment schedule(million yen)
3,500
3,000

Long-term
loans
100%

Ratio offixed rate
100%

2,500
2,000
1,500
1,000
500

(*)
(**)

Interest rates are rounded to three decimal places.
For loans of which variable interest rates have been converted to, in effect, fixed rates through a swap agreement,interest rate indicates the rate after such conversion.
(***) Interest rates are converted on a one year=365 days basis.

0

Apr. Oct. Apr. Oct. Apr. Oct. Apr. Oct. Apr. Oct.
2016 2016 2017 2017 2018 2018 2019 2019 2020 2020

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

Policy on Distributions in Excess of Earnings /List of Indices including NHI
Implementation of distributions in excess of earnings
taking advantage of features of healthcare assets

Implement distributions in excess ofearnings every accounting period with

High depreciation ratio

an upper limit of 40% ofRegarding facilities owned by NHI, the ratio ofbuildings to the entire asset is high, at nearly 70%.
 The ratio of depreciation without cash payout is high.


depreciation
Rental business
expenseand
SG&A expenseLow burden of construction expenses

Repairs to be borne by NHI are limited to building
frames and main structural sections
 Expenses required for update of equipment tend tobe low

RentalincomeDepreciation

Minimizing impact on finance byconducting distributions in excess ofearnings with upper limit of 40% ofdepreciation for each period

Distributions inexcess of earnings



Incomebefore taxes

Distributions(income)Distributions
tounitholders

List of Indices including NHIMonth / year

Name of index

December 2015

Thomson Reuters GPR / APREA Investable REIT 100 Index

September 2015

Thomson Reuters GPR / APREA Composite Index

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

Overview of Unitholder Benefits Program
With the cooperation of operators who are the tenants, the unitholder benefits program will be offered to unitholders as of the end of fiscal period ended October 2015.

Charm Care
Corporation
Discount coupon for
entrance fee

Free voucher for an
overnight trial stay(with meals)

Discount
coupon for
entrance fee

Nichii Gakkan
Company
Free Enrollment anddiscount from Tuitionof COCO Juku, etc.

Discount voucher forhomemaking, childcare andnursing-care at his/her own
expense services

Free service foran overnight trial
stay (with meals)

Free visiting massage
service

Free visiting
beautyparlor/barber
service

Gift voucher for trips
with nursing care

Discount onroom fee

Free voucher fora one-day facility
tour (with lunch
provided)

Cedar Co., Ltd.
Free voucher for an
overnight trial stay(with meals)

Free voucher for a
one-day facility tour
(with lunch provided)

SilverHeights
SapporoWisnet Co., Ltd.
Welfare equipment
presented toresidents

Sawayaka
Club Co., Ltd.

Sompo Care
Next Inc.(Note)

Discount
voucher for
entrance fee

Free voucher foran overnight trial
stay (with meals)

Free voucher fora one-day facility
tour (with lunch
provided)

Discount onroom fee

Free voucher foran overnight trial
stay(with meals)

Free voucher fora one-day facility
tour (with lunch
provided)

Nihon Kaigo Iryo
Center Co., Ltd.
Free voucher for an overnight
trial stay (with meals)

Anabuki Medical
Care Inc.
Furniture presented to new residents ofAnabuki Medical Care’s facilities that are ownedby NHI(Note) Watami Co., Ltd. transferred all of issued shares of Watami no Kaigo Co., Ltd. to Sompo Japan Nipponkoa Holdings, Inc. on December 1, 2015. The business name of Watami no
Kaigo Co., Ltd. was changed to Sompo Care Next Inc. on the same day.
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.

29

Appendix

Change in Major Indices due to the Public Offering
Major indicesUpon listing(as of November 5, 2014)

Assets acquired in
3rd FP(ended October 2015)

The 3rd FP(ended October 2015)

Number ofproperties

14 properties

3 properties

Total assets (totalacquisition price)

13,280 million yen

Total appraisal
value

Average appraisal
NOI yield

Occupancy rate

Assets acquired at thetime of public offering

After the public offering

17 properties

4 properties

21 properties

2,778 million yen

16,058 million yen

2,550 million yen

18,608 million yen

15,138 million yen

2,924 million yen

20,410 million yen

2,637 million yen

23,047 million yen

6.94%

5.60%

6.70%

5.19%

6.49%

100.0%

100.0%

100.0%

100.0%

100.0%End of the 2nd FP(ended April 2015)

End of the 3rd FP(ended October 2015)

After the public offering

Total interestbearing liabilities

6,400 million yen

8,800 million yen

9,300 million yen

LTV

42.3%

49.8%

44.7%

NAV per unit

174,096 yen

190,907 yen

191,175 yen(Note 1) Figures for Upon listing, The 3rd FP (ended October 2015) are figures as of the respective timing.
(Note 2) Appraisal NOI at the time of acquisition is used for NOI yield for assets acquired after the public offering.
(Note 3) Figures for After the public offering are calculated based on actual figures as of the end of the 3rd FP (ended October 2015).
(Note 4) LTV after the public offering (plan) = (Total interest-bearing liabilities at the end of the 3rd FP + New borrowings in the 4th FP – Short-term borrowings planned to be repaid withpart of proceeds from the public offering) / (Total assets at the end of the 3rd FP + Total paid-in amount of the public offering + New borrowings in the 4th FP - Short-termborrowings planned to be repaid with part of proceeds from the public offering)(Note 5) NAV after the public offering (plan) = {( Unitholders’ equity at the end of the 3rd FP + Total paid-in amount of the public offering - Expected amount of refund of investment from
distributions in excess of earnings in the 3rd FP) + (Total appraisal value at the end of the 3rd FP + Appraisal value of properties acquired in the 4th FP at the time of theacquisition) – (Total period-end book value at the end of the 3rd FP + Total acquisition price of properties acquired in the 4th FP) } / Number of investment units issued after the
public offering (74,632 units)
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

Overview of Public Offering in October 2015
Assets acquired at the time of public offering(Acquisition date: November 24, 2015)

Overview of the public offering
Issuance type

Public offering(primary offering, secondary offering)Issuance
resolution date

October 29, 2015

Pricing dateNovember 10, 2015

Subscription
periodNovember 11 – November 12, 2015

Payment datePrimary offering: November 17, 2015
Third-party allotment: December 16, 2015

Number ofInvestment Units
Outstanding before
the public offering

60,800 units

Number ofinvestment units
offeredTotal: 13,832 units (Primary offering: 12,130
units, third-party allotment: 1,702 units,
secondary offering: 18,500 units)<Alpha Living
Okayama Nishigawa
Ryokudokoen>
Acquisition price:
730 million yen

74,632 units

Issue price

196,570 yen

Paid-in amount

189,440 yen

Total paid-in
amountPrimary offering: 2,620 million yen (including
third-party allotment)
Secondary offering: 3,504 million yen<Alpha Living
Takamatsu Ekimae>
Acquisition price:
605 million yen<Alpha Living
Takamatsu
Hyakkenmachi>
Acquisition price:
605 million yen

Change in investment value (daily)(yen)Issuance

240,000

Number ofInvestment Units
Outstanding after
the public offering<Alpha Living Okayama
Korakuen>
Acquisition price:
610 million yen

resolution date

Pricing date

Trade volume (right axis)
Price of investment unit (left axis)
出来高（右軸）TSE REIT
Index (left axis)

6,000

投資口価格（左軸）
東証REIT指数（左軸）5,000

220,000(units)4,000

200,000

3,000

180,000

2,000

160,000

1,000

140,000

Oct. 22

Oct. 28

Nov. 4 Nov. 10 Nov. 16 Nov. 20 Nov. 27

Dec. 3

Dec. 90(*) TSE REIT Index is calculated using the index on October 22, 2015 as the closing
price of NHI’s investment unit (200,800 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.

32

Status of Portfolio (as of October 31, 2015)
Rent-Paying Capacity

1.2x or less
15.6%

More than 2.0x
16.5%

Rent-Paying
Capacity (Note 1)
Average 1.5xMore than 1.2x, but
1.5x or less
28.8%

(On appraisal basis:
Average 1.7x)More than 1.5x, but
2.0x or less
39.1%

(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
4.8%

Proportion of
Nursing
Care Fee(Note 2)
Average 52.0%

Proportion of One-Time
Entrance Fee Amortization Income

More than 15%,
but 20% or less
16.4%

50% or less
41.2%

More than
5%, but 15%
or less
19.9%

Proportion of
One-Time
Entrance Fee
Amortization
Income(Note 3)
Average 5.8%

5% or less
63.8%

More than 50%,
but 60% or less
54.1%

(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).

(Note 3) “Proportion of one-time entrance fee
amortization income” refers to the
proportion of the acquired asset’s net
sales that is accounted for by onetime entrance fee amortization
income.

(*) Data are based on information on business income and expenditures from October 2014 to September 2015 disclosed by the respective operator.
However, data for Nichii Care Center Fukushima Omori are based on information on business income and expenditures from July 2014 to June
2015; for La’nassica Arakogawa from April 2014 to March 2015; for Silver Heights Hitsujigaoka No.3 from February 2014 to January 2015.

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.

33

Portfolio Resident Attributes (as of October 31, 2015)
Gender(Note1)

Age Group(Note2)

Level of Requiring Nursing Care or Support(Note 3)

Under 65
years

Other

0.2%

3.1%

Male
27.9%
Female72.1%

65 yearsor over,but under
75 years

Requiring
nursingcare level 5

Requiring
nursingcare level 4

8.2%
75 yearsor over,but under
85 years

27.4%

85 yearsor over

61.4%

9.9%

20.0%

(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 Rest Villa Sagamihara Chuo and Rest
Villa Kinugasayama Koen as there is nosuch information stated in the written
explanation of important matters).

0.7%

Requiringsupport level 1

5.1%
Requiring support
level 2

4.5%

Averagerequired
16.6%
level ofnursing care
2.4
Requiring

nursingcare level 3(Note 1) The graph indicates the ratio of thenumber of residents per gender
expressed as a percentage of the total
number of residents.

Independent

Requiring nursing
care level 1

22.0%

Requiring nursing
care level 2

20.9%(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 (from July 2015 to October 2015) provided by each operator.
All percentage figures are 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.

34

Remaining Lease Contract Period of Each Property
Contract expiry date

Remaining lease
contract period

Minna-no-ie Chuo-ku En’nami

March 31, 2044

28.4 years

Minna-no-ie Omiya Yoshinocho

February 28, 2037

21.3 years

Super Court

Super Court JR Nara-Ekimae

July 14, 2039

23.7 years

Charm Care Corporation

Charm Sweet Ryokuchi Koen

August 28, 2038

22.8 years

Silver Heights Sapporo

Silver Heights Hitsujigaoka No.3

November 30, 2035

20.1 years

June 30, 2035

19.7 years

September 11, 2034

18.9 years

March 28, 2034

18.4 years

November 30, 2034

19.1 years

March 27, 2034

18.4 years

Nichii Care Center Fukushima Omori

March 31, 2034

18.4 years

Verger Hirakata

March 28, 2034

18.4 years

La’nassica Arakogawa

March 31, 2028

12.4 years

Operator

Property name

WisnetAlpha 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 Next

Rest Villa Hiroshima Hikarigaoka
Rest Villa Sagamihara Chuo
Sawayaka Hinodekan
Sawayaka Riverside Kurinoki
Sawayaka Obatake Sanbankan

Sawayaka Club

Sawayaka Kaikyokan
Sawayaka Meisuikan
Sawayaka Heart Life Nishikyogoku

Nichii Gakkan
Nihon Kaigo Iryo Center
Cedar

Average remaining period

19.9 years(Note) “Remaining Lease Contract Period” indicates period remaining as of October 31, 2015. Although Alpha Living Okayama Nishigawa Ryokudokoen, Alpha Living
Okayama Korakuen, Alpha Living Takamatsu Ekimae and Alpha Living Takamatsu Hyakkenmachi were acquired on November 24, 2015, their figures are also
calculated as of October 31, 2015. “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.

35

(Reference) History of Revisions to Nursing Care Fees
Time of revision

Main points of revision

FY2003 revision

・・

FY2005 revision(Enforced in
October 2005)

FY2006 revision

FY2009 revisionEnhancement of appropriateness of facility services, etc.
 Improvement in service quality and appropriateness
Adjusting service fees by taking into account the difference in income and expenditure of facilities Assessment of at-home services for encouraging self-support
Enhancing livelihood support of home-visit nursing care, additional payment for rehabilitation
implemented individually, etc.

 Improvement in working conditions of care providers
 Securement of care providers / improvement of working conditions of care providers
・Additional payment in accordance with care providers’ expertise, career, etc.

FY2012 revision-2.3%[At-home：＋0.1%][Facility：-4.0%]

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
 Promotion of nursing care prevention and rehabilitation
・ Changing prevention benefits provision from piecework payment to comprehension
payment by month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 tothose requiring high level of cares, etc.

Rate of revision-0.5%【-2.4%】[At-home：-0.1%]【-1.0%】[Facility：±0.0%] 【-4.0%】【】: Rate of revision including
revision in FY2005+3.0%[At-home：＋1.7%][Facility：＋1.3%]

Securement of improved working conditions for care staff and promotion of community
comprehensive care
 Foundation of additional payment for improving working conditions
 Establishment of new services such as around-the-clock periodical door-to-door service+1.2%

Response to increased burden due to the consumption tax hike

+ 0.63%

FY2014 revision

FY2015 revision

 Initiatives for building a “community comprehensive care system”
 Further reinforcement of care for those requiring medium- to high- levels of nursing care and thosewith dementia
 Promotion of securing care staff
 Enhancement of appropriateness of service assessment and establishment of efficient system forproviding services[At-home：＋1.0%][Facility：＋0.2%]-2.27%[At-home：-1.42%][Facility：-0.85%]

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

Introduction of Operators

Company nameHead office

Nichii Gakkan Company

Company name

Sawayaka Club Co., Ltd.

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, Akihiko Terada
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

1-1-3 Haneda, Ota-ku, Tokyo

Sawayaka Obatake Sanbankan Sawayaka Meisuikan

Sawayaka Kaikyokan

シダー

Representative director Representative director, Ken Endo

Company name

Cedar Co., Ltd.

Established

November 11, 1992

Head office

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

Capital

5,095 million yen

Representative director Representative directorr, Yoshitada Yamasaki

Attributes(listed market)

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

Established

April 25, 1981
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

Fee-based nursing homes for the elderly, fee-based assisted-living homes forthe elderly, outpatient day long-term care (day service) business, home-visit
long-term care (home help service) business, home-visit nursing business, inhome long-term care support business

CapitalParent company

Sompo Japan Nipponkoa Holdings, Inc.

Principal businesses

Rest Villa Kinugasayama Koen

Rest Villa Hiroshima Hikarigaoka

Rest Villa Sagamihara Chuo

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.

37

Introduction of Operators
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

Capital10 million yen

Attributes(listed market)

Unlisted company

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

Representative director Representative director Yukinori Takahashi

Attributes(listed market)

Unlisted company

Established

January 1998

Capital

347 million yen

Attributes(listed market)

Unlisted company

Principal business

Operation and management of group home for dementia, fee-based
homes for the 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

Operation/management of fee-based homes for the elderly and housing
for the elderly, design/supervision of “Super Hotel,”Principal businesses operation/management of buildings and condominiums,
planning/design/construction of rental apartments, a nursing care
worker nurturing and training business, etc.
Parent company

Super Holdings Co., Ltd.

Super Court JR Nara-Ekimae

Minna-no-ie Omiya Yoshinocho

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.

38

Introduction of Operators
Backup operator for Silver Heights Hitsujigaoka No.3
Company nameSilver Heights Sapporo Co., Ltd.

Head office

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

Representative
director

Representative director, Hirofumi Kaneko

Established

December 1961

Capital50 million yen

Attributes(listed market)

Unlisted company

Living Platform, Ltd. agreed with Silver Heights Sapporo Co., Ltd. tomutually complement each other managerially and financially, andconcluded, on September 7, 2015, a business partnership agreement which
confirms development of management system together as groupcompanies.

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

Company name

Living Platform, Ltd.

Head office

20-291, Minami Nijo-nishi, Chuo-ku, Sapporo-shi, Hokkaido

Representative
director

Representative director, Hirofumi Kaneko

Established

June 2011

Capital79 million yen

Attributes(listed market)

Unlisted company

Principal businesses

Operation of nursing care-related business, childcare-related business andbusiness related to services for the disabled.

Silver Heights Hitsujigaoka No.3

Company nameAnabuki Medical Care Inc.

Head office2-8, Togiyamachi, Takamatsu, Kagawa

Representative
director

Representative director, Yoshihisa Otani

Established

June 2009

Capital

80 million yen

Attributes(listed market)

Consolidated subsidiary of Anabuki Kosan Inc. (First Section of the Tokyo
Stock Exchange, Securities code: 8928)

Principal businesses

Nursing care-related business (nursing care business, operation of feebased homes for the elderly, etc.), real estate management, advertising, etc.

Alpha Living
OkayamaNishigawa
Ryokudokoen

Alpha Living Okayama
Korakuen

Alpha Living
Takamatsu Ekimae

Alpha Living
Takamatsu
Hyakkenmachi

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

Management Back-up Agreement

Hokkaido Area
No. of Operators: 4
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: 4
Tohoku Area
No. of Operators: 3

Discuss handoverof operation toother operators incase ofcontingency

Kanto Area
No. of Operators: 6

Kinki Area
No. of Operators: 8
Shikoku Area
No. of Operators: 3
Kyushu Area
No. of Operators: 4This 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

Appraisal Value at End of Fiscal Period (as of October 31, 2015)
End of 3rd FP

End of 2nd FP

Difference(End of 3rd FP- End of2nd 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

Appraisal value(million yen)(million yen)(million yen)

Nichii Care Center Fukushima
Omori

Japan Real Estate Institute

349

352

5.8

345

5.6

6.0

22

332

17

Rest Villa Hiroshima Hikarigaoka

Japan Real Estate Institute

1,220

1,230

5.3

1,200

5.1

5.5

69

1,150

70

1,720

1,740

5.0

1,710

4.8

5.2

88

1,630

90

3,030

3,070

4.7

3,010

4.5

4.9

143

2,760

270

Rest Villa Sagamihara Chuo
Charm Sweet Ryokuchi Koen

Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.

Sawayaka Kaikyokan

Japan Real Estate Institute

886

894

5.4

877

5.2

5.6

50

840

46

Sawayaka Meisuikan

Japan Real Estate Institute

802

808

5.4

795

5.2

5.6

47

760

42

1,210

1,220

4.9

1,200

4.7

5.1

60

1,100

110

1,570

1,580

5.3

1,560

5.1

5.5

85

1,440

130

1,990

2,000

5.0

1,980

5.1

5.2

100

1,950

40

1,380

1,390

5.3

1,380

5.4

5.5

74

1,360

20

923

935

5.0

918

4.8

5.2

47

863

60

318

324

5.1

316

4.9

5.3

17

292

26

350

355

5.2

348

5.0

5.4

18

325

25

1,690

1,700

5.2

1,680

5.3

5.4

91

1,660

30

770

778

5.1

766

5.2

5.3

40

-

-

Sawayaka Heart Life Nishikyogoku
Verger Hirakata
Rest Villa Kinugasayama Koen
La'nassica Arakogawa
Sawayaka Hinodekan
Sawayaka Riverside Kurinoki
Sawayaka Obatake Sanbankan
Super Court JR Nara-Ekimae
Minna-no-ie Omiya Yoshinocho

Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
The Tanizawa Sōgō
Appraisal Co., Ltd.
The Tanizawa Sōgō
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
The Tanizawa Sōgō
Appraisal Co., Ltd.
The Tanizawa Sōgō
Appraisal Co., Ltd.

Minna-no-ie Chuo-ku En’nami

Japan Real Estate Institute

882

891

5.0

872

4.8

5.2

44

-

-

Silver Heights Hitsujigaoka No.3

Daiwa Real EstateAppraisal Co., Ltd.

1,320

1,330

5.0

1,310

4.8

5.2

70

-

-

20,41020,597-

20,267

-

-

1,075

16,462976

Total(Note) Difference of appraisal value does not include properties acquired in the 3rd FP.
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

Portfolio List (1)Property nameLocation(residential address)

AccessNichii Care Center
Fukushima Omori

Rest Villa
Hiroshima Hikarigaoka

Rest Villa
Sagamihara Chuo

Charm Sweet
Ryokuchi Koen

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

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)

349

1,220

1,720

3,030

886

NOI yield (%) (Note 2)

8.5

7.2

7.6

7.4

8.0

Depreciation(million yen) (Note 3)

4

9

9

15

17

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

Number of rooms (rooms)

52

80

80

128

65

Occupancy rate (%) (Note 5)

100.0

88.7

58.7

97.6

93.8

Charm Care Corporation

Sawayaka Club Co., Ltd.

22.8

18.4

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

Nichii Gakkan Company

Sompo Care Next Inc.

18.4

Appraisal values are as of October 31, 2015.
NOI yields are calculated by dividing the appraisal NOI by the acquisition price.
Figures for depreciation are actual figures of the 3rd FP.
For description of structure, “S” refers to steel-framed structure and “RC” refers to
reinforced concrete structure.

18.4

Sompo Care Next Inc.
18.4

(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 October 31, 2015.

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

Portfolio List (2)Sawayaka Meisuikan

Sawayaka Heart Life
Nishikyogoku

Location(residential address)

5-7-6 Higashinarumizu,
Yahatanishi-ku,
Kitakyushu-shi, Fukuoka

8 Tsutsumishita-cho,Nishikyogoku, Ukyo-ku,
Kyoto-shi, Kyoto

AccessApproximately 2km from
Kurosaki Station on the JR
Kagoshima Main Line

Approximately 1.2km fromApproximately 3.5km from
Nishikyogoku Station on the Kuzuha Station on the
Hankyu Kyoto Line
Keihan Main Line

Property nameRest Villa
Kinugasayama Koen

Verger Hirakata

2-20-4 Koyamichi,
Hirakata-shi, Osaka

La’nassica Arakogawa

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

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

Approximately 1.2km from
Kinugasa Station on the JR
Yokosuka Line

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

Acquisition price(million yen)

590

750

950

1,839

1,279

Real estateappraisal value(million yen) (Note 1)

802

1,210

1,570

1,990

1,380

NOI yield (%) (Note 2)

8.1

8.1

9.0

5.5

5.8

Depreciation(million yen) (Note 3)

7

6

9

16

17

Structure / floors (Note 4)

RC/6F

RC/B1・6F

RC/5F

S/4F

RC/B1・5F

Leasable area (m2)

4,553.67

2,459.19

2,925.25

4,265.88

3,590.40

Total leased area (m2)

4,553.67

2,459.19

2,925.25

4,265.88

3,590.40

Number of rooms (rooms)

87

84

104

104

100

Occupancy rate (%) (Note 5)

97.7

97.6

72.8

90.3

88.0

Sawayaka Club Co., Ltd.

Sawayaka Club Co., Ltd.

18.4

18.4

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

Appraisal values are as of October 31, 2015.
NOI yields are calculated by dividing the appraisal NOI by the acquisition price.
Figures for depreciation are actual figures of the 3rd FP.
For description of structure, “S” refers to steel-framed structure and “RC” refers to
reinforced concrete structure.

Nihon Kaigo
Iryo Center Co., Ltd.
18.4

Sompo Care Next Inc.

Cedar Co., Ltd.

18.9

12.4

(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 October 31, 2015.

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

Portfolio List (3)Property nameLocation(residential address)
Access

Sawayaka
Hinodekan

Sawayaka
Riverside Kurinoki

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

Sawayaka Obatake Sanbankan

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

Super Court
JR Nara-Ekimae

Minna-no-ie
Omiya Yoshinocho

1-6-37 Obatake, Kokurakita-ku, 1-5-35 Omiyacho,
Kitakyushu-shi, Fukuoka
Nara-shi, Nara

Approximately 1.7km fromApproximately 1.65km from Approximately 2.5km from
Niigata Station on the JR
Niigata Station on the JR
Kokura Station on the JR
Joetsu Shinkansen Shinetsu Joetsu Shinkansen Shinetsu Kagoshima Main Line
Main Line
Main Line

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

Approximately 280m from Approximately 2.5km fromNara Station on the JR
Miyahara Station on the JR
Kansai Main Line
Takasaki Line

Acquisition price(million yen)

773

266

289

1,569

740

Real estateappraisal value(million yen) (Note 1)

923

318

350

1,690

770

NOI yield (%) (Note 2)

6.2

6.4

6.5

5.8

5.5

Depreciation(million yen) (Note 3)

8

3

4

17

5

S/3F

S/4F

S/3F

RC/7F

RC/4F

Leasable area (m2)

2,674.37

1,349.39

1,411.78

5,057.07

1,800.03

Total leased area (m2)

2,674.37

1,349.39

1,411.78

5,057.07

1,800.03

Number of rooms (rooms)

50

33

50

155

33

Occupancy rate (%) (Note 5)

100.0

82.0

92.0

86.4

93.9

Sawayaka Club Co., Ltd.

Sawayaka Club Co., Ltd.

Sawayaka Club Co., Ltd.

Super Court Co., Ltd

Wisnet Co., Ltd.

19.1

19.1

19.1

23.7

21.3

Structure / floors (Note 4)

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

Appraisal values are as of October 31, 2015.
NOI yields are calculated by dividing the appraisal NOI by the acquisition price.
Figures for depreciation are actual figures of the 3rd FP.
For description of structure, “S” refers to steel-framed structure and “RC” refers to
reinforced concrete structure.

(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 October 31, 2015. Although Alpha Living
Okayama Nishigawa Ryokudokoen was acquired on November 24, 2015, its figure is
calculated as of October 31, 2015.

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 (4)Alpha Living Okayama
Nishigawa
Ryokudokoen

Alpha Living
Okayama Korakuen

Alpha Living
Takamatsu
Hyakkenmachi

Alpha Living
Takamatsu Ekimae

Minna-no-ie
Chuo-ku En’nami

Silver Heights
Hitsujigaoka No.3

Location(residential address)

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

15-4-38, Tsukisamu
Higashi Shijo,
Toyohira-ku,
Sapporo-shi, Hokkaido

6-2 Chuo-cho, Kita-ku, 1-11-4, Hama, Naka-ku, 1-6, Nishiuchi-machi,
Okayama-shi,
Okayama-shi,
Takamatsu-shi,
OkayamaOkayama
Kagawa8-11, Hyakken-machi,
Takamatsu-shi,
KagawaAccessApproximately 2.4km
from Kitayono Stationon the JR Saikyo Line

Approximately 1.2km
from Nango Juhatchome
Station on the Tozai Lineof the Sapporo Municipal
SubwayApproximately 1.5km Approximately 1.9km
from Okayama Station from Okayama Stationon the JR Sanyo Main on the JR Sanyo Main
Line
Line

Approximately 1.1km
from Takamatsu Stationon the JR Yosan Line

Property nameApproximately a fiveminute walk from
Takamatsu Station on
the JR Yosan Line

Acquisition price(million yen)

838

1,200

730

610

605

605

Real estateappraisal value(million yen) (Note 1)

882

1,320

760

646

622

609

NOI yield (%) (Note 2)

5.4

5.9

5.1

5.3

5.1

5.2

Depreciation(million yen) (Note 3)

6

1

-

-

-

-

Structure / floors (Note 4)

RC/3F

RC/3F

RC/7F

RC/4F

RC/6F

RC/10F

Leasable area (m2)

1,963.03

7,267.56

2,124.16

2,128.44

1,848.06

1,929.16

Total leased area (m2)

1,963.03

7,267.56

2,124.16

2,128.44

1,848.06

1,929.16

Number of rooms (rooms)

51

109

53

45

43

52

Occupancy rate (%) (Note 5)

68.6

87.3

61.8

43.7

97.7

100.0

Operator
Remaining lease contract
period (year) (Note 6)

Wisnet Co., Ltd.
28.4

Silver Heights
Sapporo Co., Ltd.
20.1

Anabuki Medical
Care Inc.
19.7

Anabuki Medical
Care Inc.
19.7

Anabuki Medical
Care Inc.

Anabuki Medical
Care Inc.

19.7(Note 4) For description of structure, “S” refers to steel-framed structure and “RC” refers to(Note 1) Appraisal values are those as of July 31, 2015 for Alpha Living Okayama Nishigawa
reinforced concrete structure.
Ryokudokoen, Alpha Living Okayama Korakuen, Alpha Living Takamatsu Ekimae andAlpha Living Takamatsu Hyakkenmachi (hereinafter, the “Four Alpha Living Properties”) (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.
and those as of October 31, 2015 for other properties.
This document
is notarematerial
disclosedin compliancewith theInstruments
and Exchange
Act orregulation
similarnature,is it intended
the purposesof solicitation.
(Note6) anyAlthoughthe ofFour
Alpha
Livingnor
Properties
were foracquiredon November
24, 2015, their(Note2) NOI yields
calculatedby dividing
the appraisal
NOIFinancial
by the acquisition
price.
NHI
advisesreaderstomakeinvestment
decisions
at
their
own
judgment.
Remaining lease contract periods are calculated as of October 31, 2015.
(Note 3) Figures for depreciation are actual figures of the 3rd FP.

19.7

45

Status of Portfolio
Name of facility

Occupancy rate (%)

One-time entrance fee(thousand yen)Monthly rent (yen)Date of acquiring the written
explanation of important matters97.6

2,400～4,800

150,333～196,333

August 1, 2015

Charm Sweet Ryokuchi Koen
Super Court JR Nara-Ekimae

86.4

150,080

October 1, 2015

Rest Villa Hiroshima Hikarigaoka

88.7

4,500～6,800

186,690

July 1, 2015

Rest Villa Sagamihara Chuo

58.7

6,600～7,800

196,214

October 1, 2015

Rest Villa Kinugasayama Koen

90.3

3,800～7,800

199,071

December 1, 2015

Sawayaka Kaikyokan

93.8

142,600～145,600

October 1, 2015

Sawayaka Meisuikan

97.7

103,440～138,440

October 1, 2015

Sawayaka Heart Life Nishikyogoku

97.6

161,000～181,600

October 1, 2015

Sawayaka Hinodekan

100.0

196,820

October 16, 2015

Sawayaka Riverside Kurinoki

82.0

157,762

October 16, 2015

Sawayaka Obatake Sanbankan

92.0

122,300

October 1, 2015

Nichii Care Center Fukushima Omori

100.0

162,743

November 1, 2015

La’nassica Arakogawa

88.0

150,180～152,180

November 1, 2015

Verger Hirakata

72.8

112,000～135,000

December 4, 2015

1,260～2,100

Minna-no-ie Omiya Yoshinocho

93.9

163,207

October 1, 2015

Minna-no-ie Chuo-ku En’nami

68.6

168,800

October 1, 2015

Silver Heights Hitsujigaoka No.3

87.3

2,000～4,000

162,540

October 1, 2015

Alpha Living Okayama Nishigawa Ryokudokoen

61.8

1,380～2,760

137,700～231,500

October 1, 2015

Alpha Living Okayama Korakuen

43.7

1,620～3,000

136,800～251,600

October 1, 2015

Alpha Living Takamatsu Ekimae

97.7

1,200～2,400

139,690～147,690

October 1, 2015

Alpha Living Takamatsu Hyakkenmachi

100.0

960～1,920

134,760～190,760

October 1, 2015

(Note) 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. Occupancy rates are obtained by dividing the number of residents indicated in the written
explanation of important matter by resident capacity, rounded down to one decimal place.

Change in occupancy rates (overall)
90.0%

Number of
facilities

Number of facilities (right axis)

20

Occupancy rate (left axis)

88.0%

15

86.0%

10

84.0%

5

82.0%

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

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.
(Note)
Occupancy
are investment
obtained bydecisions
dividing thenumberresidents based on interviews with all facilities, by resident capacity.
NHI
advisesreadersrates
to makeat theirownofjudgment.

46

Balance Sheets for 3rd Fiscal Period Ended October 2015
The 2nd FP
ActualAmount(million yen)
Current Assets

Ratio

1,335

8.8%

Amount(million yen)

The 2nd FP
ActualAmount(million yen)

Ratio

987

Current Liabilities

5.6%

The 3rd FP
ActualRatio

109

Amount(million yen)

0.7%

Ratio

185

Cash and deposits

964

550

Operating account payables

916

Cash and deposits in trust

357

414

Short-term loans payable

-

-

22

Current portion of long-termloans payable--

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

13,79891.2%

16,67994.4%

Account payables – other44

98

13,721

90.7%

16,59894.0%

Advances received

54

69

Other current liabilities

1

2

8,534

10,091

5,185

6,504

1

1

44

0.3%

44

Leasehold rights andleasehold rights in trust

40

40

Other intangible fixedassets

3

3

Investments and other assets

32

Leasehold and security
deposits paid in trust
Long-term prepaid
expenses
Other investments and otherassetsTotal Assets

Liabilities

Fixed Assets

14

Fixed Liabilities
Long-term loans payable
Tenant leasehold and security
deposits
Tenant leasehold and security
deposits in trust

0.2%

Total Liabilities

6,979

46.1%

9,445

6,400

8,800

579

645

-

-

7,089

46.8%

1.1%

53.5%

9,631

54.5%
44.3%

Unitholders’ equity (net)

7,884

7,834

10

Unitholders’ equity

7,884

7,884

22

26

Deduction from unitholders’equity

-

-49

-

-

Unappropriated retained earnings

161

200

1.1%

Valuation, translation adjustments
and others

-

-

-

0.2%

10

15,134100.0%

36

17,666

0.2%

Net Assets

Other current assets

AssetsThe 3rd FP
Actual100.0%

Total Net Assets
Total Liabilities and Net Assets

8,045

53.2%

8,035

45.5%

15,134100.0%

17,666100.0%

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.

47

Status of Unitholders as of the end of October 2015
Major unitholders (top 10)

Ownership ratio of investment units by category
Category of unitholders

Number ofunits atthe end of
2nd FP

Number ofunits atthe end of
3rd FP

Increase/decr
ease from theprevious FP

Ratio at theend of
3rd FP*

No.

Name

Number ofunits held at
the end of
2nd FP

Number ofunits held at
the end of
3rd FP

Increase/decr
ease from theprevious FP

Ratio at theend of
3rd FP*

Individuals/others

14,57816,3191,741

26.84%

1

JHC-LPS

9,900

9,900

0

16.28%

Financial institutions

16,056

16,195139

26.64%

2

ASIA CUATRO-LPS

8,900

8,600

-300

14.14%

Major city banks

0

0

0

0.00%

3

Daiwa Securities Group Inc.

6,080

6,080

0

10.00%

Regional banks

1,984

1,878

-106

3.09%

4

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

5,283

5,192

-91

8.54%

Trust banks

12,867

12,787-80

21.03%

5

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

3,763

4,018

255

6.61%

Life insurancecompanies

286

286

0

0.47%

6

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

2,016

1,905

-111

3.13%

Non-life insurancecompanies

0

0

0

0.00%

7

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

1,300

1,189

-111

1.96%

Other financial
institutions

919

1,244

325

2.05%

8

Daiwa Real Estate Asset Management
Co. Ltd.

1,000

1,000

0

1.64%

Other domestic companies

27,53926,976-563

44.37%

9

Chugoku Bank, Ltd.

667

667

0

1.10%

Foreigners

2,095

764

-1,331

1.26%

10

505

483

-22

0.79%

Securities companies

532

546

14

0.90%

39,41439,034-380

64.20%

60,80060,8000

Total

Trust & Custody Services Bank, Ltd.
(Cash in Trust Taxable Account)

Total

100.00% *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.

48

Introduction of Asset Management Company
Position of the Asset Management Company in Daiwa Securities Group

Daiwa Securities Group
Retail Division

Wholesale Division
Global Markets

Global Investment Banking

Daiwa Securities Co., Ltd.

Asset Management
Division

Investment
Division

Daiwa
Asset Management
Co., Ltd.

Daiwa
Corporate Investment
Co., Ltd.

Daiwa
PI Partners Co. Ltd.
Daiwa Next Bank, Ltd.

IR activities in Japan and abroad
Daiwa Real Estate
Asset Management
Co. Ltd.

Collaboration

Introducing
Properties/
FinanceDaiwa Institute of
Research Ltd.
Daiwa Institute of ResearchBusiness Innovation Ltd.

Daiwa SB
Investments Ltd.

WealthManagement
Department

Other

Whollyowned

Daiwa Securities
SMBC Principal
Investments Co. Ltd.

Daiwa Securities
Business Center Co.,Ltd.
Daiwa Property Co.,Ltd.

Branch Office

Real Estate Agency Business

Real Estate Brokerage Business
Introducing Properties

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Support and Independence<Same boat investment in NHI by the
Daiwa Securities Group Inc.>
Holding 10.2% (after PO) of NHI’s
investment units issued

Operator

Investment Corporation<Conclusion of sponsor support agreement>

AssetManagement

Cooperation in securement of personnel
Provision of information on properties, etc.

Asset Management Company

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

<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.>

SponsorAdvisorSupport50
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

Overview of Asset Management Company (1)Directors

Corporate Profile
As of November 30, 2015
Corporate name
Address

Daiwa Real Estate Asset Management Co. Ltd.
6-2-1 Ginza, Chuo-ku, Tokyo

As of November 30, 2015
President and Representative
Director

Akira Yamanouchi

Vice President andRepresentative Director

Yuji Shinotsuka

Vice President andRepresentative Director

Yoshiki Nishigaki

Established

October 21, 2004

Director

Naoyuki Owa

Paid-in capital

200 million yen

Director (non-executive)

Toshihiro Matsui

Director (non-executive)

Mikita Komatsu

Representative Director

Akira Yamanouchi
AuditorTamaki Shibayama

Board of Directors

9
Executive directors: 4 / Executive auditors: 1
Non-executive directors: 2 / Non-executive auditors: 2

Auditor (non-executive)

Masaru Shirataki

Auditor (non-executive)

Shinji Kiso

No. of Employees

64 (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

License No. (3) 83920, Governor of Tokyo

Discretionary agent forreal estate transaction
approval

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

Association membership

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

REITs which entrust the asset management to
the Asset Management Company
As of November 30, 2015
Daiwa Office Investment
Corporation

Listed REIT focusing on office buildings
Asset size: approximately 445.7 billion yen(50 properties)

Daiwa Residential Private
Investment Corporation

Unlisted REIT focusing on residential properties
Asset size: approximately 78.2 billion yen(47 properties)

Nippon Healthcare Investment
Corporation

Japan’s first listed REIT focusing on healthcare
facilities
Asset size: approximately 18.6 billion yen(21 properties)

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

Overview of Asset Management Company (2)Organization of Asset Management Company
Shareholders’ Meeting
Corporate Auditors
Board of Directors
Compliance Committee
Investment Committee (*)* Set up separately for each
investment corporation

Compliance Officer
President andRepresentative Director
Internal Control OfficeAcquisition
Department

Origination
Department

Asset
Management
Department

Private FundManagement
Department

Customer
Relations
Department

Finance
Department

Office Investment Team

Office Management
Team

Advisory Team

Finance Team

Residential Investment
Team

Residential
Management Team

Operational Team

Accounting Team

Healthcare
Investment Team

Healthcare
Management Team

Administration
Department

Corporate
Planning
Department

Management Team

Investment Planning
Team
Construction
Management 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.

52

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.

53

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.

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.

55
55
55