This document was prepared based on statements made at the earnings announcement meeting held June 22, 2015 andshould not be construed as a solicitation for investment in the Investment Corporation. Moreover, please understand that weshall not be held liable for omissions and errors of data and phrases used in this document. Furthermore, opinions andforecasts indicated in this document are the Investment Corporation’s judgments as of the time this document was prepared.
No assurances or promises can be given regarding the accuracy and completeness of this information, and it is subject tochange without prior notice.

Main Q&As at Financial Results Briefing for the Fiscal Period
Ended April 2015 (2nd Fiscal Period) of Nippon Healthcare Investment
CorporationDate and Time: June 22, 2015 (Monday) 15:30 – 16:30
Presenter: Akira Yamanouchi, President and Representative Director, Daiwa Real Estate Asset Management Co., Ltd.
*Questions are listed according to the order they were asked.

Q1. What is the reason for the increase in rent-paying capacity by 0.1 since the time of the listing?
(Answer)
The main factor is the improvement in occupancy rate. Other factors include the effect of cost reduction
such as employment costs.
Q2. How do you assess the negative impact of revision to nursing care fees?
(Answer)
Although operators are making management efforts in the wake of the revision, rent-paying capacity isexpected to decrease by around 0.1 if the revision of nursing care fees is fully applied to the results ofthe 2nd fiscal period. Therefore, I believe the impact will be limited.
Q3. How do you perceive the current property acquisition situation and what is your standpoint on
cap rates?
(Answer)
We will not make any changes to the initial portfolio size target of 100 billion yen in three years.
However, there are actually many candidate properties that do not pass due diligence, and it is likelythat it will take more than three years to achieve the target.
As to the cap rate, the standpoint in the current market is 4.5% to 5.5% for cities and 5.5% to 6.5% forregional areas.
Q4. What are the specific advantages with regard to the independence of operators?
(Answer)
There are two major advantages to having specific operators as partners. The first is that it enables us
to acquire the properties owned by the operator. The second is that we can obtain the operational
know-how of the operator. However, since the number of properties owned by a specific operator islimited and each operator tends to have “its own ways,” there are both advantages and disadvantages.
The advantage of not having specific operators is that we can keep the same distance from various
operators. As a result, the level of information disclosure of operators has been extremely high. As for
operational know-how, we believe it is well taken care of with the cooperation of AIP Healthcare Japan,
which has extensive consulting experience.
Q5. Is the property with 1.2 times or less rent-paying capacity in a deficit? If so, are you notconcerned about their management?
(Answer)1

We are not concerned as they are currently in the black. The operator of the property operates manyother properties other than the one in the portfolio and has a sufficient operation track record.
The name of the property and the operator are not disclosed as we have not obtained their consent,
but we are in continuous communication with the operator and thus have no particular concerns.
Q6. With LTV, there are strategies such as aiming for growth by further exercising leverage andcreating acquisition capacity by utilizing high investment unit prices. How do you view LTV?
(Answer)
In principle, we intend to acquire properties with the maximum level of LTV at 60% while securingacquisition capacity.
If asked to choose between utilization of LTV and expansion of acquisition capacity through capitalincrease to place more importance on achieving future growth, our intention is to conduct balanced
management while considering a certain level of equity financing, rather than exercising leverage tothe maximum level.
On the other hand, it is possible that the market will start accepting higher leverage compared to that ofother asset classes as the stability of healthcare assets becomes more recognized due to theaccumulation of a track record.
Q7. What are your projections for the cap rates of the properties recently acquired, which are lower
than that of properties acquired at the time of listing?
(Answer)
It probably was difficult for appraisers to evaluate fee-based homes for the elderly which we acquired at
the time of listing as we were the first healthcare REIT to be listed. With the listing of other REITs
dealing in the same asset class, etc. since then, the evaluation of healthcare REITs seems to havesettled down.
Although there may be a slight decline in cap rates considering recent transactions, we do not expectthat it will continue to decrease consistently going forward.
Q8. What levels do you consider to be safe for the Proportion of Nursing Care Fee and Proportion ofOne-Time Entrance Fee Amortization Income on page 8 of the presentation materials?
(Answer)
It is difficult to say what is safer, the portion paid by the public or by the residents. Since the average
proportion of nursing care fee of fee-based homes for the elderly is said to be 60%, we do not think that
NHI’s portfolio is excessively dependent on nursing care fees. Properties in NHI’s portfolio are mainlyof medium- to low- priced facilities, thus they are closer to the safety net or social infrastructure innature. We believe that the Ministry of Health, Labour and Welfare is carefully revising nursing carefees giving due consideration to the management environment of operators and that they will not push
to the level where many operators become unable to continue operation.
Our current portfolio centers on medium- to low- priced facilities. However, we are also willing toconsider high-priced properties including hospitals, if there are any favorable candidates.
Q9. The guidelines for acquisition of hospitals are to be announced by the Ministry of Land,Infrastructure, Transport and Tourism on July 1. What target prices or cap rates do you have forhospitals and are there any hospitals currently under consideration?
(Answer)
There are some properties we have been discussing, but such discussions have not progressed far
enough to provide our perspectives on prices or cap rates.
We believe that even if the cap rate is lower than that of fee-based homes for the elderly, there arehospitals we can present as long as they have been steadily operated over the long-term in the2community they are located.
Q10. Although the management environment for operators is becoming harsher with the surge ofemployment costs, etc., are there any positive factors in terms of the macro environment?
(Answer)
No, I don’t think there are any major positive factors. But operators are making improvements and areresponding on their own.
Q11. Cap rates for healthcare facilities used to be evaluated as the cap rates of residential properties+ 100bp. How are they evaluated by appraisers presently and what aspects are evaluated otherthan the actual asset?
(Answer)Appraisers seem to have shifted their standpoint from evaluating on the basis of cap rates ofresidential properties +X to evaluating in terms of how long the asset can continue paying a fixed rentby analyzing the area and the market environment. They seem to evaluate assets based on whether
they can be operated over the long-term regardless of the operator, while taking into account theirlocation, customer targeting and other factors.
End3