FP 15 Semi-Annual Report
From November 1, 2021 to April 30, 2022

Securities Code 3309
4-15-1, Akasaka, Minato-ku, Tokyo
https://sekisuihouse-reit.co.jp/en/Co ntents
Outline of Asset Management Operation

1

Outline of the Investment Corporation

12

Condition of Investment Assets

15

Capital Expenditures for Property

28

Condition of Expenses and Debts

29

Condition of Investment Transactions

30

Other Information

32

Financial Statements
Balance Sheet

33

Statement of Income and Retained Earnings

35

Statement of Changes in Net Assets

36

Statement of Cash Distributions

38

Statement of Cash Flows

39

Notes to Financial Statements

40

Supplementary Schedules

56

Independent Auditor’s ReportOutline of Asset Management Operation
1. Developments in Asset Management in the Fiscal Period under Review(1) Brief History of the Investment Corporation
Sekisui House Reit, Inc. (“SHR”) was established on September 8, 2014 as an investment corporation investing
primarily in commercial properties including office buildings, hotels and retail and other properties, sponsoredby Sekisui House, Ltd. (“Sekisui House”), a leading homebuilder representing Japan with an establisheddevelopment and management track record also in the property development business. SHR was listed on theReal Estate Investment Trust Section of the Tokyo Stock Exchange, Inc. (“Tokyo Stock Exchange”) on December
3, 2014 (securities code: 3309).
Sekisui House Residential Investment Corporation (“SHI,” and collectively with SHR, the “Two Investment
Corporations”) was established on April 20, 2005 as an investment corporation investing primarily in residences
and retail properties, with the corporate name of JOINT REIT Investment Corporation, and listed on the Real
Estate Investment Trust Section of the Tokyo Stock Exchange on July 28, 2005. In March 2010, a collaboration
system was established with Sekisui House serving as the main sponsor and Spring Investment Co., Ltd. as joint
sponsor for the investment corporation, which was renamed from JOINT REIT Investment Corporation to Sekisui
House SI Investment Corporation in June 2010. Later, in June 2014, its Articles of Incorporation were revised to
set residences as the sole target of investment, and the corporate name was changed to Sekisui House SI
Residential Investment Corporation. Subsequently, in association with the shift to a structure in which Sekisui
House serves as the sole sponsor in March 2017, SHI was renamed to Sekisui House Residential Investment
Corporation in June 2017.
The Two Investment Corporations, each under the support of the Sekisui House Group(Note 1), had separately
conducted asset management to expand their assets and secure stable returns by utilizing their respective
strengths with the aim of continuous enhancement of unitholder value. However, intending to secure strong
returns and stability and growth of cash distributions through promoting a steady increase of assets undermanagement and endeavor to maximize unitholder value by further expanding the scale of their assets andincreasing their market presence and expanding a variety of opportunities for growth through utilizing the
integrated corporate strength of the Sekisui House Group, the Two Investment Corporations conducted anabsorption-type merger with SHR as the surviving corporation and SHI as the dissolving corporation (the“Investment Corporation Merger”), setting May 1, 2018 as the effective date (Note 2).
SHR’s investment policy is to conduct asset management that seeks to secure stable earnings over the medium
to long term and steady growth of its investment assets, with residential properties (Note 3) and commercial
properties(Note 4) as major investment targets.
(Note 1) “Sekisui House Group” refers to a group of companies comprised of Sekisui House and its consolidated subsidiaries and its
affiliates accounted for by the equity method. The same shall apply hereinafter.
(Note 2) In association with the Investment Corporation Merger, Sekisui House Asset Management, Ltd. (the “former SHAM”), theasset management company for SHI, and Sekisui House Asset Management, Ltd. (former name: Sekisui House Investment
Advisors, Ltd.) (“SHAM”), the asset management company for SHR, carried out an absorption-type merger as of the same dateas the effective date of the Investment Corporation Merger, with SHAM being the surviving company and the former SHAM
being the dissolving company, and changed the company name to the current one.
(Note 3) “Residential properties” refer to real estate whose principal use is residence (including student dormitories, company housing,furnished residences with appliances which do not fall under serviced apartments (*1) (*2)). The same shall apply hereinafter.
(*1) “Serviced apartments” refer to furnished residences with appliances where a dedicated operator provides certain services
to users. The same shall apply hereinafter.
(*2) Some serviced apartments may fall under apartment houses as defined in the Building Standards Act (Act No. 201 of 1950,
as amended) (the “Building Standards Act”). The same shall apply hereinafter.
(Note 4) “Commercial properties” refer to real estate whose principal use is for office buildings, hotels and retail and other properties(including serviced apartments, housing for elderly with service, fee-based homes for the aged, and daycare centers (*); thesame shall apply hereinafter.) and other non-residential business purposes. The same shall apply hereinafter.
(*) Some housing for elderly with service, fee-based homes for the aged, and daycare centers may fall under apartment houses
as defined in the Building Standards Act. The same shall apply hereinafter.

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(2) Management Environment and Management Performancea. Management Environment
During the fiscal period under review, the Japanese economy showed signs of recovery amid the alleviation of thesevere conditions caused by COVID-19.
Under these circumstances, in the real estate leasing market, residentials and office buildings which are
positioned by SHR as core assets in its portfolio, constitutes as of April 30, 2022 (the “end of the fiscal period
under review”) approximately 93% (acquisition price basis) of the portfolio. As for residential, demand for single
type for single persons, which is easily affected by changes in the employment environment, remained on aweakening trend, but overall occupancy rate remained stable as a result of focusing on tenant leasing activities,
such as relaxing of offer conditions, etc. As for the office buildings, although the office leasing market is showing
signs of movement, the trend to decrease office floor space resulted in a lack of strong growth in demand. This inturn resulted in vacancy rates to remain flat or to increase, and rent levels slightly declined. On the other hand,for hotels that make up about 7% of SHR’s portfolio (acquisition price basis), foreign visitors to Japan (estimatedby the Japan National Tourism Organization in April 2022) exceeded 0.1 million people for the first time in about
two years. However, the environment remained at a level of approximately 95% lower than the level in the samemonth of 2019, before the impact of COVID-19, and the harsh environment continued partly due to the effects of
the re-spread of COVID-19 variants.
Furthermore, in the real estate trading market, despite increasing uncertainty related to international affairs,
expected yields have remained at low levels as real estate investors maintain their positive stance toward highquality properties in Japan under the accommodative monetary policy outlined by the Bank of Japan.
b. Management Performance
Under the circumstances described in “a. Management Environment” above, SHR, with the aim of enhancing its
portfolio from the sponsors, Sekisui House and Sekisui House Group, and further strengthening its earnings base,acquired a total of three new properties (one of which was an additional acquisition) including one office building
developed by Sekisui House and two residential properties developed or owned by Sekisui House.
As a result, the number of properties SHR owned as of the end of the fiscal period under review was 119(comprising 111 residential properties and eight commercial properties) with an aggregate acquisition price (Note)of 563,886 million yen (257,766 million yen for residential properties and 306,120 million yen for commercial
properties).
Moreover, the occupancy rate of SHR’s investment assets as of the end of the fiscal period under review stood at
96.5% for residential properties, 98.3% for commercial properties and 97.0% for the entire portfolio against the
backdrop of the real estate leasing market as described above.
(Note) The “acquisition price” indicates the transaction price shown in the sales agreements for respective properties (excluding
consumption tax, local consumption tax and commission and other various expenses, rounded down to the nearest million yen).
For properties SHR succeeded from SHI through the Investment Corporation Merger, however, the value based on the appraisal
by real estate appraisers with April 30, 2018 as the appraisal date is used as the acquisition price, because the acceptance priceshould be the appraisal value upon the acquisition by SHR as such properties are accounted for by the purchase method with
SHR set as the acquiring corporation and SHI as the acquired corporation. The same shall apply hereinafter.

(3) Overview of Fund Procurementa. Issuance of New Investment Units
SHR issued 137,500 new investment units through a public offering on November 1, 2021, and 4,967 newinvestment units through third-party allotment on November 29, 2021. As a result, the total investment at theend of the fiscal period under review was 161,283 million yen, with a total number of investment units issued
and outstanding at 4,431,133 units.
b. Borrowings
SHR refinanced a total of 26,830 million yen with the aim of repaying borrowings due this fiscal period and alsofinanced short-term borrowings of 13,700 million yen on February 1, 2022, to finance the acquisition of trust
beneficiary interest in real estate and partial related expenses.
As a result, the balance of interest-bearing liabilities as of the end of the fiscal period under review is 263,642
million yen and the ratio of total interest-bearing liabilities to total assets (“LTV (total assets basis)”) is 45.5%.

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2

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c. Credit Rating
The following table sets forth the status of credit ratings of SHR as of the end of the fiscal period under review.
Credit Rating Agency

Rating TypeJapan Credit Rating Agency, Ltd.

Long-term issuer rating: AA(JCR)Rating outlook: Stable

Japan Credit Rating Agency, Ltd.

Bond rating: AA(JCR)Rating and Investment Information, Inc.

Issuer rating: AA-(R&I)

Rating outlook: Stable(4) Overview of Business Performance and Distributions
Results in the fiscal period under review are operating revenue of 14,756 million yen, operating income of 7,625
million yen and ordinary income of 6,746 million yen, resulting in net income of 6,745 million yen. In addition,
concerning cash distributions, SHR decided to distribute 7,524 million yen, which is the amount of
unappropriated retained earnings after adding reversal of reserve for temporary difference adjustments (187
million yen) and reversal of reserve for reduction entry (590 million yen) based on the application of special tax
treatment for investment corporations (Article 67-15 of the Act on Special Measures Concerning Taxation (ActNo. 26 of 1957, as amended) (the “Special Taxation Measures Act”)).

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2.

Status of Capital Increase, etc.
The following table sets forth the increase (/decrease) in unitholders’ capital and the total number of investment
units issued and outstanding for the last five years from the end of the fiscal period under review.
Unitholders’ capital(million yen)
Date

Event
Increase(Decrease)

Balance

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

Note

Balance

May 24, 2017

Public offering

9,661

109,70271,400965,400(Note 1)

June 12, 2017

Third-party allotment

487

110,1893,600

969,000(Note 2)

May 1, 2018

Split of investment units―

110,189

969,000

1,938,000(Note 3)

May 1, 2018

Allocation of investment
units through merger―

110,189

1,824,091

3,762,091(Note 4)

June 10, 2019

Public offering

37,162

147,351

501,500

4,263,591(Note 5)

July 9, 2019

Third-party allotment

1,858

149,21025,075

4,288,666(Note 6)

November 1, 2021

Public offering

11,652160,862

137,500

4,426,166(Note 7)

November 29, 2021

Third-party allotment

420

161,283

4,967

4,431,133(Note 8)(Note 1) New investment units were issued at an issue price of 139,912 yen (with the issue amount being 135,320 yen) per unit through apublic offering to procure funds for the acquisition of new properties.
(Note 2) New investment units were issued at an issue amount of 135,320 yen per unit by way of third-party allotment, with the proceeds
thereof intended to be used for the partial repayment of the short-term loans that had been taken up to finance the acquisition of
the new properties.
(Note 3) SHR implemented a two-for-one split of investment units with April 30, 2018 as the record date and May 1, 2018 as the effective
date.
(Note 4) Upon the Investment Corporation Merger, 1.65 SHR units following the investment unit split were allocated to every SHI unit on
May 1, 2018 and 1,824,091 investment units were newly issued.
(Note 5) New investment units were issued at an issue price of 76,537 yen (with the issue amount being 74,103 yen) per unit through apublic offering to procure funds for the acquisition of new properties.
(Note 6) New investment units were issued at an issue amount of 74,103 yen per unit by way of third-party allotment, with the proceeds
thereof intended to be used for the partial repayment of the short-term loans that had been taken up to finance the acquisition of
the new properties.
(Note 7) New investment units were issued at an issue price of 87,574 yen (with the issue amount being 84,744 yen) per unit through apublic offering to procure funds for the acquisition of new properties.
(Note 8) New investment units were issued at an issue amount of 84,744 yen per unit by way of third-party allotment, with the proceeds
thereof intended to be used for the acquisition of new properties.

[Changes in Market Price of Investment Securities]
The following table sets forth the fiscal period high and low (closing price) on the Tokyo Stock Exchange Real
Estate Investment Trust Section on which SHR investment securities are listed.
11th fiscal period

12th fiscal period

13th fiscal period

14th fiscal period

15th fiscal period

From: Nov. 1, 2019
To: Apr. 30, 2020

From: May 1, 2020
To: Oct. 31, 2020

From: Nov. 1, 2020
To: Apr. 30, 2021

From: May 1, 2021
To: Oct. 31, 2021

From: Nov. 1, 2021
To: Apr. 30, 2022

High (yen)99,70078,70093,10098,60086,700Low (yen)

47,15062,50072,70086,20073,600Fiscal period

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3.

Performance of Distribution, etc.
Distribution per unit for the fiscal period under review (the 15th fiscal period) is 1,698 yen. The policy is to
distribute 7,524 million yen, which is the amount of unappropriated retained earnings after adding reversal ofreserve for temporary difference adjustments (187 million yen) and reversal of reserve for reduction entry (590
million yen) in application of the special treatment of corporation tax under which the amount equivalent to
distribution of earnings is deductible from the taxable income of investment corporations as deductible expenses(Article 67-15 of the Special Taxation Measures Act).

Fiscal period

11th fiscal period 12th fiscal period 13th fiscal period 14th fiscal period 15th fiscal period
From: Nov. 1, 2019 From: May 1, 2020 From: Nov 1, 2020 From: May 1, 2021 From: Nov 1, 2021
To: Apr. 30, 2020 To: Oct. 31, 2020 To: Apr. 30, 2021 To: Oct. 31, 2021 To: Apr. 30, 2022

Total amount of unappropriatedretained earnings (thousand yen)

6,991,331

6,992,995

7,103,009

8,520,020

6,745,643

Amount of accumulated earnings(thousand yen)－－

103,708

1,195,848―

Total amount of cash distribution(thousand yen)

7,140,628

7,226,402

7,183,515

7,732,464

7,524,063[1,665][1,685][1,675][1,803][1,698]

Total amount of distribution of
earnings out of the total amount ofcash distribution(thousand yen)

7,140,628

7,226,402

7,183,515

7,732,464

7,524,063[Distribution of earnings per unit](yen)[1,665][1,685][1,675][1,803][1,698]

Total amount of refund ofinvestment in capital out of thetotal amount of cash distribution(thousand yen)

―

―

―

―

―

[Amount of refund of investment incapital per unit] (yen)

[―]

[―]

[―]

[―]

[―]

Total distribution amount fromreserve for temporary difference
adjustments out of total amount ofrefund of investment in capital(thousand yen)

―

―

―

―

―

[Distribution amount from reserve
for temporary difference
adjustments per unit out of amountof refund of investment
in capital per unit] (yen)

[―]

[―]

[―]

[―]

[―]

Total distribution amount from
distribution reducing unitholders’capital for tax purpose out of total
amount of refund of investment incapital (thousand yen)

―

―

―

―

―

[Distribution amount from
distribution reducing unitholders’capital for tax purpose out of
amount of refund of investment incapital per unit] (yen)

[―]

[―]

[―]

[―]

[―]

[Distribution per unit] (yen)

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5

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4. Future Management Policy(1) Future Trends Outlook
It is expected that the Japanese economy will recover, partly due to the effects of various policies, as the Japanese
government takes all possible measures to combat COVID-19 and economic and social activities become
normalized. However, amid concerns over the impact of the resurgence of infections in China and the prolonged
situation in Ukraine, it is necessary to pay close attention to the downside risks due to constraints in supply
chain, rising raw material prices, and changes in the financial and capital markets. In addition, it is necessary
to closely monitor the effects of trends in infection.
Against this background, although there are signs of improvement in employment, the residential sector, whichis the living hub of the real estate leasing market, is still being affected by COVID-19. Therefore, it is necessary
to closely monitor the situation in the influx of population in the Tokyo metropolitan area. Additionally, it isbelieved that housing units with relatively large floor area will continue to perform well.
Concerning office buildings, which are the operation bases in the real estate leasing market, SHR anticipatesthat rents will remain weak due to the trend of decreasing office floor space to accommodate the expansion of
remote work, along with the new oversupply of buildings in the future.
As for hotels, the Japanese government has announced a policy of gradually reviewing border countermeasuresagainst COVID-19, and SHR believes that it is necessary to closely monitor the status of infections in eachcountry, changes in immigration regulations, and international conditions.
In the real estate transaction market, SHR believes that the situation in which expected yields remain at low
levels will continue for the foreseeable future amid accommodative financial conditions due to COVID-19.
(2) Future Management Policy and Challenges to Address
SHR will continue to focus on prime properties―high-quality residential properties and commercial properties
situated in strategic locations―as its core investment targets among other main investment targets. By
implementing growth strategies that take full advantage of the real estate development and operation
capabilities and other strengths of the Sekisui House Group, which has established an extensive track record ofdeveloping and operating residential properties and commercial properties, SHR will seek to secure stableearnings over the medium- to long-term and steady growth of its investment assets and thereby aim to maximize
unitholder value.
On the other hand, SHR will endeavor to expand its asset size by exploring investment opportunities through theinitiatives of SHAM on its own.
Concerning main investment target areas in Japan for residential properties, SHR has set Greater Tokyo (Note 1)
as the core investment area with a focus on Tokyo 23 wards, which are believed to have a number of prime
properties that offer locations accommodating residents’ needs as well as excellent basic functions as a residence
including comfort and safety and such and are expected to see strong leasing demand and supplies of prime
properties. In addition, SHR will invest in other major cities throughout Japan outside of Greater Tokyo including
government designated cities as well as their surrounding commutable areas, where networks of Sekisui Houseand Six Sekisui House Real Estate Companies(Note 2) can be fully utilized.
SHR has set the three major metropolitan areas(Note 1) with three large cities, namely the Tokyo 23 wards, Osaka
City and Nagoya City, all of which SHR has knowledge in the course of developments by Sekisui House, as thecore investment areas in Japan for commercial properties, with a focus on the three large cities, in which SHR
can expect stable management against the backdrop of solidified demand resulting from being bases for tenantcompanies’ business activities. In addition, major cities throughout Japan other than the three major
metropolitan areas are set as investment areas.
SHR has executed a sponsor support agreement with Sekisui House. This agreement provides for utilization of
the urban redevelopment business track record and know-how of Sekisui House, allowing SHR to seek fromSekisui House property acquisition support for external growth (pipeline support). Specifically, such support will(a) grant SHR preferential negotiation rights with regard to the sale of domestic real estate, etc. owned ordeveloped by Sekisui House, (b) provide SHR with information on real estate, etc. owned or developed in Japanby third parties, (c) provide SHR with warehousing functions, and (d) provide SHR with support for theredevelopment of owned properties.
Furthermore, SHR has concluded agreements concerning preferential negotiation rights (and others) with theSix Sekisui House Real Estate Companies. Thus, particularly with residential properties, SHR will be able to－6－receive support in acquiring properties for external growth, such as granting of preferential negotiation rights
regarding sale of domestic real estate, etc. owned or developed by the Six Sekisui House Real Estate Companies.
Sekisui House and Sekisui House Real Estate Group(Note 3) possess (a) property management (“PM”) skills basedon their relationship with tenants, (b) know-how as a real estate developer to maintain/improve real estate value
through large-scale repair, renovation/value enhancement, redevelopment, etc., and (c) know-how on developing
various types of master leasing businesses. In relation to management of owned assets, by concluding a sponsor
support agreement with Sekisui House, SHR and SHAM can seek (i) technologies and know-how that contributeto the improvement of tenant satisfaction or other factors, including energy efficiency and eco-friendliness, that
contribute to the renovation/value enhancement of properties, (ii) personnel support, including provision of knowhow required for the operation of SHR, and (iii) support in areas such as negotiation of master lease agreementswith regard to commercial properties.
(Note 1) The “three major metropolitan areas” refer to “Greater Tokyo,” the “Osaka area” and the “Nagoya area,” where “Greater
Tokyo” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture, the “Osaka area” refers to Osaka
Prefecture, Kyoto Prefecture, Hyogo Prefecture and Nara Prefecture and the “Nagoya area” refers to Aichi Prefecture. The
same shall apply hereinafter.
(Note 2) “Six Sekisui House Real Estate Companies” is a collective name for Sekisui House Real Estate Tohoku, Ltd., Sekisui House
Real Estate Tokyo, Ltd., Sekisui House Real Estate Chubu, Ltd., Sekisui House Real Estate Kansai, Ltd., Sekisui House Real
Estate Chugoku&Shikoku, Ltd. and Sekisui House Real Estate Kyushu, Ltd., which are wholly-owned subsidiaries of Sekisui
House Real Estate Holdings, Ltd. ,which is a wholly-owned subsidiary of Sekisui House, and are core companies of realestate unit of the Sekisui House Group operating nationwide. The same shall apply hereinafter.
(Note 3) “Sekisui House Real Estate Group” refers to a group of companies comprised of Six Sekisui House Real Estate Companies as
the core, and of its subsidiaries and affiliates. The same shall apply hereinafter.

(3) Financial Strategy
SHR has adopted as its policy the conduct of stable and sound financial operations in order to secure stableearnings over the medium to long term and enhance unitholder value. Specifically, the policy is to form strong
and stable business relationships with leading domestic financial institutions, centering on megabanks, bolsteredby the creditworthiness of the sponsor, Sekisui House, and also to reduce refinancing risks and risks offluctuations in interest rates by exploring the extension of borrowing periods and working to diversify dates for
repayment, etc., while pursuing the optimum balance between fixed-rate and floating-rate debts.
In addition, with regard to LTV (total assets basis), although SHR has the policy to set the figure at 60% as its
upper limit, SHR will control the figure at mid-40%, which is a conservative level, setting the upper limit for thetime being at around 50% with a focus on securing its funding capabilities.
Furthermore, SHR will work to diversify its sources for direct and indirect financing, such as by issuinginvestment corporation bonds, in comprehensive consideration of the market environment, SHR’s financial
standing and other factors, while continuing its endeavors for stable and sound financial operations.

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5. Significant Subsequent Events(1) Disposition of Asset
On June 15, 2022, SHR resolved to dispose the quasi co-ownership interest in trust beneficiary interest of one
property, and entered a sale and purchase contract as follows.
Approximately 613 million yen will be recorded as a gain on disposition for the fiscal period ending October 31,
2022 (from May 1, 2022 to October 31, 2022) by this disposition.
Property name:

The Ritz-Carlton, Kyoto

Type of use:

Hotel

Location:

Kyoto-shi, Kyoto

Planned disposition price:

23,000 million yen (Note)

Sale and purchase contract date:June 15, 2022

Planned disposition date:August 2, 2022

Buyer:

Sekisui House, Ltd.

(Note) “Planned disposition price” is the sale and purchase price stated in the sale and purchase contract (excluding consumption tax
and local consumption tax and commission and other various expenses; rounded down to the nearest million yen).

(2) Determination of Matters Pertaining to the Investment Units Buyback Program
SHR resolved at the Board of Directors meeting held on June 15, 2022, the investment units buyback program(“the Buyback”) based on the provisions of Article 80-2 of the Act on Investment Trusts and Investment
Corporations, which is applied by replacing the terms and phrases pursuant to the provisions of Article 80-5,
Paragraph 2 of the said Act, as follows.
Moreover, all of the acquired investment units are scheduled to be cancelled during the fiscal period ending
October 31, 2022.
a. Reason for the Buyback
After comprehensively considering the level of the investment unit price, cash on hand, financial condition,market environment, etc., SHR has determined that increasing the NAV per unit through the acquisition andcancellation of its own investment units and improving the distribution per unit (“DPU”) will contribute toimproving unitholder value.
b. Details of Matters Concerning the Buyback
Planned total number of investment
Up to 70,000 units
units
to be acquired:
Planned total acquisition price of the

Up to 4,000 million yen

investment units:
Acquisition method:

Market purchase via Tokyo Stock Exchange based on adiscretionary transaction contract with a securities company

Acquisition period:

From June 16, 2022 to September 30, 2022

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(Reference Information)(1) Acquisition of Assets
SHR decided to acquire two residentials dated June 15, 2022
Property name

Type ofuse

Planned acquisition
price (million yen)

Location
Nakano-ku,

Prime Maison
EGOTANOMORI

Shinjuku-ku,

Prime Maison Waseda doriAugust 2, 2022

SekisuiHouse, Ltd.

2,200

Tokyo
Total

(2)

Seller10,500Tokyo
Residence

Planned acquisitiondate

12,700－－Acquisition of Asset (Equity Interest in an Anonymous Association)
SHR has decided to acquire equity interest in an anonymous association dated July 28, 2022.
By obtaining the equity interest in the anonymous association, SHR is scheduled to acquire preferential
negotiating rights for the real estate subject to trust.
Property name

Underlying asset

Location

Equity interest inanonymous association
Godo Kaisha Gemini1

Akasaka Garden
City (Note)

Minato-ku,

Planned investment
amountEquityinterest ratio

480 million yen

12.4%

Tokyo

Planned acquisition
dateAugust 1, 2022

(Note) Underlying asset refers to 34.55% quasi co-ownership interest of the trust beneficiary interest in real estate regarding thecompartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor underground through 4th floor above
ground and 11th floor through 19th floor above ground of the “Akasaka Garden City” building, as well as the accompanying right ofsite (ratio of right of site: 662,768/1,000,000 (or approximately 66.3%)), and has not yet been acquired by SHR. Of the “Akasaka
Garden City” building, SHR holds 65.45% quasi co-ownership interest of the trust beneficiary interest in real estate regarding thecompartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor underground through 4th floor above
ground and 11th floor to 19th floor above ground as well as the accompanying right of site (ratio of right of site: 662,768/1,000,000(approximately 66.3%)), and the trust beneficiary interest in real estate regarding the compartmentalized ownership interest in allof the exclusively-owned portions of the 5th to 9th floor as well as the accompanying right of site (ratio of right of site) :273,490/1,000,000 (approximately 27.3%), and 96.05% quasi co-ownership interest of the trust beneficiary interest in real estate
regarding the compartmentalized ownership interest in all of the exclusively-owned portions of the 10th floor and the accompanying
right of site (ratio of right of site: 54,698/1,000,000 (approximately 5.5%)).

(3)

Borrowing of Funds (Positive Impact Finance)
SHR conducted borrowing of funds through Positive Impact Finance on May 31, 2022 to fund partial early
repayment (which was executed on the same day) of a short-term borrowing totaling 13,700 million yen
procured on February 1, 2022, as follows.

Category

Lenders(Note 1)
Sumitomo Mitsui
Trust Bank,
LimitedMizuho Bank,
Ltd.

Longterm

Borrowingamount(mm yen)Interest
rate(Note 2)
(Note 3)

Drawdown
date

Borrowingbased onindividual
loan
agreement,
dated May26, 2022.

1,100
400

Mizuho Trust &Banking Co., Ltd.

300

Resona Bank,
Limited.

300

The Norinchukin
Bank

400

THE BANK OFFUKUOKA, LTD.

300

0.665%

May 31,
2022－

9

Borrowing
methodThe lenders
under theloan
agreement
are asindicated to－

Repayment
date(Note 4)

Repayment
method(Note 5)

Security

May 31,2029

Lump-sum
repayment
at maturity

UnsecuredandUnguaranteedShinkin Central
Bank

300

The 77 Bank, Ltd.

300

The Yamaguchi
Bank, Ltd.

400

The Shizuoka
Bank, Ltd.

300

The Hiroshima
Bank, Ltd.

300

Aozora Bank, Ltd.

300

Nippon Life
Insurance
Company
The Joyo Bank,
Ltd.
Total

the left ofthis table.

1,000
300
6,000

－

－

－

－

－

－

(Note 1) Sumitomo Mitsui Trust Bank, Limited is the arranger of the above borrowings.
(Note 2) The borrowing expenses and other charge payable to the lenders are not included.
(Note 3) The first interest payment date will be the last day of November 2022. Subsequent interest payment dates will be the last day of
every six months and the principal repayment date. Where the relevant date is not a business day, such date will be theimmediately following business day or (if the immediately following business day falls into the next calendar month) the
immediately preceding business day.
(Note 4) Where the repayment date is not a business day, such date will be the immediately following business day or (if the immediately
following business day falls in the next calendar month) the immediately preceding business day.
(Note 5) SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of the borrowings(in whole or in part), in the period between the drawdown date and the repayment date.

(4)

Borrowing of Funds
SHR conducted borrowing of funds on July 11, 2022 for the redemption of the Sekisui House Reit, Inc. Second
Series Unsecured Investment Corporation Bonds (with pari passu clause among specified investment
corporation bonds) (the “Second Series Bonds”) which was due for redemption on July 13, 2022 as follows.
As a result of these borrowings, the Second Series Bonds were redeemed on the same day.

Category

Lenders(Note 1)

MUFG Bank, Ltd.
(Note 8)Longterm

Mizuho Bank,
Ltd.

Sumitomo Mitsui
Banking
Corporation

Total(Note 1)
(Note 2)
(Note 3)

Borrowingamount(mm yen)Interest rate
(Note 2)
(Note 3)(Note 4)(Note 5)

Drawdown
date

1,160

Base rate(JBA 1-month
960
Japanese Yen
TIBOR) plus
0.190%

July 11,
2022

880

3,000

－

－

Borrowing
methodRepayment
date(Note 6)

Borrowingbased onindividual
loan
agreement,
dated July 6,
2022.
The lenders July 11, 2024
under theloan
agreement
are asindicated to
the left of thistable.
－－

Repayment
method(Note 7)

Security

Lump-sum Unsecured
repayment
andatUnguarantee
maturityd－－

MUFG Bank, Ltd., Mizuho Bank, Ltd., and Sumitomo Mitsui Banking Corporation are arrangers of the Borrowings.
The borrowing expenses and other charge payable to the lenders are not included.
The base rate applicable to the calculation period for the interest payable on an interest payment date shall be the Japanese Yen
TIBOR (Tokyo Inter Bank Offered Rate), corresponding to the calculation period of the interest, two business days prior to theimmediately preceding relevant interest payment date. The Japanese Yen TIBOR is published by the Japanese Bankers

－

10

－

(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)(5)

Association (JBA) TIBOR Administration. The base rate is subject to review every interest payment date. Where no rate that
corresponds to the interest calculation period exists, the base rate shall be that which corresponds to the concerned period
calculated based on the method provided for in the relevant individual loan agreement. For changes in the base rate (being theJapanese Yen TIBOR published by JBA), please check the website of JBA TIBOR Administration.
The first interest payment date will be the last day of July 2022. Subsequent interest payment dates will be the last day of every
month and the principal repayment date. Where the relevant date is not a business day, such date will be the immediately
following business day or (if the immediately following business day falls into the next calendar month) the immediately precedingbusiness day.
The first interest calculation period is from July 11, 2022 to the last day of July 2022.
Where the repayment date is not a business day, such date will be the immediately following business day or (if the immediately
following business day falls in the next calendar month) the immediately preceding business day.
SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of the Borrowings(in whole or in part), in the period between the drawdown date and the repayment date.
The borrowing from MUFG Bank, Ltd. is ESG Loan for J-REIT.

Borrowing of Funds
SHR conducted borrowing of funds for use as repayment funds of the long-term borrowings (7,000 million yen)which was due for repayment on July 13, 2022, as follows.

Category

Lenders(Note 1)
Sumitomo Mitsui
Trust Bank,
Limited

550

Mizuho Trust &Banking Co., Ltd.

350

Resona Bank,
Limited.

500

The Norinchukin
Bank

400

MUFG Bank, Ltd.

(Note 6)

Longterm

Mizuho Bank,
Ltd.
Sumitomo Mitsui
Banking
Corporation
Sumitomo Mitsui
Trust Bank,
Limited(Note 3)(Note 4)(Note 5)(Note 6)

Interest rate
(Note 2)
(Note 3)

Drawdown
date

Borrowing
method1,400
1,050
July 13,
2022

600

500
0.855%
300

Resona Bank,
Limited.

450

Development
Bank of Japan
Inc.

550

The Norinchukin
Bank

350
7,000

Repayment
date(Note 4)

Repayment
method(Note 5)

Security

February 26,2027

0.550%

Mizuho Trust &Banking Co., Ltd.

Total
(Note 1)
(Note 2)

Borrowingamount(mm yen)－－

Borrowingbased onindividual
loan
agreement,
dated July 8,
2022.
The lenders
under theloan
agreement
are asindicated to
the left of thistable.

－

Lump-sum Unsecured
repayment
andatUnguarantee
maturityd

February 28,
2030

－

－

－

MUFG Bank, Ltd., Mizuho Bank, Ltd., and Sumitomo Mitsui Banking Corporation are arrangers of the Borrowings.
The first interest payment date will be the last day of February 2023, and subsequent interest payment dates will be the last
day of every six months thereafter and the principal repayment date. Where the relevant date is not a business day, such date
will be the immediately following business day or (if the immediately following business day falls into the next calendar month)the immediately preceding business day.
The first interest calculation period is from July 13, 2022 to the last day of February 2023.
Where the repayment date is not a business day, such date will be the immediately following business day or (if the immediately
following business day falls in the next calendar month) the immediately preceding business day.
SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of the
Borrowings (in whole or in part), in the period between the drawdown date and the repayment date.
The borrowing from MUFG Bank, Ltd. is ESG Loan for J-REIT.

－

11

－

Outline of the Investment Corporation
1.

Status of Capital
Fiscal period

As of the end of As of the end of As of the end of As of the end of As of the end of
11th fiscal period 12th fiscal period 13th fiscal period 14th fiscal period 15th fiscal period(Apr. 30, 2020)(Oct. 31, 2020)(Apr. 30, 2021)(Oct. 31, 2021)(Apr. 30, 2022)

Total number of investment units

20,000,000

20,000,000

20,000,000

20,000,000

20,000,000

4,288,666

4,288,666

4,288,666

4,288,666

4,431,133

Unitholders’ capital (million yen)

149,210

149,210

149,210

149,210161,283

Number of unitholders (persons)

19,23019,27918,942

18,637

20,876authorized (units)
Total number of investment units
issued and outstanding (units)

2.

Matters Concerning Investment Units
Of the unitholders as of the end of the fiscal period under review, the following are the top ten unitholders interms of investment unitholding ratio.
Number ofunits owned(units)Name

Percentage of
owned units tototal units issued
and outstanding(%)

Custody Bank of Japan, Ltd. (Trust Account)

977,577

22.06

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

712,508

16.08

Sekisui House, Ltd.

200,750

4.53

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

185,872

4.19

Custody Bank of Japan, Ltd. (Securities Investment Trust Account)

150,965

3.41

STATE STREET BANK WEST CLIENT - TREATY 505234

63,356

1.43

SSBTC CLIENT OMNIBUS ACCOUNT

55,5781.25

JP MORGAN CHASE BANK 385781

49,503

1.12

SMBC Nikko Securities Inc.

49,026

1.11

THE SHINKUMI FEDERATION BANK

45,7261.03

2,490,861

56.21

Total

(Note) Percentage of owned units to total units issued and outstanding is rounded to the nearest second decimal place.

－

12

－

3. Matters Concerning Directors, etc.
(1) Name and other information of the executive director, supervisory directors and an independent auditor
The following table sets forth information on the executive director, supervisory directors and an independent
auditor of SHR.
Position

Executive
DirectorName

Key concurrently held position, etc.

Director,

Atsuhiro Kida

Sekisui House Asset Management, Ltd.

Shigeru Nomura

Supervisory

Total amount of compensationfor each position during period(thousand yen)

Certified Public Accountant, President, Shigeru
Nomura Certified Public Accountant Office―

900

Tatsushi Omiya

Lawyer, Lex Law Office900

Yu YadaLawyer, HIFUMI Law

900

Director(Note 2)

Certified Public Accountant, Rei Yamashita

Rei Yamashita

Certified Public Accountant Office

Independent

Ernst & Young

AuditorShinNihon LLC

900
17,400―(Note 3)(Note 1) None of the executive director or supervisory directors owns SHR investment units in their own name or in the name of anotherperson. In addition, supervisory directors may be officers of other corporations other than those stated above, but none of suchcorporations, including those stated above, has vested interest in SHR.
(Note 2) Supervisory Directors Shigeru Nomura and Tatsushi Omiya resigned on January 31, 2022 due to the expiration of their terms ofoffice. In addition, Yu Yada and Rei Yamashita were appointed as new supervisory directors as of February 1, 2022.
(Note 3) The total amount of compensation for the independent auditor, as stated above, is an approximation and includes compensation
for auditing matters related to English financial statements.

(2) Policy for determining whether to dismiss or refuse the reappointment of independent auditor
Dismissal of the independent auditor is subject to consideration at a meeting of the board of directors of SHR inaccordance with the provisions of the Investment Trusts Act. Refusal of reappointment of the independent auditor
is also subject to consideration at a meeting of the board of directors of SHR by taking into account the quality ofaudits, amount of audit fee and various other circumstances in a comprehensive manner.

4.

Matters Concerning the Director’s Liability Insurance Contract
The directors’ liability insurance contract concluded by SHR is as follows.
Scope of insured person

Overview of the contents of the Director’s Liability Insurance Contract(Overview of Insured Events Subject to Compensation)
SHR concluded a directors' liability insurance contract with an insurance company as set forth in
Article 116-3(1) of the Investment Trust Act, and covers any damage that may arise when theinsured assumes liability for the execution of its duties or receives a claim for the pursuit of suchliability.

All Executive Directors andSupervisory Directors(Ratio of Insurance Premiums to be Borne)
All insurance premiums for all insured persons are borne by SHR(Measures to Ensure that the Appropriateness of the Execution of Duties by Directors, etc. is not
Impaired)
Up to 100 thousand yen for each insured person and up to 1 million yen for each series of liability
are set as the immunity amount.

－

13

－

5.

Asset Management Company, Asset Custodian and Administrative AgentsThe following table sets forth information on the asset management company, asset custodian and administrative
agents of SHR as of the date of this document.
Entrustment category

Name

Asset Management Company

Sekisui House Asset Management, Ltd.

Asset Custodian

Mitsubishi UFJ Trust and Banking Corporation

Administrative Agent (Transfer Agent)Mizuho Trust & Banking Co., Ltd.

Administrative Agent (Administrative Agent for Operation of
Administrative Instruments)
Administrative Agent (Administrative Agent for Investment
Corporation Bonds)－

Mitsubishi UFJ Trust and Banking Corporation

MUFG Bank, Ltd.

14－

Condition of Investment Assets
1.

Composition of Assets of the Investment Corporation
The following table sets forth the composition of assets of SHR as of the end of the fiscal period under review.

Type of asset

Asset category

Geographical area, etc.

As of the end of 14th fiscal
period(Oct. 31, 2021)
Total amount As a percentage
heldof total assets(million yen)(%)
(Note 1)
(Note 2)As of the end of 15th fiscal
period(Apr. 30, 2022)
Total amount As a percentage
heldof total assets(million yen)(%)
(Note 1)
(Note 2)

Greater Tokyo

181,97132.7

196,684

33.9

Other areas

56,50910.2

56,158

9.7

Three major
metropolitan areas

276,72549.8

297,294

51.3

―

―

―

―

Total of real estate in trust

515,206

92.7

550,137

94.9

Deposits and other assets

40,438

7.3

29,794

5.1

Total amount of assets

555,644100.0

579,931100.0

Residential
properties
Real estate intrust
Commercial
properties

Other areas(Note 1) “Total amount held” is the carrying amount (or, for real estate in trust, the depreciated book value) as of the end of each fiscal period,
rounded down to the nearest million yen.
(Note 2) Figures under the heading “As a percentage of total assets” have been rounded to the nearest first decimal place.
(Note 3) SHR does not own any overseas real estate, etc. as of the end of the fiscal period under review.

2.

Major Portfolio Assets
The following table sets forth an overview of the major portfolio assets (top ten properties by book value at the end of
period) of SHR as of the end of the fiscal period under review.

Leased area(m2)
(Note 3)

Occupancy
rate(%)(Note 4)As apercentage of
total
propertyrelated
operatingrevenue(%) (Note 5)

38,577.99

38,051.07

98.6

12.5

Officebuilding

50,126

21,735.43

19,432.79

89.4

6.4

Officebuilding

Gotenyama SH Building

49,46619,999.97

19,999.97

100.0

7.4

Officebuilding

HommachiCity

42,301

29,657.53

29,657.53

100.0

8.8

Officebuilding

Hommachi Garden City
(Office building portion) (Note 7)

36,24817,006.94

17,006.94

100.0

6.1

Officebuilding

The Ritz-Carlton, Kyoto (Note 8)

22,11911,496.08

11,496.08

100.0

1.5

Hotel

Hommachi Garden City
(Hotel portion) (Note 7)

16,75918,092.98

18,092.98

100.0

2.7

Hotel

Prime Maison Nakameguro

10,224

6,033.98

5,754.09

95.4

0.8

Residence

Esty Maison Ojima

8,298

9,905.97

9,229.79

93.2

1.6

ResidencePrime Maison Shirokanedai
Tower

7,916

6,772.89

6,571.08

97.0

1.6

Residence

313,386

179,279.76

175,292.32

97.8

49.3

―

Name ofreal estate, etc.

Book value
at the end of
period(million yen)
(Note 1)

Garden City Shinagawa
Gotenyama

69,924

Akasaka Garden City (Note 6)

Minami

Total

GardenLeasablearea(m2)(Note 2)－

15－

Usage type(Note 1) “Book value at the end of period” refers to the depreciated book value of each property as of the end of the fiscal period under review,rounded down to the nearest million yen. The same shall apply hereinafter.
(Note 2) “Leasable area” refers to the floor area presumably available for leasing based on the lease agreement or building drawing, etc. foreach property that is valid as of the end of the fiscal period under review, rounded down to the second decimal place. In cases where
the properties SHR owns are co-ownership interest or quasi co-ownership interest of trust beneficiary interests in real estate forrespective properties, the figure indicates the value obtained by multiplying the leasable area of real estate or real estate in trust (orthe leasable area of exclusively-owned portions for properties under compartmentalized ownership interest) by the ratio of theownership interest owned by SHR or trustees. The same shall apply hereinafter.
(Note 3) “Leased area” refers to the sum total of the leased area indicated in the respective lease agreements, which are valid as of the end of
the fiscal period under review, with the end tenants for each of the properties or the leased area based on building drawings. However,the leasable area of each property is indicated in case fixed-rent type master lease agreements have been concluded with the master
lease companies, regardless of whether lease agreements have been concluded with the end tenants. For Akasaka Garden City and
The Ritz-Carlton, Kyoto, the figure indicates the area corresponding to the portions owned by SHR. The same shall apply hereinafter.
(Note 4) “Occupancy rate” refers to the ratio of leased area to leasable area of each property as of the end of the fiscal period under review,rounded to the nearest first decimal place. The figure indicated in the “Total” column indicates the ratio of the sum total of leased
area of each property to the sum total of leasable area of each property, rounded to the nearest first decimal place.
(Note 5) Figures under the heading “As a percentage of total property-related operating revenue” indicate the ratio of property-related
operating revenue of each property for the fiscal period under review to total property-related operating revenue of each property of
SHR’s entire portfolio for the fiscal period under review, rounded to the nearest first decimal place.
(Note 6) For “Akasaka Garden City”, as of June 10, 2019, SHR owned 65.45% quasi co-ownership interest of trust beneficiary interest in realestate regarding the compartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor under groundthrough 4th floor above ground and 11th floor through 19th floor above ground of the building, as well as the accompanying right ofsite (ratio of right of site: 662,768/1,000,000 (or approximately 66.3%)). As of November 1, 2021, SHR acquired the trust beneficiaryinterest in all of the exclusively-owned portions of the 5th floor through 9th floor above ground of the building, as well as theaccompanying right of site (ratio of right of site: 273,490/1,000,000 (or approximately 27.3%)) and in 96.05% of co-ownership of all of
the exclusively-owned portions of the 10th floor above ground of the building, as well as the accompanying right of site (ratio of rightof site: 54,698/1,000,000 (or approximately 5.5%)) (hereinafter sometimes referred to as “Akasaka Garden City (additional acquisition
portion)”), and the figures indicate the value corresponding to the portions owned by SHR. The same shall apply hereinafter.
(Note 7) “Hommachi Garden City” comprises the portions used as office building and retail property (“Hommachi Garden City (Office building
portion)”) and the portions used as a hotel (“Hommachi Garden City (Hotel portion)”.) In this document, the overview and otherinformation regarding the property may be described separately for the Office building portion and the Hotel portion. The same shallapply hereinafter.
(Note 8) For “The Ritz-Carlton, Kyoto”, SHR owns 49% quasi co-ownership interest of trust beneficiary interest in real estate for the property
as of the end of the fiscal period under review. The figures indicate the value corresponding to the portions SHR owns. The same shallapply hereinafter.

－

16

－

3.

Details of Assets (Real Estate, etc.) in the Portfolio
The following table lists an overview of the properties owned by SHR as of the end of the fiscal period under review.

Usage
type

Property
number(Note 1)Name ofreal estate, etc.

Location(Note 2)Type of ownershipBook value
at the end of
period(million yen)

Estimatedvalue at theend ofperiod(million yen)
(Note 3)

Residence

R-001

Esty Maison Ginza

Chuo-ku, Tokyo

Real estate trust
beneficiary interests

6,604

7,550

R-002

Esty Maison Azabunagasaka

Minato-ku, Tokyo

Real estate trust
beneficiary interests

1,765

1,940

R-003

Esty Maison Ebisu II

Shibuya-ku, Tokyo

Real estate trust
beneficiary interests

2,020

2,370

R-004

Esty Maison Ebisu

Shibuya-ku, Tokyo

Real estate trust
beneficiary interests

917

920

R-005

Esty Maison Kanda

Chiyoda-ku, Tokyo

Real estate trust
beneficiary interests

1,548

1,860

R-006

Esty Maison Kitashinjuku

Shinjuku-ku, Tokyo

Real estate trust
beneficiary interests

1,533

1,800

R-007

Esty Maison
Asakusakomagata

Taito-ku, Tokyo

Real estate trust
beneficiary interests

2,082

2,470

R-008

Esty Maison Kawasaki

Kawasaki-shi,
Kanagawa

Real estate trust
beneficiary interests

2,384

2,770

R-010

Esty Maison Kameido

Koto-ku, Tokyo

Real estate trust
beneficiary interests

1,489

1,880

R-011

Esty Maison Meguro

Meguro-ku, Tokyo

Real estate trust
beneficiary interests

1,070

1,320

R-012

Esty Maison Sugamo

Toshima-ku, Tokyo

Real estate trust
beneficiary interests

1,590

1,840

R-013

Esty Maison Kyobashi

Osaka-shi, Osaka

Real estate trust
beneficiary interests

2,932

3,120

R-014

Esty Maison Hakuraku

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

884

976

R-015

Esty Maison Minamihorie

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,118

1,140

R-016

Esty Maison Gotanda(Note 4)

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

3,033

3,510

R-017

Esty Maison Oisendaizaka

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,710

3,010

R-018

Esty Maison
Shinagawa Seaside

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,112

2,470

R-019

Esty Maison Minamiazabu

Minato-ku, Tokyo

Real estate trust
beneficiary interests

1,285

1,380

R-021

Esty Maison Kawasaki II

Kawasaki-shi,
Kanagawa

Real estate trust
beneficiary interests

1,894

2,430

R-022

Esty Maison Azabujuban

Minato-ku, Tokyo

Real estate trust
beneficiary interests

2,710

3,040

R-023

Esty Maison Itabashihoncho

Itabashi-ku, Tokyo

Real estate trust
beneficiary interests

979

1,030

R-027

Esty Maison
Musashikoyama(Note 5)

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,010

1,190

R-028

Esty Maison Sendagi(Note 6)

Bunkyo-ku, Tokyo

Real estate trust
beneficiary interests

677

801

R-030

Esty Maison Hakatahigashi

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,210

2,610

R-033

Prime Maison
Musashinonomori

Kodaira-shi, Tokyo

Real estate trust
beneficiary interests

1,771

2,180

R-034

Prime Maison Higashisakura

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,422

1,700

R-035

Prime Maison Kayabakoen

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

819

949

R-036

Esty Maison Sangenjaya II

Setagaya-ku,
TokyoReal estate trust
beneficiary interests

760

892

－

17

－

Usagetype

Property
number(Note 1)Name ofreal estate, etc.

Location(Note 2)Type of ownershipBook value
at the end of
period(million yen)

Estimatedvalue at theend of period(million yen)
(Note 3)

R-037

Esty Maison Itabashi C6

Itabashi-ku,
TokyoReal estate trust
beneficiary interests

2,464

2,840

R-038

Sha Maison Stage
Hakata(Note 7)

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,367

2,820

R-039

Esty Maison Kinshicho

Sumida-ku,
TokyoReal estate trust
beneficiary interests

1,199

1,370

R-040

Esty Maison Musashikoganei

Koganei-shi,
Tokyo

Real estate trust
beneficiary interests

1,741

2,140

R-041

Prime Maison Gokiso

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,952

2,180

R-042

Prime Maison Yuhigaoka

Osaka-shi, Osaka

Real estate trust
beneficiary interests

868

1,090

R-043

Prime Maison Kitatanabe

Osaka-shi, Osaka

Real estate trust
beneficiary interests

616

700

R-044

Prime Maison Momochihama

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

1,902

2,180

R-045

Esty Maison Akihabara

Taito-ku, Tokyo

Real estate trust
beneficiary interests

1,896

2,090

R-046

Esty Maison Sasazuka

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

3,379

3,780

R-047

Prime Maison Ginza East

Chuo-ku, Tokyo

Real estate trust
beneficiary interests

6,035

7,170

R-048

Prime Maison Takami

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,060

1,160

R-049

Prime Maison Yadaminami

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

845

910

R-050

Prime Maison Teriha

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

1,165

1,320

R-051

Esty Maison
Higashishirakabe

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,608

1,750

R-052

Esty Maison Sengoku

Bunkyo-ku,
TokyoReal estate trust
beneficiary interests

1,333

1,470

R-053

Esty Maison Daizawa

Setagaya-ku,
TokyoReal estate trust
beneficiary interests

2,219

2,510

R-054

Esty Maison Togoshi

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,718

2,020

R-055

Esty Maison Nishitemma

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,606

1,760

R-056

Esty Maison Shirokanedai

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,372

2,980

R-057

Esty Maison Higashishinjuku

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

1,600

1,920

R-058

Esty Maison Motoazabu

Minato-ku, Tokyo

Real estate trust
beneficiary interests

1,509

1,750

R-059

Esty Maison Toritsudaigaku

Meguro-ku,
TokyoReal estate trust
beneficiary interests

840

971

R-060

Esty Maison
Musashikoyama II

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

994

1,130

R-061

Esty Maison Nakano

Nakano-ku,
TokyoReal estate trust
beneficiary interests

1,813

2,010

R-062

Esty Maison Shinnakano

Nakano-ku,
TokyoReal estate trust
beneficiary interests

980

1,070

R-063

Esty Maison Nakanofujimicho

Nakano-ku,
TokyoReal estate trust
beneficiary interests

949

1,060

R-064

Esty Maison Tetsugakudo

Nakano-ku,
TokyoReal estate trust
beneficiary interests

1,108

1,240

R-065

Esty Maison Koenji

Suginami-ku,
TokyoReal estate trust
beneficiary interests

1,123

1,290

R-066

Esty Maison Oshiage

Sumida-ku,
TokyoReal estate trust
beneficiary interests

2,396

2,750

－

18

－

Usagetype

Property
number(Note 1)Name ofreal estate, etc.

Location(Note 2)Type of ownershipBook value
at the end of
period(million yen)

Estimatedvalue at theend of period(million yen)
(Note 3)

R-067

Esty Maison Akabane

Kita-ku, Tokyo

Real estate trust
beneficiary interests

3,110

3,550

R-068

Esty Maison Oji

Kita-ku, Tokyo

Real estate trust
beneficiary interests

1,567

1,850

R-069

Prime Maison Waseda

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

1,502

1,860

R-070

Prime Maison Hatchobori

Chuo-ku, Tokyo

Real estate trust
beneficiary interests

1,380

1,630

R-071

Prime Maison Jimbocho

Chiyoda-ku,
Tokyo

1,865

2,130

R-072

Prime Maison
Gotenyama East

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests
Real estate trust
beneficiary interests

2,865

3,360

R-073

Sha Maison Stage Akihabara

Chiyoda-ku,
TokyoReal estate trust
beneficiary interests

589

608

R-074

Esty Maison Aoi

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

2,345

2,530

R-075

Esty Maison Yakuin

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,557

2,640

R-076

Esty Maison Kinshicho II

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

7,912

9,860

R-077

Esty Maison Ojima

Koto-ku, Tokyo

Real estate trust
beneficiary interests

8,298

11,000R-078

Prime Maison Fujimidai

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

2,155

2,180

R-079

Esty Maison Tsurumai

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

4,515

4,960

R-080

Prime Maison Morishita

Koto-ku, Tokyo

Real estate trust
beneficiary interests

1,830

2,180

R-081

Prime Maison Shinagawa

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,885

2,170

R-082

Prime Maison Odorikoen

Sapporo-shi,
Hokkaido

Real estate trust
beneficiary interests

3,033

3,180

R-083

Prime Maison Minami 2-jo

Sapporo-shi,
Hokkaido

Real estate trust
beneficiary interests

1,817

1,960

R-084

Prime Maison
Kamokamogawa

Sapporo-shi,
Hokkaido

Real estate trust
beneficiary interests

1,185

1,220

R-085

Prime Maison
Central Park(Note 8)

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,141

2,464

R-086

Sha Maison Stage Yahiro

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

1,814

2,040

R-087

Prime Maison Ebisu

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

4,251

5,390

R-088

Sha Maison Stage Kanazawa
Nishiizumi

Kanazawa-shi,Ishikawa

Real estate trust
beneficiary interests

1,005

956

R-089

Esty Maison Unomori

Yokkaichi-shi,
Mie

Real estate trust
beneficiary interests

765

814

R-091

Sha Maison Stage Hino

Hino-shi, Tokyo

Real estate trust
beneficiary interests

1,297

1,510

R-092

Prime Maison
Yokohama Nihon-odori

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

4,610

5,030

R-093

Kobe Women’s Student
Housing

Kobe-shi, Hyogo

Real estate trust
beneficiary interests

5,258

6,170

R-094

Prime Maison Shibuya

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

2,379

2,680

R-095

Prime Maison Hatsudai

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

2,909

3,200

R-096

Esty Maison Uemachidai

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,058

1,180

R-098

Prime Maison
Shirokane-takanawa

Minato-ku, Tokyo

Real estate trust
beneficiary interests

4,781

5,300

Residence

－

19

－

Usagetype

Property
number(Note 1)Name ofreal estate, etc.

Location(Note 2)Type of ownershipBook value
at the end of
period(million yen)

Estimatedvalue at theend of period(million yen)
(Note 3)

R-099

Prime Maison
Ichigayayamabushicho

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

4,101

4,250

R-100

Esty Maison Morishita

Sumida-ku,
TokyoReal estate trust
beneficiary interests

630

726

R-101

Prime Maison
Shirokanedai Tower

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

7,916

10,500R-102

Prime Maison Otsuka

Toshima-ku,
TokyoReal estate trust
beneficiary interests

3,672

4,570

R-103

Prime Maison Asakusabashi

Taito-ku, Tokyo

Real estate trust
beneficiary interests

1,672

2,070

R-104

Prime Maison Daikanyama

Meguro-ku,
TokyoReal estate trust
beneficiary interests

2,513

3,210

R-105

Prime Maison
Gotenyama West

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

3,400

4,530

R-106

Esty Maison
Toyosu Residence(Note 9)

Koto-ku, Tokyo

Real estate trust
beneficiary interests

5,785

7,250

R-108

Esty Maison Ijiri

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

391

421

R-109

Prime Maison
Mitatsunamachi

Minato-ku,
TokyoReal estate trust
beneficiary interests

2,042

2,390

R-110

Prime Maison Hongo

Bunkyo-ku,
TokyoReal estate trust
beneficiary interests

2,597

2,890

R-111

Prime Maison Kuramae

Taito-ku,
Tokyo

Real estate trust
beneficiary interests

2,184

2,470

R-112

Esty Maison Yokohamaaobadai(Note 10)

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

3,009

3,400

R-113

Esty Maison Shizuoka Takajo

Shizuoka-shi,
Shizuoka

Real estate trust
beneficiary interests

667

662

R-114

Sha Maison Stage Hirose-doriSendai-shi,
MiyagiReal estate trust
beneficiary interests

873

929

R-115

Esty Maison
HIGASHIBETSUIN

Nagoya-shi,
Aichi

Real estate trust
beneficiary interests

2,267

2,200

R-116

Esty Maison Kayaba

Nagoya-shi,
Aichi

Real estate trust
beneficiary interests

937

947

R-117

Esty Maison
SHIRAKABEMINAMI

Real estate trust
beneficiary interests

683

682

R-118

Prime Maison Shimokitazawa

Nagoya-shi,
Aichi
Setagaya-ku,
TokyoReal estate trust
beneficiary interests

2,647

2,610

R-119

Prime Maison Meguro

Meguro-ku,
TokyoReal estate trust
beneficiary interests

2,362

2,370

R-120

Prime Maison Ryogoku

Sumida-ku,
TokyoReal estate trust
beneficiary interests

1,579

1,550

R-121

Prime Maison Nakameguro

Meguro-ku,
TokyoReal estate trust
beneficiary interests

10,224

10,600R-122

Prime Maison Itabashi

Itabashi-ku,
TokyoReal estate trust
beneficiary interests

4,974

4,860

-

-

252,842

290,268

Residence

Subtotal－

20－

Usagetype

Officebuilding

Property
number(Note 1)Name ofreal estate, etc.

Location(Note 2)Estimatedvalue at theend of period(million yen)
(Note 3)O-001

Garden City Shinagawa
Gotenyama

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

69,92489,700O-002

Gotenyama SH Building

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

49,466

61,700O-003

Hommachi Minami Garden
City

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

42,30156,000O-004

Hommachi Garden City
(Office building portion)

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

36,24845,000O-005

HK Yodoyabashi Garden
Avenue(Note 11)

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

4,197

6,340

O-006

Hirokoji Garden Avenue

Nagoya-shi,
Aichi

6,150

7,370

O-007

Akasaka Garden City

Minato-ku,
TokyoReal estate trust
beneficiary interests
Real estate trust
beneficiary interests

50,126

51,200-258,415317,310

Subtotal

HotelType of ownershipBook value
at the end of
period(million yen)

-

H-001

Hommachi Garden City
(Hotel portion)

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

16,75918,100

H-002

The Ritz-Carlton, Kyoto

Kyoto-shi, Kyoto

Real estate trust
beneficiary interests

22,11922,295

Subtotal--

38,87840,395

Total

-

-

550,137

647,973(Note 1) “Property number” is the number assigned by property after classifying the properties owned by SHR by usage type, and theletters R, O and H refer to residence, office building and hotel, respectively. The same shall apply hereinafter.
(Note 2) “Location” is indicated based on the statement in the registry. If there are multiple statements of locations in the registry, either
one of them is indicated.
(Note 3) “Estimated value at the end of period” refers to the value stated in each real estate appraisal report (with the end of April as theappraisal date) for each fiscal period ended April, and the value stated in each real estate appraisal report (with the end of Octoberas the appraisal date) or the survey value stated in each real estate survey value report (with the end of October as the surveydate) as a result of value surveys not pursuant to real estate appraisal standards, for each fiscal period ended October, rounded
down to the nearest million yen.
(Note 4) For Esty Maison Gotanda, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest to partof the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site: 387,036/426,933 (orapproximately 90.7%)).
(Note 5) For Esty Maison Musashikoyama, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest
to part of the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site:
117,678/127,609 (or approximately 92.2%)).
(Note 6) For Esty Maison Sendagi, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest to partof the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site: 89,730/103,842 (orapproximately 86.4%)).
(Note 7) Sha Maison Stage Hakata is a property on a leased land owned by the Urban Renaissance Agency and for which a general fixedterm leasehold right is established with a lease term of 50 years from December 1, 2002.
(Note 8) Part of the land of Prime Maison Central Park (lot number: 23-32) is a leased land, while the building (store) on the leased landis owned by the lessee.
(Note 9) Esty Maison Toyosu Residence is a property on a leased land owned by the Urban Renaissance Agency and for which a general
fixed-term leasehold right is established with a lease term of 65 years from March 17, 2006.
(Note 10) Esty Maison Yokohama-aobadai is comprised by two buildings, Esty Maison Yokohama-aobadai North and Esty Maison
Yokohama-aobadai South. As the two buildings are located on the same site, SHR manages these buildings as a single property
reffering to collectively as Esty Maison Yokohama-aobadai and the total amount of each building is indicated.
(Note 11) For HK Yodoyabashi Garden Avenue, SHR owns real estate trust beneficiary interests for the compartmentalized ownershipinterest to all of the exclusively-owned portions of the 1st through 6th floors above ground of the building and for theaccompanying right of site (ratio of right of site: 405,901/1,000,000 (or approximately 40.6%)).

－

21

－

The following table sets forth the change in status of leasing of real estate, etc. owned by SHR.
14th fiscal period
15th fiscal period
From: May. 1, 2021 To: Oct. 31, 2021
From: Nov 1, 2021 To: Apr. 30, 2022
PropertyAs a
PropertyAs a
Total
Occupancy related percentage
Total
Occupancy related percentage
number of
rate
operating of total number of
rate
operating of total
Usage Property
Name oftenants [at the end revenue property- tenants [at the end revenue propertytype
numberreal estate, etc.
[at the end of fiscal[during
related [at the end of fiscal[during
relatedof fiscal
period]fiscaloperating of fiscal
period]fiscaloperatingperiod](%)
period]revenueperiod](%)
period]revenue(Note 1)
(Note 2)
(Note 1)
(Note 2)
(million(%)(million(%)(Note 4)(Note 4)yen)(Note 3)yen)(Note 3)
R-001 Esty Maison Ginza
1
95.7
177
1.2
1
98.1
178
1.2
Esty Maison
R-002
1
90.3
48
0.3
1
89.7
46
0.3
Azabunagasaka
Esty Maison
R-003
1
96.8
58
0.4
1
94.7
56
0.4
Ebisu II
R-004 Esty Maison Ebisu
1
92.1
23
0.2
1
88.9
21
0.1
Esty Maison
R-005
1
94.8
43
0.3
1
94.8
44
0.3
Kanda
Esty Maison
R-006
1
1
92.2
44
0.3
89.9
44
0.3
Kitashinjuku
Esty Maison
R-007
1
97.4
65
0.5
1
91.1
64
0.4
Asakusakomagata
Esty Maison
R-008
1
1
96.7
76
0.5
98.6
77
0.5
Kawasaki
Esty Maison
R-010
1
94.9
52
0.4
1
95.9
53
0.4
KameidoEsty Maison
R-011
1
1
92.4
29
0.2
95.0
30
0.2
MeguroEsty Maison
R-012
1
97.1
50
0.4
1
97.2
49
0.3
SugamoEsty Maison
R-013
1
1
94.7
85
0.6
97.8
86
0.6
Kyobashi
Esty Maison
R-014
1
100.0
30
0.2
1
96.5
31
0.2
Hakuraku
Esty Maison
R-015
1
1
98.4
34
0.2
94.2
33
0.2
Minamihorie
Esty Maison
R-016
1
96.8
91
0.6
1
98.9
96
0.7
GotandaEsty Maison
R-017
1
94.7
76
0.5
1
93.9
77
0.5
Oisendaizaka
Residence
Esty Maison
R-018 Shinagawa
1
96.5
63
0.4
1
94.1
64
0.4
SeasideEsty Maison
R-019
1
1
90.4
34
0.2
96.2
33
0.2
Minamiazabu
Esty Maison
－
－
－
－
R-020
－
－
24
0.2
Tsukamoto(Note 5)
Esty Maison
R-021
1
94.3
62
0.4
1
99.2
63
0.4
Kawasaki II
Esty Maison
R-022
1
1
98.3
66
0.5
94.0
65
0.4
Azabujuban
Esty Maison
R-023
1
98.5
29
0.2
1
95.4
30
0.2
Itabashihoncho
Esty Maison－－－－
R-024 Oizumigakuen(Note
－
－
16
0.1
5)

R-025

Esty Maison
Higashishinagawa

－

－

43

0.3

－

－

－

－

－

－

43

0.3

－

－

－

－

1

98.3

31

0.2

1

95.9

30

0.2

1

94.9

22

0.2

1

97.3

22

0.2

－

－

36

0.3

－

－

－

－

1

99.5

86

0.6

1

97.7

86

0.6

(Note 5)

R-026
R-027
R-028
R-029

Esty Maison
Itabashikuyakushomae(Note 5)
Esty Maison
Musashikoyama
Esty Maison
Sendagi
Esty Maison
Yotsuyasakamachi(Note 5)

R-030

Esty Maison
Hakatahigashi

－

22

－

Usagetype

Property
numberName ofreal estate, etc.

14th fiscal period
15th fiscal period
From: May. 1, 2021
From: Nov 1, 2021
To: Oct. 31, 2021
To: Apr. 30, 2022
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
percentage
Total
Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof total
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalof fiscal
period]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)(Note 3)

R-031
R-033
R-034
R-035
R-036
R-037
R-038
R-039
R-040
R-041
R-042
R-043
R-044
R-045
Residence

R-046
R-047
R-048
R-049
R-050
R-051
R-052
R-053
R-054
R-055
R-056
R-057
R-058

Esty Maison
Kamigofuku(Note 5)
Prime Maison
Musashinonomori
Prime Maison
Higashisakura
Prime Maison
Kayabakoen
Esty Maison
Sangenjaya II
Esty Maison
Itabashi C6
Sha Maison Stage
HakataEsty Maison
Kinshicho
Esty Maison
Musashikoganei
Prime Maison
GokisoPrime Maison
Yuhigaoka
Prime Maison
Kitatanabe
Prime Maison
Momochihama
Esty Maison
Akihabara
Esty Maison
SasazukaPrime Maison
Ginza East
Prime Maison
TakamiPrime Maison
Yadaminami
Prime Maison
TerihaEsty Maison
Higashishirakabe
Esty Maison
Sengoku
Esty Maison
Daizawa
Esty Maison
Togoshi
Esty Maison
Nishitemma
Esty Maison
Shirokanedai
Esty Maison
Higashishinjuku
Esty Maison
Motoazabu(Note 3)

－

－

17

0.1

－

－

－

－

1

98.6

67

0.5

1

92.6

67

0.5

1

98.5

51

0.4

1

96.5

51

0.4

1

100.0

29

0.2

1

92.8

30

0.2

1

100.0

24

0.2

1

92.2

23

0.2

1

94.1

75

0.5

1

97.4

78

0.5

1

100.0

94

0.7

1

100.0

96

0.7

1

100.0

36

0.3

1

91.7

35

0.2

1

99.0

54

0.4

1

100.0

56

0.4

1

98.3

64

0.4

1

98.3

64

0.4

1

96.4

29

0.2

1

100.0

30

0.2

1

93.2

23

0.2

1

100.0

23

0.2

1

100.0

69

0.5

1

100.0

69

0.5

1

94.9

67

0.5

1

91.2

55

0.4

1

97.5

90

0.6

1

98.0

90

0.6

1

90.9

171

1.2

1

94.4

172

1.2

1

100.0

33

0.2

1

100.0

33

0.2

1

100.0

28

0.2

1

100.0

29

0.2

1

100.0

51

0.4

1

100.0

51

0.4

1

100.0

46

0.3

1

100.0

46

0.3

1

88.1

36

0.3

1

98.7

37

0.3

1

98.8

63

0.4

1

91.0

61

0.4

1

96.8

50

0.4

1

97.8

50

0.3

1

93.9

49

0.3

1

93.9

52

0.4

1

93.9

69

0.5

1

96.1

70

0.5

1

96.0

46

0.3

1

98.2

49

0.3

1

100.0

38

0.3

1

100.0

43

0.3

R-059

Esty Maison
Toritsudaigaku

1

96.0

23

0.2

1

94.9

23

0.2

R-060

Esty Maison
Musashikoyama II

1

97.8

30

0.2

1

97.8

29

0.2

－

23

－

Usagetype

Property
numberName ofreal estate, etc.

14th fiscal period
15th fiscal period
From: May. 1, 2021
From: Nov 1, 2021
To: Oct. 31, 2021
To: Apr. 30, 2022
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
percentage
Total
Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof total
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalof fiscal
period]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)(Note 3)

R-061
R-062
R-063
R-064
R-065
R-066
R-067
R-068
R-069
R-070
R-071
R-072
R-073
R-074
R-075
Residence

R-076
R-077
R-078
R-079
R-080
R-081
R-082
R-083
R-084
R-085
R-086
R-087
R-088
R-089
R-090

Esty Maison
NakanoEsty Maison
Shinnakano
Esty Maison
Nakanofujimicho
Esty Maison
Tetsugakudo
Esty Maison
KoenjiEsty Maison
Oshiage
Esty Maison
AkabaneEsty Maison Oji
Prime Maison
WasedaPrime Maison
Hatchobori
Prime Maison
JimbochoPrime Maison
Gotenyama East
Sha Maison Stage
Akihabara
Esty Maison Aoi
Esty Maison
YakuinEsty Maison
Kinshicho II
Esty Maison
Ojima
Prime Maison
Fujimidai
Esty Maison
TsurumaiPrime Maison
Morishita
Prime Maison
ShinagawaPrime Maison
Odorikoen
Prime Maison
Minami 2-joPrime Maison
Kamokamogawa
Prime Maison
Central Park
Sha Maison Stage
YahiroPrime Maison
Ebisu
Sha Maison Stage
Kanazawa
Nishiizumi
Esty Maison
Unomori
Esty Maison
KohokuTsunashima(Note 5)(Note 3)

1

98.9

53

0.4

1

98.9

53

0.4

1

91.6

27

0.2

1

100.0

30

0.2

1

94.4

29

0.2

1

100.0

28

0.2

1

97.0

34

0.2

1

91.5

34

0.2

1

96.7

33

0.2

1

96.6

33

0.2

1

98.3

70

0.5

1

96.3

72

0.5

1

97.6

96

0.7

1

98.2

94

0.6

1

95.5

48

0.3

1

92.0

46

0.3

1

89.3

44

0.3

1

92.4

41

0.3

1

91.2

38

0.3

1

93.1

36

0.2

1

97.3

51

0.4

1

94.8

51

0.3

1

95.9

91

0.6

1

95.9

90

0.6

1

100.0

15

0.1

1

100.0

15

0.1

1

93.4

64

0.4

1

98.8

71

0.5

1

98.1

74

0.5

1

98.4

75

0.5

1

96.2

223

1.5

1

97.1

223

1.5

1

96.4

243

1.7

1

93.2

242

1.6

1

98.6

72

0.5

1

98.5

74

0.5

1

100.0

155

1.1

1

100.0

155

1.1

1

97.7

55

0.4

1

94.3

58

0.4

1

100.0

57

0.4

1

93.9

56

0.4

1

91.0

115

0.8

1

88.8

110

0.7

1

100.0

73

0.5

1

99.3

75

0.5

1

95.3

47

0.3

1

97.2

48

0.3

1

98.7

89

0.6

1

94.7

88

0.6

1

100.0

56

0.4

1

100.0

56

0.4

1

99.2

110

0.8

1

96.4

112

0.8

1

100.0

39

0.3

1

100.0

39

0.3

1

100.0

27

0.2

1

100.0

27

0.2

－

－

47

0.3

－

－

－

－

－

24

－

Usagetype

Property
number

R-091
R-092
R-093
R-094
R-095
R-096
R-097
R-098
R-099
R-100
R-101
R-102
R-103
R-104
R-105
R-106
Residence R-107
R-108
R-109
R-110
R-111
R-112
R-113
R-114
R-115
R-116
R-117
R-118
R-119
R-120
R-121
R-122
Subtotal

Name ofreal estate, etc.

Sha Maison Stage
Hino
Prime Maison
Yokohama NihonKobe Women’sodori
Student Housing
Prime Maison
ShibuyaPrime Maison
Hatsudai
Esty Maison
Uemachidai
Esty Maison Kobesannomiya(Note 5)
Prime Maison
ShirokanePrime Maison
takanawa
Ichigayayamabush
icho Maison
Esty
Morishita
Prime Maison
Shirokanedai
Prime Maison
Tower
OtsukaPrime Maison
Asakusabashi
Prime Maison
Daikanyama
Prime Maison
Gotenyama West
Esty Maison
Toyosu Residence
Esty Maison
Kokura(Note 5)
Esty Maison Ijiri
Prime Maison
Mitatsunamachi
Prime Maison
Hongo
Prime Maison
Kuramae
Esty Maison
YokohamaEsty Maison
aobadai
Shizuoka Takajo
Sha Maison
StageHirose-dori
Esty Maison
HIGASHIBETSU
Esty Maison
IN
KayabaEsty Maison
SHIRAKABE
MINAMI
Prime Maison
Shimokitazawa
Prime Maison
MeguroPrime Maison
Ryogoku
Prime Maison
Nakameguro
Prime Maison
Itabashi

14th fiscal period
15th fiscal period
From: May. 1, 2021
From: Nov 1, 2021
To: Oct. 31, 2021
To: Apr. 30, 2022
PropertyAs a
PropertyAs a
Total
Occupancy related percentage
Total
Occupancy related percentage
number of
rate
operating of total number of
rate
operating of total
tenants [at the end revenue property- tenants [at the end revenue property[at the end of fiscal[during
related [at the end of fiscal[during
relatedof fiscal
period]fiscaloperating of fiscal
period]fiscaloperatingperiod](%)
period]revenueperiod](%)
period]revenue(Note 1)
(Note 2)
(Note 1)
(Note 2)
(million(%)(million(%)(Note 4)(Note 4)yen)(Note 3)yen)(Note 3)
1

99.0

49

0.3

1

100.0

51

0.4

1

97.8

139

1.0

1

94.3

139

0.9

1

98.9

221

1.5

1

98.9

219

1.5

1

93.6

62

0.4

1

93.4

60

0.4

1

97.4

80

0.6

1

98.3

81

0.6

1

100.0

33

0.2

1

95.7

34

0.2

－

－

18

0.1

－

－

－

－

1

91.1

115

0.8

1

94.4

115

0.8

1

88.0

102

0.7

1

87.9

95

0.6

1

100.0

19

0.1

1

100.0

18

0.1

1

94.3

226

1.6

1

97.0

230

1.6

1

93.5

109

0.8

1

91.7

110

0.8

1

89.8

49

0.3

1

93.6

50

0.3

1

91.6

68

0.5

1

95.5

72

0.5

1

93.3

113

0.8

1

100.0

121

0.8

1

95.9

471

3.3

1

94.9

474

3.2

－

－

18

0.1

－

－

－

－

1

100.0

13

0.1

1

100.0

13

0.1

1

89.5

49

0.3

1

89.4

51

0.3

1

93.3

67

0.5

1

89.2

66

0.5

1

95.8

59

0.4

1

94.3

57

0.4

1

100.0

86

0.6

1

100.0

86

0.6

1

100.0

23

0.2

1

100.0

23

0.2

1

100.0

29

0.2

1

100.0

29

0.2

1

100.0

69

0.5

1

100.0

69

0.5

1

96.2

30

0.2

1

100.0

30

0.2

1

100.0

20

0.1

1

100.0

20

0.1

1

98.3

19

0.1

1

81.9

57

0.4

1

92.6

15

0.1

1

96.4

49

0.3

1

91.0

11

0.1

1

96.7

36

0.2

－

－

－

－

1

95.4

110

0.8

－

－

－

－

1

92.4

50

0.3

12

96.8

7,671

53.0

12

96.5

7,690

52.1

－

25

－

Usagetype

Property
numberName ofreal estate, etc.

14th fiscal period
15th fiscal period
From: May. 1, 2021
From: Nov 1, 2021
To: Oct. 31, 2021
To: Apr. 30, 2022
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
percentage
Total
Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof total
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalof fiscal
period]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)(Note 3)

O-001

95.5

1,895

13.1

1

98.6

1,837

12.5

1

100.0

1,089

7.5

1

100.0

1,088

7.4

1

100.0

1,299

9.0

1

100.0

1,303

8.8

1

100.0

903

6.2

1

100.0

903

6.1

1

100.0

165

1.1

1

100.0

163

1.1

1

100.0

213

1.5

1

100.0

206

1.4

1

87.8

617

4.3

1

89.4

944

6.4

4

97.4

6,184

42.7

4

97.9

6,448

43.7

1

100.0

402

2.8

1

100.0

402

2.7

1

100.0

215

1.5

1

100.0

215

1.5

Subtotal

2

100.0

618

4.3

2

100.0

618

4.2

Total

17

97.2

14,474

100.0

17

97.0

14,756

100.0

O-003

O-004
O-005
O-006
O-007
Subtotal
H-001

Hotel

(Note 3)

1

O-002

Officebuilding

Garden City
Shinagawa
Gotenyama
Gotenyama SH
Building
HommachiMinami Garden
City
Hommachi Garden
City(Office building
portion)HK Yodoyabashi
Garden Avenue
Hirokoji Garden
AvenueAkasaka Garden
City

H-002

Hommachi Garden
City(Hotel portion)
The Ritz-Carlton,
Kyoto(Note 1)

“Total number of tenants” refers to the sum total of the number of tenants under, and indicated in, the respective lease agreements
for each property that are valid as of the end of fiscal period under review (or, if a master lease agreement that is valid as of theend of each fiscal period has been concluded for the property, the number of lessees under the master lease agreement). In the“Subtotal” and “Total” columns, however, a tenant that leases spaces in multiple properties is counted as one. Furthermore, of theoffice buildings, the total number of end tenants for Garden City Shinagawa Gotenyama, Hommachi Minami Garden City, HK
Yodoyabashi Garden Avenue, Hirokoji Garden Avenue and Akasaka Garden City where pass-through type master lease agreements
have been concluded is 17, 16, 8, 7 and 17, respectively as of the end of the 14th fiscal period (from May 1, 2021 to Oct. 31, 2021)
and 18, 16, 8, 7 and 20, respectively as of the end of the 15th fiscal period (from Nov. 1, 2021 to Apr. 30, 2022).
(Note 2) “Occupancy rate” refers to the ratio of leased area to leasable area of each property as of the end of each fiscal period, rounded to
the nearest first decimal place. The figures indicated in the “Subtotal” columns are the ratio of the subtotal of leased area of each
property classified by usage type to the subtotal of leasable area of each property classified by usage type, and the figure indicatedin the “Total” column is the ratio of the sum total of leased area of each property to the sum total of leasable area of each property,
as the occupancy rate of the entire portfolio. The both figures have been rounded to the nearest first decimal place.
(Note 3) “Property-related operating revenue [during fiscal period]” indicates the property-related operating revenue of each property foreach fiscal period, rounded down to the nearest million yen.
(Note 4) Figures under the heading “As a percentage of total property-related operating revenue” indicate the ratio of property-related
operating revenue of each property for each fiscal period or the subtotal of property-related operating revenue of each property
classified by usage type for each fiscal period to total property-related operating revenue of each property for each fiscal period,
rounded to the nearest first decimal place.
(Note 5) SHR disposed “Esty Maison Tsukamoto”, “Esty Maison Oizumigakuen”, “Esty Maison Higashishinagawa”, “Esty Maison
Itabashikuyakushomae”, “Esty Maison Yotsuyasakamachi”, “Esty Maison Kamigofuku”, “Esty Maison Kohoku Tsunashima”, “EstyMaison Kobe-sannomiya”, and “Esty Maison Kokura” on August 20, 2021. Accordingly, “Property-related operating revenue [during
fiscal period]” and “As a percentage of total property-related operating revenue” for the property in the above table indicate thefigures for the duration SHR owned them in the 14th fiscal period (from May. 1, 2021 to Oct. 31, 2021).

－

26

－

4.

Details of Renewable Energy Power Generation Facility, etc.
Not applicable.

5.

Details of Right to Operate Public Facility, etc.
Not applicable.

6.

Details of Investment Securities
Not applicable.

7.

Table of Status of Contract Amount, etc. and Fair Value of Specified Transactions
The following table sets forth the status of contract amount, etc. and fair value of specified transactions at SHR
as of the end of the fiscal period under review.
Contract amount, etc.
(thousand yen) (Note 1)
Amountdue after 1 year

Fair value(thousand yen)
(Note 2)Category

Type

Transaction other thanmarket transaction

Interest rate swap transaction(Under which floating interest rates
are receivable and fixed interest
rates are payable)

19,150,000

6,650,000(33,897)

Transaction other thanmarket transaction

Interest rate swap transaction(Under which floating interest rates
are receivable and fixed interest
rates are payable)

122,661,000

115,961,000－(Note 3)

Total

141,811,000

122,611,000(33,897)(Note 1) The contract amount, etc. of interest rate swap transactions is based on notional principal amounts.
(Note 2) The fair value was calculated by the counterparty of the relevant transaction based on the actual market interest rate, etc.
(Note 3) The fair value is omitted because the transaction meets the criteria for special accounting under the Accounting Standards for
Financial Instruments.

8.

Status of Other Assets
Trust beneficiary interests with real estate as the main assets in trust are stated in “3. Details of Assets (Real
Estate, etc.) in the Portfolio” above. As of the end of the fiscal period under review, there are no specified assets
other than real estate, etc., asset-backed securities, etc. and infrastructure assets, etc. in the portfolio.

9.

Status of Holding of Assets by Country and Region
As of the end of the fiscal period under review, there are no portfolio real estate, etc. in any other country or region
besides Japan.

－

27

－

Capital Expenditures for Property
1.

Schedule of Capital Expenditures
The main capital expenditure amounts accompanying renovation work, etc. currently planned for properties
owned by SHR, are as follows. However, a portion of such amounts may ultimately be classified as expenses in thecourse of the accounting process.
Name of real estate, etc.
(location)

Prime Maison Ginza East
(Tsukiji, Chuo-ku, Tokyo)
Esty Maison Akabane(Akabane, Kita-ku, Tokyo)
Prime Maison Higashisakura(Higashisakura, Higashi-ku,
Nagoya-shi, Aichi)
Sha Maison Stage Hino
(Shinmachi, Hino-shi, Tokyo)
Esty Maison Ijiri(Ijiri, Minami-ku, Fukuoka-shi,
Fukuoka)(Note)

2.

PurposeScheduled period

Large-scale repairs
Large-scale repairs
Large-scale repairs
Large-scale repairs
Large-scale repairs

From: May 2022
To: October 2022
From: November 2022
To: April 2023
From: May 2022
To: October 2022
From: November 2022
To: April 2023
From: November 2022
To: April 2023

Scheduled amount (million yen) (Note)
Payment for
Total
the fiscal
Amountamount period under already paid
review
150

―

―

149

―

―

123

―

―

94

―

―

64

―

―

“Scheduled amount” refers to the amount arrived at by multiplying (i) the full amount required for the work by (ii) the ratio of thecompartmentalized ownership interest or quasi co-ownership interest owned by SHR, when SHR owns compartmentalized ownershipinterest in the property or quasi co-ownership interest in the real estate trust beneficiary interests for the property (in the event SHR
owns a quasi co-ownership interest related to trust beneficiary interest whose trust estate is composed of compartmentalized
ownership interest, the total cost multiplied by the ratio of compartmentalized ownership interest and then multiplied by the quasi
co-ownership interest ratio) that is subject to the relevant work.

Capital Expenditures During Period
An overview of capital expenditures conducted by SHR for its properties during the fiscal period under review is
as set forth in the following table. Total capital expenditures during the fiscal period under review was 700 million
yen and, together with 336 million yen of repair expenses charged to expenses in the fiscal period under review,
work amounting to 1,037 million yen was implemented.

Name of real estate, etc.
Purpose(location)
Esty Maison Minamihorie
Large-scale repair(Minamihorie, Nishi-ku, Osaka-shi, Osaka)
Esty Maison Itabashihoncho
Large-scale repair(Yamato-cho, Itabashi-ku, Tokyo)
Esty Maison Ginza
Large-scale repair(Ginza, Chuo-ku, Tokyo)
Sha Maison Stage Akihabara
Large-scale repair(Kanda Sakumagashi, Chiyoda-ku, Tokyo)
Other capital expenditures
Total

3.

PeriodPayment amount(million yen)

From: November 2021
To: March 2022
From: November 2021
To: March 2022
From: October 2021
To: April 2022
From: January 2022
To: April 2022

82
83
132
48
355
700

Cash Reserves for Long-Term Repair Plans
SHR had no cash reserved for long-term repair plans as of the end of the fiscal period under review(Note).
(Note) “Reserve fund for repair,” which has been reserved by management associations at the properties owned by SHR in order tosecure expenses for repair works expected in the future, is not included in the cash reserves.

－

28

－

Condition of Expenses and Debts
1.

Details of Expenses Pertaining to Management, etc.
(Unit: thousand yen)Item

14th fiscal period
From: May 1, 2021
To: Oct. 31, 2021

Asset management fee

15th fiscal period
From: Nov. 1, 2021
To: Apr. 30, 2022
1,308,717

910,076

Asset custody fee

10,398

10,387Administrative service fees

48,32048,100

Directors’ compensations

3,600

3,600

373,112266,326

1,744,149

1,238,491

Other expenses
Total(Note) In addition to the amounts shown above, the asset management fees contain 51,450 thousand yen for the 14th fiscal period asmanagement fee for property disposition, which was recorded as other disposition-related expenses.

－

29

－

Condition of Investment Transactions
1.

Status, etc. of Sale and Purchase of Real Estate, etc., Asset-Backed Securities, etc., Infrastructure Assets, etc.
and Infrastructure-Related Assets
Acquisition
Name of real estate, etc.

Acquisition date

Disposition

Acquisition
price(million yen)

Disposition date

(Note)

Disposition
Gain (Loss)
price
Book value
on sale(million yen) (million yen)(million yen)

Akasaka Garden City
(second acquisition portion)

November 1, 2021

21,300――――Prime Maison Nakameguro

February 1, 2022

10,000――――Prime Maison Itabashi

February 1, 2022

4,800

―

―

―

―

―

36,100

―

―

―

―

Total

(Note) “Acquisition price” indicate the transaction prices shown in the sales and purchase agreements for respective owned properties(excluding consumption tax, local consumption tax and miscellaneous expenses including transaction fees), rounded down to thenearest million yen. The same shall apply hereinafter.

2.

Status, etc. in respect of Sale and Purchase of Other Assets
Not applicable.
Main assets other than the abovementioned real estate, etc., asset-backed securities, etc., infrastructure assets,etc. and infrastructure-related assets are essentially bank deposits or bank deposits within assets in trust.

3.

Investigation into Value, etc. of Specified Assets(1)

Real Estate, etc. (Appraisal)

Acquisition
or
Disposition

Name of real estate, etc.

Transaction
date

Akasaka Garden City
(second acquisition portion)

November 1,
2021

Acquisition Prime Maison Nakameguro

February 1,
2022

Prime Maison Itabashi(Note)

February 1,
2022

Type of asset

Real estate
trust
beneficiaryinterests
Real estate
trust
beneficiaryinterests
Real estate
trust
beneficiaryinterests

Acquisition/
Appraisal
disposition
value
price
(million yen)(million(Note)
yen)

Appraiser

Date ofappraisal

September
1, 2021

21,30021,700Chuo Real
EstateAppraisal Co.,Ltd.

10,00010,300

Tanizawa Sogo
Appraisal Co., July 1, 2021
Ltd.

4,800

4,810

Tanizawa Sogo
Appraisal Co., July 1, 2021
Ltd.

The appraisal value stated above is derived by applying the “Real Estate Appraisal Standards; Particulars; Chapter 3: Appraisal on
Value of Real Estate Subject to Securitization.”(2) Others
Concerning transactions requiring investigations into the value, etc. of specified assets pursuant to Article 201,
Paragraph 2 of the Investment Trusts Act, Akasaka Audit LLC has conducted the investigations pursuant toPractical Guidelines for Specialized Operations 4460 “Practical Guidelines for Agreed-Upon Procedures
Pertaining to Investigation into the Value, etc. of Specified Assets of Investment Trusts and Investment
Corporations” published by The Japanese Institute of Certified Public Accountants, and SHR has been notifiedof the results of the investigations.
The transactions subject to investigations in the fiscal period under review were three interest rate swap
transactions. For the transactions, investigations into the name of the counterparty to the transaction, the type

－

30

－

of financial instrument or financial indicator involved, the transaction period, other matters concerning thecontent of the over-the-counter transaction of derivatives, etc. have been entrusted.

4.

Status of Transactions with Interested Persons, etc.(Note 1)(1)

Status of Transactions
Amount of purchase and sale, etc.

Category

Amount of purchase, etc.

Total amountAmount of sale, etc.

36,100 million yen－million yen

Breakdown of status of transactions with interested persons, etc.
Yagenzaka Special Purpose Company

21,300 million yen[59.0%]－million yen[－%]

Sekisui House, Ltd.

14,800 million yen[41.0%]－million yen

[－%]

(2)

Amount of Commission Fee, etc.

Category

Breakdown of transactions with interested persons, etc.

Total amount ofcommission fee,
etc. (A)(thousand yen)Management fee(Note 2)

Amount paid(B)(thousand yen)Payee

As a percentage of
total amount (B/A)(%)

Sekisui House Real Estate Tokyo, Ltd.

435,826

42.0

Sekisui House Real Estate Chubu, Ltd.

68,615

6.6

Sekisui House GM Partners, Ltd.

50,132

4.8

Sekisui House, Ltd.

26,400

2.5

Sekisui House Real Estate Kyushu, Ltd.

18,538

1.8

Sekisui House Real Estate Kansai, Ltd.

3,462

0.3

Sekisui House Real Estate Tohoku, Ltd.

1,050

0.1

294

0.0

1,038,082

SH Hotel Systems Ltd.

(Note 1) “Interested persons, etc.” refers to interested persons, etc. of the asset management company with which SHR has executed an asset
management entrustment agreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts andInvestment Corporations (Order for Enforcement No. 480 of 2000, as amended) and Article 26, Item 27 of the Rules on Investment
Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts Association, Japan.
(Note 2) “Management fee” has been rounded down to the nearest thousand yen.
(Note 3) Other than the commission fee, etc. indicated above, the amounts paid to interested persons, etc. for repair works, etc. are as follows.
The figures have been rounded down to the nearest thousand yen.

5.

Sekisui House Real Estate Tokyo, Ltd

289,749 thousand yen

Sekisui House, Ltd.

213,278 thousand yen

Sekisui House Real Estate Chubu, Ltd.

73,387 thousand yen

Sekisui House GM Partners, Ltd.

21,729 thousand yen

Sekisui House Real Estate Kyushu, Ltd.

18,245 thousand yen

Sekisui House Real Estate Tohoku, Ltd.

3,326 thousand yen

Sekisui House Real Estate Kansai, Ltd.

1,951 thousand yen

Status, etc. of Transactions with the Asset Management Company Pertaining to Business Operations ofConcurrent Business Engaged in by the Asset Management Company
There are no applicable transactions as of the end of the fiscal period under review, as SHAM does not concurrently
engage in any type I financial instruments or type II financial instruments business (as defined in the Financial
Instruments and Exchange Act (Act No. 25 of 1948, as amended)), building lots and buildings transaction business,or specified joint real estate ventures.

－

31

－

Other Information
1.

Notice(1) Meeting of the Board of Directors of the Investment Corporation
In the fiscal period under review, there is no information regarding the matters, etc. provided in Items 2, 3, 5, 6
and 8 of Article 109, Paragraph 2 of the Investment Trusts Act approved at a meeting of the board of directors of
SHR, as well as other matters deemed important.
(2) Fraction of Amounts and Ratios
In this document, unless otherwise stated, figures are rounded down to the nearest whole number, and ratios arerounded off.

－

32

－

1. F inancial Statements( 1) Bal ance Sheet(Thousands of yen)

14th Fiscal Period

15th Fiscal Period(As of October 31, 2021)(As of April 30, 2022)

AssetsCu rrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Allowance for doubtful accounts
To tal current assets

23,040,298
15,051,403
164,021234,965
35,114(1,914)38,523,889

11,154,608
16,033,132
188,420
259,778
159,040(1,022)
27,793,958

No n-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation

172,993,457(19,081,364)

180,182,133(21,399,288)

Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net

153,912,093
1,570,228(270,436)
1,299,791

158,782,845
1,587,002(302,079)
1,284,922

Machinery and equipment in trust
Accumulated depreciation

2,277,190(330,564)

2,424,138(385,167)

Machinery and equipment in trust, net
Vehicles in trust
Accumulated depreciation

1,946,626
153
(153)

2,038,970
153
(153)

Vehicles in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net

0664,503(158,552)
505,950

0774,779(218,587)
556,192

Land in trust
Construction in progress in trust

355,167,709－

385,124,884
12,859Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Other

512,832,171

547,800,674

2,374,044
3,361

2,348,619
4,876

Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets

2,377,406

2,353,495

801,516
564,888358,970
1,725,376

801,516
641,322369,782
1,812,621

To tal non-current assets
D e ferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
To tal deferred assets

516,934,954

551,966,791

136,439
49,715
186,154

121,255
49,105
170,361

To tal assets

555,644,998

579,931,111

－

33 －

(Thousands of yen)

Li abilities
Cu rrent liabilities
Operating accounts payable
Short-term loans payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Derivatives liabilities
Other

15th Fiscal Period(As of October 31, 2021)(As of April 30, 2022)

1,071,071－
3,000,000
39,230,000
1,502,916
201,082582
492,221688,358
37,98057,492

To tal current liabilities
No n-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Derivatives liabilities
Other
To tal non-current liabilities
To tal liabilities
Ne t assets
Un i tholders’ equity
Unitholders’ capital
SurplusCapital surplus
Voluntary reserve
Reserve for reduction entry
Reserve for special account for reduction entry
Reserve for temporary difference adjustments
Total voluntary reserve
Unappropriated retained earnings
Total surplus
To tal unitholders’ equity
Val uation and translation adjustments
Deferred gains or losses on hedges
To tal valuation and translation adjustments
To tal net assets (Note 5)
To tal liabilities and net assets
The accompanying notes are an integral part of these financial statements.

－

14th Fiscal Period

34 －835,543
13,700,000
3,000,000
23,500,000
1,043,814
190,432580－
697,331
26,04934,121

46,281,705

43,027,874

31,500,000
176,212,000
13,950,345
49,396
8,783
221,720,526

31,500,000
191,942,000
14,669,870
7,847
871
238,120,589

268,002,231

281,148,463

149,210,081

161,283,304

128,598,415

128,598,415

726,488－675,138
1,401,626
8,520,020

388,798
1,195,848
604,535
2,189,182
6,745,643

138,520,062
287,730,143

137,533,240
298,816,545(87,376)(33,897)(87,376)
287,642,766(33,897)298,782,647

555,644,998

579,931,111

( 2) Statement of Income and Retained Earnings(Thousands of yen)O pe rating revenue
Rent revenue – real estate ( No te 5)
Other lease business revenue ( Note 5)
Gain on sale of real estate properties ( Note 5)
Total operating revenue

14th Fiscal Period

15th Fiscal Period(From May 1, 2021

(From November 1, 2021

to October 31, 2021)

to April 30, 2022)

14,065,955
408,1222,817,273
17,291,351

14,355,305
401,481－

O pe rating expenses
Expenses related to rent business ( No te 5)
Loss on sale of real estate properties ( Note 5)
Asset management fees
Asset custody fees
Administrative service fees
Directors’ compensation
Bad debt expenses
Other operating expenses

5,769,153
364,362
1,308,717
10,39848,3203,600－

5,892,357－

373,112910,076
10,387
48,1003,600
154266,172

Total operating expenses
O pe rating income

7,877,666
9,413,685

7,130,848
7,625,938

147
649
－

160
693
892

797

1,745

647,886
77,935
107,191
42,613
15,183
3,046
893,857

609,966
77,431
124,916
51,013
15,183
2,924
881,435

8,520,625
8,520,625

6,746,248
6,746,248

605
605

605
605

8,520,020
8,520,020

6,745,643
6,745,643

No n-operating income
Interest income
Reversal of distribution payable
Reversal of allowance for doubtful accounts
Total non-operating income
No n-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses
Amortization of investment unit issuance costs
Amortization of investment corporation bond issuance costs
Other
Total non-operating expenses
O rdinary income
I n come before income taxes
Income taxes – current
Total income taxes
Ne t income
Un appropriated retained earnings
The accompanying notes are an integral part of these financial statements.

－

35 －

14,756,787

( 3) Statement of Changes in Net Assets
14th Fiscal Period (From May 1, 2021 to October 31, 2021)(Thousands of yen)

Unitholders’ equity
Surplus
Unitholders’capitalBalance at beginning of period

Voluntary reserve
CapitalsurplusReserve for
reduction entry

Reserve fortemporarydifference
adjustments

649,425

832,707149,210,081 128,598,415

Unappropriatedretainedearnings

Total
voluntary
reserve
1,482,132

7,103,009

103,708

103,708(103,708)(26,645)(26,645)

26,645(157,569)

157,569

Changes of items during period
Provision of reserve for reduction
entry
Reversal of reserve for reduction
entry
Reversal of reserve for temporary
difference adjustments(157,569)

Distribution from surplus(7,183,515)

Net income

8,520,020

Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period ( No te 6)－

77,062(157,569)(80,506)

1,417,011

149,210,081 128,598,415

726,488675,138

1,401,626

8,520,020－(Thousands of yen)

Valuation and translation
adjustments

Unitholders’ equity
SurplusTotal
unitholders’equityTotal
surplus
Balance at beginning of period

Total
Deferred gains valuation andor losses ontranslation
hedgesadjustments(173,239)(173,239)

Total
net assets

137,183,557

286,393,638

286,220,398

－

－

－

－

－

－

－

－

－

(7,183,515)(7,183,515)(7,183,515)

8,520,020

8,520,020

8,520,020

Changes of items during period
Provision of reserve for reduction entry

Reversal of reserve for reduction
entry
Reversal of reserve for temporary
difference adjustments
Distribution from surplus
Net income
Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period ( No te 6)

85,86385,86385,863

1,336,504

1,336,504

85,86385,863

1,422,367

138,520,062

287,730,143(87,376)(87,376)

287,642,766

－

36 －

15th Fiscal Period (From November 1, 2021 to April 30, 2022)(Thousands of yen)

Unitholders’ equity
Surplus
Voluntary reserve

Unitholders’capitalBalance at beginning of period

Capitalsurplus149,210,081

Reserve forReserve forReserve for special account temporary
reduction entry for reduction
differenceentry
adjustments

128,598,415

726,488－

Total
voluntary
reserve

675,138

1,401,626

Changes of items during period
Issuance of new investment units

12,073,223

Reversal of reserve for reduction
entry
Provision of reserve for special
account for reduction entry
Reversal of reserve for temporary
difference adjustments(337,690)(337,690)
1,195,848

1,195,848(70,602)(70,602)

Distribution from surplus
Net income
Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period ( No te 6)

12,073,223－(337,690)

1,195,848(70,602)787,555

161,283,304

128,598,415

388,798

1,195,848

604,535

2,189,182(Thousands of yen)

Valuation and translation
adjustments

Unitholders’ equity
Surplus
Unappropriate
d retained
earnings
Balance at beginning of period

8,520,020

Total
Total
valuation
Deferred gains
unitholders’andor losses on
equitytranslation
hedgesadjustments

Total
surplus138,520,062

287,730,143(87,376)(87,376)

Total
net assets

287,642,766

Changes of items during period
Issuance of new investment units

12,073,223

12,073,223

－

－

－

(1,195,848)

－

－

－

70,602－－－(7,732,464)(7,732,464)(7,732,464)(7,732,464)

6,745,643

6,745,643

6,745,643

6,745,643

Reversal of reserve for reduction
entry
Provision of reserve for special
account for reduction entry
Reversal of reserve for temporary
difference adjustments

337,690

Distribution from surplus
Net income
Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period ( No te 6)

53,47953,47953,479(1,774,377)(986,821)

11,086,401

53,47953,479

11,139,880

6,745,643

137,533,240

298,816,545(33,897)(33,897)298,782,647

The accompanying notes are an integral part of these financial statements.

－

37 －

( 4) Statement of Cash Distributions
Item

14th Fiscal Period

15th Fiscal Period(From May 1, 2021

(From November 1, 2021

to October 31, 2021)

to April 30, 2022)

Ⅰ. Unappropriated retained earnings

8,520,020,261yen

6,745,643,069yen

337,690,182yen

590,923,444yen

70,602,414yen

187,497,321yen

7,732,464,798yen

7,524,063,834yen[1,803yen ][1,698yen]

1,195,848,059yen

－yen

－yen

－yen

Ⅱ. Reversal of voluntary reserve
Reversal of reserve for reduction entry
Reversal of reserve for temporary difference
adjustments ( Note 7)
Ⅲ. Cash distributions[ Cash distributions per unit]
Ⅳ. Voluntary reserve
Provision of reserve for reduction entry( No te 7)
Ⅴ. Retained earnings carried forward
Method for calculating cash distributions

The basic policy is to distribute

The basic policy is to distributein excess of an amountin excess of an amountequivalent to 90% of theequivalent to 90% of theamount of earnings available
for distribution of SHR

amount of earnings available
for distribution of SHR

provided in Article 67-15,

provided in Article 67-15,

Paragraph 1 of the Act on

Paragraph 1 of the Act on

Special Measures Concerning

Special Measures Concerning

Taxation as set forth in Article

Taxation as set forth in Article

46, Paragraph 1, Item 2 of the46, Paragraph 1, Item 2 of the

Articles of Incorporation of

Articles of Incorporation of

SHR.

SHR.

Based on such policy, SHR

Based on such policy, SHR

decided to distributedecided to distribute

7,732,464,798 yen, which is7,524,063,834 yen, which is

obtained by adding a reversal

obtained by adding a reversalof the reserve for temporaryof the reserve for temporary

difference adjustments

difference adjustments(70,602,414 yen) and a reversalof the reserve for reduction(187,497,321yen) and areversal of the reserve forentry (337,690,182yen) to

reduction entry (590,923,444

unappropriated retainedyen) to unappropriatedearnings and reserving a

retained earnings, as

reserve for reduction entry

distribution of earnings.

(1,195,848,059yen) provided in
Article 65-7 of the Act on

SHR will not distribute cash inSpecial Measures Concerning
Taxation, as distribution ofexcess of earnings as set forthin Article 46, Paragraph 2 of

earnings.

the Articles of Incorporation ofSHR.

SHR will not distribute cash inexcess of earnings as set forthin Article 46, Paragraph 2 of
the Articles of Incorporation of
SHR.

－

38 －

( 5) Statement of Cash Flows(Thousands of yen)

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease due to sale of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
Purchase of intangible assets
Payments for lease and guarantee deposits
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Decrease (increase) in other investments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment corporation bonds
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities
Ne t increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 8)
The accompanying notes are an integral part of these financial statements.

－

39 －

14th Fiscal Period

15th Fiscal Period(From May 1, 2021

(From November 1, 2021

to October 31, 2021)

to April 30, 2022)

8,520,625
2,456,359
15,18342,613(147)
725,822
8,739
－
5,079
31,864
237,832
317,338
262,314
1,836
14,118,910(37,497)
26,706,872
147(762,781)(605)
25,943,633

6,746,248
2,490,587
15,18351,013(160)
687,397(24,399)(156,161)(24,812)(76,433)(128,589)(459,575)(492,221)
8,972－
33,9238,670,970
160(731,910)(606)
7,938,613(7,217,500)(128)－(10,801)
234,296(402,363)
38,012(7,358,485)(37,539,645)－(2,472)－
1,027,185(307,660)(10,811)(36,833,404)－(3,000,000)
8,760,000(10,760,000)
1,980,375－(7,182,607)(10,202,232)
8,382,915
29,708,786
38,091,702

13,700,000－
26,830,000(26,830,000)－
12,022,819(7,731,990)
17,990,829(10,903,961)
38,091,702
27,187,740

( 6) No tes to Financial Statements
1. O rganization
Sekisui House Reit, Inc. (“SHR”) is a Japanese real estate investment corporation established in September 2014
under the Act on Investment Trusts and Investment Corporations of Japan (the “Investment Trust Act”).
On December 3, 2014, SHR commenced its investment operations when it was listed on the Real Estate Investment
Trust Securities Market of the Tokyo Stock Exchange, and it acquired three properties (total acquisition cost of¥114.3 billion) on the same day.
SHR implemented a 2-for-1 split of its investment units with May 1, 2018 as the effective date.
SHR conducted an absorption-type merger with Sekisui House Residential Investment Corporation (“SHI”) as thedissolved corporation, setting May 1, 2018 as the effective date.
SHR is externally managed by a licensed asset management company, Sekisui House Asset Management, Ltd. (the“Asset Management Company”).
Sekisui House Asset Management, Ltd., previously called Sekisui House Investment Advisors, Ltd., carried out anabsorption-type merger with Sekisui House Asset Management, Ltd. (the “former SHAM”), which was the asset
management company for SHI, on May 1, 2018, with the Asset Management Company being the surviving company
and the former SHAM being the dissolved company, and changed its company name to the current one.

2. Basis of Presentation
SHR maintains its accounting records and prepares its financial statements in accordance with accounting
principles generally accepted in Japan (“Japanese GAAP”), including pr ovisions set forth in the Financial
Instruments and Exchange Act, the Investment Trust Act, the Companies Act and the related regulations, which are
different in certain respects as to the application and disclosure requirements of International Financial ReportingStandards.
The accompanying financial statements are basically a translation of the financial statements of SHR, which wereprepared in accordance with Japanese GAAP and were presented in its Securities Report filed with the Kanto Local
Finance Bureau. In preparing the accompanying financial statements, certain reclassifications and modifications
have been made to the financial statements issue d domestically in order to present them in a format which is morefamiliar to readers outside Japan. In addition, the notes to the financial statements include certain information
which might not be required under Japanese GAAP but is presented herein as additional information.
SHR’s fiscal period is a six-month period, which ends at the end of April and October of each year.
SHR does not prepare consolidated financial statements as it has no subsidiaries.
Unless otherwise specified, amounts have been rounded down to the nearest thousand yen in the accompanying
financial statements and the notes thereto. As a result, the amounts shown in the financial statements and notes
thereto do not necessarily agree with the sum of the individual account balances.
3. Sum mary of Significant Accounting Policies
1. Method of depreciation andamortization of non-current
assets

2. Accounting fordeferred assets(1)Property, plant and equipment (including assets in trust)
Depreciation is calculated using the straight-line method.
The useful lives of principal property, plant and equipment are as follows:
Buildings
3-69 years
Structures
6-52 years
Machinery and equipment
8-61 years
Vehicles in trust
2 years
Tools, furniture and fixtures
2-15 years(2)Intangible assets
Intangible assets are amortized utilizing the straight-line method.
Leasehold rights in trust are amortized on a straight-line basis over theremaining life of each fixed-term land lease contract.
(3)Long-term prepaid expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment corporation bond issuance costs
Investment corporation bond issuance costs are amo rtized utilizing thestraight-line method over the redemption periods.
(2) Investment unit issuance costs
Investment unit issuance costs are amortized utilizing the straight-line
method (over 3 years).

－

40 －

3. Standards for recording
allowance

4. Standards forrevenue and expense
recognition

Allowance for doubtful accounts
To prepare for possible losses arising from default on receivables, theestimated uncollectable amount is recorded by examining collectability on acase-by-case basis for doubtful and other specific receivables.
(1)Revenue recognition
The details of the main performance obligations relating to revenue arising fromcontracts with customers and the timing (usual timing of revenue recognition)
when such performance obligations are satisfied are as follows.
1) Sale of real estate, etc.
With regard to the sale of real estate, etc., income is calculated based on when
the buyer gains control over the real estate, etc., at the point in time thedelivery obligation stipulated in the contract relating to the sale of the realestate is satisfied.
2) Utilities revenue
Utilities revenue mainly represents water utility revenue. With regard towater utility revenue, revenue is calculated based on the provision ofelectricity, water, etc. to lessees, as customers, under lease contracts for realestate, etc., and the agreements that are attached to the contracts.
As for the water utility revenue when SHR is deemed to be acting as an agent
in the transaction, revenue is recognized at the net amo unt after deducting
the amount to be paid to other parties from the amount received as thepayment for electricity, gas, etc. supplied by those other parties.
Rent revenue
SHR generally recognizes rent revenue,
including fixed rent revenues, variable rent
revenues and common area charges, on an
accrual basis over the term of each leaseagreement.
Other lease businessrevenue

Other lease business revenue is recognizedin accordance with Japanese GAAP, typicallyas the amounts under the relevant agreements
become due.
(2)Accounting for property taxes
In accounting for property tax, city planning tax, depreciable asset tax, etc. onreal estate, etc., of the tax amount assessed and determined, the amountcorresponding to the applicable calculation period is expensed as expenses
related to rent business.
Reimbursement of property tax, paid to the seller upon the acquisition of realestate or trust beneficiary interests of real estate as assets in trust, is notrecognized as expenses related to rent business in the corresponding fiscal
period but included in the acquisition cost of the property.
Property taxes capitalized as a part of the acquisition cost amounted to 12,201
thousand yen for the 15th fiscal period and 4,274 thousand yen for the 14th
fiscal period.

－

41 －

5. Method of hedge accounting

6.

Scope of funds in thestatement of cash flows

7.

Other significant mattersserving as basis for
preparation offinancial statements(1)Method of hedge accounting
Deferral hedge accounting is applied. However, the special accounting
treatment is applied to interest rate swaps that meet the criteria for the
special accounting treatment.
(2)Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items:
Interest on loans(3)Hedging policy
SHR conducts derivative transactions for the purpose of hedging the risks set
forth in its Articles of Incorporation based on its basic risk management policy.
(4)Method for assessing the effectiveness of hedging
Interest rate swaps meet the criteria for the special accounting treatment andan assessment of the effectiveness is thus omitted.
(5)Special accounting treatment
Under the special accounting treatment, interest rate swaps are not measured
at fair value, but the differential paid or received under the swap agreements
is recognized and included in or deducted from interest expense. Anyamounts received under interest rate swaps subject to such accounting
treatment are not recognized as income on the accompanying statements ofincome and retained earnings but rather have the effect of decreasing interest
expenses.
The funds (cash and cash equivalents) in the statement of cash flows consist of cashon hand and cash in trust; deposits that can be withdrawn at any time and deposits
in trust; and short-term investments with a maturity of three months or less fromthe date of acquisition, which are readily convertible to cash and bear only an
insignificant risk of price fluctuation.
(1)Accounting for trust beneficiary interests of real estate, etc. as assets in trust
Concerning trust beneficiary interests of real estate, etc. as assets in trust, allaccounts of assets and liabilities within assets in trust as well as all accountsof revenue and expenses from the assets in trust are recognized in the relevant
account items on the balance sheet and the statement of income and retained
earnings.
The following material items of the assets in trust recognized in the relevant
account items are separately listed on the balance sheet.
1) Cash and deposits in trust2) Buildings in trust; Structures in trust; Machinery and equipment in trust;Tools, furniture and fixtures in trust; Land in trust; Construction inprogress in trust; Leasehold rights in trust3) Tenant leasehold and security deposits in trust

－

42 －

4. Notes to Balance Sheet
1. Minimum net assets designated in Article 67-4 of the Investment Trust Act(Thousands of yen)

14th Fiscal Period

15th Fiscal Period(As of October 31, 2021)(As of April 30, 2022)

50,00050,0002. Commitment line agreement
SHR has entered into a commitment line agreement with three financial institutions in order to secure flexible
and stable financing.
(Thousands of yen)

14th Fiscal Period

15th Fiscal Period(As of October 31, 2021)(As of April 30, 2022)

Total amount of commitment line
Balance executed as loans
Unused line of credit

15,000,000

15,000,000－－

15,000,000

15,000,000

3. Matters concerning accounting for reserve and reversal of reserve for temporary difference adjustments(Thousands of yen)

14th Fiscal Period

15th Fiscal Period(As of October 31, 2021)(As of April 30, 2022)

Gain on negative goodwill (*)
Initial amount

1,556,827

1,556,827

Balance at beginning of period

832,707675,138

Reserve amount during period－－

Reversal amount during period

157,569

70,602

Balance at end of period
Reason for reserve and reversal

675,138

604,535

Appropriated for
distributions

Appropriated for
distributions(*) Reserve of a part of gain on negative goodwill that arose in the previous fiscal period; SHR plans to drawdown at least 1% of thereserve for each fiscal period (corresponding to the amount of the reserve expensed equally over 50 years) and appropriate the amountfor cash distributions, starting from the fiscal period following the fiscal period in which the reserve was made .

－

43 －

5. Notes to Statement of Income and Retained Earnings
1. Breakdown of property-related operating revenue and expenses(Thousands of yen)

14th Fiscal Period

15th Fiscal Period(From May 1, 2021
to October 31, 2021)(From November 1, 2021
to April 30, 2022)

A. Property-related operating revenue
Rent revenue – real estate
Rental income

13,723,818

Other342,137

14,008,141
14,065,955

347,164

14,355,305

Other lease business revenue
Utilities revenue

186,534

Other

221,588

Total property-related operating revenue

180,119
408,122

221,361

14,474,077

401,481
14,756,787

B. Property-related operating expenses
Expenses related to rent businessSubcontract expenses

566,204

569,716

Property management fees

432,691

468,688

Trust fees

41,461

44,248

Utilities expenses
Property and other taxes
Insurance expenses
Repair expenses
Depreciation
Other expenses related to rent business

272,573

311,649

1,028,390

1,017,039

17,777
370,952

17,407
336,792

2,455,615

2,489,720

583,485

5,769,153

637,094

5,892,357

Total property-related operating expenses

5,769,153

5,892,357

C. Property-related operating income [A − B]

8,704,924

8,864,429

2. Breakdown of gain on sale of real estate properties
14th Fiscal Period (From May 1, 2021 to October 31, 2021)(Thousands of yen)

Esty Maison Tsukamoto
Proceeds from sale of real estate property

1,440,000

Cost of real estate property

1,027,615

Other sales expenses

48,874Gain on sale of real estate property

363,510

Esty Maison Oizumigakuen
Proceeds from sale of real estate property

925,000

Cost of real estate property

767,326

Other sales expenses

31,777

Gain on sale of real estate property

125,896

Esty Maison Higashishinagawa
Proceeds from sale of real estate property

3,160,000

Cost of real estate property

2,286,573

Other sales expenses

105,076

Gain on sale of real estate property

768,350

Esty Maison Itabashikuyakushomae
Proceeds from sale of real estate property

3,125,000

Cost of real estate property

2,452,314－

44 －Other sales expenses

106,464

Gain on sale of real estate property

566,220

Esty Maison Yotsuyasakamachi
Proceeds from sale of real estate property

2,610,000

Cost of real estate property

2,125,030

Other sales expenses

87,633Gain on sale of real estate property

397,336

Esty Maison Kamigofuku
Proceeds from sale of real estate property

970,000

Cost of real estate property

773,476

Other sales expenses

32,778Gain on sale of real estate property

163,744

Esty Maison Kohoku Tsunashima
Proceeds from sale of real estate property

3,175,000

Cost of real estate property

2,686,769

Other sales expenses

106,190

Gain on sale of real estate property

382,039

Esty Maison Kobe-sannomiya
Proceeds from sale of real estate property

1,015,000

Cost of real estate property

930,182

Other sales expenses

34,641Gain on sale of real estate property

50,175

Esty Maison Kokura
Proceeds from sale of real estate property

730,000
1,069,621

Cost of real estate property
Other sales expenses

24,740Loss on sale of real estate property

364,362

15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.

6. Notes to Statement of Changes in Net Assets
Total number of authorized investment units and total number of investment units issued
14th Fiscal Period

15th Fiscal Period(From May 1, 2021
to October 31, 2021)(From November 1, 2021
to April 30, 2022)

Total number of authorized investment units

20,000,000units

20,000,000units

Total number of investment units issued

4,288,666units

4,431,133units

－

45 －

7. Notes to Statement of Cash Distributions
Reserve for temporary difference adjustments
14th Fiscal Period

15th Fiscal Period(From May 1, 2021

(From November 1, 2021

to October 31, 2021)

to April 30, 2022)

With regard to the reserve for temporary
difference adjustments, SHR plans to drawdown

With regard to the reserve for temporary
difference adjustments, SHR plans to drawdownat least 1% of the reserve for each fiscal period

at least 1% of the reserve for each fiscal period(corresponding to the amount of the reserve(corresponding to the amount of the reserve

expensed equally over 50 years) and appropriate

expensed equally over 50 years) and appropriate

the amount for cash distributions, starting fromthe amount for cash distributions, starting fromthe fiscal period following the fiscal period in

the fiscal period following the fiscal period inwhich the reserve was made. SHR decided towhich the reserve was made. SHR decided to

drawdown 70,602,414 yen for the 14th fiscal
period.

drawdown 187,497,321 yen for the 15th fiscal
period.

8. Notes to Statement of Cash Flows
Reconciliation of cash and cash equivalents at end of period to the corresponding balance sheet items(Thousands of yen)

14th Fiscal Period

15th Fiscal Period(From May 1, 2021
to October 31, 2021)(From November 1, 2021
to April 30, 2022)

Cash and deposits

23,040,298

11,154,608

Cash and deposits in trust

15,051,403

16,033,132

Cash and cash equivalents

38,091,702

27,187,740

9. Le ase Transactions
Operating lease transactions as lessee
Future minimum lease payments(Thousands of yen)

14th Fiscal Period

15th Fiscal Period(As of October 31, 2021)(As of April 30, 2022)

Due within 1 year

418,128

418,944

Due after 1 year

19,760,937

19,587,867

20,179,065

20,006,811

Total
Operating lease transactions as lessor
Future minimum lease income(Thousands of yen)

14th Fiscal Period

15th Fiscal Period(As of October 31, 2021)(As of April 30, 2022)

Due within 1 year

9,917,289

8,687,998

Due after 1 year

31,391,871

30,148,623

41,309,160

38,836,622

Total

－

46 －

10. Financial Instruments
1. Status of financial instruments(1) Policy for financial instruments
Making it a policy to conduct stable and sound financial operations that would contribute to steady growthof its investment assets as well as efficient management and stability of management, SHR shall procure
funds through borrowings or the issuance of investment corporation bonds for the purposes of utilizing
such funds for the acquisition of assets, payments of repair expenses or distributions, operations of SHR,
repayment of obligations or other.
For derivative transactions, the policy is that derivati ve transactions shall be limited to those for the
purpose of hedging the risk of fluctuations in interest rates on liabilities and foreign currency risk in thecase of overseas real estate investments, and that no speculative transactions shall be conducted.
(2) Description of financial instruments and associated risks, and risk management structure
The funds procured through borrowings shall be used mainly for the acquisition of investment assets andfor repayment of loans.
The availability and terms and conditions of borrowings and the issuance of investment corporation bonds
may be affected by SHR’s financial creditworthiness, the interest rate situation and other factors, andthere is thus no guarantee that funds can be procured at SHR’s desired timing and terms and conditions.
Furthermore, loans with floating interest rates are susceptible to subsequent market trends.
SHR manages and limits the liquidity risk and the risk of fluctuations in interest rates associated withsuch fund procurement by diversifying fund procurement sources and means and by maintaining the ratio
of interest-bearing liabilities to total assets and the ratio of floating-rate loans to total loans at appropriate
levels. Furthermore, for certain loans with floating interest rates, derivative transactions (interest rate
swap transactions) are used as a hedging instrument for hedging the risk of fluctuations in interest rate s
based on rules that set forth the basic policy for handling derivative transactions and risk management.
(3) Supplementary explanation of matters concerning fair value of financial instruments
As the calculations involve variable factors, there may be cases where the corresponding values will vary
when different assumptions are adopted. In addition, the contract amounts of derivative transactions in “2.
Matters concerning fair value of financial instruments” do not represent the market risk involved in thederivative transactions.
2. Matters concerning fair value of financial instruments
The carrying amount and fair value of financial instruments as of October 31, 2021 and April 30, 2022, andthe difference between them are as follows.
14th Fiscal Period (As of October 31, 2021)
Information on “Cash and deposits,” “Cash and deposits in trust,” and “Short-term loans payable” is omitted
as these are settled within a short period of time, thus the fair value approximates the book value. Also, as“Tenant leasehold and security deposits in trust” are immaterial, related notes are omitted.
(Thousands of yen)Book value
recorded on thebalance sheet

Fair value

Difference(1) Current portion of investment corporation
bonds

3,000,000

2,998,800(1,200)(2) Current portion of long-term loans payable

39,230,000

39,246,355

16,355(3) Investment corporation bonds

31,500,000

31,556,573

56,573(4) Long-term loans payable

176,212,000

177,677,299

1,465,299

249,942,000

251,479,028

1,537,028(87,376)(87,376)－(87,376)(87,376)－

Total liabilities(5) Derivative transactions (*)
Total derivative transactions (*)(*) Amounts arising from derivative transactions are shown on a net basis with any amounts inside square parentheses ( )indicating a net liability position.

－

47 －

(Note 1) Method of calculating the fair value of financial instruments(1) Current portion of investment corporation bonds (3) Investment corporation bonds
The fair value of investment corporation bonds is based on the quoted market price.
Of the investment corporation bonds issued by SHR, the fair value of those with a market price is based on the quoted market
price. For those where it is difficult to obtain the fair value based on the quoted market price, the fair value is based on themethod of calculating by discounting the combined total of principal and interest by a reasonably estimated inte rest rateapplicable when conducting similar fund procurement for the remaining period of the bonds.
(2) Current portion of long-term loans payable (4) Long-term loans payable
As the long-term loans payable with floating interest rates reflect interest rat e changes within a short period of time, the fairvalue is approximately the same as the book value and is thus stated at that book value (provided, however, that for long -termloans payable with floating interest rates that qualify for the special accounting treatment of interest rate swaps (please refer
to “12. Derivative Transactions”), the fair value is based on the method of calculation in which the sum total amount ofprincipal and interest accounted for with the interest rate swap is discounted by th e rate assumed in the event of a similar
new drawdown). In addition, for those with fixed interest rates, the fair value is based on the method of calculation in which
the sum total amount of principal and interest is discounted by the rate assumed in the event of a similar new drawdown
corresponding to the remaining period.
(5) Derivative transactions
Please refer to “12.

Derivative Transactions”.

15th Fiscal Period (As of April 30, 2022)
Information on “Cash and deposits,” “Cash and deposits in trust,” and “Short-term loans payable” is omitted
as these are settled within a short period of time, thus the fair value approximates the book value. Also, as“Tenant leasehold and security deposits in trust” are immaterial, related notes are omitted.
(Thousands of yen)Book value
recorded on thebalance sheet

Fair value

Difference(1) Current portion of investment corporation
bonds

3,000,000

2,999,400(600)(2) Current portion of long-term loans payable

23,500,000

23,515,516

15,516(3) Investment corporation bonds

31,500,000

31,419,572(80,427)(4) Long-term loans payable

191,942,000

191,807,694(134,305)

249,942,000

249,742,183(199,816)(33,897)(33,897)－(33,897)(33,897)－

Total liabilities(5) Derivative transactions (*)
Total derivative transactions (*)(*) Amounts arising from derivative transactions are shown on a net basis with any amounts inside square parentheses ( )indicating a net liability position.
(Note 1) Method of calculating the fair value of financial instruments(1) Current portion of investment corporation bonds (3) Investment corporation bonds
The fair value of investment corporation bonds is based on the quoted market price.
Of the investment corporation bonds issued by SHR, the fair value of those with a market price is based on the quoted market
price. For those where it is difficult to obtain the fair value based on the quoted market price, the fair value is based on themethod of calculating by discounting the combined total of principal and interest by a reasonably estimated interest rateapplicable when conducting similar fund procurement for the remaining period of the bonds.
(2) Current portion of long-term loans payable (4) Long-term loans payable
As the long-term loans payable with floating interest rates reflect interest rate changes within a short period of time, the fairvalue is approximately the same as the book value and is thus stated at that book value (provided, however, that for long -termloans payable with floating interest rates that qualify for the special accounting treatment of interest rate swaps (please refer
to “12. Derivative Transactions”), the fair value is based on the method of calculation in which the sum total amount ofprincipal and interest accounted for with the interest rate swap is discounted by the rate assumed in the event of a similar
new drawdown). In addition, for those with fixed interest rates, the fair value is based on the method of calculation in which
the sum total amount of principal and interest is discounted by the rate assumed in the event of a similar new drawdown
corresponding to the remaining period.
(5) Derivative transactions
Please refer to “12.

Derivative Transactions”.

－

48 －

(Note 2) Repayment schedule of investment corporation bonds and loans after the closing date

14th Fiscal Period (As of October 31, 2021)(Thousands of yen)
Due after
4 to 5 years
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

Investment corporation
bonds

3,000,000－

10,000,000

9,000,000

2,000,000

10,500,000

Long-term loans payable

39,230,000

31,310,000

28,545,000

34,213,000

25,780,000

56,364,000

15th Fiscal Period (As of April 30, 2022)(Thousands of yen)
Due after
4 to 5 years
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

Investment corporation
bonds

3,000,000

3,000,000

12,000,000

4,000,000

2,000,000

10,500,000

Long-term loans payable

23,500,000

40,050,000

29,505,000

32,543,000

14,737,000

75,107,000

11. Securities
14th Fiscal Period (From May 1, 2021 to October 31, 2021)
Not applicable.
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.

12. Derivative Transactions
1. Derivatives to which hedge accounting is not applied
14th Fiscal Period (From May 1, 2021 to October 31, 2021)
Not applicable.
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
2. Derivatives to which hedge accounting is applied
The following is the contract amount or the amount equivalent to the principal provided in the contract asof the closing date for each method of hedge accounting.
14th Fiscal Period (As of October 31, 2021)(Thousands of yen)

Method ofhedge
accounting

Type ofderivative transactions

Interest rate swap
transaction
Principal
Floating interest rate
methodreceivable and fixedinterest rate payable
Interest rate swap
Specialtransaction
accounting
treatment for Floating interest rateinterest ratereceivable and fixedswapsinterest rate payable

Contract amountMain
hedgeditem

Of which,over
1 yearFair value

Calculation
method offair value

Long-term
loans
payable28,980,000

13,750,000(87,376)*1

Long-term
loans
payable123,391,000

101,341,000

*2

－

*1

Fair value is quoted by counterparties based on the prevailing market interest rates.

*2

As derivative transactions qualifying for the special accounting treatment for interest rate swaps are accounted for with thehedged long-term loans payable, the fair value is included in the fair value of the underlying long-term loans payable (pleaserefer to “ 10.

Financial Instruments; 2. Matters concerning fair value of financial instruments (Note 1)”).

－

49 －

15th Fiscal Period (As of April 30, 2022)(Thousands of yen)

Method ofhedge
accounting

Interest rate swap
transaction
Principal
Floating interest rate
methodreceivable and fixedinterest rate payable
Interest rate swap
Specialaccounting
transaction
treatment for Floating interest rateinterest ratereceivable and fixedswapsinterest rate payable

Contract amountMain
hedgeditem

Type ofderivative transactions

Of which,over
1 yearFair value

Calculation
method offair value

Long-term
loans
payable19,150,000

6,650,000(33,897)*1

Long-term
loans
payable122,661,000

115,961,000

*2

－

*1

Fair value is quoted by counterparties based on the prevailing market interest rates.

*2

As derivative transactions qualifying for the special accounting treatment for interest rate swaps are accounted for with thehedged long-term loans payable, the fair value is included in the fair value of the underlying long-term loans payable (pleaserefer to “ 10.

Financial Instruments; 2. Matters concerning fair value of financial instruments (Note 1)”).

13. Retirement Benefits
14th Fiscal Period (From May 1, 2021 to October 31, 2021)
Not applicable.
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.

14. Income Taxes
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause(Thousands of yen)

14th Fiscal Period

15th Fiscal Period(As of October 31, 2021)(As of April 30, 2022)

2,092,448

1,518,552

Amortization of leasehold rights in trust

47,65254,459Deferred gains or losses on hedges

27,488

10,6642,167,589

1,583,676(2,167,589)(1,583,676)

－

－

－

－

Deferred tax assets
Valuation difference on assets acquired due to merger

Deferred tax assets (subtotal)
Valuation allowance for total deductible temporary
difference
Total deferred tax assets
Net deferred tax assets

－

50 －

2. Breakdown of major items that caused significant differences between the statutory tax rate and theeffective income tax rate after application of tax-effect accounting(%)
14th Fiscal Period

15th Fiscal Period(As of October 31, 2021)(As of April 30, 2022)

31.46

31.46

（28.54）（35.09）Changes in valuation allowance

0.25

0.88

Reversal of reserve for reduction entry

1.25

2.76

Provision of reserve for reduction entry(4.42)

－

0.01

0.00

0.01

0.01

Statutory tax rate
[Adjustments]
Deductible cash distribution

Other
Effective income tax rate
after application of tax-effect accounting

15. Profit or Loss of Affiliates Accounted for Under the Equity Method
14th Fiscal Period (From May 1, 2021 to October 31, 2021)
Not applicable.
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.

16. Transactions with Related Parties
1. Parent company and major corporate unitholders.
14th Fiscal Period (From May 1, 2021 to October 31, 2021)
Not applicable.
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
2. Subsidiaries and affiliates.
14th Fiscal Period (From May 1, 2021 to October 31, 2021)
Not applicable.
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
3. Sister companies.
14th Fiscal Period (From May 1, 2021 to October 31, 2021)
Not applicable.
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
4. Directors and major individual unitholders.
14th Fiscal Period (From May 1, 2021 to October 31, 2021)
Not applicable.
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.

－

51 －

17. Revenue Recognition
1. Breakdown of revenue from contracts with customers
14th Fiscal Period (From May 1, 2021 to October 31, 2021)(Thousands of yen)

Revenue from contracts
with customers *1
17,150,000

Sale of real estate, etc.

2,452,911
186,534－

14,651,906

17,336,534

17,291,351

Other
Total

*2

186,534

Utilities revenue*1

Net sales to external customers

Rental revenue, etc. subject to ASBJ Statement No. 13, “Accounting Standard for Lease Transactions” is not included in“Revenue from Contracts with Customers” because such revenue is excluded from the application of the revenue recognition
standard. Revenues from contracts with major customers consist of revenues from the sale of real estate and other assets andutilities revenue.

*2

Regarding the sale of real estate, etc., in accordance with Article 48, Paragraph 2 of the Regulations on Accounting of In vestment
Corporations (Cabinet Office Ordinance No. 47, 2006), gain on the sale of real estate properties, etc. is shown in the statem ent ofincome and retained earnings after deducting cost of real estate property and direct sales expenses from the procee ds from thesale of real estate, etc. In the current fiscal period, a loss on sale of real estate properties is included.

15th Fiscal Period (From November 1, 2021 to April 30, 2022)(Thousands of yen)

Revenue from contracts
with customers *1－

Sale of real estate, etc.
Utilities revenue
Other
Total
*1

Net sales to external customers－*2

180,119－

14,576,667

180,119

180,119

14,756,787

Rental revenue, etc. subject to ASBJ Statement No. 13, “Accounting Standard for Lease Transactions” is not included in“Revenue from Contracts with Customers” because such revenue is excluded from the application of the revenue recognition
standard. Revenues from contracts with major customers consist of revenues from the sale of real estate and other assets andutilities revenue.

*2

Regarding the sale of real estate, etc., in accordance with Article 48, Paragraph 2 of the Regulations on Accounting of In vestment
Corporations (Cabinet Office Ordinance No. 47, 2006), gain on the sale of real estate properties, etc. is shown in the statem ent ofincome and retained earnings after deducting cost of real estate property and direct sales expenses from the procee ds from thesale of real estate, etc.

2. Information to understand revenue from contracts with customers
14th Fiscal Period (From May 1, 2021 to October 31, 2021)
As stated in “ 3. Summary of Significant Accounting Policies”
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
As stated in “ 3. Summary of Significant Accounting Policies”
3. Information on the relationship between performance obligations under contracts with customers and cash
flows resulting from such contracts, and the amount and timing of proceeds expected to be recognized in thenext fiscal period or thereafter from contracts with customers existing at the end of this fiscal period

－

52 －

(1) Balance of contract assets and contract liabilities, etc.
(Thousands of yen)

14th Fiscal Period

15th Fiscal Period(From May 1, 2021
to October 31, 2021)(From November 1, 2021
to April 30, 2022)

Claims arising from contracts with customers(Balance at beginning of period)
Claims arising from contracts with customers(Balance at end of period)
Contract assets(Balance at beginning of period)
Contract assets(Balance at end of period)
Contract liabilities(Balance at beginning of period)
Contract liabilities(Balance at end of period)

34,41140,54440,544

43,843

－

－

－

－

－

－

－

－

(2) Transaction prices allocated to the remaining performance obligations
With regard to utilities revenue, SHR recognizes proceeds in the amount that SHR has the right to claimin accordance with Clause 19 of the Accounting Standard for Revenue Recognition, because SHR has theright to receive from the lessee, as the customer, an amount of compensation directly corresponding to
the value of the items provided up to the end of the fiscal period.
Accordingly, SHR applies the provisions of Clause 80-22(2) of Accounting Standard for Revenue
Recognition and does not include related information in the notes on transaction prices allocated to theremaining performance obligations.
18. Asset Retirement Obligations
14th Fiscal Period (From May 1, 2021 to October 31, 2021)
Not applicable.
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
19. Investment and Rental Properties
SHR owns rental office buildings, etc. in Tokyo and other areas for the purpose of earning revenue fromleasing. The following is the carrying amount, amount of increase (decrease) during the period and fair value ofthese investment and rental properties.
(Thousands of yen)

14th Fiscal Period

15th Fiscal Period(From May 1, 2021

(From November 1, 2021

to October 31, 2021)

to April 30, 2022)

Carrying amount
Balance at beginning of period

524,375,562

515,206,980

Amount of increase (decrease) during period(9,168,582)

34,930,127

Balance at end of period

515,206,980

550,137,107

605,508,000

647,973,000

Fair value at end of period(Note 1) Carrying amount is the book value less accumulated depreciation.

(Note 2) Net increase during the 14th fiscal period is mainly attributable to the acquisition of 3 new properties (6,617,273 thousandyen), offset by a decrease during the period mainly attributable to the disposition of 9 properties (14,057,491 thousand yen)that SHR had owned and depreciation (2,455,615 thousand yen). Net increase during the 15th fiscal period is mainly
attributable to the acquisition of 3 new properties (36,721,421 thousand yen), offset by depreciation (2,489,720 thousand yen).
(Note 3) Fair value at the end of the period is the appraisal value by outside real estate appraisers.

The property-related operating income in the 14th and 15th fiscal periods for investment and rental properties
is presented in “5. Notes to Statement of Income and Retained Earnings”.
－

53 －20. Segment Information
1. Segment information
Segment information is omitted because SHR operates a single segment, which is the real estate leasing
business.
2. Related information
14th Fiscal Period (From May 1, 2021 to October 31, 2021)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single
products and services category are in excess of 90% of operating revenue on the statement of income andretained earnings.
(2) Information about geographic areas
1) Operating revenue
Information about net sales is omitted because net sales to external customers in Japan are in excessof 90% of operating revenue on the statement of income and retained earnings.
2) Property, plant and equipment
Information about property, plant and equipment is omitted because the property, plant andequipment located in Japan is in excess of 90% of property, plant and equipment on the balance
sheet.
(3) Information about major customers(Thousands of yen)

Name of customer

Operating revenue

Name of related segment

1,363,547

Real estate leasing businessSekisui House, Ltd.
15th Fiscal Period (From November 1, 2021 to April 30, 2022)(1) Information about products and services

Information about products and services is omitted because net sales to external customers for a single
products and services category are in excess of 90% of operating revenue on the statement of income andretained earnings.
(2) Information about geographic areas
1) Operating revenue
Information about net sales is omitted because net sales to external customers in Japan are in excessof 90% of operating revenue on the statement of income and retained earnings.
2) Property, plant and equipment
Information about property, plant and equipment is omitted because the property, plant andequipment located in Japan is in excess of 90% of property, plant and equipment on the balance
sheet.
(3) Information about major customers(Thousands of yen)

Name of customer

Operating revenue

Name of related segment

1,363,547

Real estate leasing businessSekisui House, Ltd.

21. Per Unit Information
14th Fiscal Period

15th Fiscal Period(From May 1, 2021

(From November 1, 2021

to October 31, 2021)

to April 30, 2022)

Net assets per unit

67,070yen

67,428yen

Net income per unit

1,986yen

1,522yen(Note 1) Net income per unit is calculated by dividing net income by the daily weighted average number of investment units.
In addition, diluted net income per unit is not stated because there are no dilutive investment units.

－

54 －

The following is the basis for calculating net income per unit.

14th Fiscal Period

15th Fiscal Period(From May 1, 2021
to October 31, 2021)(From November 1, 2021
to April 30, 2022)

8,520,020

6,745,643－－

8,520,020

6,745,643

4,288,666

4,430,365

Net income (Thousands of yen)Amount not attributable to common unitholders(Thousands of yen)
Net income attributable to common investment units(Thousands of yen)
Average number of investment units during period (Units)

22. Significant Subsequent Events
1. Disposition of Asset
On June 15, 2022, SHR resolved to dispose the quasi co -ownership interest in trust beneficiary interest of one
property, and entered a sale and purchase contract as follows.
The effect on profit and loss from this disposition will be approximately 613 million yen from a gain on
disposition to be recorded for the fiscal period ending October 31, 2022 (from May 1, 2022 to October 31,2022).
Property name
：The Ritz Carlton, Kyoto
Type of use：HotelLocation：Kyoto-shi, Kyoto

Planned disposition price)：23,000 million yen (Note1)

Sale and purchase contract Date：June 15, 2022
Planned disposition Date

：August 2, 2022

Buyer

：Sekisui House, Ltd.

(Note1) “Planned disposition price” is the sale and purchase price stated in the sale and purchase agreement(excluding consumption tax and local consumption tax and commission and other various expenses; rounded
down to the nearest million yen).

2. Determination of Matters Pertaining to the Investment Units Buyback Program
SHR hereby announces that at the Board of Directors Meeting held June 15, 2022, the investment units
buyback program (“the Buyback”) based on the provisions of Article 80-2 of the Act on Investment Trusts andInvestment Corporations, which is applied by replacing the terms and phrases pursuant to the provisions ofArticle 80-5, Paragraph 2 of the said Act, has been resolved as described below. Moreover, all of the acquired
investment units are scheduled to be cancelled during the fiscal period ending October 31, 2022.
(1) Reason for the Buyback
After comprehensively considering the level of the investment unit price, cash on hand, financial
condition, market environment, etc., SHR has determined that increasing the NAV per unit through theacquisition and cancellation of its own investment units and improving the distribution per unit (“DPU”)
will contribute to improving unitholder value.
(2) Details of the Matters Concerning the Buyback
Planned total number of investment units to be acquired ：Up to 70,000 units
Planned total acquisition price of the investment units：Up to 4,000,000,000 yen

Methods of the Buyback：Market purchase via Tokyo Stock Exchange based on a discretionary
Acquisition periodtransaction contract with a securities company：From June16, 2022 to September 30, 2022

－

55 －

( 7) Su pplementary Schedules
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
1. Schedule of securities(1) Shares
Not applicable.
(2) Securities other than shares
Not applicable.
2. Contract amount and fair value of derivative transactions(Thousands of yen)Contract amount (*1)
Category

Transaction other thanmarket transaction
Transaction other thanmarket transaction

Type

Of which,over 1 year

Interest rate swap transaction
Floating interest rate receivableand fixed interest rate payable
Interest rate swap transaction
Floating interest rate receivableand fixed interest rate payable
Total

Fair value(*2)

19,150,000

6,650,000（33,897）

122,661,000

115,961,000－ (*3)

141,811,000

122,611,000（33,897）*1 The contract amount of interest rate swap transactions is based on the notional principal amount.
*2 Fair value is quoted by counterparties based on the prevailing market interest rates.
*3 The fair value is omitted because the transaction meets the criteria for the special accounting treatment under the AccountingStandards for Financial Instruments.

－

56 －

3. Schedule of property, plant and equipment and intangible assets(Thousands of yen)Type of assets

Buildings
in trust
Structuresin trust

Balanceat beginningof period

Amount ofincreaseduringperiodAmount ofdecreaseduringperiodBalanceat end ofperiod172,993,457

7,188,676－

1,570,228

16,773

2,277,190

Accumulated depreciation

Net balanceat end ofperiodNotes

2,317,924

158,782,845*

302,079

31,642

1,284,922

2,424,138

385,167

54,603

2,038,970

－

153

153

－

0

110,276－

774,779

218,587

60,034556,192

355,167,709

29,957,174－

385,124,884－－

385,124,884－

12,859－12,859－－12,859532,673,243

37,432,707－

570,105,951

22,305,276

2,464,204

547,800,674

2,552,025－－

2,552,025

203,406

25,4252,348,619

15,665

2,472－

18,137

13,261957

4,876

2,567,691

2,472

－

2,570,163

216,667

26,3832,353,495

535,240,934

37,435,180－

572,676,114

22,521,944

2,490,587

550,154,170

or
accumulated
amortization

For theperiod180,182,133

21,399,288－

1,587,002

146,947－153－

664,503

Machineryandequipment intrust
Property,plant andequipment

Vehicles intrust
Tools,
furniture andfixtures intrust
Land in trust*

Constructionin progress intrust
Subtotal
Intangible

Leaseholdassetsrights in
trust
Other
Subtotal
Total*

The increase during the fiscal period under review is mainly attributable to the acquisition of Prime Maison Nakameguro, Prime Maison
Itabashi, and Akasaka Garden City (additional acquisition portion) .

4. Schedule of other specified assets
Real estate trust beneficiary interests are included above in “3. Schedule of property, plant and equipment
and intangible assets”.

－

57 －

5. Schedule of investment corporation bonds
Name

Issue date

SHI
Fourth Series
Unsecured Investment
Corporation Bond
SHI
Fifth Series
Unsecured Investment
Corporation Bond
SHRFirst Series
Unsecured Investment
Corporation Bond
SHR
Second Series
Unsecured Investment
Corporation Bond
SHR
Third Series
Unsecured Investment
Corporation Bond
(Green Bonds)
SHR
Fourth Series
Unsecured Investment
Corporation Bond
(Green Bonds)
SHR
Fifth Series
Unsecured Investment
Corporation Bond
(Green Bonds)
SHR
Sixth Series
Unsecured Investment
Corporation Bond
(Green Bonds)
SHR
Seventh Series
Unsecured Investment
Corporation Bond
(Green Bonds)
SHR
Eighth Series
Unsecured Investment
Corporation Bond
(Green Bonds)
SHR
Ninth Series
Unsecured Investment
Corporation Bond
(Green Bonds)
Total

Balance at
beginning of
periodAmount ofdecrease during
period(Thousands of(Thousands of
yen )
yen )

Balanceat end of period(Thousands ofyen )Couponrate(%)

Redemption
date

Use ofproceeds

Security

February 28,
2014

3,000,000－

3,000,000

1.069

February 28,
2024

Unsecured

August 29,
2014

3,000,000－

3,000,000

0.871

August30,2024

Unsecured

September 8,
2016

2,000,000－

2,000,000

0.340

September 8,
2026

Unsecured

July 13,2017

3,000,000－

3,000,000

0.240

July 13,2022(Note 2)

Unsecured

July 11,2019

4,000,000－

4,000,000

0.220

July 11,2024

Unsecured

July 11,2019

2,500,000－

2,500,000

0.570

July 11,2029

Unsecured(Note 1)

November 1,
2019

5,000,000－

5,000,000

0.220

November 1,
2024

Unsecured

February 28,
2020

2,000,000－

2,000,000

0.500

February 28,
2030

Unsecured

September 9,
2020

4,000,000－

4,000,000

0.250

September 9,
2025

Unsecured

September 9,
2020

4,000,000－

4,000,000

0.510

September 9,
2030

Unsecured

May 19,2021

2,000,000－

2,000,000

0.460

May 19,2031

Unsecured－

34,500,000－

34,500,000

－

－

－

－

(Note 1) The funds are used to repay borrowings or redemption of existing investment corporation bonds, etc.
(Note 2) . As of the end of the fiscal period under review, these bonds are recorded as “Current portion of investment corporation
bonds” in “Current liabilities” on the balance sheet.
(Note 3) These investment corporation bonds are equipped with pari passu clause among specified investment corporation bonds.
(Note 4) The following is the maturity schedu le of investment corporation bonds within five years of the balance sheet date.

(Thousands of yen)Due in1 year or less
Investment Corporation Bonds

1 to 2 years

3,000,000

3,000,000－

58 －2 to 3 years
12,000,000

3 to 4 years
4,000,000

4 to 5 years
2,000,000

6. Schedule of loans payable(Thousands of yen)
category

LenderShort- MUFG Bank, Ltd.
term Mizuho Bank, Ltd.
loans Sumitomo Mitsui Banking
payable Corporation

Amount ofincreaseduringperiodAmount ofdecreaseduringperiod－－5,310,000－－

5,310,000

Balanceat beginningof period

4,360,000

Balanceat end ofperiod4,360,000－

4,030,000－

4,030,000

MUFG Bank, Ltd.

800,000

800,000

Mizuho Bank, Ltd.

300,000－－

300,000－－

300,000－

300,000－

400,000－

400,000－

MUFG Bank, Ltd.

500,000－

500,000－

Mizuho Bank, Ltd.

400,000－

400,000－

500,000－

500,000－

1,500,000－

1,500,000－

980,000－

980,000－

800,000

800,000－－－

900,000
2,500,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited
MUFG Bank, Ltd.

900,000

Mizuho Bank, Ltd.

2,500,000
2,000,000－－

2,000,000

5,100,000－－

5,100,000

2,400,000

2,400,000－－

3,700,000－

3,700,000－

2,000,000－

2,000,000－

900,000－

900,000－

1,400,000－

1,400,000－

800,000－

800,000－

700,000

700,000－－－

4,600,000

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

4,600,000

Mizuho Bank, Ltd.

700,000－－－

3,700,000－－

3,700,000

700,000－－

700,000

300,000－－

300,000

300,000－－

300,000

500,000

500,000－－

500,000－

500,000－

750,000

750,000
800,000－－

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Resona Bank, Limited

0.96475

The Norinchukin Bank

800,000

THE BANK OF FUKUOKA,
LTD.

500,000－

500,000－

Development Bank of JapanInc.

1,000,000－－

1,000,000

MUFG Bank, Ltd.

1,300,000
1,000,000

－
－

－
－

1,300,000

Mizuho Bank, Ltd.

600,000－－

600,000

300,000－－

300,000

800,000－－

800,000

500,000－－－－

500,000

500,000

THE BANK OF FUKUOKA,
LTD.

700,000－－

700,000

59 －Jan. 31, 2023

Feb. 28, 2022

Feb. 28, 2022

Aug. 31, 2022
(Note3)

Nov. 30, 2021

1.47450

Nov. 30, 2024

0.73975

Feb. 28, 2022

0.85250

1,000,000

The Norinchukin Bank

500,000

Repaymen Use of
Securityt method proceeds

Lumpsum
payment
atmaturity

0.86650－

Repayment
due date

700,000－－

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

1.17350

0.94060

Development Bank of JapanLongInc.
termloans The Norinchukin Bank
payable MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank of JapanInc.
MUFG Bank, Ltd.

0.24863

1.11000－－－

Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.

Averageinterest rate(%)
(Note 1)Feb. 28, 2023
(Note3)

Unsecured(Note2)
UnguaranteedcategoryAmount ofincreaseduringperiodAmount ofdecreaseduringperiodLenderAozora Bank, Ltd.

200,000
200,000－－－－

200,000

Shinkin Central Bank

200,000－－

200,000

200,000－－－－－

200,000

700,000

0.884700.88500

The Senshu Ikeda Bank,Ltd.
The Shizuoka Bank, Ltd.

Balanceat end ofperiodAverageinterest rate(%)
(Note 1)

Balanceat beginningof period

The 77 Bank, Ltd.

200,000

The Hiroshima Bank, Ltd.

200,000

The Yamaguchi Bank, Ltd.

200,000

MUFG Bank, Ltd.

700,000
650,000－－

650,000

350,000－－

350,000

650,000－－

650,000

350,000－－

350,000

300,000－－－－

300,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Resona Bank, Limited

200,000

MUFG Bank, Ltd.

500,000

Mizuho Bank, Ltd.

400,000
700,000－－

700,000

350,000－－

350,000

300,000－－

300,000

100,000－－

100,000

100,000－－

2,100,000－－

2,100,000

450,000－－

450,000

450,000－－

450,000

1,000,000－－

1,000,000

700,000
1,100,000

－
－

－
－

1,100,000

1,100,000－－

1,100,000

450,000－－

450,000

500,000－－

500,000

300,000－－－－－

300,000

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

750,000
400,000

Aozora Bank, Ltd.

200,000

The Yamaguchi Bank, Ltd.

100,000

MUFG Bank, Ltd.

450,000
600,000－－

600,000

200,000－－

200,000

100,000－－

100,000

100,000－－

100,000

100,000－－－－

100,000

100,000

Mizuho Bank, Ltd.

200,000
200,000－－

200,000

400,000－－

400,000

500,000－－

500,000

300,000－－－－

300,000

60 －

0.63800

Feb. 29, 2024

450,000

The Hiroshima Bank, Ltd.

－

0.68030

100,000－－－－

300,000

Aug. 31, 2023

200,000

100,000

The Norinchukin Bank

0.67400

300,000

The 77 Bank, Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

Nov. 30, 2023

700,000－－－－－

The Senshu Ikeda Bank,Ltd.
The Shizuoka Bank, Ltd.

1.01850

100,000

300,000

Shinkin Central Bank

1.00850

500,000

The Norinchukin Bank

Development Bank of JapanInc.
THE BANK OF FUKUOKA,LTD.

Nov. 30, 2022
(Note3)0.89470－－－－

Sumitomo Mitsui Banking
LongCorporation
term
Mizuho Trust & Banking
loansCo., Ltd.
payableMUFG Bank, Ltd.

Feb. 28, 2023
(Note3)200,000

750,000

Mizuho Bank, Ltd.
Development Bank of JapanInc.
Mizuho Bank, Ltd.

0.86650

200,000

MUFG Bank, Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

Repaymen Use of
Securityt method proceeds

200,000－－－－－

Development Bank of JapanInc.
Mizuho Bank, Ltd.

Repayment
due date

0.50500

100,000
100,000
200,000

300,000

0.49500

Aug. 30, 2024

Lumpsum
payment
atmaturity

Unsecured(Note2)
Unguaranteedcategory

LenderBalanceat beginningof period

Amount ofincreaseduringperiodAmount ofdecreaseduringperiod－－－1,000,000

Balanceat end ofperiodMUFG Bank, Ltd.

600,000

MUFG Bank, Ltd.

1,000,000

Mizuho Bank, Ltd.

800,000－－－

800,000－－

800,000

400,000－－

400,000

1,810,000

－
－
－
－
－

1,810,000

Sumitomo Mitsui Banking
Corporation
Development Bank of JapanInc.
MUFG Bank, Ltd.

600,000

440,000

Mizuho Bank, Ltd.

900,000

MUFG Bank, Ltd.

600,000

Mizuho Bank, Ltd.

200,000－－－－－

300,000－－

300,000

600,000－－

600,000

400,000－－－－－

400,000
1,500,000－

1,200,000

440,000
900,000
600,000

700,000

Development Bank of JapanInc.

1,200,000－

THE BANK OF FUKUOKA,
LTD.

500,000－－

500,000

Aozora Bank, Ltd.

300,000
500,000

MUFG Bank, Ltd.

990,000

MUFG Bank, Ltd.

260,000

Mizuho Bank, Ltd.

550,000

－
－
－
－
－

－
－
－
－
－

300,000

The Yamaguchi Bank, Ltd.

220,000－－

220,000

220,000－－

220,000

176,000－－－－

300,000

MUFG Bank, Ltd.

1,500,000

MUFG Bank, Ltd.

800,000

Mizuho Bank, Ltd.

Mizuho Trust & Banking
Long- Co., Ltd.
term Development Bank of Japanloans Inc.
payable Mizuho Bank, Ltd.

990,000

0.72500－－

600,000

1,050,000－－

1,050,000

650,000－－

650,000

950,000－－－

950,000

176,000
2,352,000
750,000

750,000

MUFG Bank, Ltd.

650,000－－－

550,000－－

550,000

750,000
1,050,000

－
－

－
－

1,050,000

600,000－－

600,000

1,050,000－－

1,050,000

650,000－－

650,000

950,000－－－

950,000

750,000

MUFG Bank, Ltd.

650,000－－－

550,000－－

550,000

500,000

－
－
－
－
－

－
－
－
－
－

500,000

100,000

The 77 Bank, Ltd.

500,000

The Hiroshima Bank, Ltd.

500,000－

61 －Lumpsum
payment
atAug. 29, 2025 maturity

0.32000

0.34800

Jul. 13, 2022
(Note3)650,000

750,000

Mizuho Bank, Ltd.

0.61380

Nov. 30, 2023

750,000

The Norinchukin Bank

500,000

0.45254

1,050,000

The Norinchukin BankMUFG Bank, Ltd.

Feb. 27, 2026

0.37000

550,000

600,000

Development Bank of JapanInc.
MUFG Bank, Ltd.

Feb. 28, 2025

260,000

750,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

0.67000

500,000

1,050,000

Mizuho Bank, Ltd.

0.61000

0.77880

2,352,000

Sep. 8, 2026

0.67000

700,000

Mizuho Bank, Ltd.

Development Bank of JapanInc.
MUFG Bank, Ltd.

0.60500

Aug. 29, 2025

800,000

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

0.59750

300,000－－－－

The Norinchukin Bank

Repaymen Use of
Securityt method proceeds

200,000－－－－－

Shinkin Central Bank

Repayment
due date

0.57000

800,000

MUFG Bank, Ltd.

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

Averageinterest rate(%)
(Note 1)0.353410.34000

0.41800

May. 31,2023

750,000
650,000
0.426220.56500

500,000
100,000
500,000
500,000

0.63500

Feb. 27, 2026

Unsecured(Note2)
UnguaranteedcategoryAmount ofincreaseduringperiodAmount ofdecreaseduringperiodLender

MUFG Bank, Ltd.

1,900,000
4,200,000

－
－

－
－

1,900,000

Mizuho Bank, Ltd.

1,900,000－－

1,900,000

376,000－－

376,000

0.28568

300,000－－－－

300,000

0.34900

2,459,000

2,459,000

260,000－－

260,000

900,000－－

900,000

565,000－－

565,000

0.48000

450,000－－－－

450,000

0.56500

1,332,000

1,332,000

390,000－－

390,000

1,350,000－－

1,350,000

500,000－－－－

500,000

500,000
500,000－－

500,000

700,000－－

700,000

200,000－－

200,000

200,000－－－－

200,000

Sumitomo Mitsui Banking
Corporation
Development Bank of JapanInc.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.
Development Bank of JapanInc.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

Balanceat end ofperiodAverageinterest rate(%)
(Note 1)

Balanceat beginningof period

1,000,000

Mizuho Bank, Ltd.

800,000
700,000－－

700,000

400,000－－

400,000

400,000－－

400,000

200,000－－－－－

200,000

Longterm Sumitomo Mitsui Banking
loans Corporation
payable Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

1,000,000

Mizuho Bank, Ltd.

800,000

Sumitomo Mitsui Banking
Corporation

700,000－－

700,000

200,000－－

200,000

400,000－－

400,000

200,000－－－－

200,000

Shinkin Central Bank

200,000

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited－－

1,000,000

200,000－－

200,000

400,000－－

400,000

300,000－－

300,000

300,000－－

300,000

200,000－－

200,000

200,000－－

200,000

200,000－－

200,000－

62 －May. 31, 2023

0.39580

0.40580

0.55600

1,000,000

The Yamaguchi Bank, Ltd.

0.30900

Lumpsum
payment
atAug. 30, 2024
maturity

800,000

2,400,000

The Senshu Ikeda Bank,Ltd.
The 77 Bank, Ltd.

0.29900

0.41388

Mizuho Bank, Ltd.

THE BANK OF FUKUOKA,
LTD.

0.57500

200,000

1,400,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

Feb. 26, 2027

1,000,000

MUFG Bank, Ltd.

500,000

0.35900

200,000－－－－

The Norinchukin Bank

Aug. 30, 2024

800,000

MUFG Bank, Ltd.

200,000

Aug. 31, 2027

100,000
1,000,000

－
－
－
－
－

The Norinchukin Bank

0.78300

500,000

MUFG Bank, Ltd.

100,000

Repaymen Use of
Securityt method proceeds

0.70000

4,200,000－－－－

The Norinchukin Bank

Repayment
due dateAug. 31, 2026
0.56600

500,000
1,400,000

0.68500

2,400,000

0.69500

Feb. 29, 2028

Unsecured(Note2)
Unguaranteedcategory

Averageinterest rate(%)
(Note 1)

LenderBalanceat beginningof period

Amount ofincreaseduringperiodAmount ofdecreaseduringperiodMizuho Bank, Ltd.

1,410,000－－

1,410,000

Sumitomo Mitsui Banking
Corporation

1,200,000－－

1,200,000

1,300,000－－

1,300,000

600,000－－

600,000

Resona Bank, Limited

700,000－－

700,000

Shinkin Central Bank

200,000－－

200,000

MUFG Bank, Ltd.

1,000,000－－

1,000,000

Mizuho Bank, Ltd.

1,500,000－－

1,500,000

1,230,000－－

1,230,000

200,000－－

200,000

600,000－－

600,000

Resona Bank, Limited

800,000－－

800,000

The Norinchukin Bank

900,000－－

900,000

THE BANK OF FUKUOKA,
LTD.

400,000－－

400,000

Shinkin Central Bank

300,000－－

300,000

The 77 Bank, Ltd.

300,000－－

300,000

The Yamaguchi Bank, Ltd.

300,000－－

300,000

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.41000

MUFG Bank, Ltd.

1,170,000－－

1,170,000

0.46000

900,000－－

900,000

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

Balanceat end ofperiodDevelopment Bank of JapanInc.
LongThe Senshu Ikeda Bank,
term
Ltd.
loans
payable MUFG Bank, Ltd.

300,000－－

300,000

1,200,000
200,000－－

1,200,000

Mizuho Bank, Ltd.

－－

800,000－－

800,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited－－

1,800,000

1,400,000－－

1,400,000

Mizuho Bank, Ltd.

300,000－－

300,000

1,000,000－－

1,000,000

800,000－－

800,000

MUFG Bank, Ltd.

1,700,000
1,300,000－－

1,700,000

Mizuho Bank, Ltd.

－－

1,200,000－－

1,200,000

600,000－－

600,000

Resona Bank, Limited

900,000－－

900,000

Development Bank of Japan
Inc.

800,000－－

800,000

Mizuho Bank, Ltd.

605,000－－

605,000

Sumitomo Mitsui Banking
Corporation

800,000－－

800,000

MUFG Bank, Ltd.

2,500,000－－

2,500,000

Mizuho Bank, Ltd.

400,000－－

400,000

545,000－－

545,000

500,000－－

500,000

500,000－－

500,000

1,542,000－－

1,542,000

The Norinchukin Bank

Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.

Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited
MUFG Bank, Ltd.

0.42000

63 －Feb. 27, 2026

Feb. 28, 2029

0.27300

Nov. 30, 2023

0.44100

May. 29,2026

1,300,000
0.59900
May. 31, 2028

0.50000
0.29150

Aug. 29, 2025

0.28000

0.49500－

Aug. 31, 2023

200,000

1,800,000

Repaymen Use of
Securityt method proceeds

0.27100

0.44000

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation

0.28100

Repayment
due date

0.47500

Aug. 31, 2028

Lumpsum
payment
atmaturity

Unsecured(Note2)
Unguaranteedcategory

Averageinterest rate(%)
(Note 1)

LenderBalanceat beginningof period

Amount ofincreaseduringperiodAmount ofdecreaseduringperiodMizuho Bank, Ltd.

300,000－－

300,000

500,000－－

500,000

2,500,000－－

2,500,000

500,000－－

500,000

THE BANK OF FUKUOKA,
LTD.

200,000－－

200,000

MUFG Bank, Ltd.

400,000
990,000－－－－

400,000

Mizuho Bank, Ltd.

1,840,000－－

1,840,000

600,000－－

600,000

700,000－－

700,000

500,000－－

500,000

The Norinchukin Bank

400,000
200,000－－

400,000

Shinkin Central Bank－－The Senshu Ikeda Bank,
Ltd.

200,000－－

200,000

The 77 Bank, Ltd.

400,000
200,000
1,370,000

－
－
－

－
－
－

400,000

The Yamaguchi Bank, Ltd.

1,370,000

0.45000

400,000－－

400,000

0.36000

300,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Resona Bank, Limited

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

MUFG Bank, Ltd.
Development Bank of JapanInc.
MUFG Bank, Ltd.

Balanceat end ofperiod

0.29700

Repayment
due dateFeb. 28, 2025

0.28700

990,000

0.46600

Aug. 31, 2027

200,000

200,000
Aug. 31, 2027

100,000－－－－

300,000

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation

800,000－－

800,000

1,380,000－－

1,380,000

800,000－－－－

800,000

210,000

Sumitomo Mitsui Banking
Corporation

1,800,000－－

1,800,000

Sumitomo Mitsui Trust
Bank, Limited

300,000－－

300,000

Mizuho Trust & Banking
Co., Ltd.

870,000－－

870,000

Resona Bank, Limited

1,100,000
1,020,000

－
－

－
－

1,100,000

The Norinchukin Bank
Development Bank of Japan
Inc.

370,000－－

370,000

0.43500

MUFG Bank, Ltd.

200,000－－

0.28400

Aug. 29, 2025

600,000－－

200,000

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation

500,000－－

500,000

Sumitomo Mitsui Trust
Bank, Limited

500,000－－

500,000
0.29400

Aug. 29, 2025

500,000－－

500,000

1,000,000

－
－
－
－
－

1,000,000

Sumitomo Mitsui Trust
Long- Bank, Limitedterm
MUFG Bank, Ltd.
loans
payable Mizuho Bank, Ltd.

THE BANK OF FUKUOKA,LTD.
Shinkin Central Bank

100,000
May. 30, 2025
Lumpsum
payment
atmaturity

0.50700
Nov. 30, 2028

1,020,000

600,000

MUFG Bank, Ltd.

300,000

Mizuho Bank, Ltd.

700,000

Sumitomo Mitsui Banking
Corporation

600,000－－

600,000

Mizuho Trust & Banking
Co., Ltd.

500,000－－

500,000

Resona Bank, Limited

500,000
500,000－－－－

500,000

The Norinchukin BankThe Shizuoka Bank, Ltd.

0.28600

210,000－－－－－

The 77 Bank, Ltd.

500,000
1,000,000－

64 －Repaymen Use of
Securityt method proceeds

500,000
1,000,000
300,000

0.55850700,000

500,000

0.56850

Feb. 28, 2029

Unsecured(Note2)
Unguaranteedcategory

LenderThe Senshu Ikeda Bank,Ltd.
The Yamaguchi Bank, Ltd.

Balanceat beginningof period

Amount ofincreaseduringperiodAmount ofdecreaseduringperiod1,000,000－－

1,000,000

500,000－－－

500,000
1,280,000

Balanceat end ofperiodThe Hiroshima Bank, Ltd.

500,000

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

1,280,000－－－

1,030,000－－

1,030,000

500,000－－

500,000

2,650,000－－

2,650,000

2,110,000－－

2,110,000

480,000－－

480,000

200,000－－

200,000

300,000－－

300,000

The Norinchukin BankMUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Resona Bank, Limited

Longtermloans Development Bank of Japanpayable Inc.
The Norinchukin BankMUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Resona Bank, Limited
THE BANK OF FUKUOKA,LTD.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited
The Norinchukin Bank
Total

Repayment
due date

0.56850

Feb. 28, 2029

0.25064

Aug. 30, 2024

0.47500

Aug. 31, 2029

0.26942

Nov. 30, 2023

0.46000

May. 31, 2028

0.60200

Nov. 29, 2030

0.52200

Feb. 29, 2028

0.66500

Feb. 28, 2030

Repaymen Use of
Securityt method proceeds

500,000－－

1,550,000
1,270,000

－
－
－
－

－

1,180,000－

1,180,000－－

1,060,000－－

1,060,000

340,000－

760,000－

760,000－

1,500,000－

1,500,000－

1,400,000－

1,400,000－

800,000－

800,000－－－

700,000
2,490,000

2,490,000

790,000－－－－

1,760,000－

1,760,000－

500,000－

500,000－

900,000－

900,000－－

480,000－－

480,000

360,000－

390,000－

390,000－

900,000－

900,000－

750,000－

750,000－

500,000－

500,000－－

1,120,000－－

1,120,000

840,000－

910,000－

910,000－

1,000,000－

1,000,000－

980,000－

980,000－

800,000－

800,000－

800,000－

800,000

215,442,000

40,530,000

210,000

Averageinterest rate(%)
(Note 1)

210,000
1,550,000
1,270,000

340,000

700,000

Lumpsum
payment
atmaturity

Unsecured(Note2)
Unguaranteed

790,000

360,000

840,000

26,830,000 229,142,000(Note 1) Average interest rate is the weighted average interest rate during the period. Interest rates are rounded to six decimal
places. The interest rates for loans hedged by interest rate swap transactions used to hedge the risk of interest rate
fluctuations are the interest rates reflecting the effect of t he interest rate swaps.
(Note 2) Use of proceeds are purchase of assets and related expenses and repayment of loans payable.
(Note 3) As of the end of the fiscal period under review, these loans are recorded as “Current portion of long -term loans payable” in“Current liabilities” on the balance sheet.
(Note 4) The following is the maturity schedule of long-term loans within five years of the balance sheet date.

－

65 －

(Thousands of yen)Due in1 year or lessLong-term loans payable

1 to 2 years

23,500,000

40,050,000

－

66 －

2 to 3 years
29,505,000

3 to 4 years
32,543,000

4 to 5 years
14,737,000