FP 18 Semi-Annual Report
From May 1, 2023 to October 31, 2023

Securities Code 3309
4-15-1, Akasaka, Minato-ku, Tokyo
https://sekisuihouse-reit.co.jp/en/

Contents
Outline of Asset Management Operation

1

Outline of the Investment Corporation

12

Condition of Investment Assets

15

Capital Expenditures for Property

32

Condition of Expenses and Debts

33

Condition of Investment Transactions

34

Other Information

36

Financial Statements
Balance Sheet

37

Statement of Income and Retained Earnings

39

Statement of Changes in Net Assets

40

Statement of Cash Distributions

43

Statement of Cash Flows

44

Notes to Financial Statements

45

Supplementary Schedules

65

Independent Auditor’s Report80

Outline of Asset Management Operation
1.

Overview of the Fiscal Period under Review(1) Major Developments 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 inresidences 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 ofIncorporation were revised to set residences as the sole target of investment, and the corporate name waschanged to Sekisui House SI Residential Investment Corporation. Subsequently, in association with the shift toa 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 , 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 .
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
and commercial
properties as major investment targets.
(Note 1)

(Note 2)

(Note 3)(Note 4)(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 applies hereinafter.
(Note 2) In association with the Investment Corporation Merger, Sekisui House Asset Management, Ltd. (the "former SHAM"), the asset
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 date as 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, furnishedresidences with appliances which do not fall under serviced apartments (*1) (*2)). The same applies hereinafter.
(*1) "Serviced apartments" refer to furnished residences with appliances where a dedicated operator provides certain services to users.
The same applies 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 applies 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, serviced housing for the elderly, paid nursing homes and adult care centers (*); the same applies hereinafter.) andother non-residential business purposes. The same applies hereinafter.
(*) Some serviced housing for the elderly, paid nursing homes and adult care centers may fall under apartment houses as defined in the
Building Standards Act. The same applies hereinafter.

1(2) Operation Environment and Operation Performancea. Operation Environment
During the fiscal period under review, the Japanese economy recovered moderately amid an improving
employment and income environment.
Under these circumstances, in the real estate leasing market, residences and office buildings which are
positioned by SHR as core assets in its portfolio, constitutes for approximately 97% (acquisition price basis) of
the portfolio as of October 31, 2023 (the "end of the fiscal period under review"). As for residences, supply anddemand is strained due to the continuous improvement in the employment environment, especially in theTokyo area. Rents continued to rise for all types of residences while overall occupancy rates of the entire
residential portfolio remained stable. As for office buildings, rent levels remained weak despite the demand for
office floor space showing a recovery trend. This is due to the continued downsizing of offices based on thepenetration of new work styles such as hybrid work, especially among major companies. On the other hand, forhotels that make up about 3% of SHR’s portfolio (acquisition price basis), foreign visitors to Japan (estimatedby the Japan National Tourism Organization as of October 2023) approached 2.51 million, exceeding the samemonth in 2019 for the first time since the spread of COVID-19, and inbound demand is on a recovery trend.
Furthermore, in the real estate transaction market, expected yields have remained at low levels as real estate
investors maintain their very positive investment stance toward high-quality properties in Japan, despite caution
about the review of the monetary easing policy.
b. Operation Performance
Under the circumstances described in "a. Operation Environment" above, SHR disposed of one residential
property and one office building property (10/100 of the ownership share), and acquired one residential
property with the aim of improving profitability and securing stable revenue of the portfolio.
As of the end of the fiscal period under review, the number of properties SHR owned was 120 (comprised of
113 residential properties and 7 commercial properties) with an aggregate acquisition price of 548,726
million yen (269,876 million yen for residential properties and 278,850 million yen for commercial properties).
Moreover, the occupancy rate of SHR’s investment assets as of the end of the fiscal period under review stoodat 97.3% for residential properties, 95.1% for commercial properties and 96.7% for the entire portfolio against
the backdrop of the real estate leasing market as described above.
(Note)(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 price should be the appraisal value upon theacquisition by SHR as such properties are accounted for by the purchase method with SHR set as the acquiring corporation and SHI as theacquired corporation. The same applies hereinafter.

(3) Overview of Fund Procurement
a. Borrowing of Funds
SHR refinanced a total of 20,210 million yen in borrowings that came due during the fiscal period underreview along with the procurement of long-term borrowings totaling 4,000 million yen on May 31, 2023 to be
used toward the early repayment of long-term borrowings. Furthermore, a portion of the proceeds from theasset disposition on August 3, 2023 was used to fund the partial early repayment of short-term borrowings of
1,000 million yen. 16,210 million yen of the refinancing and long-term borrowings of 4,000 million yen are
green loans within the scope of eligible green debt based on the Green Finance Framework established in
December 2022.
As a result, the balance of interest-bearing liabilities as of the end of the fiscal period under review is 257,242
million yen and the ratio of total interest-bearing liabilities to total assets ("LTV (total assets basis)") is 45.2%.
Additionally, on October 25, 2023, SHR reestablished a commitment line agreement with a maximum amountof 15,000 million yen to secure flexible and stable financing methods.

2

b. 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.
(JCR)

Long-term issuer rating: AA
Rating outlook: Stable

Japan Credit Rating Agency, Ltd.
(JCR)

Bond rating: AA

Rating and Investment Information, Inc.
(R&I)

Issuer rating: AARating outlook: Stable(4) ESG Initiatives
Based on the vision of "managing assets to better provide for people, society and the future", SHR identifies
materiality (important issues) and establishes targets (KPIs) to promote initiatives aimed at resolving issues
with a view to a sustainable society, while conducting real estate asset management with due consideration
given to ESG (Environment, Social and Governance).
In the fiscal period under review, on the environmental aspect, SHR further promoted initiatives such as
switching to electricity derived from renewable energy and purchasing non-fossil certificates to achieve
net-zero GHG emissions, and the ratio of renewable energy in the entire portfolio was 91.7% (number ofproperties basis) as of the end of the fiscal period. In addition, to proceed with investment in real estate withexcellent environmental performance, SHR promotes the acquisition of green certifications, and the percentageof owned properties that have acquired green certifications is 82.8% (total floor area basis) as of the end of the
fiscal period. On the social aspect, SHR conducted satisfaction surveys of residents and tenants of officebuildings owned by SHR to understand their needs. On the governance aspect, SHR conducted an evaluationof the effectiveness of the board of directors in order to verify whether the required functions of SHR’s boardof directors and SHAM’s board of directors are being properly fulfilled and to improve the functions of theseboards.
These ESG initiatives have been highly evaluated outside the company, and in December 2023, SHR was
selected as a constituent of the Dow Jones Sustainability Asia/Pacific Index for the first time. In addition, SHR
has continued to be selected as a constituent of the MSCI Japan ESG Select Leaders Index and the FTSE4Good
Index Series.
(5) Overview of Business Performance and Distributions
Results in the fiscal period under review are operating revenue of 16,485 million yen, operating income of
8,343 million yen and ordinary income of 7,411 million yen, resulting in net income of 7,408 million yen. In
addition, concerning cash distributions, based on the application of special tax treatment for investment
corporations (Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, as
amended) ("Special Taxation Measures Act")), SHR decided to distribute 7,409 million yen of theunappropriated retained earnings for the current fiscal period as distribution of retained earnings. In addition,
pursuant to the policy for "distribution of money in excess of profits" as set forth in Article 46, Paragraph 2 of
the Articles of Incorporation of SHR, SHR decided to distribute 1,248 million yen of allowance for temporary
difference adjustments ("ATA") as distribution in excess of earnings for the purpose of reflecting the impactof the tax and accounting differences on distributions. Total distributions are 8,657 million yen.

3

2. Change in Total Number of Investment Units Issued and Outstanding
The following table sets forth the increase (/decrease) in unitholders’capital and the total number ofinvestment units issued and outstanding for the last five years from the end of the fiscal period under review.

Date

Unitholders’capital(million yen)

Event

Increase(Decrease)

Balance

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

Note

Balance

June 10, 2019

Public offering

37,162

147,351

501,500

4,263,591(Note 1)

July 9, 2019

Third-party allotment

1,858

149,21025,075

4,288,666(Note 2)

November 1, 2021

Public offering

11,652160,862

137,500

4,426,166(Note 3)

November 29, 2021

Third-party allotment

420

161,283

4,967

4,431,133(Note 4)

October 17, 2022

Cancellation―

161,283(49,651)

4,381,482(Note 5)(Note 1) New investment units were issued at an issue price of 76,537 yen (with the issue amount being 74,103 yen) per unit through a public offering
to procure funds for the acquisition of new properties.
(Note 2) 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 new properties.
(Note 3) New investment units were issued at an issue price of 87,574 yen (with the issue amount being 84,744 yen) per unit through a public offering
to procure funds for the acquisition of new properties.
(Note 4) 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.
(Note 5) From June 16, 2022 to September 7, 2022, SHR acquired its own investment units through market purchases via the Tokyo Stock Exchange
based on a discretionary transaction contract with a securities company. As resolved at SHR's Board of Directors Meeting on September 30,
2022, all acquired investment units were canceled on October 17, 2022. In addition, funds related to the buyback of investment units werededucted from the capital surplus, thus there is no change in Unitholders’Capital.

[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.
14th fiscal period

15th fiscal period

16th fiscal period

17th fiscal period

18th fiscal period

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

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

From: May 1, 2022
To: Oct. 31, 2022

From: Nov. 1, 2022
To: Apr. 30, 2023

From: May 1, 2023
To: Oct. 31, 2023

High (yen)98,60086,70085,60081,50086,900Low (yen)

86,20073,60075,50068,60076,800Fiscal period43. Statement of Cash Distributions
Distribution per unit for the fiscal period under review (the 18th fiscal period) is 1,976 yen. SHR applies the
special treatment of corporation taxation (Article 67-15 of the Special Taxation Measures Act), which deducts
the amount equivalent to distribution of earnings from taxable income of investment corporations, anddistribute 7,409 million yen of unappropriated retained earnings as distributions of earnings. In addition,
based on the policy of distribution of monies in excess of earnings as set forth in Article 46, Paragraph 2 of the
Articles of Incorporation, SHR has decided to distribute ATA of 1,248 million yen as distribution in excess ofearnings, taking into account the effect on distributions of tax and accounting differences. As a result, the total
amount of distributions are 8,657 million yen.

Fiscal period
Total amount of unappropriatedretained earnings (thousandyen)
Amount of accumulated
earnings (thousand yen)
Total amount of cash
distribution (thousand yen)[Distribution per unit] (yen)Total amount of distribution of
earnings out of the total amountof cash distribution (thousand
yen)[Distribution of earnings perunit] (yen)Total amount of refund ofinvestment in capital out of thetotal amount of cash
distribution (thousand yen)[Amount of refund ofinvestment in capital per unit](yen)
Total distribution amount from
ATA out of total amount ofrefund of investment in capital(thousand yen)[Distribution amount from ATA
per unit out of amount of refundof investment in capital perunit] (yen)Total distribution amount from
distribution reducing
unitholders’capital for tax
purpose out of total amount ofrefund of investment in capital(thousand yen)[Distribution amount from
distribution reducing
unitholders’capital for tax
purpose out of amount ofrefund of investment incapital per unit] (yen)14th fiscal period 15th fiscal period 16th fiscal period 17th fiscal period 18th fiscal period
From: May 1, 2021 From: Nov. 1, 2021 From: May 1, 2022 From: Nov. 1, 2022 From: May 1, 2023
To: Oct. 31, 2021 To: Apr. 30, 2022 To: Oct. 31, 2022 To: Apr. 30, 2023 To: Oct. 31, 2023
8,520,020

6,745,643

7,204,510

6,637,238

7,417,987

1,195,848

－

－

9,334

4,578

7,732,464

7,524,063

7,509,860

7,803,419

8,657,808[1,803][1,698][1,714][1,781][1,976]

7,732,464

7,524,063

7,509,860

7,733,315

7,409,086[1,803][1,698][1,714][1,765][1,691]－－－

70,103

1,248,722

[－]

[－]

[－]

[16]

[285]

－

－

－

70,103

1,248,722

[－]

[－]

[－]

[16]

[285]

－

－

－

－

－

[－]

[－]

[－]

[－]

[－]

5

4. Future Management Policy(1) Future Trends Outlook
It is expected that the Japanese economy will continue its gradual recovery, with an improving employment
and income environment with the effects of various policies. However, the downturn in the overseas economy
poses a risk of downward pressure on the Japanese economy amid the continued global monetary tightening
and concerns about the future of the Chinese economy. In addition, due attention should be paid to the effects
of inflation, the situation in the Middle East, and changes in financial capital markets.
In this environment, as there are signs of improvement in the employment and income environment, it isbelieved that the trend toward a return to central Tokyo and the separation of households in rural areas willcontinue in housing, which is the base of living within the real estate leasing market.
Regarding offices, where business activities are based, although demand is expected to recover as companies
plan to improve office environments in response to changes in work styles, such as the establishment of remote
work and the generalization of online meetings, rent levels will not reach a reversal due to cost increases
caused by high resource prices and the impact of new supply on the market, and a full-scale recovery will taketime. As for hotels, demand for lodging is expected to continue to improve as the number of foreign visitors toJapan is steadily recovering, one year after the country reopened for individual travelers for sightseeing
purposes.
In the real estate transaction market, SHR believes that the expected yields will remain at low levels for theforeseeable future, as the domestic financing environment remains favorable compared to overseas, and thewillingness of real estate investors and business companies to invest has not waned.
(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 throughthe initiatives of SHAM on its own.
Concerning main investment target areas in Japan for residential properties, SHR has set Greater Tokyo 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 aresidence including comfort and safety and such and are expected to see strong leasing demand and supplies ofprime 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 House and Six Sekisui House Real Estate Companies can be fully utilized.
SHR has set the three major metropolitan areas 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
the core 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 fortenant companies’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 inJapan by 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 toreceive 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.
(Note 1)

(Note 2)

(Note 1)

6

Sekisui House and Sekisui House Real Estate Group possess (a) property management skills based on theirrelationship with tenants, (b) know-how as a real estate developer to maintain/improve real estate value throughlarge-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
contribute to the improvement of tenant satisfaction or other factors, including energy efficiency andeco-friendliness, that contribute to the renovation/value enhancement of properties, (ii) personnel support,
including provision of know-how required for the operation of SHR, and (iii) support in areas such as
negotiation of master lease agreements with regard to commercial properties.
(Note 3)(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 applies hereinafter.
(Note 2) "Six Sekisui House Real Estate Companies" is a collective name for Sekisui House Real Estate Tohoku, Ltd., Sekisui House Real EstateTokyo, 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 real estate unit of the Sekisui
House Group operating nationwide. The same applies 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.

(3) Financial Strategy
SHR has adopted as its policy to conduct 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,bolstered by the creditworthiness of the sponsor, Sekisui House, and also to reduce refinancing risks and risksof fluctuations 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, SHR's LTV (total assets basis) policy was set at around 50% as the upper limit for the time being
with a conservative level at mid-40%. However, in order to securely capture property acquisition opportunities
by ensuring flexibility in financing, the policy has been revised upward to operate conservatively within thelevel of 45% to 50%.
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.

75. Significant Subsequent Events
Not applicable.
(Reference Information)(1) Acquisition of Assets
SHR decided on the acquisition of one office building and three residential properties (the "(Planned) Assets to
be Acquired") as of December 21, 2023 as follows.
(Planned)acquisition price(million yen)

Property name

Type of use

Location

Shinjuku Hirose
Building

Office building

Shinjuku-ku,
Tokyo

5,000

Ota-ku, Tokyo

3,600

Koto-ku, Tokyo

1,570

Kita-ku, Tokyo

980(Planned)acquisition dateSellerDecember 21, 2023

G10 Japan 4 TMK

March 1, 2024

TOKYO NISSHOESTEM CO.,Ltd.

－－(Note)

Esty Maison Omori
Esty Maison
Monzennakacho
Esty Maison
Akabane Ⅱ

Residence

Total (planned) acquisition price

11,150(Note) "(Planned) acquisition price" is the sale and purchase price stated in the trust beneficiary interest transfer agreements concluded between SHR
and the sellers (excluding consumption tax, local consumption tax, commission for sales, and other various expenses; rounded down to thenearest million yen).

(2) Disposition of Asset
SHR decided on the disposition of one office building (the "Disposition of Asset") and executed a sale andpurchase agreement as of March 29, 2023 as follows. The Disposition of Asset is scheduled to be carried out in
10 equal installments from the end of October 2023, with 10/100 of the ownership share to be disposed on eachplanned disposition date. As of the date of this document, the first disposition has been executed, and a gain onsale of real estate properties is expected to be recorded during each calculation period as follows.
Property name

Type of use

Total disposition
price(million yen)

Location

Planned disposition
date (Note 2)

Buyerstated as below

TIS Inc.

(Note 1)

Gotenyama SH
Building

Office building

Shinagawa-ku,
Tokyo

70,000(Unit: million yen)
Planned disposition date

Planned disposition price(Note 2)

(Note 1)Gain on disposition(expected) (Note 3)

Calculation period2

End of April 2024

7,000 (10%)

2,079Ending April 2024 (FP 19)

3

End of October 2024

7,000 (10%)

2,092Ending October 2024 (FP 20)

4End of April 2025

7,000 (10%)

2,104Ending April 2025 (FP 21)

5

End of October 2025

7,000 (10%)

2,119Ending October 2025 (FP 22)

6

End of April 2026

7,000 (10%)

2,133Ending April 2026 (FP 23)

7

End of October 2026

7,000 (10%)

2,147Ending October 2026 (FP 24)

8

End of April 2027

7,000 (10%)

2,161Ending April 2027 (FP 25)

9End of October 2027

7,000 (10%)

2,175Ending October 2027 (FP 26)

10

End of April 2028

7,000 (10%)

2,189Ending April 2028 (FP 27)(Note 1) "Total disposition price" and "Planned disposition price" is the sale and purchase price stated in the sale and purchase agreement for
the quasi co-ownership interest in trust beneficiary interest (excluding consumption tax, local consumption tax, commission for sales,
and other various expenses; rounded down to the nearest million yen). The same applies hereinafter.
(Note 2) In the event that the "planned disposition date" is not a business day, the said date will be the immediately preceding business day.
The same applies hereinafter.
(Note 3) "Gain on disposition (expected)" is the approximate value to be recorded on each planned disposition date as of the date of thisdocument and is subject to change. The same applies hereinafter.

8

(3) Change in the Portfolio Development Policy
As of December 21, 2023, SHR changed the portfolio development policy, and the investment ratio (acquisition
price basis) and the target investment ratio for each asset category were changed as follows.
a. Investment ratio by asset category after the change
Main investment
target assets

Asset type

Examples of specificasset types

Portfolio investment
ratio(acquisition price basis)

Medium term target
investment ratio

Residential properties

Residence

Residences
Student dormitories
Company housings

50% - 80%

Approx. 65%

Office building

Office buildings
Data centers

15% - 45%

Approx. 30%

Hotel

HotelsRetail properties
Serviced apartments
Senior housing (Note)

0% - 15%

Approx. 5%

Retail and otherproperties

Commercial properties(Note) Senior housing includes serviced housing for the elderly, paid nursing homes and adult daycare centers. The same applies hereinafter.

b. Investment ratio by asset category before the change
Main investment
target assets

Asset type

Examples of specificasset types

Portfolio investment
ratio(acquisition price basis)

Medium to long term
target investment ratio

Residential properties

Residence

Residences
Student dormitories
Company housings

30% - 55%

Approx. 45%

Office building

Office buildings
Data centers

30% - 55%

Approx. 45%

Hotel

Hotels0% - 30%

Retail and otherproperties

Retail properties
Serviced apartments
Senior housing

0% - 10%

Commercial properties

9

Approx. 15%(The ratio of Hotel isApprox. 10%)

(4) Borrowing of Funds
On November 30, 2023, SHR decided to undertake new borrowings in order to repay long-term borrowings
totaling 9,340 million yen that was due on the same date, as follows. Of these borrowings, part of theborrowings will be financed as green loans executed based on the Green Finance Framework established by
SHR in December 2022.
a. Fixed Interest Rate Borrowing (Green Loan)
Lenders

Category(Note 1)

Borrowingamount(mm yen)Mizuho Bank, Ltd.

230

Sumitomo Mitsui Trust
Bank, Limited

570

Mizuho Trust &Banking Co., Ltd.

100

Interest rate

Drawdown

Borrowing(Note 2) (Note 3)

datemethod1.195%Longterm

Development Bank ofJapan Inc.

220

Sumitomo Mitsui
Banking Corporation

510

1.145%MUFG Bank, Ltd.
(Note 6)1,810

1.195%

Total

3,440

－

Repayment

method(Note 4)(Note 5)

Borrowingbased onindividual loan
agreement, dated
November 27,
November 30,
November 29,
2023.
2023
2030
The lenders
under the loan
agreement are as
indicated to theleft of this table.

－－

Repayment

date－

Lump-sum

Security

Unsecured

repayment

andat maturity

Unguaranteed－－(Note 1) MUFG Bank, Ltd., Mizuho Bank, Ltd., and Sumitomo Mitsui Banking Corporation are arrangers 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 May 2024. 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 the immediately 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 (inwhole or in part), in the period between the drawdown date and the repayment date.
(Note 6) The borrowing from MUFG Bank, Ltd. is an ESG Loan for J-REIT.

10

b. Floating Interest Rate Borrowing
Lenders

Category

Longterm(Note 1)

Borrowing

Interest rate

amount(Note 2) (Note 3)(mm yen)(Note 4)

MUFG Bank, Ltd.
(Note 7)990

Mizuho Bank, Ltd.

810

Sumitomo Mitsui
Banking Corporation

740

Sumitomo Mitsui
Trust Bank, Limited

440

Mizuho Trust &Banking Co., Ltd.

320

Drawdown

Borrowingdate

method900

Mizuho Bank, Ltd.

110

Sumitomo Mitsui
Banking Corporation

250

Sumitomo Mitsui
Trust Bank, Limited

1,140

Mizuho Trust &Banking Co., Ltd.

100

Resona Bank, Limited.

100

method(Note 5)(Note 6)

Security2025

1-month JapaneseNovember 30,

Yen TIBOR) plus

2023

0.190%

Total

Repayment

date

November 28,

Base rate (JBAMUFG Bank, Ltd.
(Note 7)

Repayment

Borrowingbased onindividual loan
agreement,
dated
November 27,
2023.
The lenders
under the loan
agreement are
as indicated to
the left of thistable.

Lump-sum

Unsecured

repayment

andat maturity

Unguaranteed－－

November 30,
2027

5,900

－

－

－

－

(Note 1) MUFG Bank, Ltd., Mizuho Bank, Ltd., and Sumitomo Mitsui Banking Corporation are arrangers of the above borrowings.
(Note 2) The borrowing expenses and other charge payable to the lenders are not included.
(Note 3) 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 the immediately
preceding relevant interest payment date. The Japanese Yen TIBOR is published by the Japanese Bankers 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 therelevant individual loan agreement. For changes in the base rate (being the Japanese Yen TIBOR published by JBA), please check thewebsite of JBA TIBOR Administration (https://www.jbatibor.or.jp/english/rate/).
(Note 4) The first interest payment date will be the last day of December 2023. 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 preceding business day.
(Note 5) 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 6) SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of the borrowings (inwhole or in part), in the period between the drawdown date and the repayment date.
(Note 7) The borrowing from MUFG Bank, Ltd. is an 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
14th fiscal period 15th fiscal period 16th fiscal period 17th fiscal period 18th fiscal period(Oct. 31, 2021)(Apr. 30, 2022)(Oct. 31, 2022)(Apr. 30, 2023)(Oct. 31, 2023)

Total number of investment units
authorized (units)
Total number of investment units
issued and outstanding (units)

20,000,000

20,000,000

20,000,000

20,000,000

20,000,000

4,288,666

4,431,133

4,381,482

4,381,482

4,381,482

Unitholders’capital (million yen)

149,210161,283

161,283

161,283

161,283

Number of unitholders (persons)

18,637

20,87621,154

23,27022,864

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

Custody Bank of Japan, Ltd. (Trust Account)

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

1,177,528

26.88

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

720,285

16.44

Sekisui House, Ltd.

200,750

4.58

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

196,098

4.48

STATE STREET BANK WEST CLIENT - TREATY 505234

66,613

1.52

SMBC Nikko Securities Inc

63,735

1.45

STATE STREET BANK AND TRUST COMPANY 505103

57,9291.32

JP MORGAN CHASE BANK 385771

46,572

1.06

The Shinkumi Federation Bank

45,726

1.04

Mizuho Securities Co., Ltd.

42,9560.98

2,618,192

59.76

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
Director
Supervisor
Director
Independent
AuditorName

Key concurrently held position, etc.

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

Atsuhiro Kida

Director,
Sekisui House Asset Management, Ltd.

Yu YadaLawyer, HIFUMI Law

1,800

Rei Yamashita

Certified Public Accountant, Rei Yamashita
Certified Public Accountant Office

1,800

Ernst & Young
ShinNihon LLC――

17,400(Note 2) (Note3)(Note 1) None of the executive director or supervisory directors owns SHR investment units in their own name or in the name of another person. In
addition, supervisory directors may be officers of other corporations other than those stated above, but none of such corporations, including
those stated above, has vested interest in SHR.
(Note 2) 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.
(Note 3) During the period under review, no work for remuneration based on non-audit services occurred. The amount of remuneration based on
non-audit services to persons belonging to the same network as the accounting auditor is 8,765 thousand yen.

(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 Act on Investment Trusts and Investment Corporations (the "Investment
Trusts Act"). Refusal of reappointment of the independent auditor is also subject to consideration at a meetingof the board of directors of SHR by taking into account the quality of audits, amount of audit fee and various
other circumstances in a comprehensive manner.

13

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 the insured assumes liability for the execution of its duties or receives a claim
for the pursuit of such liability.

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.

5. Asset Management Company, Asset Custodian and Administrative AgentsThe following table sets forth information on the asset management company, asset custodian andadministrative 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.
As of the end of 17th fiscal period As of the end of 18th fiscal period(Apr. 30, 2023)(Oct. 31, 2023)
Type of asset

Asset category

Geographical area, etc.

Total amountheld(million yen)

Ratio to total
assets(%)

Total amountheld(million yen)

Ratio to total
assets(%)(Note 1)

(Note 2)

(Note 1)

(Note 2)

Greater Tokyo

208,84836.7

208,676

36.6

Other areas

55,6429.8

54,498

9.6

Three major
metropolitan areas

273,49848.0

267,810

47.0

―

―

―

―

537,989

94.5

530,985

93.2

Silent partnership equity interests (Note 4)

684

0.1

668

0.1

Deposits and other assets

30,531

5.4

37,824

6.6

Total amount of assets

569,205

100.0

569,478

100.0

Residential
properties
Real estate intrust
Commercial
properties

Other areas

Total of real estate in trust(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 for "Ratio to 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.
(Note 4) This is the equity interest in a silent partnership with Godo Kaisha Gemini1 and Godo Kaisha Gemini2 as the business operator.

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

Name ofreal estate, etc.

Book value
at the end of
period(million yen)

Leasable area(m )Leased area(m )(Note 2)

(Note 3)2

2

Occupancy
rate(%)(Note 4)(Note 1)As apercentage of
total propertyrelated
Usage type
operatingrevenue(%) (Note 5)
Office10.1
building
Office6.8
building
Office7.1
building
Office8.6
building
Office5.9
building

Garden City Shinagawa Gotenyama

69,40838,577.99

32,524.13

84.3

Akasaka Garden City (Note 6)

49,94921,735.42

20,323.29

93.5

Gotenyama SH Building (Note 7)

44,142

17,999.97

17,999.97

100.0

Hommachi Minami Garden City

41,74329,657.53

29,657.53

100.0

35,71617,006.94

17,006.94

100.0

16,59018,092.98

18,092.98

100.0

2.6

Hotel

Prime Maison EGOTANOMORI

10,94029,048.95

28,490.54

98.1

4.1

ResidencePrime Maison Nakameguro

10,155

6,033.98

5,879.69

97.4

1.5

Residence

Esty Maison Ojima

8,174

9,905.97

9,573.60

96.6

1.7

ResidencePrime Maison Shirokanedai Tower

7,851

6,772.89

6,360.17

93.9

1.5

Residence

Total

294,674

194,832.62

185,908.84

95.4

49.8

―

Hommachi Garden City
(Office building portion) (Note 8)
Hommachi Garden City
(Hotel portion) (Note 8)(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 applies hereinafter.
(Note 2) "Leasable area" refers to the floor area presumably available for leasing based on the lease agreement or building drawing, etc. for each
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 for respective properties, thefigure indicates the value obtained by multiplying the leasable area of real estate or real estate in trust (or the leasable area of exclusively
owned portions for properties under compartmentalized ownership interest) by the ratio of the ownership interest owned by SHR or trustees.
The same applies 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 areaof each property is indicated in case fixed-rent type master lease agreements have been concluded with the master lease companies, regardlessof whether lease agreements have been concluded with the end tenants. For "Akasaka Garden City" and "Gotenyama SH Building", thefigures indicate the area corresponding to the portions owned by SHR. The same applies 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 of leased area of each property to thesum 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 real estate
regarding the compartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor under ground through 4th floor
above ground and 11th floor through 19th floor above ground of the building, as well as the accompanying right of site (ratio of right of site:662,768/1,000,000 (or approximately 66.3%)). As of November 1, 2021, SHR acquired the trust beneficiary interest in all of the
exclusively-owned portions of the 5th floor through 9th floor above ground of the building, as well as the accompanying right of site (ratio ofright 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 the10th floor above ground of the building, as well as the accompanying right of site (ratio of right of site: 54,698/1,000,000 (or approximately
5.5%)), and the figures indicate the value corresponding to the portions owned by SHR. The same applies hereinafter.
(Note 7) As of October 31, 2023, SHR has disposed of 10/100 (10.0%) of the quasi co-ownership interest in "Gotenyama SH Building", and owned a
90.0% quasi co-ownership interest in a real estate trust beneficiary interest in the property. Therefore, the amount corresponding to the portion
owned by SHR is stated. The same applies hereinafter.
(Note 8) "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 other information
regarding the property may be described separately for the Office building portion and the Hotel portion. The same applies 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 underreview.

Usage
type

Property
No.
(Note 1)Name ofreal estate, etc.

Location(Note 2)

R-001

Esty Maison Ginza

Chuo-ku, Tokyo

R-002

Esty Maison Azabunagasaka

Minato-ku, Tokyo

R-003

Esty Maison Ebisu II

R-004

Esty Maison Ebisu

R-005

Esty Maison Kanda

R-006

Esty Maison Kitashinjuku

R-007

Esty Maison Asakusakomagata

Taito-ku, Tokyo

R-008

Esty Maison Kawasaki

Kawasaki-shi,
Kanagawa

R-010

Esty Maison Kameido

Koto-ku, Tokyo

R-011

Esty Maison Meguro

R-012

Esty Maison Sugamo

R-013

Esty Maison Kyobashi

Osaka-shi, Osaka

R-014

Esty Maison Hakuraku

Yokohama-shi,
Kanagawa

R-015

Esty Maison Minamihorie

Osaka-shi, Osaka

R-016

Esty Maison Gotanda (Note 4)

R-017

Esty Maison Oisendaizaka

R-018

Esty Maison
Shinagawa Seaside

Shinagawa-ku,
Tokyo
Shinagawa-ku,
Tokyo
Shinagawa-ku,
Tokyo

R-019

Esty Maison Minamiazabu

Minato-ku, Tokyo

R-021

Esty Maison Kawasaki II

Kawasaki-shi,
Kanagawa

R-022

Esty Maison Azabujuban

Minato-ku, Tokyo

R-023

Esty Maison Itabashihoncho

R-027

Esty Maison
Musashikoyama (Note 5)

R-028

Esty Maison Sendagi (Note 6)

R-030

Esty Maison Hakatahigashi

Residence

Shibuya-ku,
TokyoShibuya-ku,
Tokyo
Chiyoda-ku,
TokyoShinjuku-ku,
Tokyo

Meguro-ku,
TokyoToshima-ku,
Tokyo

Itabashi-ku,
Tokyo
Shinagawa-ku,
TokyoBunkyo-ku,
TokyoFukuoka-shi,
Fukuoka

17

Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
6,575

8,110

1,761

2,090

2,020

2,520

910

971

1,531

2,040

1,513

1,960

2,052

2,690

2,337

3,040

1,453

1,970

1,059

1,430

1,579

1,980

2,860

3,210

871

1,010

1,105

1,200

3,010

3,760

2,665

3,220

2,106

2,600

1,286

1,460

1,849

2,530

2,703

3,140

960

1,070

994

1,250

668

842

2,147

2,800

Usagetype

Property
No.
(Note 1)Name ofreal estate, etc.

R-033

Prime Maison Musashinonomori

Kodaira-shi,
Tokyo

R-034

Prime Maison Higashisakura

Nagoya-shi, Aichi

R-035

Prime Maison Kayabakoen

Nagoya-shi, Aichi

R-036

Esty Maison Sangenjaya II

R-037

Esty Maison Itabashi C6

R-038

Sha Maison Stage
Hakata (Note 7)

R-039

Esty Maison Kinshicho

R-040

Esty Maison Musashikoganei

R-041

Prime Maison Gokiso

Nagoya-shi, Aichi

R-042

Prime Maison Yuhigaoka

Osaka-shi, Osaka

R-043

Prime Maison Kitatanabe

Osaka-shi, Osaka

R-044

Prime Maison Momochihama

Fukuoka-shi,
Fukuoka

R-045

Esty Maison Akihabara

Taito-ku, Tokyo

R-046

Esty Maison Sasazuka

Shibuya-ku,
Tokyo

R-047

Prime Maison Ginza East

Chuo-ku, Tokyo

R-048

Prime Maison Takami

Nagoya-shi, Aichi

R-049

Prime Maison Yadaminami

Nagoya-shi, Aichi

R-050

Prime Maison Teriha

Fukuoka-shi,
Fukuoka

R-051

Esty Maison Higashishirakabe

Nagoya-shi, Aichi

R-052

Esty Maison Sengoku

R-053

Esty Maison Daizawa

R-054

Esty Maison Togoshi

R-055

Esty Maison Nishitemma

R-056

Esty Maison Shirokanedai

R-057

Esty Maison Higashishinjuku

R-058

Esty Maison Motoazabu

Residence

Location(Note 2)

Setagaya-ku,
Tokyo
Itabashi-ku,
TokyoFukuoka-shi,
Fukuoka
Sumida-ku,
Tokyo
Koganei-shi,Tokyo

Bunkyo-ku,
Tokyo
Setagaya-ku,
Tokyo
Shinagawa-ku,
Tokyo
Osaka-shi, Osaka
Shinagawa-ku,
TokyoShinjuku-ku,
Tokyo
Minato-ku, Tokyo

18

Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
1,882

2,390

1,526

1,820

804

989

753

986

2,420

3,030

2,265

2,860

1,183

1,510

1,728

2,220

1,904

2,280

904

1,200

603

767

1,898

2,300

1,872

2,230

3,352

3,890

6,123

7,380

1,042

1,190

828

965

1,140

1,380

1,632

1,850

1,319

1,520

2,207

2,650

1,697

2,140

1,574

1,890

2,361

3,190

1,581

2,160

1,496

2,000

Usagetype

Property
No.
(Note 1)Name ofreal estate, etc.

Location(Note 2)Meguro-ku,
TokyoShinagawa-ku,
Tokyo
Nakano-ku,
TokyoNakano-ku,
TokyoNakano-ku,
TokyoNakano-ku,
Tokyo
Suginami-ku,
Tokyo
Sumida-ku,
Tokyo

R-059

Esty Maison Toritsudaigaku

R-060

Esty Maison
Musashikoyama II

R-061

Esty Maison Nakano

R-062

Esty Maison Shinnakano

R-063

Esty Maison Nakanofujimicho

R-064

Esty Maison Tetsugakudo

R-065

Esty Maison Koenji

R-066

Esty Maison Oshiage

R-067

Esty Maison Akabane

Kita-ku, Tokyo

R-068

Esty Maison Oji

Kita-ku, Tokyo

R-069

Prime Maison Waseda

Shinjuku-ku,
Tokyo

R-070

Prime Maison Hatchobori

Chuo-ku, Tokyo

R-071

Prime Maison Jimbocho

R-072

Prime Maison
Gotenyama East

R-073

Sha Maison Stage Akihabara

R-074

Esty Maison Aoi

R-075

Esty Maison Yakuin

R-076

Esty Maison Kinshicho II

R-077

Esty Maison Ojima

Koto-ku, Tokyo

R-078

Prime Maison Fujimidai

Nagoya-shi, Aichi

R-079

Esty Maison Tsurumai

Nagoya-shi, Aichi

R-080

Prime Maison Morishita

Koto-ku, Tokyo

R-081

Prime Maison Shinagawa

R-082

Prime Maison Odorikoen

R-083

Prime Maison Minami 2-jo

R-084

Prime Maison Kamokamogawa

Residence

Chiyoda-ku,
Tokyo
Shinagawa-ku,
Tokyo
Chiyoda-ku,
Tokyo
Nagoya-shi, Aichi
Fukuoka-shi,
Fukuoka
Sumida-ku,
Tokyo

Shinagawa-ku,
Tokyo
Sapporo-shi,
Hokkaido
Sapporo-shi,
Hokkaido
Sapporo-shi,
Hokkaido

19

Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
833

1,080

980

1,230

1,865

2,150

966

1,140

945

1,150

1,089

1,320

1,119

1,430

2,358

2,990

3,188

3,780

1,539

1,930

1,479

2,040

1,350

1,740

1,831

2,300

2,858

3,610

583

652

2,321

2,650

2,527

2,850

7,779

10,7008,174

12,100

2,122

2,290

4,476

5,100

1,793

2,260

1,856

2,300

2,988

3,280

1,774

2,070

1,145

1,290

Usagetype

Property
No.
(Note 1)Name ofreal estate, etc.

Location(Note 2)

R-085

Prime Maison
Central Park(Note 8)

R-086

Sha Maison Stage Yahiro

R-087

Prime Maison Ebisu

R-089

Esty Maison Unomori

R-091

Sha Maison Stage Hino

Hino-shi, Tokyo

R-092

Prime Maison
Yokohama Nihon-odori

Yokohama-shi,
Kanagawa

R-093

Kobe Women’s Student Housing

Kobe-shi, Hyogo

R-094

Prime Maison Shibuya

R-095

Prime Maison Hatsudai

R-096

Esty Maison Uemachidai

R-098
R-099

Prime Maison
Shirokane-takanawa
Prime Maison
Ichigayayamabushicho

R-100

Esty Maison Morishita

R-101

Prime Maison
Shirokanedai Tower

R-102

Prime Maison Otsuka

R-103

Prime Maison Asakusabashi

R-104

Prime Maison Daikanyama

Residence

R-105
R-106

Prime Maison
Gotenyama West
Esty Maison
Toyosu Residence (Note 9)

R-108

Esty Maison Ijiri

R-109

Prime Maison Mitatsunamachi

R-110

Prime Maison Hongo

R-111

Prime Maison Kuramae

R-112

Esty Maison Yokohamaaobadai (Note 10)

R-113

Esty Maison Shizuoka Takajo

R-114

Sha Maison Stage Hirose-dori

Fukuoka-shi,
Fukuoka
Sumida-ku,
TokyoShibuya-ku,
TokyoYokkaichi-shi,
MieShibuya-ku,
TokyoShibuya-ku,
Tokyo
Osaka-shi, Osaka
Minato-ku, Tokyo
Shinjuku-ku,
Tokyo
Sumida-ku,
Tokyo
Shinagawa-ku,
TokyoToshima-ku,
Tokyo
Taito-ku, Tokyo
Meguro-ku,
TokyoShinagawa-ku,
Tokyo
Koto-ku, Tokyo
Fukuoka-shi,
FukuokaMinato-ku,
TokyoBunkyo-ku,
Tokyo
Taito-ku,
Tokyo
Yokohama-shi,
Kanagawa
Shizuoka-shi,
Shizuoka
Sendai-shi,
Miyagi20Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
2,084

2,535

1,793

2,160

4,211

5,960

740

836

1,352

1,580

4,513

5,260

5,113

6,360

2,361

2,800

2,872

3,400

1,041

1,260

4,739

5,530

4,056

4,290

621

740

7,851

11,200

3,629

4,900

1,656

2,190

2,492

3,510

3,385

4,920

5,592

7,760

431

437

2,026

2,530

2,573

3,050

2,159

2,600

2,977

3,660

659

656

966

972

Usagetype

Property
No.
(Note 1)Name ofreal estate, etc.

R-115

Esty Maison
HIGASHIBETSUIN

R-116

Esty Maison Kayaba

R-117

Esty Maison
SHIRAKABEMINAMI

R-118

Prime Maison Shimokitazawa

R-119

Prime Maison Meguro

R-120

Prime Maison Ryogoku

R-121

Prime Maison Nakameguro

R-122

Prime Maison Itabashi

R-123

Prime Maison
EGOTANOMORI(Note 11)

R-124

Prime Maison Waseda dori

R-125

Esty Maison Noborito

Residence

Location(Note 2)

Nagoya-shi,
Aichi
Nagoya-shi,
Aichi
Nagoya-shi,
Aichi
Setagaya-ku,
Tokyo
Meguro-ku,
Tokyo
Sumida-ku,
Tokyo
Meguro-ku,
TokyoItabashi-ku,
Tokyo
Nakano-ku,
TokyoShinjuku-ku,
TokyoKawasaki-shi,
Kanagawa

Subtotal-

21

Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests-

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
2,259

2,230

931

958

679

708

2,624

2,840

2,344

2,560

1,561

1,630

10,155

11,200

4,920

5,220

10,94010,900

2,250

2,690

520

510

263,174

321,654

Usagetype

Officebuilding

PropertyNo.

Name ofreal estate, etc.

Location

O-001

Garden City Shinagawa
Gotenyama

O-002

Gotenyama SH Building

Shinagawa-ku,
Tokyo
Shinagawa-ku,
Tokyo

O-003

Hommachi Minami Garden City

(Note 1)

O-004
O-005

Hommachi Garden City
(Office building portion)
HK Yodoyabashi Garden
Avenue (Note 12)(Note 2)

Osaka-shi, Osaka
Osaka-shi, Osaka
Osaka-shi, Osaka

O-006

Hirokoji Garden Avenue

Nagoya-shi, Aichi

O-007

Akasaka Garden City

Minato-ku,
Tokyo

SubtotalType of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)69,40866,70044,142

57,10041,74354,60035,71644,200

4,168

6,330

6,090

7,450

49,94952,800--251,219

289,180

Osaka-shi, Osaka

Real estate trust
beneficiary interests

16,59016,700Subtotal--

16,59016,700

Total

-

-

530,985

627,534

H-001
Hotel

Hommachi Garden City
(Hotel portion)(Note 1)

"Property No." is classified by use of properties held by SHR, whereby each property is given a number and any of the following letters: R
representing residences, O representing office buildings, and H representing hotels, respectively.
(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 themis 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 the appraisaldate) for each fiscal period ended April, and the value stated in each real estate appraisal report (with the end of October as the appraisaldate) or the survey value stated in each real estate survey value report (with the end of October as the survey date) 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 part of the
exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site: 387,036/426,933 (or approximately
90.7%)).
(Note 5) For Esty Maison Musashikoyama, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest to part ofthe exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site: 117,678/127,609 (orapproximately 92.2%)).
(Note 6) For Esty Maison Sendagi, 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: 89,730/103,842 (or approximately
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 fixed-termleasehold 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 land is 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-termleasehold 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 tocollectively as Esty Maison Yokohama-aobadai and the total amount of each building is indicated.
(Note 11) Prime Maison EGOTANOMORI is a property on a leased land owned by the Urban Renaissance Agency and for which a general
fixed-term leaseholdright is established with a lease term of 70 years from April 24, 2015.
(Note 12) For HK Yodoyabashi Garden Avenue, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest to allof the exclusively owned portions of the 1st through 6th floors above ground of the building and for the accompanying right of site (ratio ofright of site: 405,901/1,000,000 (or approximately 40.6%)).

22

The following table sets forth the change in status of leasing of real estate, etc. owned by SHR.

Usage
type

Property
Name ofNo.
real estate, etc.

17th fiscal period
18th fiscal period
From: Nov. 1, 2022 To: Apr. 30, 2023
From: May 1, 2023 To: Oct. 31, 2023
Property-related
Property-related
operatingoperatingTotal Occupancy
Ratio toTotal Occupancy
Ratio torevenuerevenuenumber of
rate
Total
number of
rate
Total
fiscalfiscaltenants [at the end
Property-related tenants [at the end
Property-related[during[during[at the end of fiscal
operating [at the end of fiscal
operatingfiscalfiscalof fiscal
period]revenueof fiscal
period]revenueperiod]period]period](%)(%)
period](%)(%)(million(million(Note 1)
(Note 2)
(Note 4)(Note 1)
(Note 2)
(Note 4)yen)yen)(Note 3)

R-001
R-002
R-003
R-004
R-005
R-006
R-007
R-008
R-010
R-011
Residence

R-012
R-013
R-014
R-015
R-016
R-017
R-018
R-019
R-021
R-022
R-023

Esty Maison
Ginza
Esty Maison
Azabunagasaka
Esty Maison
Ebisu II
Esty Maison
Ebisu
Esty Maison
Kanda
Esty Maison
Kitashinjuku
Esty Maison
Asakusakomagata
Esty Maison
Kawasaki
Esty Maison
KameidoEsty Maison
MeguroEsty Maison
SugamoEsty Maison
Kyobashi
Esty Maison
Hakuraku
Esty Maison
Minamihorie
Esty Maison
GotandaEsty Maison
Oisendaizaka
Esty Maison
ShinagawaSeasideEsty Maison
Minamiazabu
Esty Maison
Kawasaki II
Esty Maison
Azabujuban
Esty Maison
Itabashihoncho(Note 3)

1

95.1

176

1.1

1

97.7

178

1.2

1

95.5

49

0.3

1

94.9

50

0.3

1

89.4

55

0.4

1

95.7

59

0.4

1

96.1

24

0.2

1

100.0

23

0.2

1

94.2

45

0.3

1

97.4

47

0.3

1

97.6

48

0.3

1

97.7

48

0.3

1

98.6

67

0.4

1

94.6

66

0.4

1

98.0

76

0.5

1

93.3

75

0.5

1

98.9

54

0.4

1

100.0

54

0.4

1

95.0

30

0.2

1

91.2

30

0.2

1

97.3

52

0.3

1

100.0

51

0.3

1

96.3

89

0.6

1

97.2

91

0.6

1

98.3

30

0.2

1

100.0

31

0.2

1

97.2

34

0.2

1

98.6

34

0.2

1

95.8

95

0.6

1

95.7

94

0.6

1

97.9

79

0.5

1

98.4

82

0.5

1

97.5

62

0.4

1

95.6

66

0.4

1

96.2

30

0.2

1

96.2

33

0.2

1

99.3

64

0.4

1

97.7

65

0.4

1

97.5

65

0.4

1

96.0

64

0.4

1

98.4

30

0.2

1

100.0

30

0.2

23

Usagetype

Property
Name ofNo.
real estate, etc.

17th fiscal period
18th fiscal period
From: Nov. 1, 2022 To: Apr. 30, 2023
From: May 1, 2023 To: Oct. 31, 2023
Property-related
Property-related
operatingoperatingTotal Occupancy
Ratio toTotal Occupancy
Ratio torevenuerevenuenumber of
rate
Total
number of
rate
Total
fiscalfiscaltenants [at the end
Property-related tenants [at the end
Property-related[during[during[at the end of fiscal
operating [at the end of fiscal
operatingfiscalfiscalof fiscal
period]revenueof fiscal
period]revenueperiod]period]period](%)(%)
period](%)(%)(million(million(Note 1)
(Note 2)
(Note 4)(Note 1)
(Note 2)
(Note 4)yen)yen)(Note 3)

R-027
R-028
R-030
R-033
R-034
R-035
R-036
R-037
R-038
R-039
R-040
Residence R-041
R-042
R-043
R-044
R-045
R-046
R-047
R-048
R-049
R-050
R-051
R-052

Esty Maison
Musashikoyama
Esty Maison
Sendagi
Esty Maison
Hakatahigashi
Prime Maison
Musashinonomori
Prime Maison
Higashisakura
Prime Maison
Kayabakoen
Esty Maison
Sangenjaya II
Esty Maison
Itabashi C6
Sha Maison
Stage Hakata
Esty 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(Note 3)

1

100.0

31

0.2

1

100.0

32

0.2

1

100.0

23

0.2

1

97.3

23

0.2

1

98.6

87

0.6

1

99.3

87

0.6

1

97.9

65

0.4

1

100.0

67

0.4

1

96.3

53

0.3

1

88.0

49

0.3

1

96.5

30

0.2

1

96.3

31

0.2

1

97.0

24

0.2

1

97.1

23

0.2

1

97.6

77

0.5

1

96.5

81

0.5

1

100.0

96

0.6

1

100.0

95

0.6

1

97.2

35

0.2

1

100.0

36

0.2

1

96.1

56

0.4

1

97.1

56

0.4

1

92.5

65

0.4

1

93.2

64

0.4

1

96.4

30

0.2

1

100.0

30

0.2

1

100.0

23

0.2

1

100.0

22

0.1

1

100.0

69

0.5

1

100.0

69

0.4

1

93.7

56

0.4

1

97.5

56

0.4

1

98.1

91

0.6

1

96.6

92

0.6

1

100.0

179

1.2

1

98.1

182

1.2

1

92.7

32

0.2

1

92.8

33

0.2

1

96.2

28

0.2

1

85.0

27

0.2

1

100.0

53

0.3

1

100.0

53

0.3

1

100.0

46

0.3

1

100.0

46

0.3

1

98.4

38

0.3

1

100.0

38

0.3

24

Usagetype

Property
Name ofNo.
real estate, etc.

17th fiscal period
18th fiscal period
From: Nov. 1, 2022 To: Apr. 30, 2023
From: May 1, 2023 To: Oct. 31, 2023
Property-related
Property-related
operatingoperatingTotal Occupancy
Ratio toTotal Occupancy
Ratio torevenuerevenuenumber of
rate
Total
number of
rate
Total
fiscalfiscaltenants [at the end
Property-related tenants [at the end
Property-related[during[during[at the end of fiscal
operating [at the end of fiscal
operatingfiscalfiscalof fiscal
period]revenueof fiscal
period]revenueperiod]period]period](%)(%)
period](%)(%)(million(million(Note 1)
(Note 2)
(Note 4)(Note 1)
(Note 2)
(Note 4)yen)yen)(Note 3)

R-053
R-054
R-055
R-056
R-057
R-058
R-059
R-060
R-061
R-062
R-063
Residence

R-064
R-065
R-066
R-067

Esty Maison
Daizawa
Esty Maison
Togoshi
Esty Maison
Nishitemma
Esty Maison
Shirokanedai
Esty Maison
Higashishinjuku
Esty Maison
Motoazabu
Esty Maison
Toritsudaigaku
Esty Maison
Musashikoyama
II
Esty Maison
NakanoEsty Maison
Shinnakano
Esty Maison
Nakanofujimicho
Esty Maison
Tetsugakudo
Esty Maison
KoenjiEsty Maison
Oshiage
Esty Maison
AkabaneR-068 Esty Maison Oji
R-069
R-070
R-071
R-072
R-073

Prime Maison
WasedaPrime Maison
Hatchobori
Prime Maison
JimbochoPrime Maison
Gotenyama East
Sha Maison
Stage Akihabara

R-074 Esty Maison Aoi
R-075

Esty Maison
Yakuin(Note 3)

1

98.8

61

0.4

1

96.5

62

0.4

1

100.0

51

0.3

1

97.9

51

0.3

1

94.5

50

0.3

1

100.0

51

0.3

1

91.4

73

0.5

1

93.8

78

0.5

1

94.2

48

0.3

1

91.8

48

0.3

1

100.0

43

0.3

1

100.0

44

0.3

1

100.0

24

0.2

1

93.5

24

0.2

1

97.4

30

0.2

1

100.0

30

0.2

1

93.9

54

0.4

1

96.9

53

0.3

1

100.0

28

0.2

1

95.5

28

0.2

1

100.0

28

0.2

1

95.6

29

0.2

1

100.0

35

0.2

1

95.4

35

0.2

1

96.4

35

0.2

1

98.5

34

0.2

1

98.0

73

0.5

1

100.0

75

0.5

1

98.2

99

0.6

1

98.8

98

0.6

1

97.8

49

0.3

1

100.0

49

0.3

1

97.0

46

0.3

1

93.9

45

0.3

1

90.6

36

0.2

1

100.0

37

0.2

1

97.3

54

0.4

1

95.9

52

0.3

1

100.0

88

0.6

1

96.5

86

0.6

1

100.0

15

0.1

1

100.0

15

0.1

1

96.5

70

0.5

1

89.0

67

0.4

1

99.3

75

0.5

1

94.9

76

0.5

25

Usagetype

Property
Name ofNo.
real estate, etc.

17th fiscal period
18th fiscal period
From: Nov. 1, 2022 To: Apr. 30, 2023
From: May 1, 2023 To: Oct. 31, 2023
Property-related
Property-related
operatingoperatingTotal Occupancy
Ratio toTotal Occupancy
Ratio torevenuerevenuenumber of
rate
Total
number of
rate
Total
fiscalfiscaltenants [at the end
Property-related tenants [at the end
Property-related[during[during[at the end of fiscal
operating [at the end of fiscal
operatingfiscalfiscalof fiscal
period]revenueof fiscal
period]revenueperiod]period]period](%)(%)
period](%)(%)(million(million(Note 1)
(Note 2)
(Note 4)(Note 1)
(Note 2)
(Note 4)yen)yen)(Note 3)

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

Esty 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 Yahiro
Prime Maison
Ebisu
Sha Maison
Stage
Kanazawa
Nishiizumi(Note 3)

1

97.7

230

1.5

1

98.0

234

1.5

1

98.7

257

1.7

1

96.6

265

1.7

1

92.0

69

0.5

1

94.0

70

0.5

1

100.0

156

1.0

1

100.0

157

1.0

1

98.9

56

0.4

1

96.5

55

0.4

1

95.5

59

0.4

1

96.8

59

0.4

1

92.4

115

0.8

1

96.9

120

0.8

1

97.7

75

0.5

1

99.1

75

0.5

1

97.3

51

0.3

1

99.1

49

0.3

1

99.4

90

0.6

1

98.7

89

0.6

1

100.0

56

0.4

1

100.0

56

0.4

1

100.0

114

0.7

1

97.3

113

0.7

1

100.0

40

0.3

－

－

21

0.1

1

100.0

27

0.2

1

100.0

27

0.2

1

98.1

49

0.3

1

98.1

50

0.3

1

95.9

142

0.9

1

97.5

140

0.9

1

100.0

219

1.4

1

100.0

220

1.4

1

91.5

64

0.4

1

96.6

63

0.4

1

95.1

82

0.5

1

96.5

81

0.5

1

94.7

33

0.2

1

97.5

33

0.2

1

90.3

113

0.7

1

96.2

116

0.8

1

91.6

101

0.7

1

93.6

105

0.7

(Note5)

R-089
R-091
R-092
R-093
R-094
R-095
R-096
R-098
R-099

Esty Maison
Unomori
Sha Maison
Stage Hino
Prime Maison
Yokohama
Nihon-odori
Kobe Women’sStudent Housing
Prime Maison
ShibuyaPrime Maison
Hatsudai
Esty Maison
Uemachidai
Prime Maison
Shirokane-takanawa
Prime Maison
Ichigayayamabushicho

26

Usagetype

Property
Name ofNo.
real estate, etc.

17th fiscal period
18th fiscal period
From: Nov. 1, 2022 To: Apr. 30, 2023
From: May 1, 2023 To: Oct. 31, 2023
Property-related
Property-related
operatingoperatingTotal Occupancy
Ratio toTotal Occupancy
Ratio torevenuerevenuenumber of
rate
Total
number of
rate
Total
fiscalfiscaltenants [at the end
Property-related tenants [at the end
Property-related[during[during[at the end of fiscal
operating [at the end of fiscal
operatingfiscalfiscalof fiscal
period]revenueof fiscal
period]revenueperiod]period]period](%)(%)
period](%)(%)(million(million(Note 1)
(Note 2)
(Note 4)(Note 1)
(Note 2)
(Note 4)yen)yen)(Note 3)

R-100
R-101
R-102
R-103
R-104
R-105
R-106

Esty Maison
Morishita
Prime Maison
Shirokanedai
Tower
Prime Maison
OtsukaPrime Maison
Asakusabashi
Prime Maison
Daikanyama
Prime Maison
Gotenyama West
Esty Maison
ToyosuResidence

R-108 Esty Maison Ijiri
R-109
R-110
Residence R-111
R-112
R-113
R-114
R-115
R-116
R-117
R-118
R-119
R-120
R-121

Prime Maison
Mitatsunamachi
Prime Maison
Hongo
Prime Maison
Kuramae
Esty Maison
Yokohama-aobadai
Esty Maison
Shizuoka Takajo
Sha Maison
StageHirose-dori
Esty Maison
HIGASHIBETSU
IN
Esty Maison
KayabaEsty Maison
SHIRAKABE
MINAMI
Prime Maison
Shimokitazawa
Prime Maison
MeguroPrime Maison
Ryogoku
Prime Maison
Nakameguro(Note 3)

1

96.6

20

0.1

1

96.6

18

0.1

1

94.7

235

1.5

1

93.9

234

1.5

1

95.1

113

0.7

1

96.0

115

0.7

1

88.9

50

0.3

1

89.9

48

0.3

1

97.2

73

0.5

1

92.4

76

0.5

1

85.3

116

0.8

1

96.5

117

0.8

1

97.4

483

3.1

1

96.2

486

3.2

1

100.0

13

0.1

1

100.0

13

0.1

1

100.0

56

0.4

1

95.3

56

0.4

1

90.9

69

0.5

1

95.5

62

0.4

1

85.5

61

0.4

1

95.6

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

29

0.2

1

96.2

30

0.2

1

100.0

20

0.1

1

100.0

20

0.1

1

100.0

59

0.4

1

92.1

59

0.4

1

100.0

48

0.3

1

88.4

50

0.3

1

100.0

33

0.2

1

90.5

37

0.2

1

97.0

221

1.4

1

97.4

223

1.5

27

Usagetype

Property
Name ofNo.
real estate, etc.

17th fiscal period
18th fiscal period
From: Nov. 1, 2022 To: Apr. 30, 2023
From: May 1, 2023 To: Oct. 31, 2023
Property-related
Property-related
operatingoperatingTotal Occupancy
Ratio toTotal Occupancy
Ratio torevenuerevenuenumber of
rate
Total
number of
rate
Total
fiscalfiscaltenants [at the end
Property-related tenants [at the end
Property-related[during[during[at the end of fiscal
operating [at the end of fiscal
operatingfiscalfiscalof fiscal
period]revenueof fiscal
period]revenueperiod]period]period](%)(%)
period](%)(%)(million(million(Note 1)
(Note 2)
(Note 4)(Note 1)
(Note 2)
(Note 4)yen)yen)(Note 3)

Prime Maison
ItabashiPrime Maison
R-123 EGOTANOMORI
ResidencePrime Maison
R-124
Waseda dori
Esty Maison
R-125
Noborito
R-122

1

95.6

117

0.8

1

98.3

118

0.8

1

97.3

609

4.0

1

98.1

623

4.1

1

93.7

55

0.4

1

97.3

55

0.4

－

－

－

－

1

93.8

2

0.0

12

97.2

8,642

56.3

12

97.3

8,690

56.5

1

84.5

1,633

10.6

1

84.3

1,547

10.1

1

100.0

1,088

7.1

1

100.0

1,088

7.1

1

100.0

1,311

8.5

1

100.0

1,323

8.6

1

100.0

903

5.9

1

100.0

903

5.9

1

100.0

167

1.1

1

100.0

173

1.1

1

100.0

208

1.4

1

100.0

211

1.4

1

87.4

999

6.5

1

93.5

1,042

6.8

Subtotal

4

93.6

6,313

41.1

4

94.4

6,291

40.9

HommachiH-001 Garden City
(Hotel portion)

1

100.0

402

2.6

1

100.0

402

2.6

Subtotal

1

100.0

402

2.6

1

100.0

402

2.6

Total

16

96.5

15,358

100.0

16

96.7

15,384100.0

Subtotal

Officebuilding

Hotel(Note 3)

Garden City
O-001 Shinagawa
Gotenyama
Gotenyama SH
O-002
Building
HommachiO-003 Minami Garden
City
Hommachi
Garden City
O-004
(Office building
portion)HK
O-005 Yodoyabashi
Garden Avenue
Hirokoji Garden
O-006
AvenueAkasaka Garden
O-007
City

28

(Note 1)(Note 2)

(Note 3)(Note 4)(Note 5)

"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 the end 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 the office 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 18,
respectively as of the end of the 17th fiscal period (from Nov, 1, 2022 to Apr. 30, 2023) and 19, 16, 8, 7 and 18, respectively as of the endof the 18th fiscal period (from May 1, 2023 to Oct. 31, 2023).
"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 byusage type to the subtotal of leasable area of each property classified by usage type, and the figure indicated in the "Total" column is theratio of the 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. Both figures have been rounded to the nearest first decimal place.
"Property-related operating revenue [during fiscal period]" indicates the property-related operating revenue of each property for each fiscal
period, rounded down to the nearest million yen.
Figures under the heading "Ratio to Total Property-related operating revenue" indicate the ratio of property-related operating revenue ofeach property for each fiscal period or the subtotal of property-related operating revenue of each property classified by usage type for eachfiscal period to total property-related operating revenue of each property for each fiscal period, rounded to the nearest first decimal place.
SHR disposed "Sha Maison Stage Kanazawa Nishiizumi" on August 3, 2023. Accordingly, "Property-related operating revenue [during
fiscal period]" and "Ratio to Total Property-related operating revenue" for the property in the above table indicate the figures for theduration SHR owned it in the 18th fiscal period (from May 1, 2023 to Oct. 31, 2023).

29

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
The following are the details for investment securities as of the end of the fiscal period under review.
Valuation

Book value
Asset name

Asset type

Quantity(Note1)

Unit
price

Price
(thousand yen)

Unit
price

Price
(thousand yen)

Valuation
gain or loss
(thousand yen)

Remarks

Silent partnership equity
interests with Godo Silent partnership
Kaisha Gemini1 as the equity interests
operator－－

455,423－

455,423－(Note 2)

Silent partnership equity
interests with Godo Silent partnership
Kaisha Gemini2 as the equity interests
operator－－

213,231－

213,231－(Note 3)－－－

668,655－

668,655

－

－

Total
(Note 1)
(Note 2)

(Note 3)

"Valuation" is the book value.
The 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 groundand 11th floor through 19th floor above ground of the "Akasaka Garden City" building, as well as the accompanying right of site (ratio ofright of site: 662,768/1,000,000 (or approximately 66.3%)), which has not yet been acquired by SHR.
The underlying asset refers to the trust beneficiary interest in real estate of the "Ningyocho PREX".

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.
Fair value(thousand yen) (Note 1)(thousand yen)Amount(Note 2)due after 1 year

Category

Type

Transaction other thanmarket transaction

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

4,750,000－(2,775)

Transaction other thanmarket transaction

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

103,301,000

90,632,000－(Note 3)

108,051,000

90,632,000(2,775)

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

30

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" and "6. Details of Investment Securities" 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. andinfrastructure 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.

31Capital Expenditures for Property
1. Scheduled Capital Expenditures
The principal capital expenditures associated with renovation work, etc. currently planned for properties owned
by SHR are as follows. Please note that some of the planned construction costs may be classified as expenses
for accounting purposes.
Planned Construction Costs(million yen) (Note)
Name of real estate, etc.
(location)

Esty Maison Toyosu Residence(Koto-ku, Tokyo)
Prime Maison Central Park
(Fukuoka-shi, Fukuoka)
Esty Maison Shizuoka Takajo(Shizuoka-shi, Shizuoka)
Esty Maison Toritsudaigaku(Meguro-ku, Tokyo)(Note)

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

Planned period

From: November 2023
To: October 2024
From: October 2023
To: April 2024
From: November 2023
To: March 2024
From: November 2023
To: March 2024

Total

Payment for current Amount alreadyfiscal period
paid

672

－

－

238

－

－

63

－

－

39

－

－

"Planned Construction Costs" refers to the amount obtained by multiplying the total cost required for construction by the proportion ofownership or quasi co-ownership interest in the compartmentalized ownership held by SHR (if SHR owns a quasi co-ownership interest in thereal estate trust beneficiary interest with compartmentalized ownership as trust property, the total cost is multiplied by the ownership ratio of
the compartmentalized ownership, and then the quasi co-ownership amount is multiplied by percentage), if SHR owns the sectional
ownership or the quasi co-ownership interest in the real estate trust beneficiary right of the property subject to the construction.

2. Capital Expenditures During the Period
An overview of capital expenditures for properties owned by SHR during the fiscal period under review is asfollows. In addition, the total capital expenditure for the current fiscal period was 1,016 million yen, and a totalof 1,424 million yen of construction work was carried out, including repair expenses of 408 million yenclassified as expenses for the current fiscal period.
Name of real estate, etc.
(location)
Prime Maison Musashinonomori

PurposeLarge-scale repairs(Kodaira-shi, Tokyo)
Sha Maison Stage Hirose-dori

Large-scale repairs(Sendai-shi, Miyagi)
Esty Maison Nakano

Large-scale repairs(Nakano-ku, Tokyo)

PeriodPayment amount(million yen)

From: May 2023

129

To: October 2023
From: May 2023

105

To: October 2023
From: May 2023

74

To: October 2023

Other Capital Expenditures

707

Total

1,016

3. 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 to secure
expenses for repair works expected in the future, is not included in the cash reserves.

32

Condition of Expenses and Debts
1. Details of Expenses Pertaining to Management, etc.
Item

(Unit: thousand yen)
18th fiscal period
From: May 1, 2023
To: Oct. 31, 2023

17th fiscal period
From: Nov. 1, 2022
To: Apr. 30, 2023

Asset management fee

943,182

1,073,228

Asset custody fee

10,571

10,550Administrative service fees

49,386

49,846

Directors’compensations

3,600

3,600

307,726

408,726

1,314,467

1,545,952

Other expenses
Total(Note)In addition to the amounts shown above, the "Asset management fee" contains the asset management fees of 660 thousand yen for the 17th fiscal
period, which is included in the book value of the silent partnership equity interest. Moreover, the "Asset management fee" contains the asset
management fees of 24,300 thousand yen for the 18th fiscal period, which is included in the other selling expenses for the disposition of properties, andthe asset management fees of 1,470 thousand yen for the 18th fiscal period, which is included in the book value of the real estate, etc. for theacquisition of properties.

33

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)(millionyen)(Note)

Sha Maison Stage
Kanazawa Nishiizumi――

August 3, 2023

1,100

984

76

Esty Maison Noborito

October 3, 2023

490

―

―

―

―

Gotenyama SH Building(10% quasi co-ownership)――

October 31,2023

7,000

4,904

1,020

Total

―

490

―

8,100

5,889

1,097

(Note)"Acquisition price" and "Disposition 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 applies 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 realestate, etc.

TransactiondateAcquisition

Esty Maison
Noborito

October 3,
2023

Disposition

Sha Maison
Stage Kanazawa
Nishiizumi

August 3,
2023

Disposition

Gotenyama SH
Building(10% quasi
co-ownership)

October 31,
2023

Acquisition/
Appraisal
disposition
value
Type of asset
price(million yen)
(Note 1)(million yen)
Real estate
trust
beneficiaryinterests
Real estate
trust
beneficiaryinterests
Real estate
trust
beneficiaryinterests

Appraiser

Date ofappraisal

510

JLL Morii
Valuation &Advisory K.K.

September
1, 2023990

DAIWA REALESTATEAPPRAISAL
CO., LTD.

April 30,
2023

6,350

Tanizawa Sogo
Appraisal Co.,Ltd.

April 30,
2023

490

1,100

7,000

(Note 2)

(Note 1) The appraisal value stated above is derived by applying the "Real Estate Appraisal Standards; Particulars; Chapter 3: Appraisal on Value ofReal Estate Subject to Securitization."(Note 2) The amount is calculated by multiplying the real estate appraisal value of 63,500 million yen related to the entire property by the quasi
co-ownership interest of the trust beneficiary right subject to the disposition of 10%.

(2) Others
Not applicable.

34

4. Status of Transactions with Interested Persons, etc.(Note 1)(1) Status of Transactions
Not applicable.
(2) Amount of Commission Fee, etc.

Category

Management fee(Note 2)

(Note 1)

(Note 2)
(Note 3)

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

1,104,723

Breakdown of transactions with interested persons, etc.
Amount paid(B)(thousand yen)Payee

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

Sekisui House Real Estate Tokyo, Ltd.

500,574

45.3

Sekisui House Real Estate Chubu, Ltd.

66,461

6.0

Sekisui House GM Partners, Ltd.

50,339

4.6

Sekisui House, Ltd.

26,3992.4

Sekisui House Real Estate Kyushu, Ltd.

17,833

1.6

Sekisui House Real Estate Kansai, Ltd.

4,053

0.4

Sekisui House Real Estate Tohoku, Ltd.

1,050

0.1

"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.
"Management fee" has been rounded down to the nearest thousand yen.
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.

Sekisui House Real Estate Tokyo, Ltd
Sekisui House Real Estate Chubu, Ltd.
Sekisui House Real Estate Kyushu, Ltd.
Sekiwa Total Support Co., ltd.
Sekisui House GM Partners, Ltd.
Sekisui House Real Estate Kansai, Ltd.
Sekisui House Real Estate Tohoku, Ltd.

347,980
130,927
37,03531,824
18,3503,839
1,496

thousand yen
thousand yen
thousand yen
thousand yen
thousand yen
thousand yen
thousand yen

5. Status, etc. of Transactions with the Asset Management Company Pertaining to Business
Operations of Concurrent 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 notconcurrently 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.

35

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 directorsof 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.

36

1. Financial Statements(1) Balance Sheet(Thousand yen)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Income taxes refund receivable
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Long-term prepaid expenses
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets
Total assets

37

17th Fiscal Period(As of April 30, 2023)

18th Fiscal Period(As of October 31, 2023)

10,950,123
16,451,343
190,5201,243
308,728
170,352(2,791)
28,069,520

15,062,344
19,762,618
238,031－
310,685
10,031(2,764)35,380,946

185,350,612(25,844,317)
159,506,295

184,234,435(27,880,590)
156,353,844

1,623,170(365,798)
1,257,371
2,419,653(490,235)
1,929,418
1,015,435(355,857)
659,578368,656,815
532,009,479

1,568,777(381,283)
1,187,493
2,410,950(540,306)
1,870,644
1,150,034(441,710)
708,324
364,940,202
525,060,508

5,979,645
8,095
5,987,741

5,924,527
21,045
5,945,572

684,9101,530,346
643,969－
159,804
3,019,030
541,016,251

668,655
1,530,346
626,899
154
167,648
2,993,704
533,999,785

94,19625,201
119,398569,205,170

80,99816,801
97,799569,478,531

(Thousand yen)
17th Fiscal Period(As of April 30, 2023)

18th Fiscal Period(As of October 31, 2023)

923,839－3,000,000
40,050,000
1,082,585
249,713－－692,786
7,099
8,932
46,014,955

1,015,564
3,000,000
10,000,000
31,545,000
2,522,935
305,4101,749
372,140
692,918
2,775
4,821
49,463,317

28,500,000
186,692,000

21,500,000
191,197,000

14,380,909
229,572,909
275,587,864

14,091,351
226,788,351
276,251,668

161,283,304

161,283,304

128,598,415

128,598,415

Liabilities
Current 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
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Total non-current liabilities
Total liabilities
Net assets
Unitholders’equity
Unitholders’capital
SurplusCapital surplus
Deduction from capital surplus
Allowance for temporary difference adjustments
Other deduction from capital surplus
Total deduction from capital surplus
Capital surplus, net
Voluntary reserve
Reserve for reduction entry
Reserve for temporary difference adjustments
Total voluntary reserve
Unappropriated retained earnings
Total surplus
Total unitholders’equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

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

38

*3

*4

*1

－
(3,999,964)(3,999,964)
124,598,450
911,281
194,129
1,105,411
6,637,238
132,341,100
293,624,405(7,099)(7,099)293,617,306
569,205,170

*5
*3

*4

*1

(70,103)(3,999,964)(4,070,068)
124,528,346－－－
7,417,987
131,946,334
293,229,639(2,775)(2,775)
293,226,863
569,478,531

(2) Statement of Income and Retained Earnings(Thousand yen)
17th Fiscal Period(From November 1, 2022
to April 30, 2023)
Operating revenue
Rent revenue – real estate
Other lease business revenue
Gain on sale of real estate properties
Gain on investments in silent partnership
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fees
Asset custody fees
Administrative service fees
Directors’compensation
Provision of allowance for doubtful accounts
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
Interest on refund
Settlement money from sale of real estate properties
Total non-operating income
Non-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
Ordinary income
Income before income taxes
Income taxes – current
Income taxes – deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings

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

39

18th Fiscal Period(From May 1, 2023
to October 31, 2023)*1*1

14,908,879
449,239－
7,818
15,365,937

*1
*1
*2

14,894,546
489,891
1,097,186
4,021
16,485,645*1

6,543,453
943,182
10,571
49,3863,600
540
307,1857,857,920*1

6,596,150
1,073,228
10,55049,846
3,600－
408,726
8,142,102

7,508,017

8,343,542

135
768
－
1,005
1,909

133
712
491
－
1,336

646,240
73,855
126,993
8,400
13,1983,394
872,083
6,637,843
6,637,843
605－
605
6,637,238－
6,637,238

704,948
74,741
129,981
8,400
13,1982,236
933,506
7,411,373
7,411,373
2,874
(154)
2,720
7,408,653
9,334
7,417,987

(3) Statement of Changes in Net Assets
17th Fiscal Period (From November 1, 2022 to April 30, 2023)(Thousand yen)
Unitholders' equity
SurplusCapital surplus
Unitholders’capitalBalance at beginning of period

161,283,304

Capitalsurplus

Deductionfrom capitalsurplusCapitalsurplus, net

128,598,415(3,999,964)

124,598,450

Changes of items during period
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments
Distribution from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during
periodBalance at end of period

Voluntary reserve
Reserve forReserve for
Total
temporary
reduction
voluntarydifference
entry
reserveadjustments
993,722417,038
1,410,761(82,441)(82,441)(222,908)(222,908)

－

－

－

－

(82,441)(222,908)(305,349)*1 161,283,304

128,598,415(3,999,964)

124,598,450

911,281

194,129

1,105,411(Thousand yen)
Unitholders' equity

Balance at beginning of period
Changes of items during period
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments
Distribution from surplus
Net income
Net changes of items otherthan unitholders' equity
Total changes of items during
periodBalance at end of period

Valuation and translation adjustments
Totalunitholders’equity82,441－－－

222,908－－－(7,509,860)(7,509,860)(7,509,860)(7,509,860)

6,637,238

6,637,238

6,637,238

6,637,238

294,497,026

Deferred gains Total valuation andor losses
translation
on hedges
adjustments

Total
net assets

Surplus
UnappropriatedTotal
retained earnings
surplus7,204,510
133,213,722(12,202)(12,202)294,484,824

5,103

5,103

5,103

(567,271)(872,621)(872,621)

5,103

5,103

(867,518)

6,637,238

132,341,100

293,624,405(7,099)(7,099)293,617,306

40

18th Fiscal Period (From May 1, 2023 to October 31, 2023)(Thousand yen)

Unitholders’capitalBalance at beginning of period
Changes of items during period
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments
Distribution from surplus
Distributions in excess ofearnings from allowance fortemporary difference
adjustments
Net income
Net changes of items otherthan unitholders’equity
Total changes of items during
periodBalance at end of period

161,283,304

Unitholders’equity
SurplusCapital surplus
Deduction from capital surplus
Allowance for
Other
Total deduction
Capitaltemporary deduction fromfromsurplusdifference
unitholders'unitholders'adjustments capital surplus capital surplus
128,598,415－(3,999,964)(3,999,964)(70,103)

Capitalsurplus, net

124,598,450(70,103)(70,103)－－(70,103)－(70,103)(70,103)*1 161,283,304

128,598,415(70,103)(3,999,964)(4,070,068)

124,528,346(Thousand yen)

Unitholders’equity
Surplus

Balance at beginning of period
Changes of items during period
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments
Distribution from surplus
Distributions in excess ofearnings from allowance fortemporary difference
adjustments
Net income
Net changes of items otherthan unitholders’equity
Total changes of items during
periodBalance at end of period

Voluntary reserve
UnappropriatedReserve forretained
Reserve fortemporary Total voluntary
difference
reserveearnings
reduction entry
adjustments
911,281
194,129
1,105,411
6,637,238(911,281)(194,129)

Total
surplusTotal
unitholders’equity132,341,100

293,624,405(911,281)

911,281－－(194,129)

194,129－－(7,733,315)(7,733,315)(7,733,315)(70,103)(70,103)7,408,653

7,408,653

7,408,653(911,281)(194,129)(1,105,411)

780,749(394,766)(394,766)－－－

7,417,987

131,946,334

293,229,639

41

Balance at beginning of period
Changes of items during period
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments
Distribution from surplus
Distributions in excess ofearnings from allowance fortemporary difference
adjustments
Net income
Net changes of items otherthan unitholders’equity
Total changes of items during
periodBalance at end of period(Thousand yen)
Valuation and translation
adjustments
Total
Deferred gains Total valuation
net assets
or losses
and translation
on hedges
adjustments(7,099)(7,099) 293,617,306－－(7,733,315)(70,103)7,408,653
4,323

4,323

4,323

4,323

4,323

(390,442)(2,775)(2,775)

293,226,863

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

42

(4) Statement of Cash Distributions
Item
Ⅰ. Unappropriated retained earnings
Ⅱ. Reversal of voluntary reserve
Reversal of reserve for reduction entry
Reversal of reserve for temporary difference
adjustments
Ⅲ Amount added to distributions in excess of earnings
Allowance for temporary difference adjustments
Ⅳ. Capitalization
Of which, reversal of allowance for temporary
difference adjustments
Ⅴ. Cash distributions[Cash distributions per unit]
Of which, distributions of earnings[Of which, distributions of earnings per unit]
Of which, allowance for temporary difference
adjustments[Of which, distributions in excess of earnings per unit
[associated with the allowance for temporary
difference adjustments]]
Ⅵ. Retained earnings carried forward
Method for calculating cash distributions

17th Fiscal Period(From November 1, 2022
to April 30, 2023)
6,637,238,451 yen

18th Fiscal Period(From May 1, 2023
to October 31, 2023)
7,417,987,467 yen

911,281,820 yen

- yen

*1

194,129,553 yen

- yen

*2

70,103,712 yen
- yen

*2

*2

1,248,722,370 yen
4,323,083 yen- yen

4,323,083 yen

7,803,419,442 yen[1,781 yen]
7,733,315,730 yen[1,765 yen]

8,657,808,432 yen[1,976 yen]
7,409,086,062 yen[1,691 yen]

70,103,712 yen*21,248,722,370 yen[16 yen][285 yen]

9,334,094 yen
The basic policy is to distribute inexcess of an amount equivalent to
90% of the amount of earnings
available for distribution of SHR
provided in Article 67-15,
Paragraph 1 of the Act on Special
Measures Concerning Taxation as
set forth in Article 46, Paragraph
1, Item 2 of the Articles ofIncorporation of SHR.

4,578,322 yen
The basic policy is to distribute inexcess of an amount equivalent to
90% of the amount of earnings
available for distribution of SHR
provided in Article 67-15,
Paragraph 1 of the Act on Special
Measures Concerning Taxation as
set forth in Article 46, Paragraph
1, Item 2 of the Articles ofIncorporation of SHR.

Based on such policy, SHR
decided to distribute
7,733,315,730 yen, which is
obtained by adding a reversal of
the reserve for temporary
difference adjustments(194,129,553 yen) and a reversalof the reserve for reduction
entry(911,281,820 yen) tounappropriated retained earnings
as distribution of earnings

Based on such policy, SHR
decided to distribute
7,409,086,062 yen, which isunappropriated retained earnings
as distribution of earnings

In addition, pursuant to the policy
for "distribution of money inexcess of profits" as set forth in
Article 46, Paragraph 2 of the
Articles of Incorporation of SHR,SHR decided to make a
distribution for the 70,103,712 yen
in allowance for temporary
difference adjustments for the
purpose of reflecting the effect on
distributions of tax and accounting
differences.

In addition, pursuant to the policy
for "distribution of money inexcess of profits" as set forth in
Article 46, Paragraph 2 of the
Articles of Incorporation of SHR,SHR decided to make a
distribution for the 1,248,722,370
yen in allowance for temporary
difference adjustments for the
purpose of reflecting the effect on
distributions of tax and accounting
differences.

43

(5) Statement of Cash Flows(Thousand yen)
17th Fiscal Period(From November 1, 2022
to April 30, 2023)

18th Fiscal Period(From May 1, 2023
to October 31, 2023)

6,637,843
2,629,281
13,1988,400(135)
720,095
7,546(125,262)(8,275)(18,637)(117,546)(87,023)(678,924)(19,277)

7,411,373
2,639,988
13,1988,400(133)
779,689(47,511)125,262(1,957)
17,069(94,624)
1,439,327
372,140
131－
16,976
8,978,259
135(695,165)(584)
8,282,644

5,889,063
33,526
18,584,946
133(725,047)
119
17,860,150(947,849)(5,995)
21,642(221,507)
1,521,103(1,493,347)(2,625)(1,128,578)(1,336,351)(15,374)
14,868－402,890(692,447)(7,843)(1,634,258)－(7,700,000)
18,800,000(11,100,000)(7,509,703)(7,509,703)(355,637)
27,757,104
27,401,467

4,000,000(1,000,000)
20,210,000(24,210,000)(7,802,396)(8,802,396)
7,423,495
27,401,467
34,824,962

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
Proceeds from refunds of investment securities
Purchases of investment securities
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
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

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

44

*1

*1

(6) Notes to Financial Statements

1. Organization
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 TrustAct”).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 (totalacquisition cost of 114.3 billion yen) 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 the dissolved 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
an absorption-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 thesurviving company and the former SHAM being the dissolved company, and changed its company name to thecurrent 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 provisions 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
Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of SHR, whichwere prepared 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 andmodifications have been made to the financial statements issued domestically in order to present them in aformat which is more familiar 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.

45

3. Summary of Significant Accounting Policies
1. Standards and methods forvaluation of assets

2. Method of depreciation andamortization of non-current assets

3. Accounting for deferred assets

4. Standards for recording allowance

5. Standards for revenue and expense
recognition

Securities
Other securities
Silent partnership equity interests
The amount equivalent to the share of the net profit or loss of the silent partnershipwill be incorporated.
(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
10-61 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 the remaining lifeof 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 amortized utilizing the straight-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).
Allowance for doubtful accounts
To prepare for possible losses arising from default on receivables, the estimateduncollectable amount is recorded by examining collectability on a case-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) whensuch performance obligations are satisfied areas follows.
1) Sale of real estate, etc.
With regard to the sale of real estate, etc., income is calculated based on when thebuyer gains control over the real estate, etc., at the point in time the delivery
obligation stipulated in the contract relating to the sale of the real estate issatisfied.
2) Utilities revenue
Utilities revenue mainly represents water utility revenue. With regard to water
utility revenue, revenue is calculated based on the provision of electricity, water,etc. to lessees, as customers, under lease contracts for real estate, etc., and theagreements 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 amount after deducting theamount to be paid to other parties from the amount received as the payment forelectricity, gas, etc. supplied by those other parties.

Rent revenue
Other leasebusiness revenue

SHR generally recognizes rent revenue, including fixed rent
revenues, variable rent revenues and common area charges, onan accrual basis over the term of each lease agreement.
Other lease business revenue is recognized in accordance withJapanese GAAP, typically as the amounts under the relevant
agreements become due.

46

(2) Accounting for property taxes
In accounting for property tax, city planning tax, depreciable asset tax, etc. on realestate, etc., of the tax amount assessed and determined, the amount corresponding 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 real estate ortrust beneficiary interests of real estate as assets in trust, is not recognized as expenses
related to rent business in the corresponding fiscal period but included in theacquisition cost of the property.
Property taxes capitalized as a part of the acquisition cost amounted to 396 thousand
yen for the 18th fiscal period.
6. Method of hedge accounting(1) Method of hedge accounting
Deferral hedge accounting is applied. However, the special accounting treatment isapplied 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 and anassessment of the effectiveness is thus omitted.
(5)Special accounting treatment
Under the special accounting treatment, interest rate swaps are not measured at fairvalue, but the differential paid or received under the swap agreements is recognized andincluded in or deducted from interest expense. Any amounts received under interest rate
swaps subject to such accounting treatment are not recognized as income on theaccompanying statements of income and retained earnings but rather have the effect of
decreasing interest expenses.
7. Scope of funds in the statement of
The funds (cash and cash equivalents) in the statement of cash flows consist of cash on
cash flows
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 from the date ofacquisition, which are readily convertible to cash and bear only an insignificant risk ofprice fluctuation.
8. Other significant matters serving as
Accounting for trust beneficiary interests of real estate, etc. as assets in trust
basis for preparation of financial
Concerning trust beneficiary interests of real estate, etc. as assets in trust, all accounts
statementsof assets and liabilities within assets in trust as well as all accounts of revenue andexpenses from the assets in trust are recognized in the relevant account items on thebalance sheet and the statement of income and retained earnings.
The following material items of the assets in trust recognized in the relevant accountitems 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 in progress in trust;
Leasehold rights in trust3) Tenant leasehold and security deposits in trust47

4. Notes to Balance Sheet*1. Minimum net assets designated in Article 67-4 of the Investment Trust Act(Thousand yen)
17th Fiscal Period(As of April 30, 2023)

18th Fiscal Period(As of October 31, 2023)
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.
(Thousand yen)
18th Fiscal Period(As of October 31, 2023)

17th Fiscal Period(As of April 30, 2023)
Total amount of commitment line

15,000,000

15,000,000－－

15,000,000

15,000,000

Balance executed as loans
Unused line of credit*3. Status of cancellation of own investment units
17th Fiscal Period(As of April 30, 2023)
Total number of units cancelled
Total amount cancelled

18th Fiscal Period(As of October 31, 2023)

49,651 units

49,651 units

3,999,964 thousand yen

3,999,964 thousand yen(Note) There were no cancellations of own investment units during the fiscal period under review.

*4. Matters concerning accounting for reserve and reversal of reserve for temporary difference adjustments(Thousand yen)
18th Fiscal Period(As of October 31, 2023)

17th Fiscal Period(As of April 30, 2023)
Gain on negative goodwill (*)
Initial amount

1,556,827

1,556,827

Balance at beginning of period

417,038

194,129

Reserve amount during period－－

Reversal amount during period

222,908

194,129

Balance at end of period

194,129－

Appropriated for distributions

Appropriated for distributions

Reason for reserve and reversal(*)This is part of the gain on negative (*) This is part of the gain on negative
goodwill that occurred in the past
goodwill that occurred in the pastfiscal years, and from the fiscal period fiscal years, and from the fiscal period
following the fiscal period in which it following the fiscal period in which it
was accumulated, SHR plans to
was accumulated, SHR has planned toreverse 1% or more of thereverse 1% or more of thecorresponding amount divided
corresponding amount divided
equally over 50 years and apply it to equally over 50 years and apply it tocash distributions.
cash distributions, and then complete
to reverse in the current fiscal period.

48

*5. Allowance for Temporary Difference Adjustments
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
1. Reason for provision, related assets etc. and amount of provision
Related assets,
etc.

Reason forprovision

InitialamountBalance at
beginning of
periodAmount ofprovision
during period

Amount ofreversalduring period

Balance at
end of period

Reason forreversal

Buildings intrust, etc.

Excessdepreciation
related todepreciation atmerger

63,004－63,004－63,004－

Deferred gains
or losses onhedgesIncurrence ofloss onvaluation ofinterest swaps

7,099

－

7,099

－

7,099

－

70,103－70,103－70,103Total

2. Specific method of reversal
Item
Buildings in trust, etc.
Deferred gains or losses on hedges

Method of reversal
In principle, the allowance for temporary difference adjustments related to amerger is not reversed.
Scheduled to be reversed based on changes in fair value of derivatives as hedging
instruments.

49

5. Notes to Statement of Income and Retained Earnings*1. Breakdown of property-related operating revenue and expenses
17th Fiscal Period(From November 1, 2022
to April 30, 2023)
A.

B.

C.

Property-related operating revenue
Rent revenue – real estate
Rental income
Other
Other lease business revenue
Utilities revenue
Other
Total property-related operating revenue
Property-related operating expenses
Expenses related to rent businessSubcontract expenses
Property management fees
Trust fees
Utilities expenses
Property and other taxes

14,540,845
368,034

14,908,879

216,387
232,852

Insurance expenses
Repair expenses
Depreciation
Other expenses related to rent businessTotal property-related operating expenses
Property-related operating income [A − B]

449,239
15,358,119(Thousand yen)
18th Fiscal Period(From May 1, 2023
to October 31, 2023)

14,521,624
372,922257,660
232,230

621,291
475,41349,506468,192
1,066,052

623,370
481,934
38,173438,325
1,134,233

17,504
392,5132,627,759
825,218

17,824
408,033
2,637,563
816,690

6,543,453
6,543,453
8,814,666

14,894,546

489,891
15,384,437

6,596,150
6,596,150
8,788,287*2. Breakdown of gain on sale of real estate properties
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)(Thousand yen)
Sha Maison Stage Kanazawa Nishiizumi
Proceeds from sale of real estate property
Cost of real estate property
Other sales expenses
Gain on sale of real estate property

1,100,000
984,307
38,77676,915(Thousand yen)

Gotenyama SH Building
Proceeds from sale of real estate property
Cost of real estate property
Other sales expenses
Gain on sale of real estate property

7,000,000
4,904,756
1,074,973
1,020,270

6. Notes to Statement of Changes in Net Assets*1 Total number of authorized investment units and total number of investment units issued
17th Fiscal Period(From November 1, 2022
to April 30, 2023)

18th Fiscal Period(From May 1, 2023
to October 31, 2023)

Total number of authorized investment units

20,000,000units

20,000,000units

Total number of investment units issued

4,381,482units

4,381,482units50

7. Notes to Statement of Cash Distributions*1 Reserve for temporary difference adjustments
17th Fiscal Period(From November 1, 2022
to April 30, 2023)
With regard to the reserve for temporary difference adjustments,
SHR plans to drawdown at least 1% of the reserve for each fiscal
period (corresponding to the amount of the reserve expensed
equally over 50 years) and appropriate the amount for cash
distributions, starting from the fiscal period following the fiscal
period in which the reserve was made. SHR decided to
drawdown 194,129,553 yen for the 17th fiscal period.

18th Fiscal Period(From May 1, 2023
to October 31, 2023)―*2 Allowance for Temporary Difference Adjustments
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
1. Reason for provision, related assets etc. and amount of provision

Related assets, etc.

Reason for provision(Thousand yen)Amount of allowancefor temporary
difference adjustments

Buildings in trust, etc.

Excess depreciation related to depreciation at merger

63,004

Deferred gains or losses on hedges

Incurrence of loss on valuation of interest swaps

7,099

Total

70,103

2. Specific method of reversal
Item
Buildings in trust, etc.
Deferred gains or losses on hedges

Method of reversal
In principle, the allowance for temporary difference adjustments related to amerger is not reversed.
Scheduled to be reversed based on changes in fair value of derivatives as hedging
instruments.

18th Fiscal Period (From May 1, 2023 to October 31,2023)
1. Reason for provision, related assets etc. and amount of provision

Related assets, etc.

Reason for provision(Thousand yen)Amount of allowancefor temporary
difference adjustments

Buildings in trust, etc.

Excess depreciation related to depreciation at merger

303,722

Gain on sale of real estate properties

Record the split sale expences as combined calculation

945,000

Total

1,248,722

2. Reason for reversal, related assets,etc. and amount of reversal

Related assets, etc.
Deferred gains or losses on hedges

Reason for reversal
Changes in fair value of derivatives as hedging instruments.
Total(Thousand yen)Amount of allowancefor temporary
difference adjustments
4,323
4,323

3. Specific method of reversal
Item
Buildings in trust, etc.
Deferred gains or losses on hedges
Gain on sale of real estate properties

Method of reversal
In principle, the allowance for temporary difference adjustments related to amerger is not reversed.
Scheduled to be reversed based on changes in fair value of derivatives as hedging
instruments.
Scheduled to be reversed as of sale of applicable properties.

518. Notes to Statement of Cash Flows*1 Reconciliation of cash and cash equivalents at end of period to the corresponding balance sheet items
17th Fiscal Period(From November 1, 2022
to April 30, 2023)(Thousand yen)
18th Fiscal Period(From May 1, 2023
to October 31, 2023)

Cash and deposits

10,950,123

15,062,344

Cash and deposits in trust

16,451,343

19,762,618

Cash and cash equivalents

27,401,467

34,824,962

9. Lease Transactions
Operating lease transactions as lessee
Future minimum lease payments
17th Fiscal Period(As of April 30, 2023)(Thousand yen)
18th Fiscal Period(As of October 31, 2023)

Due within 1 year

779,496

779,496

Due after 1 year

41,141,003

40,751,255

41,920,499

41,530,751

Total

Operating lease transactions as lessor
Future minimum lease income
17th Fiscal Period(As of April 30, 2023)(Thousand yen)
18th Fiscal Period(As of October 31, 2023)

Due within 1 year

10,507,655

7,965,655

Due after 1 year

14,022,741

12,977,202

24,530,397

20,942,858

Total

52

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
growth of its investment assets as well as efficient management and stability of management, SHR shallprocure funds through borrowings or the issuance of investment corporation bonds for the purposes ofutilizing such funds for the acquisition of assets, payments of repair expenses or distributions, operationsof SHR, repayment of obligations or other.
For derivative transactions, the policy is that derivative 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 with suchfund procurement by diversifying fund procurement sources and means and by maintaining the ratio ofinterest-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 rates basedon rules that set forth the basic policy for handling derivative transactions and risk management.
Investment securities are investments in TK (tokumei kumiai) and are exposed to the credit risk of theissuer and the risk of fluctuations in the value of real estate, etc.
(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
the derivative transactions.

53

2. Matters concerning fair value of financial instruments
The carrying amount and fair value of financial instruments as of April 30, 2023 and October 31, 2023,
and the difference between them are as follows.
17th Fiscal Period (As of April 30, 2023)
Investments in TK (tokumei kumiai) real estate equity interest (Note 3) are not included in the table below.
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 thebook value. Also, as “Tenant leasehold and security deposits in trust” are immaterial, related notes areomitted.
(Thousand yen)Book value recordedon the balance sheet

Fair value

Difference(1) Current portion of investment corporation bonds

3,000,000

3,018,073

18,073(2) Current portion of long-term loans payable

40,050,000

40,064,785

14,785(3) Investment corporation bonds

28,500,000

28,295,100(204,899)(4) Long-term loans payable

186,692,000

186,584,845(107,154)

258,242,000

257,962,805(279,194)(7,099)(7,099)－(7,099)(7,099)－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 isbased on the method of calculating by discounting the combined total of principal and interest by a reasonably estimatedinterest rate applicable 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, thefair value is approximately the same as the book value and is thus stated at that book value (provided, however, that for
long-term loans 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 of principal and interest accounted for with the interest rate swap is discounted by the rate assumed in theevent 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 asimilar new drawdown corresponding to the remaining period.
(5) Derivative transactions
Please refer to “12. Derivative Transactions”.

54

18th Fiscal Period (As of October 31, 2023)
Investments in TK (tokumei kumiai) real estate equity interest (Note 3) are not included in the table below.
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 thebook value. Also, as “Tenant leasehold and security deposits in trust” are immaterial, related notes areomitted.
(Thousand yen)Book value recordedon the balance sheet

Fair value

Difference(1) Current portion of investment corporation bonds

10,000,000

10,011,381

11,381(2) Current portion of long-term loans payable

31,545,000

31,542,285(2,714)(3) Investment corporation bonds

21,500,000

21,002,050(497,950)(4) Long-term loans payable

191,197,000

188,384,417(2,812,582)

254,242,000

250,940,134(3,301,865)(2,775)(2,775)－(2,775)(2,775)－

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 isbased on the method of calculating by discounting the combined total of principal and interest by a reasonably estimatedinterest rate applicable 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, thefair value is approximately the same as the book value and is thus stated at that book value (provided, however, that for
long-term loans 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 of principal and interest accounted for with the interest rate swap is discounted by the rate assumed in theevent 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 asimilar new drawdown corresponding to the remaining period.
(5) Derivative transactions
Please refer to “12. Derivative Transactions”.

55

(Note 2) Repayment schedule of investment corporation bonds and loans after the closing date
17th Fiscal Period (As of April 30, 2023)(Thousand yen)
Due after
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

Investment corporation bonds

3,000,000

12,000,000

4,000,000

2,000,000－

10,500,000

Long-term loans payable

40,050,000

32,505,000

32,543,000

19,637,000

28,280,000

73,727,000

18th Fiscal Period (As of October 31, 2023)(Thousand yen)
Due after
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

Investment corporation bonds

10,000,000

9,000,000

2,000,000－－

10,500,000

Long-term loans payable

31,545,000

34,213,000

25,780,000

30,197,000

29,027,000

71,980,000(Note 3) Investments in TK (tokumei kumiai) real estate equity interest
In accordance with the treatment stipulated in Paragraph 24-16 of “Implementation Guidance on Accounting for Fair Value
Measurement” (ASBJ Guidance No.31, June 17, 2021, Accounting Standards Board of Japan), matters described in Paragraph4-1 of “Implementation Guidance on Fair Value Measurement of Financial Instruments” (ASBJ Guidance No.19, March 31,2020) have been omitted. The carrying amount on the balance sheet for investments in TK real estate equity interest according to
the above implementation is 684,910 thousand yen for the 17th fiscal period and 668,655 thousand yen for the 18th fiscal period.

11. Securities
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.

12. Derivative Transactions
1. Derivatives to which hedge accounting is not applied
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
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.

56

17th Fiscal Period (As of April 30, 2023)(Thousand yen)
Method of hedge
accounting

Type ofderivativetransactions

Contract amount
Main hedged item

Of which,over 1 year

Fair value

Calculation
method offair value

Interest rate swap
transaction
Floating interest
Long-term loans
Principal method
6,650,000－(7,099)(Note1)rate receivablepayableand fixed interest
rate payable
Interest rate swap
transaction
Special accounting
Floating interest
Long-term loans
treatment for
115,961,000
96,951,000(Note2)－rate receivablepayableinterest rate swaps
and fixed interest
rate payable(Note1) Fair value is quoted by counterparties based on the prevailing market interest rates.
(Note2) 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)”).

18th Fiscal Period (As of October 31, 2023)(Thousand yen)
Method of hedge
accounting

Type ofderivativetransactions

Contract amount
Main hedged item

Of which,over 1 year

Fair value

Calculation
method offair value

Interest rate swap
transaction
Floating interest
Long-term loans
Principal method
4,750,000－(2,775)(Note1)rate receivablepayableand fixed interest
rate payable
Interest rate swap
transaction
Special accounting
Floating interest
Long-term loans
treatment for
103,301,000
90,632,000(Note2)－rate receivablepayableinterest rate swaps
and fixed interest
rate payable(Note1) Fair value is quoted by counterparties based on the prevailing market interest rates.
(Note2) 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
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.

5714. Income Taxes
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause
17th Fiscal Period(As of April 30, 2023)
Deferred tax assets
Valuation difference on assets acquired due to merger
Amortization of leasehold rights in trust
Sale cost of split sale
Deferred gains or losses on hedges
Accrued business taxes not deductible from taxable income
Deferred tax assets (subtotal)
Valuation allowance for total deductible temporary difference
Total deferred tax assets
Net deferred tax assets

1,482,723
82,086－2,233－
1,567,042(1,567,042)－－(Thousand yen)
18th Fiscal Period(As of October 31, 2023)
1,467,053
98,235297,297873
154
1,863,613(1,863,459)
154
154

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

Statutory tax rate
[Adjustments]
Deductible cash distribution
Changes in valuation allowance
Reversal of reserve for reduction entry
Sale cost of split sale
Other
Effective income tax rate after application of tax-effect accounting

17th Fiscal Period(As of April 30, 2023)
31.46

(%)
18th Fiscal Period(As of October 31, 2023)
31.46(36.98)
1.20
4.32
－
0.01
0.01

(36.75)
1.31
－
4.01
0.01
0.04

15. Profit or Loss of Affiliates Accounted for Under the Equity Method
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.

16. Transactions with Related Parties
1. Parent company and major corporate unitholders.
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.
2. Subsidiaries and affiliates.
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.

58

3. Sister companies.
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.
4. Directors and major individual unitholders.
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.

17. Revenue Recognition
1. Breakdown of revenue from contracts with customers
17th Fiscal Period (From November 1, 2022 to April 30, 2023)(Thousand yen)
Revenue from contracts
with customers (Note1)

Net sales to external customers－

Sale of real estate, etc.
Utilities revenue

216,387

216,387－

15,149,550

216,387

15,365,937

Other
Total

－

(Note2)(Note1) 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 otherassets and utilities revenue.
(Note2) Regarding the sale of real estate, etc., in accordance with Article 48, Paragraph 2 of the Regulations on Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 47, 2006), gain on the sale of real estate properties, etc. is shown inthe statement of income and retained earnings after deducting cost of real estate property and direct sales expenses from theproceeds from the sale of real estate, etc.

18th Fiscal Period (From May 1, 2023 to October 31, 2023)(Thousand yen)
Revenue from contracts
with customers (Note1)
Sale of real estate, etc.

Net sales to external customers

8,100,000

Utilities revenue
Other
Total

(Note2)

1,097,186

257,660

257,660－

15,130,798

8,357,660

16,485,645(Note1) 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 otherassets and utilities revenue.
(Note2) Regarding the sale of real estate, etc., in accordance with Article 48, Paragraph 2 of the Regulations on Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 47, 2006), gain on the sale of real estate properties, etc. is shown inthe statement of income and retained earnings after deducting cost of real estate property and direct sales expenses from theproceeds from the sale of real estate, etc.

59

2. Information to understand revenue from contracts with customers
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
As stated in “3. Summary of Significant Accounting Policies”
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
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
the next fiscal period or thereafter from contracts with customers existing at the end of this fiscal period(1) Balance of contract assets and contract liabilities, etc.
(Thousand yen)
18th Fiscal Period(From May 1, 2023
to October 31, 2023)

17th Fiscal Period(From November 1, 2022
to April 30, 2023)
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)

55,312

52,40452,40455,289

－

－

－

－

－

－

－

－

(2) Transaction prices allocated to the remaining performance obligations
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
As of April 30, 2023, the transaction price allocated to the remaining performance obligations related tothe sale of real estate, etc. is 70,000,000 thousand yen for which the sale and purchase agreement wasentered into on March 29, 2023.
SHR plans to recognize revenue for the remaining performance obligations as follows upon delivery of
the abovementioned real estate.

1

End of October 2023

7,000,000 (10%)(Thousand yen)Calculation period forrevenue recognition
Ending October 2023 (FP 18)

2

End of April 2024

7,000,000 (10%)

Ending April 2024 (FP 19)

3

End of October 2024

7,000,000 (10%)

Ending October 2024 (FP 20)

4End of April 2025

7,000,000 (10%)

Ending April 2025 (FP 21)

5

End of October 2025

7,000,000 (10%)

Ending October 2025 (FP 22)

6

End of April 2026

7,000,000 (10%)

Ending April 2026 (FP 23)

7

End of October 2026

7,000,000 (10%)

Ending October 2026 (FP 24)

8

End of April 2027

7,000,000 (10%)

Ending April 2027 (FP 25)

9End of October 2027

7,000,000 (10%)

Ending October 2027 (FP 26)

10

End of April 2028

7,000,000 (10%)

Ending April 2028 (FP 27)

Planned disposition date

Planned disposition priceWith 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 thevalue of the items provided up to the end of the fiscal period. Accordingly, SHR applies the provisions ofClause 80-22(2) of Accounting Standard for Revenue Recognition and does not include related60

information in the notes on transaction prices allocated to the remaining performance obligations.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
As of October 31, 2023, the transaction price allocated to the remaining performance obligations related
to the sale of real estate, etc. is 63,000,000 thousand yen for which the sale and purchase agreement wasentered into on March 29, 2023.
SHR assumes to recognize revenue for the remaining performance obligations as follows upon delivery ofmentioned real estate.

2

End of April 2024

7,000,000 (10%)(Thousand yen)Calculation period forrevenue recognition
Ending April 2024 (FP 19)

3

End of October 2024

7,000,000 (10%)

Ending October 2024 (FP 20)

4End of April 2025

7,000,000 (10%)

Ending April 2025 (FP 21)

5

End of October 2025

7,000,000 (10%)

Ending October 2025 (FP 22)

6

End of April 2026

7,000,000 (10%)

Ending April 2026 (FP 23)

7

End of October 2026

7,000,000 (10%)

Ending October 2026 (FP 24)

8

End of April 2027

7,000,000 (10%)

Ending April 2027 (FP 25)

9End of October 2027

7,000,000 (10%)

Ending October 2027 (FP 26)

10

End of April 2028

7,000,000 (10%)

Ending April 2028 (FP 27)

Planned disposition date

Planned disposition priceWith 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 thevalue of the items provided up to the end of the fiscal period. Accordingly, SHR applies the provisions ofClause 80-22(2) of Accounting Standard for Revenue Recognition and does not include related
information in the notes on transaction prices allocated to the remaining performance obligations.

18. Asset Retirement Obligations
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
Not applicable.

61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.
17th Fiscal Period(From November 1, 2022
to April 30, 2023)(Thousand yen)
18th Fiscal Period(From May 1, 2023
to October 31, 2023)

Carrying amount
Balance at beginning of period

539,726,627

537,989,124

Amount of increase (decrease) during period(1,737,503)(7,004,088)

Balance at end of period

537,989,124

530,985,035

650,544,000

633,434,000

Fair value at end of period(Note 1) Carrying amount is the book value less accumulated depreciation.
(Note 2) Net increase during the 17th fiscal period is mainly attributable to capital expenditures (890,711 thousand yen), offset by adecrease during the period mainly attributable to depreciation (2,627,759 thousand yen) . Net increase during the 18th fiscal
period is mainly attributable to capital expenditure (1,001,547 thousand yen) and the acquisition of a new property (521,153
thousand yen), offset by a decrease during the period mainly attributable to the disposition of 2 properties (5,889,063
thousand yen) the SHR had owned and depreciation (2,637,563 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 17th and 18th fiscal periods for investment and rental properties
is presented in “5. Notes to Statement of Income and Retained Earnings”.

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
17th Fiscal Period (From November 1, 2022 to April 30, 2023)(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(Thousand yen)
Name of customer

Operating revenue

Sekisui House, Ltd.

1,363,547

62

Name of related segment
Real estate leasing business18th Fiscal Period (From May 1, 2023 to October 31, 2023)(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(Thousand yen)
Name of customer

Operating revenue

Name of related segment

TIS Inc.

2,108,683

Real estate leasing businessSekisui House, Ltd.

1,363,712

Real estate leasing business

21. Per Unit Information
17th Fiscal Period(From November 1, 2022
to April 30, 2023)

18th Fiscal Period(From May 1, 2023
to October 31, 2023)

Net assets per unit

67,013yen

66,924 yen

Net income per unit

1,514yen

1,690 yen

(Note 1) Net income per unit is calculated by dividing net income by the daily weighted average number of investment units.
In addition, diluted net income per unit is not stated because there are no dilutive investment units.
(Note 2) The basis for calculating net income per unit is as follows.
17th Fiscal Period(From November 1, 2022
to April 30, 2023)
Net income (Thousand yen)Amount not attributable to common unitholders(Thousand yen)
Net income attributable to common investment units(Thousand yen)
Average number of investment units during period(Units)22. Significant Subsequent Events
Not applicable

63

18th Fiscal Period(From May 1, 2023
to October 31, 2023)

6,637,238

7,408,653－－

6,637,238

7,408,653

4,381,482

4,381,482

23. Additional Information
1. Disposition of Asset
SHR decided on the disposition of trust beneficiary interest in domestic real estate and entered into apurchase and sale agreement as of March 29, 2023 as follows. The disposition of the quasi co-ownershipinterest in trust beneficiary interest is scheduled to be carried out in 10 equal installments, with 10/100 of
the ownership share to be disposed on each planned disposition date. As of the date of this document, thefirst disposition has been executed, and a gain on sale of real estate properties is expected to be recorded
during each calculation period as follows.
Property name

Type of use

Location

Total disposition
price (Note 1)(million yen)

Planned disposition
date (Note2)

Buyer

Gotenyama SH
Building

Office building

Shinagawa-ku, Tokyo

70,000stated as below

TIS Inc.
(Unit: million yen)

Planned disposition date

Planned disposition price(Note 2)

(Note 1)Gain on disposition(expected) (Note 3)

Calculation period2

End of April 2024

7,000 (10%)

2,079Ending April 2024 (FP 19)

3

End of October 2024

7,000 (10%)

2,092Ending October 2024 (FP 20)

4End of April 2025

7,000 (10%)

2,104Ending April 2025 (FP 21)

5

End of October 2025

7,000 (10%)

2,119Ending October 2025 (FP 22)

6

End of April 2026

7,000 (10%)

2,133Ending April 2026 (FP 23)

7

End of October 2026

7,000 (10%)

2,147Ending October 2026 (FP 24)

8

End of April 2027

7,000 (10%)

2,161Ending April 2027 (FP 25)

9End of October 2027

7,000 (10%)

2,175Ending October 2027 (FP 26)

10

End of April 2028

7,000 (10%)

2,189Ending April 2028 (FP 27)(Note 1) "Total disposition price" and "Planned disposition price" is the sale and purchase price stated in the sale and purchase agreement for

the quasi co-ownership interest in trust beneficiary interest (excluding consumption tax, local consumption tax, commission for sales,
and other various expenses; rounded down to the nearest million yen).
(Note 2) In the event that the "planned disposition date" is not a business day, the said date will be the immediately preceding business day.
(Note 3) "Gain on disposition (expected)" is the approximate value to be recorded on each planned disposition date as of the date of thisdocument and is subject to change.

64

(7) Supplementary Schedules
18th Fiscal Period (From May 1, 2023 to October 31, 2023)
1. Schedule of securities(1) Shares
Not applicable.
(2) Securities other than shares(Thousand yen)Accruedinterest

Prepaid
accruedinterest

Valuation(Note1)

Valuation
profit/loss

Remarks

Type

Brand Name

Face
value

Book
value

TK (tokumei
kumiai) equity
interest

TK (tokumei kumiai)real estate equity interestin Gemini1 GK TK

480,000

455,423－－

455,423－(Note2)

TK (tokumei
kumiai) equity
interest

TK (tokumei kumiai)real estate equity interestin Gemini2 GK TK

220,000

213,231－－

213,231－(Note3)Total

700,000

668,655－－

668,655－－(Note1) “Valuation” is the book value.
(Note2) Asset management refers to silent partnerships 34.55% quasi co-ownership interest of the trust beneficiary interest in realestate regarding the compartmentalized 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 of site (ratio of right of site: 662,768/1,000,000 (or approximately
66.3%)), and has not yet been acquired by SHR.
(Note3) The underlying asset refers to the trust beneficiary interest in real estate of "Ningyocho PREX".

2. Contract amount and fair value of derivative transactions(Thousand yen)Contract amount (Note1)
Category

Transaction other thanmarket transaction
Transaction other thanmarket transaction

Type

Fair value(Note2)

Of which,over 1 year

Interest rate swap transaction
Floating interest rate receivable and fixedinterest rate payable
Interest rate swap transaction
Floating interest rate receivable and fixedinterest rate payable
Total

4,750,000－

103,301,000

90,632,000

108,051,000

90,632,000(2,775)－(Note3)(2,775)(Note1) The contract amount of interest rate swap transactions is based on the notional principal amount.
(Note2) Fair value is quoted by counterparties based on the prevailing market interest rates.
(Note3) The fair value is omitted because the transaction meets the criteria for the special accounting treatment under the AccountingStandards for Financial Instruments.

65

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

Buildings
in trust
Structuresin trust
Machineryandequipment in
Property,trust
plant andTools,
equipment
furniture andfixturesin trust

Balanceat beginningof period

Amount of Amount of
increasedecreaseduringduringperiodperiodBalanceat end ofperiodNet balanceat end ofperiodNotes

2,401,117

156,353,844

*1
*2

or
accumulated
amortization

For theperiod27,880,590

185,350,612

924,631

1,623,170

15,24569,6381,568,777

381,283

32,6691,187,493

2,419,653

19,69928,4022,410,950

540,306

58,0541,870,644

1,015,435

148,872

14,273

1,150,034

441,71090,603

708,324

Land in trust

368,656,815

414,252

4,130,865 364,940,202－－

364,940,202

Subtotal

559,065,688

1,522,700

6,283,988 554,304,400

29,243,891

2,582,445

525,060,508

6,278,442－－

6,278,442

353,915

55,1185,924,527

23,651

15,374－39,025

17,9802,424

21,045

6,302,093

15,374－

6,317,467

371,895

57,543

5,945,572

565,367,781

1,538,075

6,283,988 560,621,867

29,615,786

2,639,988

531,006,080

Leaseholdrights in trust
Intangible
Other
assetsSubtotal
Total

2,040,808 184,234,435

Accumulated depreciation*1*2*1 The increase during the fiscal period under review is mainly attributable to the acquisition of Esty Maison Noborito.
*2 The decrease during the fiscal period under review is attributable to the disposition of Sha Maison Stage Kanazawa Nishiizumi and
Gotenyama SH Building.

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

66

5. Schedule of investment corporation bonds

Name

Issue date

SHI
Fourth Series Unsecured February 28,
Investment Corporation
2014
Bond
SHI
Fifth Series Unsecured August 29,
Investment Corporation
2014
Bond
SHR
First Series Unsecured September 8,
Investment Corporation
2016
Bond
SHR
Third Series Unsecured July 11,
Investment Corporation
2019
Bond (Green Bonds)
SHR
Fourth Series Unsecured July 11,
Investment Corporation
2019
Bond (Green Bonds)
SHR
Fifth Series Unsecured November 1,
Investment Corporation
2019
Bond (Green Bonds)
SHR
Sixth Series Unsecured February 28,
Investment Corporation
2020
Bond (Green Bonds)
SHR
Seventh Series
September 9,
Unsecured Investment
2020
Corporation Bond
(Green Bonds)
SHR
Eighth Series Unsecured September 9,
Investment Corporation
2020
Bond (Green Bonds)
SHR
Ninth Series Unsecured May 19,
Investment Corporation
2021
Bond (Green Bonds)
Total

－

Balance at
Amount ofBalance
beginning of
Coupondecrease during at end of period
Redemption Use of
periodrate
Security
period(Thousanddateproceeds(Thousand(%)(Thousand yen )
yen )
yen )
3,000,000－

3,000,000

1.069

February 28,
2024(Note1)3,000,000－

3,000,000

0.871

August30,20242,000,000－

2,000,000

0.340

September 8,2026

4,000,000－

4,000,000

0.220

July 11,2024

2,500,000－

2,500,000

0.570

July 11,2029(Note 2) Unsecured

5,000,000－

5,000,000

0.220

November 1,
2024

2,000,000－

2,000,000

0.500

February 28,2030

4,000,000－

4,000,000

0.250

September 9,2025

4,000,000－

4,000,000

0.510

September 9,2030

2,000,000－

2,000,000

0.460

May 19,2031

31,500,000－

31,500,000

－

－

－

－

(Note 1) 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 2) The funds are used to repay borrowings or redemption of existing investment corporation bonds, etc.
(Note 3) These investment corporation bonds are equipped with pari passu clause among specified investment corporation bonds.
(Note 4) The following is the maturity schedule of investment corporation bonds within five years of the balance sheet date.

(Thousand yen)Due in1 year or less
Investment Corporation Bonds

10,000,000

1 to 2 years
9,000,000

67

2 to 3 years
2,000,000

3 to 4 years

4 to 5 years－－

6. Schedule of loans payable(Thousand yen)
Category

LenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodMUFG Bank, Ltd.

―

1,230,000

308,000

922,000

Mizuho Bank, Ltd.

―

980,000

245,000

735,000―

900,000

225,000

675,000―

510,000

127,000

383,000―

380,000

95,000285,000

MUFG Bank, Ltd.

4,600,000――

4,600,000

Mizuho Bank, Ltd.

700,000――

700,000

3,700,000――

3,700,000

700,000――

700,000

Development Bank of Japan Inc.

300,000――

300,000

MUFG Bank, Ltd.

750,000――

750,000

Averageinterest
rate(%)(Note 1)

Repayment due date

0.21869

May 31, 2024

1.47450

November 30, 2024

Repayment
methodUse ofproceeds

Security(Note2)

Un-secured
Un-guaranteed

Short-termloanspayableSumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co., Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedNovember 30, 2023
1.00850(Note3)

MUFG Bank, Ltd.

500,000――

500,000

Mizuho Bank, Ltd.

400,000――

400,000

700,000――

700,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedLong-term
loans
payable350,000――

350,000

Mizuho Trust & Banking Co., Ltd.

300,000――

300,000

Resona Bank, Limited

100,000――

100,000

Mizuho Bank, Ltd.

100,000―

100,000―

2,100,000―

2,100,000―

Mizuho Bank, Ltd.

450,000―

450,000―

Sumitomo Mitsui Banking
Corporation

450,000―

450,000―

Development Bank of Japan Inc.

1,000,000―

1,000,000―

700,000――

700,000

Mizuho Bank, Ltd.

1,100,000――

1,100,000

1,100,000――

1,100,000

450,000――

450,000

Mizuho Trust & Banking Co., Ltd.

500,000――

500,000

Resona Bank, Limited

300,000――

300,000

The Norinchukin Bank

300,000――

300,000

Aozora Bank, Ltd.

200,000――

200,000

The Yamaguchi Bank, Ltd.

100,000――

100,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited(Note3)Lump-sumpayment

MUFG Bank, Ltd.

Mizuho Trust & Banking Co., Ltd.

November 30, 2023
1.01850at maturity

0.67400

August 31, 2023

0.68030

August 31, 2023

February 29, 2024

68

0.63800(Note3)

Category

LenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodMUFG Bank, Ltd.

450,000――

450,000

Development Bank of Japan Inc.

600,000――

600,000

THE BANK OF FUKUOKA, LTD.

200,000――

200,000

Shinkin Central Bank

100,000――

100,000

The Senshu Ikeda Bank, Ltd.

100,000――

100,000

The Shizuoka Bank, Ltd.

100,000――

100,000

The 77 Bank, Ltd.

100,000――

100,000

The Hiroshima Bank, Ltd.

100,000――

100,000

Mizuho Bank, Ltd.

200,000――

200,000

200,000――

200,000

400,000――

400,000

Averageinterest
rate(%)(Note 1)

Repayment due date

Repayment
methodUse ofproceeds

Security

February 29, 2024
0.50500

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited(Note3)

August 30, 2024
0.49500

Mizuho Trust & Banking Co., Ltd.

500,000――

500,000

Resona Bank, Limited

300,000――

300,000

The Norinchukin Bank

300,000――

300,000

MUFG Bank, Ltd.

600,000――

600,000

MUFG Bank, Ltd.

1,000,000――

1,000,000

Mizuho Bank, Ltd.

800,000――

800,000

800,000――

800,000

Long-term Sumitomo Mitsui Banking
Corporation
loans
Development Bank of Japan Inc.
payableMUFG Bank, Ltd.

400,000――

400,000

1,810,000――

1,810,000

MUFG Bank, Ltd.

440,000――

440,000

Mizuho Bank, Ltd.

900,000――

900,000

MUFG Bank, Ltd.

600,000――

600,000

Mizuho Bank, Ltd.

200,000――

200,000

Sumitomo Mitsui Trust Bank,
Limited

300,000――

300,000

Mizuho Trust & Banking Co., Ltd.

600,000――

600,000

Resona Bank, Limited

400,000――

400,000

Shinkin Central Bank

300,000――

300,000

MUFG Bank, Ltd.

1,500,000――

1,500,000

MUFG Bank, Ltd.

800,000――

800,000

Mizuho Bank, Ltd.

700,000――

700,000

Development Bank of Japan Inc.

1,200,000――

1,200,000

THE BANK OF FUKUOKA, LTD.

500,000――

500,000

Aozora Bank, Ltd.

300,000――

300,000

The Yamaguchi Bank, Ltd.

500,000――

500,000

MUFG Bank, Ltd.

990,000――

990,000(Note3)0.57000

August 29, 2025

0.59750

August 29, 2025
Lump-sumUn-secured
payment

Un-guaranteed
at maturity
0.60500

September 8, 2026

0.67000

September 8, 2026

0.61000

February 28, 2025

0.67000

February 28, 2025

0.72500

February 27, 2026

0.77880

February 27, 2026

November 30, 2023
0.37000(Note3)

69(Note2)Category

LenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodAverageinterest
rate(%)(Note 1)

Balanceat end ofperiodMUFG Bank, Ltd.

260,000――

260,000

Mizuho Bank, Ltd.

550,000――

550,000

Mizuho Trust & Banking Co., Ltd.

220,000――

220,000

Development Bank of Japan Inc.

220,000――

220,000

Mizuho Bank, Ltd.

176,000――

176,000

2,352,000――

2,352,000

MUFG Bank, Ltd.

750,000―

750,000―

Mizuho Bank, Ltd.

1,050,000―

1,050,000―

600,000―

600,000―

1,050,000―

1,050,000―

Mizuho Trust & Banking Co., Ltd.

650,000―

650,000―

Resona Bank, Limited

950,000―

950,000―

The Norinchukin Bank

750,000―

750,000―

MUFG Bank, Ltd.

650,000―

650,000―

Development Bank of Japan Inc.

550,000―

550,000―

MUFG Bank, Ltd.

500,000――

500,000

Long-term MUFG Bank, Ltd.

500,000――

500,000

Mizuho Bank, Ltd.

100,000――

100,000

The 77 Bank, Ltd.

500,000――

500,000

The Hiroshima Bank, Ltd.

500,000――

500,000

MUFG Bank, Ltd.

1,900,000――

1,900,000

Mizuho Bank, Ltd.

4,200,000――

4,200,000

Sumitomo Mitsui Banking
Corporation

1,900,000――

1,900,000

376,000――

376,000

Repayment due date

Repayment
methodUse ofproceeds

Security

November 30, 2023
0.45254

The Norinchukin Bank

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limitedloans
payableDevelopment Bank of Japan Inc.

(Note3)0.61380

August 29, 2025

0.34000

May 31, 2023

0.41800

May 31, 2023

0.42622

May 31, 2023

0.56500

February 27, 2026
Lump-sumUn-secured
payment

Un-guaranteed
0.63500

February 27, 2026

0.70000

August 31, 2027

0.78300

August 31, 2027

August 30, 2024
0.28568(Note3)
August 30, 2024

MUFG Bank, Ltd.

300,000――

300,000

Mizuho Bank, Ltd.

2,459,000――

2,459,000

Sumitomo Mitsui Banking
Corporation

260,000――

260,000

Mizuho Trust & Banking Co., Ltd.

900,000――

900,000

Development Bank of Japan Inc.

565,000――

565,000

0.48000

February 26, 2027

MUFG Bank, Ltd.

450,000――

450,000

0.56500

February 26, 2027

Mizuho Bank, Ltd.

1,332,000――

1,332,000

390,000――

390,000

0.57500

February 26, 2027

1,350,000――

1,350,000

0.34900(Note3)

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

August 30, 2024
0.35900(Note3)70(Note2)

at maturity

Category

LenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodMUFG Bank, Ltd.

500,000―

500,000―

Mizuho Bank, Ltd.

500,000―

500,000―

500,000―

500,000―

700,000―

700,000―

Mizuho Trust & Banking Co., Ltd.

200,000―

200,000―

Resona Bank, Limited

200,000―

200,000―

The Norinchukin Bank

100,000―

100,000―

MUFG Bank, Ltd.

1,000,000――

1,000,000

Mizuho Bank, Ltd.

800,000――

800,000

700,000――

700,000

400,000――

400,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedAverageinterest
rate(%)(Note 1)

Repayment due date

0.29900

May 31, 2023

0.30900

May 31, 2023

Repayment
methodUse ofproceeds

Security

August 30, 2024
0.39580(Note3)

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedAugust 30, 2024
0.40580(Note3)

Mizuho Trust & Banking Co., Ltd.

400,000――

400,000

Resona Bank, Limited

200,000――

200,000

The Norinchukin Bank

200,000――

200,000

Shinkin Central Bank

200,000――

200,000

0.41388

August 31, 2026

MUFG Bank, Ltd.

1,000,000――

1,000,000

0.55600

August 31, 2026

Long-term
loans
payableLump-sum――

800,000

700,000――

700,000

200,000――

200,000

Mizuho Trust & Banking Co., Ltd.

400,000――

400,000

Resona Bank, Limited

200,000――

200,000

The Norinchukin Bank

500,000――

500,000

MUFG Bank, Ltd.

1,400,000――

1,400,000

Mizuho Bank, Ltd.

2,400,000――

2,400,000

1,000,000――

1,000,000

200,000――

200,000

Mizuho Trust & Banking Co., Ltd.

400,000――

400,000

Resona Bank, Limited

300,000――

300,000

THE BANK OF FUKUOKA, LTD.

300,000――

300,000

The Senshu Ikeda Bank, Ltd.

200,000――

200,000

The 77 Bank, Ltd.

200,000――

200,000

The Yamaguchi Bank, Ltd.

200,000――

200,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedSumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited71(Note2)
Un-guaranteed

800,000

Mizuho Bank, Ltd.

Un-secured
payment
at maturity

0.56600

August 31, 2026

0.68500

February 29, 2028

0.69500

February 29, 2028

Category

LenderAmount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodAverageinterest
rate(%)(Note 1)

Repayment due date

0.28100

August 31, 2023

0.27100

August 31, 2023

0.42000

February 27, 2026

1,410,000―

1,410,000―

1,200,000―

1,200,000―

1,300,000―

1,300,000―

Mizuho Trust & Banking Co., Ltd.

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

Mizuho Trust & Banking Co., Ltd.

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

February 27, 2026

MUFG Bank, Ltd.

1,170,000――

1,170,000

0.46000

February 28, 2029

Development Bank of Japan Inc.

900,000――

900,000
0.44000

February 28, 2029

The Senshu Ikeda Bank, Ltd.

300,000――

300,000

MUFG Bank, Ltd.

1,200,000――

1,200,000

Mizuho Bank, Ltd.

200,000――

200,000

800,000――

800,000

1,800,000――

1,800,000

MUFG Bank, Ltd.

1,400,000――

1,400,000

Mizuho Bank, Ltd.

300,000――

300,000

1,000,000――

1,000,000

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedSumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedLong-term

Balanceat beginningof period

Sumitomo Mitsui Banking
Corporation

800,000――

800,000

1,700,000――

1,700,000

Mizuho Bank, Ltd.

1,300,000――

1,300,000

Sumitomo Mitsui Banking
Corporation

1,200,000――

1,200,000

Mizuho Trust & Banking Co., Ltd.

600,000――

600,000

Resona Bank, Limited

900,000――

900,000

72

November 30, 2023
0.27300

MUFG Bank, Ltd.

The Norinchukin Bank

Security

Un-secured
payment

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedUse ofproceeds

Lump-sumloans
payableRepayment
method(Note3)0.44100

May 29, 2026

0.59900

May 31, 2028

(Note2)
Un-guaranteed

at maturity

Category

LenderAmount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodDevelopment 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

Sumitomo Mitsui Banking
Corporation

545,000――

545,000

Mizuho Trust & Banking Co., Ltd.

500,000――

500,000

Resona Bank, Limited

500,000――

500,000

MUFG Bank, Ltd.

1,542,000――

1,542,000

Mizuho Bank, Ltd.

300,000――

300,000

500,000――

500,000

2,500,000――

2,500,000

Resona Bank, Limited

500,000――

500,000

THE BANK OF FUKUOKA, LTD.

200,000――

200,000

400,000――

400,000

990,000――

990,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedLong-term MUFG Bank, Ltd.
loans

Balanceat beginningof period

Mizuho Bank, Ltd.

Averageinterest
rate(%)(Note 1)

Repayment due date

0.50000

May 31, 2028

0.29150

August 29, 2025

0.28000

August 29, 2025

0.49500

August 31, 2028

0.47500

August 31, 2028

0.29700

February 28, 2025

0.28700

February 28, 2025

Repayment
methodUse ofproceeds

Security

Lump-sumUn-secured
payment(Note2)
Un-guaranteedpayableSumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited

1,840,000――

1,840,000

600,000――

600,000

Mizuho Trust & Banking Co., Ltd.

700,000――

700,000

Resona Bank, Limited

500,000――

500,000

The Norinchukin Bank

400,000――

400,000

Shinkin Central Bank

200,000――

200,000

The Senshu Ikeda Bank, Ltd.

200,000――

200,000

The 77 Bank, Ltd.

400,000――

400,000

The Yamaguchi Bank, Ltd.

200,000――

200,000

at maturity

0.46600

August 31, 2027

1,370,000――

1,370,000

0.45000

August 31, 2027

Development Bank of Japan Inc.

400,000――

400,000

0.36000

August 31, 2027

MUFG Bank, Ltd.

300,000――

300,000

Mizuho Bank, Ltd.

100,000――

100,000――

0.28600

May 30, 2025

800,000

800,000

1,380,000――

1,380,000

MUFG Bank, Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited73

Category

LenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodAverageinterest
rate(%)(Note 1)

Repayment due date

0.50700

November 30, 2028

MUFG Bank, Ltd.

800,000――

800,000

Mizuho Bank, Ltd.

210,000――

210,000

1,800,000――

1,800,000

300,000――

300,000

870,000――

870,000

Resona Bank, Limited

1,100,000――

1,100,000

The Norinchukin Bank

1,020,000――

1,020,000

Development Bank of Japan Inc.

370,000――

370,000

0.43500

November 30, 2028

MUFG Bank, Ltd.

200,000――

200,000

0.28400

August 29, 2025

Mizuho Bank, Ltd.

600,000――

600,000

500,000――

500,000

500,000――

500,000

500,000――

500,000

0.29400

August 29, 2025

Shinkin Central Bank

1,000,000――

1,000,000

The 77 Bank, Ltd.

500,000――

500,000

The Shizuoka Bank, Ltd.

1,000,000――

1,000,000

Long-term MUFG Bank, Ltd.
loans
Mizuho Bank, Ltd.
payableSumitomo Mitsui Banking
Corporation

300,000――

300,000

0.55850

February 28, 2029

700,000――

700,000

600,000――

600,000

Mizuho Trust & Banking Co., Ltd.

500,000――

500,000

Resona Bank, Limited

500,000――

500,000

The Norinchukin Bank

500,000――

500,000

The Senshu Ikeda Bank, Ltd.

1,000,000――

1,000,000

The Yamaguchi Bank, Ltd.

500,000――

500,000

The Hiroshima Bank, Ltd.

500,000――

500,000

1,280,000――

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

Mizuho Trust & Banking Co., Ltd.

200,000――

200,000

Resona Bank, Limited

300,000――

300,000

The Norinchukin Bank

210,000――

210,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co., Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited
THE BANK OF FUKUOKA, LTD.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedSecurity

Un-secured(Note2)
Un-guaranteed
at maturity

February 28, 2029

August 30, 2024
0.26304(Note3)0.47500

74

Use ofproceeds

Lump-sumpayment

0.56850

Mizuho Bank, Ltd.

Repayment
methodAugust 31, 2029

Category

LenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodMUFG Bank, Ltd.

1,550,000―

1,550,000―

Mizuho Bank, Ltd.

1,270,000―

1,270,000―

Sumitomo Mitsui Banking
Corporation

1,180,000―

1,180,000―

MUFG Bank, Ltd.

1,060,000――

1,060,000

Mizuho Bank, Ltd.

340,000――

340,000

760,000――

760,000

1,500,000――

1,500,000

1,400,000――

1,400,000

Development Bank of Japan Inc.

800,000――

800,000

The Norinchukin Bank

700,000――

700,000

MUFG Bank, Ltd.

2,490,000――

2,490,000

Mizuho Bank, Ltd.

790,000――

790,000

1,760,000――

1,760,000

500,000――

500,000

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

Sumitomo Mitsui Banking
Corporation
Long-term Sumitomo Mitsui Trust Bank,
Limitedloans
payable Mizuho Trust & Banking Co., Ltd.

900,000――

900,000

480,000――

480,000

Mizuho Bank, Ltd.

360,000――

360,000

390,000――

390,000

900,000――

900,000

750,000――

750,000

Resona Bank, Limited

500,000――

500,000

MUFG Bank, Ltd.

1,120,000――

1,120,000

Mizuho Bank, Ltd.

840,000――

840,000

910,000――

910,000

1,000,000――

1,000,000

Mizuho Trust & Banking Co., Ltd.

980,000――

980,000

Resona Bank, Limited

800,000――

800,000

The Norinchukin Bank

800,000――

800,000

THE BANK OF FUKUOKA, LTD.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedRepayment due date

0.25182

November 30, 2023

0.46000

May 31, 2028

0.60200

November 29, 2030

Repayment
method75

Use ofproceeds

Security

Lump-sumUn-secured
payment

MUFG Bank, Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedAverageinterest
rate(%)(Note 1)

(Note2)
Un-guaranteed

at maturity

0.52200

February 29, 2028

0.66500

February 28, 2030

Category

LenderSumitomo Mitsui Trust Bank,
LimitedAmount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiod1,100,000――

1,100,000

Mizuho Bank, Ltd.

400,000――

400,000

Mizuho Trust & Banking Co., Ltd.

300,000――

300,000

Resona Bank, Limited

300,000――

300,000

The Norinchukin Bank

400,000――

400,000

THE BANK OF FUKUOKA, LTD.

300,000――

300,000

Shinkin Central Bank

300,000――

300,000

The 77 Bank, Ltd.

300,000――

300,000

The Yamaguchi Bank, Ltd.

400,000――

400,000

The Shizuoka Bank, Ltd.

300,000――

300,000

The Hiroshima Bank, Ltd.

300,000――

300,000

Aozora Bank, Ltd.

300,000――

300,000

1,000,000――

1,000,000

The Joyo Bank, Ltd

300,000――

300,000

MUFG Bank, Ltd.

1,160,000――

1,160,000

Mizuho Bank, Ltd.

960,000――

960,000

880,000――

880,000

550,000――

550,000

Nippon Life Insurance Company

Sumitomo Mitsui Banking
Corporation
Long-term
Sumitomo Mitsui Trust Bank,
loans
LimitedpayableBalanceat beginningof period

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

May 31, 2029

Use ofproceeds

Security

July 11, 2024
0.24139

Un-secured
payment(Note2)
Un-guaranteed

350,000――

500,000――

0.55000

February 26, 2027

0.85500

February 28, 2030

1.00500

November 29, 2030

500,000――

400,000――

1,400,000

Mizuho Bank, Ltd.

1,050,000――

1,050,000

600,000――

600,000

500,000――

500,000

Mizuho Trust & Banking Co., Ltd.

300,000――

300,000

Resona Bank, Limited

450,000――

450,000

Development Bank of Japan Inc.

550,000――

550,000

The Norinchukin Bank

350,000――

350,000

MUFG Bank, Ltd.

700,000――

700,000

Mizuho Bank, Ltd.

350,000――

350,000

650,000――

650,000

350,000――

350,000

Resona Bank, Limited

300,000――

300,000

Development Bank of Japan Inc.

650,000――

650,00076

at maturity

350,000

400,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited0.66500

Repayment
methodLump-sum

1,400,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedRepayment due date

(Note3)

MUFG Bank, Ltd.

The Norinchukin Bank

Averageinterest
rate(%)(Note 1)Category

LenderAmount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiod200,000――

200,000

400,000――

400,000

200,000――

200,000

Mizuho Trust & Banking Co., Ltd.

200,000――

200,000

Resona Bank, Limited

200,000――

200,000

The Shizuoka Bank, Ltd.

200,000――

200,000

The Hiroshima Bank, Ltd.

200,000――

200,000

Aozora Bank, Ltd.

200,000――

200,000

The Joyo Bank, Ltd

200,000――

200,000

MUFG Bank, Ltd.

500,000――

500,000

Mizuho Bank, Ltd.

500,000――

500,000

The Norinchukin Bank

500,000――

500,000

Shinkin Central Bank

600,000――

600,000

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

500,000――

500,000

The Yamaguchi Bank, Ltd.

500,000――

500,000

Nippon Life Insurance Company

500,000――

500,000

500,000――

500,000

300,000――

300,000

THE BANK OF FUKUOKA, LTD.

500,000――

500,000

THE JUHACHI-SHINWA BANK,
LTD.

500,000――

500,000

MUFG Bank, Ltd.

300,000――

300,000

MUFG Bank, Ltd.

600,000――

600,000

Mizuho Bank, Ltd.

500,000――

500,000

600,000――

600,000

300,000――

300,000

Mizuho Trust & Banking Co., Ltd.

400,000――

400,000

Resona Bank, Limited

500,000――

500,000

The Shizuoka Bank, Ltd.

200,000――

200,000

Long-term The 77 Bank, Ltd.
loans

Balanceat beginningof period

payableTHE NISHI-NIPPON CITY BANK,LTD.
Sumitomo Mitsui Banking
Corporation

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
Limited77

Averageinterest
rate(%)(Note 1)

Repayment due date

0.85500

February 29, 2028

1.21000

February 28, 2031

Repayment
methodUse ofproceeds

Security

Lump-sumUn-secured
payment(Note2)
Un-guaranteed

at maturity

1.11000

February 28, 2031

1.21000

February 28, 2031

0.26304

February 26, 2027

Category

LenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodMizuho Bank, Ltd.

500,000――

500,000

Mizuho Trust & Banking Co., Ltd.

400,000――

400,000

The Norinchukin Bank

500,000――

500,000

Development Bank of Japan Inc.

1,000,000――

1,000,000

THE BANK OF FUKUOKA, LTD.

700,000――

700,000

Shinkin Central Bank

200,000――

200,000

The 77 Bank, Ltd.

200,000――

200,000

The Yamaguchi Bank, Ltd.

200,000――

200,000

The Senshu Ikeda Bank, Ltd.

200,000――

200,000

The Hiroshima Bank, Ltd.

200,000――

200,000

Aozora Bank, Ltd.

200,000――

200,000

MUFG Bank, Ltd.

payableRepayment due date

1.10500

February 28, 2030

700,000――

700,000

Nippon Life Insurance Company―

2,000,000―

2,000,000

1.04000

January 30, 2032

Nippon Life Insurance Company―

2,000,000―

2,000,000

1.12000

November 30, 2032

Mizuho Bank, Ltd.

―570,000―

570,000

Sumitomo Mitsui Trust Bank,
Limited―1,240,000―

1,240,000

Mizuho Trust & Banking Co., Ltd.

―

470,000―

470,000
0.87500

May 31, 2030

Resona Bank, Limited―

1,150,000―

1,150,000

Long-termloans

Averageinterest
rate(%)(Note 1)

Un-secured―

850,000―

850,000―

550,000―

550,000

Sumitomo Mitsui Banking
Corporation―

200,000―

200,000

0.82500

May 31, 2030

MUFG Bank, Ltd.

―

670,000―

670,000

0.87500

May 31, 2030

Sumitomo Mitsui Banking
Corporation―

1,200,000―

1,200,000

Mizuho Bank, Ltd.

―

1,410,000―

1,410,000

Sumitomo Mitsui Trust Bank,
Limited―1,300,000―

1,300,000
0.24594

August 31, 2027

Mizuho Trust & Banking Co., Ltd.

―

600,000―

600,000

Resona Bank, Limited―

700,000―

700,000

Shinkin Central Bank―

200,000―

200,000

Mizuho Bank, Ltd.

―

550,000―

550,000

Mizuho Trust & Banking Co., Ltd.

―

1,000,000―

1,000,000

1.03500

August 30, 2030

Development Bank of Japan Inc.

―

2,100,000―

2,100,000

Sumitomo Mitsui Banking
Corporation―

450,000―

450,000

0.98500

August 30, 2030

THE BANK OF FUKUOKA, LTD.

―

400,000―

400,000

Shinkin Central Bank―

300,000―

300,000

1.12000

August 29, 2031―

300,000―

300,000

226,742,000

24,210,000

25,210,000

225,742,000

78

Security(Note2)
Un-guaranteed

Development Bank of Japan Inc.

Total

Use ofproceeds

Lump-sumpayment

The Norinchukin BankThe Yamaguchi Bank, Ltd.

Repayment
methodat maturity

(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 the 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.
(Thousand yen)
Long-term loans
payableDue in 1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

31,545,000

34,213,000

25,780,000

30,197,000

29,027,000

79

80

81

82