Financial Results
Briefing materials
Financial Period Ended January 2024
(18th Fiscal Period)
March 19, 2024

Asset Management Company
Securities Code︓3455
The translation of the original Japanese Financial Results Briefing materials is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

0IndexExecutive Summary
1. 18th Fiscal Period Highlights

P2

2. Acquisition of assets in 19th Fiscal Period

P3

Ⅰ

1. Major Indexes for 18th Fiscal Period

P6

2. Actual Results for 18th Fiscal Period

P7

Factors for Increase/Decrease in Distributionsfor 18th Fiscal Period
Earnings Forecasts for4.
19th Fiscal Period and 20th Fiscal Period
Factors for Increase/Decrease in Distributions
5.
Forecast for 19th and 20th Fiscal Period
6. Changes in DPU/NAV Per Unit

Ⅲ

P8

2.

Ⅴ

P9
P10
P11

Ⅵ

Status of Asset Management
1. Portfolio Highlights

P13

2. Continuing Appraisal

P14

3. Changes in Unrealized Gain

P15

4. Stable Cash Flow in the Long Term

P16

Actions for External Growth
1. Road Map to External Growth

Financial Summary

3.

Ⅱ

Ⅳ

Ⅶ

Summary of assets acquired in 19th Fiscal
PeriodP22
P23

3. External Growth Strategy

P26

4. Actions for Acquisition of Hospital Property

P28

ESG Initiatives
1. Materiality

P30

2. Topics

P31

Environment Surrounding Healthcare Industry
1. Supply and Demand of Healthcare Facilities

P33

2. Regional Comprehensive Care System

P34

3. Regional Healthcare Vision

P35

4. Facilities and Housing for the Elderly

P36

Appendix

Financial Strategy
1. Financial Status

P19

1

Executive Summary

1. 18th Fiscal Period Highlights
Performance

Operating revenue:2,438 million yen (△0 million yen from forecast, △0 million yen from previous fiscal period)

Net income:1,049 million yen (△0 million yen from forecast, △18 million yen from previous fiscal period)DPU:3,235 yen (±0 yen (±0%) from forecast, △47 yen (△1.4%) from previous fiscal period)NAV per unit

:135,954 yen（+3,042 yen (+2.3%) from previous fiscal period ）Financial Status
Interest-bearing liabilities is 39.15 billion yen (±0 million yen from previous fiscal period) and LTV is 48.5% (±0 pt
from previous fiscal period).



Refinanced long-term loans (7.25 billion yen)
Continued the existing basic policy of long term, fixed interest rate and diversification of repayment due dates.

Long-term issuer ratings (JCR) is A+ (Stable).

Portfolio

Asset size is 48 properties/79.2 billion yen, No new assets acquired/disposed.
(Acquired 5 properties for 2.39 billion yen on February 1, 2024 (19th fiscal period))

As of the end of 18th fiscal period, the unrealized gains increased to 11.5 billion yen, and the unrealized gains
ratio expanded to 14.7% with the rise of appraisal value.

The operational rate maintained 100%. No lease termination, rent reduction/exemption, deferral of rent payment.
2

Executive Summary

2. Acquisition of assets in 19th Fiscal Period
Acquired 5 new properties from the existing pipeline for 2.39 billion yen
NOAH GARDEN
Building A

SellerNOAH GARDEN
Building B

NOAH GARDEN
Villa

NOAH GARDEN
Bloom View

Godo Kaisha NOAH GARDEN Hachiken

Type

TOSEI-R, Inc.
Serviced housing forthe elderly

Residential type paid nursing home

PD House
Higashi-Osaka

Residential type paid
nursing home

Operator

NOAH KONZER Co.,Ltd

SUNWELS Co., Ltd.

Location

Sapporo-shi, Hokkaido

Higashiosaka-shi,
Osaka

Total / Average

Acquisition Price(million yen)

384

280

300

736

693

2,393

Appraisal value(million yen)

400

292

314

768

738

2,512

Appraisal
NOI yield

6.3％

5.6％

5.3％

5.1％

5.3％

5.5％

Building age (Note2)

28.2 years

24.4 years

12.8 years

10.2 years

1.6 years

12.5 years

Acquisition dateFebruary 1, 2024
Acquisition from SPCs formed by sponsors, etc.

-

Acquisitions from non-sponsors(Note1) "Appraisal Value" is based on the appraisal report as of November 30, 2024.
(Note2) “Building age" is calculated as a weighted average of the acquisition price, with February 1, 2024 as the base date, and rounded down to the first decimal place. In the case of multiple buildings, it is calculated as a weighted average of the area.

3

memo

4

Financial Summary

5

Ⅰ Financial Summary

1. Major Indexes for 18th Fiscal Period
Figures in parentheses indicate the change
from the end of previous period

Asset (Assets)

Debt (Liabilities)

Number of properties

48 propertiesc(±0 properties)

Total acquisition price79.2 billion yen)(±0 billion yen)

Total appraisal value

Unrealized gain

Average appraisal NOI
yield

Portfolio operational rate

Ratio of fixed rents

89.5 billion yen)(+0.7 billion yen)
11.5 billion yen)

Total amount ofinterest-bearing liabilities
Average remaining terms
to maturity
Average borrowinginterest rate
Ratio of long-term debt

39.15 billion yen)(±0 billion yen)
3.1 years)(+0.3 years)
0.78%)(+0.08pt)
80.7%)(+4.3pt)

Ratio of debt with

94.9%)

fixed interest rates(±0pt)

5.5%)

LTV (Net asset base

48.5%/42.5%)(±0pt)/Market value base)(±0pt/△0.5pt)

100.0%)

Long-Term Issuer Rating(JCR)(+1.1 billion yen)（±0pt)
100.0%)

Equity (Net assets)
Market cap(±0pt)

Ratio of investment inthree major
metropolitan areas

82.9%_

Average remaining leaseterm

11.5 years)(±0pt)(△0.5 years)

A+ (Stable)

DPU
Distribution in excess ofearnings (Note)(Equivalent to return of capital)

NAV per unit

(Note) Distribution in excess of earnings refers to distribution carried out targeting around 20% of depreciation equivalent (return of capital).

47.3 billion yen)(△7.7 billion yen)
3,235 yen)(△47 yen)
316 yen)(+5 yen)
135,954 yen)(+3,042 yen)

6

Ⅰ Financial Summary

2. Actual Results for 18th Fiscal Period
Operating revenue remained flat. Although operating expenses increased, both net income anddistribution per unit were in line with forecasts.
(Unit: million yen)
17th fiscal
period18th Fiscal Period Actual Results(Comparison with 17th Fiscal Period)

18th Fiscal Period(Ended January 2024)(Ended July 2023)

ActualForecast(Note 2)

Actual

(A)

(B)

(C)

Operating revenue

2,438

2,438

Operating expenses

1,170

Expenses related to leasing
business

Comparison with 17th Fiscal Period

Comparison with
Forecast(Unit: million yen)

Difference in operating expenses (+14)(C)-(A)(C)-(A)（A）(％)

2,438

△0

△0.0％

△0

1,183

1,184

+14

+1.2%

+0

820

829

832

+11

+1.4%

+2

Difference in Non-operating income (△2)(Depreciation)

560

566

566

+6

+1.1%

+0

 Decrease in insurance income (△2)

General and administrative
expenses

349

353

352

+2

+0.7%

△1

Difference in Non-operating expenses (+1)

1,268

1,255

1,254

△14

△1.1%

△1

Non-operating income

2

－

0

△2

△83.3%+0

Non-operating expenses

202

204

204

+1

+1.0%

+0

Ordinary income

1,068

1,051

1,050

△18

△1.7%

△0

Net income

1,068

1,050

1,049

△18

△1.7%

△0

DPU (yen)

3,282

3,235

3,235

△47

△1.4%

±0

△52

△1.8%

△1

+5

+1.6%

+1

Operating income

Distribution of earnings

2,828

Distribution of allowance fortemporary difference
adjustments

143

Distribution in excess of earnings(return of capital) (Note 1)

311

2,920
315

2,919
0
316

(C)-(B) Increase in expenses related to leasing business (+11)
 Depreciation (+6)
 Loss on disposal of fixed assets (+4)
 Increase in general and administrative expenses (+2)
 Survey fee (+2)
 Asset management fee (+1)

 Increase in interest expenses (+2)

18th Fiscal Period Actual Results(Comparison with Forecast)(Unit: million yen)

Difference in operating expenses (+0)
 Increase in expenses related to leasing business (+2)
 Loss on disposal of fixed assets (+4)
 Repair expenses (△2)
 Decrease in general and administrative expenses (△ 1) Consumption tax(+1)
 Professional fees (△1)(Note 1) Distribution in excess of earnings refers to distribution carried out targeting around 20% of depreciation equivalent (return of capital).
(Note 2) The forecast for the 18th Fiscal Period (B) is the forecast figure announced in “(REIT) Financial Report for Fiscal Period Ended July 2023” dated September 15, 2023.

7

Ⅰ Financial Summary

3. Factors for Increase/Decrease in Distributions for 18th Fiscal Period

Factors for Increase/Decrease in Distributions for 18th Fiscal Period（Comparison with 17th Fiscal Period）
Expenses related
to leasing
business, etc.

（yen）

Non-operating
incomeNon-operating
expenses

Distribution
in excess ofearnings

△6

△5

+5

△39
3,282
(Including
distribution
in excess ofearnings)

Increase in depreciation(△16)
Loss on disposal of fixed
assets(△13)
Increase in survey fee(△ 6 )

Decrease in insuranceincome(△ 6)

Increase in interest
expenses
(△ 6)

3,235
(Including
distribution
in excess ofearnings)

17th Fiscal Period

18th Fiscal Period

Actual Results

Actual Results

Factors for Increase/Decrease in Distributions for 18th Fiscal Period（Comparison with Forecast）
Expenses related
to leasing
business

（yen）

△13
3,235
(Including
distribution
in excess ofearnings)

Loss on disposal of fixed
assets(△13)

Expenses related
to leasing
business+7
Decrease in repair
expenses(+ 7)

General andadministrative
expenses

Distribution
in excess ofearnings+4+1

Increase in consumption tax (△ 3)
Decrease in professional fees (+ 5)3,235(Including
distribution
in excess ofearnings)

18th Fiscal Period

18th Fiscal Period

Forecast

Actual Results（Note） Listed only major difference factors.

8

Ⅰ Financial Summary

4. Earnings Forecasts for 19th Fiscal Period and 20th Fiscal Period

In the 19th fiscal period, top-line revenue will increase due to asset acquisitions. Depreciation andinterest expenses are expected to increase in line with the external growth, but net income anddistribution per unit are expected to remain flat.
(Unit: million yen)

18th Fiscal
Period(ending January 2025)(ending July 2024)(ending January
2024)
Initial forecast

Actual20th Fiscal Period

19th Fiscal Period(Note 2)

Forecast(Note 3)19th Fiscal Period Forecast (Comparison
with 18th Fiscal Period Results)(Unit: million yen)Comparison with
18th fiscal period

Forecast(C)-(A)(D)(Note 3)Comparison with
19th fiscal period
forecast(D)-(C)

Difference in operating revenue (+75)
 Rent revenue from properties acquired in 19th fiscal
period (+75)

(A)

(B)

(C)

Operating revenue

2,438

2,438

2,514

+75

2,514

±0

Operating expenses

1,184

1,184

1,223

+39

1,240

+17

Expenses related to leasing
business

832

832

867

+35

869

+2

(Depreciation)

566

568

589

+23

596

+6

General and administrative
expenses

352

351

355

+3

370

+15

Difference in Non-operating expenses (+40)

Operating income

1,254

1,253

1,290

+36

1,273

△17

Non-operating income

0

－

－

△0

－

±0

 Increase in interest expenses (+34)
 Increase in financing fees (+5)

Non-operating expenses

204

216

244

+40

249

+5

Ordinary income

1,050

1,037

1,046

△4

1,023

△22

Net income

1,049

1,036

1,045

△4

1,022

△22

DPU (yen)

3,235

3,200

3,235

±0

3,175

△60

2,919

2,884

2,907

△12

2,844

△63

316

316

328

+12

331

+3

DPU

(Excluding distribution in excess ofearnings (return of capital)(Note1))

Distribution in excess of earnings(return of capital) (Note 1)

Difference in operating expenses (+39)
 Increase in expenses related to leasing business (+35)
 Depreciation (+23)
 Repair expenses (+14)
 Loss on disposal of fixed assets (△4)
 Increase in general and administrative expenses (+3)
 Consumption tax (+1)
 Professional fees (+1)
 Asset management fee (△1)

20th Fiscal Period Forecast (Comparison
with 19th Fiscal Period Forecast)(Unit: million yen)

Difference in operating expenses (+17)

 Increase in expenses related to leasing business (+2)
 Depreciation (+6)
 Repair expenses (△4)
 Increase in general and administrative expenses (+15)
 Asset management fee (+7)
 Expenses related to investors meeting (+7)

Difference in Non-operating expenses (+5)
Increase in interest expenses (+5)(Note 1) Distribution in excess of earnings refers to distribution carried out targeting around 20% of depreciation equivalent (return of capital).
(Note 2) The initial forecast for the 19th Fiscal Period (B) is the forecast figure announced in “(REIT) Financial Report for Fiscal Period Ended July 2023” dated September 15, 2023.
(Note 3) The forecast for the 19th Fiscal Period (C) and The forecast for the 20th Fiscal Period (D) are the forecast figure announced in “ (REIT) Financial Report for Fiscal Period Ended January 2024” dated March 19, 2024.

9

Ⅰ Financial Summary

5. Factors for Increase/Decrease in Distributions Forecast
for 19th and 20th Fiscal Period

Factors for Increase/Decrease in Distributions Forecast
for 20th（Comparison with 19th Fiscal Period Forecast）

Factors for Increase/Decrease in Distributions Forecast
for 19th（Comparison with 18th Fiscal Period Results）（yen）

Operatingrevenue

Expensesrelated toleasingbusiness, etc.
△108

Non-operating
expenses

+210
△112

Expensesrelated toleasingbusiness

Distribution
in excessof earnings△6+12
Increase in interest
expenses(△95)
Increase in financing
fees
(△16)
Increase in depreciation(△65)
Increase in repair expenses (△39)
Increase in administrative service
fees
(△ 4)

3,235
(Including
distribution
in excess ofearnings)

General andadministrative
expenses

Distribution
Non-operating in excess
expensesof earnings

△42

△14

+3

Increase in interest
expenses
(△14)
3,235
(Including
distribution
in excess ofearnings)

Rent revenue fromproperties acquired in 19th
fiscal period(+210)

Expenses related toinvestors meeting（△21）
Increase in asset
management fee （△19）
Increase in depreciation(△17)
Decrease in repair
expenses
(+11)

3,175
(Including
distribution
in excess ofearnings)

18th Fiscal Period

19th Fiscal Period

20th Fiscal Period

Actual Results

Forecast

Forecast（Note） Listed only major difference factors.

10

Ⅰ Financial Summary

6. Changes in DPU/NAV Per Unit
NAV per unit increased for 6 consecutive periods
Aim to increase unitholder value through increase in NAV and stable distributions over the
medium to long term
DPU／NAV Per Unit
Distribution in excess of earnings per unit (Note)(DPU:yen)

Distribution (excluding distribution in excess of earnings due to return of capital) per unit

4,000

NAV per unit

3,500
3,000

(NAV Per Unit:yen)

3,643

3,320

3,120

3,240

3,226

3,266

140,000
3,367

3,557
3,282

3,244

135,954
3,235

2,699

132,912130,000

131,033

2,500
2,000

135,000

125,000

127,069
124,814

1,500
1,000
117,445

118,038

118,…

119,303

119,842

119,268

120,000

120,907

115,000500

110,000

0
7th FP

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

16th FP

17th FP

18th FP

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

July

January

July

January

July

January

July

January

July

January

July

January

2018

2019

2019

2020

2020

2021

2021

2022

2022

2023

2023

2024

(Note) Distribution in excess of earnings refers to distribution carried out targeting around 20% of depreciation equivalent (return of capital).

11

Status of Asset Management

12

Ⅱ

Status of Asset Management

1. Portfolio Highlights
Diversification Status (expected figures on March 31,2024) (Note 4)

Key Data
18th FP(Note 2)By Type19th FP(expected figures on
March 31,2024)

Complex of paid nursing home, medical

53properties

15.8%

service-related facilities, etc.

(Note3)

Number ofproperties

48properties（±0 properties）（+5properties）

Total acquisition
price

79.2billion yen

81.6billion yen

Total appraisal
value (Note 1)

89.5billion yen

92.0billion yen

Averageappraisal NOI
yield

5.5％

5.5％

Average buildingage (Note 1)（±0 billion yen）（＋0.7 billion yen）（±0pt）

18.1years（＋0.5years）

Healthcare
facilities
100％

Serviced housing for the

Paid nursing

elderly

home

6.7%

74.9%

By Operator（Note 5）

By Area（±0pt）

18.1years（±0years）

11.8years

Ratio of fixed
rents

100.0％

100.0％

Portfolio
operational rate

100.0％（±0pt）

2.5%（+2.5billion yen）

11.5years（±0pt）

facilities, etc.

（+2.3billion yen）

Averageremaining leaseterm (Note 1)（△0.5years）

Medical service-related

Other
areas
Core cities
16.5%

OthersTokyo（+0.3years）（±0pt）

Kinki area

100.0％

37.4%（±0pt）

GREEN LIFE Co., Ltd. and

2.1%

35.0%

GREEN LIFE HIGASHINIHON Co., Ltd.
23.2%

Number ofThree Major
Operators
Metropolitan Metropolitan
17
operators Sompo Care Inc.
areas
area
NOAH KONZER
81.4%
44.0%
Co., Ltd

16.4%

7.5%
Benesse Style Care
Co., Ltd.
8.6%

Kyowakai Medical
Corporation
9.3%(Note 1) "Total Appraisal Value" is indicated based on the appraisal report with January 31, 2024 (November 30, 2023 for the asset acquired on February 1, 2024) as the appraisal date. "Average building age" and "Average remaining
lease term" are calculated as a weighted average of the acquisition price with January 31, 2024 or March 31, 2024 as the base dates. The figures are rounded down to the first decimal place. For properties having multiple
buildings, they indicate weighted-average figures based on area.
(Note 2) Figures in parentheses are comparison with the end of the 17th FP.
(Note 3) Figures in parentheses are comparison with the end of the 18th FP.
(Note 4) The figures in the graphs are calculated based on acquisition price, rounded off to the first decimal place.
(Note 5) The operators of SHIP Senri Building are separated based on an area basis, with Kyowakai Medical Corporation for the Senri-Chuo Hospital portion and GREEN LIFE for the other portions.

13

Ⅱ

Status of Asset Management

2. Continuing Appraisal
Summary of Continuing Appraisal
17th Fiscal
Period18th Fiscal
PeriodPoP change

Number of
Properties

48 properties

48 properties±0 properties

Appraisal Value

88,769 million
yen89,543 million
yen+774 million
yen

10,344 million
yen

Unrealized gains

11,501 million
yen(million yen)

(Number of properties)

Appraisal Value（million yen）

95,00060

Number of Properties
90,00047+1,157 million
yen

48

48

48

85,00040
35Appraisal Value

36

36

37

37

80,000Changes per property

30

Capitalization Rate（Note）

17th
FiscalPeriod18th
FiscalPeriodIncrease

16

15

Decrease

15

16

Same

28

21

Same

33

32

Decrease

412

Increase00(Note) Direct capitalization method cap rate is shown.

86,364（ Number of Properties） 75,000（ Number of Properties）

17th
FiscalPeriod18th
FiscalPeriod70,00070,41365,0000

50

71,862 71,518

72,531

88,206 88,769

89,54320

1073,4850
10th FP 11th FP 12th FP 13th FP 14th FP 15th FP 16th FP 17th FP 18th FP

14

Ⅱ

Status of Asset Management

3. Changes in Unrealized Gains
Unrealized gains have been increasing steadily, with the rise of appraisal value(million
yen)
（百万円）

(%)

14,00014.7

15.0

Unrealized gains (left axis)
13.2

Unrealized gains ratio (right axis)

12,00013.0
12.0

10,000

10.5

8,000

6,000

4,000

11.0

10.3

11,501

8.5
7.5

7.7

9,417

7.7

10,344

9.0

8,091
6,959

2,000

0

5,653

7.0

4,901

5,165

5,094

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

16th FP

17th FP

18th FP

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

January

July

January

July

January

July

January

July

January

2020

2020

2021

2021

2022

2022

2023

2023

2024

5.0

15

Ⅱ

Status of Asset Management

4. Stable Cash Flow in the Long Term①
By leveraging expertise in the healthcare field, HCM stably owns healthcare facilities
operated by carefully selected operators.
Business Evaluation of Healthcare Facilities and Operators
HCM has built a stable portfolio through businessdue diligence and monitoring.
Operators

Operations
capability

Management
stability

Carefully Selected Operators

17 operators with strong track records and high creditworthiness,
including industry-leading SOMPO Care, Benesse Style Care and
GREEN LIFE that belongs to SHIP HEALTHCARE.
Kyowakai is a major medical corporation that operates 6 hospitals(2,108 beds) and 4 geriatric health services facilities (495 beds), etc.
Top Operators (Based on Acquisition Price) (Note 1)
Total capacity (Note 2)

Share (%)

4,762 people(ranked 25th in Japan) (Note 4)

23.2

29,454 people(ranked 1st in Japan)

16.4

Kyowakai Medical Corporation-

9.3

Benesse Style Care Co., Ltd.

20,318 people(ranked 2nd in Japan)

8.6

Operator
GREEN LIFE Co., Ltd.
GREEN LIFE HIGASHI NIHON Co., Ltd.
Sompo Care Inc.

Business due diligence / Monitoring Quantitative and qualitative assessment and analysis
 Regular visits to facilities and on-site inspections(interviews with facility directors, etc.)
Business
profile/activities

Financial status

Organizational
management

Business model

Compliance(Abuse prevention
measures)

Staff retainment・Development(Note 1)
(Note 2)
(Note 3)(Note 4)The operators of SHIP Senri Building are separated based on an area basis, with Kyowakai Medical
Corporation for the Senri-Chuo Hospital portion and GREEN LIFE for the other portions.
(From) Weekly Senior Housing Newspaper, August 23・30, 2023 issue (No. 726)
Figures are based on March 31, 2024 forecast.
Indicates the figure of Ship Healthcare Holdings Co., Ltd. as a whole.

Stable Rent Revenue in the Long Term
 Long-term fixed-rent lease agreements have been concluded withcarefully selected operators.

 No direct impact from rising utility costs, as these costs are borne byoperators in principle.

HAM has established the Healthcare Business
Promotion Department in-house (Note)
Responsible for business evaluation of healthcare
facilities and operators, as well as survey andanalysis of the healthcare industry.

(Note 3)20 years or more
13.1%

Ratio offixed rents
100%

Averageremaininglease term
11.8 years

Less than10
years
42.9%

(Note)

10 years or more but less than
20 years(Note) The head of Healthcare Business Promotion Department is an "expert who fully understands the businesscharacteristics of healthcare facilities" defined by the Ministry of Land, Infrastructure, Transport and Tourism in
the guidelines.

44.1%(Note) The figure is based on March 31, 2024, as reference date and calculated by weighted averaging
with acquisition prices, rounded down to the first decimal place.

16

Ⅱ

Status of Asset Management

4. Stable Cash Flow in the Long Term②
Portfolio operational rate of HCM has been almost 100% since the IPO, and average occupancy
rate of each facility has been currently around 90%.
Change in Portfolio Operational Rate and Average Occupancy Rate

（％）

100

100

100

100

100

100

99.9

100

91.6

91.5

100

100

92.6

92.4

100

100

91.1

91.3

99.9

100

100

100

88.9

89.0

89.2

89.6

100

95

90

87.7

86.7
85

84.4

85.2

84.9

85.3
portfolio operational rate

average occupancy rate8075
3rd FP

4th FP

5th FP

6th FP

7th FP

8th FP

9th FP

10th FP 11th FP 12th FP 13th FP 14th FP 15th FP 16th FP 17th FP 18th FP

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

July

January

July

January

July

January

July

January

July

January

July

January

July

January

July

January

2016

2017

2017

2018

2018

2019

2019

2020

2020

2021

2021

2022

2022

2023

2023

2024

(Note) Portfolio operational rate indicates the ratio of the rented area to the leasable area of the assets as of the end of each fiscal year, and is rounded off to the first decimal place. Average occupancy rate is the rate obtained by
dividing the total number of residents by the total capacity for the facilities and housing for the elderly shown in the Property Disclosure Statement of Important Matters provided by the operator and is rounded off to the firstdecimal place.

17

Financial Strategy

18

Ⅲ Financial Strategy

1. Financial Status①
PolicyMarket Recognition

Initiatives in 18th and 19th Fiscal Periods

 Long-term interest rates have been rising due to BOJʼsmonetary policy review
 Lenders' lending attitude remains unchanged

 Executed refinancing and new loans at long-term fixedinterest rates, diversified maturities
 Existing short-term loans to be refinanced at long term
fixed interest rated
 Aozora Bank, Ltd. added as a new lender LTV maintained at around 50%

HCM Policy
 Continue to operate in consideration of financial soundness
and impact on distributions
 Currently, interest rates are fixed through interest rateswaps
 LTV remains under control, targeting around 50%
 Consider further diversification of maturities and lenders

Status of Interest-Bearing Liabilities

Change in LTV and Total Interest-Bearing Liabilities

End of
End of17th FP 18th FP
Total amount ofinterest-bearing
Liabilities(billion
yen)

391.5

391.5

19th FP

416.5（Social loans）(billion yen)

361.5

371.5

396.5

（Social bonds）(billion yen)

20.0

20.0

20.0

2.8

3.1

3.4

94.9

94.9

100.0

Average remaining terms
to maturity(years)Ratio of debt with fixedinterest rates（%）

LTV (Net assets base)

（%）

48.5

48.5

Total interest-bearing liabilities
LTV (Net assets base)
LTV (Market value base)（expected figures on
March 31, 2024)）

50.1（Note）

LTV (Market value base)

（%）

43.0

42.5

44.0（Note）

Average borrowinginterest rate

(billion
yen)

0.70

0.78

-

(Note) Figures are calculated by adding the borrowing of 2.5 billion yen on February 1, 2024 to the total assets andtotal interest-bearing liabilities at the end of the 18th fiscal period.

(billion yen)
40

38.65
33.15

30
48.1

39.15

39.15

39.15

50.1
48.1

48.2

48.5

48.5

10

48
46

20
44.5

(%)
50

33.15
48.2

41.65

44
43.8

43.7

43.2

43

44.0
42.5

0

42
40

13th FP 14th FP 15th FP 16th FP 17th FP 18th FP 19th FP(expected figures on
March 31, 2024)

19

Ⅲ

Financial Strategy

1. Financial Status②
Diversification of Lenders (expected figures on March
31, 2024)
Amount（billion yen）

Total amount

30.0%

39.65 billion
yen

3.9%
4.4%
4.4%

Lenders

16

4.5%
4.9%

15.8%

5.7%

9.6%

Rating and Framework Evaluation

Ratio（%）■Sumitomo Mitsui Banking
Corporation

11.9

30.0

■Sumitomo Mitsui Trust Bank

6.25

15.8

■Resona Bank

3.8

9.6

■Shinkin Central Bank

2.25

5.7

■77 Bank

1.95

4.9

■Nippon Life Insurance

1.8

4.5

■Bank of Fukuoka

1.75

4.4

■Nishi-Nippon City Bank

1.75

4.4

■Dai-ichi Life Insurance
Company

1.55

3.9■Hiroshima Bank

1.55

3.9

■SBI Shinsei Bank

1.35

3.4

■Gunma Bank

1.25

3.2

■San ju San Bank

0.75

1.9

■Bank of Yokohama

0.75

1.9

■Higashi-Nippon Bank

0.5

1.3

■Aozora Bank
Total

0.5

1.3

39.65

100

Issuer Rating（Outlook）

Rating Agency

Japan Credit Rating Agency,
Ltd. (JCR)
External Evaluation Agency

Long-Term Issuer RatingA+（Stable）
Social Finance Framework
Evaluation(Note 1)

Japan Credit Rating Agency,Social 1(F)Ltd. (JCR)（The highest evaluation）(Note 1) JCR Social Finance Evaluation is an evaluation performed by Japan Credit Rating Agency, Ltd. (hereinafter,“JCR”) by confirming that the use of funds are in alignment with the Social Finance components of the principles
published by the International Capital Market Association (ICMA) and consistent with the SDGs.

Diversification of Maturities (expected figures on March 31, 2024)
Long-term loans
8

Short-term loans

Refinancing loans

New loans

Investment corporation bonds(Social bonds)

Refinance (January 31, 2024)︓7.25billion yen
New loans (February 1, 2024)︓2.5billion yen
Refinance (March 29, 2024(expected))︓2billion yen

Refinanced

6

4

7.25

7.25

6.4

5.55

2.5

6.05

5.9

2

4
2

2

2

29th FP

30th FP0
18th FP

19th FP

20th FP

21st FP

22nd FP

23rd FP

24th FP

25th FP

26th FP

27th FP

28th FP

20

Actions for External Growth21

Ⅳ Actions for External Growth

1. Road Map to External Growth
Acquired 5 new properties at the beginning of 19th fiscal period, expanding asset size
to 53 properties/81.6 billion yen
Change in Asset Size and Number of Properties
March 2015

・ IPO
・ Acquired 16 properties(23.6 billion yen)

November 2017

February 2017

・ Acquired J-REITʼsfirst hospital
real estatefor 2 billion yen

・ Conducted the firstpublic offering
・ Acquired 6 properties(13.4 billion yen)

(Number ofproperties)

65

February 2019

February 2022

・Conducted the second
public offering
・ Acquired 8 properties(22.7 billion yen)including hospital realestate・ Conducted the third
public offering
・ Acquired 10 properties(11.4 billion yen)February 2024

・ Acquired 5 properties(2.3 billion yen)(billion yen)

100

Asset size

60

Number of properties
78.4

55
50

64.8

64.8

66.3

66.3

67.0

79.2

79.2

79.2

53
47

<Target> 90

100.0(Note)

67.0

45

81.6

48

48

48

80
70
60

40
35

38.4

40.5

40.5

35

30
25
20
15
0

23.6
24

25

25

50

42.1
35

36

36

37

37
40
30

27

20

16

0
10
1st FP

5th FP 6th FP 7th FP 8th FP 9th FP 10th FP 11th FP 12th FP 13th FP 14th FP 15th FP 16th FP 17th FP 18th FP Expected

Ended

Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended Ended figures on

July

July January July January July January July January July January July January July January March 31,

2015

2017

2018

2018

2019

2019

2020

(Note) The target may not be achieved due to future events, market environment and other factors.

2020

2021

2021

2022

2022

2023

2023

2024

2024

22

Ⅳ

Actions for External Growth

2. Summary of assets acquired in 19th Fiscal Period①
Acquired facilities operated by NOAH KONZER Co.,Ltd, a dominant operator in Sapporo
NOAH GARDEN Building A

Paid nursing homes
SASSONEXPWY

NOAH GARDEN Building B

Paid nursing homes
SASSONEXPWY

NOAH GARDEN
Building A

HachikenStationNOAH GARDEN
Building B

HachikenStation

HOKKAIDO
UNIVERSITYHOKKAIDO
UNIVERSITY

Sapporo Station

Sapporo Station

 A residential type paid nursing home opened in October 2010. On the same site, the A residential type paid nursing home opened in October 2010. On the same site, the Located in a quiet residential area of Hachiken, Nishi-ku, Sapporo-shi, it features 24-

 Located in a quiet residential area of Hachiken, Nishi-ku, Sapporo-shi, it features 24-company operates four residential facilities for the elderly with a total of 161 rooms,
a home-visit care nursing office for regular round-the-clock and as-needed services,a home-visit nursing station, and day care services all in one facility.

hour nursing care service, reasonable rates, and a large public bath with natural hot
spring.

company operates four residential facilities for the elderly with a total of 161 rooms,
a home-visit care nursing office for regular round-the-clock and as-needed services,a home-visit nursing station, and day care services all in one facility.

hour nursing care service, reasonable rates, and a large public bath with natural hot
spring.

Acquisition dateFebruary 1, 2024

Acquisition dateFebruary 1, 2024

Acquisition price

384 million yen

Acquisition price

280 million yen

Appraisal value

400 million yen

Appraisal value

292 million yen

Appraisal NOI yield

6.3%

Appraisal NOI yield

5.6%

Location

4-5-20, Kyujonishi, Hachiken, Nishi-ku,
Sapporo-shi, Hokkaido

Location

4-5-15, Kyujonishi, Hachiken, Nishi-ku,
Sapporo-shi, Hokkaido

Leasable area/Site area

1,578.76㎡/5,136.99㎡

Leasable area/Site area

1,049.05㎡/5,136.99㎡

Structure/number offloorsRC, 4F

Structure/number offloorsRC, 3F

Number ofrooms/resident capacity

42 rooms, 42 people

Number ofrooms/resident capacity

37 rooms, 40 people

Construction completion

November 1995

Construction completion

September 1999

occupancy rate

71.4％

occupancy rate

85.0%

Operator

NOAH KONZER Co.,Ltd

Operator

NOAH KONZER Co.,Ltd(Note)(Note)（Note）NOAH GARDEN Building A, NOAH GARDEN Building B, NOAH GARDEN Villa and NOAH GARDEN Bloom View are all located on the same site, indicated the total site area.

23

Ⅳ

Actions for External Growth

2. Summary of assets acquired in 19th Fiscal Period②

NOAH GARDEN Villa

Paid nursing homes
SASSONEXPWY

NOAH GARDEN Bloom View

Serviced housing for the elderly
SASSONEXPWY

NOAH GARDEN
Villa

HachikenStationNOAH GARDEN
Bloom View

HachikenStation

HOKKAIDO
UNIVERSITYHOKKAIDO
UNIVERSITY

Sapporo Station

Sapporo Station

 A residential type paid nursing home opened in May 2011. On the same site, the A serviced housing for the elderly opened in December 2013. On the same site, the Located in a quiet residential area of Hachiken, Nishi-ku, Sapporo-shi, it features 24-

 Located in a quiet residential area of Hachiken, Nishi-ku, Sapporo-shi, it features 24-company operates four residential facilities for the elderly with a total of 161 rooms,
a home-visit care nursing office for regular round-the-clock and as-needed services,a home-visit nursing station, and day care services all in one facility.
hour nursing care service, reasonable rates, and a large public bath with natural hot
spring.

company operates four residential facilities for the elderly with a total of 161 rooms,
a home-visit care nursing office for regular round-the-clock and as-needed services,a home-visit nursing station, and day care services all in one facility.
hour nursing care service, reasonable rates, and a large public bath with natural hot
spring.

Acquisition dateFebruary 1, 2024

Acquisition dateFebruary 1, 2024

Acquisition price

300 million yen

Acquisition price

736 million yen

Appraisal value

314 million yen

Appraisal value

768 million yen

Appraisal NOI yield

5.3%

Appraisal NOI yield

5.1%

Location

4-5-30, Kyujonishi, Hachiken, Nishi-ku,
Sapporo-shi, Hokkaido

Location

4-5-14, Kyujonishi, Hachiken, Nishi-ku,
Sapporo-shi, Hokkaido

Leasable area/Site area

1,073.34㎡/5,136.99㎡

Leasable area/Site area

2,079.81㎡/5,136.99㎡

Structure/number offloorsRC, 3F

Structure/number offloorsRC, 4F

Number ofrooms/resident capacity

28 rooms, 28 people

Number ofrooms/resident capacity

54 rooms, 54 people

Construction completion

April 2011

Construction completion

December 2013

occupancy rate

67.9％

occupancy rate

70.4%

Operator

NOAH KONZER Co.,Ltd

Operator

NOAH KONZER Co.,Ltd(Note)(Note)（Note）NOAH GARDEN Building A, NOAH GARDEN Building B, NOAH GARDEN Villa and NOAH GARDEN Bloom View are all located on the same site, indicated the total site area.

24

Ⅳ

Actions for External Growth

2. Summary of assets acquired in 19th Fiscal Period③
First acquisition of a paid nursing home specializing in Parkinson's care operated by
SUNWELLS Co., Ltd.

PD House Higashi-Osaka

Paid nursing homes
KINKI
EXPWY

Osaka Metro
Chuo Line

TakaidaStationPD House
Higashi-Osaka

Kawachi-Eiwa
StationKawachi-Kosaka
Station

Kintetsu
Nara Line Opened in July 2022, this residential type paid nursing home has hardware andequipment specifications specifically designed for Parkinson's care, including a homenursing care office and a home nursing station, as well as a large rehabilitation room.

 Located in an area that combines a certain living environment with a mix ofdetached houses, factories, and apartment buildings, etc., a 12-minute walk from
Kawachi-Kosaka Station on the Kintetsu Nara Line.

Acquisition dateFebruary 1, 2024

Acquisition price693 million yen

Appraisal value

738 million yen

Appraisal NOI yield

5.3%

Location

1-3-42, Nishidutsumihondorinishi,
Higashiosaka-shi, Osaka

Leasable area/Site area

1,792.59㎡/1,081.03㎡

Structure/number offloorsRC, 3F

Number ofrooms/resident capacity

48 rooms, 48 people

Construction completion

June 2022

occupancy rate (Note)

97.9％

Operator

SUNWELS Co., Ltd.

(Note) Occupancy rates are based on interviews as of the end of February 2024.

SUNWELS Co., Ltd.（ New Operator ）Location15-13, Ninomiyamachi, Kanazawa-shi, Ishikawa

Founded

September 2006

Capital stock

35 million yen

Representative

Ryotatsu Nawashiro

Facilities underManagement

38 facilities, including 31 PD houses(as of December 31, 2023)
 The company operates mainly nursing care facilities such

Remarks

as PD House, a paid nursing home specializing in
Parkinsonʼs disease, as well as medical-specific residencesand group homes.

 Listed on the TSE Growth Market in June 2022. Engaging

in joint research with universities and other collaborations
with doctors and medical institutions in specialized fields.

PD House Care Provision System
3 Features
・Home visits by neurologists
・Rehabilitation program specialized for Parkinson's disease(supervised by a specialist doctor)
・24-hour home nursing
Rooms designed to prevent falls, advanced devices,and rehabilitation rooms
Home nursing(attached)Nursing post
(Medical insurance)• physicalmanagement• vital check• sputum suction• Medication
management, etc.

－ Rehabilitations

Home-visit care
(attached)

Therapists

Care worker post

• Parkinson's
disease-specificrehabilitation
program(individual andgroup)(Nursing Care
Insurance)• physical caremealtime assistanceBathing assistancePhysical conditioning,25
etc.

Ⅳ Actions for External Growth

2. External Growth Strategy①
The Status of Pipeline Accumulation

PolicySystem to gather quality
deals and information

Market Recognition
 Strong demand for healthcare real estate acquisitions
due to the entry of new investors including domestic
and foreign funds

Facilities andhousing for theelderly(in operation)

 Capitalization rates continue to decline andtransactions are overheated

Facilities andhousing for theelderly(to be developed)

Medicalservicerelated
facilities, etc.

Total Pipeline over 30 billion yen (Note)
PLAISANT GRAND Syukugawa（Acquisition of TK Equity Interest（10％））

Paid nursing home
（to be developed）

HCM Policy Expand of high-quality pipeline utilizing diversified
support from sponsors and extensive network with
operators and developers, etc. and their various
functions Consider to expand investment targets and todiversify investment structures
 Improve portfolio quality over the medium to longterm through strategic asset replacement

Investment amount

98 million yen

Expected
investment date

March 21, 2024

Location

Nishinomiya-shi, Hyogo

Construction
completion

February 2024

Operator

CARE TWENTYONE CORP.

Aim of the Acquisition of the TK Equity Interests
1

Effective use of cash by investing in SPCs

2

Secure of the first refusal right for future growth3

Income opportunity as a TK investor(Note)

HCM has the first refusal rights for the acquisition of the above property, however this does not meanthat HCM has decided to acquire the property, nor does it guarantee that HCM will acquire the property
in the future.

26

Ⅳ Actions for External Growth

2. External Growth Strategy②
HCM aims to expand the pipeline through a “gathering system” that utilizes wide-ranging
networks with operators and developers, etc. and their various functions.
System to Gather Quality Deals and Information

Warehousing
functions

Property
information
Asset Management Company

Sponsor Support Companies
Sponsorsupportagreement

Sumitomo Mitsui
Finance and Leasing

Yoei

GinsenKobe Tochi
Tatemono

Support Companies

Muromachi
Building

SMBC Trust Bank Ltd. / RISA Partners, Inc.
Max-Realty Inc. / SMFL Mirai Partners Co., Ltd.

Property
information

Developers
Homebuilders

Pipeline
supportagreement

Wide-ranging networks

Operators

OwnersHealthcare
Asset Management Co., Ltd.

Property
information(Individuals, business companies, funds, etc.)

Medical corporations27

Ⅳ Actions for External Growth

3. Actions for Acquisition of Hospital Property
Investment & Management Policy

Opportunity of REIT Investment (Utilization)1
Major investment target
 Real estate of stably managed hospitals(Hospitals expected to play a definite role in the Regional
Healthcare Vision) ⇔ Different from business rehabilitation
funds
 Medical malls and health checkup centers, etc. may also
be incorporated into portfolio

2
Investment & Management complying with the “Hospital
Real Estate Guidelines”
 Allocation of experts familiar with hospital business in the
Asset Management Company
 Conclusion of a long-term fixed-rent lease agreement, inprinciple

Size of hospital real estate marketMarket size is approximately 23 trillion yen (Note), and hospital real estateaccounts for over 50% of the entire healthcare facility real estate market(approximately 51%)



Mostly self-owned by medical corporations, etc.

Major hospital needs

Rebuilding, extension, securing of relocation site with the intention ofstrengthening medical functions

Financing for floor expansion and M&A to expand their business

Strengthen financial status, Cash flow management

Concentration of management resources on the main business, Outsourcing ofreal estate businessImproving the brand of operating facilities(Note) Calculated by the Asset Management Company based on the estimate value by KPMG Healthcare Japan Co.,
Ltd. as of June 2016.

Case Example

3
Investment ratio Together with facilities and housing for the elderly,
accounting for 80% or more of the portfolio
 No upper limit sets for hospital real estate alone

4
Promotion for market expansion
 Lectures on utilization of Healthcare REIT at industry groupmeetings (Congress of Japan Hospital Association, etc.)
 Participation in seminars for medical care-related operators
hosted by the Financial Services Agency and the Ministry ofLand, Infrastructure, Transport and Tourism

Name

SHIP Senri Building(Senri-Chuo Hospital)

Name

Niigata Rehabilitation
Hospital

Location

Toyonaka-shi, Osaka

Location

Niigata-shi, Niigata

Operator

Kyowakai Medical
Corporation

Operator

Number of
beds

Medical Corporation
AIKOKAI

400

Number of
beds

168

28

ESG Initiatives

29

Ⅴ ESG Initiatives

1. Materiality
Worked to contribute to the aged society and enhance unitholder value over the medium tolong term through asset management that contributes to ESG.
Issues that need to be solved
・ Reduction of water resource consumption
・ Energy conservation and reduction of CO2 emissions

Environment

・ Response to natural disasters caused by climatechange (Resilience)・ Waste management and reduction
・ Elimination of the shortage of supply of housing forthe elderly against the elderly population
・ Prevention of job separation due to nursing carethrough the promotion of supply of nursing carefacilities

Social・ Improvement of business efficiency and reduction ofwork burden for nursing care staff
・ Prevention of abuse of residents and harassment offacility staff
・ Response to the deterioration of hospitals andpromotion of earthquake resistance・ Work-life balance, health of staff, etc.

Specific Actions

Highly relevant SDGs

・ Green lease (Kobe Gakuentoshi Building)・ Renovation work for improving the efficiency of
air conditioning system using subsidies(GreenLife Moriguchi and Kobe Gakuentoshi Building)・ Use of Environmentally Friendly Materials (GreenLife
Moriguchi)・Landslide Prevention Measures (Hanakotoba Oppama)・ Introduced EGAO link, a system for enhancing efficiencyof nursing care services (ASHEIM Hikarigaoka and
ASHEIM Bunkyohakusan)
・ Operator employment support for people with disabilities(GreenLife Moriguchi, SHIP SENRI BUILDING)
・ Tenant (Operator) Satisfaction Surveys
・ Employee satisfaction survey at the Asset Management
Company, continued implementation of Premium Friday,
introduction of a corporate-type defined contribution plan,and introduction of sick leave
・ Separation of Executive Director of HCM and CEO of theAsset Management Company (resolved at the investors
meeting in October 2020)

・ Establishment of a system in which an external third
party periodically verifies the operation status of thewarehousing rules in order to appropriately manage
・ Fair transaction (Appropriate management of conflicts
transactions with interested parties.
of interest)
・ Transparency in decision making

Governance・ Management of various risks (including elimination of ・ Continue to share examples of initiatives taken by eachantisocial forces)
department and exchange opinions at the "CustomerOriented Committee” of the Asset Management Company
・ Monthly compliance workshops held at the asset
management company

30

Ⅴ ESG Initiatives

2. Topics
EnvironmentExternal Evaluation/Environmental CertificationSocial

GRESB
Participation in the GRESB from 2022
HCM received a “2 Star" rating in the
GRESB Real Estate Assessment and thehighest "A Level" rating in the GRESB
Public Disclosure in 2023.
TCFD Recommendations
In March 2023, HCM and HAM announced their support for
TCFD (Task Force on Climate-related Financial Disclosure)and participated in the TCFD Consortium, an organization ofdomestic companies that support TCFD.
Disclosure based on TCFD recommendations in January2024.

BELS（Building-housing Energy-efficiency Labeling System）
2 properties have been rated by BELS（NOAH GARDEN L Grace, NOAH GARDEN Season Bell）
CASBEE（Comprehensive Assessment System for Built
Environment Efficiency）
HCM acquired CASBEE certified properties in the 19th fiscal
period.
(PD House Higashi-Osaka)

All procured HCM financing is through social finance.
（ As of March 31, 2024 ）Social Bond
4.8%

JCR Social Finance Framework Evaluation
The highest evaluation Social １(F)A framework granted for the financing of
impact investments that produce positive social
outcomes, judged on the basis of sociality, as
well as management, administration, andtransparency.

Interestbearing
Liabilities
41.65 billion
yenSocial Loans
95.2%

GovernanceImplementation of customer-oriented business operation
 HAM has established the Customer-Oriented Committee,
which holds regular monthly meetings.
FY2023 (Note)Social Finance

Customer-Oriented Committee

10 times

Strengthening autonomous compliance frameworkIn order to foster and improve self-directed complianceawareness, HAM holds monthly compliance workshops forall executives and employees.
FY 2023 (Note)

Compliance Workshops

19 times

External Compliance Workshops

13 times（Note）FY2023 Customer-Oriented Committee, Compliance Workshops and External Compliance Workshops are
based on the number of meetings held and attended from April 2023 to January 2024.

31

Environment Surrounding
the Healthcare Industry

32

Ⅵ Environment Surrounding the Healthcare Industry

1. Supply and Demand of Healthcare Facilities
Rising Elderly Ratio and Increase in Elderly Single
Households

Upgrades and Expansion of Healthcare Facilities
June
Backedby Government Policy
2015

Outlook of Change in Japanʼs Population and Elderly Ratio
75 years old or older
64 years old or younger
Ratio of 65 years old and over

(10 thousand people)

15,00010,161

10,00010,71814.5%

10,854
5,000

10.3%

0

776 3.9%
471

1,109
717

1985

1995

5.7%

1,407
1,160
2005

32.3%

29.6%
8,673

8,788
14.5%

12.7%

9.1%

Estimate

28.0%

26.3%
9,218

2…

65-74 years old
Ratio of 75 years old and over

Actual

17.5%

40%
36.3%

March
2021

30%

7,891 19.2% 6,935 20.9%20%

1,734
1,613

1,709
1,825

1,498
2,155

1,535

1,668

2,238

2,277

2015

2020

2025

2035

2045

10%
0%

Ratio of Housing for the Elderly as a Percentage of the Elderly Population
Outcomeindicator

Source: Statistics Bureau, Ministry of Internal Affairs and Communications “2020 census“ and “Population Projection for Japan (2023 projection)” by
the National Institute of Population and Social Security Research

Ratio of Elderly Single Households in Elderly Households
その他
Other

(Thousand households)

夫婦のみ
Couple with noother members

30,000

Actual

単独
Single

単独⾼齢者割合
Ratio of single elderly

Estimate

39.0%

37.4%
20,000

24.8%
9,022

10,000
5,525
4,791

0

2010

2010年

27.3%

40%

9,365

9,090

6,756

6,606

6,510

6,848

6,763

6,693

6,666

6,420
5,928

6,717

2015

2020

2015年

2025

2020年

8,418

7,959

7,512

2030

2025年

2035

2030年

2035年

Resident Capacity

Resident Capacity

Resident Capacity（Note）

230

thousand people

thousand people

thousand people

2005

2014

2018

50%

40.0%

35.7%

29.6%

A target to raise the ratio of housing for the elderly
as a percentage of the elderly population to 4% by
2030 was set.

Housing Life Basic Plan
(nationwide plan)

6,590

30%

thousand people

20%

6,870

0.9％

10%

8,963

0%

2040

690

Resident Capacity

1,480

890

2030

４％

2.5％

2.1％

(Note) Resident capacity is estimated based on the outcome indicator for the ratio of housing for the elderly
as a percentage of the elderly population.

2040年

Source: Statistics Bureau, Ministry of Internal Affairs and Communications “2020 census“ and “Household Projection for Japan (Nationwide Projection)”(2018 projection) by the National Institute of Population and Social Security Research

Promotion of Further Supply of Healthcare Facilities

Current Status of Reconstruction of Hospitals, etc.

Although supply of facilities and housing for the elderly is on the rise each year, the supply
rate of paid nursing homes against the elderly population was a mere 1.8% in 2022, andpromotion of further supply is needed.

Supply Status of Paid Nursing Homes(people)Resident capacity

600,000
400,000
200,000

1.1%

1.0%

1.2%

1.3%

Supply rate for 65 years ole or older
1.6%
1.5%
1.4%
1.6%

1.7%

1.8%

2.0%
1.5%

315,234 350,990 391,144 424,828 482,792 518,507 552,350 576,116 609,472 634,395 666,276

0
2014

2015

2016

2017

2018

Supply Status of Serviced Housing for the Elderly

2019

2020

2021

200,000

Number of units
0.50%

0.57%

Supply rate for 65 years ole or older
0.72%
0.70%
0.67%
0.64%

0.75%

0.77%

210,859

225,374

238,289

250,352

262,021

1,747

1,569

1,466

122
729

131
719

141
704

141
674

1,344
123
664

1,344
113
633

1,153
100
619

1,070
99
586

978
110
572

5,687

5,880

6,050

6,130

6,231

6,318

6,382

6,467

6,425

2014

2015

2016

2017

2018

2019

2020

2021

2022

4,000

100,000
191,871

1,955

1.00%

0.61%

0.50%
166,279

8,000
6,000

0.42%

135,352（hospitals）

2022(units)300,000

Nuber of hospitals whose seismic resistance of buildings is unknown
Number of hospitals where all buildings are not earthquake resistant
Number of hospitals with earthquake resistance in some buildings
Number of hospitals with earthquake resistance in all buildings

0.5%
0.0%

2013

Ratio of quake-resistant paid nursing homes is 95% or more while that ofquake-resistant hospitals remains at 79.5%.
Quake-resistant statues of hospitals


1.8%

1.0%

2012

Hospitals that were constructed in the 1960ʼs and 1970ʼs and do not meetthe earthquake resistance standards still exist.

272,870

280,384

00.00%
2013 Dec. 2014 Dec. 2015 Dec. 2016 Dec. 2017 Dec. 2018 Dec. 2019 Dec.2020 Dec. 2021 Dec. 2022 Dec.

2,000
0

surveysurveysurveysurveysurveysurveysurveysurveySource: Ministry of Health, Labor and Welfare “Survey of hospital seismic repairs (2021 survey)”

survey33

Ⅵ Environment Surrounding the Healthcare Industry

2. Regional Comprehensive Care System
Regional Comprehensive Care System○ We will establish a regional comprehensive care system that provides residences, medical care, nursing care, preventative medicine and life support in an
integrated manner to offer an environment where the elderly can continue living in an area they are used to, even after they come to require nursing care,in around 2025 when the baby-boomer generation will be 75 or older.
○ Establishment of a regional comprehensive care system is necessary to support the lives in regions where elderly with dementia live as the number of
elderly with dementia is expected to increase in the future.
○ There is a large regional difference concerning the progress of aging. There are, for example, large cities with the overall population remaining flat but the
population of people aged 75 years old or older increasing rapidly and rural areas with the population of people aged 75 years old or older increasingslightly although the overall population decreasing.
It is necessary for municipalities and prefectural governments, which are the insurer, to create a regional comprehensive care system based on autonomy
and independence and in accordance with regional characteristics.

Image of Regional Comprehensive Care System
When you get sick...
Medical care••

When you need nursing care...
Nursing careAcute care hospital
Subacute and recovery phase/recovery
phase rehabilitation hospital

Hospital visit&
stay

Daily medical care:• Primary care doctor• Regional cooperative
hospital

Outpatient nursing care&admission

Residence• Regional comprehensive
support center• Care manager

 In-home service:• Long-term home-visit nursing care, home-visit nursing,outpatient day long-term nursing care
• Multifunctional long-term nursing care in a small grouphome• Short-term admission for daily life long-term nursing care
• 24-hour home-visit service• Combined service(Multifunctional long-term nursing care in a small grouphome + home-visit nursing), etc.
 Nursing care prevention service••
We coordinate consultation
business and services

Own house
Serviced housing for the elderly, etc.

 Facility and home service• Long-term care welfare facility
for the elderly• Long-term care health facility forthe elderly• Communal daily long-term
nursing care for a dementia
patient• Daily life long-term nursing carefor those admitted to a specified
facility, etc.

Patients
with dementia

To live a healthy life forever...

Life support & nursing care prevention* Regional comprehensive care systems are expected to beestablished for each area in the sphere of everyday life
(specifically junior high school districts) where necessary
services are provided within about 30 minutes

Golden age club, local government, volunteer, NPO, etc.
Source: Website of Ministry of Health, Labor and Welfare34

Ⅵ Environment Surrounding the Healthcare Industry

3. Regional Healthcare Vision“Regional Healthcare Vision” is to estimate and stipulate medical demand (number of patients) and required number of beds in 2025 for each
medical function in each area of the vision (secondary medical area) in order to promote functional differentiation and coordination of
hospital wards.
Following this, prefectural governments and medical staff will respond to realize the formulated initiative.

Current hospital bed functions(as of 2022)(Hospital Ward A)
Advanced acutestage function

Number of Beds to be Requiredin 2025

Total 1.199 million beds

Total 1.191 million beds

Advanced acute

Medical institution

stage 157,000

Distortion of
medical balance
and financial
concerns due tooveremphasis on
advanced acutestage

beds (13%)

Decrease by approx. 25%(Hospital Ward B)

Voluntarily
selectmedicalfunction

Acute stage
function(Hospital Ward C)
Recovery stage
function

Acute stage
401,000 beds
(34%)
Acute stage
533,000
beds(45%)
Recovery stage
375,000 beds
(31%)

(Hospital Ward D)
Chronic stage
function

Recovery

Increase by approx. 2 times

stage
199,000 beds

Prefectural
government

Advanced acute stage
131,000 beds
(11%)

Report current status andfuture direction of medical
functions(17%)
Decrease by approx. 10%

Chronic stage

Establish “Regional Healthcare Vision” by utilizing reports on medical
functions, etc. and promote further functional differentiation(Note) The upper chart is prepared by the Asset Management Company based on the “Community Healthcare Initiative”
of the Ministry of Health, Labour and Welfare.

308,000 beds
(26%)

Shift to nursing carefacilities, in-home medicalcare, etc.

Chronic stage
284,000 beds
(24%)

Nursing care facilities, inhome medical care, etc.
Approx.
300,000 people

35

Ⅵ Environment Surrounding the Healthcare Industry

4. Facilities and Housing for the Elderly

Characteristics

Mainfounder

Paid nursing homes with careservice

These are paid nursing homes for the elderly that fall under the prefectural governmentʼs designation of “Daily Life
Long-Term Care Admitted to a Specified Facility” for long-term insurance. Facility staff provide nursing care services
when residents need nursing care, and the nursing care fee is a fixed amount (fixed) based on the level of nursing
care required for respective residents. Facilities must be designated in order to open (restrictions apply).

For-profit
Entities

Residential type paid nursing
homes

Unlike paid nursing homes with care service, these are paid nursing homes for the elderly in which residents
themselves enter separate contracts with external operators to receive nursing care services in the case they neednursing care. The nursing care fee is based on the amount of nursing care services the resident used (variable).
Facilities need to notify the government in order to open.

For-profit
Entities

Serviced housing for the elderly(Sakouju)

This is rental housing for the elderly that meets registration standards for size, facilities, etc. At a minimum, it must
provide safety confirmation and living consultation services. Facilities must register in order to open.

For-profit
entities

Long-term daily care fordementia patients in communal
living situation(Group homes)

These are one type of community-based long-term care service business stipulated by the Long-Term Care
Insurance Act. Their purpose is to delay the progress of dementia of users, who are people requiring nursing careand in the state of dementia, through communal living in small groups of up to nine people per unit with assistanceand functional training.

For-profit
Entities

Facilities covered by public aid
providing long-term care to theelderly(intensive care homes for theelderly)

These are welfare facilities for the elderly for people requiring nursing care on a continual and steady basis but havedifficulty receiving it at home. With stricter admission requirements since April 2015, these facilities in principle
target elderly people requiring long-term care level 3 or higher.

Social welfare
corporations

Geriatric health services facilities

These are facilities to provide medical treatment, nursing care under medical supervision, functional training andother necessary medical services as well as everyday care with the aim of returning people requiring nursing care toa self-independent state and living at their own homes.

MedicalCorporations

Integrated facilities for medical
and long-term care

Established in April 2018, these are facilities that provide everyday medical supervision, a certain level of nursing
care and residential functions to elderly people who require long-term recuperation. End-of-life care and deathwatch
are also available.

MedicalCorporations

Type

36

Appendix

37

Ⅶ Appendix

Portfolio Map
Ratio of investment inthree major
metropolitan areas

Tokyo metropolitan area

82.9%
Strategic
investment inthree major
metropolitan
areas

39
21

7
3
9
20

8

33

15

31
14

2
10

37 38 3427 26 25

45.3%
Kinki area 37.6%
Core cities14.9%
Other areas 2.2%

23

34
35

1
22
17
34

2 19 1

16

Paid nursing
home

1
1 18

30
29

35

4142
40
36

13
12
11

5

24 44
28
32

43

Serviced housing
for the elderly
Medical servicerelated facilities,
etc.

Complex of paid
nursing homes,
medical servicerelated facilities, etc.

SOMPO CARE La vie Re
Kobeikawadani
SOMPO CARE Sompo no ie
Sayama36

Royal Kawaguchi

37

NOAH GARDEN LEGEND

38

NOAH GARDEN L Grace

39

NOAH GARDEN Season Bell40

Heartland Kawaguchi Meiseien

41

Rehabilitation Home
Granda Minamiurawa

42

Madoka Minamiurawa

43

Nichii Maison Inage

44

Hanakotoba Oppama

1

SOMPO CARE Sompo no ie S
Awajiekimae

2
3

SOMPO CARE Sompo no ie S
Kobekamisawa
NOAH GARDEN CASA RICH

1

Niigata Rehabilitation Hospital

1

SHIP Senri Building

1

AQUAMARINE
Nishinomiyahama

2

Bonsejour Chitose-funabashi

3

Bonsejour Hino

4

Bonsejour Musashi-shinjo

5

Medical Rehabilitation Home
Bonsejour Hadanoshibusawa

7

ASHEIM Hikarigaoka

8

ASHEIM Bunkyohakusan

9

SOMPO CARE La vie Re
Machidaonoji
SOMPO CARE La vie Re
Azamino10
11

SAWAYAKA Tachibanakan

12

SAWAYAKA Mekarikan

13

SAWAYAKA Tagawakan

14

GOOD TIME HOME Fudo-mae

1516Paid nursing
home

Rehabilitation Home
Bonsejour Yotsugi
Medical Home Bonsejour
Itami

17

Kobe Gakuentoshi Building

18

GreenLife Moriguchi

19

Hapine Kobe Uozaki Nibankan

20Granda Tsuruma-Yamato

21

Smiling Home Medice Adachi

22

Aikoen Ichibankan Building

23

Hanakotoba Minami

24

Hanakotoba Miura

25

SOMPO CARE La vie Re
Hama-Kawasaki

26

Hanakotoba Shin-Yokohama

27

Hanakotoba Shin-YokohamaII

28

Hanakotoba Odawara

29

Verde Minowa

30

Verde Hotaka

31

Sunny Life Kita-Shinagawa

32

Sunny Life Kamakura

33

Nichii Home Nishikokubunji

38

Ⅶ Appendix

Details of Portfolio①
Paid nursing home

4

5

1

2

3

AQUAMARINE
Nishinomiyahama

Bonsejour Chitose-funabashi

Bonsejour Hino

Bonsejour Musashi-shinjo

Medical Rehabilitation Home
Bonsejour Hadanoshibusawa

Location

4-15-2 Nishinomiyahama,Nishinomiya-shi, Hyogo

1-37-3 Funabashi,
Setagaya-ku, Tokyo

438-1 Ochikawa,
Hino-shi, Tokyo

773-2 Chitose, Takatsu-ku,
Kawasaki-shi, Kanagawa

1-6-60 Shibusawakami,
Hadano-shi, Kanagawa

Nearest station

Hanshin Nishinomiya Stationon the Hanshin Main Line

Chitose-Funabashi Stationon the Odakyu Odawara Line

Mogusaen Stationon the Keio LineMusashi-Shinjo Stationon the JR Nambu Line

Shibusawa Station
on Odakyu Odawara Line

Construction completion

May 2007

March 1988

May 1990

February 1985

July 1991

Acquisition period

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Appraisal NOI (Note 1)

117 million yen

48 million yen

43 million yen

39 million yen

47 million yen

Appraisal NOI yield (Note 1)

6.0％

5.9％

6.0％

6.8％

6.5％

Appraisal value (Note 1)

2,140 million yen

997 million yen

834 million yen

643 million yen

850 million yen

Acquisition price (ratio)

1,950 million yen (2.5%)

824 million yen (1.0%)

724 million yen (0.9%)582 million yen (0.7%)728 million yen (0.9%)

Site area

2,587.93 m²

1,020.92 m²

2,211.28 m²

1,233.49 m²

2,588.04 m²

Leasable area

5,274.54 m²

2,342.17 m²

1,984.17 m²

1,710.43 m²

3,435.79 m²

Structure/
number of floors (Note 2)

RC, 5F

RC, B1 6FRC, 3FRC, 4FRC, 5F

Number ofrooms/resident capacity

90 rooms, 100 people

42 rooms, 47 people

56 rooms, 58 people

46 rooms, 49 people

100 rooms, 101 people

occupancy rate (Note 3)

100.0%

87.2%

100.0%

83.7%

92.1%

Operator

GREEN LIFE

Benesse Style Care

Benesse Style Care

Benesse Style Care

Benesse Style Care

Remaining years of leaseagreement (Note 4)

13.3 years

2.3 years

2.3 years

2.8 years

3.3 years

39

Ⅶ Appendix

Details of Portfolio②
Paid nursing home

)

7

8

9

10

ASHEIM Hikarigaoka

ASHEIM Bunkyohakusan

SOMPO CARE La vie Re
Machidaonoji

SOMPO CARE La vie Re
AzaminoLocation

4-3-23 Yahara,
Nerima-ku, Tokyo

4-36-13 Hakusan,
Bunkyo-ku, Tokyo

Nearest station

Shakujii-Koen Stationon the Seibu Ikebukuro Line

Hakusan Stationon the Toei Subway Mita Line

Construction completion

March 2006

February 2007

Acquisition period

Fiscal period ended July 2015

Appraisal NOI (Note 1)

1612 Onojimachi,
Machida-shi, Tokyo
Keio Nagayama
OdakyuNagayama
Stationon the Keio
Stationon the Odakyu
Sagamihara
Tama LineLine

11
SAWAYAKA Tachibanakan

19-24 Ayumigaoka, Tsuzuki-ku,
173-15 Oaza Ryugeji,
Yokohama-shi, Kanagawa
Hakata-ku, Fukuoka-shi, Fukuoka
Nakagawa Stationon the Yokohama Municipal
Subway Blue Line

Sasahara Stationon the JR Kagoshima Honsen
Line

October 2007

March 2004

October 2005

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

76 million yen

74 million yen

192 million yen

156 million yen

93 million yen

Appraisal NOI yield (Note 1)

5.5％

5.2％

5.3％

5.1％

6.1％

Appraisal value (Note 1)

1,590 million yen

1,790 million yen

4,230 million yen

3,560 million yen

1,630 million yen

Acquisition price (ratio)

1,385 million yen (1.7%)

1,430 million yen (1.8%)

3,580 million yen (4.5%)

3,050 million yen (3.8%)

1,520 million yen (1.9％)

Site area

2,868.46 m²

540.29 m²

7,404.13 m²

2,748.64 m²

3,359.66 m²

Leasable area

3,628.60 m²

2,507.25 m²

7,720.17 m²

5,789.25 m²

5,652.94 m²

Structure/
number of floors (Note 2)

RC, 3FRC, 8F

RC, B1 6F

RC, B1 5F

RC, B1 6F

Number ofrooms/resident capacity

83 rooms, 89 people

50 rooms, 52 people

163 rooms, 169 people

145 rooms, 145 people

104 rooms, 104 people

occupancy rate (Note 3)

80.9%

92.3%

82.8%

93.8%

98.1%

Operator

AS PARTNERS

AS PARTNERS

Sompo Care Inc.

Sompo Care Inc.

Sawayaka Club

Remaining years of leaseagreement (Note 4)

10.1 years

3.1 years

3.7 years

3.4 years

3.9 years

40

Ⅶ Appendix

Details of Portfolio③
Paid nursing home

16

12

13

14

15

SAWAYAKA Mekarikan

SAWAYAKA Tagawakan

GOOD TIME HOME Fudo-mae

Rehabilitation Home
Bonsejour Yotsugi

Medical Home Bonsejour Itami

1-9-15 Okubo, Moji-ku,
Kitakyushu-shi, Fukuoka
Mojiko Stationon the JR Kagoshima HonsenLine393-1 Oaza Ita,
Tagawa-shi, Fukuoka
Magarikane Stationon the Heisei Chikuho Railway
Tagawa Line

5-25-13 Nishigotanda,
Shinagawa-ku, Tokyo

3-1-11 Higashiyotsugi,
Katsushika-ku, Tokyo
Yotsugi Stationon the Keisei Railway OshiageLine

1-2-25 Chuo,
Itami-shi, Hyogo
Hankyu Itami Stationon the Hankyu Railway Itami
Line

Construction completion

November 2005

January 2006

March 1992

March 1989

March 1989

Acquisition period

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2016

Fiscal period ended July 2016

Appraisal NOI (Note 1)

85 million yen

25 million yen

91 million yen

47 million yen

38 million yen

Appraisal NOI yield (Note 1)

6.2％

6.4％

5.2％

5.7％

7.5％

Appraisal value (Note 1)

1,480 million yen

405 million yen

2,100 million yen

905 million yen

557 million yen

Acquisition price (ratio)

1,380 million yen (1.7％)

390 million yen (0.5％)

1,740 million yen (2.2%)

824 million yen (1.0%)

514 million yen (0.6%)

Site area

3,758.26 m²

4,300.90 m²

1,206.60 m²

1,136.46 m²

1,976.11 m²

Leasable area

4,720.46 m²

2,366.20 m²

3,400.20 m²

1,962.89 m²

2,129.87 m²

Structure/
number of floors (Note 2)

RC, 4FRC, 3F

RC, B1 5F

RC, 5F

SRC, 11F (Exclusive portion)

Number ofrooms/resident capacity

95 rooms, 95 people

60 rooms, 60 people

61 rooms, 67 people

61 rooms, 65 people

62 rooms, 64 people

occupancy rate (Note 3)

78.9%

95.0%

85.1%

81.5%

82.8%

Operator

Sawayaka Club

Sawayaka ClubJAPAN LIFEDESIGN

Benesse Style Care

Benesse Style Care

Remaining years of leaseagreement (Note 4)

3.9 years

3.9 years

2.8 years

1.9 years

3.3 years

Location
Nearest station

Fudo-mae Stationon the Tokyu Meguro Line41

Ⅶ Appendix

Details of Portfolio④
Paid nursing home

21

17

18

19

20

Kobe Gakuentoshi Building

GreenLife Moriguchi

Hapine Kobe Uozaki Nibankan

Granda Tsuruma-Yamato

Smiling Home Medice Adachi

2-3-41 Shimotsuruma,
Yamato-shi, Kanagawa

3-35-10 Minamihanabatake,
Adachi-ku, Tokyo

Tsuruma Stationon the Odakyu Enoshima Line

Rokucho Stationon the Tsukuba Express

Location

1-1-2 Gakuennishimachi,
Nishi-ku, Kobe-shi, Hyogo

6-17-34 Satanakamachi,
8-10-7 Uozakiminamimachi,
Moriguchi-shi, Osaka
Higashinada-ku, Kobe-shi, Hyogo
Dainichi Stationon the Osaka Municipal Subway
Uozaki Station
Tanimachi Line and Osakaon the Hanshin Electric Railway
Monorail

Nearest station

Gakuentoshi Stationon the Kobe Municipal Subway
Seishin-Yamate Line

Construction completion

January 2009

September 2006

March 2010

March 1998

November 2005

Acquisition period

Fiscal period ended July 2017

Fiscal period ended July 2017

Fiscal period ended July 2017

Fiscal period ended July 2017

Fiscal period ended July 2017

Appraisal NOI (Note 1)

226 million yen

220 million yen

48 million yen

52 million yen

118 million yen

Appraisal NOI yield (Note 1)

5.2％

5.3％

5.2％

5.2％

5.2％

Appraisal value (Note 1)

4,800 million yen

4,850 million yen

1,050 million yen

1,030 million yen

2,490 million yen

Acquisition price (ratio)

4,320 million yen (5.5%)

4,150 million yen (5.2%)

930 million yen (1.2%)

1,000 million yen (1.3%)

2,253 million yen (2.8%)

Site area

2,742.81 m²

5,872.83 m²

932.94 m²

2,877.11 m²

2,069.41 m²

Leasable area

12,636.48 m²

8,356.85 m²

1,772.89 m²

3,427.08 m²

3,870.98 m²

Structure/
number of floors (Note 2)

RC, B1 9F

S RC, 9F

S, B1 4F

RC S, 5FRC, 4F

Number ofrooms/resident capacity

131 rooms, 138 people

155 rooms, 189 people

47 rooms, 47 people

73 rooms, 90 people

82 rooms, 82 people

occupancy rate (Note 3)

92.8%

100.0%

100.0%

74.4%

96.3%

Operator

GREEN LIFE

GREEN LIFE

GREEN LIFE

Benesse Style Care

GREEN LIFE HIGASHI NIHON
Co., Ltd.

Remaining years of leaseagreement (Note 4)

17.1 years

15.7 years

17.1 years

2.1 years

13.0 years

42

Ⅶ Appendix

Details of Portfolio⑤
Paid nursing home

22

23

24

25

26

Aikoen Ichibankan Building

Hanakotoba Minami

Hanakotoba Miura

SOMPO CARE La vie Re
Hama-Kawasaki

Hanakotoba Shin-Yokohama

Location

1-3239-1 Tamachi, Chuo-ku,
Niigata-shi, Niigata

2-4-38 Shinkawacho,
Minami-ku, Yokohama-shi,
Kanagawa

3-5 Suwacho,
Miura-shi, Kanagawa

23-1 Tajimacho, Kawasaki-ku,
Kawasaki-shi, Kanagawa

Nearest station

Niigata Stationon the JR Shinetsu Main Line

Yoshinocho Stationon the Yokohama Municipal
Subway Blue Line

Misakiguchi Stationon the Keikyu Kurihama Line

Odasakae Stationon the JR Nambu Line

Construction completion

February 2010

February 2010

June 2007

March 2007

March 2004

Acquisition period

Fiscal period ended July 2017

Fiscal period ended July 2019

Fiscal period ended July 2019

Appraisal NOI (Note 1)

43 million yen

55 million yen

34 million yen

89 million yen

109 million yen

Appraisal NOI yield (Note 1)

5.5％

5.1％

5.6％

5.2％

5.2％

Appraisal value (Note 1)

824 million yen

1,270 million yen

670 million yen

1,850 million yen

2,520 million yen

Acquisition price (ratio)

770 million yen (1.0%)

1,071 million yen (1.4%)

615 million yen (0.8%)

1,710 million yen (2.2%)

2,071 million yen (2.6%)

Site area

2,597.52 m²

428.76 m²

1,017.55 m²

2,832.33 m²

894.00 m²

Leasable area

4,311.20 m²

1,710.68 m²

1,959.64 m²

4,060.21 m²

5,230.23 m²

Structure/
number of floors (Note 2)

S, 5F

RC, 7FRC, 4FRC, 4F (exclusively-owned
portion)RC, 9F

Number ofrooms/resident capacity

90 rooms, 90 people

50 rooms, 50 people

53 rooms, 54 people

58 rooms, 58 people

136 rooms, 136 people

occupancy rate (Note 3)

95.6%

96.0%

98.1%

89.7%

89.7%

Operator

Medical Corporation AIKOKAI

Proud Life Inc.

Proud Life Inc.

Sompo Care Inc.

Proud Life Inc.

Remaining years of leaseagreement (Note 4)

12.5 years

8.8 years

8.8 years

3.9 years

8.8 years

Fiscal period ended January 2019 Fiscal period ended January 2019

1-11-5 Shinyokohama,
Kohoku-ku, Yokohama-shi,
Kanagawa
Shin-Yokohama Stationon the Yokohama Municipal
Subway Blue Line and the JR
Yokohama Line43

Ⅶ Appendix

Details of Portfolio⑥
Paid nursing home

Location

Nearest station

27

28

29

30

Hanakotoba
Shin-Yokohama II

Hanakotoba Odawara

Verde Minowa

Verde Hotaka

1-11-11 Shinyokohama,
Kohoku-ku, Yokohama-shi,
Kanagawa
Shin-Yokohama Stationon the Yokohama Municipal
Subway Blue Line and the JR
Yokohama Line

3-9-12 Sakawa,
Odawara-shi, Kanagawa

839-4 Aza Machiyabo, Kamishiba,
1221 Aza Maebara, Oaza
Misatomachi, Takasaki-shi,Namashina, Kawaba-mura, ToneGunma
gun, Gunma

31
Sunny Life Kita-Shinagawa

3-8-6 Kitashinagawa,Shinagawa-ku, Tokyo

Kamonomiya Stationon the JR Tokaido Line

Takasaki Stationon the JR Takasaki Line

Numata Stationon the JR Joetsu Line

Shimbamba Stationon the Keikyu Line

Construction completion

April 2007

September 2009

November 2003 (Building 1)
February 1974 (Building 2)

September 1982 (Building 1)
July 1989 (Building 2)

September 2018

Acquisition period

Fiscal period ended July 2019

Fiscal period ended July 2019

Fiscal period ended July 2019

Fiscal period ended July 2019

Fiscal period ended July 2019

Appraisal NOI (Note 1)

21 million yen

49 million yen

106 million yen

90 million yen

90 million yen

Appraisal NOI yield (Note 1)

5.8％

5.6％

6.5％

6.8％

4.9％

Appraisal value (Note 1)

382 million yen

962 million yen

1,770 million yen

1,590 million yen

2,130 million yen

Acquisition price (ratio)

375 million yen (0.5%)880 million yen (1.1%)

1,620 million yen (2.0%)

1,328 million yen (1.7%)

1,825 million yen (2.3%)

Site area

375.00 m²

1,202.12 m²

8,014.02 m2

4,375.31 m²

1,105.12 m²

Leasable area

1,837.29 m²

2,203.42 m²

11,098.17 m²

6,352.86 m²

2,135.54 m²

Structure/
number of floors (Note 2)

RC, B1 7FRC, 4F

S, 5F (Building 1)
S RC, 8F (Building 2)

S SRC, 5F (Building 1)
S, 2F (Building 2)

S, 3F

Number ofrooms/resident capacity

29 rooms, 30 people

60 rooms, 65 people

174 rooms, 206 people

121 rooms, 174 people

66 rooms, 66 people

occupancy rate (Note 3)

90.0%

98.5%

94.2%

96.0%

89.4%

Operator

Proud Life Inc.

Proud Life Inc.

Verde Corporation

Verde Corporation

Kawashima Corporation

Remaining years of leaseagreement (Note 4)

8.8 years

8.8 years

3.3 years

3.3 years

19.7 years

44

Ⅶ Appendix

Details of Portfolio⑦
Paid nursing home

32

33

34

35

36

Sunny Life Kamakura

Nichii Home Nishikokubunji

SOMPO CARE La vie Re
Kobeikawadani

SOMPO CARE Sompo no ie
SayamaRoyal Kawaguchi

Location

214-4 Aza Kichime, Kamimachiya,
Kamakura-shi, Kanagawa

2-11-22 Nishikoigakubo,
Kokubunji-shi, Tokyo

548-1 Minaminoda, Higashi-ku
Sakai-shi, Osaka

2-5-24 Aoki,
Kawaguchi-shi, Saitama

Nearest station

Shonan-Machiya Stationon the Shonan Monorail

Nishikokubunji Stationon the JR Chuo Line

Sayama Stationon the Nankai Koya Line

Kawaguchi-Motogo Stationon the Saitama Railway

Construction completion

September 2014

September 1990

August 2005

October 2008

Acquisition period

Fiscal period ended July 2020

Fiscal period ended July 2021

Fiscal period ended July 2022

Fiscal period ended July 2022

Fiscal period ended July 2022

Appraisal NOI (Note 1)

76 million yen

36 million yen

63 million yen

32 million yen

62 million yen

Appraisal NOI yield (Note 1)

5.3％

5.0％

4.9％

5.4％

4.9％

Appraisal value (Note 1)

1,650 million yen

793 million yen

1,300 million yen

646 million yen

1,360 million yen

Acquisition price (ratio)

1,418 million yen (1.8%)

720 million yen（0.9％）

1,288 million yen（1.6％）

600 million yen（0.8％）

1,260 million yen (1.6%)

Site area

2,055.67 m2

1,948.41 ㎡

3,606.00 ㎡

2,264.75 ㎡

2,294.91㎡

Leasable area

3,817.91 m2

1,559.99 ㎡

3,824.54 ㎡

1,997.87 ㎡

3,484.02㎡

Structure/
number of floors (Note 2)

S, 5F

S, 3F

RC・S, 4F

S, 3F

RC, 3F

Number ofrooms/resident capacity

128 rooms, 128 people

46 rooms, 46 people

80 rooms, 80 people

50 rooms, 50 people

56 rooms, 56 people

occupancy rate (Note 3)

98.4%

95.7%

87.5%

100.0%

94.6%

Operator

Kawashima Corporation

Nichii Carepalace

Sompo Care Inc.

Sompo Care Inc.

SENIOR LIFE SUPPORT

Remaining years of leaseagreement (Note 4)

15.7 years

4.1 years

12.1 years

1.6 years

25.6 years

1745-1 Aza Ozaki, Arise,
Ikawadanicho, Nishi-ku, kobe-shi,
Hyogo
Ikawadani Stationon the Kobe Municipal Subway
Seishin-Yamate Line
April 2009(New construction)
December 2015(Expansion)

45

Ⅶ Appendix

Details of Portfolio⑧
Paid nursing home

37

38

39

40

41

NOAH GARDEN LEGENDNOAH GARDEN L Grace

NOAH GARDEN Season BellHeartland Kawaguchi Meiseien

Rehabilitation Home Granda
Minamiurawa

3-10-17 Kamiaoki,
Kawaguchi-shi, Saitama

63-2 Aza Nishinotsuma, Oaza
Koyaba, Kawaguchi-shi, Saitama

Hatogaya Stationon the Saitama Railway

Minami-Urawa Stationon the JR Keihin-Tohoku Line

Nearest station

Kaminopporo Stationon the JR Chitose Line

Kaminopporo Stationon the JR Chitose Line

5-3-1 1-Jo, Fukuzumi,
Toyohira-ku, Sapporo-shi,
Hokkaido
Fukuzumi Stationon the Sapporo City Subway

Construction completion

October 2015

October 2017

December 2019

January 2006

July 2011

Acquisition period

Fiscal period ended July 2022

Fiscal period ended July 2022

Fiscal period ended July 2022

Fiscal period ended July 2022

Fiscal period ended July 2022

Appraisal NOI (Note 1)

48 million yen

35 million yen

78 million yen

100 million yen

49 million yen

Appraisal NOI yield (Note 1)

5.6％

5.6％

5.8％

5.0％

4.8%

Appraisal value (Note 1)

930 million yen

670 million yen

1,550 million yen

2,280 million yen

1,110 million yen

Acquisition price (ratio)

859 million yen (1.1%)

622 million yen (0.8%)1,350 million yen (1.7%)

2,000 million yen (2.5%)

1,022 million yen（1.3％）

Site area

9,012.28㎡

9,012.28㎡

3,636.38㎡

1,996.66㎡

2,620.05㎡

Leasable area

2,736.89㎡

2,075.25㎡

4,602.26㎡

3,885.90㎡

2,373.25㎡

Structure/
number of floors (Note 2)

RC, 4FRC, 4FRC, 5FRC, 6F

S, 3F

Number ofrooms/resident capacity

70 rooms, 70 people

51 rooms, 51 people

136 rooms, 136 people

97 rooms, 100 people

58 rooms, 60 people

occupancy rate (Note 3)

65.7%

74.5%

74.3%

83.0%

96.7%

Operator

NOAH KONZERNOAH KONZERNOAH KONZERMEISHO

Benesse Style Care

Remaining years of leaseagreement (Note 4)

26.1 years

26.1 years

28.1 years

7.6 years

17.4 years

Location

10-4-3 2-Jo, Utsukushigaoka,
10-4-1 2-Jo, Utsukushigaoka,
Kiyota-ku, Sapporo-shi, Hokkaido Kiyota-ku, Sapporo-shi, Hokkaido

46

Ⅶ Appendix

Details of Portfolio⑨
Paid nursing home

42

43

44

Madoka Minamiurawa

Nichii Maison Inage

Hanakotoba Oppama

Location

58 Aza Nishinotsuma, Oaza Koyaba,
Kawaguchi-shi, Saitama

2153-2 Miyanogicho, Inage-ku,
Chiba-shi, Chiba

1-1-11 Oppamacho, Yokosuka-shi,
Kanagawa

Nearest station

Minami-Urawa Stationon the JR Keihin-Tohoku Line

Inage Stationon the JR Sobu Line

Keikyu-Taura stationon the Keikyu Line

Construction completion

April 2005

February 2008

July 2011

Acquisition period

Fiscal period ended July 2022

Fiscal period ended January 2023

Fiscal period ended January 2023

Appraisal NOI (Note 1)

39 million yen

83 million yen

25 million yen

Appraisal NOI yield (Note 1)

4.8%

5.5%

5.1%

Appraisal value (Note 1)

883 million yen

1,670 million yen

512 million yen

Acquisition price (ratio)

822 million yen（1.0％）1508 million yen（1.9％）

500 million yen（0.6％）

Site area

2,620.05㎡

2,444.12㎡

1,499.82㎡

Leasable area

1,918.98㎡

4,700.07㎡

1,899.46㎡

Structure/
number of floors (Note 2)

S, 3F

RC, 4F

S, 5F

Number ofrooms/resident capacity

54 rooms, 54 people

85 rooms, 95 people

59 rooms, 59 people

occupancy rate (Note 3)

85.2%

61.1%

93.2%

Operator

Benesse Style Care

Nichii Carepalace

Proud Life Inc.

Remaining years of leaseagreement (Note 4)

1.2 years

9.1 years

28.7 years

47

Ⅶ Appendix

Details of Portfolio⑩
Serviced housing for the elderly

Location

Nearest station

Medical service-related
facilities, etc.

Paid nursing home・ medical
service-related facilities, etc.

1

1

2

3

1

SOMPO CARE Sompo no ie S
Awajiekimae

SOMPO CARE Sompo no ie S
Kobekamisawa

NOAH GARDEN CASA RICH

Niigata Rehabilitation Hospital

SHIP Senri Building

8-2-5 Kamisawadori, Hyogo-ku,
Kobe-shi, Hyogo

10-4-5 2-Jo, Utsukushigaoka,
Kiyota-ku, Sapporo-shi, Hokkaido

761 Kizaki, Kita-ku, Niigata-shi,
Niigata

1-4-3 Shinsenri-higashimachi,
Toyonaka-shi, Osaka

Kamisawa Stationon the Kobe Municipal Subway
Seishin-Yamate Line

Kaminopporo Stationon the JR Chitose Line

Hayadori Stationon the JR Hakushin Line

Senri-Chuo Stationon the Kita-Osaka Kyuko Namboku
Line and the Osaka Monorail

3-20-26 Awaji,
Higashiyodogawa-ku,
Osaka-shi, Osaka
Awaji Stationon the Hankyu Railway Kyoto andSenri Lines

Construction completion

June 2009

June 2009

March 2015(New construction)
Octorber 2016(Expansion)

April 1990 (Building 1)
February 2001 (Building 2)

September 2008

Acquisition period

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2022

Fiscal period ended January 2018

Fiscal period ended July 2019

Appraisal NOI (Note 1)

116 million yen

72 million yen

91 million yen

152 million yen

677 million yen

Appraisal NOI yield (Note 1)

6.0％

6.0％

5.6％

7.3％

5.2％

Appraisal value (Note 1)

2,390 million yen

1,440 million yen

1,750 million yen

2,270 million yen

14,500 million yen

Acquisition price (ratio)

1,930 million yen (2.4%)

1,200 million yen (1.5%)

1,619 million yen（2.0％）

2,060 million yen (2.6%)

12,920 million yen (16.3%)

Site area

1,251.26 m²

743.22 m²

9,012.28㎡

15,056.85 m²

4,202.65 m²

Leasable area

5,745.15 m²

4,058.35 m²

4,986.98㎡

13,476.55 m²

24,813.85 m²

Structure/
number of floors (Note 2)

RC, 12F

S, 9F

RC, 4F（SECOND COURT︓5F）

RC, 3F (Building 1)
S, 5F (Building 2)

RC, B1 11F

Number ofrooms/resident capacity

137rooms, 137 people

85 rooms, 85 people

115 rooms, 115 people

168 beds

Hospital: 400 beds
Paid nursing home: 181 rooms,
200 people

occupancy rate (Note 3)

83.9％

100.0%

70.4％-

Paid nursing home: 100 %Operator

Sompo Care Inc.

Sompo Care Inc.

NOAH KONZER

Medical Corporation AIKOKAI

Kyowakai Medical Corporation
GREEN LIFE

Remaining years of leaseagreement (Note 4)

10.5 years

10.5 years

26.1 years

23.1 years

14.7 years(Note 1) Figures in Appraisal NOI, Appraisal NOI yield and Appraisal Value are as of January 31, 2024. Appraisal NOI is rounded down to the nearest million yen and Appraisal NOI yield to the first decimal place.
(Note 2) As for abbreviation used in Structure column, SRC refers to steel-reinforced concrete, RC refers to reinforced concrete and S refers to steel structure.
(Note 3) The bed occupancy rate indicates the ratio obtained by dividing the number of residents by the capacity, rounded off to the first decimal place. The number of residents used in the calculation is described in thelatest Property Disclosure Statement of Important Matters, which the Asset Management Company obtained as of the date of preparing this document, for the facilities and housing for the elderly owned by HCM.
(Note 4) Remaining years of lease agreement is as of January 31, 2024, rounded down to the first decimal place.

48

Ⅶ Appendix

Operator List①
Number of facilities(Note 1)

Operator nameGREEN LIFE Co., Ltd.
GREEN LIFE HIGASHINIHONCo., Ltd.

Sompo Care Inc.

Kyowakai Medical
Corporation

Benesse Style Care
Co., Ltd.

Proud Life Inc.

NOAH KONZER
Co.,Ltd

Attribute

Facilities andhousing forthe elderly

Hospital

29

－

39

452

4

(Note 4)

351

33

25

Remarks

Facilities owned by HCM

Share
(%)

(Note 2)A consolidated
subsidiary of SHIPHEALTHCAREHOLDINGS, INC.,
which is listed on
the TSE Prime
MarketA nursing care business that plays a central
role in the Lifecare Business of SHIPHEALTHCARE HOLDINGS, INC. Operates
nursing care facilities nationwide.

AQUAMARINE Nishinomiyahama
Kobe Gakuentoshi Building
GreenLife Moriguchi
Hapine Kobe Uozaki Nibankan
Smiling Home Medice Adachi
SHIP Senri Building

A consolidated
subsidiary of
Sompo Holdings,
Inc., which is listedon the TSE Prime
MarketMainly operates paid nursing homes with careservice under the Sompo Care La vie Re
brand and mid-to low-end homes under the
SOMPO CARE Sompo no ie brand and the
SOMPO CARE Sompo no ie S brand, centeringon three major metropolitan areas.

SOMPO CARE La vie Re Machidaonoji
SOMPO CARE La vie Re Azamino
SOMPO CARE Sompo no ie S Awajiekimae
SOMPO CARE Sompo no ie S Kobekamisawa
SOMPO CARE La vie Re Hama-Kawasaki
SOMPO CARE La vie Re Kobeikawadani
SOMPO CARE Sompo no ie Sayama

6-

A major medical corporation operating a wide
range of businesses including six hospitals(2,108 beds), four long-term care healthfacilities (495 beds), and home care support.
Provides safe and convenient medical/nursing
care services ranging from acute-stage
medical care to rehabilitation, home medicalcare, and nursing care.

SHIP Senri Building

9.6－

A consolidated
subsidiary ofBenesse Holdings,
Inc., which is listedon the TSE Prime
MarketOperates seven brands in Tokyo, Osaka,
Nagoya, and elsewhere in Japan. The brands
are mainly mid-to high-end, such as
Bonsejour and GRANNY AND GRANDA.

Bonsejour Chitose-funabashi
Bonsejour Hino
Bonsejour Musashi-shinjo
Medical Rehabilitation Home Bonsejour Hadanoshibusawa
Rehabilitation Home Bonsejour Yotsugi
Medical Home Bonsejour Itami
Granda Tsuruma-Yamato
Rehabilitation Home Granda Minamiurawa
Madoka Minamiurawa

8.9－

A consolidated
subsidiary of Sony
Group Corporation,
which is listed on
the TSE Prime
MarketA former Yuuai Holdings Group company.
Operates paid nursing homes, etc. under the“Hanakotoba” brand, centering on Kanagawa
Prefecture. Affiliated with Sony Financial
Holdings Inc. since 2017.

Hanakotoba Minami
Hanakotoba Miura
Hanakotoba Odawara
Hanakotoba Shin-Yokohama
Hanakotoba Shin-Yokohama II
Hanakotoba Oppama

7.0

Unlisted company

The company operates facilities and for theelderly in Sapporo City, and the number offacilities serviced housing for the elderly andthe number of units they operate rank first in
Hokkaido. The company is a comprehensive
welfare service provider also engaging in thedevelopment of medication support systems
and rental of assistive products with its
affiliated companies providing meal services,
designing and constructing medical/nursing
care facilities, etc.

NOAH GARDEN LEGENDNOAH GARDEN L Grace
NOAH GARDEN Season BellNOAH GARDEN CASA RICH

5.6

－

－

－

23.8

(Note 3)16.9

49

Ⅶ Appendix

Operator List②
Number of facilities(Note 1)

Operator name

Sawayaka Club Co.,Ltd.

Facilities andhousing forthe elderly

97

Attribute

Remarks

Facilities owned by HCM

Hospital

－

Share
(%)

(Note 2)A of UCHIYAMAHOLDINGS Co.,
Ltd., which is listedon the TSE
Standard Market

Operates facilities under the SAWAYAKA
brand (low price range without advance fees)around Japan, centering on Fukuoka
Prefecture.

SAWAYAKA Tachibanakan
SAWAYAKA Mekarikan
SAWAYAKA Tagawakan

4.2

Sunny Life Kita-Shinagawa
Sunny Life Kamakura

4.1

Kawashima
Corporation

154－

Unlisted company

A major nursing care business operator
operating nationwide centering on the Tokyo
Metropolitan Area, with Sunny Life as themain brand and under the motto “Encourage
the elderly and the family to get relieved
from exhausting nursing care.” None of theirfacilities requires initial fees.

Verde Corporation

6－

Unlisted company

A core company of the Hotaka Kai Group, anursing care/welfare business group holding
the largest number of rooms in Gunma
Prefecture.

Verde Minowa
Verde Hotaka

3.7

Operating hospitals and clinics as well as paid
nursing home with care service, group homeand long-term care health facilities in Niigata
Prefecture

Aikoen Ichibankan Building
Niigata Rehabilitation Hospital

3.6

Medical Corporation
AIKOKAI

13

2

A medical
corporation which
belongs to NSG
Group with sales ofover 120 billion
yen (Note 5)

AS PARTNERS Co.,
Ltd.

24

－

Unlisted company

Operates paid nursing homes and day service
facilities under the ASHEIM brand in theTokyo Metropolitan Area.

ASHEIM Hikarigaoka
ASHEIM Bunkyohakusan

3.6

The company operates three brands ofsenior residences,”Nichii Home”, ”Nichii
Maison”, and ”Iris Garden”, in the Kanto andKansai areas.

Nichii Home Nishikokubunji
Nichii Maison Inage

2.8

Nichii Carepalace
Company88－

A consolidated
subsidiary of
NICHIIGAKKAN
CO., LTD., whichis unlistedcompany

Meisho Co., Ltd.

31－

Unlisted company

Having Sonoda Medical Corporation as its
parent organization, the company operates
paid nursing homes and such in Tokyo,
Saitama and Chiba Prefectures.

Heartland Kawaguchi Meiseien

2.5－

Unlisted company(Capitalpartnership byNomura Real
Estate Holdings,
Inc.)

Operates paid nursing homes under the
GOOD TIME HOME brand in Tokyo. Operates
in Kyushu and Hokkaido besides the Tokyo
Metropolitan Area through SOUSEIJIGYOUDAN Co., Ltd., the parent company,
and other subsidiaries.

GOOD TIME HOME Fudo-mae

2.2－

A affiliate ofZensho Holdings
Co., Ltd., which islisted on the TSE
Prime Market

The company is a nursing care service
provider under the umbrella of Zensho
Holdings Co., Ltd., which operates foodservise and such.

Royal Kawaguchi

1.6JAPAN LIFEDESIGNInc.

SENIOR LIFE
SUPPORT Co.,Ltd32(Note 1) “Number of facilities” indicates figures tallied by the Asset Management Company based on information obtained from each company (including announced materials) and information on its website (as of March 31, 2023).
(Note 2) Shares based on acquisition price are indicated. Furthermore, the operators of SHIP Senri Building are separated based on an area basis, with Kyowakai Medical Corporation for the Senri-Chuo Hospital portion and GREEN LIFE Co., Ltd.
for the other portions.
(Note 3) The share of GREEN LIFE HIGASHI NIHON Co., Ltd. is 2.8%.
(Note 4) Only the number of long-term care health facilities is indicated.
(Note 5) Indicates the actual figures in September 2022 based on NSG Groupʼs website.

50

Ⅶ Appendix

Summary of Appraisal Report①
Summary of Appraisal Report (Note 1)

Property name

AQUAMARINE Nishinomiyahama
Bonsejour Chitose-funabashi
Bonsejour Hino
Bonsejour Musashi-shinjo
Medical Rehabilitation Home Bonsejour Hadanoshibusawa
ASHEIM Hikarigaoka
ASHEIM Bunkyohakusan
SOMPO CARE La vie Re Machidaonoji
SOMPO CARE La vie Re Azamino
SAWAYAKA Tachibanakan
SAWAYAKA Mekarikan
SAWAYAKA Tagawakan
GOOD TIME HOME Fudo-mae
Rehabilitation Home Bonsejour Yotsugi
Medical Home Bonsejour Itami
Kobe Gakuentoshi Building
GreenLife Moriguchi
Hapine Kobe Uozaki Nibankan
Granda Tsuruma-Yamato
Smiling Home Medice Adachi
AIKOEN ICHIBANKAN Building
Hanakotoba Minami
Hanakotoba Miura
SOMPO CARE La vie Re Hama-Kawasaki
Hanakotoba Shin-Yokohama

Appraisal company

Rich Appraisal
Institute Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
JLL Morii Valuation &Advisory K.K.
Japan Real Estate
Institute

End of January
2024
Appraisal value(million yen)(A)

Direct capitalization
methodDCF method
Terminal
capitalization
rate (%)

Appraisal NOI(million yen)
(Note 3)End ofJuly 2023
Appraisal value(million yen)(B)

Difference(million yen)(A)-(B)

Indicatedvalue(million yen)

Capitalization
rate
(%)

Indicatedvalue(million yen)

Discount rate(%)
(Note 2)

2,140

2,150

5.1%

2,130

4.8%

5.3%

117

2,100

+40

997

1,020

4.3%

987

4.4%

4.5%

48

997

0

834

849

4.7%

827

4.8%

4.9%

43

834

0

643

653

5.1%

638

5.2%

5.3%

39

643

0

850

864

5.0%

844

5.1%

5.2%

47

850

0

1,590

1,600

4.5%

1,580

4.3%

4.6%

76

1,600

△10

1,790

1,800

4.1%

1,770

3.9%

4.2%

74

1,790

0

4,230

4,250

4.4%

4,200

4.2%

4.5%

192

4,230

0

3,560

3,590

4.2%

3,530

4.0%

4.3%

156

3,560

0

1,630

1,650

5.2%

1,610

5.0%

5.4%

93

1,640

△10

1,480

1,490

5.4%

1,460

5.2%

5.6%

85

1,480

0

405

408

5.4%

401

5.2%

5.6%

25

405

0

2,100

2,110

4.1%

2,080

3.9%

4.2%

91

2,100

0

905

922

4.6%

897

4.7%

4.8%

47

905

0

557

566

5.1%

553

5.2%

5.3%

38

557

0

4,800

4,870

4.3%

4,770

4.1%

4.5%

226

4,700

+100

4,850

4,930

4.2%

4,820

4.0%

4.4%

220

4,750

+100

1,050

1,070

4.3%

1,040

4.1%

4.5%

48

1,030

+20

1,030

1,040

4.7%

1,020

4.8%

4.9%

52

1,030

0

2,490

2,530

4.4%

2,470

4.5%

4.6%

118

2,500

△10

824

826

5.0%

823

5.1%

5.2%

43

827

△3

1,210

1,220

4.3%

1,200

4.1%

4.4%

55

1,270

△60

670

679

4.6%

666

4.7%

4.8%

34

682

△12

1,850

1,880

4.5%

1,820

4.3%

4.7%

89

1,850

0

2,520

2,540

4.0%

2,500

3.8%

4.1%

109

2,520

0

51

Ⅶ Appendix

Summary of Appraisal Report②
Summary of Appraisal Report (Note 1)

Property nameAppraisal company

Hanakotoba Shin-Yokohama II
Hanakotoba Odawara
Verde Minowa
Verde Hotaka
Sunny Life Kita-Shinagawa
Sunny Life Kamakura
Nichii Home Nishikokubunji
SOMPO CARE La vie Re Kobeikawadani
SOMPO CARE Sompo no ie Sayama
Royal Kawaguchi
NOAH GARDEN LEGENDNOAH GARDEN L Grace
NOAH GARDEN Season BellHeartland Kawaguchi Meiseien
Rehabilitation Home Granda Minamiurawa
Madoka Minamiurawa
Nichii Maison Inage
Hanakotoba Oppama
SOMPO CARE Sompo no ie S Awajiekimae
SOMPO CARE Sompo no ie S Kobekamisawa
NOAH GARDEN CASA RICH
Niigata Rehabilitation Hospital
SHIP SENRI BUILDING
Total(Note 1)
(Note 2)
(Note 3)

Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Rich Appraisal
Institute Co., Ltd.
Rich Appraisal
Institute Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteRich Appraisal
Institute Co., Ltd.
Rich Appraisal
Institute Co., Ltd.
Rich Appraisal
Institute Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.

End of January
2024
Appraisal value(million yen)(A)

Direct capitalization
methodDCF method
Terminal
capitalization
rate (%)

Appraisal NOI(million yen)
(Note 3)End ofJuly 2023
Appraisal value(million yen)(B)

Difference(million yen)(A)-(B)

Indicatedvalue(million yen)

Capitalization
rate
(%)

Indicatedvalue(million yen)

Discount rate(%)
(Note 2)

382

385

5.0%

379

4.8%

5.2%

21

384

△2

962

979

4.8%

955

4.9%

5.0%

49

964

△2

1,770

1,780

4.8%

1,760

4.6%

5.0%

106

1,730

+40

1,590

1,610

5.2%

1,580

5.0%

5.4%

90

1,450

+140

2,130

2,170

4.1%

2,110

3.9%

4.3%

90

2,090

+40

1,650

1,680

4.3%

1,640

4.4%

4.5%

76

1,620

+30

793

808

4.1%

786

3.9%

4.3%

36

777

+16

1,300

1,320

4.3%

1,290

4.1%

4.5%

63

1,300

0

646

656

4.7%

642

4.5%

4.9%

32

647

△1

1,360

1,380

4.1%

1,350

3.9%

4.3%

62

1,340

+20

930

940

5.0%

920

5.1%

5.2%

48

910

+20

670

680

5.0%

670

5.1%

5.2%

35

660

+10

1,550

1,560

4.9%

1,540

5.0%

5.1%

78

1,520

+30

2,280

2,300

4.1%

2,260

3.9%

4.2%

100

2,280

0

1,110

1,120

4.1%

1,100

3.9%

4.2%

49

1,110

0

883

893

4.1%

878

3.9%

4.2%

39

883

0

1,670

1,700

4.6%

1,660

4.4%

4.8%

83

1,670

0

512

515

4.4%

511

4.5%

4.6%

25

514

△2

2,390

2,420

4.7%

2,360

4.5%

4.9%

116

2,390

0

1,440

1,460

4.8%

1,420

4.6%

5.0%

72

1,450

△10

1,750

1,780

5.0%

1,740

5.1%

5.2%

91

1,730

+20

2,270

2,280

6.5%

2,260

6.3%

6.7%

152

2,300

△30

14,50014,7004.4%

14,400

4.5%

4.6%

677

14,200+300

89,54390,623―

88,847

―

―

4,379

88,769+774“Appraisal value” is based on the appraisal report with January 31, 2024, as the appraisal date.
“Discount rate” represents a yield used to discount net cash flow during an analysis period and terminal value at the end of an analysis period back to present value. The indicated figures are those used by the respective appraisal organizations.
“Appraisal NOI” indicates net operating income obtained by direct capitalization method stated in real estate appraisal report with July 31, 2023 as the appraisal date, rounded down to the nearest million yen. In addition, NOI is revenue before
deducting depreciation and differs from NCF (net cash flow), which is the amount calculated by adding the gain on investment from security deposits, etc. to NOI and deducting capital expenditures. The same shall apply hereinafter in thisdocument.

52

Ⅶ Appendix

Status of Income/Expenditure of Properties①(Unit: thousand yen)

Real estate leasebusiness revenue
Property nameReal estate lease business expenses

Rent
Other
revenue revenue

Property tax Outsourcing

RepairexpensesInsurance
expenses

Depreciation
andamortization

18th FPNOI
Other(Note 2)17th FPNOI(Note 2)AQUAMARINE Nishinomiyahama

25,048

4,264

2,100

354

236

17,693400

59,98760,014

Bonsejour Chitose-funabashi

5,629

1,831

225

-

122

3,048

401

21,381

21,426

Bonsejour Hino

5,086

1,247

214

-

93

3,130

400

19,472

19,490

Bonsejour Musashi-shinjo

4,128

1,030

167

-

82

2,447

400

16,161

16,210

Medical Rehabilitation Home Bonsejour
Hadanoshibusawa

8,410

1,810

213

-

168

5,817

400

21,091

21,090ASHEIM Hikarigaoka

20,275

3,820

381

1,183

212

11,8642,811

37,33840,850ASHEIM Bunkyohakusan

13,388

2,580

381

-

129

8,882

1,414

37,981

38,995

SOMPO CARE La vie Re Machidaonoji

51,799

6,038

780

3,533

392

40,655400

93,85595,426

SOMPO CARE La vie Re Azamino

32,536

4,686

780

1,768

285

24,617400

77,30377,158SAWAYAKA Tachibanakan

23,834

2,668

1,200

-

370

19,195400

47,21747,214SAWAYAKA Mekarikan

23,059

2,980

1,200

-

273

18,205400

43,38043,375

7,890

1,106

1,200

-

119

5,064

400

12,871

12,856

GOOD TIME HOME Fudo-mae

16,438

3,061

600

1,730

182

10,465400

45,02643,927

Rehabilitation Home Bonsejour Yotsugi

4,940

949

223

-

80

3,286

400

20,71920,740

Medical Home Bonsejour Itami

6,553

1,402

371

-

120

4,260

400

13,94013,970

Kobe Gakuentoshi Building

55,305

9,585

900

2,501

641

41,277400

112,372

113,530

GreenLife Moriguchi

43,428

7,137

1,363

4,840

418

27,828

1,839

104,399

107,450

Hapine Kobe Uozaki Nibankan

10,205

1,391

1,200

556

100

6,557

400

23,852

24,411

Granda Tsuruma-Yamato

7,364

1,934

618

-

152

4,260

400

27,051

26,871

Smiling Home Medice Adachi

16,077

3,327

540

-

177

11,632400

60,76360,203

AIKOEN ICHIBANKAN Building

8,599

2,549

838

-

112

4,698

400

21,69321,651

Hanakotoba Minami

9,222

1,561

600

800

79

5,781

400

27,15927,882

Hanakotoba Miura

10,088

1,558

600

1,022

88

6,418

400

16,73017,287

SOMPO CARE La vie Re Hama-Kawasaki

19,832

3,491

2,770

-

206

12,963400

45,48245,454SAWAYAKA Tagawakan

Not disclosed (Note 1)

53

Ⅶ Appendix

Status of Income/Expenditure of Properties②
Real estate lease businessrevenue
Property nameRent
revenue(Unit: thousand yen)

Real estate lease business expenses

Otherrevenue

Propertytax

Outsourcing

Depreciation
Insurance
andexpenses
amortization

Repairexpenses

18th FPNOI
Other(Note 2)17th FPNOI(Note 2)

Hanakotoba Shin-Yokohama

14,808

4,443

900

272

249

8,543

400

55,64755,778

Hanakotoba Shin-Yokohama II

6,573

2,547

600

840

92

2,093

400

10,332

11,172

Hanakotoba Odawara

9,061

1,395

600

100

99

6,466

400

25,00424,756

Verde Minowa

28,218

5,268

1,020

-

508

21,021

400

56,711

55,176

Verde Hotaka

27,313

2,258

1,020

-

249

23,385400

46,196

43,834

Sunny Life Kita-Shinagawa

10,195

2,804

600

-

119

6,270

400

45,57545,494

Sunny Life Kamakura

13,397

2,746

720

679

179

8,672

400

38,17437,989Nichii Home Nishikokubunji

5,101

1,236

660

495

92

2,216

400

18,10818,537

SOMPO CARE La vie Re Kobeikawadani

13,487

2,943

750

852

189

8,350

400

32,12532,724

SOMPO CARE Sompo no ie Sayama

5,402

1,448

750

-

103

2,700

400

16,197

16,063

12,313

2,831

1,647

1,711

180

5,539

403

30,42531,157

10,200

1,987

300

-

129

7,615

167

24,41524,414

NOAH GARDEN L Grace

7,774

1,748

300

-

101

5,458

166

17,70517,705NOAH GARDEN Season Bell14,747

2,366

720

-

213

11,047400

40,921

40,919Heartland Kawaguchi Meiseien

15,665

2,853

720

-

223

11,466400

51,181

51,179Rehabilitation Home Granda Minamiurawa

7,563

1,777

480

96

135

4,875

200

25,37924,735

Madoka Minamiurawa

6,571

1,100

480

1,500

108

3,182

200

18,96019,360Nichii Maison Inage

14,643

3,127

900

1,030

210

8,974

400

40,531

38,849Hanakotoba Oppama

6,346

2,076

600

-

103

3,166

400

12,884

12,767

SOMPO CARE Sompo no ie S Awajiekimae

27,786

4,896

510

428

298

21,253400

57,92558,215

SOMPO CARE Sompo no ie S Kobekamisawa

17,653

2,918

510

732

183

12,908400

35,54534,780NOAH GARDEN CASA RICH

18,574

3,825

300

-

236

14,044

166

46,24846,247

Niigata Rehabilitation Hospital

28,396

9,642

1,030

-

387

16,837500

78,32078,318SHIP Senri Building

81,182

28,043

1,500

-

1,182

50,055400

340,675

340,675

832,122

168,30337,08827,027

10,426566,201

23,076 2,172,432

2,178,349

Royal Kawaguchi
NOAH GARDEN LEGEND

Total(Note 1)
(Note 2)Not disclosed

2,438,353(Note 1)

2,427,916

10,436”Real estate lease business revenue,” “rent revenue” and “other revenue” of each property are not disclosed as consent for disclosure has not been obtained from tenants. The total is the sum of amounts received as rent for
the fiscal period under review based on the lease agreements.
“NOI” = Real estate lease business revenue – Real estate lease business expenses + depreciation and amortization

54

Ⅶ Appendix

Balance Sheet and Income Statement
Balance Sheet(Unit: thousand yen)

17th Fiscal Period
ended July 2023

18th Fiscal Period
ended January 2024

Statement of Income (Unit: thousand yen)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Consumption taxes receivable
Prepaid expenses
Derivative receivables
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Deferred assets
Investment unit issuance costs
Investment corporation bond issuance costs
Total assets

Liabilities
Current liabilities

2,073,660
1,613,659
234,734
51,925
122,748
50,592－
78,684,795
78,424,916
2,445
257,432
30,75817,227
13,53080,789,213

2,331,689
1,865,272
276,880
50,257
135,567－
3,711
78,359,180
78,042,233
2,119
314,828
23,974
11,485
12,48980,714,844

10,071,151

8,390,002

17,037

63,775Current portion of long-term loans payable

7,250,000

5,550,000

Short-term loans payable

2,000,000

2,000,000

Accounts payable – other

111,882

92,903

Accrued expenses

271,803273,279863

898

17,558

8,969

Advances received

401,721400,015

Deposits received

162

162

Derivative liabilities

122－

32,100,115

33,787,853

Operating accounts payable

Income taxes payable
Consumption taxes payableNon-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in
trust

2,000,000

2,000,000

27,900,000

29,600,000

1,936,482

1,936,482

167,616

167,616

Deferred tax liabilities

13,98825,716

Derivatives liabilities

81,81957,986208
42,171,267

52
42,177,856

38,669,411
37,601,252
1,068,158△51,465△51,465
38,617,946
80,789,213

38,538,946
37,438,039
1,100,906△ 1,958△ 1,958
38,536,987
80,714,844

Other

Total liabilities
Net assets
Unitholdersʼ capital
Unitholders' capital, net
Surplus
Valuation and translation adjustments
Deferred gains or losses on hedges
Total net assets
Total liabilities and net assets

Operating revenue
Leasing business revenues

17th Fiscal Period
ended July 2023

18th Fiscal Period
ended January 2024

2,438,597

2,438,353

2,428,260

2,427,916

10,337

10,436

1,170,184

1,184,219

Expenses related to leasing business

820,379

832,122

Asset management fee

233,430

234,681

Other revenue related to leasing business

Operating expenses

Asset custody fee
Administrative service fees
Directorsʼ compensation
Property tax
Other operating expenses

Operating income
Non-operating income
Interest income
Insurance income
Interest on tax refund
Reversal of distribution payableNon-operating expenses
Interest expenses
Interest expenses on investment corporationbonds
Amortization of investment unit issuancecosts
Amortization of investment corporation bondissuance costs

2,830

2,819

16,653

17,218

5,400

5,400

33,03333,29258,456

58,684

1,268,413

1,254,133

2,803

468

8

7

2,336

－

－

131

458

329

202,338204,291

128,917

131,116

7,800

7,800

5,742

5,742

1,040

1,040

58,83858,591

Ordinary income

1,068,877

1,050,311

Income before income taxes

1,068,877

1,050,311

Borrowing expenses

Income taxes - current

864

899

Income taxes - deferred△7△1

Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

857

897

1,068,020

1,049,413

138

51,492

1,068,158

1,100,906

55

Ⅶ Appendix

Information Related to Investment Units
Status of Unitholders

List of Top Unitholders

Ratio of Number of Investment Units Ratio of Number of Unitholders
by Unitholder Typeby Unitholder Type
Securities companies
Foreign investors
18.4%

27.9%

Other companies
4.3%
Securities
companies
2.1%

1.4%
Foreign investors

Financial institutions
0.2%

Total
359,500
units

Total
16,652
peopleIndividuals, etc,

47.3%

97.0%

Changes in Ratio of Number of Investment Units by
Unitholder Type (most recent 5 fiscal periods)
5.1%
2.4%

50.8%

15.9%

17.6%

18.4%

Foreign

4.2%
3.6%

4.1%
2.7%

4.3%
2.1%

investors
Other

51.1%

49.7%

47.3%

Securities
companies
Financial
institutions

30.5%

25.8%

25.2%

25.8%

27.9%

14th FP

Custody Bank of Japan, Ltd.
(Trust Account)

90,69625.2

２

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

42,467

11.8

3

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

15,745

4.4

４

NORTHERN TRUST CO. (AVFC) RE
FIDELITY FUNDS

15,587

4.3

5

SSBTC CLIENT OMNIBUS ACCOUNT

4,336

1.2

6

JP MORGAN CHASE BANK 385771

4,068

1.1

7

Morgan Stanley MUFG Securities Co.,
Ltd.

4,044

1.1

8

JP MORGAN CHASE BANK 385781

4,003

1.1

9

NEC Capital Solutions Limited

4,000

1.1

9

SHIP HEALTHCARE HOLDINGS INC.

4,000

1.1

9

Sumitomo Mitsui Banking Corporation

4,000

1.1

192,946

53.7

Individuals,
etc,(Note)

１companies
55.6%

15th FP

Ownership
ratio
(%)

(Note)

Financial institutions

8.6%
4.3%
5.7%

Number ofinvestment
units owned(units)1.3%(Note) Increased by 774 from the previous fiscal period

11.1%

Name

Other companies

0.1%

Individuals, etc,

Ranking

16th FP

17th FPThe ratio of each index is rounded off to the first decimal place.

18th FP

Total

56

Ⅶ Appendix

HCMʼs Investment Philosophy and Three Features
Three Features

Investment Philosophy

Investment in healthcare facilities for which
demand is expected to grow• Increase in demand due to further advancement of aging
Serve as a conduit between the nursing care andmedical service industries and the capital markets

Develop a portfolio specialized inhealthcare facilities, for which
demand is expected to growPromote the supply of healthcare
facilities as social infrastructuresociety• Upgrades and expansion of healthcare facilities backed bygovernment policy

Strong support from sponsors• Utilization of advanced expertise in “nursing care andmedical service,” “fund management” and “finance” heldby SHIP HEALTHCARE, NEC Capital and SMBC

• Securement of property acquisition opportunities byutilizing extensive networks

We seek to realize a society where
all people can live vibrantly andwith peace of mind

Stable cash flow in the long term•

Conclusion of long-term fixed-rent lease agreementswith credible operators•

Proper portfolio management based on strong
relationship with operators

57

Ⅶ Appendix

Overview of Unitholder Special Benefit Plan
With the cooperation of operators, we offer unitholder special benefits.
Company Name

Details of Special BenefitsDiscount initial fee or monthly feeFree trial move-in (two-days and one-night with meals)Discount initial feeFree trial move-in (two-days and one-night with meals)Tour with free lunchDiscount monthly fee for initial monthFree trial move-in (two-days and onenight with meals)Discount initial feeDiscount monthly fee

Proud Life Inc.



Discount initial fee or deposit

Lifecare Design Inc.



Discount initial fee

Nichii Carepalace Company



Discount initial feeTour with free lunch

Deposit reduction

Sompo Care Inc.

JAPAN LIFEDESIGN Inc.
GREEN LIFE Co., Ltd.
GREEN LIFE HIGASHI NIHON Co.,Ltd.
Sawayaka Club Co., Ltd.

AS PARTNERS Co., Ltd.

NOAH KONZER Co.,Ltd(Note) The special benefits are for unitholders as of the end of January 2024 and are subject to change in the future.

Tour with free lunchFree trial move-in (four-days andthree-nights)

Tour with free lunch

58

Ⅶ Appendix

Profile of Asset Management Company
Organizational Structure

Profile of the Company

Trade name

Healthcare Asset Management Co., Ltd.

Location

3-3 Kanda-Ogawamachi, Chiyoda-ku, Tokyo

FoundedNovember 28, 2013

Capital stock

150 million yen

CEO

Seiji Yoshioka

Shareholders

General Meeting of
Shareholders
Audit & Supervisory
Board Member

Board of Directors

SHIP HEALTHCARE HOLDINGS, INC.

33.3%

NEC Capital Solutions Limited

33.3%

Sumitomo Mitsui Banking Corporation

5.0%

Sumitomo Mitsui Finance and Leasing Company,

4.8%

LimitedManagement Committee

Compliance Committee

Representative Director

Internal Audit Office

SMBC Nikko Securities Inc.

4.8%

Yoei Co.,Ltd.

4.7%

Ginsen Co.,Ltd.

4.7%

Kobe Tochi Tatemono Co.,Ltd.

4.7%

Muromachi Building Co.,Ltd.

4.7%

Investment
Department

Asset
Management
Department

Compliance Office

Healthcare
Business
Promotion
Department

Financial &Administration
Department

Registered as a financial service provider
Director of Kanto Local Finance Bureau (Kinsho) No. 2815
Registration,
license, etc.

License as a building lots and buildings business operator
Governor of Tokyo (3) No. 96339
License as an entrusted agency services for transactions
Minister of Land, Infrastructure, Transport and Tourism No. 85

59

Ⅶ Appendix

Profile of Major Sponsors
SHIP HEALTHCARE HOLDINGS INC.
With a stated mission to “create an environment of people protecting life,”
SHIP HEALTHCARE HOLDINGS, INC. focuses on the five business domains of
medical, health, welfare, nursing care and services. Centering around thepartnership with medical institutions, the entire group companies carry out avariety of nursing care and medical service-related businesses, ranging fromconsultation on reconstruction, development, etc. of hospitals and such tooperation of nursing homes and dispensing pharmacy business.

Headquarters
location

3-20-8 Kasuga, Suita-shi, Osaka

Representative

Chairman: Kunihisa Furukawa
President: Futoshi Ohashi

FoundedAugust 1992

Capital stock

15,553 million yen

Sales572,285 million yen on a consolidated basis(fiscal period ended March 2023)

NEC Capital Solutions Limited

As the NEC Group's comprehensive financial services company, NEC Capital
Solutions Limited delivers finance services such as leasing and installment
payments to a broad customer base. In addition, it offers investments, loans,
and advisory services through funds, etc. in the business domains of“companies,” “credits,” and “assets,” mainly through its subsidiary, RISA
Partners, Inc.

Headquarters
location

2-15-3 Konan, Minato-ku, Tokyo

Representative

President: Masaaki Suganuma

FoundedNovember 1978

Capital stock

3,776 million yen

Sales

258,107 million yen(fiscal period ended March 2023)

Sumitomo Mitsui Banking Corporation

Positioned as the core company of the SMFG, SMBC possesses one of thestrongest sales foundations in Japan as well as the ability to executestrategies quickly, and is capable of providing financial services through its
influential group companies. Furthermore, it boasts one of the strongest
track record in Japan for financing listed real estate investment corporations.

Headquarters
location

1-1-2 Marunouchi, Chiyoda-ku, Tokyo

Representative

President and CEO: Akihiro Fukutome

Capital stock

1,770,996 million yen

60Disclaimer
This presentation material contains forward-looking statements including forecasts,
outlooks, goals and plans. These statements are based on the information
available as of the date when this material is prepared (March 19, 2024) andincorporate certain subjective assumptions about uncertain factors that may affectfuture results. Accordingly, these statements are inherently not guarantees of
future performance and actual results may differ materially.
The opinions, outlooks and estimates contained in this material reflect our viewand judgment based on information as of the date when this material is preparedand involve risks and uncertainties.
No guarantee is made as to the accuracy, completeness, appropriateness andvalidity of information contained in this material. It is not promised that
information contained in this material will always be updated.
Contents of this material are subject to change without notice.
This material is not intended as a solicitation for investment. Any investment
decision must be made based on your own judgment and responsibility.

61