Financial Results
Briefing materials
Financial Period Ended January 2022
（14 th Fiscal Period）
March 18, 2022

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.

Contents
Ⅰ

Ⅲ

Topics1.

Highlights for 14th Fiscal Period (Ended
January 2022)

2. Overview of Public Offering
Ⅱ

P3
P4

Financial Summary
Major Indexes for 14th Fiscal Period(Ended January 2022)
Actual Results for 14th Fiscal Period
2.
(Ended January 2022)
Earnings Forecasts for3.
15th Fiscal Period (Ending July 2022) and16th Fiscal Period (Ending January 2023)

1.

4. Financial Status
5.

Changes inDistribution Per Unit／NAV Per Unit

Ⅳ
P8
P9
P10
P11
P12

6. Changes in Unrealized Gain

P13

7. Changes in Unit Price(from January 31, 2019)P14

8. Global Index

P15

Status of Asset Management
1. Portfolio Highlights

P17

2. Stable Cash Flow in the Long Term

P18

Actions for Enhancement of Unitholder Value
1. Road Map to External Growth

P21

2. Expansion of Pipeline

P22

3. Actions for Hospital Projects

P24

4. ESG Initiatives

P25

Ⅴ

Appendix①

Ⅵ

Appendix②

1

Topics

Ⅰ
2

I Topics

1. Highlights for 14th Fiscal Period (Ended January 2022)

1 PerformanceOperating revenue:2,080 million yen (+7 million yen from previous fiscal period, +0 million yen from forecast)
Net income:913 million yen (△8 million yen from previous fiscal period, +2 million yen from forecast)Distribution per unit :3,244 yen(△22 yen from previous fiscal period, +8 yen from forecast)
NAV per unit
:124,814 yen(+3,907 yen from previous fiscal period)

2 Financial StatusInterest-bearing liabilities totaled 33.15 billion yen (±0 billion yen from previous fiscal period), with LTV at 48.2%(+0.1% from previous fiscal period)
Long-term issuer ratings (JCR) : A (Positive)

3

Management Status
 Asset size is 37 properties/67.0 billion yen, with unrealized gain expanded to 6.9 billion yen.
 The impact of COVID-19 is little. The operational rate is 100%.
No rent reduction/exemption, deferral of rent payment.

3

I Topics

2. Overview of Public Offering①
HCM made a public offering for the first time since February 2019 and realized enhancement ofunitholder value by external growth.

Overview of the assets acquired/to be acquired through the
public offering

Overview of the offering
Launch date

January 17, 2022

Price determination date

January 25, 2022

Payment dateFebruary 1, 2022

Number of new investment
units issued (Note 1)
Total number of investment
units outstanding

48,499 units
359,500 units

Issue price

124,764 yen

Issue value

120,477 yen

Amount paid in (Note 1)

5,843,014,023 yen

Total
acquisition price

Number ofproperties

10 properties

11.4 billion yen 12.1 billion yen

Average appraisal
NOI yield

Average remaining
lease term (Note 3)

Portfolio
operational rate

5.2%

19.6 years

100％

Investment highlights

Change in portfolio indicators

1 Stable portfolio backed by expertise・Asset size

and track record as a REIT dedicatedto healthcare facilities.

2 External growth utilizing wide

networks and sponsor support.

3 Robust financial structure and ESG
initiatives.

Total appraisal
value (Note 2)

67.0 billion yen+11.4 billion yen

・Distribution per unit(Ended July 2022）+109 yen

3,238 yen

(Initial forecast(Note 4))・NAV per unit（Note 5）

124,814 yen

48.2%

3,347 yen
（Forecast）+1,438 yen

126,252 yen(expected figures on
March 31, 2022)(Ended January 2022)(Note 1) “Number of new investment units issued” and “Amount paid in” include those for third-party allotment on March 1, 2022 (payment date).
(Note 2) “Total appraisal value” is indicated based on the appraisal report with November 30, 2021, as the appraisal date.
・LTV（Note 5）(Note 3) “Average remaining lease term” is the remaining lease years of newly acquired/to be acquired assets as of the date of each acquisition
calculated by weighting and averaging them with acquisition price and has been rounded down to the first decimal place.
(Note 4) The initial forecast is the forecast figure announced in “ (REIT) Financial Report for Fiscal Period Ended July 2021” dated September 14, 2021
(Ended January 2022)(Note 5) “NAV per unit” and “LTV” after the public offering are provisionally calculated by reflecting the public offering (third-party allotment),
property acquisition and borrowings on and after February 1, 2022, in the actual results as of the end of the 14th fiscal period.

78.4 billion yen(expected figures on
March 31, 2022)（Ended January 2022）

±0pt

48.2%

(expected figures on
March 31, 2022)

4

I Topics

2. Overview of Public Offering② ~The assets acquired/to be acquired~
By various sourcing routes and the warehousing functions, HCM acquired 10 healthcare facilities
in Tokyo Metropolitan area, Kinki area and Hokkaido (Sapporo).
SOMPO CARE
SOMPO CARE
La vie Re
GrandaMadokaRoyal
Sompo no ie
KobeMinamiurawa Minamiurawa Kawaguchi
Sayamaikawadani

SellerKobe Tochi
Tatemono
Co.,Ltd

Sakai
engineering
Godo Kaisha
NEC Capital Solutions Limited Ginsen Co.,Ltd
and
MYGK 4-Go
construction
Co.,Ltd

Type
Operator
Location(Planned)
Acquisition
price(million yen)Appraisalvalue(million yen)Appraisal
NOI yield

Paid nursing home with care service
Sompo Care Inc.

Building age（note）(Planned)
Acquisition
date

NOAH
GARDENLEGENDNOAHGARDEN
L GraceNOAH
GARDENCASA RICH

Godo Kaisha
NOAH GARDEN Utsukushigaoka

Residential typepaid nursing home

SENIOR LIFENOAH
GARDEN
Season BellNOAH KONZER
Co.,Ltd

ResidentialServiced
type
housing for thepaid nursing
elderlyhome

Benesse Style Care Co., Ltd. SUPPORT Co.,Ltd MEISHO.Co.,Ltd

NOAH KONZER Co.,Ltd

Kawaguchi-shi, Saitama

Sapporo-shi, Hokkaido

Total /
Average

Kobeshi,Hyogo

Sakaishi,Osaka

1,288

600

1,022

822

1,260

2,000

859

622

1,619

1,350

11,442

1,300

646

1,100

883

1,310

2,110

910

660

1,730

1,520

12,169

4.9%

5.4%

4.8%

4.8%

4.9%

5.0%

5.6%

5.6%

5.6%

5.8%

5.2%

Portfolio
operationalrate
Occupancy
rate

Heartland
Kawaguchi
Meiseien

100.0%

100.0%
83.8%
10.4 years

スポンサーからの取得

92.0%

90.0%

16.4オペレーター等からの取得
years
10.7 years

February 1, 2022

98.1%

89.3%

98.0%

81.9%

92.2%

85.2%

66.2%

85.5%

16.9 years

13.3 years

16.1 years

6.3 years

4.2 years

6.0 years

2.3 years

10.3 years

February 1,
2022

March 30,2022

March 30,2022-

スポンサー等が組成したSPCからの取得

March 30, 2022

February 1, 2022

(Note) “Average building age” is average values with January 31, 2022, as the base date, calculated by dividing the remaining years to maturity by 365 and weighted by acquisition price. The figures are rounded down to the first decimal place. For properties having
multiple buildings, they indicate weighted-average figures based on area.

5

Ⅰ Topics

2. Overview of Public Offering ③ ~Introductionof New Operator~
NOAH KONZER Co., Ltd.

SENIOR LIFE SUPPORT Co.,Ltd

Location

14-1-32, Nanajou, Hiragishi,
Toyohira-ku, Sapporo-shi, Hokkaido

Location

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

FoundedMarch 2002

FoundedNovember 2006

Capital stock

100 million yen

Capital stock

30 million yen

Representative

Akihiro Wakatsuki

Representative

Akinori Fujimoto

Number of facilities
under operation

22 facilities (as of November 30, 2021)

Number of facilities
under operation

2 facilities (as of November 30, 2021)

Remarks

The company operates 22 facilities and for the elderly (1,524
rooms) in Sapporo City, and the number of facilities serviced
housing for the elderly and the number of units they operate rank
first in Hokkaido. The company is a comprehensive welfare service
provider also engaging in the development of medication support
systems and rental of assistive products with its affiliatedcompanies providing meal services, designing and constructing
medical/nursing care facilities, etc.
The Noah Garden series operated by the company features highgrade buildings, large baths with natural hot spring, andreasonable fees. The nursing care services it provides include“periodic or on-call home-visit long-term care and nursing care” by
the jointly established community home-visit service center, homevisit nursing care, day care, rental of assistive products, in-homecare support, and home-visit long-term care services.

About periodic or on-call home-visit long-term care and nursing care Periodic or on-call home-visit long-term care and nursing care is a care service

available around-the-clock in which a home care worker or home care nurse visits
homes of those who require long-term care and provides long-term care andnursing care periodically or on call.

 The fee system consists of comprehensive fees of home-visit long-term care andhome-visit nursing care, and the basic fees are set in accordance with the longterm care level of the user. Additions and subtractions are made for provision ofservices tailored to the conditions of the user and the type of the office.
As-needed
response
NoticeUpon receiving a notice from a user,
respond as needed by phone,
ICT equipment, etc. or visits.

Periodic home visit

Periodic home visits are
made under integrated orclosely collaborated homevisit long-term care andhome-visit nursing care

Operator

Periodic home visit(Source) Website of the Ministry of Health, Labour and Welfare

The company is a nursing care service provider under the umbrellaof Zensho Holdings Co., Ltd., which operates food servise and such.
The Zensho Group has placed nursing care business as one of its
four business pillars, and its five group companies operate 30 paid
nursing homes, etc. centering on Hokkaido and the Tokyo
metropolitan area.



Leveraging the knowhow of the company operating major
restaurant chains, it provides “safe, delicious food and acomfortable living environment so that people in their advanced
years can enjoy a pleasant life.”

Remarks

Meisho Co., Ltd.
Location

4-3-5 Hokima, Adachi-ku, Tokyo

FoundedAugust 1998

Capital stock

10 million yen

Representative

Chiyoshi Fujita

Number of facilities
under operation

31 facilities (as of November 30, 2021)


Having Sonoda Medical Corporation as its parent organization, thecompany operates 31 paid nursing homes and such in Tokyo,
Saitama and Chiba Prefectures. Against the background of its
strong ties with hospitals, it demonstrates a strong presence in thecommunity as “a professional group of medical nursing care.”

Sonodakai Group is a major medical group which operates 13
hospitals (1,541 beds) mainly in Adachi-ku, Tokyo providing awide range of community-based medical services covering acutestage to dedicated rehabilitation.

Remarks

6

Financial SummaryⅡ
7

Ⅱ Financial Summary

1. Major Indexes for 14th Fiscal Period (Ended January 2022)

Figures in parentheses indicate the change
from the end of previous period

Asset (Assets)

Debt (Liabilities)

Number of properties

37 propertiesc(±0 property)

Total acquisition price67.0 billion yen)(±0 billion yen)

Total appraisal value

Unrealized gain

Average appraisal NOI
yield

Portfolio operational rate

Ratio of fixed rents

73.4 billion yen)(+9 billion yen)
6.9 billion yen)(+1.3 billion yen)interest-bearing liabilities

33.15 billion yen)(±0 billion yen)

Average remaining terms
to maturity

2.9 years)(+0.5 years)

Average borrowinginterest rate

0.55%)(△0.02%)

Total amount ofRatio of long-term debt
Ratio of debt with
fixed interest rates

5.6%)

100%)
（±0pt)
100%)

86.5%_

Average remaining leaseterm

12.2 years)(±0pt)(△0.5 years)

100%)(±0pt)(+0.1pt)

Long-Term Issuer Rating(JCR)

A (Positive)

Equity (Net assets)
Market cap(±0pt)

Ratio of investment inthree major
metropolitan areas(△6.8pt)

48.2%)

LTV(±0%)

72.1%)

Distribution per unit
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).

40.7 billion yen)(△6.7 billion yen)
3,244 yen)(△22 yen)
308 yen)(+4 yen)
124,814 yen)(+3,907 yen)8

Ⅱ Financial Summary

2. Actual Results for 14th Fiscal Period (Ended January 2022)
Achieved of +8 yen more than forecast of distribution per unit, while sales increased andprofit decreased compared to the previous period.
(Unit: million yen)

13th fiscal
period14th Fiscal Period Actual Results(Comparison with Forecast)

14th Fiscal Period(Ended January 2022)(Ended July 2021)
ActualForecast(Note 2)

Actual

(A)

(B)

(C)

Operating revenue

2,073

2,080

Operating expenses

994

Expenses related to leasing
business

Comparison with
Comparison with 13th Fiscal Period
Forecast

Difference in operating expenses (△2)
 Decrease in expenses related to leasing business(△4)
 Repair expenses (△2)
 Depreciation（△1）(C)-(B)(C)-(A)(C)-(A)（A）(％)

2,080

+0

+7

+0.4

1,009

1,007

△2

+13

+1.3

690

705

701

△4

+10

+1.5

(Depreciation)

473

481

479

△1

+5

+1.2

General and administrative
expenses

303

304

306

＋1

＋3

+1.0

1,078

1,070

1,072

+2

△6

△0.6

 Full-period contribution of rent revenue fromproperty acquired in the 13th fiscal period

Non-operating income

1

－

0

+0

△0

△65.4

Difference in operating expenses (+13)

Non-operating expenses

157

159

159

△0

＋1

＋0.8

Ordinary income

922

911

913

+2

△8

△0.9

Net income

921

910

913

+2

△8

△0.9

Distribution per unit (yen)

3,266

3,236

3,244

+8

△22

△0.7

 Increase in expenses related to leasing
business (+10)
 Depreciation (+5)
 Repair expenses (+4)
 Decrease in general and administrative expenses(+3)
 Asset management fee (+2)
 Survey fee (renewal of ER) (+1)

+9

△26

△0.9

△1

+4

+1.3

Operating income

Distribution of earnings
Distribution of allowance fortemporary difference
adjustments
Distribution in excess of earnings(return of capital) (Note 1)

2,962
－
304

2,927
309

2,936
－
308

14th Fiscal Period Actual Results(Comparison with 13th Fiscal Period)
Difference in operating revenue (+7)(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 14th Fiscal Period (B) is the forecast figure announced in “ (REIT) Financial Report for Fiscal Period Ended July 2021” dated September 14, 2021.

9

Ⅱ Financial Summary

3. Earnings Forecasts for 15th Fiscal Period (Ending July 2022) and16th Fiscal Period (Ending January 2023)

Approximate increase in revenue of 300 million yen is forecast in the 15th Fiscal Period due
to property acquisition through public offering and distribution per unit is expected to be
3,347 yen (+103 yen from the previous period, +109
yen from initial forecast).
(Unit: million yen)
14th Fiscal
Period(ending January 2023)(ending July 2022)(ending January
2022)

Comparison
with initial
forecast

Comparison
with 14th fiscal
periodComparison
with 15th fiscal
period forecast

Initial forecast

Forecast

(A)

(B)

(C)

(C)-(B)(C)-(A)(D)

Operating revenue

2,080

2,080

2,371

+290

+290

2,419

+48

Operating expenses

1,007

1,019

1,111

+92

+103

1,176

+65

Expenses related to leasing
business

701

710

790

+79

+88

802

+12

(Depreciation)

479

484

551

＋66

+71

563

+11

General and administrative
expenses

306

309

321

＋12

+14

373

+52

Operating income

1,072

1,061

1,259

＋198

＋187

1,242

△16

Non-operating income

0

－

－

±0

△0

－

±0

Non-operating expenses

159

149

165

＋16

+6

172

＋7

Ordinary income

913

911

1,093

+182

＋180

1,070

△23

Net income

913

910

1,092

+182

＋179

1,069

△23

Distribution per unit
(yen)

3,244

3,238

3,347

＋109

＋103

3,286

△61

Distribution per unit

2,936

2,928

3,040

＋112

＋104

2,973

△67

308

310

307

△3

△1

313

+6

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

Distribution in excess ofearnings(return of capital) (Note 1)(Note 2)

(Note 3)15th Fiscal Period Forecast (Comparison
with 14th Fiscal Period Results)

16th Fiscal Period

15th Fiscal Period

Forecast(Note 3)(D)-(C)

Difference in operating revenue (+290)

 Rent revenue from property acquired in the
15th fiscal period (+290)
Difference in operating expenses (+103)
 Increase in expenses related to leasing
business(+88)
 Depreciation (+71)
 Management service expenses (+5)
 Repair expenses (+5)

 Increase in general and administrative expenses (+14)

Expertsʼ fees (+3)
Asset management fee (+2)
Administrative service fees (+2)
Difference in Non-operating expenses (+6)






Increase in interest expenses (+5)
16th Fiscal Period Forecast (Comparison
with 15th Fiscal Period Forecast)Difference in operating expenses (+48)
 Full-period contribution of rent revenue fromproperty acquired in the 15th fiscal period (+48)
Difference in operating expenses (+65)
 Increase in expenses related to leasing
business(+12)
 Depreciation (+11)

 Increase in general and administrative expenses (+52)

Asset management fee (+30)
 Expenses related to investors meeting (+8)
 Taxes and dues (+5)
 Survey fee (+3)
Difference in Non-operating expenses (+7)
 Increase in interest expenses (+6)
(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 15th Fiscal Period (B) is the forecast figure announced in “ (REIT) Financial Report for Fiscal Period Ended July 2021” dated September 14, 2021.
(Note 3) The forecast for the 15th Fiscal Period (C) and The forecast for the 16th Fiscal Period (D) are the forecast figure announced in “ (REIT) Financial Report for Fiscal Period Ended January 2022” dated March 18, 2022.

10

Ⅱ Financial Summary

4. Financial Status
We have built a stable financial base under the bank formation centering on Sumitomo Mitsui Banking
Corporation. We have refinanced 7.0 billion yen at the end of the 14th fiscal period and plan to take out
new loans of 5.5 billion yen in the 15th fiscal period (March 2022)
Status of Interest-Bearing Liabilities

Change in LTV and Total Interest-Bearing Liabilities

End of13th FPEnd of14th FP

15th FP(expected figures on
March 31, 2022)

Total amount ofinterest-bearing Liabilities(billion
yen)

33.15

33.15

38.65

（Social bonds）(billion
yen)

20

20

20

(years)

2.4

2.9

2.9

Ratio of debt with fixedinterest rates

（%）

100

100

(Note 1)

LTV

（%）

48.1

48.2

(Note 2)Average borrowing interest rate （%）

0.57

0.55

-

Average remaining terms tomaturity

94.8

48.2

(Note 1) Of the loans of 5.5 billion yen in total (the entire amount with variable interest rates) to be taken out on
March 30, 2022, 3.5 billion yen is scheduled to have fixed interest rates after interest rate swap
transactions and thus the loans are treated as having fixed interest rates in the calculation.
(Note 2) Calculated by reflecting the public offering (third-party allotment inclusive), property acquisition and borrowings
on and after February 1, 2022, in the actual results as of the end of the 14th fiscal period.

Diversification of Lenders (expected figures on March
31, 2022)■Sumitomo Mitsui Banking
Corporation■Sumitomo Mitsui Trust Bank
■Resona Bank

4.2%
4.2%

Total amount

4.2%

36.65 billion yen

4.8%

Lender

6.1%

14 companies

34.0%■Nippon Life Insurance■Shinkin Central Bank

■Nishi-Nippon City Bank

■Dai-ichi Life Insurance Company■Hiroshima Bank

■Bank of Fukuoka■77 Bank■San ju San Bank

6.3%
8.7%

16.5%

■Gunma Bank

■Bank of Yokohama■Higashi-Nippon Bank
Total

Amount（billionyen）

Total interest-bearing liabilities(billion yen)

40

32.45

(Net assets base)
LTV（総資産ベース）(Market value base)
LTV（時価ベース）

33.15

33.15

48.1

48.2

30
47.6

20
10
0

44.4
10th FP

33.15

33.15

48.1

48.2

38.65 （％）
50
48

48.2

46
44.8

11th FP

44.9

12th FP

44.5
13th FP

44
44.0

43.8

15th FP
14th FP (expected
figures on

42

March 31, 2022)

Diversification of Maturities(expected figures on
March 31, 2022)

Ratio
（%）

12.45

34.0

6.05

16.5

3.20

8.7

2.30

6.3

2.25

6.1

1.75

4.8

1.55

4.2

1.55

4.2

1.55

4.2

1.25

3.4

0.75

2.0

0.75

2.0

0.75

2.0

0.50

1.4

36.65

100.0

(billion yen)

Existing long-term loans
New borrowing and refinanced long-term loans

1210Investment corporation bonds(social bonds)

2.00

8
6
4

9.25

1.10
7.25
4.45

2
0

0.70

16th FP

18th FP

20th FP

5.90

3.20
22th FP

24th FP

2.80

2.00

26th FP

30th FP

11

Ⅱ Financial Summary

5. Changes in Distribution Per Unit／NAV Per Unit
Distribution per unit is stable even under the COVID-19 pandemic, and NAV Per Unit has
improved.
Distribution Per Unit／NAV Per Unit(Distribution Per Unit:yen)(NAV Per Unit:yen)Distribution per unit(Excluding distribution in excess of earnings) (Note 1)

4,000

Distribution in excess of earnings per unit (Note 2)

3,643

3,500

NAV per unit
3,320

3,120

3,240

3,226

3,266

3,244

3,347

130,000
128,000

3,286

126,000

3,000
2,697

2,653

2,699

124,000

124,8142,500

122,000

2,000

120,000

120,907

118,986

1,500
117,445

1,000

119,303

119,842

119,268

118,000

118,038

116,000

115,709

114,000500

113,996

112,0000

110,000
0
5th FP

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP

12th FP(Note 1) The amount obtained by subtracting distribution in excess of earnings of distribution per unit is indicated.
(Note 2) Distribution in excess of earnings refers to distribution carried out targeting around 20% of depreciation equivalent (return of capital).

13th FP

14th FP

15th FP

16th FP

12

Ⅱ Financial Summary

6. Changes in Unrealized Gain
Since the IPO, unrealized gains have been increasing steadily.
(million
yen)
（百万円）

7,000

6,959

Unrealized gain (left axis)
Unrealized gain ratio (right axis)

10.5

6,000

5,653

5,000

4,711

4,000

7.0

6.8
6.1
5.6

3,000

2,878

7.2

7.2

4,901
7.5

5,165

5,094

8.0

7.7

7.0
6.0

3,081

5.0

2,543
4.4

2,000
1.7
1,000

4.0

2,212
1,749

3.3

3.0

1,152

2.0

811

420
0

10.0
9.0

8.5
7.7

(%)

11.0

1.0

1st FP

2nd FP

3rd FP

4th FP

5th FP

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

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

2015

2016

2016

2017

2017

2018

2018

2019

2019

2020

2020

2021

2021

2022

0.0

13

Ⅱ Financial Summary

7. Changes in Unit Price (from January 31, 2019)
The unit price of HCM outperformed the TSE REIT Index under the COVID-19 pandemic in general.
150%

TSE
REIT Index
東証REIT指数

東証REIT住宅指数
TSE
REIT Residential Index

投資口価格
HCM

January 17, 2022
Announced the third public offering（Unit price of HCM 161,400 yen）

140%

130%

February 2019
The second public offering
since IPO

March 2020
COVID-19 crisis

120%

110%

100%

90%

80%

(As of March 10,2022)

Unit price of HCM
100.0%/117,100 yen（ As of January 31, 2019 ）Unit price of HCM：124.2%/145,400 yen

TSE REIT Index：102.1%

TSE REIT Residential Index：105.8%

70%

60%

Jun. 31, 2019

Jal. 31, 2019

Jun. 31, 2020

(Note) It is indicated as a percentage with January 31, 2019, as the base date.

Jal. 31, 2020

Jun. 31, 2021

Jal. 31, 2021

Jun. 31, 2022

14

Ⅱ Financial Summary

8. Global Index
Aim for inclusion in the FTSE EPRA Nareit Global Real Estate Index in the 15th fiscal period
and after as the market cap has increased due to the public offering.
Market cap of J-REITs after adjustment for floating shares (as of March 10, 2022)<Main requirements for inclusion in the FTSE EPRA Nareit Global Real Estate Index and HCM’s Efforts>
Criteria

HCM

Judgement

Market cap

Investable market cap must be 0.1% or more of
the market cap of FTSE EPRA Nareit Developed Asia

0.11%
(as of March 10, 2022)〇

Liquidity

The median value of daily trade volume per monthmust be 0.05% or more of the number ofshares issued and outstanding

0.41%

〇

Disclosure
documents

Provision of annual reports in English

Under preparation forthe periodic review in
September 2022-

EBITDA

75% or more of annual total must come fromreal estate revenue

100%

〇

Assets50% or more of total assets must be invested inreal estate

50% or more〇(billion yen)

＜FTSE EPRA Nareit Global Real Estate Index＞


A real estate investment index developed throughcollaboration between the European Public Real
Estate Association (EPRA), the National Association ofReal Estate Investment Trust (NAREIT) and FTSE.
Adopted by many institutional investors in Japan andabroad as a benchmark for real estate investment.

0.1% (44.6 billion yen) or more

Issues included in FTSE EPRA Nareit Global Real Estate Index

Issues not included in FTSE EPRA Nareit Global Real Estate Index

HCM (not included in FTSE EPRA Nareit Global Real Estate Index)

15

Status of Asset Management

Ⅲ16

Ⅲ Status of Asset Management

1. Portfolio Highlights
Diversification Status(expected figures on March 31,2022)(Note3)

Main operational indicators
14th FP(Note 2)

Number ofproperties

37properties（±0 property）

15th FPBy Type(expected figures on
March 31, 2022)

47properties

Complex of paid nursing home,
medical service-related facilities, etc.
Medical service-related

Total acquisition
price

67.0billion yen

Total appraisal
value(Note 1)

73.4billion yen

85.6billion yen

5.6％

5.5％

17.5years

16.6years

By Area

13.1years

Core cities Other
15.0% areas（±0 billion yen）(＋0.9billion yen)

Average appraisal
NOI yield（±0pt）

Average buildingage(Note 1)（＋0.5years）

Average remaining
lease term (Note 1)

12.2year（△0.5years）

78.4billion yen

Three Major
Metropolitan areas

86.5％

82.8％

Portfolio
operational rate

100％

99.9％

Number ofoperators

13operators（±0pt）（±0pt）（±0operator）

16operators

16.5%

facilities, etc.
2.6%

Healthcare facilities
100％

Serviced housing forthe elderly

Paid nursing

6.0%

home
74.9%

Chubu area
1.6%

2.2%

By Operator

Metropolitan

Others

area

32.2%

43.2%
Three Major
Metropolitan areas
82.8%
Kinki area
38.0%

GREEN LIFE Co., Ltd. andTokyo

GREEN LIFE HIGASHI NIHON
Co., Ltd. 24.1%

Operators
16operators
Proud Life Inc.

Sompo Care Inc.

6.4%

17.0%

Kyowakai Medical Benesse Style Care
Corporation 9.7%

Co., Ltd. 10.6%(Note 1) “Total appraisal value” is indicated based on the appraisal report with January 31, 2022 (November 30, 2021 for assets acquired/to be acquired on after February 1, 2022), as the appraisal date.
“Average building age” and “Average remaining lease term” are calculated by weighting and averaging them with acquisition prices with January 31, 2022, and March 31, 2022, as the base date for the 14th fiscal period andthe 15th fiscal period (expected figures on March 31, 2022), respectively, and have been rounded down to the second 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 13th FP.
(Note 3) The figures in the graphs are calculated based on acquisition price, rounded off to the first decimal place.

17

Ⅲ Status of Asset Management

2. 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 throughbusiness due diligence and monitoring.
Operators

Operations
capability

Management
stability

Consolidation/Reinforcement of expertise in the
Healthcare Field HCM newly established the Healthcare Business Promotion

Department as a department dedicated to conducting businessevaluation of healthcare facilities and operators, survey and analysisof the healthcare industry, etc. (October 2021)

 HCM aims to strengthen its expertise in the healthcare field andasset management capabilities

Asset
Investment Management
Department Department
Expansion of
volumeQuality
improvement

Investment
Department

Expansion of volume

Healthcare Business
AssetManagement
Promotion
Department
Department

The operations that required expertise in thehealthcare field were previously carried out by
the Asset Management Department.

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

Business
model

Financial status

Compliance(Abuse prevention
measures)

Quality
improvement

Part of operations has been transferred.

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

20 years or more

Organizational
management

Staff retainment・Development

Expertise in thehealthcare field

12.2%

Ratio offixed rents
100%

Less than10

Averageremaininglease term
13.1 years

years
36.1%

(Note)

10 years or more but lessthan 20 years
51.7%(Note) The figure is based on March 31, 2022, as reference date and calculated by weighted averaging
with acquisition prices, rounded down to the first decimal place.

18

Ⅲ Status of Asset Management

2. Stable Cash Flow in the Long Term②
Portfolio operational rate of HCM has been almost 100% since the IPO, and averageoccupancy rate of each facility has been maintained at 90% or more at the moment.
Change in Portfolio Operational Rate and Average Occupancy Rate
（％）

100

100

100

100

100

100

100

99.9

100

91.6

91.5

95

90

85

85.2

100

92.6

92.4

84.9

100

91.1

91.3

85.3
portfolio operational rate

average occupancy rate

80

75

100

87.7

86.7
84.4

100

3rd FP

4th FP

5thFP
5th

Ended

Ended

July

January

2016

2017

6th FP

7th FP

Ended

Ended

July

January

2017

2018

8th FP

9th FP

Ended

Ended

July

January

2018

2019

10th FP

11th FP

Ended

Ended

July

January

2019

2020

12th FP

13th FP

Ended

Ended

Ended

Ended

July

January

July

January

2020

2021

2021

2022

14th FP(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.

19

Actions for Enhancement ofUnitholder ValueⅣ
20

Ⅳ Actions for Enhancement of Unitholder Value

1. Road Map to External GrowthWith continuous property acquisition, the asset size expanded to 78.4 billion yen.
The target of 100 billion yen asset size is likely to be reach.
Change in Asset Size and Number of Properties
February 2017

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

November 2017

・ Acquired J-REIT’s first
hospital real estate for 2
billion yen

February 2019

・Conducted the second public offering
・ Acquired 8 properties (22.7 billion yen)including hospital real estate

February 2022

・ Conducted the third public offering
・ Acquired 10 properties (11.4 billion yen)

(Number ofproperties)(billion yen)

65

<Target> 100

Asset size
60

100.0
(Note)

Number of properties

55

78.4

50
64.8

45

64.8

66.3

66.3

67.0

80

Pipeline

67.0
47

90

70
60

40
35

38.4

40.5

40.5

42.1

30
25
20
15

23.6
24

25

25

6th FP
Ended
January
2018

7th FP
Ended
July
2018

50
35

35

36

36

37

37
40
30

27

20

16
1st FP
Ended
July
2015

5th FP
Ended
July
2017

8th FP
Ended
January2019

9th FP
Ended
July
2019

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

10th FP
Ended
January
2020

11th FP
Ended
July
2020

12th FP
Ended
January2021

13th FP
Ended
July
2021

14th FP
Ended
January2022

Expected
figures on
March 31,
2022

10

21

Ⅳ Actions for Enhancement of Unitholder Value

2. Expansion of Pipeline①
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 corporations

22

Ⅳ Actions for Enhancement of Unitholder Value

2. Expansion of Pipeline②
The pipeline has accumulation of over 20 billion yen in total even after the public offering.
The states of pipeline accumulation

Case of pipeline

System to gather quality
deals and information
Facilities and housing
for the elderly(in operation)

Facilities andhousing for theelderly(to be developed)

Facilities and housing for the elderly(in operation)
Paid nursing home

Medicalservicerelated
facilities, etc.

Paid nursing home

SAWAYAKA Higashiosakakan(Higashiosaka-shi, Osaka; 94 rooms)
Paid nursing home

Nichii Home Inage(Chiba-shi, Chiba; 85 rooms)
Change of ownership of a paid nursing home.
Needs for property sale by a large company wereseized on time and the property is currently
owned by NEC Capital Solutions, a sponsor.

Total Pipeline over 20 billion yen(billion yen)
35

Facilities and housing for the elderly(to be developed)

Acquisition by HCM

Paid nursing home (to be developed)

Acquisition by SPC formed by a sponsor, etc

30

Pipeline totaling

625

Paid nursing home (to be developed)

-9.5

3

20
5.5

15

5

-1.5

3

10
5

SOMPO CARE Sompo no ie
Hachiojimotohongo(Hachioji, Tokyo; 85 rooms)

4
6

10

Charm Hanakoganei(Kodaira-shi, Tokyo; 66 rooms)
22

13

25

17

21.5

0
March 2019 September 2019 March 2020

September 2020

March 2021

September 2021

March 2022

Paid nursing home (to be developed)

Sunny Life Higashikurume(Higashikurume-shi, Tokyo; 119 rooms)
The acquisition was made by a bridge fundformed by RISA Partners, a support company, as
an exit for a property developed by a large
developer

Medical Rehabilitation Home
Granda Toyotamotomachi(Toyota-shi, Aichi; 75 rooms)(Note) In case a sponsor or an SPC formed by a sponsor, etc. decides to sell a healthcare facility they own, HCM has the first refusal rights to acquire the property. However, the acquisition is undecided and there is no guaranteethat HCM will acquire the property in the future. The above properties are some of healthcare facilities owned by sponsors or SPCs formed by sponsors, etc.

23

Ⅳ Actions for Enhancement of Unitholder Value

3. Actions for Hospital Projects
Investment & Management Policy1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

3

4

Opportunity of REIT Investment (Utilization)

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Market size is approximately 23 trillion yen (Note), and hospital real estate accounts 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 of strengthening medical
functions

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

Strengthen financial status, Diversification of financing methods, Cash flow management

Concentration of management resources on the main business, Outsourcing of real estatebusiness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

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

Name

SHIP Senri Building(Senri-Chuo Hospital)

Location

Toyonaka-shi, Osaka

Operators

Kyowakai Medical
Corporation

Number of beds 400

Large-scale multi-use healthcare facility, combining a hospital and apaid nursing home
 Developed and master leased in its entirety by a group company ofSHIP HEALTHCARE Senri Chuo Hospital, a major tenant, opened when the property
was completed (2008) as a hospital mainly responsible forsubacute and chronic care
 HCM acquired it by utilizing the warehousing functions of the24
sponsorPromotion for market expansion
 Participation in seminars for medical/nursing care facilitiesrelated operators
 Lectures at industry group meetings (Congress of Japan
Hospital Association, etc.)

Size of hospital real estate market

Ⅳ Actions for Enhancement of Unitholder Value

4. ESG Initiatives
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

Environment

Highly relevant SDGs

・ Green lease (Kobe Gakuentoshi Building)・ Energy conservation and reduction of CO2 emissions

・ 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 and Promotion of ｗomen’s empowerment

SocialSpecific Actions

・ Improvement of business efficiency and reduction ofwork burden for nursing care staff
・ Prevention of abuse of residents and harassment offacility staff

・ Renovation work for improving the efficiency of
air conditioning system using subsidies(GreenLife Moriguchi and Kobe Gakuentoshi Building)・ Procured funds through social finance (social loans andsocial bonds)
・ Issued Impact Reports that summarize endeavors
toward addressing social issues (every December)・ Supported the improvement of efficiency of nursing carebusiness of operators with the introduction of ICT system- Introduced EGAO link, a system for enhancing
efficiency of nursing care services (ASHEIM
Hikarigaoka and ASHEIM Bunkyohakusan)・ Employment support for people with disabilities(GreenLife Moriguchi)

・ Response to the deterioration of hospitals andpromotion of earthquake resistance and Promotion of・ Established a remote work system (Asset Management
hospital function conversion
Company)
・ Work-life balance, health of staff, etc.
・ Implemented countermeasures against the spread of
COVID-19・ Transparency in decision making

Governance・ Separation of Executive Director of HCM and CEO of theAsset Management Company (resolved at the general
meeting of unitholders in October 2020)

・ Fair transaction (Appropriate management of conflictsof interest)
・ Established warehousing rules for transactions withinterested parties
・ Management of various risks (including elimination ofantisocial forces)

・ Established a “Customer-Oriented Committee” at theAsset Management Company

25

Ⅳ Actions for Enhancement of Unitholder Value

4. ESG Initiatives ～ Environment ～Green Lease

Energy Saving Renovation WorkHCM introduced a green lease agreement with a tenantthat rent a whole building of “Kobe Gakuentoshi Building(Hapine Kobe Gakuentoshi)” (2021)
LED construction work

Healthcare & Medical
Investment Corporation

Property owner
Advantage：
Increase of rent income

Part of reduced electricity cost, etc.
Pay in addition to the rent

TenantAdvantage：
Reduction of electricity cost

Implemented high-efficiency renovation work for airconditioning equipment at "GreenLife Moriguchi“ (2018)

Replace the control board and compressor of the outdoor unit of thecommon area air conditioner with ones with high energy-saving
performance.
 Introduction of high-performance air conditioning management unit
(collective management of air conditioning in the building, scheduled
operation setting) Utilize national subsidy→ Investment amount 13.5 million yen（of which, the subsidy is 6.4 million yen)Control board

Light Bulb
Replacement Cost
23％

Cost reduction for
the tenant due tothe Green Lease
50％

Electricity Cost
77％
69％ Reductionof Electricity Cost

New
compressor

Green Lease Fee(Add to the rent)
26％

Electricity Cost
24％
Before the
Implementation

After theImplementation

Green lease：Win-win action in which property owner and tenant
work together to reduce environmental burdens such as energy
saving of real estate and improve the working environment, andboth sides can benefit from cost reductions, etc.

26

Ⅳ Actions for Enhancement of Unitholder Value

4. ESG Initiatives ～ Social ～Improving the Efficiency of Nursing Care Operations Using
ICT (EGAO link)

Investment to healthcare facilities
Contributed to developing and expanding healthcare facilities inJapan through continuous investment by serving as a conduit
between the nursing/medical industry and the capital market.

Introduced a system (EGAO link) that can respond to nurse
calls, create nursing care records and grasp the situation in
the resident's bed in real time on a smartphone. (2019)Social issues
Super-agedsociety＜Effect of Introducing EGAO Link at ASHEIM Bunkyohakusan＞

Increase in
The shortage of
Hospitals do notmeet the earthquake
supply ofElderly Single
Households healthcare facilities resistance standard

Reduction of care staff

Promote the supply of healthcare facilities associal infrastructureJuly 31, 2019

Sept. 30, 2021

Staff per month

26.9 people

23.0 people▲3.9 people

Total working hours

4,734 hours

4,048 hours▲686 hours

July 31, 2019

Sept. 30, 2021

20 hours

117 hours

Improving quality of nursing care services

We seek to realize a society where all people canlive vibrantly and with peace of mind

Individual activities

Social Finance

ESG Initiatives

Established a social finance framework to provide
investment opportunities for investors who have strong
interest in ESG investment.



Difference

Difference+97 hours

Issuance of Impact Report summarizing actions to solve
issues which the medical and nursing care industries arefacing (every December, on HP)

JCR Social Finance Framework Evaluation The highest evaluation
Social １(F)Period：10 years
Interest rate：0.78%

Socialbond

Date of issue：January 30, 2020
Amount of issue ：2 billion yen

Socialloan(about 84% of the loan balance)(As of January 31, 2022)

Social loan balance: 26.15 billion yen※ New loans after February 2019 are all social loans.

Social Finance refers to finance with bonds and loans “that raise funds for new and existing projects
with positive social outcomes” according to the “Social Bond Principles” of the International CapitalMarket Association (ICMA). Specifically, it is a financing approach where (i) The use of proceeds islimited to projects with a high degree of contribution to society, (ii) The proceeds are reliably
tracked and managed, and (iii) Transparency is secured through reporting after the issuance.

27

Ⅳ Actions for Enhancement of Unitholder Value

4. ESG Initiatives ～ Governance ～Decision-Making Flow Concerning Acquisition of Assets Under
Management

Basic Policy of Management
Implementation of customer-oriented business operation- HAM established the “Customer-Oriented Committee”.
 Strengthening autonomous compliance framework- Holding monthly compliance workshops.(More than 20
times a year)Proposal of acquisition plan by the Investment Department(Property due diligence by the Investment Department)
When the candidate
asset undermanagement to beacquired is ahealthcare facility or
hospital real estate

Appropriate Management of Conflicts of Interest


Related party is defined in broader terms than interested
party, etc. under the Investment Trust Law, and establisheda system to carry out transactions after conducting rigorous
examinations.
interested party, etc.
under theInvestment Trust Law

Preparation of evaluation reports andsubmission to the Investment
Department by the Healthcare
Business Promotion Department orby external experts (if necessary)

When thetransaction falls
under the categoryof related-party
transactions, or if
the Compliance
Officer judges that itis necessary toconsider the legal
compliance issues
concerning the
proposed income
plan.

related party

Acquisition fee for property acquisition from related party
and Disposition fee for property disposition to related party

Deliberation and resolution of theexistence or non-existence of legal
compliance issues by the Compliance
Committee

Separation of Executive Director of HCM and CEO of the AssetManagement Company

From November 1, 2020, the system in which CEO of asset
management company concurrently serves as executive
director of HCM was dissolved.
Investment corporation

asset

managementcompany

Yuji Fujise

Instruction
s forcancellationor changeof content

The Investment Department presents the proposed
acquisition plan to the Management Committee

Deliberation and resolution at the Management Committee(The Compliance Officer may order the suspension of deliberation
and resolution by the Management Committee when it is judged that
there are issues such as legal violation in the procedures ofproceedings and the content of deliberation.)

Reporting to the Board of Directors and HCM

Appropriate
check and balance
Executive Director

Instructions
forcancellationor change ofcontent

Approval by Compliance Officer
Confirmation of existence or non-existence of issues on legal
compliance and other compliance (hereinafter, "legal
compliance issues")

Acquisition or Disposition price×0.5%（usually 1.0%）is upper limitWhen thecandidate asset
undermanagement
to be acquired
is a property
other thanhealthcare
facility or
hospital realestateCEO

Seiji Yoshioka(However, if the proposed acquisition plan falls under the
category of transaction with interested party, etc. that
requires approval of HCM's Board of Directors based on theInvestment Trust Act, prior approval of the HCM's Board of
Directors shall be obtained.)28

Appendix①Ⅴ
29

Ⅴ Appendix①

The assets acquired/to be acquired through the public offering
SOMPO CARE La vie Re Kobe-ikawadani Paid nursing homes

SOMPO CARE Sompo no ie Sayama

Paid nursing homes

Ikawadani Station

Ikawadani JCT

SOMPO CARE
Sompo no ie Sayama

Kobe Gakuin Universit

Akashi ParkSOMPO CARE La vie Re
Kobe-ikawadani

Sayama Station

Okuradani IC Exit

Osaka Sayama City Hall

Akashi Station on the JR kobe Line The property is a paid nursing home with care service opened in July 2009. It isreachable by bus from JR Akashi Station and Ikawadani Station on the Kobe
Municipal Subway, and is located on a hill overlooking the Akashi Kaikyo Bridge, in
proximity to the Arise Campus of Kobe Gakuin University. The ratio of nursing staff
to residents is 2.5 to 1, exceeding the standard ratio, and extensive nursing careservices for those requiring intensive nursing care are provided.

 It is also equipped with many shared facilities, including a dining/functional training

room and private bath on each floor.

 The property is a paid nursing home with care service opened in October 2005 andis located approximately a 5-minute walk from Sayama Station on the Nankai Koya
Line. Taimaike Pond spreads out to the south of the property, and the surroundingarea is a residential area with a calm atmosphere with abundant greenery.

 The size of the room, which is about 25 ㎡, as well as the specifications of eachroom being fully equipped with a bathroom, kitchen and toilet strongly appeal tothose who emphasize privacy and thus demonstrate competitiveness.

(Planned) Acquisition dateFebruary 1, 2022

(Planned) Acquisition dateFebruary 1, 2022

(Planned) Acquisition price

1,288 million yen(Planned) Acquisition price

600 million yen

Appraisal value

1,300 million yen

Appraisal value

646 million yen

Appraisal NOI yield

4.9%

Appraisal NOI yield

5.4%

Location

Kobe-shi,Hyogo

Location

Sakai-shi,Osaka

Leasable area/Site area

3,824.54㎡/3,606.00㎡

Leasable area/Site area

1,997.87㎡/2,263.33㎡

Structure/number of floors

RC・S, 4F

Structure/number of floors

S, 3F

Number ofrooms/resident capacity

80 rooms, 80 people

Number ofrooms/resident capacity

50 rooms, 50 people

Construction completion

April 2009 (New construction)
December 2015 (Expansion)

Construction completion

August 2005

occupancy rate

83.8％

occupancy rate

92.0％

Operator

Sompo Care Inc.

Operator

Sompo Care Inc.

30

Ⅴ Appendix①

The assets acquired/to be acquired through the public offering
Granda Minamiurawa

Paid nursing homes

Madoka Minamiurawa

Paid nursing homes

Minamiurawa Station

Minamiurawa Station

Granda Minamiurawa

Madoka Minamiurawa

Gaikanurawa IC Exit

Gaikanurawa IC Exit The property is a paid nursing home with care service opened in August 2011. It is

located a 14-minute walk from JR Minami-Urawa Station, and the surrounding is aquiet residential area with many detached homes and a public housing complex. It isadjacent to Madoka Minami-Urawa, also operated by Benesse Style Care.

 The Granda series is developed under the concept of a rich and colorful life in a

 The property is a paid nursing home with care service opened in May 2005. It is

located a 14-minute walk from JR Minami-Urawa Station, and the surrounding is aquiet residential area with many single family homes and a public housing complex.
It is adjacent to Granda Minami-Urawa, also operated by Benesse Style Care.

 The Madoka series is developed under the concept of emphasizing interaction withhome full of character, and provides nursing care services that suit the care plan ofeach resident.

many people including other residents and their families, and provides group careservices in groups of around 20 people.

(Planned) Acquisition date

March 30, 2022

(Planned) Acquisition date

March 30, 2022

(Planned) Acquisition price

1,022 million yen(Planned) Acquisition price

822 million yen

Appraisal value

1,100 million yen

Appraisal value

883 million yen

Appraisal NOI yield

4.8%

Appraisal NOI yield

4.8%

Location

Kawaguchi-shi, Saitama

Location

Kawaguchi-shi, Saitama

Leasable area/Site area

2,373.25㎡/2,620.05㎡

Leasable area/Site area

1,918.98㎡/2,620.05㎡

Structure/number of floors

S, 3F

Structure/number of floors

S, 3F

Number ofrooms/resident capacity

58 rooms, 60 people

Number ofrooms/resident capacity

54 rooms, 54 people

Construction completion

July 2011

Construction completion

April 2005

occupancy rate

90.0％

occupancy rate

98.1％

Operator

Benesse Style Care Co., Ltd

Operator

Benesse Style Care Co., Ltd

31

Ⅴ Appendix①

The assets acquired/to be acquired through the public offering
Royal Kawaguchi

Paid nursing homes

Heartland Kawaguchi Meiseien

Paid nursing homes
Hatogaya Station
Kawaguchi City
High School

SKIP CITYHeartland
Kawaguchi Meiseien

Royal Kawaguchi
Kawaguchi City Hall

Kawaguchi City Hall
Kawaguchi Station

 The property is a paid nursing home with care service opened in April 2010, and hasa jointly established day service facility and clinic. It is located an 18-minute walkfrom JR Kawaguchi Station and the surrounding offers a relatively quiet residential
environment with many low-rise buildings.

 An extensive nursing care system, such as unit care, a 2-to-1 ratio of care staff and

Kawaguchi Station

 The property is a paid nursing home with care service opened in February 2006, andhas a jointly established day service facility. It is located approximately 1.6 km from
Hatogaya Station on the Saitama Railway and stands in a quiet residential area near
the center of Kawaguchi City.

 It has wide appeal for both those requiring assistance and nursing care due to theresidents, and provision of nursing care prevention services through concierges, hasbeen established. The tangible aspect of the property is also fulfilling as there areseven bathing facilities, a rooftop garden with a view and such.

peace of mind concerning medical needs it offers through operation by a medical
corporation group and strong collaboration with its hospitals as well as a full lineupof rehabilitation and recreation programs. Combined with reasonable fees, it has
maintained a high occupancy rate.

(Planned) Acquisition dateFebruary 1, 2022

(Planned) Acquisition date

March 30, 2022

(Planned) Acquisition price

1,260 million yen(Planned) Acquisition price

2,000 million yen

Appraisal value

1,310 million yen

Appraisal value

2,110 million yen

Appraisal NOI yield

4.9%

Appraisal NOI yield

5.0%

Location

Kawaguchi-shi, Saitama

Location

Kawaguchi-shi, Saitama

Leasable area/Site area

3,484.02㎡/2,294.91㎡

Leasable area/Site area

3,885.90㎡/1,996.66㎡

Structure/number of floors

RC, 3F

Structure/number of floors

RC, 6F

Number ofrooms/resident capacity

56 rooms, 56 people

Number ofrooms/resident capacity

97 rooms, 100 people

Construction completion

October 2008

Construction completion

January 2006

occupancy rate

89.3％

occupancy rate

98.0％

Operator

SENIOR LIFE SUPPORT Co.,Ltd

Operator

MEISHO.Co.,Ltd32

Ⅴ Appendix①

The assets acquired/to be acquired through the public offering
NOAH GARDEN LEGEND

Paid nursing homes

NOAH GARDEN L Grace

Paid nursing homes
Sapporo Station

Sapporo Station

Odori Park

Odori Park

Sapporo Dome

Sapporo Dome

Kitahiroshima IC Exit

Kitahiroshima IC Exit

NOAH GARDEN L Grace

NOAH GARDEN LEGEND The property is a residential-type paid nursing home opened in November 2015. It

 The property is a residential-type paid nursing home opened in November 2017. It

It has a white-themed western-style exterior, and the inside also renders a highgrade atmosphere and has a large bath with a natural hot spring. A periodic or oncall home-visit nursing care office is jointly established to provide around-the-clockcare and nursing care to residents.

 It has a white-themed western-style exterior, and the inside also renders a high-is situated along the arterial road approximately three minutes from the
Kitahiroshima Interchange on the Do-O Expressway, forming “Noah Garden
Utsukushigaoka” (238 rooms in total) along with “NOAH GARDEN L Grace” and“NOAH GARDEN CASA RICH.”is situated along the arterial road approximately three minutes from the
Kitahiroshima Interchange on the Do-O Expressway, forming “Noah Garden
Utsukushigaoka” (238 rooms in total) along with “NOAH GARDEN LEGEND” and“NOAH GARDEN CASA RICH.”

grade atmosphere and has a large bath with natural hot spring. A periodic or on-callhome-visit nursing care office is jointly established to provide around-the-clock careand nursing care to residents.

(Planned) Acquisition dateFebruary 1, 2022

(Planned) Acquisition dateFebruary 1, 2022

(Planned) Acquisition price859 million yen(Planned) Acquisition price

622 million yen

Appraisal value

910 million yen

Appraisal value

660 million yen

Appraisal NOI yield

5.6%

Appraisal NOI yield

5.6%

Location

Sapporo-shi, Hokkaido

Location

Sapporo-shi, Hokkaido

Leasable area/Site area

2,736.89㎡/9,012.28㎡

Leasable area/Site area

2,075.25㎡/9,012.28㎡Structure/number of floors

RC, 4F

Structure/number of floors

RC, 4F

Number ofrooms/resident capacity

72 rooms, 72 people

Number ofrooms/resident capacity

51 rooms, 51 people

Construction completion

October 2015

Construction completion

October 2017

occupancy rate

81.9％

occupancy rate

92.2％

Operator

NOAH KONZER Co.,Ltd

Operator

NOAH KONZER Co.,Ltd33

Ⅴ Appendix①

The assets acquired/to be acquired through the public offering
NOAH GARDEN CASA RICH

Serviced housing for the elderly

NOAH GARDEN Season Bell

Paid nursing homes
Sapporo Station

Sapporo Station

Odori Park

Odori Park

Ohyachi IC Exit

Fukuzumi Station
Sapporo Dome

Sapporo Dome

Sapporominami IC Exit

NOAH GARDEN LEGEND

Kitahiroshima IC Exit

NOAH GARDEN CASA RICH

 The property is a serviced housing for the elderly opened in April 2015 (the building

was extended in November 2016 to open “Second Court”). It is situated along thearterial road approximately three minutes from the Kitahiroshima Interchange on
the Do-O Expressway, forming “Noah Garden Utsukushigaoka” (238 rooms in total)along with “NOAH GARDEN LEGEND” and “NOAH GARDEN L Grace.” It has a white-themed western-style exterior, and the inside also renders a high-grade atmosphere and has a large bath with natural hot spring. A periodic or on-callhome-visit long-term care and nursing care office and a day service facility are
jointly established to provide around-the-clock care and nursing care to residents.

 The property is a residential-type paid nursing home opened in January 2020, andhas a jointly established periodic or on-call home-visit long-term care and nursing
care office and a day service facility. It is situated along the arterial road, anapproximately 15-minute walk from Fukuzumi Station on the Sapporo City Subway,
and there are many facilities for daily living such as supermarkets and clinics aroundthe station.

 While the fees are set reasonably, the building is relatively new with all rooms being

for private use and is also equipped with ample facilities such as a karaoke room inthe common area and a large bath with a natural hot spring.

(Planned) Acquisition dateFebruary 1, 2022

(Planned) Acquisition date

March 30, 2022

(Planned) Acquisition price

1,619 million yen(Planned) Acquisition price1,350 million yen

Appraisal value

1,730 million yen

Appraisal value

1,520 million yen

Appraisal NOI yield

5.6%

Appraisal NOI yield

5.8%

Location

Sapporo-shi, Hokkaido

Location

Sapporo-shi, Hokkaido

Leasable area/Site area

4,986.98㎡/9,012.28㎡

Leasable area/Site area

4,602.26㎡/3,636.38㎡

Structure/number of floors

RC, CASA RICH:4F (Second Court:5F)

Structure/number of floors

RC, 5F

Number ofrooms/resident capacity

115 rooms, 115 people

Number ofrooms/resident capacity

136 rooms, 136 people

Construction completion

CASA RICH:March 2015
(Second Court:October 2016(Expansion))

Construction completion

December 2019occupancy rate

85.2％

occupancy rate

66.2％

Operator

NOAH KONZER Co.,Ltd

Operator

NOAH KONZER Co.,Ltd34

Ⅴ Appendix①

The medical / nursing market in Sapporo City, Hokkaido
The demand for medical/nursing care in the Sapporo medical service area is projected toremain above the national average, and development of housing for the elderly is moreadvanced than in other cities outside Hokkaido.
Medical/nursing care demand projection index in the Sapporo
medical service area

The satisfaction of Housing for the Elderly
Resident capacity per 1,000 people
aged 75 and over200

（2015 results =100）

180
160

120
100

119
108

100
2015
2015年

2020
2020年

121

119

115
2025
2025年

2030
2030年

National
国勢
census

169

165

160

144

140

172

121

2035
2035年

120

2040
2040年

2045
2045年

予測
Forecast

調査

Medical : Sapporo
medical service area
医療：札幌医療圏
Nursing : Sapporo
medical service area
介護：札幌医療圏

医療：全国平均
Medical : National average
Nursing : National average
介護：全国平均（Source）Website of Japan Medical Association’s Japan Medical Analysis Platform（Thousand people）

265

274

251

2,000

571

613

671

236

221

541

199

489

463

1,500

0

833

346

319

293

312

344

343

491

501

512

2035
2035年

2040
2040年

2045
2045年

278

338

423

2015
2015年
National
国勢調査
census

2020
2020年

2025
2025年

2030
2030年

65歳～74歳

65 to 74 years old

40～64歳

40 to 64 years old

15～39歳

15 to 39 years old

0～14歳

0 to 14 years old（Source）Website of Japan Medical Association’s Japan Medical Analysis Platform⑤Total(③+④)

75 years old
and over117.2

19,918

5,092

25,01031,651

56,661

483,533

73.1

141.2

17,648

8,577

26,22524,42450,649358,607

Nagoya

69.7

133.3

16,494

4,326

20,82019,014

39,834

298,893

Sapporo

113.0

174.8

16,862

12,911

29,773

16,29446,067

263,593

Fukuoka

88.9

157.3

11,375

3,271

14,646

11,26625,912

164,686

Kobe

55.5

122.8

7,884

4,484

12,36815,001

27,369222,932

Kawasaki

83.8

146.3

10,923

1,944

12,867

9,581

22,448

153,471

Kyoto

39.0

109.0

3,910

4,262

8,172

14,69522,867

209,717

Saitama

81.7

148.6

9,074

3,673

12,747

10,44023,187156,008

Hiroshima

43.8

117.6

3,603

3,100

6,703

11,31118,014

153,197

Sendai

52.8

130.8

4,796

1,903

6,699

9,902

16,601

126,953

Hokkaido

68.3

143.8

36,51321,50058,01364,118122,131

849,096

Nationwide

46.2

114.3

576,116

270,244846,360

1,247,187

2,093,547

18,315,718

Share of serviced housing for the elderly in Hokkaido(Top 10 companies)

1,297

16
860

12

ミサワホーム北海道株式会社
MISAWA HOMESHOKKAIDO CO.LTD

717

16

KagayakiCo., Ltd.
株式会社輝

634

12

565

6

Life Design Co., Ltd.
株式会社ライフデザイン

464

4Blue Care Co.,Ltd.
ブルー・ケア株式会社

458

4

Kinikyofukushikai social
welfare corporation
社会福祉法人勤医協福祉会

346

9

Sapporo Welfareさっぽろ高齢者福祉生活協同組合
life for the elderly cooperative

337

2

MEDICAL SYSTEM NETWORK Co., Ltd.
株式会社メディカルシステムネットワーク

336

4
0

予測
Forecast

75歳以上

75 years old and over

615

307

476

④Other facilities
for the elderly

51.7

Ryo-wa Co., Ltd.
株式会社リョーワ

675

750

799

826

826

③Total
(①+②)

Osaka

HITOWA
Care Service Co., Ltd.
HITOWAケアサービス株式会社

210

518

②Serviced
housing for theelderly

Yokohama

NOAH
KONZER Co.,Ltd
株式会社ノアコンツェル

2,500

500

①Paid
nursinghomes

Facilities for the
Elderly(Note)The resident capacity of paid nursing homes in “Sufficiency status of housing for the elderly” is preparedbased on the data published by each municipality. The resident capacity of serviced housing for the elderly
is prepared based on the data registered in the “information provision system for residence for elderly
people with service” as of September 30, 2021.

Population Projection for the Sapporo medical service area

1,000

Housing for the
Elderly

City

Population(Unit : People)

Resident capacity

200

400

600

800

1,000

1,200

住宅戸数（単位：戸）
施設数（単位：施設）
Number of units
Number of housing(Unit: units)(Unit: facilities)（Source）Website of Information provision system for residence for elderly people with service(as of September 30, 2021)

35

1,400

35

Appendix②

Ⅵ
36

Ⅵ Appendix②

Portfolio Map
Ratio of investment inthree major
metropolitan areas

Strategic
investment inthree major
metropolitan
areas

41.6%

Chubu area

Other areas

1.9%

2 19 1

16

11.0%

1
1 18

Tokyo metropolitan area

1

43.0%

22

2.6%

30

29

13

9

12
5
6

21

7
3

11

Bonsejour Chitose-funabashi

3

Bonsejour Hino

4

Bonsejour Musashi-shinjo

6Core cities

17

AQUAMARINE Nishinomiyahama

5

86.5%

Kinki area

1
2

20

24

8

33

31
14

2
10

15

4
27 26 25
23

28
32
Serviced housing for theelderly
Medical service-related
facilities, etc.
Complex of paid nursing
homes, medical servicerelated facilities, etc.

1

SOMPO CARE Sompo no ie
Awajiekimae

2

SOMPO CARE Sompo no ie
Kobekamisawa

1

Niigata Rehabilitation Hospital

1

SHIP SENRI BUILDING

Paid nursing
home

Medical Rehabilitation Home Bonsejour
Hadanoshibusawa
Medical Rehabilitation Home Bonsejour
Komaki7

ASHEIM Hikarigaoka

8

ASHEIM Bunkyohakusan

9

SOMPO CARE La vie Re Machidaonoji

10

SOMPO CARE La vie Re Azamino

11
12

SAWAYAKA Tachibanakan

12

SAWAYAKA Mekarikan

13

SAWAYAKA Tagawakan

14

GOOD TIME HOME Fudo-mae

15Bonsejour Yotsugi

16

Medical Home Bonsejour Itami

17

Kobe Gakuentoshi Building (Hapine Kobe
Gakuentoshi)

18

GreenLife Moriguchi

19

Hapine Kobe Uozaki Nibankan

20Granda Tsuruma-Yamato

21

Smiling Home Medice Adachi

22

Aikoen Ichibankan Building (Aikoen
Ichibankan)

23

Hanakotoba Minami

24

Hanakotoba Miura

25

SOMPO CARE La vie Re Hama-Kawasaki

26

Hanakotoba Shin-Yokohama

27

Hanakotoba Shin-Yokohama II

28

Hanakotoba Odawara

29

Verde Minowa

30

Verde Hotaka

31

Sunny Life Kita-Shinagawa

32

Sunny Life Kamakura

33 Nichii Home Nishikokubunji

37

Ⅵ Appendix②

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％

6.4％

Appraisal value (Note 1)

2,100 million yen

974 million yen

818 million yen

643 million yen

850 million yen

Acquisition price (ratio)

1,950 million yen (2.9%)824 million yen (1.2%)

724 million yen (1.1%)

582 million yen (0.9%)728 million yen (1.1%)

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％

93.1％

89.8%

96.0％

Operator

GREEN LIFE

Benesse Style Care

Benesse Style Care

Benesse Style Care

Benesse Style Care

Remaining years of leaseagreement (Note 4)

15.3 years

4.3 years

4.3 years

4.8 years

5.3 years

38

Ⅵ Appendix②

Details of Portfolio②
Paid nursing home

)

10

6

7

8

9

Medical Rehabilitation Home
Bonsejour Komaki

ASHEIM Hikarigaoka

ASHEIM Bunkyohakusan

SOMPO CARE La vie Re
Machidaonoji

SOMPO CARE La vie Re
AzaminoLocation

3-1 Shiroyama,
Komaki-shi, Aichi

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

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

19-24 Ayumigaoka, Tsuzuki-ku,
Yokohama-shi, Kanagawa

Nearest station

Ajioka Stationon the Meitetsu Komaki Line

Shakujii-Koen Stationon the Seibu Ikebukuro Line

Hakusan Stationon the Toei Subway Mita Line1612 Onojimachi,
Machida-shi, Tokyo
Keio Nagayama
OdakyuStation
Nagayama
on the Keio
Station
Sagamiharaon the Odakyu
Line
Tama Line

Construction completion

March 1991

March 2006

February 2007

October 2007

March 2004

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)

92 million yen

76 million yen

74 million yen

193 million yen

156 million yen

Appraisal NOI yield (Note 1)

7.3％

5.5％

5.1％

5.3％

5.1％

Appraisal value (Note 1)

1,450 million yen

1,520 million yen

1,680 million yen

3,940 million yen

3,300 million yen

Acquisition price (ratio)

1,270 million yen (1.9%)

1,385 million yen (2.1%)

1,430 million yen (2.1%)

3,580 million yen (5.3%)

3,050 million yen (4.5%)

Site area

8,229.85 m²

2,868.46 m²

540.29 m²

7,404.13 m²

2,748.64 m²

Leasable area

8,858.49 m²

3,628.60 m²

2,507.25 m²

7,720.17 m²

5,789.25 m²

Structure/
number of floors (Note 2)

SRC RC S, 10F

RC, 3FRC, 8F

RC, B1 6F

RC, B1 5F

Number ofrooms/resident capacity

124 rooms, 165 people

83 rooms, 89 people

50 rooms, 52 people

163 rooms, 169 people

145 rooms, 145 people

occupancy rate (Note 3)

79.4％

92.1％

82.7％

67.5％

99.3％

Operator

Benesse Style Care

AS PARTNERS

AS PARTNERS

Sompo Care

Sompo Care

Remaining years of leaseagreement (Note 4)

5.3 years

12.1 years

5.1 years

5.7 years

5.4 years

Nakagawa Stationon the Yokohama Municipal
Subway Blue Line39

Ⅵ Appendix②

Details of Portfolio③
Paid nursing home

15

11

12

13

14

SAWAYAKA Tachibanakan

SAWAYAKA Mekarikan

SAWAYAKA Tagawakan

GOOD TIME HOME Fudo-mae

Bonsejour Yotsugi

173-15 Oaza Ryugeji,Hakata-ku, Fukuoka-shi, Fukuoka
Sasahara Stationon the JR Kagoshima HonsenLine

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 OshiageLineConstruction completion

October 2005

November 2005

January 2006

March 1992

March 1989

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 2016

Appraisal NOI (Note 1)

93 million yen

85 million yen

25 million yen

91 million yen

48 million yen

Appraisal NOI yield (Note 1)

6.1％

6.2％

6.4％

5.2％

5.8％

Appraisal value (Note 1)

1,550 million yen

1,430 million yen

383 million yen

1,990 million yen

886 million yen

Acquisition price (ratio)

1,520 million yen (2.3％)

1,380 million yen (2.1％)

390 million yen (0.6％)

1,740 million yen (2.6%)

824 million yen (1.2%)

Site area

3,359.66 m²

3,758.26 m²

4,300.90 m²

1,206.60 m²

1,136.46 m²

Leasable area

5,652.94 m²

4,720.46 m²

2,366.20 m²

3,400.20 m²

1,962.89 m²

Structure/
number of floors (Note 2)

RC, B1 6FRC, 4FRC, 3F

RC, B1 5F

RC, 5F

Number ofrooms/resident capacity

104 rooms, 104 people

95 rooms, 95 people

60 rooms, 60 people

61 rooms, 67 people

61 rooms, 65 people

occupancy rate (Note 3)

100.0％

84.2％

100.0％

86.6％

86.2％

Operator

Sawayaka Club

Sawayaka Club

Sawayaka ClubJAPAN LIFEDESIGN

Benesse Style Care

Remaining years of leaseagreement (Note 4)

6.0 years

6.0 years

6.0 years

4.8 years

3.9 years

Location
Nearest station

Fudo-mae Stationon the Tokyu Meguro Line40

Ⅵ Appendix②

Details of Portfolio④
Paid nursing home

20

16

17

18

19

Medical Home Bonsejour Itami

Kobe Gakuentoshi Building(Hapine Kobe Gakuentoshi)

GreenLife Moriguchi

Hapine Kobe Uozaki Nibankan

Location

1-2-25 Chuo,
Itami-shi, Hyogo

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

Nearest station

Hankyu Itami Stationon the Hankyu Railway Itami
Line

Gakuentoshi Stationon the Kobe Municipal Subway
Seishin-Yamate Line

Construction completion

March 1989

January 2009

September 2006

March 2010

March 1998

Acquisition period

Fiscal period ended July 2016

Fiscal period ended July 2017

Fiscal period ended July 2017

Fiscal period ended July 2017

Fiscal period ended July 2017

Appraisal NOI (Note 1)

36 million yen

227 million yen

220 million yen

48 million yen

53 million yen

Appraisal NOI yield (Note 1)

7.1％

5.2％

5.3％

5.2％

5.3％

Appraisal value (Note 1)

557 million yen

4,540 million yen

4,500 million yen

995 million yen

1,060 million yen

Acquisition price (ratio)

514 million yen (0.8%)

4,320 million yen (6.4%)

4,150 million yen (6.2%)

930 million yen (1.4%)

1,000 million yen (1.5%)

Site area

1,976.11 m²

2,742.81 m²

5,872.83 m²

932.94 m²

2,877.11 m²

Leasable area

2,129.87 m²

12,636.48 m²

8,356.85 m²

1,772.89 m²

3,427.08 m²

Structure/
number of floors (Note 2)

SRC, 11F (Exclusive portion)

RC, B1 9F

S RC, 9F

S, B1 4F

RC S, 5F

Number ofrooms/resident capacity

62 rooms, 64 people

131 rooms, 138 people

155 rooms, 189 people

47 rooms, 47 people

73 rooms, 90 people

occupancy rate (Note 3)

82.8％

97.8％

100.0％

100.0％

74.4％

Operator

Benesse Style Care

GREEN LIFE

GREEN LIFE

GREEN LIFE

Benesse Style Care

Remaining years of leaseagreement (Note 4)

5.3 years

19.1 years

17.7 years

19.1 years

2.1 years

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
MonorailGranda Tsuruma-Yamato

2-3-41 Shimotsuruma,
Yamato-shi, Kanagawa
Tsuruma Stationon the Odakyu Enoshima Line41

Ⅵ Appendix②

Details of Portfolio⑤
Paid nursing home

25

21

22

23

24

Smiling Home Medice Adachi

Aikoen Ichibankan Building(Aikoen Ichibankan)

Hanakotoba Minami

Hanakotoba Miura

SOMPO CARE La vie Re HamaKawasaki

Location

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

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

3-5 Suwacho,
Miura-shi, Kanagawa

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

Nearest station

Rokucho Stationon the Tsukuba Express

Niigata Stationon the JR Shinetsu Main Line

Misakiguchi Stationon the Keikyu Kurihama Line

Odasakae Stationon the JR Nambu Line

Construction completion

November 2005

February 2010

June 2007

March 2007

Acquisition period

Fiscal period ended July 2017

Fiscal period ended July 2017

Appraisal NOI (Note 1)

120 million yen

45 million yen

56 million yen

35 million yen

89 million yen

Appraisal NOI yield (Note 1)

5.3％

5.8％

5.2％

5.6％

5.2％

Appraisal value (Note 1)

2,500 million yen

860 million yen

1,240 million yen

668 million yen

1,810 million yen

Acquisition price (ratio)

2,253 million yen (3.4%)

770 million yen (1.1%)

1,071 million yen (1.6%)

615 million yen (0.9%)

1,710 million yen (2.6%)

Site area

2,069.41 m²

2,597.52 m²

428.76 m²

1,017.55 m²

2,832.33 m²

Leasable area

3,870.98 m²

4,311.20 m²

1,710.68 m²

1,959.64 m²

4,060.21 m²

Structure/
number of floors (Note 2)

RC, 4F

S, 5F

RC, 7FRC, 4FRC, 4F (exclusively-owned
portion)Number ofrooms/resident capacity

82 rooms, 82 people

90 rooms, 90 people

51 rooms, 51 people

53 rooms, 54 people

58 rooms, 58 people

occupancy rate (Note 3)

91.5％

91.1％

90.2％

96.3％

89.7％

Operator

GREEN LIFE HIGASHI NIHON
Co., Ltd.

Medical Corporation AIKOKAI

Proud Life Inc.

Proud Life Inc.

Sompo Care

Remaining years of leaseagreement (Note 4)

15.0 years

14.5 years

10.8 years

10.8 years

5.9 years

2-4-38 Shinkawacho,
Minami-ku, Yokohama-shi,
Kanagawa
Yoshinocho Stationon the Yokohama Municipal
Subway Blue Line
February 2010

Fiscal period ended January 2019 Fiscal period ended January 2019

Fiscal period ended July 201942

Ⅵ Appendix②

Details of Portfolio⑥
Paid nursing home

26

27

28

29

Hanakotoba Shin-Yokohama

Hanakotoba
Shin-Yokohama II

Hanakotoba Odawara

Verde Minowa

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

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

Construction completion

March 2004

Acquisition period

Location

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

30
Verde Hotaka

839-4 Azamachiyabo, Kamishiba,
1221 Azamaebara,
Misatomachi, Takasaki-shi,
Oazanamashina, Kawaba-mura,
Gunma
Tone-gun, Gunma
Numata Stationon the JR Joetsu Line

Kamonomiya Stationon the JR Tokaido Line

Takasaki Stationon the JR Takasaki Line

April 2007

September 2009

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

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

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)

109 million yen

21 million yen

49 million yen

109 million yen

91 million yen

Appraisal NOI yield (Note 1)

5.2％

5.8％

5.6％

6.7％

6.9％

Appraisal value (Note 1)

2,330 million yen

383 million yen

947 million yen

1,700 million yen

1,430 million yen

Acquisition price (ratio)

2,071 million yen (3.1%)

375 million yen (0.6%)880 million yen (1.3%)

1,620 million yen (2.4%)

1,328 million yen (2.0%)

Site area

894.00 m²

375.00 m²

1,202.12 m²

７,920.29 m2

4,375.31 m²

Leasable area

5,230.23 m²

1,837.29 m²

2,203.42 m²

11,098.17 m²

6,352.86 m²

Structure/
number of floors (Note 2)

RC, 9F

RC, B1 7FRC, 4F

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

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

Number ofrooms/resident capacity

136 rooms, 136 people

29 rooms, 30 people

60 rooms, 65 people

174 rooms, 206 people

121 rooms, 174 people

occupancy rate (Note 3)

86.8％

96.7％

96.9％

93.7%

100.0％

Operator

Proud Life Inc.

Proud Life Inc.

Proud Life Inc.

Verde Corporation

Verde Corporation

Remaining years of leaseagreement (Note 4)

10.8 years

10.8 years

10.8 years

5.3 years

5.3 years

Nearest station

43

Ⅵ Appendix②

Details of Portfolio⑦
Serviced housing for the elderly

Paid nursing home

31

32

33

1
SOMPO CARE Sompo no ie
Awajiekimae

２
SOMPO CARE Sompo no ie
Kobekamisawa

Sunny Life Kita-Shinagawa

Sunny Life Kamakura

Nichii Home Nishikokubunji

Location

3-8-6 Kitashinagawa, Shinagawaku, Tokyo

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

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

Nearest station

Shimbamba Stationon the Keikyu Line

Shonan-Machiya Stationon the Shonan Monorail

Nishikokubunji Stationon the JR Chuo Line

Construction completion

September 2018

September 2014

September 1990

June 2009

June 2009

Acquisition period

Fiscal period ended July 2019

Fiscal period ended July 2020

Fiscal period ended July 2021

Fiscal period ended July 2015

Fiscal period ended July 2015

Appraisal NOI (Note 1)

90 million yen

76 million yen

36 million yen

116 million yen

72 million yen

Appraisal NOI yield (Note 1)

4.9％

5.3％

5.0％

6.0％

6.0％

Appraisal value (Note 1)

2,040 million yen

1,580 million yen

761 million yen

2,210 million yen

1,360 million yen

Acquisition price (ratio)

1,825 million yen (2.7%)

1,418 million yen (2.1%)

720 million yen（1.1％）

1,930 million yen (2.9%)

1,200 million yen (1.8%)

Site area

1,105.12 m²

2,055.67 m2

1,948.41 ㎡

1,251.26 m²

743.22 m²

Leasable area

2,135.54 m²

3,817.91 m2

1,559.99 ㎡

5,745.15 m²

4,058.35 m²

Structure/
number of floors (Note 2)

S, 3F

S, 5F

S, 3F

RC, 12F

S, 9F

Number ofrooms/resident capacity

66 rooms, 66 people

128 rooms, 128 people

46 rooms, 46 people

137rooms, 137 people

85 rooms, 85 people

occupancy rate (Note 3)

89.4％

96.1％

97.8％

86.9％

80.0%

Operator

Kawashima Corporation

Kawashima Corporation

Nichii Carepalace

Sompo Care

Sompo Care

Remaining years of leaseagreement (Note 4)

21.7 years

17.7 years

1.1 years

12.5 years

12.5 years

3-20-26 Awaji,
8-2-5 Kamisawadori, Hyogo-ku,
Higashiyodogawa-ku,
Kobe-shi, Hyogo
Osaka-shi, Osaka
Kamisawa Station
Awaji Stationon the Hankyu Railway Kyoto and on the Kobe Municipal Subway
Senri Lines
Seishin-Yamate Line44

Ⅵ Appendix②

Details of Portfolio⑧
Medical service-related facilities, etc.

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

1

1
Niigata Rehabilitation Hospital

SHIP SENRI BUILDING

Location

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

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

Nearest station

Hayadori Stationon the JR Hakushin Line

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

Construction completion

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

September 2008

Acquisition period

Fiscal period ended January 2018

Fiscal period ended July 2019

Appraisal NOI (Note 1)

153 million yen

679 million yen

Appraisal NOI yield (Note 1)

7.4％

5.2％

Appraisal value (Note 1)

2,300 million yen

14,200 million yen

Acquisition price (ratio)

2,060 million yen (3.1%)

12,920 million yen (19.3%)

Site area

15,056.85 m²

4,202.65 m²

Leasable area

13,476.55 m²

24,813.85 m²

Structure/
number of floors (Note 2)

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

RC, B1 11F

Number ofrooms/resident capacity

168 beds

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

occupancy rate (Note 3)-

Paid nursing home: 100 %Operator

Medical Corporation AIKOKAI

Kyowakai Medical Corporation
GREEN LIFE

Remaining years of leaseagreement (Note 4)

25.5 years

16.7 years(Note 1) Figures in Appraisal NOI, Appraisal NOI yield and Appraisal Value are as of January 31, 2022. 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 the latest
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, 2022, rounded down to the first decimal place.

45

Ⅵ Appendix②

Operator List①
Operator nameGREEN LIFE Co., Ltd.
GREEN LIFE HIGASHINIHONCo., Ltd.

Sompo Care Inc.

Kyowakai Medical
Corporation

Benesse Style Care
Co., Ltd.

Proud Life Inc.

Sawayaka Club Co.,
Ltd.

Number of facilities(Note 1)

Remarks

A consolidated
subsidiary of SHIPHEALTHCAREHOLDINGS, INC.,
which is listed on
the TSE First
SectionA 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 (Hapine Kobe Gakuentoshi)
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 First
SectionMainly 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 Awajiekimae
SOMPO CARE Sompo no ie Kobekamisawa
SOMPO CARE La vie Re Hama-Kawasaki

17.1

7

-

A major medical corporation operating a wide
range of businesses including six hospitals(2,276 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 (Senri-Chuo Hospital)

11.4

－

A consolidated
subsidiary ofBenesse Holdings,
Inc., which is listedon the TSE First
SectionOperates 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
Medical Rehabilitation Home Bonsejour Komaki
Bonsejour Yotsugi
Medical Home Bonsejour Itami
Granda Tsuruma-Yamato

9.6－

A consolidated
subsidiary of Sony
Group Corporation,
which is listed on
the TSE First
SectionA 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

7.5－

A consolidated
subsidiary of
UCHIYAMAHOLDINGS Co.,
Ltd., which is listedon the TSE First
SectionOperates facilities under the SAWAYAKA
brand (low price range without advance fees)around Japan, centering on Fukuoka
Prefecture.

SAWAYAKA Tachibanakan
SAWAYAKA Mekarikan
SAWAYAKA Tagawakan

4.9

Hospital

28

－

38

452

4

(Note 4)

339

29

90

－

－

Facilities owned by HCM

Share
(%)

Attribute

Facilities andhousing forthe elderly(Note 2)28.2

(Note 3)46

Ⅵ Appendix②

Operator List②
Operator name

Number of facilities(Note 1)
Facilities andhousing forthe elderly

Hospital

Facilities owned by HCM

Share
(%)

Attribute

Remarks

Sunny Life Kita-Shinagawa
Sunny Life Kamakura

4.8(Note 2)

Kawashima
Corporation

136－

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

4.4Operating 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 (Aikoen Ichibankan)
Niigata Rehabilitation Hospital

4.2

Medical Corporation
AIKOKAI

122

A medical
corporation which
belongs to NSG
Group with sales ofover 110 billion
yen (Note 5)

AS PARTNERS Co.,
Ltd.

22

－

Unlisted company

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

ASHEIM Hikarigaoka
ASHEIM Bunkyohakusan

4.2－

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

2.6－

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

Nichii Carepalace Company operates "Nichii
Home", a paid nursing home, and "Iris
Garden", serviced housing for the elderly,
mainly in the Tokyo metropolitan area. It is acore company that promotes in-homenursing care for the Nichii Group, which
operates nationwide, focusing on nursing
care, medical care, and education.

JAPAN LIFEDESIGN
Inc.

Nichii Carepalace
Company3

81

Nichii Home Nishikokubunji

1.1(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, 2021).
(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 3.4%.
(Note 4) Only the number of long-term care health facilities is indicated.
(Note 5) Indicates the actual figures in September 2021 based on NSG Group’s website.

47

Ⅵ Appendix②

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

Property nameAppraisal company

Appraisal value(million yen)(A)

Direct capitalization
methodIndicatedvalue(million yen)

DCF method

Capitalization
rate
(%)

Indicatedvalue(million yen)

Discount rate(%)
(Note 2)

Terminal
capitalization
rate (%)

Appraisal NOI(million yen)
(Note 3)End of July 2021
Appraisal value(million yen)(B)

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

AQUAMARINE Nishinomiyahama

Rich Appraisal
Institute Co., Ltd.

2,100

2,110

5.2

2,090

4.9

5.4

117

2,060

+40

Bonsejour Chitose-funabashi

The Tanizawa Sogo
Appraisal Co., Ltd.

974

994

4.4

966

4.5

4.6

48

974

0

Bonsejour Hino

The Tanizawa Sogo
Appraisal Co., Ltd.

818

832

4.8

812

4.9

5.0

43

818

0

Bonsejour Musashi-shinjo

The Tanizawa Sogo
Appraisal Co., Ltd.

643

653

5.1

638

5.2

5.3

39

643

0

Medical Rehabilitation Home Bonsejour Hadanoshibusawa

The Tanizawa Sogo
Appraisal Co., Ltd.

850

864

5.0

844

5.1

5.2

47

850

0

Medical Rehabilitation Home Bonsejour Komaki

The Tanizawa Sogo
Appraisal Co., Ltd.

1,450

1,460

5.5

1,440

5.6

5.7

92

1,450

0

ASHEIM Hikarigaoka

Japan Real Estate
Institute

1,520

1,530

4.7

1,500

4.5

4.9

76

1,490

+30

ASHEIM Bunkyohakusan

Japan Real Estate
Institute

1,680

1,700

4.3

1,660

4.1

4.5

74

1,650

+30

SOMPO CARE La vie Re Machidaonoji

Japan Real Estate
Institute

3,940

3,990

4.7

3,890

4.5

4.9

193

3,780

+160

SOMPO CARE La vie Re Azamino

Japan Real Estate
Institute

3,300

3,350

4.5

3,250

4.3

4.7

156

3,230

+70

SAWAYAKA Tachibanakan

Japan Real Estate
Institute

1,550

1,560

5.5

1,530

5.3

5.7

93

1,520

+30

SAWAYAKA Mekarikan

Japan Real Estate
Institute

1,430

1,440

5.6

1,410

5.4

5.8

85

1,400

+30

SAWAYAKA Tagawakan

Japan Real Estate
Institute

383

386

5.7

380

5.5

5.9

25

377

+6

GOOD TIME HOME Fudo-mae

Japan Real Estate
Institute

1,990

2,020

4.3

1,960

4.1

4.5

91

1,950

+40

Bonsejour Yotsugi

The Tanizawa Sogo
Appraisal Co., Ltd.

886

902

4.7

879

4.8

4.9

48

886

0

Medical Home Bonsejour Itami

The Tanizawa Sogo
Appraisal Co., Ltd.

557

566

5.1

553

5.2

5.3

36

557

0

Kobe Gakuentoshi Building (Hapine Kobe Gakuentoshi)

Daiwa Real EstateAppraisal Co., Ltd.

4,540

4,600

4.6

4,520

4.4

4.8

227

4,450

+90

GreenLife Moriguchi

Daiwa Real EstateAppraisal Co., Ltd.

4,500

4,560

4.5

4,470

4.3

4.7

220

4,400

+100

Hapine Kobe Uozaki Nibankan

Daiwa Real EstateAppraisal Co., Ltd.

995

1,010

4.6

988

4.4

4.8

48

974

+21

Granda Tsuruma-Yamato

The Tanizawa Sogo
Appraisal Co., Ltd.

1,060

1,070

4.7

1,050

4.8

4.9

53

1,060

0

48

Ⅵ Appendix②

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

Property nameAppraisal company

Appraisal value(million yen)(A)

Direct capitalization
methodIndicatedvalue(million yen)

DCF method

Capitalization
rate
(%)

Indicatedvalue(million yen)

Discount rate(%)
(Note 2)

Terminal
capitalization
rate (%)

Appraisal NOI(million yen)
(Note 3)End of July 2021
Appraisal value(million yen)(B)

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

Smiling Home Medice Adachi

The Tanizawa Sogo
Appraisal Co., Ltd.

2,500

2,530

4.6

2,480

4.7

4.8

120

2,500

0

AIKOEN ICHIBANKAN Building

The Tanizawa Sogo
Appraisal Co., Ltd.

860

864

5.2

858

5.3

5.4

45

860

0

Hanakotoba Minami

Japan Real Estate
Institute

1,240

1,250

4.4

1,220

4.2

4.6

56

1,180

+60

Hanakotoba Miura

The Tanizawa Sogo
Appraisal Co., Ltd.

668

676

4.8

664

4.9

5.0

35

668

0

SOMPO CARE La vie Re Hama-Kawasaki

JLL Morii Valuation &Advisory K.K.

1,810

1,840

4.6

1,780

4.4

4.8

89

1,810

0

Hanakotoba Shin-Yokohama

Japan Real Estate
Institute

2,330

2,360

4.3

2,300

4.1

4.5

109

2,230

+100

Hanakotoba Shin-Yokohama II

Japan Real Estate
Institute

383

385

5.0

380

4.8

5.2

21

376

+7

Hanakotoba Odawara

The Tanizawa Sogo
Appraisal Co., Ltd.

947

961

4.9

941

4.8～5.0

5.1

49

946

+1

Verde Minowa

Daiwa Real EstateAppraisal Co., Ltd.

1,700

1,710

5.0

1,690

4.8

5.2

109

1,700

0

Verde Hotaka

Daiwa Real EstateAppraisal Co., Ltd.

1,430

1,440

5.4

1,420

5.2

5.6

91

1,430

0

Sunny Life Kita-Shinagawa

Daiwa Real EstateAppraisal Co., Ltd.

2,040

2,070

4.3

2,020

4.1

4.5

90

2,000

+40

Sunny Life Kamakura

The Tanizawa Sogo
Appraisal Co., Ltd.

1,580

1,600

4.5

1,570

4.6

4.7

76

1,580

0

Nichii Home Nishikokubunji

Daiwa Real EstateAppraisal Co., Ltd.

761

772

4.3

756

4.1

4.5

36

762

△1

SOMPO CARE Sompo no ie Awajiekimae

Japan Real Estate
Institute

2,210

2,230

5.1

2,180

4.9

5.3

116

2,170

+40

SOMPO CARE Sompo no ie Kobekamisawa

Japan Real Estate
Institute

1,360

1,370

5.1

1,340

4.9

5.3

72

1,340

+20

Niigata Rehabilitation Hospital

Japan Real Estate
Institute

2,300

2,310

6.5

2,290

6.3

6.7

153

2,260

+40

SHIP SENRI BUILDINGThe Tanizawa Sogo
Appraisal Co., Ltd.

14,20014,4004.5

14,1004.5～4.6

4.7

679

14,200073,48574,365―72,819

―

―

3,773

72,531+954

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

“Appraisal value” is based on the appraisal report with January 31, 2022, 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. For Hanakotoba Odawara, the rate is 4.8% for 1 year and 5.0% for 2 years onward; and for SHIP Senri Building, the rate is 4.5% for 1~2 years and 4.6% for 3 years onward.
“Appraisal NOI” indicates net operating income obtained by direct capitalization method stated in real estate appraisal report with January 31, 2022 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 this document.

49

Ⅵ Appendix②

Status of Income/Expenditure of Owned Properties(As of the End of the 14th Fiscal Period)(Unit: thousand yen)

Property nameReal estate lease businessrevenue

Real estate lease business expenses

Rent
revenue

RepairexpensesOtherrevenue

Property tax

Outsourcing

Insurance
expenses

Depreciation
andamortization

NOI (Note 2)
Other

AQUAMARINE Nishinomiyahama

25,567

4,271

2,100

1,875

236

16,684400

58,459Bonsejour Chitose-funabashi

5,582

1,794

225

-

112

3,048

401

21,400

Bonsejour Hino

5,070

1,240

214

-

85

3,130

400

19,480

Bonsejour Musashi-shinjo

4,102

1,011

167

-

75

2,447

400

16,161

Medical Rehabilitation Home Bonsejour
Hadanoshibusawa

8,402

1,816

213

-

154

5,817

400

21,106

Medical Rehabilitation Home Bonsejour Komaki

14,138

4,554

201

-

355

8,627

400

39,571ASHEIM Hikarigaoka

16,122

3,824

381

42

212

11,260400

40,888ASHEIM Bunkyohakusan

12,168

2,575

381

-

129

8,680

400

38,700

SOMPO CARE La vie Re Machidaonoji

46,925

5,950

780

783

392

38,618400

96,69337,856

4,703

780

5,033

285

26,654400

73,997

26,582

2,665

1,200

-

370

21,945400

47,220SAWAYAKA Mekarikan

26,329

2,958

1,200

-

273

21,498400

43,402SAWAYAKA Tagawakan

8,485

1,106

1,200

-

119

5,659

400

12,858GOOD TIME HOME Fudo-mae

15,369

3,051

600

519

182

10,616400

46,247

Bonsejour Yotsugi

4,924

940

223

-

73

3,286

400

20,755

Medical Home Bonsejour Itami

6,519

1,376

371

-

111

4,260

400

13,962

Kobe Gakuentoshi Building (Hapine Kobe
Gakuentoshi)

52,912

9,564

900

919

579

40,549400

114,037

GreenLife Moriguchi

38,816

6,919

1,363

4,169

379

25,583400

106,767

Hapine Kobe Uozaki Nibankan

9,595

1,395

1,200

39

90

6,470

400

24,375Granda Tsuruma-Yamato

7,262

1,934

618

-

152

4,158

400

27,052

SOMPO CARE La vie Re Azamino
SAWAYAKA Tachibanakan

Not disclosed (Note 1)

50

Ⅵ Appendix②

Status of Income/Expenditure of Owned Properties(As of the End of the 14th Fiscal Period)(Unit: thousand yen)

Real estate lease businessrevenue
Property nameRent
revenue

Real estate lease business expenses

Otherrevenue

Propertytax

Outsourcing

RepairexpensesInsurance
expenses

Depreciation
andamortization

NOI (Note 2)
Other

Smiling Home Medice Adachi

17,556

3,279

540

1,746

177

11,413400

59,064

AIKOEN ICHIBANKAN Building

8,477

2,554

780

-

112

4,630

400

22,814

Hanakotoba Minami

9,959

1,535

600

2,230

79

5,114

400

25,754

Hanakotoba Miura

9,853

1,548

600

1,086

88

6,129

400

16,676

SOMPO CARE La vie Re Hama-Kawasaki

18,845

3,433

2,770

350

206

11,684400

45,190

Hanakotoba Shin-Yokohama

18,005

4,383

900

3,529

249

8,543

400

52,450

Hanakotoba Shin-Yokohama II

5,939

2,499

600

286

92

2,061

400

10,934

9,157

1,364

600

984

99

5,709

400

24,151

25,991

5,190

1,020

-

508

18,871

400

56,788

Verde Hotaka

26,692

2,174

1,020

2,270

249

20,578400

43,992Sunny Life Kita-Shinagawa

10,180

2,793

600

-

119

6,265

401

45,585Sunny Life Kamakura

12,825

2,796

720

80

179

8,650

400

38,746

Nichii Home Nishikokubunji

2,782

-

660

90

92

1,540

400

19,897

SOMPO CARE Sompo no ie Awajiekimae

27,244

4,909

510

128

298

20,998400

58,215

SOMPO CARE Sompo no ie Kobekamisawa

17,209

2,900

510

499

183

12,715400

35,800Niigata Rehabilitation Hospital

27,563

9,668

1,030

-

387

15,977500

78,294

SHIP SENRI BUILDING

80,25927,500

1,500

-

1,183

49,675400

341,218

701,277

142,184

29,283

26,664

8,683

479,559

14,903

1,858,718

Hanakotoba Odawara
Not disclosed

Verde Minowa

Total(Note 1)
(Note 2)

(Note 1)2,080,436 2,069,514

10,921”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

51

Ⅵ Appendix②

Balance Sheet and Statement of Income for the 14th Fiscal Period
Balance Sheet(Unit: thousand yen)

AssetsStatement of Income
13th Fiscal Period
ended July 2021

14th Fiscal Period
ended January 2022

Current assets

1,806,355

Cash and deposits

1,482,160

Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Derivative receivables

207,158
3,042
113,994－2,001,918
1,689,721
181,881
2,081
125,455
2,778

Non-current assets

67,053,357

Property, plant and equipment

66,877,828
397
175,131
24,117
6,424
17,693
68,883,830

66,759,887
66,525,573
198
234,115
16,652－
16,652
68,778,458

7,797,089

10,016,661

Intangible assets
Investments and other assets
Deferred assets
Investment unit issuance expenses
Investment corporation bond issuance costs
Total assets

Liabilities

Current liabilities
Operating accounts payable
Current portion of long-term loans payable

79,8277,000,000

Accounts payable – other121,248

Accrued expenses

238,140

Income taxes payable
Consumption taxes payable887
15,496

Advances received

341,362

Deposits received

126

Derivative liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits intrust－
28,121,947
2,000,000
24,150,000
1,865,509

62,1909,250,000
104,024
240,609866
17,631
338,838
795
1,705
25,894,748
2,000,000
21,900,000
1,865,509

86,766

86,766

Deferred tax liabilities

1,217
18,453

10,473

Derivatives liabilities

Total liabilities
Net assets

35,919,037
32,980,592

32,877,933

Unitholders' capital, net

31,997,489

Surplus983,103△15,799△15,799
32,964,792
68,883,830

31,948,891
929,041△10,884△10,884
32,867,048
68,778,458

Deferred gains or losses on hedges
Total net assets
Total liabilities and net assets

Operating revenue
Leasing business revenues

13th Fiscal Period
ended July 2021

2,073,038
2,062,148
10,88914th Fiscal Period
ended January 2022

2,080,436

2,069,514

994,481

10,921
1,007,899

Expenses related to leasing business

690,998
197,621701,277

Asset management fee

Other revenue related to leasing business

Operating expenses

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

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

3,432
21,461
4,800
27,787
48,3801,078,556

200,330
3,430
21,551
4,800
28,45748,051

1,356
8
762
584
157,821

1,072,537
469
6
－
463
159,068

86,60088,014

7,800

7,800

6,424

6,424

1,040

1,040

55,955922,091922,091

55,789913,938
913,938

Income taxes - current

888
0

867

Income taxes - deferred

Borrowing expenses
Ordinary income
Income before income taxes

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

889
921,201
61,901
983,103

1
868
913,069
15,971
929,041

31,99735,911,409

Unitholders’ equity

Valuation and translation adjustments(Unit: thousand yen)52

Ⅵ Appendix②

Information Related to Investment Units(As of the end of the 14th fiscal period)
Status of Unitholders

Ratio of Number of
Investment Unitsby Unitholder Type

Other companies Foreign
investors
5.1%
11.1%
Securities
companies
Total
2.4%

Individuals,
etc,
30.5%

311,001
units

List of Top Unitholders

Ratio of Number ofUnitholders
by Unitholder Type

Securities
companies
0.1%
Financial
institutions
0.3%

Ranking

Other companies
1.5%

Total
15,490peopleForeigninvestors
0.8%

Financial institutions
50.8%

Ownership
ratio
(%)

１

Custody Bank of Japan, Ltd.
(Trust Account)

83,72426.9

２

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

36,99311.9

３The Nomura Trust and Banking Co.,
Ltd. (Investment Trust Account)

10,016

3.2

４

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

7,913

2.5

5

NORTHERN TRUST CO. (AVFC) RE
FIDELITY FUNDS

7,627

2.5

NEC Capital Solutions Limited

4,000

1.3

SHIP HEALTHCARE HOLDINGS INC.

4,000

1.3

Sumitomo Mitsui Banking Corporation

4,000

1.3

9

DFA INTERNATIONAL REAL ESTATESECURITIES PORTFOLIO

3,560

1.1

10

GOLDMAN SACHS INTERNATIONAL

3,436

1.1

165,269

53.1(Note)

Individuals,
etc,
97.3%

Name

Number ofinvestment
units owned(units)(Note) Decreased by 122 from the previous fiscal period

Changes in Ratio of Number of Investment Units by
Unitholder Type (most recent 5 fiscal periods)
7.4%
5.2%
4.7%

9.1%
4.9%
4.2%

9.9%
5.0%
4.2%

9.0%
4.9%
5.9%

11.1%
5.1%
2.4%
Foreigninvestors

50.3%

49.6%

49.6%

49.0%

50.8%

Other
companies
Securities
companies
Financial
institutions

32.4%

32.2%

31.3%

31.2%

30.5%

10th FP

11th FP

12th FP

13th FP

14th FP

6

Individuals, etc,

Total
(Note)The ratio of each index is rounded off to the first decimal place.

53

Ⅵ Appendix②

Environment Surrounding Healthcare Facilities ①
Rising Elderly Ratio and Increase in Elderly Single
Households

Upgrades and Expansion of Healthcare Facilities
June
Backedby Government Policy
2015

Outlook of Change in Japan’s Population and Elderly Ratio(10 thousand people)

15,000

Actual
65~74歳65-74 years
old75 years old
Percentage
over
75歳以上の割合

75歳以上
75 years old or older
64歳以下
64 years old
or65
younger
Percentage
overyears old
65歳以上の割合

10,000Estimate

26.3%
10,71810,854

5,000

10.3%
3.9%
776
471

0

1985
1985年

1,109
717

10,161
14.5%
5.7%

1995
1995年

1,407
1,160

8,577

9,218

20.1%

17.8%

12.7%

9.1%

2005
2005年

36.8%

32.8%

30.0%

40%

March
2021

30%

7,740 19.6%

6,723

1,734
1,613

1,497
2,180

1,522
2,260

1,643
2,277

2015
2015年

2025
2025年

2035
2035年

2045
2045年

10%
0%

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

the National Institute of Population and Social Security Research

Ratio of Elderly Single Households in Elderly Households
Couplewith no夫婦のみ
other members

Other
その他

30,000

ActualEstimate

34.0%

20,000

27.3%

24.8%

Ratio
of single elderly
単独高齢者割合

Single
単独

35.7%

37.4%

39.0%

40%
6,590

6,879

6,756

6,606

6,740

6,763

6,693

6,666

6,870

4,791

5,928

7,025

7,512

7,959

8,418

8,963

2010年
2010

2015年
2015

2020年
2020

2025年
2025

2030年
2030

2035年
2035

2040年
2040

9,022

10,000

6,420

5,525

0

50%

40.0%

6,510

9,365

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

21.4% 20%

Source: Statistics Bureau, Ministry of Internal Affairs and Communications “2015 census“ and “Population Projection for Japan (2017 projection)” by(Thousand households)

Housing Life Basic Plan
(nationwide plan)

Resident Capacity

Resident Capacity

Resident Capacity（Note）

thousand people

thousand people

230

thousand people

20%

thousand people

2005

10%
0%

2030

2018

2014

0.9％

1,490

890

690

Resident Capacity

30%

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.

Source: Statistics Bureau, Ministry of Internal Affairs and Communications “2015 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 1.6% in 2019, andpromotion of further supply is needed.

Supply Status of Paid Nursing Homes(people)600,000

定員数（人）
Resident
capacity
1.1%

1.0%

400,000
0.7%

1.6%

1.6%

2.0%
1.5%

0.7%

1.0%
0.5%

195,9722010

216,1742011

315,234

350,990

2012

2013

391,1442014

424,8282015

482,7922016

518,5072017

552,350

576,116

2018

2019

Numberof units
戸数200,000

0.42%

65歳以上人口に対する供給率
Supplyrate for 65 years ole or older

0.50%

0.57%

0.61%

0.64%

0.67%

0.70%

0.72%

6,000
1.00%

0.50%

0.29%

8,000

0.0%

Supply Status of Serviced Housing for the Elderly
300,000

Ratio of quake-resistant paid nursing homes is 95% or more while that ofquake-resistant hospitals remains at 77.3%.
Quake-resistant statues of hospitals


Supply rate for 65 years ole or older
65歳以上人口に対する供給率
1.5%
1.4%
1.3%
1.2%

200,000
0

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

Number of hospitals with earthquake resistance in all buildings
全ての建物に耐震性のある病院数

Number of hospitals with earthquake resistance in some buildings
一部の建物に耐震性がある病院数

Number of hospitals where all buildings are not earthquake resistant
全ての建物に耐震性がない病院数

Number of hospitals whose seismic resistance of buildings is
建物の耐震性が不明である病院数
unknown

1,955

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

5,687

5,880

6,050

6,130

6,231

6,318

6,382

2014年…
2014
survey2015年…
2015
survey2016年…
2016
survey2017年…
2017
survey2018年…
2018
survey2019年…
2019
survey2020年…
2020
survey

4,000
2,000

100,000
0.01%
3,448
0

89,122

135,352

166,279

191,871

210,859

225,374

238,289

250,3520

262,021

2016
2017
2019
2020
2011
2012
2013
2014
2015
2018
2011年12月
2012年12月
2013年12月
2014年12月
2015年12月
2016年12月
2017年12月
2018年12月
2019年12月
2020年12月
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.

0.00%

Source: Ministry of Health, Labor and Welfare “Survey of hospital seismic repairs (2020 survey)”

54

Ⅵ Appendix②

Environment Surrounding Healthcare Facilities ②
Overview of Nursing Care Fee Revision in Fiscal year 2021
Revision rate ： +0.70％ （0.05% of it is special evaluations for dealing with COVID-19（Until the end of September 2021））
Major viewpoints of the revision

3.Promotion of actions for independence support and prevention of severity

1.Strengthening responsiveness to infectious diseases and disasters

4.Securing nursing care personnel and innovation nursing care place

2.Promotion of comprehensive community care system

5.Ensuring the stability and sustainability of the system

Changes Made by Recent Revisions
Revision period (FY)

Major points upon revision

Revision rate

2009





Securement of personnel by nursing care business operators and improvement of working conditions
Cooperation with medical services and enhanced care for people with dementia
Provision of efficient services and securement of new services

3.00％

2012






Improvement of in-home services and more focused efforts on facilities
Improvement and increased focus of efforts on services to support independent living
Cooperation between medical services and nursing care services, and division of functions
Securement of nursing personnel and evaluation of service quality

1.20％

2014（temporary）

Response to consumption tax hike (8%)

0.63％

2015

Further strengthening of response to people requiring moderate to severe level of nursing care and the elderlywith dementia
 Promotion of measures to secure nursing personnel
 Improvement in evaluation of services and establishment of efficient service provision system

2017（temporary）



Improvement of working conditions for nursing personnel△2.27％
1.14％

Promote regional comprehensive care system
Realize high-quality nursing care services that contribute to supporting unassisted living and preventing ofincrease in severity
 Secure various human resources and improve productivity
 Secure stability and sustainability of the system through making nursing care services more appropriate andfocused

0.54％

Strengthening responsiveness to infectious diseases and disasters
Promotion of comprehensive community care system
Promotion of actions for independence support and prevention of severity
Securing nursing care personnel and innovation nursing care place Ensuring the stability and sustainability of the system

0.70％




2018

2021






55

Ⅵ Appendix②

Environment Surrounding Healthcare Facilities ③
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••Acute care hospital
Subacute and recovery phase/recovery
phase rehabilitation hospital

When you need nursing care...
Nursing care

Hospital visit&
stay

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

Outpatient nursing care&admission

Residence• Regional comprehensive
support center• Care manager••
We coordinate consultation
business and services

Own house
Serviced housing for the elderly, etc.

Patients
with dementia

 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

To live a healthy life forever...

Life support & nursing care prevention

 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.

* 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 Welfare56

Ⅵ Appendix②

Environment Surrounding Healthcare Facilities ④
About 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 2020)(Hospital Ward A)

Total 1.209 million beds

Medical institution

Advanced acutestage function

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

Number of Beds to be Requiredin 2025

Advanced acute stage
156,000 beds
(13%)

Total 1.191 million beds (Note)

Decrease by approx. 25%(Hospital Ward B)

Voluntarily
selectmedicalfunction

Acute stage
function

Acute stage
401,000 beds
(34%)
Acute stage
547,000 beds
(45%)

(Hospital Ward C)
Recovery stage
function

Recovery stage
375,000 beds
(31%)

(Hospital Ward D)
Chronic stage
function

Increase by approx. 2 times

Recovery stage
189,000 beds
(16%)

Prefectural
government

Advanced acute stage
131,000 beds
(11%)

Report current status andfuture direction of medical
functions

Decrease by approx. 10%

Chronic stage
317,000 beds
(26%)

Establish “Regional Healthcare Vision” by utilizing reports on medical
functions, etc. and promote further functional differentiation

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(Source) Prepared by the Asset Management Company based on “Initiatives for Medical/Nursing Care
Reform” (June 22, 2017) by the Ministry of Health, Labour and Welfare(Note 1) The upper chart is prepared by the Asset Management Company based on the “Community Healthcare Initiative”
of the Ministry of Health, Labour and Welfare.

(Note)

Total of Cabinet Secretariat’s estimates (June 2015). Within the range of 1.148 million beds
to 1.191 million beds.

57

Ⅵ Appendix②

Environment Surrounding Healthcare Facilities ⑤
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 government’s 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

Long-term care health facilities(nursing and health facilities forthe elderly)

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

58

Ⅵ Appendix②

HCM’s 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

59

Ⅵ Appendix②

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

Sompo Care Inc.

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

AS PARTNERS Co., Ltd.

(Note) The special benefits are for unitholders as of the end of January 2022 and are subject to change in the future.

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

Tour with free lunch

60

Ⅵ Appendix②

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
SHIP HEALTHCARE HOLDINGS, INC.
NEC Capital Solutions Limited

As of October 1, 2021
General Meeting of
Shareholders
Audit & Supervisory
Board Member
Board of Directors

33.3%

Compliance Committee

33.3%

Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Finance and Leasing Company,
Shareholders

Management Committee

LimitedSMBC Nikko Securities Inc.
Yoei Co.,Ltd.
Ginsen Co.,Ltd.
Kobe Tochi Tatemono Co.,Ltd.
Muromachi Building Co.,Ltd.

5.0%

Representative Director

4.8%
4.8%

Internal Audit Office

4.7%
4.7%
4.7%
4.7%

Investment
Department(Newly established)
Healthcare
Asset
Business
Management
Promotion
Department
Department

Compliance OfficeFinancial &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 (2) No. 96339
License as an entrusted agency services for transactions
Minister of Land, Infrastructure, Transport and Tourism No. 85

61

Ⅵ Appendix②

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

Sales

497,156 million yen on a consolidated basis(fiscal period ended March 2021)

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: Tomoo Imazeki

FoundedNovember 1978

Capital stock

3,776 million yen

Sales

209,914 million yen(fiscal period ended March 2021)

Sumitomo Mitsui Banking Corporation

Positioned as the core company of the SMBC Group, SMBC possesses one of
the strongest 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: Makoto Takashima

Capital stock

1,770,996 million yen

62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 18, 2022) 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.

63