Fiscal Period Ended July 2016
(3rd Fiscal Period)
Financial Results
Briefing Materials

Asset Management Company

Securities Code: 3455

Table of Contents
I. About Healthcare & Medical Investment Corporation(from P2)
1. Investment Philosophy
2. Four Features
II. Financial Summary (from P5)
1. 3rd Fiscal Period Topics
2. 3rd Fiscal Period Financial Highlights
3. 4th Fiscal Period and 5th Fiscal Period Earnings
Forecast
4. Financial Status
III. Portfolio Management Status (from P12)
1. Properties Acquired in 3rd Fiscal Period
2. Portfolio Highlights
3. Portfolio Map
4. Portfolio List
5. Operator List
IV. External Growth Strategy (from P19)
1. Road Map to External Growth
2. Pipeline Status
3. Action Strategy
4. Action Case Examples

1

V. Appendix (from P24)
1. Environment Surrounding Healthcare
Facilities (Facilities and Housing for the
Elderly)
2. Environment Surrounding Healthcare
Facilities (Medical Service-Related
Facilities)
3. Detailed Portfolio List
4. Overview of Operators
5. Status of Unitholders
6. Overview of Unitholder Special
Benefit Plan
7. Information related to Investment
Units
8. HCM’s Network
9. Profile of Asset Management
Company
10. Profile of Major Sponsors

I. About Healthcare & Medical Investment Corporation

2

1. Investment Philosophy

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

Contribute to an aging society
Promote the supply of healthcare facilities as social infrastructure

Develop a portfolio specialized in healthcare facilities, for which demand is expected to growMaximize unitholder value over the medium and long term
Serve as a conduit between the nursing care and medical service industries
and the capital markets3

2. Four Features

1
2

Focused investment in healthcare facilities, for which demand is expected to grow
Aim to serve as a conduit between the nursing care and medical service industries and the capital markets
by steadily investing in and holding healthcare facilities, which must be upgraded and expanded, andthereby contribute to the aging society

Stable asset management base utilizing the sponsors’ functions and know-how
Conduct stable asset management and expand its portfolio in the medium to long term by proactively
utilizing the strength of the main sponsors, which have expertise in “nursing care and medical service,”“fund management” and “finance”

3

Secure acquisition opportunities by utilizing extensive networks
Secure opportunities to acquire healthcare facilities by utilizing the extensive networks of sponsors,
supporting companies and the asset management company as well as the warehousing function and firstrefusal rights provided in the support agreements, etc.

4Stable cash flow based on long-term fixed-rent lease agreements
Aim to secure stable revenues over the medium to long term by concluding long-term fixed-rent leaseagreements with carefully-selected credible operators and through continuous monitoring4II. Financial Summary5

1. 3rd Fiscal Period Topics
New Property Acquisition
Acquired 2 paid nursing homes by utilizing borrowings and cash reserves on March 30, 2016

Number of properties:

18 properties(+2 properties from previous fiscal period)

Property
nameBonsejour Yotsugi

Medical Home
Bonsejour Itami

Acquisition
price(Note 1)824 million yen

514 million yen

Management Performance

Total acquisition price:25.0 billion yen(+1.3 billion yen from previous fiscal period)

Period-End Financial Status(Comparison with Previous Fiscal Period)

Loan balance
14.0 billion yen

Distribution per unit: 2,340 yen(+1.0 billion yen)(forecast: 2,100 yen; +11.4% from forecast) (Note 2)

LTV (Note 3)
50.2％（+1.8％）(Note 1)Acquisition price does not include acquisition expenses, consumption tax, etc.
(Note 2)The forecast, which is the forecast at the previous fiscal period’s settlement of accounts, is the forecast figure disclosed
in the Financial Report for the 2nd Fiscal Period dated March 15, 2016.
(Note 3)LTV is the ratio of interest-bearing liabilities to total assets, rounded to the first decimal place.
(Note 4)Each is the weighted average based on the loan amount, rounded down to or at two decimal places.

6

Average borrowinginterest rate (Note 4)

0.35％（△0.05％）
Average remaining term
to maturity (Note 4)

1.1 years（△0.6 years）

2-1. 3rd Fiscal Period Financial Highlights2
Statement of Income
2nd Fiscal Period(Ended Jan. 2016)

Operating revenue

ActualForecast(Note)

Actual

（A）

（B)

（C）

745

(Unit: million yen)

3rd Fiscal Period(Ended July 2016)

745

771

Comparison
Comparison
with 2nd Fiscal
with Forecast
Period
（C-A）

（C-B）

+26

+26

361

432

429

△2

+67

Expenses related
to rent business

222

284

283

△1

+61

(Depreciation)

195

197

202

+5

+6

Operating income

383

313

342

+28

△41

Operating expenses

Ordinary income

Net income

Distribution perunit (yen)

329

254

282

+28

△46
△390

△46

Main Factors of Difference(Comparison with Forecast) Difference in operating revenue (+26)✓Increase in rent income due to property acquisition (+26)

 Difference in operating expenses (-2)✓Decrease in expenses related to rent business (-1)
・Repair expenses (-6)
・Depreciation (+5)✓Other expenses (-1)

・Decrease in property taxes, advertising expenses, etc.

Main Factors of Difference(Comparison with 2nd Fiscal Period) Difference in operating revenue (+26)✓Increase in rent income due to property acquisition(+26)

 Difference in operating expenses (+67)

328

253

281

+28

2,730

2,100

2,340

+240

✓Increase in expenses related to rent business (+61)
・Fixed asset tax and city planning tax (+49)
・Depreciation (+6)

 Decrease in non-operating income (-6)
・Decrease in insurance income (-6)(Note)The forecast for the 3rd Fiscal Period (B) is the forecast figure announced in the Financial Report for the 2nd Fiscal Period dated March 15, 2016.

7

2-2. 3rd Fiscal Period Financial Highlights
Balance Sheet(Unit: million yen)

(Unit: million yen)
2nd Fiscal Period 3rd Fiscal Period
Difference(As of End of(As of End of
Jan. 2016)
July 2016)(B)-(A)(A)(B)

AssetsCurrent assets
Cash and deposits(Note 1)

+7,033+6,000

1,848

△165

1,959

1,796

△162

Short-term loans payable

-

7,269
1,000

54

△2

Current portion of
long-term loans payable

-

6,000

+1,19324,837

Property, plantand equipment

24,781

25,994+1,212

Buildings in trust(Note 2)

14,194

14,663+468

Accumulated
depreciation

△358

△560

△202

Land in trust

10,944+946

Intangible assets

7

11,891
6

Investments
and other assets

48

29

△18

23

17
27,896△5

Total assets

236

2,014

Non-current assets

Deferred assets

3rd Fiscal Period(As of End of
July 2016)(B)

Difference(B)-(A)

Liabilities

52
26,030Other

2nd Fiscal Period(As of End of
Jan. 2016)(A)

26,874Current liabilities

Other

Non-current liabilities
Long-term loans payable
Tenant leasehold
and security deposits

236
13,59513,000+1,000+33
269
7,631 △5,964
7,000 △6,000

595

631

+35

13,831

14,901+1,06912,713

12,713

0

329

282

△46

Total net assets

13,042

12,995△46

Total liabilities
and net assets

26,87427,896+1,022

Total liabilities

Net assets△0Unitholders’ capital
Unappropriatedretained earnings+1,022(Note 1)Cash and deposits includes cash and deposits in trust.
(Note 2)Buildings in trust includes facilities attached to buildings in trust, structures in trust, and tools, furniture and fixtures in trust.

8

3. 4th Fiscal Period and 5th Fiscal Period Earnings Forecast
Statement of Income

4th Fiscal Period Forecast(Comparison with 3rd Fiscal Period Actual)(Unit: million yen)

3rd Fiscal Period(Ended July 2016)
Actual（A）

4th Fiscal Period(Ending Jan. 2017)

5th Fiscal Period(Ending July 2017)

・Full-period contribution of rent income from properties acquiredin 3rd Fiscal Period (+12)

Comparison with
Comparison with
Forecast 3rd Fiscal Period Forecast 4th Fiscal Period
ActualForecast
（B）

（B-A）

（C）

771

784

+12

784

0

Operating expenses

429

439

+10

435

△4

Expenses related
to rent business

283

288

+5

290

+2

(Depreciation)

202

204

+2

205

+0

Operating income

342

344

+2

348

+4

Ordinary income

282

285

+2

279

△5

Distribution perunit (yen)

281

284

2,340 2,360+2

 Difference in operating expenses (+10)✓Difference in expenses related to rent business (+5)
・Depreciation (+2)
・Repair expenses (+2)✓Difference in other expenses (+5)

（C-B）

Operating revenue

Net income◆ Difference in operating revenue (+12)

・Asset management fee (+3)
・Expenses related to general meeting of unitholders (+4)
・Property taxes, etc. (-2)

5th Fiscal Period Forecast(Comparison with 4th Fiscal Period Forecast) Difference in operating expenses (-4)
・Increase in fixed asset tax and city planning tax (+2)
・Absence of expenses related to general meeting of unitholders (-4)
 Difference in non-operating expenses (+9)
・Increase in refinancing related expenses, and interest expenses due toconversion into longer terms and fixed rates (+9)

(yen)

3,000

△5

2,000

+20 2,310

△50

1,000

2,500

1,500
500
0

9

2,730

2,500

278

(Note)The forecast figures are based on the assumption that there will be no new property acquisition.

Changes in Distribution Per Unit
2,340

2,360

2,310

2,100

610
1st
FP
第1期

2nd
FP
第2期

3rd
FP
第3期

Initial Forecast

Actual

4th FP
第4期

5th
FP
第5期
Forecast

4-1. Financial Status
Category

Drawdown BalanceDate(million yen)

LenderShort-term
LoansLong-term loans

SMBC

March
30, 2016

SMBC
Nippon Life insurance
Resona Bank
Shinkin Central Bank
Nishi-Nippon City Bank
Higashi-Nippon Bank
Bank of Fukuoka
Mie Bank

March
20, 2015

Interest
Rate

Maturity

1,000

Base interest rate
（Note１）
March+
21, 2017
0.25％

6,000

Base interest rate
（Note１）
March+
21, 2017
0.20%

Hiroshima Bank
77 Bank４％
４％
Mie Bank
４％
Bank of Fukuoka
４％
Higashi-Nippon
Bank
４％
Nishi-Nippon
City Bank
４％
Dai-ichi-Life
Insurance
Total Amount４％
14,000 million yen
Shinkin Central
Bank
４％

SMBC
43%

Resona Bank
７％
SMBC
Sumitomo Mitsui Trust Bank
Nippon Life insurance
Resona Bank
77 BankDai-ichi-life Insurance
Hiroshima Bank

合計

March
20, 2015

7,000

0.466%（Note２）March
20, 2018

14,000――

Nippon Life
Insurance
７％

Sumitomo Mitsui
Trust Bank
14％

(Note 1)The base interest rate shall be the one-month tenor rate of the JBA Japanese Yen TIBOR.
(Note 2)An interest rate swap agreement was concluded with Sumitomo Mitsui Trust Bank on March 20, 2015 for the purpose of hedging future interest rate fluctuation risk. Therefore, theinterest rate that is, in effect, fixed by the agreement is shown in place of the floating interest rate.

104-2. Financial Status
Changes in LTV
51（％）(years)

（％）

2.5

0.42

0.40％

2

50.2

50

0.5

0.35％

0

47
2nd FP

1st FP

3rd FP

Ratio of Floating Rate to Fixed Rate, and Ratio ofLong Term to Short Term

2nd FP

120,000 ）7.1%

114,973

115,000

50%

50%

50.0%

Ratio of Long Termto Short Term

110,000

42.9%

3rd FP

117,414

109,606

105,000
100,000
Floatingborrowing
rate

Fixed-borrowing
rate

Short term Long term(current potion) Long term

第１期
1st FP(Note 1)Each indicator is a calculation of the figures as at the end of each fiscal period and is, in principle, rounded to the first decimal place.
(Note 2)Average remaining term to maturity is rounded down to the first decimal place, and average borrowing interest rate is rounded down to two decimal places.
(Note 3)NAV per unit is rounded down to the nearest whole number.

11

第２期
2nd
FP

0.36
0.34

Changes in NAV (Note 3)（yen)

Ratio of Floating
Rate to Fixed Rate

0.38

1.1 Years

48.4

1st FP

0.40

1.7 Years

1

48.8

0.40％

2.2 years

1.5

49
48

Average Remaining Term to Maturity, and Average Borrowing
Interest Rate (Note 2)

第３期
3rd FP

III. Portfolio Management Status12

1. Properties Acquired in 3rd Fiscal Period

Property Name

Bonsejour Yotsugi

Property Name

Medical Home Bonsejour Itami

Location

3-1-11, Higashiyotsugi, Katsushika-ku, Tokyo

Location

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

Operator

Benesse Style Care

Operator

Benesse Style CareType

Paid nursing home with care service

Housing-type paid nursing homeType

Number of Rooms/Resident Capacity

61 rooms/65 people

Number of Rooms/Resident Capacity

62 rooms/64 people

Acquisition Price

824 million yen

Acquisition Price

514 millon yen

Appraisal Value atTime Acquisition

855 million yen

Appraisal Value atTime Acquisition

539 million yen

Appraisal NOI Yield(Note)

5.8％

Appraisal NOI Yield(Note)

7.2％

Seller

Property
Characteristics

Healthcare Bridge 1-Go Godo Kaisha

Healthcare Bridge 1-Go Godo Kaisha

Seller・The property is located an approximate nine minute walk from Yotsugi stationon the Keisei Railway Oshiage Line. There is a friendly atmosphere of downtown
and a quiet residential area. The nursing occupants can feel close to Ayase Riverand Naka River, and together with large or small parks scattered nearby thefacility, they will be able to expect rich lifestyle.
・With a lounge space and family room in the common area, consideration is
given to the comfortable living for occupants.

Property
Characteristics

・The property is located in a commercial area an approximate two minute
walk from the East exit of the Hankyu Railway Itami Line terminal Itami
Station.
・Nursing staff is stationed 24 hours a day.

(Note)Appraisal NOI yield is appraisal value at time of acquisition divided by acquisition price, rounded to the first decimal place.

132. Portfolio Highlights
Number of Properties

Total Acquisition Price

Total Appraisal Value

Unrealized Gain/Loss

18 properties

25.0 billion yen

27.1 billion yen+1.1 billion yen（+0.3 billion yen fromprevious fiscal period）

Average Building Age

Average Remaining
Lease Term

Number of Operators

Occupancy Rate

17.4 years

12.8 years

７ companies

100％

Portfolio Diversification
Serviced housing
for the elderly

JAPAN LIFE DESIGN

Other area
Core cities

12.5％

11.6％

1.6％

Chubu area

5.1％

By type

Kinki area

Paid nursing
home

87.5％

22.4％

By
Geographical
Area

GREEN LIFE
Three Major
metropolitan
areas

86.9％

Tokyo metropolitan
area

59.4％

7.0％

7.8％

Sompo Care Next

26.5％

AS PARTNERS

11.3％

By Operator

Sompo Care Message

12.5％

Sawayaka Club

13.1％

(Note)The figures for By Type, By Geographical Area and By Operator are calculated on an acquisition price basis, rounded to the first decimal place.

14

Benesse Style Care

21.8％

3. Portfolio Map

Strategic investment in threemajor metropolitan areas
1

Bonsejour
Chitose-funabashi

2

Bonsejour Hino

3

BonsejourMusashi-shinjo

17 Bonsejour Yotsugi

59.4

Tokyo metropolitan area

Ratio of investment in threemajor metropolitan areas

4

Medical Rehabilitation
Home Bonsejour
Hadanoshibusawa

5 SOMPO CARE La vie

6 SOMPO CARE La vie

ASHEIM Hikarigaoka

8

ASHEIM
Bunkyohakusan

9 GOOD TIME HOMERe Machidaonoji

Re Azamino

％

86.9％

(Before acquisition of
2 properties: 86.1%)

718

Fudo-mae

12

22.4

7

16

Kinki area

％

17

8

15
4

14

2

1

14

13

5

11

6

9

3

10

5.1

Core cities

Chubu area
10 AQUAMARINE

11 Sompo no ie S Awajiekimae

12 Sompo no ie S Kobekamisawa

18 Medical Home

Nishinomiyhama

Properties acquired in
3rd Fiscal Period

Bonsejour Itami％

13 Medical Rehabilitation Home

15

Bonsejour Komaki

11.6

％

14 SAWAYAKA Tachibanakan

16 SAWAYAKA Mekarikan

Other area

1.6％

15 SAWAYAKA

Tagawakan

4-1. Portfolio List
Operator Name
GREEN LIFE

Property Name
AQUAMARINE Nishinomiyahama
Bonsejour Chitose-funabashi
Bonsejour Hino
Bonsejour Musashishinjo

Benesse Style Care

AS PARTNERS

Sompo Care Next

Medical Rehabilitation Home
Bonsejour Hadanoshibusawa
Medical Rehabilitation Home
Bonsejour Komaki

Sompo Care Message（Note5）

Paid nursing home with careservice
Paid nursing home with careservice
Paid nursing home with careservice
Paid nursing home with careservice
Paid nursing home with careservice

Nishinomiya-shi,
Hyogo
Setagaya-ku,
Tokyo
Hino-shi,Tokyo
Kawasaki-shi,
Tokyo
Hadano-shi,
Kanagawa
Komaki-shi,
Aichi
Katsushika-ku,
Tokyo
Itami-shi,
Hyogo
Nerima-ku,
TokyoBunkyo-ku,
TokyoMachida-shi,Tokyo
Yokohama-shi,
Kanagawa
Fukuoka-shi,
Fukuoka
Kitakyushu-shi,
Fukuoka
Tagawa-shi,
Fukuoka
Shinagawa-ku,
Tokyo
Osaka-shi,
Osaka
Kobe-shi,
Hyogo

Bonsejour Yotsugi

Paid nursing home with careservice

Medical Bonsejour Itami

Housing-type paid nursing home
Paid nursing home with careservice
Paid nursing home with careservice
Paid nursing home with careservice
Paid nursing home with careservice
Paid nursing home with careservice
Paid nursing home with careservice
Paid nursing home with careservice
Paid nursing home with careservice

ASHEIM Higarigaoka
ASHEIM Bunkyohakusan
SOMPO CARE
La vie Re Machidaonoji
SOMPO CARE
La vie Re Azaminio

SAWAYAKA Mekarikan
SAWAYAKA Tagawakan

JAPAN LIFE DESIGN

Location

Housing-type paid nursing home

SAWAYAKA Tachibanakan
Sawayaka Club

Type of Facility

GOOD TIME HOME Fudo-mae
Sompo no ie S AwajiekimaeServiced housing for the elderly

Sompo no ie S Kobekamisawa

Serviced housing for the elderly
Total

Acquisition Price(Note1)
Price(million yen)

Ratio
(Note2)

Appraisal Value(million yen)
(Note3)

Appraisal NOI(million yen)
(Note4)

1,950

7.8

2,160

121

824

3.3

958

49

724

2.9

806

43

582

2.3

633

36

728

2.9

838

47

1,270

5.1

1,430

92

824

3.3

872

48

514

2.1

550

36

1,385

5.5

1,540

76

1,430

5.7

1,590

72

3,580

14.3

3,750

192

3,050

12.2

3,210

156

1,520

6.1

1,580

95

1,380

5.5

1,460

87

390

1.6

410

25

1,740

7.0

1,910

92

1,930

7.7

2,130

116

1,200

4.8

1,320

72

25,021

100.0

27,147

1,463(Note 1)Acquisition price does not include acquisition expenses, consumption tax, etc.
Properties acquired in 3rd(Note 2)“Ratio” is calculated on an acquisition price basis, rounded to the first decimal place.
Fiscal Period(Note 3)“Appraisal Value” is the value with July 31, 2016 as the date of value.
(Note 4)“Appraisal NOI” is rounded down to the nearest million yen.
(Note 5)Message Co., Ltd. became a consolidated subsidiary of Sompo Japan Nipponkoa Holdings, Inc. on March 7, 2016 and changed its company name to Sompo Care Message Inc. on July 1, 2016. Sompo Japan
Nipponkoa Holdings, Inc. changed its company name to Sompo Holdings, Inc. on October 1, 2016. The same shall apply hereinafter in this document.

16

4-2. Portfolio List
Occupancy Rate By Property
Property Name
AQUAMARINE Nishinomiyahama
Bonsejour Chitose-funabashi
Bonsejour Hino
Bonsejour Musashishinjo
Medical Rehabilitation Home
Bonsejour Hadanoshibusawa
Medical Rehabilitation Home
Bonsejour Komaki
Bonsejour Yotsugi
Medical Bonsejour Itami
ASHEIM Higarigaoka
ASHEIM Bunkyohakusan
SOMPO CARE
La vie Re Machidaonoji
SOMPO CARE
La vie Re Azaminio
SAWAYAKA Tachibanakan
SAWAYAKA Mekarikan
SAWAYAKA Tagawakan
GOOD TIME HOME Fudo-mae
Sompo no ie S Awajiekimae
Sompo no ie S Kobekamisawa

合計

Number of Rooms Resident Capacity(rooms)(people)

90
42
56
46
100
123
61
62
83
50
163
145
104
95
60
61
137
85
1,563

100
47
58
49
101
166
65
64
89
52
169
145
104
95
60
67
137
85
1,653

Occupancy Rate
(%)

97.0
92.9
89.3
89.1
88.0
92.7
93.4
95.2
95.5
88.5
65.1
65.5
97.1
97.9
96.7
88.1
94.2
76.5

Date ofFigures

SourceJune 2016

Disclosure statement

Jan.2016 Independent survey (Note 1)
Jan.2016 Independent survey (Note 1)
Jan.2016 Independent survey (Note 1)
Jan.2016 Independent survey (Note 1)
Jan.2016 Independent survey (Note 1)
Jan.2016 Independent survey (Note 1)
Jan.2016 Independent survey (Note 1)
Disclosure statement
July 2016
Disclosure statement
July 2016
July 2016

Disclosure statement

July 2016

Disclosure statement

July 2016
July 2016
July 2016
July 2016-

Disclosure statement
Disclosure statement
Disclosure statement
Disclosure statement
Property website (Note 3)
Property website (Note 3)(Note 1)The occupancy rate is the occupancy rate based on a survey conducted by Tamura Planning & Operating Co., Ltd. (hereinafter referred to as“Tamura Planning”). Calculation of the occupancy rate by Tamura Planning is based on number of rooms, while calculation of the occupancy rate in theProperty Disclosure Statement of Important Issues is on a resident capacity basis. Accordingly, the Property Disclosure Statement of Important Issues
and actual figures may differ.
(Note 2)The number of rooms as serviced housing for the elderly is 136 rooms. The same shall apply hereinafter in this document.
(Note 3)The occupancy rate is the occupancy rate estimated by the asset management company based on the number of rooms as at the end of July
2016 disclosed on the property website. Accordingly, it may differ from the actual occupancy rate.

17

Properties acquiredin 3rd Fiscal Period

5. Operator List

Operator NameFoundedNumber of
Facilities
underManagement(Note 1)

Public Listing

Remarks

Benesse Style Care
Co., Ltd.

Sept.1995

295

Consolidated subsidiary of Benesse Holdings,
Inc., which is listed on the TSE First Section

The company operates seven brands in Tokyo, Osaka, Nagoya, andelsewhere in Japan. The brands are mainly mid- to high-end, such as
Bonsejour and GRANDA.

Sompo Care Next
Inc.

Nov. 1992

116

Consolidated subsidiary of Sompo Holdings,
Inc., which is listed on the TSE First Section

The company mainly operates paid nursing homes with care service
for the elderly under the Sompo Care La vie Re brand, mainly in the
Greater Tokyo Area. Formerly, Watami No Kaigo Co., Ltd.

24

Consolidated subsidiary of SHIPHEALTHCARE HOLDINGS, INC., which islisted on the TSE First Section

The company is a company engaged in the nursing care business that
undertakes the Lifecare Business of SHIP HEALTHCARE HOLDINGS, INC.
(all 67 facilities) together with GREEN LIFE HIGASHI NIHON Inc. andother companies.
The company operates low-price facilities with no upfront entrance
fees under the SAWAYAKA brand in Fukuoka Prefecture andelsewhere in Japan.

GREEN LIFE Inc.

May 1994

Sawayaka Club Co.,Ltd.

Dec. 2004

67

Consolidated subsidiary of UCHIYAMAHOLDINGS Co., Ltd., which is listed on the
TSE First Section

AS PARTNERS Co.,
Ltd.

Nov. 2004

14

Not publicly listed

The company operates paid nursing homes and day service facilities
under the ASHEIM brand in the Greater Tokyo Area.

Not publicly listed

The company operates paid nursing homes under the GOOD TIMEHOME brand in Tokyo. Including the facilities of SOUSEI JIGYOUDAN
Co., Ltd., the parent company, the company operates 31 facilities.
(Note 2)

・Listed on the TSE JASDAQ Market
・Consolidated subsidiary of Sompo Holdings,
Inc., which is listed on the TSE First Section

The company operates mid- to low-end paid nursing homes under the
Sompo no ie brand and serviced housing for the elderly under the
Sompo no ie S brand, mainly in Tokyo, Osaka, Nagoya, and also
elsewhere in Japan. Formerly, Message Co., Ltd.

JAPAN LIFEDESIGN
Inc.
Sompo Care
Message Inc.

Apr. 2004
May 1997

３
334(Note 1)“Number of Facilities under Management” is obtained from the kessan tanshin (financial report) for the first quarter of fiscal year ending March 2017 ofBenesse Holdings, Inc. in the case of Benesse Style Care Co., Ltd., and each company’s website (as at the end of July 2016) in the case of Sompo Care Next Inc.,
GREEN LIFE Co., Ltd., Sawayaka Club Co., Ltd., AS PARTNERS Co., Ltd., JAPAN LIFEDESIGN Inc. and Sompo Care Message Inc.
(Note 2)The number of facilities of SOUSEI JIGYOUDAN Co., Ltd. is obtained from its website (as at the end of July 2016).

18

IV. External Growth Strategy

19

1. Road Map to External Growth
Medium-Term Target Asset Size
Aim for 50 billion yen in 3 years after the IPO and 100 billion yen in 5 years after the IPO (Note 1)

First refusal rights obtained (Note 2)

Further
expansion ofasset size

14 properties / Approx. 33.6 billion yen (Note 3)

Acquired
Bonsejour Yotsugi
Medical Home Bonsejour Itami

23.6
billion yen

25.0
billion yen

50.0
billion yen

IPO（March 2015）

1year later(March 2016）

3 year later

100.0
billion yen
5 year later(Note 1)The targets announced in the financial results briefing materials dated March 16, 2016. Future events, market environment, etc. may lead to these not being achieved.
(Note 2)The properties acquired by sponsor-arranged bridge SPCs (HC Vega and HC Altair). These are not assets that HCM has decided to acquire and there is also no guarantee that HCM will be able toacquire these in the future.
(Note 3)The appraisal values as at the end of August 2014 obtained by the bridge SPCs.

20

2. Pipeline Status
Properties Held by Bridge SPCs (First Refusal Rights Obtained)

Property nameSHIP Senri Building

Kobe Gakuentoshi Building

GRANDA Tsuruma Yamato

Operator (Note1)

GREEN LIFE

GREEN LIFE

Benesse Style Care

Toyonaka-shi, Osaka

Kobe-shi, Hyogo

Yamato-shi, Kanagawa

Paid nursing home with care service
Hospital

Paid nursing home with care service
ClinicPaid nursing home with care service

Location
Major Facilities

Property Name

Operator

Location

Type of Facility

Moriguchisata Lagale

GREENLIFE

Moriguchi-shi, Osaka

Paid nursing home with care service

Hapine Kobe Uozaki Ⅱ

GREENLIFE

Kobe-shi, Hyogo

Paid nursing home with care service

SOMPO CARE La vie Re Hama-Kawasaki

Sompo Care Next

Kawasaki-shi, Kanagawa

Paid nursing home with care service

Hanakotoba Shin-Yokohama

Yuuai

Yokohama-shi, Kanagawa

Paid nursing home with care service

Hanakotoba Shin-Yokohama Ⅱ

Yuuai

Yokohama-shi, Kanagawa

Paid nursing home with care service

Hanakotoba Miura

ManyouMiura-shi, Kanagawa

Paid nursing home with care service

Hanakotoba Odawara

ManyouOdawara-shi,Kanagawa

Paid nursing home with care service

Hanakotoba Minami

ManyouYokohama-shi, Kanagawa

Paid nursing home with care service

LONGLIFE Kobe Aotani

JAPAN LONGLIFE

Kobe-shi, Hyogo

Paid nursing home with care service

Verge Minowa

Verge

Takasaki-shi, Gunma

Paid nursing home with care service

Verge Hotaka

Verge

Kawaba-mura, Tone-gun, Gunma

Paid nursing home with care service(Note 1)“Operator” is the main tenant.
(Note 2)The properties for which first refusal rights have been obtained are not assets that HCM has decided to acquire and there is also no guarantee that HCM will be able to acquire these in the
future.

21

3. Action Strategy
Build Structure Pooling Quality Properties and Information by Utilizing Extensive Networks
Asset management company’s(HAM’s)own network

Sponsors’ and supporting companies’ networks

Facilities and housing
for the elderly(properties in operation)

Facilities and housing
for the elderly(after new development/construction)

Utilization of warehousing function
and first refusal rights(Note)HAM stands for Healthcare Asset Management Co., Ltd.

22

Medical service-related
facilities

4. Action Case Examples
Case Examples of Actions for Expansion of Asset Size
Case Example 1: Development Property

Operator A

Captured the needs for new development of
paid nursing homes of operator A.

Lease agreement

Facility
development

Partnered with operator A and developer.
Held (warehousing) by sponsor B
after completion of construction
for the period until occupancy becomes stable.

Developer

Sponsor B

ＨC
MFirst refusal rights
to be obtained

Case Example 2: Property in Operation
The asset management company captured the operator’s paid nursing home (extension underway) liquidity needs.
Acquired (warehousing) by sponsor C after completion of construction of the extension.
Case Example 3: Property in Operation
Paid nursing home held by leading regional medical corporation acquired (warehousing) by sponsor D. Acquisition of
hospital real estate held by the medical corporation also under consideration.

23

Ⅴ Appendix

24

1. Environment Surrounding Healthcare Facilities (Facilities and Housing for the Elderly)Market Size of Facilities and Housing for the Elderly (estimated in December 2015)
Estimated Sales

Number of Rooms

23％

21％
Paid nursing home/for people
that need nursing care
Paid nursing home/for
independent residents
Serviced housing for the elderly

２％

6,412.3

billion yen

７％

２％

1,779

thousand rooms

Group home
Three types of long-term careinsurance facilities (Note)

12％

56％

Paid nursing home/for people
that need nursing care
Paid nursing home/for
independent residents
Serviced housing for theelderly

10％Group home
Three types of long-term careinsurance facilities (Note)

11％

56％

(Note) This refers to Facilities Covered by Public Aid Providing Long-Term Care to the Elderly (intensive care homes for the elderly), Long-Term Care Health Facilities (nursing and health facilities for the elderly) and Sanatorium Medical Facilities for the Elderly Requiring Long-Term Care.

Registration Status of Serviced Housing for the Elderly

Supply Status and Supply Rate of Paid Nursing Home
Room for people that need nursing care
Room for independent residents(thousandroom)

Supply rate of room for independent residents (among population of 75 years-old or older)
Supply rate of room for people that need nursing care (among population of 75 years-old or older)

450
400

1.9%

350
300
250
200
150
100
50

1.7%
1.3%

31
163
0.2%

1.4%

32
184
0.2%

1.5%

32
209
0.2%

33
244

0.2%

34
281

0.2%

2.0%

34
313

0.2%

2.2%

34
347

0.2%

(building)

2.3%

34
377

0.2%

0

2.5%
2.0%

6,000

1.5%

4,000

1.0%

3,000

0.5%

2009

2010

2011

2012

2013

2014

5,885

140,000
100,000
80,0002,772

60,00040,0003,448

20,000112
2011

160,000
120,000

82,809

0

2015

5,160

5,543

180,000

4,205

2,000
1,000

161,517130,447

200,000

187,170

178,173

Numbe
r of
rooms

5,000

0.0%
2008

（Rooms）

7,000

0
2012

2013

2014

Jun-15

Dec-15

Source: Prepared by the asset management company based on “Registration Status of Serviced Housing
for the Elderly” by the Ministry of Land, Infrastructure, Transport and Tourism and KPMG’s materials.

252-1. Environment Surrounding Healthcare Facilities (Medical Service-Related Facilities)
About Regional Healthcare Vision
It is decided that prefectural governments must establish “Regional Healthcare Vision” for each secondary medical area by March 2018 due to the enactment of“Act for Securing Comprehensive Medical and Long-term Care in the Community” in the 2014 ordinary Diet session.
••“Regional Healthcare Vision” is to estimate and stipulate medical demand and required number of beds in 2025 for each medical function in order to promote functional differentiation andcoordination of hospital beds to prepare for 2025.
Ministry of Health, Labor and Welfare established “Guideline” that stipulates estimating methods in March 2015 for prefectural governments to start formulating “Regional Healthcare Vision.”

Medical institutions(Content of “Regional Healthcare Vision”)
1. Medical demand and required number of hospital beds in 2025
・Estimate for each of the four functions, which are advanced acute stage,acute stage, recovery stage and chronic stage
・Estimate for each area of the vision within prefecture (in principal,
secondary medical area)
2. Measures to realize medical provision system to aim for.
(Example) Preparation of facilities, securing and training of medical staff,
etc. to promote differentiation and coordination of medical functions.

(Hospital Ward A)
Advanced acutestage function(Functions of respective
hospital is not clear)

Select medical
function voluntarily(Hospital Ward B)
Acute stage function(Hospital Ward C)
Recovery stage function(Hospital Ward D)
Chronic stage function

Differentiation and coordination of functions to be discussed and adjusted at“Regional Healthcare Vision Coordination Council”

Prefecture
government

Report current status
and future direction of
medical functions

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

26

Source: “Regional Healthcare Vision” by the Ministry of Health, Labor and Welfare

2-2. Environment Surrounding Healthcare Facilities (Medical Service-Related Facilities)
Case of Tokyo
Image of reform which national government sets for 2025

Current picture<Nationwide>
One
for
Seven

357,569
beds<Tokyo>41.3％

Hospital’s general wards

One
for
ten

210,566
beds

24.3％

One
For
thirteen

26,926
beds

3.1％

56.7％

Advanced acute stage
180,000 beds

*Excluding 1,301 beds underprovisional measures
14,793
beds

17.7％

3,431
beds

4.1％

One
For
fifteen54,301
beds

6.3％

3,931
beds

Hospital’srecuperation
wards

216,653
beds

25.0％

13,998beds

240,000 community-based hospital beds

*Excluding 23,022 beds underprovisional measures

47,338beds<Nationwide>

4.7％

16.8％

18.3％
17,519beds

General acute stage
Approx. 350,000 beds

<Tokyo>
13.7％

26.7％

Subacute stage, etc.
Approx. 260,000 beds

19.8％

Long-term recuperation
280,000 beds

21.4％

13,140beds

25,549beds

18,979beds

20,439beds

Source: “Issues in Establishing and Realizing Regional Healthcare Vision” by the Bureau of Social Welfare
and Public Health, Tokyo Metropolitan Government27

3-1. Detailed Portfolio List
PropertyName

AQUAMARINE
Nishinomiyahama

Bonsejour Chitosefunabashi

Bonsejour Hino

BonsejourMusashi-shinjo

Medical Rehabilitation
Home Bonsejour
Hadanoshibusawa

Medical Rehabilitation
Home Bonsejour Komaki

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

3-1, Shiroyama, Komaki-shi, Aichi

Musashi-Shinjo Station on JR
Mogusaen Station on Keio Line
Nambu Line

Shibusawa Station on Odakyu
Odawara Line

Nishinomiya Station on
Nearest Station
Hanshin Main Line

Chitose-funabashi Station on
Odakyu Odawara Line

Ajioka Station on Meitetsu
Komaki Line
Jinryo Station on JR Chuo MainLine

Construction
Completion

May 2007

March 1988

May 1990

February 1985

July 1991

March 1991

Site area

2,587.93 ㎡

1,020.92㎡

2,211.28 ㎡

1,233.49 ㎡

2,588.04 ㎡

8,229.85 ㎡

Leasable area

5,157.26 ㎡
Paid nursing homewith care service

2,342.17 ㎡
Paid nursing homewith care service

1,984.17 ㎡
Paid nursing homewith care service

1,710.43 ㎡
Paid nursing homewith care service

3,435.79 ㎡
Paid nursing homewith care service

8,858.49 ㎡

RC,５F

RC, B1F/6F

RC, 3FRC, 4FRC, 5F

SRC/RC/S, 10F

90 rooms, 100 people

42 rooms, 47 people

56 rooms, 58 people

46 rooms, 49 people

100 rooms, 101 people

123 rooms, 166 people

GREEN LIFE

Benesse style Care

Benesse style Care

Benesse style Care

Benesse style Care

Benesse style Care

21 years

10 years

10 years

10 years

11 years

11 years

121 million yen

49 million yen

43 million yen

36 million yen

47 million yen

92 million yen

Cap Rate (Note 2)

5.4％

4.5％

4.9％

5.2％

5.1％

5.6％

Appraisal Value(Note 2)2,160 million yen

958 million yen

806 million yen

633 million yen

838 million yen

1,430 million yen

Acquisition Price

1,950 million yen

824 million yen

724 million yen

582 mullion yen

728 million yen

1,270 million yen

TypeStructure/No. of floor(Note1)
No. of Rooms/Resident Capacity
Operator
Remaining years oflease agreement(Note 2)
Appraisal NOI(Note 2)

(Note 1) 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 2) Figures in Remaining years of lease agreement, Appraisal NOI, Cap Rate and Appraisal Value are as of July 31, 2016.

28

Housing type paid nursing home

3-2. Detailed Portfolio List
PropertyName

ASHEIM Hikarigaoka

ASHEIM Bunkyohakusan

Location

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

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

Nearest Station

Shakujii-koen Station on Seibu
Ikebukuro Line

Sompo CARE La vie Re
Machidaonoji

Sompo Care La vie Re
AzaminoSAWAYAKA
Tachibanakan

1612, Onojimachi, Machida-shi, 19-24, Ayumigaoka, Tsuzuki-ku, 173-15, Oaza Ryugeji, HakataTokyo
Yokohama-shi, Kanagawa
ku, Fukuoka-shi, Fukuoka

Keio Nagayama Station on Keio
Hakusan Station on Toei Subway Sagamihara Line
Odakyu Nagayama Station on
Mita Line
Odakyu Tama Line

Nakagawa Station on Yokohama Sasahara Station on JR
Municipal Subway Blue Line
Kagoshima Honsen LineSAWAYAKA
Mekarikan

1-9-15, Okubo, Moji-ku,
Kitakyushu-shi, Fukuoka
Mojiko Station on JR
Kagoshima Honsen Line

Construction
Completion

March 2006

February 2007

October 2007

March 2004

October 2005

November 2005

Site area

2,868.46 ㎡

540.29 ㎡

7,404.13 ㎡

2,748.64 ㎡

3,359.66 ㎡

3,758.26 ㎡

Leasable area

3,628.60 ㎡

2,494.78 ㎡

7,720.17 ㎡

5,789.25 ㎡

5,652.94 ㎡

4,720.46 ㎡

TypePaid nursing homewith care service

Paid nursing homewith care service

Paid nursing homewith care service

Paid nursing homewith care service

Paid nursing homewith care service

Paid nursing homewith care service

RC, 3FRC, ８F

RC, B1F/6F

RC, BC1F/5F

RC, BC１F/６F

RC, ４F

83 rooms, 89 people

50 rooms, 52people

163 rooms, 169 people

145 rooms, 145 people

104 rooms, 104 people

95 rooms, 95 people

AS PARTNERS

AS PARTNERS

Sompo Care Next

Sompo Care Next

Sawayaka Club

Sawayaka Club

18 years

11years

11years

11years

12 years

12 years

76 million yen

72 million yen

192 million yen

156 million yen

95 million yen

87 million yen

Cap Rate (Note 2)

4.9%

4.5%

5.0%

4.7%

5.6%

5.7%

Appraisal Value(Note 2)

1,540 million yen

1,590 million yen

3,750 million yen

3,210 million yen

1,580 million yen

1,460 million yen

Acquisition Price

1,385 million yen

1,430 million yen

3,580 million yen

3,050 million yen

1,520 million yen

1,380 million yen

Structure/No. of floor(Note1)
No. of Rooms/Resident Capacity
Operator
Remaining years oflease agreement(Note 2)
Appraisal NOI(Note 2)

(Note 1) 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 2) Figures in Remaining years of lease agreement, Appraisal NOI, Cap Rate and Appraisal Value are as of July 31, 2016.

29

3-3. Detailed Portfolio List
Property
Name

SAWAYAKA
Tagawakan

GOOD TIME HOME
Fudo-mae

Location393-1, Oaza Ita, Tagawa-shi,
Fukuoka

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

Tagawa Ita Station on JR Hita
Hikosan Line

Fudo-mae Station on Tokyu
Meguro Line

Nearest Station

Sompo no ie S
Awajiekimae

Sompo no ie S
Kobekamisawa

Bonsejour Yotsugi

Medical home
Bonsejour Itami

3-20-26, Awaji,
8-2-5, Kamisawadori, Hyogo-ku,
3-1-11, Higashiyotsugi,
Higashiyodogawa-ku, Osaka-shi,
1-2-25, Chuo, Itami shi, Hyogo
Kobe-shi, Hyogo
Katsushika-ku, Tokyo
Osaka
Kamisawa Station on Kobe
Awaji Station on Hankyu Railway
Yotsugi Station on Keisei Railway Itami Station on Hankyu
Municipal Subway SeishinKyoto Line
Oshiage Line
Railway Itami Line
Yamate Line

Construction
Completion

January 2006

March 1992

June 2009

June 2009

March 1989

March 1989

Site area

4,300.90 ㎡

1,206.60 ㎡

1,251.26 ㎡

743.22 ㎡

1,136.46㎡

1,976.11㎡

Leasable area

2,366.20 ㎡

3,400.20 ㎡

5,658.53 ㎡

3,626.25 ㎡

1,962.89㎡

2,129.87㎡

Type

Paid nursing homewith care service

Paid nursing homewith care service

Paid nursing homewith care service

Housing type paid nursing
home

RC, ３F

RC, BC１F/５F

RC, 12F

S, ９F

RC, ５F

SRC, 11F

60 rooms, 60 people

61 rooms, 67 people

137 rooms, 137 people

85 rooms, 85 people

61 rooms, 65 people

62 rooms, 64 people

Sawayaka ClubJAPAN LIFE DESIGN

Sompo Care Message

Sompo Care Message

Benesse Style Care

Benesse Style Care

12years

10 years

18 years

18 years

９ years

11 years

25 million yen

92 million yen

116 million yen

72 million yen

48 million yen

36 million yen

Cap Rate (Note 2)

5.8%

4.5%

5.3%

5.3%

4.8%

5.2%

Appraisal Value(Note 2)410 million yen

1,910 million yen

2,130 million yen

1,320 million yen

872 million yen

550 million yen

Acquisition Price

390 million yen

1,740 million yen

1,930 million yen

1,200 million yen

824 million yen

514 million yen

Structure/No. of floor(Note1)
No. of Rooms/Resident Capacity
Operator
Remaining years oflease agreement(Note 2)
Appraisal NOI(Note 2)Serviced housing for the elderly Serviced housing for the elderly(Note 1) 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 2) Figures in Remaining years of lease agreement, Appraisal NOI, Cap Rate and Appraisal Value are as of July 31, 2016.

30

4-1. Overview of Operators
Headquarters
location
Representative

GREEN LIFE Co., Ltd. considers its nursing homes “an extension of the family,” and whereresidents can enjoy a peaceful, safe, and comfortable lifestyle. As a company engaged in longterm care business under SHIP HEALTHCARE HOLDINGS, INC. and group of companies
including GREEN LIFE HIGASHI NIHON Inc., GREEN LIFE Co., Ltd. operates facilities nationwide.

Benesse Style Care Co., Ltd. operates seven brands in Tokyo, Osaka, Nagoya, and elsewhere in
Japan. The brands are mainly mid- to high-end, such as Bonsejour and GRANDA, thus allowing
residents to select “a lifestyle that suits them.”

GREEN LIFE Co., Ltd
3-20-8, Kasuga, Suita-shi, Osaka
Representative Director and President Keiji Arai

FoundedMay 1994

Capital stock

50 million yen

Listed or unlisted Unlisted
Parent company

SHIP HEALTHCARE HOLDINGS, INC(TSE 1st Section, Code No. 3360)

Headquarters
location

Shinjuku Monolith Building 5th floor, 2-3-1,
Nishi-Shinjuku, Shinjuku-ku, Tokyo

Representative

Representative Director and President Shinya Takiyama

Founded

September 1995

Capital stock

100 million yen

Listed or unlisted

Unlisted

Parent company

Benesse Holdings, Inc. (TSE 1st Section, Code No. 9783)

Benesse Style Care Co., Ltd.

AS PARTNERS Co., Ltd.
AS PARTNERS Co., Ltd. operates paid nursing homes and day service facilities under the
ASHEIM brand in the Greater Tokyo Area, based on the philosophy of “a rich life in your own
way, with your own strength until the end.”

Headquarters
location

Toho Twin Bldg. 6F, 1-5-2, yurakucho, Chiyoda-ku, Tokyo

Representative

Representative Director and President Takeshi Uemura

FoundedNovember 2004

Capital stock

40 million yen

Listed or unlisted Unlisted

JAPAN LIFE DESIGN Inc.
JAPAN LIFEDESIGN Inc. operates paid nursing homes under the GOOD TIME HOME brand inTokyo. Including the facilities of the parent company SOUSEI JIGYOUDAN CO., Ltd. and its
subsidiaries, JAPAN LIFEDESIGN Inc. operates 31 facilities (resident capacity of 2,305 people).

31

Headquarters
location

Akasaka Enoki-zaka Mori Building 6th floor, 1-7-1,
Akasaka, Minato-ku, Tokyo

Representative
FoundedCapital stock
Listed or unlisted
Headquarters
location

Representative Director and President Shoetsu Ito
April 2004
100 million yen
Unlisted
SOUSEI JIGYODAN CO., Ltd.

4-2. Overview of Operators
Sompo Care Next Inc.

Sompo Care Next Inc. mainly operates paid nursing homes with service under the Sompo Care
La vie Re brand and other brands, mainly in the Greater Tokyo Area, under the concept that“homes exist solely for the happiness of their residents.

Headquarters
location

Shinagawa Seaside east tower 12th floor, 4-12-8,
Higashishinagawa, Sinagawa-ku, Tokyo

Representative

President and Chief Executive Officer Ken Endo

FoundedNovember 1992

Capital stock

5,095 million yen

Listed or unlisted

Unlisted

Parent company

Sompo Holdings, Inc. (TSE 1st Section, Code No. 8630)

SAWAYAKA Club., Ltd.

Sawayaka Club Co., Ltd. operates low-price facilities with no upfront entrance fees under the
SAWAYAKA brand, in Fukuoka Prefecture and elsewhere in Japan, based on the belief in
repaying older generations that gave their all for the development of Japan.

Sompo Care Message Inc. aims to offer an environment where the elderly can continue livingin the area they are used to, even once they require nursing care. Sompo Care Message Inc.
operates mid- to low-end facilities under the Sompo no ie and Sompo no ie S brands mainly inTokyo, Osaka, Nagoya, and also elsewhere in Japan.

Headquarters
location
Representative

Representative Director and President Bunji Uchiyama

FoundedDecember 2004

Capital stock

200.8 million yen

Listed or unlisted

Unlisted

Parent company

UCHIYAMA HOLDINGS Co., Ltd. (TSE 1st Section, Code No. 6059)

Headquarters
location
Representative

Sompo Care Message Inc.
522-1, Nishiichi, Minami-ku, Okayama-shi, Okayama
President and Chief Executive Officer Tetsuya Kikui

FoundedMay 1997

Capital stock

3,925 million yen

Listed or unlisted

Listed on TSE JASDAQ (Code No. 2400)

Parent company

322-10-10, Kumamoto, Kokurakita-ku, Kitakyushu-shi, Fukuoka

Sompo Holdings, Inc. (TSE 1st Section, Code No. 8630)

5. Status of Unitholders
List of Top Unitholders (as of the end of July 2016)
Name

Number ofinvestment units
owned(units)

Ownership ratio(%) (Note)

10,532

8.74

Trust & Custody Services Bank Ltd.
(Securities Investment Trust Account)

7,002

5.81

NEC Capital Solutions Limited

4,000

3.31

SHIP HEALTHCARE HOLDINGS INC.

4,000

3.31

Sumitomo Mitsui Banking Corporation

4,000

3.31

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

3,786

3.14

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

3,083

2.55

Meiji Yasuda Life Insurance

1,322

1.09

STATE STREET BANK AND TRUST COMPANY
505001

1,050

0.87

Numazu Shinkin Bank

1,000

0.82

Yonezawa Shinkin Bank

1,000

0.82

40,775

33.83

Japan Trustee Services Bank Ltd. (Trust Account)

Total(Note) Ownership ratio is rounded down to the second decimal place.

33

By Number of Unitholders

Domestic
Financial companies
institutions
２%
１%

Foreigncompanies/individuals

０%

Individuals, etc.
97%

By number of Owned Units
Domestic
Companies
12%

Financial
institutions
36%

Foreigncompanies/individuals
３%

Individuals, etc.
49%

6. Overview of Unitholder Special Benefit Plan

GREEN LIFE Co.,Ltd.

AS PARTNERS co., Ltd.

Details of Special Benefits

Details of Special Benefits
・Discount upfront entrance fees
・Discount monthly fee(discount management fees)
・Free trial move-in (four-day and three-night)
・Tour with free lunch・Free trial move-in(two-day and one-night with meals)
・Tour with free lunch

Sawayaka Club Co., Ltd.

Sompo Care Next inc.内Details of Special Benefits

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

・Discount advance payment or monthly fee
・Tour with free lunch

JAPAN LIFE DESIGN Inc.

Benesse Senior Support Co., Ltd

Details of Special Benefits

Details of Special Benefits

・Free trial move-in(two-day and one-night with meals)
・Discount upfront entrance fees

・Free consultation on nursing care

(Note) Details of special benefits are for people who are unitholders as of the end of 3rd fiscal period and are subject to change.

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7. Information related to Investment Units

Unit Price, TSE REIT Index and Trade Volume（Unit）（Yen）

115,000

1,600

1,400
110,000
1,200

1,000

105,000

800
100,000

600

400
95,000200

90,0002/1/160

3/1/16
Trade volume of HCM

4/1/16HCM

5/1/16

6/1/16

TSE REIT Index (figure relative to HCM’s unit price)35

7/1/16

8. HCM’s Network

Sponsor
Sumitomo Mitsui Finance and Leasing
SMBC Friend Securities
GinsenMuromachi Building
Yoei
Kobe Tochi Tatemono

Sponsor Support Agreement

Asset Custody Company
Administrative Agent
Administrator of the Investors’Registry

Sumitomo Mitsui
Trust BankSMBC Trust BankRISA Partners
Orion, etc.

Accounting Auditor

PricewaterhouseCoo
pers Aarata LLC

Pipeline Support
Agreement
AssetManagement

Asset Management Company

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・Provide professional know-how
・Provide human resources
・Provide property information, etc.

9. Profile of Asset Management Company
Trade name

Healthcare Asset Management Co., Ltd.

Location

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

FoundedNovember 28, 2013

Capital stock

150 million yen

President and Representative

Seiji Yoshioka

Major shareholders

SHIP HEALTHCARE HOLDINGS, INC. (33.3%)
NEC Capital Solutions Limited (33.3%)
Sumitomo Mitsui Banking Corporation (5.0%)
Sumitomo Mitsui Finance and Leasing Company, Limited (4.8%)
SMBC Friend Securities Co., Ltd. (4.8%)
Registered as a financial service provider (Director of Kanto Local Finance Bureau (Kinsho) No. 2815)
License as a building lots and buildings business operator (Governor of Tokyo (1) No. 96339)

Registration, license, etc.

License as an entrusted agency services for transactions (Minister of Land, Infrastructure, Transport and Tourism
No. 85)General Meeting of Shareholders
Audit & Supervisory Board Member
Board of Directors
Management Committee

Compliance Committee

Representative Director
Internal Audit Office
Investment Department

Compliance Office

Asset Management Department

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Financial & Administration Department

10. Profile of Major Sponsors
SHIP HEALTHCARE HOLDINGS, INC.

With a stated mission to “create an environment of people protecting life,” SHIPHEALTHCARE HOLDINGS, INC. carries out a wide-range of nursing care and medical
service-related businesses in four domains on a group basis: the Lifecare Business, inwhich it operates paid nursing homes; the Total Pack Produce Business, in which itoffers comprehensive, optimal solution services to meet the needs for hospitallaunch/relocation and building extension/renovation of medical institutions; theMedical Supplies Business, in which it sells medical supplies and other products; aswell as the Dispensing Pharmacy Business.

As NEC Group’s comprehensive financial services company, in addition to its mainstay
leasing business and ICT-related service business, NEC Capital Solutions Limited is
engaged in investments, loans, and advisory services in the business domains of“companies,” “credits,” and “assets,” through RISA Partners, Inc., its subsidiary which
has a track record in the fund business, etc.

As the core company of the Sumitomo Mitsui Financial Group, it possesses one of thestrongest sales foundations in Japan, has an ability to execute strategies quickly, andis capable of providing financial services through its influential group companies.

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Headquarters
location

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

Representative

Chairman and CEO Kunihisa Furukawa
President and COO Hirotaka Ogawa

FoundedAugust 1992

Capital stock

15,553.01 million yen

Sales306.8 billion yen when consolidated (fiscal period
ended March 2016)

NEC Capital Solutions

Headquarters
location

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

Representative

President Masahiro Annaka

FoundedNovember 1978

Capital stock

3,776.88 million yen

Sales

202.6 billion yen when consolidated (fiscal period
ended March 2016)

Headquarters
location

Sumitomo Mitsui Banking
1-1-2 Marunouchi, Chiyoda-ku, Tokyo

Representative

President Takeshi Kunibe

Capital stock

1,770.9 billion yen

Disclaimer
This presentation material contains forward-looking statements including forecasts,
outlooks, goals and plans. These statements are based on the information available asof the date when this material is prepared and incorporate certain subjective
assumptions about uncertain factors that may affect future results. Accordingly, thesestatements are inherently not guarantees of future performance and actual results may
differ materially.
The opinions, outlooks and estimates contained in this material reflect our view andjudgment based on information as of the date when this material is prepared andinvolve risks and uncertainties.
No guarantee is made as to the accuracy, completeness, appropriateness and validityof information contained in this material. It is not promised that information containedin 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 decisionmust be made based on your own judgment and responsibility.

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