Healthcare & Medical Investment
Corporation
Independent Auditor’s Report
January 31, 2024

Independent Auditor’s Report
To the Board of Directors of Healthcare & Medical Investment Corporation
The Audit of The Financial Statement
OpinionWe have audited the financial statements of Healthcare & Medical Investment Corporation (theCompany), which comprise the balance sheet as at January 31, 2024, and the statement of income,statement of unitholders' equity, statement of cash distributions and statement of cash flows for the six
months period then ended, and notes to financial statements and supplementary schedules.
In our opinion, the accompanying financial statements present fairly, in all material respects, thefinancial position of the Company as at January 31, 2024, and its financial performance and its cash
flows for the six months period then ended in accordance with accounting principles generally
accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the
Audit of the Financial Statements section of our report. We are independent of the Company inaccordance with the ethical requirements that are relevant to our audit of the financial statements inJapan, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis forour opinion.
Other Information
The other information comprises the information included in the semi-annual report, but does notinclude the financial statements and our auditor’s report thereon. Management is responsible for theother information. In addition, those charged with governance are responsible for overseeing theCompany’s reporting process of the other information.
Our opinion on the financial statements does not cover the other information and we do not express
any form of assurance conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the otherinformation and, in doing so, consider whether the other information is materially inconsistent withthe financial statements or our knowledge obtained in the audit or otherwise appears to be materially
misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of thisother information, we are required to report that fact.
We have nothing to report in this regard.

Responsibilities of Management and Those Charged with Governance for the Financial
Statements
Management is responsible for the preparation and fair presentation of the financial statements inaccordance with accounting principles generally accepted in Japan, and for such internal control as
management determines is necessary to enable the preparation of financial statements that are freefrom material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing the Company’s ability
to continue as a going concern and disclosing, as applicable, matters related to going concern.
Those charged with governance are responsible for overseeing the Company’s financial reporting
process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s reportthat includes our opinion. Reasonable assurance is a high level of assurance, but is not a guaranteethat an audit conducted in accordance with auditing standards generally accepted in Japan will always
detect a material misstatement when it exists. Misstatements can arise from fraud or error and areconsidered material if, individually or in the aggregate, they could reasonably be expected to influence
the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. We also:









Identify and assess the risks of material misstatement of the financial statements, whether due tofraud or error, design and perform audit procedures responsive to those risks, and obtain audit
evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of notdetecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the overrideof internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, while the purpose of the financial statement
audit is not to express an opinion on the effectiveness of the Company’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
Conclude on the appropriateness of management’s use of the going concern basis of accounting
and, based on the audit evidence obtained, whether a material uncertainty exists related to events
or conditions that may cast significant doubt on the Company’s ability to continue as a going
concern. If we conclude that a material uncertainty exists, we are required to draw attention in our
auditor’s report to the related disclosures in the financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up
to the date of our auditor’s report. However, future events or conditions may cause the Company
to cease to continue as a going concern.
Evaluate whether the presentation and disclosures of the financial statements are in accordancewith accounting principles generally accepted in Japan, the overall presentation, structure andcontent of the financial statements, including the disclosures, and whether the financial
statements represent the underlying transactions and events in a manner that achieves fairpresentation.

We communicate with management regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies in internal control that
we identify during our audit.
We also provide management with a statement that we have complied with relevant ethicalrequirements regarding independence, and to communicate with them all relationships and othermatters that may reasonably be thought to bear on our independence, and where applicable, actions
taken to eliminate threats or safeguards applied.
Fee-Related Information
In connection with our audit of the financial statements for the six months period ended January 31,
2024, the amounts of fees for the audit and the other services charged to the Company by
PricewaterhouseCoopers Japan LLC and other PwC Network firms are described in “3. Matters
Concerning Directors” included in “Overview of HCM”.
Interest required to be disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Company which is
required to be disclosed pursuant to the provisions of the Certified Public Accountants Act of Japan.

自動署名EL

自動署名Co1

Hideo Ohta

Shotaro Nara

Designated Engagement Partner
Certified Public Accountant

Designated Engagement Partner
Certified Public Accountant

April 25, 2024

18th Fiscal Period
Semi-Annual Reportfrom August 1, 2023 to January 31, 2024

Healthcare & Medical Investment Corporation

To Our Unitholders
We would like to express our sincere gratitude for your continued support.
We are pleased to report on the management status of Healthcare & Medical Investment Corporation (hereinafter,“HCM”) for the 18th fiscal period (August 1, 2023, to January 31, 2024).
For the fiscal period under review, HCM recorded operating revenue of 2,438 million yen, operating income of 1,254
million yen, ordinary income of 1,050 million yen, and net income of 1,049 million yen. As a result, distributions perunit were 3,235 yen (including distributions in excess of earnings). For the 19th fiscal period, distributions per unit of
3,235 yen (including distributions in excess of earnings) are forecast.
As of the end of the 18th fiscal period, the portfolio consisted of 48 properties with an acquisition price base of 79.2
billion yen. The total appraisal value rose to 89.5 billion yen, and unrealized gains expanded to 11.5 billion yen. There
were no rent reductions or payment deferrals, and the occupancy rate remained at 100%.
At the beginning of the 19th fiscal period, HCM acquired five elderly care facilities in Hokkaido and Osaka for 2.39
billion yen. The average appraisal NOI yield was 5.5%, the same level as the existing portfolio, expanding the portfolio
to 53 properties with a total acquisition price of 81.6 billion yen.
Ever since its listing, HCM has aimed to realize a society where all people can live vibrantly and with peace of mind
through its continuous investment in and stable ownership of facilities and housing for the elderly and healthcare
facilities such as medical service-related facilities, which are expected to see further growth in demand in line withthe continued aging of society, over the long-term.
Although the environment surrounding HCM is undergoing significant changes, such as high real estate prices andrising interest rates, we will strive to maximize unitholder value by investing in quality healthcare facilities to ensuresustainable growth of managed assets and stable earnings.
In the next fiscal period onward, we will continue to work to maximize unitholder value through continuous growthof our portfolio and securement of stable income based on fixed-rent long-term lease contracts with excellent
operators and by proactively leveraging the specialized capabilities and know-how in the areas of “nursing care andmedical services,” “fund management,” and “finance” with the support of our main sponsors, SHIP HEALTHCAREHOLDINGS, INC., NEC Capital Solutions Limited, and Sumitomo Mitsui Banking Corporation. We appreciate yourcontinued support and patronage.

Yuji Fujise

Seiji Yoshioka

Executive Director
Healthcare & Medical Investment Corporation

President & CEO
Healthcare Asset Management Co., Ltd.

Overview of Asset Management
1. Investment Performance of HCM
Operation Results and Financial Positions
By fiscal period
Operating revenue(millions of yen)
[Operating revenue from real
(millions of yen)estate leasing business]
Operating expenses(millions of yen)
[Operating expenses from real
(millions of yen)estate leasing business]
Operating income(millions of yen)
Ordinary income(millions of yen)
Net income(millions of yen)
Total assets(millions of yen)[Comparison with the previous(%)
fiscal period]
Net assets(millions of yen)[Comparison with the previous(%)
fiscal period]
Interest-bearing debts(millions of yen)
Unitholders' capital, net (Note 3)(millions of yen)
Total number of investment units(units)issued and outstanding
Net asset value (NAV) per unit(yen)
Total distributions(millions of yen)
Distributions per unit(yen)[Distributions of earnings per unit](yen)[Allowance for temporary(yen)difference adjustments per unit][Distributions in excess of earnings(yen)
per unit from other distributions]
Ratio of ordinary income to total(%)
assets (Note 4)[Annualized](%)
Return on equity (Note 4)(%)[Annualized](%)
Equity ratio at end of period (Note 4)(%)[Changes from the previous fiscal
period]Dividend payout ratio (Note 4)(%)
Other Reference Information
Number of operation days
(days)
Number of investment properties at(properties)
end of period
Depreciation(millions of yen)
Capital expenditures (Note 5)(millions of yen)
NOI (Net operating income) (Note 4)(millions of yen)
FFO (Funds from operation) (Note 4)(millions of yen)
FFO per unit (Note 4)(yen)
LTV (Loan to value) (Note 4)(%)

14th fiscal
period15th fiscal
period16th fiscal
period17th fiscal
period18th fiscal
periodFrom: Aug. 1 2021
To: Jan. 31 2022

From: Feb. 1 2022
To: Jul. 31 2022

From: Aug. 1 2022
To: Jan. 31 2023

From: Feb. 1 2023
To: Jul. 31 2023

From: Aug. 1 2023
To: Jan. 31 2024

2,080

2,371

2,632

2,438

2,438

2,080

2,371

2,427

2,438

2,438

1,007

1,105

1,178

1,170

1,184

701

784

801

820

832

1,072
913
913
68,778

1,265
1,101
1,100
80,357

1,453
1,279
1,278
81,243

1,268
1,068
1,068
80,789

1,254
1,050
1,049
80,714

(0.2)

16.8

1.1

(0.6)

(0.1)

32,86738,80038,96838,61738,536

(0.3)

18.1

0.4

(0.9)

(0.2)

33,15031,96438,65037,711

39,15037,601

39,15037,601

39,15037,489311,001

359,500

359,500

359,500

359,500

105,681
1,008
3,244
2,936

107,930
1,210
3,367
3,059

108,395
1,278
3,557
3,557

107,421
1,179
3,282
2,828

107,196
1,162
3,235
2,919

-

1

-

143

-

308

307

-

311

316

1.3

1.5

1.6

1.3

1.3

2.6
2.8
5.5
47.8

3.0
3.1
6.2
48.3

3.1
3.3
6.5
48.0

2.7
2.8
5.6
47.8

2.6
2.7
5.4
47.7

(0.1)

0.5

(0.3)

(0.2)

(0.1)

100.0

100.0

100.0

95.2

100.0

184

181

184

181

184

37

47

48

48

48

479
128
1,858
1,392
4,478
48.2

552
111
2,138
1,652
4,596
48.1

563
152
2,189
1,637
4,555
48.2

560
196
2,178
1,628
4,529
48.5

566
187
2,172
1,615
4,494
48.5

(Note 1) HCM’s operating period is six months per fiscal period, from February 1 to July 31 and from August 1 to January 31 of the following year.
(Note 2) Unless otherwise stated, all amounts are rounded down to the nearest unit, and all percentages are rounded to the first decimal place.
(Note 3) The figure indicates the amount obtained by subtracting the deduction from unitholders’ capital from unitholders’ capital. The amount does not take into accountthe change in unitholders’ capital in line with the implementation of distributions in excess of earnings of allowance for temporary difference adjustments.
(Note 4) The following formulas are used in the calculation of their respective target values.
Ratio of ordinary income to total assets Ordinary income / [(Total assets at beginning of period + Total assets at end of period) / 2] × 100
Return on equity
Net income / [(Net assets at beginning of period + Net assets at end of period) / 2] × 100
Equity ratio at end of period
Net assets at end of period / Total assets at end of period × 100
Dividend payout ratio = Distributions per unit (not including distributions in excess of earnings) / Net income per unit ×100
Dividend payout ratio
Payout ratio for 15th fiscal period is calculated using the following formula since issuance of new investment units was
executed.
Dividend payout ratio = Total distributions (not including distributions in excess of earnings) / Net income × 100
Real estate leasing business revenue - Real estate leasing business expenses + Depreciation for investment and leasing
NOI (Net operating income)properties
FFO (Funds from operation)
Net income + Depreciation – Gain or loss on sales of real estate
FFO per unit
FFO / Total number of investment units issued and outstanding
LTV (Loan to value)Interest-bearing debts / Total assets at end of period × 100(Note 5) Capital expenditures for investment and leasing properties are shown.

2. State of Asset Management in the Period(1) Brief History of HCM
HCM was established under the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as
amended; hereinafter, the “Investment Trust Act”) with Healthcare Asset Management Co., Ltd. (hereinafter, the “AssetManagement Company” or “HAM”) as the organizer on December 9, 2014. HCM was listed on the Real Estate
Investment Trust Securities Market of Tokyo Stock Exchange, Inc. (hereinafter, the “Tokyo Stock Exchange”) on March
19, 2015 (securities code: 3455).
The total number of investment units issued and outstanding as of the end of the fiscal period ended January 2024
(August 1, 2023 to January 31, 2024) (hereinafter, the “18th fiscal period” or the “current fiscal period”) stands at
359,500 units.

(2) Investment Environment and Performancea. Investment Environment
HCM was established as a result of the social challenge in which expansion and enhancement of nursing care services
and medical services by healthcare facilities has become an urgent issue due to the increasing healthcare requirementsof aging populations within developed nations that has been further magnified by a continuing nursing care shortage.
In addition, the "Housing Life Basic Plan (nationwide plan)," approved by the Cabinet on March 19, 2021, sets thegoal of "creating communities where diverse generations can support each other and where the elderly can live in good
health and peace of mind," and states that the sufficiency ratio of housing for the elderly will increase from 2.5% in2018 to 4% by 2030.
HCM invests in and owns healthcare facilities, for which social demand is growing, in a stable manner to promote
appropriate maintenance/management and new supply of such facilities. By doing so, HCM seeks to realize a society
where all people can live vibrantly and with peace of mind, as well as to secure stable income and to achieve steady
growth of its portfolio.
b. Performance
During the current fiscal period, HCM made no acquisition or disposition of assets.
As of the end of the current fiscal period, HCM owns 48 properties with a total leasable area of 217,545.72 m2, andthe operational rate stands at 100%.
With regards to the Japanese economy, while the impact of the new coronavirus infection (COVID-19) has almost
disappeared, the economy remained on a gradual recovery path as a result of further normalization of economic
activities due to a pickup in personal consumption and other factors. On the other hand, we need to continue to monitor
the downside risks to the economy due to the prolonged situation in Ukraine and the resulting price hikes, as well as
the effects of the global monetary tightening.
In addition, in December 2021, HAM established the "Sustainability Promotion System Regulations" and the ESG
Committee in order to implement the "Basic Policy on ESG" in September 2018. As a result of its sustainability
promotion activities, HCM received a "2 Star" rating in the GRESB Real Estate Assessment 2023 Survey, an international
benchmark assessment that measures ESG considerations, and an "A Level" in the GRESB Disclosure Assessment, thehighest level of the five-level rating system. In order to realize the philosophy of HCM, "A society where all people canlive vibrantly and with peace of mind," HAM aims to contribute to the aged society and maximize unitholder value overthe medium to long-term by promoting the supply of healthcare facilities as social infrastructure and building aportfolio specializing in healthcare facilities.

(3) Overview of Financing
HCM upholds stable financial management as its basic policy for securing stable income and maintaining and enhancing
asset value over the medium to long-term.
In the current fiscal period, HCM refinanced 7,250 million yen in loans that were due for repayment on January 31,
2024.
As a result, unitholders’ capital (net) (Note) at the end of the current fiscal period stands at 37,489 million yen, thetotal number of investment units issued and outstanding at 359,500 units, and total interest-bearing liabilities at 39,150
million yen.
(Note)

The figure indicates the amount obtained by subtracting the deduction from unitholders’ capital from unitholders’ capital. The amount does not take into
account the change in unitholders’ capital in line with the implementation of distributions in excess of earnings of allowance for temporary difference
adjustments.

As of the end of the current fiscal period, the ratio of LTV is 48.5%.
HCM’s rating as of January 31, 2024 is as follows.
Rating Agency

Rating Category

RatingOutlookJapan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating

A+

Stable(4) Overview of Business Performance and Distributions
As a result of the performance described above, for the current fiscal period, operating revenue stood at 2,438 million
yen, operating income at 1,254 million yen, ordinary income at 1,050 million yen and net income at 1,049 million yen.
In accordance with the cash distributions policy described in Article 36, Paragraph 1 of its Articles of Incorporation,
HCM determines that the amount of distributions shall exceed the amount equivalent to 90% of its distributable profit
as stipulated in Article 67-15 of the Act on Special Measures Concerning Taxation, and shall be up to its profits as definedin Article 136, Paragraph 1 of the Investment Trust Act. Following this policy, HCM decided to distribute 1,049,380,500
yen, which is approximately the entire amount of unappropriated retained earnings after deducting the amount ofreversal of allowance for temporary difference adjustments from the amount of unappropriated retained earnings forthe current period, as distributions. Accordingly, distributions of earnings per unit were 2,919 yen.
Furthermore, in accordance with the policy for cash distributions in excess of earnings provided in Article 36,
Paragraph 2 of its Articles of Incorporation, HCM is to make its distributions in excess of earnings (return of capital that
falls under the category of distributions reducing unitholders’ capital for tax purposes) in each period on a continuous
basis, as a rule.
During the current fiscal period, HCM decided to distribute 113,602,000 yen, an amount roughly equivalent to 20%
of depreciation recorded in the current fiscal period, as distributions in excess of earnings. Accordingly, distributions inexcess of earnings per unit (of distributions in excess of earnings from other distributions) came to 316 yen.
As a result, distributions per unit came to 3,235 yen.
(Note 1) Distributions in excess of earnings are distributed up to the amount equivalent to 20% of the depreciation recorded in the accounting period immediately
before the accounting period when HCM will pay said distributions, sufficiently taking into consideration the amount of capital expenditures necessary for
maintaining and improving the competitiveness of HCM’s assets under management, the financial position of HCM and other factors.
However, distributions in excess of earnings may be conducted up to an amount lower than the above amount or may not be conducted when theimplementation of distributions in excess of earnings up to the said amount is judged to be inappropriate based on the economic environment surrounding
HCM, trends of the real estate market and leasing market, status of HCM’s assets under management and financial conditions.
(Note 2) Under the rules of The Investment Trusts Association, Japan (hereinafter, “The Investment Trusts Association”), closed-end investment corporations are allowed
to conduct their distributions in excess of earnings up to an amount equivalent to 60% of the depreciation recorded on the last day of the accounting period.

3. Status of Capital Increases
Changes in the total number of investment units issued and outstanding and unitholders’ capital over the past five years
are as follows.
Date

February 1, 2019
February 27, 2019

April 19, 2019

October 18, 2019

April 21, 2020

October 21, 2020

April 21, 2021

October 21, 2021

February 1, 2022
March 1, 2022

April 21, 2022

October 21, 2022

October 20, 2023

Notes
Capital increase
through public
offering
Capital increase
through third-party
allotment
Distributions inexcess of earnings(refund ofinvestment)
Distributions inexcess of earnings(refund ofinvestment)
Distributions inexcess of earnings(refund ofinvestment)
Distributions inexcess of earnings(refund ofinvestment)
Distributions inexcess of earnings(refund ofinvestment)
Distributions inexcess of earnings(refund ofinvestment)
Capital increase
through public
offering
Capital increase
through third-party
allotment
Distributions inexcess of earnings(refund ofinvestment)
Distributions inexcess of earnings(refund ofinvestment)
Distributions inexcess of earnings(refund ofinvestment)

Total number ofinvestment units issued
and outstanding (units)
Increase
Balance(Decrease)

Unitholders’ capital(millions of yen)

Unitholders’ capital (net)(millions of yen) (Note 1)

Increase(Decrease)

Balance

Increase(Decrease)

Remarks

Balance112,280

305,387

12,07631,876

12,07631,876(Note 2)5,614

311,001603

32,480603

32,480(Note 3)-311,001-

32,480(62)

32,417(Note 4)-

311,001-

32,480(87)

32,330(Note 5)-

311,001-

32,480(88)

32,242(Note 6)-

311,001-

32,480(89)

32,152(Note 7)-

311,001-

32,480(93)

32,058(Note 8)-311,001-

32,480(94)

31,964(Note 9)46,190357,191

5,564

38,045

5,564

37,529(Note 10)2,309

359,500

278

38,323278

37,807(Note 11)-359,500-

38,323(95)

37,711(Note 12)-359,500-

38,323(110)

37,601(Note 13)-359,500-

38,323(111)

37,489(Note 14)

(Note 1) The figure indicates the amount obtained by subtracting the deduction from unitholders’ capital from unitholders’ capital. The amount does not take into
account the change in unitholders’ capital in line with the implementation of distributions in excess of earnings of allowance for temporary difference
adjustments.
(Note 2) New investment units were issued through public offering with issue price of 111,442 yen (paid-in amount of 107,555 yen) per unit.
(Note 3) New investment units were issued through third-party allotment in line with public offering, with paid-in amount of 107,555 yen per unit.
(Note 4) HCM resolved at the board of directors’ meeting held on March 15, 2019, to set cash distributions in excess of earnings (return of capital that falls under the
category of distributions reducing unitholders’ capital for tax purposes) at 326 yen per unit as cash distributions for the 8th fiscal period (fiscal period ended
January 2019), and started the payout on April 19, 2019.
(Note 5) HCM resolved at the board of directors’ meeting held on September 13, 2019, to set cash distributions in excess of earnings (return of capital that falls under
the category of distributions reducing unitholders’ capital for tax purposes) at 280 yen per unit as cash distributions for the 9th fiscal period (fiscal period ended
July 2019), and started the payout on October 18, 2019.
(Note 6) HCM resolved at the board of directors’ meeting held on March 17, 2020, to set cash distributions in excess of earnings (return of capital that falls under the
category of distributions reducing unitholders’ capital for tax purposes) at 285 yen per unit as cash distributions for the 10th fiscal period (fiscal period ended
January 2020), and started the payout on April 21, 2020.
(Note 7) HCM resolved at the board of directors’ meeting held on September 15, 2020, to set cash distributions in excess of earnings (return of capital that falls under
the category of distributions reducing unitholders’ capital for tax purposes) at 289 yen per unit as cash distributions for the 11th fiscal period (fiscal period
ended July 2020), and started the payout on October 21, 2020.
(Note 8) HCM resolved at the board of directors’ meeting held on March 16, 2021, to set cash distributions in excess of earnings (return of capital that falls under the
category of distributions reducing unitholders’ capital for tax purposes) at 300 yen per unit as cash distributions for the 12th fiscal period (fiscal period ended
January 2021), and started the payout on April 21, 2021.
(Note 9) HCM resolved at the board of directors’ meeting held on September 14, 2021, to set cash distributions in excess of earnings (return of capital that falls under
the category of distributions reducing unitholders’ capital for tax purposes) at 304 yen per unit as cash distributions for the 13th fiscal period (fiscal period
ended July 2021), and started the payout on October 21, 2021.
(Note 10) New investment units were issued through public offering with issue price of 124,764 yen (paid-in amount of 120,477 yen) per unit.
(Note 11) New investment units were issued through third-party allotment in line with public offering, with paid-in amount of 120,477 yen per unit.
(Note 12) HCM resolved at the board of directors’ meeting held on March 18, 2022, to set cash distributions in excess of earnings (return of capital that falls under the
category of distributions reducing unitholders’ capital for tax purposes) at 308 yen per unit as cash distributions for the 14th fiscal period (fiscal period ended

January 2022), and started the payout on April 21, 2022.
(Note 13) HCM resolved at the board of directors’ meeting held on September 14, 2022, to set cash distributions in excess of earnings (return of capital that falls under
the category of distributions reducing unitholders’ capital for tax purposes) at 307 yen per unit as cash distributions for the 15th fiscal period (fiscal period
ended July 2022), and started the payout on October 21, 2022.
(Note 14) HCM resolved at the board of directors’ meeting held on September 15, 2023, to set cash distributions in excess of earnings (return of capital that falls under
the category of distributions reducing unitholders’ capital for tax purposes) at 311 yen per unit as cash distributions for the 17th fiscal period (fiscal period
ended July 2023), and started the payout on October 20, 2023.

Investment units’ price performance
The investment units’ high and low closing prices on the TSE’s J-REIT Market are tabulated below by fiscal period.
14th fiscal period

15th fiscal period

16th fiscal period

17th fiscal period

18th fiscal period

From August 1, 2021
To January 31, 2022

From February 1, 2022
To July 31, 2022

From August 1, 2022
To January 31, 2023

From February 1, 2023
To July 31, 2023

From August 1, 2023
To January 31, 2024

High

162,600 yen

176,400 yen

204,500 yen

173,100 yen

154,900 yen

Low

131,000 yen

134,700 yen

162,000 yen

153,200 yen

131,700 yen

Fiscal period

4. Distributions
In accordance with the cash distributions policy described in Article 36, Paragraph 1 of its Articles of Incorporation,
HCM determines that the amount of distributions shall exceed the amount equivalent to 90% of its distributable profit
as stipulated in Article 67-15 of the Act on Special Measures Concerning Taxation, and shall be up to its profits as definedin Article 136, Paragraph 1 of the Investment Trust Act. Following this policy, HCM decided to distribute 1,049,380,500
yen, which is approximately the entire amount of unappropriated retained earnings after deducting the amount ofreversal of allowance for temporary difference adjustments from the amount of unappropriated retained earnings forthe current period, as distributions. Accordingly, distributions of earnings per unit were 2,919 yen.
In addition, in accordance with the policy for cash distributions in excess of earnings provided in Article 36, Paragraph
2 of its Articles of Incorporation, HCM is to conduct make its distributions in excess of earnings (return of capital that
falls under the category of distributions reducing unitholders’ capital for tax purposes) in each period on a continuous
basis, as a rule.
During the current fiscal period, HCM decided to distribute 113,602,000 yen, an amount roughly equivalent to 20%
of depreciation recorded in the current fiscal period, as distributions in excess of earnings. Accordingly, distributions inexcess of earnings per unit (of distributions in excess of earnings from other distributions) came to 316 yen.
As a result, distributions per unit came to 3,235 yen.
Fiscal period
Total unappropriated retained
earnings(thousands ofyen)(thousands of
Retained earnings carried forward
yen)(thousands ofTotal distributions
yen)
(yen)
[Distributions per unit](thousands ofTotal distributions of earnings
yen)
(yen)
[Distributions of earnings per unit](thousands ofDistributions in excess of earnings
yen)[Distributions in excess of earnings(yen)
per unit]
Distributions in excess of earnings(thousands offrom allowance for temporaryyen)difference adjustments[Distributions in excess of earnings(yen)from allowance for temporary
difference adjustments per unit]
Distributions in excess of earnings(thousands offrom distributions under tax law
yen)
resulting in a redemption ofunitholders’ capital[Distributions in excess of earnings
from distributions under tax law(yen)
resulting in a redemption ofunitholders’ capital per unit]

14th fiscal
period15th fiscal
period16th fiscal
period17th fiscal
period18th fiscal
periodFrom Aug. 1, 2021
To Jan. 31, 2022

From Feb. 1, 2022
To Jul. 31, 2022

From Aug. 1, 2022
To Jan. 31, 2023

From Feb. 1, 2023
To Jul. 31, 2023

From Aug. 1, 2023
To Jan. 31, 2024

929,041

1,111,161

1,289,825

1,068,158

1,100,906

11,027

11,451

138

51,492

2,019

1,008,887

1,210,436

1,278,741

1,179,879

1,162,982[3,244][3,367][3,557][3,282][3,235]913,098

1,099,710

1,278,741

1,016,666

1,049,380[2,936][3,059][3,557][2,828][2,919]95,788110,726-

163,213

113,602

[308]

[308]

[-]

[454]

[316]

-

359

-

51,408

-

[-]

[1]

[-]

[143]

[-]

95,788110,366-

111,804

113,602

[308]

[307]

[-]

[311]

[316]

(Note 1) Distributions in excess of earnings are distributed up to the amount equivalent to 20% of the depreciation recorded in the accounting period immediately before
the accounting period when HCM will pay the said distributions, sufficiently taking into consideration the amount of capital expenditures necessary for maintaining
and improving the competitiveness of HCM’s assets under management, the financial position of HCM and other factors.
However, distributions in excess of earnings may be conducted up to an amount lower than the above amount or may not be conducted when the implementationof distributions in excess of earnings up to the said amount is judged to be inappropriate based on the economic environment surrounding HCM, trends of the realestate market and leasing market, status of HCM’s assets under management and financial conditions.
(Note 2) Under the rules of The Investment Trusts Association, closed-end investment corporations are allowed to conduct their distributions in excess of earnings up to an
amount equivalent to 60% of the depreciation recorded on the last day of the accounting period.

5. Future Management Policy(1) Investment Environment
In Japan, while the number of elderly households is increasing, the population that bears nursing care is on the decline,
and a provision of nursing care services and medical services at external facilities for a certain percentage of elderly
households will inevitably be needed. The expansion of the supply of healthcare facilities, especially facilities andhousing for the elderly, is required in response to the expanding demand for nursing care and medical services.
As nursing care in the same household is forecast to be more difficult than ever before due to extreme aging andchange to family structures, new development and expansion of healthcare facilities are required to respond to thegrowing demand for nursing care and medical services, and measures to achieve them are being promoted.
In “Japan Revitalization Strategy - JAPAN is BACK -“ dated June 14, 2013, the Headquarters for Japan's Economic
Revitalization announced a policy to “enact a guideline concerning acquisition and management of properties including
housing for the elderly to promote the utilization of healthcare REITs in an effort to utilize private funds” as part of urban
development to enable the elderly to walk and live safely.
Following this policy, the Ministry of Land, Infrastructure, Transport and Tourism enacted the “Guideline Related to
the Utilization of Healthcare REITs Targeting Housing for the Elderly” on June 27, 2014, and the “Guideline Related to
REITs Targeting Hospital Real Estate” on June 26, 2015, as well as indicating the points to be noted in transactions ofhealthcare facilities, such as the positioning of key executives with certain experience. With the enactment of theseguidelines, it is believed that opportunities for operators to utilize healthcare REITs will increase.
Regarding the environment surrounding healthcare-related facilities, social welfare costs are expected to increase
alongside Japan’s aging population, and demand for medical and long-term care services is expected to increase aheadof 2025, when the baby boomer generation will be 75 years old or older. Meanwhile, there are significant regionalvariances in the growth of the elderly population. To address these issues, studies and actions are underway to establish
a regional comprehensive care system through a review of the medical care system and to realize a regional healthcare
vision (Note 1).
In Japan, under a regional comprehensive care system, work is underway to build an integrated framework ofresidences, medical care, nursing care, preventative medicine and lifestyle support suitable for each region so that theelderly can continue to live in the area they are used to in the way they would like, even after they come to requirenursing care.
The government has further divided the functions of beds in medical institutions in line with the conditions ofpatients, aiming to provide appropriate medical services to all patients at an appropriate location in order to effectively
utilize limited medical resources, and enacted systemic reforms in healthcare systems, such as establishing guidelines(March 2015) for planning a community healthcare vision in prefectures. Prefectures have formulated the community
healthcare vision for the purpose of realizing a system encouraging the effective and efficient allocation of resources
commensurate with the healthcare functions in each of the national government-designated regions, and providing ahigher quality of healthcare services in beds appropriate for the condition of patients, from acute to convalescent andchronic phases, for each disease. The community healthcare vision is designed 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. Presently,
prefectural governments and healthcare professionals are working together via regional healthcare vision councils andother channels to realize this vision.
Furthermore, the number of hospitals across Japan is estimated to be about 8,100. However, some of them were built
in the 1960s and 1970s and do not meet earthquake-resistance standards amid Japan’s earthquake-prone environment.
The earthquake resistance rate of hospitals in Japan, a country known for earthquakes, was only 79.5% in 2022, of which
the rate of earthquake resistance of base hospitals for disaster relief and emergency medical centers was 95.4% (Note2). Hospitals are used by an unspecified large number of people every day and can also be used as a community base incase of a disaster. Earthquake resistance is an urgent issue even from the viewpoint of strengthening the country's
infrastructure. Therefore, HCM believes that there is a great need among hospitals for funding to rebuild or expand theirbuildings to make them more earthquake resistant.
In addition to the above, medical corporations are also expected to face needs for capital investment, M&A-driven
funding procurement and asset sales for the enhancement or conversion of medical functions, including multi-use
development (Note 3) and reconstruction and expansion of buildings due to earthquake resistance. Furthermore, HCM
believes, in the instance of realizing held assets for the purpose of strengthening financial position, liquidation of(generating funds from) held assets for a hospital owner’s business succession or inheritance, or sale of hospital realestate for refinancing, that real estate investment corporations will have opportunities related to these assets.
The market size of hospital real estate in Japan accounts for a majority of the total healthcare facility real estatemarket, and the majority of hospital real estate is owned by medical corporations (Note 4). HCM believes that whenhospital real estate is liquidated, it may become a target for investment by real estate investment corporations.
As described above, HCM believes that, amid the funding needs of medical corporations, and as a method for
procuring funds related to hospital management and part of strengthening financial positions, opportunities forleveraging real estate investment corporations in hospital real estate will expand further.
Therefore, the market for healthcare facilities with a particular emphasis on the keywords “nursing care,” “medical
services” and “health,” which HCM sets as acquisition targets, is believed to further expand in the future.
(Note 1) In the section about the reorganization of medical and nursing care functions (future vision) of “Promotion of Home Medical and Nursing Care" by the project
team for promoting home medical and nursing care as published by the Ministry of Health, Labour and Welfare, it is stated that "a more effective and efficient
medical and nursing care service provision system will be built through a role division for hospital and hospital bed functions according to patient needs andby strengthening cooperation among medical institutions and between medical and nursing care services.”(Note 2) Quoted from the "Results of the Survey on Seismic Retrofit of Hospitals" (released on October 10, 2023) by the Ministry of Health, Labour and Welfare. Notethat in these surveys, hospitals with buildings constructed before 1981 (before the enforcement of the revised Building Standards Act of 1980) that have notbeen assessed as resistant to earthquakes are included in calculations as buildings with unknown earthquake resistance.
(Note 3) “Multi-use development” refers to the development of real estate with multiple functions and uses, such as healthcare facilities that combine facilities for theelderly, residences, and medical facilities.
(Note 4) Figures are based on preliminary calculations by KPMG Healthcare Japan Co., Ltd.

(2) Future Management Policy and Challenges to Address
With recognition of the above investment environment, HCM aims to realize a society where all peop le can live vibrantly
and with peace of mind, and to increase unitholder value through securing stable income and steady growth of the portfolio.

6. Significant Subsequent Events
Not Applicable(Reference Information)a. Acquisition of assets
On February 1, 2024, HCM acquired the trust beneficiary interests in the following 5 real estate properties (hereinafter,"Assets acquired in the 19th Fiscal Period").
Property number

Property namePaid nursing home-45

NOAH GARDEN Building A

Paid nursing home-46

NOAH GARDEN Building B

Paid nursing home-47

NOAH GARDEN Villa

Serviced housing for theelderly-4

NOAH GARDEN Bloom View

Paid nursing home-48

PD house-Higashiosaka

Total(Note)

─

Location

Acquisition price(Note)(millions of yen)

Sapporo-shi,
Hokkaido
Sapporo-shi,
Hokkaido
Sapporo-shi,
Hokkaido
Sapporo-shi,
Hokkaido
Higashiosaka-shi,
Osaka
─

384
280
300
736
693
2,393

Acquisition price does not include acquisition-related expenses, property tax, city planning tax, consumption tax and local consumption tax.

b. Borrowings
HCM executed borrowings to allocate to a portion of the acquisition and its related expenses for the Assets acquired in
the 19th Fiscal Period.
Type

LenderLong
term

A syndicate oflenders
arranged by
Sumitomo
Mitsui Banking
Corporation

Borrowingamount2,500
million yen

Interest rate
(Note 1)

Drawdown
Borrowing method
date

Repayment
date

1.1643%(Note 2)

Borrowings basedon the individual
term loan
February 1, agreement as of2024
January 29, 2024,with the company
on the left as alenderLump-sum
Unsecured andJuly 31, 2029 repayment
unguaranteedon maturity

Repayment
methodRemarks(Note 1) Loan fees and other fees paid to lenders are not included.
(Note 2) Interest rate swap agreements have been concluded and the indicated interest rates are those substantively fixed by the agreements.

c. Refinancing
HCM decided on March 19, 2024 to borrow the following funds to fund the repayment of 2,000 million yen in existingloans maturing on March 30, 2024.
Type

LenderLong
term

A syndicate oflenders
arranged by
Sumitomo
Mitsui Banking
Corporation

BorrowingamountInterest rate
(Note 2)

Drawdown
Borrowing method
date

Base interest rate
(JBA 3-month
2,000
March 29,
million yen Japanese yen TIBOR)
2024+ 0.485%

Borrowings basedon the individual
term loan
agreement as ofMarch 27, 2024,with the company
on the left as alenderRepayment
date

Repayment
methodRemarks

Lump-sum
Unsecured andJuly 31, 2029 repayment
unguaranteedon maturity(Note 1) The borrowing is subject to a number of conditions, including the execution of an agreement relating to the loan that is reasonably satisfactory to the lenders
mentioned above and the satisfaction of all lending preconditions, which are to be separately determined.
(Note 2) Loan fees and other fees paid to lenders are not included.

d. Acquisition of Investment Equity in a Silent Partnership
HCM entered into an agreement (silent partnership agreement) on March 19, 2024 for the acquisition of one of thefollowing assets (equity interest in silent partnership).
Property name
TK Equity
Interest of HC
Syukugawa GK

Underlying assets

PLAISANT GRAND
Syukugawa

Location

Investment
price(Percentage ofequity interest)

Acquisitiondate

Acquiring entity

Nishinomiyashi, Hyogo

98 million yen(10.0%)March 21,2024

HC SyukugawaGKOverview of HCM
1. Status of Capitalization
14th fiscal period 15th fiscal period 16th fiscal period 17th fiscal period 18th fiscal period

Fiscal period
Total number ofinvestment units
authorized
Total number ofinvestment units issued
and outstanding
Unitholders' capital, net(Note)
Number of unitholders(Note)(as of Jan. 31, 2022)(as of Jul. 31, 2022)(as of Jan. 31, 2023)(as of Jul. 31, 2023)(as of Jan. 31, 2024)(units)

10,000,000

10,000,000

10,000,000

10,000,000

10,000,000(units)311,001

359,500

359,500

359,500

359,500

31,96437,71137,60137,601

37,48915,49015,30814,986

15,87816,652(millionsof yen)(persons)

The figure indicates the amount obtained by subtracting the deduction from unitholders’ capital from unitholders’ capital. The amount does not take into
account the change in unitholders’ capital in line with the implementation of distributions in excess of earnings of allowance for temporary difference
adjustments.

2. Matters Concerning Investment Units
Top 10 unitholders ranked by percentage of outstanding investment units owned at January 31, 2024, are listed below.
No. of investment
units held
(units)90,696

Name
Custody Bank of Japan, Ltd. (Trust Account)

Percentage of outstanding
units owned (%)
25.23

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

42,467

11.81

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

15,745

4.38

NORTHERN TRUST CO. (AVFC) RE FIDELITY FUNDS

15,587

4.34

SSBTC CLIENT OMNIBUS ACCOUNT

4,336

1.21

JP MORGAN CHASE BANK 385771

4,068

1.13

Morgan Stanley MUFG Securities Co., Ltd.

4,044

1.12

JP MORGAN CHASE BANK 385781

4,003

1.11

NEC Capital Solutions Limited

4,000

1.11

SHIP HEALTHCARE HOLDINGS, INC.

4,000

1.11

Sumitomo Mitsui Banking Corporation

4,000

1.11

192,946

53.67

Total

3. Matters Concerning Directors(1) Executive Director, Supervisory Directors and Accounting Auditor in the Current Fiscal Period
Position
Executive
DirectorName

Key concurrent holding of positions

Yuji Fujise

Shimada Hamba & Osajima Lawyer

Sachihiko Fujimoto

Hayabusa Asuka Law Offices Counsel

Kaori Sato

Torikai Law Office Partner

Total amount of compensation foreach position during period(thousands of yen)
2,400

(Note 1) (Note 2)

Supervisory
Director(Note 1) (Note 2)

Accounting PricewaterhouseCoopers Japan
Auditor (Note 3) LLC (Note 4)

-

3,000
11,000(Note 1) The amount paid in the current period.
(Note 2) None of the executive director or supervisory directors own HCM’s investment units in their own name or in the name of another. In addition, supervisory directors
may be directors of other corporations other than those stated above, but none of them, including those above, have a vested interest in the HCM or the AssetManagement Company.
(Note 3) For the “Accounting Auditor,” the remuneration for the audit for the current period is 11,000 thousand yen. Non-audit fees to those belonging to the same networkas the accounting auditor amount to 4,720 thousand yen.
(Note 4) PricewaterhouseCoopers Aarata LLC, for which the Fund had received an audit certification, merged with PricewaterhouseCoopers Kyoto and changed its nameto PricewaterhouseCoopers Japan LLC as of December 1, 2023. The same applies hereafter in this document.

(2) Policy on Dismissal and Non-reappointment of Accounting Auditor
The accounting auditor shall be dismissed when any of the items of Article 105, Paragraph 1 of the Investment Trusts
Act is deemed to apply, and non-reappointment shall be reviewed by HCM’s Board of Directors, with comprehensive
consideration to the quality of audits, the amount of audit fees, and various other circumstances.

4. Matters Related to Directors Liability Insurance Agreements
HCM has concluded directors liability insurance agreements, as follows.
Scope of Insured Parties

Overview of Directors Liability Insurance Agreement Content(Summary of covered incidents)
HCM has concluded a directors liability insurance agreement with an insurance company as
stipulated in Article 116-3, Paragraph 1 of the Investment Trusts Act. This agreement covers
damages that may arise from an insured person being held liable for the performance of theirduties or being subject to claims related to such liability.

All executive and supervisory directors(Percentage of premiums paid)
Premiums are fully borne by HCM for all insured parties.
(Measures to ensure that the appropriateness of the execution of director duties is not
impaired)
Exemptions are stipulated in the agreement, such as for non-coverage of damages caused by
willful misconduct or gross negligence.

5. Asset Management Company, Asset Custodian and General Administrators
The asset management company, asset custodian and general administrators as of January 31, 2024, are as follows:
Entrustment category

Name

Asset management company

Healthcare Asset Management Co., Ltd.

Asset custodian

Sumitomo Mitsui Trust Bank, Limited

General administrator (accounting matters, transfer agent for investment
units, administration of investment corporation bonds)

Sumitomo Mitsui Trust Bank, Limited

General administrator (running of the organization)

Healthcare Asset Management Co., Ltd.

Status of Investment Assets of HCM
1. Composition of Assets of HCM

Asset type

Asset use

Area

Paid nursing
home

61.1

49,16060.9Core Cities (Note 4)

7,871

9.7

7,803

9.7

1,705

2.1

1,686

2.1

2,925

3.6

2,892

3.6

1,687

2.1

1,673

2.1

-

-

-

-

-

-

-

-

Core Cities (Note 4)

Other facilities for the elderly

-

-

-

-

63,56078.7

63,215

78.3

Three Major
Metropolitan Areas(Note 3)

-

-

-

-

Core Cities (Note 4)

Subtotal

Medical service-related
facilities(as of Jan. 31, 2024)

Total amount As a percentage Total amount As a percentage
owned
of
owned
of
(millions of yen) total assets (millions of yen) total assets(Note 1)(%) (Note 2)(Note 1)(%) (Note 2)
49,370

Other Areas(Note 5)
Group homes for the elderly withdementia

Trust
beneficiaryinterests inreal estate

18th fiscal period(as of Jul. 31, 2023)

Three Major
Metropolitan Areas(Note 3)
Other Areas(Note 5)Three Major
Metropolitan Areas(Note 3)Homes andfacilities
Serviced
for thehousing for theelderlyelderly

17th fiscal period

2,101

2.6

2,084

2.6

Other Areas(Note 5)

-

-

-

-

Subtotal

2,101

2.6

2,084

2.6

Three Major
Metropolitan Areas(Note 3)

12,76315.8

12,741

15.8

Core Cities (Note 4)

-

-

-

-

Other Areas(Note 5)

-

-

-

-

Subtotal

12,76315.8

12,741

15.8

-

-

-

-

78,424

97.1

78,041

96.7

Deposits and other assets

2,364

2.9

2,673

3.3

Total assets

80,789100.0

80,714100.0

Multi-use
facilities

Complex of
paid nursing
homes, medical
service-related
facilities

Other
Total

(Note 1) “Total amount owned” is the carrying amount (in the case of trust beneficiary interests in real estate, the book value after depreciation and amortization).
(Note 2) Figures in “As a percentage of total assets” are rounded to one decimal place.
(Note 3) “Three Major Metropolitan Areas” refers to the Tokyo Metropolitan Area (Tokyo, Kanagawa, Saitama, Chiba prefectures), Kinki Area (Osaka, Kyoto, Hyogo
prefectures) and Chubu Area (Aichi prefecture).
(Note 4) “Core Cities” refers to designated cities, prefectural capitals and regional core cities other than the Three Major Metropolitan Areas. Regional core cities refer tocities with a population of 200,000 or more.
(Note 5) “Other Areas” refers to areas other than the Three Major Metropolitan Areas and Core Cities.

2. Major Assets Held
The following is an overview of the major portfolio assets (top ten properties in terms of book value) held by HCM as ofJanuary 31, 2024.

Name of real estate

Carrying
amount(millions ofyen)Leasablearea (m2)(Note 1)

Leased area(m2)
(Note 2)

Occupancy
rate(%)(Note 3)As a percentage of
total operating revenue
from real estate leasing
business(%)(Note 4)

Primary use

SHIP Senri Building

12,741

24,813.85

24,813.85

100.0

Not disclosed

Paid nursing
home・Medical
service-related
facilities

GreenLife Moriguchi

4,120

8,356.85

8,356.85

100.0

Not disclosed

Paid nursing
home

Kobe Gakuentoshi Building

4,019

12,636.48

12,636.48

100.0

Not disclosed

Paid nursing
home

SOMPO CARE La vie Re
Machidaonoji

3,281

7,720.17

7,720.17

100.0

Not disclosed

Paid nursing
home

SOMPO CARE La vie Re
Azamino2,897

5,789.25

5,789.25

100.0

Not disclosed

Paid nursing
homeSmiling Home Medice
Adachi

2,261

3,870.98

3,870.98

100.0

Not disclosed

Paid nursing
homeNiigata Rehabilitation
Hospital

2,084

13,476.55

13,476.55

100.0

Not disclosed

Medical servicerelated facilities

Hanakotoba Shin-Yokohama

2,079

5,230.23

5,230.23

100.0

Not disclosed

Paid nursing
homeHeartland Kawaguchi
Meiseien

2,065

3,885.90

3,885.90

100.0

Not disclosed

Paid nursing
home

AQUAMARINE
Nishinomiyahama

1,848

5,274.54

5,274.54

100.0

Not disclosed

Paid nursing
home

Total

37,39991,054.80

91,054.80

100.0

47.1

(Note 1)
(Note 2)
(Note 3)(Note 4)-

“Leasable area” indicates figures based on the lease agreement of each building.
“Leased area” indicates the areas out of the leasable area for which actual lease agreements have been concluded and are leased.
”Occupancy rate” indicates the leased area as a percentage of the leasable area of each owned asset as of January 31, 2024, and is rounded to one decimal place.
“As a percentage of total operating revenue from real estate leasing business,” for each property is not disclosed as consent for disclosure of real estate leasing
business revenue has not been obtained from tenants. The total value is rounded to the first decimal place.

3. Details of Real Estate and Other Assets
The following is an overview of the assets held by HCM as of January 31, 2024.
Total leasable
area
(m2)

Carrying
amount(millions ofyen)(Note 1)

Period-end
appraisalvalue(millions ofyen)(Note 2)

Location

Type ofownership

AQUAMARINE Nishinomiyahama

Nishinomiya-shi, Hyogo

Trust beneficiaryinterests in realestate5,274.54

1,848

2,140

Bonsejour Chitosefunabashi

Setagaya-ku, Tokyo

Trust beneficiaryinterests in realestate2,342.17

798

997

Bonsejour Hino

Hino-shi, Tokyo

Trust beneficiaryinterests in realestate1,984.17

697

834

Bonsejour Musashi-shinjo

Kawasaki-shi, Kanagawa

Trust beneficiaryinterests in realestate1,710.43

561

643

Medical Rehabilitation Home
Bonsejour Hadanoshibusawa

Hadano-shi, Kanagawa

Trust beneficiaryinterests in realestate3,435.79

671

850

ASHEIM Hikarigaoka

Nerima-ku, Tokyo

Trust beneficiaryinterests in realestate3,628.60

1,387

1,590

ASHEIM Bunkyohakusan

Bunkyo-ku, Tokyo

Trust beneficiaryinterests in realestate2,507.25

1,377

1,790

SOMPO CARE La vie Re Machidaonoji

Machida-shi, Tokyo

Trust beneficiaryinterests in realestate7,720.17

3,281

4,230

SOMPO CARE La vie Re Azamino

Yokohama-shi, Kanagawa

Trust beneficiaryinterests in realestate5,789.25

2,897

3,560

SAWAYAKA Tachibanakan

Fukuoka-shi, Fukuoka

Trust beneficiaryinterests in realestate5,652.94

1,269

1,630

SAWAYAKA Mekarikan

Kitakyushu-shi, Fukuoka

Trust beneficiaryinterests in realestate4,720.46

1,164

1,480

SAWAYAKA Tagawakan

Tagawa-shi, Fukuoka

Trust beneficiaryinterests in realestate2,366.20

356

405

GOOD TIME HOME Fudo-mae

Shinagawa-ku, Tokyo

Trust beneficiaryinterests in realestate3,400.20

1,815

2,100

Rehabilitation Home
Bonsejour Yotsugi (Note 3)

Katsushika-ku, Tokyo

Trust beneficiaryinterests in realestate1,962.89803

905

Medical Home Bonsejour Itami

Itami-shi, Hyogo

Trust beneficiaryinterests in realestate2,129.87

479

557

Kobe Gakuentoshi Building

Kobe-shi, Hyogo

Trust beneficiaryinterests in realestate12,636.48

4,019

4,800

GreenLife Moriguchi

Moriguchi-shi, Osaka

Trust beneficiaryinterests in realestate8,356.85

4,120

4,850

Hapine Kobe Uozaki Nibankan

Kobe-shi, Hyogo

Trust beneficiaryinterests in realestate1,772.89

898

1,050

Granda Tsuruma-Yamato

Yamato-shi, Kanagawa

Trust beneficiaryinterests in realestate3,427.08

1,023

1,030

Name of real estateType ofownership

Total leasable
area
(m2)

Carrying
amount(millions ofyen)(Note 1)

Period-end
appraisalvalue(millions ofyen)(Note 2)Name of real estate

Location

Smiling Home Medice Adachi

Adachi-ku, Tokyo

Trust beneficiaryinterests in realestate3,870.98

2,261

2,490

AIKOEN ICHIBANKAN Building

Niigata-shi, Niigata

Trust beneficiaryinterests in realestate4,311.20

751

824

Hanakotoba Minami

Yokohama-shi, Kanagawa

Trust beneficiaryinterests in realestate1,710.68

1,075

1,210

Hanakotoba Miura

Miura-shi, Kanagawa

Trust beneficiaryinterests in realestate1,959.64

639

670

SOMPO CARE Lavie Re
Hama-Kawasaki

Kawasaki-shi, Kanagawa

Trust beneficiaryinterests in realestate4,060.21

1,699

1,850

Hanakotoba Shin-Yokohama

Yokohama-shi, Kanagawa

Trust beneficiaryinterests in realestate5,230.23

2,079

2,520

Hanakotoba Shin-Yokohama II

Yokohama-shi, Kanagawa

Trust beneficiaryinterests in realestate1,837.29

391

382

Hanakotoba Odawara

Odawara-shi, Kanagawa

Trust beneficiaryinterests in realestate2,203.42884

962

Verde Minowa

Takasaki-shi, Gunma

11,098.17

1,635

1,770

Verde Hotaka

Kawaba-mura,Tone-gun, Gunma

6,352.86

1,329

1,590

Sunny Life Kita-Shinagawa

Shinagawa- ku, Tokyo

2,135.54

1,829

2,130

Sunny Life Kamakura

Kamakura-shi, Kanagawa

3,817.91

1,448

1,650

Nichii Home Nishikokubunji

Kokubunji-shi, Tokyo

1,559.99764

793

3,824.54

1,340

1,300

1,997.87651

646

3,484.02

1,318

1,360

2,736.89895

930

2,075.25

648

670

4,602.26

1,438

1,550

3,885.90

2,065

2,280

2,373.25

1,062

1,110

1,918.98

852

883

SOMPO CARE Lavie Re Kobeikawadani Kobe-shi, Hyogo
SOMPO CARE Sompo no ie Sayama

Sakai-shi, Osaka

Royal Kawaguchi

Kawaguchi-shi, Saitama

NOAH GARDEN LEGEND

Sapporo-shi, Hokkaido

NOAH GARDEN L Grace

Sapporo-shi, Hokkaido

NOAH GARDEN Season Bell

Sapporo-shi, Hokkaido

Heartland Kawaguchi Meiseien

Kawaguchi-shi, Saitama

Rehabilitation Home Granda
Minamiurawa

Kawaguchi-shi, Saitama

Madoka Minamiurawa

Kawaguchi-shi, Saitama

Trust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateName of real estate

Location

Nichii Maison Inage

Chiba-shi, Chiba

Hanakotoba Oppama

Yokosuka-shi, Kanagawa

SOMPO CARE Sompo no ie S
Awajiekimae

Osaka-shi, Osaka

SOMPO CARE Sompo no ie S
Kobekamisawa

Kobe-shi, Hyogo

NOAH GARDEN CASA RICH

Sapporo-shi, Hokkaido

Niigata Rehabilitation Hospital

Niigata-shi, Niigata

SHIP Senri Building

Toyonaka-shi, Osaka
Total(Note 1)
(Note 2)
(Note 3)

Type ofownership
Trust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTrust beneficiaryinterests in realestateTotal leasable
area
(m2)

Carrying
amount(millions ofyen)(Note 1)

Period-end
appraisalvalue(millions ofyen)(Note 2)4,700.07

1,572

1,670

1,899.46541

512

5,745.15

1,775

2,390

4,058.35

1,117

1,440

4,986.98

1,673

1,750

13,476.55

2,084

2,270

24,813.85

12,741

14,500217,545.72

78,04189,543“Carrying amount” indicates book value after depreciation and amortization as of January 31, 2024.
“Period-end appraisal value” indicates amounts stated in the appraisal report with appraisal date of January 31, 2024.
The "Name of real estate" has been changed from " Bonsejour Yotsugi " to " Rehabilitation Home Bonsejour Yotsugi ". The same applies hereinafter in thisdocument.

The leasing status of real estate and other assets owned by HCM is as follows.

Name of real estate

17th fiscal period

18th fiscal period

From Feb. 1, 2023
To Jul. 31, 2023

From Aug. 1, 2023
To Jan. 31, 2024

No. oftenants(Note 1)

Occupancy
rate(%)

AQUAMARINE Nishinomiyahama

2

100.0

Bonsejour Chitosefunabashi

1

100.0

Bonsejour Hino

1

100.0

Bonsejour Musashi-shinjo

1

100.0

Medical Rehabilitation Home
Bonsejour Hadanoshibusawa

1

100.0

ASHEIM Hikarigaoka

1

100.0

ASHEIM Bunkyohakusan

2

100.0

SOMPO CARE La vie Re
Machidaonoji

1

100.0

SOMPO CARE La vie Re
Azamino1

100.0

SAWAYAKA Tachibanakan

1

100.0

SAWAYAKA Mekarikan

1

100.0

SAWAYAKA Tagawakan

1

100.0

GOOD TIME HOME Fudo-mae

1

100.0

Rehabilitation Home
Bonsejour Yotsugi

1

100.0

Medical Home Bonsejour Itami

1

100.0

Kobe Gakuentoshi Building

1

100.0

GreenLife Moriguchi

1

100.0

Hapine Kobe Uozaki Nibankan

1

100.0

Granda Tsuruma-Yamato

1

100.0

Smiling Home Medice Adachi

2

100.0

AIKOEN ICHIBANKAN Building

3

100.0

As a
Real estate
percentage
leasingof totalbusinessleasingrevenuebusiness(millionsrevenueof yen)(%)
Not
Notdisclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)

No. oftenants(Note 1)

2
1
1
1
1
1
2
1
1
1
1
1
1
1
1
1
1
1
1
2
3

As a
Real estate
percentage
leasing
Occupancyof totalbusiness
rateleasingrevenue(%)
business(millions ofrevenue
yen)
(%)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)Name of real estate

17th fiscal period

18th fiscal period

From Feb. 1, 2023
To Jul. 31, 2023

From Aug. 1, 2023
To Jan. 31, 2024

No. oftenants(Note 1)

Occupancy
rate(%)

Hanakotoba Minami

1

100.0

Hanakotoba Miura

1

100.0

SOMPO CARE La vie Re
Hama-Kawasaki

5

100.0

Hanakotoba Shin-Yokohama

1

100.0

Hanakotoba Shin-Yokohama II

1

100.0

Hanakotoba Odawara

1

100.0

Verde Minowa

1

100.0

Verde Hotaka

1

100.0

Sunny Life Kita-Shinagawa

1

100.0

Sunny Life Kamakura

1

100.0

Nichii Home Nishikokubunji

1

100.0

SOMPO CARE Lavie Re
Kobeikawadani

1

100.0

SOMPO CARE Sompo no ie
Sayama1

100.0Royal Kawaguchi

1

100.0

NOAH GARDEN LEGEND

1

100.0

NOAH GARDEN L Grace

1

100.0

NOAH GARDEN Season Bell

1

100.0

Heartland Kawaguchi Meiseien

1

100.0

Rehabilitation Home Granda
Minamiurawa

1

100.0

Madoka Minamiurawa

1

100.0

Nichii Maison Inage

1

100.0

As a
Real estate
percentage
leasingof totalbusinessleasingrevenuebusiness(millionsrevenueof yen)(%)
Not
Notdisclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)

No. oftenants(Note 1)

1
1
5
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1
1

As a
Real estate
percentage
leasing
Occupancyof totalbusiness
rateleasingrevenue(%)
business(millions ofrevenue
yen)
(%)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)Name of real estate

17th fiscal period

18th fiscal period

From Feb. 1, 2023
To Jul. 31, 2023

From Aug. 1, 2023
To Jan. 31, 2024

No. oftenants(Note 1)

Occupancy
rate(%)

Hanakotoba Oppama

1

100.0

SOMPO CARE Sompo no ie S
Awajiekimae

1

100.0

SOMPO CARE Sompo no ie S
Kobekamisawa

1

100.0

NOAH GARDEN CASA RICH

1

100.0

Niigata Rehabilitation Hospital

1

100.0

SHIP Senri Building

1

100.0

Total

57

100.0

As a
Real estate
percentage
leasingof totalbusinessleasingrevenuebusiness(millionsrevenueof yen)(%)
Not
Notdisclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
Not
Not
disclosed disclosed(Note 2)
(Note 2)
2,428
100.0

No. oftenants(Note 1)

1
1
1
1
1
1
57

As a
Real estate
percentage
leasing
Occupancyof totalbusiness
rateleasingrevenue(%)
business(millions ofrevenue
yen)
(%)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
Not
Not
100.0 disclosed disclosed(Note 2)
(Note 2)
100.0
2,427
100.0

(Note 1) “No. of tenants” indicates the number of tenants of each building based on the lease agreements. For the section of healthcare facilities in which the trustee of
each owned asset and HCM conclude a lease agreement (master lease agreement) with an aim to have HCM sublease to the master lease company (section of
paid nursing home with nursing care for Smiling Home Medice Adachi), the master lease company (operator) is counted as a tenant, and accordingly indicated as
the number of tenants; while for the properties subject to pass-through-type master lease agreement where rents from end tenants are received intact, inprinciple, the total number of end tenants is indicated as the number of tenants. However, for the sections that are not subject to the lease agreement (master
lease agreement) between the trustee and HCM, the number of lessees leasing a building from the trustee is counted as the number of tenants and indicatedaccordingly.
(Note 2) “Real estate leasing business revenue” and “As a percentage of total leasing business revenue” for each property is not disclosed as consent for disclosure of leasing
business revenue has not been obtained from tenants. The total is the sum of amounts received as rent per period based on the lease agreements.

4. Contract Amounts and Market Values of Specified Transactions
The following table shows the contract amounts and market values of specified transactions by HCM as of January
31, 2024.
Classification

Type

Contract amount (thousands of yen) (Note 1)

Interest rate swap
transaction
Non-market transaction
Floating receivable;
fixed payable
Total

Due after 1 year

Market value(thousands of yen)
(Note 2)

34,050,000

29,600,000

23,75834,050,000

29,600,000

23,758(Note 1) The contract amount for interest rate swap transactions is based on the notional principal amount.
(Note 2) The value is calculated by the counterparty of the relevant transaction contract based on the prevailing market interest rate.

5. Status of Other Assets
As of January 31, 2024, there are no other specified assets for investment other than those listed in "3. Details of Real
Estate and Other Assets,” above.

6. Status of Asset Holdings by Country and Region
Not applicable - there are no specified assets for investment held outside of Japan.

Capital Expenditures for Held Real Estate
1. Capital Expenditures
Of capital expenditures associated with repair work currently planned for assets owned by HCM as of January 31, 2024,
the following are the major estimated amounts. The estimated construction costs include the portion separately charged
to expenses in accounting.
Name of real estate (Location)
SHIP Senri Building(Toyonaka-shi, Osaka)
Hanakotoba Odawara(Odawara-shi, Kanagawa)Royal Kawaguchi(Kawaguchi-shi, Saitama)
SOMPO CARE Lavie Re
Kobeikawadani(Kobe-shi, Hyogo)
Hanakotoba Oppama(Yokosuka-shi, Kanagawa)

Estimated construction costs(thousands of yen)
Total
Payment
Total amountamountduring period
already paid

PurposeScheduled period

Renewal of ventilating
facilities
Renovation of exterior
walls and rooftop
waterproofing
Renewal of air conditioners
in common areas

From: May. 2024
To: Jun. 2024

50,000--

From: Feb. 2024
To: Jul. 2024

47,700--

From: Jun. 2024
To: Jul. 2024

27,000--

Renewal of air conditioners
in common

From: Jun. 2024
To: Jul. 2024

23,000--

Renewal of LED lighting incommon areas

From: Jun. 2024
To: Jul. 2024

6,000

-

-

2. Capital Expenditures During Period
Of construction work falling under the category of capital expenditures conducted in the current fiscal period for assets
owned by HCM as of January 31, 2024, the following are the major amounts.
Name of real estate (Location)

Construction costs(thousands of yen)

Purpose

PeriodSOMPO CARE La vie Re Machidaonoji(Machida-shi, Tokyo)

Renewal of air conditioners incommon areas

From: Oct. 2023
To: Oct. 2023

29,494

SHIP Senri Building(Toyonaka-shi, Osaka)

Renovation of hot water piping

From: Oct. 2023
To: Jan. 2024

28,466

GreenLife Moriguchi(Moriguchi-shi, Osaka)
Nichii Home Nishikokubunji(Kokubunji-shi, Tokyo)
Other real estate

Renewal of two boilers
Roof repair
Total

3. Reserves for Long-term Repair Plans
Not applicable.

From: Oct. 2023
To: Nov. 2023
From: Nov. 2023
To: Dec. 2023-

14,3008,514
106,889
187,664

Transactions During the Period
1. Transactions of Real Estate and Asset-Backed Securities, Infrastructure Assets andInfrastructure-Related Assets
Not applicable.

2. Transactions of Other Assets
Not applicable.

3. Survey of Specified Asset Value(1) Real estate
Not applicable.

(2) Other
1) Name of surveying party
Akasaka Audit LLC
2) Overview of survey results and method
Transactions requested for investigation were two interest rate swap transactions between August 1, 2023 and January
31, 2024. For these interest rate swap transactions, Akasaka Audit LLC was commissioned to conduct a survey regarding
the names of the counterparties, the contractual figures, and the terms of the transactions, as well as comparable prices
in accordance with Article 201, Paragraph 2 of the Investment Trusts Act. We have obtained a survey report based on the
Practical Guidelines for Professional Services 4460 "Practical Guidelines for Agreed-Upon Procedures for Survey of Valueof Specified Assets of Investment Trusts and Investment Corporations" issued by the Japanese Institute of Certified Public
Accountants (JICPA).
This survey is not part of an audit of financial statements and does not provide assurance as to the reasonableness ofprices or internal control systems.

4. Transactions with Interested Persons (Note 1)(1) Transactions with interested persons
Not applicable.

(2) Amount of fees paid
Classification

Total Amount of Fees Paid
(A)
(thousands of yen)Interest expenses (Note 3)

131,116

Borrowing expenses (Note 4)

58,591

Breakdown of Transactions with Interested Persons
Payment Recipient
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation

Payment Amount (B)(thousands of yen)

Share of Total
B / A (%)
(Note 2)

32,83625.04

39,606

67.60(Note 1) The term “interested persons” refers to interested persons for HCM’s asset management company as defined in Article 123 of Order for Enforcement of the Act
on Investment Trusts and Investment Corporations and Article 26, Paragraph 1, Item 27 of the Regulations Concerning Investment Management Report ofInvestment Trusts and Investment Corporations of The Japan Investment Trusts Association. The above table adds transactions with interested persons (including
special purpose companies to which interested persons are entrusted with asset management; however, this excludes the asset management company itself) as
defined in the internal rules of the asset management company.
(Note 2) Percentages (%) of each total amount are rounded to the second decimal place.
(Note 3) Payment Amount (B) includes amounts recorded as an expense in the current period, including accrued interest as well as interest paid.
(Note 4) Payment Amount (B) lists Borrowing expenses paid that were recorded as an expense in the current period.

5. Transactions with the Asset Management Company for its Concurrent Businesses
Healthcare Asset Management Co., Ltd., HCM's asset management company, does not concurrently engage in any Type1 Financial Instruments Business, Type 2 Financial Instruments Business, Building Lots and Buildings Transaction Business,or Specified Joint Real Estate Ventures, and there are no applicable transactions.

Other
1. Disclosure of Proprietary Investment Trust Beneficiary CertificatesNot applicable.

2. Notices(1) General Unitholders' Meeting
Not applicable.

(2) Investment Corporation Board of Directors
Not applicable.

3. Disclosure of Overseas Real Estate Holding Corporations and their Held Real Estate
Not applicable.

4. Handling of Fractional Amounts and Percentages
In this document, unless otherwise indicated, amounts are rounded down to the nearest unit and percentages are rounded to the nearest
whole number.

1. Financial Statements(1) Balance Sheet(Unit: thousands of yen)Previous fiscal period(As of Jul. 31, 2023)

Current fiscal period(As of Jan. 31, 2024)

AssetsCurrent assets
Cash and deposits

1,613,659

1,865,272

Cash and deposits in trust

234,734

276,880

Operating accounts receivable

51,92550,257

Prepaid expenses

122,748

135,567

Consumption taxes receivable

50,592

-

-

3,711

2,073,660

2,331,689

Derivative receivables
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust*1

40,397,268*1

40,549,061

Accumulated depreciation(6,063,477)(6,588,550)

Buildings in trust, net

34,333,790

33,960,510

129,916

131,216

Accumulated depreciation(21,190)(23,588)

Structures in trust, net

108,726

107,628

Machinery and equipment in trust

21,776

21,776

Accumulated depreciation(10,084)(11,173)

Machinery and equipment in trust, net

11,691

10,602Tools, furniture and fixtures in trust

399,983

425,537

Accumulated depreciation(177,267)(210,758)

Tools, furniture and fixtures in trust, net

222,715214,779

43,747,992

43,747,992-

719

78,424,916

78,042,233

Software

2,445

2,119

Total intangible assets

2,445

2,119

Security deposits

10,00010,000Long-term prepaid expenses

202,955

226,780

Derivative receivables

44,46578,03312

14257,432

314,828

78,684,795

78,359,180

Investment unit issuance costs

17,227

11,485Investment corporation bond issuance costs

13,53012,489Total deferred assets

30,75823,974Structures in trust

Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets

Investments and other assets

Deferred tax assets
Total investments and other assets
Total non-current assets
Deferred assets

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

80,789,213

80,714,844

(Unit: thousands of yen)Previous fiscal period(As of Jul. 31, 2023)

Current fiscal period(As of Jan. 31, 2024)

Liabilities
Current liabilities
Operating accounts payable

17,037

63,775

Short-term loans payable

2,000,000

2,000,000

Current portion of long-term loans payable

7,250,000

5,550,000

Accounts payable - other

111,882

92,903

Accrued expenses

271,803273,279863

898

Consumption taxes payable

17,558

8,969

Advances received

401,721400,015

Deposits received

162

162

Derivative liabilities

122-

10,071,151

8,390,002

Investment corporation bonds

2,000,000

2,000,000

Long-term loans payable

27,900,000

29,600,000

Tenant leasehold and security deposits

1,936,482

1,936,482

Tenant leasehold and security deposits in trust

167,616

167,616

Deferred tax liabilities

13,98825,716

Derivative liabilities

81,81957,986208

52

32,100,115

33,787,853

42,171,267

42,177,856

38,323,799

38,323,799

Income taxes payable

Total current liabilities
Non-current liabilities

Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders' capital
Allowance for temporary difference
adjustments-*3(51,408)

Other deduction from unitholders' capital(722,547)(834,351)

Total deduction from unitholders' capital(722,547)(885,760)

37,601,252

37,438,039

Unappropriated retained earnings(undisposed loss)

1,068,158

1,100,906

Total surplus

1,068,158

1,100,906

38,669,411

38,538,946

Deferred gains or losses on hedges(51,465)(1,958)

Total valuation and translation adjustments(51,465)(1,958)Unitholders' capital, net
Surplus

Total unitholders’ equity
Valuation and translation adjustments

Total net assets
Total liabilities and net assets
The accompanying notes are an integral part of these financial statements.

*2

38,617,946
80,789,213*2

38,536,987
80,714,844

(2) Statement of Income(Unit: thousands of yen)Previous fiscal period
From: Feb. 1, 2023
To: Jul. 31, 2023

Current fiscal period
From: Aug. 1, 2023
To: Jan. 31, 2024

Operating revenue
Leasing business revenues*12,428,260

Other revenue related to leasing business*1

10,337

Total operating revenue

2,438,597*1

2,427,916*1

10,4362,438,353

Operating expenses
Expenses related to leasing business
Asset management fee*1

820,379*1

832,122233,430

234,681

Asset custody fee

2,830

2,819

Administrative service fees

16,653

17,218

Directors’ compensation

5,400

5,400

Property tax

33,03333,292Other operating expenses

58,456

58,684

Total operating expenses

1,170,184

1,184,219

1,268,413

1,254,133

8

7

2,336

-

-

131

458

329

2,803

468

128,917

131,116

Interest expenses on investment corporation bonds

7,800

7,800

Amortization of investment unit issuance costs

5,742

5,742

Amortization of investment corporation bond issuance
costs

1,040

1,040

Borrowing expenses

58,83858,591

Total non-operating expenses

202,338204,291

Ordinary income

1,068,877

1,050,311

Income before income taxes

1,068,877

1,050,311

Income taxes - current

864

899

Income taxes - deferred

(7)

(1)

857

897

1,068,020

1,049,413

138

51,492

1,068,158

1,100,906

Operating income
Non-operating income
Interest income
Insurance income
Interest on tax refund
Reversal of distributions payable
Total non-operating income
Non-operating expenses
Interest expenses

Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)
The accompanying notes are an integral part of these financial statements.

(3) Statement of Unitholders' Equity
Previous fiscal period (from February 1, 2023, to July 31, 2023)(Unit: thousands of yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders' capital
Unitholders’capitalBalance at beginning ofcurrent period
Changes of items during
periodAllowance fortemporarydifference
adjustments

38,323,799

Other deduction Total deduction
from unitholders' from unitholders'
capitalcapital(10,945)(722,547)

Unitholders'
capital, net(733,493)

37,590,306

10,945

10,945-

10,945

10,945(722,547)(722,547)

37,601,252

Dividends of surplus
Reversal of allowancefor temporary
difference adjustments

10,945

Net income
Changes of items otherthan unitholders’ equity
during period, net
Total changes of items
during the period
Balance at end of current
period*1

10,94538,323,799-(Unit: thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus

Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Reversal of allowancefor temporary
difference adjustments
Net income
Changes of items otherthan unitholders’ equity
during period, net
Total changes of items
during the period
Balance at end of current
periodTotal valuation
Total unitholders’ Deferred gains or
and translation
equitylosses on hedges
adjustments

Total net assets

Unappropriatedretained earnings(undisposed loss)

Total surplus

1,289,825

1,289,825

38,880,132(1,278,741)(1,278,741)(1,278,741)(1,278,741)(10,945)(10,945)--

1,068,020

1,068,020

1,068,020

1,068,020

88,121

88,121

38,968,253(139,586)(139,586)(139,586)(221,667)(221,667)(210,721)(139,586)(139,586)(350,307)

1,068,158

1,068,158

38,669,411(51,465)(51,465)

38,617,946

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

Current fiscal period (from August 1, 2023, to January 31, 2024)(Unit: thousands of yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders' capital
Unitholders’capitalBalance at beginning ofcurrent period
Changes of items during
periodAllowance fortemporarydifference
adjustments

38,323,799

Other deduction Total deduction
from unitholders' from unitholders'
capitalcapital-(722,547)

Unitholders'
capital, net(722,547)

37,601,252(51,408)(51,408)(111,804)(111,804)(111,804)

Dividends of surplus
Distributions in excessof earnings fromallowance fortemporary difference
adjustments
Distributions in excessof earnings from other
distributions(51,408)

Net income
Changes of items otherthan unitholders’ equity
during period, net
Total changes of items
during the period
Balance at end of current
period*1-(51,408)(111,804)(163,213)(163,213)

38,323,799(51,408)(834,351)(885,760)

37,438,039(Unit: thousands of yen)

Valuation and translation
adjustments

Unitholders’ equity
Surplus

Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus

Changes of items otherthan unitholders’ equity
during period, net
Total changes of items
during the period
Balance at end of current
periodTotal net assets

Total surplus

1,068,158

1,068,158

38,669,411(1,016,666)(1,016,666)(1,016,666)(1,016,666)(51,408)(51,408)(111,804)(111,804)

1,049,413

1,049,413

Distributions in excessof earnings fromallowance fortemporary difference
adjustments
Distributions in excessof earnings from other
distributions
Net income

Total valuation
Total unitholders’ Deferred gains or
and translation
equitylosses on hedges
adjustments

Unappropriatedretained earnings(undisposed loss)

1,049,413

1,049,413(51,465)(51,465)

38,617,946

49,50649,50649,50632,74732,747(130,465)

49,50649,506(80,958)

1,100,906

1,100,906

38,538,946(1,958)(1,958)38,536,987

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

(4) Statement of Cash Distributions(Unit: yen)Type

Previous fiscal period
From: Feb. 1, 2023
To: Jul. 31, 2023

Current fiscal period
From: Aug. 1, 2023
To: Jan. 31, 2024

1,068,158,773

1,100,906,451

163,213,000

113,602,000

51,408,500-

111,804,500

113,602,000

III. Incorporation into unitholders’ capital-

49,506,929

Reversal of allowance for temporary
difference adjustments-

49,506,929

1,179,879,000[3,282]

1,162,982,500[3,235]

1,016,666,000[2,828]1,049,380,500[2,919]51,408,500

-

[143]

[-]

111,804,500

113,602,000

[311]

[316]

51,492,773

2,019,022

I.

Unappropriated retained earnings

II.

Distributions in excess of earnings
Allowance for temporary difference
adjustments
Other deduction from unitholders’ capital

IV. Distributions[Distributions per unit]
Distributions of earnings[Distributions of earnings per unit]
Allowance for temporary difference
adjustments[Distributions in excess of earnings per unit
(Allowance for temporary difference
adjustments) ]Distributions in excess of earnings fromother distributions[Distributions in excess of earnings per unit
(Distributions in excess of earnings fromother distributions) ]V.

Retained earnings carried forward

Type

Calculation method for distributions(Note 1)

Previous fiscal period
From: Feb. 1, 2023
To: Jul. 31, 2023

Current fiscal period
From: Aug. 1, 2023
To: Jan. 31, 2024

In accordance with the cash distributions policy
described in Article 36, Paragraph 1 of its Articles ofIncorporation, HCM determines that the amount of
distributions shall exceed the amount equivalent to
90% of its distributable profit as stipulated in Article
67-15 of the Act on Special Measures Concerning
Taxation, and shall be up to its profits as defined in
Article 136, Paragraph 1 of the Investment Trust
Act. Following this policy, HCM has decided that, of
profits as defined in Article 136, Paragraph 1 of theInvestment Trust Act, it shall distribute
1,016,666,000 yen, which is the maximum integral
multiple of 359,500 units issued and outstanding as
distributions of earnings. Accordingly, distributionsof earnings per unit were 2,828 yen.
In addition, HCM is to make distributions in excessof earnings, of which the amount is to be
determined by HCM as an amount equivalent to net
asset deduction items (as defined in Article 2,
Paragraph 2, Item (30) (b) of the Ordinance on
Accountingsof Investment
Corporations),
considering the impact of net asset deduction items
on distributions, pursuant to the policy for cash
distributions in excess of earnings provided in
Article 36, Paragraph 2 of its Articles ofIncorporation. During the current fiscal period,
since a change in deferred gains or losses on hedges
was recorded as net asset deduction items, HCM
decided to make distributions of allowance fortemporary difference adjustments in the amount of
51,408,500 yen. As a result, distributions in excessof earnings per unit (allowance for temporary
difference adjustments) came to 143 yen.
Furthermore, in accordance with the policy for cash
distributions in excess of earnings provided in
Article 36, Paragraph 2 of its Articles ofIncorporation, HCM is to make its distributions inexcess of earnings (return of capital that falls under
the category of distributions reducing unitholders’capital for tax purposes) in each period on acontinuous basis, as a rule.
During the current fiscal period, HCM decided to
distribute 111,804,500 yen, an amount roughly
equivalent to 20% of depreciation recorded in thecurrent fiscal period, as distributions in excess ofearnings. Accordingly, distributions in excess ofearnings per unit (of distributions in excess ofearnings from other distributions) came to 311 yen.
As a result, distributions per unit came to 3,282 yen.

In accordance with the cash distributions policy
described in Article 36, Paragraph 1 of its Articles ofIncorporation, HCM determines that the amount of
distributions shall exceed the amount equivalent to
90% of its distributable profit as stipulated in Article
67-15 of the Act on Special Measures Concerning
Taxation, and shall be up to its profits as defined in
Article 136, Paragraph 1 of the Investment Trust
Act. Following this policy, HCM decided to
distribute
1,049,380,500
yen,
which
is
approximately
theentireamountofunappropriated retained earnings after deducting
the amount of reversal of allowance for temporary
difference adjustments from the amount of
unappropriated retained earnings for the current
period, as distributions. Accordingly, distributionsof earnings per unit were 2,919 yen.
Furthermore, in accordance with the policy for cash
distributions in excess of earnings provided in
Article 36, Paragraph 2 of its Articles ofIncorporation, HCM is to make its distributions inexcess of earnings (return of capital that falls under
the category of distributions reducing unitholders’capital for tax purposes) in each period on acontinuous basis, as a rule.
During the current fiscal period, HCM decided to
distribute 113,602,000 yen, an amount roughly
equivalent to 20% of depreciation recorded in thecurrent fiscal period, as distributions in excess ofearnings. Accordingly, distributions in excess ofearnings per unit (of distributions in excess ofearnings from other distributions) came to 316 yen.
As a result, distributions per unit came to 3,235 yen.

Distributions in excess of earnings are distributed up to the amount equivalent to 20% of the depreciation recorded in the accounting period
immediately before the accounting period when HCM will pay said distributions, sufficiently taking into consideration the amount of capital
expenditure necessary for maintaining and improving the competitiveness of HCM’s assets under management, the financial position of HCM
and other factors.
However, distributions in excess of earnings may be conducted up to an amount lower than the above amount or may not be conducted when
the implementation of distributions in excess of earnings up to the said amount is judged to be inappropriate based on the economic
environment surrounding HCM, trends of the real estate market and leasing market, status of HCM’s assets under management and financial
conditions.

(Note 2)

Under the rules of The Investment Trusts Association, closed-end investment corporations are allowed to conduct distributions in excess ofearnings up to an amount equivalent to 60% of the depreciation recorded on the last day of the accounting period.

(5) Statement of Cash Flows(Unit: thousands of yen)Previous fiscal period
From: Feb. 1, 2023
To: Jul. 31, 2023

Current fiscal period
From: Aug. 1, 2023
To: Jan. 31, 2024

Cash flows from operating activities
Income before income taxes
Depreciation

1,068,877

1,050,311

560,456

566,527

Amortization of investment corporation bond issuance
costs

1,040

1,040

Borrowing expenses

58,83858,591

Amortization of investment unit issuance costs

5,742

5,742

Interest income

(8)

(7)

Interest on tax refund

-

(131)

136,717

138,916

Decrease (increase) in operating accounts receivable

(872)

1,667

Decrease (increase) in consumption taxes receivable(50,592)

50,592

Decrease (increase) in prepaid expenses(1,848)724

Increase (decrease) in operating accounts payable(38,640)

46,737

Increase (decrease) in accounts payable - other(3,173)(677)

Increase (decrease) in consumption taxes payable(87,715)(8,589)

Increase (decrease) in accrued expenses(23,739)

1,376

Increase (decrease) in advances received

4,232(1,705)Decrease (increase) in long-term prepaid expenses

9,801

10,011Other, net

(501)

4,380

1,638,615

1,925,508

Interest income received

87Interest on tax refund received-

131(136,718)(138,817)

(703)

(864)

1,501,201

1,785,965

Purchase of property, plant and equipment in trust(184,121)(206,988)

Net cash provided by (used in) investing activities(184,121)(206,988)

Proceeds from short-term loans payable

2,000,000-

Repayments of short-term loans payable(2,000,000)-

Proceeds from long-term loans payable-

7,250,000

Repayments of long-term loans payable-(7,250,000)(2,655)(105,971)

Dividends paid

(1,278,065)(1,179,247)

Net cash provided by (used in) financing activities(1,280,721)(1,285,218)

Net increase (decrease) in cash and cash equivalents

36,358

293,758

1,644,419

1,680,777*1 1,680,777*1 1,974,536

Interest expenses

SubtotalInterest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities

Cash flows from financing activities

Borrowing expenses

Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
The accompanying notes are an integral part of these financial statements.

(6) Notes to Financial Statements[Organization]
Healthcare & Medical Investment Corporation (hereinafter, “HCM”) was established under the Act on Investment Trusts andInvestment Corporations (Act No. 198 of 1951, as amended; hereinafter, the “Investment Trust Act”) with Healthcare AssetManagement Co., Ltd. (hereinafter, the “Asset Management Company” or “HAM”) as the organizer on December 9, 2014. HCM
was listed on the Real Estate Investment Trust Securities Market of Tokyo Stock Exchange, Inc. (hereinafter, the “Tokyo Stock
Exchange”) on March 19, 2015 (securities code: 3455).
The total number of investment units issued and outstanding as of the end of the fiscal period ended January 2024 (August 1,
2023 to January 31, 2024) (hereinafter, the “18th fiscal period” or the “current fiscal period”) stands at 359,500 units.
[Basis of Presentation]
The accompanying financial statements have been prepared in accordance with the provisions set forth in the Investment Trusts
Act, the Financial Instruments and Exchange Act of Japan and other related accounting regulations, and in conformity withaccounting principles generally accepted in Japan (hereinafter, “Japanese GAAP”), which are different in certain aspects as to theapplication and disclosure requirements from International Financial Reporting Standards (hereinafter, “IFRS”) or accounting
principles generally accepted in the United States of America (hereinafter, “U.S. GAAP”).
The accompanying financial statements are the translation of the financial statements presented in the securities report of theInvestment Corporation submitted to the Kanto Local Finance Bureau, which have been prepared in compliance with Japanese
GAAP, translated into English.
Amounts less than one thousand yen have been omitted. As a result, the totals presented in the accompanying financial
statements in yen do not necessarily agree with the sums of the individual amounts. HCM does not have subsidiaries and thus
does not prepare consolidated financial statements.
The accounting periods of HCM are six-month periods ending at the end of February and the end of August of each year.
[Going Concern Assumption]
Not applicable.
[Summary of Significant Accounting Policies]
1. Method of depreciation of non(1) Property, plant and equipment
current assets
The straight-line method is adopted.
The useful life of principal property, plant and equipment is as follows.
Buildings in trust
5-69 years
Structures in trust
10-53 years
Machinery and equipment in trust
10 years
Tools, furniture and fixtures in trust
6-15 years(2) Intangible assets
The straight-line method is adopted.
2. Accounting for deferred assets

3. Standards for revenue andexpense recognition(1) Investment unit issuance costs
Depreciated evenly over 3 years.
(2) Investment corporation bond issuance costs
Amortized using the straight-line method over the maturity period.
(1) Accounting for property taxes
For property tax, city planning tax, depreciable asset tax on real estate owned, theaccounting is that, of the tax amount assessed and determined, the amountcorresponding to the concerned accounting period is expensed as expenses related to
the leasing business.
In connection with the acquisition of real estate, including trust beneficiary interests inreal estate, the amount equivalent to real property tax for the initial fiscal year, which
was settled with the seller, is not recorded as expenses but included in the cost of
acquisition of the concerned real estate. The amount equivalent to property tax includedin the cost of acquisition of real estate was not applicable for the previous or the current
fiscal period.

4. Method of hedge accounting

5. Scope of cash and cash
equivalents stated in thestatement of cash flows
6. Other matters serving as thebasis for preparation of financial
statements(2) Accounting standard for revenue recognition
The contents of major performance obligations concerning revenue arising fromcontracts with customers of HCM and the general timing to satisfy such performanceobligations (general timing to recognize the revenue) are as follows:
Sale of real estateWith regard to the sale of real estate, revenue is recorded when the buyer (customer)
obtains control of the real estate as a result of HCM fulfilling the delivery obligation set
forth in the contract pertaining to the sale of real estate.
(1) Hedge accounting approach
Deferred hedge accounting.
(2) Hedging instruments and hedged items
Hedging instrument: Interest rate swap transactions
Hedged items: Interest on loans(3) Hedging policy
HCM conducts interest rate swap transactions for the purpose of hedging the risks
provided in its Articles of Incorporation, pursuant to the basic policy of risk
management.
(4) Method of assessing hedge effectivenessHedge effectiveness is assessed by comparing the cumulative fluctuation of cash flows
for hedging instruments and the cumulative fluctuation of cash flows for hedge items
and confirming the ratio of both fluctuations.
Cash and cash equivalents in the statement of cash flows are comprised of cash on handand cash in trust, demand deposits and deposits in trust, and short-term investments witha maturity of three months or less from the date of acquisition that are readily convertible
into cash and that are subject to an insignificant risk of changes in value.
(1) Accounting policy for trust beneficiary interests in real estate
Concerning trust beneficiary interests in real estate owned, all accounts of assets andliabilities within trust assets, as well as all accounts of revenue and expenses from thetrust assets are recognized in the relevant line item account of the balance sheet andthe statement of income.
The following material items for the trust assets recognized in the relevant line item
account are separately listed on the balance sheet.
1) Cash and deposits in trust2) Buildings in trust; structures in trust; machinery and equipment in trust; tools,
furniture and fixtures in trust; land in trust, construction in progress in trust3) Tenant leasehold and security deposits in trust(2) Accounting for non-deductible consumption tax
Non-deductible consumption taxes on the acquisition of assets is included in the cost of
the acquisition of each asset.

[Additional Information][Provision and Reversal of Allowance for Temporary Difference Adjustments]
Previous fiscal period (from February 1, 2023, to July 31, 2023)
1. Reasons, related assets and amounts of reversal
Due to the recognition of a change in deferred gains or losses on hedges (net asset deduction items), which was a result ofapplying hedge accounting to the assessment of interest rate swap transactions, 51,408 thousand yen of allowance fortemporary difference adjustments have been recorded in the statement of cash distributions.
2. Method of reversal
In accordance with the elimination of deferred losses on hedges (net asset deduction items) by period-end reassessment of
said interest rate swap transactions in the next period onward, a corresponding amount of allowance for temporary difference
adjustments will be reversed.
Current fiscal period (from August 1, 2023, to January 31, 2024)
1. Reasons, related assets and amounts of reversal
Due to the decrease of deferred losses on hedges of 49,506 thousand yen within the statement of cash distributions from theassessment of fair value of interest rate swap transactions to which hedge accounting is applied, 49,506 thousand yen ofallowance for temporary difference adjustments for elimination of the amount has been reversed.
2. Method of reversal

In accordance with the elimination of deferred losses on hedges (net asset deduction items) by period-end reassessment of
said interest rate swap transactions in the next period onward, a corresponding amount of allowance for temporary difference
adjustments will be reversed.
[Balance Sheet]*1 Government grants received related to assets acquired were deducted from the carrying amount of property, plant andequipment. The amount deducted from the carrying amount was below.
(Unit: thousands of yen)Previous fiscal period(As of Jul. 31, 2023)
Buildings in trust

Current fiscal period(As of Jan. 31, 2024)

10,041

10,041*2 Minimum net assets of at least 50 million yen as required by the Investment Trust Law(Unit: thousands of yen)Previous fiscal period(As of Jul. 31, 2023)

Current fiscal period(As of Jan. 31, 2024)

50,00050,000*3 Allowance for temporary difference adjustments
Previous fiscal period (from February 1, 2023, to July 31, 2023)
1.

Reasons, related assets and amounts(Unit: thousands of yen)
Related assets

ReasonInitialamountBalance at Reserved Reversed Balance at
beginning amount in amount in end of
Reason forof current
current
current
current
reversal
periodperiodperiodperiodChanges in

Loss on interest-rate
Deferred gains or losses
swaps recognized at theon hedges
end of current period

25,683

10,945-(10,945)-

Total

25,683

10,945-(10,945)-

the fairvalue ofderivativetransactions-

2. Method of reversal(1) Deferred gains or losses on hedges
The allowance will be reversed corresponding to future changes in the values of the hedging derivatives.
Current fiscal period (from August 1, 2023, to January 31, 2024)
1. Reasons, related assets and amounts

Related assets

ReasonDeferred gains or losses
on hedges

Initialamount(Unit: thousands of yen)
Balance at Reserved Reversed Balance at
beginning amount in amount in end of
Reason forof current
current
current
current
reversal
periodperiodperiodperiodChanges in

Loss on interest-rate
swaps recognized at theend of current period

25,683-51,408-51,40825,683-51,408-51,408the fairvalue ofderivativetransactio
ns

Total
2. Method of reversal(1) Deferred gains or losses on hedges-

The allowance will be reversed corresponding to future changes in values of the hedging derivatives.
[Statement of Income]*1 Breakdown of operating income (loss) from the real estate leasing business(Unit: thousands of yen)Previous fiscal period
From: Feb. 1, 2023
To: Jul. 31, 2023

Current fiscal period
From: Aug. 1, 2023
To: Jan. 31, 2024

A.

Operating revenue from real estateleasing businessLeasing business revenues

2,428,260

2,427,916

10,337

10,4362,438,597

2,438,353

Property tax

168,336

168,303

Outsourcing expenses

37,02937,088

Repair expenses

26,08327,027

Insurance expenses

10,377

10,426

Depreciation

560,130

566,201

18,421

23,076820,379

832,122

1,618,218

1,606,230

Rent revenue
Other revenue related to leasing business
Other revenue
Total operating revenue from real estateleasing business
B. Operating expenses from real estateleasing business
Expenses related to leasing business

Other expenses related to leasing businessTotal operating expenses from real estateleasing business
C. Operating income (loss) from real estateleasing business [A-B][Statement of Unitholders’ Equity]*1 Total number of investment units authorized and total number of investment units issued and outstanding(Unit: thousands of yen)Previous fiscal period
From: Feb. 1, 2023
To: Jul. 31, 2023
Total number of investment units
authorized
Total number of investment units
issued and outstanding

Current fiscal period
From: Aug. 1, 2023
To: Jan. 31, 2024

10,000,000 units

10,000,000 units

359,500 units

359,500 units[Statement of Cash Flows]*1 Reconciliation of cash and cash equivalents at end of period and relevant amount on the balance sheet(Unit: thousands of yen)Previous fiscal period
From: Feb. 1, 2023
To: Jul. 31, 2023

Current fiscal period
From: Aug. 1, 2023
To: Jan. 31, 2024

Cash and deposits
Cash and deposits in trust
Restricted deposits in trust (Note)

1,613,659

1,865,272

234,734(167,616)

276,880(167,616)

Cash and cash equivalents

1,680,777

1,974,536(Note) Restricted deposits in trust refer to deposits in trust reserved for refunds of leaseholds received from tenants.

[Operating Lease Transactions]Non-cancellable operating leases (lessor side)(Unit: thousands of yen)Previous fiscal period
As of Jul. 31, 2023

Current fiscal period
As of Jan. 31, 2024

Due within 1 year
Due after 1 year

1,933,571

1,755,665

10,824,184

9,946,351

Total

12,757,756

11,702,017[Financial Instruments]
1. Our policy on financial instruments(1) Policy for financial instruments
Pursuant to the policy of conducting stable and sound financial management, HCM raises funds for asset acquisition,
repayment of loans by means of loans from banks, issuance of investment corporation bonds or issuance of new investment
units. In respect of financing loans and issuing investment corporation bonds, HCM pays attention to extending periods,
fixing interest rates and diversifying repayment dates in order to secure financial stability and avoid the risk of rise in interest
rates in the future.
Derivative transactions shall be limited to those invested in for the purpose of hedging the risk of fluctuations in interest
rates on HCM’s loans.
(2) Description of financial instruments and associated risks, and risk management system
Loans and proceeds from issuance of investment corporation bonds are used primarily for the acquisition of trust
beneficiary interests in real estate and repayment of debts.
Although borrowings and investment corporation bonds are exposed to liquidity risks on the repayment or maturity date,the impact of rising market interest rates on the management of HCM is limited through appropriate management of theratio of interest-bearing liabilities, and such risks are controlled through diversification of repayment and redemption dates.
Although borrowings with floating interest rates are exposed to interest rate fluctuation risks, the ratios of loan balanceswith floating rates and fixed rates against all loans are adjusted according to the financing environment. Furthermore,derivative transactions (interest rate swap transactions) have been used for part of loans with floating rates to avoid interest
fluctuation risks and to fix interest payment. Execution/management of derivative transactions carried out for the purposeof hedging interest rate fluctuation risks is conducted pursuant to provisions that stipulate the basic policy of risk
management.
Although tenant leasehold and security deposits as well as tenant leasehold and security deposits in trust are deposits fromtenants and are exposed to liquidity risks at the time of refunding upon tenants’ vacancies, HCM controls liquidity risks by
securing liquidity at hand to a certain degree and other measures.
For deposits, such risks are controlled by setting lower limits to the credit rating of financial institutions at which deposits
are made (excluding deposits for settlement).
(3) Supplementary explanation to fair value of financial instruments
Certain assumptions are adopted in the calculation of the fair value of financial instruments. Accordingly, there may becases where the concerned values will differ when different assumptions are adopted.

2. Fair value of financial instruments
Carrying amount, fair value and difference between the two were as follows. Notes to "Cash and deposits," "Cash anddeposits in trust" and “short-term loans payable” have been omitted because their fair values approximate their bookvalues. This is due to their nature as cash and as accounts settled over the short term.
Previous fiscal period (from February 1, 2023, to July 31, 2023)(Unit: thousands of yen)

Carrying amount

Fair value

Difference(1) Current portion of long-term loans payable

7,250,000

7,250,033

33(2) Investment corporation bonds

2,000,000

1,970,200(29,800)(3) Long-term loans payable

27,900,000

27,889,740(10,259)

37,150,000

37,109,974(40,025)(37,476)(37,476)-

Total liabilities(4) Derivative transactions

Current fiscal period (from August 1, 2023, to January 31, 2024)(Unit: thousands of yen)

Carrying amount

Fair value

Difference(1) Current portion of long-term loans payable

5,550,000

5,546,730(3,269)(2) Investment corporation bonds

2,000,000

1,969,000(31,000)(3) Long-term loans payable

29,600,000

29,594,919(5,080)37,150,000

37,110,649(39,350)

23,75823,758-

Total liabilities(4) Derivative transactions(Note 1) Method of calculation of the fair value of financial instruments and matters concerning derivative transactions(1) Current portion of long-term loans payable; (3) Long-term loans payable
For those with floating interest rates that reflect market interest rates within a short period of time, the book value is deemed to be areasonable approximation of the fair value as there are no significant changes in HCM’s credit standing after borrowing; therefore, thebook value is used as the fair value equivalent. Those with fixed interest rates are calculated by discounting the sum of principal and interest(*) at a reasonable rate estimated for a similar loan that is made corresponding to the remaining period.
(*) For long-term loans with floating interest rates to which special treatment for interest rate swaps is applied (please refer to “Derivative
Transactions” below), the sum of principal and interest under the interest rates after the interest rate swaps are indicated.
(2) Investment corporation bonds
Figures are calculated based on the reference statistics of transactions provided by the Japan Securities Dealers Association.
(4) Derivative transactions
Please refer to “Derivative Transactions” below.
(Note 2) Amount of repayment of borrowings and other interest-bearing liabilities scheduled to be due after the account closing datePrevious fiscal period (As of July 31, 2023)(Unit: thousands of yen)
Due after 1 year Due after 2 years Due after 3 years Due after 4 years
Due within 1 year
and within 2 years and within 3 years and within 4 years and within 5 years

Due after
5 years

Investment
corporation bonds
Long-term loans
payable

-

-

-

-

-

2,000,000

7,250,000

5,550,000

6,400,000

5,900,000

6,050,000

4,000,000

Total

7,250,000

5,550,000

6,400,000

5,900,000

6,050,000

6,000,000

Current fiscal period (As of January 31, 2024)(Unit: thousands of yen)
Due after 1 year Due after 2 years Due after 3 years Due after 4 years
Due within 1 year
and within 2 years and within 3 years and within 4 years and within 5 years
Investment
corporation bonds
Long-term loans
payableDue after
5 years

-

-

-

-

-

2,000,000

5,550,000

6,400,000

5,900,000

6,050,000

11,250,000-Due within 1 year

Due after 1 year Due after 2 years Due after 3 years Due after 4 years
and within 2 years and within 3 years and within 4 years and within 5 years

5,550,000

Total

6,400,000

5,900,000

6,050,000

11,250,000

Due after
5 years

2,000,000[Securities]
Previous fiscal period (As of July 31, 2023)
Not applicable.
Current fiscal period (As of January 31, 2024)
Not applicable.
[Derivative Transactions]
1. Derivative transactions to which hedge accounting is not applied
Previous fiscal period (As of July 31, 2023)
Not applicable.
Current fiscal period (As of January 31, 2024)
Not applicable.
2. Derivative transactions to which hedge accounting is applied
The following table shows the contracted amount or principal amount equivalent or the like set forth in the contract as of
the balance sheet date for each hedge accounting method.
Previous fiscal period (As of July 31, 2023)
Method ofhedge
accounting(Unit: thousands of yen)Contract amount

Derivative Instruments

Hedged item

Due after 1
year

Fair value

Method ofcalculation for thefair value

Principle
accounting
methodInterest rate swap
transaction
Floating receivable;
fixed payable

Long-term loans
payable30,050,000

24,300,000(37,476)

Based on theprice presented
by corresponding
financial
institutions

Specialtreatment forinterest rate
swaps

Interest rate swap
transaction
Floating receivable;
fixed payable

Long-term loans
payable1,000,000-(Note)-

31,050,000

24,300,000(37,476)-

Total

Current fiscal period (As of January 31, 2024)
Method ofhedge
accounting
Principle
accounting
method(Unit: thousands of yen)Contract amount

Derivative Instruments
Interest rate swap
transaction
Floating receivable;
fixed payable

Hedged item

Long-term loans
payableTotal

Due after 1
year

Fair value

Method ofcalculation for thefair value

34,050,000

29,600,000

23,758

Based on theprice presented
by corresponding
financial
institutions

34,050,000

29,600,000

23,758-(Note) Since those with special treatment of interest rate swaps are treated integrally with hedged long-term loans payable, the market values of suchare shown as included in the fair value in “(3) Long-term loans payable” in “[Financial Instruments], 2. Fair value of financial instruments” above.

[Retirement Benefits]
Previous fiscal period (As of July 31, 2023)
Not applicable.
Current fiscal period (As of January 31, 2024)

Not applicable.
[Tax-Effect Accounting]
1. Breakdown of deferred tax assets and deferred tax liabilities(Unit: thousands of yen)Previous fiscal period
As of Jul. 31, 2023

Current fiscal period
As of Jan. 31, 2024

Deferred tax assets
Non-deductible accrued enterprise tax
Deferred gains or losses on hedges

12

14

25,77818,242

Subtotal deferred tax assets

25,791

18,256

Valuation allowance(25,778)(18,242)12

14(13,988)(25,716)(13,976)(25,702)

Total deferred tax assets
Deferred tax liabilities
Deferred gains or losses on hedges
Net deferred tax assets (liabilities)

2. Breakdown of major components that caused any significant differences between the statutory tax rate and the effective
income tax rate
(Unit: %)Previous fiscal period
As of Jul. 31, 2023
Statutory tax rate

Current fiscal period
As of Jan. 31, 2024

31.46

31.46

(31.44)(31.43)

Other

0.06

0.06

Effective income tax rate

0.08

0.09

[Adjustments]
Deductible distributions payable[Share of Profit (Loss) of Affiliates Accounted for Using Equity Method]
Previous fiscal period (As of July 31, 2023)
Not applicable.
Current fiscal period (As of January 31, 2024)
Not applicable.
[Related-Party Transactions]
1. Parent company, major corporate unitholders.
Previous fiscal period (from February 1, 2023, to July 31, 2023)
Not applicable.
Current fiscal period (from August 1, 2023, to January 31, 2024)
Not applicable.
2. Affiliated company and other
Previous fiscal period (from February 1, 2023, to July 31, 2023)
Not applicable.
Current fiscal period (from August 1, 2023, to January 31, 2024)
Not applicable.

3. Fellow subsidiary company and other
Previous fiscal period (from February 1, 2023, to July 31, 2023)
Not applicable.
Current fiscal period (from August 1, 2023, to January 31, 2024)
Not applicable.
4. Director, major individual unitholder and other
Previous fiscal period (from February 1, 2023, to July 31, 2023)
Not applicable.
Current fiscal period (from August 1, 2023, to January 31, 2024)
Not applicable.
[Asset Retirement Obligations]
Previous fiscal period (As of July 31, 2023)
Not applicable.
Current fiscal period (As of January 31, 2024)
Not applicable.

[Investment and Leasing Properties]
HCM owns healthcare facilities (48 properties in total) primarily in the Three Major Metropolitan Areas and Core Cities. The
carrying amount, amount of increase (decrease) during the period and fair value of these investment and leasing properties
are as follows:(Unit: thousands of yen)Previous fiscal period
From: Feb. 1, 2023
To: Jul. 31, 2023

Current fiscal period
From: Aug. 1, 2023
To: Jan. 31, 2024

Carrying amount
Balance at beginning of period
Amount of increase (decrease)during period
Balance at end of period
Fair value at end of period

78,788,993

78,424,916(364,076)(382,683)

78,424,916

78,042,233

88,769,000

89,543,000(Note 1) “Carrying amount” is the amount of the cost of acquisition, less accumulated depreciation.
(Note 2) Out of the amount of increase (decrease) during the previous fiscal period, the amount of decrease is mainly attributable to depreciation(560,130 thousand yen). Out of the amount of increase (decrease) during the current fiscal period, the amount of decrease is mainly
attributable to depreciation (566,201 thousand yen) and loss on disposal of fixed assets (4,865 thousand yen).
(Note 3) “Fair value at end of period” is the appraisal value or survey value by an outside real estate appraiser.

The profit (loss) concerning investment and leasing properties is as stated in “Statement of Income” above.
[Revenue Recognition]
Previous fiscal period (from February 1, 2023, to July 31, 2023)
Information has been omitted due to the immateriality of the eligible revenue.
Current fiscal period (from August 1, 2023, to January 31,2024)
Information has been omitted due to the immateriality of the eligible revenue.
[Segment Information]
1.

Segment information
Disclosure has been omitted because HCM operates a single segment, which is the real estate leasing business.

2.

Related information

Previous fiscal period (from February 1, 2023, to July 31, 2023)(1) Information on products and services
Disclosure has been omitted because net sales to external customers for a single products and services category
exceeds 90% of operating revenue on the statement of income.
(2) Information on geographic areas
1) Operating revenues

2)

Disclosure has been omitted because net sales to external customers in Japan exceeds 90% of operating
revenue on the statement of income.
Property, plant and equipment
Disclosure has been omitted because the amount of property, plant and equipment located in Japan exceeds

90% of the amount of property, plant and equipment on the balance sheet.
(3) Information on major customers
Disclosure has been omitted because consent has not been obtained from the tenant.

Current fiscal period (from August 1, 2023, to January 31, 2024)(1) Information on products and services
Disclosure has been omitted because net sales to external customers for a single products and services category
exceeds 90% of operating revenue on the statement of income.
(2) Information on geographic areas
1) Operating revenues
Disclosure has been omitted because net sales to external customers in Japan exceeds 90% of operating
revenue on the statement of income.
2)

Property, plant and equipment
Disclosure has been omitted because the amount of property, plant and equipment located in Japan exceeds

90% of the amount of property, plant and equipment on the balance sheet.
(3) Information on major customers
Name of customer

Revenues from operations

Related segment(Thousands of yen)

Sompo Care Inc.

Not disclosed(Note)

Real estate leasing

SHIP HEALTHCARE ESTATE, INC.

Not disclosed(Note)

Real estate leasing

GREEN LIFE Co., Ltd.

Not disclosed(Note)

Real estate leasing(Note)

Disclosure has been omitted because consent has not been obtained from the customer.

[Per Unit Information]
Previous fiscal period
From: Feb. 1, 2023
To: Jul. 31, 2023

Current fiscal period
From: Aug. 1, 2023
To: Jan. 31, 2024

Net assets per unit

107,421 yen

107,196 yen

Net income per unit

2,970 yen

2,919 yen

(Note 1) Net income per unit is calculated by dividing net income by the average number of investment units during the period (the daily weighted average
number of investment units). In addition, diluted net income per unit is not stated because there are no diluted investment units.
(Note 2) The basis for calculation of net income per unit is as follows:

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

Previous fiscal period
From: Feb. 1, 2023
To: Jul. 31, 2023

Current fiscal period
From: Aug. 1, 2023
To: Jan. 31, 2024

1,068,020

1,049,413--

1,068,020

1,049,413

359,500

359,500

(7) [Supplementary Schedules]
1) Securities(a) Stocks
Not applicable.
(b) Securities other than stocks
Not applicable.
2) Contracted amount and fair value of derivative transactions and forward exchange transactions(Unit: thousands of yen)Contracted amount (Note 1)
Classification

Type
Due after 1 year

Fair value(Note 2)

Transaction other than Interest rate swap transaction
market transaction
Floating receivable; fixed payable

34,050,000

29,600,000

23,758

Total

34,050,000

29,600,000

23,758(Note 1) The contracted amount for interest rate swap transactions is based on the notional principal amount.
(Note 2) The value is calculated by the counterparty of the relevant transaction contract based on the prevailing market interest rate.

3) Property, plant and equipment and intangible assets(Unit: thousands of yen)

Asset type

IncreaseduringperiodBuildings intrust

40,397,268

160,809

Structures intrust

129,9161,300-

131,216

23,5882,397

107,628-

21,776--

21,776

11,173

1,088

10,602-399,983

25,554-

425,537

210,758

33,491

214,779-

43,747,992-- 43,747,992-- 43,747,992

-

-

719

-

719

-

-

-

84,696,937

188,383

9,016 84,876,304

6,834,071

14,349--14,34912,229

326

2,119

-

14,349--14,34912,229

326

2,119

-

84,711,286

188,383

9,016 84,890,653

6,846,301

Property, plant and equipment

Machinery andequipment in
trust
Tools,
furniture andfixtures intrust
Land in trust
Trust
construction inprogressaccount
Subtotal

Intangible
assets

Accumulated depreciation
Balance at
Net balanceend ofat end ofor
For theperiodperiodaccumulated
periodamortization

Balance at
beginning of
periodSoftwareSubtotal
Total

Decreaseduringperiod

9,016 40,549,061

6,588,550

529,223 33,960,510

719

Notes

-

566,201 78,042,233

566,527 78,044,352

4) Other specified assets
Trust beneficiary interests in real estate are included in “3) Property, plant and equipment and intangible assets,” above.
5) Investment corporation bonds(Unit: thousands of yen)
Issue

Balance at Decrease Balance atInterest
Issuance date beginning of during
end ofrate
periodperiodperiodNo. 1 Unsecured Investment
Corporation Bond
(With pari passu conditions January 30,
between specified investment
2020
corporation bonds)(Social bond)Total

2,000,000- 2,000,000 0.780%

2,000,000- 2,000,000

Maturity
date

January 30,
2030

Use

Remarks

Repayment Unsecuredof loans
andpayable unguaranteed(Note) The maturity schedule for investment corporation bonds within five years of the balance sheet date are as follows.
(Unit: thousands of yen)
Due after 1 year andwithin 2 years

Due within 1 year
Investment
corporation bonds-

Due after 2 years andwithin 3 years-

Due after 3 years andwithin 4 years-

Due after 4 years andwithin 5 years--

6) Loans

Category

Short-termloans payable

LenderSumitomo Mitsui
Banking Corporation

Balance atIncrease
Decrease
Balance at
Average
beginning ofDrawdown
during period during period end of period interest Repayment Repayment
periodUse
RemarksDate(thousands of (thousands of (thousands of
rate
date
method(thousands of
yen)
yen)
yen)
(Note 1)yen)
Lump-sum
March 30,
March 30, repayment
Unsecured/
2,000,000
2,000,000 0.30%(Note 3)
2023
2024
on
Nonguaranteedmaturity

Subtotal
Sumitomo Mitsui
Banking Corporation

2,000,000
March 3,2017

Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited
Resona Bank, Limited
The Nishi-Nippon City
Bank, Ltd.

Current portion of long-term loans payable

Shinkin Central Bank

February 1,
2019-

2,000,000

1,000,000-

1,000,000

Lump-sum
0.89% January 31, repayment
Unsecured/(Note 3)(Note 2)2024
onNonguaranteedmaturity

2,550,000-

2,550,000-

1,100,000-

1,100,000-

550,000-

550,000-

500,000-

500,000-

Lump-sum
0.54% January 31, repayment
Unsecured/(Note 3)(Note 2)2024
onNonguaranteedmaturity

350,000-

350,000

The Bank of Fukuoka,
Ltd.

250,000-

250,000-

The Gunma Bank, Ltd.

250,000-

250,000-

The 77 Bank, Ltd.

200,000-

200,000-

Nippon Life Insurance
Company

January 29,
2021-

500,000-

Sumitomo Mitsui Trust
Bank, Limited-

850,000-

850,000

Resona Bank, Limited-

800,000-

800,000

Sumitomo Mitsui
Banking Corporation-

700,000-

700,000-

450,000-

450,000-

450,000--

450,000-

450,000-

450,000-

450,000-

300,000-

300,000-

1,000,000-

1,000,000-

100,000-

100,000

Subtotal

7,250,000

5,550,000

7,250,000

5,550,000

Sumitomo Mitsui Trust
Bank, Limited

850,000-

850,000-

Resona Bank, Limited

800,000-

800,000-

Sumitomo Mitsui
Banking Corporation

700,000-

700,000-

450,000-

450,000

450,000-

450,000

Lump-sum
0.54% January 31, repayment
Unsecured/(Note 3)(Note 2)2025
onNonguaranteedmaturity-

450,000-

450,000-

450,000-

450,000-

The Nishi-Nippon City
Bank, Ltd.
The Bank of Fukuoka,
Ltd.

January 31,
2020

San ju San Bank, Ltd.
The Higashi-Nippon
Bank, Limited
Nippon Life Insurance
Company
Sumitomo Mitsui
Banking Corporation

Shinkin Central Bank
The Nishi-Nippon City
Bank, Ltd.
The Bank of Fukuoka,Ltd.
San ju San Bank, Ltd.

January 31,
2022

January 31,
2020

0.35%

Lump-sum
January 31, repayment
Unsecured/(Note 3)2024
onNonguaranteedmaturity

500,000

Shinkin Central Bank

Long-term loans payable-

Lump-sum
0.54% January 31, repayment
Unsecured/(Note 3)(Note 2)2025
onNonguaranteed
450,000
maturity

0.39%

Lump-sum
January 31, repayment
Unsecured/(Note 3)2025
onNonguaranteedmaturityCategory
Lender

The Higashi-Nippon
Bank, Limited
Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui
Banking Corporation
The Dai-ichi Life
Insurance Company,
LimitedBalance atIncrease
Decrease
Balance at
Average
beginning ofDrawdown
during period during period end of period interest Repayment Repayment
periodUse
RemarksDate(thousands of (thousands of (thousands of
rate
date
method(thousands of
yen)
yen)
yen)
(Note 1)yen)
Lump-sum
January 31,
0.54% January 31, repayment
Unsecured/
300,000
300,000(Note 3)2020
(Note 2)2025
onNonguaranteedmaturity

January 29,
2021

Hiroshima Bank, Ltd.
The Bank of Yokohama,Ltd.
Nippon Life Insurance
Company
January 31,
2022
Sumitomo Mitsui
Banking Corporation
Sumitomo Mitsui
Banking Corporation

1,000,000--

1,000,000

700,000--

700,000

500,000--

500,000

500,000--

500,000

500,000--

500,000

1,000,000

1,000,000

100,000

100,000

Lump-sum
0.49% January 31, repayment
Unsecured/(Note 3)(Note 2)2026
onNonguaranteedmaturity

0.39%

Lump-sum
January 31, repayment
Unsecured/(Note 3)2025
onNonguaranteedmaturity

2,200,000--

2,200,000

900,000--

900,000

600,000--

600,000

400,000--

400,000

300,000--

300,000

300,000--

300,000--

Lump-sum
0.61% January 31, repayment
Unsecured/(Note 3)300,000 (Note 2)2027
onNonguaranteedmaturity
300,000

300,000--

300,000

San ju San Bank, Ltd.

300,000--

300,000

The Higashi-Nippon
Bank, Limited

200,000--

200,000

The 77 Bank, Ltd.

100,000--

100,000

600,000--

600,000

100,000--

Shinkin Central Bank

800,000--

800,000

Resona Bank, Limited

500,000--

500,000

The Bank of Fukuoka,
Ltd.

300,000--

300,000

300,000--

300,000

300,000--

250,000--

250,000

250,000--

250,000

100,000--

100,000

800,000--

800,000

600,000--

600,000

550,000--

550,000

Hiroshima Bank, Ltd.
The Dai-ichi Life
Insurance Company,
LimitedSumitomo Mitsui Trust
Bank, Limited
Resona Bank, Limited
Shinkin Central Bank

January 31,
2022

The Nishi-Nippon City
Bank, Ltd.
The Bank of Fukuoka,
Ltd.

Sumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui
Banking Corporation

March 30,
2022

The 77 Bank, Ltd.
The Dai-ichi Life
Insurance Company,
LimitedMarch 30,
2022

The Gunma Bank, Ltd.
The Bank of Yokohama,
Ltd.
Sumitomo Mitsui
Banking Corporation
Nippon Life Insurance
Company
Sumitomo Mitsui Trust January 31,
Bank, Limited
2023
Sumitomo Mitsui
Banking Corporation

Lump-sum
0.54% January 31, repayment
Unsecured/(Note 3)(Note 2)2026
onNonguaranteed
100,000
maturity

Lump-sum
0.82% January 31, repayment
Unsecured/(Note 3)(Note 2)2028
onNonguaranteed
300,000
maturity

0.72%

Lump-sum
January 31, repayment
Unsecured/(Note 3)2026
onNonguaranteedmaturityCategory
LenderBalance atIncrease
Decrease
Balance at
Average
beginning ofDrawdown
during period during period end of period interest Repayment Repayment
periodDate(thousands of (thousands of (thousands of
rate
date
method(thousands of
yen)
yen)
yen)
(Note 1)yen)

Resona Bank, Limited

400,000--

400,000

150,000--

150,000

1,500,000--

1,500,000

450,000--

450,000

350,000--

350,000

300,000--

300,000

250,000--

250,000

250,000--

250,000

Hiroshima Bank, Ltd.

150,000--

150,000

Sumitomo Mitsui
Banking Corporation

2,000,000--

2,000,000

Shinkin Central Bank

350,000--

350,000

The 77 Bank, Ltd.

350,000--

350,000

300,000--

300,000

250,000--

250,000--

250,000

250,000--

250,000

250,000--

250,000-

3,550,000-

3,550,000-

1,100,000-

1,100,000

Resona Bank, Limited-

550,000-

550,000

The Nishi-Nippon City
Bank, Ltd.

-

500,000-

500,000-

400,000-

400,000

Shinkin Central Bank-

350,000-

350,000

SBI Shinsei Bank,
Limited

-300,000-

300,000

The Gunma Bank, Ltd.

-

250,000-

250,000

The Bank of Fukuoka,
Ltd.

-

250,000-

250,000

Subtotal

27,900,000

7,250,000

5,550,000

29,600,000

Total

37,150,000

12,800,000

12,800,000

37,150,000

The Dai-ichi Life
Insurance Company,
LimitedSumitomo Mitsui Trust
Bank, Limited
Sumitomo Mitsui
Banking Corporation

January 31,
2023

Resona Bank, Limited
The 77 Bank, Ltd.

January 31,
2023

The Nishi-Nippon City
Bank, Ltd.
SBI Shinsei Bank,
LimitedResona Bank, Limited
The Nishi-Nippon City
Bank, Ltd.
The Bank of Fukuoka,
Ltd.

January 31,
2023

The Gunma Bank, Ltd.
SBI Shinsei Bank,
LimitedSumitomo Mitsui
Banking Corporation
Sumitomo Mitsui Trust
Bank, Limited

The 77 Bank, Ltd.

January 31,
2024

0.72%

Use

Remarks

Lump-sum
January 31, repayment
Unsecured/(Note 3)2026
onNonguaranteedmaturity

Lump-sum
1.10% January 31, repayment
Unsecured/(Note 3)(Note 2)2028
onNonguaranteedmaturity

Lump-sum
1.29% January 31, repayment(Note 3)
Unsecured/(Note 2)2029
onNonguaranteed
250,000
maturity

0.98%(Note 2)

July 31,2028

Lump-sum
repayment(Note 3)
Unsecured/on
Nonguaranteedmaturity(Note 1) ”Average Interest rates” are the lending rate for each loan agreement, shown rounded up to the second decimal place.
(Note 2) The interest rate for this borrowing is, in effect, fixed due to the execution of an interest rate swap agreement. The adjusted interest rate in considerationof swap transactions is stated.
(Note 3) The funds are to be used for the acquisition of properties and for the payment of a portion of the related expenses or repayment of existing loans.
(Note 4) The following is the amount of long-term loans payable (excluding “Current portion of long-term loans payable”) scheduled to be due for repayment ineach year within five years of the balance sheet date.

(Unit: thousands of yen)
Due after 1 year and Due after 2 year and Due after 3 years and Due after 4 years andwithin 2 years
within 3 years
within 4 years
within 5 years
Long-term loans
payable6,400,000

5,900,000

6,050,000

11,250,000