Impact Report

Issued in December 2022

Introduction

Index
１．Investment Philosophy and Impact (Qualitative Targets)

About the Investment Corporation and the Asset Management Company
Healthcare & Medical Investment Corporation (hereinafter, “HCM”) is a J-REIT specializing in
healthcare facilities listed in March 2015. It is operated by Healthcare Asset Management Co.,
Ltd. (hereinafter “HAM”), its asset management company invested in by Ship Healthcare
Holdings, Inc., NEC Capital Solutions Co., Ltd. and Sumitomo Mitsui Banking Corporation as
main sponsors.
HCM seeks to realize a society where all people can live vibrantly and with peace of mind bycontinuously investing in and stably owning over the long term healthcare facilities, including
facilities and housing for the elderly and medical service-related facilities, etc., which must be
enhanced and expanded to the super-aged society.

Investment Philosophy and Impact (QualitativeTargets)

Healthcare & Medical Investment Corporation

Representative

Yuji Fujise, Executive Director

Location
Listing date
Listed stock exchange
End of fiscal periodEnvironmental Initiatives at Warehousing Stage

7

Improving resilience (adaptability to disasters, etc.)

8

Use of Environmentally Friendly Materials

8

Stakeholder Engagement

9

March 19, 2015

Effects of Introducing EGAO link at each property (July 2019 - September 2022)

11

Tokyo Stock Exchange Real Estate Investment Trust Securities Market(Securities Code: 3455)

Initiatives in Collaboration with the Operators

13

Positive Impact of Investing in Healthcare Facilities

16

Initiatives at HAM

17

Governance System to Ensure Appropriate Asset Management

20

Initiatives at HCM and HAM

21

Compliance and Risk Management Systems

22

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

SDGs Social Finance Framework

24

November 28, 2013

JCR Social Finance Evaluation

24

Status of Allocation of Social Loan and Social Bond

25

Status of Social Finance（as of the end of October,2022）

25

January, July

150 million yen
SHIP HEALTHCARE HOLDINGS INC. (33.3%)
NEC Capital Solutions Limited (33.3%)
Sumitomo Mitsui Banking Corporation (5.0%)
Sumitomo Mitsui Finance and Leasing Company, Limited (4.8%)
SMBC Nikko Securities Inc. (4.8%)
Yoei Co., Ltd. (4.7%)
Ginsen Co., Ltd. (4.7%)
Kobe Tochi Tatemono Co., Ltd. (4.7%)
Muromachi Building Co., Ltd. (4.7%)
Investment management businessIn recent years, companies are required to independently solve social and environmental issues,
and movements to evaluate the medium- to long-term growth potential of companies based on
non-financial information in addition to the conventional evaluation indicators such as
performance and financial information are spreading.
HCM also decided to issue impact report once a year, in principle, as the first J-REIT to raise
funds through social finance in February 2019. This report shows the status of allocation of thefunds and the actions by HCM and HAM, the Asset Management Company, to solve social issues.

Issue period

69About Impact Report

Reporting period

6

Environmental Initiatives at HCM‘s Properties

10

Seiji Yoshioka, President & CEO

Details of businesses

Basic Policy for Environment

System Investment Utilizing ICT

Representative

Shareholders

5

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

Healthcare Asset Management Co., Ltd.

Capital4External Certifications

Tenant Engagement

Corporate nameLocation

2

Environmental Performance Targets/Results

４．Social

５．Governance[Profile of the Asset Management Company]

Establishment date

Policy on Actions for ESG

３．Environment[Profile of the Investment Corporation]
Corporate name2

２．Policy on Actions for ESG

From November 1, 2021 to October 31, 2022
Once a year in principle (every December)

６．Social Finance

７．Outcome Indicators
Ratio of Housing for the Elderly to the Elderly Population
Change in the Acquisition Amount and Number of Healthcare Facilities in
the J-REIT Market
８．Output Indicators
Properties Acquisition and Disposition during the Reporting Period (November 1,
2021 - October 31, 2022)
Properties Acquisition during the Reporting Period(November 1, 2021 - October 31, 2022)
Portfolio Map

26
26

27
27
29

Summary of Buildings and Their Leasing Status (as of the end of 15th FP)

30

Overview of Facilities and Housing for the Elderly (as of the end of 15th FP)

31

Overview of Medical Service-Related Facilities (as of the end of 15th FP)

32

Earnings Performance (as of the end of 15th FP)

32

Summary of Appraisal Report (as of the end of 15th FP)

33

Capital Expenditures of Assets Under Management (as of the end of 15th FP)

35

Company Profile of Operators (as of the end of 15th FP)

35

９．Current Status and Issues Surrounding Medical and Nursing Care
Various Issues Derived from Declining Birthrate and Aging Population

36

Various Issues in Nursing Care

38

Actions by the Government and Local Governments

39

1

１．Investment Philosophy and Impact (Qualitative Targets)

２．Policy on Actions for ESG

Investment Philosophy and Impact (Qualitative Targets)

Policy on Actions for ESGRealization of a Society Where All People Can Live Vibrantly and with Peace of Mind

Enactment of the "Basic Policy on ESG" incorporating the concept of SDGs
HAM enacted the “Basic Policy on ESG” in September 2018 in order to practice asset
management in consideration of Environment, Social and Governance. Upon the enactmentof the basic policy, HAM has incorporated the concept of SDGs based on the investment
philosophy of HCM.

HCM aims to serve as a conduit between the nursing care and medical service industries inwhich social needs are expected to increase and the capital markets, based on theenvironmental awareness that upgrading and expansion of healthcare facilities is further
required in order to respond to the growing demand for medical and nursing care services.
In other words, HCM aims to realize a society where all people can live vibrantly and withpeace of mind as well as secure stable revenue and achieve steady growth of assets undermanagement by promoting appropriate maintenance and management and new supply ofhealthcare facilities through stable investment and ownership of healthcare facilities with the
keywords of “nursing care," “medical service” and “health.""Basic Policy on ESG / 1. Basic Philosophy"
In order to realize a “society where all people can live vibrantly and with peace of mind,"which is the investment philosophy of HCM, HAM aims to contribute to the super-agedsociety and maximize unitholder value over the medium to long term through the promotionof provision of healthcare facilities as social infrastructure and construction of a portfolio
specializing in healthcare facilities.
HAM will collaborate with various in-house/outside stakeholders including operators andhospital personnel, the sponsors and executives and employees of HAM in order to practiceasset management in consideration of ESG including the reduction of environmental burden,
efforts toward resolution of social issues in a super-aged society and establishment ofgovernance system.
HAM Website / Basic Policy on ESG
http://www.hcam.co.jp/pdf/esg.pdf



ESG Promotion System
HAM designates the chief officer and executive officers on sustainability as follows.
Chief Officer of
Sustainability

President & CEO

Executive Officer of Head of Asset
Sustainability
Management
Performance
Department

The Chief Officer of Sustainability puts in place systems forpromoting sustainability and supervises the proposal andimplementation of various policies, targets and measures
The Executive Officer of Sustainability Performancesupervises the planning and implementation of various
measures for the promotion of sustainability

The Executive Officer of Sustainability Management puts in
Executive Officer of Head of Financial
place systems, regulations, etc. for promoting sustainability& Administration
Sustainability
and supervises the planning and implementation of
Department
Management
disclosure measures

Furthermore, HAM has established an ESG Committee which deliberates and drafts various
policies, targets and measures regarding sustainability.

2２． Policy on Actions for ESG
Policy on Actions for ESGOrganization Chart as of December 2022 (ESG Decision Making System) PDCA Cycle ESG Committee
Chairperson

Either a full-time director or the Executive Officer of Performance, designated by
the Chief Officer

Members(1) Full-time director(2) Executive Officer of Performance(3) Member of Asset Management Department(4) Member of Investment Department(5) Member of Financial & Administration Department(6) Member of Healthcare Business Promotion Department(7) Compliance Officer(8) Other person appointed by the Chairperson

Frequency of
meeting

At least once a month in principle

Fiscal 2021

Fiscal 2022 (Note)

Number of ESG Committee held

3 times

12 times

Number of Management review

Once

0 times

Twice／100％

Once／100％

Number of in house ESG training held
/Participation rate

（Note）Fiscal 2022 is described based on actual number from April 2022 to November 2022.

・The Committee reports to the Chief Officer of Sustainability and Executive Officer of
Sustainability Management with regard to various policies, targets, measures, etc. at least
once every three months.
・The committee reports to the Board of Directors at least once a year on various policies,
targets and measures.

3

２． Policy on Actions for ESG
Environmental Performance Targets/Results

Policy on Actions for ESGMateriality

Results

Issues that need to be solved

Environment

SocialGovernance

Basic Targets

Highly relevant SDGs

・Reduction of water resource
consumption
・Energy conservation and reduction of
CO2 emissions
・Response to natural disasters caused byclimate change (Resilience)・Waste management and reduction
・Elimination of the shortage of supply of
housing for the elderly against theelderly population
・Prevention of job separation due tonursing care through the promotion of
supply of nursing care facilities
・Improvement of business efficiency andreduction of work burden for nursing
care staff
・Prevention of abuse of residents andharassment of facility staff
・Response to the deterioration ofbuildings of hospitals, promotion ofearthquake resistance・Work-life balance, health of staff, etc.
・Transparency in decision making
・Fair transaction (Appropriate
management of conflicts of interest)
・Management of various risks (including
elimination of antisocial forces)

Item

TargetTotal floor area

EnergyGHG（Note2）

Water

2020
(standard year)

2021

Rate ofchange-187,280.75㎡

187,280.75㎡

0.0%

To make the total annual energy
data capture rate (%) 100% across
HCM’s real estate portfolio

80.2%

82.5%

2.9%

To make the total annual GHG
emission data capture rate (%)
100% across HCM’s real estate
portfolio

80.2%

82.5%

2.9%

To make the total annual water
consumption data capture rate (%)
100% across HCM’s real estate
portfolio

74.3%

76.6%

3.1%

(Note1) The data capture rate is calculated based on floor area.
(Note2) Abbreviation for Greenhouse Gas. Same below.

Long-term Targets：
Results
Item

TargetUnit

2020(standard
year)

2021

Rate ofchangeTotal floor area-㎡

187,280.75

187,280.75

0.0%Consumption（kWh）31,628,460

32,921,805

4.1%

EnergyTo achieve a 5% reduction
in total annual energy
consumption on an
intensity basis across
HCM’s real estate portfolio
relative to the baseline
year by the target year

Intensity（kWh/㎡）

210

213

1.4%

To achieve a 5% reduction
in total GHG emissions
generated by energy
consumption on an
intensity basis across
HCM’s real estate portfolio
relative to the baseline
year by the target year

Emissions（t-CO2e）11,368

11,483

1.0%

Intensity（t-CO2e/㎡）

0.076

0.074

△2.6%

Consumption（㎥）

418,711433,241

3.5%

Intensity
（㎥/㎡）

3.0

3.0

0.0%

(Source) Excerpt from the United Nations Information Centre’s "SDGs Posters, Logos, Icons and Guidelines")

GHG

Water

Not to increase annual
water consumption on an
intensity basis across
HCM’s real estate portfolio
relative to the baseline
year by the target year

(Note) The standard year is 2020, the starting year of the effect measurement period is 2021, and the target year is 2025.

4

２． Policy on Actions for ESG
External CertificationsGRESB Real Estate Assessment
In the 2022 GRESB Real Estate Assessment, HCM received a “1 Star” in GRESB Rating, which
is based on GRESB Overall Score and its quintile position relative to global participants.
HCM also received the highest “A Level” for the GRESB Public Disclosure, which assess thewidth of ESG disclosure.



BELS Evaluation
BELS (Building-housing Energy-efficiency Labeling System) is a third-party certification
program to rate houses and buildings in accordance with the Building Energy Efficiency Act's
requirement of effort to label energy efficiency. The rating is based on the BEI (Building
Energy Index) value calculated from primary energy consumption based on national building
energy consumption standards.
Evaluation and labeling are performed by registered housing evaluation agencies, designatedinspection agencies or registered building survey agencies that are members of The
Association for Evaluating and Labeling Housing Performance and have filed to perform BELS
services, and the evaluation results are indicated on a five-star scale (one to five stars).
The following HCM properties have been rated.

Property nameEvaluation

Date of being rated

December 6, 2022
NOAH GARDEN L Grace

December 6, 2022
NOAH GARDEN Season Bell5

３．Environment
Basic Policy for EnvironmentBasic Policy for Reducing Environmental Burdens


HCM &
HAM

Reducing Environmental Burdens

HCM strives for energy conservation and reduction of CO2 emissions by improving energy
efficiency at its properties and introducing facilities that contribute to energy saving. Also,
HCM aims for resource conservation and waste reduction with regard to capital expenditureof its properties and in the formulation and implementation of their repair plans.

Environmental Initiatives at HCM's Properties
Energy Saving Renovation Work

HCM has sequentially upgraded to energy- and water-efficient equipment in the rooms at its
properties for resident comfort.
Cumulative Upgrade Status by Equipment Type（million yen, excluding tax）
150

HCM &
HAM

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

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

HCM &
HAM

Upgrades to energy-efficient equipment（unit）
1,200

Room air conditioner Cost
Warm water washing toilet seat Cost

125

1,000

Electric water heater Cost
Room air conditioner Number

100

800

Warm water washing toilet seat Number

75

600

Electric water heater Number

50

400

25

200

0

0
9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

16th FP（Note）Figures are as of the end of each fiscal period, except the figures of 16th fiscal period being as of November
30, 2022.

6

３．Environment
Environmental Initiatives at Warehousing Stage

Environmental Initiatives at HCM's PropertiesGreen Lease

HCM &
HAM



Introduction of Green Lease Clauses for Warehousing
Properties

Sponsors

For HAM and HCM, sponsors entered into green lease clauses in building lease agreementswith operators at the warehousing stage.

HCM introduced the green lease agreement with the tenant that rent a whole building of“Kobe Gakuentoshi Building (Hapine Kobe Gakuentoshi)” (2021). This is truly a win-win
initiative which enables both HCM and the tenant to receive economic benefits while
reducing environmental burden.

Paid nursing home

【Sample of initiatives】
Heartland Kawaguchi Meiseien（Acquired in March 30, 2022）



Initiatives to Obtain Environmental Certifications for
Warehousing Properties

Sponsors

In development projects, HCM is working to obtain CASBEE, BELS and other environmental
certifications with the cooperation of developers, design companies and other parties.
Paid nursing home (to be developed)

・Based on the tenant’s lighting equipment usage conditions, which were obtained throughinterviews, we provisionally calculate that electricity consumption relating to lighting equipment
will be reduced by about 69% as a result of performing work to convert the common-area
lighting to LEDs.
・Among the benefits that the tenant is expected to receive with LED lighting that has a rated
life of 40,000 hours, including reduction of lighting equipment-related electricity fees andreduction of bulb replacement costs, a certain amount will be passed on to HCM in the form of ahigher rent in the lease, based on a green lease fee.
Green lease: Win-win action in which property owner and tenant work together to reduce
environmental burdens such as energy saving of real estate and improve theworking environment, and both sides can benefit from cost reductions, etc.

【Sample of initiatives】
PD house Nishitokyo（Pipeline property）

7

３．Environment
Improving resilience (adaptability to disasters, etc.)
Landslide Prevention Measures Prior to Acquisition

Use of Environmentally Friendly Materials
HCM &Operators

Landslide Prevention Measures (Hanakotoba Oppama)Part of the land of Hanakotoba Oppama, which HCM acquired on November 10, 2022, iswithin a landslide special warning zone and safety measures such as spraying mortar andinstalling a retaining wall were thus implemented between the steep east and south slopes.
However, for the sake of long-term investment in the healthcare facility and based on a
study on the impact of collapse of the slope, we decided to take additional prevention
measures to improve resilience and ensure long-term safety.
The free frame method was chosen for its stability and safety, Keikyu Construction Co., Ltd.,
which had experience in landslide prevention in the neighborhood was hired to conduct thesurvey, planning and construction, HAM received a report on the adequacy of the measuresfrom an independent third-party survey company, confirming that there were no problems,and made the decision that HCM would acquire the property.
【Before the implementing of the measures】



Environmentally friendly products were used when replacing the floors at GreenLife Moriguchi.

Environmentally friendly flooring materials: Loose Lay Tile LL Free 50NW-EX by TOLI Corporation

Half the amount of products weight consists of recycled materials, which reduced CO₂ emissions(recycled from discarded agricultural vinyl and scrap materials generated during manufacturing).

Using durable UV resin coating to reduce staining eliminated the need for wax maintenanceduring use.
Area of flooring materials used

2,328 ㎡Implementing stormwater countermeasure work (Sawayaka
Mekarikan)

20.5 Ton
17.7 Ton

Ratio of recycled materials

Usage of recycled materials

50 ％Reduction ratio of CO₂ emissions

10.2 Ton
Reduction amount of CO₂ emissions

53 ％9.4 Ton*Reduction ratio of CO₂ emissions means the comparison to the same merchandise without recycled materials.

Implemented
Landslide
Prevention
Measures

Stormwater countermeasure work at HCM's Properties

Gross weight of flooring materials

CO₂ emissions【After the implementing of the measures】



HCM &
HAM

Renovation Using Environmentally Friendly Flooring
Materials（Image of recycle）

HCM &
HAM



（Image of durable UV resin coating ）Facility Environment Improvement (Based on User Feedback) Using easy-to-clean flooring improved sanitation and reduced cleaning work.
 Using flooring that is better for wheelchairs increased activity in the facility.
 The small step from the hallway to the day room has been eliminated.

At Sawayaka Mekarikan, which incurred damage due to indoor
flooding above floor level during torrential rains in western Japanin July 2018, work was carried out to install new concrete-block
walls and U-shaped gutters (2021).
This initiative will proactively prevent the spread of damage whena disaster occurs, as well as help to ensure the safety and peace ofmind of tenants, employees, and the operator.

8

４．Social : Social Initiatives
Stakeholder Engagement

Basic PolicyTenant Engagement
HCM &
HAM

Initiatives for Solving the Challenges of an Aged Society

HAM believes that HCM’s continuous investment in healthcare facilities and its stable
management of assets will help towards solving the social challenges of an aged society.
Therefore, we have cooperated with various internal and external stakeholders including
unitholders, operators and hospital personnel, the sponsors, executives and employees.


Responsibilities of HCM and HAM to Key Stakeholders

Building Trust with Operators and Understanding Operations

HCM &
HAM

Healthcare facilities are assets that require special know-how and expertise to operate, so inorder to properly evaluate an asset on its business characteristics, it is necessary to evaluate
the operator's business capabilities and management stability.
Building a relationship of trust with the operator is essential for properly conducting due
diligence prior to acquisition and monitoring after acquisition.
HAM actively works to build trust by visiting the healthcare facility and meeting with thefacility manager and others in charge to gain an appropriate understanding of the facility's
operations.

HCM has built a stable portfolio through business due diligence andmonitoring.

Operators
Operations
capability

Management
stability

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

Financial status

Organizational
management

Business model

Compliance(Abuse prevention
measures)

Staff retainment・Development

9４．Social : Social Initiatives
System Investment Utilizing ICTIntroduction of “EGAO link”, the system forenhancing efficiency of nursing care services

HCM &Operators

HCM paid 44.6 million yen, the initial cost of capital expenditure for 2 properties owned by
HCM, in a lump sum, while the operator paid for the amount of increase in rent, thereby
leveling the payment of introduction cost and realizing early introduction. (2019)

System of EGAO link

A system enabling understanding of situation, record input and response to calls withsmartphones possessed by the staff by linking sleep sensor, nurse call and electronic medical
chart with nurse call gateway.

・Targeted facilities and amount of capital expenditure
ASHEIM Bunkyohakusan (completed introduction in July 2019, 20.9 million yen)
ASHEIM Hikarigaoka (completed introduction in August 2019, 25.6 million yen)
Total Amount of capital expenditure 46.5 million yenEffect of Introduction of EGAO link

The quality of nursing care services is expected to improve through the improvement ofbusiness efficiency of nursing care staff and the reduction of work burden through ICT
investments.

10

４．Social : Social Initiatives
Effects of Introducing EGAO link at each property (July 2019 - September 2022)
HCM &Operators

Effects of Introducing EGAO link at ASHEIM
Bunkyohakusan
Jul 31, 2019

Sep 30, 2020

Sep 30, 2021

Sep 30, 2022

YoY

48 people

43 people

43 people

49 people+6 people

１．Reduction of care staff①Number of residents②Ratio of staff

1.78：1

1.84：1

1.86：1

2.00：1-0.14③Full-time employees

14.5 people

12.5 people

13.5 people

16.0 people+2.5 people④Contract employees

2.0 people

2.0 people

1.0 person

0.0 people-1.0 person⑤Part-time employees

5.6 people

6.9 people

6.5 people

5.7 people-0.8 people⑥Temporary workers

2.0 person

0.0 people

0.0 people

0.0 people±0.0 people⑦Nursing staff

2.8 people

2.0 people

2.0 people

2.8 people+0.8 people⑧Staff per month

26.9 people

23.4 people

23.0 people

24.5 people+1.5 people⑨Total working hours

4,734 hours

4,118 hours

4,048 hours

4,312 hours+264 hours

to residents

２．Reducing burden of night-shift work for care satff①Number of night shifts②Total working
hours/ month③Regular inspection

2.5 people

2.0 people

2.0 people

2.0 people±0.0 people

40 hours

32 hours

32 hours

32 hours±0 hours

4 times

0 times

0 times

0 times±0 times

３．Improving quality of nursing care services①Individual activities②Polypharmacy③Hospitalization rate

20 hours

54 hours

117 hours

61 hours-56 hours

7.2 medications

6.4 medications

6.1 medications

5.5 medications-0.6 medications

5.2%

3.6%

7.8%

2.2%

-5.6%

1. Reduction of care staff
Compared with the previous fiscal year, Staff per month increased by 1.5 people, or 264
hours/month (-2.4 people, or -422 hours/month, from initial introduction).
Since the facility is designed to operate with a 2:1 staffing ratio, 24.5 people is the minimum
number of staff for the number of residents as of September 30, 2022.
As the COVID-19 pandemic has made it difficult to recruit and retain part-timers, our reform of
the staffing structure will include increasing the ratio of full-time employees through our strength
in hiring new graduates, aiming for a stable operation with a total of 24 to 25 people.

2. Reducing burden of night-shift work for care staff
The operator changed from a system with two night-shift positions and one semi-night-shift
position to a system with two night-shift positions by eliminating the semi-night-shift
position, and as of September 30, 2022, the operator continues to implement this system.
As of September 30, 2022, even after eliminating the semi-night shift, night-shift staff wereable to take 2 hours of break time every day.
Regular inspections were terminated on October 1, 2019, but as of September 30, 2022, theoperator had not received any complaints from clients or suggestions from theauthorities.
3. Improving quality of nursing care services
The operator have worked to improve operations with the goal of securing 2 hours per day, or
60 hours per month, for the provision of individual activities (activities aimed at revitalizing
each resident mentally and physically). When EGAO link was introduced, the number of hours
was 20 per month, but as of September 30, 2022, it had increased by 41 hours. Although
this is a significant decrease compared with the previous year, 60 hours is the basic amount for
stable provision.
The operator has taken steps to improve polypharmacy (harmful effects due to combining
multiple medications) by using sleep sensors and a medical records software database. With atarget of 6.0 or less for the average number of medications used, the operator is promoting
optimal use of medications in accordance with residents’ health condition in collaboration withpartner medical institutions and pharmacies, based on sleep data and medical records data.
As a result, as of September 30, 2022, the operator has achieved our target with 0.5
medications below the target.
As an index measuring the results of the initiatives implemented to date, the operator has
tracked “maintaining and increasing length of stay through improvement of the hospitalization
rate.” From June to August 2022, the rate sometimes rose to 3.0% to 4.5% due to COVID-19
cases (1.6% in October 2022).
■Future Initiatives
A database for the practice of science-based care is being completed. This is a phase in which
the operator is identifying trends for the entire facility and issues for individual residents basedon items such as cognitive function, nutritional status, food and water intake, activity level,
sleep status, drug use and elimination status, and refine care services to effectively promote
maintenance and improvement. The operator will also enhance education on using the data.

11

４．Social : Social Initiatives
Effects of Introducing EGAO link at each property (July 2019 - September 2022)
HCM &Operators

Effects of Introducing EGAO link at
ASHEIM Hikarigaoka
Jul 31, 2019

Sep 30, 2020

Sep 30, 2021

Sep 30, 2022

YoY

83 people

84 people

79 people

72 people-7 people

１．Reduction of care staff①Number of residents②Ratio of staff

2.04：1

2.17：1

2.04：1

1.76：1+0.28③Full-time employees

23.5 people

20.5 people

23.5 people

24.5 people+1.0 person④Contract employees

0.0 people

1.0 person

0.0 people

0.0 people±0.0 people⑤Part-time employees

11.6 people

13.7 people

12.2 people

12.4 people+0.2 people⑥Temporary workers

1.0 person

0.0 people

0.0 people

0.0 people±0.0 people⑦Nursing staff

4.4 people

3.4 people

3.0 people

3.4 people+0.4 people⑧Staff per month40.5 people

38.6 people

38.7 people

40.3 people+1.6 people⑨Total working hours

7,128 hours

6,794 hours

6,811 hours

7,093 hours+282 hours

to residents

２．Reducing burden of night-shift work for care satff①Number of night shifts②Total working
hours/ month③Regular inspection

3.5 people

3.0 people

3.0 people

3.0 people±0.0 people

56 hours

48 hours

48 hours

48 hours±0 hours

4 times

0 times

0 times

0 times±0 times

３．Improving quality of nursing care services①Individual activities②Polypharmacy③Hospitalization rate

56 hours

63 hours

71 hours

121 hours+50 hours

7.7 medications

6.9 medications

5.7 medications

5.6 medications-0.1 medications

7.1%

2.2%

2.2%

4.3%

+2.1%

1. Reduction of care staff
There was an increase of 1.6 people or 282 hours/month compared with the previous fiscal year
due to the use of 0.7 temporary nursing staff in instructional time for on-the-job training of new
nursing staff and a 1-person surplus due to the placement of new graduates on the care staff.
(OJT for nursing staff is scheduled to end on December 31, 2022, and 1 care staff member wastransferred on October 1.)
As the COVID-19 has made it difficult to recruit and retain part-timers, our reform of the staffing
structure will include increasing the ratio of full-time employees through our strength in hiring
new graduates, aiming for a stable operation with a total of 37 to 38 people.

2. Reducing burden of night-shift work for care staff
The operator changed from a system with three night-shift positions and one semi-night-shift
position to a system with two night-shift positions by eliminating the semi-night shift
position, and as of September 30, 2022, the operator continues to implement this system.
As of September 30, 2022, even after eliminating the semi-night shift, night-shift staff wereable to take 2 hours of break time every day.
Regular inspections were terminated on October 1, 2019, but as of September 30, 2022, theoperator had not received any complaints from clients or suggestions from theauthorities.
3. Improving quality of nursing care services
The operator has worked to improve operations with the goal of securing 2 hours per day, or
60 hours per month, for the provision of individual activities (activities aimed at revitalizing
each resident mentally and physically). When EGAO link was introduced, the number of hours
was 56 per month, but as of September 30, 2022, it had increased significantly to 121
hours. Note that in fiscal 2022, the average number of hours remained at approximately 70
hours due to the provision of individual activities such as long-distance outings in September
2022.
The operator has taken steps to improve polypharmacy (harmful effects due to combining
multiple medications) by using sleep sensors and a medical records software database. With atarget of 6.0 or less for the average number of medications used, the operator is promoting
optimal use of medications in accordance with residents’ health condition in collaboration withpartner medical institutions and pharmacies, based on sleep data and medical records data.
As a result, as of September 30, 2022, the operator has achieved our target with 0.4
medications below the target.
As an index measuring the results of the initiatives implemented to date, the operator has
tracked “maintaining and increasing length of stay through improvement of the hospitalization
rate.” April to July 2022 ranged from 1% to 2%, but the rate increased to 3.9% in August and4.3% in September due to COVID-19 cases before returning to normalcy at 1% in October.
■Future Initiatives
A database for the practice of science-based care is being completed. This is a phase in which
the operator is identifying trends for the entire facility and issues for individual residents basedon items such as cognitive function, nutritional status, food and water intake, activity level,
sleep status, drug use and elimination status, and refine care services to effectively promote
maintenance and improvement. The operator will also enhance education on using the data.

12

４．Social : Social Initiatives
Initiatives in Collaboration with the Operators


Efforts to Prevent Medication Errors at Facilities

Operators

Noah Konzer Co., Ltd. has developed a medication administration system called"Fukuyakkun" based on operation of its own facilities, to prevent medication errors by users
and improve the work efficiency of facility staff.



1. Development Background
Medication errors (i.e., mistakenly given or forgotten medications) should never happen, butthey do, mostly caused by human error, and checking to prevent medication errors has
been a major burden for staff at facilities.

HAM conducts a satisfaction survey of operators of its properties on a regular basis (inprinciple once a year), and shares the results of this survey (requests, issues, etc.) withthe property management company to increase operator satisfaction.
Survey results (conducted in February 2022)

2. Mechanism of Medication Error Prevention
When facility staff hand out medication to a resident, they use a mobile terminal to readthree QR codes: 1) for the resident, 2) for the staff and 3) for the medication bag in orderto prevent errors by checking whether the medication is not for the wrong person, being
administered at the wrong time, or a double dose.
In addition, three functions - 1) checking medication status on the computer, 2) checking
the list of missed medications on the mobile terminal, and 3) an email notification of missed
medication - can prevent forgotten medications.

Survey collection rate

Satisfaction NPS（Number of satisfaction－
Number of dissatisfaction ）Answers 28/
37 properties

Plus 16/28 properties■Answer

3. Effects of Introducing Fukuyakkun
The development of Fukuyakkun has made it possible for one staff member and one mobile
terminal to reliably check medications, improving operational efficiency at facilities wheremultiple staff members used to check medications multiple times.
It also enables centralized management of medication tasks, from medication receipt andinspection to distribution, support and completion checks, reducing time spent on
medication preparation, administration checks and residual medication checks.
The system has been recognized to protect not only residents but also facility staff frommedication errors, so as of November 15, 2022, it has been introduced at 520 facilities inJapan (according to the operator’s survey).

HAM &Operators

Tenant (Operator) Satisfaction Survey■No answer

Installation of negative pressure ventilator■Plus■Minus■NeutralHCM &Operators

As part of interior arrangements to isolate COVID-19-positive individuals or residents
suspected of infection, a simple HEPA ceiling-embedded negative pressure ventilator was
installed in short-term care rooms at Green Life Moriguchi.

13

４．Social : Social Initiatives
Initiatives in Collaboration with the Operators
Installation of In-House Power Generation Facilities

HAM &Operators

Of the 48 properties owned by HCM as of the end of November 2022, 46 properties (about
95.8%) are equipped with in-house power generation facilities, forming a system preparedfor emergencies.


ESG Promotion Activities for Tenants (Operators)

HAM &Operators

 ESG Workshops for Operators
HCM holds ESG workshops for operators of its properties to deepen their understanding and
to introduce and promote initiatives to address issues based on HAM's Basic Policy on ESG.



Contribution to
Local Communities

HCM &Operators

Employment support for people with disabilities

At “Green Life Moriguchi” and “SHIP Senri Building,” hydroponic cultivation of vegetables iscarried out as a job assistance project for people with disabilities.

GreenLife Moriguchi (GREEN LIFE Co., Ltd.) Distribution of SDGs Promotion Leaflets
HCM distributes "SDGs promotion leaflets" to operators of properties it owns to promote theSDGs during facilities use.
 Sponsorship of Music Concerts Organized by Operators
HAM sponsored the Nichii Home Autumn Music Festival 2022 organized by operator Nichii
Carepalace Company in October 2022.

GREEN FARM Senri Chuo (SHIP HEALTHCARE FOOD Co., Ltd.)

14

４．Social : Social Initiatives
Initiatives in Collaboration with the Operators

Combined-Use Facilities (Day Centers)

Combining Facilities with Daycares for children

Property name

As of the end of July 2022, 4 of the 47 properties owned by HCM were contributing to the
local community by housing daycare facilities.

SAWAYAKA Mekarikan

Combined-Use Facilities
Property nameContract area

Kobe Gakuentoshi Building

SOMPO CARE La vie Re Hama-Kawasaki
Royal Kawaguchi

AQUAMARINE Nishinomiyahama
ASHEIM Bunkyohakusan

SAWAYAKA Tachibanakan

Heartland Kawaguchi Meiseien
1769.00㎡

NOAH GARDEN LEGENDNOAH GARDEN L Grace

SHIP Senri Building

NOAH GARDEN CASA RICH



Combining Facilities with Clinics, Pharmacies, and Day Centers

The properties owned by HCM include some in which part of the area is leased to businesses
other than facilities/housing for seniors, such as clinics, pharmacies, and day centers.
These areas are open to not only residents of the facility but also the local community ingeneral, providing it with necessary medical and care services.
As of the end of July 2022, 8 of the 47 properties owned by HCM were contributing to the
local community by housing clinics or pharmacies.

NOAH GARDEN Season BellASHEIM Bunkyohakusan (Kids Harmony Hakusan)

Combined-Use Facilities (clinic, pharmacy)
Property nameContract area

Kobe Gakuentoshi Building
Smiling Home Medice Adachi
AIKOEN ICHIBANKAN Building
SOMPO CARE La vie Re Hama-Kawasaki
Hanakotoba Shin-Yokohama

2900.46㎡

Hanakotoba Shin-Yokohama II
Royal Kawaguchi
SHIP Senri Building

As of the end of July 2022, 9 of the 48 properties owned by HCM were contributing to the
local community by housing day centers.

15

４．Social : Social Initiatives
Positive Impact of Investing in Healthcare Facilities

HCM &Operators

Investment in Affordable Senior Housing

Operators

Efforts to Appoint Female Facility Managers

The scatter plots below show the monthly fees of HCM's main facilities on the horizontal axis
and the deviation compared with surrounding facilities on the vertical axis. Our investments
are diversified rather than skewing toward a high price range.

The percentage of female facility managers at HCM-owned properties reached 31.9% in
FY2022, and women are being actively promoted to managerial positions.

In particular, the facilities with reasonable monthly fees for their area (the lower-left shadedarea) are not only price-competitive but also affordable to a wide range of elderly people.
HCM defines these facilities as affordable facilities.

Proportion of Female Facility Managers at Properties Owned by HCM (Note1)

HCM and HAM believe that investing in these affordable facilities for the elderly can contributeto the development and revitalization of communities where people can continue to live.

Number of target
properties (Note2)

34

35

36

47

Number of male

23

23

25

32

67.6%

65.7%

69.4%

68.1%

11

12

11

15

32.4%

34.3%

30.6%

31.9%

Very
low
price

70

Low
price

Medium priceHigh priceFiscal 2019

Male ratio
Number of female

Deviation of usage fees from surrounding facilities

Female ratio

65

Fiscal 2020

Fiscal 2021

Fiscal 2022

(Note1) Created based on the disclosure statement of important matters for each facility obtained by HAM every
fiscal year.
(Note2) Covers properties owned by HCM at the end of each year, excluding Niigata Rehabilitation Hospital.
“SHIP Senri Building” covers Well House Senri-Chuo, a pay nursing home with care services.

60
55
50
45
40
35
30

100

150

200

250

300

350

400

450

500

Monthly usage fees (thousand yen)
Data source: Prepared by HAM based on "Paid Nursing Home Product Data: Average Monthly Costfor 60-month Nursing Care Residents" and "Average Monthly Cost for 120-month Independent
Residents" by Tamura Planning & Operating.

16

４．Social : Initiatives aimed at HAM Executives and Employees
Initiatives at HAM



HAM

Human Capital Development
Personnel Data (Diversity & Inclusion)

Number of executives
and employees (Note1)(Number of directly hired
executives andemployees)(Number of assigned
employees)
Number of maleFiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

15

16

18

19

8

9

10

14

7

6

8

ARES Certified Master

11

55.0%

5

First-Class Architect

1

5.0%

Property Manager

1

5.0%

Real Estate Consulting Master

1

5.0%

Certified Building Administrator

1

5.0%

Small and Medium Enterprise Management Consultant

1

5.0%

Certified International Investment Analyst

1

5.0%

Chartered Member Analyst of the Securities Analysts Associationof Japan2

10.0%

Medical Management Specialist, Second Grade

1

5.0%

Medical Management Specialist, Third Grade

4

20.0%

15

17

18

94.4%

94.7%

1

1

1

1

6.7%

6.3%

5.6%

5.3%

Number of manager

5

5

6

6

Number of male

5

5

6

6

100.0%

100.0%

100.0%

100.0%

0

0

0

0

0.0%

0.0%

0.0%

0.0%

2

2

1

4

1

1

0

0

6.3%

5.9%

0.0%

0.0%

40.1

27.5

25.6

35.9

2 years and5 months

3 years and0 months

3 years and4 months

3 years and3 months

11.7

16.3

10.9

11.2

55.9%

71.1%

53.3%

56.1%

100%

100%

100%

100%

0%

0%

0%

0%

Male ratio
Number of female
Female ratio
Number of new hires
Number of employees
leaving the company
Annual turnover rate
(Note2)Average monthly
overtime hours
Average employment
Average paid leaveacquired
Acquisition Rate
Health examination /screening rate
Occupational injury
frequency (Note3)

Ratio
65.0%

93.8%

Female ratio

Number of Employees Holding Qualifications as of the End of October 2022
（including employees on temporary assignment from the sponsors, etc.)
13

14

Number of female

In order for employees to improve their professional skills, HAM recommends the acquisitionof qualifications that are closely related to our business, such as a Real Estate Notary licenseor ARES Certified Master license.

Real Estate Notary

93.3%

Male ratio

Human Capital Development Initiatives / Framework for Ensuring that Executives andEmployees Are Suitably Motivated(Note1) Numbers of employees are as of the end of each fiscal year (March 31).
(Note2) The ratio of employees leaving the company to total employees as of the end of each fiscal period(March 31) are indicated.
(Note3) Occupational injury frequency = Number of occupational injury ÷ Total actual working hours × 1,000,000

17

４．Social : Initiatives aimed at HAM Executives and Employees
Initiatives at HAM

Fiscal
2020

Fiscal2021

Fiscal2022

Number of compliance workshops

22

23

14

Number of participation in external
compliance workshops

13

26

6

(Note) The number of compliance workshops held in fiscal 2022 and the number of participants in external training
are based on the actual number of meetings held and participated in from April to November 2022.

Fiscal 2020
（Number ofparticipants/
Participationrate）(Note)Fiscal 2021

Compliance program of each fiscal year

20 /100％

21 /100％

22 /100％

FSA Administrative Guidelines, Supervisory
Guidelines, Basic Policy on Securities Monitoring,etc.

18 /100%

21 /100％

19 /100％

Basic Policy on Customer-Oriented Business
Operation

20 /100％－

19 /100％

Exclusion of anti social force

19 /100％

21 /100％

21 /100％

Insider Trading Regulations and Corporate
Related Information Management System

20 /100％

21 /100％

20 /100％

Information Management as an AssetManagement Company

Fiscal 2021

Fiscal 2022

Management of Personal Information and Data

20 /100％

21 /100％

20 /100％

Disclosure / Fair Disclosure

18 /100％

20 /100％－

Regulations on Conduct under the Financial
Instruments and Exchange Act, Issuance
Disclosure and Distribution Disclosure

19 /100％

20 /100％－

Appropriate Management of Related Party
Transactions and Conflicts of Interest

18 /100％

20 /100％

19 /100％

Accidents, Scandals and Clerical Errors

19 /100％

21 /100％－

Complaint Handling and Financial ADR System

21 /100％

22 /100％－

Prevention of Money Laundering andConfirmation at Time of Transaction

18 /100％

20 /100％

20 /100％

FATCA

19 /100％

20 /100％－

Reporting Obligations to FSA, MLIT, etc.,
Statutory Ledgers and Licensing Matters

20 /100％

20 /100％－

Rules on Entertainment/Gifts and Prevention ofBribery

20 /100％

20 /100％－－

18 /100％

Items of Special Note Regarding Real Estate
Fund Managers

20 /100％

20 /100％－

Confirmation Tests (first quarter)

16 /100％

16 /100％

16 /100％

Confirmation Tests (second quarter)

16 /100％

18 /100％

14 /100％

Confirmation Tests (third quarter)

16 /100％

18 /100％－

Confirmation Tests (fourth quarter)

16 /100％

18 /100％－

Main theme of compliance workshops

In order to foster and improve self-directed compliance awareness, we hold monthly
compliance workshops and rigorously implement customer-oriented business operations(fiduciary duty) for all executives and employees.

Main theme of compliance workshops

Fiscal 2020
（Number ofparticipants/
Participationrate）(Note)Fiscal 2022

Human rights

20 /100％

21 /100％－

20 /100％(Note) The participation rate is calculated using the number of full-time directors and employees as the denominatorand the number of participants as the numerator. Follow-up training is provided for those absent on the dayof the workshop, and the number of participants includes those who attended the follow-up training.

18

４．Social : Initiatives aimed at HAM Executives and Employees
Initiatives at HAM
 Actions Aimed at Securing Human Resources
HAM has continued to consider new hires for the purpose of ensuring that we have sufficienthuman resources and to promote the development of an employee-friendly working
environment, such as actively encouraging employees to take paid leave (paid leave usage
rate in FY2021: 56.1%), with the aim of improving the motivation of employees andexecutives and retaining them on a long-term basis.
In addition, as part of our human resources strategy, we are working to enhance our asset
management operations by accepting highly specialized employees with diverse backgrounds
from the sponsor companies.
 Initiatives for Fair Personnel Evaluation
HAM has revised its personnel evaluation system, clarifying the roles and abilities required
for each employee level, to evaluate job performance, base element, and comprehensive
achievement of three performance targets which consist of single-year targets, mediumterm targets and skill development. The final evaluation for the year for each employee isdetermined through regular interviews with and feedback from primary and secondary
evaluators, making it a fair personnel evaluation process.

 Employee Satisfaction Survey
We conducted a questionnaire survey on employee satisfaction in and 2021 through a third-party
investigation agency in order to understand employee’s perceptions of work as well as theconditions of the workspace and to realize an office environment that is conducive to work.
Employees were questioned anonymously on items such as resonance with the corporate
philosophy, worthwhileness of work and personal relationship and atmosphere of the workplace.
The results of the survey were shared with all employees. We will continue introducing measuresthat will further increase the satisfaction of employees.
 Arrangement of the Office Environment
HAM implements the following in an effort to establish an environment that is conducive tothe work of employees.
・Introduction of a system of remote working
・All executives and employees are lent laptops with secure communication environments
via VPN connection.
・Monitors, etc. are loaned to those who wish to ensure a working environment equivalent
to an office.
・Installation of multiple low-concentration ozone generators (Airness)
・Installation of large-scale monitors in meeting rooms
Introduction of the online
meeting system

 Benefits and work-life balance Introduction of Cumulative Investment System
We have introduced a cumulative investment system that allows directly hired executives
and employees to purchase HCM investment units. It is expected that the introduction of thissystem will assist executives and employees with asset-building and make them more
conscious of improving business performance, which we believe will contribute to thecontinuous growth of HCM and improved unitholder value. Moreover, with the aim ofpromoting investment unit acquisition by employees and thereby enhancing the impact of
the system, we began providing financial incentives in April 2021.
 Introduction of Corporate Defined Contribution Pension Plan
HAM has introduced a corporate defined contribution pension plan as one of its benefit
programs, with the aim of contributing to the lifelong stability and welfare of its executives
and employees.
 Vacation System
HAM provides a vacation system which includes leave for weddings, funerals, pregnancy,
childbirth, childcare, sick or injured children and family care.
 Premium Friday
As part of our efforts to reform the way we work, we encourage employees to leave theoffice early on "Premium Friday" (the last Friday of the month).
 Health Examinations
Health examinations with items of inspection exceeding the legal requirement are
conducted once every year.



Digitization of Internal Meeting Materials

In September 2022, HAM implemented a paperless system for meeting materials at its
officer meetings, Management Committee meetings and Board of Directors meetings inorder to reduce environmental impact. As a result of this initiative, the total number of
paper sheets used for approximately three months was reduced by 5,670 sheets (approx.
10.7%) year-on-year.
用紙使用枚数
Total number of paper sheets
60,00057,095YoY
前年比削減枚数-6,00055,74455,00053,10650,000-5,67047,43645,000-5,000-4,000-3,000-2,63840,000-2,000-1,35135,000-1,00030,00002019 FP2019年度

2020 FP
2020年度

2021 FP
2021年度

2022 FP
2022年度(Note) Calculated based on the total for the three-month period from August 21 to November 20 of each fiscal year.

19

５．GovernanceAppropriate Management of Conflicts of InterestGovernance System to Ensure Appropriate Asset Management

Corporate GovernanceCorporate Governance

HCM &
HAM

Related party is defined in broader terms than interested party, etc. under theInvestment Trust Law, and established a system to carry out transactions after
conducting rigorousexaminations.
For details of the decision-making process, please refer to “Decision-Making Flow
Concerning Acquisition of Assets Under Management" on the next page.
interested party, etc.
under the Investment
Trust Law

The institutional operation of HCM is conducted by the General Meeting of Unitholders
comprisedof HCMʼs unitholders in addition to the Board of Directors comprised of one executive
directorand two supervisory directors, as well as the accounting auditor.
Directorsʼ compensations are stipulated by the Articles of Incorporation. The maximum
compensation for the executive director is 500,000 yen per month per person and the monthly
compensation is determined by the Board of Directors. The maximum compensation for thesupervisory directors is 500,000 yen per month per person and the monthly compensation isdetermined by the Board of Directors.
Furthermore, as employment is forbidden to HCM by the Act on Investment Trusts andInvestment Corporations, HCM does not employ any employees but entrusts the management of
its assets to the Asset Management Company.
From November 1, 2020, the system in which President & CEO of HAM concurrently serves as
executive director of HCM was dissolved.
Asset managementcompany

Appropriate
Check and Balance
Executive Director

Yuji FujisePresident & CEO

Seiji Yoshioka

The supervisory directors were replaced at the General Meeting of Unitholders held in October
2022. Supervisory Director Shida, who served four terms, retired and Supervisory Director Sato
was appointed. The executive directors and supervisory directors attended all board meetings held.
Status of Attendancein Board of Directors
Meetings

Title

Name

Profession・Expertise

GenderYears in
officeExecutive
Director

Yuji Fujise

Shimada Hamba & Osajima Lawyer

MaleSupervisory
Director

Sachihiko
Fujimoto

Hayabusa Asuka Law Offices
Counsel, Certified public accountant

2 yearsand1 monthMale

8 years

16 times/16 times(100%)

Supervisory
Director

Kaori Sato

Torikai Law Office Partner, Lawyer

Female1 monthOnce/Once (100%)

16 times/16 times（100％）[Reference: Information on Former Supervisory Directors (Dec 2014 to Oct 2022)]
Yasuo Shida

Blakemore & Mitsuki Partner,
LawyerMale

7 yearsand11months

 Compensation for the Asset Management Company
Total compensation
14th Fiscal Period(ended Jan. 2022)

15th Fiscal Period(ended Jul.2022)
203,435 thousand yen(Note) Apart from the above, 66,960 thousand yen of asset management fees were generated in the 15th fiscal
period (ended Jul. 2022) for property acquisition included in the book value of real estate, etc.

 Compensation for the Auditor
Total compensation

Title

Name

Accounting
auditorPricewaterhouseCoopers
Aarata LLC

14th Fiscal Period(ended Jan. 2022)

15th Fiscal Period(ended Jul.2022)

7,500 thousand yen

9,500 thousand yen Compensation for the Directors

Board of Directors Meetings, Executive Director and Supervisory Director

PreviousSupervisory
DirectorFee for property acquisition from related party or property transfer to related party
Acquisition or transfer price × 0.5％（usually 1.0%）is upper limit.

200,330 thousand yen Separation of Executive Director of HCM and President & CEO of HAM

Investment
corporation

related party

14th Fiscal Period(ended Jan. 2022)

16th Fiscal Period(ended Jan.2023)

15th Fiscal Period(ended Jul.2022)

Title

Name

Executive
Director

Yuji Fujise

300
thousandyen

1,800
thousandyen

300
thousandyen

1,800
thousandyen

Supervisory
Director

Sachihiko
Fujimoto

250
thousandyen

1,500
thousandyen

250
thousandyen

1,500
thousandyen

Supervisory
Kaori Sato
Director

―

―

―

―

（Note 1）Monthly
Total
Monthly
Total
Monthly
Total
Compensation Compensation Compensation Compensation Compensation Compensation

300
thousandyen(Note 2)250
thousandyen
250
thousandyen

2,100
thousandyen
1,500
thousandyen
750
thousandyen[Reference: Information on Former Supervisory Directors (Dec 2014 to Oct 2022)]
15 times/15 times(100%)(Note 1) The term of office is from the time of appointment to the end of November 2022.
(Note 2) The number of board meetings attended is based on the actual number of board meetings held from November
2021 to November 2022 during the tenure of each director.

PreviousSupervisory Yasuo Shida
Director

250
thousandyen

1,500
thousandyen

250
thousandyen

1,500
thousandyen

250
thousandyen

750
thousandyen(Note 1) Total compensation for the 16th fiscal period is an estimated amount.
(Note 2) Monthly compensation for executive directors has changed to 400 thousand yen since November 2022.

20

５．GovernanceInitiatives at HCM and HAM
Decision-Making Flow Concerning Acquisition of Assets Under Management

Investment Department

Proposal of acquisition plan by the Investment Department(Property due diligence by the Investment Department)

External Members of the Management Committee and Compliance Committee

The members of HAM’s Management Committee and Compliance Committee are comprisedof outside experts selected by the Board of Directors. Checks for conflicts of interest are set
in place and the fairness, objectivity and validity of the committees’ decision making are
ensured. The external members of the Management Committee and Compliance Committee
are as follows.

Compliance Committee
Name

When the candidate asset under management to be

When the candidate asset under management to beacquired is a healthcare facility or hospital real estate

acquired is a property other than healthcare facility
or hospital real estate
Healthcare Business Promotion Department or External Experts (if necessary)
Preparation of evaluation reports about the management status of a facility
and submission to the Investment Department

Compliance Officer (CO) [ Responsible for compliance ]Confirmation by Compliance Officer of existence or non-existence of issues on legal compliance and other compliance(hereinafter, "legal compliance issues")
When the transaction falls under the category of related-party transactio,or if the ComplianceOfficer judges that it is necessary to consider the lecompliance issues concernig the proposed income plantransaction or legal compliance issue.]
Deliberation and resolution of the existence or non-existence of legal compliance issues byProfession／ Title

voting
right

veto
right

Chairperson Hiroyuki Matsumoto

Male

HAM／ Compliance Officer◎○

External
memberEriko Matsuno

FemaleAttorney／ Tokyo J Law Offices Representative◎○

MemberSeiji Yoshioka

Male

HAM／ Representative Director○－

MemberKyosuke Umezu

Male

HAM／ Full-time Director○－

MemberAtsushi Tanno

Male

HAM／ Director and Chief Investment Officer○－

Resolution requirements: Resolution by approval of a majority of attending committee members; however,attendance and approval of the CO and external committee member are required.

Management Committee

Compliance Committee[Held prior to the Management Committee meeting when there is a related-party

GenderChairperson

Name

GenderSeij YoshiokaMalevoting
right

veto
right

HAM／ Representative Director

○

－

◎

○

Profession／ Title

External
memberToshiko Okamura

FemaleLicensed Real Estate Appraiser／ Toukatsu Real
Estate Appriasal Representative

MemberKyosuke Umezu

Male

HAM／ Full-time Director○－

MemberAtsushi Tanno

Male

HAM／ Director and Chief Investment Officer○－

MemberAtsumasa Furuya

Male

HAM／ Head of Financial Management Division○－

MemberKazushige Endo

Male

HAM／ Chief Asset Management Officer○－

MemberNoboru Kushige

Male

HAM／ Chief Healthcare Business Promotion Officer○－

etc., as delegated by the Board of Directors.]

MemberHiroyuki Matsumoto

Male

HAM／ Compliance Officer－○＊However, if the proposed acquisition plan falls under the category of interested-party transaction, which requires the

Resolution requirements: A resolution must be passed with at least three-fourths of the committee members inattendance and the approval of at least three-fourths of the committee members in attendance (however, theexternal committee member must approve).

the Compliance Committee.
Committee members: President & CEO, Full-time Director, Compliance Officer,
External member (External lawyer)
Resolution requirements: Resolution by approval of a majority of attending committee
members; however, attendance and approval of the CO andexternal committee member are required.
Management Committee[The final decision-making body for investment decisions, it deliberates and resolves on HCM's property acquisitions,approval of HCM's Board of Directors under the Investment Trusts Act, such prior approval will be obtained.
Deliberation and resolution at the Management Committee (The Compliance Officer may order the suspension ofdeliberation and resolution by the Management Committee when it is judged that there are issues such as legal violationin the procedures of proceedings and the content of deliberation.)
Committee members: President & CEO, Full-time Director, Head of each department, External member (External Licensed
Real Estate Appraiser), CO (without voting rights)
Resolution requirements: A resolution must be passed with at least three-fourths of the committee members in attendancand the approval of at least three-fourths of the committee members in attendance (however, texternal committee members must approve).
Board of Directors of HAM and HCM
Reportiong to the Board of Directors of HAM and HCM(However, if the proposed acquisition plan falls under the category of transaction with interested party, etc. that
requires approval of HCM's Board of Directors based on the Investment Trust Act, prior approval of the HCM's Board of
Directors shall be obtained.)

Ratio of Women and External (Outside) Members in Each Committee
Meeting structure

Ratio of Women

Ratio of External (Outside)
Members

Board of Directors of HCM

33.3%

66.7%

Board of Directors of HAM

0.0%

0.0%

Management Committee

12.5%

12.5%

Compliance Committee

20.0%

20.0%

(Note) The external (outside) ratio is the ratio of outside officers and committee members who are independent fromthe shareholders of the HAM. Independence is determined in accordance with the requirements for outside
directors as stipulated in Article 2, Paragraph 15 of the Companies Act.

21

５．GovernanceCompliance and Risk Management Systems
Compliance


HCM &
HAM

Compliance System

HAM, fully cognizant of the significance of the fact that the asset management it conductswith the assets of HCM constitutes the management of the funds of HCMʼs investors, in orderto ensure the development of an appropriate management structure, has set up theCompliance Office as a division responsible for matters pertaining to compliance of HAM, andhas appointed a Compliance Officer as an individual responsible for supervising matterspertaining to compliance, thereby ensuring the effectiveness of the function of internal
oversight of other departments. The appointment or the dismissal of the Compliance Officer
will be processed through the resolution of the Board of Directors.
The Compliance Officer, as the key person responsible for compliance at HAM, is charged
with establishing and maintaining the internal compliance structure of the company andraising the level of standards awareness within the company with regard to compliance withall applicable laws and rules. Also, the Compliance Officer will promote awareness ofcompliance of executives and employees and disseminate compliance through the planningand implementation of compliance trainings for executives and employees. To those ends,
the Compliance Officer continually monitors to ensure that all operations conducted for theasset management of HCM by HAM comply with all applicable laws and the Articles ofIncorporation of HCM, and exercises supervision over the overall internal complianceenvironment in daily operations.
In view of the importance of the duties of the Compliance Officer, only a person having
adequate investigative and supervisory capacity for ensuring compliance with all applicablelaws, regulations and rules will be appointed as the Compliance Officer.

 Initiatives to Prevent Corruption, Eliminate Anti-Social Forces, and Prevent Money
Laundering and Terrorist Funding
HAM has established a system to strictly prohibit and prevent corruption, such as bribery,money laundering, embezzlement, and other violations of the law. This includes theestablishment of the Rules on Prevention of Bribery, Reception of Gifts and Rules on
Handling of Verifications on Transactions.
As a basic policy for eliminating anti-social forces, HAM stipulates that “it will sever any ties
whatsoever with anti-social forces, reject unjust demands from them, engage in nobackroom deals with and provide no funds to them, and, if necessary, take legal action
against them and adopt a company-wide response to anti-social forces while collaboratingwith specialized external organizations.”
Based on this basic policy, HAM severs all ties with anti-social forces, ensures appropriate
management of HAM, and prevents significant harm to stakeholders, including executives
and employees, and shareholders, and with the aim of fulfilling HAMʼs social responsibilities,
it has established Regulations for Eliminating Anti-Social Forces and Manual for Eliminating
Anti-Social Forces, etc., which stipulate policies and specific procedures for handling theirelimination.
Furthermore, it has established a department for handling anti-social forces and asupervisory officer, and through internal compliance training, it aims to comprehensively
inform all executives and employees about the policies for eliminating anti-social forces andthe methods of handling them.

 Formulation and Execution of the Compliance Manual Establishment of Internal Reporting System

In order to ensure thorough compliance with laws, etc. (referring to laws, ordinances,
regulations and other orders HAM must observe in executing operations, the regulations of
the Investment Trusts Association, Japan (the “Investment Trusts Association”), theregulations of the financial instruments exchange to which HCM is listed, the Articles ofIncorporation of HCM, the Articles of Incorporation and in-house rules of HAM and theagreements concluded by HAM based on such (including asset management entrustment
agreements), etc.), HAM has established the Compliance Rules and the Compliance Manual,
has formulated the Compliance Program, which is a concrete practice plan for realizing
compliance with laws, etc., and will strive to implement compliance with laws, etc. inaccordance with the program.

HAM has established a system for consultation and appropriate handling of reports related toviolations and other questionable acts or facts in relation to laws and other societal
standards and the Compliance Manual (compliance-related information). Both internal andexternal points of contact are in place.
 Compliance workshops
In order to foster and improve self-directed compliance awareness, we hold monthly
compliance workshops and rigorously implement customer-oriented business operations(fiduciary duty) for all executives and employees.

22５．GovernanceCompliance and Risk Management Systems
Risk Management





HCM &
HAM

Risk Management

With regard to the various risks concerning investment management, HCM observes therules stipulated in the Investment Trust Act and other related laws and regulations. Also,
HAM establishes appropriate company regulations for such risks, sets forth necessaryorganizational structures and educates executives and employees in order to enhance theirmindfulness of compliance, among other measures. The specific initiatives are as follows.
A. HCM
HCM is managed by the Board of Directors comprised of one executive director and two
supervisory directors. The Board of Directors convenes at least once every three months asnecessary to pass resolutions pertaining to matters stipulated by law and HCMʼs Board of
Directorsʼ Rules and report on the status of execution of operations by HAM and executive
director of HCM. This system enables supervisory directors that are independent from HAM
and interested parties, etc. to supervise the status of execution of operations. Also, thesupervisory directors may request reports concerning the operations and financial status of
HCM from HAM, the asset custody company, etc. and conduct necessary investigations.
B. HAM
In order to appropriately manage various risks, HAM has formulated the Risk Management
Rules as company regulations, stipulating that significant risks must be reported to the Boardof Directors without delay. Additionally, HAM has formulated the Related Party Transaction
Rules in order to prevent harm to the interests of HCM, thereby establishing strict rules
against conflicts of interest. Regarding compliance, HAM has established the Compliance
Regulations and the Compliance Manual to promote thorough legal compliance, hasformulated the Compliance Program, which is a concrete practice plan for realizing
compliance with laws, etc., and will strive to implement compliance with laws, etc. inaccordance with the program.
Furthermore, HAM has formulated the Internal Audit Rules to secure adequacy of operations
and promote efficient management, thereby establishing a self-monitoring system.
 Internal Audits
A. Organization and Details of Internal Audits
The internal audits of HAM are conducted by the Internal Audit Office and Internal Audit
Office Manager. Moreover, when the Compliance Officer also occupies the post of Internal
Audit Office Manager, the Head of Financial & Administration Department shall haveauthority over and owe duty for internal audits concerning the operations of the Compliance
Officer and Compliance Office.
(The person appointed to the post of Head of Financial & Administration Department shall be
one with sufficient knowledge and experience for proper execution of internal audits of theCompliance Officer and Compliance Office.)
The internal audits will target all organizations and divisions and their operations.

The Internal Audit Division formulates an internal audit plan upon understanding the conditionsof internal management, risk management, etc. of audited divisions. In principle, internal audits
shall be conducted based on the internal audit plan at least once a year (periodic audits).
However, audits will also be conducted by special order of the Representative Director (special
audits). Special audits shall be prescribed by the Representative Director when it is recognized
to be particularly necessary in cases where, during an internal audit planʼs target period, facts
contrary to the conditions of internal management, risk management, etc. of audited divisions
grasped as of the formulation of the internal audit plan come to light.
When internal audits are being conducted, each division must present and explain documents,
registers, etc. to the Internal Audit Office and Internal Audit Office Manager as requested andcooperate for the smooth implementation of the audit.
B. Remedial Measures Based on Results of Internal Audits
The Internal Audit Office and Internal Audit Office Manager shall notify the audited divisionsof the audit results. The Representative Director may issue recommendations for
improvement to an audited division in light of the audit results. The audited division shallthen prepare an improvement plan and, having effected the improvement, report to theRepresentative Director and Internal Audit Office Manager with regard to the status of
improvement. The Representative Director and Internal Audit Office Manager shall thendeliberate the content of the report, thereby confirming the effective functioning of theinternal audit.


BCP Measures

In preparation for emergency situations that may occur in the course of management of
HCMʼs assets due primarily to large-scale earthquakes, fires, typhoons, storms, flooding,abnormal weather and other natural disasters, other man-made disasters such as terrorist
attacks and cyberattacks, infectious diseases such as novel influenza viruses ordamage/disruption of lifelines, HAM has established a Crisis Management Manual for apolicy of measures of preparation, ensuring of chain-of-command, prevention of spread ofdamage and continuation of important operations for the purpose of promptly ensuring thesafety of executives and employees, reducing risk and damage, preventing an increase ofloss for unitholders and stakeholders, ensuring continuation of important operations andearly recovery, etc.
Also, HAMʼs office, general warehouse, etc. are equipped with three daysʼ worth of
emergencyfood and water for executives and employees and other stockpiles andequipment.
Confirmation of Safety

In order to quickly grasp the situation and safety of executives and employees in a disaster,
HAM has introduced a system of confirming safety using the internet and emails as part ofthe companyʼs crisis management strategy. Safety confirmation trainings are conducted atleast once a year. The participation rate in fiscal 2022 was 100%.

23

６．Social Finance
SDGs Social Finance Framework

JCR Social Finance Evaluation

JCR Social Finance Framework Evaluation The highest evaluation
Social １(F)SocialbondSocialloanDate of issue：January 30, 2020
Amount of issue︓2 billion yen

Period︓10 years
Interest rate︓0.78%

Social loan balance：32.15 billion yen(about 86.5% of the loan balance)(As of October 31, 2022)※ New loans after January 2019 are all social loans.

What Is Social Finance?

Social Finance refers to finance with issuance of bonds and loans “that raise funds for new andexisting projects with positive social outcomes." Specifically, it is a financing approach where (i)The use of funds is limited to projects with a high degree of contribution to society, (ii) The funds
are reliably tracked and managed, and (iii) Transparency is secured through reporting after thefund-raising.
ESG financing is showing signs of spreading to various financing tools rather than just bonds inrecent years. There is already encouragement being explicitly made for investment in various
financial instruments, such as the “Green Loan Principles” published by the Loan Market Association
for green projects.
In the “Recommendation from the High Level Meeting on ESG Finance - Toward becoming a big
power in ESG finance-” announced by the Ministry of the Environment on July 27, 2018, promotionof ESG financing that have ESG and SDG contributions as the use of proceeds has been
incorporated as follows:“We understand that a strategic shift toward a decarbonized, sustainable society is exactly thesource of Japanʼs competitiveness and “new growth,” as both the Paris Agreement and Sustainable
Development Goals (SDGs) pursue such a society. Against this backdrop, we have confirmed that it
is essential to develop ESG investments, which are being accelerated ahead in direct finance, into
those with a larger social impact, and to realize ESG financing in indirect finance as well throughcollaborations between regional financial institutions and local governments, etc. with financial
institutionsʼ responses to the global trend in mind… Given Japanʼs financial structure centered onindirect finance, encouraging considerations to ESG in loan will also be a key to expansion ofsustainable and inclusive ESG finance.”Establishment of SDGs Social Finance Framework

HAM established the SDGs Social Finance Framework limiting the use of funds to investments witha high degree of social contribution when HCM raises funds through borrowings or issuance ofbonds as social finance as well as defining the confirmation and management system of the statusof allocation of procured funds and reporting system of the effect of social contribution, etc.
The framework limits the use of funds procured from social financing to new investments inhealthcare facilities and refinancing. In addition, it also defines the criteria and process of project
selection, fund management method, status of allocation of funds and reporting on social outcome.

What Is JCR Social Finance Evaluation?

JCR Social Finance Evaluation is an evaluation performed by Japan Credit Rating Agency, Ltd.
(hereinafter, “JCR”) by confirming that the use of funds are in alignment with the Social Financecomponents of the principles published by the International Capital Market Association (ICMA)and consistent with the SDGs. In the confirmation and evaluation, the "Social Bond Principles"and "Mapping of SDGs and Social Project Categories" published by ICMA are used as referenceindicators in the evaluation, and such include the "Social Finance Framework Evaluation," anevaluation for the framework of fund procurement, “Social Loan Evaluation," an evaluation forborrowings, and “Social Bond Evaluation," an evaluation for bonds

Acquisition of First Social Finance Evaluation by a J-REIT

HCM was the first J-REIT to acquire social finance evaluation by JCR for the social financeframework and the social loans through which funds were procured in February 2019 (total of
11.75 billion yen). The impact of HCMʼs businesses on the society, the management method of
the procured funds, the information disclosure system, etc. were highly evaluated, and HCM
received the highest evaluation for each item. For details, please refer to the evaluation reporton JCRʼs website.
Evaluation item
Social Finance Framework Evaluation
Social Loan Evaluation

ResultSocial1 (F)Social1

JCR website
https://www.jcr.co.jp/en/First issuance of social bond of HCM

When the refinancing in January 2020 , HCM issued the Social Bond for the first time with an
aim to expand fund procurement methods by the expansion of its investor base which isproactively conducting ESG investment, as well as to improve unitholder value over the medium
to long term by contribution to the realization of a sustainable society set in the SDGs.
Actions

Targets of
SDGs

Expected effects of social contribution
・ Elimination of the shortage of housing for theelderly against the elderly population
・ Promotion of earthquake resistance at hospitals
・ Promotion of the shift of hospital functions torealize a sustainable society

Continuous investment
in healthcare facilities
and stable asset
management

・ Promotion of social advancement of women who
were forced to leave their jobs to be engaged innursing care by promoting the supply of nursing
care facilities
・ Reduction of work burden of nursing care staff
through ICT system investments in nursing carefacilities

24

６．Social Finance[Borrowings for Refinancing]

Status of Allocation of Social Loan and Social Bond

LenderStatus of Use and Procurement of Funds（November 1, 2021 - October 31, 2022）
Use of funds

Fund procurement

Acquisition of healthcare
facilities

6 billion yen

Social loan

Refinancing

7 billion yen

Social bond－Own funds－

Expenses, etc.(Note)Total－
13 billion yen

Total

13 billion yen

List of Social Loans and Social Bond（November 1, 2021 - October 31, 2022）

HCM procured 7.0 billion yen on January 31, 2022, 5.5 billion yen on March 30, 2022, and 0.5
billion yen on September 30, 2022, and allocated the entire amount as funds for financing
borrowings associated with the acquisition of trust beneficiary rights for healthcare facilities andrefinancing such borrowings.
[List of Social Loans]
LenderBorrowingamountInterest rate

Loan syndicate with
Sumitomo Mitsui
Banking Corporation
as an arranger

1.1 billion yen

Fixed interest
rate

5.9 billion yen

3-monthTIBOR+0.45％

SMBC

2 billion yen

Loan syndicate with
Sumitomo Mitsui
Banking Corporation
as an arranger

0.7 billion yen

SMBC

0.5 billion yen

2.8 billion yen

Drawdown date

January 31,
2022

Repayment
date

Repayment
methodUnsecured
Unguaranteed

January 31,
2023

Funds for acquisition of healthcare facilities(including trust beneficiary rights)

46.2%

Funds for refinancing

53.8%

3 billion yen

March 21, 2017

2 billion yen

February 1, 2019

January 31, 2022

Initial use of funds
・Acquisition funds for Kobe Gakuentoshi Building, GreenLife Moriguchi, Hapine Kobe Uozaki Nibankan, Granda TsurumaYamato, Smiling Home Medice Adachi and AIKOEN ICHIBANKAN Building.
・Acquisition funds for AQUAMARINE Nishinomiyahama, ASHEIM Hikarigaoka, ASHEIM Bunkyohakusan, SOMPO CARE La vie
Re Machidaonoji, SOMPO CARE La vie Re Azamino, SAWAYAKA Tachibanakan, SAWAYAKA Mekarikan, SAWAYAKA
Tagawakan, GOOD TIME HOME Fudo-mae, SOMPO CARE Sompo no ie Awajiekimae, SOMPO CARE Sompo no ie
Kobekamisawa, Bonsejour Yotsugi, Medical Home Bonsejour Itami.
・SOMPO CARE La vie Re Hama-Kawasaki, Hanakotoba Shin-Yokohama, Hanakotoba Shin-Yokohama II, Hanakotoba
Odawara, Verde Minowa, Verde Hotaka, Sunny Life Kita-Shinagawa, SHIP Senri Building.

Social loans accounted for 32.15 billion yen (82.1%) and social bonds for 2.0 billion yen (5.1%) of
total interest-bearing debt as of the end of October 2022, for a total of 34.15 billion yen (87.2%)
procured through social finance.

January 31,
2027

Allocation ratio

March 3, 2017

Status of Social Finance（as of the end of October,2022）

Non-Social Loans
12.8%
Social Bond
5.1%

[Status of Use and Allocation of Funds]
Use of Funds

2 billion yen

Refinancing date

Security

January 31,
2025

Lump-sum
3-monthMarch 30, 2022 March 30, 2023 repayment on
TIBOR+0.25％
principal
3-monthJanuary 31,
repayment
TIBOR+0.35％
2026
date
March 30, 2022
3-monthJanuary 31,
TIBOR+0.55％
2028
3-monthSeptember 30,
TIBOR+0.25％
2022

Drawdown date13 billion yen(Note) Expenses include research expenses, investment unit issuance expenses, loan fees, etc. associated withproperty acquisition.



Loan syndicate with
Sumitomo Mitsui
Banking Corporation
as an arranger

Balance

Unallocated amount

Total
Interest bearing debt
39.15 billion yen

NoneSocial Loans
82.1%

25

７．Outcome Indicators
Change in the Acquisition Amount and Number of Healthcare Facilities in
the J-REIT Market

Ratio of Housing for the Elderly to the Elderly Population

Status of Supply of Healthcare Facilities
Although the supply of facilities and housing for the elderly is increasing every year in
response to the growing demand for medical and nursing care service, the supply rate ofpaid nursing homes against the elderly population was 1.72% in 2020 and that of serviced
housing for the elderly was only 0.72% in 2020.

As of the end of October 2022, the total acquisition amount of healthcare facilities was 318,746
million yen and the cumulative number of properties was 174 in the J-REIT market. Of these,
the cumulative acquisition amount for HCM was 80,007 million yen (25.1%) and the cumulative
number of properties for HCM was 48 (27.6%).
(Unit: million yen, property)
Acquisition amount of healthcare facilities
Entire J-REIT market[Supply Rate of Facilities and Housing for the Elderly Against the Elderly Population(Aged 65 Years or Older)]
2.0%

Paid nursing homeServiced housing for the elderly

1.72%

1.8%
1.6%

1.40%

1.4%
1.2%

1.02%

1.10%

1.19%

1.48%

1.55%

1.61%

1.25%

1.0%
0.8%
0.6%

0.46%

0.54%

0.63% 0.63%

0.66%

0.73%

0.42%

0.50%

0.57%

0.61%

0.64%

0.67%

0.70% 0.72%

0.29%

0.4%
0.2%

0.01%

0.0%
2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

(Source) Prepared by the Asset Management Company based on the “Overview of Survey on Social Welfare Facilities,etc.” of Ministry of Health, Labour and Welfare, “Information Provision System of Serviced housing for theelderly” on the website of the Senior Housing Association, and “Population Estimation” of the Ministry ofInternal Affairs and Communications.

Number of healthcare facilities

HCM

Entire J-REIT market

HCM

Acquisition
Price

CumulativeacquisitionPrice

Acquisition
Price

Cumulativeacquisition
Price

Number ofproperties
Acquired

Cumulative
number of
Properties

Number ofproperties
Acquired

Cumulative
number of
Properties(Note1)

2001

0

0

0

0

0

0

0

0

2002

0

0

0

0

0

0

0

0

2003

0

0

0

0

0

0

0

0

2004

0

0

0

0

0

0

0

0

2005

0

0

0

0

0

0

0

0

2006

2,865

2,865

0

0

4

4

0

0

2007

5,600

8,465

0

0

4

8

0

0

2008

0

8,465

0

0

0

8

0

0

2009

0

8,465

0

0

0

8

0

0

2010

0

8,465

0

0

0

8

0

0

2011

0

8,465

0

0

0

8

0

0

2012

2,510

10,975

0

0

2

10

0

0

2013

1,980

12,955

0

0

2

12

0

0

2014

28,782

41,737

0

0

20

32

0

0

2015

63,411

105,148

23,683

23,683

40

72

16

16

2016

6,278

111,426

1,338

25,021

5

77

2

18

2017

18,417

129,843

15,48340,504

10

87

7

25

2018

21,675

151,518

1,686

42,190

11

98

2

27

2019

38,900190,418

22,69164,881

13

111

8

35

2020

72,820263,238

1,456

66,33733

144

1（Note2）

36

2021

27,237

290,475

720

67,057

12

156

1

37

January 2022

0

290,475

067,057

0

156

0

37

February 2022

6,248

296,723

6,248

73,305

6

162

6

43

March 2022

9,881

306,604

5,194

78,499

7

169

4

47

April 2022

2,340

308,944

078,499

1

170

0

47

May 2022

0308,944

078,499

0

170

0

47

June2022

0308,944

078,499

0

170

0

47

July 2022

0308,944

078,499

0

170

0

47

August 2022

308,944

078,499

0

170

0

47

September
2022

0
3,522

312,466

1,508

80,007

3

173

1

48

October 2022

6,280

318,746080,007

1

174

0

48

(Source) Prepared by the Asset Management Company based on ARES J-REIT Databook (October 2022)(Note1) The accumulated number of properties acquired by HCM is described, therefore, disposed properties aren’t included in the calculation.
(Note2) Verde Hotaka (land) is not included in the number of properties acquired as it is based on the properties already owned.

26

８．Output Indicators（During the Reporting Period）
Properties Acquisition during the Reporting Period(November 1, 2021 - October 31, 2022)

Properties Acquisition and Disposition during the Reporting Period(November 1, 2021 - October 31, 2022)
Acquisition dateFebruary 1,
2022

March 30, 2022

September 30,
2022

Property Name

Acquisition price（million yen ）Property type

SOMPO CARE La vie Re
Kobeikawadani

Paid nursing home

1,288

SOMPO CARE Sompo no ie Sayama

Paid nursing home

600

Royal Kawaguchi

Paid nursing home

1,260

NOAH GARDEN LEGEND

Paid nursing home

859

Name

SOMPO CARE La vie Re
Kobeikawadani

Name

NOAH GARDEN L Grace

Paid nursing home622

Location

Kobe-shi, Hyogo

SOMPO CARE Sompo noie Sayama

Location

Sakai-shi, Osaka

NOAH GARDEN CASA RICH

Serviced housing for theelderly

1,619

Operator

SOMPO Care

Operator

SOMPO Care

NOAH GARDEN Season Bell

Paid nursing home

1,350

Appraisal value

1,300 million yen

Appraisal value

647 million yen

Acquisition price

1,288 million yen

Acquisition price

600 million yen

Paid nursing home

2,000

Appraisal NOI yield

4.9%

Appraisal NOI yield 5.4%

Number ofrooms/Resident
capacity

80 rooms, 80 people

Heartland Kawaguchi Meiseien
Granda Minamiurawa

Paid nursing home

1,022

Madoka Minamiurawa

Paid nursing home822

Nichii Home Inage

Paid nursing home

1,508

Total


Paid nursing home

Paid nursing home

HCM newly acquired six properties (total acquisition price:6,248 million yen) in
February 2022, four properties (total acquisition price:5,194 million yen) in March
2022, one property (acquisition price:1,508 million yen) in September 2022.

Number ofrooms/Resident
capacity

Paid nursing home

50 rooms,50 people

Paid nursing home

12,950

HCM disposed one property (disposition price:1,450 million yen) in September 2022.
Disposition price（million yen ）Disposition date

Property Name

Property type

September 27,
2022

Medical Rehabilitation Home Bonsejour Komaki

Paid nursing home

[Change in Portfolio Status]
End of fiscal period ended July 2021
(13th FP)
37
Number of properties
Total acquisition price67.0 billion yen

Total appraisal value
Average appraisal NOI
yield
Hospital real estate

5.6％

Number of operators
Occupancy Rate
Average remaining
lease term

72.5 billion yen

2
13
100％
12.7 years

1,450

End of October 2022
Number of properties
Total acquisition priceTotal appraisal value
Average appraisal NOI
yield
Hospital real estate
Number of operators
Occupancy Rate
Average remaining
lease term

47
78.7 billion yen
86.5 billion yen

Comparison withEnd of 13th FP
+10

Name

Royal Kawaguchi

Name

NOAH GARDEN LEGEND+11.6 billion yen

Location

Kawaguchi-shi, Saitama

Location

Sapporo-shi, Hokkaido＋14 billion yen

Operator

SENIOR LIFE SUPPORTOperator

NOAH KONZER

5.5％

-0.1％

Appraisal value

1,310 million yen

Appraisal value

910 million yen

2±0

Acquisition price

1,260 million yen

Acquisition price859 million yen

16+3

Appraisal NOI yield 4.9%

99.9％

-0.1％

11.2 years-1.5 years

Number ofrooms/Resident
capacity

56 rooms, 56 people

Appraisal NOI yield 5.6%
Number ofrooms/Resident
capacity

72 rooms, 72 people27

８．Output Indicators（During the Reporting Period）
Properties Acquisition during the Reporting Period(November 1, 2021 - October 31, 2022)
Paid nursing home

Name

NOAH GARDEN L Grace

Name

Location

Sapporo-shi, Hokkaido

NOAH GARDEN CASA
RICH

Location

Operator

NOAH KONZER

Appraisal value
Acquisition priceGranda Minamiurawa

Name

Madoka Minamiurawa

Sapporo-shi, Hokkaido

Location

Kawaguchi-shi, Saitama

Location

Kawaguchi-shi, Saitama

Operator

NOAH KONZER

Operator

Benesse Style Care

Operator

Benesse Style Care

660 million yen

Appraisal value

1,730 million yen

Appraisal value

1,100 million yen

Appraisal value

883 million yen

622 million yen

Acquisition price

1,619 million yen

Acquisition price

1,022 million yen

Acquisition price

822 million yen

51 rooms, 51 people

Appraisal NOI yield 5.6%
Number ofrooms/Resident
capacity

Paid nursing home

115 rooms, 115 people

Appraisal NOI yield 4.8%

Appraisal NOI yield 4.8%

Number ofrooms/Resident
capacity

Number ofrooms/Resident
capacity

Paid nursing home

58 rooms, 60 people

NOAH GARDEN Season
Bell

Name

Name

Nichii Home Inage

Location

Sapporo-shi, Hokkaido

Heartland Kawaguchi
Meiseien

Location

Kawaguchi-shi, Saitama

Location

Chiba-shi, Chiba

Operator

NOAH KONZER

Operator

MEISHOOperator

Nichii Carepalace

Appraisal value

1,520 million yen

Appraisal value

2,180 million yen

Acquisition price1,350 million yen

Appraisal value

1,660 million yen

Acquisition price

2,000 million yen

Acquisition price

1,508 million yen

Appraisal NOI yield

5.5 %Number ofrooms/Resident
capacity

85 rooms, 95 people

Appraisal NOI yield 5.8%
136 rooms, 136 people

Appraisal NOI yield 5.0%
Number ofrooms/Resident
capacity

97 rooms, 100 people

54 rooms, 54 people

Paid nursing home

Name

Number ofrooms/Resident
capacity

Paid nursing home

Name

Appraisal NOI yield 5.6%
Number ofrooms/Resident
capacity

Paid nursing homeServiced housing for the elderly28

８．Output Indicators
1

Portfolio Map

2

Bonsejour Hino

4

Bonsejour Musashi-shinjo

7

3
9
20

10

9

21

7
33

8

37 38 3

8

10

15

11

31
14

2
4

27 26 25
23

22
17
34

2 19 1

16

35

1
1 18

36
30

35

11

29

4142
40
36

13
12

37

5

24

Paid nursing
home

43

28
32

Serviced housing
for the elderly
Medical servicerelated facilities,
etc.

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

SOMPO CARE Sompo no ie
SayamaRoyal Kawaguchi

NOAH GARDEN LEGEND

38

NOAH GARDEN L Grace

39

NOAH GARDEN Season Bell40

Heartland Kawaguchi Meiseien

41

Granda Minamiurawa

42

Madoka Minamiurawa

43

Nichii Home inage

1

SOMPO CARE Sompo no ie S
Awajiekimae

2

SOMPO CARE Sompo no ie S
Kobekamisawa

3

NOAH GARDEN CASA RICH

1

Niigata Rehabilitation Hospital

1

SHIP Senri Building

Paid nursing
home

Medical Rehabilitation Home
Bonsejour Hadanoshibusawa
ASHEIM Hikarigaoka

ASHEIM Bunkyohakusan
SOMPO CARE La vie Re
Machidaonoji
SOMPO CARE La vie Re
AzaminoSAWAYAKA Tachibanakan

12

SAWAYAKA Mekarikan

13

SAWAYAKA Tagawakan

14

GOOD TIME HOME Fudo-mae

15Bonsejour Yotsugi

16
1

Bonsejour Chitose-funabashi

3
5

39

AQUAMARINE
Nishinomiyahama

17

Medical Home Bonsejour
Itami
Kobe Gakuentoshi Building(Hapine Kobe Gakuentoshi)

18

GreenLife Moriguchi

19

Hapine Kobe Uozaki Nibankan

20Granda Tsuruma-Yamato

21
22
23
24
25
26

Smiling Home Medice Adachi

Aikoen Ichibankan Building(Aikoen Ichibankan)
Hanakotoba Minami
Hanakotoba Miura

SOMPO CARE La vie Re
Hama-Kawasaki

Hanakotoba Shin-Yokohama

27

Hanakotoba Shin-Yokohama II

28

Hanakotoba Odawara

29

Verde Minowa

30

Verde Hotaka

31

Sunny Life Kita-Shinagawa

32

Sunny Life Kamakura

33

Nichii Home Nishikokubunji

34

SOMPO CARE La vie Re
Kobe-ikawadani(Note) This portfolio map is described based on the data announced as of the end of October 2022.

29

８．Output Indicators
Summary of Buildings and Their Leasing Status (as of the end of 15th FP)
Property
number

Property namePaid nursing
home‐1

AQUAMARINE
Nishinomiyahama

Paid nursing
home‐2

Bonsejour Chitose-funabashi

Paid nursing
home‐3
Paid nursing
home‐4Structure/ No. offloors(Note 1)

Construction
completion(Note 2)

leasablearea (㎡)(Note 3)

RC/5F

May 18, 2007

5,274.54

No. ofOperation
Leasedtenants
al ratearea (㎡) (companies) (%)(Note 4)(Note 6)(Note 5)5,274.542

100.0

RC/B1・6F

Mar. 8, 1988

2,342.17

2,342.171

100.0

Bonsejour Hino

RC/3F

May 2, 1990

1,984.17

1,984.171

100.0

Bonsejour Musashi-shinjo

RC/4F

Feb. 21, 1985

1,710.43

1,710.431

100.0

Medical Rehabilitation Home
Bonsejour Hadanoshibusawa
Paid nursing Medical Rehabilitation
home‐6
Home Bonsejour Komaki
Paid nursing
home‐5

RC/5F

Jul. 17, 1991

3,435.79

3,435.79

1

100.0

SRC・RC・S/10F

Mar. 13, 1991

8,858.49

8,858.491

100.0

Property
number

Property name

S/3F

Sep. 20, 2018

2,135.54

2,135.54

1

100.0

Sunny Life Kamakura

S/5F

Sep. 19, 2014

3,817.91

3,817.91

1

100.0

Paid nursing
home‐33

Nichii Home Nishikokubunji

S/3F

Sep. 29, 1990

1,559.99

1,559.99

1

100.0

RC・S/4F

Apr. 24, 2009

3,824.54

3,824.541

100.0

Paid nursing
home‐34
Paid nursing
home‐35

SOMPO CARE La vie Re
Kobe-ikawadani
SOMPO CARE
Sompo no ie Sayama

S/3F

Aug. 15, 2005

1,997.87

1,997.87

1

100.0

Paid nursing
home‐36

Royal Kawaguchi

RC/3F

Oct. 1, 2008

3,484.02

3,484.021

100.0

Paid nursing
home‐37

NOAH GARDEN LEGEND

RC/4F

Oct. 10, 2015

2,736.89

2,736.89

1

100.0

Paid nursing
home‐38

NOAH GARDEN L Grace

RC/4F

Oct. 27, 2017

2,075.25

2,075.25

1

100.0

Paid nursing
home‐39NOAH GARDEN Season Bell

RC/5F

Dec. 10, 2019

4,602.26

4,602.26

1

100.0

Paid nursing
home‐40

Heartland Kawaguchi Meiseien

RC/6F

Jan. 30, 2006

3,885.90

3,885.90

1

100.0

Paid nursing
home‐41

Granda Minamiurawa

S/3F

Jul. 15, 2011

2,373.25

2.373.25

1

100.0

S/3F

Apr. 11, 2005

1,918.98

1,918.98

1

100.0

RC/12F

Jun. 12, 2009

5,745.15

5,745.15

1

100.0

S/9F

Jun. 11, 2009

4,058.35

4,058.35

1

100.0

RC/3F

Mar. 6, 2006

3,628.60

3,628.60

1

100.0

ASHEIM Bunkyohakusan

RC/8F

Feb. 27, 2007

2,507.25

2,507.25

2

100.0

RC/B1・6F

Oct. 29, 2007

7,720.17

7,720.171

100.0

RC/B1・5F

Mar. 1, 2004

5,789.25

5,789.25

1

100.0

RC/B1・6F

Oct. 31, 2005

5,652.94

5,652.94

1

100.0

Paid nursing
home‐42

Madoka Minamiurawa

Servicedhousing forthe elderly ‐1Servicedhousing forthe elderly ‐2Servicedhousing forthe elderly ‐3Medicalservice‐related facilities‐1
Complex of
paid nursing
homes,medic
al service
relatedfacilities,etc.‐
1

SOMPO CARE Sompo no ie S
Awajiekimae
SOMPO CARE Sompo no ie S
Kobekamisawa

SAWAYAKA Tachibanakan

Paid nursing
home‐12SAWAYAKA Mekarikan

RC/4F

Nov. 15, 2005

4,720.46

4,720.46

1

100.0

Paid nursing
home‐13SAWAYAKA Tagawakan

RC/3FJan. 20, 2006

2,366.20

2,366.20

1

100.0

Paid nursing
home‐14

GOOD TIME HOME Fudo-mae

RC/B1・5F

Mar. 18, 1992

3,400.20

3,400.20

1

100.0

Paid nursing
home‐15

Bonsejour Yotsugi

RC/5F

Mar. 28, 1989

1,962.89

1,962.89

1

100.0

Paid nursing
home‐16

Medical Home Bonsejour Itami

Mar. 3, 1989

2,129.87

2,129.87

1

100.0

Paid nursing
home‐17

Kobe Gakuentoshi Building(Hapine Kobe Gakuentoshi)

SRC/11F(exclusively‐
owned portion)
RC/B1・9F

Jan. 7, 2009

12,636.48 12,636.48

1

100.0

Paid nursing
home‐18

GreenLife Moriguchi

S・RC/9F

Sep. 6, 2006

8,356.85

8,356.851

100.0

Paid nursing
home‐19

Hapine Kobe Uozaki Nibankan

S/B1・4F

Mar. 31, 2010

1,772.89

1,772.89

1

100.0

Paid nursing
home‐20

Granda Tsuruma-Yamato

RC・S/5F

Mar. 6, 1998

3,427.08

3,427.08

1

100.0

Paid nursing
home‐21

Smiling Home Medice Adachi

RC/4F

Nov. 16, 2005

3,870.98

3,870.982

100.0

Paid nursing
home‐22

AIKOEN ICHIBANKAN Building

S/5F

Feb. 4, 2010

4,311.20

4,125.973

95.7

Paid nursing
home‐23

Hanakotoba Minami

RC/7F

Feb. 24, 2010

1,710.68

1,710.681

100.0

Paid nursing
home‐24

Hanakotoba Miura

RC/4F

Jun. 27, 2007

1,959.64

1,959.641

100.0

Paid nursing
home‐25

SOMPO CARE La vie Re
Hama-Kawasaki

RC/4F(exclusively-owned
portion)Mar. 8, 2007

4,060.21

4,060.215

100.0

Paid nursing
home‐26

Hanakotoba Shin-Yokohama

RC/9F

Mar. 15, 2004

5,230.23

5,230.23

1

100.0

Paid nursing
home‐27

Hanakotoba Shin-Yokohama II

RC/B1・7F

Apr. 25, 2007

1,837.29

1,837.29

1

100.0

Paid nursing
home‐28

Hanakotoba Odawara

RC/4F

Sep. 16, 2009

2,203.42

2,203.421

100.0

Paid nursing
home‐29

Verde Minowa

1

100.0

Verde Hotaka①Nov. 20, 2003
②Feb. 28, 1974
①Sep. 29, 1982
②Jul. 1, 1989

11,098.17 11,098.17

Paid nursing
home‐30①S/5F②S・RC/8F①S・SRC/5F②S/2F

6,352.861

100.0

6,352.86

No. ofOperational
tenants
rate (%)(companies)(Note 6)(Note 5)Sunny Life Kita-Shinagawa

ASHEIM Hikarigaoka

Paid nursing
home‐11leasable area Leased(㎡)
area (㎡)(Note 3)(Note 4)

Paid nursing
home‐32

Paid nursing
home‐8

SOMPO CARE La vie Re
Machidaonoji
Paid nursing SOMPO CARE La vie Re
home‐10
AzaminoConstruction
completion(Note 2)

Paid nursing
home‐31

Paid nursing
home‐7

Paid nursing
home‐9Structure/ No. offloors(Note 1)NOAH GARDEN CASA RICH

RC/5F

Mar. 27, 2015

4,986.98

4,986.98

1

100.0

Niigata Rehabilitation Hospital①RC/3F②S/5F①Apr. 20, 1990
②Feb. 28, 2001

13,476.55 13,476.55

1

100.0

SHIP Senri Building

RC/B1・11F

Sep. 5, 2008

24,813.85 24,813.85

1

100.0

Total

―

―

219,804.68 219,619.45

56

99.9

(Note 1) “Structure/No. of floors” indicates information provided in the real estate registry of the building of each
owned asset. “S” refers to steel structure, “RC” refers to reinforced concrete structure, “SRC” refers tosteel‐reinforced concrete structure, “B” refers to basement floor and “F” refers to floors above ground.
(Note 2) “Construction completion” indicates the date of new construction provided in the real estate registry of thebuilding of each owned asset.
(Note 3) “Leasable area” indicates figures based on the lease agreement of each building.
(Note 4) “Leased area” indicatesthe areas out of the leasable area for which actual lease agreements have beenconcluded and are leased.
(Note 5) “No. of tenants” indicates the number of tenants of each building based on the lease agreements. For thesection 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 propertiessubject topass‐through master lease agreement where rentsfrom end tenants are received intact, in principle, the total
number of end tenantsis indicated as the number of tenants. However, for the sections that are not subject tothe 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 indicated accordingly.
(Note 6) ”Occupancy rate” indicates the leased area as a percentage of the leasable area of each owned asset as of July
31, 2022, and is rounded to one decimal place.

30

８．Output Indicators
Overview of Facilities and Housing for the Elderly (as of the end of 15th FP)
Property
number
Paid nursing
home‐1
Paid nursing
home‐2
Paid nursing
home‐3
Paid nursing
home‐4
Paid nursing
home‐5

Paid nursing
home‐6
Paid nursing
home‐7
Paid nursing
home‐8Paid nursing
home‐9Paid nursing
home‐10
Paid nursing
home‐11
Paid nursing
home‐12Paid nursing
home‐13
Paid nursing
home‐14
Paid nursing
home‐15
Paid nursing
home‐16

Paid nursing
home‐17

Paid nursing
home‐18
Paid nursing
home‐19
Paid nursing
home‐20
Paid nursing
home‐21
Paid nursing
home‐22
Paid nursing
home‐23
Paid nursing
home‐24
Paid nursing
home‐25
Paid nursing
home‐26

Property name

AQUAMARINE
Nishinomiyahama
Bonsejour Chitose‐
funabashi
Bonsejour Hino

Type of facility

Paid nursing
home
Paid nursing
home
Paid nursing
home
Paid nursing
home

BonsejourMusashi‐shinjo
Medical Rehabilitation
Paid nursing
Home Bonsejour
home
Hadanoshibusawa
Medical Rehabilitation
Paid nursing
Home Bonsejour
home
Komaki
Paid nursing
ASHEIM Hikarigaoka
home
ASHEIM
Paid nursing
Bunkyohakusan
home
SOMPO CARE La vie Paid nursing
Re Machidaonoji
home
SOMPO CARE La vie Paid nursing
Re Azamino
home
SAWAYAKA
Paid nursing
Tachibanakan
home
SAWAYAKA
Paid nursing
Mekarikan
home
SAWAYAKA
Paid nursing
Tagawakan
home
GOOD TIME HOME
Paid nursing
Fudo‐maehome
Paid nursing
Bonsejour Yotsugi
home
Residential type
Medical Home
paid nursing
Bonsejour Itami
home
Kobe Gakuentoshi
Building
Paid nursing(Hapine Kobe
home
Gakuentoshi)
Paid nursing
GreenLife Moriguchi
home
Hapine Kobe Uozaki
Paid nursing
NibankanhomeGranda Tsuruma‐
Paid nursing
Yamatohome
Smiling Home Medice Paid nursing
Adachihome
AIKOEN ICHIBANKAN Paid nursing
Building
home
Paid nursing
Hanakotoba Minami
home
Paid nursing
Hanakotoba Miura
home
SOMPO CARE La vie Paid nursing
Re Hama‐Kawasaki
home
Hanakotoba Shin‐
Paid nursing
Yokohama
home

Operator

GREEN LIFE Co.,Ltd.
Benesse Style Care
Co., Ltd.
Benesse Style Care
Co., Ltd.
Benesse Style Care
Co., Ltd.

No. ofNo. ofCapacity
Occupancy Preparation date ofrooms
residents
Property Disclosure(persons)
rate (%) Statement of Important(rooms)(persons)(Note 2)
(Note 1)
Matters (Note 3)(Note 1)
(Note 1)

90

100

99

99.0

July 1, 2022

42

47

37

78.7 May 1, 2022

56

58

50

86.2 May 1, 2022

46

49

45

91.8 June 1, 2022

Benesse Style Care
Co., Ltd.

100

101

88

87.1 April 1, 2022

Benesse Style Care
Co., Ltd.

124

AS PARTNERS Co.,Ltd
AS PARTNERS Co.,
Ltd

165

130

78.8 April 1, 2022

89

81

91.0 April 1, 2022

50

52

43

82.7 April 1, 2022

Sompo Care Inc.

163

169

114

67.5 April 1, 2022

Sompo Care Inc.

145

145

144

99.3 June 1, 2022

104

104

99

95.2 April 1, 2022

95

95

77

81.1 April 1, 2022

60

60

58

96.7 April 1, 2022

61

67

58

86.6

61

65

53

81.5 April 1, 2022

Benesse Style Care
Co., Ltd.

62

64

53

82.8 April 1, 2022

GREEN LIFE Co.,Ltd.

131

138

128

92.8

July 1, 2022
August 12,
2022

October 1,
2021

GREEN LIFE Co.,Ltd.

155

189

189

100.0

GREEN LIFE Co.,Ltd.

47

47

45

95.7 August 1, 2022

73

90

69

76.7 May 1, 2022

82

82

77

93.9 June 1, 2022

90

90

82

91.1 May 1, 2022

Proud Life Inc.

51

51

46

90.2 May 1, 2022

Proud Life Inc.

53

54

46

85.2 May 1, 2022

Sompo Care Inc.

58

58

52

89.7 April 1, 2022

Proud Life Inc.

136

136

118

86.8 April 1, 2022

Benesse Style Care
Co., Ltd.
GREEN LIFEHIGASHI NIHON
Co., Ltd.
Medical Corporation
AIKOKAI

Property namePaid nursing
home‐27

Hanakotoba Shin‐Yokohama II

Paid nursing
home‐28
Paid nursing
home‐29
Paid nursing
home‐30
Paid nursing
home‐31
Paid nursing
home‐32
Paid nursing
home‐33
Paid nursing
home‐34

83

Sawayaka Club Co.,Ltd.
Sawayaka Club Co.,Ltd.
Sawayaka Club Co.,
Ltd.
JAPAN LIFEDESIGN
Inc.
Benesse Style Care
Co., Ltd.

Property
number

Paid nursing
home‐35
Paid nursing
home‐36
Paid nursing
home‐37

Paid nursing
home‐38

Paid nursing
home‐39
Paid nursing
home‐40
Paid nursing
home‐41
Paid nursing
home‐42
Servicedhousing forthe elderly‐1Servicedhousing forthe elderly‐2Servicedhousing forthe elderly‐3
Complex of
paid nursing
homes,medi
cal service
relatedfacilities,etc.
‐1

Type of facility

Paid nursing
home
Paid nursing
Hanakotoba Odawara
home
Paid nursing
Verde Minowa
home
Paid nursing
Verde Hotaka
home
Sunny Life Kita‐
Paid nursing
Shinagawahome
Residential type
Sunny Life Kamakura paid nursing
homeNichii Home
Paid nursing
Nishikokubunji
home
SOMPO CARE La vie
Paid nursing
Re Kobe-ikawadani
home
SOMPO CARE
Paid nursing
Sompo no ie Sayama home
Paid nursing
Royal Kawaguchi
home
Residential type
NOAH GARDEN
paid nursing
LEGENDhome
Residential type
NOAH GARDEN L
paid nursing
Grace
home
Residential type
NOAH GARDEN
paid nursing
Season Bellhome
Heartland Kawaguchi Paid nursing
Meiseienhome
Paid nursing
Granda Minamiurawa
home
Paid nursing
Madoka Minamiurawa
homeServiced
SOMPO CARE Sompo
housing
no ie S Awajiekimaefor the elderly
Serviced
SOMPO CARE Sompo
housing
no ie S Kobekamisawa
for the elderly
Serviced
NOAH GARDEN CASA
housing
RICH
for the elderly
SHIP Senri Building(Note 4)
Total

Operator

No. ofNo. ofCapacity
Occupancy
rooms
residents(persons)
rate (%)(rooms)(persons)(Note 2)
(Note 1)
(Note 1)
(Note 1)

Preparation date of
Property DisclosureStatement ofImportant Matters(Note 3)

Proud Life Inc.

29

30

29

96.7 April 1, 2022

Proud Life Inc.

60

65

63

96.9

Verde Corporation

174

206

193

93.7 March 1, 2022

Verde Corporation

121

174

172

98.9 April 1, 2022

Kawashima
Corporation

66

66

59

89.4 April 1, 2022

Kawashima
Corporation

128

128

114

89.1 July 1, 2022

Nichii Carepalace
Company

46

46

43

93.5 April 1, 2022

Sompo Care Inc.

80

80

67

83.8 April 1, 2022

Sompo Care Inc.

50

50

46

92.0 April 1, 2022

SENIOR LIFE
SUPPORT Co.,Ltd

56

56

49

87.5 April 1, 2022

Noah Konzer Co.,Ltd.

72

72

59

81.9

September 21,
2021

Noah Konzer Co.,Ltd.

51

51

47

92.2

September 21,
2021

Noah Konzer Co.,Ltd.

136

136

90

66.2

September 21,
2021

Meisho Co., Ltd.

97

100

100

100.0 June 15, 2022

58

60

54

90.0 April 1, 2022

54

54

47

87.0 April 1, 2022

Sompo Care Inc.

137

137

116

84.7 April 1, 2022

Sompo Care Inc.

85

85

74

87.1 April 1, 2022

Noah Konzer Co.,Ltd.

115

115

98

85.2

Hospital, paid
nursing homewith nursing
home

GREEN LIFE Co.,Ltd.

181

200

200

100.0 July 1, 2022

-

-

4,014

4,276

3,801

Benesse Style Care
Co., Ltd.
Benesse Style Care
Co., Ltd.

88.9

November 1,
2021

September 21,
2021-(Note 1) “No. of rooms,” “Capacity” and “No. of residents” indicate figures based on figures stated in Property DisclosureStatement of Important Matters(hereinafter the “Property Disclosure Statement of Important Matters”) of paid nursing homes provided by theoperators.
(Note 2) “Occupancy rate” indicates the occupancy rate obtained by dividing the number of residents by capacity,rounded to one decimal place.
(Note 3) “Preparation date of Property Disclosure Statement of Important Matters” indicatesthe date of application,reference date or preparation date stated on the document.
(Note 4) SHIP Senri Building is a property with a hospital and paid nursing home, and the above table provides an
overview of the facilities related to its paid nursing home.

31

８．Output Indicators
Overview of Medical Service-Related Facilities (as of the end of 15th FP)
Property
numberMedical service‐related facilities‐1

Property name

Niigata Rehabilitation Hospital

Operator

Medical Corporation AIKOKAI

Type of facility

Hospital

Subject of
medicaltreatment

Rehabilitation, orthopedic surgery,internal medicine, neurology, dental &dental and oral surgery

Property nameDate ofestablishment

June 1990(established as Oyama Hospital, the precursor)
168 beds
Authorized number(general beds: 108 beds/convalescent‐of beds
stage beds: 60 beds)
Training facilities certified by the Japanese
Facility certification
Association of Rehabilitation Medicine

2nd floor (48 beds) Hospitalization fee of hospital ward for comprehensive community care 1
Facility criteria
3rd floor (60 beds) Basic hospitalization fee for general hospital ward (acute hospitalization fee 4)(Hospitalization
Medical management fee for comprehensive community care 1fee)
4th floor (60 beds) Hospitalization fee of hospital ward for rehabilitation at recovery stage 1External
evaluation

Hospital certified by Japan Council for Quality Health Care (Certification number: JC1424‐3) 3rdG:Ver.1.1
Added function Rehabilitation function (Certification number: JC1424‐R2) Ver.3.0

Property
numberComplex of paid nursing homes,medical service related facilities,etc.‐1

Property nameSHIP Senri Building (Senri‐Chuo Hospital) (Note)

Operator

Medical Corporation Kyowakai

Type of facility

Hospital

Subject of
medicaltreatment

Date ofestablishment
Authorized numberof beds

400 beds (400 general beds)

West 6th floor (25 beds) Palliative care hospitalward hospitalization fee 2

East 6th floor (25 beds) Facilities for the disabled,
etc. 2 10:1 Basic hospitalization fee

West 5th floor (50 beds) Facilities for the disabled,
etc. 2 10:1 Basic hospitalization fee

East 5th floor (50 beds) Facilities for the disabled,
etc. 2 10:1 Basic hospitalization fee

West 3rd floor (50 beds) Facilities for the disabled,
etc. 2 10:1 Basic hospitalization fee

External
evaluation

October 2008

Rehabilitation, orthopedics,
Training facilities certified by the Japaneseneurosurgery,surgery,internal medicine Facility certification
Association of Rehabilitation Medicine
and neurology

Facility criteriaWest 4th floor (50 beds) Facilities for the disabled,(Hospitalizatio
etc. 2 10:1 Basic hospitalization fee
n fee)

Earnings Performance (as of the end of 15th FP)

East 4th floor (50 beds) Facilities for the disabled,
etc. 2 10:1 Basic hospitalization fee
East 3rd floor (50 beds) Recovery phaserehabilitation ward hospitalization fee 1

West 2nd floor (50 beds) Recovery phaserehabilitation ward hospitalization fee 1
Hospital certified by Japan Council for Quality Health Care (Certification number: JC2382) 3rdG:Ver.2.0(Note) SHIP Senri Building is a property with a hospital and paid nursing home, and the above table provides an
overview of the facilities related to its hospital.

AQUAMARINE
Nishinomiyahama
Bonsejour Chitose‐
funabashi(Unit: thousands of yen)
Current fiscal period (from February 1, 2022, to July 31, 2022)
Operating revenue from real
Operating expenses from real estate leasing
estate leasing
ＮＯＩ
Outsourc
Insuranc
RepairDeprecia Other,
Rent
Other
Property(Note 3)ing
eexpensestion
netrevenue revenue
tax
expenses
expenses

Bonsejour Hino
Bonsejour Musashi‐
shinjoMedicalRehabilitation
Home Bonsejour
Hadanoshibusawa
MedicalRehabilitation
Home Bonsejour
KomakiASHEIM
Hikarigaoka
ASHEIM
Bunkyohakusan
SOMPO CARE La vie
Re Machidaonoji
SOMPO CARE La vie
Re Azamino
SAWAYAKA
Tachibanakan
SAWAYAKA
Mekarikan
SAWAYAKA
Tagawakan
GOOD TIME HOME
Fudo‐mae
Bonsejour Yotsugi
Medical Home
Bonsejour Itami
Kobe Gakuentoshi
Building (Hapine
Kobe Gakuentoshi)
GreenLife Moriguchi
Hapine Kobe Uozaki
Nibankan
Granda Tsuruma‐
YamatoSmiling Home
Medice Adachi
AIKOENICHIBANKAN
Building
Hanakotoba Minami
Hanakotoba Miura
SOMPO CARE La vie
Re Hama‐Kawasaki

Not disclosed(Note 2)

24,765

4,249

2,100

468

236

17,310400

59,888

5,607

1,813

225

-

119

3,048

401

21,366

5,078

1,247

214

-

85

3,130

400

19,496

4,126

1,031

167

-

80

2,447

400

16,138

8,399

1,813

213

-

154

5,817

400

21,097

14,137

4,553

201

-

355

8,627

400

39,542

16,645

3,868

381

522

212

11,260400

40,364

12,530

2,572

381

250

129

8,795

400

38,453

48,621

5,945

780

1,959

392

39,144400

95,522

34,224

4,705

780

3,512

285

24,540400

75,52026,620

2,669

1,200

-

370

21,980400

47,213

26,486

2,984

1,200

-

273

21,628400

43,375

8,487

1,108

1,200

-

119

5,659

400

12,85615,164

3,061

600

190

182

10,730400

46,566

4,934

950

223

-

73

3,286

400

20,660

6,533

1,390

371

-

111

4,260

400

13,94952,509

9,568

900

303

579

40,758400 114,648

39,791

6,999

1,363

3,220

379

27,428400 107,636

9,684

1,393

1,200

122

90

6,478

400

24,294

7,262

1,934

618

-

152

4,158

400

27,144

20,140

3,327

540

4,191

177

11,503400

56,571

8,477

2,552

780

-

112

4,632

400

20,564

9,495

1,543

600

1,711

79

5,161

400

26,265

9,902

1,555

600

998

88

6,260

400

16,766

18,846

3,463

2,770

113

206

11,891400

45,39632

８．Output Indicators
Earnings Performance (as of the end of 15th FP)

Property nameHanakotoba
Shin‐ Yokohama
Hanakotoba
Shin‐ Yokohama
II
Hanakotoba
OdawaraVerde Minowa
Verde Hotaka
Sunny Life Kita‐
Shinagawa
Sunny Life
Kamakura
Nichii Home
Nishikokubunji
SOMPO CARE La
vie Re Kobeikawadani
SOMPO CARE
Sompo no ie
SayamaSOMPO CARE
Sompo no ie S
Kobekamisawa

249

8,543

400

53,024

5,674

2,521

600

-

92

2,061

400

11,198

9,260

1,393

600

787

99

5,981

400

24,32026,964

5,242

1,020

260

508

19,533400

56,477 nursing

home‐1

AQUAMARINE
Nishinomiyahama

Paidnursinghome‐2

Bonsejour
Chitose‐funabashi

Paidnursing

Bonsejour Hino

NiigataRehabilitation
Hospital
SHIP Senri
Building
2,371,156 2,360,228

Property
numberPaid

Property nameAppraisalcompany

Rich Appraisal
Institute Co.,Ltd.
The Tanizawa
Sogo Appraisal
Co., Ltd.
The Tanizawa
Sogo Appraisal
Co., Ltd.
The Tanizawa
Sogo Appraisal
Co., Ltd.
The Tanizawa
Sogo Appraisal
Co., Ltd.
The Tanizawa
Sogo Appraisal
Co., Ltd.

Summary of Appraisal Report (Note 1)
DirectAppraisa
Appraisa
Appraisal capitalization
DCF method
l
l
value
method
NOI
NOI
yield
(millions IndicatedIndicated
Terminal(millions
Capitaliz
Discount(%)
of yen)value
value
capitalizaof yen)ation
rate (%)(Note 4)(millions(millionstion rate(Note 3)rate (%)(Note 2)of yen)of yen)
(%)
2,100

2,110

5.2

2,090

4.9

5.4

117

6.0

997

1,020

4.3

987

4.4

4.5

48

5.9

818

832

4.8

812

4.9

5.0

43

6.0

643

653

5.1

638

5.2

5.3

39

6.8

850

864

5.0

844

5.1

5.2

47

6.5

1,450

1,460

5.5

1,440

5.6

5.7

92

7.3

26,616

2,211

1,020

1,625

249

21,110400

44,600

10,185

2,798

600

-

119

6,265

401

45,58012,719

2,769

720

-

179

8,650

400

38,830 home-3

4,029

1,220

660

25

92

1,631

400

18,743 nursing

BonsejourMusashi‐shinjo

nursinghome-6

Medical Rehabilitation
Home Bonsejour
Hadanoshibusawa
Medical Rehabilitation
Home Bonsejour
Hadanoshibusawa

nursing

ASHEIM Hikarigaoka

Japan Real
Estate Institute

1,560

1,560

4.6

1,550

4.4

4.7

76

5.5

Paid
nursinghome-8Paid
nursinghome-9Paid
nursinghome-10Paidnursinghome-11Paid
nursinghome-12Paidnursinghome-13Paid
nursinghome-14ASHEIM
Bunkyohakusan

Japan Real
Estate Institute

1,750

1,760

4.2

1,740

4.0

4.3

74

5.2

SOMPO CARE La vie
Re Machidaonoji

Japan Real
Estate Institute

4,050

4,070

4.6

4,020

4.4

4.7

193

5.3

SOMPO CARE La vie
Re Azamino

Japan Real
Estate Institute

3,400

3,420

4.4

3,370

4.2

4.5

156

5.1

SAWAYAKA
Tachibanakan

Japan Real
Estate Institute

1,580

1,590

5.4

1,560

5.2

5.6

93

6.1

SAWAYAKA Mekarikan

Japan Real
Estate Institute

1,450

1,460

5.5

1,430

5.3

5.7

85

6.2

SAWAYAKA
Tagawakan

Japan Real
Estate Institute

391

394

5.6

387

5.4

5.8

25

6.4

GOOD TIME HOME
Fudo‐maeJapan Real
Estate Institute

2,050

2,070

4.2

2,030

4.0

4.3

91

5.2

886

902

4.7

879

4.8

4.9

47

5.7

557

566

5.1

553

5.2

5.3

38

7.5

4,540

4,600

4.6

4,520

4.4

4.8

227

5.2

4,500

4,560

4.5

4,470

4.3

4.7

220

5.3

8,211
6,025

Paid

home-4

-

750

681

191

8,218

400

35,184 Paid

-

750

-

104

2,700

396

17,658 Paid

-

1,647

1,097

182

5,087

399

33,874 Paid

-

300

-

130

7,615

165

26,403 home-7

-

300

-

102

5,458

165

19,454

487

-

141

9,206

271

29,325-nursinghome-5

10,086

-

487

-

148

9,177

271

36,607

4,577

-

325

-

89

4,026

135

18,462

3,175

-

325

60

71

2,582

135

14,54628,052

4,903

510

710

298

21,230400

57,635

16,897

NOAH GARDENCASA RICH

Total

2,926

10,107

MadokaMinamiurawa
SOMPO CARE
Sompo no ie S
Awajiekimae

Summary of Appraisal Report (as of the end of 15th FP)

900

8,413

GrandaMinamiurawa

ＮＯＩ（Note 3）

4,413

3,951

Not disclosed(Note 2)Other,
net

17,431

10,240Royal Kawaguchi
NOAH GARDEN
LEGENDNOAH GARDEN
L Grace
NOAH GARDEN
Season BellHeartland
Kawaguchi
Meiseien(Unit: thousands of yen)

Current fiscal period (from February 1, 2022, to July 31, 2022)
Operating revenue from real
Operating expenses from real estate leasing
estate leasing
Outsourc
Insuranc
RepairDeprecia
Rent
Other
Propertye
ing
tion
expensesrevenuerevenuetax
expenses
expenses(Note 1) All figures indicated are rounded down to the nearest thousand yen.
(Note 2) “Real estate lease business revenue,” “rent revenue” and “other revenue” of each property are not disclosed
as consent for disclosure has not been obtained from tenants. The total is the sum of amounts received asrent for the current fiscal period based on the lease agreements.
(Note 3) “NOI” = Real estate lease business revenue – real estate lease business expenses + depreciation andamortization

2,912

510

-

183

12,892400

36,284Paid
nursinghome-15

14,748

-

300

-

238

14,044165

50,074 Paid

27,754

9,656

1,030

112

387

16,068500

78,193 nursing

80,48827,640

1,500

-

1,183

49,764400

10,928 784,089 143,989

34,95625,845

10,093 551,793

nursinghome-16Paid

home-17
Paid

341,078 nursing
17,410 2,138,860 home-18

Bonsejour Yotsug
Medical Home
Bonsejour Itami
Kobe Gakuentoshi
BuildingGreenLife Moriguchi

The Tanizawa
Sogo Appraisal
Co., Ltd.
The Tanizawa
Sogo Appraisal
Co., Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.

33

８．Output Indicators
Summary of Appraisal Report (as of the end of 15th FP)

Property
number

Property nameDaiwa Real EstateAppraisal Co., Ltd.
The Tanizawa
Paid nursing Granda Tsuruma‐
Sogo Appraisal
home-20
YamatoCo., Ltd.
The Tanizawa
Paid nursing Smiling Home
Sogo Appraisal
home-21
Medice AdachiCo., Ltd.
AIKOENThe Tanizawa
Paid nursing
ICHIBANKAN
Sogo Appraisal
home-22
Building
Co., Ltd.
Japan Real Estate
Paid nursing Hanakotoba
home-23
Minami
Institute
The Tanizawa
Paid nursing
Hanakotoba
Miura
Sogo
Appraisalhome-24
Co., Ltd.
SOMPO CARE La
JLL Morii
Paid nursingvie Re Hama‐
Valuation &home-25
KawasakiAdvisory K.K.
Japan Real Estate
Paid nursing Hanakotoba Shin‐home-26
Institute
Yokohama
Japan Real Estate
Paid nursing Hanakotoba Shin‐home-27
Yokohama II
Institute
The Tanizawa
Paid nursing Hanakotoba
Sogo
Appraisal Co.,
Home -28
OdawaraLtd.
Daiwa Real Estate
Paid nursing
Verde Minowa
Home -29
Appraisal Co., Ltd.
Daiwa Real Estate
Paid nursing
Verde Hotaka
Home -30
Appraisal Co., Ltd.
Sunny
Life
Kita‐
Daiwa Real Estate
Paid nursing
Home -31
ShinagawaAppraisal Co., Ltd.
The Tanizawa
Paid nursing Sunny Life
Sogo Appraisal Co.,
Home -32
KamakuraLtd.
Daiwa Real Estate
Paid nursing Nichii Home
Home -33
Nishikokubunji
Appraisal Co., Ltd.
Paid nursing SOMPO CARE La vie Rich Appraisal
Home -34
Re Kobe-ikawadani Institute Co.,Ltd.
SOMPO CARE
Rich Appraisal
Paid nursing
Sompo no ie
Home -35
Institute Co.,Ltd.
SayamaDaiwa Real Estate
Paid nursing
Royal Kawaguchi
Home -36
Appraisal Co., Ltd.
The Tanizawa
Paid nursing NOAH GARDEN
Sogo Appraisal Co.,
Home -37
LEGENDLtd.
The Tanizawa
Paid nursing NOAH GARDEN L
Sogo Appraisal Co.,
Home -38
Grace
Ltd.
The Tanizawa
Paid nursing NOAH GARDEN
Sogo Appraisal Co.,
home-39
Season Bell
Ltd.
Paid nursing
home-19

Hapine Kobe
Uozaki Nibankan

Appraisalcompany

Summary of Appraisal Report (Note 1)
DirectAppraiscapitalization
DCF method
AppraisalAppraisal
method
al
value
NOI
NOI
Discoun(millions Indicated Capitaliz Indicatedyield
Terminal(millionst(%)
of yen)
value
ation
value
capitalizaof yen)rate(Note 4)(millions rate (millions
tion(Note 3)(%)
of yen)of yen)rate (%)(%)(Note 2)
995

1,010

4.6

988

4.4

4.8

48

5.2

1,060

1,070

4.7

1,050

4.8

4.9

53

5.3

2,500

2,540

4.6

2,480

4.7

4.8

120

5.3

860

864

5.2

858

5.3

5.4

45

5.8

1,240

1,250

4.4

1,230

4.2

4.5

56

5.2

668

676

4.8

664

4.9

5.0

35

5.6

1,810

1,840

4.6

1,780

4.4

4.8

89

5.2

2,400

2,420

4.2

2,380

4.0

4.3

109

5.2

383

385

5.0

380

4.8

5.2

21

5.8

946

959

4.9

9404.8～5.0

5.1

49

5.6

1,700

1,710

5.0

1,690

4.8

5.2

109

6.7

1,430

1,440

5.4

1,420

5.2

5.6

91

6.9

2,040

2,070

4.3

2,020

4.1

4.5

90

4.9

1,620

1,640

4.4

1,610

4.5

4.6

76

5.3

760

772

4.3

755

4.1

4.5

36

5.0

1,300

1,320

4.3

1,290

4.1

4.5

63

4.9

647

656

4.7

643

4.5

4.9

32

5.4

1,310

1,320

4.3

1,300

4.1

4.5

62

4.9

910

920

5.1

910

5.2

5.3

48

5.6

660

660

5.1

660

5.2

5.3

35

5.6

1,520

1,530

5.0

1,520

5.1

5.2

78

5.8

Property
number

Property name

Paid
Heartland Kawaguchi
nursingHome -40 MeiseienPaidnursingGranda Minamiurawa
Home -41
Paidnursing
Madoka Minamiurawa
Home -42
Serviced
SOMPO CARE Sompo
housing
for theno ie S Awajiekimae
elderly-1
Serviced
SOMPO CARE Sompo
housing
for theno ie S Kobekamisawa
elderly-2
Serviced
NOAH GARDEN CASA
housing
for the
RICH
elderly -3
MedicalNiigata Rehabilitation
service‐relatedHospitalfacilities‐1
Complexof paid
nursinghomes,medical
SHIP Senri Building
servicerelatedfacilities,et
c.‐1

Total

Appraisalcompany

Summary of Appraisal Report (Note 1)
Appraisa
DirectAppraisa
Appraisal capitalizationl
DCF methodlvalue
methodNOI
NOI(millions Indicatedyield
Indicated
Terminal(millions
Capitaliz
Discountof yen)
(%)
value
value
capitalizaof yen)ation
rate (%)(Note 4)(millions(millionstion rate(Note 3)rate (%)(Note 2)of yen)of yen)(%)

Japan Real Estate
Institute

2,180

2,190

4.3

2,160

4.1

4.4

100

5.0

Rich Appraisal
Institute Co.,Ltd.

1,100

1,110

4.1

1,090

3.9

4.2

49

4.8

Rich Appraisal
Institute Co.,Ltd.

883

893

4.1

879

3.9

4.2

39

4.8

Japan Real Estate
Institute

2,250

2,270

5.0

2,230

4.8

5.2

116

6.0

Japan Real Estate
Institute

1,390

1,400

5.0

1,370

4.8

5.2

72

6.0

The Tanizawa
Sogo Appraisal
Co., Ltd.

1,730

1,740

5.1

1,720

5.2

5.3

91

5.6

Japan Real Estate
Institute

2,300

2,310

6.5

2,290

6.3

6.7

153

7.4

The Tanizawa
Sogo Appraisal
Co., Ltd.

14,20014,4004.5

14,100 4.5～4.6

4.7

679

5.2

86,36487,256―85,727

―

4,378

5.5

―

(Note 1) “Appraisal value” is based on the appraisal report with July 31, 2022, as the appraisal date.
(Note 2) “Discount rate” represents a yield used to discount net cash flow during an analysis period and terminal value atthe end of an analysis period back to present value, and figures used by respective appraisal organizations areshown. For Hanakotoba Odawara, 4.8% for the first fiscal year and 5.0% from the second fiscal year, and for SHIP
Senri Building, 4.5% for the first and second fiscal years and 4.6% from the third fiscal year.
(Note 3) “Appraisal NOI” indicates net operating income obtained by direct capitalization method stated in the real estateappraisal report with July 31, 2022, as the appraisal date and is rounded down to the nearest million yen. In
addition, NOI is revenue before deducting depreciation and differsfrom NCF (net cash flow), which is the amount calculated by adding the gain on investment from security deposits,
etc. to NOI and deducting capital expenditures. The same shall apply hereinafter in this document.
(Note 4) “Appraisal NOI yield” is calculated by the formula below and rounded down to one decimal place. In the column of
total appraisal NOI yield, the average appraisal NOI yield, which is calculated by dividing the total appraisal NOI of
the respective real estate in trust by the total acquisition price, is shown (rounded down to the first decimal place).
Appraisal NOI yield = Appraisal NOI of the respective real estate in trust / Acquisition price of the respective realestate in trust34

８．Output Indicators
Capital Expenditures of Assets Under Management(as of the end of 15th FP)
Company Profile of Operators (as of the end of 15th FP)
Operator name14th FP (Ending January 2022) Actual

Name of real estate (Location)
SOMPO CARE Sompo no ie S
Awajiekimae (Osaka‐shi, Osaka)PurposeConstruction costs(thousands of yen)

PeriodHeadquarters location

Representative

Founded

3-20-8 Kasuga,
Suitashi, Osaka

Representative
Director
Nobuyuki Tamai

May
1994

GREEN LIFE HIGASHI 1-4-16, Yaesu,
NIHON Co., Ltd.
Chuoku, Tokyo

Representative
Director
Nobuyuki Tamai

July
2003

GREEN LIFE Co., Ltd.

Capital stockor total assets(millions of yen)

Attribute

Consolidated subsidiary of
Ship Healthcare Holdings
Inc. which is listed on the
TSE Prime Market
Consolidated subsidiary of
Ship Healthcare Holdings
50
Inc. which is listed on the
TSE Prime Market
Consolidated subsidiary of
Sompo Holdings, Inc.,
3,925
which is listed on the TSE
Prime Market
50

Renovation of exterior walls

From: October 2021
To: January 2022

30,920

SOMPO CARE Sompo no ie S
Kobekamisawa (Kobe‐shi, Hyogo)

Renovation of exterior walls

From: November 2021
To: January 2022

23,617

AQUAMARINE Nishinomiyahama(Nishinomiya‐shi, Hyogo)

Renewal of 66 air conditioner
units in rooms

From: November 2021
To: January 2022

8,217

Sompo Care Inc.

4-12-8HigashiShinagawa,Shinagawa-ku, Tokyo

Representative
Director
Ken Endo

May
1997

SAWAYAKA Mekarikan(Kitakyushu‐shi, Fukuoka)

Renewal of air conditioners incommon areas on floors 1‐3

From: November 2021
To: November 2021

6,566

Kyowakai Medical
Corporation

16-5, Chuocho,
Kawanishi-shi, Hyogo

Director Toru
Kitagawa

August1982

6,110 ―－

59,138Benesse Style Care
Co., Ltd.

2-3-1, Nishi-Shinjuku,
Shinjuku-ku, Tokyo

Representative
Director
Shinya Takiyama

September
1995

100

Representative
Director
Hiroshi Sonoda

July
2006

Other real estate, etc.

－
Total



128,460

Proud Life Inc.

15th FP (Ending July 2022) Actual

Name of real estate (Location)

PurposeConstruction costs(thousands of yen)

PeriodGreenLife Moriguchi(Moriguchi-shi, Osaka)Renewal of flooring materials
for corridors on floors 3-8

From: April 2022
To: May 2022

15,048

Niigata Rehabilitation Hospital(Niigata-shi, Niigata)Renovation of exterior walls ofmachine room and storage
room for hazardous materials

From: March 2022
To: June 2022

14,800

GreenLife Moriguchi(Moriguchi-shi, Osaka)Renewal of 74 air conditioner
units in rooms for floors 5-8

From: December 2021
To: March 2022

13,310－68,027

Other real estate

－
Total



111,185

16th FP (Ending January 2023) Plan

Name of real estate (Location)

Purpose

PeriodEstimated construction costs(thousands of yen)
Total
Payment Total amountAmount during period already paid

Niigata Rehabilitation Hospital(Niigata-shi, Niigata)

Rooftop waterproofing andrenovation of exterior
walls of south building

From: October 2022
To: December 2022

50,250－－ASHEIM Hikarigaoka(Nerima‐ku, Tokyo)

Renewal of air conditioners From: November 2022
in common areas
To: December 2022

21,000－－

GreenLife Moriguchi(Moriguchi-shi, Osaka)

LED lighting

From: September 2022
To: January 2023

20,000－－SAWAYAKA Tagawakan(Tagawa‐shi, Fukuoka)

Rooftop waterproofing

From: November 2022
To: December 2022

7,000

－

－

SAWAYAKA Tagawakan(Tagawa‐shi, Fukuoka)

Renewal of bathroom tile

From: November 2022
To: December 2022

4,000

－

－

Sawayaka Club
Co.,Ltd.

1-2-4,Isago,
Kawasakiku,Kawasaki-shi,
Kanagawa
2-10-10 Kumamoto,
Kokurakitaku,Kitakyushu-shi,
Fukuoka

Representative
DecemberDirector
2004
Fumiharu Uchiyama

Consolidated subsidiary ofBenesse Holdings, Inc.,
which is listed on the TSE
Prime Market
Consolidated subsidiary ofSony Group Corporation,
3
which is listed on the TSE
Prime Market
Consolidated subsidiary of
UCHIYAMA HOLDINGS Co.,
100
Ltd., which is listed on the
TSE Standard Market

Kawashima
Corporation

248-2, Higashiinohara,
Kimitsu-shi, Chiba

Verde Corporation

839-4, Kamishiba,
Misatomachi,
Takasakishi, Gunma

Representative
Director
Teruo Kawashima
Representative
Director
Tomoyuki Higuchi

Medical Corporation
AIKOKAI761 Kizaki, Kita-ku,
Niigata-shi, Niigata

Director
Hiromu Ikeda

November
1993

344

2-2,
AS PARTNERS Co.,Ltd. Kanda surugadai,
Chiyoda-ku, Tokyo

Representative
DirectorTakeshi Uemura

November
2004

122 Unlisted company

JAPAN LIFEDESIGN
Inc.

1-7-1, Akasaka,
Minato-ku, Tokyo

Representative
Director
Shosetsu Ito

April
2004

Nichii Carepalace
Company

2-9, Kandasurugadai,
Chiyoda-ku,Tokyo

Representative
Director
Yukio Akiyama

June
1964

SENIOR LIFE
SUPPORT Co.,Ltd

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

Representative
Director
Akinori Fujimoto

November
2006

September
1990

50 Unlisted company

June
1970

30 Unlisted company
A medical corporation
which belongs to NSG
Group with sales of over
100 billion yen (Note 2)

Unlisted company
Capital partnership with
Nomura Real Estate
Holdings, Inc.
Unlisted company
80 Consolidated subsidiary of
NICHIIGAKKAN CO., LTD.
Affiliated company of
ZENSHO HOLDINGS
30
Co.,Ltd., which is listed on
the TSE Prime Market

340

Representative
14-1-32, Nanajou,
February
Hiragishi, Toyohira-ku,
Director
100 Unlisted company
1979
Sapporo-shi, Hokkaido Akihiro Wakatsuki
Representative
4-3-5,
Hokima,AugustMeisho Co., Ltd.
Director
10 Unlisted company
Adachi-ku,Tokyo
1998
Chiyoshi Fujita(Note 1) “Headquarters location,” “Representative,” “Founded” and “Capital stock or total assets” are based on theinformation in the registry as of July 1, 2022. Only one person is described in the "Representative," "Capital stockor total assets" is rounded off to the nearest million yen.
(Note 2) Indicates the actual figures in September 2021 based on NSG Groupʼs website.

NOAH KONZER
Co.,Ltd35

９．Current Status and Issues Surrounding Medical and Nursing Care

Various Issues Derived from Declining Birthrate and Aging Population
Growing Demand for Nursing Care Services and Change in Medical Services
With the aging of the population, it is forecast that the number of people eligible to receive nursing
care will continue to increase and that it will become more difficult than ever to take care of membersin the same household due to the declining birthrate and change in family structure. In order to
respond to the increasing needs for nursing care, it is necessary to secure caregivers and promote thesupply of healthcare facilities. It is expected that the number of deaths due to aging will increase andthe number of people who spend their final days at homes and facilities for the elderly other than
medical institutions will increase rapidly. In the future, the role of facilities for the elderly, etc. bycaregivers will be emphasized, and cooperation between medical services (in-home medical care) at
homes and facilities for the elderly by medical institutions and institutions related to medical service
and nursing care will be required.

Progress in Population Decline and Aging

Japanʼs population of elderly people aged 65 or older is estimated to be 36 million and 27 thousand(as of September 15,2022), representing 29.1% of the total population, which makes it the mostaged society in the world. Due to the population aged 65 or older growing while the total population
is decreasing and the birthrate declining, the aging rate will continue to increase, with the National
Institute of Population and Social Security Researchʼs “Population Projection for Japan (2017
Projection)” estimating that it will reach 33.3% in 2036, resulting in a society where one in threecitizens are aged 65 years or older. As the proportion of people aged 75 or older in particular
continues to rise, the caregiver labor shortage caused by the declining birthrate and the increase incare needs due to the aging of society are starting to have a major impact on the medical and careindustries.

[Change in the Number of People Eligible to Receive Nursing Care by Degree of Nursing Care Required]
8million people

Require assistance
Require assistance level 2
Require nursing care level 1
Require nursing care level 3
Require nursing care level 5

7million people[Outlook for Change in Total Population and Aging Rate]

6million people（10 thousand people）

5million people

Increased by 2.6 times
during the period from2000 to 2020

4million people
3million people

345
256

384

409

432

440

Require assistance level 1
Transitional
Require nursing care level 2
Require nursing care level 4
561
531
506
485
467
453

584

606

620

632

641

658

669

682

298

2million people
1million people
0million people
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

(Source) “Nursing Care Insurance Business Status Report“ of Ministry of Health, Labour and Welfare(Source) Created by HAM based on the Ministry of Internal Affairs and Communications Statistics Bureau 2020 Census and the
National Institute of Population and Social Security Researchʼs “Population Projection for Japan (2017 Projection)”(Source) Website of the Ministry of Internal Affairs and Communications Statistics Bureau, Statistics Topics No. 132,
“A Statistical View of Japanʼs Elderly Population: On the Occasion of Respect-for-the-Aged Day”

[Change in Number of Births and Birth Rate]

3.0million people

5

4.54

1949
2,696,638 people, the largest
number of births since 1947

2.5million people

Number of births (left axis)
Total fertility rate (right axis)

2.0million people

42021, 811,622 people, the smallest
number of births since 1947

1.5million people

3

2

1.30

1.0million people

1

0.5million people

0.0million people

19471950

1955

1960

1965

1970

1975

1980

1985

1990

1995

(Source) “Demographic Statistics (2021)“ of Ministry of Health, Labour and Welfare

2000

2005

2010

2015

2020

0

(Source) KPMG Healthcare Japan Co., Ltd(Note) CAGR (compound average growth rate) is the annual average growth rate obtained using the geometric mean
per year based on the growth rate over multiple years.

36９．Current Status and Issues Surrounding Medical and Nursing Care
(Reference) Environmental Improvement for Upgrading and Expanding Healthcare Facilities

Various Issues Derived from Declining Birthrate and Aging Population
Healthcare Facilities Requiring the Promotion of SupplyIn the Basic Housing Policy (National Plan) approved by the Cabinet on March 19, 2021, thegoal is to form and develop communities where diverse generations support each other andthe elderly can live in good health and peace of mind, and a target was set to raise the ratioof senior housing to the senior population from 2.5% in 2018 to 4% by 2030.
Ratio of Housing for the Elderly as a Percentage of the Elderly Population

In the “Japan Revitalization Strategy-JAPAN is BACK-” dated June 14, 2013, thegovernment announced its policy to “enact a guideline concerning acquisition andmanagement of housing for the elderly, etc. for the utilization of healthcare REITs with an
aim to utilize private fund” as part of urban development to enable the elderly, etc. to walkand live safely. Following this policy, the Ministry of Land, Infrastructure, Transport andTourism enacted the “Guideline related to the utilization of healthcare REITs targeting
housing for the elderly, etc.” on June 27, 2014, and the “Guideline related to REITs
targeting hospital real estate” on June 26, 2015, and guidelines for utilizing healthcare
REITs were established. As a measure to spread healthcare REITs, seminars targeting
related business operators jointly held by the Financial Services Agency, the Ministry ofLand, Infrastructure, Transport and Tourism, the Tokyo Stock Exchange, and the
Association For Real Estate Securitization have been held several times a year, and efforts
by the public and private sectors are being made.

(Note) Resident capacity is estimated based on the outcome indicator for the ratio of housing for the elderly as apercentage of the elderly population. In the plan, Housing for elderly means paid nursing home, serviced
housing for the elderly, group homes and Geriatric health services facilities.

[Capacity and Number of Users of Facilities and Housing for the Elderly]
Facilities covered by public aid providing long-term care to the elderly(Unit: units, people)(intensive care homes for the elderly)Long-term care health facilities (nursing and health facilities for the

700,000

elderly)Long-term care medical facility

627,000

600,000

606,394

Integrated facility for medical and long-term care
Nursing home for the elderly

500,000

Low-cost paid nursing home
400,000

Paid nursing home
358,300
Serviced housing for the elderly

300,000

Long-term daily care for dementia patients in communal living situation
262,021(Group homes)
200,000

211,700

100,000

95,07362,94433,70018,000

0
2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

(Source) Prepared by the Asset Management Company based on the “Statistics on the Actual Status of Nursing Care Benefits,etc.“ and “Survey on Social Welfare Facilities, etc.“ of Ministry of Health, Labour and Welfare, “Information Provision
System of serviced housing for the elderly “ on the website of the Senior Housing Association.
(Note) The number of users is shown for facilities covered by public aid providing long-term care to the elderly, Long-term carehealth facilities, long-term care medical facility and long-term daily care for dementia patients in communal living situation(Group homes).

37

９．Current Status and Issues Surrounding Medical and Nursing Care
Various Issues in Nursing Care

Personnel Shortage in the Nursing Care Industry

In fiscal 2021, the jobs-to-applicants ratio for nursing care-related occupations was 3.64
times, which is higher than that for all occupations.
Based on information such as the projected volume of nursing care services in the 8th
Nursing Care Insurance Business Plan, the number of required nursing care personnel, as
estimated by prefectural governments, will be shortage of approximately 690 thousand in
fiscal 2040.

[Jobs-to-Applicants Ratio (All Industries and Nursing Care-Related Occupations) and
Unemployment Rate]
Jobs-to-applicants ratio (all industries)

6％

Jobs-to-applicants ratio (nursing care-related jobs)
Unemployment rate

5％3.64 x4％

Abuse of the Elderly in Nursing Care

Abuse of the elderly in nursing care is also a major issue. There are various reasons forabuse, but there are many cases in which abuse is caused by the heavy burden of nursing
care, and there is a need to expand nursing care services responding to the need to reducethe burden of caregivers.
In addition, although the number of cases of abuse in nursing care facilities smaller thanthat of abuse by families, there are certain number of abuse in nursing care facilities,
nursing care business operators are taking actions toward workers at nursing care facilities
including improvement of the knowledge on abuse and holding trainings and preparing
manuals with an aim to prevent abuse and inappropriate care.

[Change in the Number of Cases of Elderly Abuse]
Caused by familiy members, relatives, people living together with such…

20,000 cases

Caused by workers at nursing care faxilities(right axis)

2.8%

3％

15,000 cases

2％

14,8891.03 x10,000 cases

1％0％2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021
(Source) Ministry of Health, Labour and Welfare, “Job Placement Service Statistics,” and Ministry of Internal Affairs
and Communications, “Labor Force Survey”

Number of nursing care human resources required

2.43 million people

2.5 million people
2.11 million people

2.33 million people
Shortage: Approx.
Shortage: Approx.
320 thousand people
220 thousand people

16,668 16,599
15,202

15,731 15,739 15,976

16,384

17,078 17,249 16,928 17,281

13,2737,500 cases

5,000 cases

2,500 cases

5,000 cases
54

62

70

76

96

151

155

221

300

408

452

510

621

644

595
0 cases

0 cases
Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal Fiscal[Needs for Nursing Care Human Resources Towards 2040]
3.0 million people

12,56915,615

10,000 cases

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

2.80 million people(Source) “Survey Results on the Status of Response Based on the “Act on the Prevention of Elder Abuse,Support for Caregivers of Elderly Persons and Other Related Matters“ in Fiscal 2019“ of Ministry of
Health, Labour and Welfare

Shortage: Approx.
690 thousand people

2.0 million people

1.5 million people
Fiscal 2019

Fiscal 2023

Fiscal 2025

Fiscal 2040

(Source) Ministry of Health, Labour and Welfare, “Number of Nursing Care Personnel Required Based on 8th Nursing
Care Insurance Business Plan – Appendix 1”

38

９．Current Status and Issues Surrounding Medical and Nursing Care
Actions by the Government and Local Governments

Further Increase in Social Security Benefits (Medical and Nursing Care)

There is a need to respond to the increasing and diversifying demand for medical andnursing care services within limited medical resources as well as establish a system that
effectively and efficiently provides high-quality and appropriate medical care. The “Regional
Healthcare Vision“ has been institutionalized by the “Act for Securing Comprehensive Medicaland Long-term Care in the Community“ aiming to establish a medical care provision systemthat can even withstand the super-aged society (Note ).

With the progress in aging population and declining birthrate, social security benefits inJapan are forecast to increase significantly, which is a major issue.

[Future Outlook for Social Security Benefits Towards 2040]
Pension

Medical

Nursing careChildcare

Other

Regional Healthcare Vision is an initiative to realize an efficient medical care provision systemby estimating the number of beds required in 2025 for each of the four medical functions
based on the future population projections and promoting functional differentiation of
hospital bed and coordination of hospitals through consultation by local medical staff.

188.2 – 190.0

200 trillion yen

Establishment of Regional Healthcare Vision and Promotion of Differentiation and
Coordination of Medical Functions

9.4
13.1
140.2 – 140.6
121.3

100 trillion yen

6.7
7.9
10.7
39.2

25.8

7.7
10.0
15.3

66.7 –
68.5

47.4 – 47.8

Medical institution

150 trillion yen

50 trillion yen

0 trillion yen

Fiscal 2018

59.9

Fiscal 2025(based on plan)

Fiscal 2040
(based on plan)(Source) “Future Outlook for Social Security Towards 2040“ of the Cabinet Secretariat, Cabinet Office,Ministry of Finance, Ministry of Health, Labour and Welfare

Voluntary
selectionof medicalcarefunctions73.2

Establishment of Regional Comprehensive Care System
With the further increase in demand for medical and nursing care after 2025 when the baby
boomers will be 75 or older, the government (Ministry of Health, Labour and Welfare) is
promoting the construction of a regional comprehensive care system that integrally provides
housing, medical service, nursing care, prevention and life support to enable the elderly tocontinue living in familiar areas until the end of their lives to the maximum extent possible
with an aim to maintain the dignity of the elderly and support independent life.
It is believed that the extension of healthy life expectancy and a society that supports theelderly by utilizing not only public services but also the power of the community can berealized with the regional comprehensive care system in accordance with the actual
circumstances of each region, leading to the securement of the sustainability of the social
security system.

Prefectural
government

56.7

Treatment
imbalance
andfinancialconcerns
due tooverempha
sis onadvanced
acutestages(Hospital
Ward A)
Advanced acutestage function(Hospital
Ward B)
Acute stage
function(Hospital
Ward C)
Recovery stage
function(Hospital
Ward D)
Chronic stage
function

Reporting on current
status of medical carefunctions and future
direction

Establishing “Regional Healthcare Vision” using
reports on medical functions, etc. and promoting
further function differentiation

Current hospital bed
function(as of 2020)

Number of beds to berequired in 2025

Total 1,209,000 beds

Total 1,191,000 beds
Advanced acutestage
131,000 beds
(11%)

Advanced acutestage
156,000 beds
(13%)

Decrease byapprox. 25%

Acute stage
401,000 beds
(34%)

Acute stage
547,000 beds
(45%)
Recovery stage
375,000 beds
(31%)

Recovery stage
189,000 beds
(16%)

Increase byapprox. 2 times
Chronic stage
284,000 beds
(24%)

Decrease byapprox. 10%
Chronic stage
317,000 beds
(26%)

Shift to nursing
care facilities, inhome medicalcare, etc.

Nursing care facilities,
in-home medical care,etc.
Approx. 300,000
people(Note) “Super-aged society” refers to a society in which the elderly population aged 65 or older (aging rate) accounts for
21% or more of the total population(Source) Created by HAM based on Ministry of Health, Labour and Welfareʼs “Regional Healthcare Vision”(October 9, 2020).
(Source) “Current Hospital Bed Function (as of 2020)” created by HAM based on a document entitled “About the 2020
Hospital Bed Function Report,” which was created by Ministry of Health, Labour and Welfare based on a 2020
hospital bed usage report; “Number of Beds to Be Required in 2025” created by HAM based on Ministry of
Health, Labor and Welfareʼs “Initiatives for Medical/Nursing Care Reform” (June 22, 2017).

39

９．Current Status and Issues Surrounding Medical and Nursing Care
Actions by the Government and Local GovernmentsEnvironmental Improvement for Securing Nursing Care Personnel
In order to respond to the needs for nursing care personnel which are expected to continue
increasing in the future, the government will implement measures such as the “improvementof working conditions for nursing care staff,“ “securement and training of various
personnel,“ “prevention of job separation, promotion of job retention and improvement of
productivity,“ “enhancement of the attractiveness of the nursing care profession“ and“environmental improvement for accepting foreign personnel.“ The improvement of thetreatment for nursing care personnel and improvement of productivity at nursing care sites
were also stated in “Japan 100 Million Total Active Plan.“

Actions for Preventing Abuse of the Elderly

The government and local governments are taking various actions to prevent the abuse of
the elderly.
・Construction of network to prevent elderly abuse
・Conducting survey based on the "Act on the Prevention of Elder Abuse, Support for
Caregivers of Elderly Persons and Other Related Matters" every year
・Formulation of manual to respond to abuse
・Development of a cooperative system with related institutions and private organizations
・Publicizing of information on support desk and name of cooperators responding to elderly
abuse, etc.

(Source) “Basics of Preventing Elderly Abuse” of Ministry of Health, Labour and Welfare(Source) Ministry of Health, Labour and Welfare, “Number of Nursing Care Personnel Required Based on 8th Nursing Care Insurance
Business Plan – Appendix 3: Comprehensive Measures to Secure Nursing Care Personnel (Main Actions)40Disclaimer
This material contains forward-looking statements including forecasts, outlooks, goals and plans.
These statements are based on the information available as of the date when this material is prepared andincorporate certain subjective assumptions about uncertain factors that may affect future results. Accordingly, thesestatements are inherently not guarantees of future performance and actual results may differ materially.
The opinions, outlooks and estimates contained in this material reflect our view and judgment based on information
as of the date when this material is prepared and involve risks and uncertainties.
No guarantee is made as to the accuracy, completeness, appropriateness and validity of information contained inthis material. It is not promised that information contained in this material will always be updated.
Contents of this material are subject to change without notice.
This material is not intended as a solicitation for investment. Any investment decision must be made based on yourown judgment and responsibility.

Asset management company:

Healthcare Asset Management Co., Ltd.
(Financial service provider registration: Director of Kanto Local Finance Bureau(Kinsho) No. 2815, member of the Investment Trusts Association, Japan)

41