This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

(REIT) Financial Report for Fiscal Period Ended July 2016
September 14, 2016

Securities Code:Healthcare & Medical Investment
Corporation
3455

Representative:

Seiji Yoshioka, Executive Director

REIT Securities Issuer

Stock Exchange Listing: Tokyo Stock Exchange
URL: http://www.hcm3455.co.jp/

Asset Management Company: Healthcare Asset Management Co., Ltd.
Representative:
Seiji Yoshioka, President & CEO
Contact:
Masayuki Tamura, Director ,Chief Financial Officer
TEL: +81-3-5282-2922
Scheduled date of submission of securities report:
Scheduled date of commencement of distribution payment:

October 26, 2016
October 21, 2016

Preparation of supplementary financial results briefing materials: Yes
Holding of financial results briefing session:
Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen)
1. Status of Management and Assets for Fiscal Period Ended July 2016 (from February 1, 2016 to July 31, 2016)(1) Management Status(% figures are the rate of period-on-period increase (decrease))
Fiscal period
Ended Jul. 2016
Ended Jan. 2016
Fiscal period

Operating revenue
million yen
%
771
3.5
745
36.5

Operating income
million yen%
342(10.8)
383
38.5

Net income per unit

Return on equity

yen
2,340
2,729

Ended Jul. 2016
Ended Jan. 2016

%
2.2
2.5

Ordinary income
million yen%
282(14.2)
329
341.8

Net income
million yen%
281(14.3)
328
347.2

Ratio of ordinary income
to total assets
%
1.0
1.2

Ratio of ordinary income
to operating revenue
%
36.7
44.2

(2) Distributions Status
Fiscal period

Distribution
per unit

Total
distributions(excluding distribution (excluding distributions
in excess of earnings) in excess of earnings)

yen
2,340
2,730

Ended Jul. 2016
Ended Jan. 2016
(3) Financial Position
Fiscal period

million yen
281
328

Distribution
in excess ofearnings
per unityen00

Total assets
million yen
27,896
26,874

Net assets
million yen
12,995
13,042

Net cashprovided by (used in)operating activities
million yen
551
602

Net cashprovided by (used in)investing activities
million yen(1,388)(47)

Ended Jul. 2016
Ended Jan. 2016

Total
distributions
in excess ofearnings
million yen
00Distribution
payout ratio
%
100.0
100.0

Equity ratio
%
46.6
48.5

Ratio ofdistributions
to net assets
%
2.2
2.5

Net assets per unit
yen
107,847
108,237(4) Status of Cash Flows
Fiscal period

Ended Jul. 2016
Ended Jan. 2016

－ 1 －Net cashCash and cash equivalents
provided by (used in)at end of period
financing activities
million yen
million yen
673
1,796
(72)
1,959

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
2. Management Status Forecast for Fiscal Period Ending January 2017 (from August 1, 2016 to January 31, 2017) andManagement Status Forecast for Fiscal Period Ending July 2017 (from February 1, 2017 to July 31, 2017)(% figures are the rate of period-on-period increase (decrease))
Fiscal period

Operating revenue
million yen

Operating income% million yen

Ordinary income% million yen

Net income% million yen

784
1.6
344
0.6
285
0.8
784
0.0
348
1.2
279
(2.1)
(Reference) Forecast net income per unit (fiscal period ending January 2017)
Forecast net income per unit (fiscal period ending July 2017)
Ending Jan. 2017
Ending Jul. 2017

Distribution
per unit(excluding distribution
in excess of earnings)
%
yen

284
0.8
278
(2.1)
2,360 yen
2,310 yen

Distribution inexcess of
earnings per
unit
yen

2,360
2,310

0
0

* Other(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement① Changes in accounting policies accompanying amendments to accounting standards, etc.: No② Changes in accounting policies other than ①:No③ Changes in accounting estimates:
No④ Retrospective restatement:No(2) Total Number of Investment Units Issued and Outstanding① Total number of investment units issued and outstanding (including own investment units) at end of period
Fiscal period ended July 2016
120,500 units
Fiscal period ended January 2016
120,500 units② Number of own investment units at end of period－ units－ units
Fiscal period ended July 2016
Fiscal period ended January 2016
(Note) For the number of investment units serving as the basis for calculation of net income per unit, please see “Notes
on Per Unit Information” on page 23.
* Presentation of Status of Implementation of Audit Procedures
At the time of disclosure of this financial report, audit procedures for financial statements pursuant to the Financial Instruments
and Exchange Act have not been completed.
* Explanation of Appropriate Use of Management Status Forecast, and Other Matters of Special Note
The forecast is a future prospect by the Investment Corporation judged based on information currently available and include many
uncertain factors. Actual operating revenue, operating income, ordinary income, net income and distribution per unit are subject
to change due to changes in circumstances. In addition, the forecast is not a guarantee of the amount of distributions. For theassumptions underlying the above forecast, please see “Assumptions Underlying Management Status Outlook for Fiscal PeriodEnding January 2017 and Fiscal Period Ending July 2017” on page 7.

－ 2 －This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

1.

Related Parties of the Investment Corporation
Disclosure is omitted because there is no significant change from “Structure of the Investment Corporation” in the most recent
securities report (submitted on April 27, 2016).

2.

Management Policy and Management Status(1) Management Policy
Disclosure is omitted because there is no significant change from “Investment Policy,” “Investment Targets” and“Distribution Policy” in the securities report as of today.
(2) Management Status① Overview of the Fiscal Period Under Review(a) Brief History of the Investment Corporation
The Investment Corporation was established under the Act on Investment Trusts and Investment Corporations with
Healthcare Asset Management Co., Ltd. (hereinafter, the “Asset Management Company”) as the organizer andinvestments in capital of 200 million yen (2,000 investment units) on December 9, 2014. An issuance of
new investment units through public offering (106,500 units) was implemented on March 18, 2015, and theinvestment securities were listed on the Real Estate Investment Trust Securities Market of Tokyo Stock Exchange, Inc.
(securities code: 3455) on March 19, 2015. In addition, an issuance of new investment units through third-party
allotment (12,000 units) in line with public offering was implemented on April 21, 2015. As a result, the total number ofinvestment units issued and outstanding stands at 120,500 units.
(b) Investment Environment and Management Performancea. Investment Environment
The Investment Corporation was established against the backdrop of social landscape in which expansion andenhancement of nursing care services and medical services through outside healthcare facilities has become an
imminent issue, at the time when the population which bears nursing care continues to shrink while aging advances thefastest in the developing nations and the number and percentage of the elderly among the total population is expected
to remain on the rise for the time being,.
The government has also indicated in “Housing Life Basic Plan (nationwide plan)” a policy target of increasing the ratio of
housing for the elderly to the elderly population to 4% in 2025 from 2.1% in 2014.
The Investment Corporation seeks to realize a society where all people can live vibrantly and with peace of mind as wellas to secure stable income and to achieve steady growth of the portfolio by promoting appropriate
maintenance/management and new supply of healthcare facilities through stable investment in and ownership ofhealthcare facilities that are under mounting social demand.
b. Management Performance
The Investment Corporation acquired 2 properties (Bonsejour Yotsugi and Medical Home Bonsejour Itami) on March 30,
2016 for 1,338 million yen.
At the end of the fiscal period under review, the Investment Corporation owns 18 properties with the total leasable area2of 72,638.45 m , the total number of tenants of 20 and the occupancy rate of 100.0%.
(c) Overview of Fund Procurement
The Investment Corporation upholds stable financial management as its basic policy to secure stable income and tomaintain/enhance asset value over the medium- to long-term. During the fiscal period under review, the Investment
Corporation procured 1,000 million yen in short-term loans from Sumitomo Mitsui Banking Corporation in line with theacquisition of the above 2 properties. As a result, unitholders’ capital at the end of the fiscal period under review stands
at 12,713 million yen, the total number of investment units issued and outstanding at 120,500 units, and the totalinterest-bearing liabilities at 14,000 million yen. Out of the interest-bearing liabilities, short-term loans of 1,000 million
yen and long-term loans of 6,000 million yen will be due for repayment on March 21, 2017.
As of the end of the fiscal period under review, the ratio of interest-bearing liabilities (loan amount) to total assets－ 3 －This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(hereinafter, “LTV”) is 50.2%.
(d) Overview of Business Performance and Distributions
As a result of the management described above, business performance in the fiscal period under review was operating
revenue of 771 million yen, operating income of 342 million yen, ordinary income of 282 million yen and net income of
281 million yen.
With respect to cash distributions, the Investment Corporation determined to distribute the whole unappropriatedretained earnings (except for the portion of less than one yen per unit) to be eligible for special provisions of the tax
system on investment corporations (Article 67-15 of the Act on Special Measures Concerning Taxation (Law No. 26 of
1957, including subsequent revisions; hereinafter the “Special Taxation Measures Law”)), that allows the Investment
Corporation to deduct the amount of profit distribution from its taxable income. Accordingly, distribution per unit for theperiod was 2,340 yen.
② Outlook for the Next Fiscal Period(a) Investment Environment
The aging of Japan has outpaced all other developed nations and the elderly ratio, especially elderly households withpersons aged 65 or over living alone, is expected to grow going forward.
According to “Population Projections for Japan (January 2012)” by National Institute of Population and Social Security
Research, the ratio of 65 years or older to the total population was 23.0% in 2010, but the figure is expected to rise to30.3% in 2025 and 33.4% in 2035. Furthermore, according to “Household Projections for Japan (nationwide) (January2013)” by National Institute of Population and Social Security Research, the number of elderly single households was
4.98 million and the ratio of elderly single households to the total elderly households was 30.7% in 2010, but the figures
are expected to reach 7.01 million or 34.8% in 2025, and 7.62 million or 37.7% in 2035, respectively.
As explained above, while the number of elderly households and elderly single households is projected to increase, thepopulation which bears nursing care is on the decline, creating needs for providing outside nursing care services andmedical services for a certain percentage of elderly households.
Under such circumstances, “Housing Life Basic Plan (nationwide plan)” states a government policy of increasing the ratioof housing for the elderly to the elderly population aged 65 or over to 4% in 2025 from 2.1% in 2014.
In order to achieve the above policy goal, new supply of paid senior citizens’ home and service-outfitted housing for theelderly for at least 770,000 people in total will be needed.
Furthermore, the government has established guidelines (March 2015) for drawing a community healthcare vision in
prefectures. Prefectures have established a vision for community healthcare to adequately promote well-balanced
separation of medical functions and cooperation to suit the community, and promotes further separation of functions ofby newly implementing such vision in medical planning. Responding to this movement, hospitals are expected toadvance capital investment, such as newly building hospital wards to meet the separation of functions and changing
current wards to convalescent wards. Along with these, capital needs surrounding hospitals are projected to increase
going forward for making buildings earthquake-resistant, reconstructing buildings, etc.
Therefore, demand for healthcare facilities with a particular emphasis on the keywords “nursing care,” “medical service”
and “health,” which the Investment Corporation sets as acquisition targets, is believed to further expand in the future.
(b) Future Management Policy and Challenges to Address
With recognition of the above investment environment, the Investment Corporation aims to secure stable income andsteady growth of the portfolio while seeking to realize a society where all people can live vibrantly and with peace ofmind, and manages assets based on the following policies.
a. Asset management policy for existing properties
Healthcare facilities possess a unique property feature in which not only the specifications of location or buildings, but－ 4 －This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
also the operational capability of the operator and management stability have a large impact on its value as real estate.
When the Investment Corporation acquires a healthcare facility, we aim to secure stable income for a medium- to longterm by, in principle, concluding a long-term lease agreement with fixed rent with the operator that operates thehealthcare facility.
The Investment Corporation conducts due diligence on the business feasibility of the facility, including the management
and financial conditions of operators, along with real estate due diligence, in order to secure stable income over the
medium- to long-term; and also implements continuous monitoring even after the acquisition.
b. New property acquisition policy
The Investment Corporation may utilize the sponsors’ comprehensive capabilities, including professional know-how andbroad customer base, first refusal rights provided in the support agreements, based on the support agreements which
the Asset Management Company has concluded with 13 sponsor companies and such.
Furthermore, the Asset Management Company may, for the purpose of making flexible property acquisition, request
sponsors, etc. to temporarily own a property (warehousing) with a precondition that it be transferred to the Investment
Corporation.
The Investment Corporation aims to maximize unitholder value by best utilizing the extensive network and warehousing
function possessed by the sponsors, etc. and securing stable property acquisition opportunities as mentioned above.
c. Financial policy
The Investment Corporation procures funds considering trends of the financial markets to build a stable financial basefor securing stable income over the medium- to long-term and maximizing unitholder value.
With the aim of achieving long-term, stable growth, equity financing will be carried out flexibly, taking into consideration
a multitude of factors including the timing of the acquisition of newly-acquired real estate-related assets and thepossibility of utilizing the sponsor’s warehousing capabilities, LTV, the timing for the repayment of interest-bearing
liabilities and the period remaining until repayment, as well as market conditions, while also considering the dilution of
the rights of existing unitholders and the resulting decline, etc. in the trading price of investment units.
As to debt financing, stable and flexible leverage control will be implemented by diversifying repayment due dates andsetting upper limit of LTV at 65% (may, however, exceed 65% temporarily). In addition, stable bank formation will beestablished by receiving financial advice from Sumitomo Mitsui Banking Corporation, one of the sponsors, based on thesponsor support agreement concluded between the bank and the Asset Management Company.
(c) Significant Subsequent Events
Not applicable.
(d) Management Status Outlook
The following management status is expected for the fiscal period ending January 2017 (from August 1, 2016 to January
31, 2017) and the fiscal period ending July 2017 (from February 1, 2017 to July 31, 2017). For the assumptions underlying
this outlook, please see “Assumptions Underlying Management Status Outlook for Fiscal Period Ending January 2017 andFiscal Period Ending July 2017” on page 7.
Fiscal period ending January 2017 (from August 1, 2016 to January 31, 2017)
Operating revenue
Operating income

784 million yen
344 million yen

Ordinary income
Net income

285 million yen
284 million yen

Distribution per unit (excluding distribution
in excess of earnings)
Distribution in excess of earnings per unit
－ 5 －2,360 yen
0 yenThis translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Fiscal period ending July 2017 (from February 1, 2017 to July 31, 2017)
Operating revenue
784 million yen
Operating income
Ordinary income

348 million yen
279 million yen

Net income
Distribution per unit (excluding distribution

278 million yen
2,310 yen

in excess of earnings)
Distribution in excess of earnings per unit

0 yen

(Note) As to the forecast figures above, actual operating revenue, operating income, ordinary income, net income, distribution per unit
(excluding distributions in excess of earnings) and distribution in excess of earnings per unit may differ as a result of
discrepancies from assumptions occurred due to additional acquisition or sale of real estate, etc., change in the real estatemarket, etc., fluctuation of interest rates, changes in other situations surrounding the Investment Corporation in the future andother factors. In addition, the forecast is not a guarantee of the amount of distribution or distribution in excess of earnings.

－ 6 －This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Assumptions Underlying Management Status Outlook for Fiscal Period Ending January 2017 and Fiscal Period Ending July 2017
Item
Calculation period

Assets undermanagement

Operatingrevenue

OperatingexpensesNon-operating
expenses

Loans

Investment units

Distribution per unit

Assumptions
・Fiscal period ending January 2017 (4th fiscal period): from August 1, 2016 to January 31, 2017 (184days)
・Fiscal period ending July 2017 (5th fiscal period): from February 1, 2017 to July 31, 2017 (181 days)
・The assumption is that the Investment Corporation will continue to own the 18 properties (hereinafter,
the “Acquired Assets”) it owns as of the date of this document and that no other new property
acquisition will be made.
・There may be changes due to acquisition of new properties, or sale of the Acquired Assets, etc. in the
future.
・Lease business revenue from the Acquired Assets is calculated based on the rent stated in the leaseagreements that have been concluded. The period-end occupancy rate of each property is expected tobe 100.0% for both fiscal periods ending January 2017 and July 2017.
・It is assumed that there will no gain or loss on sales of real estate.
・Rental business expenses, the major component of operating expense, are calculated based on the past
figures reflecting factors for change in expenses.
・Operating income (loss) from real estate leasing (excluding gain on sale of real estate, etc.) after
subtracting rental business expenses (including depreciation and amortization) is assumed to be 495
million yen for the fiscal period ending January 2017 and 493 million yen for the fiscal period ending
July 2017.
・Outsourcing expenses are assumed to be 11 million yen for the fiscal period ending January 2017 and11 million yen for the fiscal period ending July 2017.
・Property tax (real property tax and urban planning tax) is assumed to be 49 million yen for the fiscal
period ending January 2017 and 51 million yen for the fiscal period ending July 2017.
・In general, real property tax and urban planning tax are calculated by period distribution with previous
owners and settled at the time of acquisition in purchasing and selling real estate, but as theInvestment Corporation incudes this settlement money in acquisition cost, they are not recoded as
expenses in the year of acquisition. Therefore, real property tax and urban planning tax for the assets
acquired on March 30, 2016 will be recorded as expenses from the fiscal period ending July 2017.
・Depreciation and amortization is calculated by using the straight-line method and assumed to be 204
million yen for the fiscal period ending January 2017 and 205 million yen for the fiscal period ending
July 2017.
・Repair expenses are assumed to be 14 million yen for the fiscal period ending January 2017 and 13
million yen for the fiscal period ending July 2017, based on the medium-/long-term repair plans drawn
by the Asset Management Company. However, as repair expenses may increase or additional repair
may be required due to unpredictable reasons, actual expanses may differ significantly from theforecast.
・Interest expenses and other borrowing related expenses are assumed to be 59 million yen for the fiscal
period ending January 2017 and 69 million yen for the fiscal period ending July 2017.
・As of the end of fiscal period ending July 2016, the Investment Corporation has balance of loans
outstanding of 14,000 million yen. As to 7,000 million yen due for repayment in the fiscal period ending
July 2017, the entire amount is assumed to be refinanced, and it is assumed that there will be nochange in the balance of loans outstanding at the end of the fiscal period ending January 2017 and thefiscal period ending July 2017.
・The assumption is the total number of investment units issued and outstanding as of the date of thisdocument, which is 120,500 units. And the assumption is that there will be no change in the number ofinvestment units due to issuance of new investment units, etc. through to the end of the fiscal period
ending July 2017.
・Distribution per unit (excluding distribution in excess of earnings) is calculated with the assumption
being the cash distribution policy provided in the Articles of Incorporation of the Investment
Corporation.
・Distribution per unit (excluding distribution in excess of earnings) may vary due to various factors,
including fluctuation in rent revenue accompanying change in assets under management, change intenants, etc. or incurrence of unexpected repairs.

Distribution per unit in・No distribution in excess of earnings is scheduled at this point in time.
excess of earnings
・The assumption is that there will be no revision of laws and regulations, tax systems, accounting
standards, securities listing regulations, rules of The Investment Trusts Association, Japan, etc. that will
impact the forecast figures above.
Other
・The assumption is that there will be no unforeseen serious change in general economic trends, realestate market conditions, etc.
－ 7 －This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(3) Investment Risks
Disclosure is omitted because there is no significant change from the “Investment Risks” in the securities registration
statement.

－ 8 －This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

3.

Financial Statements(1) Balance Sheet(Unit: thousands of yen)Previous fiscal period(As of Jan. 31, 2016)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Prepaid expenses
Deferred tax assets
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Intangible assets
SoftwareTotal intangible assets
Investments and other assets
Lease and guarantee deposits in trust
Long-term prepaid expenses
Total investments and other assets
Total non-current assets
Deferred assets
Investment unit issuance expenses
Total deferred assets
Total assets－ 9 －Current fiscal period(As of Jul. 31, 2016)

1,931,666
27,92054,82113
2,014,421

1,759,763
36,83952,25614
1,848,873

14,143,133(357,277)
13,785,856
49,897(1,022)
48,875
1,669
(22)
1,647
10,944,899
24,781,278

14,611,952(558,904)
14,053,048
49,897(1,575)48,322
1,814
(89)
1,725
11,891,121
25,994,217

7,532
7,532

6,622
6,622

10,00038,23548,23524,837,045

10,00019,51529,51526,030,355

23,02823,02826,874,495

17,501
17,501
27,896,730

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(Unit: thousands of yen)Previous fiscal period(As of Jan. 31, 2016)
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Total current liabilities
Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets－ 10 －

Current fiscal period(As of Jul. 31, 2016)

4,431
23,86091,819857
1,326
114,11072
236,480

27,6581,000,000
6,000,000
28,33989,536879
1,308
122,03172
7,269,826

13,000,000
595,400
13,595,400
13,831,880

7,000,000
631,259
7,631,259
14,901,086

12,713,600

12,713,600

329,015
329,015
13,042,615*1
13,042,615
26,874,495

282,044
282,044
12,995,644*1
12,995,644
27,896,730

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(2) Statement of Income(Unit: thousands of yen)Previous fiscal period
From: Aug. 1, 2015
To: Jan. 31, 2016
Operating revenue
Lease business revenue
Other lease business revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Property tax
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Insurance income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Investment unit issuance expenses
Borrowing related expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

*1
*1

*1

－ 11 －

Current fiscal period
From: Feb. 1, 2016
To: Jul. 31, 2016

740,945
4,843
745,789*1

222,279
76,006
1,335
11,3093,000
11,74536,210361,887
383,901*1*1

767,051
4,834
771,885
283,346
73,732
1,375
11,1593,000
12,75244,267
429,633
342,252

132
6,608
52
6,793

171
20
191

26,425
5,526
28,89560,847
329,847
329,847884
5
889
328,957
57
329,015

25,1405,526
28,87759,544
282,899282,899905(0)
904
281,99450
282,044This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(3) Statement of Unitholders’ Equity
Previous fiscal period (from August 1, 2015 to January 31, 2016)(Unit: thousands of yen)
Unitholders’ equity
SurplusTotal
unitholders’ equity

Total
net assets

Unitholders’ capital

Unappropriatedretained earnings(undisposed loss)

12,713,600

73,56273,562

12,787,162

12,787,162

Dividends of surplus(73,505)(73,505)(73,505)(73,505)

Net income

328,957

328,957

328,957

328,957－

255,452

255,452

255,452

255,452

12,713,600

329,015

329,015

13,042,615

13,042,615

Balance at beginning of current period

Total
surplus

Changes of items during period

Total changes of items during period
Balance at end of current period*1Current fiscal period (from February 1, 2016 to July 31, 2016)(Unit: thousands of yen)
Unitholders’ equity
SurplusTotal
unitholders’ equity

Total
net assets

Unitholders’ capital

Unappropriatedretained earnings(undisposed loss)

12,713,600

329,015

329,015

13,042,615

13,042,615

Dividends of surplus(328,965)(328,965)(328,965)(328,965)

Net income

281,994

281,994

281,994

281,994－(46,970)(46,970)(46,970)(46,970)

12,713,600

282,044

282,044

12,995,644

12,995,644

Balance at beginning of current period

Total
surplus

Changes of items during period

Total changes of items during period
Balance at end of current period*1－ 12 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(4) Statement of Cash Distributions(Unit: yen)Previous fiscal period
From: Aug. 1, 2015
To: Jan. 31, 2016
I.

Unappropriated retained earnings

II. Amount of distributions

329,015,203

282,044,453

328,965,000

281,970,000[Amount of distribution per investment unit]
III. Retained earnings carried forward
In

Method of calculation of amount of distributions

accordance

Current fiscal period
From: Feb. 1, 2016
To: Jul. 31, 2016

with

[2,730][2,340]50,20374,453

the

cash

In

accordance

with

the

cash

distribution policy described in
Article 36, Paragraph 1 of its Articles

distribution policy described in
Article 36, Paragraph 1 of its Articles

of Incorporation, the Investment
Corporation determines that theof Incorporation, the Investment
Corporation determines that theamount of distribution shall exceed
the amount equivalent to 90% of its

amount of distribution shall exceed
the amount equivalent to 90% of its

distributable profit as stipulated in
Article 67-15 of the Special Taxation

distributable profit as stipulated in
Article 67-15 of the Special Taxation

Measures Law, and shall be up to its
profits as the maximum amount.

Measures Law, and shall be up to its
profits as the maximum amount.

Following this policy, the Investment
Corporation has decided that it shall

Following this policy, the Investment
Corporation has decided that it shall

distribute ¥328,965,000, which is the
maximum integral multiple to

distribute ¥281,970,000, which is the
maximum integral multiple to120,500 investment units issued andoutstanding as the distribution of120,500 investment units issued andoutstanding as the distribution of

earnings.
The
Investment
Corporation has decided not to makeearnings.
The
Investment
Corporation has decided not to makecash distribution in excess ofearnings defined in Article 36,

cash distribution in excess ofearnings defined in Article 36,

Paragraph 2 of the Investment
Corporation’s
Articlesof

Paragraph 2 of the Investment
Corporation’s
Articlesof

Incorporation.

Incorporation.

－ 13 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(5) Statement of Cash Flows(Unit: thousands of yen)Previous fiscal period
From: Aug. 1, 2015
To: Jan. 31, 2016
Cash flows from operating activities
Income before income taxes
Depreciation
Borrowing related expenses
Investment unit issuance expenses
Interest income
Interest expenses
Decrease (increase) in consumption taxes refund receivable
Decrease (increase) in prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Increase (decrease) in deposits received
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Purchase of intangible assets
Proceeds from tenant leasehold and security deposits
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase in short-term loans payable
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period－ 14 －

Current fiscal period
From: Feb. 1, 2016
To: Jul. 31, 2016

329,847
196,398
28,8955,526(132)
26,42525,752
4,794
4,088(2,101)
1,326
25,152(901)(15,737)
629,334132(26,281)(1,147)602,037

282,899
203,156
27,4085,526(171)
25,140(6,124)
23,227
11,113(18)(2,181)
7,920
577,896171(25,241)(883)
551,942(45,470)(1,571)(47,041)(1,423,944)
35,859(1,388,085)(72,690)(72,690)482,306
1,477,280*1
1,959,586

1,000,000(326,840)
673,159(162,983)
1,959,586*1
1,796,603

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(6) Notes on the Going Concern Assumption
Not applicable.
(7) Notes on Matters Concerning Significant Accounting Policies
1. Method of depreciation of (1) Property, plant and equipment
non-current assets
The straight-line method is adopted.
The useful life of principal property, plant and equipment is as follows:
Buildings in trust
7-60 years
Structures in trust
38-52 years
Tools, furniture and fixtures in trust 6-15 years(2) Intangible assets
The straight-line method is adopted.
2. Accounting for deferred
Investment unit issuance expenses
assetsDepreciated evenly over 3 years.
3. Standards for
Accounting for fixed asset tax, etc.
revenue and expense
For fixed asset tax, city planning tax, depreciable asset tax, etc. on real estate, etc.
recognition
held, the accounting is that, of the tax amount assessed and determined, the amountcorresponding to the concerned calculation period is expensed as expenses related torent business.

4.

Method of Hedge
Accounting

5.

Scope of funds in thestatement of cash flows(cash and cash
equivalents)

6.

Other significant mattersserving as the basis for
preparation offinancial statements

In connection with the acquisition of real estate including trust beneficiary interests inreal estate, the amount equivalent to real property tax, etc. for the initial fiscal year,
which was settled with the seller, is not recorded as expenses but included in the costof acquisition of the concerned real estate, etc. The amount equivalent to real
property tax, etc. included in the acquisition of real estate, etc. was none (noneapplicable) in the previous fiscal period and was 3,832 thousand yen in the fiscal
period under review.
(1) Hedge accounting approach
Special treatment is applied for interest rate swaps.
(2) Hedging instruments and hedge items
Hedging instruments：Interest rate swap transaction
Hedge items：Interest on loans(3) Hedging policy
The Investment Corporation conducts interest rate swap transactions for hedging
risks provided in the Articles of Incorporation of the Investment Corporation,
pursuant to the risk management basic policy.
(4) Method of assessing hedge effectivenessThe assessment of hedge effectiveness for interest rate swap transactions isomitted since they satisfy the requirements for special treatment.
The funds (cash and cash equivalents) in the statement of cash flows comprise cash on
hand and cash in trust, demand deposits and deposits in trust, and short-term
investments with a maturity of three months or less from the date of acquisition thatare readily convertible to cash and that are subject to an insignificant risk of changes
in value.
(1) Accounting for beneficiary interest in trust for real estate, etc.
Concerning beneficiary interest in trust for real estate, etc. owned, all accounts ofassets and liabilities within trust assets as well as all accounts of revenue andexpenses from the trust assets are recognized in the relevant account item of thebalance sheet and the statement of income.
The following material items of the trust assets recognized in the relevant accountitem are separately listed on the balance sheet.
① Cash and deposits in trust② Buildings in trust; structures in trust; tools, furniture and fixtures in trust; landin trust(2) Accounting for consumption tax, etc.
Consumption tax and local consumption tax are excluded from transaction
amounts.
Non-deductible consumption taxes on acquisition of assets is included in the costof acquisition of each asset.

－ 15 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(8) Notes to the Financial Statements[Notes to the Balance Sheet]*1 Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Unit: thousands of yen)Previous fiscal period(As of Jan. 31, 2016)

Current fiscal period(As of Jul. 31, 2016)

50,00050,000[Notes to the Statement of Income]*1 Breakdown of operating income (loss) from real estate leasing(Unit: thousands of yen)Previous fiscal period
From: Aug. 1, 2015
To: Jan. 31, 2016

Current fiscal period
From: Feb. 1, 2016
To: Jul. 31, 2016

A. Operating revenue from real estate leasing
Revenue related to rent business
Rent revenue
Other revenue related to rent business

740,945

767,051

4,843

4,834

745,789

771,885

─

49,594

Outsourcing expenses
Repair expenses

10,5198,414

10,901
11,912

Insurance expenses
Depreciation

1,449
195,488

1,742
202,246

6,407

6,948

Total operating expenses from real estate leasing

222,279

283,346

C. Operating income (loss) from real estate leasing [A－B]

523,509488,539

Other revenue
Total operating revenue from real estate leasing
B. Operating expenses from real estate leasing
Expenses related to rent business
Property tax

Other expenses related to rent business[Notes to the Statement of Unitholders’ Equity]*1 Total number of investment units authorized and total number of investment units issued and outstanding
Previous fiscal period
Current fiscal period
From: Aug. 1, 2015
From: Feb. 1, 2016
To: Jan. 31, 2016
To: Jul. 31, 2016
Total number of investment units authorized
Total number of investment units issued and outstanding

10,000,000 units

10,000,000 units

120,500 units

120,500 units[Notes to the Statement of Cash Flows]*1 Reconciliation of cash and cash equivalents at end of period to the amount of balance sheet items(Unit: thousands of yen)Previous fiscal period
From: Aug. 1, 2015
To: Jan. 31, 2016

Current fiscal period
From: Feb. 1, 2016
To: Jul. 31, 2016

Cash and deposits
Cash and deposits in trust

1,931,666
27,9201,759,763
36,839Cash and cash equivalents

1,959,586

1,796,603－ 16 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
[Notes on Operating Leases Transactions]Non-cancellable operating leases (as lessor)(Unit: thousands of yen)Previous fiscal period
As of Jan. 31, 2016

Current fiscal period
As of Jul. 31, 2016

Not later than 1 year

1,455,995

1,527,713

Later than 1 year

14,525,673

15,959,893

Total

15,981,668

17,487,606[Notes on Financial Instruments]
1. Matters concerning status of financial instruments(1) Policy for handling financial instruments
Pursuant to the policy of conducting stable and sound financial management, the Investment Corporation procures
funds for asset acquisition, repayment of loans, etc. by means of loans from financial institutions or issuance of new
investment units, etc. As to fund procurement through loans, the Investment Corporation pays attention to extending
loan periods, fixing interest rates, diversifying repayment dates and such to secure financial stability and avoid a risk ofinterest rate rise in the future.
Derivative transactions shall be limited to those invested for the purpose of hedging the risk of fluctuations in interest
rates on loans, etc. and other risks.
(2) Description of financial instruments and associated risks, and risk management system
Funds from loans are used primarily for acquisition of trust beneficiary interests in real estate.
Although loans are exposed to liquidity risks on the repayment date, impact of the market interest rate rise on the
management of the Investment Corporation is limited by appropriately managing the ratio of interest-bearing
liabilities, and such risks are controlled by diversifying repayment dates.
Although loans with floating interest rates are exposed to interest rate fluctuation risks, the ratios of loan balanceswith floating rates and fixed rates against the entire loans are adjusted according to the financing environment.
Furthermore, derivative transactions (interest rate swap transactions) have been used for part of loans with floating
rates to avoid interest fluctuation risks and to fix interest payment. Execution/management of derivative transactions
carried out for the purpose of hedging interest rate fluctuation risks is conducted pursuant to provisions that stipulate
the basic policy of risk management.
Although tenant leasehold and security deposits are deposits from tenants and are exposed to liquidity risks at thetime of refunding upon tenants’ move-outs, the Investment Corporation controls liquidity risks by maintaining liquidity
in hand, etc.
For deposits, such risks are controlled by setting lower limit to the credit rating of financial institutions at which
deposits are made (excluding deposits for settlement), etc.
(3) Supplementary explanation to matters concerning fair value, etc. of financial instruments
The fair value of financial instruments, aside from values based on market price, includes values based on reasonablecalculation when no market price is available. Certain assumptions are adopted in the calculation of the concernedvalues. Accordingly, there may be cases where the concerned values will vary when different assumptions are
adopted.

－ 17 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
2.

Matters concerning fair value, etc. of financial instruments
Carrying amount, fair value and difference between the two were as follows. The financial instruments whose fair values
are deemed extremely difficult to determine are excluded from the table below. (Please refer to (Note 2).)Previous fiscal period (from August 1, 2015 to January 31, 2016)(Unit: thousands of yen)
Carrying amount(1) Cash and deposits

1,931,666(2) Cash and deposits in trust
Total assets(3) Long-term loans payable
Total liabilities(4) Derivatives

Amount ofdifference

Fair value
1,931,666

─27,92027,920─

1,959,586

1,959,586

─

13,000,000

12,993,564(6,435)13,000,000

12,993,564(6,435)───Current fiscal period (from February 1, 2016 to July 31, 2016)(Unit: thousands of yen)
Carrying amount(1) Cash and deposits(2) Cash and deposits in trust
Total assets

Amount ofdifference

Fair value

1,759,763

1,759,763

─

36,83936,839─

1,796,603

1,796,603

─(3) Short-term loans payable

1,000,000

1,000,000

─(4) Current portion of long-term loans payable

6,000,000

6,000,000

─(5) Long-term loans payable

7,000,000

7,006,662

6,662

14,000,000

14,006,662

6,662

─

─

─

Total liabilities(6) Derivatives(Note 1) Method of calculation of the fair value of financial instruments(1) Cash and deposits; (2) Cash and deposits in trust; (3) Short-term loans payable
Because these are settled in a short period of time, the fair value is approximately the same as the book value and thus stated at thatbook value.
(4) Current portion of long-term loans payable; (5) Long-term loans payable
For those with floating interest rates that reflect market interest rates within a short period of time, the book value is deemed areasonable approximation of the fair value as there are no significant changes in the Investment Corporation’s credit standing after
borrowing; therefore, the book value is used as the fair value equivalent. Those with fixed interest rates are calculated by discounting thesum of principal and interest (*) at a reasonable rate estimated for a similar loan that is made corresponding to the remaining period.
(*)For long-term loans with floating interest rate to which special treatment for interest rate swaps is applied (please refer to “Derivative
Transactions” below), the sum of principal and interest under the interest rates after the interest rate swaps are indicated.
(6) Derivative transactions
Please refer to “Notes on Derivative Transactions” below.
(Note 2) Financial instruments for which estimation of fair value is recognized to be difficult.
(Unit: thousands of yen)

Tenant leasehold and security deposits

Previous fiscal period(As of Jan. 31, 2016)

Current fiscal period(As of Jul. 31, 2016)

595,400

631,259

Tenant leasehold and security deposits are not subject to valuation at fair value, because a reasonable estimation of cash flows is recognized to be
extremely difficult due to there being no market price and difficulty of calculating the actual deposit period from when lessees move in to when
they move out.

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(Note 3) Amount of redemption of monetary claims scheduled to be due after the account closing datePrevious fiscal period (As of January 31, 2016)(Unit: thousands of yen)
Not later than 1 year
Cash and deposits

1,931,666

Cash and deposits in trust

27,920Total

1,959,586

Current fiscal period (As of July 31, 2016)(Unit: thousands of yen)
Not later than 1 year
Cash and deposits

1,759,763

Cash and deposits in trust

36,839Total

1,796,603(Note 4) Amount of repayment of loans scheduled to be due after the account closing datePrevious fiscal period (As of January 31, 2016)(Unit: thousands of yen)
Later than 4 years
and not
Later than 5 years
later than 5 years

Not later than 1 year

Later than 1 year
and not
later than 2 years

Later than 2 years
and not
later than 3 years

Later than 3 years
and not
later than 4 years

Long-termloans payable―

6,000,000

7,000,000

―

―

―

Total

―

6,000,000

7,000,000―――

Not later than 1 year

Later than 1 year
and not
later than 2 years

Later than 2 years
and not
later than 3 years

Later than 3 years
and not
later than 4 years

Short-termloans payable

1,000,000

―

―

―

―

―

Long-termloans payable

6,000,000

7,000,000

―

―

―

―

Total

7,000,000

7,000,000

―

―

―

―

Current fiscal period (As of July 31, 2017)[Notes on Securities]
Previous fiscal period (as of January 31, 2016)
Not applicable.
Current fiscal period (as of July 31, 2016)
Not applicable.
[Notes on Derivative Transactions]1.

Derivative transactions to which hedge accounting is not applied
Previous fiscal period (as of January 31, 2016)
Not applicable.
Current fiscal period (as of July 31, 2016)
Not applicable.

－ 19 －(Unit: thousands of yen)
Later than 4 years
and not
Later than 5 years
later than 5 years

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
2.

Derivative transactions to which hedge accounting is applied
Previous fiscal period (as of January 31, 2016)(Unit: thousands of yen)Hedge
accounting
approachSpecialtreatment forinterest rate
swaps

Type, etc. of
derivativetransaction
Interest rate swap
transaction
Floating receivable;
fixed payableMainhedgeditem
Long-term
loans
payableContract amount, etc.
Due after one
year
7,000,000

7,000,000

Fair value

Calculation
method forthe fair value(Note)―(Note) Since those with special treatment of interest rate swaps are treated integrally with hedged long-term loans payable, the market values ofsuch are shown as included in the market value in “(3) Long-term loans payable” in “[Notes on Financial Instruments], 2. Mattersconcerning fair value, etc. of financial instrument” above.

Current fiscal period (as of July 31, 2016)(Unit: thousands of yen)Hedge
accounting
approachSpecialtreatment forinterest rate
swaps

Type, etc. of
derivativetransaction
Interest rate swap
transaction
Floating receivable;
fixed payableMainhedgeditem
Long-term
loans
payableContract amount, etc.
Due after one
year
7,000,000

7,000,000

Fair value

Calculation
method forthe fair value(Note)―(Note) Since those with special treatment of interest rate swaps are treated integrally with hedged long-term loans payable, the market values ofsuch are shown as included in the market value in “(5) Long-term loans payable” in “[Notes on Financial Instruments], 2. Mattersconcerning fair value, etc. of financial instrument” above.

[Notes on Retirement Benefits]
Previous fiscal period (as of January 31, 2016)
Not applicable.
Current fiscal period (as of July 31, 2016)
Not applicable.
[Notes on Tax-Effect Accounting]
1. Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities(Unit: thousands of yen)Previous fiscal period
As of Jan. 31, 2016
Deferred tax assets
Non-deductible accrued enterprise tax
Total deferred tax assets
Net deferred tax assets
2.

Current fiscal period
As of Jul. 31, 2016
13

14

13

14

13

14

Breakdown of major components that caused any significant differences between the statutory tax rate and the effective
income tax rate after application of tax-effect accounting(Unit: %)Previous fiscal period
As of Jan. 31, 2016
Statutory tax rate
[Adjustments]
Deductible distributions payable
Other
Effective income tax rate
after application of tax-effect accounting[Notes on Share of Profit (Loss) of Entities Accounted for Using Equity Method, etc.]
Previous fiscal period (as of January 31, 2016)
Not applicable.
－ 20 －

Current fiscal period
As of Jul. 31, 2016

32.31

32.31

(32.22)0.18(32.20)
0.21

0.27

0.32

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Current fiscal period (as of July 31, 2016)
Not applicable.
[Notes on Related-Party Transactions]
1.

Parent company, major corporate unitholder, etc.
Previous fiscal period (from August 1, 2015 to January 31, 2016)
Not applicable.
Current fiscal period (from February 1, 2016 to July 31, 2016)
Not applicable.

2.

Affiliated company, etc.
Previous fiscal period (from August 1, 2015 to January 31, 2016)
Not applicable.
Current fiscal period (from February 1, 2016 to July 31, 2016)
Not applicable.

3.

Fellow subsidiary, etc.
Previous fiscal period (from August 1, 2015 to January 31, 2016)
Not applicable.
Current fiscal period (from February 1, 2016 to July 31, 2016)
Not applicable.

4.

Director, major individual unitholder, etc.
Previous fiscal period (from August 1, 2015 to January 31, 2016)

Percentage
Relationship
Capital stockof voting
Balance atTransaction
rights, etc.
Name ofor
Description ofend ofConcurrent
Account
amountheld by (in)company,
investments
Description ofbusiness or
periodClassification
Address
holding ofBusinessitem(thousandthetransaction
etc. orin capital
occupation(thousanddirector’s relationshipyen)
Investment
person(thousandyen)
position, etc.
Corporation
yen)(%)
Executive
Payment of
Executive Director of the
Director of theasset
Investment Corporation
Investment
Director, ormanagement
and President & CEO of
Corporation
Seiji
close
76,006 Accrued
fee to the――the Asset Management
and President―
82,087
relative of Yoshioka(Note) expenses
Asset
Company& CEO of thedirector
Management
Asset
Company
Management
Company

Of the amounts above, the transaction amount does not include consumption tax.

(Note) Terms and conditions of transactions and decision-making approach to such, etc.
1. Terms and conditions of transactions are decided taking into account the actual market value.
2. The transaction is one that was conducted by Seiji Yoshioka as President and CEO of a third party (Healthcare Asset Management Co., Ltd.),
and the amount of the asset management fee is based on the terms and conditions provided in the Articles of Incorporation of theInvestment Corporation.

－ 21 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Current fiscal period (from February 1, 2016 to July 31, 2016)

Relationship
Percentage
Capital stockof voting
Balance atTransaction
Name ofor
Description of rights, etc. Concurrent
end ofAccount
amountcompany,
investments
Description ofheld by (in) holding ofbusiness or
periodClassification
Address
Businessitem(thousandtransaction
etc. orintheoccupation(thousanddirector’s relationshipyen)
personcapital(thous
Investment position, etc.
yen)
and yen)
Corporation(%)
Executive
Payment of
Director of the
Executive Director of theasset
Investment
Investment Corporation
Director, ormanagement
Corporation
80,422Seiji
and President & CEO ofclose
Accruedfee to the――and President―(Note 1)
79,630the Asset Management
relative of Yoshioka
expensesAsset& CEO of the(Note 2)Company
director
Management
Asset
Company
Management
Company

Of the amounts above, the transaction amount does not include consumption tax.

(Note 1) Under “Description of transaction,” the amount of transaction for the payment of asset management fee to the Asset Management
Company includes the property acquisition incentive portion included in the book value of individual real estate, etc. in the amount of
6,690 thousand yen.
(Note 2) Terms and conditions of transactions and decision-making approach to such, etc.
1. Terms and conditions of transactions are decided taking into account the actual market value.
2. The transaction is one that was conducted by Seiji Yoshioka as President and CEO of a third party (Healthcare Asset Management Co., Ltd.),
and the amount of the asset management fee is based on the terms and conditions provided in the Articles of Incorporation of theInvestment Corporation.

[Notes on Asset Retirement Obligations]
Previous fiscal period (as of January 31, 2016)
Not applicable.
Current fiscal period (as of July 31, 2016)
Not applicable.
[Notes on Investment and Rental Properties]
The Investment Corporation owns paid senior citizens’ home and service-outfitted housing for the elderly (18 properties in total)
primarily in the Three Major Metropolitan Areas and Core Cities. The carrying amount, amount of increase (decrease) during theperiod and fair value of these investment and rental properties are as follows:(Unit: thousands of yen)Previous fiscal period
From: Aug. 1, 2015
To: Jan. 31, 2016

Current fiscal period
From: Feb. 1, 2016
To: Jul. 31, 2016

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

24,961,522

24,781,278(180,243)

1,212,938

24,781,278

25,994,217

25,593,000

27,147,000(Note 1) “Carrying amount” is the amount of the cost of acquisition, less accumulated depreciation.
(Note 2) The decrease amount in the amount of increase (decrease) during period for the previous fiscal period is mainly attributable todepreciation and amortization (195,488 thousand yen). Out of the amount of increase (decrease) during period for the current fiscal
period, the amount of increase is mainly attributable to the acquisition of 2 properties (1,338,000 thousand yen) and the amount ofdecrease is mainly attributable to depreciation and amortization (202,246 thousand yen).
(Note 3) “Fair value at end of period” is the appraisal value or investigation value by an outside real estate appraiser.

The income (loss) concerning investment and rental properties in 3rd fiscal period is as stated in “Notes to the Statement of
Income” earlier in this document.
[Notes on Segment Information]
1.

Segment information
Segment information is omitted because Healthcare & Medical Investment Corporation operates a single segment, which is－ 22 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
the real estate leasing business.
2.

Related information
Previous fiscal period (from August 1, 2015 to January 31, 2016)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single products andservices category are in excess of 90% of operating revenue on the statement of income.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about major customers
Information on net sales to a single external customer is omitted because consent has not been obtained from thetenant.
Current fiscal period (from February 1, 2016 to July 31, 2016)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single products andservices category are in excess of 90% of operating revenue on the statement of income.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about major customers
Information on net sales to a single external customer is omitted because consent has not been obtained from thetenant.

[Notes on Per Unit Information]
Previous fiscal period
From: Aug. 1, 2015
To: Jan. 31, 2016

Current fiscal period
From: Feb. 1, 2016
To: Jul. 31, 2016

Net assets per unit

108,237 yen

107,847 yen

Net income per unit

2,729 yen

2,340 yen

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

Previous fiscal period
From: Aug. 1, 2015
To: Jan. 31, 2016

Current fiscal period
From: Feb. 1, 2016
To: Jul. 31, 2016

328,957

281,994-‐

Net income attributable to common investment units (thousands of yen)

328,957

281,994

Average number of investment units during period (units)

120,500

120,500

Net income (thousands of yen)Amount not attributable to common unitholders (thousands of yen)

－ 23 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
[Notes on Significant Subsequent Events]
Not applicable.
(9) Changes in Total Number of Investment Units Issued and Outstanding
There is no change to the total number of investment units issued and outstanding and to unitholders’ capital since no capitalincrease, etc. was conducted during the fiscal period under review. The following are the changes in unitholders’ capital andtotal number of investment units issued and outstanding since the establishment of the Investment Corporation.
Total number ofinvestment units

Unitholders’ capitalissued and outstanding(units)(thousands of yen)

Date

Description

December 9, 2014

Establishment throughprivate placement

2,000

2,000

200

200

(Note 1)March 18, 2015

Capital increase throughpublic offering

106,500

108,500

11,246

11,446(Note 2)

12,000120,500

1,267

12,713(Note 3)

Increase

April 21, 2015

Capital increase throughthird-party allotment

Balance

Increase

Remarks

Balance(Note 1) The Investment Corporation was established with issue price of 100,000 yen.
(Note 2) New investment units were issued through public offering with issue price of 110,000 yen (paid-in amount of 105,600 yen) per unit.
(Note 3) New investment units were issued through third-party allotment in line with public offering, with paid-in amount of 105,600 yen per unit.

－ 24 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

4.

Changes in Directors(1) Changes in Directors of Healthcare & Medical Investment Corporation
Not applicable.
Changes in Officers and Directors will be announced at the time of decision.
(2) Changes in Directors of the Asset Management Company
Not applicable.
Changes in Officers and Directors will be announced at the time of decision.

5.

Reference Information(1) Investment Status
Current fiscal period (as of Jul. 31, 2016)

Asset type
Real estate
trust
beneficiaryright

Total amount held(millions of yen)
(Note 1)

As a percentage of
total assets(%) (Note 2)

Three Major
Metropolitan Areas(Note 3)

19,22568.9

Core Cities (Note 4)

3,013

10.8

Other area (Note 5)

416

1.5

Three Major
Metropolitan Areas(Note 3)

3,338

12.0

Core Cities (Note 4)――

Other area (Note 5)

Asset use
Homes andfacilities forthe elderly

Area

Paid seniorcitizens’
homeServiceoutfitted
housing forthe elderly――

Group homes for the elderly withdementia――

Other facilities for the elderly――

Subtotal

25,99493.2

Medical service-related facilities, etc.

―

―

Other

―

―

25,994

93.2

Deposits and other assets

1,902

6.8

Total amount of assets

27,896

100.0

Total

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

－ 25 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(2) Investment Real Estate Properties➀ Acquisition prices, etc. of investment real estate properties and their shares of investment
Overview of real estate in trust for trust beneficiary rights that the Investment Corporations owns as of July 31, 2016 is asfollows.
Type ofspecified
asset

Area

Current fiscal period(as of Jul. 31, 2016)
Acquisition price
Share of investment Carrying amount Opinion of value at(millions of yen)(%) (Note 2)(millions of yen)end of period(Note 1)
(Note 3)(millions of yen)
(Note 4)

Property name

Bonsejour Chitose-funabashi

824

3.3

844

958

Bonsejour Hino

724

2.9

744

806

Bonsejour Musashi-shinjo

582

2.3

598

633

728

2.9

758

838

3,580

14.3

3,707

3,750

3,050

12.2

3,145

3,210

ASHEIM Hikarigaoka

1,385

5.5

1,432

1,540

ASHEIM Bunkyohakusan

1,430

5.7

1,464

1,590

GOOD TIME HOME Fudo-mae

1,740

7.0

1,773

1,910

Medical Rehabilitation Home
Bonsejour Hadanoshibusawa(Note 5)
SOMPO CARE La vie Re
Machidaonoji (Note 5)Tokyo
Metropolitan area SOMPO CARE La vie Re
Azamino (Note 5)

Real estate
trust
beneficiaryright
Kinki area

Chubu area

Core cities

Bonsejour Yotsugi

824

3.3

852

872

Subtotal

14,86759.4

15,320

16,107

1,950

7.8

2,040

2,160

1,930

7.7

2,057

2,130

1,200

4.8

1,281

1,320

514

2.1

543

550

Subtotal

5,594

22.4

5,922

6,160

Medical Rehabilitation Home
Bonsejour Komaki (Note 5)

1,270

5.1

1,320

1,430

AQUAMARINE
Nishinomiyahama
Sompo no ie S Awajiekimae(Note 5)
Sompo no ie S Kobekamisawa(Note 5)
Medical Home Bonsejour
Itami

1,270

5.1

1,320

1,430

SAWAYAKA Tachibanakan

Subtotal

1,520

6.1

1,576

1,580

SAWAYAKA Mekarikan

1,380

5.5

1,437

1,460

2,900

11.6

3,013

3,040

390

1.6

416

410

390

1.6

416

410

25,021

100.0

25,994

27,147

Subtotal
Other area

SAWAYAKA Tagawakan
Subtotal

Total (18 properties)(Note 1) ”Acquisition price” does not include acquisition-related expenses, property tax, urban planning tax, consumption tax and local
consumption tax.
(Note 2) ”Share of investment” refers to the acquisition price of each property as a percentage of the total acquisition price, and the figures arerounded to one decimal place.
(Note 3) ”Carrying amount” indicates book value after depreciation and amortization as of July 31, 2016.
(Note 4) ”Opinion of value at end of period” indicates amounts stated in the appraisal report with appraisal date of July 31, 2016, prepared byreal estate appraisers of Japan Real Estate Institute, the Tanizawa Sogo Appraisal Co., Ltd. and Rich Appraisal Institute Co., Ltd., basedon the Articles of Incorporation of the Investment Corporation and the rules set by the Investment Trusts Association, Japan.
(Note 5) As to “Property name,” “Bonsejour Hadanoshibusawa” has been changed to “Medical Rehabilitation Home Bonsejour
Hadanoshibusawa,” “RESTVILLA Machidaonoji“ to “SOMPO CARE La vie Re Machidaonoji,” “RESTVILLA Azamino” to “SOMPO CARE La
vie Re Azamino,” “C AMILLE Awajiekimae” to “Sompo no ie Awajiekimae,” “C AMILLE Kobekamisawa” to “Sompo no ie Kobekamisawa”
and “Medical Home Bonsejour Komaki” to “Medical Rehabilitation Home Bonsejour Komaki” as of the date of this document. The
same shall apply hereinafter in this document.

－ 26 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
➁ Buildings of investment real estate properties and their leasing status
Annual rent of each property is not disclosed as consent from the tenants have not been obtained. The total annual rent
from real estate in trust owned by the Investment Corporation as of July 31, 2016 is 1,562 million yen (Note).
(Note) The amount is obtained by totaling amounts calculated by multiplying each monthly rent in lease agreements effective as of July 31, 2016,
and is rounded down to the nearest million yen.

Area

Property name

Bonsejour
Chitose-funabashi
Bonsejour Hino
BonsejourMusashi-shinjo
MedicalRehabilitation
Home Bonsejour
Hadanoshibusawa
SOMPO CARE La
Metropolitan vie Re
Machidaonoji
area
SOMPO CARE La
vie Re Azamino
ASHEIM
Hikarigaoka
ASHEIM
Bunkyohakusan
GOOD TIMEHOME Fudo-mae
Bonsejour Yotsugi

Construction
completion(Note 2)

RC/B1 6F

Mar. 8, 1988

2,342.17

2,342.17

1

100.0

49

RC/3F

May 2, 1990

1,984.17

1,984.17

1

100.0

43

RC/4F

Feb. 21, 1985

1,710.43

1,710.43

1

100.0

36

RC/5F

Jul. 17, 1991

3,435.79

3,435.79

1

100.0

47

RC/B1 6F

Oct. 29, 2007

7,720.17

7,720.17

1

100.0

192

RC/B1 5F

Mar. 1, 2004

5,789.25

5,789.25

1

100.0

156

RC/3F

Mar. 6, 2006

3,628.60

3,628.60

1

100.0

76

RC/8F

Feb. 27, 2007

2,494.78

2,494.78

2

100.0

72

Mar. 18, 1992

3,400.20

3,400.20

1

100.0

92

RC (partly
S)/B1 5F
RC/5F

Mar. 28, 1989

Subtotal

Kinki area

AQUAMARINE
Nishinomiyahama
Sompo no ie
Awajiekimae
Sompo no ie
Kobekamisawa
Medical Home
Bonsejour Itami

Chubu area

Core cities

Other area

1

100.0

48

11

100.0

814

5,157.26

2

100.0

121

RC/12F

Jun. 12, 2009

5,658.53

5,658.53

1

100.0

116

S/9F

Jun. 11, 2009

3,626.25

3,626.25

1

100.0

72

SRC/11F

Mar. 3, 1989

2,129.87

2,129.87

1

100.0

36

16,571.91

16,571.91

5

100.0

347

8,858.49

8,858.49

1

100.0

92

8,858.49

8,858.49

1

100.0

92

5,652.94

5,652.94

1

100.0

95

1

100.0

87

SRC/10F

Mar. 13, 1991

RC/B1 6F

Oct. 31, 2005

RC/4F

Nov. 15, 2005

RC/3F
Subtotal
Total

1,962.89
34,468.45

5,157.26

Subtotal
SAWAYAKA
Tagawakan

1,962.89
34,468.45

May 18, 2007

Subtotal
SAWAYAKA
Tachibanakan
SAWAYAKA
Mekarikan

Appraisal NOI
Occupancy rate
(millions of yen)(%) (Note 6)(Note 7)

RC/5F

Subtotal
MedicalRehabilitation
Home Bonsejour
Komaki

Total leasable
Total leased area No. of tenants
area(companies)
(m2)
(m2)
(Note 4)(Note 5)(Note 3)Structure/ No.
of floors(Note 1)

Jan. 20, 2006

4,720.46

4,720.46

10,373.40

10,373.40

2

100.0

182

2,366.20

2,366.20

1

100.0

25

2,366.20

2,366.20

1

100.0

25

72,638.45

72,638.45

20

100.0

1,463

(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 to steel-reinforced concrete structure, “B” refers to basement floor and“F” refers to floors above ground.
(Note 2) ”Construction completion” indicates date of new construction provided in the real estate registry of the building of each owned asset.
(Note 3) ”Total leasable area” indicates the areas believed to be leasable based on the lease agreement or the drawing of each building.
(Note 4) ”Total leased area” indicates the areas, out of the total leasable area, for which actual lease agreements have been concluded and are leased.
(Note 5) ”No. of tenants” indicates the number of tenants based on the lease agreements of each building. For the healthcare facility section of each
owned asset, the master lease company which operates the healthcare facility at the respective section (operator) is counted as a tenant,and accordingly indicated as the number of tenants.
(Note 6) ”Occupancy rate” indicates the total leased area as a percentage of the total leasable area of each owned asset as of July 31, 2016, and isrounded to one decimal place.
(Note 7) ”Appraisal NOI” indicates net operating income obtained by direct capitalization method stated in real estate appraisal report with July 31,
2016 as appraisal date, and is rounded down to the nearest million yen. The above appraisal NOI is NOI obtained by direct capitalization
method.

－ 27 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
➂ Summary of Appraisal Report

Property nameAppraisalcompany

AQUAMARINE
Rich Appraisal
Nishinomiyahama Institute Co., Ltd.
The Tanizawa
Bonsejour
Sogo Appraisal
Chitose-funabashi
Co., Ltd.
The Tanizawa
Bonsejour Hino Sogo Appraisal
Co., Ltd.
The Tanizawa
Bonsejour
Sogo Appraisal
Musashi-shinjoCo., Ltd.
MedicalThe Tanizawa
Rehabilitation
Sogo Appraisal
Home BonsejourCo., Ltd.
Hadanoshibusawa
MedicalThe Tanizawa
Rehabilitation
Sogo Appraisal
Home BonsejourCo., Ltd.
KomakiASHEIM
Japan Real Estate
Hikarigaoka
Institute
ASHEIM
Japan Real Estate
Bunkyohakusan Institute
SOMPO CARE La
Japan Real Estatevie ReInstitute
Machidaonoji
SOMPO CARE La Japan Real Estatevie Re Azamino Institute
SAWAYAKA
Japan Real Estate
Tachibanakan
Institute
SAWAYAKA
Japan Real Estate
Mekarikan
Institute
SAWAYAKA
Japan Real Estate
Tagawakan
Institute
GOOD TIME
Japan Real Estate
HOME Fudo-mae Institute
The Tanizawa
Bonsejour Yotsugi Sogo Appraisal
Co., Ltd.
The Tanizawa
Medical Home
Sogo Appraisal
Bonsejour ItamiCo., Ltd.
Sompo no ie
Japan Real Estate
Awajiekimae
Institute
Sompo no ie
Japan Real Estate
Kobekamisawa
Institute
Total

Appraisal
Direct capitalization method
value(millions ofIndicated value Capitalizationyen)
rate (%)(millions of yen)

Summary of Appraisal Report
DCF method
Indicated value(millions of yen)

Discount rate(%)

Terminal
capitalization rate(%)

Appraisal NOI(millions of yen)
(Note 2)

2,160

2,180

5.4

2,150

5.1

5.6

121

958

976

4.5

950

4.6

4.7

49

806

819

4.9

800

5.0

5.1

43

633

643

5.2

629

5.3

5.4

36

838

852

5.1

832

5.2

5.3

47

1,430

1,440

5.6

1,420

5.7

5.8

92

1,540

1,560

4.9

1,520

4.7

5.1

76

1,590

1,610

4.5

1,570

4.3

4.7

72

3,750

3,790

5.0

3,710

4.8

5.2

192

3,210

3,250

4.7

3,170

4.5

4.9

156

1,580

1,590

5.6

1,560

5.4

5.8

95

1,460

1,470

5.7

1,440

5.5

5.9

87

410

413

5.8

406

5.6

6.0

25

1,910

1,930

4.5

1,880

4.3

4.7

92

872

887

4.8

866

4.9

5.0

48

550

558

5.2

546

5.3

5.4

36

2,130

2,150

5.3

2,110

5.1

5.5

116

1,320

1,330

5.3

1,310

5.1

5.5

72

27,14727,44826,8691,463(Note 1) Figures are based on appraisal reports with appraisal date of July 31, 2016.
(Note 2) ”Appraisal NOI” indicates net operating income obtained by direct capitalization method stated in real estate appraisal report with July 31, 2016 as
appraisal date, and is rounded down to the nearest million yen. The above appraisal NOI is NOI obtained by direct capitalization method.

－ 28 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
➃ Status of Capital Expenditures of Assets under Managementa.

Schedule of Capital Expenditures
Of capital expenditures associated with repair work, etc. currently planned for assets owned by the Investment
Corporation as of July 31, 2016, the following are the major estimated amounts. The estimated construction costs
include the portion separately charged to expenses in accounting.
Estimated construction costs(thousands of yen)
Name of real estate, etc.

PurposeScheduled period

TotalamountPayment
duringperiodTotalamountalready paid

GOOD TIME HOME Fudo-mae(Shinagawa-ku, Tokyo)

Replacement of high-voltage From: November 2016
parts of substation facilities
To: November 2016

10,000－－

GOOD TIME HOME Fudo-mae(Shinagawa-ku, Tokyo)

Updating of parking facilities

From: December 2016
To: December 2016

6,200

－

－

ASHEIM Hikarigaoka(Nerima-ku, Tokyo)

Repair work of exterior walls

From: October 2016
To: October 2016

4,000

－

－

21,445－－41,645－－

Other real estate, etc.

－

－

Total

b.

Capital Expenditures During Period
Of construction work falling under the category of capital expenditures conducted in the fiscal period underreview for assets held by the Investment Corporation as of July 31, 2016, the following are the major amounts.
The capital expenditures in the fiscal period under review amounted to 12,027 thousand yen and repair expenses
separately charged to expenses amounted to 11,912 thousand yen for a combined total of 23,940 thousand yenof construction work implemented.
Name of real estate, etc.

PurposeSOMPO CARE La vie Re Azamino(Yokohama-shi, Kanagawa)

Construction of
filtration device

ASHEIM Bunkyohakusan(Bunkyo-ku, Tokyo)

Replacement of water heater

SAWAYAKA Mekarikan(Kitakyushu-shi, Fukuoka)

PeriodConstruction costs(thousands of yen)recirculation From: June 2016
To: July 2016

3,124

From: June 2016
To: July 2016

1,200

Replacementofelectricity From: May 2016
measuring apparatus
To: June 2016

1,101

Other real estate, etc.

－
Total

－ 29 －－

6,602
12,027

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
➃ Information of Major Tenants”Major tenants” refers to tenants whose leased areas occupy 10% or more of total leased area of the entire portfolio at theend of the fiscal period under review (on July 31, 2016). The annual rent and tenant leasehold and security deposits of each
property are not disclosed as consent from the tenants has not been obtained.
Tenant nameleased area (m2)(Note 1)

Property nameBenesse Style Care
Co., Ltd.

Sompo Care Next Inc.

Sawayaka Club Co.,Ltd.
Sompo Care MessageCo., Ltd. (Note 5)

Bonsejour Chitose-funabashi
Bonsejour Hino
Bonsejour Musashi-shinjo
Medical Rehabilitation Home Bonsejour
Hadanoshibusawa
Medical Rehabilitation Home Bonsejour
Komaki
Bonsejour Yotsugi
Medical Home Bonsejour Itami
Total
SOMPO CARE La vie Re Machidaonoji
SOMPO CARE La vie Re Azamino
Total
SAWAYAKA Tachibanakan
SAWAYAKA Mekarikan
SAWAYAKA Tagawakan
Total
Sompo no ie Awajiekimae
Sompo no ie Kobekamisawa
Total

Contract expiration date
(Note 2)

Appraisal NOI(millions of yen)
(Note 3)
49
43
36

Share
(%) (Note 4)

2,342.17
1,984.17
1,710.43

May 24, 2026
May 24, 2026
November 23, 2026

3.2
2.7
2.4

3,435.79

May 21, 2027

47

4.7

8,858.49

May 21, 2027

92

12.2

1,962.89
2,129.87
22,423.81
7,720.17
5,789.25
13,509.42
5,652.94
4,720.46
2,366.20
12,739.60
5,658.53
3,626.25
9,284.78

January 5, 2026
May 21, 2027－
October 31, 2027
June 27, 2027－
January 29, 2028
January 29, 2028
January 29, 2028－
July 31, 2034
July 31, 2034
－

48
36
354
192
156
348
95
87
25
208
116
72
188

2.7
2.9
30.9
10.6
8.0
18.6
7.8
6.5
3.3
17.5
7.8
5.0
12.8

(Note 1) ”Leased area” indicates areas which are leased to operators as of July 31, 2016.
(Note 2) ”Contract expiration date” indicates the contract expiration date stated in the lease agreement with the operator as the lessee.
(Note 3) ”Appraisal NOI” indicates net operating income obtained by direct capitalization method stated in real estate appraisal report with July 31,
2016 as appraisal date, and is rounded down to the nearest million yen. The above appraisal NOI is NOI obtained by direct capitalization
method.
(Note 4) ”Share” indicates the leased area of each property as a percentage of the total leasable area owned by the Investment Corporation as of July
31, 2016, and is rounded to one decimal place.
(Note 5) The name of the company was changed to “Sompo Care Message Co., Ltd.” from “Message Co., Ltd.” on July 1, 2016.

➅ Portfolio Overview
a. Facility Overview

Property name

Type of facility

AQUAMARINE
Nishinomiyahama
Bonsejour Chitosefunabashi

Paid senior citizens’ homewith nursing care
Paid senior citizens’ homewith nursing care
Paid senior citizens’ homewith nursing care
Paid senior citizens’ homewith nursing care

Bonsejour Hino
Bonsejour Musashishinjo
MedicalRehabilitation Home
Bonsejour
Hadanoshibusawa
MedicalRehabilitation Home
Bonsejour Komaki
ASHEIM Hikarigaoka
ASHEIM
Bunkyohakusan
SOMPO CARE La vie
Re Machidaonoji
SOMPO CARE La vie
Re Azamino
SAWAYAKA
Tachibanakan
SAWAYAKA

No. ofrooms(rooms)(Note 1)

Operator

No. ofresidents(persons)(Note 1)

Capacity(persons)(Note 1)

Occupancy
rate (%)(Note 2)

Preparation dateof Property
DisclosureStatement ofimportant Issues(Note 3)

GREEN LIFE Co., Ltd.

90

100

97

97.0

June 30, 2016

Benesse Style Care Co., Ltd.

42

47

44

93.6

July 1, 2015

Benesse Style Care Co., Ltd.

56

58

51

87.9

July 1, 2015

Benesse Style Care Co., Ltd.

46

49

41

83.7

July 1, 2015

Paid senior citizens’ home
Benesse Style Care Co., Ltd.
with nursing care

100

101

90

89.1

July 1, 2015

Residential type paidsenior citizens’ home

Benesse Style Care Co., Ltd.

123

166

110

66.3

July 1, 2015

AS PARTNERS Co., Ltd.

83

89

85

95.5

July 1, 2016

AS PARTNERS Co., Ltd.

50

52

46

88.5

July 1, 2016

Sompo Care Next Inc.

163

169

110

65.1

July 1, 2016

Sompo Care Next Inc.

145

145

95

65.5

July 1, 2016

Sawayaka Club Co., Ltd.

104

104

101

97.1

July 1, 2016

Sawayaka Club Co., Ltd.

95

95

93

97.9

July 1, 2016

Paid senior citizens’ homewith nursing care
Paid senior citizens’ homewith nursing care
Paid senior citizens’ homewith nursing care
Paid senior citizens’ homewith nursing care
Paid senior citizens’ homewith nursing care
Paid senior citizens’ home

－ 30 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Mekarikan
SAWAYAKA
Tagawakan
GOOD TIME HOME
Fudo-mae
Bonsejour Yotsugi
Medical Home
Bonsejour Itami
Sompo no ie
Awajiekimae
Sompo no ie
Kobekamisawawith nursing care
Paid senior citizens’ homewith nursing care
Paid senior citizens’ homewith nursing care
Paid senior citizens’ homewith nursing care
Residential type paidsenior citizens’ homeService-outfitted housing
for elderly
Service-outfitted housing
for elderly
Total

Sawayaka Club Co., Ltd.

60

60

58

96.7

July 1, 2016

JAPAN LIFEDESIGN Inc.

61

67

59

88.1

July 1, 2016

Benesse Style Care Co., Ltd.

61

65

62

95.4

July 1, 2015

Benesse Style Care Co., Ltd.

62

64

59

92.2

July 1, 2015

Sompo Care Message Co.,Ltd.
Sompo Care Message Co.,
Ltd.

137
(Note 4)137
(Note 4)

129

94.2

―

85

85

65

76.5

―

1,563

1,653

1,395

84.4

―

(Note 1) ”No. of rooms,” “Capacity” and “No. of residents” of paid senior citizens’ home indicate figures stated in Property Disclosure Statement ofimportant Issues (hereinafter the “Property Disclosure Statement of important Issues”) of the paid senior citizens’ home provided by theoperators, or figures confirmed by interviewing the operators. “No. of rooms” and “Capacity” of service-outfitted housing for elderly indicate
figures posted on the website of each property prepared by the operators as of July 31, 2016. “No. of residents” of service-outfitted housing
for elderly indicate figures posted on the website of each property prepared by the operators as of September 7, 2016.
(Note 2) ”Occupancy rate” of paid senior citizens’ home indicates the occupancy rate stated in the Property Disclosure Statement of important Issues
or the rate obtained by dividing the number of residents by capacity, rounded to one decimal place. ”Occupancy rate” of service-outfitted
housing for elderly indicates the 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 Issues” indicates the date stated on the Property Disclosure Statement ofimportant Issues or the base date. Information is not provided for service-outfitted housing for elderly since the Property DisclosureStatement of important Issues does not exist.
(Note 4) The number of rooms as service-outfitted housing for elderly is 136.

－ 31 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
b. Leasing status
Area

Tokyo
Metropolitan
area

Kinki area

Chubu area

Core cities
Other

Property name
Bonsejour Chitose-funabashi
Bonsejour Hino
Bonsejour Musashi-shinjo
Medical Rehabilitation Home
Bonsejour Hadanoshibusawa
SOMPO CARE La vie Re Machidaonoji
SOMPO CARE La vie Re Azamino
ASHEIM Hikarigaoka
ASHEIM Bunkyohakusan
GOOD TIME HOME Fudo-mae
Bonsejour Yotsugi
Subtotal
AQUAMARINE Nishinomiyahama
Sompo no ie Awajiekimae
Sompo no ie Kobekamisawa
Medical Home Bonsejour Itami
Subtotal
Medical Rehabilitation Home
Bonsejour Komaki
Subtotal
SAWAYAKA Tachibanakan
SAWAYAKA Mekarikan
Subtotal
SAWAYAKA Tagawakan
Subtotal
Total

Current fiscal period (from February 1, 2016 to July 31, 2016)
Revenue related to
Occupancy rate
Percentage of total
No. of tenants
rent business(as of the end ofrevenue related to(Note 1)(during the period)
period) (%)
rent business (%)(millions of yen)
1
100.0
1
100.0
1
100.0
1

100.0

1
1
1
2
1
1
11
2
1
1
1
5

100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

1

100.0

1
1
1
2
1
1
20

100.0
100.0
100.0
100.0
100.0
100.0
100.0

Not disclosed(Note 2)

767

100.0

(Note 1) ”No. of tenants” indicates the number of tenants based on the lease agreements of each building. For the healthcare facility section of each
owned asset, the master lease company which operates the healthcare facilities in the respective sections (operator) is counted as a tenant,and accordingly indicated as the number of tenants.
(Note 2) ”Revenue related to rent business” and “Percentage of total revenue related to rent business” of each property are not disclosed as consent
for disclosure of revenue related to rent business has not been obtained from the tenants. The total is the sum of amounts received as rent
for the fiscal period under review based on the lease agreements.

－ 32 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
c. Earnings Performance(Unit: thousands of yen)

Property name

AQUAMARINE
Nishinomiyahama
Bonsejour Chitosefunabashi
Bonsejour Hino
BonsejourMusashi-shinjo
MedicalRehabilitation
Home Bonsejour
Hadanoshibusawa
MedicalRehabilitation
Home Bonsejour
KomakiASHEIM
Hikarigaoka
ASHEIM
Bunkyohakusan
SOMPO CARE La
vie ReMachidaonoji
SOMPO CARE La
vie Re Azamino
SAWAYAKA
Tachibanakan
SAWAYAKA
Mekarikan
SAWAYAKA
Tagawakan
GOOD TIME HOME
Fudo-mae
Bonsejour Yotsugi
Medical Home
Bonsejour Itami
Sompo no ie
Awajiekimae
Sompo no ie
Kobekamisawa
Total

Real estate lease businessrevenueOther
Rent
revenuerevenue

Not disclosed(Note 2)771,885

767,051

4,834

Current fiscal period (from February 1, 2016 to July 31, 2016)
Real estate lease business expenses
Insurance Repair
Property
Outsourcing
tax
expenses expenses

Depreciation
andamortization

Other

NOI
(Note 3)24,039

4,643

2,100

118

2,290

14,486400

59,377

5,510

1,774

224

58

－

3,048

403

21,382

4,997

1,208

213

45

－

3,130

400

19,488

4,027

971

167

40

－

2,447

400

16,139

8,354

1,841

213

81

－

5,817

400

21,093

13,994

4,578

201

187

－

8,627

400

39,626

16,259

3,732

388

86

4,572

7,078

400

34,61910,171

2,522

388

64

－

6,796

400

36,45743,550

5,916

780

191

1,116

35,145400

96,52830,866

4,688

780

140

1,730

23,126400

77,45925,983

2,682

1,140

162

－

21,597400

47,34825,453

3,037

1,140

140

－

20,771400

43,601

8,268

1,185

1,140

49

－

5,492

400

12,918

11,049

2,884

600

90

2,202

4,872

400

44,822

3,211

－

152

48

－

2,738

271

14,727

4,105

－

251

32

－

3,550

271

10,42926,961

4,993

510

145

－

20,911

400

58,40816,541

2,930

510

92

－

12,608400

36,357283,346

49,594

10,901

1,742

11,912

202,246

6,948

690,786(Note 1) All figures indicated are rounded down to 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 as rent for the fiscal period under review based on the leaseagreements.
(Note 3) “NOI”=Real estate lease business revenue – Real estate lease business expenses + depreciation and amortization－ 33 －

This translation of the original Japanese financial report (kessan tanshin) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
d. Diversification by type
Brand

Number ofproperties

Acquisition price(millions of yen)

Opinion of value at
end of period(millions of yen)
(Note 1)

Share (%) (Note 2)

Paid senior citizens’ homes

16

21,891

23,69787.5

Service-outfitted housing forthe elderly

2

3,130

3,450

12.5

Total

18

25,021

27,147100.0(Note 1) ”Opinion of value at end of period” indicates amounts stated in the appraisal report with appraisal date of July 31, 2016, prepared byreal estate appraisers of Japan Real Estate Institute, the Tanizawa Sogo Appraisal Co., Ltd. and Rich Appraisal Institute Co., Ltd., basedon the Articles of Incorporation of the Investment Corporation and the rules set by the Investment Trusts Association, Japan.
(Note 2) ”Share” refers to the percentage of the total acquisition price, and the figures are rounded to one decimal place.

e. Diversification by area
Classification/region
Three Major Metropolitan
Areas
Tokyo Metropolitan
Area

Number ofproperties

Acquisition price(millions of yen)

Opinion of value at
end of period(millions of yen)
(Note 1)

Share (%) (Note 2)

15

21,731

23,69786.9

10

14,867

16,107

59.4

Kinki Area

4

5,594

6,160

22.4

Chubu Area

1

1,270

1,430

5.1

Core Cities

2

2,900

3,040

11.6

Other Areas

1

390

410

1.6

18

25,021

27,147

100.0

Total

(Note 1) ”Opinion of value at end of period” indicates amounts stated in the appraisal report with appraisal date of July 31, 2016, prepared byreal estate appraisers of Japan Real Estate Institute, the Tanizawa Sogo Appraisal Co., Ltd. and Rich Appraisal Institute Co., Ltd., basedon the Articles of Incorporation of the Investment Corporation and the rules set by the Investment Trusts Association, Japan.
(Note 2) ”Share” refers to the percentage of the total acquisition price, and the figures are rounded to one decimal place.

f.

Diversification by the number of rooms
No. of rooms

Number ofproperties

Acquisition price(millions of yen)

Opinion of value at
end of period(millions of yen)
(Note 1)

Share (%) (Note 2)

More than 100 rooms

6

12,07812,93848.3

50 rooms to 100 rooms

10

11,537

12,61846.1

Less than 50 rooms

2

1,406

1,591

5.6

18

25,021

27,147

100.0

Total

(Note 1) ”Opinion of value at end of period” indicates amounts stated in the appraisal report with appraisal date of July 31, 2016, prepared byreal estate appraisers of Japan Real Estate Institute, the Tanizawa Sogo Appraisal Co., Ltd. and Rich Appraisal Institute Co., Ltd., basedon the Articles of Incorporation of the Investment Corporation and the rules set by the Investment Trusts Association, Japan.
(Note 2) ”Share” refers to the percentage of the total acquisition price, and the figures are rounded to one decimal place.

－ 34 －