Contents
Executive Summary

Ⅲ

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

Financial Summary
Major Indexes for 15th Fiscal Period(Ended July 2022)
Actual Results for 15th Fiscal Period
2.
(Ended July 2022)
Earnings Forecasts for3. 16th Fiscal Period (Ending January 2023) and17th Fiscal Period (Ending July 2024)

1.

4. Financial Status
5.

Ⅱ

Changes inDistribution Per Unit／NAV Per Unit

2.

External growth through Public Offering（February 2022）

P16
P17

P4

3. Expansion of Pipeline

P18

P5

4. Actions for Acquisition of Hospital Property

P20

5. ESG Initiatives

P21

P6

Ⅳ

P7
P8

6. Changes in Unrealized Gain

P9

7. Changes in Unit Price(from January 2020)

P10

Status of Asset Management
1. Portfolio Highlights

P12

2. Stable Cash Flow in the Long Term

P13

Ⅴ

Environment Surrounding Healthcare Industry
1. Nursing Care Fee Revision in Fiscal year 2022

P26

2. Supply and Demand of Healthcare Facilities

P27

3. Regional Comprehensive Care System

P28

4. Regional Healthcare Vision

P29

5. Type of Facilities and Housing for the Elderly

P30

Appendix1

Executive Summary
1

External GrowthHCM acquired 10 healthcare facilities (11.4 billion yen) through the third public offering
since IPO.

Asset size expanded to 47 properties/78.4 billion yen, The target of 100 billion yen
asset size is likely to be reached.

2 Performance

Distributions per unit：3,367 yen（+123 yen from previous fiscal period, +20 yen from forecast）

NAV per unit
：127,069 yen（+2,255 yen from previous fiscal period ）The impact of COVID-19 is little. The operational rate is 99.9%.
No rent reduction/exemption, deferral of rent payment.



3 Financial Status

4Interest-bearing liabilities as of the end of the fiscal period was 38.65 billion yen and LTV(based on total assets) was 48.1% after the procurement of 5.5 billion yen with social
loans.（△0.1pt from previous fiscal period ）Long-term issuer rating (JCR) : A+ (Stable)

Recent Topics
Inclusion in FTSE EPRA Nareit Global Real Estate Index
2

Financial SummaryⅠ
3

Ⅰ Financial Summary

1. Major Indexes for 15th Fiscal Period (Ended July 2022)

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

Asset (Assets)

Debt (Liabilities)

Number of properties

47 propertiesc(+10 properties)

Total acquisition price78.4 billion yen)(±11.4 billion yen)

Total appraisal value

Unrealized gain

Average appraisal NOI
yield

Portfolio operational rate

Ratio of fixed rents
Ratio of investment inthree major
metropolitan areas
Average remaining leaseterm

86.3 billion yen)(+12.8 billion yen)
8.0 billion yen)(+1.1 billion yen)interest-bearing liabilities

38.65 billion yen)(±5.50 billion yen)

Average remaining terms
to maturity

2.6 years)(△0.3 years)

Total amount of

100%)(△3.7pt)
12.8 years)(+0.6 years)

94.8%)(△5.2pt)

fixed interest rates

48.1%)

LTV(△0.1pt)

Long-Term Issuer Rating(JCR)

A+ (Stable)

Equity (Net assets)
Market cap(±0pt)
82.8%_(△1.2pt)

Ratio of debt with(△0.1pt)（△0.1pt)

70.9%)

Ratio of long-term debt

5.5%)

99.9%)

0.56%)(+0.01pt)

Average borrowinginterest rate

Distribution per unit
Distribution in excess ofearnings (Note)(Equivalent to return of capital)

NAV per unit

(Note) Distribution in excess of earnings refers to distribution carried out targeting around 20% of depreciation equivalent (return of capital).

62.3 billion yen)(+21.5 billion yen)
3,367 yen)(+123 yen)
307 yen)(△1 yen)127,069 yen)(+2,255 yen)4

Ⅰ Financial Summary

2. Actual Results for 15th Fiscal Period (Ended July 2022)
Revenue and profit increased from the previous period due to properties acquisition throughpublic offering. Achieved +123 yen of distributions per unit.
(Unit: million yen)

14th fiscal
period15th Fiscal Period Actual Results(Comparison with Forecast)

15th Fiscal Period(Ended July 2022)(Ended January 2022)

ActualForecast(Note 2)

Actual

(A)

(B)

(C)

Operating revenue

2,080

2,371

Operating expenses

1,007

Expenses related to leasing
business

Comparison with
Comparison with 13th Fiscal Period
Forecast

Difference in operating expenses (△5)(C)-(B)(C)-(A)(C)-(A)（A）(％)

2,371

△0

+290

14.0%

1,111

1,105

△5

+97

9.7%

701

790

784

△5

+82

11.8%

(Depreciation)

479

551

551

+0

+72

15.1%

General and administrative
expenses

306

321

321

+0

+14

4.9%

1,072

1,259

1,265

+5

+193

18.0%

 Contribution of rent revenue fromproperties acquired in the 15th fiscal period

Non-operating income

0

－

2

+2

+1

336.2%

Difference in operating expenses (+97)

Non-operating expenses

159

165

166

+0

+7

4.7%

Ordinary income

913

1,093

1,101

+7

+187

20.5%

Net income

913

1,092

1,100

+7

+187

20.5%

Distribution per unit (yen)

3,244

3,347

3,367

+20

+123

3.8%

+20

+124

4.2%

-

△1

△0.3%

Operating income

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

2,936
－
308

3,040
307

3,059
1
307

 Decrease in expenses related to leasing business(△5)
 Repair expenses (△6)
Difference in non-operating revenue (+2)
 Insurance income (+1)
15th Fiscal Period Actual Results(Comparison with 14th Fiscal Period)
Difference in operating revenue (+290)

 Increase in expenses related to leasing
business (+82)
 Depreciation (+72)
 Management service expenses (+5)
 Trust fee (+2)
 Increase in general and administrative expenses(+14)
 Professional fees (+4)
 Asset management fee (+3)
 Taxes and dues (+2)
 Survey fee (+1)
Difference in Non-operating expenses (+7)
Interest expenses (+5)
Borrowing expenses (+2)(Note 1) Distribution in excess of earnings refers to distribution carried out targeting around 20% of depreciation equivalent (return of capital).
(Note 2) The forecast for the 15th Fiscal Period (B) is the forecast figure announced in “ (REIT) Financial Report for Fiscal Period Ended January 2022” dated March 18, 2022.

5

Ⅰ Financial Summary

3. Earnings Forecasts for 16th Fiscal Period (Ending January 2023) and17th Fiscal Period (Ending July 2023)

In the 16th fiscal period, while full-period contribution of rent revenue from the property acquiredin the previous fiscal period will be seen, expenses related to leasing business and asset
management fee will increase due to the expansion(Unit:of assetsize and profit is expected to decrease.
million yen)
15th Fiscal
Period(ending July 2023)(ending January 2023)(ending July
2022)

Comparison
with initial
forecast

Comparison
with 15th fiscal
period(C)-(B)(C)-(A)

Difference in operating revenue (+48)

Comparison
with 16th fiscal
period forecast

Initial forecast

Forecast

(A)

(B)

(C)

Operating revenue

2,371

2,419

2,419

+0

+48

2,419

△0

Operating expenses

1,105

1,176

1,178

+1

+73

1,168

△9

Expenses related to leasing
business

784

802

809

+6

+25

819

+9

(Depreciation)

551

563

561

△1

+10

559

△2

General and administrative
expenses

321

373

369

△4

+47

349

△19

Operating income

1,265

1,242

1,241

△1

△24

1,251

+9

Non-operating income

2

－

－

±0

△2

－

±0

Non-operating expenses

166

172

175

+2

+8

186

+11

Ordinary income

1,101

1,070

1,065

△4

△35

1,064

△1

Net income

1,100

1,069

1,064

△4

△35

1,063

△1

Distribution per unit
(yen)

3,367

3,286

3,275

△11

△92

3,269

△6

Distribution per unit

3,060

2,973

2,962

△11

△98

2,957

△5

307

313

313

±0

+6

312

△1

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

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

(Note 3)16th Fiscal Period Forecast (Comparison
with 15th Fiscal Period Results)

17th Fiscal Period

16th Fiscal Period

Forecast(Note 3)(D)(D)-(C) Full-period contribution of rent revenue fromproperties acquired in the 15th fiscal period
Difference in operating expenses (+73)
 Increase in expenses related to leasing
business(+25)
 Repair expenses (+13)
 Depreciation (+10)

 Increase in general and administrative expenses (+47)

Asset management fee (+30)
 Expenses related to investors meeting (+7)
 Survey fee (+4)


Difference in Non-operating expenses (+8)
Increase in interest expenses (+6)
17th Fiscal Period Forecast (Comparison
with 16th Fiscal Period Forecast)Difference in operating expenses (△9)
 Increase in expenses related to leasing business(+9)
 Taxes and dues (+22)
 Repair expenses (△9)
 Depreciation (△2)
 Decrease in general and administrative expenses (△19)
Administrative service fees (△7)
Reduction of related to investors meeting (△7)
Asset management fee (△3)

Difference in Non-operating expenses (+11)
 Interest expenses (+14)
 Borrowing expenses (△2)(Note 1) Distribution in excess of earnings refers to distribution carried out targeting around 20% of depreciation equivalent (return of capital).
(Note 2) The initial forecast for the 16th Fiscal Period (B) is the forecast figure announced in “ (REIT) Financial Report for Fiscal Period Ended January 2022” dated March 18, 2022.
(Note 3) The forecast for the 16th Fiscal Period (C) and The forecast for the 17th Fiscal Period (D) are the forecast figure announced in “ (REIT) Financial Report for Fiscal Period Ended July 2022” dated September 14, 2022.

6

Ⅰ Financial Summary

4. Financial Status
We have built a stable financial base under the bank formation centering on Sumitomo Mitsui Banking Corporation
Status of Interest-Bearing Liabilities

Change in LTV and Total Interest-Bearing Liabilities

End of14th FPEnd of15th FP

ChangeTotal amount ofinterest-bearing
Liabilities(billion
yen)

33.15

38.65

+55.0

40

（Social bonds）(billion
yen)

2.0

2.0

±0

30

(years)

2.9

2.6

△0.3

Ratio of debt with fixedinterest rates

（%）

100

94.8

△5.2

LTV

（%）

48.2

48.1

△0.1

Average borrowing interest （ ）
%
rate

0.55

0.56

+0.01

Average remaining terms tomaturity■Sumitomo Mitsui Banking
Corporation■Sumitomo Mitsui Trust Bank
■Resona Bank

4.2%
Total amount

4.2%

36.65 billion yen

4.8%

Lender

6.1%

14 companies

34.0%■Nippon Life Insurance■Shinkin Central Bank

■Nishi-Nippon City Bank

■Dai-ichi Life Insurance Company■Hiroshima Bank

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

6.3%
8.7%

16.5%

20
10
0

32.45
47.6

44.4
10th FP

33.15
48.1

33.15

33.15

48.2

48.1

（％）

38.65

50

33.15
48
48.2

48.1
46

44.8

11th FP

44.9

44.5

12th FP

13th FP

44
43.8

43.7

14th FP

15th FP

42

Diversification of Maturities

Diversification of Lenders

4.2%

Total interest-bearing liabilities
LTV (Net assets base)
LTV (Market value base)(billion yen)

■Gunma Bank

■Bank of Yokohama■Higashi-Nippon Bank
Total

Amount（billion
yen）

Ratio
（%）

12.45

34.0

6.05

16.5

3.20

8.7

2.30

6.3

2.25

6.1

1.75

4.8

1.55

4.2

1.55

4.2

1.55

4.2

1.25

3.4

0.75

2.0

0.75

2.0

0.75

2.0

0.50

1.4

36.65

100.0

(billion yen)
10

Long-term loans
Investment
corporation
bonds(social
bonds)
Long-term loans(●
202●
refinanced）
Short-term loans

8
6
4

9.25
7.25

5.90

5.55

2

3.90

2.80

2.00
0

16th FP

17th FP

18th FP

20th FP

22nd FP

24th FP

26th FP

2.00
30th FP

7

Ⅰ Financial Summary

5. Changes in Distribution Per Unit／NAV Per Unit
Distribution per unit is stable even under the COVID-19 pandemic, and NAV Per Unit has
improved.
Distribution Per Unit／NAV Per Unit
Distribution per unit(Excluding distribution in excess of earnings) (Note 1)(Distribution Per Unit:yen)(NAV Per Unit:yen)Distribution in excess of earnings per unit (Note 2)
NAV per unit

4000

130,000
3,643
3,240

3,120
3000

3,367

3,320

3500

3,226

3,266

127,069
2,697

2,653

2,699

125,000

124,8142500

120,907

2000

1500
117,445
1000

500

3,244

118,038

118,986

119,303

119,842

120,000

119,268

115,000

115,709
113,99600
110,000
第5期
5th
FP

第6期
6th FP

第7期
7th FP

第8期
8th
FP

第9期
9th FP

第10期
10th FP

第11期
11th
FP

第12期
12th FP

第13期
13th FP

第14期
14th FP

第15期
15th FP

2017年

2018年

2018年

2019年

2019年

2020年

2020年

2021年

2021年

2022年

2022年

1月期

7月期

1月期

7月期

7月期
1月期
7月期
1月期of distribution
7月期
7月期obtained by 1月期(Note 1) The amount
subtracting distribution
in excess of earnings
per unit is indicated.
(Note 2) Distribution in excess of earnings refers to distribution carried out targeting around 20% of depreciation equivalent (return of capital).

8

Ⅰ Financial Summary

6. Changes in Unrealized Gains
Unrealized gains have been increasing steadily.
(million
yen)
（百万円）

(%)

9,000

12.0
Unrealized gains (left axis)

8,000

10.5

Unrealized gains ratio (right axis)

8,091

7,000

8.5

6,000
5,000

7.0

7.2

7.2

7.5

7.7

5.6

4,711

4,901

5,165

10.0

7.7

8.0
7.0

5,094

6.0
5.0

3,000

2,212

2,543

2,878

4.0

3,081

3.0
2.0

1,000
0

11.0

9.0

6,959

5,653

6.1

4,000

2,000

10.3

1.0
5th FP

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

July

January

July

January

July

January

July

January

July

January

July

2017

2018

2018

2019

2019

2020

2020

2021

2021

2022

2022

0.0

9

Ⅰ Financial Summary

7. Changes in Unit Price (from January 2020)
The unit price of HCM has outperformed each index in general since the spread of COVID-19 andcurrently reached the highest price since listing.
September 1, 2022
Announced inclusion in FTSE EPRA
Nareit Global Real Estate Index

160%

東証REIT指数
TSE
REIT Index

東証REIT住宅指数
TSE
REIT Residential Index

投資口価格
HCM

150%
140%
130%

Unit price of HCM
100.0%/136,800 yen（ As of January 6, 2020 ）120%

January 17, 2022
Conducted the third public offering

June 27, 2022
Changed the long-term
issuer rating (JCR)
A → A+March 2020
COVID-19 crisis

110%
100%
90%
80%

(As of September 7,2022)

70%

Unit price of HCM：138.4%/189,300 yen

TSE REIT Index： 94.0%TSE REIT Residential Index：102.7%

60%
50%

Jan. 31, 2020

Jul. 31, 2020

(Note) It is indicated as a percentage with January 6, 2020, as the base date.

Jan. 31, 2021

Jul. 31, 2021

Jan. 31, 2022

Jul. 31, 2022

10

Status of Asset Management

Ⅱ11

Ⅱ Status of Asset Management

1. Portfolio Highlights
Key Data

Number ofproperties

Total acquisition
price

Total appraisal
value (Note 1)

Average appraisal
NOI yield

47

78.4 billion yen

86.3 billion yen

5.5%

Average buildingage (Note 1)

Average remaining
lease term (Note 1)

Ratio of fixed rents

Portfolio operationalrate

16.9 years

12.8 years

100%

99.9%

(+11.4 billion yen)(+10 properties)(+12.8 billion yen)(+0.6 years)(△0.6 years)(△0.1pt)(±0pt)(△0.1pt)

Diversification Status (Note 3)
By Area

By Type

Other

Complex of paid nursing home, medical
service-related facilities, etc.
16.5%
Medical service-related

Healthcare facilities
100%

Serviced housing for theelderly
6.0%Core cities

areas

15.0%

2.2%

GREEN LIFE Co., Ltd. andChubu area

facilities, etc.
2.6%

Operators（Note 4）

Paid nursing
home
74.9%

1.6%

OthersGREEN LIFE HIGASHI NIHON

32.2%

Co., Ltd.
24.1%

Three Major
Metropolitan areas
82.8%

Number of operators
16 operators

Tokyo Metropolitan

Kinki area

area

38.0%

43.2%

Proud Life Inc.
6.4%

Sompo Care Inc.
17.0%

Benesse Style Care Co., Ltd.

Kyowakai Medical Corporation

10.6%

9.7%

(Note 1) “Total appraisal value” is indicated based on the appraisal report with July 31, 2022, as the appraisal date. “Average building age” and “Average remaining lease term” are average values with July 31, 2022, as
the base date, calculated by dividing the remaining years to maturity by 365 and weighted by acquisition price. The figures are rounded down to the first decimal place. For properties having multiple buildings,
they indicate weighted-average figures based on area.
(Note 2) Figures in parentheses are comparison with the end of the 14th FP.
(Note 3) The figures in the graphs are calculated based on acquisition price, rounded off to the first decimal place.
(Note 4) The operators of SHIP Senri Building are separated based on an area basis, with Kyowakai Medical Corporation for the Senri-Chuo Hospital portion and GREEN LIFE for the other portions.

12Ⅱ Status of Asset Management

2. Stable Cash Flow in the Long Term①
By leveraging expertise in the healthcare field, HCM stably owns healthcare facilities
operated by carefully selected operators.
Business evaluation of healthcare facilities and Operators

HCM has built a stable portfolio throughbusiness due diligence and monitoring.
Operators

Operations
capability

Management
stability

Carefully selected operator
HCM has 16 operators with strong track records and highcreditworthiness, including industry-leading SOMPO Care, Benesse
Style Care and GREEN LIFE that belongs to SHIP HEALTHCARE.
 Kyowakai is a major medical corporation that operates 7 hospitals(2,276 beds) and 4 geriatric health services facilities (495 beds), etc.
Top Operators (Based on Acquisition Price) (Note 1)Operator
GREEN LIFE Co., Ltd.
GREEN LIFE HIGASHI NIHON Co., Ltd.
Sompo Care Inc.
Benesse Style Care Co., Ltd.

Total capacity (Note 2)

Share (%)

4,431 people(ranked 25th in Japan) (Note 3)

24.1

29,443 people(ranked 1st in Japan)
19,798 people(ranked 2nd in Japan)

Kyowakai Medical Corporation(Note 1)Business due diligence / Monitoring Quantitative and qualitative assessment and analysis
 Regular visits to facilities and on-site inspections(interviews with facility directors, etc.)

Business
profile/activities

Business
model

Financial status

Compliance(Abuse prevention
measures)(Note 2)
(Note 3)

10.6
9.7

The operators of SHIP Senri Building are separated based on an area basis, with Kyowakai Medical
Corporation for the Senri-Chuo Hospital portion and GREEN LIFE for the other portions.
(From) Weekly Senior Housing Newspaper, August 3・10, 2022 issue (No. 681)
Indicates the figure of Ship Healthcare Holdings Co., Ltd. as a whole.

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

20 years or more

Organizational
management

Staff retainment・Development

-

17.0

12.2%

Ratio offixed rents
100%

Less than10

Averageremaininglease term
12.8 years

years
36.1%

(Note)

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

13

Ⅱ Status of Asset Management

2. Stable Cash Flow in the Long Term②
Portfolio operational rate of HCM has been almost 100% since the IPO, and average occupancy
rate of each facility has been maintained at around 90% even amid the COVID-19 pandemic.
Change in Portfolio Operational Rate and Average Occupancy Rate
（％）
100

100

100

100

100

100

100

99.9

100

91.6

91.5

95

90

85

85.2

100

92.6

92.4

100

100

91.1

91.3

84.9

99.9

88.9

87.7

86.7
84.4

100

85.3

portfolio operational rate

average occupancy rate8075

3rd FP

4th FP

5th FP

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

July

January

July

January

July

January

July

January

July

January

July

January

July

2016

2017

2017

2018

2018

2019

2019

2020

2020

2021

2021

2022

2022

(Note) Portfolio operational rate indicates the ratio of the rented area to the leasable area of the assets as of the end of each fiscal year, and is rounded off to the first decimal place. Average occupancy rate is the rate obtained by
dividing the total number of residents by the total capacity for the facilities and housing for the elderly shown in the Property Disclosure Statement of Important Matters provided by the operator and is rounded off to the firstdecimal place.

14

Actions for Enhancement ofUnitholder ValueⅢ
15

Ⅲ Actions for Enhancement of Unitholder Value

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

March 2015

February 2019

November 2017

・ Conducted the first public
offering
・ Acquired 6 properties (13.4
billion yen)・ IPO・ Acquired 16 properties(23.6 billion yen)February 2022

・ Acquired J-REIT’s first hospital ・Conducted the second public offering
・ Acquired 8 properties (22.7 billion yen)real estate for 2 billion yen
including hospital real estate・ Conducted the third public offering
・ Acquired 10 properties (11.4 billion yen)

(Number ofproperties)(billion yen)

65

<Target> 100

Asset size

100.0

Number of properties

60(Note)

55

78.4

50
64.8

45

64.8

66.3

66.3

67.0

67.0

90
80
70

47

60

40
35

38.4

40.5

40.5

42.1

30
25
20
15

23.6
24

25

25

6th FP
Ended
January
2018

7th FP
Ended
July
2018

50
35

35

36

36

37

37
40
30

27

20

16
1st FP
Ended
July
2015

5th FP
Ended
July
2017

8th FP
Ended
January2019

9th FP
Ended
July
2019

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

10th FP
Ended
January
2020

11th FP
Ended
July
2020

12th FP
Ended
January2021

13th FP
Ended
July
2021

14th FP
Ended
January2022

15th FP
Expected
Endedonfigures
July 31,
March
2022

10

16

Ⅲ Actions for Enhancement of Unitholder Value

2. External growth through Public Offering（February 2022）
HCM made a public offering for the first time since February 2019 and realizedenhancement of unitholder value by external growth.
Overview of the offering

Investment highlights

Payment dateFebruary 1, 2022

Number of new investment
units issued (Note)

48,499 units

1

Issue price/Issue value

124,764 yen/120,477 yen

2Amount paid in (Note)

5.84 billion yen

3(Note) “Number of new investment units issued” and “Amount paid in” include those for third-party allotment on March 1, 2022
(payment date).

Stable portfolio backed by expertise and trackrecord as a REIT dedicated to healthcare facilities.
External growth utilizing wide networks andsponsor support.
Robust financial structure and ESG initiatives.

Overview of the assets acquired
SOMPO CARE
SOMPO CARE
La vie Re
GrandaMadokaRoyal
Sompo no ie
KobeMinamiurawa Minamiurawa Kawaguchi
SayamaikawadaniType
OperatorNOAH
GARDENLEGEND

Sompo Care Inc.
Kobe-shi,
Hyogo

SellerKobe Tochi
Tatemono
Co.,Ltd

Acquisition
price(million yen)

1,288

Appraisal
スポンサーからの取得
value
1,300
(million yen)
4.9%

SENIOR LIFE

1,022

647
1,100
オペレーター等からの取得
5.4%

4.8%

822

1,260

スポンサー等が組成したSPCからの取得
883
1,310

4.8%

RICHNOAHGARDEN
Season Bell

4.9%

NOAH
GARDENCASA RICH

Servicedhousing forthe elderly

NOAH KONZER Co.,Ltd

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

Sakai-shi,
Kawaguchi-shi, Saitama
Osaka
Sakai
engineering
Godo Kaisha
andNEC Capital Solutions Limited Ginsen Co.,Ltd
MYGK 4-Go
construction
Co.,Ltd
600

NOAH
GARDEN
L Grace

Residential typepaid nursing home

Paid nursing home with care service

Location

Appraisal
NOI yield

Heartland
Kawaguchi
Meiseien

Total /
Average

Sapporo-shi, Hokkaido
Godo Kaisha
NOAH GARDEN
Utsukushigaoka

Godo Kaisha

NOAH KONZERNOAH GARDEN
Co.,Ltd
Utsukushigaoka

2,000

859

622

1,350

1,619

11,442

2,180

910

660

1,520

1,730

12,240

5.0%

5.6%

5.6%

5.8%

5.6%

5.2%

17

Ⅲ Actions for Enhancement of Unitholder Value

3. Expansion of Pipeline①

HCM aims to expand the pipeline through a “gathering system” that utilizes wide-ranging
networks with operators and developers, etc. and their various functions.
System to Gather Quality Deals and Information

Warehousing
functions

Property
information
Asset Management Company

Sponsor Support Companies
Sponsorsupportagreement

Sumitomo Mitsui
Finance and Leasing

Yoei

GinsenKobe Tochi
Tatemono

Support Companies

Muromachi
Building

SMBC Trust Bank Ltd. / RISA Partners, Inc.
Max-Realty Inc. / SMFL Mirai Partners Co., Ltd.

Property
information

Developers
Homebuilders

Pipeline
supportagreement

Wide-ranging networks

Operators

OwnersHealthcare
Asset Management Co., Ltd.

Property
information(Individuals, business companies, funds, etc.)

Medical corporations18

Ⅲ Actions for Enhancement of Unitholder Value

3. Expansion of Pipeline②

The pipeline has accumulated to about 27 billion yen in total.
The states of pipeline accumulation

Case of pipeline

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

Facilities andhousing for theelderly(to be developed)

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

Medicalservicerelated
facilities, etc.

Paid nursing home

NOAH GARDEN Bloom View
(Sapporo-shi, Hokkaido; 54 rooms)
Paid nursing home

Sunny Life Funabashi(Funabashi-shi, Chiba; 185 rooms)
Change of ownership case of residential type paid
nursing home. Acquired by a sponsor on thepremise of future sale to HCM, seizing the rareopportunity of asset replacement by a large realestate company. Good relationship with theoperator also contributed.

Total Pipeline over 27 billion yen(billion yen)
350
35
300
30

Facilities
and housing for the elderly(to be developed)●

本投資法人への組入れ
Acquisition
by HCM
6

パイプライン残高
Pipeline
totaling

-9.5

5.5

150
15

5

-1.5

3

100
10

4
6

10

22
13

25

17

Medical Rehabilitation Home
Granda Hanayama(Sapporo-shi, Hokkaido; 52 rooms)

27

Paid nursing home (to be developed)

21.5
Charm Hanakoganei(Kodaira-shi, Tokyo; 66 rooms)

00
March 2019 September 2019 March 2020 September 2020 March 2021September 2021

Paid nursing home (to be developed)

5.5

3

200
20

505

Paid nursing home (to be developed)

スポンサー等が組成したSPCによる取得
Acquisition
by SPC formed by a sponsor, etc

250
25

SAWAYAKA Seaside Kukinoumi(Kitakyusyu-shi, Fukuoka; 80 rooms)

March 2022 September 2022

The sponsor acquired the land in advance byassuming the disposition to HCM. A development
case in which the sponsor led the overall project
until the completion of building in cooperation
with the constructor. Opened in March 2021.

PD House Nishitokyo(Nishitokyo-shi, Tokyo; 60 rooms)(Note) In case a sponsor or an SPC formed by a sponsor, etc. decides to sell a healthcare facility they own, HCM has the first refusal rights to acquire the property. However, the acquisition is undecided and there is no guaranteethat HCM will acquire the property in the future. The above properties are some of healthcare facilities owned by sponsors or SPCs formed by sponsors, etc.

19

Ⅲ Actions for Enhancement of Unitholder Value

4. Actions for Acquisition of Hospital Property
Investment & Management Policy1Major investment target
 Real estate of stably managed hospitals(Hospitals expected to play a definite role in the Regional
Healthcare Vision) ⇔ Different from business rehabilitation
funds
 Medical malls and health checkup centers, etc. may also
be incorporated into portfolio

2

3

4

Opportunity of REIT Investment (Utilization)

Investment & Management complying with the “Hospital
Real Estate Guidelines”
 Allocation of experts familiar with hospital business in the
Asset Management Company
 Conclusion of a long-term fixed-rent lease agreement, inprincipleMarket size is approximately 23 trillion yen (Note), and hospital real estate accounts for over
50% of the entire healthcare facility real estate market (approximately 51%)



Mostly self-owned by medical corporations, etc.

Major hospital needs

Rebuilding, extension, securing of relocation site with the intention of strengthening medical
functions

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

Strengthen financial status, Cash flow management

Concentration of management resources on the main business, Outsourcing of real estatebusinessImproving the brand of operating facilities(Note) Calculated by the Asset Management Company based on the estimate value by KPMG Healthcare Japan Co.,
Ltd. as of June 2016.

Case Example

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

Name

SHIP Senri Building(Senri-Chuo Hospital)

Location

Toyonaka-shi, Osaka

Operators

Kyowakai Medical
Corporation

Number of beds 400

Large-scale multi-use healthcare facility, combining a hospital and apaid nursing home
 Developed and master leased in its entirety by a group company ofSHIP HEALTHCARE Senri Chuo Hospital, a major tenant, opened when the property
was completed (2008) as a hospital mainly responsible forsubacute and chronic care
 HCM acquired it by utilizing the warehousing functions of the20
sponsorPromotion for market expansion
 Lectures on utilization of Healthcare REIT at industry groupmeetings (Congress of Japan Hospital Association, etc.)
 Participation in seminars for medical care-related operators
hosted by the Financial Services Agency and the Ministry ofLand, Infrastructure, Transport and Tourism

Size of hospital real estate market

Ⅲ Actions for Enhancement of Unitholder Value

5. ESG Initiatives

Worked to contribute to the aged society and enhance unitholder value over the medium tolong term through asset management that contributes to ESG.
Issues that need to be solved

Environment

Highly relevant SDGs

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

・ Elimination of the shortage of supply of housing forthe elderly against the elderly population
・ Prevention of job separation due to nursing carethrough the promotion of supply of nursing carefacilities and Promotion of ｗomen’s empowerment

SocialSpecific Actions

・ Renovation work for improving the efficiency of
air conditioning system using subsidies(GreenLife Moriguchi and Kobe Gakuentoshi Building)・ Procured funds through social finance (social loans andsocial bonds)
・ Issued Impact Reports that summarize endeavors
toward addressing social issues (every December)・ Improvement of business efficiency and reduction ofwork burden for nursing care staff

・ Supported the improvement of efficiency of nursing carebusiness of operators with the introduction of ICT system- Introduced EGAO link, a system for enhancing
efficiency of nursing care services (ASHEIM
Hikarigaoka and ASHEIM Bunkyohakusan)・ Prevention of abuse of residents and harassment offacility staff

・ Employment support for people with disabilities(GreenLife Moriguchi, SHIP SENRI BUILDING)

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

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

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

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

21

Ⅲ Actions for Enhancement of Unitholder Value

5. ESG Initiatives ～ Environment ～Green Lease

Energy Saving Renovation WorkHCM introduced a green lease agreement with a tenantthat rent a whole building of “Kobe Gakuentoshi Building(Hapine Kobe Gakuentoshi)” (2021)
 Introduced green lease agreements at 6 properties among
the assets acquired in the 15th fiscal period (2022)
＜Case of Kobe Gakuentoshi Building(Hapine Kobe Gakuentoshi)＞
LED construction work

Healthcare & Medical
Investment Corporation

Property owner
Advantage：
Increase of rent income

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

Light Bulb
Replacement Cost
23％

69％ Reductionof Electricity Cost

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

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

Cost reduction for
the tenant due tothe Green Lease
50％

Electricity Cost
77％



Control board

New
compressor

Green Lease Fee(Add to the rent)
26％

Electricity Cost
24％
Before theAfter theImplementation
Implementation
Green lease：Win-win action in which property owner and tenant
work together to reduce environmental burdens such as energy
saving of real estate and improve the working environment, andboth sides can benefit from cost reductions, etc.

22

Ⅲ Actions for Enhancement of Unitholder Value

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

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

Social issues
Super-agedsociety

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

Promote the supply of healthcare facilities associal infrastructureIntroduced a system capable of understanding the status ofresidents, inputting records and responding to calls withsmartphones and supported the improvement of efficiencyof the nursing care business (ASHEIM Hikarigaoka, ASHEIM
Bunkyohakusan)
Improving ResilienceImplemented countermeasures against flooding at buildingsin the event of typhoons and heavy rains
Employment Support for People with Disabilities

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

Used the vacant sections within the facility to conduct
support projects for people with disabilities in the form ofhydroponic cultivation of vegetables (GreenLife Moriguchi,
SHIP SENRI BUILDING)

Social Finance

Stakeholder Engagement

Established a social finance framework to provide
investment opportunities for investors who have strong
interest in ESG investment.
JCR Social Finance Framework Evaluation The highest evaluation
Social １(F)Period：10 years
Interest rate：0.78%

Socialbond

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

Socialloan(about 86% of the loan balance)

Social loan balance: 31.65 billion yen※ New loans after February 2019 are all social loans.

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



Posted an article featuring an interview with the operator in
the asset management report (optional page). Provided
information on the features of and efforts by the operator
 Conducting tenant (operator) satisfaction surveys (once a
year in principle). Sharing the results of the survey withproperty management companies


Information Disclosure

Issuance of Impact Report summarizing actions to solve
issues which the medical and nursing care industries arefacing (every December, on HP)
 Prepared an exclusive page on ESG initiatives on the website
23

Ⅲ Actions for Enhancement of Unitholder Value

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

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

Appropriate Management of Conflicts of Interest


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

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

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

related party

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

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

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

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

asset

managementcompany

Yuji Fujise

Instruction
s forcancellationor changeof content

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

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

Reporting to the Board of Directors and HCM

Appropriate
check and balance
Executive Director

Instructions
forcancellationor change ofcontent

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

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

Seiji Yoshioka(However, if the proposed acquisition plan falls under the
category of transaction with interested party, etc. that
requires approval of HCM's Board of Directors based on theInvestment Trust Act, prior approval of the HCM's Board of
Directors shall be obtained.)24

Environment Surrounding
the Healthcare Industry

Ⅳ
25

Ⅳ Environment Surrounding the Healthcare Industry

1. Revision of Medical Fee (FY 2022)
Major Points of Medical Fee Revision (Medical)
in Fiscal Year 2022

Revisions to Medical Fee and Nursing Care Fee and Changes in
Medical Plan and Nursing Care Insurance Business Plan

Further clarification of hospital bed functions

Fiscalyear•Acute stage: New establishment of a system to provide additional
evaluation for enhanced acute-stage hospital wards, review of thedegree of severity and necessity of medical and nursing care
•Recovery stage: Review of percentage of severely ill patients, additionof cardiac disorder, new establishment of secondary fracture prevention
management fee•Regional Comprehensive Care: Optimization of the percentage ofpatients moved from the general hospital ward of own hospital

2012
2014

2016
2018
2020

•New establishment of additional evaluation for enhanced outpatient
infection control measures, evaluation of collaboration with and advice
from local medical institutions, etc.
•Review of fixed-sum payment for medical examinations without areferral, promotion of introduction and use of refill prescription•New establishment of evaluation system for specialized management inhome-visit nursing care by nurses with high expertise+0.00%+1.20%+0.73%+0.10%

Nursing careinsurancebusiness plan
Fifth

+0.63%
Sixth-2.27％+0.49%-0.84%+1.14%+0.55%-1.19%+0.55%-0.46%

2021
2022

Medical
plan

Sixth

2017

•Improvement of treatment of nursing staff, task sharing/task shifting

Infectious disease control, strengthening of other outpatientfunctions, etc.

Nursingcare fee

2015

2019

•New establishment of initial consultation fee for online medical
treatment, use of Individual Number Card as health insurance card

+1.38%

Medicalfee

2013

Improvement of operational efficiency through work-stylereform for doctors, etc. and use of ICT•Enhancement of a system to provide additional evaluation for placing
staff to support doctors’ clerical work, expansion of the scope of
addition evaluation for data submission

Main unit
portion+0.54%

SeventhEighth

+0.70%+0.43%

Seventh

-0.94%

2023
2024

Next time→

Simultaneous revision

EighthNinth(Reference) Major Initiatives by Nursing Care Providers
Following Revision of Nursing Care Fees in FY 2021
Infectious disease control,
formulation of BCP, abuse
prevention

Formulation of plans, holding ofcommittees, development ofguidelines, training, drills (mandatory)

Promotion of scientific nursing
care (additional evaluation for
us of LIFE)

Introduction of nursing care record
software, development of Wi-Fi
environment, preparation of tablet

Improvement of treatment
and working environment of
nursing care staff

Improvement of efficiency through ICT
such as monitoring equipment andstrengthening of anti-harassment
measures

26

Ⅳ Environment Surrounding the Healthcare Industry

2．Supply and Demand of Healthcare Facilities
Rising Elderly Ratio and Increase in Elderly Single
Households

Upgrades and Expansion of Healthcare Facilities
June
Backedby Government Policy
2015

Outlook of Change
in Japan’s Population and65-74
ElderlyRatio
75 years old or older
years old

(10 thousand people)

64 years old or younger
Ratio of 65 years old and over

15,00010,161

10,00010,71810,854

5,000

10.3%

0

3.9%
776
471

1,109
717

1985

1995

14.5%
5.7%

9,218

20.1%
1,407
1,160

9.1%

2005

Ratio of 75 years old and over

ActualEstimate

30.0%

28.0%

26.3%

8,577

8,788
14.5%

12.7%

17.8%

32.8%

40%

36.8%

21.4%
7,740 19.6% 6,723

1,734
1,613

1,709
1,825

1,497
2,180

1,522
2,260

1,643
2,277

2015

2020

2025

2035

2045

March
2021

30%

10%
0%

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

the National Institute of Population and Social Security Research

Ratio of Elderly Single Households in Elderly Households
その他
Other

30,000

夫婦のみ
Couple with noother members

Actual

20,000

27.3%

24.8%

9,365

9,022
10,000

6,420

5,525

0

29.6%
9,090
6,848

6,510

6,606

6,756

50%

40.0%

40%
6,590

6,763

6,693

6,666

6,870

7,959

8,418

8,963

5,928

6,717

7,512

2015

2020

2025

2020年

39.0%

35.7%

2010

2015年

単独高齢者割合
Ratio of single elderly

37.4%

4,791
2010年

単独
SingleEstimate

2030

2025年

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

20%

Source: Statistics Bureau, Ministry of Internal Affairs and Communications “2020 census“ and “Population Projection for Japan (2017 projection)” by(Thousand households)

Housing Life Basic Plan
(nationwide plan)

2030年

2035

2035年

Resident Capacity

Resident Capacity（Note）

thousand people

thousand people

230

thousand people

20%

thousand people

2005

0%

2030

2018

2014

0.9％

10%

1,490

890

690

Resident Capacity

30%

2040

Resident Capacity

４％

2.5％

2.1％

(Note) Resident capacity is estimated based on the outcome indicator for the ratio of housing for the elderly
as a percentage of the elderly population.

2040年

Source: Statistics Bureau, Ministry of Internal Affairs and Communications “2020 census“ and “Household Projection for Japan (Nationwide Projection)”(2018 projection) by the National Institute of Population and Social Security Research

Promotion of Further Supply of Healthcare Facilities

Current Status of Reconstruction of Hospitals, etc.

Although supply of facilities and housing for the elderly is on the rise each year, the supply
rate of paid nursing homes against the elderly population was a mere 1.7% in 2020, andpromotion of further supply is needed.

Supply Status of Paid Nursing Homes(people)Resident capacity

600,000

1.0%

400,000

1.1%

1.2%

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

Supply rate for 65 years ole or older
1.5%
1.4%
1.3%

1.6%

1.6%

1.7%

2.0%
1.5%

0.7%

1.0%

200,000
216,174

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



315,234

350,990391,144424,828

482,792

518,507552,350

576,116

609,472

0

0.5%

8,000

0.0%
2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

0.67%

0.70%

0.72%

0.75%

Supply Status of Serviced Housing for the Elderly

300,000

Number of units

200,000

100,000

0.42%

0.57%

0.61%

0.64%

135,352

166,279

191,871

210,859

225,374

238,289

250,352

262,021

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

1,955

1,747

1,569

1,466

122
729

131
719

141
704

141
674

1,344
123
664

1,344
113
633

1,153
100
619

5,687

5,880

6,050

6,130

6,231

6,318

6,382

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

4,000
2,000
0

272,870

2016Dec. 20182017Dec. 20192019Dec. 2021
2020Dec.
2011Dec. 20132012Dec. 2014
2013Dec. 2015
2014Dec. 2016
2015Dec. 20172018Dec. 2020
2012
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.
Dec.

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

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

1.00%

0.50%

0.29%
89,1220

0.50%

Supply rate for 65 years ole or older

6,000

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

0.00%

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

27

Ⅳ Environment Surrounding the Healthcare Industry

3．Regional Comprehensive Care System
Regional Comprehensive Care System○ We will establish a regional comprehensive care system that provides residences, medical care, nursing care, preventative medicine and life support in an
integrated manner to offer an environment where the elderly can continue living in an area they are used to, even after they come to require nursing care,in around 2025 when the baby-boomer generation will be 75 or older.
○ Establishment of a regional comprehensive care system is necessary to support the lives in regions where elderly with dementia live as the number of
elderly with dementia is expected to increase in the future.
○ There is a large regional difference concerning the progress of aging. There are, for example, large cities with the overall population remaining flat but the
population of people aged 75 years old or older increasing rapidly and rural areas with the population of people aged 75 years old or older increasingslightly although the overall population decreasing.
It is necessary for municipalities and prefectural governments, which are the insurer, to create a regional comprehensive care system based on autonomy
and independence and in accordance with regional characteristics.

Image of Regional Comprehensive Care System
When you get sick...
Medical care••Acute care hospital
Subacute and recovery phase/recovery
phase rehabilitation hospital

When you need nursing care...
Nursing care

Hospital visit&
stay

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

Outpatient nursing care&admission

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

Own house
Serviced housing for the elderly, etc.

Patients
with dementia

 In-home service:• Long-term home-visit nursing care, home-visit nursing,outpatient day long-term nursing care
• Multifunctional long-term nursing care in a small grouphome• Short-term admission for daily life long-term nursing care
• 24-hour home-visit service• Combined service(Multifunctional long-term nursing care in a small grouphome + home-visit nursing), etc.
 Nursing care prevention service

To live a healthy life forever...

Life support & nursing care prevention

 Facility and home service• Long-term care welfare facility
for the elderly• Long-term care health facility forthe elderly• Communal daily long-term
nursing care for a dementia
patient• Daily life long-term nursing carefor those admitted to a specified
facility, etc.

* Regional comprehensive care systems are expected to beestablished for each area in the sphere of everyday life
(specifically junior high school districts) where necessary
services are provided within about 30 minutes

Golden age club, local government, volunteer, NPO, etc.
Source: Website of Ministry of Health, Labor and Welfare28

Ⅳ Environment Surrounding the Healthcare Industry

4．Regional Healthcare Vision“Regional Healthcare Vision” is to estimate and stipulate medical demand (number of patients) and required number of beds in 2025 for each
medical function in each area of the vision (secondary medical area) in order to promote functional differentiation and coordination of
hospital wards.
Following this, prefectural governments and medical staff will respond to realize the formulated initiative.
Current hospital bed functions(as of 2020)(Hospital Ward A)

Total 1.209 million beds

Medical institution

Advanced acutestage function

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

Number of Beds to be Requiredin 2025

Advanced acute stage
156,000 beds
(13%)

Total 1.191 million beds (Note)

Decrease by approx. 25%(Hospital Ward B)

Voluntarily
selectmedicalfunction

Acute stage
function

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

(Hospital Ward C)
Recovery stage
function

Recovery stage
375,000 beds
(31%)

(Hospital Ward D)
Chronic stage
function

Increase by approx. 2 times

Recovery stage
189,000 beds
(16%)

Prefectural
government

Advanced acute stage
131,000 beds
(11%)

Report current status andfuture direction of medical
functions

Decrease by approx. 10%

Chronic stage
317,000 beds
(26%)

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

Shift to nursing carefacilities, in-home medicalcare, etc.

Chronic stage
284,000 beds
(24%)

Nursing care facilities, inhome medical care, etc.
Approx.
300,000 people(Source) Prepared by the Asset Management Company based on “Initiatives for Medical/Nursing Care
Reform” (June 22, 2017) by the Ministry of Health, Labour and Welfare(Note 1) The upper chart is prepared by the Asset Management Company based on the “Community Healthcare Initiative”
of the Ministry of Health, Labour and Welfare.

(Note)

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

29

Ⅳ Environment Surrounding the Healthcare Industry

5．Facilities and Housing for the Elderly

Characteristics

Mainfounder

Paid nursing homes with careservice

These are paid nursing homes for the elderly that fall under the prefectural government’s designation of “Daily Life
Long-Term Care Admitted to a Specified Facility” for long-term insurance. Facility staff provide nursing care services
when residents need nursing care, and the nursing care fee is a fixed amount (fixed) based on the level of nursing
care required for respective residents. Facilities must be designated in order to open (restrictions apply).

For-profit
Entities

Residential type paid nursing
homes

Unlike paid nursing homes with care service, these are paid nursing homes for the elderly in which residents
themselves enter separate contracts with external operators to receive nursing care services in the case they neednursing care. The nursing care fee is based on the amount of nursing care services the resident used (variable).
Facilities need to notify the government in order to open.

For-profit
Entities

Serviced housing for the elderly(Sakouju)

This is rental housing for the elderly that meets registration standards for size, facilities, etc. At a minimum, it must
provide safety confirmation and living consultation services. Facilities must register in order to open.

For-profit
entities

Long-term daily care fordementia patients in communal
living situation(Group homes)

These are one type of community-based long-term care service business stipulated by the Long-Term Care
Insurance Act. Their purpose is to delay the progress of dementia of users, who are people requiring nursing careand in the state of dementia, through communal living in small groups of up to nine people per unit with assistanceand functional training.

For-profit
Entities

Facilities covered by public aid
providing long-term care to theelderly(intensive care homes for theelderly)

These are welfare facilities for the elderly for people requiring nursing care on a continual and steady basis but havedifficulty receiving it at home. With stricter admission requirements since April 2015, these facilities in principle
target elderly people requiring long-term care level 3 or higher.

Social welfare
corporations

Geriatric health services facilities

These are facilities to provide medical treatment, nursing care under medical supervision, functional training andother necessary medical services as well as everyday care with the aim of returning people requiring nursing care toa self-independent state and living at their own homes.

MedicalCorporations

Integrated facilities for medical
and long-term care

Established in April 2018, these are facilities that provide everyday medical supervision, a certain level of nursing
care and residential functions to elderly people who require long-term recuperation. End-of-life care and deathwatch
are also available.

MedicalCorporations

Type

30

Appendix

Ⅴ
31

Ⅴ Appendix

Portfolio Map
1

Ratio of investment inthree major
metropolitan areas

2
3
4

82.8%
Strategic
investment inthree major
metropolitan
areasTokyo metropolitan area

39

3
9
20

33

10

37 38 3

21

7
8

15

31
14

2
4

27 26 2523

134

2 19 1

16

1

30
29

35

4142
40
36

13
12
11

SOMPO CARE La vie Re
Kobe-ikawadani
SOMPO CARE Sompo no ie
35
Sayama
34

1 18

5
6

6

43.2%
Kinki area 38.0%
Chubu area 1.6%
Core cities15.0%
Other areas 2.2%

22
17

5

Paid nursing
home

Medical servicerelated facilities,
etc.

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

11
12
13
14
15
Paid nursing
home

16
17
18
19

Medical Rehabilitation Home
Bonsejour Hadanoshibusawa
Medical Rehabilitation Home
Bonsejour Komaki
ASHEIM Hikarigaoka
ASHEIM Bunkyohakusan
SOMPO CARE La vie Re
Machidaonoji
SOMPO CARE La vie Re
AzaminoSAWAYAKA Tachibanakan
SAWAYAKA Mekarikan
SAWAYAKA Tagawakan
GOOD TIME HOME Fudo-mae
Bonsejour Yotsugi
Medical Home Bonsejour
Itami
Kobe Gakuentoshi Building(Hapine Kobe Gakuentoshi)
GreenLife Moriguchi
Hapine Kobe Uozaki Nibankan

21

Smiling Home Medice Adachi

22

Aikoen Ichibankan Building(Aikoen Ichibankan)

38 NOAH GARDEN L Grace

42 Madoka Minamiurawa
Serviced housing
for the elderly

10

Bonsejour Musashi-shinjo

37 NOAH GARDEN LEGEND

41 Granda Minamiurawa

32

9Bonsejour Hino

20

39 NOAH GARDEN Season Bell28

8

Bonsejour Chitose-funabashi

36 Royal Kawaguchi

40 Heartland Kawaguchi Meiseien

24

7

AQUAMARINE
Nishinomiyahama

1

SOMPO CARE Sompo no ie
Awajiekimae

3

SOMPO CARE Sompo no ie
Kobekamisawa
NOAH GARDEN CASA RICH

1

Niigata Rehabilitation Hospital

2

1

SHIP SENRI BUILDING

23
24

Granda Tsuruma-Yamato

Hanakotoba Minami
Hanakotoba Miura

25

SOMPO CARE La vie Re
Hama-Kawasaki

26

Hanakotoba Shin-Yokohama

27
28

Hanakotoba Shin-Yokohama
II
Hanakotoba Odawara

29

Verde Minowa

30

Verde Hotaka

31

Sunny Life Kita-Shinagawa

32

Sunny Life Kamakura

33

Nichii Home Nishikokubunji

32

Ⅴ Appendix

Details of Portfolio①
Paid nursing home

4

5

1

2

3

AQUAMARINE
Nishinomiyahama

Bonsejour Chitose-funabashi

Bonsejour Hino

Bonsejour Musashi-shinjo

Medical Rehabilitation Home
Bonsejour Hadanoshibusawa

Location

4-15-2 Nishinomiyahama,Nishinomiya-shi, Hyogo

1-37-3 Funabashi,
Setagaya-ku, Tokyo

438-1 Ochikawa,
Hino-shi, Tokyo

773-2 Chitose, Takatsu-ku,
Kawasaki-shi, Kanagawa

1-6-60 Shibusawakami,
Hadano-shi, Kanagawa

Nearest station

Hanshin Nishinomiya Stationon the Hanshin Main Line

Chitose-Funabashi Stationon the Odakyu Odawara Line

Mogusaen Stationon the Keio LineMusashi-Shinjo Stationon the JR Nambu Line

Shibusawa Station
on Odakyu Odawara Line

Construction completion

May 2007

March 1988

May 1990

February 1985

July 1991

Acquisition period

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Appraisal NOI (Note 1)

117 million yen

48 million yen

43 million yen

39 million yen

47 million yen

Appraisal NOI yield (Note 1)

6.0％

5.9％

6.0％

6.8％

6.5％

Appraisal value (Note 1)

2,100 million yen

997 million yen

818 million yen

643 million yen

850 million yen

Acquisition price (ratio)

1,950 million yen (2.5%)

824 million yen (1.0%)

724 million yen (0.9%)582 million yen (0.7%)728 million yen (0.9%)

Site area

2,587.93 m²

1,020.92 m²

2,211.28 m²

1,233.49 m²

2,588.04 m²

Leasable area

5,274.54 m²

2,342.17 m²

1,984.17 m²

1,710.43 m²

3,435.79 m²

Structure/
number of floors (Note 2)

RC, 5F

RC, B1 6FRC, 3FRC, 4FRC, 5F

Number ofrooms/resident capacity

90 rooms, 100 people

42 rooms, 47 people

56 rooms, 58 people

46 rooms, 49 people

100 rooms, 101 people

occupancy rate (Note 3)

99.0％

78.7％

86.2％

91.8%

87.1％

Operator

GREEN LIFE

Benesse Style Care

Benesse Style Care

Benesse Style Care

Benesse Style Care

Remaining years of leaseagreement (Note 4)

14.8 years

3.8 years

3.8 years

4.3 years

4.8 years

33

Ⅴ Appendix

Details of Portfolio②
Paid nursing home

)

10

6

7

8

9

Medical Rehabilitation Home
Bonsejour Komaki

ASHEIM Hikarigaoka

ASHEIM Bunkyohakusan

SOMPO CARE La vie Re
Machidaonoji

SOMPO CARE La vie Re
AzaminoLocation

3-1 Shiroyama,
Komaki-shi, Aichi

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

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

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

Nearest station

Ajioka Stationon the Meitetsu Komaki Line

Shakujii-Koen Stationon the Seibu Ikebukuro Line

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

Construction completion

March 1991

March 2006

February 2007

October 2007

March 2004

Acquisition period

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Appraisal NOI (Note 1)

92 million yen

76 million yen

74 million yen

193 million yen

156 million yen

Appraisal NOI yield (Note 1)

7.3％

5.5％

5.2％

5.3％

5.1％

Appraisal value (Note 1)

1,450 million yen

1,560 million yen

1,750 million yen

4,050 million yen

3,400 million yen

Acquisition price (ratio)

1,270 million yen (1.6%)

1,385 million yen (1.8%)

1,430 million yen (1.8%)

3,580 million yen (4.6%)

3,050 million yen (3.9%)

Site area

8,229.85 m²

2,868.46 m²

540.29 m²

7,404.13 m²

2,748.64 m²

Leasable area

8,858.49 m²

3,628.60 m²

2,507.25 m²

7,720.17 m²

5,789.25 m²

Structure/
number of floors (Note 2)

SRC RC S, 10F

RC, 3FRC, 8F

RC, B1 6F

RC, B1 5F

Number ofrooms/resident capacity

124 rooms, 165 people

83 rooms, 89 people

50 rooms, 52 people

163 rooms, 169 people

145 rooms, 145 people

occupancy rate (Note 3)

78.8％

91.0％

82.7％

67.5％

99.3％

Operator

Benesse Style Care

AS PARTNERS

AS PARTNERS

Sompo Care

Sompo Care

Remaining years of leaseagreement (Note 4)

4.8 years

11.6 years

4.6 years

5.2 years

4.9 years

Nakagawa Stationon the Yokohama Municipal
Subway Blue Line34

Ⅴ Appendix

Details of Portfolio③
Paid nursing home

15

11

12

13

14

SAWAYAKA Tachibanakan

SAWAYAKA Mekarikan

SAWAYAKA Tagawakan

GOOD TIME HOME Fudo-mae

Bonsejour Yotsugi

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

1-9-15 Okubo, Moji-ku,
Kitakyushu-shi, Fukuoka
Mojiko Stationon the JR Kagoshima HonsenLine393-1 Oaza Ita,
Tagawa-shi, Fukuoka
Magarikane Stationon the Heisei Chikuho Railway
Tagawa Line

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

3-1-11 Higashiyotsugi,
Katsushika-ku, Tokyo
Yotsugi Stationon the Keisei Railway OshiageLineConstruction completion

October 2005

November 2005

January 2006

March 1992

March 1989

Acquisition period

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2016

Appraisal NOI (Note 1)

93 million yen

85 million yen

25 million yen

91 million yen

47 million yen

Appraisal NOI yield (Note 1)

6.1％

6.2％

6.4％

5.2％

5.7％

Appraisal value (Note 1)

1,580 million yen

1,450 million yen

391 million yen

2,050 million yen

886 million yen

Acquisition price (ratio)

1,520 million yen (1.9％)

1,380 million yen (1.8％)

390 million yen (0.5％)

1,740 million yen (2.2%)

824 million yen (1.0%)

Site area

3,359.66 m²

3,758.26 m²

4,300.90 m²

1,206.60 m²

1,136.46 m²

Leasable area

5,652.94 m²

4,720.46 m²

2,366.20 m²

3,400.20 m²

1,962.89 m²

Structure/
number of floors (Note 2)

RC, B1 6FRC, 4FRC, 3F

RC, B1 5F

RC, 5F

Number ofrooms/resident capacity

104 rooms, 104 people

95 rooms, 95 people

60 rooms, 60 people

61 rooms, 67 people

61 rooms, 65 people

occupancy rate (Note 3)

95.2％

81.1％

96.7％

86.6％

81.5％

Operator

Sawayaka Club

Sawayaka Club

Sawayaka ClubJAPAN LIFEDESIGN

Benesse Style Care

Remaining years of leaseagreement (Note 4)

5.5 years

5.5 years

5.5 years

4.3 years

3.4 years

Location
Nearest station

Fudo-mae Stationon the Tokyu Meguro Line35

Ⅴ Appendix

Details of Portfolio④
Paid nursing home

20

16

17

18

19

Medical Home Bonsejour Itami

Kobe Gakuentoshi Building(Hapine Kobe Gakuentoshi)

GreenLife Moriguchi

Hapine Kobe Uozaki Nibankan

Location

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

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

Nearest station

Hankyu Itami Stationon the Hankyu Railway Itami
Line

Gakuentoshi Stationon the Kobe Municipal Subway
Seishin-Yamate Line

Construction completion

March 1989

January 2009

September 2006

March 2010

March 1998

Acquisition period

Fiscal period ended July 2016

Fiscal period ended July 2017

Fiscal period ended July 2017

Fiscal period ended July 2017

Fiscal period ended July 2017

Appraisal NOI (Note 1)

38 million yen

227 million yen

220 million yen

48 million yen

53 million yen

Appraisal NOI yield (Note 1)

7.5％

5.2％

5.3％

5.2％

5.3％

Appraisal value (Note 1)

557 million yen

4,540 million yen

4,500 million yen

995 million yen

1,060 million yen

Acquisition price (ratio)

514 million yen (0.7%)

4,320 million yen (5.5%)

4,150 million yen (5.3%)

930 million yen (1.2%)

1,000 million yen (1.3%)

Site area

1,976.11 m²

2,742.81 m²

5,872.83 m²

932.94 m²

2,877.11 m²

Leasable area

2,129.87 m²

12,636.48 m²

8,356.85 m²

1,772.89 m²

3,427.08 m²

Structure/
number of floors (Note 2)

SRC, 11F (Exclusive portion)

RC, B1 9F

S RC, 9F

S, B1 4F

RC S, 5F

Number ofrooms/resident capacity

62 rooms, 64 people

131 rooms, 138 people

155 rooms, 189 people

47 rooms, 47 people

73 rooms, 90 people

occupancy rate (Note 3)

82.8％

92.8％

100.0％

95.7％

76.7％

Operator

Benesse Style Care

GREEN LIFE

GREEN LIFE

GREEN LIFE

Benesse Style Care

Remaining years of leaseagreement (Note 4)

4.8 years

18.6 years

17.2 years

18.6 years

1.6 years

6-17-34 Satanakamachi,
8-10-7 Uozakiminamimachi,
Moriguchi-shi, Osaka
Higashinada-ku, Kobe-shi, Hyogo
Dainichi Stationon the Osaka Municipal Subway
Uozaki Station
Tanimachi Line and Osakaon the Hanshin Electric Railway
MonorailGranda Tsuruma-Yamato

2-3-41 Shimotsuruma,
Yamato-shi, Kanagawa
Tsuruma Stationon the Odakyu Enoshima Line36

Ⅴ Appendix

Details of Portfolio⑤
Paid nursing home

25

21

22

23

24

Smiling Home Medice Adachi

Aikoen Ichibankan Building(Aikoen Ichibankan)

Hanakotoba Minami

Hanakotoba Miura

SOMPO CARE La vie Re HamaKawasaki

Location

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

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

3-5 Suwacho,
Miura-shi, Kanagawa

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

Nearest station

Rokucho Stationon the Tsukuba Express

Niigata Stationon the JR Shinetsu Main Line

Misakiguchi Stationon the Keikyu Kurihama Line

Odasakae Stationon the JR Nambu Line

Construction completion

November 2005

February 2010

June 2007

March 2007

Acquisition period

Fiscal period ended July 2017

Fiscal period ended July 2017

Appraisal NOI (Note 1)

120 million yen

45 million yen

56 million yen

35 million yen

89 million yen

Appraisal NOI yield (Note 1)

5.3％

5.8％

5.2％

5.6％

5.2％

Appraisal value (Note 1)

2,500 million yen

860 million yen

1,240 million yen

668 million yen

1,810 million yen

Acquisition price (ratio)

2,253 million yen (2.9%)

770 million yen (1.0%)

1,071 million yen (1.4%)

615 million yen (0.8%)

1,710 million yen (2.2%)

Site area

2,069.41 m²

2,597.52 m²

428.76 m²

1,017.55 m²

2,832.33 m²

Leasable area

3,870.98 m²

4,311.20 m²

1,710.68 m²

1,959.64 m²

4,060.21 m²

Structure/
number of floors (Note 2)

RC, 4F

S, 5F

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

82 rooms, 82 people

90 rooms, 90 people

51 rooms, 51 people

53 rooms, 54 people

58 rooms, 58 people

occupancy rate (Note 3)

93.9％

91.1％

90.2％

85.2％

89.7％

Operator

GREEN LIFE HIGASHI NIHON
Co., Ltd.

Medical Corporation AIKOKAI

Proud Life Inc.

Proud Life Inc.

Sompo Care

Remaining years of leaseagreement (Note 4)

14.5 years

14.0 years

10.3 years

10.3 years

5.4 years

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

Fiscal period ended January 2019 Fiscal period ended January 2019

Fiscal period ended July 201937

Ⅴ Appendix

Details of Portfolio⑥
Paid nursing home

26

27

28

29

Hanakotoba Shin-Yokohama

Hanakotoba
Shin-Yokohama II

Hanakotoba Odawara

Verde Minowa

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

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

Construction completion

March 2004

Acquisition period

Location

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

30
Verde Hotaka

839-4 Aza Machiyabo, Kamishiba,
1221 Aza Maebara, Oaza
Misatomachi, Takasaki-shi,Namashina, Kawaba-mura, Tonegun, Gunma
Gunma
Numata Stationon the JR Joetsu Line

Kamonomiya Stationon the JR Tokaido Line

Takasaki Stationon the JR Takasaki Line

April 2007

September 2009

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

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

Fiscal period ended July 2019

Fiscal period ended July 2019

Fiscal period ended July 2019

Fiscal period ended July 2019

Fiscal period ended July 2019

Appraisal NOI (Note 1)

109 million yen

21 million yen

49 million yen

109 million yen

91 million yen

Appraisal NOI yield (Note 1)

5.2％

5.8％

5.6％

6.7％

6.9％

Appraisal value (Note 1)

2,400 million yen

383 million yen

946 million yen

1,700 million yen

1,430 million yen

Acquisition price (ratio)

2,071 million yen (2.6%)

375 million yen (0.5%)880 million yen (1.1%)

1,620 million yen (2.1%)

1,328 million yen (1.7%)

Site area

894.00 m²

375.00 m²

1,202.12 m²

７,920.29 m2

4,375.31 m²

Leasable area

5,230.23 m²

1,837.29 m²

2,203.42 m²

11,098.17 m²

6,352.86 m²

Structure/
number of floors (Note 2)

RC, 9F

RC, B1 7FRC, 4F

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

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

Number ofrooms/resident capacity

136 rooms, 136 people

29 rooms, 30 people

60 rooms, 65 people

174 rooms, 206 people

121 rooms, 174 people

occupancy rate (Note 3)

86.8％

96.7％

96.9％

93.7%

98.9％

Operator

Proud Life Inc.

Proud Life Inc.

Proud Life Inc.

Verde Corporation

Verde Corporation

Remaining years of leaseagreement (Note 4)

10.3 years

10.3 years

10.3 years

4.8 years

4.8 years

Nearest station

38

Ⅴ Appendix

Details of Portfolio⑦
Paid nursing home

Location

31

32

33

34

35

Sunny Life Kita-Shinagawa

Sunny Life Kamakura

Nichii Home Nishikokubunji

SOMPO CARE La vie Re
Kobe-ikawadani

SOMPO CARE Sompo no ie
Sayama2-11-22
Nishikoigakubo,
Kokubunji-shi, Tokyo

1745-1
Ozaki, Arise, Ikawadanicho,
Nishi-ku, kobe-shi, Hyogo

548-1
Minaminoda, Higashi-ku
Sakai-shi, Osaka

3-8-6 Kitashinagawa, Shinagawa- 214-4 Aza Kichime, Kamimachiya,
Kamakura-shi, Kanagawa
ku, Tokyo

Ikawadani Stationon the Kobe Municipal Subway
Seishin-Yamate Line
April 2009(New construction)
December 2015(Expansion)

Nearest station

Shimbamba Stationon the Keikyu Line

Shonan-Machiya Stationon the Shonan Monorail

Nishikokubunji Stationon the JR Chuo Line

Construction completion

September 2018

September 2014

September 1990

Acquisition period

Fiscal period ended July 2019

Fiscal period ended July 2020

Fiscal period ended July 2021

Fiscal period ended July 2022

Fiscal period ended July 2022

Appraisal NOI (Note 1)

90 million yen

76 million yen

36 million yen

63 million yen

32 million yen

Appraisal NOI yield (Note 1)

4.9％

5.3％

5.0％

4.9％

5.4％

Appraisal value (Note 1)

2,040 million yen

1,620 million yen

760 million yen

1,300 million yen

647 million yen

Acquisition price (ratio)

1,825 million yen (2.3%)

1,418 million yen (1.8%)

720 million yen（0.9％）

1,288 million yen（1.6％）

600 million yen（0.8％）

Site area

1,105.12 m²

2,055.67 m2

1,948.41 ㎡

3,606.00 ㎡

2,264.75 ㎡

Leasable area

2,135.54 m²

3,817.91 m2

1,559.99 ㎡

3,824.54 ㎡

1,997.87 ㎡

Structure/
number of floors (Note 2)

S, 3F

S, 5F

S, 3F

RC・S, 4F

S, 3F

Number ofrooms/resident capacity

66 rooms, 66 people

128 rooms, 128 people

46 rooms, 46 people

80 rooms, 80 people

50 rooms, 50 people

occupancy rate (Note 3)

89.4％

89.1％

93.5％

83.8％

92.0％

Operator

Kawashima Corporation

Kawashima Corporation

Nichii Carepalace

Sompo Care Inc.

Sompo Care Inc.

Remaining years of leaseagreement (Note 4)

21.2 years

17.2 years

0.6 years (Note 5)

13.6 years

3.1 years

Sayama Station on the Nankai
Koya Line
August 2005

39

Ⅴ Appendix

Details of Portfolio⑧
Paid nursing home

36

37

38

39

Royal Kawaguchi

NOAH GARDEN LEGENDNOAH GARDEN L Grace

NOAH GARDEN Season Bell40
Heartland Kawaguchi Meiseien

Location

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

Nearest station

Kawaguchi-Motogo Stationon the Saitama Railway

Kaminopporo Stationon the JR Chitose Line

Kaminopporo Stationon the JR Chitose Line

5-3-1 1-Jo, Fukuzumi,
Toyohira-ku, Sapporo-shi,
Hokkaido
Fukuzumi Stationon the Sapporo City Subway

Construction completion

October 2008

October 2015

October 2017

December 2019

January 2006

Acquisition period

Fiscal period ended July 2022

Fiscal period ended July 2022

Fiscal period ended July 2022

Fiscal period ended July 2022

Fiscal period ended July 2022

Appraisal NOI (Note 1)

62 million yen

48 million yen

35 million yen

78 million yen

100 million yen

Appraisal NOI yield (Note 1)

4.9％

5.6％

5.6％

5.8％

5.0％

Appraisal value (Note 1)

1,310 million yen

910 million yen

660 million yen

1,520 million yen

2,180 million yen

Acquisition price (ratio)

1,260 million yen (1.6%)

859 million yen (1.1%)

622 million yen (0.8%)1,350 million yen (1.7%)

2,000 million yen (2.5%)

Site area

2,294.91㎡

9,012.28㎡

9,012.28㎡

3,636.38㎡

1,996.66㎡

Leasable area

3,484.02㎡

2,736.89㎡

2,075.25㎡

4,602.26㎡

3,885.90㎡

Structure/
number of floors (Note 2)

RC, 3FRC, 4FRC, 4FRC, 5FRC, 6F

Number ofrooms/resident capacity

56 rooms, 56 people

72 rooms, 72 people

51 rooms, 51 people

136 rooms, 136 people

97 rooms, 100 people

occupancy rate (Note 3)

87.5％

81.9％

92.2％

66.2％

100.0％

Operator

SENIOR LIFE SUPPORTNOAH KONZERNOAH KONZERNOAH KONZERMEISHO

Remaining years of leaseagreement (Note 4)

27.1 years

27.6 years

27.6 years

29.6 years

9.1 years

10-4-3 2-Jo, Utsukushigaoka,
10-4-1 2-Jo, Utsukushigaoka,
Kiyota-ku, Sapporo-shi, Hokkaido Kiyota-ku, Sapporo-shi, Hokkaido

3-10-17 Kamiaoki,
Kawaguchi-shi, Saitama
Hatogaya Stationon the Saitama Railway

40

Ⅴ Appendix

Details of Portfolio⑨
Paid nursing home41

Serviced housing for the elderly

1

42

２

3

Granda Minamiurawa

Madoka Minamiurawa

SOMPO CARE Sompo no ie
Awajiekimae

SOMPO CARE Sompo no ie
Kobekamisawa

NOAH GARDEN CASA RICH

Location

63-2 Nishinotsuma, Koyaba,
Kawaguchi-shi, Saitama

58 Nishinotsuma, Koyaba,
Kawaguchi-shi, Saitama

3-20-26 Awaji, Higashiyodogawaku,
Osaka-shi, Osaka

8-2-5 Kamisawadori, Hyogo-ku,
Kobe-shi, Hyogo

10-4-5 2-Jo, Utsukushigaoka,
Kiyota-ku, Sapporo-shi, Hokkaido

Nearest station

Minami-Urawa Stationon the JR Keihin-Tohoku Line

Minami-Urawa Stationon the JR Keihin-Tohoku Line

Awaji Stationon the Hankyu Railway Kyoto andSenri Lines

Kamisawa Stationon the Kobe Municipal Subway
Seishin-Yamate Line

Kaminopporo Stationon the JR Chitose Line

Construction completion

July 2011

April 2005

June 2009

June 2009

March 2015(New construction)
Octorber 2016(Expansion)Acquisition period

Fiscal period ended July 2022

Fiscal period ended July 2022

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2022

Appraisal NOI (Note 1)

49 million yen

39 million yen

116 million yen

72 million yen

91 million yen

Appraisal NOI yield (Note 1)

4.8%

4.8%

6.0％

6.0％

5.6％

Appraisal value (Note 1)

1,100 million yen

883 million yen

2,250 million yen

1,390 million yen

1,730 million yen

Acquisition price (ratio)

1,022 million yen（1.3％）

822 million yen（1.0％）

1,930 million yen (2.9%)

1,200 million yen (1.8%)

1,619 million yen（2.1％）

Site area

2,620.05㎡

2,620.05㎡

1,251.26 m²

743.22 m²

9,012.28㎡

Leasable area

2,373.25㎡

1,918.98㎡

5,745.15 m²

4,058.35 m²

4,986.98㎡

Structure/
number of floors (Note 2)

S, 3F

S, 3F

RC, 12F

S, 9F

RC, 4F（SECOND COURT：5F）

Number of rooms/resident
capacity

58 rooms, 60 people

54 rooms, 54 people

137rooms, 137 people

85 rooms, 85 people

115 rooms, 115 people

occupancy rate (Note 3)

90.0％

87.0％

84.7％

87.1%

85.2％

Operator

Benesse Style Care

Benesse Style Care

Sompo Care

Sompo Care

NOAH KONZER

Remaining years of leaseagreement (Note 4)

18.9 years

2.7 years

12.0 years

12.0 years

28.1 years

41

Ⅴ Appendix

Details of Portfolio⑩
Medical service-related facilities, etc.

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

1

1
Niigata Rehabilitation Hospital

SHIP SENRI BUILDING

Location

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

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

Nearest station

Hayadori Stationon the JR Hakushin Line

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

Construction completion

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

September 2008

Acquisition period

Fiscal period ended January 2018

Fiscal period ended July 2019

Appraisal NOI (Note 1)

153 million yen

679 million yen

Appraisal NOI yield (Note 1)

7.4％

5.2％

Appraisal value (Note 1)

2,300 million yen

14,200 million yen

Acquisition price (ratio)

2,060 million yen (2.6%)

12,920 million yen (16.5%)

Site area

15,056.85 m²

4,202.65 m²

Leasable area

13,476.55 m²

24,813.85 m²

Structure/
number of floors (Note 2)

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

RC, B1 11F

Number ofrooms/resident capacity

168 beds

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

occupancy rate (Note 3)-

Paid nursing home: 100 %Operator

Medical Corporation AIKOKAI

Kyowakai Medical Corporation
GREEN LIFE

Remaining years of leaseagreement (Note 4)

24.6 years

16.2 years(Note 1) Figures in Appraisal NOI, Appraisal NOI yield and Appraisal Value are as of July 31, 2022. Appraisal NOI is rounded down to the nearest million yen and Appraisal NOI yield to the first decimal place.
(Note 2) As for abbreviation used in Structure column, SRC refers to steel-reinforced concrete, RC refers to reinforced concrete and S refers to steel structure.
(Note 3) The bed occupancy rate indicates the ratio obtained by dividing the number of residents by the capacity, rounded off to the first decimal place. The number of residents used in the calculation is described in the latest
Property Disclosure Statement of Important Matters, which the Asset Management Company obtained as of the date of preparing this document, for the facilities and housing for the elderly owned by HCM.
(Note 4) Remaining years of lease agreement is as of July 31, 2022, rounded down to the first decimal place.
(Note 5) As of the date of this document, the lease period has been extended to March 11, 2028.

42

Ⅴ Appendix

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

Sompo Care Inc.

Benesse Style Care
Co., Ltd.

Kyowakai Medical
Corporation

Proud Life Inc.

NOAH KONZER
Co.,Ltd

Number of facilities(Note 1)

Remarks

A consolidated
subsidiary of SHIPHEALTHCAREHOLDINGS, INC.,
which is listed on
the TSE Prime
MarketA nursing care business that plays a central
role in the Lifecare Business of SHIPHEALTHCARE HOLDINGS, INC. Operates
nursing care facilities nationwide.

AQUAMARINE Nishinomiyahama
Kobe Gakuentoshi Building (Hapine Kobe Gakuentoshi)
GreenLife Moriguchi
Hapine Kobe Uozaki Nibankan
Smiling Home Medice Adachi
SHIP SENRI BUILDING

A consolidated
subsidiary of
Sompo Holdings,
Inc., which is listedon the TSE Prime
MarketMainly operates paid nursing homes with careservice under the Sompo Care La vie Re
brand and mid-to low-end homes under the
SOMPO CARE Sompo no ie brand and the
SOMPO CARE Sompo no ie S brand, centeringon three major metropolitan areas.

SOMPO CARE La vie Re Machidaonoji
SOMPO CARE La vie Re Azamino
SOMPO CARE Sompo no ie Awajiekimae
SOMPO CARE Sompo no ie Kobekamisawa
SOMPO CARE La vie Re Hama-Kawasaki
SOMPO CARE La vie Re Kobe-ikawadani
SOMPO CARE Sompo no ie Sayama

17.0

A consolidated
subsidiary ofBenesse Holdings,
Inc., which is listedon the TSE Prime
MarketOperates seven brands in Tokyo, Osaka,
Nagoya, and elsewhere in Japan. The brands
are mainly mid-to high-end, such as
Bonsejour and GRANNY AND GRANDA.

Bonsejour Chitose-funabashi
Bonsejour Hino
Bonsejour Musashi-shinjo
Medical Rehabilitation Home Bonsejour Hadanoshibusawa
Medical Rehabilitation Home Bonsejour Komaki
Bonsejour Yotsugi
Medical Home Bonsejour Itami
Granda Tsuruma-Yamato
Granda Minamiurawa
Madoka Minamiurawa

10.6

7

-

A major medical corporation operating a wide
range of businesses including six hospitals(2,276 beds), four long-term care healthfacilities (495 beds), and home care support.
Provides safe and convenient medical/nursing
care services ranging from acute-stage
medical care to rehabilitation, home medicalcare, and nursing care.

SHIP SENRI BUILDING (Senri-Chuo Hospital)

9.7－

A consolidated
subsidiary of Sony
Group Corporation,
which is listed on
the TSE Prime
MarketA former Yuuai Holdings Group company.
Operates paid nursing homes, etc. under the“Hanakotoba” brand, centering on Kanagawa
Prefecture. Affiliated with Sony Financial
Holdings Inc. since 2017.

Hanakotoba Minami
Hanakotoba Miura
Hanakotoba Odawara
Hanakotoba Shin-Yokohama
Hanakotoba Shin-Yokohama II

6.4

Unlisted company

The company operates facilities and for theelderly in Sapporo City, and the number offacilities serviced housing for the elderly andthe number of units they operate rank first in
Hokkaido. The company is a comprehensive
welfare service provider also engaging in thedevelopment of medication support systems
and rental of assistive products with its
affiliated companies providing meal services,
designing and constructing medical/nursing
care facilities, etc.

NOAH GARDEN LEGENDNOAH GARDEN L Grace
NOAH GARDEN Season BellNOAH GARDEN CASA RICH

5.7

Hospital

28

－

38

452

343

4

(Note 4)

31

23

－

－

－

－

Facilities owned by HCM

Share
(%)

Attribute

Facilities andhousing forthe elderly(Note 2)

24.1

(Note 3)43

Ⅴ Appendix

Operator List②
Operator name

Sawayaka Club Co.,
Ltd.

Number of facilities(Note 1)
Facilities andhousing forthe elderly

94

Hospital－

Facilities owned by HCM

Share
(%)

Attribute

Remarks

A of UCHIYAMAHOLDINGS Co.,
Ltd., which is listedon the TSE
Standard Market

Operates facilities under the SAWAYAKA
brand (low price range without advance fees)around Japan, centering on Fukuoka
Prefecture.

SAWAYAKA Tachibanakan
SAWAYAKA Mekarikan
SAWAYAKA Tagawakan

4.2

Sunny Life Kita-Shinagawa
Sunny Life Kamakura

4.1(Note 2)

Kawashima
Corporation

145－

Unlisted company

A major nursing care business operator
operating nationwide centering on the Tokyo
Metropolitan Area, with Sunny Life as themain brand and under the motto “Encourage
the elderly and the family to get relieved
from exhausting nursing care.” None of theirfacilities requires initial fees.

Verde Corporation

6－

Unlisted company

A core company of the Hotaka Kai Group, anursing care/welfare business group holding
the largest number of rooms in Gunma
Prefecture.

Verde Minowa
Verde Hotaka

3.8Operating hospitals and clinics as well as paid
nursing home with care service, group homeand long-term care health facilities in Niigata
Prefecture

Aikoen Ichibankan Building (Aikoen Ichibankan)
Niigata Rehabilitation Hospital

3.6

Medical Corporation
AIKOKAI

13

2

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

AS PARTNERS Co.,
Ltd.

22

－

Unlisted company

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

ASHEIM Hikarigaoka
ASHEIM Bunkyohakusan

3.6

Meisho Co., Ltd.

31－

Unlisted company

Having Sonoda Medical Corporation as its
parent organization, the company operates
paid nursing homes and such in Tokyo,
Saitama and Chiba Prefectures.

Heartland Kawaguchi Meiseien

2.5－

Unlisted company(Capitalpartnership byNomura Real
Estate Holdings,
Inc.)

Operates paid nursing homes under the
GOOD TIME HOME brand in Tokyo. Operates
in Kyushu and Hokkaido besides the Tokyo
Metropolitan Area through SOUSEIJIGYOUDAN Co., Ltd., the parent company,
and other subsidiaries.

GOOD TIME HOME Fudo-mae

2.2－

A affiliate ofZensho Holdings
Co., Ltd., which islisted on the TSE
Prime Market

The company is a nursing care service
provider under the umbrella of Zensho
Holdings Co., Ltd., which operates foodservise and such.

Royal Kawaguchi

1.6－

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

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

JAPAN LIFEDESIGNInc.

SENIOR LIFE
SUPPORT Co.,Ltd

Nichii Carepalace
Company3

2

81

Nichii Home Nishikokubunji(Note 1) “Number of facilities” indicates figures tallied by the Asset Management Company based on information obtained from each company (including announced materials) and information on its website (as of March 31, 2022).
(Note 2) Shares based on acquisition price are indicated. Furthermore, the operators of SHIP Senri Building are separated based on an area basis, with Kyowakai Medical Corporation for the Senri-Chuo Hospital portion and GREEN LIFE Co., Ltd.
for the other portions.
(Note 3) The share of GREEN LIFE HIGASHI NIHON Co., Ltd. is 2.9%.
(Note 4) Only the number of long-term care health facilities is indicated.
(Note 5) Indicates the actual figures in September 2021 based on NSG Group’s website.

0.9

44

Ⅴ Appendix

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

Property nameAppraisal company

End of July 2022
Appraisal value(million yen)(A)

Direct capitalization
methodIndicatedvalue(million yen)

DCF method

Capitalization
rate
(%)

Indicatedvalue(million yen)

Discount rate(%)
(Note 2)

Terminal
capitalization
rate (%)

Appraisal NOI(million yen)
(Note 3)End ofJanuary 2022
Appraisal value(million yen)(B)

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

AQUAMARINE Nishinomiyahama

Rich Appraisal
Institute Co., Ltd.

2,100

2,110

5.2

2,090

4.9

5.4

117

2,100

0

Bonsejour Chitose-funabashi

The Tanizawa Sogo
Appraisal Co., Ltd.

997

1,020

4.3

987

4.4

4.5

48

974

+23

Bonsejour Hino

The Tanizawa Sogo
Appraisal Co., Ltd.

818

832

4.8

812

4.9

5.0

43

818

0

Bonsejour Musashi-shinjo

The Tanizawa Sogo
Appraisal Co., Ltd.

643

653

5.1

638

5.2

5.3

39

643

0

Medical Rehabilitation Home Bonsejour Hadanoshibusawa

The Tanizawa Sogo
Appraisal Co., Ltd.

850

864

5.0

844

5.1

5.2

47

850

0

Medical Rehabilitation Home Bonsejour Komaki

The Tanizawa Sogo
Appraisal Co., Ltd.

1,450

1,460

5.5

1,440

5.6

5.7

92

1,450

0

ASHEIM Hikarigaoka

Japan Real Estate
Institute

1,560

1,560

4.6

1,550

4.4

4.7

76

1,520

+40

ASHEIM Bunkyohakusan

Japan Real Estate
Institute

1,750

1,760

4.2

1,740

4.0

4.3

74

1,680

+70

SOMPO CARE La vie Re Machidaonoji

Japan Real Estate
Institute

4,050

4,070

4.6

4,020

4.4

4.7

193

3,940

+110

SOMPO CARE La vie Re Azamino

Japan Real Estate
Institute

3,400

3,420

4.4

3,370

4.2

4.5

156

3,300

+100

SAWAYAKA Tachibanakan

Japan Real Estate
Institute

1,580

1,590

5.4

1,560

5.2

5.6

93

1,550

+30

SAWAYAKA Mekarikan

Japan Real Estate
Institute

1,450

1,460

5.5

1,430

5.3

5.7

85

1,430

+20

SAWAYAKA Tagawakan

Japan Real Estate
Institute

391

394

5.6

387

5.4

5.8

25

383

+8

GOOD TIME HOME Fudo-mae

Japan Real Estate
Institute

2,050

2,070

4.2

2,030

4.0

4.3

91

1,990

+60

Bonsejour Yotsugi

The Tanizawa Sogo
Appraisal Co., Ltd.

886

902

4.7

879

4.8

4.9

47

886

0

Medical Home Bonsejour Itami

The Tanizawa Sogo
Appraisal Co., Ltd.

557

566

5.1

553

5.2

5.3

38

557

0

Kobe Gakuentoshi Building (Hapine Kobe Gakuentoshi)

Daiwa Real EstateAppraisal Co., Ltd.

4,540

4,600

4.6

4,520

4.4

4.8

227

4,540

0

GreenLife Moriguchi

Daiwa Real EstateAppraisal Co., Ltd.

4,500

4,560

4.5

4,470

4.3

4.7

220

4,500

0

Hapine Kobe Uozaki Nibankan

Daiwa Real EstateAppraisal Co., Ltd.

995

1,010

4.6

988

4.4

4.8

48

995

0

Granda Tsuruma-Yamato

The Tanizawa Sogo
Appraisal Co., Ltd.

1,060

1,070

4.7

1,050

4.8

4.9

53

1,060

0

Smiling Home Medice Adachi

The Tanizawa Sogo
Appraisal Co., Ltd.

2,500

2,540

4.6

2,480

4.7

4.8

120

2,500

0

AIKOEN ICHIBANKAN Building

The Tanizawa Sogo
Appraisal Co., Ltd.

860

864

5.2

858

5.3

5.4

45

860

0

Hanakotoba Minami

Japan Real Estate
Institute

1,240

1,250

4.4

1,230

4.2

4.5

56

1,240

0

Hanakotoba Miura

The Tanizawa Sogo
Appraisal Co., Ltd.

668

676

4.8

664

4.9

5.0

35

668

0

SOMPO CARE La vie Re Hama-Kawasaki

JLL Morii Valuation &Advisory K.K.

1,810

1,840

4.6

1,780

4.4

4.8

89

1,810

0

45

Ⅴ Appendix

Summary of Appraisal Report②
Property nameAppraisal company

End of July 2022
Appraisal value(million yen)(A)

Summary of Appraisal Report (Note 1)
Direct capitalization
methodIndicatedvalue(million yen)

DCF method

Capitalization
rate
(%)

Indicatedvalue(million yen)

Discount rate(%)
(Note 2)

Terminal
capitalization
rate (%)

Appraisal NOI(million yen)
(Note 3)End ofJanuary 2022
Appraisal value(million yen)(B)

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

Hanakotoba Shin-Yokohama

Japan Real Estate
Institute

2,400

2,420

4.2

2,380

4.0

4.3

109

2,330

+70

Hanakotoba Shin-Yokohama II

Japan Real Estate
Institute

383

385

5.0

380

4.8

5.2

21

383

0

Hanakotoba Odawara

The Tanizawa Sogo
Appraisal Co., Ltd.

946

959

4.9

940

4.8～5.0

5.1

49

947

△1

Verde Minowa

Daiwa Real EstateAppraisal Co., Ltd.

1,700

1,710

5.0

1,690

4.8

5.2

109

1,700

0

Verde Hotaka

Daiwa Real EstateAppraisal Co., Ltd.

1,430

1,440

5.4

1,420

5.2

5.6

91

1,430

0

Sunny Life Kita-Shinagawa

Daiwa Real EstateAppraisal Co., Ltd.

2,040

2,070

4.3

2,020

4.1

4.5

90

2,040

0

Sunny Life Kamakura

The Tanizawa Sogo
Appraisal Co., Ltd.

1,620

1,640

4.4

1,610

4.5

4.6

76

1,580

+40

Nichii Home Nishikokubunji

Daiwa Real EstateAppraisal Co., Ltd.

760

772

4.3

755

4.1

4.5

36

761

△1

SOMPO CARE La vie Re Kobe-ikawadaniRich Appraisal
Institute Co., Ltd.

1,300

1,320

4.3

1,290

4.1

4.5

63

―

+1,300

SOMPO CARE Sompo no ie Sayama

Rich Appraisal
Institute Co., Ltd.

647

656

4.7

643

4.5

4.9

32

―

+647

Royal Kawaguchi

Daiwa Real EstateAppraisal Co., Ltd.

1,310

1,320

4.3

1,300

4.1

4.5

62

―

+1,310NOAH GARDEN LEGENDThe Tanizawa Sogo
Appraisal Co., Ltd.

910

920

5.1

910

5.2

5.3

48

―

+910

NOAH GARDEN L Grace

The Tanizawa Sogo
Appraisal Co., Ltd.

660

660

5.1

660

5.2

5.3

35

―

+660

NOAH GARDEN Season BellThe Tanizawa Sogo
Appraisal Co., Ltd.

1,520

1,530

5

1,520

5.1

5.2

78

―

+1,520Heartland Kawaguchi Meiseien

Japan Real Estate
Institute

2,180

2,190

4.3

2,160

4.1

4.4

100

―

+2,180Granda Minamiurawa

Rich Appraisal
Institute Co., Ltd.

1,100

1,110

4.1

1,090

3.9

4.2

49

―

+1,100

Madoka Minamiurawa

Rich Appraisal
Institute Co., Ltd.

883

893

4.1

879

3.9

4.2

39

―

+883

SOMPO CARE Sompo no ie Awajiekimae

Japan Real Estate
Institute

2,250

2,270

5

2,230

4.8

5.2

116

2,210

+40

SOMPO CARE Sompo no ie Kobekamisawa

Japan Real Estate
Institute

1,390

1,400

5

1,370

4.8

5.2

72

1,360

+30

NOAH GARDEN CASA RICH

The Tanizawa Sogo
Appraisal Co., Ltd.

1,730

1,740

5.1

1,720

5.2

5.3

91

―

+1,730Niigata Rehabilitation Hospital

Japan Real Estate
Institute

2,300

2,310

6.5

2,290

6.3

6.7

153

2,300

0

SHIP SENRI BUILDINGThe Tanizawa Sogo
Appraisal Co., Ltd.

14,20014,4004.5

14,1004.5～4.6

4.7

679

14,200086,36487,256―85,727

―

―

4,378

73,485+12,879

Total
Difference (except The assets acquired in 15th FP)(Note 1)
(Note 2)
(Note 3)

“Appraisal value” is based on the appraisal report with July 31, 2022, as the appraisal date.
“Discount rate” represents a yield used to discount net cash flow during an analysis period and terminal value at the end of an analysis period back to present value. The indicated figures are those used by the respective appraisal organizations. For Hanakotoba
Odawara, the rate is 4.8% for 1 year and 5.0% for 2 years onward; and for SHIP Senri Building, the rate is 4.5% for 1 year and 4.6% for 2 years onward.
“Appraisal NOI” indicates net operating income obtained by direct capitalization method stated in real estate appraisal report with July 31, 2022 as the appraisal date, rounded down to the nearest million yen. In addition, NOI is revenue before deducting depreciationand differs from NCF (net cash flow), which is the amount calculated by adding the gain on investment from security deposits, etc. to NOI and deducting capital expenditures. The same shall apply hereinafter in this document.

+639

46

Ⅴ Appendix

Status of Income/Expenditure of Properties①
Real estate leasebusiness revenue
Property name

(Unit: thousand yen)

Real estate lease business expenses

Rent
Other
revenue revenue

Property tax Outsourcing

RepairexpensesInsurance
expenses

Depreciation
andamortization

Other

15th FPNOI(Note 2)14th FPNOI(Note 2)AQUAMARINE Nishinomiyahama

24,765

4,249

2,100

468

236

17,310400

59,88858,459Bonsejour Chitose-funabashi

5,607

1,813

225

-

119

3,048

401

21,366

21,400

Bonsejour Hino

5,078

1,247

214

-

85

3,130

400

19,496

19,480

Bonsejour Musashi-shinjo

4,126

1,031

167

-

80

2,447

400

16,13816,161

Medical Rehabilitation Home Bonsejour
Hadanoshibusawa

8,399

1,813

213

-

154

5,817

400

21,097

21,106

Medical Rehabilitation Home Bonsejour
Komaki14,137

4,553

201

-

355

8,627

400

39,542

39,571ASHEIM Hikarigaoka

16,645

3,868

381

522

212

11,260400

40,36440,888ASHEIM Bunkyohakusan

12,530

2,572

381

250

129

8,795

400

38,45338,700

SOMPO CARE La vie Re Machidaonoji

48,621

5,945

780

1,959

392

39,144400

95,522

96,69334,224

4,705

780

3,512

285

24,540400

75,52073,997SAWAYAKA Tachibanakan

26,620

2,669

1,200

-

370

21,980400

47,21347,220SAWAYAKA Mekarikan

26,486

2,984

1,200

-

273

21,628400

43,37543,402SAWAYAKA Tagawakan

8,487

1,108

1,200

-

119

5,659

400

12,856

12,858GOOD TIME HOME Fudo-mae

15,164

3,061

600

190

182

10,730400

46,566

46,247

Bonsejour Yotsugi

4,934

950

223

-

73

3,286

400

20,66020,755

Medical Home Bonsejour Itami

6,533

1,390

371

-

111

4,260

400

13,94913,962

Kobe Gakuentoshi Building (Hapine Kobe
Gakuentoshi)

52,509

9,568

900

303

579

40,758400

114,648 114,037

GreenLife Moriguchi

39,791

6,999

1,363

3,220

379

27,428400

107,636 106,767

Hapine Kobe Uozaki Nibankan

9,684

1,393

1,200

122

90

6,478

400

24,294

24,375Granda Tsuruma-Yamato

7,262

1,934

618

-

152

4,158

400

27,14427,052

Smiling Home Medice Adachi

20,140

3,327

540

4,191

177

11,503400

56,57159,064

AIKOEN ICHIBANKAN Building

8,477

2,552

780

-

112

4,632

400

20,564

22,814

Hanakotoba Minami

9,495

1,543

600

1,711

79

5,161

400

26,26525,754

Hanakotoba Miura

9,902

1,555

600

998

88

6,260

400

16,766

SOMPO CARE La vie Re Hama-Kawasaki

18,846

3,463

2,770

113

206

11,891400

45,396

16,676 47

SOMPO CARE La vie Re Azamino

Not disclosed (Note 1)

45,190Ⅴ Appendix

Status of Income/Expenditure of Properties②
Real estate lease businessrevenue
Property nameRent
revenue(Unit: thousand yen)

Real estate lease business expenses

Otherrevenue

Propertytax

Outsourcing

RepairexpensesInsurance
expenses

Depreciation
andamortization

15th FPNOI
Other(Note 2)14th FPNOI(Note 2)

Hanakotoba Shin-Yokohama

17,431

4,413

900

2,926

249

8,543

400

53,02452,450

Hanakotoba Shin-Yokohama II

5,674

2,521

600

-

92

2,061

400

11,198

10,934

Hanakotoba Odawara

9,260

1,393

600

787

99

5,981

400

24,32024,151

Verde Minowa

26,964

5,242

1,020

260

508

19,533400

56,47756,788

Verde Hotaka

26,616

2,211

1,020

1,625

249

21,110400

44,60043,992Sunny Life Kita-Shinagawa

10,185

2,798

600

-

119

6,265

401

45,58045,585Sunny Life Kamakura

12,719

2,769

720

-

179

8,650

400

38,83038,746

Nichii Home Nishikokubunji

4,029

1,220

660

25

92

1,631

400

18,74319,897

SOMPO CARE La vie Re Kobe-ikawadani

10,240

-

750

681

191

8,218

400

35,184

-

3,951

-

750

-

104

2,700

396

17,658

-

8,413

-

1,647

1,097

182

5,087

399

33,874-

SOMPO CARE Sompo no ie Sayama
Royal Kawaguchi

Not disclosed(Note 1)

8,211

-

300

-

130

7,615

165

26,403-

NOAH GARDEN L Grace

6,025

-

300

-

102

5,458

165

19,454-

NOAH GARDEN Season Bell10,107

-

487

-

141

9,206

271

29,325-

Heartland Kawaguchi Meiseien

10,086

-

487

-

148

9,177

271

36,607-

Granda Minamiurawa

4,577

-

325

-

89

4,026

135

18,462-

Madoka Minamiurawa

3,175

-

325

60

71

2,582

135

14,546-

SOMPO CARE Sompo no ie Awajiekimae

28,052

4,903

510

710

298

21,230400

57,63558,215

SOMPO CARE Sompo no ie
Kobekamisawa

16,897

2,912

510

-

183

12,892400

36,28435,800NOAH GARDEN CASA RICH

14,748

-

300

-

238

14,044165

50,074-

Niigata Rehabilitation Hospital

27,754

9,656

1,030

112

387

16,068500

78,19378,294

SHIP SENRI BUILDING

80,48827,640

1,500

-

1,183

49,764400

341,078

341,218

784,089

143,989

34,95625,845

10,093551,793

17,410NOAH GARDEN LEGEND

Total(Note 1)
(Note 2)

2,371,156

2,360,228

10,9282,138,860 1,858,718”Real estate lease business revenue,” “rent revenue” and “other revenue” of each property are not disclosed as consent for disclosure has not been obtained from tenants. The total is the sum of amounts received as rent for
the fiscal period under review based on the lease agreements.
“NOI” = Real estate lease business revenue – Real estate lease business expenses + depreciation and amortization

48

Ⅴ Appendix

Balance Sheet and Income Statement
Balance Sheet(Unit: thousand yen)

Assets14th Fiscal Period
ended January 2022

15th Fiscal Period
ended July 2022

Statement of Income (Unit: thousand yen)

Current assets

2,001,918

1,797,490

Cash and deposits

1,689,721

1,311,232

181,881

297,360

Cash and deposits in trust
Operating accounts receivable

2,081

23,745

Consumption taxes receivable－

41,022

125,455

121,812

2,778

910

Prepaid expenses
Derivative receivables
Other
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Deferred assets
Investment unit issuance costs
Investment corporation bond issuance costs
Total assets

Liabilities

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

－

1,406

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

78,516,016
78,272,804
3,097
240,11444,32428,713
15,61180,357,832

10,016,661

12,020,870

62,19082,3679,250,000

9,250,000－

2,000,000

Accounts payable – other

104,024

34,971

Accrued expenses

240,609247,646

866

913

Income taxes payable

17,631

5,456

Advances received

338,838

398,493

Deposits received

795

126

Derivative liabilities

1,705

895

25,894,748

29,536,057

2,000,000

2,000,000

21,900,000

25,400,000

1,865,509

1,921,309

Consumption taxes payableNon-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in
trust

86,766167,616

Deferred tax liabilities

10,473

11,393

Derivatives liabilities

31,99735,216－35,911,409

521
41,556,928

Other

Total liabilities
Net assets
Unitholders’ capital

32,877,933

38,812,194

Unitholders' capital, net

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

37,701,032
1,111,161△11,290△11,290
38,800,904
80,357,832

Surplus
Valuation and translation adjustments
Deferred gains or losses on hedges
Total net assets
Total liabilities and net assets

Operating revenue

14th Fiscal Period
ended January 2022

2,080,436

15th Fiscal Period
ended July 2022

2,371,156

Leasing business revenues

2,069,514

2,360,228

Other revenue related to leasing business

10,921
1,007,899

10,9281,105,602

Expenses related to leasing business

701,277

784,089

Asset management fee

200,330

203,435

Operating expenses

Asset custody fee
Administrative service fees
Directors’ compensation
Property tax

3,430

3,864

21,551

23,404

4,800

4,800

28,45730,62848,051

55,379

1,072,537
469
6
－
463
159,068

1,265,553
2,048
7
1,566
474
166,555

88,014

93,992

7,800

7,800

6,424

5,742

1,040

1,040

55,789913,938
913,938

57,9791,101,046
1,101,046

Income taxes - current

867

914

Income taxes - deferred

1

△2

868

911

913,069

1,100,134

Other operating expenses

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

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

15,971

11,027929,041

1,111,161

49

Ⅴ Appendix

Information Related to Investment Units
List of Top Unitholders

Status of Unitholders

Ratio of Number of
Investment Unitsby Unitholder Type

Foreign
Other companies
investors
Individuals,
4.3%
8.6%
etc,
25.8%
Securities
companies
Total
5.7%

359,500
units

Ratio of Number ofUnitholders
by Unitholder Type

Securities
companies
0.2%
Financial
institutions
0.3%

Ranking
Other companies
1.4%

Total
15,308peopleForeigninvestors
0.8%

Financial institutions
55.6%

Ownership
ratio
(%)

１

Custody Bank of Japan, Ltd.
(Trust Account)

100,11527.8

２

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

64,74218.0

３

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

14,867

4.1

４

NORTHERN TRUST CO. (AVFC) RE
FIDELITY FUNDS

8,587

2.4

5

Morgan Stanley MUFG Securities Co.,
Ltd.

7,137

2.0

6

JPMorgan Securities Japan Co., Ltd.

4,493

1.2

NEC Capital Solutions Limited

4,000

1.1

SHIP HEALTHCARE HOLDINGS INC.

4,000

1.1

Sumitomo Mitsui Banking Corporation

4,000

1.1

BNYM SA/NV FOR BNYM FOR BNYM
GCM CLIENT ACCTS M ILM FE

3,314

0.9

215,255

59.9(Note)

Individuals,
etc,
97.4%

Name

Number ofinvestment
units owned(units)(Note) Decreased by 182 from the previous fiscal period

Changes in Ratio of Number of Investment Units by
Unitholder Type (most recent 5 fiscal periods)
9.1%
4.9%
4.2%

9.9%
5.0%
4.2%

9.0%
4.9%
5.9%

11.1%
5.1%
2.4%

8.6%
4.3%
5.7%
Foreigninvestors

49.6%

49.6%

49.0%

50.8%

55.6%

Other
companies
Securities
companies

7

Financial
institutions
32.2%

31.3%

31.2%

30.5%

25.8%

11th FP

12th FP

13th FP

14th FP

15th FP

Individuals, etc,

10

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

50

Ⅴ Appendix

HCM’s Investment Philosophy and Three Features
Three Features

Investment Philosophy

Investment in healthcare facilities for which
demand is expected to grow• Increase in demand due to further advancement of aging
Serve as a conduit between the nursing care andmedical service industries and the capital markets

Develop a portfolio specialized inhealthcare facilities, for which
demand is expected to growPromote the supply of healthcare
facilities as social infrastructuresociety• Upgrades and expansion of healthcare facilities backed bygovernment policy

Strong support from sponsors• Utilization of advanced expertise in “nursing care andmedical service,” “fund management” and “finance” heldby SHIP HEALTHCARE, NEC Capital and SMBC

• Securement of property acquisition opportunities byutilizing extensive networks

We seek to realize a society where
all people can live vibrantly andwith peace of mind••

Stable cash flow in the long term
Conclusion of long-term fixed-rent lease agreementswith credible operators
Proper portfolio management based on strong
relationship with operators

51

Ⅴ Appendix

Overview of Unitholder Special Benefit Plan
With the cooperation of operators, we offer unitholder special benefits.
Company Name

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

Proud Life Inc.



Discount initial fee or deposit

Lifecare Design Inc.



Discount initial fee

Nichii Carepalace Company



Discount initial feeTour with free lunchDiscount deposit

Sompo Care Inc.

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

AS PARTNERS Co., Ltd.

NOAH KONZER Co.,Ltd(Note) The special benefits are for unitholders as of the end of July 2022 and are subject to change in the future.

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

Tour with free lunch

52

Ⅴ Appendix

Profile of Asset Management Company
Organizational Structure

Profile of the Company

Trade name

Healthcare Asset Management Co., Ltd.

Location

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

FoundedNovember 28, 2013

Capital stock

150 million yen

CEO

Seiji Yoshioka
SHIP HEALTHCARE HOLDINGS, INC.
NEC Capital Solutions Limited

General Meeting of
Shareholders
Audit & Supervisory
Board Member
Board of Directors

33.3%

Compliance Committee

33.3%

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

Management Committee

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

5.0%

Representative Director

4.8%
4.8%

Internal Audit OfficeCompliance Office

4.7%
4.7%
4.7%
4.7%

Investment
Department

Asset
Management
Department

Healthcare
Business
Promotion
Department

Financial &Administration
Department

Registered as a financial service provider
Director of Kanto Local Finance Bureau (Kinsho) No. 2815
Registration,
license, etc.

License as a building lots and buildings business operator
Governor of Tokyo (2) No. 96339
License as an entrusted agency services for transactions
Minister of Land, Infrastructure, Transport and Tourism No. 85

53

Ⅴ Appendix

Profile of Major Sponsors
SHIP HEALTHCARE HOLDINGS INC.
With a stated mission to “create an environment of people protecting life,”
SHIP HEALTHCARE HOLDINGS, INC. focuses on the five business domains of
medical, health, welfare, nursing care and services. Centering around thepartnership with medical institutions, the entire group companies carry out avariety of nursing care and medical service-related businesses, ranging fromconsultation on reconstruction, development, etc. of hospitals and such tooperation of nursing homes and dispensing pharmacy business.

Headquarters
location

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

Representative

Chairman: Kunihisa Furukawa
President: Futoshi Ohashi

FoundedAugust 1992

Capital stock

15,553 million yen

Sales514,353 million yen on a consolidated basis(fiscal period ended March 2022)

NEC Capital Solutions Limited

As the NEC Group's comprehensive financial services company, NEC Capital
Solutions Limited delivers finance services such as leasing and installment
payments to a broad customer base. In addition, it offers investments, loans,
and advisory services through funds, etc. in the business domains of“companies,” “credits,” and “assets,” mainly through its subsidiary, RISA
Partners, Inc.

Headquarters
location

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

Representative

President: Masaaki Suganuma

FoundedNovember 1978

Capital stock

3,776 million yen

Sales

230,196 million yen(fiscal period ended March 2022)

Sumitomo Mitsui Banking Corporation

Positioned as the core company of the SMFG, SMBC possesses one of thestrongest sales foundations in Japan as well as the ability to executestrategies quickly, and is capable of providing financial services through its
influential group companies. Furthermore, it boasts one of the strongest
track record in Japan for financing listed real estate investment corporations.

Headquarters
location

1-1-2 Marunouchi, Chiyoda-ku, Tokyo

Representative

President and CEO: Makoto Takashima

Capital stock

1,770,996 million yen

54

Disclaimer
This presentation material contains forward-looking statements including forecasts,
outlooks, goals and plans. These statements are based on the information
available as of the date when this material is prepared (September 14, 2022) andincorporate certain subjective assumptions about uncertain factors that may affectfuture results. Accordingly, these statements are inherently not guarantees of
future performance and actual results may differ materially.
The opinions, outlooks and estimates contained in this material reflect our viewand judgment based on information as of the date when this material is preparedand involve risks and uncertainties.
No guarantee is made as to the accuracy, completeness, appropriateness andvalidity of information contained in this material. It is not promised that
information contained in this material will always be updated.
Contents of this material are subject to change without notice.
This material is not intended as a solicitation for investment. Any investment
decision must be made based on your own judgment and responsibility.

55