Sekisui House SI Investment Corporation
Business Results for the 13th Fiscal Period
May 17, 2012

Sekisui House SI Investment Corporation
Business Results for the 13th Fiscal Period
From Oct. 1, 2011 to Mar. 31, 2012

8973

Contents
1. Overview of the Thirteenth Fiscal Period Ended
March 31, 2012

4. Forecasts for the Fourteenth Fiscal Period Ending
September 30, 2012 and Current Management Policy

・Progress Highlights

4・Forecasts for the Fourteenth Fiscal Period

27

・Progress of Growth Strategy for a New Stage

5・Current Management Policy

28

・Summary of Business Results for Thirteenth Fiscal Period

6・Changes to the Management Guidelines and Rules forTransactions with Interested Parties

29

・Difference between Thirteenth Fiscal Period CashDistributions Per Unit and Initial Forecast

7

・[Reference] Fifth General Meeting of Unitholders

30

・Occupancy Rates and NOI Yield

8

2. Portfolio Management Status of the Thirteenth Fiscal
Period Ended March 31, 2012

5. Appendix
・Balance Sheets

32

・Business Results Summary of the Thirteenth Fiscal Period

10・Statements of Income

34

・Changes in Asset Size After Change of Sponsors

11・Statements of Cash Flows / Cash Distributions

35

・Ensuring Opportunities for Stable Property Acquisitions

12・Summary of Selected Financial Data

36

・Properties Acquired in the Thirteenth Fiscal Period

13

・History of the Investment Corporation since Listing

37

・Acquisition of Equity Interest in Silent Partnerships

14

・Portfolio Map

38・Overview of Replacement of Assets Under Management

16・Status of Portfolio

40

・Purpose of Partial Sale of HAMAMATSU Plaza

17

・Portfolio at a Glance

43・Improvement of Portfolio Quality

18

・Major Financial Indicators Concerning Interest-Bearing Debt

46

・Occupancy and Rent Trends

19・Overview of Unitholders as of March 31, 201247

・Changes in Unrealized Loss Ratio, Etc.

22

・Historical Investment Unit Price48

3. Financial Activities of the Thirteenth Fiscal Period
Ended March 31, 2012
・Initiatives to Promote Stabilizing of Financial Standing

24

・Overview of Interest-Bearing Debt as of March 31, 201225
2

1. Overview of the Thirteenth Fiscal Period
Ended March 31, 2012

プライムメゾン東桜
MAST HAKATA

Progress Highlights
Thirteenth Fiscal Period (Ended March 31, 2012)
Announced the transition to Phase II of “Growth Strategy for a New Stage” in November 2011
Beginning of measures to enhance profitability by significantly increasing asset size
Initial forecast
for cashdistribution
per unit

Actual cash
distribution
per unit: ¥10,150: ¥10,117

Maintained distributions at the 10,000 yen level
though falling short of initial forecast due to loss
on sale from the partial sale of HAMAMATSU Plaza

Main Business Results
External growth results

Internal growth results

Enhancement of residential portfolio

Maintained high occupancy rates forboth residences and retail facilities

Period-end
residential ratio

Owned residential
properties

Period-end
occupancy rate

Average occupancy
rate during period

80.0 %

52 (of 60 properties)

98.3 %

97.4 %

Note: Figure is as of the thirteenth fiscal period end.

Note: Figure is for the entire portfolio as of the thirteenthfiscal period end.

Financial results
Maintained stability of financial
standing
Ratio of fixed rate Ratio of longterm liabilities
loans payable

65.5 %

76.0 %

LTV

51.5 %

Note: Figures represent interest-bearing debt and are asof the thirteenth fiscal period end.

Fourteenth Fiscal Period (Ending September 30, 2012)
Forecast cash distribution
per unit for the fourteenthfiscal period ending
September 30, 2012:¥10,150

Projected that cash distributions at
the 10,000 yen level will also be
maintained for fourteenth fiscal
period ending September 30, 2012

Promote the measures of Phase II inorder to continue maintaining andimproving the cash distribution level4

Progress of Growth Strategy for a New Stage“Growth Strategy for a New Stage” Announced in May 2010

Phase IManagement Policy: Prioritize the promotion ofstabilizing our financial standing
Strategic Goal: Aim to recover 6-month cash
distributions to the 10,000 yen level at an early stage

Phase IIManagement Policy: Enhance profitability by significantly increasing asset size
Strategic Goal: Aim to grow earnings based on doubling of asset size to 200 billion yen with due
consideration given to cash distribution level

Tenth Fiscal Period (Ended September 30, 2010)~Twelfth
Fiscal Period (Ended September 30, 2011)

Began Phase II in the thirteenth fiscal period (ended March 31, 2012)

Promoting measures which prioritize thestabilization of the financial standing

Promoting measures under further strengthening ofcollaboration with sponsors

Financial Strategy• Add high quality residential properties to the portfolio• Discuss utilizing the warehousing function of thesponsors

External Growth Strategy
Newly acquire 5 residential properties
including the 3 Prime Maison properties
from Sekisui HouseInternal Growth Strategy
Assign the Sekiwa Real Estate Group which
is a fully owned subsidiary of Sekisui House
as the property management company

Transition
to Phase II

Internal Growth Strategy• Utilize Sekiwa Real Estate Group as the property
management company of residential properties acquired
from the sponsors• Increase the value of retail facilities
Financial Strategy• Enhance our financial standing by implementing
public offerings at an appropriate timing, size andstructure• Discuss diversifying financing methods

Aim to build a portfolio centering on
high-quality residential properties

External Growth Strategy

Promote measures including the release ofcollateral security from assets, and arriving
at the target level given as the financial
strategy

Twelfth fiscal period (ended Sep. 30, 2011)
Attained the strategic goal of Phase I
5

Summary of Business Results for Thirteenth Fiscal Period◇ Factors for differences between actual results andforecasts for the fiscal period ended March 31, 2012

Comparison with Forecasts
Forecasts for Fiscal
Fiscal Period Ended
Period Ended Mar. 31,
Mar. 31, 20122012 (announced on Nov.
(183 days) (Actual)
14, 2011)
Operating revenue¥3,557 million¥3,705 million

・ Operating income

Difference

Operating revenue¥147 million

4.1%

Operating income¥1,615 million¥1,600 million-¥15 million-0.9%

Ordinary income¥1,168 million¥1,165 million-¥3 million-0.3%

Increase in rent revenue:+¥65 million

Increase in other lease business revenue:+¥21 million

Gain on sales of real estate properties:+¥60 million

Operating expenses
Decrease in expenses related to rent business:

Net income
Cash distributions
per unit¥1,167 million¥1,164 million-¥3 million-0.3%¥10,150¥10,117

-¥33

-0.3%

¥3,705 million¥171 million

4.9%

Operating income¥1,622 million¥1,600 million-¥21 million-1.4%

Ordinary income¥1,156 million¥1,165 million¥8 million

0.8%

Net income¥1,155 million¥1,164 million¥8 million

0.7%¥10,045¥10,117¥72

0.7%

Total assets¥109,664 million¥112,800 million¥3,135 million

Interest-bearing debt

¥54,032 million¥58,073 million¥4,040 million

Net assets¥51,679 million¥51,687 million¥8 million¥286,400¥347,000

115,070 units

115,070 units

Period-end market value¥32,956 million¥39,929 million

Cash distributions¥1,155 million¥1,164 million

Notes: 1. Amounts less than the indicated unit are rounded down.

Decrease in other business expenses:-¥17 million-¥11 million◇ Factors for period-on-period changes to actual results
for the fiscal period ended March 31, 2012

Change¥3,533 million

Period-end investment unit
price
Number of investment units
issued and outstanding+¥187 million

Decrease in non-operating expenses:

Operating revenue

Cash distributions per unit

Loss on sales of real estate properties:

・ Ordinary income

Comparison with Previous Fiscal Period
Fiscal Period Ended Fiscal Period Ended
Sep. 30, 2011
Mar. 31, 2012(183 days) (Actual) (183 days) (Actual)-¥6 million

・ Operating income
Operating revenue
Increase in rent revenue:+¥109 million

Increase in other lease business revenue:+¥2 million

Gain on sales of real estate properties:+¥60 million

Operating expenses
Decrease in expenses related to rent business:-¥13 million

Loss on sales of real estate properties:+¥187 million

Increase in other business expenses:+¥20 million

・ Ordinary income
Decrease in non-operating income:-¥1 million

Decrease in non-operating expenses:-¥32 million

2. Percentage figures are rounded to the nearest first decimal place.

6

Difference between Thirteenth Fiscal Period Cash Distributions Per Unit and Initial Forecast
Variable Factors from Initial Forecast
Impact on cash
distributions per unit

Variable factors (comparison to initial forecast)Ⓐ Partial sale of HAMAMATSU Plaza

Loss on sale: Approx. ¥187million-¥1,625Ⓑ Sale of Spacia MEGUROFUDOMAE

Gain on sale: Approx. ¥60 million+¥523

Increase in real estate leasing business revenues: Approx. ¥27 millionⒸ

New acquisitions of 3 residential
propertiesⒹ Operating conditions and otherAcquired on Feb. 1, 2012: MAST HAKATA, PLATINUM COURT KINSHICHO(Approx. 2 month contribution to revenues)
Acquired on Mar. 2, 2012: Clarte MUSASHIKOGANEI Residence(Approx. 1 month contribution to revenues)+¥236

Increase in real estate leasing business revenues of existing owned properties, decreasein other operating expenses, etc.: Approx. ¥95million+¥833

Variable Factors from Initial Forecast for Thirteenth Fiscal Period (Ended March 31, 2012) Cash Distributions Per Unit
¥11,000

Decrease from partial sale of HAMAMATSU Plaza

+¥833
+¥236

¥10,000

+¥523

Ⓐ

Ⓑ

¥9,000

Increase from operating
conditions and other

Initial forecast for cash
distribution per unit
¥8,000-¥1,625¥10,150ⒹⒸ

Increase from new acquisition of 3
residential properties

Actual cash
distribution
per unit¥10,117

Increase from sale of Spacia MEGUROFUDOMAE¥7,000¥6,000¥5,000(Announced on Nov. 14, 2011)(Announced on May 16, 2012)7

Occupancy Rates and NOI Yield
Monthly Occupancy Rates at a Glance
Residential

Retail

Total
98.3%

100%
96.6%

96.9%

97.3%

96.6%

95%

90%

85%

80%

75%
Mar. Apr.
2010
End of NinthFiscal Period

May

Jun.

Jul.

Aug. Sep.

Oct.

Nov. Dec.

End of TenthFiscal Period

Jan. Feb. Mar. Apr.
2011
End of Eleventh
Fiscal Period

May

Jun.

Jul.

Oct.

Nov. Dec.

Jan. Feb.
2012

End of Twelfth
Fiscal Period

Occupancy Rates

Mar.

End of Thirteenth
Fiscal Period

NOI Yields

Fiscal period ended March 31, 2012 (thirteenth fiscal period)
As of March 31, 2012

Aug. Sep.

Average for thirteenth fiscal period(Oct. 1, 2011 through Mar. 31, 2012)

Fiscal period ended March 31, 2012
(thirteenth fiscal period)
5.2%

Residential

97.1%

96.7%

Retail

99.8%

98.0%

5.3%

Total

98.3%

97.4%

5.2%

Notes: 1. “Occupancy Rates” indicated in the graph describe the rate of total leased space to the total leasable space for assets held by the Investment Corporation as of the end of each month from March 2010 to March 2012.
2. The average occupancy rate for the thirteenth fiscal period ended March 31, 2012 indicates the average of occupancy rates as of the end of each month for the fiscal period from Oct. 1, 2011 through Mar. 31, 2012.
3. The NOI yield in the table is obtained by dividing the annualized NOI for the fiscal period from Oct. 1, 2011 through Mar. 31, 2012 by the total acquisition price .
4. Percentage figures are rounded to the nearest first decimal place.

82. Portfolio Management Status of the Thirteenth
Fiscal Period Ended March 31, 2012

プライムメゾン東桜
MAST HAKATA

Business Results Summary of the Thirteenth Fiscal Period
Focus on external growth strategy in the thirteenth fiscal period where Phase II begins
in order to “enhance profitability by significantly increasing the asset size”~Steadily promote increasing the investment ratio of residences which have a relatively more stable cash flow ~Development of property acquisition channels and increase opportunities for acquisitions

Improvement of portfolio quality① Conclusion of Pipeline Support Agreement③ Investment in silent partnerships④ Replacement of assets under management

Concluded Pipeline Support
Agreement with 4 companies
including Sekiwa Real Estate
which are the members of thesponsor group

Secured preferential negotiation rights
for property acquisitions through equity
interest in silent partnerships[Sold properties]

Total 15
properties

February 1, 2012
residential
ratio at endof twelfth
fiscal period

Part of “HAMAMATSU Plaza”“Spacia MEGUROFUDOMAE”

March 2, 2012

72.6%

4 Prime Maison properties

80.0%
residential
ratio at end of
March 30, 2012
April 2, 2012
thirteenthfiscal period (start of fourteenthfiscal period)

February 21, 2012

January 11, 2012

[Acquired properties]

Increase of asset size
② Acquisition of 3 new properties from various channels
・Acquired ”MAST HAKATA” from
Sekiwa Real Estate Kyushu
・Acquired “PLATINUM COURTKINSHICHO” throughinformation provision of Spring
Investment

Maintaining favorable occupancy rate
for the entire portfolio, existing and new properties alike・Acquired “Clarte
MUSASHIKOGANEIResidence” utilizing uniquechannel of the AssetManagement Company

Realized increase ofinvestment ratio of
residences

Average occupancy rate during the fiscal period:
Improved 1.0 point from previous fiscal period
10Changes in Asset Size After Change of Sponsors
Total acquisition price of 105,806 million yen at the point after completion of
replacement of assets under management (as of April 2, 2012)
Tenth Fiscal Period ~ Twelfth Fiscal Period
Acquired ineleventh fiscal period

Maintained approximately the same asset size level as at theend of the twelfth fiscal period (ended Sep. 20, 2012)
Fourteenth Fiscal Period

Thirteenth Fiscal Period
Sold inthirteenth fiscal period

Acquired in
twelfth fiscal period

Acquired in
fourteenth fiscal period

Acquired inthirteenth fiscal period

Announced on March 21, 2012

Replacement of assets under management
428 million yen decrease fromend of twelfth fiscal period(increase of 6 properties)

Total acquisition
price(million yen)

110,000
103,974(57 properties)

100,000

99,920(53 properties)

106,234(58 properties)

90,0004,054

Acquired in eleventh fiscal
periodPrime Maison
MUSASHINONOMORI
Prime Maison
HIGASHISAKURA
Prime Maison
KAYABAKOEN
Tre Di Casa SANGENJAYA

80,00070,000Sep. 30, 2010(End of TenthFiscal Period)-9,6482,260
Acquired in twelfth
fiscal period
Mitezza C6Mar. 31, 2011(End of Eleventh
Fiscal Period)

105,806(64 properties)

4,420
101,006(60 properties)

Sold in thirteenth fiscal period
Part of HAMAMATSU Plaza
Spacia MEGUROFUDOMAE

From acquisition of 4
Prime Maison properties
Prime Maison GOKISO
Prime Maison
YUHIGAOKA
Prime Maison
KITATANABE
Prime Maison
MOMOCHIHAMA

Acquired in thirteenthfiscal period
MAST HAKATA
PLATINUM COURTKINSHICHO
ClarteMUSASHIKOGANEIResidence

Sep. 30, 2011(End of Twelfth
Fiscal Period)

Feb. 1, 2012 ＋ Mar. 2,
2012

4,800

Mar. 30, 2012

Mar. 31, 2012(End of Thirteenth
Fiscal Period)

Apr. 2, 2012

As of the date of thisdocument (after
replacement of assets
under management)

11

Ensuring Opportunities for Stable Property Acquisitions
Further Development of Property Acquisition Channel of Sekisui House Group
Concluded Pipeline Support Agreements with four fully owned subsidiaries of Sekisui House including Sekiwa Real Estate in addition to thetwo sponsors to acquire residential properties[Overview of Pipeline Support Agreements and system for acquiring property information]
Parties

Concluded on March 8, 2010

Sekisui House

SpringInvestment

Sekiwa Real
EstateSekiwa Real Estate
Chubu, Kansai andKyushuGranting preferential negotiationrights for owned properties, etc.

○

-

○

○

Provision of information concerning
properties owned by third parties

○

○

○

-

Preferential provision of information
concerning sale of properties inconnection with discretionary
investment business andinvestment advisory business

-

○

-

-

Main contents

Asset management company

Concluded on January 11, 2012

Sekisui House SI Asset Management
Unique channel

SponsorSponsor
Pipeline

Pipeline

Sekisui House

SpringInvestment

Pipeline

Sekisui House’s fully owned subsidiaries* The official name for the agreement with Sekisui House and Sekiwa Real Estate is “Agreement Concerning Preferential
Negotiation Rights, Etc.," that with Spring Investment “Agreement Concerning Preferential Provision of Property Information," andthat with Sekiwa Real Estate Chubu, Kansai and Kyushu “Agreement Concerning Preferential Negotiation Rights."

Sekiwa Real Estate, Sekiwa Real Estate Chubu, Sekiwa
Real Estate Kansai, Sekiwa Real Estate Kyushu[Reference] Rental Housing Properties Owned by Sekisui House and Rental Housing Properties Under Development
Owned Rental Housing Properties (Note 1)

Residencia
Ginza East
Chuo-ku, Tokyo

Prime Maison Gotenyama
WEST
Shinagawa-ku, Tokyo

Rental Housing Properties
Under Development

Prime Maison
Yadaminami
Nagoya-shi. Aichi

Prime Maison
TERIHA
Fukuoka-shi, Fukuoka

With its philosophy of “permanent residential quality” and “placing residents first,” leading residential property developer Sekisui House owns
urban rental condominiums which are high-quality and score high in tenant satisfaction, including the Prime Maison Series that the company
has either planned, developed or invested in with its know-how gained from years of working with for-sale condominiums.

(Tentative name) Prime
Maison HATCHOBORI
Chuo-ku, Tokyo(Notes 1 and 2)(Tentative name) Prime
Maison WASEDA
Shinjuku-ku, Tokyo

Properties located in Central Tokyo forwhich the Asset Management Company isalso participating in development meetings

Notes: 1. There are no specific plans to acquire these properties. 2. Images are renderings based on design documents and may differ from the actual buildings.

12

Properties Acquired in the Thirteenth Fiscal Period
Acquired 3 residential properties in Major Regional Cities and Greater Tokyo / Adjoining Cities by utilizing various property acquisition
channels
Residence – 55

First acquisition from Sekiwa Real Estate Group – Property developed by Sekiwa Real Estate Kyushu

MAST HAKATA

Acquisition priceHakata Ekimae, Hakata-ku, Fukuoka-shi,
Fukuoka

Location

Completed

January 2005

Main residential
type

Family type

Construction and
SRC, 14F
number of floors

Total leasable
floor space

9,614.80m2

Site area

2,457.01m2

Total number ofleasable units

156

Total floor area

11,621.67m2

Acquisition dateFebruary 1, 2012

1,920 million yen
Closest station
Appraisal value (Note)
1,950 million yen(As of Jan. 1, 2012)
Appraised NOI yield(Note)

7.1%
Residence – 56

Acquisition based on property information from Spring Investment

PLATINUM COURT KINSHICHO

Acquisition price

Location

Kinshi, Sumida-ku, Tokyo

1,050 million yen

Appraised NOI yield (Note)

5.7%
Residence – 57

Construction andRC, 10F
number of floors

Total leasable
floor space

1,611.54m2

Site area

338.57m2

Total number ofleasable units

54

Total floor area

1,718.10m2

Acquisition dateFebruary 1, 2012

Acquisition utilizing unique channel of the Asset Management Company
Location

1,450 million yen
Closest station

Appraisal value
1,570 million yen(As of Jan. 1, 2012)
Appraised NOI yield (Note)

6.1%

September 2006
Single / Compact type

Clarte MUSASHIKOGANEI Residence

Acquisition priceApprox. 7 min. walk from Kinshicho stationon the JR Sobu Main Line

Completed
Main residential
type

Closest station
Appraisal value (Note)
1,123 million yen(As of Jan. 1, 2012)

Approx. 11 min. walk from Hakata Station on
the JR Kagoshima Main Line

Honcho, Koganei-shi, Tokyo
Approx. 2 min. walk from Musashi Koganei
station on the JR Chuo Line

Construction and
SRC/RC, 13F/B1F
number of floors

CompletedFebruary 2005

Main residential
type

Single type

Total leasable
floor space

2,275.24m2

Site area

520.25m2

Total number ofleasable units

96 (excluding 1 store)

Total floor area

2,676.36m2

Acquisition date

March 2, 2012

(Note) The appraisal values of MAST HAKATA and PLATINUM COURT KINSHICHO in the thirteenth fiscal period ended March 31, 2012 has fluctuated. For details please refer to p. 45. Also, appraised NOI Yields arecalculated by dividing the NOI based on the real estate appraisal value as of January 1, 2012 by the acquisition price. Figures are rounded to the nearest first decimal place.

13

Acquisition of Equity Interest in Silent Partnerships (1)Overview of Silent Partnerships
Ensuring preferential negotiation rights for property acquisitions by acquiring equity interest in silent partnerships backed by highquality rental residences
Features of real estate in trust

Overview of silent partnerships

All 15 properties in Tokyo’s 23 wards (Note 1)

GK AQUA 1

Central Tokyo / Jonan Area:
42.8%
Greater Tokyo / Adjoining Cities: 57.2%
Average property age of 2.4 years

Under 2 years:
2 years to under 3 years:(Note 2)

16.9%
70.0%

55.4 % within 5 min. from nearest station (Note 1)

Within 3 min.:
3 min. to within 5 min.:
Mainly single and compact types

Under 30m 2:
30m 2 to 50m 2:

19.3%
36.1%

Nonrecourse loans
Trust beneficiaryinterest in realestate, etc.
¥20,580 million¥16,000 million
Equity interestin silent
partnerships¥4,580 million

Until February 22, 2016

Total value of equity
interest in silent
partnerships, etc.

¥4,580 million

Asset manager

Mizuho Trust & Banking, Co., Ltd.

Major investors

Sekisui House SI Investment
Corporation, Sekisui House,
Spring Investment, etc.

Investment of ¥200 million in silent partnerships (investment ratio: 4.4%)(Note 3)

61.5%
22.9%

Silent partnershipcontract valid period

Acquisition of preferential negotiation rights

Receives profits from dividend income distributed as rent
revenues of real estate in trust, according to investment ratio

Content of preferential negotiation rights
The right to conduct prioritized negotiations for property acquisitions through sending notifications of intent to purchase real estate in trust
until the end of January 2014
The right to seek acquisition on certain conditions such as the desired purchase price being above the minimum (¥19,650 million) unlessthere are rational reasons

Increasing opportunities for acquiring high-quality residential properties – Expectations for future enhancement of the portfolio
Notes: 1. Percentages are calculated based on the real estate in trust’s appraisal values as of January 1, 2012 and are rounded to the nearest first decimal place.
2. The average property ages are the result of calculating the weighted average using appraisal values of the real estate in trust and with March 31, 2012 as the reference date, and are rounded down to thenearest first decimal place. Furthermore, the percentages are rounded to the nearest first decimal place.
3. Percentages are calculated based on the number of residential units at the real estate in trust and are rounded to the nearest first decimal place. Shops are not included.

14

Acquisition of Equity Interest in Silent Partnerships (2)Overview of real estate in trust (appraisal values as of January 1, 2012)
No. of properties

Total of appraisal values

Total value of minimum acquisition prices forpreferential negotiation rights

Average appraised NOI yield

15 properties

20,210 million yen

19,650 million yen

5.5 %

Photo

Property name

PLUS
MUSASHIKOYAMAPLUS NAKANO

PLUS SENGOKU

PLUS SHINNAKANO

PLUS TETSUGAKUDO

PLUS AKABANE

PLUS DAIZAWA

PLUS OJI

Location

Shinagawa-ku, Tokyo

Nakano-ku, Tokyo

Bunkyo-ku, Tokyo

Nakano-ku, Tokyo

Nakano-ku, Tokyo

Kita-ku, Tokyo

Setagaya-ku, Tokyo

Kita-ku, Tokyo

CompletedMay 2009

June 2009

August 2009

October 2009

October 2009

November 2009

February 2010

July 2010

Appraisal value¥871 million¥1,570 million¥1,130 million¥887 million¥1,040 million¥2,740 million¥1,870 million¥1,390 million

Photo

Property name

PLUZ NAKANOFUJIMICHO PLUZ TORITSU-DAIGAKU

PLUZ KOENJI

PLUZ HIGASHI SHINJUKUPLUZ TOGOSHIPLUZ MOTOAZABUPLUZ OSHIAGE

Location

Nakano-ku, Tokyo

Meguro-ku, Tokyo

Suginami-ku, Tokyo

Shinjuku-ku, Tokyo

Shinagawa-ku, Tokyo

Minato-ku, Tokyo

Sumida-ku, Tokyo

CompletedFebruary 2009

February 2009

March 2009

April 2009

June 2009

November 2009

April 2010

Appraisal value¥891 million¥751 million¥1,010 million¥1,400 million¥1,410 million¥1,220 million¥2,030 million(Note) The average appraised NOI yield is calculated by dividing the NOI based on the real estate appraisal of the real estate in trust by the total value of the minimum acquisition prices for preferential negotiation rights, and is rounded to the nearest firstdecimal place. Also, though the Investment Corporation and the Asset Management Company are granted preferential negotiation rights for real estate in trust, etc., it is not determined that the real estate in trust, etc. will be purchased at the total of theminimum acquisition prices and therefore the actual acquisition prices may differ. Accordingly, there is a possibility that the average appraised NOI yield calculated based on the actual acquisition prices will fluctuate.

15

Overview of Replacement of Assets Under Management
Conduct replacement of assets under management throughthe strong sponsor support of the Sekisui House Group

Construct a portfolio centering on high-quality residential
properties – Promote improvement of the portfolio’s quality

Sold on March 30, 2012 (thirteenth fiscal period)

Acquired on April 2, 2012 (fourteenth fiscal period)

Sale including part of HAMAMATSU Plaza, the largest property

Acquired 4 Prime Maison properties planned, developed andowned by Sekisui House― Buyer −Sekisui House
Sekiwa Real Estate(Fully owned subsidiary of
Sekisui House)

Replacement― Sold assets −― Seller ―Part of HAMAMATSU Plaza(Retail facility)
Sekisui House
Spacia MEGUROFUDOMAE(Residence)

Overview of sold assets

Residence – 58

Book value (Note)¥8,721 million

Appraisal value (Note)¥7,339 million

Reducedconcentration of risk
at largest property(Note) The book value is as of the date of the transaction and the appraisal value is as of March
1, 2012.
Residence – 9

Spacia MEGUROFUDOMAE¥790 million

Book value (Note)¥724 million

Appraisal value (Note)¥776 million

Residence – 59

(Note) The book value is as of the date of the transaction and the appraisal value is as ofMarch 16, 2012.

(Osaka-shi, Osaka)

Acquisition price¥1,640 million

Acquisition price¥810 million

Appraisal value(Note)¥1,670 million

Appraisal value(Note)¥829 million

Completed

Oct. 28, 2008

CompletedFeb. 16, 2007

Prime Maison KITATANABE(Osaka-shi, Osaka)

Reduced impact on
distributions frompartial sale of
HAMAMATSU plaza

Prime Maison YUHIGAOKA(Note) Appraisal values are as of March 1, 2012.
Residence – 60

(Meguro-ku, Tokyo)
Sale pricePrime Maison GOKISO(Nagoya-shi, Aichi)(Hamamatsu-shi, Shizuoka)¥8,580 millionAll
residences

Overview of acquired assets

Part of HAMAMATSU Plaza (part of east area and all of west area)

Sale pricePrime Maison GOKISO
Prime Maison YUHIGAOKA
Prime Maison KITATANABE
Prime Maison MOMOCHIHAMA

Total acquisition price: 4,800 million yen

Total sale price: 9,370 million yen

Retail - 1― Acquired assets −Residence – 61

Prime Maison MOMOCHIHAMA(Fukuoka-shi, Fukuoka)

Acquisition price¥540 million

Acquisition price¥1,810 million

Appraisalvalue( Note)¥551 million

Appraisal value(Note)¥1,820 million

Completed

Jun. 13, 2006

CompletedFeb. 29, 1996

(Note) Appraisal values are as of March 1, 2012.

16

Purpose of Partial Sale of HAMAMATSU Plaza
Issues at HAMAMATSU Plaza

Development of Cooperative System with Sekisui House

Recent Management Status

Situation of Ownership after Partial Sale of HAMAMATSU Plaza (Image)

Average NOI
yields during
the period
Occupancy
rates as ofMarch 29, 2012(day before
transaction
date)

Twelfth Fiscal Period

4.6% (183 management
days)

Thirteenth Fiscal Period

5.0% (183 managementdays) (Note)

Entire HAMAMATSU Plaza

96.2%

Hamamatsu Plaza East100%

Hamamatsu Plaza West

84.0%

(Note) As the Investment Corporation continues to hold quasi-co-ownership of Hamamatsu Plaza East even after the partial
sale, the number of management days for the thirteenth fiscal period is 183. For Hamamatsu Plaza West whose ownership
was fully transfered, the number of management days is 181.

[Reference] Acquisition Price of Entire HAMAMATSU Plaza, Etc.
Acquisition price¥15,360 million (acquired in July 2005)

Book value¥14,742 million (as of transfer date)

Appraisal value¥12,970 million (as of March 1, 2012)

The occupancy rate which had at one point fallen to 88.1% recovered to96.2% by the day before the transaction date (vacant compartments: approx.
948 tsubos)
Additionally, the average NOI yield during the fiscal period recovered to 5.0%
in the business results of the thirteenth fiscal period due to strengthened
leasing measures, etc.
On the other hand, the vacancy periods of vacant compartments have been
extended at Hamamatsu West building.

Mid- to Long-Term Outlook Assuming Current Status MaintainedConcerns of increase in cost of repairs, etc. withthe aging of the buildings

Hamamatsu Plaza East

Complete ownership
Sekisui House

51% quasi-co-ownership 49% quasi-co-ownership
Sekisui House SI
Sekisui House
Investment Corporation

Promoting mid- to long-term management strategies
through co-ownership with Sekisui House

Effects of Replacement of Assets Under Management

Our Understanding of Current Issues

Concerns of increased pressure from existing
tenants for decreased rents or cancellations

Hamamatsu Plaza West

Concerns of future
decline ofprofitability

Average of sold assets

Average of 4 Prime Maison properties

Actual thirteenth fiscal period
results average NOI yield

Average appraised NOI yield

4.6%(Based on acquisition prices)

Increased
NOI yield

Average property age

15.7 years(As of transfer date)

Average property age
Decreasedage

Total leasable spaces / units

26 spaces / 41 units(As of transfer date)

6.2%(Based on acquisition prices)

8.7 years(As of acquisition date)

Total leasable units
Diversified
tenants

210 units(As of acquisition date)17

Improvement of the Portfolio Quality
Trends in Indicators
Promoting further stabilization of the portfolio by increasing the ratio of residences and reducing concentrated risk at HAMAMATSU Plaza
through new acquisitions and replacement of assets under management
Average Property Age

Investment Ratios by Asset Class

Decreased property age for entire portfolio by 0.1 years

Increased ratio of residences by 8.3 points(compared to twelfth fiscal period end)

(compared to twelfth fiscal period end)

RetailAfter replacementof assets

Residential

100%

27.4%

20.0%

19.1%

80.0%

80.9%

(years)Residential
12.0 years

10.3 years

10.2 years

7.0 years

8

72.6%

After replacementof assets

Portfolio overall

10

75%

50%

Retail12

6

6.9 years
6.0 years

5.5 years

6.7 years

6.3 years

425%

Decreased overall portfolio age

Increasing ratio of residences and decreasing ratio of retail200%12th fiscal period end(Sep. 30, 2011)

13th fiscal period end(Mar. 31, 2012)

12th fiscal period end(Sep. 30, 2011)

14th fiscal period(date of this document)

Ratio of HAMAMATSU Plaza against the Entire Portfolio

100%

HAMAMATSU Plaza

Other

6.4%

14.5%

14th fiscal period(date of this document)

Total Price of Acquisitions from Sekisui House Group

Decreased ratio of HAMAMATSU Plaza by 8.4
points (compared to twelfth fiscal period end)
After replacementof assets

13th fiscal period end(Mar. 31, 2012)

Increased acquisitions from Sekisui House Group by ¥6,720 million(compared to twelfth fiscal period end)

(million yen)

12,000Total price of acquisitions from Sekisui …

After replacementof assets

6.1%

75%

9,000
Decreased concentrated risk at HAMAMATSU Plaza, the largest property

Strengthened cooperation with Sekisui House Group¥10,060 million

50%

93.6%

93.9%

(8 properties)

6,000

85.5%

¥5,260 million

25%

3,000

(4 properties)¥3,340 million(3 properties)

00%12th fiscal period end(Sep. 30, 2011)

13th fiscal period end(Mar. 31, 2012)

14th fiscal period(date of this document)

12th fiscal period end(Sep. 30, 2011)

13th fiscal period end(Mar. 31, 2012)

14th fiscal period(date of this document)

Notes: 1. Figures as of the date of this document include the trust beneficiary interest in domestic real estate (Prime Maison GOKISO and 3 other properties) of whose acquisitions were completed on April 2, 2012.
2. Figures in the indicators are calculated based on the acquisition prices of the assets. Percentage figures are rounded to the nearest first decimal place. Average property ages are rounded down to the first decimal place.

18

Occupancy and Rent Trends [Residential (1)]Changes in Occupancy Rates

Occupancy by Floor
Area

Continuing to maintain stable and high occupancy rates for all floor area sizes and regions as the previous period
Though there are relatively large fluctuations for “Lessthan 30m2,” in the thirteenth fiscal period all floor area
sizes had occupancy rates of 95% or more.

100%

95%

As of March 31, 2012
Classification
by floor area

90%
Less than 30㎡

30㎡ to less than 50㎡

50㎡ or more

85%
End ofMarch 2011
(11th FP)End ofJune

End of
September 2011
(12th FP)End ofDecember

End ofMarch 2012
(13th FP)

Total number ofleasable units

OccupancyrateLess than 30m2

2,159

97.1%

30m2 to less than 50m2

1,056

96.2%

501

97.3%

50m2 or more

(Note) Occupancy by floor area indicates occupancy rates by floor area size of residential properties owned as of the end of each period. Stores and offices in residential properties are not included in thecalculations, nor is MAST HAKATA for which there is a master lease agreement and rent guarantee type lease agreement concluded with a master lease company.

Maintained high occupancy rates of more than 95% for
all regions. In particular, MAST HAKATA with fixed rents
contributed to Major Regional Cities.

Occupancy byRegion100%

As of March 31, 201295%
Classification
by region
90%
Central Tokyo / Jonan Area

Greater Tokyo / Adjoining Cities

Major Regional Cities

85%
End ofMarch 2011
(11th FP)End ofJune

End of
September 2011
(12th FP)End ofDecember

End ofMarch 2012
(13th FP)

Total number ofleasable units

Occupancy
rate

Central Tokyo /Jonan Area

1,143

97.0%

Greater Tokyo /Adjoining Cities

1,520

96.2%

Major Regional Cities

1,237

98.2%

(Note) Occupancy by Region indicates occupancy rates by region of residential properties owned as of the end of each month. Shops and offices in residential properties are included.

Changes in the Contract Renewal Rate
Contract Renewal
Rates

90%
81.5%
80%

80.3%

83.8%
79.2%

81.8%

78.7%

81.2%

79.0%

74.1%

Continuing to maintain a high level of contract
renewal rate in the thirteenth fiscal period70%

By continuing to maintain and improve the contract renewal rate:

60%50%
5th FP

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP(Note) Contract renewal rate: The ratio of the number of residential units for which contracts wererenewed against the number of residential units due for contract renewal during the fiscal period.

Reduce costs such as restoration and leasing fees accompanying
tenant replacement
Maintain and improve the occupancy rate by reducing vacancy rate
And promote the improvement of profitability.
19

Occupancy and Rent Trends [Residential (2)]Residential Rent Trends
For residences overall, the margin of decrease of rents shrunk further in the thirteenth fiscal period. Rents have begun increasing insome regions and there are strengthened signs of bottoming out.
Fluctuation Rate of Rent Per Tsubo from the Previous Period
End of fiscal period ended September 30, 2011
(twelfth fiscal period)

Area
Central Tokyo / Jonan Area

-0.5%

Greater Tokyo / Adjoining Cities-0.2%

Major Regional Cities-0.2%

End of fiscal period ended March 31, 2012
(thirteenth fiscal period)-0.4%

All Residential Properties-0.4%(Improved 0.1 points fromprevious fiscal period)

All Residential Properties-0.2%(Improved 0.2 points fromprevious fiscal period)

0.0%
-0.0%

Note: The table above shows the changes in the rent per tsubo from the end of the previous period to the respective period by each area. Stores and offices in residential properties are not included in thecalculations. The percentages are rounded to the nearest first decimal place..

Rent Trends for Contract Renewals

Rent Trends for New Contracts
Decrease

No change

Increase

Decrease

100%
75%

100%
43.6%

41.0%

28.0%

29.7%

11.5%

28.4%

29.3%

11th fiscal period(ended March 31, 2011)

12th fiscal period(ended September 30, 2011)

13th fiscal period(ended March 31, 2012)

53.4%

50%
25%

35.0%

No change
5.0%

2.1%

1.1%

95.0%

97.9%

98.9%

11th fiscal period(ended March 31, 2011)

12th fiscal period(ended September 30, 2011)

13th fiscal period(ended March 31, 2012)

75%
50%
25%

0%

0%

Increased ratio of contracts where rent increased

11.5%(11th FP)

28.4%
(12th FP)

29.3%
(13th FP)

Decreased ratio of renewals where rent decreased

5.0%(11th FP)

2.1%
(12th FP)

1.1%
(13th FP)

(Note) The above percentage figures are the ratios of cases of decreased, no change and increased rents in the total new contracts or renewed contracts in the respective periods, and are rounded to the nearest
first decimal place. Stores and offices in residential properties are not included in the calculations, nor is MAST HAKATA for which there is a master lease agreement and rent guarantee type lease agreement
concluded with a master lease company.

20Occupancy and Rent Trends [Retail]Occupancy Status of Retail Facilities
Maintained a high occupancy rate overall though close cooperation with property management companies
HAMAMATSU Plaza

Occupancy Status in the Thirteenth Fiscal Period
Retail facility

Beginning offiscal period

End of fiscal
periodAverage during
fiscal period

HAMAMATSU Plaza

96.2%

100%

96.4%

b-town JINGUMAE II

100%

100%

100%

RINKU HAGURAZAKI Plaza

100%

100%

100%

b-town MINAMIAOYAMA

73.3%

92.3%

87.4%

KOJIMA NEW KAMIFUKUOKATEN

100%

100%

100%

b-toss IKEBUKURO

100%

88.8%

90.6%

Joy Square YUGAWARA

100%

100%

100%

Bell Plaza Shopping Center

100%

100%

100%

97.8%

99.8%

98.0%

Retail facilities overall

After partial sale of HAMAMATSU Plaza, 100% occupancy for remaining partb-town MINAMIAOYAMA
Tenants whose contracts expired during the fiscal period renewed upon adjusting their rent
Contracted new tenant to 1F shop space. One residential space is still empty as of the end ofMarch

KOJIMA NEW KAMIFUKUOKATEN
Contract expired during the fiscal period and renewed with same rent

b-toss IKEBUKURO
Focused on leasing from an early stage but one space is still empty as of the end of the
fiscal period.

Remaining Contract Periods at Retail Facilities
Remaining contract period

End of fiscal period ended March 31, 2011
(eleventh fiscal period)

Less than 3 years
3 years to less than 5 years

15 years to less than 20 years
Weighted average ofremaining years (Note)(twelfth fiscal period)

24.1%

End of fiscal period ended March 31, 2012
(thirteenth fiscal period)

35.6%

28.7%

10.0%

5 years to less than 10 years
10 years to less than 15 years

End of fiscal period ended September 30, 2011

15.9%

10.8%
47.2%

28.7%

41.9%

13.9%

19.9%

16.9%

4.7%

0.0%

1.7%

7.7 years

7.1 years

6.1years(Note) The weighted average of remaining years is based on tenant lease agreements effective as of the end of each fiscal period and calculated by seeking the weighted average with the highest shop rent (excluding sales rent) during the lease period.

21

Changes in Unrealized Loss Ratio, Etc.
Changes in Entire Portfolio
The unrealized loss ratio had been decreasing from the end of the twelfth fiscal period and recovering and it decreased further by theend of the thirteenth fiscal period ⇒ Increase of NAV per unit

Changes in Unrealized Loss Ratio, Etc.

Entire Portfolio-20%

Unrealized loss ratio(left axis)

Period-end book
Value (right axis)

Unrealized loss
value (right axis)

98,115 -11,521
86,594

Decreased 3.1 points
compared to
Twelfth fiscal period

Period-end estimatedvalue (right axis)

101,904 -12,344

103,627 -11,082

89,55992,54598,226-7,45590,771( million yen)
120,000

Changes in NAV Per Unit
Increased ¥31,520(yen)
500,000

compared totwelfth fiscal period

100,000

400,000

80,000374,277

300,000-10%-12.1%-11.7%

60,000-10.7%

53

57

58

60

properties

properties

properties

properties

10th fiscal period end(Sep. 30, 2010)

11th fiscal period end(Mar. 31, 2011)

12th fiscal period end(Sep. 30, 2011)

13th fiscal period end(Mar. 31, 2011)

Acquired 4
residential properties

Acquired 1
residential property

331,786

342,757

200,000-7.6%

0%338,937

40,000100,000

20,0000

0
10th FP end 11th FP end 12th FP end 13th FP end

Residential: Acquired 3 properties, Sold Spacia MEGUROFUDOMAE
Retail: Partial sale of HAMAMATSU Plaza(Note) Unrealized loss ratio ＝ Unrealized loss value ÷ Period-end book value
Unrealized loss value ＝ Period-end estimated value –Period-end book value

NAV( million)

39,001

38,17839,44143,068(Note) NAV ＝ Period-end net asset - Period distribution value + Unrealized loss value
NAV per unit = Period-end NAV ÷ Period-end number of outstanding investment units

Changes by Asset Class
Changes in Unrealized Loss Ratio, Etc.
Residence-20%

Unrealized loss ratio(left axis)

Unrealized loss
value (right axis)

RetailPeriod-end bookvalue (right axis)( million yen)
120,000

Period-end estimatedvalue (right axis)-18.1%

100,000-18.6%-14.4%-14.6%-10%

80,00060,000-10.6%-9.8%

40,000

-7.7%

-5.8%
0%
10th FP end

11th FP end

12th FP end

13th FP end

10th FP end

11th FP end

12th FP end

13th FP end

Residence
Unrealized loss ratio steadily improvingfrom end of the eleventh fiscal period
・ Period-end estimated values increased at 35 properties
form the end of the twelfth fiscal period (cap rates
decreased at 37 properties including EL CIELO
MEGUROHONCHO, J-FLATS MINAMIHORIE, Spacia
OISENDAIZAKA and Mitezza C6)

Retail

20,000

Unrealized loss ratio improved significantly
at the end of the thirteenth fiscal period0・Improvement due to the impact of the partial sale of
HAMAMATSU Plaza and other factors

22

3. Financial Activities of the Thirteenth Fiscal
Period Ended March 31, 2012

プライムメゾン東桜
MAST HAKATA

Initiatives to Promote Stabilizing of Financial Standing
Overview of Financial Activities in the Thirteenth Fiscal Period■Financing Funds for Property Acquisitions
Loan
AmountNewborrowings
in February
2012

¥3.2
billion

Loan Term/
Interest Rate
(Spread)Approx. 3 years
1 month
0.99850% (0.6%)

Newborrowingsin March
2012

Fixed with swap
agreement

Change of Rating Outlook

Loan Term/
Interest Rate
(Spread)Loan
AmountAs of April 26, 2012

Approx. 5 years
1.18975% (0.7%)

Newly invited 3 new
financial institution

Fixed with swap
agreement

New borrowings from:¥1.5
billion■Rating agency
Rating and Investment Information, Inc. (R&I)■Issuer rating
A (Rating outlook: Stable)

Shinkin Central BankThe Shizuoka Bank

■Finance of redemption funds of investment corporation
bonds which matured in March 2012
Value
issuedIssued inMarchbillion2007¥5.0

Bond period/ Interest rate

5 years
2.03%
Fixed

Reducedborrowing costNewborrowingsin March2012¥5.0
billionin the thirteenth fiscal period

Loan Term/
Interest Rate
(Spread)Loan
AmountChanged to Positive

The Bank of Fukuoka

Further strengtheningof bank formation
centering on majordomestic financial
institutions

Approx. 5 years
1.19475%(0.7%)
Fixed with swap
agreement■Reasons for change of outlook:①The significant decrease of concentrated
risk on HAMAMATSU Plaza with thepartial sale of the property②The outlook for continued improvement of
the portfolio’s quality and size
③The aggressive support stance of majorsponsor Sekisui House

Borrowing Cost / Loan Term
Period Average Borrowing Cost Rate (Notes 1 and 2)

Average Remaining Period of Borrowings (Note 3 and 4)(years)

3.00%

2.0

2.1 years
2.00%

2.45%

1.5

2.47%
1.97%
1.61%

1.00%

2.0 years

2.0 years

1.5 years

1.0

1.56%
0.5

1.0 year

Realized further reductionof period averageborrowing cost rate andfurther extension ofborrowings

0.0

0.00%
9th FP

10th FP

11th FP

12th FP

13th FP

9th FP end

10th FP end 11th FP end 12th FP end 13th FP end

Notes: 1. Period average borrowing cost rate = Period borrowing cost (annualized) ÷ Balance of period average interest-bearing debt
Borrowing cost = Borrowing related expenses + Interest expenses on investment corporation bonds + interest expenses
2. Rounded to the nearest second decimal place.
3. Does not include interest-bearing leasehold and security deposits.
4. The figures are the result of calculation based on the weighted average using the remaining

terms from each date to the repayment (redemption) dates of loans and investment corporation bonds, and their balances and rounded down to the nearest first decimal place.

24

Overview of Interest-Bearing Debt as of March 31, 2012
Period-on-Period Comparison of Interest-Bearing Debt

Overview of Interest-Bearing Debt
Outstanding Balance
Short-term loans payable
Long-term loans payable (Note 3)
Interest-bearing deposits
Investment corporation bonds
Total interest-bearing debt

LTV (Note 4)

Average Interest Rate on
Procurement (Note 2)- million¥57,575 million

-%
1.3%

¥497 million- million¥58,073 million

2.0%
-%
1.3%

(million yen)

5,000
1,157

50,000Investment
corporation bonds
due within one year

40,00043,64630,00041,28820,00013,9296,587

0Loans Payable Outstanding by Financial Institution

Sep. 30, 2011

Outstanding
Balance

Share

Mizuho Corporate Bank, Ltd.

¥11,232 million

19.5%

Sumitomo Mitsui Banking Corporation¥11,073 million

19.2%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥4,800 million

8.3%

Mitsubishi UFJ Trust and Banking Corporation¥4,142 million

7.2%

Interest-bearing
depositLong-term loans
payable10,000

51.5%

Financial Institution

497

60,000Mar. 31, 2012

Current portion of
long-term loans
payableWell balanced bank formation centeringon major domestic financial institutions
1.7%

1.7%1.7%

Development Bank of Japan Inc.

¥4,141 million

7.2%

1.7%

The Norinchukin Bank

¥3,852 million

6.7%

2.6%

The Sumitomo Trust and Banking Co., Ltd. (Note 5)¥3,600 million

6.3%

Resona Bank, Ltd.

¥3,450 million

6.0%

Mizuho Trust & Banking Co., Ltd.

¥2,584 million

4.5%

Aozora Bank, Ltd.

¥1,600 million

2.8%

The Chuo Mitsui Trust and Banking Company, Limited (Note 5)¥1,500 million

2.6%

The Senshu Ikeda Bank, Ltd.

¥1,000 million

1.7%

The 77 Bank, Ltd.

¥1,000 million

1.7%

The Hiroshima Bank, Ltd.

¥1,000 million

1.7%

The Yamaguchi Bank, Ltd.

¥1,000 million

1.7%

Shinkin Central Bank

¥600 million

1.0%

The Shizuoka Bank, Ltd.

¥500 million

0.9%

The Bank of Fukuoka¥500 million

0.9%

1.0%

0.9%

0.9%

MizuhoCorporateBank,Ltd.
SumitomoMitsuiBankingCorporation
TheBankofTokyo-MitsubishiUFJ,Ltd.

Total Debt

¥57,575 million 100.0%

MitsubishiUFJTrustandBankingCorporation

19.5%

2.8%

DevelopmentBankofJapanInc.
TheNorinchukinBank

4.5%

TheSumitomoTrustandBankingCo.,Ltd.(Note5)
ResonaBank,Ltd.

6.0%

MizuhoTrust&BankingCo.,Ltd.

19.2%
6.3%

AozoraBank,Ltd.
TheChuoMitsuiTrustandBankingCompany,Limited
TheSenshuIkedaBank,Ltd.

6.7%

The77Bank,Ltd.

7.2%

8.3%
7.2%

TheHiroshimaBank,Ltd.
TheYamaguchiBank,Ltd.
ShinkinCentralBank
TheShizuokaBank,Ltd.
TheBankofFukuoka

Notes: 1. Concerning figures in the graphs and tables above, amounts of less than one million yen are rounded down and percentage figures are rounded to the nearest first decimal place.
2. The average interest rate on procurement is the weighted average of applied interest rates as of March 31, 2012, and the figures are rounded to the nearest first decimal place.
3. Includes current portion of long-term loans payable due within one year.
4. LTV = Period-end total interest-bearing debt / Period-end total assets (Interest-bearing debt = Borrowings + Investment corporation bonds + Interest-bearing leasehold and security deposits)
5. “Sumitomo Mitsui Trust Bank, Limited” as of the date of this document due to a merger on April 1, 2012.

25

4. Forecasts for the Fourteenth Fiscal Period Ending
September 30, 2012 and Current Management Policy

プライムメゾン東桜
MAST HAKATA

Forecasts for the Fourteenth Fiscal Period
Fiscal Period Ended
Mar. 31, 2010
(182 days)

Fiscal Period Ended
Sep. 30, 2010(183 days)

Fiscal Period Ended
Mar.31, 2011(182 days)

Fiscal Period Ended
Sep. 30, 2011(183 days)

Fiscal Period Ended
Mar. 31, 2012(183 days)

Fiscal Period Ending
Sep.30, 2012(183 days) (outlook)

Operating revenue (million yen)

3,402

3,334

3,462

3,533

3,705

3,550

Operating income (million yen)

1,688

1,576

1,655

1,622

1,600

1,608

Ordinary income (million yen)

1,053

956

1,144

1,156

1,165

1,170

Net income (million yen)

1,052

938

1,126

1,155

1,164

1,167

Cash distributions per unit (yen)10,052

8,160

9,793

10,045

10,117

10,150<Assumptions for forecast of fiscal period ending September 30, 2012>◆Assets under management: 64 properties owned as of April 2, 2012
◆Management fees: Approx. ¥287 million◆Noncurrent asset tax, etc. that will be allocated as expenses related to rent business: Approx. ¥183 million ◆Depreciation and amortization: Approx. ¥711 million◆Interest expenses, loan origination fees, etc.: Approx. ¥438 million◆Number of investment units issued and outstanding: 115,070 units
Notes: 1. Amounts less than the indicated denomination are rounded down.
2. The above figures are calculated based upon certain assumptions as of May 16, 2012. Actual operating revenue, operating income, ordinary income, net income and cash distributions per unit may differ
as a result of subsequent acquisitions or sales of real estate, trends in real estate markets, changes in the operating environment or other conditions affecting the Investment Corporation. The above
forecasts are not intended to be guarantees of business results or cash distributions.

Operating Revenue, Operating Income and Net Income(million yen)

Operating revenue

Operating income

Net income

Cash Distribution Per Unit
(yen)

4,000
10,000

3,500
3,000

8,000

2,500
6,000

2,000
1,500

4,000

1,000
2,000

500
0

0
Period ended Period ended Period ended Period ended Period ended Period ending
Mar. 2010
Sep. 2010
Mar. 2011
Sep. 2011
Mar. 2012
Sep. 2012(outlook)

Period ended Period ended Period ended Period ended Period ending Period ending
Mar. 2010
Sep. 2010
Mar. 2011
Sep. 2011
Mar. 2012
Sep. 2012(outlook)27

Current Management Policy
Forecast cash distribution per unit for the
fourteenth fiscal period ending September 30, 2012

¥10,150
Building a portfolio centering on
high-quality residential properties

Asset

Debt
Total of interestbearing debt

Effective utilization of liquidity on hand andborrowing capacity which increased due toreplacement of assets under management

Total acquisition price ofowned properties¥58.0 billion¥105.8 billion

LTV

Number of owned
properties

Average interest rate
on procurement

64

1.3%

Occupancy rate

Equity51.5%

Strengthening leasing through brand strategy

Unify brand name of residential properties
acquired from parties other than Sekisui
House Group (with some exceptions)(

Maintain and improve distributions
at the 10,000 yen level

Sekisui House SI Investment Corporation

Effective utilization of the cash position

New brand〈Distributions Policy〉

)

98.3%
Promote comprehensive
brand strategy with Sekisui
House’s urban rental
condominium brand “Prime
Maison”

Unitholders’ capital

NAV per unit

¥374,277
Net assets per unit basedon appraisal value¥50.5 billion
Number of investment
units issued andoutstanding

115,070

Maintaining and improving stablefinancial standing
Continue conservative LTV control
Further reduction of borrowing costs
Improve issuer rating, consider acquiring
new credit rating

Prepare and consider optimum fundprocurement methods
Strengthen relationships with existing and newinvestors
Aim for public offerings at appropriate timing
through comprehensive consideration of revenue
outlook , NAV, LTV, etc.

(Note) Figures in "total acquisition price of owned properties" and "number of owned
properties" above are as of the date of this document. Other figures are as ofthe end of the fiscal period ended March 31, 2012 (thirteenth fiscal period).

Aim to develop into a REIT that has a strong financial standing through increase of asset size focused on
maximizing unitholder returns by building a portfolio centering on high-quality residential properties.
28

Changes to the Management Guidelines and Rules for Transactions with Interested Parties
Compiling the Asset Management Company’s in-house regulations alongside the partial changes to the Articles of Incorporation scheduled
to be discussed at the Fifth General Meeting of Unitholders scheduled for June 12, 2012

Major Changes to Management Guidelines(After change) Portfolio Development Policy

Changes

Allocation rate by asset
class

Limit core assets to “residences” and change “retail facilities”
to balance assets(Focused
investment area)

Clarify that “management-type residences” are included in“residences” which are positioned as core assets
Facilities operated by dedicated management companies andproviding general services

80%~100%
ManagementCore
Residences
type
assetsresidences
0%~10%

Greater Tokyo /Other Urban
Areas

Major Regional
CitiesExpand the focused investment areas in the Tokyo
metropolitan area

【Focused investment areas】＜After change＞
Greater Tokyo /Major Urban Areas

Balance Retailfacilities,
assetsetc.

0%~20%

23 wards,
Musashino-shi,
Mitaka-shi,
Koganei-shi

About 70%

② Kanagawa Yokohama-shi,
Kawasaki-shi
Together with ① Tokyo areas (except islands) andGreater Tokyo
Kanagawa other than the above/ Major Urban ② Chiba, Saitama③ Additional areas within
Areas
commuting distanceabout 80%

Examples: Student dorms, company housing, serviced housing forthe elderly, pay nursing homes, serviced apartments, etc.

＜Before change＞
Central Tokyo /Jonan Area

Specific area
①TokyoGreater Tokyo /Major Urban Areas

Transition to a “integrated REIT focusing on residential
properties” with the partial changes to the Articles ofIncorporation【Scope of management-type residences】

Allocation rate by region

About 20%

① Sapporo-shi, Sendai- shi,
Nagoya-shi, Kyoto-shi, Osakashi, Kobe-shi, Hiroshima-shi,
Fukuoka-shi, etc.
② Additional areas withincommuting distanceBased on an assessment of the specific characteristics
of each property, region and trade zone
(Note) About means ±10%

Major Changes to Rules for Transactions with Interested Parties
Changes【Major Changes of Status of Interested Parties】

BeforechangeAfter change

Sekisui House○○

Changed the upper limit of transaction price of real estate, etc. from Interested Parties from 105%of the real estate appraisal value, etc. to equal to or below the real estate appraisal value, etc.

4 companies including
Sekiwa Real Estate○○

Payment of agency fees to Interested Parties

Spring Investment-○

Changed the upper limit of agency fees paid to Interested Parties to within the limit of reward
stipulated in the Building Lots and Buildings Transaction Business Law

GK AQUA 1○-

Scope of Interested Parties
Changed scope of Interested Parties in line with the reality of conflicts of interest

Major relatedcompanies

Limited acquisition price of specified assets from Interested Parties

29

[Reference] Fifth General Meeting of Unitholders
Date and Venue■Scheduled date: June 12, 2012 (Tuesday) 10:00 AM■Venue: Otemachi Sankei Plaza (Chiyoda Ward, Tokyo)

Purpose of Meeting■Agendas and Major Content

Agenda 1: Partial Changes to the Articles of Incorporation
Limit Main Investment Target to “Residences”
In transitioning to an “integrated REIT focusing on residential properties” from an “integrated REIT focusing on residences and retail facilities” byrealizing external growth based on high-quality residential properties developed by Sekisui House, the Investment Corporation’s main sponsor, thepositioning of retail facilities will be changed from a main investment target to a diversified investment target.

Change Standards for Payment of Compensations for Acquisitions and Sales
Change the scope of transaction partners for which the rate employed in calculating rewards for when the Investment Corporation acquires or sells
specified assets is changed to below 0.4% in accordance with the reality of conflicts of interest with the Investment Corporation or the AssetManagement Company

Agenda 2: Appointment of one executive director
Change of Executive Director
With the resignation of a current executive director, Junichi Inoue who is the current substitute executive director as well as President of the AssetManagement Company will be appointed.

Agenda 3: Appointment of one substitute executive director
Change of Substitute Executive Director
Koji Sakamoto who is the Senior Managing Director of the Asset Management Company will be appointed.

Agenda 4: Appointment of two supervisory directors
Reappointment of Two Supervisory Directors
With the resignation of a current executive director, supervisory directors Kaoru Takamatsu and Mikio Koyano will temporarily resign and bereappointed.
30

5. Appendix

プライムメゾン東桜
MAST HAKATA

Balance Sheets (1)12th fiscal period (As of September 30, 2011)
Million yen

Percent of total

13th fiscal period (As of March 31, 2012)
Million yen

Percent of total

ChangeMillion yen

Period on period (%)

AssetsCurrent assets
Cash and deposits

2,184

9,355

7,171

Cash and deposits in trust

3,408

4,275

866

Operating accounts receivable

44

132

88

Prepaid expenses

170

124

-45

Deferred tax assets

-

0

0

Other

0

12

12

Allowance for doubtful accounts
Total current assets

-2
5,806

-1
5.3

13,900

0
12.3

8,093

139.4

Noncurrent assets
Property, plant and equipment
44,781

44,864

Accumulated depreciation-6,020-6,0191

Buildings in trust, net

38,76038,84584-220

Buildings in trust

83

545

324

Accumulated depreciation

-158

-87

71

Structures in trust, net

386

236

-149
-139

Structures in trust

Machinery and equipment in trust

658

518

Accumulated depreciation

-154

-161

-6

Machinery and equipment in trust, net

503

357

-146

Tools, furniture and fixtures in trust

45

53

8

Accumulated depreciation

-14

-17

-3

30

35

4

Land in trust

63,94558,587-5,358

Total property, plant and equipment

103,627

Tools, furniture and fixtures in trust, net

94.5

98,062

86.9-5,565-5.4

Intangible assets
Leasehold rights in trust

-

164

Other

4

4

Total intangible assets

4

0.0

168

164
-0
0.2

163

3,552.9

Investments and other assets
-

206

206

Lease and guarantee deposits

10

241

231

Long-term prepaid expenses

125

127

1

Other

87

93

Total investments and other assets

224

0.2

669

0.6

445

198.7

103,856

94.7

98,90087.7-4,956-4.8

Investment securities

Total noncurrent assets

5

Deferred assets
Investment corporation bond issuance costs

1

Total deferred assets

1

0.0

-

-

-1

-100.0109,664

100.0

112,800

100.0

3,135

2.9

Total Assets

-

-1

32

Balance Sheets (2)12th fiscal period (As of September 30, 2011) 13th fiscal period (As of March 31, 2012)
Million yen

Percent of total

Million yen

Percent of total

ChangeMillion yen

Period on period (%)

Liabilities
Current liabilities
218

144

-73

Investment corporation bond due within one year

5,000

-

-5,000Current portion of long-term loans payable

Operating accounts payable

6,587

13,9297,342

Accounts payable – other

288

352

63

Accrued expenses

76

78

2

Income taxes payable

0

1

0

Consumption taxes payable

16

139

122

Advances received

432

365

-66

3

5

Other
Total current liabilities

12,624

11.5

15,017

1
13.3

2,393

19.0

Noncurrent liabilities
Long-term loans payable

41,28843,646

2,357

Tenant leasehold and security deposits in trust

4,072

2,449

-1,623

Total noncurrent liabilities

45,361

41.4

46,095

40.9

734

1.6

57,98552.9

61,112

54.2

3,127

5.4

50,52346.1

50,52344.8--

Total Liabilities

Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)

1,155

Total surplus

1,155

1.0

1,164

1.0

8

0.7

Total unitholders’ equity

51,67947.1

51,687

45.8

8

0.0

51,67947.1

51,687

45.8

8

0.0

109,664

100.0

112,800

100.0

3,135

2.9

Total Net Assets
Total Liabilities and Net Assets

1,164

8

33

Statements of Income
12th fiscal period
from April 1, 2011
to September 30, 2011

13th fiscal period
from October 1, 2011
to March 31, 2012

Percent of
total

Million yen

ChangePercent of
total

Million yen

Period on period(%)

Million yen

Operating revenue
Rent revenue - real estate
Gain on sales of real estate properties
Total operating revenue

3,533

3,645

-

60

3,533

100.0

3,705

111
60
100.0

171

4.9

Operating expenses
Expenses related to rent business

1,564

1,550

-13

-

187

187

Asset management fee

215

221

6

Asset custody fee

10

10

0

Administrative service fees

24

25

0

Directors’ compensations

3

3

-

Provision of allowance for doubtful accounts

0

0

0

Loss on sales of real estate properties

Other operating expenses

92

Total operating expenses

1,911

54.1

2,104

56.8

193

10.1

1,622

45.9

1,600

43.2

-21

-1.4

Operating Income

105

13

Non-operating income
Interest income

0

0

0

Reversal of distributions payable

0

0

-0

Reversal of allowance for disaster losses

1

-

-1

Other

0

-

Total non-operating income

2

0.1

0

-0
0.0

-1

-58.3

Non-operating expenses
Interest expenses

324

330

6

Interest expenses on investment corporation bonds

50

46

-4
-0

Amortization of investment corporation bond issuance costs

2

1

Borrowing related expenses

55

56

1

Other

35

0

-34

467

13.3

435

11.7

-32

-6.9

Ordinary Income

Total non-operating expenses

1,156

32.7

1,165

31.5

8

0.8

Income before Income Taxes

1,156

32.7

1,165

31.5

8

0.8

Income taxes - current

0

Income taxes - deferred

0

Total income taxes

0

0.0

1

0.1

0

66.5

1,155

32.7

1,164

31.4

8

0.7

Net Income
Retained earnings brought forward
Unappropriated Retained Earnings (undisposed loss)

1
-0

0
1,155

0
-0

0
32.7

1,164

-0
31.4

8

0.7

34

Statements of Cash Flows / Cash Distributions
Statements of Cash Flows
12th fiscal period
from April 1, 2011
to September 30, 2011
Million yen

13th fiscal period
from October 1, 2011
to March 31, 2012
Million yen

Net cash provided by (used in) operating activities

12th fiscal period
from April 1, 2011
to September 30, 2011
Million yen

13th fiscal period
from October 1, 2011
to March 31, 2012
Million yen

Net cash provided by (used in) investment activities

Income before income taxes

1,156

1,165

-2,406-4,546

Depreciation and amortization

672

695

Purchase of intangible assets in trust

-

-164

Purchase of property, plant and equipment in trust

Amortization of investment corporation bondissuance costs
Increase (decrease) in allowance for doubtful
accounts

2

1

Purchase of investment securities

-

-205

-18

-0

Provision of lease and guarantee deposits

-

-231

Interest income

-0

-0

179

110

Interest expenses

375

376

Decrease (increase) in operating accounts
receivable-251-1,7338-88

Proceeds from tenant leasehold and security deposits in trust
received
Repayments of tenant leasehold and security deposits intrust received

Decrease (increase) in prepaid expenses-53

Decrease (increase) in investments and other assets-3-5

Net cash provided by (used in) investment activities-2,481-6,77650

Increase (decrease) in operating accounts payable

54

-85

Increase (decrease) in accounts payable - other1245

Net cash provided by (used in) financing activities

Increase (decrease) in consumption taxes payable

16

122

Proceeds from long-term loans payable

8,600

9,700

Increase (decrease) in advances received

11

-66

Repayments of long-term loans payable-6,300-Decrease (increase) in long-term prepaid expenses

-19

-7

Decrease (increase) from sale of property, plantand equipment in trust

-

9,446

Other, net

-9

-10

Subtotal

2,207

11,646--5,000

Dividends paid

-1,126-1,156

Net cash provided by (used in) financing activities

1,173

3,543

Redemption of investment corporation bonds

00Interest expenses paid

-382

-374

Disaster losses paid

-3-

Net increase (decrease) in cash and cash equivalents

513

8,037

-0

-0

Cash and cash equivalents at beginning of period

5,080

5,593

1,821

11,271

Cash and cash equivalents at end of period

5,593

13,631

Interest income received

Income taxes paid
Net cash provided by (used in) operating activities

Cash Distributions
12th fiscal period from April 1, 2011 to September 30, 2011

13th fiscal period from October 1, 2011 to March 31, 2012

Yen

Yen

I Unappropriated retained earnings

1,155,971,124

1,164,203,769

II Cash distributions

1,155,878,150

1,164,163,190(10,045)(10,117)

92,97440,579(Cash distributions per unit)
III Retained earnings brought forward

35

Summary of Selected Financial Data
12th fiscal period
from April 1, 2011
to September 30, 2011

13th fiscal period
from October 1, 2011
to March 31, 2012

183

183

Total assets

109,664 million yen

112,800 million yen

Net assets

51,679 million yen

51,687 million yen

Unitholders’ capital

50,523 million yen

50,523 million yen

Investment units outstanding

115,070 units

115,070 units

Net assets per unit

449,112 yen

449,183 yen

1,155 million yen

1,164 million yen

10,045 yen

10,117 yen

2.1%

2.1%

Return on unitholders’ equity (annualized)

4.5%

4.5%

Unitholders’ equity ratio3

47.1%

45.8%

58

60

276,314.61㎡

237,289.73㎡

97.3%

98.3%

672 million yen

695 million yen

49 million yen

30 million yen

Leasing Net Operating Income (NOI)

2,641 million yen

2,789 million yen

Funds from Operation5 (FFO)

1,828 million yen

1,986 million yen

15,890 yen

17,265 yen

54,032 million yen

58,073 million yen

49.3%

51.5%

51.7%

53.5%

4.5 times

4.7 times

Business days

Total cash distributions
Cash distributions per unit
Ordinary income to total assets1 (annualized)
2

Total number of properties
Total rentable floor area
Period-end occupancy rate
Depreciation expense
Capital expenditures
4

FFO per unit
Total interest-bearing debt
6

Loan to Value (LTV)Interest-bearing debt ratio7
8

Debt Service Coverage Ratio (DSCR)(1) Ordinary income to total assets = Ordinary income (annualized) /Average total assets
Average total assets = (Period-beginning total assets + Period-end
total assets) / 2(2) Return on unitholders’ equity = Net income (annualized) / Average
net assets
Average net assets = (Period-beginning net assets + Period-end net
assets) / 2(3) Unitholders’ equity ratio = Period-end net assets / Period-end total
assets(4) Leasing NOI = Leasing operating income (= Rent revenue-realestate – Expenses related to rent business) + Depreciation andamortization (Expenses related to rent business)(5) FFO = Net income – Gain on sales of real estate properties + Losson sales of real estate properties + Depreciation and amortization(6) LTV = Period-end interest-bearing debt / Period-end total assets
Interest-bearing debt = Borrowings + Investment corporation bonds +Interest-bearing tenant leasehold and security deposits(7) Interest-bearing debt ratio = Period-end interest-bearing debt /(Period-end interest-bearing debt + Unitholders’ capital)(8) DSCR = (Net income + Repayment of interest-bearing debt + Interest
expenses + Depreciation and amortization) / (Repayment of interestbearing debt + Interest expenses)
Note: Ratios are rounded to the nearest first decimal place.
36

History of the Investment Corporation since ListingManagement before change of sponsor

Total
acquisition
price(million yen)

110,000

Assets acquired after change of sponsor
Assets acquired before change of sponsor

100,000

38
properties
82,21790,00080,00070,00060,00050,00040,000July 28, 2005
Listed on theTokyo Stock
Exchange

16
properties
41,39228
properties
61,707 October 18, 2006
Public offering
28,500 units

21
properties
47,516

November 16,
2006
Third-party
allotment 1,500
units

30,000August 29, 2005
Third-party allotment
2,000 units

20,00042properties
81,47348
properties
91,81852
properties
99,04853
properties
99,919Management after change of sponsor
53
properties
99,92053
properties
99,92053
properties
99,92057
properties
103,974(Note 1)

October 24,
2007
Public offering
17,500 units

April 2, 2010

November21, 2007Third-party
allotment
1,170 units

Change of tradenameThird-party
allotment
10,400 units

Investment
corporation bonds¥10,000 million

0Unitholders’capitalSale of 1
property
As of IPO

¥27,473
millionNumber of
54,000 units
investment units

60
properties
101,006

March 13, 2007

10,000-10,000

58
properties
106,234

Partial sale of
HAMAMATSU Plaza, etc.

Sale of 1
property

End of 1st FP End of 2nd FP End of 3rd FP End of 4th FP End of 5th FP End of 6th FP End of 7th FP End of 8th FP End of 9th FP End of 10th FP End of 11th FP End of 12th FP End of 13th FP(Mar. 31, 2006)(Sep. 30, 2006)(Mar. 31, 2007)(Sep. 30, 2007)(Mar. 31, 2008)(Sep. 30, 2008)(Mar. 31, 2009)(Sep. 30, 2009)(Mar. 31, 2010)(Sep. 30, 2010)(Mar. 31, 2011)(Sep. 30, 2011)(Mar. 31, 2012)¥28,491
million¥42,297
million¥48,704
million¥50,523
million56,000 units

86,000 units

104,670 units

115,070 units

Total interestbearing debt
(Note 2)―

¥23,165
million¥34,724
million¥42,382
million¥43,090
million¥44,523
million¥52,181
million¥51,639
million¥51,449
million¥51,208
million¥49,229
million¥51,874
million¥54,032
million¥58,073
millionLTV (Note 3)

―

41.7%

51.7%

47.3%

47.7%

45.2%

49.3%

49.3%

49.0%

48.9%

47.1%

48.3%

49.3%

51.5%

Cash
distributions perunit (Note 4)―¥17,277(¥12,730)¥12,995¥13,035¥13,023¥14,402¥11,147¥5,485¥10,262¥10,052¥8,160¥9,793¥10,045¥10,117

Notes: 1. With regard to the Bell Plaza Shopping Center acquired in the fiscal period ended March 31, 2008, adjacent signboards, etc. were additionally acquired at a total of ¥1 million during the fiscal period ended September 30, 2009.
2. Total interest-bearing debt = Loans payable + Investment corporation bonds + Interest-bearing tenant leasehold and security deposits
3. LTV = Period-end interest-bearing debt / Period-end total assets
4. The operating period for the first fiscal period was the 346 days between April 20, 2005 and March 31, 2006. The actual management period was the 247 days between July 28, 2005 and March 31, 2006. In order to compare with the successive fiscal
periods, the figure calculated with the number of management days as 182 is indicated in parentheses.

37Portfolio Map (1)~Regional Distribution of Portfolio~
As of date of document

Residence (property number)
Retail Properties (property number)

Osaka City
Central Tokyo / Jonan Area
Bunkyo-ku

Shinjuku-ku
Chiyoda-ku

Fukuoka City
Chuo-ku

Shibuya-ku

Minato-ku
Setagaya-ku
Meguro-ku

Shinagawa-ku

Ota-kuGreater Tokyo/ Adjoining Cities
Nagoya CityTokyo

Portfolio PML

5.1%(Entire Portfolio)(Note) Portfolio PML is as of the survey inMarch 2012 and do not include RINKU
HAGURAZAKI Plaza because only theland is owned and leased (the buildings
on it are owned by the tenants).

Kanagawa

38

Portfolio Map (2)~Changes in Investment Area Categories~

Below are the changes scheduled to be made to categories of investment areas by changes to the Management Guidelines alongside the partialchanges to the Investment Corporation’s Articles of Incorporation at the Fifth General Meeting of Unitholders scheduled for June 12, 2012.
■ Greater Tokyo –Major Urban Areas

Central Tokyo / Jonan Area

New Area Category

Greater Tokyo/ Adjoining Cities

New Area Category■ Greater Tokyo –Other Urban Areas

New Area Category

Major Regional Cities
Chubu, Tokai and Other

Residence

Residence■ Major Regional Cities

Residence-1

Spacia GINZA

Greater Tokyo – Major Urban Areas

Residence-10

FITL KOMAGATA

Greater Tokyo – Major Urban Areas

Residence-3

Spacia AZABUJUBAN II

Greater Tokyo – Major Urban Areas

Residence-11

Spacia MACHIDAGreater Tokyo – Other Urban Areas

Residence
Residence-13

IMAIKE IRIS NIBANKAN

No change

Residence-51

Prime Maison HIGASHISAKURANo change

Prime Maison KAYABAKOENNo change

Retail-1

HAMAMATSU Plaza

No change

Retail-9

Bell Plaza Shopping CenterNo change

Residence-4

Spacia EBISU II

Greater Tokyo – Major Urban Areas

Residence-12

Spacia KAWASAKIGreater Tokyo – Major Urban Areas

Residence-52

Residence-5

Spacia EBISU III

Greater Tokyo – Major Urban Areas

Residence-14

GRACIA FIS

Greater Tokyo – Major Urban Areas

Retail Properties

Residence-6

Spacia KANDA

Greater Tokyo – Major Urban Areas

Residence-15

J-FLATS YOKOHAMA

Greater Tokyo – Major Urban Areas

Residence-7

Spacia SENDAGAYAGreater Tokyo – Major Urban Areas

Residence-16

FITL KAMEIDOGreater Tokyo – Major Urban Areas

Residence-8

Spacia KITASHINJUKUGreater Tokyo – Major Urban Areas

Residence-18

ACT HILLS YACHIYOGreater Tokyo – Other Urban Areas

Residence-20

S-RESIDENCE KYOBASHI

No change

Residence-23

J-FLATS MINAMIHORIE

No change

Residence-28

RARETE JYOUTOUNo change

Residence-29

Spacia TSUKAMOTO CROWN HEIMNo change

Greater Tokyo – Major Urban Areas

Residence-37

J-FLATS SHIJONISHINOTOIN

No change

Residence-41

PREGIO NISHINAKAJIMA

No change

Residence-17

Spacia MEGURO

Greater Tokyo – Major Urban Areas

Residence-19

J-FLATS SUGAMOGreater Tokyo – Major Urban Areas

Residence-21

EL CIELO MEGUROHONCHO

Greater Tokyo – Major Urban Areas

Residence-22

Spacia HAKURAKU

Greater Tokyo – Major Urban Areas

Residence-24

Spacia GOTANDA

Greater Tokyo – Major Urban Areas

Residence-30

Spacia KAWASAKI II

Residence-25

Spacia OISENDAIZAKAGreater Tokyo – Major Urban Areas

Residence-33

FITL ITABASHIHONCHO

Greater Tokyo – Major Urban Areas

Residence-26

FITL SHINAGAWA SEASIDE

Greater Tokyo – Major Urban Areas

Residence-34

FITL OIZUMIGAKUENGreater Tokyo – Major Urban Areas

Residence-27

FITL MINAMIAZABUGreater Tokyo – Major Urban Areas

Residence-40

J-FLATS HACHIOJIMINAMINO

Greater Tokyo – Other Urban Areas

Residence-31

Spacia AZABUJUBAN III

Greater Tokyo – Major Urban Areas

Residence-42

J-FLATS ITABASHIKUYAKUSHOMAE

Greater Tokyo – Major Urban Areas

Kansai Area

Retail Properties
Residence-3

Residence-39
Residence-43

J-FLATS HIGASHISHINAGAWA
J-FLATS MUSASHIKOYAMAGreater Tokyo – Major Urban Areas
Greater Tokyo – Major Urban Areas

Residence-50

Prime Maison MUSASHINONOMORI

Residence-54

Mitezza C6Greater Tokyo – Other Urban Areas

RINKU HAGURAZAKI Plaza

Residence-35

J-FLATS TENJINHIGASHI I

No change

Residence-36

J-FLATS TENJINHIGASHI II

No change

Residence-46

J-FLATS HAKATAHIGASHINo change

Residence-47

J-FLATS KAMIGOFUKUNo change

Residence-55

MAST HAKATANo change

Greater Tokyo – Major Urban Areas

Residence-44

J-FLATS SENDAGIGreater Tokyo – Major Urban Areas

Residence-56

PLATINUM COURT KINSHICHOGreater Tokyo – Major Urban Areas

Residence-45

J-FLATS YOTSUYASAKAMACHI

Greater Tokyo – Major Urban Areas

Residence-57

Clarte MUSASHIKOGANEI ResidenceGreater Tokyo – Major Urban Areas

Residence-48

J-FLATS SANGENJAYAGreater Tokyo – Major Urban Areas

Retail Properties

Residence-53

Tre Di Casa SANGENJAYAGreater Tokyo – Major Urban Areas

Retail-5

KOJIMA NEW KAMIFUKUOKATENGreater Tokyo – Other Urban Areas

Retail-7

b-toss IKEBUKUROGreater Tokyo – Major Urban Areas

Properties Acquired on April 2, 2012

Retail Properties
Retail-2
Retail-4

b-town JINGUMAE II
b-town MINAMIAOYAMAGreater Tokyo – Major Urban Areas
Greater Tokyo – Major Urban Areas

Retail-8

Joy Square YUGAWARA

No change

Kyushu Area (Fukuoka)

New Area Category

Residence
Residence-58

Prime Maison GOKISO

Major Regional Cities

Residence-59

Prime Maison YUHIGAOKA

Major Regional Cities

Residence-60

Prime Maison KITATANABE

Major Regional Cities

Residence-61

Prime Maison MOMOCHIHAMA

Major Regional Cities

Greater Tokyo – Other Urban Areas

39

Status of Portfolio ~Residence (1)~
Number of Units Invested in by Region and Floor Area
as of end of March 2012

Average Building Age

Residential(year)

Retail

Total

15

10.5

10.0

11.0

12.0

11.5

600

900

1,200

1,500

1,800

2,100

(Units)
2,400

6.3

5.8

5.3

7.0

6.6

40㎡〜
50㎡〜

6.7
60㎡〜

4.6

4.1

3.6

30㎡〜

10.2

9

3

300

Less than 30㎡

12

6

0

5.5

5.0

6.0

Central Tokyo / Jonan Area

70㎡〜

Greater Tokyo / Adjoining Cities
80㎡〜

Major Regional Cities

90㎡〜

0Period ended Period ended Period ended Period ended Period ended Period ended
Sep. 2009
Mar. 2010
Sep. 2010
Mar. 2011
Sep. 2011
Mar. 2012

100㎡ or more

Investment Ratios by Categories as of end of March 2012
By Region(before changes to Management Guidelines)[Reference] By Region

By Walking Distanceto Nearest Station

By Age(after changes to Management Guidelines)
10 years or more

Major Regional
Cities

22.6%

43.3%
Greater Tokyo /Adjoining Cities

34.2%

Less than
5 years

22.6%

Central Tokyo /Jonan Area

Greater Tokyo –Other Urban Areas

6.5%

10 minutes
or more3.3%

Major Regional Cities

29.2%
Greater Tokyo –Major Urban Areas

70.9%

5 years toless than
10 years

67.5%

12.3%
Within 3 minutes
5 minutes towithin10 minutes

31.9%

31.1%
3 minutes
to within
5 minutes

24.8%(Note) Investment ratios by categories are calculated based on acquisition prices of owned residential properties and rounded to the nearest first decimal place. Accordingly, ratio totals may not add up to 100%.

40

Status of Portfolio~Residence (2)~Primary Properties Owned
Central Tokyo / Jonan Area
Spacia GOTANDA

Spacia GINZA

Greater Tokyo/ Adjoining Cities
J-FLATS YOKOHAMA

Prime Maison MUSASHINONOMORI

Spacia OISENDAIZAKA

Spacia AZABUJUBAN III

Major Regional Cities
S-RESIDENCE KYOBASHI

Prime Maison HIGASHISAKURA

41

Status of Portfolio~Retail Properties~

Ratio by Region (Retail Properties)

Properties Owned
Central Tokyo / Jonan Area

Central Tokyo/
Jonan Areab-town JINGUMAE II

b-town MINAMIAOYAMA

12.8%
Major
Regional
CitiesGreater Tokyo/
Adjoining Cities

25.2%

62.0%

As of Mar. 31, 2012

Greater Tokyo / Adjoining Cities
b-toss IKEBUKURO

KOJIMA NEW
KAMIFUKUOKATEN

Joy Square YUGAWARA

Major Regional Cities
HAMAMATSU PlazaRINKU HAGURAZAKI
Plaza

Bell Plaza
Shopping Center

Note: Ratios are calculated based on the acquisition price of each property (retail properties) and are rounded to the nearest first decimal place. Accordingly, ratio totals may not add
up to 100 percent.
42

Portfolio at a Glance (1)Properties Owned as of March 31, 2012
Acquisition Price
Property No.

Property Name

Location

Site Area (m 2)

Total Floor Area
(m 2)

Price
(Million yen)

Ratio
(%)

Appraisal
Value at End of
Period(Million yen)

As of Sep.
30, 2011

Occupancy Rate (%)
As of Mar.
31, 2012

Completion Date

Residence-1

Spacia GINZA

Ginza, Chuo-ku, Tokyo

636.36

7,836.57

5,290

5.2

5,280

96.2

99.2 February 7, 2005

Residence-3

Spacia AZABUJUBAN II

Roppongi, Minato-ku, Tokyo

677.452,317.87

1,730

1.7

1,480

94.5

96.0 January 16, 2004

Residence-4

Spacia EBISU II

Higashi, Shibuya-ku, Tokyo

561.582,452.69

1,960

1.9

1,740

100.0

92.6 June 13, 2003

Residence-5

Spacia EBISU III

Hiroo, Shibuya-ku, Tokyo

169.00871.90

700

0.7

740

96.8

96.1 October 20, 2004

Residence-6

Spacia KANDA

Kandatacho, Chiyoda-ku, Tokyo

307.692,028.19

1,360

1.3

1,250

94.8

98.7 February 20, 2004

Residence-7

Spacia SENDAGAYA

Daikyo-cho, Shinjuku-ku, Tokyo

340.49844.13

576

0.6

511

93.7

96.2 August 31, 2004

Residence-8

Spacia KITASHINJUKU

Kitashinjuku, Shinjuku-ku, Tokyo

504.412,204.07

1,290

1.3

1,350

100.0

92.7 August 6, 2004

Residence-10

FITL KOMAGATA

Komagata, Taito-ku, Tokyo

663.54

3,406.10

1,870

1.9

1,840

100.0

93.6 July 28, 2004

Residence-11

Spacia MACHIDA

Haramachida, Machida-shi, Tokyo

587.484,033.59

1,360

1.3

1,360

97.5

94.4 February 23, 2004

Residence-12

Spacia KAWASAKI

Ogawa-cho, Kawasaki-ku, Kawasaki-shi,
Kanagawa

683.694,656.10

2,130

2.1

2,130

97.4

97.3 July 15, 2004

Residence-13

IMAIKE IRIS NIBANKAN

Imaike, Chikusa-ku, Nagoya-shi, Aichi

360.54

1,375.76

300

0.3

197

100.0

91.9 October 15, 1991

Residence-14

GRACIA FIS

Furuichiba, Saiwai-ku, Kawasaki-shi,
Kanagawa

1,992.09

3,737.47

1,018

1.0

961

100.0

100.0 March 5, 1999

Residence-15

J-FLATS YOKOHAMA

Tsuruya-cho, Kanagawa-ku, Yokohama-shi,
Kanagawa

611.41

3,076.45

2,090

2.1

1,930

100.0

100.0 January 23, 2007

Residence-16

FITL KAMEIDO

Kameido, Koto-ku, Tokyo

438.432,899.67

1,650

1.6

1,440

97.9

98.0 November 30, 2005

Residence-17

Spacia MEGURO

Mita, Meguro-ku, Tokyo

Residence-18

ACT HILLS YACHIYO

Midorigaoka, Yachiyo-shi, Chiba

Residence-19

J-FLATS SUGAMO

Residence-20
Residence-21

578.01

1,283.92

887

0.9

963

97.5

100.0 November 28, 2005

1,289.14

5,420.53

1,348

1.3

1,090

96.9

100.0 January 10, 1998

Sugamo, Toshima-ku, Tokyo

965.702,785.83

1,510

1.5

1,440

95.1

97.3 February 22, 2007

S-RESIDENCE KYOBASHI

Higashinoda-cho, Miyakojima-ku, Osaka-shi,
Osaka

799.685,995.82

2,774

2.7

2,600

98.1

98.9 March 2, 2006

EL CIELO MEGUROHONCHO

Megurohoncho, Meguro-ku, Tokyo

865.22

1,975.84

1,220

1.2

969

96.9

100.0 February 22, 2006

Residence-22

Spacia HAKURAKU

Rokkakubashi, Kanagawa-ku, Yokohama-shi,
Kanagawa

457.54

1,593.68

844

0.8

801

100.0

98.0 February 2, 2006

Residence-23

J-FLATS MINAMIHORIE

Minamihorie, Nishi-ku, Osaka-shi, Osaka

475.06

1,994.14

1,055

1.0

925

97.0

100.0 February 19, 2007

Residence-24

Spacia GOTANDA (Note 5)

Nishigotanda, Shinagawa-ku, Tokyo

593.325,590.34

3,043

3.0

2,620

95.5

93.2 March 2, 2006

Residence-25

Spacia OISENDAIZAKA

Higashioi, Shinagawa-ku, Tokyo

558.393,440.73

2,440

2.4

2,310

98.4

97.6 August 10, 2006

Residence-26

FITL SHINAGAWA SEASIDE

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,049.00

3,127.48

2,200

2.2

1,940

96.5

99.0 June 23, 2006

Residence-27

FITL MINAMIAZABUMinamiazabu, Minato-ku, Tokyo

487.27

1,479.61

1,300

1.3

1,090

100.0

96.2 August 23, 2006

Residence-28

RARETE JYOUTOU

Noe, Jyoutou-ku, Osaka-shi, Osaka

740.492,232.26

1,075

1.1

897

95.1

96.8 August 31, 2006

43

Portfolio at a Glance (2)Acquisition Price
Property No.

Residence-29

Property Name

Location

Site Area (m2)

Total Floor Area
(m2)

Price
(Million yen)

Ratio
(%)

Appraisal
Value at End of
Period(Million yen)Occupancy Rate (%)
Completion Date
As of Sep. 30,
2011

As of Mar. 31,
2012

Spacia TSUKAMOTO CROWN HEIM

Tsukamoto, Yodogawa-ku, Osaka-shi, Osaka

808.542,565.66

1,250

1.2

1,000

100.0

100.0

August 10, 2006

Residence-30

Spacia KAWASAKI II

Ogawa-cho, Kawasaki-ku, Kawasaki-shi,
Kanagawa

601.383,193.14

1,900

1.9

1,830

100.0

97.7

February 27, 2007

Residence-31

Spacia AZABUJUBAN III

Azabujuban, Minato-ku, Tokyo

380.26

2,097.45

2,700

2.7

2,220

98.8

94.5

February 22, 2007

Residence-33

FITL ITABASHIHONCHO

Yamato-cho, Itabashi-ku, Tokyo

220.85

1,446.78

1,000

1.0

852

100.0

100.0

February 27, 2007

Residence-34

FITL OIZUMIGAKUEN

Higashi-Oizumi, Nerima-ku, Tokyo

618.001,542.16

871

0.9

718

92.9

100.0

February 22, 2007

Residence-35

J-FLATS TENJINHIGASHI I

Susaki-machi, Hakata-ku, Fukuoka-shi, Fukuoka

239.18

1,158.70

445

0.4

356

100.0

100.0

January 31, 2007

Residence-36

J-FLATS TENJINHIGASHI II

Susaki-machi, Hakata-ku, Fukuoka-shi, Fukuoka

514.892,108.69

840

0.8

654

91.5

97.6

May 23, 2007

Residence-37

J-FLATS SHIJONISHINOTOIN

Myodenji-cho, Shijo-sagaru, Nishinotoin-dori,Shimogyo-ku, Kyoto-shi, Kyoto

400.593,374.74

1,420

1.4

1,020

94.3

97.7

April 08, 2008

Residence-39

J-FLATS HIGASHISHINAGAWA

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,028.92

3,338.12

2,610

2.6

2,170

93.1

99.2

May 23, 2008

Residence-40

J-FLATS HACHIOJIMINAMINO

Nishikatakura, Hachioji-shi, Tokyo

1,134.50

2,243.06

1,000

1.0

936

98.8

87.2

March 6, 2007

Residence-41

PREGIO NISHINAKAJIMA

Higashinakajima, Higashiyodogawa-ku, Osakashi, Osaka

969.02

3,947.24

2,250

2.2

1,860

94.4

99.2

April 18, 2007

Residence-42

J-FLATS ITABASHIKUYAKUSHOMAE

Itabashi, Itabashi-ku, Tokyo

731.71

4,322.19

2,700

2.7

2,310

100.0

95.2

April 22, 2007

Residence-43

J-FLATS MUSASHIKOYAMA (Note 5)

Ebara, Shinagawa-ku, Tokyo

512.62

1,616.87

1,012

1.0

911

95.8

100.0

November 5, 2007

Residence-44

J-FLATS SENDAGI (Note 5)

Sendagi, Bunkyo-ku, Tokyo

250.44

1,239.10

757

0.7

622

97.3

97.3

January 9, 2008

Residence-45

J-FLATS YOTSUYASAKAMACHI (Note 5)

Sakamachi, Shinjuku-ku, Tokyo

905.083,675.01

2,300

2.3

1,770

92.4

96.7

March 29, 2008

Residence-46

J-FLATS HAKATAHIGASHI

Yoshizuka, Hakata-ku, Fukuoka-shi, Fukuoka

4,590.91

9,465.09

2,250

2.2

2,140

98.2

98.3

November 21, 2007

Residence-47

J-FLATS KAMIGOFUKUKamigofukumachi, Hakata-ku, Fukuoka-shi,
Fukuoka

593.552,523.71

900

0.9

738

95.5

98.5

March 14, 2008

Residence-48

J-FLATS SANGENJAYASangenjaya, Setagaya-ku, Tokyo

153.83954.94

871

0.9

737

89.0

100.0

January 22, 2008

Residence-50

Prime Maison MUSASHINONOMORI

Josuihoncho, Kodaira-shi, Tokyo

5,116.62

4,412.42

1,560

1.5

1,690

95.8

94.0

December 19, 2007

Residence-51

Prime Maison HIGASHISAKURA

Higashisakura, Higashi-ku, Nagoya-shi, Aichi

Residence-52

Prime Maison KAYABAKOEN

Kayaba, Chikusa-ku, Nagoya-shi, Aichi

Residence-53

Tre Di Casa SANGENJAYAResidence-54

Mitezza C6Residence-55

846.053,517.62

1,140

1.1

1,240

93.7

95.6

February 15, 2008

1,129.02

2,301.42

640

0.6

679

85.0

92.4

November 7, 2006

Shimouma, Setagaya-ku, Tokyo

473.85

1,006.89

714

0.7

733

97.0

97.0

January 28, 2008

Oyama-higashi-cho, Itabashi-ku, Tokyo

773.485,249.34

2,260

2.2

2,300

94.7

96.8

March 12, 2008

MAST HAKATA (Note 6)

Hakata Ekimae, Hakata-ku, Fukuoka-shi,
Fukuoka

2,457.01

11,621.67

1,920

1.9

1,960

-

100.0

January 15, 2005

Residence-56

PLATINUM COURT KINSHICHO

Kinshi, Sumida-ku, Tokyo

338.57

1,718.10

1,050

1.0

1,124

-

93.1

September 6, 2006

Residence-57

Clarte MUSASHIKOGANEI Residence

Honcho, Koganei-shi, Tokyo

520.252,676.36

1,450

1.4

1,570

-

86.3

February 2, 2005

43,702.10

161,977.21

80,83080.073,99496.8

97.1

Residential Subtotal

44

Portfolio at a Glance (3)Acquisition Price
Property
No.

Property Name

Site Area (m2)Location

Retail-1

HAMAMATSU Plaza (Note 7)

Kaminishi-cho, Higashi-ku, Hamamatsu-shi,
Shizuoka, etc.

Retail-2

b-town JINGUMAE II

Jingumae, Shibuya-ku, Tokyo

Retail-3

RINKU HAGURAZAKI Plaza (Note 8)

Tajiri-cho Oaza, Gashouji, Sennan-gun, Osaka, etc.

Retail-4

b-town MINAMIAOYAMA

Retail-5
Retail-7

Total Floor Area
(m2)

Price
(Million yen)

Ratio
(%)

Appraisal
Value at End of
Period(Million yen)

As of Sep. 30,
2011

As of Mar. 31,
2012

Occupancy Rate (%)
Completion Date

99,135.98

53,975.49

6,477

6.4

5,615

96.2

100.0

283.83499.67

1,043

1.0

895

100.0

100.0

May 20, 2005

53,231.66

−

4,697

4.7

3,786

100.0

100.0

−

Minamiaoyama, Minato-ku, Tokyo

385.32797.63

1,530

1.5

1,200

73.3

92.3

February 28, 2006

KOJIMA NEW KAMIFUKUOKATEN

Kamifukuoka, Fujimino-shi, Saitama

4,877.90

3,413.40

1,300

1.3

1,120

100.0

100.0

October 14, 1996

b-toss IKEBUKURO

Nishi-Ikebukuro, Toshima-ku, Tokyo

223.381,474.21

1,980

2.0

1,540

100.0

88.8

November 12, 2005

Retail-8

Joy Square YUGAWARA

Chuo, Yugawaramachi, Ashigarashimo-gun,
Kanagawa

5,425.13

6,326.53

1,810

1.8

1,500

100.0

100.0

September 22, 2006

Retail-9

Bell Plaza Shopping Center

Nakamaruko, Ueda-shi, Nagano

23,304.57

6,203.26

1,337

1.3

1,120

100.0

100.0

Retail Subtotal

186,867.77

72,690.19

20,17520.0

16,77797.8

99.8

Portfolio Total

230,569.87

234,667.40

101,006

100.0

90,771

97.3

98.3

Owned as of September 30, 2011

58 properties

106,234 million yen

Acquired in the period ended March 31, 2012

3 properties

4,420 million yen

1 property and part of HAMAMATSU Plaza

9,648 million yen

60 properties

101,006 million yen

Sold in the period ended March 31, 2012
Owned as of March 31, 2012
Notes:(Note 7)(Note 9)

1. Based on information as of March 31, 2012. Occupancy rates are rounded to the nearest first decimal place.
2. Concerning acquisition prices, amounts of less than one million yen are rounded down, and percentages indicate the portion of the portfolio’s total acquisition price for properties owned and are rounded to thenearest first decimal place.
3. The listed site area, total floor area figures and completion dates are based on indications given in the register.
4. The appraisal value at end of period is the amount appraised based on an appraisal by a real estate appraiser or the amount as found in a real estate price survey, rounded down to the nearest million yen.
5. The ratio of site rights (co-ownership rights) for Spacia GOTANDA, J-FLATS MUSASHIKOYAMA, J-FLATS SENDAGI and J-FLATS YOTSUYASAKAMACHI are 387,036/426,933, 117,678/127,609,
89,730/103,842 and 245,317/329,739, respectively. However, “Site Area” indicates the total land area of the real estate in trust, while “Total Floor Area” indicates the floor area of the entire building. The exclusive
portions of the total floor area that the Investment Corporation has acquired are 3,637.18m2, 1,148.58m2, 867.27m2 and 2,253.07m2, respectively.
6. MAST HAKATA is a leasehold property with a general fixed-term land leasehold of a 50 year lease period which began on December 1, 2002, with the Urban Renaissance Agency as the land owner. As such, its“site area” is that which is indicated in the land leasehold agreement.
7. HAMAMATSU Plaza is a commercial complex comprised of five buildings (Ito-Yokado Building, Akachan Honpo Building, XEBIO Building, HAMAPLA Frespo Building and the management building) or
Hamamatsu Plaza East and Hamamatsu Plaza West. Operations began after the property was acquired for ¥15,360 million on July 28, 2005, but a portion was sold on March 30, 2012. As of the end of the fiscal
period ended March 31, 2012 (13th fiscal period) Sekisui House SI Investment Corporation holds a 49% quasi-co-ownership interest in the real estate trust beneficial interest of Hamamatsu Plaza East, but for “sitearea” and “total floor area” that for the entire Hamamatsu Plaza East are indicated. In addition, the HAMAPLA Frespo Building is not included in the “total floor space” because only the land is owned and leased(the buildings on it are owned by the tenants). As “acquisition price” and “appraisal value at end of period” are for the 49% quasi-co-ownership interest, they are not included in the sale portion. With regard to“completion date” the Ito-Yokado Building and management building were completed on November 7, 2000, and Akachan Honpo Building and XEBIO Building were completed on November 9, 2000. As
HAMAPLA Frespo Building its “total floor area” is not indicated because only the land is owned and leased (the buildings on it are owned by the tenants).
8. As for Rinku Hagurazaki Plaza, its “total floor area” and “completion date” are not indicated because only the land is owned and leased (the buildings on it are owned by the tenants).
9. Bell-Plaza Shopping Center is a shopping-complex-type facility, with the Center building and Shop building completed on November 30, 1992 and the Restaurant building completed on July 12, 2006.

45

Major Financial Indicators Concerning Interest-Bearing Debt
Total Assets, Total Interest-Bearing Debt and LTV (Notes 1 and 2)

Diversification Status of Repayment Dates (Notes 3 and 4)
As of the end of March 2012

(million yen)

120,000

Total assets
104,750

104,422

Interest-bearing debt
107,352

LTV(million yen)

112,800

109,664

90,00060%

12,000

55%

9,000

50%

6,000

Long-tern borrowing

51.5%
60,00030,00048.9%
47.1%
51,20849,22948.3%

51,874

49.3%

54,032

58,073

45%

3,000

40%

0

6,587

7,342

8,000

10,137 9,509
6,650

6,500
2,850

0
Period ended
Mar. 2010

Sep. 2010

Mar. 2011

Sep. 2011

Mar. 2012

Ratios of Floating and Fixed Interest Rates (Notes 2 and 5)
Floating

Period ending
Sep.
Mar.
2012
2013

Sep.
2013

Mar.
2014

Mar.
2015

Sep.
2015

Mar.
2016

Sep.
2016

Mar.
2017

Ratios of Short-Term and Long-Term Borrowings (Notes 2 and 5)

Fixed

Short-termLong-term (Note 4)

100%

100%

16.9%
80%

Sep.
2014

46.7%

38.7%

37.1%

37.1%

34.5%

80%

21.8%

21.4%

24.0%

100.0%

100.0%

100.0%

Mar. 2011

Sep. 2011

Mar. 2012

34.6%
26.8%

60%

60%

40%

40%

27.4%

53.3%

61.3%

62.9%

62.9%

65.5%

83.1%

20%

20%

0%

0%

Period ended
Mar. 2010

Sep. 2010

Mar. 2011

Sep. 2011

Mar. 2012

65.4%

Period ended
Mar. 2010

Sep. 2010

Ratio of long-term borrowings and investment corporation bonds
scheduled to be repaid (redeemed) within a year
Notes: 1. LTV = Period-end interest-bearing debt / Period-end total assets (Total interest-bearing debt = Borrowings + Investment corporation bonds + Interest-bearing tenant leasehold and security deposits)
2. The above ratios are rounded to the nearest first decimal place.
3. Does not include interest-bearing tenant leasehold and security deposits.
4. Includes long-term borrowings scheduled to be repaid within one year.
5. Ratio against the total interest-bearing debt.

46

Overview of Unitholders as of March 31, 2012
Major Unitholders

Diversification of Unitholders
Investment Units
Ownership of Investment
Owned
Units Outstanding (%)(units)Name / Company NameJapan Trustee Services Bank, Ltd.
(Trust Account)

25,51922.17

Goldman Sachs International

10,707

9.30

Sekisui House Ltd.

7,800

6.77

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

6,666

5.79

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

5,938

5.16

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

5,913

5.13

Deutsche Bank AG London-PB Non-Treaty
Clients 613

3,627

3.15

Nomura Bank (Luxembourg) S.A.

3,274

2.84

JOINT CORPORATION

3,000

2.60

Spring Investors Co., Ltd.

2,600

2.25

Total

75,04465.21■Note: The status of large holdings as determined by the large share holdings reports(including Reports of Changes) submitted by May 11, 2012 is as follows.
Tower
Investment
Management
Co., Ltd.

Mizuho Trust &Banking Co., Ltd

DIAM
Co., Ltd.

Sumitomo Mitsui
Trust Holdings,
Inc.

17,278 units

9,940 units

14,202 units

11,004 units

Total percentage ofownership

15.02%

8.64%

12.34%

9.56%

Submission dateMar. 7, 2011

Mar. 23, 2012

Mar. 26, 2012

Apr. 19, 2012

Name

Total units held

Financial Institutions (including securities companies)

49 (0.81%)
Mar. 31,2012
6,079
unitholders

Other domestic firms

Foreign firms

Individuals and others

93 (1.53%)
81 (1.33%)
5,856 (96.33%)

52 (0.94%)
90 (1.62%)
76 (1.37%)

Sep. 30,
2011
5,547
unitholders

5,329 (96.07%)
44 (0.81%)
90 (1.66%)
75 (1.39%)

Mar. 31,2011
5,412
unitholders

5,203 (96.14%)

0%

20%

40%

60%

80%

100%

Mar. 31,2012
115,070
units

51,821(45.03%)

14,714(12.79%)28,031(24.36%)

20,504(17.82%)

Sep. 30,2011
115,070
units

53,346(46.36%)

15,527(13.49%)27,488(23.89%)18,709(16.26%)

Mar. 31,2011
115,070
units

50,240(43.66%)

17,885(15.54%)28,883(25.10%)18,062(15.70%)

0%

20%

40%

60%

80%

100%

47

Historical Investment Unit Price
Sekisui House SI Investment Corporation Investment Unit Price Summary(yen)

400,000

2000

Sekisui House SI Investment Corporation investment unit price(left axis)
TSE REIT Index (right axis)
300,000

1500

200,000

1000

100,000

500

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0

Mar. 2009

Sep. 2009

Mar. 2010

Mar. 2011

Sep. 2010

Sep. 2011

0Mar. 2012(units)5,000

Trading volume
4,000
3,000
2,000
1,000
0

H21.03.31 H21.04.30

H21.05.31 H21.06.30

Mar. 2009

H21.07.31

H21.08.31 H21.09.30

H21.10.31 H21.11.30

Sep. 2009

H21.12.31

H22.01.31 H22.02.28

H22.03.31 H22.04.30

H22.05.31 H22.06.30

Mar. 2010

H22.07.31

H22.08.31 H22.09.30

H22.10.31 H22.11.30

Sep. 2010

H22.12.31

H23.01.31 H23.02.28

H23.03.31 H23.04.30

H23.05.31 H23.06.30

Mar. 2011

H23.07.31

H23.08.31 H23.09.30

H23.10.31 H23.11.30

Sep. 2011

H23.12.31

H24.01.31 H24.02.29

Mar. 201248

◇ This document is provided for information purposes only and is not a solicitation for investment, nor a recommendation
or invitation to make specific transactions. We caution readers to contact their securities companies with regard to thepurchase of investment units in Sekisui House SI Investment Corporation and to undertake investment decisions of
their own volition.
◇ This document is not a disclosure document or report based upon the Financial Instruments and Exchange Law, the
Law Concerning Investment Trusts and Investment Corporations, public listing regulations of the Tokyo Stock
Exchange or other related laws or regulations.
◇ Strategies, goals and forward-looking statements contained herein are based upon specific assumptions andjudgments made as of the date of the document in accordance with information available to Sekisui House SI
Investment Corporation at the time. Information herein is subject to impact from risks, uncertainties, assumptions andother factors. Accordingly, strategies, goals and forecasts regarding future dates do not guarantee the Investment
Corporation’s future performance, operating results or financial position. Actual results may differ significantly fromexplicit or implicit statements made herein regarding future performance, operating results, financial position or otherconditions.
◇ While Sekisui House SI Investment Corporation takes reasonable care in the preparation of this document, it does notguarantee the accuracy and completeness of its content. Readers are also cautioned that the contents of thisdocument may be changed or deleted without prior notice.
◇ Making a copy of, or appropriation of, the content contained herein without prior permission is prohibited.
◇ This English language document is an abridged translation of the Japanese language document issued on the same
day and was prepared solely for the convenience of, and reference by, overseas investors. Sekisui House SI
Investment Corporation gives no warranties as to its accuracy or completeness.