Sekisui House SI Asset Management, Ltd.

Sekisui House SI Residential Investment Corporation
Business Results for the 21st Fiscal Period

May 17, 2016

Business Results
for the 21st Fiscal Period
from Oct.1, 2015 to Mar. 31, 2016◇ 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 the purchase ofinvestment units in Sekisui House SI Residential Investment Corporation and to undertake investment decisions at their own
discretion.
◇ This document is not a disclosure document or report under the Financial Instruments and Exchange Act, the Act on Investment
Trusts and Investment Corporations, public listing regulations of the Tokyo Stock Exchange or other related laws and regulations.
◇ Strategies, goals and forward-looking statements contained herein are based upon specific assumptions and judgments made asof the date of the document in accordance with information available to Sekisui House SI Residential Investment Corporation at
the time. Information herein is subject to impact from risks, uncertainties, assumptions and other factors. Accordingly, strategies,
goals and forward-looking statements do not guarantee the Investment Corporation’s future performance, operating results orfinancial position. Actual results may differ significantly from explicit or implicit statements made herein regarding future
performance, operating results, financial position or other conditions.
◇ While Sekisui House SI Residential Investment Corporation has taken due care in the preparation of this document, it does notguarantee the accuracy, completeness, rationality or fairness of its content. Readers are also cautioned that the contents of thisdocument are subject to change or removal without prior notice.
◇ Duplication and reproduction of the content contained herein without prior consent is prohibited.
◇ The material containing the information required under Article 23(1) and (2) of the AIFMD is available at http://www.shsireit.co.jp/site/file/tmp-Gj3B9.pdf

Contents
I. Overview of the 21st FP and Thereafter

VI. Forecasts for the 22nd FP

・Highlights

5・Forecasts for the 22nd FP

32

・Summary of Business Results for the 21st FP

6・Analysis of Change in Forecast Cash Distributions for the 22nd FP

33

・Analysis of Change in Initial Forecast Cash Distributions for the 21st FP

7

・Status of the 21st FP-End Appraisal Value, etc.

8

II. External Growth Results in and after the 21st FP

VII. Growth Strategy Going Forward, Etc.
・General Overview of Phase I and II of Growth Strategy

36・Implementation Status of Phase II of Growth Strategy

37

・Summary of External Growth in and after the 21st FP

10・Growth Strategy in Phase III, the Next Growth Stage

38

・Property Acquisitions Utilizing the Pipeline with Sekisui House

12・Future Distribution Policy

39

・Property Acquisitions Utilizing the Pipeline with Sekiwa Real Estate
Companies

13

・Residential Properties Planned, Developed or Owned by Sekisui House
Group

40

・Property Acquisitions Utilizing the Asset Management Company’s
Proprietary Acquisition Routes

14・Change in Asset Management Fee System

41

・Disposition of 4 Retail Properties and 1 Residential Property

15

・Partial Change to Management Guidelines

42

・[Reference] 7th General Meeting of Unitholders

43

III. Internal Growth Results for the 21st FP
・Occupancy Ratio and NOI Yield

17

・Residential Properties Occupancy Status by Investment Area

18

・Residential Properties New / Renewed Contract Rent Trends

19・Residential Properties Leasing Status on Long-Term Vacancies

20

・Status of Selected Management Data on Residential Properties

21

・Other Measures for Residential Properties

22

・Occupancy Status and Tenant Trends at Retail Properties

23

IV. Financial Activities in and after the 21st FP
・Major Initiatives in and after the 21st FP

25

・Changes in Major Financial Indicators Related to Interest-Bearing Debt

26

V. CSR and Environmental Activities
・Examples of Initiatives in CSR and Environmental Activities

29

VIII. Appendix
・Balance Sheets

45

・Statements of Income

47

・Statements of Cash Flows / Cash Distributions

48

・Summary of Selected Financial Data

49

・History of the Investment Corporation since Listing50

・Portfolio Map

51

・List of Properties Owned at End of Period

53

・List of Fiscal Period-End Estimated Values

58

・Overview of Interest-Bearing Debt

63

・Overview of Unitholders as of March 31, 2016

66

・Historical Investment Unit Price

67

3

MAST LIFE HINO

I. Overview of the 21st FP and Thereafter

プライムメゾン東桜
マスト博多
マスト博多

Highlights
 For the 21st FP, increase of internal reserves which will contribute to stable management going forward were
implemented together with the disposition of retail properties burdened by unrealized loss and the securing of astable cash distribution level
Initial forecast
cash distribution

Revised forecast
cash distribution

Actual cash distribution

Implementation of internal reserves¥2,120 per unit

¥2,120 per unit

¥2,125 per unit

¥47 million(announced November 16, 2015)(announced November 30, 2015)(up ¥5 from initial forecast)(Cumulative internal reserves: ¥174 million)

Management Status in the 21st FP
External growth strategy

Internal growth strategy

Financial strategy• Acquired 3 residential properties for a totalof ¥11.26 billion• Average occupancy
ratio for the fiscal period

96.3%(residences only)• Average borrowing cost rate

1.01%

• Disposed 4 retail properties and 1
residential property for a total of ¥8.8 billion• NOI yield

5.1%(residences only)• Period-end total assets LTV

52.3%

Inclusion in the FTSE EPRA/NAREIT Global Real Estate Index Series was realized in March 2016
through an expansion of market capitalization, increase of liquidity and enhancement of
disclosures with English text, etc.

March 2016:
Start of notification based on AIFMD

Announcement of Growth Strategy for the 22nd FP (Ending Sept. 2016) and Thereafter
Forecast cash distribution
for the 22nd FP

Assumptions of assets
under management¥2,130 per unit

Total acquisition price¥200.7 billion (112 properties )Achieved target of “asset size of ¥200 billion while giving
consideration to the cash distribution level,” the strategic
target of the Phase II growth strategy that the Investment
Corporation has been pursuing, through the acquisition of 4
residential properties at the beginning of the 22nd FP

Aim for an asset size of ¥300 billion and formulate the growth strategy for Phase III, the next growth stage(see p.38 for details)
5Summary of Business Results for the 21st FP
Actual cash distributions
for the 21st FP

 Increase of 0.2% from initial
forecast for the 21st FP¥2,125 per unit

 Increase of 0.1% from resultsof the 20th FP

The decrease of rent business income, etc. due to thedisposition of 4 retail properties was covered by gains onsales and the enhancement of the residential portfolio

Comparison with Forecasts[Reference]
Revised forecast forthe 21st FP

Initial forecast forthe 21st FP(announced Nov. 30, 2015)(announced Nov. 16, 2015)

Fiscal period
ended Mar. 31, 2016(183 days)(actual)◇Factors for difference from initial forecast

Difference・ Operating income

Operating revenue¥6,429 million¥6,458 million¥6,543 million¥84 million

1.3%

Operating income¥2,683 million¥2,701 million¥2,741 million¥40 million

1.5%

Ordinary income¥2,161 million¥2,160 million¥2,214 million¥53 million

2.5%

Net income¥2,158 million¥2,158 million¥2,210 million¥52 million

2.4%

-

-

¥47 million¥47 million-¥2,120¥2,120¥2,125¥5

0.2%

Provision for reserve for
reduction entry
Cash distributions per unit

Operating revenue
Decrease in rent revenue: -¥113 million
Decrease in other rent business revenue: -¥11 million
Increase in gain on sales of real estate properties : +¥210million

Operating expense
Increase in expenses related to rent business
Increase in other business expenses::+¥12 million+¥32 million::+¥0 million-¥12 million

・ Ordinary income
Increase in non-operating revenue
Decrease in non-operating expenses

Comparison with Previous Fiscal Period
Fiscal period
ended Sept. 30, 2015(183 days)(actual)Fiscal period
ended Mar. 31, 2016(183 days)(actual)◇Factors for change from previous period’s results

Change・ Operating income

Operating revenue¥6,411 million¥6,543 million ¥131 million 2.0%

Operating income¥2,743 million¥2,741 million-¥1 million -0.1%

Ordinary income¥2,211 million¥2,214 million¥2 million

0.1%

Net income¥2,209 million¥2,210 million¥0 million

0.0%¥49 million¥47 million¥2,122¥2,125

Provision for reserve for
reduction entry
Cash distributions perunit-¥2 million -4.7%¥3

Operating revenue
Decrease in rent revenue: -¥21 million
Increase in other rent business revenue: +¥23 million
Increase in gain on sales of real estate properties : +¥129 million

Operating expense
Increase in expenses related to rent business
Increase in other business expenses::+¥90 million+¥42 million::-¥2 million-¥7 million

・ Ordinary income

0.1%

Decrease in non-operating revenue
Decrease in non-operating expenses

Note : Amounts less than the indicated unit are rounded down and percentage figures are rounded to the nearest first decimal place. The same applies hereafter.

6

Analysis of Change in Initial Forecast Cash Distributions for the 21st FP
Impact on
distributable profit

Factors of change

Impact on
cash distributions(1) Decrease in rent business income from disposition of 4 retail properties-¥173 million-¥170(2) Gain on sales from disposition of 4 retail properties+¥188 million+¥184-¥3 million-¥3(4) Gain on sale from disposition of Esty Maison IMAIKE+¥22 million+¥21(5) Increase in rent business income from properties additionally acquired in the 21st FP(Prime Maison YOKOHAMA NIHON-ODORI and KOBE Women’s Student Housing)+¥40 million+¥39(6) Increase in other business expenses such as non-deductible consumption tax from disposition of 4 retail properties-¥32 million-¥31(7) Decrease in non-operating expenses such as from early repayment using proceeds from the disposition of 4 retail properties, etc.

+¥11 million+¥11(8) Amount of Internal reserve of gain on sales from disposition of 4 retail properties and Esty Maison IMAIKE-¥47 million-¥46(3) Decrease in rent business income from disposition of Esty Maison IMAIKE

(Yen)
2,300
2,200

(1)

+¥184

(3)
Decrease in rent
business income
from disposition of
Esty Maison
IMAIKE

2,100
2,000
Decrease in rent
business income
from disposition of 4
retail properties

1,900

1,800
1,700

Gain on sale from
disposition of
Esty Maison
IMAIKE

Gain on sales from
disposition of 4
retail properties

Initial forecast
cash distribution
for the 21st FP¥2,120 per unit

-¥170

(2)

-¥3

Increase in rent
business income
from properties
additionallyacquired in the
21st FP

+¥39

(6)

(5)

Increase in otherbusiness expenses

+¥21
(4)

-¥31

Decrease in nonoperating expenses,
etc.

+¥11
(7)

(8)
Amount of Internal
reserve of gain on
sales from
disposition of 4
retail properties andEsty Maison
IMAIKE-¥46
Actual cash
distribution
for the 21st FP¥2,125 per unit

1,600
1,500

7

Status of the 21st FP-End Appraisal Value, etc.
Changes in unrealized Gain/Loss and NAV per Unit in the Entire Portfolio(million yen)
20,000

Unrealized gain / loss (left axis)

17,50015,000¥87,444(yen)
150,000

NAV per Unit (right axis)¥92,880¥97,222¥106,043¥101,898

125,000
100,000

12,50010,00075,0007,500

50,0005,000
25,0002,500
0

0+¥1,488 million+¥5,947 million+¥9,980 million+¥14,691 million+¥18,864 million

End of 17th FP(Mar. 31, 2014)

End of 18th FP(Sept. 30, 2014)

End of 19th FP(Mar. 31, 2015)

End of 20th FP(Sept. 30, 2015)

End of 21st FP(Mar. 31, 2016)

Appraisal value, etc.

¥149,737 million¥173,301 million¥194,662 million¥200,694 million¥207,565 million

Period-end book value¥148,249 million¥167,353 million¥184,681 million¥186,002 million¥188,701 million

Unrealized gain/loss¥1,488 million¥5,947 million¥9,980 million¥14,691 million¥18,864 million

Unrealized gain/loss ratio

+1.0%

+3.6%

+5.4%

+7.9%

+10.0%

Note : NAV per unit for each fiscal period is calculated by subtracting total distributions in each fiscal period from the amount of market value net assets based on appraisal value, etc. and dividing the obtained amount with the number of investment units
issued as of the end of each fiscal period.

Retail Property

Residence

Status by Asset Class
End of 20th FP

End of 21st FP

Appraisal value, etc.

¥189,194 million¥203,833 million

Period-end book value¥172,889 million¥183,523 million

Unrealized gain / loss+¥16,304 million+¥20,309 million+9.4%+11.1%

Appraisal value, etc.

¥11,500 million¥3,732 million

Period-end book value¥13,113 million¥5,177 million

Unrealized gain / loss-¥1,612 million-¥1,445 million-12.3%-27.9%

Unrealized gain / loss ratio

Unrealized gain / loss ratio

Major factors in the change of unrealized gain / loss ratio
Unrealized gain ratio increased 1.7 points
 The appraisal values, etc. increased at 87 out of 103 properties due to decrease of cap rate, etc.
(Increased at 87 properties, maintained at 11 properties and decreased at 5 properties)
 Acquired new properties (3 properties) at price discounted from appraisal value during the 21st FP

Unrealized loss ratio expanded 15.6 points
 The appraisal value, etc. of both properties increased due to decrease of the cap rate, etc.
 While the unrealized loss ratio increased, the amount of unrealized loss decreased with thedisposition of 3 properties burdened with unrealized loss at the end of the 20th FP

Note: Period-end unrealized gain / loss ratio = Period-end unrealized gain / loss ÷ Period-end book value
Period-end unrealized gain / loss = Period-end appraisal value, etc. – Period-end book value
The “Appraisal value, etc.” indicates either the appraisal value or survey value

8Prime Maison YOKOHAMA NIHON-ODORIII. External Growth Results in and after the 21st FP

プライムメゾン東桜
マスト博多
マスト博多

Summary of External Growth in and after the 21st FP (1)Prime Maison
YOKOHAMA NIHON-ODORIMAST LIFE HINO

KOBE Women’s Student Housing

Prime Maison SHIBUYA and 3 other properties

Achieved
asset size of¥200 billion¥200.7 billion¥193.8 billion¥191.0 billion(108 properties)-¥8.09 billion(110 properties)-¥0.30 billion+¥1.29 billion+¥4.27 billion
RINKU HAGURAZAKI Plaza and 3 other properties(112 properties)+¥6.81 billion+¥5.70 billion

Esty Maison IMAIKE

Rate ofresidential properties

Rate ofresidential properties

Rate ofresidential properties

93.0%

97.2%

97.3%

End
of 20th FP
2015年9月期末(Sept.
30, 2015)（第20期末）Internal
reserve withproperty
dispositions

Total amount¥127 million

2015.10.1
Oct. 1,
2015

2015.11.30
Nov. 30,20152016.1.28
Jan.
28,
2016

2016.1.29
Jan.
29,
2016

2016.3.1
Mar. 1,
2016

Internally reserve part of gain on sales as reserve for reduction entry
for future stable management

End of 21st FP
2016年3月期末(Mar.
31, 2016)（第21期末）Total amount¥174 million

2016.4.1
Apr. 1,
2016

Reinforce the stability of the profit base by enhancing
residential portfolio

4 retail properties and 1 residential property were disposed and the residential portfolio was enhanced through the acquisition of 7
residential properties primarily based on the pipeline with the Sekisui House Group. Moreover, the stability of the financial base wasreinforced by internally reserving part of the gain on sales from the disposition of the properties as reserve for reduction entry.

As of date of
本書の日付現在
document

Reinforcement of the stabilityof the financial base

Note : The above asset sizes are based on the total acquisition price as of each period and amounts below the first decimal place are rounded down. The rates of residential properties are calculated based on the acquisition price ofeach asset class as of each period and are rounded to the nearest first decimal place.

10Summary of External Growth in and after the 21st FP (2)Status of Residential Portfolio
Diversification statusby property age(based on acquisition price)

Diversification status by area(based on acquisition price)

End of 20th FP(Sept. 30, 2015)

Major Cities
Greater Tokyo /Nationwide
Major Urban Areas
27.6%
69.0%
Greater Tokyo

72.4%

Diversification status
by walking distance to station(based on acquisition price)

Less than 5 years
6.2%

10 yearsor more29.6%

9.3 years 5 years toless than
10 years

Major Cities
Nationwide

End of 21st FP(Mar. 31, 2016)

Greater Tokyo /Major Urban Areas

28.8%

Greater Tokyo

67.2%

71.2%
Greater Tokyo /Other Urban Areas

3.9%

Less than 5 years
35.7% 8.1%

Major Cities
Nationwide

Greater Tokyo /Major Urban Areas

28.8%

67.4%

Greater Tokyo

71.2%
Greater Tokyo /Other Urban Areas

3.8%
Primarily Greater Tokyo

100m2 or more
0.7%

26.3%

Within 10
Minute walk

Average area
per unit
30m2 to less 39.6㎡
than 50m2

90.0%
More than 3 minutes
to within 5 minutes

Less than 30m

45.9%

27.1%

29.0%
More than 10 minutes
9.4%

Within 3 minutes

100m2 or more
0.7%

50m2 to lessthan 100m2

32.6%
Less than 30m2
23.9%
More than 5 minutes
Average
Average area 50.5%
to within 10 minutes Within 10
property age
Minute walk
per unit
27.9%2
9.2 years 5 years to
90.6%
30m to less 37.9㎡
than 50m2
less thanMore than 3 minutes
25.0%
10 years
to within 5 minutes
30.2%
56.1%

10 years or more

As of dateof document

Within 3 minutes
31.5%

58.9%

10 years or more

50m2 to lessthan 100m2

10.0%

More than 5 minutes
to within 10 minutes

34.9% Average
property age

Greater Tokyo /Other Urban Areas
3.5%

More than 10 minutes

Diversification status by floor area(based on leasable residential units)

35.0%

Less than 5 years

10.4%

More than 10 minutes
9.1%

Within 3 minutes
32.8%

50m2 to lessthan 100m2
23.6%

More than 5 minutes
to within 10 minutes Within 10
Minute walk
30m2 to less27.4%
than 50m2
9.0 years 5 years to
90.9%
25.2%
less thanMore than 3 minutes
10 years
to within 5 minutes
54.7%
30.7%
Averageproperty age

Primarily new properties

Primarily properties near stations

100m2 or more
0.6%
Less than 30m2

Average area
per unit

50.6%

37.8㎡

Primarily single and compact types

Note: The ratios of the above diversification statuses are rounded to the nearest first decimal place. Accordingly, the ratios may not add up to 100% respectively. Also, “average property age” uses the date of this document as the reference date and is
calculated by seeking the weighted average of the property age of each property with the investment ratio calculated based on the acquisition price. “Average area per unit” is calculated based on the total leasable residential area of owned properties
and the total number of leasable residential units as of each period. Both are rounded down to the nearest first decimal place.

11

Property Acquisitions Utilizing the Pipeline with Sekisui House
Acquired “Prime Maison” series properties planned/developed through property planning meetings sponsored by Sekisui House in which
the Asset Management Company participated
Realization of past efforts to expand opportunities to acquire high-quality residential properties
Prime Maison YOKOHAMA NIHON-ODORIGreater Tokyo / Major
Urban Areas

Property age
1.8 years

Acquired in
the 21st FP

Prime Maison HATSUDAI

Prime Maison SHIBUYAGreater Tokyo / Major
Urban Areas

Property age
1.8 years

Acquired in
the 22nd FP

Greater Tokyo / Major
Urban Areas

Property age
1.4 years

Acquired in
the 22nd FP

Acquisition price

Acquisition price

Acquisition price¥4,270 million¥2,190 million¥2,700 million

Appraisal value

Appraisal value

Appraisal value¥4,690 million¥2,300 million¥2,850 million

Appraisal NOI yield

Appraisal NOI yield

Appraisal NOI yield

5.1%

4.5%

4.7%

Occupancy ratio

Occupancy ratio

Occupancy ratio

94.5%

94.7%

89.9%

(As of March 31, 2016)(As of March 31, 2016)(As of March 31, 2016)

Location

Honcho, Naka-ku, Yokohama-shi,
Kanagawa and other

Nearest station

Approx. 2-minute walk from Nihonodori Station on the Minatomirai Lineof Yokohama Minatomirai Railway

Structure/
number of floors

Location

Shibuya, Shibuya-ku, Tokyo

Location

Hatsudai, Shibuya-ku, Tokyo

Nearest station

Approx. 4-minute walk from Shibuya
Station on the JR Lines and approx. 5minute walk from Shibuya Station on
the Tokyo Metro and Tokyu Toyoko
Lines and other

Nearest station

Approx. 3-minute walk from Hatsudai
Station on the Keio Shinsen LineRC, 13F/B1F

Structure/
number of floors

RC, 13F

Structure/
number of floors

RC, 14F/B1F

Leasable units

126 units (and 1 shop section and 10
office sections)Leasable units

70 units

Leasable units

106 units

Acquisition date

January 29, 2016

Acquisition date

April 1, 2016

Acquisition date

April 1, 2016

Leasing method

Master lease agreement,
pass-through type

Leasing method

Master lease agreement,
pass-through type

Leasing method

Master lease agreement,
pass-through type

Residence type

Single and compact type

Residence type

Single and compact type

Residence type

Single and compact type

Note: The above “appraisal values” are those on the appraisal reports by real estate appraisers as of the acquisition of the proper ties and appraisal NOI yields are calculated by dividing the appraisal NOI based on the direct capitalization method on theappraisal reports by the acquisition price and rounded to the nearest first decimal place. Also, the reference date for the property ages is the date of this document, and property ages are rounded down to the nearest first decimal place. The same follows
hereafter.

12

Property Acquisitions Utilizing the Pipeline with Sekiwa Real Estate Companies
In addition to ongoing acquisitions of “MAST” series properties from Sekiwa Real Estate, acquired residential properties from Sekiwa Real
Estate Kansai for the first time
Maximum utilization of the nationwide network of the Sekiwa Real Estate GroupMAST LIFE HINOGreater Tokyo / Other
Urban Areas

Location

Esty Maison KOBE-SANNOMIYA

Esty Maison UEMACHIDAI
Property age
6.3 years

Acquired in
the 21st FP

Major Urban Areas

Property age
10.7 years

Acquired in
the 22nd FP

Major Urban Areas

Property age
9.1 years

Acquired in
the 22nd FP

Acquisition price

Acquisition price

Acquisition price¥1,290 million¥950 million¥970 million

Appraisal value

Appraisal value

Appraisal value¥1,320 million¥978 million¥975 million

Appraisal NOI yield

Appraisal NOI yield

Appraisal NOI yield

5.5%

5.4%

5.5%

Occupancy ratio

Occupancy ratio

Occupancy ratio

95.8%

96.2%

100%

(As of March 31, 2016)(As of March 31, 2016)(As of March 31, 2016)

Shinmachi, Hino-shi, Tokyo

Location

Uehonmachi-nishi, Chuo-ku,
Osaka-shi, Osaka

Location

Onoe-dori, Chuo-ku, Kobe-shi, Hyogo

Nearest station

Approx. 7-minute walk from Kobesannomiya Station on the Hanshin
Main Line and approx. 9-minute walkfrom Sannomiya Station on the JR
Tokaido Main Line and others

Nearest station

Approx. 2-minute walk from Hino
Station on JR Chuo Main Line

Nearest station

Approx. 4-minute walk from Tanimachi
6-chome Station Nagahori TsurumiRyokuchi Line and Tanimachi Line on
the Osaka Municipal Subway

Structure/
number of floors

RC, 12F/B1F

Structure/
number of floors

SRC, 12F/B1F

Structure/
number of floors

RC, 14F

Leasable units

72 units (and 1 shop section)

Leasable units

41 units

Leasable units

56 units

Acquisition date

October 1, 2015

Acquisition date

April 1, 2016

Acquisition date

April 1, 2016

Leasing method

Master lease agreement,
pass-through type

Leasing method

Master lease agreement,
pass-through type

Leasing method

Master lease agreement,
pass-through type

Residence type

Single and compact type

Residence typeCompact and family type

Residence type

Single and compact type

Note: The property names of Esty Maison UEMACHIDAI and Esty Maison KOBE-SANNOMIYA are CEREZO COURT UEMACHIDAI AVANT and la Waison KOBE-SANNOMIYA respectively as of the date of this document. However, as the brand names forthese properties are to be changed to Esty Maison as of June 1, 2016, property names after the change are indicated. The same follows hereafter.

13

Property Acquisitions Utilizing the Asset Management Company’s Proprietary
Acquisition Routes
Utilized the proprietary aquisition routes of the Asset Management Company and acquired a student housing managed and operated by
Sekiwa Kanri Kansai a wholly-owned subsidiary of Sekiwa Real Estate Kansai
Further deepening of cooperative system with the Sekisui House Group and launch of investment in a new type of residential asset<Restaurant>

KOBE Women’s Student Housing
Property age
14.2 years

Major Urban Areas

Acquired in
the 21st FP<Party room><Free school bus>

Student
housing

Acquisition price¥5,700 million
Women’s student housing with a restaurant serving breakfast and dinner, a party room, freeschool buses, 24-hour placement of staff, etc., providing substantial life support services and an
excellent security system

Appraisal value¥5,720 million

Location

Appraisal NOI yield

Koyocho Naka, Higashinada-ku, Kobe-shi, Hyogo
Approx. 4-minute walk from Island Center Station on the Kobe
New Transit Rokko Liner

Nearest station
Structure/ number of floors

5.7%
Occupancy ratio

Leasable units

770 units (and 1 mail delivery station section)

Acquisition date

March 1, 2016
： Master lease agreement with rent
guarantee type (10 years)
Mail delivery station portion ： Master lease agreement,
pass-through type
Residential portion

100%
Leasing method(rent guarantee type)(As of March 31, 2016)[Number of women’s students in major government designated cities (FY 2015)][University enrollment rate (including junior colleges)]
60%
55%

The university enrollment rate is on a
gentle upward trend

SRC, 19F/B1F

56.6% (Women)

Kobe has the third largest female student population after Kyoto and Nagoya
66,77056.5% (Overall)

47.6% (Women)

44,58550%

35,29732,26045%

28,807
20,181

University enrollment rate (overall)University enrollment rate (Women)

45.2% (Overall)

12,97911,584

10,247

Kawasaki

Chiba

Osaka

40%
1995

2000

2005

2010

2015 (year)* Source: Ministry of Education, Culture, Sports, Science and Technology’s “Basic Research on School”

Kyoto

NagoyaKobe

Yokohama

Fukuoka

Sapporo* Source: Ministry of Education, Culture, Sports, Science and Technology’s “Basic Research on School”

14Disposition of 4 Retail Properties and 1 Residential Property
Obtained gain on sale while controlling the negative impact on cash distributions from the actualization of unrealized loss of some properties
Promoting qualitative improvement of the portfolio

Simultaneous disposition of 4 retailproperties as of Nov. 30, 2015
Disposition of 1 residential property asof Jan. 28, 2016

Disposition priceBook value

Disposition expenses

Gain on sale

¥8,500 million¥7,975 million¥336 million+¥188 million¥300 million¥265 million¥12 million+¥22 million

Internally reserved part of gain on sale (¥47 million) as reserves for reduction entry in the 21st FP

Total gain on sale+¥210 million
Total for5 disposed assets

Utilize for measures that will contribute to securing
stable cash distribution level going forward, etc.

Overview of Disposed Assets (4 Retail Properties and 1 Residential Property)
RINKU HAGURAZAKI Plaza

KOJIMA × BIC CAMERA
Kamifukuoka store

Joy Square YUGAWARA

Bell Plaza Shopping Center

Esty Maison IMAIKE

Location

Sennan-gun, Osaka

Fujimino-shi, Saitama

Ashigarashimo-gun,
Kanagawa

Ueda-shi, Nagano

Nagoya-shi, Aichi

Acquisition price¥3,624 million¥1,300 million¥1,810 million¥1,355 million¥300 million

Book value¥3,653 million¥1,247 million¥1,699 million¥1,374 million¥265 million

Appraisal value¥4,010 million¥1,140 million¥1,580 million¥1,190 million¥207 million

Property age- (Sokochi)

19.1 years

9.1 years

22.5 years(Average for 4 buildings)

24.3 years

Property name

Exterior photo Reduced future management risk through the disposition of 4 suburban retail properties thatare easily affected by economic trends and demographic changes, etc.
 Reduced the risk of increasing repair costs in the future through the disposition of a residential
property that has aged considerably

Avoid risk of decreasing
profitability that could realize
while reinforcing the stabilityof the profit baseNote: “Book value” is the value as of the date of disposition, “Appraisal value” is the amount appraised based on an appraisal by a real estate appraiser as of the end of the 20th fiscal period ended September 2015 for the 4 retail properties and as of January 1,
2016 for Esty Maison IMAIKE and both are rounded down to the nearest whole number. Also, “Property age” uses each disposition date as the reference date and is rounded down to the nearest first decimal place.

15

KOBE Women’s Student Housing

III. Internal Growth Results for the 21st FP

プライムメゾン東桜
マスト博多
マスト博多

Occupancy Ratio and NOI Yield
Monthly Occupancy Ratio
Residential properties

Other real estate in trust (retail properties)

Total

100%

97.5%

97.4%

97.1%

97.2%

96.7%

95%

90%

85%

80%

75%
Mar.
Apr.
2014
End of17th FP

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.
2015

Feb.

End of18th FP

Mar.

Apr.

May

June

July

End of19th FP

Sept.

Oct.

Nov.

End of20th FP

Dec.

Jan.
2016

Feb.

Mar.
End of21st FPNOI yields of owned properties at period-end

Occupancy Ratios
FP ended Sept. 30, 2015
(20th FP)Aug.

FP ended Mar. 31, 2016
(21st FP)

fiscal period ended
Sept. 30, 2015
(20th FP)

fiscal period ended
Mar. 31, 2016
(21st FP)As of end of

Average for

As of end of

Average forthe fiscal period

the fiscal period

the fiscal period

the fiscal period

Residential properties

96.0%

95.5%

97.0%

96.3%

5.0%

5.1%

Other real estate in trust(retail properties)

100.0%

99.9%

100.0%

100.0%

5.3%

3.2%

Total

96.7%

96.2%

97.2%

96.5%

5.0%

5.1%

Note 1: “Occupancy Ratios” in the above chart indicate the rate of total leased floor area to the total leasable floor area for the properties in each category held by the Investment Corporation as of the end of each month from March 2014 to March 2016.
Note 2: Figures for “Average for the fiscal period” in the above table indicate the average of occupancy ratios as of the end of each month during the fiscal period ended September 30, 2015 (20th FP) and the FP ended Mar. 31, 2016 (21st FP).
Note 3: “NOI yields of owned properties at period-end” in the table are percentages calculated by dividing the annualized leasing NOI by the total acquisition price with regards to each asset class the Investment Corporation owns as of the end of the 20thFP (ended Sept. 2015) and the 21st FP (ended Mar. 2016).
Note 4: All of the figures above are rounded to the nearest first decimal place.

17

Residential Properties Occupancy Status by Investment Area
Greater Tokyo / Major Urban Areas

Greater Tokyo / Other Urban Areas

Major Cities Nationwide

Continuing to maintain high occupancy in Tokyo’s 23
wards as well as high occupancy of over 98% (period
average) in the Yokohama and Kawasaki areas

There was weakness in occupancy at the beginning of
the period but with gradual recovery and support by thehigh occupancy of newly acquired property

The period-end occupancy ratio was 97.7% as a result ofstrong performance with the contribution of highoccupancy in the Nagoya and Fukuoka areas

Average occupancy ratio during the FP:

Average occupancy ratio during the FP:

Average occupancy ratio during the FP:

96.2% (+0.4pt year-on-year)

94.6% (-1.5pt year-on-year)

96.6% (-0.2pt year-on-year)

Number of properties:

66 properties

Total leasable area:

172,475.36m2

Number of leasable units:

5,035 units

Area data

Area data

Number of properties:

6 properties

Total leasable area:

18,663.14m2

Number of leasable units:

420 units

Number of properties:

34 properties

Total leasable area:

162,597.04m2

Number of leasable units:

3,645 units

Area data

As a result of focusing on leasing for units that were vacant for a long period in addition to normal leasing, the average occupancy
ratio for the 21st FP increased 0.1 points year-on-year

Change in Occupancy Ratios by Investment Area

Greater Tokyo/Major Urban Areas
Major Cities Nationwide

Greater Tokyo / Other Urban Areas
Residences overall

100%
97.7%

97.5%

96.8%

97.7%
96.7%

96.6%
95.9%

96.3%

96.6%
96.6%
95%

96.4%
97.0%

96.7%

95.5%
94.6%

95.3%

94.1%

96.7%

96.0%

18

96.2%

90%

Average occupancy ratio： 95.7%during the 18th FP
85%
End of Mar. 2014(End of 17th FP)

End of June

Average occupancy ratio
during the 19th FP ： 96.2%

End of Sept. 2014(End of 18th FP)

End of Dec.

Average occupancy ratio
during the 20th FP ： 95.5%

End of Mar. 2015
(End of 19th FP)

End of June

Average occupancy ratio： 96.3%during the 21st FP

End of Sept. 2015
(End of 20th FP)

End of Dec.

End of Mar. 2016(End of 21st FP)

Note: “Change in occupancy ratios by investment area” above shows the month-end occupancy ratios with classification by investment area based on residential properties owned as of the end of each month and are rounded to the nearest fist decimal place.
Moreover, the “average occupancy ratios during the periods” are the average occupancy ratios as of the end of each month duri ng each period. Furthermore, “area data” shows figures for properties owned as of the end of the 21st FP (ended March 31, 2016).

18

Residential Properties New / Renewed Contract Rent Trends
The change in rent in new contracts (/rate) shrunk compared with the 20th FP but has been in the positives for two consecutive periods.
Change in rent in contract renewals has been positive for three consecutive periods

Rent Trends in New Contracts

Rent Trends in Contract Renewals

17th FP

18th FP

19th FP

20th FP

21st FP

No. of new contract

704

699

834

816

887

Total increase
in rent(number of cases)¥736
thousand(190)¥1,101
thousand(225)¥1,357thousand(314)¥1,744thousand(316)¥1,576thousand(327)

Total decrease
in rent(number of cases)-¥2,265
thousand(302)-¥1,845thousand(244)-¥1,431
thousand(253)-¥1,326
thousand(228)-¥1,517thousand(277)

Change in rent (net)-¥1,528
thousand-¥744
thousand-¥73
thousand¥417
thousand¥59
thousandRate of change in rent
against previous rent

-1.8%

-0.8%

-0.1%

0.4%

0.1%

Decreased rent contract ratio

100%
75%

42.9%

50%
30.1%

No rent change contract ratio

34.9%

32.9%

25%
27.0%

32.2%

30.3%

Increased rent contract ratio

27.9%

17th FP

18th FP

19th FP

20th FP

21st FP

No. of renew contract

923

972

1,136

1,013

1,406

Total increase
in rent‒¥20
thousand(6)¥224
thousand(77)¥130
thousand(54)¥62
thousand(31)-¥31
thousand(19)-¥38
thousand(5)-¥2
thousand(1)-¥5
thousand(2)-¥7
thousand(2)

Change in rent (net)-¥31
thousand-¥17
thousand¥222
thousand¥125
thousand¥55
thousandRate of change in rent
against previous rent

-0.0%

-0.0%

0.2%

0.1%

0.0%

(number of cases)

Total decrease
in rent(number of cases)

Decreased rent contract ratio

100%

No rent change contract ratio

0.5%

2.1%

31.2%

32.0%

33.3%

31.9%

37.6%

38.7%

36.9%

50%

97.9%

93.1%

98.9%

19th FP

20th FP

21st FP

Rent Trends in New Contracts by Investment Area
21st FP

No. of new contracts

Change in rent (net)

94.5%

97.7%

25%
0.6%
0%

18th FP

0.1%

0.2%

0.1%

75%

0%
17th FP

Increased rent contract ratio

17th FP

18th FP

6.8%

5.3%

2.2%

19th FP

20th FP

21st FP

Rent Trends in Contract Renewals by Investment Area

Rate of change in rent

Greater Tokyo /Major Urban Areas
Greater Tokyo /Other Urban Areas

575¥67 thousand

0.1%

60

-¥28 thousand

Major Cities Nationwide

252

Total

887

21st FP

No. of renew contracts

Change in rent (net)Rate of change in rent

857

¥30 thousand

0.0%

-0.5%

Greater Tokyo /Major Urban Areas
Greater Tokyo /Other Urban Areas98¥3 thousand

0.0%¥19 thousand

0.1%

Major Cities Nationwide

451¥22 thousand

0.1%¥59 thousand

0.1%

Total

1,406

¥55 thousand

0.0%

Note: The “rate of change in rent against previous rent” and “rate of change in rent” above are the ratio of the total change in rent (net) for each period for new or renewed contracts against the total of previous rent and both ratios are rounded to thenearest first decimal place. The same applies hereafter.

19

Residential Properties Leasing Status on Long-Term Vacancies
Status of New Contracts by Length of Vacancy
FP ended September 30, 2015 (20th FP)

FP ended March 31, 2016 (21st FP)

Length of vacancy since cancellation date of previous tenant

Overall

Length of vacancy since cancellation date of previous tenant

OverallLess than 100 days

100 days or moreOf this, 200 days or
moreLess than 100 days

100 days or moreOf this, 200 days or
more

No. of new contract(Composition ratio)

816(100%)

637(78.1%)

179(21.9%)

36(4.4%)

887(100%)

600(67.6%)

287(32.4%)

78(8.8%)

Total increase
in rent(number of cases)¥1,744thousand(316)¥1,476thousand
(270)

¥268
thousand(46)¥91
thousand(3)¥1,576thousand(327)¥1,176thousand
(254)

¥400
thousand(73)¥54
thousand(14)

Total decrease
in rent(number of cases)-¥1,326
thousand
(228)

-¥719
thousand
(149)

-¥607
thousand
(79)

-¥241
thousand(23)-¥1,517thousand
(277)

-¥608
thousand
(133)

-¥909
thousand
(144)

-¥352
thousand(51)

Change in rent (net)¥417
thousand¥757
thousand-¥339
thousand-¥150
thousand¥59
thousand¥567
thousand-¥508
thousand-¥298
thousandRate of change in rent
against previous rent

0.4%

1.0%

-1.5%

-3.0%

0.1%

0.8%

-1.5%

-3.2%

 As a result of focusing on leasing for units that were vacant for along period, number of new contracts and the composition ratio
at units that have been vacant for 100 or more days since thecancellation date of the previous tenant significantly increased As shown on the right, the number of units vacant at the end of
period with a vacancy period of 100 days or more decreased from91 to 40 units from the end of the 20th FP to the end of the 21st FP(of the above-mentioned 91 units, 82 were newly contracted
during the 21st FP)
From a mid- to long-term perspective the progress ofleasing of units that were vacant for a long period has had apositive effect on the occupancy ratio and profitability

Changes in Number of Units Vacant at Period-End
by Length of Vacancy
Length of vacancy
100 days or more

Length of vacancy
Less than 100 days

91 units

82 of 91 units
newly contracted
during the 21st FP

244 units

Decrease of
51 units
40 units

229 units

FP ended Sept. 30,
2015(20th FP)

183-day
periodFP ended Mar. 31,
2016(21st FP)

Number of
vacant units

335 units

Decrease of
66 units

269 units

Number of leasable units(pass-through type)

6,959 units

Increase of
149 units

7,108 units

Note: In the “length of vacancy since cancellation date of previous tenant” above, the figure for units that were vacant at the point of acquisition regarding properties acquired during each period are calculated with the date of acquisition as the first day of
vacancy. Moreover, “number of vacant units” and “number of leasable units” above do not include shops and offices within residential properties and units of residential properties that have master lease agreements with rent guarantee concluded
with master lease companies and that are leased to a single tenant for its calculation.

20

Status of Selected Management Data on Residential Properties
Trend in Unit Rent per Tsubo for Occupied Space
Based on residential properties owned
as of the end of the 21st FP

Based on residential properties owned as of the end of the 20th FP
End of FP
ended September 2015(end of 20th FP)

End of FP
ended March 2016(end of 21st FP)

End of FP ended March 2016(end of 21st FP)

Rate of change
in unit rent per tsubo

Period-end
occupancy ratio

Period-end unit
rent per tsubo

Period-end
occupancy ratio

Period-end unit
rent per tsubo(against end of 20th FP)

Period-end
occupancy ratio

Period-end unit
rent per tsubo

Greater Tokyo /Major Urban Areas

95.4%¥12,849

96.3%¥12,839

-0.1%

96.2%

¥12,835

Greater Tokyo /Other Urban Areas

95.9%¥7,641

96.1%¥7,653

0.2%

96.0%

¥7,832Major Cities
Nationwide

94.5%¥7,31496.0%¥7,312

-0.0%

96.0%

¥7,312Overall

95.1%¥10,532

96.2%¥10,520

-0.1%

96.1%

¥10,536* Above “Based on residential properties owned as of the end of the 20th FP” is calculated with the exclusion of Esty Maison IMAIKE disposed as of January 28, 2016 for its calculation. Moreover, the figures do not include the rent of shops and offices
within residential properties as well as the floor area and the rent of residential properties that have master lease agreements with rent guarantee concluded with master lease companies for its calculation.

Changes in Key Money Acquisition Rate
100%

Changes in Renewal Rate

The key money acquisition rate recovered to the
50% level in the 21st FP

100%

Continuously secured 80% level for renewal rate

50%

60.8%

52.8%

54.7%

48.8%

56.6%

17th FP

18th FP

19th FP

20th FP

21st FP

83.2%

85.2%

85.8%

82.8%

87.4%

17th FP

18th FP

19th FP

20th FP

21st FP50%

0%

Note: The “key money acquisition rate” indicates ratio of cases in which the Investment Corporation was able to acquire key money among the number of new contracts in each period. Moreover, the “renewal rate” is the ratio of the number of residential units
at which contracts were renewed among the number of residential units with contracts maturing during each period. Both of these ratios are rounded to the nearest first decimal place.

21

Other Measures for Residential Properties
Construction for Replacement to LED Light Fixtures
 Implemented LED light fixture replacement work in the 21st FP as well in order to reduce electricity use costs (consumption), etc. atcommon areas
Period of
implementation

Property nameConstruction cost

Expected amount ofannual decrease

18th FP to 20th FP

Prime Maison GINZA EAST and
13 other properties

Approx.

Approx.

¥41 million¥12 million per year

21st FP

Prime Maison KAMOKAMOGAWA and5 other properties

Approx.

Approx.

¥21 million¥6 million per year

Approx.

Approx.

¥63 million¥19 million per year

Total
(18th FP to 21st FP)

20

Progress at 18.2% of total
properties of 110 residential properties• Expected amount of decrease of electricity use costs, etc.
rose to a total of approx. ¥19 million per year through LED
light fixture replacement work at common areas• Construction costs are all capital expenditures and eachperiod’s construction costs are expected to be recoveredin 3 to 4 years with the reduction of electricity use costs,
etc.
Note: “Expected amount of annual decrease” are figures calculated by the Asset Management
Company based on proposal materials by construction companies and there is no guaranteethat the recovery of construction costs will be implemented without fail.

Large-Scale Repair Work
 Large-scale repair work was implemented on a planned basis given the results of diagnosis on building deterioration in order tomaintain and increase the properties’ asset value and competitiveness
Property nameConstruction cost

Details of work

Construction Period

Esty Maison ASAKUSA KOMAGATA(11.8 years old)

¥65 million(of this, ¥63 million capital expenditure)

Repair and painting of exterior walls and hallway walls of common areas,waterproofing work for rooftop and balcony, etc.

Nov. 2015 toMar. 2016

Esty Maison SHIBAURA(19.7 years old)

¥53 million(of this, ¥52 million capital expenditure)

Repair and painting of exterior walls and hallway walls of common areas,waterproofing work for rooftop and balcony, etc.

Nov. 2015 toMar. 2016

Esty Maison ASAKUSA KOMAGATA

Esty Maison SHIBAURA<before><before><before><before><after><after><after><after>22

Occupancy Status and Tenant Trends at Retail Properties
100% occupancy for all properties was achieved as a result of working towards stable operation in the 21st FP.
Moreover, 2 tenants were re-contracted in and after the 21st FP
Occupancy Status of Retail Properties
Occupancy Status in the 21st FP ended March 2016
Retail properties name

End of20th FPEnd of21st FP

Status of Re-Contracting in the 21st FP
Periodaverage

HAMAMATSU Plaza

100%

100%

100%

RINKU HAGURAZAKI Plaza (Note 1)

100%

-

100%

b-town MINAMIAOYAMA

100%

100%

100%

KOJIMA × BIC CAMERA
Kamifukuoka store (Note 1)

100%

-

100%

Joy Square YUGAWARA (Note 1)

100%

-

100%

Bell Plaza Shopping Center (Note 1)

100%

-

100%

Retail properties total

100%

100%

100%

Status of Remaining Contract Periods with Tenants at
End of the 21st FP
Weighted average ofLess than 3 years

3 years to less than 5 years

5 years to less than 10 years

26.3%

46.3%

27.4%

remaining years (Note 2)

4.8 years

 At b-town MINAMIAOYAMA, concluded a re-contracting at the same level ofrent with a tenant (retailing) whose contract period expired in March 2016
Property nameLesseeb-town MINAMIAOYAMA
Undisclosed

Contract period

Mar. 2016 – Mar. 2018 (2 years)

Leased floor area

189.04m²

Status of Re-Contracting After the End of the 21st FP
 In April 2016, the period of contract with Daiwa Lease Co., Ltd. was extended
to approx. 18 years and 7 months, concluding re-contracting with the sameterms as before
Property nameLesseeHamamatsu Plaza (Hamapla & Frespo Building) (Note 3)

Daiwa Lease Co., Ltd.

Contract period

Apr. 2016 – Nov. 2034 (approx. 18 years and 7 months)

Leased floor area

8,621.12m² (equivalent of 49% interest)

Note 1: RINKU HAGURAZAKI Plaza, KOJIMA × BIC CAMERA Kamifukuoka store, Joy Square YUGAWARA and Bell Plaza Shopping Center were disposed as of November 30, 2015.
Note 2: The “weighted average of remaining years” is based on tenant lease agreements effective as of the end of the FP ended March 31, 2016 (end of 21st FP) and calculated using the weighted average of rent (including land rent) for each shop
during the lease period, and are rounded down to the nearest first decimal place.
Note 3: Regarding Hamapla & Frespo Building, the real estate in trust of the real estate trust beneficial interest that the Investment Corporation owns is only the land and does not include the building.

Current Status Concerning Tenants of Retail Properties and Future Policies
Retail properties nameCurrent status

Response policy going forward

HAMAMATSU Plaza● The successor tenant’s plan for opening the new store at the former Ito
Yokado building is steadily progressing with Sekisui House, the owner.
The Investment Corporation has also established a collaborative
system with existing tenants for the plan of the successor tenant

Prepare for the plan of the successor tenant to open its store andincrease the attractiveness of the entire facility in collaboration with
Sekisui Houseb-town MINAMIAOYAMA● Negotiating for re-contracting with a tenant whose contract is expiring inMay 2016

Aim for certain re-contracting with the tenant23

Prime Maison SHIBUYA

IV. Financial Activities in and after the 21st FP

プライムメゾン東桜
マスト博多
マスト博多

Major Initiatives in and after the 21st FP
Overview of Debt Finance Oct. 2015, Jan., Mar. and Apr. 2016
Conducted new borrowings of ¥17.8 billion in total to procure funds for property acquisitions

Status of credit rating(as of date of document)• Implement short-term and long-term borrowings and promote the maintenance of a stable ratio of long-termborrowings and diversification of repayment dates

Japan Credit Rating Agency, Ltd.
(JCR)

• Implement long-term loans with spreads that are in effect lower than the previous procurement
Borrowing period Previous procurement

8 years

45bp (Feb. 2015)

7 years

40bp (Feb. 2015)

Borrowing period

7 years
11 months
7 years
7 months

AA- (Stable)

Recent procurement

42.5bp (Apr. 2016)

Decrease of spread in effective
40bp (Jan. 2016)

Rating and Investment Information, Inc.
(R&I)

 Dec. 2015:Utilized part of proceeds from the disposition of 4 retail properties and made an early repayment
for a total of ¥8.2 billion

A+ (Stable)• Reduced interest burdens in the 21st FP by approx. ¥9 million through early repayment of a total of ¥8.2 billion
Procured funds with average borrowing cost rate and average remaining period of borrowing in mind(%)

(years)
6.0

Average borrowing cost rates during the FP (Notes 1 and 2) (left axis)
Average remaining period of borrowing (Note 3) (right axis)

2.00
1.61%

1.56%

4.9 years
1.47%

1.38%

4.2 years

4.5 years

4.3 years

4.1 years

4.2 years

1.25%
3.1 years

1.20%

1.00
2.0 years

2.1 years

4.0

3.2 years

2.3 years

1.09%

1.04%

1.02%

1.01%
2.0

0.00

FP ended
Sept. 30, 2011
(12th FP)FP endedMar. 31, 2012
(13th FP)FP ended
Sept. 30, 2012
(14th FP)FP endedMar. 31, 2013
(15th FP)FP ended
Sept. 30, 2013
(16th FP)FP endedMar. 31, 2014
(17th FP)FP ended
Sept. 30, 2014
(18th FP)FP endedMar. 31, 2015
(19th FP)FP ended
Sept. 30, 2015
(20th FP)FP endedMar. 31, 2016
(21st FP)

as of the date ofthis document

0.0

Note 1: Average borrowing cost rate during the FP = Period borrowing cost (annualized) / Balance of period average interest-bearing debt; Borrowing cost = Interest expenses (excluding settlement money (break funding cost)) + Borrowing related
expenses + Interest expenses on investment corporation bonds
Note 2: Rounded to the nearest second decimal place.
Note 3: The figures are the result of calculation based on the weighted average using the remaining period from each corresponding date to the repayment (redemption) dates of loans and investment corporation bonds, and their balances and rounded
down to the nearest first decimal place.

25Change in Major Financial Indicators Related to Interest-Bearing Debt (1)Maintaining financial soundness by maintaining the fixed-interest borrowing rate, ratio of long-term borrowings andstatus of diversification of repayment dates as well as promoting conservative LTV control
Ratios of Floating and Fixed Interest Rates

Ratios of Short-Term and Long-Term Borrowings(Notes 1 and 2)

Maintain stable ratio of long-term borrowings

Maintain stable ratio of borrowings with fixed interest
Floating

Short-termLong-term

Fixed
100%

100%
10.6%

12.1%

15.7%

89.4%

87.9%

LTV
Borrowing capacity up to 55% LTV
55%

4.6%

6.9%

6.5%

(11.9%)(11.2%)

95.4%

93.5%

93.1%

53.8%

52.3%

51.5%
50%

180億円
¥18
billion
130億円¥13
billion¥11.8 billion

40%¥5.4 billion

20%
35%

0%

End of 20th FP(Sept. 30, 2015)

End of 21st FP(Mar. 31, 2016)

As of dateof document60%

End of 20th FP(Sept. 30, 2015)

End of 21st FP(Mar. 31, 2016)¥23
billion
230億円¥15.1 billion
45%

80%

84.3%

40%

Control LTV conservativelyof this, long-term borrowings
scheduled to be repaid within 1 year

(6.3%)

80%

60%

Changes in LTV (Notes 1 and 3)(Notes 1 and 2)

As of dateof document

End of 20th FP(Sept. 30, 2015)

End of 21st FP(Mar. 31, 2016)

As of dateof document(Estimate)

80億円¥8 billion
30億円¥3 billion

Maturity Ladder (as of date of document)(million yen)
16,000

Diversification of repayment dates targeting about ¥10 billion per period
Short-term borrowings
Long-term borrowings
Investment corporation bonds

14,00012,00010,000Dec. 2015
Early
repayment

2,500
2,800

8,000

3,000

2,000

6,000
9,500

4,000
2,000

9,900

8,382

4,000

7,200

6,792

2,705

2,100

2,500

24th FPEndingSept. 30,2017

25th FPEndingMar. 31,2018

26th FPEndingSept. 30,
2018

9,830
8,100

5,500

6,500

5,400

4,400

4,100

3,000

0
21st FP
Ended
Mar. 31,2016

22nd FPEndingSept. 30,2016

23rd FPEndingMar. 31,2017

27th FPEndingMar. 31,2019

28th FPEndingSept. 30,2019

29th FPEndingMar. 31,2020

30th FPEndingSept. 30,2020

31st FPEndingMar. 31,2021

32nd FPEndingSept. 30,2021

33rd FPEndingMar. 31,2022

34th FPEndingSept. 30,2022

35th FPEndingMar. 31,2023

36th FPEndingSept. 30,2023

37th FPEndingMar. 31,2024

38th FPEndingSept. 30,2024

Note 1: The above ratios are rounded to the nearest first decimal place. Note2:Ratio against the total interest-bearing debt. Note3:LTV = Period-end total interest-bearing debt ÷ Period-end total assets. The same applies hereafter.

26

Change in Major Financial Indicators Related to Interest-Bearing Debt (2)Overview of Interest-Bearing Debt

Investment corporation bonds
Current portion of long-term loans(million yen)

End of 21st FP (Mar. 31, 2016)
Average Interest
Rate onProcurement(Note 2)

Balance

Short-term loans payable
Long-term loans payable(Note 3)
Investment corporation
bonds
Total interest-bearingdebt

As of date of document¥7,200 million

0.2%

Balance

120,000

Average Interest
Rate onProcurement(Note 2)100,000

0.2%

60,000¥7,200 million

80,000¥88,509 million

0.9%

40,000¥14,500 million

0.8%¥14,500 million

0.8%

20,000¥103,709 million

0.8%¥110,209 million

0.8%

12,300

4,650

6,350

0

Sept. 30, 2015
(End of 20th FP)

53.8% (estimate)

76,20969,70975,109

0.9%

52.3%

14,50014,50014,500¥82,009 million

LTV

Long-term loans payable
Short-term loans payable

12,3007,200Mar. 31, 2016(End of 21st FP)

7,200

As of date of document

Loans Payable Outstanding Balance by Financial Institution
As of date of document
Financial Institution

Outstanding Balance

Mizuho Bank, Ltd.

¥18,101 million

Share

1.4%

1.4%

18.9%

1.4%

1.4%

Mizuho Bank, Ltd.

1.4%

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation¥17,841 million

18.6%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥12,250 million

12.8%

1.7%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Mizuho Trust & Banking Co., Ltd.

¥7,530 million

7.9%

2.3%

Mizuho Trust & Banking Co., Ltd.

Sumitomo Mitsui Trust Bank, Limited¥6,450 million

6.7%

2.5%

Mitsubishi UFJ Trust and Banking Corporation¥6,292 million

6.6%

Development Bank of Japan Inc.

¥5,841 million

6.1%

The Norinchukin Bank

¥4,452 million

4.7%

Resona Bank, Limited.

¥4,250 million

4.4%

The Bank of Fukuoka, Ltd.

¥2,400 million

2.5%

Aozora Bank, Ltd.

¥2,200 million

2.3%

Shinkin Central Bank

¥1,600 million

1.7%

The Senshu Ikeda Bank, Ltd.

¥1,300 million

1.4%

The Shizuoka Bank, Ltd.

¥1,300 million

1.4%

The 77 Bank. Ltd.

¥1,300 million

1.4%

The Hiroshima Bank, Ltd.

¥1,300 million

1.4%

The 77 Bank. Ltd.

The Yamaguchi Bank, Ltd.

¥1,300 million

1.4%

The Hiroshima Bank, Ltd.

¥95,709 million

100.0%The Yamaguchi Bank, Ltd.

Total debt

Sumitomo Mitsui Trust Bank, Limited

18.9%

4.4%

Mitsubishi UFJ Trust and Banking Corporation
Development Bank of Japan Inc.

4.7%

The Norinchukin Bank
Resona Bank, Limited.

6.1%
18.6%

The Bank of Fukuoka, Ltd.
Aozora Bank, Ltd.

6.6%

Shinkin Central Bank

6.7%

12.8%
7.9%

The Senshu Ikeda Bank, Ltd.
The Shizuoka Bank, Ltd.

Note 1: Concerning figures in the graphs and tables above, money amounts of less than one million yen are rounded down and percentage figures are rounded to the nearest first decimal place.
Note 2: The average interest rate on procurement is the weighted average of applied interest rates as of March 31, 2016 or as of date of document based on the balances of the debts, and the figures are rounded to the nearest first decimal place.
Note 3: Includes current portion of long-term loans payable.

27Prime Maison HATSUDAI

V. CSR and Environmental Activities

プライムメゾン東桜
マスト博多
マスト博多

Examples of Initiatives in CSR and Environmental Activities
LED light fixture replacement work in common areas

Energy-saving conversion of air conditioners in exclusive areas

Newly implemented at 6 properties in the 21st FP (ended Mar. 2016)(Implemented at a total of 20 properties as of end of Mar. 2016)

Newly implemented at 91 units in the 21st FP (ended Mar. 2016)(Implemented at a total of 253 units as of end of Mar. 2016)
 Comparison of air conditioning units with “2 stars” energy efficiency and those with “4stars” energy efficiency

Electricity consumption (cumulative total) :Expected decrease of approx. 740,907kwh annually

Electricity consumption:
Expected annual reduction of approx. 13% in electricity consumption per unit

Greenhouse gas emissions(cumulative total) :Expected decrease of approx. 369t annuallyGreenhouse gas emissions:
Expected approx. 112kg annual reduction in greenhouse gas emissions per unit

Aiming the decrease in electricity
consumption at common areas and ofgreenhouse gas (CO2) emissions
Management that considers
the environment and society
3 properties newly certified in April 2016 following
the certification of 2 properties in January 2015
Number of certified properties now totals 5
Prime Maison YOKOHAMA NIHON-ODORICertification rank

Provision of high-quality
residences

Prime Maison GINZA EAST

Aiming the reduction in electricity
consumption and greenhouse gas(CO2) emissions at exclusive areas

Acquired the highest “Green Star” rating in the 2015 GRESB
environmental survey, the first ever for a residential J-REIT, and wasselected as “Sector Leader” (ranked first) in Asia’s Residential Sector

Certification rank

(3 stars)(4 stars)

Esty Maison OJIMA
Certification rank

The Global Real Estate Sustainability Benchmark (GRESB) is a benchmark
system for evaluating sustainability performance in the real estate sector
established primarily by major European pension fund groups for the purpose ofenhancing shareholder value by applying environmental, social and governance(ESG) considerations to real estate investment.

 Already certified in January 2015 (all 4 stars)
Prime Maison GOTENYAMA EAST (4 stars)
Prime Maison SHINAGAWA (4 stars)
Acquisition of DBJ Green Building Certification(2 stars)Continued participation in GRESB environmental survey
29

Memo

30

Esty Maison UEMACHIDAI

VI. Forecasts for the 22nd FP

プライムメゾン東桜
マスト博多
マスト博多

Forecasts for the 22nd FP
Forecast cash distribution
for the 22nd FP¥2,130 per unit

Increase of 0.2% from result for the 21st FP
Rent business income of properties additionally acquired in the 21st FP and newly acquired in the beginning of
the 22nd FP are expected to exceed the absence of gain on sales and rent business income of the 4 retailproperties and 1 residential property

Comparison with Forecasts
FP
ended March 31, 2016(183 days)(actual)◇Factors for change between the 22nd FP forecasts

Forecast for FP ending
September 30, 2016(183 days)

and the previous period

Change・ Operating income

Operating revenue¥6,543 million¥6,682 million¥139 million

2.1%

Operating income¥2,741 million¥2,720 million-¥21 million-0.8%

Ordinary income¥2,214 million¥2,172 million-¥41 million-1.9%

Net income¥2,210 million¥2,169 million-¥41 million-1.9%¥47 million--¥47 million-100%¥2,125¥2,130+¥5

0.2%

Provision for reserve for
reduction entry
Cash distributions per unit

Operating revenue
Increase in rent revenue: +¥353 million
Decrease in other rent business revenue:-¥3 million
Decrease in gain on sales of real estate properties : -¥210 million

Operating expense
Increase in expenses related to rent business
Increase in other business expenses: +¥151 million:+¥9 million

・ Ordinary income
Decrease in non-operating revenue
Increase in non-operating expenses::-¥0 million+¥20 million[Assumptions of forecast for the FP ending Sept. 30, 2016]◆ Assets under management: 112 properties owned as of the date of this document◆ Average occupancy ratio for the FP: Residence 96.2%, Other real estate in trust (retail properties) 100%, Entire Portfolio 96.4%◆ Administration service fees: Approx. ¥636 million◆ Fixed asset taxes, etc. that will be recorded as expenses related to rent business: Approx. ¥376 million◆ Depreciation: Approx. ¥1,581 million◆ Interest expenses, borrowing related expenses, etc.: Approx. ¥526 million◆ Amortization of investment unit issuance costs and investment corporation bond issuance costs: Approx. ¥22 million◆ Total number of investment units issued: 1,018,110 units◇ [Reference] Impact of expensing of fixed asset tax, etc. of residential properties acquired in January 2016 and after*The impact that fixed asset tax, etc. of residential properties acquired between January 2016 to the date of this document has on cash
distributions per unit for the 24th FP (ending September 2017) in which it will be recorded as expenses related to rent business is estimated.

Impact on cash distributions
per unit (estimate)-¥33

Note 1: Money amounts less than the indicated denomination are rounded down.
Note 2: The above forecast figures are calculated based upon certain assumptions as of May 16, 2016. Actual operating revenue, operating income, ordinary income, net income and cash distributions per unit may differ as a result of subsequentacquisitions or disposition of real estate, trends in real estate markets, etc., changes in the operating environment or other conditions affecting the Investment Corporation, etc.. The above forecasts are not intended to be guarantees of businessresults or cash distributions.

32Analysis of Change in Forecast Cash Distributions for the 22nd FP
Impact on
distributable profit

Factors of change

Impact on
cash distributions(1) Absence of gain on sales from disposition of 4 retail properties and Esty Maison IMAIKE in the 21st FP:(excluding internal reserve of ¥47 million)-¥163 million-¥160(2) Decrease in rent business income from disposition of 4 retail properties and Esty Maison IMAIKE in the 21st FP-¥31 million-¥31(3) Increase in rent business income from full-period operation of properties additionally acquired in the 21st FP(Prime Maison YOKOHAMA NIHON-ODORI and KOBE Women’s Student Housing)+¥145 million+¥142(4) Increase in rent business income from full-period operation of properties newly acquired at the beginning of the 22nd FP(Prime Maison SHIBUYA, Prime Maison HATSUDAI, Esty Maison UEMACHIDAI and Esty Maison KOBE-SANNOMIYA)+¥128 million+¥126(5) Decrease in rent business income from other existing owned properties (106 properties)(Of this, increase of fixed asset tax, etc. from properties acquired in January 2015 and after: ¥25 million)-¥44 million-¥44(6) Increase in general management fees, non-operating expenses, etc. and other factors-¥29 million-¥28

Increase in rent businessincome from full-period
operation of properties
newly acquired at the
beginning of the 22nd FP

(yen)

2,300
2,200

Increase in rent
business income fromfull-period operation ofproperties additionallyacquired in the 21st FP

(1)

(2)

2,000
1,900

Actual cash
distribution forthe 21st FP

1,800

1,600

(5)

(4)

Decrease in rent
business income fromother existing owned
properties

+¥142

2,100

1,700

+¥126

¥2,125 per unit
Initial forecast
cash distribution
forthe 21st FP

Absence of gain on
sales from
disposition of 4 retailproperties and Esty
Maison IMAIKE
in the 21st FP-¥160

Decrease in rent
business income
from disposition of 4
retail properties andEsty Maison IMAIKE
in the 21st FP

-¥31

(6)

-¥44

Increase in generalmanagement fees,
non-operating
expenses, etc. andother factors

-¥28
(3)
Forecast cash
distribution forthe 22nd FP¥2,130 per unit

¥2,120 per unit
1,500

33

Memo

34

Esty Maison KOBE-SANNOMIYA

VII. Growth Strategy Going Forward, Etc.

プライムメゾン東桜
マスト博多
マスト博多

General Overview of Phase I and II of Growth Strategy
Growth strategy of 2 phases was formulated and announced in May 2010 (10th FP)
Achieved the strategic target of Phase I at the end of the 12th FP and of Phase II at the beginning of the 22nd FP under strong
collaboration with the Sekisui House Group
Phase II (period: 13th FP to 22nd FP)

Management policy

Prioritize the promotion of stabilization of
the financial base

Improvement of profitability through full-fledged increase of the asset size

Strategic target

Early recovery of cash distributions tothe ¥10,000 level

Aim for asset size of ¥200 billion while paying attention to the cash distribution level

Cash distributions (Note)

Phase I (period: 10th FP to 12th FP)

21st FP

Achieved ¥10,000
cash distribution level

Maintain stable cash distribution level
12th FP¥2,009¥2,125¥2,130(¥10,625)(¥10,650)

Achieved asset size of¥200 billion(¥10,045)

10th FP

22nd FP(forecast)¥1,632¥200.7 billion(112 properties)(¥8,160)

Asset size

Improved stability of the financial base andrecovered the cash distribution level

Establishedcollaborative
system with
Sekisui House,the main sponsor,
in March 2010

Steadily acquired residential properties primarily through theproperty pipeline with the Sekisui House GroupAcquisition

Disposition

Acquisition++¥119.8 billion-¥25.3 billion+¥6.3 billion(5 properties)(63 properties)–9 properties
and part of
1 property

Total change=+¥94.4 billion(+54 properties)

Examples of properties acquired from the Sekisui House Group¥106.2 billion¥99.9 billion(58 properties)(53 properties)

End of 12th FP(Sept. 30, 2011)

Prime Maison
EBISU(Shinagawa-ku, Tokyo)(Shibuya-ku, Tokyo)

Acquired Oct. 1, 2013

Acquired Jan. 15, 2015~~

End of 10th FP(Sept. 30, 2010)

Prime Maison
GOTENYAMA EAST

22nd FP(Apr. 1, 2016)

Note: The Investment Corporation executed a five-for-one split of its investment units on April 1, 2014. Considering the impact of this split, cash distributions for the 10th FP and the 12th FP are a fifth of the actual figure shown in parenthesis and, for the cash
distributions for the 21st FP and 22nd FP(forecast) , the amount in which the actual figure or forecast figure is multiplied by five is shown in parenthesis.

36

Implementation Status of Phase II of Growth Strategy

External growthstrategy

The following measures initially set out have been steadily implemented in the approx. 5 years sincethe 13th FP (ended March 2012) when the transition to Phase II was made

 Promoting external growthcentering on residential
properties Acquiring residential properties primarily throughthe property pipeline with the Sekisui HouseGroup Considering utilization of
warehousing function of the
new sponsor

Total acquisition priceInternal growthstrategy
Financialstrategy Reinforcing the financial basethrough timely implementationof public offerings
 Considering diversification offunding methods

Disposed part of Hamamatsu Plaza twice, the largest
property in the portfolio at that time

119.8 billion, 63 properties¥58.3 billion, 33 properties Adding value to retailproperties

Mar. 2012 and Sept. 2013¥

Of this, from Sekisui House Group Employed Sekiwa Real EstateGroup companies as property
management (PM) companies
for residential properties

In addition to the left, the following initiatives were
implemented ahead of schedule for transitioning to a
REIT specializing in residential properties

 Consolidating PM companies in order to utilize
the Sekiwa Real Estate Group’s nationwide
network and know-how

Number of properties for which PM has been
entrusted
PM entrustment ratio

78 properties

70.9 %

June 2014
The investment target was changed to be only
residential properties, excluding retail properties
which had been a complementary investment target
Existing retail properties will be managed stably for thetime being and their disposition will be consideredlooking for the right opportunity of disposition

June 2014 and later
6 existing retail properties were disposed as of thedate of this document(based on residential properties)

 NAV per unit increased through theimplementation of 4 public offerings, etc.

NAV per unit
to 12th FP end
106 thousand Compared+54.7%¥

Maximally utilized Sekisui House Group’s comprehensive strengths on rental housing and achieved
the Phase II strategic target of an asset size of ¥200 billion with consideration to the cash
distribution level
Note: “Total acquisition price” and “Number of properties for which PM has been entrusted” above are figures as of the date of this document. “NAV per unit” is as ofthe end of the 21st FP (end of Mar. 2016). Moreover, figures for investment ratio by asset class on the right are calculated based on the total acquisition priceof the asset classes as of each period.

[Reference]
Changes in Investment ratio by asset class
2.7%
27.4%

Rate ofresidential
properties

Rate ofresidential
properties

97.3%

72.6%
As of end of 12th FP

As of date of this document37

Growth Strategy in Phase III, the Next Growth Stage
Growth Stragegy in Phase III announced May 2016 — Expecting 5 to 7 years of implementation period —External
growthstrategy

Sustained enhancement of the portfolio and financial basewith a focus on unitholder’s interests

 Ongoing external growth through the utilization of the property pipeline with the Sekisui HouseGroup Promotion of qualitative improvement of profitability and the portfolio through property
replacements
 Investment in a diversity of residential assets (student housing, company housing and serviced
housing for the elderly)Internal
growthstrategy

 Increase of profitability of assets under management through the strengthening of collaboration
with Sekiwa Real Estate companies
 Maintenance and improvement of asset value through appropriate planned repairs and valueadding work
 Improvement of long-term added value through environmentally conscious management for the
purpose of reducing CO2 and such

Financialstrategy Further expansion of market capitalization, liquidity and the investor base through theimplementation of flexible public offerings
 Maintenance of a firm financial base through conservative LTV control
 Continuation of reduction of funding costs, basically pursuing long-term, fixed-interest,
diversified borrowings

Strategic
targetPromote the increase of unitholder’s value and aim tobecome the leading residential REITManagement
policyAim for an asset size of ¥300 billion while maintaining/increasing the cash distribution level38

Future Distribution Policy
22nd FP ending Sept. 30, 2016
• Cash distributions per unit are forecast at ¥2,130, thesame level as recent FP• Focus on securing a stable cash distribution level23rd FP ending Mar. 31, 2017 and Onward• Aim to further increase the cash distribution level in the 23rd FP and onward through active
deployment of the Phase III growth strategy

Changes in Cash Distribution per Unit
¥1,958¥2,131¥2,009¥2,130¥2,185¥2,122¥2,125

Target cash distributions for
the Phase III growth strategy(Forecast)¥2,200 per unit
Accumulated stable cash distribution results with thedevelopment of phase I and II of the growth strategy

11th FP(Mar. 2011)

12th FP(Sept. 2011)

～
～

～
～

Note : As the Investment Corporation executed a five-for-one split ofinvestment units on April 1, 2014, “cash distributions per unit” for the
FP ended Mar. 2014 or before are indicated as the amounts arrived atby dividing the actual amount of each period by five, taking into
co n si de ra tio n t he i mp a ct of t he spli t of i nve st me n t u nits.

18th FP(Sept. 2014)

19th FP(Mar. 2015)

20th FP(Sept. 2015)

21st FP(Mar. 2016)

22nd FP(Sept. 2016)

Immediate Specific Measures for Management of Cash Distributions
Borrowing Capacity

Free Cash Flow (Note)

Reserves for Reduction Entry

In case the Investment Corporation madeborrowings up to LTV of 55%, the ceiling target

Internal reserves of cash flow throughdepreciation of properties owned

Internal reserves of gain on sales of properties
which utilized special measures concerning
taxation for advance acquisition of land and such

¥5.4 billion (estimate)¥3.1 billion per annum (estimate)¥174 million in total

Utilize above measures for property acquisitions to maintain andfurther increase the cash distribution level

Utilize for measures that will contribute to securing a stable cash
distribution level in the future

Note : “Free Cash Flow” is calculated based on estimated annual depreciation of 112 properties scheduled to be under management in the 22nd FP ending September 30, 2016.

39

Residential Properties Planned, Developed or Owned by Sekisui House GroupAsset
managementcompany

Supply information

SponsorExchange of opinions

Sekisui House holds
property planningmeetings periodicallySekisui House
Development Department

0

Sekisui House
SI Asset Management
Real Estate Investment Department

Demand information

13 out of 14 properties are in Greater Tokyo / Major Urban Areas (all in Tokyo’s 23 wards)

Asset Management
Company participates
as an observer

Completed properties

Under construction (obtained verification of building construction)

Properties in theplanning stage

2 properties 265 units in total

7 properties 1,065 units in total

5 properties

Sekisui House plansand develops“Prime Maison” basedon the property planningmeetings

4 properties
inTokyo’s
23 wards

1 property
Prime Maison
SHIROKANE TAKANAWA

Prime Maison
ICHIGAYAYAMABUSHICHO(Minato-ku, Tokyo)(Tentative name)(Tentative name)(Tentative name)(Shinjuku-ku, Tokyo)

Prime Maison
SHIROKANEDAI TOWER

Prime Maison
OTSUKA

Prime Maison
ASAKUSABASHI

147 units

118 units(Shinagawa-ku, Tokyo)(Toshima-ku, Tokyo)(Taito-ku, Tokyo)<Completed in June 2015><Completed in Oct. 2015>

220 units

144 units

64 unitsinOsaka-shi

An example of “MAST” properties
planned, developed or owned
by Sekiwa Real Estate companies
in recognition of their values

An example of“Prime Maison”
properties owned by
Sekisui House other than
the above
Prime Maison

GOTENYAMA WEST

Granmast KAYABA(Shinagawa-ku, Tokyo)(Nagoya-shi, Aichi)

26 units

27 units<Completed in Jan. 2011><Completed in Feb. 2012>

Note: With regard to properties on this page, the Investment Corporation has no specific plans to acquire any of the properties above as of the date of this document. Also, images of properties that are “under construction” are renderings based on thedesign documents and may differ from the actual buildings.

40

Change in Asset Management Fee System
A proposal for partial amendment of the Articles of Incorporation including changing the asset management fee system to one with greaterlinkage with unitholder’s interests will be submitted for the 7th general meeting of unitholders
After approval, the new asset management fee system will be applied from the 23rd FP (October 1, 2016 to March 31, 2017)
Current

Proposed change
Lowering of part linked to asset size

Linkage withreal estateappraisal value,
etc.

Asset management fee (1)Asset management fee (1)Linkage to NOIAsset management fee (2)Change to asset management fee systememphasizing operating performance of assets
under management is scheduled
II
Linkage with unitholder’s interest

Linkage withincome before
income taxes

Asset management fee (2)Linkage toamount of
total assets

Raising of part linked to performance

Current asset management fee system

Proposed asset management fee system

Classification

FormulaMaximum fee rate

FormulaFee rate

Asset management fee (1)Real estate appraisal value, etc. × Fee rate (annual rate)

0.4%

Amount of total assets × Fee rate(annual rate)

Asset management fee (2)Income before income taxes × Fee rate

3.0%

NOI × Fee rate

5.0%

0.8%
(0.4%*)

Acquisition or disposition price × Fee rate

0.8%
(0.4%*)

Appraisal value of real estate-related assets inherited through merger
× Fee rate

0.8%

Acquisition/disposition fees Purchase price × Fee rate
Merger fee––

Section up to ¥200 billion
Section above ¥200 billion

0.22%*The figure in parenthesis (0.4%) will be applied in cases of transactions with interested parties, etc.
◇ Applicable rate of fee rates*The Investment Corporation and the Asset Management Company plan to determine the applicable rate for the asset management fees after consultation and will announce the rate
once it is determined.
Note: “Amount of total assets” above refers to amount of the total assets as shown in the balance sheet of the preceding FP of each operating period. Moreover, NOI refers to the amount in which the total expenses related to rent business (excluding depreciati on
and loss on disposal of fixed asset) is subtracted from the total rent revenue-real estate (including dividends for equity interest in silent partnership on real estate and real estate-backed securities as well as similar revenue) calculated for each operating period.

41

Partial Change to Management Guidelines
Management Guidelines to be partially changed with the partial amendments of the Articles of Incorporation scheduled to be submitted tothe 7th general meeting of unitholders scheduled to be held on June 10, 2016

Content of Major Changes to the Management Guidelines•

Add renewable energy generation facilities to specified assets alongside partial amendments of the Articles of Incorporation as changes to the scope of specified
assets have been made with legal revisions•

Maintain allocation ratio of approximately 70% for “Greater Tokyo/Major Urban Areas,” the focused investment area and core area for the portfolio•

Changed allocation ratio of “Greater Tokyo/Other Urban Areas” and “Major Cities Nationwide” together to approximately 30% for greater flexibility in investment inareas other than “Greater Tokyo/Major Urban Areas”

Investment area category

Specific area

Greater Tokyo(1) Tokyo
Greater Tokyo / Major Urban Areas： 23 wards,
Musashino-shi, Mitaka-shi,
and Koganei-shi(Focused investment area)(2) Kanagawa

Greater Tokyo /Other Urban Areas：

Allocation ratio (Note 3)[Reference]
Allocation ratio before change

Approx. 70%

Approx. 70%

Yokohama-shi and
Kawasaki-shi(1) Tokyo areas (except islands) and Kanagawa
other than the above

Together with Greater Tokyo /Major Urban Areas
Approx. 80%

Major Cities
Nationwide(2) Chiba and Saitama

Major Urban Areas(1) Sapporo-shi, Sendai-shi, Nagoya-shi, Kyoto-shi,
Osaka-shi, Kobe-shi, Hiroshima-shi andFukuoka-shi(2) Areas within commuting distance from (1) above(Note 1)Other Major Cities Nationwide

Approx. 30%

10% or less for Other Major
Cities Nationwide

Approx. 20%
Up to roughly 10% for Other
Major Cities Nationwide

Government designated cities, etc. other than theabove (Note 2)

Note 1: “Areas within commuting distance” represent the peripheral areas from which it generally requires around 30 minutes to commute to the central parts of Sapporo-shi, Sendai-shi, Nagoya-shi, Kyoto-shi, Osaka-shi, Kobe-shi, Hiroshima-shi andFukuoka-shi.
Note 2: “Government designated cities, etc. other than the above” represent cities in areas other than Greater Tokyo and that fall under the category of either government designated cities, core cities, special ordinance cities at the entry into force or
prefectural capitals in areas other than Major Urban Areas.
Note 3: “Approx.” in the allocation ratio means ± 10%.
Note 4: Retail properties owned as of the date of this document have been excluded from the calculation of the above allocation ratio.

42[Reference] 7th General Meeting of Unitholders
Date, time and place Scheduled date: June 10, 2016 (Friday)

From 10 a.m.

 Location: 27F, Asahi Seimei Otemachi Building (Chiyoda-ku, Tokyo)

Purpose of general meeting of unitholders
 Matters to be resolved
Agenda 1: Partial amendments of the Articles of Incorporation
 Change of the asset management fee
system for the Asset Management
Company

The provisions concerning asset management fees will be changed and newly established in order totransition to an asset management fee system that emphasizes the linkage with rent businessperformance and such of real estate-related assets the Investment Corporation invests in as well as clarify
the standards for the payment of asset management fees when specified assets are acquired or disposed.

Agenda 2: Appointment of 1 Executive Director
 Appointment of Executive Director

The re-appointment of Osamu Minami, currently Executive Director, will be proposed as his term of officewill expire.

Agenda 3: Appointment of 1 Substitute Executive Director
 Appointment of Substitute Executive
Director

The re-appointment of Nobuyoshi Sato, currently Substitute Executive Director, will be proposed as his
term of office will expire.

Agenda 4: Appointment of 2 Supervisory Directors
 Appointment of 2 Supervisory Directors

The re-appointment of Kaoru Takamatsu and Mikio Koyano, currently Supervisory Directors, will be
proposed as their terms of office will expire.

43

Prime Maison EBISU

Ⅷ. Appendix

プライムメゾン東桜
マスト博多
マスト博多

Balance Sheet (1)20th Fiscal Period(As of September 30, 2015)
Million yen

21st Fiscal Period(As of March 31, 2016)

Percent of total

Million yen

ChangePercent of total

Million yen

Period on period (%)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Trademark right
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets

Total assets

3,141
4,969
131
162
0
2
-1
8,406

94,630-12,698
81,932
760
-181
579
1,769
-443
1,325
171
-62
109
101,906
185,852
150
0
0
150
242
370
130
743
186,747
74
52
127
195,280

4.3

3,428
5,016
153
129
0
10
-4
8,733

95.1

101,392-13,697
87,694
878
-193
684
1,926
-506
1,420
207
-71
136
98,617
188,553

0.1

148
0
0
148

0.4
95.6

242
367
138
748
189,450

0.1
100.0

67
38
105
198,290

4.4

287
46
21
-33
0
8
-3
327

3.9

95.1

6,761
-999
5,762
117
-11
105
157
-62
94
35
-8
26
-3,289
2,700

1.5

0.1

-2
-0
-0
-2

-1.5

0.3
95.5

-3
8
5
2,703

0.7
1.4

0.1
100.0

-7
-14
-22
3,009

-17.3
1.5

45

Balance Sheet (2)20th Fiscal Period(As of September 30, 2015)
Million yen

21st Fiscal Period(As of March 31, 2016)

Percent of total

Million yen

ChangePercent of total

Million yen

Period on period (%)

Liabilities
Current liabilities
Operating accounts payable

256

336

80

Short-term loans payable

4,650

7,200

2,550

Current portion of long-term loans payable

6,350

12,3005,950

Accounts payable – other

562

638

75

Accrued expenses

55

54

-1

Income taxes payable

1

3

2

Accrued consumption taxes

38

17

-20

Advances received

290

237

-52

5

12

Other
Total current liabilities

12,211

6.3

20,801

6
10.5

8,590

70.3

Non-current liabilities
Investment corporation bond

14,50014,500-Long-term loans payable

75,10969,709-5,400Tenant leasehold and security deposits in trust

2,247

Total non-current liabilities

91,85647.0

86,22543.5-5,631-6.1

104,067

53.3

107,026

54.0

2,959

2.8

88,92545.5

88,925

44.8

-

0.0

Total liabilities

2,016

-231

Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Voluntary retained earnings
reserve for reduction entry

77

127

49

total voluntary retained earnings

77

127

49

Unappropriated retained earnings

2,209

2,210

Total surplus

2,287

1.2

2,338

1.2

50

2.2

Total unitholders’ equity

91,213

46.7

91,263

46.0

50

0.1

91,213

46.7

91,263

46.0

50

0.1

195,280

100.0

198,290

100.0

3,009

1.5

Total net assets

Total liabilities and net assets

046

Statement of Income and Retained Earnings
20th Fiscal Period
from April 1, 2015 to September 30, 2015
Million yen

Percent of total

21st Fiscal Period
from October 1, 2015 to March 31, 2016
Million yen

Percent of total

ChangeMillion yen

Period on period (%)

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

6,330

6,332

1

81

210

129

6,411

100.0

6,543

100.0

131

2.0

Operating expenses

Expenses related to rent business

2,975

3,065

90

Asset management fee

458

471

12

Asset custody fee

15

15

-0

Administrative service fees

36

35

-0

Directors’ compensations

3

3

-

Provision of allowance for doubtful accounts

1

3

2

Other operating expenses

176

Total operating expenses

3,667

57.2

3,801

58.1

133

3.6

2,743

42.8

2,741

41.9

-1

-0.1

Operating income

205

29

Non-operating income
Interest income

00Reversal of distributions payable

0

0

0

Interest on tax refund

0

-

-0

Compensation received

2

-

-2

Other

0

-

Total non-operating income

3

0.1

1

0

-0
0.0

-2

-68.6

Non-operating expenses
Interest expenses

389

382

-6

Interest expenses on investment corporation bonds

56

56

-0

Amortization of investment corporation bond issuance costs

7

7

0

Borrowing related expenses

67

67

0

Amortization of investment unit issuance costs

14

14

-0

Other
Total non-operating expenses

0

0

-0

535

8.4

528

8.1

-7

-1.3

Ordinary Income

2,211

34.5

2,214

33.8

2

0.1

Income before income taxes

2,211

34.5

2,214

33.8

2

0.1

2

140.8

Income taxes – current

1

Income taxes – deferred

0-0-338.3

Total income taxes

1

0.0

3

0.1

2

119.4

2,209

34.5

2,210

33.8

0

0..0

-0

-60.8

0

0.0

Net income
Retained earnings brought forward

0

Unappropriated retained earnings

2,209

3
-0

0
34.5

2,210

33.8

47

Statements of Cash Flows / Cash Distributions
Statement of Cash Flows
20th Fiscal Period
from April 1, 2015 to
September 30, 2015

21st Fiscal Period
from October 1, 2015
to March 31, 2016

Million yen

Million yen

Cash flows from operating activities

20th Fiscal Period
from April 1, 2015 to
September 30, 2015

21st Fiscal Period
from October 1, 2015
to March 31, 2016

Million yen

Million yen

Cash flows from investing activities

Income before income taxes

2,211

2,214

Depreciation
Amortization of investment corporation bond issuancecosts
Amortization of investment unit issuance costs

1,431

1,468

7

Increase (decrease) in allowance for doubtful accounts-5,888-12,290

7

Proceeds from tenant leasehold and security
deposits in trust

175

225

14

14

Repayments of tenant leasehold and security
deposits in trust

-313

-456

-0

3

Interest income-0-0Decrease (increase) in investments and otherassets, net

-12

-8

Interest expenses

446

439

-6,039-12,530

Decrease (increase) in operating accounts receivable

45

-21

Decrease (increase) in prepaid expenses

-27

27

Decrease (increase) in consumption taxes receivable

39-

Increase (decrease) in operating accounts payable

-96

22

Increase (decrease) in accounts payable – other49

17

Purchase of property, plant and equipment in trust

Net cash used in investing activities
Cash flows from financing activities
Proceeds from short-term loans payable

1,800

7,200

Repayments of short-term loans payable-1,000-4,650

Proceeds from long-term loans payable

2,800

4,100

-2,100-3,550-2,223-2,160-723

939

Increase (decrease) in consumption taxes payable

38

-20

Repayments of long-term loans payable

Increase (decrease) in advances received
Decrease due to sale of property, plant and equipmentin trust
Decrease (increase) in long-term prepaid expenses

3-52

Dividends paid

3,050

8,240

51

8

-9

-2

7,255

12,365

0

0

-449

-440

Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid

-2

-1

6,804

11,92420th Fiscal Period
from April 1, 2015 to
September 30, 2015

21st Fiscal Period
from October 1, 2015
to March 31, 2016

Net cash provided by operating activities

Net cash provided by financing activities

Net increase (decrease) in cash and cash equivalents

41

333

Cash and cash equivalents at the beginning of period

8,069

8,111

Cash and cash equivalents at the end of period

8,111

8,444

Statement of Cash Distributions

Yen

Yen

I. Unappropriated retained earnings

2,209,951,548

2,210,581,192

II. Cash distributions(Cash distributions per unit)

2,160,429,420(2,122)

2,163,483,750(2,125)49,435,695

47,097,442

86,4330III. Voluntary retained earnings
Provision for reserve for reduction entry
IV. Retained earnings carried forward

48

Summary of Selected Financial Data
20th Fiscal Period
from April 1, 2015 to
September 30, 2015

21st Fiscal Period
from October 1, 2015 toMarch 31, 2016

183 days

183 days

Total assets

195,280 million yen

198,290 million yen

Net assets

91,213 million yen

91,263 million yen

Unitholders’ capital

88,925 million yen

88,925 million yen

1,018,110 units

1,018,110 units

89,590 yen

89,639 yen

2,160 million yen

2,163 million yen

Business days

Investment units issued
Net assets per unit
Total cash distributions
Cash distributions per unit

2,122 yen

2,125 yen

Ordinary income to total assets(annualized) (Note 1)

2.3%

2.2%

Return on unitholders’ equity(annualized) (Note 2)

4.8%

4.8%

Unitholders’ equity ratio (Note 3)

46.7%

46.0%

110

108

400,210.45m2

368,622.60m2

96.7%

97.2%

1,431 million yen

1,468 million yen

Total number of properties
Total leasable floor area
Period-end occupancy ratio
Depreciation expense (Expenses
related to rent business)
Capital expenditures

Note 1: Ordinary income to total assets = Ordinary income (annualized) / Average total assets
Average total assets = (Period-beginning total assets + Period-end total assets) / 2

97 million yen

293 million yen

Leasing Net Operating Income(NOI) (Note 4)

4,786 million yen

4,735 million yen

Note 3: Unitholders’ equity ratio = Period-end net assets / Period-end total assets

Funds from Operation (FFO) (Note 5)

3,560 million yen

3,468 million yen

Note 4: Leasing NOI = Leasing income for the fiscal period (= Rent revenue-real estate - Expenses related to rent
business) + Depreciation expense (Expenses related to rent business)

3,496 yen

3,406 yen

100,609 million yen

103,709 million yen

FFO per unit

Note 2: Return on unitholders’ equity = Net income (annualized) / Average net assets
Average net assets = (Period-beginning net assets + Period-end net assets) / 2

Note 5: FFO = Net income - Gain on sales of real estate properties + Loss on sales of real estate properties +Depreciation
Note 6: LTV = Period-end total interest-bearing debt / Period-end total assets

Total interest-bearing debt

Interest-bearing debt = Borrowings + Investment corporation bonds

Loan to Value (LTV) (Note 6)

51.5%

52.3%

Note 7: Interest-bearing debt ratio = Period-end interest-bearing debt / (Period-end interest-bearing debt +Unitholders’ capital)

Interest-bearing debt ratio (Note 7)

53.1%

53.8%

Note 8: DSCR = (Net income + Repayment of interest-bearing debt + Interest expenses + Depreciation) /(Repayment of interest-bearing debt + Interest expenses)

9.2 times

9.4 times

Debt Service Coverage Ratio(DSCR) (Note 8)* Ratios are rounded to the nearest first decimal place.

49

History of the Investment Corporation since Listing
Total
AcquisitionPrice(million yen)Management after change of sponsor

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

210,000
200,000
190,000

99
properties
171,099

180,000
170,000
160,000

July 28, 2005
Listed on the Tokyo
Stock Exchange

150,000

77
properties
128,794

140,000
130,000
120,000

52
properties
99,048110,000
100,000

53
properties
99,91953
properties
99,92053
properties
99,92053
properties
99,92057
properties
103,97458
properties
106,234

60
properties
101,00689
properties
141,472

21
properties
47,516
Apr. 2, 2010
Third-party
allotment
10,400 units

40,00020,000112
properties
200,700

Trade namechange66
properties
110,214

Trade namechange70,00030,000108
properties
193,890

Apr. 1, 2014
Split ofInvestment Units

80,00050,000110
properties
191,02095
properties
151,744

90,00060,000107
properties
188,771

Aug. 29, 2005
Third-party
allotment
2,000 units

Apr. 22, 2013
Publicoffering
21,430 units

Apr. 21, 2014
Public offering
111,600 units

Oct. 22, 2014
Public offering
97,970 units

Oct. 26, 2012
Third-party
allotment
1,540 units

May 23, 2013
Third-party
allotment
1,105 units

May 22, 2014
Third-party
allotment
5,615 units

Nov. 18, 2014
Third-party
allotment
4,900 units

Feb. 28, 2013
Investment
corporation
bonds¥6,000 million

10,000～～0Oct. 1, 2012
Public offering
20,460 units-10,000

Disposition of part of
HAMAMATSU Plaza, etc.
End of 6th FP
End of 7th FP
End of 1st FP(Mar. 31, 2006) (Sept. 30, 2008) (Mar. 31, 2009)

End of 8th FP
End of 9th FP(Sept. 30, 2009) (Mar. 31, 2010)

End of 10th FP(Sept. 30, 2010)

End of 11th FP(Mar. 31, 2011)

End of 12th FP(Sept. 30, 2011)

End of 13th FP(Mar. 31, 2012)

Feb. 28, 2014
Investment
corporationbonds¥5,500 million

Aug. 29, 2014
Investment
corporationbonds¥3,000 million

Disposition of
1 property
Disposition of
Hamamatsu Plaza East andthe former Ito-Yokado Building

End of 14th FP End of 15th FP End of 16th FP(Sept. 30, 2012) (Mar. 31, 2013) (Sept. 30, 2013)

Disposition of
1 property

Disposition of
1 property and Disposition ofpart of RINKU
5 properties
HAGURAZAKI Plaza

End of 17th FP End of 18th FP(Mar. 31, 2014) (Sept. 30, 2014)

End of 19th FP End of 20th FP(Mar. 31, 2015) (Sept. 30, 2015)

End of 21st FP(Mar. 31, 2016)

As of date of
document

Unitholders’ capital¥28,491
million¥48,704
million¥50,523
million¥57,755
million¥68,294
million¥79,059
million¥88,925
millionNumber ofinvestment units

56,000units

104,670
units

115,070
units

137,070
units

159,605
units

915,240
units

1,018,110
units

Total interest-bearing ¥23,165
debt
million(Note 1)

¥52,181
million¥51,639
million¥51,449
million¥51,208
million¥49,229
million¥51,874
million¥54,032
million¥58,073
million¥59,503
million¥71,434
million¥75,975
million¥83,768
million¥92,459
million¥99,109
million¥100,609
million¥103,709
million¥110,209
millionLTV(Note 2)

41.7%

49.3%

49.3%

49.0%

48.9%

47.1%

48.3%

49.3%

51.5%

52.1%

53.4%

51.0%

53.4%

52.3%

51.1%

51.5%

52.3%

-

Cash distribution
per unit(Note 3)

¥17,277（¥12,730）¥11,147¥5,485¥10,262¥10,052¥8,160¥9,793¥10,045¥10,117¥10,351¥10,459¥10,537¥11,062¥2,131¥2,185¥2,122¥2,125-Note 1:

Total interest-bearing debt = Borrowings + Investment corporation bonds + Interest-bearing tenant leasehold and security deposits

Note 2:

LTV = Period-end total interest-bearing debt / Period-end total assets

Note 3:The operating period for the first fiscal period was the 346 days between April 20, 2005 and March 31, 2006. The substantial management period was the 247 days between July 28, 2005 and March 31, 2006. In order to compare with the 6th fiscal period and the successive fiscal periods, the figure
calculated with the number of management days as 182 is indicated in parentheses. Furthermore, a split of investment units was executed on April 1, 2014.

50

Portfolio Map (1)As of date of document

Residence (property number)
Retail Properties (property number)

Osaka-shi
Greater Tokyo / Major Urban Areas
Adachi-ku

Itabashi-ku
Kita-ku

Katsushika-ku

Nerima-ku
Arakawa-ku
Toshima-ku

Fukuoka-shi

Musashino-shi
Koganei-shi

Mitaka-shi

Nakano-ku

Suginami-ku

Taito-ku

Bunkyo-ku
Shinjuku-ku

Sumida-ku

Edogawa-ku

Chiyoda-ku
Shibuya-ku

Setagaya-ku

Chuo-ku

Koto-ku

Minato-ku

Meguro-ku

Kawasaki-shi

Shinagawa-ku

Ota-kuYokohama-shi

Greater Tokyo / Other Urban Areas
Nagoya-shi
Tokyo

Kanagawa

Portfolio Earthquake PML

2.43%（Entire portfolio）

Note: “Portfolio Earthquake PML” is as of the survey in March 2016
on assets owned at the end of the fiscal period ended March
31, 2016 (end of 21st fiscal period).

51

Portfolio Map (2)Greater Tokyo / Major Urban Areas

Greater Tokyo / Other Urban Areas
Residence

Residence

Residence

Major Cities Nationwide
Residence

Residence-1

Esty Maison GINZA

Residence-69

Esty Maison SENGOKU

Residence-11

Esty Maison MACHIDA

Residence-100 Prime Maison ODORI KOEN

Residence-3

Esty Maison AZABUNAGASAKA

Residence-70

Esty Maison DAIZAWA

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

Residence-101 Prime Maison MINAMI 2-JO

Residence-4

Esty Maison EBISU II

Residence-71

Esty Maison TOGOSHI

Residence-40

Esty Maison HACHIOJIMINAMINO

Residence-102 Prime Maison KAMOKAMOGAWA

Residence-5

Esty Maison EBISU

Residence-74

Esty Maison SHIROKANEDAI

Residence-50

Prime Maison MUSASHINONOMORI

Residence-103 Prime Maison CENTRAL PARK

Residence-6

Esty Maison KANDA

Residence-75

Esty Maison HIGASHISHINJUKUResidence-109 Esty Maison TSUTSUJIGAOKA

Residence-107 Granmast KANAZAWA NISHIIZUMIResidence-8

Esty Maison KITASHINJUKUResidence-76

Esty Maison MOTOAZABUResidence-111 MAST LIFE HINO

Residence-108 Granmast UNOMORI

Residence-10 Esty Maison ASAKUSAKOMAGATA

Residence-77

Esty Maison TORITSUDAIGAKU

Residence-12 Esty Maison KAWASAKI

Residence-78

Esty Maison MUSASHIKOYAMA II

Residence-14 Esty Maison SHINKAWASAKI

Residence-79

Esty Maison NAKANO

Residence-15 Esty Maison YOKOHAMA

Residence-80

Esty Maison SHINNAKANO

Residence-16 Esty Maison KAMEIDO

Residence-81

Esty Maison NAKANOFUJIMICHO

Residence-17 Esty Maison MEGURO

Residence-82

Esty Maison TETSUGAKUDO

Residence-19 Esty Maison SUGAMO

Residence-83

Esty Maison KOENJI

Residence-21 Esty Maison MEGUROHONCHO

Residence-84

Esty Maison OSHIAGE

Residence-22 Esty Maison HAKURAKU

Residence-85

Esty Maison AKABANE

Residence-24 Esty Maison GOTANDA

Residence-86

Esty Maison OJI

Residence-25 Esty Maison OISENDAIZAKA

Residence-87

Prime Maison WASEDA

Residence-26 Esty Maison SHINAGAWA SEASIDE

Residence-88

Prime Maison HATCHOBORIResidence-27 Esty Maison MINAMIAZABUResidence-30 Esty Maison KAWASAKI II
Residence-31 Esty Maison AZABUJUBAN
Residence-33 Esty Maison ITABASHIHONCHO
Residence-34 Esty Maison OIZUMIGAKUEN

Residence-89
Residence-90
Residence-91
Residence-94
Residence-95

Prime Maison JINBOCHO
Prime Maison GOTENYAMA EAST
MAST LIFE AKIHABARA
Esty Maison KINSHICHO II
Esty Maison OJIMA

Residence-39 Esty Maison HIGASHISHINAGAWA

Residence-98

Prime Maison MORISHITA

Residence-42 Esty Maison ITABASHIKUYAKUSHOMAE

Residence-99

Prime Maison SHINAGAWA

Residence-43 Esty Maison MUSASHIKOYAMA

Residence-104 MAST LIFE YAHIRO

Residence-44 Esty Maison SENDAGIResidence-45 Esty Maison YOTSUYASAKAMACHI
Residence-48 Esty Maison SANGENJAYAResidence-53 Esty Maison SANGENJAYA IIResidence-54 Esty Maison ITABASHI C6Residence-56 Esty Maison KINSHICHO
Residence-57 Esty Maison MUSASHIKOGANEIResidence-62 Esty Maison AKIHABARA
Residence-63 Esty Maison SASAZUKA
Residence-64 Prime Maison GINZA EAST

Residence-105 Prime Maison EBISU
Residence-106 Esty Maison SHIBAURA
Residence-110 Esty Maison KOHOKU TSUNASHIMA
Residence-112 Prime Maison YOKOHAMA NIHON-ODORIOther Real Estate in Trust (Retail Properties)
Retail-4

b-town MINAMIAOYAMA

Major Cities Nationwide
Residence
Residence-20

Esty Maison KYOBASHI

Residence-23

Esty Maison MINAMIHORIE

Residence-28

Esty Maison JOTO

Residence-29

Esty Maison TSUKAMOTO

Residence-113 KOBE Women’s Student Housing

Other Real Estate in Trust (Retail Properties)
Retail-1

HAMAMATSU Plaza

Property acquired as of April 1, 2016

Residence
Residence-114 Prime Maison SHIBUYAResidence-35

Esty Maison TENJINHIGASHI I

Residence-36

Esty Maison TENJINHIGASHI II

Residence-37

Esty Maison SHIJONISHINOTOIN

Residence-41

Esty Maison NISHINAKAJIMA

Residence-46

Esty Maison HAKATAHIGASHI

Residence-47

Esty Maison KAMIGOFUKUResidence-51

Prime Maison HIGASHISAKURA

Residence-52

Prime Maison KAYABAKOEN

Residence-55

MAST HAKATA

Residence-58

Prime Maison GOKISO

Residence-59

Prime Maison YUHIGAOKA

Residence-60

Prime Maison KITATANABE

Residence-61

Prime Maison MOMOCHIHAMAResidence-65

Prime Maison TAKAMI

Residence-66

Prime Maison YADAMINAMI

Residence-67

Prime Maison TERIHA

Residence-68

Esty Maison HIGASHISHIRAKABE

Residence-72

Esty Maison KAWARAMACHI

Residence-73

Esty Maison NISHITENMA

Residence-92

Esty Maison AOIResidence-93

Esty Maison YAKUIN

Residence-96

Prime Maison FUJIMIDAI

Residence-97

Esty Maison TSURUMAI

Residence-115 Prime Maison HATSUDAIResidence-116 Esty Maison UEMACHIDAIResidence-117 Esty Maison KOBE-SANNOMIYA

52

List of Properties Owned at End of Period (1)Acquisition Price
Property No.

Property Name

Location

Site Area(m2)

Total Floor
Area
(m2)

Price
(Million yen)Occupancy Ratio (%)
Estimated
Value at
End of
As of Sept. 30, As of Ｍａｒ. 31,
Period2015
2016(Million yen)

Ratio
(%)

Completion Date

Residence- 1

Esty Maison GINZA

Ginza, Chuo-ku, Tokyo

636.36

7,836.57

5,290

2.7

6,090

97.6

95.2 February 7, 2005

Residence- 3

Esty Maison AZABUNAGASAKA

Roppongi, Minato-ku, Tokyo

677.452,317.87

1,730

0.9

1,690

98.0

91.4 January 16, 2004

Residence- 4

Esty Maison EBISU II

Higashi, Shibuya-ku, Tokyo

561.582,452.69

1,960

1.0

1,890

83.8

97.8 June 13, 2003

Residence- 5

Esty Maison EBISU

Hiroo, Shibuya-ku, Tokyo

169.00871.90

700

0.4

812

96.1

93.5 October 20, 2004

Residence- 6

Esty Maison KANDA

Kandata-cho, Chiyoda-ku, Tokyo

307.692,028.19

1,360

0.7

1,490

93.2

98.7 February 20, 2004

Residence- 8

Esty Maison KITASHINJUKU

Kita-shinjuku, Shinjuku-ku, Tokyo

504.412,204.07

1,290

0.7

1,500

98.1

97.4 August 6, 2004

Residence-10

Esty Maison ASAKUSAKOMAGATA

Komagata, Taito-ku, Tokyo

663.54

3,406.10

1,870

1.0

2,040

95.6

96.4 July 28, 2004

Residence-11

Esty Maison MACHIDA

Hara-machida, Machida-shi, Tokyo

587.484,033.59

1,360

0.7

1,490

95.8

96.4 February 23, 2004

Residence-12

Esty Maison KAWASAKI

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

683.694,656.10

2,130

1.1

2,350

94.0

99.3 July 15, 2004

Residence-14

Esty Maison SHINKAWASAKI

Furuichiba, Saiwai-ku, Kawasaki-shi, Kanagawa

1,992.09

3,737.47

1,018

0.5

1,210

100.0

100.0 March 5, 1999

Residence-15

Esty Maison YOKOHAMA

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

611.41

3,076.45

2,090

1.1

2,000

100.0

100.0 January 23, 2007

Residence-16

Esty Maison KAMEIDO

Kameido, Koto-ku, Tokyo

438.432,899.67

1,650

0.9

1,490

89.6

95.9 November 30, 2005

Residence-17

Esty Maison MEGURO

Mita, Meguro-ku, Tokyo

578.01

1,283.92

887

0.5

1,030

97.5

97.5 November 28, 2005

1,150

91.4

96.9 January 10, 1998

Residence-18 Esty Maison YACHIYOMIDORIGAOKA

Midorigaoka, Yachiyo-shi, Chiba

1,289.14

5,420.53

1,348

0.7

Residence-19

Esty Maison SUGAMO

Sugamo, Toshima-ku, Tokyo

965.702,785.83

1,510

0.8

1,580

92.5

100.0 February 22, 2007

Residence-20

Esty Maison KYOBASHI

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

799.685,995.82

2,774

1.4

2,830

93.9

96.1 March 2, 2006

Residence-21

Esty Maison MEGUROHONCHO

Megurohoncho, Meguro-ku, Tokyo

865.22

1,975.84

1,220

0.6

1,090

89.8

93.4 February 22, 2006

Residence-22

Esty Maison HAKURAKU

Rokkakubashi, Kanagawa-ku, Yokohama-shi, Kanagawa

457.54

1,593.68

844

0.4

879

92.9

98.3 February 2, 2006

Residence-23

Esty Maison MINAMIHORIE

Minamihorie, Nishi-ku, Osaka-shi, Osaka

475.06

1,994.14

1,055

0.5

1,020

95.4

100.0 February 19, 2007

Residence-24

Esty Maison GOTANDA (Note 5)

Nishi-gotanda, Shinagawa-ku, Tokyo

593.325,590.34

3,043

1.6

2,890

91.3

93.5 March 2, 2006

Residence-25

Esty Maison OISENDAIZAKA

Higashi-oi, Shinagawa-ku, Tokyo

558.393,440.73

2,440

1.3

2,590

99.2

98.7 August 10, 2006

Residence-26

Esty Maison SHINAGAWA SEASIDE

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,049.00

3,127.48

2,200

1.1

2,050

91.1

95.3 June 23, 2006

Residence-27

Esty Maison MINAMIAZABUMinamiazabu, Minato-ku, Tokyo

487.27

1,479.61

1,300

0.7

1,220

98.1

98.1 August 23, 2006

Residence-28

Esty Maison JOTO

Noe, Joto-ku, Osaka-shi, Osaka

740.492,232.26

1,075

0.6

957

93.6

97.0 August 31, 2006

Residence-29

Esty Maison TSUKAMOTO

Tsukamoto, Yodogawa-ku, Osaka-shi, Osaka

808.542,565.66

1,250

0.6

1,050

95.8

97.9 August 10, 2006

Residence-30

Esty Maison KAWASAKI II

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

601.383,193.14

1,900

1.0

1,950

93.5

97.7 February 27, 2007

Residence-31

Esty Maison AZABUJUBAN

Azabujuban, Minato-ku, Tokyo

380.26

2,097.45

2,700

1.4

2,660

92.6

96.8 February 22, 2007

53

List of Properties Owned at End of Period (2)Acquisition Price
Property No.

Property Name

Location

Site Area(m2)

Total Floor
Area
(m2)

Price
(Million yen)Occupancy Ratio (%)
Estimated
Value at
End of
As of Sept. 30, As of Mar. 31,
Period2015
2016(Million yen)

Ratio
(%)

Completion Date

Residence-33

Esty Maison ITABASHIHONCHO

Yamato-cho, Itabashi-ku, Tokyo

220.85

1,446.78

1,000

0.5

925

89.2

95.4 February 27, 2007

Residence-34

Esty Maison OIZUMIGAKUEN

Higashi-Oizumi, Nerima-ku, Tokyo

618.001,542.16

871

0.4

776

93.2

98.3 February 22, 2007

Residence-35

Esty Maison TENJINHIGASHI I

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

239.18

1,158.70

445

0.2

394

93.5

100.0 January 31, 2007

Residence-36

Esty Maison TENJINHIGASHI II

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

514.892,108.69

840

0.4

737

95.1

100.0 May 23, 2007

Residence-37

Esty Maison SHIJONISHINOTOIN

Myodenji-cho, Shijo-sagaru, Nishinotoin-dori, Shimogyoku, Kyoto-shi, Kyoto

400.593,374.74

1,420

0.7

1,190

95.6

92.0 April 8, 2008

Residence-39

Esty Maison HIGASHISHINAGAWA

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,028.92

3,338.12

2,610

1.3

2,400

92.3

88.1 May 23, 2008

Residence-40

Esty Maison HACHIOJIMINAMINO

Nishikatakura, Hachioji-shi, Tokyo

1,134.50

2,243.06

1,000

0.5

865

95.3

96.5 March 6, 2007

Residence-41

Esty Maison NISHINAKAJIMA

Higashinakajima, Higashiyodogawa-ku, Osaka-shi,
Osaka

969.02

3,947.24

2,250

1.2

1,900

93.0

93.2 April 18, 2007

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

Itabashi, Itabashi-ku, Tokyo

731.71

4,322.19

2,700

1.4

2,490

95.1

96.8 April 22, 2007

Residence-43

Esty Maison MUSASHIKOYAMA (Note 5)

Ebara, Shinagawa-ku, Tokyo

512.62

1,616.87

1,012

0.5

1,070

96.0

96.4 November 5, 2007

Residence-44

Esty Maison SENDAGI (Note 5)

Sendagi, Bunkyo-ku, Tokyo

250.44

1,239.10

757

0.4

682

95.8

93.1 January 9, 2008

Residence-45

Esty Maison YOTSUYASAKAMACHI (Note 5)

Yotsuyasakamachi, Shinjuku-ku, Tokyo

905.083,675.01

2,300

1.2

2,060

96.7

95.3 March 29, 2008

Residence-46

Esty Maison HAKATAHIGASHI

Yoshizuka, Hakata-ku, Fukuoka-shi, Fukuoka

4,590.91

9,465.09

2,250

1.2

2,470

94.7

95.6 November 21, 2007

Residence-47

Esty Maison KAMIGOFUKUKamigofukumachi, Hakata-ku, Fukuoka-shi, Fukuoka

593.552,523.71

900

0.5

859

92.5

98.5 March 14, 2008

Residence-48

Esty Maison SANGENJAYASangenjaya, Setagaya-ku, Tokyo

153.83954.94

871

0.4

859

100.0

100.0 January 22, 2008

Residence-50

Prime Maison MUSASHINONOMORI

Josuihoncho, Kodaira-shi, Tokyo

5,116.62

4,412.42

1,560

0.8

1,890

96.4

96.2 December 19, 2007

Residence-51

Prime Maison HIGASHISAKURA

Higashisakura, Higashi-ku, Nagoya-shi, Aichi

846.053,517.62

1,140

0.6

1,440

95.8

96.3 February 15, 2008

Residence-52

Prime Maison KAYABAKOEN

Kayaba, Chikusa-ku, Nagoya-shi, Aichi

1,129.02

2,301.42

640

0.3

772

92.4

96.1 November 7, 2006

Residence-53

Esty Maison SANGENJAYA II

Shimouma, Setagaya-ku, Tokyo

473.85

1,006.89

714

0.4

826

91.2

97.0 January 28, 2008

Residence-54

Esty Maison ITABASHI C6Oyama-higashi-cho, Itabashi-ku, Tokyo

Residence-55

MAST HAKATA (Note 6)

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

Residence-56

Esty Maison KINSHICHO

Residence-57

773.485,249.34

2,260

1.2

2,480

91.1

96.6 March 12, 2008

2,457.01

11,621.67

1,920

1.0

2,440

100.0

100.0 January 15, 2005

Kinshi, Sumida-ku, Tokyo

338.57

1,718.10

1,050

0.5

1,240

97.2

100.0 September 6, 2006

Esty Maison MUSASHIKOGANEI

Honcho, Koganei-shi, Tokyo

520.252,676.36

1,450

0.7

1,690

97.1

96.1 February 2, 2005

Residence-58

Prime Maison GOKISO

Ayuchitori, Showa-ku, Nagoya-shi, Aichi

1,429.67

4,691.72

1,640

0.8

1,850

96.7

96.7 October 28, 2008

Residence-59

Prime Maison YUHIGAOKA

Ueshio, Tennoji-ku, Osaka-shi, Osaka

547.152,336.49

810

0.4

916

100.0

100.0 February 16, 2007

Residence-60

Prime Maison KITATANABE

Kitatanabe, Higashisumiyoshi-ku, Osaka-shi, Osaka

640.92

2,112.46

540

0.3

594

91.4

95.5 June 13, 2006

54

List of Properties Owned at End of Period (3)Acquisition Price
Property No.

Property Name

Location

Residence-61

Prime Maison MOMOCHIHAMA

Momochihama, Sawara-ku Fukuoka-shi, Fukuoka

Residence-62

Esty Maison AKIHABARA

Residence-63

Site Area(m2)

Total Floor
Area
(m2)

Price
(Million yen)Occupancy Ratio (%)
Estimated
Value at
End of
As of Sept. 30, As of Mar. 31,
Period2015
2016(Million yen)

Ratio
(%)

Completion Date

4,069.42

8,945.61

1,810

0.9

1,970

100.0

100.0 February 29, 1996

Ueno, Taito-ku, Tokyo

458.322,821.47

1,560

0.8

1,900

97.5

96.2 February 24, 2006

Esty Maison SASAZUKA

Sasazuka, Shibuya-ku, Tokyo

909.33

4,263.10

2,830

1.5

3,130

88.2

96.3 September 7, 2004

Residence-64

Prime Maison GINZA EAST

Tsukiji, Chuo-ku, Tokyo

969.108,724.48

5,205

2.7

5,860

96.3

95.1 February 28, 2006

Residence-65

Prime Maison TAKAMI

Takami, Chikusa-ku, Nagoya-shi, Aichi

1,129.17

2,354.34

905

0.5

987

89.3

89.4 August 27, 2008

Residence-66

Prime Maison YADAMINAMI

Yadaminami, Higashi-ku, Nagoya-shi, Aichi

1,148.53

2,430.23

715

0.4

782

95.7

100.0 July 18, 2007

Residence-67

Prime Maison TERIHA

Kashiiteriha, Higashi-ku, Fukuoka-shi, Fukuoka

4,130.59

7,953.60

1,110

0.6

1,250

100.0

100.0 August 31, 2005

Residence-68

Esty Maison HIGASHISHIRAKABE

Yoshino, Higashi-ku, Nagoya-shi, Aichi

1,959.76

4,232.39

1,350

0.7

1,490

100.0

100.0 February 27, 2006

Residence-69

Esty Maison SENGOKU

Sengoku, Bunkyo-ku, Tokyo

1,002.14

2,068.21

1,075

0.6

1,270

98.4

98.4 August 6, 2009

Residence-70

Esty Maison DAIZAWA

Daizawa, Setagaya-ku, Tokyo

1,901.36

2,948.98

1,870

1.0

2,120

95.4

92.1 February 18, 2010

Residence-71

Esty Maison TOGOSHI

Togoshi, Shinagawa-ku, Tokyo

679.82

2,545.90

1,370

0.7

1,650

100.0

98.9 June 25, 2009

Residence-72

Esty Maison KAWARAMACHI

Kawaramachi, Chuo-ku, Osaka-shi, Osaka

655.894,580.48

1,640

0.8

1,860

94.5

94.9 October 17, 2006

Residence-73

Esty Maison NISHITENMA

Nishitenma, Kita-ku, Osaka-shi, Osaka

Residence-74

Esty Maison SHIROKANEDAI

Kamiosaki, Shinagawa-ku, Tokyo

Residence-75

Esty Maison HIGASHISHINJUKUResidence-76

519.65

4,514.05

1,440

0.7

1,620

95.5

95.8 November 30, 2007

1,279.67

2,797.66

1,900

1.0

2,250

95.8

100.0 September 16, 2003

Shinjuku, Shinjuku-ku, Tokyo

704.82

2,227.87

1,370

0.7

1,550

97.9

100.0 April 17, 2009

Esty Maison MOTOAZABU

Motoazabu, Minato-ku, Tokyo

755.991,699.44

1,170

0.6

1,470

100.0

100.0 November 9, 2009

Residence-77

Esty Maison TORITSUDAIGAKU

Tairamachi, Meguro-ku, Tokyo

766.84

1,399.75

729

0.4

816

87.1

96.0 February 23, 2009

Residence-78

Esty Maison MUSASHIKOYAMA II

Koyama, Shinagawa-ku, Tokyo

609.81

1,436.58

844

0.4

976

100.0

97.8 May 25, 2009

Residence-79

Esty Maison NAKANO

Chuo, Nakano-ku, Tokyo

687.472,608.04

1,540

0.8

1,760

95.2

98.9 June 24, 2009

Residence-80

Esty Maison SHINNAKANO

Honcho, Nakano-ku, Tokyo

747.64

1,508.07

847

0.4

951

98.0

91.9 October 22, 2009

Residence-81

Esty Maison NAKANOFUJIMICHO

Yayoicho, Nakano-ku, Tokyo

907.66

1,531.56

863

0.4

944

90.8

87.0 February 16, 2009

Residence-82

Esty Maison TETSUGAKUDO

Matsugaoka, Nakano-ku, Tokyo

686.93

1,858.00

954

0.5

1,100

90.0

100.0 October 21, 2009

Residence-83

Esty Maison KOENJI

Koenjiminami, Suginami-ku, Tokyo

1,100.15

1,977.24

958

0.5

1,100

96.6

95.4 March 10, 2009

4,344.84

1,950

1.0

2,330

98.4

96.8 April 23, 2010

Residence-84

Esty Maison OSHIAGE

Narihira, Sumida-ku, Tokyo

1,134.70

Residence-85

Esty Maison AKABANE

Akabane, Kita-ku, Tokyo

1,157.02

5,675.18

2,730

1.4

3,100

100.0

91.0 November 25, 2009

Residence-86

Esty Maison OJI

Oji, Kita-ku, Tokyo

518.872,939.76

1,380

0.7

1,550

94.4

96.5 July 6, 2010

Residence-87

Prime Maison WASEDA

Waseda Tsurumaki-cho, Shinjuku-ku, Tokyo

358.54

1,914.93

1,280

0.7

1,520

98.5

94.5 November 8, 201255

List of Properties Owned at End of Period (4)Acquisition Price
Location

Site Area(m2)

Total Floor
Area
(m2)

Occupancy Ratio (%)
Estimated
Value at
End of
As of Sept. 30, As of Mar. 31,
Period2015
2016(Million yen)

Property No.

Property Name

Residence-88

Prime Maison HATCHOBORI

Hatchobori, Chuo-ku, Tokyo

302.07

1,901.58

1,160

0.6

1,390

96.9

100.0 November 16, 2012

Residence-89

Prime Maison JINBOCHO

Kandajinbo-cho, Chiyoda-ku, Tokyo

389.482,341.30

1,640

0.8

1,840

100.0

97.3 March 1, 2013

Residence-90

Prime Maison GOTENYAMA EAST

Kitashinagawa, Shinagawa-ku, Tokyo

2,167.60

3,727.89

2,120

1.1

2,640

95.3

95.7 January 18, 2011

Residence-91

MAST LIFE AKIHABARA

Kanda Sakumagashi, Chiyoda-ku, Tokyo

151.48939.79

480

0.2

523

100.0

100.0 October 3, 2006

Residence-92

Esty Maison AOI

Aoi, Higashi-ku, Nagoya-shi, Aichi

906.67

5,107.47

2,160

1.1

2,370

93.1

95.7 October 3, 2007

Residence-93

Esty Maison YAKUIN

Hirao, Chuo-ku, Fukuoka-shi, Fukuoka

1,342.00

5,590.13

2,008

1.0

2,260

96.9

97.4 February 2, 2006

Residence-94

Esty Maison KINSHICHO II

Kotobashi, Sumida-ku, Tokyo

1,679.75

11,160.19

6,720

3.5

7,910

96.5

97.4 January 17, 2008

Residence-95

Esty Maison OJIMA

Ojima, Koto-ku, Tokyo

3,003.87

11,940.22

7,120

3.7

8,510

98.9

96.2 September 13, 2007

Residence-96

Prime Maison FUJIMIDAI

Fujimidai, Chikusa-ku, Nagoya-shi, Aichi

4,882.14

6,173.03

1,755

0.9

1,970

92.4

95.5 April 24, 2007

Residence-97

Esty Maison TSURUMAI

Chiyoda, Naka-ku, Nagoya-shi, Aichi

3,470.05

21,577.20

3,760

1.9

4,220

100.0

100.0 November 27, 1999

Residence-98

Prime Maison MORISHITA

Morishita, Koto-ku, Tokyo

461.602,668.30

1,720

0.9

1,870

97.7

98.9 May 14, 2013

Residence-99

Prime Maison SHINAGAWA

Kita-Shinagawa, Shinagawa-ku, Tokyo

972.94

2,693.31

1,680

0.9

1,850

96.0

96.9 February 18, 2014

Price
(Million yen)

Ratio
(%)

Completion Date

Residence-100 Prime Maison ODORI KOEN

Odori-nishi, Chuo-ku, Sapporo-shi, Hokkaido

1,007.42

11,090.88

2,660

1.4

3,040

90.9

90.2 December 15, 2008

Residence-101 Prime Maison MINAMI 2-JO

Minami-2jo Nishi, Chuo-ku, Sapporo-shi, Hokkaido

1,085.66

8,477.68

1,470

0.8

1,860

100.0

99.1 November 30, 2009

Residence-102 Prime Maison KAMOKAMOGAWA

Minami-7jo Nishi, Chuo-ku, Sapporo-shi, Hokkaido

754.61

6,160.49

970

0.5

1,190

97.4

98.2 October 30, 2009

Residence-103 Prime Maison CENTRAL PARK (Note 7)

Kashii Teriha, Higashi-ku, Fukuoka-shi, Fukuoka

5,000.02

10,249.72

2,230

1.2

2,283

94.3

97.3 February 3, 2011

Residence-104 MAST LIFE YAHIRO

Yahiro, Sumida-ku, Tokyo

1,296.64

4,012.49

1,670

0.9

1,800

100.0

100.0 January 14, 2011

Residence-105 Prime Maison EBISU

Ebisu, Shibuya-ku, Tokyo

587.16

3,798.12

3,585

1.8

4,170

99.2

95.2 June 5, 2014

Residence-106 Esty Maison SHIBAURA

Shibaura, Minato-ku, Tokyo

1,217.25

4,855.53

2,730

1.4

2,780

91.6

94.4 August 26, 1996

Residence-107 Granmast KANAZAWA NISHIIZUMI

Nishiizumi, Kanazawa-shi, Ishikawa

1,633.40

5,181.40

1,005

0.5

1,050

100.0

100.0 September 14, 2007

Residence-108 Granmast UNOMORIUnomori, Yokkaichi-shi, Mie

790.452,444.91

745

0.4

786

100.0

100.0 April 13, 2009

Residence-109 Esty Maison TSUTSUJIGAOKA

Nishitsutsujigaoka, Chofu-shi, Tokyo

1,503.25

2,456.48

871

0.4

911

92.3

94.1 March 9, 2002

Residence-110 Esty Maison KOHOKU TSUNASHIMA

Shin-yoshida Higashi, Kohoku-ku, Yokohama-shi,
Kanagawa

5,632.35

7,408.15

2,680

1.4

2,731

100.0

100.0

Residence-111 MAST LIFE HINO

Shinmachi, Hino-shi, Tokyo

600.203,341.96

1,290

0.7

1,340

‒

95.8 January 13, 2010

Residence-112 Prime Maison YOKOHAMA NIHON-ODORI

Honcho, Naka-ku, Yokohama-shi, Kanagawa, and others

887.06

8,196.14

4,270

2.2

4,700

‒

94.5 June 27, 2014

Residence-113 KOBE Women’s Student Housing

Koyocho Naka, Higashinada-ku, Kobe-shi, Hyogo

4,494.55

23,773.26

5,700

2.9

5,720

‒

100.0 February 28, 2002

122,787.67

438,467.37

188,53997.2

203,833

96.0

Residence Subtotal(Note 8)97.0

56

List of Properties Owned at End of Period (5)Acquisition Price
Property No.

Occupancy Ratio (%)
Estimated
Value at
End of
As of Sept. 30, As of Mar. 31,
Period2015
2016(Million yen)

Location

Site Area(m2)

Total Floor
Area (m2)

73,937.28

11,229.79

3,820

2.0

2,562

100.0

100.0

(Note 9)385.32797.63

1,530

0.8

1,170

100.0

100.0

February 28, 2006

Other real estate in trust （retail properties） Subtotal

74,322.60

12,027.42

5,350

2.8

3,732

100.0

100.0

Portfolio Total

197,110.27

450,494.79

193,890

100.0

207,565

96.7

97.2

Property Name

Retail-1

HAMAMATSU Plaza (Note 9)

Kaminishi-cho, Higashi-ku, Hamamatsu-shi, Shizuoka,
and others

Retail-4

b-town MINAMIAOYAMAMinamiaoyama, Minato-ku, Tokyo

Owned as of March 31, 2016 (end of 21st fiscal period)
Acquired on April 1, 2016 (22nd fiscal period)
Owned as of the date of this document (May 17, 2016)

Price(Million yen)

Ratio
(%)

108 properties

193,890 million yen

4 properties

6,810 million yen

112 properties

200,700 million yen

Completion Date

Note 1 : Based on information as of March 31, 2016. Occupancy ratios are rounded to the nearest first decimal place.
Note 2 : Concerning “Acquisition Price”, amounts of less than one million yen are rounded down, and ratios indicate the portion of the total acquisition price described in “Portfolio Total” for properties owned and are rounded to the nearest first decimal
place.
Note 3 : The listed “Site Area”, “Total Floor Area” figures and “Completion Date” are based on indications given in the register.
Note 4 : The “Estimated Value at End of Period” is the amount appraised based on an appraisal by a real estate appraiser and rounded down to the nearest million yen.
Note 5 : The ratio of site rights (co-ownership rights) for Esty Maison GOTANDA, Esty Maison MUSASHIKOYAMA, Esty Maison SENDAGI and Esty Maison YOTSUYASAKAMACHI are 387,036/426,933, 117,678/127,609, 89,730/103,842 and245,317/329,739, respectively. However, “Site Area” indicates the total land area of the real estate in trust, and “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.
Note 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 isindicated in the land leasehold agreement.
Note 7 : Part of the land of Prime Maison CENTRAL PARK (Lot: 23-32) is leased land and the building (store) on the leased land is owned by the leaseholder, and thus the floor area of the building (store) isn’t included in the “Total Floor Area” above and“Completion Date” of the building (store) isn’t indicated.
Note 8 : Esty Maison KOHOKU TSUNASHIMA is comprised of three buildings, the “East”, the “West” and the “Annex”. The “Completion Date” are March 11, 2002, October 23, 2002 and September 19, 2002, respectively.
Note 9 : Hamamatsu Plaza is a commercial complex divided into Hamamatsu Plaza East area and the Hamamatsu Plaza West area, comprises a total of seven buildings, with five buildings located in Hamamatsu Plaza East area (the former Ito-Yokado
Building, the Akachan Honpo Building, the Xebio Building, the Hamapla & Frespo Building and a management building) and two buildings located in the Hamamatsu Plaza West area (the Hamamatsu West Building and the Hamamatsu PlazaSports Building (Zexis)). The Investment Corporation acquired trust beneficiary interests in real estate for these other than the Hamapla & Frespo Building and the building of the Hamamatsu Plaza Sports Building (Zexis) on July 28, 2005 andstarted operations, but a portion was disposed on March 30, 2012 and September 30, 2013. From September 30, 2013 onward, the Investment Corporation holds only a 49% quasi-co-ownership interest in the real estate trust beneficial interest of
Hamamatsu Plaza East excluding the former Ito-Yokado Building and its site (hereafter, the “Hamamatsu Plaza East Xebio Building and Other Portions”). However, for the “Site Area” and “Total Floor Area,” those for the entire Hamamatsu Plaza
East Xebio Building and Other Portions are indicated. In addition, the Hamapla & Frespo Building is not included in the “Total Floor Area” because only the land is owned and leased by the Investment Corporation (the buildings on it are owned by
the tenants). The “Acquisition Price” and “Estimated Value at End of Period” are for the 49% quasi-co-ownership interest of the Hamamatsu Plaza East Xebio Building and Other Portions, and do not include the disposed portion. With regard to“Completion date”, the management building was completed on November 7, 2000, and Akachan Honpo Building and XEBIO Building were completed on November 9, 2000. The “Completion Date” of Hamapla & Frespo Building is not indicated,
however, because the buildings on the land are owned by the tenants. Furthermore, a store Ito-Yokado Co., Ltd. operated in the former Ito-Yokado Building had been closed on January 18, 2015.

57

List of Fiscal Period-End Estimated Values (1)Estimated value at end of period(Million yen)
Property No.

Property Name
As of Sept. 30,
2015

As of Mar. 31,
2016

Direct capitalization rate (%)
Change(Million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Sept. 30,
2015

As of Mar. 31,
2016

As of Sept. 30,
2015

As of Mar. 31,
2016

As of Sept. 30,
2015

As of Mar. 31,
2016

Balance sheet
amount(Million yen)

Unrealized
gain/loss(Million yen)

Residence-1

Esty Maison GINZA

5,970

6,090

120

4.4

4.3

4.6

4.5

4.6

4.5

4,760

1,329

Residence-3

Esty Maison AZABUNAGASAKA

1,660

1,690

30

4.5

4.4

4.6

4.5

4.7

4.6

1,623

66

Residence-4

Esty Maison EBISU II

1,870

1,890

20

4.5

4.4

4.6

4.5

4.7

4.6

1,830

59

Residence-5

Esty Maison EBISU

807

812

5

4.4

4.3

4.5

4.4

4.6

4.5

643

168

Residence-6

Esty Maison KANDA

1,460

1,490

30

4.5

4.4

4.6

4.5

4.7

4.6

1,233

256

Residence-8

Esty Maison KITASHINJUKU

1,460

1,500

40

4.7

4.6

4.7

4.6

4.9

4.8

1,177

322

Residence-10

Esty Maison ASAKUSAKOMAGATA

2,000

2,040

40

4.7

4.6

4.7

4.6

4.9

4.8

1,723

316

Residence-11

Esty Maison MACHIDA

1,470

1,490

20

5.2

5.1

5.1

5.0

5.4

5.3

1,096

393

Residence-12

Esty Maison KAWASAKI

2,320

2,350

30

4.9

4.8

4.9

4.8

5.1

5.0

1,844

505

Residence-13

Esty Maison IMAIKE (Note 4)

204

-

-

6.0

-

5.4

-

6.2

-

-

-

Residence-14

Esty Maison SHINKAWASAKI

1,190

1,210

20

5.3

5.2

4.1

4.0

5.5

5.4

935

274

Residence-15

Esty Maison YOKOHAMA

2,060

2,000

-60

4.9

4.8

4.7

4.6

5.1

5.0

1,918

81

Residence-16

Esty Maison KAMEIDO

1,450

1,490

40

4.9

4.8

4.7

4.6

5.1

5.0

1,433

56

Residence-17

Esty Maison MEGURO

1,030

1,030

-

4.4

4.4

4.2

4.2

4.6

4.6

799

230

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

1,140

1,150

10

5.3

5.2

5.2

5.1

5.4

5.3

1,181

-31

Residence-19

Esty Maison SUGAMO

1,580

1,580

-

4.4

4.3

4.2

4.1

4.6

4.5

1,462

117

Residence-20

Esty Maison KYOBASHI

2,770

2,830

60

5.1

5.0

5.0

4.9

5.2

5.1

2,335

494

Residence-21

Esty Maison MEGUROHONCHO

1,050

1,090

40

4.6

4.5

4.4

4.3

4.8

4.7

1,125

-35

Residence-22

Esty Maison HAKURAKU

855

879

24

5.0

4.9

4.8

4.7

5.2

5.1

724

154

Residence-23

Esty Maison MINAMIHORIE

998

1,020

22

4.9

4.8

4.7

4.6

5.1

5.0

955

64

Residence-24

Esty Maison GOTANDA

2,830

2,890

60

4.8

4.7

4.5

4.4

5.0

4.9

2,770

119

Residence-25

Esty Maison OISENDAIZAKA

2,540

2,590

50

4.6

4.5

4.4

4.3

4.8

4.7

2,242

347

Residence-26

Esty Maison SHINAGAWA SEASIDE

2,010

2,050

40

4.4

4.3

4.2

4.1

4.6

4.5

1,994

55

Residence-27

Esty Maison MINAMIAZABU

1,180

1,220

40

4.1

4.0

3.9

3.8

4.3

4.2

1,204

15

Residence-28

Esty Maison JOTO

954

957

3

5.2

5.1

5.0

4.9

5.4

5.3

986

-29

Residence-29

Esty Maison TSUKAMOTO

1,050

1,050

-

5.2

5.2

5.0

5.0

5.4

5.4

1,127

-77

Residence-30

Esty Maison KAWASAKI II

1,950

1,950

-

4.6

4.5

4.4

4.3

4.8

4.7

1,738

211

Residence-31

Esty Maison AZABUJUBAN

2,610

2,660

50

4.1

4.0

3.9

3.8

4.3

4.2

2,612

47

58

List of Fiscal Period-End Estimated Values (2)Estimated value at end of period(Million yen)
Property No.

Property Name
As of Sept. 30,
2015

As of Mar. 31,
2016

Direct capitalization rate (%)
Change(Million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Sept. 30,
2015

As of Mar. 31,
2016

As of Sept. 30,
2015

As of Mar. 31,
2016

As of Sept. 30,
2015

As of Mar. 31,
2016

Balance sheet
amount(Million yen)

Unrealized
gain/loss(Million yen)

Residence-33

Esty Maison ITABASHIHONCHO

943

925

-18

4.5

4.4

4.3

4.2

4.7

4.6

921

3

Residence-34

Esty Maison OIZUMIGAKUEN

823

776

-47

4.6

4.5

4.4

4.3

4.8

4.7

801

-25

Residence-35

Esty Maison TENJINHIGASHI I

389

394

5

5.5

5.4

5.3

5.2

5.7

5.6

386

7

Residence-36

Esty Maison TENJINHIGASHI II

718

737

19

5.5

5.4

5.3

5.2

5.7

5.6

727

9

Residence-37

Esty Maison SHIJONISHINOTOIN

1,140

1,190

50

5.2

5.1

5.0

4.9

5.4

5.3

1,299

-109

Residence-39

Esty Maison HIGASHISHINAGAWA

2,370

2,400

30

4.7

4.6

4.5

4.4

4.9

4.8

2,462

-62

Residence-40

Esty Maison HACHIOJIMINAMINO

855

865

10

5.3

5.2

5.2

5.1

5.4

5.3

894

-29

Residence-41

Esty Maison NISHINAKAJIMA

1,880

1,900

20

5.1

5.0

4.9

4.8

5.3

5.2

1,946

-46

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

2,540

2,490

-50

4.5

4.4

4.3

4.2

4.7

4.6

2,502

-12

Residence-43

Esty Maison MUSASHIKOYAMA

1,050

1,070

20

4.5

4.4

4.3

4.2

4.7

4.6

955

114

Residence-44

Esty Maison SENDAGI

709

682

-27

4.5

4.4

4.3

4.2

4.7

4.6

718

-36

Residence-45

Esty Maison YOTSUYASAKAMACHI

1,990

2,060

70

4.4

4.3

4.2

4.1

4.6

4.5

2,207

-147

Residence-46

Esty Maison HAKATAHIGASHI

2,440

2,470

30

5.3

5.2

5.3

5.2

5.4

5.3

2,049

420

Residence-47

Esty Maison KAMIGOFUKU

856

859

3

5.2

5.1

5.2

5.1

5.3

5.2

821

37

Residence-48

Esty Maison SANGENJAYA

840

859

19

4.5

4.4

4.6

4.5

4.7

4.6

843

15

Residence-50

Prime Maison MUSASHINONOMORI

1,850

1,890

40

5.2

5.1

5.1

5.0

5.4

5.3

1,499

390

Residence-51

Prime Maison HIGASHISAKURA

1,400

1,440

40

5.2

5.1

5.1

5.0

5.4

5.3

1,058

381

Residence-52

Prime Maison KAYABAKOEN

756

772

16

5.4

5.3

5.3

5.2

5.6

5.5

605

166

Residence-53

Esty Maison SANGENJAYA II

819

826

7

4.6

4.5

4.7

4.6

4.8

4.7

677

148

Residence-54

Esty Maison ITABASHI C6

2,430

2,480

50

4.7

4.6

4.5

4.4

4.9

4.8

2,140

339

Residence-55

MAST HAKATA

2,380

2,440

60

5.3

5.2

4.8

4.7

5.5

5.4

1,827

612

Residence-56

Esty Maison KINSHICHO

1,230

1,240

10

4.6

4.5

4.4

4.3

4.8

4.7

1,046

193

Residence-57

Esty Maison MUSASHIKOGANEI

1,630

1,690

60

4.9

4.8

5.0

4.9

5.1

5.0

1,462

227

Residence-58

Prime Maison GOKISO

1,820

1,850

30

5.2

5.1

5.2

5.1

5.4

5.3

1,561

288

Residence-59

Prime Maison YUHIGAOKA

904

916

12

4.9

4.8

4.7

4.6

5.1

5.0

771

144

Residence-60

Prime Maison KITATANABE

594

594

-

5.2

5.2

5.0

5.0

5.4

5.4

513

80

5.4

5.1
(Note 5)5.1
(Note 5)

5.6

5.6

1,794

175

Residence-61

Prime Maison MOMOCHIHAMA

1,970

1,970

-

5.4

59

List of Fiscal Period-End Estimated Values (3)Estimated value at end of period(Million yen)
Property No.

Property Name
As of Sept. 30,
2015

As of Mar. 31,
2016

Direct capitalization rate (%)
Change(Million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Sept. 30,
2015

As of Mar. 31,
2016

As of Sept. 30,
2015

As of Mar. 31,
2016

As of Sept. 30,
2015

As of Mar. 31,
2016

Balance sheet
amount(Million yen)

Unrealized
gain/loss(Million yen)

Residence-62

Esty Maison AKIHABARA

1,860

1,900

40

4.6

4.5

4.4

4.3

4.8

4.7

1,517

382

Residence-63

Esty Maison SASAZUKA

3,060

3,130

70

4.6

4.5

4.4

4.3

4.8

4.7

2,798

331

Residence-64

Prime Maison GINZA EAST

5,740

5,860

120

4.4

4.3

4.2

4.1

4.6

4.5

5,046

813

Residence-65

Prime Maison TAKAMI

985

987

2

5.0

4.9

5.1

5.0

5.2

5.1

874

112

Residence-66

Prime Maison YADAMINAMI

768

782

14

5.4

5.3

5.3

5.2

5.6

5.5

688

93

Residence-67

Prime Maison TERIHA

1,240

1,250

10

5.6

5.5

5.4

5.3

5.8

5.7

1,069

180

Residence-68

Esty Maison HIGASHISHIRAKABE

1,490

1,490

-

5.3

5.3

5.1
(Note 5)5.1
(Note 5)

5.5

5.5

1,292

197

Residence-69

Esty Maison SENGOKU

1,240

1,270

30

4.4

4.3

4.2

4.1

4.6

4.5

1,091

178

Residence-70

Esty Maison DAIZAWA

2,060

2,120

60

4.4

4.3

4.2

4.1

4.6

4.5

1,898

221

Residence-71

Esty Maison TOGOSHI

1,600

1,650

50

4.5

4.4

4.6

4.5

4.7

4.6

1,381

268

Residence-72

Esty Maison KAWARAMACHI

1,830

1,860

30

5.0

4.9

5.1

5.0

5.2

5.1

1,595

264

Residence-73

Esty Maison NISHITENMA

1,610

1,620

10

5.0

4.9

5.1

5.0

5.2

5.1

1,401

218

Residence-74

Esty Maison SHIROKANEDAI

2,230

2,250

20

4.4

4.3

4.2

4.1

4.6

4.5

1,972

277

Residence-75

Esty Maison HIGASHISHINJUKU

1,520

1,550

30

4.5

4.4

4.6

4.5

4.7

4.6

1,369

180

Residence-76

Esty Maison MOTOAZABU

1,440

1,470

30

4.3

4.2

4.4

4.3

4.5

4.4

1,184

285

Residence-77

Esty Maison TORITSUDAIGAKU

804

816

12

4.4

4.3

4.5

4.4

4.6

4.5

739

76

Residence-78

Esty Maison MUSASHIKOYAMA II

957

976

19

4.5

4.4

4.3

4.2

4.7

4.6

849

126

Residence-79

Esty Maison NAKANO

1,720

1,760

40

4.5

4.4

4.3

4.2

4.7

4.6

1,549

210

Residence-80

Esty Maison SHINNAKANO

934

951

17

4.6

4.5

4.4

4.3

4.8

4.7

852

98

Residence-81

Esty Maison NAKANOFUJIMICHO

940

944

4

4.6

4.5

4.7

4.6

4.8

4.7

870

73

Residence-82

Esty Maison TETSUGAKUDO

1,100

1,100

-

4.6

4.5

4.4

4.3

4.8

4.7

956

143

Residence-83

Esty Maison KOENJI

1,090

1,100

10

4.5

4.4

4.6

4.5

4.7

4.6

968

131

Residence-84

Esty Maison OSHIAGE

2,300

2,330

30

4.7

4.6

4.7

4.6

4.9

4.8

1,956

373

Residence-85

Esty Maison AKABANE

3,050

3,100

50

4.7

4.6

4.5

4.4

4.9

4.8

2,721

378

Residence-86

Esty Maison OJI

1,520

1,550

30

4.7

4.6

4.5

4.4

4.9

4.8

1,377

172

Residence-87

Prime Maison WASEDA

1,490

1,520

30

4.4

4.3

4.2

4.1

4.6

4.5

1,265

254

Residence-88

Prime Maison HATCHOBORI

1,350

1,390

40

4.4

4.3

4.2

4.1

4.6

4.5

1,144

245

60

List of Fiscal Period-End Estimated Values (4)Estimated value at end of period(Million yen)
Property No.

Property Name
As of Sept. 30,
2015

As of Mar. 31,
2016

Direct capitalization rate (%)
Change(Million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Sept. 30,
2015

As of Mar. 31,
2016

As of Sept. 30,
2015

As of Mar. 31,
2016

As of Sept. 30,
2015

As of Mar. 31,
2016

Balance sheet
amount(Million yen)

Unrealized
gain/loss(Million yen)

Residence-89

Prime Maison JINBOCHO

1,790

1,840

50

4.5

4.4

4.3

4.2

4.7

4.6

1,623

216

Residence-90

Prime Maison GOTENYAMA EAST

2,570

2,640

70

4.3

4.2

4.1

4.0

4.5

4.4

2,116

523

Residence-91

MAST LIFE AKIHABARA

511

523

12

4.6

4.5

4.4

4.3

4.8

4.7

482

40

Residence-92

Esty Maison AOI

2,320

2,370

50

5.2

5.1

5.2

5.1

5.4

5.3

2,139

230

Residence-93

Esty Maison YAKUIN

2,260

2,260

-

5.0

5.0

5.1

5.1

5.2

5.2

2,071

188

Residence-94

Esty Maison KINSHICHO II

7,720

7,910

190

4.5

4.4

4.3

4.2

4.7

4.6

6,796

1,113

Residence-95

Esty Maison OJIMA

8,340

8,510

170

4.5

4.4

4.3

4.2

4.7

4.6

7,197

1,312

Residence-96

Prime Maison FUJIMIDAI

1,930

1,970

40

5.3

5.2

5.1

5.0

5.5

5.4

1,783

186

Residence-97

Esty Maison TSURUMAI

4,160

4,220

60

5.4

5.3

5.2

5.1

5.6

5.5

3,869

350

Residence-98

Prime Maison MORISHITA

1,830

1,870

40

4.7

4.6

4.7

4.6

4.9

4.8

1,765

104

Residence-99

Prime Maison SHINAGAWA

1,790

1,850

60

4.6

4.5

4.4

4.3

4.8

4.7

1,719

130

Residence-100 Prime Maison ODORI KOEN

2,980

3,040

60

5.2

5.1

5.0

4.9

5.4

5.3

2,726

313

Residence-101 Prime Maison MINAMI 2-JO

1,780

1,860

80

5.3

5.2

5.1

5.0

5.5

5.4

1,518

341

Residence-102 Prime Maison KAMOKAMOGAWA

1,160

1,190

30

5.3

5.2

5.1

5.0

5.5

5.4

1,006

183

Residence-103 Prime Maison CENTRAL PARK (Note 6)

2,273

2,283

10

5.4

5.3

5.2

5.1

5.5

5.4

2,314

-31

Residence-104 MAST LIFE YAHIRO

1,770

1,800

30

4.9

4.8

4.7

4.6

5.1

5.0

1,718

81

Residence-105 Prime Maison EBISU

4,070

4,170

100

4.3

4.2

4.1

4.0

4.5

4.4

3,660

509

Residence-106 Esty Maison SHIBAURA

2,780

2,780

-

4.5

4.5

4.3

4.3

4.7

4.7

2,896

-116

Residence-107 Granmast KANAZAWA NISHIIZUMI

1,050

1,050

-

5.6

5.5

5.4

5.3

5.8

5.7

1,059

-9

Residence-108 Granmast UNOMORI

771

786

15

5.6

5.5

5.4

5.3

5.8

5.7

780

5

Residence-109 Esty Maison TSUTSUJIGAOKA

909

911

2

4.9

4.8

5.0

4.9

5.1

5.0

921

-10

2,708

2,731

23

4.9

4.8

4.7

4.6

5.1

5.0

2,868

-137

Residence-111 MAST LIFE HINO

-

1,340

-

-

5.0

-

4.8

-

5.1

1,356

-16

Prime Maison YOKOHAMA
Residence-112
NIHON-ODORI

-

4,700

-

-

4.5

-

4.3

-

4.7

4,468

231

Residence-113 KOBE Women’s Student Housing

-

5,720

-

-

5.3

-

5.1

-

5.5

6,248

-528

203,833

3,083(Note 7)

4.8

4.7

4.7

4.6

5.0

4.9

183,523

20,309Residence-110 Esty Maison KOHOKU TSUNASHIMA

Residence Subtotal

189,19461

List of Fiscal Period-End Estimated Values (5)Estimated value at end of period(Million yen)
Property No.

Property Name
As of Sept. 30,
2015

As of Mar. 31,
2016
2,562

Direct capitalization rate (%)
Change(Million yen)122

Discount rate (%)

Terminal capitalization rate (%)

Balance sheet
amount(Million yen)

As of Sept. 30,
2015

As of Mar. 31,
2016

As of Sept. 30,
2015

As of Mar. 31,
2016

As of Sept. 30,
2015

As of Mar. 31,
2016

6.4

6.4

6.1
(Note 9)6.1
(Note 9)6.5

6.5

Retail-1

HAMAMATSU Plaza (Note 8)

2,440

Retail-3

RINKU HAGURAZAKI Plaza (Note 4,10)

4,010

-

-

-

-

-

-

-

-

-

-

Retail-4

b-town MINAMIAOYAMA

1,140

1,170

30

4.3

4.2

4.3

4.2

4.4

4.3

1,498

-328

Retail-5

KOJIMA × BIC CAMERA
Kamifukuoka store (Note 4)

1,140

-

-

6.0

-

5.8

-

6.2

-

-

-

Retail-8

Joy Square YUGAWARA (Note 4)

1,580

-

-

6.2

-

6.1

-

6.4

-

-

-

Retail-9

Bell Plaza Shopping Center (Note 4)

1,190

-

-

6.1

-

6.0

-

6.2

-

-

-

5.8

5.3

5.7

5.2

5.9

5.4

5,177

-1,445

4.9

4.7

4.7

4.6

5.1

4.9

188,701

18,864

Other real estate in trust （retail properties） Subtotal

11,5003,732152(Note 7)

Portfolio Total

200,694

207,565

3,235(Note 7)

3,679

Unrealized
gain/loss(Million yen)
-1,116Note 1: Amounts of less than one million yen are rounded down.
Note 2: “Period-end estimated value,” “Direct capitalization rate,” “Discount rate” and “Terminal capitalization rate” are the amount based on real estate appraisal or on real estate price survey by a real estate appraiser while “Balance sheet amount” isthe amount recorded on the balance sheet as of March 31, 2016 for assets owned at the end of the fiscal period ended March 31, 2016 (the 21st fiscal period). For details of RINKU HAGURAZAKI Plaza, please also refer to below (Note 10).
Note 3: “Direct capitalization rate,” “Discount rate” and “Terminal capitalization rate” in the residence subtotal, other real estate in trust （retail properties） subtotal and portfolio total are the simple averages of the figures for the owned properties and arerounded to the nearest first decimal place. Also, when a part of an owned asset is a leased land, such part is excluded from the basis of the calculation of the simple average.
Note 4: Four properties, namely RINKU HAGURAZAKI Plaza, KOJIMA × BIC CAMERA Kamifukuoka store, Joy Square YUGAWARA and Bell Plaza Shopping Center, were disposed on November 30, 2015 and Esty Maison IMAIKE was disposed on
January 28, 2016.
Note 5: A master lease agreement with rent guarantee is concluded with Sekiwa Real Estate Kyushu, Ltd. with regard to Prime Maison MOMOCHIHAMA. In calculating the period-end estimated value as of September 30, 2015 and March 31, 2016, theproperty’s discount rates until the expiry of the contract are both 5.1% and their discount rates after the expiry of the contract are both 5.3%. Furthermore, a master lease agreement with rent guarantee is concluded with Sekiwa Real Estate
Chubu, Ltd. with regard to Esty Maison HIGASHISHIRAKABE. In calculating the period-end estimated value as of September 30, 2015 and of March 31, 2016, the property’s discount rates until the expiry of the contract are both 5.1% and theirdiscount rates after the expiry of the contract are both 5.3%. For the sake of convenience, the above chart shows the discount rates until the expiry of the contracts.
Note 6: Part of the land of Prime Maison CENTRAL PARK (Lot: 23-32) is leased land and the value of earnings for the leased land is calculated by the DCF method, and thus no “Direct capitalization rate” or ”Terminal capitalization rate” for the leased
land are established. Therefore, “Direct capitalization rate” and “Terminal capitalization rate” in the above table only indi cate those for the residential portion. “Discount rate” of the leased land portion is calculated to be both 5.0% at the fiscal
period ended September 30, 2015 and the fiscal period ended March 31, 2016 by the DCF method.
Note 7: The residence subtotal, other real estate in trust (retail properties) subtotal and portfolio total of the “Change” column indicate the aggregate amount of changes of properties owned as of the end of the fiscal period ended September 30, 2015
(the 20th fiscal period) (excluding three properties acquired and five properties disposed in the period ended March 31, 2016 (the 21st fiscal period)).
Note 8: Hamamatsu Plaza is a commercial complex divided into Hamamatsu Plaza East area and the Hamamatsu Plaza West area, comprises a total of seven buildings, with five buildings located in Hamamatsu Plaza East area (the former Ito-Yokado
Building, the Akachan Honpo Building, the Xebio Building, the Hamapla & Frespo Building and a management building) and two buildings located in the Hamamatsu Plaza West area (the Hamamatsu West Building and the Hamamatsu PlazaSports Building (Zexis)). The Investment Corporation acquired trust beneficiary interests in real estate for these other than the Hamapla & Frespo Building and the building of the Hamamatsu Plaza Sports Building (Zexis) on July 28, 2005 andstarted operations, but a portion was disposed on March 30, 2012 and September 30, 2013. As of September 30, 2013, the Investment Corporation holds only a 49% quasi-co-ownership interest in the trust beneficiary interest in real estate for
Hamamatsu Plaza East excluding the former Ito-Yokado Building and its site (hereafter, the “Hamamatsu Plaza East Xebio Building and Other Portions”). Consequently, “Period-end appraisal value” and “Balance sheet amount ” are for the 49%
quasi-co-ownership interest of the Hamamatsu Plaza East Xebio Building and Other Portions and do not include the portion that was disposed. Furthermore, a store Ito-Yokado Co., Ltd. operated in the former Ito-Yokado Building had beenclosed on January 18, 2015.
Note 9: As for Hamapla & Frespo Building located in the Hamamatsu Plaza East indicated above (Note 8), because only the land is owned and leased by the Investment Corporation through real estate trust, appraisal value is calculated using the DCF
method and “Direct capitalization rate” and “Terminal capitalization rate” are not indicated. Furthermore, “Discount rate” is indicated in the above table for all properties except Hamapla & Frespo Building. “Discount rate” of the leased land
portion of the Hamapla & Frespo Building as of September 30, 2015 and March 31, 2016 are calculated to be 5.2% and 5.1%, respectively, using the DCF method.
Note 10: As for RINKU HAGURAZAKI Plaza, “Direct capitalization rate,” “Discount rate” and “Terminal capitalization rate” are not indicated because only the land is owned by the Investment Corporation through real estate trust and its appraisal method
differs from that of other acquired assets. Please refer to the following table for the appraisal of the property.

Property
No.

Property Name

Retail-3

RINKU HAGURAZAKI Plaza

Discount rate in the DCF method (%)
Fiscal period ended
Fiscal period ended
September 30, 2015
March 31, 2016
(the 20th FP)(the 21st FP)
5.4 / 6.0*-

* In the period ended September 30, 2015 (the 20th fiscal period), there were two buildings, on the property which areevaluation objects and the discount rate in the DCF method differs according to contract conditions and such.

62

Overview of Interest-Bearing Debt (1)Short-Termloanspayable■ Loans

As of date of document
Contract

Drawdown Date

The individual loan contract dated September 28, 2015
(September 2015 / 11 months)

October 1, 2015

The individual loan contract dated February 25, 2016
(February 2016 / 6 months)

March 1, 2016

Current portion of
long-termloans payable

SubtotalInterest Rate
(Note 2)

Fixed/Floating

Repayment Date

¥1,200 million

0.21045%

Floating

August 31, 2016

¥6,000 million

0.21045%

Floating

August 31, 2016

¥7,200 million

The individual loan contract dated February 28, 2012
(February 2012 / 5 years)

March 2, 2012

¥1,500 million

1.18975%

Fixed(Note 3)February 28, 2017

The individual loan contract dated March 5, 2012
(March 2012 / 5 years)

March 8, 2012

¥5,000 million

1.19475%

Fixed(Note 3)February 28, 2017

The individual loan contract dated February 25, 2013
(February 2013 / 4 years)

March 1, 2013

¥3,000 million

0.65475%

Fixed(Note 3)February 28, 2017

The individual loan contract dated July 3, 2015
(July 2015 / 1 year 2 months)

July 10, 2015

¥2,800 million

0.21045%

Floating

August 31, 2016

SubtotalLong-Term loans payable

Balance(Note 1)

¥12,300 million

The individual loan contract dated July 30, 2012
(July 2012 / 6 years and 7 months)

August 2, 2012

¥3,882 million

1.15475%

Fixed(Note 3)February 28, 2019

The individual loan contract dated July 30, 2012
(July 2012 / 5 years and 1 month)August 2, 2012

¥2,705 million

0.95750%

Fixed(Note 3)

August 31, 2017

The individual loan contract dated February 5, 2013
(February 2013 / 6 years and 1 month)

February 8, 2013

¥4,500 million

0.89900%

Fixed(Note 3)February 28, 2019

The individual loan contract dated February 25, 2013
(February 2013 / 7 years)

February 28, 2013

¥5,242 million

1.02225%

Fixed(Note 3)February 28, 2020

The individual loan contract dated February 25, 2013
(February 2013 / 5 years)

February 28, 2013

¥2,100 million

0.75600%

Fixed(Note 3)February 28, 2018

The individual loan contract dated August 27, 2013
(August 2013 / 7 years)

August 30, 2013

¥5,500 million

1.17200%

Fixed(Note 3)

August 31, 2020

The individual loan contract dated August 27, 2013
(August 2013 / 5 years)

August 30, 2013

¥2,500 million

0.50000%

Floating

August 31, 2018

The individual loan contract dated January 28, 2014
(January 2014 / 8 years and 1 month)January 31, 2014

¥1,800 million

1.17350%

Fixed(Note 3)February 28, 2022

The individual loan contract dated February 25, 2014
(February 2014 / 8 years)

February 28, 2014

¥4,680 million

1.11000%

Fixed(Note 3)February 28, 2022

The individual loan contract dated February 25, 2014
(February 2014 / 7 years)

February 28, 2014

¥3,900 million

0.95225%

Fixed(Note 3)February 26, 2021

The individual loan contract dated February 25, 2014
(February 2014 / 6 years)

February 28, 2014

¥1,550 million

0.79614%

Fixed(Note 3)February 28, 202063

Long-Term loans payable

Overview of Interest-Bearing Debt (2)Interest Rate
(Note 2)

Fixed/Floating

Repayment Date

¥2,100 million

0.97300%

Fixed(Note 3)February 26, 2021

August 29, 2014

¥5,400 million

0.96475%

Fixed(Note 3)

August 31, 2022

August 29, 2014

¥4,400 million

0.83600%

Fixed(Note 3)

August 31, 2021

Loan condition (ⅰ)

February 27, 2015

¥7,100 million

0.86650%

Fixed(Note 3)February 28, 2023

Loan condition (ⅱ)

February 27, 2015

¥1,000 million

0.85250%

Fixed

February 28, 2023

The individual loan contract dated February 24, 2015
(February 2015 / 7 years)

February 27, 2015

¥3,350 million

0.73975%

Fixed(Note 3)February 28, 2022

The individual loan contract dated February 24, 2015
(February 2015 / 6 years)

February 27, 2015

¥3,900 million

0.62800%

Fixed(Note 3)February 26, 2021

Contract

Drawdown Date

The individual loan contract dated March 25, 2014
(March 2014 / 7 years)

March 28, 2014

The individual loan contract dated August 26, 2014
(August 2014 / 8 years)
The individual loan contract dated August 26, 2014
(August 2014 / 7 years)

Balance(Note 1)

The individual loan contract dated February 24, 2015
(February 2015 / 8 years)

The individual loan contract dated January 26, 2016
(January 2016 / 7 years and 7 months)

Tranche A

January 29, 2016

¥1,900 million

0.68030%

Fixed(Note 3)

August 31, 2023

The individual loan contract dated January 26, 2016
(January 2016 / 7 years and 7 months)

Tranche B

January 29, 2016

¥2,200 million

0.67400%

Fixed

August 31, 2023

The individual loan contract dated March 29, 2016
(March 2016 / 7 years and 11 months)

Tranche A

April 1, 2016

¥4,750 million

0.46045%

Floating

February 29, 2024

The individual loan contract dated March 29, 2016
(March 2016 / 7 years and 11 months)

Tranche B

April 1, 2016

¥1,750 million

0.50500%

Fixed

February 29, 2024

Subtotal¥76,209 million

Total loans¥95,709 million

64

Overview of Interest-Bearing Debt (3)■ Investment Corporation Bonds
Name

Date of issuance

Balance(Note 1)

Interest Rate
(Note 2)

Fixed/Floating

Redemption DateFirst Series Unsecured Investment Corporation Bonds

February 28, 2013

¥4,000 million

0.63000%

Fixed

February 28, 2018

Second Series Unsecured Investment Corporation Bonds

February 28, 2013

¥2,000 million

1.00000%

Fixed

February 28, 2020

Third Series Unsecured Investment Corporation Bonds

February 28, 2014

¥2,500 million

0.37400%

Fixed

February 28, 2019

Fourth Series Unsecured Investment Corporation Bonds

February 28, 2014

¥3,000 million

1.06900%

Fixed

February 28, 2024

Fifth Series Unsecured Investment Corporation Bonds

August 29, 2014

¥3,000 million

0.87100%

Fixed

August 30, 2024

Total Investment Corporation Bonds

Total interest-bearing debt

¥14,500 million¥110,209 million

Note 1: Amounts are rounded down to the nearest million yen.
Note 2: Interest rates as of date of document are indicated.
Note 3: Interest rate swap agreements are concluded in order to avoid the risk of rising interest rates, and the interest rates indicated are the rates fixed with the interest rate swap agreements.
Note 4: As for above borrowings, securities are unsecured and unguaranteed.

65

Overview of Unitholders as of March 31, 2016
Major Unitholders

Diversification of Unitholders

Name / Company Nameof Investment
Investment Units Ratio
Units Owned to
Owned
Total Investment(units)Units Issued (%)

Japan Trustee Services Bank, Ltd.
(Trust Account)

258,594

25.39

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

64,467

6.33

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

54,221

5.32

Sekisui House Ltd.

39,000

3.83

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

35,145

3.45

Nomura Bank (Luxembourg) S.A

24,647

2.42

THE FUJI FIRE AND MARINE INSURANCECOMPANY, LIMITED

20,630

2.02

Financial Institutions(including securities companies)
136 (1.14%)

Other domestic firms

Foreign firms

Individuals and others

227 (1.90%)
147 (1.23%)

Mar. 31, 2016
11,958 unitholders

11,448 (95.74%)
133 (1.11%)
225 (1.88%)
120 (1.00%)

Sept. 30, 2015
11,943 unitholders

11,465 (96.00%)

138 (1.10%)
241 (1.92%)
125 (1.00%)
Mar. 31, 2015
12,532 unitholders

12,028 (95.98%)

0%

20%

40%

60%

80%

100%

Note: The above ratios are rounded to the nearest second decimal place.

DEUTSCHE BANK AG LOMDON-PB NONTREATY CLIENTS 61

20,156

1.97

The Hachijuni Bank, Ltd.

19,754

1.94

THE HOKURIKU BANK LTD.

16,0491.57

552,663

54.28

Total
Note: The above ratios are rounded down to the nearest second decimal place.

Mar. 31, 2016
1,018,110 units

651,771 units(64.02%)

121,106 units
92,283 units(11.90%)(9.06%)
152,950 units(15.02%)

Sept. 30, 2015
1,018,110 units

684,260 units(67.21%)

124,902 units
91,822 units(12.27%)(9.02%)
117,126 units(11.50%)■The status of large holdings as determined by the large share holdings reports (including
reports of changes) submitted by May 10, 2016 is as follows.
Name

Sumitomo Mitsui
Trust Bank, Limited

Mitsubishi UFJ
Financial Group, Inc.

Mizuho Trust &Banking Co., Ltd.

Total units held

114,918 units

28,195 units

62,414 units

Total percentage ofownership

11.29%

2.77%

6.13%

Submission dateAugust 31, 2015

April 4, 2016

April 22, 2016

669,049 units(65.71%)Mar. 31, 2015
1,018,110 units

0%

20%

40%

92,151 units
128,862 units(9.05%)(12.66%)
128,048 units(12.58%)
60%

80%

100%

Note: The above ratios are rounded to the nearest second decimal place.

Note: The above ratios are rounded to the nearest second decimal place.

66

Historical Investment Unit Price
Investment Unit Price and Trading Volume after Change of Sponsor(Yen)160,000

2,400

120,000

1,800

80,0001,200

Sekisui House SI Residential Investment Corporation investment unit price (left axis)

40,000600

TSE REIT Index (right axis)

0

Mar.
2010

Sept.
2010

Mar.
2011

Sept.
2011

Mar.
2012

Sept.
2012

Mar.
2013

Sept.
2013

Mar.
2014

Sept.
2014

Mar.
2015

Sept.
2015

0

Mar.
2016

（Units）
35,000
Trading volume

30,00025,00020,00015,00010,000
5,000
0
Mar.
2010

Sept.
2010

Mar.
2011

Sept.
2011

Mar.
2012

Sept.
2012

Mar.
2013

Sept.
2013

Mar.
2014

Sept.
2014

Mar.
2015

Sept.
2015

Mar.
2016

Note: As a five-for-one split of investment units was implemented on April 1, 2014, investment units have been traded at one-fifth (the ex-rights) unit price on and after March 27, 2014. In consideration of the impact of the split, the abovegraph is based on actual figures of “Investment unit price” for March 27, 2014 and earlier being divided by five and actual figures of “Trading volume” being multiplied by five.

67