Sekisui House SI Asset Management, Ltd.

Sekisui House SI
Residential Investment Corporation
Business Results for the 20th Fiscal Period
November 17, 2015

Sekisui House SI Residential Investment Corporation Business Results
for the 20th Fiscal Period from Apr.1, 2015 to Sept. 30, 20151◇ 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.
◇ This English language document is an abridged translation of the Japanese language document issued on the same day and was
prepared solely for the convenience of, and reference by, overseas investors. Sekisui House SI Residential Investment Corporation
gives no warranties as to its accuracy or completeness.

2

Contents
I. Summary of Business Results for 20th FP 2015 and Forecasts
for 21st FP

IV. Financial Activities in and after 20th FP and Current Policy

・Summary of Business Results for 20th FP

5・Forecasts for the 21st FP

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

7

・Future Distribution Policy

8・Status of 20th Fiscal Period-End Estimated Values

9

II. External Growth Results in and after 20th FP and Current Policy
・Summary of External Growth in and after 20th FP

12・Property Acquisitions Utilizing Pipeline with Sekiwa Real Estate
Companies
・Property Acquisitions Utilizing the Asset Management
Company’s Proprietary Routes

15

・Properties Assigned in the 20th FP

17

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

18

16

III. Internal Growth Results for 20th FP and Current Policy

・Summary of Financial Activities in and after 20th FP

28

・Major Initiatives in and after 20th FP

29

・Major Financial Indicators Related to Interest-Bearing Debt

30

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

33

・Examples of Environmental Certification from External Agencies

34

VI. Appendix

・Balance Sheets

36

・Statements of Income and Retained Earnings

38

・Statements of Cash Flows / Cash Distributions

39

・Summary of Selected Financial Data

40

・History of the Investment Corporation since Listing41

・Portfolio Development Policy

42

・Portfolio Map

43・Summary of Internal Growth for 20th FP

20

・Status of Portfolio

45・Residential Properties Occupancy Status by Investment Area

22

・List of Properties Owned at End of Period

47

・Residential Properties New / Renewed Contract Trends

23

・List of Fiscal Period-End Estimated Values

52

・Status of Selected Management Data on Residential Properties

24

・Overview of Interest-Bearing Debt

57

・Measures for Increasing Profitability of Residential Properties

25

・Overview of Unitholders as of September 30, 2015

61

・Occupancy Status and Tenant Trends at Retail Properties

26

・Historical Investment Unit Price

62

3

MAST LIFE YAHIRO

I. Summary of Business Results for 20th FP and Forecasts
for 21st FP

4

Summary of Business Results for 20th FP
Actual cash distributionsfor 20th Fiscal Period

 Increase of 0.1% from forecast for 20th fiscal period[Covered the decrease of lease business revenues with gain on sale of b-toss IKEBUKURO, etc.]

 Decrease of 2.9% from result for 19th fiscal period¥2,122 per unit

[Absence of gain on sale of b-town JINGUMAE II assigned in the 19th FP]

Comparison with Forecasts
Forecast for fiscal period
ended Sept. 30, 2015
(announced May 18, 2015)

Fiscal period
ended Sept. 30, 2015(183 days)(actual)◇Factors for differences between actual results and forecasts
for the fiscal period ended Sept. 30, 2015

Difference・ Operating income

Operating revenue¥6,411 million¥6,411 million¥0 million

0.0%Operating income¥2,730 million¥2,743 million¥13 million

0.5%

Ordinary income¥2,194 million¥2,211 million¥16 million

0.8%

Net income¥2,192 million¥2,209 million¥17 million

0.8%¥34 million¥49 million¥15 million

45.4%¥2,120¥2,122¥2

0.1%

Provision for reserve for
reduction entry
Cash distributions per unit

Operating revenue
Decrease in rent revenue
Decrease in other lease business revenue
Increase in gain on sale of real estate property:::-¥4 million-¥18 million+¥23 million

Decrease in expenses related to lease business :Increase in other business expenses:-¥16 million+¥3 million

Operating expense

・ Ordinary income
Increase in non-operating revenue
Decrease in non-operating expenses::+¥0 million-¥3 million

Comparison with Previous Fiscal Period
Fiscal period
ended Mar. 31, 2015
(182 days)(actual)Fiscal period
ended Sept. 30, 2015(183 days)(actual)◇Factors for period-on-period changes to actual results forthe fiscal period ended Sept. 30, 2015

Change・ Operating income

Operating revenue¥6,286 million¥6,411 million¥124 million

2.0%

Operating income¥2,814 million¥2,743 million-¥70 million-2.5%

Ordinary income¥2,305 million¥2,211 million-¥93 million-4.1%

Net income¥2,302 million¥2,209 million-¥92 million-4.0%¥77 million¥49 million-¥28 million-36.6%¥2,185¥2,122

-¥63

-2.9%

Provision for reserve for
reduction entry
Cash distributions per unit

Operating revenue
Increase in rent revenue
Decrease in other lease business revenue
Decrease in gain on sale of real estate property: +¥230 million: -¥34 million: -¥71 million

Operating expense
Increase in expenses related to lease business
Increase in other business expenses: +¥140 million: +¥55 million

・ Ordinary income
Increase in non-operating revenue
Increase in non-operating expenses::+¥2 million+¥25 million

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.

5Forecasts for the 21st FP
Forecast cash distribution
for the 21st fiscal period

Decrease of 0.1% from result for 20th fiscal period
Absence of gain on sale and decrease in lease business profit for assigned assets are expected to becovered by the contribution of newly acquired properties to earnings over full period, etc.

¥2,120 per unit
Comparison with Forecasts
Fiscal Period
ended Sept. 30, 2015(183 days)(actual)Forecast for Fiscal Period
ending Mar. 31, 2016(183 days)◇Factors for period-on-period changes to forecasts for the
fiscal period ending March 31, 2016

Change・ Operating income

Operating revenue¥6,411 million¥6,458 million¥46 million

0.7%

Operating income¥2,743 million¥2,701 million-¥42 million-1.5%

Ordinary income¥2,211 million¥2,160 million-¥50 million-2.3%

Net income¥2,209 million¥2,158 million-¥51 million-2.3%¥49 million‒-¥49 million-100%¥2,122¥2,120-¥2-0.1%

Provision for reserve for
reduction entry
Cash distributions per unit

Operating revenue
Increase in rent revenue
Increase in other lease business revenue
Decrease in gain on sale of real estate property:::+¥92 million+¥35 million-¥81 million::+¥78 million+¥10 million::-¥2 million+¥5 million

Operating expense
Increase in expenses related to lease business
Increase in other business expenses

・ Ordinary income
Decrease in non-operating revenue
Increase in non-operating expenses[Assumptions of forecast for the fiscal period ending March 31, 2016]◆ Assets under management: 111 properties owned as of the date of this document◆ Average occupancy rate for the fiscal period: Residence 95.9%, Other real estate in trust (retail properties) 100%, Entire Portfolio 96.6%◆ Administration service fees: Approx. ¥602 million◆ Fixed property taxes, etc. that will be recorded as expenses related to lease business: Approx. ¥374 million◆ Depreciation: Approx. ¥1,448 million◆ Interest expenses, borrowing related expenses, etc.: Approx. ¥519 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
Note 1: Money amounts less than the indicated denomination are rounded down.
Note 2: The above figures are calculated based upon certain assumptions as of November 16, 2015. Actual operating revenue, operating income, ordinary income, net income and cash distributions per unit may differ as a result of subsequent acquisitions
or assignments of real estate, trends in real estate markets, changes in the operating environment or other conditions affecting the Investment Corporation. The above forecasts are not intended to be guarantees of business results or cash
distributions.

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

Impact on
cash distributions(1) Absence of gain on sale from assignment of part of RINKU HAGURAZAKI Plaza in 20th FP (excluding internal reserve (¥36 million))-¥21 million-¥21 /unit(2) Decrease in lease business profit from assignment of part of RINKU HAGURAZAKI Plaza in 20th FP-¥3 million-¥3 /unit(3) Absence of gain on sale from assignment of b-toss IKEBUKURO in 20th FP (excluding internal reserve (¥13 million)-¥10 million-¥10 /unit(4) Decrease in lease business profit from assignment of b-toss IKEBUKURO in 20th FP-¥10 million-¥10 /unit(5) Increase in lease business profit through full-period operation of properties acquired in 20th FP(Granmast KANAZAWA NISHIIZUMI, Granmast UNOMORI, Esty Maison TSUTSUJIGAOKA and Esty Maison KOHOKU TSUNASHIMA)+¥39 million+¥38 /unit(6) Increase in lease business profit through acquisition of new property (MAST LIFE HINO) in 21st FP+¥26 million+¥25 /unit(7) Decrease in lease business profit from other existing owned properties (106 properties)-¥2 million-¥2 /unit(8) Increase in general management fees, non-operating expenses, etc. and other factors-¥19 million-¥19 /unit

Factors of change

Absence of gain on salefrom assignment of b-toss
IKEBUKURO

Increase in lease businessprofit through full-period
operation of Granmast
KANAZAWA NISHIIZUMI,
Granmast UNOMORI, Esty
Maison TSUTSUJIGAOKA
and Esty Maison KOHOKUTSUNASHIMA

(2)

-¥10

+¥38

-¥3

(3)

(yen)

2,300
Absence of gain on sale fromassignment of part of
RINKU HAGURAZAKI Plaza

2,200

-¥21
2,100
(1)

Decrease in lease businessprofit from assignment of partof RINKU HAGURAZAKI Plaza

2,000
1,900

Actual cash
distribution for
20th Fiscal Period

1,800
1,700

¥2,122 per unit
Forecast cash
distribution for
20th Fiscal Period

(4)
-¥10

Decrease in leasebusiness profit fromassignment of b-toss
IKEBUKURO

Decrease in leasebusiness profit from otherexisting owned properties

(6)

-¥2

(7)
(5)

+¥25
Increase in leasebusiness profit throughacquisition of MAST
LIFE HINO(8)-¥19
Increase in generalmanagement fees, nonoperating expenses,
etc.

Forecast cash
distribution for21st Fiscal Period¥2,120 per unit

1,600 ¥2,120 per unit
1,500

7

Future Distribution Policy
20th fiscal period
ended September 30, 2015

21st fiscal period
ending March 31, 2016 and Onward

Promoted strengthening of the profit base through theassignment of retail properties and enhancement of theresidential portfolio, securing a stable distribution level• Forecast cash distribution per unit for 21st FP maintained at the same level as before, covering
the absence of gain on sale of retail facilities with the acquisition of new properties• Aim to increase the stability of the cash distribution level through the below measures going
forward as well

Changes in Cash Distribution per Unit
¥2,212¥1,958¥2,009¥2,185¥2,131¥2,122

From medium- to long-term
perspective, aim for further
increase while securing a stable
cash distribution level¥2,120(Forecast)

Accumulated stable cash distribution results with thedevelopment of phase 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
fiscal periods ended March 2014 or before are indicated as theamounts arrived at by dividing the actual amount of each period by five,
taking into consideration the impact of the split of investment units.

17th FP(Mar. 2014)

18th FP(Sept. 2014)

19th FP(Mar. 2015)

20th FP(Sept. 2015)

21st FP(Mar. 2016)

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 sale of properties
which utilized special measures concerning
taxation for advance acquisition of land and such

¥13.9 billion (estimate)¥2.8 billion per annum (estimate)

Utilize in property acquisitions to maintain and increase the cash
distribution level¥127 million in total

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

Note : “Free Cash Flow” is calculated based on estimated annual depreciation of 111 properties scheduled to be under management in the 21st fiscal period ending March 31, 2016.

8

Status of 20th Fiscal Period-End Estimated Values
Unrealized Gain/Loss and NAV per Unit in the Entire Portfolio(million yen)

(yen)
Unrealized gain / loss (left axis)

15,000150,000

NAV per Unit (right axis)

12,500¥87,444¥82,555

10,000¥92,880¥97,222¥101,898

125,000

100,000

7,500

75,0005,000

50,0002,500

25,000-¥2,413 million

00+¥1,488 million+¥5,947 million+¥9,980 million+¥14,691 million

End of 16th FP(Sept. 30, 2013)

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)

Appraisal value, etc.

¥136,094 million¥149,737 million¥173,301 million¥194,662 million¥200,694 million

Period-end book value¥138,507 million¥148,249 million¥167,353 million¥184,681 million¥186,002 million

Unrealized gain/loss-¥2,413 million¥1,488 million¥5,947 million¥9,980 million¥14,691 million

-1.7%

+1.0%

+3.6%

+5.4%

+7.9%

-2,500

Unrealized gain/loss ratio-25,000

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 values, etc. and dividing the obtained amount with the number of investment
units issued as of the end of each fiscal period.

Retail properties

Residences

Status by Asset Class
End of 19th FP

End of 20th FP

Appraisal value, etc.

¥180,613 million¥189,194 million

Period-end book value¥168,486 million¥172,889 million

Unrealized gain / loss+¥12,126 million+¥16,304 million

7.2%

9.4%

Appraisal value, etc.

¥14,049 million¥11,500 million

Period-end book value¥16,195 million¥13,113 million

Unrealized gain / loss-¥2,146 million-¥1,612 million-13.3%-12.3%

Unrealized gain / loss ratio

Unrealized gain / loss ratio

Major factors in the change of unrealized gain / loss ratio
Unrealized gain / loss ratio increased 2.2 points
 Appraisal values, etc. increased at 91 out of 100 properties due to decrease of cap rate, etc.
(Increased at 91 properties, maintained at 9 properties and decreased at 0 property) Acquired new properties (4 properties) at price discounted from appraisal value during the 20th FP

Unrealized gain / loss ratio improved 1.0 points
 Appraisal values, etc. increased at 5 out of 6 properties due to decrease of cap rate, etc.
(Increased at 5 properties, maintained at 1 property and decreased at 0 property)
 Unrealized loss decreased at the end of the 19th FP with the assignment of b-toss IKEBUKURO
which had unrealized loss

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

9

Memo

10

Prime Maison EBISU

II. External Growth Results in and after 20th FP and Current
Policy11

Summary of External Growth in and after 20th FP (1)Asset size of the portfolio

Residential properties among the left

Properties acquired in and after 20th FP(all residential properties)¥192.3 billion / 111 properties¥178.8 billion / 105 properties¥6.5 billion / 5 properties(as of date of document)(as of date of document)

properties acquired from the
beginning of 20th FP to the date of
document

Properties assigned in 20th FP(all retail properties)¥3.0 billion / 2 properties<Including sale of part of a property>

properties sold from the beginningof 20th FP to the date of document

Note : Amounts in “Asset size of the portfolio”, “Residential properties among the left”, “Properties acquired in and after 20th FP” and “Properties assigned in 20th FP” are indicated based on the acquisition price.

Promote external growth geared around property pipeline with Sekisui House Group• Acquired 2 residential properties through the property pipeline with Sekiwa Real Estate Chubu (total acquisition price: ¥1.75 billion)

20th FP• Acquired 2 residential properties through the Asset Management Company’s proprietary routes (total acquisition price: ¥3.55 billion)

20th FP• Acquired 1 residential property through Sekiwa Real Estate’s property pipeline (acquisition price: ¥1.29 billion)

21st FP

Steadily promote assignments of retail properties which aim is to strengthen the portfolio's stability• Assigned part of RINKU HAGURAZAKI Plaza (section leased to Kojima Co., Ltd.)(gain on sale: ¥57 million Of which ¥36 million was internally reserved, the maximum amount in special measures concerning taxation)

20th FP• Assigned b-toss IKEBUKURO(gain on sale: ¥23 million Of which ¥13 million was internally reserved, the maximum amount in special measures concerning taxation)

20th FP

Current
policy• In addition to gearing around the property pipeline with Sekisui House Group, utilize the proprietary routes of
the Asset Management Company to promote continued acquisitions of residential properties with anawareness of reasonable acquisition yields and aim to achieve an asset size of ¥200 billion at an early stage• Given the booming real estate transaction market, the assignment of existing retail properties will beconsidered following the assignment of existing retail properties in the 19th and 20th FPs
12

Summary of External Growth in and after 20th FP (2)20th Fiscal Period
Ended September 30, 2015

21st Fiscal PeriodEnding March 31, 2016 and Onward
Acquired MAST LIFE HINO

Residences

Acquired Granmast KANAZAWA NISHIIZUMI
and one other property+¥2.68 billion¥178.8 billion¥177.5 billion+¥1.29 billion+¥0.87 billion¥172.2 billion+¥1.75 billion
Acquired Esty Maison KOHOKU TSUNASHIMA
Acquired Esty Maison TSUTSUJIGAOKA

Rate ofresidential properties

Rate ofresidential properties

Rate ofresidential properties

91.26%

92.96%

93.01%

Retail properties

End of 19th FP
2015年3月期末(Mar.
31, 2015)（第19期末）2015.4.2
Apr. 2,2015

Apr. 28,2015

2015.5.14
May 14,2015-¥1.07 billion

2015.7.10
July
10,
2015

June 12,2015-¥1.98 billion

End of 20th FP
2015年9月期末(Sept.
30, 2015)（第20期末）2015.10.1
Oct. 1,2015

Asof date of
本書の日付
document
現在¥13.4 billion¥13.4 billion

Rate ofretail properties

Rate ofretail properties

Rate ofretail properties

8.74%

7.03%

6.98%

Asset size

Asset size

¥191.0 billion¥192.3 billion

LTV

LTV

51.5%

51.8%

¥16.4 billion

Asset size

¥188.7 billion
LTV

51.1%

Assigned part of
RINKU HAGURAZAKI Plaza

Assignedb-toss IKEBUKURO

Assigning retail properties while steadily increasing
the asset size through the acquisition of residential
properties
Implementing conservative LTV control such as byutilizing proceeds from the assignments of retailproperties to make early repayments

Strengthening the stability of the profit baseby enhancing the residential portfolio

19th Fiscal Period
Ended March 31, 2015

Continue to aim for an
asset size of ¥200 billion

Utilize approx. ¥13.9 billionof borrowing capacity at
LTV up to 55%

13

Summary of External Growth in and after 20th FP (3)Status of Residential Portfolio
Diversification statusby property age(based on acquisition price)

Diversification status by area(based on acquisition price)

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

Less than 5 years
10 years or more

Major Cities
Nationwide

Greater Tokyo /Major Urban Areas

27.4%

Greater Tokyo

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

72.6%

69.5%
Of these,Tokyo’s 23 wards

64.1%

Greater Tokyo /Other Urban Areas

Diversification status by floor area(based on leasable residential units)More than 10 minutes

9.9%50m2 to lessthan 100m2

9.8%

22.0%

100m2 or more

0.7%

25.3%

More than 5 minutes
Within 3 minutes
to within 10 minutes Within 10
32.4%
27.9% Minute walk
30m2 to lessyears to8.7 years 5less
90.2%
than 50m2
than
27.4%
10 yearsMore than 3 minutes
68.1%
to within 5 minutes
Averageproperty age

3.1%

Average area
per unit
Less than 30m2

39.2㎡ 46.6%

29.9%
100m2 or more
10 years or more Less than 5 years

Major Cities
Nationwide

Greater Tokyo /Major Urban Areas

27.6%

Greater Tokyo

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

72.4%

69.0%
Of these,Tokyo’s 23 wards

62.1%

23.3% 9.6%

10.0%

Within 3 minutes
More than 5 minutes Within 10
to within 10 minutes Minute walk 31.5%

Averageproperty age

years to8.8 years 5less
than

29.6%

More than 3 minutes
to within 5 minutes

67.1%

Less than 5 years

10 years or more
Greater Tokyo /23.2% 9.6%
Major Urban Areas
Average
27.4%
68.5%
Greater Tokyo
property age
Of these,

Major Cities
Nationwide

72.6%

0.7%
Less than 30m2

45.9%

27.1%

Average area
per unit

39.6㎡

29.0%

3.5%

As of dateof document

26.3%

30m2 to lessthan 50m2

90.0%

10 years

Greater Tokyo /Other Urban Areas

50m2 to lessthan 100m2

More than 10 minutes

Tokyo’s 23 wards

Greater Tokyo /Other Urban Areas

61.7%

9.9%

100m2 or more

0.7%

26.3%

Within 3 minutes
More than 5 minutes Within 10 32.0%
to within 10 minutes Minute walk
29.4%
30m2 to less
8.8 years 5 years to
90.1%
than 50m2
less than
27.1%
10 yearsMore than 3 minutes
67.3%
to within 5 minutes

Average area
per unit
Less than 30m2

39.6㎡

45.9%

28.8%

4.2%
Primarily Greater Tokyo

50m2 to lessthan 100m2

More than 10 minutes

Primarily new properties

Primarily properties near stations

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 day 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 and is rounded down to the nearest first decimal place. “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 and is rounded down to the nearest first decimal place.

14

Property Acquisitions Utilizing the Pipeline with Sekiwa Real Estate Companies
Acquired 3 residential properties totaling ¥ 3.04 billion from Sekiwa Real Estate companies with their nationwide branch network
A total of 8 residential properties totaling ¥12.2 billion have been acquired so far
MAST LIFE HINO

Granmast UNOMORI

Granmast KANAZAWA NISHIIZUMIGreater Tokyo / Other Urban
Areas

Property age
5.8 years

Acquired in
the 21th FP

Other Major Cities
Nationwide

Property age
8.1 years

Acquired in
the 20th FP

Other Major Cities
Nationwide

Property age
6.6 years

Acquired in
the 20th FP

Acquisition price

Acquisition price

Acquisition price¥1,290 million¥1,005 million¥745 million

Appraisal value

Appraisal value

Appraisal value¥1,320 million¥1,010 million¥757 million

Appraisal NOI yield

Appraisal NOI yield

Appraisal NOI yield

5.5%

6.2%

6.3%

Occupancy rate at end of
the month just before the acquisition

Period-end occupancy rate

Period-end occupancy rate

100%

100%

100%

(End of September 2015)(Rent guarantee type)(Rent guarantee type)• Rental apartment planned and developed by Sekiwa
Real Estate and comprised of single and compact
type units with home security in each unit andconcierge services• Rental apartment planned and developed by Sekiwa
Real Estate Chubu and comprised mainly of highquality family type units with concierge services• Rental apartment comprised of single type units
which was owned by Sekiwa Real Estate Chubu inrecognition of its value and which has strong demand
from companies as well

• Located near Hino Station, transport convenience tothe city center is excellent
Location

Shinmachi, Hino-shi, Tokyo• Located in Kanazawa-shi, Ishikawa where further
development is expected with the opening of JR
Hokuriku Shinkansen
Location

Nishiizumi, Kanazawa-shi, Ishikawa• Located in Yokkaichi-shi, Mie, a leading city in the
Chukyo Industrial Area
Location

Unomori, Yokkaichi-shi, Mie

Nearest station

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

Nearest station

Approx. 3.7km from Kanazawa Station on JR
Hokuriku Shinkansen, etc.
Approx. 8-minute walk from Nishi-Izumi
Station on Hokuriku Railroad Ishikawa Line

Structure/
number of floors

RC, 12F/B1F

Structure/
number of floors

RC, 14F

Structure/
number of floors

RC, 8F

Completion date

January 13, 2010

Completion date

September 14, 2007

Completion date

April 13, 2009

Nearest station

Approx. 7-minute walk from Kintetsu
Yokkaichi Station on Kintetsu Nagoya Line

Leasable units

72 units (and 1 shop section)

Leasable units

60 units

Leasable units

76 units

Acquisition date

October 1, 2015

Acquisition date

April 2, 2015

Acquisition date

April 2, 2015

Acquisition route

Sekiwa Real Estate

Acquisition route

Sekiwa Real Estate Chubu

Acquisition route

Sekiwa Real Estate Chubu

Leasing method

Master lease agreement, pass-through type

Leasing method

Master lease agreement with rent guarantee

Leasing method

Master lease agreement with rent guarantee

Note : The above appraisal values are those on the appraisal reports by real estate appraisers as of the acquisition of the properti es 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. Furthermore, the direct capitalization method in the concerned appraisal report for Granmast KANAZAWA NISHIIZUMI and Granmast UNOMORI are notassuming lease agreements with rent guarantee. 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.

15

Property Acquisitions Utilizing the Asset Management Company’s Proprietary Routes
Acquired 2 residential properties utilizing the proprietary routes of the Asset Management Company, being aware of appropriate acquisition
yields in the booming real estate transaction market as well
Esty Maison KOHOKU TSUNASHIMAGreater Tokyo / Major Urban Areas

Esty Maison TSUTSUJIGAOKA

Property age 13.6 years

Acquired in the 20th FP

Rental apartment comprised of three buildings, the “East” for families, the “West” for
DINKs couples and families and the “Annex” for single persons, with excellent daily
convenience and transportation convenience to central Yokohama

Greater Tokyo / Other Urban Areas

Property age 13.7 years

Acquired in the 20th FP

Rental apartment comprising of family type units with a living environment surroundedby nature; the property management company was changed to Sekiwa Real Estate
after acquisition and the occupancy rate which was 77.9% at the point of acquisition
increased to 92.3% by the end of September

Acquisition priceAppraisal value

Appraisal
NOI Yield

Period-end
occupancy rate

Acquisition priceAppraisal value

Appraisal
NOI Yield

Period-end
occupancy rate

¥2,680
million¥2,708 million

5.4%

100%
(Rent guarantee type)¥871 million¥908 million

5.6%

92.3%

Location

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

Location

Nishitsutsujigaoka, Chofu-shi, Tokyo

Nearest station

Approx. 10-minute walk from Nippa Station on the Yokohama Municipal Subway
Blue Line

Nearest station

Approx. 11-minute walk from Tsutsujigaoka Station on the Keio Line

Structure/
number of floors

RC, 5F (Note)

Structure/
number of floors

RC, 5F/B1F

Completion date

March 11, 2002, etc. (Note)

Completion date

March 9, 2002

Leasable units

149 units

Leasable units

28 units

Acquisition dateJuly 10, 2015

Acquisition date

May 14, 2015

Acquisition route

Asset Management Company’s proprietary route

Acquisition route

Asset Management Company’s proprietary route

Leasing method

Master lease agreement with rent guarantee

Leasing method

Master lease agreement, pass-through type

Note: Esty Maison KOHOKU TSUNASHIMA is comprised of 3 buildings, the “East,” the “West” and the “Annex.” The structure and number of floors are the same for all 3 buildings. The completion dates of the buildings are March 11, 2002, October 23,
2002 and September 19, 2002 respectively.

16

Properties Assigned in the 20th FP
b–toss IKEBUKURO
Retail Properties

Part of RINKU HAGURAZAKI Plaza (leased to Kojima Co., Ltd.)Greater Tokyo / Major Urban Areas

Assigned in the 20th FP

Retail Properties

Major Cities Nationwide

Assigned in the 20th FP

Continuous ownership part(leased to Kohnan Shoji Co., Ltd.)
Continuous ownership part(leased to AEON TOWN Co., Ltd.)

Continuous ownership parts
Acquisition price¥3,624 million

Book value¥3,653 million

Appraisal value¥3,960 million

Assigned part(leased to Kojima Co., Ltd.)

Assigned the property whose occupancy rate had decreased to 88.8% by the date ofassignment at a price exceeding both the book value and appraisal value

Assigned to avoid the risk of decreasing profitability that could materialize given theclosing of Kojima NEW Rinku Hagurazaki Store managed by the lessee

Assignment priceAppraisal value

Book value

Gain on sale

Assignment priceAppraisal value

Book value

Gain on sale

¥2,050 million¥1,720 million¥1,968 million¥23 million¥1,150 million¥1,150 million¥1,081 million¥57 million

Location

Nishiikebukuro, Toshima-ku, Tokyo

Location

Gashoji, Tajiri-cho, Sennan-gun, Osaka, etc.

Buyer

Domestic general business company

Buyer

Domestic general business company

Assigned date
Actual NOI yield(before depreciation)

June 12, 2015

Assigned date

4.4%
(actual results for 19th FP (annualized) / acquisition price basis)

Recorded gain on sale of ¥23 million for the 20th FP
and internally reserved part (¥13 million) as
reserves for reduction entry

Actual NOI yield(before depreciation)

Internal reserve from gain on sale
¥49 million in total

April 28, 20156.2%
(actual results for 19th FP (annualized) / acquisition price basis)

Recorded gain on sale of ¥57 million for the 20th FP
and internally reserved part (¥36 million) as
reserves for reduction entry

Together with 19th FP’s reserve for reduction entry of ¥77 million, total internal reserves is ¥127 million
Utilize internal reserves for measures that will contribute to securing a stable cash distribution level in the future and such
Note: “Appraisal value” above are appraisal values on the appraisal reports by real estate appraisers valued as of the end of March 2015. Also, “book value” are figures as of the date of assignment and “gain on sale” are figures after deduction of
assignment costs, etc., with amounts of less than one million yen rounded down.

17Residential Properties Planned, Developed or Owned by Sekisui House Group
Supply information

SponsorDevelopment Department

Demand information0

Sekisui House
SI Asset Management

Exchange of opinions

Sekisui House
Sekisui House holds
property planningmeetings periodicallyAssetmanagementcompany

Real Estate Investment Department

All 12 properties are in Greater Tokyo / Major Urban Areas (of these, 11 properties are 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

5 properties 577 units in total

4 properties 456 units in total

3 properties

Sekisui House plansand developments“Prime Maison” basedon the property
planning meetings

AllinTokyo’s
23 wards
Prime Maison
YOKOHAMA NIHONODORIPrime Maison
SHIBUYA

Prime Maison
HATSUDAI

Prime Maison
SHIROKANE TAKANAWA(Yokohama-shi, Kanagawa)(Shibuya-ku, Tokyo)(Shibuya-ku, Tokyo)(Minato-ku, Tokyo)

137 units in total

70 units in total

106 units in total

147 units in total<Completed in June 2014> <Completed in July 2014> <Completed in Dec. 2014> <Completed in June 2015>

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

Prime Maison
GOTENYAMA WEST

(Tentative name)Prime Maison
SHIROKANEDAITOWER(Tentative name)Prime Maison
OTSUKA(Shinagawa-ku, Tokyo)(Toshima-ku, Tokyo)

220 units in total

145 units in total

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

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

26 units in total

27 units in total<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 the design
documents and may differ from the actual buildings. Furthermore, “total units” includes units that are not for residential purpose.

18Granmast KANAZAWA NISHIIZUMIIII. Internal Growth Results for 20th FP andCurrent Policy

19Summary of Internal Growth for 20th FP (1)Average occupancy rateduring the fiscal period

NOI Yields

Change in rent in new contracts(Monthly)

Change in rent in contract renewals(Monthly)

Entire portfolio

Entire portfolio

Residential properties only

Residential properties only

96.2%

5.0%

+¥417 thousand+¥125 thousand(Leasable floor area basis)(Acquisition price basis)(against previous rent)(against previous rent)Management Status of Residential Properties• While occupancy rates were stagnant at some properties, the average occupancy rate during the period was 95.5%, securing a certain level• Change in rent for new contracts turned to increase (+ 0.4%) and change in rent from contract renewals was an increase for the second consecutive
period (+ 0.1%)• Key money acquisition rate was maintained at a certain level even though it was lower than the previous period given the weaker occupancy rate, while
the renewal rate continued to be maintained at the 80% level

Management Status of Other Real Estate in Trust (Retail Properties)• As a result of working on stable operation, the average occupancy rate during the period for all retail properties was maintained at a high level of 99.9%• At Bell Plaza Shopping Center, concluded a re-contracting with a tenant whose contract period expired with higher rent than the original contract

Current
policy• Implement agile leasing strategies in line with the situations of each property and individual units, aiming foran average occupancy rate during the period at the same level as the same period the in previous year which
was excellent• Aim to further increase profitability by taking steps to maintain and increase actual increase in rents for new
contracts and contract renewals, bring back the key money acquisition rate to the 50% level and devise othermethods to increase revenues
20Summary of Internal Growth for 20th FP (2)Occupancy Rates and NOI Yields
Residential properties

Other real estate in trust (retail properties)

Total

100%

97.5%

97.1%

97.4%

97.1%

96.7%

95%

90%

85%

80%

75%
Sept.
Oct.
2013
End of16th FP

Nov.

Dec.

Jan.
2014

Feb.

Mar.

Apr.

May

June

July

Aug.

End of17th FP

Sept.

Oct.

Nov.

Dec.

Jan.
2015

End of18th FPAs of end of the fiscal
periodAverage for the fiscal
period

Mar.

Apr.

May

June

July

End of19th FP

Aug.

Sept.
End of20th FPNOI Yields

Occupancy Rates
Fiscal period ended March 31, 2015
(19th FP)Feb.

Fiscal period ended September 30, 2015
(20th FP)As of end of the fiscal
periodAverage for the fiscal
periodFiscal period ended
March 31, 2015
(19th FP)

Fiscal period ended
September 30, 2015
(20th FP)

Residential properties

96.7%

96.2%

96.0%

95.5%

5.2%

5.0%

Other real estate in trust(retail properties)

100.0%

100.0%

100.0%

99.9%

5.3%

5.0%

Total

97.4%

97.0%

96.7%

96.2%

5.2%

5.0%

Note 1: “Occupancy Rates” in the above chart indicate the rate of total leased area to the total leasable area for the properties in each category held by the Investment Corporation as of the end of each month from September 2013 to September 2015.
Note 2: Figures for the “average for the fiscal period” in the above table indicate the average of occupancy rates as of the end of each month during the fiscal period ended March 31, 2015 (19th fiscal period) and the fiscal period ended September 30,
2015 (20th fiscal period).
Note 3: The “NOI yields” in the above table are ratios obtained by dividing the annualized leasing NOI of assets pertaining to each section as well as all assets owned by the Investment Corporation in the fiscal period ended March 31, 2015 (19th fiscal
period) and the fiscal period ended September 30, 2015 (20th fiscal period) by the total acquisition price.
Note 4: All of the figures above are rounded to the nearest first decimal place.

21

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

Greater Tokyo / Other Urban Areas

Major Cities Nationwide

Maintaining occupancy at a stable level exceeding thesame period in the previous year centering on theproperties in Tokyo’s 23 wards

Even as occupancy decreased with the impact of newly
incorporated properties and cancellations of officesections of some properties, occupancy recovered by theend of the period

While occupancy was weak at the beginning of the periodwith cancellations at some properties, occupancy
recovered gradually towards the end of the period

Average occupancy rate during the fiscal period:

Average occupancy rate during the fiscal period:

Average occupancy rate during the fiscal period:

95.7% (+0.2% year-on-year)

92.9% (-2.1% year-on-year)

95.4% (-0.6% year-on-year)

Number of properties:

65 properties

Total leasable area:

167,014.23m2

Number of leasable units:

4,898 units

Area data

Area data

Number of properties:

5 properties

Total leasable area:

15,835.59m2

Number of leasable units:

347 units

Number of properties:

34 properties

Total leasable area:

148,551.58m2

Number of leasable units:

2,923 units

Area data

Even as occupancy decreased at some properties in the first half of the 20th FP, average occupancy rate during the period secured
95% or more for the entire portfolio through agile leasing

Change in Occupancy Rates by Investment Area
Greater Tokyo/Major Urban Areas

Greater Tokyo / Other Urban Areas

Major Cities Nationwide

Residences overall

100%
97.5%

96.3%

96.6%

96.1%
95%

95.3%

95.9%

96.7%

96.7%

94.6%

96.4%
96.0%

96.7%

95.5%

96.6%

95.4%

97.7%

97.5%

96.8%

22

94.1%

93.8%
90%
Average occupancy rate
： 95.7%during the 17th FP

Average occupancy rate
： 95.7%during the 18th FP

Average occupancy rate
： 96.2%during the 19th FP

Average occupancy rate
： 95.5%during the 20th FP

85%
End of Sept. 2013(End of 16th FP)

End of Dec.

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

End of June

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

End of Dec.

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

End of June

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

Note: “Change in occupancy rates by investment area” shows the month-end occupancy rates 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. Also,
the “average occupancy rates during the periods” are the average occupancy rates as of the end of each month during each peri od. Furthermore, “area data” shows figures for properties owned as of the end of the 20th FP (ended September 30, 2015).

22

Residential Properties New / Renewed Contract Trends
Change in rent made a turnaround to increase for new contracts and was an increase for the second consecutive
period for contract renewals
Rent Trends in New Contracts

Rent Trends in Contract Renewals
16th FP

17th FP

18th FP

19th FP

20th FP

No. of renew contract

641

923

972

1,136

1,013

¥1,744thousand(316)

Total increase
in rent(number of cases)

‒

‒

¥20
thousand(6)¥224
thousand(77)¥130
thousand(54)-¥1,431-¥1,326

thousand(253)

thousand(228)

Total decrease
in rent(number of cases)‒-¥31
thousand(19)-¥38
thousand
(5)

-¥2

-¥5

thousand(1)

thousand(2)¥417
thousand

Change in rent (net)‒-¥31
thousand-¥17
thousand¥222
Thousand¥125
Thousand

0.4%

Rate of change in rent
against previous rent

‒

-0.0%

-0.0%

0.2%

0.1%

16th FP

17th FP

18th FP

19th FP

20th FP

No. of new contract

588

704

699

834

816

Total increase
in rent(number of cases)¥678
thousand
(193)

¥736
thousand(190)¥1,101
thousand(225)¥1,357thousand(314)

Total decrease
in rent(number of cases)-¥1,337
thousand(186)-¥2,265
thousand(302)-¥1,845thousand(244)

Change in rent (net)-¥659
thousand-¥1,528
thousand-¥744
thousand-¥73
thousandRate of change in rent
against previous rent

-0.9%

-1.8%

-0.8%

-0.1%

Ratio of decrease in rent

Ratio of no rent change

Ratio of increase in rent

100%
31.6%
42.9%

75%

50%

Ratio of decrease in rent

Ratio of no rent change

Ratio of increase in rent

100%

35.5%

34.9%

27.9%

30.3%

32.9%

33.3%

32.0%

50%

25%
38.7%

32.8%

27.0%

32.2%

37.6%

0.2%

16th FP

17th FP

18th FP

19th FP

100%

97.9%

98.9%

93.1%

94.5%

6.8%

5.3%

19th FP

20th FP

25%
0.6%

0%
20th FP

Rent Trends in New Contracts by Investment Area
No. of new contracts

0.1%

75%

30.1%

20th FP

0.5%

2.1%

Change in rent (net)

0%
16th FP

17th FP

18th FP

Rent Trends in Contract Renewals by Investment Area

Rate of change in rent

20th FP

No. of renewed contracts

Change in rent (net)Rate of change in rent

Greater Tokyo /Major Urban Areas

504¥268 thousand

0.4%

Greater Tokyo /Major Urban Areas

555¥129 thousand

0.2%

Greater Tokyo /Other Urban Areas

36-¥28 thousand-0.7%

Greater Tokyo /Other Urban Areas

46-¥4 thousand-0.1%

Major Cities Nationwide

276¥177 thousand

0.7%

Major Cities Nationwide

412¥0 thousand0%

Note: The “rate of change in rent against previous rent” and “rate of change in rent” are the ratio of the total change in rent for each period for new or renewed contracts against the total of previous rent. Both of these ratios are rounded to the nearest fi rst
decimal place.

23

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 20th FP

Based on residential properties owned as of the end of the 19th FP
End of fiscal period
ended March 2015(end of 19th FP)

End of fiscal period
ended September 2015(end of 20th FP)

End of fiscal period ended September
2015 (end of 20th FP)

Rate of change
in unit rent per tsubo

Period-end
occupancy rate

Period-end unit
rent per tsubo

Period-end
occupancy rate

Period-end unit
rent per tsubo(against end of 19th FP)

Period-end
occupancy rate

Period-end unit
rent per tsubo

Greater Tokyo /Major Urban Areas

96.5%¥12,84495.4%¥12,849

0.0%

95.4%

¥12,849

Greater Tokyo /Other Urban Areas

97.6%¥7,583

96.4%¥7,559

-0.3%

95.9%

¥7,641

Major Cities
Nationwide

95.3%¥7,313

94.5%¥7,301

-0.2%

94.5%

¥7,301

Overall

96.1%¥10,533

95.1%¥10,528

-0.0%

95.1%

¥10,512* The figures above 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

Changes in Renewal Rate
100%

100%

Key money acquisition rate decreased but wasmaintained at a certain level

Continuously secured 80% level for renewal rate

50%

59.7%

60.8%

52.8%

54.7%

48.8%

16th FP

17th FP

18th FP

19th FP

20th FP

82.1%

83.2%

85.2%

85.8%

82.8%

16th FP

17th FP

18th FP

19th FP

20th FP50%

0%

Note: The “key money acquisition rate” indicates ratio of cases which the Investment Corporation was able to acquire key money among the number of new contracts in each period. Also, 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.

24

Measures for Increasing Profitability of Residential Properties
In order to increase profitability of residential properties, various measures are being implemented such as cost
reduction measures, incidental revenue increase measures and leasing enhancement measures, etc.
Construction for Replacement to LED Light Fixtures
 Implemented LED light fixture replacement work at 6 properties in the 20th FP as well in order to reduce electricity consumption
at common areas
Construction costs are all capital expenditures and each period’s construction costs are expected to be recovered in 3 to 4 years with the
reduction of electricity use costs, etc.
Period of
implementation

Property nameFiscal period
ended
September 30,
2014 (18th FP)

Esty Maison GINZA

Fiscal period
ended
March 31, 2015
(19th FP)

Esty Maison OJIMA

Fiscal period
ended
September 30,
2015(20th FP)

Construction
cost

Expected amountof decrease
LED lighting replacement work started in the 18th FP

Prime Maison GINZA EAST
Total 2 properties

Esty Maison KYOBASHI, etc
Total 6 properties
Esty Maison ITABASHIKUYAKUSHOMAE
Esty Maison HAKATAHIGASHI, etc.
Total 6 properties

Approx.

Approx.

14 properties underwent replacement work by end of the 20th FP¥8 million¥3 million[13.3% of the residential portfolio (based on number of properties)]

Approx.

Approx.

¥18 million¥5 million

As a result, ¥12 million of electricity use costs, etc. in total is
expected to decrease annually(estimate)

Approx.

Approx.

¥14 million¥3 million

Replacement works are scheduled to be continually implemented
in the 21st FP and onwards for properties mainly at which highcost effects are expected

Note: “Estimates” are figures calculated by the Asset Management Company based on proposal materials by construction companies. In addition, there is no guarantee that the recovery of construction costs will be implemented.

Incidental Revenue Increase Measures

Examples of Internal Renewal Works Annual rent of mobile phone base stations increased The following internal renewal works were implemented in the 20th FP inorder to enhance leasing

Status of transfer of mobile phone base stations in the 20th FP→ Additionally installed at 2 properties, newly installed at 2 properties

Increase of ¥3 million in revenues annually

Switch to accent cloth wallpaper(Prime Maison ODORI KOEN)

Replacement of wallpaper for
kitchen doors(Esty Maison EBISU II)

Replacement of flooring(Esty Maison KAWARAMACHI)

25

Occupancy Status and Tenant Trends at Retail Properties
Maintained high occupancy at all retail properties during the period through working at stable management; Focus
on re-contracting with tenants whose contract periods are expiring going forward
Occupancy Status of Retail Properties
Occupancy Status in the 20th FP ended September 2015
Retail properties’ name
HAMAMATSU Plaza

Status of Re-Contracting in the 20th FP
 At Bell Plaza Shopping Center, concluded a re-contracting at increase
in rent with a tenant whose contract period expired in September 2015

End of 19th FP

End of 20th FP

Periodaverage

100%

100%

100%

Property nameBell Plaza Shopping Center
Retailing business

RINKU HAGURAZAKI Plaza (Note 1)

100%

100%

100%

Tenant’s business typeb-town MINAMIAOYAMA

100%

100%

100%

Contract period

October 2015 ‒ September 2018 (3 years)

KOJIMA × BIC CAMERA
Kamifukuoka store (Note 2)

Leased floor area

1,073.90m2

100%

100%

100%

b-toss IKEBUKURO (Note 1)

100%

‒

88.8%

Joy Square YUGAWARA

100%

100%

100%

Bell Plaza Shopping Center

100%

100%

100%

100%

100%

99.9%

Retail properties total

 Status of Remaining Contract Periods with Tenants at End of 20th FP

36.2%

1.5% 29.3%

33.0%

Less than 3 years

3 years to less than 5 years

5 years to less than 10 years

10 years or more

Weighted average ofremaining years (Note)
6.6 years

Note 1: “Part of RINKU HAGURAZAKI Plaza (section leased to Kojima Co., Ltd.) was assigned as of April 28, 2015 and b-toss IKEBUKURO was assigned as of June 12, 2015. Also, the “weighted average of remaining years” is based on tenant leaseagreements effective as of the end of the fiscal period ended September 30, 2015 (20th fiscal period) and calculated using the weighted average of rent for each shop during the lease period, and are rounded down to the nearest first decimal
place.
Note 2: The property name of “KOJIMA × BIC CAMERA Kamifukuoka store” was of “KOJIMA NEW KAMIFUKUOKA TEN” but the property name was changed as of June 22, 2015. The same applies hereafter.

Main Issues of Tenants at Retail Properties and Response Policies Going Forward
Retail properties’ nameCurrent status

Response policies going forward

HAMAMATSU Plaza● The successor tenant was determined by Sekisui House, theowner of the Ito Yokado building section closed in January 2015;
Currently, the plans for opening the new store is being negotiatedamong Sekisui House and the successor tenant

Fully cooperate so that the plans to open the new shop move onsmoothly while further deepening the relations with other existing tenants
in an effort to increase the attractiveness of the whole facility

Joy Square YUGAWARA● Of the total of 7 tenants, the contract of 1 tenant will expire in
February 2016 (21st FP) and contracts for 5 tenants will expire in
September 2016 (22nd FP)

Strengthen tenant relations while individually responding according to thesituation of tenants, aiming for the conclusion of re-contracting

Bell Plaza Shopping Center● Adjustments are being made for re-contracting with 3 tenants
whose contracts will expire in November 2015 (21st FP)

Aim to promptly conclude re-contracting with each tenant whose contract
period will expire

26

Granmast UNOMORI

IV. Financial Activities in and after the 20th FP and Current
Policy27

Summary of Financial Activities in and after 20th FP
Total interest-bearing debt

LTV

Average borrowing cost rate

¥101,809 million

51.8%

1.02%

(as of date of document)(as of date of document (estimate))(20th FP ended September 30, 2015)

Ratio of fixed interest rates

Ratio of Long-Term Borrowings

Average remaining periods of borrowings

88.4%

94.3%

4.2 years(as of date of document)(as of date of document)(as of date of document)

Note: “LTV” is calculated by dividing total interest-bearing debt as of date of the document with estimated amount of total assets as of the same date.

Debt Finance• Utilized part of the proceeds from the assignment of part of RINKU HAGURAZAKI Plaza and made an early repayment of short-term borrowings(floating rate of ¥1.0 billion) in May 2015
• Utilized part of the proceeds from the assignment of b-toss IKEBUKURO and made a partial early repayment of long-term borrowings (floating rateof ¥2.1 billion) in June 2015
• Conducted agile new borrowings (total of ¥5.8 billion) to procure funds for property acquisitions• With the full-period contribution of the decrease of spread from the refinancing in the 19th FP, further reduction of the average borrowing cost rate
was realized

Current
policy• Continue to promote conservative LTV control targeting a maximum in the lower 50% level while constantly
preparing and considering optimal funding methods in an aim to maintain and increase financial soundness• In addition to the above, we will maintain the current levels of the average borrowing cost rate, fixed-interest
borrowing rate and average remaining period of borrowings, strengthen the stability of the financial base andaim to further increase the credit rating28

Major Initiatives in and after 20th FP
Overview of Debt FinanceStatus of credit rating(as of date of document) Apr., July. and Oct. 2015
Conducted new borrowings of ¥5.8 billion in total to procure funds for property acquisitions• Realized a decrease in spread of short-term loans (20bp 17.5bp (-2.5bp) in March 2015 (19th FP);
Implemented agile funding procurement with the same level of spread in the 20th FP as well

Japan Credit Rating Agency, Ltd.
(JCR) May and June 2015
Implemented early repayments of a total of ¥3.1 billion utilizing proceeds from the assignment of retail properties

AA- (Stable)• Made early repayment of borrowings of ¥1.0 billion (floating rate; borrowing period: approx. 10 months) from
November 2014
• Made early repayment of borrowings of ¥2.1 billion from the borrowings of ¥2.8 billion (floating rate; borrowing
period: approx. 1 year 2 months) from January 2015

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

Reduced a total of ¥2.5 million of interest burdens in the 20th FP through early repayments (Note)

A+ (Stable)

Note: The indicated amount of eliminated interest burdens is the interest to be paid if the early repayments were not made and is calculated by the AssetManagement Company.

Promote further decrease in the average borrowing cost rate including the decrease in borrowing related expenses(%)

Average remaining period of borrowing (Note 3) (right axis)
4.2
years

1.97%
2.00

1.00

0.00

(years)
6.0

Average borrowing cost rates during the fiscal period (Notes 1 and 2) (left axis)

3.00

1.61%
2.0
years

2.0
years

1.56%

1.47%

3.1
years

2.1
years

2.3
years

1.38%

Fiscal period
ended Sept. 30, 2011
(12th FP)

Fiscal period
ended Mar. 31, 2012
(13th FP)

Fiscal period
ended Sept. 30, 2012
(14th FP)

Fiscal period
ended Mar. 31, 2013
(15th FP)

4.9
years

4.3
years

4.2
years
4.0

3.2
years

1.25%

Fiscal period
ended Mar. 31, 2011
(11th FP)

4.5
years

Fiscal period
ended Sept. 30, 2013
(16th FP)

1.20%

Fiscal period
ended Mar. 31, 2014
(17th FP)

2.0
1.09%

1.04%

Fiscal period
ended Sept. 30, 2014
(18th FP)

Fiscal period
ended Mar. 31, 2015
(19th FP)

1.02%

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

as of date of thisdocument

0.0

Note 1: Average borrowing cost rate during the fiscal period = Period borrowing cost (annualized) / Balance of period average interest-bearing debt; Borrowing cost = Interest expenses + 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.

29

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
100%

Short-termLong-term

Fixed

9.2%

100%

10.6%

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

11.6%

80%

(

Control LTV conservatively
LTVof this, long-term borrowings scheduled
to be repaid within 1 year)

Borrowing Capacity

51.8%

55%

9.4%

4.6%

(5.7%)(6.3%)

5.7%

51.5%

51.1%

(6.2%)¥20 billion¥18 billion

50%¥16 billion

60%
90.8%

40%

80%

89.4%

96.1%

88.4%

45%

95.4%

94.3%

¥14 billion¥16.9 billion

20%

0%

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

End of 20th FP(Sept. 30, 2015)60%

As of date of
document

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

End of 20th FP(Sept. 30, 2015)¥12 billion¥15.1 billion

40%¥13.9 billion

35%

As of date of
document¥10 billion¥8 billion

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

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

As of date of
document

Maturity Ladder (as of date of document)(million yen)

Diversification of repayment dates targeting about ¥10 billion per period

16,00014,000

Short-term borrowings

Long-term borrowings

Investment corporation bonds

12,000June 2015
Early
repayment

10,000
8,000

2,000

2,000

3,550

6,000
4,000

2,500

May 2015
Early
repayment

9,500
4,650

20th FPEndingSept. 30,2015

21st FPEndingMar. 31,
2016

6,792

2,800
1,200

0

9,900

8,382

4,000

22nd FPEndingSept. 30,2016

23rd FPEndingMar. 31,
2017

2,705

2,100

2,500

24th FPEndingSept. 30,2017

25th FPEndingMar. 31,2018

26th FPEndingSept. 30,2018

27th FPEndingMar. 31,2019

28th FPEndingSept. 30,2019

29th FPEndingMar. 31,
2020

9,830
8,100

5,500

30th FPEndingSept. 30,
2020

5,400

4,400

31st FPEndingMar. 31,2021

32nd FPEndingSept. 30,2021

33rd FPEndingMar. 31,2022

34th FPEndingSept. 30,2022

35th FPEndingMar. 31,2023

36th FPEndingSept. 30,
2023

3,000

3,000

37th FPEndingMar. 31,2024

38th FPEndingSept. 30,2024

Note 1: The above ratios are rounded to the nearest first decimal place.
Note 2: Ratio against the total interest-bearing debt.
Note 3: LTV = Period-end total interest-bearing debt ÷ Period-end total assets The same applies hereafter.

30

Major Financial Indicators Related to Interest-Bearing Debt (2)Overview of Interest-Bearing Debt
(million yen)

End of 20th FP (Sept. 30, 2015)
Average Interest
Rate onProcurement(Note 2)

Balance

Balance

Average Interest
Rate onProcurement(Note 2)100,000¥5,850 million

0.3%

60,000¥81,459 million

0.9%¥81,459 million

0.9%

40,000¥14,500 million

0.8%¥14,500 million

0.8%

20,000¥100,609 million

0.9%¥101,809 million

0.9%

51.5%

Short-term loans payable

14,50014,50014,50075,10975,10975,10980,0000.3%

LTV

Long-term loans payable

Current portion of long-term loans

120,000¥4,650 million

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

As of date of document

Investment corporation bonds

5,650

0

6,350

3,850

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

51.8% (estimate)

6,350

4,650

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

5,850

As of date of document

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

Outstanding Balance

Mizuho Bank, Ltd.

¥16,626 million

Share

1.4%

1.4%

19.0%

1.4%

1.4%

Mizuho Bank, Ltd.

1.4%

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation¥16,466 million

18.9%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥11,400 million

13.1%

1.7%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Mizuho Trust & Banking Co., Ltd.

¥6,030 million

6.9%

2.3%

Mizuho Trust & Banking Co., Ltd.

Sumitomo Mitsui Trust Bank, Limited¥6,000 million

6.9%

2.5%

Mitsubishi UFJ Trust and Banking Corporation¥5,842 million

6.7%

Development Bank of Japan Inc.

¥5,141 million

5.9%

The Norinchukin Bank

¥4,152 million

4.8%

Resona Bank, Limited.

¥3,950 million

4.5%

The Bank of Fukuoka, Ltd.

¥2,200 million

2.5%

Aozora Bank, Ltd.

¥2,000 million

2.3%

Shinkin Central Bank

¥1,500 million

1.7%

The Senshu Ikeda Bank, Ltd.

¥1,200 million

1.4%

The 77 Bank, Ltd.

¥1,200 million

1.4%

The Hiroshima Bank, Ltd.

¥1,200 million

1.4%

The Yamaguchi Bank, Ltd.

¥1,200 million

1.4%

The Hiroshima Bank, Ltd.

The Shizuoka Bank, Ltd.

¥1,200 million

1.4%

The Yamaguchi Bank, Ltd.

¥87,309 million

100.0%The Shizuoka Bank, Ltd.

Total debt

Sumitomo Mitsui Trust Bank, Limited

19.0%

4.5%

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

4.8%

The Norinchukin Bank
Resona Bank, Limited.

5.9%
18.9%

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

6.7%

Shinkin Central Bank

6.9%

13.1%
6.9%

The Senshu Ikeda Bank, Ltd.
The 77 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 September 30, 2015 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.

31

MAST LIFE HINO
マストライフ日野V. CSR and Environmental Activities

32

Examples of Initiatives in CSR and Environmental Activities

Implemented LED light fixture replacement work at common areas

Replacing air conditioners at exclusive areas
with energy-saving air conditioners

Newly implemented at 6 properties in the 20th FP (ended Sept. 2015)(Implemented at a total of 14 properties as of end of Sept. 2015)

Newly implemented at 100 units in the 20th FP (ended Sept. 2015)(Implemented at a total of 162 units as of end of Sept. 2015)

Electricity consumption:
Expected to decrease a total of approx. 481,492kwh annuallyGreenhouse gas emissions:
Expected to decrease a total of approx. 211tons annually Comparison of air conditioning units with “stars” energy efficiency andthose with “stars” energy efficiency

Electricity consumption:
Expected annual reduction of approx. 13% in electricity
consumption per unit
Greenhouse gas emissions:
Expected annual reduction of approx. 112kg per unit
in greenhouse gas emissions

Promoting the decrease in electricity
consumption at common areas and ofgreenhouse gas (CO2) emissions

Implemented installation of water-saving equipment(flow control valves)

Promoting the reduction in electricity consumption andgreenhouse gas (CO2) emissions at exclusive areas

Installing disaster relief vending machines

Newly implemented at 9 spots at 5 properties in the 20th FP (ended Sept. 2015)(Implemented at a total of 168 spots at 95 properties as of end of Setp. 2015)

Newly installed at 8 properties in the 20th FP (ended Sept. 2015)

Through the installation of flow control valves, which while not affecting
water pressure can lead to a reduction in water usage, a single flow
control valve is estimated to result in a reduction in water usage ofapprox. 30%

Installed vending machines that normally operate as regular vending
machines where drinks can be purchased but that enable anybody toeasily take out drinks for free at times of disasters and such

Promoting measures against resource
depletion through the reduction of water
usage at common areas

Introducing facilities that give safety and security
to residents in times of disasters and promoting
regional contribution of the owned properties

Note: The various estimated figures for decreases above calculated by the Asset Management Company based on proposal materials of the companies conducting the replacements and do not guarantee that the actual amount of estimated decreases will be
implemented.

33

Examples of Environmental Certification from External Agencies
Acquired the highest “Green Star” rating in the 2015 GRESB environmental survey,
the first ever for a residential J-REIT,
and selected as “Sector Leader” (ranked first) in Asia’s Residential Sector

Evaluation model
The GRESB survey is conducted by evaluating two dimensions which are “Management and Policy” with respect to consideration for environment,
society and governance and “Implementation and Measurement” with respect to actual effort. The results are divided into four categories (“GreenStar” , “Green Talk” , “Green Walk” and “Green Starter”) based on the evaluation model of the GRESB.
100

Green Talk

Green Star

What is GRESB?

Management and Policy

Australia/New Zealand (average)

The Global Real Estate Sustainability Benchmark (GRESB) is a benchmark system

Sekisui House SI
Residential Investment Corporation
Europe (average)
Average of GRESB

Asia (average)

2009 primarily by major European pension fund groups, which played a major role inestablishing the United Nation-backed Principles for Responsible Investment

North America (average)50

for evaluating sustainability performance in the real estate sector, established in

Initiative, for the purpose of enhancing shareholder value by applying

Other (average)

environmental, social and governance (ESG) considerations to real estate
investments. As of September 2015, 51 major institutional investors are GRESB
members with total assets under management of approximately 732 trillion yen

Green Starter(approximately US$6.1 trillion [at a rate of 120 yen to the U.S. dollar]) and use

Green WalkGRESB in selecting investment objects and discussing with clients they invest in.

0050
Implementation and Measurement100

Note: The above figures are indicated based on “2015 GRESB Report” published by the
GRESB.

34

Esty Maison TSUTSUJIGAOKA

Ⅵ. Appendix

Esty Maison KOHOKU TSUNASHIMA

プライムメゾン東桜
マスト博多
マスト博多

Balance Sheet (1)19th Fiscal Period(As of March 31, 2015)
Million yen

20th Fiscal Period(As of September 30, 2015)

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
Consumption tax receivable
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

2,941
5,128
177
139
0
39
0
-1
8,425

91,755-11,426
80,328
709
-161
548
1,733
-381
1,351
135
-51
83
102,216
184,529
152
0
0
153
235
417
125
778
185,46182
67
149
194,035

4.3

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

95.1

94,630-12,698
81,932
760
-181
579
1,769
-443
1,325
171
-62
109
101,906
185,852

0.1

150
0
0
150

0.4
95.6

242
370
130
743
186,747

0.1
100.0

74
52
127
195,280

4.3

200
-158
-45
22
-0
-39
1
0
-18

-0.2

95.1

2,874
-1,271
1,603
51
-20
30
36
-62
-25
36
-10
25
-310
1,323

0.7

0.1

-2
-0
-0
-2

-1.8

0.4
95.6

7
-46
5
-34
1,285

-4.4
0.7

0.1
100.0

-7
-14
-22
1,244

-14.7
0.6

36

Balance Sheet (2)19th Fiscal Period(As of March 31, 2015)
Million yen

20th Fiscal Period(As of September 30, 2015)

Percent of total

Million yen

ChangePercent of total

Million yen

Period on period (%)

Liabilities
Current liabilities
Operating accounts payable

413

256

-157

Short-term loans payable

3,850

4,650

800

Current portion of long-term loans payable

5,650

6,350

700

Accounts payable – other

538

562

24

Accrued expenses

58

55

-2

Income taxes payable

2

1

-1

Consumption tax payable

-

38

38

Advances received

286

290

3

Other

13

5

-7

Total current liabilities

10,812

5.6

12,211

6.3

1,398

12.9

Non-current liabilities
Investment corporation bond

14,50014,500Long-term loans payable

75,10975,109-Tenant leasehold and security deposits in trust

2,385

2,247

-138

Total non-current liabilities

Total liabilities-

91,99547.4

91,856

47.0

-138

-0.2

102,808

53.0

104,067

53.3

1,259

1.2

88,92545.8

88,925

45.5

-

0.0

Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Voluntary retained earnings

reserve for reduction entry-

77

total voluntary retained earnings

-

77

77
77

Unappropriated retained earnings

2,302

2,209

-92

Total surplus

2,302

1.2

2,287

1.2

-14

-0.6

Total unitholders’ equity

91,22747.0

91,213

46.7

-14

-0.0

91,22747.0

91,213

46.7

-14

-0.0

194,035

100.0

195,280

100.0

1,244

0.6

Total net assets

Total liabilities and net assets

37

Statement of Income and Retained Earnings
19th Fiscal Period
from October 1, 2014 to March 31, 2015
Million yen

Percent of total

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

6,134

6,330

152

81

6,286

100.0

6,411

196
-71
100.0

124

2.0

Operating expenses
Expenses related to rent business

2,835

2,975

140

Asset management fee

417

458

41

Asset custody fee

14

15

1

Administrative service fees

33

36

2

Directors’ compensations

3

3

-

Provision of allowance for doubtful accounts

0

1

0

Other operating expenses

167

Total operating expenses

3,472

55.2

3,667

57.2

195

5.6

2,814

44.8

2,743

42.8

-70

-2.5

Operating income

1769Non-operating income
Interest income

00Reversal of distributions payable

0

0

0

Interest on tax refund

0

0

-0

Compensation received

-

2

2

Other

-

0

Total non-operating income

1

0.0

3

-0

0
0.1

2

215.4

Non-operating expenses
Interest expenses

371

389

18

Interest expenses on investment corporation bonds

56

56

0

Amortization of investment corporation bond issuance costs

7

7

0

Borrowing related expenses

62

67

5

Amortization of investment unit issuance costs

13

14

0

Other

0

0

Total non-operating expenses

0

510

8.1

535

8.4

25

4.9

Ordinary Income

2,305

36.7

2,211

34.5

-93

-4.1

Income before income taxes

2,305

36.7

2,211

34.5

-93

-4.1

-1

-40.1

Income taxes - current

2

Income taxes - deferred-00-327.1

Total income taxes

2

0.0

1

0.0

-0

-36.5

2,302

36.6

2,209

34.5

-92

-4.0

-0

-47.1

-92

-4.0

Net income
Retained earnings brought forward

0

Unappropriated retained earnings

2,302

1
0

0
36.6

2,209

34.5

38

Statements of Cash Flows / Cash Distributions
Statement of Cash Flows
19th Fiscal Period
from October 1, 2014 toMarch 31, 2015

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

Million yen

Million yen

Cash flows from operating activities

19th Fiscal Period
from October 1, 2014 toMarch 31, 2015

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

Million yen

Million yen

Cash flows from investing activities

Income before income taxes

2,305

2,211

Depreciation

1,370

1,431

Amortization of investment corporation bond issuance
costs

7

7

Amortization of investment unit issuance costs

13

14

Increase (decrease) in allowance for doubtful accounts

0-0Interest income-0-0Interest expenses

427

446

Decrease (increase) in operating accounts receivable

-32

45

Decrease (increase) in prepaid expenses

16

-27

Purchase of property, plant and equipment in trust-19,664-5,888-1-

Proceeds from tenant leasehold and security
deposits in trust

257

175

Repayments of tenant leasehold and security
deposits in trust

-175

-313

-4

-12

-19,587-6,039Purchase of intangible assets

Decrease (increase) in investments and otherassets, net
Net cash used in investing activities
Cash flows from financing activities

Decrease (increase) in consumption taxes receivable29

39

Proceeds from short-term loans payable

3,850

1,800

Increase (decrease) in operating accounts payable

104

-96

Repayments of short-term loans payable-8,700-1,000

Increase (decrease) in accounts payable – other64

49

Proceeds from long-term loans payable

18,1502,800

Increase (decrease) in consumption taxes payable-

38

Repayments of long-term loans payable-6,650-2,100

Increase (decrease) in advances received-173

Decrease due to sale of property, plant and equipmentin trust

1,013

3,050

Decrease (increase) in long-term prepaid expenses

-94

51

0

-9

5,206

7,255

0

0

-433

-449

-2

-2

4,772

6,804

19th Fiscal Period
from October 1, 2014 toMarch 31, 2015

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

Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities

Proceeds from the issuance of investment units

9,819

-

Dividends paid

-1,949-2,223

Net cash provided by financing activities

14,520-723

Net increase (decrease) in cash and cash equivalents

-295

41

Cash and cash equivalents at the beginning of period

8,365

8,069

Cash and cash equivalents at the end of period

8,069

8,111

Statement of Cash Distributions

Yen

Yen

I. Unappropriated retained earnings

2,302,778,596

2,209,951,548

II. Cash distributions(Cash distributions per unit)

2,224,570,350(2,185)2,160,429,420(2,122)

77,988,021

49,435,695

220,225

86,433

III. Voluntary retained earnings(Provision for reserve for reduction entry)
IV. Retained earnings carried forward

39

Summary of Selected Financial Data
19th Fiscal Period
from October 1, 2014 toMarch 31, 2015
Business days

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

182 days

183 days

Total assets

194,035 million yen

195,280 million yen

Net assets

91,227 million yen

91,213 million yen

Unitholders’ capital

88,925 million yen

88,925 million yen

1,018,110 units

1,018,110 units

89,605 yen

89,590 yen

2,224 million yen

2,160 million yen

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

2,185 yen

2,122 yen

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

2.5%

2.3%

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

5.4%

4.8%

Unitholders’ equity ratio (Note 3)

47.0%

46.7%

107

110

399,249.82m2

400,210.45m2

97.4%

96.7%

1,369 million yen

1,431 million yen

Total number of properties
Total leasable floor area
Period-end occupancy rate
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

153 million yen

97 million yen

Leasing Net Operating Income(NOI) (Note 4)

4,669 million yen

4,786 million yen

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

Funds from Operation (FFO) (Note 5)

3,520 million yen

3,560 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)

3,458 yen

3,496 yen

99,109 million yen

100,609 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)

51.1%

51.5%

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

Interest-bearing debt ratio (Note 7)

52.7%

53.1%

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

9.6 times

9.2 times

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

40

History of the Investment Corporation since ListingManagement before change of sponsor

Management after change of sponsor

Total acquisitionPrice(million yen)

200,000

107
properties
188,771

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

190,000
170,000
160,000
150,000

July 28, 2005
Listed on the Tokyo
Stock Exchange

130,000

120,000
110,000

48
properties
91,818100,000
90,00052
properties
99,04853
properties
99,91953
properties
99,920(Note 1)53
properties
99,92053
properties
99,92057
properties
103,97458
properties
106,234

60
properties
101,006

66
properties
110,21477
properties
128,79489
properties
141,472

95
properties
151,744

Trade namechange(Note 1)

Apr. 1, 2014
Split ofInvestment Units

80,00070,00060,00050,00021
properties
47,51640,00030,00020,000Trade namechangeOct. 24, 2007
Public offering
17,500 units

Nov. 21, 2007
Third-party
allotment
1,170 units

Apr. 2, 2010
Third-party
allotment
10,400 units

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

10,000

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～～

0

Oct. 1, 2012
Public offering
20,460 units

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

Assignment of part of
HAMAMATSU Plaza, etc.
End of 1st FP(Mar. 31, 2006)

End of 5th FP
End of 6th FP
End of 7th FP(Mar. 31, 2008) (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)

End of 14th FP(Sept. 30, 2012)

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

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

Assignment of
1 property
Assignment of
Hamamatsu Plaza Eastand Ito-Yokado Building

Assignment of
1 property-10,000

111
properties
192,31099
properties
171,099

180,000

140,000

110
properties
191,020

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

Assignment of
1 property

Assignment of
1 property and part of RINKU
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)

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 2)

¥44,523
million¥52,181
million¥51,639
million¥51,449
million¥51,208
million¥49,229
million¥51,874
million¥54,032
million¥58,073
million¥59,503
million¥71,434
million¥75,975
million¥83,768
million¥92,459
million¥99,109
million¥100,609
million¥101,809
millionLTV(Note 3)

41.7%

45.2%

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%

-

Cash distribution
per unit(Note 4)

¥17,277（¥12,730）¥14,402¥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-

Note 1:

With regard to Bell Plaza Shopping Center acquired in the fiscal period ended March 31, 2008, the former land for waterway on site, adjacent signboards and the site itself were additionally acquired at a total of ¥1 million during the fiscal period ended September 30, 2009. Furthermore, the building
additionally built on the site was additionally acquired on June 29, 2012 for ¥18 million.

Note 2:

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

Note 3:

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

Note 4: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 5th 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.

41

Portfolio Development Policy
Investment target
Invests only in real estate-related assets that are mainly used (Note) as residences
Residences include student dorms, company housing and serviced housing for the elderly

Promote the establishment of a portfolio comprised of high-quality
residential properties with greater strength and appropriatenessfrom a medium- to long-term perspective

Note : “Mainly used” means that a majority of the total exclusive area of the relevant real estate-related asset is allocated for a specific use.

Target Investment Areas
Set Greater Tokyo / Major Urban Areas as the focused investment area for the portfolio
Establish an investment area called Major Cities Nationwide in the investment area categories
outside Greater Tokyo and diversify investment after severely selecting properties.

Major Cities
Nationwide

Greater Tokyo

Investment area category
Greater Tokyo / Major Urban Areas(Focused investment area)

Greater Tokyo / Other Urban Areas
Major Regional Cities
Other Major Cities Nationwide

Maximally utilize the nationwide network of the Sekisui House Group

Allocation ratio (Note 3)(based on acquisition price)

Specific area
(1) Tokyo： 23 wards, Musashino-shi, Mitaka-shi, Koganei-shi(2) Kanagawa： Yokohama-shi, Kawasaki-shi

About 70%
(1) Tokyo areas (except islands) and Kanagawa other than the above

Together with Greater Tokyo / Major Urban Areas(2) Chiba, Saitama

About 80%

(1) Sapporo-shi, Sendai-shi, Nagoya-shi, Kyoto-shi, Osaka-shi, Kobe-shi, Hiroshima-shi, Fukuoka-shi(2) Areas within commuting distance from (1) above (Note 1)
Government designated cities, etc. other than the above (Note 2)

About 20%
[Up to roughly 10% for Other Major Cities Nationwide]

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
and Fukuoka-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 present, special
ordinance cities at the entry into force) or prefectural capitals in areas other than Major Regional Cities.
Note 3: “About” 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.

Residence TypeWith regard to the types of rental housing that will be targets of investment, investment will be made in a wide range of rental housing types in order to respond to the various
needs of residents.
Single / Compact

FamilyLarge

Had already been positioned as a main investment target

Properties that are expected to have stable profitability
considering their area’s characteristics will be included as
main investment target

Invest selectively after carefully analyzing the location
environment, etc.

Participate in the Sekisui House’s development department’splanning and development meeting as an observer

Acquired 2 properties after public offering in 16th FP
Sekisui House has extensive performance in development

42

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

Chuo-ku

Setagaya-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

2.56%（Entire portfolio）

Note: “Portfolio Earthquake PML” is as of the survey in September
2015 on assets owned at the end of the fiscal period ended
September 30, 2015 (end of 20th fiscal period) and does notinclude RINKU HAGURAZAKI Plaza because the Investment
Corporation owns only the land.

43

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-93

Esty Maison YAKUIN

Residence-3

Esty Maison AZABUNAGASAKA

Residence-70

Esty Maison DAIZAWA

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

Residence-96

Prime Maison FUJIMIDAI

Residence-4

Esty Maison EBISU II

Residence-71

Esty Maison TOGOSHI

Residence-40

Esty Maison HACHIOJIMINAMINO

Residence-97

Esty Maison TSURUMAI

Residence-5

Esty Maison EBISU

Residence-74

Esty Maison SHIROKANEDAI

Residence-50

Prime Maison MUSASHINONOMORI

Residence-100 Prime Maison ODORI KOEN

Residence-6

Esty Maison KANDA

Residence-75

Esty Maison HIGASHISHINJUKUResidence-109 Esty Maison TSUTSUJIGAOKA

Residence-8

Esty Maison KITASHINJUKUResidence-76

Esty Maison MOTOAZABUResidence-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-13

Esty Maison IMAIKE

Residence-19 Esty Maison SUGAMO

Residence-83

Esty Maison KOENJI

Residence-20

Esty Maison KYOBASHI

Residence-21 Esty Maison MEGUROHONCHO

Residence-84

Esty Maison OSHIAGE

Residence-23

Esty Maison MINAMIHORIE

Residence-22 Esty Maison HAKURAKU

Residence-85

Esty Maison AKABANE

Residence-28

Esty Maison JOTO

Residence-24 Esty Maison GOTANDA

Residence-86

Esty Maison OJI

Residence-29

Esty Maison TSUKAMOTO

Residence-25 Esty Maison OISENDAIZAKA

Residence-87

Prime Maison WASEDA

Residence-35

Esty Maison TENJINHIGASHI I

Residence-26 Esty Maison SHINAGAWA SEASIDE

Residence-88

Prime Maison HATCHOBORIResidence-36

Esty Maison TENJINHIGASHI II

Residence-27 Esty Maison MINAMIAZABUResidence-89

Prime Maison JINBOCHO

Residence-37

Esty Maison SHIJONISHINOTOIN

Residence-30 Esty Maison KAWASAKI II

Residence-90

Prime Maison GOTENYAMA EAST

Residence-41

Esty Maison NISHINAKAJIMA

Residence-31 Esty Maison AZABUJUBAN

Residence-91

MAST LIFE AKIHABARA

Residence-46

Esty Maison HAKATAHIGASHI

Residence-33 Esty Maison ITABASHIHONCHO

Residence-94

Esty Maison KINSHICHO II

Residence-47

Esty Maison KAMIGOFUKUResidence-34 Esty Maison OIZUMIGAKUEN

Residence-95

Esty Maison OJIMA

Residence-51

Prime Maison HIGASHISAKURA

Residence-39 Esty Maison HIGASHISHINAGAWA

Residence-98

Prime Maison MORISHITA

Residence-52

Prime Maison KAYABAKOEN

Residence-42 Esty Maison ITABASHIKUYAKUSHOMAE

Residence-99

Prime Maison SHINAGAWA

Residence-55

MAST HAKATA

Residence-43 Esty Maison MUSASHIKOYAMA

Residence-104 MAST LIFE YAHIRO

Residence-58

Prime Maison GOKISO

Residence-44 Esty Maison SENDAGIResidence-105 Prime Maison EBISU

Residence-59

Prime Maison YUHIGAOKA

Residence-45 Esty Maison YOTSUYASAKAMACHI

Residence-106 Esty Maison SHIBAURA

Residence-60

Prime Maison KITATANABE

Residence-48 Esty Maison SANGENJAYAResidence-110 Esty Maison KOHOKU TSUNASHIMA

Residence-61

Prime Maison MOMOCHIHAMAResidence-65

Prime Maison TAKAMI

Residence-66

Prime Maison YADAMINAMI

Residence-56 Esty Maison KINSHICHO

Residence-67

Prime Maison TERIHA

Residence-57 Esty Maison MUSASHIKOGANEIResidence-68

Esty Maison HIGASHISHIRAKABE

Residence-62 Esty Maison AKIHABARA

Residence-72

Esty Maison KAWARAMACHI

Residence-63 Esty Maison SASAZUKA

Residence-73

Esty Maison NISHITENMA

Residence-64 Prime Maison GINZA EAST

Residence-92

Esty Maison AOIResidence-53 Esty Maison SANGENJAYA IIResidence-54 Esty Maison ITABASHI C6Other Real Estate in Trust (Retail Properties)
Retail-4

b-town MINAMIAOYAMA

Other Real Estate in Trust (Retail Properties)
Retail-5

KOJIMA ×BIC CAMERA
Kamifukuoka store

Retail-8

Joy Square YUGAWARA

Residence-101 Prime Maison MINAMI 2-JO
Residence-102 Prime Maison KAMOKAMOGAWA
Residence-103 Prime Maison CENTRAL PARK
Residence-107 Granmast KANAZAWA NISHIIZUMIResidence-108 Granmast UNOMORI

Major Cities Nationwide
Residence

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

HAMAMATSU Plaza

Retail-3

RINKU HAGURAZAKI Plaza

Retail-9

Bell Plaza Shopping Center

Property acquired as of October 1, 2015

Residence
Residence-111 MAST LIFE HINO

44

Status of Portfolio ~Residence~Primary Properties Owned
Greater Tokyo / Major Urban Areas
Esty Maison
GINZA

Esty Maison
OISENDAIZAKAGreater Tokyo / Other Urban Areas
Esty Maison
MACHIDA

Prime Maison
GINZA EAST

Prime Maison
WASEDA

Prime Maison
SHINAGAWA

Major Cities Nationwide
Prime Maison
MUSASHINONOMORI

Prime Maison
HIGASHISAKURAMASTHAKATA45

Status of Portfolio ~ Other Real Estate in Trust (Retail Properties )~Properties Owned

Greater Tokyo /Major Urban Areasb-town MINAMIAOYAMAGreater Tokyo /Other Urban Areas
KOJIMA × BIC CAMERA
Kamifukuoka StoreJoy Square YUGAWARA

Major Cities Nationwide
HAMAMATSU PlazaRINKU HAGURAZAKI Plaza

Bell Plaza Shopping Center46

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)

Estimated
Value at
End ofPeriod(Million yen)

Ratio
(%)

Occupancy Rate (%)

As of Mar. 31, As of Sept. 30,
2015
2015

Completion Date

Residence- 1

Esty Maison GINZA

Ginza, Chuo-ku, Tokyo

636.36

7,836.57

5,290

2.8

5,970

100.0

97.6 February 7, 2005

Residence- 3

Esty Maison AZABUNAGASAKA

Roppongi, Minato-ku, Tokyo

677.452,317.87

1,730

0.9

1,660

85.3

98.0 January 16, 2004

Residence- 4

Esty Maison EBISU II

Higashi, Shibuya-ku, Tokyo

561.582,452.69

1,960

1.0

1,870

95.7

83.8 June 13, 2003

Residence- 5

Esty Maison EBISU

Hiroo, Shibuya-ku, Tokyo

169.00871.90

700

0.4

807

96.1

96.1 October 20, 2004

Residence- 6

Esty Maison KANDA

Kandata-cho, Chiyoda-ku, Tokyo

307.692,028.19

1,360

0.7

1,460

100.0

93.2 February 20, 2004

Residence- 8

Esty Maison KITASHINJUKU

Kita-shinjuku, Shinjuku-ku, Tokyo

504.412,204.07

1,290

0.7

1,460

94.2

98.1 August 6, 2004

Residence-10

Esty Maison ASAKUSAKOMAGATA

Komagata, Taito-ku, Tokyo

663.54

3,406.10

1,870

1.0

2,000

96.5

95.6 July 28, 2004

Residence-11

Esty Maison MACHIDA

Hara-machida, Machida-shi, Tokyo

587.484,033.59

1,360

0.7

1,470

95.8

95.8 February 23, 2004

Residence-12

Esty Maison KAWASAKI

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

683.694,656.10

2,130

1.1

2,320

98.0

94.0 July 15, 2004

Residence-13

Esty Maison IMAIKE

Imaike, Chikusa-ku, Nagoya-shi, Aichi

360.54

1,375.76

300

0.2

204

96.9

91.4 October 15, 1991

Residence-14

Esty Maison SHINKAWASAKI

Furuichiba, Saiwai-ku, Kawasaki-shi, Kanagawa

1,992.09

3,737.47

1,018

0.5

1,190

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

2,060

100.0

100.0 January 23, 2007

Residence-16

Esty Maison KAMEIDO

Kameido, Koto-ku, Tokyo

438.432,899.67

1,650

0.9

1,450

98.9

89.6 November 30, 2005

Residence-17

Esty Maison MEGURO

Mita, Meguro-ku, Tokyo

578.01

1,283.92

887

0.5

1,030

91.8

97.5 November 28, 2005

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

Midorigaoka, Yachiyo-shi, Chiba

1,289.14

5,420.53

1,348

0.7

1,140

98.4

91.4 January 10, 1998

1,580

94.7

92.5 February 22, 2007

Residence-19 Esty Maison SUGAMO

Sugamo, Toshima-ku, Tokyo

965.702,785.83

1,510

0.8

Residence-20

Esty Maison KYOBASHI

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

799.685,995.82

2,774

1.5

2,770

97.0

93.9 March 2, 2006

Residence-21

Esty Maison MEGUROHONCHO

Megurohoncho, Meguro-ku, Tokyo

865.22

1,975.84

1,220

0.6

1,050

96.9

89.8 February 22, 2006

Residence-22

Esty Maison HAKURAKU

Rokkakubashi, Kanagawa-ku, Yokohama-shi, Kanagawa

457.54

1,593.68

844

0.4

855

98.2

92.9 February 2, 2006

Residence-23

Esty Maison MINAMIHORIE

Minamihorie, Nishi-ku, Osaka-shi, Osaka

475.06

1,994.14

1,055

0.6

998

98.6

95.4 February 19, 2007

Residence-24

Esty Maison GOTANDA (Note 5)

Nishi-gotanda, Shinagawa-ku, Tokyo

593.325,590.34

3,043

1.6

2,830

96.0

91.3 March 2, 2006

Residence-25

Esty Maison OISENDAIZAKA

Higashi-oi, Shinagawa-ku, Tokyo

558.393,440.73

2,440

1.3

2,540

99.2

99.2 August 10, 2006

Residence-26

Esty Maison SHINAGAWA SEASIDE

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,049.00

3,127.48

2,200

1.2

2,010

98.2

91.1 June 23, 2006

Residence-27

Esty Maison MINAMIAZABUMinamiazabu, Minato-ku, Tokyo

487.27

1,479.61

1,300

0.7

1,180

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

954

97.0

93.6 August 31, 2006

1,050

88.5

95.8 August 10, 2006

1,950

96.1

93.5 February 27, 2007

Residence-29 Esty Maison TSUKAMOTO
Residence-30

Esty Maison KAWASAKI II

Tsukamoto, Yodogawa-ku, Osaka-shi, Osaka

808.542,565.66

1,250

0.7

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

601.383,193.14

1,900

1.0

47

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)

Estimated
Value at
End ofPeriod(Million yen)

Ratio
(%)

Occupancy Rate (%)

As of Mar. 31, As of Sept. 30,
2015
2015

Completion Date

Residence-31

Esty Maison AZABUJUBAN

Azabujuban, Minato-ku, Tokyo

380.26

2,097.45

2,700

1.4

2,610

100.0

92.6 February 22, 2007

Residence-33

Esty Maison ITABASHIHONCHO

Yamato-cho, Itabashi-ku, Tokyo

220.85

1,446.78

1,000

0.5

943

95.4

89.2 February 27, 2007

Residence-34

Esty Maison OIZUMIGAKUEN

Higashi-Oizumi, Nerima-ku, Tokyo

618.001,542.16

871

0.5

823

91.2

93.2 February 22, 2007

Residence-35

Esty Maison TENJINHIGASHI I

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

239.18

1,158.70

445

0.2

389

97.8

93.5 January 31, 2007

Residence-36

Esty Maison TENJINHIGASHI II

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

514.892,108.69

840

0.4

718

98.8

95.1 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

1,140

97.8

95.6 April 8, 2008

Residence-39

Esty Maison HIGASHISHINAGAWA

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,028.92

3,338.12

2,610

1.4

2,370

97.6

92.3 May 23, 2008

Residence-40

Esty Maison HACHIOJIMINAMINO

Nishikatakura, Hachioji-shi, Tokyo

1,134.50

2,243.06

1,000

0.5

855

98.8

95.3 March 6, 2007

Residence-41

Esty Maison NISHINAKAJIMA

Higashinakajima, Higashiyodogawa-ku, Osaka-shi,
Osaka

969.02

3,947.24

2,250

1.2

1,880

91.5

93.0 April 18, 2007

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

Itabashi, Itabashi-ku, Tokyo

731.71

4,322.19

2,700

1.4

2,540

92.8

95.1 April 22, 2007

Residence-43

Esty Maison MUSASHIKOYAMA (Note 5)

Ebara, Shinagawa-ku, Tokyo

512.62

1,616.87

1,012

0.5

1,050

97.4

96.0 November 5, 2007

Residence-44

Esty Maison SENDAGI (Note 5)

Sendagi, Bunkyo-ku, Tokyo

250.44

1,239.10

757

0.4

709

97.7

95.8 January 9, 2008

Residence-45

Esty Maison YOTSUYASAKAMACHI (Note 5)

Yotsuyasakamachi, Shinjuku-ku, Tokyo

905.083,675.01

2,300

1.2

1,990

98.1

96.7 March 29, 2008

Residence-46

Esty Maison HAKATAHIGASHI

Yoshizuka, Hakata-ku, Fukuoka-shi, Fukuoka

4,590.91

9,465.09

2,250

1.2

2,440

98.9

94.7 November 21, 2007

Residence-47

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

593.552,523.71

900

0.5

856

97.0

92.5 March 14, 2008

Residence-48

Esty Maison SANGENJAYASangenjaya, Setagaya-ku, Tokyo

153.83954.94

871

0.5

840

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

1,850

97.6

96.4 December 19, 2007

Residence-51

Prime Maison HIGASHISAKURA

Higashisakura, Higashi-ku, Nagoya-shi, Aichi

846.053,517.62

1,140

0.6

1,400

97.3

95.8 February 15, 2008

Residence-52

Prime Maison KAYABAKOEN

Kayaba, Chikusa-ku, Nagoya-shi, Aichi

1,129.02

2,301.42

640

0.3

756

100.0

92.4 November 7, 2006

Residence-53

Esty Maison SANGENJAYA II

Shimouma, Setagaya-ku, Tokyo

473.85

1,006.89

714

0.4

819

100.0

91.2 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

2,430

94.6

91.1 March 12, 2008

2,457.01

11,621.67

1,920

1.0

2,380

100.0

100.0 January 15, 2005

Kinshi, Sumida-ku, Tokyo

338.57

1,718.10

1,050

0.5

1,230

97.3

97.2 September 6, 2006

Esty Maison MUSASHIKOGANEI

Honcho, Koganei-shi, Tokyo

520.252,676.36

1,450

0.8

1,630

93.2

97.1 February 2, 2005

Residence-58

Prime Maison GOKISO

Ayuchitori, Showa-ku, Nagoya-shi, Aichi

1,429.67

4,691.72

1,640

0.9

1,820

90.7

96.7 October 28, 2008

Residence-59

Prime Maison YUHIGAOKA

Ueshio, Tennoji-ku, Osaka-shi, Osaka

547.152,336.49

810

0.4

904

100.0

100.0 February 16, 200748

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

Property Name

Location

Site Area(m2)

Total Floor
Area
(m2)

Price
(Million yen)

Estimated
Value at
End ofPeriod(Million yen)

Ratio
(%)

Occupancy Rate (%)

As of Mar. 31, As of Sept. 30,
2015
2015

Completion Date

Residence-60

Prime Maison KITATANABE

Kitatanabe, Higashisumiyoshi-ku, Osaka-shi, Osaka

640.92

2,112.46

540

0.3

594

100.0

91.4 June 13, 2006

Residence-61

Prime Maison MOMOCHIHAMA

Momochihama, Sawara-ku Fukuoka-shi, Fukuoka

4,069.42

8,945.61

1,810

0.9

1,970

100.0

100.0 February 29, 1996

Residence-62

Esty Maison AKIHABARA

Ueno, Taito-ku, Tokyo

458.322,821.47

1,560

0.8

1,860

100.0

97.5 February 24, 2006

Residence-63

Esty Maison SASAZUKA

Sasazuka, Shibuya-ku, Tokyo

909.33

4,263.10

2,830

1.5

3,060

97.8

88.2 September 7, 2004

Residence-64

Prime Maison GINZA EAST

Tsukiji, Chuo-ku, Tokyo

969.108,724.48

5,205

2.7

5,740

97.3

96.3 February 28, 2006

Residence-65

Prime Maison TAKAMI

Takami, Chikusa-ku, Nagoya-shi, Aichi

1,129.17

2,354.34

905

0.5

985

92.4

89.3 August 27, 2008

Residence-66

Prime Maison YADAMINAMI

Yadaminami, Higashi-ku, Nagoya-shi, Aichi

1,148.53

2,430.23

715

0.4

768

96.2

95.7 July 18, 2007

Residence-67

Prime Maison TERIHA

Kashiiteriha, Higashi-ku, Fukuoka-shi, Fukuoka

4,130.59

7,953.60

1,110

0.6

1,240

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

1,240

89.7

98.4 August 6, 2009

Residence-70

Esty Maison DAIZAWA

Daizawa, Setagaya-ku, Tokyo

1,901.36

2,948.98

1,870

1.0

2,060

93.4

95.4 February 18, 2010

Residence-71

Esty Maison TOGOSHI

Togoshi, Shinagawa-ku, Tokyo

679.82

2,545.90

1,370

0.7

1,600

98.9

100.0 June 25, 2009

Residence-72

Esty Maison KAWARAMACHI

Kawaramachi, Chuo-ku, Osaka-shi, Osaka

655.894,580.48

1,640

0.9

1,830

99.0

94.5 October 17, 2006

Residence-73

Esty Maison NISHITENMA

Nishitenma, Kita-ku, Osaka-shi, Osaka

519.65

4,514.05

1,440

0.8

1,610

93.3

95.5 November 30, 2007

Residence-74

Esty Maison SHIROKANEDAI

Kamiosaki, Shinagawa-ku, Tokyo

1,279.67

2,797.66

1,900

1.0

2,230

97.9

95.8 September 16, 2003

2,227.87

1,370

0.7

1,520

92.2

97.9 April 17, 2009

Residence-75

Esty Maison HIGASHISHINJUKU

Shinjuku, Shinjuku-ku, Tokyo

704.82

Residence-76

Esty Maison MOTOAZABU

Motoazabu, Minato-ku, Tokyo

755.991,699.44

1,170

0.6

1,440

100.0

100.0 November 9, 2009

Residence-77

Esty Maison TORITSUDAIGAKU

Tairamachi, Meguro-ku, Tokyo

766.84

1,399.75

729

0.4

804

93.5

87.1 February 23, 2009

Residence-78

Esty Maison MUSASHIKOYAMA II

Koyama, Shinagawa-ku, Tokyo

609.81

1,436.58

844

0.4

957

100.0

100.0 May 25, 2009

Residence-79

Esty Maison NAKANO

Chuo, Nakano-ku, Tokyo

687.472,608.04

1,540

0.8

1,720

98.9

95.2 June 24, 2009

Residence-80

Esty Maison SHINNAKANO

Honcho, Nakano-ku, Tokyo

747.64

1,508.07

847

0.4

934

98.0

98.0 October 22, 2009

Residence-81

Esty Maison NAKANOFUJIMICHO

Yayoicho, Nakano-ku, Tokyo

907.66

1,531.56

863

0.5

940

87.4

90.8 February 16, 2009

Residence-82

Esty Maison TETSUGAKUDO

Matsugaoka, Nakano-ku, Tokyo

686.93

1,858.00

954

0.5

1,100

80.6

90.0 October 21, 2009

Residence-83

Esty Maison KOENJI

Koenjiminami, Suginami-ku, Tokyo

1,100.15

1,977.24

958

0.5

1,090

96.7

96.6 March 10, 2009

Residence-84

Esty Maison OSHIAGE

Narihira, Sumida-ku, Tokyo

1,134.70

4,344.84

1,950

1.0

2,300

96.7

98.4 April 23, 2010

1,157.02

5,675.18

2,730

1.4

3,050

98.8

100.0 November 25, 2009

518.872,939.76

1,380

0.7

1,520

94.0

94.4 July 6, 2010

Residence-85

Esty Maison AKABANE

Akabane, Kita-ku, Tokyo

Residence-86

Esty Maison OJI

Oji, Kita-ku, Tokyo

49

List of Properties Owned at End of Period (4)Acquisition Price
Property No.

Property Name

Location

Site Area(m2)

Total Floor
Area
(m2)

Price
(Million yen)

Estimated
Value at
End ofPeriod(Million yen)

Ratio
(%)

Occupancy Rate (%)

As of Mar. 31, As of Sept. 30,
2015
2015

Completion Date

Residence-87

Prime Maison WASEDA

Waseda Tsurumaki-cho, Shinjuku-ku, Tokyo

358.54

1,914.93

1,280

0.7

1,490

97.6

98.5 November 8, 2012

Residence-88

Prime Maison HATCHOBORI

Hatchobori, Chuo-ku, Tokyo

302.07

1,901.58

1,160

0.6

1,350

93.2

96.9 November 16, 2012

Residence-89

Prime Maison JINBOCHO

Kandajinbo-cho, Chiyoda-ku, Tokyo

389.482,341.30

1,640

0.9

1,790

98.6

100.0 March 1, 2013

Residence-90

Prime Maison GOTENYAMA EAST

Kitashinagawa, Shinagawa-ku, Tokyo

2,167.60

3,727.89

2,120

1.1

2,570

92.2

95.3 January 18, 2011

Residence-91

MAST LIFE AKIHABARA

Kanda Sakumagashi, Chiyoda-ku, Tokyo

151.48939.79

480

0.3

511

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

2,320

94.5

93.1 October 3, 2007

Residence-93

Esty Maison YAKUIN

Hirao, Chuo-ku, Fukuoka-shi, Fukuoka

1,342.00

5,590.13

2,008

1.1

2,260

96.7

96.9 February 2, 2006

Residence-94

Esty Maison KINSHICHO II

Kotobashi, Sumida-ku, Tokyo

1,679.75

11,160.19

6,720

3.5

7,720

95.2

96.5 January 17, 2008

Residence-95

Esty Maison OJIMA

Ojima, Koto-ku, Tokyo

3,003.87

11,940.22

7,120

3.7

8,340

98.8

98.9 September 13, 2007

Residence-96

Prime Maison FUJIMIDAI

Fujimidai, Chikusa-ku, Nagoya-shi, Aichi

4,882.14

6,173.03

1,755

0.9

1,930

88.7

92.4 April 24, 2007

Residence-97

Esty Maison TSURUMAI

Chiyoda, Naka-ku, Nagoya-shi, Aichi

3,470.05

21,577.20

3,760

2.0

4,160

100.0

100.0 November 27, 1999

Residence-98

Prime Maison MORISHITA

Morishita, Koto-ku, Tokyo

461.602,668.30

1,720

0.9

1,830

97.7

97.7 May 14, 2013

Residence-99

Prime Maison SHINAGAWA

Kita-Shinagawa, Shinagawa-ku, Tokyo

972.94

2,693.31

1,680

0.9

1,790

97.3

96.0 February 18, 2014

Residence-100 Prime Maison ODORI KOEN

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

1,007.42

11,090.88

2,660

1.4

2,980

94.1

90.9 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

1,780

98.3

100.0 November 30, 2009

Residence-102 Prime Maison KAMOKAMOGAWA

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

754.61

6,160.49

970

0.5

1,160

98.0

97.4 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

2,273

91.4

94.3 February 3, 2011

Residence-104 MAST LIFE YAHIRO

Yahiro, Sumida-ku, Tokyo

1,296.64

4,012.49

1,670

0.9

1,770

100.0

100.0 January 14, 2011

Residence-105 Prime Maison EBISU

Ebisu, Shibuya-ku, Tokyo

587.16

3,798.12

3,585

1.9

4,070

99.0

99.2 June 5, 2014

Residence-106 Esty Maison SHIBAURA

Shibaura, Minato-ku, Tokyo

1,217.25

4,855.53

2,730

1.4

2,780

95.8

91.6 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 September 14, 2007

Residence-108 Granmast UNOMORIUnomori, Yokkaichi-shi, Mie

790.452,444.91

745

0.4

771

‒

100.0 April 13, 2009

Residence-109 Esty Maison TSUTSUJIGAOKA

Nishitsutsujigaoka, Chofu-shi, Tokyo

1,503.25

2,456.48

871

0.5

909

‒

92.3 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

2,708

‒

100.0

117,166.40

404,531.77

177,579

93.0

189,194

96.7

96.0

Residence Subtotal(Note 8)50

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

Property Name

Location

Site Area(m2)

Total Floor
Area (m2)Price(Million yen)

Estimated
Value at
End ofPeriod(Million yen)

Ratio
(%)

Occupancy Rate (%)

As of Mar. 31, As of Sept. 30,
2015
2015

Completion Date

Retail-1

HAMAMATSU Plaza (Note 9)

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

73,937.28

11,229.79

3,820

2.0

2,440

100.0

100.0

(Note 9)Retail-3

RINKU HAGURAZAKI Plaza (Note 10)

Tajiri-cho, Sennan-gun, Osaka

40,457.00(Note 10)

3,624

1.9

4,010

100.0

100.0

(Note 10)Retail-4

b-town MINAMIAOYAMAMinamiaoyama, Minato-ku, Tokyo

385.32797.63

1,530

0.8

1,140

100.0

100.0

February 28, 2006

Retail-5

KOJIMA × BIC CAMERA
Kamifukuoka store

Kamifukuoka, Fujimino-shi, Saitama

4,877.90

3,413.40

1,300

0.7

1,140

100.0

100.0

October 14, 1996

Retail-8

Joy Square YUGAWARA

Chuo, Yugawara-machi, Ashigarashimo-gun, Kanagawa

5,425.13

6,326.53

1,810

0.9

1,580

100.0

100.0

September 22, 2006

23,304.57

6,283.76

1,355(Note 11)

0.7

1,190

100.0

100.0

(Note 11)

Other real estate in trust （retail properties） Subtotal

148,387.20

28,051.11

13,441

7.0

11,500

100.0

100.0

Portfolio Total

265,553.60

432,582.88

191,020100.0

200,694

97.4

96.7

Retail-9

Bell Plaza Shopping Center

Nakamaruko, Ueda-shi, Nagano

Owned as of September 30, 2015 (end of 20th fiscal period)
Acquired on October 1, 2015 (21th fiscal period)
Owned as of the date of this document (November 17, 2015)

110 properties

191,020 million yen

1 property

1,290 million yen

111 properties

192,310 million yen

Note 1 : Based on information as of September 30, 2015. Occupancy rates 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 portfolio’s total acquisition price 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 either the amount appraised based on an appraisal or the survey price based on a real estate price survey 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 Ito-Yokado Building,the Akachan Honpo Building, the Xebio Building, the Hamapla & Frespo Building, and a management building) and two buildings l ocated in the Hamamatsu Plaza West area (the Hamamatsu West Building and the Hamamatsu Plaza Sports
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 and started
operations, but a portion was assigned 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 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 thetenants). 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 assigned 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 Ito-Yokado Building had been closed on January 18, 2015.
Note 10: RINKU HAGURAZAKI Plaza is a commercial facility comprised of three sections where Kohnan Shoji Co., Ltd., AEONTOWN Co., Ltd. and Kojima Co., Ltd. respectively have land leasehold rights for business purposes as the lessees (the section
Kojima Co., Ltd. Had land leasehold right was already assigned), and each of the sections is separated by roads. The Investment Corporation has no ownership of the buildings in these secti ons and owns and leases the sites of the buildings only.
The building is owned by the lessee, and thus its “Total Floor Area” and “Completion Date” aren’t indicated. In addition, the Investment Corporation assigned a section of the site leased to Kojima Co., Ltd. on April 28, 2015.
Note 11: With regard to Bell Plaza Shopping Center acquired in the fiscal period ended March 31, 2008, the former land for waterway on site, adjacent signboards and the site itself were additionally acquired at a total of ¥1million during the fiscal period
ended September 30, 2009. Furthermore, the building additionally built on the site was additionally acquired on June 29, 2012 for ¥18 million. Bell-Plaza Shopping Center is commercial complex, with the center building and shop building
completed on November 30, 1992, the restaurant building completed on July 12, 2006 and the separate crystal plaza building completed on June 26, 2012.

51

List of Fiscal Period-End Estimated Values (1)Period-end estimated value(million yen)
Property No.

Property Name
As of Mar. 31,
2015

As of Sept. 30,
2015

Direct capitalization rate (%)
Change(million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Mar. 31,
2015

As of Sept. 30,
2015

As of Mar. 31,
2015

As of Sept. 30,
2015

As of Mar. 31,
2015

As of Sept. 30,
2015

Balance sheet
amount(million yen)

Unrealized
gain/loss(million yen)

Residence-1

Esty Maison GINZA

5,810

5,970

160

4.5

4.4

4.7

4.6

4.7

4.6

4,786

1,183

Residence-3

Esty Maison AZABUNAGASAKA

1,630

1,660

30

4.6

4.5

4.7

4.6

4.8

4.7

1,632

27

Residence-4

Esty Maison EBISU II

1,860

1,870

10

4.6

4.5

4.7

4.6

4.8

4.7

1,839

30

Residence-5

Esty Maison EBISU

790

807

17

4.5

4.4

4.6

4.5

4.7

4.6

646

160

Residence-6

Esty Maison KANDA

1,410

1,460

50

4.6

4.5

4.7

4.6

4.8

4.7

1,239

220

Residence-8

Esty Maison KITASHINJUKU

1,450

1,460

10

4.8

4.7

4.8

4.7

5.0

4.9

1,184

275

Residence-10

Esty Maison ASAKUSAKOMAGATA

1,970

2,000

30

4.8

4.7

4.8

4.7

5.0

4.9

1,667

332

Residence-11

Esty Maison MACHIDA

1,460

1,470

10

5.3

5.2

5.2

5.1

5.5

5.4

1,110

359

Residence-12

Esty Maison KAWASAKI

2,310

2,320

10

5.0

4.9

5.0

4.9

5.2

5.1

1,858

461

Residence-13

Esty Maison IMAIKE

196

204

8

6.1

6.0

5.5

5.4

6.3

6.2

266

-62

Residence-14

Esty Maison SHINKAWASAKI

1,170

1,190

20

5.4

5.3

4.2

4.1

5.6

5.5

941

248

Residence-15

Esty Maison YOKOHAMA

2,010

2,060

50

5.0

4.9

4.8

4.7

5.2

5.1

1,935

124

Residence-16

Esty Maison KAMEIDO

1,430

1,450

20

5.0

4.9

4.8

4.7

5.2

5.1

1,446

3

Residence-17

Esty Maison MEGURO

1,020

1,030

10

4.5

4.4

4.3

4.2

4.7

4.6

804

225

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

1,130

1,140

10

5.4

5.3

5.3

5.2

5.5

5.4

1,185

-45

Residence-19

Esty Maison SUGAMO

1,550

1,580

30

4.5

4.4

4.3

4.2

4.7

4.6

1,470

109

Residence-20

Esty Maison KYOBASHI

2,710

2,770

60

5.2

5.1

5.1

5.0

5.3

5.2

2,366

403

Residence-21

Esty Maison MEGUROHONCHO

1,030

1,050

20

4.7

4.6

4.5

4.4

4.9

4.8

1,130

-80

Residence-22

Esty Maison HAKURAKU

837

855

18

5.1

5.0

4.9

4.8

5.3

5.2

731

123

Residence-23

Esty Maison MINAMIHORIE

984

998

14

5.0

4.9

4.8

4.7

5.2

5.1

963

34

Residence-24

Esty Maison GOTANDA

2,830

2,830

-

4.9

4.8

4.6

4.5

5.1

5.0

2,787

42

Residence-25

Esty Maison OISENDAIZAKA

2,490

2,540

50

4.7

4.6

4.5

4.4

4.9

4.8

2,254

285

Residence-26

Esty Maison SHINAGAWA SEASIDE

1,980

2,010

30

4.5

4.4

4.3

4.2

4.7

4.6

2,008

1

Residence-27

Esty Maison MINAMIAZABU

1,160

1,180

20

4.2

4.1

4.0

3.9

4.4

4.3

1,211

-31

Residence-28

Esty Maison JOTO

922

954

32

5.4

5.2

5.2

5.0

5.6

5.4

993

-39

Residence-29

Esty Maison TSUKAMOTO

1,050

1,050

-

5.4

5.2

5.2

5.0

5.6

5.4

1,135

-85

Residence-30

Esty Maison KAWASAKI II

1,910

1,950

40

4.7

4.6

4.5

4.4

4.9

4.8

1,750

199

52

List of Fiscal Period-End Estimated Values (2)Period-end estimated value(million yen)
Property No.

Property Name
As of Mar. 31,
2015

As of Sept. 30,
2015

2,550

2,610

Direct capitalization rate (%)
Change(million yen)

Discount rate (%)

Terminal capitalization rate (%)

Balance sheet
amount(million yen)

Unrealized
gain/loss(million yen)

As of Mar. 31,
2015

As of Sept. 30,
2015

As of Mar. 31,
2015

As of Sept. 30,
2015

As of Mar. 31,
2015

As of Sept. 30,
2015

60

4.2

4.1

4.0

3.9

4.4

4.3

2,618

-8

Residence-31

Esty Maison AZABUJUBAN

Residence-33

Esty Maison ITABASHIHONCHO

925

943

18

4.6

4.5

4.4

4.3

4.8

4.7

927

15

Residence-34

Esty Maison OIZUMIGAKUEN

808

823

15

4.7

4.6

4.5

4.4

4.9

4.8

807

15

Residence-35

Esty Maison TENJINHIGASHI I

382

389

7

5.6

5.5

5.4

5.3

5.8

5.7

391

-2

Residence-36

Esty Maison TENJINHIGASHI II

708

718

10

5.6

5.5

5.4

5.3

5.8

5.7

736

-18

Residence-37

Esty Maison SHIJONISHINOTOIN

1,110

1,140

30

5.3

5.2

5.1

5.0

5.5

5.4

1,312

-172

Residence-39

Esty Maison HIGASHISHINAGAWA

2,360

2,370

10

4.8

4.7

4.6

4.5

5.0

4.9

2,479

-109

Residence-40

Esty Maison HACHIOJIMINAMINO

840

855

15

5.4

5.3

5.3

5.2

5.5

5.4

903

-48

Residence-41

Esty Maison NISHINAKAJIMA

1,870

1,880

10

5.3

5.1

5.1

4.9

5.5

5.3

1,971

-91

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

2,500

2,540

40

4.6

4.5

4.4

4.3

4.8

4.7

2,519

20

Residence-43

Esty Maison MUSASHIKOYAMA

1,030

1,050

20

4.6

4.5

4.4

4.3

4.8

4.7

963

86

Residence-44

Esty Maison SENDAGI

695

709

14

4.6

4.5

4.4

4.3

4.8

4.7

724

-15

Residence-45

Esty Maison YOTSUYASAKAMACHI

1,950

1,990

40

4.5

4.4

4.3

4.2

4.7

4.6

2,222

-232

Residence-46

Esty Maison HAKATAHIGASHI

2,390

2,440

50

5.4

5.3

5.4

5.3

5.5

5.4

2,071

368

Residence-47

Esty Maison KAMIGOFUKU

841

856

15

5.3

5.2

5.3

5.2

5.4

5.3

831

24

Residence-48

Esty Maison SANGENJAYA

833

840

7

4.6

4.5

4.7

4.6

4.8

4.7

850

-10

Residence-50

Prime Maison MUSASHINONOMORI

1,810

1,850

40

5.3

5.2

5.2

5.1

5.5

5.4

1,508

341

Residence-51

Prime Maison HIGASHISAKURA

1,370

1,400

30

5.3

5.2

5.2

5.1

5.5

5.4

1,070

329

Residence-52

Prime Maison KAYABAKOEN

744

756

12

5.5

5.4

5.4

5.3

5.7

5.6

611

144

Residence-53

Esty Maison SANGENJAYA II

812

819

7

4.7

4.6

4.8

4.7

4.9

4.8

683

135

Residence-54

Esty Maison ITABASHI C6

2,380

2,430

50

4.8

4.7

4.6

4.5

5.0

4.9

2,160

269

Residence-55

MAST HAKATA

2,380

2,380

-

5.4

5.3

4.9

4.8

5.6

5.5

1,853

526

Residence-56

Esty Maison KINSHICHO

1,200

1,230

30

4.7

4.6

4.5

4.4

4.9

4.8

1,057

172

Residence-57

Esty Maison MUSASHIKOGANEI

1,610

1,630

20

5.0

4.9

5.1

5.0

5.2

5.1

1,470

159

Residence-58

Prime Maison GOKISO

1,790

1,820

30

5.3

5.2

5.3

5.2

5.5

5.4

1,579

240

Residence-59

Prime Maison YUHIGAOKA

878

904

26

5.1

4.9

4.9

4.7

5.3

5.1

780

123

53

List of Fiscal Period-End Estimated Values (3)Period-end estimated value(million yen)
Property No.

Residence-60

Property Name

Prime Maison KITATANABE

As of Mar. 31,
2015

As of Sept. 30,
2015

573

594

Direct capitalization rate (%)
Change(million yen)

21

Discount rate (%)

Terminal capitalization rate (%)

Balance sheet
amount(million yen)

Unrealized
gain/loss(million yen)

As of Mar. 31,
2015

As of Sept. 30,
2015

As of Mar. 31,
2015

As of Sept. 30,
2015

As of Mar. 31,
2015

As of Sept. 30,
2015

5.4

5.2

5.2

5.0

5.6

5.4

519

74

5.1
（Note 4）

5.7

5.6

1,799

170

Residence-61

Prime Maison MOMOCHIHAMA

1,950

1,970

20

5.5

5.4

5.2
(Note 4)

Residence-62

Esty Maison AKIHABARA

1,790

1,860

70

4.6

4.6

4.4

4.4

4.8

4.8

1,533

326

Residence-63

Esty Maison SASAZUKA

3,020

3,060

40

4.7

4.6

4.5

4.4

4.9

4.8

2,810

249

Residence-64

Prime Maison GINZA EAST

5,720

5,740

20

4.4

4.4

4.2

4.2

4.6

4.6

5,085

654

Residence-65

Prime Maison TAKAMI

972

985

13

5.1

5.0

5.2

5.1

5.3

5.2

883

101

Residence-66

Prime Maison YADAMINAMI

753

768

15

5.5

5.4

5.4

5.3

5.7

5.6

696

71

Residence-67

Prime Maison TERIHA

1,230

1,240

10

5.7

5.6

5.5

5.4

5.9

5.8

1,078

161

5.1
(Note 4）

5.6

5.5

1,307

182

Residence-68

Esty Maison HIGASHISHIRAKABE

1,470

1,490

20

5.4

5.3

5.2
(Note 4)

Residence-69

Esty Maison SENGOKU

1,210

1,240

30

4.5

4.4

4.3

4.2

4.7

4.6

1,098

141

Residence-70

Esty Maison DAIZAWA

2,020

2,060

40

4.5

4.4

4.3

4.2

4.7

4.6

1,908

151

Residence-71

Esty Maison TOGOSHI

1,550

1,600

50

4.6

4.5

4.7

4.6

4.8

4.7

1,392

207

Residence-72

Esty Maison KAWARAMACHI

1,810

1,830

20

5.1

5.0

5.2

5.1

5.3

5.2

1,613

216

Residence-73

Esty Maison NISHITENMA

1,590

1,610

20

5.1

5.0

5.2

5.1

5.3

5.2

1,416

193

Residence-74

Esty Maison SHIROKANEDAI

2,200

2,230

30

4.5

4.4

4.3

4.2

4.7

4.6

1,982

247

Residence-75

Esty Maison HIGASHISHINJUKU

1,510

1,520

10

4.6

4.5

4.7

4.6

4.8

4.7

1,381

138

Residence-76

Esty Maison MOTOAZABU

1,390

1,440

50

4.4

4.3

4.5

4.4

4.6

4.5

1,190

249

Esty Maison TORITSUDAIGAKU

800

804

4

4.5

4.4

4.6

4.5

4.7

4.6

744

59

Residence-78

Esty Maison MUSASHIKOYAMA II

937

957

20

4.6

4.5

4.4

4.3

4.8

4.7

856

100

Residence-79

Esty Maison NAKANO

1,680

1,720

40

4.6

4.5

4.4

4.3

4.8

4.7

1,561

158

Residence-80

Esty Maison SHINNAKANO

914

934

20

4.7

4.6

4.5

4.4

4.9

4.8

858

75

Residence-81

Esty Maison NAKANOFUJIMICHO

937

940

3

4.7

4.6

4.8

4.7

4.9

4.8

876

63

Residence-82

Esty Maison TETSUGAKUDO

1,100

1,100

-

4.7

4.6

4.5

4.4

4.9

4.8

964

135

Residence-83

Esty Maison KOENJI

1,090

1,090

-

4.6

4.5

4.7

4.6

4.8

4.7

975

114

Residence-84

Esty Maison OSHIAGE

2,250

2,300

50

4.8

4.7

4.8

4.7

5.0

4.9

1,973

326

Residence-85

Esty Maison AKABANE

2,990

3,050

60

4.8

4.7

4.6

4.5

5.0

4.9

2,749

300

Residence-86

Esty Maison OJI

1,500

1,520

20

4.8

4.7

4.6

4.5

5.0

4.9

1,391

128

Residence-77

54

List of Fiscal Period-End Estimated Values (4)Period-end estimated value(million yen)
Property No.

Property Name
As of Mar. 31,
2015

As of Sept. 30,
2015

Direct capitalization rate (%)
Change(million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Mar. 31,
2015

As of Sept. 30,
2015

As of Mar. 31,
2015

As of Sept. 30,
2015

As of Mar. 31,
2015

As of Sept. 30,
2015

Balance sheet
amount(million yen)

Unrealized
gain/loss(million yen)

Residence-87

Prime Maison WASEDA

1,450

1,490

40

4.5

4.4

4.3

4.2

4.7

4.6

1,276

213

Residence-88

Prime Maison HATCHOBORI

1,310

1,350

40

4.5

4.4

4.3

4.2

4.7

4.6

1,155

194

Residence-89

Prime Maison JINBOCHO

1,790

1,790

-

4.5

4.5

4.3

4.3

4.7

4.7

1,635

154

Residence-90

Prime Maison GOTENYAMA EAST

2,570

2,570

-

4.3

4.3

4.1

4.1

4.5

4.5

2,127

442

Residence-91

MAST LIFE AKIHABARA

509

511

2

4.7

4.6

4.5

4.4

4.9

4.8

485

25

Residence-92

Esty Maison AOI

2,280

2,320

40

5.3

5.2

5.3

5.2

5.5

5.4

2,164

155

Residence-93

Esty Maison YAKUIN

2,220

2,260

40

5.1

5.0

5.2

5.1

5.3

5.2

2,089

170

Residence-94

Esty Maison KINSHICHO II

7,560

7,720

160

4.6

4.5

4.4

4.3

4.8

4.7

6,861

858

Residence-95

Esty Maison OJIMA

8,170

8,340

170

4.6

4.5

4.4

4.3

4.8

4.7

7,261

1,078

Residence-96

Prime Maison FUJIMIDAI

1,910

1,930

20

5.4

5.3

5.2

5.1

5.6

5.5

1,799

130

Residence-97

Esty Maison TSURUMAI

4,110

4,160

50

5.5

5.4

5.3

5.2

5.7

5.6

3,889

270

Residence-98

Prime Maison MORISHITA

1,800

1,830

30

4.8

4.7

4.8

4.7

5.0

4.9

1,776

53

Residence-99

Prime Maison SHINAGAWA

1,740

1,790

50

4.7

4.6

4.5

4.4

4.9

4.8

1,728

61

Residence-100 Prime Maison ODORI KOEN

2,870

2,980

110

5.4

5.2

5.2

5.0

5.6

5.4

2,745

234

Residence-101 Prime Maison MINAMI 2-JO

1,700

1,780

80

5.5

5.3

5.3

5.1

5.7

5.5

1,528

251

Residence-102 Prime Maison KAMOKAMOGAWA

1,110

1,160

50

5.5

5.3

5.3

5.1

5.7

5.5

1,011

148

Residence-103 Prime Maison CENTRAL PARK (Note 5)

2,273

2,273

-

5.5

5.4

5.2
(Note 5)5.2
(Note 5)

5.6

5.5

2,326

-53

Residence-104 MAST LIFE YAHIRO

1,720

1,770

50

5.0

4.9

4.8

4.7

5.2

5.1

1,729

40

Residence-105 Prime Maison EBISU

3,920

4,070

150

4.4

4.3

4.2

4.1

4.6

4.5

3,672

397

Residence-106 Esty Maison SHIBAURA

2,780

2,780

-

4.5

4.5

4.3

4.3

4.7

4.7

2,850

-70

Residence-107 Granmast KANAZAWA NISHIIZUMI

-

1,050

-

-

5.6

-

5.4

-

5.8

1,069

-19

Residence-108 Granmast UNOMORI

-

771

-

-

5.6

-

5.4

-

5.8

788

-17

Residence-109 Esty Maison TSUTSUJIGAOKA

-

909

-

-

4.9

-

5.0

-

5.1

926

-17

Residence-110 Esty Maison KOHOKU TSUNASHIMA

-

2,708

-

-

4.9

-

4.7

-

5.1

2,882

-174

180,613

189,194

3,143（Note 6）

4.9

4.8

4.8

4.7

5.1

5.0

172,889

16,304

Residence Subtotal

55

List of Fiscal Period-End Estimated Values (5)Period-end estimated value(million yen)
Property No.

Direct capitalization rate (%)

Property Name
As of Mar. 31,
2015

As of Sept. 30,
2015
2,440

Change(million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Mar. 31,
2015

As of Sept. 30,
2015

As of Mar. 31,
2015

As of Sept. 30,
2015

As of Mar. 31,
2015

As of Sept. 30,
2015

191

6.5

6.4

6.2
(Note 8)6.1
（Note 8）

6.6

6.5

Balance sheet
amount(million yen)

Unrealized
gain/loss(million yen)

Retail-1

HAMAMATSU Plaza (Note 7)

2,249

3,631

-1,191RINKU
HAGURAZAKI
Plaza (Note 9)

Assigned Part

1,150

-

-

-

-

-

-

-

-

-

-

Retail-3

Continuous
Ownership Part

3,960

4,010

50

-

-

-

-

-

-

3,653

356

Retail-4

b-town MINAMIAOYAMA

1,120

1,140

20

4.4

4.3

4.4

4.3

4.5

4.4

1,501

-361

Retail-5

KOJIMA × BIC CAMERA
Kamifukuoka store

1,120

1,140

20

6.1

6.0

5.9

5.8

6.3

6.2

1,247

-107

Retail-7

b-toss IKEBUKURO (Note 10)

1,720

-

-

4.9

-

4.9

-

5.0

-

-

-

Retail-8

Joy Square YUGAWARA

1,540

1,580

40

6.3

6.2

6.2

6.1

6.5

6.4

1,702

-122

Retail-9

Bell Plaza Shopping Center

1,190

1,190

-

6.2

6.1

6.1

6.0

6.3

6.2

1,375

-185

14,04911,500321（Note 6）

5.7

5.8

5.6

5.7

5.9

5.9

13,113-1,612200,694

3,464（Note 6）

5.0

4.9

4.8

4.7

5.2

5.1

186,002

14,691Other real estate in trust （retail properties） Subtotal
Portfolio Total

194,662

Note 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 while “Balance sheet amount” is the amount recorded on thebalance sheet as of September 30, 2015 for assets owned at the end of the fiscal period ended September 30, 2015 (the 20th fi scal period).
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: 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 March 31, 2015, the property’s discount rateuntil the expiry of the contract is 5.2% and its discount rate after the expiry of the contract is 5.4%, while in calculating the period-end estimated value as of September 30, 2015, the property’s discount rate until the expiry of the contract is 5.1%
and its discount rate after the expiry of the contract is 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 theperiod-end estimated value as of March 31, 2015 the property’s discount rate until the expiry of the contract is 5.2% and its discount rate after the expiry of the contract is 5.4%, while in calculating the period-end estimated value as of
September 30, 2015, the property’s discount rate until the expiry of the contract is 5.1% and its discount rate after the expiry of the contract is 5.3%. For the sake of convenience, the above chart shows the discount rates until the expiry of thecontracts.
Note 5: 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 March 31, 2015 and the fiscal period ended September 30, 2015 by the DCF method.
Note 6: 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 March 31, 2015 (the19th fiscal period) (excluding the four properties acquired, the one property assigned and part of RINKU HAGURAZAKI Plaza assigned in the period ended September 30, 2015 (the 20th fiscal period)). For details of RINKU HAGURAZAKI Plaza,please also refer to below (Note 9).
Note 7: 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 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 assigned 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 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% quasico-ownership interest of the Hamamatsu Plaza East Xebio Building and Other Portions and do not include the portion that was assi gned. Furthermore, a store Ito-Yokado Co., Ltd. operated in Ito-Yokado Building had been closed on January 18,
2015.
Note 8: As for Hamapla & Frespo Building located in the Hamamatsu Plaza East indicated above (Note 7), 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 March 31, 2015 and September 30, 2015 are calculated to be 5.3% and 5.2%, respectively, using the DCF method.
Note 9: RINKU HAGURAZAKI Plaza is a commercial facility comprised of three sections. The Investment Corporation acquired them on July 28, 2005 for ¥4,697 million and started operations, but one of three sections was assigned on April 28, 2015.
The Investment Corporation owned two sections at the end of the fiscal period ended September 30, 2015 (the 20th fiscal period). Consequently, “Period-end estimated value as of Sept. 30, 2015”,”Blance sheet amount” and “Unrealized
gain/loss” are for two sections and do not include the part of RINKU HAGURAZAKI Plaza assigned. Furthermore, as for RINKU HAGURAZAKI Plaza, “Direct capitalization rate,” “Discount rate” and “Terminal capitalization rate” are not indicatedbecause 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
March 31, 2015
September 30, 2015
(the 19th FP)(the 20th FP)
5.5‒6.2*

5.4-6.0** In the period ended March 31, 2015 (the 19th fiscal period) and the period ended September 30, 2015 (the 20th fiscal
period), there were three buildings and two buildings, respectively, on the property which are evaluation objects and thediscount rate in the DCF method differs according to contract conditions and such.

Note 10: b-toss IKEBUKURO had been assigned on June 12, 2015.

56

Overview of Interest-Bearing Debt (1)As of date of document■ Loans

Long-Term loans payable

Current portion of
long-termloans payable

Short-TermloanspayableLenderMizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Subtotal
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Subtotal
Aozora Bank, Ltd.
Shinkin Central Bank
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Limited.
Development Bank of Japan Inc.
The Bank of Fukuoka, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Yamaguchi Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Norinchukin Bank
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation

Drawdown Date

March 31, 2015

April 2, 2015

October 1, 2015

May 9, 2011

January 15, 2015

July 10, 2015

March 2, 2012

March 8, 2012

August 2, 2012

August 2, 2012

Balance as of date of document(Note 1)¥950 million¥950 million¥950 million¥600 million¥600 million¥600 million¥400 million¥400 million¥400 million¥5,850 million¥2,000 million¥425 million¥425 million¥200 million¥200 million¥300 million¥700 million¥700 million¥700 million¥700 million¥6,350 million¥100 million¥100 million¥200 million¥200 million¥200 million¥100 million¥100 million¥300 million¥200 million¥1,200 million¥500 million¥400 million¥1,100 million¥1,300 million¥500 million¥941 million¥1,470 million¥1,470 million¥2,352 million¥176 million¥176 million

Interest Rate
(Note 2)

Fixed/Floating

Repayment Date

Use

Collateral

0.30500%

Floating

February 29, 2016

(Note 3)

Unsecured

0.30500%

Floating

February 29, 2016

(Note 3)

Unsecured

0.30500%

Floating

August 31, 2016

(Note 3)

Unsecured

1.57000%

Fixed

February 29, 2016

(Note 4)

Unsecured

0.33000%

Floating

February 29, 2016

(Note 3)

Unsecured

0.30500%

Floating

August 31, 2016

(Note 3)

Unsecured

1.18975%

Fixed(Note 5)February 28, 2017

(Note 3)

Unsecured

1.19475%

Fixed(Note 5)February 28, 2017

(Note 6)

Unsecured

1.15475%

Fixed(Note 5)February 28, 2019

(Note 4)

Unsecured

0.95750%

Fixed(Note 5)

August 31, 2017

(Note 4)

Unsecured

57

Overview of Interest-Bearing Debt (2)LenderDrawdown Date

Sumitomo Mitsui Banking Corporation

February 8, 2013¥750 million¥750 million

Mizuho Bank, Ltd.

¥400 million
February 28, 2013

¥1,700 million

Resona Bank, Limited.

¥500 million

The 77 Bank, Ltd.

¥500 million
February 28, 2013¥100 million

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥500 million

Mitsubishi UFJ Trust and Banking Corporation¥500 million

Aozora Bank, Ltd.

¥200 million

Shinkin Central Bank

¥200 million

Mizuho Bank, Ltd.

¥300 million
March 1, 2013¥300 million

Sumitomo Mitsui Trust Bank, Limited¥200 million

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥700 million

Mitsubishi UFJ Trust and Banking Corporation¥500 million

Aozora Bank, Ltd.

¥1,000 million

Mizuho Bank, Ltd.

¥500 million
August 30, 2013

¥2,500 million

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥600 million

Mitsubishi UFJ Trust and Banking Corporation¥200 million

Resona Bank, Limited.

¥500 million

Aozora Bank, Ltd.

¥500 million
August 30, 2013¥200 million

Sumitomo Mitsui Banking Corporation¥1,100 million

Sumitomo Mitsui Trust Bank, Limited¥500 million

Mizuho Bank, Ltd.

¥300 million

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

February 28, 2019

(Note 3)

Unsecured

1.02225%

Fixed(Note 5)February 28, 2020

(Note 4)

Unsecured

0.75600%

Fixed(Note 5)(Note 4)

Unsecured

0.65475%

Fixed(Note 5)February 28, 2017

(Note 3)

Unsecured

1.17200%

Fixed(Note 5)

August 31, 2020

(Note 4)

Unsecured

0.57091%

Floating

August 31, 2018

1.17350%

Fixed(Note 5)February 28, 2022

February 28, 2018¥200 million

Mizuho Bank, Ltd.

Sumitomo Mitsui Trust Bank, Limited

Fixed(Note 5)¥200 million

Mizuho Trust & Banking Co., Ltd.

Sumitomo Mitsui Banking Corporation

0.89900%¥200 million

Resona Bank, Limited.

Mizuho Trust & Banking Co., Ltd.

Collateral¥400 million

Mizuho Trust & Banking Co., Ltd.

Sumitomo Mitsui Trust Bank, Limited

Use¥500 million

The Hiroshima Bank, Ltd.

Sumitomo Mitsui Banking Corporation

Repayment Date

¥2,142 million

Mitsubishi UFJ Trust and Banking Corporation

Mizuho Bank, Ltd.

Fixed/Floating¥500 million

Mizuho Trust & Banking Co., Ltd.

Long-Term loans payable¥2,250 million

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Interest Rate
(Note 2)¥750 million

Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.

Balance as of date of document(Note 1)January 31, 2014¥300 million¥400 million(Note 4)(Note 3)

Unsecured

Unsecured¥800 million

58

Overview of Interest-Bearing Debt (3)LenderDrawdown Date

Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking Corporation

Long-Term loans payable

February 28, 2014

¥980 million¥500 million¥1,500 million¥500 million

Resona Bank, Limited.
The Senshu Ikeda Bank, Ltd.
Mizuho Bank, Ltd.

¥800 million¥500 million¥400 million

Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation¥500 million¥500 million

Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking Corporation
The Yamaguchi Bank, Ltd.
Resona Bank, Limited.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Shizuoka Bank, Ltd.
Shinkin Central Bank
The Bank of Fukuoka, Ltd.

February 28, 2014

February 28, 2014

March 28, 2014

August 29, 2014

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation

August 29, 2014

Aozora Bank, Ltd.
The Senshu Ikeda Bank, Ltd.
The Shizuoka Bank, Ltd.
The 77 Bank, Ltd.
Shinkin Central Bank
The Norinchukin Bank
The Hiroshima Bank, Ltd.
The Bank of Fukuoka, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
The Yamaguchi Bank, Ltd.
Resona Bank, Limited.

Repayment Date

Use

Collateral

1.11000%

Fixed(Note 5)February 28, 2022

(Note 4)

Unsecured¥500 million

0.95225%

Fixed(Note 5)(Note 4)

Unsecured¥500 million¥500 million¥405 million¥1,145 million¥500 million

0.79614%

Fixed(Note 5)(Note 4)

Unsecured¥500 million¥500 million

0.97300%

Fixed(Note 5)(Note 3)

Unsecured

0.96475%

Fixed(Note 5)

August 31, 2022

(Note 4)

Unsecured

0.83600%

Fixed(Note5)

August 31, 2021

(Note 4)

Unsecured

0.86650%

Fixed(Note5)February 28, 2023

(Note 4)

Unsecured¥300 million

Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.

Mizuho Bank, Ltd.

Fixed/Floating

February 26, 2021

¥500 million

Mizuho Bank, Ltd.

Sumitomo Mitsui Banking Corporation

Interest Rate
(Note 2)¥400 million

Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation

Balance as of date of document(Note 1)February 27, 2015

¥300 million¥2,500 million¥2,000 million¥900 million¥2,450 million¥1,950 million¥200 million¥200 million¥200 million¥200 million¥200 million¥500 million¥200 million¥700 million¥1,000 million¥800 million¥600 million¥300 million¥800 million¥500 million¥200 million¥500 million

February 28, 2020

February 26, 2021

59

Long-Term loans payable

Overview of Interest-Bearing Debt (4)LenderDrawdown Date

Balance as of date of document(Note 1)Development Bank of Japan Inc.

February 27, 2015

¥1,000 million

The Norinchukin Bank

¥800 million

The Bank of Fukuoka, Ltd.

¥500 million

Mizuho Bank, Ltd.

February 27, 2015

Sumitomo Mitsui Banking Corporation¥500 million¥500 million

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥300 million

Resona Bank, Limited.

¥750 million

The Senshu Ikeda Bank, Ltd.

¥500 million

The Shizuoka Bank, Ltd.

¥500 million

The 77 Bank, Ltd.

¥500 million

Shinkin Central Bank

February 27, 2015

The Norinchukin Bank

¥500 million¥500 million

The Hiroshima Bank, Ltd.

¥500 million

Mizuho Bank, Ltd.

¥600 million

Interest Rate
(Note 2)

Fixed/Floating

Repayment Date

Use

Collateral

0.85250%

Fixed

February 28, 2023

(Note 4)

Unsecured

0.73975%

Fixed(Note 5)February 28, 2022

(Note 4)

Unsecured

0.62800%

Fixed(Note 5)February 26, 2021

(Note 4)

UnsecuredInterest Rate
(Note 2)

Fixed/Floating

Redemption Date

Use

Collateral(Note 3)(Note 4)

Unsecured(Note 4)

Unsecured(Note 4)

Unsecured¥300 million

Sumitomo Mitsui Banking Corporation
Subtotal¥81,459 million

Total loans¥87,309 million■ Investment Corporation Bonds
Date of issuance

Balance as of date of document(Note 1)First 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

Name

Total Investment Corporation Bonds¥14,500 million

Total interest-bearing debt

¥101,809 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: Acquisition funds for trust beneficiary interest in real estate.
Note 4: Repayment funds for existing borrowings.
Note 5: 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 6: Redemption funds for the Second Series Unsecured Investment Corporation Bonds issued in March 2007 (private placement limited to qualified institutional investors).

60

Overview of Unitholders as of September 30, 2015
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)245,758

24.13

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

84,584

8.30

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

59,358

5.83

Sekisui House Ltd.

39,000

3.83

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

36,128

3.54

Nomura Bank (Luxembourg) S.A

23,035

2.26

THE FUJI FIRE AND MARINE INSURANCECOMPANY, LIMITED

20,630

2.02

Financial Institutions(including securities companies)
133 (1.11%)

Other domestic firms

Foreign firms

Individuals and others

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%)

127 (1.09%)
262 (2.26%)
104 (0.90%)
Sept. 30, 2014
11,612 unitholders

11,119 (95.75%)

0%

20%

40%

60%

80%

100%

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

The Hachijuni Bank, Ltd.

19,754

1.94

Mizuho Trust & Banking Co., Ltd.

18,8301.84

BNY for GCM Client Accounts (E) BD

15,416

1.51

562,493

55.24

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

Mar. 31, 2015
1,018,110 units

669,049 units(65.71%)

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

Sept. 30, 2014
915,240 units

571,655 units(62.46%)88,186 units
136,685 units(9.64%)(14.93%)
118,714 units(12.97%)■The status of large holdings as determined by the large share holdings reports (including
reports of changes) submitted by November 12, 2015 is as follows.
Name

Mizuho Trust &Banking Co., Ltd.

Sumitomo Mitsui
Trust Bank, Limited

Mitsubishi UFJ
Financial Group, Inc.

Total units held

98,507 units

114,918 units

40,713 units

Total percentage ofownership

10.76%

11.29%

4.00%

Submission date

October 22, 2014

August 31, 2015

September 24, 2015

91,822 units
124,902 units(9.02%)(12.27%)
117,126 units(11.50%)684,260 units(67.21%)

Sept. 30, 2015
1,018,110 units

0%

20%

40%

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.

61

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

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

（Units）
30,000
Trading volume
25,00020,00015,00010,000
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

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.

62

Memo

63

64