Financial Results for the 17th Fiscal Period Ended July 2024

Star Asia Investment Corporation

Star Asia Investment Corporation(Securities CODE 3468)
Star Asia Investment Management

Contents

Characteristics of Star Asia Investment Corporation (SAR)

1. Diversified REIT

Portfolio developed with diversified assets located mainly in the Tokyo Area*

1.

Executive Summary2

2.

Actual Distribution and Forecasts for Operating Results

4

2. Steady growthPursuit of internal growth by the Asset Manager with abundant experience and know-how aswell as external growth based on asset managed by the Star Asia Group

3. Initiatives focusing on unitholder value
Continuous implementation of “out-of-the-box” dynamic asset allocation

3.

7th Public Offering and 11th Assets Replacement

94.

Progression Status of Mid-term plan

125.

Operating results for the FP17 ended July 2024

18

6.

Overview of Newly Acquired Assets

32

7.

Initiatives on ESG

37

8.

Appendix

43

Prioritized, focusedinvestment in theTokyo Area*

69

Investment ratio 70%±10％
or higher in theTokyo Area

9.

Note

Investment policy

Achieving income
stability and growththroughdiversification ofasset type

Investment
primarily in
middle-size assets**

Unless otherwise stated within this document, references to all monetary amounts have been rounded down to the nearest monetary unit described, and ratios have been rounded to the decimal point described.
In this document, Star Asia Investment Corporation may be referred to as "SAR"＊ “Tokyo area”: “Tokyo area” refers to Tokyo and the three prefectures of Kanagawa, Saitama and Chiba.
＊ “Middle-size assets” are properties with acquisition prices of less than JPY10bn.

11. Executive Summary2

1. Executive Summary
Overview of FP17

Forecasts for FP18 / FP19

Initial Forecast

Actual Results

differencechange ratio

Distribution per unit*

1,520 yen

1,596 yen

+76 yen+5.0％

Earnings Per unit**

1,465 yen

1,546 yen

+81 yen+5.5％

Rents fromhotel properties

1,877 mn

2,038 mn

+161 mn+8.6％

Performance Indicators（55 yen）（50 yen）

 Forecasted Distributions Per Unit
FP18

1,538 yen (37 yen）

FP19

1,553 yen (33 yen）

* The figure in brackets ( ) for DPU is the amount for which internal reserves have been utilized.

 Growth Drivers for FP18 and Beyond⁃ Distribution per unit: +5.0% / 1,596 yen, due to 5.5% increase in net income(mainly due to rental income from hotels)[1] Increase rents from the hotel portfolio. (especiallyfrom the 4 newly acquired hotels)⁃ Rental income from hotel portfolio (16 properties in total): +8.6% compared to forecast…Rental income from 7 hotels managed by Polaris acquired in Sept.2023: +12.1% compared to forecast⁃ Achieved increase in office rents: 3.6% decrease upon entry of new tenants, 2.7% increase upon contract
renewals (total increase of 2,528 thousand yen /month)[2] Increase revenues from Suroy Mall Chikushino: inthe short-term, by attracting new tenants; in the midterm, by increasing rents from existing tenants and bybuilding expansion.

⁃ Achieved rent increase for residences: 8.4% increase upon entry of new tenants, 1.7% increase upon contract
renewals (total increase of 1,880 thousand yen/month)[3] Residential: increase rents and improve occupancy
rates.

⁃ Realized increase in asset size through public offering and asset replacement: 276.5 bn yen (as of Sept. 6,
2024)⁃ Expansion of the incorporation ratio of hotels with high inflation resistance / 29.0% → 37.5% (the largest ratio
within the portfolio)(Rent increase is not assumed in the forecast.)[4] Offices: increase rents and improve occupancy
rates.
(Rent increase is not assumed in the forecast.)

Summary of 7th Public Offering &11th Asset Replacement and Progression Status of Mid-term plan
＜Summary of 7th Public Offering &11th Asset Replacement＞＜Progression Status of Mid-term plan＞

 Acquired six assets of total amount 35.9 bn yen in August 2024
 Asset size has expanded to 276.5 bn yen (as of Sept. 6, 2024)
 Newly acquired assets: mainly high asset value hotels in central Tokyo The 12 hotels managed by Polaris, including the 4 newly acquired hotels, havea relatively high GOP margins, and are expected to contribute to internal growththrough increased rents calculated based on GOP.
 Average building age has improved to 20.4 years, while maintaining the portfolio's
appraised NOI yield, through acquiring newer properties and transferring two older
properties. (as of September 6, 2024）(Previously 24.9 years *as of the end of January 2024）

 Asset size target: 300 bn yen
 Expansion of asset size, since formulating the mid-term plan: 108.7 bn yen
 Asset size after 7th public offering: 276.5 bn yen
 Aiming to achieve the asset size target by leveraging the proprietary network of
the asset manager, in addition to support by Star Asia Group Distribution per unit (DPU) target: 1,600 yen FP17 actual: 1,596 yen, FP19 forecast: 1,553 yen
 Aim to achieve the target by leveraging internal growth drivers of the portfolio.

32．Actual Distribution and
Forecasts for Operating Results

4

2. Actual and forecasted distribution (1)Actual distributions for FP17 ended July 31, 2024

 In FP17, rental income from hotels (particularly from Polaris-operated hotels) significantly exceeded forecasts, and actual
distribution per unit increased by 5.0% compared to initial forecast.
 Going forward, we anticipate internal growth through rental income from the 4 newly acquired Polaris-operated hotels, aiming toincrease distribution per unit.

FP18(ending Jan. 2025)-Forecast-

FP17(ended July 2024)-Actual-1,538 yen

1,596 yen
+ 76 yen (+5.0%) vs forecast
utilization ofinternal reserve： 50 yen

utilization ofinternal reserve： 37 yen

FP19(ending July 2025)-Forecast-≪ Our Policy to Maintain Distributions per unit ≫ Policy to maintain the distribution per unit for
the FP19 as the lower limit

1,553 yen

On and after FP19

utilization ofinternal reserve：33 yen

maintain< P/L from Leasing
Business >・Increase in Rents
from newly acquired
Properties
・Increase in Office
Properties( yen）<Non-operating
Expenses>
Decrease in
Finance Costs<P/L from
Leasing
Business>
・Increase in
Hotel Variable
Rents etc.

<Internal
Reserve>
Decrease inusing Internal
Reserves

1,553 yen

<Gain on sales>
Sales of Urban
Park Namba andSmile Hotel
Namba< P/L from Leasing
Business >・Acquisition ofproperties during
FP18
・Decrease in
Logistics Rents
・Conservative
Budget of existing
Hotels<Non-operating<Internal
Reserve>
Decrease inusing Internal
Reserves<P/L from Leasing
Business>
・Stripped Gain on
sales of Urban
Park Namba andSmile Hotel
Namba<Non-operating
Expenses>
Decrease of
Finance Costs<Internal
Reserve>
Decrease inusing Internal
Reserves

Expenses>
Increase in
Finance Costs

P/L from Leasing Business
DPU/17FP Forecast

OthersNon-operating Expenses

DPU/17FP result
Internal Reserve

P/L from Leasing Business

Gain on sales

OthersNon-operating Expenses

DPU/ FP18 Forecast
Internal Reserve

P/L from Leasing Business

Gain on sales

OthersNon-operating Expenses

Forecast DPU/FP19
Internal Reserve52. Actual and forecasted distribution (2)Factors for increase/decrease compared with forecast/actual results for the FP17
 Variable rents from the 7 hotels acquired in FP16 significantly increased / Total rents received from the 7 hotels: 8.6% increase
compared to forecast.
 Amid soaring construction-related costs, achieved optimization of repair costs and capital expenditures through adequate cost
(unit : mn)
controls.
FP17 (ended Jan2024) forecast *Lease business revenue
Office rent
Retail rent
Residence rent
Logistics rent
Hotel rent
Other
Expenses related to rent business (Depreciation
is excluded)
NOI
Depreciation
Rent revenues/expenses
Capex
NCF(NOI-CAPEX)
Gain on sales
Mezzanine
Income from securities lending fees
SGA
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Income before income taxes
taxes
Net income
Cash distribution per unit
FFO per unit
AFFO per unit
Balance of internal reserves(Reference) Net income per unit( yen per unit) **FP17 (ended Jan2024) ActualComparison with forecast

7,894
2,137
1,046
1,265
914
1,877
652

8,048
2,133
1,040
1,260
914
2,038
660

+153
△4
△6
△4
+161
+7

+1.9%
△0.2%
△0.7%
△0.4%
0.0%
+8.6%
+1.2%

2,051

2,021

△30

△1.5%

5,842
1,034
4,807
867
4,975
33
31
713
4,159
681
3,477
3,477
0
3,476
1,520 yen
1,902 yen
1,536 yen
8,612

6,026
1,034
4,992
774
5,252
34
31
719
4,338
2
671
3,669
3,669
0
3,668
1,596 yen
1,982 yen
1,656 yen
8,624

+184
+0
+184
△93
+277
+0
+5
+179
+2
△10
+192
+192
+192
76 yen+80 yen+120 yen
+11

+3.1%
△0.0%
+3.8%
△10.8%
+5.6%
+2.7%
0.0%
+0.8%
+4.3%
△1.5%
+5.5%
+5.5%
0.0%
+5.5%
+5.0%
+4.2%
+7.8%
+0.1%

1,465 yen

1,546 yen

81 yen+5.5%* Initial forecast disclosed in “(REIT) Financial Report for Fiscal Period Ended January 31, 2024” announced on March 15, 2024

Factors for the increase/decrease＜Lease business revenue ＞【Hotel】 Increase in variable rents linked to GOP/Revenue＜Non-operating expenses＞
Decrease in finance costs △9.8mn

62. Actual and forecasted distribution (3)Forecast of business results for FP18 ending January 2025 / FP19 ending July 2025
 One property acquired on August 16, 2024 and 4 properties newly acquired through public offering etc. (acquired on August 30,2024) will fully contribute starting from FP19 (ending July 2025).
(unit : mn)
FP17Actual(Ａ)
Lease business revenue
Office rent
Retail rent
Residence rent
Logistics rent
Hotel rent
Other

Expenses related to rent business(Depreciation is excluded)
NOI

FP18
Forecast(B)

Increase/decrease(B-A)

Major factors for the increase/decrease(VS FP17 Actual)

+710
△0
+23
+2
+1
+630
+52

+8.8% ＜Lease business revenue＞△0.0% 【Office 】
Hakata-eki East Place △20mn+2.3%
Urban Center Kanda Tsukasamachi +9mn
+0.2%
Urban Center Shibuya East +8mn
+0.1% 【Retail 】
Urban Forum Warabi acquired in FP18
+30.9% +23mn+7.9% 【Hotel 】

8,913
2,164
1,070
1,256
892
2,845
683

+155
+31
+6
△7
△23
+175
△28

+1.8% ＜Lease business revenue＞+1.5% 【Office】
Increase in occupancy rate
+0.7%
(Shinjuku, Hakata-eki EP, Tachikawa etc.)△0.6% 【Logistics 】
Termination △27mn△2.6%【Hotel 】+6.6%
4 hotels acquired in FP18 +174mn
△4.0%

2,021

2,174

+153

+7.6%

2,079

△95

△4.4% ＜Rent expenses＞

4 hotels acquired in FP18 +703mn
Smile Hotel Namba transferred △33mn

FFO per unit

1,982 yen

1,810 yen △172 yen

AFFO per unit
Balance of internal reserves

1,656 yen
8,624
8,048

1,484 yen △172 yen
8,527
△97
8,758
+710

＜Non-operating expenses＞△10.4%
Interest expenses +157mn△1.1%
Borrowing cost +136mn

1,546 yen

1,501 yen △45 yen

CAPEX
NCF(NOI-CAPEX)
Gain on sales
MezzaninePreferred securities lending fee
SGA
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Income before income taxes
Taxes
Net income(Reference) Net income per unit
(yen per unit)*

Major factors for the increase/decrease(VS FP18 Forecast)

8,758
2,132
1,064
1,263
916
2,669
712

Cash distribution per unit

Rent revenues/expenses

Increase/decrease
(C-B)

8,048
2,133
1,040
1,260
914
2,038
660
6,026
1,034
4,992
774
5,252
34
31
719
4,338
2
671
3,669
3,669
0
3,668
1,596 yen

Depreciation

FP19
Forecast
(C)

6,583
+556
+9.2%
＜Other＞
1,142+107+10.4%
Utility revenue +38mn
5,440
+448
+9.0%
Restoration +30mn
Deposit △7mn873
+99
+12.8%
Insurance △5mn
5,709
+457
+8.7%
314
+314
- ＜Rent expenses＞
5 properties acquired in FP18 +20mn
37
+2
+7.2%
2 properties transferred in FP18 △10mn
31
+0
+1.1%
Repair expenses +80mn
Utility expenses +32mn
819+100+14.0%
Leasing related expenses +28mn
5,003
+665
+15.3%△2 △100.0% ＜Gain on sales＞
967+296+44.2% Urban Park Namba and Smile Hotel Nambatransferred in FP18
4,035
+366
+10.0%
4,035+366+10.0% ＜SGA＞
0
0.0% Asset management fees +88mn
4,035
+366
+10.0% Taxes and public dues
(Non-deductible consumption taxes, etc.)
1,538 yen △58 yen
△3.6%
△8.7%

+23mn

6,833
1,167
5,666
899
5,934
36
30
800
4,934
847
4,086
4,086
0
4,086
1,553 yen+250
+3.8% 5 properties acquired in FP18 +48mn
2 properties transferred in FP18 △6mn
+24
+2.1% Leasing related expenses △62mn+226+4.2% Repair expenses △59mn
△10mn
+25
+2.9% Utility expenses
+224
+3.9%
△314 △100.0% ＜Gain on sales＞
Urban Park Namba and Smile Hotel△0△0.9% Namba transferred in FP18
△0
△1.6%
△19
△2.4%
＜SGA＞
△69
△1.4% Asset management fees +14mn- Taxes and public dues△120 △12.4% (Non-deductible consumption taxes, etc.)
△24mn
+50
+1.3%
+50
+1.3%
0.0% ＜Non-operating expenses＞+50+1.3% Interest expenses +12mn
Borrowing cost △132mn+15 yen+1.0%

1,955 yen +145 yen

+8.0%

+8.8%

1,620 yen +136 yen
8,440
△86
8,913
+155

+9.2%
△1.0%
+1.8%

△2.9%

1,520 yen

+1.3%

* EPU is calculated by dividing net income by the total number of investment units issued and outstanding (FP18 ending January 2025).

+19 yen7

2. Actual and forecasted distribution (4)NOI (amount / yield) by asset types
 Achieved bold asset allocation reading ahead market conditions. / NOI ratio of hotels, which are inflation-responsive assets,rose to more than 36%.
FP162024/01
ActualNOI ratioby asset types*

Hotel ,
27.2%
Logistics,
12.9%

NOI

Hotel ,
29.6%

Office ,29.9%

Residence,
16.4%(thousand yen)FP172024/07
ActualRetail ,13.6%
Logistics,
13.1%

NOI yield

FP18
2025/01
Forecast

Office ,28.3%

Residence,
16.2%

NOI

Hotel ,
36.3%

Retail ,12.8%

NOI yield(thousand yen)

Logistics,
11.5%

Office ,25.9%

Residence,
14.6%

NOI

FP19
2025/07
Forecast

Retail ,11.7%

Logistics,
11.0%

Residence,
14.2%

NOI

NOI yield(thousand yen)

Office ,26.3%

Hotel ,
36.7%

Retail ,11.9%

NOI yield(thousand yen)

Office1,659,826

4.4%

1,697,684

4.6%

1,706,013

4.6%

1,795,332

4.8%

Retail

753,518

5.4%

772,926

5.6%

769,953

5.3%

813,133

5.6%

Residence

906,378

4.7%

983,178

5.0%

961,175

5.1%

967,383

5.2%

Logistics

716,4854.8%

788,9495.3%

754,586

5.0%

749,136

5.0%

Hotel

1,505,805

4.3%

1,784,094

5.1%

2,391,600

4.7%

2,508,963

4.9%

Office5,542,013

4.6%

6,026,832

5.0%

6,583,327

4.8%

6,833,947

5.0%

DPU

（1,513yen: forecast announced
on Aug. 7, 2023）

1,524yenc

1,596yen（1,520yen: forecast announced
on Mar.15, 2024）-（forecast 1,538yen）-（forecast 1,553yen）*

The ratio of NOI amount for each asset type to the total NOI amount of the portfolio.

8

3. 7th Public Offering
and 11th Assets Replacement93. 7th Public Offering and 11th Assets Replacement (1)Assets acquired and transferred
Total acquisition price*

35,800mn

Total Appraisal value*

39,840mn

Average
Appraisal NOI yield*

KOKO HOTEL
Tsukiji Ginza

KOKO HOTEL
Residence
Asakusa
Kappabashi

Asset type

KOKO HOTEL
Residence
Asakusa
Tawaramachi

3,500mn

4.6％

Asset Acquired (Mezzanine)

Assets Acquired (Real Estate Properties, etc.)
Property
nameTotal transfer price

KOKO HOTEL
Osaka
Shinsaibashi

Hotel

Urban Forum
Warabi
RetailNameStar Asia Mezzanine Loan
Debt Investment Series 9Underlying
Assethotel androoms
Shin-Osaka

Acquisition
price

130mn

Interest
rate

Base rate +5.0%

Assets Transferred
Location
Construction
completion

Chuo-ku, Tokyo
Dec. 2020

Taito-ku, Tokyo
Nov. 2020

Taito-ku, Tokyo
Nov. 2021

Chuo-ku, Osaka-shi,
OsakaApr. 2005

Kawaguchi-shi,
Saitama
Dec.2023

Acquisition
price

17,000mn

Appraisalvalue

18,800mn

5,060mn

6,780mn

7,990mn

1,210mn

Appraisal NOI
yield

4.4%

5.0%

4.9%

4.6%

4.7%

Operator

4,300mn

5,900mn

7,500mn

Polaris Holdings Group
KOKO HOTELSFINO HOTELSFINO HOTELS

KOKO HOTELS*Mezzanine loan debt is excluded from the calculation of ”Total acquisition price”, “Total Appraisal value” and “Average Appraisal NOI yield.

1,100mn

-

Smile
Hotel
Namba

Name

Urban Park
Namba

Type

Residential(Single-type)

Location

Naniwa-ku,
Osaka-shi,
Osaka

Naniwa-ku,
Osaka-shi,
Osaka

Construction
completion

Jan. 2013

Feb. 2008

4.3%

3.6%

1,700mn

1,800mn

175mn

139mn

ActualNOI yield
Transfer
price
Gain ontransfer(estimated)

Hotel(Limitedservice)10

3. 7th Public Offering and 11th Assets Replacement (2)Portfolio evolution

 Expanded asset size while actively changing the ratio of asset types; the ratio of hotels with high inflation resistance rosesignificantly to 37.5%.
 Realized strengthening of the portfolio while also expanding asset size; average age of buildings rejuvenated to 20.4 years while
maintaining NOI yield.
FP14
FP16
As of September 6, 2024
2023/012024/01
195.2bn yen
Hotel
12.6%
Office38.3%

Logistics
15.6%

Asset size

Residence
19.4%

Retail14.2%

243.8bn yen

Residence forstudents
0.6%

Residence forstudents
0.6%

Hotel
29.0%

Logistics
12.3%

276.5bn yen

Office30.7%

Residence
16.0%

Retail
11.4%

Office
27.1%

Hotel
37.5%

Logistics
10.8%

Retail
10.4%
Residence
13.5%

% of
overall portfolio
properties
in Tokyo Area excl. suburban

71.9

63.6

66.3

78.0

67.9

70.2

Average building age (yrs)

24.5

21.7

20.4

4.8

4.8

4.8

4.1

4.0

4.0

62,26462,63064,513(note1)

retail properties(note 2)Average appraisal
NOI yield (%)(note 3)
Average post-depreciation
appraisal NOI yield (%)(note 4)
NAV per unit (yen)11

4. Progression Status of Mid-Term Plan

12

4. Progression Status of Mid-Term Plan (1)Current status

 Through public offerings conducted for 4 consecutive years, asset size expanded to 276.5 bn yen (74 real estate properties,
and 4 transactions in securities, etc.)
 FP17 actual DPU: 1,596 yen, FP19 forecast DPU: 1,553 yen. Aiming for distribution per unit of 1,600 yen or more, by focusing
on continual internal growth.

Mid-Term Plan （Target year FY2026）
Asset Size ：300 bn yen

Distributions per unit：# of properties 100

of +2% per annum or more

Average annual growth of asset size: 31bn yen

Average annual growth rate of per-unit distribution: 3.0%

from FP11(07/2021) to September 6, 2024

from FP11(07/2021) to FP17(07/2024)（bn yen）

（yen）

243.8

167.7

182.6

182.5

195.2

243.8

276.5

OfficeFP13
2022/7

196.4
1,462

RetailFP14
2023/1

Residence

FP15
2023/7

Logistics

FP16
2024/1Hotel

FP172024/7

1,600

50
1,524

1,437

FP12
2022/1

1,596

1,586
13

300.0

25

FP11
2021/071,600 yen or more

as of
Mid-Term
Sep. 2024
Plan

Residence for students

FP11
2021/7

EPU

1,478
72

1,406

FP12
2022/1

1,476
46

1,430

FP13
2022/7

retained earnings

1,491

37

44
1,599
1,487

1,447

FP14
2023/11,546

FP152023/7FP162024/1FP172024/7

provision for retained earnings

Mid-Term
Plan

DPU

13

4. Progression Status of Mid-Term Plan (2)SAR has Obtained Preferential Negotiation Rights for 12 Hotels Owned by Star Asia Group As of the end of July 2024, Star Asia Group had 148.7 billion yen (total of most recent appraisal value) of properties under management.
SAR has obtained five preferential negotiation rights.
Portfolio owned by Star Asia Group
Hotel, Office,12.5% 11.0%

Other,
27.5%

Logistics,
4.0%

Residential,
72.5%

Hotels (preferential negotiation rights obtained by SAR)
Tokyo,
72.5%

 Three hotels efficiently operated by Polaris Located in core area of each city with convenient transportation, easy tocapture lodging demand as well as to secure human resources

Total
appraisal value*
148.7bn*As of July 31, 2024. Excluding properties for which SAR has preferential negotiation rights, and deals
involving land for development or land under development, etc.

 Star Asia Group has 148.7 billion yen of properties under management (excluding
assets for which SAR has obtained preferential negotiation rights)
 Continuing to acquire properties, by leveraging on the strength of Star Asia Group
which constantly executes investment strategies reading ahead of the market.
 SAR is considering external growth, with Star Asia Group’s properties undermanagement as a pipeline.

Student Residence (preferential negotiation rights obtained by SAR)
■ HAKUSAN HOUSE■ KAMIKITA HOUSE An international standard student residence for which Star Asia Group was involvein its development.
 Provides ample common-use space to facilitate building among residents.
 Living expenses (utility fees etc.) are included in the rent.
 Staff are on-site 24 hours a day, and a concierge service is offered in multiple
languages.

Property name

KOKO HOTEL
Nagoya Sakae

KOKO HOTEL
PremierKanazawa Korinbo

KOKO HOTEL
Premier
Kumamoto

Location

Nagoya city, Aichi

Kanazawa city,
Ishikawa

Kumamoto city,
Kumamoto

Construction dateFebruary 2003

April 2013

September 2019

Type

Limited Service

Limited Service

Limited Service

Rooms

204

207

205

Approx. one minute
walk from Sakae
station, located in
Nagoya's only
downtown areaeasy to capturebusiness and tourist
demandLocated in
Kanazawa, thelargest city in
Hokuriku, where“tradition” and“innovation” coexist,
and captures
business demand
as well as tourist
demand.

Located in the newlandmark “Sakura
Machi Kumamoto”
and captures
business demand
as well as tourist
demand.

Characteristics

14

4. Progression Status of Mid-Term Plan (3)Overview of Star Asia Group Star Asia Group has created an ecosystem for its hotel business comprising an investor (Star Asia Group), operator (Polaris),and owner (SAR)
 SAR aims for continuous external growth, utilizing Sponsor pipeline of 148.7 bn

Ownership
Realization of increased
revenue through efficient
hotel management
Operation

PolarisSAR

Expansion of hotel market
information acquisition
Diversification ofsourcing routes

Asset size：JPY 276.5bn
Number of owned hotels：19

Investment（as of August 19, 2024）

With the expansion of theasset size, more flexible
investment becomes possible

Star Asia Group(Private fund management)

Minacia
Eco system ofStar Asia Group

Ensuring financial and humanresource stability by
expanding business scale

Development function
Asset management of private funds
Size of private funds：More than
JPY 148.7bn
Number of owned hotels: 4（as of July 31, 2024）

Providing risk capital withmarket anticipation
15

4. Progression Status of Mid-Term Plan (4)Polaris Holdings – A “Company of Choice” as “Top Tier of Hotel Operators”-

 Continue to build and expand a portfolio with both growth potential and stability, by maintaining a well-balanced combination of
owned properties and operation-commissioned properties.
 Currently discussing future business merger with hotel operator “Minacia”.
Expansion of business scaleCompany overview（rooms）
10,000 Listed on the Tokyo Stock Exchange Standard Market
CODE： 3010
 Manages 47 hotels / 8,205 rooms (including hotels abroad)as of the end of March 2024
 Operates multiple hotel brands including the main brand KOKO Hotels.
 Operates 12 hotels held by SAR.
 Has actively expanded the number of hotels under management evenduring the COVID-19 pandemic and realized revenue increase andreduction of the break-even point.
 Continues to improve occupancy rates without any bottlenecks with thestrategy of securing human resources even during the pandemic.

8,000

300
250
200

Begins operations of
KOKO HOTEL Osaka
Namba heldby SAR

Begins operations of
7 hotels acquiredby SAR

4,000

50
0

292

2,000

100
2,319
682

367

1,234

3,174

1,216

0

FY 03/2020

Company Owned

Fixed Rent

FY 03/2024

Fixed + Variable Rent

Variable Rent

Management Contract# of hotels, rooms and employees
Begins operations of
4 hotels acquiredby SAR In June 2024, Polaris entered into a business alliance contract with
Minacia, another hotel operator, and is currently in discussions with theaim of a future business integration.
 The merger is expected to make Polaris one of the leading operators inJapan with more than 13,000 rooms under management.

150
100

1,930

Total
3,109 rooms

6,000

Trends in share price
（yen）

Total
8,205 rooms# of hotels# of rooms# of employees

Polaris

47

8,205

486

Minacia

39

5,180

922

* The Polaris’s figures for the number of "rooms," "hotels," and “employee" are as set forth in Polaris' Annual Securities Report
filed on June 26, 2024. The figures for the number of "rooms" and "hotels" of Minacia are based on the figures disclosed in theannouncement “Polaris Enters Business Alliance with Minacia Co., Ltd.” disclosed by Polaris on June 26, 2024. And the numberof “employees" is based on the information available on Minacia's website as of July 1, 2024.

16

4. Progression Status of Mid-Term Plan (5)Trends in investment unit price and market capitalization

 SAR executed eight public offerings including IPO and eleven asset replacements since our listing and the merger in 2020.
 Above initiatives allowing SAR’s investment unit price to outperform TSE REIT index by +17.3pt** between the release of our
Mid-term Plan on March 16, 2021 and the end of August 2024.
Listing
Apr. 20, 2016
1st asset
replacement
Dec. 5, 2016

1st public offering
Mar. 17, 2017
2nd asset
replacement
Feb. 28, 2017

2nd public offering
Jan. 12, 2018
3rd asset
replacement
July 23, 2018

3rd public offering
Aug. 21, 2018

4th asset
replacement
Aug. 21, 2018

5th asset
replacement
Mar. 2, 2020

MergerAug. 1, 2020
6th asset
replacement
Oct. 5, 2020

4th public offering
Aug. 2, 2021
7th asset
replacement
Nov. 30, 2020

5th public offering
Aug. 1, 2022
8th asset
replacement
Feb. 1, 2023

6th public offering
Aug. 7, 2023

9th asset
replacement
Mar 16, 2023

10th asset
replacement
Aug 7, 2023

11th asset
replacement
Aug 2, 2024

（mn）

Mid-term Planannounced March 16, 2021
53,400 yen

150%

7th public offering
Aug. 19, 2024

200,000

150,000
100%

100,000

50%
50,0000%
2016/4/20

2017/4/20

2018/4/20

2019/4/20

2020/4/20

Market capitalization(Right）

2021/4/20
SAR(Left)

2022/4/20

2023/4/20

2024/4/20

0

TSE REIT(Left)*As of August 31, 2024**The TSE REIT index and unit price of Star Asia Investment Corporation (SAR) are indexed to SAR’s closing price of March 16, 2021. Because we executed a 1 to 2 investment unit split effective August 1, 2020, unit prices
prior to that date have been divided by 2 to account for the split’s impact.

17

5. Operating results for the FP17
ended July 2024

18

5. Operating results for the FP17 ended July 2024 (1)operating results for FP17 and operating strategy for FP18 and FP19

OfficeRetailResidence

Logistics

Hotel

FP17（2024/07）
Operating Results

FP18（2025/01）, FP19（2025/07）
Operating Strategy

 Average occupancy rate 97.0% / Effective occupancy rate 96.1%(compared to FP16 +0.6% / +0.9%)
 21 properties owned, average acquisition price 3.5bn
 Average NOI yield: 4.6%
 Rents increase at new contract and renewal ＋2,528 thousand
yen / month Focus on investing middle-size offices
 Conducting leasing activities with appropriate rents to realize higher rents
rather than aiming for increase in occupancy rate
 Keep realizing rent increase at new contract / renewal taking advantage of theenvironment that SMEs are expected to be able to handle higher rents withthe gradual economic recovery






Average occupancy rate 96.9%(compared to FP16 ▲0.2%)
Urban retail: 2 properties; suburban retail: 3 properties owned
Average NOI yield: 5.6%
Suroy Mall Chikushino: leasing actively the vacant spaces after'Lopia’ opening / 1 space filled Focus on investing in urban retail properties located near the station, whileconsider transferring suburban retail properties Suroy Mall Chikushino (suburban retail): Focusing on leasing the vacant
spaces Consider measures to improve profitability at other retail properties owned






Average occupancy rate 96.2%(compared to FP16 +0.6%)
Family type(30㎡ or larger): 93.9%
Average NOI yield: 5.0%
Net rent increase at new contract and renewal:+1,880 thousand
yen / month Invest mainly in family types, while invest selectively in single types
 Aiming for rent increase at new contract / renewal
 Transferred Urban Park Namba (post-depreciation appraisal NOI yield(FP17)3.7%) due to the high frequency of tenant turnover leading to limited potential
for cost reductions, and inability to anticipate improved profitability

Average occupancy rate 98.6%(compared to FP16 ±0%)8 properties owned, average acquisition price 3.7bn
Average NOI yield: 5.3%
Mid-sized logistics properties located within roughly 30 km ofTokyo Station
 Rent increase in one property from Feb. 2024(+3.3%)






 16 properties owned, average acquisition price 4.3bn
 income of hotels, in particular Polaris-operated hotels,
significantly exceeded forecasts by 8.6%
 KPI of the 8 properties operated by Polaris
OCC 86.8%, ADR 10,927yen, RevPAR 9,480yen
 Initiatives for improvement of ADR
Partial twinning of rooms (KOKO HOTEL Ginza 1-Chome and
KOKO HOTEL Kagoshima Tenmonkan)

 Transaction NOI yields in the trading market are still low, and opportunities toacquire logistics facilities are limited, however, will acquire properties whenopportunities arise In discussion with the tenant aiming for re-contract with rent increase in FP19
 Leasing activities underway the space planned to vacate in Mar. 2025,
viewings by 19 companies Keep considering acquisition of hotel properties as key internal growth driver
while roughly maintaining the current ratio (37.5%)
 Consider mainly hotel properties operated by Polaris as well as rare /competitive properties in area or type
 Aim to improve profitability by prompt strategic CAPEX etc., by way of close
communication with Polaris
 Transferred Smile Hotel Namba (post-depreciation appraisal NOI yield(FP17)2.7%) due to the limited potential for performance improvement onward19

5. Operating results for the FP17 ended July 2024 (2) For the portfolio, during FP17 (ending July 2024), the occupancy rate was maintained at 97.5% or higher.
 We focused on increasing rents in accordance with the characteristics of each asset type, while maintaining occupancy ratelevels.
Hotel, 100.0%

100%

Logestics, 98.6%
Total, 97.8%
Office, 97.4%
Residence, 96.9%

95%

Retail, 96.7%

OfficeRetailResidence

Logestics

Hotel

Total

90%

FP14

FP15

FP16

2023/01

2023/072024/01FP17
2024/022024/032024/042024/052024/06

2024/07

average

Office

94.3%

96.9%

96.4%

96.3%

96.9%

96.9%

97.3%

97.1%

97.4%

97.0%

Retail

98.6%

97.9%

97.1%

97.0%

97.0%

97.0%

97.0%

96.6%

96.7%

96.9%

Residence

97.5%

97.1%

94.0%

96.1%

96.6%

95.9%

95.6%

96.3%

96.9%

96.2%

Logistics

98.6%

98.6%

98.6%

98.6%

98.6%

98.6%

98.6%

98.6%

98.6%

98.6%

Hotel

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Total

97.6%

97.9%

97.1%

97.5%

97.7%

97.6%

97.6%

97.6%

97.8%

97.7%
20

5. Operating results for the FP17 ended July 2024 (3)Office / Operating Results, Occupancy Rate and Changes in Tenants
Operating Results

Status of change in tenant<Basic information＞
21 properties, average acquisition price 3.5 bn<Performance for FP17>
 Newly attracted tenants: 6 tenants (rents decreased on average of 3.6%
compared to before) Free rent: Average 2.3 months
 Increase in rents at time of contract renewal: 19 tenants (average of 6.8%
increase compared to before) Net increase in rent +2,528 thousand yen / month (total of new contract andrenewal)<Forecast for FP18 and onwards>
 In FP18, downtime of vacant areas are estimated conservatively
Occupancy rate at the end of the period:
FP17 97.4％ → FP18 97.2％
Average occupancy rate during the period:
FP17 97.0％ → FP18 96.4％*For the calculation of average free rent periods, only the tenants newly entered during the FP17 are extracted.

# of tenants
Rent up

2

Same rent

1

Rent down

2

818.16 ⁃ Average free rent 2,3 months

Unknown1

97.99＜Renewal＞

62

Rent up

19

26,577.80 ⁃ Average rent at renewal +2.7%
12,158.39 ⁃ Rent increase at renewal

Same rent

41

13,963.06

Rent down

2

97.4%

96%

92%

403.18▲3.6%(317 thousand yen/month)

72.8 - All the contract are above market
rents+6.8%(+3,041 thousand yen/month)⁃ Rent decrease at renewal
456.35 ▲6.7%(▲195 thousand yen/month)*Only tenants whose contracts were up for renewal during the FP17

4

＜Leaving＞

599.18Contract Rent Period of Office Portfolio（ ） # of tenants

（㎡）

98%

94%

1,392.13 ⁃ Average rent at new contract

6

Contracted occupancy rate / Effective occupancy rate*
100%

Area(㎡)＜New Contract＞

96.3%
Effective occupancy rate
Occupansy rate90%

10,000

5,000

0

(7)

(19)

(7)

(8)

(14)

(9)

(12)

(12)

(14)

(13)

(10)

(13)

(7)

(13)

(13)

(7)

(10)

(10)

(7)

（8)

（4)

-5,000Area of Move in-10,000*Effective occupancy rate = (Contracted area - Rent-free area) / Leasable area

(4)

FP7
2019/7FP7FP8

2020/1
FP8

FP9

FP10

FP11

FP12

FP13

FP14

Area of Move out
FP15

FP16

FP17

2021/1 FP11
2021/7 FP12
2022/1 FP13
2022/7 FP14
2023/1 FP15
2023/7 FP16
2024/1 FP17
2024/72020/7 FP10
FP921

5. Operating results for the FP17 ended July 2024 (4)Office / Status of Rent Gap and Trends in Unit Rents

Trends in Market Rents and Contract Rents/Average FR Period（ yen）

14,500 Continuous increase in rents have been achieved to resolve the rent gap.
 During FP18, many tenants will reach timing of contract renewals (56 units,
approximately 15,000㎡), which is a good opportunity to increase rents.

Contract Rent Period of Office Tenants（㎡）
30,000less than 0%

0% to 10%74

25,000

Average unit rent（yen/tb）

Market Rent（yen/tb）
14,040（） average free rent period

14,00014,054

13,50013,82013,833

13,855FP14

FP15

FP16 月）（2.4 month）（2.4ヶ（2.5 month）（2.7 month）

70

20,00015,00065

56

10,000
11

5,000
（2.5ヶ

FP17月）（2.3 month）

10% or more

02025/12025/72026/12026/7After
2026/7Addressing leasing issues

Total monthly rent at the end of the period【Urban Center Tachikawa （Tachikawa-shi, Tokyo）】（thousand yen）
Increase

Decrease

Total•

One are is vacantAcquisition price

1,804 mil•Leasing activities are conducted focusing on rents

Structure

RC S 6F/1B•

Multiple tenants have previewed in September 2024

Leasable area

3,400.47㎡

July 2023

Jan. 2024

July 2024

Construction
completion

May 1990

82.3 ％

82.3 ％

82.3 ％【Amusement Media Gakuin Shinkan（Shibuya-ku, Tokyo）】

FP15

New

New
Increase
Increase
Cancellation
FP16 Cancellation
Contract during term
Contract during term

FP17

Acquisition price

1,020 mil

Structure

RC 7F

Leasable area

781.33 ㎡

Construction
completion

Jan 1999•

Received notice of termination dated May 2025•

Currently leased to one tenant and considering measures•

NOI occupies 0.3% of whole portfolio NOIJan. 2024
100.0 ％

July 2024

May 2025

100.0 ％

0%(planned)225. Operating results for the FP17 ended July 2024 (5)RetailOperating Results＜Topics in FP17＞＜基礎情報＞

urban
suburban

Property nameLocation

BAGUS Ikebukuro Westabeno nini (Retail)# oftenants

Toshima-ku, Tokyo1

1,497.45㎡

100.0%

abeno nini (Retail)Osaka-shi, Osaka

5

3,481.03㎡

100.0%

La Park Kishiwada

Kishiwada-Shi,
Osaka

47

41,050.01㎡

97.6%

Seiyu Minakuchi

Koka- hi, Shiga

1

23,814.87㎡

100.0%

Suroy Mall Chikushino

Chikushino-Shi,
Fukuoka

20

31,088.53㎡

92.5%

74

100,931,89㎡

96.7%

total / average

Leasable area

Occupancy rate
as of end of FP

 Stable occupancy during FP17 as expected Suroy Mall Chikushino: contracted with new tenant After end of FP17, the portfolio expanded to 6 properties by acquiring
Urban Forum Warabi located very close to the station＜FP18 onwards＞
 Increase value of three suburban retail properties by realizing internal
growth, considering future sales
 Suroy Mall Chikushino: Continue to lease the vacant spaces
 La Park Kishiwada: Consider renewal and tenant mix to be morecompetitive in the area
 Two urban retail properties and the new property are expected to bestableSuroy Mall Chikushino/ Strategic Leasing＜ site layout ＞

Vacantnational road

77.07 tsubo

In process of leasing
2 spaces

VacantIn discussions with multiple
prospective tenants
3 spaces

In discussions with multiple
prospective tenants

27.07 tsubo

In process of leasing

Unused area

Has contracted

197.83 tsubo

40.02 tsubo

Considering expansion

Vacant226.78 tsubo
177.12 tsubo

空室区画200.10 tsubo

In process of leasing
vacantleasedparking lot

In discussions with multiple
prospective tenantsHas contracted
Fixed-term building leases
1 spaceshort/mid term
growth drivers
85.7％

Fixed-term building leases（Contract until July 2027）
78.2％ based on area
Consideration of expansion
on unused area
1 space23

5. Operating results for the FP17 ended July 2024 (6)Residence

 Composed of mainly family-type residential units that can realize continuous rent increases, with 93.9% of the floor spaceof 30 square meters or more (based on floor area).
 Policy is to strictly select only relatively new properties for single-type residences. In September 2024, Urban Park Namba whichis composed on mainly for single-type units was sold.
Operating Results

Trends in rents (increase/decrease)＜Basic information＞
less than 30㎡# of units

259

total area

6,197.32 ㎡（6.1%）(thousand yen)

30㎡ between 60㎡# of units

326

2,500

60㎡ or larger

total area

15,689.82 ㎡（15.5%）# of units

total area

1,114

79,090.24 ㎡（78.3%）*21 properties owned at the end of FP17

＜FP17 results＞

Average occupancy rate 96.2%, rents has increased mainly in 60㎡/unit.
less than 30㎡

30㎡ between 60㎡

60㎡ or larger

 Realized rent increase mainly in larger units at new contracts aswell as renewals

2,000
1,500
1,000
500
0

# of units

change# of units

change# of units

change△ 500

New contract

58

4.5%

37

4.3%

66

11.0%

△ 1,000

Renewal

37

0.2%

61

1.6%

219

1.9%

increase / 30㎡ or larger

increase / less than 30㎡

Termination

23

－

34

－

62

－

decrease / 30㎡ or larger

decrease / less than 30㎡

FP12(Thousand yen)

20,00050,000+1.7%

40,00015,00090%

10,00070%

10,000Acquired three single typeproperties underutilized

60%

60㎡ or larger

total amount of
new rent

30㎡ between 60㎡

less than 30㎡

total amount ofprevious rent
60㎡ or larger

total amount of
new rent

30㎡ between 60㎡

FP17

Covid-19
pandemic

80%

20,000

total amount ofprevious rent

FP16

100%

30,000

5,000

FP15

 Realized rents and occupancy rate above expectation in three
single type properties of four properties newly constructed andunderutilized.

Rent increase at renewal(Thousand yen)

+8.4%

FP14

Trends in occupancy rate by types

Change in monthly rent for new contracts and renewals
Rent increase at new contract

FP13

less than 30㎡

50%
2016/012017/012018/01

2019/01
family2020/01

2021/01

single2022/01
total

2023/012024/0124

5. Operating results for the FP17 ended July 2024 (7)Logistics

Operating Results

Historical change in total monthly rent

＜Basic Information＞
Property nameLocation

Leasable area

Occupancy
rate

Iwatsuki Logistics

Tokyo
Area

Iwatsuki-ku, Saitamashi, Saitama

30,190.81㎡

100.0%

Yokohama Logistics

Tokyo
Area

Kanagawa-ku,
Yokohama-shi,
Kanagawa

18,142.08㎡

100.0%

Funabashi-shi, Chiba

38,086.56㎡

94.7%

Ichikawa-shi, Chiba

12,471.50㎡

100.0%

Tokorozawa-shi,
Saitama

5,994.75㎡

100.0%

Funabashi-shi, Chiba

6,316.32㎡

100.0%

Kitakatsushika-gun,
Saitama

19,833.47㎡

100.0%

Funabashi-shi, Chiba

8,902.08㎡

100.0%

139,937.57㎡

98.6%

Tokyo
Area
Tokyo
Baraki Logistics
Area
Tokyo
Tokorozawa Logistics
Area
Tokyo
Funabashi Nishiura Logistics II
Area
Tokyo
Matsubushi Logistics
Area
Tokyo
Funabashi Hi-Tech Park Factory I
Area
total / average
Funabashi Logistics＜Investment Policy＞
 Portfolio structured with mid-sized logistics facilities within roughly 30 km of Tokyo
Station High percentage of fixed-term building leases generating stable revenue Negotiating rent increase with tenants those rents gap with market rents
 Achieved internal growth in FP16 due to building expansion utilizing unused floorarea ratio. Continues to consider the possibilities of internal growth including
building expansion.
＜Topics in FP17＞
 Stable revenue as expected in FP17
 Achieved rent increase at one property from Feb. 2024(+3.3% compared to theprevious rent, +0.2％ to the whole rents form logistics）＜FP18 and onwards＞
 Negotiating rent increase with tenants those who have renewal timing in FP19
 Leasing activities underway in area to vacate in March 2025. .Viewings by 19
companies Rent increase in Feb. 2024(+3.3% compared to theprevious rent) Internal growth due tobuilding expansion in FP16

(end of 17FP)

103%
102%

101.9%

101%

101.7%

100%
99%

Revision of Rent and Contract Period(㎡)

50,000Normal lease（3）

Fixed-term lease( ) number of tenants

In discussion aiming for rent
increase at re-contract

40,00030,000Plans to vacate in Mar. 2025.
Leasing activities underway.
Viewings by 19 companies(As of the end of Jun. 2024)

20,000

（2）

（1）

（1）

10,000
0

FP19

FP20

FP21

FP22

（1）

FP23

FP24

（1）

FP25

FP26

FP27

（1）

after 28FP

25

5. Operating results for the FP17 ended July 2024 (8)Hotel Overview

Overview

Rents from hotels (actual/forecast)＜FP17＞
 Total rents income ： 2,038mn / +8.6% compared to initial forecast Variable rent ： 1,228mn / +15.1% compared to initial forecast
Rents from seven hotels operated by Polaris acquired in Sep. 2023
significantly exceeded expectations (+12.1% compared to the initial
forecast)＜FP18 and onwards＞
 Four hotels newly acquired ～ in FP18, estimated performance in
Sep. 2024 already exceeding preconditions for forecast, expecting
better performance than forecast Existing hotels～expecting upside in variable rents
 Transferred “Smile Hotel Namba” whose performance potential islimited Consider mainly hotel properties operated by Polaris as well as rare /competitive properties in area or type(mn）

fixed rent

compare toforecast
+8.6％

3,000
2,500
2,000

forecast

variable rent

1,877

2,845

2,666
2,038

1,500
1,000
500
0

FP17
initial forecast

FP17
actualFP18
forecast

FP19
forecast*The 18th fiscal period forecast does not include Smile Hotel Namba, which was transferred on August 19, 2024.
**The four hotels acquired on August 30, 2024 will effectively contribute 5 months in the 18th fiscal period and 6 months in
the 19th fiscal period.

Characteristics of hotels operated by Polaris
Property nametype

Acquisition
price
（mn）

HTL-08
HTL-10
HTL-11
HTL-12
HTL-13HTL-14HTL-15
HTL-16
HTL-17
HTL-18
HTL-19
HTL-20

KOKO HOTEL Osaka Namba
KOKO HOTEL Ginza 1-Chome
KOKO HOTEL Sapporo Ekimae
KOKO HOTEL Fukuoka Tenjin
KOKO HOTEL Hiroshima Ekimae
KOKO HOTEL Kagoshima Tenmonkan
KOKO HOTEL Sapporo OdoriBest Western Plus Fukuoka Tenjin-minami
KOKO HOTEL Tsukiji Ginza
KOKO HOTEL Residence Asakusa Kappabashi
KOKO HOTEL Residence Asakusa Tawaramachi
KOKO HOTEL Osaka Shinsaibashi

Limited Service
Limited Service
Limited Service
Limited Service
Limited Service
Limited Service
Limited Service
Limited Service
Limited Service
Residence
Residence
Limited Service

2,000
17,800
6,700
5,000
4,100
3,800
4,200
3,800
17,000
4,300
5,900
7,500

# of
rooms

98
305
224
159
250
295
145
236
188
42
47
211

inbound
ratio

65.3％
84.9％
21.6％
65.0％
4.5％
1.7％
35.1％
60.4％
92.5％
94.3％
98.6％
64.7％

DOR

LOS

double occupancy
rate

length of stay

1.84
1.85
1.39
1.77
1.16
1.16
1.58
1.85
2.37
3.14
3.50
1.65

2.09
2.54
1.90
1.87
1.43
1.52
1.84
1.59
2.30
3.36
3.66
1.78

26

5. Operating results for the FP17 ended July 2024 (9)Hotel GOP / GOP margin The ratio of GOP to sales (GOP margin) is 59.5% on average for the 12 Polaris-operated hotels (based on actual results from April to July 2024)
 Polaris and SAR will collaborate to implement agile measures (e.g. twinning construction works) to improve sales and occupancy rates.
Reason and advantage of high GOP margin

Rent structure to capture revenue growth at hotels

Variable rent
Variable rent = GOP x 85% - fixed rent•
ReasonRental Income

Total rent:
GOP x 85%••

GOPs of hotels

Advantage

Fixed rent•

Many of the hotels specialize in lodging with around 200 rooms, which isconsidered to allow the most efficient operation, and can be operated bya small number of people.
Many of the hotels are located in the city center, and can attract outside
tenants to the lower floors, and rental income from such tenants
supports the operator's revenue.
Area management by Polaris which pursues efficiency (mutual support
among staff, transfer of guests between hotels, etc.)
Future accommodation demand is expected to expand more graduallycompared to the past, and since rent is calculated based on GOP, ahigher GOP margin enables the gradual increase in sales to be captured
more as rent.

Profit Structure of twelve hotels operated by Polaris
April to July 2024
Total

Sales

【Accommodation Division】• Room charge income: 94.8% of total sales / Expenses: Room cleaning staff expenses, linen costs, etc.
• As the hotels are specialized in accommodation, they can be operated with a small number of staff.

Cost

100

40.5

Production Div

Accommodation

94.8

29.2

Food &
Beverages

2.4

1.9

Others

2.8

0.1

－

9.3

Non-production Div
GOP margin

59.5* Composition ratio of each item when total sales from February to July2024 is set as 100.

【Food & Beverages Division】• Food & Beverage division revenue: 2.4% of total sales / Expenses: food and beverage costs, outsourcing
fees, etc.
• The basic policy regarding food & beverage is to attract restaurants or to outsource such services.
【Oher Division】• Rent income from restaurants etc. in the lower floors, and fees from external rent of conference rooms.
• Supports operator revenues.

【Non-production Division】•

Personnel expenses of hotel managers, etc., A&G expenses, sales and marketing expenses,facility
management expenses, utility costs, outsourcing expenses, etc.

27

5. Operating results for the FP17 ended July 2024 (10)Hotel OCC / ADR / RevPAR

 Even though business performance is expected to improve, the forecast of various indicators used as assumptions for forecasts forthe 4 hotel properties acquired on August 30, 2024 are conservative, focusing on the operator's budget, given that the track record
is short.
 The recent various indicators are confirmed to have generally exceeding forecasts.
FP16 results (average)
ADR：10,929 yen
RevPAR ：9,604 yen

FP17 results (average)
ADR： 10,929 yen
RevPAR ： 9,482 yen

FP18 forecast (average)
ADR：13,088 yen
RevPAR ：11,373 yen

FP19 budget (average)
ADR：13,418 yen
RevPAR ：11,732 yen(yen）

15,00090%

14,00085%

13,00080%

12,00075%

11,00070%
10,000
9,000
8,000

65%

Four hotels
newly acquired

ADR forecast
ADR actual
RevPAR forecast
RevPAR actual

7,000

OCC forecast (right)

60%
55%

OCC actual (right)
6,000

50%

*Scope: Hotels operated by Polaris. In FP17, 8 properties, while after FP18, 12 properties are in the scope.

28

5. Operating results for the FP17 ended July 2024 (11)Capex Control

 Basically, the policy is to implement capital expenditures within the scope of depreciation expenses.
 The decisions on implementation of strategic capital expenditures related to internal growth measures will be made taking into
consideration investment efficiency.
（yen）

1,400,000
1,200,000
1,000,000
800,000

Capex
Forecast
Capex予算

Depreciation cost

Capex
ActualCapex実績

減価償却費(Forecast)＜FP16 results＞＜Examples of Strategic CAPEX Investments＞
 Strategic CAPEX such as construction works which lead tofuture revenue increases, increase in asset value, andimprovement in tenant satisfaction, taking into accountinvestment efficiencies.
 Building extension: Utilize unused FAR and increase rentablefloor space, in cases where revenue increase can be
expected, and investment efficiency is believed to be high.
 Residences: Renovations which involve changes to floor
plans which are determined to be able to achieve rent
increases, and which are believed to have high investment
efficiency.

Strategic
CAPEX

 Funabashi High-Tech Park Factory I Expansion
 Construction work by lessor in connection with the
opening of "Lopia" at Shuroy Mall Chikushino＜FP15 results＞
 Utilizing the gain on the sale, strategically implement
large-scale construction work ahead of schedule＜Major strategic CAPEX for FP17＞
Exterior / interior renewal of Urban Center Shin59 million yen
Yokohama
Renovation of restrooms of La Park Kishiwada 19 million yen
Renovation of Urban Park Azabujuban
3 million yen

600,000
400,000
200,000
0
第11期
FP11
2021年７月期
2021/7

第12期
FP12
2022年1月期
2022/1

Depreciation cost

第13期
FP13
2022年7月期
2022/7

第14期
FP14
2023年1月期
2023/1

FP11
July 2021
Actual
633,013

第15期
FP15
2023年7月期
2023/7FP12
Jan 2022
Actual682,245

第16期
FP16
2024年1月期
2024/1

FP13
July 2022
Actual
697,599

第17期
FP17
2024年7月期
2024/7

第18期
FP18
2025年1月期
2025/1

FP14
Jan 2023
Actual743,661＜Major strategic CAPEX for FP18＞
LED installation of Honmachibashi Tower
62 million yen
common / private area
Store
area
construction
of
Suroy
Mall
第19期
FP19
50 million yen
Chikushino
2025年7月期
2025/7

FP15
July 2023
Actual763,353

16FP
Jan 2024
Actual963,602

FP17
July 2024
Actual
1,034,674

FP18
Jan 2025
Forecast
1,142,598（thousand yen）

FP19
July 2025
Forecast
1,167,127

Capex Forecast

453,448507,750

520,543

628,409871,225

1,151,707

867,658

873,691

899,454

Capex Actual

363,439424,722471,534

605,932

787,991

1,107,190

774,323--（Strategic CAPEX)(78,826)(54,321)(111,822)(131,701)(214,397)(424,296)（173,038）--

Capex Budget reduction rate
Capex ratio （Capex Actual／
Depreciation cost）
Repair cost（Actual／Forecast）
Number of Properties as of theend of FP

19.8％

16.4％

9.4％

3.6％

9.6％

3.9％

10.8％

-

-

57.4％

62.3％

67.6％

81.5％

103.2％

114.9％

74.8％

-

-

220,205

181,998

255,201

173,257

308,817319,629

217,551

303,369

244,512

53

60

60

63

62

71

71

74

74

29

5. Operating results for the FP17 ended July 2024 (12)Capex Control

 Considered strategic CAPEX for hotel assets aiming to further increase revenues / GOP / rents.
 Working together Polaris, discussed the contents, timing of implementation and scale of strategic CAPEX.
Strategic CAPEX on hotel assets
 As of Sep. 6, 2024, the average age since construction of the 19
hotels properties currently owned is 10.3 years, and as of current,
Capex associated with aging is limited.

【KOKOHOTEL Ginza 1-Chome】
BeforeAfter Assumed strategic CAPEX are as follows;a. Twinning construction aiming for increase in ADR
b. Smoke-free construction aiming for increase in OCC and ADR
c. Construction to improve guest satisfaction
 Identify issues and discuss measures at regular monthly meetings
with Polaris, including local area managers and managers.
 Discuss contents, timing and scale, etc. including burden of costs.
Completed

ScheduledCategory

Strategic CAPEXStrategic CAPEX

Improve customer
satisfaction

Construction on
operator's side

Construction on
operator's side

Strategic CAPEX

Property
name

KOKO HOTEL
Ginza 1-Chome

KOKO HOTEL
KagoshimaTenmonkan

KOKO HOTEL
Sapporo Ekimae

KOKO HOTEL
Fukuoka Tenjin

KOKO HOTEL
Osaka Shinsaibashi

KOKO HOTEL
Ginza 1-Chome

Twinning
10 Single rooms⇨ ADR +5,000 yen(expected)

Twinning
30 single rooms⇨ ADR +2,000 yen(expected)

Wi-Fi retrofit
Aiming to attract repeat
guests by renewing
facilities in response toguest reviews.
⇨ Increase in number ofrevisiting guests

Smoke-free
All rooms are smoke-freeby changing 52 smoking
rooms to non-smoking⇨ Increase in OCC(expected)⇨ Increase in ADR(expected)

Contents
andEffectTwinning
Smoke-free
All rooms are smoke-free 20 Single rooms
by changing 66 smoking ⇨ ADR +5,000 yen
rooms to non-smoking(expected)⇨ Increase in OCC(expected)⇨ Increase in ADR(expected)

Construction
PeriodJuly 10, 2024 - July 31, 2024

July 4, 2024 - July 31, 2024

June 1, 2024 - June 27, 2024

April 8, 2024 - April 10, 2024
May 27, 2024 - May 29, 2024

FP18 (2025/1)

FP18 (2025/1)

AmountApprox. 12mn

Approx. 29mn

Approx. 6mn

Approx. 3mn

Approx. 3mn

Approx. 21mn

30

5. Operating results for the FP17 ended July 2024 (13)Financial standing For new borrowings upon the public borrowing, invited 5 new banks and realized diversification of lenders and repayment dates.
 The “Borrowing Policy” for the time being, from the perspective of controlling interest payments, is to procure long-term / floatingrate loans, and to consider fixing the interest rate depending on financial market conditions.
Main financial indicators*

LTV / Credit Rating

FP16
Jan 2024

FP17
July 2024

As ofAug. 31, 2024***

LTV

47.5％

47.1％

-

Interest-- bearing debt
balance

123,140 mn

121,840 mn

138,880 mn

Long-term debt ratio

98.9 ％

99.2 ％

99.3 ％

Average remaining period
to maturity

3.3 yrs

3.2 yrs

3.5 yrs

Average borrowing period

5.3 yrs

5.4 yrs

5.4 yrs

Average interest rate**

0.79 ％

0.90 ％

0.95 ％

Fixed interest rate ratio

70.8 ％

64.6 ％

56.7％

50.0%

FP16,
47.5%

45.0%

*This describes the status including investment corporation bonds.
**The interest rates shown take into consideration the effects of interest rate swaps (fixing of interest rates).
*** Consumption tax loan and bridge loan are excluded.

after repayment of
47.6%
sales tax loan

Diversification of repayment dates (as of Aug 31, 2024)(mn）

14,000Planned to be
12,000 repaid after
transfer ofproperties

8,000

3,200

0

3,785

7,300

corporation bond

4,840
10,23011,850
1,200

new

1,000

1,000

6,000

2,000

floating

800

10,000

4,000

fixed

Planned to be repaid
after sales tax refund

12,07011,215
9,060

8,750

9,700 9,790

8,840

7,050

8,000

8,200

3,000

FP18 FP19 FP20 FP21 FP22 FP23 FP24 FP25 FP26 FP27 FP28 FP29 FP30 FP31
2025/1 2025/7 2026/1 2026/7 2027/1 2027/7 2028/1 2028/7 2029/1 2029/7 2030/1 2030/7 2031/1 2031/7

Long-term Issuer Rating
A+ (Stable)
Rating and Investment
Information, Inc. (R&I)
Issuer RatingA (Stable)

FP1
FP2
FP3
FP4
FP5
FP6
FP7
FP8
FP9
FP10
FP11
FP12
FP13
FP14
FP15
FP16
FP17

40.0%

Japan Credit Rating
Agency, Ltd. (JCR)

FP17,
47.1%

Bank formation (as of Aug 31, 2024)
Lender

Ratio

Lender

Ratio

Sumitomo Mitsui Banking

24.1%

The Juhachi-Shinw a Bank, Ltd

0.9%

Mizuho Bank

17.4%

The Musashino Bank, Ltd

0.7%

SBI Shinsei Bank

13.5%

The Yamagata Bank, Ltd

0.7%

Sumitomo Mitsui Trust Bank

11.7%

The Ogaki Kyoritsu Bank, Ltd

0.7%

Aozora Bank

7.9%

Kansai Mirai Bank, Limited

0.7%

Resona Bank

6.6%

The Gunma Bank

0.7%

The Bank of Fukuoka

2.1%

Mizuho Trust & Banking

0.6%

The Kiyo Bank, Ltd

1.8%

Suruga Bank Ltd

0.5%

Minato Bank

1.4%

The Dai-ichi Life Insurance

0.4%

The Chiba Bank, Ltd

1.4%

Fukoku Mutual Life Insurance Comp

0.4%

The Asahi Shinkin Bank

1.4%

The Kumamoto Bank, Ltd

0.4%

San-ju San Bank

1.1%

The Hokuriku Bank, Ltd

0.2%

The Nishi-Nippon City Bank

1.1%

Corporation Bonds

0.7%

The Bank of Yokohama,Ltd

1.1%

31

6. Overview of Newly Acquired Assets

32

6. Overview of Newly Acquired Assets
KOKO HOTEL Tsukiji Ginza
Features of the location:
Expected to increase in attractiveness through upcoming redevelopment

BELScertified
property The “Tsukiji District Community Development Project” is underway at the old site of Tsukiji Market close to
the hotel, the business scale of which is 900bn
 Business operators were selected in April 2024, some of the buildings will open in FY2029, and theothers will open from the early 2030s
 A large attraction and exchange facility (multi-purpose stadium with capacity of approx. 50,000 people), a
MICE facility (a facility for meetings, incentive travel/ tours, conventions, and exhibitions), a life
science/commercial complex, and offices, etc. are scheduled for construction
 The construction of additional infrastructure such as a new subway line, an expressway, a wharf, anddecks for pedestrians is being considered in the nearby area
[Tsukiji District Town Development Project Concept Image][Seaside Subway Line Map]

Ginza area

KOKO HOTEL
Tsukiji Ginza

Features of the Asset:
 Polaris operates this property together with KOKO HOTEL Ginza 1-chome,achieving high GOP margins
 The hotel is easily accessible by public transportation, located approx. 6 minutes’
walk to the nearest station, “Tsukiji” Station on the Tokyo Metro Hibiya Line, andapprox. 9 minutes’ walk to “Higashi-ginza” Station on the Toei Subway Asakusa
Line and Tokyo Metro Hibiya Line The hotel is close to Tsukiji Outer Market, a popular site among domestic andinbound tourists, and is located within walking distance from the Ginza area, so it
can capture both business and leisure demands
 All rooms accommodate 2-4 guests, and demand from school trips, sports groups,
inbound tourists, and other group trips is expected

Source: Created by the Asset Manager based on “Overview of proposals fromthe prospective operators” released by the Bureau of Urban Development,
Tokyo Metropolitan Government

Operating performance

Source: Created by the Asset Manager based on "Project
Plan Proposal (November of Reiwa Year 4)“ released by
Subway Project Plan for Central and Coastal Areas From
the Study Meeting

Anticipated figures during
stable operation as stated in
the Appraisal Report

Preconditions for
performance
forecastof FP2025/7

Feb. 2024

Mar. 2024

Apr. 2024

May 2024

June 2024

July 2024

AverageFeb.2024July 2024

Occupancy rate

94.2%

95.2%

93.8%

94.4%

93.7%

95.2%

94.4%

89.0%

89.6%

ADR (yen)

21,761

27,83528,08023,425

21,97524,182

24,55323,00023,556

RevPAR (yen)20,50826,48926,348

22,107

20,592

23,03323,186

20,47021,10433

6. Overview of Newly Acquired Assets
KOKO HOTEL Residence Asakusa Kappabashi/ KOKO HOTEL Residence Asakusa Tawaramachi
BELScertified
property

KOKO HOTEL
Residence Asakusa
Kappabashi

Features of the Asset:
Residence-type hotels that meet demand for multiple occupancy
guestrooms and mid-to-long-term stays
 The concept is “a hotel that feels like home”
 Realizing high GOP margin through integrated operation by Polaris
Features of the location:
Competitiveness due to the location in the Asakusa area
 Both properties are easily accessible, located within a 5 minutes’ walkfrom the nearest station
 Both hotels are surrounded by major sightseeing spots including
Senso-ji Temple, the Nakamise street, and Tokyo Skytree, capturing
tourism demand, attracting inbound visitors as well

KOKO HOTEL
Residence Asakusa
Tawaramachi

KOKO HOTEL Residence Asakusa Kappabashi
Operating performance

Anticipated figures during stable
operation as stated in the
Appraisal Report

Preconditions for
performance forecastof FP2025/7

Feb. 2024

Mar. 2024

Apr. 2024

May 2024

June 2024

July 2024

AverageFeb.2024July 2024

Occupancy rate

76.8%

88.3%

92.8%

91.8%

90.4%

92.4%

85.5%

80.0%

85.9%

ADR (yen)

31,65237,02438,37429,993

32,952

38,09733,671

34,40034,428

RevPAR (yen)24,32432,70135,60327,52829,78735,201

28,777

27,52029,582

Anticipated figures during stable
operation as stated in the
Appraisal Report

Preconditions for
performance forecastof FP2025/7

KOKO HOTEL Residence Asakusa Tawaramachi
Operating performance
Feb. 2024

Mar. 2024

Apr. 2024

May 2024

June 2024

July 2024

AverageFeb.2024July 2024

Occupancy rate

86.5%

88.8%

91.6%

93.0%

91.7%

90.6%

90.4%

84.0%

85.9%

ADR (yen)

34,88940,964

43,19135,30040,032

44,41539,86538,50039,634

RevPAR (yen)30,17936,382

39,57632,82936,71040,23836,03832,34034,04834

6. Overview of Newly Acquired Assets
KOKO HOTEL Osaka Shinsaibashi
KOKO HOTEL Osaka Shinsaibashi
Features of the location:
Potential increase demand of tourism andbusiness Osaka The number of passengers at KansaiInternational Airport has been rising sincearound autumn of 2022, but has notrecovered to the 2019 level. However, it isexpected to grow further on the back ofincreased tourism and business demand,and boosted inbound travel
 Expo 2025 Osaka, Kansai, which isscheduled to be held for six months from
April to October 2025, is expected to attract
many domestic and foreign visitors<The number of passengers at KansaiInternational Airport (to the same month of 2019)>
InternationalroutesFeatures of the Asset:
 The hotel is situated in a competitive location with good access to key areas in Osaka, around approx.3 minutes’ walkfrom “Shinsaibashi” Station on the Osaka Metro Midosuji Line and from there, with close access to "Shin-Osaka” Station
and “Umeda” Station are reachable in approx.14 and approx.7 minutes, respectively
 The area around "Shinsaibashi" Station is one of Osaka’s core retail areas, as well as an area where various companies
have their headquarters and branch offices, and where business demand is strong Since the participation of Polaris as operator, the focus of room types has been changed from single to twin, resulting in
an increase in the double occupancy rate(DOR). The hotel has also successfully captured leisure demand Rent income from tenants such as a clinic in basement level one and the second floor, and restaurants on the first floor
contribute to increase in GOP margin
Operating performance

Domestic routes

Source: Created by the Asset Manager based on “Monthly
usage status” released by Kansai Airport”

Anticipated figures during stable
operation as stated in the
Appraisal Report

Preconditions for
performance forecastof FP2025/7

Feb. 2024

Mar. 2024

Apr. 2024

May 2024

June 2024

July 2024

AverageFeb.2024July 2024

Occupancy rate

81.7%

87.5%

90.2%

86.1%

85.1%

86.7%

81.5%

86.0%

89.1%

ADR (yen)

10,155

11,69911,758

10,725

9,881

10,626

10,88911,50011,682

RevPAR (yen)8,293

10,234

10,608

9,236

8,408

9,214

8,878

9,890

10,41435

6. Overview of Newly Acquired Assets
Urban Forum Warabi / Star Asia Mezzanine Loan Debt Investment Series 9
Urban Forum Warabi
BELScertified
property

Features of the Asset and the location:
 Commercial facility located approx.4 minutes’
walk from “Warabi” Station on the JR Keihin
Tohoku Line, traveling from “Warabi” Station to“Tokyo” Station by train will take approx.30
minutes, while “Omiya” Station is approx.15
minutes away, making this area with excellent
access for commuters Entered into a rental guarantee contract with
one tenant for a certain period, ensuring stable
income The west exit of “Warabi” Station is currently
undergoing redevelopment, with two high-rise
residential buildings comprising 415 units plus
commercial facilities scheduled for completionin July 2027, which will likely create additional
local demand

Property overview
Acquisition price

1,100mn

Appraisal value

1,210mn

Appraisal
NOI yield

4.7%

Location

Kawaguchi-shi, Saitama

Structure /FloorsSteel-framed / 6F

Total
floor area

1,489.22m2

Construction
completion

Dec. 2023# of tenants

5

Occupancy rate100%

 This recently constructed commercial facility
located near the train station consists of tenants
offering services such as community-based
stores and shared offices, responding to theincreasing demand driven by the population
density of the surrounding area and thediversification of work styles
 The Asset Manager’s unique network allowed
us to discover this project at the predevelopment stage and secure the property
through the use of a bridge schemeStar Asia Mezzanine Loan Debt Investment Series 9
 Series 9 of SAR’s mezzanine loan debt investments
 Realize investments leveraging proprietary sourcing routes and utilizing thebridging functions of the sub-sponsor
 Redeemed funds will be reinvested in mezzanine loan debt investments or used to
execute strategic CAPEX
Operator

Transaction overview
Acquisition
price

130mn

Par value

130mn

Interest rate

Base rate+ 5.0%

Acquisition
dateAug. 16, 2024

AcquiredfromTokyo CapitalManagement(Daiban Hotel One LLC)

Non-

recourse
Underlying
loan
Asset:(original
hotel
loan
androoms receivable)
Shin-Osaka;
Equityappraisal
investment
value:
in a silent
3,500mnpartner-

Trustee(Kiraboshi Bank Corporation)

Lending(nonrecourse
loan)

ABL
lenderAsset to be
Acquired(Mezzanine)
130mn

Star Asia
Investment
Corporation
130mn

ship

List of Star Asia Investment Corporation’s mezzanine loans(Total value of assets: JPY 3,011mn)
Asset
no.

Acquisition
Price

Underlying Asset

Interest rate

1

Relief Premium Haneda

Redemption
complete

400mn Base rate + 5.0%

2

Sasazuka South Building

Redemption
complete

335mn Base rate + 5.0%

3

The Royal Garden Residence Shirokanedai Redemption

126mn Base rate + 5.0%

DS Kaigan Building

complete(formerly known as Premier Kaigan Building)

Redemption
complete

300mn Base rate + 5.0%

5Sun Maison Ohori Park Kita

Redemption
complete

150mn Base rate + 5.0%

6Tajimi Logistics Center

Redemption
complete

400mn Base rate + 7.0%

7Quintessa Hotel Tokyo Haneda Comic & Books

4

8A
8B
9

Centurion Hotel Grand Akasaka
hotel androoms Shin-Osaka

400mn Base rate + 5.0%430mn Base rate + 5.3%340mn Base rate + 7.3%130mn Base rate + 5.0%

36

7．Initiatives on ESG

37

7. Initiatives on ESG

Recent Topics regarding ESG Initiatives and ESG Promotion System
Acknowledgement on ESG＜GRESB Real Estate Assessment＞(note1)

 Star Asia Investment Corporation (“SAR”) participated in the GRESB Real
Estate Assessment in 2023 and acquired “3 Stars” rating.

ESG promotion system The Asset Manager’s ESG promotion system centered on the Sustainability
Promotion Division (Primarily involving E (Environment) matters)

 Furthermore, SAR obtained the “Green Star” which indicates that SAR is aparticipant which excels in both the “Management Component” which assesses
the policy and organization structure for promoting ESG as well as the“Performance Component” which assesses environmental performance andtenant engagement of properties owned.

The Asset Manager’s
Sustainability
Promotion Division SAR also received the highest “A Level” for the GRESB Public Disclosure,which assesses the width of our ESG disclosure.

Takayuki Hatakeyama

Tetsuya Makino

Executive officer in charge of sustainability
General Manager of Sustainability Promotion Division

Nippon Kanzai(Sub sponsor)
Supports SAR to achieve numerical targets(provides advice related to developing various
data and measures to reduce environmental
burdens)

Manager of Sustainability Promotion Division<Support System>■Initiatives on ESG• Setting of goals primarily focused on
E (Environment), process
management, and result verification• Participation in GRESB Real Estate
Assessment, and acquired 3 Star

■New Business & Corporate Branding
Dept.
• Institution with certification for
CASBEE■Optimization of capital expendituresand repairs expenses■East Japan Engineering Management
Center• Selection of equipment and materials
with consideration for impact onrevenue pursuant to ESG Policy andSustainable purchase policy throughexamination of capital expendituresand repair expenses• Environment-related consulting
services■West Japan Engineering Management
Center• Energy-related services• Environmental assessment services＜Initiatives on GRESB Real Estate Assessment ＞
Develop and organize data, led by the Sustainability Promotion Division and withthe cooperation of Nippon Kanzai Group who is one of sub-sponsors.
We recognize that the purpose is not to receive high evaluation itself, but that it
is important to make efforts towards achieving a better environment, a better
society, and building a better governance structure.

Tokyo Capital Management (Sub sponsor)
TCM helps developing long-term repair plans for SAR’s portfolio
assets together with Nippon Kanzai38

7. Initiatives on ESG

E (Environment) related Numerical Goals and their Achievement Status

 Total Energy consumption increased in 2023 due to the 7 hotels acquired at the time of the previous public offering SAR will aim for continued reductions by considering the introduction of highly efficient equipment and low carbon equipment whenrenovating or renewing facilities
E (Environment) Related Numerical Objectives and Actual Performance
GHG(note 1)
Monitoring item
GHG emissions

unit
t-CO2

2019
Base year
23,154.05

2021
Actual2022
Actual2023
Actual2030
Target year

20,130.43

20,588.99

24,167.02-

Scope 1t-CO2

1,968.71

1,672.17

1,953.58

2,570.26-

Scope 2t-CO221,185.34

18,458.26

18,635.41

21,596.76-

GHG emissions intensity

t-CO2/㎡

0.057120.040970.04051

0.04384

Reduction rate％-

▲ 28.3%▲ 29.1%▲ 23.2%▲ 10.0%unit

2019
Base year

2021
Actual2022
Actual2023
Actual2030
Target year

11,220.81
0.02768-

11,234.60
0.02286▲ 17.4%12,001.80
0.02362▲ 14.7%

13,710.32
0.02487▲ 10.1%0.02491▲ 10.0%2019
Base year
44,560.98
0.10992-

2021
Actual
44,615.75
0.09080▲ 17.4%2022
Actual
47,662.51
0.09379▲ 14.7%2023
Actual54,447.52
0.09877▲ 10.1%2030
Target year
0.09893▲ 10.0%2019
Base year
329,687.35
0.8133-2021
Actual255,933.91
0.5209▲ 36.0%2022
Actual334,463.31
0.6581▲ 19.1%2023
Actual427,136.45
0.7748▲ 4.7%

2030
Target year
≦ 0.8133±0%

2019
Base year
2,693.27
69.1%
9.61
-

2021
Actual3,164.05
70.4%
9.14▲ 4.9%

2022
Actual3,825.29
79.6%
9.46▲ 1.6%

2023
Actual4,218.67
77.7%
9.85+ 2.5%

2030
Target year
≦ 9.61±0%

Energy consumption
monitoring item
Crude oil equivalent usage
Crude oil equivalent usage intensity
Reduction rate
Energy consumption
monitoring item
Energy consumption
Energy consumption intensity
Reduction rate
Water consumption
monitoring item
Clean water usage
Clean water usage intensity
Reduction rate
Waste
monitoring item
Waste emissions
Coverage rate
Waste emissions intensity
Reduction rate

kL
kL/㎡
％
unit
MWh
MWh/㎡
％
unit
㎥
㎥/㎡
％
unit
ｔ
％
t/㎡
％

GHG emissions intensity (note 2)

Goal: 10% reduction
from base year by 2030

(t-CO2/㎡)

Reduction rate:23.2%

0.051400.05712FY2019Base year

0.040970.04051

0.04384

FY2021

FY2022

FY2023

Energy consumption intensity (note 3)(kL/㎡)

Goal: 10% reduction
from base year by 2030
Reduction rate: 10.1%

0.02768

FY2019Base year

0.02286

0.023620.02487

FY2021

FY2022

FY202339

7. Initiatives on ESG

Initiatives for E (Environment) and S (Society)
Environmental Certification

Status of signing of green lease contracts (as of July 31, 2024)(note 5)

Target of certified ratio：50%（2026）

★★★★★

★★★★
BELS

(note 2)★★★

★★

Rank SCASBEE(note 3)

Rank A

Total**

Property name

Asset
type

Total floorarea (㎡)

Funabashi Hi-Tech Park Factory Ⅰ*

Logistics

576.00

KOKO HOTEL Sapporo Odori

Hotel3,854.01

Best Western Plus Fukuoka Tenjin-minami

Hotel7,322.03

KOKO HOTEL Hiroshima Ekimae

Hotel5,370.75

KOKO HOTEL Kagoshima Tenmonkan

Hotel4,622.48

Ratio(note 1)

KOKO HOTEL Tsukiji Ginza

Hotel6,086.48 6.4%

Urban Center Hakata

Office3,566.56

Urban Park Mitaka

Residence

1,180.02

KOKO HOTEL Residence Asakusa Tawaramachi

Hotel2,226.57

Residence

2,039.17

Urban Park Miyamaedaira (note 4)
Urban Forum Warabi

Retail

1,489.22

Higashi-Kobe Center Building

Office25,740.46

Urban Center Shinjuku

Office7,624.66

Seiyu Minakuchi

Retail31,829.71

Honmachibashi Tower

Office15,407.83

La Park Kishiwada

Retail

65,663.02

abeno nini (Retail)

Retail

4,866.82 38.0%

Urban Park Daikanyama

Residence

8,261.29

Urban Park Tokiwadai Koen

Residence

15,708.08

Urban Park Mitsuike Koen

Residence

10,918.37

Baraki Logistics

Logistics

12,471.50

Iwatsuki Logistics

Logistics

29,729.72

 Established policy for green lease agreement and added green lease clauses
for 185tenants (130 office tenants, 35 retail tenants, 7 residence tenant, 9logistics tenants, and 4 hotel tenants.（41.2% of leasable area +3.1%
compared to the previous FP）
 SAR plans to add the same clause to other properties
Total leased area

185 tenants

206,662.79 ㎡
Initiatives for S (Society)◆Initiatives for employees
 Diversity & inclusion (one director and one auditor are female ) Conducts employee satisfaction surveys regularly Introduced various systems in order to care for the health and comfortableness of
employees• Promotion of teleworking and staggered commuting, superflex• Maternity leave, childcare leave, nursing care leave, and reduced working hours◆Initiatives on own Property
 La Park Kishiwada- providing resting spots at the Danjiri festival. as apart of regional contribution initiatives- signed an agreement with Kishiwada City as atemporary evacuation facility in the event of tsunami.

◆Tenant satisfaction surveys
 Tenant satisfaction surveys are conducted periodically in order to enhance tenantsatisfaction

266,554.75 44.4%* limited to the expansion portion** as of Sep. 6, 2024

40

7. Initiatives on ESG
GovernanceSame boat investment

Calculation Formula for Asset Management Fees

 Aligning the interests of the Sponsor Group with those of the unitholders
by holding 6.9% of the investment units of the Sponsor Group (as of Jan
31, 2024)
 Members of the Asset Manager also hold investment units Aim to further align interests with those of unitholders and increase the linkage torevenues from properties under management.

Star Asia Group(as of Jan 31, 2024)

 Star Asia Group has continued to holdinvestment units since the time of listing, whichstrong supports the growth of SAR.
 Star Asia Group’s founders also as individuals
hold investment units.

＜Founder of Star Asia＞

Number of units
held in same-boat
investment:

164.316 units
Ownership:

6.9％

Calculation Formula

FP16

FP17

Management fees I

Total valuation amount of managed assets x
0.2% (upper limit)

175,906
thousand yen

180,814thousand yen

Management fees II

NOI × 7.5% (upper limit)

332,520
thousand yen

361,609
thousand yen

Acquisition fees

Acquisition price × 1.0％ (upper limit) ※254,733
thousand yen

0
thousand yen

Transfer fee

Assignment price× 1.0％ (upper limit) ※31,150thousand yen

0
thousand yen

Merger fee

Valuation amount of held assets× 1.0％
(upper limit) ※－－※： 0.5% if SAR transact with its interested parties.

Decision-making process Implement decision-making with high transparency, compliant with laws and regulations
 Maintain high ethical standards and execute operations as a steward of investors’ funds

Department
ProposalCompliance officer

Management team of the Asset Manager
 Hold SAR’s units through the employee unit purchase plan Indicates a high level of commitment by the management team to thegrowth of SAR.
 Star Asia Group commences cumulative investment-units investment
program.
 Akiko Kanno, Director and General Manager of the Finance Management
Department, was approved as SAR’s substitute executive officer at the
October 2023 unitholders’ meeting

Review and approval

ReturnInvestment Committee (including external members)
Review and resolution

RejectCompliance Committee (including external members)
Review and resolution

RejectBoard of directors
Review and resolution

RejectItems that do not need to be
discussed at the Compliance
Committee

SAR’s Committee
Review and approval

Disapprove

Items that need to be discussed at
the Compliance Committee41

7. Initiatives on ESG
GovernanceStar Asia Group’s Code of Conduct
Star Asia, the sponsor of Star Asia Investment Corporation, is a non-listed independent investment management group which invests mainly inJapanese real estate-related assets and whose main goal is supplying investors with excellent returns
Star Asia Investment Corporation and Star Asia shall share the same long-term vision in accordance with the Star Asia Group’s Code of Conduct,shall be a leading Real estate investment management group in Japan and shall persistently endeavor to continue to be such
The Code of Conduct is as follows:1

Client FirstWe are rewarded only when we
consistently meet and exceed ourinvestor clients’ expectations for the
mandates they have given to us.

5

Collaborative
andCooperative Culture

We succeed only when we work
together by fully utilizing our collective
strengths in a cooperative manner toserve our investor clients. The group’s
performance always exceeds the sum of
our individual performances.

2

Highest EthicalStandards andIntegrity

We always abide by the highest ethicalstandards and integrity. Unethicalactions by an employee could easily
destroy the group’s long-standing
reputation and trust.

6

Adaptability

We stay nimble, proactive and critical,
allowing us to adjust quickly as themarket environment changes in order tocontinue to be a successful leader in themarket where we do business.

3

Creativity

We utilize our experience, persistence,and creativity to identify and monetize
investment opportunities which may not
be immediately apparent to ourcompetitors.

7

Meritocracy

We reward our employees for their
specific personal performance as well as
their contribution to the group and toinvestor client performance.

4

Respect for Others

We treat our investor clients, employees,
trade counterparties, and vendors withthe utmost respect, and always strive to
be trustworthy partner.

8Endless PursuitofExcellence

We will tirelessly pursue excellence not
only for our investor clients but also for
ourselves.

42

8．Appendix

43

About Star Asia Group (1)Founded by Taro Masuyama and Malcolm F. MacLean IV in 2006, Star Asia Group is an independent fund management company
focused on Japanese real estate and real estate related assets (i.e., debt, equity, property, securitized assets, corporations, etc.)

Taro Masuyama
Co-Founder andManaging Partner

Malcolm F. MacLean IV
Co-Founder andManaging Partner

Since its founding, Star Asia Group has invested over JPY1,3 trillion and has current assets under management of around
JPY518.0 billion. (as of March 2024)

Star Asia Group has 1,244 officers and employees2 with over 55 professionals in finance, investment and real estate area inprimarily in Japan and a few in the United States. (as of March 2024. including group companies not listed below)

Star Asia Group’s partners and employees share a long-term perspective and always operate under our Guiding Principles which
continuously drive the group to become and remain one of the leading real estate investment management firms in Japan



Star Asia Group’s strong track record and long-term partnership approach with our investors have been integral in attracting
significant capital from sophisticated global investors, including large U.S. university endowments and foundations, Japanese andEuropean pension funds, U.S. and Asia based family offices as well as other global real estate investorsStar Asia Group is committed to its disciplined Investment Philosophy with a single goal of meeting and exceeding our client’s
expectations for the mandates we are given

Star Asia Group
Asset manager
Listed J-REITStar Asia
Investment
Management Co.,Ltd.

Star Asia
Investment
Corporation

Private FundManagement
Star Asia
Management:• Registered
Investment Advisor
with the US SEC• Manages private
funds including its
flagship Star Asia
Japan Special
Situations funds• Sponsors andsupports other group
entities providing
strategic andtechnical advice aswell as leadershipresources

Asset Management

Property Development

Star Asia Asset Advisors:• Registered for Financial
Instruments Business (2nd
Financial Instruments,
Investment Advisory, Agency
and Investment Managementwith Kanto Financial Bureau

Star Asia Sogo
Kaihatsu:• Provides pipeline
for GSASA, SAIC
and Polaris
Holdings*Invest Management Businessregistered as of December 2021

• Provides asset management,
property management andbrokerages services• Warehouses properties for
SAIC
SAGL Advisors K.K.:• JV with Global
Link Management Inc., anasset management company.

Purpose Built Student
Accommodation
Operation

Publicly Traded Hospitality
Operation & Development
Company

GSA Star Asia:• 50/50 JV with GSA
Group, a pioneer in
PBSA and operates in
8 countries includingUK• Develops andoperates PBSA in
Japan

Polaris Holdings(TSE: 3010):• Sponsored by Star Asia
Group
• Develops and operates
hospitality properties with
47 hotels and 8,205
rooms currently undermanagement in Japanand overseas (as ofMarch 2024)
Minacia Co., Ltd. :• Sponsored by Star Asia
Group
• Develops and operates
hospitality properties with
39hotels and 5,180 rooms
currently undermanagement in Japan (asof March 2024)*Registered Investment Advisory(June 2021)

Credit Investment
K.K. Star Asia
Finance:• Provide mezzanine
non-recourse
finance to 3rd party
sponsored SPCs.
• Registered Money
Lender and a Tax
QII.

Star Asia Group with expanding business provides strong support to SAR

44

Investment Philosophy of Star Asia Group (2)The Group intends to strictly adhere to its investment philosophy, and to meet the expectations of investors andcontinue to exceed such expectations. This is our largest objective
1

Research Focus

We believe that consistent outperformance canonly be achieved when investment opportunities
identified through our rigorous origination process
are validated against the comprehensive
understanding of the ever-changing market
environment. Government policies, macroeconomic
environment, state of capital markets, trends in
demographics,
realestatesupply/demand
dynamics, status of the real estate market cycle,
outlook and appetite by potential tenants, as wellas anticipated behavior of other market participants
are only a few of the critical inputs we analyze. In
order to formulate and continually update ourunderstanding of the current market environment,
we run iterative processes of gathering feedback
from our day-to-day investment and asset
management activities, which are supplemented byvarious third-party research reports and data that isfurther investigated and verified by us to generate
our unbiased view.

4

Specialization

We believe deliberate specialization and a flatorganization allow us to identify, properly structure,and dependably execute attractive, but often
complex,investment
opportunities.
This
specialization leads us to more predictable successand sets us apart from our competitors. Our seniorprofessionals have years of hands-on experience
in real estate deal sourcing, underwriting,structuring, asset management, financing, capital
markets, and securitization. Star Asia’s seniorprofessionals have developed deep-rooted local
relationships over multiple real estate cycles, andhave executed some of the most creative andcomplex investment opportunities in the market.

2

Market Inefficiencies

Unlike highly efficient foreign exchange, interest
rate and public equity markets, the Japanese andother Asian private real estate markets are
inherently inefficient. Although Tokyo is the world’s
largest metropolis in terms of population(approximately 35 million), GDP, and real estate
capital values, in our opinion, it is significantly lessefficient than the U.S. or U.K. markets. The
Japanese real estate market has high barriers-toentry, asymmetric information flows, a lessdeveloped securitization market, and a limited
universe of well-capitalized opportunistic market
participants, which together creates market
inefficiencies. We believe that thorough robust
analysis and deep local relationships combinedwith our significant hands-on experience allow us
to identify and capitalize on these market
inefficiencies that are not obvious to ourcompetitors.

5

Risk Control

Our objective is to achieve consistent and superiorrisk-adjusted returns by only assuming wellcalculated risks. When a potentially attractive
investment opportunity is identified, we examine all
the risks associated with the potential opportunity
through our rigorous review process. We thennegotiate with the counterparties to determine afair risk-sharing arrangement while formulating
structural solutions to eliminate or mitigate otherrisks, where possible. Concurrently, we conduct
quantitative and qualitative analyses to evaluate
the viability of the potential investment opportunity
against our strict underwriting criteria.

3

Maximizing and Unlocking
Value

The real estate properties that we evaluate forinvestment are typically not operated to theirmaximum potential at the time of our investment.
Some owners are not professional real estate
investors, failed to invest necessary capital
expenditures, and/or had poorly managed leasing
strategies. Some real estate properties havecertain compliance issues that can be cured withlimited cost and time, or have potential to generatehigher net operating income if repositioned or
repurposed properly. We utilize our own
experience along with technical advice from thirdparty professionals, as necessary, to formulate andexecute the optimal asset management, capital
expenditures, renovation, and repositioning plans.
Implementation of these plans will maximize andunlock the property’s intrinsic value in the mostefficient manner from a cost and time perspective.

6

Dependability, Transparency
and Decisive Action

Our trade counterparties know that they candepend on us when they need to sell their realestate related assets quickly, discreetly and/or
through a complex structure that others may not beable to handle or understand. We are always
candid and transparent by clearly explaining ourrequirements up front including expected deal
economics, our strict due diligence process, andthen work tirelessly and creatively to meet thecounterparty’s specific objectives and timing. Ourflat organization and highly efficient, decisionmaking process allows us to be very flexible,
tactical and decisive. This philosophy andexecution style are valued by our trade
counterparties who repeatedly bring attractive
investment opportunities that reward our clientswith outsized returns.

45

Status of Unitholders （at the End of 17th Fiscal Period ended July 2024)
Number of investment units by attribute: Total 2,372,000 units
Category

End of 16FP

End of 17FP

Unitholder name534,36322.5%

514,58021.7%

916,63638.6%

966,82940.8%

70,436

3.0%

67,7842.9%

Foreign783,55333.0%

788,705

33.3%

Securities
company

67,012

2.8%

34,102

1.4%

Total

2,372,000

100.0%

2,372,000

100.0%

Financial
institution
Domestic
corporation

Number of unitholders by attribute: Total 30,350
Category

End of 16FP
No. of units

Individual

Ratio

1

Custody Bank of Japan, Ltd.
(Trust Account)374,31315.8%

2

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

364,959

15.4%

3

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

111,318

4.7%

4

NORTHERN TRUST CO. (AVFC) RE UKUC
UCITS CLIENTS NON LENDING 10 PCT
TREATY ACCOUNT

81,809

3.4%

5Star Asia Capital Ⅰ LLC

40,969

1.7%

5Star Asia Capital Ⅱ LLC

40,969

1.7%

5Star Asia Capital Ⅲ LLC

40,969

1.7%

5Star Asia Capital Ⅳ LLC

40,969

1.7%

9STATE STREET BANK AND TRUSTCOMPANY 505001

37,960

1.6%

10

STATE STREET BANK AND TRUSTCOMPANY 505001

37,816

1.6%

1,172,051

49.4%

End of 17FP

Ratio

29,57497.2%

29,496

97.2%

48

0.2%

50

0.2%

428

1.4%

412

1.4%

Foreign

343

1.1%

370

1.2%

Securities
company

22

0.1%

22

0.1%

Total

30,415100.0%

30,350100.0%

Financial
institution
Domestic
corporation

No. of units

Ratio

No. of units
Individual

List of major unitholders (Top 10)

Total*Star Asia Capital Ⅰ～ⅣLLC are Sponsor Group.

46

Change in business results(Unit: million yen)
12FP
(ended Jan. 2022)
actual

13FP
14FP(ended July 2022) (ended Jan. 2023)
actualactual15FP(ended July 2023)
actual16FP(ended Jan. 2024)
actual17FP(ended July 2024)
forecast*

17FP(ended Jan. 2024)
actual

7,524
2,088
1,012
1,183
877
1,666
695

7,894
2,137
1,046
1,265
914
1,877
652

8,048
2,133
1,040
1,260
914
2,038
660

+153
△4
△6
△4
+161
+7

Comparison
with forecast

5,890
1,900
842
1,152
910
425
660

6,060
1,974
847
1,215
910
426
686

6,463
2,036
1,038
1,225
914
537
710

6,503
2,077
1,048
1,227
869
581
700

1,629

1,796

1,812

1,981

1,982

2,051

2,021

△30

4,261
682
3,579

4,263
697
3,565

4,650
743
3,907

4,521
763
3,758

5,542
963
4,578

5,842
1,034
4,807

6,026
1,034
4,992

+184
+0
+184

-

-

-

414

374

-

-

-

22
46

28
-

22
-

22

33
-

33

34

+0

-

-

-

-

6

31

31

31

-

546
3,047
2
489
2,560
2,560
0
2,559
1,476円
1,820円

580
3,349
1
568
2,782
2,782
0
2,781
1,491円
1,834円

595
3,606
1
534
3,073

FFO per unit

560
3,087
1
571
2,517
2,517
0
2,516
1,478 yen
1,787円

3,073
0
3,073
1,586円
1,780円

708
4,309
1
782
3,528
3,528
0
3,527
1,524円
1,735円

713
4,159
681
3,477
3,477
0
3,476
1,520円
1,902円

719
4,338
2
671
3,669
3,669
0
3,668
1,596円
1,982円

+5
+179
+2
△10
+192
+192
+192
76円
+80円

AFFO per unit

1,550円

1,556円

1,519円

1,370円

1,268円

1,536円

1,656円

+120円

8,967

8,886

8,802

8,828

8,741

8,612

8,624

+11

Lease business revenue
Office rent
Retail rent
Residence rent
Logistics rent
Hotel rent
Other
Expenses related to rent
business(Depreciation is excluded)
NOI
Depreciation
Rent revenues/expenses
Gain on sale of real estate
property
Mezzanine
TK distribution
Income from securities
lending fees
SGA
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Income before income taxes
taxes
Net income
Cash distribution per unit

Balance of Internal reserve***Announced in the 16th FP financial briefing report on March 15, 2024**The balance of internal reserves is calculated as the total of the temporary difference adjustment reserve plus unappropriated retained earnings as of the end of the period, minus distributions of profits for the period.

47

Balance Sheets
16th fiscal period(As of January 31, 2024)(Unit: thousand yen)

16th fiscal period(As of January 31, 2024)

17th fiscal period(As of July 31, 2024)(Unit: thousand yen)

17th fiscal period(As of July 31, 2024)

Deferred assets

AssetsCurrent assets
Cash and deposits

2,466,478

3,379,427

Cash and deposits in trust

9,186,964

8,945,505

319,557

443,175

Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
OthersTotal current assets

276,610

312,802

1,245,234-

18,49832,807

13,513,345

13,113,718

Non-current assets
Property, plant and equipment
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net

Investment corporation bond issuance costs

9,522

8,502

Investment unit issuance costs

65,14944,337

Total deferred assets
Total assets
Current liabilities

983,908

794,335

Short-term borrowings

1,300,000

1,000,000

Current portion of long-term borrowings

Operating accounts payable

13,285,000

11,085,000

Accounts payable - others

664,966

669,967

96,918107,831

114

114

Accrued expenses

(114)

(114)

Income taxes payable

00

Accrued consumption taxes

72,991,822

73,691,762

Advances received(7,735,645)(8,733,016)

OthersBuildings in trust, net

65,256,177

64,958,746

Total current liabilities

Structures in trust

52,840258,678,309

Liabilities

Accumulated depreciation

Buildings in trust

74,672
259,155,332

605

605

48,408438,633

1,028,917

1,160,537

26,84632,356

17,435,570

15,289,267

Non-current liabilities

37,67943,768

Accumulated depreciation(8,703)(10,290)

Investment corporation bonds

Structures in trust, net

28,97533,477Long-term borrowings

Machinery and equipment in trust

306,175

338,544

Leasehold and guarantee deposits received

Accumulated depreciation(58,216)△74,087

Leasehold and guarantee deposits received in trust

Machinery and equipment in trust, net

1,000,000

1,000,000

107,555,000

108,755,000

4,053

2,808

5,915,288

6,057,696
99,915247,958

264,457

Asset retirement obligations

98,969Tools, furniture and fixtures in trust

150,147

193,701

Others18,825-

Accumulated depreciation(54,677)(66,089)

Total non-current liabilities

114,592,137

115,915,419

132,027,707

131,204,686

89,316,185

89,316,185

25,132,218

25,132,218

Reserve for temporary difference adjustment

8,446,674※２ 8,357,762

Total voluntary reserve

8,446,674

8,357,762

3,909,364

4,052,316

Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment

95,470127,611

169,768,470

169,771,175

170-

235,397,221

235,155,469

Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
SurplusIntangible assets
Leasehold rights in trust

6,251,893

6,243,459

Unitholders’ capital surplus

Total intangible assets

6,251,893

6,243,459

Voluntary reserve

Investments and other assets
Investments in other securities of subsidiaries andUnappropriated retained earnings (undisposed loss)

associates

1,588,015

1,588,015

Investment securities

1,170,000

1,170,000

Total surplus

37,488,257

37,542,297

542,728

479,515

Total unitholders’ equity

126,804,443

126,858,483
615,139

Long-term prepaid expenses

Valuation and translation adjustments

Leasehold and guarantee deposits

10,23910,239Leasehold and guarantee deposits in trust

263,988263,988

Deferred gains or losses on hedges

323,181

Others343,228

601,063

Total valuation and translation adjustments

323,181615,139

3,918,199

4,112,822

127,127,624

127,473,622

245,567,314

245,511,751

259,155,332

258,678,309

Total investments and other assets
Total non-current assets

Total net assets
Total liabilities and net assets

48

Statement of Income(Unit: thousand yen)
16th fiscal period
From: August 1, 2023
To: January 31, 2024

17th fiscal period
From: February 1, 2024
To: July 31, 2024

Operating revenue
7,077,860

7,635,803

Other lease business revenue

447,056

412,199

Gain on sale of real estate

374,516-

Other revenue

65,43665,782

7,964,869

8,113,786

Rental revenue

Total operating revenue
Operating expenses

2,946,506

3,055,846

Asset management fee

512,727

542,424

Asset custody and administrative service fees

48,711

50,525

Directors’ compensations

2,400

2,400

Other operating expenses

144,769

123,739

Total operating expenses

3,655,114

3,774,935

4,309,754

4,338,850

Expenses related to rent business

Operating income
Non-operating income

58

62

1,583

1,163

Interest on refund

－

906

Other

－

0

1,642

2,132

463,491

504,833

Interest income
Reversal of unpaid distribution

Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses

3,500

3,500

294,089

141,244

Amortization of investment corporation bond issuance costs

1,020

1,020

Amortization of investment unit issuance costs

20,812

20,812782,913

671,409

Ordinary income

3,528,484

3,669,572

Income before income taxes

Total non-operating expenses

3,528,484

3,669,572

Income taxes - current

605

605

Total income taxes

605

605

3,527,879

3,668,967

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

381,485

383,349

3,909,364

4,052,316

49

Portfolio List (as of July 31, 2024)<Properties etc.>
Property nameLocation

AcquisitionPrice(mill)

Appraisalvalue(mill)

Investment
ratio
(%)

Appraisal
NOI yield(%)*

Minami-Azabu Shibuya Building

Minato-ku, Tokyo

2,973

3,040

1.2

4.5

Honmachibashi Tower

Osaka-shi, Osaka

6,065

7,100

2.5

5.0

Nishi-Shinjuku Matsuya Building

Shibuya-ku, Tokyo

1,763

2,740

0.7

Urban Center Shibuya East

Shibuya-ku, Tokyo

2,042

3,300

0.8

Investment
ratio
(%)

Appraisal
NOI yield
(%)*

2,045

2,990

0.8

4.5

6,315

10,300

2.6

4.8

Osaka-shi, Osaka

1,490

1,540

0.6

5.0

Urban Park Kashiwa

Kashiwa-shi, Chiba

1,186

1,240

0.5

4.8

Urban Park Ryokuchi-koen

1,550

1,730

0.6

5.6

1,810

2,160

0.7

4.8

Urban Park Gyotoku

Suita-shi, Osaka
Yokohama-shi,
Kanagawa
Ichikawa-shi, Chiba

1,430

1,610

0.6

4.7

Shiroi Logiman

Shiroi-shi, Chiba

2,470

2,580

1.0

5.5

Urban Park Sekime

Osaka-shi, Osaka

2,150

2,450

0.9

5.3

Urban Park Imazato

Osaka-shi, Osaka

993

1,090

0.4

5.5

Urban Park Yoyogi

1,740

2,020

0.7

3.7

3,506

4,250

1.4

5.6

3,160

3,760

1.3

5.6

1,115

1,350

0.5

4.6

2,019

2,100

0.8

4.6

1,060

1,250

0.4

4.9

1,113

1,190

0.5

4.8

743

1,010

0.3

5.0

AcquisitionPrice(mill)

Urban Park Azabujuban

Minato-ku, Tokyo

Urban Park Daikanyama

Shibuya-ku, Tokyo

6.9

Urban Park Namba

5.6
5.0

Yokohama-shi,
Kanagawa
Fukuoka-shi,
Fukuoka

6,320
2,286

3,300

0.9

6.6

Nihonbashi Hamacho Park Building
Amusement Media Gakuin
HonkanHigashi Kobe Center Building
Amusement Media Gakuin
ShinkanUrban Center Shinjuku

Chuo-ku, Tokyo

1,450

1,510

0.6

4.3

Shibuya-ku, Tokyo

2,580

2,710

1.1

3.9

Kobe-shi, Hyogo

7,600

7,460

3.1

5.2

Shibuya-ku, Tokyo

1,020

1,220

0.4

4.0

Shinjuku-ku, Tokyo

11,20011,800

4.6

3.6

Urban Center Kanda Suda cho

Chiyoda-ku, Tokyo

5,350

5,420

2.2

3.7

Urban Center Kanda

Chiyoda-ku, Tokyo

4,590

4,570

1.9

3.7

Takadanobaba AccessShinjyuku-ku, Tokyo

3,990

3,810

1.6

3.8

Azabu Amerex Building

Minato-ku, Tokyo

2,780

2,920

1.1

3.7

Urban Park Mizonokuchi

Hiei-Kudan Building

Chiyoda-ku, Tokyo

2,400

2,420

1.0

3.6

Urban Park Miyamaedaira

Urban Center Shin-Yokohama

Yokohama-shi,
Kanagawa

2,300

2,650

0.9

5.1

Urban Park Tsurumi

The Portal Akihabara

Chiyoda-ku, Tokyo

1,510

1,490

0.6

3.8

Urban Park Mitaka

Shibuya-ku, Tokyo
Yokohama-shi,
Kanagawa
Yokohama-shi,
Kanagawa
Sumida-ku, Tokyo
Kawasaki-shi,
Kanagawa
Kawasaki-shi,
Kanagawa
Yokohama-shi,
Kanagawa
Mitaka-shi, Tokyo

Tachikawa-shi,Tokyo
Fukuoka-shi,
FukuokaFujisawa-shi,
Kanagawa

1,804

2,060

0.7

5.2

Urban Park Kamata MinamiⅠ

Ota-ku, Tokyo

641

881

0.3

5.1

2,870

3,290

1.2

4.3

Urban Park Kamata MinamiⅡ

Ota-ku, Tokyo

1,375

1,770

0.6

5.1

Urban Park Umejima

Adachi-ku, Tokyo

1,032

1,220

0.4

4.4

2,054

2,210

0.8

5.6

38,94348,49116.0

5.0

74,94783,54030.7

4.5

Iwatsuki Logistics

Saitama-shi, Saitama

6,942

7,650

2.8

4.8

Urban Center Yokohama West
Hakata-eki East PlaceUrban Center Tachikawa
Urban Center Hakata
Urban Center Fujisawa
Office Subtotal

8,520

2.6

Urban Park Ichigao

Residence

OfficeAppraisalvalue(mill)

Location

Property nameUrban Park Tokiwadai Koen
Urban Park Mitsuike Koen
Urban Park Ryogoku

Residence Subtotal

Kishiwada-shi, Osaka

5,400

5,170

2.2

7.1

Yokohama Logistics

Yokohama-shi,
Kanagawa

3,560

4,170

1.5

5.7

Suroy Mall Chikushino

Chikushino-shi,
Fukuoka

6,550

6,580

2.7

5.8

Funabashi Logistics

Funabashi-shi, Chiba

7,875

8,770

3.2

5.2

Seiyu Minakuchi

Koka-shi, Shiga

3,320

3,340

1.4

7.4

Baraki Logistics

Ichikawa-shi, Chiba

4,700

5,220

4.1

BAGUS Ikebukuro West

Toshima-ku, Tokyo

2,984

3,500

1.2

4.1

Tokoyozawa Logistics

Tokorozawa-shi,
Saitama

1.9

1,300

1,550

0.5

5.8

Funabashi Nishiura Logistics Ⅱ

Funabashi-shi, Chiba

821

911

Matsubushi Logistics

Kita-Katsushika-gun,
Saitama

0.3

7.2

2,755

3,310

1.1

5.7

Funabashi Hi-Tech Park Ⅰ

Funabashi-shi, Chiba

1,997

2,200

0.8

7.0

29,95033,781

12.3

5.2

abeno nini (Retail)Osaka-shi, Osaka
Retail Subtotal

9,500

10,6003.9

4.2

27,75429,190

11.4

5.5

Logistics

Retail

La Park Kishiwada

Logistics Subtotal*“Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of the property in the real estate appraisal report, rounded to the second decimal place.

50

Portfolio List (as of July 31, 2024)< Properties etc.>
Property nameLocation

AcquisitionPrice(mill)

Appraisalvalue(mill)

Investment
ratio
(%)

Appraisal
NOI yield(%)*1

Period-end appraisal value：

270,882 million yen

Total book value：

241,396 million yen

Period-end unrealized gains (losses)：

29,483 million yen

Net assets per unit：

53,740 yen

R&B Hotel Umeda East

Osaka-shi, Osaka

2,069

2,430

0.8

5.7

Smile Hotel Namba

Osaka-shi, Osaka

1,750

1,490

0.7

4.3

REMBRANDT STYLE Tokyo Nishikasai

Edogawa-ku, Tokyo

3,827

3,500

4.2

Yokohama-shi,
Kanagawa
Fukuoka-shi,
Fukuoka

1.6

3,248

3,090

1.3

4.5

1,970

2,040

0.8

4.7

Unrealized gains per unit：

12,430 yen

NAV per unit (*1)：

64,574 yen

P/NAV per (*2)

：

0.88

Best Western Yokohama
The BREAKFAST HOTEL Fukuoka Tenjin
GLANSIT AKIHABARA

Chiyoda-ku, Tokyo

2,500

2,440

1.0

3.9

REMBRANDT STYLE Tokyo Nishikasai Grande

Edogawa-ku, Tokyo

3,180

3,110

1.3

4.0

KOKO HOTEL Osaka Namba

Osaka-shi, Osaka

2,000

1,780

0.8

4.2

Hotel

abeno nini (Hotel)

Osaka-shi, Osaka

3,600

3,950

1.5

4.8

KOKO HOTEL Ginza 1-Chome

Chuo-ku, Tokyo

17,80021,100

4.3

Sapporo-shi,
Hokkaido
Fukuoka-shi,
Fukuoka
Hiroshima-shi,
Hiroshima
Kagoshima-shi,
Kagoshima
Sapporo-shi,
Hokkaido
Fukuoka-shi,
Fukuoka

7.3

6,700

7,720

2.7

5.2

5,000

5,500

2.1

4.7

4,100

4,430

1.7

5.2

3,800

4,280

1.6

6.0

4,200

4,370

1.7

4.6

3,800

4,650

1.6

6.9

69,54475,88028.5

408

241,138

270,822

98.9

4.9

KOKO HOTEL Sapporo Ekimae
KOKO HOTEL Fukuoka Tenjin
KOKO HOTEL Hiroshima Ekimae
KOKO HOTEL Kagoshima Tenmonkan
KOKO HOTEL Sapporo OdoriBest Western Plus Fukuoka Tenjin-minami

Hotel Subtotal
Total* NAV per unit = (Period-end net assets + Period-end unrealized gains – Total cash
distribution) / Total number of investment units issued and outstanding** P/NAV per ＝Investment unit price / NAV per unit (Investment unit price on July 31,
2024: 56,800 yen)

< Mezzanine loan debt investment / Preferred equity security>No.
MEZ-07
MEZ-08
TK-03

Name of the security（asset overview）

Type

Star Asia Mezzanine Loan Debt Investment Series 7Star Asia Mezzanine Loan Debt Investment Series 8 A
Star Asia Mezzanine Loan Debt Investment Series 8 B
GSA JP Project 1 Tokutei Mokuteki Kaisha Preferred
Equity Securities
Total

Corporate bond
Trust beneficiaryinterest
Trust beneficiaryinterest
Preferred equity
security

Interest rate *2

AcquisitionPrice(mill)

Investment
ratio
(%)

Underlying asset, etc.
Asset nameBase rate +5.0%400

0.2 Quintessa Hotel Tokyo Haneda Comic & Books

Base rate +5.3%

430

0.2

Base rate +7.3%

340

0.1

（Lending Fee 4.0%）

Centurion Hotel Grand Akasaka

1,562

0.6 HAKUSAN HOUSE

2,732

1.1

Location
Ota-ku,Tokyo
Minato-ku,
Tokyo
Minato-ku,
TokyoBunkyo-ku,
Tokyo*1：“Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of the property in the real estate appraisal report, rounded to the second decimal place.
*2 The base interest rate : JBA 3-month yen TIBOR

51

Portfolio List (Acquired on or after August 1, 2024)< Properties etc.>
Property nameRetailUrban Forum Warabi

Location

AcquisitionPrice(mill)

Appraisalvalue (mill)Appraisal
NOI yield(%) *1

Kawaguchi-shi,
Saitama

1,100

1,210

4.7

1,100

1,210

4.7

Retail Subtotal

Hotel

KOKO HOTEL Tsukiji Ginza

Chuo-ku, Tokyo

17,00018,800

4.4

KOKO HOTEL Residence Asakusa Kappabashi

Taito-ku, Tokyo

4,300

5,060

5.0

KOKO HOTEL Residence Asakusa Tawaramachi

Taito-ku, Tokyo

5,900

6,780

4.9

KOKO HOTEL Osaka Shinsaibashi

Osaka-shi, Osaka

7,500

7,990

4.6

Hotel Subtotal

34,70038,6304.6

Total

35,80039,840

4.6< Mezzanine loan debt investment / Preferred equity security>No.
MEZ-09Name of the security（asset overview）

Type

Star Asia Mezzanine Loan Debt Investment Series 9
Total

Trust beneficial
interest

Interest rate *2
Base rate +5.0%

AcquisitionPrice(mill)

Underlying asset, etc.
Asset name130 hotel androoms Shin-Osaka

Location
Osaka-shi, Osaka

130*1 “Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of the property in the real estate appraisal report, rounded to the second decimal place.
*2 The base interest rate : JBA 3-month yen TIBOR

52

Balance of Payments of Individual Properties (1)Asset Type
Property nameAcquisition priceAppraisal value
Structure/Floors
Location
Lot area
Total floor areas
Construction completion

OFC-01
Minami-Azabu Shibuya
Building

OFC-03
Honmachibashi Tower（Unit : Thousand yen）
OFC-09OFC-04
Nishi-Shinjuku Matsuya
Building

OFC-06
Urban Center
Shibuya East

OFC-08
Urban Center
Yokohama West6,320 million yen
8,520 million yen
S,SRC and RC B2F/12F
Yokohama-shi, Kanagawa

2,286 million yen
3,300 million yen
SRC 9F
Fukuoka-shi, Fukuoka

Hakata-eki East Place

2,973 million yen
3,040 million yen
SRC B1F/7F
Minato-ku, Tokyo

6,065 million yen
7,100 million yen
S and SRC B1F/21F
Osaka-shi, Osaka

1,763 million yen
2,740 million yen
SRC B1F/9F
Shibuya-ku, Tokyo

2,042 million yen
3,300 million yen
S 6F
Shibuya-ku, Tokyo

766.11㎡ (Leasehold)1,274.37㎡

589.94㎡(surface right)

620.42㎡(of which 2.62 m² leasehold)1,096.86㎡

1,129.86㎡

4,137.21㎡
June 15, 1993

15,407.83㎡
February 8, 2010

5,117.80㎡
May 28, 1987

1,982.86㎡
July 31, 1993

12,353.83㎡
November 25, 1994

6,243.13㎡
February 24, 1986

FP16

FP17

FP16

FP17

FP16

FP17

FP16

FP17

FP16

FP17

99,582

100,390249,511

247,040

122,357

121,50774,45566,299232,635

230,435

114,087

114,477

92,251

92,224

216,316

217,020

109,154

109,636

71,16363,527

211,707

211,838

104,209107,767

7,330

8,166

33,19530,01913,203

11,870

3,291

2,772

20,92818,597

9,877

6,710

Total operating expenses
from real estate leasing

29,01828,84882,21973,711

34,87537,394

18,65913,71764,50657,07332,02328,626

Management fee

6,020

6,033

15,197

17,457

7,257

6,974

5,294

5,229

14,944

15,608

9,292

8,362

Utilities expenses

6,149

6,035

28,00827,964

9,796

9,453

2,422

2,282

21,376

20,079

8,594

7,339

Taxes and dues

4,480

4,472

20,01920,264

3,401

3,374

4,681

4,853

16,365

16,497

7,711

8,274

Repair expenses

1,199

314

16,047

1,336

1,314

4,499

1,098

652

10,353

2,845

1,810

806

388

388

400

400

400

400

350

350

400

400

400

400

Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue

Trust fee

FP16

FP17

156

204

487

665

174

229

61

89

504

645

227

309

10,624

11,400

2,060

5,623

12,531

12,462

4,751

260

562

997

3,988

3,134

NOI

70,56371,541

167,291

173,328

87,482

84,112

55,79552,582

168,129

173,362

82,06385,851

Depreciation

14,017

14,20745,782

46,524

11,093

11,810

3,996

4,004

31,64933,372

13,076

13,714

Operating income (loss)
from real estate leasing

56,54557,334

121,509126,804

76,38872,301

51,79948,577

136,479

139,990

68,987

72,136

Insurance premium
Other expenses

Capital expenditures

7,287

-

20,307

5,825

15,232

17,184-780

43,508

14,112

8,712

24,456

NCF

63,27571,541

146,984

167,50372,24966,92755,79551,801

124,621

159,249

73,351

61,394

Period-end book value(million yen)

2,961

2,947

5,531

5,490

1,803

1,809

2,081

2,078

6,282

6,263

2,413

2,424

53

Balance of Payments of Individual Properties (2)（Unit : Thousand yen）
Asset Type
Property nameAcquisition priceAppraisal value
Structure/Floors
Location
Lot area
Total floor areas
Construction completion

OFC-10
OFC-11
Nihonbashi Hamacho Park Amusement Media Gakuin
Building
Honkan1,450 million yen
1,510 million yen
SRC 11F
Chuo-ku, Tokyo
319.04㎡ (derived by multiplying the ratio ofholdings）
2,384.03㎡ (derived by multiplying the ratioof holdings）

July 13, 1992
FP16

Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue
Total operating expenses
from real estate leasing

FP17

OFC-12
Higashi Kobe Center
Building

OFC-13
Amusement Media Gakuin
Shinkan

2,580 million yen
2,710 million yen
SRC and S B1F/8F
Shibuya-ku, Tokyo
433.21㎡
1,892.18㎡
November 2, 1994

7,600 million yen
7,460 million yen
S and SRC 14F
Kobe-shi, Hyogo
8,488.11㎡
25,740.46㎡
January 6, 1992

1,020 million yen
1,220 million yen
RC ７F
Shibuya-ku, Tokyo
203.43㎡
913.71㎡
January 25, 1999

11,200 million yen
11,800 million yen
SRC B1F/10F
Shinjuku-ku, Tokyo
886.93㎡
7,624.66㎡
March 31, 1989

5,350 million yen
5,420 million yen
SRC B1F/10F
Chiyoda-ku, Tokyo
590.72㎡
4,994.70㎡
October 28, 1991

FP16

FP16

FP17

FP16

FP16

FP17

FP16

FP17

FP17

OFC-14
Urban Center Shinjuku

FP17

OFC-15
Urban Center
Kanda Suda-cho

52,08952,089327,805

317,175

203,719

239,103

141,512140,854

52,08952,089290,004

285,424

191,055

224,754

135,466

135,706--

37,80031,751

12,663

14,349

6,046

5,148

13,472

14,595

124,476

136,016

62,876

77,60636,80841,766

Management fee

885

885

24,60832,47921,47018,445

12,50011,713

Utilities expenses--

40,16338,291

9,521

9,510

5,828

5,227

（※）

（※）

（※）

（※）

Taxes and dues

4,510

4,664

29,84930,85822,79324,27011,453

11,733

Repair expenses

312

50

16,51918,496

7,056

14,777

6,126

11,806

Trust fee

400

400

400

400

350

350

350

350
281

Insurance premium

184

262

985

1,246

299

378

219

7,179

8,333

11,94914,244

1,385

9,873

329

654

NOI

38,61637,49350,88450,666203,329

181,159

19,56820,338140,842

161,496

104,703

99,087

Depreciation
Operating income (loss)
from real estate leasing

3,137

3,137

4,653

4,753

50,50957,044

1,706

1,805

22,00822,613

9,777

10,04435,47934,355

46,23145,913

152,820

124,114

17,861

18,533

118,833

138,883

94,92689,043

-

-

2,005

3,382

139,640

267,171-

46,221

15,789

5,106

3,297

NCF

38,61637,493

48,87947,284

63,688△86,0113,777
15,79020,338

94,620145,707

99,597

95,790Period-end book value(million yen)

1,445

1,442

2,575

2,573

7,995

8,208

1,034

1,032

11,43911,432

5,344

5,337

Other expenses

Capital expenditures（※）Not disclosed as consent for disclosure has not been obtained from the tenant.

54

Balance of Payments of Individual Properties (3)（Unit : Thousand yen）
Asset Type
Property name

OFC-16
Urban Center
Kanda Tsukasamachi

OFC-17

OFC-18OFC-19

Takadanobaba Access

Azabu Amerex Building

Hiei Kudan Building

OFC-20Urban Center
Shin-Yokohama

OFC-21The Portal Akihabara

Acquisition price

4,590 million yen

3,990 million yen

2,780 million yen

2,400 million yen

2,300 million yen

1,510 million yen

Appraisal value

4,570 million yen

3,810 million yen

2,920 million yen

2,420 million yen

2,650 million yen

1,490 million yen

Structure/Floors

SRC B1F/8F

S and SRC B1F/14F

SRC B1F/8F

SRC and S B1F/11F

S and SRC B1F/11F

SRC and S 8F

Location

Chiyoda-ku, Tokyo

Shinjuku-ku, Tokyo

Minato-ku, Tokyo

Chiyoda-ku, Tokyo

Yokohama-shi, Kanagawa

Chiyoda-ku, Tokyo

Lot area

709.52㎡

930.70㎡

601.71㎡

700.59㎡

184.76㎡

Total floor areas

4,629.27㎡

5,757.14㎡

2,909.80㎡

478.27㎡（Number derived bymultiplying the ratio of holdings）
3,205.72㎡（Number derived bymultiplying the ratio of holdings）

5,356.99㎡

1,010.67㎡

June 30, 1988

September 17, 1991

Construction completion

January 20, 1988

January 14, 1994

FP16

FP17

FP16

FP17

Total operating revenue
from real estate leasing

103,932

101,475

107,817

113,80774,01275,02970,03469,99287,28987,45328,51835,002

Lease businessrevenue

98,983

96,83999,891102,065

69,33370,90270,03469,99279,805

81,522

22,89229,507

Other lease businessrevenue

4,949

4,635

7,926

11,742

4,678

4,127

-

-

7,484

5,931

5,626

5,495

Total operating expenses
from real estate leasing

24,98528,72145,68634,72725,52722,06524,29624,23030,68432,504

13,177

8,451

Depreciation

9,637
5,354
7,917
1,015
400
212
449
78,946
13,493

9,583
5,415
8,325
2,275
400
271
2,450
72,753
13,75014,5697,883
9,552
11,028
400
231
2,021
62,131
11,716

13,086
7,933
9,780
2,601
400
293
631
79,08013,052

7,480
3,093
8,256
5,810
375
109
401
48,484
4,064

7,694
3,132
8,716
1,941
375
140
66
52,964
4,401

3,566
25
7,205
424
500
194
12,37945,737
4,027

3,566
26
7,382
500
256
12,49945,761
4,027

9,542
7,066
8,093
4,684
350
200
747
56,605
16,207

9,070
6,308
8,297
6,798
350
251
1,428
54,94817,133

2,510
1,171
1,642
3,113
400
41
4,297
15,341
3,989

2,731
1,381
1,695
826
400
52
1,363
26,551
4,063

Operating income (loss)
from real estate leasing

65,45359,00350,41466,02844,41948,562

41,71041,73440,39737,814

11,352

22,487

3,823
75,123

7,428
65,324

31,86730,2639,900
69,1807,936
40,547

9,258
43,70545,73745,761

30,34026,26463,784△8,836850
14,491

2,582
23,968

4,719

4,712

4,026

4,022

2,787

2,792

2,382

2,378

2,481

2,528

1,499

1,498

Management fee
Utilities expenses
Taxes and dues
Repair expenses
Trust fee
Insurance premium
Other expenses
NOI

Capital expenditures
NCF
Period-end book value(million yen)

FP16

FP17

FP16

March 17, 1992

FP17

FP16

FP17

May 31, 2002
FP16

FP17

55

Balance of Payments of Individual Properties (4)（Unit : Thousand yen）
Asset Type
Property name

OFC-22
Urban Center Tachikawa

OFC-23
Urban Center Hakata

OFC-24
Urban Center Fujisawa

Acquisition price

1,804 million yen

2,870 million yen

2,054 million yen

Appraisal value

2,060 million yen

3,290 million yen

2,210 million yen

Structure/Floors

RC and S B1F/6F

S 8F

SRC B1F/8F

Location

Tachikawa-shi, Tokyo

Fukuoka-shi, Fukuoka

Fujisawa-shi, Kanagawa

Lot area

964.80㎡

656.72㎡

1,005.52㎡

4,659.20㎡
May 30, 1990

3,566.56㎡
August 27, 2020

4,392.71㎡
April 9, 1991

Total floor areas
Construction completion

FP16

FP17

FP16

FP17

FP16

FP17

Total operating revenue
from real estate leasing

62,21463,35280,08885,37380,56680,990

Lease businessrevenue

58,60959,33376,72780,78173,506

74,125

Other lease businessrevenue

3,604

4,019

3,360

4,592

7,060

6,864

Total operating expenses
from real estate leasing

19,994

18,916

19,595

17,787

19,97018,409Depreciation

6,032
3,736
4,549
4,373
400
150
753
42,219
8,362

5,032
3,966
4,633
4,010
400
212
661
44,435
9,058

5,673
3,851
6,424
57
400
128
3,060
60,493
15,281

5,215
5,131
6,578
63
400
187
211
67,585
15,281

4,694
6,533
4,185
3,341
400
154
661
60,595
7,666

4,627
6,099
4,203
1,987
400
214
875
62,581
7,898

Operating income (loss)
from real estate leasing

33,85735,37745,21152,30352,92954,682

38,9453,273

1,208
43,22760,49367,585

8,934
51,6603,512
59,068

1,935

1,927

2,824

2,808

2,196

2,192

Management fee
Utilities expenses
Taxes and dues
Repair expenses
Trust fee
Insurance premium
Other expenses
NOI

Capital expenditures
NCF
Period-end book value(million yen)56

Balance of Payments of Individual Properties (5)（Unit : Thousand yen）
Asset Type
Property name

RTL-01
LaPark Kishiwada

RTL-02
Suroy Mall Chikushino

RTL-03
Seiyu Minakuchi

RTL-05
BAGUS Ikebukuro West

RTL-06abeno nini (Retail)RTL-07
Urban Forum Warabi

Acquisition price5,400 million yen

6,550 million yen

3,320 million yen

2,984 million yen

9,500 million yen

1,100 million yen

Appraisal value

5,170 million yen

6,580 million yen

3,340 million yen

3,500 million yen

10,600 million yen

1,210 million yen

RC and S 3F

S 1F (A, CD, EFG, HIJ, KLM, O,
QRSTUY, V, W and X buliding)
S 2F (B and P building)

S 4F

S and RC B2F/8F

RC B2F/24F

S 6F

Structure/Floors
Location
Lot area
Total floor areas
Construction completion

Kishiwada-shi, Osaka

Chikushino-shi, Fukuoka

Koka-shi, Shiga

Toshima-ku, Tokyo

Osaka-shi, Osaka

Kawaguchi-shi, Saitama

39,779.74㎡

121,423.46㎡（Also has leased
land of 25,321.5㎡ for use as aparking lot.)

19,917.56㎡ (of which leased land is
16,444.53㎡)

264.15㎡

633.90㎡

408.90㎡

65,663.02㎡
August 30, 1994

31,028.62㎡
June 22, 2007

31,829.71㎡
May 31, 1999

1,497.45㎡
November 20, 1992

4,866.82㎡
January 31, 2012

1,489.22㎡
December 1, 2023

FP16

FP16

FP17

FP16

FP17

FP16

FP17

FP16

FP17

Total operating revenue
from real estate leasing

525,138

508,209

270,794

277,023

219,340

223,804--

Lease businessrevenue

414,095

409,783

222,869

249,875

219,340

223,804--

Other lease businessrevenue

111,043

98,42547,924

27,148----

Total operating expenses
from real estate leasing

319,618

311,931

99,301

84,46931,641

28,467--

115,034
124,260
43,38911,915
3,078
1,520
12,732
196,277
33,48926,126
9,568
20,80333,507
500
643
8,150
171,493
24,432

26,19027,77021,927
3,713
350
799
3,717
192,554
25,213

1,200
8,620
350
217
18,078
195,336
16,639

-

-

-

-

-

-

Depreciation

113,245
128,668
44,193
12,2941,850
1,224
18,143
205,519
31,194

Operating income (loss)
from real estate leasing

174,325

162,788

147,060

77,222
128,297

67,789128,487

5,545

5,580

Management fee
Utilities expenses
Taxes and dues
Repair expenses
Trust fee
Insurance premium
Other expenses
NOI

Capital expenditures
NCF
Period-end book value(million yen)

FP16

（※）

FP17

（※）

（※ ）

FP17

（※）

127,072
26,833

127,620
27,846

61,734
2,341

61,137
2,350

1,200
8,253
32
350
155
21,649187,698
16,639167,341

100,238

99,77359,39358,786

171,058

178,697-

60,599110,893

1,614
190,940

12,608114,464

41,56986,051

61,734

1,519
59,617

187,698

195,336

-

-

-

-

6,442

6,418

3,189

3,203

2,998

2,997

9,555

9,539

-

-

(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

-

-

-

-

-

-

-

-

-

-

-

-

57

Balance of Payments of Individual Properties (6)Sold（Unit : Thousand yen）
RSC-10Urban Park Ichigao

Asset Type
Property name

RSC-01
Urban Park Azabujuban

RSC-02
Urban Park Daikanyama

RSC-05
Urban Park Namba

RSC-07
Urban Park Kashiwa

RSC-08
Urban Park Ryokuchi-koen

Acquisition priceAppraisal value

2,045 million yen
2,990 million yen

6,315 million yen
10,300 million yen

1,490 million yen
1,540 million yen

1,186 million yen
1,240 million yen

1,550 million yen
1,730 million yen

Structure/Floors

SRC B1F/12F

1.Existing building : RC B1F/3F
2. Extension building : RC B1F/9F

RC 14FSRC B1F/8F

Apartment house: RC 8F
Parking: RC 3F

RC SF B1F/8F

Location

Minato-ku, Tokyo

Shibuya-ku, Tokyo

Osaka-shi, Osaka

Kashiwa-shi, Chiba

Suita-shi, Osaka

Yokohama-shi, Kanagawa

Lot area

417.67㎡

2,469.06㎡

670.39㎡

1,597.85㎡

2,804.56㎡

1,758.84㎡

Total floor areas
Construction completion

2,564.94㎡
FP16

Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue

8,261.29㎡

November 29, 1999
FP17

1: November 15, 1982
2: May 30, 2006

FP16

FP17

1,810 million yen
2,160 million yen

2,776.87㎡

4,243.71㎡

5,854.64㎡

5,243.85㎡

January 9, 2013

August 28, 1997

March 10,1989

July 10, 1998

FP16

FP17

FP16

FP17

FP16

FP17

FP16

FP17

59,594

59,693

200,432

196,535

46,64749,082

39,04639,35660,01660,54658,35959,302

55,97357,528

191,602

186,826

46,24948,20538,32937,13456,97957,172

57,10356,908

3,620

2,165

8,829

9,708

398

876

717

2,222

3,037

3,374

1,256

2,393

Total operating expenses
from real estate leasing

13,317

14,67434,397

36,836

14,295

13,2607,225

12,32516,021

15,50314,013

17,715

Management fee

2,407

2,204

10,229

9,709

2,950

2,650

1,916

2,109

2,523

2,491

2,973

3,515

Utilities expenses

608

600

3,340

3,330

327

359

503

555

2,426

2,428

1,209

1,233

Taxes and dues

2,996

3,053

12,211

12,532

2,892

2,921

2,956

2,973

3,592

3,646

3,961

4,023

Repair expenses

4,289

4,810

4,696

3,091

4,097

3,349

787

4,938

4,218

4,088

5,009

7,218

350

350

350

350

350

350

350

350

350

350

400

400

77

102

252

335

88

112

116

159

169

227

152

193

Trust fee
Insurance premium

2,588

3,552

3,318

7,487

3,589

3,517

596

1,240

2,741

2,270

306

1,131

NOI

46,27645,019166,034

159,698

32,35235,821

31,82027,03043,99445,04344,346

41,586

Depreciation

5,289

5,396

13,18013,472

8,044

8,046

7,670

7,722

8,923

8,898

6,367

6,466

Operating income (loss)
from real estate leasing

40,986

39,622

152,853

146,226

24,307

27,77424,15019,30835,07136,14537,97835,120

Other expenses

Capital expenditures

9,073

3,808

11,233

1,785

-

115

847

1,657

754

1,039

4,183

144

NCF
Period-end book value(million yen)

37,202

41,210154,800

157,91332,35235,70530,97325,373

43,23944,00340,16341,441

2,065

2,064

6,328

6,316

1,461

1,453

1,202

1,196

1,572

1,564

1,920

1,913

58

Balance of Payments of Individual Properties (7)（Unit : Thousand yen）
Asset Type
Property name

RSC-11

RSC-12

RSC-13

RSC-14

RSC-15

Urban Park Gyotoku

Shiroi Logiman

Urban Park Sekime

Urban Park Imazato

Urban Park Yoyogi

RSC-16
Urban Park
Tokiwadai Koen

Acquisition price

1,430 million yen

2,470 million yen

2,150 million yen

993 million yen

1,740 million yen

3,506 million yen

Appraisal value

1,610 million yen

2,580 million yen

2,450 million yen

1,090 million yen

2,020 million yen

4,250 million yen

Structure/Floors

SRC 10F

RC 13F

SRC 15F

RC 10F

RC 8F

RC 5F

Location

Ichikawa-shi, Chiba

Shiroi-shi, Chiba

Osaka-shi, Osaka

Osaka-shi, Osaka

Shibuya-ku, Tokyo

Yokohama-shi, Kanagawa

Lot area

1,122.57㎡

2,346.39㎡

1,803.70㎡

464.09㎡

12,544.61㎡

Total floor areas
Construction completion

3,397.95㎡

11,485.06㎡ （derived bymultiplying the ratio of holdings）
22,448.08㎡ （derived bymultiplying the ratio of holdings）

March 1, 1995

May 9, 1995

FP16

4,862.83㎡

1,418.03㎡

15,708.08㎡

December 20, 1991

September 4, 2017

Feb 17, 1994

FP16

FP16

FP16

FP16

FP17

45,316

143,832

142,506

85,09786,64737,49740,53545,95937,93742,136

137,163

136,265

82,77482,54437,03540,149Other lease businessrevenue

1,629

3,180

6,669

6,240

2,322

4,103

461

Total operating expenses
from real estate leasing

10,134

9,664

67,112

69,164

26,28829,943

Management fee

2,056

2,402

6,238

6,121

9,743

Utilities expenses

1,021

2,360

49

50

1,989

Taxes and dues

2,192

2,470

13,91013,882

Repair expenses

2,623

1,109

13,535

400

400

750

101

131

Total operating revenue
from real estate leasing

39,566

Lease businessrevenue

Trust fee
Insurance premium

FP178,190.11㎡
August 18, 1989
FP17

FP17

FP17

FP16

FP17

42,472

148,263

152,40941,781

40,086

142,521145,011

386

4,177

2,385

5,742

7,398

17,70913,515

8,544

9,864

41,57837,982

9,552

4,647

3,899

2,325

2,253

11,86011,590

2,360

277

258

312

319

1,382

1,354

5,295

5,325

3,194

3,216

2,033

2,026

10,762

10,94615,178

6,554

9,309

7,752

3,915

1,151

1,819

12,322

8,701

750

375

375

375

375

400

400

400

400

852

1,084

296

377

150

190

52

70

434

553

1,739

790

31,77632,097

2,032

2,642

1,312

1,659

2,268

2,975

4,415

4,436

NOI

29,43135,651

76,72073,34258,80956,704

19,78827,01937,41432,607

106,684

114,427

Depreciation

4,508

4,605

19,453

19,466

13,895

14,189

5,475

5,710

4,393

4,393

15,087

15,474

Operating income (loss)
from real estate leasing

24,922

31,04657,26753,87644,91442,514

14,313

21,30933,021

28,21391,596

98,952Other expenses

Capital expenditures

1,768

9,027

985

555

6,603

4,361

5,958

3,153

-

-

7,776

7,839

NCF
Period-end book value(million yen)

27,663

26,62475,73472,78652,20552,342

13,82923,86637,41432,607

98,907

106,588

1,497

1,501

2,342

2,323

2,187

2,177

965

963

1,709

1,704

3,635

3,627

59

Balance of Payments of Individual Properties (8)（Unit : Thousand yen）
Asset Type
Property nameAcquisition priceAppraisal value

RSC-17
Urban Park
Mitsuike Koen

3,160 million yen
3,760 million yen

Structure/Floors

RSC-18

RSC-19

RSC-20

RSC-21

RSC-22

Urban Park Ryogoku

Urban Park Mizonokuchi

Urban Park Miyamaedaira

Urban Park Tsurumi

Urban Park Mitaka

1,115 million yen
1,350 million yen

2,019 million yen
2,100 million yen

1,060 million yen
1,250 million yen

1,113 million yen
1,190 million yen

743 million yen
1,010 million yen

RC 6F

SRC 9FRC B1F/5F

S 3F

RC 6F

S 3F

Yokohama-shi, Kanagawa
10,216.95㎡

Sumida-ku, Tokyo
669.98㎡

Kawasaki-shi, Kanagawa
2,624.51㎡

Kawasaki-shi, Kanagawa
1,239.53㎡

Yokohama-shi, Kanagawa
2,172.70㎡

Mitaka-shi, Tokyo
947.92㎡

Total floor areas

10,918.37㎡

2,351.42㎡

5,029.52㎡

2,039.17㎡

3,169.13㎡

1,201.39㎡

Construction completion

March 24, 1992

October 31, 1997

August 23, 1988

June 10, 2021

February 17, 1994

June 8, 2023

Location
Lot area

Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue
Total operating expenses
from real estate leasing
Management fee
Utilities expenses
Taxes and dues
Repair expenses
Trust fee
Insurance premium
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value(million yen)

FP16

FP17

FP16

FP17

128,014

134,374

39,72638,80664,267

67,121

33,83833,966

2,083

7,322

122,366

127,048

36,51836,691

62,336

61,54331,791

33,242

2,083

7,322

5,647

7,326

3,208

2,115

1,930

5,577

2,047

724

-

-

42,08738,299

6,756

8,693

21,37319,993

7,766

5,303

3,241

7,131

11,542880
8,795
11,042
400
345
9,080
85,926
13,026

11,047
866
8,805
9,120
400
441
7,616
96,074
13,138

2,581
377
1,880
602
400
78
836
32,970
2,678

2,664
389
1,907
2,165
400
115
1,050
30,113
2,690

4,390
607
3,466
10,099
400
159
2,249
42,894
7,135

4,207
640
3,562
6,794
400
226
4,161
47,127
7,488

1,454
48
1,605
1,147
400
55
3,055
26,072
4,533

1,463
50
1,554
283
400
78
1,473
28,662
4,533

493
72
697
66
350
52
5,398
191
3,383

72,89982,93530,291

27,42235,75939,63921,5385,916
80,00996,07432,970173
29,93915,73027,164

13,92033,206

26,072

3,277

3,264

1,146

1,143

2,113

2,119

1,087

(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

FP16

FP17

FP16

FP17

FP16

（※）

FP17

（※）

FP16

FP17

29,2902,777

28,637
2,829

325
50
4
291
28
2,540
(1,157)
2,796

24,12926,51225,807(3,953)(3,191)

28,662

1,558
27,731

144
28,492(1,157)

611
(420)

1,082

1,145

1,142

778

775

60

Balance of Payments of Individual Properties (9)（Unit : Thousand yen）
Asset Type
Property nameAcquisition priceAppraisal value

RSC-23
Urban Park Kamata
MinamiⅠ

RSC-24
Urban Park Kamata
MinamiⅡ

641 million yen
881 million yen

1,375 million yen
1,770 million yen

Structure/Floors
Location
Lot area
Total floor areas
Construction completion
Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue
Total operating expenses
from real estate leasing
Management fee
Utilities expenses
Taxes and dues
Repair expenses
Trust fee
Insurance premium
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value(million yen)

RSC-25
Urban Park Umejima

1,032 million yen
1,220 million yen

RC 5F

RC 6F

RC 5F

Ota-ku, Tokyo
502.47㎡

Ota-ku, Tokyo
1,031.39㎡

Adachi-ku, Tokyo
770.37㎡

1,239.35㎡

2,323.83㎡

1,805.78㎡

September 29, 2022

September 25, 2023

October 23, 2023

FP16

FP16

FP16

FP17

FP17

FP17

7,464

22,634244

38,312832

27,334

7,197

22,001

244

38,312832

22,739

267

633

-

-

-

4,595

1,542

5,963

14,826

11,2891,940

12,611

389
37
8
297
116
12
681
5,922
1,107

1,179
202
1,164
541
349
53
2,472
16,671
3,322

558
60
8
116
23
14,059(14,581)
2,254

2,455
394
2,692
349
97
5,299
27,023
6,763

341
70
8
116
17
1,387
(1,108)
1,710

1,547
326
1,767
45
349
71
8,503
14,722
5,208

4,815

13,349(16,836)

20,260(2,818)

9,514

5,922

16,671(14,581)

27,023407(1,515)

14,722

677

674

1,441

1,434

1,086

1,088

(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

61

Balance of Payments of Individual Properties (10)Asset Type

LGC-01

LGC-02

LGC-03

LGC-04

LGC-05

Property nameIwatsuki Logistics

Yokohama Logistics

Funabashi Logistics

Baraki Logistics

Tokorozawa Logistics

Acquisition priceAppraisal value

6,942 million yen
7,650 million yen

3,560 million yen
4,170 million yen

7,875 million yen
8,770 million yen

1,300 million yen
1,550 million yen

Structure/Floors

S 5F

RC 8F

Building 1: S 8F
Building 2: RC 5F

4,700 million yen
5,220 million yen

Saitama-shi, Saitama
15,623.14㎡

Yokohama-shi, Kanagawa
10,565.95㎡
18,387.89㎡(including 256.15

Funabashi-shi, Chiba
19,858.00㎡
38,871.45㎡(two buildings

October 1, 1994

1: September 25, 1992
2: August 5, 1997

Location
Lot area
Total floor areas
Construction completion

29,729.72㎡㎡ break areas etc.)

October 29, 2014

Warehouse: S 4F
Factory: S 1F Office: S 3F

Ichikawa-shi, Chiba
6,240.96㎡

Tokorozawa-shi, Saitama
8,645.63㎡

Funabashi-shi, Chiba
3,964.00㎡

12,471.50㎡

5,994.75㎡

6,316.32㎡

August 14, 2015

April 30, 1999

W arehouse: Mar. 20, 1991 Plant:
May 15, 1972 Office: May 13, 1986

267,529

265,769

187,718

190,179

251,461

251,428

12,60011,477

16,06814,340Total operating expenses
from real estate leasing

34,85235,86067,01952,570Management fee

5,831

6,060

12,541

13,397

Utilities expenses

12,60011,477

16,297

14,577

Taxes and dues

13,547

13,47722,15321,077

Repair expenses

2,157

1,580

14,977

2,322

350

350

400

400

365

461

527

672

-

2,452

120

121

NOI

165,465

165,797

90,24894,557200,510

213,198

78,081

98,47337,17237,741

22,72729,600Depreciation

46,942

47,17920,47021,81530,58732,50815,806

15,918

6,091

6,091

4,641

4,673

Operating income (loss)
from real estate leasing

118,523

118,617

69,77772,741

169,922

180,69062,27482,55431,081

31,65018,08624,927

7,409

5,809

44,361

17,22547,82742,621

2,961

-

-

-

-

6,414

158,056

159,987

45,886

77,332

152,683

170,577

75,11998,47337,17237,741

22,72723,186

6,288
6,247
3,661
3,657
(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

7,732

7,742

4,537

4,521

1,338

1,332

839

841

Other expenses

Capital expenditures
NCF
Period-end book value(million yen)

（※）

FP17

Office: S 2F
Warehouse: S 2F

201,657

Insurance premium

200,318

FP16

RC and S 5F

FP17

Trust fee

FP17

821 million yen
911 million yen

FP16

Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue

FP16

combined)（Unit : Thousand yen）
LGC-07
Funabashi Nishiura
Logistics Ⅱ

（※）

FP16

FP17

FP16

FP17

FP16

FP17

（※）

（※）

（※）

（※）

（※ ）

（※）

62

Balance of Payments of Individual Properties (11)Asset Type

（Unit : Thousandyen）
LGC-09LGC-08Property name

Matsubushi Logistics

Funabashi Hi-Tech ParkⅠ

Acquisition priceAppraisal value
Structure/Floors

2,755 million yen
3,310 million yen
RC 3F
Kita-Katsushika-gun,
Saitama
11,580.65㎡
19,833.47㎡

1,997 million yen
2,200 million yen
S 2F

Location
Lot area
Total floor areas
Construction completion

March 31, 1997

Funabashi-shi, Chiba
13,420.44㎡
9,002.40㎡
May 19, 2003

FP16

FP17

FP16

FP17

（※）

（※）

（※）

（※）

Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue
Total operating expenses
from real estate leasing
Management fee
Utilities expenses
Taxes and dues
Repair expenses
Trust fee
Insurance premium
Other expenses
NOI

79,44579,06542,83370,513

Depreciation

20,02020,813

7,064

9,771

Operating income (loss)
from real estate leasing

59,42458,25135,76860,742

Capital expenditures

39,02627,478289,378

5,901

NCF
Period-end book value(million yen)

40,41851,586(246,545)

64,611

2,742

2,748

1,957

1,954

(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

63

Balance of Payments of Individual Properties (12)Sold
Asset Type

HTL-02

Property nameR&B Hotel Umeda East

Smile Hotel Namba

Acquisition priceAppraisal value
Structure/Floors
Location
Lot area
Total floor areas

2,069 million yen
2,430 million yen
RC 9FOsaka-shi, Osaka
730.26㎡
3,945.65㎡

1,750 million yen
1,490 million yen
S 9FOsaka-shi, Osaka
285.28㎡
1,711.42㎡

3,827 million yen
3,500 million yen
SRC B1F/9F
Edogawa-ku, Tokyo
1,418.00㎡
5,293.88㎡

3,248 million yen
3,090 million yen
SRC B1F/9F
Yokohama-shi, Kanagawa
782.66㎡
4,686.09㎡

1,970 million yen
2,040 million yen
RC 10F
Fukuoka-shi, Fukuoka
543.94㎡
2,281.49㎡

2,500 million yen
2,440 million yen
S and SRC B1F/10F
Chiyoda-ku, Tokyo
167.74㎡
1,081.97㎡

Construction completion

October 20, 2000

February 6, 2008

March 19, 1991

September 21, 1987

February 20, 2017

September 20, 2017

FP16

FP16

FP16

FP16

FP17

FP16

FP17

（※）

（※）

（※）

（※）

Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue

FP17

HTL-03REMBRANDT STYLETokyo Nishikasai

FP17

FP16

HTL-04

HTL-05The BREAKFAST HOTEL
Fukuoka Tenjin（Unit : Thousand yen）
HTL-06

HTL-01Best Western Yokohama

FP17

FP17

GLANSIT AKIHABARA

65,212

65,21237,36536,612

84,60093,99880,40080,40065,212

65,21237,36536,612

84,60093,99880,40080,400

-

-

-

-

-

-

-

-

Total operating expenses
from real estate leasing

9,114

8,339

6,090

3,940

11,953

12,00018,055

9,504Management fee

742

742

660

660

1,200

1,200

1,520

1,200

Utilities expenses

3

2

-

-

-

-

-

-

Taxes and dues

5,704

5,632

2,313

2,351

8,521

8,883

4,637

4,502

Repair expenses

2,131

1,381

1,776

339

1,633

1,209

11,329

3,169

350

350

850

471

400

400

400

400

Insurance premium

160

205

74

94

174

285

142

181

Other expenses

22

24

415

24

23

22

25

50

NOI

56,09856,87331,27532,672

72,64681,99762,34470,89555,386

41,81048,861

48,759Depreciation

11,005

11,061

11,3908,946

15,881

16,15813,40913,408

8,655

8,662

4,643

4,643

Operating income (loss)
from real estate leasing

45,09245,812

19,88423,72556,76565,83948,93557,487

46,73133,14844,21844,116

Trust fee

Capital expenditures

9,427

-

315

504

12,204-

13,382

552

295

-

-

-

NCF
Period-end book value(million yen)

46,67056,87330,95932,16760,44281,997

48,961

70,34355,09041,81048,861

48,759

2,081

2,070

1,594

1,585

3,868

3,852

3,191

3,178

1,896

1,888

2,471

2,466

(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

64

Balance of Payments of Individual Properties (13)（Unit : Thousand yen）
Asset Type
Property nameAcquisition priceAppraisal value
Structure/Floors
Location
Lot area
Total floor areas
Construction completion

HTL-07REMBRANDT STYLETokyo Nishikasai Grande

HTL-08
KOKO HOTEL
Osaka Namba

3,180 million yen
3,110 million yen
S 8F
Edogawa-ku, Tokyo

2,000 million yen
1,780 million yen
RC 9FOsaka-shi, Osaka

657.00㎡
2,755.19㎡
February 7, 2017
FP16

Total operating revenue
from real estate leasing

FP17

HTL-10
KOKO HOTEL
Ginza 1-Chome

HTL-11
KOKO HOTEL
Sapporo Ekimae

HTL-12
KOKO HOTEL
Fukuoka Tenjin

3,600 million yen
3,950 million yen
RC B2F/24F
Osaka-shi, Osaka

17,800 million yen
21,100 million yen
S and RC B1F/12F
Chuo-ku, Tokyo

6,700 million yen
7,720 million yen
S B1F/12F
Sapporo-shi, Hokkaido

335.31㎡

586.44㎡

848.78㎡

734.34㎡

5,000 million yen
5,500 million yen
RC 14F
Fukuoka-shi, Fukuoka
752.89㎡(Including the set-

2,061.38㎡
April 7, 2017

7,764.81㎡
January 31, 2012

7,299.11㎡
October 29, 2014

5,886.67㎡
October 20, 2015

FP16

FP16

FP17

FP16

FP17

FP16

FP17

FP16

HTL-09abeno nini (Hotel)

FP17

FP17

back area of 7.33㎡)

4,404.91㎡
Augst 20, 2007

70,00270,002

46,244

46,911

407,986

540,155

145,690

209,472

110,701

148,299

70,00270,002

46,244

46,911

407,986

540,155

145,690

208,153

110,701

148,299

-

-

-

-

-

-

-

1,318

-

-

Total operating expenses
from real estate leasing

7,537

6,849

6,418

5,275

10,131

46,475

8,609

17,474

1,536

14,337

Management fee

990

990

900

900

600

1,160

550

660

600

720

Utilities expenses

-

-

-

-

-

-

-

-

-

-

Taxes and dues

5,305
725
400
94
22
62,464
10,857

5,316
400
121
21
63,152
10,857

3,321
1,270
350
67
508
39,826
8,726

3,413
15
350
86
510
41,636
8,746

58,625
6,885

58,161
6,885

9
8,924
333
241
23
397,854
19,79330,805
13,639400443
26493,680
23,964

8
3,338
333
191
4,187
137,081
24,982

13,877
2,165
400
348
22
191,997
30,096

8
450
333
140
3
109,1656,449

12,942400
255
20
133,961
7,757

51,60752,295

31,10032,88951,74051,275

378,060

469,715

112,099

161,901

102,716

126,203

NCF

62,464

63,15239,826285
41,351

58,62558,161

280
397,574

17,746475,933

310
136,771

7,344
184,653

1,042
108,123

133,961

Period-end book value(million yen)

3,088

3,078

1,926

1,917

3,630

3,623

17,896

17,889

6,724

6,701

5,034

5,026

Lease businessrevenue
Other lease businessrevenue

Repair expenses
Trust fee
Insurance premium
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

（※）

（※）

65

Balance of Payments of Individual Properties (14)（Unit : Thousand yen）
Asset Type
Property nameAcquisition priceAppraisal value
Structure/Floors
Location
Lot area
Total floor areas
Construction completion
Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue
Total operating expenses
from real estate leasing
Management fee
Utilities expenses
Taxes and dues
Repair expenses
Trust fee
Insurance premium
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value(million yen)

HTL-13
KOKO HOTEL
Hiroshima Ekimae

HTL-14
KOKO HOTEL
Kagoshima Tenmonkan

HTL-15
KOKO HOTEL Sapporo
Odori

HTL-16
Best Western Plus
Fukuoka Tenjin-minami

HTL-17
KOKO HOTEL
Tsukiji Ginza

HTL-18
KOKO HOTEL Residence
Asakusa Kappabashi

4,100 million yen
4,430 million yen
S and RC B1F/14F

3,800 million yen
4,280 million yen
S 13F

4,200 million yen
4,370 million yen
RC 10F3,800 million yen
4,650 million yen
S 13F

17,000 million yen
18,800 million yen
S 11F

4,300 million yen
5,060 million yen
S 12F

Sapporo-shi, Hokkaido

Fukuoka-shi, Fukuoka

Chuo-ku, Tokyo

Taito-ku, Tokyo

1,788.92㎡(Including the setback area of 1.14㎡)
7,322.03㎡(including theattached building)829.96㎡(Including the setback area of 2.99㎡)
6,086.48㎡(including theattached building)April 3, 2020

December 15, 2020

November 27, 2020

FP16

FP17

FP16

FP17

Hiroshima-shi, Hiroshima Kagoshima-shi, Kagoshima
534.09㎡

882.69㎡

626.34㎡

4,622.48㎡(including the5,370.75㎡

3,854.01㎡

attached building)

December 17, 2019

April 19, 2019
FP16

June 9, 2020

FP16

FP17

FP17

FP16

106,591

139,82976,83270,256

106,591

139,82976,832

-

-

1,611

261.16㎡
1,608.74㎡

FP17

FP16

FP17

72,627

113,882

161,263

236,929

-

-

-

-

70,256

72,627

113,882

161,263

236,929

-

-

-

-

-

-

-

-

-

-

-

-

-

-

13,9291,343

11,016

1,081

10,367

39,10257,090

-

-

-

-

600
8
333
167
502
104,979
27,966720
11,510
480
400
303
515
125,899
33,563

600
8
233
333
143
25
75,48830,705

790
8,949
400
259
617
59,24037,249

600
8
333
119
19
71,546
17,807

720
8,781
227
400
217
20
103,515
21,408

600
8
333
227
37,933
122,160
43,373

720
9,697
400
412
45,861
179,838
52,052

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

77,01392,33644,783

21,99053,738

82,10678,786

127,786

-

-

-

-

310
104,669

125,899

310
75,17830,01629,224310
71,236

1,918
101,596310
121,850

179,838

-

-

-

-

-

-

-

-

4,106

4,073

3,801

3,793

4,215

4,196

3,887

3,835

-

-

-

-

66

Balance of Payments of Individual Properties (15)
（Unit : Thousand yen）
Asset Type

HTL-19KOKO HOTEL Residence
Asakusa Tawaramachi

HTL-20
KOKO HOTEL
Osaka Shinsaibashi

Acquisition priceAppraisal value
Structure/Floors

5,900 million yen
6,780 million yen
S 11F

7,500 million yen
7,990 million yen
SRC 10F/B1F

Location

Taito-ku, Tokyo

Osaka-shi, Osaka

Lot area

296.66㎡

Total floor areas

2,226.57㎡

8,881.68㎡

November 22, 2021

April 19, 2005

Property nameConstruction completion

1,636.96㎡(Including the setback area of 162.4㎡)

FP16

FP17

FP16

FP17

-

-

-

-

-

-

-

-

-

-

-

-

Total operating expenses
from real estate leasing

-

-

-

-

Management fee

-

-

-

-

Utilities expenses

-

-

-

-

Taxes and dues

-

-

-

-

Repair expenses

-

-

-

-

Trust fee

-

-

-

-

Insurance premium

-

-

-

-

Other expenses

-

-

-

-

NOI

-

-

-

-

Depreciation

-

-

-

-

Operating income (loss)
from real estate leasing

-

-

-

-

Capital expenditures

-

-

-

-

NCF
Period-end book value(million yen)

-

-

-

-

-

-

-

-

Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue

67Balance of Payments of Individual Properties(16)Total operating revenue from real estate leasing by asset types (FP17)（unit：thousand yen)

OfficeTotal operating revenue fromreal estate leasing
Lease businessrevenue
Other lease businessrevenue
Total operating expenses
from real estate leasing

RetailResidence

Logistics

FP16

FP17

FP16

FP17

FP16

FP17

2,397,454

2,427,977

1,241,310

1,235,224

1,290,776

1,379,914

926,298

2,205,321

2,247,057

1,082,343

1,109,651

1,237,451

1,314,507

192,132

180,919

158,967

125,573

53,325

Management fee

737,628

730,293487,792

462,298

Utilities expenses

183,350

186,154

143,121

Taxes and dues

174,637

169,938

Repair expenses

189,597

Trust fee

FP17

FP16

FP17

962,609

1,669,076

2,042,277

7,524,917

8,048,003

883,667

923,628

1,669,076

2,040,958

7,077,860

7,635,803

65,406

42,631

38,981-

1,318

447,056

412,199384,398

396,736

209,813

173,660

163,271

258,182

1,982,903

2,021,171

144,885

84,57486,293

31,25335,011

12,48913,784

454,790

466,129

138,237

152,030

17,271

18,52642,39339,2183

2372,542

379,716

195,707

87,881

88,18085,262

91,701

76,67775,66450,753

148,149

490,171599,404

96,76576,61747,58017,89094,30487,36349,032

13,052

31,947

22,626319,629

217,551

Insurance premium

8,263

8,263

3,600

4,678

7,622

8,249

3,000

3,000

6,183

6,271

28,66830,462Other expenses

4,835

6,354

2,615

3,289

3,589

4,803

1,898

2,461

2,374

3,801

15,31420,70980,17887,25864,756

51,342

91,773

99,797

5,557

5,253

59,51963,547

301,786

307,198

1,659,826

1,697,683

753,518

772,926

906,378

983,178

716,485

788,948

1,505,805

1,784,094

5,542,013

6,026,831

296,217

311,701

101,441

105,539

151,785

163,199

151,625

158,772

262,532

295,462

963,602

1,034,674

Capital expenditures

1,363,608

1,385,982

652,076

667,387754,592

819,978

564,859

630,176

1,243,272

1,488,631

4,578,410

4,992,156

Lease businessrevenue

414,498

449,674

150,429

112,492

72,79948,338430,965

105,450

38,49758,367

1,107,190

774,323

1,245,327

1,248,009

603,088

660,433

833,579

934,839

285,519

683,498

1,467,307

1,725,726

4,434,822

5,252,508

75,76075,901

27,732

27,73939,64239,53429,09829,044

69,41569,178

241,648

241,398

Depreciation
Operating income (loss)
from real estate leasing

NCF
Period-end book value(million yen)

FP17

Total

FP16

NOI

FP16

Hotel

68

Note
P.11

(note 1)The "Tokyo area ratio" is the ratio of properties located in the Tokyo area out of the total acquisition price of real estate, etc. owned, for the "Tokyo area ratio of portfolio," andthe "Tokyo area ratio excluding suburban commercial " is the ratio of the total acquisition price of real estate, etc. owned, excluding three suburban commercial facilities that are
assumed to be sold, for the "Tokyo area ratio of portfolio," which is the total acquisition price of all properties in the Tokyo area.

P.11(note 2)

“Average building age” is the weighted average calculated by dividing the building age of each property.
* Building age” refers to, except for “Urban Park Daikanyama”, the period commencing on the date of completion of construction (based on the date of completion of constructionof the principal building as registered in the registry of real estates) to January 31, 2024. As for “Urban Park Daikanyama”, which consists of two buildings, “building age” refers to
the period commencing on the date of completion of the older building and ends on respective date.

P.11(note 3)

“Average appraisal NOI Yield” is the average ratio of appraisal NOI using the direct capitalization method to the acquisition price of the property in the real estate appraisal report,
rounded to the second decimal place. Preferred securities and mezzanine loan debts are excluded from calculation of “Average appraisal NOI yields”.

P.11(note 4)

“Average post-depreciation appraisal NOI yield” is the ratio of total appraisal NOI (Net Operating Income) values of the assets held by SAR at the end of each period using thedirect capitalization method, given in the respective real estate appraisal reports of each property, minus the actual annualized depreciation expenses of such assets for eachperiod, to the total acquisition price of all such assets, all rounded to the first decimal place. Preferred securities and mezzanine loan debts are excluded from calculation of“Average appraisal NOI yields”.

P.38(note 1)“GRESB Real Estate Assessment” benchmarks ESG performance based on multiple factors and gives participants a five-grade relative evaluation. GRESB is the name of theorganization which provides annual benchmarking assessments to measure ESG (Environmental, Social and Governance) integration of real estate companies and funds. It was
founded in 2009 by a group of major European pension funds who played leading roles in launching the Principles for Responsible Investment (PRI).

P.39(note 1)

“GHG” refers to greenhouse gas. Scope 2 emissions (indirect emissions associated with the purchase of electricity, steam, or heat) indicated in this document are calculated
based on market-based factors.

P.39(note 2)

“GHG emission intensity” refers to per-unit GHG emissions amount resulting from a specific activity. In this document, per-unit GHG emissions intensity is calculated using total
floor area (m2) accounting for operating months as a unit.

P.39(note 3)

“Energy Consumptions intensity” refers to per-unit Energy Consumptions emissions amount resulting from a specific activity. In this document, Energy Consumptions intensity is
calculated using total floor area (m2) accounting for operating months as a unit.

P.40(note 1)

The ratio of assets obtaining environmental certification is calculated by dividing the total floor area of assets which are environmentally certified as of September 6, 2024 by the
total floor area of assets.

P.40(note 2)

“BELS Evaluation Certification” is a third-party evaluation framework to assess energy saving performance of buildings based on criteria stipulated by the Ministry of Land,
Infrastructure, Transport and Tourism.

P.40(note 3)

CASBEE Real Estate Certification integrates multiple assessment methods including CASBEE’s real estate assessment system, which SAR was assessed. CASBEE’s realestate assessment system was developed with the aim of making use of the results of the environmental assessment of buildings in real estate assessment. It scores buildings
under each of the evaluation items in five categories, comprising "1. Energy & Greenhouse Gases", "2. Water", "3. Use of Resources & Safety", "4. Biodiversity & Sustainable
Site", and "5. Indoor Environment". Based on the scores, the assessment results are granted under one of four ranks: Rank S, Rank A, Rank B+, and Rank B. The same shallapply hereinafter.

P.40(note 4)

“Urban Park Miyamaedaira” consists of two buildings (“Urban Park Miyamaedaira EAST” and “Urban Park Miyamaedaira WEST”) and each of them received certification.

P.40(note 5)“Green lease contracts” indicates the lease contracts stating that the lessor and the tenant jointly determine rules including reduction of environmental burdens such as energy
saving of properties and improvement of working environment by concluding contracts, memorandums, etc., and implement such rules.

69

Disclaimer

This document has been prepared to provide information and is not for soliciting and inviting investment in or recommendingtransaction of certain products. SAR does not guarantee the accuracy or completeness of the information provided in thisdocument although effort has been made to provide correct information based on information available to SAR. Moreover,please note that the contents of this document are subject to change or removal without prior notice. Duplication andreproduction, etc. of the contents contained in this document without prior consent is prohibited. This document includes
graphs, data, etc. publicly disclosed by third parties. Furthermore, the document also includes analysis, judgement and other
opinions by Star Asia Investment Management, Co,. Ltd. concerning such information. This document discusses future
expectations, identifies strategies, contains projections of our results operations or financial condition, or states other forwardlooking information based on certain assumptions, estimates and projections, Known and unknown risks, uncertainties andother factors could cause our actual results, performance or achievements to differ materially from those contained or impliedin any forward-looking statement. We cannot give any assurances that the expectations expressed in these forward-looking
statements will turn out to be correct.
Copying, reprinting or any other use of the contents of this document without prior approval is strictly prohibited.

■ Star Asia Group YouTube Cannel■ Contact regarding this material

https://www.youtube.com/@user-wf8jo1ct6p

Akiko Kanno,
Director and CFO (General Manager of Finance Management Department)
Star Asia Investment Management Co., Ltd.
Atago Green Hills Mori Tower 18F, 2-5-1, Atago, Minato-ku, Tokyo 105-6218
Tel: +81-3-5425-1340

70