May 1, 2018
Real Estate Investment Trust Securities Issuer
Sekisui House Reit, Inc.
Representative:
Junichi Inoue, Executive Director(Securities Code: 3309)
Asset Management Company
Sekisui House Asset Management, Ltd.
Representative:
Junichi Inoue,
President & Representative Director
Inquiries:
Yoshiya Sasaki, Chief Manager
Investor Relations Department
TEL: +81-3-6447-4870 (main)

Notice Concerning Valuation of Succeeded Assets and Amount of Negative Goodwill
From Merger with Sekisui House Residential Investment Corporation
Sekisui House Reit, Inc. (“SHR”) hereby announces that the merger with Sekisui House Residential Investment
Corporation (“SHI”)(the “Investment Corporation Merger”) became effective as of today, as described in the press
release “Notice Concerning Completion of Merger with Sekisui House Residential Investment Corporation”
released today, and since, in conjunction with that, the appraisal value of the real estate trust beneficiary interests(the “Succeeded Assets”) from SHI, the dissolved corporation in the absorption-type merger as of the effective dateof the Investment Corporation Merger, that is the basis for the valuation of the Succeeded Assets has largely been
determined, as described below.
In addition, the estimated amount of negative goodwill generated by the Investment Corporation Merger has
been calculated on the basis of the investment unit value as of the effective date of the Investment CorporationMerger (investment unit price (closing price) as of April 27, 2018) for the total value of the investment units ofSHR allocated and delivered to the investors of SHI as the price for the Investment Corporation Merger by SHR as
the acquiring corporation in the Investment Corporation Merger, and that is also announced.
1. Evaluated Amount of Succeeded Assets from SHIThe Succeeded Assets from SHI in conjunction with the Investment Corporation Merger are 101 properties,excluding 12 properties for which sale has been completed as of today (“Sold Assets”), and the total valuation ofthe Succeeded Assets from SHI is 214.8 billion yen. As a result, the assets under management of SHR are 113
properties, including 6 properties for which acquisition is completed as of today (“Acquired Assets”) and 6
properties of assets under management already held prior to the effective date of the Investment CorporationMerger (“SHR Continuous Held Assets”), and the asset size (total amount of acquisition price of assets undermanagement) has reached 440.8 billion yen.
For the acquisition price and appraisal value of individual properties of the Succeeded Assets from SHI, please
see the “[Reference Materials] List of Succeeded Assets from SHI (excluding Sold Assets)” below.
＜Asset Size of SHR＞
Number ofproperties

Total acquisition
price(Note2)

Total appraisal value(Note 3)

Succeeded Assets from SHI(excluding Sold Assets (Note 1))

101 properties

214,824 million yen

214,824 million yen

Acquired Assets (Note 1)

6 properties

25,300 million yen27,210 million yen

SHR Continuous Held Assets

6 properties

200,750 million yen

233,080 million yen

Total

113 properties

440,874 million yen

475,114 million yen

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

1Note 1:For the details of the Sold Assets and the Acquired Assets please see the press release “Notice Concerning Acquisition of Trust
Beneficiary Interests in Domestic Real Estate and Leases (Prime Maison Shirokanedai Tower and Five Other Properties) and Sale andCancellation of Leases (Esty Maison Machida and Eleven Other Properties” released by SHR on January 24, 2018, and the press
release “Notice Concerning Completion of Acquisition (Prime Maison Shirokanedai Tower and Five Other Properties) and Completionof Sale (Esty Maison Machida and Eleven Other Properties) of Trust Beneficiary Interests in Domestic Real Estate” releasd by SHR
today; the same hereafter.

Note 2:"Total acquisition price" does not include acquisition expenses, fixed assets tax, city planning tax, consumption tax, and local
consumption tax; the same hereafter. Also, in regard to the Succeeded Assets from SHI (excluding the Sold Assets), since the appraisalvalue set out in the appraisal reports which SHR has obtained will be the actual amount received by SHR by the purchase method ofaccounting treatment with SHI as the acquired corporation and SHR as the acquiring corporation, the value listed as the “Totalacquisition price” is the same as the “Total appraisal value” listed in the above.

Note 3:In the "Total appraisal value", the total amount of respective valuation based on the appraisal value by real estate appraisers as of thevaluation date set out below is listed.
- Succeeded Assets from SHI (excluding Sold Assets): April 30, 2018
- Acquired Assets: April 1, 2018
- SHR Continuous Held Assets: October 31, 2017

Note 4: The numerical value set out is the numerical value before audit by an auditor.

2. Amount of Negative Goodwill to be Recorded upon the Investment Corporation Merger
SHR estimates the amount(Note 1) of negative goodwill to be recorded upon the Investment Corporation Merger as2,261 million yen, and premised on application of the Accounting Standards for Business Combinations (AccountingStandards Board of Japan Statement No. 21, as amended September 13, 2013; “Business Combinations AccountingStandards”), the amount of negative goodwill will be recorded as extraordinary income for the fiscal period ending
October 31, 2018 (May 1, 2018 to October 31, 2018).
The amount of negative goodwill is estimated on the assumption of 243,393 million yen as the total of assets
received from SHI, the acquired corporation under the Business Conbinations Accounting Standards , 112,533
million yen as the total assumed obligations from SHI, and 128,598 million yen as the acquisition cost of theInvestment Corporation Merger (total value of investment units of SHR allocated to theunitholders of SHI as theprice for the acquisition calculated based on 70,500 yen as the investment unit price (closing price) of SHR as ofApril 27, 2018). The amount of negative goodwill is not fixed at this point in time, so there is a possibility ofvariation in the above amount.
Note 1:"Negative Goodwill" is the difference in the case where the acquisition price of the acquiring corporation for accounting purpose(SHR) is less than the current net asset value of the acquired corporation for accounting purpose (SHI) at the time the merger iseffective.

Note 2:The numerical value set out is the numerical value before audit by an auditor.

3. Future Outlook
In regard to the forecast of operating results of SHR taking into consideration the valuation of the above
Succeeded Assets from SHI and the expected amount of negative goodwill, please see the press release “NoticeConcerning Revisions of Forecast of Operating Results and Distributions for the Fiscal Periods Ending October 31,2018 and April 30, 2019" released today by SHR.
* Sekisui House Reit, Inc. website: http://sekisuihouse-reit.co.jp/en/＜Attached Materials＞[Reference Materials] List of Succeeded Assets from SHI (excluding Sold Assets)

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

2

[Reference Materials] List of Succeeded Assets from SHI (excluding Sold Assets)（Valuation Date of Appraisal Value: April 30, 2018)
UseResidence

Property nameLocation

Acquisition price(million yen)Appraisal value(million yen)

(Note 1)

(Note 2)Esty Maison Ginza

Chuo-ku, Tokyo

6,540

6,540

Esty Maison Azabunagasaka

Minato-ku,
Tokyo

1,790

1,790

Esty Maison Ebisu II

Shibuya-ku,
Tokyo

2,040

2,040

Esty Maison Ebisu

Shibuya-ku,
Tokyo

873

873

Esty Maison Kanda

Chiyoda-ku,
Tokyo

1,610

1,610

Esty Maison Kitashinjuku

Shinjuku-ku,
Tokyo

1,590

1,590

Esty Maison
Asakusakomagata

Taito-ku, Tokyo

2,190

2,190

Esty Maison Kawasaki

Kawasaki-shi,
Kanagawa

2,400

2,400

Esty Maison Yokohama

Yokohama-shi,
Kanagawa

2,110

2,110Esty Maison Kameido

Koto-ku, Tokyo

1,580

1,580

Esty Maison Meguro

Meguro-ku,
Tokyo

1,060

1,060

Esty Maison Sugamo

Toshima-ku,
Tokyo

1,630

1,630

Esty Maison Kyobashi

Osaka-shi, Osaka

2,970

2,970

Esty Maison Hakuraku

Yokohama-shi,
Kanagawa

931

931

Esty Maison Minamihorie

Osaka-shi, Osaka

1,060

1,060

Esty Maison Gotanda

Shinagawa-ku,
Tokyo

3,110

3,110

Esty Maison Oisendaizaka

Shinagawa-ku,
Tokyo

2,720

2,720

Esty Maison
Shinagawa SeasideShinagawa-ku,
Tokyo

2,050

2,050

Esty Maison Minamiazabu

Minato-ku,
Tokyo

1,250

1,250

Esty Maison Tsukamoto

Osaka-shi, Osaka

1,080

1,080

Appraisal agency
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Japan Real Estate
Institute
JLL Morii
Valuation &Advisory K.K.
Richi Appraisal
Institute
Daiwa Real
Estate Appraisal
Co., Ltd.
JLL Morii
Valuation &Advisory K.K.
Daiwa Real
Estate Appraisal
Co., Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
JLL Morii
Valuation &Advisory K.K.
JLL Morii
Valuation &Advisory K.K.
Japan Real Estate
Institute

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

3

Use

Property nameAcquisition price(million yen)Appraisal value(million yen)

(Note 1)

(Note 2)Esty Maison Kawasaki IIKawasaki-shi,
Kanagawa

1,910

1,910

Esty Maison Azabujuban

Minato-ku,
Tokyo

2,690

2,690

Esty Maison Itabashihoncho

Itabashi-ku,
Tokyo

937

937

Esty Maison Oizumigakuen

Nerima-ku,
Tokyo

790

790

Esty Maison
Higashishinagawa

Shinagawa-ku,
Tokyo

2,390

2,390

Esty Maison
Itabashikuyakushomae

Itabashi-ku,
Tokyo

2,540

2,540

Esty Maison Musashikoyama

Shinagawa-ku,
Tokyo

1,050

1,050

Esty Maison Sendagi

Bunkyo-ku,
Tokyo

698

698

Esty Maison
Yotsuyasakamachi

Shinjuku-ku,
Tokyo

2,090

2,0902,400

2,400821

821

Esty Maison Hakatahigashi
Residence

Location

Esty Maison Kamigofuku

Fukuoka-shi,
Fukuoka
Fukuoka-shi,
Fukuoka

Esty Maison Sangenjaya

Setagaya-ku,
Tokyo822

822

Prime Maison
Musashinonomori

Kodaira-shi,
Tokyo

1,850

1,850

Prime Maison Higashisakura

Nagoya-shi, Aichi

1,500

1,500

Prime Maison Kayabakoen

Nagoya-shi, Aichi

801

801

Esty Maison Sangenjaya II

Setagaya-ku,
Tokyo785

785

Esty Maison Itabashi C6

Itabashi-ku,
Tokyo

2,560

2,560

MAST Hakata

Fukuoka-shi,
Fukuoka

2,360

2,360

Esty Maison Kinshicho

Sumida-ku,
Tokyo

1,260

1,260

Esty Maison Musashikoganei

Koganei-shi,
Tokyo

1,790

1,790

Prime Maison Gokiso

Nagoya-shi, Aichi

1,950

1,950

Appraisal agency
JLL Morii
Valuation &Advisory K.K.
JLL Morii
Valuation &Advisory K.K.
JLL Morii
Valuation &Advisory K.K.
JLL Morii
Valuation &Advisory K.K.
Daiwa Real
Estate Appraisal
Co., Ltd.
JLL Morii
Valuation &Advisory K.K.
JLL Morii
Valuation &Advisory K.K.
JLL Morii
Valuation &Advisory K.K.
JLL Morii
Valuation &Advisory K.K.
Richi Appraisal
InstituteRichi AppraisalInstituteTanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Japan Real Estate
Institute
Chuo Real EstateAppraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,
Ltd.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

4

Use

Residence

Property nameLocation

Acquisition price(million yen)Appraisal value(million yen)

(Note 1)

(Note 2)

Prime Maison Yuhigaoka

Osaka-shi, Osaka

909

909

Prime Maison Kitatanabe

Osaka-shi, Osaka

601

601

Prime Maison Momochihama

Fukuoka-shi,
Fukuoka

1,940

1,940

Esty Maison Akihabara

Taito-ku, Tokyo

1,930

1,930

Esty Maison Sasazuka

Shibuya-ku,
Tokyo

3,340

3,340

Prime Maison Ginza East

Chuo-ku, Tokyo

6,250

6,250

Prime Maison Takami

Nagoya-shi, Aichi

1,050

1,050

Prime Maison Yadaminami

Nagoya-shi, Aichi

812812

Prime Maison Teriha

Fukuoka-shi,
Fukuoka

1,260

1,260

Esty Maison Higashishirakabe

Nagoya-shi, Aichi

1,580

1,580

Esty Maison Sengoku

Bunkyo-ku,
Tokyo

1,360

1,360

Esty Maison Daizawa

Setagaya-ku,
Tokyo

2,270

2,270

Esty Maison Togoshi

Shinagawa-ku,
Tokyo

1,770

1,770

Esty Maison Nishitemma

Osaka-shi, Osaka

1,680

1,680

Esty Maison Shirokanedai

Shinagawa-ku,
Tokyo

2,400

2,400Esty Maison Higashishinjuku

Shinjuku-ku,
Tokyo

1,680

1,680

Esty Maison Motoazabu

Minato-ku,
Tokyo

1,540

1,540

Esty Maison Toritsudaigaku

Meguro-ku,
Tokyo861

861

Esty Maison
Musashikoyama II

Shinagawa-ku,
Tokyo

1,030

1,030

Esty Maison Nakano

Nakano-ku,
Tokyo

1,870

1,870

1,020

1,020

Esty Maison Shinnakano

Nakano-ku,
TokyoAppraisal agency
Japan Real Estate
InstituteJapan Real Estate
InstituteTanizawa Sogo
Appraisal Co.,Ltd.
Chuo Real EstateAppraisal Co.,Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Chuo Real EstateAppraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,
Ltd.
Japan Real EstateInstituteTanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

5UseProperty nameEsty Maison Nakanofujimicho

ResidenceLocation
Nakano-ku,
TokyoAcquisition price(million yen)Appraisal value(million yen)

(Note 1)

(Note 2)984

984

Esty Maison Tetsugakudo

Nakano-ku,
Tokyo

1,160

1,160

Esty Maison Koenji

Suginami-ku,
Tokyo

1,160

1,160

Esty Maison Oshiage

Sumida-ku,
Tokyo

2,490

2,490

Esty Maison Akabane

Kita-ku, Tokyo

3,290

3,290

Esty Maison Oji

Kita-ku, Tokyo

1,650

1,650

Prime Maison Waseda

Shinjuku-ku,
Tokyo

1,580

1,580

Prime Maison Hatchobori

Chuo-ku, Tokyo

1,460

1,460

Prime Maison Jimbocho

Chiyoda-ku,Tokyo1,960

1,960

Prime Maison
Gotenyama East

Shinagawa-ku,
Tokyo

2,910

2,910

MAST LIFE Akihabara

Chiyoda-ku,
Tokyo555

555

Esty Maison Aoi

Nagoya-shi, Aichi

2,460

2,460

Esty Maison Yakuin

Fukuoka-shi,
Fukuoka

2,430

2,430

Esty Maison Kinshicho II

Sumida-ku,
Tokyo

8,250

8,250

Esty Maison Ojima

Koto-ku, Tokyo

8,630

8,630

Prime Maison Fujimidai

Nagoya-shi, Aichi

2,070

2,070

Esty Maison Tsurumai

Nagoya-shi, Aichi

4,490

4,490

Prime Maison Morishita

Koto-ku, Tokyo

1,930

1,930

Prime Maison Shinagawa

Shinagawa-ku,
Tokyo

1,960

1,960

3,160

3,160

1,930

1,930

1,250

1,250

Prime Maison Odorikoen
Prime Maison Minami 2-joPrime Maison
Kamokamogawa

Sapporo-shi,
Hokkaido
Sapporo-shi,
Hokkaido
Sapporo-shi,
Hokkaido

Appraisal agency
Tanizawa Sogo
Appraisal Co.,Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute
Chuo Real EstateAppraisal Co.,Ltd.
Chuo Real EstateAppraisal Co.,Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Tanizawa Sogo
Appraisal Co.,
Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute
Daiwa Real
Estate Appraisal
Co., Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Tanizawa Sogo
Appraisal Co.,Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

6UseProperty nameResidence

Location

Appraisal value(million yen)

(Note 1)

(Note 2)

Prime Maison Central Park

Fukuoka-shi,
Fukuoka

2,309

2,309

MAST LIFE Yahiro

Sumida-ku,
Tokyo

1,910

1,910

Prime Maison Ebisu

Shibuya-ku,
Tokyo

4,360

4,360

Granmast Kanazawa
Nishiizumi

Kanazawa-shi,Ishikawa

1,080

1,080

Granmast Unomori

Yokkaichi-shi,
Mie

830

830

Esty Maison
Kohoku Tsunashima

Yokohama-shi,
Kanagawa

2,750

2,750

MAST LIFE Hino

Hino-shi, Tokyo

1,390

1,390

Prime Maison Yokohama
Nihon-Odori

Yokohama-shi,
Kanagawa

4,8704,870

Kobe Women’s Student
Housing

Kobe-shi, Hyogo

5,880

5,880

Prime Maison Shibuya

Shibuya-ku,
Tokyo

2,430

2,430

Prime Maison Hatsudai

Shibuya-ku,
Tokyo

3,010

3,010

Esty Maison Uemachidai

Osaka-shi, Osaka

1,040

1,040

Esty Maison Kobe-Sannomiya

Kobe-shi, Hyogo

971

971

Prime Maison
Shirokane-Takanawa

Minato-ku,
Tokyo

4,900

4,900

Prime Maison
Ichigayayamabushicho

Shinjuku-ku,
Tokyo

4,220

4,220

Esty Maison Morishita

Sumida-ku,
Tokyo

655

655

212,095

212,095

2,729

2,729

2,729

2,729

214,824

214,824

Residence – subtotal
Retailproperty, etc.

Acquisition price(million yen)Hamamatsu Plaza

Hamamatsu-shi,Shizuoka

Retal property, etc. – subtotal
Succeeded Assets from SHI (excluding Sold Assets) total

Appraisal agency
Richi Appraisal
Institute
Daiwa Real
Estate Appraisal
Co., Ltd.
Japan Real Estate
Institute
Daiwa Real
Estate Appraisal
Co., Ltd.
Daiwa Real
Estate Appraisal
Co., Ltd.
Japan Real Estate
InstituteRichi Appraisal
Institute
JLL Morii
Valuation &Advisory K.K.
Japan Real Estate
Institute
JLL Morii
Valuation &Advisory K.K.
JLL Morii
Valuation &Advisory K.K.
Chuo Real EstateAppraisal Co.,Ltd.
Chuo Real EstateAppraisal Co.,Ltd.
JLL Morii
Valuation &Advisory K.K.
Richi Appraisal
Institute
Chuo Real EstateAppraisal Co.,
Ltd.

Richi Appraisal
Institute

Note 1:For the “Acquisition price” of the Succeeded Assets from SHI (excluding Sold Assets), the appraisal value set out in the appraisal
reports which SHR has obtained will be the actual amount received by SHR by the purchase method of accounting treatment with SHI
as the acquired corporation and SHR as the acquiring corporation, the value listed as the “Acquisition price” is the same as the“Appraisal value” listed in the above. Any amount less than a million yen has been rounded down.

Note 2:In the "Appraisal value", the valuation amount based on the appraisal value by real estate appraisers as of the valuation date of April
30, 2018, is listed. Any amount less than a million yen has been rounded down.

Disclaimer: This translation is for informational purposes only. If there is any discrepancy between the Japanese version and the English translation, the Japanese version shall prevail.

7