June 15, 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 Determination of Operationg Results for the Fiscal Period Ended April 30, 2018 (FinalFiscal Period) and Merger Consideration, Etc., of Sekisui House Residensial Investment Corporation
Sekisui House Reit, Inc. (“SHR“) announced today the determination of the financial results for the fiscal period
ended April 30, 2018 (final fiscal period) of Sekisui House Residensial Investment Corporation (“SHI”) , whichmerged with SHR effective on May 1, 2018 (the “Investment Corporation Merger”), and the cash distribution on
merger as follows.
I.

Operationg results and merger consideration in the form of cash distributions for the final fiscal period (fiscalperiod ended April 30, 2018 (October 1, 2017 to April 30, 2018))

OperatingRevenue(Millionyen)
Fiscal period
ended April 30,2018(seven months)

8,174

Operating
Income(Millionyen)

3,443

Ordinary
Income(Millionyen)

Net
Income(Millionyen)

2,843

2,841

Net
IncomePer unit(yen)2,570

MergerConsiderationin the Form of
CashDistributions
per Unit(yen)(Note 3)

Total of Merger
Considerationin the Form of
CashDistributions(Million yen)

2,764

3,055

(Note 4)(Note 1)
Note 1: The period in question for the earnings for the fiscal period ending April 30, 2018 and the merger consideration in the form of cash
distributions is the seven-month period from October 1, 2017 until April 30, 2018.
Note 2: Total number of outstanding units at the end of the fiscal period: 1,105,510 units
Note 3: Instead of cash distribution for SHI’s final fiscal period, SHR will make a cash distribution on merger to the unitholders listed orrecorded on the final unitholders register of SHI as of the day immediately prior to the effective date of the Investment Corporation
Merger (April 30, 2018), in an amount equivalent to the cash distributions for the final fiscal period based on SHI’s distributableprofit (the payment on merger will be the amount of distributable profit of SHI as of the day immediately prior to the date of themerger (April 30, 2018) divided by the number of investment units issued and outstanding of SHI, as of the day immediately prior
to the date of the merger (amounts less than one yen are rounded down)).
Note 4: Gross cash distribution on merger for the fiscal period ended April 30, 2018 (3,055 million yen) includes reversal of reserve for
reduction entry (214 million yen), and differs from the amount of Net income.
Note 5: Amounts less than one unit have been rounded down. The same hereafter.

II． Schedule date of Merger Consideration Payment in the Form of Cash Distributions
July 20, 2018
【Exibit】
Reference Information of the grounds of SHI’s Merger Consideration in the Form of Cash Distributions* Sekisui House Reit, Inc. website: http://sekisuihouse-reit.co.jp/en/

1
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.

(Reference Information of the grounds of SHI’s Merger Consideration in the Form of Cash Distributions)(１)Balance Sheet(Thousand yen)
25th Fiscal Period(As of April 30, 2018)
AssetsCurrent assets
Cash and deposits

5,882,205

Cash and deposits in trust

5,511,714

Operating accounts receivable

120,088

Prepaid expenses

197,009

Deferred tax assets

81

Other

80,583

Allowance for doubtful accounts(1,882)

Total current assets

11,789,799

Non-current assets
Property, plant and equipment
Buildings in trust

106,936,616

Accumulated depreciation(19,540,950)

Buildings in trust, net

87,395,666

Structures in trust

987,605

Accumulated depreciation(300,730)

Structures in trust, net

686,875

Machinery and equipment in trust

2,031,290

Accumulated depreciation(763,676)

Machinery and equipment in trust, net

1,267,613

Tools, furniture and fixtures in trust

402,779

Accumulated depreciation(147,961)

Tools, furniture and fixtures in trust, net

254,817

Land in trust

107,828,487

Construction in progress in trust

128,908

Total property, plant and equipment

197,562,369

Intangible assets
Leasehold rights in trust

139,591

Other

83

Total intangible assets

139,675

Investments and other assets
Lease and guarantee deposits

242,662

Long-term prepaid expenses

386,883

Other166,741

Total investments and other assets

796,287

Total non-current assets

198,498,332

Deferred assets
Investment corporation bond issuance costs

36,743

Investment unit issuance costs

23,472

Total deferred assets

60,215

Total assets

210,348,347

2
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.

(Thousand yen)
25th Fiscal Period(As of April 30, 2018)
Liabilities
Current liabilities
Operating accounts payable
Current portion of investment corporation bonds

277,859
2,500,000

Current portion of long-term loans payable
Accounts payable – other

14,882,000
611,873

Accrued expenses
Income taxes payable

102,291
2,124

Accrued consumption taxes
Advances received

9,905
238,795

Other

5,704

Total current liabilities

18,630,554

Non-current liabilities
Investment corporation bonds
Long-term loans payable

8,000,000
80,150,500

Tenant leasehold and security deposits in trust

1,877,018

Total non-current liabilities

90,027,518

Total liabilities

108,658,073

Net assetsUnitholders’ equity
Unitholders’ capital

98,633,978Surplus
Voluntary retained earnings
Reserve for reduction entry

214,718

Total voluntary retained earnings

214,718

Unappropriated retained earnings

2,841,576

Total surplus

3,056,295

Total unitholders’ equity

101,690,274

Total net assets

101,690,274

Total liabilities and net assets

210,348,347

3
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) Statement of Income and Retained Earnings(Thousand yen)25th Fiscal Period(October 1, 2017 –Apri 30, 2018)
Operating revenue
Rent revenue - real estate

8,174,332

Total operating revenue

8,174,332

Operating expenses
Expenses related to rent business

3,885,818

Asset management fee
Asset custody fee

426,954
19,273Administrative service fees
Directors’ compensations

43,1104,200

Merger Expenses
Provision of allowance for doubtful accounts

129,226
212

Other operating expenses

221,863

Total operating expenses

4,730,658

Operating income

3,443,674

Non-operating income
Interest income
Reversal of distributions payable

49747

Other2

Total non-operating income799

Non-operating expenses
Interest expenses

436,750

Interest expenses on investment corporation
bonds

61,123

Amortization of investment corporation bondissuance costs

7,945

Borrowing related expenses
Amortization of investment unit issuance costs

84,91910,040

Other

138

Total non-operating expenses

600,917

Ordinary income

2,843,555

Income before income taxes

2,843,555

Income taxes - current
Income taxes - deferred

2,132
-4

Total income taxes

2,127

Net income

2,841,427

Retained earnings brought forward

148

Unappropriated retained earnings

2,841,576

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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) Statement of Changes in Net Assets
25th fiscal period (from October 1, 2017 to April 30, 2018)(Thousand yen)
Unitholders’ equity
Surplus

Unitholders’capitalBalance as ofOctober 1, 2017
Changes of items
during the fiscal
periodDistribution fromsurplus

98,633,978

Voluntary retained
earnings

Unappropriatedretainedearnings

Reserve forreduction
entry

Total
voluntary
retainedearnings

214,718

214,718Net Income
Total changes of
items during thefiscal period
Balance as ofApril 30, 2018

2,493,073

Total
surplus

Total
Unitholders’capital

Total Net
Assets2,707,792 101,341,771 101,341,771(2,492,925)(2,492,925)(2,492,925)(2,492,925)

2,841,427

2,841,427

2,841,427

2,841,427

348,502348,502348,502---348,502

98,633,978214,718

214,718

2,841,576

3,056,295 101,690,274 101,690,274

5Disclaimer: 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) Statement of Cash Distributions
25th Fiscal PeriodItem(October 1, 2017 –April 30, 2018)

I. Unappropriated retained earnings

2,841,576,607 yen

II. Voluntary retained earnings
Reversal of reserve for reduction entry

214,718,633 yen

III. Cash distributions

3,055,629,640 yen(Cash distributions per unit)(2,764 yen)

IV. Retained earnings carried forward

665,600 yen

Method for calculating cash distributions

Based on the merger agreement concluded between SHIand SHR on January 24, 2018, a cash distribution onmerger shall be paid to the unitholders listed or recordedon the final unitholders register of SHI on April 30, 2018,
the day immediately prior to the effective date of themerger (May 1, 2018). The per-unit amount of this
distribution is specified as that reached by dividing SHI's
entire distributable profit as of April 30, 2018, the day
immediately prior to the effective date of the merger (May1, 2018) by the number of SHI's investment units issued
and outstanding as of the same day (with any amount lessthan one yen truncated). In line with this policy, themerger distribution per unit calculated by dividing
3,056,295,240 yen , the sum of 2,841,576,607 yen of theunappropriated retained earnings for the current fiscal
year and 214,718,633 yen of the reversal of reserve for
reduction entry, by 1,105,510 units of the total number ofissued and outstanding investment units was 2,764 yen.
3,055,629,640 yen shall be paid as the merger
distribution, which is the value obtained by multiplying
the total number of issued investment units by 1,105,510
units.

Note 1: “Cash Distribution” is used in referring to a merger consideration in the form of cash distributions.

6Disclaimer: 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.