Index
Executive Summary

Ⅰ

Financial Summary
Major Indexes for 16th Fiscal Period(Ended January 2023)
Actual Results for 16th Fiscal Period
2.
(Ended January 2023)
Earnings Forecasts for3. 17th Fiscal Period (Ending July 2023) and18th Fiscal Period (Ending January 2024)

1.

Ⅱ

Ⅲ

P4
P5
Ⅳ
P6

Actions for External Growth
1. Road Map to External GrowthP17

2. Asset Replacement

P18

3. Expansion of Pipeline

P20

4. Actions for Acquisition of Hospital Property

P22

ESG Initiatives
1. Materiality

P24

4. Changes in DPU／NAV Per Unit

P7

2. Environment

P25

5. Changes in Unrealized Gain

P8

3. Social

P27

6. Financial Status

P9

4. Governance

P28

7. Changes in Unit Price

P11

Ⅴ

Status of Asset Management

Environment Surrounding Healthcare Industry
1. Supply and Demand of Healthcare Facilities

P30

1. Portfolio Highlights

P13

2. Regional Comprehensive Care System

P31

2. Stable Cash Flow in the Long Term

P14

3. Regional Healthcare Vision

P32

4. Facilities and Housing for the Elderly

P33

Ⅵ

Appendix1

Executive Summary
1

PortfolioConducted the asset replacement for the first time (acquired 2 properties, disposed 1 property)Asset size expanded to 48 properties/79.2 billion yen, The target of 100 billion yen asset size is likely tobe reachedWith the rise of appraisal value, the unrealized gains increased to 9.4 billion yen, and the unrealized
gains ratio expanded from 10.3% to 12.0%

2 Performance

DPU：3,557 yen（+190 yen (+5.6%) from previous fiscal period, +73 yen (+2.1%) from forecast）

NAV per unit ：131,033 yen（+3,964 yen (+3.1%) from previous fiscal period ）The impact of COVID-19 is little. The operational rate recovered 100%.



3 Financial Status

4



Refinanced with social loans.（9.75 billion yen）



Continued the existing basic policy of long term, fixed interest rate and diversified maturitiesInterest-bearing liabilities is 39.15 billion yen (+500 million yen from previous fiscal period) and LTV is48.2% (+0.1pt from previous fiscal period ）Other Topics
Inclusion in FTSE EPRA Nareit Global Real Estate IndexParticipated in GRESB 2022, received “1 Star” in Real Estate Assessment, and the highest “A Level”
rating in Public Disclosure2

Financial SummaryⅠ
3

Ⅰ Financial Summary

1. Major Indexes for 16th Fiscal Period (Ended January 2023)

Figures in parentheses indicate the change
from the end of previous period

Asset (Assets)

Debt (Liabilities)

Number of properties

48 propertiesc(+1 properties)

Total acquisition price79.2 billion yen)(+0.7 billion yen)

Total appraisal value

Unrealized gain

Average appraisal NOI
yield

Portfolio operational rate

Ratio of fixed rents
Ratio of investment inthree major
metropolitan areas
Average remaining leaseterm

88.2 billion yen)(+1.8 billion yen)
9.4 billion yen)(+1.3 billion yen)interest-bearing liabilities

39.15 billion yen)(+0.50 billion yen)

Average remaining terms
to maturity

3.3 years)(+0.7 years)

Average borrowinginterest rate

0.70%)(+0.14pt)

Total amount ofRatio of long-term debt
Ratio of debt with
fixed interest rates

5.5%)

100.0%)（+0.1pt)
100.0%)

Long-Term Issuer Rating(JCR)(△0.3 years)(+0.1pt)

A+ (Stable)

Equity (Net assets)
Market cap
DPU

82.9%_

12.5 years)

94.9%)(+0.1pt)(±0pt)(+0.1pt)(+5.5pt)

48.2%)

LTV(±0pt)

76.4%)

Distribution in excess ofearnings (Note)(Equivalent to return of capital)

NAV per unit

(Note) Distribution in excess of earnings refers to distribution carried out targeting around 20% of depreciation equivalent (return of capital).

58.2 billion yen)(△4.0 billion yen)
3,557 yen)(+190 yen)
0 yen)(△307 yen)
131,033 yen)(+3,964 yen)4

Ⅰ Financial Summary

2. Actual Results for 16th Fiscal Period (Ended January 2023)
Achieved the highest revenue since IPO, and increased DPU by +190 yen (+5.6%) without
distribution in excess of earnings.
(Unit: million yen)

15th fiscal
period16th Fiscal Period Actual Results(Comparison with 15th Fiscal Period)

16th Fiscal Period(Ended January 2023)(Ended July 2022)

ActualForecast(Note 2)

Actual

(A)

(B)

(C)

Operating revenue

2,371

2,621

Operating expenses

1,105

Expenses related to leasing
business

Comparison with 15th Fiscal Period

Comparison with
Forecast

Difference in operating revenue (+261)(C)-(A)(C)-(A)（A）(％)

2,632

+261

11.0%

+11

1,191

1,178

+72

6.6%

△13

784

809

801

+17

2.3%

△7

(Depreciation)

551

563

563

+11

2.1%

△0

General and administrative
expenses

321

381

376

+54

17.1%

△5

1,265

1,429

1,453

+188

14.9%

+24

Non-operating income

2

－

1

△0

△33.8%+1

Non-operating expenses

166

175

176

+9

5.8%

+0

Ordinary income

1,101

1,253

1,279

+178

16.2%

+25

16th Fiscal Period Actual Results(Comparison with Forecast)

Net income

1,100

1,252

1,278

+178

16.2%

+25

Difference in operating revenue (+11)

DPU (yen)

3,367

3,484

3,557

+190

5.6%

+73

Operating income

Distribution of earnings
Distribution of allowance fortemporary difference
adjustments
Distribution in excess of earnings(return of capital) (Note 1)

3,059
1
307

3,484
0

3,557
0
0

(C)-(B) Full-period contribution of rent revenue fromproperties acquired in the 15th fiscal period (+48)
 Increase of rent revenue by asset replacement (+9)

 Capital gain on asset replacement (+204)
Difference in operating expenses (+72)

 Increase in expenses related to leasing business (+17)
Depreciation (+11)
Repair expenses (+6)



Asset management fee (+43)
Cost related to Investors meeting (+6)
Survey fee (+4)

 Increase in general and administrative expenses (+54)


Difference in Non-operating expenses (+9)
 Increase in interest expenses (+9)

 Increase in rent revenue from property newly
acquired (Hanakotoba Oppama) (+9)
 Deference in capital gain on asset replacement (+1)

Difference in operating expenses (△13)

+497

16.2%

+73

△307

△100%

-

 Decrease in expenses related to leasing
business(△7)
 Repair expenses (△7)
 Decrease in general and administrative expenses(△5)
 Advertisement expenses (△2)(Note 1) Distribution in excess of earnings refers to distribution carried out targeting around 20% of depreciation equivalent (return of capital).
(Note 2) The forecast for the 16th Fiscal Period (B) is the forecast figure announced in “ Notice Concerning Revision of Earnings Forecast and Distribution Forecast for Fiscal Period Ending January 2023 and July 2023” dated September
21, 2022.

5

Ⅰ Financial Summary

3. Earnings Forecasts for 17th Fiscal Period (Ending July 2023) and18th Fiscal Period (Ending January 2024)

Net income for the 17th fiscal period is expected to decrease compared with the previous period
due to reduction of capital gain, increase of property taxes related to assets acquired in the 15thand 16th fiscal periods, and increase in interest expenses with rising interest rates(Unit: million yen)

16th Fiscal
Period18th Fiscal Period

17th Fiscal Period(ending January 2024)(ending July 2023)(ending January
2023)

Comparison
with 16th fiscal
periodComparison
with initial
forecast(C)(C)-(A)(C)-(B)

2,420

2,438

△193

+17

2,438

±0

1,178

1,168

1,173

△4

+4

1,183

+10

Expenses related to leasing
business

801

819

822

+20

+2

829

+7

(Depreciation)

563

559

559

△3

+0

566

+6

General and administrative
expenses

376

349

351

△25

+2

353

+2

Operating income

1,453

1,252

1,264

△189

+12

1,254

△10

Non-operating income

1

－

－

△1

±0

－

±0

Non-operating expenses

176

187

201

+25

+14

203

+1

Ordinary income

1,279

1,064

1,063

△216

△1

1,051

△11

Net income

1,278

1,063

1,062

△216

△1

1,050

△11

DPU (yen)

3,557

3,270

3,265

△292

△5

3,235

△30

DPU

3,557

2,958

2,954

△603

△4

2,920

△34

0

312

311

+311

△1

315

+4

Initial forecast

Forecast(A)(B)

Operating revenue

2,632

Operating expenses

Actual(Excluding distribution in excess ofearnings (return of capital)(Note1))

Distribution in excess ofearnings(return of capital) (Note 1)(Note 2)

(Note 3)

Forecast(Note 3)(D)

Comparison
with 17th fiscal
period forecast(D)-(C)

17th Fiscal Period Forecast (Comparison
with 16th Fiscal Period Results)
Difference in operating revenue (△193)
 Full-period contribution of rent revenue fromproperties acquired in the 16th fiscal period (+11)
 Reduction of capital gain (△204)
Difference in operating expenses (△4)
 Increase in expenses related to leasing business (+20)
Tax and dues (+25)

 Decrease in general and administrative expenses (△25)

Asset management fee (△13)
Asset custody fee and administrative service
fees (△7)
 Expenses related to investors meeting (△6)
Difference in Non-operating expenses (+25)
 Increase in interest expenses (+27)


17th Fiscal Period Forecast (Comparison
with Previous 17th Fiscal Period Forecast)Difference in operating expenses (+17)
 Increase in rent revenue from the property newly
acquired (Hanakotoba Oppama) (+17)
Difference in operating expenses (+4)
 Taxes and dues (+2)
 Asset management fee (+2)
Difference in Non-operating expenses (+14)
Increase in interest expenses (+13)
18th Fiscal Period Forecast (Comparison
with 17th Fiscal Period Forecast)Difference in operating expenses (+10)

 Increase in expenses related to leasing business (+7)(Note 1) Distribution in excess of earnings refers to distribution carried out targeting around 20% of depreciation equivalent (return of capital).
 Depreciation (+6)(Note 2) The initial forecast for the 17th Fiscal Period (B) is the forecast figure announced in “Notice Concerning Revision of Earnings Forecast and Distribution Forecast for Fiscal Period Ending January 2023 and July 2023”
dated September 21, 2022.
(Note 3) The forecast for the 17th Fiscal Period (C) and The forecast for the 18th Fiscal Period (D) are the forecast figure announced in “ (REIT) Financial Report for Fiscal Period Ended January 2023” dated March 17, 2023.

6

Ⅰ Financial Summary

4. Changes in DPU／NAV Per Unit
DPU is stable even under the COVID-19 pandemic, and NAV Per Unit has improved.
DPU／NAV Per Unit
Distribution in excess of earnings per unit

(DPU:yen)

4000(NAV Per Unit:yen)Distribution per unit(Excluding distribution in excess of earnings)
3,643
NAV per unit
3,320
3,240
3,226
3,120

3500
3000

(Note 1)

2,653

135,000(Note 2)

3,266

3,367
3,244

131,033

125,000

127,069

2000

124,814

1500
1000

0

130,000

2,699

2500

500

3,557

117,445

118,038

118,986

119,303

119,842

119,268

120,000

120,907

115,000

115,709

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

16th FP

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

January

July

January

July

January

July

January

July

January

July

January

2018

2018

2019

2019

2020

2020

2021

2021

2022

2022

2023

(Note 1) Distribution in excess of earnings refers to distribution carried out targeting around 20% of depreciation equivalent (return of capital).
(Note 2) The amount obtained by subtracting distribution in excess of earnings of DPU is indicated.

COVID-19 spread

110,000

7

Ⅰ Financial Summary

5. Changes in Unrealized Gains
Unrealized gains have been increasing steadily.
(million
yen)
（百万円）

(%)

10,00015
Unrealized gains (left axis)

9,000

14

Unrealized gains ratio (right axis)

12.0

8,000
10.5

7,000

11

8.5
7.0

7.2

7.2

7.5

7.7

9

7.7

8
9,417

6.1
8,091

4,000
3,000
4,711

2,000

0

2,543

2,878

4,901

5,165

5,094

7
6

6,959

1,000

12

10

6,000
5,000

10.3

13

5

5,653

4
3

3,081

2
1

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

16th FP

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

January

July

January

July

January

July

January

July

January

July

January

2018

2018

2019

2019

2020

2020

2021

2021

2022

2022

2023

0

8

Ⅰ Financial Summary

6. Financial Status①
Conducted refinancing of 9.75 billion yen in January 2023, maintained financial stability
through long term, fixed interest rate loans and diversified maturities
Overview of Refinance
Loans to be refinanced
Type
Longterm

AmountInterest rate
（billion yen）
4.00
0.57%

Short-term
Sum /Average

After the refinance

Drawdown
date
2018/3/20

4.8 years

Term

Type

4.00

0.41%

2019/2/1

4.0 years

1.25

0.42%

2020/1/31

3.0 years

0.50

0.31%

2022/9/30

0.3 years

9.75

0.48%

-

4.0 years

Longterm
Sum /AverageAmountDrawdown
Interest rate
（billion yen）
date
2.50
0.72% 2023/1/31

Term
3.0 years

3.25

1.09%

2023/1/31

5.0 years

4.00

1.29%

2023/1/31

6.0 years

9.75

1.08%

-

4.8 years

Diversification of Maturities
Long-term loans(2023 refinanced）
Short-term loans（billion yen）
10

Refinanced Loans
Investment corporation bonds(Social bonds)

9.75
8

Average remaining terms tomaturity：3.3 years

7.25
6.40
5.55

6

5.90

6.05

2.50
3.25

4

2

3.90
2.00

0

2.8

4.00

2.00

16th FP 17th FP 18th FP 19th FP 20th FP 21st FP 22nd FP 23rd FP 24th FP 25th FP 26th FP 27th FP 28th FP 29th FP 30th FP

9Ⅰ Financial Summary

6. Financial Status②
Bank formation centering on SMBC, added SBI Shinsei Bank as a new lender
Status of Interest-Bearing Liabilities
End of15th FP

Change in LTV and Total Interest-Bearing Liabilities
Total interest-bearing liabilities

End of16th FP

Change

39.15

+0.5

40

(billion yen)

Total amount ofinterest-bearing
Liabilities(billionyen)（Social bonds）(billion
yen)

2.0

2.0

±0

30

(years)

2.6

3.3

+0.7

20

Ratio of debt with fixedinterest rates

（%）

94.8

94.9

+0.1

LTV

（%）

48.1

48.2

+0.1

Average borrowing interest （ ）
%
rate

0.56

0.70

+0.14

Average remaining terms tomaturity

38.65

33.15
48.1

10
0

Amount（billion yen）

Total amount

4.2%

33.5%

37.15 billion yen
4.2%
Lender

4.7%
6.1%

15companies

6.2%
8.6%

16.3%

LTV (Market value base)
33.15

33.15

48.2

48.1

33.15

38.65

39.15

（％）

50
48

48.2

48.1

48.2
46

44.8

11th FP

44.9

12th FP

44.5
13th FP

44
43.8

43.7

14th FP

15th FP

43.2
16th FP

42

Rating and Framework Evaluation

Diversification of Lenders

4.2%

LTV (Net assets base)

Ratio（%）

Rating Agency■Sumitomo Mitsui Banking
Corporation

12.45

33.5

■Sumitomo Mitsui Trust Bank

6.05

16.3

■Resona Bank

3.2

8.6

■Nippon Life Insurance

2.3

6.2

■Shinkin Central Bank

2.25

6.1

■Nishi-Nippon City Bank

1.75

4.7

■Dai-ichi Life Insurance
Company

1.55

4.2■Hiroshima Bank

1.55

4.2

■Bank of Fukuoka

1.55

4.2

■77 Bank

1.25

3.4

■San ju San Bank

0.75

2

■Gunma Bank

0.75

2

■Bank of Yokohama

0.75

2

■Higashi-Nippon Bank

0.5

1.4

■SBI Shinsei Bank

0.5

1.4

Total

37.15

100

Japan Credit Rating Agency,
Ltd. (JCR)
External Evaluation Agency

Issuer Rating（Outlook）

Long-Term Issuer RatingA+（Stable）
Social Finance Framework
Evaluation(Note 1)Social 1(F)Japan Credit Rating Agency,
Ltd. (JCR)（The highest evaluation）(Note 1) JCR Social Finance Evaluation is an evaluation performed by Japan Credit Rating Agency, Ltd. (hereinafter,“JCR”) by confirming that the use of funds are in alignment with the Social Finance components of the principles
published by the International Capital Market Association (ICMA) and consistent with the SDGs.

10

Ⅰ Financial Summary

7. Changes in Unit Price
The unit price of HCM has recovered to the level prior to the spread of COVID-19 and has
generally outperformed each index.
September 2022
Asset Replacement

160%
150%
140%

TSE REIT Index
Unit price of HCM
100.0%/137,400 yen（ As of January 31, 2020 ）TSE REIT Residential Index

HCM

January 2022
Conducted the third public offering

September 2022
Announced inclusion in FTSE EPRA
Nareit Global Real Estate Index

130%
120%

March 2020
COVID-19 crisis

110%
100%
90%
80%

(As of February 28,2023)

70%

Unit price of HCM：126.0%/173,100 yen

TSE REIT Index：83.2%TSE REIT Residential Index：92.1%

60%
50%

Jan. 31, 2020

Jul. 31, 2020

Jan. 31, 2021

(Note) It is indicated as a percentage with January 31, 2020, as the base date.

Jul. 31, 2021

Jan. 31, 2022

Jul. 31, 2022

Jan. 31, 2023

11

Status of Asset Management

Ⅱ
12

Ⅱ Status of Asset Management

1. Portfolio Highlights
Key Data

Number ofproperties

Total acquisition
price

Total appraisal
value (Note 1)

Average appraisal
NOI yield

48

79.2 billion yen

88.2 billion yen

5.5%

Average buildingage (Note 1)

Average remaining
lease term (Note 1)

Ratio of fixed rents

Portfolio operationalrate

17.1 years

12.5 years

100%

100.0%(+0.7 billion yen)(+1 properties)(+1.8 billion yen)(△0.3 years)(+0.2 years)(±0pt)(±0pt)(+0.1pt)

Diversification Status (Note 3)
By Area

By Type

Other

Complex of paid nursing home, medical
service-related facilities, etc.

Core cities

16.3%

14.9%

Medical service-related
facilities, etc.
2.6%

Healthcare facilities
100%

Serviced housing for theelderly
6.0%

Paid nursing
home
75.1%

Operators（Note 4）

2.2%

Three Major
Metropolitan areas
82.9%
Kinki area
37.6%

GREEN LIFE Co., Ltd. andareas
Others33.8%

GREEN LIFE HIGASHI NIHON Co., Ltd.
23.8%

Number of operators
16 operators
Sompo Care Inc.
Tokyo Metropolitan
Proud Life Inc.
16.9%
area
7.0%
45.3%
Kyowakai Medical Corporation
Benesse Style Care Co., Ltd.
9.6%
8.9%

(Note 1) “Total appraisal value” is indicated based on the appraisal report with January 31, 2023, as the appraisal date. “Average building age” and “Average remaining lease term” are average values with January 31,
2023, as the base date, calculated by dividing the remaining years to maturity by 365 and weighted by acquisition price. The figures are rounded down to the first decimal place. For properties having multiple
buildings, they indicate weighted-average figures based on area.
(Note 2) Figures in parentheses are comparison with the end of the 15th FP.
(Note 3) The figures in the graphs are calculated based on acquisition price, rounded off to the first decimal place.
(Note 4) The operators of SHIP Senri Building are separated based on an area basis, with Kyowakai Medical Corporation for the Senri-Chuo Hospital portion and GREEN LIFE for the other portions.

13

Ⅱ Status of Asset Management

2. Stable Cash Flow in the Long Term①
By leveraging expertise in the healthcare field, HCM stably owns healthcare facilities
operated by carefully selected operators.
Business Evaluation of Healthcare Facilities and Operators

HCM has built a stable portfolio throughbusiness due diligence and monitoring.
Operators

Operations
capability

Management
stability

Carefully Selected Operators
16 operators with strong track records and high creditworthiness,
including industry-leading SOMPO Care, Benesse Style Care and
GREEN LIFE that belongs to SHIP HEALTHCARE.
 Kyowakai is a major medical corporation that operates 6 hospitals(2,108 beds) and 4 geriatric health services facilities (495 beds), etc.
Top Operators (Based on Acquisition Price) (Note 1)Operator

Total capacity (Note 2)

Share (%)

4,431 people(ranked 25th in Japan) (Note 3)

23.8

29,443 people(ranked 1st in Japan)

16.9

Kyowakai Medical Corporation-

9.6

Benesse Style Care Co., Ltd.

19,798 people(ranked 2nd in Japan)

8.9

GREEN LIFE Co., Ltd.
GREEN LIFE HIGASHI NIHON Co., Ltd.
Sompo Care Inc.

(Note 1)Business due diligence / Monitoring Quantitative and qualitative assessment and analysis
 Regular visits to facilities and on-site inspections(interviews with facility directors, etc.)

Business
profile/activities

Business
model

Financial status

Compliance

Organizational
management

Staff retainment・(Abuse prevention
Development
measures)(Note 2)
(Note 3)The operators of SHIP Senri Building are separated based on an area basis, with Kyowakai Medical
Corporation for the Senri-Chuo Hospital portion and GREEN LIFE for the other portions.
(From) Weekly Senior Housing Newspaper, August 3・10, 2022 issue (No. 681)
Indicates the figure of Ship Healthcare Holdings Co., Ltd. as a whole.

Stable Rent Revenue in the Long Term
 Long-term fixed-rent lease agreements have been concluded withcarefully selected operators.

 No direct impact from rising utility costs, as these costs are borne byoperators in principle.

20 years or more
12.7%
Ratio offixed rents
100%

Averageremaininglease term
12.5 years

Less
than10years
40.5%(Note)

10 years or more but less than
20 years
46.8%(Note) The figure is based on January 31, 2023, as reference date and calculated by weighted averaging
with acquisition prices, rounded down to the first decimal place.

14

Ⅱ Status of Asset Management

2. Stable Cash Flow in the Long Term②
Portfolio operational rate of HCM has been almost 100% since the IPO, and average occupancy
rate of each facility has been maintained at around 90% even amid the COVID-19 pandemic.
Change in Portfolio Operational Rate and Average Occupancy Rate
（％）

100

100

100

100

100

100

100

99.9

100

91.6

91.5

95

90

85

85.2

100

92.6

92.4

84.9

100

91.1

91.3

99.9

100

88.9

89.0

85.3
portfolio operational rate

average occupancy rate

80

75

100

87.7

86.7
84.4

100

3rd FP

4th FP

5th FP

6th FP

7th FP

8th FP

9th FP

10th FP

11th FP

12th FP

13th FP

14th FP

15th FP

16th FP

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

Ended

July

January

July

January

July

January

July

January

July

January

July

January

July

January

2016

2017

2017

2018

2018

2019

2019

2020

2020

2021

2021

2022

2022

2023

(Note) Portfolio operational rate indicates the ratio of the rented area to the leasable area of the assets as of the end of each fiscal year, and is rounded off to the first decimal place. Average occupancy rate is the rate obtained by
dividing the total number of residents by the total capacity for the facilities and housing for the elderly shown in the Property Disclosure Statement of Important Matters provided by the operator and is rounded off to the firstdecimal place.

15

Actions for External GrowthⅢ16Ⅲ Actions for External Growth

1. Road Map to External GrowthWith continuous property acquisition, the asset size expanded to 79.2 billion yen.
The mid-term target of 100 billion yen asset size is likely to be reached.
Change in Asset Size and Number of Properties
March 2015

・ IPO
・ Acquired 16 properties(23.6 billion yen)February 2017

・ Conducted the first public
offering
・ Acquired 6 properties (13.4
billion yen)February 2019

November 2017

・ Acquired J-REIT’s first hospital ・Conducted the second public offering
・ Acquired 8 properties (22.7 billion yen)real estate for 2 billion yen
including hospital real estate

February 2022

・ Conducted the third public offering
・ Acquired 10 properties (11.4 billion yen)

(Number ofproperties)(billion yen)

65

100
Asset size

60

<Target> 90

Number of properties

55

78.4

50
64.8

45

64.8

66.3

66.3

67.0

79.2

67.0

100.0
(Note)

80
70

47

48
60

40
50

35
38.4

40.5

40.5

42.1

35

35

36

36

37

37
40

30
25
20
15

23.6
24

25

25

6th FP
Ended
January
2018

7th FP
Ended
July
2018

30

27

20

16
1st FP
Ended
July
2015

5th FP
Ended
July
2017

8th FP
Ended
January2019

9th FP
Ended
July
2019

(Note) The target may not be achieved due to future events, market environment and other factors.

10th FP
Ended
January
2020

11th FP
Ended
July
2020

12th FP
Ended
January2021

13th FP
Ended
July
2021

14th FP
Ended
January2022

15th FP
Ended
July
2022

16th FP
Ended
January
2023

10

17

Ⅲ

Actions for External Growth

２． Asset Replacement①
Acquired two new paid nursing homes in the Tokyo metropolitan area
Acquired Asset
Paid nursing home-43 Nichii Home Inage

A Residential-type paid nursing home opened in March 2022 by Nichii Care Palace, a major operator in theindustry, which succeeded the business from ALSOK Nursing Care.
 Surrounded by parks and schools, it is located in a calm residential environment with abundant greenery, andfeatures luxurious building specifications.
 High-quality operations are expected in cooperation with Nichii Group's total nursing care network.
Chiba-shi, Chiba
LocationConstruction
completionacquisition dateacquisition priceFebruary 2008
September 30, 2022
1,508 million yen

Appraisal value （Note 1)

1,670 million yen

Appraisal NOI yield（Note1)

5.5%

Remaining years of leaseagreement（Note 2)

10.1 years

Operator

Paid nursing home-44 Hanakotoba Oppama

Nichii Home
Inage

Nichii Carepalace

A paid nursing home with care service operated by Proud Life, a subsidiary of Sony Financial Holdings that
operates mainly in Kanagawa Prefecture. Located along a national route, about 10 minutes’ walk from thenearest station.
 In addition to its high brand value, the facility features competitive pricing and high quality care and medical
services, including multiple nursing staff on duty 365 days a year, and maintains a high occupancy rate.
Yokosuka-shi, Kanagawa
LocationConstruction
completionacquisition dateacquisition price

July 2011
November 10, 2022
500 million yen

Appraisal value （Note 1)

509 million yen

Appraisal NOI yield（Note1)

5.0%

Remaining years of leaseagreement（Note 2)

29.8 years

Operator

Hanakotoba Oppama

Proud Life

(Note 1) Figures in Appraisal NOI, Appraisal NOI yield and Appraisal Value are as of January 31, 2023. Appraisal NOI is rounded down to the nearest million yen and Appraisal NOI yield to the first decimal place.
(Note 2) Remaining years of lease agreement is as of January 31, 2023, rounded down to the first decimal place.

18

Ⅲ

Actions for External Growth

２．Asset Replacement②
HCM’s first asset disposition, with the aim of improving the quality and profitability of theportfolio over the medium- to long-term.
Disposed and Acquired Assets

Acquired Asset

Disposed Asset

Effect of asset replacement

Building age（Note 2）

31.9years（Disposed asset）

14.1 years（Acquired Asset）

Remaining years of lease agreement（Note 2）

4.3 years（Disposed Asset）

Name

Medical Rehabilitation Home
Bonsejour Komaki

Location

Komaki-shi, Aichi

Construction completion

March 1991

Disposition date

September 27, 2022

Disposition price

1,450 million yen

Initial AcquisitionPrice

1,270 million yen

Name
Acquisition price

Nichii Home
Inage
1,508 million yen（Note 1）

Benesse Style Care

（Acquired Asset）

Gain on disposition

204 million yen

・Continue to focus on the expansion

Remaining years of
4.3 years
lease agreement
Operator

15.0 years

Hanakotoba
OppamaAcquisition price 500 million yen
Nameof asset size
・Also consider property
replacements as necessary from theperspective of improving the quality
and profitability of the portfolio overthe medium- to long-term.

（Note 1）The figures is indicated on the assumption of continuous ownership until the end of the 16th fiscal period (January 31, 2023).
（Note 2）Remaining years of lease agreement is calculated based on the figure as of the end of the 16th fiscal period (January 31, 2023). However, for the acquired assets, the figures are weighted averages
based on the acquisition prices of the two properties, rounded down to the first decimal place.

19

Ⅲ Actions for External Growth

3. Expansion of Pipeline①
HCM aims to expand the pipeline through a “gathering system” that utilizes wide-ranging
networks with operators and developers, etc. and their various functions.
System to Gather Quality Deals and Information

Warehousing
functions

Property
information
Asset Management Company

Sponsor Support Companies
Sponsorsupportagreement

Sumitomo Mitsui
Finance and Leasing

Yoei

GinsenKobe Tochi
Tatemono

Support Companies

Muromachi
Building

SMBC Trust Bank Ltd. / RISA Partners, Inc.
Max-Realty Inc. / SMFL Mirai Partners Co., Ltd.

Property
information

Developers
Homebuilders

Pipeline
supportagreement

Wide-ranging networks

Operators

OwnersHealthcare
Asset Management Co., Ltd.

Property
information(Individuals, business companies, funds, etc.)

Medical corporations

20

Ⅲ Actions for External Growth

3. Expansion of Pipeline②
The pipeline has accumulated to about 30 billion yen in total.
The States of Pipeline Accumulation

Pipeline Examples

System to gather quality
deals and information
Facilities andhousing for theelderly(to be developed)

Facilities and housing
for the elderly(in operation)

Facilities and Housing for the Elderly(in operation)
Paid nursing home

Medicalservicerelated
facilities, etc.

Paid nursing home

(Soka-shi, Saitama; 150 rooms)
Paid nursing home

Hapine Esaka(Suita-shi, Osaka; 46 rooms)
Change of ownership of residential type paid nursing
home. Captured the previous owner's selling needs
through sponsor’s network. Operated by Ship
Healthcare Group, maintains stable operation in afavorable location.

Total Pipeline over 30 billion yen(billion yen)

35

Acquisition by SPC formed by asponsor, etc
Acquisition by HCM

25
20

5.5

15

5

10.0

Sep.-19(Note)

13.0

Mar.-20

6.0

4.5

-9.5

Paid nursing home (to be developed)

-1.5

17.0

Sep.-20

Paid nursing home (to be developed)

5.5

3.0

5.0

-1.5

3.0

10

0

Facilities and Housing for the Elderly(to be developed)

Pipeline totaling

30(Sano-shi, Tochigi; 50 rooms)(Sapporo-shi, Hokkaido; 52 rooms)

22.0

Mar.-2125.0

Sep.-2127.0

30.0
PD House Higashiosaka(Higashiosaka-shi, Osaka; 48 rooms)

21.5

Mar.-22

Paid nursing home (to be developed)

Sep.-22Mar.-23

Utilized a warehousing function of a non-sponsor
company, to capture a new developer’s needs ofexiting from development project. A paid nursing
home specializing in Parkinson's disease. Opened
in July 2022.

The above properties are some of healthcare facilities owned by sponsors, etc. The acquisition is undecided and there is no guarantee that HCM will acquire the property in the future.

(Itabashi-ku, Tokyo; 83 rooms)

21

Ⅲ Actions for External Growth

4. Actions for Acquisition of Hospital Property
Investment & Management Policy1Major investment target
 Real estate of stably managed hospitals(Hospitals expected to play a definite role in the Regional
Healthcare Vision) ⇔ Different from business rehabilitation
funds
 Medical malls and health checkup centers, etc. may also
be incorporated into portfolio

2

3

4

Opportunity of REIT Investment (Utilization)

Investment & Management complying with the “Hospital
Real Estate Guidelines”
 Allocation of experts familiar with hospital business in the
Asset Management Company
 Conclusion of a long-term fixed-rent lease agreement, inprincipleMarket size is approximately 23 trillion yen (Note), and hospital real estate accounts for over
50% of the entire healthcare facility real estate market (approximately 51%)



Mostly self-owned by medical corporations, etc.

Major hospital needs

Rebuilding, extension, securing of relocation site with the intention of strengthening medical
functions

Financing for floor expansion and M&A to expand their business

Strengthen financial status, Cash flow management

Concentration of management resources on the main business, Outsourcing of real estatebusinessImproving the brand of operating facilities(Note) Calculated by the Asset Management Company based on the estimate value by KPMG Healthcare Japan Co.,
Ltd. as of June 2016.

Case Example

Investment ratio Together with facilities and housing for the elderly,
accounting for 80% or more of the portfolio
 No upper limit sets for hospital real estate alone

Name

SHIP Senri Building(Senri-Chuo Hospital)

Location

Toyonaka-shi, Osaka

Operator

Kyowakai Medical
Corporation

Number of beds 400

Large-scale multi-use healthcare facility, combining a hospital and apaid nursing home
 Developed and master leased in its entirety by a group company ofSHIP HEALTHCARE Senri Chuo Hospital, a major tenant, opened when the property
was completed (2008) as a hospital mainly responsible forsubacute and chronic care
 HCM acquired it by utilizing the warehousing functions of sponsors
22Promotion for market expansion
 Lectures on utilization of Healthcare REIT at industry groupmeetings (Congress of Japan Hospital Association, etc.)
 Participation in seminars for medical care-related operators
hosted by the Financial Services Agency and the Ministry ofLand, Infrastructure, Transport and Tourism

Size of hospital real estate market

ESG Initiatives

Ⅳ
23

Ⅳ ESG Initiatives

1. Materiality
Worked to contribute to the aged society and enhance unitholder value over the medium tolong term through asset management that contributes to ESG.
Issues that need to be solved
・ Reduction of water resource consumption

Environment

・ Energy conservation and reduction of CO2 emissions
・ Response to natural disasters caused by climatechange (Resilience)・ Waste management and reduction
・ Elimination of the shortage of supply of housing forthe elderly against the elderly population
・ Prevention of job separation due to nursing carethrough the promotion of supply of nursing carefacilities

Social・ Improvement of business efficiency and reduction ofwork burden for nursing care staff
・ Prevention of abuse of residents and harassment offacility staff
・ Response to the deterioration of hospitals andpromotion of earthquake resistance・ Work-life balance, health of staff, etc.

Specific Actions

Highly relevant SDGs

・ Green lease (Kobe Gakuentoshi Building)・ Renovation work for improving the efficiency of
air conditioning system using subsidies(GreenLife Moriguchi and Kobe Gakuentoshi Building)・ Use of Environmentally Friendly Materials (GreenLife
Moriguchi)・Landslide Prevention Measures (Hanakotoba Oppama)・ Introduced EGAO link, a system for enhancing efficiencyof nursing care services (ASHEIM Hikarigaoka and
ASHEIM Bunkyohakusan)
・ Operator employment support for people with disabilities(GreenLife Moriguchi, SHIP SENRI BUILDING)
・ Tenant (Operator) Satisfaction Surveys
・ Employee satisfaction survey at the Asset Management
Company, continued implementation of Premium Friday,
and introduction of a corporate-type defined contribution
plan
・ Separation of Executive Director of HCM and CEO of theAsset Management Company (resolved at the general
meeting of unitholders in October 2020)

・ Establishment of a system in which an external third
party periodically verifies the operation status of thewarehousing rules in order to appropriately manage
・ Fair transaction (Appropriate management of conflicts
transactions with interested parties.
of interest)
・ Transparency in decision making

Governance・ Management of various risks (including elimination of ・ Continue to share examples of initiatives taken by eachantisocial forces)
department and exchange opinions at the "CustomerOriented Committee” of the Asset Management Company
・ Monthly compliance workshops held at the asset
management company

24

Ⅳ ESG Initiatives

2. Environment①
External Evaluation/Environmental Certification
GRESB Participation in the GRESB from 2022
HCM received a "1 Star" rating in the GRESB Real Estate
Assessment and the highest "A Level" rating in the GRESB
Public Disclosure.
Conversion of Lighting Equipment to LEDs (Green Lease)Converted lighting equipment in common-area to LEDs,
reducing electricity consumption by about 70%. Both HCM
and tenants receive economic benefits from theintroduction of green lease agreements.(2021, Kobe
Gakuentoshi Building)＜Case of Kobe Gakuentoshi Building(Hapine Kobe Gakuentoshi)＞
LED construction work

Healthcare & Medical
Investment Corporation

Property owner

TCFD Recommendations
 In March 2023, HCM announced its support for TCFD
(Task Force on Climate-related Financial Disclosure) andparticipated in the TCFD Consortium, an organization ofdomestic TCFD supporting companies

BELS Evaluation
The following HCM properties have been rated by
BELS(Building-housing Energy-efficiency Labeling System)
NOAH GARDEN L Grace

Advantage：
Increase of rent income

Part of reduced electricity cost, etc.
Pay in addition to the rent

Light Bulb
Replacement Cost
23％

Green Lease Fee(Add to the rent)
26％
69％ Reductionof Electricity Cost

Before the
Implementation

Advantage：
Reduction of electricity cost

Cost reduction for
the tenant due tothe Green Lease
50％

Electricity Cost
77％

NOAH GARDEN Season Bell

TenantElectricity Cost
24％
After theImplementation

Green lease：Win-win action in which property owner and tenant work together toreduce environmental burdens such as energy saving of real estate and improve theworking environment, and both sides can benefit from cost reductions, etc.

25

Ⅳ ESG Initiatives

2. Environment②
Use of Environmentally Friendly Materials

Improving Resilience (adaptability to disasters, etc.)

Environmentally friendly products were used when replacing
the floors（2022, GreenLife Moriguchi）
 Half the amount of products weight consists of recycledmaterials, which reduced CO₂ emissions（recycled from discarded agricultural vinyl and scrap
materials generated during manufacturing）
 Easy to clean flooring, which improved sanitation
 Improved safety due to fewer steps


Although safety measures such as spraying mortar andinstalling a retaining wall had already been implemented tothe steep slopes extending from east to south side of“Hanakotoba Oppama”, HCM acquired the property after
the seller implemented additional landslide prevention
measures to strengthen safety for the sake of long-term
investment in the healthcare facility.（2022）【Before the implementing of the measures】【After the implementing of the measures】

Area of flooring materials used

2,328 ㎡

Gross weight of flooring materials

20.5 Ton
CO₂ emissions

17.7 Ton

Ratio of recycled materials

50 ％Reduction ratio of CO₂ emissions

53 ％Usage of recycled materials

10.2 Ton
Reduction amount of CO₂ emissions

9.4 Ton*Reduction ratio of CO₂ emissions means the comparison to the same merchandise without recycled materials.

（Image of recycle）（Image of durable UV resin coating ）26

Ⅳ ESG Initiatives

3. Social

Stakeholder Engagement

System Investment Utilizing ICT(EGAO link)Introduced a system capable of understanding of situation,
input records, and response to calls with smartphone,supported the improvement of efficiency of nursing careservices.(ASHEIM Hikarigaoka, ASHEIM Bunkyohakusan)

HAM conducts a satisfaction survey of operators of its
properties on a regular basis (in principle once a year), andshares the results of this survey (requests, issues, etc.) withthe property management company to increase operator
satisfaction.
Survey results (conducted in February 2022)
Survey collection rate

Satisfaction NPS（Number of satisfaction－
Number of dissatisfaction ）Answers 28/
37 properties

Plus 16/28 properties■Answer Effect of Introduction of EGAO link
The quality of nursing care services is expected to improvethrough the improvement of business efficiency of nursing carestaff and the reduction of work burden through ICT investments.

■No answer■Plus■Minus■NeutralInterviews with operators in the asset management report(optional page) disseminated operator features and initiatives.

Employment Support for People with Disabilities


Taking advantage of available space in the facility, hydroponic
cultivation of vegetables is carried out as a job assistanceproject for people with disabilities.
(Green Life Moriguchi, SHIP Senri Building)GreenLife Moriguchi (GREEN LIFE Co., Ltd.)27

Ⅳ ESG Initiatives

4. GovernanceDecision-Making Flow Concerning Acquisition of Assets Under
Management

Basic Management Policy
Implementation of customer-oriented business operation- HAM established the “Customer-Oriented Committee”.
 Strengthening autonomous compliance framework- Holding monthly compliance workshops.(More than 20
times a year)Appropriate Management of Conflicts of Interest


Related party is defined in broader terms than interested party,
etc. under the Investment Trust Law, and established a system
to carry out transactions after conducting rigorous
examinations.
interested party, etc.
under theInvestment Trust Law

Investment Department

Proposal of acquisition plan by the Investment Department(Property due diligence by the Investment Department)

When the candidate asset under management to be

When the candidate asset under management to beacquired is a healthcare facility or hospital real estate

acquired is a property other than healthcare facility
or hospital real estate
Healthcare Business Promotion Department or External Experts (if necessary)
Preparation of evaluation reports about the management status of a facility
and submission to the Investment Department

Compliance Officer (CO) [ Responsible for compliance ]Confirmation by Compliance Officer of existence or non-existence of issues on legal compliance and other compliance(hereinafter, "legal compliance issues")

Instructions forcancellation orchangeofcontent

When the transaction falls under the category of related-party transactio,or if the ComplianceOfficer judges that it is necessary to consider the lecompliance issues concernig the proposed income plan

related party

Compliance Committee[Held prior to the Management Committee meeting when there is a related-party
transaction or legal compliance issue.]
Deliberation and resolution of the existence or non-existence of legal compliance issues by

Acquisition fee for property acquisition from related party andDisposition fee for property disposition to related party

the Compliance Committee.
Committee members: President & CEO, Full-time Director, Compliance Officer,
External member (External lawyer)

Acquisition or Disposition price×0.5%（usually 1.0%）is upper limit

Resolution requirements: Resolution by approval of a majority of attending committee
members; however, attendance and approval of the CO and

Separation of Executive Director of HCM and CEO of the AssetManagement Company



From November 1, 2020, the system in which CEO of asset
management company concurrently serves as executive
director of HCM was dissolved.
Investment corporation

asset

managementcompany

external committee member are required.
Management Committee[The final decision-making body for investment decisions, it deliberates and resolves on HCM's property acquisitions,etc., as delegated by the Board of Directors.]＊However, if the proposed acquisition plan falls under the category of interested-party transaction, which requires theapproval of HCM's Board of Directors under the Investment Trusts Act, such prior approval will be obtained.
Deliberation and resolution at the Management Committee (The Compliance Officer may order the suspension ofdeliberation and resolution by the Management Committee when it is judged that there are issues such as legal violationin the procedures of proceedings and the content of deliberation.)
Committee members: President & CEO, Full-time Director, Head of each department, External member (External Licensed
Real Estate Appraiser), CO (without voting rights)
Resolution requirements: A resolution must be passed with at least three-fourths of the committee members in attendancAppropriate
check and balance
Executive Director

Yuji Fujise

and the approval of at least three-fourths of the committee members in attendance (however, texternal committee members must approve).

CEO

Seiji Yoshioka

Board of Directors of HAM and HCM
Reportiong to the Board of Directors of HAM and HCM(However, if the proposed acquisition plan falls under the category of transaction with interested party, etc. that
requires approval of HCM's Board of Directors based on the Investment Trust Act, prior approval of the HCM's Board of
Directors shall be obtained.)28

Environment Surrounding
the Healthcare Industry

Ⅴ
29

Ⅴ Environment Surrounding the Healthcare Industry

1. Supply and Demand of Healthcare Facilities
Rising Elderly Ratio and Increase in Elderly Single
Households

Upgrades and Expansion of Healthcare Facilities
June
Backedby Government Policy
2015

Outlook of Change
in Japan’s Population and65-74
ElderlyRatio
75 years old or older
years old

(10 thousand people)

64 years old or younger
Ratio of 65 years old and over

15,000

Actual10,161

10,00010,71810,854

5,000

10.3%

0

3.9%
776
471

1,109
717

1985

1995

14.5%
5.7%

9,218

20.1%
1,407
1,160

9.1%

2005

Ratio of 75 years old and over
Estimate

30.0%

28.0%

26.3%

8,577

8,788
14.5%

12.7%

17.8%

32.8%

40%

36.8%

21.4%
7,740 19.6% 6,723

1,734
1,613

1,709
1,825

1,497
2,180

1,522
2,260

1,643
2,277

2015

2020

2025

2035

2045

March
2021

30%

10%
0%

Ratio of Housing for the Elderly as a Percentage of the Elderly Population
Outcomeindicator

the National Institute of Population and Social Security Research

Ratio of Elderly Single Households in Elderly Households
その他
Other

30,000

夫婦のみ
Couple with noother members
Actual

20,000

27.3%

24.8%

9,365

9,022
10,000

6,420

5,525

0

29.6%
9,090
6,848

39.0%

50%

40.0%

40%

6,606

6,510

6,590

6,763

6,693

6,666

6,870

7,959

8,418

8,963

5,928

6,717

7,512

2015

2020

2025

2020年

37.4%

6,756

2010

2015年

単独高齢者割合
Ratio of single elderly

35.7%

4,791
2010年

単独
SingleEstimate

2030

2025年

A target to raise the ratio of housing for the elderly
as a percentage of the elderly population to 4% by
2030 was set.

20%

Source: Statistics Bureau, Ministry of Internal Affairs and Communications “2020 census“ and “Population Projection for Japan (2017 projection)” by(Thousand households)

Housing Life Basic Plan
(nationwide plan)

2030年

2035

2035年

Resident Capacity

Resident Capacity（Note）

thousand people

thousand people

thousand people

230

thousand people

20%

2005

0%

1,490
2030

2018

2014

0.9％

10%

890

690

Resident Capacity

30%

2040

Resident Capacity

４％

2.5％

2.1％

(Note) Resident capacity is estimated based on the outcome indicator for the ratio of housing for the elderly
as a percentage of the elderly population.

2040年

Source: Statistics Bureau, Ministry of Internal Affairs and Communications “2020 census“ and “Household Projection for Japan (Nationwide Projection)”(2018 projection) by the National Institute of Population and Social Security Research

Promotion of Further Supply of Healthcare Facilities

Current Status of Reconstruction of Hospitals, etc.

Although supply of facilities and housing for the elderly is on the rise each year, the supply
rate of paid nursing homes against the elderly population was a mere 1.8% in 2021, andpromotion of further supply is needed.
(people)Supply Status of Paid Nursing Homes
Resident capacity

600,000
400,000

1.5%

1.6%

1.6%

1.7%

1.8%

1.0%

1.1%

1.2%

1.3%

315,234

350,990391,144424,828

482,792

518,507552,350

576,116

609,472

634,395

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

0.57%

Supply rate for 65 years ole or older
0.70%
0.67%
0.64%
0.61%

1.5%

Supply Status of Serviced Housing for the Elderly
Number of units

200,000

0.42%

0.50%

8,000
6,000

0.72%

0.75%

0.29%
89,122

Number of hospitals whose seismic resistance of buildings is unknown
Number of hospitals where all buildings are not earthquake resistant
Number of hospitals with earthquake resistance in some buildings
Number of hospitals with earthquake resistance in all buildings

0.5%
0.0%

0

100,000

2.0%

1.0%

200,000

300,000

Ratio of quake-resistant paid nursing homes is 95% or more while that ofquake-resistant hospitals remains at 77.3%.
Quake-resistant statues of hospitals


Supply rate for 65 years ole or older
1.4%

Hospitals that were constructed in the 1960’s and 1970’s and do not meetthe earthquake resistance standards still exist.



1.00%

0.50%

0.00%
2012 Dec.2013 Dec.2014 Dec.2015 Dec.2016 Dec.2017 Dec.2018 Dec.2019 Dec.2020 Dec.2021 Dec.

1,747

1,569

1,466

122
729

131
719

141
704

141
674

1,344
123
664

1,344
113
633

1,153
100
619

1,070
99
586

5,687

5,880

6,050

6,130

6,231

6,318

6,382

6,467

2014

2015

2016

2017

2018

2019

2020

2021

4,000

135,352 166,279 191,871 210,859 225,374 238,289 250,352 262,021 272,870

0

1,955

2,000
0

surveysurveysurveysurveysurveysurveysurveySource: Ministry of Health, Labor and Welfare “Survey of hospital seismic repairs (2021 survey)”

survey30

Ⅴ Environment Surrounding the Healthcare Industry

2. Regional Comprehensive Care System
Regional Comprehensive Care System○ We will establish a regional comprehensive care system that provides residences, medical care, nursing care, preventative medicine and life support in an
integrated manner to offer an environment where the elderly can continue living in an area they are used to, even after they come to require nursing care,in around 2025 when the baby-boomer generation will be 75 or older.
○ Establishment of a regional comprehensive care system is necessary to support the lives in regions where elderly with dementia live as the number of
elderly with dementia is expected to increase in the future.
○ There is a large regional difference concerning the progress of aging. There are, for example, large cities with the overall population remaining flat but the
population of people aged 75 years old or older increasing rapidly and rural areas with the population of people aged 75 years old or older increasingslightly although the overall population decreasing.
It is necessary for municipalities and prefectural governments, which are the insurer, to create a regional comprehensive care system based on autonomy
and independence and in accordance with regional characteristics.

Image of Regional Comprehensive Care System
When you get sick...
Medical care••Acute care hospital
Subacute and recovery phase/recovery
phase rehabilitation hospital

When you need nursing care...
Nursing care

Hospital visit&
stay

Daily medical care:• Primary care doctor• Regional cooperative
hospital

Outpatient nursing care&admission

Residence• Regional comprehensive
support center• Care manager••
We coordinate consultation
business and services

Own house
Serviced housing for the elderly, etc.

Patients
with dementia

 In-home service:• Long-term home-visit nursing care, home-visit nursing,outpatient day long-term nursing care
• Multifunctional long-term nursing care in a small grouphome• Short-term admission for daily life long-term nursing care
• 24-hour home-visit service• Combined service(Multifunctional long-term nursing care in a small grouphome + home-visit nursing), etc.
 Nursing care prevention service

To live a healthy life forever...

Life support & nursing care prevention

 Facility and home service• Long-term care welfare facility
for the elderly• Long-term care health facility forthe elderly• Communal daily long-term
nursing care for a dementia
patient• Daily life long-term nursing carefor those admitted to a specified
facility, etc.

* Regional comprehensive care systems are expected to beestablished for each area in the sphere of everyday life
(specifically junior high school districts) where necessary
services are provided within about 30 minutes

Golden age club, local government, volunteer, NPO, etc.
Source: Website of Ministry of Health, Labor and Welfare

31

Ⅴ Environment Surrounding the Healthcare Industry

3. Regional Healthcare Vision“Regional Healthcare Vision” is to estimate and stipulate medical demand (number of patients) and required number of beds in 2025 for each
medical function in each area of the vision (secondary medical area) in order to promote functional differentiation and coordination of
hospital wards.
Following this, prefectural governments and medical staff will respond to realize the formulated initiative.
Current hospital bed functions(as of 2020)(Hospital Ward A)

Total 1.209 million beds

Medical institution

Advanced acutestage function

Distortion of
medical balance
and financial
concerns due tooveremphasis on
advanced acutestage

Number of Beds to be Requiredin 2025

Advanced acute stage
156,000 beds
(13%)

Total 1.191 million beds (Note)

Decrease by approx. 25%(Hospital Ward B)

Voluntarily
selectmedicalfunction

Acute stage
function

Acute stage
401,000 beds
(34%)
Acute stage
547,000 beds
(45%)

(Hospital Ward C)
Recovery stage
function

Recovery stage
375,000 beds
(31%)

(Hospital Ward D)
Chronic stage
function

Increase by approx. 2 times

Recovery stage
189,000 beds
(16%)

Prefectural
government

Advanced acute stage
131,000 beds
(11%)

Report current status andfuture direction of medical
functions

Decrease by approx. 10%

Chronic stage
317,000 beds
(26%)

Establish “Regional Healthcare Vision” by utilizing reports on medical
functions, etc. and promote further functional differentiation

Shift to nursing carefacilities, in-home medicalcare, etc.

Chronic stage
284,000 beds
(24%)

Nursing care facilities, inhome medical care, etc.
Approx.
300,000 people(Source) Prepared by the Asset Management Company based on “Initiatives for Medical/Nursing Care
Reform” (June 22, 2017) by the Ministry of Health, Labour and Welfare(Note 1) The upper chart is prepared by the Asset Management Company based on the “Community Healthcare Initiative”
of the Ministry of Health, Labour and Welfare.

(Note)

Total of Cabinet Secretariat’s estimates (June 2015). Within the range of 1.148 million beds
to 1.191 million beds.

32

Ⅴ Environment Surrounding the Healthcare Industry

4. Facilities and Housing for the Elderly

Characteristics

Mainfounder

Paid nursing homes with careservice

These are paid nursing homes for the elderly that fall under the prefectural government’s designation of “Daily Life
Long-Term Care Admitted to a Specified Facility” for long-term insurance. Facility staff provide nursing care services
when residents need nursing care, and the nursing care fee is a fixed amount (fixed) based on the level of nursing
care required for respective residents. Facilities must be designated in order to open (restrictions apply).

For-profit
Entities

Residential type paid nursing
homes

Unlike paid nursing homes with care service, these are paid nursing homes for the elderly in which residents
themselves enter separate contracts with external operators to receive nursing care services in the case they neednursing care. The nursing care fee is based on the amount of nursing care services the resident used (variable).
Facilities need to notify the government in order to open.

For-profit
Entities

Serviced housing for the elderly(Sakouju)

This is rental housing for the elderly that meets registration standards for size, facilities, etc. At a minimum, it must
provide safety confirmation and living consultation services. Facilities must register in order to open.

For-profit
entities

Long-term daily care fordementia patients in communal
living situation(Group homes)

These are one type of community-based long-term care service business stipulated by the Long-Term Care
Insurance Act. Their purpose is to delay the progress of dementia of users, who are people requiring nursing careand in the state of dementia, through communal living in small groups of up to nine people per unit with assistanceand functional training.

For-profit
Entities

Facilities covered by public aid
providing long-term care to theelderly(intensive care homes for theelderly)

These are welfare facilities for the elderly for people requiring nursing care on a continual and steady basis but havedifficulty receiving it at home. With stricter admission requirements since April 2015, these facilities in principle
target elderly people requiring long-term care level 3 or higher.

Social welfare
corporations

Geriatric health services facilities

These are facilities to provide medical treatment, nursing care under medical supervision, functional training andother necessary medical services as well as everyday care with the aim of returning people requiring nursing care toa self-independent state and living at their own homes.

MedicalCorporations

Integrated facilities for medical
and long-term care

Established in April 2018, these are facilities that provide everyday medical supervision, a certain level of nursing
care and residential functions to elderly people who require long-term recuperation. End-of-life care and deathwatch
are also available.

MedicalCorporations

Type

33

AppendixⅥ34

Ⅵ Appendix

Portfolio Map
1

Ratio of investment inthree major
metropolitan areas

2

82.9%
Strategic
investment inthree major
metropolitan
areasTokyo metropolitan area

39
21

7
3
9
20

33

10

37 38 3

8

15

31
14

2
4

27 26 25
23

1

34

22
17
34

2 19 1

16

35

30
29

35

4142
40
36

13
12
11

Paid nursing
home

5

24 44

43

28

Serviced housing
for the elderly
Medical servicerelated facilities,
etc.

Complex of paid
nursing homes,
medical servicerelated facilities, etc.

Bonsejour Musashi-shinjo

5

Medical Rehabilitation Home
Bonsejour Hadanoshibusawa

8

ASHEIM Bunkyohakusan

9

SOMPO CARE La vie Re
Machidaonoji
SOMPO CARE La vie Re
Azamino10
11

Paid nursing
home

ASHEIM Hikarigaoka

SAWAYAKA Tachibanakan

12

SAWAYAKA Mekarikan

13

SAWAYAKA Tagawakan

14

GOOD TIME HOME Fudo-mae

15Bonsejour Yotsugi

16

Medical Home Bonsejour
Itami
Kobe Gakuentoshi Building(Hapine Kobe Gakuentoshi)

17
18

GreenLife Moriguchi

19

Hapine Kobe Uozaki Nibankan

37

20Granda Tsuruma-Yamato

38

NOAH GARDEN L Grace

21

Smiling Home Medice Adachi

39

NOAH GARDEN Season Bell22

40

Heartland Kawaguchi Meiseien

41

Granda Minamiurawa

23

Aikoen Ichibankan Building(Aikoen Ichibankan)

42

Madoka Minamiurawa

43

Nichii Home Inage

Royal Kawaguchi

44 Hanakotoba Oppama

32

Bonsejour Hino

4

NOAH GARDEN LEGEND

36

1

1 18

SOMPO CARE La vie Re
Kobe-ikawadani
SOMPO CARE Sompo no ie
SayamaBonsejour Chitose-funabashi

3

7

45.3%
Kinki area 37.6%
Core cities14.9%
Other areas 2.2%

AQUAMARINE
Nishinomiyahama

1

SOMPO CARE Sompo no ie S
Awajiekimae

3

SOMPO CARE Sompo no ie S
Kobekamisawa
NOAH GARDEN CASA RICH

1

Niigata Rehabilitation Hospital

1

SHIP SENRI BUILDING

2

Hanakotoba Minami

24

Hanakotoba Miura

25

SOMPO CARE La vie Re
Hama-Kawasaki

26
27
28

Hanakotoba Shin-Yokohama
Hanakotoba Shin-Yokohama
II
Hanakotoba Odawara

29

Verde Minowa

30

Verde Hotaka

31

Sunny Life Kita-Shinagawa

32

Sunny Life Kamakura

33

Nichii Home Nishikokubunji

35

Ⅵ Appendix

Details of Portfolio①
Paid nursing home

4

5

1

2

3

AQUAMARINE
Nishinomiyahama

Bonsejour Chitose-funabashi

Bonsejour Hino

Bonsejour Musashi-shinjo

Medical Rehabilitation Home
Bonsejour Hadanoshibusawa

Location

4-15-2 Nishinomiyahama,Nishinomiya-shi, Hyogo

1-37-3 Funabashi,
Setagaya-ku, Tokyo

438-1 Ochikawa,
Hino-shi, Tokyo

773-2 Chitose, Takatsu-ku,
Kawasaki-shi, Kanagawa

1-6-60 Shibusawakami,
Hadano-shi, Kanagawa

Nearest station

Hanshin Nishinomiya Stationon the Hanshin Main Line

Chitose-Funabashi Stationon the Odakyu Odawara Line

Mogusaen Stationon the Keio LineMusashi-Shinjo Stationon the JR Nambu Line

Shibusawa Station
on Odakyu Odawara Line

Construction completion

May 2007

March 1988

May 1990

February 1985

July 1991

Acquisition period

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Appraisal NOI (Note 1)

117 million yen

48 million yen

43 million yen

39 million yen

47 million yen

Appraisal NOI yield (Note 1)

6.0％

5.9％

6.0％

6.8％

6.5％

Appraisal value (Note 1)

2,100 million yen

997 million yen

834 million yen

643 million yen

850 million yen

Acquisition price (ratio)

1,950 million yen (2.5%)

824 million yen (1.0%)

724 million yen (0.9%)582 million yen (0.7%)728 million yen (0.9%)

Site area

2,587.93 m²

1,020.92 m²

2,211.28 m²

1,233.49 m²

2,588.04 m²

Leasable area

5,274.54 m²

2,342.17 m²

1,984.17 m²

1,710.43 m²

3,435.79 m²

Structure/
number of floors (Note 2)

RC, 5F

RC, B1 6FRC, 3FRC, 4FRC, 5F

Number ofrooms/resident capacity

90 rooms, 100 people

42 rooms, 47 people

56 rooms, 58 people

46 rooms, 49 people

100 rooms, 101 people

occupancy rate (Note 3)

99.0％

78.7％

93.1％

95.9%

89.1％

Operator

GREEN LIFE

Benesse Style Care

Benesse Style Care

Benesse Style Care

Benesse Style Care

Remaining years of leaseagreement (Note 4)

14.3 years

3.3 years

3.3 years

3.8 years

4.3 years

36

Ⅵ Appendix

Details of Portfolio②
Paid nursing home

)

7

8

9

10

ASHEIM Hikarigaoka

ASHEIM Bunkyohakusan

SOMPO CARE La vie Re
Machidaonoji

SOMPO CARE La vie Re
AzaminoLocation

4-3-23 Yahara,
Nerima-ku, Tokyo

4-36-13 Hakusan,
Bunkyo-ku, Tokyo

Nearest station

Shakujii-Koen Stationon the Seibu Ikebukuro Line

Hakusan Stationon the Toei Subway Mita Line

Construction completion

March 2006

February 2007

Acquisition period

Fiscal period ended July 2015

Appraisal NOI (Note 1)

1612 Onojimachi,
Machida-shi, Tokyo
OdakyuKeio Nagayama
Nagayama
Stationon the Keio
Station
Sagamiharaon the Odakyu
Line
Tama Line

11
SAWAYAKA Tachibanakan

19-24 Ayumigaoka, Tsuzuki-ku,
173-15 Oaza Ryugeji,
Yokohama-shi, Kanagawa
Hakata-ku, Fukuoka-shi, Fukuoka
Nakagawa Stationon the Yokohama Municipal
Subway Blue Line

Sasahara Stationon the JR Kagoshima Honsen
Line

October 2007

March 2004

October 2005

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

76 million yen

74 million yen

193 million yen

156 million yen

93 million yen

Appraisal NOI yield (Note 1)

5.5％

5.2％

5.3％

5.1％

6.1％

Appraisal value (Note 1)

1,590 million yen

1,790 million yen

4,140 million yen

3,480 million yen

1,610 million yen

Acquisition price (ratio)

1,385 million yen (1.7%)

1,430 million yen (1.8%)

3,580 million yen (4.5%)

3,050 million yen (3.8%)

1,520 million yen (1.9％)

Site area

2,868.46 m²

540.29 m²

7,404.13 m²

2,748.64 m²

3,359.66 m²

Leasable area

3,628.60 m²

2,507.25 m²

7,720.17 m²

5,789.25 m²

5,652.94 m²

Structure/
number of floors (Note 2)

RC, 3FRC, 8F

RC, B1 6F

RC, B1 5F

RC, B1 6F

Number ofrooms/resident capacity

83 rooms, 89 people

50 rooms, 52 people

163 rooms, 169 people

145 rooms, 145 people

104 rooms, 104 people

occupancy rate (Note 3)

86.5％

92.3％

80.5％

95.9％

94.2％

Operator

AS PARTNERS

AS PARTNERS

Sompo Care

Sompo Care

Sawayaka Club

Remaining years of leaseagreement (Note 4)

11.1 years

4.1 years

4.7 years

4.4 years

5.0 years

37

Ⅵ Appendix

Details of Portfolio③
Paid nursing home

16

12

13

14

15

SAWAYAKA Mekarikan

SAWAYAKA Tagawakan

GOOD TIME HOME Fudo-mae

Bonsejour Yotsugi

Medical Home Bonsejour Itami

1-9-15 Okubo, Moji-ku,
Kitakyushu-shi, Fukuoka
Mojiko Stationon the JR Kagoshima HonsenLine393-1 Oaza Ita,
Tagawa-shi, Fukuoka
Magarikane Stationon the Heisei Chikuho Railway
Tagawa Line

5-25-13 Nishigotanda,
Shinagawa-ku, Tokyo

3-1-11 Higashiyotsugi,
Katsushika-ku, Tokyo
Yotsugi Stationon the Keisei Railway OshiageLine

1-2-25 Chuo,
Itami-shi, Hyogo
Hankyu Itami Stationon the Hankyu Railway Itami
Line

Construction completion

November 2005

January 2006

March 1992

March 1989

March 1989

Acquisition period

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2016

Fiscal period ended July 2016

Appraisal NOI (Note 1)

85 million yen

25 million yen

91 million yen

47 million yen

38 million yen

Appraisal NOI yield (Note 1)

6.2％

6.4％

5.2％

5.7％

7.5％

Appraisal value (Note 1)

1,480 million yen

398 million yen

2,100 million yen

905 million yen

557 million yen

Acquisition price (ratio)

1,380 million yen (1.7％)

390 million yen (0.5％)

1,740 million yen (2.2%)

824 million yen (1.0%)

514 million yen (0.6%)

Site area

3,758.26 m²

4,300.90 m²

1,206.60 m²

1,136.46 m²

1,976.11 m²

Leasable area

4,720.46 m²

2,366.20 m²

3,400.20 m²

1,962.89 m²

2,129.87 m²

Structure/
number of floors (Note 2)

RC, 4FRC, 3F

RC, B1 5F

RC, 5F

SRC, 11F (Exclusive portion)

Number ofrooms/resident capacity

95 rooms, 95 people

60 rooms, 60 people

61 rooms, 67 people

61 rooms, 65 people

62 rooms, 64 people

occupancy rate (Note 3)

89.5％

98.3％

85.1％

81.5％

71.9％

Operator

Sawayaka Club

Sawayaka ClubJAPAN LIFEDESIGN

Benesse Style Care

Benesse Style Care

Remaining years of leaseagreement (Note 4)

5.0 years

5.0 years

3.8 years

2.9 years

4.3 years

Location
Nearest station

Fudo-mae Stationon the Tokyu Meguro Line38

Ⅵ Appendix

Details of Portfolio④
Paid nursing home

21

17

18

19

20

Kobe Gakuentoshi Building(Hapine Kobe Gakuentoshi)

GreenLife Moriguchi

Hapine Kobe Uozaki Nibankan

Granda Tsuruma-Yamato

Smiling Home Medice Adachi

2-3-41 Shimotsuruma,
Yamato-shi, Kanagawa

3-35-10 Minamihanabatake,
Adachi-ku, Tokyo

Tsuruma Stationon the Odakyu Enoshima Line

Rokucho Stationon the Tsukuba Express

Location

1-1-2 Gakuennishimachi,
Nishi-ku, Kobe-shi, Hyogo

6-17-34 Satanakamachi,
8-10-7 Uozakiminamimachi,
Moriguchi-shi, Osaka
Higashinada-ku, Kobe-shi, Hyogo
Dainichi Stationon the Osaka Municipal Subway
Uozaki Station
Tanimachi Line and Osakaon the Hanshin Electric Railway
Monorail

Nearest station

Gakuentoshi Stationon the Kobe Municipal Subway
Seishin-Yamate Line

Construction completion

January 2009

September 2006

March 2010

March 1998

November 2005

Acquisition period

Fiscal period ended July 2017

Fiscal period ended July 2017

Fiscal period ended July 2017

Fiscal period ended July 2017

Fiscal period ended July 2017

Appraisal NOI (Note 1)

226 million yen

220 million yen

48 million yen

53 million yen

120 million yen

Appraisal NOI yield (Note 1)

5.2％

5.3％

5.2％

5.3％

5.3％

Appraisal value (Note 1)

4,600 million yen

4,650 million yen

1000 million yen

1,060 million yen

2,560 million yen

Acquisition price (ratio)

4,320 million yen (5.5%)

4,150 million yen (5.2%)

930 million yen (1.2%)

1,000 million yen (1.3%)

2,253 million yen (2.8%)

Site area

2,742.81 m²

5,872.83 m²

932.94 m²

2,877.11 m²

2,069.41 m²

Leasable area

12,636.48 m²

8,356.85 m²

1,772.89 m²

3,427.08 m²

3,870.98 m²

Structure/
number of floors (Note 2)

RC, B1 9F

S RC, 9F

S, B1 4F

RC S, 5FRC, 4F

Number ofrooms/resident capacity

131 rooms, 138 people

155 rooms, 189 people

47 rooms, 47 people

73 rooms, 90 people

82 rooms, 82 people

occupancy rate (Note 3)

92.8％

100.0％

95.7％

73.3％

90.2％

Operator

GREEN LIFE

GREEN LIFE

GREEN LIFE

Benesse Style Care

GREEN LIFE HIGASHI NIHON
Co., Ltd.

Remaining years of leaseagreement (Note 4)

18.1 years

16.7 years

18.1 years

1.1 years

14.0 years

39

Ⅵ Appendix

Details of Portfolio⑤
Paid nursing home

22

23

24

25

26

Aikoen Ichibankan Building(Aikoen Ichibankan)

Hanakotoba Minami

Hanakotoba Miura

SOMPO CARE La vie Re HamaKawasaki

Hanakotoba Shin-Yokohama

Location

1-3239-1 Tamachi, Chuo-ku,
Niigata-shi, Niigata

2-4-38 Shinkawacho,
Minami-ku, Yokohama-shi,
Kanagawa

3-5 Suwacho,
Miura-shi, Kanagawa

23-1 Tajimacho, Kawasaki-ku,
Kawasaki-shi, Kanagawa

Nearest station

Niigata Stationon the JR Shinetsu Main Line

Yoshinocho Stationon the Yokohama Municipal
Subway Blue Line

Misakiguchi Stationon the Keikyu Kurihama Line

Odasakae Stationon the JR Nambu Line

Construction completion

February 2010

February 2010

June 2007

March 2007

March 2004

Acquisition period

Fiscal period ended July 2017

Fiscal period ended July 2019

Fiscal period ended July 2019

Appraisal NOI (Note 1)

43 million yen

56 million yen

35 million yen

89 million yen

109 million yen

Appraisal NOI yield (Note 1)

5.6％

5.2％

5.6％

5.2％

5.2％

Appraisal value (Note 1)

838 million yen

1,270 million yen

668 million yen

1,850 million yen

2,460 million yen

Acquisition price (ratio)

770 million yen (1.0%)

1,071 million yen (1.4%)

615 million yen (0.8%)

1,710 million yen (2.2%)

2,071 million yen (2.6%)

Site area

2,597.52 m²

428.76 m²

1,017.55 m²

2,832.33 m²

894.00 m²

Leasable area

4,311.20 m²

1,710.68 m²

1,959.64 m²

4,060.21 m²

5,230.23 m²

Structure/
number of floors (Note 2)

S, 5F

RC, 7FRC, 4FRC, 4F (exclusively-owned
portion)RC, 9F

Number ofrooms/resident capacity

90 rooms, 90 people

51 rooms, 51 people

53 rooms, 54 people

58 rooms, 58 people

136 rooms, 136 people

occupancy rate (Note 3)

90.0％

94.1％

100.0％

89.7％

90.4％

Operator

Medical Corporation AIKOKAI

Proud Life Inc.

Proud Life Inc.

Sompo Care

Proud Life Inc.

Remaining years of leaseagreement (Note 4)

13.5 years

9.8 years

9.8 years

4.9 years

9.8 years

Fiscal period ended January 2019 Fiscal period ended January 2019

1-11-5 Shinyokohama,
Kohoku-ku, Yokohama-shi,
Kanagawa
Shin-Yokohama Stationon the Yokohama Municipal
Subway Blue Line and the JR
Yokohama Line40

Ⅵ Appendix

Details of Portfolio⑥
Paid nursing home

Location

Nearest station

27

28

29

30

Hanakotoba
Shin-Yokohama II

Hanakotoba Odawara

Verde Minowa

Verde Hotaka

1-11-11 Shinyokohama, Kohokuku,
Yokohama-shi, Kanagawa
Shin-Yokohama Stationon the Yokohama Municipal
Subway Blue Line and the JR
Yokohama Line

3-9-12 Sakawa,
Odawara-shi, Kanagawa

31
Sunny Life Kita-Shinagawa

839-4 Aza Machiyabo, Kamishiba,
1221 Aza Maebara, Oaza
3-8-6 Kitashinagawa, ShinagawaMisatomachi, Takasaki-shi,Namashina, Kawaba-mura, Toneku, Tokyo
gun, Gunma
Gunma

Kamonomiya Stationon the JR Tokaido Line

Takasaki Stationon the JR Takasaki Line

Numata Stationon the JR Joetsu Line

Shimbamba Stationon the Keikyu Line

Construction completion

April 2007

September 2009

November 2003 (Building 1)
February 1974 (Building 2)

September 1982 (Building 1)
July 1989 (Building 2)

September 2018

Acquisition period

Fiscal period ended July 2019

Fiscal period ended July 2019

Fiscal period ended July 2019

Fiscal period ended July 2019

Fiscal period ended July 2019

Appraisal NOI (Note 1)

21 million yen

49 million yen

109 million yen

91 million yen

90 million yen

Appraisal NOI yield (Note 1)

5.8％

5.6％

6.7％

6.9％

4.9％

Appraisal value (Note 1)

384 million yen

946 million yen

1,730 million yen

1,460 million yen

2,090 million yen

Acquisition price (ratio)

375 million yen (0.5%)880 million yen (1.1%)

1,620 million yen (2.0%)

1,328 million yen (1.7%)

1,825 million yen (2.3%)

Site area

375.00 m²

1,202.12 m²

７,920.29 m2

4,375.31 m²

1,105.12 m²

Leasable area

1,837.29 m²

2,203.42 m²

11,098.17 m²

6,352.86 m²

2,135.54 m²

Structure/
number of floors (Note 2)

RC, B1 7FRC, 4F

S, 5F (Building 1)
S RC, 8F (Building 2)

S SRC, 5F (Building 1)
S, 2F (Building 2)

S, 3F

Number ofrooms/resident capacity

29 rooms, 30 people

60 rooms, 65 people

174 rooms, 206 people

121 rooms, 174 people

66 rooms, 66 people

occupancy rate (Note 3)

96.7％

98.5％

96.1%

98.9％

86.4％

Operator

Proud Life Inc.

Proud Life Inc.

Verde Corporation

Verde Corporation

Kawashima Corporation

Remaining years of leaseagreement (Note 4)

9.8 years

9.8 years

4.3 years

4.3 years

20.7 years

41

Ⅵ Appendix

Details of Portfolio⑦
Paid nursing home

32

33

34

35

36

Sunny Life Kamakura

Nichii Home Nishikokubunji

SOMPO CARE La vie Re
Kobe-ikawadani

SOMPO CARE Sompo no ie
SayamaRoyal Kawaguchi

Location

214-4 Aza Kichime, Kamimachiya,
Kamakura-shi, Kanagawa

2-11-22
Nishikoigakubo,
Kokubunji-shi, Tokyo

1745-1
Ozaki, Arise, Ikawadanicho,
Nishi-ku, kobe-shi, Hyogo

548-1
Minaminoda, Higashi-ku
Sakai-shi, Osaka

2-5-24 Aoki,
Kawaguchi-shi, Saitama

Nearest station

Shonan-Machiya Stationon the Shonan Monorail

Nishikokubunji Stationon the JR Chuo Line

Sayama Station on the Nankai
Koya Line

Kawaguchi-Motogo Stationon the Saitama Railway

Construction completion

September 2014

September 1990

August 2005

October 2008

Acquisition period

Fiscal period ended July 2020

Fiscal period ended July 2021

Fiscal period ended July 2022

Fiscal period ended July 2022

Fiscal period ended July 2022

Appraisal NOI (Note 1)

76 million yen

36 million yen

63 million yen

32 million yen

62 million yen

Appraisal NOI yield (Note 1)

5.3％

5.0％

4.9％

5.4％

4.9％

Appraisal value (Note 1)

1,620 million yen

777 million yen

1,300 million yen

647 million yen

1,340 million yen

Acquisition price (ratio)

1,418 million yen (1.8%)

720 million yen（0.9％）

1,288 million yen（1.6％）

600 million yen（0.8％）

1,260 million yen (1.6%)

Site area

2,055.67 m2

1,948.41 ㎡

3,606.00 ㎡

2,264.75 ㎡

2,294.91㎡

Leasable area

3,817.91 m2

1,559.99 ㎡

3,824.54 ㎡

1,997.87 ㎡

3,484.02㎡

Structure/
number of floors (Note 2)

S, 5F

S, 3F

RC・S, 4F

S, 3F

RC, 3F

Number ofrooms/resident capacity

128 rooms, 128 people

46 rooms, 46 people

80 rooms, 80 people

50 rooms, 50 people

56 rooms, 56 people

occupancy rate (Note 3)

89.1％

91.3％

82.5％

84.0％

91.1％

Operator

Kawashima Corporation

Nichii Carepalace

Sompo Care Inc.

Sompo Care Inc.

SENIOR LIFE SUPPORT

Remaining years of leaseagreement (Note 4)

16.7 years

0.1 years (Note 5)

13.1 years

2.6 years

26.6 years

Ikawadani Stationon the Kobe Municipal Subway
Seishin-Yamate Line
April 2009(New construction)
December 2015(Expansion)42

Ⅵ Appendix

Details of Portfolio⑧
Paid nursing home

37

38

39

40

41

NOAH GARDEN LEGENDNOAH GARDEN L Grace

NOAH GARDEN Season BellHeartland Kawaguchi Meiseien

Granda Minamiurawa

3-10-17 Kamiaoki,
Kawaguchi-shi, Saitama

63-2 Nishinotsuma, Koyaba,
Kawaguchi-shi, Saitama

Hatogaya Stationon the Saitama Railway

Minami-Urawa Stationon the JR Keihin-Tohoku Line

Nearest station

Kaminopporo Stationon the JR Chitose Line

Kaminopporo Stationon the JR Chitose Line

5-3-1 1-Jo, Fukuzumi,
Toyohira-ku, Sapporo-shi,
Hokkaido
Fukuzumi Stationon the Sapporo City Subway

Construction completion

October 2015

October 2017

December 2019

January 2006

July 2011

Acquisition period

Fiscal period ended July 2022

Fiscal period ended July 2022

Fiscal period ended July 2022

Fiscal period ended July 2022

Fiscal period ended July 2022

Appraisal NOI (Note 1)

48 million yen

35 million yen

78 million yen

100 million yen

49 million yen

Appraisal NOI yield (Note 1)

5.6％

5.6％

5.8％

5.0％

4.8%

Appraisal value (Note 1)

910 million yen

660 million yen

1,520 million yen

2230 million yen

1,100 million yen

Acquisition price (ratio)

859 million yen (1.1%)

622 million yen (0.8%)1,350 million yen (1.7%)

2,000 million yen (2.5%)

1,022 million yen（1.3％）

Site area

9,012.28㎡

9,012.28㎡

3,636.38㎡

1,996.66㎡

2,620.05㎡

Leasable area

2,736.89㎡

2,075.25㎡

4,602.26㎡

3,885.90㎡

2,373.25㎡

Structure/
number of floors (Note 2)

RC, 4FRC, 4FRC, 5FRC, 6F

S, 3F

Number ofrooms/resident capacity

72 rooms, 72 people

51 rooms, 51 people

136 rooms, 136 people

97 rooms, 100 people

58 rooms, 60 people

occupancy rate (Note 3)

72.2％

92.2％

71.3％

100.0％

85.0％

Operator

NOAH KONZERNOAH KONZERNOAH KONZERMEISHO

Benesse Style Care

Remaining years of leaseagreement (Note 4)

27.1 years

27.1 years

29.1 years

8.6 years

18.4 years

Location

10-4-3 2-Jo, Utsukushigaoka,
10-4-1 2-Jo, Utsukushigaoka,
Kiyota-ku, Sapporo-shi, Hokkaido Kiyota-ku, Sapporo-shi, Hokkaido

43

Ⅵ Appendix

Details of Portfolio⑨
Paid nursing home

42

43

44

Madoka Minamiurawa

Nichii Home Inage

Hanakotoba Oppama

Location

58 Nishinotsuma, Koyaba,
Kawaguchi-shi, Saitama

2153-2 Miyanogicho, Inage-ku,
Chiba-shi, Chiba

1-1-11 Oppamacho, Yokosuka-shi,
Kanagawa

Nearest station

Minami-Urawa Stationon the JR Keihin-Tohoku Line

Inage Station on the JR Sobu Line

Keikyu-Taura station on the Keikyu
LineConstruction completion

April 2005

February 2008

July 2011

Acquisition period

Fiscal period ended July 2022

Fiscal period ended January 2023

Fiscal period ended January 2023

Appraisal NOI (Note 1)

39 million yen

83 million yen

25 million yen

Appraisal NOI yield (Note 1)

4.8%

5.5%

5.0%

Appraisal value (Note 1)

883 million yen

1670 million yen

509 million yen

Acquisition price (ratio)

822 million yen（1.0％）1508 million yen（1.9％）

500 million yen（0.6％）

Site area

2,620.05㎡

2,444.12㎡

1,499.82㎡

Leasable area

1,918.98㎡

4,700.07㎡

1,899.46㎡

Structure/
number of floors (Note 2)

S, 3F

RC, 4F

S, 5F

Number ofrooms/resident capacity

54 rooms, 54 people

85 rooms, 95 people

59 rooms, 59 people

occupancy rate (Note 3)

98.1％

61.1％

96.6％

Operator

Benesse Style Care

Nichii Carepalace

Proud Life Inc.

Remaining years of leaseagreement (Note 4)

2.2 years

10.1 years

29.8 years

44

Ⅵ Appendix

Details of Portfolio⑩
Serviced housing for the elderly

Location
Nearest station

Medical service-related
facilities, etc.

Paid nursing home・ medical
service-related facilities, etc.

1

1

2

3

1

SOMPO CARE Sompo no ie S
Awajiekimae

SOMPO CARE Sompo no ie S
Kobekamisawa

NOAH GARDEN CASA RICH

Niigata Rehabilitation Hospital

SHIP SENRI BUILDING

8-2-5 Kamisawadori, Hyogo-ku,
Kobe-shi, Hyogo

10-4-5 2-Jo, Utsukushigaoka,
Kiyota-ku, Sapporo-shi, Hokkaido

761 Kizaki, Kita-ku, Niigata-shi,
Niigata

1-4-3 Shinsenri-higashimachi,
Toyonaka-shi, Osaka

Kamisawa Stationon the Kobe Municipal Subway
Seishin-Yamate Line

Kaminopporo Stationon the JR Chitose Line

Hayadori Stationon the JR Hakushin Line

Senri-Chuo Stationon the Kita-Osaka Kyuko Namboku
Line and the Osaka Monorail

3-20-26 Awaji, Higashiyodogawaku,
Osaka-shi, Osaka
Awaji Stationon the Hankyu Railway Kyoto andSenri Lines

Construction completion

June 2009

June 2009

March 2015(New construction)
Octorber 2016(Expansion)

April 1990 (Building 1)
February 2001 (Building 2)

Acquisition period

Fiscal period ended July 2015

Fiscal period ended July 2015

Fiscal period ended July 2022

Fiscal period ended January 2018

Fiscal period ended July 2019

Appraisal NOI (Note 1)

116 million yen

72 million yen

91 million yen

153 million yen

678 million yen

Appraisal NOI yield (Note 1)

6.0％

6.0％

5.6％

7.4％

5.2％

Appraisal value (Note 1)

2,350 million yen

1,420 million yen

1,730 million yen

2,300 million yen

14,200 million yen

Acquisition price (ratio)

1,930 million yen (2.4%)

1,200 million yen (1.5%)

1,619 million yen（2.0％）

2,060 million yen (2.6%)

12,920 million yen (16.3%)

Site area

1,251.26 m²

743.22 m²

9,012.28㎡

15,056.85 m²

4,202.65 m²

Leasable area

5,745.15 m²

4,058.35 m²

4,986.98㎡

13,476.55 m²

24,813.85 m²

Structure/
number of floors (Note 2)

RC, 12F

S, 9F

RC, 4F（SECOND COURT：5F）

RC, 3F (Building 1)
S, 5F (Building 2)

RC, B1 11F

Number ofrooms/resident capacity

137rooms, 137 people

85 rooms, 85 people

115 rooms, 115 people

168 beds

Hospital: 400 beds
Paid nursing home: 181 rooms,
200 people

occupancy rate (Note 3)

74.5％

87.1%

73.9％

-

Paid nursing home: 100 %Operator

Sompo Care

Sompo Care

NOAH KONZER

Medical Corporation AIKOKAI

Kyowakai Medical Corporation
GREEN LIFE

Remaining years of leaseagreement (Note 4)

11.5 years

11.5 years

27.1 years

24.1 years

15.7 years

September 2008

(Note 1) Figures in Appraisal NOI, Appraisal NOI yield and Appraisal Value are as of January 31, 2023. Appraisal NOI is rounded down to the nearest million yen and Appraisal NOI yield to the first decimal place.
(Note 2) As for abbreviation used in Structure column, SRC refers to steel-reinforced concrete, RC refers to reinforced concrete and S refers to steel structure.
(Note 3) The bed occupancy rate indicates the ratio obtained by dividing the number of residents by the capacity, rounded off to the first decimal place. The number of residents used in the calculation is described in thelatest Property Disclosure Statement of Important Matters, which the Asset Management Company obtained as of the date of preparing this document, for the facilities and housing for the elderly owned by HCM.
(Note 4) Remaining years of lease agreement is as of January 31, 2023, rounded down to the first decimal place.
(Note 5) As of the date of this document, the lease period has been extended to March 11, 2028.

45

Ⅵ Appendix

Operator List①
Operator nameGREEN LIFE Co., Ltd.
GREEN LIFE HIGASHINIHONCo., Ltd.

Sompo Care Inc.

Kyowakai Medical
Corporation

Benesse Style Care
Co., Ltd.

Proud Life Inc.

NOAH KONZER
Co.,Ltd

Number of facilities(Note 1)

Remarks

A consolidated
subsidiary of SHIPHEALTHCAREHOLDINGS, INC.,
which is listed on
the TSE Prime
MarketA nursing care business that plays a central
role in the Lifecare Business of SHIPHEALTHCARE HOLDINGS, INC. Operates
nursing care facilities nationwide.

AQUAMARINE Nishinomiyahama
Kobe Gakuentoshi Building (Hapine Kobe Gakuentoshi)
GreenLife Moriguchi
Hapine Kobe Uozaki Nibankan
Smiling Home Medice Adachi
SHIP SENRI BUILDING

A consolidated
subsidiary of
Sompo Holdings,
Inc., which is listedon the TSE Prime
MarketMainly operates paid nursing homes with careservice under the Sompo Care La vie Re
brand and mid-to low-end homes under the
SOMPO CARE Sompo no ie brand and the
SOMPO CARE Sompo no ie S brand, centeringon three major metropolitan areas.

SOMPO CARE La vie Re Machidaonoji
SOMPO CARE La vie Re Azamino
SOMPO CARE Sompo no ie S Awajiekimae
SOMPO CARE Sompo no ie S Kobekamisawa
SOMPO CARE La vie Re Hama-Kawasaki
SOMPO CARE La vie Re Kobe-ikawadani
SOMPO CARE Sompo no ie Sayama

16.9

6

-

A major medical corporation operating a wide
range of businesses including six hospitals(2,108 beds), four long-term care healthfacilities (495 beds), and home care support.
Provides safe and convenient medical/nursing
care services ranging from acute-stage
medical care to rehabilitation, home medicalcare, and nursing care.

SHIP SENRI BUILDING (Senri-Chuo Hospital)

9.6－

A consolidated
subsidiary ofBenesse Holdings,
Inc., which is listedon the TSE Prime
MarketOperates seven brands in Tokyo, Osaka,
Nagoya, and elsewhere in Japan. The brands
are mainly mid-to high-end, such as
Bonsejour and GRANNY AND GRANDA.

Bonsejour Chitose-funabashi
Bonsejour Hino
Bonsejour Musashi-shinjo
Medical Rehabilitation Home Bonsejour Hadanoshibusawa
Bonsejour Yotsugi
Medical Home Bonsejour Itami
Granda Tsuruma-Yamato
Granda Minamiurawa
Madoka Minamiurawa

8.9－

A consolidated
subsidiary of Sony
Group Corporation,
which is listed on
the TSE Prime
MarketA former Yuuai Holdings Group company.
Operates paid nursing homes, etc. under the“Hanakotoba” brand, centering on Kanagawa
Prefecture. Affiliated with Sony Financial
Holdings Inc. since 2017.

Hanakotoba Minami
Hanakotoba Miura
Hanakotoba Odawara
Hanakotoba Shin-Yokohama
Hanakotoba Shin-Yokohama II
Hanakotoba Oppama

7.0

Unlisted company

The company operates facilities and for theelderly in Sapporo City, and the number offacilities serviced housing for the elderly andthe number of units they operate rank first in
Hokkaido. The company is a comprehensive
welfare service provider also engaging in thedevelopment of medication support systems
and rental of assistive products with its
affiliated companies providing meal services,
designing and constructing medical/nursing
care facilities, etc.

NOAH GARDEN LEGENDNOAH GARDEN L Grace
NOAH GARDEN Season BellNOAH GARDEN CASA RICH

5.6

Hospital

28

－

38

452

4

(Note 4)

343

31

23

－

－

－

Facilities owned by HCM

Share
(%)

Attribute

Facilities andhousing forthe elderly(Note 2)23.8

(Note 3)46

Ⅵ Appendix

Operator List②
Operator name

Sawayaka Club Co.,
Ltd.

Number of facilities(Note 1)
Facilities andhousing forthe elderly

Hospital

94－

Facilities owned by HCM

Share
(%)

Attribute

Remarks

A of UCHIYAMAHOLDINGS Co.,
Ltd., which is listedon the TSE
Standard Market

Operates facilities under the SAWAYAKA
brand (low price range without advance fees)around Japan, centering on Fukuoka
Prefecture.

SAWAYAKA Tachibanakan
SAWAYAKA Mekarikan
SAWAYAKA Tagawakan

4.2

Sunny Life Kita-Shinagawa
Sunny Life Kamakura

4.1(Note 2)

Kawashima
Corporation

145－

Unlisted company

A major nursing care business operator
operating nationwide centering on the Tokyo
Metropolitan Area, with Sunny Life as themain brand and under the motto “Encourage
the elderly and the family to get relieved
from exhausting nursing care.” None of theirfacilities requires initial fees.

Verde Corporation

6－

Unlisted company

A core company of the Hotaka Kai Group, anursing care/welfare business group holding
the largest number of rooms in Gunma
Prefecture.

Verde Minowa
Verde Hotaka

3.7

Operating hospitals and clinics as well as paid
nursing home with care service, group homeand long-term care health facilities in Niigata
Prefecture

Aikoen Ichibankan Building (Aikoen Ichibankan)
Niigata Rehabilitation Hospital

3.6

Medical Corporation
AIKOKAI

13

2

A medical
corporation which
belongs to NSG
Group with sales ofover 110 billion
yen (Note 5)

AS PARTNERS Co.,
Ltd.

22

－

Unlisted company

Operates paid nursing homes and day service
facilities under the ASHEIM brand in theTokyo Metropolitan Area.

ASHEIM Hikarigaoka
ASHEIM Bunkyohakusan

3.6

Nichii Carepalace Company operates "Nichii
Home", a paid nursing home, and "Iris
Garden", serviced housing for the elderly,
mainly in the Tokyo metropolitan area. It is acore company that promotes in-homenursing care for the Nichii Group, which
operates nationwide, focusing on nursing
care, medical care, and education.

Nichii Home Nishikokubunji
Nichii Home Inage

2.8

Nichii Carepalace
Company81－

A consolidated
subsidiary of
NICHIIGAKKAN
CO., LTD., whichis unlistedcompany

Meisho Co., Ltd.

31－

Unlisted company

Having Sonoda Medical Corporation as its
parent organization, the company operates
paid nursing homes and such in Tokyo,
Saitama and Chiba Prefectures.

Heartland Kawaguchi Meiseien

2.5－

Unlisted company(Capitalpartnership byNomura Real
Estate Holdings,
Inc.)

Operates paid nursing homes under the
GOOD TIME HOME brand in Tokyo. Operates
in Kyushu and Hokkaido besides the Tokyo
Metropolitan Area through SOUSEIJIGYOUDAN Co., Ltd., the parent company,
and other subsidiaries.

GOOD TIME HOME Fudo-mae

2.2－

A affiliate ofZensho Holdings
Co., Ltd., which islisted on the TSE
Prime Market

The company is a nursing care service
provider under the umbrella of Zensho
Holdings Co., Ltd., which operates foodservise and such.

Royal Kawaguchi

1.6JAPAN LIFEDESIGNInc.

SENIOR LIFE
SUPPORT Co.,Ltd32(Note 1) “Number of facilities” indicates figures tallied by the Asset Management Company based on information obtained from each company (including announced materials) and information on its website (as of March 31, 2023).
(Note 2) Shares based on acquisition price are indicated. Furthermore, the operators of SHIP Senri Building are separated based on an area basis, with Kyowakai Medical Corporation for the Senri-Chuo Hospital portion and GREEN LIFE Co., Ltd.
for the other portions.
(Note 3) The share of GREEN LIFE HIGASHI NIHON Co., Ltd. is 2.8%.
(Note 4) Only the number of long-term care health facilities is indicated.
(Note 5) Indicates the actual figures in September 2023 based on NSG Group’s website.

47

Ⅵ Appendix

Summary of Appraisal Report①
Summary of Appraisal Report (Note 1)
Property name

AQUAMARINE Nishinomiyahama
Bonsejour Chitose-funabashi
Bonsejour Hino
Bonsejour Musashi-shinjo
Medical Rehabilitation Home Bonsejour Hadanoshibusawa
ASHEIM Hikarigaoka
ASHEIM Bunkyohakusan
SOMPO CARE La vie Re Machidaonoji
SOMPO CARE La vie Re Azamino
SAWAYAKA Tachibanakan
SAWAYAKA Mekarikan
SAWAYAKA Tagawakan
GOOD TIME HOME Fudo-mae
Bonsejour Yotsugi
Medical Home Bonsejour Itami
Kobe Gakuentoshi Building (Hapine Kobe Gakuentoshi)
GreenLife Moriguchi
Hapine Kobe Uozaki Nibankan
Granda Tsuruma-Yamato
Smiling Home Medice Adachi
AIKOEN ICHIBANKAN Building
Hanakotoba Minami
Hanakotoba Miura
SOMPO CARE La vie Re Hama-Kawasaki
Hanakotoba Shin-Yokohama

Appraisal company

Rich Appraisal
Institute Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
InstituteJapan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
JLL Morii Valuation &Advisory K.K.
Japan Real Estate
Institute

End of January
2023
Appraisal value(million yen)(A)

Direct capitalization
methodIndicatedvalue(million yen)

DCF method

Capitalization
rate
(%)

Indicatedvalue(million yen)

Discount rate(%)
(Note 2)

Terminal
capitalization
rate (%)

Appraisal NOI(million yen)
(Note 3)End ofJuly 2022
Appraisal value(million yen)(B)

Difference(million yen)(A)-(B)

2,100

2,110

5.2

2,090

4.9

5.4

117

2,100

0

997

1,020

4.3

987

4.4

4.5

48

997

0

834

849

4.7

827

4.8

4.9

43

818

+16

643

653

5.1

638

5.2

5.3

39

643

0

850

864

5.0

844

5.1

5.2

47

850

0

1,590

1,590

4.5

1,590

4.3

4.6

76

1,560

+30

1,790

1,800

4.1

1,780

3.9

4.2

74

1,750

+40

4,140

4,160

4.5

4,110

4.3

4.6

193

4,050

+90

3,480

3,500

4.3

3,450

4.1

4.4

156

3,400

+80

1,610

1,620

5.3

1,590

5.1

5.5

93

1,580

+30

1,480

1,490

5.4

1,460

5.2

5.6

85

1,450

+30

398

401

5.5

395

5.3

5.7

25

391

+7

2,100

2,120

4.1

2,080

3.9

4.2

91

2,050

+50

905

922

4.6

897

4.7

4.8

47

886

+19

557

566

5.1

553

5.2

5.3

38

557

0

4,600

4,600

4.5

4,580

4.3

4.7

226

4,540

+60

4,650

4,720

4.4

4,620

4.2

4.6

220

4,500

+150

1,000

1,020

4.5

997

4.3

4.7

48

995

+5

1,060

1,070

4.7

1,050

4.8

4.9

53

1,060

0

2,560

2,590

4.5

2,540

4.6

4.7

120

2,500

+60

838

840

5.1

837

5.2

5.3

43

860

△22

1,270

1,280

4.3

1,260

4.1

4.4

56

1,240

+30

668

676

4.8

665

4.9

5.0

35

668

0

1,850

1,880

4.5

1,820

4.3

4.7

89

1,810

+40

2,460

2,480

4.1

2,440

3.9

4.2

109

2,400

+60

48

Ⅵ Appendix

Summary of Appraisal Report②
Summary of Appraisal Report (Note 1)
Property nameAppraisal company

Hanakotoba Shin-Yokohama II
Hanakotoba Odawara
Verde Minowa
Verde Hotaka
Sunny Life Kita-Shinagawa
Sunny Life Kamakura
Nichii Home Nishikokubunji
SOMPO CARE La vie Re Kobe-ikawadani
SOMPO CARE Sompo no ie Sayama
Royal Kawaguchi
NOAH GARDEN LEGENDNOAH GARDEN L Grace
NOAH GARDEN Season BellHeartland Kawaguchi Meiseien
Granda Minamiurawa
Madoka Minamiurawa
Nichii Home Inage
Hanakotoba Oppama
SOMPO CARE Sompo no ie S Awajiekimae
SOMPO CARE Sompo no ie S Kobekamisawa
NOAH GARDEN CASA RICH
Niigata Rehabilitation Hospital
SHIP SENRI BUILDING

Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
Rich Appraisal
Institute Co., Ltd.
Rich Appraisal
Institute Co., Ltd.
Daiwa Real EstateAppraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteRich Appraisal
Institute Co., Ltd.
Rich Appraisal
Institute Co., Ltd.
Rich Appraisal
Institute Co., Ltd.
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
InstituteJapan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.
Japan Real Estate
Institute
The Tanizawa Sogo
Appraisal Co., Ltd.

Total
Difference (except The assets acquired in 16th FP)(Note 1)
(Note 2)
(Note 3)End of January
2023
Appraisal value(million yen)(A)

Direct capitalization
methodIndicatedvalue(million yen)

DCF method

Capitalization
rate
(%)

Indicatedvalue(million yen)

Discount rate(%)
(Note 2)

Terminal
capitalization
rate (%)

Appraisal NOI(million yen)
(Note 3)End ofJuly 2022
Appraisal value(million yen)(B)

Difference(million yen)(A)-(B)

384

385

5.0

382

4.8

5.2

21

383

+1

946

959

4.9

941

5.0

5.1

49

946

0

1,730

1,740

4.9

1,720

4.7

5.1

109

1,700

+30

1,460

1,470

5.3

1,450

5.1

5.5

91

1,430

+30

2,090

2,120

4.2

2,070

4.0

4.4

90

2,040

+50

1,620

1,640

4.4

1,610

4.5

4.6

76

1,620

0

777

790

4.2

771

4.0

4.4

36

760

+17

1,300

1,320

4.3

1,290

4.1

4.5

63

1,300

0

647

656

4.7

643

4.5

4.9

32

647

0

1,340

1,350

4.2

1,330

4.0

4.4

62

1,310

+30

910

920

5.1

910

5.2

5.3

48

910

0

660

660

5.1

660

5.2

5.3

35

660

0

1,520

1,530

5.0

1,520

5.1

5.2

78

1,520

0

2,230

2,240

4.2

2,210

4.0

4.3

100

2,180

+50

1,100

1,110

4.1

1,090

3.9

4.2

49

1,100

0

883

893

4.1

879

3.9

4.2

39

883

0

1,670

1,700

4.6

1,660

4.4

4.8

83

―

+1,670

509

512

4.4

508

4.5

4.6

25

―

+509

2,350

2,370

4.8

2,320

4.6

5.0

116

2,250

+100

1,420

1,430

4.9

1,400

4.7

5.1

72

1,390

+30

1,730

1,740

5.1

1,720

5.2

5.3

91

1,730

0

2,300

2,310

6.5

2,290

6.3

6.7

153

2,300

0

14,20014,4004.5

14,1004.5～4.6

4.7

678

14,200088,206

89,126―85,574

―

―

4,390

86,364+3,292+1,113“Appraisal value” is based on the appraisal report with January 31, 2023, as the appraisal date.
“Discount rate” represents a yield used to discount net cash flow during an analysis period and terminal value at the end of an analysis period back to present value. The indicated figures are those used by the respective appraisal organizations.
For SHIP Senri Building, the rate is 4.5% for 1 year and 4.6% for 2 years onward.
“Appraisal NOI” indicates net operating income obtained by direct capitalization method stated in real estate appraisal report with January 31, 2023 as the appraisal date, rounded down to the nearest million yen. In addition, NOI is revenue
before deducting depreciation and differs from NCF (net cash flow), which is the amount calculated by adding the gain on investment from security deposits, etc. to NOI and deducting capital expenditures. The same shall apply hereinafter in thisdocument.

49

Ⅵ Appendix

Status of Income/Expenditure of Properties①
Real estate leasebusiness revenue
Property name

(Unit: thousand yen)

Real estate lease business expenses

Rent
Other
revenue revenue

Property tax Outsourcing

RepairexpensesInsurance
expenses

Depreciation
andamortization

Other

16th FPNOI(Note 2)

15th FPNOI(Note 2)AQUAMARINE Nishinomiyahama

26,760

4,249

2,100

2,175

236

17,599400

58,181

59,888

Bonsejour Chitose-funabashi

5,610

1,813

225

-

122

3,048

401

21,371

21,366

Bonsejour Hino

5,078

1,247

214

-

85

3,130

400

19,473

19,496

Bonsejour Musashi-shinjo

4,128

1,030

167

-

82

2,447

400

16,136

16,138

Medical Rehabilitation Home Bonsejour
Hadanoshibusawa

8,399

1,813

213

-

154

5,817

400

21,11421,097

Medical Rehabilitation Home Bonsejour
Komaki (Note 3)

5,447

2,158

62

-

225

2,875

124

11,42739,542ASHEIM Hikarigaoka

16,407

3,868

381

72

212

11,471400

40,81340,364ASHEIM Bunkyohakusan

12,304

2,572

381

-

129

8,819

400

39,00338,453

SOMPO CARE La vie Re Machidaonoji

49,166

5,945

780

2,457

392

39,190400

95,024

95,522

33,085

4,705

780

2,500

285

24,413400

76,52875,520SAWAYAKA Tachibanakan

26,635

2,669

1,200

-

370

21,994400

47,21647,213SAWAYAKA Mekarikan

26,483

2,982

1,200

-

273

21,628400

43,37843,375SAWAYAKA Tagawakan

8,485

1,106

1,200

-

119

5,659

400

12,85812,856

GOOD TIME HOME Fudo-mae

16,856

3,061

600

1,935

182

10,677400

44,821

46,566

Bonsejour Yotsugi

4,933

949

223

-

73

3,286

400

20,71820,660

Medical Home Bonsejour Itami

6,531

1,388

371

-

111

4,260

400

13,951

13,949

Kobe Gakuentoshi Building (Hapine Kobe
Gakuentoshi)

53,775

9,568

900

1,184

579

41,142400

113,767

114,648

GreenLife Moriguchi

43,543

6,999

1,363

6,344

379

28,056400

104,512

107,636

Hapine Kobe Uozaki Nibankan

9,579

1,393

1,200

-

90

6,495

400

24,41624,294Granda Tsuruma-Yamato

7,262

1,934

618

-

152

4,158

400

27,06527,144

Smiling Home Medice Adachi

16,011

3,327

540

-

177

11,567400

60,76356,571AIKOEN ICHIBANKAN Building

11,338

2,551

780

2,850

112

4,644

400

18,11020,564

Hanakotoba Minami

8,680

1,541

600

799

79

5,260

400

27,18026,265

Hanakotoba Miura

10,347

1,553

600

1,380

88

6,325

400

16,377

16,766

SOMPO CARE La vie Re Hama-Kawasaki

19,714

3,463

2,770

480

206

12,393400

45,03045,396

SOMPO CARE La vie Re Azamino

Not disclosed (Note 1)

50

Ⅵ Appendix

Status of Income/Expenditure of Properties②
Real estate lease businessrevenue
Property nameRent
revenue(Unit: thousand yen)

Real estate lease business expenses

Otherrevenue

Propertytax

Outsourcing

Repairexpenses

Depreciation
Insurance
andexpenses
amortization

16th FPNOI
Other(Note 2)

15th FPNOI(Note 2)

Hanakotoba Shin-Yokohama

18,364

4,412

900

3,859

249

8,543

400

52,09153,024

Hanakotoba Shin-Yokohama II

6,474

2,521

600

800

92

2,061

400

10,398

11,198

Hanakotoba Odawara

9,360

1,388

600

700

99

6,172

400

24,412

24,320

Verde Minowa

27,058

5,242

1,020

-

508

19,887400

56,73756,477

Verde Hotaka

25,692

2,208

1,020

380

249

21,435400

45,84844,600Sunny Life Kita-Shinagawa

10,185

2,798

600

-

119

6,265

401

45,58045,580Sunny Life Kamakura

13,607

2,767

720

889

179

8,650

400

37,942

38,830Nichii Home Nishikokubunji

4,265

1,220

660

50

92

1,842

400

18,714

18,743

SOMPO CARE La vie Re Kobe-ikawadani

10,892

-

750

1,309

189

8,243

400

34,57835,184

SOMPO CARE Sompo no ie Sayama

4,010

-

750

57

103

2,700

400

17,58917,658

8,145

-

1,647

754

180

5,159

402

34,21433,874

8,533

-

300

320

129

7,615

167

26,082

26,403

6,026

-

300

-

101

5,458

166

19,453

19,454

NOAH GARDEN Season Bell12,420

-

720

40

212

11,047400

43,24829,325

Heartland Kawaguchi Meiseien

12,357

-

720

-

223

11,013400

54,03636,607

Granda Minamiurawa

5,923

-

480

277

134

4,831

200

26,97918,462

Madoka Minamiurawa

3,909

-

480

-

107

3,121

200

21,562

14,546

Nichii Home Inage

8,532

-

605

22

176

7,456

271

29,985-

Hanakotoba Oppama

1,995

-

270

-

52

1,490

181

6,743

-

SOMPO CARE Sompo no ie Awajiekimae

27,341

4,902

510

-

298

21,230400

58,346

57,635

SOMPO CARE Sompo no ie
Kobekamisawa

17,151

2,910

510

255

183

12,892400

36,03136,284

NOAH GARDEN CASA RICH

14,748

-

300

-

236

14,044

166

50,07450,074

Niigata Rehabilitation Hospital

27,856

9,654

1,030

-

387

16,285500

78,30878,193

SHIP SENRI BUILDING

80,552

27,640

1,500

-

1,182

49,829400

341,078

341,078

801,972

141,560

36,46631,894

10,417563,645

17,9872,189,281

2,138,860

Royal Kawaguchi
NOAH GARDEN LEGENDNOAH GARDEN L Grace

Total(Note 1)
(Note 2)
(Note 3)Not disclosed

2,427,608(Note 1)

2,417,024

10,583”Real estate lease business revenue,” “rent revenue” and “other revenue” of each property are not disclosed as consent for disclosure has not been obtained from tenants. The total is the sum of amounts received as rent for
the fiscal period under review based on the lease agreements.
“NOI” = Real estate lease business revenue – Real estate lease business expenses + depreciation and amortization
The figure is as of September 27, 2022 as its disposition date.

51

Ⅵ Appendix

Balance Sheet and Income Statement
Balance Sheet(Unit: thousand yen)

Assets15th Fiscal Period
ended July 2022

16th Fiscal Period
ended January 2023

Statement of Income (Unit: thousand yen)

Current assets

1,797,490

2,008,064

Cash and deposits

1,311,232

1,539,878

297,360

272,156

Cash and deposits in trust
Operating accounts receivable

23,74551,052

Consumption taxes receivable

121,812137,266

41,022

－

910

7,709

1,406

－

78,516,016
78,272,804
3,097
240,11444,32428,713
15,61180,357,832

79,197,762
78,788,993
2,771
405,997
37,541
22,97014,57081,243,368

12,020,870

10,208,351

82,36755,678Current portion of long-term loans payable

9,250,000

7,250,000

Short-term loans payable

2,000,000

2,000,000

Prepaid expenses
Derivative receivables
Other
Non-current assets
Property, plant and equipment
Intangible assets
Investments and other assets
Deferred assets
Investment unit issuance costs
Investment corporation bond issuance costs
Total assets

Liabilities

Current liabilities
Operating accounts payable

34,971

103,501

247,646

295,543

913

702

5,456

105,273

Advances received

398,493

397,489

Deposits received

126

162

Derivative liabilities

895－

29,536,057

32,066,763

2,000,000

2,000,000

25,400,000

27,900,000

1,921,309

1,936,482

167,616

167,616

Deferred tax liabilities

11,39347,322Derivatives liabilities

35,216

14,977521
41,556,928

365
42,275,114

Unitholders’ capital

38,812,194

38,880,132

Unitholders' capital, net

37,701,032
1,111,161△11,290△11,290
38,800,904
80,357,832

37,590,306
1,289,825
88,121
88,121
38,968,253
81,243,368

Accounts payable – otherAccrued expenses
Income taxes payable
Consumption taxes payableNon-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in
trust

Other

Total liabilities
Net assets

Surplus
Valuation and translation adjustments
Deferred gains or losses on hedges
Total net assets
Total liabilities and net assets

Operating revenue
Leasing business revenues

15th Fiscal Period
ended July 2022

2,371,156
2,360,228

16th Fiscal Period
ended January 2023

2,632,258
2,417,024

10,928

10,583－
1,105,602

204,649
1,178,377

Expenses related to leasing business

784,089

801,972

Asset management fee

203,435

246,843

Other revenue related to leasing business
Gain on sales of real estate properties

Operating expenses

Asset custody fee
Administrative service fees
Directors’ compensation
Property tax
Other operating expenses

Operating income
Non-operating income
Interest income
Insurance income
Interest on tax refund
Reversal of distribution payable
Other

Non-operating expenses
Interest expenses
Interest expenses on investment corporationbonds
Amortization of investment unit issuancecosts
Amortization of investment corporation bondissuance costs

3,864

4,063

23,40424,293

4,800

5,100

30,62831,16655,37964,9371,265,553
2,048
7
1,566
－
474
－
166,555

1,453,880
1,355
5
254
81
1,000
14
176,148

93,992

101,400

7,800

7,800

5,742

5,742

1,040

1,040

57,9791,101,046
1,101,046

60,164
1,279,087
1,279,087

Income taxes - current

914

703

Income taxes - deferred△2

10

Total income taxes

911

713

1,100,134

1,278,374

Borrowing expenses
Ordinary income
Income before income taxes

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

11,027

11,451

1,111,161

1,289,825

52

Ⅵ Appendix

Information Related to Investment Units
List of Top Unitholders

Status of Unitholders

Ratio of Number of Investment Unitsby Unitholder Type

Other companies
4.2%

Foreigninvestors
15.9%

Individuals, etc,
25.2%

Securities
companies
0.1%

Financial
institutions
0.3%

Total
359,500
units

Securities
companies
3.6%

Ratio of Number of Unitholders
by Unitholder Type
Other companies
1.4%
Foreigninvestors
1.2%

Total
14,986
peopleIndividuals, etc,
97.0%
(Note) Decreased by 322 from the previous fiscal period

Changes in Ratio of Number of Investment Units by
Unitholder Type (most recent 5 fiscal periods)
5.0%
4.2%

49.6%

9.0%
4.9%
5.9%

49.0%

11.1%
5.1%
2.4%

50.8%

8.6%
4.3%
5.7%

90,151

25.1

２

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

59,637

16.6

３

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

14,857

4.1

４

NORTHERN TRUST CO. (AVFC) RE
FIDELITY FUNDS

11,587

3.2

5Morgan Stanley MUFG Securities Co.,
Ltd.

6,333

1.8

6

JP MORGAN CHASE BANK 385781

4,458

1.2

NEC Capital Solutions Limited

4,000

1.1

55.6%

51.1%

SHIP HEALTHCARE HOLDINGS INC.

4,000

1.1

Sumitomo Mitsui Banking Corporation

4,000

1.1

SMBC Nikko Securities Inc.

3,382

0.9

202,405

56.3

Foreigninvestors
Other
companies
Securities
companies

7

Financial
institutions
31.3%

31.2%

30.5%

25.8%

25.2%

Individuals, etc,

10

Total

12th FP(Note)

13th FP

14th FP

15th FPThe ratio of each index is rounded off to the first decimal place.

16th FP

Ownership
ratio
(%)

Custody Bank of Japan, Ltd.
(Trust Account)

15.9%
4.2%
3.6%

Name

１

(Note)

Financial
institutions
51.1%

9.9%

Ranking

Number ofinvestment
units owned(units)53

Ⅵ Appendix

HCM’s Investment Philosophy and Three Features
Three Features

Investment Philosophy

Investment in healthcare facilities for which
demand is expected to grow• Increase in demand due to further advancement of aging
Serve as a conduit between the nursing care andmedical service industries and the capital markets

Develop a portfolio specialized inhealthcare facilities, for which
demand is expected to growPromote the supply of healthcare
facilities as social infrastructuresociety• Upgrades and expansion of healthcare facilities backed bygovernment policy

Strong support from sponsors• Utilization of advanced expertise in “nursing care andmedical service,” “fund management” and “finance” heldby SHIP HEALTHCARE, NEC Capital and SMBC

• Securement of property acquisition opportunities byutilizing extensive networks

We seek to realize a society where
all people can live vibrantly andwith peace of mind••

Stable cash flow in the long term
Conclusion of long-term fixed-rent lease agreementswith credible operators
Proper portfolio management based on strong
relationship with operators

54

Ⅵ Appendix

Overview of Unitholder Special Benefit Plan
With the cooperation of operators, we offer unitholder special benefits.
Company Name

Details of Special BenefitsDiscount initial fee or monthly feeFree trial move-in (two-days and one-night with meals)Discount initial feeFree trial move-in (two-days and one-night with meals)Tour with free lunchDiscount monthly fee for initial monthFree trial move-in (two-days and onenight with meals)Discount initial feeDiscount monthly fee

Proud Life Inc.



Discount initial fee or deposit

Lifecare Design Inc.



Discount initial fee

Nichii Carepalace Company



Discount initial feeTour with free lunchDiscount deposit

Sompo Care Inc.

JAPAN LIFEDESIGN Inc.
GREEN LIFE Co., Ltd.
GREEN LIFE HIGASHI NIHON Co.,Ltd.
Sawayaka Club Co., Ltd.

AS PARTNERS Co., Ltd.

NOAH KONZER Co.,Ltd(Note) The special benefits are for unitholders as of the end of January 2023 and are subject to change in the future.

Tour with free lunchFree trial move-in (four-days andthree-nights)

Tour with free lunch

55

Ⅵ Appendix

Profile of Asset Management Company
Organizational Structure

Profile of the Company

Trade name

Healthcare Asset Management Co., Ltd.

Location

3-3 Kanda-Ogawamachi, Chiyoda-ku, Tokyo

FoundedNovember 28, 2013

Capital stock

150 million yen

CEO

Seiji Yoshioka
SHIP HEALTHCARE HOLDINGS, INC.
NEC Capital Solutions Limited

General Meeting of
Shareholders
Audit & Supervisory
Board Member
Board of Directors

33.3%

Compliance Committee

33.3%

Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Finance and Leasing Company,
Shareholders

Management Committee

LimitedSMBC Nikko Securities Inc.
Yoei Co.,Ltd.
Ginsen Co.,Ltd.
Kobe Tochi Tatemono Co.,Ltd.
Muromachi Building Co.,Ltd.

5.0%

Representative Director

4.8%
4.8%

Internal Audit OfficeCompliance Office

4.7%
4.7%
4.7%
4.7%

Investment
Department

Asset
Management
Department

Healthcare
Business
Promotion
Department

Financial &Administration
Department

Registered as a financial service provider
Director of Kanto Local Finance Bureau (Kinsho) No. 2815
Registration,
license, etc.

License as a building lots and buildings business operator
Governor of Tokyo (2) No. 96339
License as an entrusted agency services for transactions
Minister of Land, Infrastructure, Transport and Tourism No. 85

56

Ⅵ Appendix

Profile of Major Sponsors
SHIP HEALTHCARE HOLDINGS INC.
With a stated mission to “create an environment of people protecting life,”
SHIP HEALTHCARE HOLDINGS, INC. focuses on the five business domains of
medical, health, welfare, nursing care and services. Centering around thepartnership with medical institutions, the entire group companies carry out avariety of nursing care and medical service-related businesses, ranging fromconsultation on reconstruction, development, etc. of hospitals and such tooperation of nursing homes and dispensing pharmacy business.

Headquarters
location

3-20-8 Kasuga, Suita-shi, Osaka

Representative

Chairman: Kunihisa Furukawa
President: Futoshi Ohashi

FoundedAugust 1992

Capital stock

15,553 million yen

Sales514,353 million yen on a consolidated basis(fiscal period ended March 2022)

NEC Capital Solutions Limited

As the NEC Group's comprehensive financial services company, NEC Capital
Solutions Limited delivers finance services such as leasing and installment
payments to a broad customer base. In addition, it offers investments, loans,
and advisory services through funds, etc. in the business domains of“companies,” “credits,” and “assets,” mainly through its subsidiary, RISA
Partners, Inc.

Headquarters
location

2-15-3 Konan, Minato-ku, Tokyo

Representative

President: Masaaki Suganuma

FoundedNovember 1978

Capital stock

3,776 million yen

Sales

230,196 million yen(fiscal period ended March 2022)

Sumitomo Mitsui Banking Corporation

Positioned as the core company of the SMFG, SMBC possesses one of thestrongest sales foundations in Japan as well as the ability to executestrategies quickly, and is capable of providing financial services through its
influential group companies. Furthermore, it boasts one of the strongest
track record in Japan for financing listed real estate investment corporations.

Headquarters
location

1-1-2 Marunouchi, Chiyoda-ku, Tokyo

Representative

President and CEO: Makoto Takashima

Capital stock

1,770,996 million yen

57

Disclaimer
This presentation material contains forward-looking statements including forecasts,
outlooks, goals and plans. These statements are based on the information
available as of the date when this material is prepared (March 17, 2023) andincorporate certain subjective assumptions about uncertain factors that may affectfuture results. Accordingly, these statements are inherently not guarantees of
future performance and actual results may differ materially.
The opinions, outlooks and estimates contained in this material reflect our viewand judgment based on information as of the date when this material is preparedand involve risks and uncertainties.
No guarantee is made as to the accuracy, completeness, appropriateness andvalidity of information contained in this material. It is not promised that
information contained in this material will always be updated.
Contents of this material are subject to change without notice.
This material is not intended as a solicitation for investment. Any investment
decision must be made based on your own judgment and responsibility.

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