This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

(REIT) Financial Report for Fiscal Period Ended January 2022
March 18, 2022

Securities Code:Healthcare & Medical Investment
Corporation (HCM)
3455

Representative:

Yuji Fujise, Executive Director

REIT Securities Issuer

Stock Exchange Listing: Tokyo Stock Exchange
URL: http://www.hcm3455.co.jp/en

Asset Management Company: Healthcare Asset Management Co., Ltd.
Representative:
Seiji Yoshioka, President & CEO
Contact:
Atsumasa Furuya, Head of Financial Management Division
TEL: +81‐3‐5282‐2922
Scheduled date of submission of securities report:
Scheduled date of commencement of distribution payment:

April 27, 2022
April 21, 2022

Preparation of supplementary financial results briefing materials: Yes
Holding of financial results briefing session:
Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen)
1. Status of Management and Assets for Fiscal Period Ended January 2022 (from August 1, 2021, to January 31, 2022)(1) Management Status(% figures are the rate of period‐on‐period increase (decrease))
Fiscal period
Operating revenue
Operating income
Ordinary income
Net income
million yen%
million yen%
million yen%
million yen%
Ended Jan. 2022
2,080
0.4
1,072
(0.6)
913
(0.9)
913
(0.9)
Ended Jul. 2021
2,073
0.7
1,078
1.0
922
1.2
921
1.2
Fiscal period

Net income per unit

Return on equity

yen
2,935
2,962

Ended Jan. 2022
Ended Jul. 2021

%
2.8
2.8

Ratio of ordinary income
to total assets
%
1.3
1.3

Ratio of ordinary income
to operating revenue
%
43.9
44.5

(2) Distributions Status
Distribution
per unit

Distribution
per unit

Total
Total
Distribution
Total
Distribution Ratio ofin excess of distributions distributions distributions
payout distributions(including(excluding(including(excluding
in excess ofearnings per
distribution in
distribution in distribution in excess
distribution in
ratio
to net assets
unit
earnings
of earnings)
excess of earnings) excess of earnings)
excess of earnings)
yen
3,244
3,266

yen
2,936
2,962

Ended Jan. 2022
Ended Jul. 2021

yen
308
304

million yen
1,008
1,015

million yen
913
921

million yen
95
94

%
100.0
100.0

%
2.8
2.8

(Note 1) Total distributions in excess of earnings of 95 million yen (308 yen per unit) for the fiscal period ended January 2022 is distribution reducing unitholders’capital for tax purposes.
Total distributions in excess of earnings of 94 million yen (304 yen per unit) for the fiscal period ended July 2021 is distribution reducing unitholders’capital for tax purposes.
(Note 2) The ratio of decreasing surplus due to execution of distribution in excess of earnings (distribution reducing unitholders’ capital for tax purposes) was
0.003 for the fiscal period ended January 2022 and 0.003 for the fiscal period ended July 2021. The ratio of decreasing surplus is calculated based on
Article 23, Paragraph 1, Item (v) of the Order for Enforcement of the Corporation Tax Act.

(3) Financial Position
Fiscal period
Ended Jan. 2022
Ended Jul. 2021

Total assets
million yen
68,77868,883

Net assets
million yen
32,86732,964‐1‐

Equity ratio
%
47.8
47.9

Net assets per unit
yen
105,681
105,995

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(4) Status of Cash Flows

Ended Jan. 2022

Net cashprovided by (used in) operating
activities
million yen
1,450

Net cashprovided by (used in) investing
activities
million yen(148)

Ended Jul. 2021

1,493

(772)

Fiscal period

Net cashCash and cash equivalents at end
provided by (used in) financingof period
activities
million yen
million yen(1,119)1,784(1,004)1,602

2. Earnings Forecast for the Fiscal Period Ending July 2022 (from February 1, 2022 to July 31, 2022) and Earnings Forecast for the Fiscal
Period Ending January 2023 (from August 1, 2022 to January 31, 2023)(% figures are the rate of period‐on‐period increase (decrease))

Fiscal period

Operating revenue

Ending Jul. 2022
Ending Jan. 2023

million yen
2,371
2,419

Operating income% million yen
14.0
1,259
2.0
1,242

Ordinary income% million yen
17.4
1,093
(1.3)
1,070

Distribution perDistribution inunit (excludingexcess of
distribution inearnings per
excess ofunit
earnings)

Net income% million yen
19.7
1,092
(2.2)
1,069

(Reference) Forecast net income per unit (fiscal period ending July 2022)
Forecast net income per unit (fiscal period ending January 2023)

%
19.7
(2.2)

yen
3,040
2,973

yen
307
313

Distribution
per unit(including
distribution
in excess ofearnings)
yen
3,347
3,286

3,043 yen
2,973 yen

* Other(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement① Changes in accounting policies accompanying amendments to accounting standards, etc.: Yes② Changes in accounting policies other than ①:No③ Changes in accounting estimates:
No④ Retrospective restatement:
No(Note)For details, please refer to "Notes on Changes in Accounting Policies" on page 23.

(2) Total Number of Investment Units Issued and Outstanding① Total number of investment units issued and outstanding (including treasury investment units) at end of period
311,001 units
Fiscal period ended January 2022 311,001 units
Fiscal period ended July 2021
② Number of treasury investment units at end of period
Fiscal period ended January 2022
‐ units(Note)

Fiscal period ended July 2021

‐ units

For the number of investment units serving as the basis for calculation of net income per unit, please see “Notes on Per Unit Information”
on page 32.

* This financial report is exempt from the audit by a certified public accountant or an auditing firm.
* Special noteThis forecast is a future prospect determined by HCM based on information currently available and includes many uncertain factors.
Actual operating revenue, operating income, ordinary income, net income, distribution per unit (excluding distribution in excess ofearnings), distribution in excess of earnings per unit and distribution per unit (including distribution in excess of earnings) are subject
to change due to changes in circumstances. In addition, the forecast is not a guarantee of the amount of distribution and distribution
in excess of earnings. For the assumptions underlying the above forecast, please see “Assumptions Underlying Earnings Forecast for
Fiscal Period Ending July 2022 and Fiscal Period Ending January 2023” on pages 8 and 9.

‐2‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

Table of Contents
1. Management Status ................................................................................................................................................................ 4(1) Management Status ........................................................................................................................................................ 4
2. Financial Statements ............................................................................................................................................................. 14(1) Balance Sheet ................................................................................................................................................................ 14(2) Statement of Income ..................................................................................................................................................... 16(3) Statement of Unitholders' Equity .................................................................................................................................. 17(4) Statement of Cash Distributions .................................................................................................................................... 19(5) Statement of Cash Flows ............................................................................................................................................... 21(6) Notes on the Going Concern Assumption...................................................................................................................... 22(7) Notes on Matters Concerning Significant Accounting Policies....................................................................................... 22(8) Notes on changes in accounting policies ....................................................................................................................... 23(9) Notes on Financial Statements ...................................................................................................................................... 24(10) Changes in Total Number of Investment Units Issued and Outstanding ........................................................................ 35
3. Reference Information .......................................................................................................................................................... 36(1) Information on Prices of Assets Under Management, Etc. ............................................................................................ 36(2) Status of Capital Expenditures ....................................................................................................................................... 51‐3‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
1.

Management Status(1) Management Status① Overview of the Current Fiscal Period(a) Brief History of HCM
Healthcare & Medical Investment Corporation (hereinafter, “HCM”) was established under the Act on Investment Trusts
and Investment Corporations (Act No. 198 of 1951, as amended; hereinafter, the “Investment Trust Act”) with Healthcare
Asset Management Co., Ltd. (hereinafter, the “Asset Management Company” or “HAM”) as the organizer on December 9,
2014. HCM was listed on the Real Estate Investment Trust Securities Market of Tokyo Stock Exchange, Inc. (hereinafter, the“Tokyo Stock Exchange”) on March 19, 2015 (securities code: 3455).
The total number of investment units issued and outstanding as of the end of the fiscal period ended January 2022 (August
1, 2021 to January 31, 2022) (hereinafter, the “14th fiscal period” or the “current fiscal period”) stands at 311,001 units.
(b) Investment Environment and Performancea. Investment Environment
HCM was established against the background of a social situation in which expansion and enhancement of nursing careservices and medical services by healthcare facilities has become an urgent issue at a time when the population that bears
nursing care continues to shrink while aging advances at the fastest rate among developed nations and the number andpercentage of the elderly among the total population is expected to remain on the rise for the time being.
The government has also set a target in “Housing Life Basic Plan (nationwide plan)” to increase the ratio of housing supply
for the elderly to 4% in 2030 from 2.5% in 2018.
HCM invests in and owns healthcare facilities, for which social demand is growing, in a stable manner to promote
appropriate maintenance/management and new supply of such facilities. By doing so, HCM seeks to realize a society
where all people can live vibrantly and with peace of mind, as well as to secure stable income and to achieve steady growthof its portfolio.
b. Performance
During the current fiscal period, HCM made no acquisition or transfer of assets.
As of the end of the current fiscal period, HCM owns 37 properties with a total leasable area of 187,918.74 m2, and theoperational rate stands at 100.0%.
The Japanese economy is expected to remain in a severe situation for some time given the spread of the coronavirus
disease 2019 (COVID‐19). Uncertainty still continues in the real estate market, especially around retail facilities and hotels.
However, COVID‐19 has had no negative impact on the performance of HCM as of the end of the current fiscal period, as
HCM has generally concluded long‐term and fixed‐rent lease agreements with the operators of the healthcare facilities it
owns. Moreover, there has been no rent reduction/exemption or deferment of rent payment with the tenants.
Nevertheless, it is unpredictable whether COVID‐19 will spread further, and close attention must continue to be paid to
how the situation will evolve going forward.
(c) Overview of Financing
HCM upholds stable financial management as its basic policy for securing stable income and maintaining and enhancing
asset value over the medium to long term.
In the current fiscal period, HCM refinanced 7,000 million yen in loans due for repayment on January 31, 2022.
As a result, unitholders’ capital (net) (Note) at the end of the current fiscal period stands at 31,964 million yen, the total
number of investment units issued and outstanding at 311,001 units, and total interest‐bearing liabilities at 33,150 million
yen.

‐4‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(Note) The figure indicates the amount obtained by subtracting deduction from unitholders’ capital from unitholders’ capital. The amount does
not take into account the change in unitholders’ capital in line with the implementation of distribution in excess of earnings of reserve fortemporary difference adjustments.

As of the end of the current fiscal period, the ratio of interest‐bearing liabilities to total assets (hereinafter, “LTV”) is 48.2%.
HCM’s rating as of January 31, 2022 is as follows.
Rating Agency
Rating Category
Japan Credit Rating
Long‐term issuer rating
Agency, Ltd. (JCR)

RatingOutlookA (single‐A)

Positive(d) Overview of Business Performance and Distributions
As a result of the management described above, for the current fiscal period, operating revenue stood at 2,080 million
yen, operating income at 1,072 million yen, ordinary income at 913 million yen and net income at 913 million yen.
In accordance with the cash distribution policy described in Article 36, Paragraph 1 of its Articles of Incorporation, HCM
determines that the amount of distribution shall exceed the amount equivalent to 90% of its distributable profit as
stipulated in Article 67‐15 of the Act on Special Measures Concerning Taxation, and shall be up to its profits as defined in
Article 136, Paragraph 1 of the Investment Trust Act. Following this policy, HCM has decided that it shall distribute
913,098,936 yen as the distribution of earnings, which is roughly the entire amount arrived at after deducting reversal ofreserve for temporary difference adjustments (as defined in Article 2, Paragraph 2, Item (30) of the Calculation Rules for
Investment Corporations) from profits as defined in Article 136, Paragraph 1 of the Investment Trust Act. Accordingly,
distribution of earnings per unit was 2,936 yen.
Furthermore, in accordance with the policy for cash distribution in excess of earnings provided in Article 36, Paragraph 2of its Articles of Incorporation, HCM is to conduct distribution in excess of earnings (return of capital that falls under the
category of distribution reducing unitholders’ capital for tax purpose) in each period on a continuous basis as a rule. During
the current fiscal period, HCM decided to distribute 95,788,308 yen, an amount roughly equivalent to 20% of depreciation
recorded in the current fiscal period, as distribution in excess of earnings. Accordingly, distribution in excess of earnings
per unit (of other distribution in excess of earnings) came to 308 yen.
As a result, distribution per unit came to 3,244 yen.
(Note 1) Distribution in excess of earnings is distributed up to the amount equivalent to 20% of the depreciation recorded in the accounting
period immediately before the accounting period when HCM will pay said distribution, sufficiently taking into consideration the amountof capital expenditure necessary for maintaining and improving the competitiveness of HCM’s assets under management, the financial
position of HCM and other factors.
However, distribution in excess of earnings may be conducted up to an amount lower than the above amount or may not be conductedwhen the implementation of distribution in excess of earnings up to the said amount is judged to be inappropriate based on theeconomic environment surrounding HCM, trends of the real estate market and leasing market, status of HCM’s assets undermanagement and financial conditions.
(Note 2) Under the rules of The Investment Trusts Association, Japan (hereinafter, “The Investment Trusts Association”), closed‐end investment
corporations are allowed to conduct distribution in excess of earnings up to an amount equivalent to 60% of the depreciation recordedon the last day of the accounting period.

② Outlook for the Next Fiscal Period(a) Investment Environment
In Japan, while the number of elderly households is increasing, the population that bears nursing care is on the decline,
and provision of nursing care services and medical services at external facilities for a certain percentage of elderly
households is inevitably needed. The expansion of the supply of healthcare facilities, especially facilities and housing forthe elderly, is required in response to the expanding demand for nursing care and medical services.
While nursing care in the same household is forecast to be more difficult than ever before due to super aging and change
of family structure, new development and expansion of healthcare facilities is required to respond to the growing demand
for nursing care and medical services, and measures to achieve them are being promoted.
‐5‐This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
In “Japan Revitalization Strategy ‐JAPAN is BACK‐“ dated June 14, 2013, the Headquarters for Japan's Economic
Revitalization announced a policy to “enact a guideline concerning acquisition and management of properties including
housing for the elderly to promote the utilization of healthcare REITs in an effort to utilize private funds” as part of urban
development to enable the elderly, etc. to walk and live safely.
Following this policy, the Ministry of Land, Infrastructure, Transport and Tourism enacted the “Guideline Related to theUtilization of Healthcare REITs Targeting Housing for the Elderly, Etc.” on June 27, 2014, and the “Guideline Related to
REITs Targeting Hospital Real Estate” on June 26, 2015, as well as indicated the points to be noted in transactions ofhealthcare facilities such as the positioning of key executives with certain experience. With the enactment of theseguidelines, it is believed that opportunities for operators to utilize healthcare REITs will increase.
In addition, the “Housing Life Basic Plan (nationwide plan)” decided by the cabinet on March 19, 2021, set a performanceindicator, which calls for increasing the ratio of housing for the elderly to the elderly population from 2.5% in 2018 to 4%
in 2030, based on the goal of “formation of communities and building of cities where various generations supporting eachother and the elderly can live with good health and peace of mind.”Note that fiscal 2021 was the year when nursing care fees were revised, as revision occurs once every three years. This
becomes the first revision of nursing care fees since the outbreak of the COVID‐19 pandemic.
Regarding the environment surrounding Medical service‐related facilities, etc., social welfare costs are escalate to increase
alongside Japan’s aging population, and demand for medical and long‐term care services is expected to increase ahead of2025, when the baby boomer generation will be 75 years old or older. Meanwhile, there are significant regional variancesin the growth of the elderly population. To address these issues, studies and actions are underway to establish a regional
comprehensive care system through a review of the medical care system and to realize a regional healthcare vision (Note1).
In Japan, under a regional comprehensive care system, work is underway to build an integrated framework of residences,medical care, nursing care, preventative medicine and lifestyle support suitable for each region so that the elderly cancontinue to live to the end of their lives in the area they are used to in the way they would like, even after they come torequire nursing care.
The government has further classified the functions of beds in medical institutions in line with the conditions of patients,
aiming to provide appropriate medical service to all patients at an appropriate location in order to effectively utilize limited
medical resources, and enacted systemic reforms in healthcare systems, such as establishing guidelines (March 2015) forplanning a community healthcare vision in prefectures. Prefectures have formulated the community healthcare vision forthe purpose of realizing a system encouraging the effective and efficient allocation of resources commensurate with the
medical functions in each of the national government‐designated regions, and providing a higher quality of medical
services in beds appropriate for the condition of patients, from acute to convalescent and chronic phases, for each disease.
The community healthcare vision is designed 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 promotefunctional differentiation and cooperation between hospitals. Presently, prefectural governments and healthcare
professionals are working together via regional healthcare vision councils and other channels to realize this vision.
Furthermore, the number of hospitals across Japan is estimated to be about 8,200. However, some of these were built in
the 1960s and 1970s and do not meet earthquake‐resistance standards amid Japan’s earthquake‐prone environment. The
earthquake resistance rate of hospitals in Japan is only 77.3% as of an FY2020 survey, compared to more than 95% for paid
nursing homes (Note 2) (Note 3). Hospitals are used by an unspecified large number of people every day and can also be
used as a community base in case of a disaster. Earthquake resistance is an urgent issue even from the viewpoint ofstrengthening the national resilience. Therefore, HCM believes that there is a great need among hospitals for funding torebuild or expand their buildings to make them more earthquake resistant.

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This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
In addition to the above, medical corporations are also expected to face needs for capital investment for the enhancement
or conversion of medical functions, including multi‐use development (Note 4) and reconstruction and expansion ofbuildings due to earthquake resistance, M&A‐driven funding procurement and asset sales. Furthermore, HCM believes,hospitals or medical corporations can use real estate investment corporations as a means of liquidating their needs forthe purpose of strengthening financial position, or for a hospital owner’s business succession or inheritance or sale ofhospital real estate.
The market size of hospital real estate in Japan accounts for a majority of the total healthcare facility real estate market,
and the majority of hospital real estate is owned by medical corporations, etc. (Note 5). HCM believes that when hospital
real estate is liquidated, it may become a target for investment by real estate investment corporations.
As described above, HCM believes that, amid the funding needs of medical corporations, opportunities for leveraging realestate investment corporations in hospital real estate will expand further as a method for procuring funds related tohospital management and part of strengthening financial positions.
Therefore, the market for healthcare facilities with a particular emphasis on the keywords “nursing care,” “medical service”
and “health,” which HCM sets as acquisition targets, is believed to further expand in the future.
On the other hand, there are growing concerns about economic deterioration due to the spread of COVID‐19. However,HCM believes that its income will not be impacted immediately, as the healthcare facilities it owns are, as a rule, operated
under long‐term lease agreements with fixed rents, and the operating status by the operators and their financial conditions
are continuously monitored. Nevertheless, it is unpredictable whether COVID‐19 will spread further, and close attention
must be paid to how the situation will evolve going forward.
(Note 1) In the section about reorganization of medical and nursing care functions (future vision) of “Promotion of Home Medical and Nursing
Care" by the project team for promoting home medical and nursing care as published by the Ministry of Health, Labour and Welfare, it
is stated that "a more effective and efficient medical and nursing care service provision system will be built through a role division for
hospital and hospital bed functions according to patient needs and by strengthening cooperation among medical institutions andbetween medical and nursing care services.”(Note 2) According to the Ministry of Health, Labour and Welfare's "Status of Earthquake Resistance of Social Welfare Facilities, Etc. " (releasedon December 25, 2017), the ratio of earthquake‐resistant paid nursing homes is 96.3%.
(Note 3) According to the "Results of the Survey on Seismic Retrofit of Hospitals" (released on July 20, 2021) by the Ministry of Health, Labourand Welfare, the ratio of earthquake‐resistant hospitals is 77.3%, of which the ratio was 93.6% for disaster base hospitals and emergency
medical care centers. Note that in these surveys, hospitals with buildings constructed before 1981 (before the enforcement of the revised
Building Standards Act of 1980) that have not been assessed as resistant to earthquakes are included in calculations as buildings withunknown earthquake resistance.
(Note 4) “Multi‐use development” refers to the development of real estate with multiple functions and uses, such as healthcare facilities thatcombine facilities for the elderly, residences, and medical facilities.
(Note 5) Figures are based on preliminary calculations by KPMG Healthcare Japan Co., Ltd.

(b) Future Management Policy and Challenges to Address
With recognition of the above investment environment, HCM aims to secure stable income and steady growth of theportfolio while seeking to realize a society where all people can live vibrantly and with peace of mind, and manages assets
based on the following policies.
a. Asset management policy for properties owned
Healthcare facilities possess a unique property feature in which not only location or specifications of buildings but also
the operational capability of the operator and management stability have a large impact on their value as real estate.
When HCM acquires a healthcare facility, we aim to secure stable income for the medium to long term by, in principle,
concluding a long‐term lease agreement with fixed rent with the operator that operates the healthcare facility.
HCM conducts due diligence on the business feasibility of facilities, including analyzing the management and financial
conditions of operators, along with real estate due diligence, in order to secure stable revenue over the medium to longterm. We also implement continuous monitoring even after the acquisition.
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This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
b. Property acquisition policy
HCM may utilize the comprehensive capabilities of its sponsors, including professional know‐how and customer base, as
well as first refusal rights provided in the support agreements, based on the support agreements which the AssetManagement Company has concluded with sponsor companies and such.
Furthermore, the Asset Management Company may, for the purpose of making flexible property acquisition, request
sponsors, etc. to temporarily own a property (warehousing) on the premise it be transferred to HCM.
As such, HCM aims to maximize unitholder value over the medium to long term by best utilizing the extensive network
and warehousing function of the sponsors, etc. and works for sustainable growth of the asset size.
c. Financial policy
HCM intends to build a stable financial base with an aim to secure stable income over the medium to long term andmaximize unitholder value, and conducts financing in consideration of the trends in the financial market.
With stable growth of HCM over the long term in mind, equity financing will be carried out flexibly, taking into
consideration a multitude of factors including the timing of the acquisition of newly acquired real estate‐related assets
and the possibility of utilizing the sponsor’s warehousing capabilities, LTV, the timing for the repayment of interest‐bearing
liabilities and the period remaining until repayment, as well as market conditions, while also considering the dilution of
the rights of existing unitholders and the resulting decline, etc. in the trading price of investment units.
As to debt financing, stable and flexible leverage control will be implemented by diversifying repayment dates and setting
the upper limit of LTV at 65% (which may, however, exceed 65% temporarily). In addition, a stable bank formation will beestablished by receiving financial advice from Sumitomo Mitsui Banking Corporation, one of the sponsors, based on thesponsor support agreement concluded between the bank and the Asset Management Company.
(c) Significant Subsequent Eventsa. Acquisition of assets
On January 17, 2022, HCM entered into a purchase agreement for the acquisition of trust beneficiary interests in thefollowing 10 real estate properties ("Assets to Be Acquired (Planned) in the 15th Fiscal Period"), and on February 1, 2022,
HCM acquired SOMPO CARE La vie Re Kobeikawadani, SOMPO CARE Sompo no ie Sayama, Royal Kawaguchi, NOAHGARDEN LEGEND, NOAH GARDEN L Grace and NOAH GARDEN CASA RICH. Acquisition of NOAH GARDEN Season Bell,Heartland Kawaguchi Meiseien, Granda Minamiurawa, and Madoka Minamiurawa is scheduled to be completed on March
30, 2022.

Property number

Paid nursing home‐34
Paid nursing home‐35
Paid nursing home‐36
Paid nursing home‐37
Paid nursing home‐38
Paid nursing home‐39
Paid nursing home‐40
Paid nursing home‐41
Paid nursing home‐42
Serviced housing for theelderly‐3
Total(Note)

Property nameLocation(Planned)
Acquisition price(Note)(millions of yen)

(Planned)
Date ofacquisition

Kobe‐shi, Hyogo

1,288

Feb. 1, 2022

Sakai‐shi, Osaka

600

Feb. 1, 2022

SOMPO CARE La vie Re
Kobeikawadani
SOMPO CARE Sompo no ie
SayamaRoyal Kawaguchi
NOAH GARDEN LEGENDNOAH GARDEN L Grace
NOAH GARDEN Season BellHeartland Kawaguchi Meiseien
Granda Minamiurawa
Madoka Minamiurawa

Kawaguchi‐shi, Saitama
Sapporo‐shi, Hokkaido
Sapporo‐shi, Hokkaido
Sapporo‐shi, Hokkaido
Kawaguchi‐shi, Saitama
Kawaguchi‐shi, Saitama
Kawaguchi‐shi, Saitama

1,260
859
622
1,350
2,000
1,022
822

Feb. 1, 2022
Feb. 1, 2022
Feb. 1, 2022
Mar. 30, 2022
Mar. 30, 2022
Mar. 30, 2022
Mar. 30, 2022

NOAH GARDEN CASA RICH

Sapporo‐shi, Hokkaido

1,619

Feb. 1, 2022

11,442───(Planned) acquisition price does not include acquisition‐related expenses, property tax, city planning tax, consumption tax and local
consumption tax.

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This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
b. Issuance of new investment units
In accordance with the resolutions of the Board of Directors on January 17, 2022, and January 25, 2022, HCM determined
to issue 46,190 new investment units through public offering and 2,309 new investment units via third‐party allotment
with SMBC Nikko Securities Inc. as an allotted party, and to use the proceeds to fund a portion of acquisition for the Assets
to Be Acquired (Planned) in the 15th Fiscal Period. Payment for the new investment units by public offering and third‐
party allotment was completed on February 1, 2022, and March 1, 2022, respectively, with a total payment of 5,843 million
yen. As a result, total unitholders' capital amounted to 38,323 million yen and the total number of investment units issued
and outstanding was 359,500 units.
Issuance of New Investment Units by Public Offering (Primary Offering)Number of new investment units issued: 46,190 units
Issue price (offer price): 124,764 yen per unit

Total issue price (total offer price): 5,762,849,160 yen

Paid‐in amount (issue amount): 120,477 yen per unit

Total paid‐in amount (total issue amount): 5,564,832,630 yen

Payment date

: February 1, 2022 (Tue.)

Issuance of New Investment Units by Third‐Party Allotment
Number of new investment units issued: 2,309 units
Paid‐in amount (issue amount): 120,477 yen per unit

Total paid‐in amount (total issue amount): 278,181,393 yen

Payment date

: March 1, 2022 (Tue.)Allotted party: SMBC Nikko Securities Inc.

c. Borrowing of funds
HCM decided on January 17, 2022, to borrow funds to allocate to a portion of the acquisition and its related expenses for
the Assets to Be Acquired (Planned) in the 15th Fiscal Period. A summary of the borrowings to be made in conjunction
with this decision is as follows.
Type

LenderBorrowingamountInterest rate
(Note 4)

Drawdown
date

Borrowing
methodRepayment
date

Borrowings
based on theindividual term
Base interest rate
loan
Short Sumitomo Mitsui(JBA 3‐month
March 30, agreement as
March 30,
2 billion yen
term Banking Corporation
Japanese yen TIBOR)
2022
of March 28,2023+ 0.25%2022, with thecompany on
the left as alenderBase interest rate
Loan syndicate with
(JBA 3‐month
Borrowings
Sumitomo Mitsui
Japanese yen TIBOR)
based on the January 31,
700 million yen
Banking Corporation as+ 0.35%2026
individual term
an arranger (Note 2)(Note 5)loan
(Note 6)Long
March 30, agreement as
term
2022
of March 28,
Base interest rate2022, with the
Loan syndicate with
(JBA 3‐monthcompany on
Sumitomo Mitsui
Japanese yen TIBOR)
January 31,
2.8 billion yen
the left as a
Banking Corporation as+ 0.55%2028
lenderan arranger (Note 3)(Note 5)(Note 6)

Repayment
methodSecurity

Lump‐sum
repayment on Unsecured
principal
andrepayment unguaranteed
date(Note 1) The borrowing is subject to a number of conditions, including the execution of an agreement relating to the loan that is reasonably
satisfactory to the lenders mentioned above and the satisfaction of all lending preconditions, which are to be separately determined.
(Note 2) The loan syndicate will consist of Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank, Limited.
(Note 3) The loan syndicate will consist of Sumitomo Mitsui Banking Corporation, Resona Bank, Limited, Shinkin Central Bank, The Bank of Fukuoka,Ltd., The Dai‐ichi Life Insurance Company, Limited, The 77 Bank, Ltd., The Gunma Bank, Ltd. and The Bank of Yokohama, Ltd.

‐9‐This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(Note 4) The first interest payment date is April 30, 2022, and subsequent interest payments will be due on the last day of January, April, July andOctober of every year thereafter, as well as on the principal repayment date (whenever the date of interest payment is not a business day,such payment will be made on the next business day; whenever the date of interest payment falls on day of the next month, such payment
will be made on the last business of the current month). For the Japanese yen TIBOR published by the JBA TIBOR Administration, pleaserefer to the JBA TIBOR Administration’s website (https://www.jbatibor.or.jp/english/rate/).
(Note 5) Loan fees and other fees paid to lenders are not included.
(Note 6) The Company plans to enter into an interest rate swap agreement to effectively establish a fixed interest rate. The details of this agreement
will be announced once the interest rate is determined.

‐ 10 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(d) Earnings Forecast Outlook
HCM forecasts the following earnings for the fiscal period ending July 2022 (from February 1, 2022 to July 31, 2022) andthe fiscal period ending January 2023 (from August 1, 2022 to January 31, 2023). For the assumptions underlying thisoutlook, please see “Assumptions Underlying Earnings Forecast for Fiscal Period Ending July 2022 and Fiscal Period Ending
January 2023” below.
For the fiscal period ending July 2022 (from February 1, 2022 to July 31, 2022) and the fiscal period ending January 2023
(from August 1, 2022 to January 31, 2023), it is assumed that there is no change in the fair value of interest rate swaps,
and HCM has no plan to present to conduct distribution in excess of earnings of reserve for temporary difference
adjustments.
Fiscal period ending July 2022 (from February 1, 2022, to July 31, 2022)
Operating revenue

2,371 million yen

Operating income

1,259 million yen

Ordinary income

1,093 million yen

Net income
Distribution per unit
(excluding distribution in excess of earnings)
Distribution in excess of earnings per unit
Distribution per unit
(including distribution in excess of earnings)

1,092 million yen
3,040 yen
307 yen
3,347 yen

Fiscal period ending January 2023 (from August 1, 2022, to January 31, 2023)
Operating revenue

2,419 million yen

Operating income

1,242 million yen

Ordinary income

1,070 million yen

Net income

1,069 million yen

Distribution per unit
(excluding distribution in excess of earnings)

2,973 yen

Distribution in excess of earnings per unit
Distribution per unit
(including distribution in excess of earnings)(Note)

313 yen3,286 yen

Please note that actual operating revenue, operating income, ordinary income, net income, distribution per unit (excluding distribution inexcess of earnings), distribution in excess of earnings per unit and distribution per unit (including distribution in excess of earnings) may
differ from the forecast figures above as a result of discrepancies from assumptions arising due to additional real estate acquisition or salein the future, trends in the real estate market, fluctuation of interest rates and changes in other situations surrounding HCM, among otherfactors. In addition, the forecast is not a guarantee of the amount of distribution or distribution in excess of earnings.

‐ 11 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Assumptions Underlying Earnings Forecast for Fiscal Period Ending July 2022 and Fiscal Period Ending January 2023
Item
Accounting period

Assumptions
・ Fiscal period ending July 2022 (15th FP) (from February 1, 2022, to July 31, 2022) (181 days)
・ Fiscal period ending January 2023 (16th FP) (from August 1, 2022, to January 31, 2023) (184 days)・

Assets undermanagement

・・・Operatingrevenue・・・Operatingexpenses

・

・

・
・
・

Non‐operating
expenses・・

It is assumed that, in addition to the trust beneficiary interests in real estate (43 properties in total) owned
by HCM as of the date of this document (hereinafter, the “Assets Owned”), the trust beneficiary interests
in real estate to be acquired (hereinafter, the “Assets to Be Acquired;” referred to jointly with the Assets
Owned as “Assets Under Management”) will be acquired on March 30, 2022. For details on the Assets to
Be Acquired, please refer to "Notice Concerning Acquisition and Leasing of Assets" published on January
17, 2022.
It is assumed that no changes (acquisition of new properties, disposal of Assets Under Management, etc.)
will occur before the end of the fiscal period ending January 2023, except for the acquisition of Assets to
Be Acquired.
There may actually be changes due to acquisition of new properties, or sale of the Assets Under
Management, etc. in the future.
Lease business revenue from Assets Owned are calculated based on the lease agreements for each of theAssets Under Management effective as of the date of this document, tenant trends, market trends, andother factors. Rental business revenue from Assets to Be Acquired are calculated based on information
provided by the current owners of said assets, lease agreements for each of these assets effective as ofthe date of this document, tenant trends, market trends, and other factors.
It is assumed that there will be no default or non‐payment of rents by tenants.
The main breakdown of expenses related to rent business, the major component of operating expense, isas follows.
Fiscal period ending
Fiscal period ending
July 2022
January 2023
Property tax
143 million yen
143 million yen
Repair expenses
32 million yen
32 million yen
Depreciation
551 million yen
563 million yen
Other expenses related to rent business
62 million yen
63 million yen
Of the expenses related to rent business, which is a major component of operating expense, expenses
other than depreciation is calculated as follows: for Assets Owned, based on historical data and reflecting
factors for change in expenses; for Assets to Be Acquired, based on information provided by current
owners and reflecting factors for change in expenses.
In purchasing and selling real estate in general, property tax and city planning tax are calculated on a pro
rata basis with previous owners and settled at the time of acquisition, but as HCM includes this settlementmoney in acquisition cost, they are not recoded as expenses in the year of acquisition. Accordingly,
property tax and city planning tax of the Assets to Be Acquired in the fiscal period ending July 2022 will
not be recorded as expenses in the fiscal period ending July 2022 and the fiscal period ending January2023, and such for fiscal 2022 will be recorded as expenses from the fiscal period ending July 2023. Notethat the total amount of property taxes and city planning taxes to be included for the Assets to Be Acquiredin the fiscal period ending July 2022 is assumed to be 37 million yen.
For repair expenses, the Asset Management Company records the expenses it deems necessary for each
property in each operating period. However, as repair expenses may increase or decrease, or additional
repair may be required due to unpredictable factors, actual expenses may differ significantly from theforecast.
Depreciation is calculated by using the straight‐line method including ancillary expenses.
The asset management fee paid to the Asset Management Company is assumed to be 202 million yen for
the fiscal period ending July 2022 and 233 million yen for the fiscal period ending January 2023.
Investment unit issuance expenses accompanying the issuance of new investment units are depreciatedevenly over 3 years and are assumed to be 5 million yen for the fiscal period ending July 2022 and 5 million
yen for the fiscal period ending January 2023.
Investment corporation bond issuance costs associated with the issuance of investment corporation bonds
are amortized using the straight‐line method over the period up to redemption, and are assumed to be 1
million yen in the fiscal period ending July 2022 and 1 million yen in the fiscal period ending January 2023.
Interest expenses, interest expenses on investment corporation bonds and other borrowing‐related
expenses are assumed to be 159 million yen for the fiscal period ending July 2022 and 166 million yen for
the fiscal period ending January 2023.

‐ 12 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Item

Assumptions
・Interest‐bearing
liabilities
・
Investment units

Distribution perunit (excluding
distribution inexcess of
earnings)

・

・
・

・

・
Distribution inexcess of earnings
per unit

・

・

・
Other
・

As of the date of this document, the balance of HCM’s interest‐bearing liabilities is 33,150 million yen.
However, in order to fund a portion of the acquisition of the Assets to Be Acquired and related expenses,
HCM has obtained a loan from a qualified institutional investor as defined in Article 2, Paragraph 3, Item
1 of the Financial Instruments and Exchange Act and is presumed to borrow a total of 5,500 million yen on
March 30, 2022, bringing the balance of interest‐bearing liabilities to 38,650 million yen.
The total number of investment units issued and outstanding is assumed to be 359,500 units as of the dateof this document, and it is assumed that there will be no change in the number of investment units due toissuance of new investment units, etc. through to the end of the fiscal period ending January 2023.
Distribution per unit is calculated based on the forecast number of units issued and outstanding at the endof period of 359,500 units for the fiscal period ending July 2022 and for the fiscal period ending January2023.
Distribution per unit (excluding distribution in excess of earnings) is calculated on the premise of the cash
distribution policy provided in the Articles of Incorporation of HCM.
Distribution per unit (excluding distribution in excess of earnings) may vary due to various factors,
including fluctuation in rent revenue accompanying change in Assets Under Management, change intenants, etc. or incurrence of unexpected repairs.
Distribution in excess of earnings per unit is calculated pursuant to the policies provided in the Articles ofIncorporation of HCM, policies provided below, other applicable laws and regulations, rules of self‐
regulatory organizations, etc.The total amount of distribution in excess of earnings is assumed to be 110
million yen for the fiscal period ending July 2022 and 112 million yen for the fiscal period ending January2023.
The total amount of distribution in excess of earnings is distributed up to the amount equivalent to 20%of the depreciation recorded in the accounting period immediately before the accounting period when
HCM will pay said distribution, sufficiently taking into consideration the amount of capital expenditurenecessary for maintaining and improving the competitiveness of HCM’s Assets Under Management andthe financial position of HCM.
However, distribution in excess of earnings may be conducted up to an amount lower than the above
amount or may not be conducted when the implementation of distribution in excess of earnings up to thesaid amount is judged to be inappropriate based on the economic environment surrounding HCM, trendsof the real estate market and leasing market, status of HCM’s assets under management and financial
conditions.
For the fiscal period ending July 2022 and the fiscal period ending January 2023, it is assumed that there
is no loss in the fair value of interest rate swaps, and HCM has no plan at present to conduct distribution
in excess of earnings from the reserve for temporary difference adjustments.
The assumption is that there will be no revision of laws and regulations, tax systems, accounting standards,
securities listing regulations set forth by the Tokyo Stock Exchange, rules of The Investment Trusts
Association, Japan, etc. that will impact the forecast figures above.
The assumption is that there will be no unforeseen serious change in general economic trends, real estatemarket conditions, etc.

‐ 13 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
2.

Financial Statements(1) Balance Sheet(Unit: thousands of yen)
Current fiscal period(As of Jan. 31, 2022)

Previous fiscal period(As of Jul. 31, 2021)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Derivatives receivables
Total current assets
Non‐current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
SoftwareTotal intangible assets
Investments and other assets

1,482,160
207,158
3,042
113,994‐
1,806,355*1

33,266,152(4,163,853)
29,102,298
91,855(12,609)79,245
19,499(6,074)
13,425
259,026(65,260)
193,766
37,482,822
6,270
66,877,828
397
397

Security deposits
Long‐term prepaid expenses
Derivatives receivables
Deferred tax assets
Total investments and other assets
Total non‐current assets
Deferred assets
Investment unit issuance expenses
Investment corporation bond issuance costs
Total deferred assets
Total assets‐ 14 ‐

1,689,721
181,881
2,081
125,4552,778
2,001,918*1

33,351,590(4,617,889)
28,733,700
96,187(14,208)
81,97819,499(7,049)12,450297,717(88,209)
209,508
37,482,822
5,113
66,525,573
198
198

10,00010,000161,246
3,871
13
175,131
67,053,357

193,588
30,514
12
234,115
66,759,887

6,424
17,69324,11768,883,830‐
16,652
16,652
68,778,458

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

Previous fiscal period(As of Jul. 31, 2021)
Liabilities
Current liabilities
Operating accounts payable
Current portion of long‐term loans payable
Accounts payable ‐ otherAccrued expenses
Income taxes payable

79,8277,000,000
121,248
238,140
887(Unit: thousands of yen)
Current fiscal period(As of Jan. 31, 2022)

62,1909,250,000
104,024
240,609866

Accrued consumption taxes

15,496

17,631

Advances received
Deposits received
Derivatives liabilities
Total current liabilities
Non‐current liabilities
Investment corporation bonds
Long‐term loans payable341,362126‐
7,797,089

338,838795
1,705
10,016,661

2,000,000
24,150,000

2,000,000
21,900,000

Tenant leasehold and security deposits

1,865,509

1,865,509

Tenant leasehold and security deposits in trust
Deferred tax liabilities
Derivatives liabilities
Total non‐current liabilities

86,766
1,217
18,45328,121,947

86,766
10,47331,99725,894,748

35,919,037

35,911,409

32,480,785

32,480,785

Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders' capital
Reserve for temporary difference
adjustments
Other deduction from unitholders' capital
Total deduction from unitholders' capital
Unitholders' capital, net*3

Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets‐ 15 ‐(61,448)*3(15,501)(421,848)(483,296)
31,997,489(516,392)(531,894)
31,948,891

983,103

929,041

983,103
32,980,592

929,041
32,877,933(15,799)(15,799)*2 32,964,792
68,883,830(10,884)(10,884)*2 32,867,048
68,778,458

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(2) Statement of Income(Unit: thousands of yen)Previous fiscal period
From: Feb. 1, 2021
To: Jul. 31, 2021
Operating revenue
Revenue related to rent business
Other revenue related to rent businessTotal operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Property tax
Other operating expenses
Total operating expenses
Operating income
Non‐operating income
Interest income
Insurance income
Reversal of distribution payable
Total non‐operating income
Non‐operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment unit issuance expenses
Amortization of investment corporation bond issuance
costs
Borrowing expenses
Total non‐operating expenses
Ordinary income
Income before income taxes
Income taxes ‐ current
Income taxes ‐ deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)*1

2,062,148
10,8892,073,038*1

690,998
197,621
3,432
21,461
4,800
27,787
48,380994,481
1,078,556*1‐ 16 ‐

Current fiscal period
From: Aug. 1, 2021
To: Jan. 31, 2022
*1

2,069,514
10,9212,080,436*1

701,277
200,330
3,430
21,551
4,800
28,45748,051
1,007,899
1,072,537

*1

8
762
584
1,356

6
‐
463
469

86,6007,800
6,424

88,014
7,800
6,424

1,040

1,040

55,955
157,821922,091922,091888
0
889
921,201
61,901
983,10355,789159,068
913,938
913,938867
1
868
913,069
15,971
929,041This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(3) Statement of Unitholders' Equity
Previous fiscal period (from February 1, 2021, to July 31, 2021)(Unit: thousands of yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders' capital
Unitholders’capitalBalance at beginning ofcurrent period
Changes of items during
periodReserve fortemporarydifference
adjustments

32,480,785

Other deduction Total deduction
from unitholders' from unitholders'
capitalcapital(47,142)(328,547)

Unitholders'
capital, net(375,690)

32,105,095(14,306)(14,306)(93,300)(93,300)(93,300)

Dividends of surplus
Distribution in excess ofearnings from reserve
for temporary
difference adjustments
Other distribution inexcess of earnings(14,306)

Net income
Changes of items otherthan unitholders’ equity
during period, net
Total changes of items
during the period
Balance at end of current
period*1‐(14,306)(93,300)(107,606)(107,606)

32,480,785(61,448)(421,848)(483,296)

31,997,489(Unit: thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus

Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus

Changes of items otherthan unitholders’ equity
during period, net
Total changes of items
during the period
Balance at end of current
periodTotal net assets

Total surplus

957,584

957,584

33,062,679(895,682)(895,682)(895,682)(895,682)(14,306)(14,306)(93,300)(93,300)

921,201

921,201

Distribution in excess ofearnings from reserve
for temporary
difference adjustments
Other distribution inexcess of earnings
Net income

Total valuation
Total unitholders’ Deferred gains or
and translation
equitylosses on hedges
adjustments

Unappropriatedretained earnings(undisposed loss)

921,201

921,201(61,746)(61,746)

33,000,933

45,94645,94645,94625,51925,519(82,087)

45,94645,946(36,140)

983,103

983,103

32,980,592(15,799)(15,799)

32,964,792‐ 17 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Current fiscal period (from August 1, 2021, to January 31, 2022)(Unit: thousands of yen)
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders' capital
Unitholders’capitalBalance at beginning ofcurrent period
Changes of items during
periodReserve fortemporarydifference
adjustments

32,480,785(61,448)

Other deduction Total deduction
from
from
unitholders'unitholders'
capitalcapital(421,848)

Unitholders'
capital, net(483,296)

31,997,489

45,94645,946(94,544)(94,544)(94,544)

Dividends of surplus
Reversal of reserve fortemporary difference
adjustments
Other distribution inexcess of earnings

45,946

Net income
Changes of items otherthan unitholders’ equity
during period, net
Total changes of items
during the period
Balance at end of current
period*1‐

45,946(94,544)(48,597)(48,597)

32,480,785(15,501)(516,392)(531,894)

31,948,891(Unit: thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus

Balance at beginning ofcurrent period
Changes of items during
periodDividends of surplus
Reversal of reserve fortemporary difference
adjustments
Other distribution inexcess of earnings
Net income
Changes of items otherthan unitholders’ equity
during period, net
Total changes of items
during the period
Balance at end of current
periodUnappropriatedretainedearnings(undisposed
loss)

Deferred gains
or losses onhedgesTotal valuationand translation
adjustments

Total net assets

Total surplus

Totalunitholders’equity983,103

983,103

32,980,592(15,799)(15,799)

32,964,792(921,184)(921,184)(921,184)(921,184)(45,946)(45,946)‐‐(94,544)(94,544)913,069

913,069

913,069

913,069

4,915

4,915

4,915

(54,061)(54,061)(102,659)

4,915

4,915

(97,743)

929,041

929,041

32,877,933(10,884)(10,884)

32,867,048‐ 18 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(4) Statement of Cash Distributions(Unit: yen)
Type
I.

Previous fiscal period
From: Feb. 1, 2021
To: Jul. 31, 2021

Current fiscal period
From: Aug. 1, 2021
To: Jan. 31, 2022

Unappropriated retained earnings

983,103,252

929,041,635

II. Distribution in excess of earnings

94,544,304

95,788,308

94,544,304

95,788,308

45,946,358

4,915,566

45,946,358

4,915,566

1,015,729,266[3,266]921,184,962[2,962]

1,008,887,244[3,244]
913,098,936[2,936]

94,544,304

95,788,308

[304]

[308]

15,971,932

11,027,133

Of which, other deduction from unitholders’capitalIII. Incorporation into unitholders’ capital
Of which, reversal of reserve for temporary
difference adjustments
IV. Amount of distributions[Distributions per unit]
Of which, distributions of earnings(Of which, distributions of earnings per unit)
Of which, other distributions in excess ofearnings(Of which, distribution in excess of earnings
per unit (for other distributions in excess ofearnings))
V.

Retained earnings carried forward

Method of calculation of amount of distributions

In accordance with the cash
distribution policy described in Article
36, Paragraph 1 of its Articles ofIncorporation, HCM determines thatthe amount of distribution shallexceed the amount equivalent to 90%
of its distributable profit as stipulated
in Article 67‐15 of the Act on Special
Measures Concerning Taxation, andshall be up to its profits as defined in
Article 136, Paragraph 1 of theInvestment Trust Act. Following thispolicy, HCM has decided that it shall
distribute 921,184,962 yen as the
distribution of earnings, which isroughly the entire amount arrived atafter deducting the reversal of reserve
for temporary difference adjustments(as defined in Article 2, Paragraph 2,
Item (30) of the Calculation Rules for
Investment Corporations) from profits
as defined in Article 136, Paragraph 1of the Investment Trust Act.
Accordingly, distribution of earnings
per unit was 2,962 yen.
Furthermore, in accordance with thepolicy for cash distribution in excess ofearnings provided in Article 36,
Paragraph 2 of its Articles ofIncorporation, HCM is to conduct
distribution in excess of earnings(return of capital that falls under the
category of distribution reducing
unitholders’ capital for tax purpose) in
each period on a continuous basis.
During the current fiscal period, HCM
has decided to distribute‐ 19 ‐In accordance with the cash
distribution policy described in Article
36, Paragraph 1 of its Articles ofIncorporation, HCM determines thatthe amount of distribution shallexceed the amount equivalent to 90%
of its distributable profit as stipulated
in Article 67‐15 of the Act on Special
Measures Concerning Taxation, andshall be up to its profits as defined in
Article 136, Paragraph 1 of theInvestment Trust Act. Following thispolicy, HCM has decided that it shall
distribute 913,098,936 yen as the
distribution of earnings, which isroughly the entire amount arrived atafter deducting the reversal of reserve
for temporary difference adjustments(as defined in Article 2, Paragraph 2,
Item (30) of the Calculation Rules for
Investment Corporations) from profits
as defined in Article 136, Paragraph 1of the Investment Trust Act.
Accordingly, distribution of earnings
per unit was 2,936 yen.
Furthermore, in accordance with thepolicy for cash distribution in excess ofearnings provided in Article 36,
Paragraph 2 of its Articles ofIncorporation, HCM is to conduct
distribution in excess of earnings(return of capital that falls under the
category of distribution reducing
unitholders’ capital for tax purpose) in
each period on a continuous basis.
During the current fiscal period, HCM
has decided to distributeThis translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

Type

Previous fiscal period
From: Feb. 1, 2021
To: Jul. 31, 2021

Current fiscal period
From: Aug. 1, 2021
To: Jan. 31, 2022

Method of calculation of amount of distributions

94,544,304 yen, an amount roughly
equivalent to 20% of depreciation
recorded in the current fiscal period,
as distribution in excess of earnings. As
a result, distribution in excess ofearnings per unit (of other distribution
in excess of earnings) came to 304 yen.
As a result, distribution per unit came
to 3,266 yen.

95,788,308 yen, an amount roughly
equivalent to 20% of depreciation
recorded in the current fiscal period,
as distribution in excess of earnings. As
a result, distribution in excess ofearnings per unit (of other distribution
in excess of earnings) came to 308 yen.
As a result, distribution per unit came
to 3,244 yen.

(Note 1)

Distribution in excess of earnings is distributed up to the amount equivalent to 20% of the depreciation recorded in the accounting period
immediately before the accounting period when HCM will pay said distribution, sufficiently taking into consideration the amount of capital
expenditure necessary for maintaining and improving the competitiveness of HCM’s assets under management, the financial position of HCM
and other factors.
However, distribution in excess of earnings may be conducted up to an amount lower than the above amount or may not be conducted when
the implementation of distribution in excess of earnings up to the said amount is judged to be inappropriate based on the economic
environment surrounding HCM, trends of the real estate market and leasing market, status of HCM’s assets under management and financial
conditions.

(Note 2)

Under the rules of The Investment Trusts Association, closed‐end investment corporations are allowed to conduct distribution in excess ofearnings up to an amount equivalent to 60% of the depreciation recorded on the last day of the accounting period.

‐ 20 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(5) Statement of Cash Flows(Unit: thousands of yen)Previous fiscal period
From: Feb. 1, 2021
To: Jul. 31, 2021
Net cash provided by (used in) operating activities
Income before income taxes
Depreciation
Amortization of investment corporation bond issuance
costs
Borrowing expenses
Amortization of investment unit issuance expenses
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses

Current fiscal period
From: Aug. 1, 2021
To: Jan. 31, 2022

922,091
474,103

913,938
479,758

1,040

1,040

55,9556,424(8)94,400(3,042(1,784)55,7896,424(6)95,814960(302)

Increase (decrease) in operating accounts payable

29,450(17,637)

Increase (decrease) in accounts payable ‐ other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease (increase) in long‐term prepaid expenses
Increase (decrease) in deposits received
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Proceeds from tenant leasehold and security deposits
Cash flows from investing activities
Cash flows from financing activities
Proceeds from long‐term loans payable
Repayments of long‐term loans payable(6,607)
7,526(2,698)
5,480
7,309
‐
(635)
1,589,005
8(94,879)(908)
1,493,226

4,228
2,135
2,969
(2,524)
4,458
668
(463)
1,547,252
6(96,314)(888)
1,450,055(832,014)
60,000(772,014)(148,208)‐(148,208)‐‐

7,000,000(7,000,000)(1,598)(103,748)(1,003,300)(1,004,898)(283,687)
1,886,239(1,015,814)(1,119,562)
182,284
1,602,552*1 1,602,552*1 1,784,836

Borrowing expenses
Dividends paid
Cash flows from financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period‐ 21 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(6) Notes on the Going Concern Assumption
Not applicable.
(7) Notes on Matters Concerning Significant Accounting Policies
1. Method of depreciation of non‐ (1) Property, plant and equipment
The straight‐line method is adopted.
current assets
The useful life of principal property, plant and equipment is as follows.
Buildings in trust
5‐69 years
Structures in trust
10‐53 years
Machinery and equipment in trust
10 years
Tools, furniture and fixtures in trust
6‐15 years(2) Intangible assets
The straight‐line method is adopted.
2. Accounting for deferred assets (1) Investment unit issuance expenses
Depreciated evenly over 3 years.
(2) Investment corporation bond issuance costs
Amortized using the straight‐line method over the period up to redemption.
(1) Accounting for property taxes
3. Standards for revenue andFor property tax, city planning tax, depreciable asset tax, etc. on real estate, etc. owned,
expense recognition
the accounting is that, of the tax amount assessed and determined, the amountcorresponding to the concerned accounting period is expensed as expenses related torent business.
In connection with the acquisition of real estate including trust beneficiary interests inreal estate, the amount equivalent to real property tax, etc. for the initial fiscal year,
which was settled with the seller, is not recorded as expenses but included in the costof acquisition of the concerned real estate, etc.The amount equivalent to property tax,
etc. included in the cost of acquisition of real estate, etc. was 1,825 thousand yen forthe previous fiscal period and none for the current fiscal period.
(2) Standards for revenue recognition
The following is a description of the major performance obligations related to revenue
arising from contracts with HCM customers and the normal point in time at which such
performance obligations are satisfied (the normal point in time at which revenue isrecognized).
Sale of real estate, etc.
Revenue from sale of real estate, etc. is recognized when the customer, who is the buyer,
obtains control of the real estate, etc. by HCM’s fulfillment of the delivery obligations
stipulated in the contract for the sale of real estate, etc.
(1) Hedge accounting approach
4. Hedge accounting approach
Deferred hedge accounting. Special treatment is applied for interest rate swap
transactions that satisfy the requirements for special treatment.
(2) Hedging instruments and hedge items
Hedging instrument: Interest rate swap transactions
Hedge items: Interest on loans(3) Hedging policy
HCM conducts interest rate swap transactions for hedging risks provided in its Articles
of Incorporation, pursuant to the risk management basic policy.
(4) Method of assessing hedge effectivenessHedge effectiveness is assessed by comparing the cumulative fluctuation of cash flows
for hedging instruments and the cumulative fluctuation of cash flows for hedge items
and confirming the ratio of both fluctuations. However, hedge effectiveness assessment
is omitted for interest rate swap transactions that satisfy the requirements for special
treatment.
5. Cash and cash equivalents as
Cash and cash equivalents in the statement of cash flows comprise cash on hand and cash
stated in the statement of cashin trust, demand deposits and deposits in trust, and short‐term investments with a maturity
flowsof three months or less from the date of acquisition that are readily convertible to cash andthat are subject to an insignificant risk of changes in value.

‐ 22 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
6. Other significant matters serving
as the basis for preparation offinancial statements(1) Accounting for trust beneficiary interests in real estate, etc.
Concerning trust beneficiary interests in real estate, etc. owned, all accounts of assets
and liabilities within trust assets as well as all accounts of revenue and expenses fromthe trust assets are recognized in the relevant account item of the balance sheet andthe statement of income.
The following material items for the trust assets recognized in the relevant account item
are separately listed on the balance sheet.
① Cash and deposits in trust② Buildings in trust; structures in trust; machinery and equipment in trust; tools,
furniture and fixtures in trust; land in trust; Construction in progress in trust③ Tenant leasehold and security deposits in trust(2) Accounting for consumption tax, etc.
Consumption tax and local consumption tax are excluded from transaction amounts.
Non‐deductible consumption taxes on acquisition of assets is included in the cost of
acquisition of each asset.

[Additional Information][Notes on Reserve and Reversal of Reserve for Temporary Difference Adjustments]
Previous fiscal period (from February 1, 2021, to July 31, 2021)
1. Reasons, related assets and amounts of reversal
Due to the decrease of deferred losses on hedges of 45,946 thousand yen by statement of cash distributions from assessmentof fair value of interest rate swap transactions to which hedge accounting is applied, 45,946 thousand yen of reserve fortemporary difference adjustments for elimination of the amount is reversed.
2. Method of reversal
In accordance with elimination of deferred losses on hedges (net asset deduction items) by period‐end reassessment of saidinterest rate swap transactions in the next period onward, a corresponding amount of reserve for temporary difference
adjustments will be reversed.
Current fiscal period (from August 1, 2021, to January 31, 2022)
1. Reasons, related assets and amounts of reversal
Due to the decrease of deferred losses on hedges of 4,915 thousand yen by statement of cash distributions from assessmentof fair value of interest rate swap transactions to which hedge accounting is applied, 4,915 thousand yen of reserve fortemporary difference adjustments for elimination of the amount is reversed.
2. Method of reversal
In accordance with elimination of deferred losses on hedges (net asset deduction items) by period‐end reassessment of saidinterest rate swap transactions in the next period onward, a corresponding amount of reserve for temporary difference
adjustments will be reversed.
(8) Notes on Changes in Accounting Policies
1. Application of the Accounting Standard for Revenue Recognition
The Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31, 2020) has been applied from the
beginning of the current fiscal period. As a result, when control of the promised goods or services is transferred to the customer,
revenue is to be recognized at the amount expected to be received in exchange for those goods or services. The effect of thischange on the financial statements is immaterial.
In accordance with the transitional treatment stipulated in Paragraph 89‐3 of the Accounting Standard for Revenue Recognition,notes related to revenue recognition for the previous period are not presented.
2. Application of Accounting Standard for Fair Value Measurement
The Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019) has been applied from the beginningof the current fiscal period. In accordance with the transitional treatment prescribed in Paragraph 19 of the Accounting Standard
for Fair Value Measurement and Paragraph 44‐2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10,
July 4, 2019), the new accounting policy prescribed by the Accounting Standard for Fair Value Measurement will be applied
going forward. The effect of this change on the financial statements is immaterial.
‐ 23 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(9) Notes on Financial Statements[Notes on Balance Sheet]*1 Reduction entry amount of property, plant and equipment received as governmental subsidy, etc.
(Unit: thousands of yen)Previous fiscal period(As of Jul. 31, 2021)
Buildings in trust

Current fiscal period(As of Jan. 31, 2022)

10,041

10,041*2 Minimum net assets as provided in Article 67, Paragraph 4 of the Investment Trust Act(Unit: thousands of yen)Previous fiscal period(As of Jul. 31, 2021)

Current fiscal period(As of Jan. 31, 2022)

50,00050,000*3 Reserve for temporary difference adjustments
Previous fiscal period (from February 1, 2021, to July 31, 2021)
1. Reasons, related assets and amounts of reserve(Unit: thousands of yen)
Related assets, etc.
Deferred gains orlosses on hedges

ReasonInitialamountBalance at Reserved Reversed Balance at
end ofbeginning amount in amount incurrentof current current
current
periodperiodperiodperiodValuation loss oninterest rate swap

25,68347,142

14,306―61,448―25,68347,142

14,306―61,448―

Total

Reason forreversal

2. Method of reversal(1) Deferred gains or losses on hedges
Reversal is planned to be made in accordance with the change in fair value of derivative transactions, which are hedge
instruments.
Current fiscal period (from August 1, 2021, to January 31, 2022)
1. Reasons, related assets and amounts of reserve/reversal(Unit: thousands of yen)
Related assets, etc.

Deferred gains orlosses on hedges

ReasonValuation loss oninterest rate swap
Total

InitialamountBalance at Reserved Reversed Balance at
beginning amount in amount in
end ofof current current
current
current
periodperiodperiodperiod25,68361,448―(45,946)

15,501

25,68361,448―(45,946)

15,501

Reason forreversal
Changes infair value ofderivativetransactions―

2. Method of reversal(1) Deferred gains or losses on hedges
Reversal is planned to be made in accordance with the change in fair value of derivative transactions, which are hedge
instruments.

‐ 24 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
[Notes on Statement of Income]*1 Breakdown of operating income (loss) from real estate leasing(Unit: thousands of yen)Previous fiscal period
From: Feb. 1, 2021
To: Jul. 31, 2021
Operating revenue from real estateleasing
Revenue related to rent business
Rent revenue
Other revenue related to rent business
Other revenue
Total operating revenue from real estateleasing
B. Operating expenses from real estateleasing
Expenses related to rent business
Property tax
Outsourcing expenses
Repair expenses
Insurance expenses

Current fiscal period
From: Aug. 1, 2021
To: Jan. 31, 2022

A.

Depreciation
Other expenses related to rent businessTotal operating expenses from real estateleasing
C. Operating income (loss) from realestate leasing [A‐B]

2,062,148

2,069,514

10,88910,921

2,073,038

2,080,436

142,218
28,893
22,5798,622

142,184
29,283
26,664
8,683

473,904
14,778479,559
14,903690,998

701,277

1,382,040

1,379,159[Notes on Statement of Unitholders’ Equity]*1

Total number of investment units authorized and total number of investment units issued and outstanding
Previous fiscal period
From: Feb. 1, 2021
To: Jul. 31, 2021

Total number of investment units
authorized
Total number of investment units
issued and outstanding

Current fiscal period
From: Aug. 1, 2021
To: Jan. 31, 2022

10,000,000 units

10,000,000 units

311,001 units

311,001 units[Notes on Statement of Cash Flows]*1 Reconciliation of cash and cash equivalents at end of period to the amount of balance sheet items(Unit: thousands of yen)Previous fiscal period
From: Feb. 1, 2021
To: Jul. 31, 2021

Current fiscal period
From: Aug. 1, 2021
To: Jan. 31, 2022

Cash and deposits
Cash and deposits in trust
Restricted deposits in trust (Note)

1,482,160
207,158(86,766)

1,689,721
181,881(86,766)

Cash and cash equivalents

1,602,552

1,784,836(Note)

Restricted deposits in trust refer to deposits in trust reserved for refund of leasehold received from tenants, etc.

‐ 25 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
[Notes on Operating Lease Transactions]Non‐cancellable operating leases (as lessor)(Unit: thousands of yen)Previous fiscal period
As of Jul. 31, 2021

Current fiscal period
As of Jan. 31, 2022

Not later than 1 year
Later than 1 year

3,106,350
10,166,481

2,771,384
8,910,935

Total

13,272,832

11,682,320[Notes on Financial Instruments]
1. Matters concerning status of financial instruments(1) Policy for handling financial instruments
Pursuant to the policy of conducting stable and sound financial management, HCM raises funds for asset acquisition,
repayment of loans, etc. by means of loans from banks, issuance of investment corporation bonds or issuance of new
investment units, etc. As to finance by loans and issuance of investment corporation bonds, HCM pays attention toextending periods, fixing interest rates, diversifying repayment dates and such to secure financial stability and avoid therisk of rise in interest rates in the future.
Derivative transactions shall be limited to those invested for the purpose of hedging the risk of fluctuations in interest
rates on HCM’s loans.
(2) Description of financial instruments and associated risks, and risk management system
Loans and proceeds from issuance of investment corporation bonds are used primarily for acquisition of trust
beneficiary interests in real estate and repayment of debts.
Although loans and investment corporation bonds are exposed to liquidity risks on the repayment or redemption date,the impact of rising market interest rates on the management of HCM is limited through appropriate management of
the ratio of interest‐bearing liabilities, and such risks are controlled through diversification of repayment andredemption dates.
Although loans with floating interest rates are exposed to interest rate fluctuation risks, the ratios of loan balances withfloating rates and fixed rates against the entire loans are adjusted according to the financing environment. Furthermore,derivative transactions (interest rate swap transactions) have been used for part of loans with floating rates to avoid
interest fluctuation risks and to fix interest payment. Execution/management of derivative transactions carried out forthe purpose of hedging interest rate fluctuation risks is conducted pursuant to provisions that stipulate the basic policyof risk management.
Although tenant leasehold and security deposits as well as tenant leasehold and security deposits in trust are deposits
from tenants and are exposed to liquidity risks at the time of refunding upon tenants’ move‐outs, HCM controls liquidity
risks by securing liquidity at hand to a certain degree and other measures.
For deposits, such risks are controlled by setting lower limits to the credit rating of financial institutions at which deposits
are made (excluding deposits for settlement), etc.
(3) Supplementary explanation to matters concerning fair value, etc. of financial instruments
Certain assumptions are adopted in the calculation of the fair value of financial instruments Accordingly, there may becases where the concerned values will differ when different assumptions are adopted.
2.

Matters concerning fair value, etc. of financial instruments
Carrying amount, fair value and difference between the two were as follows. Notes to "Cash and deposits" and "Cash anddeposits in trust" are omitted because their fair values approximates their book values. This is due to their nature as cash
and as accounts settled over the short term. In addition, "Tenant leasehold and security deposits," "Tenant leasehold andsecurity deposits in trust," "Accounts payable ‐ other," "Operating accounts payable," "Accrued expenses," "Security
deposits," and "Operating accounts receivable" are immaterial, so notes are omitted.

‐ 26 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Previous fiscal period (from February 1, 2021, to July 31, 2021)(Unit: thousands of yen)
Carrying amount

Fair value

Amount of difference(1) Current portion of long‐term loans payable

7,000,000

7,006,414

6,414(2) Investment corporation bonds

2,000,000

2,006,000

6,000(3) Long‐term loans payable

24,150,000

24,149,543(456)

33,150,000

33,161,957

11,957(14,581)(14,581)―

Total liabilities(4) Derivatives transactions

Current fiscal period (from August 1, 2021, to January 31, 2022)(Unit: thousands of yen)
Carrying amount

Fair value

Amount of difference(1) Current portion of long‐term loans payable

9,250,000

9,249,951(48)(2) Investment corporation bonds

2,000,000

1,993,800(6,200)(3) Long‐term loans payable

21,900,000

21,895,362(4,637)33,150,000

33,139,114(10,885)

(410)

(410)

―

Total liabilities(4) Derivatives transactions(Note 1) Method of calculation of the fair value of financial instruments and matters concerning derivative transactions(1) Current portion of long‐term loans payable; (3) Long‐term loans payable
For those with floating interest rates that reflect market interest rates within a short period of time, the book value is deemed a reasonableapproximation of the fair value as there are no significant changes in HCM’s credit standing after borrowing; therefore, the book value is usedas the fair value equivalent. Those with fixed interest rates are calculated by discounting the sum of principal and interest (*) at a reasonable
rate estimated for a similar loan that is made corresponding to the remaining period.
(*) For long‐term loans with floating interest rate to which special treatment for interest rate swaps is applied (please refer to “Derivative
Transactions” below), the sum of principal and interest under the interest rates after the interest rate swaps are indicated.
(2) Investment corporation bonds
Figures are calculated based on the reference statistics of transactions provided by Japan Securities Dealers Association.
(4) Derivative transactions
Please refer to “Notes on Derivative Transactions” below.
(Note 2) Amount of repayment of loans and other interest‐bearing liabilities scheduled to be due after the account closing datePrevious fiscal period (As of July 31, 2021)
Not later than
1 year(Unit: thousands of yen)
Later than 1 year Later than 2 years Later than 3 years Later than 4 years
Later thanand not later than and not later than and not later than and not later than
5 years
2 years
3 years
4 years
5 years

Investment
corporationbonds
Long‐term loans
payable

―

―

―

―

―

2,000,000

7,000,000

9,250,000

7,250,000

4,450,000

3,200,000

―

Total

7,000,000

9,250,000

7,250,000

4,450,000

3,200,000

2,000,000‐ 27 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Current fiscal period (As of January 31, 2022)

Not later than
1 year(Unit: thousands of yen)
Later than 1 year Later than 2 years Later than 3 years Later than 4 years
Later thanand not later than and not later than and not later than and not later than
5 years
2 years
3 years
4 years
5 years

Investment
corporationbonds
Long‐term loans
payable

―

―

―

―

―

2,000,000

9,250,000

7,250,000

5,550,000

3,200,000

5,900,000

―

Total

9,250,000

7,250,000

5,550,000

3,200,000

5,900,000

2,000,000[Notes on Securities]
Previous fiscal period (As of July 31, 2021)
Not applicable.
Current fiscal period (As of January 31, 2022)
Not applicable.
[Notes on Derivative Transactions]
1. Derivative transactions to which hedge accounting is not applied
Previous fiscal period (As of July 31, 2021)
Not applicable.
Current fiscal period (As of January 31, 2022)
Not applicable.
2. Derivative transactions to which hedge accounting is applied
The following table shows the contracted amount or principal amount equivalent or the like set forth in the contract as of
the balance sheet date for each hedge accounting method.
Previous fiscal period (As of July 31, 2021)
Hedge
accounting
approachPrinciple
accounting
methodSpecialtreatment forinterest rate
swaps

Type, etc. of
derivativetransaction
Interest rate swap
transaction
Floating receivable;
fixed payable
Interest rate swap
transaction
Floating receivable;
fixed payable(Unit: thousands of yen)

Main hedged
item

Due after one
year

Fair value

Calculation method
for the fair value

Long‐term loans
payable21,400,000

21,400,000(14,581)

Based on the pricepresented bycorrespondent
financial institutions

Long‐term loans
payable1,000,000

1,000,000(Note)―

22,400,000

22,400,000(14,581)―

Total(Note)

Contract amount, etc.

Since those with special treatment of interest rate swaps are treated integrally with hedged long‐term loans payable, the market
values of such are shown as included in the fair value in “(3) Long‐term loans payable” in “[Notes on Financial Instruments], 2.
Matters concerning fair value, etc. of financial instruments” above.

‐ 28 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

Current fiscal period (As of January 31, 2022)
Hedge
accounting
approachPrinciple
accounting
methodSpecialtreatment forinterest rate
swaps

Type, etc. of
derivativetransaction
Interest rate swap
transaction
Floating receivable;
fixed payable
Interest rate swap
transaction
Floating receivable;
fixed payable(Unit: thousands of yen)

Main hedged
item

Due after
one year

Fair value

Calculation method
for the fair value

Long‐term loans
payable27,300,000

19,300,000(410)

Based on the pricepresented bycorrespondent
financial institutions

Long‐term loans
payable1,000,000

1,000,000(Note)―

28,300,000

20,300,000

(410)

―

Total
(Note)

Contract amount, etc.

Since those with special treatment of interest rate swaps are treated integrally with hedged long‐term loans payable, the market
values of such are shown as included in the fair value in “(3) Long‐term loans payable” in “[Notes on Financial Instruments], 2.
Matters concerning fair value, etc. of financial instruments” above.

[Notes on Retirement Benefits]
Previous fiscal period (As of July 31, 2021)
Not applicable.
Current fiscal period (As of January 31, 2022)
Not applicable.
[Notes on Tax‐Effect Accounting]
1. Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities(Unit: thousands of yen)Previous fiscal period
As of Jul. 31, 2021

Current fiscal period
As of Jan. 31, 2022

Deferred tax assets
Non‐deductible accrued enterprise tax
Deferred gains or losses on hedges

2.

13

12

5,805

10,603

Subtotal deferred tax assets

5,819

10,615

Valuation allowance(5,805)(10,603)

Total deferred tax assets
Deferred tax liabilities
Deferred gains or losses on hedges

13

12(1,217)(10,473)

Net deferred tax assets (liabilities)(1,204)(10,461)

Breakdown of major components that caused any significant differences between the statutory tax rate and the effective
income tax rate after application of tax‐effect accounting(Unit: %)Previous fiscal period
As of Jul. 31, 2021

Current fiscal period
As of Jan. 31, 2022

31.46

31.46

(31.43)0.07(31.43)(0.03)

0.10

0.00

Statutory tax rate
[Adjustments]
Deductible distributions payable
Other, net
Effective income tax rate after application of tax‐
effect accounting‐ 29 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
[Notes on Share of Profit (Loss) of Entities Accounted for Using Equity Method, Etc.]
Previous fiscal period (As of July 31, 2021)
Not applicable.
Current fiscal period (As of January 31, 2022)
Not applicable.
[Notes on Related‐Party Transactions]
1. Parent company, major corporate unitholders, etc.
Previous fiscal period (from February 1, 2021, to July 31, 2021)
Not applicable.
Current fiscal period (from August 1, 2021, to January 31, 2022)
Not applicable.
2.

Affiliated company, etc.
Previous fiscal period (from February 1, 2021, to July 31, 2021)
Not applicable.
Current fiscal period (from August 1, 2021, to January 31, 2022)
Not applicable.

3.

Fellow subsidiary, etc.
Previous fiscal period (from February 1, 2021, to July 31, 2021)
Not applicable.
Current fiscal period (from August 1, 2021, to January 31, 2022)
Not applicable.

4.

Director, major individual unitholder, etc.
Previous fiscal period (from February 1, 2021, to July 31, 2021)
Not applicable.
Current fiscal period (from August 1, 2021, to January 31, 2022)
Not applicable.

[Notes on Asset Retirement Obligations]
Previous fiscal period (As of July 31, 2021)
Not applicable.
Current fiscal period (As of January 31, 2022)
Not applicable.

‐ 30 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
[Notes on Investment and Rental Properties]
HCM owns healthcare facilities (37 properties in total) primarily in the Three Major Metropolitan Areas and Core Cities. The
carrying amount, amount of increase (decrease) during the period and fair value of these investment and rental properties are as
follows:(Unit: thousands of yen)Previous fiscal period
From: Feb. 1, 2021
To: Jul. 31, 2021

Current fiscal period
From: Aug. 1, 2021
To: Jan. 31, 2022

Carrying amount
Balance at beginning of
periodAmount of increase(decrease) during period
Balance at end of period
Fair value at end of period

66,423,062

66,877,828

454,765(352,254)

66,877,828

66,525,573

72,531,000

73,485,000(Note 1) “Carrying amount” is the amount of the cost of acquisition, less accumulated depreciation.
(Note 2) Out of the amount of increase (decrease) during the previous fiscal period, the amount of increase is mainly attributable to acquisition(755,067 thousand yen) comprising property acquisition of Nichii Home Nishikokubunji. The amount of decrease is mainly attributable todepreciation (473,904 thousand yen). Out of the amount of increase (decrease) during the current fiscal period, the amount of decrease ismainly attributable to depreciation (479,559 thousand yen).
(Note 3) “Fair value at end of period” is the appraisal value or survey value by an outside real estate appraiser.

The income (loss) concerning investment and rental properties is as stated in “Notes on Statement of Income” earlier in thisdocument.
[Notes on Revenue Recognition]
Current fiscal period (from August 1, 2021, to January 31, 2022)
Information is omitted due to the immateriality of the eligible revenue.
[Notes on Segment Information]
1. Segment information
Segment information is omitted because HCM operates a single segment, which is the real estate leasing business.
2.

Related information
Previous fiscal period (from February 1, 2021, to July 31, 2021)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single products andservices category are in excess of 90% of operating revenue on the statement of income.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about major customers
Information on net sales to a single external customer is omitted because consent has not been obtained from thetenant.
Current fiscal period (from August 1, 2021, to January 31, 2022)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single products andservices category are in excess of 90% of operating revenue on the statement of income.
‐ 31 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about major customers
Information on net sales to a single external customer is omitted because consent has not been obtained from thetenant.
[Notes on Per Unit Information]
Previous fiscal period
From: Feb. 1, 2021
To: Jul. 31, 2021

Current fiscal period
From: Aug. 1, 2021
To: Jan. 31, 2022

Net assets per unit

105,995 yen

105,681 yen

Net income per unit

2,962 yen

2,935 yen

(Note 1) Net income per unit is calculated by dividing net income by the average number of investment units during the period (the daily weighted average
number of investment units). In addition, diluted net income per unit is not stated because there are no diluted investment units.
(Note 2) The following is the basis for calculation of net income per unit.

Previous fiscal period
From: Feb. 1, 2021
To: Jul. 31, 2021

Current fiscal period
From: Aug. 1, 2021
To: Jan. 31, 2022

921,201

913,069――

Net income attributable to common investment units(thousands of yen)921,201

913,069

Average number of investment units during period (units)

311,001

311,001

Net income (thousands of yen)Amount not attributable to common unitholders (thousands of yen)

[Notes on Significant Subsequent Events]
1. Acquisition of assets
On January 17, 2022, HCM entered into a purchase agreement for the acquisition of trust beneficiary interests in thefollowing 10 real estate properties ("Assets to Be Acquired (Planned) in the 15th Fiscal Period"), and on February 1, 2022,
HCM acquired SOMPO CARE La vie Re Kobeikawadani, SOMPO CARE Sompo no ie Sayama, Royal Kawaguchi, NOAH GARDEN
LEGEND, NOAH GARDEN L Grace and NOAH GARDEN CASA RICH. Acquisition of NOAH GARDEN Season Bell, Heartland
Kawaguchi Meiseien, Granda Minamiurawa, and Madoka Minamiurawa is scheduled to be completed on March 30, 2022.

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This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

Location(Planned)
Acquisition price(Note)(millions of yen)

(Planned) Dateof acquisition

SOMPO CARE La vie Re Kobeikawadani

Kobe‐shi, Hyogo

1,288

Feb. 1, 2022

SOMPO CARE Sompo no ie Sayama

Sakai‐shi, Osaka

600

Feb. 1, 2022

Royal Kawaguchi

Kawaguchi‐shi, Saitama

1,260

Feb. 1, 2022

NOAH GARDEN LEGEND

Sapporo‐shi, Hokkaido

859

Feb. 1, 2022

NOAH GARDEN L Grace

Sapporo‐shi, Hokkaido

622

Feb. 1, 2022

NOAH GARDEN Season Bell

Sapporo‐shi, Hokkaido

1,350

Mar. 30, 2022

Heartland Kawaguchi Meiseien

Kawaguchi‐shi, Saitama

2,000

Mar. 30, 2022

Granda Minamiurawa

Kawaguchi‐shi, Saitama

1,022

Mar. 30, 2022

Madoka Minamiurawa

Kawaguchi‐shi, Saitama

822

Mar. 30, 2022

NOAH GARDEN CASA RICH

Sapporo‐shi, Hokkaido

1,619

Feb. 1, 2022

─11,442─Property
number
Paid nursing
home‐34
Paid nursing
home‐35
Paid nursing
home‐36
Paid nursing
home‐37
Paid nursing
home‐38
Paid nursing
home‐39
Paid nursing
home‐40
Paid nursing
home‐41
Paid nursing
home‐42
Servicedhousing forthe elderly‐3
Total

Property name─(Note) (Planned) acquisition price does not include acquisition‐related expenses, property tax, city planning tax, consumption tax and local
consumption tax.

2. Issuance of new investment units
In accordance with the resolutions of the Board of Directors on January 17, 2022, and January 25, 2022, HCM determined toissue 46,190 new investment units through public offering and 2,309 new investment units via third‐party allotment withSMBC Nikko Securities Inc. as an allotted party and to use the proceeds to fund a portion of acquisition for Assets to Be
Acquired (Planned) in the 15th Fiscal Period. Payment for the new investment units by public offering and third‐party
allotment was completed on February 1, 2022, and March 1, 2022, respectively, with a total payment of 5,843 million yen.
As a result, total unitholders' capital amounted to 38,323 million yen and the total number of investment units issued andoutstanding was 359,500 units.
Issuance of New Investment Units by Public Offering (Primary Offering)Number of new investment units issued:
46,190 units
Issue price (offer price):

124,764 yen per unit

Total issue price (total offer price):

5,762,849,160 yen

Paid‐in amount (issue amount):

120,477 yen per unit

Total paid‐in amount (total issue amount):

5,564,832,630 yen

Payment date:February 1, 2022 (Tue.)

Issuance of New Investment Units by Third‐Party Allotment
Number of new investment units issued:

2,309 units

Paid‐in amount (issue amount):

120,477 yen per unit

Total paid‐in amount (total issue amount):

278,181,393 yen

Payment date:

March 1, 2022 (Tue.)Allotted party:

SMBC Nikko Securities Inc.

:

‐ 33 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
3. Borrowing of funds
HCM decided on January 17, 2022, to borrow funds to allocate to a portion of the acquisition and its related expenses for
Assets to Be Acquired (Planned) in the 15th Fiscal Period. A summary of the borrowings to be made in conjunction with thisdecision is as follows.
Type

Short
term

Long
term

LenderSumitomo Mitsui
Banking
Corporation

Borrowingamount2 billion yen

Loan syndicate
with Sumitomo
Mitsui Banking
Corporation as anarranger (Note 2)

700 million
yen

Loan syndicate
with Sumitomo
Mitsui Banking
Corporation as anarranger (Note 3)

2.8 billion
yenInterest rate
(Note 4)

Base interest rate
(JBA 3‐month
Japanese yen
TIBOR) + 0.25%

Base interest rate
(JBA 3‐month
Japanese yen
TIBOR) + 0.35%(Note 5)(Note 6)
Base interest rate
(JBA 3‐month
Japanese yen
TIBOR) + 0.55%(Note 5)(Note 6)

Drawdown
date

Borrowing
methodRepayment
date

March 30,
2022

Borrowings
under anindividual
term loan
agreement
dated
March 28,2022, withthe lenderlistedMarch 30,
2023

March 30,
2022

Borrowings
under anindividual
term loan
agreement
dated
March 28,2022, withthe lenderlistedJanuary 31,
2026

Repay
ment
metho
d

Securit
y

Lump‐
sum
repay
ment
on
princip
al
repay
ment
date

Unsecured andunguaranteedJanuary 31,
2028(Note 1) The borrowing is subject to a number of conditions, including the execution of an agreement relating to the loan that is reasonably
satisfactory to the lenders mentioned above and the satisfaction of all lending preconditions, which are to be separately determined.
(Note 2) The loan syndicate will consist of Sumitomo Mitsui Banking Corporation and Sumitomo Mitsui Trust Bank, Limited.
(Note 3) The loan syndicate will consist of Sumitomo Mitsui Banking Corporation, Resona Bank, Limited, Shinkin Central Bank, The Bank ofFukuoka, Ltd., The Dai‐ichi Life Insurance Company, Limited, The 77 Bank, Ltd., The Gunma Bank, Ltd. and The Bank of Yokohama,
Ltd.
(Note 4) The first interest payment date is April 30, 2022, and subsequent interest payments will be due on the last day of January, April, Julyand October of every year thereafter, as well as on the principal repayment date (or the following business day if that date is not abusiness day). For the Japanese yen TIBOR published by the JBA TIBOR Administration, please refer to the JBA TIBOR Administration’s
website (https://www.jbatibor.or.jp/english/rate/).
(Note 5) Loan fees and other fees paid to lenders are not included.
(Note 6) The Company plans to enter into an interest rate swap agreement to effectively establish a fixed interest rate. The details of thisagreement will be announced once the interest rate is determined.

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This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(10) Changes in Total Number of Investment Units Issued and Outstanding
The following are changes in total number of investment units issued and outstanding and unitholders’ capital over the mostrecent five years up to the end of the current fiscal period.

Date

Description

Total number of investment
units issued and outstanding(units)ChangeFebruary 1, 2017

March 1, 2017

February 1, 2019

February 27, 2019
April 19, 2019

Capital increase
through public
offering
Capital increase
through third‐party
allotment
Capital increase
through public
offering
Capital increase
through third‐party
allotment
Distribution inexcess of earnings

BalanceUnitholders’ capital(millions of yen)

Unitholders' capital, net(millions of yen) (Note 1)

ChangeChangeBalance

Remarks

Balance69,150189,650

6,749

19,463

6,749

19,463(Note 2)

3,457

193,107337

19,800337

19,800(Note 3)112,280

305,387

12,07631,876

12,07631,876(Note 4)

5,614

311,001603

32,480603

32,480(Note 5)－

311,001－

32,480(62)

32,417(Note 6)

October 18, 2019

Distribution inexcess of earnings－

311,001－

32,480(87)

32,330(Note 7)

April 21, 2020

Distribution inexcess of earnings－

311,001－

32,480(88)

32,242(Note 8)October 21, 2020

Distribution inexcess of earnings－

311,001－

32,480(89)

32,152(Note 9)April 21, 2021

Distribution inexcess of earnings－

311,001－

32,480(93)

32,058(Note 10)October 21, 2021

Distribution inexcess of earnings－

311,001－

32,480(94)

31,964(Note 11)

(Note 1) The figure indicates the amount obtained by subtracting deduction from unitholders’ capital from unitholders’ capital. The amount does nottake into account the change in unitholders’ capital in line with the implementation of distribution in excess of earnings of reserve fortemporary difference adjustments.
(Note 2) New investment units were issued through public offering with an issue price of 101,244 yen (paid‐in amount of 97,609 yen) per unit.
(Note 3) New investment units were issued through third‐party allotment in line with public offering, with a paid‐in amount of 97,609 yen per unit.
(Note 4) New investment units were issued through public offering with an issue price of 111,442 yen (paid‐in amount of 107,555 yen) per unit.
(Note 5) New investment units were issued through third‐party allotment in line with public offering, with a paid‐in amount of 107,555 yen per unit.
(Note 6) HCM resolved at the Board of Directors’ meeting held on March 15, 2019, to set cash distribution in excess of earnings (return of capital that
falls under the category of distribution reducing unitholders’ capital for tax purposes) at 326 yen per unit as cash distribution for the 8th fiscal
period (fiscal period ended January 2019), and started the payout on April 19, 2019.
(Note 7) HCM resolved at the Board of Directors’ meeting held on September 13, 2019, to set cash distribution in excess of earnings (return of capitalthat falls under the category of distribution reducing unitholders’ capital for tax purposes) at 280 yen per unit as cash distribution for the 9th
fiscal period (fiscal period ended July 2019), and started the payout on October 18, 2019.
(Note 8) HCM resolved at the Board of Directors’ meeting held on March 17, 2020, to set cash distribution in excess of earnings (return of capital that
falls under the category of distribution reducing unitholders’ capital for tax purposes) at 285 yen per unit as cash distribution for the 10th
fiscal period (fiscal period ended January 2020), and started the payout on April 21, 2020.
(Note 9) HCM resolved at the Board of Directors’ meeting held on September 15, 2020, to set cash distribution in excess of earnings (return of capitalthat falls under the category of distribution reducing unitholders’ capital for tax purposes) at 289 yen per unit as cash distribution for the
11th fiscal period (fiscal period ended July 2020), and started the payout on October 21, 2020.
(Note 10) HCM resolved at the Board of Directors’ meeting held on March 16, 2021, to set cash distribution in excess of earnings (return of capital that
falls under the category of distribution reducing unitholders’ capital for tax purposes) at 300 yen per unit as cash distribution for the 12th
fiscal period (fiscal period ended January 2021), and started the payout on April 21, 2021.
(Note 11) HCM resolved at the Board of Directors’ meeting held on September 14, 2021, to set cash distribution in excess of earnings (return of capitalthat falls under the category of distribution reducing unitholders’ capital for tax purposes) at 304 yen per unit as cash distribution for the
13th fiscal period (fiscal period ended July 2021), and started the payout on October 21, 2021.

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This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

3.

Reference Information(1) Information on Prices of Assets Under Management, Etc.
① Investment Status

Asset type

Asset use

Area

Trust beneficiary Homes andPaid nursing
interests in real facilities for the homeestateelderly

Servicedhousing for theelderly

Three Major
Metropolitan Areas(Note 3)41,80060.8Core Cities (Note 4)

5,011

7.3

Other Areas (Note 5)

1,688

2.5

Three Major
Metropolitan Areas(Note 3)

3,027

4.4

Core Cities (Note 4)‐‐

Other Areas (Note 5)

‐

‐

‐

‐

‐

‐

51,528

74.9

Three Major
Metropolitan Areas(Note 3)‐‐

Core Cities (Note 4)

2,085

3.0

Other Areas (Note 5)‐‐Group homes for the elderly withdementia
Other facilities for the elderly
Subtotal
Medical service‐related facilities,
etc.

Multi‐use
facilities

Current fiscal period(as of January 31, 2022)
Total amount owned
As a percentage of total(millions of yen)assets(Note 1)(%)
(Note 2)Complex of
paid nursing
homes,medical
service related
facilities,etc.

Subtotal

2,085

3.0

Three Major
Metropolitan Areas(Note 3)

12,906

18.8

Core Cities (Note 4)‐‐

Other Areas (Note 5)‐‐

12,90618.8－－

66,52096.7

Subtotal
Other
Total
Deposits and other assets

2,257

3.3

Total assets

68,778100.0

Total liabilities

35,911

52.2

Total net assets

32,86747.8(Note 1) “Total amount owned” is the carrying amount (in the case of trust beneficiary interests in real estate, the book value after depreciation andamortization).
(Note 2) Figures in “As a percentage of total assets” are rounded to one decimal place.
(Note 3) “Three Major Metropolitan Areas” refers to the Tokyo Metropolitan Area (Tokyo, Kanagawa, Saitama, Chiba prefectures), Kinki Area (Osaka,
Kyoto, Hyogo prefectures) and Chubu Area (Aichi prefecture).
(Note 4) “Core Cities” refers to designated cities, prefectural capitals and regional core cities other than the Three Metropolitan Areas. Regional corecities refers to cities with a population of 200,000 or more.
(Note 5) “Other Areas” refers to areas other than the Three Metropolitan Areas and Core Cities.

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This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
② Investment Assets(a) Major Investment Securities
Not applicable.
(b) Investment Real Estate Properties
Not applicable.
(c) Other Major Investment Assets
a. Overview of Real Estate in Trust
Overview of trust beneficiary interests in real estate (hereinafter, “real estate in trust”) that HCM owns as of January 31, 2022,
is as follows.
(i) Acquisition prices, etc. and shares of investment
Overview of trust beneficiary interests in real estate that HCM owns as of January 31, 2022, is as follows.
Type ofspecified
asset

Area

Property nameAcquisition price(millions of yen)
(Note 1)

Kinki Area

Period‐end
appraisal value(millions of yen)
(Note 4)

824

1.2

810

974

Bonsejour Hino

724

1.1

709

818

Bonsejour Musashi‐shinjo

582

0.9

571

643

Medical Rehabilitation Home
Bonsejour Hadanoshibusawa

728

1.1

694

850

ASHEIM Hikarigaoka

1,385

2.1

1,413

1,520

ASHEIM Bunkyohakusan

1,430

2.1

1,406

1,680

3,580

5.3

3,382

3,940

3,050

4.5

2,982

3,300

1,740

2.6

1,849

1,990

824

1.2

816

886

Granda Tsuruma‐Yamato

1,000

1.5

1,036

1,060

Smiling Home Medice Adachi

2,253

3.4

2,304

2,500

Hanakotoba Minami

1,071

1.6

1,083

1,240

Hanakotoba Miura

GOOD TIME HOME Fudo‐mae

Trustbeneficiaryinterests inreal estate

Carrying amount(millions of yen)
(Note 3)

Bonsejour Chitose‐funabashi

SOMPO CARE La vie Re
Machidaonoji
SOMPO CARE La vie Re
AzaminoTokyo
Metropolitan
Area

Share ofinvestment(%)(Note 2)

Bonsejour Yotsugi

615

0.9

658

668

SOMPO CARE La vie Re Hama‐
Kawasaki

1,710

2.6

1,714

1,810

Hanakotoba Shin‐Yokohama

2,071

3.1

2,113

2,330

Hanakotoba Shin‐Yokohama II

375

0.6

397

383

Hanakotoba Odawara

880

1.3

899

947

Sunny Life Kita‐Shinagawa

1,825

2.7

1,854

2,040

Sunny Life Kamakura

1,418

2.1

1,482

1,580

Nichii Home Nishikokubunji

720

1.1

752

761

Subtotal

28,80645.0

28,93631,920

1,950

2.9

1,909

2,100

1,930

2.9

1,859

2,210

1,200

1.8

1,168

1,360

514

0.8

496

557

4,320

6.4

4,174

4,540

4,150

6.2

4,139

4,500

930

1.4

918

995

SHIP Senri Building

12,92019.3

12,906

14,200Subtotal

27,914

41.6

27,57330,462AQUAMARINE
Nishinomiyahama
SOMPO CARE Sompo no ie
Awajiekimae
SOMPO CARE Sompo no ie
Kobekamisawa
Medical Home Bonsejour
Itami
Kobe Gakuentoshi Building(Hapine Kobe Gakuentoshi)
GreenLife Moriguchi
Hapine Kobe Uozaki Nibankan‐ 37 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Type ofspecified
asset

Trust
beneficiaryinterests inreal estate

Carrying amount(millions of yen)
(Note 3)

Period‐end
appraisal value(millions of yen)
(Note 4)

1.9

1,225

1,450

1,270

1.9

1,225

1,450

SAWAYAKA Tachibanakan

1,520

2.3

1,346

1,550

SAWAYAKA Mekarikan

1,380

2.1

1,241

1,430

770

1.1

767

860

Verde Minowa

1,620

2.4

1,656

1,700

Niigata Rehabilitation Hospital

2,060

3.1

2,085

2,300

Subtotal

7,350

11.0

7,096

7,840

390

0.6

364

383

1,328

2.0

1,324

1,430

1,718

2.6

1,688

1,813

67,057100.0

66,52073,485Acquisition price(millions of yen)
(Note 1)Area

Property name

Chubu Area

Medical Rehabilitation Home
Bonsejour Komaki

1,270

SubtotalCore Cities

AIKOEN ICHIBANKAN Building

SAWAYAKA Tagawakan
Other Areas

Verde Hotaka
Subtotal

Total (37 properties)

Share ofinvestment(%)(Note 2)

(Note 1) “Acquisition price” does not include acquisition‐related expenses, property tax, city planning tax, consumption tax and local
consumption tax.
(Note 2) “Share of investment” refers to the acquisition price of each property as a percentage of the total acquisition price, and the figures arerounded to one decimal place.
(Note 3) “Carrying amount” indicates book value after depreciation and amortization as of January 31, 2022.
(Note 4) “Period‐end appraisal value” indicates amounts stated in the appraisal report with appraisal date of January 31, 2022, prepared by realestate appraisers of Japan Real Estate Institute, The Tanizawa Sogo Appraisal Co., Ltd., Rich Appraisal Institute Co., Ltd., Daiwa Real
Estate Appraisal Co., Ltd. and JLL Morii Valuation & Advisory K.K., based on the Articles of Incorporation of HCM and the rules set by theInvestment Trusts Association, Japan.

‐ 38 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(ii) Buildings and their leasing status
The annual rent and tenant leasehold and security deposits of each property are not disclosed as consent from the tenants
has not been obtained. The total annual rent from real estate in trust owned by HCM as of January 31, 2022, is 4,235
million yen (Note).
(Note) The amount is obtained by multiplying the total of monthly rent in lease agreements effective as of January 31, 2022, by 12 (including
tax, etc.), and is rounded down to the nearest million yen.
Structure/ No. ofConstruction
Property
floorscompletion
name(Note 1)
(Note 2)
Paid nursing
AQUAMARINE
RC/5F
May 18, 2007
home‐1
Nishinomiyahama
Paid nursing
Bonsejour Chitose‐
RC/B1 6F
Mar. 8, 1988
home‐2
funabashi
Paid nursing
Bonsejour Hino
RC/3F
May 2, 1990
home‐3
Paid nursing
Bonsejour
RC/4F
Feb. 21, 1985
home‐4
Musashi‐shinjo
MedicalPaid nursing
Rehabilitation
RC/5F
Jul. 17, 1991
home‐5Home Bonsejour
Hadanoshibusawa
MedicalPaid nursing
Rehabilitation
SRC RC S/10F
Mar. 13, 1991
home‐6
Home Bonsejour
Komaki
Paid nursing
ASHEIM
RC/3F
Mar. 6, 2006
home‐7
Hikarigaoka
Paid nursing
ASHEIM
RC/8F
Feb. 27, 2007
home‐8
Bunkyohakusan
SOMPO CARE La
Paid nursingvie ReRC/B1 6F
Oct. 29, 2007
home‐9Machidaonoji
Paid nursing
SOMPO CARE La
RC/B1 5F
Mar. 1, 2004
home‐10vie Re Azamino
Paid nursing
SAWAYAKA
RC/B1 6F
Oct. 31, 2005
home‐11
Tachibanakan
Paid nursing
SAWAYAKA
RC/4F
Nov. 15, 2005
home‐12
Mekarikan
Paid nursing
SAWAYAKA
RC/3F
Jan. 20, 2006
home‐13
Tagawakan
Paid nursing
GOOD TIME HOME
RC/B1 5F
Mar. 18, 1992
home‐14
Fudo‐mae
Paid nursing
Bonsejour Yotsugi
RC/5F
Mar. 28, 1989
home‐15
SRC/11F
Paid nursing
Medical Home
(exclusively‐
Mar. 3, 1989
home‐16
Bonsejour Itami
owned portion)
Kobe Gakuentoshi
Paid nursing
Building (Hapine
RC/B1 9F
Jan. 7, 2009home‐17
Kobe Gakuentoshi)
Paid nursing
GreenLifeS RC/9F
Sep. 6, 2006
home‐18
Moriguchi
Paid nursing
Hapine Kobe
S/B1 4F
Mar. 31, 2010
home‐19
Uozaki Nibankan
Paid nursing
Granda Tsuruma‐
RC S/5F
Mar. 6, 1998
home‐20
YamatoPaid nursing
Smiling Home
RC/4F
Nov. 16, 2005
home‐21
Medice Adachi
AIKOEN
Paid nursing
ICHIBANKAN
S/5F
Feb. 4, 2010
home‐22
Building
Paid nursing
Hanakotoba
RC/7F
Feb. 24, 2010
home‐23
Minami
Paid nursing
Hanakotoba Miura
RC/4F
Jun. 27, 2007
home‐24
SOMPO CARE La
RC/4F
Paid nursingvie Re Hama‐(exclusively‐
Mar. 8, 2007
home‐25
Kawasakiowned portion)
Paid nursing
Hanakotoba Shin‐
RC/9F
Mar. 15, 2004
home‐26
Yokohama
Paid nursing
Hanakotoba Shin‐
RC/B1 7F
Apr. 25, 2007
home‐27
Yokohama II
Paid nursing
Hanakotoba
RC/4F
Sep. 16, 2009home‐28
OdawaraPaid nursing①S/5F①Nov. 20, 2003
Verde Minowa
home‐29②S RC/8F②Feb. 28, 1974
Property
number‐ 39 ‐

leasable area(m2)
(Note 3)

Leased area(m2)
(Note 4)

No. of tenants(companies)(Note 5)

Operational
rate (%)(Note 6)

5,274.54

5,274.542

100.0

2,342.17

2,342.171

100.0

1,984.17

1,984.171

100.0

1,710.43

1,710.431

100.0

3,435.79

3,435.791

100.0

8,858.49

8,858.491

100.0

3,628.60

3,628.601

100.0

2,507.25

2,507.252

100.0

7,720.17

7,720.171

100.0

5,789.25

5,789.25

1

100.0

5,652.94

5,652.941

100.0

4,720.46

4,720.461

100.0

2,366.20

2,366.201100.0

3,400.20

3,400.20

1

100.0

1,962.89

1,962.891

100.0

2,129.87

2,129.87

1

100.0

12,636.48

12,636.48

1

100.0

8,356.85

8,356.851

100.0

1,772.89

1,772.891

100.0

3,427.08

3,427.081

100.0

3,870.98

3,870.982

100.0

4,311.20

4,311.20

4100.0

1,710.68

1,710.68

1

100.0

1,959.64

1,959.641

100.0

4,060.21

4,060.215

100.0

5,230.23

5,230.231

100.0

1,837.29

1,837.291

100.0

2,203.42

2,203.42

1

100.0

11,098.17

11,098.17

1

100.0

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Property
number
Paid nursing
home‐30
Paid nursing
home‐31
Paid nursing
home‐32
Paid nursing
home‐33

Property
name
Verde Hotaka

Sunny Life Kita‐
S/3F
Shinagawa
Sunny Life
S/5F
Kamakura
Nichii Home
S/3F
Nishikokubunji
SOMPO CARE
Serviced housing
Sompo no ie
RC/12Ffor the elderly ‐1
Awajiekimae
SOMPO CARE
Serviced housing
Sompo no ie
S/9F
for the elderly ‐2
Kobekamisawa
Niigata
Medical service‐①RC/3F
Rehabilitation
related facilities‐1②S/5F
HospitalComplex of paid
nursinghomes,medical SHIP Senri Building
RC/B1 11F
service related
facilities,etc.‐1
Total―(Note 1)

leasable area(m2)
(Note 3)

Leased area(m2)
(Note 4)

No. of tenants(companies)(Note 5)

Operational
rate (%)(Note 6)

6,352.86

6,352.861

100.0

Sep. 20, 2018

2,135.54

2,135.541

100.0

Sep. 19, 2014

3,817.91

3,817.91

1

100.0

Sep. 29, 1990

1,559.99

1,559.991

100.0

Jun. 12, 2009

5,745.15

5,745.15

1

100.0

Jun. 11, 2009

4,058.35

4,058.35

1100.0①Apr. 20, 1990
②Feb. 28, 2001

13,476.55

13,476.55

1

100.0

Sep. 5, 2008

24,813.85

24,813.85

1

100.0

―

187,918.74

187,918.74

47

100.0

Structure/ No. ofConstruction
floorscompletion(Note 1)
(Note 2)
①S SRC/5F①Sep. 29, 1982
②S/2F
②Jul. 1, 1989

“Structure/No. of floors” indicates information provided in the real estate registry of the building of each owned asset. “S” refers
to steel structure, “RC” refers to reinforced concrete structure, “SRC” refers to steel‐reinforced concrete structure, “B” refers tobasement floor and “F” refers to floors above ground.

(Note 2)

“Construction completion” indicates the date of new construction provided in the real estate registry of the building of each
owned asset.

(Note 3)

“Leasable area” indicates figures based on the lease agreement of each building.

(Note 4)

“Leased area” indicates the areas out of the leasable area for which actual lease agreements have been concluded and are leased.

(Note 5)

“No. of tenants” indicates the number of tenants of each building based on the lease agreements. For the section of healthcare
facilities in which the trustee of each owned asset and HCM conclude a lease agreement (master lease agreement) with an aim
to have HCM sublease to the master lease company (section of paid nursing home with nursing care for Smiling Home Medice
Adachi), the master lease company (operator) is counted as a tenant, and accordingly indicated as the number of tenants; while
for the properties subject to pass‐through master lease agreement where rents from end tenants are received intact, in principle,
the total number of end tenants is indicated as the number of tenants. However, for the sections that are not subject to the leaseagreement (master lease agreement) between the trustee and HCM, the number of lessees leasing a building from the trustee iscounted as the number of tenants and indicated accordingly.

(Note 6)

”Occupancy rate” indicates the leased area as a percentage of the leasable area of each owned asset as of January 31, 2022, andis rounded to one decimal place.

‐ 40 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(iii) Overview of homes and facilities for the elderly
Property number

Paid nursing
home‐1
Paid nursing
home‐2
Paid nursing
home‐3
Paid nursing
home‐4
Paid nursing
home‐5
Paid nursing
home‐6
Paid nursing
home‐7
Paid nursing
home‐8Paid nursing
home‐9Paid nursing
home‐10
Paid nursing
home‐11
Paid nursing
home‐12Paid nursing
home‐13
Paid nursing
home‐14
Paid nursing
home‐15
Paid nursing
home‐16
Paid nursing
home‐17
Paid nursing
home‐18
Paid nursing
home‐19
Paid nursing
home‐20

Property name

AQUAMARINE
Nishinomiyahama
Bonsejour Chitose‐
funabashi
Bonsejour Hino
Bonsejour Musashi‐
shinjoMedical Rehabilitation
Home Bonsejour
Hadanoshibusawa
Medical Rehabilitation
Home Bonsejour
KomakiASHEIM Hikarigaoka
ASHEIM
Bunkyohakusan
SOMPO CARE La vie
Re Machidaonoji
SOMPO CARE La vie
Re Azamino
SAWAYAKA
Tachibanakan

Type of facility

Paid nursing home
Paid nursing home
Paid nursing home
Paid nursing home

No. ofresidents(persons)(Note 1)

90

100

100

100.0

June 7, 2021

42

47

41

87.2

December 1, 2021

56

58

54

93.1

October 1, 2021

46

49

44

89.8

May 1, 2021

Benesse Style
Care Co., Ltd.

100

101

97

96.0

May 1, 2021

Residential typepaid nursing home

Benesse Style
Care Co., Ltd.

124

165

131

79.4

May 1, 2021

83

89

82

92.1

July 1, 2021

50

52

43

82.7

July 1, 2021

163

169

114

67.5

October 1, 2021

145

145

144

99.3

October 1, 2021

104

104

104

100.0

July 16, 2021

95

95

80

84.2

November 1, 2021

60

60

60

100.0

As of Jul. 31, 2021

61

67

58

86.6

October 1, 2021

61

65

56

86.2

May 1, 2021

62

64

53

82.8

October 1, 2021

131

138

135

97.8

October 1, 2021

155

189

189

100.0

April 1, 2021

47

47

47

100.0

June 7, 2021

73

90

67

74.4

December 1, 2021

82

82

75

91.5

June 7, 2021

90

90

82

91.1

November 1, 2021

Paid nursing home
Paid nursing home
Paid nursing home
Paid nursing home
Paid nursing home

Paid nursing home
Paid nursing home

Bonsejour Yotsugi

Paid nursing home

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

Residential typepaid nursing home

GreenLife Moriguchi

Paid nursing home

Hapine Kobe Uozaki
Nibankan
Granda Tsuruma‐
Yamato

GREEN LIFE Co.,Ltd.
Benesse Style
Care Co., Ltd.
Benesse Style
Care Co., Ltd.
Benesse Style
Care Co., Ltd.

Capacity(persons)(Note 1)

Paid nursing home

SAWAYAKA Mekarikan Paid nursing home
SAWAYAKA
Tagawakan
GOOD TIME HOME
Fudo‐mae

Operator

Preparation date ofOccupancy
Property DisclosurerateStatement of(%)
Important Matters(Note 2)
(Note 3)

No. ofrooms(rooms)(Note 1)

Paid nursing home

Paid nursing home
Paid nursing home

AS PARTNERS
Co., Ltd.
AS PARTNERS
Co., Ltd.
Sompo CareInc.
Sompo CareInc.
Sawayaka Club
Co., Ltd.
Sawayaka Club
Co., Ltd.
Sawayaka Club
Co., Ltd.
JAPAN
LIFEDESIGN Inc.
Benesse Style
Care Co., Ltd.
Benesse Style
Care Co., Ltd.
GREEN LIFE Co.,Ltd.
GREEN LIFE Co.,Ltd.
GREEN LIFE Co.,Ltd.
Benesse Style
Care Co., Ltd.
GREEN LIFEHIGASHI NIHON
Co., Ltd.
MedicalCorporation
AIKOKAI

Paid nursing
home‐21

Smiling Home Medice
Adachi

Paid nursing home

Paid nursing
home‐22

AIKOEN ICHIBANKAN
Building

Paid nursing home

Hanakotoba Minami

Paid nursing home

Proud Life Inc.

51

51

46

90.2

November 1, 2021

Hanakotoba Miura

Paid nursing home

Proud Life Inc.

53

54

52

96.3

November 1, 2021

Paid nursing
home‐25

SOMPO CARE La vie
Re Hama‐Kawasaki

Paid nursing home

Sompo Care
Inc.

58

58

52

89.7

October 1, 2021

Paid nursing
home‐26
Paid nursing
home‐27
Paid nursing
home‐28
Paid nursing
home‐29
Paid nursing
home‐30
Paid nursing
home‐31
Paid nursing
home‐32

Hanakotoba Shin‐Yokohama
Hanakotoba Shin‐Yokohama II

Paid nursing home

Proud Life Inc.

136

136

118

86.8

July 1, 2021

Paid nursing home

Proud Life Inc.

29

30

29

96.7

September 1, 2021

Hanakotoba Odawara

Paid nursing home

Proud Life Inc.

60

65

63

96.9

September 1, 2021

Verde Minowa

Paid nursing home

174

206

193

93.7

September 1, 2021

Verde Hotaka

Paid nursing home

121

174

174

100.0

July 1, 2021

Sunny Life Kita‐
ShinagawaPaid nursing home

66

66

59

89.4

October 1, 2021

Sunny Life Kamakura

Residential typepaid nursing home

128

128

123

96.1

July 1, 2021

Paid nursing
home‐23
Paid nursing
home‐24

Verde
Corporation
Verde
Corporation
Kawashima
Corporation
Kawashima
Corporation‐ 41 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.

Property number

Paid nursing
home‐33
Serviced housing
for the elderly ‐1Serviced housing
for the elderly ‐2Complex of paid
nursinghomes,medical
service related
facilities,etc.‐1

Property name

Type of facility

Operator

Nichii
Carepalace
Company
Sompo CareInc.
Sompo Care
Inc.

Capacity(persons)(Note 1)

No. ofresidents(persons)(Note 1)

46

46

45

97.8

October 1, 2021

137

137

119

86.9

October 1, 2021

85

85

68

80.0

July 1, 2021

100.0

June 1, 2021

Nichii Home
Nishikokubunji

Paid nursing home

SOMPO CARE Sompo
no ie Awajiekimae
SOMPO CARE Sompo
no ie Kobekamisawa

Serviced housing
for the elderly
Serviced housing
for the elderly

SHIP Senri Building(Note 4)

Hospital, paid
nursing home withnursing home

GREEN LIFE Co.,
Ltd.

181

200

200

‐

‐

3,245

3,502

3,197

Total

Preparation date ofOccupancy
Property DisclosurerateStatement of(%)
Important Matters(Note 2)
(Note 3)

No. ofrooms(rooms)(Note 1)

91.3‐

(Note 1) “No. of rooms,” “Capacity” and “No. of residents” indicate figures based on figures stated in Property Disclosure Statement of Important Matters(hereinafter the “Property Disclosure Statement of Important Matters”) of paid nursing homes provided by the operators.
(Note 2) “Occupancy rate” indicates the occupancy rate obtained by dividing the number of residents by capacity, rounded to one decimal place.
(Note 3) “Preparation date of Property Disclosure Statement of Important Matters” indicates the date of application, reference date or preparation date statedon the document.
(Note 4) SHIP Senri Building is a property with a hospital and paid nursing home, and the above table provides an overview of the facilities related to its paid
nursing home.

‐ 42 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(iv) Overview of medical service‐related facilities, etc.
Property number

Medical service‐related facilities‐1

Property name

Niigata Rehabilitation Hospital

Operator

Medical Corporation AIKOKAI

Type of facility

Hospital

Subject of
medicaltreatment

Rehabilitation, orthopedic surgery,internal medicine, neurology, dental &dental and oral surgery

Facility criteria(Hospitalization
fee)

External
evaluation

Date ofestablishment

June 1990(established as Oyama Hospital, the precursor)

Authorized number 168 beds (general beds: 108 beds/convalescent‐of beds
stage beds: 60 beds)
Facility certification

Training facilities certified by the Japanese
Association of Rehabilitation Medicine

2nd floor (48 beds) Hospitalization fee of hospital ward for comprehensive community care 1
3rd floor (60 beds) Basic hospitalization fee for general hospital ward (acute hospitalization fee 7)
Medical management fee for comprehensive community care 1
4th floor (60 beds) Hospitalization fee of hospital ward for rehabilitation at recovery stage 1
Hospital certified by Japan Council for Quality Health Care (Certification number: JC1424‐3) 3rdG:Ver.1.1
Added function Rehabilitation function (Certification number: JC1424‐R2) Ver.3.0

Property
numberComplex of paid nursing homes,medical service related facilities,etc.‐1

Property nameSHIP Senri Building (Senri‐Chuo Hospital) (Note)

Operator

Medical Corporation Kyowakai

Date ofestablishment

October 2008

Type of facility

Hospital

Authorized numberof beds

400 beds (400 general beds)

Subject of
medicaltreatment

Facility criteria(Hospitalizatio
n fee)

Rehabilitation, orthopedics,
Training facilities certified by the Japaneseneurosurgery, surgery, internal medicine Facility certification
Association of Rehabilitation Medicine
and neurology
West 6th floor (25 beds) Palliative care hospital
East 6th floor (25 beds) Facilities for the disabled,
ward hospitalization fee 2
etc. 2 10:1 Basic hospitalization fee
West 5th floor (50 beds) Facilities for the disabled,
etc. 2 10:1 Basic hospitalization fee

East 5th floor (50 beds) Facilities for the disabled,
etc. 2 10:1 Basic hospitalization fee

West 4th floor (50 beds) Facilities for the disabled,
etc. 2 10:1 Basic hospitalization fee

East 4th floor (50 beds) Facilities for the disabled,
etc. 2 10:1 Basic hospitalization fee

West 3rd floor (50 beds) Facilities for the disabled,
etc. 2 10:1 Basic hospitalization fee

East 3rd floor (50 beds) Recovery phaserehabilitation ward hospitalization fee 1

West 2nd floor (50 beds) Recovery phaserehabilitation ward hospitalization fee 1
External
evaluation

Hospital certified by Japan Council for Quality Health Care (Certification number: JC2382) 3rdG:Ver.2.0(Note) SHIP Senri Building is a property with a hospital and paid nursing home, and the above table provides an overview of the facilities related to its hospital.

‐ 43 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(v) Earnings performance(Unit: thousands of yen)
Current fiscal period (from August 1, 2021, to January 31, 2022)
Property nameOperating revenue from real estate leasing
Rent revenue

Operating expenses from real estate leasing

Other
revenue

Property Outsourcing Repair Insurance
Other,
Depreciation
tax
expenses expenses expenses
net

NOI(Note 3)

AQUAMARINE
Nishinomiyahama

25,567

4,271

2,100

1,875

236

16,684400

58,459Bonsejour Chitose‐
funabashi

5,582

1,794

225

‐

112

3,048

401

21,400

Bonsejour Hino

5,070

1,240

214

‐

85

3,130

400

19,480

4,102

1,011

167

‐

75

2,447

400

16,161

8,402

1,816

213

‐

154

5,817

400

21,106

14,138

4,554

201

‐

355

8,627

400

39,571ASHEIM Hikarigaoka

16,122

3,824

381

42

212

11,260400

40,888ASHEIM
Bunkyohakusan

12,168

2,575

381

‐

129

8,680

400

38,700

SOMPO CARE La vie Re
Machidaonoji

46,925

5,950

780

783

392

38,618400

96,693

SOMPO CARE La vie Re
Azamino37,856

4,703

780

5,033

285

26,654400

73,997SAWAYAKA
Tachibanakan

26,582

2,665

1,200

‐

370

21,945400

47,22026,329

2,958

1,200

‐

273

21,498400

43,402SAWAYAKA Tagawakan

8,485

1,106

1,200

‐

119

5,659

400

12,858GOOD TIME HOME
Fudo‐mae

15,369

3,051

600

519

182

10,616400

46,247

Bonsejour Yotsugi

4,924

940

223

‐

73

3,286

400

20,755

6,519

1,376

371

‐

111

4,260

400

13,962

52,912

9,564

900

919

579

40,549400

114,037

GreenLife Moriguchi

38,816

6,919

1,363

4,169

379

25,583400

106,767

Hapine Kobe Uozaki
Nibankan

9,595

1,395

1,200

39

90

6,470

400

24,375Granda Tsuruma‐
Yamato

7,262

1,934

618

‐

152

4,158

400

27,052

Smiling Home Medice
Adachi

17,556

3,279

540

1,746

177

11,413400

59,064

AIKOEN ICHIBANKAN
Building

8,477

2,554

780

‐

112

4,630

400

22,814

Hanakotoba Minami

9,959

1,535

600

2,230

79

5,114

400

25,754

Hanakotoba Miura

9,853

1,548

600

1,086

88

6,129

400

16,676

Bonsejour Musashi‐
shinjoMedical Rehabilitation
Home Bonsejour
Hadanoshibusawa
Medical Rehabilitation
Home Bonsejour
KomakiSAWAYAKA Mekarikan

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

Not disclosed(Note 2)‐ 44 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Current fiscal period (from August 1, 2021, to January 31, 2022)
Property nameOperating revenue from real estate leasing
Rent revenue

Operating expenses from real estate leasing

Other
revenue

Property Outsourcing Repair Insurance
Other,
Depreciation
tax
expenses expenses expenses
net

NOI(Note 3)

SOMPO CARE La vie Re
Hama‐Kawasaki

18,845

3,433

2,770

350

206

11,684400

45,190

Hanakotoba Shin‐Yokohama

18,005

4,383

900

3,529

249

8,543

400

52,450

Hanakotoba Shin‐Yokohama II

5,939

2,499

600

286

92

2,061

400

10,934

Hanakotoba Odawara

9,157

1,364

600

984

99

5,709

400

24,151

Verde Minowa

25,991

5,190

1,020

‐

508

18,871

400

56,788

Verde Hotaka

26,692

2,174

1,020

2,270

249

20,578400

43,992

10,180

2,793

600

‐

119

6,265

401

45,585Sunny Life Kamakura

12,825

2,796

720

80

179

8,650

400

38,746

Nichii Home
Nishikokubunji

2,782

‐

660

90

92

1,540

400

19,897

SOMPO CARE Sompo
no ie Awajiekimae

27,244

4,909

510

128

298

20,998400

58,215

SOMPO CARE Sompo
no ie Kobekamisawa

17,209

2,900

510

499

183

12,715400

35,800Niigata Rehabilitation
Hospital

27,563

9,668

1,030

‐

387

15,977500

78,294

SHIP Senri Building

80,25927,500

1,500

‐

1,183

49,675400

341,218

701,277 142,184

29,283

26,664

8,683

479,559

14,903

1,858,718

Sunny Life Kita‐
ShinagawaTotal

Not disclosed(Note 2)2,080,436

2,069,514

10,921(Note 1)All figures indicated are rounded down to the nearest thousand yen.

(Note 2)

“Real estate lease business revenue,” “rent revenue” and “other revenue” of each property are not disclosed as consent for disclosure has not beenobtained from tenants. The total is the sum of amounts received as rent for the current fiscal period based on the lease agreements.

(Note 3)

“NOI” = Real estate lease business revenue – real estate lease business expenses + depreciation and amortization‐ 45 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(vi) Summary of appraisal report
HCM has obtained an appraisal report for each real estate in trust from one of the following: Rich Appraisal Institute Co.,
Ltd., The Tanizawa Sogo Appraisal Co., Ltd., Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd., JLL Morii
Valuation & Advisory K.K.
The following is a summary of the appraisal report for each real estate in trust acquired by HCM with January 31, 2022, as
the appraisal date. The real estate appraisal report only states judgments and opinions of the appraiser as of a specificpoint in time and does not guarantee the appropriateness, accuracy and feasibility of transactions at the presented
appraisal value. Rich Appraisal Institute Co., Ltd., The Tanizawa Sogo Appraisal Co., Ltd., Japan Real Estate Institute, Daiwa
Real Estate Appraisal Co., Ltd. and JLL Morii Valuation & Advisory K.K., which appraised the properties, have no special
interest in HCM.
Summary of Appraisal Report (Note 1)
DCF method
Appraisal Direct capitalization method
Appraisalvalue
NOI(millions of IndicatedIndicated
Discount(millions
Capitalization
Terminal
yen)
value
value
rate
rate
capitalization of yen)(millions of(millions of(%)(Note 3)(%)
rate (%)
yen)
yen)(Note 2)

Appraisal
NOI
yield
(%)
(Note 4)

Property number

Property nameAppraisalcompany

Paid nursing
home‐1

AQUAMARINE
Nishinomiyahama

Rich Appraisal
Institute Co.,
Ltd.

2,100

2,110

5.2

2,090

4.9

5.4

117

6.0

Paid nursing
home‐2

Bonsejour
Chitose‐funabashi

The Tanizawa
Sogo Appraisal
Co., Ltd.

974

994

4.4

966

4.5

4.6

48

5.9

Paid nursing
home‐3

Bonsejour Hino

The Tanizawa
Sogo Appraisal
Co., Ltd.

818

832

4.8

812

4.9

5.0

43

6.0

Paid nursing
home‐4

BonsejourMusashi‐shinjo

The Tanizawa
Sogo Appraisal
Co., Ltd.

643

653

5.1

638

5.2

5.3

39

6.8

The Tanizawa
Sogo Appraisal
Co., Ltd.

850

864

5.0

844

5.1

5.2

47

6.4

The Tanizawa
Sogo Appraisal
Co., Ltd.

1,450

1,460

5.5

1,440

5.6

5.7

92

7.3

Paid nursing
home‐5

Paid nursing
home‐6

MedicalRehabilitation
Home Bonsejour
Hadanoshibusawa
MedicalRehabilitation
Home Bonsejour
Komaki

Paid nursing
home‐7ASHEIM
Hikarigaoka

Japan Real
EstateInstitute

1,520

1,530

4.7

1,500

4.5

4.9

76

5.5

Paid nursing
home‐8ASHEIM
Bunkyohakusan

Japan Real
EstateInstitute

1,680

1,700

4.3

1,660

4.1

4.5

74

5.1

Paid nursing
home‐9SOMPO CARE La
vie ReMachidaonoji

Japan Real
EstateInstitute

3,940

3,990

4.7

3,890

4.5

4.9

193

5.3

Paid nursing
home‐10

SOMPO CARE La
vie Re Azamino

Japan Real
EstateInstitute

3,300

3,350

4.5

3,250

4.3

4.7

156

5.1

Paid nursing
home‐11SAWAYAKA
Tachibanakan

Japan Real
EstateInstitute

1,550

1,560

5.5

1,530

5.3

5.7

93

6.1

Paid nursing
home‐12SAWAYAKA
Mekarikan

Japan Real
EstateInstitute

1,430

1,440

5.6

1,410

5.4

5.8

85

6.2

Paid nursing
home‐13SAWAYAKA
Tagawakan

Japan Real
EstateInstitute

383

386

5.7

380

5.5

5.9

25

6.4

Paid nursing
home‐14

GOOD TIMEHOME Fudo‐mae

Japan Real
EstateInstitute

1,990

2,020

4.3

1,960

4.1

4.5

91

5.2

‐ 46 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Summary of Appraisal Report (Note 1)
DCF method
Appraisal Direct capitalization method
Appraisalvalue
NOI(millions of IndicatedIndicated
Discount(millions
Capitalization
Terminal
yen)
value
value
rate
rate
capitalization of yen)(millions of(millions of(%)(Note 3)(%)
rate (%)
yen)
yen)(Note 2)

Appraisal
NOI
yield
(%)
(Note 4)

Property number

Property nameAppraisalcompany

Paid nursing
home‐15

Bonsejour Yotsugi

The Tanizawa
Sogo Appraisal
Co., Ltd.

886

902

4.7

879

4.8

4.9

48

5.8

Paid nursing
home‐16

Medical Home
Bonsejour Itami

The Tanizawa
Sogo Appraisal
Co., Ltd.

557

566

5.1

553

5.2

5.3

36

7.1

Paid nursing
home‐17

Kobe Gakuentoshi
Building

Paid nursing
home‐18

GreenLife
Moriguchi

Paid nursing
home‐19

Hapine Kobe
Uozaki Nibankan

Paid nursing
home‐20

Daiwa Real
EstateAppraisal Co.,Ltd.
Daiwa Real
EstateAppraisal Co.,Ltd.
Daiwa Real
EstateAppraisal Co.,
Ltd.

4,540

4,600

4.6

4,520

4.4

4.8

227

5.2

4,500

4,560

4.5

4,470

4.3

4.7

220

5.3

995

1,010

4.6

988

4.4

4.8

48

5.2

Granda Tsuruma‐
YamatoThe Tanizawa
Sogo Appraisal
Co., Ltd.

1,060

1,070

4.7

1,050

4.8

4.9

53

5.3

Paid nursing
home‐21

Smiling Home
Medice Adachi

The Tanizawa
Sogo Appraisal
Co., Ltd.

2,500

2,530

4.6

2,480

4.7

4.8

120

5.3

Paid nursing
home‐22

AIKOENICHIBANKAN
Building

The Tanizawa
Sogo Appraisal
Co., Ltd.

860

864

5.2

858

5.3

5.4

45

5.8

Paid nursing
home‐23

Hanakotoba
MinamiJapan Real
EstateInstitute

1,240

1,250

4.4

1,220

4.2

4.6

56

5.2

Paid nursing
home‐24

Hanakotoba
Miura

The Tanizawa
Sogo Appraisal
Co., Ltd.

668

676

4.8

664

4.9

5.0

35

5.6

Paid nursing
home‐25

SOMPO CARE La
vie Re Hama‐
Kawasaki

JLL Morii
Valuation &Advisory K.K.

1,810

1,840

4.6

1,780

4.4

4.8

89

5.2

Paid nursing
home‐26

Hanakotoba Shin‐Yokohama

Japan Real
EstateInstitute

2,330

2,360

4.3

2,300

4.1

4.5

109

5.2

Paid nursing
home‐27

Hanakotoba Shin‐Yokohama II

Japan Real
EstateInstitute

383

385

5.0

380

4.8

5.2

21

5.8

Paid nursing
home‐28

Hanakotoba
Odawara

The Tanizawa
Sogo Appraisal
Co., Ltd.

947

961

4.9

941

4.8～5.0

5.1

49

5.6

Paid nursing
home‐29

Verde Minowa

1,700

1,710

5.0

1,690

4.8

5.2

109

6.7

Paid nursing
home‐30

Verde Hotaka

1,430

1,440

5.4

1,420

5.2

5.6

91

6.9

Paid nursing
home‐31

Sunny Life Kita‐
Shinagawa

2,040

2,070

4.3

2,020

4.1

4.5

90

4.9

Daiwa Real
EstateAppraisal Co.,Ltd.
Daiwa Real
EstateAppraisal Co.,Ltd.
Daiwa Real
EstateAppraisal Co.,Ltd.

‐ 47 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
Summary of Appraisal Report (Note 1)

Property number

Appraisalcompany

Property name

DCF method
Appraisal Direct capitalization method
Appraisalvalue
NOI(millions of IndicatedIndicated
Discount(millions
Capitalization
Terminal
yen)
value
value
rate
rate
capitalization of yen)(millions of(millions of(%)(Note 3)(%)
rate (%)
yen)
yen)(Note 2)

Appraisal
NOI
yield
(%)
(Note 4)

Paid nursing
home‐32

Sunny Life
Kamakura

The Tanizawa
Sogo Appraisal
Co., Ltd.

1,580

1,600

4.5

1,570

4.6

4.7

76

5.3

Paid nursing
home‐33

Nichii Home
Nishikokubunji

Daiwa Real
EstateAppraisal Co.,
Ltd.

761

772

4.3

756

4.1

4.5

36

5.0

SOMPO CARE
Serviced housing
Sompo no ie
for the elderly ‐1
Awajiekimae

Japan Real
EstateInstitute

2,210

2,230

5.1

2,180

4.9

5.3

116

6.0

SOMPO CARE
Serviced housing
Sompo no ie
for the elderly ‐2
Kobekamisawa

Japan Real
EstateInstitute

1,360

1,370

5.1

1,340

4.9

5.3

72

6.0

Niigata
Medical service‐
Rehabilitation
related facilities‐1
Hospital

Japan Real
EstateInstitute

2,300

2,310

6.5

2,290

6.3

6.7

153

7.4

Complex of paid
nursing
SHIP Senrihomes,medical
Building
service related
facilities,etc.‐1

The Tanizawa
Sogo Appraisal
Co., Ltd.

14,20014,4004.5

14,1004.5～4.6

4.7

679

5.2

73,48574,365―72,819

―

―

3,773

5.6

Total

(Note 1) “Appraisal value” is based on the appraisal report with January 31, 2022, as the appraisal date.
(Note 2) “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 backto present value, and figures used by respective appraisal organizations are shown. For Hanakotoba Odawara, 4.8% for the first fiscal year and 5.0%
from the second fiscal year, and for SHIP Senri Building, 4.5% for the first and second fiscal years and 4.6% from the third fiscal year.
(Note 3) “Appraisal NOI” indicates net operating income obtained by direct capitalization method stated in the real estate appraisal report with January 31,
2022, as the appraisal date and is rounded down to the nearest million yen. In addition, NOI is revenue before deducting depreciation and differsfrom 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 this document.
(Note 4) “Appraisal NOI yield” is calculated by the formula below and rounded down to one decimal place. In the column of total appraisal NOI yield, theaverage appraisal NOI yield, which is calculated by dividing the total appraisal NOI of the respective real estate in trust by the total acquisition price,
is shown (rounded down to the first decimal place). Appraisal NOI yield = Appraisal NOI of the respective real estate in trust / Acquisition price of therespective real estate in trust‐ 48 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(vii) Information on major tenants“Major tenants” refers to tenants whose leased areas occupy 10% or more of total leased area of the entire portfolio at
the end of the current fiscal period (on January 31, 2022). The annual rent and tenant leasehold and security deposits ofeach property are not disclosed as consent from the tenants has not been obtained.
LeasedShareContract
Contract renewal method,
area
Tenant name
Property name(%)
expiration date
etc.
2
(m )
(Note 2)
(Note 3)(Note 4)(Note 1)
Cancellation not allowed
AQUAMARINEMay 31,through to the end of the5,189.42
2.8
Nishinomiyahama
2037
contract
Cancellation allowed if
Kobe Gakuentoshi Building
March 28,
12,636.48
6.7
requested 1 year prior or(Hapine Kobe Gakuentoshi)
2041
earlier.
GREEN LIFE
Cancellation allowed if
October 19,
Co., Ltd.
GreenLife Moriguchi
8,356.85
4.4
requested 6 months prior or
2039
earlier.
Cancellation allowed if
Hapine Kobe Uozaki
March 28,
requested 1 year prior or
1,772.89
0.9
Nibankan
2041
earlier.
Total
27,955.64
14.9――
Cancellation not allowed
May 24,
Bonsejour Chitose‐funabashi
2,342.17
1.2
through to the end of the2026
contract
Cancellation not allowed
May 24,through to the end of theBonsejour Hino
1,984.17
1.1
2026
contract
Cancellation not allowed
November 23,
Bonsejour Musashi‐shinjo
1,710.43
0.9
through to the end of the2026
contract
Cancellation not allowed
Medical Rehabilitation HomeMay 21,
3,435.79
1.8
through to the end of theBonsejour Hadanoshibusawa
2027
contract
Benesse Style
Cancellation not allowed
Medical Rehabilitation HomeMay 21,
Care Co., Ltd.
8,858.49
4.7
through to the end of theBonsejour Komaki
2027
contract
Cancellation not allowed
January 5,
through to the end of theBonsejour Yotsugi
1,962.89
1.0
2026
contract
Cancellation not allowed
Medical Home Bonsejour
May 21,2,129.87
1.1
through to the end of the
Itami
2027
contract
Cancellation allowed if
March 31,
Granda Tsuruma‐Yamato
3,427.08
1.8
requested 6 months prior or
2022
earlier.
Total
25,850.89
13.8――
Midterm cancellation not
SOMPO CARE La vie Re
October 31,
7,720.17
4.1
allowed for 15 years from
Machidaonoji
2027
the start date of leasing.
Midterm cancellation not
SOMPO CARE La vie Re
June 27,
5,789.25
3.1
allowed for 15 years from
Azamino2027
the start date of leasing.
Midterm cancellation not
SOMPO CARE La vie Re
December 31,
allowed for 15 years from2,535.29
1.3
2027
Sompo Care Inc. Hama‐Kawasaki
the start date of leasing.
Cancellation allowed if
SOMPO CARE Sompo no ie S
July 31,5,745.15
3.1
requested 1 year prior or
Awajiekimae
2034
earlier.
Cancellation allowed if
SOMPO CARE Sompo no ie S
July 31,
4,058.35
2.2
requested 1 year prior or
Kobekamisawa
2034
earlier.
Total
25,848.21
13.8――
Midterm cancellation not
October 27,
24,813.85
13.2
allowed for 15 years from
Ship Healthcare SHIP Senri Building2038
the start date of leasing.
Estate Inc.
Total
24,813.85
13.2――‐ 49 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(Note 1) “Leased area” indicates the area stated in lease agreements concluded with each tenant as of January 31, 2022. When a master leaseagreement has been concluded, the area for which a lease agreement has been concluded with end tenants and actually leased is shownfor properties for which a pass‐through master lease agreement under which rent from end tenants is received as is, in principle, isconcluded.
(Note 2) “Share” indicates the area of each property leased to its major tenants as a percentage of the total leased area of the properties owned
by HCM as of January 31, 2022, and is rounded to the first decimal place.
(Note 3) “Contract expiration date” indicates the contract expiration date stated in the lease agreement.
(Note 4) “Contract renewal method, etc.” indicates the details of contract renewal method, etc. stated in the lease agreement.

(viii) Portfolio overview (portfolio diversification)(a) By typeClassification

Paid nursing home

Number ofproperties

Period‐end
appraisal value(millions of yen)
(Note 1)

Share (%)
(Note 2)

33

48,94753,415

73.0

2

3,130

3,570

4.7

1

2,060

2,300

3.1

1

12,92014,20019.3

3767,05773,485100.0Serviced housing for theelderly
Medical service‐related
facilities, etc.
Complex of paid nursing
homes,medical service
related facilities,etc.
Total

Acquisition price(millions of yen)

(Note 1) “Period‐end appraisal value” indicates amounts stated in the appraisal report with appraisal date of January 31, 2022, prepared by realestate appraisers of Japan Real Estate Institute, The Tanizawa Sogo Appraisal Co., Ltd., Rich Appraisal Institute Co., Ltd., Daiwa Real
Estate Appraisal Co., Ltd. and JLL Morii Valuation & Advisory K.K., based on the Articles of Incorporation of HCM and the rules set by theInvestment Trusts Association, Japan. The same shall apply hereinafter.
(Note 2) “Share” refers to the percentage of the total acquisition price, and is shown rounded to the first decimal place. The same shall apply
hereinafter.

(b) By area
Classification/region
Three Major Metropolitan
Areas
Tokyo Metropolitan
Area

Number ofproperties

Acquisition price(millions of yen)

Period‐end
appraisal value(millions of yen)

Share (%)

30

57,98963,83286.5

2128,80531,92043.0

Kinki Area

8

27,91430,462

41.6

Chubu Area

1

1,270

1,450

1.9

Core Cities

5

7,350

7,840

11.0

Other Areas

2

1,718

1,813

2.6

37

67,05773,485

100.0

Total

‐ 50 ‐

This translation of the original Japanese Financial Report (kessan tanshin ) is provided solely for information purposes.
Should there be any discrepancy between this translation and the Japanese original, the latter shall prevail.
(c) By number of rooms
The table below shows diversification in accordance with the number of rooms at homes and facilities for the elderly
concerning assets which fall under the category of homes and facilities for the elderly (excluding medical service‐related facilities, etc.) among assets held.
Period‐end appraisal
Number of
Acquisition price
Number of rooms
value
Share (%)
properties(millions of yen)(millions of yen)
100 rooms or more

12

26,98529,38051.8

50 rooms or more, but lessthan 100 rooms

18

21,661

23,84941.6

Less than 50 rooms

5

3,431

3,756

6.6

Total

35

52,07756,985100.0(Note)

Well House Senri‐Chuo (No. of rooms: 181) operated by GREEN LIFE Co., Ltd., a tenant at SHIP Senri Building (paid nursing home section),
which is a complex of paid nursing home, medical service‐related facilities, and other facilities, is not included in the above table since
it is difficult to calculate the acquisition prices and period‐end appraisal values separately for the paid nursing home section and the
medical service‐related facilities, etc. section.

(2) Status of Capital Expenditures
a. Schedule of Capital Expenditures
Of capital expenditures associated with repair work, etc. currently planned for assets owned by HCM as of January
31, 2022, the following are the major estimated amounts. The estimated construction costs include the portion
separately charged to expenses in accounting.
Property name
(Location)
ASHEIM Hikarigaoka(Nerima‐ku, Tokyo)
Niigata Rehabilitation Hospital(Niigata‐shi, Niigata)GreenLife Moriguchi(Moriguchi‐shi, Osaka)
SAWAYAKA Tagawakan(Tagawa‐shi, Fukuoka)
SAWAYAKA Tagawakan(Tagawa‐shi, Fukuoka)b.

PurposeScheduled period

Renewal of air conditioners incommon areas
Renovation of exterior walls ofmachine room and storage
room for hazardous materials
Renewal of flooring materials
for corridors on floors 3‐8

From: May 2022
To: July 2022

30,000－－

From: April 2022
To: July 2022

15,200－－15,000

－

－

5,830

－

－

4,180

－

－

Rooftop waterproofing
Renewal of bathroom tile

From: May 2022
To: July 2022
From: May 2022
To: July 2022
From: June 2022
To: July 2022

Capital Expenditures During the Period
Of construction work falling under the category of capital expenditures conducted in the current fiscal period for
assets owned by HCM as of January 31, 2022, the following are the major amounts. The capital expenditures in thecurrent fiscal period amounted to 128,460 thousand yen. Combined with the repair expenses separately charged
to expenses amounting to 26,664 thousand yen, HCM implemented a total of 155,124 thousand yen of
construction work.

Property name
(Location)
SOMPO CARE Sompo no ie Awajiekimae(Osaka‐shi, Osaka)
SOMPO CARE Sompo no ie S
Kobekamisawa(Kobe‐shi, Hyogo)
AQUAMARINE Nishinomiyahama(Nishinomiya‐shi, Hyogo)
SAWAYAKA Mekarikan(Kitakyushu‐shi, Fukuoka)

Construction costs(thousands of yen)

PurposeScheduled period

Renovation of exterior walls

From: October 2021
To: January 2022

30,920Renovation of exterior walls

From: November 2021
To: January 2022

23,617

Renewal of 66 air conditioner
units in rooms
Renewal of air conditioners incommon areas on floors 1‐3

From: November 2021
To: January 2022
From: November 2021
To: November 2021‐‐

Other real estate, etc.
Total

c.

Estimated construction costs(thousands of yen)
Payment
Total
Total
duringamountamountperiod already paid

8,217
6,566
59,138
128,460

Cash Reserves for Long‐Term Repair Plans
Not applicable.
‐ 51 ‐