Samty Residential Investment Corporation(Securities Code: 3459)

Financial Resultsfor Fiscal Period Ended
July 2022(The 14th Fiscal Period)
Friday, September 16, 2022

Table of Contents
１

Financial Highlights

4Management Summary

４

Financial Results for the Fiscal Period Ended July 2022 (14th
Fiscal Period)

５

Management Forecast for the Fiscal Period Ending January 2023
(15th Fiscal Period) and Fiscal Period Ending July 2023 (16th
Fiscal Period)

32

Factors for Change in Distribution per Unit

６

Factors for Change in Distribution per Unit

33

Change in Distribution per Unit

７

Growth Strategy

34

Change in Asset Size and Ongoing Strategic Management

８

Growth Support Through Sponsor Support

35

Enhancing Portfolio Quality and Realizing Unrealized Gains
Through Continuous Asset Replacement

９

5
２

3

Management Forecasts and Growth Strategy
for the 15th and 16th Fiscal Periods

Management Status for the 14th Fiscal Period

Sustainability Initiatives
The Basic Philosophy of Samty Residential Investment
Corporation

37

Overview of Asset Replacement for the 14th Fiscal Period

１１Sustainability Initiatives

38

Acquired Assets for the 14th Fiscal Period

12

Sustainability Initiatives (1) -Environment-

39

Portfolio Overview

13

Sustainability Initiatives (2) -Social-

41

Change in Occupancy Rates

14

Sustainability Initiatives (3) -Governance-

43

Change in Unit Rent

15

Trends of Rent Upon Replacement and Renewal

16

Change in Other Data

１7

Examples of Initiatives to Improve the Value of Owned
Properties

１8

Financial Highlights

20

Overview of August 2022 Capital Increase Through Public
Offering and Third-Party Allotment

6

Appendix
Features of Samty Residential Investment Corporation andPortfolio Development Policy

45

Distribution Policy

46

Sponsor Structure of Samty Residential Investment Corporation

47

Overview of Samty Residential Investment Corporation

48

Overview of Asset Management Company

49

Overview of Main Sponsor

50

Overview of Asset Acquisition With Capital Increase ThroughPublic Offering and Third-Party Allotment

23

Business Model of the Main Sponsor

51

Changes in Portfolio

24

Market Environment Concerning Residence Investments

52

Advantages of the Sponsor Brand “S-RESIDENCE”

25

Unitholder Information

56

Overview of Acquired Assets

26

Portfolio List (as of the end of the 14th fiscal period)

57

Portfolio Map after Asset Acquisition

29

Balance Sheet

60

Overview of New Borrowings

30

Statement of Income

61

Statement of Cash Flows

62

Change in Investment Unit Price63

1. Financial Highlights

Management Summary
Financial Management

Internal Growth

External Growth New acquisition (February 2022)

 Occupancy rate

Number of properties acquired: 4 properties(acquisition price: 3.7 billion yen)
 Sale of properties(February and March 2022)

 Evaluation by rating agency

Period average occupancy rate: 96.0%
 Unit rent after adjustment (Note 1)(Change in unit rent for 159 properties owned asof the end of January 2022)

Number of properties sold: 4 properties(disposition price: 2.8 billion yen)
Gain on sale: 376 million yen

The rating review conducted by JCR in April
2022 raised our rating to “A (Stable)” Implementation of new borrowings andrefinancing (February and July 2022)

・ Borrowing amount: 5.85 billion yen
・ Reduction of financial costs
・ Extension and leveling of maturity years

End of the fiscal period ended
January 2022: 101.9
End of the fiscal period ended
July 2022: 102.0
SS

Change in Distribution per Unit

Change in Asset Size

Distribution in excess of earnings
Temporary factors (refund of consumption tax)
Temporary factors (gain on sale of properties)
Temporary factors (effect of fixed asset tax and city planning tax)
Distribution excluding temporary factors(yen / unit)
4,000(100 million yen)
1,800

3,333
192
3,000

2,735

2,764

246

2,752

2,713

553

364

383

490

30

59

6

333
47

351

171
1

(Effectof fixed
asset tax
and cityplanning
tax)(Effectof fixed
asset tax
and cityplanning
tax)(Effectof fixed
asset tax
and cityplanning
tax)(Effectof fixed
asset tax
and cityplanning
tax)

2,263

2,199

2,322

2,279

Jan. 2021(11th FP)Jul. 2021(12th FP)Jan. 2022(13th FP)Jul. 2022(14th FP)

2,000

1,000

3，021

295

1,500

1,184

1,182

Jan. 2021(11th FP)Jul. 2021(12th FP)

1,200

(Effectof fixed
asset tax
and cityplanning
tax)

1,463

1,476

Jan. 2022(13th FP)Jul. 2022(14th FP)

1,626

1,626

Jan. 2023(15th FP)Jul. 2023(16th FP)

900

2,372

2,362

Jan. 2023(15th FP)Jul. 2023(16th FP)

(forecast)(forecast)

0600(forecast) (forecast)(Note 1) Indexed by regarding the unit rent after adjustment upon listing (end of June 2015) as 100.
(Note 2) The above figures are rounded down to the nearest whole number and ratios are rounded off to
one decimal place. The same applies hereinafter.

4

Financial Results for the Fiscal Period Ended July 2022 (14th FP)(unit: million yen)

(1) Fiscal
period ended
January 2022
(13th FP)
Results

Vs. Forecast ((3)-(2)) (unit: million yen)

Fiscal period ended July 2022 （14th fiscal period)(2) Forecast(3) Results

Comparison
with previous
fiscal period（(3)－(1)）

Comparison
with forecast（(3)－(2)）

Operatingrevenue

Increase in gain on sale of realestate+38

Decrease in leasing businessrevenue-29(Rent business expenses)

Operating revenue

Operating expenses

4,842
2,53３

5,383
2,816

5,408
2,85９

+25
+42

+565
+325

Operatingexpenses

Increase in repair expenses andrestoration costs+19

Increase in utilities expenses＋10(Selling, general and administrative expenses)

Operating income

2,3０９

2,566

2,5４９

-1７

+239

Ordinary income

1,83３

2,136

2,136

＋０

+303

Net income

1,83２

2,135

2,135

＋０

+303

Total distribution
per unit

2,764 yen

3,020 yen

3,021 yen

+1 yen+257 yen

Distribution per
unit

2,381 yen

2,774 yen

2,775 yen

+1 yen+394 yen

Distribution inexcess of earnings
per unit

Decrease in administrative
service expenses(Non-operating expenses)
Ordinary
incomePayout Ratio

Decrease in borrowing-related
expenses-15

Vs. 13th Fiscal Period ((3)-(1)) (unit: million yen)
Operatingrevenue

Increase in gain on sale ofproperties＋376

Increase in revenues fromrents and common service fees

+105

(Rent business expenses)

383 yen

246 yen

246 yen±0 yen-137 yen
Operatingexpenses

Number ofinvestment units
issued andoutstanding-6

Increase in taxes and dues
(fixed asset tax and city
planning tax)

＋65

Increase in leasing promotion
expenses＋61

Increase in restoration costs+42(Selling, general and administrative expenses)

769,626 units

76.2%

769,626 units

75.0%

769,626 units

74.5%±０ units-0.5％±０ units-1.7％

Increase in asset management
fee

＋80

Increase in property survey
expenses＋１5(Non-operating expenses)

NAV per unit

Number of properties

111,307 yen-

113,947 yen-+2,640 yen

159

159

159

±０

±０

properties

properties

properties

properties

properties

Ordinary
incomeDecrease in borrowing-related
expenses-64

5Factors for Change in Distribution per Unit
Factors for Change in Forecast and Results for the Fiscal Period Ended July 2022 (14th FP)
Increase in gain onsale of properties

Decrease in NOI
after depreciation

Decrease in selling, generaland administrative expenses

Decrease infinancial costs

Other

-９１

＋19

+21

＋2

(yen / unit)

3,020

Distribution
in excess ofearnings

246

Distribution

2,774

2,775

Jul. 2022(14th FP) Forecast

Jul. 2022(14th FP) Results

+50

3,021
246

Factors for Change in Results for the Fiscal Period Ended January 2022 (13th Fiscal Period) andthe Fiscal Period Ended July 2022 (14th Fiscal Period)
Increase in gain on Decrease in NOI after Increase in selling,sale of properties
depreciation
general andadministrative expenses-58(yen / unit)

2,764
Distribution
in excess ofearnings

+490

Other

+8３

-1

Decrease in distribution
in excess of earnings

-137

3,021
246

383
Temporaryfactors

Distribution-１２０

Decrease infinancial costs

2,775

2,381

Jan. 2022(13th FP) Results

Jul. 2022(14th FP) Results

6Change in Distribution per Unit
Profit distribution per unit excluding temporary factors is expected to grow through continuous external growth
Change in Distribution per Unit and Payout Ratio
Distribution excluding
temporary factors(yen / unit)

Distribution excluding
temporary factors (forecast)

4,000

Temporary factors (effect of property
tax and city planning tax)
Temporary factors (effect on property
tax and city planning tax) (forecast)Temporary factors (gainon sale of properties)

Temporary factors (refundof consumption tax)

Distribution in excess of earnings
Distribution in excess of earnings(forecast)

3,333
3,000

2,877

2,834

347

391

189
51

193
3

2,000

1,000

2,290

(Effect of
fixed
asset tax
and cityplanning
tax)

192
295
553
30

2,263

2,247

3,021
2,735
364
171
1
(Effect of
fixed
asset tax
and cityplanning
tax)

2,764
383
59

2,322

2,199

246
490
6
(Effect of
fixed
asset tax
and cityplanning
tax)

2,752

2,713

333

351

47

2,372

2,362

Jan. 2023(15th FP)
(forecast)

Jul. 2023(16th FP)
(forecast)Aiming for
growth throughexternal growth

2,279

0

Jan. 2020(9th FP)Jul. 2020(10th FP)Jan. 2021(11th FP)Jul. 2021(12th FP)

75.4%

75.6%

75.4%

74.9%

73.7%

74.2%

Jan. 2022(13th FP)Jul. 2022(14th FP)

Change in Payout Ratio
80.0%

50.0%

76.2%
74.5%

74.3%

74.0%

75.8%
70.0%

73.6%

73.0%

74.0%
35.0%

71.0%
69.2%
30.7%

30.0%

28.5%

27.0%

26.0%

60.0%

27.0%
20.0%

19.2%
15.0%
50.0%

2020年1月期（第9期）

2020年7月期（第10期）

2021年1月期（第11期）

Payout Ratio (leftaxis)
2021年7月期
2022年1月期
2022年7月期
2023年1月期
Payout Ratio (excluding temporary factors) (left axis)（第12期）（第13期）（第14期）（第15期）
Ratio of distribution in excess of earnings to depreciation (right axis)

5.0%

2023年7月期（第16期）

7

Change in Asset Size and Ongoing Strategic Management
Realize the expansion of asset size and improvement of portfolio quality through asset acquisitions by way of
public offering and third-party allotment, asset replacements, etc.
Change in Asset Size (Note)[April 2022]

JCR rating outlook raised to A (Stable)
Aim for asset size of[June 2022]
Asset Size (left axis)

200 billion yen

Included in the FTSE EPRA Nareit

Number of rentable units (right axis)

Global Real Estate Index Series
12,0002,000

11,179PO: Public offering

TPA: Capital increase throughthird-party allotment

11,179April 2021
JCR rating outlook: Replacement

9,961

raised to A- (Positive)

Asset size reached
100 billion yen

10,036
10,0001,500

8,306 8,279

March 2018
Obtained a ratingfrom JCR
A- (Stable)

7,566

6,334

7,644

8,000

6,487

5,920
6,000

1,000

1,626

3,754

1,463

3,754 3,754

1,626

1,476
4,000

1,184
1,089

1,182

1,100

500

2,345 2,345
815

882

908
2,000

515

(100
million yen) 0

Number ofproperties

515

309

309

PO

Jan. 2016(1st FP)Jul. 2016(2nd FP)Jan. 2017(3rd FP)Jul. 2017(4th FP)

29

29

49

49

515

TPA

PO
TPA

PO
TPA

TPA

TPA

PO

Jan. 2018(5th FP)Jul. 2018(6th FP)Jan. 2019(7th FP)Jul. 2019(8th FP)Jan. 2020(9th FP)Jul. 2020(10th FP)Jan. 2021(11th FP)Jul. 2021(12th FP)Jan. 2022(13th FP)Jul. 2022(14th FP)

49

82

92

96

117

118

132

132

159

１5９

(Note) All of the above figures are as of the end of each fiscal period.

Jan. 2023
Jul. 2023(15th FP)
(16th FP)(assumption) (assumption)178

0 (unit)1788

Improving Portfolio Quality and Realizing Unrealized Gains
Through Continuous Asset Replacement
Continuous asset replacement beginning in the fiscal period ended January 2019 (7th FP) has promoted enhanced
profitability and a rejuvenated average building age, while realizing unrealized gains

Acquisition

Continuous Asset Replacement Utilizing Sponsor Support

Total
acquisition
price
Total appraisal
value
Averagebuilding age

Jan. 2019(7th FP)Jul. 2019(8th FP)Jan. 2020(9th FP)Jul. 2020(10th FP)Jan. 2021(11th FP)Jul. 2021(12th FP)Jan. 2022(13th FP)Jul. 2022(14th FP)8,127 million yen

5,510 million yen

18,872 million yen

1,784 million yen

11,828 million yen

1,787 million yen

28,104 million yen

3,752 million yen

8,380 million yen

5,534 million yen

19,084 million yen

1,828 million yen

11,944 million yen

1,810 million yen

28,396 million yen

3,827 million yen

3.9 years

2.8 years

11.2 years

13.7 years

11.2 years

10.6 years

8.8 years

0.6 years

Disposition

Improve portfolio quality by replacing properties that are less competitive or whose repair costs were expected toincrease with highly profitable properties or newly built properties
Total
disposition
price
Total appraisal
value
Averagebuilding age

Portfolio averagebuilding age

1,600 million yen

3,300 million yen

830 million yen

856 million yen

3,835 million yen

2,087 million yen-

2,887 million yen

1,590 million yen

3,270 million yen

830 million yen

856 million yen

3,710 million yen

2,087 million yen-

2,809 million yen

10.8 years

11.5 years

11.9 years

14.1 years

16.4 years

13.3 years-

17.2 years

9.0 years

9.1 years

9.9 years

10.5 years

10.9 years

11.3 years

11.3 years

11.4 years

Distribution excluding gain on sale ofproperties and gain on consumption tax refund

295

Distribution per unit(yen)Gain on sale of properties
Gain on consumption
tax refund

Returning unrealized gain to unitholders
295

848

360

189

193

253

553

2,656

2,485

490

171

Initial forecast

2,700

2,716

Announced ResultsonMarch 15,
2018

2,685

2,580

Announced Resultson
September 14,
2018

2,672

2,688

Announcedon
March 15,
2019

Results

2,680

2,641

Announced Resultson
September 13,
2019

Announced ResultsonMarch 13,
2020

2,725

2,564

Announced Resultson
September 15,
2020

2,673

2,764

Announced ResultsonMarch 12,
2021

2,644

2,531

Announced Resultson
September 15,
2021(Note 1) The numerical value at the time of obtaining the appraisal report is shown.
(Note 2) “Average building age” is calculated as the weighted average of the building ages at the time of acquisition or disposition based on the acquisition price, and rounded off to the first decimal place.

92. Management Status for the 14th Fiscal Period

Overview of Asset Replacement for the 14th Fiscal Period

External Growth

In February and March 2022, asset replacements were implemented, which significantly rejuvenated the averagebuilding age, improved the portfolio quality including profitability, and realized unrealized gains throughdisposition at a price above the appraisal value
Acquisition (4 properties)

Disposition (4 properties)
Disposition dateFebruary 28 andMarch 24, 2022

Acquisition dateFebruary 25 and 28, 2022

Averagebuilding age (Note 1)

0.6 years

Acquisition price

2,493 million yen

Acquisition price

3,752 million yen

Appraisal NOI
total (Note 2)

164 million yen

Disposition price

2,887 million yen

No. of rentable units

235 units

4.4％

Average buildingage (Note 1)

Average appraisal NOI
yield (Note 2)

17.2 years

Gain from
disposition

376 million yen

Decided on property disposition after
comprehensively considering future repair
expenses and capital expenditures due toage, individual property factors, and rental
and trading market trends in the surroundingarea, etc.

Major regional cities

Other regional cities

Greater Tokyo area

(1 property)(2 properties)(1 property)

S-FORT
Taisho riviere

S-FORT Ichinomiya
HonmachiS-RESIDENCE
Senrioka

S-RESIDENCE
Kitasenju reiz

(Taisho-ku, Osaka-shi)(Ichinomiya-shi, Aichi)(Settsu-shi, Osaka)(Adachi-ku, Tokyo)

540 million yen

1,012 million yen

1,200 million yen

557 million yen

1,050 million yen

1,210 million yen

48 units

75 units

46 units

August 2021

September 2021

September 2021

5.2%

4.6%

4.0%

Replacement

Major regional cities (2 properties)

S-FORT Gakuenmae S-FORT Kamiotai(Toyohira-ku, Sapporo-shi) Nishi-ku, Nagoya-shi

Greater Tokyo area (2 properties)

S-FORT
Itabashi Shimura

S-FORT
Noborito（Itabashi-ku, Tokyo）(Tama-ku, Kawasaki-shi)

Acquisition
1,000 million yen
priceAppraisal
1,010 million yen
value
No. ofrentable
66 units
units
Completion
February 2021
time
Appraisal
4.2%
NOI yield(Note 1) “Average building age” is calculated by weighted average of the building age based on the acquisition price as of February 28, 2022, and is rounded off to the first decimal place.
(Note 2) The value at the time of obtaining the appraisal report is shown. “Appraisal NOI total” is the sum of the amounts shown in the real estate appraisal report. “Average appraisal NOI yield” is the figure calculated by dividing
the appraisal NOI by the acquisition price, rounded off to one decimal place. Please note “Average appraisal NOI yield” is a value calculated by the Asset Management Company and is not the value shown in the realestate appraisal report.

11Acquired Assets for the 14th Fiscal Period[B-46] S-FORT Ichinomiya Honmachi

Acquired February 25, 2022

Ichinomiya-shi, Aichi








[A-86] S-FORT Taisho riviere
Taisho-ku, Osaka-shiCompact-type property located atabout a 7-minute walk from OwariIchinomiya Station and MeitetsuIchinomiya Station on the JR Tokaido
Main Line
Offers excellent transportation
convenience to the central
commercial areas and the main
business districts as Nagoya Station
is about 10 minutes away
There are stores selling daily
necessities, restaurants, and otherestablishments within walking
distance, offering high living
convenience, and there are alsoparks in the surrounding area,
forming a favorable living
environment
Obtained five stars in Building Energy
Saving Performance Labeling System(BELS) certification in April 2022

Acquired February 28, 2022

Single-type property located at about a 7-minute walk fromTaisho Station on the JR Osaka Loop Line
Offers excellent transportation convenience to the central
commercial areas and the main business districts as Taisho
Station offers access to Osaka Station in about 10 minutes andTennoji Station in about 5 minutes
Located near the Kyocera Dome, shopping malls, andconvenience stores, offering superior living convenience[B-47] S-RESIDENCE Senrioka
Settsu-shi, Osaka

Acquired February 28, 2022



Building with superior“consideration for theenvironment and society”
★★





[C-39] S-RESIDENCE Kitasenju reiz
Adachi-ku, TokyoSingle-type property located at about a
3-minute walk from Senrioka Station on
the JR Tokaido Main Line
Offers excellent transportation
convenience to the central commercial
areas and the main business districts as
Senrioka Station offers access to ShinOsaka Station in about 9 minutes andOsaka Station in about 14 minutes
Since acquisition, wellness posters
urging residents to use the stairs,posters about sorting trash in English,etc., have been displayed, to increase
comfort and convenience for residents
Acquired two stars in DBJ Green
Building Certification in August 2022

Acquired February 28, 2022

Single and compact-type property located within walking distancefrom Kita-Senju Station on the JR and Tokyo Metro lines
Offers excellent transportation convenience to the central
commercial areas and the main business districts as Kita-Senju
Station offers access to Tokyo Station in about 18 minutes via the
Ueno-Tokyo Line
Excellent living environment with lots of greenery on the Sumida
River riverside and surrounding parks

12

Portfolio Overview

External Growth

Created a good-quality portfolio across 24 prefectures nationwide, with a focus on single and compact-type properties[Ratio of Investment Target](As of July 31, 2022)
No. ofproperties
Asset size

[Ratio by Room Type]
Family13.8%

１59 properties

No. ofrentable units

Ratio of single
and compact
type
86.2%

Rentalhousing100%

147.6 billion yen

Single44.0%

10,036 units

Compact
42.2%

Hokkaido
12 12[Investment Ratio
by Geographical Area]
Niigata 2
Miyagi 3
Shiga 1
Kyoto 2

GreaterTokyo area
26.6%

Gunma 1

Ratio ofregional cities
73.4％

Tochigi 2

Hyogo 7

Ibaraki 1
Saitama 2

Hiroshima 2

Chiba 12

Fukuoka 11

Major regional
cities46.8%[Investment Ratio by Area]
Kyushu18.1%

Kanagawa
10 10
Shizuoka 2

Nagasaki 1

Aichi 33

Kumamoto 8

Mie 7
Oita 4

Osaka 20
20

Kagoshima 1

Kinki
22.4%

Progress ofdiversified
investment

Other
regional cities
26.6%

Kita Kanto
3.3%
Minami
Kanto
26.6%

Tokai
20.4%

[Investment Ratio
by Building Age]
20 years or more
4.2%
15 years toless than
20 years
24.3%

10 years toless than
15 years
30.9%(Note) “Average building age" is calculated by weighted average of the building ages based on the acquisition priceat the end of the period, and is rounded off to the first decimal place.

Tohoku1.9%
Koushinetsu
1.6%

Chugoku
1.2%

Tokyo 12

Saga 3

Hokkaido
4.6%[Investment Ratio by Seller]

Less than 5 years
18.1%

Averagebuilding
age
1１.4 years

5 years toless than
10 years
22.5%

Properties
acquired frombridge fund
6.5%

Properties
developed bymain sponsor
18.9%

Sponsorinvolvement
91.3%

Properties
acquired fromexternal
parties
8.7%

Properties
owned bymain sponsor
65.8%

13

Change in Occupancy Rates

Internal Growth

Change in Occupancy Rate by Area

Major regional cities

Other regional cities

Greater Tokyo area

Overall portfolio

98.0

（％）

95.0

92.0

89.0

86.0

83.0

80.0

July 2021 (12th FP)
Average occupancy rate
9５.８％

January 2021 (11th FP)
Average occupancy rate
94.9％

Major regional cities

Aug.
2020
94.8

Sept.
2020
94.8

Oct.
2020
95.1

Nov.
2020
94.9

Dec.
2020
94.7

Jan.
2021
95.7

Feb.
2021
95.5

Mar.
2021
97.5

Apr.
2021
96.6

Other regional cities

93.6

93.6

Greater Tokyo area

97.3

97.8

94.2

93.1

93.0

92.9

93.7

96.2

97.0

97.0

96.4

96.4

96.6

96.2

Overall portfolio

94.9

95.0

95.2

94.7

94.5

94.9

95.1

96.8

May
2021
95.6

Jun.
2021
95.2

95.2

95.1

95.3

95.1

94.0

94.1

94.4

96.5

96.7

97.1

97.3

96.8

96.9

96.2

96.1

95.7

95.6

95.7

95.0

95.3

95.4

95.5

（％）

Jul.
2021
95.5

Aug.
2021
95.0

Sept.
2021
95.5

Hokkaido
Tokai

Change in Occupancy Rate by Region

July 2022 (14th FP)
Average occupancy rate
96.0％

January 2022 (13th FP)
Average occupancy rate
95.4％
Oct.
2021
95.8

Nov.
2021
95.5

Dec.
2021
95.5

Jan.
2022
96.3

94.9

95.3

95.3

95.3

96.0

95.2

94.4

95.0

95.7

96.3

95.8

96.2

96.6

96.9

96.6

96.2

95.9

97.7

95.5

95.9

95.9

96.8

95.9

95.2

95.6

96.4

Tohoku
Kinki

Feb.
2022
96.0

Koushinetsu
Chugoku

Mar.
2022
97.4

Apr.
2022
96.1

May
2022
95.4

Kita Kanto
Kyushu

Jun.
2022
95.8

Jul.
2022
96.4

Minami Kanto

98.0

95.0

92.0

89.0

86.0

July 2021 (12th FP)

January 2021 (11th FP)

July 2022 (14th FP)

January 2022 (13th FP)

83.0

80.0
Hokkaido

Aug.
2020
92.1

Sept.
2020
92.3

Oct.
2020
94.4

Nov.
2020
93.7

Dec.
2020
93.4

Tohoku91.9

Koushinetsu

91.8

Kita Kanto
Minami Kanto

Jan.
2021
94.0

Feb.
2021
94.0

Mar.
2021
96.3

Apr.
2021
96.4

May
2021
96.3

Jun.
2021
94.1

94.5

95.1

95.2

94.7

94.2

94.0

97.2

96.7

94.1

93.7

93.0

96.5

96.5

96.5

98.8

97.7

100.0

97.7

95.4

95.4

94.3

94.3

93.4

92.6

96.8

95.1

96.6

99.5

97.0

98.5

97.7

97.3

97.8

97.0

97.0

96.4

96.4

96.6

96.2

96.5

96.7

97.1

Tokai

93.3

92.8

92.9

92.4

91.9

93.1

93.0

95.8

94.7

94.1

Kinki

97.3

97.0

97.3

96.5

96.4

96.9

97.2

98.4

98.1

Chugoku

97.8

98.5

97.9

100.0

98.5

97.8

97.8

97.0

Kyushu

93.3

93.6

93.8

93.5

93.1

93.6

94.0

96.5

Jul.
2021
96.0

Aug.
2021
96.5

Sept.
2021
96.9

93.1

91.9

95.4

95.4

93.7

94.9

94.2

94.2

95.1

96.8

98.5

97.8

96.7

94.7

95.7

95.4

96.5

97.9

97.3

96.8

96.9

96.2

96.3

95.8

94.7

95.5

95.2

95.5

95.3

95.6

96.7

96.4

96.0

96.1

96.2

96.7

96.4

97.8

97.1

97.8

96.4

94.9

95.5

96.3

94.8

94.9

94.6

94.4

92.6

92.5

93.4

(Note) “Occupancy rate” is the ratio of the total leased area to the total leasable area at the end of each month, rounded to the first decimal place.

Oct.
2021
96.6

Nov.
2021
95.4

Dec.
2021
94.6

Jan.
2022
95.1

Feb.
2022
95.1

Mar.
2022
99.1

Apr.
2022
97.7

May
2022
97.7

Jun.
2022
97.1

Jul.
2022
97.0

96.7

97.4

97.7

92.6

94.4

95.0

97.2

96.4

98.8

98.5

93.9

89.3

92.2

92.7

97.4

96.3

92.6

93.1

95.2

96.5

96.7

96.2

96.6

96.9

96.5

96.2

95.9

97.7

95.5

96.0

95.5

96.2

95.4

94.5

95.3

95.6

96.2

96.5

96.6

97.9

96.7

95.5

96.1

97.4

95.5

97.1

97.8

98.5

100.0

96.4

96.4

94.4

97.1

93.8

94.4

95.0

94.8

96.3

95.6

94.5

94.8

95.4

14

Change in Unit Rent

Internal Growth

Change in Unit Rent After Adjustment
Major regional cities

Other regional cities

Greater Tokyo area

Overall portfolio

102.5

Jan. 2022(13th FP)

100.0

99.5

Jun. 2015(At the Jan. 2016 Jul. 2016 Jan. 2017 Jul. 2017 Jan. 2018 Jul. 2018 Jan. 2019 Jul. 2019 Jan. 2020 Jul. 2020 Jan. 2021 Jul. 2021
time of(1st FP) (2nd FP) (3rd FP) (4th FP) (5th FP) (6th FP) (7th FP) (8th FP) (9th FP) (10th FP) (11th FP) (12th FP)
listing)Jul. 2022(14th FP)

Aug.
2021

Sept.
2021

Oct.
2021

Nov.
2021

Dec.
2021

Jan.
2022

Feb.
2022

Mar.
2022

Apr.
2022

May
2022

Jun.
2022

Jul.
2022

Major regional cities

100.0

100.2

100.5

100.6

101.0

101.2

101.5

101.6

101.8

102.0

102.3

102.2

102.6

102.2

102.3

102.4

102.3

102.3

102.4

102.4

102.5

102.6

102.6

102.6

102.6

Other regional cities

100.0

100.0

100.2

100.5

101.0

101.2

101.0

101.3

101.7

101.7

101.9

101.5

101.5

101.2

101.3

101.3

101.3

101.3

101.3

101.3

101.3

101.4

101.4

101.4

101.4

Greater Tokyo area

100.0

100.1

100.4

100.4

100.7

100.9

100.7

100.8

100.6

100.6

100.9

101.0

101.4

101.3

101.3

101.3

101.4

101.4

101.5

101.5

101.3

101.3

101.3

101.3

101.4

Overall portfolio

100.0

100.1

100.5

100.5

100.9

101.2

101.2

101.4

101.6

101.6

101.9

101.7

102.0

101.7

101.8

101.8

101.8

101.8

101.9

101.8

101.9

101.9

101.9

102.0

102.0

(Note 1)

Unit rent after adjustment is calculated using the following formula with the assumed contract period of 4 years.
Unit rent after adjustment = {Monthly rent revenue + (Key money revenue ÷ Assumed contract period)} ÷ Contracted area
(Note 2) Indexed by regarding the unit rent after adjustment upon listing (end of June 2015) as 100.

Change in Average Unit Rent by Region
Hokkaido
Kita Kanto
Kinki

(yen)

(Reference) Condominium Rent IndicesTohokuMinami Kanto
Chugoku

Koushinetsu
Tokai
KyushuQ1 2022Comparison withprevious fiscal
period(Q4 2021)

10,000

9,000

8,000

Year-on-yearcomparison(Q1 2020)

Sapporo-shi

117.68

4.12

-1.76

Sendai-shi

117.61

0.18

-1.01

Nagoya-shi

106.89

-4.11

-3.75

Kyoto-shi

111.31

-2.10

２.24

Osaka-shi

112.26

1.04

-0.04

Fukuoka-shi

117.88

1.09

2.21

7,000

6,000

5,000
Hokkaido

Jan. 2020(9th FP)
5,756

Jul. 2020(10th FP)
5,747

Jan. 2021(11th FP)
5,752

Jul. 2021(12th FP)
5,756

Jan. 2022(13th FP)
5,763

Jul. 2022(14th FP)
5,800

Tohoku

8,399

8,381

7,916

7,915

7,296

7,329
7,709

Koushinetsu

7,611

7,651

7,685

7,696

7,708

Kita Kanto

5,315

5,328

5,320

5,318

5,851

5,818

Minami Kanto

9,609

9,647

9,577

9,628

9,708

9,735

Tokai

7,104

7,163

7,143

7,052

7,248

7,356

Kinki

9,409

9,434

9,101

9,103

9,113

9,151

Chugoku

7,272

7,254

7,249

7,256

7,276

7,264

Kyushu

5,963

5,948

5,877

5,841

6,070

6,059

The figures are indexed by regarding the unit rent for single type (18 m2 or more and lessthan 30 m2) in the first quarter of 2009 (January to March) as 100.
Source: Prepared by the Asset Management Company based on condominium rent indices (At Home
Co., Ltd., Sumitomo Mitsui Trust Research Institute Co., Ltd.).
(Note)

15

Trends of Rent Upon Replacement and Renewal

Internal Growth

Maintained positive rate of fluctuation in rent upon replacement
Trends of Rent Upon Replacement (Monthly)

Trends of Rent Upon Renewal (Monthly)

No. of units(ratio)Pervious rent
includingcommon area
expenses(thousand yen)

Current rent
includingcommon area
expenses(thousand yen)Amount of rent
increase/decrease(thousand yen)

Fluctuation
rate of rent

Decrease

279 units（21.6％）

21,321

20,340

-981

-4.6%

Decrease

０ units（0.0％）

Unchanged

318 units（24.7％）

25,62425,624±0±0.0%

Unchanged

2,０３９ units（99.9％）

Increase

693 units（53.7％）

57,63959,687+2,048＋3.6％

Increase

3 units（0.1％）

Total

1,290 units（100.0％）104,585

105,651+1,066

+1.0％

Total

2,042 units（100.0％）

Ratio ofunits withvariable 100%
rent
(ratio)Increase

22.9%

Unchanged

21.7%

Decrease

20.0%

21.6%

No. of units(ratio)Ratio ofunits with
100%
variablerent(ratio)Current rent
includingcommon area
expenses(thousand yen)Amount of rent
increase/decrease(thousand yen)

Fluctuation
rate of rent

０

０

±０

±０.0%

164,043

164,043

±０

±０.0%

228

235

＋７

＋3.0％

164,271

164,278＋7+0.0％

Increase

Unchanged

Decrease

0.2%

0.1%

0.0%

0.0%

99.8%

99.9%

99.8%

99.9%

0.0%

0.0%

0.2%

80%

80%

60%

Pervious rent
includingcommon area
expenses(thousand yen)

26.8%

26.2%

25.3%

24.7%
60%

40%

40%

50.2%

52.1%

54.7%

53.7%

20%

20%

0%

0%

0.1%
Fluctuation
rate ofrent
2.0%

2021年1月期
Fluctuation（第11期）rate of rent

2021年7月期（第12期）

2022年1月期（第13期）

1.1%
0.5%

2022年7月期（第14期）

0.7%

Jul. 2021(12th FP)

2021年1月期
Renewal Rates（第11期）

2021年7月期（第12期）

90.7%

90.4%

Jan. 2021(11th FP)Jul. 2021(12th FP)

2022年1月期（第13期）

2022年7月期（第14期）

89.3%

90.0%

100.0%

1.0%
90.0%

0.0%
Jan. 2021(11th FP)

RenewalRates

Jan. 2022(13th FP)Jul. 2022(14th FP)

(Note 1) Values shown exclude S-RESIDENCE Joshin II, S-RESIDENCE Sengencho, S-FORT Utsunomiya Minamiodori,and S-FORT Naka-Itabashi.
(Note 2) “Rent” above includes common area expenses.

80.0%(Note)

Jan. 2022(13th FP)

Among the properties owned at the end of the fiscal period ended July 2022
(14th fiscal period), fixed-rent ML properties are excluded.

Jul. 2022(14th FP)

16

Change in Other Data

Internal Growth

Change in Unrealized Gain Based on Appraisal

Change in Portfolio Yield(million yen)

NOI yield
NOI yield after depreciation
Implied cap rate (NOI)
Implied cap rate (NOI after depreciation)

13,842

14,00011,51512,000

6.0%

9,525

10,000

5.3%

5.5%
8,000

6,774

7,210

5.3%

5.4%
5.2%

5.2%

5.3%

4.9%

5.0%

4.7%
4.5%

4.5%

6,265
4.5%

6,000

3.9%

3.9%

3.9%

4.0%

3.9%

4.0%

4.0%
4,000
3.5%

3.6%
2,000

Jan. 2021(11th FP)

0

Jan. 2020(9th FP)Jul. 2020(10th FP)Jan. 2021(11th FP)Jul. 2021(12th FP)Jan. 2022(13th FP)Jul. 2022(14th FP)

Change in Capitalization Rate Based on Appraisal
Major regional cities(Note)

3.5%
3.3%

3.0%

Jul. 2021(12th FP)Jan. 2022(13th FP)

3.4%
Jul. 2022(14th FP)

“Implied cap rate” is calculated using the following formula.
Implied cap rate = portfolio NOI (annualized)/ (market capitalization at end of period+ net interest-bearing debt + tenant leasehold and security deposits)

Composition by Tenant Attribute (Note)

Other regional cities
50s
9.0%

Greater Tokyo area
5.4%

5.1%

5.1%

Corporate
38.5%

5.1%
4.9%

4.8%

4.7%

60s or
older
1.9%

10s
4.5%
20s
48.4%

40s
13.4%

5.0%

5.1%

Jan. 2023
Jul. 2023(15th FP)
(16th FP)(assumption) (assumption)

4.9%

4.7%

Corporate /Individual Ratio

4.6%
4.5%

Composition
by Age

4.4%

4.5%

4.3%
4.4%

4.4%

4.2%

Individual
61.5%

4.3%
4.2%

4.1%

3.9%

Jan. 2020(9th FP)Jul. 2020(10th FP)

30s
22.8%

4.4%

Jan. 2021(11th FP)Jul. 2021(12th FP)Jan. 2022(13th FP)Jul. 2022(14th FP)

(Note)

Among the properties owned at the end of the fiscal period ended July 2022 (14th fiscal period),
fixed-rent ML properties are excluded.

17

Examples of Initiatives to Improve the Value of
Owned Properties (1)Internal Growth

Strengthening property competitiveness, maintaining and enhancing asset values, and increasing resident satisfaction
Introduction of Free Internet

Introduction of Electronic Breakers

With the recent increase in demand for telework, we are sequentially promoting
the introduction of free internet access to improve the convenience andsatisfaction of residents and strengthen the competitiveness of properties

By introducing electronic breakers for the “low-voltage power” at common areas ofapartments, etc., we have been able to reduce base rates, so we are continuously
promoting the introduction of these breakers each fiscal period

Number of properties where
it has been introduced

Number of properties where
it has been introduced[Examples of properties introduced this period]

１４０ properties/１７８ properties

106 properties/１７８ properties[Properties introducedin the 14th fiscal period][Properties introducedin the 14th fiscal period]
Major regional cities

Major regional cities
S-FORT Tsutsujigaoka Koen
S-FORT Atsuta Hanacho

S-RESIDENCE Joshin II
S-RESIDENCE Sengencho
S-FORT Taisho riviere

Other regional cities

Other regional cities

S-FORT Esaka Koen

S-FORT Utsunomiya Minamiodori
S-FORT Ichinomiya Honmachi
S-RESIDENCE Senrioka

Greater Tokyo area
S-FORT Funabashi Honcho
S-FORT Funabashi roots[Examples of properties introduced this period]

Greater Tokyo area
S-FORT Tsutsujigaoka Koen

S-FORT Funabashi Honcho

S-RESIDENCE Kitasenju reiz

S-RESIDENCE Sengencho

S-FORT Ichinomiya Honmachi

Installation of Bicycle Sharing and Electric Kickboards

Installation of Car Sharing

At some properties, installed ports for sharing services such as electric-assist
bicycles and electric kickboards to improve profitability and conveniencethrough the effective use of vacant space, as well as to contribute to promoting
the health of residents and reduce CO2 emissions, etc.

In consideration of resident lifestyle, introduced car sharing at some properties
to improve convenience for residents[Properties introducedin the 14th fiscal period][Properties introducedin the 14th fiscal period]

S-FORT Kumadaibyoin-mae

Bicycle sharing

Car sharing

S-FORT Kumadaibyoin-mae
S-FORT Kumamoto Gofukumachi

S-FORT Fujimidai[Number of properties
with introduction]

Electric kickboards

Car sharing

S-FORT Fukushima La Luna
S-FORT Fukushima Libre
S-FORT Sakuragawa Minami
S-FORT Fukushima EBIES-FORT Miyakojima KERS

S-FORT Shiomi
S-FORT Maihama(Note) All of the above figures are as of the end of August 2022.

S-FORT Miyakojima KERS

S-FORT Fujimidai

S-FORT Shiomi

18Examples of Initiatives to Improve the Value of
Owned Properties (2)Internal Growth

Hold regular online meetings with PM companies at least once a month to share leasing and construction status
and strengthen cooperation⇒ Find problems in each property at an early stage and take appropriate measures in a timely manner
Value Enhancement WorkS-FORT Kasugai(Kasugai-shi, Aichi)

Approximate 33% increasein monthly asking rent

Carried out renovations aimed at promoting
leasing and increasing rents

BeforeWesternstyle
room

After

[Closet]Storage biased
toward theJapanese-styleroom[Closet]Installed in each Western-style room
Split storage from the Japanesestyle room, installing closets withhanger pipes in each Western-styleroom, improving storage capability[Japanese-style room]
Difficulty in cleaning
and maintenancemakes them lesspreferred[Bedroom]
Changed from Japanese-style
room to Western-style room
Achieved a layout adjustableto various lifestyles[Living room]
Insufficientspace for thenumber of rooms[Living room]
Integrated Western-style roomwith LDK
Secured two Western-style rooms
while achieving an open LDK

CLJapanesestyle room
6-jo

LDK
Westernstyleroom

Balcony

Large-Scale Repair (Conducted for 5 Properties During the Period)
S-FORT Shin Osaka ravir

S-FORT Hakata-Higashi I & II

(Yodogawa-ku, Osaka-shi)(Hakata-ku, Fukuoka-shi)

Work details

Work details

The building was 16 years old, and there wasconsiderable deterioration mainly in the exterior
walls and frame→ Repair of frame and tile portions, waterproofing,
replacement of sealing, painting of iron portions,and decorative work

The building was 19 years old, and there wasconsiderable deterioration, mainly in the rooftop
waterproofing, exterior walls, and frame→ Repair of frame and tile portions, waterproofing,
replacement of sealing, painting of frame andiron portions, and decorative work

[After] Rooftop

 Superior reflectivity compared
to normal topcoat, expected toprevent surface temperaturerise of the waterproofing layer
 Inhibits surface cracking
caused by ultraviolet rays andheat, and is expected toincrease durability by about 5
years compared with normal
topcoat[After] Exterior
wall/ceiling Exterior walls are sprayed withmicro-elastic filler and water-based
silicone, which is expected toprevent cracking due to its
waterproof property
 Ceilings are painted with waterbased reaction-hardening emulsion
paint, which is expected to preventthe formation of algae and moldand maintain aesthetic appeal

Use of Free Cash
Depreciation
Distribution in excess of earnings
Capital expenditure(million yen)
1,200

900

600

819

817

451

1,091 520

222
300

206

300

1,076

985

960

209
122
0

Jan. 2021(11th FP)

232
Jul. 2021(12th FP)

294
Jan. 2022(13th FP)

189
Jul. 2022(14th FP)

279
Jan. 2023(15th FP)(assumption)

294
Jul. 2023(16th FP)(assumption)

19

Financial Highlights (1)Financial Operation

Change in Average Remaining Borrowing
Period and Fixed-Interest Rate Ratio

List of Major Financial Indicators
Total interestbearing debt

Total-asset
based LTV

Average remaining borrowing period (left axis)
Ratio of fixed interest rate (right axis)

4.0 years

Rating (JCR)

3.1 years 3.2 years 3.1 years 3.0 years

68.3%

3.0 years

77,43549.8％

million yen

3.4 years 3.3 years

A (Stable)

66.0%

80%

70%

60%

60.3%
50%

50.2%

2.0 years

Ratio of longterm debt

Fixed interest
rate ratio

Average remaining
borrowing period

52.1%
40%

42.5%
30%

1.0 years

84.9％

66.0％

20%

3.3 years
0.0 years

10%
Jan. 2020(9th FP)[February 2022 new borrowings]

Total amount

500 million yen

Borrowinginterest rate

0.94% (Note 1)

Borrowing
period5.9 years (Note 1)

Fixed/floating

Fixed

Jan. 2021(11th FP)Jul. 2021(12th FP)Jan. 2022(13th FP)Jul. 2022(14th FP)

Change in Average Interest Rate During the
Period and Total-Asset Based LTV

Overview of New Borrowings in February 2022 andRefinancing in July 2022
Overview of Procurement(Borrowing)

Jul. 2020(10th FP)

Period average interest rate (left axis)
Total-asset based LTV (right axis)

1.0%[Use of funds procured]
Allocated to acquisition funds for S-FORT
Ichinomiya Honmachi

0.83%

0.81%

0.82%

50.9%

50.5%

0.81%

0.80%

0.79%

50.8%

49.7%

49.8%

0.8%

70%

60%

50%
0.6%

50.7%

40%

[July 2022 refinancing]

0.4%[Use of funds procured] Allocated to funds for repayment of existing borrowings
Overview of Repayment

30%

Overview of Procurement (Borrowing)

Total amount

5,3５0 million yen

Total amount

2,000 million yen

３,3５０ million yen

Interest on
borrowings

0.99% (Note 1)

Interest on
borrowings

Base interest (Note 2)

0.99% (Note 1)

Borrowing
period

4.5 years (Note 1)

Borrowing
period

4.5 years (Note 2)

5.5 years (Note 1)

Fixed/floating

Fixed

Fixed/floating

Floating

Fixed

0.2%

20%

0.0%

(Note 1) “Borrowing interest rate” and “Borrowing period” are calculated based on the figures at the time of procurement, andthe interest rate is rounded off to the second decimal place.
(Note 2) “Borrowing period” is calculated based on the figures at the time of procurement, and “Borrowing interest rate” uses
the base rate of one-month JPY TIBOR.

10%
Jan. 2020(9th FP)(Note)

Jul. 2020(10th FP)Jan. 2021(11th FP)Jul. 2021(12th FP)Jan. 2022(13th FP)Jul. 2022(14th FP)

Period-end average interest rate is calculated based on the weighted average of theinterest rates at the end of each fiscal period, rounded off to two decimal places.

20

Financial Highlights (2)List of Interest-Bearing Debt

Ratio of top 10
borrowings

７９.６%

Financial Operation

Lender(Top 10 borrowings)

Amountoutstanding(million yen)

Ratio

Lender■ Sumitomo Mitsui Banking
Corporation

10,005

12.9%■ Mizuho Bank, Ltd.

8,475

10.9%

■ Shinsei Bank, Limited

8,175

10.6%

■ The Bank of Fukuoka, Ltd.

8,125

10.5%

■ Aozora Bank, Ltd.

7,450

9.6%

■ Nishi-Nippon City Bank, Ltd.

6,000

7.7%

■ Resona Bank, Limited

4,550

５.９%

■ The Higo Bank, Ltd.

3,700

4.8%

■ THE KAGAWA BANK,Ltd.

2,975

3.8%

■ Kansai Mirai Bank, Limited

2,200

2.8%

Total ((1))

61,655

79.6％

Status of Maturity Ladder■ The Juhachi-Shinwa Bank, Ltd.
■ ＴｈｅＴｂank of Yokohama, Ltd.
■ The Kumamoto Bank, Ltd.
■ The Bank of Saga Ltd.
■ THE HYAKUGO BANK, LTD.
■ Japan Post Bank Co., Ltd.
■ Daishi Hokuetsu Bank, Ltd. *New■ San ju San Bank, Ltd.
■ The Kagoshima Bank, Ltd.
■ The Dai-ichi Life Insurance
Company, Limited■ THE SHIZUOKA BANK, LTD.
■ Fukoku Mutual Life Insurance
Company■ The Hiroshima Bank, Ltd.
■ The Chiba Bank, Ltd.
■ Oita Bank Co., Ltd.
■ Investment corporation bonds
Total ((2))
Total ((1)+(2))

Amountoutstanding(million yen)
2,000

Ratio
2.6%

1,250
1,180
1,000
1,000
1,000

1.6%
1.5%
1.3%
1.3%
1.3%

850

1.1%

800
500

1.0%
0.6%

500

0.6%

500

0.6%

300

0.4%

300
300
100
4,200
15,78077,435

0.4%
0.4%
0.1%
5.4%
20.4％
100.0％(million yen)
10,000Loans payable

Investment corporation bonds

8,000

1,700
6,000

1,000
9,230
8,050

4,000

5,035

5,650

5,800

6,000

6,500

7,700

7,300
6,270

5,700

2,000

1,500
0
Jan. 2023(15th FP)Jul. 2023(16th FP)Jan. 2024(17th FP)Jul. 2024(18th FP)Jan. 2025(19th FP)Jul. 2025(20th FP)Jan. 2026(21th FP)Jul. 2026(22th FP)Jan. 2027(23th FP)Jul. 2027(24th FP)Jan. 2028(25th FP)Jan. 2032(33th FP)21

3. Overview of August 2022 Capital Increase
Through Public Offering and Third-Party Allotment

Overview of Asset Acquisition With Capital Increase
Through Public Offering and Third-Party Allotment
Overview of Acquired Assets

Acquisition date

19 properties

No. of properties

Total acquisition
price

15,067 million yen

No. of rentable
units

1,143 units

Average buildingage (Note 1)

3.8 years

Appraisal NOI total

729 million yen(Note 2)Major regional cities

Other regional cities

Greater Tokyo area

11 properties (9,038 million yen)

7 properties (5,545 million yen)

1 property (484 million yen)

S-RESIDENCE Kyoto Takeda
Dormitory

S-RESIDENCE Takaida Central

S-FORT Odawara Sakaecho(Higashiosaka-shi, Osaka)(Odawara-shi, Kanagawa)August 2, 2022

Average appraisal
NOI yield (Note 2)(Fushimi-ku, Kyoto-shi)
A single-type newly built property with bothstudent apartments and general residences,located at about a 5-minute walk fromTakeda Station on the Kyoto Municipal
Subway Karasuma Line and the Kintetsu
Kyoto LineA single-type newly built property withexcellent
transportation
convenience,located about a 9-minute walk from Takaida
Station on the Osaka Metro (Subway) Chuo
Line and about 20 minutes to Osaka Stationand Shin-Osaka Station

A single-type newly built property located atabout a 7-minute walk from JR Odawara
Station, with commercial facilities and many
restaurants and retail stores concentrated
around the station, offering superior living
convenience

4.8%

Overview of Capital Increase Through Public Offering and Third-Party Allotment
Continued public offering and capital increase
through third-party allotment from August 2021

[Capital increase through public offering]
Total number of new
investment units issued

30,466 units

Paid-in amount(issue amount)

119,831 yen

Total paid-in amount(total issue amount)

3,650,771,246 yen

Date of resolution ofissuance

Friday, July 15, 2022

Payment date

Monday, August 1, 2022

[Capital increase through third-party allotment]
Paid-in amount (issue amount)

124,293 yen

Total paid-in amount (total issue amount)

4,612,637,523 yen

Allottees, number of investment units
allotted, and holding ratio of investment
units (assumption)

Daiwa Securities Group Inc.

27,770 units

38.9%

Samty Co., Ltd.

9,341 units

13.5%(Note 1) “Average building age” is calculated as the weighted average of the building ages as of August 2, 2022, based on the acquisition price, and rounded off to the first decimal place.
(Note 2) The numerical value at the time of obtaining the appraisal report is shown. “Appraisal NOI total” is the sum of the amounts shown in the real estate appraisal report. “Appraisal NOI yield” is the figure calculated by
dividing the appraisal NOI total by the acquisition price, rounded off to one decimal place. Please note “Average appraisal NOI yield” is a value calculated by the Asset Management Company and is not the value shownin the real estate appraisal report.
(Note 3) The ownership ratio combined with the company’s subsidiary Daiwa PI Partners Co., Ltd. is expected to be 40.2%. It has been confirmed that Daiwa Securities Group Inc. intends to continue to treat Samty Residential
Investment Corporation as its consolidated subsidiary on the consolidated financial statements, in accordance with the effective control standards of the accounting standards.

23

Changes in Portfolio◆ In the offering, 19 properties were acquired for 15 billion yen, and Samty Residential Investment
Corporation’s asset size expanded to 178 properties at 162.6 billion yen◆ Further rejuvenated the portfolio by diversifying areas and increasing the number of units, as well as
incorporating properties with an average building age of 3.8 years
Before the offering

Acquired assets

After the offering

No. of properties

159 properties

19 properties

178 properties

Total acquisition price147.6 billion yen

15.0 billion yen

162.6 billion yen

Total appraisal value

161.1 billion yen

14.9 billion yen

176.1 billion yen

5.1%

4.8%

5.1%

Average building age

11.5 years

3.8 years

10.7 years

No. of rentable units

10,036 units

1,143 units

11,179 units

Average occupancy rate (Note 2)

95.2%

96.4%

95.3%

S-RESIDENCE ratio (Note 3)

18.9%

66.3%

23.3%

Average appraisal NOI yield[Ratio of Investment Target]
Before the offering

Rentalhousing100.0%

After the offering

Rentalhousing100.0％[Ratio by Building Age (acquisition price basis)] [Ratio by Room Type (acquisition price basis)]
Before the offering

15 years toless than
20 years
24.3%

20 yearsor more Less than
4.2%
5 years
18.1%

Averagebuildingage
11.5 years

10 years toless than
15 years
30.9%

5 years toless than
10 years
22.5%

After the offering

15 years toless than
20 years
22.9%

20 yearsor more3.8%

Less than
5 years
23.5%

Family13.8%

After the offering
Family12.5%

Single44.0%Single45.9%

Ratio ofsingle andcompacttype
87.5％

Ratio ofsingle andcompacttype
86.2％

Averagebuildingage
10.7 years

10 years toless than
15 years
29.0%

Before the offering

5 years toless than
10 years
20.8%

Compact
42.2%(Note 1) All of the figures on this page are information provided in our July 15, 2022, disclosure.
(Note 2) “Average occupancy rate” is the ratio of the total leased area to the total leasable area for acquired assets and assets to be acquired, rounded off to the first decimal place.
(Note 3) “S-RESIDENCE ratio” is calculated as the ratio of S-RESIDENCE properties to the total portfolio based on the weighted average of acquisition price, rounded off to the first decimal place.

Compact
41.6%

24

Advantages of the Sponsor Brand “S-RESIDENCE”◆ “S-RESIDENCE” is a rental condominium brand developed by Samty Group since 2005
◆ In the offering, 10 properties were acquired, expanding these to 32 properties (Note 1) and contributing
to maintaining and improving portfolio quality
S-RESIDENCE Period Average Occupancy
Rate (Note 2)

The “S-RESIDENCE” Brand（％） 100.0
S-RESIDENCE

All properties
99.0

The concept and design of the building reflects the needs of the area, with spacious
entrance halls and interior corridors, creating a luxurious hotel-like atmosphereHigh-quality design and comfort attracts singles and DINKs, enabling early leasing up
and maintenance of high occupancy rates

S-RESIDENCE significantly
contributing to maintaining astable occupancy rate

S-RESIDENCE Series
98.0

97.0

96.0

All properties
95.0

Serene and massive entrance hall
94.0

Jul. 2019(8th FP)Jan. 2020(9th FP)Jul. 2020(10th FP)Jan. 2021(11th FP)Jul. 2021(12th FP)Jan. 2022(13th FP)Jul. 2022(14th FP)S-RESIDENCE

97.9

97.4

97.9

98.0

97.0

97.2

97.2

All properties

96.6

96.1

95.9

94.9

95.8

95.4

96.0

Hotel-like corridors
respecting guests’ privacy

Number of “S-RESIDENCE” Properties
32(properties) 35
30
25

20

22

20
15

14

15

15

15

15

10

Ample and practicalstorage at entrance

50Jul.2019(8thFP)

Jan.2020(9thFP)

Jul.2020(10thFP)

Jan.2021(11thFP)

Jul.2021(12thFP)

Jan.2022(13thFP)

Jul.2022(14thFP)

Jan.2023(15thFP)(assumption)(Note 1) The values shown are as of August 31, 2022.
(Note 2) “S-RESIDENCE period average occupancy rate” is the rate of the total leased area to the total leasable area at the end of each month,rounded to the first decimal place.

Bright, stylish bathroom
and system kitchen

Bathroom
heater/dryer/ventilation systemassuring comfort when taking abath in winter or drying clothes
on rainy days

25

Overview of Acquired Assets (1) S-RESIDENCE Series (1)[A-87] S-RESIDENCE Kyoto Takeda Dormitory
LocationFushimi-ku, Kyoto-shi
Acquisition price
2,235 million yen
No. of rentable units
185 units
Completion time
February 2022

[A-88] S-RESIDENCE Maruyama Omotesando
Location
Chuo-ku, Sapporo-shi
Acquisition price
1,421 million yen
No. of rentable units
89 units
Completion time
March 2021

Both Student Apartment and General ResidenceThe combination of a student apartment and general residence enables capturing a wide range
of demand
Nutritious meals are served in the 1F cafeteria for the student floors located on 1F-5F
A shared kitchen, working lounge, and theater room are available as common areas on 6F and 7F

Student
apartment(1F to 5F)

Living space

Cafeteria

Dinner (illustration)

 Located about an 8-minute walk from Nishi-Juhatchome Station on
the Sapporo Municipal Subway Tozai Line, residents can accessOdori Station in about 4 minutes or Sapporo Station in about 14
minutes from Nishi-Juhatchome Station, providing excellent
convenient access to the city’s commercial center and major
business districts.
 It offers an extensive range of facilities within walking distance,
including convenience stores, supermarkets, hospitals, restaurants,
large commercial facilities, parks, elementary schools, and nurseryschools This 89-unit property consists of single, compact, and family typeunits, and is expected to be in demand from a wide range of groups,
from singles and DINKs to families.

General public
residence(6F and 7F)

Shared kitchen(Note) All of the above figures are as of August 2, 2022.

Working lounge

Theater room

26

Overview of Acquired Assets (1) S-RESIDENCE Series (2)Property name

[A-89] S-RESIDENCE Soen

Location
Acquisition priceNo. of rentable
units
Completion time

Chuo-ku, Sapporo-shi
1,081 million yen

Property nameLocation
Acquisition priceNo. of rentable
units
Completion time

[A-92] S-RESIDENCE
Kindai-bijutsukan-mae
Chuo-ku, Sapporo-shi
594 million yen[A-93] S-RESIDENCE Meieki[A-96] S-RESIDENCE Horita

Nishi-ku, Nagoya-shi
522 million yen

Mizuho-ku, Nagoya-shi
475 million yen

51 units

40 units

32 units

36 units

March 2021

September 2021

January 2021

October 2020

[B-48] S-RESIDENCE
Takaida Central
Higashiosaka-shi, Osaka
1,388 million yen[B-49] S-RESIDENCE
Sakaishi Ekimae
Kita-ku, Sakai-shi
906 million yen[B-51] S-RESIDENCE
Yokkaichi Motomachi
Yokkaichi-shi, Mie
720 million yen[B-53] S-RESIDENCE
Ichinomiya Ekimae
Ichinomiya-shi, Aichi
650 million yen

138 units

84 units

60 units

55 units

February 2022

February 2022

June 2021

August 2021

(Note) All of the above figures are as of August 2, 2022.

27

Overview of Acquired Assets (2) S-FORT Series

Property nameLocation
Acquisition priceNo. of rentable
units
Completion time

Property nameLocation
Acquisition priceNo. of rentable
units
Completion time

[A-90] S-FORT Sakuragawa
Naniwa-ku, Osaka-shi
743 million yen[A-91] S-FORT Bentencho
Minato-ku, Osaka-shi
607 million yen[A-94] S-FORT Joshin
Nishi-ku, Nagoya-shi
522 million yen[A-95] S-FORT Sakuranomiya
Miyakojima-ku, Osaka-shi
512 million yen

33 units

50 units

37 units

32 units

March 2007

January 2008

February 2007

February 2021

[A-97] S-FORT
Tsukisamu
Toyohira-ku, Sapporo-shi
326 million yen[B-50] S-FORT
Niigata Sasaguchi
Chuo-ku, Niigata-shi
720 million yen[B-52] S-FORT
Kagoshima Ekimae Bayside
Kagoshima-shi, Kagoshima
672 million yen[B-54] S-FORTEsaka Fiore
Suita-shi, Osaka
489 million yen[C-40] S-FORT
Odawara Sakaecho
Odawara-shi, Kanagawa
484 million yen

34 units

59 units

60 units

28 units

40 units

February 2021

January 2022

April 2016

February 2009

January 2009

(Note) All of the above figures are as of August 2, 2022.

28

Portfolio Map after Asset Acquisition[Investment Ratio by Geographical Area](As of August 2, 2022)
Before the offering
Greater Tokyo area
26.6%

After the offering
Greater Tokyo area
24.4%

Major regional cities
46.8%

Major regional cities
48.0%

Ratio ofregional
citiesRatio ofregional
citiesHokkaido 12 +4

73.4%

Niigata 2 +1

75.6%

Gunma 1
Shiga 1
Kyoto 2 +1
Hyogo 7

Miyagi3

Tochigi
Ibaraki

2
1

Other regional cities
26.6%[Investment Ratio by Area]

Saitama 2

Hiroshima 2
Fukuoka 11

Chiba

12

Tokyo

12

Kanagawa 10 +1

Saga 3

Shizuoka 2

Nagasaki 1

Aichi 33 +4

Oita 4

Before the offering

After the offering

Hokkaido Tohoku
1.9%
4.6%
Koushinetsu
Kyushu1.6%
18.1%

Kyushu16.8%

Chugoku
1.2%

Mie 7 +1

Kumamoto 8

Other regional cities
27.5%

End of the fiscal period
ended July 2021
(12th FP)
No. ofproperties
Total(planned)acquisition
price

132
properties

118.2
billion yen

No. ofrentableunits

8,279 units

Averagebuilding age

11.3 years

Averageappraisal NOI
yield

5.2%

Acquisition
Acquisition in
AugustAcquisition in
NovemberPublicoffering andcapitalincreasethroughthird-party
allotment

S-RESIDENCE
Joshin II

24 properties

End of the fiscal period
ending January 2022
(13th FP)

159
properties

146.3

Tokai
20.3%

Replacement

End of the fiscal period
ended July 2022
(14th FP)

Acquisition in
February

Sales in February
and March

S-FORT Ichinomiya
Honmachi

S-FORT Kamiotai

S-RESIDENCE
Sengenchobillion yen

S-FORT
Taisho riviere

S-FORT
Gakuenmae

S-FORT
Utsunomiya
Minamiodori

9,961 units

S-RESIDENCE
Senrioka

S-FORT Itabashi
ShimuraS-RESIDENCE
Kitasenju reiz

S-FORT Noborito

3 properties

11.3 years

4 properties

4 properties

5.1%

Total acquisition
price
3.7 billion yen

Total disposition
price
2.8 billion yen

Total acquisition Total acquisition
price
price
25.5 billion yen 2.5 billion yen

Minami Kanto
24.4%

Kinki
24.5%

Tokai
20.4%

Change in Portfolio

Kita Kanto
3.0%

Minami Kanto
26.6%

Kinki
22.4%

Kagoshima 1 +1

Koushinetsu
1.9%

Chugoku
1.0%

Kita Kanto
3.3%

Osaka 20 +6

Hokkaido
Tohoku
6.3%
1.7%

159
properties

147.6
billion yen

10,036 units

Acquisition

End of the fiscal period
ending January 2023
(15th FP) (assumption)

Acquisition in
AugustPublicoffering andcapitalincreasethroughthird-party
allotment

178
properties

162.6
billion yen

11,178 units

11.4 years

19 properties

11.2 years

5.1%

Total acquisition
price
15.0 billion yen

5.1%(Note 1) “Average building age" is calculated by weighted average of the building ages based on the acquisition price at the end of the period and is rounded off to the first decimal place.
(Note 2) The value at the time of obtaining the appraisal report is shown. “Average appraisal NOI yield” is the figure calculated by dividing the appraisal NOI by the acquisition price, rounded off to one decimal place.
Please note “Average appraisal NOI yield” is a value calculated by the Asset Management Company and is not the value shown in the real estate appraisal report.

29

Overview of New Borrowings◆ Promote sound financial management in line with portfolio expansion◆ We have newly borrowed from The Yamaguchi Bank, Ltd. to realize diversification of procurement sources.
Borrowing Overview

Lender Formation (as of August 2, 2022)

Before borrowing

After borrowing

Total interestbearing debt

77,435 million yen

85,435 million yen

Ratio of longterm debt

84.9%

86.3%

Fixed interest
rate ratio

66.0%

69.2%

Average remaining
borrowing period

3.3 years

3.5 years

0.79%

0.81%

80%

4.0 years

3.4 years
3.1 years

3.0 years

3.0 years

68.3%

3.5 years
3.3 years
66.0%

70%

69.2%
60%

60.3%
50%

50.2%

52.1%
40%

30%
1.0 years
20%

0.0 years

Jul. 2020(10th FP)

(Ratio of top 5
borrowings)

55.9%

26 financial institutions

Amountoutstanding(million yen)
Sumitomo Mitsui Banking Corporation
12,055
Mizuho Bank, Ltd.
9,975
Shinsei Bank, Limited
9,175
Major
banks
Aozora Bank, Ltd.
8,450
Resona Bank, Limited
5,000Japan Post Bank Co., Ltd.
1,000
The Bank of Fukuoka, Ltd.
8,125
Nishi-Nippon City Bank, Ltd.
6,000
The Higo Bank, Ltd.
3,700
THE KAGAWA BANK, Ltd.
2,975
Kansai Mirai Bank, Limited
2,200
The Juhachi-Shinwa Bank, Ltd.
2,000
The Hiroshima Bank, Ltd.
1,300
Ｔｈｅ ｂank of Yokohama, Ltd.
1,250
1,180
Regional The Kumamoto Bank, Ltd.
banks
The Bank of Saga Ltd.
1,000
THE HYAKUGO BANK, LTD.
1,000
The Yamaguchi Bank, Ltd. * New
1,000
Daishi Hokuetsu Bank, Ltd.
850
San ju San Bank, Ltd.
800
The Kagoshima Bank, Ltd.
500
THE SHIZUOKA BANK, LTD.
500
The Chiba Bank, Ltd.
300
Oita Bank Co., Ltd.
100
500
Insurance The Dai-ichi Life Insurance Company, Limited
companies Fukoku Mutual Life Insurance Company
300

LenderAverage remaining borrowing period (left axis)
Ratio of fixed interest rate (right axis)

2.0 years(Ratio of top 5
borrowings)

25 financial institutions

Changes in Average Remaining Borrowing Period andFixed-Interest Rate Ratio

3.2 years(Afterborrowing)

54.5%(Note 1)

Average interest
rate (Note 2)(Beforeborrowing)

Jan. 2021(11th FP)Jul. 2021(12th FP)Jan. 2022(13th FP)Jul. 2022(14th FP)Jan. 2023(15th FP)*As of August 2022

10%

(Note 1) The figures before borrowing are as of July 31, 2022, and the figures after borrowing are as of August 2, 2022.
(Note 2) Figures are the weighted average of the amount of interest-bearing debt as of July 31, 2022, for before borrowing
and as of August 2, 2022, for after borrowing, rounded off to the second decimal place.

Ratio
14.1%
11.7%
10.7%
9.9%
5.9%
1.2%
9.5%
7.0%
4.3%
3.5%
2.6%
2.3%
1.5%
1.5%
1.4%
1.2%
1.2%
1.2%
1.0%
0.9%
0.6%
0.6%
0.4%
0.1%
0.6%
0.4%

Investment corporation bonds

4,200

4.9%

Total

85,435100.0%

30

４. Management Forecasts and Growth Strategy
for the 15th and 16th Fiscal Periods

Management Forecast for the Fiscal Period Ending January 2023
(15th Fiscal Period) and Fiscal Period Ending July 2023 (16th Fiscal Period)(1)Jul. 2022(14th FP)
Results

Jan. 2023(15th FP)(2) Forecast(unit: million yen)

Operating revenue
Operatingexpenses
Operating income

5,408
2,859
2,549

5,493
2,954
2,539

Jul. 2023(16th FP)

Vs. forecast forthe 14th fiscal
period((2) - (1))(3) Forecast

＋85

5,568

＋95
-9

3,108
2,460

[Assumed occupancy rate]

Vs. forecast forthe 15th fiscal
period((3) - (2))+74

（15th FP) 96.4％ （1６th FP) 96.6％(単位：百万円)
VS. results for the 14th fiscal period ((2)-(1))(unit:
million yen)

Increase in revenues from rents andcommon service fees

＋500

Loss of gain on sale of real estate-376

Operatingrevenue+154-79(Rent business expenses)

Operatingexpenses

Increase in depreciation+91

Decrease in restoration costs-28(Selling, general and administrative expenses)

Ordinary income

2,136

2,030

-106

1,982

Increase in taxes and dues (nondeductible)

-47

+１７

(Non-operating expenses)

Net income

Total distribution
per unit
Distribution
per unit
Distribution inexcess of
earnings per unit

Number ofinvestment units
issued andoutstanding
Payout Ratio

No. of properties

2,135

3,021 yen
2,775 yen

2,029

2,752 yen
2,419 yen-106

-269 yen-356 yen

1,981

2,713 yen
2,362 yen

-47

Ordinary
income+93

VS. forecast for the 15th fiscal period ((3)-(2))(unit:
million yen)

Increase in revenues from renewal fee+23

Increase in revenues from restoration
costs

+21

Increase in revenues from key money+１３-39 yen-57 yenIncrease in borrowing-related
expenses

Operatingrevenue(Rent business expenses)

246 yen333 yen+87 yen351 yen+18 yenOperatingexpenses

Increase in taxes and dues (fixed
asset tax and city planning tax)

+55

Increase in restoration costs+22(Selling, general and administrative expenses)

769,626

838,726＋69,100

838,726

units

units

units

units

74.5%

74.3％

-0.2％

74.０％

±0 units

-0.3％

1５９

178

＋19

１78

±0

properties

properties

properties

properties

properties

Increase in asset management fee＋28

Increase in property survey expenses+14(Non-operating expenses)

Ordinary
incomeDecrease in borrowing-related
expenses-31

32

Factors for Change in Distribution per Unit
Factors for Change in Results for the Fiscal Period Ended July 2022 (14th FP)
and Forecast for the Fiscal Period Ending January 2023 (15th FP)(yen / unit)

3,021
Excess profit
Distribution

Distribution

Increase in NOI
after
Loss of gain on
depreciation
sale of real(for newestateacquisition)

246

2,775

-450

Increase infinancial costs(for newacquisition)

Dilution(for newacquisition)

-103

-1８８

Increase in NOI
Increase inafter
selling,
depreciation (for general andexisting
administrative
properties)
expenses+397

Temporaryfactors

＋８９

-48

Other

Increase in
distribution inexcess of earnings

-73

＋107

2,752
333

Effects of capital increase

2,419

Jul. 2022 (14th FP)
Results

Jan. 2023 (15th FP)
Forecast

Factors for Change in Forecasts for the Fiscal Period Ending January 2023 (15th Fiscal Period)and Fiscal Period Ending July 2023 (16th Fiscal Period)(yen / unit)

2,752
+17

-67

Increase in NOI after
depreciation(Excluding expensing of
fixed asset tax and city
planning tax)

Expensing of fixed
asset tax and city
planning tax-45

Decrease inborrowing-related
expenses

Increase in
distribution inexcess of earnings

+38

＋18

2,713

Excess profit
Distribution

333

Distribution

2,419

2,362

Jan. 2023 (15th FP)
Forecast

Jul. 2023 (16th FP)
Forecast

Increase in selling,
general andadministrative
expenses351

33

Growth Strategy

External
Growth1.

Financial
Operation

1.

Internal
GrowthGrowth Strategy

2.

2.

1.
2.
3.

Future Targets

Expand the asset size through continuous
property acquisition
Enhance portfolio quality and realize
unrealized gains through asset replacement

Samty Residential Investment Corporation aims forexternal growth utilizing various support provided basedon sponsor support agreements with its sponsors.
[Change in Asset Size] (unit: 100 million yen)Reinforce property competitiveness throughappropriate capital investment
Enhance profitability by maintaining andimproving average occupancy rate
Reduce financial costs
Extension and fixing of maturity year
Improve credit rating[Main Sponsor][Sub-sponsor]

Aim to achieve asset size of
200 billion yen

2,000

1,626

1,100

Jul. 2020(10th FP)

1,184

1,182

Jan. 2021(11th FP)Jul. 2021(12th FP)

1,463

1,476

Jan. 2022(13th FP)Jul. 2022(14th FP)Jan. 2023(15th FP)

列2

列3

(assumption)(Note) These figures represent the targets set by the Asset Management Company and their futureachievements are not guaranteed.

Property Acquisition

Stable Fund Procurement

Pipeline Supported

System Supported byby Samty Group

Daiwa Securities Group Inc.

Collaboration between Samty Group and Daiwa Securities
Group Inc. (Note)(Provision of information on CRE (Corporate Real Estate)/
Cooperation in real estate sales for wealthy individuals and crowdfunding)(Note) Samty Co., Ltd. and Daiwa Securities Group Inc. concluded a capital and business alliance agreement on May 30, 2019.

Sponsor Pipelines Samty Residential Investment Corporation is grantedwith preferential negotiation rights for the “SRESIDENCE” series of high-quality condominiums that
the Samty Group is developing, based on the sponsor
support agreement.
 Preferential negotiation rights are granted for someof the properties owned by Samty Co., Ltd.

34

Growth Support Through Sponsor Support
Samty’s Plans for Residential Development

Samty’s Plans for Acquisition of Profitable Properties 24 properties (1,786 units) completed by the second quarter of the fiscal
period ending November 30, 2022
 Development plans are in progress for a total of 143 properties andapproximately 10,413 units in cities across the country, and we willcontinue to promote our business in a flexible manner, taking into
consideration the characteristics of individual properties and market trends

 Acquired 30 profitable real estate properties worth approximately
18.9 billion yen in the first half of 2022

 The progress rate based on the price is 60.5%[Samty’s Plans for Residential Development]
Results(properties)80

24 properties out of
57 properties(1,786 properties outof 3,914 properties)

60

71 properties(5,027 units)

Plan

In the process of
procurement for2024 and later

39 properties(3,258 units)

43 properties(2,700 units)

 From the third quarter of 2022 onward, will focus on purchasing,with plans to acquire 15 profitable real estate properties worth
approximately 11.1 billion yen during the fiscal period ending
November 30, 2022

[Acquisitions] (Progress against Plan)
Plan for thefull period

49.5
billion yen

Up to the second quarter of the
fiscal period ending November 2022
Progress rate

Plan for thefull period

18.9
billion yen

38.2%

11.1
49.5
30.0
billion yen billion yen billion yen

20

60.5%

GreaterTokyo area

Chubu

Kansai

Chugokuand Shikoku

KyushuTotal

Acquisition/
Settlement Results(Up to the second
quarter)

8

6

3

5

5

3

30

Settlement planned

4

-

-

4

-

7

15

Total

12

6

3

9

5

10

45

Settlement planned
for the next period
and after

4

9

2

4

-

6

25

0
Fiscal period ending
November 2022
(Plan)

Fiscal period ending
November 2023
(Plan)

Fiscal period ending
November 2024
(Plan)(Source) SAMTY Co., Ltd.’s “Financial Result Explanatory Material: Second Quarter of Fiscal
Year Ending November 2022”(Note)The total number of developments completed and plans for development of
Samty’s own brand “S-RESIDENCE” and other investment propertiesProgressrate

Hokkaido(Cases)

Results +Settlement
plannedResults[Acquisition] (By Geographical Area)

40

Fiscal period ending
November 2021
(Results)

Fiscal period ending November 2022
Settlement
planned(Source) SAMTY Co., Ltd.’s “Financial Result Explanatory Material: Second Quarter of Fiscal Year Ending
November 2022”

As for residential development, development is planned for a total of 143 properties, or about 10,413 units(Note: As of May 31, 2022).
We have developed properties across the country, not focusing on particular geographical areas.
Acquisition of profitable properties have been exceeding the plan.
Residential development plans and acquisition plans for profitable properties have been progressing
steadily in regional cities, which is the main investment area of Samty Residential Investment Corporation.
Further development of pipelines is expected.

35

5. Sustainability Initiatives

Basic Philosophy of Samty Residential Investment Corporation
Basic Philosophy of Samty Residential Investment Corporation
As the only listed REIT with approximately 70% of its portfolio comprised of residential properties located in regional cities, Samty
Residential Investment Corporation believes that the effective use of funds raised from the capital market will provide lateral support tolocal governments promoting regional development.

Basic Philosophy of Samty Residential Investment Corporation (Excerpt)
Without bias toward the Greater Tokyo area, Samty Residential Investment Corporation, in a wide range of regional cities across Japan...aims toprovide residents with safe, secure, comfortable, and relaxing residences.
Furthermore, our policy is to actively consider investing in real estate such as apartments for students near academic facilities and properties
with nurseries or other childcare support-related facilities attached.
It is Samty Residential Investment Corporation’s basic philosophy that through these investment activities, the effective use of funds it has
procured from the capital market in medium- to long-term initiatives...
will provide lateral support to local governments which are actively promoting measures to create environments, services, employment
opportunities, etc. that are attractive to residents with originality and ingenuity, and thereby revitalizing Japan’s economy starting with its
regional cities.

Providing Investment Opportunities in
Properties Located in Regional Cities
With approximately 70% of its
portfolio invested in regional
cities, Samty Residential
Investment Corporation offers
investors the opportunity to makesmall-lot investments in realestate located in regional areas.

Number of owned properties
located in regional cities
Total value of owned properties
located in regional cities
Total unitholders of Samty
Residential Investment
Corporation

Providing Comfortable Spaces for the People Supporting
Infrastructure and Industries in Regional Cities
141 properties
122.9 billion yen
14,644(Note) The number of owned properties and the total valueof owned properties are as of August 31, 2022, andthe number of unitholders is as of the end of the
14th fiscal period ended July 31, 2022.

Creating Regional Employment
 Creating employment in major regional cities by
establishing satellite offices[B-29] S-FORT Nagasaki Daigaku Byoin-mae[C-10] S-RESIDENCE Yokosuka Chuo

Nagasaki-shi, Nagasaki

Yokosuka-shi, Kanagawa

With universities and university hospitals
located nearby, rental demand is expectedfrom students and hospital staff. As an
infrastructure facility located in a regional
city, it provides residents with safe, secure,comfortable, and relaxing residences.

This property has a long-term leaseagreement as company housing for a nearby
public hospital and is expected to generate
stable cash flow over the long term.
In addition to providing a comfortable living
space for people supporting the local
healthcare system, the building also houses
a nursery school on the first floor,
contributing to the creation of a community
offering long-term living appeal to local
residents.

On December 10, 2021, the Asset Management Company established a new
Asset Management Division and opened satellite offices in major regional
cities (Sapporo, Nagoya, Osaka, Hiroshima, and Fukuoka).
It will actively hire local people to staff the satellite offices, creating
employment and thereby promoting regional development.

 Creating regional employment by hiring PM/BM companies
By proactively hiring local companies that are familiar with the characteristics
of respective areas for project and building management (PM/BM) for theproperties it owns, Samty Residential Investment Corporation is creating new
regional employment and contributing to the revitalization of regional city
economies.

37

Sustainability Initiatives
Sustainability Policy/Promotion System
Samty Asset Management Co., Ltd., the Asset Management Company of
Samty Residential Investment Corporation, has established and puts
into practice the Sustainability Policy, based on the recognition thatmaking efforts to promote sustainability in consideration of theEnvironment, Social, and Governance when managing assets willcontribute to maximization of the interests of customers over the
medium to long term.
In order to put this policy into practice, a Sustainability Promotion
Office has been established to review and formulate various policies,
targets, and measures. In principle, the office holds regular meetings at
least once every three months and performs necessary administrative
work under the direction of the Chief Operating Officer.

Policy and Environmental Management System(EMS) Structure
In order to realize the individual items listed in the Sustainability
Policy on the left, we have established an “Energy Conservation
Policy” and “GHG Emissions Reduction Policy.” To implement thesepolicies, we will establish and implement an Environment
Management System (EMS) based on the PDCA cycle.

● Carrying out management
reviews (evaluation andimprovement guidance)● Formulating
environmental targets(figures)● Formulating
environmental action
plans

Act
Review/
improvement

Plan

Consideration for
the environment

Collaboration withstakeholders

Sustainability
policyDisclosure of
information

Improvement ofwork environment andeducation/training of
officers andemployees

Governance

Check
Inspections,forecast/
results
management● Checking environmental target
achievement progress● Checking implementation statusof environmental action plans● Forecast/results analysis● Carrying out corrective andpreventive measures

Do● Executing measures● Understanding results
figures● Carrying out training

Future Initiatives
October 2022: GRESB Real Estate Assessment
Results Announcement Planned First participated in 2021
 Based on the evaluation
results, will implement
specific measures forstructural strengthening
and reducing theenvironmental impact ofproperties owned

 Holding regular meetings based on the Sustainability
Promotion System rules to identify issues related toowned properties and internal regulations and systems
 Continuing to monitor energy consumption at owned
properties and promote specific measures to reduce
environmental impact
 Formulated the Procurement Policy for PM companies andsuppliers, striving to further collaborate with external
stakeholders

38

Sustainability Initiatives (1)-1 -EnvironmentList of Properties That Have Acquired Environmental Certification from External Evaluation Organizations
Acquired certification(continuously) August 8, 2022

Certified April 19, 2022

BELS
★★★★★

DBJ
Green
Building
B-46 S-FORT
Ichinomiya Honmachi

★★★

A-11
S-FORT
Nakajima Koen

B-05
S-RESIDENCE
Esaka* Since acquiringcertification in 2019,rank improved fromtwo stars to threestars in recognitionof energy-saving
measures such as theinstallation of LED
lighting and watersaving faucets, andthe implementationof resident
satisfaction surveys.

C-23
S-RESIDENCE
Motoyawata

A-62 S-FORTOsaka Doshin

Acquired certification (newly)
April 22, 2022

Status of Acquisition ofEnvironmental Certification(as of end of August 2022)

A-84 S-RESIDENCE
Joshin II

No. of properties

12 properties

Total floor space

38,065.09 m2

Proportion of properties
with certification(proportion of total
floorspace)

8.9%

B-45 S-FORT Utsunomiya
Minamiodori

A-71 S-FORT
Atsuta Hanacho

A-74 S-RESIDENCE
Aoi II

B-39 S-FORT
Niigata Ekimae

Acquired(newly)2 0 2 2 年 ８certification
月８日認証取得（新規）
August 8, 2022

DBJ
Green
Building★★
B-47 S-RESIDENCE
Senrioka

A-31 S-FORT
Tsurumai reale

Environmental Targets/Performance of Owned Properties◆ Target (Target year: 2025)◆ Environmental performance results
Item/Unit

FY2020

FY20212,754,600.0

2,723,760.0

Intensity (kWh/m )

31.8

31.5

Total use (t-CO2e)

1,225.8

1,179.4

Intensity (t-CO2e/m2)

0.01420.0136

Annual total energy use intensity

5% reduction vs. 2020
Annual GHG emissions
from energy use(Location basis) (Note 2)

Total use (kWh)Energy use(Note 1) Reduction target for Scope 1 (GHG emissions from fossil fuel consumption in common
areas) and Scope 2 (GHG emissions from electricity consumed in common areas).
(Note 2) GHG emissions for Scope 2 (GHG emissions from electricity consumed in common
areas) are calculated based on location.

-1.1%
2

(Average of 1% per year) (Note 1)
t-CO2eemissions

Reduction rate
(vs. 2020)

-3.8%

39

Sustainability Initiatives (1)-2 -EnvironmentExamples of Initiatives at Owned Properties◆ Sorting and managing waste and environmental improvement

14th FP New initiatives◆ CO2 emissions reduction by utilization of renewable energy We are introducing renewable energy power plans for electricity used in common
areas of some properties.
 In our plan, we add environmental value from non-fossil certificates with tracking
derived from renewable energy sources to the plan, resulting in electricity that is
virtually 100% renewable energy and compliant with RE100, an international
initiative on renewable energy use promoted by the Ministry of the Environment.
Number of properties introduced in the 14th fiscal period

 We are appropriately sorting and managing waste and are installing in-ceilingozone deodorizers at some properties as part of measures to reduce odors
from trash.
 We are providing energy-saving practice guides for households anddisplaying educational posters about the 3Rs (Reduce, Reuse, and Recycle),
to utilize limited resources.
(In-ceiling ozone
deodorizer equipment)

５ properties◆ Adoption of LED lighting for fixtures in common areas
We promote the reduction of electricity usage and a lower environmental impact byadopting LEDs for lighting in common areas such as entrances and corridors.
S-FORT Yokohama Aobadai

Number of properties introduced

82 properties / １７８ properties （Note）

Other Initiatives◆ Use of eco-friendly materials in printed materials for unitholders
 Using environmentally friendly FSC-certified paper and vegetable ink inprinted materials such as asset management reports for unitholders.
S-FORT Funabashi Tsukada

S-RESIDENCE Aoi II(Note) The values shown are as of August 31, 2022.

 In 2022, we changed the envelopes used for mailing materials to investors toones that use eco-friendly materials.

◆ Conclusion of green lease clauses (Note 1)
By working together with property management companies and tenants, Samty
Residential Investment Corporation promotes the conclusion of green leaseclauses seeking to reduce environmental burden.
Conclusion rate

36.0% （Note 2）(Note 1) This means that building owners and tenants collaborate to voluntarily decide the reduction ofenvironmental load such as energy saving of real estate as well as the improvement of work
environment by concluding contracts and memorandums, etc., and put the content of theagreement into practice.
(Note 2) Percentage of the total leasable area of the entire portfolio as of December 31, 2021.

◆ Installation of housing facilities that take energy
and resource conservation into consideration
We promote energy and resource conservation and the reduction of ourenvironmental burden by adopting water-saving faucets and toilets, multi-layered
glass, etc.

◆ Digitizing the prospectus In the August 2022 capital increase
through public offering, we provided
prospectus documents electronicallyto reduce environmental burden.
 This reduced approximately 900,000
A4 sheets of paper expected to be
used in the capital increase throughpublic offering.

◆ Introduction of electronic breakers
We promote the adoption as well as sequential switching to LED lighting to reduce
electricity usage.

40

Sustainability Initiatives (2)-1 -SocialInitiatives for Residents, Regions/Society (Community)◆ Installation of social contribution-type vending machines
We are installing social contribution-type vending machines that donate
some of the sales of the vending machine to organizations engaged insocial contribution activities, environmental conservation activities, etc.,
which serve as a tool for contributing to society in everyday life byenabling people to make donations by purchasing products, thus
contributing to local communities.

S-FORT Muromi

S-FORT Esaka Koen

[Recipient of support]
The Japanese Red Cross Society[Recipient of support]
Specified non-profit
organization green bird

◆ Installation of disastersupport-type vending machines◆ Installation of AEDs

We are installing disaster support-type
vending machines, which are equippedwith a function that offers products fromvending machines free of charge whendisasters occur, thereby contributing tolocal communities by utilizing a uniquefunction of vending machines to provide
support.

Samty Residential Investment
Corporation
promotes
installation of AED (automatedexternal
defibrillator)
tocontribute to peace of mind
and safety of residents as wellas community members.

◆ Installation of delivery boxes
Delivery boxes will be installed in sequencewith the aim not just of improving convenience
for residents, but also of reducing CO2
emissions by reducing redeliveries by delivery
companies.

Number ofproperties
introduced

１７３ properties /１７８ properties （Note）

S-FORT Hakata-Higashi I

S-FORT Meinohama(Note) The values shown are as of August 31, 2022.

◆ Disaster-prevention initiatives◆ Education topromote use of stairs

In order to provide a safe and secure residential space
to residents, at some properties we are sequentiallyintroducing disaster prevention facilities such as
rooftop waterproofing as well as installing disasterprevention cabinets in elevators and displaying disasterprevention posters in preparation for disasters liketyphoons and earthquakes.

In order to promote healthamong residents, we havedisplayedposters
promoting the use of thestairs beside the elevators
in some buildings.

<Goods provided indisaster prevention
cabinets>
S-FORT Yokohama
Aobadai

S-FORT Yokohama
Aobadai◆ Conducting tenant satisfaction surveys
We are conducting feedback meetings with property managementcompanies based on survey results and promote consideration of new
facility installation and review of operational systems with an aim to
improve tenant satisfaction.

S-FORT Saikotori<Disaster prevention map>

41

Sustainability Initiatives (2)-2 -SocialInitiatives for Investors/Information Disclosure◆ Proactive disclosure of information and IR activities
We prepare materials, build websites, implement disclosure in a timely mannerand disclose information in Japanese and English with visibility in mind byplacing emphasis on appropriate information disclosure to all investors.
Samty Residential Investment Corporation proactively discloses information on
the status of properties, etc. on the website when disasters such as typhoons
and earthquakes occur at the areas where its properties are located.
Samty Residential Investment Corporation publishes articles featuring regional
cities in the asset management report under its philosophy of “revitalizing
Japan’s economy starting with its regional cities.” It has featured Osaka, Kyoto,
Niigata, Fukuoka, Sapporo, Nagasaki, Shizuoka, Shiga, Chiba, and Kumamoto sofar.
We regularly hold online and phone teleconferences with institutional investors
in Japan and overseas institutional investors in Europe and Asia.
(An example of features on regional cities in the asset
management report (available only in Japanese) issued
every fiscal period to unitholders)

December 2021 Organized by Daiwa Securities
Presented at Daiwa J-REIT Yokohama caravan

Initiatives for Employees of the Asset Management Company◆ Capacity development/personnel training◆ Impact of COVID-19 countermeasures

We are making the following efforts to develop human resources with highexpertise and a wide range of knowledge and to build a comfortable working
environment where employees can fully demonstrate their abilities.

 Establishment and implementation of remote
work regulations

 Support for qualification acquisition

 Providing all employees with laptop PCs andsmartphones

 Support for training and implementation of Introduction of hot desking system Recommending remote work to curb commuting

in-house training Encouragement of off-peak commuting

 Implementation of regular health checkups

 Introduction of web-conferencing system

 Promotion of work-life balance Installation of partitions on each desk

 Whistleblowing system named “Samty Asset Hotline" Installation of acrylic panels to prevent the
spread of droplets at customer reception spaces
and meeting rooms

 Carrying out employee satisfaction surveys
 Installation of break spaces[License Holders] Placement of disinfectant
 Renewal of internal systems to strengthen
information security

Number ofpeopleReal estate transaction
specialist (Note)

５６

ARES Certified Master

１０

Real estate appraiser

５(Note) Including those who passed the qualification exam

Working space withpartitions

 Providing vaccination opportunities throughoccupational vaccinations

Customer reception space
supporting web-conferencing
Newly installed break space42

Sustainability Initiatives (3) -GovernanceDecision-Making Procedures Concerning Transactions
with Interested Parties, Etc.

Every month, we decide a theme and conduct compliance training for all
officers and employees.
The status of training held from March 2022 to September 2022 is as follows.

Resolution by Boardof Directors

Deliberation and approval
by Board of Directors of
Samty Residential

Deliberation andapproval by Board of
Directors

Deliberation and approval
by Residential REIT
Investment Committee◆ Compliance training

The acquisition or sale of assets by Samty Residential Investment Corporation will be
managed through a transparent decision-making process.
Voluntary rules have been established on transactions with interested parties, etc. withan aim to prevent harm to the interests of Samty Residential caused by conducting
transactions with such parties.
Deliberation and approval by
Residential REIT Compliance
Committee

The Asset Management Company has set forth compliance with laws andregulations as a management policy, and the management team actively
endeavors to develop and strengthen systems for compliance with laws andregulations and internal control systems. To create appropriate operational
systems, the Asset Management Company has appointed a Senior
Compliance Officer as a manager responsible for matters related tocompliance and ensures the effectiveness of internal control functions atother departments. Furthermore, with the establishment and operation of
the Residential REIT / Compliance Committee, the Asset Management
Company will establish a multi-layered system for compliance with laws,
regulations, etc.

Examination by Senior
Compliance Officer◆ Internal compliance systems

Proposal by Residential
REIT Division

Compliance

Instructions to cancel or change details of the proposal

Same-Boat Investment by Samty Co., Ltd., the Main Sponsor
Month held

Theme

March 2022

Internal fraud prevention: Mechanisms for fraud
occurrences

April 2022

Internet literacy: Handling social media

May 2022

Key points in drafting and checking contracts

June 2022

Harassment

July 2022

What are laws and regulations requiring
compliance?

August 2022

In order to match the interests of unitholders and sponsors, Samty Residential
Investment Corporation and the Asset Management Company have confirmed with eachother the intent of Samty Co., Ltd. to sincerely consider the acquisition of part of theinvestment units when Samty Residential Investment Corporation newly issues
investment units and the intent of Samty Co., Ltd. to continue to hold the investment
units unless there are special circumstances when holding the investment units of Samty
Residential Investment Corporation in the main sponsor support agreement.
As of July 31, 2022, Samty Co., Ltd. held 104,042 units, and had a holding ratio of 13.5%.
In a capital increase by third-party allotment conducted in August 2022, we allotted
9,341 units.
(units)Units held (left axis)

Ownership ratio (right axis)

120,000

16.0%

13.5%

Fundamentals of information protection

13.5%

13.5%

13.5%

104,042

104,04214.0%
100,000

September 2022

Outline of the Act on Prevention of Transfer of
Criminal Proceeds

Accumulative Investment System of Investment
Units and Investment Unit Ownership Program
We aim to raise the awareness of the officers and employees of Samty Co.,
Ltd. and Samty Asset Management Co., Ltd. on the business performance ofSamty Residential Investment Corporation through the system and intend to
improve medium- to long-term unitholder value by matching our interests
with those of Samty Residential Investment Corporation’s unitholders.

12.0%

9.9%

80,0009.9%

86,337

86,33710.0%

8.0%

60,000

6.1%

6.1%
5.3%
4.4%

40,000

4.4%

4.4%

58,386

5.0%

58,386

5.0%

6.0%

4.0%
20,00024,27410,00010,00012,374

12,37425,20525,2052.0%

12,3740.0%

0Jan. 2016 Jul. 2016 Jan. 2017 Jul. 2017 Jan. 2018 Jul. 2018 Jan. 2019 Jul. 2019 Jan. 2020 Jul. 2020 Jan. 2021 Jul. 2021 Jan. 2022 Jul. 2022
(1st FP) (2nd FP) (3rd FP) (4th FP) (5th FP) (6th FP) (7th FP) (8th FP) (9th FP) (10th FP) (11th FP) (12th FP) (13th FP) (14th FP)

43

6. Appendix

Features of Samty Residential Investment Corporation
and Portfolio Development Policy
Features of Samty Residential Investment Corporation

Portfolio Development Policy
Investment Ratio by Asset Class (Note 1)(１) Investment inresidence which isa highly stableasset class

Residential properties
80% or more

Operatingfacilities
20% or less

Focus on single and compact typeresidences
Single Type

Floor per unit of less than 30 m2

Compact Type

Floor per unit of between 30 m2
and less than 60 m2

Investment Ratio by Geographical Area (Note 2)(2) Diversification of
portfolio primarily inmajor regional cities

Major regional
citiesOther regional
citiesGreater Tokyoarea

50% or more

20% or less

Around 30%(Regional cities(Sapporo, Sendai, Nagoya,
Kyoto, Osaka, Kobe, Hiroshima excluding major
regional cities)
and Fukuoka)(Tokyo, Kanagawa,
Saitama, Chiba)

Regional cities around 70%(3) Solid sponsor
structure consistingof real estate andfinancial sponsors

Property
Acquisition
Pipeline
StableFinancing
System(Note 1) “Residential properties” represents rental housing and “Operating facilities” represents hotels, health care properties and other operating facilities.
(Note 2) “Investment ratio" is based on acquisition price (excluding expenses and taxes associated with acquisition). The above investment ratios are future targets and actual portfolio composition may vary.

45

Distribution Policy
Cash Management Strategy

Cash will be allocated based on a comprehensive
review of the external economic environment,
real estate market conditions, and financial
condition of Samty Residential Investment
Corporation

Capital expenditures
to maintain building
functions, etc.

Distributions in Excess of Earnings(1) Determination of distributions
With a view to enhancing unitholder
value over the medium to long term,
distributions in excess of earnings areauthorized when Samty Residential
Investment Corporation’s portfolio
meets the conditions indicated on theright.

Appraisalvalue total
amountNext fiscal
periodCAPEX
After
adjustmentbook value
total amount(*)(Note) Excluding amount equivalent to incidental
expenses upon acquisition

Securement ofworking capital on
hand, etc.

(2) Determination of amount of distributions in excess of earnings

Optimally allocate free cash to eachof the following measures from the
cash after distribution
Return to unitholders
including distribution inexcess of earnings

Rent
Expense・
Selling,
general andadministrative
expenses・
Non-operating
Expenses, etc.

The policy is to distribute at a payout ratio of
70%, but we will comprehensively judge various
circumstances and determine the distribution
level for each calculation period while
reserving the repair costs and capital
expenditures to maintain the functions of
owned assets over time and maintaining soundfinancial stability.

RentalRevenue
Depreciation

 Reinforcementof the financialbase by reducing
interest-bearing
liabilities, etc.

 Investment thatshould help
enhance theportfolio’s
profitability(Note) Based on the characteristics of the portfolio, Samty Residential Investment
Corporation will optimally distribute free cash flow after allocating funds toreserves for capital expenditures to maintain the building functions,working capital and such, in accordance with the situations of the time.

Distribution in
Excess ofEarnings

Current
fiscal period
Net income

Distribution

Distribution payout ratio
aiming for 70%(However, distributions
in excess of earnings will
be up to 35% ofdepreciation)(Note) Payout ratio = Total distribution amount (including distributions in excess of earnings) / (Net income + Depreciation)46

Sponsor Structure of Samty Residential Investment Corporation
36.９% (Note 2) (Capital and business alliance)[Main Sponsor][Asset Management Company][Sub-sponsor]
33.0%

67.0%

(Asset management)[Samty Residential
Investment Corporation]

40.2% (Note 3)

13.5%(Consolidated subsidiary)(Note 4)Sponsor Support

Samty Residential Investment Corporation aims to develop and acquire
properties in a wide range of regional cities in Japan and realize efficientleasing and operation through the utilization of Samty’s resources andexpertise accumulated as a comprehensive real estate group.






Stable supply of new properties
Enhancement of added value by running a unified brand
Provide warehousing function
Provide human resources / operation management support

Samty Residential Investment Corporation aims to maintain and expand
its stable fund procurement system with the utilization of the functions
and network of Daiwa Securities Group Inc. as a comprehensive
securities group as well as reduce financial costs by increasing
credibility based on the solid financial base and network of Daiwa
Securities Group.






Reduction of financial cost
Support for maintenance and expansion of stable fundprocurement system
Support for the formation of bridge fund
Cooperation in securing staff(Note 1) Figures for the investment ratio in the sponsor structure are calculated by dividing the number of shares (investment units) held as of July 31, 2022, by the number of shares (investment units) (including treasury shares(investment units)).
(Note 2) The investment ratio from Daiwa Securities Group Inc. to Samty Co., Ltd. is based on the assumption that the second unsecured convertible corporate bonds with stock acquisition rights, for which payment was completed
on November 10, 2021, were all converted at the conversion price of 2,806.9 yen (adjustment applied on: February 25, 2022).
It includes the ownership ratio of Daiwa PI Partners Co., Ltd., which is a consolidated subsidiary of Daiwa Securities Group Inc.
(Note 3) It includes equity in Daiwa PI Partners Co., Ltd. (1.4%), which is a subsidiary of Daiwa Securities Group Inc.
(Note 4) Samty Residential Investment Corporation is expected to fulfill requirements to be a non-family company in the conduit requirements and has agreed with Daiwa Securities Group Inc. on conducting necessary cooperation
so that the requirements to be a non-family company are maintained.

47

Overview of Samty Residential Investment Corporation
Overview of Samty Residential Investment Corporation
Name

Samty Residential Investment Corporation(Abbreviation: SRR)

Location

1-8-3 Marunouchi, Chiyoda-ku, Tokyo

Executive Director

Masafumi Takahashi

Date of listing

June 30, 2015

Securities code

3459

Fiscal period ends

January and July

Samty Residential Investment
Corporation< Structure >Asset Custodian

General Administrative Agent
for Accounting Operations

Mizuho Trust & Banking Co., Ltd.
Samty Residential Investment
Corporation

Transfer Agent

Unitholders' Meeting

Mitsubishi UFJ Trust and Banking
Corporation

Board of Directors
Executive Director:
Masafumi Takahashi

General Administrative
Agent for Institutional
Operations
Mizuho Trust & Banking Co., Ltd.

Supervisory Director:
Takahiro Fujiki
Supervisory Director:
Takeo Nakahara

Independent Auditor
Ernst & Young ShinNihon LLC

Reiwa Accounting Holdings
Co., Ltd.
(Part of accounting operations
and tax operations)Reiwakaikeisha Tax Corporation(Part of tax operations)

General Administrative Agentfor Investment Corporation
Bonds
Shinsei Bank, Limited
Mizuho Bank, Ltd.

SponsorSamty Co., Ltd.
Daiwa Securities Group Inc.

Asset Management Company
Samty Asset Management Co., Ltd.

① Asset Management Agreement ② Asset Custodian Agreement ③ Transfer Agent Agreement④ General Administrative Agreement (Institutional Operations and Administration)⑤ Sponsor Support Agreement ⑥ Accounting Administration Agreement and Certified Tax Accountant Services Agreement⑦ Financial Affairs, Issuance, and Payment Agency Agreement48

Overview of Asset Management Company
Overview of Asset Management Company
Samty Co., Ltd. 67.0%(Tokyo Stock Exchange Prime Market,
Securities code: 3244)

Samty Asset Management Co., Ltd.

Name

1-8-3 Marunouchi, Chiyoda-ku, Tokyo

Location

Shareholders

Representative
Director

Masafumi Takahashi

Establishment

August 17, 2007

Daiwa Securities Group Inc. 33.0%(Tokyo Stock Exchange Prime Market,
Securities code: 8601)

120 million yen (as of April 27, 2022)

Capital< Organization Chart >Business
description

Investment management, real estate advisoryand building lots and building transactions

Shareholders Meeting

Statutory Auditor

Board of Directors
Investment Committee

Compliance Committee

Residential REIT / Investment Committee

Residential REIT / Compliance Committee

Hotel REIT / Investment Committee

Representative Director,
PresidentInternal Audit
Department

Compliance Team

Asset Management
Division
Asset Management
Department

Residential REIT Division

Investment Department

Hotel REIT / Compliance Committee

Acquisition Department

Asset Management
Department

Hotel REIT Division

Asset Management
Department

Business Management
Division
REIT Investor Relations,
Finance & Planning Department
Business Management
Department

49

Overview of Main Sponsor
Overview of Samty Co., Ltd.
Listing
Establishment

Location of head
officePost and name ofrepresentative
CapitalBusiness
description
Operating results(consolidated basis)(Fiscal period ended
November 2021)
Number of employees

Overview of Samty GroupTokyo Stock Exchange Prime Market(Securities code: 3244)

Distributions (planned)

December 1, 1982

Same-Boat Investment / Sponsor Support[Osaka Head Office]1-8-39 Nishimiyahara, Yodogawa-ku, Osaka-shi

Distribution
Samty Co., Ltd.
Same-Boat Investment / Sponsor Support[Tokyo Head Office]1-8-3 Marunouchi, Chiyoda-ku, TokyoAM

Yasuhiro Ogawa,
Representative Director and President

Samty Asset Management
Co., Ltd.
Investment managementbusiness, etc.

20,657 million yen （ (as of May 31, 2022)

AM Fee / Acquisition andselling fee

Real estate development business, real estatesolution business, real estate leasing business,
hotel development, ownership, and managementbusiness, etc.
Property management /Constructions

Net sales: 90,460 million yen

Property management fee /construction fee

Management of rental
properties / constructions/renovations

Capital andbusiness alliance
Strategiccollaboration

Samty Residential
Investment Corporation(Abbreviation: SRR)

Main sponsor

Samty Property
Management Co., Ltd.

Ordinary income: 8,105 million yen
456 on a consolidated basis (as of May 31, 2022)

Overview of REITs
managed by Samty
Group

Samty Co., Ltd.
Support for property
acquisition pipeline◆ Ads featuring “Samty the Dog” currently being shown
Hotel management(planned)

We are broadcasting TV ads that express
our slogan, “Samty, Beyond real estate,”
which we formulated in August 2021.
Celebrity Ayako Imoto provided the voiceof the main character, Samty, and sang
the theme song.

Sub-sponsor

Samty Hotel Management
Co., Ltd.
Hotel operations

Management fees, etc.
(planned)

Daiwa Securities Group Inc.
Stable Financing Support◆ Appointed official sponsor of ORIX BUFFALOES
We have been appointed theofficial sponsor of the ORIX
BUFFALOES, a pro baseball team,from the 2022 season.
Our logo is displayed on the left
sleeve of players’ uniforms, andads are displayed on the outfield
fence of the KYOCERA DOMEOSAKA.

SAMTY ASIA INVESTMENTS
PTE.LTD.
Overseas investment/
investment management, etc.

SAMTY VIETNAM CO.,LTD.
Construction supervision/fund management

Distribution
Daiwa Securities GroupInc.

Samty Japan Hotel
Investment Corporation
Established November 2021

Same-Boat Investment (Consolidated subsidiary) /Sponsor Support

Wealth Management, Inc. (equity-method affiliate)
Hotel rejuvenation, development, and investment business, etc.

50

Business Model of the Main Sponsor
Income Gain Business

Capital Gain Business
Real estate development business
Engaged in property development business of Samty Group. Develops
and provides rental condominiums, hotels and office buildings for realestate funds, such as “S-RESIDENCE” series for rental condominiums
and “S-PERIA” series for hotels.

Real estate leasing businessThis business generates stable income by holding properties developed internally or
acquired from outside sources, and is positioned as the core of the income gain
business. Other investment dividends from REITs are also included in this businesssegment.

Real estate solution business
Acquire existing profitable properties with high potential in the market
and enhance their values with an aim to resell to REITs or corporates.

Hotel leasing and operation business
Receives room revenues and ongoing management fees from hotels owned by Samty andhotels managed by Samty Group, etc.
In addition, dividend income from investments in hotel-related funds is also included inthis business segment.

(Overseas business)
The growth driver of the Group, investing and financing in properties
and projects in Asian countries and elsewhere.
Have been participating in “Smart City Development” project（ condominiums project ） in Hanoi since December 2020, working
together with major Vietnamese developer.

Real estate management businessIn addition to receiving fees for asset management (AM) and property management (PM)services for properties owned mainly by REITs, engages in construction and renovationof external properties and management of condominiums for sale.

Business model (domestic)

Driver for further
growthDue diligence/ Execution of investment

Income gain

Capital gain

Income gain

Build / Acquire

Lease

Sell

Entrusted

Owned in the company’s balance sheet

Sale to REITs, etc.

Management after sale

Business planning utilizing
the group’s resources

Income during the time
owned

Gain on sale at the time of
supplyReal estate development
business and real estate solution
business

Real estate leasing business andhotel leasing and operation
business

Real estate development
business and real estate solution
business

Expansion of fee-based
businesses bygroup companies

Rental income(Residence/Building, etc.)

Sponsoring REIT

Asset management fees

Hotel room income

Bridge fundProperty management fees

Dividend income

Other property markets

Management fees, etc.

Land procurement / Development /Commercialization
Procurement of Properties / Value Enhancement

Market research at the time ofleasing / selling
Income and expense
analysis/Investment Decision

Main customers

Hotel leasing and operation
business and real estate
management business

Planning anddevelopment ofproperties
Strategic selling(supply)

Capital gain
business(investment income)Overseasbusiness
Real estatedevelopment
business

Real estatesolutionbusiness

Steadily strengthen
the income base byimplementing the
medium-term
management plan
Contribution tosustainable management

Groupcompanies
involved

Income gain business(Rental revenue, etc.)
Hotel leasing andoperation business
Real estate leasing
business

Real estate
managementbusiness

51

Market Environment Concerning Residence Investments (1)Number of Rental Condominium Starts(unit)

Miyagi

Hokkaido
15,00012,000

Tokyo

6,000

40,0004,500

30,0003,000

20,0001,500

10,000

0

0

9,000

6,000

3,000

0

Aichi
10,000

Kyoto

8,000

Osaka
20,0004,000

16,000

3,000

6,000

12,000
2,000

4,000

8,000
1,000

2,000

0

0

Hyogo
5,000

4,000

4,000

0

Fukuoka

Hiroshima
4,000

3,000

3,000

15,00012,000

9,000
2,000

2,000

1,000

0

Source:

6,000
1,000

0

Prepared by Sumitomo Mitsui Trust Research Institute Co., Ltd. based on “Housing Starts Statistics” of the Ministry of Land, Infrastructure,
Transport and Tourism

3,000

0

52

Market Environment Concerning Residence Investments (2)Number of Households(households)

Sapporo-shi
1,120,000

Sendai-shi
5,200,000

540,000
520,000

1,080,000

Tokyo 23 wards

5,000,000

500,000
1,040,000

4,800,000
480,000

1,000,000

4,600,000
460,000

960,000

4,400,000

440,000

920,000

420,000

Nagoya-shi

4,200,000

Kyoto-shi

Osaka-shi

1,140,000

700,000

1,500,000

1,080,000

680,000

1,425,000

1,020,000

660,000

1,350,000

960,000

640,000

1,275,000

900,000

620,000

1,200,000

Kobe-shi
750,000

735,000

Hiroshima-shi
580,000

Fukuoka-shi
840,000
800,000

560,000
760,000

720,000
540,000

720,000

705,000
680,000
690,000

675,000

Source:520,000
640,000
500,000

Prepared by the Sumitomo Mitsui Trust Research Institute Co., Ltd. based on “Population, Population Trends, and Number of Households
Based on the Basic Resident Registers” Local Administration Bureau, Ministry of Internal Affairs and Communications

600,00053

Market Environment Concerning Residence Investments (3)Net Migration(People)Sapporo-shi

Sendai-shi

12,000

8,000

9,000

6,000

6,000

4,000

Tokyo 23 wards
80,00060,00040,00020,000
3,000

2,000

0

0

0

-20,000

Kyoto-shi

Nagoya-shi
10,000

2,000

8,000

1,000

6,000

0

4,000

-1,0002,000-2,0000-3,000

Osaka-shi
24,00018,00012,0006,000

0Fukuoka-shi

Hiroshima-shi

Kobe-shi
3,000

2,500

12,000

2,000

1,000

9,000

-500

6,000

-2,0003,000-3,50001,000
0-1,000-2,000Source:Prepared by the Sumitomo Mitsui Trust Research Institute Co., Ltd. based on “Population, Population Trends, and Number of Households
Based on the Basic Resident Registers” Local Administration Bureau, Ministry of Internal Affairs and Communications

54

Market Environment Concerning Residence Investments (4)Net Migration from within Each Urban Area

(People)Sapporo-shi
15,000Sendai-shi
40,00012,00012,000Tokyo 23 wards

20,000

9,000

9,000

0
6,000

6,000

-20,000
3,000

3,000

0

-40,000

0

Nagoya-shi-60,000

Osaka-shi

Kyoto-shi

10,000

1,000

8,000

0

6,000

-1,0004,000-2,0002,000-3,0000-4,00012,000

9,000

6,000

Kobe-shi

3,000

0

Fukuoka-shi

Hiroshima-shi

2,000

4,000

12,000

1,000

3,000

9,000

0

2,000

6,000

-1,000

1,000

3,000

-2,00000Source:Prepared by Sumitomo Mitsui Trust Research Institute based on “Report on Internal Migration in Japan Derived from the Basic Resident
Registration,” Statistics Bureau, Ministry of Internal Affairs and Communications

55

Unitholder Information
Number of Unitsby Unitholder Type

Number of Unitholders
by Unitholder Type(units)Individuals /Other102,824

Financial
Institutions
173,311

Foreigners
69,457

Financial
Institutions
72

Other domestic（people）
corporations
228
Foreigners
182

Total

Total

Individuals /Other
14,162Otherdomestic
corporations
424,034“Other domestic corporations” includes Daiwa Securities Group Inc. and Samty Co., Ltd.
Based on the unitholder registry at the end of the fiscal period ended July 2022 (14th fiscal period).
The same applies hereinafter.

Change in Ratio of Unitholders
Financial Institutions
Foreigners

Other domestic corporations
Individuals / Other

100%
90%
80%

18.7%
5.7%

19.1%
4.7%

17.5%

15.2%

14.4%

4.6%

6.0%

9.3%

13.4%

60%

52.2%

52.3%

Ownership
ratio

Daiwa Securities Group Inc.

298,440

38.8%

Samty Co., Ltd.

104,042

13.5%

The Master Trust Bank ofJapan, Ltd. (Trust Account)

44,205

5.7%

Custody Bank of Japan, Ltd.
(Trust Account)

41,685

5.4%

Kinki Sangyo Credit Union

18,4002.4%

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

14,746

1.9%

Daiwa PI Partners Co., Ltd.

10,858

1.4%

ＪＰ ＭＯＲＧＡＮ ＣＨＡＳＥ ＢＡＮＫ
３８５７７１

9,510

1.2%

SSBTC CLIENT OMNIBUS
ACCOUNT

6,902

0.9%

Daido Shinyokumiai

6,044

0.8%

9.0%

70%

50%

Name of unitholder

No. ofinvestment
units held
(units)

14,644

769,626 units(Note 1)
(Note 2)Major Unitholders

55.9%

55.2%

55.3%

55.1%

40%
30%
20%
10%

23.3%

23.9%

22.1%

23.7%

21.0%

22.5%

Major unitholders (top 10)

0%554,832

72.1%

End of the fiscal End of the fiscal End of the fiscal End of the fiscal End of the fiscal End of the fiscal
period ended
period ended
period ended
period ended
period ended
period ended
January 2020
July 2020
January 2021
July 2021
January 2022
July 2022(9th FP)(10th FP)
(11th FP)
(12th FP)
(13th FP)
(14th FP)

56

Portfolio List (as of the end of the 14th fiscal period) (1)Major Regional cities

Area

Property
No.

Property Name

LocationType

Acquisition period

A-01
A-04
A-05
A-06
A-07
A-08
A-09
A-10
A-11
A-12
A-13
A-17
A-19
A-20
A-22
A-23
A-24
A-25
A-26
A-27
A-28
A-30
A-31
A-32
A-33
A-34
A-35
A-36
A-37
A-38
A-39
A-40
A-41
A-42
A-43
A-44
A-45
A-46
A-47
A-48
A-49
A-50
A-51
A-52
A-53
A-54
A-55
A-56
A-57
A-58
A-59
A-60
A-61
A-62
A-63
A-64
A-65
A-66
A-67
A-68
A-69

S-FORT Shin Osaka ravir
S-FORT Chikushi DoriS-FORT Fukuoka Kencho Mae
S-FORT Takamiya
S-FORT Tsutsujigaoka Koen
S-RESIDENCE Namba Briller
S-FORT Tsurumai marks
S-FORT Rokuban-cho
S-FORT Nakajima Koen
S-FORT Hokudai Mae
S-RESIDENCE Kobe Isogamidori
S-RESIDENCE Shin Osaka Ekimae
S-FORT Aoi
S-FORT Kurumamichi
S-FORT Tsurumai arts
S-FORT Tsurumai cube
S-FORT Fukuoka Higashi
S-RESIDENCE Kobe Motomachi
S-FORT Kobe Kaguracho
S-FORT Nijo-jo mae
S-FORT Chion-in mae
S-RESIDENCE Midoribashi Ekimae
S-FORT Tsurumai reale
S-FORT Osu Kannon
S-FORT Kita-Sanno
S-FORT Aratamabashi
S-FORT Toyohira Sanjyo
S-FORT Kitamaruyama
S-FORT Hakata-Higashi I
S-FORT Hakata-Higashi II
S-FORT Kobe Sannomiya-Kita
S-FORT Nakahirodori
S-FORT Tsurumicho
S-FORT Aoba Kamisugi
S-RESIDENCE Shin Osaka Ridente
S-FORT Fukushima La Luna
S-FORT Fukushima Libre
S-FORT Kamiyashiro
S-RESIDENCE Miyanomori
S-FORT Higashi-Sapporo Nordo
S-RESIDENCE Aoi
S-RESIDENCE Shiga Hondori
S-FORT Kobe Ogawadori
S-FORT Sakuragawa Minami
S-FORT Fukushima EBIES-FORT Miyakojima Uchindai
S-FORT Miyakojima KERS
S-FORT Oimazato-Nishi
S-RESIDENCE Chikusa
S-FORT Sakurayama
S-FORT Sapporo N15
S-FORT Nangodori
S-FORT Meinohama
S-FORT Osaka Doshin
S-FORT Higashi Betsuin
S-FORT Moriyama
S-FORT Jingu Minami
S-FORT Atsuta Rokuban
S-FORT Kitachikusa
S-FORT Saikotori
S-FORT Fukuzumi

Yodogawa-ku, Osaka-shi
Hakata-ku, Fukuoka-shi
Hakata-ku, Fukuoka-shi
Minami-ku, Fukuoka-shi
Miyagino-ku, Sendai-shi
Naniwa-ku, Osaka-shi
Naka-ku, Nagoya-shi
Atsuta-ku, Nagoya-shi
Chuo-ku, Sapporo-shi
Kita-ku, Sapporo-shi
Chuo-ku, Kobe-shi
Higashi Yodogawa-ku, Osaka-shi
Higashi-ku, Nagoya-shi
Higashi-ku, Nagoya-shi
Naka-ku, Nagoya-shi
Naka-ku, Nagoya-shi
Hakata-ku, Fukuoka-shi
Chuo-ku, Kobe-shi
Nagata-ku, Kobe-shi
Nakagyo-ku, Kyoto-shi
Higashiyama-ku, Kyoto-shi
Higashinari-ku, Osaka-shi
Showa-ku, Nagoya-shi
Naka-ku, Nagoya-shi
Nakagawa-ku, Nagoya-shi
Minami-ku, Nagoya-shi
Toyohira-ku, Sapporo-shi
Chuo-ku, Sapporo-shi
Hakata-ku, Fukuoka-shi
Hakata-ku, Fukuoka-shi
Chuo-ku, Kobe-shi
Nishi-ku, Hiroshima-shi
Naka-ku, Hiroshima-shi
Aoba-ku, Sendai-shi
Yodogawa-ku, Osaka-shi
Kita-ku, Osaka-shi
Fukushima-ku, Osaka-shi
Meito-ku, Nagoya-shi
Chuo-ku, Sapporo-shi
Shiroishi-ku, Sapporo-shi
Higashi-ku, Nagoya-shi
Kita-ku, Nagoya-shi
Hyogo-ku, Kobe-shi
Naniwa-ku, Osaka-shi
Fukushima-ku, Osaka-shi
Miyakojima-ku, Osaka-shi
Miyakojima-ku, Osaka-shi
Higashinari-ku, Osaka-shi
Chikusa-ku, Nagoya-shi
Mizuho-ku, Nagoya-shi
Higashi-ku, Sapporo-shi
Shiroishi-ku, Sapporo-shi
Nishi-ku, Fukuoka-shi
Kita-ku, Osaka-shi
Naka-ku, Nagoya-shi
Moriyama-ku, Nagoya-shi
Atsuta-ku, Nagoya-shi
Atsuta-ku, Nagoya-shi

SingleCompact
SingleSingle / Commercial
Single / Compact / Family
SingleFamilySingle / Commercial
Compact / Family
Compact / Commercial
Single / Compact
Single / Compact
FamilyFamilyFamilyCompact / Family
Compact
Single / Compact
SingleSingle / Compact / Family
Compact / Family / Commercial
SingleCompact / Family
Single / Compact
Compact
Compact
Compact
Compact
Single / Compact
Single / Compact
SingleSingleCompact / Family
Compact
SingleSingle / Compact
SingleSingleFamilyCompact
SingleSingleSingle / Compact
Single / Compact
SingleSingle / Compact
Single / Compact
SingleSingleCompact
Compact / Office
Compact
Single / Commercial
FamilyCompact
Single / Compact
Single / Compact
Single / Compact / Commercial

Chikusa-ku, Nagoya-shi
Atsuta-ku, Nagoya-shi
Toyohira-ku, Sapporo-shi

Compact
Family / Commercial
Compact

April 15, 2015
May 1, 2015
April 15, 2015
May 1, 2015
April 15, 2015
July 1, 2015
July 1, 2015
July 1, 2015
July 1, 2015
July 1, 2015
July 1, 2015
August 2, 2016
August 2, 2016
August 1, 2016
August 2, 2016
August 2, 2016
August 2, 2016
August 2, 2016
August 2, 2016
August 2, 2016
August 2, 2016
February 1, 2018
February 1, 2018
March 1, 2018
February 1, 2018
February 1, 2018
February 1, 2018
February 1, 2018
February 1, 2018
February 1, 2018
February 1, 2018
February 1, 2018
February 1, 2018
February 1, 2018
August 28, 2018
August 28, 2018
August 28, 2018
August 28, 2018
August 28, 2018
August 28, 2018
February 28, 2019
March 29, 2019
March 29, 2019
August 26, 2019
August 26, 2019
August 26, 2019
August 26, 2019
August 26, 2019
August 26, 2019
August 26, 2019
September 30, 2019
August 26, 2019
August 26, 2019
August 3, 2020
August 3, 2020
August 3, 2020
August 3, 2020
November 30, 2020
November 30, 2020
November 30, 2020
November 30, 2020

A-70

S-FORT Muromi

Sawara-ku, Fukuoka-shi

Single / Compact

November 30, 2020

Balance sheet
Acquisition
Appraisal
Investment amount at end
price
value
of period
ratio(million yen)(million yen)(million yen)
635
0.4%
649
718
Pass-through-type
1,170
0.8%
1,130
1,360
Pass-through-type
979
0.7%
948
1,150
Pass-through-type
794
0.5%
722
922
Pass-through-type
1,340
0.9%
1,293
1,550
Pass-through-type
2,020
1.4%
1,944
2,550
Pass-through-type
1,020
0.7%
984
1,490
Pass-through-type
722
0.5%
673
834
Pass-through-type
1,590
1.1%
1,570
1,740
Pass-through-type
690
0.5%
672
849
Pass-through-type
2,470
1.7%
2,364
3,090
Pass-through-type
2,489
1.7%
2,399
3,030
Pass-through-type
870
0.6%
891
1,070
Pass-through-type
400
0.3%
405
468
Pass-through-type
680
0.5%
695
884
Pass-through-type
570
0.4%
558
710
Pass-through-type
1,900
1.3%
1,897
2,130
Pass-through-type
1,200
0.8%
1,153
1,470
Pass-through-type
1,858
1.3%
1,817
2,350
Pass-through-type
812
0.6%
790
927
Fixed-rent-type
500
0.3%
492
551
Fixed-rent-type
1,846
1.3%
1,834
2,220
Pass-through-type
1,571
1.1%
1,561
1,950
Pass-through-type
1,147
0.8%
1,166
1,430
Pass-through-type
841
0.6%
837
890
Pass-through-type
449
0.3%
460
469
Pass-through-type
762
0.5%
783
812
Pass-through-type
425
0.3%
434
467
Pass-through-type
389
0.3%
430
425
Pass-through-type
382
0.3%
422
426
Pass-through-type
515
0.3%
533
552
Pass-through-type
885
0.6%
883
906
Pass-through-type
820
0.6%
821
834
Pass-through-type
918
0.6%
958
1,050
Pass-through-type
1,338
0.9%
1,335
1,550
Pass-through-type
896
0.6%
894
1,010
Pass-through-type
538
0.4%
543
606
Pass-through-type
429
0.3%
433
449
Pass-through-type
660
0.4%
662
694
Pass-through-type
303
0.2%
308
328
Pass-through-type
1,484
1.0%
1,480
1,720
Pass-through-type
1,150
0.8%
1,147
1,270
Pass-through-type
599
0.4%
613
627
Pass-through-type
1,056
0.7%
1,087
1,180
Pass-through-type
538
0.4%
552
619
Pass-through-type
456
0.3%
468
481
Pass-through-type
342
0.2%
353
360
Pass-through-type
331
0.2%
340
351
Pass-through-type
557
0.4%
566
628
Pass-through-type
766
0.5%
784
752
Pass-through-type
530
0.4%
549
560
Pass-through-type
297
0.2%
307
320
Pass-through-type
482
0.3%
494
524
Pass-through-type
1,765
1.2%
1,806
1,870
Pass-through-type
720
0.5%
738
723
Pass-through-type
460
0.3%
481
480
Pass-through-type
380
0.3%
397
454
Pass-through-type
734
0.5%
775
770
Pass-through-type
662
0.4%
700
714
Pass-through-type
395
0.3%
412
398
Pass-through-type
310
0.2%
328
314
Pass-through-type
Fixed-rent-type(Pass-through665
0.5%
683
722
type only forparking lot)
ML typeAppraisal
NOI yield
5.2%
5.4%
5.5%
5.5%
5.8%
5.1%
5.9%
5.1%
5.4%
5.5%
5.4%
5.0%
5.3%
5.6%
5.7%
5.4%
5.2%
5.4%
6.2%
5.0%
4.7%
5.1%
5.4%
5.5%
4.7%
5.3%
5.7%
5.3%
5.2%
5.3%
4.9%
5.0%
4.9%
5.5%
4.6%
4.5%
4.7%
5.4%
5.1%
5.7%
4.8%
4.8%
5.2%
5.3%
4.9%
4.4%
4.5%
4.6%
4.7%
4.8%
5.4%
5.8%
5.4%
4.4%
4.7%
5.5%
6.0%
4.8%
4.8%
5.3%
5.4%
5.2%

No. ofNo. ofTotal rentablerentableleased units
area
units
(unit)（m2）(unit)
49
48
1,290.84
90
89
3,706.56104
97
2,566.72
82
81
2,105.13
94
92
3,609.49
154
144
3,631.60
42
38
2,772.00
56
54
1,833.2975
71
5,292.65
59
57
2,287.22
166
162
4,372.45
167
165
4,534.98
28
25
1,842.68
19
19
1,214.20
28
27
1,988.5632
29
1,460.64
135
129
5,584.41
81
76
2,169.67
168
168
4,900.32
47
47
1,735.95
18
18
1,049.01
148
143
3,691.67
56
53
3,597.72
84
82
2,514.1236
35
1,757.61
29
28
1,699.11
63
62
2,868.75
49
49
1,613.38
35
35
1,034.20
35
35
1,034.20
4542884.8874
73
2,127.92
51
48
2,006.49
66
64
2,072.84
90
89
2,083.41
48
48
1,473.0436
34
900.7242
35
1,029.4222
22
1,954.8124
24
1,204.96
95
90
2,393.73
88
88
2,217.60
46
44
1,322.64
100
98
2,458.433630
1,044.72
28
27
789.742019720.6929
29643.7744
41
1,003.97
59
51
1,794.42
55
51
2,229.91
31
28
1,191.66
50
48
1,364.2836
35
2,597.52
56
54
1,684.48
54
54
1,590.84
39
33
1,003.64
57
52
1,637.4140
36
1,600.00
24
24
1,463.48
29
28
1,151.4487

87

1,848.00

Leased area（m2）

Occupancy
rate

1,264.70
3,664.96
2,393.96
2,080.29
3,553.45
3,392.83
2,508.00
1,771.28
5,014.30
2,212.91
4,271.71
4,484.75
1,645.25
1,214.20
1,917.54
1,299.03
5,335.89
2,034.80
4,900.32
1,735.95
1,049.01
3,565.59
3,387.64
2,468.20
1,699.10
1,640.52
2,830.36
1,613.38
1,034.20
1,034.20
826.532,100.33
1,914.68
2,008.80
2,061.50
1,473.04
850.78857.85
1,954.81
1,204.96
2,267.01
2,217.60
1,269.84
2,409.99
870.60759.43690.69643.77937.731,550.70
2,088.07
1,078.55
1,314.60
2,524.84
1,624.32
1,590.84
855.66
1,505.66
1,440.00
1,463.48
1,110.11

98.0%
98.9%
93.3%
98.8%
98.4%
93.4%
90.5%
96.6%
94.7%
96.8%
97.7%
98.9%
89.3%
100.0%
96.4%
88.9%
95.5%
93.8%
100.0%
100.0%
100.0%
96.6%
94.2%
98.2%
96.7%
96.6%
98.7%
100.0%
100.0%
100.0%
93.4%
98.7%
95.4%
96.9%
98.9%
100.0%
94.5%
83.3%
100.0%
100.0%
94.7%
100.0%
96.0%
98.0%
83.3%
96.2%
95.8%
100.0%
93.4%
86.4%
93.6%
90.5%
96.4%
97.2%
96.4%
100.0%
85.3%
92.0%
90.0%
100.0%
96.4%

1,848.00

100.0%

57

Portfolio List (as of the end of the 14th fiscal period) (2)Other Regional cities

Major Regional cities

Area

A-71

S-FORT Atsuta Hanacho

Atsuta-ku, Nagoya-shi

Compact

May 31, 2021

A-72

S-FORT Horitatori

Mizuho-ku, Nagoya-shi

May 31, 2021

Balance sheet
Acquisition
Appraisal
Investment amount at end
price
value
of period
ratio(million yen)(million yen)(million yen)
836
0.6%
875
903
Pass-through-type
487
0.3%
524
517
Pass-through-type

A-73

S-FORT Kego Tower

Chuo-ku, Fukuoka-shi

August 3, 2021

Pass-through-type

4,320

Property
No.

Property Name

LocationType

Acquisition period

ML typeAppraisal
NOI yield
4.5%

No. ofNo. ofTotal rentablerentableleased units
area
units
(unit)（m2）(unit)
36
35
1,510.56

Leased area（m2）
1,470.52

Occupancy
rate
97.3%

A-74

S-RESIDENCE Aoi II

Higashi-ku, Nagoya-shi

SingleCompact / Family / Office /Commercial
Single / Compact

August 3, 2021

Pass-through-type

1,820

1.2%

1,917

1,930

4.6%

95

93

3,215.72

3,137.47

A-75

S-FORT Meiekiminami 5-Chome

Nakamura-ku, Nagoya-shi

Single / Compact

August 3, 2021

Pass-through-type

６８４

0.5%

716

712

4.4%

41

40

1,450.31

1,420.86

98.0%

A-76

S-FORT Hakozaki Higashi

Higashi-ku, Fukuoka-shi

Single / Compact

August 3, 2021

Pass-through-type

６８０

0.5%

715

696

5.3%

66

63

2,360.60

2,262.92

95.9%

A-77

S-RESIDENCE Meiekiminami

Nakamura-ku, Nagoya-shi

SingleAugust 3, 2021

Pass-through-type

６６５

0.5%

694

685

4.2%

44

44

1,072.06

1,072.06

100.0%

A-78

S-FORT Kanayama

Nakagawa-ku, Nagoya-shi

Single / Compact

August 3, 2021

Pass-through-type

６１２

0.4%

642

623

4.7%

44

42

1,380.28

1,314.28

95.2%

A-79

S-FORT Izumi Chuo

Izumi-ku, Sendai-shi

Compact / Family

August 3, 2021

Pass-through-type

５４５

0.4%

573

567

5.8%

40

38

2,159.25

2,056.09

95.2%

A-80

S-RESIDENCE Soen EAST

Chuo-ku, Sapporo-shi

Compact

August 3, 2021

Pass-through-type

４７７

0.3%

512

496

4.9%

45

45

1,500.45

1,500.45

100.0%

A-81

S-FORT Yagoto

Pass-through-type

４４２

0.3%

468

447

4.9%

42

41

1,023.54

999.17

97.6%

A-82

S-FORT Sapporo Kita 5-Jo

Chuo-ku, Sapporo-shi

Compact

August 3, 2021

Pass-through-type

４０５

0.3%

441

418

5.3%

48

48

1,643.20

1,643.20

100.0%

A-83

S-FORT Sapporo Motomachi

Higashi-ku, Sapporo-shi

Compact / Commercial

August 3, 2021

Pass-through-type

３８５

0.3%

419

415

5.3%

33

32

1,363.97

1,321.43

96.9%

A-84

S-RESIDENCE Joshin II

Nishi-ku, Nagoya-shi

SingleNovember 30, 2021

Pass-through-type

７８７

0.5%

828

858

5.0%

58

58

1,486.62

1,486.62

100.0%

A-85
A-86
B-03

S-RESIDENCE Sengencho
S-FORT Taisho riviere
S-FORT Yokkaichi Motomachi

Nishi-ku, Nagoya-shi
Taisho-ku, Osaka-shi
Yokkaichi-shi, Mie

SingleSingleCompact

November 30, 2021
February 28, 2022
July 1, 2015

Pass-through-type
Pass-through-type
Pass-through-type

4４３
1,000
480

0.3%
0.7%
0.3%

471
1,059
457

501
1,010
620

4.9%
4.1%
7.0%

36
66
54

36
61
53

843.75
1,524.60
1,691.28

843.75
1,407.56
1,660.83

100.0%
92.3%
98.2%

Tempaku-ku, Nagoya-shi

Compact

August 3, 2021

4.9%

35

34

1,030.40

1,000.96

97.1%

2.9%

4,441

4,450

4.3%

130

126

7,415.36

7,224.70

97.4%
97.6%

B-04

S-FORT Suzuka

Suzuka-shi, Mie

Compact

July 1, 2015

Pass-through-type

580

0.4%

544

676

6.7%

69

68

2,286.69

2,256.24

98.7%

B-05

S-RESIDENCE Esaka

Suita-shi, Osaka

Single / Compact

August 2, 2016

Pass-through-type

2,323

1.6%

2,260

2,750

4.9%

138

129

3,739.30

3,508.32

93.8%

B-06

S-FORT Utsunomiya

Utsunomiya-shi, Tochigi

Compact

August 2, 2016

Pass-through-type

612

0.4%

602

733

5.8%

52

46

2,330.64

2,062.50

88.5%

B-07

S-FORT Yokkaichi Nishi Shinchi

Yokkaichi-shi, Mie

Compact / Family

August 2, 2016

Pass-through-type

630

0.4%

631

775

6.7%

60

58

2,192.48

2,101.60

95.9%

B-08

S-FORT Saga Honjo

Saga-shi, Saga

Compact / Office

August 2, 2016

Fixed-rent-type

1,050

0.7%

1,018

1,140

5.8%

127

127

4,972.84

4,972.84

100.0%

B-09

S-FORT Saga Idaimae

Saga-shi, Saga

Compact

August 2, 2016

Fixed-rent-type

100.0%

B-10

S-FORT Nishinomiya

Nishinomiya-shi, Hyogo

Single / Compact

February 1, 2018

Pass-through-type

Nishinomiya-shi, Hyogo

SingleFebruary 1, 2018

375

0.3%

357

433

6.5%

46

46

1,507.35

1,507.35

1,412

1.0%

1,419

1,600

5.2%

102

100

2,887.26

2,830.96

98.1%

Pass-through-type

789

0.5%

786

880

5.0%

62

60

1,546.28

1,496.40

96.8%

B-11

S-FORT Nishinomiya Uegahara

B-12

S-FORT Mito Chuo

Mito-shi, Ibaraki

FamilyFebruary 1, 2018

Pass-through-type

1,807

1.2%

1,793

2,110

5.5%

80

78

6,503.80

6,330.28

B-13

S-FORT Tsu Shinmachi

Tsu-shi, Mie

Compact

February 1, 2018

Pass-through-type

767

0.5%

778

852

6.0%

69

68

2,463.30

2,427.60

98.6%

B-14

S-FORT Mie Daigaku-mae

Tsu-shi, Mie

Compact

February 1, 2018

Pass-through-type

599

0.4%

606

643

5.9%

62

62

1,874.88

1,874.88

100.0%

1,015

0.7%

997

1,090

5.6%

92

86

3,588.84

3,380.11

94.2%

904

0.6%

894

942

5.5%

91

91

2,662.36

2,662.36

100.0%
100.0%

97.3%

B-15

S-FORT Takasagomachi

Oita-shi, Oita

Single / Compact / Family

February 1, 2018

Pass-through-type

B-16

S-FORT Oita Ekimae

Oita-shi, Oita

Single / Compact

February 1, 2018

Fixed-rent-type

B-17

S-FORT Oita Otemachi

Oita-shi, Oita

SingleFebruary 1, 2018

Fixed-rent-type

277

0.2%

282

308

5.7%

35

35

905.80905.80

B-18

S-FORT Suizenji

Chuo-ku, Kumamoto-shi

Single / Compact

February 1, 2018

Pass-through-type

1,332

0.9%

1,352

1,350

5.2%

119

109

4,256.91

3,972.60

93.3%

Chuo-ku, Kumamoto-shi

Compact

February 1, 2018

Pass-through-type

1,125

0.8%

1,100

1,120

5.3%

99

84

3,458.07

2,920.99

84.5%

3,224.24

2,851.77

88.4%

B-19

S-FORT Kumadaibyoin-mae

B-20

S-FORT Kumamoto Senba

Chuo-ku, Kumamoto-shi

Single / Compact / Family

February 1, 2018

Pass-through-type

1,010

0.7%

1,011

993

5.4%

91

78

B-21

S-FORT Esaka Tarumicho

Suita-shi, Osaka

SingleAugust 28, 2018

Pass-through-type

774

0.5%

770

872

4.9%

48

45

1,267.30

1,186.03

93.6%

B-22

S-FORT Niigata Honcho

Chuo-ku, Niigata-shi

Compact

August 28, 2018

Pass-through-type

960

0.7%

984

1,020

5.5%

83

70

2,604.25

2,210.95

84.9%
100.0%

B-23

S-FORT Motohama

Naka-ku, Hamamatsu-shi

SingleAugust 28, 2018

Pass-through-type

239

0.2%

250

250

5.7%

34

34

1,010.60

1,010.60

B-24

S-FORT Kumamoto Gofukumachi

Chuo-ku, Kumamoto-shi

Compact

March 29, 2019

Pass-through-type

599

0.4%

615

602

5.3%

54

50

2,290.68

2,121.00

92.6%

B-25

S-FORT Esaka Salita

Suita-shi, Osaka

SingleAugust 26, 2019

Pass-through-type

417

0.3%

428

435

4.6%

30

30

755.40755.40100.0%

B-26

S-FORT Esaka LIBERTS

Suita-shi, Osaka

SingleAugust 26, 2019

Pass-through-type

340

0.2%

355

355

4.8%

24

23

613.08586.31

95.6%

B-27

S-FORT Otsukawa

Handa-shi, Aichi

Single / Compact

August 26, 2019

Pass-through-type

657

0.4%

674

681

5.9%

63

61

3,250.36

3,132.86

96.4%

B-28

Saga-shi, Saga

Compact / Family

August 26, 2019

Pass-through-type

738

0.5%

776

771

5.9%

72

67

2,895.36

2,723.10

94.1%

Nagasaki-shi, Nagasaki

Single / Compact

August 26, 2019

Pass-through-type

1,340

0.9%

1,345

1,410

5.8%

110

106

3,721.97

3,566.75

95.8%

B-30

S-FORT Saga Tenjin
S-FORT Nagasaki Daigaku
Byoin-mae
S-FORT Kumamoto Keitoku

454

B-29

0.3%

468

447

5.0%

34

1,582.77

1,417.92

969

0.7%

1,035

1,050

5.7%

90

81

2,649.60

2,393.59

90.3%

Fixed-rent-type

1,465

1.0%

1,503

1,530

6.9%

181

180

5,813.49

5,813.49

100.0%

Pass-through-type

1,260

0.9%

1,290

1,320

4.4%

55

55

1,869.20

1,869.20

100.0%

Pass-through-type

732

0.5%

753

769

5.8%

82

78

3,067.08

2,917.52

95.1%

August 3, 2020

Pass-through-type

593

0.4%

614

589

5.7%

79

76

3,040.33

2,910.87

95.7%

Single / Compact

November 30, 2020

Pass-through-type

426

0.3%

488

420

5.6%

48

46

1,495.20

1,426.60

95.4%

Compact / Family

May 31, 2021

Pass-through-type

464

0.3%

484

500

5.6%

37

36

2,398.34

2,334.62

97.3%

Kokurakita-ku, Kitakyushu-shi

Compact / Family / Commercial

August 3, 2021

Pass-through-type

1,400

0.9%

1,453

1,430

5.4%

122

118

5,006.68

4,850.08

96.9%

S-FORT Niigata Ekimae

Chuo-ku, Niigata-shi

Single / Compact

August 3, 2021

Pass-through-type

1,395

0.9%

1,483

1,420

5.4%

94

93

3,303.57

3,263.15

98.8%

B-40

S-FORT Takasaki

Takasaki-shi, Gunma

FamilyAugust 3, 2021

Pass-through-type

1,098

0.7%

1,157

1,120

5.3%

48

47

3,775.68

3,697.56

97.9%

B-41

S-FORT Yokkaichi arcam

Yokkaichi-shi, Mie

FamilyAugust 3, 2021

Pass-through-type

８２３

0.6%

884

829

5.1%

42

40

2,604.42

2,480.40

95.2%

B-42

S-FORT Kagoshima Chuo

Kagoshima-shi, Kagoshima

Single / Compact

August 3, 2021

Pass-through-type

７８７

0.5%

830

791

5.2%

64

61

2,260.21

2,114.20

B-43

S-FORT Heisei Keyakidori

Minami-ku, Kumamoto-shi

Compact

Pass-through-type

７５５

0.5%

807

772

5.9%

90

84

3,699.42

3,459.37

93.5%

B-44

S-FORT Yokkaichi zeal

Yokkaichi-shi, Mie

Family

0.4%

657

616

5.1%

42

41

1,876.98

1,832.29

97.6%
100.0%

Chuo-ku, Kumamoto-shi

Compact / Commercial

August 26, 2019

Pass-through-type

B-31

S-FORT Shizuoka Tennocho

Aoi-ku, Shizuoka-shi

Single / Compact

February 3, 2020

Pass-through-type

B-32

S-FORT Konan Umekage I

Konan-shi, Shiga

SingleAugust 3, 2020

B-33

S-FORT Esaka Koen

Suita-shi, Osaka

Compact / Commercial

August 3, 2020

B-34

S-FORT Oita Kotobukimachi

Oita-shi, Oita

Compact

August 3, 2020

B-35

Chuo-ku, Kumamoto-shi

Compact / Family

Higashi-ku, Kumamoto-shi

B-37

S-FORT Hotakubo
S-FORT Kumamoto Kenritsu
Daigaku-mae
S-FORT Kasugai

Kasugai-shi, Aichi

B-38

S-FORT Kokura

B-39

B-36

August 3, 2021

38

89.6%

93.5%

Pass-through-type

６１２

B-45

S-FORT Utsunomiya Minamiodori

Utsunomiya-shi, Tochigi

Compact / Family

November 30, 2021

Pass-through-type

1,309

0.9%

1,391

1,330

5.1%

70

70

3,258.30

3,258.30

B-46

S-FORT Ichinomiya Honmachi

Ichinomiya-shi, Aichi

Compact

February 25, 2022

Pass-through-type

540

0.4%

587

575

5.2%

48

47

1,224.96

1,199.44

97.9%

B-47

S-RESIDENCE Senrioka

Settsu-shi, Osaka

SingleAugust 28, 2022

Pass-through-type

1,012

0.7%

1,086

1,070

4.6%

75

75

1,898.25

1,898.25

100.0%

August 3, 2021

58

Portfolio List (as of the end of the 14th fiscal period) (3)Greater Tokyo area

Area

C-01

S-FORT Maita Koen

Minami-ku, Yokohama-shi

Single / Compact

April 15, 2015

Balance sheet
Acquisition
Appraisal
Investment amount at end
price
value
of period
ratio(million yen)(million yen)(million yen)
987
0.7%
924
1,220
Pass-through-type

1,566.90

97.5%

C-02

S-FORT Nihombashi Hakozaki

Chuo-ku, Tokyo

Single / Compact

July 1, 2015

Pass-through-type

925

0.6%

929

1,120

4.6%

36

31

1,114.38

966.56

86.7%

C-04

S-FORT Shiomi

Koto-ku, Tokyo

SingleJuly 1, 2015

Pass-through-type

866

0.6%

832

1,070

5.1%

52

51

1,042.48

1,022.47

98.1%

C-06

S-FORT Shonan Hiratsuka

Hiratsuka-shi, Kanagawa

SingleJuly 1, 2015

Pass-through-type

818

0.6%

800

1,080

5.9%

66

64

1,717.46

1,666.76

97.0%

Property
No.

Property Name

LocationType

Acquisition period

ML typeAppraisal
NOI yield
5.1%

No. ofNo. ofTotal rentablerentableleased units
area
units
(unit)（m2）(unit)
70
68
1,607.40

Leased area（m2）

Occupancy
rate

C-07

S-FORT Nishifunabashi

Funabashi-shi, Chiba

Single / Compact

July 1, 2015

Pass-through-type

732

0.5%

700

844

5.1%

47

45

1,397.64

1,353.73

96.9%

C-08

S-FORT Maihama

Urayasu-shi, Chiba

SingleJuly 1, 2015

Pass-through-type

1,130

0.8%

1,148

1,400

5.3%

83

82

1,726.56

1,705.84

98.8%

C-09

S-FORT Ichikawa

Ichikawa-shi, Chiba

Single / Commercial

July 1, 2015

Pass-through-type

809

0.5%

812

887

4.9%

51

50

1,255.90

1,230.93

98.0%

C-10

S-RESIDENCE Yokosuka Chuo

Yokosuka-shi, Kanagawa

Single / Nursery

August 2, 2016

Fixed-rent-type

850

0.6%

823

985

6.0%

25

25

1,492.09

1,492.09

100.0%

C-12

S-FORT Hoya

Nishitokyo-shi, Tokyo

SingleFebruary 1, 2018

Fixed-rent-type

645

0.4%

642

886

5.7%

60

60

1,177.94

1,177.94

100.0%

C-13

S-FORT Tamagawagakuen-mae

Machida-shi, Tokyo

SingleFebruary 1, 2018

Pass-through-type

587

0.4%

595

683

4.7%

45

44

978.75957.00

97.8%

C-14

S-FORT Tsurukawa

Machida-shi, Tokyo

FamilyFebruary 1, 2018

Pass-through-type

520

0.4%

534

639

5.2%

30

29

1,886.70

1,823.81

96.7%

Kanagawa-ku, Yokohama-shi

SingleFebruary 1, 2018

Fixed-rent-type

627

772.38100.0%C-15

S-RESIDENCE Yokohama Tanmachi

C-16

S-FORT Chigasaki

Chigasaki-shi, Kanagawa

Single / Compact

February 1, 2018

C-17

S-FORT Kawaguchi Namiki

Kawaguchi-shi, Saitama

SingleFebruary 1, 2018

C-18

S-FORT Todakoen

Toda-shi, Saitama

Single

C-19

S-FORT Funabashi Tsukada

Funabashi-shi, Chiba

Compact

0.4%

625

751

5.0%

36

36

772.38Pass-through-type

1,137

0.8%

1,137

1,240

4.8%

36

36

1,382.17

1,382.17

100.0%

Pass-through-type

1,110

0.8%

1,110

1,210

4.7%

70

69

1,457.51

1,436.86

98.6%

February 1, 2018

Pass-through-type

914

0.6%

913

1,030

4.9%

62

61

1,438.71

1,415.33

98.4%

February 1, 2018

Fixed-rent-type

1,900

1.3%

1,907

1,970

4.9%

117

117

5,640.60

5,640.60

100.0%
100.0%

C-20

S-FORT Kashiwa

Kashiwa-shi, Chiba

Single / Compact

February 1, 2018

Pass-through-type

536

0.4%

544

580

4.9%

37

37

983.06

983.06

C-21

S-FORT Fujimidai

Nakano-ku, Tokyo

Single / Compact

August 28, 2018

Pass-through-type

1,150

0.8%

1,185

1,540

5.2%

61

58

2,054.86

1,968.34

95.8%

C-22

S-RESIDENCE Matsudo

Matsudo-shi, Chiba

SingleNovember 26, 2018

Pass-through-type

840

0.6%

841

939

4.7%

52

52

1,180.53

1,180.53

100.0%C-23

S-RESIDENCE Motoyawata

Ichikawa-shi, Chiba

SingleMarch 29, 2019

Pass-through-type

1,678

1.1%

1,685

1,870

4.5%

100

100

2,180.26

2,180.26

100.0%

C-24

S-FORT Kinshicho

Sumida-ku, Tokyo

Single / Office

August 26, 2019

Pass-through-type

1,510

1.0%

1,532

1,710

4.8%

93

84

1,956.87

1,777.80

90.8%

C-25

S-FORT Komazawa Daigaku

Setagaya-ku, Tokyo

Single / Compact

August 26, 2019

Pass-through-type

528

0.4%

536

557

3.9%

16

15

536.60496.18

92.5%

C-26

S-FORT Yokohama Aobadai

Aoba-ku, Yokohama-shi

Compact / Family

August 26, 2019

Pass-through-type

5,400

3.7%

5,461

5,730

4.2%

153

148

9,274.43

8,983.24

96.9%

C-27

S-FORT Aoba Shiratoridai

Aoba-ku, Yokohama-shi

Compact / Family

August 26, 2019

Pass-through-type

846

0.6%

866

880

4.7%

37

35

2,179.25

2,050.75

94.1%

C-28

S-FORT Kawasaki Shinmeicho

Saiwai-ku, Kawasaki-shi

Single / Compact / Family

August 26, 2019

Pass-through-type

609

0.4%

618

660

4.5%

32

31

994.63969.07

97.4%

C-29

S-FORT Motoyawata Mairie

Ichikawa-shi, Chiba

SingleAugust 26, 2019

Pass-through-type

0.5%

687

701

4.4%

40

39

C-30

S-FORT Funabashi roots

Funabashi-shi, Chiba

SingleJuly 31, 2020

Pass-through-type

815

0.6%

835

831

4.5%

59

56

1,201.50

1,140.40

94.9%

C-31

S-FORT Tama-plaza

Miyamae-ku, Kawasaki-shi

Compact

Pass-through-type

648

0.4%

663

699

4.7%

29

29

1,367.88

1,367.88

100.0%

August 3, 2020

678

826.18805.71

97.5%

C-32

S-FORT Odawara

Odawara-shi, Kanagawa

SingleAugust 3, 2020

Pass-through-type

613

0.4%

630

638

5.3%

49

47

1,279.24

1,226.64

95.9%

C-33

S-FORT Nakaitabashi

Itabashi-ku, Tokyo

Single / Compact

August 3, 2021

Pass-through-type

3,365

2.3%

3,459

3,460

4.0%

141

140

3,946.25

3,917.90

99.3%

C-34

S-FORT Kameido

Koto-ku, Tokyo

FamilyAugust 3, 2021

Pass-through-type

1,248

0.8%

1,290

1,290

4.4%

35

34

2,577.48

2,504.40

97.2%

C-35

S-FORT Gyotoku

Ichikawa-shi, Chiba

SingleAugust 3, 2021

Pass-through-type

９１９

0.6%

953

939

4.1%

50

49

1,283.80

1,258.94

98.1%

C-36

S-FORT Funabashi Kaijin

Funabashi-shi, Chiba

SingleAugust 3, 2021

Pass-through-type

８９８

0.6%

937

904

4.3%

64

64

1,512.96

1,512.96

100.0%

C-37

S-FORT Funabashi Honcho

Funabashi-shi, Chiba

SingleAugust 3, 2021

Pass-through-type

７６８

0.5%

799

776

4.6%

50

50

1,235.10

1,235.10

100.0%

C-38

S-FORT Hachioji

Hachioji-shi, Tokyo

SingleAugust 3, 2021

Pass-through-type

４６２

0.3%

486

474

5.1%

46

45

1,049.43

1,027.96

98.0%

C-39

S-RESIDENCE Kitasenju reiz

Adachi-ku, Tokyo

Single / Compact

February 28, 2022

Pass-through-type

1,200

0.8%

1,254

1,210

4.0%

46

46

1,432.67

1,432.67

100.0%

Total 159 properties

1４7,６05

100.0％

149,525

163,368

5.1%

10,036

9,673 346,698.11 334,279.57

96.4%

59

Balance Sheet(Unit: thousand yen)
13th fiscal period
14th fiscal period(as of January 31, 2022) (as of July 31, 2022)
AssetsLiabilities

Current assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption tax receivable
Other
Total-current assets

13th fiscal period
14th fiscal period(as of January 31, 2022) (as of July 31, 2022)

Current liabilities

3,051,921
2,365,556

2,957,767

Operating accounts payable

470,534

499,317

2,297,766

Current portion of long-term Investment
corporation bonds

1,000,000

1,000,000

Current portion of long-term borrowings

10,３８５,000

10,6８５,000

88,883

105,587

12,081

12,085

192,540

192,136

34,367－935

47,022

5,657,402

5,506,778

Non-current assets

Accounts payable – otherAccrued expenses
Distributions payable
Accrued consumption taxes

6,652

15,255

16,729－119,656７８８964

Advances received

738,479

754,375

Deposits received

13,365
12,717,019

15,837
13,204,121

Income taxes payable

Property, plant and equipment

4,711

9,772,948
5,416
26,014

10,165,088
6,459
25,06531,03435,135Land

11,448,470

11,623,401

Long-term borrowings

Buildings in trust

57,656,242

57,617,365

15,941

9,804

Machinery and equipment in trust

582,216

561,088

Tools, furniture and fixtures in trust

131,699

148,163

68,982,135

69,334,241

148,652,120

149,525,814

Software

2,206

1,749

Deduction from unitholders’ capital(2,114,927)(2,409,694)

Total intangible fixed assets

2,206

1,749

Unitholders’ capital, net

74,149,242

73,854,475

Unappropriated retained earnings(undisposed loss)

1,832,599

2,136,006

Total surplus

1,832,599

2,136,006

75,981,842

75,990,481

Buildings
Structures
Machinery and equipment
Tools, furniture and fixtures

Structures in trust

Land in trust
Total property, plant andequipment
Intangible fixed assets

3,200,000

3,200,000

62,350,000

62,550,000

Leasehold and guarantee deposits
received

86,09085,549Leasehold and guarantee deposits
received in trust

514,561

497,990

Investment corporation bonds

Total non-current liabilities
Total Liabilities

65,150,651

66,333,539

78,867,671

79,537,661

76,264,169

76,264,169

Net assets
Unitholders’ equity

Surplus8

17

Lease and guarantee deposits

11,746

11,699Long-term prepaid expenses

446,732

419,456

Total investment and other assets

458,487

431,174

149,112,814

149,958,738

Investment unit issuance expenses

41,60730,249Investment corporation bondissuance costs

37,68932,375

Total non-current assets

Non-current liabilities

Unitholders’ capital

Investment and other assets
Deferred tax assets

Total current liabilities

Total unitholders' equity
Total net assets
Total liabilities and net assets

75,981,842

75,990,481

154,849,513

155,528,142

Deferred asset

Total deferred assets
Total Assets

79,29762,625

154,849,513

155,528,142

60

Statement of Income(Unit: thousand yen)
13th fiscal period(From August 1, 2021
to January 31, 2022)

14th fiscal period(From February 1, 2022
to July 31, 2022)

Operating revenue
Leasing business revenue
Other leasing business revenue
Gain on sale of real estate properties
Total operating revenue

4,467,642

4,572,823

374,871458,558－

376,999

4,842,514

5,408,382

1,950,819

2,183,993

340,066

420,426

Operating expenses
Expenses related to leasing business
Asset management fees
Asset custody fees
Administrative service fees
Remuneration for directors (and other officers)
Audit fees

6,２２２

7,314

51,897

46,672

3,060

3,060

15,35015,900

Other operating expenses

165,691

181,648

Total operating expenses

2,533,107

2,859,015

2,309,406

2,549,366

Operating income
Non-operating income
Interest income

1223Interest on tax refund

－

100

９４２

1,057

Reversal of distribution payable
Other

1,101

－

Total non-operating income

2,056

1,181

295,013

289,050

Non-operating expenses
Interest expenses

12,10816,548

153,972

91,385

Amortization of investment unit issuance expenses

11,971

11,357

Amortization of investment corporation bond issuance costs

4,736

5,313

Interest expenses on investment corporation bonds
Financing fees

559

44

478,361

413,700

Ordinary income

1,833,101

2,136,847

Income before income taxes

1,833,101

2,136,847

７９１

970

Other
Total non-operating expenses

Income taxes - current
Income taxes – deferred
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss) (-)

８

(８)

８００

961

1,832,301

2,135,885

２９８

120

1,832,599

2,136,006

61

Statement of Cash Flows(Unit: thousand yen)
13th fiscal period(From Aug. 1, 2021
to Jan. 31, 2022)

14th fiscal period(From Feb. 1, 2022
to July 31, 2022)

Cash flows from operating activities

13th fiscal period(From Aug. 1, 2021
to Jan. 31, 2022)

14th fiscal period(From Feb. 1, 2022
to July 31, 2022)

Cash flows from investing activities

1,833,101

2,136,847

Purchase of property, plant andequipment(2,860,065)(627,935)

960,839985,672

Purchase of property, plant andequipment in trust(27,008,275)(3,615,397)

(12)

(23)

Payments of leasehold and guarantee
deposits(３２６)－

307,122305,599

Proceeds from return of leasehold andguarantee deposits

１６９

46

Amortization of investment unit
issuance expenses

11,971

11,357

Refund of leasehold and guarantee
deposits received(10,759)(8,061)

Amortization of investment corporationbond issuance costs

4,７３６

5,313

Proceeds from leasehold and guarantee
deposits received

17,9597,519

Decrease (increase) in operating
accounts receivable

(８５２)

(3)

Refund of leasehold and guarantee
deposits received in trust(49,181)(73,826)(34,367)

34,367

Proceeds from leasehold and guarantee
deposits received in trust

124,629

57,255

Net cash provided by (used in) investing
activities(29,785,849)(4,260,399)

Income before income taxes
Depreciation
Interest income
Interest expenses

Decrease (increase) in consumption
taxes refund receivable
Increase (decrease) in accrued
consumption taxes(81,725)

119,656

Decrease (increase) in prepaid
expenses(36,287)404

Increase (decrease) in operating
accounts payable

140,845(35,628)

Proceeds from long-term borrowings

17,350,000

5,850,000

18,32916,703

Repayments of long-term borrowings(5,350,000)(5,350,000)

Increase (decrease) in advances
received

139,897

15,895

Proceeds from issuance of investment
corporation bonds

1,500,000－

Decrease (increase) in long-term
prepaid expenses(123,056)

27,275

Payments of investment corporationbond issuance costs(18,826)－－

2,447,740

Proceeds from issuance of investment
units

15,979,892－

40,６３７(43,578)

Payments of investment unit issuance
expenses(38,295)－

3,181,180

6,027,600

Distributions paid

(1,746,812)(2,124,715)

1２

23

Net cash provided by (used in) financing
activities

27,675,957(1,624,715)(305,647)(303,658)

Net increase (decrease) in cash and cash
equivalents

764,685(161,942)

Cash and cash equivalents at beginningof period

4,652,791

5,417,477

Cash and cash equivalents at end of
period5,417,477

5,255,534

Increase (decrease) in accounts payable– other

Decrease in property, plant andequipment in trust due to sale
Other, net
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in)operating activities(９６８)
2,874,576(793)
5,723,171

Cash flows from financing activities

62Change in Investment Unit Price
Trading volume(yen)160,000

Second capital increase
through third-party allotment(August 26, 2019)

140,000

120,000

Investment unit price

TSE REIT Index

Third public offering andcapital increase throughthird-party allotment(August 2, 2021)

First capital increase
through third-party allotment(February 1, 2018)(units)
70,00060,000

Listing(June 30, 2015)

50,000100,000
40,000Fourth public offering andcapital increase throughthird-party allotment(August 1, 2022)

80,00060,000First capital increase
through public offering(August 1, 2016)

Second capital increase
through public offering(August 27, 2018)

Third capital increase
through third-party allotment(August 3, 2020)

30,00020,00040,00010,00020,000002015/6/30

2016/6/30
2016/7/31

2017/6/30
2017/7/31

2018/6/30
2018/7/31

2019/6/30
2019/7/31

2020/6/30
2020/7/31

2021/6/30
2021/7/31

2022/6/30
2022/7/31(Date of listing)(Note) “TSE REIT Index” is indexed based on the investment unit price as of the date of listing of Samty Residential Investment Corporation (June 30, 2015).

63

Disclaimer
This document has been prepared to provide information, and not to invite, solicit or recommend trading ofspecific products.

When purchasing investment units of Samty Residential Investment Corporation, please contact respective
securities companies. In such a case, please carefully read the content of the document delivered prior tothe conclusion of contract (or prospectus), etc. Further to the above, we request investors to make final
investment decisions at their own judgment and responsibility.

This document does not constitute a disclosure document or a management report based on the Financial
Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations, the regulationsof the Tokyo Stock Exchange and other relevant laws and regulations.



The data and analysis, etc. contained in this document are based on the actual results of a certain period
in the past and do not guarantee future management results or their fluctuations, etc. Such forwardlooking statements do not constitute a guarantee of future operating results. Furthermore, the investment
return of a real estate investment trust may become lower than the investment principal depending on thefluctuations in the price of the managed real estate properties and their profitability.

Neither Samty Residential Investment Corporation nor Samty Asset Management Co., Ltd. guarantees theaccuracy or completeness of the information provided in this document. In addition, please note that thecontent may be changed or discontinued without notice.

Neither Samty Residential Investment Corporation nor Samty Asset Management Co., Ltd. bears any
responsibility for the outcome of the investment actions taken in accordance with this document.

Duplication and reproduction, etc. of the contents contained in this document without prior consent isprohibited.
Inquiries Regarding This Document

Samty Asset Management Co., Ltd.
(Financial instruments business operator registration
No. 2402 issued by the Director-General of the Kanto
Finance Bureau (Kinsho))(Member of The Investment Trusts Association, Japan)
Phone: 03-5224-5031

64

memo

memo

memo

Universal design fontwhich is easy to readand unlikely to be
misread is adopted