Samty Residential Investment Corporation（Securities CODE：3459）

Financial Results for the 1st Fiscal PeriodEnding January 2016
April 2016

Table of Contents
1. Features of Samty Residential Investment Corporation

P.3

2. Financial Overview

P.7

3. Future Growth Strategy

P.19

4. Operating Results and Distribution Information

P.26

5. Appendix

P.31

2

1. Features of Samty Residential Investment Corporation

Investment Strategy of
Samty Residential Investment (“Samty Residential”)

Samty Residential will invest in high quality residential assets suitable for regional
living conditions, in cities throughout Japan with the sponsor support of the
Samty Group.

① Characteristics of Samty Residential

Samty Residential aims to build a portfolio which pursues stability, growth potential and earnings potential
by “investing primarily in residential properties of major regional cities” as well as “support from the Samty
Group.”

Investing primarily in residential properties of major regional cities
Stability▶ Diversified investing in
carefully screened residential
properties of Japan

Growth▶ Expanding portfolio size
through continual new
investments primarily inmajor regional cities

Earnings Potential▶ Realizing large earnings
anticipated through investingin carefully screened
residential properties ofmajor regional cities

Support from the Samty Group (Note)
Properties development by the Samty Group
Stable supply of the S-RESIDENCE series- Grant of exclusive negotiating rights- Stable supply of newly developed
properties

Listed on the First Section of the Tokyo
Stock Exchange on October 26, 2015

Wide – ranging support of the sponsor- Enhancing value through runninga unified brand(Note) “Samty Group” refers to Samty Co., Ltd., and its consolidated subsidiary companies (Ordinance on Terminology, Forms and Preparation Methods of Consolidated Financial Statements (Ministry of FinanceNo. 28 of 1976. Including subsequent amendments.) Referred to as consolidated subsidiary company as stipulated by Article 2 (iii).) and special purpose companies which Samty Co., Ltd., invests inthemselves, other than the consolidated subsidiary companies of Samty Co., Ltd., while excluding Samty Residential.

4Portfolio Development Policy ofSamty Residential Investment Corporation② Portfolio development Policy
A. Investment policy by asset class Investing in accommodation facilities and otherfacilities, primarily in the residential asset class

Residential
properties(Note1)

Ｂ. Investment policy by geographical area
 Investing primarily in major regional cities
Investment areas

Investment ratio (Note3)

Major regional cities

80% or more

(Sapporo, Sendai, Nagoya, Kyoto, Osaka, Kobe,
Hiroshima and Fukuoka)
50% or more of all investments will be in properties
that are conveniently located near bus terminals or
railway stations linked with other major terminal stations.

20% or less

Focus on the Single andCompact type residences

SapporoRegional cities

Operatingfacilities(Note2)

50%
or moreKobe

Around70%

Sendai

Kyoto

Fukuoka Hiroshima Osaka

NagoyaOther regional cities

Single Type

Floor per unit ofbetween 30m2 and
60m2(Note1) “Residential properties“ represents the rental housing.
(Note2) “Operating facilities” represents the hotels and health care properties.

(Regional cities excluding major regional cities)
20% or less of investments will be in residential
properties that can anticipate rental and income
stability because of their commutable location tocore businesses, medical facilities or national
universities located in the area.

GreaterTokyo area

Compact Type

Floor per unit of lessthan 30m2

Tokyo, Kanagawa, Saitama, Chiba
Around 30% of investments will be in residential
properties primarily located in residential
communities within a 10-minute walk of the nearest
railway station (or bus stop) that is located along aline connected to a terminal station.

20%

or less

Around30%(Note3) “Investment ratio” is calculated based on the acquisition price.
The above is the target investment mix. Actual portfolio composition
may vary

5

Portfolio Overview (as of January 31, 2016)

Samty Residential has acquired 29 residential properties throughout
12 prefectures and has successfully composed a stable diversified
portfolio concentrating in major regional cities.
Asset size
Portfolio map
Investment ratio by geographical area(based on acquisition price)
Major
regional
citiesGreaterTokyo area
24.5%

A-12
A-11
A-16

66.6%

No. of properties

29

Occupancy rate

95.2%

Average building age
Average appraisal
NOI yield
Average actual
NOI yield (Note)

7.6 year
5.6%
5.8%(Note: Average actual NOI yield is the figure of Period Ending
January 2016 (As of January 31, 2016)

Ratio ofregional
cities75.5%

Ratio by building age(based on acquisition price)
15 years to lessthan 20 years
3.0%

Other regional
cities 9.0%
A-15

A-07
C-03
C-05

A-05

30.9
billion yen

A-04

C-06

A-06

A-13 A-01
A-03

B-02

C-09
C-07

Averagebuilding age
7.6 year

5 years toless than
10 years
65.9%

C-08

C-01

B-01

A-14

C-02
C-04

10 years toless than 15
years
8.4%

Less than
5 years
22.7%

A-09
A-02
B-03
B-04

A-03
A-10

Investment ratio by seller(based on acquisition price)
Properties acquired
from sources
unrelated to thesponsorThrough
10.6%
warehousing,

Properties
developedby the sponsor
14.5%

Ratio of average area perresidential unit
(based on acquisition price)
Familytype
8.4%

Ratio ofresidential
properties
100%

15.5%
Through

Properties acquired bridge funds,
through sponsor
20.8%
involvement
74.9%

Owned bythe sponsor,
38.7%

Single type
58.6%

Compact
type
32.9%

6

2. Financial Overview for the 1st Fiscal Period

Financial Overview

Overview of the 1st Fiscal Period Ended January 2016
and Comparison to Beginning of Period Forecast(million yen)Management Status Forecast
A. At IPO

B. At Interim

C. 1st Period( As of July

( As of October

Results

10, 2015 )14, 2015 )Real estate

Change from Change from
Forecast at

Forecast at

IPO

Interim

1,363

1,390

1,458

+7.0%

+4.9%

560

582

628

+12.2%

+8.0%

802

807

829

+3.4%

+2.7%

600

602

598

▲0.6%

▲0.7%

▲491

▲482

▲428

▲13.0%▲11.2%

Ordinary income

108

119

170

+56.8%+42.3%

Corporate tax, etc.

-

0

1

-

-

108

119

168

+55.3%+41.6%

rental revenue
Real estate
rental expenses
Real estate
rental income
Operating income
Non-operating
income and expense

Net income(yen)
Forecast at IPO
Distributions(Note)( As of July
10, 2015 )平成27年7⽉10⽇
開⽰時点

Distribution per unit

Distribution in excess ofearnings per unit
Total distribution per unit

Forecast at
Interim

1st Period( As of October

Results

平成27年10⽉14⽇14, 2015 )
開⽰時点

666

730

1,034

778

782

776

1,444

1,512

1,810

(Note) Calculated with number of investment units issued and outstanding at 163,340 units

Major factors contributing to difference between
forecast at IPO (as of July 10, 2015) and actual
results (1st Fiscal Period ending January 2016)▶ Increase in operating revenue: +¥84 million- Increased rental revenues due to increase inoccupancy and rent: +¥42 million- Increase due to repayments from backing awayfrom deposits: +¥42 million▶ Increase in operating expenses: -¥60 million- Increase in repair and restoration expenses:-¥25 million- Increase in leasing and other expenses:-¥34 million▶ Decrease in depreciation: +¥2 million▶ Increase in sales management expenses:-¥29 million- Increase in IR related expenses: -¥24 million- Increase in compensation, etc.: -¥4 million▶ Decrease in non-operating expenses: +¥63
million- Decrease in interest expenses: +¥8 million- Decrease in founding, unit issuance costs, etc. :+¥55 million▶ Increase in corporate tax, etc.: -¥1 million(+ indicates an increase, ‐ denotes a decrease)[Average occupancy rate during period]
Forecast at IPO : 92.8%
End of period : 93.8%[Capital expenditures]
Forecast at IPO: ¥33 million
End of period: ¥7 million

8

Financial Overview

Financial Overview for the 1st Fiscal Period.
Comparison between Initial Forecast and Actual Results.
Comparison between IPO and 1st Fiscal Period Results.
Total
distributions¥235 million(¥1,444 per unit)

Operatingrevenue+¥84 million

Operating expenses-¥60 million

Increase inrepairexpenses-¥13 million(-¥82)
Depreciation ofdeposits due tomoving out+¥42 million(+¥261)34Non-operating
expenses+¥63 million

5

Total
distributions¥295 million(¥1,810 per unit)

Corporatetax, etc.
-¥1 million(-¥9)

Increase inrestoration
expenses-¥12 million(-¥74)

Increased
revenues withincrease inoccupancy andrents+¥42 million(+¥257)

1st Period 1Forecast 2(as of July 10, 2015)

Sales management
expenses-¥29 million

Increase inleasing
activity
expenses-¥34 million(-¥210)Decrease indepreciatio
n expenses+¥2 million
(¥14)

6

7

Increase in
IR related
expenses-¥24
million(-¥152)

Increase incompensati
on, etc.
-¥4 million(-¥25)

Decrease ininterest
expenses+¥8 million(+¥52)

8910Decrease infounding,
unit issuancecosts, etc.
+¥55 million(¥336)

11

121st Period
13Results(Note) Rounded down to the nearest million yen

9Financial Overview

Financial Overview of 1st Fiscal Period■ Samty Residential has expanded its asset size through property acquisition and■ Samty Residential afforded to acquire the superior property
portfolio diversification
External
Growth

without conducting a public offering during the 1st period.

Acquired two sponsor developed properties(¥4,490 million(Note)) and 22 (¥23,185 million) sponsor
participated properties.
In addition, acquired “S-FORT Gakuenmae” (¥462 million),
which is a 5-minute direct train ride to Sapporo Station fromits nearest station, Gakuenmae Station, is close to
Hokkaigakuen University and has demand from both workers
and students making it greatly competitive.

At IPO(as of July 1,
2015)

End of 1st Fiscal
Period of fiscal
2016(as of January 31,
2016)

Number of properties

28 properties

29 properties

Acquisition price¥30,500 million¥30,962 million(Note) The figures in parenthesis are based on acquisition price.

■ Santy Residential has improved occupancy rates and raised rental revenue improving tenantsʼsatisfaction and asset value by effective renovations and reinforcing leasing activities.

■ Strengthened competitiveness for owned properties through execution of strategic value added work

Internal
GrowthIntroduced electric (IH)
cookers and free internet
services, and repaired
modular baths, etc.

(Note) Occupancy rates at the time of IPO
and at the end of interim period are thefigure of the acquired assets as well as
assets to be acquired excluding S-FORT
Shonan Hiratsuka, S-FORT Tsurumai
marks, and before acquisition of S-FORT
Gakuenmae.

At IPO(as of June 30, 2015)

End of interim period(as of August 31, 2015)

End of 1st Period(as of January 31, 2016)

92.8％

94.3％

95.2％

Occupancy rate(Note)

1st Fiscal Period

Regional Cities

Greater Tokyo Area

Total

Rent increase ratio at time oftenant replacement

44％(132 properties)

33％(21 properties)

42％(153 properties)■ While advancing investment in Major Regional Cities, Samty Residential has established a strong
relationship with financial institutions in each region, constructing a solid financial standing througha balanced lender formation.
Financial
Strategy

As of January 29, 2016
made early repayment of¥650 million in short-termloans payable.
(Note) Calculated as; interest-bearing debt as ofJanuary 31, 2016 (17,162 million yen / Total assets
as of January 31, 2016 (33,890 million yen).

End of 1st Period

End of 1st Period

Total interest-bearing
liabilities¥17,162 million

Long-term loan
ratio

93.2%

LTV
(based on total assets)(Note)

50.6%

0.9%

Average remaining years tomaturity

Average borrowinginterest rate

3.4 years

10External Growth

Initiatives for External Growth: Acquisition of New Properties(Acquired on October 1, 2015)
A-16 S-FORT Gakuenmae
Property name

S-FORT Gakuenmae

Location

Toyohira-ku, Sapporo

AccessApprox. a 3 minute walk from Gakuenmae
Sta., Sapporo City Subway Toho Line

Number of rentable units 48 units
Construction completed

October, 2006

Acquisition price462 million yen

Appraisal value

476 million yen

Appraised NOI yield

5.8％

SellerAegis GK (Direct deal without paying commission)[Property overview]

S-FORT Gakuenmae

This property, which has single and compact type units, is about a threeminute walk from Gakuenmae Station on the Sapporo City Subway. It takes
about two minutes to reach Toyomizu Susukino Station from Gakuenmae
Station using the subway and about six minutes to Sapporo station, providing
excellent access to the downtown core of Sapporo.
Hokkai-Gakuen University and Hokkai School of Commerce are close to thisproperty, Hokkaido prefectural sports center and Tree planting botanicalgarden Toyohira Midori-no-center are within a 10-minites work. Hospital andstores selling daily essentials are nearby, providing a vibrant living
environment.
With such characteristics, convenience of transportation and living is good andthe property is believed to have a high level of competitiveness in the leasing
market of areas with similar demand and supply situations.

Category

Term
loans

LenderShortterm

2

Sumitomo Mitsui Banking
Corporation
The Bank of Fukuoka

Fixed orBalancefloating interest(million yen)
rate
462

Floating rate

Interest rate

Drawdown date

Repayment date

Base rate+0.4%

2015/10/1

2016/9/30

11External Growth

Changes in the Portfolio
Portfolio highlight
End of interim period(August 31, 2015)

S-FORT Gakuenmae(Acquired on
October 1, 2015)

End of 1st period(January 31, 2016)28 properties

28 properties

1 property

29 properties

30,500 million yen

30,500 million yen

462 million yen

30,962 million yen

92.8％

94.3％
（93.6%）

94.4%

95.2%

2,297 units

2,297 units

48 units

2,345 units

IPO(July 10, 2015)

No. ofproperties
Total acquisition
price
Occupancy
Rate (Note 1)
Number of
rentable units(Note 1) The occupancy rate is the figure as of the end of August 2015 is excludes S-FORT Shonan Hiratsuka and S-FORT Tsurumai marks. The figure in the parenthesis is
the occupancy rate with these two properties included. The occupancy rate at the time of IPO is the figure of the acquired assets and assets to be acquired as of the end ofJune 2015 and excludes the aforementioned two properties. The occupancy rate at the time of after new property acquisition is the figure as of the end of October2015.

Acquired Properties

A-07
S-FORT Tsutsujigaoka
Koen

A-08
S-RESIDENCE Namba
Briller

A-13
S-RESIDENCE Kobe
Isogamidori

A-15
S-FORT Katahira

B-04
S-FORT Suzuka

12Internal GrowthManagement Status(1) Changes in the Occupancy Rates by Area
Occupancy rates are steadily rising. Improved 2.4 percentage point since IPO.
Began managementwith 28 properties
on July 1, 2015

Major regional cities (+2.9%)

Other regional cities (+1.5%)

Greater Tokyo area (+1.0%)

Overall (+2.4%)

The figures in parenthesis are the increase in occupancy rates from IPO as of June 2015.

96.0%

95.6%

95.5%
95.0%

95.0%

94.5%

94.1%

94.0%

93.8%

94.1%

94.3%

94.8%

92.0%

92.5%

94.6%
94.9%

94.2%

93.9%

93.0%

94.6%

94.4%

95.3%

95.2%

94.3%

94.1%

92.8%

93.5%

93.2%

92.8%

92.7%

94.4%

94.5%

92.7%

92.8%

92.4%

91.9%
92.1%

91.0%
Jun.
2015

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2016

*Occupancy rates from June 2015 to August 2015 are figures at the end of each month excluding S-FORT Tsurumai marks, S-FORT Shonan Hiratsuka, which had
just been constructed and S-FORT Gakuenmae, which was acquired on October 1, 2015. The figure for September 2015 includes S-FORT Tsurumai marks and SFORT Shonan Hiratsuka, but excludes S-FORT Gakuenmae which had not been acquired.

13

Internal growthManagement Status(2) Increase or Decrease of Rental Revenue at the Time of Tenant Replacement

Increase or Decrease of
Rental Revenue
at the Time of Tenant Replacement
Increased rental revenue for aroundhalf of tenant replacements

Decrease

Decreased

exceeding 5%:

rents:
101units

Increase exceeding

7%

5%:…

28%

Increased
rents:

Decrease of 5% or
less:
75units

The number of units rental revenue
increased on the occasion of
replacement:
units

153

26units

21%

153units

Tenant42%
replacement:
Increase of 5% or
362 units
less:

110units

Unchanged:

30%

108units
30%

The number of units rental revenue increased
at the time of tenant replacement
for the 1st Fiscal Period
Regional Cities

132 units/299 units

Greater Tokyo Area

21 units/ 63 units

Total

153 units/ 362 units

14

Financial Strategy

Financial Highlight ① (At the end of fiscal period ending January 2016)
Financial Status

Status of Borrowings

Average remaining
borrowing period

3%3%

3.4 year

Average interest
rate

Total assets-based
LTV (Note1)

23%

50.6%

List of Borrowings
Term
loans

Long-term

1-A

Long-term

1-B

Long-term

1-C

Long-term

1-D

Short-term
Totalborrowings

1-E
2

Lenders

Loan syndicate with
Sumitomo Mitsui
Banking Corporation
and The Bank ofFukuoka as arrangers
Sumitomo Mitsui
Banking Corporation
The Bank of Fukuoka

26%

The Bank of Fukuoka: 3.9
The Kagawa Bank: 1.5
The Tokyo Star Bank: 1.0

9%
7%
6%

Regional
banks
52.7％

(Note1) Calculated as; interest-bearing debt as of January 31, 2016
(17,162 million yen / Total assets as of January 31, 2016(33,890 million yen).

Category

Shinsei Bank: 1.0

9%

93.2%

Aozora Bank: 1.5
Resona Bank: 1.2

6%
6%

0.9%

Ratio of long-termborrowings

2% 2%（Billion yen）

SMBC: 4.4

Shinwa Bank: 1.0
Shizuoka Bank: 0.5
Kumamoto Bank: 0.5
The Chiba Bank: 0.3
The Hiroshima Bank: 0.3

Balance(millionyen)

Fixed orfloating
interest rate

Interestrate(Note2)

5,000

Floating rate

Base rate +0.6％

2015/7/1

2018/6/30

5,000

Floating rate

Base rate +0.7％

2015/7/1

2019/6/30

4,000

Floating rate

Base rate +0.8％

2015/7/1

2020/6/30

2,000

Floating rate

Base rate +0.9％

2015/7/1

2021/6/30

700

Floating rate

Base rate +0.4％

2015/7/1

2016/6/30

462

Floating rate

Base rate +0.4%

2015/10/1

2016/9/30

Drawdown Repayment
date
date

17,162(Note2) The base rate to be applied is the one-month Japanese yen TIBOR announced by the Japanese Bankers Association.

15

Financial Strategy

Financial Highlight ② (At the end of fiscal period ending January 2016)
Diversification of Maturity ladder（million yen）
6,000

Average remaining period of borrowings：3.4 year

5,000

4,000

3,000

2,000

Partially repaid by the amount of
650 million yen as an early repayment
on January 29, 2016.

1,000

0

2nd period

3rd period

4th period

5th period

6th period

7th period

8th period

9th period

10th period 11th period 12th period(Jul.2016)(Jan.2017)(Jul.2017)(Jan.2018)(Jul.2018)(Jan.2019)(Jul.2019)(Jan.2020)(Jul.2020)(Jan.2021)(Jul.2021)

16

Appraisal Value Status (Change in Appraisal Value and Cap Rates)①
Summary of Appraisal Value
No. ofproperties
Properties acquired prior to andat IPOAt IPO(as of July 10, 2015)

End of interim period(as of October 14, 2015)

End of period(as of January 31, 2016)

Appraisal
Appraisal
Appraisal
Cap Rate（Note1)
Cap Rate（Note1)
Cap Rate（Note1)
value
value
value
(million yen)（％）(million yen)（％）(million yen)（％）

Major regional cities

15

20,451

5.5

20,8795.4

21,199

5.3

Other regional cities

4

2,861

6.1

2,885

5.9

2,935

5.8

Greater Tokyo area

9

7,624

5.0

7,719

4.9

7,824

4.8

Subtotal
Properties acquired after IPO

28

30,936

5.4

31,483

5.3

31,958

5.2

1

－

－

476（Note2）

5.6

476

5.6

29

30,936

5.4

31,9595.3

32,434

5.2

S-FORT Gakuenmae(Major regional cities)
Total(Note 1) Cap Rate is calculated with the weighted average using the cap rate as per the direct capitalization method of the appraisal reports.
(Note 2) Acquired on October 1, 2015. Appraisal value at time of acquisition on August 21, 2015.

17

Appraisal Value Status (Change in Appraisal Value and Cap Rates)②
Changes in the Appraisal Value and Cap Rates after IPO■ Comparison of appraisal value at IPO
and end of interim period■ Change in Cap Rates
No. of properties

No. of properties
Compared toCompared to
end of interim
IPO
periodUpwardChange in
Unchanged
appraisal value

Downward（million yen）

40,000Major regional cities

20,00010,000

22

0

7

0

0

32,434

7,719

7,824

2,861

2,885

2,935

20,451

21,355At IPOInterim (Note3)
periodImproved
Unchanged
Degraded(Upward ofappraisal value)

Major regional cities

6.5%

31,9597,624

Change in
Cap Rate

Other regional cities

Greater Tokyo area

30,93630,00028Compared toCompared to
end of interim
IPO
period

6.0%

0

0

0

13

28

16

Other regional cities

Greater Tokyo area

6.1%

5.5%

5.5%

21,6755.0%

5.0%

End ofperiod

4.5%
At IPO

5.9%

5.8%

5.4%

5.3%

4.9%

4.8%

Interim (Note3)
periodEnd ofperiod(Note3) Interim period includes S-FORT Gakuenmae acquired on October 1, 2015.

18

3. Future Growth Strategy

Growth Strategies(1) Expand the asset size and enhance the quality of the portfolio through continuous

External growthstrategyacquisitions of the “S-RESIDENCE” properties developed by the sponsor(2) Acquire properties through sponsor support(3) Acquire properties by taking advantage of the proprietary channels of the asset
management company(4) Implement the differentiated portfolio development policy

Internal growthstrategy(1) Enhance the asset value and rate of return through reviewing existing facilities
and other measures(2) Reduce operating costs(3) Stabilize earnings by utilizing sublease agreements(1) Lengthen borrowing periods and reduce cost of debt

Financialstrategy(2) Expand the bank formation(3) Acquire credit ratings in the futureManagement Target（Based on acquisition price）
120
100(Asset size: billion yen)

Target of managed assets: achieving the asset size of
100 billion yen within three years

100+ 0.4 billion yen

80
60
40

30.5

30.9

IPO

1st period

Management Target(Jan.2016)(3 years later)

20
0

20

External growth

Pipeline(Properties of which exclusive negotiating rights were granted and properties undernegotiation for acquisition)
Properties being developed by the sponsor, of with exclusive
negotiating rights were granted
Name (tentative)

Major regional
citiesOther regional
citiesLocation

Higashi Yodogawa-ku,
Osaka

167

Area
Major regional cities*Completed in September 2015
Other regional cities*Completed in September 2015
Major regional cities*Completed in January 2016
Major regional cities*To be completed in February 2016①

S-RESIDENCE Shin Osaka Ekimae②

S-RESIDENCE Esaka

Suita-shi, Osaka

138③

S-RESIDENCE Yodoyabashi

Chuo-ku, Osaka

84④

S-RESIDENCE Kobe Motomachi

Chuo-ku, Kobe

81⑤

S-RESIDENCE MidoribashiSF

Chuo-ku, Osaka

148

Major regional cities⑥

S-RESIDENCE Fukaebashi East

Higashinari-ku, Osaka

144

Major regional cities⑦

S-RESIDENCE Shin Osaka West

Yodogawa-ku, Osaka

224

Major regional cities⑧

S-RESIDENCE Miyakojima

Miyakojima-ku, Osaka

120

Major regional cities⑨

S-RESIDENCE Esaka Tarumicho

Suita-shi, Osaka

75

Other regional cities⑩

S-RESIDENCE Nagoya Chiyoda

Naka-ku, Nagoya

109

Major regional cities⑪

S-RESIDENCE Minami Horie

Nishi-ku, Osaka

154

Major regional cities⑫

S-RESIDENCE Yokosuka Chuo

Yokosuka-shi,
Kanagawa

24⑬

S-RESIDENCE Higashi Ikebukuro

Toshima-ku, Tokyo

40⑭

S-RESIDENCE Ryogoku

Sumida-ku, Tokyo

36⑮

S-RESIDENCE Sakura Josui

Suginami-ku, Tokyo

43

Greater Tokyo area

36

Greater Tokyo area

Kanagawaku,Yokohama
Kawasaki-ku,
Kawasaki⑯

S-RESIDENCE Yokohama⑰

S-RESIDENCE Kawasaki⑱

S-RESIDENCE Shinjuku 5-Chome

Properties owned by third party whichsponsor has concluded sales contract
Area

Numberof units

Location

NumberNumber ofofunits (total)buildings

Nagoya-shi

3

88

Tochigi

152

Prefectures where the 29 owned properties are locatedPrefectures where investments will be made for the first time
(Note) Acquisition of any properties described on this page has not been decided as of the date of this document.

Shinjuku-ku, Tokyo

Greater Tokyo area
*To be completed in February 2016
Greater Tokyo area
*To be completed in February 2016
Greater Tokyo area
*To be completed in February 2016

43

Greater Tokyo area

65

Greater Tokyo area

Properties owned by the sponsor,
being considered for acquisition①

Location

Number ofunits

Nagata-ku, Kobe

168

Area
Major regional cities②

Aoba-ku, Sendai

91

Major regional cities③

Wakabayashi-ku, Sendai

59

Major regional cities④

Nakagyo-ku, Kyoto

47

Major regional cities⑤

Higashiyama-ku, Kyoto

18

Major regional cities⑥

Oita-shi, Oita

92

Other regional cities⑦

Saga-shi, Saga

127

Other regional cities⑧

Saga-shi, Saga

46

Other regional cities⑨

Kumamoto-shi, Kumamoto

91

Other regional cities⑩

Tyuou-ku, Sagamihara

53

Greater Tokyo area

21

Internal Growth

Leasing Activities / Examples at Acquired Assets(1) Renovation Examples

Aiming for asset value improvement through continued planning and execution of renovations

C-02 S-FORT Nihonbashi
HakozakibeforeAfter■ 3 –unit prefabricated bath
Since long-term vacancies stoodout at acquisition, the bathroom
was renovated into two separate
rooms with high functionality.
By providing a more comfortableliving space, occupancy rates
improved and rental revenue
increased.

At property
acquisition(as of July 31,
2015)

84.6%

B-01 S-FORT
Shizuoka Hondori

Rent unit price(including common expenses)

Occupancy Rate

beforeAfter renovations(as of January 31,
2016)

92.3%

After

■ Electric cooker repairs
The occupancy rate was low
at acquisition, but by
replacing the deteriorated
electric cookers with the latest
Occupancy Rate
IH stoves and by advertising
At property
After renovations
such to tenants,
acquisition(as of January 31,
the occupancy rate improved(as of April 30, 2015)2016)
significantly.

85.7%

92.9%

Renovated units

Average rent increase
after renovation

4 units¥8,000A-14 S-FORT Kyoto Nishioji■ Introduced free internet service
The free internet service is one of the
popular features of rental residences and is
expected to lead to improved occupancy
rates in the future. After its introduction,
3 new contracts were signed.

Down time
Beforeintroduction

Afterintroduction

137 days

51 days22

Internal Growth

Leasing Activities / Examples at Acquired Assets(2) Leasing Considering the Property Characteristics

The 2 properties (S-RESIDENCE Namba Briller, S-RESIDENCE Kobe Isogamidori) among the“S-RESIDENCE” series developed by sponsors utilize the design and security-conscious productmarketability in promotional materials and maintain high occupancy rates by taking in many female andcorporate demands.

A-13 S-RESIDENCE Kobe Isogamidori■ Rent revision status(July 2015 through January 2016)
Unchanged
1 unitRent increase or
decrease ratio■ Occupancy rate change(July 2015 through January 2016)
100.0%
99.0%

at time of tenant
replacement for July 2015
through January 2016

96.7%

At S-RESIDENCE Kobe Isogamidori, leasing activities
aiming for an increase in rent unit prices were executedand rents were revised upwards for most units at thetime of tenant replacement.

99.4%

98.0%

98.3%

98.4%

97.0%

Upwardrevision
29 units

98.9%

99.4%

99.1%

97.9%

96.0%

Occupancy rate (%)

95.0%
Jul.2015

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.2016

A-08 S-RESIDENCE Namba Briller

While S-RESIDENCE Namba Briller has many
competing properties in the surrounding area, it has■ Rent revision status(July 2015 through January 2016) not had to decrease rents at the time of tenant
replacements and has maintained a high occupancy
rate of around 98%.
Unchanged
rent ratio

at time of tenant
replacement forJuly 2015 throughJanuary 2016100%

100.0%■ Occupancy rate change(July 2015 through January 2016)

98.0%

98.1%

97.0%

Unchanged 96.0%
95.0%
21 units

100.0%

100.0%

99.0%

98.1%

98.0%
97.4%

96.8%

Occupancy rate (%)
Jul.2015

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.2016

23

Internal Growth

Leasing Activities / Examples at Acquired Assets(3) Successful Examples of Flexible and Strategic Leasing
A-09 S-FORT Tsurumai marks

Achieved 100% occupancy rate through strategic leasing activities focusing on corporate
demands, by cooperating with PM companies at the time of acquisition,
aiming for improved occupancy rates anticipating personnel changes in the fall.
Corporate contracts account for more than half (23 of 42 units contracted), the businesstypes are diverse, making stable occupancy rates possible.
100.0%

100%

100%

95.0%

97.6%

97.6%

97.6%

90.0%
85.0%
80.0%

83.3%

85.7%

Jul.2015

Occupancy rate (%)

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.2016

A-04 S-FORT Chikushi Dori

Before Samty Residential acquired the property the occupancy rate was in the lower
80% range and at the date of acquisition by Samty Residential (as of May 31 2015) it
was 85.6%. However, at the time of the acquisition the PM company was changed andrelations with the leasing agent were strengthened and with strategic leasing activities
such as analysis of the cause of vacant units and value add work (color contrast), theoccupancy rate improved to 97.8% as of January 31, 2016.
100.0%

97.8%

95.0%
90.0%
85.0%

85.6%

87.8%

87.8%

90.1%

92.3%

91.1%

86.7%

Occupancy rate (%)

80.0%
H27年5⽉

6⽉

Jul.2015

Aug.

93.3%

Sep.

Oct.

Nov.

Dec.

Jan.2016

24

Financial strategy

Summary of Financial Strategy
Basic Policy
Equity finance

The issuance of new investment units will be authorized based on the financial environment
and with consideration given to dilution of unitholder value, following a comprehensive reviewof the profitability of the managed asset, timing of the acquisition, LTV level, and repayment
plan for interest-bearing debt, among other factors.

Debt finance

Debt financing through execution of borrowings and issuance of investment corporation bonds(including short-term investment corporation bonds) will be carried out with consideration
given to the balance between financing flexibility and financial stability.

LTV

LTV levels will be determined with close consideration given to financial capacity. While theceiling will be set at 60%, LTV levels will generally be kept between 45% and 55%.

Future Action Plans
Develop new banking relation ship including
regional banks

Diversify the source of financing across Japan
as is in case of geographical diversification ofassetsExtend remaining borrowing period withconsideration given to costs

Diversify repayment dates

Acquire credit ratings in the future25

4. Operating Results and Distribution Information

Management Forecast of the 2nd Fiscal Period(million yen)

2 n d fisc al pe r i o dReal estate rental revenue

1,085

Miscellaneous rental expenses

167

Taxes and dues

71

Depreciation

268

Real estate rental expenses

507

Real estate rental income

577

Asset managemant fees76

Other expenses

78

Operating income

423

Non-operating income and expense-93

Ordinary income

330

Corporate tax, etc.

1

Net income

Distribution in excess of earnings per unit
Total distribution per unit

■ Calculation period ：From February 1, 2016 to July 31, 2016
■ Managed assets
2９ properties(Number of acquired properties as of thedate of this document)■ Period-average month-end occupancy rate
94.6%
■ Interest-bearing liabilities
17,162 million yen

329

(yen)
Distribution per unit

Assumptions

2,017
574
2,591

■ No. of investment units issued and outstanding
163,340 units■ Capital expenditures (planned amount)
28 million yen

27

Distribution Policy Due to of the nature of the portfolio, the ratio of depreciation to property acquisition price tends to belarge, Samty Residential aims to increase fund efficiency through optimal fund allocation andimprovement of unitholder value over the medium to long term.
 In regards to the 2nd Fiscal Period, Samty Residential determined that it is appropriate to conduct
distributions in excess of earnings in consideration of the market environment and financial conditions.
 Amount of distribution amount are determined based on the target payout ratio aiming for 70%.

Cash Management Strategy
Based on the characteristics of the portfolio, Samty Residential will optimally distribute free cash flow after
allocating funds to reserves for capital expenditures to maintain the building functions, etc., working capitaland such, in accordance with the situations of the time.

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

Capital expenditures to maintain thebuilding functions, etc.

Securement of working
capital on hand, etc.

Optimally allocate the free cash to each measure listed below after the fund allocation
mentioned above
Return to unitholders including
distribution in excess of earnings
Reinforcement of the financial base by
reducing interest-bearing liabilities, etc.

Investment that should help enhance
the portfolioʼs profitability28

Distribution Policy
Distributions in Excess of Earnings
Samty Residential determines the distribution amount of each period based on the payout ratio, as distributionof operation outcome.
However, when deciding distribution in excess of earnings, the following requirements are to be fulfilled, taking
into account Samty Residentialʼs financial conditions, amount of future capital expenditures, etc., in order toavoid undermining the unitholder value.
■ Conceptual diagram of distribution in excess of earnings(1) Determine of distribution

Total
appraisalvalueWith a view to enhancing unitholder value over the
medium to long term, distributions in excess of earnings
are authorized when Samty Residentialʼs portfolio meetsthe following conditions.

Expensed related
to rent business,sales, generalandadministrative
expenses, nonoperating
expenses, etc.

RentalrevenueCAPEX for thefollowing fiscal
periodTotal adjusted
book value(Note)

Note: Excluding amount equivalent to incidental
expenses upon acquisition(2) Determination of amountAmount of distributions are determined for each fiscal period based on future
capital expenditures, capital demand, etc.

Payout ratio = Total distribution amount(including distribution in excess of earnings)/(Net income + Depreciation)
Depreciation
Distribution inexcess of earnings

Net income
before income
taxes

Distribution(profits)

Distribute payout ratio
aiming for 70%
However, distribution inexcess of earnings will be
up to 35% of depreciation

29

Cash distribution forecast：

Outlook of Funds From Operations and Cash Flow
Outlook of Cash Flow
■ 2nd fiscal period（million yen）
700

Payout ratio
70.8％

600

28

569

147

500
400

Distributions
in excess of earnings
93

Depreciation
268

300
200

Net income
329

Distributions(profits)
329

100
0
FFO

CAPEX

AFFO

分配⾦
Total
cash
distribution
総額

活⽤可能
Cash
available
for
use
な現⾦

*FFO=Net income + Depreciation – Gain or loss on sale of real estate
AFFO= FFO－CAPEX

30

5. Appendix

Characteristics of Regional Residence Investments
Growth rate

2000 toHousehold growth rate (2000 = 100) from2014
（％）

130

+25.9%
Fukuoka City

125

Sapporo City

+19.8%

Tokyo 23 Wards+18.2%

120

Sendai City

+17.8%

Major Regional Cities+16.7%

115
110
105
100

+22.5%

2002

2004

2006

2008

2010

2012

Tokyo 23 Wards

160
140
120
100
80

+15.6%

40

Kobe City+14.9%

20

Hiroshima City

+12.5%Net Migration
Major Regional Cities

80,000

60

0
平成12
平成14
平成16
平成18
平成20
平成22
平成24
平成26
2000
2012
2002
2004
2006
2008
2016
2010
Source: Prepared by Samty Asset Management based on “Housing Starts Statistics (yearly),”(house for rent/reinforced concrete structure, steel framed reinforced concrete structure/residential
complex)
Ministry of Land, Infrastructure, Transportation and Tourism, Information Policy Division,
Construction Research and Statistics Office

Status of Investment into Residences by
Listed J-REITs
Others:364
25%

70,000

主要地⽅都市合計
Major Regional Cities

180

Osaka City

2014

Tokyo
23 Wards
東京23区

200

+16.1%

Source: Prepared by Sumitomo Mitsui Trust Research Institute based on “Basic
Resident Registers,” Ministry of Internal Affairs and Communications（ people ）（%）

Nagoya City

Kyoto City
2000

Number of New Housing Starts(Year 2000＝100）(number of buildings)

60,00050,00040,000Aichi
Prefecture:89
6%30,00020,000

Osaka:
95
7%

10,00002000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

Source: Prepared by Sumitomo Mitsui Trust Research Institute based on “Basic
Resident Registers,” Ministry of Internal Affairs and Communications

Tokyo:
907
62%

Source: Prepared by Samty Asset Management based on ARES J-REIT Property Database(Note) Total of each listed J-REITʼs owned residences (1,455 buildings) at end of the mostrecent fiscal period as of February 23, 2016. Further, for Nomura Real Estate Master Fund.
Inc., which merged on October 1, 2015, the owned residences at the end of the mostrecent fiscal period for the pre-merger Nomura Real Estate Residential Fund, Inc.

32

Overview of the Samty Group
Property Leasing

History
Dec.
1982

Sep.
2002

Samty Development Co., Ltd.
(currently Samty Co., Ltd.)established at Nakajima 1-chome,
Higashi-Yodogawa Ward, Osaka
City
Launched the real estate
securitization business andconducted real estate securitizationthat was the first such operation
approved by the Kinki Local
Finance Bureau

Jun.
2012
Nov.
2012
May
2015

Mar.
2005

Launched the S-Residence seriesof rental condominiums for realestate funds and REITs

Oct.
2015
Mar.
2016

Jul.
2007

Shares listed on the Osaka
Securities Exchange's Hercules
market (currently the Tokyo Stock
Exchange's JASDAQ Standard).

Feb.
2011
Dec.
2011

Established Fukuoka Branch OfficeAcquired shares in Samty AssetManagement Co., Ltd. to make ita wholly-owned subsidiary The Samty Group owns condominiums, office buildings, retail properties, hotels and parking lots either
for the entire buildings or in sectional ownership, and leases them to individuals and corporate tenants.
 The Group continuously acquires income-generating real estate properties in major regional cities
throughout Japan, centering on the Kansai area where the Groupʼs headquarters exist.
 The in-house design and leasing divisions have qualified architects of the first class, who study andimplement lease-up plans and measures to enhance asset value. The Group also conducts subleasing
and consigned operations of building management, etc. As such, the group has accumulated a wide
range of know-how and experiences.

Established Sapporo Branch Office
Moved up to the First Section of
the Tokyo Stock Exchange.

Composition of Lease Assets of
the Samty Group(million yen)

Established Nagoya Branch OfficeDistribution of Lease Assetsof the Samty GroupBook value : as of November 30, 2015

Leased area : as of November 30, 2015

Tohoku,(14%)

4,017㎡,(1%)
Kanto,

699㎡,

32,189㎡,

(0%)

(8%)
Chubu,

Established Samty Kanri Co., Ltd.
that is engaged in real estate
management business

17,938㎡,

Retail facilities/ hotels, etc.
39%

Changes in the Operating Results of the Samty Group(Consolidated Basis)
Net sales : Total (left axis)
Net sales : Property Leasing (left axis)
Operating income (right axis)(million yen)

52,780㎡,

Shikoku,

Established Tokyo Branch Office

45,000

Hokkaido, 12,156㎡, (3%)

Kyusyu,Office buildings
10,653 15%

Net sales : Other Businesses (left axis)
Net salse : Real Estate Business (left axis)(million yen)

9,000

40,00035,0007,500

30,0006,000

25,000Real Estate Business

20,00015,0003,000

10,000
1,500

5,000

KinKi,(5%)

271,305㎡,(69%)

Solution Business

The Samty Group sells real estate properties it develops on its own and existing income-generating realestate properties, etc. that it acquires from third parties to external investors and other buyers. A
representative product of the real estate properties it develops is the S-RESIDENCE series rental
condominiums, prefixed with its own brand, for which the Group operates consistently from acquiring land
for the project to planning and developing the product and constructing it. For the income-generating realestate properties it has developed or acquired, the Samty Group not only invites tenants but also works toenhance the grades of the properties through facility renovations by utilizing its know-how, in an endeavor
to secure earnings during the period it owns them and maximize their sale value. Since 2004, the Group has
sold 28 buildings (totaling 45.5 billion yen on a sale price basis), of which 6 buildings (totaling 13.8 billion
yen on a sale price basis) are owned by listed J-REITs as of the date of this document.
（million yen）

14,0004,500

Condominiums
33,578 46%

Development Results and Development Plan of the S-RESIDENCE Series

12,00010,000
8,000
6,000
4,000

0

0
Nov.

Nov.

Nov.

Nov.

Nov.

Nov.

Nov.

Nov.

2008

2009

2010

2011

2012

2013

2014

2015

2,000
0

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

(results) (results) (results) (results) (results) (results) (results) (results) (results) (results) (results) (planned) (planned) (planned)

Source: Securities Reports (from the fiscal year ended November 2008 to the fiscal year ended November 2015)
of Samty Co., Ltd.
(Note) The Net sales figure as of November 2008 shows the total of all the sales due to the change insegmentation method.

Source: Presentation on Operating Results for Fiscal Year Ending November 2015 by Samty Co., Ltd.
(Note 1) Development results represent a compilation of the sale amounts of rental condominiums developed for listed J-REITs and investment funds.
(Note 2) Development plans represent a compilation of the assumed sale amounts of properties for which the Samty Group has concluded agreements
regarding acquisition of the land for the projects. The figures are as of the end of November 2015, and may be changed in accordance with an increaseor a decrease in the number of future agreements on acquiring land and changes in the assumed sale amounts.

33

Condominium Brand “S-RESIDENCE” in Samty Residentialʼs Portfolio
S-RESIDENCE Brand

Washstand with modern taste

Double lock with dimple key
for high security

 “S-RESIDENCE” is a high quality, rental condominium brand developed by
Samty Group since 2005.
 “S-RESIDENCE” is a brand characterized by the opulent utilization offieldstones, entrances with open spaces, luxury hotel-like indirect lighting andcorridors, high quality plumbing which display a luxuriousness, etc., possesshigh quality designs which appeal mainly to students, workers, etc., andparticularly the high relative ratio of female tenants.

S-RESIDENCE
Kobe Isogamidori

Convenient large
Closets aroundthe entrance hallHotel-like indoor hallway
protecting privacy

Bathroom heater/dryer/
Hands-free
ventilation systemintercomassuring comfort whenwith a monitor
taking a bath in winteror drying clothes on rainy days

Safe flat flooringby eliminating difference inlevel on the floor to prevent
trips

Well-poised entrance hall
Flat-designed floorsthat serves as a gatewayfrom ordinary to private space

Self-locking system that securesdaily peace of mind and safety
Security cameras that are effective
for preventing vandalism andcrimes are installed in the building
and elevators
Convenient home-delivery box forreceiving parcels around-the-clock
Toilet with variety of functions
such as self-cleaning and heater

Imageillustration

Cushioned flooring withexcellent sound-absorption

34

Portfolio List ① Major Regional Cities
List of acquired properties (Number of acquired properties as of January 31, 2016)
Property
No.

Property nameLocation

type

Acquisition Price(millions of yen)Appraisal Valueat End of Period(millions of yen)

appraisal NOI
yield

Number of
rentableunits

Occupancy
Rate

Major regional cities
A-01

S-FORT

Yodogawa-ku,

Shin Osaka ravir

Osaka
Nakagawa-ku,

A-02

S-FORT Sanno

A-03

S-FORT Fujigaoka

A-04
A-05
A-06
A-07
A-08
A-09
A-10
A-11
A-12
A-13
A-14

NagoyaMeitou-ku,

S-FORT

NagoyaHakata-ku,

Chikushi DoriS-FORT Fukuoka

Fukuoka
Hakata-ku,

Kencho Mae

FukuokaMinami-ku,

S-FORT Takamiya
S-FORT

FukuokaMiyagino-ku,

Tsutsujigaoka Koen
S-RESIDENCE

Sendai
Naniwa-ku,

Namba Briller
S-FORT
Tsurumai marks
S-FORT

Osaka
Naka-ku, Naoya
Atsuta-ku,

Rokuban-cho
S-FORT

NagoyaChuo-ku,

Nakajima Koen
S-FORT

SapporoKita-ku,

Hokudai Mae
S-RESIDENCE

SapporoKobe Isogamidori
S-FORT
Kyoto Nishioji

A-15

S-FORT Katahira

A-16

S-FORT Gakuenmae

Chuo-ku, Kobe
Shimogyo-ku,
Kyoto
Aoba-ku,
SendaiToyohira-ku,
SapporoSingle / Compact

635

646

5.3%

49

87.8%

Single / Compact

2,890

3,060

6.1%

230

97.5%

Single

750

784

6.0%

80

93.8%

Compact

1,170

1,190

5.6%

90

97.8%

Single

979

1,060

5.9%

104

99.0%

Single / Commercial

794

807

5.6%

82

95.3%

Single / Compact / Family

1,340

1,370

5.7%

94

92.4%

Single

2,020

2,100

5.3%

154

100.0%

Family

1,020

1,160

5.8%

42

100.0%

Single / Commercial

722

746

5.4%

56

96.6%

Compact / Family

1,590

1,620

5.7%

75

90.3%

Compact / Commercial

690

732

5.8%

59

94.7%

Single / Compact

2,470

2,600

5.3%

166

99.1%

Single / Commercial

745

804

6.0%

71

90.2%

Single / Compact

2,330

2,520

6.0%

191

95.9%

Single / Compact

462

476

5.9%

48

87.2%

35

Portfolio List ② Other Regional Cities / Greater Tokyo Area
List of acquired properties (Number of acquired properties as of January 31, 2016)
Property
No.

Property nameLocation

type

Acquisition Price(millions of yen)Appraisal Valueat End of Period(millions of yen)

appraisal NOI
yield

Number of
rentableunits

Occupancy
Rate

Other regional cities
B-01
B-02
B-03
B-04

S-FORT Shizuoka
Hondori
S-FORT Suminodo
S-FORT
Yokkaichi otomachi
S-FORT Suzuka

Aoi-ku,Shizuoka
Daitou-shi,
Osaka
Yokkaichi-shi,
MieSuzuka-shi, Mie

Compact

297

305

6.1%

28

92.9%

Single / Compact

1,420

1,500

6.0%

126

95.9%

Compact

480

511

6.7%

54

100.0%

Compact

580

619

7.0%

69

92.0%

Single / Compact

987

1,020

5.3%

70

91.7%

Single / Compact

925

946

4.6%

36

92.3%

Compact

645

660

4.8%

32

90.9%

Single

866

952

5.1%

52

98.1%

Single

666

675

4.8%

40

95.0%

Single

818

841

5.4%

66

87.6%

Single / Compact

732

744

5.3%

47

100.0%

Single

1,130

1,150

5.3%

83

98.8%

Single / Commercial

809

836

5.2%

51

87.3%

30,96232,434

5.6%

2,345

95.2%

Greater Tokyo area
C-01
C-02
C-03

S-FORT Maita Koen
S-FORT Nihonbashi
Hakozaki
S-FORT

Minami-ku,
Yokohama
Chuo-ku, Tokyo
Itabashi-ku,

Itabashi Shimura

Tokyo

C-04

S-FORT Shiomi

Koto-ku, Tokyo

C-05

S-FORT Noborito

C-06
C-07

S-FORT

Kawasaki
Hiratsuka-shi,

Shonan Hiratsuka
S-FORT

Kanagawa
Funabashi-shi,

Nishifunabashi

Chiba
Urayasu-shi,

C-08

S-FORT Maihama

C-09

S-FORT Ichikawa

Total

Tama-ku,

29 properties

Chiba
Ichikawa-shi,
Chiba

36

Income and Expenditure by Property (1)Fiscal Period Ending January 2016 (As of January 31, 2016)
Area category

Major regional cities

Property No.

A-01
S-FORT Shin

Property nameinformation

Leasing

A-03

S-FORT Sanno

Osaka ravir

Acquisition date
Price

A-02

Apr. 15, 2015

Apr. 15, 2015

A-04

A-05

A-06

S-FORT

S-FORT

S-FORT

Fujigaoka

Chikushi Dori

Apr. 15, 2015

May 1, 2015

A-07

S-FORT

Fukuoka
Apr. 15, 2015

S-RESIDENCE

Tsutsujigaoka

Takamiya

Kencho Mae

A-08

S-FORT

Namba Briller

Koen

May 1, 2015

Apr. 15, 2015

Jul. 1, 2015

Acquisition price (million yen)

635

2,890

750

1,170

979

794

1,340

Composition ratio

2.1%

9.3%

2.4%

3.8%

3.2%

2.6%

4.3%

6.5%

Balance sheet amount (million yen)

661

3,036

787

1,223

1,032

833

1,419

2,122

Total leasable area (㎡)1,290.84

8,138.40

1,960.00

3,706.56

2,566.72

2,105.13

3,609.49

3,631.60

Leased area (㎡)1,133.58

7,938.27

1,837.50

3,623.36

2,542.04

2,005.77

3,334.25

3,631.60

87.8%

97.5%

93.8%

97.8%

99.0%

95.3%

92.4%

100.0%

292days292days292days276days292days276days292days215days

31,246

204,723

46,21964,79754,74440,87878,61879,174

Real estate rental revenues

29,513

163,508

42,17053,676

52,11338,65170,062

74,242Other lease business revenues

1,732

41,214

4,048

11,120

2,630

2,227

8,555

4,931

8,053

27,908

8,542

17,763

7,380

8,532

14,262

11,964

1,815

8,770

2,070

2,397

2,576

2,081

3,174

3,030

-

-

-

-

-

-

-

-

501

1,789

875

958

704

720

2,454

801

2,218

5,928

2,319

6,715

1,462

2,772

3,830

877

57

309

79

146

107

94

143

122

480

480

480

453

480

453

480

472

information Occupancy rate
(as of Jan. 31, 2016)
Number of operating days
① Total real estate rental income(thousand yen)

② Real estate rental expenses(thousand yen)Management service fee
IncomeTaxes and duesandUtilities expenses

expenses

Repair Cost

information Insurance expenses
Trust fees

2,020

Other

2,978

10,629

2,716

7,091

2,048

2,409

4,178

6,660

③ NOI (= ①－②) (thousand yen)

23,193

176,814

37,67647,03447,36332,34664,355

67,209④ Depreciation (thousand yen)

8,865

42,044

16,137

16,021

14,36913,072

19,392

15,997

14,327

134,770

21,53931,01332,994

19,27444,962

51,212

-

-

-

-

-

-

-

-

23,193

176,814

37,67647,03447,36332,34664,355

67,209⑤ Real estate rental income(= ③－④) (thousand yen)
⑥ Capital Expenditures(thousand yen)
⑦ NCF (= ③－⑥) (thousand yen)37

Income and Expenditure by Property (2)Fiscal Period Ending January 2016 (As of January 31, 2016)
Area category

Major regional cities

Property No.

A-09

A-10

S-FORT
Property name

TsurumaiAcquisition dateJul. 1, 2015

marks

Price
information

Leasing

A-11

A-12

A-13
S-RESIDENCE

S-FORT

S-FORT

S-FORT

Rokuban-cho

Nakajima Koen

Hokudai Mae

Jul. 1, 2015

Jul. 1, 2015

Jul. 1, 2015

Kobe
Isogamidori
Jul. 1, 2015

A-14

A-15

S-FORT Kyoto

S-FORT

S-FORT

Nishioji

Katahira

Gakuenmae

Jul. 1, 2015

Oct. 1, 2015

Jul. 1, 2015

A-16

Acquisition price (million yen)

1,020

722

1,590

690

2,470

745

2,330

462

Composition ratio

3.3%

2.3%

5.1%

2.2%

8.0%

2.4%

7.5%

1.5%

Balance sheet amount (million yen)

1,109

757

1,677

737

2,598

791

2,442

496

Total leasable area (㎡)2,772.00

1,833.29

5,292.65

2,287.22

4,372.45

1,657.31

5,483.22

1,757.28

Leased area (㎡)2,772.00

1,771.43

4,779.16

2,165.69

4,331.41

1,494.40

5,256.28

1,532.83

100.0%

96.6%

90.3%

94.7%

99.1%

90.2%

95.9%

87.2%

215days215days215days215days215days215days215days123days

41,031

27,396

71,77829,64699,00528,98897,31811,080Real estate rental revenues

37,30725,27563,00327,02790,82325,983

91,943

9,538

Other lease business revenues

3,723

2,121

8,775

2,618

8,182

3,005

5,374

1,541

7,732

5,111

12,507

5,518

10,821

9,167

13,074

1,993

1,904

1,491

3,106

1,165

3,149

1,703

4,525

538

-

-

-

-

-

-

-

-

information Occupancy rate
(as of Jan. 31, 2016)
Number of operating days
① Total real estate rental income(thousand yen)

② Real estate rental expenses(thousand yen)Management service fee
IncomeTaxes and duesandUtilities expenses

300

267

1,567

461

568

996

947

120

expenses

Repair Cost

54

1,336

3,499

691

1,888

2,428

5,300

352

65

45

142

62

137

53

171

21

354

354

472

354

472

454

354

188

information Insurance expenses
Trust fees
Other

5,054

1,616

3,719

2,783

4,604

3,531

1,775

771

③ NOI (= ①－②) (thousand yen)

33,29822,28559,27024,12888,184

19,82084,2439,086④ Depreciation (thousand yen)

10,903

8,659

15,377

6,144

21,2629,140

32,4293,069

22,394

13,62543,893

17,983

66,922

10,68051,814

6,017

235

172

524

-

-

141

165

213

33,062

22,11258,74524,12888,184

19,67984,078

8,872⑤ Real estate rental income(= ③－④) (thousand yen)
⑥ Capital Expenditures(thousand yen)
⑦ NCF (= ③－⑥) (thousand yen)38

Income and Expenditure by Property (3)Fiscal Period Ending January 2016 (As of January 31, 2016)
Area category

Other regional cities

Property No.

B-01

B-02

S-FORT
Property nameAcquisition date
Price
information

Leasing

Yokkaichi

Suminodo

Hondori
Apr. 15, 2015

B-04

S-FORT

S-FORT

Shizuoka

Greater Tokyo area

B-03

Motomachi

Apr. 15, 2015

Jul. 1, 2015

C-01

S-FORT

S-FORT Maita

SuzukaKoen

Jul. 1, 2015

Apr. 15, 2015

C-02

C-03

S-FORT

S-FORT

Nihonbashi

Itabashi

Hakozaki

ShimuraJul. 1, 2015

C-04
S-FORT ShiomiJul. 1, 2015

Jul. 1, 2015

Acquisition price (million yen)

297

1,420

480

580

987

925

645

866

Composition ratio

1.0%

4.6%

1.6%

1.9%

3.2%

3.0%

2.1%

2.8%

Balance sheet amount (million yen)

313

1,486

527

633

1,026

964

670

907

Total leasable area (㎡)911.403,332.16

1,691.28

2,286.69

1,609.80

1,114.38

1,119.54

1,042.48

Leased area (㎡)846.303,193.97

1,691.28

2,103.99

1,476.25

1,028.47

1,017.17

1,022.47

92.9%

95.9%

100.0%

92.0%

91.7%

92.3%

90.9%

98.1%

292days292days215days215days292days215days215days215days

17,21786,64625,17931,65450,222

29,182

23,27933,327

Real estate rental revenues

16,15574,29922,00925,14346,81625,487

20,15030,806

Other lease business revenues

1,062

12,347

3,170

6,511

3,406

3,694

3,129

2,521

6,406

13,390

4,934

5,041

9,917

9,710

7,160

5,233

1,922

2,837

1,643

1,850

4,230

1,854

1,262

2,102

-

-

-

-

-

-

-

-

233

3,509

789

1,156

875

545

348

673

2,041

2,358

613

655

2,541

4,348

2,876

1,169

43

152

44

63

92

42

38

46

479

480

354

354

479

472

472

472

information Occupancy rate
(as of Jan. 31, 2016)
Number of operating days
① Total real estate rental income(thousand yen)

② Real estate rental expenses(thousand yen)Management service fee
IncomeTaxes and duesandUtilities expenses

expenses

Repair Cost

information Insurance expenses
Trust fees
Other

1,685

4,051

1,489

961

1,698

2,448

2,162

768

③ NOI (= ①－②) (thousand yen)

10,811

73,256

20,244

26,61340,305

19,471

16,11928,094④ Depreciation (thousand yen)

4,892

23,571

7,222

8,460

16,033

5,529

4,785

7,011

5,919

49,684

13,022

18,152

24,271

13,942

11,33321,083

-

-

235

141

129

6,082

-

-

10,811

73,25620,00826,47140,175

13,38916,11928,094⑤ Real estate rental income(= ③－④) (thousand yen)
⑥ Capital Expenditures(thousand yen)
⑦ NCF (= ③－⑥) (thousand yen)

39

Income and Expenditure by Property ( 4)
Fiscal Period Ending January 2016 (As of January 31, 2016)
Area category

Greater Tokyo area

Property No.

C-05

information

Hiratsuka

Jul. 1, 2015

Jul. 1, 2015

Total
C-08

C-09

29 Properties

S-FORT

S-FORT

S-FORT

Nishifunabashi

MaihamaIchikawa

Jul. 1, 2015

Jul. 1, 2015

Jul. 1, 2015

Acquisition price (million yen)

666

818

732

1,130

809

Composition ratio

2.2%

2.6%

2.4%

3.6%

2.6%

Balance sheet amount (million yen)

30,962

694

883

763

1,172

835

32,607

1,022.10

1,717.46

1,397.64

1,726.56

1,255.90

72,691.55

971.391,504.72

1,397.64

1,705.68

1,096.86

69,205.76

95.0%

87.6%

100.0%

98.8%

87.3%

95.2%

215days215days215days215days215days

22,55530,64327,64343,31731,0591,458,576

Real estate rental revenues

21,34429,27725,14238,82929,6291,299,936

Other lease business revenues

1,210

1,365

2,501

4,487

1,429

158,639

4,843

6,827

7,585

7,275

7,584

266,244

1,233

1,692

1,648

1,860

2,703

70,345

-

-

-

-

-

-

Total leasable area (㎡)Leasing

ShonanNoborito

Acquisition date

C-07

S-FORT

S-FORT

Property name

Price

C-06

Leased area (㎡)information Occupancy rate
(as of Jan. 31, 2016)
Number of operating days
① Total real estate rental income(thousand yen)

② Real estate rental expenses(thousand yen)Management service fee
IncomeTaxes and duesandUtilities expenses

241

232

444

912

743

24,742

expenses

Repair Cost

623

326

1,529

1,793

1,640

64,195

37

50

40

52

46

2,512

472

472

472

472

472

12,710information Insurance expenses
Trust fees
Other

2,234

4,054

3,450

2,183

1,977

91,738③ NOI (= ①－②) (thousand yen)

17,712

23,81520,05836,041

23,474

1,192,331④ Depreciation (thousand yen)

6,194

7,475

7,104

7,855

3,548

362,572

11,517

16,34012,95328,18519,925

829,758

107

-

240

-

-

8,390

17,60523,815

19,81836,041

23,474

1,183,940⑤ Real estate rental income(= ③－④) (thousand yen)
⑥ Capital Expenditures(thousand yen)
⑦ NCF (= ③－⑥) (thousand yen)40

Financial Documents: Balance Sheet(Unit: thousand yen)

(Unit: thousand yen)

Current Fiscal Year

Current Fiscal Year

（January 31, 2016）
Assets（January 31, 2016）
Liabilities

Current assets

Current liabilities

Cash and deposits

276,619

Operating accounts payable

Cash and deposits in trust

705,877

Short-term loans payable

1,162,000

Operating accounts receivable

4,243

Accounts payable – other161,846

Prepaid expenses

42,931

Accrued expenses

Consumption tax receivable

144,140

Income taxes payable

deferred income tax asset
Total current assets

143,550

1,173,839

Deposits received

12,870Total current liabilities
20,131,994

Long-term loans payable△351,345

Tenant leasehold and security deposits in trust

Buildings in trust, net

19,780,648

Total non-current liabilities

Machinery and equipment in trust

358,415

Accumulated depreciation△10,831

Machinery and equipment in trust, net

347,584

Total Liabilities

Unitholdersʼ capital

Accumulated depreciation△396

Surplus

2,498
12,477,166

Total property, plant and equipment

32,607,898
10,284Long-term prepaid expenses

98,327

Total investments and other assets

108,611

Total non-current assets

17,706,332

16,015,052

Unappropriated retained earnings

168,963

Total surplus

168,963

Total unitholdersʼ equity
Total net assets

Investments and other assets

150,602
16,150,602

Unitholdersʼ equity

2,894

Land in trust

16,000,000

Net assets

Tools, furniture and fixtures in trust

Total assets

1,555,730

Non-current liabilities

Accumulated depreciation

Lease and guarantee deposits

1,581

Advances received

Property, plant and equipment

Tools, furniture and fixtures in trust, net

1,166

27

Non-current assets
Buildings in trust

72,714

Total liabilities and net assets

16,184,016
16,184,016
33,890,349

32,716,510
33,890,349

41

Financial Documents: Statement of Income(Unit: thousand yen)
Current Fiscal Year
From: March 16, 2015
To: January 31, 2016
Operating revenue
Rent revenue - real estate
Other lease business revenues
Total operating revenue

1,299,936
158,639
1,458,576

Operating expenses
Expenses related to rent business

628,836

Asset management fee

91,851

Asset custody fee

5,015

Administrative service fees

28,454

Directorsʼ compensations

4,400

Other operating expenses

101,288

Total operating expenses

859,846

Operating income

598,729

Non-operating income
Interest income

71

Total non-operating income

71

Non-operating expenses
Interest expenses

120,663

Borrowing related expenses

180,020

Deferred organization expenses

70,000Investment unit issuance costs

57,584

Total non-operating expenses

428,268

Ordinary income

170,532

Net income before income taxes

170,532

Income taxes – current

1,596

Income taxes – deferred△27

Total income taxes

1,569

Net income

168,963

Unappropriated retained earnings

168,96342

Financial Documents: Statements of Cash Flows(Unit: thousand yen)

(Unit: thousand yen)

Current Fiscal Year

Current Fiscal Year

From: March 16, 2015

From: March 16, 2015

To: January 31, 2016

To: January 31, 2016

Cash flows from operating activities

Cash flows from financing activities

Net income before income taxes

170,532

Proceeds from short-term loans payable

12,962,000

Depreciation

362,572

Repayments of short-term loans payable△11,800,000△71

Proceeds from long-term loans payable

16,000,000

Proceeds from the issuance of investment units

15,957,467

Cash flows from financing activities

33,119,467

Interest income
Interest expenses

120,663

Investment unit issuance costs

57,584

Decrease (increase) in operating accounts receivable△4,243

Decrease (increase) in consumption taxes receivable△144,140

Cash and cash equivalents at the beginning of period

Decrease (increase) in prepaid expenses△42,931

Cash and cash equivalents at the end of interim period

Increase (decrease) in operating accounts payable

161,306

Increase (decrease) in advances received

143,550

Decrease (increase) in long-term prepaid expenses△98,327

Other, net△32,926

Subtotal

763,160

Interest expenses paid
Income taxes – current
Cash flows from operating activities

982,496
982,496

69,591

Increase (decrease) in accounts payable – other

Interest income received

Net increase (decrease) in cash and cash equivalents

71△119,496△14
643,721

Cash flows from investing activities
Purchase of property, plant and equipment in trust△32,966,807

Payments for lease and guarantee deposits△10,284

Repayments of tenant leasehold and security deposits in trust△19,086

Proceeds from tenant leasehold and security deposits in trust
Cash flows from investing activities

215,486△32,780,692

43

Feature of Excess of Earnings and Portfolio
Feature of Investments in Residential Properties
Located in Regions outside Tokyo

Feature of Samty Residential Investment
Corporationʼs Portfolio

A feature of investing in residential properties located in regions is its
tendency to incur depreciation that is relatively large in proportion to theacquisition price of properties.

Samty Residential Investment Corporationʼs portfolio is mainlycomprised of relatively new properties.
Furthermore, in accordance with the sponsor support agreement,
exclusive negotiating rights of S-RESIDENCE series, properties newly
developed and conveniently located, are granted to Samty Residential
Investment Corporation by the sponsor. Therefore, this feature isbelieved to remain going forward.

■Ex.: Comparison between residential properties in regions and inGreater Tokyo area
(Assuming depreciation period as 50 years, NOI yield as 6.0% and5.0% for regions and Greater Tokyo area respectively. These figures
are examples and do not represent any specific property owned by
Samty Residential Investment Corporation.)[Residential property
in a region]

Building: 3 billion yen
Land: 1 billion yen

Depreciation: 60 million yen/year
NOI yield： 6.0％
NOI yield after depreciation ：4.5％
Depreciation rate：1.5％[Residential property inGreater Tokyo area]
Building: 3 billion yen
Land: 3 billion yen

Depreciation： 60 million yen/year
NOI yield： 5.0％
NOI yield after depreciation ：4.0％
Depreciation rate: 1.0％

1

2

Portfolio composition with averagebuilding age of

7.6 years

Ratio of CAPEX to totalacquisition price ofproperties is expected toremain at a low level

Stable supply of newly developed
properties from the sponsor*Depreciation rate is the ratio of depreciation to the acquisition price of properties.

44

Unitholder Information (as of January 31, 2016)
Number of Units by Unitholder Type
Total 163,340 units

Major Unitholders (top 10)
Investment
Unitholder name
Japan Trustee Services Bank, Ltd.
Samty Co., Ltd.

10,000

6.12%

Kinki Sangyo Credit Union

7,588

4.64%

6,437

3.94%

5,292

3.23%

3,919

2.39%

Daido shinyoukumiai

3,500

2.14%

Individual

3,321

2.03%

Individual

2,396

1.46%

Osaka co-sei Shinkin Bank

2,310

1.41%

Total

62,56338.26%(Trust Account)
Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)（people）(units)10.89%The Master Trust Bank of Japan, Ltd.

Total 10,434 people

Ratio

17,800(Trust Account)

Number of Unit holders by
Unit holder Typeunits

The Nomura Trust and Banking Co., Ltd.
(Trust Account)45

Change in Investment Unit Price(June 30, 2015 to March 15, 2016)
Trading volume (right axis)（JPY）
100,000

Unit price (left axis)（Unit）
70,00060,00095,00050,00090,00040,00085,00030,00080,00020,00075,00010,00070,0000Jun. 30,2015

Sep. 30,2015

Dec. 31,2015

46

Disclaimer
 This document has been prepared to provide information, and not for inviting investments in or recommendingtransaction of certain products. When purchasing the investment units of Samty Residential Investment Corporation,please contact and inquire respective securities companies. Further to the above, we request investors to make final
investment decisions by their own responsibility and judgment.

 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 listing regulations of
the Tokyo Stock Exchange and other relevant laws and regulations.

 The data and analysis, etc. in this document are based on the actual results of a certain period in the past, and do notguarantee the management results or their fluctuations, etc. in the future. Further to the before mentioned, thecontents of this document include statements on future operating results. Such forward-looking statements do notconstitute 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 the fluctuations in the price of the managed realestate properties and their profitability.

 Samty Residential Investment Corporation does not guarantee the accuracy or completeness of the information

provided in this document. In addition, please note that the contents of this document may be changed or removed
without prior notice.

 Neither Samty Residential Investment Corporation nor Samty Asset Management Co., Ltd. bears any responsibility forthe 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 is prohibited.

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: +81-3-5224-5031
This document is not a disclosure material based on the Financial Instruments and Exchange Act.
We request investors to make final investment decisions based on their own judgment.