Samty Residential Investment Corporation（Securities CODE：3459）

Financial Results for the 6 th Fiscal PeriodEnding July 2018

⽬次
１. Features of Samty Residential Investment Corporation

P.3

２. Financial Overview for the 6th Fiscal Period

P.9

３. Managing Results

P.12

４. Future Growth Strategy

P.31

５. Operating Results and Distribution Information

P.37

６. Appendix

P.44

１. Features of Samty Residential Investment Corporation

New Initiatives of Samty Residential Investment Corporation
Additional acquisition of new properties and third-party allotment
by Daiwa Securities Group Inc.

 Welcomed Daiwa Securities Group Inc. as a new sponsor in February 2018 andintend to further stabilize, maintain and support the asset management system
33% transfer【Asset Management
Company】【Main sponsor】（注）
Samty Co., Ltd.(Note1)

100%

67%

Samty AssetManagement Co., Ltd.

Subsidiary

33%

0%

【Sub sponsor】
Daiwa Securities Group
Inc.(Note1)

Equity method affiliate

Asset management
Samty Residential
Investment Corporation

32.5% investment (Note2)(equity method affiliate)

5.5% investment (Note2)【Overview of Samty Co., Ltd.】
Establishment: 1982
Capital: 8.4 billion yen (as of the end of May
2018)
Number of employees: (consolidated) 195(as of the end of May 2018)
Business: Real estate business, real estateleasing business, real estate planning anddesign, etc.

Newacquisition

33 properties(29.9 billion yen)【Overview of Daiwa Securities Group Inc.】
Establishment: 1943
Capital: 247.3 billion yen (as of the end of March2018)
Number of employees: (consolidated) 16,088(as of the end of March 2018)
Business: Holding, management and control ofshares of companies engaged in financial
instruments business, etc.

(Note1) Samty Co., Ltd. and Daiwa Securities Group Inc. fall under a specified affiliated juridical person of the asset management company as set forth in Article 12-3 of the Cabinet
Office Ordinance on Disclosure of Information, etc., on Regulated Securities (Law Number: Ordinance of the Ministry of Finance No. 22 of 1993; including subsequent revisions).
(Note2) Figure from public offering conducted in August 2018

4

Investment Strategy of Samty Residential Investment Corporation
 Samty Residential Investment Corporation(“Samty Residential”) will invest in highquality residential assets suitable for respective regional conditions throughout
national cities with the sponsor support of the Samty Group(1) Features of Samty Residential
Samty Residential Investment Corporation aims to build a portfolio which pursues stability, growth potential and earningpotential by “investing primarily in residential properties in major regional cities,” “utilizing the Samty Group,” “receiving
various sponsor support” and “utilizing the functions and network of Daiwa Securities Group Inc.”

Investing primarily in residential properties in major regional cities
Stability

GrowthEarning Potential▶ Diversified investing in carefully
screened residential properties ofJapan▶ Expanding portfolio size throughcontinual new investments
primarily in major regional cities▶ Realizing large earnings
収益性
anticipated through investing in
carefully screened residential
properties in major regional cities

Support from the Samty Group
Properties developed by the Samty Group
Stable supply of the S-RESIDENCE series
Grant of exclusive negotiating rights
Stable supply of new developed properties

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

Wide-ranging support from the sponsor
Enhancing value through runninga unified brand
Provision of warehousing functions
Provision of human resources andmanagement/operating support
Provision of various information

Support from Daiwa
Securities Group
Utilization of functions andnetwork as a comprehensive
securities group
Provision of information
Supporting formation of abridge fund
Cooperation in securing staff“(Note) Samty Group” refers to Samty Co., Ltd. (the “Main Sponsor”), consolidated subsidiary companies of the Main Sponsor (Ordinance on Terminology, Forms and Preparation Methods ofConsolidated Financial Statements (Ministry of Finance No. 28 of 1976. Including subsequent amendments.) Referred to as consolidated subsidiary company as stipulated by Article 2(iii).) and special purpose companies which the Main Sponsor itself invests in, other than the consolidated subsidiary companies of the Main Sponsor, excluding Samty Residential.

5

Investment Strategy of Samty Residential Investment Corporation(2) Portfolio Development Policy
A. Investment policy by asset class Investing in accommodation facilities and otherfacilities, primarily in the residential asset class

Residential
properties(Note1)

 Focusing on investing in major regional cities
Investment areas

80% or more
20% or less

Focus on the Single andCompact type residences
Floor per unit of lessthan 30m2

Compact 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.

(Sapporo, Sendai, Nagoya, Kyoto, Osaka, Kobe,
Hiroshima and Fukuoka)
50% or more of all investments will be inproperties that are conveniently located nearbus terminals or railway stations linked withother major terminal stations.

50%
or moreAround70%

Other regional cities(Regional cities excluding
major regional cities)
20% or less of investments will be inresidential properties that can be anticipatedstable operation rental and income stability
because of their commutable location to core
office areas, medical facilities or national
universities located in the area.

GreaterTokyo area

Single Type

Investment ratio (Note3)

Major regional cities

Regional cities

Operatingfacilities(Note2)

Ｂ. Investment policy by geographical area

20%
or less

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

Around30%(Note3) "Investment ratio" is based on the acquisition price (excluding acquisition-related
expenses and taxes). The above investment ratios are future targets and actual portfolio
composition may vary.

6Portfolio Overview 1■Samty Residential has acquired 93 residential properties throughout Japan and successfully
composed more stable diversified portfolio concentrating in major regional cities
Hokkaido 7
photoNiigata 1

Kyoto 3
Hyogo 6

Asset size
89.6 billion yen

Average building age
8.6 yearOccupancy rate
95.1％

Average appraisal
NOI yield 5.4％

Tochigi 1

Hiroshima 2

Saitama 2

Fukuoka 6

Miyagi 4

Saga 2
Ibaraki 1
Chiba 6
Osaka 10
Mie 5
Kumamoto 3

Aichi 15

Oita 3

Shizuoka 2

Tokyo 7
Kanagawa 7

Area

No. ofProperties

No. ofrentable
units

Major
regional cities

48

3,532

Other
regional cities

23

1,767

Greater Tokyo
area

22

1,161

Total

93

6,460

(Note) The figures for number of properties and asset size include the 10 properties acquired on August 28, 2018 and the property scheduled to be acquired on November 26, 2018 (the “Newly
Acquired Properties”). The figures for average building age are for the 93 properties owned as of July 31, 2018, including the existing 82 properties and Newly Acquired Properties. Building ageof S-RESIDENCE Matsudo is indicated as 0.0 years as it is not completed. Average appraisal NOI yield is calculated based on the figures of the appraisal report as of July 31, 2018 for the
existing 82 properties and as of June 1, 2018 for the Newly Acquired Properties. Figures for occupancy rate are for the existing 82 properties owned as of July 31, 2018.

7

Portfolio Overview 2
Investment structure of owned properties
Investment ratio by geographical area

Familytype
11.0%

GreaterTokyo area
21.2%
Chugoku Koushinetsu
1.1%
1.9%

Ratio ofRegional
citis
Hokkaido
78.8%
5.5%
Tohoku

Kinki
27.4%

Kita Kanto
2.7%

6.3%
Other
KyusyuRegional cities
14.2%
23.2%

Tokai
19.8%

Major
Regional cities
55.6%

Ratio by building age
15 years to lessthan 20 years
7.6%

10 years toless than 15
years
50.2%

Ratio of average area per residential unit

Compacttype
39.0%

Ratio ofsingle andcompact type
89.0%

Singletype
50.0%

Investment ratio by
information/acquisiton channel(Note2)Less than
5 years
34.2%

Averagebuilding age
8.6 year
5 years toless than 10
years
8.0%

Warehousing
Developed/Owned
25.4%
by sponsor
44.9%
Sponsor AM
50.2% 49.8%
Third party
13.0%
Bridge(SPC)
4.1%

Third party
1.3%

Bridge(SPC)
11.3%(Note1) The above ratios are calculated based on acquisition prices for 93 properties, including 10 properties newly owned on August 28, 2018 andone proptertis scheduled to be owned on November 26m 2018.
(Note2) The outer ring indicates the ratio of acquisition channel of owned properties while the inner ring indicates that of information channel of owned properties.

8２. Financial Overview for the 6 th Fiscal Period

Summary of Income Statement for 6th Fiscal Period
Comparison of Forecast and Actual Result
Although real estate rental revenue was lower than the assumption, key money income, renewal fee andother real estate rental revenue increased. The actual result was generally
Vs. 6th fiscal period forecast
as expected with decreased borrowing related expenses(million yen)
6th Period (July 31, 2018)

5th Period

4th Period

results

results(July 31, 2018)

ChangeForecast(January 31,

Results(As of March 15,

2018)

from

2018)

Vs 4th and 6th

Vs. 5th andresults

6th results

Forecast

Management performance
Operating revenue

1,840

1,834

2,869

2,888

18

1,047

1,053

1,840

1,817

2,861

2,875

14

1,035

1,058

1,081

1,045

1,474

1,483

9

402

438

838

803

1,184

1,200

15

361

396

759

789

1,395

1,404

9

645

614

-144

-169

-400

-392

7

-248

-223

Ordinary income

614

620

994

1,011

17

396

390

Corporate tax, etc.

0

0

1

0

0

0

0

613

619

993

1,010

17

396

390

(out of which, real estate
rental revenue)
Operating expenses(out of which, real estate
rental expenses)
Operating income
Non-operating income andloss

Net income■Distributions(Note)(yen)

Distribution per unit
(Not including distribution

2,169

2,191

2,175

2,213

38

44

22

in excess of earnings)・・・①
Distribution in excess ofearnings

501

484

495

468

-27

-33

-16

2,670

2,675

2,670

2,681

11

11

6

per unit・・・②
Total distribution per unit ・・・①+②(Note1) Calculated with the number of investment units issued at 283,000 for 5th period and 456,600 for 6th period.
(Note2) For more details, please refer to “Change in forecast actual forecast” on page P.39.

Although revenues from rents including common area
expenses decreased, operating revenue was 2,888
million yen (+18 million yen from the plan) due to theincrease in key money, renewal fees and other revenue
as well as the increase in revenues from silent
partnership distribution. In addition, operating expenses
was 1,483 million yen (+9 million yen from the plan)and operating income was 1,404 million yen (+9 million
yen from the plan) due to the increase in restoration
expenses and leasing promotion expenses. Nonoperating expenses was 392 million yen (-7 million fromthe plan) due to the decrease in financial costs, and net
income was 1,010 million yen (+17 million yen from theplan) as a result of the above changes.

Vs. 6th fiscal period forecast(+ indicates increase factors, – indicates decrease factors)）■ Increase in operating revenue
・Decrease in revenues from rents
including common area expenses
・Increase in other revenues fromrental business・Increase in income from silent
partnership distribution+18 million yen■ Increase in operating expenses
・ Increase in leasing promotion
expenses・ Increase in restoration expenses
・ Decrease in repair expenses
・ Decrease in selling, general andadministrative expenses+9 million yen-27 million yen+41 million yen+4 million yen+10 million yen+16 million yen-9 million yen-6 million yen■ Decrease in non-operating income+7 million yen
and loss+1 million yen
・ Decrease in interest expenses
・ Decrease in borrowing related expenses +4 million yen【Average occcupancy rate】

Forecast：96.2％

Actual：95.6％【Capital expenditures】
Forecast：68 million yen
Actual：68 million yen【Payout ratio】

Forecast：74.4％
Actual：73.8％

10

Summary of Income Statement for 6th Fiscal Period
Comparison of Forecasted Distribution with Actual Result
Comparison of forecast and actual results for 6 th fiscal period
Operating revenue factors＋18 mn yen（+41 yen）
Total distribution
1,219 mn yen（2,670 yen）
Payout ratio
74.4%

Distribution
Excess of
earnings
226 mn yen(495 yen)

Increase in
Other income＋35 mn yen（＋77 yen）

Key money
income6 mn yen

Rental common
area expenses
income27 mn yen

Distribution
993 mn yen(2,175 yen)

Increase inDistribution ofanonymous
partnership＋4 mn yen（＋10 yen）

Renuwal fee
4mn yenRestration
income25 mn yen
Other income
5 mn yen

Decrease inrentalrevenues andcommon area
expenses
income-21 mn yen（-47 yen）

6th period forecast distribution(announced in March 15, 2018)(Note) The above figures are rounded down to the nearest whole number.

Operationg expensed
factors-9 mn yen（-20 yen）
Decrease inreal estate
rentalexpenses+15 mn yen（＋34 yen）
Other epenses
1 mn yenRepairexpenses
9 mn yenTaxes and dues
1 mn yen
Utilities
expenses
2mn yenNon-operating income andexpense factors+7 mn yen
（16 yen）
Total distribution
1,224 mn yen（2,681 yen）

Other expenses
2 mn yen
Decrease in
selling, generalandadministrative
expenses
6 mn yen（+16 yen）

Leaseing
promotion
expenses 10
mn yenRestoration
expenses
16 mn yen

Decrease in
non-operation
expenses
7 mn yen（+16 yen）
Borrowing
relatedexpenses
4 mn yen

Payout ratio
73.8%
Distribution inexcess of
earnings
213 mn yen（468 yen）

Total
increase inInterest
expenses
2 mn yen

distribution＋17 mn yen（＋38 yen）

Increase inreal estate
expenses▲29 mn yen（-63 yen）

Increase indepreciationetc.
▲1 mn yen（-4 yen）
Distribution
1,010 mn yen(2,213 yen）

6th period
actual result11３. Managing Results

Management SummaryExternal
GrowthInternal
GrowthSamty Residential will continue to aim for expansion of asset size by utilizing warehousing in cooperation with the bridge fund andsponsor and cooperating with developers⇒Acquired new properties worth 29.9 billion yen (33 properties) in February and March 2018. Also acquired new properties worth 8.1
billion yen (11 properties) in August and November 2018. Asset size expanded to 89.6 billion yen (93 properties) and stability
increased with the progress in the dispersion of portfolio


Average occupancy rate remained stable and rent unit prices are also strong

However, period-end occupancy rate in major regional cities is at the lowest level ever

⇒ Cause: Management of existing properties was not implemented suﬃciently and operation became sluggish as a result of theacquisition of the 33 properties associated with the third-part allotment and focus on value enhancement after the acquisition.
In addition, although the goal of NOI has been achieved, profits increased only slightly with the increase in restoration expenses andleasing promotion expenses.

Financial
StrategySamty Residential intends to diversify its fund procurement methods by conducting capital increase through third-party allotment
with Samty Co., Ltd. and Daiwa Securities Group Inc. as the allottees and capital increase through public offering.

Samty Residential developed a solid financial base and decreased the spread by diversifying repayment dates of and fixing theinterest rates for interest-bearing liabilities, etc.

Samty Residential acquired a long-term issuer credit rating of A-(stable) from JCR.

◆ Portfolio highlights
After the capitalEnd of 3rd period

End of 4th period

End of 5th period(January 31, 2017)(July 31, 2017)(January 31, 2018)

increase through third-

End of 6th period

party allotment(July 31, 2018)（Afteracquired 11 properties)(after purchased 33 properties)

No. of properties

After the PO in
August 201849 properties

49 properties

49 properties

82 properties

82 properties

93 properties

Total acquisition price

51,551 million yen

51,551 million yen

51,551 million yen

81,515 million yen

81,515 million yen

89,642 million yen

Appraisal value

55,693 million yen

56,490 million yen

56,658 million yen

87,626 million yen

87,976 million yen

96,356 million yen

Appraisal NOI yield

5.6%

5.6%

5.6%

5.5%

5.5%

5.4%

NAV per unit (Note1)

97,779 yen

101,449 yen

102,854 yen

94,954 yen

97,025 yen

95,424 yen

7.9 year

8.4 year

8.9 year

8.5 year

9.0 year

8.6 year(Note2)

95.1%

94.6%(Note3)

5,920 units

5,920 units

6,460 units

Average building age
Occupancy rate
No. of rentable units

97.5%

95.6%

96.5%

3,754 units

3,754 units

3,754 units

96.2%(Note 1） Calculated by: Unitholdersʼ capital + Unrealized gain/loss (Appraisal value – Book value) / Number of investment units issued.
After the PO in August 2018, it will be calculated by deducting from the appraisal value the assumed expenses added to the acquisition price of the properties.
(Note 2) Occupancy rate after the capital increase through third-party allotment is based on the figures as of the end of January 2018 for the existing 49 properties and the figures as of the end of October 2017 for the 33 properties
newly acquired on February 1 and March 1, 2018. It is assumed that the fixed rent master lease agreement concluded with J.S.B. Co., Ltd. and Samty Residential Investment Corporation on February 1, 2018 for
S-FORT Oita Otemachi and the lease agreement concluded with Mininet, Inc. and Samty Co., Ltd. on March 1, 2018 for S-FORT Osu Kannon existed as of the end of October 2017(Note 3) As for S-RESIDENCE Miyanomori,calculation is based on occupancy rate, which is regarded to be 100% as rent is guaranteed by the main sponsor from August 28, 2018 to July 31, 2019.
S-RESIDENCE Matsudo is excluded from the calculation as it is not yet complete.

13

External Growth

Overview of Public Offering in August 2018 and Newly Acquired Properties■ Samty Residential has contributed to the improvement of unitholder value as well as realized theimprovement of its portfolio and earning potential through steady expansion of asset size sincelisting.

◆ Overview of public offering

Details ofoffering

Number of investment
units issued
47,500 units
Number of investment units
offered through over-allotment
2,375 units
Date of resolution of
issurance
August 10, 2018

Schedule

Payment date
Delivery dateAugust 27, 2018
August 28, 2018

◆ Overview of property acquisition
No. ofproperties

Total
acquisition
price

11

8.1 billion
yen

89,895 yen per unit

Price ofoffering(Final closing price on the day on which
the conditions were determined:
92,200 yen)

Total amountof offering

4,270 million yen

Amount ofprocurement

4,116 million yen

Lead Managers(Co-LeadManagers)

Daiwa Securities Co., Ltd.
Nomura Securities Co., Ltd.

Appraisal value

Averageappraisal NOI
yield

Averagebuilding age

8.3 billion
yen

5.0%

4.2 years(Note 1) Average appraisal NOI yield is calculated based on the figures of the appraisal report as of July 31, 2018 for the existing 82 properties and as of June 1, 2018 for the Newly Acquired Properties.
(Note 2) Figures are calculated as of July 31, 2018. Building age of S-RESIDENCE Matsudo is indicated as 0.0 years as it is not completed.

14External Growth

Properties acquired (scheduled to be acquired) in August/November 2018
(S-RESIDENCE Series)
A-43 S-RESIDENCE
Shin Osaka Ridente

Acquisiton
price(million yen)Appraisalvalue(millin yen)Appraisal
NOI yield

1,338

1,390

4.6%

A-47 S-RESIDENCE
Miyanomori

Acquisiton
price

C-22 S-RESIDENCE
Matsudo(million yen)Appraisalvalue(millin yen)Appraisal
NOI yield

660

679

Acquisiton
price(million yen)Appraisalvalue(millin yen)Appraisal
NOI yield

5.4%

840

850

4.6%

Location

Yodogawa-ku,
Osaka-shi

Location

Chuo-ku, Sapporo-shi

Location

Matsudo-shi, Chiba

AccessAbout 10-min walk from
Mikuni Station, Hankyu
takarazuka Line

AccessAbout 4-min walk from
Chokoku Bijutsukan
Iriguchi Bus Stoop, JR
Hokkaido Bus

Access3-min walk from Matsudo
Station JR Joban Line

No. ofrentable units

52 units

Completion
date

Oct. 2018 (scheduled)

No. ofrentable units

90 units

No. ofrentable units

Completion
date

Jan.2018

Completiondate

22 units
Nov. 201715

External Growth

Properties acquired (scheduled to be acquired) in August/November 2018
⼤学に近接
(S-FORT Series)
A-44 S-FORT Fukushima La Luna
Acquisiton
price

A-45 S-FORT Fukushima Libre(million yen)Appraisalvalue(millin yen)Appraisal
NOI yield

896

923

4.7%

Acquisiton
price(million yen)Appraisalvalue(millin yen)Appraisal
NOI yield

538

538

4.7%

Location

Kita-ku, Osaka-shi

Location

Fukushima-ku, Osaka-shi

AccessAbout 10-min work from
Fukushima Station, JR
Osaka Loop Line

AccessAbout 1-min walk form
Sagisu 6-chome Bus Stop,
Osaka City Bus Line

No. ofrentable units
Completiondate

48 units

No. ofrentable units

Jan. 2016

Completiondate

A-46 S-FORT Kamiyashiro
Acquisiton
price

U

(million yen)(millin yen)Appraisal
NOI yield

Acquisiton
price

429

430

AccessNo. ofrentable units
Completion
dateAug. 2016

A-48 S-FORT Higashi-Sapporo Nordo

Appraisal
value

Location

36 units(million yen)Appraisalvalue(millin yen)Appraisal
NOI yield

5.7%

303

430

5.7%

Meito-ku, Nagoya-shi

Location

Shiroishi-ku, Sapporo-shi

Access9-min walk from Higashi
Sapporo Station, Sapporo
City Subway Tozai Line

About 5-min walk from
Kamiyashiro Station,
Nagoya City Subway
Higashiyama Line
42 units
Feb.2004

No. ofrentable units 24 units
Completion
dateFeb. 200516

External Growth

Properties acquired (scheduled to be acquired) in August/November 2018
(S-FORT Series)
B-21 S-FORT Esaka Tarumicho
Acquisiton
price

B-22 S-FORT Niigata Honcho(million yen)Appraisalvalue(millin yen)Appraisal
NOI yield

774

788

5.0%

Acquisito
n priceU

M(million yen)Appraisalvalue(millin yen)Appraisal
NOI yield

960

967

5.6%

Location

Suita-shi, Osaka

Location

Chuo-ku, Niigata-shi

AccessAbout 10-min walk from
Esaka Station, Osaka
Metro Midosuji Line

AccessAbout 3-min walk from
Honcho Bus Stop, Niigata
Kotsu Bus Line

No. ofrentable units
Completiondate

48 units

No. ofrentable units

Nov. 2016

Completiondate

B-23 S-FORT Motohama
Acquisiton
price

M

(million yen)Appraisalvalue(millin yen)Appraisal
NOI yield

239

240

6.0%

83 units
Mar. 2018

C-21 S-FORT Fujimidai
Acquisiton
price(million yen)Appraisalvalue(millin yen)Appraisal
NOI yield

1,150

1,270

5.1%

LocationNaka-ku, Hamamatsu-shi

Location

Nakano-ku, Tokyo

AccessAbout 6-min walk from
Enshubyoin Station, Enshu
Railway Line

AccessAbout 1-min walk from
Fujimidai Station, Seibu
Ikebukuro Line

No. ofrentable units
Completiondate

34 units
Mar.2007

No. ofrentable units
Completiondate

61 units
Aug. 200817

External Growth

Properties acquired in February/March 2018 (list of properties
acquired in the 6th fiscal period)
List of properties
U

Major regional cities
M

S-RESIDENCE Midoribashi SF

Location

Higashinari-ku, Osaka

Completion dateOct-16

S-FORT
Tsurumai reale

S-FORT
Osu Kannon

M

Close to medical institution

S-FORT
Kita-Sanno

S-FORT
Aratamabashi

Showa-ku, Nagoya-shi

Naka-ku, Nagoya-shi

Nakagawa-ku, Nagoya-shi

Minami-ku, Nagoya-shi

No. of rentable units

56 units

84 units

36 units

29 units

Completion dateJan-17Jan-18Aug-12Mar-99U
LocationU

Close to universities

S-FORT
Toyohira Sanjyo

M

U

S-FORT
Kitamaruyama

S-FORT Hakata
Higashi II

S-FORT Hakata
Higashi I

Number of rentable units 148 units
Appraisal value

1,950 million yen
Approx. 2-minute walk from

AccessMidoribashi Station on the Chuo
Line and Imazatosuji Line of Osaka Location

No. ofproperties
Major
regional
citiesOther
regional
citiesGreater
Tokyo
area

Total

No. of units

13

771
units

11

902
units

9

493
units

33

2,166
units

properties
properties
properties
properties

Toyohira-ku, Sapporo-shi

Chuo-ku, Sapporo-shi

Hakata-ku, Fukuoka-shi

Hakata-ku, Fukuoka-shi

No. of rentable units

63 units

49 units

35 units

35 units

Completion dateMar-08

Oct-07

Feb-18

Feb-03

S-FORT Kobe
Sannomiya-Kita

S-FORT
Nakahirodori

Location

M

U

S-FORT
Tsurumicho

M

U

S-FORT
Aoba Kamisugi

Chuo-ku, Kobe-shi

Nishi-ku, Hiroshima-shi

Naka-ku, Hiroshima-shi

Aoba-ku, Senda-shi

No. of rentable units

45 units

74 units

51 units

66 units

Completion dateMar-04Mar-07

Oct-08

Oct-0718

External Growth

Properties acquired in February/March 2018 (list of properties
acquired in the 6th fiscal period)
List of properties
Other regional cities
U
S-FORT
Nishinomiya

S-FORT
Nishinomiya
Uegahara

Nishinomiya-shi,

Nishinomiya-shi,

Hyogo

Hyogo

No. of rentable units

102 units

Completion dateMar-09Location

S-FORT Oita
OtemachiLocation

Oita-shi, Oita

U

Greater Tokyo area
S-FORT
Mito Chuo

Close to universities

M

Close to medical institution

S-FORT Tsu M U S-FORT Mie U S-FORTU S-FORT
Shinmachi
Takasagomachi
Oita Ekimae
Daigaku-mae

Mito-shi, Ibaraki

Tsu-shi, Mie

Tsu-shi, Mie

Oita-shi, Oita

Oita-shi, Oita

62 units

80 units

69 units

62 units

92 units

91 units

Feb-07

Jan-08Jan-10

Feb-06

Dec-06Mar-07

S-FORT
SuizenjiMU

M U S-FORT
S-FORT
Kumamoto
Kumadaibyoin
Senba
-mae

Kumamoto-shi,

Kumamoto-shi,

Kumamoto-shi,

Kumamoto

Kumamoto

Kumamoto

Student S-FORT
domitory

Hoya

U

S-FORT
S-FORT
Tamagawagakuen Tsurukawa-mae

Nishi-Tokyo-shi, Tokyo

Machida-shi, Tokyo

Machida-shi, Tokyo

No. of rentable units

35 units

119 units

99 units

91 units

60 units

45 units

30 units

Completion dateJul-16

Jul-06

Feb-06

Jan-18Mar-07

Feb-08Mar-02Company-rentedhousing

S-FORTS-RESIDENCE
Yokohama Tanmachi Chigasaki

S-FORT
Kawaguchi
Namiki

Yokohama-shi,

Chigasaki-shi,

Kawaguchi-shi,

Kanagawa

Kanagawa

Saitama

No. of rentable units

36 units

36 units

Completion dateNov-16

Jan-17

Location

S-FORT
Todakoen

Company-rentedhousing

S-FORT
Funabashi
TsukadaS-FORT
Kashiwa

Toda-shi, Saitama

Funabashi-shi, Chiba

Kashiwa-shi, Chiba

70 units

62 units

117 units

37 units

Jul-16

Jan-17Mar-08Mar-0619

Internal Growth

Changes in the Occupancy Rates by Area
Occupancy rate for the entire portfolio has risen 2.3 point from the time of
IPO. Currently it stably keeps over 95%.

Began managementwith 28 properties
On July 1, 2015

Occupancy rate in major regional
cities is on a downward trend
compared to past years

Average occupancy rate：93.8％

Average occupancy rate：95.3％

Average occupancy rate：96.5％

Average occupancy rate：96.4％

Average occupancy rate：96.2％

Average occupancy rate：95.6％

1st Fiscal Period(January 31, 2016)

2nd Fiscal Period(July 31, 2016)

3rd Fiscal Period(January 31, 2017)

4th Fiscal Period(July 31, 2017)

5th Fiscal Period(January 31, 2018)

6th Fiscal Period(July 31, 2018)

Occupancy rate(%)

1st Fiscal Period
3rd Fiscal Period
2nd Fiscal Period(January 31,(January 31,(July 31, 2016)
2016)
2017)

4th Fiscal Period (July 31, 2017)

5th Fiscal Period (January 31, 2018)

6th Fiscal Period (July 31, 2018)

30-Jun31-Jan31-Jul

31-Jan28-Feb31-Mar30-Apr31-May30-Jun31-Jul31-Aug30-Sep31-Oct30-Nov

31-Dec31-Jan28-Feb31-Mar30-Apr31-May30-Jun31-JulMajor regional cities

92.7

95.6

95.3

97.8

97.7

98.0

96.1

95.0

94.4

95.2

95.1

95.8

95.5

95.5

96.1

96.3

96.2

96.8

95.3

94.4

94.7

94.2

Other regional cities

93.8

95.3

95.2

96.9

96.3

97.6

97.2

96.6

96.4

95.8

96.2

97.0

97.5

97.5

97.3

97.0

95.0

96.3

95.5

94.5

94.6

95.2

Greater Tokyo area

92.5

93.5

96.2

96.7

96.6

98.4

98.4

97.6

97.6

97.8

97.7

97.9

97.4

97.2

97.5

96.4

97.8

98.0

97.5

97.5

97.7

97.6

Overall

92.8

95.2

95.4

97.5

97.3

98.0

96.6

95.6

95.1

95.6

95.6

96.2

96.1

96.0

96.5

96.5

96.1

96.8

95.7

94.9

95.1

95.1

(Note) Occupancy rates shows the ratio of total leased floor space to total rentable floor space as of each month end for each property, rounded off to one decimal place. Occupancy rates fromend of April 2015 to end of August 2015 excluding recently completed S-FORT Tsurumai marks and S-FORT Shonan Hiratsuka as well as S-FORT Gakuenmae which was acquired on October 1,
2015. The Occupancy rate for end of September 2015 includes S-FORT Tsurumai marks and S-FORT Shonan Hiratsuka, but excludes S-FORT Gakuenmae which had not been acquired. The
occupancy rate for end of July does not include the 20 properties acquired in August 2016.
The occupancy rate for end of August 2016 excludes recently completed S-FORT Tsurumai cube. In addition, the occupancy rate as of the end of February 2018 does not include that of S-FORTOsu Kannon acquired on March 1, 201820

Internal Growth

Changes in unit rent after adjustment◆Unit rent after adjustment of the entire portfolio remained stable, maintaining earning potentialof the portfolio
Began managementwith 28 properties
On July 1, 2015

■Upper row: 49 properties (existing
1st Fiscal Period
Rent unit price after adjustment(January 31,

End of June 2015 = 100

2016)30-JunMajor regional cities

properties)
2nd Fiscal Period(July 31, 2016)

5th Fiscal Period(January 31, 2018)

4th Fiscal Period(July 31, 2017)

3rd Fiscal Period(January 31, 2017)

2nd Fiscal Period(July 31, 2016)

1st Fiscal Period(January 31, 2016)

6th Fiscal Period(July 31, 2018)■Lower row: 33 properties (properties acquired in February and March 2018)

3rd Fiscal Period
4th Fiscal Period (July 31, 2017)(January 31,

5th Fiscal Period (January 31, 2018)

6th Fiscal Period (July 31, 2018)2017)

31-Jan31-Jul

31-Jan28-Feb

31-Jan28-Feb31-Mar30-Apr31-May30-Jun31-Jul100.0 100.2

100.5

100.6

100.6 100.7 100.7 100.8 100.9 101.0 101.0 101.1 101.1 101.2 101.2 101.2

31-Mar30-Apr31-May30-Jun31-Jul31-Aug30-Sep31-Oct30-Nov

31-Dec

101.3

101.4

101.5

101.6

101.6

101.6

Other regional cities

100.0 100.0

100.2

100.5

100.6 100.7 100.8 100.8 100.9 101.0 101.0 101.1 101.1 101.1 101.2 101.2

101.3

101.4

101.6

101.7

101.8

101.8

Greater Tokyo area

100.0 100.1

100.4

100.4

100.4 100.6 100.6 100.6 100.7 100.7 100.7 100.8 100.9 100.9 100.9 100.9

100.8

101.2

101.1

101.1

101.2

101.2

Overall

100.0 100.1

100.5

100.5

100.6 100.7 100.7 100.8 100.9 100.9 101.0 101.1 101.1 101.1 101.2 101.2 101.2 101.4 101.5 101.5 101.6 101.6(Note)
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
Unit rent after adjustment for each area was calculated through simple averaging of unit rent after
adjustment of each property in accordance with the numberof properties in the relevant area in the past presentation materials. However, starting in the current fiscal
period, such is calculated through weighted
averaging of unit rent after adjustment of each property in accordance with the contracted area ratio of
each property in the relevant area.

6th Fiscal Period (July 31, 2018)

Rent unit price after adjustment
End of February 2018 = 100
28-Feb31-Mar30-Apr31-May30-Jun31-JulMajor regional cities (TPA)

100.0 100.0 100.1 100.2 100.9 101.0

Other regional cities (TPA)

100.0 100.2 100.2 100.3 100.4 100.4

Greater Tokyo area (TPA)

100.0 100.0 100.2 100.2 100.1 100.2

Overall (TPA)

100.0 100.1 100.2 100.2 100.5 100.6

21

Internal Growth

Increase or Decrease of Unit Rent after adjustment at the time of
Tenant Replacement◆The ratio of increase of unit rent after adjustment
at the time of tenant replacement is 56.3%■ Increase or decrease of unit rent after adjustment
at the time of tenant repacement (Note)(No. of units / Composition ratio)
Increase exceeding 5%
Unchanged
Decrease exceeding 5%

Increaes of 5% or lessDecrease of 5% or less

700

Total 679 units
35 units

600

167 units

Total 465 units
30 units

300

200

95 units

105 units

34 units

55 units

101 units
51 units

Decrease
202 units/29.7%(+67 units/-5.1%)

268 units
Increase
382 units/56.3%(+181 units/+4.3%)

132 units
99 units

69 units

4th fiscal period
5th fiscal period(As of July 31, (As of January 31,
2017)
2018)

Unchanged
95 units/14.0%(+44 units/+0.8%)

176 units

100

0【6th fiscal period】

Total 387 units

500

400

【5th fiscal period】

114 units
6th fiscal period(As of July 31,
2018)(Note) 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

5th fiscal period to 6th fiscal period[Increase factors]
 Number of tenant replacements increased fromthe 5th fiscal period as the peak season started
 Worked to increase rents by having
negotiations upon tenant replacement
 Continue to promote the acquisition of key
money upon replacement as part of sales
strategy

6th fiscal period[Breakdown of increase through negotiation
cases/total number of increased cases](1) Increase due to negotiation(2) Increase due to review ofrent balance(3) Increase due to elimination ofrent gap(4) Increase due to receiving
key money/acquiring more
key money than the previous

168 cases
189 cases
20 cases
5 cases

6th fiscal period[Decrease factors/total number ofdecreased cases]
63cases(1) Decrease due to review ofrent balance(2) Decrease due to rent gap(3) Decrease due to not receiving
key money

75cases
95 cases(unit rent excluding key money has risen as for 31 properties)

22

Internal Growth

Change in Renewal Status of Owned Properties◆Renewal rate remained at a high level of around 90%■ Change in the number of renewals and renewal rates
1,500 units

94.3%

1,300 units

92.0%

1,100 units

No. of renewals

Renewal rates

92.2%

1,179 units
92.1%

91.2%
913 units

900 units

89.3%

700 units

526 units

500 units

657 units

94.0%
92.0%
90.0%
88.0%

646 units

86.0%

493 units

84.0%

300 units

82.0%

100 units

1st Fiscal Period(January 31, 2016)

2ne Fisal Period(July 31, 2016)

3rd Fiscal Period(January 31, 2017)

4th Fiscal Period(July 31, 2017)

5th Fiscal Period(January 31, 2018)

6th Fiscal Period(July 31, 2018)

80.0%■ Change in the number of renewal fee collectionsand the amounts collected(Thousand yen)

24,000433 units

21,000(34.2%)

18,000223 units

15,00012,000
9,000
6,000
3,000
0

(24.4%)

92 units(17.5%)

112 units(22.7%)

6,982
(75）

6,471
（57）

1st Fiscal Period(January 31, 2016)

2ne Fisal Period(July 31, 2016)

99 units(15.1%)

12,253（54）

154 units

18,682（43）(23.8%)
9,882
（64）

4,178
（42）
3rd Fiscal Period(January 31, 2017)

4th Fiscal Period(July 31, 2017)

5th Fiscal Period(January 31, 2018)

6th Fiscal Period(July 31, 2018)23

Internal Growth

Future measures for leasing ①◆Progress in properties with low occupancy in the previous fiscal period【List of properties whose goal has been achieved 】
Property
name

Occupancy Occupancy
Target of Schedule forrate as of rate as ofoccupancy achieving
the end of the end ofrate
initial goal
January
July

Efforts for achieving goal

S-FORT
Shin Osaka ravir

89.8%

96.0%

92.0%

-Increasing name recognition of the property by holding a viewing event and changing the PM
Until the end
companyof April-Appealing the efficiency and improvement of various procedures, etc. to brokers

S-FORT
Nakajima
Koen

85.6%

95.5%

93.5%

-Taking in relocation needs of neighboring residents through posting, etc.
Until the end-Conducting a campaign limited to brokers with records of recently concludingof April
contracts with customers

S-FORT
Kurumamichi

79.8%

89.7%

97.1%

Until the end -Renovating vacant units on the top floorof April-Occupancy rate as of the end of August is 100%

【List of properties making continuous progress】
Occupanc
Occupancyy rate as Target of Schedule forrate as of
Property nameof the occupancy achieving
the end of
end ofrate
initial goal
January
July

S-FORT
Shizuoka
Hondori

S-FORT
Tsurumai cube

85.7%

89.0%

82.1%

86.2%

Cause of low occupancy(current status)

Improvement measures

96.4%

Until the endof May↓(reset)Until the endof December-Width and open spaces of the property
are not appealed and needs for a layoutof over 30㎡ cannot be captured-Needs via brokerage companies in the
Greater Tokyo area such as corporate
contracts are not taken in-Insufficient parking lot within the site

-Changing the PM company and sub PM
company-Scheduled to renovate the living room(changing lighting, cloth, etc.)-Aiming to strengthen the relation with corporate
brokerage companies in the Greater Tokyo areawith records and take in demand from
corporations in early autumn-Securing vacant parking lot in the neighborhoodof the property

94.4%

Until the endof April↓(reset)Until the endof November-Although full occupancy was achieved
during the 6th fiscal period (March) as aresult of focusing on taking in target
groups such as contacting luxury rental
apartment brokers, lease contracts offamily-type units were cancelled from
June to July.

-Installing air conditioners at living rooms where
air conditioners were not equipped-Preparing living rooms with furniture and home
appliances to take in demand from corporations
from the second half of August to the first half ofOctober(Note) PM company refers to property management company (management company of properties)

24Internal Growth

Future measures for leasing ②◆Properties with low occupancy in the current fiscal period and future improvement plans
Property
name

S-FORTAoi 1-Chome
S-FORT
Aoi
S-FORT KitaSanno

Occupancy rate Target of
as of the occupancy
end ofrate
July

Cause of low occupancy

Improvement measures-Changing the layout through renovation

87.0%

78.6%

92.5%

-Layout needs were not taken in
Until the end -Not corresponding to the budgeted price range of corporate -Reviewing the balance of rent for the upper and lower floors andchanging the rent for the lower floors to a price range within the budgetof December contracts

92.9%-Failed to gain advantage and achieve differentiation from
Until the end competitive rental condominium as there were no vacantof December spaces at the parking lot within the site and parking lot
outside the site was not be secured in the neighborhood

92.7%

Until the end high compared to upper floor rentsof December -Failed to differentiate the property from properties around-The price range of rent for medium to lower floors was set

78.2%

terminal stations such as Sakae and Kanayama stations

S-FORT
Kitamaruyama

81.6%

92.2%

S-FORT Kobe
SannomiyaKita

89.0%

93.4%

S-FORT
Suminodo

85.7%

92.9%

S-FORT
Nishinomiya

87.6%

93.5%

S-FORT
Sagamihara

Scheduleforachieving
goal

88.6%

94.3%

of corporations-Securing a parking lot outside the site in the neighborhood (also consider
using the parking lot of S-RESIDENCE properties outside the siteaccording to the occupancy status)-Considering the review of rent by the number of floors and layout-Considering the introduction of a plan to mitigate initial costs for living
room-Creating a drawing that can appeal the enrichment of indoor facilities
and property grade-There were large vacant areas as tenants of the retail space-New tenant is scheduled to occupy the retail space on the 1st floor fromon the 1st floor were replaced in the same period
August-Already reviewed the rent for the retail portion. Also considering
reviewing the balance of rent for the residential portion
properties- Failed to refill vacancies due to continuous cancellation of-Renovating common area during Marchlease contracts from March onwards-Introducing free internet facility in July
-Installing a model room and thoroughly informing the above
Until the end -New properties with low rent were constructed one after
construction work and capital investmentof October another in the neighborhood-The transfer period of corporations was delayed and demand -Implementing measures for corporations and contacting professionalfrom students was lower than assumed
vendors of multinational tenants-The price range of the rent of the property was competitive-Differentiating the property from others by renovating the concept roomwith that of a property with the same grade located in the- Introducing free internet facility
Until the end center of Osaka City
-Reviewing the balance of rent for the upper and lower floors andof December - Differentiation was insufficient for 1K type with a similarchanging to a price range within the budget of corporations
layout as competitive properties in the neighborhood-Implementing leasing measures for individuals (implementation of a plan
to reduce initial costs, use of drawing appealing to the eye such as thegrade of the living room)-Failed to fulfill needs from customers sufficiently in terms of
Until the end facility as most vacant units had a kitchen stove with only one -Considering leasing plan for corporations (reviewing key money and rentbalance in line with the demand during the off-season)of October burner and free internet facilities were not introduced-Renovating the kitchen stove with two burners with high needs fromfemale customers- Introducing free internet facility

Until the end -Rent for the retail portion was set low and rent for theof November residential portion was set high compared to competitive-Failed to differentiate the property from competitive
Until the end properties in the surrounding area including properties withof October low rent

-Improving living convenience by enhancing storability such as installing ashelf at the kitchen and bathroom.
-Aiming to attract relatively wealthy groups by conducting leasing
activities in a wide range of areas centering on the terminal station as
well as conducting a campaign limited to brokerage companies with manyrecords of concluding contracts with customers

25Internal Growth

Measures for increasing earnings, usability and property value◆Changing the image of common areas and layout of living room significantly through renovation
Contacting a wide range of customers by creating a new residential space
A-20 S-FORT Kurumamichi
Renovation cases(change in layout and facilities)
Relatively wide room with
4LDK（124.96㎡）
To implement renovation
targeting domestic
corporations and wealthy
individuals after thetermination of short-termlease contract concluded
with a foreign company

Traditional
Japanese stylespecification.
Although there is astorage space, thewidth is narrow andusability is limited.

Sufficient lightcannot bebrought indue topartitions【 Concluding a contract including a penal clause prohibiting short-term
cancellation with a domestic corporation after the renovation 】
Having a stylish impression
by changing the originaltatami to Ryukyu tatami]

Changing a Japanese style room into awestern style room and expanding the storage
space. Responding to the needs from a wide
range of customers by removing the partition
and adopting a more open layout(%)

100.0%

79.8%

26

Internal Growth

Measures for increasing earnings, usability and property value◆Renovation work through the utilization of Samty Group【Orders of construction work placed with Samty Property Management Co., Ltd.】

Intending to receive advice upon implementing large-scale renovationand construction of facilities and secure optimum construction
schedule and quality by cooperating with Samty Property
Management Co., Ltd. As for costs, ordering of repair andmaintenance work at a price reasonable in comparison to othercompanies will become possible.

〜Amount of cost reduction〜(S-FORT Yokkaichi Motomachi)

・Amount estimated by
Samtyʼs PM Company
7,000 thousand yen (adopted)
・Amount estimated by A
7,450 thousand yen (+450
thousand yen)・Amount estimated by B
7,600 thousand yen (+600
thousand yen)

Advice andcollaboration on
appropriate
construction
work andschedule

S-FORT Yokkaichi Motomachi(sounding of exterior wall andrepair work of tiles)

Implementing systematicsurveying and construction
work to maintain the valueof properties

S-FORT Kobe Sannomiya-Kita(renovation of common area)
Brightening the image of the entire common area by
repainting the door of the elevator and replacing thecarpet of the corridor〜Amount of cost reduction〜

・Amount estimated by Samtyʼs PM Company
1,600 thousand yen (adopted)
・Amount estimated by A
1,750 thousand yen (+150 thousand yen)・Amount estimated by B
1,700 thousand yen (+100 thousand yen)◆Intending to strengthen leasing capacity through selection and change of property managementcompany in line with property and location features【S-FORT Maita Koen 】【S-FORT Shin Osaka ravir】

The vacant period tended to be long after the cancellation during the off-season
when there are fewer movements including school entrance and job transfers
but the utilization of cooperation with Samty Group and change of PM company
to Samty Property Management Co., Ltd. based in Osaka and having leasing
records in the neighboring area led to smooth refilling of vacancies even during
the off-season.

Occupancy rate tended to remain low after the cancellation during the off-season, so
the PM company was changed to Haseko Livenet, Inc. with a track record in the
Greater Tokyo area.
Successfully maintained stably high occupancy even during the off-season bycooperating with Haseko Livenet, Inc. and conducting strategic leasing activities.

Change of
PM company

Change of
PM company

100.0

96.0% 100.0

95.0

96.0

90.0
85.0
80.0

100.0%

89.9%
End ofAug.2017

92.0

End ofOct.2017

End ofDec.2017

End ofFeb.2018

End ofApr.2018

End ofJun.2018

88.0

94.2%
End ofAug.2017

End ofOct.2017

End ofDec.2017

End ofFeb.2018

End ofApr.2018

End ofJun.2018

27

Financial Strategy

Financial highlight
Change in Financial status
End of 3rd
period(January 31, 2017)

Capital increase
through third-party
allotment

End of 6th
periodEnd of 4th
periodEnd of 5th
period（July 31, 2017） （January 31, 2018）（As of March 1, 2018)（July 31, 2018）

After issuance of
new investment
units (November 26,
2018)

Total interestbearing debt

28.7
billion yen

28.6
billion yen

28.4
billion yen

44.8
billion yen

44.6
billion yen

48.9
billion yen

Average remaining
borrowing period

2.7 years

2.3 years

2.2 years

3.0 years

2.8 years

2.8 years

Ratio oflong-term debt (1)

98.1%

98.6%

99.3%

99.6%

100.0%

100.0%

long-term debt (2)

98.1%

81.1%

90.5%

94.0%

88.8%

78.3%

Ratio of fixed debt

18.1%

18.2%

18.3%

29.1%

30.5%

30.5%

Total asset
based LTV

51.5%

51.5%

51.4%

51.5%

51.2%

51.0%

(Note) While long-term interest-bearing debt ① includes the current portion of long-term debt, long-term interest-bearing debt ② excludes the current portion of long-term debt.

Status of Maturity ladder(million yen)

Assumed partial early
repayment

8,000

Refinancing

Investment corporation bonds (private）(new)Investment corporation bonds (private）(existing)Borrowings (new)Borrowings (existing)

1,000

6,000

2,500

4,000

5,000

5,000

2,000

0

Refinancing / Early repayment

5,600
3,100

7th
periodJanuary2019

8th
period
July
2019

9th
periodJanuary
2020

4,000

10th
period
July
2020

11th
periodJanuary
2021

5,200

12th
period
July
2021

5,350

13th
periodJanuary
2022

5,350

14th
period
July
2022

1,000
2,500

2,500

15th
periodJanuary2023

16th
period
July
2023

3,000
17th
periodJanuary2024

18thperiod
July
2024

1,500

1,300

19th
periodJanuary2025

20thperiodJuly2025(Note) The total asset based LTV at the time of capital increase through third-party allotment is the forecast, calculated by dividing interest-bearing debt by total assets (the amount obtained byadding the total acquisition price of the 33 properties newly acquired on February 1, 2018 and March 1, 2018 including ancillary expenses and consumption taxes to total assets at the endof 5th fiscal period.) The total asset based LTV after the issuance of new investment units is the forecast, calculated by dividing interest-bearing debt by total assets (the amount obtainedby adding the total acquisition price of the 11 properties scheduled to be acquired on August 28, 2018 and November 26, 2018, including ancillary expenses and consumption taxes to thetotal assets at the end of 6th fiscal period.)28

Financial Strategy

Financial highlight◆Status of Interest-Bearing Debt
(As of November 26, 2018)
Financial institution
City
banks

Major
banks

Regio
nal
banks

Insurancecompany

Interest-bearingdebt(As of July 31, 2018)
Ratio

SMBC

7,090

14.5%

Resona Bank

3,800

7.8%

Mizuho Bank

1,000

2.0%

Aozora Bank

4,700

9.6%

Shinsei Bank

4,700

9.6%

The Bank of Fukuoka

7,410

15.2%

The Kagawa Bank

3,000

6.1%

Shinwa Bank

2,600

5.3%

The Tokyo Star Bank

1,700

3.5%

Kumamoto Bank

1,600

3.3%

The Higo Bank

1,500

3.1%

The Bank of Saga

1,000

2.0%

The Hyakugo Bank

1,000

2.0%

The Mie Bank

700

1.4%

Hiroshima Bank

600

1.2%

The Tochigi Bank

600

1.2%

Shizuoka Bank

500

1.0%

Oita Bank

500

1.0%

The Minato Bank

500

1.0%

Chiba Bank

300

0.6%

The Kagoshima Bank

300

0.6%

The Ashikaga Bank

200

0.4%

Fukoku Mutual Life

1,100

2.2%

The Dai-ichi Life

500

1.0%

2,000

4.1%

Investment corporation
bonds（Note)

・New lenders are highlighted in light red.

(As of November 26, 2018)

Regional banks
17 banks(51.1％)

Regional banks
17 banks(49.1％)■Change in floating borrowing spread(Spread：%)Investment corporation bonds (private)[First][Second]
Total issue
amount1 bilion yen 1 billion yen
Maturity
4 years
5 years
Underwriter DBJ Securities Co., Ltd.

Maturity

Spread0.85%

・Capital increase through third-party
allotment (February 2018)
・Expansion of asset size
(from 51.5 billion yen to 81.5 billion yen)・Acquisition of rating of A- (stable) from
JCR (March 2018)(Maturity：year)
6.0

5.5

0.80%

0.80%

0.80%

Extension

0.75%

5.0

0.70%

4.5

0.65%

①Upon listing (July 2015)
New borrowing（1-C）
4,000 million yen②January 2018
Refinancing (6-A)
2,350 million yen

0.70%

0.70%

③June 2018
Refinancing (8-A)
2,100 million yen④August 2018
New borrowing (9-A)
2,160 million yen

4.0

29

Appraisal Value Status
Summary of Appraisal Value

Change in Cap Rate

Appraial value(million yen)

5th
period6th
periodBook value
Unrealized
end of 6th
gain
period(million yen)increase/decrease

5.9(million yen)

49 properties acquired in the first and fifth periods
Major regional cities

38,36338,461

98

35,521

2,940

Other regional cities

8,431

8,461

30

7,966

495

Greater Tokyo area

9,864

9,928

64

9,180

748

56,65856,850192

52,6684,182

Sub Total（％）-

11,454-

11,529-75

Other regional cities-

11,356-

11,620-264

Greater Tokyo area

-

8,316

-

8,330

-14

Sub Total-

31,126-

31,480-354

56,65887,976-

84,147

3,829

Total

5.5

5.4
5.3

5.3

5.1

5.3

5.2

5.2

5.0

5.0

5.1

4.9
5.0

4.9

5.0
4.9

No. of properties
4.7

Compared to end of 5th period
Change inAppraisal Value

5.3
5.2

Appraisal Value Status and Cap Rate Status■ Change in appraisal value and Cap Rate at the 6th period

5.8

5.7

33 properties associated with the third-party allotment
Major regional cities

5.8

4.8

4.8

Upward200Unchanged29

29

Downward

0

20

4.5

4.9

4.8
4.7

Change in
Cap Rate

4.9

4.7

4.7

End of 1st End of 2nd End of 3rd End of 4th End of 5th End of 6th
fiscalfiscalfiscalfiscalfiscalfiscalperiodperiodperiodperiodperiodperiodMajor regional cities

Other regional cities

Greater Tokyo area

Ovarall(Note 1) Cap Rate is rounded off to one decimal place.
(Note 2) Cap Rate from the end of the 1st period to the end of the 2nd period is the figure in the appraisal report for the 29 properties. Cap Rate from the end of the 3rd period to the end of
the 6th period is the figure in the appraisal report for the 49 properties including the 20 properties acquired in the 3rd period. 。

30

４. Future Growth Strategy

Growth Strategy・Managed Target
1

External
growth strategy

2
3
4
1

Internal
growth strategy

2Acquire properties by taking advantage of the proprietary channels of the asset
management company
Implement the differentiated portfolio development policy
Enhance the asset value and rate of return through reviewing existing facilities
and other measures
Reduce operating costs

4

Reinforce property competitiveness and enhance usability of residents byintroducing new facilities/equipment
Stabilize earnings by utilizing sublease agreement

1

Lengthen borrowing periods and reduce cost of debt

3

Financialstrategy

Expand the asset size and enhance the quality of the portfolio through continuous
acquisitions of the “S-RESIDENCE” properties developed by the sponsor
Acquire properties through sponsor support – Utilize the warehousing function

2

Expand the bank formation

3

Improvement of credit rating◆Change in Asset size・Management Target(Based on acquisition price)
150(billion yen)

100

50

0

Acquired credit rating from JCR
A- (Stable)

30.5
Assets at IPO(28 properties)

0.4

30.9

20.5

Asset acquired in Assets at end of 1st Assets acquired
1st Period
Periodthrough PO in Aug.
(S-FORT(29 properties)
2016
Gakuenmae)(20 properties)

51.5

29.9

81.5

Mar. 2018
Assets at end of Feb. to Mar.2018
After capital
4th Period
Capital increase(49 properties) through third-party increase throughthird-party
allotment
allotment
Acquired properties(82 properties)(33 properties)

Aim to achieve the asset sizeof 100 billion yen over the
medium term

8.1

89.6

Assts acquired
After capitalthrough PO in Aug. increase throughand Nov. 2018 (11 public offering ofproperties)
7th fiscal period（93 properties）

100

32

External Growth

Investment policy
Secured stable earnings by continuously investing in properties close to medical institutions or
educational facilities such as universities and by adopting the fixed rent master lease (ML).
Ownedproperties

New properties
acquired on Aug.2018

Close to medical
institutions

Close to universities andmedical institutions

Close touniversities

New properties acquired
through TPA

Fixed-rent ML

Major regional cities

S-FORT
Katahira

S-FORT
Gakuenmae

S-FORT
Toyohira
SanjyoS-FORT
Kamiyashiro

S-FORT
FukuokaKencho Mae

S-FORT
Hokudai mae

S-FORT
Chion-inmae

S-FORT
Tsurumai cube

S-FORT
Tsurumai reale

S-FORT
Kitamaruyama

S-FORT
Tsurumicho

S-FORT
Aoba Kamisugi

Other regional cities

Fixed-rent ML

Fixed-rent ML

S-FORT
Saga Honjo

S-FORT
Saga Idaimae

S-FORT
Mie Daigakumae

S-FORT
Nishinomiya
Uegahara

S-FORT
Suizenji

S-FORT
Kumadaibyoinmae

S-FORT
Rokuban-cho
S-RESIDENCE
Kobe Motomachi

Fixed-rent ML

S-FORT
Niigata Honcho

S-FORT
Oita Ekimae

S-FORT
Motohama

S-FORT
Kumamoto
Senba

S-FORT
Takasagomachi

S-FORT
Nishinomiya

Fixed-rent ML

GreaterTokyo area

S-FORT
Ichikawa

S-FORT
Hoya

S-FORT
Tamagawa
Gakuen mae

S-FORT
Kashiwa

S-FORT
Noborito

S-FORT
Sagamiyara

S-RESIDENCE
Yokosuka Chuo

33

External Growth

External growth strategy
Status of pipeline
Property NameA
【Developed】

A【Owned・Warehousing】

Location

No. of units(Scheduled)Completion date

Area

①

S-RESIDENCE Higashi-ku Aoi 2cho-me

Higashi-ku, Nagoya

95 units

2018

Major regional cities②

S-RESIDENCE Kita-ku NishiTemma 3cho-me

Kita-ku, Osaka City

180 units

2019

Major regional cities③

S-RESIDENCE Nishi-ku MinamiHorie 3cho-me

Nishi-ku, Osaka

55 units

2019

Major regional cities④

S-RESIDENCE Kita-ku Shiga Hondouri

Kita-ku, Nagoya

88 units

2019

Major regional cities⑤

S-RESIDENCE Chigusa-ku Uchiyama 3 cho-me

Chigusa-ku, Nagoya

44 units

2019

Major regional cities⑥

S-RESIDENCE Hongo 3 cho-me

Meito-ku, Nagoya

77 units

2019

Major regional cities⑦

S-RESIDENCE Kita-ku Shiga Hondori 1cho-me, Shinmeicho

Kita-ku, Nagoya

108 units

2019

Major regional cities⑧

S-RESIDENCE Asahigaoka

Chuo-ku, Sapporo

36 units

2019

Major regional cities⑨

S-RESIDENCE Kita-ku Kurokawa Hondori 2cho-me

Kita-ku, Nagoya

105 units

2020

Major regional cities⑩

S-RESIDENCE Esaka-cho 1cho-me II

Suita-shi,Osaka

153 units

2019

Other regional cities⑪

S-RESIDENCE Minamiyawata 5cho-me

Ichikawa-shi, Chiba

100 units

2019

Greater Tokyo area⑫

Samty Noborimachi

Naka-ku, Hiroshima

60 units

2008

Major regional cities⑬

Samty Ohori Koen

Chuo-ku, Fukuoka

50 units

1997

Major regional cities

Total 13 properites

1,151 units

Examples of properties, developed/managemed by main sponsor■S-PERIA
Hotel Hakata【Hotel】
Hakata-ku,Fukuoka
Bridge in cooperation■Center Hotel Tokyo ■Center Hotel Osakawith Daiwa Securities
Nihonbashi, Chuo-ku, Kitahama, Chuo-ku,
Group Inc.
Osaka
Tokyo

【Rental Properties】■Samty■S-PERIA■Kagoshima City,■Naka-ku, Nagoya ■Nishi-ku,
Hotel Nagasaki Nihonbashi
SapporoKagoshima
No.
ofunits：
NakasuPJ
NagasakiNo.
ofunits：
No.
of units：64 units
56
units
Chuo-ku, Tokyo
26 units(Note) Acquisition of any properties described on this page has not been decided as of the date of this document.

34

Internal Growth

Financial Strategy

Initiatives on Sustainability
Obtainment of DBJ Green Building Certification【Initiatives on environmental and social awareness】
In order to diversify fund procurement methods, Samty Residential and Samty Asset Management aim toproactively obtain certifications given to real estate properties with high environmental and social awarenesscentering on the S-RESIDENCE series, the sponsor-developed properties we own, in particular, as well as forother properties we will own newly.
As part of such effort, we obtained DBJ Green Building Certification in three properties among those we own.
The DBJ Green Building Certification Program was launched by the Development Bank of Japan (DBJ) in April,2011 for the purpose of supporting real estate properties with high environmental and social awareness(Green Building).

■ A-11 S-FORT Nakajima Koen
1-13-139, Minami Hachijo Nishi,
Chuo-ku, Sapporo

Building with excellent
environmental
and social awareness■ A-31 S-FORT Tsurumai reale
2-9-3 Tsurumai,Showa-ku, Nagoya-shi, Aichi
Building with highenvironmental
and social awareness■ B-05 S-RESIDENCE Esaka

12-31 Horoshiba-cho, Suita-shi, Osaka
Building with highenvironmental
and social awareness35

Financial Strategy

Financial Highlight
Basic Policy
Equity Finance

The issuance of new investment units will be determined 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.
LTV levels will generally be kept between 45% and 55%, while the ceiling will be set at 60%.

Future Action Plans
Develop new banking relation shipincluding regional banks

Diversify the source of financing acrossJapan as well as geographicaldiversification of assets

Extend remaining borrowing period withconsideration given to costs

Diversify repayment dates

Fix interest rates

Improvement of credit rating36

５. Operating Results and Distribution Information

Management Forecast of the 6th and 7th Fiscal Periods(million yen)

Operating revenue
Operating income
Anonymous partnership revenue
Operating expenses
Real estate rental expenses

7th fiscal period

Difference

6th fiscal period

Forecast

between 6th FP(July 31, 2018)(January 31,

results and 7th2019)

forecast

8th fiscal period
Forecast(July 31, 2019)

2,888

3,079

191

3,167

2,875

3,079

203

3,167

12

-

-12

-

1,483

1,614

130

1,762

1,200

1,212

12

1,343

Miscellaneous rental expenses

438

420

-17

454

Taxes and dues

113

113

0

198

Depreciation

647

677

30

689

Real Estate rental income

1,687

1,866

178

1,824

Other operating expenses

Difference■ Calculation period
The 7th fiscal period :August 1, 2018 to January 31, 2019
forecast
The 8th fiscal period :88
February 1, 2019 to July 31, 201988 ■ Asset (No. of acquired properties
as of the date of this document）
The 7th fiscal period：93 properties
The 8th fiscal period : 93 properties
147■ Period average month-end occupancy rate
130
The 7th fiscal period：96.3%
33
The 8th fiscal period : 96.4%
84 ■Balance of interest-bearing debt at end of period
The 7th fiscal period：48,900 million yen
11
The 8th fiscal period：48,900 million yen-42 ■ No. of outstanding units(No. of investment units issued and outstanding17
as of the date of this document)
15
The 7th fiscal period：504,100 units
The 8th fiscal period : 504,100 units
2■ Capital expenditures (planned amount)-59
The 7th fiscal period：99 million yen
The 8th fiscal period : 99 million yen
37

between 7th FP

forecast and 8th

283

402

118

419

Asset management fees

127

225

97

240

Other expenses

155

176

21

178

1,404

1,464

59

1,404

-392

-329

63

-291

1,011

1,135

123

1,113

-21

0

1

0

1

0

Net income

1,010

1,134

123

1,112

Distribution per unit

2,681

2,700

19

2,685

2,213

2,250

37

2,207

468

450

-18

478

Operating income
Non-operating income and loss
Ordinary income
Corporate tax, etc.

Distribution per unit
(Not including distribution in excess ofearnings)
Distribution in excess of earning per unit

(Note) Management forecasts for the 7th and 8th fiscal periods are the figures disclosed in the“Summary of Financial Results for Fiscal Period Ended July 2018” announced on September 14, 2018.

Assumptions for Management Forecast of the 7th
and 8th Fiscal Periods

Difference factors between 6th FP
results and 7th forecast■ Real estate rental revenue
・Increase in revenue due to the increase in rent and(yen) common area expenses and key money during
peak season in addition to the increase in the number-15
of properties+191 million yen-21■Real estate rental expenses
・Increase in management service fee and repair
expenses due to the increase in the number ofproperties+15 million yen
28
・Decrease in restoration expenses andleasing promotion expenses during the off-season-27 million yen■ Non-operating income and loss
・Decrease in borrowing related expenses due toborrowings, etc. related to the acquisition of
new properties+63 million yen

-43

38

Outlook of Distribution◆Continuing to pay stable distribution every fiscal period since listing■Distribution policy
Distribution withpayout ratio aiming
for around 70%

Aim to maintain/improve distribution level
Initial distribution

distribution in excessof earnings)

(yen)

2,618

592

Distribution in excess
利益超過分配⾦
of earnings per unit

distribution in excessof earnings)

2,670

2,675

507

501

484

2,670

2,625

2,700

2,685

468

450

478

2,250

2,207

2,681

2,670

2,138

2,169

2,191

2,213

実績

予想
実績
第3期分配⾦予想
実績
第4期分配⾦

第5期分配⾦予想
実績

予測 実績
第6期分配⾦予測
第7期分配⾦予測
第8期分配⾦

第2期

第3期（平成29年1⽉期）

第4期（平成29年7⽉期）（平成30年1⽉期）
第5期（2018年7⽉期）
第6期

第7期（2019年1⽉期）

第8期（2019年1⽉期）（確定分配⾦）（確定分配⾦）（確定分配⾦）（確定分配⾦）（予想分配⾦） （予想分配⾦）

2,026

予想

利益分配⾦
(Not including

2,645

2,600

2,478

Distribution per unit

当初予想分配⾦
forecast (including

39

Distribution Policy (1) Due to the characteristics of the portfolio, the ratio of depreciation to property acquisition price tends to be large, thus
Samty Residential aims to increase fund efficiency through optimal fund allocation and improvement of unitholder value overthe medium to long term.
 In regards to the 5th and the 6th Fiscal Period, Samty Residential determined that it is appropriate to conduct distributions inexcess of earnings in consideration of the market environment and financial conditions.
 Distribution amounts 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 capital and such, in
accordance with the situations of the time.

Cash will be allocated based on a comprehensive review of the external economic environment, real estatemarket 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[1st to 6th fiscal periods]
Distribution in excess of earnings per unit: 859 million yen

Reinforcement of the financial base by reducing
interest-bearing liabilities, etc.

[1st to 6th fiscal periods] Repaid amount: 18,912 million yen

Investment that should help enhance
the portfolioʼs profitability enhance[1st to 6th fiscal periods] Investment amount for Bridgefunds: 270 million yen

40Distribution Policy (2)◆Distributions in Excess of Earnings

Samty Residential may decide the amount of each fiscal period's cash distributions in excess of earnings, based on the
payout ratio as our management result. 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 to avoid undermining unitholder value.
■Conceptual diagram of distributions in excess of earnings
Expensesrelated torent business,sales, generalandadministrativ
e expenses,
non-operating
expenses, etc.

(1) Determination of distributions
With a view to enhancing unitholder value
over the medium to long term, distributions inexcess of earnings are authorized when
Samty Residentialʼs portfolio meets the below
conditions.

Total
appraisalvalue

CAPEX for thefollowing fiscal
period(2) Determination of amountAmount of distributions (including distributions inexcess of earnings) are determined for each fiscal
period based on future capital expenditures, capitaldemand, etc.

Rentalrevenue

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

Total adjusted
book value(Note)Net income

Distribution
in excess ofearnings

Distribute payout ratio
aiming for 70%

Distribution(profits)

However, distributions in excessof earnings will be up to 35% ofdepreciation

Note: Excluding amount equivalent to incidental expenses upon acquisition◆Outlook of cash flow

■ 8th fiscal period (July 2019)■ 7th fiscal period (January 2019)
2,000
1,500

FFO
1,812

Capex
99

AFFO
1,712

Depreciation
677

0Distributions
1,134

Net income
1,134

FFO

351

FFO
1,802

CAPEX

AFFO

Total cash
distribution

Capex
99

AFFO
1,703

2,000
1,500

1,000
500

Distributions inexcess of earnings
226

Cash available for
use

0

349

Depreciation
689

1,000
500

Distributions inexcess of earnings
240

Distributions
1,112

Net income
1,112

FFO

CAPEX

AFFO

Total cash
distribution

Cash available foruse

41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 inproportion to the acquisition 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 is believed to remain going
forward.

■Ex.: Comparison between residential properties in regions andin Greater Tokyo area
(Assuming depreciation period as 50 years, NOI yield as 6.0%
and 5.0% for regions and Greater Tokyo area respectively.
These figures are examples and do not represent any specificproperty 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％

1[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％

2

Portfolio composition withaverage building age of 8.6
years

Stable supply of newly
developed properties from thesponsor

Ratio of CAPEX to totalacquisition price ofproperties is expected toremain at a low level*Depreciation rate is the ratio of depreciation to the acquisition price of properties.

42

６. Appendix

Characteristics of Regional Residence Investments (1)Household growth rate (Year 2000 = 100%)＋24.5%＋21.2%＋26.2%＋21.6%＋20.4%＋14.5%＋19.8%＋17.1%＋17.9%＋32.1%

Growth rate from 2000 to 2017

Household growth rate of major
regional cities is comparable to thatof Greater Tokyo Area.
Growth rates of Sapporo City andFukuoka City surpass that of Tokyo
23 Wards.
Source: Prepared by Sumitomo Mitsui Trust Research Institute based on“Basic Resident Registers,” Ministry of Internal Affairs and Communications

Number of New Housing Starts

Net Migration(%)(Year 2000＝100%）(Year)

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

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 Office45

Overview of the Samty Group
Samty Co., Ltd.

Business Model of Samty Group

ListingFirst Section of the Tokyo Stock
Exchange (Securities code: 3244)

Established

December 1, 1982

Location of head office
Capital4-3-24, Nishi-Nakajima,
Yodogawa-ku, Osaka City
8.4 billion yen(as of the end of May 2018)
Real estate businessBusiness description

Property leasing business

Overseas
investment

Domestic market
Purchase

Overseas market Sales ofdeveloped
properties

Provide development properties

Samty Group

Condominiums
for investment

Condominium
sales companies

Number of employees

Net sales 46,317 million yennd(2 quarter, November 2018)
Ordinary income 7,908 million yennd(2 quarter, November 2018)
107 (as of the end of May 2018)※195 on a consolidated basis

沿⾰

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 and conducted
real estate securitization that was thefirst such operation approved by the
Kinki Local Finance Bureau

Jun.
2012
Nov.
2012
May
2015

Mar.
2005

Launched the S-Residence series ofrental condominiums for real estate
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 Tokyo Branch Office
Established Samty Kanri Co., Ltd.
that is engaged in property
management business

Samty Residential
Investment
Corporation

Leasing of
owned
properties

Recovery of development capital

Rental apartment/
Office buildings
Commercial facilities

Entrust asset and property
management service

Samtyʼs businessHistory and Business
Dec.
1982

Tenants

Property and operation
management support

Integration of
investor andgroup earnings
through sponsor
support contract

Real estate planning and design, etc.
Operating results(consolidated basis)

Income properties
Land for development

Established Fukuoka Branch OfficeAcquired shares in Samty AssetManagement Co., Ltd. to make ita wholly-owned subsidiary
Established Sapporo Branch Office
Moved up to the First Section of theTokyo Stock Exchange.
Established Nagoya Branch Office

Real estatebusiness

Planning, development and sales of for-sale condominiums
for families and condominiums for investment Planning,development, regeneration and sales of income properties,
etc. Operation, management and investment in real estate
investment funds

Property leasing
business

Leasing and management of condominiums,
office buildings, etc.

Other business

Hotel operation
Management of for-sale condominiums
Construction and reform
Planning of support system concerning medical care

Shiba Inu Maru
“Stand by You” Edition
Samtyʼs TV commercial
now beingbroadcasted!!

46

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

Washstand with modern taste

 “S-RESIDENCE” is a high quality, rental condominium brand developed by
Samty Group since 2005.

Double lock with dimple key
for high security

 “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
Shin Osaka EkimaeHigh-classelevator hall

Serene and massive
entrance hall

Bathroom heater/dryer/
ventilation system
Hands-freeassuring comfort whenintercomtaking a bath in winterwith a monitor
or drying clothes on rainy days

Bright and stylish
kitchen and bathroom

Safe flat flooringby eliminating difference inlevel on the floor to prevent trips
Flat-designed floors

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

47

Portfolio List (1) Major Regional Cities
List of acquired properties(Number of acquired properties as of the date of this document
Property

Property Name

No

Location■ Properties newly acquired on February 1, 2018 and March 1, 2018
■ Properties newly acquired (or scheduled to be acquired)） on Auguest 28, 2018 and November 26, 2018
Type

Acquisition Price(million yen)Appraisal Value

Appraisal

at End of Period

NOI yield(million yen)(%)

Number of
rentable units

Major regional cities
A-01

S-FORT Shin Osaka ravir

Yodogawa-ku, Osaka

Single / Compact

635

685

5.3

49

A-02

S-FORT Sanno

Nakagawa-ku, Nagoya

Single / Compact

2,890

3,270

6.1

230

A-03

S-FORT Fujigaoka

Meitou-ku, Nagoya

Single

750

830

6.0

80

A-04

S-FORT Chikushi Dori

Hakata-ku, Fukuoka

Compact

1,170

1,220

5.5

90
104

A-05

S-FORT Fukuoka Kencho Mae

Hakata-ku, Fukuoka

Single

979

1,080

5.7

A-06

S-FORT Takamiya

Minami-ku, Fukuoka

Single / Commercial

794

830

5.4

82

A-07

S-FORT Tsutsujigaoka Koen

Miyagino-ku, Sendai

Single / Compact / Family

1,340

1,410

5.8

94

A-08

S-RESIDENCE Namba Briller

Naniwa-ku, Osaka

Single

2,020

2,360

5.3

154

A-09

S-FORT Tsurumai marks

Naka-ku, Nagoya

Family

1,020

1,230

5.8

42

A-10

S-FORT Rokuban-cho

Atsuta-ku, Nagoya

Single / Commercial

722

762

5.3

56

A-11

S-FORT Nakajima Koen

Chuo-ku, Sapporo

Compact / Family

1,590

1,660

5.7

75

A-12

S-FORT Hokudai Mae

Kita-ku, Sapporo

Compact / Commercial

A-13

S-RESIDENCE Kobe Isogamidori

Chuo-ku, Kobe

Single / Compact

A-14

S-FORT Kyoto Nishioji

Shimogyo-ku, Kyoto

Single / Commercial

A-15

S-FORT Katahira

Aoba-ku, Sendai

Single / Compact

A-16

S-FORT Gakuenmae

Toyohira-ku, Sapporo

Single / Compact

A-17

S-RESIDENCE Shin Osaka Ekimae

Higashi Yodogawa-ku, Osaka

Single / Compact

A-18

S-FORT Aoi 1-Chome

Higashi-ku, Nagoya

Compact

A-19

S-FORT Aoi

Higashi-ku, Nagoya

Family

A-20

S-FORT Kurumamichi

Higashi-ku, Nagoya

A-21

S-FORT Kamiotai

A-22

S-FORT Tsurumai arts

A-23

S-FORT Tsurumai cube

A-24
A-25
A-26

690

759

5.7

59

2,470

2,810

5.3

166

745

825

5.9

71

2,330

2,590

5.8

191

462

487

5.8

48

2,489

2,760

5.1

167

1,080

1,130

5.2

54

870

992

5.6

28

Family

400

432

5.8

19

Nishi-ku, Nagoya

Family

720

744

5.6

40

Naka-ku, Nagoya

Family

680

805

5.8

28

Naka-ku, Nagoya

Compact / Family

570

673

5.8

32

S-FORT Fukuoka Higashi

Hakata-ku, Fukuoka

Compact

1,900

2,040

5.3

135

S-RESIDENCE Kobe Motomachi

Chuo-ku, Kobe

Single / Compact

1,200

1,390

5.6

81

S-FORT Kobe Kaguracho

Nagata-ku, Kobe

Single

1,858

2,180

6.1

168

A-27

S-FORT Nijo-jo mae

Nakagyo-ku, Kyoto

Single / Compact / Family

812

872

5.2

47

A-28

S-FORT Chion-in mae

Higashiyamaku, Kyoto

Compact / Family / Commerci

500

525

5.0

18

A-29

S-FORT Miyamachi

Aoba-ku, Sendai

Single / Compact

1,085

1,110

5.4

91

(Note) Appraisal value is based on the figures as of the end of July 2018 for the existing 82 properties
and the figures as of June 1, 2018 for the 11 properties newly acquired.

48

Portfolio List (2) Major Regional Cities
List of acquired properties■ Properties newly acquired on February 1, 2018 and March 1, 2018

(Number of acquired properties as of the date of this document ） ■ Properties newly acquired (or scheduled to be acquired)on Auguest 28, 2018 and November 26, 2018

Property
No

Property Name

LocationType

Acquisition Price(million yen)Appraisal Value

Appraisal

at End of Period

NOI yield(million yen)(%)

Number of
rentable units

Major regional cities■

A-30

S-RESIDENCE Midoribashi Ekimae

Higashi-ku, Osaka

Single

1,846

1,990

5.0

148

■

A-31

S-FORT Tsurumai reale

Showa-ku, Nagoya

Compact / Family

1,571

1,660

5.0

56

■

A-32

S-FORT Osu Kannon

Naka-ku, Nagoya

Single / Compact

1,147

1,270

5.6

84

■

A-33

S-FORT Kita-Sanno

Nakagawa-ku, Nagoya

Compact

841

844

4.8

36

■

A-34

S-FORT Aratamabashi

Minami-ku, Nagoya

Compact

449

455

5.6

29

■

A-35

S-FORT Toyohira Sanjyo

Toyohira-ku, Sapporo

Compact

762

787

5.9

63

■

A-36

S-FORT Kitamaruyama

Chuo-ku, Sapporo

Compact

425

431

5.5

49

■

A-37

S-FORT Hakata-Higashi I

Hakata-ku, Fukuoka

Single / Compact

389

392

5.3

35

■

A-38

S-FORT Hakata-Higashi II

Hakata-ku, Fukuoka

Single / Compact

382

386

5.3

35

■

A-39

S-FORT Kobe Sannomiya-Kita

Chuo-ku, Kobe

Single

515

519

5.1

45

■

A-40

S-FORT Nakahirodori

Nishi-ku, Hiroshima

Single

885

897

5.3

74

■

A-41

S-FORT Tsurumicho

Naka-ku, HiroshimaCompact / Family

820

823

5.0

51

■

A-42

S-FORT Aoba Kamisugi

Aoba-ku, Sendai-shi

Compact

918

1,000

5.7

66
90

■

A-43

S-RESIDECE Shin Osaka Ridente

odogawa-ku, Osaka-shi

Single

1,338

1,390

4.6

■

A-44

S-FORT Fukushima La Luna

Kita-ku, Osaka-shi

Single / Compact

896

923

4.7

48

■

A-45

S-FORT Fukushima Libre

Fukushima-ku, Osaka-shi

Single

538

539

4.7

36

■

A-46

S-FORT Kamiyashiro

Meito-ku, Nagoya-shi

Single

429

430

5.7

42

■

A-47

S-RESIDENCE Miyanomori

Chuo-ku, Sapporo-shi

Family

660

679

5.4

22

■

A-48

S-FORT Higashi-Sapporo Nordo

Shiraishi-ku, Sapporo-shi

Compact

303

304

5.7

24

(Note) Appraisal value is based on the figures as of the end of July 2018 for the existing 82 properties
and the figures as of June 1, 2018 for the 11 properties newly acquired.

49

Portfolio List (3) Other Regional Cities
List of acquired properties■ Properties newly acquired on February 1, 2018 and March 1, 2018

(Number of acquired properties as of the date of this document ） ■ Properties newly acquired (or scheduled to be acquired)on Auguest 28, 2018 and November 26, 2018

Property
No

Property Name

LocationType

Acquisition Price(million yen)Appraisal Value

Appraisal

at End of Period

NOI yield(million yen)(%)

Number of
rentable units

Other regional cities
B-01

S-FORT Shizuoka HondoriAoi-ku, Shizuoka

Compact

B-02

S-FORT Suminodo

Daitou-shi, Osaka

Single / Compact

297

311

5.9

28

1,420

1,590

5.9

126

B-03

S-FORT Yokkaichi motomachi

Yokkaichi-shi, Mie

Compact

480

542

6.7

54

B-04

S-FORT Suzuka

Suzuka-shi, Mie

Compact

580

621

6.9

69

B-05

S-RESIDENCE Esaka

Suita-shi, Osaka

Single / Compact

2,323

2,550

5.0

138

B-06

S-FORT Utsunomiya

Utsunomiya-shi, Tochigi

Compact

612

643

6.0

52

B-07

S-FORT Yokkaichi Nishishinchi

Yokkaichi-shi, Mie

Compact / Family

630

735

6.7

60

B-08

S-FORT Saga Honjo

Saga-shi, Saga

Compact / Office

1,050

1,070

6.2

127

375

399

6.6

46

1,412

1,500

5.3

102

B-09

S-FORT Saga Idaimae

Saga-shi, Saga

Compact■

B-10

S-FORT Nishinomiya

Nishinomiya-shi, Hyogo

Single / Compact

■

B-11

S-FORT Nishinomiya Uegahara

Nishinomiya-shi, Hyogo

Single

789

805

5.1

62

■

B-12

S-FORT Mito Chuo

Mito-shi, Ibaraki

Family

1,807

1,820

5.5

80

■

B-13

S-FORT Tsu Shinmachi

Tsu-shi, Mie

Compact

767

836

6.2

69

■

B-14

S-FORT Mie Daigaku-mae

Tsu-shi, Mie

Compact

599

645

6.2

62

■

B-15

S-FORT Takasagomachi

Oita-shi, Oita

Single / Compact / Family

1,015

1,020

5.7

92

■

B-16

S-FORT Oita Ekimae

Oita-shi, Oita

Single / Compact

904

911

5.7

91

■

B-17

S-FORT Oita Otemachi

Oita-shi, Oita

Single

277

289

5.6

35

■

B-18

S-FORT Suizenji

Chuo-ku, Kumamoto

Single / Compact

1,332

1,340

5.6

119

■

B-19

S-FORT Kumadaibyoin-mae

Chuo-ku, Kumamoto

Compact

1,125

1,150

5.6

99

■

B-20

S-FORT Kumamoto Senba

Chuo-ku, Kumamoto

Single / Compact / Family

1,010

1,040

5.9

91

■

B-21

S-FORT Esaka Tarumicho

Sita-shi, Osaka

Single

774

788

5.0

48

■

B-22

S-FORT Niigata Honcho

Chuo-ku, Niigata

Compact

960

967

5.6

83

■

B-23

S-FORT Motohama

Naka-ku, Hamamatsu

Single

239

240

6.0

34

(Note) Appraisal value is based on the figures as of the end of July 2018 for the existing 82 properties
and the figures as of June 1, 2018 for the 11 properties newly acquired.

50

Portfolio List (4) Greater Tokyo Area
List of acquired properties(Number of acquired properties as of the date of this document ）Property

Property Name

No

Location■ Properties newly acquired on February 1, 2018 and March 1, 2018
■ Properties newly acquired (or scheduled to be acquired)on Auguest 28, 2018 and November 26, 2018

Type

Acquisition Price(million yen)Appraisal Value

Appraisal

at End of Period

NOI yield(million yen)(%)

Number of
rentable units

Greater Tokyo area

Total

C-01

S-FORT Maita Koen

Minami-ku, Yokohama

Single / Compact

987

1,070

5.2

70

C-02

S-FORT Nihombashi Hakozaki

Chuo-ku, Tokyo

Single / Compact

925

1,040

4.7

36

C-03

S-FORT Itabashi Shimura

Itabashi-ku, Tokyo

Compact

645

688

4.9

32

C-04

S-FORT Shiomi

Koto-ku, Tokyo

Single

866

1,030

5.3

52

C-05

S-FORT Noborito

Tama-ku, Kawasaki

Single

666

695

4.9

40

C-06

S-FORT Shonan Hiratsuka

Hiratsuka-shi, Kanagawa

Single

818

975

5.8

66

C-07

S-FORT Nishifunabashi

Funabashi-shi, Chiba

Single / Compact

732

781

5.2

47

C-08

S-FORT Maihama

Urayasu-shi, Chiba

Single

1,130

1,220

5.3

83

C-09

S-FORT Ichikawa

Ichikawa-shi, Chiba

Single / Commercial

809

869

5.2

51

C-10

S-RESIDENCE Yokosuka Chuo

Yokosuka-shi, Kanagawa

Single / Nursery

850

937

6.0

25

C-11

S-FORT Sagamihara

Sagamihara-shi, Kanagawa

Single

585

623

5.2

53

■

C-12

S-FORT Hoya

Nishitokyo-shi, Tokyo

Single

645

742

5.7

60

■

C-13

S-FORT Tamagawagakuen-mae

Machida-shi, Tokyo

Single

587

605

4.9

45

■

C-14

S-FORT Tsurukawa

Machida-shi, Tokyo

Family

520

533

5.1

30

■

C-15

S-RESIDENCE Yokohama Tanmachi

Kanagawa-ku, Yokohama-shi

Single

627

701

5.0

36

■

C-16

S-FORT Chigasaki

Chigasaki-shi, Kanagawa

Single / Compact

1,137

1,150

4.8

36

■

C-17

S-FORT Kawaguchi Namiki

Kawaguchi-shi, Saitama

Single

1,110

1,140

4.7

70

■

C-18

S-FORT Todakoen

Toda-shi, Saitama

Single

914

953

4.8

62

■

C-19

S-FORT Funabashi Tsukada

Funabashi-shi, Chiba

Compact

1,900

1,940

5.0

117

■

C-20

S-FORT Kashiwa

Kashiwa-shi, Chiba

Single / Compact

536

552

5.2

37

■

C-21

S-FORT Fujimidai

Nakano-ku, Tokyo

Single / Compact

1,150

1,270

5.1

61

■

C-22

S-RESIDENCE Matsudo

Matsudo-shi, Chiba

Single

840

850

4.6

52

89,642

96,3565.4

6,460

93 properties(Note) Appraisal value is based on the figures as of the end of July 2018 for the existing 82 properties
and the figures as of June 1, 2018 for the 11 properties newly acquired.
C-22 S-RESIDENCE Matsudo is scheduled to be acquire on November 26, 2018.

51

Income and Expenditure by Property (1)Fiscal Period Ending July 2018 (As of July 31, 2018)（１）Area category

Major regional cities（２）Property No.

A-01（３）Property name（４）Acquisition date
（５）
Price
information（６）
Leasing
information

Acquisition price(million yen)

Composition rate

A-06

A-07
S-FORT

S-FORT

S-FORT

S-FORT

S-FORT Chikushi

S-FORT Fukuoka

S-FORT

Shin Osaka ravir

Sanno

Fujigaoka

Dori

Kencho Mae

Takamiya

Apr-15, 2015

Apr-15, 2015

Apr-15, 2015

May-01, 2015

Apr-15, 2015

May-01, 2015

635

2,890

750

1,170

979

Tsutsujigaoka
Koen

794

Apr-15, 2015
1,340

0.8

3.5

0.9

1.4

1.2

1.0

1.6

2,905

737

1,172

990

792

1,358

Total rentable area(㎡)

1,290.84

8,138.40

1,960.00

3,706.56

2,566.72

2,105.13

3,609.49

Leased area(㎡)

1,238.56

7,416.64

1,788.50

3,583.84

2,492.68

1,931.25

3,382.50

Occupancy rate

(%)

95.9

91.1

91.3

96.7

97.1

91.7

93.7

181

181

181

181

181

181

181

20,570112,671

29,97144,44835,87728,412

51,726

Real estate rental revenues

18,676

102,749

26,72640,19033,995

27,11345,654

Other lease business revenues

1,893

9,922

3,245

4,258

1,882

1,299

6,071

8,289

24,404

8,889

9,504

8,385

6,756

12,132

Management service fee

1,140

5,881

1,581

1,516

1,470

1,232

2,233

Taxes and dues

1,316

8,131

1,982

2,996

2,423

2,029

2,859

Utilities expenses

289

830

305

468

366

305

1,593

(3) Regal estate rental expenses(thousand yen)

information

A-05

636

(thousand yen)expenses

A-04

(%)

(2) Total real estate rental income

Income andA-03(million yen)

Balance sheet amount(1) Number of operating days

（７）

A-02

Repair Cost

2,048

5,164

1,957

2,441

1,741

1,483

2,793

Insurance expenses

33

176

45

93

61

60

82

Trust fees

496

296

296

296

296

296

296

2,965

3,924

2,721

1,692

2,024

1,349

2,273

(4) NOI(＝(2)-(3))

Other lease business expenses(thousand yen)

12,28088,26621,081

34,94427,492

21,65539,594(5) Depreciation(thousand yen)

4,676

26,734

10,174

10,859

9,273

8,814

12,314

7,604

61,532

10,90624,084

18,21912,841

27,279

429

947

321

643

150

321

321

11,85187,31920,75934,30027,342

21,33339,272(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

52Income and Expenditure by Property (2)Fiscal Period Ending July 2018 (As of July 31, 2018)（１）Area category

Major regional cities（２）Property No.
（３）Property name（４）Acquisition date
（５）
Price
information（６）
Leasing
information

S-FORTmarks

Rokuban-cho

Jul-01, 2015

Jul-01, 2015

Jul-01, 2015

Jul-01, 2015

A-13

A-14

S-FORT

S-FORTS-RESIDENCE Kobe

S-FORT Kyoto

Nakajima Koen

Hokudai Mae

Isogamidori

NishiojiJul-01, 2015

Jul-01, 2015

Jul-01, 2015

2.5

1.3

0.9

2.0

0.8

3.0

0.9

(million yen)

2,055

1,062

721

1,639

711

2,506

757

Total rentable area(㎡)

3,631.60

2,772.00

1,833.29

5,292.65

2,287.22

4,372.45

1,657.31

Leased area(㎡)

3,465.45

2,640.00

1,706.59

5,030.65

2,115.36

4,197.33

1,569.24

Occupancy rate

(%)

95.4

95.2

93.1

95.0

92.5

96.0

94.7

181

181

181

181

181

181

181

69,65036,32423,18658,87324,50387,20927,941

Real estate rental revenues

64,04633,056

20,981

54,95823,157

79,14525,234

Other lease business revenues

5,604

3,268

2,204

3,915

1,346

8,064

2,706

14,203

6,376

6,504

14,028

6,395

13,205

7,796Management service fee

2,545

1,702

1,217

2,731

990

2,710

1,796

Taxes and dues

4,635

1,576

1,655

4,799

1,572

5,026

1,443

Balance sheet amount(thousand yen)

Utilities expenses
Repair Cost

722

A-12

(%)

(3) Regal estate rental expenses

expenses

S-FORT Tsurumai

Namba Briller

1,020

A-11

(million yen)(thousand yen)

information

S-RESIDENCE

2,020

A-10

Composition rate(2) Total real estate rental income

Income andA-09

Acquisition price(1) Number of operating days

（７）

A-08

1,590

690

2,470

745

781

238

203

1,079

422

538

1,046

2,158

870

1,244

1,241

1,191

2,250

1,508

Insurance expenses

103

55

38

120

52

115

45

Trust fees

394

296

296

394

296

394

296

3,584

1,637

1,849

3,661

1,870

2,168

1,660

(4) NOI(＝(2)-(3))

Other lease business expenses(thousand yen)

55,44629,948

16,68144,845

18,10874,004

20,144(5) Depreciation(thousand yen)

13,849

9,746

7,501

14,1205,300

18,373

6,511

41,597

20,201

9,180

30,72512,80755,631

13,632

321

321

441

7,770

321

-

584

55,124

29,626

16,24037,074

17,78674,004

19,559(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

53Income and Expenditure by Property (3)Fiscal Period Ending July 2018 (As of July 31, 2018)（１）Area category

Major regional cities（２）Property No.

A-15
S-FORT（３）Property namePrice
information（６）
Leasing
information

Jul-01, 2015

Acquisition price(million yen)

Composition rate

S-RESIDENCE Shin

S-FORT Aoi

S-FORT

S-FORT

S-FORT

Osaka Ekimae

1-Chome

Aoi

Kurumamichi

Kamiotai

Aug-02, 2016

Aug-01, 2016

Aug-02, 2016

2,489

1,080

A-20

A-21

Aug-01, 2016

870

Aug-01, 2016

400

720

2.9

0.6

3.1

1.3

1.1

0.5

0.9

475

2,551

1,135

929

418

770

(㎡)

5,483.22

1,757.28

4,534.98

2,185.20

1,842.68

1,214.20

2,624.40

Leased area(㎡)

5,026.47

1,597.87

4,534.98

1,900.50

1,447.82

1,089.24

2,624.40

Occupancy rate

(%)

91.7

90.9

100.0

87.0

78.6

89.7

100.0

181

181

181

181

181

181

181

89,89816,98986,37632,291

27,917

13,54328,028

Real estate rental revenues

80,314

15,55279,30928,41025,667

11,76925,253

Other lease business revenues

9,583

1,436

7,066

3,880

2,249

1,774

2,775

21,295

4,567

15,525

8,559

5,047

4,073

6,511

Total rentable area

(3) Regal estate rental expenses(thousand yen)expenses

A-19

2,309

(thousand yen)

information

462

A-18

(%)

(1) Number of operating days

Income andOct-01, 2015

2,330

A-17

(million yen)

Balance sheet amount(2) Total real estate rental income（７）

S-FORT Gakuenmae

Katahira（４）Acquisition date
（５）

A-16

Management service fee

4,252

741

3,199

1,459

1,241

882

1,103

Taxes and dues

6,268

1,283

4,850

2,230

1,171

1,041

2,016

Utilities expenses
Repair Cost

647

465

845

311

204

160

337

6,628

1,115

2,534

1,307

611

1,204

1,425

Insurance expenses

144

48

151

70

53

34

67

Trust fees

296

276

296

296

-

-

296

3,057

636

3,647

2,884

1,765

750

1,263

Other lease business expenses(4) NOI(＝(2)-(3))(thousand yen)

68,602

12,42170,85023,731

22,8699,470

21,517(5) Depreciation(thousand yen)

27,322

4,723

18,999

7,383

4,893

2,529

6,672

41,2807,698

51,851

16,347

17,976

6,941

14,845

1,925

-

-

321

321

3,522

1,481

66,677

12,42170,85023,40922,547

5,947

20,035(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

54Income and Expenditure by Property (4)Fiscal Period Ending July 2018 (As of July 31, 2018)
Major regional cities（１）Area category（２）Property No.
（３）Property name（４）Acquisition date
（５）
Price
information（６）
Leasing
information

Acquisition price(million yen)

Composition rate

A-26

S-FORT Tsurumai

S-FORT Tsurumai

S-FORT Fukuoka

S-RESIDENCE Kobe

S-FORT Kobe

S-FORT

S-FORT

arts

cube

HigashiMotomachi

Kaguracho

Nijo-jo mae

Chion-in mae

Aug-02, 2016

Aug-02, 2016

Aug-02, 2016

Aug-02, 2016

Aug-02, 2016

Aug-02, 2016

Aug-02, 2016

680

570

1,900

1,200

A-27

1,858

A-28

812

500

0.8

0.7

2.3

1.5

2.3

1.0

0.6

591

1,976

1,230

1,907

825

509

Total rentable area(㎡)

1,988.56

1,460.64

5,584.41

2,169.67

4,900.32

1,735.95

1,049.01

Leased area(㎡)

1,917.54

1,259.55

5,359.71

2,169.67

4,696.29

1,735.95

1,049.01

Occupancy rate

(%)

96.4

86.2

96.0

100.0

95.8

100.0

100.0

181

181

181

181

181

181

181

25,441

21,94865,00040,01472,707

23,24914,797

Real estate rental revenues

22,15019,08357,60338,132

67,92623,248

14,797

Other lease business revenues

3,291

2,864

7,396

1,882

4,780

0

0

5,591

5,463

12,673

6,134

12,571

1,726

1,152

Management service fee

1,394

1,384

2,180

1,626

2,352

-

-

Taxes and dues

1,210

996

3,907

2,893

4,347

1,364

788

Utilities expenses

174

122

394

332

450

-

-

1,192

879

4,304

342

2,937

10

25

50

44

149

78

127

47

29

(3) Regal estate rental expenses(thousand yen)

information

A-25

731

(thousand yen)expenses

A-24

(%)

(2) Total real estate rental income

Income andA-23(million yen)

Balance sheet amount(1) Number of operating days

（７）

A-22

Repair Cost
Insurance expenses
Trust fees
Other lease business expenses

-

296

296

296

296

296

296

1,569

1,739

1,441

565

2,060

8

13

(4) NOI(＝(2)-(3))(thousand yen)

19,850

16,48552,32633,88060,135

21,522

13,645(5) Depreciation(thousand yen)

4,503

4,114

13,384

9,932

12,441

6,070

3,580

15,346

12,37038,942

23,947

47,693

15,451

10,065

321

1,251

636

-

-

683

-

19,52815,233

51,69033,88060,135

20,83813,645(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

55Income and Expenditure by Property (5)Fiscal Period Ending July 2018 (As of July 31, 2018)（１）Area category

Major regional cities（２）Property No.

A-29

Price
information（６）
Leasing
information

Acquisition price(million yen)

Composition rate

A-34

A-35

S-FORT

S-FORT

S-FORT

S-FORT

S-FORT

Tsurumai reale

Osu Kannon

Kita-Sanno

Aratamabashi

Toyohira Sanjyo

Feb-01, 2018

Feb-01, 2018

Mar-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

1,846

1,571

1,147

841

449

762

1.3

2.3

1.9

1.4

1.0

0.6

0.9

1,108

1,936

1,647

1,223

882

473

805

Total rentable area(㎡)

2,213.12

3,691.67

3,597.72

2,514.12

1,757.61

1,699.11

2,868.75

Leased area(㎡)

2,068.64

3,691.67

3,522.84

2,514.12

1,375.06

1,640.52

2,623.89

Occupancy rate

(%)

93.5

100.0

97.9

100.0

78.2

96.6

91.5

181

181

181

153

181

181

181

38,34860,37250,14733,26021,86815,69531,146

Real estate rental revenues

33,39957,86445,48031,784

20,655

13,756

26,551Other lease business revenues

4,949

2,508

4,667

1,476

1,212

1,939

4,595

10,71911,845

3,397

3,012

5,172

2,357

4,540

1,788

2,341

1,817

1,394

981

932

1,360

(3) Regal estate rental expenses(thousand yen)Management service fee

information

A-33

(%)

(thousand yen)expenses

1,085

A-32

(million yen)

Balance sheet amount(2) Total real estate rental income

Income andEkimaeAug-02, 2016

(1) Number of operating days

（７）

Midoribashi

Miyamachi（４）Acquisition date

A-31

S-RESIDENCE

S-FORT（３）Property name

（５）

A-30

Taxes and dues

1,851

-

-

-

-

-

-

Utilities expenses

1,290

542

212

214

250

133

640

Repair Cost

4,009

1,834

228

208

1,530

732

796

Insurance expenses

60

100

81

51

47

39

66

Trust fees

296

296

296

249

296

-

296

1,422

6,730

760

893

2,067

520

1,380

(4) NOI(＝(2)-(3))

Other lease business expenses(thousand yen)

27,62948,527

46,74930,248

16,695

13,33826,606(5) Depreciation(thousand yen)

9,131

13,05910,819

6,085

5,826

2,639

6,844

18,49835,46835,93024,162

10,86910,69819,761

3,300

288

150

2,562

160

1,277

-

24,32948,23846,59927,686

16,534

12,06026,606(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

56Income and Expenditure by Property (6)Fiscal Period Ending July 2018 (As of July 31, 2018)（１）Area category

Major regional cities（２）Property No.
（３）Property name（４）Acquisition date
（５）
Price
information（６）
Leasing
information

S-FORT

S-FORT

S-FORT

Kitamaruyama

Hakata-Higashi I

Hakata-Higashi II

A-40

S-FORT
Kobe SannomiyaKita

A-41

A-42

S-FORT

S-FORT

S-FORT

Nakahirodori

Tsurumicho

Aoba Kamisugi

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

425

389

382

515

885

820

918

(%)

0.5

0.5

0.5

0.6

1.1

1.0

1.1

(million yen)

458

409

409

544

921

857

958

(㎡)

1,613.38

1,034.20

1,034.20

884.882,127.92

2,006.49

2,072.84

Leased area(㎡)

1,317.12

974.14

1,034.20

787.632,072.74

1,853.42

2,041.34

Occupancy rate

(%)

81.6

94.2

100.0

89.0

97.4

92.4

98.5

181

181

181

181

181

181

181

17,074

14,975

14,635

15,597

29,69526,01535,003

Real estate rental revenues

14,948

11,91011,66815,16027,582

23,44632,766

Other lease business revenues

2,125

3,065

2,967

437

2,113

2,569

2,237

3,369

2,525

2,472

3,492

4,308

4,333

4,361

834

735

716

870

1,505

1,289

1,578

Balance sheet amount
Total rentable area

(3) Regal estate rental expenses(thousand yen)Management service fee

information

A-39

Composition rate

(thousand yen)expenses

A-38(million yen)

(2) Total real estate rental income

Income andA-37

Acquisition price(1) Number of operating days

（７）

A-36

Taxes and dues

-

-

-

-

-

-

-

Utilities expenses

532

568

564

264

212

234

376

1,343

535

372

1,274

1,134

1,065

634

40

28

28

31

48

47

53

Repair Cost
Insurance expenses
Trust fees
Other lease business expenses

-

-

-

-

296

296

296

617

658

790

1,050

1,111

1,399

1,420

(4) NOI(＝(2)-(3))(thousand yen)

13,705

12,44912,162

12,10525,387

21,68230,642(5) Depreciation(thousand yen)

3,249

2,381

2,340

2,730

5,354

5,763

7,166

10,456

10,067

9,822

9,374

20,033

15,91823,476

2,420

1,276

8,253

4,324

1,071

273

434

11,285

11,172

3,909

7,780

24,316

21,40830,208(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

57Income and Expenditure by Property (7)Fiscal Period Ending July 2018 (As of July 31, 2018)（１）Area category

Other regional cities（２）Property No.

B-01（３）Property name（４）Acquisition date
（５）
Price
information（６）
Leasing
information(million yen)

Composition rate

S-FORT

S-FORT Yokkaichi

S-FORT

Suminodo

Motomachi

SuzukaApr-15, 2015

Jul-01, 2015

1,420

B-07

S-RESIDENCE Esaka S-FORT Utsunomiya

Jul-01, 2015
480

B-06

Aug-02, 2016
580

Aug-02, 2016

2,323

S-FORT Yokkaichi
Nishishinchi
Aug-02, 2016

612

630

0.4

1.7

0.6

0.7

2.8

0.8

0.8

300

1,415

504

599

2,379

633

677

Total rentable area(㎡)

911.403,332.16

1,691.28

2,286.69

3,739.30

2,330.64

2,192.48

Leased area(㎡)

748.652,855.84

1,691.28

2,175.45

3,739.30

2,152.92

2,192.48

Occupancy rate

(%)

82.1

85.7

100.0

95.1

100.0

92.4

100.0

181

181

181

181

181

181

181

9,718

53,441

22,66627,151

77,69425,17528,287

Real estate rental revenues

9,354

44,75819,70622,287

69,34523,581

23,748Other lease business revenues

363

8,683

2,959

4,863

8,348

1,593

4,538

3,092

11,793

5,064

8,912

17,574

6,361

6,562

Management service fee

962

1,776

1,410

1,599

2,447

1,532

1,506

Taxes and dues

854

2,879

1,119

1,629

4,099

2,291

1,419

Utilities expenses

202

1,655

755

1,141

343

462

918

Repair Cost

294

2,517

624

2,635

3,233

950

1,084

(3) Regal estate rental expenses(thousand yen)expenses

S-FORT
Miyamachi

297

B-05

(%)

(thousand yen)

information

B-04(million yen)

Balance sheet amount(2) Total real estate rental income

Income and

B-03

Apr-15, 2015

Acquisition price(1) Number of operating days

（７）

B-02

Insurance expenses

24

87

37

53

135

59

56

Trust fees

496

496

296

296

296

296

-

257

2,381

821

1,556

7,019

768

1,577

(4) NOI(＝(2)-(3))

Other lease business expenses(thousand yen)

6,626

41,647

17,602

18,23860,12018,813

21,724(5) Depreciation(thousand yen)

3,144

14,937

6,271

7,414

14,938

5,383

6,129

3,481

26,71011,33010,82445,181

13,43015,594

804

2,471

7,835

321

-

321

236

5,821

39,176

9,767

17,91660,12018,491

21,487(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

58Income and Expenditure by Property (8)Fiscal Period Ending July 2018 (As of July 31, 2018)
Other regional cities（１）Area category（２）Property No.
（３）Property name（４）Acquisition date
（５）
Price
information（６）
Leasing
information

Acquisition price(million yen)

Composition rate

B-12

B-13

B-14

S-FORT

S-FORT Saga

S-FORT

S-FORT Nishinomiya

S-FORT

S-FORT

S-FORT Mie

Saga Honjo

Idaimae

Nishinomiya

Uegahara

Mito Chuo

Tsu Shinmachi

Daigaku-mae

Aug-02, 2016

Aug-02, 2016

1,050

375

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

1,412

789

1,807

767

599

1.3

0.5

1.7

1.0

2.2

0.9

0.7

383

1,478

817

1,896

810

638

Total rentable area(㎡)

4,972.84

1,507.35

2,887.26

1,546.28

6,503.80

2,463.30

1,874.88

Leased area(㎡)

4,972.84

1,507.35

2,528.50

1,521.28

6,091.54

2,463.30

1,874.88

Occupancy rate

(%)

100.0

100.0

87.6

98.4

93.7

100.0

100.0

181

181

181

181

181

181

181

36,223

12,89843,79726,021

65,51633,201

29,28335,537

12,64941,38923,55856,746

27,64522,196

685

248

2,407

2,463

8,770

5,556

7,086

4,120

1,587

6,358

3,435

10,266

5,063

3,842

-

-

2,123

1,610

3,461

1,520

1,128

2,969

963

-

-

-

-

-

Real estate rental revenues
Other lease business revenues(3) Regal estate rental expenses(thousand yen)Management service fee
Taxes and dues

expenses

B-11

1,072

(thousand yen)

information

B-10

(%)

(2) Total real estate rental income

Income andB-09(million yen)

Balance sheet amount(1) Number of operating days

（７）

B-08

Utilities expenses

-

-

778

679

632

640

662

Repair Cost

729

284

1,943

267

2,772

1,306

928

Insurance expenses

118

34

71

40

136

51

40

Trust fees

296

296

296

296

296

296

-

7

9

1,144

540

2,966

1,248

1,082

(4) NOI(＝(2)-(3))

Other lease business expenses(thousand yen)

32,103

11,31137,43822,58655,25028,13825,441(5) Depreciation(thousand yen)

13,921

4,590

8,376

4,395

14,171

6,973

4,825

18,181

6,720

29,062

18,191

41,07921,164

20,615

183

107

2,341

166

4,314

1,626

246

31,920

11,20335,09622,42050,936

26,51225,194(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

59Income and Expenditure by Property (9)Fiscal Period Ending July 2018 (As of July 31, 2018)
Other regional cities（１）Area category
B-15（２）Property No.
（３）Property name（４）Acquisition date
（５）
Price
information（６）
Leasing
information

S-FORT

S-FORT Oita

S-FORT Oita

S-FORT

Takasagomachi

EkimaeOtemachiSuizenji

B-20
S-FORT

Kumadaibyoin-

Kumamoto Senbamae

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

1,015

904

277

1,332

1,125

1,010

(%)

1.2

1.1

0.3

1.6

1.4

1.2

(million yen)

1,077

952

303

1,389

1,185

1,070

Total rentable area(㎡)

3,588.84

2,662.36

905.804,256.91

3,459.60

3,224.24

Leased area(㎡)

3,280.78

2,662.36

905.804,080.53

3,146.93

3,051.55

Occupancy rate

(%)

91.4

100.0

100.0

95.9

91.0

94.6

181

181

181

181

181

181

39,32931,663

10,076

51,39944,72339,021

Real estate rental revenues

32,67630,953

10,07339,94534,55334,651Other lease business revenues

6,653

710

2

11,454

10,1704,370

10,304

3,174

1,219

10,641

8,538

6,401

3,166

1,806

915

2,669

2,339

1,926

Balance sheet amount(3) Regal estate rental expenses(thousand yen)Management service fee

information

B-19
S-FORT(million yen)(thousand yen)expenses

B-18

Composition rate(2) Total real estate rental income

Income andB-17

Acquisition price(1) Number of operating days

（７）

B-16

Taxes and dues

-

-

-

-

-

-

Utilities expenses

1,853

529

66

1,308

1,219

354

Repair Cost

2,349

452

-

3,065

2,310

1,479

Insurance expenses

92

71

27

93

85

69

Trust fees

296

296

-

296

296

296

2,545

17

210

3,207

2,287

2,275

(4) NOI(＝(2)-(3))

Other lease business expenses(thousand yen)

29,02528,4898,856

40,75736,18532,620(5) Depreciation(thousand yen)

11,002

7,933

2,648

10,263

11,416

10,77718,022

20,5556,208

30,494

24,76821,843

3,230

164

414

120

692

273

25,79428,325

8,442

40,63735,49332,346(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

60Income and Expenditure by Property (10)Fiscal Period Ending July 2018 (As of July 31, 2018)
Greater Tokyo area（１）Area category（２）Property No.
（３）Property name（４）Acquisition date
（５）
Price
information（６）
Leasing
information

C-05

C-06

C-07

S-FORT

S-FORT Nihonbashi

S-FORT Itabashi

S-FORT

S-FORT

S-FORT Shonan

S-FORT

Maita Koen

Hakozaki

ShimuraShiomi

Noborito

Hiratsuka

Nishifunabashi

Apr-15, 2015

Jul-01, 2015

Jul-01, 2015

Jul-01, 2015

Jul-01, 2015

Jul-01, 2015

Jul-01, 2015

(%)

1.2

1.1

0.8

1.1

0.8

1.0

0.9

(million yen)

980

950

651

877

669

851

736

(㎡)

1,609.80

1,114.38

1,119.54

1,042.48

1,022.10

1,717.46

1,397.64

Leased area(㎡)

1,609.80

1,028.47

1,055.46

1,022.47

996.95

1,688.45

1,308.87

Occupancy rate

(%)

100.0

92.3

94.3

98.1

97.5

98.3

93.6

181

181

181

181

181

181

181

34,20728,296

20,40930,342

21,57032,76525,304

Real estate rental revenues

30,831

24,556

18,76826,70020,03830,152

23,724

Other lease business revenues

3,375

3,739

1,640

3,642

1,532

2,613

1,580

8,045

5,455

5,641

6,814

4,942

6,389

5,488

Management service fee

2,493

1,652

1,418

1,944

1,348

1,949

1,450

Taxes and dues

1,984

1,298

1,302

1,356

1,090

1,780

1,359

Utilities expenses

357

382

256

462

201

171

182

1,173

864

1,113

1,756

746

606

1,090

52

35

32

39

31

42

34

Balance sheet amount
Total rentable area

(3) Regal estate rental expenses(thousand yen)

information

C-04(million yen)(thousand yen)expenses

C-03

Composition rate(1) Number of operating days

Income andC-02

Acquisition price(2) Total real estate rental income

（７）

C-01

Repair Cost
Insurance expenses
Trust fees
Other lease business expenses

987

925

645

866

666

818

732

496

394

394

394

394

394

394

1,487

827

1,123

859

1,130

1,443

976

(4) NOI(＝(2)-(3))(thousand yen)

26,161

22,841

14,76823,528

16,627

26,376

19,815(5) Depreciation(thousand yen)

8,411

5,177

4,155

6,103

4,723

6,467

6,074

17,74917,663

10,613

17,425

11,904

19,90813,740

118

332

321

115

321

-

725

26,04322,50814,44623,412

16,30526,376

19,090(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

61Income and Expenditure by Property (11)Fiscal Period Ending July 2018 (As of July 31, 2018)
Greater Tokyo area（１）Area category
C-08（２）Property No.
（３）Property name（４）Acquisition date
（５）
Price
information（６）
Leasing
information

S-FORTS-RESIDENCE

Ichikawa

Yokosuka Chuo

Jul-01, 2015

Jul-01, 2015

Aug-02, 2016

mae

S-FORT
TsurukawaFeb-01, 2018

Feb-01, 2018

Feb-01, 2018

645

587

520

1.0

1.0

0.7

0.8

0.7

0.6

827

884

596

670

612

543

Total rentable area(㎡)

1,726.56

1,255.90

1,492.09

1,198.26

1,177.94

978.75

1,886.70

Leased area(㎡)

1,705.84

1,234.08

1,492.09

1,061.99

1,177.94

935.25

1,886.70

Occupancy rate

(%)

98.8

98.3

100.0

88.6

100.0

95.6

100.0

181

181

181

181

181

181

181

38,21427,542

29,64019,716

19,62019,53819,216

Real estate rental revenues

33,88325,47529,52018,175

19,62017,707

16,831Other lease business revenues

4,331

2,066

120

1,540

0

1,830

2,384

7,858

6,403

3,808

5,747

333

3,821

2,003

Management service fee

1,797

2,181

1,417

1,530

-

1,677

1,020

Taxes and dues

1,390

1,570

2,284

1,335

-

-

-

Utilities expenses

593

777

-

391

-

180

178

1,479

574

29

1,527

-

770

488

44

39

55

41

32

33

46

Insurance expenses
Trust fees
Other lease business expenses

585

Tamagawagakuen-

Hoya

1.4

Repair Cost

850

S-FORT

1,154(thousand yen)809

Aug-02, 2016

C-14

(million yen)

Balance sheet amount

1,130

S-FORT Sagamihara

C-13
S-FORT(%)(3) Regal estate rental expenses

expenses

S-FORT
Maihama

C-12(million yen)(thousand yen)

information

C-11

Composition rate(2) Total real estate rental income

Income andC-10

Acquisition price(1) Number of operating days

（７）

C-09

394

394

-

197

296

296

-

2,156

865

22

725

4

862

270

(4) NOI(＝(2)-(3))(thousand yen)

30,356

21,13925,831

13,96819,286

15,716

17,212(5) Depreciation(thousand yen)

6,944

3,734

7,710

4,452

3,779

3,356

2,138

23,412

17,405

18,121

9,516

15,507

12,36015,074

3,589

-

-

429

126

736

1,463

26,766

21,13925,831

13,53919,16014,98015,748(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

62Income and Expenditure by Property (12)Fiscal Period Ending July 2018 (As of July 31, 2018)
Greater Tokyo area（１）Area category
C-15（２）Property No.

C-16

S-RESIDENCE（３）Property nameYokohama
Tanmachi（４）Acquisition date
（５）
Price
information（６）
Leasing
information

S-FORT

S-FORT

S-FORT

S-FORT

S-FORT

Chigasaki

Kawaguchi Namiki

Todakoen

Funabashi Tsukada

Kashiwa

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

627

1,137

1,110

914

1,900

536

(%)

0.8

1.4

1.4

1.1

2.3

0.7

(million yen)

658

1,190

1,163

963

1,968

558

(㎡)

772.38

1,382.17

1,457.51

1,438.71

5,640.60

983.06

Leased area(㎡)

772.38

1,320.08

1,394.97

1,415.43

5,640.60

930.78

Occupancy rate

(%)

100.0

95.5

95.7

98.4

100.0

94.7

181

181

181

181

181

181

18,41032,40631,98629,482

58,11018,02718,36031,37831,746

27,81054,126

15,768

50

1,028

240

1,671

3,984

2,259

1,760

2,323

3,375

3,302

7,196

3,582

1,152

1,369

1,816

1,503

3,078

1,217

Balance sheet amount
Total rentable area

Real estate rental revenues
Other lease business revenues(3) Regal estate rental expenses(thousand yen)Management service fee

expenses

C-20(million yen)(thousand yen)

information

C-19

Composition rate(2) Total real estate rental income

Income andC-18

Acquisition price(1) Number of operating days

（７）

C-17

Taxes and dues

-

-

-

-

-

-

Utilities expenses

162

130

228

236

909

270

-

198

305

375

2,782

993

25

39

45

42

124

30

Repair Cost
Insurance expenses
Trust fees

296

296

287

296

296

-

Other lease business expenses

123

289

692

848

5

1,071

(4) NOI(＝(2)-(3))(thousand yen)

16,64930,082

28,611

26,18050,913

14,444(5) Depreciation(thousand yen)

4,218

6,796

6,695

6,391

9,998

2,922

12,43023,286

21,915

19,78840,915

11,521

-

128

-

-

399

155

16,64929,954

28,611

26,18050,514

14,288(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

63Financial Documents: Balance Sheet (1)(Unit：thousand yen）

(Unit：thousand yen）

Privious Fiscal Year

Current Fiscal Year

Privious Fiscal Year

Current Fiscal Year

(January 31, 2018)(July 31, 2018)(January 31, 2018)(July 31, 2018)

AssetsCurrent Assets
Cash and deposits

680,374

1,003,479

Cash and deposits in trust

975,119

1,508,337

Investments and other assets
Investment securities

259,518

5,898

Operating accounts receivable

4,349

9,498

Lease and guarantee deposits

10,428

10,542

Prepaid expenses

168,125

66,944

105,539

Long-term prepaid expenses

81,490Consumption tax receivable

0

93,769Total investments and other assets

351,436

184,566

deferred tax assets

11

18

53,408,675

84,332,063

Investment unit issuance expenses

13,942

28,229Investment corporation bond issuance costs

16,805

37,13430,74865,36455,202,235

87,122,379

Other
Total-current assets

36,0104,308

1,762,811

2,724,951

Non-current assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Machinery and equipment

2,212,968

4,077,538-76,006-127,285

2,136,961

3,950,253

0

1,698

0

-57

Machinery and equipment, net

0

1,641

1,849

8,990

Accumulated depreciation

-268

-574

Tools, furniture and fixtures, net

1,580

8,416

Land

1,524,232

4,021,075

Buildings in trust

29,865,892

44,176,029

Accumulated depreciation-1,806,912-2,385,167

Buildings in trust, net

28,058,979

41,790,862

13,251

13,251

Structures in trust
Accumulated depreciation-555-1,177Structures in trust, net

12,695

12,073

Machinery and equipment in trust

469,744547,966

Accumulated depreciation-52,884-66,976

Machinery and equipment in trust, net

416,860

480,989

Tools, furniture and fixtures in trust

32,58041,319

Accumulated depreciation-6,255-9,604

26,32531,714

Land in trust

20,879,603

33,850,471

Total property, plant and equipment

53,057,238

84,147,497

Tools, furniture and fixtures in trust,netdeferred assets

Total deferred assets

Accumulated depreciation
Tools, furniture and fixtures

Total non-current assets

Total Assets

64

Financial Documents: Balance Sheet (2)(Unit：thousand yen）
Privious Fiscal Year

Current Fiscal Year

(January 31, 2018)(July 31, 2018)

Liabilities
Current liabilities
Operating accounts payable

116,336

Short-term loans payable

200,000－

2,500,000

5,000,000

Accounts payable – other

19,09440,366

Accrued expenses

6,405

7,258

Accrued dividend

8,603

9,990

Accrued consumption taxes

3,581

－

675

718

Advances received

262,856

394,805

Deposits received

4,532

7,787

3,122,085

5,628,232

Current portion of long-term loans payable

Income taxes payable

Total current liabilities

167,304

Non-current liabilities
Investment corporation bonds

1,000,000

2,000,000

Long-term loans payable

24,700,000

37,600,000

Tenant leasehold and security deposits

29,90746,934

Tenant leasehold and security deposits in trust

223,281363,420

25,953,188

40,010,354

29,075,273

45,638,586

26,015,517

41,118,717

Total non-current liabilities
Total Liabilities
Net assets
Unitholdersʼ equity
Unitholdersʼ capital
Amount deducted from Unitholders' capital-508,713-645,685

25,506,804

40,473,032

Unappropriated retained earnings

620,156

1,010,760

Total surplus

620,156

1,010,760

26,126,961

41,483,792

Unitholdersʼ capital (Net amount)Surplus

Total unitholdersʼ equity
Total net assets

26,126,961

41,483,792

Total liabilities and net assets

55,202,235

87,122,379

65

Financial Documents：Statement of Income(Unit：thousand yen）
Previous Fiscal Year

Current Fiscal Year

(From:August 1, 2017

(From: February 1, 2018

To: January 31, 2018)

To: July 31, 2018)

Operating revenue
Rent revenue - real estate

1,681,707

2,602,421

Other lease business revenues

135,508

273,095

Silent partnership revenue

17,764

12,487

1,834,981

2,888,004

Expenses related to rent business

803,495

1,200,247

Asset management fee

129,063

127,973

Total operating revenue
Operating expenses

Asset custody fee

4,926

5,585

Administrative service fees

36,16050,018

Directorsʼ compensations

2,400

2,400

Remuneration for Accounting Auditors

10,00010,000

Other operating expenses

59,11187,335

Total operating expenses

1,045,157

1,483,560

789,823

1,404,444

Operating income
Non-operating income
Interest income

2

4

Total non-operating income

2

4

101,580

170,670

Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds

3,864

9,017

Borrowing related expenses

55,492

198,840

Amortization of investment unit issuance expenses

4,690

8,352

Amortization of investment corporation bond issuance costs

3,383

5,930

169,011392,812

Ordinary income

620,814

1,011,635

Net income before income taxes

620,814

1,011,635

Income taxes – current

842

986

Deferred Income taxes

3

-6

846

979

619,968

1,010,656

Total non-operating expenses

Total income taxes
Net income
Balance brought forward
Unappropriated retained earnings (-)

188

103

620,156

1,010,760

66

Financial Documents：Statement of Cash Flows(Unit：thousand yen）
Current Fiscal Year

Previous Fiscal Year

Current Fiscal Year

(From:August 1, 2017

(From: February 1, 2018

(From:August 1, 2017

(From: February 1, 2018

To: January 31, 2018)

To: July 31, 2018)

To: January 31, 2018)

To: July 31, 2018)

Cash flows from operating activities

Cash flows from investing activities

Net income before income taxes

620,814

1,011,635

Depreciation

433,805

647,959

Interest income(Unit：thousand yen）

Previous Fiscal Year

Purchase of property, plant and equipment-11,158-4,361,924

Purchase of property, plant and equipment in trust-45,508-27,364,071

-

-218

-2

-4

105,445

179,688

Proceeds from collection of lease and guarantee deposits

4,690

8,352

3,383

5,930

Decrease (increase) in operating accounts receivable825-5,148Decrease (increase) in consumption taxes receivable--93,769

Interest expenses
Amortization of investment unit issuance expenses
Amortization of investment corporation bond issuance
costs

Payment for lease and guarantee deposits

27

105

Repayments of lease and guarantee deposits received-1,891-5,780

Proceeds from lease and guarantee deposits received

1,260

22,807-23,256-42,455

14,214

182,594

Repayments of lease and guarantee deposits in trust
received
Proceeds from lease and guarantee deposits in trust
received

Decrease (increase) in consumption taxes payable-4,420-3,581

Decrease (increase) in prepaid expenses

1,035-38,595

Increase (decrease) in operating accounts payable

16,27338,746

Cash flows from financing activities

Increase (decrease) in accounts payable – other

1,505

21,272

Decrease in short-term loans payable-200,000-200,000

Increase (decrease) in advances received

4,198

131,949

Proceeds from long-term loans payable

2,500,000

17,900,000

Decrease (increase) in long-term prepaid expenses

1,518-86,635-2,500,000-2,500,000

Other, net-52,515

25,107

Subtotal

1,136,556

1,842,907

Interest income received
Interest expenses paid
Income taxes – current
Cash flows from operating activities2

4-105,552-178,834

Proceeds from redemption of investment securities
Cash flows from investing activities

Proceeds from issuance of investment corporation
bonds

8,246

266,107-58,067-31,302,836

Proceeds from issuance of investment units－

973,741

Payments for investment unit issuance expenses－

15,080,561

Dividends paid

-756,622-755,638

Cash flows from financing activities-956,622

30,498,662-2,254-3,580Net increase (decrease) in cash and cash equivalents

14,062856,323

1,028,752

1,660,496

Cash and cash equivalents at the beginning of period

1,641,431

1,655,494

Cash and cash equivalents at the end of period

1,655,494

2,511,817

67

Unitholder Information (1)Number of Units and Number of Unitholders by Unitholder Type◆ Number of units by unitholder type and number of unitholders by unitholder type
2018年
Fiscalperiodending July
7⽉期末
2018
(Units owned by(スポンサー分をFinancial Institutions

Other domestic corporations(including financial dealers)

sponsors areincluded)
含む)

2018年
Fiscalperiodending
July
7⽉期末
2018
(スポンサー分を(Units owned by

Financial Institutions

Other domestice(including financial dealers)

corporations

sponsors are not
含まない)
included )113,435⼝【41.9%】
0%

10%

20%

Overseas investors

11,729 units【4.3%】
23,567 units【8.7%】

30%

40%

50%

Individuals / Other

11,729 units【2.6%】 121,895 units【26.7%】

209,541 units【45.9%】

113,435 units【24.8%】

Overseas investors

60%

Individuals / Other
121,895 units【45.0%】

70%

80%

90%

100%

Number ofunitholders byunitholder type

As ofJanuary 31,
2017

As of July
31, 2017

As ofJanuary 31,
2018

As of July
2018

Financial Institutions(including financial
dealers)

59 people

53 people

51 people

51 people

Other domestic
corporations

262 people

235 people

216 people

198 people

Overseas investors

53 people

53 people

58 people

58 people

Individuals / Other

16,906
people16,725people15,493
people14,329peopleTotal

17,280people17,066
people15,818people14,636
people◆ Unitholder Information
Number of units byunitholder type

As ofJanuary 31,
2017

As of July
31, 2017

As ofJanuary 31,
2018

As of July
2018

Financial Institutions(including financial
dealers)

88,799 units

95,611 units 102,851 units 113,435 units

Other domestic
corporations

28,285 units

31,195 units

36,482 units 209,541 units

Overseas investors

8,038 units

6,730 units

9,604 units

11,729 units

Individuals / Other

157,878 units 149,464 units 134,063 units 121,895 units

Total

283,000 units 283,000 units 283,000 units 456,600 units

68Unitholder Information (2) Major Unitholders◆Major Unitholders (top 10) as of July 31, 2018
Investment
Unitholder

units(units)Ratio(%)

Daiwa Securities Group Inc.

161,700

35.41

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

28,638

6.27

Samty Co., Ltd.

24,274

5.31

Japan Trustee Services Bank, Ltd. (Trust Account)

22,195

4.86

Kinki Sangyo Credit Union

18,400

4.02

Daiwa PI Partners Co.Ltd.

10,858

2.37

Trust & Custody Services Bank, Ltd. (Securities

9,089

1.99

The Nomura Trust and Banking Co., Ltd. (Trust

8,984

1.96

Osaka co-sei Shinkin Bank

5,820

1.27

Daido Shinyoukumiai

4,957

1.08

Total of major unitholders (top 10)

294,915

64.58

Total of units

456,600

100.0069Change in Investment Unit Price（June 30, 2015 to August 31, 2018）

Source: Prepared by Samty Asset Management based on Tokyo Stock Exchange, Inc. Database70

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.

71