(REIT) Summary of Financial Results for Fiscal Period Ended January 2016
March 16, 2016
REIT Securities Issuer:
Securities Code:
Representative:

Samty Residential Investment Corporation(“Samty Residential”)
3459
Tetsuro Kawamoto, Executive Director

Listing: Tokyo Stock Exchange
URL: http://www.samty‐residential.com/en/

Asset Management Company: Samty Asset Management Co., Ltd.
Representative:
Yosuke Masuda, President

Scheduled date of submission of securities report:
Scheduled date of commencement of distribution payout:

Inquiries: Takeshi Fujiwara
Director
Business Management Department
Phone: +81‐3‐5220‐3841April 27, 2016
April 21, 2016

Preparation of supplementary financial results briefing materials: Yes
Holding of financial results briefing session:
Yes (for institutional investors and analysts)(Amounts are rounded down to the nearest million yen)1.

Status of Management and Assets for Fiscal Period Ended January 2016 (from March 16, 2015 to January 31, 2016)(1) Management Status(% figures are the rate of period‐on‐period increase (decrease))
Operating revenue
Operating income
Ordinary income
Net income
mn yen%mn yen%mn yen%mn yen%Fiscal period1,458–598–
170–
168–
ended Jan. 2016
Net income
per unit

Ratio of net income
to equity

Ratio of ordinary income
to total assets%

Ratio of ordinary income
to operating revenue%

yen%
Fiscal period
1,501
2.1
1.0
11.7
ended Jan. 2016
(Note 1) The calculation period for the fiscal period ended January 2016 of Samty Residential is a period of 322 days from March 16,
2015 to January 31, 2016.
(Note 2) Net income per unit is calculated by dividing net income by the daily weighted average number of investment units (112,527units).
(Note 3) Percentage figures for operating revenue, operating income, ordinary income and net income are the rate of period‐on‐period
increase (decrease), but are not applicable for the fiscal period ended January 2016 because it is the first fiscal period.
(2) Distribution Status
Total
Total
Distribution Distribution
per unit
Distribution distribution distribution
Total
Ratio ofper unit(excluding
in excess of(including(excluding
distribution
Payoutdistribution(including
distribution distribution
earnings
distribution distribution in excess ofratiotoin excess of in excess of
per unit
in excess of in excess ofearnings
net assetsearnings)
earnings)
earnings)
earnings)
yen
yen
yen
mn yenmn yenmn yen%%Fiscal period
1,810
1,034
776
295
168
126
100.0
1.0
ended Jan. 2016
(Note 1) The breakdown of total distribution in excess of earnings is 0 million yen in total distribution from the allowance fortemporary difference adjustment and 126 million yen in total distribution from distribution accompanying decrease in capital,etc. under tax law.
(Note 2) The ratio of decrease in surplus, etc. by implementing distribution in excess of earnings (refund of capital contribution tounitholders) is 0.008.
(Note 3) Payout ratio is calculated by the following formula.
Total distribution (excluding distribution in excess of earnings) ÷ Net income × 100(3) Financial Position
Total assets
mn yenFiscal period
ended Jan. 2016

33,890Net assets

Equity ratio

Net assets per unit

mn yen%yen

16,18447.8

99,081‐1‐

(4) Status of Cash FlowsNet cashprovided by (used in)operating activities
mn yenFiscal period
643
ended Jan. 20162.

Net cashprovided by (used in)investing activities
mn yenNet cash
provided by (used in)financing activities
mn yen(32,780)

33,119mn yen982

Forecast of Management Status for Fiscal Period Ending July 2016 (from February 1, 2016 to July 31, 2016)(% figures are the rate of period‐on‐period increase (decrease))

Operatingrevenue

OperatingincomeOrdinary
incomeDistribution
Distribution
per unit
per unit Distribution(includingNet income(excluding in excess of
distribution
distribution earnings
in excess ofin excess of
per unitearnings)
earnings)
mn yen%yenyenyen

mn yen%mn yen%mn yen%Fiscal period
1,085 (25.6)
423 (29.3)
330 93.8
329
ending July 2016(Reference) Forecast net income per unit for fiscal period ending July 2016: 2,017 yen*

Cash and cash equivalents
at end of period

95.0

2,591

2,017574

Other(1) Changes in Accounting Policies, Changes in Accounting Estimates and Retrospective Restatement① Changes in accounting policies accompanying amendments to accounting standards, etc.: No② Changes in accounting policies other than ①:
NoNo③ Changes in accounting estimates:④ Retrospective restatement:No(2) Total Number of Investment Units Issued and Outstanding① Total number of investment units issued and outstanding (including own investment units) at end of period
Fiscal period ended January 2016
163,340 units② Number of own investment units at end of period
Fiscal period ended January 2016
0 units*

Presentation of the status of implementation of audit procedures
At the time of disclosure of this summary of financial results, audit procedures for financial statements pursuant to the Financial
Instruments and Exchange Act have not been completed.

*

Explanation of the appropriate use of the forecast of management status, and other matters of special note
The management status outlook and other forward‐looking statements contained in this document are based on information
currently available to and certain assumptions deemed reasonable by Samty Residential, and actual management status, etc. may
differ materially due to various factors. In addition, the forecast is not a guarantee of the amount of distributions.

‐2‐Samty Residential Investment Corporation (3459) Summary of Financial Results for Fiscal Period Ended January 2016
Assumptions Underlying Forecast of Management Status for Fiscal Period Ending July 2016
Item
Fiscal period

Assumption
・Fiscal period ending July 2016 (from February 1, 2016 to July 31, 2016) (182 days)

・Managed assets

Operatingrevenue

It is assumed that Samty Residential will continue to own the trust beneficiary interests in real estate for 29
properties it owns as of today through the end of the fiscal period ending July 2016, and that no otherproperty will be newly acquired.
・ In practice, change may arise due to acquisition of new properties or disposition of owned properties, etc.

・Real estate rent revenue is calculated on the basis of historical data and by taking into account the status ofleasing.

・Expenses related to the rent business, which are the principal operating expenses, are calculated on the basisof past results of Samty Residential, taking into account the fluctuation factors of expenses.
Real estate rent income (excluding gain on sales of real estate properties) after deducting expenses related to
the rent business (including depreciation) is assumed to be 507 million yen.
Depreciation is calculated using the straight line method, and is assumed to be 268 million yen.
The property taxes and city planning taxes, etc. to be recorded as expenses are assumed to be 71 million yen.
Repair expenses for buildings are assumed to be 7 million yen, based on the medium‐ to long‐term repair
plans prepared by the asset management company. However, the amounts could differ significantly from theassumed figures, as increased or additional repair expenses may arise due to unpredictable factors.

・OperatingexpensesNon‐operating
expenses
Borrowings

Investment units・・・・

Interest expenses and borrowing related expenses are assumed to be 93 million yen.

・Interest‐bearing liabilities due for repayment during the fiscal period ending July 2016 subsequent to the dateof this document are assumed to be financed through refinancing the entire amount, and the balance ofinterest‐bearing liabilities is assumed to be 17,162 million yen.

・ The total number of investment units issued and outstanding is assumed to be 163,340 units, which is thefigure as of today.
・ It is assumed that there will be no change in the number of investment units due to issuance of new
investment units, etc. through the end of the fiscal period ending July 2016.

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Samty Residential Investment Corporation (3459) Summary of Financial Results for Fiscal Period Ended January 2016
ItemAssumption

Distributionper unit(excludingdistributionin excess ofearnings)

・ Distribution per unit (excluding distribution in excess of earnings) is calculated on the assumption that theamount of earnings is distributed pursuant to the cash distribution method stipulated in Samty Residential’sArticles of Incorporation.
・ There is the possibility that the distribution per unit (excluding distribution in excess of earnings) may vary due
to various factors, including changes of managed assets, variation in real estate rental revenue in accordancewith changes of tenants, and occurrence of unpredicted repairs.

Distribution
in excess ofearnings
per unit

・ Distribution in excess of earnings per unit is calculated pursuant to the cash distribution method stipulated in
Samty Residential’s Articles of Incorporation as well as the asset management company’s internal regulations.
・ As of today, Samty Residential believes that no significant deterioration is likely to take place for the current
external economic environment, the real estate market conditions and Samty Residential’s financial conditions.
・ Samty Residential anticipates that there will be ample opportunities, etc. to acquire new properties asinvestments that should contribute to increasing portfolio earnings power in the fiscal period ending July 2016,
although part of the real estate transaction market appears to be overheated. Accordingly, it is highly
necessary to reserve certain amounts of funds to make it possible to respond to such opportunities flexibly. On
the other hand, in consideration of such factors as Samty Residential’s financial conditions and the prospect of
its ability to refinance the borrowings, Samty Residential considers itself to not be in a position in the fiscal
period to allocate funds preferentially for reinforcing its financial base through such measures as reducing
interest‐bearing liabilities. While depreciation for the trust beneficiary interests in real estate for 29 properties
it owns as of today is anticipated to be 268 million yen for the fiscal period ending July 2016, the six‐monthaverage of the sum total of the estimated urgent repair expenses, estimated short‐term repair expenses andestimated long‐term repair expenses for the said 29 properties described in the building condition survey
reports will be only 29 million yen. Accordingly, Samty Residential expects to have residual free cash flow evenafter making certain reserves from the cash and deposits on hand equivalent to the depreciation amount at
the end of the fiscal period as reserves for capital expenditures to maintain the building functions, etc., asfunds equivalent to the estimated amount of working capital, etc. and as reserves in preparation forinvestments that should contribute to increasing portfolio earnings power as stated above.
・ Considering the above, Samty Residential believes as of today that it is appropriate to implement distribution
in excess of earnings for the fiscal period ending July 2016, and anticipates 93 million yen as total distribution
in excess of earnings (Note 1). In this case, the payout ratio (Note 2) is anticipated to be 70.8%, and the total
distribution in excess of earnings is anticipated to be equivalent to 35.0% of the depreciation expected toaccrue in the fiscal period.
(Note 1) Distribution in excess of earnings shall be implemented only when the total continuous appraisal value of the real estate
properties owned by Samty Residential at the end of the fiscal period (refers to the appraisal value indicated in the realestate appraisal reports or the investigated value indicated in the valuation reports obtained for the real estate properties
owned by Samty Residential with the fiscal period end as the date of value (appraised value at end of period); the same
follows hereafter) is greater than the total adjusted book value of the owned real estate properties (refers to the book valueof the respective owned real estate properties at the end of the fiscal period of Samty Residential, after deducting theamount equivalent to the incidental expenses upon acquisition of the owned real estate properties; the same followshereafter) plus total reserves for the planned construction work amount (capital expenditures) of the repair and renewal
expenses scheduled for the next fiscal period as well as other planned reserves. If these requirements are not satisfied,therefore, Samty Residential will not implement distribution in excess of earnings for the 2nd fiscal period ending July 2016
despite the above forecast.
Moreover, if any significant deterioration or other changes newly occur in the external economic environment, the realestate market conditions or Samty Residential’s financial conditions, etc. or if any major changes, etc. in Samty Residential’sfinancial conditions (including, but not limited to, LTV level and conflicts with financial covenants established for Samty
Residential’s borrowings) occur as a result of new borrowing of funds accompanying acquisition of new assets (including
to‐be‐acquired assets), the policy as of today to implement distribution in excess of earnings for the 2nd fiscal period ending
July 2016 as part of the cash management may be changed and, despite the above forecast, distribution in excess ofearnings may not be implemented for the 2nd fiscal period ending July 2016. In addition, Samty Residential believes as oftoday that it is appropriate to implement distribution in excess of earnings for the 2nd fiscal period ending July 2016 withtarget payout ratio of around 70% and up to the amount equivalent to 35% of depreciation in the fiscal period. However,such an amount or percentage may be reviewed if there newly arises a major change in the revenue and expense structureof the portfolio due to significant additions of new assets, etc. or important changes take place in the financial environment
and the real estate investment trust market conditions, etc. As a result, the amount of distribution in excess of earnings forthe 2nd fiscal period ending July 2016 as anticipated above may be changed.
(Note 2) “Payout ratio” represents the ratio of total cash distribution, including distribution in excess of earnings, to net income anddepreciation combined.

Other・ It is assumed that there will be no revision to laws and regulations, tax system, accounting standards,
regulations applying to publicly listed companies and rules of The Investment Trusts Association, Japan, etc.
that will impact the aforementioned forecast figures.
・ It is also assumed that there will be no unexpected material changes in general economic trends and realestate market conditions, etc.
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