Samty Residential Investment Corporation（Securities CODE：3459）

Financial Results for the 7 th Fiscal PeriodEnding January 2019

Table of contents
１. .Features of Samty Residential Investment Corporation

P.3

２. Financial Overview for the 7th Fiscal Period

P.9

３. Managing Results

P.12

４. Future Growth Strategy

P.29

５. Operating Results and Distribution Information

P.35

６. Appendix

P.42

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

5.0% investment (Note2)【Overview of Samty Co., Ltd.】
Establishment: 1982
Capital: 15.9 billion yen (as of the end of Nov. 2018)
Number of employees: (consolidated) 207(as of the end of Nov. 2018)
Business: Real estate business, real estate leasing
business, real estate planning and design, etc.

33.7% investment (Note2)(equity method affiliate)【Overview of Daiwa Securities Group Inc.】
Establishment: 1943
Capital: 247.3 billion yen (as of the end of Sep. 2018)
Number of employees: (consolidated) 16,516(as of the end of Sep. 2018)
Business: Holding, management and control of shares ofcompanies 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 January 31, 2019.

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

Support from Daiwa
Securities Group

Wide-ranging support from the sponsor

Utilization of functions andnetwork as a comprehensive
securities group

Provision of warehousing functions

Provision of information
Supporting formation of abridge fund
Cooperation in securing staff

Enhancing value through runninga unified brand

Provision of human resources andmanagement/operating support
Provision of various information“(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

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

Floor per unit of lessthan 30m2

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 96 residential properties throughout Japan and successfully
composed more stable diversified portfolio concentrating in major regional cities
Hokkaido 7■ChibaS-RESIDENCE Matsudo■Hokkaido
S-RESIDENCE Miyanomori

Niigata 1

Kyoto 3
Hyogo 7
■HyogoS-FORT Kobe Ogawadori

Hiroshima 2

Tochigi 1
Saitama 2

Fukuoka 6

Miyagi 4■ChibaS-RESIDENCE
Motoyawata■Niigata
S-FORT Niigata
Honcho■AichiS-RESIDENCE Aoi■OsakaS-FORT Esaka
Tarumicho

Saga 2
Ibaraki 1
Kumamoto 4■Kumamoto
S-FORT Kumamoto Senba

Oita 3

Osaka 9Chiba 7

Mie 5

Tokyo 7

Aichi 16

Kanagawa 7

Shizuoka 2(Note)The figure for a total of 96 properties excluding 2 properties consisting of 1 property sold on January 31, 2019 and
1 property scheduled to be sold on July 31, 2019 and including 5 properties acquired on February 28, 2019 orscheduled to be acquired on March 29, 2019 is indicated.

7

Portfolio Overview (2)Investment structure of owned properties (As of end of July 2019: 96 properties (assumption))
Investment ratio by geographical area
Greater
Tokyo
area
22.7%
Chugoku
1.9%

Koushinetsu
1.1%

Kinki
26.2%

Ratio ofRegional
cities
77.3％ Tokai

Kita Kanto
2.7%
Hokkaido
5.4%

TohokuOther
Regional 6.2% Kyushu
14.6%
cities22.0%

Major
Regional
19.2%
cities55.3%

Ratio by building age
15 yers to lessthan 20 years
8.9%

10 years to lessthan 15 years
49.1%

Familytype
10.8%

Ratio ofsingleandCompact typecompact
type
36.0%
89.2%

Singletype
53.2%

Investment ratio by
information/acquisiton channel(Note2)More than
20 years
0.5%

Average
Building age
9.1 year

Ratio of average area per residential unit

Less than
5 years
35.0%

5 yers toless than
10 years
6.5%

Developed/O
wned bysponsor
45.6%

Bridge(SPC)
4.0%

Warehousing
25.1%
Sponsor

AM

50.9

49.1%

Third party
12.9%

Bridge(SPC)
Third party 11.2%
1.3%(Note 1) The above ratios are calculated based on acquisition prices for 96 properties, including 5 properties newly acquired in February and March 2019 and excluding 2 properties
sold in January 2019 or scheduled to be sold in July 2019.
(Note 2) 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 7 th Fiscal Period

Summary of Income Statement for 7th Fiscal Period
Comparison of Forecast and Actual Result
Although real estate rental revenue was lower than the assumption, operating
expenses including leasing costs decreased. Net income increased significantly
due to revenue from sales of properties and administrative service fees.
(million yen)
5th Period

7th Period (January 31, 2019)

6th Period

results

results（January 31,(July 31,

2018)

2018)

Forecast(As of
Septemer 14,

Change from

Results

Forecast

Vs. 5th andVs. 6th and7th results

7th results

2018)Management performance
Operating revenue

1,834

2,888

3,079

3,216

+137

+1,381+328(out of which, real estate rental revenue)

1,817

2,875

3,079

3,034

-44

+1,217+159

Operating expenses

1,045

1,483

1,614

1,609

-5

+564

+126

(out of which, real estate rental expenses)

803

1,200

1,212

1,233

+21

+430

+33

Operating income

789

1,404

1,464

1,606

+142

+817

+202

Non-operating income and loss

-169

-392

-329

-285

+43

-116

+107

Ordinary income

620

1,011

1,135

1,321

+185

+700

+309

0

0

1

0

0

0

0

619

1,010

1,134

1,320

+186

+700

+309

Corporate tax, etc.
Net income(yen)■Distributions(Note)
Distribution per unit
(Not including distribution

2,191

2,213

2,250

2,620

+370

+429

+407

Distribution in excess of earnings
per unit・・・②

484

468

450

456

+6

-28

-12

Total distribution per unit ・・・① + ②

2,675

2,681

2,700

3,076

+376

+401

+395

in excess of earnings)・・・①(Note1) Calculated with the numer of investment units issued at 283,000 units for 5th period, 456,600 units for 6th period and504,100 units for 7th period.
(Note2) For more details, please refer to “Outlook of Distribution” on page 37.

Vs. 7th fiscal period forecast

Although revenues from rents includingcommon area expenses decreased, operating
revenue was 3,216 million yen (+137 million
yen from the plan) due to the sale of one
property. In addition, operating expenses was
1,609 million yen (-5 million yen from the plan)and operating income was 1,606 million yen(+142 million yen from the plan) due to thedecrease in leasing promotion expenses,
administrative service fees and taxes and dues.
Consequently, net income was 1,320 million yen(+186 million yen from the plan).

Vs. 7th fiscal period forecast(+ indicates increase factors, –indicates decrease factors)■ Increase in operating revenue
・Decrease in revenues from rents
including common area expenses
and key money
・Increase in other revenues fromrental business・Revenue from sales of real estate+137 million yen-72 million yen＋28 million yen+181 million yen■ Decrease in operating expenses+5 million yen
・Increase in real estate rental expenses-12
million yen
・Increase in depreciation-8 million yen
・Decrease in selling, general andadministrative expenses＋26 million yen■ Increase in non-operating income＋43 million yen
and loss・ Decrease in non-operating expenses ＋43 million yen【Average occcupancy rate】
Forcast：96.3％

Actual：94.9％【Capital expenditures】
Forecast：99 million yen【Payout ratio】

Actual：104 million yen

Actual：77.3％

Forecast：75.1％

10

Summary of Income Statement for 7th Fiscal Period
Comparison of Forecasted Distribution with Actual Result◆ Comparison of forecast and actual results for 7 th fiscal period
Operatingrevenue factors＋137 mn yen（+272 yen）

Operating

Non-operating income andexpensed factors

expense factors+5 mn yen

+43 mn yen（+12 yen）（+85 yen）
Total distribution
1,550 mn yen（3,076 yen）

Revenue fromsales of realestate＋181 mn yen（＋359 yen）

Total distribution
1,361 mn yen（2,700 yen）
Payout ration
75.1%

Distributoin
Excess of
earnings
227 mn yen(450 yen)

Decrease inrevenues fromrents includingcommon area
expenses andkey money-72 mn yen（-143 yen）

Decrease in
selling,
general andadministrative
expenses
26 mn yen(+52 yen)

Increase inother income+28 mn yen（＋56 yen）

Increaes inreal estate
expenses-12 mn yen（-24 yen）

Increase indepreciation-8 mn yen（-16 yen）

Decrease innonoperating
expenses
43 mn yen（+85 yen）

Payout ratio
77.3%
Distribution inexcess of earnings
229 mn yen(456 yen)

Distribution
1,320 mn yen(2,620 yen）

Total
increase in
distribution＋186 mnyen（＋370 yen）

Distribution
1,134 mn yen(2,250 yen）

7th period forecast ditstibution（announced on September 14,2018)(Note) The above figures are rounded down to the nearest whole number.

7th period
actual results

11

３. Managing Results

Management SummaryExternal
GrowthSamty Residential will continue to expand its asset size by utilizing warehousing in cooperation with the bridge fund and sponsor
and cooperating with developers.
⇒Acquired 11 properties (total acquisition price: 8.1 billion yen) in August and November 2018.
Asset size is scheduled to expand to 90.8 billion yen (96 properties) at the end of July 2019 through further conducting of property
replacements (sale of 2 properties in January and July 2019 and acquisition of 5 new properties in February and March 2019).

Occupancy rate fell below the assumption although unit rent after adjustment was stabilized⇒Newly acquired 33 properties with the third-party allotment in the 6th period and 11 properties due to capital increase
through public offering in the 7th period

Internal
Growth・Delay in the improvement of occupancy rate due to the increase in the number of properties at the beginning of the off-season
・Focused on the amount of increase in unit rent for existing properties. Aiming to implement measures centering on
the improvement of occupancy rate in the future.

Financial
StrategySamty Residential intends to diversify its fund procurement methods by conducting capital increase through public offering.

Samty Residential aims to develop a solid financial base and decrease the spread by diversifying repayment dates of interestbearing liabilities.



One city bank will participate as a lender. Samty Residential intends to continue enhancing lender formation.

◆ Portfolio highlights

No. of properties

End of 5th period

End of 6th period

End of 7th period(January 31, 2018)(July 31, 2018)(January 31, 2019)

End of 8th period(July 31, 2019)(assumption)

49 properties

82 properties

92 properties

96 properties

Total acquisition price

51,551 million yen

81,515 million yen

88,222 million yen

90,842 million yen

Appraisal value

56,658 million yen

87,976 million yen

95,320 million yen-

Appraisal NOI yield

5.6%

5.5%

5.4%

-

(Note1)

102,854 yen

97,025 yen

97,074 yen-

8.9 year

9.0 year

9.0 year

9.1 year（Note3）

96.5%

95.1%

（Note2）-

3,754 units

5,920 units

6,334 units

6,487 units

NAV per unit

Average building age
Occupancy rate
No. of rentable units

95.4%(Note 1) Calculated by: Unitholder capital + Unrealized gain/loss (Appraisal value –Book value) / Number of investment units issued.
(Note 2) Occupancy rate at the end of the 7th period is the figure as of January 31, 2019 for a total of 91 properties excluding S-RESIDENCE Suminodo sold at the end of January 2019 and S-RESIDENCE Niigata Honcho recently
completed.
(Note 3) Average building age at the end of the 8th period is the figure as of July 31, 2019 for a total of 96 properties including 5 properties that will be newly acquired or are scheduled to be newly acquired and excluding 2
properties that will be sold or are scheduled to be sold. Furthermore, appraisal NOI yield is calculated based on the figures of the appraisal report with January 31, 2019 as the appraisal date for the existing 92 properties.

13

Overview of Property Replacement (1)■ The number of residences owned throughout Japan increased from 82 (end of the 6th period) to
96 (assumption at the end of the 8th period).

Asset size
(million yen)

81.5

Intending to improve the quality of the portfolio.

90.8

Average building age(Note1)

9.1 year◆ Change from the end of the 6th period through the end of the 8th period (assumption)
Area

No. of properties

Acquisition priceNo. of rentable units

Major regional
cities42 properties→
50properties

45.7 billion yen(56.1%) →50.2 billion yen (55.3%)

3,270 units→
3,531 units

Other regional
cities20 properties→
23 properties

18.8 billion yen (23.1%) →19.9 billion yen (22.0%)

1,602 units→
1,695 units

Greater Tokyoarea

20 properties→
23 properties

16.9 billion yen (20.8%)→
20.6 billion yen (22.7%)

1,048 units→
1,261 units

Total

82 properties→
96 properties

81.5 billion yen →90.8 billion yen

5,920 units→
6,487 units(Note) Average building age is the figure as of July 31, 2019 for a total of 96 properties including 5 properties that will be newly acquired were or are scheduled to be newly acquired andexcluding 2 properties that will be sold or are scheduled to be sold.

14

Overview of Property Replacement (2)■Scheduled to sequentially sell and acquire properties from the end of January 2019. Asset size expected to
expand to 90.8 billion yen.
Sales: 7th Period (ending January 31, 2019)

Acquisition: 8th Period (ending July 31, 2019)B-02 S-FORT Suminodo (Sold at the end of January 2019)

A-49 S–RESIDENCE Aoi (acquired at the end of February 2019)

Location
AccessNo. ofreasable units
Completion
date

Daito-shi, Osaka
About 1-minute walk from
Suminodo Sta., JR
Gakkentoshi Line

Higashi-ku, Nagoya-shi

Location
AccessNo. ofreasable units

Replacement

126 units

Completion
date

Apr. 2008

About 4-min work from ShinSakaemachi Station, Nagoya
City Subway Higashiyama Line
95 units
Sep. 2018

Acquisition priceAppraisal value

Disposition price

Acquisition priceAppraisal value(million yen)Appraisal NOI
yield

1,420

1,590

1,600

1,484

1,490

4.6%

(million yen)(million yen)(million yen)

Sales：8th Period（ending July 2019)(million yen)

Acquisiton: 8th Period（ending July 2019)A-02 S-FORT
Sanno（to be sold at the end of
Jul. 2019)

A-50 S-RESIDENCE

A-51 S-FORT

B-24 S-FORT

Shiga Hondouri

Kobe Ogawadori

Kumamoto Gofukumachi

Motoyawata(to be acquired at the end of(to be acquired at the end of(to be acquired at the end of(to be acquired at the end of

Mar.2019)

Mar.2019)

Mar.2019)

Mar.2019)

Kita-ku, Nagoya-shi

Hyogo-ku, Kobe-shi

Chuo-ku, Kumamoto-shi

Ichikawa-shi, Chiba

Replacement

Location

Nakagawa-ku, Nagoya-shi

Location

C-23

S-RESIDENCE

No. of reasable units

230 units

No. of reasable units

88 units

46 units

54 units

100 units

Completion date

Jan.2008

Completion date

Jan.2019

Jun.2008

Feb.2006

Jan.2019

Acquisition price

2,890 mn yen

Acquisition price(scheduled)

1,150 mn yen

599 mn yen

599 mn yen

1,678 mn yen

Appraisal value

3,270 mn yen

Appraisal value

1,160 mn yen

600 mn yen

604 mn yen

1,680 mn yen

Sales price(scheduled)

3,300 mn yen

Appraisal NOI yeild

4.8%

5.3%

5.8%

4.6%

15

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.

16External Growth

Properties acquired in August 2018 and November 2018
A-43 S-RESIDENCE Shin Osaka Ridente
Location
AccessNo. ofreasableunits

Chuo-ku, Sapporo-shi

Location

Matsudo-shi, Chiba

About 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(millin yen)

1,338

1,390

Completiondate
Acquisition
price(million yen)896

Appraisalvalue(million yen)934

B-21 S-FORTEsaka Tarumicho
Location

No. ofreasableunitsCompletiondate
Acquisition
priceAppraisalvalue(million yen)(million yen)

774

788

Acquisiton
priceAppraisal
NOI yield

Appraisalvalue(million yen)(millin yen)

660

679

4.6%

A-45 S-FORT
Fukushima Libre

A-44 S-FORT
Fukushima La Luna
No. ofreasableunitsCompletion
date

Jan.2018

Appraisal
value

Location

No. ofreasableunits

90 units(million yen)

C-22 S-RESIDENCE Matsudo

Location

Completiondate
Acquisiton
price

A-47 S-RESIDENCE Miyanomori

Yodogawa-ku,
Osaka-shi

48 units
Jan.2016

Completion
date

4.6%

Suita-shi,
Osaka

Acquisition
price(million yen)

538

U(million yen)960

Appraisalvalue(million yen)

967

Acquisiton
priceAppraisal
NOI yield

Completiondate

MChuo-ku,
Niigata-shi(million yen)(million yen)

429

430

Mar.2018

5.6%(Note) Appraisal value and Appraisal NOI yield are based on the figures of the appraisal report with
June 1, 2018 as the appraisal date.

840

850

Acquisition
price

42 units

No. ofreasableunits

Feb.2004

Completion
dateAppraisal NOI
yield

Acquisition
price(million yen)(million yen)

5.7%

303

304

Naka-ku,
Hamamatsu-shi

Appraisalvalue

C-21 S-FORT
Fujimidai

Location

No. ofreasableunits

34 units

No. ofreasableunitsCompletion
date

Mar.2007

Completion
dateAppraisalvalue(million yen)(million yen)

239

240

U

Appraisal
NOI yield

4.6%

Location

Higashi-ku,
Nagooya-shi

M

Location

83 units

Appraisal NOI
yield

Appraisalvalue

B-23 S-FORT
Motohama

Appraisalvalue

A-48 S-FORT
Higashi-Sapporo Nordo

Location

Acquisition
priceOct. 2018(millin yen)U

Aug.2016
Appraisal NOI
yield

52 units(million yen)

5.4%

36 units

4.7%

Completiondate
Acquisition
priceCompletiondate

No. ofreasable
units

539

No. ofreasableunits

Nov.2016

5.0%(million yen)

Location

48 units

Appraisal NOI
yield

Appraisalvalue

B-22 S-FORT
Niigata Honcho

Nov. 2017

Fukushima-ku,
Osaka-shi

No. ofreasableunits

Appraisal NOI
yield

No. ofreasableunits

A-46 S-FORT
Kamiyashiro

Location

Kita-ku,
Osaka-shi

22 units

Acquisition
priceAppraisal NOI
yield
6.9%

Close to universities

M

Appraisalvalue(million yen)(million yen)

1,150

1,270

Shiraishi-ku,
Sapporo-shi
24 units
Feb.2005
Appraisal NOI
yield
5.7%

Nakano-ku,
Tokyo
61 units
Aug.2008
Appraisal NOI
yield

Close to medical institution

5.1%

17

Internal Growth

Changes in the Occupancy Rates by Area
Occupancy rate for the entire portfolio has risen 2.6 point from thetime of IPO. Currently it stably keeps over 95%.
Began managementwith 28 properties
On July 1, 2015

Averageoccupancy
rate

93.8％

95.3％

1st Fiscal
Period(January 31,
2016)

2nd Fiscal Period(July 31, 2016)

Occupancy rate(%)

1st Fiscal Period(January 31,
2016)

96.5％
3rd Fiscal Period(January 31, 2017)

2nd Fiscal Period(July 31, 2016)

3rd Fiscal Period(January 31,
2017)

4th Fiscal Period(July 31, 2017)

96.4％

96.2％

95.6％

94.9％

4th Fiscal Period(July 31, 2017)

5th Fiscal Period(January 31, 2018)

6th Fiscal Period(July 31, 2018)

7th Fiscal Period(January 31, 2019)

5th Fiscal Period (January 31, 2018)

6th Fiscal Period (July 31, 2018)

7th Fiscal Period (July 31, 2019)30-Jun31-Jan31-Jul

31-Jan31-Jul31-Aug 30-Sep

31-Oct 30-Nov 31-Dec

31-Jan28-Feb31-Mar30-Apr 31-May 30-Jun

31-Jul31-Aug 30-Sep

31-Oct 30-Nov 31-Dec

31-JanMajor regional cities

92.7

95.6

95.3

97.8

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

94.2

94.3

94.6

94.4

95.0

95.4

Other regional cities

93.8

95.3

95.2

96.9

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

95.0

95.6

95.0

94.3

93.7

95.1

Greater Tokyo area

92.5

93.5

96.2

96.7

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

96.2

96.7

96.2

96.5

95.8

96.1

Overall

92.8

95.2

95.4

97.5

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

94.7

95.0

95.0

94.7

94.8

95.4

(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 August 2018 to end of January 2019 exclude recently completed S-FORT Niigata Honcho. Also, the occupancy rate for end of January 2019 does not include S-FORT Suminodo
which desposed on January 31, 2019.

18

Internal Growth

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

1st Fiscal
Period(January 31,
2016)

1st Fiscal Period

Rent unit price after adjustment (January 31, 2016)
End of June 2015=100

4th Fiscal Period(July 31, 2017)

3rd Fiscal Period(January 31, 2017)

2nd Fiscal Period(July 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)

5th Fiscal Period (January 31, 2018)

6th Fiscal Period(July 31, 2018)

7th Fiscal Period(January 31, 2019)

6th Fiscal Period (July 31, 2018)

7th Fiscal Period (January 31, 2019)30-Jun31-Jan31-Jul

31-Jan31-Jul31-Aug30-Sep31-Oct30-Nov

31-Dec31-Jan28-Feb31-Mar30-Apr31-May30-Jun31-Jul31-Aug30-Sep31-Oct30-Nov

31-DecMajor regional cities

100.0

100.2

100.5

100.6

101.0

101.0

101.1

101.1

101.2

101.2

101.2

101.0

101.1

101.2

101.2

101.5

101.5

101.4

101.4

101.5

101.5

101.5

31-Jan101.6

Other regional cities

100.0

100.0

100.2

100.5

101.0

101.0

101.1

101.1

101.1

101.2

101.2

100.5

100.7

100.8

100.9

101.0

101.0

101.0

101.1

101.1

101.2

101.2

101.3

Greater Tokyo area

100.0

100.1

100.4

100.4

100.7

100.7

100.8

100.9

100.9

100.9

100.9

100.4

100.6

100.6

100.6

100.6

100.7

100.7

100.7

100.8

100.8

100.8

100.8

Overall

100.0

100.1

100.5

100.5

100.9

101.0

101.1

101.1

101.1

101.2

101.2

100.8

100.9

101.0

101.1

101.2

101.2

101.2

101.2

101.3

101.3

101.3

101.4

(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 wascalculated through simple averaging of unit rent after adjustment of each property in accordance with the number of properties in the relevant area in the presentation materials
until the 4th fiscal period. However, starting in the 5th fiscal period, such is calculated through weighted averaging of unit rent after adjustment of each property in accordancewith the contracted area ratio of each property in the relevant area.

19

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 57.2%■ 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%35 units

Total 584 units

167 units

30 units

600

Total 387 units
500

400

300

200

100

0

【6th fiscal period】

 Number of tenant replacements decreased
from the previous period when there weremany tenant replacements resulting fromentry to schools and companies.
 Continue to increase rent throughnegotiations upon tenant replacement andreceiving key money【7th fiscal period】[Breakdown of increase through negotiation
cases/total number of increased cases]

Increases of 5% or lessDecrease of 5% or lessTotal 679 units

700

151 units
95 units
34 units

69 units

Decrease
181 units/31.0%(-21 units/-1.2%)

Unchanged
69 units/11.8%(-26 units/-2.2%)

101 units
51 units

268 units

234 units

69 units
5th fiscal period(As of January 31,
2018)

Increase
334 units/57.2%(-48 units/+0.9%)

132 units
114 units

100 units

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

7th fiscal perio(As of January 31,
2019)

7th fiscal period[Increase factors](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

(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(5) Increase due to installation offurniture/home appliances

182 cases
17 cases
96 cases
53 cases
4 cases[Decrease factors/total number ofdecreased cases](1)Decrease due to review ofrent balance(2) Decrease due to rent gap(3) Decrease due to not receiving
key money

34 cases
57 cases
90 cases20

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
1,300 units
1,100 units

94.3%

No. of renewals
92.2%

92.0%
89.3%

700 units

526 units

500 units

92.1%

91.9%

646 units

657 units

1,179 units

816 units

90.0%
88.0%
86.0%

493 units

84.0%

300 units
100 units

94.0%
92.0%

91.2%

913 units

900 units

Renewal rates

82.0%
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)

7th Fiscal Period(January 31, 2019)

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

24,000433 units

21,000(36.7%)

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）

333 units(41.6%)
12,566（37）(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)

7th Fiscal Period(January 31, 2019)21

Internal Growth

Initiatives in the 7th Period◆ Leasing measures for increasing earnings[Renovation of common areas in line with thelocation of property and tenant attributes]
S-FORT Tamagawagakuen-mae

To use wallpaperwith different
images on each floor

Changing the appearance to a bright common areawith a playful spirit on each floor in line with thedistinctive exterior and locational characteristics of
having high demand from students.

S-FORT Motohama(renovation of living room)
Intending to differentiate theproperty from others throughdesigner’s renovation “Renotta”.

Renovation ofdeteriorated floor
due to aging (2F)

S-FORT Nishinomiya(renovation of kitchen)
Increasing the number ofburners from 1 to 2 andtransforming the kitchen tohave excellent usability for
those cooking their own
meals.

(Note) The above picture is appearance after renovation◆ Cost reduction through the utilization of
Samty Group
Obtained an estimate from multiple companies including
Samty Property Management Co., Ltd. upon large-scaleconstruction work. Selected the supplier bycomprehensively taking into account the expenses,
construction process and characteristics of properties.

S-FORT Tsutsujigaoka Koen
(repair work of exterior tiles)

S-FORT Funabashi Tsukada(rooftop waterproofing work)

・ Amount estimated by Samtyʼs
PM Company
27,000 thousand yen (adopted)
・ Amount estimated by A
30,500 thousand yen(+3,000 thousand yen)･ Amount estimated by B
28,500 thousand yen(+1,000 thousand yen)・Amount estimated by Samtyʼs
PM Company
7,300 thousand yen (adopted)
・Amount estimated by A
7,500 thousand yen(+200 thousand yen)・Amount estimated by B
7,700 thousand yen(+400 thousand yen)・Amount estimated by C
9,857 thousand yen(+2,557 thousand yen)

◆ Measures for damage caused by earthquake and typhoon
Swiftly conducted repair work in cooperation with the local managementcompany to ensure security and safety of tenants although damage to someproperties due to the earthquake and typhoon that occurred during the 7th
fiscal period was identified.

[Damage caused by
Typhoon Iburi Earthquake]

S-FORT Nishinomiya Uegahara(collapse of exterior fence)[Damage caused by the Hokkaido
Eastern Iburi Earthquake]
S-FORT Toyohira Sanjyo(separation of exterior tiles)

22Internal Growth

Future measures for leasing (1)◆ Properties with low occupancy in the current fiscal period and future improvement plans
Property
name/location

B-01
S-FORT
Shizuoka
Hondori(Shizuoka
City)

A-18
S-FORTAoi 1-Chome(Nagoya City)

A-29
S-FORT
Miyamachi(Sendai City)

C-20
S-FORT
Kashiwa(Chiba)Occupancy
Schedule
Target offorrate as ofoccupancy
achieving
the end of
rate
goal
January

71.4%

81.5%

82.6%

84.1%

Cause of low occupancy

Improvement measures

90.0%-Preparing two model rooms by layout type andemphasizing the appeal of the layout and width-Width and open space of the property do not appeal -Aiming to take in demand from corporations by preparing
2
a plan with furniture and home appliances
efficiently and needs for a layout of over 30 m
-Scheduled to renovate the interior of the roomcannot be met.
End of April -Needs from corporations in autumn were not(two patterns)
2019→Full renovation of living room (Renotta)
sufficiently taken in→Installing an accent cloth at the partition of the closet wall
-The number of vacant parking lots within the site
-Aiming to strengthen relations with corporate brokerage
was insufficient and customers with demand forcompanies in the Greater Tokyo area with track records andparking lots were not attracted
take in demand from corporations in early spring-Aiming to secure parking lots outside the site in its vicinity

91.0%-Intending to differentiate the property from competitive
properties through renovation-Differentiation was insufficient for 1LDK with layouts→Introducing ceiling light projectors
similar to competitive properties in the vicinity-Taking in demand from corporations by preparing a planEnd of April -Needs for movements of corporations inwith furniture and home appliances2019
autumn were not taken in due to continuous-Conducting a campaign limited to brokerage companies withcancellation of lease contracts from Octobertrack records in corporate customer contracts
onwards-Increasing the number of flat parking lots and large
motorcycle parking spaces

93.5%

・Differentiation from competitive properties
in the vicinity with similar price range of rent
End of April was insufficient・Failed to make progress in the planned
2019
renovation work of the entrance and common
area and attractiveness of S-FORT brand wasinsufficient-Intending to solicit price-sensitive customers by preparing
a plan with reduced initial costs-Taking in needs for job transfers in spring by preparing
a plan with furniture and home appliances-Thoroughly informing brokerage companies that it is a rare,
pet-friendly property in Sendai-Improving the brand image by conducting renovation workon the entrance and common area at an early stage

95.0%

・Taking time to refill vacancies due to continuous
cancellation of lease contracts from September
onwards
End of April ・Insufficient lighting at the entrance giving
2019
a dark impression
・Failed to differentiate the property from others
as added value corresponding to the rent level
was not provided in terms of facilities-Re-strengthening relations with brokerage companies withtrack records in concluding contracts-Adopting LED lighting at the entrance-Introducing uninstalled free internet facility-Conduct replacement to the latest delivery boxes,
improving functions and increasing the number of boxes→Occupancy rate is expected to reach 100% at the end of March

23

Internal Growth

Future measures for leasing (2)◆ Properties with low occupancy in the current fiscal period and future improvement plans
Property
name/location
A-39
S-FORT
Kobe
SannomiyaKita(Kobe City)

C-17
S-FORT
Kawaguchi
Namiki(Saitama)

B-12
S-FORT
Mito Chuo(Ibaraki)

B-11
S-FORT
Nishinomiya
Uegahara(Hyogo)Occupancy
Target ofrate as ofoccupancy
the end ofrate
January

86.7%

88.5%

88.7%

88.7%

93.0%

Scheduleforachieving
goal

Cause of low occupancy

End of April -Failed to differentiate the property from properties
2019
with the same grade and low rent in its vicinity-Taking time to refill vacancies due to multiple
cancellations of lease contracts from September
onwards-Needs from customers with the same rent range
were not sufficiently taken in

Improvement measures-Intending to improve the grade inside the room by renewing
facilities such as the kitchen, air conditioner and bathroom
drying/heating system-Conducting a campaign to reduce initial costs within a limited
period to take in demand before the peak season→Occupancy rate is expected to reach 95.0% at the end of March-Considering flexible responses in line with the needs of eachcompany by targeting the use of corporate housing for new
employees in spring-Strengthening sales activities toward brokerage companies
specializing in brokerage of foreign customers as the property is
located in an area with many foreign customers-Placing drawings and area maps in living rooms that can beviewed and enhancing the appeal to customers who come theviewing event→Occupancy rate is expected to reach 96.0% at the end of March

95.0%

End of April
2019

93.0%

-Failed to accommodate needs despite high demand
for the conclusion of lease contracts of competitive
properties in the vicinity along with parking lots
End of April in the vicinity
2019-Failed to refill vacancies due to continuous
cancellation of lease contracts from September
onwards while the peak season for family-type units
concentrates in spring-Taking in demand during the peak season by conducting a
campaign to conclude lease contracts of the property along withthe parking lot only for those who apply at the end of February-Setting a plan to reduce initial costs only for those who apply atthe end of February-Installing ceiling lights at vacant units and intending to improve
the image at the viewing event→Occupancy rate is expected to reach 92.0% at the end of March

98.0%-Failed to refill vacancies in time as the property is
an apartment for students and lease contracts wereEnd of April cancelled one after another after the peak season inspring2019
・Acquisition of potential customers was insufficientdue to the implementation of a campaign to reduce
prices in the vicinity.

・Planning campaigns, etc. in case of cancellations of lease
contracts after spring→While lease contracts for 20 rooms are expected to becancelled by the graduation season in spring, the occupancy rateis expected to reach 98.0% at the end of March24

Internal Growth

Future measures for leasing (3)◆ Properties with low occupancy in the current fiscal period and future improvement plans
Property
name/location
A-37
S-FORT
HakataHigashi I(Fukuoka City)

A-19
S-FORT
Aoi(Nagoya City)

Occupancy
Target ofrate as ofoccupancy
the end ofrate
January

88.8%

89.3%

Scheduleforachieving
goal

Cause of low occupancy

Improvement measures

96.2%-Failed to take in the needs from corporate customers -Aiming to secure parking lots outside the site in the vicinity
with the same rent range(also considering external leasing according to the occupancy
End of April-The number of vacant parking lots within the site
status of S-FORT properties in the vicinity)
2019
was insufficient and customers with demand for-Aiming to take in demand from corporations by preparing
parking lots were not attracted
a plan including furniture and home appliances

92.5%-The number of parking lots within the site and-Securing parking lots outside the site in the vicinity
parking lots outside the site in the vicinity was-Intending to change lighting, etc. and enrich facilities by
insufficient and needs for concluding lease contracts
installing small articles in each room (mainly on the lower
End of April of the property along with the parking lot were nofloors with many vacant rooms)
2019
sufficiently taken in-Reviewing the rent balance of the upper and lower floors-Differentiation of the property from competitive-Thoroughly inviting people to viewing events of model rooms
properties in the surrounding area was insufficientcurrently being established and proposing the life image
in terms of facility, etc.

25

Financial Strategy

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

End of 4th
period（July 31, 2017）

End of 5th
periodEnd of 6th
period（January 31, 2018）

End of 7th
period（July 31, 2018）（January 31, 2019）

Total interestbearing debt

28.7
billion yen

28.6
billion yen

28.4
billion yen

44.6
Billion yen

48.9
Billion yen

Average remaining
borrowing period

2.7 years

2.3 years

2.2 years

2.8 years

2.6 years

Ratio oflong-term debt (1)long-term debt (2)

98.1%

98.6%

99.3%

100.0%

100.0%

98.1%

81.1%

90.5%

88.8%

78.3%

Ratio of fixed debt

18.1%

18.2%

18.3%

30.5%

30.5%

Total asset
based LTV

51.5%

51.5%

51.4%

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
Borrowings (existing)(million yen)

8,000

3,100

Borrowings (new)Investment corporation bonds (private）※Scheduled to borrow on March 29, 2019

1,000

6,000
4,000
2,000
0

5,000

8th
period
July
2019

5,600

9th
periodJanuary
2020

4,000
10th
period
July
2020

5,600

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

3,000

15th
periodJanuary2023

16th
period
July
2023

17th
periodJanuary
2024

1,250
1,300
18th
period
July
2024

19th
periodJanuary2025

20thperiod
July
2025

21th
periodJanuary2026

26◆有利子負債の内訳（2019年1月31日時点）
Financial Strategy

Financial highlight◆ Status of Interest-Bearing Debt

◆ Lender Formation (As of January 31, 2019)(As of January 31, 2019)

Financial institution
City
banks
Major
banks

Regio
nal
banks

Insurancecompany

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%

48,900100.0％

Investment corporation
bonds
Total
（Note)

Interest-bearingdebt

New lenders are highlighted in light red.

Investment corporation bonds (private)[First][Second]
Total issue
amount1 bilion yen 1 billion yen
Maturity
4 years
5 years
Underwriter DBJ Securities Co., Ltd.

Regional banks
17 banks(49.1％)■Aim to continuously transact with city banks and majorbanks as well as cooperate with regional banks to increase
the number of lenders.

■Change in floating borrowing spread(Spread：%)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)

0.80%

0.80%

0.80%

(Maturity：year)
6.0

5.5

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

27

Appraisal Value Status◆ Change in Unrealized gain

◆ Summary of Appraisal Value(million yen)

End of 7th fiscal period
No. ofpropteties

Book value

Appraisal
value

Unrealized
gain

5,000
Cap Rate(million yen) (million yen) (million yen)

Major regional
cities48

Other regional
cities22

51,09454,527

3,433

4,000
3,000

4.8%

2,000
1,000

20,142

20,315

173

5.2%

0
(1,000)Greater Tokyo
area

22

19,52520,478

953

4.6%

Total

92

90,761

95,320

4,559

4.8%

◆ Appraisal Value Status and Cap Rate Status
No. of properties◆ Change in Cap Rate of properties
acquired in the 1st fiscal period
6.4%
6.0%

End of 7th fiscal period

UpwardEnd of 1st End of 2nd End of 3rd End of 4th End of 5th End of 6th End of 7th
fiscalfiscalfiscalfiscalfiscalfiscalfiscalperiodperiodperiodperiodperiodperiodperiodChange in Appraisal Value

Change in Cap Rate

40

0

5.6%
5.2%
4.8%

Unchanged

Downward

41

0

42

4.4%

39

End of 1st End of 2nd End of 3rd End of 4th End of 5th End of 6th End of 7th
fiscalfiscalfiscalfiscalfiscalfiscalfiscalperiodperiodperiodperiodperiodperiodperiodMajor regional cities(Note) S-FORT Suminodo, which has been sold, is not included in the change in cap rate of assets acquired in the 1st fiscal period.

Other regional cities

Greater Tokyo area28

４. Future Growth Strategy

Growth Strategy・Managed Target
1

External
growth strategy

Internal
growth strategy
Financialstrategy

2

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

3

Acquire properties by taking advantage of the proprietary channels of the asset
management company

4

Implement the differentiated portfolio development policy

12Enhance the asset value and rate of return through reviewing existing facilities
and other measures
Reduce operating costs

1

Lengthen borrowing periods and reduce cost of debt

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

2 Expand the bank formation
3 Improvement of credit rating◆ Change in Asset size・Management Target(Based on acquisition price)

1,500

1,000

500

305

4

309

Aim to achieve the asset size of 100
billion yen over the medium term

Acquired credit rating from JCR
A- (Stable)

205 515299 815 81 -14

882

55 -28908 1,000

0Assets at IPO Asset acquired Assets at end of Assets acquired Assets at end of
Feb. toMar. 2018
Assets acquired Assets sold in Assets at end of
AssetsAssetsAssets at end of(28 properties) in 1st Period
1st Period
through PO in
4th Period
Mar.2018
After capitalthrough PO in
7th Period
7th Period
scheduled to be scheduled to be
8th Period(1 property) (29 properties)
Aug. 2016(49 properties) Capital increase
increaseAug. and Nov. (1 properties) (92 properties) acquired onsold on Jul.
Assumption(20 properties)
through third- through third2018
Feb./Mar.
(1 property) (96 properties)(billion yen)
party allotment party allotment (11 properties)(5 properties)
Acquired(82 properties)
properties(33 properties)

30

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).
Owned properties

Close touniversities

Close to universities and medical
institutions

Major regional cities

S-FORT
Katahira

S-FORT
Gakuenmae

S-FORT
Toyohira Sanjo

S-FORT
Kamiyashiro

S-FORT
FukuokaKencho Mae

S-FORT
Hokudai mae

S-FORT
Tsurumai cube

S-FORT
Tsurumai reale

S-FORT
Tsurumicho

S-FORT
Aoba Kamisugi

New properties acquiredin 7th fiscal period

New properties
scheduled to be acquiredin 8th fiscal period

Close to medical
institutions

Fixed-rent ML

S-FORT
Chion-inmae

S-FORT
Rokuban-cho

S-FORT
Kitamaruyama

S-RESIDENCE
Koe Motomachi

Fixed-rent ML

Other regional cities

Fixed-rent ML

Fixed-rent ML

S-FORT
Saga Honjo
S-FORT
Nishinomiya
Uegahara

S-FORT
Saga Idaimae

S-FORT
Mie Daigakumae

S-FORT
Niigata Honcho

S-FORT
Suizenji

S-FORT
Kumadaibyoinmae

S-FORT
Kumamoto
Senba

S-FORT
Oita Ekimae
S-FORT
Takasagomachi

S-FORT
Motohama

S-FORT
Nishinomiya

S-FORT
Kumamoto
Gofuku machi

Fixed-rent ML

GreaterTokyo area

S-FORT
Ichikawa

S-FORT
Hoya

S-FORT
Tamagawa
Gakuen mae

S-FORT
Kashiwa

S-FORT
Noborito

S-FORT
Sagamihara

S-RESIDENCE
Yokosuka Chuo

31

External Growth

External growth strategy◆ Status of pipeline(Note) Acquisition of any properties described on this page has not been decided as of the date of this document.
Property Nmae

A

【Developed】【Owned/Warehousing】

Location(Scheduled)Completiong date

Area

①

S-RESIDENCE Nishi-ku Minami Horie 3 cho-me PJ

Nishi-ku, Osaka City

55 units

2020

Major regional cities②

S-RESIDENCE Kita-ku Nishi Temma 3 cho-me PJ

Kita-ku, Osaka City

180 units

2020

Major regional cities③

S-RESIDENCE Fukushima-ku Ebie 1 cho-me II PJ

Fukushima-ku, Osaka City

169 units

2020

Major regional cities④

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

Kita-ku, Nagoya City

105 units

2020

Major regional cities⑤

S-RESIDENCE Higashi-ku Aoi 3 cho-me PJ

Higashi-ku, Nagoya City

95 units

2020

Major regional cities⑥

S-RESIDENCE Naka-ku Kamimaezu 2 cho-me PJ

Naka-ku, Nagoya City

56 units

2020

Major regional cities⑦

S-RESIDENCE Taito-ku Taito 2 cho-me II PJ

Taito-ku, Tokyo

74 units

2020

Greater Tokyo area⑧

S-RESIDENCE Nerima-ku Asahicho 3 cho-me PJ

Nerima-ku, Tokyo

61 units

2020

Greater Tokyo area⑨

S-RESIDENCE Chiyoda-ku Higashi Kanda 2 cho-me PJ

Chiyoda-ku, Tokyo

51 units

2020

Greater Tokyo area⑩

Samty Ohori Koen

Chuo-ku, Fukuoka City

50 units

1997

Major regional cities⑪

Samty Meinohama

Nishi-ku, Fukuoka City

49 units

2006

Major regional cities⑫

Excellence Sakurayama

Mizuho-ku, Nagoya City

59 units

2007

Major regional cities⑬

Samty Residence N15

Higashi-ku, Sapporo City

55 units

2014

Major regional cities⑭

S-GLANZ Osaka Doshin

Kita-ku, Osaka City

36 units

2015

Major regional cities⑮

Elegance Itami

Itami-shi, Hyogo

43 units

1997

Other regional cities⑯

K Ryokuchi

Suita-shi, Osaka

88 units

1998

Other regional cities⑰

Samty Pario Umekage

Konan-shi, Shiga

180 units

2006

Other regional cities⑱

Samty Tsukaguchi Residence

Amagasaki-shi, Hyogo

49 units

2009

Other regional cities⑲

Samty Esaka LIBERTS

Suita-shi, Osaka

24 units

2008

Other regional cities

Total 19 properties■K Ryokuchi

No. of units■Excellence
Sakurayama■Samty Pario
Umekage

1,479 units■S-GLANZ
Osaka Doshin■Samty Tsukaguchi
Residence■SamtyMeinohama

32

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 awareness33

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 rating34

５. Operating Results and Distribution Information

Management Forecast of the 8th and 9th Fiscal Periods
Assumptions for Management Forecast of the 8th
and 9th Fiscal Periods■ Calculation period
9th fiscal period
Difference
Difference
The 8th fiscal period :7th fiscal period 8th fiscal period
between 7th FP
Forecast
between 8th FP
February
1, 2019 to July 31, 2019
(January 31,
Forecast
results and 8th(January 31,
forecast and 9th
The 9th fiscal period :2019)(July 31, 2019)
forecast
2020)
forecast
August 1, 2019 to January 31, 2020
■ Asset (No. of acquired properties
3,216
3,649
+432
3,153
-495
as of the date of this document）
3,034
3,219
+185
3,153
-66
The 8th fiscal period：97(Note) properties
The 9th fiscal period : 96 properties
1,609
1,801
+191
1,712
-88
(million yen)

Operating revenue
Operating income
Operating expenses
Real estate rental expenses
Miscellaneous rental expenses

1,233

1,381

+147

1,282

433

481

+47

413

-99

■ Period average month-end occupancy rate
The 8th fiscal period：96.3%-7
The 9th fiscal period : 96.8%-22■Balance of interest-bearing debt at end of period
The 8th fiscal period：50,100 million yen+33
The 9th fiscal period：50,100 million yen+11■ No. of outstanding units-0(No. of investment units issued and outstanding+11
as of the date of this document)
The 8th fiscal period：504,100 units-407
The 9th fiscal period : 504,100 units-113 ■ Capital expenditures (planned amount)
The 8th fiscal period：102 million yen-521
The 9th fiscal period : 96 million yen-68

Taxes and dues

113

196

+82

188

Depreciation

686

703

+17

680

Real Estate rental income

1,800

1,838

+37

1,871

Other operating expenses

375

419

+43

430

Asset management fees

226

250

+24

250

Other expenses

149

168

+19

180

1,606

1,848

+241

1,440

-285

-216

+68

-330

1,321

1,631

+310

1,110

0

1

+0

1

Net income

1,320

1,630

+309

1,109

-521

Distribution per unit

3,076

3,722

+646

2,672

-1,050

2,620

3,234

+614

2,200

456

488

+32

472

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 8th and 9th fiscal periods are the figures disclosed in the“Summary of Financial Results for Fiscal Period Ended January 2019” announced on March 15, 2019.

(Note) Includes S-FORT Sanno which scheduled to be soldon July 31, 2019-

Difference factors between 7th FP
results and 8th forecast(yen)■ Real estate rental revenue-Increase in rental revenue due to theincrease in the number of properties-1,034+185 million yen-Increase in temporary income due torecording of gain on sale of real estate-16+247 million yen■ Non-operating income and loss
-Increase in temporary revenue due torefund of consumption tax+130 million yen-Increase due to borrowings related torefinancing and acquisition of new properties-60 million yen

36Outlook of Distribution◆ Continuing to pay stable distribution every fiscal period since listing
Aim to maintain/improve distribution level■Distribution policy
Distribution withpayout ratio aiming
for around 70%

Initial distribution

第2期

予想

実績
第3期

第4期

257

3,076
851

実績
第5期

2,260

2,213

予測

2,672
- 22

488

472

2,700

2,670
2,191

予想

456

468

484

2,670

実績

Amount ofincrease in
consumption tax

3,722

360

2,169

予想

of earnings per unit

2,681

2,675

501

2,138

2,026

Distribution in excess
利益超過分配金

distribution in excessof earnings)

2,670

2,625

2,600

実績

Temporary factors
due to refund of
consumption tax

507

592

予想

Temporary factors
due to sales ofproperties

2,645

2,618

(yen)

利益分配金
(Not including

distribution in excessof earnings)(excluding sales of properties
and refund of consumption tax)

2,478

Distribution per unit

当初予想分配金
forecast (including

実績
第6期

予測

実績
第7期

2,126

2,200

予測

予測

第8期

第9期

37

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 7th, 8th and 9th Fiscal Periods, Samty Residential determined that it is appropriate to conduct distributions
in excess 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

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

Investment that should help enhance
the portfolio’s profitability enhance38

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 ofearnings, the following requirements are to be fulfilled, taking into account Samty Residential’s financial
conditions, amount of future capital expenditures, etc., in order to avoid undermining unitholder value.

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

CAPEX for the

Total
appraisalvaluefollowing fiscal
periodTotal adjusted
book value(Note)

Expenses related
to rent business,sales, general andadministrative
expenses, nonoperating
expenses, etc

Rentalrevenue

Note: Excluding amount equivalent to incidental expenses upon acquisition(2) Determination of amountAmount of distributions (including distributions inexcess of earnings) are determined for each fiscal
period based on future capital expenditures, capitaldemand, etc.
Payout ratio = Total distribution amount (including distributions
in excess of earnings) / (Net income + Depreciation)）

Depreciation

Net income

Distribution inexcess of earnings

Distribute payout ratio
aiming for 70%

Distribution(profits)

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

39

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

Feature of Samty Residential Investment
Corporation’s 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 Corporation’s 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, aregranted to Samty Residential Investment Corporation by thesponsor. 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 9.1
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.

40

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 Office43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
15.9 billion yen(as of the end of November 2018)
Real estate businessBusiness description

Property leasing business

Overseas
investment
Overseas market Sales ofdeveloped
properties

Domestic market
Purchase
Samty Group

Condominiums
for investment

Condominium
sales companies

Number of employees

Net sales 84,274 million yen(fiscal year ending November 30, 2018)

Ordinary income 11,635 million yen(fiscal year ending November 30, 2018)

105 (as of the end of Novemer 2018)※207 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

Jul.
2007

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

Mar.
2016

Feb.
2011
Dec.
2011

Established Tokyo Branch Office
Established Samty Kanri Co., Ltd.
that is engaged in property
management business

Property and operation
management support

Samty Residential
Investment
Corporation

Leasing of
owned
properties

Recovery of development capital

Rental apartment/
Office buildings
Commercial facilities

Entrust asset and property
management service

Samty’s businessHistory and Business
Dec.
1982

Tenants

Provide development properties

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
Samty’s TV commercial
now beingbroadcasted!!

44

Condominium Brand “S-RESIDENCE”
in Samty Residential’s 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

45

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

LocationType■ Properties newly acquired (or scheduled to be acquired)on February 28, 2019 and March 29, 2019
▲ Properties scheduled to be sold on July 31, 2019
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
80

A-03

S-FORT Fujigaoka

Meitou-ku, Nagoya

Single

750

830

6.0

A-04

S-FORT Chikushi Dori

Hakata-ku, Fukuoka

Compact

1,170

1,230

5.4

90

A-05

S-FORT Fukuoka Kencho Mae

Hakata-ku, Fukuoka

Single

979

1,090

5.6

104

A-06

S-FORT Takamiya

Minami-ku, Fukuoka

Single / Commercial

A-07

S-FORT Tsutsujigaoka Koen

Miyagino-ku, Sendai

Single / Compact / Family

794

838

5.4

82

1,340

1,430

5.8

94
154

A-08

S-RESIDENCE Namba Briller

Naniwa-ku, Osaka

Single

2,020

2,370

5.2

A-09

S-FORT Tsurumai marks

Naka-ku, Nagoya

Family

1,020

1,270

5.8

42

A-10

S-FORT Rokuban-cho

Atsuta-ku, Nagoya

Single / Commercial

722

770

5.2

56

1,590

1,670

5.7

75

690

760

5.7

59

2,470

2,820

5.3

166

745

833

5.8

71

2,330

2,590

5.8

191

A-11

S-FORT Nakajima Koen

Chuo-ku, Sapporo

Compact / Family

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

462

490

5.7

48

A-17

S‐RESIDENCE Shin Osaka Ekimae

Higashi Yodogawa‐ku, Osaka

Single / Compact

2,489

2,810

5.0

167

A-18

S‐FORT Aoi 1‐Chome

Higashi‐ku, Nagoya

Compact

1,080

1,130

5.1

54

A-19

S‐FORT Aoi

Higashi‐ku, Nagoya

Family

870

992

5.4

28

A-20

S‐FORT Kurumamichi

Higashi‐ku, Nagoya

Family

400

438

5.7

19

A-21

S‐FORT Kamiotai

Nishi‐ku, Nagoya

Family

720

744

5.4

40

A-22

S‐FORT Tsurumai arts

Naka‐ku, Nagoya

Family

680

805

5.8

28

A-23

S‐FORT Tsurumai cubeNaka‐ku, Nagoya

Compact / Family

570

673

5.8

32

A-24

S‐FORT Fukuoka Higashi

Hakata‐ku, Fukuoka

Compact

1,900

2,040

5.3

135

A-25

S‐RESIDENCE Kobe Motomachi

Chuo‐ku, Kobe

Single / Compact

1,200

1,390

5.6

81

A-26

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 / Commercial

500

525

4.9

18

A-29

S‐FORT Miyamachi

Aoba‐ku, Sendai

Single / Compact

1,085

1,110

5.3

91

(Note) Appraisal value is based on the figures as of January 31, 2019 for the existing 92 properties and those as of January 1, 2019 for the 5 properties newly acquired.

46

Portfolio List (2) Major Regional Cities
List of acquired properties(Number of acquired properties as of the date of this document ）Property
No

Property Name

LocationType■ Properties newly acquired (or scheduled to be acquired)on February 28, 2019 and March 29, 2019
▲ Properties scheduled to be sold on July 31, 2019

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

2,040

5.1

A-31

S-FORT Tsurumai reale

Showa-ku, Nagoya

Compact / Family

1,571

1,700

5.0

148
56

A-32

S-FORT Osu Kannon

Naka-ku, Nagoya

Single / Compact

1,147

1,280

5.5

84

A-33

S-FORT Kita-Sanno

Nakagawa-ku, Nagoya

Compact

841

845

4.7

36

A-34

S-FORT Aratamabashi

Minami-ku, Nagoya

Compact

449

455

5.5

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

5.3

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

389

5.4

35

A-39

S-FORT Kobe Sannomiya-Kita

Chuo-ku, Kobe

Single

515

520

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

5.1

51

A-42

S-FORT Aoba Kamisugi

Aoba-ku, Sendai-shi

Compact

918

1,000

5.7

66

A-43

S-RESIDECE Shin Osaka Ridente

odogawa-ku, Osaka-shi

Single

1,338

1,420

4.6

90

A-44

S-FORT Fukushima La Luna

Kita-ku, Osaka-shi

Single / Compact

896

934

4.6

48

A-45

S-FORT Fukushima Libre

Fukushima-ku, Osaka-shi

Single

538

540

4.6

36

A-46

S-FORT Kamiyashiro

Meito-ku, Nagoya-shi

Single

429

431

5.7

42

A-47

S-RESIDENCE Miyanomori

Chuo-ku, Sapporo-shi

Family

660

682

5.4

22

A-48

S-FORT Higashi-Sapporo Nordo

Shiraishi-ku, Sapporo-shi

Compact

303

306

5.7

24

A-49

S-RESIDENCE Aoi

Higashi-ku, Nagoya-shi

Single

1,484

1,490

4.6

95

1,150

1,160

4.8

88

599

600

5.3

46

■

A-50

S-RESIDECE Shiga Hondouri

Kita-ku, Nagoya-shi

Single■

A-51

S-FORT Kobe Ogawadori

Hyogo-ku, Kobe-shi

Single / Compact(Note) Appraisal value is based on the figures as of January 31, 2019 for the existing 92 properties and those as of January 1, 2019 for the 5 properties newly acquired.

47

Portfolio List (3) Other Regional Cities
List of acquired properties(Number of acquired properties as of the date of this document ）Property
No

Property Name

Type

Location■ Properties newly acquired (or scheduled to be acquired)on February 28, 2019 and March 29, 2019
▲ Properties scheduled to be sold on July 31, 2019

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

297

311

5.8

28

B-03

S-FORT Yokkaichi motomachi

Yokkaichi-shi, Mie

Compact

480

551

6.9

54

B-04

S-FORT Suzuka

Suzuka-shi, Mie

Compact

B-05

S‐RESIDENCE Esaka

Suita‐shi, Osaka

Single / Compact

580

626

6.8

69

2,323

2,560

4.9

138
52

B-06

S‐FORT Utsunomiya

Utsunomiya‐shi, Tochigi

Compact

612

653

5.9

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

6.0

127

B-09

S‐FORT Saga Idaimae

Saga‐shi, Saga

Compact

B-10

S-FORT Nishinomiya

Nishinomiya-shi, Hyogo

Single / Compact

375

402

6.5

46

1,412

1,510

5.2

102

B-11

S-FORT Nishinomiya Uegahara

Nishinomiya-shi, Hyogo

Single

789

813

5.0

62

B-12

S-FORT Mito Chuo

Mito-shi, Ibaraki

Family

1,807

1,840

5.5

80
69

B-13

S-FORT Tsu Shinmachi

Tsu-shi, Mie

Compact

767

836

6.2

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

1,030

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

290

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

793

4.9

48

B-22

S-FORT Niigata Honcho

Chuo-ku, Niigata

Compact

960

968

5.6

83

B-23

S-FORT Motohama

Naka-ku, Hamamatsu

Single

239

241

6.0

34

B-24

S-FORT Kumamoto Gofukumachi

Chuo-ku, Kumamoto-shi

Single / Compact

599

604

5.8

54

(Note) Appraisal value is based on the figures as of January 31, 2019 for the existing 92 properties and those as of January 1, 2019 for the 5 properties newly acquired.

48

Portfolio List (4) Greater Tokyo Area
List of acquired properties(Number of acquired properties as of the date of this document ）Property
No

Property Name

LocationType■ Properties newly acquired (or scheduled to be acquired)on February 28, 2019 and March 29, 2019
▲ Properties scheduled to be sold on July 31, 2019

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

1,080

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

692

4.8

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

705

4.8

40

C-06

S-FORT Shonan Hiratsuka

Hiratsuka-shi, Kanagawa

Single

818

982

5.8

66

C-07

S-FORT Nishifunabashi

Funabashi-shi, Chiba

Single / Compact

C-08

S-FORT Maihama

Urayasu-shi, Chiba

Single

732

784

5.1

47

1,130

1,230

5.2

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

758

5.7

60

C-13

S-FORT Tamagawagakuen-mae

Machida-shi, Tokyo

Single

587

609

4.9

45

C-14

S-FORT Tsurukawa

Machida-shi, Tokyo

Family

520

537

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

955

4.8

62
117

C-19

S-FORT Funabashi Tsukada

Funabashi-shi, Chiba

Compact

1,900

1,940

5.0

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

1,310

5.1

61

C-22

S-RESIDENCE Matsudo

Matsudo-shi, Chiba

Single

840

854

4.6

52

C-23

S-RESIDENCE Motoyawata

Ichikawa-shi, Chiba

Single

1,678

1,680

4.6

100

93,732

100,854

5.4

6,717

97 properties(Note) Appraisal value is based on the figures as of January 31, 2019 for the existing 92 properties and those as of January 1, 2019 for the 5 properties newly acquired.

49

Income and Expenditure by Property (1)Fiscal Period Ending January 2019 (As of January 31, 2019)(1) Area category

Major regional cities(2) Property No.

A-01

A-02

(3) Property nameShin Osaka

S-FORT
ravir(4) Acquisition date
(5)
Price
information(6)
Leasing
information

S-FORT

S-FORT

S-FORT

S-FORT

Sanno

Fujigaoka

Chikushi Dori

A-07
S-FORT

S-FORT

FukuokaTsutsujigaoka

Takamiya

Kencho Mae

A-08

Koen

S-RESIDENCE
Namba Briller

Apr-15, 2015

Apr-15, 2015

Apr-15, 2015

May-01, 2015

Apr-15, 2015

May-01, 2015

Apr-15, 2015

Jul-01, 2015

635

2,890

750

1,170

979

794

1,340

2,020

(%)

0.7

3.3

0.9

1.3

1.1

0.9

1.5

2.3

(million yen)

632

2,879

727

1,162

981

783

1,375

2,041

(㎡)

1,290.84

8,138.40

1,960.00

3,706.56

2,566.72

2,105.13

3,609.49

3,631.60

Leased area(㎡)

1,290.84

7,522.54

1,813.00

3,664.96

2,468.00

2,080.29

3,407.07

3,375.68

Occupancy rate(%)

100.00

92.43

92.50

98.88

96.15

98.82

94.39

92.95

184

184

184

184

184

184

184

184

22,761,016

107,336,555

27,912,431

43,418,997

36,748,345

28,317,611

51,644,298

65,415,937

Real estate rental revenues

20,851,177

98,058,542

26,134,247

39,647,553

34,741,462

27,090,931

45,737,771

61,269,144

Other lease business revenues

1,909,839

9,278,013

1,778,184

3,771,444

2,006,883

1,226,680

5,906,527

4,146,793

5,040,936

24,516,559

5,460,490

10,434,556

7,789,362

6,401,899

10,935,719

16,215,501

Management service fee

1,180,401

5,690,180

1,358,545

1,525,179

1,490,577

1,246,127

2,217,943

2,511,491
4,635,222

Balance sheet amount
Total rentable area

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

A-06

Composition rate

(thousand yen)

information

A-05(million yen)

(2) Total real estate rental income

Income andA-04

Acquisition price(1) Number of operating days

(7)

A-03

Taxes and dues

1,316,518

8,129,098

1,980,946

2,996,606

2,423,504

2,029,378

2,858,942

Utilities expenses

233,640

895,147

293,164

463,435

380,810297,274

1,671,878

755,812

Repair Cost

794,280

4,774,000

708,000

2,787,565

1,527,890

1,067,120

1,863,240

3,123,263

Insurance expenses

33,802

179,192

46,552

94,68862,79061,544

83,484105,182

Trust fees

303,877

303,877

303,877

303,877

303,877

303,877

303,877

320,724

1,178,418

4,545,065

769,406

2,263,206

1,599,914

1,396,579

1,936,355

4,763,807(4) NOI(＝(2)-(3))

Other lease business expenses(thousand yen)

17,720,080

82,819,996

22,451,941

32,984,441

28,958,983

21,915,712

40,708,579

49,200,436(5) Depreciation(thousand yen)

4,678,592

26,782,686

10,178,409

10,890,955

9,280,900

8,814,702

12,360,353

13,851,054

13,041,488

56,037,310

12,273,532

22,093,486

19,678,083

13,101,010

28,348,226

35,349,382

0

797,168

464,576

669,412278,745-

29,036,070-

17,720,080

82,022,828

21,987,365

32,315,029

28,680,238

21,915,712

11,672,509

49,200,436(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

50Income and Expenditure by Property (2)Fiscal Period Ending January 2019 (As of January 31, 2019)(1) Area category

Major regional cities(2) Property No.

A-09(3) Property name(4) Acquisition date
(5)
Price
information(6)
Leasing
information

S-FORT

S-FORT

S-FORT

Rokuban-cho

Nakajima Koen

Hokudai Mae

A-14
S-FORT

A-15

Kobe

Kyoto

Isogamidori

Nishioji

A-16

S-FORT

S-FORT

Katahira

Gakuenmae

Jul-01, 2015

Jul-01, 2015

Jul-01, 2015

Jul-01, 2015

Jul-01, 2015

Jul-01, 2015

Jul-01, 2015

Oct-01, 2015

1,020

722

1,590

690

2,470

745

2,330

462

(%)

1.2

0.8

1.8

0.8

2.8

0.8

2.6

0.5

(million yen)

1,052

714

1,634

706

2,488

751

2,288

473

(㎡)

2,772.00

1,833.29

5,292.65

2,287.22

4,372.45

1,657.31

5,483.22

1,757.28

Leased area(㎡)

2,706.00

1,740.86

4,777.87

2,144.22

4,372.45

1,575.40

5,134.37

1,634.11

Occupancy rate

(%)

97.62

94.96

90.27

93.75

100.00

95.06

93.64

92.99

184

184

184

184

184

184

184

184

36,338,287

24,335,136

60,275,723

24,256,051

86,214,843

28,071,089

84,577,638

15,857,514

Real estate rental revenues

32,670,688

22,557,550

55,333,331

23,135,469

79,666,144

25,340,311

78,347,045

14,767,746

Other lease business revenues

3,667,599

1,777,586

4,942,392

1,120,582

6,548,699

2,730,778

6,230,593

1,089,768

6,663,747

5,505,387

14,123,589

5,596,107

12,438,176

6,655,369

18,774,021

4,131,389

Balance sheet amount
Total rentable area

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

S-FORT
Tsurumai marks

A-13
S-RESIDENCE

Composition rate

(thousand yen)

information

A-12(million yen)

(2) Total real estate rental income

(7)

A-11

Acquisition price(1) Number of operating days

Income and

A-10

Management service fee

1,756,461

1,251,006

2,657,653

1,007,964

2,745,926

1,692,693

4,228,513

745,182

Taxes and dues

1,576,622

1,652,000

4,799,476

1,571,956

5,026,362

1,443,196

6,268,394

1,283,300

Utilities expenses

221,509172,140954,332

287,867

533,146

1,002,303

723,422238,140
745,000

Repair Cost

915,592

931,180

3,204,700

788,000

1,402,417

1,179,080

4,707,878

Insurance expenses

56,03839,062

122,106

53,620117,734

45,714

146,80234,558Trust fees

303,877

303,877

320,724

303,877

320,724

303,877

303,877

283,618

1,833,648

1,156,122

2,064,598

1,582,823

2,291,867

988,506

2,395,135

801,591(4) NOI(＝(2)-(3))

Other lease business expenses(thousand yen)

29,674,540

18,829,749

46,152,134

18,659,944

73,776,667

21,415,720

65,803,617

11,726,125(5) Depreciation(thousand yen)

9,707,556

7,478,915

14,318,711

5,302,629

18,377,264

6,494,575

23,303,519

4,777,859

19,966,984

11,350,834

31,833,423

13,357,315

55,399,403

14,921,145

42,500,098

6,948,266-

111,920

8,998,674-

438,180-

2,176,246

2,402,073

29,674,540

18,717,829

37,153,460

18,659,944

73,338,487

21,415,720

63,627,371

9,324,052(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

51Income and Expenditure by Property (3)Fiscal Period Ending January 2019 (As of January 31, 2019)(1) Area category

Major regional cities(2) Property No.

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

Acquisition price(million yen)

Composition rate

Ekimae1‐ChomeAug-02, 2016

Aug-01, 2016

Aug-02, 2016

Aug-01, 2016

Aug-01, 2016

Aug-02, 2016

Aug-02, 2016

Aug-02, 2016

2,489

1,080

870

400

720

680

570

1,900

A-21

A-22

A-23

A-24
S‐FORT

S‐FORT

S‐FORT

S‐FORT

S‐FORT

S‐FORT

Aoi

Kurumamichi

Kamiotai

Tsurumai arts

Tsurumai cube

Fukuoka
Higashi

2.8

1.2

1.0

0.5

0.8

0.8

0.6

2.2

1,129

925

415

764

726

587

1,963

Total rentable area(㎡)

4,534.98

2,185.20

1,842.68

1,214.20

2,624.40

1,988.56

1,460.64

5,584.41

Leased area(㎡)

4,534.98

1,781.18

1,645.25

1,214.20

2,558.79

1,988.56

1,419.93

5,241.27

Occupancy rate(%)

100.00

81.51

89.29

100.0097.50

100.00

97.21

93.86

184

184

184

184

184

184

184

184

85,595,888

30,879,595

26,497,684

15,475,843

27,882,535

24,309,666

20,286,130

63,947,574

Real estate rental revenues

79,342,859

27,119,546

24,495,918

13,747,555

25,578,626

22,710,533

18,133,482

56,705,396

Other lease business revenues

6,253,029

3,760,049

2,001,766

1,728,288

2,303,909

1,599,133

2,152,648

7,242,178

14,858,996

9,433,344

6,178,230

3,311,926

5,091,847

3,507,605

5,450,088

11,308,409(3) Regal estate rental expenses(thousand yen)expenses

Aoi

A-20

2,532

(thousand yen)

information

Shin Osaka

A-19

(%)

(2) Total real estate rental income

(7)

A-18
S‐FORT(million yen)

Balance sheet amount(1) Number of operating days

Income and

A-17
S‐RESIDENCE

Management service fee

3,164,853

1,556,512

1,230,363

890,695

1,112,751

1,236,564

1,274,711

2,167,117

Taxes and dues

4,817,886

2,230,240

1,170,175

1,040,150

2,015,922

1,208,000

995,296

3,902,044

Utilities expenses

876,401

287,065

204,606

175,659

356,057

161,613

123,354429,598

2,297,000

1,903,667

282,206

493,479

924,000

275,850

659,850

2,351,685

108,01451,532

36,73426,89653,902

37,77433,256112,304

Repair Cost
Insurance expenses
Trust fees
Other lease business expenses

303,877

653,877--

303,877-

303,877

303,877

3,290,965

2,750,451

3,254,146

685,047

325,338

587,804

2,059,744

2,041,784(4) NOI(＝(2)-(3))(thousand yen)

70,736,892

21,446,251

20,319,454

12,163,917

22,790,688

20,802,061

14,836,042

52,639,165(5) Depreciation(thousand yen)

18,999,806

7,402,487

4,895,223

2,551,985

6,725,344

4,503,671

4,171,176

13,406,354

51,737,086

14,043,764

15,424,231

9,611,932

16,065,344

16,298,390

10,664,866

39,232,811-

1,092,385

325,203

158,378

1,056,909-

145,708

376,095

70,736,892

20,353,866

19,994,251

12,005,539

21,733,779

20,802,061

14,690,334

52,263,070(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

52Income and Expenditure by Property (4)Fiscal Period Ending January 2019 (As of January 31, 2019)(1) Area category

Major regional cities(2) Property No.

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

Kobe
Kaguracho

A-29

A-30

A-31

S-RESIDENCE

S‐FORT

S‐FORT

S‐FORT

Nijo‐jo mae

Chion‐in mae

Miyamachi

Midoribashi
Ekimae

A-32

S-FORT

S-FORT

Tsurumai reale

Osu Kannon

Aug-02, 2016

Aug-02, 2016

Aug-02, 2016

Aug-02, 2016

Aug-02, 2016

Feb-01, 2018

Feb-01, 2018

Mar-01, 2018

1,200

1,858

812

500

1,085

1,846

1,571

1,147

(%)

1.4

2.1

0.9

0.6

1.2

2.1

1.8

1.3

(million yen)

1,220

1,895

819

506

1,101

1,924

1,636

1,216

Total rentable area(㎡)

2,169.67

4,900.32

1,735.95

1,049.01

2,213.12

3,691.67

3,597.72

2,514.12

Leased area(㎡)

2,169.67

4,813.05

1,735.95

1,049.01

1,828.96

3,592.65

3,447.96

2,491.16

Occupancy rate(%)

100.0098.22

100.00100.00

82.64

97.32

95.84

99.09

184

184

184

184

184

184

184

184

40,686,938

70,903,654

23,249,060

14,797,955

33,217,314

64,393,046

48,387,106

41,688,320

Real estate rental revenues

39,312,000

66,666,358

23,248,980

14,797,902

30,387,292

61,330,615

44,023,901

39,321,112

Other lease business revenues

1,374,938

4,237,296

80

53

2,830,022

3,062,431

4,363,205

2,367,208

5,410,606

11,721,258

2,070,996

1,436,993

10,758,837

7,034,560

3,973,704

3,686,959

Management service fee

1,653,844

2,331,598--

1,560,964

2,427,553

1,791,066

1,535,233

Taxes and dues

2,871,782

4,323,356

1,364,636

787,066

1,844,012---

Utilities expenses

324,242433,235-01,235,769

516,113

191,948

225,207
196,945

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

Kobe
Motomachi

A-28

Composition rate

(thousand yen)

information

A-27(million yen)

(2) Total real estate rental income

Income and

A-26
S‐FORT

Acquisition price(1) Number of operating days

(7)

A-25
S‐RESIDENCE

Repair Cost

98,0001,703,512

360,945

315,460

4,752,215

1,706,269

613,646

Insurance expenses

56,02489,882

33,23820,99041,13491,436

74,58655,508Trust fees

303,877

303,877

303,877

303,877

303,877

303,877

303,877

303,877

102,837

2,535,798

8,300

9,600

1,020,866

1,989,312

998,581

1,370,189(4) NOI(＝(2)-(3))

Other lease business expenses(thousand yen)

35,276,332

59,182,396

21,178,064

13,360,962

22,458,477

57,358,486

44,413,402

38,001,361(5) Depreciation(thousand yen)

9,932,750

12,462,644

6,091,147

3,580,481

7,977,682

13,074,822

10,829,767

7,327,593

25,343,582

46,719,752

15,086,917

9,780,481

14,480,795

44,283,664

33,583,635

30,673,768-

905,923

114,982-

781,333

869,203

316,757

316,757

35,276,332

58,276,473

21,063,082

13,360,962

21,677,144

56,489,283

44,096,645

37,684,604(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

53Income and Expenditure by Property (5)Fiscal Period Ending January 2019 (As of January 31, 2019)(1) Area category

Major regional cities(2) Property No.

A-33(3) Property name(4) Acquisition date
(5)
Price
information(6)
Leasing
information

A-38

A-39

A-40

S-FORT

S-FORT

S-FORT

S-FORT

S-FORT

S-FORT

S-FORT

Kita-Sanno

Aratamabashi

Toyohira Sanjyo

Kitamaruyama

Hakata-Higashi I

Hakata-Higashi II

S-FORT

Kobe

Nakahirodori

Sannomiya-Kita

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

841

449

762

425

389

382

515

885

(%)

1.0

0.5

0.9

0.5

0.4

0.4

0.6

1.0

(million yen)

877

471

799

456

410

410

543

916

Balance sheet amount
Total rentable area(㎡)

1,757.61

1,699.11

2,868.75

1,613.38

1,034.20

1,034.20

884.882,127.92

Leased area(㎡)

1,757.61

1,640.52

2,627.35

1,582.02

918.56976.38767.112,072.74

Occupancy rate(%)

100.00

96.55

91.59

98.06

88.82

94.41

86.69

97.41

184

184

184

184

184

184

184

184

21,510,821

15,996,063

29,907,345

15,838,647

14,148,055

13,635,245

15,596,863

28,478,883

Real estate rental revenues

20,333,977

14,182,629

27,102,889

15,128,248

11,526,791

11,441,033

15,111,522

27,161,140

Other lease business revenues

1,176,844

1,813,434

2,804,456

710,399

2,621,264

2,194,212

485,341

1,317,743

5,016,921

1,976,855

4,203,049

4,080,030

2,161,243

1,858,146

4,398,209

3,149,882

1,012,861

1,000,468

1,372,541

849,110698,359

713,638

891,556

1,485,511(3) Regal estate rental expenses(thousand yen)Management service fee

expenses

A-37

Composition rate

(thousand yen)

information

A-36(million yen)

(2) Total real estate rental income

Income andA-35

Acquisition price(1) Number of operating days

(7)

A-34

Taxes and dues--

12,528

-

-

-

-

-

Utilities expenses

232,708

141,555

546,511496,654591,699

630,908460,256

200,630
565,500

Repair Cost

584,800

388,830

1,102,754

1,810,250

393,600

314,140

1,802,175

Insurance expenses

42,80235,60460,54636,354

24,792

24,792

28,04443,740Trust fees

303,877-

303,877

-

-

-

-

303,877

2,839,873

410,398

804,292

887,662452,793

174,668

1,216,178

550,624(4) NOI(＝(2)-(3))

Other lease business expenses(thousand yen)

16,493,900

14,019,208

25,704,296

11,758,617

11,986,812

11,777,099

11,198,654

25,329,001(5) Depreciation(thousand yen)

5,841,312

2,716,157

6,853,795

3,329,284

2,463,340

2,482,651

2,858,971

5,407,629

10,652,588

11,303,051

18,850,501

8,429,333

9,523,472

9,294,448

8,339,683

19,921,372

475,135

358,779

316,757

932,996

228,064

114,032

2,174,387

422,342

16,018,765

13,660,429

25,387,539

10,825,621

11,758,748

11,663,067

9,024,267

24,906,659(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

54Income and Expenditure by Property (6)Fiscal Period Ending January 2019 (As of January 31, 2019)(1) Area category

Major regional cities(2) Property No.

A-41
S-FORT(3) Property name(5)information(6)
Leasing
information

Fukushima

Fukushima

La LunaLibre

Aug-28, 2018

Aug-28, 2018

A-46

A-47

A-48

S-FORTS-RESIDENCE

Kamiyashiro

MiyanomoriAug-28, 2018

S-FORT
Higashi-Sapporo
Nordo

Aug-28, 2018

Aug-28, 2018

(million yen)

820

918

1,338

896

538

429

660

303

(%)

0.9

1.0

1.5

1.0

0.6

0.5

0.7

0.3

(million yen)

853

952

1,390

926

565

449

689

320

Total rentable area(㎡)

2,006.49

2,072.84

2,083.41

1,473.04

900.72

1,029.42

1,954.81

1,204.96

Leased area(㎡)

1,882.87

1,950.34

2,083.41

1,473.04

850.12

1,004.91

1,954.81

1,104.76

Occupancy rate

(%)

93.84

94.09

100.00100.00

94.38

97.62

100.00

91.68

184

184

157

157

157

157

157

157

25,353,363

34,429,212

35,559,865

23,915,562

14,482,604

13,060,980

18,696,075

11,132,285

Real estate rental revenues

22,019,276

32,399,709

32,843,390

22,201,433

12,758,137

12,190,634

18,310,645

9,021,775

Other lease business revenues

3,334,087

2,029,503

2,716,475

1,714,129

1,724,467

870,346

385,430

2,110,510

5,858,857

3,670,099

4,009,943

2,500,439

2,839,655

2,481,584

1,534,877

1,391,465

1,248,691

1,557,962

1,485,985

1,115,557

736,423

702,917909,890561,856-

20,174

-

-

-

-

-

-

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

expensesAug-28, 2018

A-45
S-FORT

Composition rate

(thousand yen)

information

Feb-01, 2018

A-44
S-FORT

Acquisition price(2) Total real estate rental income

Income and

S-RESIDENCE
Shin Osaka Ridente

Kamisugi

Feb-01, 2018

(1) Number of operating days

(7)

A-43

Aoba

Tsurumicho(4) Acquisition date

Price

A-42
S-FORT

Utilities expenses
Repair Cost

212,312326,619

267,330

389,722

318,900

161,233

225,048

288,122

1,484,650

760,636

839,920

286,000

581,230

869,8400366,361
25,735

Insurance expenses

43,21048,35652,15432,861

23,33523,72543,037

Trust fees

303,877

303,877

259,498

259,498--

259,498-

2,566,117

652,475

1,105,056

416,801

1,179,767

723,869

97,404

149,391

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

19,494,506

30,759,113

31,549,922

21,415,123

11,642,949

10,579,396

17,161,198

9,740,820(5) Depreciation(thousand yen)

5,786,547

7,177,180

6,770,070

3,951,026

2,679,090

2,714,166

3,318,873

2,074,872

13,707,959

23,581,933

24,779,852

17,464,097

8,963,859

7,865,230

13,842,325

7,665,948

1,680,603

316,757

123,403150,987

263,964

753,879-

149,931

17,813,903

30,442,356

31,426,519

21,264,136

11,378,985

9,825,517

17,161,198

9,590,889(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

55Income and Expenditure by Property (7)Fiscal Period Ending January 2019 (As of January 31, 2019)(1) Area category

Other regional cities(2) Property No.

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

Yokkaichi
Motomachi

B-06

S-FORT

S‐RESIDENCE

S‐FORT

SuzukaEsaka

Utsunomiya

B-07

B-08

S‐FORT

S‐FORT

Yokkaichi

Saga

Nishishinchi

Honjo

Apr-15, 2015

Jul-01, 2015

Jul-01, 2015

Aug-02, 2016

Aug-02, 2016

Aug-02, 2016

Aug-02, 2016

1,420

480

580

2,323

612

630

1,050

0.5

0.7

2.6

0.7

0.7

1.2

0

498

593

2,365

629

671

1,059

911.401,691.28

2,286.69

3,739.30

2,330.64

2,192.48

4,972.84(㎡)

651.001,655.61

2,286.69

3,708.55

2,286.21

2,192.48

4,972.84

(%)

71.43

97.89

100.00

99.18

98.09

100.00100.00Composition rate

(%)

0.3

(million yen)

297

Total rentable area(㎡)

Leased area
Occupancy rate

184

184

184

184

184

184

184

184

8,928,197

57,364,429

22,291,780

26,729,360

76,882,332

25,388,613

27,631,164

36,542,353

Real estate rental revenues

8,517,182

40,891,253

19,965,477

22,026,395

72,761,700

23,547,757

23,934,264

35,533,026

Other lease business revenues

411,015

16,473,176

2,326,303

4,702,965

4,120,632

1,840,856

3,696,900

1,009,327

3,612,659

12,617,872

4,464,331

8,747,558

10,513,961

7,140,013

5,675,009

3,687,635(3) Regal estate rental expenses(thousand yen)expenses

S-FORT
Suminodo

B-05

297

(thousand yen)

information

B-04

Apr-15, 2015

(2) Total real estate rental income(7)

S‐FORT(million yen)

Balance sheet amount

B-03
S-FORT

Miyamachi

Acquisition price(1) Number of operating days

Income and

B-02

Management service fee

942,272

1,700,091

1,410,225

1,590,173

2,515,378

1,556,363

1,505,322-

Taxes and dues

851,528

2,878,000

1,119,234

1,629,124

4,066,294

2,297,012

1,418,000

2,968,018

Utilities expenses

205,998

1,687,202

746,373

1,194,528

352,056

463,103931,248

313,236

Repair Cost

515,4633,759,600

247,170

1,632,467

1,049,167

1,536,170

688,975

Insurance expenses

25,264

151,647

38,29654,172

94,35046,674

41,84094,904

Trust fees

303,877

300,816

303,877

303,877

303,877

303,877-

303,877

768,257

2,140,516

599,156

2,343,217

2,132,839

936,814

1,089,624

7,600(4) NOI(＝(2)-(3))

Other lease business expenses(thousand yen)

5,315,538

44,746,557

17,827,449

17,981,802

66,368,371

18,248,600

21,956,155

32,854,718(5) Depreciation(thousand yen)

3,177,871

15,002,351

6,282,874

7,395,913

14,939,899

5,425,455

6,131,730

13,953,954

2,137,667

29,744,206

11,544,575

10,585,889

51,428,472

12,823,145

15,824,425

18,900,764

234,095--

659,033

801,746

1,715,393

220,462

1,047,557

5,081,443

44,746,557

17,827,449

17,322,769

65,566,625

16,533,207

21,735,693

31,807,161(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

56Income and Expenditure by Property (8)Fiscal Period Ending January 2019 (As of January 31, 2019)(1) Area category

Other regional cities(2) Property No.

B-09

B-10

S‐FORT

S-FORT

Saga(3) Property name

(5)
Price
information(6)
Leasing
information

Acquisition price(million yen)

Composition rate

S-FORT

S-FORT

Mito Chuo

Tsu Shinmachi

B-16
S-FORT

S-FORT

Mie

Oita

Takasagomachi

Daigaku-mae

EkimaeAug-02, 2016

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

375

1,412

789

1,807

767

599

1,015

904

0.4

1.6

0.9

2.0

0.9

0.7

1.2

1.0

1,471

814

1,882

804

634

1,068

945

(㎡)

1,507.35

2,887.26

1,546.28

6,503.80

2,463.30

1,874.88

3,588.84

2,662.36

Leased area(㎡)

1,507.35

2,838.24

1,371.76

5,764.07

2,320.50

1,874.88

3,316.50

2,662.36

Occupancy rate(%)

100.00

98.30

88.71

88.63

94.20

100.0092.41

100.00

184

184

184

184

184

184

184

184

12,914,932

45,415,904

24,668,405

63,184,245

32,931,625

25,351,631

41,190,051

31,721,078

12,646,134

42,638,307

22,308,100

54,730,511

27,442,769

22,476,464

36,500,073

30,953,148

268,798

2,777,597

2,360,305

8,453,734

5,488,856

2,875,167

4,689,978

767,930

1,634,781

8,205,259

3,129,497

11,459,529

4,643,925

2,601,745

9,031,072

3,215,224-

2,205,319

1,588,979

3,226,118

1,508,370

1,187,868

3,339,904

1,806,332

961,266

-

-

-

-

-

-7

-

Total rentable area

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

expenses

B-15

379

(thousand yen)

information

B-14
S-FORT(%)(2) Total real estate rental income

Income andUegahara

B-13(million yen)

Balance sheet amount(1) Number of operating days

(7)

B-12

Nishinomiya

Nishinomiya

Idaimae(4) Acquisition date

B-11
S-FORT-803,778

768,793

651,810826,267

742,337

1,420,562

479,600

Repair Cost

Utilities expenses

337,150

1,399,395

409,521

5,033,969

1,220,491

95,3202,702,144

537,380

Insurance expenses

26,28865,52836,990126,560

46,33236,51685,42665,480Trust fees

303,877

303,877

303,877

303,877

303,877-

503,877

303,877

6,200

3,427,362

21,337

2,117,195

738,588539,704

979,166

22,555

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

11,280,151

37,210,645

21,538,908

51,724,716

28,287,700

22,749,886

32,158,979

28,505,854(5) Depreciation(thousand yen)

4,595,013

8,454,290

4,411,962

14,374,247

6,997,445

4,838,874

11,070,436

7,952,399

6,685,138

28,756,355

17,126,946

37,350,469

21,290,255

17,911,012

21,088,543

20,553,455

127,758

1,307,149

1,333,335

1,062,336

918,595

890,763

1,973,768

429,733

11,152,393

35,903,496

20,205,573

50,662,380

27,369,105

21,859,123

30,185,211

28,076,121(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

57Income and Expenditure by Property (9)Fiscal Period Ending January 2019 (As of January 31, 2019)(1) Area category

Other regional cities(2) Property No.

B-17

B-18

S-FORT

S-FORT

Oita(3) Property nameSuizenji(5)
Price
information(6)
Leasing
information

Acquisition price(million yen)

Composition rate
Balance sheet amount

Kumadaibyoin-

Kumamoto

Esaka

Niigata

Tarumicho

HonchoS-FORT
Motohama

mae

Senba

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Aug-28, 2018

Aug-28, 2018

Aug-28, 2018

277

1,332

1,125

1,010

774

960

239

0.3

1.5

1.3

1.1

0.9

1.1

0.3

1,382

1,177

1,060

807

1,040

257

Total rentable area(㎡)

905.804,256.91

3,459.60

3,224.24

1,267.30

2,604.25

1,010.60

Leased area(㎡)

905.803,883.20

3,186.75

3,038.58

1,212.71

2,392.42

921.40Occupancy rate(%)

100.00

91.22

92.11

94.24

95.69

91.87

91.17

184

184

184

184

157

157

157

10,560,466

46,360,490

39,143,665

38,213,590

20,094,297

25,503,952

8,850,033

10,563,000

39,887,101

34,017,458

35,295,990

18,717,597

24,866,717

8,525,294-2,534

6,473,389

5,126,207

2,917,600

1,376,700

637,235

324,739

1,388,095

7,795,416

7,368,568

4,251,267

4,042,681

3,139,266

2,194,003
902,508

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

expenses

B-23

300

(thousand yen)

information

B-22
S-FORT(%)(2) Total real estate rental income

Income and

B-21
S-FORT(million yen)

(1) Number of operating days

(7)

B-20
S-FORT

Feb-01, 2018

Otemachi(4) Acquisition date

B-19
S-FORT

1,047,000

2,567,440

2,233,453

1,850,456

1,121,231

1,821,263

Taxes and dues-

25,168

4,157

-

-

-

-

Utilities expenses

64,6092,009,422

1,681,216

331,206

143,720

296,326

151,683

Repair Cost

38,0001,699,850

1,323,750

812,200

231,800

51,680215,100

Insurance expenses

24,78685,70877,98063,35831,54053,97623,168Trust fees
Other lease business expenses-

303,877

303,877

303,877

259,498

259,498-

213,700

1,103,951

1,744,135

890,170

2,254,892

656,523

901,544(4) NOI(＝(2)-(3))(thousand yen)

9,172,371

38,565,074

31,775,097

33,962,323

16,051,616

22,364,686

6,656,030(5) Depreciation(thousand yen)

2,651,900

10,336,178

11,495,961

10,795,984

4,583,005

6,898,780

2,179,689

6,520,471

28,228,896

20,279,136

23,166,339

11,468,611

15,465,906

4,476,341-

3,713,447

2,644,393

1,055,856

1,034,106

248,126

1,354,661

9,172,371

34,851,627

29,130,704

32,906,467

15,017,510

22,116,560

5,301,369(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

58Income and Expenditure by Property (10)Fiscal Period Ending January 2019 (As of January 31, 2019)(1) Area category

Greater Tokyo area

(2) Property No.

C-01
S-FORT(3) Property name

Maita Koen
Apr-15, 2015

(4) Acquisition date
(5)
Price
information(6)
Leasing
information

Itabashi

Hakozaki

ShimuraJul-01, 2015

Jul-01, 2015

C-06

S-FORT

S-FORT

Shiomi

Noborito

Jul-01, 2015

C-07

S-FORT
ShonanHiratsuka

Jul-01, 2015

Jul-01, 2015

C-08

S-FORT

S-FORT

Nishifunabashi

Maihama

Jul-01, 2015

Jul-01, 2015
1,130

987

925

645

866

666

818

732

(%)

1.1

1.0

0.7

1.0

0.8

0.9

0.8

1.3

(million yen)

972

945

647

872

664

845

732

1,150

Balance sheet amount
Total rentable area(㎡)

1,609.80

1,114.38

1,119.54

1,042.48

1,022.10

1,717.46

1,397.64

1,726.56

Leased area(㎡)

1,512.20

1,014.56

1,119.54

1,022.47

996.601,640.10

1,288.77

1,642.64

Occupancy rate

(%)

93.94

91.04

100.00

98.08

97.51

95.50

92.21

95.14

184

184

184

184

184

184

184

184

32,867,573

28,448,314

19,630,834

29,304,812

21,005,751

31,000,292

24,260,332

38,068,985

Real estate rental revenues

29,909,900

25,322,386

18,572,475

26,206,181

19,827,437

29,340,806

23,058,352

34,246,916

Other lease business revenues

2,957,673

3,125,928

1,058,359

3,098,631

1,178,314

1,659,486

1,201,980

3,822,069

8,119,108

4,824,652

6,321,368

7,257,332

4,801,335

5,749,577

4,332,169

7,041,146(3) Regal estate rental expenses(thousand yen)expenses

Nihonbashi

C-05(million yen)(thousand yen)

information

C-04

Acquisition price(2) Total real estate rental income

(7)

C-03
S-FORT

Composition rate(1) Number of operating days

Income and

C-02
S-FORT

Management service fee

2,188,063

1,375,306

1,218,980

1,643,307

1,220,660

1,637,601

1,340,609

1,889,689

Taxes and dues

1,984,186

1,298,360

1,302,042

1,356,548

1,088,624

1,777,720

1,359,510

1,390,794

Utilities expenses
Repair Cost

385,738

440,333

268,681507,052

214,235

188,593

200,199

641,436

2,135,033

776,500

1,836,332

2,507,834

921,600

608,895

815,313

1,816,515

Insurance expenses

53,70036,49832,83640,25031,80443,30034,54045,430Trust fees

303,877

320,724

320,724

320,724

320,724

320,724

320,724

320,724

1,068,511

576,931

1,341,773

881,617

1,003,688

1,172,744

261,274

936,558

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

24,748,465

23,623,662

13,309,466

22,047,480

16,204,416

25,250,715

19,928,163

31,027,839(5) Depreciation(thousand yen)

8,413,291

5,164,637

4,168,567

6,117,144

4,705,340

6,467,827

5,270,552

6,824,768

16,335,174

18,459,025

9,140,899

15,930,336

11,499,076

18,782,888

14,657,611

24,203,071

365,325

266,075

611,580

474,078--890,084

3,003,324

24,383,140

23,357,587

12,697,886

21,573,402

16,204,416

25,250,715

19,038,079

28,024,515(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

59Income and Expenditure by Property (11)Fiscal Period Ending January 2019 (As of January 31, 2019)(1) Area category

Greater Tokyo area

(2) Property No.

C-09(3) Property name(4) Acquisition date
(5)
Price
information(6)
Leasing
information

S-FORT

S‐RESIDENCE

S‐FORT

S-FORT

Ichikawa

Yokosuka Chuo

Sagamihara

Hoya

C-14

Tamagawagakuenmae

C-15

C-16

S-RESIDENCE

S-FORT

S-FORT

Yokohama

Tsurukawa

Chigasaki

TanmachiJul-01, 2015

Aug-02, 2016

Aug-02, 2016

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

809

850

585

645

587

520

627

1,137

(%)

0.9

1.0

0.7

0.7

0.7

0.6

0.7

1.3

(million yen)

824

876

593

667

611

545

654

1,184

(㎡)

1,255.90

1,492.09

1,198.26

1,177.94

978.75

1,886.70

772.38

1,382.17

Leased area(㎡)

1,187.29

1,492.09

1,085.68

1,177.94

913.501,823.81

772.381,294.80

Occupancy rate

(%)

94.54

100.0090.60

100.00

93.33

96.67

100.00

93.68

184

184

184

184

184

184

184

184

27,578,535

29,640,116

18,975,461

19,620,050

18,014,428

18,882,595

18,403,254

31,479,153

Real estate rental revenues

26,287,283

29,520,000

17,589,731

19,620,000

17,644,358

16,637,910

18,360,000

30,038,458

Other lease business revenues

1,291,252

120,116

1,385,730

50

370,070

2,244,685

43,254

1,440,695

8,460,216

3,777,210

5,409,441

594,1832,369,940

2,589,287

1,652,440

3,476,060
1,352,081

Balance sheet amount
Total rentable area

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

C-13
S-FORT

Composition rate

(thousand yen)

information

C-12(million yen)

(2) Total real estate rental income

Income andC-11

Acquisition price(1) Number of operating days

(7)

C-10

Management service fee

2,210,480

1,417,200

1,488,769-

1,171,186

1,415,126

1,152,120

Taxes and dues

1,570,814

2,288,000

1,326,656

-

-513

-

-

-

Utilities expenses

783,014-364,399-

158,424

182,468

145,763

105,100
415,395

2,603,880

27,408716,872

256,000

607,100

802,500-

Insurance expenses

Repair Cost

39,86840,00230,90628,80630,60641,852

22,67635,938Trust fees

405,168-

202,585

303,877

303,877-

303,877

303,877

846,992

4,600

1,279,254

5,500

99,260147,341

28,004

1,263,669(4) NOI(＝(2)-(3))

Other lease business expenses(thousand yen)

19,118,319

25,862,906

13,566,020

19,025,867

15,644,488

16,293,308

16,750,814

28,003,093(5) Depreciation(thousand yen)

3,530,066

7,710,315

4,493,360

3,780,355

3,395,115

2,270,256

4,224,492

6,805,104

15,588,253

18,152,591

9,072,660

15,245,512

12,249,373

14,023,052

12,526,322

21,197,989--

1,333,282-

2,146,908

791,762

211,171274,522

19,118,319

25,862,906

12,232,738

19,025,867

13,497,580

15,501,546

16,539,643

27,728,571(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

60Income and Expenditure by Property (12)Fiscal Period Ending January 2019 (As of January 31, 2019)
Greater Tokyo area

(1) Area category(2) Property No.

C-17

C-18

(3) Property name

Kawaguchi

S-FORT(4) Acquisition date
(5)
Price
information(6)
Leasing
information

S-FORTS-RESIDENCE

Fujimidai

MatsudoFeb-01, 2018

Feb-01, 2018

Feb-01, 2018

Feb-01, 2018

Aug-28, 2018

Nov-26, 2018

1,110

914

1,900

536

1,150

840

(%)

1.3

1.0

2.2

0.6

1.3

1.0

(million yen)

1,156

957

1,966

562

1,218

876

Total rentable area(㎡)

1,457.51

1,438.71

5,640.60

983.06

2,054.86

1,180.53

Leased area(㎡)

1,290.06

1,416.13

5,640.60

827.31

1,988.21

1,180.53

Occupancy rate

(%)

88.51

98.43

100.00

84.16

96.76

100.00

184

184

184

184

157

67

30,315,483

28,295,126

58,217,496

15,450,117

31,249,406

8,740,230

29,955,411

27,652,766

54,292,800

14,867,688

29,617,224

8,739,424

360,072

642,360

3,924,696

582,429

1,632,182

806

4,564,126

3,264,708

7,621,288

2,919,468

4,020,373

658,590

1,821,326

1,530,326

3,078,000

1,183,364

1,869,372

470,859

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

expenses

S-FORT
Kashiwa(million yen)(thousand yen)

information

TsukadaC-22

Composition rate(1) Number of operating days

Income andFunabashi

C-21

Acquisition price(2) Total real estate rental income(7)

S-FORT

S-FORT
Todakoen

Namiki

C-20

C-19

Taxes and dues

-

-

-

-

-

-

Utilities expenses

229,406

222,251

801,678

254,536

255,465

39,404

1,146,043

374,500

3,317,151

1,076,970

533,396042,07238,558113,282

26,99845,505

14,616

Repair Cost
Insurance expenses
Trust fees
Other lease business expenses

303,877

303,877

303,877-

259,498

110,135

1,021,402

795,1967,300

377,600

1,057,137

23,576(4) NOI(＝(2)-(3))(thousand yen)

25,751,357

25,030,418

50,596,208

12,530,649

27,229,033

8,081,640(5) Depreciation(thousand yen)

6,700,126

6,396,226

10,049,746

2,979,320

4,235,412

1,822,686

19,051,231

18,634,192

40,546,462

9,551,329

22,993,621

6,258,954

158,378

158,378

8,024,513

3,061,985

118,255-

25,592,979

24,872,040

42,571,695

9,468,664

27,110,778

8,081,640(6) Real estate rental income（＝(4)-(5)）(thousand yen)
(7) Capital Expenditures(thousand yen)(8) NCF（＝(4)-(7))

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

(Unit：thousand yen）
前 Previous Fiscal Year

Current Fiscal Year

Previous Fiscal Year

Current Fiscal Year

期

(January 31, 2019)(July 31, 2018)(January 31, 2019)(July 31, 2018)

AssetsCurrent Assets
Cash and deposits

1,003,479

3,041,585

Cash and deposits in trust

1,508,337

1,622,221

9,498

7,147

Prepaid expenses

105,539

100,631

Consumption tax receivable

93,76914,808

Other

4,308

169

2,724,933

4,786,565

Operating accounts receivable

Total-current assets
Non-current assets

Investment and other assets
Investment securities
Deferred tax assets
Lease and guarantee deposits

5,898

－

18

7

10,542

10,556Long-term prepaid expenses

168,125

171,662

Total investment and other assets

184,585

182,226

84,332,082

90,943,120

Total non-current assets
Deferred asset
Investment unit issuance expenses

28,22936,364

4,077,538

4,914,499

Investment corporation bond issuance costs

37,134

31,104

Accumulated depreciation-127,285-188,461

Total deferred assets

65,364

67,469Buildings, net

3,950,253

4,726,037

87,122,379

95,797,155

－

1,066

Property, plant and equipment
Buildings

Structures
Accumulated depreciation－-11

Structures, net

－

1,054

1,698

1,698

Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
Tools, furniture and fixtures

-57

-115

1,641

1,583

8,990

11,839

Accumulated depreciation-574-1,359Tools, furniture and fixtures, net

8,416

10,479Land

4,021,075

4,807,015

Buildings in trust

44,176,029

46,842,428

Accumulated depreciation-2,385,167-2,877,556

Buildings in trust, net

41,790,862

43,964,872

13,251

18,074Structures in trust
Accumulated depreciation-1,177-1,903Structures in trust, net

12,073

16,170Machinery and equipment in trust

547,966

575,567

Accumulated depreciation-66,976-81,528

Marchinery and equipment in trust, net

480,989

494,038

Tools, furniture and fixtures in trust

41,31951,921

Accumulated depreciation-9,604-13,283

Tools, furniture and fixtures in trust, net
Land in Trust
Total property, plant and equipment

31,714

38,63733,850,471

36,701,003

84,147,497

90,760,894

Total Assets

62

Financial Documents: Balance Sheet (2)(Unit：thousand yen）
Previous Fiscal Year
(July 31, 2018)

Current Fiscal Year
(January 31, 2019)

Liabilities
Current liabilities
Operating accounts payable

167,304

258,7545,000,000

10,600,000

Accounts payable – other

40,36654,275

Accrued expenses

7,258

6,985

Accrued dividend

9,990

10,222Current portion of long-term loans payable

Accrued consumption taxes
Income taxes payable
Advances received

718

676

394,805

436,917

7,787

9,008

5,628,232

11,376,839

Investment corporation bonds

2,000,000

2,000,000

Long-term loans payable

37,600,000

36,300,000

Total current liabilities
Non-current liabilities

Tenant leasehold and security deposits

46,93452,428Tenant leasehold and security deposits in trust

363,420

371,045

Total non-current liabilities
Total Liabilities

40,010,354

38,723,474

45,638,586

50,100,314

41,118,717

45,235,447

Net assets
Unitholders’ equity
Unitholders’ capital
Amount deducted from Unitholders' capital
Unitholders’ capital, net-645,685-859,373

41,118,717

44,376,073

1,010,760

1,320,767

Surplus
Unappropriated retained earnings(undisposes loss) (-)

1,010,760

1,320,767

Total unitholders' equity

Total surplus

41,483,792

45,696,841

Total net assets

41,483,792

45,696,841

Total liabilities and net assets

87,122,379

95,797,155

63

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

Current Fiscal Year

(From: February 1, 2018

(From: August 1, 2018

To: July 31, 2018)

To: January 31, 2019)

Operating revenue
Rent revenue - real estate

2,602,421

2,792,057

Other lease business revenues

273,095

242,674

Silent partnership revenue

12,487－－

181,777

2,888,004

3,216,510

1,200,247

1,233,859

127,973

226,397

Gain on sale of real estate, etc.
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee

5,585

7,519

Administrative service fees

50,01851,491

Directors’ compensations

2,400

2,400

Remuneration for Accounting Auditors

10,00012,00087,33575,898

Total operating expenses

Other operating expenses

1,483,560

1,609,566

Operating income

1,404,444

1,606,943

Non-operating income
Interest income

45Interest on refund－259

Total non-operating income

4

264

170,670

191,254

Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses
Amortization of investment unit issuance expenses
Amortization of investment corporation bond issuancecosts
Total non-operating expenses

9,017

9,136

198,840

68,295

8,352

11,267

5,930

6,029

392,812285,982

Ordinary income

1,011,635

1,321,225

Net income before income taxes

1,011,635

1,321,225

Income taxes – current

986

751

Deferred Income taxes

-6

11

979

762

1,010,656

1,320,463

103

304

1,010,760

1,320,767

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

64

Financial Documents：Statement of Cash Flows(unit: thousand yen)(unit: thousand yen)Previous Fiscal Year

Current Fiscal Year

Previous Fiscal Year

Current Fiscal Year

(From: February 1, 2018

(From: August 1, 2018

(From: February 1, 2018

(From: August 1, 2018

To: July 31, 2018)

To: January 31, 2019)

To: July 31, 2018)

To: January 31, 2019)

Cash flows from operating activities

Cash flows from investing activities
Purchase of property, plant and equipment-4,361,924-1,614,850

Purchase of property, plant and equipment in trust-27,364,071-7,042,139

Payment for lease and guarantee deposits

-218

-33

200,390

Proceeds from collection of lease and guarantee deposits

105

20

8,352

11,267

Repayments of lease and guarantee deposits received-5,780-3,632

5,930

6,029

Proceeds from lease and guarantee deposits received

22,807

9,127

Decrease (increase) in operating accounts receivable-5,1482,350-42,455-39,717

Decrease (increase) in consumption taxes receivable-93,769

78,960

182,594

47,342

Net income before income taxes
Depreciation
Interest income
Interest expenses
Amortization of investment unit issuance expenses
Amortization of investment corporation bond issuancecosts

1,011,635

1,321,225

647,959

686,427-4-5

179,688

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

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

Decrease (increase) in prepaid expenses-38,595

4,907

Increase (decrease) in operating accounts payable

38,74647,928

Increase (decrease) in accounts payable – other

21,272

13,908Decrease in short-term loans payable-200,000－

Increase (decrease) in advances received

131,949

42,111

Proceeds from long-term loans payable

17,900,000

4,300,000

Decrease (increase) in long-term prepaid expenses-86,635-3,536-2,500,000－

Decrease from sales of property, plant and equipment in－

1,400,686

25,1071,203

1,842,907

3,813,856

45Interest expenses paid

-178,834-200,663

Refund of income taxes－

Income taxes – current

trust
Other, net
SubtotalInterest income received

Cash flows from operating activities

Proceeds from redemption of investment securities
Cash flows from investing activities

266,107

5,898-31,302,836-8,637,984

Cash flow from financing activities

Proceeds from issuance of investment corporation
bonds
Proceeds from issuance of investment units
Payments for investment unit issuance expenses
Dividends paid

973,741－

15,080,561

4,097,327-755,638-1,223,912

30,498,662

7,173,414

Net increase (decrease) in cash and cash equivalents

856,323

2,151,990

4,155

Cash and cash equivalents at the beginning of period

1,655,494

2,511,817-3,580-793

Cash and cash equivalents at the end of period

2,511,817

4,663,807

1,660,496

3,616,559

Cash flows from financing activities

65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
Fiscal period
ending January
2019(Units owned bysponsors areincluded)

Financial Institutions(including financial dealers)
133,247 units【26.4%】

Fiscal period
ending January
2019(Units owned bysponsors are notincluded)0%

Other domestic
corporations
218,031 units【43.3%】

Financial Institutions(including financial dealers)
133,247 units【43.1%】

10%

20%

Overseas investors

13,291 units【2.6%】 139,531 units【27.7%】

Other domesticeOverseas investors
corporations
22,751 units【7.4%】 13,291 units【4.3%】

30%

40%

50%

Individuals / Other

60%

Individuals / Others
139,531 units【45.2%】

70%

80%

90%

100%

◆ Unitholder Information
Numer of units byunitholder type

As of July 31,
2017

As of January
2018

As of July 31,
2018

As of January
2019

Number of unitholders byunitholder type

As of July 31,
2017

As of January
2018

As of July 31,
2018

As of January
2019

Financial Institutions(including financial dealers)

95,611 units

102,851 units

113,435 units

133,247 units

Financial Institutions(including financial dealers)

53 people

51 people

51 people

66 people

Other domestic corporations

31,195 units

36,482 units

209,541 units

218,031 units

Other domestic corporations

235 people

216 people

198 people

231 people(owned by sponsors)(12,374 units)(12,374 units)(185,974 units)(195,280 units)(owned by sponsors)(1 people)(1 people)(2 people)(2 people)

Overseas investors

6,730 units

9,604 units

11,729 units

13,291 units

Overseas investors

53 people

58 people

58 people

67 people

Individuals / Other

149,464 units

134,063 units

121,895 units

139,531 units

Individuals / Other

16,725 people

15,493 people

14,329 people

15,895 people

Total

283,000 units

283,000 units

456,600 units

504,100 units

Total

17,066 people

15,818 people

14,636 people

16,259 people

66Unitholder Information (2) Major Unitholders◆Major Unitholders (top 10) as of January 31, 2019
Investment
Unitholder

units(units)Ratio(%)

Daiwa Securities Group Inc.

170,075

33.73

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

30,753

6.10

Samty Co., Ltd.

25,205

5.00

Japan Trustee Services Bank, Ltd. (Trust Account)

25,082

4.97

Kinki Sangyo Credit Union

18,4003.65

Daiwa PI Partners Co.Ltd.

10,858

2.15

10,207

2.02

8,964

1.77

Daido Shinyoukumiai

5,957

1.18

Osaka co-sei Shinkin Bank

5,820

1.15

Total of major unitholders (top 10)

311,32161.76

Total of units

504,100

100.00

The Nomura Trust and Banking Co., Ltd.
(Trust Account)
Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)67Change in Investment Unit Price(June 30, 2015 to February 28, 2019)

Source: Prepared by Samty Asset Management based on Tokyo Stock Exchange, Inc. Database68

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.

69