"Financial Results for the 9th Fiscal Period Ended July 2020"

Star Asia Investment Corporation(Securities CODE 3468)
Star Asia Investment Management0Contents

Characteristics of Star Asia Investment Corporation (SAR)
1.

Executive summary2

1. A diversified REIT
Portfolio developed with diversified assets located mainly in the Tokyo Area (Note2)2.

Distributions for the 9th fiscal period ended July 2020

3.

Impact and response of COVID-19 in the 9th Fiscal Period
ended July 2020

64.

Merger9

Financial performance forecasts for the 10th Fiscal

4(ending Jan. 31, 2021) and11th Fiscal Period (ending July 31, 2021)

12

6.

Operating results for the 9th fiscal period ended July 2020

16

7.

Future Initiatives

24

8.

Actual and forecasted distribution

27

10

Initiatives on ESG
Appendix

3. Initiatives focusing on unitholder value
Constant, “out-of-the-box” active management

Period5.

9.

2. Steady growthPursuit of internal growth by the Asset Manager with abundant experience andknow-how as well as external growth based on asset managed performed by theStar Asia Group32
37

Investment policy

Prioritized, focusedinvestment in theTokyo Area (＊１)
Investment ratio of 70%
of higher in theTokyo Area

Achieving income
stability and growththroughdiversification ofasset type

Investment primarily
in middle-size
assets (＊2)※Unless otherwise stated within this document, references to all monetary amounts have been rounded down to the nearest monetary unit described, and ratios have been rounded to the decimal point described.
※ In this document, Star Asia Investment Corporation may be referred to as "SAR" and Sakura Sogo REIT Investment Corporation as "SSR".
※ Assets that are classified as "Other" in SSR (pre-merger) are classified as "Logistics" in SAR (post-merger) in accordance with Star Asia Investment Management operation guidelines.

1*1 “Tokyo area”: “Tokyo area” refers to Tokyo’s 23 wards and the cities of Kawasaki and Yokohama for office properties and retail facilities, and Tokyo and the three prefectures of Kanagawa, Saitama and Chiba for residential properties, logistics facili ties, hotels and student residences.
*2 “Middle-size assets” are properties with acquisition prices of less than JPY10bn.

1．Executive summary2

１．Executive summary＜FP Ended July 2020 Actual＞＜After January 2021＞

Actual results for fiscal period ended July
2020 exceeded forecasts.

Asset size increased to JPY 166.4 billion
due to the merger.

Up 126yenSAR

3,436 yen

3.8％ increase compared
to forecast

Up71 yenSSR2,489 yen

2.9％ increase compared
to forecast

Impact of COVID-19 is negligible.
Impact of COVID-19 is negligible.
OfficeRent reduction demands from tenants were limited, and resolved
slightly above expected levels.

RetailAlthough rent reduction demands were accepted to a certain
extent depending on the status of the tenant, the amount wasapproximately ▲2.2% of the expected gross revenue of thecommercial facility.

Residence
Logistics

Hotel

Compared to past years, down time for single types were slightly longer.

No impact.
There was one tenant that petitioned for application of the Civil
Rehabilitation Act; however, rents were received. There weresome cases where rent reduction requests were accepted.

◼

Asset size◼

Number of properties ： 53◼

LTV（assumption） ： 45.8％

Hotel,
12.3%: 166.4 bn

Office,40.9%

Logistics,
20.0%

Residence
15.5%◼

Negative Goodwill ： 8.8 bn◼

NAV（assumption） ： 57,346 yen/unit

Retail
11.2%※LTV (assumed) and NAV (assumed) have been calculated assuming the condition after sale ofAlphabet Seven (60%)

Distributions per unit is maintainedat forecasted amount previously announced.
FP Ended January 2021

1,658 yen/unit✓ Includes gain on sale (579 yen per unit）from the sale of the quasi coownership interest (60%) in Alphabet Seven.

FP Ended July 2021

1,455 yen/unit✓ Includes internal reserves (84 yen per unit) to date and the utilization ofnegative goodwill (23 yen per unit) arising from the merger.
✓ Assumes, among others, that rent revenues are not anticipated from (1) Hotel
WBF Art Stay Namba and (2) Funabashi Nishiura Logistics I.

Target Cruising DPU ：1,400 yen～1,450 yen/unit3

２． Distributions for the 9th fiscal period
ended July 20204

２． Distributions for the 9th fiscal period ended July 2020
◼ Both Star Asia Investment Corporation (“SAR”) and Sakura Sogo REIT Investment Corporation (“SSR”) recorded distributions per unit in excessof their announced forecasts.
◼ In the fiscal period ended July 2020, the effects of COVID-19 remained negligible.
(yen）

＜SAR＞

3,490

Distributions for the 9th
fiscal period ended July
2020

3,450

3,436

3,470

yen

83

3,410

26
<Other>

3,390
3,370
3,350

<Expense related rent
business>
Decrease in utility costs
Decrease in leasing costs

45<Residence rent>

3,310

5

3,290

<Office rent>

5<Logistics rent>
Extension of contract
period

3,310

3,270
3,250

53

76

3,330

Up 126yen
3.8％ increase
compared to forecast

115<Hotel rent>
Decrease in floating rents
Partial exemption of rents

3,430

<SGA>
Early expensing ofmerger related
costs

Forecast DPU

3,436<Other leasing businessrevenues>
Cancellation penalty
Renewal fees revenue
Revenues from cost ofrestoring to original
condition

(yen）

2,560

＜SSR＞

2,540

Merger Consideration in
the Form of CashDistribution

2,489

2,520

59

2,500
<Retail rent>
Partial exemption of
rents

2,480
2,460

yen

Up 71yen
2.9％ increase
compared to forecast

51

2,440
2,420
2,400
2,380
2,360

2,418

<Office rent>
Reduction of downtime etc.

9835<other rent>
Cancellation penalty
Renewal fees revenue
Revenues from cost ofrestoring to original
condition<Other>16< Expense related rent
business>
Reexamination of period
in which fixed asset tax
and city planning tax arepayable (change ofaccounting periods) etc.

2,489

Forecast DPU

5

３．Impact and response of COVID-19 in
the 9th Fiscal Period ended July 2020

6

３． Impact and response of COVID-19 in the 9th Fiscal Period
ended July 2020 (1)OfficeBasic approach to requests for rent reductions and exemptions
The basic principle is fulfillment of the rights andobligations under the lease agreement.

＜18 properties/Total leased area:
78,255.75㎡/ Number of tenants: 205＞

As a listed J-REIT with a public nature, we respondaccording to the situation of individual tenants.

✓ Number of request for reduction or exemption of rent:
14 （3,966.57㎡） ～ request accepted: 3（1,069.99㎡）⇒ 1.4% of total leased office space（0.3% of the total leased area of the portfolio）•

Recent tenant performance/financial position•

Support measures by the government/feasibility study ofloan application⇒ Limited negative impact from COVID-19✓ Lease Renewal Status of Fiscal Period ended July 2020
Total number of rent renewals

41 （19,695.06㎡）•

Validation of current rent (assessment of market rent gap)

Upward renewals

6 （ 3,559.61㎡）•

Impact on portfolio total income

Cancellation or downward renewals

0

Residence

Logistics＜11properties/Total number of units：863/Total leased area：
56,940.79㎡＞＜10 properties／Total leased area: 154,098.65㎡／Number oftenants: 16＞✓ 2 properties were acquired by asset replacement during the 9th
fiscal period, increasing to a total of 13 properties / 967 tenants.
（Total leased area at the end of the fiscal period：63,303.09㎡）✓ Occupancy rate at the beginning of the fiscal period： 98.0％～ Occupancy rate at the endo of the fiscal period： 98.0％✓ Average occupancy rate during the fiscal period： 97.3％✓ Occupancy rate at the end of the fiscal period： 97.0％⇒ The spread of COVID 19 has prevented people from moving due toevents such as back-to-school or company personnel changes. As
a result, there was a slight period of downtime in single-type units.
✓ There is no rent reduction or exemption for residential tenants.

⇒ No negative impact from COVID-19✓ The tenant of "Funabashi Nishiura I Logistics", which wasscheduled to be cancelled at the end of April 2020, extended
the contract until the end of January 2021.
⇒ Factor contributing to decline in fiscal period ending in 2021

※The total leased area, the number of tenants and the total leased area of the portfolio in this page are the simple total of the figures of Star Asia Investment Corporation as of the end of January 2020 and Sakura Sogo REIT
as of the end of 12 2019.

7

３． Impact and response of COVID-19 in the 9th Fiscal Period
ended July 2020 (2)RetailHotel＜4 properties／Total leased area：108,049.23㎡／Number oftenants：96＞✓ Number of requests for rent reduction and exemption：
50 （ 38,915.54 ㎡）✓ Accepted cases ： 24 （ 33,566.13 ㎡）✓ Impact on Revenue： ▲2.2％⇒ The responses have been decided by taking into account thesituation of each individual tenant (trends in sales, liquidity on
hand, etc.) in detail and the support measures taken by thenational and local governments.
⇒ 2.2% (▲28million yen） decrease from expected gross revenues（from January to July 2020）in the retail portfolio⇒ Negative impact on the performance of most of the retailtenants has been limited due to the nature of their business,selling daily necessities.
✓ Limited impact on FP10 and beyond (Already accepted requests
for rent reductions and exemptions as of September 10, 2020
have been incorporated into the earnings forecast.)✓ We will continue to monitor the status of commercial tenants andrespond appropriately.
Rent reductions and exemptions ratio of projected total revenues
from Retail portfolio for the fiscal period ending July 2020
Total amount of rent
reduction and exemption＜8 properties／Variable rent ratio（FP9）：0.4％＞✓ Due to the impact of COVID 19 infection, the number of guests
dropped dramatically.
✓ Number of requests for reduction or exemption of fixed rent：7⇒ Accepted case：1 （Factor contributing to decline in FP9）
✓ Tenant of "Hotel WBF Art Stay Namba" applied for civil
rehabilitation law⇒ Lease agreement has been terminated with the tenant as of July28, 2020.
（Rent unpaid until the cancellation date was appropriated fromsecurity deposits.）⇒ Concluded a memorandum on hotel management with
Kachikaihatsu Co., Ltd., a subsidiary of Star Asia Group, —wethink it would be best to look for a hotel operator
as the successor tenant.
⇒ We are now choosing a successor tenant from several potential
operators, including Kachikaihatsu✓ We will continue to monitor occupancy status of the hotels and thefinancial status of the tenants, and take measures as necessary.
Rent reductions and exemptions ratio of projected total revenues
from the Hotel portfolio for the fiscal period ending July 2020

Floating rent0.4%

2.2%※The total leased area, the number of tenants and the total leased area of the portfolio in this page are the simple total of the figures of Star Asia Investment Corporation as of the end of January 2020 and Sakura Sogo REIT
as of the end of 12 2019.

8

４．Merger

9４． Merger (1)◼ Increase in AUM will enhance revenue stability and enable the development of a variety of investment strategies (Active Management) that will contributeto the maximization of unitholders' profits.
◼ Participation of Nippon Kanzai Co., Ltd. and Tokyo Capital Management, both which have excellent track records in property management, as "subsponsor" will maintain and improve the profitability of properties comprising the portfolio.
Management and support systems
to maximize unitholder profits

SAR
SAR<Star Asia REIT>
Number ofproperties

35

Asset size

103.8 bn

Asset size

166.4 bn

Asset Management Company

Assets in Tokyo areas

70.4％

Number of properties

53

Star Asia Investment
Management

Number of tenants

1,450

LTV
48.1％

（as of the end of
July 2020）

Asset type：
Office, Residence, Logistics,
Hotel

SSR
<Sakura SOGO REIT>

Hotel,
12.3%
Logistics,
20.0%

SponsorOffice40.9%⚫ Provide properties, warehousing
functions, human resources.

18

LTV

45.8％

Asset size

62.6 bn

NAV per unit

57,346 yen

Goodwill

8.8 bnCredit Rating（JCR)

A-（stable)

Ownership of Sponsor

14.6％（as of end of July
2020）

46.2％

Asset type：
Office, Retail, Residence, Others※Descriptions on this page exclude Alphabet Seven (60% share in quasi co-ownership) scheduled for sale on December 1, 2020.

Star Asia Management LLC.
⚫ Provide supports to the REIT and theAsset Management Company

Residence,
15.5% Retail,11.2%

Number ofproperties

LTV⚫ Maximize unitholder profits throughcontinuous active management⚫ Application of various measures
beyond existing concepts

Sub-Sponsor
Nippon Kanzai
Tokyo Capital Management⚫ Support for property management
and operations⚫ Provide information gathering
capabilities through extensive
networks※LTV and NAV per unit are figures after the sale of Alphabet Seven (60% share).

10４． Merger (2)◼ As the result of the merger, negative goodwill of approximately 8.8 billion yen is expected to be generated.
◼ We intend to utilize negative goodwill going forward in order to stabilize DPU.

SSA
（Company Absoｒbed）

Post-merger B/S
SAR

Negative Goodwill ： 8.8 bn< Market Valued B/S as of July 31, 2020>➢ Based on calculation of the merger price based on SAR’s investment unit price as of

Total assets
67.9 bn
Market value ofnet assets
34 bn

Post-merger
debt

the end of July 2020, “market value of net assets” was greater than the “merger

AssumedLiabilities
33.9 bnprice”, and negative goodwill of approximately JPY 8.8 billion was generated.

Negative
Goodwill 8.8bn
Merger price25.1 bn

Post-merger

As of end of July 2020
Unit price 42,400 yen

Post-merger
Net assets

592,741 units

SAR unit price

Number of newly
issued units

Negativegoodwill

Accounting treatment for negative goodwill

B/S◼

Scheduled to be recorded as temporary difference adjustment reserve in net assets.

P/L◼

To be recorded as an extraordinary gain in the first fiscal period after the merger (ending January 31, 2021).

◼

It will not be appropriated to distributions for the post-merger 1st fiscal period (ending January 31, 2021). At least 1% of the initial reserve amountaccumulated in the temporary difference adjustment reserve is continuously drawn down and added to unappropriated retained earnings at the end of the
fiscal period.

◼

It may be used flexibly as an additional source of distributions added to net income.

◼

The current policy is that it is intended to be used to stabilize distributions in the case of the occurrence of unexpected or incidental losses.

Impact on distributions

11

５．Financial performance forecasts for the
10th Fiscal Period (ending Jan. 31, 2021)
and 11th Fiscal Period (ending July 31, 2021)

12５． Financial performance forecasts for the 10th Fiscal Period(ending Jan. 31, 2021) and 11th Fiscal Period (ending July 31, 2021) (1)10FP Distribution per unit (Forecast)
Last announcement (March 2, 2020)

1,658 yen／unit

1,700

（yen）
<Hotel rent>
Zero floating rent
Zero rent from 1 Hotel

1,680<Non operating
expenses><Residence rent>

Current Forecast
Of which, gain on sale

1,658 yen／unit
579 yen／unit<Main events since last announcement >（＋） Extended the lease contracted with Logistics

9

1,660

<Retail rent>
Revisions based onconservative
assumptions

1,640

20

10

5

32

<Logistics rent>
extended the lease
contract

<SGA>

15

11

4
<other><Expense related rent
business>cost reduction

1,620

1,658

tenantCost reduction

1,658

1,600

（－） Zero floating rent from hotels

Zero rent from Hotel WBF Art Stay Namba

1,580

1,560

11FP Distribution per unit (Forecast)
Last announcement (March 2, 2020)
Current Forecast

1,455 yen／unit

Forecasted DPU

（yen）
1,460

<Office rent>
advance cancellation
notice14

1,400<Main events since last announcement ＞（－） Zero rent from Funabashi Nishiura Logistics I
Zero floating rent from hotels
Zero rent from Hotel WBF Art Stay Namba

1,455

23
46

<Logistics rent>
Down-time due tocancellation<Utilize Negative
goodwill>
Negative goodwill
from merger

30<Expense related rent
business>
Increase leasing fee

1,380<Hotel rent>
Zero floating rent
Zero rent from 1 Hotel
1,360

Targeted Cruising DPU ：1,400 yen～1,450yen/unit<Residence rent><Retail rent>
Revisions based onconservative
assumptions

1,455 yen／unit
84 yen／unit
23 yen／unit

3
11

1,440

1,420
Of which, utilization of Internal reserves
to dateOf which, utilization of negative good will

Current Forecast

32

1,455
84

<Utilize internal
reserves>
Internal reserves
to date<Non operating
expenses>

1
1,340

Forecasted DPU

Current Forecast

13５． Financial performance forecasts for the 10th Fiscal Period(ending Jan. 31, 2021) and 11th Fiscal Period (ending July 31, 2021) (2)- Issues for 10th fiscal period and 11th fiscal period and actions to be taken ◼ For certain logistics facilities and hotels, there are some properties which have issues, and we will particularly focus on attracting new tenants forthese properties.
◼ Regarding suburban type commercial facilities, they are recognized as assets for replacement (i.e. assets for sale) in the mid-term.

Recognition of current situation and issues for the
fiscal periods ending Jan. 31, 2021 and July 31, 2021

Office◼ It is anticipated that vacancies will generally increase to a certain extent.
◼ Expect an overall steady decrease in occupancy rate
◼ Concerning mid-sized offices held by SAR, there are many potential tenants,
and rent reduction is not anticipated.
◼ In the fiscal year ended July 2020, we observed 7 new contracts and 7
cancellations (7 and 10, respectively, for the same period last year), indicatingthat no negative impact from COVID-19 were apparent.

Retail◼ Of the requests for rent reductions and exemptions received , for tenants
which have temporarily closed down business or which are experiencing a
sharp decline in sales etc., rent reductions for a fixed period have been
implemented and completed.
◼ The commercial facilities held by SAR are all close to residential areas, andthe main tenants sell daily consumption goods, and future impact is believed
to be negligible.

Residence

Logistics

Hotel◼ The occupancy status of family-type properties is favorable.
◼ Single-type / compact-type properties which have been cancelled have atendency towards prolonged down-time (period during which rents are notreceived).

◼ The leasing period with the current tenant of “Funabashi Nishiura Logistics I”
is scheduled to end at the end of January 2021.
◼ There is strong potential demand for logistics facilities, and in an insidepreview event of the property which was held, 12 companies participated.

◼ Attract successor tenant for “Hotel WBF Art Stay Namba”.
◼ Negotiations for rent reduction requests received are continuing with tenantsfrom other hotels as well.

Actions to be taken regarding forecasts andissues.
◼ Establish a longer down time (vacancy period during which rents will
not be generated)◼ Although rent gaps exist, increase in rents have not been anticipated.
Focus on leasing of vacant space at an early stage◼
◼

No tenants currently under negotiation for reduction and exemptionof rents.
Make efforts to understand the business condition of tenants, andprepare for when new requests for rent reduction or exemption arereceived.

◼ Focus on leasing at early stage and maintaining and improving
occupancy rates, such as by changing the marketing method to attract
tenants for single-type properties.

◼ A certain period of down time has been anticipated for “Funabashi
Nishiura Logistics I”.
◼ Leasing of the property at an early stage.

◼ For the property referred to on the left, rents have been set at zero for
2 periods.
◼ Signed a Memorandum Agreement regarding Hotel Operations withKACHIKAIHATSU Co. Ltd. (Star Asia Group)◼ Proceed with negotiations with multiple operator candidates, and sign
a lease agreement with the best operator.

14５． Financial performance forecasts for the 10th Fiscal Period(ending Jan. 31, 2021) and 11th Fiscal Period (ending July 31, 2021) (3)- Market views for each asset type -Market views
With respect to asset types incorporated by Star Asia Investment
Corporation, market views for each asset type have been described.
For the time being, an economic downturn and effects on the real
economy due to COVID-19 have been assumed to a certain extent.

OfficeIn the Tokyo business district, there is an increasing trend of vacancy rates, however rent
levels for new rent offerings remain flat.
Currently, there is a clear trend towards return of excess space, and downsizing,transferring, and business withdrawal etc. by venture companies which can make quick
decisions.
There are similar moves in the Osaka business district as well, however, they have not seen
an increase in vacancy rates.
At office buildings, for the time being, there is a continuing trend towards moderately
increasing vacancy rates.

RetailNationwide department stores sales have seen a sharp decrease from the same month ofthe preceding year; however, the business performance of daily living related commercial
facilities nearby residential areas have shown strong performance. Bipolarization isprogressing depending on the location and tenant characteristics.
Such trend is foreseen to continue, and it is believed that the level of profitability amongcommercial facilities differ depending on the industry type and business type of the tenants.

Logistics
The vacancy rates for large multi-tenant type logistics facilities well continue to be at low
levels.
Cargo volume has continued to increase, and given the background of strong demand
towards logistics facilities floor space, rent levels remain strong.

Even if floor space is reduced impacted by deteriorating business performance due to
COVID-19, it is believed that occupancy rates and rent levels will remain stable for the time
being, supported by an increase in the distribution volume of daily consumer goods andstrong demand for e-commerce related services.

Residence
During the declaration-of-emergency period, the number of new housing lease contracts
decreased.
The current situation is that a decrease in occupancy rates are seen for a portion of singleperson housing; however, the number of new lease contracts for residential in general arerecovering, and rent levels are also stable.
Residential properties which form the basis of living may see a temporary fluctuation in
occupancy rates; however, seen in the mid-to-long term, it is believed that rents andoccupancy rates will remain stable.

Hotel
In addition to a sharp reduction in inbound demand, demand for domestic accommodation
has also decreased, and the business performance of hotel operators have deteriorated.
According to the Japan Tourism Agency, the number of guests staying at accommodation
facilities in April and May of this year was 80% less than the same months of last year, andthe average occupancy rates at accommodation facilities hovered at levels below between
10% -20%, and have started to slowly recover from June of this year, but is far from levels
before the inception of COVID-19.
Increase in demand among domestic travelers is anticipated from the ‘Go To’ Campaign,
however, the unclear environment will continue for the timing of recovery of accommodation
demand.

15

６． Operating results for the 9th fiscal
period ended July 2020

16

６．Operating results for the 9th fiscal period ended July 2020 (1)- Occupancy rate status <Star Asia Investment Corporation – Status of occupancy rates forthe fiscal period ended July 31, 2020>【Offices】 In the current fiscal period, no impact from COVID-19 wasseen, and occupancy rates remained stable.
【Residences】Prolonging of down time was slightly seen for cancelledresidences, so vacancy rates tended to increase, however,
now it is recovering.
【Logistics】 No change in particular.
【Hotels】 Occupancy rate has declined due to cancellation of leaseagreement with the tenant of “Hotel WBF Art Stay Namba”.

< Former Sakura Sogo REIT Investment Corporation - Status ofoccupancy rates for the fiscal period ended July 31, 2020>【Offices】 In the current fiscal period, no impact from COVID-19 wasseen, and occupancy rates remained stable.
【Retail】 Effects from COVID-19 were negligible, and occupancy rates
were stable.
【Residences】A small increase in down time was seen for cancelledresidences which lifted vacancy rates slightly, though
they are now, recovering.
【Others】 No change in particular.

100.0%

100.0%

Other, 100.0%

99.0%
98.0%

Total, 98.5%
Retail, 98.5%
Office, 98.4%

99.0%

Office, 98.6%
98.0%
97.0%

Logistics, 97.8%

97.0%

96.0%

Total 97.1%

96.0%

Residence,…

95.0%

95.0%

Residence,…

94.0%

94.0%
93.0%

93.0%

92.0%

92.0%

Hotel, 91.3%

91.0%

91.0%
90.0%

90.0%

2020年1月末
2020年2月末
2020年4月末
2020年5月末
Jan2020 Feb
2020 Mar 2020年3月末
2020 Apr 2020
May 2020
Jun 20202020年6月末
Jul 2020 2020年7月末

2020年2月末 2020年3月末 2020年4月末 2020年5月末 2020年6月末 2020年7月末
Feb 2020
Mar 2020
Apr 2020
May 2020
Jun 2020
Jul 2020
Officeオフィス

Feb 2020

Residence
住宅

Mar 2020

Logistics
物流施設

Apr 2020

ホテル
Hotel

May 2020

Office
オフィス

Total
全体

Jun 2020

Jul 2020

商業
Retail

住宅
Residence

Other
その他

Total
全体

Jan 2020

Feb 2020

Mar 2020

Apr 2020

May 2020

Jun 2020

Jul 2020

Office

98.3%

98.3%

98.3%

98.3%

97.9%

98.6%

Office

99.5%

99.0%

99.0%

99.5%

99.5%

100.0%

98.4%

Residence

96.6%

97.7%

96.5%

94.4%

94.4%

95.4%

Retail

98.8%

98.8%

98.7%

98.6%

98.6%

98.5%

98.5%

Logistics

97.8%

97.8%

97.8%

97.8%

97.8%

97.8%

Residence

99.3%

99.6%

98.7%

97.4%

97.0%

98.2%

98.4%

Hotel

100.0%

100.0%

100.0%

100.0%

100.0%

91.3%

Other

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Total

99.0%

99.0%

98.8%

98.6%

98.5%

98.7%

Total

98.0%

98.1%

98.0%

97.7%

97.6%

97.1%

98.5%

17

６．Operating results for the 9th fiscal period ended July 2020 (1)- Office Status of rent gap and change in tenant as of the end of the 9th FP Occupancy rate status Status of Tenant Transfers (note1)(note2)

Change in New contract / Cancellation(note1)(note2)＜July 2020＞
100.0%
90.0%
80.0%

（4)
（4）
（2）
（5）

＜ From Feb 2019 to Jul 2019 ＞

Increase in rent,…

cases
Area (㎡)

New contract, 1.6%
（6）

70.0%

Early cancellation→ new contract,
4.0%

60.0%

（35）

cases
Area (㎡)Tenants renewed
in 9th FP：41

Cancellation

7
1,646.88

10
1,941.93

Increase in rent, 15.1%

20.0%
10.0%

cases
Area (㎡)

No change, 68.7%

24.1%
Rent gap（0%以上10%未満）
0% to less than 10%
17.8%
Rent（0%未満）
gap less than 0%

Total

Total leasable
area

53,703.19 ㎡

25,491.82 ㎡

79,195.01 ㎡

Leased area

53,025.20 ㎡

25,088.45 ㎡

78,113.65 ㎡

For office

48,577.09 ㎡

23,568.38 ㎡

72,145.47 ㎡

195,973.21

13
5,289.42

For other

4,448.11 ㎡

1,520.07 ㎡

5,968.18 ㎡

128

85

213

Averageleasable area

424.90 ㎡

295.16 ㎡

373.13 ㎡

Average lease
per Tsubo

11,868 yen/tb

15,988 yen/tb

13,264 yen/tb

New contract

Cancellation

7
1,307.44

7
1,323.23

Number oftenants

Contract Rent Period of Office Portfolio

Change in tenants in the 9th fiscal period (注3）

58.0%,（賃料ギャップ
Rent gap
10%以上）
10%or
more

SSR

Cancellation※The ratio has been calculated using the gross area where tenant changes occurred within the 9 th fiscal period(23,499.54㎡) as the denominator, and figures in () are the number of tenant changes.

＜Diversification status of rent gap＞

SAR

New contract＜ From Feb 2020 to July 2020 ＞

30.0%

0.0%

New contract＜ From Aug 2019 to Jan 2020 ＞

50.0%
40.0%

Office Tenants - Basic Data

＜Rent per Tsubo＞

Rent gap exists at
1,347 yen/tb (10.6％)of the total

レントギャップ
Rent
gap less than0%未満
0%

Rent
gap 0% to lessthan 10%
レントギャップ
0%以上10%未満

59

67
20000.0 ㎡
16000.0 ㎡

Rent gap exists at
82.1％（based on floorarea) of the total

Rent gap 10% or more
レントギャップ
10%以上

15,019/坪¥15,019
yen / tb

15,582 /¥13,582
yen坪/ tb

12000.0 ㎡

57

42

23

8000.0 ㎡
4000.0 ㎡
0.0 ㎡
第10期
10FP

第11期
11FP

第12期
12FP

2021年1月期
2021年7月期
2022年1月期
Nearby Market
Contracted Rent
Jan 2021
Jul 2021
Jan 2022
Rent Unit Price
Unit Price※In this slide and onwards, unless particularly stated otherwise, the descriptions are based on the portfolio after the merger.

第13期
13FP

第14期以降14FP

2022年7月期
Jul 2022

2022年8月以降
or after18

６．Operating results for the 9th fiscal period ended July 2020 (3)- Retail Retail Tenants - Basic Data
Total leasable area
Total leased area（as of Dec 31, 2019）

Tenants Breakdown by Business Type （as of end of July 2020）
109,400.75 ㎡
108,049.23 ㎡

Total number of tenants

116

Requests of rent reduction andexemption → accepted (cases)

14

Requests of rent reduction andexemption → accepted (area)

33,566.13 ㎡

Impacted on revenue for FP ended
July 2020▲2.2％

Tenants Breakdown by
Business Type

Number ofleaseagreements.

Area(㎡）

Daily necessities (Food)

41,927.17

10

Daily necessities (Clothing)

6,295.57

13

Daily necessities (Others)

24,379.17

Other product sales

14,235.07

16

Clinic540.53

4

Private tutoring schools

307.11

0.3％

3Child care and day care

367.01

0.3％

3Sports clubs

4,545.39

4.2％

3

Food and beverage

1,604.23

1.5％

13Entertainment and amusement

9,449.22

8.8％

8

Other services

4,064.20

3.8％

31

107,714.68

100％

116

Total

81.1％

➢

12
➢

➢
➢

Even under the state of emergency
situation due to spreading of COVID-19,
there was no significant damage to thebusiness performance of most tenants
which handles daily necessities (whichmake up for 81.1% of the total rented
floor area of commercial facilities).
We sincerely responded to requests
received from tenants for reduction or
exemption of rents, taking int accountthe business condition, financial
condition, and the possibility of utilizing
public support measures by individual
tenants.
As of current, there are no tenants withwhom discussions are continuing for
reduction or exemption of rents.
The impact on portfolio profitability due
to reductions or exemptions of rents islimited.

Implementing construction works leading to value Increase<Environmental Considerations>➢ From the viewpoint of operations andmanagement of properties paying
consideration to the environment, construction
works were implemented to switch to LED
lighting which will reduce electricity
consumption.

➢➢

Going forward, construction works which
pay consideration to the environment willcontinue to be considered.
Furthermore, we will consider construction
works which will contribute to theimprovement of tenant satisfaction.

＜Suroy Mall Chikushino＞＜ Suroy Mall Nagamine＞

Construction works to switch to LED downlights in the space
under the eaves
168 downlights were switched to LEDs from florescenttubes.

Construction works to switch the outside lights in the parking lot to
LED lights
7 units in the 1st floor parking lot, and 13 units in major areas of therooftop parking lot.

BeforeBefore

After

After

19

６．Operating results for the 9th fiscal period ended July 2020 (4)- Residence Occupancy rate （note4）

Transition of new contracts and cancellations for single-type housing.
UP Imazato100.00%

100.00%UP Ryokuchi koen, 100.00%
UP Sekime, 99.34%

1600.00 ㎡

New contract
新規面積
area

90件

New
contract
新規件数
number of tenants

80件

In the fiscal year ended July 31, 2020,
The number of newly contracted housing units wasless than the number of cancelled housing units.
Prolonged down time.

UP Gyotoku, 98.04%

1400.00 ㎡

Shiroi rojiman, 98.06%

1200.00 ㎡

UP Kashiwa, 97.63%

1000.00 ㎡

50件

UP Ichigao, 97.11%

800.00 ㎡

40件

600.00 ㎡

30件

UP Daikanyama,
94.10%

400.00 ㎡

20件

UP Yoyogi, 94.02%
UP Koenji, 91.69%

200.00 ㎡

10件

95.00%

90.00%

85.00%

UP Azabujuban,
94.80%

80.00%UP Gokokuji,
84.96%

75.00%

Cancellation
解約面積
area
Cancellation
解約件数
number of tenants

1800.00 ㎡

UP Namba, 90.07%(UP=Urban Park)

0.00 ㎡

70件

60件

0件
第7期
7FP
2019年7月期

第8期
8FP
2020年1月期

第9期
9FP

2020年7月期※ singles-type housing : UP Namba, UP Gokokuji, UP Koenji

Change in Total Monthly Rent and Average Occupancy Rate （note 5）¥125,000,000

98.0%

100.0%

97.7%
97.2%

¥120,000,000

98.0%
96.0%

Monthly total rent price
月額賃料総額

94.0%
92.0%

¥115,000,000

90.0%
88.0%

¥110,000,000

86.0%
84.0%

¥105,000,000

82.0%¥100,000,000

80.0%
7FP
7期末

8FP
8期末

9FP
9期末

【Recognition of the Current Situation】➢
For family-type housing, there were not as many moving in and out oftenants as assumed, and high occupancy rates have been maintained.
➢
On the other hand, for singles-type housing, a decline in occupancy rates
were seen from April, and particularly in areas favored by students.
Potential tenants are decreasing because it is not necessary for students to
go to campus where remote classes are being held. Going into the newsemester, less students are moving, and there is a trend towards
prolonged down time.
➢
As of current, a decline in rent levels has not been recognized.
➢
The reduction in the total amount of monthly rents is due to the decline inoccupancy rates. The total amount of rent revenues for the fiscal year has
only slightly declined.
【Future Policy】➢
Focus on new tenants leasing activities for single-type properties➢
Instead of conducting marketing targeting students, make efforts to searchmore widely for new tenants, and to improve occupancy rates.

20

６．Operating results for the 9th fiscal period ended July 2020 (5)- Logistics Diversification of Current Contract Renewal Period (based on floor area)※（ ） Number of tenants

70,000 ㎡
60,000 ㎡
50,000 ㎡
40,000 ㎡（４）30,000 ㎡
20,000 ㎡
10,000 ㎡

（２）

（２）

（２）

（１）

0,000 ㎡
11FP
11期

12期
12FP

13FP
13期

Jul 2021
2021年7月期

2022年1月期
Jan 2022

Jul 2022
2022年7月期

14FP
14期
Jan
2023
2023年1月期

15FP
15期

Jul 2023
2023年7月期

16FP
16期以降

Jan 2024
2024年8月以降

9th fiscal period (2020/1-2020/7)
Contracts renewed: 2 tenants➢Contracts were renewed/re-signed under
the same terms and conditions as before.
Contracts extended: 1 tenant➢
The tenant of Funabashi Nishiura Logistics
was scheduled to cancel the lease at theend of April 2020; however, the lease was
extended to the end of January 2021.
10th fiscal period (2020/8-2021/1)
No tenants scheduled to renew contracts➢
Focus on attracting new tenants for
Funabashi Nishiura Logistics I scheduled
to be cancelled at the end of January 2021.
➢
It is believed that there are many potential
tenants for the property given its locational
characteristics.

Leasing activities for Funabashi Nishiura Logistics I and past track record of attracting new tenants.
＜Leasing status of Funabashi Nishiura Logistics I＞<Key Points of Locational Competitiveness>➢
It is located in the Chiba Bay Area where there aremany logistic facilities and there is high demand, and it
is also situated 1.4km away from the nearest station,and it is also appealing from the perspective of securinglabor.
➢
It is located very close to the Wangan Ichikawa IC on
the Metropolitan Expressway Bay Shore Route, withgood access to not only central Tokyo but also to othermain cities in the Kanto region.
<New Tenants Leasing Activities>➢
Leasing activities underway using locational
competitiveness as an appeal point.
➢
Conducted inside preview events⇒ more than 12 previews＜ Attracting New Tenants at Baraki Logistics >6-months’ advance
cancellation notice

Cancellation

Assumeddown time

Actual down time

Inside preview was not allowed due tothe desire of previous tenants, andactual inspection was also notpossible. However, an agent who has
a track record of attracting tenants forthe property was appointed, andtenant leasing activities conducted.
Leasing activities conducted byappeal of good access to populatedareas and proximity to nearest
station.
As a result, down time was reducedby 2 months compared toassumptions.

21

６．Operating results for the 9th fiscal period ended July 2020 (6)- HotelTransition of gross rent amounts (index)/ rent systems/ causes of rent increases and decreases
Hotelrent Actual / Forecast (Indexation)
ホテル賃料収入実績／予想（指数化）◼ In the 9th fiscal period, a small
amount of floating rent wasreceived prior to COVID-19.
◼ At one hotel, rent was exempted
for a fixed period (it has been
agreed that the exemptedamount will be added to futurerents)◼ In and after the 10th fiscal period,
floating rents have been set atzero.
◼ For 1 hotel rent revenues havebeen set at zero for the 10th and11th fiscal periods.

Property nameAcquisition
Period

120.0

8.2

Fixed
rent
固定賃料比率

1.9100.0

変動賃料比率
Floating
rent

0.4

Forecast
■予想

0.0

0.0

91.5

91.7

10FP
2021年1月期
Jan
2021
第10期予想Forecast

2021年7月期
11FP
第11期予想Jul 2021
Forecast

10FP
Jan 2021
Forecast

11FP
Jul 2021
Forecast

80.0
60.0

100.0

101.2

95.9

40.0
20.0
0.0

8FP
9FP
7FP
2019年7月期
2020年1月期
2020年7月期
Jan 2020
Jul第9期
2020
Jul
2019
第7期
第8期
ActualActualActual※The index has been prepared by calculating fixed rent on the date of Jul 2020

Fixed Floatin
Rent g rent

R&B Hotel Umeda East

2016.4○－

Smile Hotel Namba

2016.4○○

Best Western Tokyo Nishi-kasai

2017.3○○

Best Western Yokohama

2017.3○○

Hotel WBF Fukuoka Tenjin Minami

2018.8○○Glansit Akihabara

2018.8○－

Best Western Tokyo Nishikasai
Grande2018.8○○

Hotel WBF Artstay Namba

2018.8○○

Factors
affectingfluctuation of
fixed rents

Factors
affectingfluctuation of
floating rents

8FP
Jan 2020
Actual9FP
Jul 2020
ActualThere is alease agreement where
fixed rents change
depending on the season(same for each fiscal
period)At one hotel, rent has been
exempted for a fixed period(for the exempted portion, it
has been agreed that fixed
rent amounts will be
increased for a certain
period starting fromJanuary 2021).
Tenant of “Hotel WBF Art
Stay Namba” moved out.

Decline in inbound demand
due to the Japan-South
Korea issue. Reduction insales due to opening of
nearby hotel.

Sharp decrease in hotel
guests due to the effects of
COVID-19.

For “Hotel WBF Art Stay
Namba”, rent revenues
have been set at zero.

Due to the effects of COVID19, business performance
has not recovered, and nofloating rents are anticipated.

For “Hotel WBF Art Stay
Namba”, rent revenues
have been set at zero.
Increased portion of fixed
rents expected fromtenants who have been
granted exemptions in thefiscal period ended July 31,
2019.

Due to the effects of
COVID-19, businessperformance has notrecovered, and no floating
rents are anticipated.

22

６．Operating results for the 9th fiscal period ended July 2020 (7)- Financial standing –■LTV is expected to become lower following the merger. 48.1% (end of July 2020) → 45.8% (assumed after the merger and assets replacements)■In the refinancing of the debt of former Sakura Sogo REIT Investment Corporation executed at the end of August 2020, the same borrowing conditions
as for Star Asia Investment Corporation was achieved.
Main financial indicators

Bank formation (as of August 31, 2020)
MUFG Bank, 0.8%

8FP

9FP
Jul 2020

SSR
July 2020

Post-merger

LTV

47.0％

48.1％

46.2％

45.8％（※）

ORIX Bank Corporation,
1.2%

Balance ofborrowings

51,580
million yen

54,320
million yen

29,200
million yen

83,520
million yen

The Bank of Fukuoka, 2.5%

Long-term debt ratio

100.0％

100.0％

83.2％

97.4％

2.1 years

2.3 years

1.2 years

2.3 years

4.4 years

4.4 years

3.8 years

4.4 years

Resona Bank, 8.4%

Average interest rate

0.64％

0.65％

0.80％

0.71％

Aozora Bank, 9.3%

Fixed interest rate
ratio

85.8%

81.5％

62.0％

78.7％

Sumitomo Mitsui Trust Bank,
10.2%

Average remaining
period to maturity
Average borrowing
period※The post-merger LTV is calculated assuming the condition after sale of Alphabet Seven (60%).

Sumitomo Mitsui Banking,
28.0%

The Nishi-Nippon City Bank,
3.0%

Mizuho Bank,
18.7%

Shinsei Bank,
16.2%

15,450■Fixed14,000■Adjustable

12,0009,450
10,000

8,960

8,000

1,660

6,000
4,000
2,000

The Dai-ichi Life Insurance ,0.6%

Credit Rating

Diversification of repayment dates (as of August 31, 2020)(mln.）
16,000Mizuho Trust & Banking, 1.0%

9,790

9,750

8,500

Long-term Issuer
RatingJapan Credit Rating Agency,
Ltd. (“JCR”)

A－(Stable)

8,250
7,300

5,600
4,840

5,080
1,080
7,300

Rating Agency

6,000

4,000

10FP

11FP

12FP

13FP

14FP

16FP

17FP

18FP

19FP

2021/1 2021/7

2022/12022/72023/1 2023/7 2024/1

15FP

2024/72025/12025/7 2026/1

20FP

23

7．Future Initiatives

24

７．Future Initiatives (1)Portfolio Management Strategy◼ For the time being, we will pursue investment opportunities centered around residential and logistics facilities which are believed to be
defensive asset types.
◼ Property selection will be conducted carefully, by determining the effects of COVID-19 on real estate sale transactions and the leasing
market.
Short-term and mid-term views
towards each asset type

Progress towards mid-term objectives

Asset size of JPY 200 billion by 2020
Asset
Size
資産規模

2,000

Number
物件数 of Properties

Specific Management Policy

OfficeOfficeFor mid-sized offices, the effects of COVID-19 arelimited, and there is strong potential demand, andstable revenues is anticipated.

We will continue to carefully consider investments in
mid-sized offices located in the highly populated
metropolitan areas, mainly in the Tokyo area.

60

1664
50
1,500
40
1,000

30

614

20

500

RetailRetailAmidst COVID-19, the business performance ofcommercial tenants which handle living necessity
products was strong. However, it is highly likely that
consolidation will occur among commercial facilities,
given reduction in the population and progress of ecommerce etc.

Suburban-type local commercial facilities will betargeted for replacement in the mid-term, andinvestments will be carefully considered by determining
the effects of COVID-19 and analyzing the future
potential of the region based on the commercial zone
population and demographics.

10
0

0
1FP

1.
2.

3.
4.

2FP

3FP

4FP

5FP

6FP

7FP 8FP 9FP

Asset size at time of listing:
JPY 61.4 billion
Asset size as of the end of July 2020, after acquiringproperties while conducting capital increase throughpublic offerings 3 times plus conducing assets
replacement 5 times:
JPY 103.8 billion
Asset size after merger with SSR:
JPY 166.4 billion
With respect to the goal upheld to reach “JPY 200
billion by year 2020”, although a pipeline has beenarranged, the goal will be reexamined given
the turmoil due to COVID-19.

Residential

Residential

There is continued strong demand for “residence”
which forms the foundation of living, and it is an asset
type which enjoys stable revenue in populated areas.

Investments in highly competitive properties
including in terms of rent levels will be conducted,
taking into account demographic analyses based on
the mid- to long-term macro-economic environment.

Logistics

Logistics

Areas within the Tokyo business district which arealso close to populated areas with strong tenant
demand are anticipated to continue to achieve stablerevenues going forward.

Investments in logistics facilities will be considered
continuing to focus on properties with highsubstitutability of tenants, and located in the Tokyo
area (particularly within 30 kms of “Tokyo”
station).

Hotel

Hotel

It is believed that the effects of COVID-19 will remain
for a while, and it will be difficult to properly determine
risks versus returns.

New acquisitions will not be considered for thetime being, and we will endeavor to maintain the
profitability of currently held hotels.

25

７．Future Initiatives (2)Efforts towards future external growth (pipeline status)
Properties with Preferential Negotiation Rights and Star Asia Group’s Pipeline➢ The pipeline of properties for which we hold rights of first refusal range from properties which are stably operated and can be immediately incorporated
into our profile to properties which are under development. The pipeline will contribute to future increase in asset size.

OHA Building(Note 2)
Expanded Tokyo
Area

OfficeNishi-Ikebukuro 1Chome bldg.
Tokyo Area

Retail(Note 1)

Urban Park
Mitsuike Koen
Tokyo Area

JPY29.2bn

Total Appraisal：

Properties with Preferential Negotiation Rights

Residential

Urban Park
Tokiwadai Koen
Tokyo Area

HAKUSAN HOUSE

Residential

Other Properties Managed by the Sponsor Group (as of July 31,2020)

Tokyo Area

KAMIKITA HOUSE

Student Housing

Total Appraisal Value:Tokyo Area

Student Housing

URBAN CENTER
HakataOther Area

URBAN CENTER
Midousuji

OfficeTokyo Area

Logistics, 6.7%

Hotel
74.7%

Other
46.8%

Asset Size targets

Post-merger
Asset Size

JPY166.4bn

Tokyo
area53.2%

Asset Sizetarget by
2020

Example of the properties
managed by Star Asia Group
Higashiougijima Center(Logistics)

OfficeMiyamaedaira
Residence Project

JPY60.1bn

Retail18.6%

Other Area

Residential•

Housing development
project , which Star Asia
Sogo Kaihatsu is involved•Entered into a new
preferential negotiationagreement with Star Asia
Sogo Kaihatsu

Aim to further expand
assets over medium tolong term

JPY200bn(Note 1):As of the date of this document, among the properties with priority negotiating rights held by SAR, the total amount of the price is indicated for properties for which a priority negotiating price has been determined, and the total amount of the most recent appraisal
value or survey price is indicated for properties for which a priority negotiating price has not been determined.
(Note 2): “Expanded Tokyo Area” stands for suburban Tokyo (outside 23 wards) and major cities in Kanagawa (excluding Kawasaki -shi and Yokohama-shi) and Saitama for offices and retail properties.

26

8． Actual and forecasted distribution

27

8．Actual and forecasted distribution (1)Change in actual distribution and distribution excluding transient factors
3FP

4FP

5FP

6FP

7FP

8FP

9FP

10FP forecast

11FP forecast

Forecasted
distribution

2,170 yen

2,019 yen

1,375 yen

1,790 yen

1,750 yen

1,385 yen

1,655 yen

1,658 yen

1,455 yen

Actualdistribution

2,211 yen

2,038 yen

1,386 yen

1,860 yen

1,812 yen

1,394 yen

1,718 yen

NAV per
unit

55,942 yen

56,206 yen

56,482 yen

52,26 yen

57,180 yen

58,436 yen

57,521yen

Forecasted
total gain on
sale

Utilize internal reserves to date
(84 yen per unit) and negative
goodwill from the merger (23yen per unit).

1st
Asset replacement

2nd
Asset replacement

3rd
Asset replacement

4th
Asset replacement

5th
Asset replacement

Gain on sale:
150 million yen

Gain on sale:
1,510 million yen

Gain on sale:
820 million yen

Gain on sale:
190 million yen

Forecasted gain on sale:
1.61 billion yen

Approxi.

4.3
billion yen

Transfer
Urban Park
Yoyogikoen

Acquisition
Urban Park
Gokokuji

(yen）

2,500

Transfer
Oak
Minami-Azabu

Acquisition
Baraki
Logistics

Transfer
Hakata-eki
Higashi 113
Building

Acquisition
Hotel WBF
FukuokaTenjin Minami

Transfer
Urban Park
Shin-Yokohama

Acquisition
GlansitAkihabara

Transfer
Alphabet Seven

Acquisition
Urban Park
Ichigao

Acquisition
Urban Park
GyotokuInternal reserves
37 million yen

Internal reserves
113 million yen

2,211
2,038
1,860

2,000

1,812

1,658
1,455

1,394

1,386

1,500

1,718

1,000
500
3rd FP2017年7月期

2018年1月期
4th FP

5th
2018年7月期
5thFP
FP

6th FP2019年1月期

7th FP2019年7月期

2020年1月期
8th FP

2020年7月期
9th FP

2021年1月期
10th FP

Actual
第3期

Actual
第4期

ActualActual
第5期

Actual
第6期

2021年7月期
11th FP

Actual
第7期

Actual
第8期

Actual
第9期

第10期予想Forecast

第11期予想Forecast

28※SAR has conducted a 2-for-1 split of its investment units with a record date as of July 31, 2020. In order to align the standards after the investment units split, the stated figures have been calculated by dividing by 2.

8．Actual and forecasted distribution(2) <SAR>
Factors for increase/decrease compared with forecast/actual results for the 9th fiscal period ended July 2020
Net profits for the 9th fiscal period (ended July 31, 2020) was JPY 1,857 million (+3.7% compared to forecast at
the beginning of the period), and DPU was 3,436 yen (+3.8% compared to forecast at the beginning of the period).
9th FP (ended Jul.
2020) forecast*
Lease business revenue

9th FP (ended Jul.
2020) ActualComparison with
forecast

Factors for the increase/decrease

3,277

3,314

+37

1,160

1,163

+3

Residence rent

514

512

△2

Logistics rent

846

887

+41

Hotel rent

474

445

△28

281

306

+24

803

741

△62

2,473

2,573

+99

4.0%

436

432

△3

Office rent

Other
Expenses related to rent business(Depreciation is excluded)
NOI
Depreciation(Unit: million yen)

1.1%

<Revenues from leasing business>
0.3% ・Logistics: Increase due to delay of timing of moving out of tenant-0.6% from Nishiura I
・Hotels: Decrease in floating rents
4.9%
Partial exemption of rent
・Otherleasing business related:-6.1%
Settlement money etc. received from cancelled hotel tenant
8.8% Reduction in utility fee revenues
Receipt of renewal fee revenues-7.8%
Receipt of revenues from restoring to original condition

2,037

2,141

+103

Mezzanine

25

25

+0

TK dividend

5

7

+2

Gain on sale of real estate property

642

648

+6

-0.9% <Expenses of leasing business>
5.1% ・Reduction in utility costs
・Reduction in leasing costs
0.9%
43.1% <SG&A expenses>
・Increase due to early expense processing of merger related
1.0% expenses.

SGA

645

690

+45

7.0%

2,064

2,131

+67

3.3%

Non-operating income

-

3

+3

-

Non-operating expenses

273

278

+4

1.6%

1,790

1,857

+66

3.7%

0

0

-

0.0％

1,790

1,857

+66

3.7%

Rent revenues/expenses

Operating income

Ordinary income

taxes
Net income
Cash distribution per unit

3,310 yen

3,436 yen + 126 yen

3.8%

FFO per unit

2,929 yen

3,033 yen + 104 yen

3.6%

△1

-0.8%

Balance of Internal reserves

141

140

（※）Announced in 8th FP closing of accounting report (March 13, 2020)29

8．Actual and forecasted distribution(3) <SSR>
Factors for increase/decrease compared with forecast/actual results for the fiscal period ended July 2020
Net income was 829 million anddistribution per unit was 2,489 yen (+2.9% compared to initial forecast) in the 8th fiscal period ended July
ended Jul. 2020
forecast*
Lease business revenue

ended Jul. 2020
ActualComparison with
forecast(Unit: million yen)

Factors for the increase/decrease

2,737

2,774

+37

Office rent

898

915

+16

Retail rent

1,082

1,070

△11

Residence rent

336

335

△1

Other rent

105

105

-

Other

314

348

+33

970

990

+19

1,766

1,784

+18

310

310

△0

-0.1% <SG&A expenses> △26 million yen

1,455

1,474

+18

1.3% ・Accounting classification of certain expense items have been

448

421

△26

-6.0%

1,007

1,052

+45

4.5% <Non-operating expenses> +24 million yen

Non-operating income

-

2

+2

-

Non-operating expenses

201

225

+24

12.0%

Ordinary income

806

829

+23

2.9%

1

0

△0

-2.6%

805

829

+23

3.0%

Cash distribution per unit

2,418 yen

2,489 yen

+ 71 yen

2.9%

FFO per unit

3,351 yen

3,421 yen

+ 70 yen

2.1%

Expenses related to rent business(Depreciation is excluded)
NOI
Depreciation
Rent revenues/expenses
SGA
Operating income

Taxes

Net income

1.4%<Revenues from leasing business> +37 million yen
Reduction of down time
-1.1% Commercial facilities: Rent reduction and exemption due to
COVID-19-0.4%
Others: Revenues generated from cancellation penalties,
0.0% renewal fees, and restoration to original condition etc.
10.8% <Expenses of leasing business> +19 million yen
・Increase due to change of accounting period from review of
2.0% timing of payment of fixed assets tax and city planning tax.
・Reduction of utility expenses
1.9% Offices:1.0%

moved to non-operating expenses.

・Accounting classification of certain expense items have been
moved from non-operating expenses.

（※）Announced on March 2, 202030

8．Actual and forecasted distribution(4)Forecast of business results for the 10th fiscal period ending January 2021 and the 11th fiscal period ending July 2021
(Unit: million yen)

Lease business revenue

Actual for the
10th FP ending
Jan 2021 (A)Current
forecast for the
10th FP ending
Jan 2021 (B)

5,640

5,618

Increase/decrease (B-A)①

Major factors for theincrease/decrease△22 Increase / decrease factors for 10th
fiscal period (compared to last
△25 forecast)(1) Revenues from leasing+3 business
Decrease due to moving out oftenant from hotel (Hotel WBF Art△6
Stay Namba)
Increase due to delay in timing of+10 moving out of tenant for a logistics
facility (Nishiura I)+0

Actual for the
11th FP ending
Jul 2021
(C)※

5,616

Current
forecast for the
11th FP ending
Jul 2021(D)

5,461 Increase/ decrease factors for11th fiscal period (compared to1,630 last forecast)

Expenses related to rent business(Depreciation is excluded)

1,608

1,583

NOI

4,032

4,035

639

632

Rent revenues/expenses

3,392

3,402

Gain on sale of real estate
properties

969

970

Mezzanine

24

24

SGA

1,160

1,151

Operating income

3,226

3,245

449

468

2,776

2,777

0

8,893

2,776

11,670+8,894

1

0

+0

0

0

2,775

11,670+8,894

2,436

2,257

1,658

1,658

-

1,455

1,455

Depreciation

Non-operating expenses
Ordinary income②(2) Expenses of leasing business+0 (excluding depreciation expense)
Reduction in management costs△8 and insurance premiums etc. forformer Sakura Sogo REIT
+19 properties+18 (8) Extraordinary profits
Gain generated from negative
goodwill due to merger+1Major factors for the increase/decrease

3,831 <Revenues from leasing

business>
646 Reduction due to delay in timingof moving out of tenant from

3,185 Nishiura I

Reduction due to moving out ofhotel tenants,
and reduction in anticipated24
floating rents.
Recent moving out of tenants
515
mainly for offices have been
2,694 reflected.
ー

2,876

436 <Expenses of leasing business>

Costs anticipated for replacement

2,437

2,258 of tenant of Nishiura I

Increase in repair expenses
Extraordinary income
Net income
Taxes
Cash distribution per unit
（considering after split ofinvestment units）
Cash distribution per unit （before
split of investment units）③（※）Announced on March 13, 2020

+8,893ーー
2,258（※）Announced on March 2, 202031

9. Initiatives on ESG

32

9. Initiatives on ESG (1)◼ SAR recognizes its position in society as a listed real estate investment corporation and will implement operation that is considerate towards ESG
as an initiative on sustainability◼ SAR will enhance corporate value in pursuit of long-term sustainability and gain comprehensive competitiveness◼ SAR believes that such efforts are in line with the basic principle of “Unitholders’ interest-first”

Basic principle “Unitholders’ interest-first”

Enhancing the possibility oflong-term sustainability

Enhancing corporate value

E

S

G

Environment

SocialGovernance• Environment-friendly real estate
operation• Establishment of relationshipwith stakeholders• Transparency of management• Alignment of interest withunitholders
33

9. Initiatives on ESG (2)Environmental initiatives

E◼ Acquisition of environmental certification and DBJ Green Building Certification for 4 properties

Property nameIwatsuki Logistics

Property nameBaraki Logistics

Property name

Honmachibashi Tower

Property nameUrban Park Daikanyama

Asset type

Logistics facility

Asset type

Logistics facility

Asset type

OfficeAsset type

Residence

Location

Saitama-shi, Saitama

Location

Ichikawa-shi, Chiba

Location

Osaka-shi, Osaka

Location

Shibuya Ward, Tokyo

Properties with excellent environmental &social awareness

S

Properties with high environmental & social
awareness

Properties with satisfactory environmental &social awareness

Properties with satisfactory environmental &social awarenessSocial initiatives◼ Establishing relationship with various stakeholders
Local community:
Aim to contribute to the local community
through owned properties and tenants

Clients:
Establish mutual trust based on fairtransaction

Lenders:
Strive to share information to establish arelationship of mutual trust

Stakeholders
surrounding
SAR

Local
community

Lenders

Clients

Unitholders

Unitholders:
Aim to maximize unitholder value based on
the “Unitholders’ interest-first” mindset

Employees

Employees:
Support the growth of each employee by accepting various
employees regardless of gender, nationality, ethnic group,
race and generation
Ratio of female employees: 40.0%

34

9. Initiatives on ESG (3)GGovernance◼ Implement decision-making with high transparency by complying
with laws and regulations◼ Maintain a high sense of ethics and execute operations as amanager of investors’ funds<Decision-making process>◼ Aligning the interests of the Sponsor Group with those of theunitholders by holding 14.6% of the investment units of theSponsor Group◼ Members of the Asset Manager also hold investment units
Sponsor Group

Department

Total: 244,265 units held by 4 unitholders
ProposalFounder of Star Asia 2 individuals

Compliance Officer

Number ofinvestment units held insame-boat investment:

244,265 units

Total: 440 units
Review and approval

ReturnHolding ratio:

14.6 %

Investment Committee (including external directors)
Review and resolution

Rejected

Compliance Committee (including external directors)
Review and resolution

Management team of the Asset Manager (as of August 31, 2020)
Rejected

Board of Directors

Holding SAR’s investment units through the cumulative investment systemfor employees
High commitment by management

Rejected
Items that do not need tobe discussed at theCompliance Committee

Items that need to be
discussed at theCompliance Committee

ReviewAnd
approval

SAR’s Board of
Directors Meetings

Employees of Star Asia Investment Management Co., Ltd.
Unapproved

Holding SAR’s investment units through the cumulative investment systemfor employees
35

9. Initiatives on ESG (4)GGovernanceStar Asia, the sponsor of Star Asia Investment Corporation, is a non-listed independent investment management group which invests mainly inJapanese real estate-related assets and whose main goal is supplying investors with excellent returns
Star Asia Investment Corporation and Star Asia shall share the same long-term vision in accordance with the Star Asia Group’s Code of Conduct, shallbe a leading Real estate investment management group in Japan and shall persistently endeavor to continue to be such
The Code of Conduct is as follows:1

Client FirstWe are rewarded only when we
consistently meet and exceed ourinvestor clients’ expectations for the
mandates they have given to us.

5

Collaborative
andCooperative Culture

We succeed only when we work
together by fully utilizing our collective
strengths in a cooperative manner toserve our investor clients. The group’s
performance always exceeds the sum of
our individual performances.

2

Highest EthicalStandards andIntegrity

We always abide by the highest ethicalstandards and integrity. Unethicalactions by an employee could easily
destroy the group’s long-standing
reputation and trust.

6

Adaptability

We stay nimble, proactive and critical,
allowing us to adjust quickly as themarket environment changes in order tocontinue to be a successful leader in themarket where we do business.

3

Creativity

We utilize our experience, persistence,and creativity to identify and monetize
investment opportunities which may not
be immediately apparent to ourcompetitors.

7

Meritocracy

We reward our employees for their
specific personal performance as well as
their contribution to the group and toinvestor client performance.

4

Respect for Others

We treat our investor clients, employees,
trade counterparties, and vendors withthe utmost respect, and always strive to
be trustworthy partner.

8Endless PursuitofExcellence

We will tirelessly pursue excellence not
only for our investor clients but also for
ourselves.

36

10. Appendix

37

About Star Asia Grpup
Taro Masuyama
Co-Founder andManaging Partner

Malcolm F. MacLean IV
Co-Founder andManaging Partner

Star Asia Group is a privately owned, independent investment management group that focuses on investments in Japanese real estate
related opportunities.
• Concepted in 2006, Star Asia Group has invested over JPY749 bn since its foundation in 2007.
• Star Asia Group has 351 officers and employees including over 40 investment and asset management professionals based in Tokyo or
New Jersey, USA.1• We always operate under the Guiding Principles which continuously drive the group to become and remain as one of the leading realestate investment management firms in Japan.
• The group’s strong track record and long-term partnership approach with our investors have been integral in attracting significant
capital from sophisticated global investors, including large U.S. university endowments and foundations, Japanese and European
pension funds, U.S. and Asia based family offices as well as other global real estate investors.
• The group is committed to its disciplined Investment Philosophy and SAR strives for its most important goal of meeting and exceeding
unitholders’ expectations.

Star Asia Group
Listed J-REIT
Asset manager

Private placement
fund management

Star Asia
Management
LimitedStar Asia
Investment
Management Co.,Ltd.

• Registered as an
Investment Advisor
with the US Securities
and Exchange
Commission• Manages multiple
private placement
funds through sistercompanies
Provides know-how
contributing to SAR’sinternal and external growth
as its sponsor

Star Asia
Investment
Corporation• Support of Construction
Management
Department• Provides advice basedon abundant experience
in real estate-related
debt investment• Provides additional
resource as needed

Asset management

Private placement
fund

Unlisted investment company

Star Asia Capital Corp Limited

Star Asia Asset
Advisors Co., Ltd.
• Asset management
and brokerage forprivate placement
funds; real estate
asset and trust
beneficiary interest
brokerage; andproperty management.

Lion Partners GK

Star Asia Japan
Special Situations
LP

Star Asia Sogo
Kaihatsu Co., Ltd.
• Star Asia Group’s realestate development
company• Star Asia Group’s
flagship fund
• Actively investing
based on its
investment capacity• Currently develops
multiple properties
Asset management of
warehousing funds andprovides support fororigination of bridge
funds

Holds SAR’s investment
units (97,000 units;
equivalent to JPY11bn(17.9%)) 2
Silent partnershipinvestment in properties
with preferential negotiationrights owned by SAR

Holds SSR’s investment
units (20,227 units;
equivalent to JPY1.6bn(6.1%))3

Currently develops
properties withpreferential negotiationrights owned by SAR• Hakata office project

Provided over JPY90bn
properties (based on
SAR’s acquisition price)
to SAR since SAR’slisting

Development andoperation of newgeneration student
accommodation

Development andoperation of hospitality
properties; listed

GSA Star Asia KK• A 50/50 joint venturewith GSA Group, a
global pioneer inpurpose built student
accommodation (PBSA),
that develops andoperates new-generation
PBSA• Following the first
property (HAKUSAN
HOUSE), developed thesecond (KAMIKITAHOUSE)

Currently operates
properties withpreferential negotiationrights owned by SAR• HAKUSAN HOUSE• KAMIKITA HOUSE• Urban Park Mitsuike
Koen

Kachikaihatsu Co.,Ltd.
• Listed on TSE 2nd
Section （8010）;
develops andoperates hotels• Star Asia Group
became a sponsor in
Nov. 2018 and holds
75.53% of issued
stock

Under the business
partnership agreementwith Star Asia Group, thecompany provides to
SAR information on saleof properties as adeveloper and operatorof hotels• Urban Park Tokiwadai
Koen• OHA Building

Star Asia Group with expanding business provides strong support to SAR
1. As of March 31, 2020

2. As of July 31, 2020

3. As of July 31, 2020

38

Investment Philosophy of Star Asia GroupThe Group intends to strictly adhere to its investment philosophy, and to meet the expectations of investors andcontinue to exceed such expectations. This is our largest objective
1

Research Focus

We believe that consistent outperformance canonly be achieved when investment opportunities
identified through our rigorous origination process
are validated against the comprehensive
understanding of the ever-changing market
environment. Government policies, macroeconomic
environment, state of capital markets, trends in
demographics,
realestatesupply/demand
dynamics, status of the real estate market cycle,
outlook and appetite by potential tenants, as wellas anticipated behavior of other market participants
are only a few of the critical inputs we analyze. In
order to formulate and continually update ourunderstanding of the current market environment,
we run iterative processes of gathering feedback
from our day-to-day investment and asset
management activities, which are supplemented byvarious third-party research reports and data that isfurther investigated and verified by us to generate
our unbiased view.

4

Specialization

We believe deliberate specialization and a flatorganization allow us to identify, properly structure,and dependably execute attractive, but often
complex,investment
opportunities.
This
specialization leads us to more predictable successand sets us apart from our competitors. Our seniorprofessionals have years of hands-on experience
in real estate deal sourcing, underwriting,structuring, asset management, financing, capital
markets, and securitization. Star Asia’s seniorprofessionals have developed deep-rooted local
relationships over multiple real estate cycles, andhave executed some of the most creative andcomplex investment opportunities in the market.

2

Market Inefficiencies

Unlike highly efficient foreign exchange, interest
rate and public equity markets, the Japanese andother Asian private real estate markets are
inherently inefficient. Although Tokyo is the world’s
largest metropolis in terms of population(approximately 35 million), GDP, and real estate
capital values, in our opinion, it is significantly lessefficient than the U.S. or U.K. markets. The
Japanese real estate market has high barriers-toentry, asymmetric information flows, a lessdeveloped securitization market, and a limited
universe of well-capitalized opportunistic market
participants, which together creates market
inefficiencies. We believe that thorough robust
analysis and deep local relationships combinedwith our significant hands-on experience allow us
to identify and capitalize on these market
inefficiencies that are not obvious to ourcompetitors.

5

Risk Control

Our objective is to achieve consistent and superiorrisk-adjusted returns by only assuming wellcalculated risks. When a potentially attractive
investment opportunity is identified, we examine all
the risks associated with the potential opportunity
through our rigorous review process. We thennegotiate with the counterparties to determine afair risk-sharing arrangement while formulating
structural solutions to eliminate or mitigate otherrisks, where possible. Concurrently, we conduct
quantitative and qualitative analyses to evaluate
the viability of the potential investment opportunity
against our strict underwriting criteria.

3

Maximizing and Unlocking Value

The real estate properties that we evaluate forinvestment are typically not operated to theirmaximum potential at the time of our investment.
Some owners are not professional real estate
investors, failed to invest necessary capital
expenditures, and/or had poorly managed leasing
strategies. Some real estate properties havecertain compliance issues that can be cured withlimited cost and time, or have potential to generatehigher net operating income if repositioned or
repurposed properly. We utilize our own
experience along with technical advice from thirdparty professionals, as necessary, to formulate andexecute the optimal asset management, capital
expenditures, renovation, and repositioning plans.
Implementation of these plans will maximize andunlock the property’s intrinsic value in the mostefficient manner from a cost and time perspective.

6

Dependability, Transparency andDecisive Action

Our trade counterparties know that they candepend on us when they need to sell their realestate related assets quickly, discreetly and/or
through a complex structure that others may not beable to handle or understand. We are always
candid and transparent by clearly explaining ourrequirements up front including expected deal
economics, our strict due diligence process, andthen work tirelessly and creatively to meet thecounterparty’s specific objectives and timing. Ourflat organization and highly efficient, decisionmaking process allows us to be very flexible,
tactical and decisive. This philosophy andexecution style are valued by our trade
counterparties who repeatedly bring attractive
investment opportunities that reward our clientswith outsized returns.

39

Status of Unitholders at the End of 8th Fiscal Period ended January
2020
List of major unitholders (Top 10)

Number of investment units by attribute: Total 540,824 units
End of 9th FP

End of 9th FP

Unitholders' register

Category
No. ofinvestment units

Ratio

No. ofinvestment units

Ratio

No. ofinvestment units

151,55428.0%

166,124

30.7%

166,124

37.4%

Financial
institution

157,67129.2%

142,98526.4%

142,98532.2%

Domestic
corporation

14,9372.8%

15,9012.9%

15,901

3.6%

Foreign

205,57638.0%

206,39338.2%

109,393

24.6%

Securities
company

11,086

2.0%

9,421

1.7%

9,421

2.1%

Total

540,824100.0%

540,824100.0%

443,824100.0%

Number of unitholders by attribute: Total 18,187 units
End of 9th FP
Unitholders' register

Category
No. ofpersons/entitie

Ratio

No. ofpersons/entitie

Ratio

Number ofinvestment units

Holding
ratio

Ratio

Individual

End of 9th FP

Unitholder nameSponsor Group is excluded

1

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

43,640

8.1%

2

Custody Bank of Japan, Ltd.
(Trust Account)40,279

7.4%

3

NORTHERN TRUST CO. (AVFC) RE UKDU
UCITS CLIENTS NON LENDING 10 PCT TREATYACCOUNT

30,116

5.6%

4

Star Asia Capital Ⅰ LLC

24,195

4.5%

4Star Asia Capital Ⅱ LLC

24,195

4.5%

4Star Asia Capital Ⅲ LLC

24,195

4.5%

4Star Asia Capital Ⅳ LLC

24,195

4.5%

8

GOLDMAN, SACHS & CO. REG

17,395

3.2%

9The Nomura Trust and Banking Co., Ltd.
(Trust Account)

15,0582.8%

10

Custody Bank of Japan, Ltd.
(Security Trust Account)

14,426

2.7%

Sponsor Group is excluded
No. ofpersons/entitie

Ratio

Individual

16,16097.0%

17,682

97.2%

17,682

97.3%

Financial
institution

39

0.2%

36

0.2%

36

0.2%

Domestic
corporation

261

1.6%

277

1.5%

277

1.5%

Foreign

175

1.1%

172

0.9%

166

0.9%

Securities
company

21

0.1%

20

0.1%

20

0.1%

Total

16,656100.0%

18,187100.0%

18,181100.0%

合計257,694

47.6%
40

Status of Assumed Unitholders after the Merger
Major unitholders

Major unitholders

Star Asia Taking into accountinvestment units split

Former Sakura Sogo REIT Taking into accountinvestment unit allotment (1:1.78)

Unitholder name

Numberofinvestme
nt units

Unitholder name

Major unitholders after merger(assumed)

Numberofinvestme
nt units

Unitholder name

Numberofinvestme
nt units

Holdingratio

1

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

87,2801

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

62,043

1

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

149,323

8.9％

2

Custody Bank of Japan, Ltd.
(Trust Account)

80,5582

Lion Partners GK

41,933

2

Custody Bank of Japan, Ltd.
(Trust Account)

118,324

7.1％

3

NORTHERN TRUST CO. (AVFC) RE
UKDU UCITS CLIENTS NON LENDING
10 PCT TREATY ACCOUNT

60,232

3

Custody Bank of Japan, Ltd.
(Trust Account)

37,766

3

NORTHERN TRUST CO. (AVFC) RE
UKDU UCITS CLIENTS NONLENDING 10 PCT TREATY ACCOUNT

78,5094.7％

4Star Asia Capital Ⅰ LLC

48,390

4

GOLDMAN SACHSINTERNATIONAL

28,752

4

Star Asia Capital Ⅰ LLC

48,3902.9％

4Star Asia Capital Ⅱ LLC

48,3905Morgan Stanley MUFG Securities
Co., Ltd.

22,894

4

Star Asia Capital Ⅱ LLC

48,3902.9％

4Star Asia Capital Ⅲ LLC

48,3906

NORTHERN TRUST CO. (AVFC) RE
UKDU UCITS CLIENTS NON LENDING
10 PCT TREATY ACCOUNT

18,277

4

Star Asia Capital Ⅲ LLC

48,3902.9％

4Star Asia Capital Ⅳ LLC

48,3907

Custody Bank of Japan, Ltd.
(Security Trust Account)

17,572

4

Star Asia Capital Ⅳ LLC

48,3902.9％

8

GOLDMAN, SACHS & CO. REG

34,7908NIPPON KANZAI Co., Ltd.

15,486

8

Lion Partners GK

41,933

2.5％

9The Nomura Trust and Banking Co.,
Ltd.
(Trust Account)

30,116

8

GALAXY JREIT PTY LIMITED

15,486

9

GOLDMAN, SACHS & CO. REG

34,790

2.1％

10

Custody Bank of Japan, Ltd.
(Security Trust Account)

28,85210 Mizuho Securities Co., Ltd.

15,065

10The Nomura Trust and Banking
Co., Ltd.
(Trust Account)

30,116

1.8％

Total

515,388

Total

275,274

Total

646,555

38.6％

41

Change in distribution since listing
Change in business results since listing(Unit: million yen)

4th FP(ended Jan. 2018)
actual

5th FP(ended Jul. 2018)
actual

6th FP(ended Jan. 2019)
actual

7th FP(ended Jul. 2019)
actual

8th FP(ended Jan. 2020)
actual

9th FP(ended Jul. 2020)
forecast*

9th FP(ended Jul. 2020)
actualComparison with
forecast

2,408

2,791

3,224

3,344

3,200

3,277

3,314

+37

Office rent

795

862

1,104

1,134

1,145

1,160

1,163

+3

Residence rent

410

500

458

438

439

514

512

△2

Logistics rent

696

906

912

910

817

846

887

+41

Hotel rent

282

287

447

500

477

474

445

△28

Other

223

235

302

349

320

281

306

+24

536

607

678

798

803

741

△62

Lease business revenue

Expenses related to rent
business(Depreciation is excluded)
NOI
Depreciation
Rent revenues/expenses
Mezzanine
TK distribution

769
1,871

2,184

2,545

2,535

2,431

2,473

2,573

+99

305

355

409

415

420

436

432

△3

1,566

1,828

2,135

2,119

2,011

2,037

2,141

+103

14

18

22

20

21

25

25

+0

6

5

7

+2

642

648

+6

-

-

-

7

Gain on sale of real estate
property

771

-

598

422

SGA

300

270

349

344

316

645

690

+45

2,051

1,576

2,406

2,225

1,721

2,064

2,131

+67

Non-operating income

0

0

0

0

1

-

3

+3

Non-operating expenses

176

270

333

261

227

273

278

+4

Ordinary income

1,876

1,305

2,073

1,965

1,494

1,790

1,857

+66

Net income

1,802

1,305

2,049

1,964

1,493

1,790

1,857

+66

Cash distribution per unit

4,077円

2,773円3,720円

3,625円

2,788円3,310円

3,436円+ 126円FFO per unit

3,224円

3,529円

3,440円

3,620円

3,539円

2,929円

3,033円+ 104円

113

113

151

155

141

141

140

△1

Operating income

Balance of Internal reserves-* March 13, 2020 Announced in 8th FP closing of accounting report42Balance Sheets for the 9th Fiscal Period ended July 31, 2020
(Unit: thousand yen)
8th fiscal period(As of January 31,
2020)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust,net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust,net
Land in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses
Lease and guarantee deposits
Other
Total investments and other assets
Total non-current assets
Total assets

8th fiscal period(As of January 31,
2020)

9th fiscal period(As of July 31, 2020)

1,622,851
3,848,378
45,608112,436
8,689
5,637,964

2,303,632
3,915,644
49,312
119,529
10,3896,398,507

33,247,569(2,521,046)
30,726,523
15,784(2,431)
13,352
46,680(9,570)37,11034,100,500△2,933,446
31,167,053
18,395△2,99015,40555,823△12,054

36,546(11,336)
25,21046,277△13,817

43,76832,46068,602,052
99,404,248

70,619,311
101,877,998

3,459,138
3,459,138

3,459,138
3,459,138

711,912300,000
121,497
10,862
3,625
1,147,898
104,011,285
109,649,249

853,350
300,000
135,723
10,782
1,299,856
106,636,993
113,035,501

Liabilities
Current liabilities
Operating accounts payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in
trust
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

9th fiscal period(As of July 31, 2020)

338,896
11,300,000
269,588
11,903605
35,586531,192
14,29912,502,070

337,786
14,040,000
417,355
12,748605
48,276698,166
17,332
15,572,270

40,280,000
6,718
2,459,766

40,280,000
6,595

101,271
42,847,755
55,349,826

132,189
42,848,645
58,420,916

52,745,966

52,745,966

1,649,263

2,429,860

1,998,562

1,649,263
54,395,229

1,998,562
54,744,528(95,806)(95,806)
54,299,423
109,649,249△129,943△129,943
54,614,584
113,035,501

43

Statement of Income for the 9th Fiscal Period(From February 1, 2020 to July 31, 2020)
8th fiscal period(As of January 31, 2020)
Operating revenue
Lease business revenue
Other lease business revenue
Gain on sales of real estate property
Other revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody and administrative service fees
Directors’ compensations
Merger expenses
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of unpaid distribution
Interest on refund
Gain on donation of non-current assets
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing related expenses
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes - current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

9th fiscal period(As of July 31, 2020)

2,988,424
212,244
27,1603,227,829

3,122,781
192,129
648,585
32,582
3,996,079

1,189,614
226,759
23,7572,400
63,8881,506,419
1,721,410

1,173,882
252,533
28,0532,400
303,222
104,149
1,864,242
2,131,837

27
997
1
1,026

25
1,131
1
2,816
3,975

165,266
62,670227,937
1,494,499
1,494,499
605
605
1,493,894
155,368
1,649,263

172,539
105,551
278,091
1,857,721
1,857,721
605
605
1,857,116
141,446
1,998,562-(Unit: thousand yen)

44

Balance Sheets for the 8th Fiscal Period ended July 31, 2020
Fiscal period ended
December 31, 2019
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Deposits
Other
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment intrust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures intrust, net
Land in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Deferred tax assets
Long-term prepaid expenses
Long-term deposits
Other
Total investments and other assets
Total non-current assets
Total assets

Fiscal period ended
July 31, 2020

518,328
4,356,576
66,422
92,744
16,350394
5,050,817

1,552,012
3,631,229
60,05972,4726,209
35,321,988

15,132,852△1,464,891
13,667,960
450,855△118,659
332,195
40,961△6,74015,290,621-1,748,467
13,542,153
450,855-138,412
312,442
47,583-9,26934,22050,336△13,50936,82642,953,181
57,024,385

38,31451,406-18,042
33,36342,953,181

670,865
9,611
680,477

670,8656,359
677,224

17
54,491
269,444
10,000333,954
57,890,633
63,212,621

17
54,491
269,444
10,000333,954
57,890,633
63,212,621(Unit: thousand yen)
Fiscal period ended
December 31, 2019
Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits in
trust
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings(undisposed loss)
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

Fiscal period ended
July 31, 2020

250,346
4,900,000
6,000,000
155,659971
44,176
361,908
57,288
11,770,351

291,1094,900,000
6,000,000
162,482967
54,533374,718
44,048
11,827,860

18,300,000

18,300,000

3,082,276
21,382,276
33,152,627

3,001,013
21,301,013
33,128,874

29,254,680

29,254,680

704,679
704,679
29,959,359
29,959,359
63,111,987

829,067
829,067
30,083,747
30,083,747
63,212,621

45

Statement of Income for the 8th Fiscal Period(From February 1, 2020 to July 31, 2020)(Unit: thousand yen)
Fiscal period ended
July 31, 2020
(From January 1, 2020
to July 31, 2020)

Fiscal period ended
December 31, 2019
Operating revenue
Lease business revenue
Other lease business revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody service fees
General administrative service fees
Directors’ compensation
Merger-related expenses
Consumption tax non-deductible
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distributions payable
Other
Total non-operating income
Non-operating expenses
Interest expenses
Borrowing expenses
Total non-operating expenses
Ordinary income
Extraordinary loss.
Unit holder’s meeting and Merger - related expenses

2,054,703
337,004
2,391,708

2,426,601
348,072
2,774,674

1,088,711
174,610
3,159
21,1811,300,497
164,786
3,678
26,242

4,040
8,173
45,243

3,570
10,278
162,174
50,772

1,345,120

1,722,001

1,046,588

1,052,672

23
13

23
2,582
0

37

2,606

121,295
52,870136,707174,166
872,459

88,578225,286
829,992

166,9610Total extraordinary loss
Income before income taxes
Income taxes-current
Income taxes-deferred

166,961
705,498974
1829,992973
0Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

975
704,522156
704,679974
829,01849
829,067

046

Portfolio List (as of August 1, 2020)

Property nameAcquisition
price

Location
Minato Ward, Tokyo

Honmachibashi Tower

Osaka City, Osaka

Nishi-Shinjuku Matsuya Building

Shibuya Ward, Tokyo

Shibuya MK Building

Shibuya Ward, Tokyo

Asahi Building

Yokohama City, Kanagawa

Hakata-eki East Place

Fukuoka City, Fukuoka

OfficeNihonbashi Hamacho Park Building Chuo Ward, Tokyo
Amusement Media Gakuin
Shibuya Ward, Tokyo
HonkanHigashi Kobe Center Building
Kobe City, Hyogo
Amusement Media Gakuin
Shibuya Ward, Tokyo
ShinkanSeishin Building
Shinjuku Ward, Tokyo
Chiyoda Ward, Tokyo

Tsukasamachi Building

Chiyoda Ward, Tokyo

Takadanobaba AccessShinjyuku Ward, Tokyo

Azabu Amerex Building

Minato Ward, Tokyo

Hiei-Kudan Building

Chiyoda Ward, Tokyo

Shin-Yokohama Nara Building

Yokohama City, Kanagawa

Shin-Yokohama Nara Building

Chiyoda Ward, Tokyo

Subtotal

Retail

La Park Kishiwada

Kishiwada City, Osaka

Suroy Mall Chikushino

Chikushino City, Fukuoka

Seiyu Minakuchi

Koka City, Shiga

Suroy Mall Nagamine

Kumamoto City, Kumamoto
Subtotal

166,494

1.8
3.6
1.1
1.2
3.8
1.4
0.9

2,580

2,690

1.5

4.0

7,440

7,530

4.5

5.8

1,020

1,160

0.6

4.0

11,200
5,350
4,590
3,990
2,780
2,400
2,300
1,510
68,059
5,450
6,550
3,320
3,450
18,720

11,200
5,350
4,590
3,990
2,780
2,400
2,300
1,510
73,320
5,450
6,550
3,320
3,450
18,720

6.7
3.2
2.8
2.4
1.7
1.4
1.4
0.9
40.9
3.2
3.9
2.0
2.1
11.2

3.7
3.9
3.9
4.1
3.8
4.0
4.8
4.0
7.3
5.8
7.4
5.8

Appraisal NOI
yield（mln.）（%）

175,795

Location

4.9

Acquisition
priceAppraisal
Investment Appraisal
value atratio
NOI yield
end of(%)(%)
9th FP

2,480
8,310
1,650
1,510
1,190
1,620
1,180
1,850
1,500

1.2
3.8
0.9
0.9
0.7
0.9
0.7
1.1
0.9

4.4
4.8
5.4
4.7
5.0
5.7
4.7
4.8
4.7

Urban Park Ichigao

Yokohama City, Kanagawa

Urban Park Gyotoku

Ichikawa City, Chiba

2,045
6,315
1,490
1,460
1,186
1,550
1,167
1,810
1,430

Shiroi Logiman

Shiroi City, Chiba

2,470

2,470

1.5

5.7

Urban Park Sekime

Osaka City, Osaka

Urban Park Imazato

Osaka City, Osaka

2,150
993
1,740
28,643
7,310
4,170
8,650
4,870
1,350
3,020
850
2,860
1,710
702
35,492
2,270
1,430
3,660
3,220
1,940
2,450

1.3
0.6
1.0
15.5
4.1
2.1
4.7
2.8
0.8
1.8
0.5
1.7
1.0
0.4
20.0
1.2
1.1
2.3
2.0
1.2
1.5

5.2
5.3
3.8

Best Western Yokohama
Yokohama City, Kanagawa
Hotel WBF Fukuoka Tenjin Minami Fukuoka City, Fukuoka
GLANSIT Akihabara
Chiyoda Ward, Tokyo

2,150
993
1,740
25,806
6,942
3,560
7,875
4,700
1,300
3,000
821
2,755
1,710
702
33,365
2,069
1,750
3,827
3,248
1,970
2,500

Best Western Tokyo Nishikasai
GrandeEdogawa Ward, Tokyo

3,180

3,130

1.9

4.0

Hotel WBF Art Stay Namba

Osaka City, Osaka

2,000
20,544

1,520
19,620

1.2
12.3

3.8
4.9

Urban Park Azabujuban

Minato Ward, Tokyo

Urban Park Daikanyama

Shibuya Ward, Tokyo

Urban Park Namba

Osaka City, Osaka

Urban Park Gokokuji

Toshima Ward, Tokyo

Urban Park Kashiwa

Kashiwa City. Chiba

Urban Park Ryokuchi-koen

Suita City, Osaka

Urban Park Koenji

Suginami Ward, Tokyo

Shibuya Ward, Tokyo

Urban Park Yoyogi
Subtotal
Iwatsuki Logistics

Saitama City, Saitama

Yokohama Logistics

Yokohama City, Kanagawa

Funabashi Logistics

Funabashi City, Chiba

Baraki Logistics

Ichikawa City, Chiba

Tokoyozawa Logistics

Tokorozawa City, Saitama

Funabashi Nishiura Logistics I

Funabashi City, Chiba

Funabashi Nishiura Logistics II

Funabashi City, Chiba

Matsubushi Logistics

Kita-Katsushika-gun, Saitama

Funabashi Hi-Tech Park Ⅰ

Funabashi City, Chiba

Funabashi Hi-Tech Park Ⅱ

Funabashi City, Chiba
Subtotal

Appraisal value at
end of 9th FP

The figure is after the asset replacement., and based on appraisal value as of the end of July 2020,
The figure for SSR is based on acquisition price (receipt price)

4.7
5.1
6.4
5.9
5.0
5.2
4.7

Hotel

Total

Acquisition
Price （mln.）

3,070
6,960
2,510
3,260
7,840
2,630
1,550

LogisticsNK Building

2,973
6,065
1,763
2,042
6,320
2,286
1,450

Property nameResidence

Minami-Azabu Shibuya Building

Appraisal
Investment Appraisal
value atratio
NOI yield
end of(%)(%)
9th FP

R&B Hotel Umeda East

Osaka City, Osaka

Smile Hotel Namba

Osaka City, Osaka

Best Western Tokyo Nishi-kasai

Edogawa Ward, Tokyo

Subtotal

4.8
5.7
5.3
4.3
5.7
5.1
7.0
5.5
6.5
6.8
5.5
4.3
4.3
4.5
4.4
3.9

47

Other assets under management (as of August 1, 2020)<Mezzanine loan debt investment>
NumberType

Underlying asset, etc.

Name of the security（asset overview）

Period-end
book value(million yen)

Asset nameLocationInterest rate (Note25)

MEZ-01

Mezzanine(Subordinated bonds)

Star Asia Mezzanine Loan Debt
Investment Series 1

400

Relief Premium Haneda

OtaWard,Tokyo

Base rate +5.0%

MEZ-03Mezzanine(Subordinated Beneficiary Interest)

Star Asia Mezzanine Loan Debt
Investment Series 3

124

The Royal Garden Residence
Shirokanedai

Minato Ward,Tokyo

Base rate +5.0%

Mezzanine(Subordinated loan claims)

Star Asia Mezzanine Loan Debt
Investment Series 4

DS Kaigan Building

MEZ-04300(Previously) Premier Kaigan
Building

Minato Ward,Tokyo

Base rate +5.0%

MEZ-05

Mezzanine(Subordinated Beneficiary Interest)

Star Asia Mezzanine Loan Debt
Investment Series 5

150

Sanmaison Ohorikoenkita

Fukuoka city,
Fukuoka

Base rate +5.0%

Total

974

<Silent partnership equity interest>
Number

TKI-01

TKI-02

Investments securities

GK SAPR8 subordinated silent partnership equity interest

GK SAPR7 silent partnership equity interest

Total

Period-end bookvalue
(million yen)

Underlying asset, etc.
Property nameLocation

Urban Park Mitsuike Koen

Yokohama city, Kanagawa

Urban Park Tokiwadai Koen

Yokohama city, Kanagawa

OHA Building

Tachikawa city, Tokyo

106

72

179

48

Other Managed Assets
Status of silent partnership (TK) investments and mezzanine loan debt investments◼ To date, 2 silent partnership (TK) investments and 5 mezzanine loan debt investments (of which 1 has been redeemed) have been executed.
◼ Also going forward, we will continue to consider measures which will contribute to the maximization of unitholders’ interests, such as acquiring priority
negotiation rights and contributing to DPU.

Silent partnership equity interest
GK SAPR8 subordinated silent partnership equity interest

Mezzanine loan debt investment
Star Asia Mezzanine Loan Debt
Investment Series 1

Star Asia Mezzanine Loan Debt
Investment Series 3
Type

SubordinatedBeneficiary Interest

Acquisition price

124 million yen

Acquisiti
on price

100 million yen

TypeSubordinated bonds

Asset
name

Urban Park Mitsuike Koen

Acquisition price

400 million yen

Asset name

Relief Premium
HanedaAsset nameLocation

Ohta Ward, Tokyo

Location

Minato Ward, Tokyo

Interest rate

Base rate +5.0%

Interest rate

Base rate +5.0%

Location

Yokohama city, Kanagawa

Asset
name

Urban Park Tokiwadai Koen

Location

Yokohama city, Kanagawa

GK SAPR7 silent partnership equity interest
Acquisiti
on price

100 million yen

Asset
name

OHA Building

Location

Tachikawa city, Tokyo

Star Asia Investment Corporation
Contribution to DPU for the fiscal period ended
July 31, 2020.

The Royal Garden
Residence
ShirokanedaiStar Asia Mezzanine Loan Debt
Investment Series 5Star Asia Mezzanine Loan Debt
Investment Series 4
Type

Subordinated loan
claimsType

SubordinatedBeneficiary Interest

Acquisition price

300 million yen

Acquisition price

150 million yen

Asset nameDS Kaigan Building(Previously) Premier
Kaigan Building

Asset name

Sanmaison
Ohorikoenkita

Location

Minato Ward, Tokyo

Location

Fukuoka city, Fukuoka

Interest rate

Base rate +5.0%

Interest rate

Base rate +5.0%

51.7 yen／unit49Portfolio List
Asset type

OfficeOfficeOfficeOfficeOfficeOfficeProperty nameMinami-Azabu Shibuya
Building

Honmachibashi Tower

Nishi-Shinjuku Matsuya
Building

Shibuya MK Building

Asahi Building

Hakata-eki
East Place

Acquisition price

2,973 million yen

6,065 million yen

1,763 million yen

2,042 million yen

6,320 million yen

2,286 million yen

Appraisal value

3,070 million yen

6,960 million yen

2,510 million yen

3,260 million yen

7,840 million yen

2,630 million yen

Structure/Floors

SRC B1/7F

S/SRC B1/21F

SRC B1/9F

S 6F

S/SRCB2/12F

SRC 9F

Location

Minato Ward, Tokyo

Osaka City, Osaka

Shibuya Ward, Tokyo

Shibuya Ward, Tokyo

Yokohama City, Kanagawa

Fukuoka City, Fukuoka

1,096.86 m2

1,129.86 m2

Lot area

766.11 m²

1,274.37 m²

589.94 m²(surface right)

620.42 m²(of which 2.62 m²
leasehold)Total floor areas

4,137.21 m²

15,407.83 m²

5,117.80 m²

1,982.86 m²

12,353.83 m2

6,243.13 m2

Construction completion

June 15, 1993

February 8, 2010

May 28, 1987

July 31, 1993

November 25, 1994

February 24, 1986

Property Features⚫ Located in Minami-Azabu, a well- ⚫ Located in the Yodoyabashi /⚫ Located in the Nishi-Shinjuku⚫ Located in the Shibuya area, one ⚫ Located in the Yokohama Station
known, high-class residential area
Hommachi area, one of Osaka’s
area, which has a highof Japan’s leading commercial
West Exit area where there is athat is also home to embassies ofleading office districts.
concentration of office buildings.
districts, the property has a strong
high concentration of commercial
various countries.
appealfor
fashionand
IT-related
and office buildings.
⚫ Situated near facilities such as the ⚫ In addition to access by train, thecompanies.
⚫ In addition to access by train, theOsaka Chamber of Commercearea is well served by bus routes⚫ The floors can be subdivided intoarea is well served by bus routes
and Industry, MyDome Osaka,and provides convenient access⚫ Following the completion of thesmaller spaces, enabling theand provides convenient accessand City Plaza Osaka, the area
to various locations within central
Shibuya Station areabuilding to flexibly accommodate
to various locations within central
has a high concentration of office
Tokyo.
redevelopment project, further
demand from branch offices ofTokyo.
buildings.
development is expected goingcompanies in various fields.
⚫ The property is expected to attract
forward.
⚫ The area is highly appealing to⚫ The residences on the upper floors ofstrong demand from affiliated⚫ With the completion of thecompanies in fashion, mass
the building offer excellent views
companies of tenants of largeYokohama Station area
media, and IT-related fields.
overlooking landmarks such as Osaka
scale buildings located in Shinjuku
redevelopment project and theCastle.
sub-center or its surrounding area.
Excite Yokohama 22 project,further development is expectedgoing forward.

⚫ Located in the Hakata Station
East area, which has a higher
concentration of offices after thecompletion of redevelopment
projects in front of the station.
⚫ Even more vitalization is expected
for the Fukuoka (Hakata) areawith the start of “Tenjin Big Bang
Project” and the extension ofsome Fukuoka City Subway lines.

50

Portfolio List
Asset type
Property name

OfficeOfficeNihonbashi Hamacho Park Amusement Media Gakuin
Building
HonkanOfficeOfficeOfficeOfficeHigashi Kobe Center
Building

Amusement Media Gakuin
ShinkanSeishin Building

NK Building

Acquisition price

1,450 million yen

2,580 million yen

7,440 million yen

1,020 million yen

11,200 million yen

5,350 million yen

Appraisal value

1,550 million yen

2,690 million yen

7,530 million yen

1,160 million yen

11,200 million yen

5,350million yen

Structure/Floors

SRC 11FSRC S 8F/B1F

SRC 14F

RC 7F

SRC 10F/1B

SRC 10F/1B

Location

Chuo Ward, Tokyo

Shibuya Ward, Tokyo

Kobe City, Hyogo

Shibuya Ward, Tokyo

Shinjyuku Ward, Tokyo

Chiyoda Ward, Tokyo

Lot area

319.04 m2

433.21 m²

8,488.11 m²

203.43 m²

886.93㎡

590.72㎡

Total floor areas

2,383.76 m2

1,892.18 m²

25,740.46 m²

913.71 m²

7,624.66㎡

4,994.70㎡

Construction completion

July 13, 1992

November 2, 1994

January 6, 1992

January 25, 1999

March 31, 1989

October 28, 1991

Property Features⚫ Located in Nihonbashi Hamacho ⚫ Stable revenue is expected since ⚫ Provides convenient access to⚫ Stable revenue is expected since ● Located nearby "Shinjuku● The property is conveniently
a vocational school has rented theoffice and commercial areas sincearea, allowing easy access toit has the same tenant as that ofsanchome” Station accessible to 3
located with good traffic access,entire building for many years
the building is centrally locatedmajor business areas in Central
Amusement Media Gakuin
subway lines, it is an area withsituated at an approximate 1-minutesince the completion.
between Osaka and Kobe, with an
Tokyo and use of various railways.
Honkan.
excellent commute access.
walk from the nearest "Iwamotocho"⚫ The building is appealing to
11-minute ride to Sannomiya● Being located along the busy
Station, and within walking distance⚫ A number of major companies⚫ The building is appealing tocompanies as the property is
Station and 17-minute ride to
main road of Shinjuku-dori, itfrom the business districts ofhave their head offices in thiscompanies as the property is
locatedinanoffice
area
with
Osaka
StationfromSettsubenefits from excellent visibility. The "Kanda" Station and “Akihabara”
area, as it is a very attractive area
located in an office area withmany
foreign-affiliatedcompanies
Motoyama,
thecloseststationtopropertyislocatedinacommercial
Station.
for companies in various fields
many foreign-affiliated companies,
and IT-related firms as well as
the property.
district where there are many mid● The property has excellent
and of various sizes.
IT-related firms as well ascompanies in the creative sector ⚫ There is parking space for 180
sized office buildings and stores.
visibility, being located along
companies in the creative sector⚫ Further development of the area issuch as advertising and content
cars on the premises and for 112● The property has a standard floor Yasukuni-Dori, and in a commercial
such as advertising and content
expected considering that it notcreation firms.
cars off the premises, which isarea of rental space of 180 tsubo,
district where there are many midcreation firms.
only has characteristics of an⚫ Further development of the area isvery appealing to a wide range of
office area, but also has⚫ Further development of the area is which is competitive from a leasing sized office buildings, and well as
expected considering that it is notretail tenants, particularly storesperspective.
stores and restaurants etc.
characteristics of residential andexpected considering that it is not
only an office area, but also has
seeking to attract customers.
● The property has a standard floor
tourism areas.
only an office area, but also haselements of residential andarea of approximately 110 tsubo
elements of residential andtourism areas.
which is competitive from a leasing
tourism areas.
perspective.

51

Portfolio List
Asset type

OfficeOfficeOfficeOfficeOfficeOfficeProperty name

Tsukasamachi Building

Takadanobaba Access

Azabu Amerex Building

Hiei Kudan Building

Shin Yokohama Nara Bldg

The Portal Akihabara

Acquisition price

4,590 million yen

3,990 million yen

2,780 million yen

2,400 million yen

2,300 million yen

1,510 million yen

Appraisal value

4,590 million yen

3,990 million yen

2,780 million yen

2,400 million yen

2,300 million yen

1,510 million yen

Structure/Floors

SRC 8F/1B

S RC 14F/1B

SRC 8F/1B

SRC S 11F/1B

S RC 1F/1B

SRC S 8F

Location

Chiyoda Ward, Tokyo

Shinjyuku Ward, Tokyo

Minato Ward, Tokyo

Chiyoda Ward, Tokyo

Yokohama City, Kanagawa

Chiyoda Ward, Tokyo

478.27㎡
Lot area

709.52㎡

930.70㎡

601.71㎡（Number derived by multiplying the ratio ofholdings）
3,205.95㎡

700.59㎡

184.76㎡

Total floor areas

4,629.27㎡

5,757.14㎡

2,909.80㎡（Number derived by multiplying theratio of holdings）

5,356.99㎡

1,010.67㎡

Construction completion

January 20, 1988

January 14, 1994

June 30, 1988

September 17, 1991

March 17, 1992

May 31, 2002

● Conveniently located at an
approximate 3-minute walk from thenearest stations of "Awajicho" Stationand "Ogawa-machi" Station, andwithin walking distance from thebusiness district around “Kanda”
station etc.
● Located in a commercial district
where there are many mid- to smallsized offices and stores.
● The property has a standard floorarea of approximately 140 tsubo
which is competitive from a leasing
perspective.

● The property is conveniently
located with good traffic access,located nearby "Nishi-waseda"
Station, and also is within walking
distance from "Takadanobaba"
Station.
● The property has excellent
visibility, being located along Meijidori, and is in a commercial district
with a mixture of offices, apartmentbuildings, and vocational schools.
● Each floor has an area ranging
between approximately 60-140
tsubo, and which is competitivefrom a leasing perspective.

●Conveniently located in acommercial district within a 10minute walk from “Kamiyacho”,“Roppongi-1 chome”, and“Azabujuban” stations.
●Faces Gaien-higashidori, and has
favorable visibility.
● Improved convenience isanticipated due to the “Toranomon
Azabudai District Type I Urban
Redevelopment Project” planned in
the neighboring area.
●Competitive in terms of each floorarea of approximately 70-90 tsubo
and leasing capacity

Property Features●Located within walking distance●Located in the Shin-Yokohama
from “Ichigaya Station” accessing 4 busines district where offices aretrain lines and has traffic
concentrated, within walking
convenience.
distance from Shin-Yokohama●Has favorably visibility as it isstation, and has traffic convenience.
located across from Yasukuni Shrine ●Located in a commercial area
and along Yasukuni-dori, and in an where mid-to-high rise officearea where there are many officebuildings and stores, hotels etc. arebuildings as well as a combination of concentrated.
schools and stores etc.
●Competitive in terms of leasing●Competitive in terms of leasing
with a standard floor area ofwith a standard floor area ofapproximately 120 tsubo.
approximately 90 tsubo.

● The property is conveniently
located within walking distance from
“Bakurocho”, “Asakusabashi”, and“Akihabara” stations.
● Renovation works on all of thefloors were completed in 2019(external walls, rooftop waterproof
works, air-conditioning facilities, etc.)● The property is a small-sized
office with standard floor space ofapproximately 30-40 tsubo, suitable
for start-up companies etc.

52

Portfolio List
Asset type

RetailRetailRetailRetailResidence

Residence

Property name

LaPark Kishiwada

Suroy Mall Chikushino

Seiyu Minakuchi

Suroy Mall Nagamine

Urban Park Azabujuban

Urban Park Daikanyama

Acquisition price5,400 million yen

6,550 million yen

3,320 million yen

3,450 million yen

2,045 million yen

6,315 million yen

Appraisal value

5,400 million yen

6,550 million yen

3,320 million yen

3,450 million yen

2,480 million yen

8,310 million yen

Structure/Floors

RC S 3F

S 2F

S 4F

S 1F 2F

SRC with slate roofing
B1/12F

RC, B1/3F
RC, B1/9F

Location

Kishiwada city, Osaka

Chikushino city, Fukuoka

Koka city, Shiga

Kumamoto city, Kumamoto

Minato Ward, Tokyo

Shibuya Ward, Tokyo

28,546.00㎡

417.67 m2

2,469.06 m2

96,101.96㎡（Also has leased

19,917.56㎡(of which leased
land is 16,444.53㎡)

Lot area

39,799.74㎡

Total floor areas

65,663.02㎡

31,086.23㎡

31,829.71㎡

13,130.23㎡

2,564.94 m2

8,261.29 m2(for 2 buildings combined)

Construction completion

August 30, 1994

June 22, 2007

May 31, 1999

August 23, 2007

November 29, 1999

1: November 15, 1982
2: May 30, 2006

Property Features● The property is conveniently
located within an approximate 3minute walk from "Haruki" station on
the Nankai Electric Railway MainLine.
● The property is a large-scalecommercial facility consisting ofapproximately 80 specialty stores(such as household necessities
stores, restaurants, entertainment
facilities, and sports club etc.) andbeing near the station it can securedemand from a wide range of age
groups.

land of 25,321.5㎡ for use as aparking lot.)

Home to electronic stores, home
⚫ Located in Azabu-Juban, an area
●Located within walking distance●Located in an area within
improvement and furniture storesfrom the nearest station, and in awith an elegant image that also
Kumamoto city where there is awith a total floor area of over 1,000
commercial area which has largeboasts popular appeal.
mixture of stores, apartments,
tsubo as well as restaurants andscale commercial facilities and public factories, and medical facilities etc. It ⚫ In addition to a stately tiled
other small stores with a total floor
facilities situated along the mainis facing a municipal road with highfacade, the property is fullyarea of up to 100 tsubo, this property arterial road.
traffic volume, and it also has
equipped with premium
accommodates a wide range ofhousehold facilities.
● A neighborhood-type commercial parking space, so customers fromtenants and is able to meet thesurrounding
areas
can
be
facility comprised of tenants⚫ Adjacent to the Roppongi area, adiverse needs of customers. With
anticipated.
centered around living necessity
leading shopping spot in central
each building advantageously●A neighborhood-type commercial
stores such as food stores etc.
Tokyo.
positioned on the premises, it●Has capacity to gather customers facility comprised of tenants such
benefits from excellent visibility from from surrounding areas, as it is afood supermarket, clothing stores, a
the Japan National Route 3 which it busy area with good traffic access.
sports club, and medical facilities etc.
faces. Furthermore, a sufficientnumber of parking spaces areavailable on the premises allowing it
to accommodate visitors from thesurrounding area.

⚫ Located in the Daikanyama area,
which produces the latest trends.
⚫ In addition to a stately tiled
facade, the property is fully
equipped with premium
household facilities.
⚫ Adjacent to the Shibuya andEbisu areas, which are leading
shopping spots in central Tokyo.

53

Portfolio List
Asset type

Residence

Residence

Residence

Residence

Residence

Residence

Property nameUrban Park Namba

Urban Park Gokokuji

Urban Park Kashiwa

Urban Park Ryokuchi-koen

Urban Park Koenji

Urban Park Ichigao

Acquisition price

1,490 million yen

1,460 million yen

1,186 million yen

1,550 million yen

1,167 million yen

1,810 million yen

Appraisal value

1,650 million yen

1,510 million yen

1,190 million yen

1,620 million yen

1,180 million yen

1,850 million yen

Structure/Floors

RC 14FRC B1F/5F

SRC B1F/8F

RC 8F

RC 4F

RC SF/1B

Location

Osaka City, Osaka

Toshima Ward, Tokyo

Kashiwa City, Chiba

Suita City, Osaka

Suginami Ward, Osaka

Yokohama City, Kanagawa

942.66 m2

Lot area

670.39 m2(Of which, 50.85 m2 is contributed to
Toshima Ward as road)

1,597.85 m2

2,804.56 m2

988.26 m2

1,758.84㎡

Total floor areas

2,776.87 m2

2,451.72 m2

4,243.71 m2

5,854.64 m2

1,524.34 m2

5,243.85㎡

Construction completion

January 9, 2013

February 28, 1990

August 28, 1997

March 10,1989

October 13, 1987

July 10, 1998

⚫ Located near Namba, one of
Osaka’s leading commercial
areas.
⚫ In addition to an elegant facade,the building is fully equipped withpremium household facilities.

Property Features⚫ Located in an area with strong⚫ Located in the Kashiwa area, ademand from various tenantleading bed town in Chiba, withgroups for single-type residences,
an excellent access to Central
due to the location characteristics
Tokyo.
of having concentration of⚫ Further medium- to long-term
universities and junior colleges as
growth is expected in the area,
well as Toshima ward having awith completion of various
relatively high ratio of single
redevelopment plans in front ofhouseholds.
Kashiwa Station.

⚫ Located in the Ryokuchi-koen⚫ Located in the Koenji area, which ●The area surrounding “Ichigao”
area, with good traffic
allows for easy access to major
station has many quiet residential
accessibility, providing a lush
areas in the Tokyo metropolitan
areas, and has good traffic
greenery living environment sucharea.
convenience to the central parts ofas “Hattori Ryokuchi-koen”.
Tokyo and Yokohama, and has⚫ With many shopping areas,strong demand In particular for⚫ Popular residential area primarily
discount supermarkets,
families.
for families since it is located inrestaurants and pubs, having a●Consists of 62 housing units
the Hokusetsu area, which has ahigh appeal to young singletargeting families with floorplanshigh level of education.
person households of businessbetween 2LDK to 3LDK (exclusive
person and students.
⚫ Appealing primarily for families
since some of the units have been ⚫ Very popular residential area with area: 62.36㎡ to 79.76㎡ ).
renovated and since it is equipped
its own unique culture, which canwith substantial grade household
be seen in its cafes, vintage
equipment.
clothing shops, and clubs with live
music, among other locations.

54

Portfolio List
Asset type

Residence

Residence

Residence

Residence

Residence

Logistics

Property nameUrban Park Gyotoku

Shiroi Logiman

Urban Park Sekime

Urban Park Imazato

Urban Park Yoyogi

Iwatsuki Logistics

Acquisition price

1,430 million yen

2,470 million yen

2,150 million yen

993 million yen

1,740 million yen

6,942 million yen

Appraisal value

1,500 million yen

2,470 million yen

2,150 million yen

993 million yen

1,740 million yen

7,310 million yen

Structure/Floors

SRC 10F

RC 13F

SRC 15F

RC 10F

RC 8F

Steel construction, zincplated steel roofing, 5floorsLocation

Ichikawa city, Chiba

Shiroi city, Chiba

Osaka City, Osaka

Osaka City, Osaka

Shibuya Ward, Tokyo

Saitama City, Saitama

Lot area

1,122.57㎡（Number derived by multiplying
the ratio of holdings）

2,346.39㎡

1,803.70㎡

464.09㎡

15,623.14 m2

Total floor areas

3,301.89㎡（Number derived by multiplying
the ratio of holdings）

8,190.11㎡

4,862.83㎡

1,418.03㎡

29,729.72 m2

Construction completion

March 1, 1995

May 9, 1995

August 18, 1989

December 20, 1991

September 4, 2017

October 29, 2014

● From the nearest “Minami
Gyotoku” station, it is within a 20minute train ride to Otemachi and
Nihonbashi stations, and residential
demand is expected widely ranging
from DINKs to single persons,centering mainly around families.
● The floor plan for all 40 housing
units are 3DK (exclusive area: 58.43㎡).

● Located in an area which gathers
living-convenient facilities close by.
such as supermarkets and DIY
stores.
● As the property has been
constructed with for-salespecifications, it has high-grade
facilities and common area.
● Consists of family-type housing
units (exclusive area: approximately
70-90㎡).

●Good traffic access, located at an
approximate 6-minute walk from
“Sekime-Takadono” station, and an
approximate 7-minute walk from
“Sekime” and “Sekime-Seiiku”
stations.
●Good living-convenience, wherecommercial facilities such as
supermarkets are gathered centeredalong national highway route 163.
●It has excellent security andfacilities, and lease demand is
expected from single persons andfamilies.

11,485.06㎡

22,448.08㎡

Property Features●Good traffic access, located at an Abode Yoyogi Parkside is a newresidential development very wellapproximate 5-minute walk fromlocated to major parks including“Imazato” station on the Kintetsu
Yoyogi Park, approximately 200
Osaka Line, and a 7-minute walkmeters, Shinjuku Gyoen Nationalfrom “Shouji” station on the
Gardens approximately 600 meters
Sennichimae Line.
● The area surrounding the nearest and the Meji Jingu Shrine grounds
located directly to the rear of thestation has supermarkets etc. andproperty.
has favorable living convenience.
●Consists of family-type housing
units (exclusive area: mainly 60㎡-70㎡).

⚫ Located in the Iwatsuki area,
which offers access to the central
Tokyo, northern Kanto, andTohoku areas.
⚫ Equipped with specifications thatoffer a high level of versatility,
such as the vehicle berths, floor
height, and column interval.
⚫ The property is situated in a zoneof Saitama City that offers
incentives for logistics facilities
and therefore benefits fromconsiderable government
support.

55

Portfolio List
Asset type

Logistics

Logistics

Logistics

Logistics

Logistics

Logistics

Property nameYokohama Logistics

Funabashi Logistics

Baraki Logistics

Tokorozawa Logistics

Funabashi Nishiura
Logistics I

Funabashi Nishiura
Logistics II

Acquisition price

3,560 million yen

7,875 million yen

4,700 million yen

1,300 million yen

3,000 million yen

821 million yen

Appraisal value

4,170 million yen

8,650 million yen

4,870 million yen

1,350 million yen

3,020 million yen

850 million yen

Structure/Floors

RC 8F

Building 1: Steel construction, flat roof, zincplated steel roofing, 8 floors
Building 2: Reinforced concrete structure

RC S 5F

S 2F

R 2F

R 4F

Location

Yokohama City, Kanagawa

Funabashi City, Chiba

Ichikawa City, Chiba

Tokorozawa City, Saitama

Funabashi City, Chiba

Funabashi City, Chiba

Lot area

10,565.95 m2

19,858.00 m2

6,240.96 m2

8,645.63 m2

7,142.00 m2

3,964.00 m2

Total floor areas

18,387.89 m2(including 256.15 m2 breakareas etc.)

38,871.45 m2(two buildings combined)

12,471.50 m2

5,994.75 m2

14,018.82 m2

6,316.32 m2

Construction completion

October 1, 1994

1: September 25, 1992
2: August 5, 1997

August 14, 2015

April 30, 1999

October 11, 1985

Warehouse: Mar.
20, 1991

Property Features⚫ Located in the Yokohama bay⚫ Located in the Chiba bay area,
area, where there are many
where there are many logistics
logistics facilities.
facilities.
⚫ Equipped with specifications that ⚫ Equipped with specifications thatoffer a high level of versatility,
offer a high level of versatility,
such as vehicle berths, floor
such as vehicle berths, floor
height, and column interval.
height, and column interval.
⚫ In addition to accessing Central⚫ In addition to accessing Central
Tokyo, it is possible to access theTokyo, it is possible to access thewider Tokyo area thanks to thewider Tokyo area thanks to the
opening of the Shinagawa section
opening of the Tokyo Gaikanof the Shuto Expressway Central
Expressway.
Circular Route.

Plant: May 15, 1972
Office: May 13, 1986

⚫ A multi-tenant logistics facility
located near the Wangan Ichikawa
IC of the East Kanto Expressway.
⚫ Enjoys good access to Central
Tokyo as well as the consumption
areas throughout Chiba, allowing
tenants to respond to the needs of
e-commerce operators.
⚫ Located within approx. 5-minute
walk from Futamata-Shinmachi
station on the JR Keiyo Line,
allowing for securement of
employees.
⚫ Property with highly versatile
specifications, including one
passenger elevator, two freight
elevators, a floor height of approx.
6.5 m and a pillar span of approx. 9m-11 m.

⚫ A multi-tenant logistics facility⚫ Appealing from a standpoint of⚫ Appealing from a standpoint ofused also as a warehouse,securing workforce, as it issecuring workforce, as it islocated around 8.7 km from theconveniently located in the Chiba
conveniently located in the Chiba
Tokorozawa IC on the Kan-Etsu
Bay area, where there are many
Bay area, where there are many
Expressway.
logistics facilities, and it is locatedlogistics facilities, and it is located⚫ Good access to Central Tokyo,
at approx. 1.4km from the closest
at approx. 1.1km from the closest
and also capable of covering a
train
station.
train station.
wide range of destinations for⚫ In addition to access to Central⚫ In addition to access to Central
consumption in the Tokyo
Tokyo, the location allows easy
Tokyo, the location allows easy
Metropolitan area with the
opening of the Gaikan
access to wide range of areas
access to wide range of areas
Expressway and the Metropolitan
throughout Tokyo via partial
throughout Tokyo via partial
Inter-City Expressway.
opening of the Gaikan
opening of the Gaikan⚫ Property with highly versatile
Expressway.
Expressway.
specifications, including two⚫
Thefacilityisprovidedwithhighly⚫
The facility is provided with highly
freight elevators, a floor height ofversatile specifications such asversatile specifications such as
approx. 5.5 m-6.0 m, and a pillar
high-ceiling floors and a pillar
high-ceiling floors and a pillar
span of approx. 9.5 m.
span.
span.

56

Portfolio List
Asset type

Logistics

Hotel

Hotel

Hotel

Property name

Matsubushi Logistics

R&B Hotel Umeda East

Smile Hotel Namba

Best WesternTokyo Nishi-kasai

Acquisition price

2,755 million yen

1,710 million yen

702 million yen

2,069 million yen

1,750 million yen

3,827 million yen

Appraisal value

2,860 million yen

1,710 million yen

702 million yen

2,270 million yen

1,430 million yen

3,660 million yen

Structure/Floors

RC 3F

S 2F

S 2F

RC 9F

S 9F

SRC B1F/9F

Location

Kita-Katsushika-gun,
Saitama

Funabashi city, Chiba

Funabashi city, Chiba

Osaka City, Osaka

Osaka City, Osaka

Edogawa Ward, Tokyo

Lot area

11,580.65 m2

13,420.44㎡

8,268.35㎡

730.26 m2

285.28 m2

1,418.00 m2

Total floor areas

19,833.47 m2

7,813.65㎡

4,384.83㎡

3,945.65 m2

1,711.42 m2

5,293.88 m2

Construction completion

March 31, 1997

May 19, 2003

September 5, 2001

October 20, 2000

February 6, 2008

March 19, 1991

●Located within “Funabashi Hightech park”, an inland industrial park
surrounded by factories and awarehouse etc.
●Located near national highway
route 16, has good access 30km
from the city center and Narita
Airport.
● Located in a corner plot of landfacing a 12m road and 12m road.

⚫ Located near Umeda, one of
Osaka’s leading office andcommercial areas.
⚫ With over 200 single-occupancy
rooms, the hotel is able toaccommodate significant
business- and tourism-based
demand.

Property Features

Logistics

Logistics

Funabashi Hi-Tech ParkⅠ Funabashi Hi-Tech ParkⅡ⚫ Located in Matsubushi area, with ● Located within “Funabashi Higheasy access to nearby areas such tech park”, an inland industrial parkas Saitama Prefecture and Chiba surrounded by factories and aPrefecture, in addition to Kitawarehouse etc.
Kanto, Joban, and Tohoku areas. ● Located near national highway
route 16, has good access 30km
⚫ Provided with versatilefrom the city center and Narita
specifications, such as loading
Airport.
berths, cargo elevators, high● Located in a corner plot of landceiling, and a pillar span.
facing a 16m road and 12m road.
⚫ Back ups from the local
government through activities by ● The building’s gross floor area isapproximately 2,400 tsubo, and has
Saitama Prefecture to attract
adequate functions as acompanies (the “Chance Maker
manufacturing. production center.
Saitama Strategy”).

⚫ Located near Namba, one of⚫ A business hotel located within
Osaka’s leading commercial
approx. a 2-minute walk fromareas.
Nishikasai Station of Tokyo Metro
Tozai Line.
⚫ In addition to excellent access toNamba, located near Kyocera⚫ Excellent location characteristics
Dome Osaka, addressing multiple
that can attract a fair amount ofbusiness- and tourism-based
Tokyo Disney Resort-related
demand.
leisure travelers, as it stands in astraight-line distance of approx. 4
km away from Tokyo Disney
Resort.
⚫ A hotel with great appeal to avariety of guests with various
types of guest rooms dependingon the intended use.

57

Portfolio List
Asset type

Hotel

Hotel

Hotel

Hotel

Hotel

Property nameBest Western Yokohama

Hotel WBF
Fukuoka Tenjin Minami

GLANSIT Akihabara

Best WesternTokyo Nishikasai Grande

Hotel WBF Art Stay Namba

Acquisition price

3,248 million yen

1,970 million yen

2,500 million yen

3,180 million yen

2,000 million yen

Appraisal value

3,220 million yen

1,940million yen

2,540 million yen

3,130 million yen

1,520 million yen

Structure/Floors

SRC B1F/9F

RC 10F

SRC 10F/B1F

S 8F

RC9F

Location

Yokohama City, Kanagawa

Fukuoka City, Fukuoka

Chiyoda Ward, Tokyo

Edogawa Ward, Tokyo

Osaka City, Osaka

Lot area

782.66 m2

534.94 m2

167.74 m2

657.00 m2

335.31 m2

Total floor areas

4,686.09 m2

2,281.49 m2

1,081.97 m2

2,755.19 m2

2,061.38 m2

Construction completion

September 21, 1987

February 20, 2017

September 20, 2017

February 7, 2017

April 7, 2017

Property Features⚫ A business hotel located within⚫ The hotel is centrally locatedapprox. 4-minute walk frombetween Tenjin and Nakasu, thus
“Tsurumi” Station on the JR Keihin
it is expected to attract tourists
Tohoku Line and a 3-minute walkand business guests.
from “Keikyu Tsurumi” Station on the ⚫ Demand for hotels is expected to
Keihin Kyuko Line.
increase with a rising number of⚫ Excellent location characteristics thatpassengers using the Fukuoka
can attract both business travelers
Airport and development ofand leisure travelers, as its location
additional runways.
has good access to the major areas in⚫ Completed relatively recently in
Kanagawa including Yokohama andFebruary 2017.
Kawasaki as well as to Haneda
Airport.
⚫ A hotel with great appeal to a variety
of guests with various types of guest
rooms depending on the intendeduse.

⚫ Located in the Akihabara area,⚫ Located in the Nishi Kasai area,⚫ Located in the Namba area, one
one of the largest tourism spots inwhich provides the easy access toof the largest commercial areas inTokyo.
main business and tourism areas
Osaka.
⚫ Appealing to guests for thein Tokyo.
⚫ Good access from sightseeing
purpose of business and tourism ⚫ The hotel flexibly responds to the
spots and business district,as it is located in a highly
needs of many business people
thereby expected to meet huge
convenient and flourishing area.
and tourists as it provides various
business and tourism demand.
⚫ Offers three types of capsules,
room types in accordance with⚫ Completed relatively recently inattracting various customers.
purpose of use.
April 2017..
⚫ Completed relatively recently in⚫ Completed relatively recently in
September 2017.
February 2017.

58

Balance of Payments of Individual Properties＜SAR>(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

(Unit: thousand yen)

OFC-01

OFC-03

OFC-04

OFC-05

OFC-06

Minami-Azabu Shibuya Building

Honmachibashi Tower

Nishi-Shinjuku Matsuya Building

Alphabet Seven

Shibuya MK Building

8th FP

9th FP

8th FP

9th FP

8th FP

9th FP

8th FP

9th FP

8th FP

9th FP

Total operating revenue
from real estate leasing

96,95095,947217,369

215,558

107,954

108,781

75,36775,266

79,47879,693

Lease businessrevenue

88,172

88,068

192,577

193,563

99,607

101,784

68,814

66,87073,93875,321Other lease businessrevenue

8,777

7,879

24,792

21,994

8,346

6,996

6,553

8,396

5,539

4,372

Total operating expenses
from real estate leasing

26,38627,446

62,771

58,87135,362

34,383

20,105

17,242

14,12913,522

Management fee

5,703

5,971

13,845

15,180

6,802

6,835

4,735

4,564

5,115

4,797

400

400

400

400

400

400

400

412

350

350

Utilities expenses

7,077

6,085

25,25918,763

8,790

7,439

4,754

3,913

3,893

3,078

Insurance premium

116

115

358

354

129

127

99

92

45

44

Repair expenses

468

1,921

1,556

2,159

3,714

3,374

1,990

1,807

235

530

Taxes and dues

4,560

4,535

19,73019,763

3,426

3,410

6,214

6,208

4,322

4,327

Other expenses

8,061

8,416

1,620

2,250

12,09912,796

1,910

244

168

393

NOI

70,56368,500154,598

156,686

72,591

74,39755,26258,02365,34866,170Depreciation

11,556

11,56545,34345,359

8,440

8,744

5,426

5,617

3,342

3,386

Operating income (loss)
from real estate leasing

59,00656,934109,255

111,327

64,15165,65349,83652,40662,00662,784

-

637

-

1,132

258

16,631

7,801

-

-

3,797

7,056367,863

154,598

155,554

72,332

57,766

47,46058,02365,34862,373

2,962,948

2,952,020

5,860,272

5,816,046

1,820,838

1,828,725

1,841,780

1,101,697

2,092,186

2,092,597

Trust fee

Capital expenditures
NCF
Period-end book value

59

Balance of Payments of Individual Properties＜SAR>(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

(Unit: thousand yen)

OFC-08

OFC-09OFC-10

OFC-11

OFC-12Asahi Building

Hakata-eki East Place

Nihonbashi Hamacho
Park Building

Amusement Media Gakuin
HonkanHigashi Kobe Center Building

8th FP

8th FP

8th FP

8th FP

9th FP

9th FP

9th FP

9th FP

8th FP

9th FP

Total operating revenue
from real estate leasing

226,226

226,051

102,116

104,329

48,23851,571

311,330

318,964

Lease businessrevenue

208,203

210,058

91,437

94,303

48,23851,571275,087

282,767

Other lease businessrevenue

18,022

15,992

10,67910,025--36,24336,197

Total operating expenses
from real estate leasing

60,77364,91026,002

28,69812,542

12,112

119,299

114,870

Management fee

15,94815,720

7,985

8,041

824

880

26,551

26,457

400

400

400

400

400

400

400

400

Utilities expenses

19,325

17,490

7,185

6,986

-

-

35,34233,035

Insurance premium

357

353

167

165

123

122

656

649

Trust fee※※

Repair expenses

7,053

12,566

1,884

4,881

68

30

2,504

4,782

Taxes and dues

16,195

16,123

6,801

7,079

4,299

4,299

29,147

29,165

Other expenses

1,493

2,254

1,577

1,143

6,826

6,379

24,697

20,380NOI

165,452

161,140

76,11475,63035,69539,459

192,031204,094

Depreciation

26,11926,611

7,391

7,777

2,837

2,837

32,80633,006

Operating income (loss)
from real estate leasing

139,332

134,529

68,72367,85332,85836,622

159,225

171,087

Capital expenditures

12,02024,176

13,571

5,788

-

-

1,081

15,795

NCF

153,431

136,964

62,543

69,84135,69539,459190,949

188,299

6,330,182

6,327,747

2,316,816

2,314,827

1,458,794

1,455,957

7,648,262

7,631,050

Period-end book value

2,592,734

2,594,39060

Balance of Payments of Individual Properties＜SAR>(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

(Unit: thousand yen)

OFC-13
OfficeTotal

Amusement Media Gakuin
Shinkan
8th FP

9th FP

RSC-01

RSC-02

RSC-05

Urban Park Azabujuban

Urban Park Daikanyama

Urban Park Namba

8th FP

8th FP

8th FP

9th FP

Total operating revenue
from real estate leasing

1,352,983

1,362,266

59,237

57,827

187,268

193,318

50,69749,759Lease businessrevenue

1,228,922

1,247,159

55,02754,777

176,407

186,271

49,20849,255

Other lease businessrevenue

124,060

115,107

4,209

3,050

10,860

7,046

1,489

504

Total operating expenses
from real estate leasing

392,534

389,703

11,293

10,94944,40537,79912,189

9,334Management fee

89,70190,824

2,652

2,107

8,556

9,922

2,585

2,561

Trust fee

4,350

4,362

350

350

350

350

350

350

116,754

100,575

503

669

4,287

3,778

374

351

2,130

2,098

57

57

196

194

63

63

Repair expenses

22,06835,968

2,380

2,909

10,535

7,242

2,368

2,158

Taxes and dues

98,900100,957

2,831

2,874

11,39911,442

2,820

2,821

Other expenses

58,62754,916

2,517

1,981

9,080

4,870

3,627

1,029

NOI

960,449

972,562

47,943

46,878142,863

155,518

38,50740,425

Depreciation

148,556

150,274

4,852

4,915

12,686

12,909

7,537

7,541

Operating income (loss)
from real estate leasing

811,892822,288

43,091

41,962130,176

142,60930,97032,883

Capital expenditures

35,62278,403

1,019

2,379

3,257

7,733

615

-

NCF

924,826

894,159

46,92344,498

139,605

147,785

37,89140,42535,955,507

35,149,171

2,085,301

2,082,765

6,384,104

6,378,928

1,513,317

1,505,775

Utilities expenses
Insurance premium※

Period-end book value

1,030,689

9th FP

9th FP

8th FP

9th FP

※

1,034,110

61

＜SAR>

Balance of Payments of Individual Properties(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

(Unit: thousand yen)

RSC-06

RSC-07

RSC-08

RSC-09

RSC-10Urban Park Gokokuji

Urban Park Kashiwa

Urban Park Ryokuchi-koen

Urban Park Koenji

Urban Park Ichigao

8th FP

9th FP

8th FP

9th FP

8th FP

9th FP

8th FP

9th FP

9th FP

Total operating revenue
from real estate leasing

52,18751,611

38,09437,07658,38356,47836,64736,321

42,764

Lease businessrevenue

50,62747,45037,18135,901

55,57554,38834,29433,80741,602Other lease businessrevenue

1,560

4,161

913

1,174

2,808

2,090

2,352

2,513

1,162

Total operating expenses
from real estate leasing

15,36819,566

12,653

10,84213,80822,457

6,817

8,447

5,071

Management fee

4,603

3,806

2,151

1,969

2,830

2,778

1,810

1,796

2,403

400

400

350

350

350

350

400

400

308

Utilities expenses

2,405

2,222

725

589

2,323

2,212

1,467

1,560

815

Insurance premium

53

52

85

84

119

117

36

36

81

Repair expenses

3,340

7,935

5,900

3,674

2,177

6,631

1,512

2,326

812

Taxes and dues

1,855

1,909

2,951

2,950

3,578

3,583

962

969

-

Other expenses

2,710

3,239

489

1,225

2,429

6,784

626

1,358

648

NOI

36,81932,04525,441

26,23444,57434,02029,83027,87337,693

Depreciation

5,310

5,374

7,143

7,241

7,842

7,986

2,479

2,574

4,489

Operating income (loss)
from real estate leasing

31,50826,671

18,297

18,992

36,732

26,03427,35025,29933,204-

11,172

4,268

2,191

5,119

3,153

-

7,707

1,611

36,81920,872

21,172

24,04239,45530,866

29,83020,16636,082

1,506,326

1,512,125

1,246,619

1,241,569

1,612,763

1,607,931

1,189,315

1,194,447

1,930,897

Trust fee

Capital expenditures
NCF
Period-end book value

62

Balance of Payments of Individual Properties＜SAR>(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

(Unit: thousand yen)

RSC-10Residence
Total

Urban Park Gyotoku
9th FP

8th FP

9th FP

LGC-01

LGC-02

LGC-03

Iwatsuki Logistics

Yokohama Logistics

Funabashi Logistics

8th FP

9th FP

8th FP

9th FP

8th FP

9th FP

Total operating revenue
from real estate leasing

34,607

482,516

559,765

202,816

197,147

260,597

257,660

Lease businessrevenue

32,398458,322535,853

187,713

187,713

241,793

241,745

Other lease businessrevenue

2,208

24,19423,912

15,103

9,433

18,804

15,914

Total operating expenses
from real estate leasing

6,132

116,536

130,600

37,66930,75657,17951,891

Management fee

1,670

25,19029,017

5,920

5,650

11,308

11,618Trust fee

308

2,550

3,167

350

350

400

400

Utilities expenses

823

12,087

13,021

15,155

9,433

17,047

13,247

Insurance premium

53

612

740

275

272

397

392

※

※

Repair expenses

2,226

28,21535,916

2,073

1,111

4,808

3,026

Taxes and dues-

26,39926,55013,728

13,63023,05523,015

Other expenses

1,049

21,48022,185

166

307

162

191

NOI

28,475

365,979

429,165

165,146

166,390

203,418

205,769

Depreciation

3,236

47,85356,27046,54446,60926,91826,992

Operating income (loss)
from real estate leasing

25,238318,126

372,895

118,602

119,780

176,499

178,777

Capital expenditures

5,256

14,281

41,206

1,627

3,294

2,987

3,387

NCF

23,218351,697

387,958

163,519

163,096

200,430

202,381

1,517,687

15,537,748

18,972,128

6,648,961

6,605,645

7,812,120

7,788,516

Period-end book value

3,767,829

3,749,579

63

Balance of Payments of Individual Properties＜SAR>(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

(Unit: thousand yen)

LGC-04

LGC-05

LGC-06

LGC-07

LGC-08Baraki Logistics

Tokorozawa Logistics

Funabashi Nishiura LogisticsⅠ

Funabashi Nishiura LogisticsⅡ

Matsubushi Logistics

8th FP

9th FP

8th FP

9th FP

8th FP

9th FP

8th FP

9th FP

8th FP

9th FP

※

※

※

※

※

※

※

※

※

※

1,353,894

1,354,721

2,959,872

857,919854,936

2,733,177

2,725,589

Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue
Total operating expenses
from real estate leasing
Management fee
Trust fee
Utilities expenses
Insurance premium

Repair expenses
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

4,659,731

4,643,9782,967,341

64

＜SAR>

Balance of Payments of Individual Properties(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

Logistics facility
Total

8th FP

9th FP(Unit: thousand yen)

HTL-01

HTL-02

HTL-03

HTL-04R&B Hotel Umeda East

Smile Hotel Namba

Best WesternTokyo Nishi-kasai

Best Western
Yokohama

8th FP

9th FP

8th FP

9th FP

8th FP

9th FP

8th FP

9th FP

Total operating revenue
from real estate leasing

887,758

931,180

65,302

65,21231,31919,41084,60084,60080,40080,400

Lease businessrevenue823,769

894,133

65,302

65,21231,31919,41084,60084,60080,40080,400

Other lease businessrevenue

63,98937,047

-

-

-

-

-

-

-

-

Total operating expenses
from real estate leasing

210,388

165,204

6,685

9,349

4,710

5,677

10,181

12,853

7,747

7,241

Management fee

31,11030,610

742

742

660

660

1,200

1,200

1,200

1,200

Trust fee

3,050

3,050

350

350

550

550

400

400

400

400

Utilities expenses

48,092

34,684

4

1

-

-

-

-

-

-

Insurance premium

1,438

1,420

113

111

53

53

126

125

106

105

Repair expenses

29,42913,490

-

2,490

1,111

1,539

461

3,084

772

805

Taxes and dues

77,105

77,187

5,450

5,452

2,281

2,276

7,970

8,019

4,705

4,706

Other expenses

20,162

4,760

23

199

53

598

22

24

561

24

NOI

677,370

765,975

58,61755,863

26,60913,73374,41871,74672,65273,158Depreciation

144,591

145,828

9,786

9,844

12,225

12,21011,84911,945

12,524

13,030Operating income (loss)
from real estate leasing

532,779

620,146

48,83146,01914,383

1,522

62,56859,80060,12860,128

Capital expenditures

61,012

42,632

-

3,389

-

4,745

799

16,17020,2271,666

NCF

616,358

723,343

58,61752,47426,6098,987

73,61855,57552,42571,49230,793,506

30,690,309

2,121,325

2,114,870

1,682,845

1,675,380

3,855,577

3,859,803

3,271,906

3,260,542

Period-end book value

65

Balance of Payments of Individual Properties＜SAR>(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

(Unit: thousand yen)

HTL-05

HTL-06

HTL-07

HTL-08

Hotel WBF
Fukuoka Tenjin Minami

GLANSIT Akihabara

Best WesternTokyo Nishikasai Grande

Hotel WBF Art Stay Namba

8th FP

9th FP

8th FP

9th FP

8th FP

9th FP

8th FP

9th FP

Hotel
Total

8th FP

9th FP

Total operating revenue
from real estate leasing

70,00270,002477,410461,698

Lease businessrevenue

70,00270,002477,410445,636

Other lease businessrevenue---

16,062

Total operating expenses
from real estate leasing

6,796

6,715

49,976

56,115

Management fee

990

990

7,419

7,419

Trust fee

400

400

3,200

3,200

-

-

4

1

64

63

592

585

Utilities expenses
Insurance premium
※

※

※

※

※

※

Repair expenses

25

-

2,371

8,292

Taxes and dues

5,293

5,239

35,63935,679Other expenses

22

22

748

937

NOI

63,20563,286427,433

405,583

Depreciation

10,857

10,857

79,17779,885

Operating income (loss)
from real estate leasing

52,34852,429348,256

325,697--

21,02625,971

63,20563,286

406,407379,6113,175,809

3,164,952

20,576,624

20,525,527

Capital expenditures
NCF
Period-end book value

1,965,568

1,956,921

2,508,592

2,503,949

1,994,998

1,989,10866

Balance of Payments of Individual Properties(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

＜SAR>(Unit: thousand yen)Total

8th FP

9th FP

Total operating revenue
from real estate leasing

3,200,669

3,314,911

Lease businessrevenue

2,988,424

3,122,781

Other lease businessrevenue

212,244

192,129

Total operating expenses
from real estate leasing

769,435

741,624

Management fee

153,423

157,872

Trust fee

13,15013,779

Utilities expenses

176,939

148,284

Insurance premium

4,773

4,846

Repair expenses

82,084

93,667

Taxes and dues

238,044

240,373

Other expenses

101,019

82,8002,431,233

2,573,287

420,178

432,258

Operating income (loss)
from real estate leasing

2,011,055

2,141,028

Capital expenditures

131,943

188,2142,299,290

2,385,072

102,863,386

105,337,137

NOI
Depreciation

NCF
Period-end book value

67Balance of Payments of Individual Properties＜SSR>(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

(Unit: thousand yen)

OFC-14OFC-15

OFC-16

OFC-17

OFC-18Seishin Building

NK Building

Tsukasamachi Building

Takadanobaba Access

Azabu Amerex Building

ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020
（6months）（7months）（6months）（7months）（6months）（7months）（6months）（7months）（6months）（7months）
Total operating revenue
from real estate leasing

243,179

289,697

109,381

170,580

121,491

136,876108,989

129,818

71,43181,609Lease businessrevenue

220,781265,201

99,147

153,233

105,321

122,874

88,948109,250

64,11873,464

Other lease businessrevenue

22,397

24,496

10,233

17,346

16,17014,001

20,041

20,568

7,313

8,145

Total operating expenses
from real estate leasing

51,75867,04956,821

39,111

23,05629,88935,63442,017

20,14826,321

Management fee

13,807

15,50939,20014,496

6,845

8,132

15,377

16,022

8,095

9,295

Utilities expenses

13,20913,237

4,729

5,629

6,924

6,937

7,670

8,458

3,428

3,342

Insurance premium

308

427

206

282

192

267

231

324

117

163

Repair expenses

2,311

4,434

1,116

1,683

703

2,419

1,850

2,102

446

1,098

750

875

750

875

750

875

750

875

375

437

Taxes and dues

20,746

31,102

10,595

15,876

7,402

11,071

9,154

13,693

7,602

11,401Other expenses

622

1,461

226

268

238

186

600

540

82

582

NOI

191,420

222,648

52,560131,468

98,434

106,986

73,35587,801

51,28255,288Depreciation

15,155

18,170

7,973

10,1808,483

10,371

11,10614,140

2,320

2,756

Operating income (loss)
from real estate leasing

176,265

204,477

44,587

121,288

89,951

96,61462,24873,661

48,96252,532

3,460

21,05055,36013,694

7,752

968

24,536

13,811

403

948

187,961

201,598-2,799117,774

90,683106,018

48,81973,99050,88054,3407,973,974

7,976,854

3,811,738

3,815,252

3,860,960

3,851,556

3,431,424

3,431,095

2,034,451

2,032,643

Trust fee

Capital expenditures
NCF
Period-end book value

68

＜SSR>

Balance of Payments of Individual Properties(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

(Unit: thousand yen)

OFC-19OFC-20

OFC-21

RTL-01

RTL-02Hiei-Kudan Building

Shin-Yokohama Nara Building

ポータル秋葉原

La Park Kishiwada

Suroy Mall Chikushino

ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020
（6months）（7months）（6months）（7months）（6months）（7months）（6months）（7months）（6months）（7months）
Total operating revenue
from real estate leasing

66,534

79,911

83,417

94,24935,58050,388512,339564,723

287,894

326,362

Lease businessrevenue

63,924

77,59568,64678,352

33,91535,568388,272438,691

271,883

319,416

Other lease businessrevenue

2,610

2,315

14,771

15,897

1,665

14,820124,067

126,032

16,0106,946

Total operating expenses
from real estate leasing

20,00523,98926,23832,719

4,624

9,273

295,714349,537

82,750117,694

Management fee

12,19912,5499,447

11,081

1,966

3,863

134,111

146,716

40,54955,770Utilities expenses

18

27

7,172

6,710

1,470

1,618

110,470

109,724

4,490

6,358

Insurance premium

119

136

215

302

43

60

1,566

2,140

830

1,112

Repair expenses

32

167

694

1,974

736

1,428

1,212

19,657

6,342

12,300Trust fee

750

875

750

875

401

466

1,850

2,158

750

875

Taxes and dues

6,732

10,123

7,706

11,548-1,808

44,446

66,737

19,59529,405

Other expenses

154

110

251

227

6

28

2,058

2,402

10,191

11,872

NOI

46,52855,921

57,17961,53030,956

41,115

216,625

215,186

205,143

208,668

Depreciation

2,990

3,472

9,484

11,587

3,141

3,770

46,02755,43732,194

38,125

Operating income (loss)
from real estate leasing

43,53752,44947,69449,942

27,81437,344

170,597

159,749

172,948

170,543

973

971

6,840

-

-

-

43,86942,041

41,501

799

45,55654,95050,33961,53030,956

41,115

172,756

173,145

163,643

207,869

1,969,055

1,966,554

1,941,607

1,930,020

1,559,624

1,555,854

6,502,484

6,489,088

7,563,063

7,525,737

Capital expenditures
NCF
Period-end book value

69Balance of Payments of Individual Properties＜SSR>(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

(Unit: thousand yen)

RTL-03

RTL-04

RSC-12

RSC-13

RSC-14

Seiyu Minakuchi

Suroy Mall Nagamine

Shiroi Logiman

Urban Park Sekime（Matsuya Residence Sekime）

Urban Park Imaszato（Urban Plaza Imazato）

ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020
（6months）（7months）（6months）（7months）（6months）（7months）（6months）（7months）（6months）（7months）
Total operating revenue
from real estate leasing※※

185,389

201,417

148,358

163,139

85,744

101,225

38,74547,195

Lease businessrevenue※※

150,589

167,757

132,831155,054

78,793

91,77236,86844,759Other lease businessrevenue※※

34,79933,65915,526

8,084

6,950

9,453

1,876

2,436

Total operating expenses
from real estate leasing

37,29647,047

65,19170,81845,40762,80531,23433,207

13,552

12,760Management fee

6,039

7,046

16,42818,22820,84429,795

12,533

14,027

5,569

5,518

Utilities expenses--

28,561

29,478

3

-

2,870

3,115

497

557

Insurance premium

672

923

321

425

721

955

334

470

159

225

Repair expenses

1,180

680

5,125

1,363

7,348

8,280

9,545

6,780

3,507

828

750

875

750

875

1,250

1,458

375

437

375

437

Taxes and dues

11,86017,927

13,073

19,584

13,96920,944

5,284

7,934

3,213

4,840

Other expenses

16,793

19,594

931

862

1,270

1,371

290

441

229

353

120,198

130,599

102,950

100,333

54,51068,01725,192

34,43518,04820,98019,246

23,675

12,601

15,475

6,390

7,939

102,149

109,618

83,70476,657

41,90852,54118,802

26,496

568

4,594

3,935

1,976

29,302

8,156

923

4,706

119,630

126,005

99,016

98,35625,20859,861

24,26929,7284,101,482

4,085,096

2,103,870

2,082,171

1,907,134

1,899,815

956,787

953,554

Trust fee

NOI※

Depreciation

44,590Operating income (loss)
from real estate leasing※

Capital expenditures

11,783※54,639※49,054

NCF※※

Period-end book value

4,004,101

3,998,515

70

＜SSR>

Balance of Payments of Individual Properties(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

(Unit: thousand yen)

RSC-15

LGC-09

LGC-10Urban Park Yoyogi（Abode Yoyogi Parkside）

Funabashi Hi-Tech Park Ⅰ

Funabashi Hi-Tech Park Ⅱ

Total

ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020 ended Dec 2019 ended Jul 2020
（6months）（7months）（6months）（7months）（6months）（7months）（6months）（7months）
Total operating revenue
from real estate leasing

42,58345,053※※※※2,391,708

2,774,674

Lease businessrevenue

36,31043,531※※※※

2,054,703

2,426,601

Other lease businessrevenue

6,272

1,521

※

※

※

※

337,004

348,072

Total operating expenses
from real estate leasing

10,400

9,700

6,470

9,095

5,771

7,067

832,076

990,105

Management fee

5,976

5,270

990

1,155

1,650

1,155

351,634

375,635

Utilities expenses

247

288

-

-

-

-

191,766

195,485

Insurance premium

52

72

156

216

97

134

6,344

8,640

Repair expenses

1,552

588

-

-

-

-

43,70465,787

500

583

750

875

750

875

13,376

15,604

Taxes and dues

1,815

2,680

4,558

6,827

3,257

4,882

191,012288,389

Other expenses

255

217

16

21

16

20

34,23640,563NOI

32,18235,352

1,559,632

1,784,568

Depreciation

4,729

5,421

256,635

310,391

Operating income (loss)
from real estate leasing

27,45229,931

1,302,997

1,474,176

231,205

165,460

Trust fee

Capital expenditures
NCF
Period-end book value--

32,18235,352

1,607,080

1,601,658※※

10,395

8,969

※

※
-

※

※

3,851

3,178
※

※
2,688

-

-

※

※

※

※

1,328,427

1,619,107

1,683,787

1,676,080

682,621678,770

57,695,250

57,550,320

71

Actual results of active management and change in investment unit price from the time of listing

Investment
in mezzanine
loan debt 1
October 25, 2017

Implementation of Continuous
Active Management
1st asset
replacement
December 5, 2016

2nd asset
replacement
February 28, 2017

3rd asset
replacement
July 23, 2018

4th asset
replacement
August 21, 2018

Investment
in mezzanine
loan debt 3
December 20, 2018
1st acquisition ofsilent partnership
equity interest
November 28, 2018

2nd follow-on
offering
January 12, 2018
Offer price: ¥106,724

1st follow-on
offering
March 17, 2017
Offer price: ¥96,720

IPO
April 20, 2016

Investment
in mezzanine
loan debt 2
December 20, 2017

Investment
in mezzanine
loan debt 4
January 24, 2019

1st acquisitionof real estate
January 24, 2019

3rd follow-on
offering
August 21, 2018
Offer price: ¥101,985

Investment
in mezzanine
loan debt 5
March 2, 2020

2nd acquisition of silent

5th asset
replacement
March 2, 2020

partnership equity interest
February 26, 2019

Proposal for Merger Execution of Merger
Agreementby Star Asia Group
March 2, 2020

May 10, 2019(¥)(¥100mn)

65,0002,000
スターアジア不動産投資法人の資産規模（右軸）
SAR’s
AUM (right)
スターアジア不動産投資法人の投資口価格（左軸）
SAR’sunit price (left)

60,000

東証REIT指数（左軸）TSE REIT index

55,0001,500

50,00045,0001,000

40,00035,000500

30,0002020/7/20

2020/6/20

2020/5/20

2020/4/20

2020/3/20

2020/2/20

2020/1/20

2019/12/20

2019/11/20

2019/9/20

2019/10/20

2019/8/20

2019/7/20

2019/6/20

2019/5/20

2019/4/20

2019/2/20
2019/3/20

2019/1/20

2018/12/20

2018/11/20

2018/9/20

2018/10/20

2018/8/20

2018/7/20

2018/6/20

2018/5/20

2018/4/20

2018/2/20
2018/3/20

2018/1/20

2017/12/20

2017/11/20

2017/9/20

2017/10/20

2017/8/20

2017/7/20

2017/6/20

2017/5/20

2017/4/20

2017/2/20
2017/3/20

2017/1/20

2016/12/20

2016/11/20

2016/9/20

2016/10/20

2016/8/20

2016/7/20

2016/6/20

2016/5/20

0

2016/4/20

25,000※The closing price of TSE REIT index as of the date of listing of SAR (1,887.75) has been converted based on the closing price of SAR’s investment units on the same day of 98,300 yen. Furthermore, SAR has conducted a 2for-1 investment unit split on the reference date of July 31, 2020. The investment prices prior to such split are also indicated split in half.

72

6. Notes

73

＜注記集＞
P18

note1

Properties which were vacant at the beginning of the period or at the time of property acquisition and for which contracts have been entered into with new tenants have been counted as "Increased" within
the number of new contracts.
The increase ratio has been calculated by subtracting the aggregate amount of monthly rents from existing tenants (i.e. before addition of new tenants) from the aggregate amount of monthly rent of
newly contracted tenants, and then dividing such calculated amount by the aggregate amount of monthly rents from existing tenants (excluding warehouse portion). With respect to properties which werevacant at the beginning of the period or when acquired, and for which contracts have been newly signed with tenants, the rent unit price of surrounding properties at the bottom of the range have beenused as the assumed rent unit price of existing tenants (prior to addition of new tenants) for the purpose of calculating the aggregate amount of monthly rents of existing tenants.

P18

note2

The ratio of the increased portion has been calculated using the aggregate amount of former rent amounts of renewing tenants as the denominator.

P18

note3

The rent gap is the gap between market rent and contract rent with each tenant. The market rent has taken the intermediate value of the expected new contract rents (described
as a range) for each property appraised by CBRE as of the end of the period. With respect to Amusement Media Gakuin Honkan/Shinkan, the net rentable area is used for the
calculation.

P20

note4

For each property, the index of the historical trend has been prepared by assuming that the average tsubo unit price as of the period in which the property was acquired is "100".

P20

note5

The calculation has been made by extracting just the residence portions.

74Disclaimer
This document has been prepared to provide information and is not for soliciting and inviting investment in or recommendingtransaction of certain products. SAR does not guarantee the accuracy or completeness of the information provided in thisdocument although effort has been made to provide correct information based on information available to SAR. Moreover,please note that the contents of this document are subject to change or removal without prior notice. Duplication andreproduction, etc. of the contents contained in this document without prior consent is prohibited. This document includes
graphs, data, etc. publicly disclosed by third parties. Furthermore, the document also includes analysis, judgement and other
opinions by Star Asia Investment Management, Co,. Ltd. concerning such information. This document discusses future
expectations, identifies strategies, contains projections of our results operations or financial condition, or states other forwardlooking information based on certain assumptions, estimates and projections, Known and unknown risks, uncertainties andother factors could cause our actual results, performance or achievements to differ materially from those contained or impliedin any forward-looking statement. We cannot give any assurances that the expectations expressed in these forward-looking
statements will turn out to be correct.
Copying, reprinting or any other use of the contents of this document without prior approval is strictly prohibited.

■ Contact regarding this material
Akiko Kanno, Director and CFO (General Manager of Finance Management Department)

Star Asia Investment Management Co., Ltd.
Atago Green Hills Mori Tower 18F, 2-5-1, Atago, Minato-ku, Tokyo 105-6218
Tel: +81-3-5425-1340
75