"Financial Results for the 12th Fiscal Period Ended January 2022"

Star Asia Investment Corporation

上場から 5 年、 これからの 5 年

スターアジア不動産投資法人（3468）
スターアジア投資顧問株式会社

Contents

Characteristics of Star Asia Investment Corporation (SAR)

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

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 Group1.

Executive summary2

2.

Actual and forecasted distribution

5

3.

Operating results for the 12th fiscal period
ended January 2022

10

4.

Initiatives on ESG

19

5.

Progression Status of Mid-term plan

25

6.

Appendix31

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

Investment policy

Prioritized, focusedinvestment in theTokyo Area (＊１)
Investment ratio 70%
or 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"＊ 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 faciliti es, hotels and student
residences.
＊ 2 “Middle-size assets” are properties with acquisition prices of less than JPY10bn.

1１．Executive Summary2

1. Executive Summary (1)Overview of 12th Fiscal Period (ended January 31, 2022)◆ Distribution per Unit

◆ Forecasted Distributions Per Unit

Forecast 1,455 yen (108 yen)

+ 1.6% Actual Results 1,478 yen (72 yen)

※ Forecast DPU is the distribution amount announced in September 2021,※ The figure in brackets ( ) for DPU is the amount for which internal reserves have been utilized. The internal reserve utilization
amount is calculated based on the following formula:(Forecast) DPU – (forecast) net income for period per unit.
The same applies below.

◆ NAV per unit
End of 11th FP 57,994 yen

Forecasts for 13th / 14th Fiscal Periods+ 3.0%End of 12th FP 59,749 yen

13th Period JPY 1,476 / unit (79 yen)
14th Period JPY 1,476 / unit (50 yen)
➢ For so long as the effects of COVID-19
continues, our policy is to maintain
distribution levels by utilizing internal
reserves of negative goodwill.

◆ Assumptions for 13th FP and thereafter.

◆ Topics/ Operational results◼ Portfolio NOI 4,261 million yen (+1.5 % above forecast)•• By leveraging on our strength as a diversified REIT, we absorbed the strengths and weaknesses of theleasing market by asset type.
• Increase in NOI against forecast was achieved, and the incremental increased amount of NOI (excluding
temporary factors) were distributed as increased amounts.
• In the same manner, the amount of reversal of internal reserves was decreased, to be utilized to stabilize
DPU for the next and subsequent periods.

◼ NAV per unit increased by 4.7% (compared to end of 11th FP)• Growth of 3.0% NAV per unit was realized, given the unrealized gains from newly acquired properties in August
2021, as well as the increase in amount of appraisal value (compared to the preceding period) of the existing
portfolio.

•

Given that the Deepening of leasing
strategy (to further improve flexibility andagility) has succeeded, and actual results
are beginning to be seen, a gradualincrease in occupancy rates has been
assumed for offices and residence in the
13th and 14th fiscal periods.
(Please refer to the next page)For asset types other than hotels, it isanticipated that cruise mode conditions will
return from the 14th Fiscal Period.

ESG related initiatives etc. during the 12th Fiscal Period◆ ESG related initiatives◆ Incorporation into global index◼ GRESB Real Estate Assessment◼ Incorporated into FTSE EPRA/ Nareit in
Acquired 3 Star & Green Star (in FY2021)
December 2021.
◼ Properties which acquired environmental◼ Improved liquidity of investment units,certifications exceeded 38% (gross floor area basis)
expectations towards further expansion of theGoal is 50% by 2026.
investor base.
◼ A change to the calculation formula for asset◆
IssuedInvestment Corporation Bonds
management fees was decided, and the
proportion of revenue-linked fees has increased. ◼ Realized diversification of funds procurement◼ Expanded ESG-related disclosures on website.
methods and cost reduction.

◆ Executed 4th Public Offering◼ A public offering of investment units was
executed in August 2021, and properties were
newly acquired. (7 properties/ total acquisition
price: JPY12.9 billion)◼ Total asset size increased to JPY 179.6 billion.
◼ Given expansion of asset size and increase in
the number of properties, a highly diversified
portfolio with stable profitability was achieved,◼ An expansion of the investor base wasobserved.

3

1. Executive Summary (2)12th FP (ended Jan. 2022) Status / Initiatives◆ For offices and residence, the pace of increase in occupancy
rates was slower than anticipated.
◼ Background••Due to continuation of COVID-19, the declaration of emergency
was prolonged up to the end of Sept. 2021
Due to the effects of COVID-19, the supply chain was affected,
causing delays in delivery of materials for use in restoration works.

Impact on Operating Status of 13th FP◆ Achievements due to deepening of leasing strategy◼ Office✓Due to deepening of the leasing strategy, the conversion from thesituation where the exit area exceeds new contract area has
been confirmed, an increase in occupancy rates is anticipated forthe 13th FP.
12th FP: new contract area ＞exit area
13th FP: new contract area ≒ cancellation area (as of Mar. 8, 2022)
5,000㎡◼ Phenomenon<Office>• Longer periods required for decision-making by tenants, due toreasons such as postponement of property previews by persons
in charge, and postponement of relocations.
• During 12th FP, occupancy rates slightly declined: lower than theinitial plan.
<Residence>• For cancelled housing units, prolongation of time required torestore to original state.
• Due to prolongation of down time, increase in occupancy rates
has slowed down.

◆ Deepening of leasing strategy◼ Measures to improve occupancy rates✓ In quick response to leasing market trends, implemented flexible
and agile adjustments to leasing conditions (rents and free rent
periods, etc.)✓ Widely take in the needs of tenants, and search for potential
tenants by broadening the frontage, such as by flexibly
responding to the move-in schedule of tenants.
✓ Cooperate more closely with property managers, and apply
stricter administration of construction schedules for renovations(functional renewals) and works for restoration to original state:promote leasing activities by timely catching opportunities.

(Expected) exit area
退去(予定)面積(Expected)
new contract area
新規契約(予定)面積

4,000㎡
3,000㎡
2,000㎡
1,000㎡
0㎡
12FP
12期

13FP
13期

◼ Residence✓ Due to deepening of the leasing strategy, an increase in theoccupancy rate was confirmed during the 12th FP:- For 19 properties, recovered to average exceeding 95%.
✓ Further increase in occupancy rates was confirmed as of end of
Feb. 2022: - 96.9% (preliminary report basis as of Mar. 11, 2022)
98.0%
97.0%
96.0%
95.0%
94.0%
93.0%

Occupancy
稼働率
rate

92.0%

4

２．Actual and forecasted distribution5

2. Actual Distributions and Business Forecast (1)Actual distributions for FP ended January 31, 2022
◆ Distributions per unit (DPU) for the FP ended January 31, 2022 has been made by reflecting the increase amount in NOI (+1.6% above
forecast), given that portfolio NOI exceeding the initial forecast has been achieved.
◆ For the 13th and 14th fiscal periods, the policy is to maintain the distribution amount which is believed to reflect the inherent capacity (byutilizing internal reserves including negative goodwill.).

12th FP(ended Jan 2022)-Actual-13th FP(ending July 2022)-Forecast-

14th FP(ending Jan 2023)-Forecast-

1,478 yen

1,476 yen

1,476 yen

Utilization of Internal
Reserve: 79 yen

Utilization of Internal
Reserve: 50 yen+ 23 yen (1.6%) v.s. forecast

Utilization of Internal
Reserve: 72 yen≪Policy for Maintaining Distributions≫◼ During the period while the impact of
COVID-19 is continuing, a minimum
DPU amount will be set, by utilizing
internal reserves.

Maintain

1,476

yen

from 13th FP and thereafter(JPY） 1,600
1,500

36
1,400

1,300

1,200

1,100

1,455

<P/L from
Leasing
Business>
・Increase incancellation
penalties
・Decrease inleasing costs.
・Decrease inrepair costs etc.

6

29

36
37

<OtherP/L>・Increase
Tokumei
Kumiaidividend
revenues
etc.

<Internal
Reserves>
・Reserved a
portion of
the increase
1,478
in netincome.

<P/L from
Leasing
Business>
・Reduction in
temporaryrevenues.
・Increase inleasing costs.
・Increase intaxes and
dues etc.

945<Nonoperating
Expenses>・Decreasein financecosts etc.

26

26

7

<Other P/L>
・Decrease in
Tokumei Kumiai
dividend
revenues etc.

<Leasing
Business>
・Increase inoccupancy
rates

1,476

8

5

29
< Internal
Reserves >・Distributeonly fromreversal of
RTA portion

1,476

1,000

6

2. Actual Distributions and Business Forecast (2)Operational Results (Summary) for FP ended January 31, 2022 andForecast Assumptions for FP ended July 31, 2022 and FP ending January 31, 2023
◆ The pace of increase in occupancy rates for offices and residences is below assumptions due to effects of COVID-19 ‐Deepening of leasing strategy.
◆ Regarding offices and residences, there are signs of increase in occupancy rates from recent leasing trends, and therefore, a gradual increase inoccupancy rates has been assumed up to the end of the 14th fiscal period.

Actual Result of FP ended January 2022

Forecast Assumptions for FP ending July 2022
and FP ending January 2023

Office• Although increase in occupancy rates was anticipated at the beginning of the period, due tothe effects of COVID-19, increase was limited.
(End of Aug.2021:91.6% ⇒ End of Jan. 2022: 92.8%)• Deepening of leasing strategy to respond to the situation (Implement flexible and agile
adjustments to leasing conditions in response to leasing market trends)• New contracts with 9 tenants: a 5.8％ increase in amount (compared to rent levels of
former tenants) (※)◼ Due to success of deepening of the leasing strategy, occupancy rates are
expected to be in an increasing trend.
◼ During 13th FP: (Expected) new entry area ≒ (expected) exit area (as of March
8, 2022)◼ The areas for which increase in rent have been contracted (or expected)(existing 6 tenants), have been incorporated in the forecast (otherwise, rent
increases have not been anticipated at the time of contract renewal).

Retail• During 12th FP: 1 new tenant (765.53㎡) / 3 tenants left (1,279.30㎡), no surprises.
• There were 3 requests for reduction or exemption of rents due to effects of COVID-19,
which is limited (of which 1 tenant left, and requests from other 2 tenants were denied.)• There were no accrued rents during the 12th FP, and revenues remained stable(Regarding a large tenant which moved out, as it gave prenotice of termination and a new
tenant was found, the NOI increase was higher than expected.)◼ Notice of moving out has been received from 2 tenants, and it has been
assumed that there will be no new tenants after they leave (this has alreadybeen incorporated in the business forecast).
Expected cancellation area:1,501.80㎡ /1.5% of all retail facilities.
◼ Requests received for rent reduction at time of resigning of contracts⇒ under negotiation.
◼ We are currently reviewing expenses, and expect to implement cost
reductions during the 13th fiscal period.

Residence• Increasing trend in occupancy rates due to deepening of leasing strategy in accordancewith current conditions (End of Aug. 2021: 94.1% ⇒ End of Jan. 2022：95.1%)• Recovery in occupancy rates are seen for single-type residences, due to detailed
adjustments of rent conditions. (End of Aug. 2021: 94.1% ⇒ End of Feb. 2022: 95.1%(on preliminary report basis)• Of the 168 units of new contracts, rents were increased for 66 housing units6(compared to rents for former tenants)◼ For family-type residences, a slight increase in occupancy rates are anticipated
up to the end of the 14th fiscal period / rent levels are assumed to remain at thesame levels.
◼ For single-type residences, through more flexible adjustments of leasing terms,
there are signs that occupancy rates will increase/ increase in occupancy rateare expected.

Logistics• Of the 2 tenants which were expected to renew or re-sign lease contracts during the 12th FP,
for 1 tenant rents amounts have already been increased, and for the other tenant thelease has been renewed under the same conditions as before.
• For tenants expected to re-sign during the 13th FP, rent increase has already been
agreed.

◼ Revenues are expected to continue to be stable.
◼ For tenants whose contracts are subject to renewal during the 13th FP other than
the tenant mentioned at the left, renewal under the same conditions as before
has been assumed.
◼ Prepare for re-signing and renewal of lease contracts in and after the 15th FP.

• “KOKO HOTEL Osaka Namba” has started operations in December 2021.
• For hotels other than the above, fixed rents are being received from the tenants.
• The impact of COVID-19 is continuing, and there are some hotels who are continuing
closing periods.

◼ Request for rent reduction has been received from 1 tenant/ currently being
negotiated.
◼ Rent revenue from “KOKO HOTEL Osaka Namba” has been set at zero.
◼ For hotels other than the above-mentioned hotel, it is assumed that fixed rents
will be received as agreed.

Hotel※There are 9 new tenants which entered during the 12th FP, however, the 1 tenant with whom short-term lease has been signed is excluded for the purpose of calculating the increase percentage.

7

2. Actual and forecasted distribution (3)Factors for increase/decrease compared with forecast/actual results for the 12FP
◆ Achieved increase in NOI amounts due to increase in rent revenues of held properties and focusing on cost reductions.
◆ Of the increase in NOI amounts excluding unexpected fee revenues from original state restoration is planned to be distributed in addition to the initial
forecast amount. . (DPU (vs forecast) ＋23yen/unit、increase by1.6％）(Unit: million yen)
12 FP (ended Jan.
2022) forecast*

Lease business revenue
Office rent
Retail rent
Residence rent
Logistics rent
Hotel rent
Other
Expenses related to rent business(Depreciation is excluded)
NOI
Depreciation
Rent revenues/expenses
Mezzanine
TK distribution
SGA
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Income before income taxes
taxes
Net income
Cash distribution per unit
FFO per unit
Balance of internal reserves(Reference) Net income per unit
(Yen per unit)

12FP (ended Jan.
2022) ActualComparison with
forecast

Factors for the increase/decrease

0.3% ＜Revenues from leasing business＞-1.3% Office ： Decline in occupancy rates due to prolongation of down
time.
0.5%
-1.9% Residence ： Decline in occupancy rates due to prolongation of
0.0% down time.

5,873
1,926
838
1,173
910
425
598

5,890
1,900
842
1,152
910
425
660

17
△ 25

1,674

1,629

△ 44

4,199
684
3,514
24
550
2,988
576
2,412
2,412
0
2,411
1,455 yen
1,730 yen
8,903

4,261
682
3,579
22
46
560
3,087
1
571
2,517
2,517
0
2,516
1,478 yen
1,787 yen
8,967

62
△1
64
△1
46
9
99
1
△4
105
105
105
23 yen57 yen64

0.0%＜Other＞
10.2%
Penalty charge revenue +29.5million yen-2.7% Renewal fee revenue +12.0million yen
Key money revenue +5.8million yen
1.5% Original state restoration fee revenue +4.7million yen-0.3%
1.8% <Expenses of leasing business>
Repair costs △17million yen-6.3%
Leasing costs △16million yen- Decrease in building management costs△15million yen
1.8%
3.3% <TK distribution>
Increase in dividends due to sale of property held by invested entity.
-0.8%
4.4%
4.4%
0.0%
4.4%
1.6%
3.3%
0.7%

1,347 yen

1,406 yen

59 yen

4.4%

4
△ 21
0
61

（*）Announced in 11th FP closing of accounting report (September 14, 2021)

82. Actual and forecasted distribution (4)Forecast of business results for the 13FP ending July 2022 / the 14FP ending January 2023
◆ Seven new properties acquired through the public offering executed in August 2021. The newly acquired properties expected to fully
contribute to the FP ending July 2022.
◆ Within the existing held portfolio, a gradual recovery of occupancy rates is anticipated mainly for office properties in 14FP
(Unit: million yen)

Lease business revenue
Office rent
Retail rent
Residence rent
Logistics rent
Hotel rent
Other
Expenses related to rent business(Depreciation is excluded)
NOI
Depreciation
Rent revenues/expenses
Mezzanine
TK distribution
SGA
Operating income
Non-operating income
Non-operating expenses
Ordinary income
Income before income taxes
Taxes
Net income
Cash distribution per unit

FFO per unit
Balance of internal reserves(Reference) Net income perunit (Yen per unit)

12 FP (ended
Jan. 2022)
Actual(Ａ)

Forecast forthe 13 FP
ending Jul
2022 (B)

5,890
1,900
842
1,152
910
425
660

5,899
1,971
849
1,210
910
424
532

8
71
6
58
0
△1
△ 127

1,629

1,688

58

4,261
682
3,579
22
46
560
3,087
1
571
2,517
2,517
0
2,516
1,478 yen
1,787 yen

4,211
699
3,511
24
543
2,992
491
2,500
2,500
0
2,499
1,476 yen
1,787 yen

8,967

8,826

△ 141

1,406 yen

1,397 yen△9
yen

Increase/decrease(B-A)

Major factors for theincrease/decrease

0.1% Increase / decrease factors for
13FP (compared to last forecast)
3.8%
0.8% <Office>5.1% Increase in occupancy rates<Residence>
0.1% Increase in occupancy rates-0.4% ／Increase in number of days inoperation of the 4 properties-19.3%
acquired in August 2021.

3.6% <Other>

Temporary reduction in income△ 50-1.2% portion
16
2.5%<Expenses related to rent
△ 67
-1.9% business>
1
5.7% Increase in taxes (fixed assetstax) +31million yen△ 46 -100.0%△ 16-3.0% Utility expenses△38million yen
△ 95
-3.1%
△ 1 -100.0% Leasing expenses+28million yen△ 79 -14.0%
△ 17
-0.7%
Repair expenses
△ 17
-0.7%
+25million yen
0.0%<TK distribution>△ 17-0.7% Investment balance dissolved-2 yen-0.1% due to redemption
0 yen
0.0% <Non-operating expenses >decrease in expenses due to-1.6% refinancing-0.6%

Forecast for the
Increase/decrease
14FP ending(C-B)
Jan 2023(C)

5,970
2,010
838
1,224
913
419
563

71
38
△ 10
14
2
△5
30

1,695

7

4,275
64
715
16
3,559
47
24
0
552
8
3,031
38
△ 13
478
2,552
52
2,552
52
0
2,552
52
1,476 yen 0 yen
1,826 yen 39 yen

1.2% Increase/ decrease factors for
14FP (compared to forecast for
2.0% the 13 FP)-1.2%
1.2% <Office>
Increase in occupancy rates
0.3% <Residence>-1.2% Increase in occupancy rates<Other>5.8%
0.5%

Utility expenses+34million yen

1.5% <Expenses related to rent
2.4% business>
Leasing expenses
1.4%△32million yen-0.3%
Utility expenses＋22million yen
1.6%
1.3% <Non-operating expenses>
decrease in expenses due to- refinancing
-2.8%
2.1%
2.1%
0.0%
2.1%
0.0%
2.2%

△ 88

-1.0%

1,426 yen 29 yen

2.1%

8,737

Major factors for theincrease/decrease

9３．Operating results for the 12th fiscal
period ended January 2022

10

３．Operating results for the 12th fiscal period ended January 2022 (1)- Occupancy rate status ◆ In offices and single-type housing, downtime has continued to increase from the previous fiscal year. However, the portfolio as a whole
maintained an occupancy rate of 96% or more (based on contract area) during the period. Confirmed upward trend of occupancy rate toward
the end of December.
100.0%

Hotel, 100.0%

99.0%

Retail, 99.4%

98.0%

Logistics, 97.8%

97.0%

Total, 96.7%

96.0%
95.0%

オフィス
OfficeResidence, 95.1%

商業施設
Retail
94.0%

Residence
レジデンス

93.0%

Logistics
ロジスティクス

Hotel 1 tenant leave

Office, 92.8%

Hotel
ホテル
92.0%

Total
全体
State of
Emergency

91.0%

9FP

90.0%

10FP

Feb

Mar

Apr

May

Jun

Jul

2020

2020

2020

2020

2020

2020 2020 2020

9FP
(Jul 2020)

10FP(Jan 2021)

Aug

Sep

Oct

Nov

11FP
Dec

Jan

Feb

2020 2020 2020 2021 2021

11FP
(Jul 2021)

State of
Emergency

State of
Emergency

State of
Emergency

Mar

Apr

12FP

May

Jun

Jul

Aug

Sep

Oct

Nov

2021

2021 2021

2021 2021 2021 2021 2021 2021 2021

Dec

Jan
2022

12FP
Aug 2021

Sep 2021

Oct 2021

Nov 2021

Dec 2021

Jan 2022

Office

98.6%

95.8%

93.1%

91.6%

91.6%

91.9%

91.9%

92.0%

92.8%

Retail

-

98.8%

98.8%

97.6%

97.6%

99.5%

99.5%

99.4%

99.4%

Residence

95.4%

95.7%

94.4%

94.1%

94.8%

94.8%

94.7%

94.9%

95.1%

Logistics

97.8%

97.8%

97.8%

97.8%

97.8%

97.8%

97.8%

97.8%

97.8%

Hotel

91.3%

91.3%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

Total

97.1%

96.9%

96.6%

95.9%

96.0%

96.5%

96.4%

96.5%

96.7% 11

3. Operating results for the 12th fiscal period ended January 2022 (2)- Office - Status of change in tenant as of the end of the 12FP
Operating result

Status of change in tenant as of the end of the 12FP
Number oftenants＜Actual Result of 12FP＞◼ Entry and exit of tenants: New contract area (3,280.49㎡) ＞ exited area
(3,207.83㎡)＜New Contract＞

Area(㎡)

93,280.49

Rent up

6

2,668.34 Monthly rent 5.8% up

Same rent

1

49.43

＜Forecast Assumptions for 13FP ＞

Rent down

2

562.72 Acquiring tenants with market rent

◼ Due to deepening of the leasing strategy, it is anticipated that the increasing
trend of occupancy rates will continue up to the end of the 12 th FP＜Renewal＞

51

Rent up(※)

3

Same rent

48

Rent down0◼ Attracted new tenants: 9 tenants (An average rent increase of 5.8% compared tobefore)（※） Calculated by excluding short-term leases◼ As a result of negotiations with existing tenants, it is expected that rent increases
will be realized in the 13th FP.
7 tenants already signed or expected to sign contracts/ 9,362.44㎡ / Averageincrease of 11.4%◼ At Urban Center Kanda Tsukasamachi, large-scale renewal works wereconducted upon exiting of a tenant. – Confirm improvement of occupancy rates
in the 13th FP.

※

517.70 Monthly rent 19.6% up
11,313.44
0.00 No tenants with reduced rents

Includes increased amounts in the middle of the contract period＜Leaving＞

Contracted occupancy rate / effective occupancy rate
97%

11,831.14

7.

3,207.83

Contract Rent Period of Office Portfolio
8,000 ㎡
Area of Move in
入居面積

Effective occupancy

95%

Contract occupancy

実質稼働率

契約稼働率

rate

rate

Area of Move out
退去面積6,000 ㎡※（ ） Number of tenants

4,000 ㎡
2,000 ㎡
93%

0,000 ㎡
91%

(7)

(19)

(7)

(8)

(14)

(9)

(10)

(13)

(7)

(13)

(13)

(7)

-2,000 ㎡-4,000 ㎡

89%-6,000 ㎡-8,000 ㎡

7FP
8FP
9FP
10FP
11FP
12FP
第10期
第11期
第12期
第7期
第8期
第9期
Jul 2019
Jan 2020
Jul 2020
Jan 2021
Jul 2021
Jan 2022
2021年1月期
2021年7月期
2022年1月期
2019年7月期
2020年1月期
2020年7月期

12

３．Operating results for the 12th fiscal period ended January 2022 (3)Change in tenants in the 12FP (＊)

Urban Center Kanda Tsukasamachi（Case study）＜Rent per Tsubo＞＜Diversification status of rent gap＞

100.0%
90.0%

10% or more,
37.5%

Rent gap exists at
355 yen/tb（2.6％） of
the total■ Large scale renewal works / entrance

65.3%

80.0%
70.0%
60.0%

0% to less than
10%, 28.7%¥14,219 /坪

Rent gap exists at
66.2％ （based onfloor area) of the total

50.0%
40.0%

after

before

43.8%

30.0%

13,864
yen/tb20.0%

Less than 0%,
33.8%

10.0%
Contracted
Rent
契約賃料単価
Unit Price

Nearby Market
周辺相場賃料単価◼ Viewing exiting of the tenant as a good opportunity, large-scale renewal works
were conducted, and the grade image was enhanced.
◼ Anticipated to attract new tenants, and improve occupancy rates.

0.0%

Rent Unit Price(＊ ) 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 theperiod. With respect to Amusement Media Gakuin Honkan/Shinkan, the net rentable area is used for the calculation.

Details of increase and decrease in rents for the 12th FP to 13th FP.

Contract Rent Period of Office Portfolio
25,000㎡

20,000㎡

Rent gap
レントギャップ0%未満
less than 0%56

Rent gap 0% to
レントギャップ0%以上10%未満
less than 10%＜New Contract 12FP（※）＞※Only new tenants for whom rents have change from the former tenant have been extracted.
Rent
gap
レントギャップ10%以上
10% or more

70
55

15,000㎡

Property Name

Numberoftenants

Increase –decrease rate

Honmachibashi Tower

1＋32.7 ％

Higashi-Kobe Center Building2＋22.5 ％

Minami-Azabu Shibuya Building1＋7.1 ％

Urban Center Kanda Tsukasamachi

1＋6.3 ％NK BLDG.

1△13.0 ％

Hiei-Kudan BLDG.

1△2.9 ％

remarks

New contracts in 12th FP: 9 tenants
Average increase/decrease rate: ＋5.8％

60

10,000㎡
135,000㎡

Excluding 1 tenant with a short-term lease,
the average of 8 tenants including the 1tenant described at the left for which there
was no change in rents from before.

＜Existing tenants for which rents are expected to increase in the 13th FP (already contracted or agreed)＞

0㎡
第13期
2022年1月期
13FP
Jul 2022

第14期
2022年7月期
14FP
Jan 2023

第15期
2023年1月期
15FP
Jul 2023

第16期
第17期以降2023年7月期
2024年1月期以降
16FP
17FP
Jan 2024
or after

Asahi Building

1＋20.0 ％

Higashi-Kobe Center Building

1＋19.8 ％

Honmachibashi Tower

1＋10.6 ％

Hakata – eki East Place3＋10.1 ％

Average increase rate of the 6 tenants
mentioned to the left:
11.4%

13

3. Operating results for the 12th fiscal period ended January 2022 (４)- Retail -Management strategies of retail facilities

Tenants Breakdown by Business Type （as of end of January 2022）◆ Policy to approach suburban type retail facilities ◆ Forecast Assumptions for 13FP and 14FP
◼ Maintain the policy to sell suburban type retailfacilities－ Timing of sale is not decided◼ Upon day-to-day operations, as with other held
assets, maximization of profits and optimization of
expenses will be pursued.

◆ Initiatives policy for the near term
◼ Aim for value increase, by pursuing
maximization of NOI, and improvement of
profitability.
◼ Added senior members with strong
experience and track record in retail facility
operations at the asset managementcompany and strengthened the organization.

<Revenue decrease factors>◼ 2 cancellations expected during 13th FP (916.28㎡)◼ Of the tenants whose contracts will expire during
the 13th FP, 3 tenants (1,056.02㎡) have requested
a reduction in rents.
- currently under negotiation＜Revenue increase factors>◼ Cost reductions are expected to be achieved,
based on proposals from the members listed at theleft and the cooperation from the sub-sponsor
Nippon Kanzai Group.
◼ Reduction amount: More than 12,000 thousand yen
per year◼ For 1 property in the suburbs, given that an existing
tenant is moving within the facility, we are
expecting to attract a new tenant with highcustomer attraction capacity (a large homefurnishing company) for the relevant space.

Tenants Breakdown by Business TypeArea (㎡）

Ratio

Number ofleaseagreements

Daily necessities (Food)

39,782.16

6

Daily necessities (Clothing)

7,889.86

11

Daily necessities (Others)

18,115.16

Other product sales

13,359.82

14168.602

Clinic82.1%

8Suburbs

Urban

Private tutoring schools

84.39

0.1%

1

Child care and day care

2,466.13

2.6%

1Sports clubs

1,302.31

1.3%

12

Food and beverage

8,622,82

8.9%

3Entertainment andamusement

3,360.44

3.48%

17

Entertainment andamusement

1,497.45

1.5%

196,649.14

100.0 ％

76

Total

Asset management which contributes to the revitalization of the local community
Making efforts to revitalize the local community, by cooperating with other business operators within the region and the municipal government,
and facilitating communication with the neighboring society.
■In cooperation with the Japan Football Association and soccer players
in J-League, we provided landsites as ground for holding soccer schools
targeting small children.

【 Suroy Mall Chikushino（multipurpose ground） 】■In cooperation with the local municipality, in order to foster a sense ofunity with the regional society, provide resting space and spectator
seatingduring the period of the“Danjiri Festival”.
Contributed to vitalizationof the local region, as
LAPARK KISHIWADA isfacing the main street of“Danjiri Festival” of Haruki
district.

【La Park Kishiwada】■In cooperation with municipalities, provide sites as venues for earlyvoting of elections.

【La Park Kishiwada】

14

3. Operating results for the 12th fiscal period ended January 2022 (5)- Residence ◆◆Given the prolongation of the time required for original state restoration works due to confusion of the supply chain, the increase in occupancy
rates has been slower than assumed/ on the other hand, due to deepening of the leasing strategy, occupancy rates are recovering.
Occupancy rates as of the end of Jan. 2022: 95.1% ⇒ Occupancy rates as of the end of Feb. 2022: 96.9％ (on preliminary report basis)

Management strategies of residence

Transition of occupancy rates＜12FP Actual＞

State of Emergency 1

100.0%

95.9%◼ Entering and leaving of tenants ：Area move in（8,042.51㎡）＞Aria move out（6,500.29㎡）
95.0%◼ Entering and leaving, Rent Fee：Total rent（monthly amount） ＋573,700 yen

95.1%
Less than 30㎡

90.0%

30㎡ or more

Familytype
ファミリータイプ

Number oftenants

Total monthly
amountNumber oftenants

Total monthly
amount85.0%

New contract

48△265,400 yen

120＋385,600 yen

80.0%

Renewal31△ 5,000 yen

216＋458,500 yen

Cancellation

49

83

－

※

8FP

9FP

10FP

11FP

12FP

For newly entering tenants, only those housing units for which the former tenant’ rent is known arecompared, and the difference is aggregated.

Transition of new contracts and cancellations of single-type residences
Cancellation
解約件数
numberof tenantsNew
contract
新規面積
area

Cancellation
解約面積
area

1800 ㎡

1400 ㎡

90件

70件
60件

1000 ㎡

50件

800 ㎡

40件

600 ㎡

30件

400 ㎡

20件

200 ㎡

10件

8FP
8期
Jan
2020
2020/1

9FP
9期
Jul
2020
2020/7

10FP
10期
Jan2021/1
2021

2020年7月

11FP
11期
Jul2021/7
2021※singles-type housing : UP Namba, UP Gokokuji, UP Koenji

12FP
12期
Jan
2022
2022/1

UP
Numba
UP難波
UP
Gokokuji
UP護国寺

95.0%

80件

1200 ㎡

7FP
7期
Jul2019/7
2019

Transition of occupancy rates by individual properties.
100.0%New contract
新規件数
number of tenants◼ Since the 9th FP, the cancellation area had
continued to exceed the new contract area,
however, this trend has reversed in the 12th FP.

1600 ㎡0㎡

81.0%

SingleType
シングルタイプ

76.4%

75.0%

－

Total
全体

UP
Koenji
UP高円寺

90.0%

◼ Average occupancy rates for 3 properties (single type)
81.0% (as of the end of Jan. 2022)⇒ 91.2％(on preliminary report basis/ as of the end of Feb. 2022)
91.7%

85.0%
80.0%

80.0%

75.0%

74.9%

66.8%

70.0%

73.7%

0件
65.0%
2021年8月
Aug
2021

2021年9月
Sep
2021

2021年10月
Oct 2021

2021年11月
Nov 2021

2021年12月
Dec 2021

2022年1月
Jan 202215

3. Operating results for the 12th fiscal period ended January 2022 (6)- Logistics / Hotels -Logistics Diversification of Current Contract Renewal Period (based on floor area)
12FP (ending Jan. 2022)
Contract period expired for 2 tenant（㎡）
70,000 ㎡◼ For 1 tenant, rent increase has been
agreed, and a new contract has beensigned under a fixed-term building lease.
◼ For the remaining tenant, lease contract
renewed under the same terms as before

60,000 ㎡

13FP (ending July 2022)
Contract period expired for 3 tenant◼ For 1 tenant, rent increase has been
agreed.
◼ For the remaining tenant, lease contract
renewed under the same terms as before※（ ）Number of renewal tenants（5）

50,000 ㎡
40,000 ㎡（3）（2）

30,000 ㎡
20,000 ㎡（2）

10,000 ㎡
0,000 ㎡
13期
13FP
Jul 2022
2022年7月期

14期
14FP
Jan 2023
2023年1月期

15期
15FP
Jul 2023
2023年7月期

16期
16FP
Jan 2024
2024年1月期

17期
17FP
2024年7月期
Jul 2024

18期以降
18FP
or after
2024年8月以降

Hotel Transition of gross rent amounts (index)/ rent systems/ causes of rent increases and decreases<Actual results for 12FP and financial
performance forecast assumptions>

120.0◼ In the 12FP (ended Jan 2022), fixed
rents were received (none in arrears)

100.0◼ ”KOKO HOTEL Osaka Namba” openedin mid-December 2021. No rent
revenues have been assumed from thehotel during 13FP and 14FP.

80.0◼ １hotel has requested reduction in rent
– under negotiation.

40.0◼ From 6 hotels other than the 2
mentioned above, it is assumed that
fixed rents will be received as agreed
with the tenants.

20.0

固定賃料比率
Fixed
rent
8.2

1.9

Floating
rent
変動賃料比率

Forecast
■予想

0.4

60.0

0.0

100.0

101.2

95.9

7FP
第7期
Jul
2019
2019年7月期
Actual

8FP
第8期
Jan
2020
2020年1月期
Actual9FP
Jul第9期
2020
2020年7月期
Actual

91.5

91.7

92.1

91.7

90.6

11FP
12FP
14FP
10FP
13FP
第10期
第11期
第12期
第13期
第14期
Jul
2021
Jan 2022
Jan 2023
Jan
2021
Jul 2022
2021年1月期
2021年7月期
2022年1月期
2022年7月期
2023年1月期
ActualActualForecast
ActualForecast※The index has been prepared by calculating fixed rent on the date of Jul 201916

3. Operating results for the 12th fiscal period ended January 2022 (7)- Financial standing –◆ Through new borrowings and refinancings, average term of borrowings has become longer, and the ratio of fixed interest borrowings has
increased.
◆ Issued investment corporation bonds in order to diversify funding, prolong repayment dates, and fix interest rates based on our finance strategy.

Main financial indicators (※1）

Bank formation

11FP
July 2021

12FP
Jan 2022

LTV

46.0 %

46.4 %

Interest-- bearing debt balance

82,440 million yen

89,640 million yen

Long-term debt ratio

97.4 %

100.0 %

Average remaining period tomaturity

2.3 years

Average borrowing period

4.7 years

5.0 years

Average interest rate (※2)

0.75 %

0.76 %

Fixed interest rate ratio

81.3 %

89.5 %

Lender

Ratio

Sumitomo Mitsui
BankingMizuho Bank

3.0 years(※1) This describes the status including investment corporation bonds.(※2) The interest rates shown take into
consideration the effects of interest rate swaps (fixing of interest rates).

Lender変動

1.7%

14.7% Corporation Bonds

1.1%

Sumitomo Mitsui
Trust Bank

Mizuho Trust &11.1%
Banking

0.9%

Aozora Bank

9.8% The Kiyo Bank, Ltd.

0.6%

89,640Resona Bank

5.6% San-ju San Bank

0.6%

million yen

The Nishi-Nippon
City Bank

2.8%

Minato BankThe Dai-ichi Life
Insurance
Fukoku Mutual Life
2.2% Insurance
Company

融資利負債
Total

0.6%
0.6%

Credit Ratings
Japan Credit Rating Agency, Ltd. (“JCR”)

Long-term Issuer RatingA (Stable)

Rating and Investment Information, Inc. (R&I)

Issuer Rating
A－ (Stable)(million yen）

固定

1.9%

Shinsei Bank

Diversification of repayment dates
14,000Ratio

The Bank of
26.8%
Fukuoka
The Bank of
19.2% Yokohama,Ltd.

投資法人債

12,00010,0008,000
6,000

11,850
9,790

9,750
5,600

0

4,840

49.0%

11,215

48.0%

8,500

4,000
2,000

Transition of LTV

1,000

7,300
3,785

7,050

5,960
3,000

47.0%
46.0%
45.0%

46.4%

13FP
19FP 20FP 21期
21FP 22FP 23期
23FP 24FP 25期
25FP 26FP 44.0%
13期 14FP 15FP
15期 16FP 17FP
17期 18FP 19期(2022/7）(2023/7）(2024/1)(2024/7）(2026/7）(2027/7）(2028/7）(2022/7)(2023/1) (2023/7)(2024/7) (2025/1)(2025/7）(2025/7) (2026/1)(2026/7) (2027/1)(2027/7) (2028/1)(2028/7) (2029/1)43.0%
1FP
第1期

2FP
第2期

3FP
第3期

4FP
第4期

5FP
第5期

6FP
第6期

7FP
第7期

8FP
第8期

9FP 第10期
10FP 第11期
11FP 第12期
12FP
第9期

3. Operating results for the 12th fiscal period ended January 2022 (8)- Capex Control –◆ Led by the Sustainability Promotion Division, appropriate control of Capex/ secure free cashflow in cooperation with the Finance Division.
◆ Reduce costs by reducing energy consumption, by reducing economic burden and also by introducing highly efficient equipment.
- Contribute to internal growth.
•

Capex Management•

Centrally manage budget planning and progress on
Capex centered on the Sustainability Promotion
Division
Consider moving the plan forward depending on thebudget exhaustion status and budget reduction status.

•(Unit: thousand yen)

Capex予算
Capex
Forecast

800,000

Capex実績
Capex
ActualDepreciation
cost (Actual)
減価償却費（実績／予想）
Depreciation
cost (Forecast)
減価償却費（予想）

700,000
600,000■Capital Expenditures during the 12th fiscal period

500,000

Higashi Kobe Center Building/Automatic fire
alarm facility renewal work

51
million yen

400,000

Urban Center
Kanda Tsukasamachi/Phase 1 renewal
work

44
million yen

300,000■Schedule of Capital Expenditures for the 13th fiscal period
Takadanobaba Access/Outdoor-air
processing unit renewal work

36
million yen

Urban Center Kanda
Tsukasamachi/Common area renewal work
(3F, 6F and 7F)

33
million yen

200,000

100,000
0
10FP
第10期
Jan 2021
2021年1月期

11FP
第11期
Jul 2021
2021年７月期

12FP
第12期
Jan 2022
2022年1月期

13FP
第13期
Jul 2022
2022年7月期

14FP
第14期
Jan 2023
2023年1月期(Unit: thousand yen)

10FP
Jan 2021

11FP
Jul 2021

12FP
Jan 2022

13FP
Jul 2022

14FP
Jan 2023

Depreciation cost

628,354

633,013682,245

699,146

715,756

Capex Forecast

552,841

453,448507,750

520,543

563,568

Capex Actual

331,901

363,439424,722－－

Capex Budget reduction rate

40.0%

19.8%

16.4%

－

－

Capex ratio （Capex Actual／Depreciation cost）

52.8%

57.4%

62.3%

－

－

181,949

220,204

181,998

207,877

207,041

53

53

60

60

60

Repair cost（Actual／Forecast）
Number of Properties

18

４．Initiatives on ESG

19

４. Initiatives on ESG (1)E (Environment) related numerical goals and ESG promotion system◆ As a part of ESG related initiatives, participated in the 2021 GRESB Real Estate Assessment, and acquired 3-Star / Green-Star.

◆ In order to further enhance ESG related initiatives, further strengthen cooperation with the sub-sponsors (Nippon Kanzai and Tokyo CapitalManagement).

ESG promotion system<ESG Policy> introduction Our Company, as a member of the Star Asia Group, shares its
Investment Philosophy and Guiding Principles. Furthermore, as the asset management company
for Star Asia Investment Corporation, we engage in the real estate investment managementbusiness while giving consideration to the environment, society, and governance (hereinafter,
collectively referred to as “ESG”) in order to enhance corporate value and exert comprehensivecompetitiveness while pursuing long-term sustainability and recognizing the role Star Asia
Investment Corporation has been given in society in accordance with our basic philosophy of"Client First".

ESG Policy
1

Action towards Climate Change

2Consideration towards Resource Circulation, Water Use, and Biodiversity

3

Pursuit of Health, Safety, and well-being

4

Securing and Developing Human Capital

5

Stakeholder Engagement

6

Establishing and Organizing a Governance System◼ The first Participation in GRESB Real Estate Assessment
received a “3 Star” rating

In the 2021 GRESB Real Estate
Assessment, “SAR” received a “3 Star”
rating under GRESB’s 5-grade global
rating which is based on the GRESB
Overall Score.
It also received a “Green Star”
designation by achieving highperformance in both “Management
Component” that evaluates policies andorganizational structure for ESG
promotion, and “Performance
Component” that assesses
environmental performance and tenant◼ The Asset Manager’s ESG promotion system centered on the Sustainability
Promotion Division (Primarily involving E (Environment) matters)
The Asset Manager’s
Sustainability
Promotion Division
Executive officer in chargeof sustainability
General Manager of
Sustainability
Tetsuya Makino■ESG initiatives• Setting of goals primarily focused on
E (Environment), process
management, and result verification• Participation in GRESB Real Estate
Assessment, and acquired 3-Star■Optimization of capital expendituresand repairs expenses• Examination of capital expendituresand repair expenses• Selection of equipment and materials
with consideration for impact onrevenue pursuant to ESG Policy andSustainable purchase policy

Nippon Kanzai(Sub sponsor)
Supports SAR to achieve numericaltargets (provides advice related todeveloping various data and measures toreduce environmental burdens)<E (Environment) related support>■ New Business & Corporate Branding
Dept. Institution with certification for
CASBEE• Environment-related consulting
services■ East Japan Engineering
Management Center■ West Japan Engineering
Management Center• Energy-related services• Environmental assessment services

Tokyo Capital Management (Sub sponsor)
After the Merger, Tokyo Capital Management (TCM) provides one-stop
service for asset management + property management
TCM helps developing long-term repair plans for SAR’s portfolio assets together
with Nippon Kanzai

Aim to achieve E (Environment) related goals20

４. Initiatives on ESG (2)E (Environment） related Numerical Goals and their Achievement Status◆ Although the stagnation of economic activities due to COVID- 19 is a factor, both GHG emissions and energy consumption were reduced.
◆ We will aim for continued reduction by considering introducing highly efficient equipment and low carbon equipment at times of facilities
renovation and renewal.

E (Environment) Related Numerical Objectives and Actual Performance
GHG

Unit

GHG emissions

t-CO2

Scope 1

t-CO2

Scope 2t-CO2

GHG emissions intensity
Reduction rate (intensity)

t-CO2/㎡

Base year（2019）
23,154.05

2020
ActualTarget Year
(2030)

16,804.50-

1,968.71

1,129.44-

21,185.34

15,675.06-

0.057120.04057

GHG emissions intensity(t-CO2/㎡)
0.06000

0.051400.05000-▲ 29.0%▲ 10.0%

Energy Consumption

Unit

Base year（2019）

2020
ActualTarget Year
(2030)

0.02000

Crude oil equivalent usage amountkL

11,220.81

9,156.34-

0.00000

Crude oil equivalent usage per unit

kL/㎡

0.02768

0.022100.02491

Water Resources%-▲ 20.1%▲ 10.0%

Unit

Base year(2019)

2020
ActualTarget Year
(2030)

Clean water usage㎥

329,687.35

220,847.18

Clean water usage intensity㎥/㎡

0.81330.5331≦ 0.8133

Reduction rate％-

▲ 34.4%

±0%

Waste

Unit

Base year(2019)

2020
ActualTarget Year
(2030)

Reduction rate: 29.0%
0.057120.04000%

Reduction rate

Goal: By year 2030, reduce by 10% from base year.

0.04057

0.03000

0.0100020192019年度(Base year)（基準年）

Energy consumption intensity
Goal: By year 2030, reduce by 10% from base year
(kL/㎡)

0.03000
0.02500
0.02000

Waste emissionsｔ

2,693.27

1,656.50-

Coverage rate

%

69.1%

65.1%

-

Waste emissions intensity

t/㎡

9.61

6.14

Reduction rate%-

▲ 36.1%2020
2020年度Reduction rate: 20.1%
0.02768
0.022100.01500
0.01000≦ 9.61±0%

The calculation year is from April to March of the following year.
The base year is calculated based on managed assets for full year and with 100% coverage rate.
(including the former Sakura Sogo REIT).
GHG is calculated based on market standards.
The intensity denominator uses the total area taking into account the number of months in operation.
The reduction rate is the ratio compared to the base year.

0.00500
0.0000020192019年度(Base year)

2020
2020年度（基準年）

21

4. Initiatives on ESG (3)Initiatives for E (Environment) and S (Society)◆ Environmental certifications have been obtained for 11 properties (DBJ Green Building certification (see Note 1) and BELS (see Note 2)). The goal has
been set to acquire certifications for 50% by 2026.
◆ As initiatives concerning S (=Society), it is planned to conduct a tenant satisfaction survey in broader scope, and consider reflecting theresults obtained to management and operations.

Initiatives for E (Environment)

Signing of green lease contracts (Note 3)◆ Signing of green lease contracts )◆ Received environmental certification

Received in
12FP

2 properties

As of the endof 12FP

11 properties

38.3 ％

Baraki Logistics

Logistics

12,471.50 ㎡

Honmachibashi Tower

Office15,407.83 ㎡

La Park Kishiwada

Retail

65,663.02 ㎡

Urban Park Tokiwadai
Koen

Residence

15,708.08 ㎡

Urban Park Mitsuike Koen

Residence

10,918.37 ㎡

Iwatsuki Logistics

Logistics

29,729.72 ㎡

Seishin Building

Office7,624.66 ㎡

Seiyu Minakuchi

Retail31,829.71 ㎡

Urban Park Daikanyama

Residence

8,261.29 ㎡★★★

Urban Center Hakata

Office3,566.56 ㎡★★

Urban Park
Miyamaedaira(note●)

Residence

2,039.17 ㎡

★★

Total

Goals for2026

◼ Established policy for green lease agreement and added green leaseclauses for 15 office tenants, 5 retail tenants, and one logistics tenants◼ SAR plans to add the same clause to other properties

Percentage of total floor area

Asset type

★

BELS

1.1 ％

Property name
★★★

DBJ
green
building
certificationPercentage of total floor area

Percentage of total floor area

Total floor area

203,219.91 ㎡

50.0

47

tenants

Total lending area

24,392.57㎡

Initiatives for S (Society)◆ Initiatives for employees◼ Diversity / inclusion (one out of four directors is female)◼ Employee satisfaction surveys◼ Introduced various systems in order to care for the health of employees• Promotion of teleworking and staggered commuting, superflex• Maternity leave, childcare leave, nursing care leave, and reduced
working hours◆ Human Rights Week posters were put up on message boards■During the “Human Rights Week” prescribed by the human rights
protection organization of the Ministry of Legal Affairs, Human Rights
Week posters were put up on message boards of owned properties.
Awareness-raising activities were held in order to disseminate andraise awareness towards respect for human rights.

◆ Tenants satisfaction surveys％

Tenant satisfaction surveys are conducted periodically towards
tenants of owned properties. Based on the results of the survey,
measures to improve operations and management are considered.

22

4. Initiatives on ESG (4)GovernanceSame boat investment

Changes to the Calculation Formula for Asset Management Fees

◼ Aligning the interests of the Sponsor Group with those of the unitholders
by holding 12.2% of the investment units of the Sponsor Group◼ Members of the Asset Manager also hold investment units◼ Change the calculation formula for asset management fees, with the aim to
conform with the interests of unit investors (October 2021 resolution of thegeneral meeting of unitholders)◼ The rates on asset balances will be explicitly reduced, and the link toincome from the managed assets to be increased.

Management team of the Asset Manager (as of January 31, 2022)◼ Hold SAR’s units through the employee unit purchase plan

◼ High commitment (Four officers hold 935 units in total)◼ Akiko Kanno, Director and General Manager of the Finance Management
Department, was approved as SAR’s substitute executive officer at the
October 2021 unitholders’ meeting

Before the change

After the ChangeManagement
fees I

Total valuation amount of managed
assets x 0.3% (upper limit)

Total valuation amount of managed
assets x 0.2% (upper limit)

Management
fees II

Rate capped at DPU before deduction ofManagement Fees II x NOI
x 0.002% (upper limit)

NOI × 7.5% (upper limit)＜Management team of the Asset Manager＞

Decision-making process◼ Implement decision-making with high transparency, compliant with laws and regulations◼ Maintain high ethical standards and execute operations as a steward of investors’ funds

Department
ProposalStar Asia Group(as of January 31, 2022)◼ Star Asia Group has continued to holdinvestment units since the time of listing, whichstrong supports the growth of SAR.
◼ Star Asia Group’s founders also as individuals
hold investment units.

＜Founder of Star Asia＞

Compliance officer

Number of units
held in same-boat
investment:

Review and approval

ReturnInvestment Committee (including external members)
Review and resolution

Reject219,190 units

Compliance Committee (including external members)
Review and resolution

RejectBoard of directors
Review and resolution

RejectOwnership:

12.2 ％

Items that do not need to be
discussed at the Compliance
Committee

SAR’s Committee
Review and approval

Disapprove

Items that need to be discussed at
the Compliance Committee23

4. Initiatives on ESG (5)GovernanceStar Asia Group’s Code of Conduct
Star 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,shall be 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.

24

６． Progression Status of Mid-Term Plan25

６． Progression Status of Mid-Term Plan (1)Progression Status of Mid-Term Plan
◆asset size: JPY 300 billion, versus asset size as of end of Jan. 2022: JPY 179.6 billion◆Targe Distribution per Unit (DPU): 1,600 yen, versus cruising DPU of 1,476 yen

Mid-Term Plan （Target year FY2026）
Asset Size (Target): JPY

300 billion

Indicative number of properties 100

Distribution Per Unit (Target):

1,600 yen or more

Growth objective of 2% per annum

Progress status as of the end of Jan. 2022
Assets Size

As of the end of January 2022

179.6 billion yen

Priority measures going forward:➢ Expand asset size by gathering highly liquid middle-sizedproperties.
➢ Improve income stability by diversifying the portfolio.
➢ Think “outside the box” and consider all measures.
➢ Sponsor pipeline (The fund’s assets under management of JPY
141.3 billion, pursuit development deals)➢ Find deals through the asset management company’s own
unique network.
➢ Conduct asset replacements as necessary.

Distributions Per Unit

Cruising Distributions Per Unit

1,476 yen

Priority measures going forward:➢ Improve distribution per unit through external growth, internal
growth.
➢ Cooperate with sub-sponsor (Nippon Kanzai Group)➢ Resolve rent gaps in the office portfolio.
➢ Rebuild the property management system to suit the portfoliomix.
➢ Reduce costs leveraging on the economy of scale➢ Optimize repair costs/ capital expenditures.

26

６． Progression Status of Mid-Term Plan (2)Unwavering sponsor support by Star Asia Group for the growth of SAR
Status of Star Asia Group<Expansion of the Team＞◼ Star Asia Group is continuing to expand the team.
◼ The group has under its umbrella Star Asia Sogo Kaihatsu K.K. in chargeof development functions, hotel operator Polaris Holdings Co., Ltd, andStar Asia Asset Advisors Co. Ltd. Which operates private placement
funds.

<Expansion of Assets under Management>◼ The investment amount in 2021 was historically the largest size.

Unwavering sponsor support by Star Asia Group＜ Actual track record of support up to the 12th FP ＞
SAR’s acquisition track record including those properties immediately sold.

67 properties／196.4bn
Properties acquired from Star Asia Group(note 4）
50 properties／160.5 bn
Properties acquired with support by Star Asia Group （note5）
13 properties／ 239 bn◼ Star Asia Special Situation Fund, the flagship fund, is executing its 5thinvestment.
◼ As of the end of Feb. 2022, assets under management totaled JPY 147.5
billion / It includes many properties which meet SAR’s investment
standards.

Going forward as well, we will continue to aim for external growth
based on support from Star Asia Group including new
development properties.

Star Asia Group’s initiatives for development projects

Properties managed by Star Asia Group(As of February 28, 2022)

Initiatives for development projects◆ Star Asia Group will continue to engage in development projects◆ The next development project, located in central Kyoto (Note 6)

Total of appraisal value(Note 7)

JPY 147.5bn【 Residential development projects in Kyoto】
Land 1.2%

Office, 10.4%

Other,25.8%
Retail,5.3%*The picture is a rendering

Residence
30.8%

Tokyo
area,
74.2%

Hotel49.8%

Expectation for expanded pipeline for SAR

Logistics, 2.5%

（Based on appraisal value）

27

６． Progression Status of Mid-Term Plan (3)Continued Initiatives to Improve Portfolio Quality◆ SAR returned gains on sale of properties to unitholders by replacing assets seven times to enhance the portfolio and crystallize strong unrealized gains◆ SAR considers the best way to utilize portfolio assets, and explore the possibility of internal growth through redevelopment

Consideration of redevelopment of portfolio assets
to enhance portfolio quality

Continuous asset replacement
Disposed assets
1st

2nd

3rd

4th

5th

Acquired assets

Residence

Residence

Urban Park
Yoyogi Koen

Urban Park
Gokokuji

OfficeLogistics

Oak MinamiAzabu

Baraki Logistics

OfficeHotel

Hakata-Eki Higashi
113 Building

Hotel WBF Fukuoka
Tenjin Minami

Residence

Hotel

Urban Park
Shin-Yokohama

GLANSITAKIHABARA

OfficeResidence

Alphabet Seven

Urban Park
IchigaoGain / Loss on
disposal

STEP 1+ JPY 150mn+ JPY 1,510mn

Considerwhether
redevelopment
can increase
revenue

7th

Total

RetailResidence

Suroy Mall
Nagamine

Urban Park
Tokiwadai Koen

Logistics

Residence

Funabashi
Nishiura Logistics I

Urban Park
Mitsuike Koen

Confirm thepresence of
any unused
space

Estimated
increase in life
cycle cost✓

One candidate
logistics
facility was
selected+ JPY 820mn

STEP 2+ JPY 190mn+JPY 1,620mn

Explore thepossibility ofcollaboration
with Star Asia
Sogo Kaihatsu

Urban Park
Gyotoku

6th

Status ofSAR’sinitiatives

Present data analysis+ JPY 10mn

▲JPY 10mn+ JPY
4,310mn

STEP 3

Increase inrevenue after
redevelopment

Formulation of a redevelopment plan
Initial design ofthe redevelopedbuilding/
Consider the
possibility of
attracting
tenants

Develop a postredevelopment
financial forecast/
Examineprofitability(Considerretention or sale)design✓ Initial
completed
Profitability is
being examined

Examination of effect on portfolio assets
Decrease inaveragebuilding age
due toinclusion of a
new building

Impact on DPU
during thedevelopment
period/Consider use ofretained earnings

To be judged
based onthe analysis(＊)（＊）Redevelopment projects are still in the consideration stage as of the date of this document,
and will not necessarily be executed.

28

６． Progression Status of Mid-Term Plan (4)The continuous implementation of corporate action in pursuit of the maximization of unitholders’ interests◆ SAR has continuously implemented Active Management initiatives since IPO all designed with the intent of maximizing unitholder value.
As a result of these strategies, SAR unit price has consistently outperformed the TSE REIT index since.

Active management and investment unit price performance since listing
IPO
April 20, 2016日(yen)

1st asset
replacement
December 5, 2016

1st follow-on
offering
March 17, 2017
2nd asset
replacement
February 28, 2017

3rd asset
replacement
July 23, 2018

SAR’s
AUM (right)
資産規模(右軸）

2nd follow-on
offering
January 12, 2018

3rd follow-on
offering
August 21, 2018

4th asset
replacement
August 21, 2018

SAR’sunit price (left)
SAR(左軸）MergerAugust 12, 2020
5th asset
replacement
March 2, 2020

6th asset
replacement
October 5,2020

4th follow-on
offering
August 2, 2021

7th asset
replacement
March 2,2020(¥ 100mn)

200,000

TSE
index
TSEREITREIT(左軸）

75,000.0

180,000
160,000

65,000.0

140,000
120,000

55,000.0
100,000
80,00045,000.0
Incorporation into
FTSE EPRANAREIT

35,000.0

60,00040,00020,00025,000.0

0*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 2- for-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.

29

６． Progression Status of Mid-Term Plan (5)Investment unit price performance 12FP
◆ Continue initiatives towards maximization of unitholders’ interest through various measures of active management.

◆ The fluctuation ratio of the price of investment units for the 12 th FP has outperformed the TSE REIT Index.

Investment unit price performance 12FP（Aug 31, 2021 – Jan 31, 2022）(unit)(yen)

66,000

出来高（右軸）Volume(right)(left)SAR(左軸）(left)TSE REIT(左軸）64,00062,000

Incorporation into
FTSE EPRANAREIT

90,00080,00070,00060,00060,00050,00058,00040,00056,00030,00054,00020,00052,00010,00050,0000（※）TSE REIT index is prepared using SAR’s closing price of August 2, 2022 (60,000 yen) as the base figure.

30

７．Appendix

31

About Star Asia Group
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.
• Conceived in 2006, Star Asia Group has invested over JPY961 bn since its foundation in 2007. (as of December 2021)• We fully operate under our Guiding Principles which has continuously driven the group to become one of the leading real estate
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 Sogo
Kaihatsu Co., Ltd.
• Star Asia Group’s realestate development
company

Star Asia Japan
Special Situations
LP• 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

Holds SAR’s investment
units

Currently develops
properties withpreferential negotiationrights owned by SAR

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

Development andoperation of newgeneration student
accommodation

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

Development andoperation of hospitality
properties; listed

Polaris Holdings
Co., Ltd.
Listed on TSE 2nd
Section （3010）;
develops and operates
hotels• Star Asia Group
became a sponsor in
Nov. 2018 and holds
75.65% of issued
stock

Under the business
partnership agreementwith Star Asia Group, thecompany provides to
SAR information on saleof properties as adeveloper and operatorof hotels

Star Asia Group with expanding business provides strong support to SAR

32

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
and Decisive 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.

33

Status of Unitholders
at the End of 12th Fiscal Period ended January 2022
Number of investment units by attribute: Total 1,789,389 units
End of 11FP

List of major unitholders (Top 10)

End of 12FP

Unitholder nameCategory
No. ofinvestment units

Ratio

No. ofinvestment units

Ratio

Individual

459,46727.4%

433,004

24.2%

Financial institution

506,82830.3%

525,836

29.4%

Domestic corporation

102,191

6.1%

82,917

4.6%

Foreign
Securities company

Total

534,43631.9%

688,348

38.5%

71,467

4.3%

59,284

3.3%

1,674,389

100.0%

1,789,389

100.0%

Number of unitholders by attribute: Total 26,292
End of 11FP

End of 12FP

Category
No. ofunitholders
Individual

Ratio

No. ofunitholders

97.4%

25,55997.2%

Financial institution

36

0.1%

40

0.2%

Domestic corporation

373

1.4%

367

1.4%

Foreign

263

1.0%

299

1.1%

31

0.1%

27

0.1%

27,282100.0%

26,292100.0%

Total

Holding ratio

1

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

219,986

12.3 %

2

Custody Bank of Japan, Ltd.
(Trust Account)

116,556

6.5 %3

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

79,9134.5 %4The Nomura Trust and Banking Co., Ltd.
(Trust Account)

64,5203.6 %5Star Asia Capital Ⅰ LLC

48,3902.7 %5Star Asia Capital Ⅱ LLC

48,3902.7 %5Star Asia Capital Ⅲ LLC

48,3902.7 %5Star Asia Capital Ⅳ LLC

48,3902.7 %9Custody Bank of Japan, Ltd.
(Security Trust Account)

44,778

2.5 %

10STATE STREET BANK AND TRUSTCOMPANY 505001

36,2592.0 %755,572

42.2 %

Ratio

26,579Securities company

Number ofinvestment units

Total
Star Asia Capital Ⅰ～Ⅳ LLC 、Lion Partners GK are Sponsor Group.

34

Change in business results(Unit: million yen)
7FP (ended Jul.
2019) actual

8FP (ended Jan.
2020) actual

9FP (ended Jul.
2020) actual

10FP (ended Jan.
2021) actual

11FP (ended Jul.
2021) actual

12FP (ended Jan.
2021) forecast（※1）

12FP (ended Jan.
2021) actual

3,344

3,200

3,314

5,648

5,536

5,873

5,890

17

Office rent

1,134

1,145

1,163

1,895

1,807

1,926

1,900

-25

Retail rent

-

-

-

848

790

838

842

4

Residence rent

438

439

512

889

1,023

1,173

1,152

-21

Logistics rent

910

817

887

974

909

910

910

0

Hotel rent

500

477

445

423

424

425

425

-

Other

349

320

306

616

582

598

660

61

798

769

741

1,550

1,556

1,674

1,629

-44

2,535

2,431

2,573

4,097

3,980

4,199

4,261

62

415

420

432

628

633

684

682

-1

2,119

2,011

2,141

3,469

3,347

3,514

3,579

64

Mezzanine

20

21

25

24

24

24

22

-1

TK distribution

Lease business revenue

Expenses related to rent
business(Depreciation is excluded)

NOI
Depreciation
Rent revenues/expenses

Comparison with
forecast

7

6

7

5

-

-

46

46

Gain on sale of real estate
property
Loss on sales of real estate
property

422

-

648

993

-

-

-

-

-

-

-

19

-

-

-

-

SGA

344

316

690

1,096

532

550

560

9

2,225

1,721

2,131

3,376

2,838

2,988

3,087

99

Non-operating income

0

1

3

4

3

-

1

1

Non-operating expenses

261

227

278

469

434

576

571

△4

1,965

1,494

1,857

2,911

2,407

2,412

2,517

105

-

-

-

8,891

-

-

-

-

1,964

1,493

1,857

11,801

2,407

2,411

2,516

105

Cash distribution per unit

3,625 yen

2,788 yen

3,436 yen

1,676 yen

1,462 yen

1,455 yen

1,478 yen

23 yen

FFO per unit

3,620 yen

3,539 yen

3,033 yen

1,531 yen

1,815 yen

1,730 yen

1,787 yen

57 yen

155

141

140

9,135

9,095

8,903

8,967

64

Operating income

Ordinary income
Extraordinary income
Net income

Balance of Internal reserves（※1) announced in the 11th FP financial briefing report (2021/9/14). （※2) The 10th FP FFO per unit has been calculated excluding gains from negative goodwill. （※3）The balance of internal reserves is calculated
as the total of the temporary difference adjustment reserve plus unappropriated retained earnings as of the end of the period, minus distributions of profits for the period.

35

Balance Sheets
11FP(As of July 31, 2021)

12FP(As of January 31, 2022)

Assets(Unit: thousand yen)

Current assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets

3,169,688
7,536,399
96,187177,085
83,497
7,506
11,070,364

3,774,975
7,950,192
88,581200,093
155,777
14,763
12,184,385

Non-current assets

Accumulated depreciation
Tools, furniture and fixtures, net
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
Construction in progress in trust
Total property, plant and equipment

114
△42
71
49,655,872△4,084,344
45,571,527
20,635△4,393
16,242
97,214△18,872
78,341
56,654△20,334
36,319117,051,893
550
162,754,946

114
△71
42
53,053,772△4,755,763
48,298,008
20,635△5,115
15,52099,519△23,76275,75667,545△24,969
42,576
127,283,507
175,715,413

4,082,300
4,082,300

4,082,300
4,082,300

692,234
300,000
260,510
10,4591,263,203
168,100,450

922,220
351,116
10,3793,317
1,287,033
181,084,747

179,170,815

13,60334,21947,823
193,316,956

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
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance expenses
Total deferred assets
Total assets

12FP(As of January 31, 2022)

Liabilities

Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable - otherAccrued expenses

Property, plant and equipment
Tools, furniture and fixtures

11FP(As of July 31, 2021)

Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities

544,5422,150,000
23,450,000
492,764
41,562605
71,861
913,623
23,834
27,688,794

789,397
15,350,000
500,649
49,478605
46,037915,355
30,771
17,682,295

56,840,000
6,142
5,217,745
238,65462,302,542
89,991,336

1,000,000
73,290,000
5,074
5,476,752
109,745
79,881,571
97,563,867

52,745,966

59,115,701

25,132,218

25,132,218

8,891,236
8,891,236

8,802,324
8,802,324

2,651,806

2,809,755

36,675,261
89,421,227

36,744,298
95,859,999△241,749△241,749
89,179,478
179,170,815△106,910△106,910
95,753,089
193,316,956

Non-current liabilities
Investment corporation bonds
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
Unitholders’ capital surplus
Voluntary reserve

Reserve for temporary difference adjustment
Total voluntary reserve
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

36

Statement of Income(Unit: thousand yen)
11FP
(As of July 31, 2021)

Operating revenue
Lease business revenue
Other lease business revenue
Other revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody and administrative service fees
Directors’ compensations
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of unpaid distribution
Interest on refund
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses
Amortization of investment unit issuance expenses
Amortization of investment corporation bondissuance costs
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)

12FP(As of January 31, 2022)

5,184,498
351,786
24,4955,560,780

5,467,061
423,937
69,4185,960,418

2,189,167
380,024
38,6992,400
111,699
2,721,990
2,838,789

2,311,905
392,495
42,7322,400
122,935
2,872,468
3,087,950

63
3,390
1
3,454

48
1,326
106
1,481

301,653
132,679-

337,1212,473
224,543
850

-

6,843

434,333
2,407,910
2,407,910
605
605
2,407,305
244,500
2,651,806

571,833
2,517,598
2,517,598
605
605
2,516,993
292,7622,809,755

37

Portfolio List (as of Jan 31, 2022)
Property nameLocation

AcquisitionPrice(mill)

Appraisalvalue atend of
11 FP(mill)

Investment
ratio
(%)

Appraisal
NOI yield(%)(＊)

Location

AcquisitionPrice(mill)

Appraisalvalue atend of
11 FP(mill)

Investment
ratio
(%)

Urban Park Mitsuike Koen

Yokohama City, Kanagawa

3,160

3,470

1.8

5.5

6.7

Urban Park Ryogoku

Sumida Ward, Tokyo

1,115

1,200

0.6

4.6

1.1

5.7

Urban Park Mizonokuchi

Kawasaki City, Kanagawa

2,019

2,100

1.1

4.8

3.5

5.1

Urban Park Miyamaedaira

Kawasaki City, Kanagawa

1,060

1,200

0.6

4.8

1.3

6.1

Urban Park Tsurumi

Yokohama City, Kanagawa

1,113

1,190

0.6

5.2

37,77943,23021.0

5.0

Minami-Azabu Shibuya Building

Minato Ward, Tokyo

2,973

3,010

1.7

4.7

Honmachibashi Tower

Osaka City, Osaka

6,065

6,840

3.4

5.1

1,763

2,600

Nishi-Shinjuku Matsuya Building

Shibuya Ward, Tokyo

Shibuya MK Building

Shibuya Ward, Tokyo

2,042

3,240

Asahi Building

Yokohama City, Kanagawa

6,320

8,200

Hakata-eki East Place

Fukuoka City, Fukuoka

Nihonbashi Hamacho Park Building

Chuo Ward, Tokyo

Amusement Media Gakuin
HonkanShibuya Ward, Tokyo

Higashi Kobe Center Building

Kobe City, Hyogo

2,286
1,450
2,580

2,910
1,500
2,710

1.0

0.8

Property nameSubtotal

4.7

1.4

4.0

7,440

7,390

4.1

5.5

Appraisal
NOI yield(%)(＊)

Saitama City, Saitama

6,942

7,660

3.9

4.8

Yokohama Logistics

Yokohama City, Kanagawa

3,560

4,330

2.0

5.8

Funabashi Logistics

Funabashi City, Chiba

7,875

8,870

4.4

5.2

Baraki Logistics

Ichikawa City, Chiba

4,700

4,980

2.6

4.0

Tokoyozawa Logistics

Tokorozawa City, Saitama

1,300

1,520

0.7

5.8

Funabashi Nishiura Logistics I

Funabashi City, Chiba

821

890

0.5

7.0

Funabashi Nishiura Logistics II

Funabashi City, Chiba

2,755

2,970

1.5

5.5

1,710

1,710

1.0

6.5

702

704

0.4

6.8

30,36533,634

16.9

5.2

Amusement Media Gakuin
Shinkan

Shibuya Ward, Tokyo

1,020

1,190

0.6

4.0

Seishin Building

Shinjuku Ward, Tokyo

11,20011,500

6.2

3.6

NK Building

Chiyoda Ward, Tokyo

5,350

5,370

3.0

3.8

Tsukasamachi Building

Chiyoda Ward, Tokyo

4,590

4,570

2.6

3.9

Takadanobaba AccessShinjyuku Ward, Tokyo

3,990

3,990

2.2

4.1

Matsubushi Logistics

Kita-Katsushika-gun, Saitama

Azabu Amerex Building

Minato Ward, Tokyo

2,780

2,890

1.5

3.8

Funabashi Hi-Tech Park Ⅰ

Funabashi City, Chiba

Hiei-Kudan Building

Chiyoda Ward, Tokyo

2,400

2,380

1.3

4.0

Shin-Yokohama Nara Building

Yokohama City, Kanagawa

2,300

2,500

1.3

5.1

R&B Hotel Umeda East

Osaka City, Osaka

2,069

2,270

1.2

5.5

The Portal Akihabara

Chiyoda Ward, Tokyo

1,510

1,490

0.8

4.0

Smile Hotel Namba

Osaka City, Osaka

1,750

1,410

1.0

4.3

OHA Building

Tachikawa City, Tokyo

1,804

1,930

1.0

5.2

Best Western Tokyo Nishi-kasai

Edogawa Ward, Tokyo

3,827

3,530

2.1

4.2

Urban Center Hakata

Fukuoka City, Fukuoka

2,870

3,030

4.4

3,200

1.8

4.5

79,240Best Western Yokohama
Yokohama City, Kanagawa
Hotel WBF Fukuoka Tenjin Minami Fukuoka City, Fukuoka
GLANSIT Akihabara
Chiyoda Ward, Tokyo

3,248

72,733

1.6
40.5

1,970

1,920

1.1

4.4

2,500

2,440

1.4

3.9

3,180

3,130

1.8

4.0

4.6

Retail

La Park Kishiwada

Kishiwada City, Osaka

5,400

5,230

3.0

7.1

Suroy Mall Chikushino

Chikushino City, Fukuoka

6,550

6,350

3.6

5.7

Seiyu Minakuchi

Koka City, Shiga

3,320

3,330

1.8

BAGUS Ikebukuro West

Toshima Ward, Tokyo

2,984

3,280

18,254

18,190

1.7
10.2

Subtotal

Subtotal

Hotel

Subtotal

Logistics

OfficeIwatsuki Logistics

7.4

Best Western Tokyo Nishikasai
GrandeEdogawa Ward, Tokyo

4.1

KOKO HOTEL Namba

Osaka City, Osaka

6.2

Urban Park Azabujuban

Minato Ward, Tokyo

2,045

2,680

1.1

4.4

Urban Park Daikanyama

Shibuya Ward, Tokyo

6,315

9,170

3.5

4.8

Urban Park Namba

Osaka City, Osaka

1,490

1,560

0.8

5.0

Urban Park Gokokuji

Toshima Ward, Tokyo

1,460

1,550

0.8

4.4

Residence

Urban Park Kashiwa

Kashiwa City, Chiba

1,186

1,190

0.7

5.0

Urban Park Ryokuchi-koen

Suita City, Osaka

1,550

1,650

0.9

5.6

Urban Park Koenji

Suginami Ward, Tokyo

1,167

1,180

0.6

4.7

Urban Park Ichigao

Yokohama City, Kanagawa

1,810

2,010

1.0

4.8

Urban Park Gyotoku

Ichikawa City, Chiba

1,430

1,540

0.8

4.8

Shiroi Logiman

Shiroi City, Chiba

2,470

2,470

1.4

5.7

Urban Park Sekime

Osaka City, Osaka

2,150

2,300

1.2

5.2

Urban Park Imazato

Osaka City, Osaka

993

1,040

0.6

5.4

Urban Park Yoyogi

Shibuya Ward, Tokyo

1,740

1,850

1.0

3.7

Urban Park Tokiwadai Koen

Yokohama City, Kanagawa

3,506

3,880

2.0

5.5

（＊） “Appraisal NOI Yield” is the ratio of appraisal NOI using the direct capitalization method to the acquisition price of the property inthe real estate appraisal report, rounded to the second decimal place.

Type

2,000

1,410

1.1

3.6

Subtotal

20,544

19,310

11.4

4.3

Total

179,675

193,604

100.0

4.9

Name of the security（asset overview）

Underlying asset, etc.

Period-end bookvalue

Asset nameLocationInterest rate(※1)

Mezzanine(Subordinated bonds)

Star Asia Mezzanine Loan Debt
Investment Series 1

400
million yen

Relief Premium
HanedaOta Ward,
Tokyo

Base rate+5.0%

Mezzanine(Subordinated BeneficiaryInterest)

Star Asia Mezzanine Loan Debt
Investment Series 3(※3)

122
million yen

The Royal Garden
Residence
Shirokanedai

Minato Ward,Tokyo

Base rate+5.0%

Mezzanine(Subordinated bonds)

Star Asia Mezzanine Loan Debt
Investment Series 6

400
million yen

Tajimi Logistics
CenterTajimi-shi,
Gifu

Base rate
+7.0%

922
※2：The base interest rate : JBA 3-month yen TIBOR ※3： Fully redeemed on February 25

38

Portfolio List (as of Jan 31, 2022)

60 properties

No. of properties

Hotel
11.4%
Office40.5%

Logistics
16.9%

179.6bn

Asset size
Residence
21.0%

Retail10.2%

NAV per unit

59,749 yen

Portfolio appraisal NOI
yield (Note 8)

4.9 ％Post-depreciation
appraisal NOI yield (Note 9)

Ratio of Assets
in Tokyo area (Note 10)
Ratio of Mid-size
assets (Note 11)
Ratio of Assets acquired
from Sponsor Group Note12)(

4.1 ％72.3 ％
93.8 ％
73.9 ％

Period-end appraisal value：

193,604 million yen

Total book value：

179,797 million yen

Period-end unrealized gains (losses)：

13,806 million yen

Net assets per unit：

53,511 yen

Unrealized gains per unit：

7,716 yen

NAV per unit (*1)：

59,749 yen

P/NAV per (*2)

：

1.01

(*1) NAV per unit = (Period-end net assets + Period-end unrealized gains – Total cash distribution) / Total
number of investment units issued and outstanding (*2) P/NAV per ＝Investment unit price / NAV per unit
(Investment unit price on January 31, 2022: 60,300 yen)

39

Balance of Payments of Individual Properties (1)Asset Type
Property nameAcquisition priceAppraisal value
Structure/Floors
Location

Lot area
Total floor areas
Construction completion

OFC-01
Minami-Azabu Shibuya
Building

Honmachibashi Tower

OFC-04
Nishi-Shinjuku Matsuya
Building

OFC-06

OFC-08

OFC-09Shibuya MK Building

Asahi Building

Hakata-eki East Place

2,973 million yen
3,010 million yen
SRC B1/7F
Minato Ward, Tokyo

6,065 million yen
6,840 million yen
S/SRC B1/21F
Osaka City, Osaka

1,763 million yen
2,600 million yen
SRC B1/9F
Shibuya Ward, Tokyo

2,042 million yen
3,240 million yen
S 6F
Shibuya Ward, Tokyo

6,320 million yen
8,200 million yen
S・SRC B2/12F
Yokohama City, Kanagawa

2,286 million yen
2,910 million yen
SRC 9F
Fukuoka City, Fukuoka

766.11㎡

1,274.37㎡

589.94㎡(surface right)

620.42㎡(of which 2.62 m² leasehold)1,096.86㎡

1,129.86㎡

4,137.21㎡
June 15, 1993

15,407.83㎡
February 8, 2010

5,117.80㎡
May 28, 1987

1,982.86㎡
July 31, 1993

12,353.83㎡
November 25, 1994

6,243.13㎡
February 24, 1986

11FP

12FP

11FP

12FP

11FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee

OFC-03

12FP

11FP

12FP

11FP

12FP

11FP

12FP

133,299

75,619195,045

217,480

94,358100,01170,90079,807

225,851

226,273108,224

109,992

78,86468,549173,222

191,31488,03591,421

66,38775,331

210,571

210,114

97,514

98,94454,435

7,069

21,823

26,166

6,323

8,590

4,513

4,475

15,27916,158

10,71011,04840,58135,81655,96462,73135,864

43,957

14,715

13,03054,70760,91029,184

26,775

5,766

5,622

13,86014,020

6,524

7,149

4,733

4,812

15,405

14,758

8,715

8,131

Utilities expenses

400

400

400

400

400

400

350

350

600

400

400

400

Insurance premium

4,429

5,229

17,203

20,681

5,795

7,398

2,609

2,914

15,471

18,268

6,267

7,061

Repair expenses

148

150

457

465

164

167

57

58

479

487

216

219

Trust fee

16,188

3,631

2,964

1,328

3,462

6,414

2,270

463

5,921

9,918

3,210

2,000

Taxes and dues

4,512

4,510

19,703

19,702

3,470

3,480

4,277

4,277

15,87815,757

7,084

7,084

Other expenses

9,135

16,272

1,375

6,132

16,046

18,947

417

154

950

1,319

3,291

1,877

NOI

92,71739,802139,081

154,749

58,49356,05456,184

66,776

171,143

165,362

79,04083,216

Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures

11,851

12,64845,34545,435

10,135

10,490

3,616

3,693

28,282

28,772

8,660

9,513

80,86627,154

93,735

109,314

48,35845,56352,56863,083

142,861

136,590

70,37973,70344,939

-

1,957

3,244

11,727

1,242

1,683

1,706

7,490

23,62425,215

19,813

NCF
Period-end book value

47,77839,802

137,124

151,505

46,76654,81154,50165,070163,653

141,738

53,82563,403

2,977,628

2,964,980

5,729,565

5,687,374

1,827,435

1,818,187

2,091,110

2,089,124

6,304,432

6,299,284

2,335,089

2,345,389

40

Balance of Payments of Individual Properties (2)Asset Type
Property name

OFC-10
OFC-11
Nihonbashi Hamacho Park Amusement Media Gakuin
Building
HonkanOFC-12
Higashi Kobe Center
Building

OFC-13
Amusement Media Gakuin
Shinkan

OFC-14OFC-15Seishin 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

1,500 million yen

2,710 million yen

7,390 million yen

1,190 million yen

11,500 million yen

5,370 million yen

Structure/Floors

SRC 11FSRC S 8F/B1F

SRC 14F

RC７F

SRC 10F/1B

SRC 10F/1B

Location

Chuo Ward, Tokyo

Shibuya Ward, Tokyo K

Kobe City, Hyogo

Shibuya Ward, Tokyo

Shinjyuku Ward, Tokyo

Chiyoda Ward, Tokyo

Lot area

319.04㎡Number derived by multiplying theratio of holdings）
2,383.76㎡Number derived by multiplying
the ratio of holdings）

433.21㎡

8,488.11㎡

203.43㎡

886.93㎡

590.72㎡

1,892.18㎡

25,740.46㎡

913.71㎡

7,624.66㎡

4,994.70㎡

July 13, 1992

November 2, 1994

January 6, 1992

January 25, 1999

March 31, 1989

October 28, 1991

Total floor areas
Construction completion

11FP

11FP

12FP

11FP

12FP

11FP

12FP

51,78849,807295,580

279,400

254,280

257,794

128,600

129,510

51,78849,807271,387

253,508

238,682

241,421122,337

122,674--

24,19325,892

15,59816,372

6,263

6,836

12,13012,141

104,438

111,799

68,89768,50630,942

31,467

Management fee

880

813

24,04025,45019,205

19,933

11,606

11,803

Utilities expenses

400

400

400

400

350

350

350

350

Total operating revenue
from real estate leasing
Lease businessrevenue
Other lease businessrevenue
Total operating expenses
from real estate leasing

12FP

11FP

12FP

（*）

11FP

12FP

（*）

-

3

27,121

29,503

9,073

11,321

4,140

4,773

172

175

939

955

283

288

208

211

-

-

4,144

7,987

17,604

14,5603,599

149

Taxes and dues

4,299

4,299

28,63528,64020,723

20,726

10,706

10,652Other expenses

6,378

6,450

19,15818,862

1,656

1,326

331

3,527

NOI

39,65837,66552,625

191,141

167,601

20,651

185,383

189,287

97,65898,043

Depreciation

2,837

2,837

4,221

33,82235,027

1,672

12,71814,043

8,736

8,819

Operating income (loss)
from real estate leasing

36,82034,82848,403

157,319

132,574

18,978

172,664

175,244

88,922

89,224---

14,38093,442347

41,45524,0072,177-

Insurance premium
Repair expenses
Trust fee

Capital expenditures
NCF
Period-end book value

39,65837,6651,450,282

1,447,445（*）

2,588,217

52,625

176,761

74,1582,583,995

7,600,830

7,659,246（*）

1,038,531

20,303

143,927

165,280

95,481

98,043

1,037,206

11,243,533

11,253,497

5,360,580

5,351,761

41(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

Balance of Payments of Individual Properties (3)Asset Type
Property name

OFC-16
Urban Center
Kanda Tsukasamachi

OFC-17

OFC-18OFC-19OFC-20

OFC-21

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

4,570 million yen

3,990 million yen

2,890 million yen

2,380 million yen

2,500 million yen

1,490 million yen

Structure/Floors

SRC 8F/1B

SRC 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

Lot area

709.52㎡

930.70㎡

601.71㎡

700.59㎡

184.76㎡

5,356.99㎡

1,010.67㎡

March 17, 1992

May 31, 2002

Total floor areas
Construction completion

Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

4,629.27㎡

5,757.14㎡

2,909.80㎡

478.27㎡（Number derived bymultiplying the ratio of holdings）
3,205.72㎡（Number derived bymultiplying the ratio of holdings）

January 20, 1988

January 14, 1994

June 30, 1988

September 17, 1991

11FP

11FP

12FP

12FP

11FP

12FP

11FP

12FP

11FP

12FP

11FP

12FP

117,030

68,261

108,399

112,884

65,034

71,22962,03366,43478,53280,96432,30532,986

110,554

64,202

98,429102,460

62,97968,11762,03366,434

70,122

71,944

31,18831,836

6,475

4,058

9,969

10,424

2,054

3,111

-

-

8,410

9,019

1,116

1,150

43,097

48,64035,72032,08019,71020,68525,56820,756

31,10928,517

7,778

6,223

9,740
400
4,977
200
17,8507,382
2,545
73,932
8,339

8,883
400
4,944
204
20,431
7,463
6,313
19,62010,521

13,090
400
6,332
219
5,340
9,011
1,325
72,6798,932

13,308
400
7,661
223
898
9,011
576
80,804
8,980

7,198
375
2,258
103
1,161
7,598
1,014
45,323
3,345

7,185
375
2,877
105
1,976
7,598
567
50,543
3,446

3,410
500
183
186
1,008
6,630
13,64836,465
3,802

3,539
500
29
189
270
6,630
9,597
45,678
3,909

8,875
350
4,710
190
7,722
7,691
1,570
47,423
8,710

8,866
350
6,043
193
3,705
7,697
1,660
52,447
9,869

2,738
400
999
39
330
1,562
1,708
24,526
3,472

2,835
400
1,048
40
200
1,546
153
26,762
3,472

65,593

9,098

63,747

71,823

41,97847,096

32,662

41,76938,712

42,57821,05323,28981,879△ 7,946
4,656,608

74,154△ 54,534
4,720,241857
71,821
3,978,344

80,804
3,969,364

1,921
43,402
2,777,532

14,94035,602
2,789,026

2,550
33,914
2,398,648

45,6782,394,739

28,76018,6622,330,910

60,223△ 7,776
2,381,264

24,526
1,503,054

26,762
1,499,581

42

Balance of Payments of Individual Properties (4)Asset Type

OFC-22

OFC-23

RTL-01

RTL-02

RTL-03

RTL-05

Property name

OHA Building

Urban Center Hakata

LaPark Kishiwada

Suroy Mall Chikushino

Seiyu Minakuchi

BAGUS Ikebukuro West

Acquisition price

1,804million yen

2,870million yen

5,400 million yen

6,550 million yen

3,320 million yen

2,984million yen

Appraisal value

1,930million yen

3,030million yen

5,230 million yen

6,350 million yen

3,330 million yen

3,280million yen

Structure/Floors

RC S 6F/1B

S 8F

RC S 3F

S 2F

S 4F

SRC 8F/2B

Tachikawa city, Tokyo

Fukuoka city, Fukuoka

Kishiwada city, Osaka

Chikushino city, Fukuoka

Koka city, Shiga

Toshima Ward, Tokyo

Location
Lot area

964.80㎡

656.72㎡

121,423.46㎡（Also has leased land
19,917.56㎡ (of which leased land isof 25,321.5㎡ for use as a parking
16,444.53㎡)
lot.)

39,799.74㎡

264.15㎡

Total floor areas

4,659.20㎡

3,566.56㎡

65,663.02㎡

31,028.62㎡

31,829.71㎡

1,497.45㎡

Construction completion

May 30, 1990

August 27, 2020

August 30, 1994

June 22, 2007

May 31, 1999

November 20, 1992

11FP

11FP

12FP

11FP

12FP

11FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

12FP

12FP

11FP

12FP

11FP

12FP

-

54,372-

69,587486,731496,379

285,039

354,964--

48,931-

69,587416,957

415,561

281,432

275,178

-

-

5,441

-

-

69,77480,817

3,607

79,785--

10,511-

5,370

273,949

282,680

69,85187,735

-

4,726
361
4,289
128
694
31
279
43,861
4,609

-

4,731
361
109
29
138
64,217
15,272

120,173
1,850
89,884
1,164
7,279
44,011
9,587
212,781
24,886

118,874
1,850
103,932
1,184
934
44,045
11,859213,699
25,431

25,767
650
4,777
612
4,431
19,398
14,214215,188
23,70623,229
350
5,421
622
10,03019,37928,702
267,229
23,595-39,251-

48,945

187,894

188,267

191,482-860
43,001
1,814,395-

64,2172,884,118

12,317200,4635,404,262

15,839
197,859
5,394,670

215,1886,509,371

（*）

-

（*）

128,018
26,098-58,2382,284

243,633

101,920-

55,953

267,2296,474,017

8,434
119,583
3,273,918-

1,674
56,563
3,006,464（*）

3,291,582

43(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

Balance of Payments of Individual Properties (5)Asset Type
Property name

RSC-01
Urban Park Azabujuban

RSC-02
Urban Park Daikanyama

RSC-05
Urban Park Namba

RSC-06
Urban Park Gokokuji

RSC-07
Urban Park Kashiwa

RSC-08
Urban Park Ryokuchi-koen

Acquisition priceAppraisal value

2,045 million yen
2,680 million yen
SRC with slate roofing
B1/12F
Minato Ward, Tokyo

6,315 million yen
9,170 million yen

1,490 million yen
1,560 million yen

1,460 million yen
1,550 million yen

1,186 million yen
1,190 million yen

1,550 million yen
1,650 million yen①RC B1/3F ②RC B1/9F

RC 14FRC B1F/5F

SRC B1F/8F

RC 8F

Shibuya Ward, Tokyo

Osaka City, Osaka

Toshima Ward, Tokyo

Kashiwa City, Chiba

Suita City, Osaka

670.39㎡

942.66 m 2 (Of which, 50.85 m2 is
contributed to Toshima Ward asroad)

1,597.85㎡

2,804.56㎡

Structure/Floors
Location
Lot area
Total floor areas
Construction completion

417.67㎡
2,564.94㎡

8,261.29㎡

2,776.87㎡

2,451.72㎡

4,243.71㎡

5,854.64㎡

November 29, 1999

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

January 9, 2013

February 28, 1990

August 28, 1997

March 10,1989

11FP

11FP

11FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

2,469.06㎡

12FP

11FP

12FP

11FP

12FP

12FP

12FP

11FP

12FP

51,142

55,790187,458

186,998

42,591

41,89943,53538,35838,42537,56656,30355,63349,563

52,770180,111

176,937

40,98239,471

39,32236,88736,48936,66753,00750,801

1,578

3,019

7,347

10,060

1,608

2,427

4,212

1,470

1,936

899

3,295

4,832

14,567

11,66035,41436,097

11,096

13,346

16,621

19,547

9,496

8,047

15,041

15,980

2,334
350
588
72
5,615
2,873
2,732
36,574
5,120

2,257
350
628
74
784
2,873
4,693
44,129
5,167

9,203
350
3,442
247
5,933
11,453
4,783
152,044
13,610

8,900
350
3,666
251
5,415
11,4536,060
150,900
13,514

2,444
350
314
84
2,732
2,820
2,349
31,494
7,555

2,419
450
333
85
3,100
2,833
4,123
28,553
7,544

3,765
400
2,188
66
4,877
1,897
3,425
26,913
5,700

4,015
400
2,202
67
7,877
1,897
3,086
18,810
5,709

2,147
350
512
109
1,714
2,949
1,712
28,929
7,495

1,880
350
520
111
1,499
2,949
735
29,519
7,553

2,428
350
2,384
162
3,944
3,576
2,194
41,262
8,124

1,758
450
3,396
165
4,328
3,588
2,292
39,6538,204

31,45438,962

138,434

137,385

23,93921,00821,212

13,10021,433

21,96533,13731,4482,701
33,872
2,077,780

297
43,832
2,072,910

10,351
141,693
6,370,600

2,011
148,8886,359,097

31,494
1,491,687

28,553
1,484,142

455
26,4581,501,189

221
18,5891,495,700

2,852
26,077
1,236,847

1,544
27,9741,230,838

1,789
39,473
1,595,543

2,733
36,9191,590,072

44

Balance of Payments of Individual Properties (6)Asset Type

RSC-09

RSC-10

RSC-11

RSC-12

RSC-13

RSC-14

Property nameUrban Park Koenji

Urban Park Ichigao

Urban Park Gyotoku

Shiroi Logiman

Urban Park Sekime

Urban Park Imazato

Acquisition price

1,167 million yen

1,810 million yen

1,430 million yen

2,470 million yen

2,150 million yen

993 million yen

Appraisal value

1,180 million yen

2,010 million yen

1,530 million yen

2,470 million yen

2,300 million yen

1,040 million yen

Structure/Floors

RC 4F

RC SF/1B

SRC 10F

RC 13F

SRC 15F

RC 10F

Location

Suginami Ward, Osaka

Yokohama City, Kanagawa

Ichikawa city, Chiba S

Shiroi city, Chiba

Osaka City, Osaka

Osaka City, Osaka

Lot area

988.26㎡

1,758.84㎡

1,122.57㎡

11,485.06㎡ （Number derived bymultiplying the ratio of holdings）

2,346.39㎡

1,803.70㎡

8,190.11㎡

4,862.83㎡

August 18, 1989

December 20, 1991

11FP

11FP

Total floor areas
Construction completion

1,524.34㎡

5,243.85㎡

3,397.95㎡

22,448.08㎡ （Number derived bymultiplying the ratio of holdings）

October 13, 1987

July 10, 1998

March 1, 1995

May 9, 1995

11FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

12FP

11FP

12FP

11FP

12FP

11FP

12FP

12FP

12FP

34,71533,55956,48857,62745,031

44,130140,163

140,695

83,94081,40438,86439,76931,642

31,12954,413

56,10642,50741,921

132,560

133,783

81,27678,371

38,72639,652

3,072

2,430

2,075

1,521

2,523

2,209

7,602

6,911

2,663

3,033

138

117

15,03910,504

14,04912,272

9,539

9,284

61,646

61,22538,42836,118

11,927

10,376

1,768
400
1,380
50
6,616
1,009
3,814
19,675
2,796

2,286
400
1,402
50
3,177
1,009
2,177
23,055
2,796

3,092
400
1,341
145
2,482
3,942
2,644
42,438
5,445

3,094
400
1,425
147
2,519
3,941
742
45,355
5,458

2,186
400
1,581
95
2,014
2,146
1,114
35,491
4,198

2,154
400
1,602
97
2,337
2,146
545
34,846
4,315

5,968
750
2
815
12,726
13,932
27,45278,516
19,094

5,964
750
44
829
10,994
13,92628,716
79,47019,168

9,962
375
2,329
281
17,934
5,291
2,253
45,511
11,38910,151
375
2,286
286
13,762
5,288
3,969
45,285
11,905

4,168
375
264
142
2,568
3,207
1,200
26,937
5,185

4,324
375
293
145
1,220
3,202
814
29,393
5,196

16,87820,25836,99339,897

31,29330,53059,42160,301

34,12233,38021,751

24,197

19,675
1,189,979

23,055
1,187,182

519
41,9191,920,540

399
44,956
1,915,481

456
35,035
1,509,749

4,775
30,0701,510,209

850
77,6662,432,918

1,840
77,6292,415,591

24,893
20,6182,176,433

29,385
15,9002,193,913

143
26,794
982,774112
29,281
977,69045

Balance of Payments of Individual Properties (7)Asset Type

RSC-15

RSC-16
Urban Park
Tokiwadai Koen

RSC-17
Urban Park
Mitsuike Koen

RSC-18

RSC-19

RSC-20Urban Park Ryogoku

Urban Park Mizonokuchi

Urban Park Miyamaedaira

Property nameUrban Park Yoyogi

Acquisition priceAppraisal value

1,740 million yen
1,850 million yen

3,506 million yen
3,880 million yen

3,160 million yen
3,470 million yen

1,115million yen
1,200 million yen

2,019million yen
2,100million yen

1,060million yen
1,200million yen

Structure/Floors

RC 8F

RC 5F

RC 6F

SRC 9F

RC 5F

S Alloy-plated steel plate
3F

Sumida Ward, Tokyo
669.98㎡

Kawasaki City, Kanagawa
2,624.51㎡

Kawasaki City, Kanagawa
1,239.53㎡

Location
Lot area
Total floor areas
Construction completion

Shibuya Ward, Tokyo
464.09㎡
1,418.03㎡

15,708.08㎡

10,918.37㎡

2,351.42㎡

5,029.52㎡

2,039.17㎡

September 4, 2017

Feb 17, 1994

March 24, 1992

October 31, 1997

August 23, 1988

June 10, 2021

11FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

Yokohama City, Kanagawa Yokohama City, Kanagawa
12,544.61㎡
10,216.95㎡

11FP

12FP

11FP

12FP

35,702

12FP
37,585140,985

141,887

126,287

127,356

11FP
-

12FP
33,019

11FP
-

12FP
57,055

11FP
-

12FP
22,22534,717

34,107

134,337

136,498

119,167

121,431-

28,961-

55,109-21,344

984

3,477

6,648

5,388

7,119

5,924

-

4,058

-

1,945

-

881

7,812

11,111

44,62534,50327,42927,137

-

5,726

-

9,601

-

9,155

2,035
400
224
49
2,284
1,660
1,157
27,889
4,393

2,326
400
251
50
1,534
1,660
4,887
26,473
4,393

11,341
394
1,653
414
11,36910,833
8,617
96,36012,624

11,645
400
1,805
421
5,511
10,8293,888
107,384
12,624

10,795
394
1,045
333
7,382
7,476
98,858
11,707

10,670
400
1,161
339
8,705
5,860
100,218
11,770

-

2,198
361
387
66
1,599
2
1,109
27,293
2,401

-

4,143
361
695
137
2,580
4
1,679
47,453
5,646

-

1,185
361
153
47
16
1
7,390
13,0694,522

23,49522,08083,736

94,75987,15088,448-24,892-41,806-8,547

27,8891,731,212

26,473
1,726,819

96,3603,635,565

107,384
3,622,941

98,8583,292,404

5,540
94,6783,286,174-

1,954
25,3391,150,151-

1,785
45,6672,085,971-

290
12,7791,105,101

46(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

Balance of Payments of Individual Properties (8)Asset Type

RSC-21

LGC-01

LGC-02

LGC-03

LGC-04

LGC-05

Property nameUrban Park Tsurumi

watsuki Logistics

Yokohama Logistics

Funabashi Logistics

Baraki Logistics

Tokorozawa Logistics

Acquisition price

1,113 million yen

6,942 million yen

3,560 million yen

7,875 million yen

4,700 million yen

1,300 million yen

Appraisal value

1,190 million yen

7,660 million yen

4,330 million yen

8,870 million yen

4,980 million yen

1,520 million yen

Structure/Floors

RC 6F

Steel construction, zinc plated
steel roofing, 5 floors

RC 8F

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

RC・S 5F

S 2F

Location

Yokohama City, Kanagawa

Saitama City, Saitama

Yokohama City, Kanagawa

a Funabashi City, Chiba

Ichikawa City, Chiba

Tokorozawa City, Saitama

Lot area

2,172.70㎡

15,623.14㎡

6,240.96㎡

8,645.63㎡

12,471.50㎡

5,994.75㎡

August 14, 2015

April 30, 1999

Total floor areas
Construction completion

Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

3,169.13㎡

29,729.72㎡

February 17, 1994

October 29, 2014

11FP

11FP

12FP

12FP

10,565.95㎡

19,858.00㎡

18,387.89㎡(including 256.15

38,871.45㎡(two buildings

m2 break areas etc.)

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

October 1, 1994
11FP

12FP

11FP

12FP

-

196,498

198,764

256,808

261,389-

187,713

187,727

241,899

243,219-

8,784

11,037

14,90918,17029,226

31,43150,73655,6775,920
350
11,037353
329
13,441
167,332
46,78896,831
19,983

11,773400
10,901
501
5,245
21,392521
206,072
27,29013,363400
14,939510
4,452
21,392
619
205,71127,474

-

（*）

（*）

-

28,823
2,716

5,908
350
8,784
346
394
13,442
167,271
46,788-

26,107

120,483

120,544

76,848

178,781-346
28,476
1,153,555

167,271
6,514,389

167,332
6,467,600

96,831
3,696,301

4,760
201,311
7,742,907(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

（*）

3,716,284

11FP

12FP

11FP

（*）

（*）

12FP

（*）

（*）

98,446
15,77437,291
5,889

178,237

82,672

31,402

10,061
195,649
7,725,495

98,446
4,597,416

1,826
35,465
1,354,832

4,613,191

1,358,89547

Balance of Payments of Individual Properties (9)Asset Type

LGC-07

LGC-08Property name

Funabashi Nishiura
Logistics Ⅱ

LGC-09

LGC-10

HTL-01

HTL-02

Matsubushi Logistics

R&B Hotel Umeda East

Smile Hotel Namba

Acquisition price821 million yen

2,755 million yen

1,710 million yen

Appraisal value

890 million yen

2,970 million yen

1,710 million yen

702 million yen

2,069 million yen

1,750 million yen

704 million yen

2,240 million yen

1,410 million yen

Structure/Floors

R 4F

S 2F

S 2F

RC 9F

S 9F

Funabashi city, Chiba

Funabashi city, Chiba

Osaka City, Osaka

Osaka City, Osaka

Funabashi Hi-Tech ParkⅠ Funabashi Hi-Tech ParkⅡ

Location

Funabashi city, Chiba

Lot area

3,964.00㎡

RC 3F
Kita-Katsushika-gun,
Saitama
11,580.65㎡

13,420.44㎡

8,268.35㎡

730.26㎡

285.28㎡

Total floor areas

6,316.32㎡

19,833.47㎡

8,029.47㎡

4,384.83㎡

3,945.65㎡

1,711.42㎡

W arehouse: Mar. 20, 1991 Plant:
May 15, 1972 Office: May 13, 1986

March 31, 1997

May 19, 2003

September 5, 2001

October 20, 2000

February 6, 2008

11FP

11FP

11FP

Construction completion

11FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

12FP

11FP

（*）

11FP

（*）

12FP

（*）

12FP

（*）

12FP

12FP

65,392

62,141

17,626

22,37465,392

62,141

17,626

22,374----12,015

12,525

4,421

3,531

742
350
6
155
5,211
5,404
654
49,616
10,523

660
550
70
888
2,227
24
13,204
12,209

660
550
71
2,227
21
18,842
12,20928,151
4,559

75,925
16,27255,4585,737

24,560
2,594

742
350
3
152
4,788
5,404
573
53,377
10,096

23,591

59,652

49,721

21,96643,28139,092995

6,633

28,151
856,343

4,995
70,9302,684,786

55,458
1,692,788

24,560694,216

9,277
44,0992,107,583

11,042
38,573
2,108,102

13,204
1,650,937

18,842
1,638,728（*）

860,90312FP（*）

2,696,063（*）(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

1,698,525（*）

696,81048

Balance of Payments of Individual Properties (10)Asset Type

HTL-04

HTL-05

Property name

REMBRANDT STYLETokyo Nishikasai

Best Western Yokohama

Hotel WBF Fukuoka Tenjin
Minami

GLANSIT Akihabara

Acquisition price

3,827 million yen

3,248 million yen

1,970 million yen

2,500 million yen

3,180 million yen

2,000 million yen

Appraisal value

3,530 million yen

3,200 million yen

1,920 million yen

2,440 million yen

3,130 million yen

1,410 million yen

Structure/Floors

HTL-03

HTL-06

HTL-07

HTL-08REMBRANDT STYLE
KOKO Hotel Osaka Namba
Tokyo Nishikasai Grande

SRC B1F／9F

SRC B1F／9F

RC 10F

SRC 10F/B1F

S 8F

RC9F

Location

Edogawa Ward, Tokyo

Yokohama City, Kanagawa

Fukuoka City, Fukuoka

Chiyoda Ward, Tokyo

Edogawa Ward, Tokyo

Osaka City, Osaka

Lot area

1,418.00㎡

782.66㎡

543.94㎡

167.74㎡

657.00㎡

335.31㎡

Total floor areas

5,293.88㎡

4,686.09㎡

2,281.49㎡

1,081.97㎡

2,755.19㎡

2,061.38㎡

March 19, 1991

September 21, 1987

February 20, 2017

September 20, 2017

February 7, 2017

April 7, 2017

11FP

11FP

11FP

11FP

Construction completion

11FP
Total operating revenue
from real estate leasing
Lease businessrevenue
Other leasebusiness revenue
Total operating
expenses from realestate leasing
Management fee
Utilities expenses
Insurance premium
Repair expenses
Trust fee
Taxes and dues
Other expenses
NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures
NCF
Period-end book value

12FP

12FP

12FP

12FP

12FP

11FP

12FP

84,782

84,60080,40080,40070,00270,002--

84,60084,60080,40080,40070,00270,002

-

-

182

-

-

-

-

-

-

-

10,063

12,109

6,485

6,476

6,684

6,875

4,795

6,109

1,200
400
159
424
7,856
24
74,71812,895

1,200
400
161
2,406
7,855
85
72,49012,895

1,200
400
135
205
4,521
23
73,914
13,069

1,200
400
137
196
4,520
21
73,92313,069

990
400
91
188
5,182
23
63,126
10,857

979
350
49
64
100
3,169
84
△ 4,795
9,050

1,230
350
65
1,111
3,169
184
△ 6,109
9,050

61,82359,59460,84574,7183,854,352

72,4903,841,456

73,914
3,234,403

（*）

（*）

48,077
8,647

49,012
4,643

990
400
90
5,182
21
63,317
10,85760,85439,43044,36852,46052,269△ 13,845△ 15,160

73,9233,221,334

48,0771,930,97849,0122,490,020

63,317
3,143,237

63,126
3,132,380△ 4,795
1,971,136△ 6,109
1,962,086(*) Not disclosed as consent for disclosure has not been obtained from the tenant.

（*）

1,939,625（*）

2,494,663

49

Balance of Payments of Individual Properties (11)

OfficeRetail

11FP

12FP

Total operating revenue
from real estate leasing

2,107,587

2,169,355

Lease businessrevenue

11FP

Residence

Logistics

12FP

11FP

12FP

931,8091,070,994

1,121,634

Hotel

Total

11FP

12FP

11FP

12FP

11FP

12FP

1,264,750

950,535

959,866

424,718

426,032

5,536,284

5,890,999

1,917,333

2,009,848

858,427

910,391

1,068,828

1,204,142

915,373916,647

424,536

426,032

5,184,498

5,467,061

Other lease businessrevenue

190,253

159,506

73,381

160,60352,80660,60835,161

43,219182-351,786

423,937

Total operating expenses
from real estate leasing

623,899653,581376,322403,809332,735

345,060

169,305

170,155

53,89057,053

1,556,153

1,629,660

Management fee

158,173

168,767

147,741

144,499

73,644

83,44432,34833,575

7,498

7,749

419,406

438,037

Utilities expenses

7,275

7,797

3,000

3,061

6,039

7,695

3,350

3,850

3,200

3,200

22,86425,603

Insurance premium

114,861

137,765

94,661

109,353

19,254

22,61831,732

40,66553

6

260,562

310,409

Repair expenses

4,171

4,480

2,290

2,372

3,071

3,451

1,874

1,907

784

797

12,19213,010Trust fee

93,57775,431

12,75011,81390,19877,452

17,273

8,186

6,405

9,114

220,204

181,998

Taxes and dues

165,167

165,139

74,99775,01967,594

67,613

78,21978,21535,15335,152

421,132

421,139

Other expenses

80,672

94,19940,881

57,68872,93282,785

4,507

3,755

795

1,032

199,789

239,461

1,483,687

1,515,774

555,486

667,185

788,899

919,690781,230

789,710

370,827

368,979

3,980,131

4,261,339

208,497

237,257

74,23577,410124,444

140,608

144,368

145,073

81,46881,895633,013682,245

1,275,189

1,278,516

481,251

589,775

664,455

779,081

636,861

644,637

289,359

287,084

3,347,117

3,579,094

266,996

317,607

18,48925,94845,01453,24023,662

16,883

9,277

11,042

363,439424,722

NCF

1,216,691

1,198,166

536,997641,236

743,885

866,449

757,567

772,827

361,550

357,9363,616,692

3,836,617

Period-end book value

68,192,339

72,990,225

15,205,216

18,149,070

33,145,227

38,563,547

29,897,972

29,769,782

20,395,940

NOI
Depreciation
Operating income (loss)
from real estate leasing
Capital expenditures

20,325,088 166,836,697 179,797,713

50

Note
P.22

P27

P40

（Note1）“DBJ Green Building Certification” is a certification under the framework system (hereinafter, “the framework”) established by Development Bank of Japan Inc. (hereinafter, “DBJ”)
in April 2011 to support properties with environmental and social awareness (“Green Building”). The framework rates and certifies properties required by society and the economy
based on a comprehensive assessment covering items from environmental performance of properties to measures for various stakeholders including disaster prevention andconsideration for local communities, and supports such initiatives. Japan Real Estate Institute (JREI) has conducted certification, while DBJ has controlled the overall framework
since August 2017. The framework has five levels of certification (★ ~ ★★★★★).

（Note 2）

“BELS” is Under the Act on the Improvement of Energy Consumption Performance of Buildings (“Building Energy Efficiency Act”), real estate business operators are required tomake efforts to display the energy-saving performance of buildings. BELS is a system in which third-party institutions evaluate the energy-saving performance of buildings basedon the evaluation standards set by the Ministry of Land, Infrastructure, Transport and Tourism, and the certification rating is given on a five-star scale (★ to ★★★★★).

（Note 3）“Green lease contracts” indicates the lease contracts stating that the lessor and the tenant jointly determine rules including reduction of environmental burdens such as energy
saving of properties and improvement of working environment by concluding contracts, memorandums, etc., and implement such rules.

（Note 4）

“Acquired from Star Asia Group” refers to the properties acquired or to be acquired from the sponsor group, including properties previously held by SSR, out of a total of 67
properties, including properties acquired by SAR up to the date of this document (including properties already sold) (total acquisition price of 196.4 billion yen). Acquisitions from
SPC in which funds managed by Star Asia Group are investing in silent partnerships as part of its provision of warehousing function andacquisitions using sponsor forward commitment are excluded. The 18 properties acquired through the Merger are included in properties acquired from Star Asia Group.。

（Note 5）

“Properties acquired with support by Star Asia Group” are the properties for which Star Asia Group provided support, such as warehousing, securing properties through sponsor
forward commitment, investment in equity interest in a silent partnership for SPC holding properties (including the minority investment), etc. of the 67 properties acquired by SAR
up to the date of this document (including properties already sold) and the properties to be acquired (total price of 196.4 billion yen).

（Note 6）

As of the date of this document, the SPC belonging to the Sponsor Group owns the land for the housing development project, and the confirmation for construction of the building
has already been obtained and construction work has commenced. SAR does not plan to acquire such development projects, etc., and there is no guarantee that SAR will beable to acquire it in the future as of the date of this document.

（Note 7）

"Appraisal value" of properties under management by Star Asia Group is calculated based on the appraisal value stated in the latest appraisal report of properties undermanagement by Star Asia Group (of the assets held by Star Asia Group as of the end of February 2022, those that are real estate, and do not fall under any of the SAR’s assets
currently held, Assets to be Acquired, assets for which SAR holds preferential negotiation rights as of the end of February 2022, or assets held by Polaris Holdings or its
consolidated
subsidiaries. The same applies hereinafter). As of the date of this document, SAR does not plan to acquire any of the properties under management by Star Asia Group, andthere is no guarantee that such properties will be acquired in the future.

（Note 8）“Portfolio appraisal NOI yield” is the ratio of the sum of net operating income (NOI) calculated based on the direct capitalization method inreal estate appraisal reports to the total acquisition price of the properties held as of January 31, 2022 (End of 12th FP) the ratio of the sum of net
operating income (NOI) calculated based on the direct capitalization method in real estate appraisal reports to the total anticipated acquisition price of the Assets to be Acquired.
The same shall apply hereinafter.

（Note 9）

“Post-depreciation appraisal NOI yield” is the ratio of the sum of net operating income (NOI) calculated based on the direct capitalization
method in real estate appraisal reports less depreciation cost anticipated by the Asset Manager to the total acquisition price of the properties held as of January 31, 2022 (End of
12th FP).The same shall apply hereinafter.

（Note 10） “Ratio of Assets in Tokyo area” is the ratio of total acquisition price of SAR assets located in Tokyo area as of January 31,2022 (End of 12thFP) to the total acquisition price of all of the SAR assets as of January 31, 2022 (End of 12th FP).rounded to one decimal place.

（Note 11） “Raito of Mid-size assets” is to SAR’s total assets, based on acquisition prices, for “Assets to be Acquired”, theratio of “mid-size assets” among the Assets to be Acquired to all the Assets to be Acquired, based on Anticipated Acquisition prices. The same shall apply hereinafter.
（Note 12） “Ratio of Assets Acquired from Sponsor Group” is , the ratio of the total acquisition price of the properties acquired from the Sponsor Group (excluding the properties succeededfrom SSR through the Merger and acquired using warehousing functions or sponsor forward commitment. ) held as of January 31, 2022 (End of 12th FP) to the total acquisition
price of the properties held as of January 31, 2022 (End of 12th FP) (excluding the properties succeeded from SSR through the Merger).

51

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
52