Securities Code

Picture on the coverSemi-Annual
ReportGarden City Shinagawa Gotenyama
Gotenyama SH Building
Prime Maison Gotenyama East
Prime Maison Gotenyama West
Garden City Shinagawa Gotenyama, a flagship property of Sekisui House Reit, Inc.,and Gotenyama SH Building, Prime Maison Gotenyama East and Prime Maison
Gotenyama West located in the neighborhood are developed by Sekisui House as alarge-scale complex, Gotenyama Project. The project was granted environmental
awards from public institutions for its creation of a large-scale greening that
contributes to the natural restoration of the local area.

3309

11

4-15-1, Akasaka, Minato-ku, Tokyoth
Fiscal Period

https://sekisuihouse-reit.co.jp/en/(From November 1, 2019 to April 30, 2020)

Sekisui House Reit, Inc.

Corporate Philosophy of Sekisui House Reit, Inc.
Sekisui House Reit, Inc. shares a corporate philosophy with Sekisui House andaims to “provide high quality social capital” and “maximize unitholder value”

Contents
Overview of SHR ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙1Statement of Cash Distributions ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙46

Financial Section (Audited) ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙40Statement of Cash Flows ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙47

Financial Statements ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙41

Notes to Financial Statements ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙48

Balance Sheet ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙41

Supplementary Schedules ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙64

Statement of Income and Retained Earnings ∙ ∙43

Independent Auditor’s Report ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙75

Statement of Changes in Net Assets ∙ ∙ ∙ ∙ ∙ ∙44Unitholder Information ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙77

Overview of SHR

Performance Highlights

Message to Our Unitholders

Distribution per Unit
I would like to express our sincere gratitude for your continued and loyal patronage.
I hereby report on the management status and financial
results for the 11th fiscal period ended April 2020 of
Sekisui House Reit, Inc. (“SHR”).

1,665 yen

Distribution per Unit (Actual)
11th Fiscal Period Ended April 2020

Business Results and Distribution
10th FP
ended Oct. 2019
(Actual)11th FP
ended Apr. 2020
(Actual)12th FP
ending Oct. 2020
(Forecast) (Note)

13th FP
ending Apr. 2021
(Forecast) (Note)

Operating revenue(million yen)

14,683

14,59014,847

14,939Operating income(million yen)

8,226

7,874

7,779

7,897

Ordinary income(million yen)

7,406

6,991

6,886

6,958

Net income(million yen)

7,405

6,991

6,885

6,958

Distribution per unit
(yen)

1,631

1,665

1,664

1,663

Fiscal Period(Note)The respective figures for “12th FP ending Oct. 2020 (Forecast)” and “13th FP ending Apr. 2021 (Forecast)” are as of June 15, 2020 (the announcement date of business results) calculated
based upon certain assumptions. Actual operating revenue, operating income, ordinary income, net income and distribution per unit may differ materially due to various factors. The above
forecasts are not intended to be guarantees of business results or the actual amount of distribution.

Operating Revenue / Net Income(million yen)

16,00014,00014,683Distribution per Unit

Operating revenue

Net income

14,847

14,93914,590

(yen)

2,000

1,631

1,665

1,664

1,663

1,500

12,000

7,405

1,000
6,991

6,885

6,958

6,000
500

4,000

As a result of the above, management performance forthe fiscal period under review resulted in operating revenue of 14,590 million yen, operating income of 7,874
million yen, ordinary income of 6,991 million yen and net
income of 6,991 million yen, and the distribution per unit declared for the fiscal period was 1,665 yen.
SHR has conducted real estate management taking ESG into consideration to realize a sustainable society. In
March 2020, SHR received highest rated “Rank S” in Certification for CASBEE for Real Estate for Akasaka Garden City owned by SHR to be evaluated working on its energy conservation efforts, having high earthquake resistance, and introducing a variety of tree species, mainly native species. In addition, SHR has strengthened governance, by increasing linkage between the profit of unitholders and the amount of management fees paid tothe asset management company by introducing management fee structure linked to total assets and investment
units performance from 12th fiscal period in which the rate of asset management fee I changes depending on
performance of SHR’s investment unit prices compared to TSE REIT index .
The spread of COVID-19 has had a major impact on economic activity worldwide. As a response, SHR and
Sekisui House Asset Management, Ltd.(“SHAM”) have implemented various measures to protect primarily
health and safety of stakeholders. For example, SHR is providing support to tenants by allowing them to postpone rent payments, and SHAM is promoting initiative to avoid 3C (closed spaces, crowded places andclose-contact setting) by introducing system of working from home and more flexible working hours.
Unpredictable situation has been continued because COVID-19 has influenced in various industries in the world.
However, SHR has promoted to realize “provide high quality social capital” and “maximize unitholder value”
that are our corporate philosophy by taking necessary measures while closely monitoring future trends.
I ask for the continued support and encouragement of unitholders.

10,0008,000

In the fiscal period under review, SHR acquired Esty Maison Shizuoka Takajo (Shizuoka-shi, Shizuoka) (residential
property) in January 2020, The Ritz-Carlton, Kyoto whichis the highest-end brand hotel of the Marriott International, Inc., (additional acquisition: 9% of quasi co-ownership interest) (Kyoto-shi, Kyoto) and GRAND MAST
Hirose-dori (Sendai-shi, Miyagi) (residential property) in
April 2020, from Sekisui House Group.
As a result, SHR owns 121 properties and its asset size is532.9 billion yen (245.5 billion yen for office buildings,
248.0 billion yen for residential properties and 39.3 billion
yen for hotels).
As for the occupancy rate as of the end of the 11th fiscal
period ended April 2020, the office buildings at 100.0%,
the residential properties at 96.6%, the hotels at 100.0%,
and the portfolio as a whole at 97.6% and continued tomaintain high levels.

2,000

July 20200

1

0
10th FP
ended Oct. 201911th FP
ended Apr. 2020

12th FP
ending Oct. 2020

13th FP
ending Apr. 2021

10th FP
ended Oct. 201911th FP
ended Apr. 2020

12th FP
ending Oct. 2020

13th FP
ending Apr. 2021

ActualActualForecast

Forecast

ActualActualForecast

Forecast

Junichi Inoue
Executive Director of Sekisui House Reit, Inc.
President & Representative Director of
Sekisui House Asset Management, Ltd.

2

Overview of SHR

Key Indicators

Investment Policy
As of June 15, 2020 (the announcement date of business results)

Overview of Portfolio

Investment Strategies
Prime Properties centered on “Strategic Location” and “High Quality”

Number of owned properties

Total acquisition priceTotal appraisal value(as of the end of the 11th FP ended Apr. 2020)

121 properties 532.9 billion yen 600.5 billion yen
Occupancy rate

Ratio of Prime Properties(as of the end of May 2020)(acquisition price basis)97.2 %
Usage type ratio(Note1)
Hotel
7.4%
(2 properties)

Nagoya area
4.3%
(10 properties)

Residential Properties

Sites suited for “bases forsustainable living” for residents

Commercial Properties

Sites suited for “sustainable bases ofoperation” of tenant companies

1.58 %
15 years or more
8.6%
(17 properties)

Under 5 years
6.3%(11 properties)

Osaka area
26.7%
(13 properties)

532.9 billion yen

Office building
46.1%(7 properties)

Residence
46.6%(113 properties)

Financial Status

Three Major
Metropolitan Areas

95.4%

10 years ormore but lessthan 15 years
40.8%(74 properties)

Averagebuilding age

10.6 years

Greater Tokyo
64.3%(82 properties)

Japan Credit Rating Agency, Ltd. (JCR)

AA (Stable)

Long-term debt ratio

Fixed interest rate debt ratio

91.4 %

Residence

As of Jun. 15, 2020
Investment ratio
Examples of specific asset types (acquisition price basis) (the announcement dateof business results)

AA-

Target investment
ratio in the medium
to long term

Residences
Student dormitories
Company housings

30%-55%

46.6%

Approx. 45%

Office buildings
Data centers

30%-55%

46.1%

Approx. 45%

Hotels0%-30%

7.4%

Approx. 10%

Retail properties
Serviced apartments
Senior properties (Note)

0%-10%-

Approx. 0%-10%

Office building(Note) Housings for the elderly with services, Fee-based homes for the aged and Daycare centers are included in Senior properties.

Investment Ratio in Priority Investment Area by Asset Category
Set priority investment areas and investment ratio in light of the characteristics of each asset category.

(Stable)As of Jun. 15, 2020
Investment ratio(the announcement date(acquisition price basis)of business results)

Asset category

Priority investment area

Residential Properties

Greater Tokyo

70% or higher

76.8%

Commercial Properties

Three Major Metropolitan Areas(Greater Tokyo, Osaka area, Nagoya area)

80% or higher

100.0%

Rating and Investment Information, Inc. (R&I)(Note 1) “Hommachi Garden City” is calculated by treating the office building portion as one property and hotel portion as one property according to the usage type of the building under compartmentalized ownership for calculating “Usage type ratio,” and the entire building as one property for calculating “Area ratio” and “Building age ratio”.
(Note 2) The “Three Major Metropolitan Areas” refer to “Greater Tokyo”, “Osaka area” and “Nagoya area.” The “Greater Tokyo” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture, and Saitama
Prefecture; the “Osaka area” refers to Osaka Prefecture, Kyoto Prefecture, Hyogo Prefecture, and Nara Prefecture; and the “Nagoya area” refers to Aichi Prefecture. The same shall apply
hereinafter.
(Note 3) “Esty Maison Yokohama-aobadai” is counted as two properties the “North” and the “South”, which were completed in different time, when calculating diversification by “Building age ratio”.

3

Residential
Properties

Retail and other properties(as of the end of the 11th FP ended Apr. 2020)

98.0 %

Usage typeHotel

LTV (total asset basis)45.1 %In addition to the functionality sought by tenant companies, giveconsideration to the environment as a societal request and establish
specifications suitable for BCP sites to make comprehensive determinations regarding buildings suited to neighborhoods and the like.

Build a portfolio with “residences” as “the sustainable bases of living for residents” and “office buildings” as “the sustainable basesof operation for business", as core assets, while promoting investment in hotels that are expected to achieve continuous growth.

Commercial
Properties

Credit Rating

As residences, provide high-class fundamental functionality, suchas comfort and safety, and give due consideration to the environment as a societal request to make comprehensive determinations
regarding buildings suited to neighborhoods and the like.

Investment Ratio by Usage TypeCore assets
5 years ormore but lessthan 10 years
44.4%(20 properties)

High quality

Portfolio Development Policy

Assetcategory

Asset size

Strategic location(surveyed in Apr. 2020)

Building age ratio(Note1) (Note3)

Others4.6%(16 properties)

Asset category

Portfolio PML value

91.3 %
Area ratio(Note1) (Note2)

Designate "high quality" residential properties and commercial properties located in "strategic location" as "Prime Properties",and continue to invest primarily in Prime Properties with the aim of enhancing the quality of the portfolio.

Investment Policy for Hotel
Invest in hotels which can be expected to be highly competitive over the medium to long term (simplified accommodations
and the like are in principle not be invested.)
Invest primarily in hotels regarded as Prime Properties4

Overview of SHR
Sapporo-shi Residence/

Portfolio Map

3 properties

As of June 15, 2020 (the announcement date of business results)

Major Owned Properties

82 properties
14 properties
Osaka area
Nagoya area 10 properties
16 properties
Others

Office Building

Greater Tokyo

Greater Tokyo

Residence(Note)

Greater Tokyo
Office building/

Hotel

Residence/

3 properties

79 properties
Osaka Area

Nagoya area

■ Akasaka GC■ Gotenyama SH Building■ GC Shinagawa Gotenyama

Fukuoka-shi

Kanazawa-shi

Residence/

Residence/

8 properties

1 property

Office building/Residence/

1 property

Acquired in 11th FP

9 properties

Kitakyushu-shi

Yokkaichi-shi

Sendai-shi

Residence/

Residence/

Residence/

1 property

1 property

1 property■ The Ritz-Carlton, Kyoto (additional acquisition)

Shizuoka-shi■ PM Hongo■ PM Kuramae■ PM Mitatsunamachi

Osaka area(Note)
Office building/Residence/
Hotel/■ PM Shinagawa■ PM Ginza East

Residence/

1 property

3 properties

Nagoya Area

9 properties■ Hommachi Minami GC ■■ Hommachi GC■ HK Yodoyabashi GA■ PM Kitatanabe■ Kobe Women’s Student
Housing

2 properties■ PM Musashinonomori■ Hirokoji GA■ PM Higashisakura■ PM Gokiso■ PM Yuhigaoka

OthersAcquired in 11th FP■ PM Gotenyama East

■ PM Daikanyama■ PM Gotenyama West

■ EM Toyosu Residence■ PM Odorikoen■ PM Asakusabashi

5■ PM Ebisu■ PM Yokohama Nihon-odori ■ PM Shirokane-takanawa ■ PM Ichigayayamabushicho ■ PM Shirokanedai Tower ■ PM Otsuka■ PM Minami 2-jo

■ PM Kamokamogawa■ MAST Hakata■ PM Central Park

■ EM Shizuoka Takajo■ GM Hirose-dori■ Office Building ■ Residence ■ Hotel PM: Prime Maison EM: Esty Maison GC: Garden City GA: Garden Avenue GM: GRAND MAST
(Note) “Hommachi Garden City,” located in the Osaka area, is calculated by treating the office building portion as one property and hotel portion as one property.

6Overview of SHR

SHR’s ESG Initiatives
ESG Policy

SocialBasic Policy
SHR and SHAM aim to provide “sustainable bases of operation” for tenant companies and “sustainable living basis” forresidents by conducting real estate investment management with due consideration given to the environment, social andgovernance in recognition of the shared responsibility to contribute to the realization of a sustainable society in accordancewith the “Sustainable Vision” advocated by Sekisui House, the sponsor.

“Sustainable Vision”

Consider ESG and conduct realestate investment managementof Sekisui House,
the sponsor

Environmental consideration

Provision of
Sustainable Basis of Operation
for tenant companies

BCP/Safety
Functionality/Livability

Provision of
Sustainable Living Basisfor residents

SHR promotes to install emergency cabinets for elevators and distribute stockpiled emergency supplies to enable tenantcompanies and residents to stay with security and safe. SHR has also contributed to local communities by making effort toimprove convenience, environment awareness and health by installation of AED and introduction of bike share that isavailable to everyone.

Emergency cabinet
for elevators

Stockpiled emergency
supplies to tenants

Prime Maison Gotenyama Eastand others

Esty Maison Ojima and others

Installation of AED

Introduction ofBike Share

Prime Maison Yokohama
Nihon-odori and others

Garden City Shinagawa
Gotenyama

Endorsement of Initiatives and Acquisition of External Certifications
Signing of the Principles for Responsible Investment (PRI)
SHAM has decided to support the basic approaches of the Principles for Responsible
Investment (“PRI”) regarding ESG investment and became a signatory in March 2019.

SHAM is making efforts to reduce overtime work and increase the ratio of employees taking annual paid leave to promote
work-life balance. SHAM is promoting initiative to avoid 3C (closed spaces, crowded places and close-contact setting) byintroducing system of working from home and more flexible working hours as a preventive measure against COVID-19.

2019 GRESB Assessment

Selected as “Sector Leader”
in Asia/Diversified - Office/Residential Sector
GRESB Real Estate Assessment; Acquired “Green Star”

rating for the third consecutive year

DBJ Green Building Certification/Certification for CASBEE for Real Estate
SHR newly acquired Certification for CASBEE for Real Estate for Akasaka Garden City in March 2020 and has
acquired environmental certifications for 52 properties out of the total of 121 owned

properties (55.9% based on the total floor area). Received 3 Stars or
higher in DBJ Green Building Certification or Rank S in Certification for CASBEE for Real Estate for all
certified properties.

SHR recognizes that dealing with environmental issues such as climate change is one of the key management issues. Based on
this recognition, SHR sets targets for the environment-related indicators of owned properties, and introduces environmentallyfriendly facilities, such as LED lighting and energy-saving air conditioner, etc.
Target of Energy Consumption
Reduce energy consumption intensity of our portfolio by 5% or more in 5 years until 2023
Target of CO2 Emission
Reduce CO2 emission intensity of our portfolio by 5% or more in 5 years until 2023
Target of Water Consumption
Maintain water consumption intensity of our portfolio at the level of 2018 in 5 years until 2023
(Note1) The period covered by the environmental targets is 5 years from 2018, which is the base year (until 2023).
(Note2) Calculated using data from April to next March of each year as an annual data.

7

The below Management Fee Structure is introduced to increase linkage between the amount of management fees paid to theasset management company and the profit of unitholders. SHR has strengthened governance by adopting Management Fee I(linked to total assets and investment units performance) that depends on performance of SHR’s investment unit prices(distribution inclusive) compared to TSE REIT index (distribution inclusive) from 12th FP.

Management Fee I(linked to total assets and investment units performance)

Management Fee II(linked to DPU and operating income)Management Fee III

Environment

Targets/
KPI

Governance(acquisition fees)

Management Fee IV(disposition fees)

Management Fee V(merger fees)

Total assets x 0.12~ 0.16% (annual rate)(DPU x Operating income x 0.002%) x 2(Note)
Acquisition purchase price x 0.3%
(Transactions with related parties: None)
Sale price x 0.3%
(Transactions with related parties: None)
Value of Real Estate-Related Assets held by investment
corporation x 0.4%

(Note) As SHR implemented a 2-for-1 split of the investment units with April 30, 2018 as the record date and May 1, 2018 as the effective date, Management
Fee II (linked to DPU and operating income) is calculated by multiplying by 2, which is the split ratio.

For more information in SHR’s ESG, please refer to the website below.

https://sekisuihouse-reit.co.jp/en/esg/index.html
8Outline of asset management operation
1. Developments in Asset Management in the Fiscal Period under Review(1) Brief History of the Investment Corporation
Sekisui House Reit, Inc. (“SHR”) was established on September 8, 2014 as an investment corporation investing
primarily in commercial properties including office buildings, hotels and retail and other properties, sponsored by
Sekisui House, Ltd. (“Sekisui House”), a leading homebuilder representing Japan with an establisheddevelopment and management track record also in the property development business. SHR was listed on theReal Estate Investment Trust Section of the Tokyo Stock Exchange, Inc. (“Tokyo Stock Exchange”) on December
3, 2014 (securities code: 3309).
Sekisui House Residential Investment Corporation (“SHI,” and collectively with SHR, the “Two Investment

Corporations”) was established on April 20, 2005 as an investment corporation investing primarily in residences
and retail properties, with the corporate name of JOINT REIT Investment Corporation, and listed on the Real
Estate Investment Trust Section of the Tokyo Stock Exchange on July 28, 2005. In March 2010, a collaboration

system was established with Sekisui House serving as the main sponsor and Spring Investment Co., Ltd. as joint
sponsor for the investment corporation, which was renamed from JOINT REIT Investment Corporation to Sekisui
House SI Investment Corporation in June 2010. Later, in June 2014, its Articles of Incorporation were revised to
set residences as the sole target of investment, and the corporate name was changed to Sekisui House SI
Residential Investment Corporation. Subsequently, in association with the shift to a structure in which Sekisui
House serves as the sole sponsor in March 2017, SHI was renamed to Sekisui House Residential Investment
Corporation in June 2017.
The Two Investment Corporations, each under the support of the Sekisui House Group(Note 1), had separately
conducted asset management in an effort to expand their assets and secure stable returns by utilizing theirrespective strengths with the aim of continuous enhancement of unitholder value. However, with an aim to securestrong returns and stability and growth of cash distributions through promoting a steady increase of assets undermanagement and endeavor to maximize unitholder value by further expanding the scale of their assets andincreasing their market presence and expanding a variety of opportunities for growth through utilizing the

integrated corporate strength of the Sekisui House Group, the Two Investment Corporations conducted anabsorption-type merger with SHR as the surviving corporation and SHI as the dissolving corporation (the“Investment Corporation Merger”), setting May 1, 2018 as the effective date(Note 2).
SHR’s investment policy is to conduct asset management that seeks to secure stable earnings over the medium tolong term and steady growth of its investment assets, with residential properties(Note 3) and commercial
properties(Note 4) as major investment targets.
(Note 1) “Sekisui House Group” refers to a group of companies comprised of Sekisui House and its consolidated subsidiaries and its
affiliates accounted for by the equity method. The same shall apply hereinafter.
(Note 2) In association with the Investment Corporation Merger, Sekisui House Asset Management, Ltd. (the “former SHAM”), the asset
management company for SHI, and Sekisui House Asset Management, Ltd. (former name: Sekisui House Investment Advisors,Ltd.) (“SHAM”), the asset management company for SHR, carried out an absorption-type merger as of the same date as theeffective date of the Investment Corporation Merger, with SHAM being the surviving company and the former SHAM being thedissolving company, and changed the company name to the current one.
(Note 3) “Residential properties” refer to real estate whose principal use is residence (including student dormitories, company housing,furnished residences with appliances which do not fall under serviced apartments (*1) (*2)). The same shall apply hereinafter.
(*1) “Serviced apartments” refer to furnished residences with appliances where a dedicated operator provides certain services
to users. The same shall apply hereinafter.
(*2) Some serviced apartments may fall under apartment houses as defined in the Building Standards Act (Act No. 201 of 1950,
as amended) (the “Building Standards Act”). The same shall apply hereinafter.
(Note 4) “Commercial properties” refer to real estate whose principal use is for office buildings, hotels and retail and other properties(including serviced apartments, housing for elderly with service, fee-based homes for the aged, and daycare centers (*); the same
shall apply hereinafter.) and other non-residential business purposes. The same shall apply hereinafter.
(*) Some housing for elderly with service, fee-based homes for the aged, and daycare centers may fall under apartment houses
as defined in the Building Standards Act. The same shall apply hereinafter.

9(2) Management Environment and Management Performancea. Management Environment
During the first half of the fiscal period under review (from November 2019 to January 2020; the same shall apply
hereinafter.), the Japanese economy continued to recover moderately from the previous fiscal period amid a
gradual increase in capital against the backdrop of corporate profits, which have remained strong except in someindustries, and steady improvement in the employment and income environment, despite continued weakness inexports and production. However, the Japanese economy has deteriorated rapidly since February 2020 due to theeffects of COVID-19, which began in China in December 2019 and spread around the world, and the outlook
remains unclear.
Under such circumstances, in the real estate leasing market, residences and office buildings, which are positioned
by SHR as core assets of the portfolio and constitute approximately 93% of the portfolio (on an acquisition-pricebasis) as of April 30, 2020 ("as of the end of the fiscal period under review"), continued to have favorable supplydemand conditions and rental demand remained robust. During the first half of the fiscal period under review,hotels that constitute approximately 7% of SHR's portfolio (on an acquisition-price basis) were recognized ashaving a favorable operating environment against the backdrop of steady growth in the number of foreign visitors
to Japan. However, since February 2020, the number of foreign visitors to Japan has declined due to therestrictions on traveling or entering Japan by various countries against COVID-19, and domestic travelers havebeen restrained, which has hindered the operation of hotels.
In the real estate transaction market, investors in Japan and overseas have continued to have a strong desire toacquire properties under accommodative financial conditions, or SHR has seen a shortage of superior properties
that it considers to be an investment target, and expected cap rate has remained at low levels. At present, however,
the outlook is uncertain due to the impact of COVID-19.
b. Management Performance
In an environment in which the properties SHR considers to be investment targets are in short supply, SHR
acquired a hotel developed by Sekisui House and two residential properties developed and owned by Sekisui HouseGroup because they recognize it valuable a total of three properties (one of which was additionally acquired) byutilizing the pipeline support of Sekisui House, which is the sponsor, and the Sekisui House Group, which iscentered on Sekisui House.
House, .
These transactions brought the number of properties SHR owned as of the end of the fiscal period under review
to 121 (comprising 113 residential properties and 8 commercial properties) with an aggregate acquisition price(Note)of 532,910 million yen (248,090 million yen for residential properties and 284,820 million yen for commercial
properties).
Moreover, the occupancy rate of SHR’s
SHR’s investment
investment assets
assets as
as ofof thethe endend ofof thethe fiscal
fiscal period
period under
under review
review stood
stood atat96.6% for residential properties, 100.0% for commercial properties and 97.6% for the entire portfolio against the
backdrop of the real estate leasing market as described above.
(Note) The “acquisition price” indicates the transaction price shown in the sales agreements for respective properties (excluding
consumption tax, local consumption tax and commission and other various expenses, rounded down to the nearest million yen).
For properties SHR succeeded from SHI through the Investment Corporation Merger, however, the value based on the appraisal
by real estate appraisers with April 30, 2018 as the appraisal date is used as the acquisition price, because the acceptance priceshould be the appraisal value upon the acquisition by SHR as such properties are accounted for by the purchase method with
SHR set as the acquiring corporation and SHI as the acquired corporation. The same shall apply hereinafter.

(3) Overview of Fund Procurement
a. Borrowings and Issuance of Investment Corporation Bonds

On November 29, 2019, SHR refinanced long-term borrowings with total amount of 14,000 million yen due forrepayment on November 30, 2019, at fixed interest rate long-term borrowings (of which 13,200 million yen was
long-term borrowings with floating interest rates, but interest rates were effectively fixed by establishing interest
rate swaps). On January 31, 2020, SHR procured a short-term borrowing in the total amount of 600 million yen
to use as funds for partial payment on the acquisition of the real estate trust beneficiary interests and related
expenses. SHR carry out 7,392 million yen of long-term borrowings at a fixed interest rate (of which 3,350 million
yen was long-term borrowings with floating interest rates, but interest rates were effectively fixed by establishinginterest rate swaps) on February 28, 2020 to repay the above short-term borrowing of 600 million yen before
maturity and to repay long-term borrowings of 6,792.5 million yen, which were due for repayment on the same10

date. In addition, on April 20, 2020, SHR procured a short-term borrowing in the total amount of 5,100 million
yen to use as funds for partial payment on the acquisition of the real estate trust beneficiary interests and quasi

co-ownership interest of trust beneficiary interest, and related expenses. Regarding investment corporation
bonds, SHR issued green bonds on November 1, 2019 and February 28, 2020 respectively (the issuance amount2.

Status of Capital Increase, etc.
The following table sets forth the increase (/decrease) in unitholders’ capital and the total number of investment
units issued and outstanding since in the last five years.

of the fifth investment corporation bonds is 5,000 million yen and the issuance amount of the sixth investment

corporation bonds is 2,000 million yen), and using the funds from this bonds and cash on hand, 5,000 million yen
out of the short-term borrowing of 31,160 million yen procured on June 10, 2019 was repaid before maturity on
November 5, 2019 and investment corporation bonds amounting to 2,000 million yen
redemption on February 28, 2020 were redeemed.

Date

Event

which were due for

As a result, fixed interest rate debt ratio in interest-bearing liabilities became 91.4% at the end of the fiscal

period under review from 91.2% at the end of the previous fiscal period. The balance of interest-bearing liabilities
at the end of the fiscal period under review is 249,942 million yen and the ratio of total interest-bearing liabilities
to total assets (“LTV (total assets basis)”) is 45.1%.
b. Credit Rating

SHR announced that it newly acquired credit rating from Rating and Investment Information, Inc. (R&I) on
November 18, 2019.
The following table sets forth the status of credit ratings of SHR as of the end of the fiscal period under review.

Increase(Decrease)

Balance

Increase(Decrease)

Note

Balance

May 24, 2016

Public offering

11,70699,45095,200889,200(Note 1)

June 21, 2016

Third-party allotment

590

100,040

4,800

894,000(Note 2)

May 24, 2017

Public offering

9,661

109,70271,400965,400(Note 3)June 12, 2017

Third-party allotment

487

110,1893,600

969,000(Note 4)

May 1, 2018

Split of investment units―

110,189

969,000

1,938,000(Note 5)

May 1, 2018

Allocation of investment
units through merger―

110,189

1,824,091

3,762,091(Note 6)

June 10, 2019

Public offering

37,162

147,351

501,500

4,263,591(Note 7)

July 9, 2019

Third-party allotment

1,858

149,21025,075

4,288,666(Note 8)Credit Rating Agency

Rating TypeJapan Credit Rating Agency, Ltd.
(JCR)

Long-term issuer rating: AA
Rating outlook: Stable

Japan Credit Rating Agency, Ltd.
(JCR)

Bond rating: AA(Note 1)Rating and Investment Information, Inc.
(R&I)

Issuer rating: AARating outlook: Stable(Note 2)(4) Overview of Business Performance and Distributions
Results in the fiscal period under review are operating revenue of 14,590 million yen, operating income of 7,874
million yen and ordinary income of 6,991 million yen, resulting in net income of 6,991 million yen. In addition,
concerning cash distributions, SHR decided to distribute 7,140 million yen, which is the amount of unappropriatedretained earnings after adding reversal of reserve for temporary difference adjustments (119 million yen) andreversal of reserve for reduction entry (29 million yen) based on the application of special tax treatment forinvestment corporations (Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957,
as amended) (the “Special Taxation Measures Act”)).

Total number ofinvestment units
issued and outstanding(units)Unitholders’ capital(million yen)

(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)New investment units were issued at an issue price of 127,140 yen (with the issue amount being 122,967 yen) per unit through apublic offering to procure funds for the acquisition of new properties.
New investment units were issued at an issue amount of 122,967 yen per unit by way of third-party allotment and proceeds thereof

were intended to be used to make future partial repayment of loans or as part of future acquisition funds for specified assets.
New investment units were issued at an issue price of 139,912 yen (with the issue amount being 135,320 yen) per unit through apublic offering to procure funds for the acquisition of new properties.
New investment units were issued at an issue amount of 135,320 yen per unit by way of third-party allotment, with the proceeds
thereof intended to be used for the partial repayment of the short-term loans that had been taken up to finance the acquisition of the
new properties.
SHR implemented a two-for-one split of investment units with April 30, 2018 as the record date and May 1, 2018 as the effective date.
Upon the Investment Corporation Merger, 1.65 SHR units following the investment unit split were allocated to every SHI unit on
May 1, 2018 and 1,824,091 investment units were newly issued.
New investment units were issued at an issue price of 76,537 yen (with the issue amount being 74,103 yen) per unit through a public
offering to procure funds for the acquisition of new properties.
New investment units were issued at an issue amount of 74,103 yen per unit by way of third-party allotment, with the proceeds
thereof intended to be used for the partial repayment of the short-term loans that had been taken up to finance the acquisition of the
new properties.

[Changes in Market Price of Investment Securities]
The following table sets forth the fiscal period high and low (closing price) on the Tokyo Stock Exchange Real
Estate Investment Trust Section on which SHR investment securities are listed.
7th fiscal period
Before the exrights date

After the exrights date

8th fiscal
periodFiscal period From: Nov. 1, From: Apr. 25, From: May 1,
2018
2018
2017
To: Oct. 31,
To: Apr. 30,
To: Apr. 24,
2018
2018
2018

9th fiscal
period10th fiscal
period11th fiscal
periodFrom: Nov. 1,
2018
To: Apr. 30,
2019

From: May 1,
2019
To: Oct. 31,
2019

From: Nov. 1,
2019
To: Apr. 30,
2020

High (yen)149,100

70,50073,90085,400103,700

99,700Low (yen)

123,700

69,70068,20067,10077,20047,150(Note) SHR implemented a two-for-one split of investment units with April 30, 2018 as the record date and May 1, 2018 as the effective date.

11

12

3.

Performance of Distribution, etc.
Distribution per unit for the fiscal period under review (the 11th fiscal period) is 1,665 yen. The policy is to
distribute 7,140 million yen, which is the amount of unappropriated retained earnings after adding reversal of

4. Future Management Policy(1) Future Trends Outlook
In response to the spread of COVID-19, the Government of Japan issued a declaration of a state of emergency inrelation to the novel coronavirus disease as of April 7, 2020, based on Article 32, Paragraph 1 of the Act on Special
Measures for Pandemic Influenza and New Infectious DiseasesPreparedness and Response (Act No. 31 of 2012,

reserve for temporary difference adjustments (119 million yen) and reversal of reserve for reduction entry (29million yen) in application of the special treatment of corporation tax under which the amount equivalent to
distribution of earnings is deductible from the taxable income of investment corporations as deductible expenses(Article 67-15 of the Special Taxation Measures Act).

Fiscal period
Total amount of unappropriatedretained earnings (thousand yen)Amount of accumulated earnings(thousand yen)
Total amount of cash distribution(thousand yen)[Distribution per unit] (yen)Total amount of distribution of
earnings out of the total amount ofcash distribution(thousand yen)[Distribution of earnings per unit](yen)
Total amount of refund ofinvestment in capital out of thetotal amount of cash distribution(thousand yen)[Amount of refund of investment
in capital per unit] (yen)Total distribution amount fromreserve for temporary difference
adjustments out of total amount ofrefund of investment in capital(thousand yen)[Distribution amount from reserve
for temporary difference
adjustments per unit out of
amount of refund of investment
in capital per unit] (yen)Total distribution amount from
distribution reducing unitholders’capital for tax purpose out of total
amount of refund of investment incapital (thousand yen)[Distribution amount from
distribution reducing unitholders’capital for tax purpose out of
amount of refund of investment incapital per unit] (yen)13

7th fiscal period 8th fiscal period 9th fiscal period 10th fiscal period 11th fiscal period
From: Nov. 1,
From: May 1,
From: Nov. 1,
From: May 1,
From: Nov. 1,
2019
2017
2018
2018
2019
To: Apr. 30, 2018 To: Oct. 31, 2018 To: Apr. 30, 2019 To: Oct. 31, 2019 To: Apr. 30, 2020
2,621,502

7,403,117

5,894,142

7,405,454

6,991,331

357

1,556,827―

775,495－

2,621,145

5,846,289

5,996,773

6,994,814

7,140,628[2,705][1,554][1,594][1,631][1,665]2,621,145

5,846,289

5,996,773

6,994,814

7,140,628[2,705][1,554][1,594][1,631][1,665]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

as amended), and requested seven prefectures to implement various measures, including voluntary restraint ofgoing out. Subsequently, after the expansion and extension of the implementation period of the declaration andthe lifting of the declaration in some implementation areas, the declaration was terminated by all prefectures asof May 25, 2020. As of the date of this document, the Government of Japan is making the decision to graduallyrelax various measures, such as voluntarily refraining from going out, in accordance with trends in the numberof infected people. Various effects on economic activities due to the spread of COVID-19, including during thedeclaration period, such as the suspension of operations and the shortening of operating hours by some businesscategories, remain, and it will take a certain period of time to return to the situation before the spread of COVID-

19, including concerns about the spread of the infection (the second wave).
Despite these circumstances, SHR believes that demand for residence and office building, which are living andoperation bases in the real estate leasing market, will continue to be firm in general, but SHR considers that the
impact of COVID-19 on tenant trends needs to be watched closely. On the other hand, with the spread of COVID19 worldwide, the demand for hotel rooms is expected to remain severe for the time being due to factors such as
the postponement of the Tokyo Olympic and Paralympic Games scheduled for 2020, the decrease in the numberof foreign tourists visiting Japan due to the restrictions on travel and entry of each country, and the voluntary
restraint on domestic travel.
After the Japanese government issued the declaration, temporary closures and closures were observed in someof SHR's retail tenants in residencial properties and office buildings tenants and, as well as in two hotels of
SHR’s portfolio. In the future, similar measures will be taken by tenants depending on the situation of COVID19. Therefore, it is necessary to pay close attention to the impact of COVID-19 on the economic activities oftenants.
In the real estate transaction market, SHR expects the cap rate to remain low for the foreseeable future, but
SHR believes that it is necessary to carefully assess the situation of COVID-19 (including the period required forthe conclusion of the pandemic and the degree of economic recovery after the end of the pandemic).
(2) Future Management Policy and Challenges to Address
SHR will continue to focus on prime properties―high-quality residential properties and commercial properties
situated in strategic locations―as its core investment targets among other main investment targets. By
implementing growth strategies that take full advantage of the real estate development and operation capabilities
and other strengths of the Sekisui House Group, which has established an extensive track record of developing
and operating residential properties and commercial properties, SHR will seek to secure stable earnings over the
medium to long term and steady growth of its investment assets and thereby aim to maximize unitholder value.
On the other hand, SHR will endeavor to expand its asset size by exploring investment opportunities through theinitiatives of SHAM on its own.
Concerning main investment target areas in Japan for residential properties, SHR has set Greater Tokyo(Note 1) as
the core investment area with a focus on the Tokyo 23 wards, which are believed to have a number of prime
properties that offer locations accommodating residents’ needs as well as excellent basic functions as a residence
including comfort and safety and such and are expected to see strong leasing demand and supplies of prime
properties. In addition, SHR will invest in other major cities throughout Japan outside of Greater Tokyo including
government designated cities as well as their surrounding commutable areas, where networks of Sekisui Houseand Six Sekisui House Real Estate Companies(Note 2) can be fully utilized.
SHR has set the three major metropolitan areas(Note 1) with three large cities, namely the Tokyo 23 wards, Osaka
City and Nagoya City, all of which SHR has knowledge in the course of developments by Sekisui House, as thecore investment areas in Japan for commercial properties, with a focus on the three large cities, in which SHR
can expect stable management against the backdrop of solidified demand resulting from being bases for tenantcompanies’ business activities. In addition, major cities throughout Japan other than the three major metropolitan
areas are set as investment areas.
SHR has executed a sponsor support agreement with Sekisui House. This agreement provides for utilization of14

the urban redevelopment business track record and know-how of Sekisui House, allowing SHR to seek fromSekisui House property acquisition support for external growth (pipeline support). Specifically, such support will(a) grant to SHR preferential negotiation rights with regard to the sale of domestic real estate, etc. owned ordeveloped by Sekisui House, (b) provide SHR with information on real estate, etc. owned or developed in Japanby third parties, (c) provide SHR with warehousing functions, and (d) provide SHR with support for theredevelopment of owned properties.
Furthermore, SHR has concluded agreements concerning preferential negotiation rights (and others) with the Six
Sekisui House Real Estate Companies. Thus, particularly with residential properties, SHR will be able to receive
support in acquiring properties for external growth, such as granting of preferential negotiation rights regarding
sale of domestic real estate, etc. owned or developed by the Six Sekisui House Real Estate Companies.

5.

Significant Subsequent Events
Not applicable.
(Reference Information)(1) Borrowing of Funds
SHR conducted the following borrowing of funds on May 29, 2020 for use as repayment funds of a short-termborrowing (8,000 million yen) which was due for repayment on May 29, 2020.

Category

Lenders(Note 1)

Sekisui House and Sekisui House Real Estate Group(Note 3) possess (a) property management (“PM”) skills basedon their relationship with tenants, (b) know-how as a real estate developer to maintain/improve real estate value
through large-scale repair, renovation/value enhancement, redevelopment, etc., and (c) know-how on developing

various types of master leasing businesses. SHR and SHAM can, by concluding a PM services consignment
agreement (“PM Agreement”) or a sponsor support agreement with Sekisui House, seek (a) property management
services for commercial properties, and (b) in relation to management of owned assets for internal growth, (i)technologies and know-how that contribute to the improvement of tenant satisfaction or other factors, including

MUFG Bank, Ltd.

Longterm

Sumitomo Mitsui
Banking
Corporationenergy efficiency and eco-friendliness, that contribute to the renovation/value enhancement of properties, (ii)personnel support, including provision of know-how required for the operation of SHR, and (iii) support in areas
such as negotiation of master lease agreements with regard to commercial properties. Furthermore, Sekisui House
Real Estate Group possesses PM skills, including know-how on PM services proven by tenant solicitation utilizing
its nationwide network and an abundant management track record. As such, SHR will capitalize on the PM skills
possessed by Sekisui House Real Estate Group by concluding a PM Agreement with Sekisui House Real EstateGroup for residential properties.

(Note 1) The “three major metropolitan areas” refer to “Greater Tokyo,” the “Osaka area” and the “Nagoya area,” where “Greater
Tokyo” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture, the “Osaka area” refers to Osaka
Prefecture, Kyoto Prefecture, Hyogo Prefecture and Nara Prefecture and the “Nagoya area” refers to Aichi Prefecture. The
same shall apply hereinafter.
(Note 2) “Six Sekisui House Real Estate Companies” is a collective name for Sekisui House Real Estate Tokyo, Ltd., Sekisui House
Real Estate Tohoku, Ltd., Sekisui House Real Estate Chubu, Ltd., Sekisui House Real Estate Kansai, Ltd., Sekisui House
Real Estate Chugoku&Shikoku, Ltd. and Sekisui House Real Estate Kyushu, Ltd., which are wholly-owned subsidiaries of
Sekisui House and are core companies of real estate unit of the Sekisui House Group operating nationwide. The same shallapply hereinafter.

(Note 3) “Sekisui House Real Estate Group” refers to a group of companies comprised of Six Sekisui House Real Estate Companies as
the core, and of its subsidiaries and affiliates. The same shall apply hereinafter.

(3) Financial Strategy
SHR has adopted as its policy the conduct of stable and sound financial operations in order to secure stableearnings over the medium to long term and enhance unitholder value. Specifically, the policy is to form strong andstable business relationships with leading domestic financial institutions, centering on megabanks, bolstered by
the creditworthiness of the sponsor, Sekisui House, and also to reduce refinancing risks and risks of fluctuationsin interest rates by exploring the extension of borrowing periods and working to diversify dates for repayment,
etc., while pursuing the optimum balance between fixed-rate and floating-rate debts.

Mizuho Bank, Ltd.

Total

Loan
Amount(millionyen)Interest rate
(Note 2) (Note 3)(Note 4) (Note 5)

Borrowing
methodMay 29,2020

Borrowing basedon individualloan agreement,
dated May 26,
2020. The
lenders under
the loanagreement are as
indicated to theleft of this table.

May 31,
2021

－

－

－

3,109
Base rate(JBA 1-month
2,534Japanese Yen
TIBOR) plus
0.170%
2,357

8,000

－

Repayment Repayment
methoddate

Drawdown
date(Note 6)

Security(Note 7)Lump-sum
Unsecured
repayment
andat maturity Unguaranteed－－(Note 1) MUFG Bank, Ltd., Mizuho Bank, Ltd. and Sumitomo Mitsui Banking Corporation are arrangers of the above borrowings.
(Note 2) The borrowing expenses and other charge payable to the lenders are not included.
(Note 3) The base rate applicable to the calculation period for the interest payable on an interest payment date shall be the 1-month Japanese(Note 4)(Note 5)(Note 6)(Note 7)

Yen TIBOR (Tokyo InterBank Offered Rate) published by the Japanese Bankers Association (JBA) TIBOR Administration two
business days prior to the immediately preceding relevant interest payment date. The base rate is subject to review every interest
payment date. Where no rate that corresponds to the interest calculation period exists, the base rate shall be that which corresponds
to the concerned period calculated based on the method provided for in the relevant individual loan agreement.
The first interest payment date was the last day of June 2020. Subsequent interest payment dates will be the last day of every
month and the principal repayment date. Where the relevant date is not a business day, such date will be the immediately following
business day or (if the immediately following business day falls into the next calendar month) the immediately preceding businessday.
The first interest calculation period is from May 29, 2020 to the last day of June 2020.
Where the repayment date is not a business day, such date will be the immediately following business day or (if the immediately
following business day falls in the next calendar month) the immediately preceding business day.
SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of the loans (inwhole or in part), in the period between the drawdown date and the repayment date.

In addition, with regard to LTV (total assets basis), although SHR has the policy to set the figure at 60% as its
upper limit, SHR will control the figure at mid-40%, which is a conservative level, setting the upper limit for thetime being at around 50% with a focus on securing its funding capabilities.
Furthermore, SHR will work to diversify its sources for direct and indirect financing, such as by issuinginvestment corporation bonds, in comprehensive consideration of the market environment, SHR’s financial
standing and other factors, while continuing its endeavors for stable and sound financial operations.

15

16

Outline of the investment corporation
1.

Status of Capital

Fiscal period

As of the end
As of the end As of the end As of the end As of the endof 9th fiscal of 10th fiscal of 11th fiscal
of 7th fiscal
of 8th fiscal
periodperiodperiodperiodperiod(Apr. 30, 2018) (Oct. 31, 2018) (Apr. 30, 2019) (Oct. 31, 2019) (Apr. 30, 2020)

Total number of investment units
authorized (units)

10,000,000

20,000,000

20,000,000

20,000,000

20,000,000

Total number of investment units
issued and outstanding (units)

969,000

3,762,091

3,762,091

4,288,666

4,288,666

Unitholders’ capital (million yen)

110,189

110,189

110,189

149,210

149,210

Number of unitholders (persons)

12,95820,293

18,73618,986

19,230

2.

Japan Trustee Services Bank, Ltd. (Trust Account)

Number ofunits owned(units)Percentage of
owned units tototal units
issued andoutstanding(%)

1,055,699

24.62

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

676,488

15.77

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

204,996

4.78

Sekisui House, Ltd.

200,750

4.68

Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account)

104,975

2.45

STATE STREET BANK WEST CLIENT - TREATY 505234

53,4151.25

DFA INTERNATIONAL REAL ESTATE SECURITIES PORTFOLIO

49,211

1.15

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

40,5200.94

STICHTING PENSIOEN FONDS METAAL EN TECHNIEK

39,0020.91

JP MORGAN CHASE BANK 385771

37,6320.88

2,462,688

57.42

Total
(Note)

Percentage of owned units to total units issued and outstanding is rounded to the nearest second decimal place.

Key concurrently held position, etc.

Total amount of compensationfor each position during period(thousand yen)

Junichi Inoue

President & Representative Director,
Sekisui House Asset Management, Ltd.

―

Shigeru Nomura

President, Shigeru Nomura Certified Public
Accountant OfficeOutside Director, Eiken Chemical Co., Ltd.
Member of Corporate Revitalization
Committee, The Resolution and Collection
Corporation (RCC)

1,800

Tatsushi Omiya

Outside Director, QB Net Holdings Co., Ltd.
Lawyer, Lex Law Office

1,800

Ernst & Young
ShinNihon LLC―

Position
Executive
Director

Supervisory
Director

Matters Concerning Investment Units
Of the unitholders as of the end of the fiscal period under review, the following are the top ten unitholders in termsof investment unitholding ratio.

Name

17

3. Matters Concerning Directors, etc.
(1) Name and other information of executive director, supervisory directors and an independent auditor
The following table sets forth information on the executive director, supervisory directors and an independent
auditor of SHR as of the date of this document.

Independent
AuditorName

21,900(Note 2)

(Note 1) None of the executive director or supervisory directors owns SHR investment units in their own name or in the name of anotherperson. In addition, supervisory directors may be officers of other corporations other than those stated above, but none of suchcorporations, including those stated above, has vested interest in SHR.
(Note 2) The total amount of compensation for the independent auditor, as stated above, is an approximation and includes compensation for
preparing comfort letters for the issuance of the Fifth and Sixth Series Unsecured Investment Corporation Bonds in November 2019
and February 2020, as well as compensation for auditing matters related to English financial statements.

(2) Policy for determining whether to dismiss or refuse the reappointment of independent auditor
Dismissal of the independent auditor is subject to consideration at a meeting of the board of directors of SHR inaccordance with the provisions of the Investment Trusts Act. Refusal of reappointment of the independent auditor
is also subject to consideration at a meeting of the board of directors of SHR by taking into account the quality ofaudits, amount of audit fee and various other circumstances in a comprehensive manner.
4.

Asset Management Company, Asset Custodian and Administrative AgentsThe following table sets forth information on the asset management company, asset custodian and administrative
agents of SHR as of the date of this document.
Entrustment category

Name

Asset Management Company

Sekisui House Asset Management, Ltd.

Asset Custodian

Mitsubishi UFJ Trust and Banking Corporation

Administrative Agent (Transfer Agent)Mizuho Trust & Banking Co., Ltd.

Administrative Agent (Administrative Agent forOperation of Administrative Instruments)

Mitsubishi UFJ Trust and Banking Corporation

Administrative Agent (Administrative Agent for
Investment Corporation Bonds)

MUFG Bank, Ltd.

18

Condition of investment assets
1.

(Note 1) “Book value at the end of period” refers to the depreciated book value of each property as of the end of the fiscal period under review,rounded down to the nearest million yen. The same shall apply hereinafter.
(Note 2) “Leasable area” refers to the floor area presumably available for leasing based on the lease agreement or building drawing, etc. for

Composition of Assets of the Investment Corporation
The following table sets forth the composition of assets of SHR as of the end of the fiscal period under review.

Type of
asset

Asset
category

Geographical area,etc.

As of the end of 10th fiscal
As of the end of 11th fiscal
periodperiod(Oct. 31, 2019)(Apr. 30, 2020)
As a
As a
Total amount
Total amountpercentage ofpercentage of
held
held
total assets
total assets(million yen)(million yen)(%)(%)
(Note 1)
(Note 1)
(Note 2)

Real estatein trust

Residential
properties
Commercial
properties

each property that is valid as of the end of the fiscal period under review, rounded down to the second decimal place. In cases where
the properties SHR owns are co-ownership interest or quasi co-ownership interest of trust beneficiary interests in real estate for

189,258

34.5

188,641

34.1

Other areas

55,72010.2

57,019

10.3

Three major
metropolitan areas

275,780

50.3

279,267

50.4

―

―

―

―

Total of real estate in trust

520,75995.0

524,929

94.8

Deposits and other assets

27,2305.0

29,059

5.2

Total amount of assets

547,989

100.0

553,988

100.0(Note 1) “Total amount held” is the carrying amount (or, for real estate in trust, the depreciated book value) as of the end of each fiscal period,
rounded down to the nearest million yen.
(Note 2) Figures under the heading “As a percentage of total assets” have been rounded to the nearest first decimal place.
(Note 3) SHR does not own any overseas real estate, etc. as of the end of the fiscal period under review.

2.

Major Portfolio Assets
The following table sets forth an overview of the major portfolio assets (top ten properties by book value at the end of
period) of SHR as of the end of the fiscal period under review.
Leasablearea(m2)

Leasedarea(m2)

Garden City Shinagawa
Gotenyama

70,63538,577.99

38,545.79

99.9

12.2

Gotenyama SH Building

50,02419,999.97

19,999.97

100.0

7.5

Hommachi Minami Garden City

43,032

29,657.53

29,657.53

100.0

8.6

Hommachi Garden City
(Office building portion)(Note 6)

36,987

17,006.94

17,006.94

100.0

6.2

Akasaka Garden City (Note 7)

28,815

12,472.80

12,472.80

100.0

4.3

The Ritz-Carlton, Kyoto(Note 8)

22,265

11,496.08

11,496.08

100.0

2.4

Hotel

Hommachi Garden City
(Hotel portion)(Note 6)

16,991

18,092.98

18,092.98

100.0

2.8

Hotel

Esty Maison Ojima

8,450

9,905.97

9,546.83

96.4

1.7 Residence

Esty Maison Kinshicho II

8,075

9,469.65

9,147.33

96.6

1.5 Residence

Prime Maison Shirokanedai
Tower

8,006

6,772.89

6,548.26

96.7

1.6 Residence

293,284

173,452.80

172,514.51

99.5

48.9

(Note 1)

Total

19

As a percentage
of total
property-related
operatingrevenue(%) (Note 5)

Book value
at the endof period(million yen)

Name ofreal estate, etc.

(Note 2)

(Note 3)(Note 3)

Occupancy
rate(%)(Note 4)the leasable area of exclusively-owned portions for properties under compartmentalized ownership interest) by the ratio of theownership interest owned by SHR or trustees. The same shall apply hereinafter.

“Leased area” refers to the sum total of the leased area indicated in the respective lease agreements, which are valid as of the end of
the fiscal period under review, with the end tenants for each of the properties or the leased area based on building drawings. However,the leasable area of each property is indicated in case fixed-rent type master lease agreements have been concluded with the master
lease companies, regardless of whether lease agreements have been concluded with the end tenants. For Akasaka Garden City and(Note 2)

Greater Tokyo

Other areas

respective properties, the figure indicates the value obtained by multiplying the leasable area of real estate or real estate in trust (orThe Ritz-Carlton, Kyoto, the figure indicates the area corresponding to the quasi co-ownership interest owned by SHR. The same
shall apply hereinafter.

(Note 4) “Occupancy rate” refers to the ratio of leased area to leasable area of each property as of the end of the fiscal period under review,rounded to the nearest first decimal place. The figure indicated in the “Total” column indicates the ratio of the sum total of leased
area of each property to the sum total of leasable area of each property, rounded to the nearest first decimal place.

(Note 5) Figures under the heading “As a percentage of total property-related operating revenue” indicate the ratio of property-related
operating revenue of each property for the fiscal period under review to total property-related operating revenue of each property of(Note 6)

SHR’s entire portfolio for the fiscal period under review, rounded to the nearest first decimal place.
“Hommachi Garden City” comprises the portions used as office building and retail property (“Hommachi Garden City (Office building
portion)”) and the portions used as a hotel (“Hommachi Garden City (Hotel portion)”.) In this document, the overview and otherinformation regarding the property may be described separately for the Office building portion and the Hotel portion. The same shallapply hereinafter.

(Note 7) For “Akasaka Garden City”, SHR owns 65.45% quasi co-ownership interest of trust beneficiary interest in real estate regarding thecompartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor under ground through 4th floor above
ground and 11th floor through 19th floor above ground of the building, as well as the accompanying right of site (ratio of right of site:662,768/1,000,000 (or approximately 66.3%)), and the figures indicate the value corresponding to the quasi co-ownership interest.
The same shall apply hereinafter.

(Note 8) SHR additionally acquired 9% quasi co-ownership interest of trust beneficiary interest in real estate for “The Ritz-Carlton, Kyoto” on
April 20, 2020 and SHR owns 49% quasi co-ownership interest of trust beneficiary interest in real estate for the property as of theend of the fiscal period under review.The figures indicate the value corresponding to the quasi co-ownership interest SHR owns. The
same shall apply hereinafter.

Usage
type
Officebuilding
Officebuilding
Officebuilding
Officebuilding
Officebuilding

―

20

3.

Details of Assets (Real Estate, etc.) in the Portfolio
The following table sets forth an overview of the properties owned by SHR as of the end of the fiscal period underreview.
Usage
type

Property
number(Note 1)

(Note 2)Type of ownership(Note 1)

Book value
at the end of
period(million yen)

Estimatedvalue at theend of period(million yen)

Name ofreal estate, etc.

Location

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

2,073

2,280

(Note 2)Type of ownership(Note 3)

Estimatedvalue at theend of period(million yen)

R-029

Esty Maison
Yotsuyasakamachi(Note 7)

R-030

Esty Maison Hakatahigashi

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,300

2,410

(Note 3)

Esty Maison Ginza

Chuo-ku, Tokyo

Real estate trust
beneficiary interests

6,494

6,940

R-031

Esty Maison Kamigofuku

Real estate trust
beneficiary interests

791

813

R-002

Esty Maison Azabunagasaka

Minato-ku, Tokyo

Real estate trust
beneficiary interests

Fukuoka-shi,
Fukuoka

1,768

1,860

R-032

Esty Maison Sangenjaya

Real estate trust
beneficiary interests

807

871

Shibuya-ku, Tokyo

Real estate trust
beneficiary interests

Setagaya-ku,
Tokyo

R-033

Prime Maison
Musashinonomori

Kodaira-shi,
Tokyo

Real estate trust
beneficiary interests

1,806

1,960

922

903

R-034

Prime Maison Higashisakura

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,460

1,590

Esty Maison Ebisu II

2,023

2,190

R-004

Esty Maison Ebisu

Shibuya-ku, Tokyo

Real estate trust
beneficiary interests

R-005

Esty Maison Kanda

Chiyoda-ku, Tokyo

Real estate trust
beneficiary interests

1,574

1,740

R-035

Prime Maison Kayabakoen

Nagoya-shi, Aichi

843

881

R-006

Esty Maison Kitashinjuku

Shinjuku-ku, Tokyo

Real estate trust
beneficiary interests

Real estate trust
beneficiary interests

1,556

1,710

R-036

Esty Maison Sangenjaya II

842

R-007

Taito-ku, Tokyo

Real estate trust
beneficiary interests

Real estate trust
beneficiary interests

770

Esty Maison
Asakusakomagata

Setagaya-ku,
Tokyo

2,128

2,370

R-037

Esty Maison Itabashi C6

Itabashi-ku,
TokyoReal estate trust
beneficiary interests

2,502

2,690

R-008

Esty Maison Kawasaki

Kawasaki-shi,
Kanagawa

Real estate trust
beneficiary interests

2,467

2,660

R-038

MAST Hakata(Note 8)

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,234

2,500

R-010

Esty Maison Kameido

Koto-ku, Tokyo

Real estate trust
beneficiary interests

1,531

1,760

R-039

Esty Maison Kinshicho

Sumida-ku,
TokyoReal estate trust
beneficiary interests

1,228

1,300

R-011

Esty Maison Meguro

Meguro-ku, Tokyo

Real estate trust
beneficiary interests

1,084

1,190

R-040

Esty Maison Musashikoganei

Koganei-shi,
Tokyo

Real estate trust
beneficiary interests

1,764

1,980

R-012

Esty Maison Sugamo

Toshima-ku, Tokyo

Real estate trust
beneficiary interests

1,607

1,740

R-041

Prime Maison Gokiso

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,890

2,050

3,019

3,000

886

980

R-042

Prime Maison Yuhigaoka

Osaka-shi, Osaka

Real estate trust
beneficiary interests

R-043

Prime Maison Kitatanabe

Osaka-shi, Osaka

Real estate trust
beneficiary interests

583

635

1,100

R-044

Prime Maison Momochihama

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

1,924

2,080

3,290

R-045

Esty Maison Akihabara

Taito-ku, Tokyo

Real estate trust
beneficiary interests

1,937

2,010

Esty Maison Sasazuka

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

3,402

3,500

6,125

6,650

R-013

Esty Maison Kyobashi

Osaka-shi, Osaka

Real estate trust
beneficiary interests

R-014

Esty Maison Hakuraku

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

908

982

R-015

Esty Maison Minamihorie

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,051

R-016

Esty Maison Gotanda(Note 4)

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

3,065

Residence

R-017

Esty Maison Oisendaizaka

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,764

R-018

Esty Maison
Shinagawa Seaside

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,134

2,360

R-047

Prime Maison Ginza East

Chuo-ku, Tokyo

Real estate trust
beneficiary interests

R-019

Esty Maison Minamiazabu

Minato-ku, Tokyo

Real estate trust
beneficiary interests

1,242

1,340

R-048

Prime Maison Takami

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,036

1,110

R-020

Esty Maison Tsukamoto

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,048

1,120

R-049

Prime Maison Yadaminami

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

871

865

R-021

Esty Maison Kawasaki II

Kawasaki-shi,
Kanagawa

Real estate trust
beneficiary interests

1,953

2,070

R-050

Prime Maison Teriha

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

1,211

1,290

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,654

1,640

2,860

R-046

R-022

Esty Maison Azabujuban

Minato-ku, Tokyo

Real estate trust
beneficiary interests

2,726

2,890

R-051

Esty Maison
Higashishirakabe

R-023

Esty Maison Itabashihoncho

Itabashi-ku, Tokyo

Real estate trust
beneficiary interests

913

994

R-052

Esty Maison Sengoku

Bunkyo-ku,
TokyoReal estate trust
beneficiary interests

1,342

1,380

R-024

Esty Maison Oizumigakuen

Nerima-ku, Tokyo

Real estate trust
beneficiary interests

777

838

R-053

Esty Maison Daizawa

Setagaya-ku,
TokyoReal estate trust
beneficiary interests

2,242

2,300

R-025

Esty Maison
Higashishinagawa

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,325

2,390

R-054

Esty Maison Togoshi

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,740

1,820

Esty Maison
Itabashikuyakushomae

Itabashi-ku, Tokyo

Real estate trust
beneficiary interests

2,481

2,680

R-055

Esty Maison Nishitemma

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,644

1,690

R-026

21

Location

Property
number

R-001

R-003

Residence

Name ofreal estate, etc.

Book value
at the end of
period(million yen)

Usage
type

R-027

(Note 5)

Esty Maison Musashikoyama

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,030

1,130

R-056

Esty Maison Shirokanedai

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,386

2,580

R-028

Esty Maison Sendagi(Note 6)

Bunkyo-ku, Tokyo

Real estate trust
beneficiary interests

686

753

R-057

Esty Maison Higashishinjuku

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

1,637

1,760

R-058

Esty Maison Motoazabu

Minato-ku, Tokyo

Real estate trust
beneficiary interests

1,521

1,610

22

Usagetype

Property
number(Note 1)

R-059
R-060
R-061

(Note 2)Meguro-ku, Tokyo

Type of ownershipBook value
at the end of
period(million yen)

Real estate trust
beneficiary interests

848

Esty Maison
Musashikoyama II

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,009

Esty Maison Nakano

Nakano-ku, Tokyo

Real estate trust
beneficiary interests

1,837
998

Estimatedvalue at theend of period(million yen)

Usage
type

Property
numberName ofreal estate, etc.

(Note 1)

Location(Note 2)Type of ownership(Note 3)

870

R-089

Granmast Unomori

Yokkaichi-shi,
MieBook value
at the end of
period(million yen)

Estimatedvalue at theend of period(million yen)
(Note 3)

Real estate trust
beneficiary interests

798

825

Real estate trust
beneficiary interests

2,714

2,922

Esty Maison
Kohoku Tsunashima

Yokohama-shi,
Kanagawa

R-091

MAST LIFE Hino

Hino-shi, Tokyo

Real estate trust
beneficiary interests

1,343

1,410

1,030

R-092

Prime Maison
Yokohama Nihon-odori

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

4,740

5,010

R-090

1,060
1,860

R-062

Esty Maison Shinnakano

Nakano-ku, Tokyo

R-063

Esty Maison Nakanofujimicho

Nakano-ku, Tokyo

Real estate trust
beneficiary interests

966

1,020

R-093

Kobe Women’s Student
Housing

Kobe-shi, Hyogo

Real estate trust
beneficiary interests

5,545

6,140

R-064

Esty Maison Tetsugakudo

Nakano-ku, Tokyo

Real estate trust
beneficiary interests

1,132

1,180

R-094

Prime Maison Shibuya

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

2,404

2,610

Suginami-ku,
TokyoReal estate trust
beneficiary interests

1,140
2,433

2,520

Esty Maison Koenji

1,200

Prime Maison Hatsudai

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

2,959

3,210

R-096

Esty Maison Uemachidai

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

1,081

1,060

R-095

R-066

Esty Maison Oshiage

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

R-067

Esty Maison Akabane

Kita-ku, Tokyo

Real estate trust
beneficiary interests

3,198

3,360

R-097

Esty Maison Kobe-sannomiya

Kobe-shi, Hyogo

Real estate trust
beneficiary interests

944

977

R-068

Esty Maison Oji

Kita-ku, Tokyo

Real estate trust
beneficiary interests

1,608

1,740

R-098

Prime Maison
Shirokane-takanawa

Minato-ku,
TokyoReal estate trust
beneficiary interests

4,840

5,260

R-069

Prime Maison Waseda

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

1,541

1,660

R-099

Prime Maison
Ichigayayamabushicho

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

4,160

4,240

Real estate trust
beneficiary interests

Real estate trust
beneficiary interests

642

673

R-070

Prime Maison Hatchobori

Chuo-ku, Tokyo

R-071

Prime Maison Jimbocho

Chiyoda-ku,
Tokyo

R-072

Prime Maison
Gotenyama East

Shinagawa-ku,
Tokyo

MAST LIFE Akihabara

Chiyoda-ku,
Tokyo

R-073

1,420

1,520

R-100

Esty Maison Morishita

Sumida-ku,
Tokyo

1,913

1,970

R-101

Prime Maison
Shirokanedai Tower

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

8,006

9,650

2,881

2,980

R-102

Prime Maison Otsuka

Real estate trust
beneficiary interests

3,731

4,330

Real estate trust
beneficiary interests

Toshima-ku,
Tokyo

547

569

R-103

Prime Maison Asakusabashi

Taito-ku, Tokyo

Real estate trust
beneficiary interests

1,694

1,960

2,401

2,440

R-104

Prime Maison Daikanyama

Meguro-ku,
TokyoReal estate trust
beneficiary interests

2,540

3,040

Prime Maison
Gotenyama West

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

3,433

4,130

Koto-ku, Tokyo

Real estate trust
beneficiary interests

6,036

6,800

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Residence

Esty Maison Aoi

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

R-075

Esty Maison Yakuin

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,607

2,460

R-105

R-076

Esty Maison Kinshicho II

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

8,075

8,800

R-106

R-077

Esty Maison Ojima

Koto-ku, Tokyo

Real estate trust
beneficiary interests

8,450

9,270

R-107

Esty Maison Kokura

Real estate trust
beneficiary interests

1,086

1,020

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

Kitakyushu-shi,
Fukuoka

2,051

2,120

R-108

MAST Ijiri

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

399

419

4,623

4,790

R-109

Prime Maison
Mitatsunamachi

Minato-ku,
TokyoReal estate trust
beneficiary interests

2,062

2,180

R-074

R-078

Prime Maison Fujimidai

Esty Maison Toyosu Residence(Note 10)

R-079

Esty Maison Tsurumai

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

R-080

Prime Maison Morishita

Koto-ku, Tokyo

Real estate trust
beneficiary interests

1,879

2,020

R-110

Prime Maison Hongo

Real estate trust
beneficiary interests

2,630

2,690

R-081

Prime Maison Shinagawa

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

Bunkyo-ku,
Tokyo

1,921

2,040

R-111

Prime Maison Kuramae

Real estate trust
beneficiary interests

2,219

2,290

Real estate trust
beneficiary interests

Taito-ku,
Tokyo

3,100

3,010

R-112

Esty Maison Yokohamaaobadai(Note 11)

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

3,051

3,160

Real estate trust
beneficiary interests

679

661

Real estate trust
beneficiary interests

889

869

245,661

262,827

Prime Maison Odorikoen

Sapporo-shi,
Hokkaido

R-083

Prime Maison Minami 2-jo

Sapporo-shi,
Hokkaido

R-084

Prime Maison
Kamokamogawa

Sapporo-shi,
Hokkaido

Prime Maison Central Park

Fukuoka-shi,
Fukuoka

R-082

R-085
R-086

23

Esty Maison Toritsudaigaku

Location

Real estate trust
beneficiary interests

R-065

Residence

Name ofreal estate, etc.

(Note 9)MAST LIFE Yahiro

Real estate trust
beneficiary interests

1,865

1,710

R-113

Esty Maison Shizuoka Takajo

Real estate trust
beneficiary interests

Shizuoka-shi,
Shizuoka

1,226

1,110

R-114

GRAND MAST Hirose-dori

Real estate trust
beneficiary interests

Sendai-shi,
Miyagi

2,223

2,295

Subtotal

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

1,860

1,970

Real estate trust
beneficiary interests

4,305

4,760

Real estate trust
beneficiary interests

1,038

1,030

R-087

Prime Maison Ebisu

Shibuya-ku,
Tokyo

R-088

Granmast Kanazawa
Nishiizumi

Kanazawa-shi,Ishikawa--

24

Usagetype

Officebuilding

Property
number(Note 1)Name ofreal estate, etc.

(Note 2)Type of ownershipBook value
at the end of
period(million yen)

Estimatedvalue at theend of period(million yen)

The following table sets forth the change in status of leasing of real estate, etc. owned by SHR.

(Note 3)O-001

Garden City Shinagawa
Gotenyama

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

70,635

89,100O-002

Gotenyama SH Building

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

50,02461,700O-003

Hommachi Minami Garden
City

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

43,03256,400O-004

Hommachi Garden City
(Office building portion)

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

36,98744,800O-005

HK Yodoyabashi Garden
Avenue(Note 12)

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

4,282

O-006

Hirokoji Garden Avenue

Nagoya-shi,
Aichi

O-007

Akasaka Garden City

Minato-ku,
TokyoReal estate trust
beneficiary interests
Real estate trust
beneficiary interests-

240,010295,550

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

16,991

18,000

Kyoto-shi, Kyoto

Real estate trust
beneficiary interests

22,26524,206

R-007

Subtotal--

39,25742,206

R-008

Total

-

-

524,929

600,583

R-009

Subtotal
H-001
Hotel

Location

H-002

Hommachi Garden City
(Hotel portion)
The Ritz-Carlton, Kyoto

Usage
type

Property
numberName ofreal estate, etc.

6,360

R-001

Esty Maison Ginza

6,232

7,190

R-002

28,81530,000(Note 3)

R-003
R-004
R-005
R-006

(Note 1) “Property number” is the number assigned by property after classifying the properties owned by SHR by usage type, and theletters R, O and H refer to residence, office building and hotel, respectively. The same shall apply hereinafter.
(Note 2) “Location” is indicated based on the statement in the registry. If there are multiple statements of locations in the registry, either
one of them is indicated.

(Note 3)(Note 4)(Note 5)(Note 6)

R-010
R-011
R-012

“Estimated value at the end of period” refers to the value stated in each real estate appraisal report (with the end of April as theappraisal date) for each fiscal period ended April, and the value stated in each real estate appraisal report (with the end of Octoberas the appraisal date) or the survey value stated in each real estate survey value report (with the end of October as the surveydate) as a result of value surveys not pursuant to real estate appraisal standards, for each fiscal period ended October, rounded
down to the nearest million yen.
For Esty Maison Gotanda, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest to partof the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site: 387,036/426,933 (orapproximately 90.7%)).
For Esty Maison Musashikoyama, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest
to part of the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site:
117,678/127,609 (or approximately 92.2%)).
For Esty Maison Sendagi, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest to partof the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site: 89,730/103,842 (orapproximately 86.4%)).
(Note 7) For Esty Maison Yotsuyasakamachi, SHR owns real estate trust beneficiary interests for the compartmentalized ownershipinterest to part of the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site:245,317/329,739 (or approximately 74.4%)).
(Note 8) MAST Hakata is a property on a leased land owned by the Urban Renaissance Agency and for which a general fixed-termleasehold right is established with a lease term of 50 years from December 1, 2002.
(Note 9) Part of the land of Prime Maison Central Park (lot number: 23-32) is a leased land, while the building (store) on the leased landis owned by the lessee.
(Note 10) Esty Maison Toyosu Residence is a property on a leased land owned by the Urban Renaissance Agency and for which a general
fixed-term leasehold right is established with a lease term of 65 years from March 17, 2006.
(Note 11) Esty Maison Yokohama-aobadai is comprised by two buildings, Esty Maison Yokohama-aobadai North and Esty Maison
Yokohama-aobadai South. As the two buildings are located on the same site, SHR manages these buildings as a single property
reffering to collectively as Esty Maison Yokohama-aobadai and the total amount of each building is indicated.
(Note 12) For HK Yodoyabashi Garden Avenue, SHR owns real estate trust beneficiary interests for the compartmentalized ownershipinterest to all of the exclusively-owned portions of the 1st through 6th floors above ground of the building and for theaccompanying right of site (ratio of right of site: 405,901/1,000,000 (or approximately 40.6%)).

R-013
R-014
R-015
Residence

R-016
R-017
R-018
R-019
R-020
R-021
R-022
R-023
R-024
R-025
R-026
R-027
R-028
R-029

25

11th fiscal period
10th fiscal period
From: Nov. 1, 2019
From: May 1, 2019
To: Apr. 30, 2020
To: Oct. 31, 2019
PropertyPropertyAs a
As a
relatedrelated
Total
percentage
percentage
Occupancy
Total
Occupancy
operatingoperatingnumber ofof total number ofof totalrate
rate
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalof fiscal
period]period]operating of fiscal
operatingperiod]period]period]revenuerevenue(%)(%)
period](million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)

Esty Maison
Azabunagasaka
Esty Maison
Ebisu II
Esty Maison Ebisu
Esty Maison
Kanda
Esty Maison
Kitashinjuku
Esty Maison
Asakusakomagata
Esty Maison
Kawasaki
Esty Maison
Yokohama (Note 5)
Esty Maison
KameidoEsty Maison
MeguroEsty Maison
SugamoEsty Maison
Kyobashi
Esty Maison
Hakuraku
Esty Maison
Minamihorie
Esty Maison
GotandaEsty Maison
Oisendaizaka
Esty Maison
ShinagawaSeasideEsty Maison
Minamiazabu
Esty Maison
Tsukamoto
Esty Maison
Kawasaki II
Esty Maison
Azabujuban
Esty Maison
Itabashihoncho
Esty Maison
Oizumigakuen
Esty Maison
Higashishinagawa
Esty Maison
Itabashikuyakush
omae
Esty Maison
Musashikoyama
Esty Maison
Sendagi
Esty Maison
Yotsuyasakamachi(Note 3)

1

96.8

176

1.3

1

95.4

178

1.2

1

95.5

51

0.4

1

93.4

50

0.3

1

95.9

58

0.4

1

98.1

57

0.4

1

96.1

22

0.2

1

86.4

22

0.2

1

97.4

46

0.3

1

91.1

46

0.3

1

95.2

47

0.3

1

97.6

47

0.3

1

97.7

65

0.5

1

93.5

65

0.5

1

98.7

77

0.6

1

100.0

79

0.5

―

－

13

0.1

－

－

－

－

1

97.9

54

0.4

1

93.9

55

0.4

1

100.0

32

0.2

1

97.5

32

0.2

1

100.0

49

0.4

1

94.7

49

0.3

1

98.2

89

0.6

1

97.3

88

0.6

1

96.5

30

0.2

1

93.0

31

0.2

1

96.8

33

0.2

1

98.2

34

0.2

1

92.0

92

0.7

1

92.4

90

0.6

1

96.8

77

0.6

1

96.0

77

0.5

1

98.3

64

0.5

1

91.9

65

0.5

1

94.2

34

0.2

1

100.0

36

0.2

1

99.0

39

0.3

1

97.9

39

0.3

1

99.1

61

0.4

1

99.2

63

0.4

1

100.0

67

0.5

1

97.5

68

0.5

1

98.4

29

0.2

1

100.0

30

0.2

1

98.3

26

0.2

1

92.9

26

0.2

1

98.5

72

0.5

1

96.5

71

0.5

1

97.6

77

0.6

1

95.2

79

0.5

1

100.0

31

0.2

1

97.6

32

0.2

1

95.8

22

0.2

1

100.0

24

0.2

1

98.3

59

0.4

1

96.4

60

0.4

26

Usagetype

Property
numberName ofreal estate, etc.

11th fiscal period
10th fiscal period
From: Nov. 1, 2019
From: May 1, 2019
To: Apr. 30, 2020
To: Oct. 31, 2019
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
Total
Occupancy
percentage
percentage
operatingoperatingnumber ofrate
rate
of total number ofof total
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalof fiscal
period]period]operating of fiscal
operatingperiod]period]period](%)(%)
revenuerevenueperiod](million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)(Note 3)

R-030
R-031
R-032
R-033
R-034
R-035
R-036
R-037
R-038
R-039
R-040
R-041
R-042
R-043
R-044
Residence

R-045
R-046
R-047
R-048
R-049
R-050
R-051
R-052
R-053
R-054
R-055
R-056
R-057

27

Esty Maison
Hakatahigashi
Esty Maison
Kamigofuku
Esty Maison
Sangenjaya
Prime Maison
Musashinonomori
Prime Maison
Higashisakura
Prime Maison
Kayabakoen
Esty Maison
Sangenjaya II
Esty Maison
Itabashi C6
MAST Hakata
Esty Maison
Kinshicho
Esty Maison
Musashikoganei
Prime Maison
GokisoPrime Maison
Yuhigaoka
Prime Maison
Kitatanabe
Prime Maison
Momochihama
Esty Maison
Akihabara
Esty Maison
SasazukaPrime Maison
Ginza East
Prime Maison
TakamiPrime Maison
Yadaminami
Prime Maison
TerihaEsty Maison
Higashishirakabe
Esty Maison
Sengoku
Esty Maison
Daizawa
Esty Maison
Togoshi
Esty Maison
Nishitemma
Esty Maison
Shirokanedai
Esty Maison
Higashishinjuku

Usage
type

Property
numberName ofreal estate, etc.

(Note 3)(Note 3)

1

99.3

85

0.6

1

96.3

86

0.6

R-060

1

97.0

29

0.2

1

98.5

28

0.2

R-061

1

94.4

24

0.2

1

94.5

25

0.2

R-062

1

93.2

62

0.5

1

97.6

63

0.4

R-063

1

98.7

53

0.4

1

94.4

54

0.4

R-064

1

88.6

29

0.2

1

100.0

28

0.2

R-065

1

97.1

24

0.2

1

92.2

23

0.2

R-066

1

98.2

80

0.6

1

93.4

82

0.6

R-067

1

100.0

93

0.7

1

100.0

93

0.6

R-068

1

98.6

36

0.3

1

100.0

37

0.3

R-069

1

96.1

54

0.4

1

97.1

55

0.4

R-070

1

98.5

65

0.5

1

91.2

65

0.4

R-071

1

91.8

28

0.2

1

96.4

29

0.2

R-072

1

100.0

23

0.2

1

100.0

23

0.2

1

100.0

70

0.5

1

100.0

73

0.5

1

100.0

58

0.4

1

96.2

58

0.4

1

98.0

91

0.7

1

96.3

89

0.6

1

97.9

172

1.2

1

99.2

180

1.2

1

85.3

31

0.2

1

96.7

32

0.2

1

100.0

29

0.2

1

84.6

28

0.2

1

100.0

51

0.4

1

100.0

51

0.4

1

100.0

46

0.3

1

100.0

46

0.3

1

100.0

39

0.3

1

98.7

39

0.3

1

98.8

61

0.4

1

96.5

61

0.4

1

99.0

50

0.4

1

100.0

50

0.3

1

95.6

51

0.4

1

95.5

51

0.4

1

100.0

69

0.5

1

96.1

67

0.5

1

100.0

47

0.3

1

91.2

47

0.3

R-058

Esty Maison
Motoazabu

1

100.0

40

0.3

1

100.0

43

0.3

R-059

Esty Maison
Toritsudaigaku

1

100.0

24

0.2

1

94.9

23

0.2

11th fiscal period
10th fiscal period
From: Nov. 1, 2019
From: May 1, 2019
To: Apr. 30, 2020
To: Oct. 31, 2019
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
percentage
Total
Occupancy
percentage
operatingoperatingrate
number ofrateof total number ofof total
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalperiod]of fiscal
operating of fiscal
period]operatingperiod]period](%)
revenueperiod]revenueperiod](%)(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)

R-073
R-074
Residence R-075
R-076
R-077
R-078
R-079
R-080
R-081
R-082
R-083
R-084
R-085
R-086
R-087
R-088
R-089

Esty Maison
Musashikoyama II
Esty Maison
NakanoEsty Maison
Shinnakano
Esty Maison
Nakanofujimicho
Esty Maison
Tetsugakudo
Esty Maison
KoenjiEsty Maison
Oshiage
Esty Maison
AkabaneEsty Maison Oji
Prime Maison
WasedaPrime Maison
Hatchobori
Prime Maison
JimbochoPrime Maison
Gotenyama East
MAST LIFE
Akihabara
Esty Maison Aoi
Esty Maison
YakuinEsty Maison
Kinshicho II
Esty Maison
Ojima
Prime Maison
Fujimidai
Esty Maison
TsurumaiPrime Maison
Morishita
Prime Maison
ShinagawaPrime Maison
Odorikoen
Prime Maison
Minami 2-joPrime Maison
Kamokamogawa
Prime Maison
Central Park
MAST LIFE
YahiroPrime Maison
Ebisu
Granmast
Kanazawa
Nishiizumi
Granmast
Unomori(Note 3)

1

97.3

31

0.2

1

94.7

29

0.2

1

98.1

52

0.4

1

98.7

53

0.4

1

100.0

28

0.2

1

100.0

30

0.2

1

100.0

28

0.2

1

100.0

29

0.2

1

92.1

34

0.2

1

95.2

34

0.2

1

100.0

34

0.2

1

94.6

33

0.2

1

95.0

70

0.5

1

96.5

71

0.5

1

100.0

95

0.7

1

95.8

97

0.7

1

95.5

49

0.4

1

97.8

49

0.3

1

93.0

45

0.3

1

95.4

43

0.3

1

100.0

39

0.3

1

91.9

38

0.3

1

98.6

53

0.4

1

100.0

52

0.4

1

100.0

83

0.6

1

100.0

86

0.6

1

100.0

15

0.1

1

100.0

15

0.1

1

91.2

67

0.5

1

89.2

69

0.5

1

97.5

74

0.5

1

97.3

74

0.5

1

98.2

224

1.6

1

96.6

225

1.5

1

98.3

246

1.8

1

96.4

246

1.7

1

92.4

68

0.5

1

92.6

71

0.5

1

100.0

155

1.1

1

100.0

155

1.1

1

97.7

57

0.4

1

96.5

60

0.4

1

98.2

57

0.4

1

100.0

57

0.4

1

89.0

112

0.8

1

89.9

110

0.8

1

97.5

72

0.5

1

99.1

73

0.5

1

95.2

44

0.3

1

99.0

47

0.3

1

98.8

83

0.6

1

97.2

88

0.6

1

100.0

56

0.4

1

100.0

55

0.4

1

98.3

110

0.8

1

97.2

111

0.8

1

100.0

41

0.3

1

100.0

40

0.3

1

100.0

26

0.2

1

100.0

26

0.2

28

Usagetype

11th fiscal period
10th fiscal period
From: Nov. 1, 2019
From: May 1, 2019
To: Apr. 30, 2020
To: Oct. 31, 2019
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
Total
Occupancy
percentage
percentage
operatingoperatingnumber ofrate
rate
of total number ofof total
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalof fiscal
period]period]operating of fiscal
operatingperiod]period]period](%)(%)
revenuerevenueperiod](million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)

Name ofreal estate, etc.

R-090

Esty Maison
KohokuTsunashima

1

100.0

78

0.6

1

100.0

78

0.5

O-001

R-091

MAST LIFE Hino

1

100.0

48

0.4

1

98.4

49

0.3

O-002

1

99.0

137

1.0

1

94.9

142

1.0

1

100.0

222

1.6

1

100.0

221

1.5

1

100.0

64

0.5

1

90.2

64

0.4

1

98.3

80

0.6

1

95.1

81

0.6

1

92.1

32

0.2

1

94.7

32

0.2

1

98.2

31

0.2

1

94.1

31

0.2

1

95.7

127

0.9

1

95.4

131

0.9

(Note 3)

R-092
R-093
R-094
R-095
R-096
R-097
R-098
R-099
R-100
R-101
Residence

Usage
type

Property
number

R-102
R-103
R-104
R-105
R-106
R-107
R-108
R-109
R-110
R-111
R-112
R-113
R-114
Subtotal

Prime Maison
Yokohama Nihonodori
Kobe Women’sStudent Housing
Prime Maison
ShibuyaPrime Maison
Hatsudai
Esty Maison
Uemachidai
Esty Maison Kobesannomiya
Prime Maison
Shirokanetakanawa
Prime Maison
Ichigayayamabush
icho
Esty Maison
Morishita
Prime Maison
Shirokanedai
Tower
Prime Maison
OtsukaPrime Maison
Asakusabashi
Prime Maison
Daikanyama
Prime Maison
Gotenyama West
Esty Maison
Toyosu Residence
Esty Maison
KokuraMAST Ijiri
Prime Maison
Mitatsunamachi
Prime Maison
Hongo
Prime Maison
Kuramae
Esty Maison
Yokohamaaobadai
Esty Maison
Shizuoka Takajo
GRAND MAST
Hirose-doriName ofreal estate, etc.

(Note 3)(Note 3)

Officebuilding

Garden City
Shinagawa
Gotenyama
Gotenyama SH
Building
HommachiMinami Garden
City
Hommachi Garden
City(Office building
portion)HK Yodoyabashi
Garden Avenue
Hirokoji Garden
AvenueAkasaka Garden
City

99.9

1,584

11.4

1

99.9

1,776

12.2

1

100.0

1,088

7.8

1

100.0

1,088

7.5

1

100.0

1,044

7.5

1

100.0

1,261

8.6

1

100.0

903

6.5

1

100.0

903

6.2

1

100.0

150

1.1

1

100.0

149

1.0

1

100.0

216

1.6

1

100.0

213

1.5

1

98.4

509

3.7

1

100.0

632

4.3

2

99.8

5,497

39.6

2

100.0

6,025

41.3

1

100.0

404

2.9

1

100.0

410

2.8

1

100.0

352

2.5

1

100.0

357

2.4

Subtotal

2

100.0

757

5.5

2

100.0

767

5.3

Total

15

98.1

13,879

100.0

16

97.6

14,590

100.0

O-004
O-005
O-006
O-007
Subtotal
H-001

1

96.7

112

0.8

1

87.5

109

0.7

1

100.0

18

0.1

1

100.0

18

0.1

1

96.2

236

1.7

1

96.7

237

1.6

1

95.7

118

0.9

1

93.5

116

0.8

1

97.5

51

0.4

1

91.4

52

0.4

1

84.7

64

0.5

1

88.7

72

0.5

1

96.8

115

0.8

1

96.3

121

0.8

1

96.2

469

3.4

1

96.9

475

3.3

1

90.3

32

0.2

1

89.9

33

0.2

1

100.0

13

0.1

1

100.0

13

0.1

1

88.9

39

0.3

1

90.1

49

0.3

1

91.7

51

0.4

1

88.6

66

0.5

1

96.8

43

0.3

1

95.7

61

0.4

1

100.0

39

0.3

1

100.0

86

0.6

－

－

－

－

1

100.0

11

0.1

(Note 3)

－

－

－

－

1

100.0

1

0.0

(Note 4)

12

97.5

7,624

54.9

13

96.6

7,797

53.4

Hotel

(Note 1)

(Note 2)

(Note 3)1O-003

(Note 5)29

Property
number

11th fiscal period
10th fiscal period
From: Nov. 1, 2019
From: May 1, 2019
To: Apr. 30, 2020
To: Oct. 31, 2019
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
Total
Occupancy
percentage
percentage
operatingoperatingnumber ofrate
rate
of total number ofof total
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalof fiscal
period]period]operating of fiscal
operatingperiod]period]period](%)(%)
revenuerevenueperiod](million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)

H-002

Hommachi Garden
City(Hotel portion)
The Ritz-Carlton,
Kyoto“Total number of tenants” refers to the sum total of the number of tenants under, and indicated in, the respective lease agreements
for each property that are valid as of the end of fiscal period under review (or, if a master lease agreement that is valid as of theend of each fiscal period has been concluded for the property, the number of lessees under the master lease agreement). In the“Subtotal” and “Total” columns, however, a tenant that leases spaces in multiple properties is counted as one. Furthermore, of theoffice buildings, the total number of end tenants for Garden City Shinagawa Gotenyama, Hommachi Minami Garden City, HK
Yodoyabashi Garden Avenue, Hirokoji Garden Avenue and Akasaka Garden City where pass-through type master lease agreements
have been concluded is 10, 13, 7,8 and 18, respectively as of the end of the 10th fiscal period (from May 1, 2019 to Oct. 31, 2019)
and 17, 16, 7, 8 and 18 respectively as of the end of the 11th fiscal period (from Nov. 1, 2019 to Apr. 30, 2020). As of November 29,
2019, the Master Lease and Property Management Entrust Agreement was fully revised and changed from the fixed-rent typemaster lease agreement to pass-through type master lease agreement as of February 1, 2020 and December 1, 2019, respectively,
with respect to some leased areas of Garden City Shinagawa Gotenyama and Hommachi Minami Garden City. Accordingly, theabove aggregate number of end tenants as of the end of the 10th fiscal period (from May 1, 2019 to Oct. 31, 2019) represents thenumber of end tenants for some leased area of these properties for which pass-through type master lease agreement had beenconcluded as of the end of each fiscal period under review.
“Occupancy rate” refers to the ratio of leased area to leasable area of each property as of the end of each fiscal period, rounded to
the nearest first decimal place. The figures indicated in the “Subtotal” columns are the ratio of the subtotal of leased area of each
property classified by usage type to the subtotal of leasable area of each property classified by usage type, and the figure indicatedin the “Total” column is the ratio of the sum total of leased area of each property to the sum total of leasable area of each property,
as the occupancy rate of the entire portfolio. The both figures have been rounded to the nearest first decimal place.
“Property-related operating revenue [during fiscal period]” indicates the property-related operating revenue of each property foreach fiscal period, rounded down to the nearest million yen.
Figures under the heading “As a percentage of total property-related operating revenue” indicate the ratio of property-related
operating revenue of each property for each fiscal period or the subtotal of property-related operating revenue of each property
classified by usage type for each fiscal period to total property-related operating revenue of each property for each fiscal period,
rounded to the nearest first decimal place.
SHR disposed Esty Maison Yokohama on September 27, 2019. Accordingly, “Property-related operating revenue [during fiscal
period]” and “As a percentage of total property-related operating revenue” for the property in the above table indicate the figures
for the duration SHR owned it in the 10th fiscal period (from May 1, 2019 to Oct. 31, 2019).

30

4.

Capital expenditures for property

Details of Renewable Energy Power Generation Facility, etc.
Not applicable.

1.
5.

Details of Right to Operate Public Facility, etc.
Not applicable.

6.

Name of real estate, etc.
(location)

Details of Investment Securities
Not applicable.

7.

Table of Status of Contract Amount, etc. and Fair Value of Specified Transactions
The following table sets forth the status of contract amount, etc. and fair value of specified transactions at SHR
as of the end of the fiscal period under review.
Category

Transaction other thanmarket transaction

Transaction other thanmarket transaction

TypeInterest rate swap transaction(Under which floating interest
rates are receivable and fixedinterest rates are payable)
Interest rate swap transaction(Under which floating interest
rates are receivable and fixedinterest rates are payable)
Total

MAST Hakata(Hakataekimae, Hakata-ku,
Fukuoka-shi, Fukuoka)
Prime Maison Fujimidai(Fujimidai, Chikusa-ku, Nagoyashi, Aichi)(Note)

Contract amount, etc.
Fair value(thousand yen)(Note 1)(thousand yen)Amount(Note 2)due after 1 year
48,780,000

33,380,000(340,937)

100,631,000

95,281,000－(Note 3)

149,411,000

128,661,000

ሺ340,937)(Note 1) The contract amount, etc. of interest rate swap transactions is based on notional principal amounts.
(Note 2) The fair value was calculated by the counterparty of the relevant transaction based on the actual market interest rate, etc.
(Note 3) The fair value is omitted because the transaction meets the criteria for special accounting under the Accounting Standards for
Financial Instruments.

8.

Status of Other Assets
Trust beneficiary interests with real estate as the main assets in trust are stated in “3. Details of Assets (Real
Estate, etc.) in the Portfolio” above. As of the end of the fiscal period under review, there are no specified assets
other than real estate, etc., asset-backed securities, etc. and infrastructure assets, etc. in the portfolio.

31

Status of Holding of Assets by Country and Region
As of the end of the fiscal period under review, there are no portfolio real estate, etc. in any other country or region
besides Japan.

PurposeLarge-scale repairs
Large-scale repairs

Scheduled period
From: February 2020
To: October 2020
From: June 2020
To: November 2020

Scheduled amount (million yen)(Note)
Payment for
Total
Amountthe fiscal
amount period under already paid
review
249

―

―

134

―

―

“Scheduled amount” refers to the amount arrived at by multiplying (i) the full amount required for the work by (ii) the ratio of thecompartmentalized ownership interest or quasi co-ownership interest owned by SHR, when SHR owns compartmentalized ownershipinterest in the property or quasi co-ownership interest in the real estate trust beneficiary interests for the property (in the event SHR

owns a quasi co-ownership interest related to trust beneficiary interest whose trust estate is composed of compartmentalized
ownership interest, the total cost multiplied by the ratio of compartmentalized ownership interest and then multiplied by the quasi
co-ownership interest ratio) that is subject to the relevant work.

2.

Capital Expenditures During Period
An overview of capital expenditures conducted by SHR for its properties during the fiscal period under review is
as set forth in the following table. Total capital expenditures during the fiscal period under review was 650 million
yen and, together with 292 million yen of repair expenses charged to expenses in the fiscal period under review,
work amounting to 942 million yen was implemented.

Name of real estate, etc.
Purpose(location)
Esty Maison Kyobashi
Large-scale repair(Higashinoda-cho, Miyakojima-ku, Osaka-shi, Osaka)
Esty Maison Oisendaizaka
Large-scale repair(Higashi-Oi, Shinagawa-ku, Tokyo)
Esty Maison Akihabara
Large-scale repair(Ueno, Taito-ku, Tokyo)
Esty Maison Ebisu
Large-scale repair(Hiroo, Shibuya-ku, Tokyo)
Other capital expenditures
Total

3.
9.

Schedule of Capital Expenditures
The main capital expenditure amounts accompanying renovation work, etc. currently planned for properties
owned by SHR, are as follows. However, a portion of such amounts may ultimately be classified as expenses in thecourse of the accounting process.

PeriodFrom: November 2019
To: March 2020
From: October 2019
To: March 2020
From: November 2019
To: March 2020
From: January 2020
To: April 2020

Payment amount(million yen)
137
99
62
55
295
650

Cash Reserves for Long-Term Repair Plans
SHR had no cash reserved for long-term repair plans as of the end of the fiscal period under review(Note).

(Note) “Reserve fund for repair,” which has been reserved by management associations at the properties owned by SHR in order tosecure expenses for repair works expected in the future, is not included in the cash reserves.

32

Condition of expenses and debts
1.

Condition of investment transactions

Details of Expenses Pertaining to Management, etc.

Item
Asset management fee(Note)(Unit: thousand yen)

10th fiscal period
From: May 1, 2019
To: Oct. 31, 20191.

11th fiscal period
From: Nov. 1, 2019
To: Apr. 30, 2020

Status, etc. of Sale and Purchase of Real Estate, etc., Asset-Backed Securities, etc., Infrastructure Assets, etc. andInfrastructure-Related Assets
Acquisition
Name of real estate, etc.

Acquisition date

Disposition

Acquisition
price(million yen)

Disposition date

Disposition
Gain (Loss)
Book value
price
on sale(million yen)(million yen)(million yen)

1,036,070

1,015,215

Asset custody fee

9,344

10,295

Esty Maison Shizuoka Takajo

January 31, 2020

660

―

―

―

―

Administrative service fees

43,68947,879

GRAND MAST Hirose-doriApril 20, 2020

865

―

―

―

―

Directors’ compensations

3,600

3,600

The Ritz-Carlton, Kyoto(Note 2)

April 20, 2020

4,320

―

―

―

―

239,715

266,602

―

5,845

―

―

―

―

1,332,420

1,343,592

Other expenses
Total(Note)(Note 1)

Total

(Note 1) “Acquisition price” indicates the transaction prices shown in the sales agreements for respective owned properties (excluding

In addition to the amounts shown above, the asset management fees contain 9,000 thousand yen as management fees for

consumption tax, local consumption tax and miscellaneous expenses including transaction fees), rounded down to the nearest million

property disposition, recorded as other disposition-related expenses, for the 10th fiscal period.

yen. The same shall apply hereinafter.
(Note 2) SHR additionally acquired 9% quasi co-ownership interest of trust beneficiary interest in real estate for The Ritz-Carlton, Kyoto on
April 20, 2020 and SHR owns 49% quasi co-ownership interest of trust beneficiary interest in real estate for the property as of theend of the fiscal period under review.

2.

Status, etc. in respect of Sale and Purchase of Other Assets
Not applicable.

Main assets other than the abovementioned real estate, etc., asset-backed securities, etc., infrastructure assets,etc. and infrastructure-related assets are essentially bank deposits or bank deposits within assets in trust.

33

34

4. Status of Transactions with Interested Persons, etc.(Note 1)(1) Status of Transactions

3. Investigation into Value, etc. of Specified Assets(1) Real Estate, etc. (Appraisal)
Acquisitionordisposition

Name of real estate, etc.

Transaction
dateType of asset

Acquisition
Appraisal
price orvalue
disposition(millionpriceyen)(million
yen)

Real estate
January 31,
Esty Maison Shizuoka Takajo
trust beneficiary
2020
interests

660

April 20,
2020

Real estate
trust beneficiaryinterests

865

869

April 20,
2020

Real estate
trust beneficiaryinterests

4,320

4,446

Acquisition GRAND MAST Hirose-dori

The Ritz-Carlton, Kyoto(Note 2)

661

Amount of purchase and sale, etc.

Category
Appraiser

Date ofappraisal

Total amountAmount of sale, etc.

5,845 million yen― million yen

Breakdown of status of transactions with interested persons, etc.
Daiwa Real
January 1,
Estate Appraisal
2020
Co., Ltd.

Chuo Real Estate
March 1,
Appraisal Co.,
2020
Ltd.

Rich Appraisal
Institute Co., Ltd.

4,320 million yen[73.9%]― million yen[―%]

Sekisui House Real Estate Tohoku, Ltd.

Sekisui House, Ltd.

865 million yen[14.8%]― million yen[―%]

Sekisui House Real Estate Chubu, Ltd.

660 million yen[11.3%]― million yen[―%](2) Amount of Commission Fee, etc.

April 1,
2020

Category

Total amountof commissionfee, etc. (A)(thousand yen)

(Note 1) The appraisal value stated above is derived by applying the “Real Estate Appraisal Standards; Particulars; Chapter 3: Appraisal on
Value of Real Estate Subject to Securitization.”(Note 2) SHR additionally acquired 9% quasi co-ownership interest of trust beneficiary interest in real estate for The Ritz-Carlton, Kyoto on
April 20, 2020. Therefore, “Appraisal value” of The Ritz-Carlton, Kyoto is indicated based on the ratio of quasi co-ownership interest
SHR additionally acquired.

Management fee(2) Others
Concerning transactions requiring investigations into the value, etc. of specified assets pursuant to Article 201,

(Note 2)

938,165

Paragraph 2 of the Investment Trusts Act, Akasaka Audit LLC has conducted the investigations pursuant toPractical Guidelines for Specialized Operations 4460 “Practical Guidelines for Agreed-Upon Procedures

Pertaining to Investigation into the Value, etc. of Specified Assets of Investment Trusts and Investment
Corporations” published by The Japanese Institute of Certified Public Accountants, and SHR has been notified of

the results of the investigations.
The transactions subject to investigations in the fiscal period under review were five interest rate swap
transactions. For the transactions, investigations into the name of the counterparty to the transaction, the typeof financial instrument or financial indicator involved, the transaction period, other matters concerning thecontent of the over-the-counter transaction of derivatives, etc. have been entrusted.

Amount of purchase, etc.

Breakdown of transactions with interested persons, etc.
Payee

Amount paid(B)(thousand yen)

As a percentage
of total amount
(B/A)
(%)

Sekisui House Real Estate Tokyo, Ltd.

418,499

44.6

Sekisui House Real Estate Chubu, Ltd.

58,749

6.3

Sekiwa Kanri Kansai Co., Ltd.

40,163

4.3

Sekisui House, Ltd.

34,882

3.7

Sekisui House Real Estate Kyushu, Ltd.

17,845

1.9

Sekisui House Real Estate Kansai, Ltd.

6,407

0.7

SH Hotel Systems Ltd.

243

0.0

Sekisui House Real Estate Tohoku, Ltd.

64

0.0

(Note 1) “Interested persons, etc.” refers to interested persons, etc. of the asset management company with which SHR has executed an asset
management entrustment agreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts andInvestment Corporations (Order for Enforcement No. 480 of 2000, as amended) and Article 26, Item 27 of the Rules on Investment
Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts Association, Japan.
(Note 2) “Management fee” has been rounded down to the nearest thousand yen.
(Note 3) Other than the commission fee, etc. indicated above, the amounts paid to interested persons, etc. for repair works, etc. are as follows.
The figures have been rounded down to the nearest thousand yen.

5.

35

Sekisui House Real Estate Tokyo, Ltd.

289,699 thousand yen

Sekisui House, Ltd.

137,473 thousand yen

Sekisui House Real Estate Chubu, Ltd.

65,286 thousand yen

Sekisui House Real Estate Kyushu, Ltd.

29,944 thousand yen

Sekiwa Kanri Kansai Co., Ltd.

28,988 thousand yen

Sekisui House Real Estate Kansai, Ltd.

7,742 thousand yen

Status, etc. of Transactions with the Asset Management Company Pertaining to Business Operations ofConcurrent Business Engaged in by the Asset Management Company
There are no applicable transactions as of the end of the fiscal period under review, as SHAM does not concurrently
engage in any type I financial instruments or type II financial instruments business (as defined in the Financial
Instruments and Exchange Act (Act No. 25 of 1948, as amended)), building lots and buildings transaction business,or specified joint real estate ventures.

36

Other infomation(2) Meeting of the Board of Directors of the Investment Corporation
In the fiscal period under review, regarding the matters, etc. provided in Items 2, 3, 5, 6 and 8 of Article 109,
Paragraph 2 of the Investment Trusts Act, the followings describe matters approved at a meeting of the board of

1. Notice(1) General Meeting of Unitholders

directors of SHR, as well as other matters deemed important.

During the fiscal period under review, SHR held its Fourth General Meeting of Unitholders on January 29, 2020.
The following are the matters approved at the General Meeting of Unitholders.

Matters approved

Overview
Partial amendments to the Articles of Incorporation were resolved as described below.
(1) For the purpose of increasing the linkage between the amount of management fees paid tothe asset management company and the profit of unitholders, SHR shall introduce theconcept of "TSE REIT Index Performance-Linked Rate" to the calculation formula for

Approvaldate

Matters approved

January 28,
2020

Conclusion of amendment
agreement regarding asset
management agreement

Overview
An amendment agreement regarding amendments to asset
management fees whose condition precedent is approval of partial
amendments to the Articles of Incorporation at SHR’s Fourth
General Meeting of Unitholders on January 29, 2020.

Management Fee I (Ongoing Operational and Management Fee I). The TSE REIT Index
Performance-Linked Rate will serve as an indicator to compare the degree of the increase
and decrease in the investment unit price of SHR and the TSE REIT Index, in order toincrease or decrease the management fees depending on whether the extent of thechanges in the investment unit price of SHR were favorable compared to the extent of thePartialamendments to
the Articles ofIncorporation

changes in the TSE REIT Index. Thus, SHR shall change the provision in the Articles ofIncorporation to the effect that the amount of Management Fee I (Ongoing Operationaland Management Fee I) shall be increased or decreased by increasing or decreasing theapplied rate multiplied to total assets to a certain extent. In addition, provisions thatprovide for necessary adjustments to the calculation formula for Management Fee I(Ongoing Operational and Management Fee I) shall be added in order to make the impact
on Management Fee I (Ongoing Operational and Management Fee I) neutral when SHR
conducts a split of the investment units or a Rights Offering (issuance of new investment
units as a result of the exercise of investment unit acquisition rights related to an
allotment without contribution to unitholders).

(2) The amendment to the Articles of Incorporation described in (1) above will be effective asof May 1, 2020, which is the first day of the 12th business term of SHR, and a provision tothat effect will be added as an appendix to the Articles of Incorporation.

(3) In addition, wording corrections and other adjustments to the text shall be made inaccordance with the addition of the provisions.

Appointment of 1(one) executive

Junichi Inoue was appointed as executive director.

Appointment of 1(one) substituteexecutive director

Atsuhiro Kida was appointed as substitute executive director.
His term of office will be from February 1, 2020 to the end of the above executive director’s termof office.

Appointment of 2(two) supervisory
directors

Shigeru Nomura and Tatsushi Omiya were appointed as supervisory directors.
Their term of office will be 2 years from February 1, 2020.

Appointment of 1(one) substitutesupervisory
director

Yu Yada was appointed as substitute supervisory director.
His term of office will be from February 1, 2020 to the end of the above supervisory director’s
term of office.

director

37

His term of office will be 2 years from February 1, 2020.

38

<MEMO>

Financial Section (Audited)

Contents
Financial Statements

39

Balance Sheet

41

Statement of Income and Retained Earnings

43

Statement of Changes in Net Assets

44

Statement of Cash Distributions

46

Statement of Cash Flows

47

Notes to Financial Statements

48

Supplementary Schedules

64

Independent Auditor’s Report75

40

(Thousands of yen)

10th Fiscal Period(As of October 31, 2019)

1. Financial Statements(1) Balance Sheet(Thousands of yen)

10th Fiscal Period(As of October 31, 2019)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Vehicles in trust
Accumulated depreciation
Vehicles 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
Intangible assets
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets
Total assets

41

11th Fiscal Period(As of April 30, 2020)

7,551,248
17,134,730
196,322
198,915
153,267(778)
25,233,705

8,712,829
17,828,103
193,901
219,243
2,922(1,726)
26,955,273

172,504,565(10,454,347)
162,050,217
1,564,478(152,627)
1,411,851
2,193,249(133,771)
2,059,477
153
(19)
134
214,116(24,980)
189,135
352,572,801
5,494
518,289,113

174,333,341(12,740,101)
161,593,240
1,571,922(184,087)
1,387,834
2,217,849(183,002)
2,034,846
153
(57)
96
309,530(46,432)
263,097
357,199,586－
522,478,701

2,475,748
5,442
2,481,190

2,450,322
4,517
2,454,840

790,700
498,514403,137
1,692,352
522,462,655

790,700
544,044482,274
1,817,018
526,750,560

65,615
227,653
293,268
547,989,630

105,431
177,554282,986
553,988,820

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Derivatives liabilities
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Derivatives liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
SurplusCapital surplus
Voluntary reserve
Reserve for reduction entry
Reserve for temporary difference adjustments
Total voluntary reserve
Unappropriated retained earnings
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets (Note 4)
Total liabilities and net assets

11th Fiscal Period(As of April 30, 2020)

974,618
13,000,000
2,000,000
27,892,500
1,205,134
196,924588－
431,905
50,959269,336
46,021,967

800,601
13,100,000－
28,050,000
1,169,454
185,218586
474,411430,486
55,983
140,795
44,407,537

17,500,000
183,850,000
13,836,639
424,718
163,835
215,775,192
261,797,160

24,500,000
184,292,000
14,074,235
284,954
106,366
223,257,555
267,665,093

149,210,081

149,210,081

128,598,415

128,598,415－
1,454,196
1,454,196
7,405,454
137,458,066
286,668,148

775,495
1,089,341
1,864,837
6,991,331
137,454,583
286,664,665(475,678)(475,678)
286,192,469
547,989,630(340,937)(340,937)
286,323,727
553,988,820

The accompanying notes are an integral part of these financial statements.

42

(2) Statement of Income and Retained Earnings(Thousands of yen)

10th Fiscal Period

Operating revenue
Rent revenue – real estate (Note 5)
Other lease business revenue (Note 5)
Gain on sale of real estate properties (Note 5)
Total operating revenue
Operating expenses
Expenses related to rent business (Note 5)
Asset management fees
Asset custody fees
Administrative service fees
Directors’ compensation
Provision of allowance for doubtful accounts
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
Refunded consumption taxes
Other
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses
Amortization of investment unit issuance costs
Amortization of investment corporation bond issuance costs
Other
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes – current
Total income taxes
Net income
Unappropriated retained earnings
The accompanying notes are an integral part of these financial statements.

11th Fiscal Period(From May 1, 2019

(From November 1, 2019

to October 31, 2019)

to April 30, 2020)

13,539,686
339,644804,126
14,683,458

14,196,787
393,545－
14,590,332

5,124,966
1,036,070
9,344
43,6893,600
226239,489
6,457,387
8,226,071

5,372,698
1,015,215
10,29547,8793,600
947
265,655
6,716,291
7,874,041

106
1,415
49,005684
51,211
672,439
53,44893,43642,905
5,212
3,779
871,223
7,406,059
7,406,059
605
605
7,405,454
7,405,454

119
1,238
5,468
607
7,433
659,469
61,150105,456
49,9739,880
3,607
889,538
6,991,936
6,991,936
605
605
6,991,331
6,991,331(3) Statement of Changes in Net Assets
10th Fiscal Period (From May 1, 2019 to October 31, 2019)(Thousands of yen)

Unitholders’ equity
Surplus

Balance at beginning of period

110,189,294

Reserve fortemporarydifference
adjustments

Capitalsurplus128,598,415

Total
voluntary
reserve

Unappropriatedretainedearnings

1,556,827

1,556,827

5,894,142(102,630)(102,630)

102,630

Changes of items during period
Issuance of new investment units

39,020,787

Reversal of reserve for temporary
difference adjustments
Distribution from surplus(5,996,773)

Net income

7,405,454

Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period (Note 6)

39,020,787－(102,630)(102,630)

1,511,312

149,210,081

128,598,415

1,454,196

1,454,196

7,405,454(Thousands of yen)

Valuation and translation
adjustments

Unitholders’ equity
Surplus

Balance at beginning of period

Total
surplusTotal
unitholders’equity136,049,385

246,238,679

Total
Deferred gains valuation andtranslation
or losses on
adjustments
hedges(542,929)(542,929)

Total
net assets

245,695,750

Changes of items during period
Issuance of new investment units

39,020,787

39,020,787

－

－

－

Distribution from surplus(5,996,773)(5,996,773)(5,996,773)

Net income

7,405,454

7,405,454

7,405,454

Reversal of reserve for temporary
difference adjustments

Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period (Note 6)

43

Voluntary reserve

Unitholders’capital67,251

67,251

67,251

1,408,681

40,429,468

67,251

67,25140,496,719

137,458,066

286,668,148(475,678)(475,678)

286,192,469

44

11th Fiscal Period (From November 1, 2019 to April 30, 2020)(4) Statement of Cash Distributions(Thousands of yen)

Ⅰ. Unappropriated retained earnings
Ⅱ. Reversal of voluntary reserve

Unitholders’ equity
Surplus
Unitholders’capitalBalance at beginning of period

Voluntary reserve
CapitalsurplusReserve for
reduction entry

Reserve fortemporarydifference
adjustments－

1,454,196

149,210,081 128,598,415

Unappropriatedretainedearnings

Total
voluntary
reserve
1,454,196

7,405,454

Changes of items during period
Provision of reserve for reduction
entry
Reversal of reserve for temporary
difference adjustments

775,495

775,495(364,855)(364,855)(775,495)
364,855

Distribution from surplus(6,994,814)

Net income

6,991,331

Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period (Note 6)－775,495(364,855)

410,640(414,123)

149,210,081 128,598,415

775,495

1,089,341

1,864,837

6,991,331－(Thousands of yen)

Valuation and translation
adjustments

Unitholders’ equity
Surplus

Total
Deferred gains valuation andtranslation
or losses on
adjustments
hedgesTotal
net assets

Total
surplusTotal
unitholders’equity137,458,066

286,668,148

－

－

－

－

－

－

Distribution from surplus(6,994,814)(6,994,814)(6,994,814)

Net income

6,991,331

6,991,331

6,991,331

Balance at beginning of period(475,678)(475,678)

286,192,469

Changes of items during period
Provision of reserve for reduction
entry
Reversal of reserve for temporary
difference adjustments

Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period (Note 6)

134,740

134,740

134,740(3,482)(3,482)

134,740

134,740

131,257

137,454,583

286,664,665(340,937)(340,937)

286,323,727

The accompanying notes are an integral part of these financial statements.

Item

Reversal of reserve for reduction entry
Reversal of reserve for temporary difference
adjustments (Note 7)
Ⅲ. Cash distributions[Cash distributions per unit]
Ⅳ. Voluntary reserve
Provision of reserve for reduction entry(Note 7)
Ⅴ. Retained earnings carried forward

Method for calculating cash distributions

11th Fiscal Period(From November 1, 2019 to

October 31, 2019)

April 30, 2020)

7,405,454,420yen

6,991,331,249yen－yen

29,325,584yen

364,855,362yen

119,972,057yen

6,994,814,246yen[1,631yen]

7,140,628,890yen[1,665yen]

775,495,536yen

－yen

－yen

－yen

The basic policy is to distributein excess of an amountThe basic policy is to distributein excess of an amountfor distribution of SHR
provided in Article 67-15,
Paragraph 1 of the Act onfor distribution of SHR
provided in Article 67-15,
Paragraph 1 of the Act onequivalent to 90% of theamount of earnings available

Special Measures Concerning
Taxation as set forth in Article
46, Paragraph 1, Item 2 of the
Articles of Incorporation of
SHR.
Based on such policy, SHR
decided to distribute
6,994,814,246 yen, which is
obtained by adding a reversalof the reserve for temporary
difference adjustments(364,855,362 yen) tounappropriated retained
earnings and reserving areserve for reduction entry(775,495,536 yen) provided in

Article 65-7 of the Act on
Special Measures Concerning
Taxation, as distribution of

earnings.
SHR will not distribute cash inexcess of earnings as set forthin Article 46, Paragraph 2 of
the Articles of Incorporation of
SHR.

45

10th Fiscal Period(From May 1, 2019 toequivalent to 90% of theamount of earnings available

Special Measures Concerning
Taxation as set forth in Article
46, Paragraph 1, Item 2 of the
Articles of Incorporation of
SHR.
Based on such policy, SHR
decided to distribute
7,140,628,890 yen, which is

obtained by adding a reversalof the reserve for temporary
difference adjustments(119,972,057 yen) and areversal of the reserve for
reduction entry (29,325,584
yen) to unappropriatedretained earnings, as
distribution of earnings.

SHR will not distribute cash inexcess of earnings as set forthin Article 46, Paragraph 2 of
the Articles of Incorporation of
SHR.

46

(5) Statement of Cash Flows
10th Fiscal Period

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease due to sale of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Decrease (increase) in other investments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 8)
The accompanying notes are an integral part of these financial statements.

47(From May 1, 2019
to October 31, 2019)(Thousands of yen)

11th Fiscal Period(From November 1, 2019
to April 30, 2020)

7,406,059
2,370,528
5,212
42,905(106)725,888(39,188)(3,530)(30,629)(101,955)
173,060
218,946－
122,828
2,073,098
96,442
13,059,560
106(812,688)(606)
12,246,372

6,991,936
2,414,284
9,880
49,973(119)
720,6202,420
150,619(20,327)(45,530)(21,310)(37,507)474,411(1,419)－(97,429)
10,590,501
119(820,599)(607)
9,769,414(73,243,672)
2,887,300(198,705)(22,687)(70,577,764)(6,730,228)
382,866(145,271)(78,645)(6,571,279)

31,160,000(24,660,000)
16,310,000－
6,455,456－
38,789,674(5,996,933)
62,058,197
3,726,805
20,959,174
24,685,979

5,700,000(5,600,000)
21,392,000(20,792,500)
6,950,303(2,000,000)－(6,992,986)(1,343,183)
1,854,952
24,685,979
26,540,932(6) Notes to Financial Statements
1. Organization
Sekisui House Reit, Inc. (“SHR”) is a Japanese real estate investment corporation established in September 2014
under the Act on Investment Trusts and Investment Corporations of Japan (the “Investment Trust Act”).
On December 3, 2014, SHR commenced its investment operations when it was listed on the Real Estate Investment
Trust Securities Market of the Tokyo Stock Exchange, and it acquired three properties (total acquisition cost of¥114.3 billion) on the same day.
SHR implemented a 2-for-1 split of its investment units with May 1, 2018 as the effective date.
SHR conducted an absorption-type merger with Sekisui House Residential Investment Corporation (“SHI”) as thedissolved corporation, setting May 1, 2018 as the effective date.
SHR is externally managed by a licensed asset management company, Sekisui House Asset Management, Ltd. (the“Asset Management Company”).
Sekisui House Asset Management, Ltd., previously called Sekisui House Investment Advisors, Ltd., carried out anabsorption-type merger with Sekisui House Asset Management, Ltd. (the “former SHAM”), which was the asset
management company for SHI, on May 1, 2018, with the Asset Management Company being the surviving company
and the former SHAM being the dissolved company, and changed its company name to the current one.
2. Basis of Presentation
SHR maintains its accounting records and prepares its financial statements in accordance with accounting
principles generally accepted in Japan (“Japanese GAAP”), including provisions set forth in the Financial
Instruments and Exchange Act, the Investment Trust Act, the Companies Act and the related regulations, which are
different in certain respects as to the application and disclosure requirements of International Financial ReportingStandards.
The accompanying financial statements are basically a translation of the financial statements of SHR, which wereprepared in accordance with Japanese GAAP and were presented in its Securities Report filed with the Kanto Local
Finance Bureau. In preparing the accompanying financial statements, certain reclassifications and modifications
have been made to the financial statements issued domestically in order to present them in a format which is morefamiliar to readers outside Japan. In addition, the notes to the financial statements include certain information
which might not be required under Japanese GAAP but is presented herein as additional information.
SHR’s fiscal period is a six-month period, which ends at the end of April and October of each year.
SHR does not prepare consolidated financial statements as it has no subsidiaries.
Unless otherwise specified, amounts have been rounded down to the nearest thousand yen in the accompanying
financial statements and the notes thereto. As a result, the amounts shown in the financial statements and notes
thereto do not necessarily agree with the sum of the individual account balances.
3. Summary of Significant Accounting Policies(1)Property, plant and equipment (including assets in trust)
1. Method of depreciation
Depreciation is calculated using the straight-line method.
and amortization of nonThe useful lives of principal property, plant and equipment are as follows:
current assets
Buildings
3-69 years
Structures
6-52 years
Machinery and equipment
8-61 years
Vehicles in trust
2 years
Tools, furniture and fixtures
2-15 years(2)Intangible assets
Intangible assets are amortized utilizing the straight-line method.
Leasehold rights in trust are amortized on a straight-line basis over theremaining life of each fixed-term land lease contract.
(3)Long-term prepaid expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
2. Accounting for(1) Investment corporation bond issuance costs
deferred assets
Investment corporation bond issuance costs are amortized utilizing thestraight-line method over the redemption periods.
(2) Investment unit issuance costs
Investment unit issuance costs are amortized utilizing the straight-line
method (over 3 years).

48

3. Standards for recording
allowance

4. Standards forrevenue and expense
recognition

5. Method of hedge
accounting

6.

Scope of funds in thestatement of cash flows

Allowance for doubtful accounts
To prepare for possible losses arising from default on receivables, theestimated uncollectable amount is recorded by examining collectability on acase-by-case basis for doubtful and other specific receivables.
(1)Revenue recognition
Rent revenue
SHR generally recognizes rent revenue,
including fixed rent revenues, variable rent
revenues and common area charges, on an
accrual basis over the term of each leaseagreement.
Other lease business
Other lease business revenue is recognizedrevenuein accordance with Japanese GAAP, typicallyas amounts under the relevant agreements
become due.
(2)Accounting for property taxes
In accounting for property tax, city planning tax, depreciable asset tax, etc. onreal estate, etc., of the tax amount assessed and determined, the amountcorresponding to the applicable calculation period is expensed as expenses
related to rent business.
Reimbursement of property tax, paid to the seller upon the acquisition of realestate or trust beneficiary interests of real estate as assets in trust, is notrecognized as expenses related to rent business in the corresponding fiscal
period but included in the acquisition cost of the property.
Property taxes capitalized as a part of the acquisition cost amounted to 12,322
thousand yen for the 11th fiscal period and 157,506 thousand yen for the 10th
fiscal period.
(1)Method of hedge accounting
Deferral hedge accounting is applied. However, the special accounting
treatment is applied to interest rate swaps that meet the criteria for the
special accounting treatment.
(2)Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items:
Interest on loans(3)Hedging policy
SHR conducts derivative transactions for the purpose of hedging the risks set
forth in its Articles of Incorporation based on its basic risk management policy.
(4)Method for assessing the effectiveness of hedging
Interest rate swaps meet the criteria for the special accounting treatment andan assessment of the effectiveness is thus omitted.
(5)Special accounting treatment
Under the special accounting treatment, interest rate swaps are not measured
at fair value, but the differential paid or received under the swap agreements
is recognized and included in or deducted from interest expense. Anyamounts received under interest rate swaps subject to such accounting
treatment are not recognized as income on the accompanying statements ofincome and retained earnings but rather have the effect of decreasing interest
expenses.
The funds (cash and cash equivalents) in the statement of cash flows consist of cashon hand and cash in trust; deposits that can be withdrawn at any time and deposits
in trust; and short-term investments with a maturity of three months or less fromthe date of acquisition, which are readily convertible to cash and bear only an
insignificant risk of price fluctuation.

7.

Other significant mattersserving as basis for
preparation offinancial statements(1)Accounting for trust beneficiary interests of real estate, etc. as assets in trust
Concerning trust beneficiary interests of real estate, etc. as assets in trust, allaccounts of assets and liabilities within assets in trust as well as all accountsof revenue and expenses from the assets in trust are recognized in the relevant
account items on the balance sheet and the statement of income and retained
earnings.
The following material items of the assets in trust recognized in the relevant
account items are separately listed on the balance sheet.
ͳሻ Cash and deposits in trustʹሻ Buildings in trust; Structures in trust; Machinery and equipment in trust;Tools, furniture and fixtures in trust; Land in trust; Construction inprogress in trust; Leasehold rights in trust͵ሻ Tenant leasehold and security deposits in trust(2)Accounting for consumption tax, etc.
Consumption tax and local consumption tax are excluded from the correspondingtransaction amounts.

4. Accounting Standards Issued but Not Yet Effective
New accounting standards and implementation guidance issued but not yet effective are as follows:・ “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement
No. 29 issued on March 31, 2020)
・ “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30
issued on March 31, 2020)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board(FASB) in the United States have jointly developed comprehensive accounting standards for revenue
recognition and issued “Revenue from Contracts with Customers” (IFRS 15 (IASB) and Topic 606 (FASB)) in

May 2014. Given the situation where IFRS 15 will be applied from fiscal years beginning on or after January 1,
2018 and that Topic 606 will be applied from fiscal years beginning after December 15, 2017, the ASBJ has
developed comprehensive accounting standards for revenue recognition and issued them together with theimplementation guidance.
The basic policy of the ASBJ when it developed the accounting standards for revenue recognition was tospecify the accounting standards, incorporating the basic principles of IFRS 15 as a starting point, from theperspective of comparability between financial statements, which is one of the benefits of maintaining
compatibility with IFRS 15. The basic policy also stipulates that if there is an item to which consideration
should be given, such as practices that have been conducted thus far in Japan, alternative treatments will be
added to the extent to which comparability is not impaired.

(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending October 31, 2021.
(3) Impact of applying the accounting standards
The impact of applying “Accounting Standard for Revenue Recognition” and its guidance on SHR’s financial
statements is currently under evaluation.

・ “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30 issued on July 4, 2019)
・ “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31
issued on July 4, 2019)
・ “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ GuidanceNo. 19 issued on March 31, 2019)49

50

(1) Overview

The IASB and the FASB have established detailed guidance regarding fair value measurement (IFRS 13“Fair Value Measurement” (IASB) and Topic 820“Fair Value Measurement” (FASB)). The ASBJ has
considered the guidance regarding fair value of financial instruments and disclosure in order to improve thecomparability with such international accounting standards, and issued “Accounting Standard for Fair Value
Measurement” and “Implementation Guidance on Accounting Standard for Fair Value Measurement.”(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending October 31, 2021.
(3) Impact of applying the accounting standards
The impact of applying the “Accounting Standard for Fair Value Measurement” and its guidance on SHR’s

5. Notes to Balance Sheet*1. Minimum net assets designated in Article 67-4 of the Investment Trust Act(Thousands of yen)

11th Fiscal Period

10th Fiscal Period(As of October 31, 2019)(As of April 30, 2020)

50,00050,000*2. Commitment line agreement
SHR has entered into a commitment line agreement with three financial institutions in order to secure flexible
and stable financing.

(Thousands of yen)financial statements is currently under evaluation.

10th Fiscal Period

11th Fiscal Period(As of October 31, 2019)

・“Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections”(ASBJ Statement No. 24 issued on March 31, 2020)(1) Overview
The ASBJ’s Standards Advisory Council recommended that the ASBJ consider enhancing disclosures fornotes relating to “accounting policies and methods adopted in the cases where the relevant accounting
standards were not clear.” In response to such recommendations, the ASBJ issued the revised “AccountingStandard for Accounting Policy Disclosures, Accounting Changes and Error Corrections.”(2) Scheduled date of application
The accounting standards will be applied from the end of the fiscal period ending April 30, 2021.

・“Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No. 31 issued on March
31, 2020)(1) Overview
Paragraph 125 of International Accounting Standard 1 (IAS 1), “Presentation of Financial Statements,”(issued by the IASB in 2003) requires disclosure of information about the “assumptions the entity makes about
the future, and other major sources of estimation uncertainty.” In this regard, there has been a request that the
major sources of estimation uncertainty should be disclosed in the notes to financial statements underJapanese GAAP to provide useful information to users of financial statements. In response to this request, the
ASBJ developed and issued “Accounting Standard for Disclosure of Accounting Estimates.”

Total amount of commitment line
Balance executed as loans
Unused line of credit(As of April 30, 2020)

15,000,000

15,000,000－－

15,000,000

15,000,000*3. Matters concerning accounting for reserve and reversal of reserve for temporary difference adjustments(Thousands of yen)

10th Fiscal Period(As of October 31, 2019)11th Fiscal Period(As of April 30, 2020)

Gain on negative goodwill (*)
Initial amount

1,556,827

1,556,827

Balance at beginning of period

1,556,827

1,454,196

Reserve amount during period－－

Reversal amount during period
Balance at end of period
Reason for reserve and reversal

102,630

364,855

1,454,196

1,089,341

Appropriated for
distributions

Appropriated for
distributions(*) Reserve of a part of gain on negative goodwill that arose in the previous fiscal period; SHR plans to drawdown at least 1% of thereserve for each fiscal period (corresponding to the amount of the reserve expensed equally over 50 years) and appropriate the amountfor cash distributions, starting from the fiscal period following the fiscal period in which the reserve was made.

(2) Scheduled date of application
The accounting standards will be applied from the end of the fiscal period ending April 30, 2021.

51

52

6. Notes to Statement of Income and Retained Earnings

8. Notes to Statement of Cash Distributions*1. Breakdown of property-related operating revenue and expenses

Reserve for temporary difference adjustments(Thousands of yen)

10th Fiscal Period(From May 1, 2019
to October 31, 2019)

A. Property-related operating revenue
Rent revenue – real estate
Rental income
Other
Other lease business revenue
Utilities revenue
Other
B. Property-related operating expenses
Expenses related to rent businessSubcontract expenses
Property management fees
Trust fees
Utilities expenses
Property and other taxes
Insurance expenses
Repair expenses
Depreciation
Other expenses related to rent business(From November 1, 2019
to April 30, 2020)

13,248,088
291,597

13,539,686

13,872,687
324,099

115,719
223,925

339,644

133,486
260,058

Total property-related operating revenue

13,879,331

422,160
422,487
40,591
180,503
860,133
16,257295,3362,369,076
518,418

5,124,966

10th Fiscal Period(From May 1, 2019 to October 31, 2019)11th Fiscal Period

14,196,787

393,545
14,590,332

513,204
425,146
41,484
239,615912,239
16,279292,074
2,413,359
519,294

With regard to the reserve for temporary
difference adjustments, SHR plans to drawdownat least 1% of the reserve for each fiscal period(corresponding to the amount of the reserve
expensed equally over 50 years) and appropriate
the amount for cash distributions, starting fromthe fiscal period following the fiscal period inwhich the reserve was made. SHR decided to
drawdown 364,855,362 yen for the 10th fiscal
period.

11th Fiscal Period(From November 1, 2019 to April 30, 2020)

With regard to the reserve for temporary
difference adjustments, SHR plans to drawdownat least 1% of the reserve for each fiscal period(corresponding to the amount of the reserve
expensed equally over 50 years) and appropriate
the amount for cash distributions, starting fromthe fiscal period following the fiscal period inwhich the reserve was made. SHR decided to
drawdown 119,972,057 yen for the 11th fiscal
period.

9. Notes to Statement of Cash Flows*1. Reconciliation of cash and cash equivalents at end of period to the corresponding balance sheet items(Thousands of yen)

10th Fiscal Period(From May 1, 2019
to October 31, 2019)

5,372,698

Total property-related operating expenses

5,124,966

5,372,698

C. Property-related operating income [A − B]

8,754,364

9,217,633

Cash and deposits

7,551,248

8,712,829

Cash and deposits in trust

17,134,730

17,828,103

Cash and cash equivalents

24,685,979

26,540,932

10. Lease Transactions
Operating lease transactions as lessee*2. Breakdown of gain on sale of real estate properties
10th Fiscal Period (From May 1, 2019 to October 31, 2019)

Future minimum lease payments(Thousands of yen)(Thousands of yen)

Esty Maison Yokohama
Proceeds from sale of real estate property

3,000,100

Cost of real estate property

2,073,098

10th Fiscal Period

11th Fiscal Period

411,960

412,524

20,293,591

20,129,603

20,705,551

20,542,127(As of October 31, 2019)

Other sales expenses

122,874

Due within 1 year

Gain on sale of real estate property

804,126

Due after 1 year
Total

11th Fiscal Period (From November 1, 2019 to April 30, 2020)
Not applicable.

(As of April 30, 2020)

Operating lease transactions as lessor
Future minimum lease income(Thousands of yen)

7. Notes to Statement of Changes in Net Assets*1. Total number of authorized investment units and total number of investment units issued
11th Fiscal Period
10th Fiscal Period

53

11th Fiscal Period(From November 1, 2019
to April 30, 2020)(From May 1, 2019
to October 31, 2019)(From November 1, 2019
to April 30, 2020)

Total number of authorized investment units

20,000,000units

20,000,000units

Total number of investment units issued

4,288,666units

4,288,666units

10th Fiscal Period

11th Fiscal Period

Due within 1 year

8,939,389

9,772,582

Due after 1 year

36,458,592

39,503,425

45,397,982

49,276,008(As of October 31, 2019)Total(As of April 30, 2020)54

11. Financial Instruments
1. Status of financial instruments(1) Policy for financial instruments
Making it a policy to conduct stable and sound financial operations that would contribute to steady growthof its investment assets as well as efficient management and stability of management, SHR shall procure
funds through borrowings or the issuance of investment corporation bonds for the purposes of utilizing
such funds for the acquisition of assets, payments of repair expenses or distributions, operations of SHR,
repayment of obligations or other.
For derivative transactions, the policy is that derivative transactions shall be limited to those for the
purpose of hedging the risk of fluctuations in interest rates on liabilities and foreign currency risk in thecase of overseas real estate investments, and that no speculative transactions shall be conducted.
(2) Description of financial instruments and associated risks, and risk management structure
The funds procured through borrowings shall be used mainly for the acquisition of investment assets andfor repayment of loans.

The availability and terms and conditions of borrowings and the issuance of investment corporation bonds
may be affected by SHR’s financial creditworthiness, the interest rate situation and other factors, andthere is thus no guarantee that funds can be procured at SHR’s desired timing and terms and conditions.
Furthermore, loans with floating interest rates are susceptible to subsequent market trends.
SHR manages and limits the liquidity risk and the risk of fluctuations in interest rates associated withsuch fund procurement by diversifying fund procurement sources and means and by maintaining the ratio

of interest-bearing liabilities to total assets and the ratio of floating-rate loans to total loans at appropriate
levels. Furthermore, for certain loans with floating interest rates, derivative transactions (interest rate
swap transactions) are used as a hedging instrument for hedging the risk of fluctuations in interest rates

10th Fiscal Period (As of October 31, 2019)
Book value
recorded on thebalance sheet

addition, the contract amounts of derivative transactions in “2. Matters concerning fair value of financial
instruments” do not represent the market risk involved in the derivative transactions.
2. Matters concerning fair value of financial instruments
The following is the carrying amount and fair value of financial instruments as of October 31, 2019 and of
April 30, 2020, and the difference between them.
The following table does not include those for which fair value is recognized to be extremely difficult todetermine (please refer to (Note 2)).

Fair value

Difference(1) Cash and deposits

7,551,248

7,551,248－(2) Cash and deposits in trust

17,134,730

17,134,730－

24,685,979

24,685,979－

13,000,000

13,000,000－

2,000,000

2,005,760

5,760(5) Current portion of long-term loans payable

27,892,500

27,900,332

7,832(6) Investment corporation bonds

17,500,000

17,707,993

207,993(7) Long-term loans payable

183,850,000

186,678,660

2,828,660

244,242,500

247,292,746

3,050,246(475,678)(475,678)－(475,678)(475,678)－

Total assets(3) Short-term loans payable(4) Current portion of investment corporation
bonds

Total liabilities(8) Derivative transactions (*)
Total derivative transactions (*)(*) Amounts arising from derivative transactions are shown on a net basis with any amounts inside square parentheses [ ]indicating a net liability position.

11th Fiscal Period (As of April 30, 2020)

based on rules that set forth the basic policy for handling derivative transactions and risk management.
(3) Supplementary explanation of matters concerning fair value of financial instruments
The fair value of financial instruments, aside from values based on market price, includes values based onreasonable calculations when there is no market price. As the calculations involve variable factors, there
may be cases where the corresponding values will vary when different assumptions are adopted. In(Thousands of yen)Book value
recorded on thebalance sheet(1) Cash and deposits(Thousands of yen)

Fair value

Difference

8,712,829

8,712,829－

17,828,103

17,828,103－

26,540,932

26,540,932－

13,100,000

13,100,000

－

－

－

－

(5) Current portion of long-term loans payable

28,050,000

28,068,195

18,195(6) Investment corporation bonds

24,500,000

24,504,573

4,573(7) Long-term loans payable

184,292,000

186,845,449

2,553,449

249,942,000

252,518,219

2,576,219(340,937)(340,937)－(340,937)(340,937)－(2) Cash and deposits in trust
Total assets(3) Short-term loans payable(4) Current portion of investment corporation
bonds

Total liabilities(8) Derivative transactions (*)
Total derivative transactions (*)(*) Amounts arising from derivative transactions are shown on a net basis with any amounts inside square parentheses [ ]indicating a net liability position.

(Note 1) Method of calculating the fair value of financial instruments(1) Cash and deposits and (2) Cash and deposits in trust
As these are settled within a short period of time, the fair value is approximately the same as the book value and is thusstated at that book value.
(3) Short-term loans payable
As these are settled within a short period of time and have floating interest rates, the fair value is approximately the same as
the book value and is thus stated at that book value.

55

56

11th Fiscal Period (As of April 30, 2020)(4) Current portion of investment corporation bonds (6) Investment corporation bonds
The fair value of investment corporation bonds is based on the quoted market price.

method of calculating by discounting the combined total of principal and interest by a reasonably estimated interest rateapplicable when conducting similar fund procurement for the remaining period of the bonds.

(5) Current portion of long-term loans payable (7) Long-term loans payable

As the long-term loans payable with floating interest rates reflect interest rate changes within a short period of time, the fairvalue is approximately the same as the book value and is thus stated at that book value (provided, however, that for long-termloans payable with floating interest rates that qualify for the special accounting treatment of interest rate swaps (please refer
to “13. Derivative Transactions”), the fair value is based on the method of calculation in which the sum total amount ofprincipal and interest accounted for with the interest rate swap is discounted by the rate assumed in the event of a similar

new drawdown). In addition, for those with fixed interest rates, the fair value is based on the method of calculation in which
the sum total amount of principal and interest is discounted by the rate assumed in the event of a similar new drawdown

corresponding to the remaining period.
(8) Derivative transactions
Please refer to “13. Derivative Transactions”.

1 to 2 years

2 to 3 years

3 to 4 years

Short-term loans payable

13,100,000

－

－

－

－

－

Investment corporation
bonds

－

－

3,000,000

3,000,000

12,000,000

6,500,000

Long-term loans payable

28,050,000

35,590,000

23,500,000

36,050,000

22,295,000

66,857,000

10th Fiscal Period

11th Fiscal Period(As of April 30, 2020)

13,836,639

14,074,235

Tenant leasehold and security deposits in trust(Thousands of yen)
Due after
4 to 5 years
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

Cash and deposits

7,551,248

－

－

－

－

－

Cash and deposits in trust

17,134,730

－

－

－

－

－

Total

24,685,979

－

－

－

－

－

11th Fiscal Period (As of April 30, 2020)(Thousands of yen)
Due after
4 to 5 years
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

Cash and deposits

8,712,829

－

－

－

－

－

Cash and deposits in trust

17,828,103

－

－

－

－

－

Total

26,540,932

－

－

－

－

－

2. Derivatives to which hedge accounting is applied
The following is the contract amount or the amount equivalent to the principal provided in the contract asof the closing date for each method of hedge accounting.
10th Fiscal Period (As of October 31, 2019)
Method ofhedge
accounting

Type ofderivative transactions

Interest rate swap
transaction
Principal
Floating interest rate
methodreceivable and fixedinterest rate payable
Interest rate swap
Specialtransaction
accounting
treatment for Floating interest rateinterest rate receivable and fixedswapsinterest rate payable(Thousands of yen)Mainhedgeditem

Contract amount
Of which,over
1 yearFair value

Calculation
method offair value

Long-term
loans
payable55,572,500

43,280,000(475,678)*1

Long-term
loans
payable98,081,000

84,081,000*2－*1 Fair value is quoted by counterparties based on the prevailing market interest rates.
*2 As derivative transactions qualifying for the special accounting treatment for interest rate swaps are accounted for with thehedged long-term loans payable, the fair value is included in the fair value of the underlying long-term loans payable (pleaserefer to “ 11. Financial Instruments; 2. Matters concerning fair value of financial instruments (Note 1)”).

(Note 4) Repayment schedule of investment corporation bonds and loans after the closing date

10th Fiscal Period (As of October 31, 2019)57

1. Derivatives to which hedge accounting is not applied
10th Fiscal Period (As of October 31, 2019)
Not applicable.
11th Fiscal Period (As of April 30, 2020)
Not applicable.

(Note 3) Redemption schedule of monetary claims after the closing date

10th Fiscal Period (As of October 31, 2019)

Not applicable.
11th Fiscal Period (From November 1, 2019 to April 30, 2020)

13. Derivative Transactions(Thousands of yen)
(As of October 31, 2019)12. Securities
10th Fiscal Period (From May 1, 2019 to October 31, 2019)

Not applicable.

(Note 2) Financial instruments for which fair value is recognized to be extremely difficult to determine
Tenant leasehold and security deposits in trust are not subject to valuation of fair value because a reasonable estimation of
cash flows is recognized to be extremely difficult because there is no market price and the difficulty of calculating the actual
deposit period from when lessees move in to when they move out.

Item

(Thousands of yen)
Due after
4 to 5 years
5 years

Due in1 year or lessOf the investment corporation bonds issued by SHR, the fair value of those with a market price is based on the quoted market
price. For those where it is difficult to obtain the fair value based on the quoted market price, the fair value is based on the(Thousands of yen)
Due after
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

Short-term loans payable

13,000,000

－

－

－

－

－

Investment corporation
bonds

2,000,000－

3,000,000－

10,000,000

4,500,000

Long-term loans payable

27,892,500

29,710,000

39,230,000

31,310,000

21,735,000

61,865,000

58

11th Fiscal Period (As of April 30, 2020)
Method ofhedge
accounting(Thousands of yen)Mainhedgeditem

Type ofderivative transactions

Interest rate swap
transaction
Floating interest ratereceivable and fixedinterest rate payable
Interest rate swap
Specialtransaction
accounting
treatment for Floating interest rateinterest rate receivable and fixedswapsinterest rate payable
Principal
methodContract amount
Of which,over
1 yearLong-term
loans
payableLong-term
loans
payable48,780,000

100,631,000

Fair value

2. Breakdown of major items that caused significant differences between the statutory tax rate and theeffective income tax rate after application of tax-effect accounting

Calculation
method offair value(As of October 31, 2019)

Statutory tax rate

33,380,000

95,281,000(340,937)*2(%)

10th Fiscal Period

11th Fiscal Period(As of April 30, 2020)

31.51

31.46

(29.76)(32.12)[Adjustments]*1

Deductible cash distribution－

Changes in valuation allowance

1.55

0.53

Provision of reserve for reduction entry(3.30)

0.13

Other

0.01

0.01

0.01

0.01

Effective income tax rate
after application of tax-effect accounting*1 Fair value is quoted by counterparties based on the prevailing market interest rates.

*2 As derivative transactions qualifying for the special accounting treatment for interest rate swaps are accounted for with thehedged long-term loans payable, the fair value is included in the fair value of the underlying long-term loans payable (pleaserefer to “ 11.

Financial Instruments; 2. Matters concerning fair value of financial instruments (Note 1)”).

16. Profit or Loss of Affiliates Accounted for Under the Equity Method
10th Fiscal Period (From May 1, 2019 to October 31, 2019)
Not applicable.

14. Retirement Benefits
10th Fiscal Period (From May 1, 2019 to October 31, 2019)
Not applicable.
11th Fiscal Period (From November 1, 2019 to April 30, 2020)

11th Fiscal Period (From November 1, 2019 to April 30, 2020)
Not applicable.

Not applicable.

15. Income Taxes
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause(Thousands of yen)

10th Fiscal Period(As of October 31, 2019)11th Fiscal Period(As of April 30, 2020)

2,288,155

2,230,782

Amortization of leasehold rights in trust

20,422

27,229Deferred gains or losses on hedges

149,648

107,259

Deferred tax assets (subtotal)

2,458,226

2,365,271

Valuation allowance for total deductible temporary
difference(2,458,226)(2,365,271)

－

－

－

－

Total deferred tax assets
Net deferred tax assets

Not applicable.

11th Fiscal Period (From November 1, 2019 to April 30, 2020)
Not applicable.

Deferred tax assets
Valuation difference on assets acquired due to merger

17. Transactions with Related Parties
1. Parent company and major corporate unitholders.
10th Fiscal Period (From May 1, 2019 to October 31, 2019)

2. Subsidiaries and affiliates.
10th Fiscal Period (From May 1, 2019 to October 31, 2019)
Not applicable.

11th Fiscal Period (From November 1, 2019 to April 30, 2020)
Not applicable.

3. Sister companies.
10th Fiscal Period (From May 1, 2019 to October 31, 2019)
Not applicable.

11th Fiscal Period (From November 1, 2019 to April 30, 2020)
Not applicable.

5960

4. Directors and major individual unitholders.

19. Investment and Rental Properties

10th Fiscal Period (From May 1, 2019 to October 31, 2019)
Type

Directoror close
relative

Name

JunichiInoue

Description ofPercentage ofoccupation

held by (in) SHR

business or

Executive Directorof SHR and
Representative
Director of Sekisui
House Asset

Description of

voting rights－

Management, Ltd.

transaction

Payment of asset
management feesto Sekisui House

Asset
Management, Ltd.

Transaction
amount(Thousandsof yen)1,045,071(Note 2)

Account
item

Balanceat end of period

Accounts
payable1,133,704– other(Note 1)of property, plant and equipment.
(Note 3) Consumption taxes are not included in the transaction amount but are included in the balance at end of period.

Type

Directoror close
relative

Name

JunichiInoue

Executive Directorof SHR and
Representative
Director of Sekisui
House AssetManagement, Ltd.

－

Description oftransaction
Payment of asset
management feesto Sekisui House

Asset
Management, Ltd.
(Note 1)

Transaction
amount(Thousandsof yen)1,015,215

Account
item

Accounts
payable– other

Balanceat end of period(Thousands ofyen)

1,116,736(Note 1) A transaction conducted by Junichi Inoue as a representative of a third party (Sekisui House Asset Management, Ltd.) andthe fee amount is based on terms and conditions set forth in the Articles of Incorporation of SHR.
(Note 2) Consumption taxes are not included in the transaction amount but are included in the balance at end of period.

18. Asset Retirement Obligations
10th Fiscal Period (From May 1, 2019 to October 31, 2019)
Not applicable.

11th Fiscal Period (From November 1, 2019 to April 30, 2020)
Not applicable.

(Thousands of yen)

10th Fiscal Period

11th Fiscal Period(From May 1, 2019 to
October 31, 2019)(From November 1, 2019
to April 30, 2020)

Balance at beginning of period

451,782,070

520,759,366

Amount of increase (decrease) during period

68,977,295

4,169,657

Balance at end of period

520,759,366

524,929,023

593,054,000

600,583,000

Carrying amount

Fair value at end of period

11th Fiscal Period (From November 1, 2019 to April 30, 2020)
Percentage ofvoting rights
held by (in) SHR

these investment and rental properties.

(Thousands ofyen)(Note 1) A transaction conducted by Junichi Inoue as a representative of a third party (Sekisui House Asset Management, Ltd.) andthe fee amount is based on terms and conditions set forth in the Articles of Incorporation of SHR.
(Note 2) The amount includes 9,000 thousand yen of asset management fees pertaining to real estate sales included in the book value

Description ofbusiness or
occupation

SHR owns rental office buildings, etc. in Tokyo and other areas for the purpose of earning revenue fromleasing. The following is the carrying amount, amount of increase (decrease) during the period and fair value of(Note 1) Carrying amount is the book value less accumulated depreciation.
(Note 2) Net increase during the 10th fiscal period is mainly attributable to the acquisition of 7 new properties (72,593,252 thousandyen), offset by a decrease during the period mainly attributable to the disposition of one property (2,073,098 thousand yen)that SHR had owned and depreciation (2,369,076 thousand yen). Net increase during the 11th fiscal period is mainly
attributable to the acquisition of 3 new properties (5,932,747 thousand yen), offset by depreciation (2,413,359 thousand yen).
(Note 3) Fair value at the end of the period is the appraisal value by outside real estate appraisers.

The property-related operating income in the 10th and 11th fiscal periods for investment and rental properties
is presented in “6. Notes to Statement of Income and Retained Earnings”.

20. Segment Information
1. Segment information

Segment information is omitted because SHR operates a single segment, which is the real estate leasing
business.

2. Related information
10th Fiscal Period (From May 1, 2019 to October 31, 2019)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single
products and services category are in excess of 90% of operating revenue on the statement of income andretained earnings.
(2) Information about geographic areas
ͳሻ Operating revenue

Information about net sales is omitted because net sales to external customers in Japan are in excessof 90% of operating revenue on the statement of income and retained earnings.
ʹሻ Property, plant and equipment

Information about property, plant and equipment is omitted because the property, plant andequipment located in Japan is in excess of 90% of property, plant and equipment on the balance
sheet.
(3) Information about major customers(Thousands of yen)

Name of customer
Sekisui House, Ltd.

61

Operating revenue
3,270,352

Name of related segment
Real estate leasing business62

11th Fiscal Period (From November 1, 2019 to April 30, 2020)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single
products and services category are in excess of 90% of operating revenue on the statement of income andretained earnings.
(2) Information about geographic areas
1� Operating revenue

Information about net sales is omitted because net sales to external customers in Japan are in excessof 90% of operating revenue on the statement of income and retained earnings.
�� Property, plant and equipment

Information about property, plant and equipment is omitted because the property, plant andequipment located in Japan is in excess of 90% of property, plant and equipment on the balance
sheet.
(3) Information about major customers(Thousands of yen)

Name of customer
Sekisui House, Ltd.

Operating revenue

Name of related segment

2,143,854

Real estate leasing business(7) Supplementary Schedules
11th Fiscal Period (From November 1, 2019 to April 30, 2020)
1. Schedule of securities(1) Shares

Not applicable.

(2) Securities other than shares
Not applicable.
2. Contract amount and fair value of derivative transactions(Thousands of yen)

Category
Transaction other thanmarket transaction
Transaction other thanmarket transaction

TypeInterest rate swap transaction
Floating interest rate receivableand fixed interest rate payable
Interest rate swap transaction
Floating interest rate receivableand fixed interest rate payable
Total

21. Per Unit Information
10th Fiscal Period(From May 1, 2019
to October 31, 2019)11th Fiscal Period(From November 1, 2019
to April 30, 2020)

Net assets per unit

66,732yen

66,762yen

Net income per unit

1,775yen

1,630yenContract amount (Note 1)
Of which,over 1 year

Fair value(Note 2)

48,780,000

33,380,000(340,937)

100,631,000

95,281,000(Note 3)

149,411,000

128,661,000(340,937)(Note 1) The contract amount of interest rate swap transactions is based on the notional principal amount.
(Note 2) Fair value is quoted by counterparties based on the prevailing market interest rates.
(Note 3) The fair value is omitted because the transaction meets the criteria for the special accounting treatment under the
Accounting Standards for Financial Instruments.

(Note 1) Net income per unit is calculated by dividing net income by the daily weighted average number of investment units.
In addition, diluted net income per unit is not stated because there are no dilutive investment units.
The following is the basis for calculating net income per unit.

10th Fiscal Period

Net income (Thousands of yen)Amount not attributable to common unitholders(Thousands of yen)
Net income attributable to common investment units(Thousands of yen)
Average number of investment units during period (Units)

11th Fiscal Period(From May 1, 2019
to October 31, 2019)(From November 1, 2019
to April 30, 2020)

7,405,454

6,991,331－－

7,405,454

6,991,331

4,170,241

4,288,666

22. Significant Subsequent Events
Not applicable.

63

64

3. Schedule of property, plant and equipment and intangible assets
Type of assets

Buildings
in trust
Structuresin trust

Balanceat beginningof period

Amount ofincreaseduringperiodAmount ofdecreaseduringperiodBalanceat end ofperiod(Thousands of yen)
Accumulated depreciationoraccumulated
amortization

For theperiodNet balanceat end ofperiod172,504,565

1,828,775－

174,333,341

12,740,101

2,285,753

161,593,240

1,564,478

7,443

－

1,571,922

184,087

31,4591,387,834

2,193,249

24,599－2,217,849

183,00249,2302,034,846

153

－

－

153

57

38

96

214,116

95,413－309,530

46,432

21,452

263,097352,572,801

4,626,784－

357,199,586－－

357,199,586

5,494

－

5,494

－

－

－

－

529,054,860

6,583,016

5,494

535,632,382

13,153,681

2,387,933

522,478,701

2,552,025－－

2,552,025

101,703

25,4252,450,322

Nameequipment in(Note 1)

trust
Property,plant andequipment

Vehicles intrust
Tools,
furniture andfixtures intrust
Land in trust(Note 1)

Constructionin progress intrust
Subtotal
Intangible Leasehold
assetsrights in
trust
Other

14,500－－14,500

9,983

924

4,517

Subtotal

2,566,526－－

2,566,526

111,686

26,3502,454,840

531,621,386

6,583,016

5,494

538,198,909

13,265,367

2,414,284

524,933,541

Total(Note 1)

The increase during the fiscal period under review is mainly attributable to the acquisition of Esty Maison Shizuoka Takajo, The
Ritz-Carlton, Kyoto (Additional Acquisition) and GRAND MAST Hirose-dori．

4. Schedule of other specified assets

Real estate trust beneficiary interests are included above in “3. Schedule of property, plant and equipment
and intangible assets”.

Issue date

Notes

Machineryand

5. Schedule of investment corporation bonds

SHI
Second Series
February 28,
Unsecured Investment
2013
Corporation Bond
SHI
Fourth Series
February 28,
Unsecured Investment
2014
Corporation Bond
SHI
Fifth Series
August 29,
Unsecured Investment
2014
Corporation Bond
SHRFirst Series
September 8,
Unsecured Investment
2016
Corporation Bond
SHR
Second Series
July 13,
Unsecured Investment
2017
Corporation Bond
SHR
Third Series
July 11,
Unsecured Investment
2019
Corporation Bond
(Green Bonds)
SHR
Fourth Series
July 11,
Unsecured Investment
2019
Corporation Bond
(Green Bonds)
SHR
Fifth Series
November 1,
Unsecured Investment
2019
Corporation Bond
(Green Bonds)
SHR
Sixth Series
February 28,
Unsecured Investment
2020
Corporation Bond
(Green Bonds)
Total

－

Balance at
beginning of
period(Thousands ofyen )Amount ofdecrease during
period(Thousands ofyen )Balanceat end of period(Thousands ofyen )Couponrate(%)

2,000,000

2,000,000

－

1.000

3,000,000－

3,000,000

1.069

3,000,000－

3,000,000

0.871

2,000,000－

2,000,000

0.340

3,000,000－

3,000,000

0.240

July 13,2022(Note 2) Unsecured

4,000,000－

4,000,000

0.220

July 11,2024(Note 2) Unsecured

2,500,000－

2,500,000

0.570

July 11,2029(Note 2) Unsecured－－

5,000,000

0.220

November 1,(Note 2) Unsecured
2024

－

－

2,000,000

0.500

February 28,(Note 3) Unsecured
2030

19,500,000

2,000,000

24,500,000－

Security

February 28,
2020(Note 1) Unsecured

February 28,(Note 2) Unsecured
2024

August30,2024(Note 2) Unsecured

September 8,(Note 2) Unsecured
2026

－

－

－

(Note 1) The funds are used to repay borrowings and acquire trust beneficiary interests in real estate, etc.
(Note 2) The proceeds are used as funds for repayment of loans payable.
(Note 3) The proceeds are used as funds for redemption of existing investment corporation bonds.
(Note 4) These investment corporation bonds are equipped with pari passu clause among specified investment corporation bonds.
(Note 5) The following is the maturity schedule of investment corporation bonds within five years of the balance sheet date.

(Thousands of yen)Due in1 year or less
Investment Corporation Bonds

65

Redemption Use of
dateproceeds

1 to 2 years－

2 to 3 years－

3,000,000

3 to 4 years
3,000,000

4 to 5 years
12,000,000

66

6. Schedule of loans payable
category

Lender(Thousands of yen)AmountBalanceofat beginning ofincrease

periodduringperioddecreaseduringBalanceat end ofperiodperiod

－1,943,000

3,109,000

Mizuho Bank, Ltd.

4,118,000－

1,584,000

2,534,000

3,830,000－

1,473,000

2,357,000－－

200,000

200,000－

200,000

200,000－

200,000

200,000－

MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Short-

Sumitomo Mitsui Banking

term

Corporation

－

loans

MUFG Bank, Ltd.

－ 1,670,000－ 1,370,000－－

1,670,000－ 1,260,000－

1,260,000

payable Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation－

240,000

500,000
500,000

MUFG Bank, Ltd.

800,000
500,000

LimitedMizuho Trust & Banking Co.,
Ltd.
Resona Bank, Limited

payable240,000

Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank,

term－
400,000

Resona Bank, Limited

loans

－
－

300,000

260,000

3,842,500

Ltd.

Long-

300,000

Mizuho Bank, Ltd.
Mizuho Trust & Banking Co.,

1,370,000－－

MUFG Bank, Ltd.

2,500,000

－
－
－
－
－
－
－

3,842,500
400,000
500,000

260,000－－－－

800,000

200,000－－－

500,000

800,000

Mizuho Bank, Ltd.

300,000－－－

1,000,000

MUFG Bank, Ltd.

－－－

300,000－－

Mizuho Bank, Ltd.

400,000－

405,000－

400,000－

405,000－－

MUFG Bank, Ltd.

500,000
400,000－－－－

500,000

Mizuho Bank, Ltd.

500,000－－

500,000

500,000－－

500,000

Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co.,of assets

expenses

0.25000
Mar. 31, 2021
0.25000－－

500,000

Resona Bank, Limited

500,000
500,000－－

500,000

The Senshu Ikeda Bank, Ltd.

－－The Yamaguchi Bank, Ltd.

500,000－－

500,000

500,000－－－－

500,000

400,000
500,000－－

500,000

nt of
loans
Aug. 31, 2020

payable(Note4)

Unsecured
Unguaranteed

Purchaseof assets
Feb. 28, 2022

andrelatedexpenses

0.79614

Feb. 28, 2020

Repayment of0.95225

Feb. 26, 2021
(Note4)loans
payable－－1,500,000

980,000－－

980,000

800,000－－

800,000－

300,000

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
The Bank of Fukuoka, Ltd.

300,000
300,000－

Shinkin Central Bank

500,000

The Shizuoka Bank, Ltd.

500,000

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.

Sumitomo Mitsui Banking
Long- Corporation
term Sumitomo Mitsui Trustloans Bank, Limited
payable Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

Development Bank of JapanInc.
The Norinchukin BankMUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited
Development Bank of JapanInc.
The Norinchukin BankMUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank of Japan
Inc.

500,000

Averageinterest
rate(%)(Note 1)

Repayment
due date

Repayment
method1.11000 Feb. 28, 2022

Repayment ofloans
payableFeb. 26, 2021
(Note4)Purchaseof assets
andrelatedexpenses

300,000
500,000 0.97300

2,450,000

－
－
－
－

－
－
－
－

2,450,000

1,950,000－－

1,950,000

900,000－－

900,000

2,500,000－－

2,000,000－－

2,000,000

4,300,000

4,300,000

1,800,000－－

1,800,000－－

3,000,000－

3,000,000－

1,800,000－

1,800,000

600,000－

600,000

Lumpsum
payment－
atNov. 30, 2019
0.65830
maturit－y

900,000－

900,000－

800,000－

800,000－

800,000

800,000－－－

5,100,000

2,400,000－－－

3,700,000－－

3,700,000

2,000,000－－

2,000,000

900,000－－

900,000

1,400,000－－

1,400,000

800,000－－

800,000

700,000－－－

4,600,000

700,000－－－

3,700,000－－

3,700,000

700,000－－

700,000

300,000－－

300,000

5,100,000

4,600,000

Use ofproceeds

Security400,000

1,500,000－－

Mizuho Bank, Ltd.

RepaymeBalanceat end ofperiod500,000

Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.

Feb. 28, 2020

Amount ofdecreaseduringperiodMUFG Bank, Ltd.

Mizuho Bank, Ltd.
1.02225

400,000

500,000

Ltd.

(Note3)PurchaseAmountofincreaseduringperiodMizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

related

300,000 1.17350

1,145,000

Sumitomo Mitsui Banking

Jan. 29, 2021

Lender

Security(Note2)300,000－

Corporation

Use ofproceeds

May. 29, 2020

800,000

1,145,000

Sumitomo Mitsui Banking

entmethodand

200,000－

Limited

0.23909

1.17200
500,000

Sumitomo Mitsui Trust Bank,

0.241972,500,000

1,000,000

Corporationdue date

500,000

Aozora Bank, Ltd.

Sumitomo Mitsui Banking

Repayment(%)

Repaym－－500,000－

rate(Note 1)

5,052,000

Corporation

category

interest

MUFG Bank, Ltd.
Sumitomo Mitsui Banking

67

AverageAmount ofBalanceat beginning of
period500,000
500,000

0.83600 Aug. 31, 2021

2,500,000 0.96475 Aug. 31, 2022

2,400,000

0.94060 Nov. 30, 2021

Repayment ofloans
payableUnsecured
Unguaranteed

Purchaseof assets
andrelatedexpenses

700,000
700,000
1.47450 Nov. 30, 2024

68

Amount
category

LenderBalanceofat beginning ofincrease

periodduringperiodMizuho Bank, Ltd.
Sumitomo Mitsui Banking

600,000
300,000

The Norinchukin Bank

500,000

Shinkin Central Bank

500,000

The Senshu Ikeda Bank, Ltd.

500,000

Corporation

decreaseduringBalanceat end ofperiodperiod－600,000－－

300,000

－
－
－

－
－
－

500,000－－－－

500,000－

500,000－

The Shizuoka Bank, Ltd.

500,000

The 77 Bank, Ltd.

500,000

The Hiroshima Bank, Ltd.

500,000

MUFG Bank, Ltd.

300,000－－－－

Mizuho Bank, Ltd.

500,000－

Sumitomo Mitsui Banking

AverageAmount of

Repayment(%)

due date(Note 1)500,000 0.62800
500,000

750,000

The Norinchukin Bank

800,000－－

800,000

500,000－－

1,000,000－－

1,000,000 0.85250

MUFG Bank, Ltd.

1,300,000
1,000,000－－

1,300,000

Mizuho Bank, Ltd.

－－

600,000－－

600,000

300,000－－

300,000

Mizuho Trust & Banking Co.,－

800,000

Resona Bank, Limited

500,000

term

The Norinchukin Bank

500,000

The Bank of Fukuoka, Ltd.

700,000－－－－

500,000

loans

－
－
－
－
－
－
－

－
－
－

200,000

－
－
－
－

－
－
－
－

200,000－－－－

payable Aozora Bank, Ltd.

200,000

Shinkin Central Bank

200,000

The Senshu Ikeda Bank, Ltd.

200,000

The Shizuoka Bank, Ltd.

200,000

The 77 Bank, Ltd.

200,000

The Hiroshima Bank, Ltd.

200,000

The Yamaguchi Bank, Ltd.

200,000

MUFG Bank, Ltd.

1,650,000

MUFG Bank, Ltd.

200,000

Mizuho Bank, Ltd.

950,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co.,

1,650,000－－

850,000－－

Feb. 26, 2021
(Note4)500,000
200,000

maturity

nt of
loans
payableUnguaranteed

Longterm

200,000

loans

200,000

payable200,000
200,000
1,650,000 0.61760
200,000
950,000
Nov. 30, 2020

850,000 0.62760(Note4)－450,000－

450,000

1,000,000－－

1,000,000

MUFG Bank, Ltd.

700,000

Mizuho Bank, Ltd.

1,100,000

－
－

－
－

1,100,000

1,100,000－－

1,100,000

450,000－－

450,000－－

300,000

200,000－－

300,000

Aozora Bank, Ltd.

－－The Yamaguchi Bank, Ltd.

100,000
450,000－－

100,000

MUFG Bank, Ltd.

－－

600,000－－

600,000

The Bank of Fukuoka, Ltd.

200,000
100,000－－

200,000

Shinkin Central Bank－－The Senshu Ikeda Bank, Ltd.

100,000
100,000－－

100,000

The Shizuoka Bank, Ltd.

－－The 77 Bank, Ltd.

100,000
100,000－－

100,000

The Hiroshima Bank, Ltd.

－－

Mizuho Bank, Ltd.

200,000－－

200,000

200,000－－

200,000

400,000－－

400,000

500,000－－

500,000

Resona Bank, Limited

300,000
300,000－－－－

300,000

The Norinchukin BankMUFG Bank, Ltd.

600,000

MUFG Bank, Ltd.

1,000,000

－
－

－
－

1,000,000

800,000－－

800,000

800,000－－

800,000 0.59750

400,000－－

400,000

1,560,000－－

1,560,000

830,000－－

830,000

370,000－－

370,000 0.29688

550,000－－

550,000

370,000－－

370,000

370,000－－

370,000

Limited

650,000

MUFG Bank, Ltd.

700,000
650,000－－

650,000 0.88500

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking

Corporation
Sumitomo Mitsui Trust Bank,
LimitedResona Bank, Limited

650,000－－

650,000

Ltd.

Nov. 30, 2022
0.89470

350,000－－

350,000

300,000－－

300,000

Corporation
Development Bank of JapanInc.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co.,
Ltd.
Resona Bank, Limited
Development Bank of JapanInc.
The Norinchukin Bank

69

Purchaseof assets

0.63800

300,000

The Norinchukin Bank

Sumitomo Mitsui Banking

700,000

300,000

550,000

350,000

Aug. 31, 2023

The Norinchukin Bank

Sumitomo Mitsui Trust Bank,

loans

0.68030

Resona Bank, Limited

Corporation

nt ofNov. 30, 2023

0.67400

500,000

Inc.

Security

payable－500,000－

100,000

1.01850－Development Bank of JapanUse ofproceeds

Repayme500,000－－－－

350,000－－

350,000

－

－

－
－
－

Mizuho Bank, Ltd.

－

450,000－

Inc.

350,000

450,000

550,000

Development Bank of Japan

700,000

2,100,000

500,000

700,000 0.88470－－

Mizuho Trust & Banking Co.,

650,000－－

Resona Bank, Limited

Ltd.

700,000

ent
method400,000

2,100,000

Sumitomo Mitsui Banking

1,650,000(Note 1)

Repaym500,000

100,000

Ltd.

atdue date

400,000－－

Mizuho Trust & Banking Co.,

Repayment(%)

750,000 1.00850

100,000

Limited

rate

－
－
－

Mizuho Bank, Ltd.

Sumitomo Mitsui Trust Bank,

interest－－－－

Corporation

payment

period－－Sumitomo Mitsui Banking

700,000

period－Ltd.

securedat end of

100,000

Mizuho Trust & Banking Co.,sum

duringBalanceResona Bank, Limited

CorporationUn-

decrease

300,000

Mizuho Bank, Ltd.

RepaymeAverageAmount of

300,000

Sumitomo Mitsui Banking

0.86650duringMizuho Bank, Ltd.

Inc.

Lump-

period500,000

Sumitomo Mitsui Trust Bank,

Feb. 28, 2022

Feb. 28, 2023

increase

750,000

Corporation

1,000,000－

at beginning of

MUFG Bank, Ltd.
Sumitomo Mitsui Banking

500,000

800,000

Ltd.

0.73975

of

MUFG Bank, Ltd.

Development Bank of Japan－

LimitedLenderBalanceperiod300,000－

Sumitomo Mitsui Trust Bank,

category

Ltd.

750,000

Corporation

Security

500,000

Resona Bank, Limited

Sumitomo Mitsui Banking

methodproceeds

Mizuho Trust & Banking Co.,

500,000

Inc.

ent

Use ofLimited－Development Bank of Japan

Repaym500,000－

The Bank of Fukuoka, Ltd.

Long-

rate

500,000

Corporation

Amountinterestandrelatedexpenses

200,000

Feb. 29, 2024

450,000

100,000 0.50500

Lump-

Un-

sum

securedpaymentUn-

atguaran-maturity

teed

100,000
100,000

0.49500

Aug. 30, 2024

300,000
600,000 0.57000
RepaymeAug. 29, 2025

nt of
loans
payableNov. 30, 2020
(Note4)70

Amount
category

LenderBalanceofat beginning ofincrease

periodduringperiodat end ofperiodperiodrate

Repayment(%)

due date(Note 1)

1,810,000
440,000－－－－

Mizuho Bank, Ltd.

900,000－－

1,600,000－－

1,600,000 0.31000

600,000－－

600,000 0.61000

MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co.,Ltd.

1,810,000 0.60500
440,000
900,000

200,000－－

200,000

300,000－－

300,000

600,000－－

600,000

Resona Bank, Limited

400,000

Shinkin Central Bank

300,000

MUFG Bank, Ltd.

1,500,000

－
－
－

－
－
－

Repayment
methodUse ofproceeds

Security

category

Lenderofat beginning ofincrease

periodduringperiodSep. 8, 2026

0.67000
Aug. 31, 2020
(Note4)

MUFG Bank, Ltd.

500,000

MUFG Bank, Ltd.

500,000

Mizuho Bank, Ltd.

100,000

The 77 Bank, Ltd.

500,000

periodRepayment(%)

due date(Note 1)－－－－500,000 0.56500

－
－
－
－

100,000

1,900,000 0.70000－－

4,200,000

1,900,000－－

1,900,000

1,480,000－－

1,480,000

320,000－－

320,000

500,000－－

500,000

200,000－－

200,000
376,000 0.28568

Corporation
Sumitomo Mitsui Trust Bank,
Limited

500,000

500,000

0.63500

0.78300

0.24188

800,000－－－－

800,000

700,000
1,200,000－－

1,200,000

376,000－－

The Bank of Fukuoka, Ltd.

500,000

MUFG Bank, Ltd.

300,000－－

300,000

300,000

Mizuho Bank, Ltd.

2,459,000－－

2,459,000

The Yamaguchi Bank, Ltd.

500,000－－－

500,000

Aozora Bank, Ltd.

－－－

500,000

Sumitomo Mitsui Banking

260,000－－

260,000

870,000－－

870,000

900,000－－

900,000
565,000 0.48000

Inc.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,

Mizuho Trust & Banking Co.,
Ltd.

0.77880

Corporation－－

480,000 0.27188

Resona Bank, Limited

300,000
210,000

MUFG Bank, Ltd.

990,000－－－

300,000

The Norinchukin Bank－－－MUFG Bank, Ltd.

260,000
550,000－－

260,000

Mizuho Bank, Ltd.

－－

Mizuho Trust & Banking Co.,loans Ltd.
payable Development Bank of JapanInc.
Mizuho Bank, Ltd.
The Norinchukin Bank

220,000
220,000
176,000
2,352,000－－－

LimitedMizuho Trust & Banking Co.,

1,050,000

176,000

600,000

600,000－－

2,352,000

0.61380

0.34800－－

650,000

750,000
650,000－－－

950,000

The Norinchukin Bank－－－

550,000－－

550,000

MUFG Bank, Ltd.

750,000
1,050,000－－

750,000 0.34000

Mizuho Bank, Ltd.

－－

1,050,000

600,000－－

600,000

Inc.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co.,Ltd.

1,050,000
650,000

Resona Bank, Limited

950,000

The Norinchukin Bank

750,000

MUFG Bank, Ltd.

650,000

Development Bank of Japan
Inc.

550,000

－
－
－
－
－
－

－
－
－
－
－
－

－

Mizuho Bank, Ltd.

1,332,000－－

1,332,000

390,000－－

390,000

nt of
loans
payablesecured
Unguaranteed

Longterm

1,350,000－－

1,350,000

loans

MUFG Bank, Ltd.

500,000
500,000－－

500,000 0.29900

Mizuho Bank, Ltd.

－－

payable500,000－－

500,000

700,000－－

700,000

Corporation
Mizuho Trust & Banking Co.,
Ltd.

Sumitomo Mitsui Banking
Corporation
LimitedJul. 13, 2022－－

200,000

200,000
100,000－－－－

200,000

The Norinchukin BankMUFG Bank, Ltd.

1,000,000

Mizuho Bank, Ltd.

800,000－－－－

700,000－－

700,000

400,000－－

400,000

Sumitomo Mitsui Trust Bank,
Limited

0.353410.41800

650,000

Mizuho Trust & Banking Co.,

May. 31, 2023－－

400,000

200,000

Shinkin Central Bank

200,000－－－

200,000

The Norinchukin Bank－－－

950,000－－

0.42622

Mizuho Bank, Ltd.

800,000
700,000－－

700,000

200,000－－

200,000

maturityloans
payableUnsecured
Unguaranteed

May. 31, 2023
0.30900

0.40580

Aug. 30, 2024

800,000

400,000－－

400,000

Resona Bank, Limited

200,000
500,000－－

200,000

The Norinchukin Bank

－
－

Ltd.

at

nt of

200,000 0.41388－－

Mizuho Trust & Banking Co.,

650,000

payment

Repayme1,000,000 0.55600

1,000,000

Limited

750,000sum

200,000

MUFG Bank, Ltd.

Sumitomo Mitsui Trust Bank,

Lump-

800,000

200,000

Corporation

0.57500

100,000

400,000

Sumitomo Mitsui Banking

Feb. 26, 2027

1,000,000 0.39580

Resona Bank, Limited

Ltd.

Aug. 31, 2021

500,000

200,000

Corporation

Aug. 31, 2027

450,000 0.56500

Resona Bank, Limited

Sumitomo Mitsui Banking

650,000

550,000－－

Sumitomo Mitsui Trust Bank,

750,000

1,050,000－

Sumitomo Mitsui Banking

Feb. 27, 2026

0.35900

450,000Ltd.

950,000

Development Bank of Japan

Aug. 29, 2025

RepaymeUn-

Security

Aug. 30, 2024

565,000

Mizuho Trust & Banking Co.,

650,000

MUFG Bank, Ltd.

at750,000 0.32000

1,050,000

sum
payment
maturity

Resona Bank, Limited

Ltd.

Nov. 30, 2023

220,000

1,050,000

1,050,000

Sumitomo Mitsui Trust Bank,

220,000 0.45254－

Mizuho Bank, Ltd.

Lump-

Use ofproceeds

300,000 0.34900

MUFG Bank, Ltd.

Inc.

550,000－－－－

Development Bank of Japan

990,000 0.37000－－

750,000

Corporation

－

Ltd.

Aug. 31, 2021

210,000－－

MUFG Bank, Ltd.
Sumitomo Mitsui Banking

－

Inc.

Mizuho Trust & Banking Co.,

480,000

LimitedDevelopment Bank of Japan

Feb. 27, 2026

ent
method500,000

MUFG Bank, Ltd.

700,000

Repaym500,000

4,200,000

Sumitomo Mitsui Banking

1,500,000 0.72500

periodrate

Mizuho Bank, Ltd.

Mizuho Bank, Ltd.

300,000

at end ofinterest

1,900,000

Corporation

400,000

duringBalance

MUFG Bank, Ltd.

The Hiroshima Bank, Ltd.

Feb. 28, 2025

decrease－－－－

Sumitomo Mitsui Banking

0.67000

Balance

AverageAmount ofMizuho Bank, Ltd.
Development Bank of Japan71

duringBalance

MUFG Bank, Ltd.

Corporation

term

decreaseAmountinterest

MUFG Bank, Ltd.

Sumitomo Mitsui Banking

Long-

AverageAmount ofAug. 31, 2026
0.56600

500,00072

Amount
category

LenderBalanceofat beginning ofincrease

periodduringperiodperiodperiodRepayment(%)

due date(Note 1)－－－－1,400,000 0.68500

2,400,000
1,000,000－－

1,000,000

LimitedMizuho Trust & Banking Co.,

200,000－－

Repayment
methodUse ofproceeds

Security

category

Lender

Feb. 29, 2028－－

1,200,000

Ltd.

－

600,000－

600,000

Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co.,Ltd.

1,300,000
600,000－－－－

1,300,000

Resona Bank, Limited－

900,000－

900,000

Inc.

－

800,000－

800,000 0.50000

Mizuho Bank, Ltd.

－605,000－

605,000

Corporation－

800,000－

800,000

MUFG Bank, Ltd.

－ 2,500,000
400,000－－－－

545,000－

545,000

Ltd.

－

500,000－

500,000

Resona Bank, Limited－

500,000－

MUFG Bank, Ltd.

－ 1,542,000－

Mizuho Bank, Ltd.
term

0.28100

600,000

700,000－－

700,000

Shinkin Central Bank

200,000－－

200,000

MUFG Bank, Ltd.

1,000,000－－

1,000,000 0.27100

Mizuho Bank, Ltd.

1,500,000－－

1,500,000

1,230,000－－

1,230,000

200,000－－

200,000

600,000－－

600,000

Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co.,Ltd.

maturity

nt of
loans
payableUnsecured
Unguaranteed

Corporation
Mizuho Trust & Banking Co.,

Development Bank of Japan

Sumitomo Mitsui Banking

Sumitomo Mitsui Banking
Corporation

0.42000－－

800,000

900,000－－

900,000

The Bank of Fukuoka, Ltd.

400,000－－

400,000

Shinkin Central Bank

300,000－－

300,000

The 77 Bank, Ltd.

300,000－－

300,000

The Yamaguchi Bank, Ltd.

300,000－－

MUFG Bank, Ltd.

1,000,000－－

1,000,000 0.41000

MUFG Bank, Ltd.

1,170,000－－

1,170,000 0.46000

900,000－－

900,000

300,000－－

300,000

Feb. 27, 2026

Total

ent
methodUse ofproceeds

Security

Nov. 30, 2023

May. 29, 2026

800,000
1,300,000
Lump-

0.59900

sum

May. 31, 2028 payment
atmaturity

0.29150

Repayment ofloans
payableUnsecured
Unguaranteed

Aug. 29, 2025

2,500,000 0.28000
400,000

Aug. 31, 2028

500,000
1,542,000 0.47500

224,742,500 27,092,000 26,392,500 225,442,000(Note 1) Average interest rate is the weighted average interest rate during the period. Interest rates are rounded to six decimal
places. The interest rates for loans hedged by interest rate swap transactions used to hedge the risk of interest rate
fluctuations are the interest rates reflecting the effect of the interest rate swaps.

300,000

0.44000

Feb. 28, 2029

(Note 2) Early repayment was made on November 5, 2019.
(Note 3) Early repayment was made on February 28, 2020.
(Note 4) As of the end of the fiscal period under review, these loans are recorded as “Current portion of long-term loans payable” in“Current liabilities” on the balance sheet.
(Note 5) The following is the maturity schedule of long-term loans within five years of the balance sheet date.

Due in1 year or lessLong-term loans payable73

0.44100

0.49500

Mizuho Trust & Banking Co.,

800,000

Inc.

at

Repayme

Sumitomo Mitsui Banking

Mizuho Bank, Ltd.

The Norinchukin BankThe Senshu Ikeda Bank, Ltd.

Lumppayment

Resona Bank, Limited

Development Bank of Japan

Aug. 31, 2023

sum

Resona Bank, Limited

Sumitomo Mitsui Banking

payable1,400,000

1,200,000

The Norinchukin BankMUFG Bank, Ltd.

loans

－

1,700,000

200,000

1,200,000

1,800,000－－－

200,000

The 77 Bank, Ltd.

－－

800,000－－ 1,700,000－ 1,300,000

The Senshu Ikeda Bank, Ltd.

－－ 1,800,000

800,000 0.27300

300,000

Corporation

1,200,000－

1,000,000

300,000

Corporation

800,000－

Repaym

1,200,000
200,000

－

－
－
－

Long-

－
－

(Note 1)

－ 1,000,000－－－

Sumitomo Mitsui Banking－ 1,200,000
200,000－

due date－

300,000

200,000

periodRepayment(%)

300,000

The Bank of Fukuoka, Ltd.

1,410,000

periodrate－

Sumitomo Mitsui Banking－

at end ofinterest－

300,000－

duringBalanceMizuho Bank, Ltd.

－

200,000

decrease

1,400,000－

200,000

AverageAmount of

MUFG Bank, Ltd.

300,000－

duringLimitedResona Bank, Limited－

periodSumitomo Mitsui Trust Bank,

400,000 0.69500

200,000

increase

Corporation

200,000

1,410,000

at beginning of

Sumitomo Mitsui Banking－

Mizuho Bank, Ltd.

ofMUFG Bank, Ltd.
Mizuho Bank, Ltd.

2,400,000－

The Yamaguchi Bank, Ltd.

Balanceperiod400,000

Ltd.

payableat end ofrate

1,400,000

Sumitomo Mitsui Trust Bank,

term

duringBalanceMizuho Bank, Ltd.
Corporationloans

decreaseAmountinterest

MUFG Bank, Ltd.
Sumitomo Mitsui Banking

Long-

AverageAmount of

28,050,000(Thousands of yen)
1 to 2 years
35,590,000

2 to 3 years
23,500,000

3 to 4 years
36,050,000

4 to 5 years
22,295,000

74

75

76

Unitholder Information

Unitholder Information

Unitholder Memo

Change in Investment Unit Price and Trading Volume (December 3, 2014 to May 31, 2020)
SHR´s investment unit price (left axis)

TSE REIT Index

Unitholder Memo

Trading volume (right axis)(JPY)
110,000(Unit)
400,000

90,000Account Closing Date

End of April and October of each year

Record Date for Determining
Distribution Payment

End of April and October of each year
(Cash distribution will be paid out within 3 months from the record date.)

General Meeting of Unitholders

General meeting of unitholders shall be convened on January 1, 2022 and onwards without delay,and subsequently be convened on January 1 every 2 years and onwards without delay. In addition,
the general meetings of unitholders may be held from time to time when it is necessary.

Date to Determine Exercising of
Voting Rights by Unitholders

Date stipulated in Article 12 of the Articles of Incorporation

Listed Stock ExchangeTokyo Stock Exchange, Inc. (Securities Code: 3309)

Newspaper Posting Public Notice

Nikkei Inc.

Transfer Agent

Mizuho Trust & Banking Co., Ltd.

Contact

Stock Transfer Agency Department,
Mizuho Trust & Banking Co., Ltd.
1-2-1 Yaesu, Chuo-ku, Tokyo, 103-0028
Phone: 0120-288-324 (Toll Free only in Japan)

300,000

70,000200,000

50,000100,000

30,0000Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar.
2014 2015
2016
2017
2018
2019
2020
(Note 1) Closing price and trading volume of the investment unit of SHR in a regular trading session at Tokyo Stock Exchange, Inc. are indicated.
(Note 2) As a two-for-one split of investment units was implemented on May 1, 2018, investment units have been traded at halved (the ex-rights) unit price on and after April 25, 2018. In consideration of the impact of the split, the above graph is based on actual figures of “Investment Unit Price” for April 24, 2018 and earlier being divided by two and actual figures of “Trading
Volume” being multiplied by two.
(Note 3) Change in TSE REIT Index is indicated after converting the closing price of TSE REIT Index on the listing date of SHR (December 3, 2014) to JPY 66,000, the amount gained after adjusting
the two-for-one split to the closing price of the investment unit of SHR in a regular trading session. Furthermore, TSE REIT Index refers to the weighted average-type index of market
capitalization of all REIT counters listed on the Tokyo Stock Exchange.

Concerning Procedures to Change Registered Address, etc.

Unitholder Composition（As of the end of the 11th FP ended Apr. 2020)

Financial institutions (including securities companies)
Individuals and others
Foreign firms, etc.

290,765 units (6.8%)
817,332 units (19.1%)
276,486 units (6.4%)

2,904,083 units (67.7%)

Number ofinvestment units
owned by owner type
Number ofunitholders
by owner type229 persons (1.2%)
338 persons (1.8%)

Concerning Receiving Cash Distribution
You can receive your “cash distribution” by bringing your “distributions receipt” to a nearby Japan Post Bank or post office.
In cases where the reception period has elapsed, please specify how you wish to receive dividends on the back of the “distributions receipt,” and then mail it to the place of contact mentioned above, or receive cash distribution directly at the service
counter of the head office/branch of Mizuho Trust & Banking Co., Ltd. In addition, with respect to future cash distribution, if
you wish to receive them through transfer to a bank account you specify or other measures, please contact your securities
company, etc.
Please receive your “cash distribution” on an early date as we will be unable to pay them if they are not received within 3
years from the commencement date of payments of cash distribution.

Total: 4,288,666 units

Total: 19,230 persons

Please contact your securities company to change registered address, name, etc.

Other domestic firms

18,451 persons (95.9%)

212 persons (1.1%)(Note) Total of ratios may not add up to 100.0% as ratios are indicated as rounded to the first decimal place.

Website of Sekisui House Reit, Inc.

IR Calendar
Closing month of
FP ending April

Announcement offinancial results for FP
ending April

Apr.

Jun.
May

Closing month of
FP ending October

Oct.

Aug.
Jul.

Sep.

Commencement of the payment of cash distributions for FP ending April
Dispatch of Semi-Annual Report for FP ending April (Japanese version)

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Announcement offinancial results for FP
ending October

Dec.
Nov.

Guide to website

https://sekisuihouse-reit.co.jp/en/

Feb.
Jan.

Mar.

Commencement of the payment of cash distributions for FP ending October
Dispatch of Semi-Annual Report for FP ending October (Japanese version)

SHR strives for timely and accurate information disclosure via
the website.
The latest cash distribution, financial, investment property
and other information useful to investors are made available
for viewing on the website.

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