Performance highlights

Message to our unitholders

Distribution per unit
Distribution per Unit
3rd Fiscal Period Ended April 2016

Since its listing on the Tokyo Stock Exchange Real Estate Investment Trust Section (the J-REIT

2,477yenmarket) on December 3, 2014, Sekisui House Reit, Inc. (“SHR”) has steadily accumulated a trackrecord, and has settled its accounts for the 3rd fiscal period (namely, the fiscal period ended April2016). I, on behalf of SHR, would like to extend my heartfelt thanks to unitholders as this could nothave been managed without your support.

Business results and distribution

Operating revenue(million yen)

Operating income(million yen)

Ordinary income(million yen)

Net income(million yen)

Distribution per unit
(yen)

2nd FP(ended Oct. 2015)

3rd FP(ended Apr. 2016)

4th FP (Forecast)(ended Oct. 2016)

5th FP (Forecast)(ended Apr. 2017)

3,379

3,467

4,052

4,151

2,290

2,278

2,633

2,683

1,952

1,967

2,281

2,343

1,951

1,966

2,280

2,342

2,458

2,477

2,550

2,620

I hereby report on the management status and financial results for the 3rd fiscal period of SHR.
The management performance for the 3rd fiscal period resulted in operating revenue of
3,467 million yen, operating income of 2,278 million yen, ordinary income of 1,967 million yen
and net income of 1,966 million yen.
Since its listing, SHR has been aiming for expansion of its asset size by continuous external growththrough utilizing the sponsor pipeline. As part of such efforts, SHR conducted its second public
offering in May 2016 (at the beginning of its 4th fiscal period) since its listing and acquired threeproperties (comprising an additional portion of a property part of which is already owned by SHR
and two new properties) for 26.6 billion yen with the funds raised, etc. With this public offering,
SHR’s asset size has grown from 152.9 billion yen comprising four properties at the end of the
3rd fiscal period to 179.5 billion yen comprising six properties, enabling SHR to make progress in
the realization of its external growth and diversification of its portfolio.
By focusing on prime properties—commercial properties that feature strategic locations or highquality - as its core investment targets and taking full advantage of the sponsor support fromSekisui House, Ltd. (“Sekisui House”), which has an established track record of developing
commercial properties, SHR will continue to seek to securestable earnings and steady growth of its investment
assets and thereby aim to maximize unitholder value.
I ask for the continued support and encouragementof unitholders.

Junichi Inoue
Executive Director of Sekisui House Reit, Inc.
President & Representative Director of
Sekisui House Investment Advisors, Ltd.

1

I Overview of SHR

Topics xpansion of asset size through the public offerings conducted forE
the second consecutive year since its listing

End of 1st FP(as of Apr. 30, 2015)

 cquisition of 3 recently built and high quality office buildingsAdeveloped by Sekisui House
Acquisition by utilizing preferential negotiation rights

Pipeline Support by
Sekisui House
IPO(3 properties)
JPY 114.3 bil

1st follow-on PO(1 property)
JPY 38.6 bil

Number of
Properties

2nd follow-on PO(3 properties)
JPY 26.6 bil

Asset Size
(Aggregate Acquisition Price)(billion yen)

Portion of additional
acquisition

Acquired portion

Diversification of portfolio

HommachiMinami GC

Hommachi GC

GC Shinagawa
Gotenyama

HK Yodoyabashi
GA

4

6

114.3

152.9

152.9

179.5

2 (6)

2 (17)

2 (17)

2 (33)

Hirokoji GA

End of 1st FP(as of Apr. 30, 2015)

Asset Size

After 2nd follow-on PO(as of June 14, 2016)
Nagoya area
3.5%

(billion yen)200

Osaka area
20.2%

Location Ratio(Acquisition pricebasis)

26.6
150

Osaka area
36.8%

179.5
152.9
114.3

152.9

HommachiMinami GC
20.2%

114.3

50

End of 1st FP(as of Apr. 30, 2015)

2

After 1st
follow-on PO

Greater Tokyo
59.6%

Greater Tokyo
79.8%

38.6

100

After 2nd follow-on PO(as of June 14, 2016)

4(Number of End-tenants)

Gotenyama
SH Building

End of 3rd FP(as of Apr. 30, 2016)

3

Number of Tenants

GC Shinagawa
Gotenyama

End of 2nd FP(as of Oct. 31, 2015)

End of 2nd FP(as of Oct. 31, 2015)

End of 3rd FP(as of Apr. 30, 2016)

2nd
follow-on PO

After 2nd
follow-on PO(as of June 14, 2016)

Aggregatre acquisition
price (billion yen)

114.3

Unrealized gain (Note)(billion yen)

5.9

11.9

17.8

20.0

LTV (total asset basis)
(%)

42.5

41.0

40.9

40.9

Distribution per unit
(yen)

1,603

2,458

2,477

152.9

152.9

Gotenyama
SH Building
45.1%

Investment Ratio(Acquisition pricebasis)

Hirokoji GA
3.5%
HommachiMinami GC
12.9%

Gotenyama SH
Building
28.7%

179.5

4th FP (Forecast) 2,550
5th FP (Forecast) 2,620(Note) “ Unrealized gain” is obtained by: for the end of each fiscal period, totaling the difference between the book value and appraisal value at theend of each fiscal period of each asset owned at the end of each fiscal period; for after the 2nd follow-on public offering, totaling the difference
between the book value and appraisal value at the end of the 3rd fiscal period of each asset owned at the end of the 3rd fiscal period and thedifference between the acquisition price of each asset acquired in the 4th fiscal period and its appraisal value at the time of the acquisition.
Amounts below the specified unit are rounded down.

The Japan

Another company
2.3%
Non-disclosure
34.6%

Non-disclosure
Tenant Ratio (Note) Research Institute,
34.6%
Limited 16.7%(Leased floor
Sekisui House
area basis)
65.4%
Sompo Japan
Nipponkoa
Insurance Inc.
16.8%

GC Shinagawa
Gotenyama
31.0%

Hommachi GC
21.5%

GC Shinagawa
Gotenyama
34.7%
The Dai-ichi Life
Insurance Company,
Limited 9.8%

HK Yodoyabashi GA
2.5%

3M Japan Limited
19.7%

The Japan ResearchInstitute, Limited
Non-disclosure 14.4%
Other 28 companies
21.9%
27.7%
Non-disclosure
21.9%
Sekisui House
Sompo Japan
78.1%
Nipponkoa
Insurance Inc. 3M Japan Non-disclosure
10.6%
12.9%
Limited12.5%(Note) Inner rings and outer rings of the doughnut graphs represent tenant ratio and end-tenant ratio respectively.

3

I Overview of SHR

Characteristics of SHR

3 Strategies of SHR

SHR is a J-REIT that has Sekisui House as its sponsor and invests incommercial properties centering on office buildings

SHR seeks to provide high-quality social capital and to maximize theunitholder value through the 3 strategies

Asset Size

Status of Portfolio

Aggregateacquisition priceOccupancy rate1

179.5 billion yen
6 properties

Number of owned
properties

Portfolio Quality

100.0%

Office buildings
ratio

 ll acquisitions are of recently built and high quality office buildings developed byA
Sekisui House
Reducing earthquake-related risks by owning properties with high quake-resistantperformance such as having a seismically isolated mechanism, etc.

Financial Base

59.6%
36.8%
3.5%

Greater Tokyo
Osaka area
Nagoya area

2

Long-term liability ratio
Fixed interest rateborrowing ratio

40.9%
88.1%
70.0%

JCR

GrowthStrategy

Taking full advantage of versatile support
by Sekisui House

Utilizing the pipeline support agreement for property acquisition to realize
external growthS electing a leasing agreement type from among a fixed-rent/pass-through typemaster lease, a direct lease, etc., in accordance with property characteristics

Credit Rating

LTV (total asset basis)

Investment in commercial properties focused on“strategic locations” and “high quality”

T he 6 properties owned are in the strategic locations of central Tokyo, Osakaand Nagoya

Location Ratio

5.4 years

Average building
age

99.9%
Total appraisal value 198.4 billion yen
Unrealized gain
20.0 billion yen(as of May 31, 2016)

Investment
StrategyE ntrusting Sekisui House with real estate management/operation and utilizing
information network, etc. on tenant attraction

AA– (Stable)(as of June 14, 2016)

3

Financial
Strategy

Stable and sound financial operations

 anaging LTV (total assets basis) (ratio of interest-bearing liabilities to total
M
assets) at a conservative level between 40% and 50%

Owned propertiesP romoting extension of borrowing periods, diversification of dates for
repayment and fixation of interest rates in order to reduce risks of fluctuation ininterest rates and refinancing risk
Obtained AA– rating (Rating Outlook: Stable) for the long-term issuer ratingfrom Japan Credit Rating Agency, Ltd. (JCR)
Garden City
Shinagawa
Gotenyama

4

Gotenyama SH
Building

HommachiMinami Garden
City

Hommachi Garden
City

HK Yodoyabashi
Garden Avenue

Hirokoji Garden
Avenue5

I Overview of SHR

Growth strategies that take full advantage of the versatile support by Sekisui HouseInternal growth strategies: sponsor support by Sekisui House

External growth strategies: pipeline support by Sekisui House rant of preferential negotiation rights with regard to the sale of domestic real estate, etc. owned orGdeveloped by Sekisui House
Provision of information on domestic real estate, etc. owned or developed by third parties
Provision of warehousing functions
Support for redevelopment of owned properties

Properties acquired by utilizing the pipeline support
All 6 properties SHR has acquired since its listing are properties developed by Sekisui House.

Provision of property management services for owned assets
Provisionof know-how and services related to operation management of highly value-added real estate
possessed by Sekisui HouseUpon acquiring properties in respect of which a certain period has passed since the date ofconstruction, coordination in terms of strategies such as renovation or repairment with valueenhancement, etc. after acquisition of such properties
Investigation and discussion regarding such matters as execution of master lease agreements informats responding to property characteristics

Seeking stable earnings and internal growth opportunities
Image of Lease Scheme
GC Shinagawa Gotenyama,
Hommachi GC, Hommachi Minami GC

HK Yodoyabashi GA,
Hirokoji GA

Sekisui House

Sekisui House

Gotenyama SH
Building

End-tenant(Sub-lessee)
HK Yodoyabashi GA (Osaka)Completion in July 2015

Hirokoji GA (Aichi)
Completion in Mar. 2011

GC Shinagawa Gotenyama (Tokyo)
Completion in Feb. 2011

Hommachi GC (Osaka)Completion in May 2010

Tenant(Lessee)Fixed-Rent
Type xamples of urban redevelopment projects within and outside
E
Japan by Sekisui House

LessorMaster Lease
Agreement

Pass-ThroughType

Direct Lease
Agreement

SHR(Note) “ Fixed-rent-type master lease” refers to a master lease in which a lessee pays a fixed amount regardless of the amount of rent sublessee pays to the lessee.
“Pass-through type master lease” refers to a master lease in which the rent paid by a lessee and the rent paid by a sublessee are always the same amount.

SHR’s characteristics in terms of internal growth
Governor of Osaka Award at the 14th
Osaka Machinami Awards in1994

CASBEE OSAKA OF THE YEAR 2013

Umeda Sky Building (Osaka)Completion in Mar. 1993

Grand Front Osaka (Osaka)Completion in Apr. 2013

Waterway Point(Singapore)

One Central Park
(Australia)

Status of preferential negotiation rights held by SHR
Property name

Address

Asset type

Garden City Shinagawa Gotenyama (Note 1)
Hommachi Minami Garden City (Note 1)
Hommachi Garden City (Note 1)

Shinagawa-ku, Tokyo
Osaka-shi, Osaka
Osaka-shi, Osaka

Office building
Office building
Hotel

Waterway Point

Punggol, Singapore

Retail property

One Central Park

Sydney, Australia

Retail property

Period of preferential
negotiation rights
From Oct. 16, 2014
From Oct. 16, 2014
From Apr. 24, 2015
From Dec. 1, 2016
to Nov. 30, 2019
From Dec. 1, 2016
to Nov. 30, 2019

Ratio of unacquired
floor area (Note 2) (%)
24.2
43.6
47.3
—
—

(Note 1) SHR has acquired a portion and has been granted preferential negotiation rights for the remaining portion.
(Note 2) “Ratio of unacquired floor area” refers to percentage of the unacquired floor area in respect of which SHR holds preferential negotiationrights for acquisition to the exclusively-owned area of the entire building. Unacquired floor area refers to the exclusively-owned area
in Garden City Shinagawa Gotenyama, Hommachi Minami Garden City and Hommachi Garden City for which SHR holds preferential
negotiation rights for acquisition.

6

Characteristic
1

Approximately 70% of the portfolio (ratio of lease types) (Note) adopts fixed-rent typemaster lease with Sekisui House. Rent revenue is being fixed in order to reduce theimpact of tenant vacation, etc. on earnings.

Characteristic
2

HK Yodoyabashi Garden Avenue and Hirokoji Garden Avenue adopt pass-through typemaster lease with Sekisui House. Since SHR can receive rent of the same amount as therent under the lease agreement concluded between Sekisui House and end-tenants, SHR
can benefit from rent revenue upside when the occupancy rate rises or the rent isrevised upward.

Characteristic
3

Gotenyama SH Building adopts direct lease in which the property is directly leased tothe end-tenant. A 20-year lease agreement has been concluded with the tenant, andthus the rent revenue is stable over the long-term.

(Note) “Ratio of lease types” refers to the ratio of the leased floor area for each lease type under the relevant lease agreements for the properties (themaster lease agreement if a master lease agreement has been concluded for the property) that is effective as of June 14, 2016, to the total of leased
floor areas indicated in such lease agreements.

7

I Overview of SHR

Stable and sound financial operations

Overview of portfolio

Interest-bearing liabilities

Outline of portfolio (as of June 14, 2016)
End of 2nd FP(As of Oct. 31, 2015)

End of 3rd FP(As of Apr. 30, 2016)

After 2nd follow-on
PO (Note 2)

Total interest-bearing liabilities (billion yen)

68.1

68.1

77.3

LTV (total asset basis) (%)

41.0

40.9

40.9

Fixed interest rate borrowing ratio (%)

79.4

79.4

70.0

Long-term liability ratio (%)

100.0

100.0

88.1

Average interest rate (Note 1) (%)

0.81

0.80

0.73

Average remaining term of interest-bearing liabilities (years)

5.3

4.8

4.3

Diversification of lenders (excluding short-term loans) (Note 2)

14.60

21.4

Mizuho Bank, Ltd.

8.70

12.8

Sumitomo Mitsui Trust Bank, Limited

8.15

12.0

Resona Bank, Limited

5.15

7.6

Mitsubishi UFJ Trust and Banking Corporation

4.30

6.3

Development Bank of Japan Inc.

3.65

5.4

3.65

5.4

Mizuho Trust & Banking Co., Ltd.

3.60

5.3

5.3%
5.4%
5.4%
6.3%
7.6%

2024

(Note 1) “Average interest rate” indicates a weighted average (annual) interest rate using thebalance of interest-bearing liabilities. In respect of the average interest rates of interestbearing liabilities for which an interest rate swap was conducted in order to hedge therisk of interest rate fluctuations, weighted average interest rates taking into account theeffect of the interest rate swap are used.
(Note 2) The information is as of June 14, 2016.

8

23.1

12.9

26.9

16,699.46

100.0

J-4

Hommachi Garden City

38.6

21.5

42.2

17,006.94

100.0

4.4

2.5

5.1

4,554.52

98.6

HK Yodoyabashi
Garden Avenue
Hirokoji Garden
Avenue
Total

New
New

6.35

3.5

6.78

4,442.75

100.0

179.55100.0

198.4891,939.59

99.9

0.5

Shinagawa-ku,
Tokyo
Osaka-shi,
5.3
Osaka
Osaka-shi,
6.1
Osaka
Osaka-shi,
0.9
Osaka
Nagoya-shi,
5.2
Aichi
5.4

1.9

5.4

4.5
4.2
7.5
2.7
1.9

(Note 1) The total appraisal values stated in the appraisal reports as of the end of the 3rd fiscal period is indicated for the assets owned as of the endof the 3rd fiscal period. The total appraisal values at the time of acquisition is indicated for assets acquired in the 4th fiscal period.
(Note 2) Occupancy rate stated above is as of May 31, 2016.

21.4%

Osaka Area:
Hommachi-Yodoyabashi Area

Osaka
StationGreater Tokyo:
Shinagawa Gotenyama Arearie
Lin dosa aaku radsei A ku
To Sa

Umeda Station

J-5

Long-termissuer ratingAA–

GotandaStationOsaka City Hall

J-4

Nishi Ward

Shinsaibashi
StationJ-3

Taisho
Ward

J-2

M
eg
ur
o

Ri
ve
r

Ya
ma
tedo
ri
Osaki Station

Yodoyabashi
Station Osaka Prefectural

Hommachi
StationJapan Credit Rating
Agency, Ltd. (JCR)

Shinagawa
StationMinato-ku

Shinagawa-ku

Namba
StationGovernment Office
Chuo
Ward

Kitashinagawa
Stationein Lin
u Ma
Keiky

3.1
2023

J-3

Hommachi Minami Garden
City

J-1

Nagoya Area:
Nagoya Meieki Area

J-6

NagoyaStation

Line
Main
oya
Nag
etsu
Line
Meit
Main
aido
Tok

2022

100.0

en

2021

19,999.97

kans

2020

56.3

Shin

2019

28.7

aido

2018

51.5

(stable)0
2017

Gotenyama SH Building

J-2

Tok

2016

100.0

ori
i-d
iek
Me

10.0

5

0

29,235.95

Shinagawa-ku,
TokyoPortfolio map

Credit rating (Note 2)

7.0

0

61.2

Kita
Ward

14.0

3.0

31.0

12.8%

Fixed interest rate borrowing

9.2

55.6

Sub-total

5.3

e
Lin

10

23.9%

68.1

12.0%

17.0
14.0

100.0

15.9

J-6

Total
interest-bearing
liabilities
billion yen

20

15

8,202.48

Portion of additional New
acquisition

te
no
ma
Ya

Floating interest rate borrowing

16.9

J-1

J-5

Diversification of repayment date (Note 2)(billion yen)

8.9

22.1

PML
value
(%)

i Keihin
DaiichThe Norinchukin Bank

100.0

39.7

Location

Tokaido Shinkanse
nSumitomo Mitsui Banking Corporation

21,033.47

Garden City Shinagawa Gotenyama

Building
age(year)

ine-dori L
Sakuratationnter S
sai CeKoku

a Linehiyam
Higas

Ring Route

23.9

44.3

J-1

Appraisalvalue (Note 1)(billion yen)

NagoyaExpressway

16.30

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Occupancy
rate (Note 2)(%)

Hanshin Expressway Loop
Route
TanimachisujiChuo-odori Street

Percentage(%)

Total leasablearea (m2)Property name

Midosuji

Balance(billion yen)

Acquisition Investment
price
ratio
(billion yen)(%)

PropertyNo.

ri
Sakura-doi
Nishiki-dor

Hirokoji-do
ri
200m

9

I Overview of SHR

Overview of portfolio
Osaka area

Greater Tokyo

Garden City Shinagawa Gotenyama

Environmentally friendly maison-like office building that blends in with the townscape ofabundant greenery and a long and distinguished historyrieLin -dousa dasak aie A kur
To Sa

Office building located along the Midosuji street, which is the main street in Osaka City, andis capable of being a landmark in the vicinity

Tokaido Shinkansen

Chuo-odori Street

Hommachi Minami
Garden City

Subway Nagahori Tsurumi ryokuchi Line

Yotsubashi
Station

Shinsaibashi Station

Nagahoribashi Station

Hanshin Expressway Loop Route

Chuo Ward

Chuo
Ward Office

Location
6-7-29 Kitashinagawa, Shinagawa-ku, Tokyo(indication of residential address)

Location
3-6-1 Kitakyuhojimachi, Chuo-ku, Osaka-shi, Osaka(indication of residential address)

Acquisition Price

55.6 billion yen

Acquisition Price

23.1 billion yen

Structure / Floors

RC, 9F/B1F

Structure / Floors

S/SRC, 25F/B2F

Total Floor Area

62,975.42m2

Total Floor Area

46,010.88m2

Total Leasable Area

29,235.95m2

Total Leasable Area

16,699.46m2

Gotenyama SH Building

J-4

Office building located upland with high business continuity incorporating a seismicallyisolated device

Shinagawa-ku

Subway Chuo

Line
et

Chuo-odori Stre

Nishi Ward
500m

SubwaySakaisuji Line

Nakanoshima Park
Kitahama
StationTemmabashi
Station

Hommachi Garden City

Hommachi Hommachi-dori Street
Sakaisuji Hommachi
StationStationHanshin Express
Higashi Osaka RouteSubwayTanimachi Line

Utsubo Park

Kitashinagawa
StationYodoyabashi
StationChuo Ward OfficeHommachi Minami
Garden City
Chuo Ward

Location
6-5-17 Kitashinagawa, Shinagawa-ku, Tokyo(indication of residential address)

Location
3-6-4 Hommachi, Chuo-ku, Osaka-shi, Osaka(indication of residential address)

Acquisition Price

51.5 billion yen

Acquisition Price

38.6 billion yen

Structure / Floors

S/SRC, 7F/B1F

Structure / Floors

S/SRC, 27F/B2F

Total Floor Area

19,812.85m2

Total Floor Area

49,163.16m2

Total Leasable Area

19,999.97m2

Total Leasable Area

17,006.94m2

Tanimachi
4-chome Station

Garden City
Shinagawa Gotenyama

Higobashi
StationLine
Main
KeikyuYamatedori
Osaki Station

Osaka City Hall

Tokaido Shinkansen

Gotenyama SH Building

Ri
ve
r

Complex facility capable of becoming a landmark as it stands on Midosuji street and its heightexceeds the conventional height control due to application of special urban renaissance district rules

Sakaisuji

te
ano
Yame
Lin

GotandaStationMeguro

Hommachi Garden City

Shinagawa
StationMinato-ku

KeihinDaiichirieLin -dousa dasak a
i A kur
e
To Sa

10

Sakaisuji Hommachi
StationSubway Chuo Line

Sakaisuji

Line
Main
KeikyuOsaki Station

Hommachi Garden City

Subway Sakaisuji Line

Kitashinagawa
StationShinagawa-ku

Midosuji
Subway Midosuji Line

Ri
ve
r

Yam
atedori

Hommachi-dori Street
Hommachi Station

Subway Yotsubashi Line

Gotenyama SH Building

Garden City Shinagawa Gotenyama

J-2

Hommachi Minami Garden City

Shinagawa
StationMinato-ku

KeihinDaiichi

te
ano
Yame
Lin

GotandaStation
M
eg
ur
o

J-3

SubwayYotsubashi Line
Hanshin E xpressway
Loop R outeSubwayMidosuji Line
MidosujiJ-1

Additionally Acquiredin the 4th FP

11

I Overview of SHR

Overview of portfolio

Overview of SHR and asset management company

Osaka area

J-5

HK Yodoyabashi Garden Avenue

Acquiredin the 4th FP

ashianabebOebashi
Station

Osaka
City Hall

SubwayMidosuji Line
Midosuji

SubwayYotsubashi Line

Hanshin E xpressway
Loop Route

Yodoyabashi
Station

500m

Naniwabashi
Station

4.4 billion yen

Structure / Floors

S/SRC/RC, 13F/B2F

Total Floor Area

16,953.28m2

Total Leasable Area

4,554.52m2

Transfer Agent

Hommachi
Station100%
ownership

Supervisory Director:
Shigeru Nomura

13 ExitMizuho Trust & Banking Co., Ltd.

Hommachi
Garden City

Supervisory Director:
Tatsushi Omiya
Administrative Agentfor Operation of
Administrative Instruments
Mitsubishi UFJ Trust andBanking Corporation

Independent Auditor

Parent Company of theAsset Management
Company / Sponsor

Ernst & Young ShinNihon LLC

SEKISUI HOUSE, LTD.

Asset Management Agreement

Administrative Agreement (Administration of Investment Units)

Asset Custody Agreement

General Administrative Agreement

Pipeline Support Agreement /Sponsor Support Agreement, etc.

Asset management company

Hirokoji Garden Avenue

Acquiredin the 4th FP

Organization chart

kan
sen

Line
Main
aido
Tok

hin

oS

aid

Tok

Line
Main
oya
Nag
etsu
Meit

ation
nter St
sai CeKoku

a Linehiyam
Higas

Hirokoji Garden Avenue

Proposalri
Sakura-do

Nishiki-dori

Structure / Floors

Investment
Committee

Compliance
Committee
President &Representative
Director

Hirokoji-do
ri200m

Total Floor Area

7,017.98m2

Total Leasable Area

4,442.75m2

Rejected

Rejected
Compliance
Officer

Rejected

6.35 billion yen
S/SRC, 12F/B1F

Remanded

Board ofDirectors

Location
4-24-16, Meieki, Nakamura-ku, Nagoya-shi, Aichi(indication of residential address)
Acquisition Price

Proposing department

AuditorRing Route

NagoyaExpressway

ori
i-d
iek
Me
NagoyaStationne-dori Li
SakuraDecision-making process

General Meetingof Shareholders

Office building located in the Nagoya Meieki area, a core area in Nagoya, with an elegant
exterior using natural materials

12

Executive Director:
Junichi Inoue

Yodoyabashi
Station

Nagoya area

J-6

SEKISUI HOUSE INVESTMENTADVISORS, LTD.

Board of Directors

Location
4-3-9 Fushimimachi, Chuo-ku, Osaka-shi, Osaka(indication of residential address)
Acquisition Price

Asset Management
Company

General Meetingof Unitholders

Kitahama
StationMagnified Map

HK Yodoyabashi Garden Avenue
Line
Subway Chuo
Chuo-Odori

SEKISUI HOUSE REIT, INC.

Asset Custodian
Mitsubishi UFJ Trust andBanking Corporation

Comfortable and safe office building with strength of iron and tenderness of natural stonea Wat nn him Statio
iha os
Ke akan
Higobashi
N e
Stationin
LStructure diagram

Real Estate
Investment andManagement Division

Management
Division

Disapproved

Compliance Officer
Investigation andapproval

Investment Committee
Deliberation andresolution

Compliance Committee

Attendance andassent by external
members are
required

Deliberation andresolution

Board of Directors
Deliberation andresolution

Board of Directors of Sekisui House Reit
Real Estate
Investment
Department

Real EstateManagement
Department

IR andFinance
Department

General Affairs
and Accounting
Department

Deliberation and approval (Note)(Note) "Approval" includes consent of SHR based on the approval.

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