Semi-Annual Report(From November 1, 2020 to April 30, 2021)

13th

Fiscal Period

Pictures on the cover

Acquired properties in FP13 (Ended April 2021)
MAST STYLE HIGASHIBETSUIN
Granmast Kayaba
MAST STYLE SHIRAKABEMINAMI
SHR disposed 1 residence and acquired 3 residences as asset replacement in FP 13.
All of the three properties acquired this time are located in Nagoya-shi, with 175 units
MAST STYLE HIGASHIBETSUIN, 27 units Granmast Kayaba, and 13 units (including one
office) MAST STYLE SHIRAKABEMINAMI, each of which is expected to have a wide range
of demand ranging from singles to families.

4-15-1, Akasaka, Minato-ku, Tokyo
https://sekisuihouse-reit.co.jp/en/

Securities Code3309

Ⅰ Overview of SHR

Message to our Unitholders

A vision for Sekisui House Reit, Inc.
Sekisui House Global Vision

Managing assets to better provide

Make home the happiest place
Corporate philosophy at Sekisui House Groupfor people, society and the future

Our Stance

Truth and trust

Maximize unitholder value

Ourfundamental
philosophy:

Provide high-quality social capital
A REIT that leads the way into an eraof the 100-year lifespanLove of
Humanity

Our objective

Our business focus

Superior quality

Comfortable housing
and ecologically soundcommunities

Features of SHR
1Priority investment in Prime Properties centering on“Strategic Location” and “High Quality”

2

Growth Strategy that Take Full Advantage of the
Versatile Support by Sekisui House Group

3

Strong financial foundation based on soundand stable financial operations

OthersPrime Properties

91.0 %

Ratio of Prime Properties(acquisition price basis)

Designate “high quality” residential and commercial properties located in “strategic locations”
as “Prime Properties” and prioritize investments in Prime Properties.

Asset
category
Residential
Properties

Usage Type

Investment
ratio

Residence

30%-55%

Officebuilding
Commercial
Properties

Hotel
Retail andother properties(acquisition
price basis)

30%-55%0%-30%
0%-10%

Target investment
ratio in themediumto long term
About
45%
About
45%
About
15%
The ratio of
Hotel isabout 10%Set priority investment areas andinvestment ratio in light of thecharacteristics of each asset categoryAssetcategory

Priority
investment area

Residential
Properties

GreaterTokyo

Commercial
Properties((acquisition
price basis)

70%orhigherThree Major
Metropolitan Areas
Greater Tokyo
Osaka area
Nagoya area

Investment
ratio

)

80%
or
higher(Note) “Three Major Metropolitan Areas” refers 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.

1

In the fiscal period under review, SHR disposed 1 residence toa third party in February 2021, and acquired 3 residences fromSekisui House Group, thereby worked to improve the quality of
its portfolio.
As a result, SHR owns 123 properties and its asset size is 535.8
billion yen (245.5 billion yen for office buildings, 251.0 billion
yen for residential properties, and 39.3 billion yen for hotels).
For the occupancy rate as of the end of the 13th fiscal period
ended April 2021, office buildings at 99.4%, residential
properties at 96.5%, hotels at 100%, and the portfolio as awhole at 97.3% which continued to maintain high levels inspite of COVID-19 pandemic.
As a result of the above, management performance for the fiscal period under review resulted in operating
revenue of 15,055 million yen, operating income of 7,989 million yen, ordinary income of 7,103 million
yen and net income of 7,103 million yen, with the distribution per unit declared for the fiscal period of 1,675
yen.
As the outlook for the end of the COVID-19 pandemic remains unclear, SHR will continue to make efforts
to respond flexibly in anticipation of environmental changes, while giving maximum consideration to thestability of the distribution.
In addition, SHR will continue to proactively disclose ESG-related information and expand dialogue withstakeholders together with Sekisui House, the sponsor that aims to become a leading company in ESG
management. In May 2021, we issued investment corporation bonds (Green Bonds) totaling 2 billion yen
on favorable terms as an ongoing initiative to manage real estate investments in consideration of ESG, andin June, MSCI ESG rating was upgraded to “A”.
I ask unitholders for your understanding of these efforts and for your continued support andencouragement.

Portfolio Development Policy
Build a portfolio with “residences” and“office buildings” as core assets

I would like to express our sincere gratitude for your continued
and loyal patronage.
I am Atsuhiro Kida, the Executive Director of Sekisui House Reit,
Inc. (“SHR”) since February 1, 2021.
I hereby report on the management status and financial results
for the 13th fiscal period ended April 2021.

July 2021
Executive Director of Sekisui House Reit, Inc.

Atsuhiro Kida

Contents
Overview of SHR ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙1Statement of Cash Distributions ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙48

Financial Section (Audited) ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ 42

Statement of Cash Flows ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙49

Financial Statements ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ 43

Notes to Financial Statements ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙50

Balance Sheet ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ 43

Supplementary Schedules ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙65Statement of Income and Retained Earnings ∙ ∙ 45

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

Statement of Changes in Net Assets ∙ ∙ ∙ ∙ ∙ ∙ ∙ 46

Unitholder Information ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙79
2

Ⅰ Overview of SHR

Performance Highlights
As of June 15, 2021
(announcement date of business results)

Distribution per unit (yen)13th FP ended Apr. 2021 Actual

1,675
14th FP ending Oct. 2021 Forecast

15th FP ending Apr. 2022 Forecast(Note)

1,625
Portfolio data

Number of owned properties

123 properties
Total acquisition price535.8 billion yen
Total appraisal value (as of the end of Apr. 2021)

610.1 billion yen
Occupancy rate

96.8%

Business Results and Distribution
Fiscal Period

Trend of Distribution per Unit (yen)12th FP
13th FP
ended Oct. 2020 ended Apr. 2021
(Actual)(Actual)14th FP
15th FPEnding Oct. 2021 ending Apr. 2022
(Forecast)(Note)(Forecast) (Note)

2,000
(yen)

1,554
(Note)

1,649(as of end of May 2021)

Highlights of FP13 Business Results

Portfolio PML rating(surveyed in Apr. 2021)

1.57%

1,500

Operating revenue(million yen)

14,826

15,055

14,578

14,521

Operating income(million yen)

7,868

7,989

7,452

7,392

Ordinary income(million yen)

6,993

7,103

6,540

6,481

500

Net income(million yen)

6,992

7,103

6,540

6,481

0

1,229 1,238

1,594

1,631 1,665

1,355 1,352
1,298 1,331

1,000
801

1th FP
2th FP
3th FP
4th FP
5th FP
6th FP
7th FP
8th FP
9th FP 10th FP 11th FP 12th FP 13th FP 14th FP 15th FP
ended
ended ended
ended ended
ended ended
ended ended
ended ended
ended
ended ending ending
Apr. 2015 Oct. 2015 Apr. 2016 Oct. 2016 Apr. 2017 Oct. 2017 Apr. 2018 Oct. 2018 Apr. 2019 Oct. 2019 Apr. 2020 Oct. 2020 Apr. 2021 Oct. 2021 Apr. 2022

(Note) The respective figures for “FP 14 ending Oct. 2021 (Forecast)” and “FP 15 ending Apr. 2022 (Forecast)” are as of June 15, 2021 (the announcement
date of business results) calculated based upon certain assumptions. Actual operating revenue, operating income, ordinary income, net income anddistribution per unit may differ materially due to various factors. The above forecasts are not intended to be guarantees of business results or theactual amount of distribution.

ActualActualActualActualActualActualActualActualActualActualActualAccomplishments for this period

97.1%(billion yen)

Disposition Date Disposition Price

Merger with
Sekisui House
Residential Investment
Corporation

600

123 properties

535.8 billion yen
119properties

500

Disposition

February 26,
2021

438.1

965

million yen

AA- (Stable)
3

532.9

121

properties

532.9

115

properties

457.3

400

1 property (Tokyo 23 wards)

300

Acquisition Date Acquisition Price

6 properties 6 properties
6 properties 6 properties

200

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

121

properties

Esty Maison Sangenjaya

4 properties 4 properties
3 properties

Japan Credit Rating Agency, Ltd. (JCR)

AA

112

properties

Credit Rating(Stable)Forecast

700

Asset replacement(as of the end of the 13th FP ended Apr. 2021)

98.8%

Forecast

Trend of Asset Size

LTV (total asset basis)

Fixed interest rate
debt ratio

Actual(Note) As a two-for-one split of investment units was implemented on May 1, 2018, and in consideration of the impact of the split, DPU and
NAV per unit for each period prior to the FP 8 are calculated by dividing the actual figures by two.

527.0

Long-term debt ratio

ActualAsset Size

Financial status and Credit rating

45.4%

1,685 1,675
1,649 1,625

Acquisition

April 1,
2021

179.5

200.7

200.7

152.9

114.3

Total
3,750

million yen(3 properties)

152.9

179.5

100

MAST STYLEHIGASHIBETSUIN

Granmast Kayaba

MAST STYLESHIRAKABEMINAMI

3 properties (Nagoya-shi)

0

10th FP
11th FP
6th FP
5th FP
4th FP
2th FP
3th FP
1th FP
8th FP
12th FP
13th FP
9th FP
7th FP
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
ended
Apr. 2015 Oct. 2015 Apr. 2016 Oct. 2016 Apr. 2017 Oct. 2017 Apr. 2018 Oct. 2018 Apr. 2019 Oct. 2019 Apr. 2020 Oct. 2020 Apr. 2021

4

Ⅰ Overview of SHR

Message from President & Representative Director of
Asset Management Company

Sekisui House Reit Inc., which has beensteadily growing

What are the future targets as adiversified REIT?
Ask Mr. Abe, who assumed office in Feb. 2021

Sekisui House Asset Management, Ltd.
President & Representative Director

Toru Abe

MissionDriving ESG activities with a focus on dialog withstakeholders while leveraging sponsor support toupgrade portfolio quality and improve profitability

Q

Please tell us about your background and your planned areas of focus as a
new CEO.

In 1990, I joined Sekisui House, Ltd. (Sekisui House), which is the sponsor of Sekisui House Reit, Inc. (SHR).
In the beginning, I worked mainly on condominium development.
Then, I was seconded to the asset manager for Japan Excellent REIT. That was Sekisui House’s first
involvement in the REIT business. There, I experienced taking the REIT public. After returning to Sekisui
House in 2009, I served as CEO of Sekisui House’s Australian subsidiary for ten and a half years, where I was
involved in the real estate development and homebuilding businesses in Australia.
Communication is important to my work.
Due to the COVID-19 pandemic, Sekisui House Asset Management, Ltd. (SHAM) tries to minimize office
work and relies primarily on remote work. But no matter the environment, communication with other
employees and outside parties is important.
5

After four months in my position, I am now able to put a face to the names of all employees. I stresscommunication because of my own personal experience with the importance of dialog with people. I
believe that active communication feeds idea generation and innovation and I plan to place a great deal ofimportance on communication not only among employees, but also with unitholders, business partners andall other stakeholders.

Q

Have there been any changes in real estate market trends amid the pandemic?

As a fundamental trend, Japan’s population decline has led to a decrease in new housing starts, including
both owner-occupied and rental housing. Amid the pandemic, however, some unexpected changes havematerialized.
In what used to be a slower part of the housing market, there has been strength in owner-occupied housing
in the suburbs of the Tokyo Metropolitan Area. Condominiums are beginning to provide space in common
areas for remote work.
Meanwhile, in the office market, the introduction of remote work has greatly changed how we get work
done. As the effects of the pandemic drag on, if the remote work is more adopted and established than thepresent state, there is the risk that demand for small office spaces could decline. If both residence and officebuilding are not “chosen properties”, we will not be able to win the competition for the future. Based onthat view, it is essential to add more value to each asset in the portfolio.
Looking forward over the next decade, we need to upgrade portfolio quality with an individualized focus oneach property.
6

Ⅰ Overview of SHR

Message from President and Representative Director of
Asset Management Company

Q

Q

How have your first four months as CEO been?

After taking over as CEO, first, I set out to visit each property to get a better understanding of the individual
properties in SHR‘s portfolio. When I visit a property, I try to walk around and see for myself. I walk from theclosest station to check out the neighborhood. If there is a grocery store, I stop in and check out the prices.
I try to see things as if I lived there myself.
I also seek out input from our local property managers and tenants to assess the current situation and whatneeds to be done. Moving forward, I would like to leverage that research to brainstorm with the involved
party and employees and generate ideas that will contribute to asset value appreciation. At the same time, I
would like to actively implement measures that will contribute to our ESG goals, as well.

Q

You talk about actively pursuing ESG goals.
Please tell us about initiatives on that.

Last October, the Japanese government announced its vision for carbon neutrality by 2050. In recent years,
natural disasters other than earthquakes, such as sudden, heavy downpours and typhoons, have intensified.
As a result, many have come to the realization that climate change is an urgent problem.
I experienced the severe impact of global warming while working in Australia. The ozone hole exposes
Australia to ultraviolet rays about seven times as intense as that in Japan. Australia has the highest incidence
rate of skin cancer in the world. So, people there have become sensitive to environmental problems
earlier than many of us in Japan. When I first transferred to Australia in 2009, the Australian government
focused efforts on drought countermeasures. Now that climate change has progressed further, flooding
countermeasures are needed urgently.
I will advance our ESG initiatives with a strong sense of mission, rooted in the belief that we must practiceand preach ESG if we wish to stay in business as a first step, we have identified materialities and set KPIs for
SHR in Environment, Social and Governance areas. Moving forward, we will endeavor to address societal
issues, secure stable earnings over the mid-to long-term and achieve growth in assets under management
to maximize unitholder value and create a more prosperous future.

Please tell us about any other areas of focus outside ESG.

This may be included in ESG, but employee health and happiness are equally important. Amid the ongoingreform of working styles, we must also promote the expansion of diversity. Another important theme is thedevelopment of human resources, including the identification of the next generation of leaders. We hopethat idea creation and innovation through communication will lead to employee’s growth and SHAM’s
development.

Q

Finally, share with us your ambitions as CEO.

Even as remote work and AI gain adoption, I will place importance on dialog with people, based on a strong
belief that it is people, and only people, who make things happen.
I will pursue my work by gaining understanding and cooperation through solid dialog with people.
Additionally, through smooth communication with our sponsor, I will actively incorporate ESG perspectives
and build pioneering assets that fit the Sekisui House mold.
Finally, I hope to continue to benefit from the unwavering support from all our stakeholders.

ProfileSekisui House
Asset Management, Ltd.
President &Representative Director

Toru Abe
TopicsCertification rank of 4 residential properties were upgraded throughre-acquisition of DBJ Green Building Certification (examples)

Main profiles
Apr. 1990
Aug. 2005

Introduced environmentally

Apr. 2009

conscious facilities as

Right person : Atsuhiro Kida, Executive Director of Sekisui House Reit, Inc.

initiatives for Energy
Reduction

Feb. 2021
Prime Maison Asakusabashi

7

Oct. 2019

Prime Maison Takami

Prime Maison Central Park

Sekisui House Ltd.
Seconded to JAPAN EXCELLENT ASSETMANAGEMENT CO., Ltd.
Seconded to Sekisui House Australia Pty Ltd.,CEO & Managing Director
Sekisui House Ltd., Chief Manager,Tokyo
Condominium Department
Seconded to Sekisui House
Asset Management, Ltd.,
President & Representative Director8

Ⅰ Overview of SHR

Portfolio Map

As of June 15,2021 (the announcement date of business results)
Acquisition price basis

Usage type ratio(Note 1)

Ratio of Area(Note 1)

Hotel
7.3%
(2 Properties)

535.8

Gotenyama SH Building

GC Shinagawa Gotenyama

PM Hongo

PM Kuramae

PM Shinagawa

PM Ginza East

Residence
46.8%(115 Properties)

Under 5 years
3.1%(8 properties)

Average
Building Age

Three Major
Metropolitan
Areasbillion yen
Akasaka GC

15 years or more
Others
19.0%
4.6%(16 Properties) (33 Properties)

Nagoya area
5.0%
(13 Properties)

Asset Size

Building age ratio(Note 1)(Note 2)

11.6

95.4%

years

Office Building Osaka area
45.8%
26.6%
(7 Properties) (13 Properties)

Greater Tokyo
63.8%(81 Properties)

10 yearsor more but
less than 15 years
65.1%(67 properties)

OthersPM Musashinonomori

PM Mitatsunamachi

PM Gotenyama East

PM Daikanyama

Residence/

PM Ebisu

PM Yokohama Nihon-odori

PM Shirokane-takanawa

PM Ichigayayamabushicho

Office building/3

properties

Residence/78

3

PM Odorikoen

PM Minami 2-jo

PMKamokamogawa

MAST Hakata

PM Central ParkEM ShizuokaTakajo

GM Hirose-dori

Properties

Nagoya Area

EM Toyosu Residence

81 properties

Greater Tokyo

16 properties

PM Gotenyama West

Sapporo-shi

PM Asakusabashi

5 years ormore butless than
10 years
12.8%(16 Properties)

13 properties

Office building/1

property

Residence/

12

properties

Sendai-shi
Residence/

properties

1

Property

Kanazawa-shi
Residence/
PM Shirokanedai Tower

PM Otsuka

Hirokoji GA

1

Property

Kitakyusyu-shi

Fukuoka-shi

8

Property

Properties

PM Higashisakura

PM Gokiso

Yokkaichi-shi
Residence/

Residence/

1

Residence/

1

Osaka Area

Property(Note 1)14 properties

Office building/

3

MS HIGASHIBETSUIN

GM Kayaba

MS SHIRAKABE MINAMMI

Acquired in FP13

Acquired in FP13

Acquired in FP13

properties

Residence/

9

properties

Hotels2

properties

Shizuoka-shi
Residence/

1

Property
Hommachi Minami GC

PM:Prime Maison EM:Esty Maison GC:Garden City GA:Garden Avenue GM:Granmast MS:Mast Style

9

Hommachi GC

HK YodoyabashiGA

PM Kitatanabe

PM Yuhigaoka

The Ritz-Carlton, Kyoto(Note 1) “Hommachi Garden City” is counted as two properties –one for the office portion and one for the hotel portion- when calculating figures for “Usage type ratio” and “Number of properties
in Osaka area”, and is counted as one property when calculating figures for “Area ratio” and “Building age ratio”.
(Note 2) “Esty Maison Yokohama-aobadai” is counted as two properties- one for North and one for South –when calculating diversification by building age.

10

Ⅰ Overview of SHR

ESG Initiatives
SocialBasic initiative
SHAM and SHR contribute to a sustainable society by conducting real estate investment management with due
consideration given to ESG in accordance with the Sustainable Vision advocated by Sekisui House, the sponsor, whichaims to become a leading company in ESG management.
SHAM has established Sustainability Policy in order to connect its overall business operations with sustainability
objectives.
Moreover, the Sustainability Committee sets up targets, monitors compliance, evaluates the effect of measures
implemented, and investigates improvement measures on a regular basis.

SHR promotes to initiatives for disaster prevention to enable tenant companies and residents to stay with security and safety.
SHR has also contributed to local communities by introducing share bikes and Food Truck to some properties. SHAM has
created a comfortable working environment by introducing system of working from home as a preventive measure against
COVID-19. SHAM has also made efforts to encourage employees to acquire qualifications to develop expertise.

Contributions to Society
Matching employee donations program :Sekisui House Matching Program
Employees set aside the amount they want from their salaries and Sekisui
House adds the same amount of subsidies to make donations.

Issuance of ESG Report
SHR issued its first ESG Report (English Ver.) in January 2021 to proactively disclose ESG-related informationand strives to enhance dialogues with stakeholders.
SHR identified materiality (Important Issues) and established action plan and targets for each materiality andpromote efforts for achievement.

Initiatives/ External Certifications
MSCI ESG rating was upgraded
to “A”MSCI ESG ratings, which serves as
the selection criterion for MSCIJapan ESG Select Leaders Index,
has been improved to “A” (June2021)

Ratified the Principles for
Responsible Investing（PRI）
SHAM agreed with and ratified thePrinciples for Responsible Investing (PRI)

Initiatives related to the pandemic

Acquired the GRESB Assessment

Acquired green certifications

Acquired a “Green Star” for the 4th
consecutive year under the GRESB Real
Estate Assessment (2020)
Acquired highest rank “A”
under the GRESB Disclosure
Assessment (2020)

Green certifications ratio of 55.2%

Expressed agreement with TCFD
SHAM expressed agreement with TCFD
recommendations(July 2020)(March 2019)(Total floor area basis, as of June 15,2021）

MUFG ESG Rating Certificate
for J-REIT supported by JCR
SHR and SHAM acquired thehighest “S rank”

・Utilize web-conferencing
・Introduce quarantine leave
・Install anti-aerosol panels and partitions in
the office・Disinfect the workplace and check employee
body temperatures

GovernanceFor the purpose of tightening examinations on transactions with interested parties, including the acquisition of portfolio
assets and the entrustment of property management services, SHAM has adopted frameworks each decision to be made by
Investment Committee and Compliance Committee must be conditional upon the attendance and assent by external members appointed from among professionals who have no special interest with interested parties of SHAM. Furthermore, SHAM
stipulates Rules for Transactions with Interested Parties concerning transactions between the interested parties of SHAM and
SHR as an internal rule to exclude adverse effect of conflicts of interest. For example, price of property acquisition from interested parities must be lower than the appraisal value, etc. determined by a real estate appraiser who is a non-interested party.

Activities that linked to unitholder interests

Disclosure to and dialog with stakeholders

Performance-linked fee is adopted as part of asset management fee

Participated in online seminars for individual investors
Created a new webpage for individual investors andstrengthened information disclosure(1) Linked to total assets and unit price performance

Total Assets × (0.14% (annual rate) + Rates linked to the TSE REIT Index) (Note1)(2) Linked to DPU and operating income

Environment(Distributable amount per unit × operating Income (Note2)× 0.002%) ×2(Note3)

In recent years, lifestyle of people and corporate activities are exposed to risk by climate change due to global warming.
SHR recognizes that resolving environmental issues such as climate change is one of the important key issues in ourpolicy of contributing to the realization of a sustainable society. Based on this recognition, SHR sets reducing targets forthe environment-related indicators contribute to decarbonization.
In accordance with the Gohon no ki (“five trees”) project promoted by Sekisui House, SHR conducts maintenance andmanagement of planting and other greenery measures, centering on tree species with consideration given to the native
vegetation and other ecosystem matters.

Reduction of CO2 emissions(Note 1) The rate is fluctuated depending on the performance-comparison of the SHR’s
investment units and the TSE REIT Index.

(Note 2) “Distributable amount per unit” and “Operating Income” are before deductionof asset management fee linked to DPU and operating income.

(Note 3) As SHR implemented a 2-for-1 split of the investment units with May 1, 2018as the effective date, Management FeeⅡ (asset management fee linked to DPU
and operating income) is calculated by multiplying by 2, which is the split ratio.

For more ESG information of SHR, please refer to the website below

https://sekisuihouse-reit.co.jp/en/esg/index.html

Target (Target year: 2030)

Portfolio CO2 emissions (intensity) Reduce 20% vs. FY 2018 levels
Introduce environmentally friendly features such as solar panels, LED
lighting and laminated Low-e double glazed windows, which featuresinsulating and heat-reflecting capabilities.
Solar panels（Garden City Shinagawa Gotenyama）

11

12

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.

13(2) Management Environment and Management Performancea. Management Environment
During the fiscal period under review, while the Japanese economy continues to recover from amid severe situation
due to the impact of COVID-19, some weaknesses are observed.

Under such circumstances, in the real estate leasing market, regarding the 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 rice basis) as of April 30, 2021 ("as of the end of the fiscal period under review"), residences showedsigns of weakening in demand for narrow single-type rents due to the economic impact on single residents, who
are vulnerable to a change in the employment environment. However, overall occupancy rate of new contract rents
remained at a level above the rents in the past, and occupancy rates have stayed strong. In office buildings,
vacancy rates in the market trended upward as tenant relocation needs continued to be limited, but the impact
was limited. As a result, occupancy rates and rent levels of office buildings remained firm. On the other hand,hotels that constitute approximately 7% of SHR's portfolio (on an acquisition price basis) have continued thesevere situation as travel demand has stagnated worldwide due to travel and immigration restrictions imposedby each country in response to the expansion of COVID-19, and domestic demand has also declined.
In the real estate transaction market, though the asset type which is less impacted by COVID-19 had a tendency
to be prefered, investors in Japan and overseas have continued to have a strong desire to acquire properties
against the global monetary easing and other factors, 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.
b. Management Performance

The number of properties SHR owned as of the end of the fiscal period under review to 123 (comprising 115
residential properties and 8 commercial properties) with an aggregate acquisition price(Note) of 535,838million yen(251,018 million yen for residential properties and 284,820 million yen for commercial properties).
Moreover, the occupancy rate of SHR’s investment assets as of the end of the fiscal period under review stood at
96.5% for residential properties, 99.5% for commercial properties and 97.3% 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

SHR raised a total of 3,000 million yen in short-term borrowings on April 1, 2021 to fund the acquisition of trust
beneficiary rights in real estate and to fund a portion of related expenses, as well as to refinance a total of 20,950
million yen in borrowings due this term. As a result, the balance of interest-bearing liabilities as of the end of
the fiscal period under review is 252,942 million yen and the ratio of total interest-bearing liabilities to total
assets (“LTV (total assets basis)”) is 45.4%.

b. Credit Rating

The following table sets forth the status of credit ratings of SHR as of the end of the fiscal period under review.
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

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

Issuer rating: AARating outlook: Stable14(4) Overview of Business Performance and Distributions
Results in the fiscal period under review are operating revenue of 15,055 million yen, operating income of 7,989

million yen and ordinary income of 7,103 million yen, resulting in net income of 7,103 million yen. In addition,
concerning cash distributions, SHR decided to distribute 7,183 million yen, which is the amount of unappropriatedretained earnings after adding reversal of reserve for temporary difference adjustments (157 million yen) andreversal of reserve for reduction entry (26 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”)) and reserving reserve for reduction entry (103 million yen)
stipulated in Article 65-7 of the Special Taxation Measures Act.

2.

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.

Date

Unitholders’ capital(million yen)

Event

Increase(Decrease)

Balance

Total number ofinvestment units
issued and outstanding(units)Increase(Decrease)

Note

Balance

June 21, 2016

Third-party allotment

590

100,040

4,800

894,000(Note 1)

May 24, 2017

Public offering

9,661

109,70271,400965,400(Note 2)June 12, 2017

Third-party allotment

487

110,1893,600

969,000(Note 3)

May 1, 2018

Split of investment units―

110,189

969,000

1,938,000(Note 4)

May 1, 2018

Allocation of investment
units through merger―

110,189

1,824,091

3,762,091(Note 5)June 10, 2019

Public offering

37,162

147,351

501,500

4,263,591(Note 6)

July 9, 2019

Third-party allotment

1,858

149,21025,075

4,288,666(Note 7)(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)

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.
9th fiscal period
Fiscal period

15

10th fiscal period 11th fiscal period 12th fiscal period 13th fiscal period

From: Nov. 1, 2018 From: May 1, 2019 From: Nov. 1, 2019 From: May 1, 2020 From: Nov. 1, 2020
To: Apr. 30, 2019 To: Oct. 31, 2019 To: Apr. 30, 2020 To: Oct. 31, 2020 To: Apr. 30, 2021

High (yen)85,400103,700

99,70078,70093,100Low (yen)

67,10077,20047,15062,50072,70016

3.

Performance of Distribution, etc.
Distribution per unit for the fiscal period under review (the 13th fiscal period) is 1,675 yen. The policy is to
distribute 7,183 million yen, which is the amount of unappropriated retained earnings after adding reversal ofreserve for temporary difference adjustments (157 million yen) and reversal of reserve for reduction entry (26million 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) and reserving reserve for reduction entry (103 million yen)
stipulated in Article 65-7 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 amountof cash distribution(thousand yen)[Distribution of earnings perunit] (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 amountof refund of investment in capital(thousand yen)[Distribution amount fromreserve 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
in capital (thousand yen)[Distribution amount from
distribution reducing unitholders’capital for tax purpose out of
amount of refund of investment
in capital per unit] (yen)

9th fiscal
10th fiscal
11th fiscal
12th fiscal
13th fiscal
periodperiodperiodperiodperiodFrom: Nov. 1,
From: May 1,
From: Nov. 1,
From: May 1,
From: Nov 1,
2018
2019
2019
2020
2020
To: Apr. 30, 2019 To: Oct. 31, 2019 To: Apr. 30, 2020 To: Oct. 31, 2020 To: Apr. 30, 2021
5,894,142

7,405,454

6,991,331

6,992,995

7,103,009―

775,495－－

103,708

5,996,773

6,994,814

7,140,628

7,226,402

7,183,515[1,594][1,631][1,665][1,685][1,675]5,996,773

6,994,814

7,140,628

7,226,402

7,183,515[1,594][1,631][1,665][1,685][1,675]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

4. Future Management Policy(1) Future Trends Outlook
It is expected that the Japanese economy will continue to recover, partly due to the effects of various policies andimprovements in the overseas economy, as it takes measures to prevent the spread of COVID-19. However, paying
close attention to the rising risk of undermining domestic and global economy by COVID-19 is needed. In addition,
it is necessary to monitor the effect of fluction in financial and capital markets closely. Against this backdrop,with regard to residence, which is living base in the real estate leasing market, SHR believes that it is necessary
to closely monitor the potential decline in the influx of population into the Tokyo metropolitan area, which isaffected by COVID-19, and the impact of the new normal on tenant trends in residence areas. With regard to
office buildings, which is operation bases in the real estate leasing market, SHR anticipates that vacancy rates
in the office market will continue the upward trend, and SHR believes that SHR should closely monitor trendsof new rent levels.
As for hotels, SHR believes that demand for hotel rooms is expected to remain severe for the time being due tofactors such as the decrease in the number of foreign tourists visiting Japan due to immigration restrictions ineach country and a decline in the number of domestic tourists. 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 thesituation of COVID-19 (including the period required for the 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 of
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.

17

18

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. In relation to management of owned assets, by concluding a sponsor
support agreement with Sekisui House, SHR and SHAM can seek (i) technologies and know-how that contributeto the improvement of tenant satisfaction or other factors, including energy efficiency and eco-friendliness, that
contribute to the renovation/value enhancement of properties, (ii) personnel support, including provision of know-

5.

Significant Subsequent Events
Not applicable.
(Reference Information)(1) Issuance of the Investment Corporation Bonds
SHR decided to issue the investment corporation bonds (The Investment Corporation Bonds) as follows on May
13, 2021 in accordance with the comprehensive resolution issued by the Board of Directors on March 3, 2021
regarding the issuance of investment corporation bonds and the payment was completed on May 19, 2021.

how required for the operation of SHR, and (iii) support in areas such as negotiation of master lease agreementswith regard to commercial 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.
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.

passu clause among specified investment corporation bonds) (Green Bonds)b. Total issue amount:c.

Interest rate:

2,000 million yen
0.460% per annum

d. Payment date:

May 19, 2021

e. Collateral and guarantee:

No secured mortgage or guarantee is applicable, and no assets are specifically reserved as
security for the Investment Corporation Bonds.

f.

Redemption method and date:

The total amount will be redeemed on May 19, 2031.
The Investment Corporation Bonds may be repurchased and cancelled at any time after thepayment date unless otherwise specified by Japan Securities Depository Center,
Incorporated or laws and regulations.

g. Credit ratings:

AA (Japan Credit Rating Agency, Ltd.)h. Fiscal agent, issuing agent
and paying agent:

MUFG Bank, Ltd.

i.

The funds were used for the early repayment of long-term borrowing on May 20, 2021. (Note)

Specific use(Note) For details of the early repayment is as follows.

Category

Longterm

19

Sekisui House Reit, Inc. Ninth Series Unsecured Investment Corporation Bonds (with paria. Name:Lenders
MUFG Bank, Ltd.,
Mizuho Bank, Ltd.
and Sumitomo
Mitsui Banking
Corporation

Balancebeforerepayment(million yen)
2,000

Repayment
amountBalance after
repayment

Drawdown

2,000－

November 30,(million yen)(million yen)

date

2020

repayment

Scheduled

Actualrepayment

November 30,

May 20,

date

2022

date

2021

20

Outline of the investment corporation
1.

3.

Status of Capital
Fiscal period

As of the end of As of the end of As of the end of As of the end of As of the end of
9th fiscal
10th fiscal
11th fiscal
12th fiscal
13th fiscal
periodperiodperiodperiodperiod(Apr. 30, 2019) (Oct. 31, 2019) (Apr. 30, 2020) (Oct. 31, 2020) (Apr. 30, 2021)

Total number of investment units
authorized (units)

20,000,000

20,000,000

20,000,000

20,000,000

20,000,000

Total number of investment units
issued and outstanding (units)

3,762,091

4,288,666

4,288,666

4,288,666

4,288,666

Unitholders’ capital (million yen)

110,189

149,210

149,210

149,210

149,210

Number of unitholders (persons)

18,73618,986

19,23019,27918,9422.

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

Custody Bank of Japan, Ltd. (Trust Account)

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

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.
Position

Executive
DirectorName

Key concurrently held position, etc.

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

Atsuhiro Kida

Director,
Sekisui House Asset Management, Ltd.

―

Junichi Inoue (Note 2)

President & Representative Director,

Sekisui House Asset Management, Ltd.

―

President, Shigeru Nomura Certified Public
Shigeru Nomura
Supervisory
Director

Independent
AuditorAccountant OfficeOutside Director, Eiken Chemical Co., Ltd.
Member of Corporate Revitalization

1,800

Committee, The Resolution and Collection
Corporation (RCC)
Tatsushi Omiya

Outside Director, QB Net Holdings Co., Ltd.
Lawyer, Lex Law OfficeOutside Director, BTC Corporation

Ernst & Young
ShinNihon LLC

―

1,800
16,500(Note 3)1,001,383

23.35

The Master Trust Bank of Japan, Ltd. (Trust Account)739,425

17.24

person. In addition, supervisory directors may be officers of other corporations other than those stated above, but none of suchSekisui House, Ltd.

200,750

4.68(Note 2) Junichi Inoue resigned as an Executive Director on January 31, 2021, and Atsuhiro Kida, Substitute Executive Director was

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

174,735

4.07(Note 3) The total amount of compensation for the independent auditor, as stated above, is an approximation and includes compensation for

Custody Bank of Japan, Ltd. (Securities Investment Trust Account)

116,889

2.73

STATE STREET BANK WEST CLIENT - TREATY 505234

61,082

1.42

SSBTC CLIENT OMNIBUS ACCOUNT

42,7581.00

JP MORGAN CHASE BANK 385771

40,6350.95

JAPAN SECURITIES FINANCE CO., LTD..

40,526

0.94

THE SHINKUMI FEDERATION BANK

37,729

0.88

Total

2,455,912

57.27(Note)(Note 1) None of the executive director or supervisory directors owns SHR investment units in their own name or in the name of anothercorporations, including those stated above, has vested interest in SHR.
appointed as the Executive Director on February 1, 2021.
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.

Matters Concerning the Director’s Liability Insurance Contract
The directors’ liability insurance contract concluded by SHR is as follows.
Scope of insured person
Overview of the contents of the Director’s Liability Insurance Contract

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

(Overview of Insured Events Subject to Compensation)
SHR concluded a directors' liability insurance contract with an insurance company as set forth in
Article 116-3(1) of the Investment Trust Act, and covers any damage that may arise when theinsured assumes liability for the execution of its duties or receives a claim for the pursuit of suchliability.
All Exective Directors andSupervisory Directors(Ratio of Insurance Premiums to be Borne)

All insurance premiums for all insured persons are borne by SHR(Measures to Ensure that the Appropriateness of the Execution of Duties by Directors, etc. is not
Impaired)
Up to 100 thousand yen for each insured person and up to 1 million yen for each series of liability
are set as the immunity amount.

21

22

5.

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

Condition of investment assets
1.

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.

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 12th fiscal
As of the end of 13th fiscal
periodperiod(Oct. 31, 2020)(Apr. 30, 2021)
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(Note 2)

Greater Tokyo

187,83533.9

186,270

33.5

Other areas

56,858

10.3

60,57910.9

Three major
metropolitan areas

278,38150.2

277,526

49.9

―

―

―

―

Total of real estate in trust

523,075

94.4

524,375

94.2

Deposits and other assets

30,991

5.6

32,193

5.8

Total amount of assets

554,067

100.0

556,569

100.0

Residential
properties
Commercial
properties

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

Book value
at the endof period(million yen)

Leasablearea(m2)

Leasedarea(m2)

Garden City Shinagawa
Gotenyama

70,27338,577.99

38,577.99

100.0

13.0

Gotenyama SH Building

49,74519,999.97

19,999.97

100.0

7.3

Hommachi Minami Garden City

42,67029,657.53

29,406.32

99.2

8.6

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

36,60317,006.94

17,006.94

100.0

6.1

Akasaka Garden City (Note 7)

28,741

12,472.81

11,964.26

95.9

4.5

The Ritz-Carlton, Kyoto(Note 8)

22,197

11,496.08

11,496.08

100.0

3.2

Hotel

Hommachi Garden City
(Hotel portion)(Note 6)

16,85918,092.98

18,092.98

100.0

2.7

Hotel

Esty Maison Ojima

8,365

9,905.97

9,417.36

95.1

1.7 Residence

Esty Maison Kinshicho II

7,996

9,469.65

9,258.73

97.8

1.5 Residence

Prime Maison Shirokanedai
Tower

7,961

6,772.89

6,392.93

94.4

1.6 Residence

291,414

173,452.81

171,613.56

98.9

50.2

Name ofreal estate, etc.

(Note 1)

Total

(Note 2)

(Note 3)

Occupancy
rate(%)(Note 4)

Usage
type
Officebuilding
Officebuilding
Officebuilding
Officebuilding
Officebuilding―(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,

23

24

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. foreach 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 forrespective properties, the figure indicates the value obtained by multiplying the leasable area of real estate or real estate in trust (or(Note 3)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

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

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
The Ritz-Carlton, Kyoto, the figure indicates the area corresponding to the quasi co-ownership interest owned by SHR. The same
shall apply hereinafter.

Property
number(Note 1)

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

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

R-001

Esty Maison Ginza

Chuo-ku, Tokyo

Real estate trust
beneficiary interests

R-002

Esty Maison Azabunagasaka

Minato-ku, Tokyo

Real estate trust
beneficiary interests

1,765

1,910

2,024

2,270

6,483

7,120

(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

R-003

Esty Maison Ebisu II

Shibuya-ku, Tokyo

Real estate trust
beneficiary interests

R-004

Esty Maison Ebisu

Shibuya-ku, Tokyo

Real estate trust
beneficiary interests

921

916

operating revenue of each property for the fiscal period under review to total property-related operating revenue of each property of
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 shall

R-005

Esty Maison Kanda

Chiyoda-ku, Tokyo

Real estate trust
beneficiary interests

1,559

1,800

R-006

Esty Maison Kitashinjuku

Shinjuku-ku, Tokyo

Real estate trust
beneficiary interests

1,543

1,750

R-007

Esty Maison
Asakusakomagata

Taito-ku, Tokyo

Real estate trust
beneficiary interests

2,102

2,430

R-008

Esty Maison Kawasaki

Kawasaki-shi,
Kanagawa

Real estate trust
beneficiary interests

2,418

2,700

R-010

Esty Maison Kameido

Koto-ku, Tokyo

Real estate trust
beneficiary interests

1,506

1,840

R-011

Esty Maison Meguro

Meguro-ku, Tokyo

Real estate trust
beneficiary interests

1,076

1,250

R-012

Esty Maison Sugamo

Toshima-ku, Tokyo

Real estate trust
beneficiary interests

1,601

1,800

2,971

3,070

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(Note 6)apply 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) For “The Ritz-Carlton, Kyoto”, SHR owns 49% quasi co-ownership interest of trust beneficiary interest in real estate for the property
as of the end 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.

Residence

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

897

972

R-015

Esty Maison Minamihorie

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,045

1,130

R-016

Esty Maison Gotanda(Note 4)

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

3,043

3,440

R-017

Esty Maison Oisendaizaka

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,738

2,950

R-018

Esty Maison
Shinagawa Seaside

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,122

2,420

R-019

Esty Maison Minamiazabu

Minato-ku, Tokyo

Real estate trust
beneficiary interests

1,240

1,370

R-020

Esty Maison Tsukamoto

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,033

1,110

R-021

Esty Maison Kawasaki II

Kawasaki-shi,
Kanagawa

Real estate trust
beneficiary interests

1,925

2,350

R-022

Esty Maison Azabujuban

Minato-ku, Tokyo

Real estate trust
beneficiary interests

2,717

3,000

906

1,000

R-023

Esty Maison Itabashihoncho

Itabashi-ku, Tokyo

Real estate trust
beneficiary interests

R-024

Esty Maison Oizumigakuen

Nerima-ku, Tokyo

Real estate trust
beneficiary interests

770

858

R-025

Esty Maison
Higashishinagawa

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,297

2,390

R-026

Esty Maison
Itabashikuyakushomae

Itabashi-ku, Tokyo

Real estate trust
beneficiary interests

2,458

2,750

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,020

1,170

Bunkyo-ku, Tokyo

Real estate trust
beneficiary interests

681

782

R-027
R-028

25

Name ofreal estate, etc.

Esty Maison Musashikoyama(Note 5)

Esty Maison Sendagi(Note 6)26

Usagetype

Residence

Property
numberEstimatedvalue at theend of period(million yen)

R-029

Esty Maison
Yotsuyasakamachi(Note 7)

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

2,065

2,340

R-059

Esty Maison Toritsudaigaku

R-030

Esty Maison Hakatahigashi

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,255

2,560

R-060

R-031

Esty Maison Kamigofuku

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

778

825

R-061

(Note 1)

(Note 2)Type of ownership

Usage
type

Property
numberLocation

Name ofreal estate, etc.

(Note 1)

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

Book value
at the end of
period(million yen)

Estimatedvalue at theend of period(million yen)
(Note 3)Meguro-ku, Tokyo

Real estate trust
beneficiary interests

845

894

Esty Maison
Musashikoyama II

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,001

1,110

Esty Maison Nakano

Nakano-ku, Tokyo

Real estate trust
beneficiary interests

1,829

1,960

987

1,070

R-033

Prime Maison
Musashinonomori

Kodaira-shi,
Tokyo

Real estate trust
beneficiary interests

1,786

2,010

R-062

Esty Maison Shinnakano

Nakano-ku, Tokyo

Real estate trust
beneficiary interests

R-034

Prime Maison Higashisakura

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,438

1,620

R-063

Esty Maison Nakanofujimicho

Nakano-ku, Tokyo

Real estate trust
beneficiary interests

956

1,050

R-035

Prime Maison Kayabakoen

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

829

906

R-064

Esty Maison Tetsugakudo

Nakano-ku, Tokyo

Real estate trust
beneficiary interests

1,120

1,230

R-036

Esty Maison Sangenjaya II

Setagaya-ku,
TokyoReal estate trust
beneficiary interests

765

857

R-065

Esty Maison Koenji

Suginami-ku,
TokyoReal estate trust
beneficiary interests

1,132

1,230

2,405

2,630

R-037

Esty Maison Itabashi C6

Itabashi-ku,
TokyoReal estate trust
beneficiary interests

2,485

2,790

R-066

Esty Maison Oshiage

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

R-038

MAST Hakata(Note 8)

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,441

2,620

R-067

Esty Maison Akabane

Kita-ku, Tokyo

Real estate trust
beneficiary interests

3,155

3,490

R-039

Esty Maison Kinshicho

Sumida-ku,
TokyoReal estate trust
beneficiary interests

1,216

1,320

R-068

Esty Maison Oji

Kita-ku, Tokyo

Real estate trust
beneficiary interests

1,587

1,810

R-040

Esty Maison Musashikoganei

Koganei-shi,
Tokyo

Real estate trust
beneficiary interests

1,752

2,030

R-069

Prime Maison Waseda

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

1,522

1,770

Real estate trust
beneficiary interests

1,400

1,600

1,889

2,020

R-041

Prime Maison Gokiso

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,862

2,080

R-070

Prime Maison Hatchobori

Chuo-ku, Tokyo

R-042

Prime Maison Yuhigaoka

Osaka-shi, Osaka

Real estate trust
beneficiary interests

881

1,040

R-071

Prime Maison Jimbocho

Chiyoda-ku,
Tokyo

R-043

Prime Maison Kitatanabe

Osaka-shi, Osaka

Real estate trust
beneficiary interests

626

657

R-072

Prime Maison
Gotenyama East

Shinagawa-ku,
TokyoFukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

1,910

MAST LIFE Akihabara

Chiyoda-ku,
Tokyo

Taito-ku, Tokyo

Real estate trust
beneficiary interests

1,910

R-044
R-045

Prime Maison Momochihama
Esty Maison Akihabara

2,110
2,050

Residence

R-073
R-074

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

2,881

3,100

Real estate trust
beneficiary interests

543

595

Esty Maison Aoi

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

2,372

2,480

Real estate trust
beneficiary interests

2,585

2,510

R-046

Esty Maison Sasazuka

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

3,393

3,680

R-075

Esty Maison Yakuin

Fukuoka-shi,
Fukuoka

R-047

Prime Maison Ginza East

Chuo-ku, Tokyo

Real estate trust
beneficiary interests

6,082

6,830

R-076

Esty Maison Kinshicho II

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

7,996

9,260

R-048

Prime Maison Takami

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,076

1,130

R-077

Esty Maison Ojima

Koto-ku, Tokyo

Real estate trust
beneficiary interests

8,365

9,910

Real estate trust
beneficiary interests

858

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

2,179

2,160

4,570

4,880

R-049

Prime Maison Yadaminami

Nagoya-shi, Aichi

879

R-078

Prime Maison Fujimidai

R-050

Prime Maison Teriha

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

1,189

1,320

R-079

Esty Maison Tsurumai

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

R-051

Esty Maison
Higashishirakabe

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,631

1,680

R-080

Prime Maison Morishita

Koto-ku, Tokyo

Real estate trust
beneficiary interests

1,854

2,060

R-052

Esty Maison Sengoku

Bunkyo-ku,
TokyoReal estate trust
beneficiary interests

1,332

1,450

R-081

Prime Maison Shinagawa

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,904

2,120

Setagaya-ku,
TokyoReal estate trust
beneficiary interests

2,230

Real estate trust
beneficiary interests

3,064

3,090

Real estate trust
beneficiary interests

1,837

1,830

Real estate trust
beneficiary interests

1,209

1,150

Real estate trust
beneficiary interests

2,181

2,395

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

1,835

1,990

Real estate trust
beneficiary interests

4,278

5,030

Real estate trust
beneficiary interests

1,019

1,040

R-053

Esty Maison Daizawa

2,440

R-082

Prime Maison Odorikoen

Sapporo-shi,
Hokkaido

R-054

Esty Maison Togoshi

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,729

1,880

R-083

Prime Maison Minami 2-jo

Sapporo-shi,
Hokkaido

R-055

Esty Maison Nishitemma

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,628

1,710

R-084

Prime Maison
Kamokamogawa

Sapporo-shi,
Hokkaido

R-056

Esty Maison Shirokanedai

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,375

2,790

R-085

Prime Maison Central Park

Fukuoka-shi,
Fukuoka

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

1,618

Minato-ku, Tokyo

Real estate trust
beneficiary interests

1,513

R-057
R-058

27

Book value
at the end of
period(million yen)

Name ofreal estate, etc.

Esty Maison Higashishinjuku
Esty Maison Motoazabu

1,810
1,650

R-086

(Note 9)MAST LIFE Yahiro

R-087

Prime Maison Ebisu

Shibuya-ku,
Tokyo

R-088

Granmast Kanazawa
Nishiizumi

Kanazawa-shi,Ishikawa

28

Usagetype

Property
number(Note 1)

R-089

(Note 2)

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

Estimatedvalue at theend of period(million yen)

Usage
type

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

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

Real estate trust
beneficiary interests

780

813

Real estate trust
beneficiary interests

2,693
1,320

Book value
at the end of
period(million yen)

Estimatedvalue at theend of period(million yen)
(Note 3)O-001

Garden City Shinagawa
Gotenyama

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

70,273

89,100

3,033

O-002

Gotenyama SH Building

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

49,74561,700

1,450

O-003

Hommachi Minami Garden
City

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

42,67056,400O-004

Hommachi Garden City
(Office building portion)

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

36,60344,800O-005

HK Yodoyabashi Garden
Avenue(Note 12)

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

4,242

6,390

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

6,193

7,190

28,741

30,000-238,469

295,580

1 Real estate trust
beneficiary interests

16,85918,000

Yokohama-shi,
Kanagawa

R-091

MAST LIFE Hino

Hino-shi, Tokyo

Real estate trust
beneficiary interests

R-092

Prime Maison
Yokohama Nihon-odori

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

4,674

4,910

R-093

Kobe Women’s Student
Housing

Kobe-shi, Hyogo

Real estate trust
beneficiary interests

5,379

6,320

R-094

Prime Maison Shibuya

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

2,391

2,610

O-006

Hirokoji Garden Avenue

Nagoya-shi,
Aichi

2,934

3,280

O-007

Akasaka Garden City

Minato-ku,
Tokyo

Officebuilding

Prime Maison Hatsudai

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

R-096

Esty Maison Uemachidai

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

1,071

1,130

Subtotal

R-097

Esty Maison Kobe-sannomiya

Kobe-shi, Hyogo

Real estate trust
beneficiary interests

934

1,000

H-001

Hommachi Garden City
(Hotel portion)

Osaka-shi,
Osaka

R-098

Prime Maison
Shirokane-takanawa

Minato-ku,
TokyoReal estate trust
beneficiary interests

4,810

5,380

H-002

The Ritz-Carlton, Kyoto

Kyoto-shi, Kyoto

Real estate trust
beneficiary interests

22,19722,344R-099

Prime Maison
Ichigayayamabushicho

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

4,129

4,270

Subtotal--

39,05740,344

R-100

Esty Maison Morishita

Sumida-ku,
TokyoReal estate trust
beneficiary interests

636

689

Total

-

-

524,375

610,153

R-101

Prime Maison
Shirokanedai Tower

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

7,961

10,000R-102

Prime Maison Otsuka

Toshima-ku,
TokyoReal estate trust
beneficiary interests

3,701

4,430

R-103

Prime Maison Asakusabashi

Taito-ku, Tokyo

Real estate trust
beneficiary interests

1,683

2,010

R-104

Prime Maison Daikanyama

Meguro-ku,
TokyoReal estate trust
beneficiary interests

2,527

3,090

R-105

Prime Maison
Gotenyama West

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

3,416

4,230

Koto-ku, Tokyo

Real estate trust
beneficiary interests

5,912

7,070

R-095

R-106

Esty Maison Toyosu Residence(Note 10)

R-107

Esty Maison Kokura

Kitakyushu-shi,
Fukuoka

Real estate trust
beneficiary interests

1,074

1,050

R-108

MAST Ijiri

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

396

419

R-109

Prime Maison
Mitatsunamachi

Minato-ku,
TokyoReal estate trust
beneficiary interests

2,053

2,260

R-110

Prime Maison Hongo

Bunkyo-ku,
TokyoReal estate trust
beneficiary interests

2,614

2,750

R-111

Prime Maison Kuramae

Taito-ku,
Tokyo

Real estate trust
beneficiary interests

2,201

2,340

R-112

Esty Maison Yokohamaaobadai(Note 11)

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

3,030

3,240

R-113

Esty Maison Shizuoka Takajo

Shizuoka-shi,
Shizuoka

Real estate trust
beneficiary interests

674

662

R-114

GRAND MAST Hirose-doriSendai-shi,
MiyagiReal estate trust
beneficiary interests

880

889

R-115

MAST STYLEHIGASHIBETSUIN

Nagoya-shi,
Aichi

Real estate trust
beneficiary interests

2,282

2,200

R-116

Granmast Kayaba

Nagoya-shi,
Aichi

Real estate trust
beneficiary interests

939

946

R-117

MAST STYLESHIRAKABEMINAMI

Nagoya-shi,
Aichi

Real estate trust
beneficiary interests

689

682

246,849274,229

Subtotal

29

Granmast Unomori

Location

Esty Maison
Kohoku Tsunashima

R-090

Residence

Name ofreal estate, etc.

-

-

Hotel

-

(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)

“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%)).

30

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

Usage
type

Property
numberName ofreal estate, etc.

12th fiscal period
13th fiscal period
From: May 1, 2020
From: Nov. 1, 2020
To: Oct. 31, 2020
To: Apr. 30, 2021
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
percentage
Total
Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof 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]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)(Note 3)

R-001
R-002
R-003
R-004
R-005
R-006
R-007
R-008
R-010
R-011
R-012
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

31

Esty Maison Ginza
Esty Maison
Azabunagasaka
Esty Maison
Ebisu II
Esty Maison Ebisu
Esty Maison
Kanda
Esty Maison
Kitashinjuku
Esty Maison
Asakusakomagata
Esty Maison
Kawasaki
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

Usage
type

Property
numberName ofreal estate, etc.

12th fiscal period
13th fiscal period
From: May 1, 2020
From: Nov. 1, 2020
To: Oct. 31, 2020
To: Apr. 30, 2021
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
percentage
Total
Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof 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]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)(Note 3)R-030

(Note 3)

1

96.9

176

1.2

1

97.9

174

1.2

1

95.1

50

0.3

1

85.1

51

0.3

1

95.7

59

0.4

1

96.7

57

0.4

1

100.0

22

0.2

1

96.1

23

0.2

1

95.5

44

0.3

1

92.4

45

0.3

1

92.3

45

0.3

1

83.4

41

0.3

1

95.4

67

0.5

1

97.5

64

0.4

1

96.0

80

0.5

1

96.6

78

0.5

1

96.8

53

0.4

1

96.9

53

0.4

1

100.0

31

0.2

1

91.8

32

0.2

1

97.3

49

0.3

1

97.7

49

0.3

1

97.0

87

0.6

1

96.5

88

0.6

1

93.0

30

0.2

1

98.2

29

0.2

1

98.4

33

0.2

1

97.0

33

0.2

1

91.7

94

0.6

1

95.7

94

0.6

1

97.1

81

0.5

1

97.1

78

0.5

1

93.3

65

0.4

1

94.2

64

0.4

R-047

1

98.1

34

0.2

1

100.0

34

0.2

R-048

1

99.0

38

0.3

1

100.0

39

0.3

R-049

1

96.7

64

0.4

1

92.2

63

0.4

R-050

1

98.7

65

0.4

1

96.2

66

0.4

R-051

1

98.4

30

0.2

1

93.8

34

0.2

R-052

1

98.3

26

0.2

1

100.0

26

0.2

R-053

1

95.8

73

0.5

1

97.2

69

0.5

R-054

1

95.1

77

0.5

1

94.4

77

0.5

1

94.6

30

0.2

1

86.4

29

0.2

1

100.0

22

0.2

1

92.3

22

0.2

1

96.4

60

0.4

1

91.9

60

0.4

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-055
R-056
R-057

Esty Maison
Hakatahigashi
Esty Maison
Kamigofuku
Esty Maison
Sangenjaya(Note 5)
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(Note 3)

1

97.7

85

0.6

1

96.9

86

0.6

1

97.0

29

0.2

1

97.0

29

0.2

1

94.5

24

0.2

－

－

15

0.1

1

95.2

64

0.4

1

100.0

65

0.4

1

94.5

53

0.4

1

94.6

52

0.3

1

100.0

29

0.2

1

100.0

29

0.2

1

100.0

24

0.2

1

92.0

24

0.2

1

91.9

76

0.5

1

93.5

75

0.5

1

100.0

93

0.6

1

100.0

94

0.6

1

95.8

36

0.2

1

95.8

34

0.2

1

100.0

55

0.4

1

99.0

56

0.4

1

92.7

61

0.4

1

97.7

64

0.4

1

92.3

29

0.2

1

96.4

29

0.2

1

100.0

23

0.2

1

92.6

22

0.2

1

100.0

69

0.5

1

100.0

69

0.5

1

98.7

58

0.4

1

98.7

56

0.4

1

98.0

91

0.6

1

93.4

90

0.6

1

97.7

177

1.2

1

95.9

172

1.2

1

100.0

34

0.2

1

85.8

33

0.2

1

96.2

26

0.2

1

96.2

28

0.2

1

100.0

51

0.4

1

100.0

51

0.3

1

100.0

46

0.3

1

100.0

46

0.3

1

94.3

37

0.3

1

97.0

37

0.3

1

98.8

63

0.4

1

97.8

61

0.4

1

97.9

50

0.3

1

95.5

48

0.3

1

100.0

50

0.3

1

95.8

53

0.4

1

98.8

70

0.5

1

95.0

71

0.5

1

97.9

44

0.3

1

94.8

46

0.3

R-058

Esty Maison
Motoazabu

1

100.0

41

0.3

1

92.6

41

0.3

R-059

Esty Maison
Toritsudaigaku

1

90.1

23

0.2

1

100.0

23

0.2

32

Usagetype

Property
numberName ofreal estate, etc.

12th fiscal period
13th fiscal period
From: May 1, 2020
From: Nov. 1, 2020
To: Oct. 31, 2020
To: Apr. 30, 2021
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
percentage
Total
Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof 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]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)(Note 3)

R-060
R-061
R-062
R-063
R-064
R-065
R-066
R-067
R-068
R-069
R-070
R-071
R-072
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

33

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

Usage
type

12th fiscal period
13th fiscal period
From: May 1, 2020
From: Nov. 1, 2020
To: Oct. 31, 2020
To: Apr. 30, 2021
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
percentage
Total
Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof 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]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)

Property
numberName ofreal estate, etc.

1

100.0

78

0.5

1

100.0

78

0.5

1

98.6

48

0.3

1

98.4

48

0.3

1

99.1

138

0.9

1

94.4

140

0.9

1

100.0

222

1.5

1

100.0

222

1.5

1

88.6

59

0.4

1

95.3

63

0.4

1

95.1

79

0.5

1

96.0

78

0.5

1

97.7

34

0.2

1

91.1

33

0.2

1

98.4

29

0.2

1

100.0

31

0.2

1

95.7

124

0.8

1

93.9

120

0.8

1

93.2

99

0.7

1

92.3

101

0.7

1

100.0

19

0.1

1

95.1

20

0.1

1

93.5

232

1.6

1

94.4

236

1.6

1

94.9

111

0.8

1

91.9

115

0.8

1

93.8

48

0.3

1

93.8

49

0.3

1

78.4

62

0.4

1

95.0

67

0.4

1

88.2

118

0.8

1

91.3

108

0.7

1

98.0

470

3.2

1

97.0

481

3.2

1

88.8

31

0.2

1

94.3

32

0.2

1

100.0

13

0.1

1

100.0

13

0.1

1

89.7

49

0.3

1

80.1

51

0.3

1

90.0

67

0.5

1

96.1

64

0.4

1

93.1

58

0.4

1

95.7

62

0.4

1

100.0

86

0.6

1

100.0

86

0.6

1

100.0

23

0.2

1

100.0

23

0.2

1

100.0

29

0.2

1

100.0

29

0.2

－

－

－

－

1

100.0

11

0.1

－

－

－

－

1

100.0

5

0.0

－

－

－

－

1

100.0

3

0.0

13

96.7

7,716

52.0

13

96.5

7,772

52.1

(Note 3)(Note 3)

1

100.0

30

0.2

1

100.0

29

0.2

R-090

Esty Maison
Kohoku

1

100.0

51

0.3

1

98.9

53

0.4

R-091

MAST LIFE Hino

1

98.0

28

0.2

1

91.8

28

0.2

R-092

1

97.8

30

0.2

1

95.1

28

0.2

R-093

1

98.5

35

0.2

1

97.0

34

0.2

R-094

1

98.5

33

0.2

1

94.4

34

0.2

R-095

1

95.5

71

0.5

1

96.4

71

0.5

R-096

1

98.8

96

0.7

1

94.6

97

0.7

R-097

1

98.9

48

0.3

1

96.6

49

0.3

1

93.9

42

0.3

1

89.7

43

0.3

1

94.3

36

0.2

1

96.2

38

0.3

1

98.6

52

0.4

1

91.4

52

0.4

1

88.8

81

0.5

1

91.1

104

0.7

1

100.0

15

0.1

1

100.0

15

0.1

1

86.6

67

0.5

1

83.1

62

0.4

1

97.3

75

0.5

1

97.3

75

0.5

1

98.1

221

1.5

1

97.8

225

1.5

1

97.0

244

1.7

1

95.1

247

1.7

1

92.3

67

0.5

1

90.8

66

0.4

1

100.0

155

1.1

1

100.0

155

1.0

1

98.8

55

0.4

1

96.6

56

0.4

R-109

1

97.4

59

0.4

1

90.2

56

0.4

R-110

1

87.5

110

0.7

1

94.3

118

0.8

R-111

1

96.5

72

0.5

1

98.4

73

0.5

R-112

1

90.8

46

0.3

1

98.1

46

0.3

R-113

1

100.0

88

0.6

1

99.4

88

0.6

R-114

1

100.0

56

0.4

1

100.0

56

0.4

R-115

1

95.0

113

0.8

1

99.0

111

0.7

R-116

1

100.0

39

0.3

1

100.0

39

0.3

1

100.0

27

0.2

1

100.0

27

0.2

R-098
R-099
R-100
R-101
R-102
R-103
Residence R-104
R-105
R-106
R-107
R-108

R-117
Subtotal

Prime Maison
Yokohama NihonKobe Women’sStudent Housing
Prime Maison
ShibuyaPrime Maison
Hatsudai
Esty Maison
Uemachidai
Esty Maison Kobesannomiya
Prime Maison
ShirokanePrime Maison
Ichigayayamabush
Esty Maison
Morishita
Prime Maison
Shirokanedai
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
YokohamaEsty Maison
Shizuoka Takajo
GRAND MAST
Hirose-dori
MAST STYLEHIGASHIBETSU
Granmast
KayabaMAST STYLESHIRAKABE(Note 3)34

Usagetype

Property
numberName ofreal estate, etc.

12th fiscal period
13h fiscal period
From: May 1, 2020
From: Nov. 1, 2020
To: Oct. 31, 2020
To: Apr. 30, 2021
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
percentage
Total
Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof 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]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)(Note 3)

O-001
O-002
O-003
Officebuilding

O-004

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

1,906

12.9

1

100.0

1,947

13.0

1

100.0

1,088

7.3

1

100.0

1,088

7.3

1

100.0

1,288

8.7

1

99.2

1,285

8.6

1

100.0

903

6.1

1

100.0

903

6.1

139

0.9

1

100.0

162

1.1

1

100.0

215

1.5

1

100.0

208

1.4

1

100.0

681

4.6

1

95.9

677

4.5

3

100.0

6,223

42.0

4

99.4

6,274

42.0

1

100.0

410

2.8

1

100.0

402

2.7

1

100.0

475

3.2

1

100.0

475

3.2

Subtotal

2

100.0

886

6.0

2

100.0

878

5.9

Total

17

97.7

14,826

100.0

18

97.3

14,925

100.0

O-007
Subtotal
H-001(Note 2)

100.0

100.0

O-006

(Note 1)

1

1

O-005

Hotel

(Note 3)

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 17, 16, 8, 7 and 18, respectively as of the end of the 12th fiscal period (from May. 1, 2020 to Oct. 31, 2020)
and 17, 15, 8, 7 and 17 respectively as of the end of the 13th fiscal period (from Nov. 1, 2020 to Apr. 30, 2021).

“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 indicated(Note 3)(Note 4)(Note 5)35

in 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

4.

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

5.

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

6.

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

Contract amount, etc.
Fair value(thousand yen)(Note 1)(thousand yen)Amount(Note 2)due after 1 year
33,380,000

19,150,000(173,239)

123,391,000

106,391,000－(Note 3)

156,771,000

125,541,000(173,239)(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.

9.

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.

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 diposed “Esty Maison Sangenjaya” on February 26, 2021. 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 13th fiscal period (from Nov. 1, 2020 to Apr. 31, 2021).

36Capital expenditures for property

Condition of expenses and debts

1.

1.

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.
Name of real estate, etc.
(location)

Esty Maison Ginza(Ginza, Chuo-ku, Tokyo)
Prime Maison Gokiso(Ayuchitori, Showa-ku, Nagoya-shi,
Aichi)
Esty Maison Itabashihoncho(Yamato-cho, Itabashi-ku, Tokyo)
Esty Maison Minamihorie(Minamihorie, Nishi-ku, Osaka-shi,
Osaka)(Note)

PurposeLarge-scale repairs
Large-scale repairs
Large-scale repairs
Large-scale repairs

Scheduled period
From: December 2021
To: April 2022
From: May 2021
To: October 2021
From: November 2021
To: April 2022
From: November 2021
To: April 2022

Scheduled amount (million yen)(Note)
Payment for
Total
the fiscal
Amountamount period under already paid
review
119

―

―

110

―

―

99

―

―

84

―

―

Details of Expenses Pertaining to Management, etc.

Item

(Unit: thousand yen)

12th fiscal period
From: May. 1, 2020
To: Oct. 31, 2020

13th fiscal period
From: Nov. 1, 2020
To: Apr. 30, 2021

Asset management fee

984,709

1,029,670

Asset custody fee

10,367

10,368Administrative service fees

48,244

48,207

Directors’ compensations

3,600

3,600

250,292

268,104

1,297,213

1,359,951

Other expenses
Total(Note) In addition to the amounts shown above, the asset management fees contain 2,895 thousand yen as management fee for property
disposition, which was recorded as other disposition-related expenses, for the 13th fiscal period.

“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 654 million
yen and, together with 302 million yen of repair expenses charged to expenses in the fiscal period under review,
work amounting to 956 million yen was implemented.

Name of real estate, etc.
Purpose(location)
Prime Maison Fujimidai
Large-scale repair(Fujimidai, Chikusa-ku, Nagoya-shi, Aichi)
Prime Maison Takami
Large-scale repair(Takami, Chikusa-ku, Nagoya-shi, Aichi)
Prime Maison Kitatanabe
Large-scale repair(Kitatanabe, Higashisumiyoshi-ku, Osaka-shi, Osaka)
Other capital expenditures
Total

3.

PeriodFrom: June 2020
To: November 2020
From: December 2020
To: April 2021
From: December 2020
To: March 2021

Payment amount(million yen)
148
54
52
399
654

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.

37

38

Condition of investment transactions
1.

the results of the investigations.
The transactions subject to investigations in the fiscal period under review were four interest rate swap
transactions. For the transactions, investigations into the name of the counterparty to the transaction, the type

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

Acquisition date

Disposition

Acquisition
price(million yen)

Disposition date

(Note 1)

MAST STYLE HIGASHIBETSUIN
Granmast Kayaba
MAST STYLESHIRAKABEMINAMI
Esty Maison Sangenjyaya
Total

April 1, 2021
April 1, 2021

of 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.

2,190

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

―

900

―

―

―

―

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

―

―

―

April 1, 2021

660

―

―

―

―

―

―

February 26, 2021

965

800

130

―

3,750

―

965

800

130

Total amount
Sekisui House Real Estate Chubu, Ltd.

Categoryrounded down to the nearest million yen. The same shall apply hereinafter.

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

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.

Acquisition
or
Disposition

Management fee

Name of real estate, etc.

MAST STYLEHIGASHIBETSUIN

Acquisition Granmast Kayaba

MAST STYLESHIRAKABEMINAMI

Disposition Esty Maison Sangenjyaya(Note)

Transaction
date(Note 2)Type of asset

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

April 1,
2021

Real estate
trust beneficiaryinterests

2,190

April 1,
2021

Real estate
trust beneficiaryinterests

900

April 1,
2021

Real estate
trust beneficiaryinterests

Real estate
February 26,
trust beneficiary
2021
interests

660

965

2,200

Appraiser

965 million yen

3,750 million yen[100.0%]－million yen[－%]

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.

424,072

42.0

Sekisui House Real Estate Chubu, Ltd.

59,785

5.9

Sekisui House GM Partners, Ltd.

52,818

5.2

Sekisui House Real Estate Kyushu, Ltd.

17,743

1.8

Sekisui House, Ltd.

14,300

1.4

Sekisui House Real Estate Kansai, Ltd.

6,299

0.6

Sekisui House Real Estate Tohoku, Ltd.

1,050

0.1

294

0.0

SH Hotel Systems Ltd.

(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 andDaiwa Real
December 1,
Estate Appraisal
2020
Co., Ltd.
Daiwa Real
December 1,
Estate Appraisal
2020
Co., Ltd.

665

Daiwa Real
December 1,
Estate Appraisal
2020
Co., Ltd.

Tanizawa Sogo
Appraisal Co.,
Ltd.

Investment 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.

October 31,
2020

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.”

1,008,806

Date ofappraisal

926

872

Amount of sale, etc.

3,750 million yen(2) Amount of Commission Fee, etc.

owned properties (excluding consumption tax, local consumption tax and miscellaneous expenses including transaction fees),

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

Amount of purchase, etc.

Breakdown of status of transactions with interested persons, etc.

(Note 1) “Acquisition price” and “Disposition price” indicate the transaction prices shown in the sales and purchace agreements for respective

2.

Amount of purchase and sale, etc.

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

5.

Sekisui House Real Estate Tokyo, Ltd.

274,317 thousand yen

Sekisui House, Ltd.

148,144 thousand yen

Sekisui House Real Estate Chubu, Ltd.

65,876 thousand yen

Sekisui House GM Partners, Ltd.

29,046 thousand yen

Sekisui House Real Estate Kyushu, Ltd.

25,103 thousand yen

Sekisui House Real Estate Kansai, Ltd.

5,420 thousand yen

Sekisui House Real Estate Tohoku, Ltd.

1,200 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.

Corporations” published by The Japanese Institute of Certified Public Accountants, and SHR has been notified of39

40

Other infomation

Financial Section (Audited)

1. Notice(1) General Meeting of Unitholders

During the fiscal period under review, SHR held no General Meeting of Unitholders.

(2) Meeting of the Board of Directors of the Investment Corporation
In the fiscal period under review, there is no information regarding the matters, etc. provided in Items 2, 3, 5, 6
and 8 of Article 109, Paragraph 2 of the Investment Trusts Act approved at a meeting of the board of directors of
SHR, as well as other matters deemed important.

Contents
Financial Statements

41

Balance Sheet

43

Statement of Income and Retained Earnings

45

Statement of Changes in Net Assets

46

Statement of Cash Distributions

48

Statement of Cash Flows49

Notes to Financial Statements

50

Supplementary Schedules

65

Independent Auditor’s Report75

42

(Thousands of yen)

12th Fiscal Period(As of October 31, 2020)

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

12th Fiscal Period(As of October 31, 2020)

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

43

13th Fiscal Period(As of April 30, 2021)

9,424,900
19,008,771
184,706
226,584449(1,805)28,843,605

10,572,674
19,136,112
172,760
240,044624(1,914)30,120,301

174,776,368(15,046,546)
159,729,822
1,571,922(215,642)
1,356,279
2,236,271(233,151)
2,003,120
153
(96)
57
439,351(77,651)
361,700
357,199,586
61,142520,711,708

176,427,935(17,338,960)
159,088,974
1,598,252(247,163)
1,351,088
2,249,222(284,113)
1,965,109
153
(134)
19
545,942(118,298)
427,644
359,142,655－
521,975,492

2,424,896
4,010
2,428,906

2,399,470
3,941
2,403,411

790,700
544,128
467,324
1,802,153
524,942,768

790,715596,753458,272
1,845,740
526,224,644

146,200
134,941
281,142554,067,516

131,998
92,328224,326
556,569,273

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
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 5)
Total liabilities and net assets

13th Fiscal Period(As of April 30, 2021)

1,030,204－
29,710,000
1,129,034
186,325585
257,594
707,223
29,558109,267
33,159,794

706,3423,000,000
35,590,000
1,184,669
192,116583
229,907686,52250,16988,56941,728,880

32,500,000
187,732,000
14,127,690
228,253
60,558234,648,502
267,808,297

32,500,000
181,852,000
14,118,413
123,070
26,510228,619,994
270,348,874

149,210,081

149,210,081

128,598,415

128,598,415

746,169
969,369
1,715,539
6,992,995
137,306,950
286,517,031

649,425
832,707
1,482,132
7,103,009
137,183,557
286,393,638(257,812)(257,812)
286,259,219
554,067,516(173,239)(173,239)
286,220,398
556,569,273

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

44

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

12th Fiscal Period

Operating revenue
Rent revenue – real estate (Note 6)
Other lease business revenue (Note 6)
Gain on sale of real estate properties (Note 6)
Total operating revenue
Operating expenses
Expenses related to rent business (Note 6)
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
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.

13th Fiscal Period(From May 1, 2020

(From November 1, 2020

to October 31, 2020)

to April 30, 2021)

14,410,200
416,488
14,826,689

14,537,588
387,419
130,080
15,055,088

5,660,925
984,709
10,367
48,2443,600
146250,145
6,958,139
7,868,549

5,706,053
1,029,670
10,36848,2073,600
284
267,820
7,066,004
7,989,083

130
898
9,375
10,403

143
915
－
1,059

662,166
62,894
102,079
42,613
11,642
3,956
885,352
6,993,600
6,993,600
605
605
6,992,995
6,992,995

640,664
72,701
113,927
42,613
14,2022,419
886,528
7,103,614
7,103,614
605
605
7,103,009
7,103,009－(3) Statement of Changes in Net Assets
12th Fiscal Period (From May 1, 2020 to October 31, 2020)
Unitholders’ equity
Surplus
Unitholders’capitalBalance at beginning of period

Voluntary reserve
CapitalsurplusReserve for
reduction entry

Reserve fortemporarydifference
adjustments

775,495

1,089,341

149,210,081 128,598,415

Unappropriatedretainedearnings

Total
voluntary
reserve
1,864,837

6,991,331(29,325)

29,325(119,972)

119,972

Changes of items during period
Reversal of reserve for reduction
entry
Reversal of reserve for temporary
difference adjustments(29,325)(119,972)

Distribution from surplus(7,140,628)

Net income

6,992,995

Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period (Note 7)－(29,325)(119,972)(149,297)

1,664

149,210,081 128,598,415

746,169

969,369

1,715,539

6,992,995－(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’equity137,454,583

286,664,665

－

－

－

－

－

－

Distribution from surplus(7,140,628)(7,140,628)(7,140,628)

Net income

6,992,995

6,992,995

6,992,995

Balance at beginning of period(340,937)(340,937)

286,323,727

Changes of items during period
Reversal 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 7)

45(Thousands of yen)

83,125

83,125

83,125(147,633)(147,633)

83,125

83,125(64,507)

137,306,950

286,517,031(257,812)(257,812)

286,259,219

46

13th Fiscal Period (From November 1, 2020 to April 30, 2021)(Thousands of yen)

Item

Unitholders’ equity
Surplus
Unitholders’capitalBalance at beginning of period

Voluntary reserve
CapitalsurplusReserve for
reduction entry

Reserve fortemporarydifference
adjustments

746,169

969,369

149,210,081 128,598,415

Unappropriatedretainedearnings

Total
voluntary
reserve
1,715,539

6,992,995(96,744)

96,744

Changes of items during period
Reversal of reserve for reduction
entry
Reversal of reserve for temporary
difference adjustments(96,744)(136,661)(136,661)

136,661

Distribution from surplus(7,226,402)

Net income

7,103,009

Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period (Note 7)－(96,744)(136,661)(233,406)

110,013

149,210,081 128,598,415

649,425

832,707

1,482,132

7,103,009－(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’equity137,306,950

286,517,031

－

－

－

－

－

－

Distribution from surplus(7,226,402)(7,226,402)(7,226,402)

Net income

7,103,009

7,103,009

7,103,009

Balance at beginning of period(257,812)(257,812)

286,259,219

Changes of items during period
Reversal 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 7)

84,572

84,572

84,572(123,393)(123,393)

84,572

84,572(38,820)

137,183,557

286,393,638(173,239)(173,239)

286,220,398

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

( 4) Statement of Cash Distributions

Ⅰ. Unappropriated retained earnings
Ⅱ. Reversal of voluntary reserve

Reversal of reserve for reduction entry
Reversal of reserve for temporary difference
adjustments (Note 8)
Ⅲ. Cash distributions[Cash distributions per unit]
Ⅳ. Voluntary reserve
Provision of reserve for reduction entry(Note 8)
Ⅴ. Retained earnings carried forward

Method for calculating cash distributions

12th Fiscal Period

13th Fiscal Period(From May 1, 2020

(From November 1, 2020

to October 31, 2020)

to April 30, 2021)

6,992,995,750yen

7,103,009,154yen

96,744,491yen

26,645,983yen

136,661,969yen

157,569,331yen

7,226,402,210yen

7,183,515,550yen－yen

103,708,918yen[1,685yen][1,675yen]

－yen

－yen

The basic policy is to distributein excess of an amountequivalent to 90% of theamount of earnings available
for distribution of SHR
provided in Article 67-15,
Paragraph 1 of the Act on
Special Measures Concerning
Taxation as set forth in Article
46, Paragraph 1, Item 2 of the
Articles of Incorporation of
SHR.

The basic policy is to distribute

Based on such policy, SHR
decided to distribute
7,226,402,210 yen, which is
obtained by adding a reversalof the reserve for temporary
difference adjustments(136,661,969 yen) and areversal of the reserve for
reduction entry (96,744,491
yen) to unappropriatedretained earnings, as
distribution of earnings.

Based on such policy, SHR

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

in excess of an amountequivalent to 90% of theamount of earnings available
for distribution of SHR
provided in Article 67-15,

Paragraph 1 of the Act on
Special Measures Concerning

Taxation as set forth in Article
46, Paragraph 1, Item 2 of the
Articles of Incorporation ofSHR.

decided to distribute

7,183,515,550 yen, which is
obtained by adding a reversalof the reserve for temporary
difference adjustments(157,569,331 yen) and areversal of the reserve for
reduction entry (26,645,983
yen) to unappropriatedretained earnings andreserving a reserve for
reduction entry (103,708,918
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.

47

48

( 6)

(5) Statement of Cash Flows
12th 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 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
Purchase of intangible assets 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
Dividends paid
Net cash provided by (used in) financing activities
N e t i n c r e a s e ( d e c r e a s e ) i n cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 9)
The accompanying notes are an integral part of these financial statements.

49(From May 1, 2020
to October 31, 2020)(Thousands of yen)

13th Fiscal Period(From November 1, 2020
to April 30, 2021)

6,993,600
2,445,568
11,642
42,613(130)725,060
9,195(7,341)(83)
111,086(38,520)(216,816)
276,737－
520
10,353,133
130(799,257)(606)
9,553,399

7,103,614
2,468,892
14,202
42,613(143)
713,366
11,945(13,430)(52,624)(225,576)
54,916(27,686)(20,701)
800,488
2,496
10,872,372
143(764,914)(607)
10,106,994(533,896)(228)
232,502(179,046)
14,949(465,719)(4,605,816)(400)
268,386(277,664)
9,037(4,606,458)－(13,100,000)
20,200,000(15,100,000)
7,947,587(7,142,527)(7,194,940)
1,892,739
26,540,932
28,433,672

3,000,000－
20,950,000(20,950,000)－(7,225,421)(4,225,421)
1,275,114
28,433,672
29,708,786

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).

50

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 14,444
thousand yen for the 13th fiscal period, and there were no property taxes
capitalized for the 12th 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.
1ሻ Cash and deposits in trust2ሻ 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
3ሻ 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.

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

13th Fiscal Period

12th Fiscal Period(As of October 31, 2020)(As of April 30, 2021)

50,00051

50,00052

*2. Commitment line agreement

SHR has entered into a commitment line agreement with three financial institutions in order to secure flexible
and stable financing.

6. Notes to Statement of Income and Retained Earnings*1. Breakdown of property-related operating revenue and expenses(Thousands of yen)

12th Fiscal Period(Thousands of yen)

12th Fiscal Period

13th Fiscal Period(As of October 31, 2020)

Total amount of commitment line
Balance executed as loans
Unused line of credit(As of April 30, 2021)

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)

12th Fiscal Period(As of October 31, 2020)

13th Fiscal Period(As of April 30, 2021)

Gain on negative goodwill (*)
Initial amount

1,556,827

1,556,827

Balance at beginning of period

1,089,341

969,369

Reserve amount during period－－

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

119,972

136,661

969,369

832,707

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.

(From May 1, 2020
to October 31, 2020)

A. Property-related operating revenue
Rent revenue – real estate
Rental income
Other(From November 1, 2020
to April 30, 2021)

14,071,985
338,215

14,410,200

14,195,706
341,881

186,652
229,835

416,488

146,360
241,058

Other lease business revenue
Utilities revenue
Other

Total property-related operating revenue
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 business13th Fiscal Period

14,826,689

561,647435,613
44,233
277,654
1,027,230
17,006
291,016
2,444,851
561,672

5,660,925

14,537,588

387,419
14,925,007

559,551449,580
41,941
249,684
1,032,034
17,220302,077
2,468,170
585,792

5,706,053

Total property-related operating expenses

5,660,925

5,706,053

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

9,165,763

9,218,954*2. Breakdown of gain on sale of real estate properties

12th Fiscal Period (From May 1, 2020 to October 31, 2020)
Not applicable.
13th Fiscal Period (From November 1, 2020 to April 30, 2021)(Thousands of yen)

Esty Maison Sangenjaya
Proceeds from sale of real estate property

965,000

Cost of real estate property

800,488

Other sales expenses

34,430Gain on sale of real estate property

130,080

7. Notes to Statement of Changes in Net Assets*1. Total number of authorized investment units and total number of investment units issued
12th Fiscal Period

53

13th Fiscal Period(From May 1, 2020
to October 31, 2020)(From November 1, 2020
to April 30, 2021)

Total number of authorized investment units

20,000,000units

20,000,000units

Total number of investment units issued

4,288,666units

4,288,666units54

8. Notes to Statement of Cash Distributions
Reserve for temporary difference adjustments
12th Fiscal Period(From May 1, 2020 to October 31, 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 136,661,969 yen for the 12th fiscal
period.

11. Financial Instruments
13th Fiscal Period(From November 1, 2020 to April 30, 2021)

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 157,569,331 yen for the 13th 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)

12th Fiscal Period(From May 1, 2020
to October 31, 2020)

13th Fiscal Period(From November 1, 2020
to April 30, 2021)

Cash and deposits

9,424,900

10,572,674

Cash and deposits in trust

19,008,771

19,136,112

Cash and cash equivalents

28,433,672

29,708,786

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

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

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.

10. Lease Transactions
Operating lease transactions as lessee
Future minimum lease payments(Thousands of yen)

12th Fiscal Period

13th Fiscal Period

Due within 1 year

412,524

418,128

Due after 1 year

19,923,341

19,985,268

20,335,865

20,403,396(As of October 31, 2020)

Total(As of April 30, 2021)

2. Matters concerning fair value of financial instruments
The following is the carrying amount and fair value of financial instruments as of October 31, 2020 and of
April 30, 2021, 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)).

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

12th Fiscal Period

13th Fiscal Period

Due within 1 year

11,959,455

11,422,799

Due after 1 year

38,228,936

35,137,850

50,188,391

46,560,650(As of October 31, 2020)

Total

55

(As of April 30, 2021)

56

(4) Current portion of investment corporation bonds (6) Investment corporation bonds

12th Fiscal Period (As of October 31, 2020)
Book value
recorded on thebalance sheet(Thousands of yen)

Fair value

Difference(1) Cash and deposits

9,424,900

9,424,900－(2) Cash and deposits in trust

19,008,771

19,008,771－

28,433,672

28,433,672－(3) Short-term loans payable

－

－

－

(4) Current portion of investment corporation
bonds

－

－

－

(5) Current portion of long-term loans payable

29,710,000

29,712,514

2,514(6) Investment corporation bonds

32,500,000

32,482,848(17,151)(7) Long-term loans payable

187,732,000

189,983,406

2,251,406

249,942,000

252,178,769

2,236,769(257,812)(257,812)－(257,812)(257,812)－

Total assets

Total liabilities(8) Derivative transactions (*)
Total derivative transactions (*)

The fair value of investment corporation bonds is based on the quoted market price.
Of 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 themethod 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”.

(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.

(Thousands of yen)(*) Amounts arising from derivative transactions are shown on a net basis with any amounts inside square parentheses ( )indicating a net liability position.

Item

Book value
recorded on thebalance sheet

Fair value

Difference

10,572,674

10,572,674－(2) Cash and deposits in trust

19,136,112

19,136,112－

29,708,786

29,708,786－

3,000,000

3,000,000

－

－

－

－

(5) Current portion of long-term loans payable

35,590,000

35,666,077

76,077(6) Investment corporation bonds

32,500,000

32,505,523

5,523(7) Long-term loans payable

181,852,000

183,710,480

1,858,480

252,942,000

254,882,081

1,940,081(173,239)(173,239)(173,239)(173,239)(3) Short-term loans payable(4) Current portion of investment corporation
bonds

Total liabilities(8) Derivative transactions (*)
Total derivative transactions (*)

14,127,690

14,118,413(Thousands of yen)

(1) Cash and deposits
Total assets(As of April 30, 2021)

Tenant leasehold and security deposits in trust

13th Fiscal Period (As of April 30, 2021)

13th Fiscal Period

12th Fiscal Period(As of October 31, 2020)(Note 3) Redemption schedule of monetary claims after the closing date

12th Fiscal Period (As of October 31, 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

9,424,900

－

－

－

－

－

Cash and deposits in trust

19,008,771

－

－

－

－

－

Total

28,433,672

－

－

－

－

－

13th Fiscal Period (As of April 30, 2021)(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

10,572,674

－

－

－

－

－

－

Cash and deposits in trust

19,136,112

－

－

－

－

－

－

Total

29,708,786

－

－

－

－

－

(*) Amounts arising from derivative transactions are shown on a net basis with any amounts inside square parentheses ( )57indicating a net liability position.

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

(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.

12th Fiscal Period (As of October 31, 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

Short-term loans payable

－

－

－

－

－

－

Investment corporation
bonds

－

3,000,000－

10,000,000

9,000,000

10,500,000

Long-term loans payable

29,710,000

39,230,000

31,310,000

25,735,000

26,833,000

64,624,000

58

13th Fiscal Period (As of April 30, 2021

(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

Short-term loans payable

3,000,000

－

－

－

－

－

Investment corporation
bonds

－

3,000,000

3,000,000

12,000,000

4,000,000

10,500,000

Long-term loans payable

35,590,000

25,500,000

36,050,000

26,695,000

32,543,000

61,064,000

12. Securities
12th Fiscal Period (From May 1, 2020 to October 31, 2020)

Not applicable.
13th Fiscal Period (From November 1, 2020 to April 30, 2021)
Not applicable.

13th Fiscal Period (As of April 30, 2021)
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 yearFair value

Calculation
method offair value

Long-term
loans
payable33,380,000

19,150,000(173,239)*1

Long-term
loans
payable123,391,000

106,391,000*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 (please

13. Derivative Transactions

refer to “ 11.

1. Derivatives to which hedge accounting is not applied
12th Fiscal Period (From May 1, 2020 to October 31, 2020)

Not applicable.
13th Fiscal Period (From November 1, 2020 to April 30, 2021)

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

14. Retirement Benefits
12th Fiscal Period (From May 1, 2020 to October 31, 2020)

Not applicable.

Not applicable.
13th Fiscal Period (From November 1, 2020 to April 30, 2021)
Not applicable.

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.

(Thousands of yen)

12th Fiscal Period (As of October 31, 2020)
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*1*2Long-term
loans
payableLong-term
loans
payable(Thousands of yen)Contract amount

43,280,000

110,661,000

Of which,over
1 yearFair value

28,980,000(257,812)

105,311,000

Calculation
method offair value*2－

13th Fiscal Period

2,179,669

2,131,089

34,037

40,844(As of April 30, 2021)

Deferred tax assets
Valuation difference on assets acquired due to merger
Amortization of leasehold rights in trust*1

12th Fiscal Period(As of October 31, 2020)

81,10754,501

Deferred tax assets (subtotal)

2,294,814

2,226,435

Valuation allowance for total deductible temporary
difference(2,294,814)(2,226,435)

－

－

－

－

Deferred gains or losses on hedges

Total deferred tax assets
Net deferred tax assets

Fair value is quoted by counterparties based on the prevailing market interest rates.

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.

59

Main
hedgeditem

15. Income Taxes
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause

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

60

12th Fiscal Period (From May 1, 2020 to October 31, 2020)

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(%)

12th Fiscal Period(As of October 31, 2020)

Statutory tax rate

31.46

31.46

(32.51)（31.80）Changes in valuation allowance

0.61

0.68

Reversal of reserve for reduction entry

0.44

0.12

Provision of reserve for reduction entry－（0.46）

0.01

0.01

0.01

0.01

Other
Effective income tax rate
after application of tax-effect accounting

16. Profit or Loss of Affiliates Ac counted for Under the Equity Method
12th Fiscal Period (From May 1, 2020 to October 31, 2020)
Not applicable.
13th Fiscal Period (From November 1, 2020 to April 30, 2021)
Not applicable.

17. Transactions with Related Parties
1. Parent company and major corporate unitholders.
12th Fiscal Period (From May 1, 2020 to October 31, 2020)

Not applicable.
13th Fiscal Period (From November 1, 2020 to April 30, 2021)
Not applicable.

2. Subsidiaries and affiliates.
12th Fiscal Period (From May 1, 2020 to October 31, 2020)

Not applicable.
13th Fiscal Period (From November 1, 2020 to April 30, 2021)
Not applicable.

3. Sister companies.
12th Fiscal Period (From May 1, 2020 to October 31, 2020)

Not applicable.
13th Fiscal Period (From November 1, 2020 to April 30, 2021)
Not applicable.

Name(As of April 30, 2021)[Adjustments]
Deductible cash distribution

Type

13th Fiscal Period

Description ofPercentage ofoccupation

held by (in) SHR

business orvoting rights

Executive Director
Directoror close
relative

JunichiInoue

Description oftransaction

Transaction
amount(Thousandsof yen)Account
item

Balanceat end of period(Thousands ofyen)

Payment of assetof SHR andmanagement fees

Representative
Director of Sekisui－

House AssetManagement, Ltd.

to Sekisui House
Asset

984,709

Management, Ltd.
(Note 1)

Accounts
payable– other

1,083,179(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.

13th Fiscal Period (From November 1, 2020 to April 30, 2021)
Type

Name

Directoror close
relative

JunichiInoue

Description ofbusiness or
occupation

Percentage ofvoting rights
held by (in) SHR

Executive Directorof SHR and
Representative
Director of Sekisui－

House AssetManagement, Ltd.

Description oftransaction
Payment of asset
management feesto Sekisui House
Asset

Transaction
amount(Thousandsof yen)1,032,565

Management, Ltd.
(Note 1)

Account
item

Balanceat end of period(Thousands ofyen)

Accounts
payable– other

1,132,637(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 2,895 thousand yen of asset management fees pertaining to real estate sales.
(Note 3) Consumption taxes are not included in the transaction amount but are included in the balance at end of period.

(Note 4) Junichi Inoue resigned from the position of Executive Director on January 31, 2021, and Atsuhiro Kida, Substitute Executive
Director, was appointed as the Executive Director on February 1, 2021. The transaction amount includes the transaction
amount for the current term, including the period of Atsuhiro Kida’s tenure. Junichi Inoue resigned as the President &Representative Director of Sekisui House Asset Management, Ltd. on February 1, 2021, and Toru Abe was appointed
President & Representative Director of the company on the same day.

18. Asset Retirement Obligations
12th Fiscal Period (From May 1, 2020 to October 31, 2020)

Not applicable.
13th Fiscal Period (From November 1, 2020 to April 30, 2021)
Not applicable.

19. Investment and Rental Properties
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 ofthese investment and rental properties.

(Thousands of yen)

4. Directors and major individual unitholders.

12th Fiscal Period(From May 1, 2020
to October 31, 2020)

13th Fiscal Period(From November 1, 2020
to April 30, 2021)

Carrying amount
Balance at beginning of period

524,929,023

523,075,672

Amount of increase (decrease) during period(1,853,351)

1,299,890

Balance at end of period

523,075,672

524,375,562

600,728,000

610,153,000

Fair value at end of period

61

62

(Note 1) Carrying amount is the book value less accumulated depreciation.

(Note 2) Net decrease during the 12th fiscal period is mainly attributable to depreciation (2,444,851 thousand yen). Net increase

2 1. Per Unit Information
12th Fiscal Period

during the 13th fiscal period is mainly attributable to the acquisition of 3 new properties (3,914,120 thousand yen), offset by a

(From May 1, 2020
to October 31, 2020)

decrease during the period mainly attributable to the disposition of one property (800,488 thousand yen) that SHR had owned
and depreciation (2,468,170 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 12th and 13th fiscal periods for investment and rental properties
is presented in “6. Notes to Statement of Income and Retained Earnings”.

13th Fiscal Period(From November 1, 2020
to April 30, 2021)

Net assets per unit

66,747yen

66,738yen

Net income per unit

1,630yen

1,656yen(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.

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
12th Fiscal Period (From May 1, 2020 to October 31, 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
1ሻ 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.
2ሻ Property, plant and equipment

The following is the basis for calculating net income per unit.

12th 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)

13th Fiscal Period(From May 1, 2020
to October 31, 2020)(From November 1, 2020
to April 30, 2021)

6,992,995

7,103,009－－

6,992,995

7,103,009

4,288,666

4,288,666

22. Significant Subsequent Events
Not applicable.

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
1,384,376

Name of related segment
Real estate leasing business13th Fiscal Period (From November 1, 2020 to April 30, 2021)(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
1ሻ 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.
2ሻ 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.

63

Operating revenue
1,364,382

Name of related segment
Real estate leasing business64

3. Schedule of property, plant and equipment and intangible assets(7) S u p p l e m e n t a r y S c h e d u l e s
13th Fiscal Period (From November 1, 2020 to April 30, 2021)
1. Schedule of securities(1) Shares

Type of assets

Not applicable.

(2) Securities other than shares
Not applicable.

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

33,380,000

19,150,000
106,391,000(Note 3)

156,771,000

125,541,000（173,239）

1,571,922

27,3672,236,271

2,319,106

159,088,974

1,037

1,598,252

247,163

31,6791,351,088

12,950－2,249,222

284,11350,961

1,965,109

153

－

－

153

134

38

19

439,351

107,824

1,233

545,942

118,298

40,928427,644

357,199,586

2,452,709

509,640

359,142,655－－

359,142,655

61,142－

61,142－－－536,284,796

4,568,129

888,763

539,964,162

17,988,670

2,442,715

521,975,492

2,552,025－－

2,552,025

152,554

25,4252,399,470

Other

14,729682－

15,411

11,470751

3,941

Subtotal

2,566,754－

2,567,437

164,025

26,1772,403,411

888,763542,531,599

18,152,695

2,468,892

524,378,904

andequipment in(Note1)(Note2)trust
Property,plant and123,391,000

315,709

Notes

Machinery

Fair value(Note 2)

（173,239）

1,967,276

17,338,960

in trust

Of which,over 1 year

174,776,368

Net balanceat end ofperiod176,427,935

Structures(Thousands of yen)

Balanceat end ofperiod(Thousands of yen)
Accumulated depreciation
For theperiodin trust

Contract amount (Note 1)

Amount ofdecreaseduringperiodoraccumulated
amortization

Buildings

2. Contract amount and fair value of derivative transactions

Balanceat beginningof period

Amount ofincreaseduringperiodequipment

Vehicles intrust
Tools,
furniture andfixtures intrust(Note 1) The contract amount of interest rate swap transactions is based on the notional principal amount.

Land in trust(Note 3) The fair value is omitted because the transaction meets the criteria for the special accounting treatment under theConstruction(Note 2) Fair value is quoted by counterparties based on the prevailing market interest rates.

in progress inAccounting Standards for Financial Instruments.

(Note1)(Note2)trust
Subtotal
Intangible Leasehold
assetsrights in
trust

Total

538,851,551

682
4,568,811(Note1) The increase during the fiscal period under review is mainly attributable to the acquisition of MAST STYLE HIGASHIBETSUIN,
Granmast Kayaba, and MAST STYLE SHIRAKABEMINAMI.
(Note2) The decrease during the fiscal period under review is attributable to the disposition of Esty Maison Sangenjaya

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”.

65

66

5. Schedule of investment corporation bonds
Name

Issue date

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)
SHR
Seventh Series
September 9,
Unsecured Investment
2020
Corporation Bond
(Green Bonds)
SHR
Eighth Series
September 9,
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(%)

Redemption Use of
dateproceeds

3,000,000－

3,000,000

1.069

February 28,(Note 2) Unsecured2024

3,000,000－

2,000,000－

3,000,000

2,000,000

0.871

0.340

August30,2024

Security

category(Note 2) Unsecured

September 8,(Note 2) Unsecured
2026

3,000,000－

4,000,000－

2,500,000－

5,000,000－

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

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

3,000,000

4,000,000

2,500,000

5,000,000

0.240

0.220

0.570

0.220

July 13,
2022

July 11,2024

July 11,2029(Note 2) Unsecured(Note 2) Unsecured

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited
The Senshu Ikeda Bank,Ltd.
The Yamaguchi Bank, Ltd.
MUFG Bank, Ltd.

(Note 2) Unsecured

November 1,(Note 2) Unsecured2024

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited
Mizuho Bank, Ltd.

2,000,000－

2,000,000

0.500

February 28,(Note 3) Unsecured2030

Long- Sumitomo Mitsui Banking
term Corporationloans THE BANK OF FUKUOKA,
payable LTD.
Shinkin Central BankThe Shizuoka Bank, Ltd.

4,000,000－

4,000,000

0.250

September 9,(Note 2) Unsecured
2025

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

4,000,000－

32,500,000－

4,000,000

32,500,000

0.510

－

September 9,(Note 2) Unsecured
2030

－

－

－

(Thousands of yen)Due in1 year or less67

LenderMizuho Bank, Ltd.

(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.

Investment Corporation Bonds

6. Schedule of loans payable

1 to 2 years－

3,000,000

2 to 3 years
3,000,000

3 to 4 years
12,000,000

4 to 5 years
4,000,000

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

Amount ofincreaseduringperiodAmount ofdecreaseduringperiod－－1,160,000－－

1,160,000

960,000－

880,000－

880,000

800,000－－

800,000

300,000－－

300,000－－

300,000

400,000－－

400,000

500,000

500,000

400,000－－

400,000－－

500,000－

500,000－

500,000－

500,000－

500,000－

500,000－

500,000－

500,000－

500,000－

500,000－

500,000－

500,000－

500,000－－

500,000

Balanceat beginning of
periodBalanceat end ofperiod960,000

400,000－－

400,000－－

500,000

1,500,000－－

1,500,000

980,000－－

980,000

800,000－

800,000

300,000－－

300,000－

300,000－

300,000－

500,000－

500,000－

500,000

500,000
500,000－－

2,450,000

－
－
－

－

2,450,000

1,950,000－－

1,950,000

900,000－－

900,000

2,500,000－－

2,500,000

2,000,000－－

2,000,000

5,100,000

－
－

－
－

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

Development Bank of JapanInc.
The Norinchukin Bank

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

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank of Japan
Inc.

4,600,000

1.17350

0.95225(Thousands of yen)
Repayment
due date

Mar. 31,2022

Feb. 28, 2022
(Note2)

Repayment
methodUse ofSecurity
proceeds

Purchaseof assets
andrelatedexpensesFeb. 26, 2021

Repayment ofloans
payable1.11000

0.97300

Feb. 28, 2022
(Note2)

LumpUnsum
securedpayment
Unat
Purchaseguaranmaturit of assets
Feb. 26, 2021
teed
y
and
relatedexpenses

0.83600

Aug. 31, 2021
(Note2)0.96475

Aug. 31, 2022

0.94060

Nov. 30, 2021
(Note2)

Repayment ofloans
payable2,400,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

MUFG Bank, Ltd.

0.24727

300,000

500,000

500,000

Averageinterest
rate(%)(Note 1)

Purchaseof assets
andrelatedexpenses

700,000
700,000
1.47450

Nov. 30, 2024

68

category

LenderMizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
The Norinchukin Bank

Amount ofincreaseduringperiodAmount ofdecreaseduringperiodBalanceat end ofperiod600,000－

600,000－

300,000－

300,000－

500,000

－
－
－
－
－
－
－
－

500,000

－
－
－
－
－
－

Shinkin Central BankThe Senshu Ikeda Bank,Ltd
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
Corporation
Resona Bank, Limited

500,000
500,000

500,000
500,000
500,000
500,000
500,000

Mizuho Bank, Ltd.
Development Bank of JapanInc.
Mizuho Bank, Ltd.

Feb. 26, 2021

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

Amount ofdecreaseduringperiodBalanceat end ofperiod100,000－－

100,000

2,100,000－－

2,100,000

450,000－－

450,000

450,000－－

450,000

1,000,000－－

1,000,000

700,000
1,100,000

－
－

－
－

1,100,000

1,100,000－－

1,100,000

450,000－－

450,000

500,000－－

500,000

300,000－－－－－

300,000

750,000－－

750,000
800,000－

500,000

The Norinchukin Bank

300,000

Aozora Bank, Ltd.

200,000

The Yamaguchi Bank, Ltd.

100,000

MUFG Bank, Ltd.

450,000－－－－－

600,000－－

600,000

200,000－－

200,000

100,000

－
－
－
－
－
－

100,000

1,000,000－－

1,000,000

MUFG Bank, Ltd.

1,300,000
1,000,000－－

1,300,000

Mizuho Bank, Ltd.

－－

600,000－－

600,000

300,000－－

300,000

0.73975

0.85250Development Bank of JapanInc.
THE BANK OF FUKUOKA,LTD.
Shinkin Central BankThe Senshu Ikeda Bank,Ltd
The Shizuoka Bank, Ltd.

1,000,000

800,000－－

800,000

500,000－－

500,000

500,000－－

700,000－－

700,000

200,000

－
－
－
－
－
－
－

200,000

1,650,000
950,000－－－

500,000

Feb. 28, 2023
0.86650

MUFG Bank, Ltd.

1,650,000

MUFG Bank, Ltd.

200,000

Mizuho Bank, Ltd.

950,000

－
－
－
－
－
－
－
－
－
－

1,650,000－

1,650,000－

850,000－

850,000－

500,000－

500,000－

550,000

550,000
650,000－－－

700,000

0.884700.88500

Long- Shinkin Central Bank
term The Senshu Ikeda Bank,loans Ltd
payable The Shizuoka Bank, Ltd.
The 77 Bank, Ltd.

200,000

The Hiroshima Bank, Ltd.

200,000

The Yamaguchi Bank, Ltd.

200,000

200,000
200,000
200,000

200,000

Feb. 28, 2022
(Note2)

LumpUnsum
Repaymesecuredpayment
nt of
Unat
loans
guaranmaturit payable
teedy200,000
200,000
200,000
200,000
200,000
200,000

The Norinchukin Bank

650,000

MUFG Bank, Ltd.

700,000－－－

650,000－－

650,000

350,000－－

350,000

650,000－－

650,000

350,000－－

350,000

300,000－－－－

300,000

MUFG Bank, Ltd.

750,000

MUFG Bank, Ltd.

500,000

Mizuho Bank, Ltd.

400,000－－－－

700,000－－

700,000

350,000－－

350,000

300,000－－

300,000

100,000－－

100,000

750,000

0.61760

100,000

Mizuho Bank, Ltd.

200,000
200,000－－

200,000

400,000－－

400,000

500,000－－

500,000

300,000－－－－－

300,000

800,000－－－－－

800,000－－

800,000

400,000－－

400,000

1,560,000－

1,560,000－

830,000－

830,000－

300,000

MUFG Bank, Ltd.

600,000

MUFG Bank, Ltd.

1,000,000

Mizuho Bank, Ltd.

Nov. 30, 2020
0.62760

Nov. 30, 2022
0.89470

1.00850

500,000
400,000
1.01850

Nov. 30, 2023

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

100,000
200,000

600,000

0.57000

800,000－

550,000－

370,000－

370,000－

370,000

370,000

－

－
－
－
－
－

1,810,000

MUFG Bank, Ltd.

600,000

Mizuho Bank, Ltd.

200,000

－
－
－
－
－
－

300,000－－

300,000

900,000

Unsecured
Unguaranteed

1,000,000

370,000

Mizuho Bank, Ltd.

0.49500

Lumpsum
payment
atAug. 30, 2024 maturity300,000－

440,000

0.50500

100,000－

MUFG Bank, Ltd.

Feb. 29, 2024

100,000

370,000

1,810,000

Purchaseof assets
andrelatedexpenses

0.63800

100,000

550,000

MUFG Bank, Ltd.

Aug. 31, 2023

450,000

The Hiroshima Bank, Ltd.

The Norinchukin Bank

Use ofSecurity
proceeds

0.68030

100,000

100,000

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

Repayment
method

0.67400

200,000

The 77 Bank, Ltd.

100,000

Repayment
due date

300,000

－
－
－
－
－
－

100,000

Averageinterest
rate(%)(Note 1)700,000

500,000

Development Bank of JapanInc.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

LenderAmount ofincreaseduringperiod－－Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Resona Bank, Limited

category

Balanceat beginning of
period－800,000

Development Bank of JapanInc.
Mizuho Bank, Ltd.

Use ofSecurity
proceeds

500,000

500,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

Repayment
method500,000

THE BANK OF FUKUOKA,LTD.

THE BANK OF FUKUOKA,
LTD.
Aozora Bank, Ltd.

0.62800

Repayment
due date

300,000

The Norinchukin Bank

The Norinchukin Bank

Averageinterest
rate(%)(Note 1)

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

－
－

－
－

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

69

Balanceat beginning of
period440,000
900,000
600,000

0.59750

0.28318

0.60500
0.67000

Aug. 29, 2025

Nov. 30, 2020

Repayment ofloans
payableSep. 8, 2026

0.61000

200,000

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

600,000－－

600,000

400,000
300,000－－－－

400,000

Shinkin Central Bank

0.67000

Feb. 28, 2025

300,00070

category

Lender

MUFG Bank, Ltd.

1,500,000

MUFG Bank, Ltd.

800,000

Mizuho Bank, Ltd.

700,000

Development Bank of JapanInc.
THE BANK OF FUKUOKA,
LTD.
Aozora Bank, Ltd.
The Yamaguchi Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Resona Bank, Limited

Amount ofincreaseduringperiodAmount ofdecreaseduringperiod

－
－
－

－
－
－
－

1,200,000－

500,000

300,000－－－－

300,000

500,000
870,000－－

870,000

480,000－－

480,000

300,000－－－－－

300,000－

220,000

990,000

MUFG Bank, Ltd.

260,000

Mizuho Bank, Ltd.

550,000
220,000

－

－
－
－
－

176,000－

750,000
600,000－

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

2,352,000
750,000－－

1,050,000－－

650,000

950,000－－－

950,000

650,000－－－

550,000－－

550,000

750,000－－

750,000

1,050,000－－

1,050,000

600,000－－

600,000

650,000－－

1,050,000

650,000－－

650,000－－－

950,000

The Norinchukin Bank

750,000

MUFG Bank, Ltd.

650,000－－－

550,000－－

550,000

500,000

－
－
－
－
－
－
－

500,000

Development Bank of JapanInc.
MUFG Bank, Ltd.

650,000

MUFG Bank, Ltd.

1,900,000

Mizuho Bank, Ltd.

4,200,000
1,900,000－－

1,900,000

1,480,000－－

1,480,000

320,000－－

320,000

500,000

Mizuho Bank, Ltd.

100,000

The 77 Bank, Ltd.

500,000

The Hiroshima Bank, Ltd.

500,000

Sumitomo Mitsui Banking
Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Development Bank of JapanInc.
MUFG Bank, Ltd.

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

Aug. 31, 2021
(Note2)

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

0.37000

0.45254

Nov. 30, 2023

0.61380

Aug. 29, 2025

0.34800

Jul. 13, 2022

0.353410.34000

0.41800

0.56500

500,000
100,000
500,000

0.63500

Feb. 27, 2026

500,000
1,900,000
4,200,000

0.70000
0.78300

0.24306

500,000－－

500,000

200,000－－

200,000

376,000－－

376,000

0.28568

300,000－－

300,000

0.34900－

2,459,000－－

260,000

900,000－－

900,000

565,000－－

565,000

0.48000

450,000－－

450,000

0.56500

1,332,000－－

1,332,000

390,000－－

390,000

1,350,000－－

1,350,000

500,000－－

500,000

500,000－－

500,000－－

500,000

700,000－－

700,000

200,000－－

200,000

200,000－－－－

200,000

700,000－－

700,000

400,000－－

400,000

400,000－－

400,000

200,000－－－－－

200,000

800,000－－－－－

700,000－－

700,000

200,000－－

200,000

400,000－－

400,000

200,000－－－－

200,000

Long- Shinkin Central Bank
term
MUFG Bank, Ltd.
loans
payable Mizuho Bank, Ltd.

Sumitomo Mitsui Banking
Corporation

100,000

200,000
200,000
1,000,000－

1,000,000－－

200,000

400,000－－

400,000

300,000－－

300,000

300,000－－

300,000

200,000－－

200,000

200,000－－

200,000－－

200,000

1,410,000－－

1,410,000

1,200,000－－

1,200,000

1,300,000－－

1,300,000

600,000－－

600,000

Resona Bank, Limited

700,000－－

700,000

Shinkin Central Bank

200,000－－

200,000

1,000,000－－

1,000,000

MUFG Bank, Ltd.

0.39580

0.40580

0.55600－

Aug. 31, 2021
(Note2)

May. 31,2023

Aug. 30, 2024

LumpUnsum
Repaymesecuredpayment
nt of
Unat
loans
guaranmaturit payableteedy800,000

200,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

0.30900

1,000,000

1,000,000

Mizuho Bank, Ltd.

0.29900

0.41388

2,400,000

Aug. 31, 2027

Feb. 26, 2027
0.57500

200,000

Mizuho Bank, Ltd.

The Yamaguchi Bank, Ltd.

Aug. 30, 2024

200,000

1,400,000

THE BANK OF FUKUOKA,LTD.
The Senshu Ikeda Bank,Ltd
The 77 Bank, Ltd.

Use ofSecurity
proceeds

800,000

MUFG Bank, Ltd.

500,000

Repayment
method100,000
1,000,000－－－－

The Norinchukin Bank

0.35900

Repayment
due date

500,000

800,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

0.42622－260,000

Mizuho Bank, Ltd.

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

May. 31,2023

2,459,000

Balanceat end ofperiod1,000,000

The Norinchukin Bank

LumpUnsum
Repaymesecuredpayment
nt of
Unat
loans
guaranmaturit payableteedyAmount ofdecreaseduringperiodMUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

0.32000

Averageinterest
rate(%)(Note 1)

Amount ofincreaseduringperiodBalanceat beginning of
period－－－－The Norinchukin Bank

750,000

－
－
－
－
－
－
－

MUFG Bank, Ltd.

0.27306

750,000

1,050,000

950,000

Feb. 27, 2026

600,000

650,000
750,000

Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.
Development Bank of JapanInc.
MUFG Bank, Ltd.

1,050,000

1,050,000

LenderMizuho Bank, Ltd.

550,000

176,000

1,050,000

0.77880

category

Mizuho Bank, Ltd.

0.72500

260,000

220,000

MUFG Bank, Ltd.

LongThe Norinchukin Banktermloans MUFG Bank, Ltd.
payable Development Bank of JapanInc.
MUFG Bank, Ltd.

990,000－

Mizuho Bank, Ltd.

Use ofSecurity
proceeds

210,000－

2,352,000

Repayment
method500,000

220,000－－－－

Repayment
due date

700,000－

MUFG Bank, Ltd.

Averageinterest
rate(%)(Note 1)800,000

－

－
－
－
－
－

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

1,500,000

500,000

210,000

The Norinchukin Bank

Balanceat end ofperiod1,200,000

The Norinchukin Bank

Mizuho Trust & Banking
Co., Ltd.
Development Bank of JapanInc.
Mizuho Bank, Ltd.

71

Balanceat beginning of
periodAug. 31, 2026
0.56600

500,000
1,400,000

0.68500

2,400,000

0.69500

Feb. 29, 2028

200,000

0.28100

Aug. 31, 2023

0.27100

Aug. 30, 202472

category

LenderMizuho Bank, Ltd.

Amount ofincreaseduringperiodAmount ofdecreaseduringperiodBalanceat end ofperiodAverageinterest
rate(%)(Note 1)－－1,500,000－－

1,230,000

200,000－－

200,000

600,000－－

600,000

Resona Bank, Limited

800,000－－

800,000

The Norinchukin Bank

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－－

300,000

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.41000

MUFG Bank, Ltd.

1,170,000－－

1,170,000

0.46000

Development Bank of JapanInc.
The Senshu Ikeda Bank,Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited

900,000－－

900,000

300,000－－

300,000

1,200,000－－

1,200,000

200,000－－

800,000－－

800,000

Repayment
due date

Repayment
methodUse ofSecurity
proceeds

category

Amount ofdecreaseduringperiod1,370,000－－

1,370,000

0.45000

400,000－－

400,000

0.36000－－

750,000－－

750,000

640,000－

610,000－

610,000－－

300,000－－

300,000

100,000

Sumitomo Mitsui Banking
Corporation－

800,000－

800,000 0.2860000 May. 30, 2025

Sumitomo Mitsui Trust
Bank, Limited－

1,380,000－

1,380,000－－

800,000

800,000

210,000－－

Sumitomo Mitsui Banking
Corporation－

1,800,000－

1,800,000

Sumitomo Mitsui Trust
Bank, Limited－

300,000－

300,000 0.5070000

Mizuho Trust & Banking
Co., Ltd.

－

870,000－

870,000－－

1,100,000－－

1,100,000

1,020,000－

370,000－

370,000 0.4350000－－

200,000－－

200,000 0.2840000

600,000

Sumitomo Mitsui Banking
Corporation－

500,000－

500,000

Sumitomo Mitsui Trust
Bank, Limited－

500,000－

500,000－

500,000－

500,000－－－－－

1,000,000

1,000,000

700,000－－－－－

Sumitomo Mitsui Banking
Corporation－

600,000－

600,000－

500,000－

500,000－－－－－

500,000

500,000

1,000,000

－
－
－
－
－

217,442,000

23,950,000

LenderDevelopment Bank of JapanInc.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation

Feb. 27, 2026

MUFG Bank, Ltd.
Mizuho Bank, Ltd.

0.44000

MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Feb. 28, 2029

200,000
0.27300

Nov. 30, 2023

1,800,000－－

1,800,000

1,400,000－－

1,400,000

Mizuho Bank, Ltd.

300,000－－

300,000

1,000,000－－

1,000,000

800,000－－

800,000

MUFG Bank, Ltd.

1,700,000
1,300,000－－

1,700,000

Mizuho Bank, Ltd.

－－

1,200,000－－

1,200,000

600,000－－

600,000

900,000－－

900,000

800,000－－

800,000

Mizuho Bank, Ltd.

605,000－－

605,000

Sumitomo Mitsui Banking
Corporation

800,000－－

800,000

MUFG Bank, Ltd.

2,500,000－－

2,500,000

Mizuho Bank, Ltd.

400,000－－

400,000

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

The Norinchukin Bank

Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.

Longtermloanspayable Resona Bank, Limited
Development Bank of JapanInc.

Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.

545,000－－

545,000

500,000－－

500,000

500,000－－

500,000

1,542,000
300,000－－

1,542,000

Mizuho Bank, Ltd.

－－

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Resona Bank, Limited

500,000－－

500,000

2,500,000－－

2,500,000

500,000－－

500,000

200,000－－

200,000

MUFG Bank, Ltd.

400,000
990,000－－

400,000

Mizuho Bank, Ltd.

－－

1,840,000－－

1,840,000

600,000－－

600,000

700,000－－

700,000

500,000－－

500,000

The Norinchukin Bank

400,000
200,000

－
－
－

－
－
－

400,000

Shinkin Central BankThe Senshu Ikeda Bank,Ltd
The 77 Bank, Ltd.

400,000
200,000－－

400,000

The Yamaguchi Bank, Ltd.

－－

200,000

0.59900

May. 31,2028

0.50000

Mizuho Bank, Ltd.

0.29150

Aug. 29, 2025

0.28000

0.49500

Aug. 31, 2028

THE BANK OF FUKUOKA,LTD.
Shinkin Central Bank
The 77 Bank, Ltd.
The Shizuoka Bank, Ltd.
MUFG Bank, Ltd.

The Norinchukin BankThe Senshu Ikeda Bank,Ltd
The Yamaguchi Bank, Ltd.
The Hiroshima Bank, Ltd.

0.47500

0.29700

LumpUnRepayme
sum
securednt ofpayment
Unloansatguaranmaturit payableteedyMizuho Bank, Ltd.

Total

300,000

THE BANK OF FUKUOKA,LTD.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

May. 29,2026

1,300,000

MUFG Bank, Ltd.

Resona Bank, Limited

0.44100

Feb. 28, 2025

0.28700

990,000

Aug. 31, 2027

640,000

Repayment
due date

Repayment
methodUse ofSecurity
proceeds

Aug. 31, 2027

0.2660100 Nov. 30, 2022

100,000

210,000

500,000
1,000,000
300,000

500,000
500,000
500,000

LumpUnRepayme
sum
securednt ofpayment
Unloansatguaranmaturit payableteedy1,020,000

600,000

0.2940000

Aug. 29, 2025

500,000
1,000,000
300,000 0.5585000
700,000

0.5685000

Feb. 28, 2029

500,000
1,000,000
500,000
500,000

20,950,000 220,442,000(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.
(Note 2) 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 3) The following is the maturity schedule of long-term loans within five years of the balance sheet date.

Due in1 year or less
0.46600

Balanceat end ofperiodNov. 30, 2028

Resona Bank, Limited
Long- The Norinchukin Banktermloans Development Bank of Japanpayable Inc.
MUFG Bank, Ltd.

MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation

Balanceat beginning of
periodMizuho Bank, Ltd.
0.42000

Averageinterest
rate(%)(Note 1)

Amount ofincreaseduringperiodMUFG Bank, Ltd.

1,500,000
1,230,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

73

Balanceat beginning of
periodLong-term loans payable

35,590,000(Thousands of yen)
1 to 2 years
25,500,000

2 to 3 years
36,050,000

3 to 4 years
26,695,000

4 to 5 years
32,543,000

200,000
200,000
200,000

74

75

76

<MEMO>

77

78

Unitholder Information

Unitholder Information

Unitholder Memo

Change in Investment Unit Price and Trading Volume (From December 3, 2014 to May 31, 2021)
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.
2-8-4 Izumi, Suginami-ku, Tokyo
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. Jun. Sep. Dec. Mar.
2021
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 13th FP ended Apr. 2021)

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

276,300 units (6.4%)
774,499 units (18.1%)
271,375 units (6.3%)

2,966,492 units (69.2%)

Number ofinvestment units
owned by owner type
Number ofunitholders
by owner type278 persons (1.5%)
334 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: 18,942 persons

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

Other domestic firms

18,107 persons (95.6%)

223 persons (1.2%)(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 monthof FP

Announcement offinancial resultsfor FP

Apr.

Jun.
May

Closing month
of FP

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 resultsfor FP

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, finance, investment property andother information useful to investors are made available forviewing on the website.

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