FP 17 Semi-Annual Report
From November 1, 2022 to April 30, 2023

Securities Code 3309
4-15-1, Akasaka, Minato-ku, Tokyo
https://sekisuihouse-reit.co.jp/en/

Contents
Outline of Asset Management Operation

1

Outline of the Investment Corporation

12

Condition of Investment Assets

15

Capital Expenditures for Property

33

Condition of Expenses and Debts

35

Condition of Investment Transactions

36

Other Information

38

Financial Statements
Balance Sheet

39

Statement of Income and Retained Earnings

41

Statement of Changes in Net Assets

42

Statement of Cash Distributions

45

Statement of Cash Flows46

Notes to Financial Statements

47

Supplementary Schedules

65

Independent Auditor’s Report

Outline of Asset Management Operation
1.

Overview of the Fiscal Period under Review(1) Major Developments 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 anestablished development and management track record also in the property development business. SHR was
listed on the Real 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 “TwoInvestment 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 andSpring Investment Co., Ltd. as joint sponsor for the investment corporation, which was renamed from JOINTREIT 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 corporatename was changed to Sekisui House SI Residential Investment Corporation. Subsequently, in association withthe 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 to expand their assets and secure stable returns by utilizing their respective
strengths with the aim of continuous enhancement of unitholder value. However, intending to secure strong
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
to long 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 applies 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 anabsorption-type merger as of the same date as the effective date of the Investment Corporation Merger, with SHAM
being the surviving company and the former SHAM being the dissolving company, and changed the company name tothe 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 applies
hereinafter.
(*1) “Serviced apartments” refer to furnished residences with appliances where a dedicated operator provides certain
services to users. The same applies 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 applies hereinafter.
(Note 4) “Commercial properties” refer to real estate whose principal use is for office buildings, hotels and retail and otherproperties (including serviced apartments, serviced housing for the elderly, paid nursing homes and adult care centers(*); the same shall apply hereinafter.) and other non-residential business purposes. The same applies hereinafter.
(*) Some serviced housing for the elderly, paid nursing homes and adult care centers may fall under apartment houses as
defined in the Building Standards Act. The same applies hereinafter.

1(2) Operation Environment and Operation Performancea. Operation Environment
During the fiscal period under review, the Japanese economy showed weakness in certain areas, but improved
moderately overall.
Under these circumstances, in the real estate leasing market, residences and office buildings which are
positioned by SHR as core assets in its portfolio, constitutes for approximately 97% (acquisition price basis) of
the portfolio as of April 30, 2023 (the "end of the fiscal period under review"). As for residences, supply anddemand is strained due to the accelerating improvement in the employment environment, especially in theTokyo metropolitan area. Rents were on a upward trend, and the occupancy rate of the entire residential
portfolio increased significantly compared to the previous year, resulting in stable growth. As for officebuildings, although the office leasing market is showing signs of activity, it has yet to show progressiveness.
The trend to decrease office floor space continues, resulting in vacancy rates to remain flat or to increase,leading to a slight decline in rent levels. On the other hand, for hotels that make up about 3% of SHR’sportfolio (acquisition price basis), foreign visitors to Japan (estimated by the Japan National Tourism
Organization in April 2023) approached 1.94 million, which is the highest since October 2022 when theJapanese government accepted individual trips and resumed visa exemptions, and is approaching 2 million.
Compared to the same month of 2019, which was before the spread of COVID-19, it is on the way to recovery.
Furthermore, in the real estate transaction market, despite remained uncertainty related to international affairs,
expected yields have remained at low levels as real estate investors maintain their positive investment stancetoward high-quality properties in Japan under the accommodative monetary policy outlined by the Bank ofJapan.
b. Operation Performance
As of the end of the fiscal period under review, the number of properties SHR owned was 120 (comprising 113
residential properties and 7 commercial properties) with an aggregate acquisition price(Note) of 554,466 million
yen (270,466 million yen for residential properties and 284,000 million yen for commercial properties).
Moreover, the occupancy rate of SHR’s investment assets as of the end of the fiscal period under review stoodat 97.2% for residential properties, 94.3% for commercial properties and 96.5% 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 thenearest million yen). For properties SHR succeeded from SHI through the Investment Corporation Merger, however, thevalue 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 price should be the appraisal value upon the acquisition by SHR as such properties areaccounted for by the purchase method with SHR set as the acquiring corporation and SHI as the acquired corporation. The
same applies hereinafter.

(3) Overview of Fund Procurement
a. Borrowing of Funds
SHR refinanced borrowings totaling 18,800 million yen for payment due during the fiscal period underreview. Of which, 15,800 million yen are green loans within the scope of eligible green debt based on theGreen Finance Framework established in December 2022.
As a result, the balance of interest-bearing liabilities as of the end of the fiscal period under review is 258,242
million yen and the ratio of total interest-bearing liabilities to total assets (“LTV (total assets basis)”) is
45.4%.

2

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: Stable(4) ESG Initiatives
Based on the vision of “Managing assets to better provide for people, society and the future” , SHR
identifies materiality (important issues) and establishes targets (KPIs) to promote initiatives aimed at resolving
issues with a view to a sustainable society, while conducting real estate asset management with due
consideration given to ESG (Environment, Social and Governance).
In this fiscal period under review, a new long term greenhouse gas (hereinafter referred to as "GHG")
emissions reduction target was established to achieve net zero by FY 2050, and the medium term target was
adjusted to reduce 42% of the absolute Scope 1 and Scope 2 GHG emissions by FY 2030 (compared to FY2021). In addition, SHR has acquired SBTi validation through the Science Based Targets initiative ("SBTi")
regarding the medium term GHG reduction target.
Furthermore, SHR promotes the acquisition of Green Certification for owned properties, and as of the end of
the fiscal period under review, the acquisition rate (based on total floor area) was 78.9%, achieving theestablished KPI to acquire 70% or more by FY 2022. In terms of social initiatives, for the first time as SHR,
Garden City Shinagawa Gotenyama acquired Certification for CASBEE Wellness Office with the highest
evaluation "S Rank".
These ESG initiatives have been highly evaluated outside the company, resulting in SHR continuously being
selected as a constituent of the MSCI Japan ESG Select Leaders Index, in addition to being selected as aconstituent of the FTSE4Good Index Series provided by FTSE Russell this fiscal period.
(5) Overview of Business Performance and Distributions
Results in the fiscal period under review are operating revenue of 15,365 million yen, operating income of
7,508 million yen and ordinary income of 6,637 million yen, resulting in net income of 6,637 million yen. In
addition, concerning cash distributions, based on the application of special tax treatment for investment
corporations (Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, as
amended) (“Special Taxation Measures Act”)), SHR decided to distribute 7,733 million yen, which is
obtained by adding a reversal of the reserve for temporary difference adjustments (“RTA”) (194 million
yen) and a reversal of the reserve for reduction entry (911 million yen) to unappropriated retained earnings, as
distribution of earnings. Furthermore, pursuant to the policy for “distribution of money in excess of profits”
as set forth in Article 46, Paragraph 2 of the Articles of Incorporation of SHR, SHR decided to make a
distribution for the 70 million yen in allowance for temporary difference adjustments (“ATA”) for the
purpose of reflecting the effect on distributions of tax and accounting differences. Total distributions are 7,803
million yen.

3

2. Change in Total Number of Investment Units Issued and Outstanding
The following table sets forth the increase (/decrease) in unitholders’capital and the total number ofinvestment units issued and outstanding for the last five years from the end of the fiscal period under review.

Date

Unitholders’capital(million yen)

Event

Increase(Decrease)

Balance

Total number of investment
units issued and outstanding(units)Increase(Decrease)

Note

Balance

May 1, 2018

Split of investment units―

110,189

969,000

1,938,000(Note 1)

May 1, 2018

Allocation of investment
units through merger―

110,189

1,824,091

3,762,091(Note 2)June 10, 2019

Public offering

37,162

147,351

501,500

4,263,591(Note 3)

July 9, 2019

Third-party allotment

1,858

149,21025,075

4,288,666(Note 4)

November 1, 2021

Public offering

11,652160,862

137,500

4,426,166(Note 5)

November 29, 2021

Third-party allotment

420

161,283

4,967

4,431,133(Note 6)

October 17, 2022

Cancellation―

161,283(49,651)

4,381,482(Note 7)(Note 1) SHR implemented a two-for-one split of investment units with April 30, 2018 as the record date and May 1, 2018 as theeffective date.
(Note 2) 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.
(Note 3) New investment units were issued at an issue price of 76,537 yen (with the issue amount being 74,103 yen) per unit through apublic offering to procure funds for the acquisition of new properties.
(Note 4) New investment units were issued at an issue amount of 74,103 yen per unit by way of third-party allotment, with theproceeds thereof intended to be used for the partial repayment of the short-term loans that had been taken up to finance theacquisition of the new properties.
(Note 5) New investment units were issued at an issue price of 87,574 yen (with the issue amount being 84,744 yen) per unit through apublic offering to procure funds for the acquisition of new properties.
(Note 6) New investment units were issued at an issue amount of 84,744 yen per unit by way of third-party allotment, with theproceeds thereof intended to be used for the acquisition of new properties.
(Note 7) From June 16, 2022 to September 7, 2022, SHR acquired its own investment units through market purchases via the Tokyo
Stock Exchange based on a discretionary transaction contract with a securities company. As resolved at SHR's Board of
Directors Meeting on September 30, 2022, all acquired investment units were canceled on October 17, 2022. In addition,
funds related to the buyback of investment units were deducted from the capital surplus, thus there is no change inUnitholders’Capital.

[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.
13th fiscal period

14th fiscal period

15th fiscal period

16th fiscal period

17th fiscal period

From: Nov. 1, 2020
To: Apr. 30, 2021

From: May 1, 2021
To: Oct. 31, 2021

From: Nov. 1, 2021
To: Apr. 30, 2022

From: May 1, 2022
To: Oct. 31, 2022

From: Nov. 1, 2022
To: Apr. 30, 2023

High (yen)93,10098,60086,70085,60081,500Low (yen)

72,70086,20073,60075,50068,600Fiscal period43. Statement of Cash Distributions
Distribution per unit for the fiscal period under review (the 17th fiscal period) is 1,781 yen. The policy is to
distribute 7,733 million yen, which is the amount of unappropriated retained earnings after adding reversal of
RTA (194 million yen) and reversal of reserve for reduction entry (911 million yen) in application of thespecial 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).In addition, based on the policy of distributing money beyond the profit stipulated in
Article 46, Paragraph 2 of the Articles of Incorporation, SHR has decided to distribute ATA (70 million yen) as
distributions in excess of earnings, taking into account the effect on distributions of tax and accounting
differences. As a result, the total amount of distributions are 7,803 million yen.

Fiscal period
Total amount of unappropriatedretained earnings (thousandyen)
Amountofaccumulated
earnings (thousand yen)Totalamountof
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 the
totalamountof
cash
distribution (thousand yen)[Amount
ofrefundofinvestment in capital per unit](yen)
Total distribution amount from
ATA out of total amount ofrefund of investment in capital(thousand yen)[Distribution amount from ATA
per unit out of amount of refundof investment in capital perunit] (yen)Total distribution amount from
distribution
reducing
unitholders’ capital for tax
purpose out of total amount ofrefund of investment in capital(thousand yen)[Distribution amount from
distribution
reducing
unitholders’ capital for tax
purpose out of amount ofrefund of investment incapital per unit] (yen)13th fiscal period 14th fiscal period 15th fiscal period 16th fiscal period 17th fiscal period
From: Nov. 1, 2020 From: May 1, 2021 From: Nov. 1, 2021 From: May 1, 2022 From: Nov. 1, 2022
To: Apr. 30, 2021 To: Oct. 31, 2021 To: Apr. 30, 2022 To: Oct. 31, 2022 To: Apr. 30, 2023
7,103,009

8,520,020

6,745,643

7,204,510

6,637,238

103,708

1,195,848

－

－

9,334

7,183,515

7,732,464

7,524,063

7,509,860

7,803,419[1,675][1,803][1,698][1,714][1,781]

7,183,515

7,732,464

7,524,063

7,509,860

7,733,315[1,675][1,803][1,698][1,714][1,765]

－

－

－

－

70,103

[－]

[－]

[－]

[－]

[16]

－

－

－

－

70,103

[－]

[－]

[－]

[－]

[16]

－

－

－

－

－

[－]

[－]

[－]

[－]

[－]

5

4. Future Management Policy(1) Future Trends Outlook
It is expected that the Japanese economy will pick up in the future, partly due to the effects of various policies
with COVID-19 in mind. However, the downturn in the overseas economy poses a risk of downward pressure
on the economy amid the continued global monetary tightening. In addition, due attention should be paid to theeffects of inflation, supply-side constraints, and changes in financial markets. In this environment, as there aresigns of an improvement in the employment environment, we believe that the trend toward a return to central
Tokyo and the separation of households in rural areas will continue in housing, which is the base of living
within the real estate leasing market. With regard to offices, where business activities are based, supply anddemand are expected to ease due to the trend of contractual area shrinking due to changes in tenant needs
following the expansion of remote work, the consolidation of bases and the impact of new supply, and thus weanticipate that rents will remain weak. Hotel market is expected to recover due the Japanese government's
policy support and the relaxation of immigration restrictions, in addition to the increase in tourism demand
accumulated globally. However, it is necessary to continue to pay close attention to international affairs.
In the real estate transaction market, SHR believes that the expected yields will remain at low levels for theforeseeable future amid a financial environment that maintains large-scale monetary easing.
(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 ofdeveloping and operating residential properties and commercial properties, SHR will seek to secure stableearnings 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 throughthe initiatives 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 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 aresidence including comfort and safety and such and are expected to see strong leasing demand and supplies ofprime 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 House and 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
the core 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 fortenant companies’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 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 inJapan by 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 theSix Sekisui House Real Estate Companies. Thus, particularly with residential properties, SHR will be able toreceive 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.

6Sekisui House and Sekisui House Real Estate Group(Note 3) possess (a) property management skills based on theirrelationship with tenants, (b) know-how as a real estate developer to maintain/improve real estate value throughlarge-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
contribute to the improvement of tenant satisfaction or other factors, including energy efficiency andeco-friendliness, that contribute to the renovation/value enhancement of properties, (ii) personnel support,
including provision of know-how required for the operation of SHR, and (iii) support in areas such as
negotiation of master lease agreements with regard to commercial properties.
(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 applies hereinafter.
(Note 2) “Six Sekisui House Real Estate Companies” is a collective name for Sekisui House Real Estate Tohoku, Ltd., Sekisui
House Real Estate Tokyo, 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 Real Estate Holdings, Ltd. ,which is a wholly-owned subsidiary of Sekisui House, and arecore companies of real estate unit of the Sekisui House Group operating nationwide. The same applies 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.

(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
and stable 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 risksof fluctuations in 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
the time 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.

75. Significant Subsequent Events
Not applicable.
(Reference information)(1) Disposition of Asset
SHR decided on the disposition of trust beneficiary interest in domestic real estate and entered into a purchaseand sale agreement as follows. The disposition of the quasi co-ownership interest in trust beneficiary interest isscheduled to be carried out in 10 equal installments, with 10/100 of the ownership share to be disposed on eachplanned disposition date.
As a result of this disposition, a gain on sale of real estate properties is expected to be recorded during eachcalculation period as follows.
Property name: Gotenyama SH Building
Type of use: Office building
Location: Shinagawa-ku, Tokyo
Planned disposition price: 70,000 million yen (Note 1)
Contract date: March 29, 2023
Buyer: TIS Inc.
(Unit: million yen)1:

End of October 2023

Planneddisposition price(Note 1)7,000 (10%)

2:

End of April 2024

3:

End of October 2024

4:
5:Planned disposition date
(Note 2)Gain on disposition(expected) (Note 3)

Calculation period

1,017

Ending October 2023 (FP 18)

7,000 (10%)

2,080Ending April 2024 (FP 19)

7,000 (10%)

2,093Ending October 2024 (FP 20)

End of April 2025

7,000 (10%)

2,107Ending April 2025 (FP 21)

End of October 2025

7,000 (10%)

2,121Ending October 2025 (FP 22)

6:

End of April 2026

7,000 (10%)

2,135Ending April 2026 (FP 23)

7:

End of October 2026

7,000 (10%)

2,149Ending October 2026 (FP 24)

8:

End of April 2027

7,000 (10%)

2,163Ending April 2027 (FP 25)

9:End of October 2027

7,000 (10%)

2,177Ending October 2027 (FP 26)

10:
End of April 2028
7,000 (10%)
2,191Ending April 2028 (FP 27)(Note 1) “Planned disposition price” is the sale and purchase price stated in the sale and purchase agreement for the quasi
co-ownership interest in trust beneficiary interest (excluding consumption tax, local consumption tax, commission forsales, and other various expenses; rounded down to the nearest million yen).
(Note 2) In the event that the “planned disposition date” is not a business day, the said date will be the immediately precedingbusiness day. The same applies hereinafter.
(Note 3) “Gain on disposition (expected)” is the approximate value to be recorded on each planned disposition date as of thedate of this document and is subject to change. The same applies hereinafter.

8

(2) Borrowing of Funds
On May 31, 2023, SHR decided to undertake new borrowings in order to repay long-term borrowings totaling
9,700 million yen that was due on the same date, as follows. Of these borrowings, part of the borrowings will
be financed as green loans executed based on the Green Finance Framework established by SHR in December
2022.
a. Fixed Interest Rate Borrowings (Green Loan)
Category

Lenders(Note 1)
Mizuho Bank, Ltd.

Longterm

Borrowingamount(mm yen)Interest rate
(Note 2)
(Note 3)

Repayment
date(Note 4)

Repayment
method(Note 5)

May 31,
2023

Borrowingbased onindividual
loan
agreement,
dated May26, 2023.
The
lenders
under theloan
agreement
are asindicatedto the leftof thistable.

May 31,2030

Lump-sum Unsecured
repayment
andat maturity Unguaranteed

－

－

－

Security

570

Sumitomo Mitsui
Trust Bank,
Limited

1,240

Mizuho Trust &Banking Co., Ltd.

470

Resona Bank,
Limited.

1,150

The Norinchukin
Bank

850

Development Bankof Japan Inc.

550

Sumitomo Mitsui
Banking
Corporation

200

0.825%MUFG Bank, Ltd.
(Note 6)670

0.875%

5,700

－

Total

Drawdown Borrowing
datemethod

0.875%－－(Note 1) MUFG Bank, Ltd., Mizuho Bank, Ltd., and Sumitomo Mitsui Banking Corporation are arrangers of the above
borrowings.
(Note 2) The borrowing expenses and other charges payable to the lender are not included.
(Note 3) The first interest payment date will be the last day of November 2023. Subsequent interest payment dates will be the last
day of every six months and the principal repayment date. Where the relevant date is not a business day, such date willbe the immediately following business day or (if the immediately following business day falls into the next calendar
month) the immediately preceding business day.
(Note 4) Where the repayment date is not a business day, such date will be the immediately following business day or (if theimmediately following business day falls in the next calendar month) the immediately preceding business day.
(Note 5) SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of theabove borrowings (in whole or in part), in the period between the drawdown date and the repayment date.
(Note 6) The borrowing from MUFG Bank, Ltd. is an ESG Loan for J-REIT.

9b. Floating Interest Rate Borrowings
Category

Shortterm

Lenders(Note 1)

Borrowingamount(mm yen)

MUFG Bank, Ltd.
(Note 7)

1,230

Mizuho Bank, Ltd.

980

Sumitomo Mitsui
Banking Corporation

900

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

Total

Interest rate
(Note 2)
(Note 3)(Note 4)

Base rate (JBA
1-monthJapanese Yen
TIBOR) plus
510
0.170%

Drawdown Borrowing
datemethodRepayment
date(Note 5)

Repayment
method(Note 6)

May 31,
2023

Borrowingbased onindividual
loan
agreement,
dated May26, 2023.
The
lenders
under theloan
agreement
are asindicatedto the leftof thistable.

May 31,2024

Lump-sum Unsecured
repayment
andat maturity Unguaranteed

－

－

－

380

4,000

－

－

Security－(Note 1) MUFG Bank, Ltd., Mizuho Bank, Ltd., and Sumitomo Mitsui Banking Corporation are arrangers of the above
borrowings.
(Note 2) The borrowing expenses and other charge payable to the lenders are not included.
(Note 3) The base rate applicable to the calculation period for the interest payable on an interest payment date shall be theJapanese Yen TIBOR (Tokyo Inter Bank Offered Rate), corresponding to the calculation period of the interest, twobusiness days prior to the immediately preceding relevant interest payment date. The Japanese Yen TIBOR is publishedby the Japanese Bankers Association (JBA) TIBOR Administration. The base rate is subject to review every interest
payment date. Where no rate that corresponds to the interest calculation period exists, the base rate shall be that whichcorresponds to the concerned period calculated based on the method provided for in the relevant individual loan
agreement. For changes in the base rate (being the Japanese Yen TIBOR published by JBA), please check the website of
JBA TIBOR Administration (https://www.jbatibor.or.jp/english/rate/).
(Note 4) The first interest payment date will be the last day of June 2023. Subsequent interest payment dates will be the last day of
every month and the principal repayment date. Where the relevant date is not a business day, such date will be theimmediately following business day or (if the immediately following business day falls into the next calendar month) the
immediately preceding business day.
(Note 5) Where the repayment date is not a business day, such date will be the immediately following business day or (if theimmediately following business day falls in the next calendar month) the immediately preceding business day.
(Note 6) SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of theborrowings (in whole or in part), in the period between the drawdown date and the repayment date.
(Note 7) The borrowing from MUFG Bank, Ltd. is an ESG Loan for J-REIT.

10

(3) Borrowing of Funds
On May 31, 2023, SHR decided to undertake new green loan borrowings in order to fund the early repaymentof long-term borrowings totaling 4,000 million yen as follows.
Fixed Interest Rate Borrowings
Category

LenderBorrowing Interest rate
Drawdown
amount(Note 1)date
(mm yen) (Note 2)

2,000

Longterm

1.040%

May 31,
2023

Nippon Life
Insurance Company

Total

2,000

1.120%

4,000

－

－

Borrowing
methodRepayment Repayment
date
method(Note 3)(Note 4)

Security

Borrowingbased onindividual
January 30,
loan
2032
agreement,
dated May
Lump-sum Unsecured
18, 2023.
repayment
andThe lenderatmaturity
Unguaranteed
under theloan
November 30,
agreement is2032
as indicatedto the left ofthis table.
－

－

－

－

(Note 1) The borrowing expenses and other charges payable to the lender are not included.
(Note 2) The first interest payment date will be the last day of November 2023. Subsequent interest payment dates will be the last
day of every six months and the principal repayment date. Where the relevant date is not a business day, such date willbe the immediately following business day or (if the immediately following business day falls into the next calendar
month) the immediately preceding business day.
(Note 3) Where the repayment date is not a business day, such date will be the immediately following business day or (if theimmediately following business day falls in the next calendar month) the immediately preceding business day.
(Note 4) SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of theborrowings (in whole or in part), in the period between the drawdown date and the repayment date.

11

Outline of the Investment Corporation
1. 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
13th fiscal period 14th fiscal period 15th fiscal period 16th fiscal period 17th fiscal period(Apr. 30, 2021)(Oct. 31, 2021)(Apr. 30, 2022)(Oct. 31, 2022)(Apr. 30, 2023)

Total number of investment units
authorized (units)
Total number of investment units
issued and outstanding (units)

20,000,000

20,000,000

20,000,000

20,000,000

20,000,000

4,288,666

4,288,666

4,431,133

4,381,482

4,381,482

Unitholders’capital (million yen)

149,210

149,210161,283

161,283

161,283

Number of unitholders (persons)

18,942

18,637

20,87621,154

23,2702. Matters Concerning Investment Units
Of the unitholders as of the end of the fiscal period under review, the following are the top ten unitholders interms of investment unitholding ratio.

Number ofunits owned(units)Name

Custody Bank of Japan, Ltd. (Trust Account)

Percentage of
owned units tototal units issued
and outstanding(%)

1,160,050

26.48

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

694,467

15.85

Sekisui House, Ltd.

200,750

4.58

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

194,943

4.45

SMBC Nikko Securities Inc.

100,108

2.28

STATE STREET BANK WEST CLIENT - TREATY 505234

65,534

1.50

STATE STREET BANK AND TRUST COMPANY 505103

59,0381.35

SSBTC CLIENT OMNIBUS ACCOUNT

50,830

1.16

The Shinkumi Federation Bank

45,726

1.04

JP MORGAN CHASE BANK 385770

45,266

1.03

2,616,712

59.72

Total

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

123. Matters Concerning Directors, etc.
(1) Name and other information of the 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
Director
Supervisor
DirectorName

Key concurrently held position, etc.

Atsuhiro Kida

Director,
Sekisui House Asset Management, Ltd.

Yu YadaLawyer, HIFUMI Law

Rei Yamashita

Certified Public Accountant, Rei
Certified Public Accountant OfficeTotal amount of compensationfor each position during period(thousand yen)―
1,800

Yamashita

1,800

Independent Ernst & Young
17,400―
AuditorShinNihon LLC(Note 2)
(Note 1) None of the executive director or supervisory directors owns SHR investment units in their own name or in the name ofanother person. In addition, supervisory directors may be officers of other corporations other than those stated above, but
none of such corporations, including those stated above, has vested interest in SHR.
(Note 2) The total amount of compensation for the independent auditor, as stated above, is an approximation and includes
compensation for 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 thequality of audits, amount of audit fee and various other circumstances in a comprehensive manner.

13

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(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 the insured assumes liability for the execution of its duties or receives a claim
for the pursuit of such liability.

All Executive 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.

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

Name

Asset Management Company

Sekisui House Asset Management, Ltd.

Asset Custodian

Mitsubishi UFJ Trust and Banking Corporation

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

Administrative Agent (Administrative Agent for Operation of
Administrative Instruments)
Administrative Agent (Administrative Agent for Investment
Corporation Bonds)

Mitsubishi UFJ Trust and Banking Corporation
MUFG Bank, Ltd.

14

Condition of Investment Assets
1. 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.
As of the end of 16th fiscal period As of the end of 17th fiscal period(Oct. 31, 2022)(Apr. 30, 2023)
Total amountheld(million yen)
(Note 1)

Ratio to total
assets(%)(Note 2)

Total amountheld(million yen)
(Note 1)

Ratio to total
assets(%)(Note 2)

Greater Tokyo

209,51736.7

208,848

36.7

Other areas

55,8969.8

55,642

9.8

Three major
metropolitan areas

274,31248.0

273,498

48.0

―

―

―

―

539,726

94.5

537,989

94.5

Silent partnership equity interest (Note 4)

486

0.1

684

0.1

Deposits and other assets

30,786

5.4

30,531

5.4

Total amount of assets

570,999100.0

569,205100.0Type of asset

Asset category

Residential
properties
Real estate intrust
Commercial
properties

Geographical area, etc.

Other areas

Total of real estate in trust(Note 1) “Total amount held” is the carrying amount (or, for real estate in trust, the depreciated book value) as of the end of eachfiscal period, rounded down to the nearest million yen.
(Note 2) Figures for “Ratio to 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.
(Note 4) This is the equity interest in a silent partnership with Godo Kaisha Gemini1 and Godo Kaisha Gemini2 as the business
operators.

15

2. Major Portfolio Assets
The following table sets forth an overview of the major portfolio assets (top ten properties by book value at theend of period) of SHR as of the end of the fiscal period under review.
As apercentage of
total propertyrelated
Usage type
operatingrevenue(%) (Note 5)

Book value
at the end of
period(million yen)
(Note 1)

Leasable area(m2)
(Note 2)

Leased area(m2)
(Note 3)

Occupancy
rate(%)(Note 4)

Garden City Shinagawa Gotenyama

69,57038,577.99

32,611.77

84.5

10.6

Akasaka Garden City (Note 6)

49,985

21,735.43

18,995.17

87.4

6.5

Gotenyama SH Building (Note 7)

49,187

19,999.97

19,999.97

100.0

7.1

Hommachi Minami Garden City

41,931

29,657.53

29,657.53

100.0

8.5

35,88517,006.94

17,006.94

100.0

5.9

16,63618,092.98

18,092.98

100.0

2.6

Hotel

Prime Maison EGOTANOMORI

11,056

29,048.95

28,258.00

97.3

4.0

ResidencePrime Maison Nakameguro

10,183

6,033.98

5,855.76

97.0

1.4

Residence

Esty Maison Ojima

8,220

9,905.97

9,772.77

98.7

1.7

ResidencePrime Maison Shirokanedai Tower

7,870

6,772.89

6,415.68

94.7

1.5

Residence

Total

300,527

196,832.63

186,666.57

94.8

49.9

―

Name ofreal estate, etc.

Hommachi Garden City
(Office building portion) (Note 8)
Hommachi Garden City
(Hotel portion) (Note 8)

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, rounded down to the nearest million yen. The same applies hereinafter.
(Note 2) “Leasable area” refers to the floor area presumably available for leasing based on the lease agreement or building drawing,
etc. for each property that is valid as of the end of the fiscal period under review, rounded down to the second decimal place.
In cases where the properties SHR owns are co-ownership interest or quasi co-ownership interest of trust beneficiary interests
in real estate for respective properties, the figure indicates the value obtained by multiplying the leasable area of real estate orreal estate in trust (or the leasable area of exclusively owned portions for properties under compartmentalized ownershipinterest) by the ratio of the ownership interest owned by SHR or trustees. The same applies hereinafter.
(Note 3) “Leased area” refers to the sum total of the leased area indicated in the respective lease agreements, which are valid as ofthe end of the fiscal period under review, with the end tenants for each of the properties or the leased area based on building
drawings. However, the leasable area of each property is indicated in case fixed-rent type master lease agreements have beenconcluded with the master lease companies, regardless of whether lease agreements have been concluded with the end tenants.
For Akasaka Garden City, the figure indicates the area corresponding to the portions owned by SHR. The same applies
hereinafter.
(Note 4) “Occupancy rate” refers to the ratio of leased area to leasable area of each property as of the end of the fiscal period underreview, rounded to the nearest first decimal place. The figure indicated in the “Total” column indicates the ratio of thesum of leased area of each property to the sum total of leasable area of each property, rounded to the nearest first decimal
place.
(Note 5) Figures under the heading “As a percentage of total property-related operating revenue” indicate the ratio of
property-related operating revenue of each property for the fiscal period under review to total property-related operating
revenue of each property of SHR’s entire portfolio for the fiscal period under review, rounded to the nearest first decimal
place.

16

(Note 6) For “Akasaka Garden City” , as of June 10, 2019, SHR owned 65.45% quasi co-ownership interest of trust beneficiaryinterest in real estate regarding the compartmentalized 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%)). As of November 1, 2021,
SHR acquired the trust beneficiary interest in all of the exclusively-owned portions of the 5th floor through 9th floor above
ground of the building, as well as the accompanying right of site (ratio of right of site: 273,490/1,000,000 (or approximately
27.3%)) and in 96.05% of co-ownership of all of the exclusively-owned portions of the 10th floor above ground of thebuilding, as well as the accompanying right of site (ratio of right of site: 54,698/1,000,000 (or approximately 5.5%)), and thefigures indicate the value corresponding to the portions owned by SHR. The same applies hereinafter.
(Note 7) SHR has decided to transfer the trust beneficiary interest in real estate on March 29, 2023, and has concluded a purchase andsale agreement for the Gotenyama SH Building, as described in "Outline of Asset Management Operation, 5. Significant
Subsequent Events (Reference Information)" above. The same applies hereinafter.
(Note 8) “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 other information regarding the property may be described separately for the Office building portion and theHotel portion. The same applies hereinafter.

17

3. Estimated value at the end of period
The following table lists an overview of the properties owned by SHR as of the end of the fiscal period underreview.

Usage
type

Property
No.
(Note 1)Name ofreal estate, etc.

Location(Note 2)

R-001

Esty Maison Ginza

Chuo-ku, Tokyo

R-002

Esty Maison Azabunagasaka

Minato-ku, Tokyo

R-003

Esty Maison Ebisu II

R-004

Esty Maison Ebisu

R-005

Esty Maison Kanda

R-006

Esty Maison Kitashinjuku

R-007

Esty Maison Asakusakomagata

Taito-ku, Tokyo

R-008

Esty Maison Kawasaki

Kawasaki-shi,
Kanagawa

R-010

Esty Maison Kameido

Koto-ku, Tokyo

R-011

Esty Maison Meguro

R-012

Esty Maison Sugamo

R-013

Esty Maison Kyobashi

Osaka-shi, Osaka

R-014

Esty Maison Hakuraku

Yokohama-shi,
Kanagawa

R-015

Esty Maison Minamihorie

Osaka-shi, Osaka

R-016

Esty Maison Gotanda(Note 4)

R-017

Esty Maison Oisendaizaka

R-018

Esty Maison
Shinagawa Seaside

Shinagawa-ku,
Tokyo
Shinagawa-ku,
Tokyo
Shinagawa-ku,
Tokyo

R-019

Esty Maison Minamiazabu

Minato-ku, Tokyo

R-021

Esty Maison Kawasaki II

Kawasaki-shi,
Kanagawa

R-022

Esty Maison Azabujuban

Minato-ku, Tokyo

R-023

Esty Maison Itabashihoncho

R-027

Esty Maison
Musashikoyama(Note 5)

R-028

Esty Maison Sendagi(Note 6)

R-030

Esty Maison Hakatahigashi

Residence

Shibuya-ku,
TokyoShibuya-ku,
Tokyo
Chiyoda-ku,
TokyoShinjuku-ku,
Tokyo

Meguro-ku,
TokyoToshima-ku,
Tokyo

Itabashi-ku,
Tokyo
Shinagawa-ku,
TokyoBunkyo-ku,
TokyoFukuoka-shi,
Fukuoka

18

Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
6,586

7,980

1,765

2,030

2,024

2,490

911

940

1,538

1,980

1,521

1,910

2,062

2,610

2,350

2,910

1,465

1,930

1,063

1,440

1,585

1,880

2,885

3,200

877

993

1,111

1,170

3,018

3,680

2,681

3,130

2,107

2,540

1,286

1,420

1,863

2,470

2,702

3,050

967

1,050

999

1,220

671

821

2,167

2,730

Usagetype

Property
No.
(Note 1)Name ofreal estate, etc.

R-033

Prime Maison Musashinonomori

Kodaira-shi,
Tokyo

R-034

Prime Maison Higashisakura

Nagoya-shi, Aichi

R-035

Prime Maison Kayabakoen

Nagoya-shi, Aichi

R-036

Esty Maison Sangenjaya II

R-037

Esty Maison Itabashi C6

R-038

Sha Maison Stage
Hakata(Note 7)

R-039

Esty Maison Kinshicho

R-040

Esty Maison Musashikoganei

R-041

Prime Maison Gokiso

Nagoya-shi, Aichi

R-042

Prime Maison Yuhigaoka

Osaka-shi, Osaka

R-043

Prime Maison Kitatanabe

Osaka-shi, Osaka

R-044

Prime Maison Momochihama

Fukuoka-shi,
Fukuoka

R-045

Esty Maison Akihabara

Taito-ku, Tokyo

R-046

Esty Maison Sasazuka

Shibuya-ku,
Tokyo

R-047

Prime Maison Ginza East

Chuo-ku, Tokyo

R-048

Prime Maison Takami

Nagoya-shi, Aichi

R-049

Prime Maison Yadaminami

Nagoya-shi, Aichi

R-050

Prime Maison Teriha

Fukuoka-shi,
Fukuoka

R-051

Esty Maison Higashishirakabe

Nagoya-shi, Aichi

R-052

Esty Maison Sengoku

R-053

Esty Maison Daizawa

R-054

Esty Maison Togoshi

R-055

Esty Maison Nishitemma

R-056

Esty Maison Shirokanedai

R-057

Esty Maison Higashishinjuku

R-058

Esty Maison Motoazabu

Residence

Location(Note 2)

Setagaya-ku,
Tokyo
Itabashi-ku,
TokyoFukuoka-shi,
Fukuoka
Sumida-ku,
Tokyo
Koganei-shi,Tokyo

Bunkyo-ku,
Tokyo
Setagaya-ku,
Tokyo
Shinagawa-ku,
Tokyo
Osaka-shi, Osaka
Shinagawa-ku,
TokyoShinjuku-ku,
Tokyo
Minato-ku, Tokyo

19

Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
1,762

2,320

1,530

1,750

808

971

755

957

2,435

2,960

2,296

2,910

1,182

1,500

1,733

2,160

1,918

2,210

909

1,180

608

767

1,902

2,240

1,881

2,230

3,361

3,820

6,150

7,370

1,043

1,160

830

939

1,150

1,360

1,612

1,790

1,324

1,520

2,212

2,650

1,704

2,110

1,584

1,840

2,367

3,180

1,587

2,080

1,500

1,870

Usagetype

Property
No.
(Note 1)Name ofreal estate, etc.

Location(Note 2)Meguro-ku,
TokyoShinagawa-ku,
Tokyo
Nakano-ku,
TokyoNakano-ku,
TokyoNakano-ku,
TokyoNakano-ku,
Tokyo
Suginami-ku,
Tokyo
Sumida-ku,
Tokyo

R-059

Esty Maison Toritsudaigaku

R-060

Esty Maison
Musashikoyama II

R-061

Esty Maison Nakano

R-062

Esty Maison Shinnakano

R-063

Esty Maison Nakanofujimicho

R-064

Esty Maison Tetsugakudo

R-065

Esty Maison Koenji

R-066

Esty Maison Oshiage

R-067

Esty Maison Akabane

Kita-ku, Tokyo

R-068

Esty Maison Oji

Kita-ku, Tokyo

R-069

Prime Maison Waseda

Shinjuku-ku,
Tokyo

R-070

Prime Maison Hatchobori

Chuo-ku, Tokyo

R-071

Prime Maison Jimbocho

R-072

Prime Maison
Gotenyama East

R-073

Sha Maison Stage Akihabara

R-074

Esty Maison Aoi

R-075

Esty Maison Yakuin

R-076

Esty Maison Kinshicho II

R-077

Esty Maison Ojima

Koto-ku, Tokyo

R-078

Prime Maison Fujimidai

Nagoya-shi, Aichi

R-079

Esty Maison Tsurumai

Nagoya-shi, Aichi

R-080

Prime Maison Morishita

Koto-ku, Tokyo

R-081

Prime Maison Shinagawa

R-082

Prime Maison Odorikoen

R-083

Prime Maison Minami 2-jo

R-084

Prime Maison Kamokamogawa

Residence

Chiyoda-ku,
Tokyo
Shinagawa-ku,
Tokyo
Chiyoda-ku,
Tokyo
Nagoya-shi, Aichi
Fukuoka-shi,
Fukuoka
Sumida-ku,
Tokyo

Shinagawa-ku,
Tokyo
Sapporo-shi,
Hokkaido
Sapporo-shi,
Hokkaido
Sapporo-shi,
Hokkaido

20

Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
835

1,040

984

1,190

1,798

2,110

971

1,120

948

1,120

1,096

1,290

1,122

1,380

2,370

2,900

3,208

3,700

1,548

1,890

1,483

2,040

1,360

1,740

1,843

2,280

2,857

3,610

585

636

2,325

2,630

2,534

2,780

7,821

10,7008,220

12,000

2,130

2,240

4,487

5,080

1,805

2,260

1,865

2,250

3,000

3,280

1,783

2,070

1,159

1,290

Usagetype

Property
No.
(Note 1)

R-085
R-086
R-087
R-088
R-089

Name ofreal estate, etc.

Location(Note 2)

Prime Maison
Central Park(Note 8)

Fukuoka-shi,
Fukuoka
Sumida-ku,
Sha Maison Stage Yahiro
Tokyo
Shibuya-ku,
Prime Maison Ebisu
Tokyo
Sha Maison Stage Kanazawa Kanazawa-shi,
Nishiizumi
Ishikawa
Yokkaichi-shi,
Esty Maison Unomori
Mie

R-091

Sha Maison Stage Hino

Hino-shi, Tokyo

R-092

Prime Maison
Yokohama Nihon-odori

Yokohama-shi,
Kanagawa

R-093

Kobe Women’s Student Housing

Kobe-shi, Hyogo

R-094

Prime Maison Shibuya

R-095

Prime Maison Hatsudai

R-096

Esty Maison Uemachidai

R-098
R-099
ResidencePrime Maison
Shirokane-takanawa
Prime Maison
Ichigayayamabushicho

R-100

Esty Maison Morishita

R-101

Prime Maison
Shirokanedai Tower

R-102

Prime Maison Otsuka

R-103

Prime Maison Asakusabashi

R-104

Prime Maison Daikanyama

R-105
R-106

Prime Maison
Gotenyama West
Esty Maison
Toyosu Residence(Note 9)

R-108

Esty Maison Ijiri

R-109

Prime Maison Mitatsunamachi

R-110

Prime Maison Hongo

R-111

Prime Maison Kuramae

R-112

Esty Maison Yokohamaaobadai(Note 10)

R-113

Esty Maison Shizuoka Takajo

Shibuya-ku,
TokyoShibuya-ku,
Tokyo
Osaka-shi, Osaka
Minato-ku, Tokyo
Shinjuku-ku,
Tokyo
Sumida-ku,
Tokyo
Shinagawa-ku,
TokyoToshima-ku,
Tokyo
Taito-ku, Tokyo
Meguro-ku,
TokyoShinagawa-ku,
Tokyo
Koto-ku, Tokyo
Fukuoka-shi,
FukuokaMinato-ku,
TokyoBunkyo-ku,
Tokyo
Taito-ku,
Tokyo
Yokohama-shi,
Kanagawa
Shizuoka-shi,
Shizuoka

21

Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
2,105

2,495

1,798

2,120

4,224

5,930

988

990

748

836

1,361

1,560

4,546

5,180

5,137

6,340

2,366

2,720

2,884

3,280

1,046

1,260

4,751

5,380

4,070

4,270

624

740

7,870

11,100

3,643

4,770

1,661

2,150

2,499

3,380

3,384

4,760

5,659

7,680

433

437

2,032

2,540

2,579

3,070

2,167

2,600

2,988

3,660

658

665

Usagetype

Property
No.
(Note 1)Name ofreal estate, etc.

R-114

Sha Maison Stage Hirose-dori

R-115

Esty Maison
HIGASHIBETSUIN

R-116

Esty Maison Kayaba

R-117

Esty Maison
SHIRAKABEMINAMI

R-118

Prime Maison Shimokitazawa

R-119

Prime Maison Meguro

R-120

Prime Maison Ryogoku

R-121

Prime Maison Nakameguro

R-122

Prime Maison Itabashi

R-123

Prime Maison
EGOTANOMORI(Note 11)

R-124

Prime Maison Waseda dori

Residence

Location(Note 2)

Sendai-shi,
Miyagi
Nagoya-shi,
Aichi
Nagoya-shi,
Aichi
Nagoya-shi,
Aichi
Setagaya-ku,
Tokyo
Meguro-ku,
Tokyo
Sumida-ku,
Tokyo
Meguro-ku,
TokyoItabashi-ku,
Tokyo
Nakano-ku,
TokyoShinjuku-ku,
Tokyo

Subtotal-

22

Type of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests-

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)
865

949

2,262

2,230

932

951

679

697

2,632

2,740

2,351

2,480

1,567

1,600

10,183

11,100

4,942

5,110

11,056

10,900

2,256

2,670

264,490317,384

Usagetype

Officebuilding

PropertyNo.

Name ofreal estate, etc.

Location

O-001

Garden City Shinagawa
Gotenyama

O-002

Gotenyama SH Building

Shinagawa-ku,
Tokyo
Shinagawa-ku,
Tokyo

O-003

Hommachi Minami Garden City

(Note 1)

O-004
O-005

Hommachi Garden City
(Office building portion)
HK Yodoyabashi Garden
Avenue(Note 12)(Note 2)

Osaka-shi, Osaka
Osaka-shi, Osaka
Osaka-shi, Osaka

O-006

Hirokoji Garden Avenue

Nagoya-shi, Aichi

O-007

Akasaka Garden City

Minato-ku,
Tokyo

SubtotalType of ownership

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Estimated
Book value
value at theat the end of
end of period
period(million yen)(million yen)
(Note 3)69,57088,00049,18763,50041,931

54,60035,88544,600

4,190

6,240

6,112

7,320

49,985

52,100--256,861

316,360

Osaka-shi, Osaka

Real estate trust
beneficiary interests

16,636

16,800Subtotal--

16,636

16,800

Total

-

-

537,989

650,544

H-001
Hotel

Hommachi Garden City
(Hotel portion)(Note 1) "Property No." is classified by use of properties held by SHR, whereby each property is given a number and any of thefollowing letters: R representing residences, O representing office buildings, and H representing hotels, respectively.
(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) “Appraisal value at the end of period” refers to the value stated in each real estate appraisal report (with the end of April
as the appraisal date) for each fiscal period ended April, and the value stated in each real estate appraisal report (with the endof October as the appraisal date) or the survey value stated in each real estate survey value report (with the end of October as
the survey date) 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.
(Note 4) For Esty Maison Gotanda, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest topart of the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site:
387,036/426,933 (or approximately 90.7%)).
(Note 5) For Esty Maison Musashikoyama, 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:
117,678/127,609 (or approximately 92.2%)).
(Note 6) For Esty Maison Sendagi, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest topart of the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site:
89,730/103,842 (or approximately 86.4%)).
(Note 7) Sha Maison Stage Hakata 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 50 years from December 1, 2002.
(Note 8) Part of the land of Prime Maison Central Park (lot number: 23-32) is a leased land, while the building (store) on the leased
land is owned by the lessee.
(Note 9) Esty Maison Toyosu Residence is a property on a leased land owned by the Urban Renaissance Agency and for which ageneral fixed-term leasehold right is established with a lease term of 65 years from March 17, 2006.
(Note 10) 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 11) Prime Maison EGOTANOMORI is a property on a leased land owned by the Urban Renaissance Agency and for which ageneral fixed-term leaseholdright is established with a lease term of 70 years from April 24, 2015.
(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%)).

23

The following table sets forth the change in status of leasing of real estate, etc. owned by SHR.
16th fiscal period
From: May 1, 2022 To: Oct. 31, 2022

Usage
type

Property
Name ofNo.
real estate, etc.

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

R-012
R-013
R-014
R-015
R-016
R-017
R-018
R-019
R-021
R-022
R-023

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
Kawasaki II
Esty Maison
Azabujuban
Esty Maison
Itabashihoncho

17th fiscal period
From: Nov. 1, 2022 To: Apr. 30, 2023
Property-related
Property-related
operatingTotal Occupancy operating Ratio toTotal Occupancy
Ratio torevenuenumber ofrate
revenueTotal
number of
rate
Total
fiscaltenants [at the end [during
Property-related tenants [at the end
Property-related[during[at the end of fiscal
fiscaloperating [at the end of fiscal
operatingfiscalof fiscal
period]period]revenueof fiscal
period]revenueperiod]period](%)(million(%)
period](%)(%)(million(Note 1) (Note 2)yen)(Note 4) (Note 1) (Note 2)(Note 4)yen)
(Note 3)(Note 3)
1

97.3

181

1.2

1

95.1

176

1.1

1

95.6

46

0.3

1

95.5

49

0.3

1

92.8

56

0.4

1

89.4

55

0.4

1

100.0

23

0.2

1

96.1

24

0.2

1

92.2

44

0.3

1

94.2

45

0.3

1

95.3

44

0.3

1

97.6

48

0.3

1

96.4

63

0.4

1

98.6

67

0.4

1

96.8

77

0.5

1

98.0

76

0.5

1

99.0

52

0.3

1

98.9

54

0.4

1

91.8

29

0.2

1

95.0

30

0.2

1

95.0

52

0.3

1

97.3

52

0.3

1

98.9

88

0.6

1

96.3

89

0.6

1

94.7

29

0.2

1

98.3

30

0.2

1

100.0

34

0.2

1

97.2

34

0.2

1

96.4

95

0.6

1

95.8

95

0.6

1

94.7

78

0.5

1

97.9

79

0.5

1

91.7

63

0.4

1

97.5

62

0.4

1

86.5

31

0.2

1

96.2

30

0.2

1

96.7

64

0.4

1

99.3

64

0.4

1

97.4

65

0.4

1

97.5

65

0.4

1

95.4

28

0.2

1

98.4

30

0.2

24

Usagetype

Property
Name ofNo.
real estate, etc.

R-027
R-028
R-030
R-033
R-034
R-035
R-036
R-037
R-038
R-039
R-040
Residence R-041
R-042
R-043
R-044
R-045
R-046
R-047
R-048
R-049
R-050
R-051
R-052

Esty Maison
Musashikoyama
Esty Maison
Sendagi
Esty Maison
Hakatahigashi
Prime Maison
Musashinonomori
Prime Maison
Higashisakura
Prime Maison
Kayabakoen
Esty Maison
Sangenjaya II
Esty Maison
Itabashi C6
Sha Maison
Stage 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

16th fiscal period
17th fiscal period
From: May 1, 2022 To: Oct. 31, 2022
From: Nov. 1, 2022 To: Apr. 30, 2023
Property-related
Property-related
operatingoperatingTotal Occupancy revenue
Ratio toTotal Occupancy
Ratio torevenuenumber of
rate[during
Total
number of
rate
Total
fiscaltenants [at the end
fiscal Property-related tenants [at the end
Property-related[during[at the end of fiscal
period] operating [at the end of fiscal
operatingfiscalof fiscal
period](millionrevenueof fiscal
period]revenueperiod]period]
(%)
yen)
(%)
period](%)(%)(million(Note 1) (Note 2) (Note 3) (Note 4) (Note 1) (Note 2)(Note 4)yen)
(Note 3)
1

98.3

29

0.2

1

100.0

31

0.2

1

100.0

22

0.1

1

100.0

23

0.2

1

99.0

87

0.6

1

98.6

87

0.6

1

93.5

64

0.4

1

97.9

65

0.4

1

97.8

52

0.3

1

96.3

53

0.3

1

100.0

30

0.2

1

96.5

30

0.2

1

92.1

23

0.2

1

97.0

24

0.2

1

92.4

79

0.5

1

97.6

77

0.5

1

100.0

96

0.6

1

100.0

96

0.6

1

97.2

35

0.2

1

97.2

35

0.2

1

95.1

54

0.4

1

96.1

56

0.4

1

98.3

63

0.4

1

92.5

65

0.4

1

96.4

30

0.2

1

96.4

30

0.2

1

96.1

22

0.2

1

100.0

23

0.2

1

100.0

69

0.5

1

100.0

69

0.5

1

96.2

55

0.4

1

93.7

56

0.4

1

95.4

90

0.6

1

98.1

91

0.6

1

93.5

173

1.2

1

100.0

179

1.2

1

100.0

34

0.2

1

92.7

32

0.2

1

100.0

29

0.2

1

96.2

28

0.2

1

100.0

52

0.3

1

100.0

53

0.3

1

100.0

46

0.3

1

100.0

46

0.3

1

95.6

37

0.2

1

98.4

38

0.3

25

Usagetype

Property
Name ofNo.
real estate, etc.

R-053
R-054
R-055
R-056
R-057
R-058
R-059
R-060
R-061
R-062
R-063
Residence

R-064
R-065
R-066
R-067

Esty Maison
Daizawa
Esty Maison
Togoshi
Esty Maison
Nishitemma
Esty Maison
Shirokanedai
Esty Maison
Higashishinjuku
Esty Maison
Motoazabu
Esty Maison
Toritsudaigaku
Esty Maison
Musashikoyama
II
Esty Maison
NakanoEsty Maison
Shinnakano
Esty Maison
Nakanofujimicho
Esty Maison
Tetsugakudo
Esty Maison
KoenjiEsty Maison
Oshiage
Esty Maison
AkabaneR-068 Esty Maison Oji
R-069
R-070
R-071
R-072
R-073

Prime Maison
WasedaPrime Maison
Hatchobori
Prime Maison
JimbochoPrime Maison
Gotenyama East
Sha Maison
Stage Akihabara

R-074 Esty Maison Aoi
R-075

Esty Maison
Yakuin16th fiscal period
17th fiscal period
From: May 1, 2022 To: Oct. 31, 2022
From: Nov. 1, 2022 To: Apr. 30, 2023
Property-related
Property-related
operatingoperatingTotal Occupancy revenue
Ratio toTotal Occupancy
Ratio torevenuenumber of
rate[during
Total
number of
rate
Total
fiscaltenants [at the end
fiscal Property-related tenants [at the end
Property-related[during[at the end of fiscal
period] operating [at the end of fiscal
operatingfiscalof fiscal
period](millionrevenueof fiscal
period]revenueperiod]period]
(%)
yen)
(%)
period](%)(%)(million(Note 1) (Note 2) (Note 3) (Note 4) (Note 1) (Note 2)(Note 4)yen)
(Note 3)
1

97.7

63

0.4

1

98.8

61

0.4

1

98.8

49

0.3

1

100.0

51

0.3

1

96.9

51

0.3

1

94.5

50

0.3

1

92.5

73

0.5

1

91.4

73

0.5

1

96.3

47

0.3

1

94.2

48

0.3

1

100.0

41

0.3

1

100.0

43

0.3

1

100.0

23

0.2

1

100.0

24

0.2

1

95.2

30

0.2

1

97.4

30

0.2

1

98.9

53

0.4

1

93.9

54

0.4

1

96.1

28

0.2

1

100.0

28

0.2

1

93.2

28

0.2

1

100.0

28

0.2

1

95.2

34

0.2

1

100.0

35

0.2

1

100.0

34

0.2

1

96.4

35

0.2

1

95.0

70

0.5

1

98.0

73

0.5

1

99.4

94

0.6

1

98.2

99

0.6

1

97.7

48

0.3

1

97.8

49

0.3

1

97.6

45

0.3

1

97.0

46

0.3

1

88.8

36

0.2

1

90.6

36

0.2

1

100.0

53

0.4

1

97.3

54

0.4

1

100.0

83

0.6

1

100.0

88

0.6

1

100.0

15

0.1

1

100.0

15

0.1

1

96.3

71

0.5

1

96.5

70

0.5

1

95.0

74

0.5

1

99.3

75

0.5

26

Usagetype

Property
Name ofNo.
real estate, etc.

R-076
R-077
R-078
R-079
R-080
R-081
R-082
R-083
R-084
R-085
R-086
Residence

R-087

R-088

R-089
R-091
R-092
R-093
R-094
R-095
R-096
R-098
R-099

Esty Maison
Kinshicho II
Esty Maison
Ojima
Prime Maison
Fujimidai
Esty
MaisonTsurumaiPrime Maison
Morishita
Prime Maison
ShinagawaPrime Maison
Odorikoen
Prime Maison
Minami 2-joPrime Maison
Kamokamogawa
Prime Maison
Central Park
Sha Maison
Stage Yahiro
Prime Maison
Ebisu
Sha Maison
Stage
Kanazawa
Nishiizumi
Esty Maison
Unomori
Sha Maison
Stage Hino
Prime Maison
Yokohama
Nihon-odori
Kobe Women’sStudent Housing
Prime Maison
ShibuyaPrime Maison
Hatsudai
Esty Maison
Uemachidai
Prime Maison
Shirokane-takanawa
Prime Maison
Ichigayayamabushicho

16th fiscal period
17th fiscal period
From: May 1, 2022 To: Oct. 31, 2022
From: Nov. 1, 2022 To: Apr. 30, 2023
Property-related
Property-related
operatingoperatingTotal Occupancy revenue
Ratio toTotal Occupancy
Ratio torevenuenumber of
rate[during
Total
number of
rate
Total
fiscaltenants [at the end
fiscal Property-related tenants [at the end
Property-related[during[at the end of fiscal
period] operating [at the end of fiscal
operatingfiscalof fiscal
period](millionrevenueof fiscal
period]revenueperiod]period]
(%)
yen)
(%)
period](%)(%)(million(Note 1) (Note 2) (Note 3) (Note 4) (Note 1) (Note 2)(Note 4)yen)
(Note 3)
1

99.1

228

1.5

1

97.7

230

1.5

1

95.9

247

1.6

1

98.7

257

1.7

1

88.7

72

0.5

1

92.0

69

0.5

1

100.0

155

1.0

1

100.0

156

1.0

1

97.7

53

0.4

1

98.9

56

0.4

1

100.0

58

0.4

1

95.5

59

0.4

1

90.1

109

0.7

1

92.4

115

0.8

1

98.5

75

0.5

1

97.7

75

0.5

1

98.2

48

0.3

1

97.3

51

0.3

1

96.6

87

0.6

1

99.4

90

0.6

1

100.0

56

0.4

1

100.0

56

0.4

1

98.6

112

0.7

1

100.0

114

0.7

1

100.0

43

0.3

1

100.0

40

0.3

1

100.0

27

0.2

1

100.0

27

0.2

1

98.1

51

0.3

1

98.1

49

0.3

1

98.2

141

0.9

1

95.9

142

0.9

1

98.9

219

1.5

1

100.0

219

1.4

1

94.8

63

0.4

1

91.5

64

0.4

1

98.2

80

0.5

1

95.1

82

0.5

1

100.0

33

0.2

1

94.7

33

0.2

1

95.6

115

0.8

1

90.3

113

0.7

1

93.0

99

0.7

1

91.6

101

0.7

27

Usagetype

Property
Name ofNo.
real estate, etc.

R-100
R-101
R-102
R-103
R-104
R-105
R-106

Esty Maison
Morishita
Prime Maison
Shirokanedai
Tower
Prime Maison
OtsukaPrime Maison
Asakusabashi
Prime Maison
Daikanyama
Prime Maison
Gotenyama West
Esty Maison
ToyosuResidence

R-108 Esty Maison Ijiri
R-109
R-110
Residence R-111
R-112
R-113
R-114
R-115
R-116
R-117
R-118
R-119
R-120
R-121

Prime Maison
Mitatsunamachi
Prime Maison
Hongo
Prime Maison
Kuramae
Esty Maison
Yokohama-aobadai
Esty Maison
Shizuoka Takajo
Sha Maison
StageHirose-dori
Esty Maison
HIGASHIBETSU
IN
Esty Maison
KayabaEsty Maison
SHIRAKABE
MINAMI
Prime Maison
Shimokitazawa
Prime Maison
MeguroPrime Maison
Ryogoku
Prime
MaisonNakameguro

16th fiscal period
17th fiscal period
From: May 1, 2022 To: Oct. 31, 2022
From: Nov. 1, 2022 To: Apr. 30, 2023
Property-related
Property-related
operatingoperatingTotal Occupancy revenue
Ratio toTotal Occupancy
Ratio torevenuenumber of
rate[during
Total
number of
rate
Total
fiscaltenants [at the end
fiscal Property-related tenants [at the end
Property-related[during[at the end of fiscal
period] operating [at the end of fiscal
operatingfiscalof fiscal
period](millionrevenueof fiscal
period]revenueperiod]period]
(%)
yen)
(%)
period](%)(%)(million(Note 1) (Note 2) (Note 3) (Note 4) (Note 1) (Note 2)(Note 4)yen)
(Note 3)
1

100.0

19

0.1

1

96.6

20

0.1

1

95.2

234

1.6

1

94.7

235

1.5

1

92.4

110

0.7

1

95.1

113

0.7

1

97.5

49

0.3

1

88.9

50

0.3

1

97.4

70

0.5

1

97.2

73

0.5

1

95.9

123

0.8

1

85.3

116

0.8

1

96.8

472

3.1

1

97.4

483

3.1

1

100.0

13

0.1

1

100.0

13

0.1

1

90.6

59

0.4

1

100.0

56

0.4

1

100.0

67

0.4

1

90.9

69

0.5

1

97.7

60

0.4

1

85.5

61

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

69

0.5

1

100.0

69

0.5

1

100.0

29

0.2

1

96.2

29

0.2

1

100.0

20

0.1

1

100.0

20

0.1

1

94.3

55

0.4

1

100.0

59

0.4

1

100.0

48

0.3

1

100.0

48

0.3

1

86.6

34

0.2

1

100.0

33

0.2

1

96.8

221

1.5

1

97.0

221

1.4

28

Usagetype

Property
Name ofNo.
real estate, etc.

Prime Maison
ItabashiPrime Maison
R-123 EGOTANOMOR
ResidenceI
Prime Maison
R-124
Waseda dori
R-122

1

95.8

113

0.8

1

95.6

117

0.8

1

97.4

290

1.9

1

97.3

609

4.0

1

97.8

25

0.2

1

93.7

55

0.4

12

97.1

8,197

54.3

12

97.2

8,642

56.3

1

84.5

1,650

10.9

1

84.5

1,633

10.6

1

100.0

1,088

7.2

1

100.0

1,088

7.1

1

100.0

1,322

8.8

1

100.0

1,311

8.5

1

100.0

903

6.0

1

100.0

903

5.9

1

100.0

168

1.1

1

100.0

167

1.1

1

100.0

211

1.4

1

100.0

208

1.4

1

89.4

1,028

6.8

1

87.4

999

6.5

4

93.9

6,374

42.3

4

93.6

6,313

41.1

1

100.0

402

2.7

1

100.0

402

2.6

－

－

109

0.7

－

－

－

－

Subtotal

1

100.0

511

3.4

1

100.0

402

2.6

Total

16

96.4

15,082

100.0

16

96.5

15,358100.0

Subtotal

Officebuilding

Garden City
O-001 Shinagawa
Gotenyama
Gotenyama SH
O-002
Building
HommachiO-003 Minami Garden
City
Hommachi
Garden City
O-004
(Office building
portion)HK
O-005 Yodoyabashi
Garden Avenue
Hirokoji Garden
O-006
AvenueAkasaka Garden
O-007
City
SubtotalHotel

16th fiscal period
17th fiscal period
From: May 1, 2022 To: Oct. 31, 2022
From: Nov. 1, 2022 To: Apr. 30, 2023
Property-related
Property-related
operatingoperatingTotal Occupancy revenue
Ratio toTotal Occupancy
Ratio torevenuenumber of
rate[during
Total
number of
rate
Total
fiscaltenants [at the end
fiscal Property-related tenants [at the end
Property-related[during[at the end of fiscal
period] operating [at the end of fiscal
operatingfiscalof fiscal
period](millionrevenueof fiscal
period]revenueperiod]period]
(%)
yen)
(%)
period](%)(%)(million(Note 1) (Note 2) (Note 3) (Note 4) (Note 1) (Note 2)(Note 4)yen)
(Note 3)

HommachiH-001 Garden City
(Hotel portion)
The RitzH-002
Carlton, Kyoto

29

(Note 1) “Total number of tenants” refers to the sum total of the number of tenants under, and indicated in, the respective leaseagreements 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 the end of each fiscal period has been concluded for the property, the number of lessees under the master leaseagreement). In the “Subtotal” and “Total” columns, however, a tenant that leases spaces in multiple properties iscounted as one. Furthermore, of the office 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 20, respectively as ofthe end of the 16th fiscal period (from May 1, 2022 to Oct. 31, 2022) and 17, 16, 8, 7 and 18, respectively as of the end of
the 17th fiscal period (from Nov, 1, 2022 to Apr. 30, 2023).
(Note 2) “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 ofleased 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 in the “Total” column is the ratio of the 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. Both figures have been rounded to thenearest first decimal place.
(Note 3) “Property-related operating revenue [during fiscal period]” indicates the property-related operating revenue of each
property for each fiscal period, rounded down to the nearest million yen.
(Note 4) Figures under the heading “As a percentage of total property-related operating revenue” indicate the ratio of
property-related operating revenue of each property for each fiscal period or the subtotal of property-related operating
revenue of each property classified by usage type for each fiscal period to total property-related operating revenue of each
property for each fiscal period, rounded to the nearest first decimal place.
(Note 5) SHR disposed “The Ritz-Carlton, Kyoto” on August 2, 2022. Accordingly, “Property-related operating revenue[during fiscal period]” and “As a percentage of total property-related operating revenue” for the property in the abovetable indicate the figures for the duration SHR owned them in the 16th fiscal period (from May 1, 2022 to Oct. 31, 2022).

30

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
The following are the details for investment securities as of the end of the fiscal period under review.
Valuation

Book value
Asset name

Asset type

Quantity(Note1)

Unit
price

Price
(thousand yen)

Unit
price

Price
(thousand yen)

Valuation
gain or loss
(thousand yen)

Remarks

Silent partnership equity
interests with Godo Silent partnership
Kaisha Gemini1 as the equity interests
operator－－

463,402－463,402－(Note 2)

Silent partnership equity
interests with Godo Silent partnership
Kaisha Gemini2 as the equity interests
operator－－

221,507－

221,507－(Note 3)－－－684,910－

684,910

－

－

Total

(Note 1) “Valuation” is the book value.
(Note 2) The underlying asset refers to 34.55% quasi co-ownership interest of the trust beneficiary interest in real estate regarding thecompartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor underground through 4th
floor above ground and 11th floor through 19th floor above ground of the “Akasaka Garden City” building, as well as
the accompanying right of site (ratio of right of site: 662,768/1,000,000 (or approximately 66.3%)), which has not yet beenacquired by SHR.
(Note 3) The underlying asset refers to the trust beneficiary interest in real estate of the "Ningyocho PREX".

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

Category

Type

Transaction other thanmarket transaction

Interest rate swap transaction(Under which floating interest rates are receivableand fixed interest rates are payable)

6,650,000－(7,099)Transaction other thanmarket transaction

Interest rate swap transaction(Under which floating interest rates are receivableand fixed interest rates are payable)

115,961,000

96,951,000－(Note 3)

122,611,000

96,951,000(7,099)Total(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.

31

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” and “6. Details of Investment Securities” 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. andinfrastructure 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.

32Capital Expenditures for Property
1. Scheduled Capital Expenditures
The principal capital expenditures associated with renovation work, etc. currently planned for properties owned
by SHR are as follows. Please note that some of the planned construction costs may be classified as expenses
for accounting purposes.
Planned Construction Costs(million yen) (Note)
Name of real estate, etc.
(location)

PurposePlanned period
Total

Payment for current Amount alreadyfiscal period
paidPrime Maison Central Park
From: November 2023
(Kashii, Teriha, Higashi-ku,
Large-scale repairs
249－－
To: April 2024
Fukuoka-shi, Fukuoka)
Hommachi Garden City (Officebuilding portion)
From: November 2023
LED lighting repairs
150－－(Hommachi, Chuo-ku, Osaka-shi,
To: April 2024
Osaka)
Prime Maison Musashinonomori
From: June 2023
Large-scale repairs
117－－(Josuihoncho, Kodaira-shi, Tokyo)
To: October 2023
Sha Maison Stage Hirose-dori
From: May 2023
(Tachimachi, Aoba-ku, Sendai-shi,
Large-scale repairs
96－－
To: October 2023
Miyagi)
Garden City Shinagawa Gotenyama
From: November 2023
(Kitashinagawa, Shinagawa-ku,
LED lighting repairs
89－－
To: December 2023
Tokyo)
Esty Maison Nakano
From: May 2023
Large-scale repairs
66－－(Chuo, Nakano-ku, Tokyo)
To: October 2023
Esty Maison Shizuoka Takajo
From: November 2023
(Takajo, Aoi-ku, Shizuoka-shi,
Large-scale repairs
64－－
To: April 2024
Shizuoka)(Note) "Planned Construction Costs" refers to the amount obtained by multiplying the total cost required for construction by the
proportion of ownership or quasi co-ownership interest in the compartmentalized ownership held by SHR (if SHR owns aquasi co-ownership interest in the real estate trust beneficiary interest with compartmentalized ownership as trust property, thetotal cost is multiplied by the ownership ratio of the compartmentalized ownership, and then the quasi co-ownership amount ismultiplied by percentage), if SHR owns the sectional ownership or the quasi co-ownership interest in the real estate trust
beneficiary right of the property subject to the construction.

2. Capital Expenditures During the Period
An overview of capital expenditures for properties owned by SHR during the fiscal period under review is asfollows. In addition, the total capital expenditure for the current fiscal period was 896 million yen, and a totalof 1,289 million yen of construction work was carried out, including repair expenses of 392 million yenclassified as expenses for the current fiscal period.
Name of real estate, etc.
(location)
Prime Maison Yuhigaoka(Ueshio, Tennoji-ku, Osaka-shi, Osaka)
Sha Maison Stage Hino
(Shinmachi, Hino-shi, Tokyo)
Esty Maison Akabane(Akabane, Kita-ku, Tokyo)
Esty Maison Ijiri(Ijiri, Minami-ku, Fukuoka-shi, Fukuoka)

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

PeriodFrom: November 2022
To: March 2023
From: November 2022
To: March 2023
From: November 2022
To: April 2023
From: November 2022
To: March 2023

Payment amount(million yen)
52
84
136
47

Other capital expenditures

576

Total

896

33

3. 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 inorder to secure expenses for repair works expected in the future, is not included in the cash reserves.

34

Condition of Expenses and Debts
1. Details of Expenses Pertaining to Management, etc.
Item

(Unit: thousand yen)
17th fiscal period
From: Nov. 1, 2022
To: Apr. 30, 2023

16th fiscal period
From: May 1, 2022
To: Oct. 31, 2022

Asset management fee

1,021,403

943,182

Asset custody fee

10,67910,571

Administrative service fees

49,97449,386

Directors’compensations

3,600

3,600

356,800

307,726

1,442,457

1,314,467

Other expenses
Total(Note)In addition to the amounts shown above, the “Asset management fee” contains the asset management fees of 1,440
thousand yen for the 16th fiscal period and 660 thousand yen for the 17th fiscal period which were included in the book valueof the silent partnership equity interest.

35

Condition of Investment Transactions
1. 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)

Silent partnership equity interests
with Godo Kaisha Gemini2 as theoperator
Total(Note)

Disposition
Gain (Loss)
price
Book value
on sale(million yen) (million yen)(millionyen)(Note)March 29, 2023

220

―

―

―

―

―

220

―

―

―

―

“Acquisition price” and “Disposition price” indicate the transaction prices shown in the sales and purchase agreements
for respective owned properties (excluding consumption tax, local consumption tax and miscellaneous expenses includingtransaction fees), rounded down to the nearest million yen. The same applies hereinafter.

2. Status, etc. in Respect of Sale and Purchase of Other Assets
Not applicable.
Main assets other than the abovementioned real estate, etc., asset-backed securities, etc., infrastructure assets,etc. and infrastructure-related assets are essentially bank deposits or bank deposits within assets in trust.

3. Investigation into Value, etc. of Specified Assets(1) Real Estate, etc. (Appraisal)
Not applicable.
(2) Silent Partnership Equity Interests
Acquisition
or
Disposition

Stock name

Transaction date

Acquisition price(million yen)

Acquisition

Silent partnership equity interests with
Godo Kaisha Gemini2 as the operator

March 29, 2023

220

(Note)

Appraisal value(million yen)

220

Regarding transactions that require an investigation into the price, etc. of specified assets in accordance with Article 201,
Paragraph 2 of the Investment Trust Act (1 acquisition transaction of the Silent partnership equity interests), Akasaka Limited
Liability Audit Corporation conducts an investigation based on the “Practical Guidelines on the Agreed Procedures for
Investigating the Price, etc. of Specialized Assets in Investment Trusts and Investment Corporations” in Guideline 4460
published by the Japan Certified Public Accountants Association. SHR has been notified of the results of the investigation.

(3) Others
Not applicable.

36

4. Status of Transactions with Interested Persons, etc.(Note 1)(1) Status of Transactions
Not applicable.
(2) Amount of Commission Fee, etc.

Category

Management fee(Note 2)

Total amount ofcommission fee,
etc. (A)(thousand yen)

1,095,551

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.

512,453

46.8

Sekisui House Real Estate Chubu, Ltd.

69,635

6.4

Sekisui House GM Partners, Ltd.

49,622

4.5

Sekisui House, Ltd.

26,400

2.4

Sekisui House Real Estate Kyushu, Ltd.

18,606

1.7

Sekisui House Real Estate Kansai, Ltd.

3,435

0.3

Sekisui House Real Estate Tohoku, Ltd.

1,050

0.1

(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 and 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.
Sekisui House Real Estate Tokyo, Ltd
330,984 thousand yen
Sekisui House Real Estate Chubu, Ltd.
91,507 thousand yen
Sekisui House Real Estate Kyushu, Ltd.
39,061 thousand yen
Sekisui House GM Partners, Ltd.
29,298 thousand yen
Sekiwa Total Support Co., ltd.
26,191 thousand yen
Sekisui House Real Estate Kansai, Ltd.
2,819 thousand yen
Sekisui House Real Estate Tohoku, Ltd.
1,378 thousand yen

5. Status, etc. of Transactions with the Asset Management Company Pertaining to Business
Operations of Concurrent 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 notconcurrently 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.

37

Other Information
1. Notice(1) Meeting of the Board of Directors of the Investment Corporation
The major agreements and changes approved by the Board of Directors of the SHR during the fiscal year underreview are outlined below.
Approval dateFeb. 27, 2023

Item

OutlineEntrustment of General Affairs Pertaining toIssuance of Investment Corporation Bonds

With regard to the entrustment of general affairs such as
office work related to the issuance of investment corporation
bonds, the candidate companies were approved and decisions
on other necessary matters were left to the executive officers.

(2) Fraction of Amounts and Ratios
In this document, unless otherwise stated, figures are rounded down to the nearest whole number, and ratios arerounded off.

38

1. Financial Statements(1) Balance Sheet(Thousand yen)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Income taxes refund 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
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
Investment securities
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

39

16th Fiscal Period(As of October 31, 2022)

17th Fiscal Period(As of April 30, 2023)

11,416,266
16,340,838
198,066－
300,452
58,286(2,653)28,311,256

10,950,123
16,451,343
190,5201,243
308,728
170,352(2,791)
28,069,520

184,641,536(23,440,710)
161,200,826

185,350,612(25,844,317)
159,506,295

1,620,073(333,254)
1,286,818
2,387,047(433,368)
1,953,678
870,024(276,299)
593,724
368,656,815
17,859533,709,723

1,623,170(365,798)
1,257,371
2,419,653(490,235)
1,929,418
1,015,435(355,857)
659,578368,656,815－
532,009,479

6,034,763
3,622
6,038,385

5,979,645
8,095
5,987,741

486,179
1,530,346
625,332
157,179
2,799,038
542,547,147

684,9101,530,346
643,969
159,804
3,019,030
541,016,251

107,395
33,602140,997
570,999,401

94,19625,201
119,398569,205,170

(Thousand yen)
16th Fiscal Period(As of October 31, 2022)

17th Fiscal Period(As of April 30, 2023)

1,116,383
7,700,000－
31,310,000
1,169,452
217,054584
678,924
712,064
10,052
12,75842,927,275

923,839－3,000,000
40,050,000
1,082,585
249,713－－692,786
7,099
8,932
46,014,955

31,500,000
187,732,000

28,500,000
186,692,000

14,353,152
2,149
233,587,302
276,514,577

14,380,909－
229,572,909
275,587,864

161,283,304

161,283,304

128,598,415(3,999,964)
124,598,450

128,598,415(3,999,964)
124,598,450

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Derivatives liabilities
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Derivatives liabilities
Total non-current liabilities
Total liabilities
Net assets
Unitholders’equity
Unitholders’capital
SurplusCapital surplus
Deduction from capital surplus
Capital surplus, net
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
Total liabilities and net assets

*3

*4

*1

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

40

993,722417,038
1,410,761
7,204,510
133,213,722
294,497,026(12,202)(12,202)294,484,824
570,999,401

*3

*4

*1

911,281
194,129
1,105,411
6,637,238
132,341,100
293,624,405(7,099)(7,099)293,617,306
569,205,170

(2) Statement of Income and Retained Earnings(Thousand yen)
16th Fiscal Period(From May 1, 2022
to October 31, 2022)
Operating revenue
Rent revenue – real estate
Other lease business revenue
Gain on sale of real estate properties
Gain on investments in silent partnership
Total operating revenue
Operating expenses
Expenses related to rent business
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
Interest on refund
Settlement money from sale of real estate properties
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.

41

17th Fiscal Period(From November 1, 2022
to April 30, 2023)

*1
*1
*2

14,623,738
459,098
710,583
3,650
15,797,070*1*1

14,908,879
449,239－
7,818
15,365,937*1

6,275,960
1,021,403
10,67949,9743,600
1,693
355,107
7,718,418*1

6,543,453
943,182
10,571
49,3863,600
540
307,1857,857,920

8,078,652

7,508,017

131
588
539
－
1,258

135
768
－
1,005
1,909

639,740
76,266
122,424
15,502
13,8607,001
874,796
7,205,115
7,205,115605
605
7,204,510
7,204,510

646,240
73,855
126,993
8,400
13,1983,394
872,083
6,637,843
6,637,843
605
605
6,637,238
6,637,238

(3) Statement of Changes in Net Assets
16th Fiscal Period (From May 1, 2022 to October 31, 2022)(Thousand yen)
Unitholders’equity
SurplusCapital surplus

Voluntary reserve
Reserve forUnitholders’
Reserve for
Deduction
Reservefor
specialcapitalCapitalCapitaltemporaryfrom capital
reduction account forsurplussurplus, netdifference
surplusentry
reduction
adjustments
entry
161,283,304 128,598,415－ 128,598,415
388,798
1,195,848
604,535

Balance at beginning of period
Changes of items during period
Reversal of reserve for special(1,195,848)
account for reduction entry
Provision of reserve for
1,195,848
reduction entry
Reversal of reserve for(590,923)
reduction entry
Reversal of reserve fortemporary difference(187,497)
adjustments
Distribution from surplus
Net income
Acquisition of own investment
units
Cancellation of own(3,999,964) (3,999,964)
investment units
Net changes of items otherthan unitholders’equity
Total changes of items during－－ (3,999,964) (3,999,964) 604,924 (1,195,848) (187,497)
periodBalance at end of period*1 161,283,304 128,598,415 (3,999,964) 124,598,450
993,722－417,038

42

Unitholders’equity

Balance at beginning of period
Changes of items during period
Reversal of reserve for special
account for reduction entry
Provision of reserve for
reduction entry
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments
Distribution from surplus
Net income
Acquisition of own investment
units
Cancellation of own
investment units
Net changes of items otherthan unitholders’equity
Total changes of items during
periodBalance at end of period

Balance at beginning of period
Changes of items during period
Reversal of reserve for special
account for reduction entry
Provision of reserve for
reduction entry
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments
Distribution from surplus
Net income
Acquisition of own investment
units
Cancellation of own
investment units
Net changes of items otherthan unitholders’equity
Total changes of items during
periodBalance at end of period

Surplus
Voluntary
Unappropriatedreserve
Total
retained
Total voluntary
surplusearnings
reserve
2,189,182
6,745,643 137,533,240

Own
investment
units－(Thousand yen)
Valuation andtranslation adjustments
Total
DeferredTotalvaluation
gains
unitholders’andor losses
equitytranslation
on hedges
adjustments
298,816,545 (33,897)(33,897)(1,195,848)

1,195,848－－

1,195,848(1,195,848)－－(590,923)

590,923－－(187,497)

187,497－－(7,524,063)
7,204,510(7,524,063)
7,204,510(7,524,063)
7,204,510(3,999,964)(3,999,964)(3,999,964)

3,999,964－
21,695

21,695(778,420)

458,867(4,319,518)－(4,319,518)

21,695

21,6951,410,761

7,204,510

133,213,722－

294,497,026(12,202)(12,202)

Total
net assets
298,782,647－－－－(7,524,063)
7,204,510(3,999,964)－
21,695(4,297,823)
294,484,824

43

17th Fiscal Period (From November 1, 2022 to April 30, 2023)(Thousand yen)
Unitholders' equity
SurplusCapital surplus
Unitholders’capitalBalance at beginning of period

161,283,304

Capitalsurplus

Deductionfrom capitalsurplusCapitalsurplus, net

128,598,415(3,999,964)

124,598,450

Changes of items during period
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments
Distribution from surplus
Net income
Net changes of items other thanunitholders' equity
Total changes of items during
periodBalance at end of period

Voluntary reserve
Reserve forReserve for
Total
temporary
reduction
voluntarydifference
entry
reserveadjustments
993,722417,038
1,410,761(82,441)(82,441)(222,908)(222,908)

－

－

－

－

(82,441)(222,908)(305,349)*1 161,283,304

128,598,415(3,999,964)

124,598,450

911,281

194,129

1,105,411(Thousand yen)
Unitholders' equity

Balance at beginning of period
Changes of items during period
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments
Distribution from surplus
Net income
Net changes of items otherthan unitholders' equity
Total changes of items during
periodBalance at end of period

Valuation and translation adjustments
Totalunitholders’equity82,441－－－

222,908－－－(7,509,860)(7,509,860)(7,509,860)(7,509,860)

6,637,238

6,637,238

6,637,238

6,637,238

294,497,026

Deferred gains Total valuation andor losses
translation
on hedges
adjustments

Total
net assets

Surplus
UnappropriatedTotal
retained earnings
surplus7,204,510
133,213,722(12,202)(12,202)294,484,824

5,103

5,103

5,103

(567,271)(872,621)(872,621)

5,103

5,103

(867,518)

6,637,238

132,341,100

293,624,405(7,099)(7,099)293,617,306

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

44

(4) Statement of Cash Distributions
Item
Ⅰ. Unappropriated retained earnings
Ⅱ. Reversal of voluntary reserve
Reversal of reserve for reduction entry
Reversal of reserve for temporary difference
adjustments
Ⅲ Amount added to distributions in excess of earnings
Allowance for temporary difference adjustments
Ⅳ. Cash distributions[Cash distributions per unit]
Of which, distributions of earnings[Of which, distributions of earnings per unit]
Of which, allowance for temporary difference
adjustments[Of which, distributions in excess of earnings per unit
[associated with the allowance for temporary
difference adjustments]]
Ⅴ. Retained earnings carried forward
Method for calculating cash distributions

16th Fiscal Period(From May 1, 2022,
to October 31, 2022)
7,204,510,234 yen

17th Fiscal Period(From November 1, 2022,
to April 30, 2023)
6,637,238,451 yen

82,441,009 yen

911,281,820 yen*1

222,908,905 yen*1

194,129,553 yen－ yen
7,509,860,148 yen[1,714 yen]
－ yen[－ yen]*2

70,103,712 yen
7,803,419,442 yen[1,781 yen]
7,733,315,730 yen[1,765 yen]

－ yen

*2

70,103,712 yen[－ yen][16 yen]－ yen
The basic policy is to distribute inexcess of an amount equivalent to
90% of the amount 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 ofIncorporation of SHR.

9,334,094 yen
The basic policy is to distribute inexcess of an amount equivalent to
90% of the amount 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 ofIncorporation of SHR.

Based on such policy, SHR
decided to distribute7,509,860,148yen, which is
obtained by adding a reversal of
the reserve for temporary
difference adjustments(222,908,905yen) and a reversal of
the reserve for reduction entry(82,441,009yen) to unappropriatedretained earnings, as distributionof earnings.

Based on such policy, SHR
decided to distribute
7,733,315,730 yen, which is
obtained by adding a reversal of
the reserve for temporary
difference adjustments(194,129,553 yen) and a reversalof the reserve for reduction
entry(911,281,820 yen) tounappropriated retained earnings
as distribution of earnings

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

In addition, pursuant to the policy
for "distribution of money inexcess of profits" as set forth in
Article 46, Paragraph 2 of the
Articles of Incorporation of SHR,SHR decided to make a
distribution for the 70,103,712 yen
in allowance for temporary
difference adjustments for the
purpose of reflecting the effect on
distributions of tax and accounting
differences.

45

(5) Statement of Cash Flows(Thousand yen)
16th Fiscal Period(From May 1, 2022
to October 31, 2022)

17th Fiscal Period(From November 1, 2022
to April 30, 2023)

7,205,115
2,574,622
13,86015,502(131)
716,007(9,646)
156,161(40,674)
15,990181,951
124,450
678,924
14,733

6,637,843
2,629,281
13,1988,400(135)
720,095
7,546(125,262)(8,275)(18,637)(117,546)(87,023)(678,924)(19,277)

22,309,047(61,136)
33,894,779
131(707,296)(600)
33,187,013－
16,976
8,978,259
135(695,165)(584)
8,282,644(10,421,309)(3,726,416)(420)－(482,529)(728,830)
344,981(661,699)(18,585)(15,694,808)(947,849)－(5,995)
21,642(221,507)－
1,521,103(1,493,347)(2,625)(1,128,578)(6,000,000)
16,000,000(12,400,000)(3,000,000)(3,999,964)(7,522,876)(16,922,840)
569,364
27,187,740
27,757,104(7,700,000)
18,800,000(11,100,000)－－(7,509,703)(7,509,703)(355,637)
27,757,104
27,401,467

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease due to sale of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
Purchase of intangible assets
Proceeds from refunds of investment securities
Purchases of investment securities
Payments for lease and guarantee deposits
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
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of investment corporation bonds
Purchase of own investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

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

46

*1

*1

(6) Notes to Financial Statements

1. Organization
Sekisui House Reit, Inc. (“SHR”) is a Japanese real estate investment corporation established in September
2014 under the Act on Investment Trusts and Investment Corporations of Japan (the “Investment TrustAct”).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 (totalacquisition cost of 114.3 billion yen) 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 the dissolved 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
an absorption-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 thesurviving company and the former SHAM being the dissolved company, and changed its company name to thecurrent 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
Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of SHR, whichwere prepared 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 andmodifications have been made to the financial statements issued domestically in order to present them in aformat which is more familiar 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.

47

3. Summary of Significant Accounting Policies
1. Standards and methods forvaluation of assets

2. Method of depreciation andamortization of non-current assets

3. Accounting for deferred assets

4. Standards for recording allowance

5. Standards for revenue and expense
recognition

Securities
Other securities
Silent partnership equity interests
The amount equivalent to the share of the net profit or loss of the silent partnershipwill be incorporated.
(1) Property, plant and equipment (including assets in trust)
Depreciation is calculated using the straight-line method.
The useful lives of principal property, plant and equipment are as follows:
Buildings
3-69 years
Structures
6-52 years
Machinery and equipment
10-61 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 the remaining lifeof each fixed-term land lease contract.
(3) Long-term prepaid expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
(1) Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized utilizing the straight-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).
Allowance for doubtful accounts
To prepare for possible losses arising from default on receivables, the estimateduncollectable amount is recorded by examining collectability on a case-by-case basis
for doubtful and other specific receivables.
(1) Revenue recognition
The details of the main performance obligations relating to revenue arising fromcontracts with customers and the timing (usual timing of revenue recognition) whensuch performance obligations are satisfied are as follows.
1) Sale of real estate, etc.
With regard to the sale of real estate, etc., income is calculated based on when thebuyer gains control over the real estate, etc., at the point in time the delivery
obligation stipulated in the contract relating to the sale of the real estate issatisfied.
2) Utilities revenue
Utilities revenue mainly represents water utility revenue. With regard to water
utility revenue, revenue is calculated based on the provision of electricity, water,etc. to lessees, as customers, under lease contracts for real estate, etc., and theagreements that are attached to the contracts.
As for the water utility revenue when SHR is deemed to be acting as an agent in
the transaction, revenue is recognized at the net amount after deducting theamount to be paid to other parties from the amount received as the payment forelectricity, gas, etc. supplied by those other parties.

Rent revenue
Other leasebusiness revenue

SHR generally recognizes rent revenue, including fixed rent
revenues, variable rent revenues and common area charges, onan accrual basis over the term of each lease agreement.
Other lease business revenue is recognized in accordance withJapanese GAAP, typically as the amounts under the relevant
agreements become due.

48

(2) Accounting for property taxes
In accounting for property tax, city planning tax, depreciable asset tax, etc. on realestate, etc., of the tax amount assessed and determined, the amount corresponding 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 real estate ortrust beneficiary interests of real estate as assets in trust, is not recognized as expenses
related to rent business in the corresponding fiscal period but included in theacquisition cost of the property.
Property taxes capitalized as a part of the acquisition cost amounted to 54,790
thousand yen for the 16th fiscal period.
6. Method of hedge accounting(1) Method of hedge accounting
Deferral hedge accounting is applied. However, the special accounting treatment isapplied 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 and anassessment of the effectiveness is thus omitted.
(5)Special accounting treatment
Under the special accounting treatment, interest rate swaps are not measured at fairvalue, but the differential paid or received under the swap agreements is recognized andincluded in or deducted from interest expense. Any amounts received under interest rate
swaps subject to such accounting treatment are not recognized as income on theaccompanying statements of income and retained earnings but rather have the effect of
decreasing interest expenses.
7. Scope of funds in the statement of
The funds (cash and cash equivalents) in the statement of cash flows consist of cash on
cash flows
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 from the date ofacquisition, which are readily convertible to cash and bear only an insignificant risk ofprice fluctuation.
8. Other significant matters serving as
Accounting for trust beneficiary interests of real estate, etc. as assets in trust
basis for preparation of financial
Concerning trust beneficiary interests of real estate, etc. as assets in trust, all accounts
statementsof assets and liabilities within assets in trust as well as all accounts of revenue andexpenses from the assets in trust are recognized in the relevant account items on thebalance sheet and the statement of income and retained earnings.
The following material items of the assets in trust recognized in the relevant accountitems are separately listed on the balance sheet.
1) Cash and deposits in trust2) Buildings in trust; Structures in trust; Machinery and equipment in trust; Tools,
furniture and fixtures in trust; Land in trust; Construction in progress in trust;
Leasehold rights in trust3) Tenant leasehold and security deposits in trust49

4. Notes to Balance Sheet*1. Minimum net assets designated in Article 67-4 of the Investment Trust Act(Thousand yen)
16th Fiscal Period(As of October 31, 2022)

17th Fiscal Period(As of April 30, 2023)
50,00050,0002. Commitment line agreement
SHR has entered into a commitment line agreement with three financial institutions in order to secure
flexible and stable financing.
(Thousand yen)
17th Fiscal Period(As of April 30, 2023)

16th Fiscal Period(As of October 31, 2022)
Total amount of commitment line

15,000,000

15,000,000－－

15,000,000

15,000,000

Balance executed as loans
Unused line of credit*3. Status of cancellation of own investment units
16th Fiscal Period(As of October 31, 2022)
Total number of units cancelled
Total amount cancelled

17th Fiscal Period(As of April 30, 2023)

49,651 units

49,651 units

3,999,964 thousand yen

3,999,964 thousand yen(Note) There were no cancellations of own investment units during the fiscal period under review.

*4. Matters concerning accounting for reserve and reversal of reserve for temporary difference adjustments(Thousand yen)
17th Fiscal Period(As of April 30, 2023)

16th Fiscal Period(As of October 31, 2022)
Gain on negative goodwill (*)
Initial amount

1,556,827

1,556,827

Balance at beginning of period

604,535

417,038

Reserve amount during period－－

Reversal amount during period

187,497

222,908

Balance at end of period

417,038

194,129

Appropriated for distributions

Appropriated for distributions

Reason for reserve and reversal(*) This is part of the gain on negative (*)This is part of the gain on negative
goodwill that occurred in the past
goodwill that occurred in the pastfiscal years, and from the fiscal period fiscal years, and from the fiscal period
following the fiscal period in which it following the fiscal period in which it
was accumulated, SHR plans to
was accumulated, SHR plans toreverse 1% or more of thereverse 1% or more of thecorresponding amount divided
corresponding amount divided
equally over 50 years and apply it to equally over 50 years and apply it tocash distributions..
cash distributions.

50

5. Notes to Statement of Income and Retained Earnings*1. Breakdown of property-related operating revenue and expenses
16th Fiscal Period(From May 1, 2022
to October 31, 2022)
A.

B.

C.

Property-related operating revenue
Rent revenue – real estate
Rental income
Other
Other lease business revenue
Utilities revenue
Other
Total property-related operating revenue
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 businessTotal property-related operating expenses
Property-related operating income [A − B]

14,263,700
360,038

14,623,738

241,565
217,532

459,098
15,082,836(Thousand yen)
17th Fiscal Period(From November 1, 2022
to April 30, 2023)

14,540,845
368,034
216,387
232,852

597,696
470,667
43,221
391,838
1,065,322

621,291
475,41349,506468,192
1,066,052

18,820390,295
2,573,621
724,475

17,504
392,5132,627,759
825,218

6,275,960
6,275,960
8,806,876

14,908,879

449,239
15,358,119

6,543,453
6,543,453
8,814,666*2. Breakdown of gain on sale of real estate properties
16th Fiscal Period (From May 1, 2022 to October 31, 2022)(Thousand yen)
The Ritz-Carlton, Kyoto
Proceeds from sale of real estate property
Cost of real estate property
Other sales expenses
Gain on sale of real estate property

23,000,000
22,288,419
996
710,583

17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.

6. Notes to Statement of Changes in Net Assets*1 Total number of authorized investment units and total number of investment units issued
16th Fiscal Period(From May 1, 2022
to October 31, 2022)

17th Fiscal Period(From November 1, 2022
to April 30, 2023)

Total number of authorized investment units

20,000,000units

20,000,000units

Total number of investment units issued

4,381,482units

4,381,482units51

7. Notes to Statement of Cash Distributions*1 Reserve for temporary difference adjustments
16th Fiscal Period(From May 1, 2022
to October 31, 2022)
With regard to the reserve for temporary difference adjustments,
SHR plans to drawdown at 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 from the fiscal period following the fiscal
period in which the reserve was made. SHR decided to
drawdown 222,908,905 yen for the 16th fiscal period.

17th Fiscal Period(From November 1, 2022
to April 30, 2023)
With regard to the reserve for temporary difference adjustments,
SHR plans to drawdown at 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 from the fiscal period following the fiscal
period in which the reserve was made. SHR decided to
drawdown 194,129,553 yen for the 17th fiscal period.

*2 Allowance for Temporary Difference Adjustments
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
1. Reason for provision, related assets etc. and amount of provision

Related assets, etc.

Reason for provision(Thousand yen)Amount of allowancefor temporary
difference adjustments

Buildings in trust, etc.

Excess depreciation related to depreciation at merger

63,004

Deferred gains or losses on hedges

Incurrence of loss on valuation of interest swaps

7,099

Total

70,103

2. Specific method of reversal
Item
Buildings in trust, etc.
Deferred gains or losses on hedges

Method of reversal
In principle, the allowance for temporary difference adjustments related to amerger is not reversed.
Schedule to be reversed based on changes in fair value of derivatives as hedging
instruments.

8. Notes to Statement of Cash Flows*1 Reconciliation of cash and cash equivalents at end of period to the corresponding balance sheet items
16th Fiscal Period(From May 1, 2022
to October 31, 2022)(Thousand yen)
17th Fiscal Period(From November 1, 2022
to April 30, 2023)

Cash and deposits

11,416,266

10,950,123

Cash and deposits in trust

16,340,838

16,451,343

Cash and cash equivalents

27,757,104

27,401,467

52

9. Lease Transactions
Operating lease transactions as lessee
Future minimum lease payments
16th Fiscal Period(As of October 31, 2022)(Thousand yen)
17th Fiscal Period(As of April 30, 2023)

Due within 1 year

777,936

779,496

Due after 1 year

41,449,423

41,141,003

42,227,359

41,920,499

Total

Operating lease transactions as lessor
Future minimum lease income
16th Fiscal Period(As of October 31, 2022)(Thousand yen)
17th Fiscal Period(As of April 30, 2023)

Due within 1 year

11,245,203

10,507,655

Due after 1 year

29,814,333

14,022,741

41,059,536

24,530,397

Total

10. Financial Instruments
1. Status of financial instruments(1) Policy for financial instruments
Making it a policy to conduct stable and sound financial operations that would contribute to steady
growth of its investment assets as well as efficient management and stability of management, SHR shallprocure funds through borrowings or the issuance of investment corporation bonds for the purposes ofutilizing such funds for the acquisition of assets, payments of repair expenses or distributions, operationsof 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 with suchfund procurement by diversifying fund procurement sources and means and by maintaining the ratio ofinterest-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 basedon rules that set forth the basic policy for handling derivative transactions and risk management.
Investment securities are investments in TK (tokumei kumiai) and are exposed to the credit risk of theissuer and the risk of fluctuations in the value of real estate, etc.

53

(3) Supplementary explanation of matters concerning fair value of financial instruments
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.
2. Matters concerning fair value of financial instruments
The carrying amount and fair value of financial instruments as of October 31, 2022 and April 30, 2023,
and the difference between them are as follows.
16th Fiscal Period (As of October 31, 2022)
Investments in TK (tokumei kumiai) real estate equity interest (Note 3) are not included in the table below.
Information on “Cash and deposits,” “Cash and deposits in trust,” and “Short-term loans
payable” is omitted as these are settled within a short period of time, thus the fair value approximates thebook value. Also, as “Tenant leasehold and security deposits in trust” are immaterial, related notes areomitted.
(Thousand yen)Book value recordedon the balance sheet

Fair value

Difference

－

－

－

(2) Current portion of long-term loans payable

31,310,000

31,316,902

6,902(3) Investment corporation bonds

31,500,000

31,306,127(193,872)(4) Long-term loans payable

187,732,000

187,048,027(683,972)

250,542,000

249,671,057(870,942)(12,202)(12,202)－(12,202)(12,202)－(1) Current portion of investment corporation bonds

Total liabilities(5) Derivative transactions (*)
Total derivative transactions (*)(*) Amounts arising from derivative transactions are shown on a net basis with any amounts inside square parentheses ( )indicating a net liability position.
(Note 1) Method of calculating the fair value of financial instruments(1) Current portion of investment corporation bonds (3) Investment corporation bonds
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 isbased on the method of calculating by discounting the combined total of principal and interest by a reasonably estimatedinterest rate applicable when conducting similar fund procurement for the remaining period of the bonds.
(2) Current portion of long-term loans payable (4) Long-term loans payable
As the long-term loans payable with floating interest rates reflect interest rate changes within a short period of time, thefair value is approximately the same as the book value and is thus stated at that book value (provided, however, that for
long-term loans payable with floating interest rates that qualify for the special accounting treatment of interest rate swaps(please refer to “12. Derivative Transactions”), the fair value is based on the method of calculation in which the sum
total amount of principal and interest accounted for with the interest rate swap is discounted by the rate assumed in theevent 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 asimilar new drawdown corresponding to the remaining period.
(5) Derivative transactions
Please refer to “12. Derivative Transactions”.

54

17th Fiscal Period (As of April 30, 2023)
Investments in TK (tokumei kumiai) real estate equity interest (Note 3) are not included in the table below.
Information on “Cash and deposits,” “Cash and deposits in trust,” and “Short-term loans
payable” is omitted as these are settled within a short period of time, thus the fair value approximates thebook value. Also, as “Tenant leasehold and security deposits in trust” are immaterial, related notes areomitted.
(Thousand yen)Book value recordedon the balance sheet

Fair value

Difference(1) Current portion of investment corporation bonds

3,000,000

3,018,073

18,073(2) Current portion of long-term loans payable

40,050,000

40,064,785

14,785(3) Investment corporation bonds

28,500,000

28,295,100(204,899)(4) Long-term loans payable

186,692,000

186,584,845(107,154)

258,242,000

257,962,805(279,194)(7,099)(7,099)－(7,099)(7,099)－Total liabilities(5) Derivative transactions (*)
Total derivative transactions (*)(*) Amounts arising from derivative transactions are shown on a net basis with any amounts inside square parentheses ( )indicating a net liability position.
(Note 1) Method of calculating the fair value of financial instruments(1) Current portion of investment corporation bonds (3) Investment corporation bonds
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 isbased on the method of calculating by discounting the combined total of principal and interest by a reasonably estimatedinterest rate applicable when conducting similar fund procurement for the remaining period of the bonds.
(2) Current portion of long-term loans payable (4) Long-term loans payable
As the long-term loans payable with floating interest rates reflect interest rate changes within a short period of time, thefair value is approximately the same as the book value and is thus stated at that book value (provided, however, that for
long-term loans payable with floating interest rates that qualify for the special accounting treatment of interest rate swaps(please refer to “12. Derivative Transactions”), the fair value is based on the method of calculation in which the sum
total amount of principal and interest accounted for with the interest rate swap is discounted by the rate assumed in theevent 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 asimilar new drawdown corresponding to the remaining period.
(5) Derivative transactions
Please refer to “12. Derivative Transactions”.

55

(Note 2) Repayment schedule of investment corporation bonds and loans after the closing date
16th Fiscal Period (As of October 31, 2022)
1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years－

10,000,000

9,000,000

2,000,000－

10,500,000

31,310,000

35,545,000

34,213,000

25,780,000

21,687,000

70,507,000

Investment corporation bonds
Long-term loans payable(Thousand yen)
Due after
5 years

Due in1 year or less17th Fiscal Period (As of April 30, 2023)(Thousand yen)
Due after
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

Investment corporation bonds

3,000,000

12,000,000

4,000,000

2,000,000－

10,500,000

Long-term loans payable

40,050,000

32,505,000

32,543,000

19,637,000

28,280,000

73,727,000(Note 3) Investments in TK (tokumei kumiai) real estate equity interest
In accordance with the treatment stipulated in Paragraph 24-16 of “Implementation Guidance on Accounting for Fair Value
Measurement” (ASBJ Guidance No.31, June 17, 2021, Accounting Standards Board of Japan), matters described in Paragraph4-1 of “Implementation Guidance on Fair Value Measurement of Financial Instruments” (ASBJ Guidance No.19, March 31,2020) have been omitted. The carrying amount on the balance sheet for investments in TK real estate equity interest according to
the above implementation is 486,179 thousand yen for the 16th period and 684,910 thousand yen for the 17th fiscal period.

11. Securities
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.

12. Derivative Transactions
1. Derivatives to which hedge accounting is not applied
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
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.

56

16th Fiscal Period (As of October 31, 2022)(Thousand yen)
Method of hedge
accounting

Type ofderivativetransactions

Contract amount
Main hedged item

Of which,over 1 year

Fair value

Calculation
method offair value

Interest rate swap
transaction
Floating interest
Long-term loans
Principal method
13,750,000
4,750,000(12,202)(Note1)rate receivablepayableand fixed interest
rate payable
Interest rate swap
transaction
Special accounting
Floating interest
Long-term loans
treatment for
117,611,000
103,301,000(Note2)－rate receivablepayableinterest rate swaps
and fixed interest
rate payable(Note1) Fair value is quoted by counterparties based on the prevailing market interest rates.
(Note2) 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 “ 10. Financial Instruments; 2. Matters concerning fair value of financial instruments (Note 1)”).

17th Fiscal Period (As of April 30, 2023)(Thousand yen)
Method of hedge
accounting

Type ofderivativetransactions

Contract amount
Main hedged item

Of which,over 1 year

Fair value

Calculation
method offair value

Interest rate swap
transaction
Floating interest
Long-term loans
Principal method
6,650,000－(7,099)(Note1)rate receivablepayableand fixed interest
rate payable
Interest rate swap
transaction
Special accounting
Floating interest
Long-term loans
treatment for
115,961,000
96,951,000(Note2)－rate receivablepayableinterest rate swaps
and fixed interest
rate payable(Note1) Fair value is quoted by counterparties based on the prevailing market interest rates.
(Note2) 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 “ 10. Financial Instruments; 2. Matters concerning fair value of financial instruments (Note 1)”).

13. Retirement Benefits
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.

5714. Income Taxes
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause
16th Fiscal Period(As of October 31, 2022)(Thousand yen)
17th Fiscal Period(As of April 30, 2023)

1,498,036
65,937
3,838
1,567,813(1,567,813)－－

1,482,723
82,0862,233
1,567,042(1,567,042)－－

Deferred tax assets
Valuation difference on assets acquired due to merger
Amortization of leasehold rights in trust
Deferred gains or losses on hedges
Deferred tax assets (subtotal)
Valuation allowance for total deductible temporary difference
Total deferred tax assets
Net deferred tax assets

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

Statutory tax rate
[Adjustments]

16th Fiscal Period(As of October 31, 2022)
31.46

(%)
17th Fiscal Period(As of April 30, 2023)
31.46(32.79)
0.96
0.36
0.02
0.01

(36.98)
1.20
4.32
0.01
0.01

Deductible cash distribution
Changes in valuation allowance
Reversal of reserve for reduction entry
Other
Effective income tax rate after application of tax-effect accounting

15. Profit or Loss of Affiliates Accounted for Under the Equity Method
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.

16. Transactions with Related Parties
1. Parent company and major corporate unitholders.
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.
2. Subsidiaries and affiliates.
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.

58

3. Sister companies.
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.
4. Directors and major individual unitholders.
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.

17. Revenue Recognition
1. Breakdown of revenue from contracts with customers
16th Fiscal Period (From May 1, 2022 to October 31, 2022)(Thousand yen)
Revenue from contracts
with customers (Note1)
Sale of real estate, etc.

Net sales to external customers

23,000,000

Utilities revenue

710,583

241,565

241,565－

14,844,921

23,241,565

15,797,070

Other
Total

(Note2)(Note1) Rental revenue, etc. subject to ASBJ Statement No. 13, “Accounting Standard for Lease Transactions” is not included in“Revenue from Contracts with Customers” because such revenue is excluded from the application of the revenue
recognition standard. Revenues from contracts with major customers consist of revenues from the sale of real estate and otherassets and utilities revenue.
(Note2) Regarding the sale of real estate, etc., in accordance with Article 48, Paragraph 2 of the Regulations on Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 47, 2006), gain on the sale of real estate properties, etc. is shown inthe statement of income and retained earnings after deducting cost of real estate property and direct sales expenses from theproceeds from the sale of real estate, etc.

17th Fiscal Period (From November 1, 2022 to April 30, 2023)(Thousand yen)
Revenue from contracts
with customers (Note1)

Net sales to external customers－

Sale of real estate, etc.
Utilities revenue
Other
Total

(Note2)－

216,387

216,387－

15,149,550

216,387

15,365,937(Note1) Rental revenue, etc. subject to ASBJ Statement No. 13, “Accounting Standard for Lease Transactions” is not included in“Revenue from Contracts with Customers” because such revenue is excluded from the application of the revenue
recognition standard. Revenues from contracts with major customers consist of revenues from the sale of real estate and otherassets and utilities revenue.
(Note2) Regarding the sale of real estate, etc., in accordance with Article 48, Paragraph 2 of the Regulations on Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 47, 2006), gain on the sale of real estate properties, etc. is shown inthe statement of income and retained earnings after deducting cost of real estate property and direct sales expenses from theproceeds from the sale of real estate, etc.

59

2. Information to understand revenue from contracts with customers
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
As stated in “3. Summary of Significant Accounting Policies”
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
As stated in “3. Summary of Significant Accounting Policies”
3. Information on the relationship between performance obligations under contracts with customers and cash
flows resulting from such contracts, and the amount and timing of proceeds expected to be recognized in
the next fiscal period or thereafter from contracts with customers existing at the end of this fiscal period(1) Balance of contract assets and contract liabilities, etc.
(Thousand yen)
17th Fiscal Period(From November 1, 2022
to April 30, 2023)

16th Fiscal Period(From May 1, 2022
to October 31, 2022)
Claims arising from contracts with customers(Balance at beginning of period)
Claims arising from contracts with customers(Balance at end of period)
Contract assets(Balance at beginning of period)
Contract assets(Balance at end of period)
Contract liabilities(Balance at beginning of period)
Contract liabilities(Balance at end of period)

43,84355,31255,312

52,404

－

－

－

－

－

－

－

－

(2) Transaction prices allocated to the remaining performance obligations
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
With regard to utilities revenue, SHR recognizes proceeds in the amount that SHR has the right to claimin accordance with Clause 19 of the Accounting Standard for Revenue Recognition, because SHR has theright to receive from the lessee, as the customer, an amount of compensation directly corresponding to thevalue of the items provided up to the end of the fiscal period. Accordingly, SHR applies the provisions ofClause 80-22(2) of Accounting Standard for Revenue Recognition and does not include related
information in the notes on transaction prices allocated to the remaining performance obligations.

60

17th Fiscal Period (From November 1, 2022 to April 30, 2023)
As of April 30, 2023, the transaction price allocated to the remaining performance obligations related tothe sale of real estate, etc. is 70,000,000 thousand yen for which the sale and purchase agreement wasentered into on March 29, 2023.
SHR plans to recognize revenue for the remaining performance obligations as follows upon delivery of
the abovementioned real estate.

1

End of October 2023

7,000,000 (10%)(Thousand yen)Calculation period forrevenue recognition
Ending October 2023 (FP 18)

2

End of April 2024

7,000,000 (10%)

Ending April 2024 (FP 19)

3

End of October 2024

7,000,000 (10%)

Ending October 2024 (FP 20)

4End of April 2025

7,000,000 (10%)

Ending April 2025 (FP 21)

5

End of October 2025

7,000,000 (10%)

Ending October 2025 (FP 22)

6

End of April 2026

7,000,000 (10%)

Ending April 2026 (FP 23)

7

End of October 2026

7,000,000 (10%)

Ending October 2026 (FP 24)

8

End of April 2027

7,000,000 (10%)

Ending April 2027 (FP 25)

9End of October 2027

7,000,000 (10%)

Ending October 2027 (FP 26)

10

End of April 2028

7,000,000 (10%)

Ending April 2028 (FP 27)

Planned disposition date

Planned disposition priceWith regard to utilities revenue, SHR recognizes proceeds in the amount that SHR has the right to claimin accordance with Clause 19 of the Accounting Standard for Revenue Recognition, because SHR has theright to receive from the lessee, as the customer, an amount of compensation directly corresponding to thevalue of the items provided up to the end of the fiscal period. Accordingly, SHR applies the provisions ofClause 80-22(2) of Accounting Standard for Revenue Recognition and does not include related
information in the notes on transaction prices allocated to the remaining performance obligations.

18. Asset Retirement Obligations
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
Not applicable.

61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.
16th Fiscal Period(From May 1, 2022
to October 31, 2022)(Thousand yen)
17th Fiscal Period(From November 1, 2022
to April 30, 2023)

Carrying amount
Balance at beginning of period

550,137,107

539,726,627

Amount of increase (decrease) during period(10,410,480)(1,737,503)

Balance at end of period

539,726,627

537,989,124

643,093,000

650,544,000

Fair value at end of period(Note 1) Carrying amount is the book value less accumulated depreciation.
(Note 2) Net increase during the 16th fiscal period is mainly attributable to the acquisition of 2 new properties (13,496,575 thousandyen), offset by a decrease during the period mainly attributable to the disposition of a property (22,085,268 thousand yen) that
SHR had owned and depreciation (2,573,621 thousand yen). Net increase during the 17th fiscal period is mainly attributableto capital expenditures (890,711 thousand yen), offset by a decrease during the period mainly attributable to depreciation(2,627,759 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 16th and 17th fiscal periods for investment and rental properties
is presented in “5. Notes to Statement of Income and Retained Earnings”.

20. Segment Information
1. Segment information
Segment information is omitted because SHR operates a single segment, which is the real estate leasing
business.
2. Related information
16th Fiscal Period (From May 1, 2022 to October 31, 2022)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single
products and services category are in excess of 90% of operating revenue on the statement of income andretained earnings.
(2) Information about geographic areas
1) Operating revenue
Information about net sales is omitted because net sales to external customers in Japan are in excessof 90% of operating revenue on the statement of income and retained earnings.
2) 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(Thousand yen)
Name of customer

Operating revenue

Sekisui House, Ltd.

1,363,547

62

Name of related segment
Real estate leasing business17th Fiscal Period (From November 1, 2022 to April 30, 2023)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single
products and services category are in excess of 90% of operating revenue on the statement of income andretained earnings.
(2) Information about geographic areas
1) Operating revenue
Information about net sales is omitted because net sales to external customers in Japan are in excessof 90% of operating revenue on the statement of income and retained earnings.
2) 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(Thousand yen)
Name of customer

Operating revenue

Sekisui House, Ltd.

Name of related segment

1,363,547

Real estate leasing business

21. Per Unit Information
16th Fiscal Period(From May 1, 2022
to October 31, 2022)

17th Fiscal Period(From November 1, 2022
to April 30, 2023)

Net assets per unit

67,211yen

67,013yen

Net income per unit

1,636yen

1,514yen(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.
(Note 2) The basis for calculating net income per unit is as follows.
16th Fiscal Period(From May 1, 2022
to October 31, 2022)
Net income (Thousand yen)Amount not attributable to common unitholders(Thousand yen)
Net income attributable to common investment units(Thousand yen)
Average number of investment units during period(Units)22. Significant Subsequent Events
Not applicable.

63

17th Fiscal Period(From November 1, 2022
to April 30, 2023)

7,204,510

6,637,238－－

7,204,510

6,637,238

4,402,287

4,381,482

23. Additional Information(i) Disposition of Asset
SHR decided on the disposition of trust beneficiary interest in domestic real estate and entered into apurchase and sale agreement as follows. The disposition of the quasi co-ownership interest in trust
beneficiary interest is scheduled to be carried out in 10 equal installments, with 10% of the ownership shareto be disposed on each planned disposition date.
As a result of this disposition, a gain on sale of real estate properties is expected to be recorded during eachcalculation period as follows.
Property name: Gotenyama SH Building
Type of use: Office building
Location: Shinagawa-ku, Tokyo
Planned disposition price: 70,000 million yen (Note 1)
Contract date: March 29, 2023
Buyer: TIS Inc.
(Million yen)
Planned disposition date

Planned disposition price(Note 2)

(Note 1)

1
2
3
4
5
6
7
8
9
10

End of October 2023
End of April 2024
End of October 2024
End of April 2025
End of October 2025
End of April 2026
End of October 2026
End of April 2027
End of October 2027
End of April 2028

7,000 (10%)
7,000 (10%)
7,000 (10%)
7,000 (10%)
7,000 (10%)
7,000 (10%)
7,000 (10%)
7,000 (10%)
7,000 (10%)
7,000 (10%)(Note 1)

"Planned disposition price" is the sale and purchase price stated in the sale and purchase agreement for the quasi co-ownership interest in
trust beneficiary interest (excluding consumption tax, local consumption tax, sales commission, and other various expenses; rounded
down to the nearest million yen).
In the event that the "planned disposition date" is not a business day, the said date will be the immediately preceding business day.
"Gain on disposition (expected)" is the approximate value to be recorded on each planned disposition date as of the date of thisdocument and is subject to change.

(Note 2)
(Note 3)64

Gain on disposition(expected) (Note 3)
1,017
2,080
2,093
2,107
2,121
2,135
2,149
2,163
2,177
2,191

Calculation periodEnding October 2023 (FP 18)
Ending April 2024 (FP 19)
Ending October 2024 (FP 20)
Ending April 2025 (FP 21)
Ending October 2025 (FP 22)
Ending April 2026 (FP 23)
Ending October 2026 (FP 24)
Ending April 2027 (FP 25)
Ending October 2027 (FP 26)
Ending April 2028 (FP 27)

(7) Supplementary Schedules
17th Fiscal Period (From November 1, 2022 to April 30, 2023)
1. Schedule of securities(1) Shares
Not applicable.
(2) Securities other than shares(Thousand yen)Accruedinterest

Prepaid
accruedinterest

Valuation(Note1)

Valuation
profit/loss

Remarks

Type

Brand Name

Face
value

Book
value

TK (tokumei
kumiai) equity
interest

TK (tokumei kumiai)real estate equity interestin Gemini1 GK TK

480,000

463,402－－463,402－(Note2)

TK (tokumei
kumiai) equity
interest

TK (tokumei kumiai)real estate equity interestin Gemini2 GK TK

220,000

221,507－－

221,507－(Note3)Total

700,000

684,910－－

684,910－－(Note1) “Valuation” is the book value.
(Note2) Asset management refers to silent partnerships 34.55% quasi co-ownership interest of the trust beneficiary interest in realestate regarding the compartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor
underground through 4th floor above ground and 11th floor through 19th floor above ground of the “Akasaka Garden
City” building, as well as the accompanying right of site (ratio of right of site: 662,768/1,000,000 (or approximately
66.3%)), and has not yet been acquired by SHR.
(Note3) The underlying asset refers to the trust beneficiary interest in real estate of "Ningyocho PREX".

2. Contract amount and fair value of derivative transactions(Thousand yen)Contract amount (Note1)
Category

Transaction other thanmarket transaction
Transaction other thanmarket transaction

Type

Fair value(Note2)

Of which,over 1 year

Interest rate swap transaction
Floating interest rate receivable and fixedinterest rate payable
Interest rate swap transaction
Floating interest rate receivable and fixedinterest rate payable
Total

6,650,000－

115,961,000

96,951,000

122,611,000

96,951,000(7,099)－(Note3)(7,099)(Note1) The contract amount of interest rate swap transactions is based on the notional principal amount.
(Note2) Fair value is quoted by counterparties based on the prevailing market interest rates.
(Note3) The fair value is omitted because the transaction meets the criteria for the special accounting treatment under the AccountingStandards for Financial Instruments.

65

3. Schedule of property, plant and equipment and intangible assets(Thousand yen)Type of assets

Buildings
in trust
Structuresin trust
Machineryandequipment intrust
Property, Tools,
plant and furniture andequipment fixturesin trust

Balanceat beginningof period

Amount of Amount of
increasedecreaseduringduringperiodperiodBalanceat end ofperiodNet balanceat end ofperiodoraccumulated
amortization

For theperiod25,844,317

2,403,672

159,506,295

184,641,536

709,597

1,620,073

3,096

－

1,623,170

365,798

32,543

1,257,371

2,387,047

32,606－2,419,653

490,235

56,866

1,929,418

870,024

145,411－1,015,435

355,857

79,558659,578

Land in trust

368,656,815－－ 368,656,815－－

368,656,815

Constructionin progress intrust

17,859

－

－

－

－

－

558,193,357

890,711

18,380 559,065,688

27,056,209

2,572,640

532,009,479

6,278,442－－

6,278,442

298,796

55,1185,979,645

17,655

5,995－

23,651

15,555

1,521

8,095

6,296,097

5,995

－

6,302,093

314,351

56,6405,987,741

564,489,455

896,707

18,380 565,367,781

27,370,561

2,629,281

537,997,220

Subtotal
Leaseholdrights in trust
Intangible
Other
assetsSubtotal
Total

521 185,350,612

Accumulated depreciation

17,859Notes

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

66

5. Schedule of investment corporation bonds

Name

Issue date

SHI
Fourth Series Unsecured February 28,
Investment Corporation
2014
Bond
SHI
Fifth Series Unsecured August 29,
Investment Corporation
2014
Bond
SHR
First Series Unsecured September 8,
Investment Corporation
2016
Bond
SHR
Third Series Unsecured July 11,
Investment Corporation
2019
Bond (Green Bonds)
SHR
Fourth Series Unsecured July 11,
Investment Corporation
2019
Bond (Green Bonds)
SHR
Fifth Series Unsecured November 1,
Investment Corporation
2019
Bond (Green Bonds)
SHR
Sixth Series Unsecured February 28,
Investment Corporation
2020
Bond (Green Bonds)
SHR
Seventh Series
September 9,
Unsecured Investment
2020
Corporation Bond
(Green Bonds)
SHR
Eighth Series Unsecured September 9,
Investment Corporation
2020
Bond (Green Bonds)
SHR
Ninth Series Unsecured May 19,
Investment Corporation
2021
Bond (Green Bonds)
Total

－

Balance at
Amount ofBalance
beginning of
Coupondecrease during at end of period
Redemption Use of
periodrate
Security
period(Thousanddateproceeds(Thousand(%)(Thousand yen )
yen )
yen )
3,000,000－

3,000,000

1.069

February 28,
2024(Note1)3,000,000－

3,000,000

0.871

August30,20242,000,000－

2,000,000

0.340

September 8,2026

4,000,000－

4,000,000

0.220

July 11,2024

2,500,000－

2,500,000

0.570

July 11,2029(Note 2) Unsecured

5,000,000－

5,000,000

0.220

November 1,
2024

2,000,000－

2,000,000

0.500

February 28,2030

4,000,000－

4,000,000

0.250

September 9,2025

4,000,000－

4,000,000

0.510

September 9,2030

2,000,000－

2,000,000

0.460

May 19,2031

31,500,000－

31,500,000

－

－

－

－

(Note 1) As of the end of the fiscal period under review, these bonds are recorded as “Current portion of investment corporation
bonds” in “Current liabilities” on the balance sheet.
(Note 2) The funds are used to repay borrowings or redemption of existing investment corporation bonds, etc.
(Note 3) These investment corporation bonds are equipped with pari passu clause among specified investment corporation bonds.
(Note 4) The following is the maturity schedule of investment corporation bonds within five years of the balance sheet date.

(Thousand yen)Due in1 year or less
Investment Corporation Bonds

3,000,000

1 to 2 years
12,000,000

67

2 to 3 years
4,000,000

3 to 4 years
2,000,000

4 to 5 years－

6. Schedule of loans payable(Thousand yen)
Category

Shortterm
loans
payableLongtermloanspayableLenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodMUFG Bank, Ltd.

2,980,000－

2,980,000－

Mizuho Bank, Ltd.

2,450,000－

2,450,000－

Sumitomo Mitsui Banking
Corporation

2,270,000－

2,270,000－

MUFG Bank, Ltd.

4,600,000－－

4,600,000

Mizuho Bank, Ltd.

700,000－－

700,000

Sumitomo Mitsui Banking
Corporation

3,700,000－－

3,700,000

Sumitomo Mitsui Trust Bank,
Limited

700,000－－

700,000

Development Bank of Japan Inc.

300,000－－

300,000

Development Bank of Japan Inc.

1,000,000－

1,000,000－

MUFG Bank, Ltd.

1,300,000－

1,300,000－

Mizuho Bank, Ltd.

Averageinterest
rate(%)(Note 1)

Repayment due date

0.23017January 31, 2023

1.47450

November 30, 2024

1,000,000－

1,000,000－

600,000－

600,000－

Sumitomo Mitsui Trust Bank,
Limited

300,000－

300,000－

Mizuho Trust & Banking Co., Ltd.

800,000－

800,000－

Resona Bank, Limited

500,000－

500,000－

The Norinchukin Bank

500,000－

500,000－

THE BANK OF FUKUOKA, LTD.

700,000－

700,000－

Aozora Bank, Ltd.

200,000－

200,000－

Shinkin Central Bank

200,000－

200,000－

The Senshu Ikeda Bank, Ltd.

200,000－

200,000－

The Shizuoka Bank, Ltd.

200,000－

200,000－

The 77 Bank, Ltd.

200,000－

200,000－

The Hiroshima Bank, Ltd.

200,000－

200,000－

The Yamaguchi Bank, Ltd.

200,000－

200,000－

MUFG Bank, Ltd.

700,000－

700,000－

0.88470

Development Bank of Japan Inc.

650,000－

650,000－

0.88500

Mizuho Bank, Ltd.

350,000－

350,000－

Sumitomo Mitsui Banking
Corporation

650,000－

650,000－

Sumitomo Mitsui Trust Bank,
Limited

350,000－

350,000－

Resona Bank, Limited

300,000－

300,000－

MUFG Bank, Ltd.

750,000－－

750,000

MUFG Bank, Ltd.

500,000－－

500,000

Mizuho Bank, Ltd.

400,000－－

400,000

Sumitomo Mitsui Banking
Corporation

700,000－－

700,000－

350,000

Mizuho Trust & Banking Co., Ltd.

300,000－－

300,000

Resona Bank, Limited

100,000－－

100,000

100,000－－

100,000

2,100,000－－

2,100,000

Mizuho Bank, Ltd.

November 30, 2022

1.00850

0.67400
Development Bank of Japan Inc.

68

Lump-sumpayment
at maturity(Note2)

Un-secured
Un-guaranteed

February 28, 2023

1.01850－

Security

0.86650

0.89470

350,000

Use ofproceeds

0.85250

Sumitomo Mitsui Banking
Corporation

Sumitomo Mitsui Trust Bank,
LimitedRepayment
methodNovember 30, 2023
(Note3)

August 31, 2023
(Note3)

Category

LenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodMizuho Bank, Ltd.

450,000－－

450,000

Sumitomo Mitsui Banking
Corporation

450,000－－

450,000

1,000,000－－

1,000,000

MUFG Bank, Ltd.

700,000－－

700,000

Mizuho Bank, Ltd.

1,100,000－－

1,100,000

Sumitomo Mitsui Banking
Corporation

1,100,000－－

1,100,000

Sumitomo Mitsui Trust Bank,
Limited

450,000－－

450,000

Mizuho Trust & Banking Co., Ltd.

500,000－－

500,000

Resona Bank, Limited

300,000－－

300,000

The Norinchukin Bank

300,000－－

300,000

Aozora Bank, Ltd.

200,000－－

200,000

The Yamaguchi Bank, Ltd.

100,000－－

100,000

MUFG Bank, Ltd.

450,000－－

450,000

Development Bank of Japan Inc.

600,000－－

600,000

THE BANK OF FUKUOKA, LTD.

200,000－－

200,000

Shinkin Central Bank

100,000－－

100,000

The Senshu Ikeda Bank, Ltd.

100,000－－

100,000

The Shizuoka Bank, Ltd.

100,000－－

100,000

The 77 Bank, Ltd.

100,000－－

100,000

The Hiroshima Bank, Ltd.

100,000－－

100,000

Mizuho Bank, Ltd.

200,000－－

200,000

Sumitomo Mitsui Banking
Corporation

200,000－－

200,000

Sumitomo Mitsui Trust Bank,
Limited

400,000－－

400,000

Mizuho Trust & Banking Co., Ltd.

500,000－－

500,000

Resona Bank, Limited

300,000－－

300,000

The Norinchukin Bank

300,000－－

300,000

MUFG Bank, Ltd.

600,000－－

600,000

MUFG Bank, Ltd.

1,000,000－－

1,000,000

Mizuho Bank, Ltd.

800,000－－

800,000

Sumitomo Mitsui Banking
Corporation

800,000－－

800,000

Mizuho Trust & Banking Co., Ltd.

Averageinterest
rate(%)(Note 1)

Repayment due date

0.68030

August 31, 2023
(Note3)

Repayment
methodUse ofproceeds

Security

Lump-sumpayment
at maturity(Note2)

Un-secured
Un-guaranteed

0.63800

February 29, 2024
(Note3)0.50500

LongtermloanspayableAugust 30, 2024

0.57000

August 29, 2025
0.59750

400,000－－

400,000

MUFG Bank, Ltd.

1,810,000－－

1,810,000

MUFG Bank, Ltd.

440,000－－

440,000

Development Bank of Japan Inc.

0.49500

0.60500
September 8, 2026
0.67000

Mizuho Bank, Ltd.

900,000－－

900,000

MUFG Bank, Ltd.

600,000－－

600,000

Mizuho Bank, Ltd.

200,000－－

200,000

Sumitomo Mitsui Trust Bank,
Limited

300,000－－

300,000

Mizuho Trust & Banking Co., Ltd.

600,000－－

600,000

Resona Bank, Limited

400,000－－

400,000

Shinkin Central Bank

300,000－－

300,000

0.61000

February 28, 2025

69

0.67000

Category

LenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodMUFG Bank, Ltd.

1,500,000－－

1,500,000

MUFG Bank, Ltd.

800,000－－

800,000

Mizuho Bank, Ltd.

700,000－－

700,000

1,200,000－－

1,200,000

Development Bank of Japan Inc.

Averageinterest
rate(%)(Note 1)

Repayment due date

Repayment
methodUse ofproceeds

Security

Lump-sumpayment
at maturity(Note2)

Un-secured
Un-guaranteed

0.72500

February 27, 2026
0.77880

THE BANK OF FUKUOKA, LTD.

500,000－－

500,000

Aozora Bank, Ltd.

300,000－－

300,000

The Yamaguchi Bank, Ltd.

500,000－－

500,000

MUFG Bank, Ltd.

990,000－－

990,000

MUFG Bank, Ltd.

260,000－－

260,000

Mizuho Bank, Ltd.

550,000－－

550,000

Mizuho Trust & Banking Co., Ltd.

220,000－－

220,000

Development Bank of Japan Inc.

220,000－－

220,000

176,000－－

176,000

2,352,000－－

2,352,000

MUFG Bank, Ltd.

750,000－－

750,000

Mizuho Bank, Ltd.

Mizuho Bank, Ltd.
The Norinchukin Bank

Longtermloanspayable1,050,000－－

1,050,000

Sumitomo Mitsui Banking
Corporation

600,000－－

600,000

Sumitomo Mitsui Trust Bank,
Limited

1,050,000－－

1,050,000

Mizuho Trust & Banking Co., Ltd.

650,000－－

650,000

Resona Bank, Limited

950,000－－

950,000

The Norinchukin Bank

750,000－－

750,000

MUFG Bank, Ltd.

650,000－－

650,000

Development Bank of Japan Inc.

550,000－－

550,000

MUFG Bank, Ltd.

500,000－－

500,000

MUFG Bank, Ltd.

500,000－－

500,000

Mizuho Bank, Ltd.

100,000－－

100,000

0.37000

0.45254

November 30, 2023
(Note3)0.61380

August 29, 2025

0.34000

0.41800

May 31, 2023
(Note3)0.426220.56500

February 27, 2026
0.63500

The 77 Bank, Ltd.

500,000－－

500,000

The Hiroshima Bank, Ltd.

500,000－－

500,000

MUFG Bank, Ltd.

1,900,000－－

1,900,000

Mizuho Bank, Ltd.

4,200,000－－

4,200,000

Sumitomo Mitsui Banking
Corporation

1,900,000－－

1,900,000

Development Bank of Japan Inc.

376,000－－

376,000

0.28568

MUFG Bank, Ltd.

300,000－－

300,000

0.34900

Mizuho Bank, Ltd.

0.70000
August 31, 2027
0.78300

2,459,000－－

2,459,000

Sumitomo Mitsui Banking
Corporation

260,000－－

260,000

Mizuho Trust & Banking Co., Ltd.

900,000－－

900,000

Development Bank of Japan Inc.

565,000－－

565,000

0.48000

MUFG Bank, Ltd.

450,000－－

450,000

0.56500

Mizuho Bank, Ltd.

1,332,000－－

1,332,000

390,000－－

390,000

1,350,000－－

1,350,000

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

70

August 30, 2024
0.35900

February 26, 2027
0.57500

Category

LenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodMUFG Bank, Ltd.

500,000－－

500,000

Mizuho Bank, Ltd.

500,000－－

500,000

Sumitomo Mitsui Banking
Corporation

500,000－－

500,000

Sumitomo Mitsui Trust Bank,
Limited

700,000－－

700,000

Mizuho Trust & Banking Co., Ltd.

200,000－－

200,000

Resona Bank, Limited

200,000－－

200,000

Averageinterest
rate(%)(Note 1)

Repayment
methodUse ofproceeds

Security

Lump-sumpayment
at maturity(Note2)

Un-secured
Un-guaranteed

0.29900

0.30900

100,000－－

100,000

MUFG Bank, Ltd.

1,000,000－－

1,000,000

Mizuho Bank, Ltd.

800,000－－

800,000

Sumitomo Mitsui Banking
Corporation

700,000－－

700,000

Sumitomo Mitsui Trust Bank,
Limited

400,000－－

400,000

Mizuho Trust & Banking Co., Ltd.

400,000－－

400,000

Resona Bank, Limited

200,000－－

200,000

The Norinchukin Bank

200,000－－

200,000

Shinkin Central Bank

200,000－－

200,000

0.41388

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.55600

Mizuho Bank, Ltd.

800,000－－

800,000

Sumitomo Mitsui Banking
Corporation

700,000－－

700,000

Sumitomo Mitsui Trust Bank,
Limited

200,000－－

200,000

Mizuho Trust & Banking Co., Ltd.

400,000－－

400,000

Resona Bank, Limited

200,000－－

200,000

The Norinchukin Bank

500,000－－

500,000

MUFG Bank, Ltd.

1,400,000－－

1,400,000

Mizuho Bank, Ltd.

2,400,000－－

2,400,000

Sumitomo Mitsui Banking
Corporation

1,000,000－－

1,000,000

Sumitomo Mitsui Trust Bank,
Limited

200,000－－

200,000

Mizuho Trust & Banking Co., Ltd.

400,000－－

400,000

Resona Bank, Limited

300,000－－

300,000

THE BANK OF FUKUOKA, LTD.

300,000－－

300,000

The Senshu Ikeda Bank, Ltd.

200,000－－

200,000

The 77 Bank, Ltd.

200,000－－

200,000

The Yamaguchi Bank, Ltd.

200,000－－

200,000

Mizuho Bank, Ltd.

1,410,000－－

1,410,000

Sumitomo Mitsui Banking
Corporation

1,200,000－－

1,200,000

Sumitomo Mitsui Trust Bank,
Limited1,300,000－－

1,300,000

Mizuho Trust & Banking Co., Ltd.

600,000－－

600,000

Resona Bank, Limited

700,000－－

700,000

Shinkin Central Bank

200,000－－

200,000

MUFG Bank, Ltd.

1,000,000－－

1,000,000

The Norinchukin Bank

Repayment due date

May 31, 2023
(Note3)0.39580

August 30, 2024
0.40580

August 31, 2026
Longtermloanspayable71

0.56600

0.68500

February 29, 2028
0.69500

0.28100

0.27100

August 31, 2023
(Note3)

CategoryLongtermloanspayableLenderBalanceat beginningof period

Amount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodAverageinterest
rate(%)(Note 1)

Repayment due date

0.42000

February 27, 2026

Mizuho Bank, Ltd.

1,500,000－－

1,500,000

Sumitomo Mitsui Banking
Corporation

1,230,000－－

1,230,000

Sumitomo Mitsui Trust Bank,
Limited

200,000－－

200,000

Mizuho Trust & Banking Co., Ltd.

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

February 27, 2026

MUFG Bank, Ltd.

1,170,000－－

1,170,000

0.46000

February 28, 2029

Development Bank of Japan Inc.

900,000－－

900,000
0.44000

February 28, 2029

The Senshu Ikeda Bank, Ltd.

300,000－－

300,000

MUFG Bank, Ltd.

1,200,000－－

1,200,000

Mizuho Bank, Ltd.

200,000－－

200,000

Sumitomo Mitsui Banking
Corporation

800,000－－

800,000

0.27300

November 30, 2023
(Note3)

Sumitomo Mitsui Trust Bank,
Limited

1,800,000－－

1,800,000

MUFG Bank, Ltd.

1,400,000－－

1,400,000

Mizuho Bank, Ltd.

0.44100

May 29, 2026

300,000－－

300,000

Sumitomo Mitsui Banking
Corporation

1,000,000－－

1,000,000

The Norinchukin Bank

800,000－－

800,000

MUFG Bank, Ltd.

1,700,000－－

1,700,000

Mizuho Bank, Ltd.

1,300,000－－

1,300,000

Sumitomo Mitsui Banking
Corporation

1,200,000－－

1,200,000

Mizuho Trust & Banking Co., Ltd.

600,000－－

600,000

Resona Bank, Limited

900,000－－

900,000

Development Bank of Japan Inc.

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

Sumitomo Mitsui Banking
Corporation

545,000－－

545,000

Mizuho Trust & Banking Co., Ltd.

500,000－－

500,000

Resona Bank, Limited

500,000－－

500,000

MUFG Bank, Ltd.

1,542,000－－

1,542,000

Mizuho Bank, Ltd.

300,000－－

300,000

Sumitomo Mitsui Banking
Corporation

500,000－－

500,000

Sumitomo Mitsui Trust Bank,
Limited

2,500,000－－

2,500,000

Resona Bank, Limited

500,000－－

500,000

THE BANK OF FUKUOKA, LTD.

200,000－－

200,000

MUFG Bank, Ltd.

400,000－－

400,000

0.59900
May 31, 2028

0.50000

0.29150
August 29, 2025
0.28000

0.49500

72

August 31, 2028

0.47500

0.29700
February 28, 2025

0.28700

Repayment
methodUse ofproceeds

Security

Lump-sumpayment
at maturity(Note2)

Un-secured
Un-guaranteedCategory

LenderAmount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiod990,000－－

990,000

Sumitomo Mitsui Banking
Corporation

1,840,000－－

1,840,000

Sumitomo Mitsui Trust Bank,
Limited

600,000－－

600,000

Mizuho Trust & Banking Co., Ltd.

700,000－－

700,000

Resona Bank, Limited

500,000－－

500,000

The Norinchukin Bank

400,000－－

400,000

Shinkin Central Bank

200,000－－

200,000

The Senshu Ikeda Bank, Ltd.

200,000－－

200,000

The 77 Bank, Ltd.

400,000－－

400,000

The Yamaguchi Bank, Ltd.

200,000－－

200,000

Mizuho Bank, Ltd.

Averageinterest
rate(%)(Note 1)－－

1,370,000

0.45000

400,000－－

400,000

0.36000

MUFG Bank, Ltd.

300,000－－

300,000

Mizuho Bank, Ltd.

100,000－－

100,000

Sumitomo Mitsui Banking
Corporation

800,000－－

800,000

Sumitomo Mitsui Trust Bank,
Limited

1,380,000－－

1,380,000

MUFG Bank, Ltd.

800,000－－

800,000

Mizuho Bank, Ltd.

210,000－－

210,000

Sumitomo Mitsui Banking
Corporation

1,800,000－－

1,800,000

Sumitomo Mitsui Trust Bank,
Limited

300,000－－

300,000

Mizuho Trust & Banking Co., Ltd.

870,000－－

870,000

Resona Bank, Limited

1,100,000－－

1,100,000

The Norinchukin Bank

0.28600

November 30, 2028

1,020,000－－

1,020,000

370,000－－

370,000

0.43500

MUFG Bank, Ltd.

200,000－－

200,000

0.28400

Mizuho Bank, Ltd.

600,000－－

600,000

Sumitomo Mitsui Banking
Corporation

500,000－－

500,000

Sumitomo Mitsui Trust Bank,
Limited

500,000－－

500,000

THE BANK OF FUKUOKA, LTD.

500,000－－

500,000

Shinkin Central Bank

1,000,000－－

1,000,000

The 77 Bank, Ltd.

500,000－－

500,000

1,000,000－－

1,000,000

MUFG Bank, Ltd.

300,000－－

300,000

Mizuho Bank, Ltd.

700,000－－

700,000

Sumitomo Mitsui Banking
Corporation

600,000－－

600,000

Mizuho Trust & Banking Co., Ltd.

500,000－－

500,000

Resona Bank, Limited

500,000－－

500,000

500,000－－

500,000

The Senshu Ikeda Bank, Ltd.

1,000,000－－

1,000,000

The Yamaguchi Bank, Ltd.

500,000－－

500,000

The Hiroshima Bank, Ltd.

500,000－－

500,000

73

Use ofproceeds

Security

Lump-sumpayment
at maturity(Note2)

Un-secured
Un-guaranteed

May 30, 2025

0.50700

Development Bank of Japan Inc.

The Norinchukin Bank

Repayment
methodAugust 31, 2027

1,370,000

The Shizuoka Bank, Ltd.

Repayment due date

0.46600

Development Bank of Japan Inc.

MUFG Bank, Ltd.

LongtermloanspayableBalanceat beginningof period

August 29, 2025
0.29400

0.55850

February 28, 2029
0.56850

Category

LenderAmount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodMizuho Bank, Ltd.

1,280,000－－

1,280,000

Sumitomo Mitsui Banking
Corporation

1,030,000－－

1,030,000

Sumitomo Mitsui Trust Bank,
Limited

500,000－－

500,000

Mizuho Bank, Ltd.

2,650,000－－

2,650,000

Sumitomo Mitsui Banking
Corporation

2,110,000－－

2,110,000

Sumitomo Mitsui Trust Bank,
Limited

480,000－－

480,000

Mizuho Trust & Banking Co., Ltd.

200,000－－

200,000

Resona Bank, Limited

300,000－－

300,000

210,000－－

210,000

MUFG Bank, Ltd.

1,550,000－－

1,550,000

Mizuho Bank, Ltd.

1,270,000－－

1,270,000

Sumitomo Mitsui Banking
Corporation

1,180,000－－

1,180,000

MUFG Bank, Ltd.

1,060,000－－

1,060,000

Mizuho Bank, Ltd.

340,000－－

340,000

Sumitomo Mitsui Banking
Corporation

760,000－－

760,000

Sumitomo Mitsui Trust Bank,
Limited

1,500,000－－

1,500,000

Resona Bank, Limited

1,400,000－－

1,400,000

Development Bank of Japan Inc.

800,000－－

800,000

The Norinchukin Bank

700,000－－

700,000

MUFG Bank, Ltd.

2,490,000－－

2,490,000

Mizuho Bank, Ltd.

790,000－－

790,000

Sumitomo Mitsui Banking
Corporation

1,760,000－－

1,760,000

Sumitomo Mitsui Trust Bank,
Limited

500,000－－

500,000

Mizuho Trust & Banking Co., Ltd.

900,000－－

900,000

MUFG Bank, Ltd.

480,000－－

480,000

Mizuho Bank, Ltd.

360,000－－

360,000

Sumitomo Mitsui Banking
Corporation

390,000－－

390,000

Sumitomo Mitsui Trust Bank,
Limited

900,000－－

900,000

Resona Bank, Limited

750,000－－

750,000

THE BANK OF FUKUOKA, LTD.

500,000－－

500,000

MUFG Bank, Ltd.

1,120,000－－

1,120,000

Mizuho Bank, Ltd.

840,000－－

840,000

Sumitomo Mitsui Banking
Corporation

910,000－－

910,000

Sumitomo Mitsui Trust Bank,
Limited1,000,000－－

1,000,000

Mizuho Trust & Banking Co., Ltd.

980,000－－

980,000

Resona Bank, Limited

800,000－－

800,000

The Norinchukin Bank

800,000－－

800,000

1,100,000－－

1,100,000

Mizuho Bank, Ltd.

400,000－－

400,000

Mizuho Trust & Banking Co., Ltd.

300,000－－

300,000

The Norinchukin Bank

LongtermloanspayableBalanceat beginningof period

Sumitomo Mitsui Trust Bank,
Limited74

Averageinterest
rate(%)(Note 1)

Repayment due date

0.25234

August 30, 2024

0.47500

August 31, 2029

0.24786

November 30, 2023
(Note3)0.46000

May 31, 2028

0.60200

November 29, 2030

0.52200

February 29, 2028

February 28, 2030

0.66500

May 31, 2029

Repayment
methodUse ofproceeds

Security

Lump-sumpayment
at maturity(Note2)

Un-secured
Un-guaranteedCategory

LenderBalanceat beginningof period

Resona Bank, Limited

300,000－－

300,000

The Norinchukin Bank

400,000－－

400,000

THE BANK OF FUKUOKA, LTD.

300,000－－

300,000

Shinkin Central Bank

300,000－－

300,000

The 77 Bank, Ltd.

300,000－－

300,000

The Yamaguchi Bank, Ltd.

400,000－－

400,000

The Shizuoka Bank, Ltd.

300,000－－

300,000

The Hiroshima Bank, Ltd.

300,000－－

300,000

Balanceat end ofperiod300,000－－

300,000

1,000,000－－

1,000,000

The Joyo Bank, Ltd

300,000－－

300,000

MUFG Bank, Ltd.

1,160,000－－

1,160,000

Mizuho Bank, Ltd.

960,000－－

960,000

Sumitomo Mitsui Banking
Corporation

880,000－－

880,000

Sumitomo Mitsui Trust Bank,
Limited

550,000－－

550,000

Mizuho Trust & Banking Co., Ltd.

350,000－－

350,000

Resona Bank, Limited

500,000－－

500,000

The Norinchukin Bank

400,000－－

400,000

MUFG Bank, Ltd.

1,400,000－－

1,400,000

Mizuho Bank, Ltd.

1,050,000－－

1,050,000

Sumitomo Mitsui Banking
Corporation

600,000－－

600,000

Sumitomo Mitsui Trust Bank,
Limited

500,000－－

500,000

Mizuho Trust & Banking Co., Ltd.

300,000－－

300,000

Resona Bank, Limited

450,000－－

450,000

Development Bank of Japan Inc.

550,000－－

550,000

The Norinchukin Bank

350,000－－

350,000

MUFG Bank, Ltd.

－

700,000－

700,000

Mizuho Bank, Ltd.

－

350,000－

350,000

Sumitomo Mitsui Banking
Corporation－

650,000－

650,000

Sumitomo Mitsui Trust Bank,
Limited

－350,000－

350,000

Resona Bank, Limited－

300,000－

300,000

Development Bank of Japan Inc.

－

650,000－

650,000

Mizuho Bank, Ltd.

－

200,000－

200,000

Sumitomo Mitsui Banking
Corporation－

400,000－

400,000

Sumitomo Mitsui Trust Bank,
Limited

－200,000－

200,000

Mizuho Trust & Banking Co., Ltd.

－

200,000－

200,000

Resona Bank, Limited－

200,000－

200,000

The Shizuoka Bank, Ltd.

－

200,000－

200,000

The Hiroshima Bank, Ltd.

－

200,000－

200,000

Aozora Bank, Ltd.

－

200,000－

200,000

The Joyo Bank, Ltd－

200,000－

200,000

MUFG Bank, Ltd.

－

500,000－

500,000

Aozora Bank, Ltd.
Nippon Life Insurance Company

LongtermloanspayableAmount ofAmount ofincrease during decrease during
periodperiod75

Averageinterest
rate(%)(Note 1)

Repayment due date

0.66500

May 31, 2029

0.24786

July 11, 2024

0.55000

February 26, 2027

0.85500

February 28, 2030

1.00500

November 29, 2030

0.85500

February 29, 2028

Repayment
methodUse ofproceeds

Security

Lump-sumpayment
at maturity(Note2)

Un-secured
Un-guaranteedCategory

Balanceat beginningof period

LenderAmount ofAmount ofincrease during decrease during
periodperiodBalanceat end ofperiodMizuho Bank, Ltd.

－

500,000－

500,000

The Norinchukin Bank－

500,000－

500,000

Shinkin Central Bank－

600,000－

600,000

The 77 Bank, Ltd.

－

500,000－

500,000

The Yamaguchi Bank, Ltd.

－

500,000－

500,000

Nippon Life Insurance Company－

500,000－

500,000

THE NISHI-NIPPON CITY BANK,
LTD.

－

500,000－

500,000

Sumitomo Mitsui Banking
Corporation－

300,000－

300,000

THE BANK OF FUKUOKA, LTD.

－

500,000－

500,000

THE JUHACHI-SHINWA BANK,
LTD.

－

500,000－

500,000

MUFG Bank, Ltd.

－

300,000－

300,000

MUFG Bank, Ltd.

－

600,000－

600,000

Mizuho Bank, Ltd.

－

500,000－

500,000

Sumitomo Mitsui Banking
Corporation－

600,000－

600,000

Sumitomo Mitsui Trust Bank,
Limited

－300,000－

300,000

Mizuho Trust & Banking Co., Ltd.

－

400,000－

400,000

Resona Bank, Limited－

500,000－

500,000

The Shizuoka Bank, Ltd.

－

200,000－

200,000

Mizuho Bank, Ltd.

－

500,000－

500,000

Mizuho Trust & Banking Co., Ltd.

－

400,000－

400,000

The Norinchukin Bank－

500,000－

500,000

Development Bank of Japan Inc.

－

1,000,000－

1,000,000

THE BANK OF FUKUOKA, LTD.

－

700,000－

700,000

Shinkin Central Bank－

200,000－

200,000

The 77 Bank, Ltd.

－

200,000－

200,000

The Yamaguchi Bank, Ltd.

－

200,000－

200,000

The Senshu Ikeda Bank, Ltd.

－

200,000－

200,000

The Hiroshima Bank, Ltd.

－

200,000－

200,000

Aozora Bank, Ltd.

－

200,000－

200,000

Averageinterest
rate(%)(Note 1)

Repayment due date

Repayment
methodUse ofproceeds

Security

Lump-sumpayment
at maturity(Note2)

Un-secured
Un-guaranteed

1.21000

February 28, 2031

Longtermloanspayable－700,000－

700,000

226,742,000

18,800,000

18,800,000

226,742,000

MUFG Bank, Ltd.
Total

1.11000

1.21000

0.26455

February 26, 2027

1.10500

February 28, 2030

(Note 1) Average interest rate is the weighted average interest rate during the period. Interest rates are rounded tosix decimal places. The interest rates for loans hedged by interest rate swap transactions used to hedge the risk ofinterest rate fluctuations are the interest rates reflecting the effect of the interest rate swaps.
(Note 2) Use of proceeds are purchase of assets and related expenses and repayment of loans payable.
(Note 3) 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 4) The following is the maturity schedule of long-term loans within five years of the balance sheet date.
(Thousand yen)
Long-term loans
payableDue in 1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

40,050,000

32,505,000

32,543,000

19,637,000

28,280,00076