Semi-Annual Report

14thFrom May 1, 2021 to October 31, 2021

Pictures on the cover

Akasaka Garden City (additional acquisition)
Prime Maison Shimokitazawa
Prime Maison Meguro
Prime Maison Ryogoku
In the FP 14th, SHR disposed nine properties and acquired three new residentials for the asset reshuffling. All of the three residentials acquired this time are
newly-built properties located in Tokyo 23 wards. We also additionally acquired Akasaka Garden City, an environmentally friendly large-scale officebuilding, in accordance with public offering in the beginning of the FP 15th.

Securities Code3309

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

Ⅰ Overview of SHR

To our Unitholders

A vision for Sekisui House Reit, Inc.

Managing assets to better provide
for people, society and the future
Maximize unitholder value
Provide high-quality social capital
A REIT that leads the way into an era of the 100-year lifespanFeatures
Priority investment in Prime Properties centering on“Strategic Location” and “High Quality”
Growth strategy that take full advantage of the versatile support
by Sekisui House Group
Adopting a mechanism that emphasizes unitholder profit
Strong financial foundation based on sound and stable financial operations
Designate “high quality” residential and commercial properties located in “strategic locations”
as “Prime Properties” and continue to invest primarily in Prime Properties.

Highlights of Business Results
Distribution per unit
Actual Distribution per Unit

FP ended October 2021 (FP 14th)

JPY

1,803

Business Results and Distribution
Fiscal Period

FP ended Apr. 2021
(FP 13th)
ActualFP ended Oct. 2021
(FP 14th)
ActualFP ending Apr. 2022
(FP 15th)
Forecast (Note)

In the fiscal period under review, SHR announced our first follow-on
public offering since June 2019 (2 years and 5 months ago). Additionally, we leveraged sponsor support to the hilt to acquire and dispose
assets, thereby strengthening our base for earnings through external
growth. On August 20, 2021, we disposed 9 residential properties,
which were expected to see deteriorating earnings due to the need for
major repairs and maintenance, for 17.1 billion yen. As a result, a
capital gain and loss of +2.4 billion yen was booked and an amount of
1.1 billion yen was added to internal reserves. Moreover, on September 1, 2021, we acquired 3 residential properties for 6.4 billion yen.
Furthermore, in the following period, we acquired an additional portion in the environmentally friendly office building Akasaka Garden
City for 21.3 billion yen on November 1, 2021, and we plan to acquire
2 residential properties for 14.8 billion yen on February 1, 2022.
As a result of the above, management performance for the fiscal period under review resulted in operating revenue of 17,291 million yen, operating income of 9,413 million yen, ordinary income of 8,520 million yen and net
income of 8,520 million yen, with the distribution per unit declared for the fiscal period of 1,803 yen. SHR’s asset
size is 527.7 billion yen (245.5 billion yen for office buildings, 242.9 billion yen for residential properties, and 39.3
billion yen for hotels). Although assets in the portfolio decreased by 8.0 billion yen from the end of the previous
fiscal period, the asset size of the portfolio is expected to increase to 563.8 billion yen considering the acquisitionof assets from the following fiscal period onward.
For the occupancy rate as of the end of the 14th fiscal period ended October 2021, office buildings at 97.4%,
residential properties at 96.8%, hotels at 100.0%, and the portfolio as a whole at 97.2% which continued tomaintain high levels.
SHR together with Sekisui House, a sponsor who aims to become a leading company in ESG management, continues to promote initiatives for ESG. As a major initiative in the fiscal period under review, we forecasted andevaluated risks and opportunities in our business based on risk scenarios in addressing climate change, andre-evaluated our current efforts toward resolving environmental issues. Also, in November 2021, 5 residential
properties acquired Green Certification and the percentage of properties that have acquired Green Certificationrose to 58.2%.
Although the spread of the COVID-19 pandemic and restrictions on movement through measures to prevent the
spread of the infection continue to affect economic activities, we will strive for steady operation in order to stabilize distributions and achieve steady growth.
I ask unitholders for your continued support and encouragement.

FP ending Oct. 2022
(FP 16th)
Forecast (Note)

Operating revenue(million yen)

15,055

17,291

14,748

14,848Operating income(million yen)

7,989

9,413

7,603

7,560

Ordinary income(million yen)

7,103

8,520

6,702

6,651

Net income(million yen)

7,103

8,520

6,701

6,650

Distribution per unit (yen)

1,675

1,803

1,698

1,688

(Note) The respective figures for “FP ending Apr. 2022 (FP 15th) Forecast” and ”FP ending Oct. 2022 (FP 16th) Forecast” are as of December 15, 2021 (the announcement
date of business results) calculated based upon certain assumptions. Actual Operating revenue, Operating income, Ordinary income, Net income, and Distribution
per unit may differ materially due to various factors. The above forecasts are not intended to be guarantees of business results or the actual amount of distribution.

1

I would like to express our sincere gratitude for your continued andloyal patronage.
I hereby report on the management status and financial results for the
14th fiscal period ended October 2021.

January 2022
Executive Director of Sekisui House Reit, Inc.

Overview of SHR ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙Contents

Atsuhiro Kida

1

Statement of Cash Distributions ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ 50

Financial Section (Audited) ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ 44

Statement of Cash Flow ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ 51

Financial Statement ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ 45

Notes to Financial Statements ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ 52

Balance Sheet ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ 45

Supplementary Schedules ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ 68

Statement of Income and Retained Earnings ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ 47

Independent Auditor’s Report ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ 78

Statement of Changes in Net Assets ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ 48

Unitholder Information ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ 81

2

Overview of SHR

TOPICSIn November 2021, conducted a public offering and
Secured funds to stabilize the DPU via capital gain and achieved
external growth by utilizing sponsor support

the asset size is expected to expand to JPY 563.8 billion
Overview of (planned) acquisition assets((Planned) Acquisition price basis / JPY billion)

Aim to expand asset size

Booked JPY +2.4 billion capital gain/loss on sale of which,
JPY 1.1 billion was retained in internal reserves
600

550

to JPY 600 billion as
mid- to long-term target

February 1, 2022
Plan to Acquire
2 Residential properties

September 1st
Acquired
3 Residential properties November 1st
August 20th
Additional Acquisition
Disposed
1 Office Building
9 Residential properties

535.8

527.7

(14.4)+21.3

0

FP ended Oct. 2021
(FP 14th)

As of Feb. 1, 2022
(expected)

Overview of the Fifth Public Offering

3

Acquired
September 1, 2021

Residential

Residential

Prime Maison
Shimokitazawa

Prime Maison
Meguro

563.8
+14.8

+6.4

FP ended Apr. 2021
(FP 13th)

Acquired
September 1, 2021

Offering method

Domestic primary offering

Number of investment units

Total 142,467 units
Primary offering : 137,500 units
Third-party allotment : 4,967 units

Offer price for the
primary offering

JPY 87,574

Issue amountJPY 84,744

Amount of funds raised

JPY 12.07 billion (third-party allotment : JPY 0.42 billion)

Issuance resolution date

October 18, 2021

Issuance condition
determination date

October 25, 2021

Payment datePrimary offering : November 1, 2021
Third-party allotment : November 29, 2021

Location
Acquisition priceAppraisal value (Note 1)
Appraisal NOI yield (Note 1)
Occupancy rate (Note 2)

Setagaya-ku, Tokyo
JPY 2,580 million
JPY 2,580 million
3.6%
98.3%

Location
Acquisition priceAppraisal value (Note 1)
Appraisal NOI yield (Note 1)
Occupancy rate (Note 2)

Acquired
September 1, 2021

AcquiredNovember 1, 2021

Residential

Office building

Prime Maison
Ryogoku

Akasaka Garden City
(additional acquisition)

Location
Acquisition priceAppraisal value (Note 1)
Appraisal NOI yield (Note 1)
Occupancy rate (Note 2)

Sumida-ku, Tokyo
JPY 1,530 million
JPY 1,540 million
3.9%
91.0%

Location
Acquisition priceAppraisal value (Note 1)
Appraisal NOI yield (Note 1)
Occupancy rate (Note 2)

Planned to be acquired
February 1, 2022

Planned to be acquired
February 1, 2022

Residential

Residential

Prime Maison
Nakameguro

Prime Maison
Itabashi

Location(Planned) Acquisition priceAppraisal value (Note 1)
Appraisal NOI yield (Note 1)
Occupancy rate (Note 2)

Meguro-ku, Tokyo
JPY 10,000 million
JPY 10,300 million
3.7%
94.7%

Location(Planned) Acquisition priceAppraisal value (Note 1)
Appraisal NOI yield (Note 1)
Occupancy rate (Note 2)

Meguro-ku, Tokyo
JPY 2,310 million
JPY 2,310 million
3.6%
92.6%

Minato-ku, Tokyo
JPY 21,300 million
JPY 21,700 million
3.6%
91.6%

Itabashi-ku, Tokyo
JPY 4,800 million
JPY 4,810 million
3.9%
86.6%

(Note 1) “Appraisal value” and “Appraisal NOI yield” are based on the most recent appraisal reports as of December 15, 2021 (the announcement date of business results).
For “Akasaka Garden City (additional acquisition)” is based on the appraisal report as of September 1, 2021, for the other five residential properties are based on
the appraisal reports as of the end of October 2021.
(Note 2) Occupancy rate is as of the end of October, 2021.

4

Overview of SHR

Overview of Portfolio
As of December 15, 2021 (announcement date of business results)

Number of owned properties

117

Total acquisition price

Properties

JPY

549.0

Total appraisal value (Note 1)(As of the end of October 2021 (FP 14th) )billion

JPY

605.5

Ratio of Prime Properties

Portfolio seismic PML rating(As of the end of November 2021)(acquisition price basis)(Surveyed in October 2021)

92.3

%

Usage type ratio (Note 2)
Hotels
7.2% (2 Properties )Ratio of area (Note 2) (Note 3)
Nagoya area
4.9% (13 Properties)

JPY 549.0
billion

Office Building
48.6%(7 Properties)

Others
4.2%(14 Properties)

15 years or more
23.3% (37 Properties)

Financial status%

Under 5 years
3.9%(10 Properties)

45.0

%

97.7%

98

96.7%

years

Greater Tokyo
65.4%(79 Properties)

May
2020

June

July

10 yearsor more but
less than 15 years
60.0%(54 Properties)%

Fixed interest rate debt ratio

97.3

Sep.

Oct.

Nov.

Dec.

Jan.
2021

FP 13th

Feb.

Mar.

Apr.

Office Building
May

June

July

Entire Portfolio
Aug.

Sep.

Oct.

Nov.

FP 14thAs of December 15, 2021 (announcement date of business results)

Asset

5 years or more but
less than 10 years
12.8% (17 Properties)

Operation status, etc.
P roperties in Osaka area and Nagoya area maintain stable operations with a 100.0%
occupancy rate.

Office Building s for properties in Greater Tokyo, some tenants have canceled their lease or returnedAspace, but some of the vacancies have been leased up. Moving forward we will focus
on backfilling space quickly.
T o a certain extent, vacancy risk has been factored into performance forecasts, andinternal reserves will be used to stabilize the DPU.

Japan Credit Rating Agency, Ltd. (JCR)

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

The occupancy rate remains stable at about 96% amid the COVID-19 pandemic.
F or occupancy rate by area, major cities nationwide have been strong, despite someweakness in Tokyo 23 wards.

Residential

 ccupancy rate by room type seems to have bottomed out despite the relatively weakO
situation in single type in Tokyo 23 wards.
 ent trends bottomed out from a deteriorating trend and are showing a gradual reR
covery trend.

AA- (Stable) ssuming a certain degree of recovery in domestic demand driven by the lifting ofAemergency declarations, progress in vaccinations, Go To travel, etc.

%

(Note 1) The appraisal value of Akasaka Garden City (additional acquisition portion) acquired on November 1, 2021 is not included.
(Note 2) “Hommachi Garden City” is counted as two properties –one for the office portion and one for the hotel portion- when calculating figures for “Usage type ratio”,
and is counted as one property when calculating figures for “Ratio of area” and “Building age ratio”.
(Note 3) “Three Major Metropolitan Areas” refer to “Greater Tokyo”, “Osaka area” and “Nagoya area”. The “Greater Tokyo” refers to Tokyo, Kanagawa Prefecture,
Chiba Prefecture, and Saitama Prefecture; the “Osaka area” refers to Osaka Prefecture, Kyoto Prefecture, Hyogo Prefecture, and Nara Prefecture; and the “Nagoya
area” refers to Aichi Prefecture. The same shall apply hereinafter.
(Note 4) Regarding the “Esty Maison Yokohama-aobadai”, “Building age ratio” is calculated as one property for each of the North Building and South Building due todifferent construction dates.

5

Aug.

FP 12thLong-term debt ratio

100.0

96.5%

Residence
94

97.4%
97.2%
96.9%

97.3%

96

12.0

Credit rating status

Total asset LTV (As of the end of October 2021 (FP 14th))

99.4%

Average
Building Age

95.8%
Osaka area
25.6%
(11 Properties)

100.0%(%)

100

Building age ratio (Note 2) (Note 4)

Three Major
Metropolitan
Areas

Asset Size

Residential
44.2%(109 Properties)

1.56

%

Trends of Occupancy RatebillionOccupancy rate

97.2

Operation Status

 ssuming to book only fixed rent as revenue from the 2 hotels in FP ending April 2022
A
(FP 15th) and FP ending October 2022 (FP 16th).

HotelsP lan to reverse internal reserves to stabilize the DPU and offset the negative impact
from revenue shortfalls corresponding to variable rent from The Ritz-Carlton, Kyoto.
 s SHR has concluded a master lease agreement, the occupancy rate has remained at 100.0% (may differ from the actual roomA
occupancy rate at the hotels).

6Overview of SHR

Portfolio Map

ESG Initiatives
As of December 15, 2021 (announcement date of business results)

79

Greater Tokyo
Office Building

3 properties

properties
Residential

76 properties
Sapporo-shi

Residential 3 properties

GC Shinagawa Gotenyama

SHAM and SHR contribute to a sustainable society by conducting real estate investment management with due
consideration given to ESG in accordance with the “Sustainable Vision” advocated by Sekisui House, the sponsor,
which aims to become a leading company in ESG management.
SHAM has established Sustainability Policy in order to connect its overall business operations with sustainability
objectives. The Sustainability Committee sets up targets, monitors compliance, evaluates the effect of measures
implemented, and investigates improvement measures on a regular basis.
In addition, SHR aims to promote sustainability initiatives through business activities with greater specificity, identifies materiality (important issues) and sets targets (KPIs) for solving each of them. We will pursue mutual sustainability between society and us by promoting initiatives to resolve materiality.

Major assessment from external organizations
Akasaka GC

2021 GRESB Assessment

PM Ginza East	
Acquired “3 Stars” in the “GRESB Rating” of 2021 GRESB Real Estate Assessment, rating offive levels based on relative assessment.
	Acquired highest rank “A” in 2021 GRESB Public Disclosure for two consecutive years.

MSCI ESG Ratings

PM Gotenyama West
Sendai-shi

Residential 1 property
Kanazawa-shi

Residential 1 property

MSCI ESG Ratings investigate, analyze, and rate the extent to which companies areappropriately managing the risks and opportunities related to ESG and provides acomprehensive corporate ESG rating of seven levels, ranging from “AAA” to“CCC”. SHR acquired “A” in 2021, which has been upgraded two ranks from “BB”
in 2019.

Initiatives we support
TCFD (Task Force on Climate-Related Financial Disclosures)
TCFD recommends that companies disclose their risks and opportunities related toclimate change. SHAM expressed agreement with TCFD recommendations in July
2020.

Shizuoka-shi

Residential 1 property

Fukuoka-shi

Residential 7 properties

Yokkaichi-shi

Residential 1 property

PRI (Principles for Responsible Investment)

Nagoya Area

13

Office Building

Osaka Area

11

Office Building
Residential
Hotelsproperties

1 property

Residential

PM Higashisakura

12 properties(Note)

United Nations Global Compact
Sekisui House Group expressed its commitment to respect human rights in the“Sekisui House Group Corporate Code of Conduct” and the “Sekisui House Group
Corporate Ethics Guidelines,” which are the explicit foundations of its corporate
activities. The Group also has expressed support for the 10 principles of the “United
Nations Global Compact”.

properties

3 properties
7 properties
2 properties

Continue issuance of ESG Report

Hommachi Minami GC

Hommachi GC

PM : Prime Maison GC : Garden City GA : Garden Avenue(Note) “Hommachi GC” is counted as two properties –one for the office portion and one for the hotel.

7

Hirokoji GA

SHAM agreed with PRI’s basic stance of advocating the incorporation of ESG issues
into investment-analysis and decision-making processes, SHAM ratified the PRI in
March, 2019.

PM Yuhigaoka

The Ritz-Carlton, Kyoto

SHR and SHAM issue an annual ESG Report to help readers understand our efforts to realize a sustainable society
and to engage with stakeholders. ESG Report, issued in January 2022, contains the results of scenario-analysis
based on TCFD recommendations, in addition to upgrading the CO2 emissions reduction targets. In order to enhance the reliability of ESG Report, we have also received third-party verification from SGS Japan Inc. for our environmental performance indicators.
8

Overview of SHR

ESG Initiatives
Environment

SocialIn recent years, climate change, such as global warming, has put the environment, society, and corporate activities
at great risk. We recognize that solving environmental problems, as typified by climate change, is one of our key
issues. Based on this understanding, we have set reduction targets for energy-related indicators and are promoting decarbonization efforts.

The significance of SHR in providing resilient buildings that can withstand disasters, and in preparing to minimize
damage in the event of a contingency is even greater. We believe that the role of us is to make the properties
owned by us a safe and secure space, and a comfortable place that improves the quality of life on a daily basis.

Reduction of CO2 emissions
SHR reviewed the materiality (important issues) and raised the reduction target for CO2 emissions intensity fromthe previous 20% reduction target in fiscal year 2030 compared to fiscal year 2018 to 50%. We will step up ourefforts to make environmental considerations even more effective for realizing a carbon neutral society.

Portfolio CO2 emissions intensity (Target year : FY 2030)
Target (KPI)

Result (FY 2020)

Reduce 50% (vs. FY 2018)

18.8% reduction (vs. FY 2018)

Strengthening Corporate Governance System
HK Yodoyabashi GA

Hommachi Minami GC

Effects of introducing LED lighting and energy efficient air conditioners
Expect to reduce annual CO2 emissions about 6.8% (vs. FY 2018)

Energy efficient air conditioner Total 3,154 units

Invest in green real estate

For the purpose of tightening examinations on transactions with interested parties, including the acquisition of
portfolio assets and the entrustment of property management services, SHAM has adopted frameworks underwhich each decision to be made by Investment Committee and Compliance Committee must be conditional upon
the attendance and assent by external members appointed from professionals who have no special interest withinterested parties of SHAM, such as Sekisui House; and preliminary review by Compliance Officer and Internal
Control Promotion Department, deliberations and resolution in respective meetings of Investment Committee andCompliance Committee, and deliberations and resolution for approval of the Board of Directors of SHAM, andconsent of SHR based on deliberations and resolution of the Board of SHR are required.
An example of decision making flow

Percentage of portfolio with green certifications (based on total floor area)
Target (KPI)

Remanded

Result (As of Dec. 15, 2021)

70% or more by the end of FY 2022

58.2%

Compliance
Officer & Internal
Control Promotion
Dep.

Proposing
Department

Current status of initiatives

Proposal	Acquired Certification for CASBEE for Real Estate for “S rank” in HK Yodoyabashi Garden Avenue	Newly acquired DBJ Green Building Certification in Sha Maison Stage Yahiro and other 4 properties	
Sha Maison Stage Yahiro
	
Sha Maison Stage Kanazawa
Nishiizumi
Sha Maison Stage Hino
Sha Maison Stage Hirose-dori[Bench withoven function]
Esty Maison
Kyobashi

Governance

SHR has been introducing LED lighting and energy efficient air conditioner, etc. in residential properties.
Total 62 properties[Backup supplies
for disaster]
Esty Maison Ojima
and others

Employees set aside the amount they want from their salaries
and Sekisui House adds the same amount of subsidies to makedonations.

Total number of introduction of environmental consideration facilities
LED lighting

SHR has installed and introduced equipment, etc., as appropriate, that will allow tenant companies and residents to spend timesafely and with peace of mind.
In addition, we regularly conduct tenant satisfaction surveys, andshare the survey results with property management companies
and other entities to develop measures to further improve services.

Contributions to society
Matching employee donations program :“Sekisui House Matching Program”

Current status of initiatives
The power supply and demand for two properties, HK Yodoyabashi Garden Avenue and Hommachi Minami Garden City, were
switched to electricity generated from renewable energy sources.
This makes the CO2 emission factor zero, thereby achieving actual
carbon-free operation when electricity is used. In residence areas
as well, we plan to successively switch electricity to renewable energy in the common areas, and we will work to reduce CO2 emissions over the medium to long term.

Providing safe, secure, and comfortable spaces	
Sha Maison Stage Akihabara

Investigation& approval

Rejected
Investment
Committee
Deliberation& resolution

Rejected
Compliance
Committee
Deliberation& resolution

Rejected
Board ofDirectorsof SHAM

Disapproved
Board ofDirectors of
SHR

Deliberation& resolution

Deliberation& approval

Attendance and assent by external members are required.

To promote diversity, SHR plans to propose the selection of a female supervisory director (Accountant) at the general
meeting of unitholders scheduled for January 26, 2022.
If the proposal is approved as proposed, the ratio of female executives will be 33.3%.

Please refer to the following link for SHR’s ESG information.

https://sekisuihouse-reit.co.jp/assets/pdf/ESG_Report_en.pdf
910Outline of asset management operation
1.

Developments in Asset Management in the Fiscal Period under Review(1) Brief History of the Investment Corporation

Sekisui House Reit, Inc. (“SHR”) was established on September 8, 2014 as an investment corporation investing

primarily in commercial properties including office buildings, hotels and retail and other properties, sponsoredby Sekisui House, Ltd. (“Sekisui House”), a leading homebuilder representing Japan with an establisheddevelopment and management track record also in the property development business. SHR was listed on theReal Estate Investment Trust Section of the Tokyo Stock Exchange, Inc. (“Tokyo Stock Exchange”) on December
3, 2014 (securities code: 3309).
Sekisui House Residential Investment Corporation (“SHI,” and collectively with SHR, the “Two Investment
Corporations”) was established on April 20, 2005 as an investment corporation investing primarily in residences
and retail properties, with the corporate name of JOINT REIT Investment Corporation, and listed on the Real
Estate Investment Trust Section of the Tokyo Stock Exchange on July 28, 2005. In March 2010, a collaboration
system was established with Sekisui House serving as the main sponsor and Spring Investment Co., Ltd. as joint
sponsor for the investment corporation, which was renamed from JOINT REIT Investment Corporation to Sekisui
House SI Investment Corporation in June 2010. Later, in June 2014, its Articles of Incorporation were revised to
set residences as the sole target of investment, and the corporate name was changed to Sekisui House SI
Residential Investment Corporation. Subsequently, in association with the shift to a structure in which Sekisui
House serves as the sole sponsor in March 2017, SHI was renamed to Sekisui House Residential Investment
Corporation in June 2017.
The Two Investment Corporations, each under the support of the Sekisui House Group(Note 1), had separately

conducted asset management 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 shall apply hereinafter.
(Note 2) In association with the Investment Corporation Merger, Sekisui House Asset Management, Ltd. (the “former SHAM”), theasset management company for SHI, and Sekisui House Asset Management, Ltd. (former name: Sekisui House Investment
Advisors, Ltd.) (“SHAM”), the asset management company for SHR, carried out an absorption-type merger as of the same dateas 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 to the current one.
(Note 3) “Residential properties” refer to real estate whose principal use is residence (including student dormitories, company housing,furnished residences with appliances which do not fall under serviced apartments (*1) (*2)). The same shall apply hereinafter.
(*1) “Serviced apartments” refer to furnished residences with appliances where a dedicated operator provides certain services
to users. The same shall apply hereinafter.
(*2) Some serviced apartments may fall under apartment houses as defined in the Building Standards Act (Act No. 201 of 1950,
as amended) (the “Building Standards Act”). The same shall apply hereinafter.
(Note 4) “Commercial properties” refer to real estate whose principal use is for office buildings, hotels and retail and other properties(including serviced apartments, housing for elderly with service, fee-based homes for the aged, and daycare centers (*); thesame shall apply hereinafter.) and other non-residential business purposes. The same shall apply hereinafter.
(*) Some housing for elderly with service, fee-based homes for the aged, and daycare centers may fall under apartment houses
as defined in the Building Standards Act. The same shall apply hereinafter.

11(2) Management Environment and Management Performancea. Management Environment

Although the Japanese economy during the fiscal period under review continues to pick up amid previously severe
conditions due to the effects of COVID-19, the pace of the recovery is weakening.

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 as of October 31, 2021 (the “end of the fiscal period”)
approximately 93% (acquisition price basis) of the portfolio. As for the residence, demand for single type for single
persons, which is easily affected by changes in the employment environment, remained on a weakening trend,but overall new contract rents remained above the previous rents, and occupancy rate showed signs of picking up
toward the end of the fiscal period. As for the office buildings, vacancy rate in the market is on an uptrend due tofactors such as the continuation of limited tenant relocation needs. However, the impact was minimal, and both
occupancy rate and rent level remained generally firm. On the other hand, for hotels that make up about 7% of
SHR’s portfolio (acquisition price basis), travel demand worldwide has stagnated due to restrictions on travel andimmigration in each country in response to the spread of COVID-19. Similarly, domestic demand has been
declining, so the harsh situation continues, and it is assumed that the recovery of demand for accommodation
will take some time.
In addition, in the real estate trading market, asset types that are less susceptible to the COVID-19 pandemic
tend to be preferred. Against the backdrop of worldwide monetary easing and other factors, domestic and overseas
investors continue to have a strong desire to acquire properties, and the high-quality properties that SHR
considers to be investment targets are scarce, and expected yields has remained at low levels.
b. Management Performance
Under the circumstances described in “a. Management Environment” above, SHR sold nine properties andacquired three new properties and reshuffled assets with the aim of enhancing its portfolio, further strengthening
its earnings base, recording gains on dispositions, and stabilizing the level of distributions by retaining a portionof them internally.
As a result, the number of properties SHR owned as of the end of the fiscal period under review was 117(comprising 109 residential properties and eight commercial properties) with an aggregate acquisition price(Note)of 527,786 million yen (242,966 million yen for residential properties and 284,820 million yen for commercial
properties).
Moreover, the occupancy rate of SHR’s investment assets as of the end of the fiscal period under review stood at
96.8% for residential properties, 97.9% for commercial properties and 97.2% for the entire portfolio against the
backdrop of the real estate leasing market as described above.
(Note) The “acquisition price” indicates the transaction price shown in the sales agreements for respective properties (excluding
consumption tax, local consumption tax and commission and other various expenses, rounded down to the nearest million yen).
For properties SHR succeeded from SHI through the Investment Corporation Merger, however, the value based on the appraisal
by real estate appraisers with April 30, 2018 as the appraisal date is used as the acquisition price, because the acceptance priceshould be the appraisal value upon the acquisition by SHR as such properties are accounted for by the purchase method with
SHR set as the acquiring corporation and SHI as the acquired corporation. The same shall apply hereinafter.

(3) Overview of Fund Procurement
a. Borrowings
SHR refinanced a total of 8,760 million yen with the aim of repaying borrowings due this fiscal period and also
issued a green bond (the 9th Investment Corporation Bond, 10-year maturity, total issuance of 2,000 million
yen) on May 19, 2021, which were used for early repayment of the long-term borrowings raised on November 30,

2020. In addition, on August 31, 2021, 3,000 million yen in short-term borrowings were early repaid using partof the disposition proceeds from the disposition of assets as of August 20, 2021.
As a result, the balance of interest-bearing liabilities as of the end of the fiscal period under review is 249,942
million yen and the ratio of total interest-bearing liabilities to total assets (“LTV (total assets basis)”) is 45.0%.
Furthermore, in order to ensure the stability and flexibility of financing measures, a commitment line agreement.
with a maxium amount of 15,000 million yen was signed again on October 25, 2021.

12

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.

Long-term issuer rating: AA

Japan Credit Rating Agency, Ltd.
(JCR)

Bond rating: AA

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

Issuer rating: AARating outlook: Stable

(JCR)

2.

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

Rating outlook: Stable(4) Overview of Business Performance and Distributions
Results in the fiscal period under review are operating revenue of 17,291 million yen, operating income of 9,413
million yen and ordinary income of 8,520 million yen, resulting in net income of 8,520 million yen. In addition,

concerning cash distributions, SHR decided to distribute 7,732 million yen, which is the amount of
unappropriated retained earnings after adding reversal of reserve for temporary difference adjustments (70million yen) and reversal of reserve for reduction entry (337 million yen) based on the application of special tax

treatment for investment corporations (Article 67-15 of the Act on Special Measures Concerning Taxation (ActNo. 26 of 1957, as amended) (the “Special Taxation Measures Act”)) and reserving reserve for reduction entry(1,195 million yen) stipulated in Article 65-7 of the Special Taxation Measures Act.

Date

Event

Unitholders’ capital(million yen)
Increase(Decrease)

Balance

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

Note

Balance

May 24, 2017

Public offering

9,661

109,70271,400965,400(Note 1)

June 12, 2017

Third-party allotment

487

110,1893,600

969,000(Note 2)

May 1, 2018

Split of investment units―

110,189

969,000

1,938,000(Note 3)

May 1, 2018

Allocation of investment
units through merger―

110,189

1,824,091

3,762,091(Note 4)

June 10, 2019

Public offering

37,162

147,351

501,500

4,263,591(Note 5)

July 9, 2019

Third-party allotment

1,858

149,21025,075

4,288,666(Note 6)(Note 1)
(Note 2)

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

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

[Changes in Market Price of Investment Securities]
The following table sets forth the fiscal period high and low (closing price) on the Tokyo Stock Exchange Real
Estate Investment Trust Section on which SHR investment securities are listed.
10th fiscal period 11th fiscal period 12th fiscal period 13th fiscal period 14th fiscal period
Fiscal period

13

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

High (yen)103,700

99,70078,70093,10098,600Low (yen)

77,20047,15062,50072,70086,20014

3.

Performance of Distribution, etc.
Distribution per unit for the fiscal period under review (the 14th fiscal period) is 1,803 yen. The policy is to4.

distribute 7,732 million yen, which is the amount of unappropriated retained earnings after adding reversal ofreserve for temporary difference adjustments (70 million yen) and reversal of reserve for reduction entry (337

million yen) in application of the special treatment of corporation tax under which the amount equivalent to
distribution of earnings is deductible from the taxable income of investment corporations as deductible expenses(Article 67-15 of the Special Taxation Measures Act) and reserving reserve for reduction entry (1,195 million yen)
stipulated in Article 65-7 of the Special Taxation Measures Act.

Fiscal period

Total amount of unappropriatedretained earnings (thousand yen)Amount of accumulated earnings(thousand yen)
Total amount of cash distribution(thousand yen)[Distribution per unit] (yen)Total amount of distribution of
earnings out of the total amountof cash distribution(thousand yen)[Distribution of earnings perunit] (yen)Total amount of refund ofinvestment in capital out of thetotal amount of cash distribution(thousand yen)[Amount of refund of investment
in capital per unit] (yen)Total distribution amount fromreserve for temporary difference
adjustments out of total amountof refund of investment in capital(thousand yen)[Distribution amount fromreserve for temporary difference
adjustments per unit out of
amount of refund of investment
in capital per unit] (yen)Total distribution amount from
distribution reducing unitholders’capital for tax purpose out of total
amount of refund of investment
in capital (thousand yen)[Distribution amount from
distribution reducing unitholders’capital for tax purpose out of
amount of refund of investment
in capital per unit] (yen)15

Future Management Policy(1) Future Trends Outlook
It is expected that the Japanese economy will recover, partly due to the effects of various policies andimprovements in the overseas economy, as it thoroughly takes measures to prevent the spread of COVID-19 andpromotes vaccinations. However, paying close attention to the downside risks due to impacts throughout the

supply chain is necessary. In addition, it is necessary to closely monitor the effects of trends in infection andfluctuation in financial and capital markets both in Japan and overseas. Against this background, SHR believes
that it is necessary to continue to pay close attention to the possibility of a decline in the influx of population

10th fiscal
11th fiscal
12th fiscal
13th fiscal
14th fiscal
periodperiodperiodperiodperiodFrom: May 1,
From: Nov. 1,
From: May 1,
From: Nov 1,
From: May 1,
2019
2019
2020
2020
2021
To: Oct. 31, 2019 To: Apr. 30, 2020 To: Oct. 31, 2020 To: Apr. 30, 2021 To: Oct. 31, 2021

into the Tokyo metropolitan area, which was affected by COVID-19, and the impact of the new normal on tenant

trends in residential, which is the living hub of the real estate leasing market. Concerning office buildings, which

are operation bases in the real estate leasing market, SHR anticipates that vacancy rates in the office market
are trending upward and that rents will remain weak due to concerns about the economic downturn associatedwith the impact of COVID-19 and the expansion of remote work.

As for hotels, SHR believes that demand for hotel rooms is expected to remain severe for the time being due tofactors such as the decrease in the number of foreign tourists visiting Japan due to immigration restrictions in

7,405,454

6,991,331

6,992,995

7,103,009

8,520,020

775,495－－

103,708

1,195,848

each country and a decline in the number of domestic tourists. In the real estate transaction market, SHR

6,994,814

7,140,628

7,226,402

7,183,515

7,732,464

amid accommodative financial conditions due to the COVID-19 pandemic.

[1,631][1,665][1,685][1,675][1,803]

6,994,814

7,140,628

7,226,402

7,183,515

7,732,464[1,631][1,665][1,685][1,675][1,803]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

believes that the situation in which expected yields remain at low levels will continue for the foreseeable future(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 through theinitiatives of SHAM on its own.

Concerning main investment target areas in Japan for residential properties, SHR has set Greater Tokyo(Note 1)
as the core investment area with a focus on the Tokyo 23 wards, which are believed to have a number of prime
properties that offer locations accommodating residents’ needs as well as excellent basic functions as a residence

―

―

―

―

―

including comfort and safety and such and are expected to see strong leasing demand and supplies of prime

properties. In addition, SHR will invest in other major cities throughout Japan outside of Greater Tokyo including
government designated cities as well as their surrounding commutable areas, where networks of Sekisui Houseand Six Sekisui House Real Estate Companies(Note 2) can be fully utilized.
SHR has set the three major metropolitan areas(Note 1) with three large cities, namely the Tokyo 23 wards, Osaka
[―]

[―]

[―]

[―]

[―]

City and Nagoya City, all of which SHR has knowledge in the course of developments by Sekisui House, as thecore investment areas in Japan for commercial properties, with a focus on the three large cities, in which SHR

can expect stable management against the backdrop of solidified demand resulting from being bases for tenantcompanies’ business activities. In addition, major cities throughout Japan other than the three major
metropolitan areas are set as investment areas.
―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

SHR has executed a sponsor support agreement with Sekisui House. This agreement provides for utilization of
the urban redevelopment business track record and know-how of Sekisui House, allowing SHR to seek fromSekisui House property acquisition support for external growth (pipeline support). Specifically, such support will(a) grant SHR preferential negotiation rights with regard to the sale of domestic real estate, etc. owned ordeveloped by Sekisui House, (b) provide SHR with information on real estate, etc. owned or developed in Japanby third parties, (c) provide SHR with warehousing functions, and (d) provide SHR with support for theredevelopment of owned properties.
Furthermore, SHR has concluded agreements concerning preferential negotiation rights (and others) with 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.

16Sekisui House and Sekisui House Real Estate Group(Note 3) possess (a) property management (“PM”) skills basedon their relationship with tenants, (b) know-how as a real estate developer to maintain/improve real estate value
through large-scale repair, renovation/value enhancement, redevelopment, etc., and (c) know-how on developing
various types of master leasing businesses. In relation to management of owned assets, by concluding a sponsor

support agreement with Sekisui House, SHR and SHAM can seek (i) technologies and know-how that contributeto the improvement of tenant satisfaction or other factors, including energy efficiency and eco-friendliness, that
contribute to the renovation/value enhancement of properties, (ii) personnel support, including provision of knowhow required for the operation of SHR, and (iii) support in areas such as negotiation of master lease agreementswith regard to commercial properties.
(Note 1) The “three major metropolitan areas” refer to “Greater Tokyo,” the “Osaka area” and the “Nagoya area,” where “Greater
Tokyo” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture, the “Osaka area” refers to Osaka

Prefecture, Kyoto Prefecture, Hyogo Prefecture and Nara Prefecture and the “Nagoya area” refers to Aichi Prefecture. The
same shall apply hereinafter.
(Note 2) “Six Sekisui House Real Estate Companies” is a collective name for Sekisui House Real Estate 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 and are core companies of real estate unit of the Sekisui House Group operating nationwide. The same shall apply
hereinafter.
(Note 3) “Sekisui House Real Estate Group” refers to a group of companies comprised of Six Sekisui House Real Estate Companies as
the core, and of its subsidiaries and affiliates. The same shall apply hereinafter.

(3) Financial Strategy
SHR has adopted as its policy the conduct of stable and sound financial operations in order to secure stableearnings over the medium to long term and enhance unitholder value. Specifically, the policy is to form strong
and stable business relationships with leading domestic financial institutions, centering on megabanks, bolsteredby the creditworthiness of the sponsor, Sekisui House, and also to reduce refinancing risks and risks offluctuations 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 thetime being at around 50% with a focus on securing its funding capabilities.

Furthermore, SHR will work to diversify its sources for direct and indirect financing, such as by issuing

5.

Significant Subsequent Events(1) Issuance of new investment units

SHR resolved at the Board of Directors meetings held on October 18, 2021 and October 25, 2021 to issue newinvestment units, and the payment of new investment units through public offering and third-party allotment

was completed on November 1, 2021 and November 29, 2021, respectively. As a result, the total amount ofunitholders’ capital was 161,283,304,673 yen and the number of investment units issued and outstanding was
4,431,133 units.
Regarding the issuance of new investment units through third-party allotment due to secondary offering via overallotment, the allottee has notified SHR that they will apply for a portion of the number of investment units
scheduled to be issued. As a result, the number of new investment units and the total amount to be paid (issue
amount) related to the third-party allotment have been changed as follows, respectively.
a. Issuance of new investment units through public offering
137,500 units
Number of investment units issued:
Issuue price:

87,574 yen per unit

Total amount of issue price:

12,041,425,000 yen

Amount to be paid in (issue amount):

84,744 yen

Total amount to be paid in (total issue amount): 11,652,300,000 yen
Payment date:November 1, 2021

b. Issuance of new investment units by way of third-party allotment
4,967 units (Planned to be issued: 6,875 units)
Number of investment units issued:
Amount to be paid in (issue amount):

84,744 yen per unit

Total amount to be paid in (total issue amount): 420,923,448 yen (Planned total amount to be paid: 582,615,000 yen)
Payment date:November 29, 2021

Allottee:

Nomura Securities Co., Ltd.

investment 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.

c. Use of the funds to be procured
The funds raised through the issuance of new investment units through the public offering described above will
be used to partially fund the acquisition of Akasaka Garden City, which was additionally acquired on November
1, 2021, and the funds raised through the issuance of new investment units through third-party allotment will
be used to partially fund the acquisition of Prime Maison Nakameguro and Prime Maison Itabashi, which arescheduled to be acquired on February 1, 2022.
(Reference Information)(1) Assets Acquisition
SHR has concluded the Trust Beneficiary Interest Trading Agreement with the decision to acquire two
residentials dated July 30, 2021 and one office building dated October 18, 2021 as follows. The acquisition of one
office building was completed on November 1, 2021, and the acquisition of two residentials is scheduled to becompleted on February 1, 2022.

17

18

Property name

Akasaka Garden City
(additional acquisition
portion) (Note)
Prime Maison
Nakameguro
Prime Maison Itabashi

Type of use

Location

OfficeBuilding

Minato-ku,
Tokyo

Residence(Planned)acquisition
price( million yen )(Planned)acquisitiondate

21,300Meguro-ku,
TokyoItabashi-ku,
Tokyo

10,0004,800

36,100(Planned) total acquisition price(Note 5) SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of the above
borrowings (in whole or in part) in the period between the drawdown date and the repayment date.

Seller(Note 6) The borrowing from MUFG Bank, Ltd. is ESG Loan for J-REIT.

November 1,
2021

Yagenzaka SPC

b. Floating Interest Rate Borrowing

February 1,
2022

Sekisui House,
Ltd.

(Note 1)－Category

MUFG Bank,
Ltd. (Note 6)
MizuhoBank, Ltd.

－

（Note）SHR has acquired 65.45% of the quasi-co-ownership interest of the trust beneficiary interest in real estate with respect to thecompartmentalized ownership interest in all of the exclusively-owned portions of the basement 1st to 4th above ground and 11th
to 19th floors of the building of “Akasaka Garden City”, as well as the accompanying right of site (ratio of right of site:662,768/1,000,000 (approximately 66.3%)) at an acquisition price of 28,700 million yen on June 10, 2019.
SHR additionally acquired the trust beneficiary interest in all of the exclusively-owned portions of the 5th to 9th floor and theaccompanying right of site (ratio of right of site: 273,490/1,000,000 (approximately 27.3%)) and in 96.05% of co-ownership of all of
the exclusively-owned portions of the 10th floor and the accompanying right of site (ratio of right of site: 54,698/1,000,000(approximately 5.5%)) on November 1, 2021.

(2) Borrowing of Funds
SHR conducted the following borrowing of funds on November 30, 2021 for use as repayment funds of a longterm borrowing (17,000 million yen) which was due for repayment on the same day.
a. Fixed Interest Rate Borrowing
LenderCategory(Note 1)

MUFG Bank,
Ltd.
(Note 6)

Longterm

MizuhoBank, Ltd.
Sumitomo
Mitsui
Banking
Corporation
Sumitomo
MitsuiTrust Bank,
LimitedResona Bank,
Limited.
Development
Bankof Japan Inc.
The
Norinchukin
Bank

Total

Borrowingamount(million
yen)

1,060

Interest
rate(Note2)(Note 3)

Drawdown
date

340

0.460%

1,400(Note 4)

November30, 2021

Borrowingbased onindividual loan
agreement,
dated
November25, 2021.
The lenders
under the loan
agreement are
as indicated to
the left of thistable.

－

－

760

1,500

Repayment
date

Borrowing
method800

May 31,
2028

Repayment
method(Note 5)Lump-sum
repayment

Security－

at maturity

UnsecuredandUnguaranteed

－

－

－

Sumitomo
Mitsui
Banking
Corporation

Longterm

MUFG Bank,
Ltd. (Note 6)
MizuhoBank, Ltd.

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

Total

700
6,560

Lender(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 first interest payment date will be the last day of May 2022. 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 will be the

Borrowingamount(million
yen)

1,550
1,270

1,180

Interest
rate(Note2)(Note 3)

Base rate(JBA 1month
Japanese
Yen
TIBOR)
plus
0.190%

Drawdown
date(Note 7)

2,490
790

1,760

500

Base rate(JBA 3month
Japanese
Yen
TIBOR)
plus
0.405%

November30, 2021(Note 8)(Note 9)Borrowing
methodBorrowingbased onindividual
loan
agreement,
dated
November25, 2021.
The lenders
under theloan
agreement
are asindicated to
the left ofthis table.

Repayment
date(Note 4)

Repayment
method(Note 5)

Security

November
30,
2023

Lump-sum
repayment

at maturity

UnsecuredandUnguaranteed－－

November29, 2030

900
10,440－－－－(Note 1) MUFG Bank, Ltd., Mizuho Bank, Ltd., and Sumitomo Mitsui Banking Corporation are arrangers of the above borrowings.
(Note 2) The borrowing expenses and other charge payable to the lenders are not included.
(Note 3) The base rate applicable to the calculation period for the interest payable on an interest payment date shall be the Japanese
Yen TIBOR (Tokyo Inter Bank Offered Rate), corresponding to the calculation period of the interest, two business days prior to
the immediately preceding relevant interest payment date. The Japanese Yen TIBOR is published by 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 which corresponds to the concerned period
calculated based on the method provided for in the relevant individual loan agreement. For changes in the base rate (being theJapanese Yen TIBOR published by JBA), please check the website of JBA TIBOR Administration(http://www.jbatibor.or.jp/english/rate/). In addition, SHR plans to effectively fix the interest rate of a portion of the above
borrowings through interest rate swap agreement. There will be an announcement regarding the interest rate fixed on thebasis of the interest rate swap agreement to be arranged, once such details have been determined.
(Note 4) Where the repayment date is not a business day, such date will be the immediately following business day or (if the immediately
following business day falls in the next calendar month) the immediately preceding business day.
(Note 5) 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 6) The borrowing from MUFG Bank, Ltd. is ESG Loan for J-REIT.
(Note 7) The first interest payment date will be the last day of December 2021. Subsequent interest payment dates will be the last dayof 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 8) The first interest payment date will be the last day of February 2022. Subsequent interest payment dates will be the last dayof every three months 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 9) The interest rate swap agreement effectively fixed the interest rate at 0.602%.

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 the immediately
following business day falls in the next calendar month) the immediately preceding business day.

19

20

Outline of the investment corporation
1.

3. Matters Concerning Directors, etc.
(1) Name and other information of executive director, supervisory directors and an independent auditor

The following table sets forth information on the executive director, supervisory directors and an independent

Status of Capital
Fiscal period

Total number of investment units

20,000,000

20,000,000

20,000,000

20,000,000

20,000,000

4,288,666

4,288,666

4,288,666

4,288,666

4,288,666

Unitholders’ capital (million yen)

149,210

149,210

149,210

149,210

149,210

Number of unitholders (persons)

18,986

19,23019,27918,942

18,637authorized (units)
Total number of investment units
issued and outstanding (units)

2.

auditor of SHR.

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
10th fiscal period 11th fiscal period 12th fiscal period 13th fiscal period 14th fiscal period(Oct. 31, 2019)(Apr. 30, 2020)(Oct. 31, 2020)(Apr. 30, 2021)(Oct. 31, 2021)

Position

Executive
Director

Number ofunits owned(units)973,034

22.69

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

725,159

16.91

Sekisui House, Ltd.

200,750

4.68

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

154,911

3.61

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

132,291

3.08

SMBC Nikko Securities Inc.

131,080

3.06

STATE STREET BANK WEST CLIENT - TREATY 505234

61,823

1.44

JP MORGAN CHASE BANK 385781

52,0301.21

JAPAN SECURITIES FINANCE CO., LTD..

49,126

1.15

THE SHINKUMI FEDERATION BANK

42,6140.99

2,522,818

58.83

Total
(Note)

Total amount of compensation foreach position during period(thousand yen)

Director,

Atsuhiro Kida

Sekisui House Asset Management, Ltd.

―

Accountant Office
Shigeru Nomura

Outside Director, Eiken Chemical Co., Ltd.

1,800

Member of Corporate Revitalization Committee,

Supervisory

The Resolution and Collection Corporation (RCC)

Director

Outside Director, QB Net Holdings Co., Ltd.
Tatsushi Omiya

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

Custody Bank of Japan, Ltd. (Trust Account)

Key concurrently held position, etc.

President, Shigeru Nomura Certified Public

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.

Name

Name

Lawyer, Lex Law OfficeOutside Auditor, QB Net Co., Ltd.

1,800

Outside Director, BTC Corporation
Independent

Ernst & Young

AuditorShinNihon LLC―

19,200(Note 2)

(Note 1) None of the executive director or supervisory directors owns SHR investment units in their own name or in the name of anotherperson. In addition, supervisory directors may be officers of other corporations other than those stated above, but none of suchcorporations, including those stated above, has vested interest in SHR.
(Note 2) The total amount of compensation for the independent auditor, as stated above, is an approximation and includes compensation for
preparing comfort letters for the issuance of the Ninth Series Unsecured Investment Corporation Bonds in May 2021, as well ascompensation for auditing matters related to English financial statements.

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

4.

Matters Concerning the Director’s Liability Insurance Contract

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

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

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

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

21

22

5.

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

1.

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)

Condition of investment assets
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 13th fiscal
period(Apr. 30, 2021)
Type of asset

Asset category

Geographical area, etc.

Total amountheld(million yen)
(Note 1)

Mitsubishi UFJ Trust and Banking Corporation

MUFG Bank, Ltd.

As of the end of 14th fiscal
period(Oct. 31, 2021)
As a
As a percentage Total amountpercentage ofof total assets
heldtotal assets(%)(million yen)(%)
(Note 2)
(Note 1)
(Note 2)

Greater Tokyo

186,27033.5

181,971

32.7

Other areas

60,57910.956,50910.2

Three major
metropolitan areas

277,52649.9

276,725

49.8

―

―

―

―

Total of real estate in trust

524,375

94.2

515,206

92.7

Deposits and other assets

32,193

5.8

40,438

7.3

Total amount of assets

556,569

100.0

555,644

100.0

Residential
properties

Real estate intrust

Commercial
properties

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

2.

Major Portfolio Assets

The following table sets forth an overview of the major portfolio assets (top ten properties by book value at the end of
period) of SHR as of the end of the fiscal period under review.
Name ofreal estate, etc.

Book value
at the endof period(million yen)
(Note 1)

Leasablearea(m2)

Leased area(m2)

(Note 2)

(Note 3)

Occupancy
rate(%)(Note 4)

As a percentage of
total propertyrelated operating
revenue(%) (Note 5)

Usage type

Garden City Shinagawa Gotenyama

70,11938,577.99

36,861.13

95.5

13.1

Officebuilding

Gotenyama SH Building

49,60619,999.97

19,999.97

100.0

7.5

Officebuilding

Hommachi Minami Garden City

42,48329,657.53

29,657.53

100.0

9.0

Officebuilding

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

36,43917,006.94

17,006.94

100.0

6.2

Officebuilding

Akasaka Garden City (Note 7)

28,70012,472.81

10,947.17

87.8

4.3

Officebuilding

The Ritz-Carlton, Kyoto(Note 8)

22,16911,496.08

11,496.08

100.0

1.5

Hotel

Hommachi Garden City
(Hotel portion)(Note 6)

16,81918,092.98

18,092.98

100.0

2.8

Hotel

Esty Maison Ojima

8,343

9,905.97

9,551.15

96.4

1.7

Residence

Esty Maison Kinshicho II

7,957

9,469.65

9,107.84

96.2

1.5

ResidencePrime Maison Shirokanedai Tower

7,939

6,772.89

6,389.07

94.3

1.6

Residence

290,576

173,452.81

169,109.86

97.5

49.2

―

Total

(Note 1) “Book value at the end of period” refers to the depreciated book value of each property as of the end of the fiscal period under review,

23

24

rounded down to the nearest million yen. The same shall apply hereinafter.
(Note 2) “Leasable area” refers to the floor area presumably available for leasing based on the lease agreement or building drawing, etc. foreach property that is valid as of the end of the fiscal period under review, rounded down to the second decimal place. In cases where
the properties SHR owns are co-ownership interest or quasi co-ownership interest of trust beneficiary interests in real estate forrespective properties, the figure indicates the value obtained by multiplying the leasable area of real estate or real estate in trust (orthe leasable area of exclusively-owned portions for properties under compartmentalized ownership interest) by the ratio of theownership interest owned by SHR or trustees. The same shall apply hereinafter.
(Note 3) “Leased area” refers to the sum total of the leased area indicated in the respective lease agreements, which are valid as of the end of
the fiscal period under review, with the end tenants for each of the properties or the leased area based on building drawings. However,the leasable area of each property is indicated in case fixed-rent type master lease agreements have been concluded with the master
lease companies, regardless of whether lease agreements have been concluded with the end tenants. For Akasaka Garden City and
The Ritz-Carlton, Kyoto, the figure indicates the area corresponding to the quasi co-ownership interest owned by SHR. The same
shall apply hereinafter.
(Note 4) “Occupancy rate” refers to the ratio of leased area to leasable area of each property as of the end of the fiscal period under review,rounded to the nearest first decimal place. The figure indicated in the “Total” column indicates the ratio of the sum total of leased
area of each property to the sum total of leasable area of each property, rounded to the nearest first decimal place.
(Note 5) Figures under the heading “As a percentage of total property-related operating revenue” indicate the ratio of property-related
operating revenue of each property for the fiscal period under review to total property-related operating revenue of each property of
SHR’s entire portfolio for the fiscal period under review, rounded to the nearest first decimal place.
(Note 6) “Hommachi Garden City” comprises the portions used as office building and retail property (“Hommachi Garden City (Office building
portion)”) and the portions used as a hotel (“Hommachi Garden City (Hotel portion)”.) In this document, the overview and otherinformation regarding the property may be described separately for the Office building portion and the Hotel portion. The same shallapply hereinafter.
(Note 7) For “Akasaka Garden City”, SHR owns 65.45% quasi co-ownership interest of trust beneficiary interest in real estate regarding thecompartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor under ground through 4th floor above
ground and 11th floor through 19th floor above ground of the building, as well as the accompanying right of site (ratio of right of site:662,768/1,000,000 (or approximately 66.3%)), and the figures indicate the value corresponding to the quasi co-ownership interest.
The same shall apply hereinafter.
(Note 8) For “The Ritz-Carlton, Kyoto”, SHR owns 49% quasi co-ownership interest of trust beneficiary interest in real estate for the property
as of the end of the fiscal period under review. The figures indicate the value corresponding to the quasi co-ownership interest SHR
owns. The same shall apply hereinafter.

25

3.

Details of Assets (Real Estate, etc.) in the Portfolio

The following table sets forth an overview of the properties owned by SHR as of the end of the fiscal period underreview.
Usage
type

Property
number(Note 1)

R-001

Residence

Name ofreal estate, etc.
Esty Maison Ginza

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

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

Real estate trust
beneficiary interests

6,471

7,320

1,763

1,940

R-002

Esty Maison Azabunagasaka

Minato-ku, Tokyo

Real estate trust
beneficiary interests

R-003

Esty Maison Ebisu II

Shibuya-ku, Tokyo

Real estate trust
beneficiary interests

2,020

2,340

R-004

Esty Maison Ebisu

Shibuya-ku, Tokyo

Real estate trust
beneficiary interests

918

920

R-005

Esty Maison Kanda

Chiyoda-ku, Tokyo

Real estate trust
beneficiary interests

1,554

1,850

R-006

Esty Maison Kitashinjuku

Shinjuku-ku, Tokyo

Real estate trust
beneficiary interests

1,539

1,770

R-007

Esty Maison
Asakusakomagata

Taito-ku, Tokyo

Real estate trust
beneficiary interests

2,092

2,450

R-008

Esty Maison Kawasaki

Kawasaki-shi,
Kanagawa

Real estate trust
beneficiary interests

2,403

2,760

R-010

Esty Maison Kameido

Koto-ku, Tokyo

Real estate trust
beneficiary interests

1,495

1,880

R-011

Esty Maison Meguro

Meguro-ku, Tokyo

Real estate trust
beneficiary interests

1,072

1,270

R-012

Esty Maison Sugamo

Toshima-ku, Tokyo

Real estate trust
beneficiary interests

1,595

1,830

2,956

3,070

R-013

Esty Maison Kyobashi

Osaka-shi, Osaka

Real estate trust
beneficiary interests

R-014

Esty Maison Hakuraku

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

891

976

R-015

Esty Maison Minamihorie

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,040

1,140

R-016

Esty Maison Gotanda(Note 4)

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

3,039

3,500

R-017

Esty Maison Oisendaizaka

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,725

3,000

R-018

Esty Maison
Shinagawa Seaside

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,116

2,470

R-019

Esty Maison Minamiazabu

Minato-ku, Tokyo

Real estate trust
beneficiary interests

1,285

1,380

R-021

Esty Maison Kawasaki II

Kawasaki-shi,
Kanagawa

Real estate trust
beneficiary interests

1,909

2,420

R-022

Esty Maison Azabujuban

Minato-ku, Tokyo

Real estate trust
beneficiary interests

2,714

3,040

R-023

Esty Maison Itabashihoncho

Itabashi-ku, Tokyo

Real estate trust
beneficiary interests

902

1,030

R-027

Esty Maison
Musashikoyama(Note 5)

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,015

1,190

R-028

Esty Maison Sendagi(Note 6)

Bunkyo-ku, Tokyo

Real estate trust
beneficiary interests

678

800

26

Usagetype

Property
number(Note 1)

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

Estimatedvalue at theend of period(million yen)

Usage
type

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

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

R-030

Esty Maison Hakatahigashi

Fukuoka-shi,
FukuokaR-033

Prime Maison
Musashinonomori

Kodaira-shi,
Tokyo

Real estate trust
beneficiary interests

Real estate trust
beneficiary interests

2,233

2,560

R-059

Esty Maison Toritsudaigaku

1,778

2,120

R-060

Esty Maison
Musashikoyama II

1,433

1,660

R-061

Esty Maison Nakano

Nakano-ku, Tokyo

Real estate trust
beneficiary interests

Book value
at the end of
period(million yen)

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

Real estate trust
beneficiary interests

841

919

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

999

1,130

1,820

2,010

R-034

Prime Maison Higashisakura

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

R-035

Prime Maison Kayabakoen

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

824

925

R-062

Esty Maison Shinnakano

Nakano-ku, Tokyo

Real estate trust
beneficiary interests

984

1,070

R-036

Esty Maison Sangenjaya II

Setagaya-ku,
TokyoReal estate trust
beneficiary interests

762

871

R-063

Esty Maison Nakanofujimicho

Nakano-ku, Tokyo

Real estate trust
beneficiary interests

953

1,050

R-037

Esty Maison Itabashi C6

Itabashi-ku,
TokyoReal estate trust
beneficiary interests

2,478

2,830

R-064

Esty Maison Tetsugakudo

Nakano-ku, Tokyo

Real estate trust
beneficiary interests

1,114

1,240

R-038

Sha Maison Stage
Hakata(Note 7)

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,405

2,740

R-065

Esty Maison Koenji

Suginami-ku,
TokyoReal estate trust
beneficiary interests

1,127

1,270

R-039

Esty Maison Kinshicho

Sumida-ku,
TokyoReal estate trust
beneficiary interests

1,208

1,350

R-066

Esty Maison Oshiage

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

2,410

2,670

R-040

Esty Maison Musashikoganei

Koganei-shi,
Tokyo

Real estate trust
beneficiary interests

1,747

2,090

R-067

Esty Maison Akabane

Kita-ku, Tokyo

Real estate trust
beneficiary interests

3,131

3,550

R-041

Prime Maison Gokiso

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,968

2,140

R-068

Esty Maison Oji

Kita-ku, Tokyo

Real estate trust
beneficiary interests

1,577

1,850

R-042

Prime Maison Yuhigaoka

Osaka-shi, Osaka

Real estate trust
beneficiary interests

875

1,060

R-069

Prime Maison Waseda

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

1,512

1,810

622

671

R-070

Prime Maison Hatchobori

Chuo-ku, Tokyo

Real estate trust
beneficiary interests

1,390

1,620

R-043

Prime Maison Kitatanabe

Osaka-shi, Osaka

Real estate trust
beneficiary interests

R-044

Prime Maison Momochihama

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

1,912

2,150

R-071

Prime Maison Jimbocho

Chiyoda-ku,
Tokyo

R-045

Esty Maison Akihabara

Taito-ku, Tokyo

Real estate trust
beneficiary interests

1,907

2,060

R-072

Prime Maison
Gotenyama East

Shinagawa-ku,
TokyoShibuya-ku,
TokyoReal estate trust
beneficiary interests

3,386

Sha Maison Stage Akihabara

Chiyoda-ku,
Tokyo

Chuo-ku, Tokyo

Real estate trust
beneficiary interests

6,058
1,069

1,160

R-046
R-047

Esty Maison Sasazuka
Prime Maison Ginza East

3,780
7,000

Residence

R-073

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

1,877

2,070

2,874

3,200

Real estate trust
beneficiary interests

542

608

Esty Maison Aoi

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

2,361

2,510

R-075

Esty Maison Yakuin

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,571

2,570

R-074

R-048

Prime Maison Takami

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

R-049

Prime Maison Yadaminami

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

853

891

R-076

Esty Maison Kinshicho II

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

7,957

9,500

R-050

Prime Maison Teriha

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

1,178

1,320

R-077

Esty Maison Ojima

Koto-ku, Tokyo

Real estate trust
beneficiary interests

8,343

10,200Esty Maison
Higashishirakabe

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,622

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

2,170

2,180

R-052

Esty Maison Sengoku

Bunkyo-ku,
TokyoReal estate trust
beneficiary interests

1,331

1,470

R-079

Esty Maison Tsurumai

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

4,545

4,960

R-053

Esty Maison Daizawa

Setagaya-ku,
TokyoReal estate trust
beneficiary interests

2,223

2,510

R-080

Prime Maison Morishita

Koto-ku, Tokyo

Real estate trust
beneficiary interests

1,841

2,130

R-054

Esty Maison Togoshi

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,724

1,950

R-081

Prime Maison Shinagawa

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,895

2,170

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,617

Real estate trust
beneficiary interests

3,052

3,120

2,377

Real estate trust
beneficiary interests

1,820

1,890

Real estate trust
beneficiary interests

1,197

1,180

Real estate trust
beneficiary interests

2,163

2,424

R-051

R-055

Esty Maison Nishitemma
Esty Maison Shirokanedai

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

R-057

Esty Maison Higashishinjuku

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

1,608

R-058

Esty Maison Motoazabu

Minato-ku, Tokyo

Real estate trust
beneficiary interests

1,512

R-056

27

Name ofreal estate, etc.

1,730

1,730

R-078

R-082

Prime Maison Fujimidai

Prime Maison Odorikoen

Sapporo-shi,
Hokkaido

R-083

Prime Maison Minami 2-jo

Sapporo-shi,
Hokkaido

1,860

R-084

Prime Maison
Kamokamogawa

Sapporo-shi,
Hokkaido

1,710

R-085

Prime Maison
Central Park(Note 8)

Fukuoka-shi,
Fukuoka

R-086

Sha Maison Stage Yahiro

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

1,825

2,030

Real estate trust
beneficiary interests

4,265

5,170

Real estate trust
beneficiary interests

1,012

956

2,930

R-087

Prime Maison Ebisu

Shibuya-ku,
Tokyo

R-088

Sha Maison Stage Kanazawa
Nishiizumi

Kanazawa-shi,Ishikawa

28

Usagetype

Property
number(Note 1)

R-089

Residence

Esty Maison Unomori

Location(Note 2)

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

Estimatedvalue at theend of period(million yen)

Usage
type

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

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

Real estate trust
beneficiary interests

772

813

1,308

1,480

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

O-001

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

70,11989,100O-002

Gotenyama SH Building

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

49,606

61,700O-003

Hommachi Minami Garden
City

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

42,48356,000O-004

Hommachi Garden City
(Office building portion)

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

36,43944,800O-005

HK Yodoyabashi Garden
Avenue(Note 11)

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

4,220

6,410

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

6,167

7,190

28,70030,000-237,737

295,200

Real estate trust
beneficiary interests

16,81918,000R-091

Sha Maison Stage Hino

Hino-shi, Tokyo

R-092

Prime Maison
Yokohama Nihon-odori

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

4,642

5,010

R-093

Kobe Women’s Student
Housing

Kobe-shi, Hyogo

Real estate trust
beneficiary interests

5,319

5,870

R-094

Prime Maison Shibuya

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

2,385

2,660

2,921

3,200

O-006

Hirokoji Garden Avenue

Nagoya-shi,
Aichi

Akasaka Garden City

Minato-ku,
Tokyo

Officebuilding

Book value
at the end of
period(million yen)

Garden City Shinagawa
Gotenyama

Real estate trust
beneficiary interests

R-095

Prime Maison Hatsudai

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

R-096

Esty Maison Uemachidai

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

1,065

1,150

O-007

R-098

Prime Maison
Shirokane-takanawa

Minato-ku,
TokyoReal estate trust
beneficiary interests

4,796

5,470

Subtotal

R-099

Prime Maison
Ichigayayamabushicho

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

4,115

4,270

H-001

Hommachi Garden City
(Hotel portion)

Osaka-shi,
Osaka

R-100

Esty Maison Morishita

Sumida-ku,
TokyoReal estate trust
beneficiary interests

633

709

H-002

The Ritz-Carlton, Kyoto

Kyoto-shi, Kyoto

Real estate trust
beneficiary interests

22,16922,295

R-101

Prime Maison
Shirokanedai Tower

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

7,939

10,300Subtotal--

38,98840,295

R-102

Prime Maison Otsuka

Toshima-ku,
TokyoReal estate trust
beneficiary interests

3,687

4,510

Total

-

-

515,206

605,508

R-103

Prime Maison Asakusabashi

Taito-ku, Tokyo

Real estate trust
beneficiary interests

1,678

2,060

R-104

Prime Maison Daikanyama

Meguro-ku,
TokyoReal estate trust
beneficiary interests

2,520

3,170

R-105

Prime Maison
Gotenyama West

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

3,412

4,360

R-106

Esty Maison
Toyosu Residence(Note 9)

Koto-ku, Tokyo

Real estate trust
beneficiary interests

5,854

7,160

R-108

Esty Maison Ijiri

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

393

421

R-109

Prime Maison
Mitatsunamachi

Minato-ku,
TokyoReal estate trust
beneficiary interests

2,047

2,330

R-110

Prime Maison Hongo

Bunkyo-ku,
TokyoReal estate trust
beneficiary interests

2,605

2,830

R-111

Prime Maison Kuramae

Taito-ku,
Tokyo

Real estate trust
beneficiary interests

2,193

2,410

R-112

Esty Maison Yokohamaaobadai(Note 10)

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

3,020

3,330

R-113

Esty Maison Shizuoka Takajo

Shizuoka-shi,
Shizuoka

Real estate trust
beneficiary interests

671

662

R-114

Sha Maison Stage Hirose-doriSendai-shi,
MiyagiReal estate trust
beneficiary interests

876

909

R-115

Esty Maison
HIGASHIBETSUIN

Nagoya-shi,
Aichi

Real estate trust
beneficiary interests

2,275

2,200

R-116

Esty Maison Kayaba

Nagoya-shi,
Aichi

Real estate trust
beneficiary interests

938

946

R-117

Esty Maison
SHIRAKABEMINAMI

Real estate trust
beneficiary interests

686

682

R-118

Prime Maison Shimokitazawa

Nagoya-shi,
Aichi
Setagaya-ku,
Tokyo

2,655

2,580

Prime Maison Meguro

Meguro-ku,
TokyoReal estate trust
beneficiary interests

2,368

2,310

Prime Maison Ryogoku

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

1,585

1,540

-

238,481270,013

R-119
R-120
Subtotal

29

Name ofreal estate, etc.

-

Hotel

-

(Note 1) “Property number” is the number assigned by property after classifying the properties owned by SHR by usage type, and theletters R, O and H refer to residence, office building and hotel, respectively. The same shall apply hereinafter.
(Note 2) “Location” is indicated based on the statement in the registry. If there are multiple statements of locations in the registry, either
one of them is indicated.
(Note 3) “Estimated value at the end of period” refers to the value stated in each real estate appraisal report (with the end of April as theappraisal date) for each fiscal period ended April, and the value stated in each real estate appraisal report (with the end of Octoberas the appraisal date) or the survey value stated in each real estate survey value report (with the end of October as the surveydate) as a result of value surveys not pursuant to real estate appraisal standards, for each fiscal period ended October, rounded
down to the nearest million yen.
(Note 4) For Esty Maison Gotanda, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest to partof the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site: 387,036/426,933 (orapproximately 90.7%)).
(Note 5) For Esty Maison Musashikoyama, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest
to part of the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site:
117,678/127,609 (or approximately 92.2%)).
(Note 6) For Esty Maison Sendagi, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest to partof the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site: 89,730/103,842 (orapproximately 86.4%)).
(Note 7) Sha Maison Stage Hakata is a property on a leased land owned by the Urban Renaissance Agency and for which a general fixedterm 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 landis 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 a general
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) For HK Yodoyabashi Garden Avenue, SHR owns real estate trust beneficiary interests for the compartmentalized ownershipinterest to all of the exclusively-owned portions of the 1st through 6th floors above ground of the building and for theaccompanying right of site (ratio of right of site: 405,901/1,000,000 (or approximately 40.6%)).

30

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

Usage
type

Property
numberName ofreal estate, etc.

13th fiscal period
14th fiscal period
From: Nov. 1, 2020
From: May 1, 2021
To: Apr. 30, 2021
To: Oct. 31, 2021
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
percentage
Total
Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof total
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalof fiscal
period]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)(Note 3)

R-001
R-002
R-003
R-004

Esty Maison Ebisu

R-024
R-025

Esty Maison
Higashishinagawa

R-006
R-007
R-008
R-010
R-011
R-012
R-013
R-014
R-015
R-016
R-017
R-018
R-019
R-020
R-021
R-022
R-023

R-026
R-027
R-028
R-029

31

Esty Maison
Azabunagasaka
Esty Maison
Ebisu II
Esty Maison
Kanda
Esty Maison
Kitashinjuku
Esty Maison
Asakusakomagata
Esty Maison
Kawasaki
Esty Maison
KameidoEsty Maison
MeguroEsty Maison
SugamoEsty Maison
Kyobashi
Esty Maison
Hakuraku
Esty Maison
Minamihorie
Esty Maison
GotandaEsty Maison
Oisendaizaka
Esty Maison
ShinagawaSeasideEsty Maison
Minamiazabu
Esty Maison
Tsukamoto(Note 5)
Esty Maison
Kawasaki II
Esty Maison
Azabujuban
Esty Maison
Itabashihoncho
Esty Maison
Oizumigakuen(NoteR-005

Residence

Esty Maison Ginza

5)(Note 5)

Esty Maison
Itabashikuyakushomae(Note 5)
Esty Maison
Musashikoyama
Esty Maison
Sendagi
Esty Maison
Yotsuyasakamachi(Note 5)

Usage
type

Property
numberName ofreal estate, etc.

13th fiscal period
14th fiscal period
From: Nov. 1, 2020
From: May 1, 2021
To: Apr. 30, 2021
To: Oct. 31, 2021
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
percentage
Total
Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof total
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalof fiscal
period]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)(Note 3)R-030

(Note 3)

1

97.9

174

1.2

1

95.7

177

1.2

1

85.1

51

0.3

1

90.3

48

0.3

1

96.7

57

0.4

1

96.8

58

0.4

1

96.1

23

0.2

1

92.1

23

0.2

1

92.4

45

0.3

1

94.8

43

0.3

1

83.4

41

0.3

1

92.2

44

0.3

1

97.5

64

0.4

1

97.4

65

0.5

1

96.6

78

0.5

1

96.7

76

0.5

1

96.9

53

0.4

1

94.9

52

0.4

1

91.8

32

0.2

1

92.4

29

0.2

1

97.7

49

0.3

1

97.1

50

0.4

1

96.5

88

0.6

1

94.7

85

0.6

1

98.2

29

0.2

1

100.0

30

0.2

1

97.0

33

0.2

1

98.4

34

0.2

1

95.7

94

0.6

1

96.8

91

0.6

1

97.1

78

0.5

1

94.7

76

0.5

1

94.2

64

0.4

1

96.5

63

0.4

1

100.0

34

0.2

1

90.4

34

0.2

R-048

1

100.0

39

0.3

－

－

24

0.2

R-049

1

92.2

63

0.4

1

94.3

62

0.4

R-050

1

96.2

66

0.4

1

98.3

66

0.5

R-051

1

93.8

34

0.2

1

98.5

29

0.2

R-052

1

100.0

26

0.2

－

－

16

0.1

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

R-045
R-046
R-047

R-053
R-054

Esty Maison
Hakatahigashi
Esty Maison
Kamigofuku(Note 5)
Esty Maison
Sangenjaya(Note 5)
Prime Maison
Musashinonomori
Prime Maison
Higashisakura
Prime Maison
Kayabakoen
Esty Maison
Sangenjaya II
Esty Maison
Itabashi C6
Sha Maison Stage
HakataEsty Maison
Kinshicho
Esty Maison
Musashikoganei
Prime Maison
GokisoPrime Maison
Yuhigaoka
Prime Maison
Kitatanabe
Prime Maison
Momochihama
Esty Maison
Akihabara
Esty Maison
SasazukaPrime Maison
Ginza East
Prime Maison
TakamiPrime Maison
Yadaminami
Prime Maison
TerihaEsty Maison
Higashishirakabe
Esty Maison
Sengoku
Esty Maison
Daizawa
Esty Maison
Togoshi
Esty Maison
Nishitemma
Esty Maison
Shirokanedai
Esty Maison
Higashishinjuku(Note 3)

1

96.9

86

0.6

1

99.5

86

0.6

1

97.0

29

0.2

－

－

17

0.1

－

－

15

0.1

－

－

－

－

1

100.0

65

0.4

1

98.6

67

0.5

1

94.6

52

0.3

1

98.5

51

0.4

1

100.0

29

0.2

1

100.0

29

0.2

1

92.0

24

0.2

1

100.0

24

0.2

1

93.5

75

0.5

1

94.1

75

0.5

1

100.0

94

0.6

1

100.0

94

0.7

1

95.8

34

0.2

1

100.0

36

0.3

1

99.0

56

0.4

1

99.0

54

0.4

1

97.7

64

0.4

1

98.3

64

0.4

1

96.4

29

0.2

1

96.4

29

0.2

1

92.6

22

0.2

1

93.2

23

0.2

1

100.0

69

0.5

1

100.0

69

0.5

1

98.7

56

0.4

1

94.9

67

0.5

1

93.4

90

0.6

1

97.5

90

0.6

1

95.9

172

1.2

1

90.9

171

1.2

1

85.8

33

0.2

1

100.0

33

0.2

1

96.2

28

0.2

1

100.0

28

0.2

1

100.0

51

0.3

1

100.0

51

0.4

1

100.0

46

0.3

1

100.0

46

0.3

1

97.0

37

0.3

1

88.1

36

0.3

1

97.8

61

0.4

1

98.8

63

0.4

1

95.5

48

0.3

1

96.8

50

0.4

1

95.8

53

0.4

1

93.9

49

0.3

1

95.0

71

0.5

1

93.9

69

0.5

1

94.8

46

0.3

1

96.0

46

0.3

1

97.2

69

0.5

－

－

43

0.3

1

94.4

77

0.5

－

－

43

0.3

R-056

1

86.4

29

0.2

1

98.3

31

0.2

R-057

1

92.3

22

0.2

1

94.9

22

0.2

R-058

Esty Maison
Motoazabu

1

92.6

41

0.3

1

100.0

38

0.3

1

91.9

60

0.4

－

－

36

0.3

R-059

Esty Maison
Toritsudaigaku

1

100.0

23

0.2

1

96.0

23

0.2

R-055

32

Usagetype

Property
numberName ofreal estate, etc.

13th fiscal period
14th fiscal period
From: Nov. 1, 2020
From: May 1, 2021
To: Apr. 30, 2021
To: Oct. 31, 2021
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
percentage
Total
Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof total
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalof fiscal
period]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)(Note 3)

R-060
R-061
R-062
R-063
R-064
R-065
R-066
R-067
R-068
R-069
R-070
R-071
R-072
R-073
R-074
Residence R-075
R-076
R-077
R-078
R-079
R-080
R-081
R-082
R-083
R-084
R-085
R-086
R-087
R-088
R-089

33

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

1
1

100.0
98.9

29
53

Usage
type

Property
numberName ofreal estate, etc.

R-090

Esty Maison Kohoku
Tsunashima(Note 5)(Note 3)

0.2
0.4

1
1

97.8
98.9

30
53

(Note 3)

0.2

R-091

0.4

1

91.8

28

0.2

1

91.6

27

0.2

R-092

1

95.1

28

0.2

1

94.4

29

0.2

R-093

1

97.0

34

0.2

1

97.0

34

0.2

1

94.4

34

0.2

1

96.7

33

0.2

1

96.4

71

0.5

1

98.3

70

0.5

1

94.6

97

0.7

1

97.6

96

0.7

1

96.6

49

0.3

1

95.5

48

0.3

1

89.7

43

0.3

1

89.3

44

0.3

1

96.2

38

0.3

1

91.2

38

0.3

1

91.4

52

0.4

1

97.3

51

0.4

1

91.1

104

0.7

1

95.9

91

0.6

1

100.0

15

0.1

1

100.0

15

0.1

1

83.1

62

0.4

1

93.4

64

0.4

1

97.3

75

0.5

1

98.1

74

0.5

1

97.8

225

1.5

1

96.2

223

1.5

1

95.1

247

1.7

1

96.4

243

1.7

1

90.8

66

0.4

1

98.6

72

0.5

1

100.0

155

1.0

1

100.0

155

1.1

1

96.6

56

0.4

1

97.7

55

0.4

1

90.2

56

0.4

1

100.0

57

0.4

1

94.3

118

0.8

1

91.0

115

0.8

R-113

1

98.4

73

0.5

1

100.0

73

0.5

R-114

1
1
1
1

98.1
99.4
100.0
99.0

46
88
56
111

0.3
0.6
0.4
0.7

1
1
1
1

95.3
98.7
100.0
99.2

47
89
56
110

0.3
0.6
0.4
0.8

1

100.0

39

0.3

1

100.0

39

0.3

1

100.0

27

0.2

1

100.0

27

0.2

13th fiscal period
14th fiscal period
From: Nov. 1, 2020
From: May 1, 2021
To: Apr. 30, 2021
To: Oct. 31, 2021
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
percentage
Total
Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof total
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalof fiscal
period]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)

R-094
R-095
R-096
R-097
R-098
R-099
R-100
R-101
R-102
R-103
R-104
Residence

R-105
R-106
R-107
R-108
R-109
R-110
R-111
R-112

R-115
R-116
R-117
R-118
R-119
R-120
Subtotal

Sha Maison Stage
Hino

Prime Maison
Yokohama Nihon-odori

Kobe Women’sStudent Housing
Prime Maison
ShibuyaPrime Maison
Hatsudai
Esty Maison
Uemachidai
Esty Maison Kobesannomiya(Note 5)
Prime Maison
Shirokane-takanawa

Prime Maison
Ichigayayamabushicho

Esty Maison
Morishita

Prime Maison
Shirokanedai Tower

Prime Maison
OtsukaPrime Maison
Asakusabashi
Prime Maison
Daikanyama
Prime Maison
Gotenyama West
Esty Maison
Toyosu Residence
Esty Maison
Kokura(Note 5)
Esty Maison
Ijiri
Prime Maison
Mitatsunamachi
Prime Maison
Hongo
Prime Maison
Kuramae

Esty Maison
Yokohama-aobadai

Esty Maison
Shizuoka Takajo
Sha Maison
Stage Hirose-dori

Esty Maison
HIGASHIBETSUIN

Esty Maison
KayabaEsty Maison
SHIRAKABEMINAMI

Prime Maison
Shimokitazawa
Prime Maison
MeguroPrime Maison
Ryogoku(Note 3)

1

100.0

78

0.5

－

－

47

0.3

1

98.4

48

0.3

1

99.0

49

0.3

1

94.4

140

0.9

1

97.8

139

1.0

1

100.0

222

1.5

1

98.9

221

1.5

1

95.3

63

0.4

1

93.6

62

0.4

1

96.0

78

0.5

1

97.4

80

0.6

1

91.1

33

0.2

1

100.0

33

0.2

1

100.0

31

0.2

－

－

18

0.1

1

93.9

120

0.8

1

91.1

115

0.8

1

92.3

101

0.7

1

88.0

102

0.7

1

95.1

20

0.1

1

100.0

19

0.1

1

94.4

236

1.6

1

94.3

226

1.6

1

91.9

115

0.8

1

93.5

109

0.8

1

93.8

49

0.3

1

89.8

49

0.3

1

95.0

67

0.4

1

91.6

68

0.5

1

91.3

108

0.7

1

93.3

113

0.8

1

97.0

481

3.2

1

95.9

471

3.3

1

94.3

32

0.2

－

－

18

0.1

1

100.0

13

0.1

1

100.0

13

0.1

1

80.1

51

0.3

1

89.5

49

0.3

1

96.1

64

0.4

1

93.3

67

0.5

1

95.7

62

0.4

1

95.8

59

0.4

1

100.0

86

0.6

1

100.0

86

0.6

1

100.0

23

0.2

1

100.0

23

0.2

1

100.0

29

0.2

1

100.0

29

0.2

1

100.0

11

0.1

1

100.0

69

0.5

1

100.0

5

0.0

1

96.2

30

0.2

1

100.0

3

0.0

1

100.0

20

0.1

－

－

－

－

1

98.3

19

0.1

－

－

－

－

1

92.6

15

0.1

－

－

－

－

1

91.0

11

0.1

13

96.5

7,772

52.1

12

96.8

7,671

53.0

34

Usagetype

Property
numberName ofreal estate, etc.

13th fiscal period
14th fiscal period
From: Nov. 1, 2020
From: May 1, 2021
To: Apr. 30, 2021
To: Oct. 31, 2021
PropertyPropertyAs a
As a
relatedrelated
Total
Occupancy
percentage
Total
Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof total
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalof fiscal
period]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)(Note 3)

O-001
O-002
O-003
Officebuilding

O-004

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

1,947

13.0

1

95.5

1,895

13.1

1

100.0

1,088

7.3

1

100.0

1,089

7.5

1

99.2

1,285

8.6

1

100.0

1,299

9.0

1

100.0

903

6.1

1

100.0

903

6.2

162

1.1

1

100.0

165

1.1

1

100.0

208

1.4

1

100.0

213

1.5

1

95.9

677

4.5

1

87.8

617

4.3

4

99.4

6,274

42.0

4

97.4

6,184

42.7

1

100.0

402

2.7

1

100.0

402

2.8

1

100.0

475

3.2

1

100.0

215

1.5

Subtotal

2

100.0

878

5.9

2

100.0

618

4.3

Total

18

97.3

14,925

100.0

17

97.2

14,474

100.0

O-007
Subtotal
H-001(Note 2)

100.0

100.0

O-006

(Note 1)

1

1

O-005

Hotel

(Note 3)

H-002

Hommachi Garden
City(Hotel portion)
The Ritz-Carlton,
Kyoto“Total number of tenants” refers to the sum total of the number of tenants under, and indicated in, the respective lease agreements
for each property that are valid as of the end of fiscal period under review (or, if a master lease agreement that is valid as of theend of each fiscal period has been concluded for the property, the number of lessees under the master lease agreement). In the“Subtotal” and “Total” columns, however, a tenant that leases spaces in multiple properties is counted as one. Furthermore, of theoffice buildings, the total number of end tenants for Garden City Shinagawa Gotenyama, Hommachi Minami Garden City, HK
Yodoyabashi Garden Avenue, Hirokoji Garden Avenue and Akasaka Garden City where pass-through type master lease agreements
have been concluded is 17, 15, 8, 7 and 17, respectively as of the end of the 13th fiscal period (from Nov. 1, 2020 to Apr. 30, 2021)
and 17, 16, 8, 7 and 17 respectively as of the end of the 13th fiscal period (from May. 1, 2021 to Oct. 31, 2021).

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

5.

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

6.

Details of Investment Securities
Not applicable.

7.

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

Transaction other thanmarket transaction

Transaction other thanmarket transaction

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

Contract amount, etc.
Fair value(thousand yen)(Note 1)(thousand yen)Amount(Note 2)due after 1 year
28,980,000

13,750,000(87,376)

123,391,000

101,341,000－(Note 3)

152,371,000

115,091,000(87,376)(Note 1) The contract amount, etc. of interest rate swap transactions is based on notional principal amounts.
(Note 2) The fair value was calculated by the counterparty of the relevant transaction based on the actual market interest rate, etc.
(Note 3) The fair value is omitted because the transaction meets the criteria for special accounting under the Accounting Standards for
Financial Instruments.

8.

Status of Other Assets

Trust beneficiary interests with real estate as the main assets in trust are stated in “3. Details of Assets (Real

Estate, etc.) in the Portfolio” above. As of the end of the fiscal period under review, there are no specified assets
other than real estate, etc., asset-backed securities, etc. and infrastructure assets, etc. in the portfolio.

“Occupancy rate” refers to the ratio of leased area to leasable area of each property as of the end of each fiscal period, rounded to
the nearest first decimal place. The figures indicated in the “Subtotal” columns are the ratio of the subtotal of leased area of each
property classified by usage type to the subtotal of leasable area of each property classified by usage type, and the figure indicatedin the “Total” column is the ratio of the sum total of leased area of each property to the sum total of leasable area of each property,
as the occupancy rate of the entire portfolio. The both figures have been rounded to the nearest first decimal place.
(Note 3) “Property-related operating revenue [during fiscal period]” indicates the property-related operating revenue of each property foreach fiscal period, rounded down to the nearest million yen.
(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 diposed “Esty Maison Tsukamoto”, “Esty Maison Oizumigakuen”, “Esty Maison Higashishinagawa”, “Esty Maison
Itabashikuyakushomae”, “Esty Maison Yotsuyasakamachi”, “Esty Maison Kamigofuku”, “Esty Maison Kohoku Tsunashima”, “EstyMaison Kobe-sannomiya”, and “Esty Maison Kokura” on August 20, 2021. Accordingly, “Property-related operating revenue [during
fiscal period]” and “As a percentage of total property-related operating revenue” for the properties in the above table indicate thefigures for the duration SHR owned it in the fiscal period under review. Moreover, SHR diposed “Esty Maison Sangenjaya” on
February 26, 2021.
Accordingly, “Property-related operating revenue [during fiscal period]” and “As a percentage of total property-related operating
revenue” for the property in the above table indicate the figures for the duration SHR owned it in the 13th fiscal period (from Nov.
1, 2020 to Apr. 31, 2021).

35

4.

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.

36Capital expenditures for property

Condition of expenses and debts

1.

1.

Schedule of Capital Expenditures

Details of Expenses Pertaining to Management, etc.

(Unit: thousand yen)

The main capital expenditure amounts accompanying renovation work, etc. currently planned for properties

owned by SHR, are as follows. However, a portion of such amounts may ultimately be classified as expenses in theItemcourse of the accounting process.

Scheduled amount (million yen)(Note)
Name of real estate, etc.
(location)
The Ritz-Carlton, Kyoto(Hokodencho, Nijo-Ohashi Agaru,
Nakagyo-ku, Kyoto-shi, Kyoto)
Prime Maison Ginza East
(Tsukiji, Chuo-ku, Tokyo)
Prime Maison Higashisakura(Higashisakura, Higashi-ku,
Nagoya-shi, Aichi)
Esty Maison Ginza(Ginza, Chuo-ku, Tokyo)
Esty Maison Itabashihoncho(Yamato-cho, Itabashi-ku, Tokyo)
Esty Maison Minamihorie(Minamihorie, Nishi-ku, Osaka-shi,
Osaka)(Note)

PurposeInterior
Renovation
Large-scale repairs
Large-scale repairs
Large-scale repairs
Large-scale repairs
Large-scale repairs

Scheduled period
From: November 2021
To: August 2022
From: May 2022
To: October 2022
From: May 2022
To: October 2022
From: October 2021
To: April 2022
From: November 2021
To: March 2022
From: November 2021
To: March 2022

Total
amountPayment for
the fiscal
period underreview

Amountalready paid

215

―

―

149

―

―

129

―

―

120

―

―

75

―

―

75

―

―

Asset management fee

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

14th fiscal period
From: May 1, 2021
To: Oct. 31, 2021

1,029,670

1,308,717

Asset custody fee

10,368

10,398Administrative service fees

48,207

48,320

Directors’ compensations

3,600

3,600

268,104

373,112

1,359,951

1,744,149

Other expenses
Total(Note) In addition to the amounts shown above, the asset management fees contain 2,895 thousand yen for the 13th fiscal period and 51,450
thousand yen for the 14th fiscal period, respectively as management fee for property disposition, which was recorded as otherdisposition-related expenses.

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

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

2.

Capital Expenditures During Period
An overview of capital expenditures conducted by SHR for its properties during the fiscal period under review is
as set forth in the following table. Total capital expenditures during the fiscal period under review was 727 million
yen and, together with 370 million yen of repair expenses charged to expenses in the fiscal period under review,
work amounting to 1,098 million yen was implemented.

Name of real estate, etc.
Purpose(location)
Prime Maison Gokiso
Large-scale repair(Ayuchitori, Showa-ku, Nagoya-shi, Aichi)
Esty Maison Minamiazabu
Large-scale repair(Minamiazabu, Minato-ku, Tokyo)
Other capital expenditures
Total

3.

PeriodFrom: May 2021
To: October 2021
From: June 2021
To: October 2021

Payment amount(million yen)
121
46
559
727

Cash Reserves for Long-Term Repair Plans

SHR had no cash reserved for long-term repair plans as of the end of the fiscal period under review(Note).

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

37

38

Condition of investment transactions
1.

3.

(1)

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

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)

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

Prime Maison Shimokitazawa

September 1, 2021

2,580

―

―

―

―

Prime Maison Meguro

September 1, 2021

2,310

―

―

―

―

Prime Maison Ryogoku

September 1, 2021

1,530

―

―

―

―

Esty Maison Tsukamoto――

August 20, 2021

1,440

1,027

363

Esty Maison Oizumigakuen――

August 20, 2021

925

767

125

Esty Maison Higashishinagawa――

August 20, 2021

3,160

2,286

768

Esty Maison Itabashikuyakushomae――

August 20, 2021

3,125

2,452

566

Esty Maison Yotsuyasakamachi――

August 20, 2021

2,610

2,125

397

Esty Maison Kamigofuku――

August 20, 2021

970

773

163

Esty Maison Kohoku Tsunashima――

August 20, 2021

3,175

2,686

382

Esty Maison Kobe-sannomiya――

August 20, 2021

1,015

930

50

Esty Maison Kokura――

August 20, 2021

730

1,069

(364)

Total

―

6,420

―

17,150

14,1182,452

Acquisition
or
Disposition

Name of real estate, etc.

Type of asset

Date ofappraisal

2,580

2,580

Tanizawa Sogo
Appraisal Co., July 1, 2021
Ltd.

Acquisition Prime Maison Meguro

Real estate
Septembertrust beneficiary
1, 2021interests

2,310

2,310

Tanizawa Sogo
Appraisal Co.,Ltd.

July 1, 2021

Prime Maison Ryogoku

Real estate
Septembertrust beneficiary
1, 2021interests

1,530

1,540

Tanizawa Sogo
Appraisal Co.,Ltd.

July 1, 2021

Real estate
trust beneficiaryinterests

1,440

1,110

Real estate
trust beneficiaryinterests

925

858

Real estate
trust beneficiaryinterests

3,160

2,390

Real estate
trust beneficiaryinterests

3,125

2,750

Real estate
trust beneficiaryinterests

2,610

2,340

Real estate
trust beneficiaryinterests

970

Real estate
trust beneficiaryinterests

Disposition

owned properties (excluding consumption tax, local consumption tax and miscellaneous expenses including transaction fees), rounded
down to the nearest million yen. The same shall apply hereinafter.

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.

(Note)

Real estateAppraiser

Septembertrust beneficiary
1, 2021

Prime Maison
Shimokitazawa

interests

Esty Maison Tsukamoto

August 20,
2021

Esty Maison
Oizumigakuen

August 20,
2021

Esty Maison
Higashishinagawa

August 20,
2021

Esty Maison
Itabashikuyakushomae

August 20,
2021

Esty Maison
Yotsuyasakamachi

August 20,
2021

Esty Maison Kamigofuku

August 20,
2021

Esty Maison
Kohoku Tsunashima

August 20,
2021

Esty Maison
Kobe-sannomiya

August 20,
2021

Esty Maison Kokura

August 20,
2021(Note) “Acquisition price” and “Disposition price” indicate the transaction prices shown in the sales and purchace agreements for respective

2.

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

Japan Real Estate
Institute

April 30,
2021

JLL Morii
Valuation &Advisory K.K.

April 30,
2021

JLL Morii
Valuation &Advisory K.K.

April 30,2021

DAIWA REALESTATEAPPRAISAL CO.,LTD.

April 30,
2021

JLL Morii
Valuation &Advisory K.K.

April 30,
2021

825

Rich Appraisal
Institute co., Ltd

April 30,
2021

3,175

3,033

April 30,2021

Real estate
trust beneficiaryinterests

Japan Real Estate
Institute

1,015

1,000

April 30,2021

Real estate
trust beneficiaryinterests

Chuo Real EstateAppraisal Co., Ltd.

730

1,050

Rich Appraisal
Institute co., Ltd

April 30,
2021

The appraisal value stated above is derived by applying the “Real Estate Appraisal Standards; Particulars; Chapter 3: Appraisal on
Value of Real Estate Subject to Securitization.”(2) Others
Not applicable.

39

40

4.

Other information

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

1.

Amount of purchase and sale, etc.

Category
Total amountAmount of purchase, etc.

Amount of sale, etc.

6,420 million yen

17,150 million yen

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

Breakdown of status of transactions with interested persons, etc.
Sekisui House, Ltd.

6,420 million yen [100.0%]－million yen[－%](2) Amount of Commission Fee, etc.

Category

Total amountof commissionfee, etc. (A)(thousand yen)Management fee(Note 2)998,511

Breakdown of transactions with interested persons, etc.
Amount paid(B)(thousand yen)Payee

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

Sekisui House Real Estate Tokyo, Ltd.

403,263

40.4

Sekisui House Real Estate Chubu, Ltd.

72,475

7.3

Sekisui House GM Partners, Ltd.

51,449

5.2

Sekisui House Real Estate Kyushu, Ltd.

18,519

1.9

Sekisui House, Ltd.

14,400

1.4

Sekisui House Real Estate Kansai, Ltd.

5,538

0.6

Sekisui House Real Estate Tohoku, Ltd.

1,050

0.1

294

0.0

SH Hotel Systems Ltd.

Notice(1) General Meeting of Unitholders(2) Meeting of the Board of Directors of the Investment Corporation
In the fiscal period under review, there is no information regarding the matters, etc. provided in Items 2, 3, 5, 6
and 8 of Article 109, Paragraph 2 of the Investment Trusts Act approved at a meeting of the board of directors of
SHR, as well as other matters deemed important.

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

5.

285,298 thousand yen

Sekisui House, Ltd.

120,744 thousand yen

Sekisui House Real Estate Chubu, Ltd.

112,045 thousand yen

Sekisui House Real Estate Kyushu, Ltd.

41,602

Sekisui House GM Partners, Ltd.

26,854 thousand yen

thousand yen

Sekisui House Real Estate Kansai, Ltd.

5,366 thousand yen

Sekisui House Real Estate Tohoku, Ltd.

2,884 thousand yen

Status, etc. of Transactions with the Asset Management Company Pertaining to Business Operations ofConcurrent Business Engaged in by the Asset Management Company

There are no applicable transactions as of the end of the fiscal period under review, as SHAM does not concurrently
engage in any type I financial instruments or type II financial instruments business (as defined in the Financial

Instruments and Exchange Act (Act No. 25 of 1948, as amended)), building lots and buildings transaction business,or specified joint real estate ventures.

41

42

<MEMO>

Financial Section (Audited)

Contents
Financial Statements

43

Balance Sheet

45

Statement of Income and Retained Earnings

47

Statement of Changes in Net Assets

48

Statement of Cash Distributions

50

Statement of Cash Flows51

Notes to Financial Statements

52

Supplementary Schedules

68

Independent Auditor’s Report78

44

(Thousands of yen)

13th Fiscal Period

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

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

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

45

14th Fiscal Period(As of October 31, 2021)

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

23,040,298
15,051,403
164,021234,965
35,114(1,914)38,523,889

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

172,993,457(19,081,364)
153,912,093
1,570,228(270,436)
1,299,791
2,277,190(330,564)
1,946,626
153
(153)
0
664,503(158,552)
505,950
355,167,709
512,832,171

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

2,374,044
3,361
2,377,406

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

801,516
564,888358,970
1,725,376
516,934,954

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

136,439
49,715
186,154555,644,998

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Derivatives liabilities
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Derivatives liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
SurplusCapital surplus
Voluntary reserve
Reserve for reduction entry
Reserve for temporary difference adjustments
Total voluntary reserve
Unappropriated retained earnings
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets (Note 5)
Total liabilities and net assets

14th Fiscal Period(As of April 30, 2021)(As of October 31, 2021)

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

1,071,071－
3,000,000
39,230,000
1,502,916
201,082582
492,221688,358
37,98057,492
46,281,705

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

31,500,000
176,212,000
13,950,345
49,396
8,783
221,720,526
268,002,231

149,210,081

149,210,081

128,598,415

128,598,415

649,425
832,707
1,482,132
7,103,009
137,183,557
286,393,638

726,488675,138
1,401,626
8,520,020
138,520,062
287,730,143(173,239)(173,239)
286,220,398
556,569,273(87,376)(87,376)
287,642,766
555,644,998

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

46

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

13th Fiscal Period

14th Fiscal Period

to April 30, 2021)

to October 31, 2021)(From November 1, 2020

Operating revenue
Rent revenue – real estate (Note 6)
Other lease business revenue (Note 6)
Gain on sale of real estate properties (Note 6)
Total operating revenue
Operating expenses
Expenses related to rent business (Note 6)
Loss on sale of real estate properties (Note 6)
Asset management fees
Asset custody fees
Administrative service fees
Directors’ compensation
Provision of allowance for doubtful accounts
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
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.

(3) Statement of Changes in Net Assets
13th Fiscal Period (From November 1, 2020 to April 30, 2021)

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

14,065,955
408,1222,817,273
17,291,351

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

5,769,153
364,362
1,308,717
10,39848,3203,600－
373,112
7,877,666
9,413,685

143
915
1,059

147
649
797

640,664
72,701
113,927
42,613
14,2022,419
886,528
7,103,614
7,103,614
605
605
7,103,009
7,103,009

647,886
77,935
107,191
42,613
15,183
3,046
893,857
8,520,625
8,520,625
605
605
8,520,020
8,520,020

Unitholders’ equity
Surplus
Unitholders’capitalBalance at beginning of period

Voluntary reserve
CapitalsurplusReserve for
reduction entry

Reserve fortemporarydifference
adjustments

746,169

969,369

149,210,081 128,598,415

Unappropriatedretainedearnings

Total
voluntary
reserve
1,715,539

6,992,995(96,744)

96,744(136,661)

136,661

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

Distribution from surplus(7,226,402)

Net income

7,103,009

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

110,013

149,210,081 128,598,415

649,425

832,707

1,482,132

7,103,009－(Thousands of yen)

Valuation and translation
adjustments

Unitholders’ equity
Surplus

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

Total
surplusTotal
unitholders’equity137,306,950

286,517,031

－

－

－

－

－

－

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

Net income

7,103,009

7,103,009

7,103,009

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

286,259,219

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

Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period (Note 7)

47(Thousands of yen)

(From May 1, 2021

84,572

84,572

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

84,572

84,572(38,820)

137,183,557

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

286,220,398

48

14th Fiscal Period (From May 1, 2021 to October 31, 2021)(Thousands of yen)

Item

Unitholders’ equity
Surplus
Unitholders’capitalBalance at beginning of period

Ⅰ. Unappropriated retained earnings

Voluntary reserve
CapitalsurplusReserve for
reduction entry

Reserve fortemporarydifference
adjustments

649,425

832,707149,210,081 128,598,415

Unappropriatedretainedearnings

Total
voluntary
reserve
1,482,132

7,103,009

103,708

103,708(103,708)(26,645)(26,645)

26,645

Changes of items during period
Provision of reserve for reduction
entry
Reversal of reserve for reduction
entry
Reversal of reserve for temporary
difference adjustments(157,569)(157,569)

157,569

Distribution from surplus(7,183,515)

Net income

8,520,020

Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period (Note 7)－

77,062(157,569)(80,506)

1,417,011

149,210,081 128,598,415

726,488675,138

1,401,626

8,520,020－(Thousands of yen)

Valuation and translation
adjustments

Unitholders’ equity
Surplus

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

Total
surplusTotal
unitholders’equity137,183,557

286,393,638

－

－

－

－

－

－

－

－

－

Distribution from surplus(7,183,515)(7,183,515)(7,183,515)

Net income

8,520,020

8,520,020

8,520,020

Balance at beginning of period(173,239)(173,239)

286,220,398

Changes of items during period
Provision of reserve for reduction entry

Reversal of reserve for reduction
entry
Reversal of reserve for temporary
difference adjustments

Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period (Note 7)(4) Statement of Cash Distributions

85,86385,86385,863

1,336,504

1,336,504

85,86385,863

1,422,367

138,520,062

287,730,143(87,376)(87,376)

287,642,766

Ⅱ. Reversal of voluntary reserve

Reversal of reserve for reduction entry

Reversal of reserve for temporary difference
adjustments (Note 8)
Ⅲ. Cash distributions[Cash distributions per unit]
Ⅳ. Voluntary reserve

Provision of reserve for reduction entry(Note 8)
Ⅴ. Retained earnings carried forward
Method for calculating cash distributions

13th Fiscal Period(From May 1, 2021

to April 30, 2021)

to October 31, 2021)

7,103,009,154yen

8,520,020,261yen

26,645,983yen

337,690,182yen

157,569,331yen

70,602,414yen

7,183,515,550yen

7,732,464,798yen

103,708,918yen

1,195,848,059yen[1,675yen]

－yen

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

Based on such policy, SHR
decided to distribute
7,183,515,550 yen, which is
obtained by adding a reversalof the reserve for temporary
difference adjustments(157,569,331 yen) and areversal of the reserve for
reduction entry (26,645,983
yen) to unappropriatedretained earnings andreserving a reserve for
reduction entry (103,708,918
yen) provided in Article 65-7 of
the Act on Special Measures
Concerning Taxation, as

Based on such policy, SHR
decided to distribute
7,732,464,798 yen, which is
obtained by adding a reversalof the reserve for temporary
difference adjustments(70,602,414 yen) and a reversalof the reserve for reduction
entry (337,690,182yen) tounappropriated retained
earnings and reserving areserve for reduction entry(1,195,848,059yen) provided in
Article 65-7 of the Act on
Special Measures Concerning
Taxation, as distribution of

SHR will not distribute cash inexcess of earnings as set forth

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

49

[1,803yen]

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

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

14th Fiscal Period(From November 1, 2020

earnings.

in Article 46, Paragraph 2 of
the Articles of Incorporation of
SHR.

50

(5) Statement of Cash Flows
13th Fiscal Period

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease due to sale of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
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
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Proceeds from issuance of investment corporation bonds
Dividends paid
Net cash provided by (used in) financing activities
N e t i n c r e a s e ( d e c r e a s e ) i n cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 9)
The accompanying notes are an integral part of these financial statements.

51(From November 1, 2020
to April 30, 2021)(Thousands of yen)

14th Fiscal Period(From May 1, 2021
to October 31, 2021)

7,103,614
2,468,892
14,202
42,613(143)
713,366
11,945(13,430)(52,624)(225,576)
54,916(27,686)(20,701)
800,488
2,496
10,872,372
143(764,914)(607)
10,106,994

8,520,625
2,456,359
15,18342,613(147)
725,822
8,739
5,079
31,864
237,832
317,338
262,314
1,836
14,118,910(37,497)
26,706,872
147(762,781)(605)
25,943,633(4,605,816)(400)－
268,386(277,664)
9,037(4,606,458)(7,217,500)(128)(10,801)
234,296(402,363)
38,012(7,358,485)

3,000,000－
20,950,000(20,950,000)－(7,225,421)(4,225,421)
1,275,114
28,433,672
29,708,786－(3,000,000)
8,760,000(10,760,000)
1,980,375(7,182,607)(10,202,232)
8,382,915
29,708,786
38,091,702(6) Notes to Financial Statements
1. Organization
Sekisui House Reit, Inc. (“SHR”) is a Japanese real estate investment corporation established in September 2014
under the Act on Investment Trusts and Investment Corporations of Japan (the “Investment Trust Act”).
On December 3, 2014, SHR commenced its investment operations when it was listed on the Real Estate Investment
Trust Securities Market of the Tokyo Stock Exchange, and it acquired three properties (total acquisition cost of¥114.3 billion) on the same day.
SHR implemented a 2-for-1 split of its investment units with May 1, 2018 as the effective date.
SHR conducted an absorption-type merger with Sekisui House Residential Investment Corporation (“SHI”) as thedissolved corporation, setting May 1, 2018 as the effective date.
SHR is externally managed by a licensed asset management company, Sekisui House Asset Management, Ltd. (the“Asset Management Company”).
Sekisui House Asset Management, Ltd., previously called Sekisui House Investment Advisors, Ltd., carried out anabsorption-type merger with Sekisui House Asset Management, Ltd. (the “former SHAM”), which was the asset
management company for SHI, on May 1, 2018, with the Asset Management Company being the surviving company
and the former SHAM being the dissolved company, and changed its company name to the current one.
2. Basis of Presentation
SHR maintains its accounting records and prepares its financial statements in accordance with accounting
principles generally accepted in Japan (“Japanese GAAP”), including provisions set forth in the Financial
Instruments and Exchange Act, the Investment Trust Act, the Companies Act and the related regulations, which are
different in certain respects as to the application and disclosure requirements of International Financial ReportingStandards.
The accompanying financial statements are basically a translation of the financial statements of SHR, which wereprepared in accordance with Japanese GAAP and were presented in its Securities Report filed with the Kanto Local
Finance Bureau. In preparing the accompanying financial statements, certain reclassifications and modifications
have been made to the financial statements issued domestically in order to present them in a format which is morefamiliar to readers outside Japan. In addition, the notes to the financial statements include certain information
which might not be required under Japanese GAAP but is presented herein as additional information.
SHR’s fiscal period is a six-month period, which ends at the end of April and October of each year.
SHR does not prepare consolidated financial statements as it has no subsidiaries.
Unless otherwise specified, amounts have been rounded down to the nearest thousand yen in the accompanying
financial statements and the notes thereto. As a result, the amounts shown in the financial statements and notes
thereto do not necessarily agree with the sum of the individual account balances.
3. Summary of Significant Accounting Policies(1)Property, plant and equipment (including assets in trust)
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
8-61 years
Vehicles in trust
2 years
Tools, furniture and fixtures
2-15 years(2)Intangible assets
Intangible assets are amortized utilizing the straight-line method.
Leasehold rights in trust are amortized on a straight-line basis over theremaining life of each fixed-term land lease contract.
(3)Long-term prepaid expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
2. Accounting for(1) Investment corporation bond issuance costs
deferred assets
Investment corporation bond issuance costs are amortized utilizing thestraight-line method over the redemption periods.
(2) Investment unit issuance costs
Investment unit issuance costs are amortized utilizing the straight-line
method (over 3 years).
1. Method of depreciation andamortization of non-current
assets52

3. Standards for recording
allowance

4. Standards forrevenue and expense
recognition

Allowance for doubtful accounts
To prepare for possible losses arising from default on receivables, theestimated uncollectable amount is recorded by examining collectability on acase-by-case basis for doubtful and other specific receivables.
(1)Revenue recognition
The details of the main performance obligations relating to revenue arising fromcontracts with customers and the timing (usual timing of revenue recognition)
when such 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
the buyer gains control over the real estate, etc., at the point in time thedelivery obligation stipulated in the contract relating to the sale of the realestate is satisfied.
2) Utilities revenue
Utilities revenue mainly represents water utility revenue. With regard towater utility revenue, revenue is calculated based on the provision ofelectricity, water, etc. to lessees, as customers, under lease contracts for realestate, etc., and the agreements 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
the amount to be paid to other parties from the amount received as thepayment for electricity, gas, etc. supplied by those other parties.
Rent revenue
SHR generally recognizes rent revenue,
including fixed rent revenues, variable rent
revenues and common area charges, on an
accrual basis over the term of each leaseagreement.
Other lease businessrevenue

5. Method of hedge accounting

53

Other lease business revenue is recognizedin accordance with Japanese GAAP, typicallyas the amounts under the relevant agreements
become due.
(2)Accounting for property taxes
In accounting for property tax, city planning tax, depreciable asset tax, etc. onreal estate, etc., of the tax amount assessed and determined, the amountcorresponding to the applicable calculation period is expensed as expenses
related to rent business.
Reimbursement of property tax, paid to the seller upon the acquisition of realestate or trust beneficiary interests of real estate as assets in trust, is notrecognized as expenses related to rent business in the corresponding fiscal
period but included in the acquisition cost of the property.
Property taxes capitalized as a part of the acquisition cost amounted to 4,274
thousand yen for the 14th fiscal period and 14,444 thousand yen for the 13th
fiscal period.
(1)Method of hedge accounting
Deferral hedge accounting is applied. However, the special accounting
treatment is applied to interest rate swaps that meet the criteria for the
special accounting treatment.
(2)Hedging instruments and hedged items
Hedging instruments: Interest rate swap transactions
Hedged items:
Interest on loans(3)Hedging policy
SHR conducts derivative transactions for the purpose of hedging the risks set
forth in its Articles of Incorporation based on its basic risk management policy.
(4)Method for assessing the effectiveness of hedging
Interest rate swaps meet the criteria for the special accounting treatment andan assessment of the effectiveness is thus omitted.
(5)Special accounting treatment
Under the special accounting treatment, interest rate swaps are not measured
at fair value, but the differential paid or received under the swap agreements
is recognized and included in or deducted from interest expense. Anyamounts received under interest rate swaps subject to such accounting
treatment are not recognized as income on the accompanying statements ofincome and retained earnings but rather have the effect of decreasing interest
expenses.

6.

Scope of funds in thestatement of cash flows

7.

Other significant mattersserving as basis for
preparation offinancial statements

The funds (cash and cash equivalents) in the statement of cash flows consist of cashon hand and cash in trust; deposits that can be withdrawn at any time and deposits
in trust; and short-term investments with a maturity of three months or less fromthe date of acquisition, which are readily convertible to cash and bear only an
insignificant risk of price fluctuation.
(1)Accounting for trust beneficiary interests of real estate, etc. as assets in trust
Concerning trust beneficiary interests of real estate, etc. as assets in trust, allaccounts of assets and liabilities within assets in trust as well as all accountsof revenue and expenses from the assets in trust are recognized in the relevant
account items on the balance sheet and the statement of income and retained
earnings.
The following material items of the assets in trust recognized in the relevant
account items are separately listed on the balance sheet.
1ሻ Cash and deposits in trust2ሻ Buildings in trust; Structures in trust; Machinery and equipment in trust;Tools, furniture and fixtures in trust; Land in trust; Construction inprogress in trust; Leasehold rights in trust
3ሻ Tenant leasehold and security deposits in trust(2)Accounting for consumption tax, etc.
Consumption tax and local consumption tax are excluded from the correspondingtransaction amounts.

4. Notes on Changes in Accounting Policies

1. Adoption of Accounting Standard, etc. for Revenue Recognition
SHR adopted the "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31,
2020, "Revenue Recognition Accounting Standard") from the beginning of the current fiscal period andrecognized revenue when control of promised goods or services is transferred to customers in an amountthat is expected to be received in exchange for those goods or services.
SHR follows the transitional treatment stipulated in the provisions of paragraph 84 of the AccountingStandard for Revenue Recognition. The cumulative effect of retrospective application of a new accounting
policy prior to the beginning of the current fiscal period is reflected in retained earnings at the beginning of
the current fiscal period, and the new accounting policy has been applied from the beginning of current
fiscal period.
In accordance with the transitional treatment stipulated in Section 89-3 of the Revenue Recognition
Accounting Standard, related information for the previous period is not included in the notes to thefinancial statements.
The effect of this change on the financial statements for the current fiscal period is immaterial.
2. Application of Accounting Standard for Fair Value Measurement
The Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4, 2019, hereinafterreferred to as the "Accounting Standard for Fair Value Measurement") and other standards were applied
from the beginning of the current fiscal period, and in accordance with the transitional treatment
stipulated in paragraph 19 of the Accounting Standard for Fair Value Measurement and paragraph 44-2 ofthe Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019), the new
accounting policy stipulated by the Accounting Standard for Fair Value Measurement will be applied in the
future. The effect of this change on the financial statements for the current fiscal period is immaterial.
In accordance with the provisions of Article 2, Paragraph 5 of the Cabinet Office Ordinance on the Partial
Revision of Regulations for Terminology, Forms and Preparation Methods of Financial Statements”(Cabinet Office Ordinance No. 61 of September 24, 2021), the matters stipulated in Article 8-6-2,

Paragraph 1, Item 3 of the Ordinance on Terminology, Forms, and Preparation Methods of Financial
Statements, etc. after the revision has been omitted.

54

5. Notes to Balance Sheet

6. Notes to Statement of Income and Retained Earnings*1. Breakdown of property-related operating revenue and expenses*1. Minimum net assets designated in Article 67-4 of the Investment Trust Act(Thousands of yen)(Thousands of yen)

13th Fiscal Period

13th Fiscal Period

14th Fiscal Period(As of April 30, 2021)

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

13th Fiscal Period

14th Fiscal Period(As of April 30, 2021)

Total amount of commitment line
Balance executed as loans
Unused line of credit(As of October 31, 2021)

15,000,000

15,000,000－－

15,000,000

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

13th Fiscal Period

14th Fiscal Period(As of April 30, 2021)(As of October 31, 2021)

Balance at beginning of period

969,369

832,707

Reserve amount during period－－

Reversal amount during period

Reason for reserve and reversal

Other lease business revenue
Utilities revenue
Other

136,661

157,569

832,707675,138

Appropriated for
distributions

Appropriated for
distributions

14,195,706
341,881

14,537,588

13,723,818
342,137

146,360
241,058

387,419

186,534
221,588

Total property-related operating revenue
B. Property-related operating expenses
Expenses related to rent businessSubcontract expenses

14,925,007

559,551432,691

Property and other taxes

1,032,034

1,028,390

302,077

370,952

Other expenses related to rent business

41,941
249,684

41,461
272,573

17,22017,7772,468,170
585,792

5,706,053

2,455,615
583,485

5,769,153

Total property-related operating expenses

5,706,053

5,769,153

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

9,218,954

8,704,924*2. Breakdown of gain on sale of real estate properties
13th Fiscal Period (From November 1, 2021 to April 30, 2021)(Thousands of yen)

Esty Maison Sangenjaya(*) Reserve of a part of gain on negative goodwill that arose in the previous fiscal period; SHR plans to drawdown at least 1% of theProceeds from sale of real estate property

965,000

reserve for each fiscal period (corresponding to the amount of the reserve expensed equally over 50 years) and appropriate the amount

Cost of real estate property

800,488

for cash distributions, starting from the fiscal period following the fiscal period in which the reserve was made.

408,122566,204

449,580

Trust fees
Utilities expenses

14,065,955

14,474,077

Property management fees

Depreciation
1,556,827

Balance at end of period

Rent revenue – real estate
Rental income
Other

Repair expenses

1,556,827(From May 1, 2021
to October 31, 2021)

A. Property-related operating revenue

Insurance expenses

Gain on negative goodwill (*)
Initial amount(From November 1, 2020
to April 30, 2021)(As of October 31, 2021)

14th Fiscal Period

Other sales expenses

34,430Gain on sale of real estate property

130,08014th Fiscal Period (From May 1, 2021 to October 31, 2021)(Thousands of yen)

Esty Maison Tsukamoto

Proceeds from sale of real estate property

1,440,000

Cost of real estate property

1,027,615

Other sales expenses

48,874Gain on sale of real estate property

363,510

Esty Maison Oizumigakuen

55

Proceeds from sale of real estate property

925,000

Cost of real estate property

767,326

Other sales expenses

31,777

Gain on sale of real estate property

125,896

56

Esty Maison Higashishinagawa

Proceeds from sale of real estate property

3,160,000

Cost of real estate property

2,286,573

Other sales expenses

105,076

Gain on sale of real estate property

768,350

Esty Maison Itabashikuyakushomae

Proceeds from sale of real estate property

3,125,000

Cost of real estate property

2,452,314

Other sales expenses

106,464

Gain on sale of real estate property

566,220

Esty Maison Yotsuyasakamachi

Proceeds from sale of real estate property

2,610,000

Cost of real estate property

2,125,030

Other sales expenses

87,633Gain on sale of real estate property

397,336

Esty Maison Kamigofuku

970,000

Cost of real estate property

773,476

Other sales expenses

32,778Gain on sale of real estate property

163,744

Esty Maison Kohoku Tsunashima

Proceeds from sale of real estate property

3,175,000

Cost of real estate property

2,686,769

Other sales expenses

106,190

Gain on sale of real estate property

382,039

Esty Maison Kobe-sannomiya

1,015,000

Cost of real estate property

930,182

Other sales expenses

34,641Gain on sale of real estate property

50,175

Esty Maison Kokura

Proceeds from sale of real estate property
Cost of real estate property(From November 1, 2020
to April 30, 2021)

With regard to the reserve for temporary
difference adjustments, SHR plans to drawdownat least 1% of the reserve for each fiscal period(corresponding to the amount of the reserve
expensed equally over 50 years) and appropriate
the amount for cash distributions, starting fromthe fiscal period following the fiscal period inwhich the reserve was made. SHR decided to
drawdown 157,569,331 yen for the 13th fiscal
period.

14th Fiscal Period(From May 1, 2021
to October 31, 2021)

With regard to the reserve for temporary
difference adjustments, SHR plans to drawdownat least 1% of the reserve for each fiscal period(corresponding to the amount of the reserve
expensed equally over 50 years) and appropriate
the amount for cash distributions, starting fromthe fiscal period following the fiscal period inwhich the reserve was made. SHR decided to
drawdown 70,602,414 yen for the 14th fiscal
period.

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

Proceeds from sale of real estate property

Proceeds from sale of real estate property

8. Notes to Statement of Cash Distributions
Reserve for temporary difference adjustments
13th Fiscal Period

Loss on sale of real estate property

364,362

Cash and deposits

10,572,674

23,040,298

Cash and deposits in trust

19,136,112

15,051,403

Cash and cash equivalents

29,708,786

38,091,702

13th Fiscal Period

14th Fiscal Period(From May 1, 2021
to October 31, 2021)

Operating lease transactions as lessee
Future minimum lease payments(Thousands of yen)
(As of April 30, 2021)(As of October 31, 2021)

Due within 1 year

418,128

418,128

Due after 1 year

19,985,268

19,760,937

20,403,396

20,179,065

Total

1,069,621
24,74014th Fiscal Period

10. Lease Transactions

730,000

Other sales expenses

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

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

13th Fiscal Period

7. Notes to Statement of Changes in Net Assets*1. Total number of authorized investment units and total number of investment units issued
13th Fiscal Period(From November 1, 2020
to April 30, 2021)

57

14th Fiscal Period(From May 1, 2021
to October 31, 2021)

Total number of authorized investment units

20,000,000units

20,000,000units

Total number of investment units issued

4,288,666units

4,288,666units

14th Fiscal Period(As of April 30, 2021)(As of October 31, 2021)

Due within 1 year

11,422,799

9,917,289

Due after 1 year

35,137,850

31,391,871

46,560,650

41,309,160

Total

58

11. Financial Instruments
1. Status of financial instruments(1) Policy for financial instruments
Making it a policy to conduct stable and sound financial operations that would contribute to steady growthof its investment assets as well as efficient management and stability of management, SHR shall procure
funds through borrowings or the issuance of investment corporation bonds for the purposes of utilizing
such funds for the acquisition of assets, payments of repair expenses or distributions, operations of SHR,
repayment of obligations or other.
For derivative transactions, the policy is that derivative transactions shall be limited to those for the
purpose of hedging the risk of fluctuations in interest rates on liabilities and foreign currency risk in thecase of overseas real estate investments, and that no speculative transactions shall be conducted.
(2) Description of financial instruments and associated risks, and risk management structure
The funds procured through borrowings shall be used mainly for the acquisition of investment assets andfor repayment of loans.
The availability and terms and conditions of borrowings and the issuance of investment corporation bonds
may be affected by SHR’s financial creditworthiness, the interest rate situation and other factors, andthere is thus no guarantee that funds can be procured at SHR’s desired timing and terms and conditions.
Furthermore, loans with floating interest rates are susceptible to subsequent market trends.
SHR manages and limits the liquidity risk and the risk of fluctuations in interest rates associated withsuch fund procurement by diversifying fund procurement sources and means and by maintaining the ratio
of interest-bearing liabilities to total assets and the ratio of floating-rate loans to total loans at appropriate
levels. Furthermore, for certain loans with floating interest rates, derivative transactions (interest rate
swap transactions) are used as a hedging instrument for hedging the risk of fluctuations in interest rates
based on rules that set forth the basic policy for handling derivative transactions and risk management.
(3) Supplementary explanation of matters concerning fair value of financial instruments
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 thederivative transactions.
2. Matters concerning fair value of financial instruments
The carrying amount and fair value of financial instruments as of April 30, 2021 and October 31, 2021, andthe difference between them are as follows.
13th Fiscal Period (As of April 30, 2021)
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 the book value. Also, as“Tenant leasehold and security deposits in trust” are immaterial, related notes are omitted.

(1) Current portion of investment corporation
bonds

Book value
recorded on thebalance sheet(Thousands of yen)

Fair value

Difference

－

－

－

(2) Current portion of long-term loans payable

35,590,000

35,666,077

76,077(3) Investment corporation bonds

32,500,000

32,505,523

5,523

181,852,000

183,710,480

1,858,480

252,942,000

254,882,081

1,940,081(173,239)(173,239)－(173,239)(173,239)－(4) Long-term loans payable
Total liabilities(5) Derivative transactions (*)
Total derivative transactions (*)(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 is based on themethod of calculating by discounting the combined total of principal and interest by a reasonably estimated interest rateapplicable when conducting similar fund procurement for the remaining period of the bonds.
(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, the fairvalue is approximately the same as the book value and is thus stated at that book value (provided, however, that for long-termloans payable with floating interest rates that qualify for the special accounting treatment of interest rate swaps (please refer
to “13. Derivative Transactions”), the fair value is based on the method of calculation in which the sum total amount ofprincipal and interest accounted for with the interest rate swap is discounted by the rate assumed in the event of a similar
new drawdown). In addition, for those with fixed interest rates, the fair value is based on the method of calculation in which
the sum total amount of principal and interest is discounted by the rate assumed in the event of a similar new drawdown
corresponding to the remaining period.
(5) Derivative transactions
Please refer to “13. Derivative Transactions”.

14th Fiscal Period (As of October 31, 2021)

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 the book value. Also, as“Tenant leasehold and security deposits in trust” are immaterial, related notes are omitted.

(1) Current portion of investment corporation
bonds

Book value
recorded on thebalance sheet(Thousands of yen)

Fair value

Difference

3,000,000

2,998,800(1,200)(2) Current portion of long-term loans payable

39,230,000

39,246,355

16,355(3) Investment corporation bonds

31,500,000

31,556,573

56,573(4) Long-term loans payable
Total liabilities(5) Derivative transactions (*)
Total derivative transactions (*)

176,212,000

177,677,299

1,465,299

249,942,000

251,479,028

1,537,028(87,376)(87,376)－(87,376)(87,376)－(*) 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 is based on themethod of calculating by discounting the combined total of principal and interest by a reasonably estimated interest rateapplicable when conducting similar fund procurement for the remaining period of the bonds.
(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, the fairvalue is approximately the same as the book value and is thus stated at that book value (provided, however, that for long-termloans payable with floating interest rates that qualify for the special accounting treatment of interest rate swaps (please refer
to “13. Derivative Transactions”), the fair value is based on the method of calculation in which the sum total amount ofprincipal and interest accounted for with the interest rate swap is discounted by the rate assumed in the event of a similar
new drawdown). In addition, for those with fixed interest rates, the fair value is based on the method of calculation in which
the sum total amount of principal and interest is discounted by the rate assumed in the event of a similar new drawdown
corresponding to the remaining period.
(5) Derivative transactions
Please refer to “13. 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

59

60

14th Fiscal Period (As of October 31, 2021)(Note 2) Repayment schedule of investment corporation bonds and loans after the closing date

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

Investment corporationbonds
Long-term loans payable(Thousands of yen)
Due after
4 to 5 years
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years－

3,000,000

3,000,000

12,000,000

4,000,000

10,500,000

35,590,000

25,500,000

36,050,000

26,695,000

32,543,000

61,064,000

14th Fiscal Period (As of October 31, 2021)

Investment corporationbonds
Long-term loans payable(Thousands of yen)
Due after
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

3,000,000－

10,000,000

9,000,000

2,000,000

10,500,000

39,230,000

31,310,000

28,545,000

34,213,000

25,780,000

56,364,000

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

Method ofhedge
accounting

Interest rate swap
transaction
Floating interest ratereceivable and fixedinterest rate payable
Interest rate swap
Specialtransaction
accounting
treatment for Floating interest rateinterest rate receivable and fixedswapsinterest rate payable
*1
*2

Main
hedgeditem

Type ofderivative transactions

Principal
method(Thousands of yen)Contract amountNot applicable.

Long-term
loans
payable28,980,000

13,750,000(87,376)*1

Long-term
loans
payable123,391,000

101,341,000*2－Fair value is quoted by counterparties based on the prevailing market interest rates.
As derivative transactions qualifying for the special accounting treatment for interest rate swaps are accounted for with thehedged long-term loans payable, the fair value is included in the fair value of the underlying long-term loans payable (pleaserefer to “ 11. Financial Instruments; 2. Matters concerning fair value of financial instruments (Note 1)”).

Not applicable.

1. Derivatives to which hedge accounting is not applied
13th Fiscal Period (From November 1, 2020 to April 30, 2021)

15. Income Taxes

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

Not applicable.

(Thousands of yen)

14th Fiscal Period (From May 1, 2021 to October 31, 2021)

13th Fiscal Period

Not applicable.

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.

*1
*2

61

Valuation difference on assets acquired due to merger
Amortization of leasehold rights in trust(As of October 31, 2021)

2,131,089

2,092,448

40,84447,65254,501

27,488Deferred tax assets (subtotal)

2,226,435

2,167,589

Valuation allowance for total deductible temporary
difference(2,226,435)(2,167,589)

－

－

－

－

Deferred gains or losses on hedges

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

14th Fiscal Period(As of April 30, 2021)

Deferred tax assets

2. Derivatives to which hedge accounting is applied

Interest rate swap
transaction
Principal
Floating interest rate
methodreceivable and fixedinterest rate payable
Interest rate swap
Specialtransaction
accounting
treatment for Floating interest rateinterest rate receivable and fixedswapsinterest rate payableCalculation
method offair value

Not applicable.
14th Fiscal Period (From May 1, 2021 to October 31, 2021)

13. Derivative Transactions

Type ofderivative transactions

Fair value

14. Retirement Benefits
13th Fiscal Period (From November 1, 2020 to April 30, 2021)

14th Fiscal Period (From May 1, 2021 to October 31, 2021)

Method ofhedge
accounting

Of which,over
1 yearContract amount
Of which,over
1 yearFair value

Calculation
method offair value

Total deferred tax assets
Net deferred tax assets

Long-term
loans
payable33,380,000

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

Long-term
loans
payable123,391,000

106,391,000*2－Fair value is quoted by counterparties based on the prevailing market interest rates.

As derivative transactions qualifying for the special accounting treatment for interest rate swaps are accounted for with thehedged long-term loans payable, the fair value is included in the fair value of the underlying long-term loans payable (pleaserefer to “ 11. Financial Instruments; 2. Matters concerning fair value of financial instruments (Note 1)”).

62

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(%)

13th Fiscal Period

14th Fiscal Period(As of April 30, 2021)(As of October 31, 2021)

31.46

31.46

（31.80）（28.54）

Changes in valuation allowance

0.68

0.25

Reversal of reserve for reduction entry

0.12

1.25

Provision of reserve for reduction entry(0.46)(4.42)

Other

0.01

0.01

0.01

0.01

Statutory tax rate

(Note 1) A transaction conducted by Junichi Inoue as a representative of a third party (Sekisui House Asset Management, Ltd.) andthe fee amount is based on terms and conditions set forth in the Articles of Incorporation of SHR.
(Note 2) The amount includes 2,895 thousand yen of asset management fees pertaining to real estate sales.
(Note 3) Consumption taxes are not included in the transaction amount but are included in the balance at end of period.

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

[Adjustments]
Deductible cash distribution

Effective income tax rate
after application of tax-effect accounting

14th Fiscal Period (From May 1, 2021 to October 31, 2021)
Not applicable.
18. Revenue Recognition

1. Breakdown of revenue from contracts with customers
14th Fiscal Period (From May 1, 2021 to October 31, 2021)(Thousands of yen)

Revenue from contracts
with customers
16. Profit or Loss of Affiliates Ac counted for Under the Equity Method
13th Fiscal Period (From November 1, 2020 to April 30, 2021)

Sale of real estate, etc.
Utilities revenue

Not applicable.
14th Fiscal Period (From May 1, 2021 to October 31, 2021)

Other
Total

Not applicable.

17,150,000

2,452,911

186,534－

14,651,906

17,336,534

17,291,351

186,534(Note 1) 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 other assets andutilities revenue.
(Note 2) 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. In the current fiscal period, a loss on sale of real estate properties is included.

17. Transactions with Related Parties

1. Parent company and major corporate unitholders.
13th Fiscal Period (From November 1, 2020 to April 30, 2021)
Not applicable.
14th Fiscal Period (From May 1, 2021 to October 31, 2021)
Not applicable.

2. Information to understand revenue from contracts with customers
14th Fiscal Period (From May 1, 2021 to October 31, 2021)
As stated in “ 3. Summary of Significant Accounting Policies”

2. Subsidiaries and affiliates.
13th Fiscal Period (From November 1, 2020 to April 30, 2021)
Not applicable.
14th Fiscal Period (From May 1, 2021 to October 31, 2021)

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 thenext fiscal period or thereafter from contracts with customers existing at the end of this fiscal period

3. Sister companies.
13th Fiscal Period (From November 1, 2020 to April 30, 2021)(1) Balance of contract assets and contract liabilities, etc.

Not applicable.

Not applicable.
14th Fiscal Period (From May 1, 2021 to October 31, 2021)

4. Directors and major individual unitholders.
13th Fiscal Period (From November 1, 2020 to April 30, 2021)
Type

Directoror close
relative

Name

Description ofbusiness or
occupation

JunichiInoue

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

Percentage ofvoting rights
held by (in) SHR－(Thousands of yen)

14th Fiscal Period

Not applicable.

63

Net sales to external customers

Description oftransaction
Payment of asset
management feesto Sekisui House
Asset
Management, Ltd.
(Note 1)

Transaction
amount(Thousandsof yen)1,032,565

Account
item

Accounts
payable– other

Balanceat end of period(Thousands ofyen)

1,132,637

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)(From May 1, 2021
to October 31, 2021)

34,41140,544－－－－64

(2) Transaction prices allocated to the remaining performance obligations
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
the value of the items provided up to the end of the fiscal period.

Accordingly, SHR applies the provisions of Clause 80-22(2) of Accounting Standard for Revenue

Recognition and does not include related information in the notes on transaction prices allocated to theremaining performance obligations.

(2) Information about geographic areas
1ሻ Operating revenue

Information about net sales is omitted because net sales to external customers in Japan are in excessof 90% of operating revenue on the statement of income and retained earnings.
2ሻ Property, plant and equipment

Information about property, plant and equipment is omitted because the property, plant andequipment located in Japan is in excess of 90% of property, plant and equipment on the balance
sheet.

(3) Information about major customers(Thousands of yen)

19. Asset Retirement Obligations
13th Fiscal Period (From November 1, 2020 to April 30, 2021)

Name of customer

Not applicable.
14th Fiscal Period (From May 1, 2021 to October 31, 2021)

Sekisui House, Ltd.

Not applicable.

(Thousands of yen)

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

14th Fiscal Period(From May 1, 2021
to October 31, 2021)

Carrying amount

Balance at end of period
Fair value at end of period

524,375,562

1,299,890(9,168,582)

524,375,562

515,206,980

610,153,000

605,508,000

The property-related operating income in the 13th and 14th fiscal periods for investment and rental properties
is presented in “6. Notes to Statement of Income and Retained Earnings”.
21. 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
13th Fiscal Period (From November 1, 2020 to April 30, 2021)(1) Information about products and services

Information about products and services is omitted because net sales to external customers for a single

products and services category are in excess of 90% of operating revenue on the statement of income and65

products and services category are in excess of 90% of operating revenue on the statement of income andretained earnings.

(2) Information about geographic areas
1ሻ Operating revenue

Information about net sales is omitted because net sales to external customers in Japan are in excessof 90% of operating revenue on the statement of income and retained earnings.
2ሻ Property, plant and equipment

Information about property, plant and equipment is omitted because the property, plant andequipment located in Japan is in excess of 90% of property, plant and equipment on the balance

523,075,672(Note 1) Carrying amount is the book value less accumulated depreciation.
(Note 2) Net increase during the 13th fiscal period is mainly attributable to the acquisition of 3 new properties (3,914,120 thousandyen), offset by a decrease during the period mainly attributable to the disposition of one property (800,488 thousand yen) that
SHR had owned and depreciation (2,468,170 thousand yen). Net increase during the 14th fiscal period is mainly attributable
to the acquisition of 3 new properties (6,617,273 thousand yen), offset by a decrease during the period mainly attributable tothe disposition of 9 properties (14,057,491 thousand yen) that SHR had owned and depreciation (2,455,615 thousand yen).
(Note 3) Fair value at the end of the period is the appraisal value by outside real estate appraisers.

retained earnings.

Real estate leasing business14th Fiscal Period (From May 1, 2021 to October 31, 2021)

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.

Amount of increase (decrease) during period

1,364,382

Name of related segment(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single

20. Investment and Rental Properties

Balance at beginning of period

Operating revenue

sheet.

(3) Information about major customers(Thousands of yen)

Name of customer
Sekisui House, Ltd.

Operating revenue
1,363,547

Name of related segment
Real estate leasing business

22. Per Unit Information
13th Fiscal Period

14th Fiscal Period

Net assets per unit

66,738yen

67,070yen

Net income per unit

1,656yen

1,986yen(From November 1, 2020
to April 30, 2021)(From May 1, 2021
to October 31, 2021)(Note 1) Net income per unit is calculated by dividing net income by the daily weighted average number of investment units.
In addition, diluted net income per unit is not stated because there are no dilutive investment units.
The following is the basis for calculating net income per unit.

13th Fiscal Period(From November 1, 2020
to April 30, 2021)
Net income (Thousands of yen)Amount not attributable to common unitholders(Thousands of yen)
Net income attributable to common investment units(Thousands of yen)
Average number of investment units during period (Units)

7,103,009

14th Fiscal Period(From May 1, 2021
to October 31, 2021)

8,520,020－

7,103,009

8,520,020

4,288,666

4,288,666

6623. Significant Subsequent Events
SHR resolved at the Board of Directors meetings held on October 18, 2021 and October 25, 2021 to issue newinvestment units, and the payments for new investment units through public offering and third-party
allotment were completed on November 1, 2021 and November 29, 2021, respectively.

As a result, the total amount of investment was 161,283,304,673 yen and the number of investment units

issued and outstanding was 4,431,133 units.
Regarding the issuance of new investment units through third-party allotment due to overallotment, theallotment destination has notified us that they will apply for a portion of the number of investment units
scheduled to be issued.
As a result, the number of new investment units and the total amount to be paid (issue amount) related to thethird-party allotment have been changed as follows, respectively.
Issuance of new investment units through public offering
Number of new investment units to be issued
137,500 units
Issue price
87,574 yen per unit
Total amount of issue price
12,041,425,000 yen
Amount to be paid in (issue amount)
84,744 yen per unit
Total amount to be paid in (total issue amount)
11,652,300,000 yen
Payment dateNovember 1, 2021
Issuance of new investment units through third-party allotment
Number of new investment units to be issued
4,967 units(Number of investment units planned to be issued
6,875 units)
Amount to be paid in (issue amount)
84,744 yen per unit
Total amount to be paid in (total issue amount)
420,923,448 yen(Total amount planned to be paid in
582,615,000 yen)
Payment dateNovember 29, 2021
Allottee
Nomura Securities Co., Ltd.

(7) S u p p l e m e n t a r y S c h e d u l e s
14th Fiscal Period (From May 1, 2021 to October 31, 2021)
1. Schedule of securities(1) Shares

Not applicable.

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

Category
Transaction other thanmarket transaction
Transaction other thanmarket transaction

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

Contract amount (Note 1)
Of which,over 1 year

Fair value(Note 2)

28,980,000

13,750,000（87,376）

123,391,000

101,341,000(Note 3)

152,371,000

115,091,000（87,376）(Note 1) The contract amount of interest rate swap transactions is based on the notional principal amount.
(Note 2) Fair value is quoted by counterparties based on the prevailing market interest rates.

(Note 3) The fair value is omitted because the transaction meets the criteria for the special accounting treatment under the
Accounting Standards for Financial Instruments.

The funds raised through the issuance of new investment units through the public offering described above
were used to partially fund the acquisition of Akasaka Garden City, which was additionally acquired on
November 1, 2021, and the funds raised through the issuance of new investment units through third-party
allotment will be used to partially fund the acquisition of Prime Maison Nakameguro and Prime Maison
Itabashi, which are scheduled to be acquired on February 1, 2022.

67

68

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

Balanceat beginningof period

Amount ofincreaseduringperiodAmount ofdecreaseduringperiodBalanceat end ofperiod176,427,935

2,445,076

5,879,554

1,598,252

19,402

2,249,222(Thousands of yen)
Accumulated depreciation

Net balanceat end ofperiodoraccumulated
amortization

For theperiod172,993,457

19,081,364

2,294,435

153,912,093

47,426

1,570,228

270,436

31,9891,299,791

63,24135,273

2,277,190

330,564

52,193

1,946,626

153

－

－

153

153

19

0

545,942

160,687

42,126

664,503

158,552

51,461

505,950

Land in trust

359,142,655

4,655,862

8,630,808

355,167,709－－

355,167,709

Subtotal

539,964,162

7,344,270

14,635,189

532,673,243

19,841,071

2,430,099

512,832,171

2,552,025－－

2,552,025

177,980

25,4252,374,044

Buildings
in trust
Structuresin trust

Name

equipment in
Property,(Note1)(Note2)(Note1)(Note2)(Note1)(Note2)trust

plant and Vehicles inequipment trust
Tools,
furniture andfixtures in(Note2)trust(Note1)(Note2)Intangible Leasehold
assetsrights in
trust
Other
Subtotal
Total

15,411

253－

15,66512,304833

3,361

2,567,437

253－

2,567,691

190,284

26,2592,377,406

542,531,599

7,344,524

14,635,189

535,240,934

20,031,356

2,456,359

515,209,577(Note1) The increase during the fiscal period under review is mainly attributable to the acquisition of Prime Maison Shimokitazawa, Prime
Maison Meguro, and Prime Maison Ryogoku.
(Note2) The decrease during the fiscal period under review is attributable to the disposition of Esty Maison Tsukamoto, Esty Maison
Oizumigakuen, Esty Maison Higashishinagawa, Esty Maison Itabashikuyakushomae, Esty Maison Yotsuyasakamachi, Esty Maison Kamigofuku,
Esty Maison Kohoku Tsunashima, Esty Maison Kobe-sannomiya, and Esty Maison Kokura.

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

Issue date

Notes

Machineryand

5. Schedule of investment corporation bonds

SHI
Fourth Series
February 28,
Unsecured Investment
2014
Corporation Bond
SHI
Fifth Series
August 29,
Unsecured Investment
2014
Corporation Bond
SHRFirst Series
September 8,
Unsecured Investment
2016
Corporation Bond
SHR
Second Series
July 13,
Unsecured Investment
2017
Corporation Bond
SHR
Third Series
July 11,
Unsecured Investment
2019
Corporation Bond
(Green Bonds)
SHR
Fourth Series
July 11,
Unsecured Investment
2019
Corporation Bond
(Green Bonds)
SHR
Fifth Series
November 1,
Unsecured Investment
2019
Corporation Bond
(Green Bonds)
SHR
Sixth Series
February 28,
Unsecured Investment
2020
Corporation Bond
(Green Bonds)
SHR
Seventh Series
September 9,
Unsecured Investment
2020
Corporation Bond
(Green Bonds)
SHR
Eighth Series
September 9,
Unsecured Investment
2020
Corporation Bond
(Green Bonds)
SHR
Ninth Series
May 19,Unsecured Investment
2021
Corporation Bond
(Green Bonds)
Total

－

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

Redemption Use of
dateproceeds

3,000,000－

3,000,000

1.069

February 28,(Note 2) Unsecured2024

3,000,000－

3,000,000

0.871

2,000,000－

2,000,000

0.340

3,000,000－

3,000,000

0.240

July 13,2022(Note 2) Unsecured

4,000,000－

4,000,000

0.220

July 11,2024(Note 2) Unsecured

2,500,000－

2,500,000

0.570

July 11,2029(Note 2) Unsecured

5,000,000－

5,000,000

0.220

November 1,(Note 2) Unsecured2024

2,000,000－

2,000,000

0.500

February 28,(Note 3) Unsecured
2030

4,000,000－

4,000,000

0.250

September 9,(Note 2) Unsecured
2025

4,000,000－

4,000,000

0.510

September 9,(Note 2) Unsecured
2030

－

－

2,000,000

0.460

May 19,2031

32,500,000－

34,500,000－－

August30,2024

Security(Note 2) Unsecured

September 8,(Note 2) Unsecured
2026(Note 2) Unsecured－－(Note 1) The funds are used to repay borrowings and acquire trust beneficiary interests in real estate, etc.
(Note 2) The proceeds are used as funds for repayment of loans payable.
(Note 3) The proceeds are used as funds for redemption of existing investment corporation bonds.
(Note 4) These investment corporation bonds are equipped with pari passu clause among specified investment corporation bonds.
(Note 5) The following is the maturity schedule of investment corporation bonds within five years of the balance sheet date.

Due in1 year or less
Investment Corporation Bonds

69

3,000,000(Thousands of yen)
1 to 2 years

2 to 3 years－

10,000,000

3 to 4 years
9,000,000

4 to 5 years
2,000,000

70

6. Schedule of loans payable
category

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

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

Amount ofincreaseduringperiodAmount ofdecreaseduringperiod1,160,000

960,000－－

960,000－－

880,000－

880,000－

800,000－－－－

800,000

Balanceat beginning of
period1,160,000

300,000

Balanceat end ofperiodAverageinterest rate(%)
(Note 1)0.25499

300,000
1.17350(Thousands of yen)
Repayment Repaymen Use of
Security
due datet method proceedsMar. 31,2022(Note4)

Amount ofincreaseduringperiodAmount ofdecreaseduringperiod1,000,000－－

1,000,000

MUFG Bank, Ltd.

1,300,000
1,000,000

－
－

－
－

1,300,000

Mizuho Bank, Ltd.

600,000－－

600,000

300,000－－

300,000

800,000－－

800,000

500,000－－－－

500,000

500,000
700,000－－

700,000

200,000－－

200,000

200,000－－

200,000－－

200,000

200,000－－－－－

200,000

LenderDevelopment Bank of JapanInc.

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

Purchaseof assets
andrelatedexpensesFeb. 28, 2022
(Note2)

category

300,000－

400,000－－

400,000

MUFG Bank, Ltd.

500,000－－

500,000

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

Mizuho Bank, Ltd.

400,000－－

400,000

Shinkin Central Bank

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

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

Development Bank of JapanInc.
The Norinchukin Bank

500,000－

1,500,000

980,000－－

980,000

800,000－

800,000

2,450,000－－

2,450,000－

1,950,000－

1,950,000－

900,000
2,500,000

－
－

－
－

2,500,000

2,000,000－－

2,000,000
5,100,000

2,400,000－－

3,700,000－－

3,700,000－－

2,000,000

900,000－－

900,000

1,400,000－－

1,400,000

800,000－－

800,000

700,000

－
－
－

－
－
－

700,000－－

3,700,000－－

700,000

300,000－－

300,000

300,000－－－－

300,000

500,000
500,000－－

500,000

The Norinchukin Bank

800,000

THE BANK OF FUKUOKA,
LTD.

500,000－

Aug. 31, 2022
(Note2)0.94060

1.47450

Nov. 30, 2024

750,000－

500,000

800,000

Purchaseof assets
andrelatedexpenses

0.73975

Feb. 28, 2022
(Note2)

1,000,000

500,000

Feb. 28, 2023
0.86650

200,000

The Hiroshima Bank, Ltd.

200,000

The Yamaguchi Bank, Ltd.

200,000

MUFG Bank, Ltd.

700,000

700,000

0.88470

650,000－－

650,000

0.88500

350,000－－

350,000

650,000－－

650,000

350,000－－

350,000

300,000－－－－

300,000

400,000－－－－

700,000－－

700,000

350,000－－

350,000

300,000－－

300,000

100,000－－

100,000

100,000－－

2,100,000－－

2,100,000

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

750,000

MUFG Bank, Ltd.

500,000

Mizuho Bank, Ltd.
LongSumitomo Mitsui Banking
term
Corporation
loans
Sumitomo Mitsui Trust
payableBank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited
Mizuho Bank, Ltd.
Development Bank of JapanInc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.
MUFG Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

200,000
200,000
200,000

750,000

100,000

450,000－－

450,000

450,000－－

450,000

1,000,000－－

1,000,000

700,000
1,100,000

－
－

－
－

1,100,000

1,100,000－－

1,100,000

450,000－－

450,000－－

500,000

300,000－－－－－

300,000

Aozora Bank, Ltd.

200,000

The Yamaguchi Bank, Ltd.

100,000

MUFG Bank, Ltd.

450,000－－－－－

600,000－－

600,000

200,000－－

200,000

100,000－－

100,000

100,000－－

100,000

100,000

－
－
－

－
－
－

100,000

100,000

The Hiroshima Bank, Ltd.

100,000

1.01850

Lump- Purchase
Unsum
of assets secured
and
UnNov. 30, 2023 payment
atrelated guaranmaturity expenses
teed

0.67400
Aug. 31, 2023
0.68030

700,000

500,000

The 77 Bank, Ltd.

1.00850

400,000

300,000

The Senshu Ikeda Bank,Ltd.
The Shizuoka Bank, Ltd.

Nov. 30, 2022
0.89470

500,000

The Norinchukin Bank

Shinkin Central Bank

Repayment Repaymen Use of
Security
due datet method proceeds

0.85250

200,000

Development Bank of JapanInc.
THE BANK OF FUKUOKA,
LTD.

71

Averageinterest rate(%)
(Note 1)The 77 Bank, Ltd.

Mizuho Bank, Ltd.

500,000－－

Unsecured
Unguaranteed

Lumpsum
payment
atmaturity

Balanceat end ofperiod－－－－－Development Bank of JapanInc.
Mizuho Bank, Ltd.

Repayment ofloans
payableNov. 30, 2021
(Note2)700,000

700,000－－

0.96475

The Senshu Ikeda Bank,Ltd.
The Shizuoka Bank, Ltd.

Aug. 31, 2021

4,600,000

3,700,000

750,000

0.83600

The Norinchukin Bank

Feb. 28, 2022
(Note2)2,400,000

2,000,000

700,000

1.11000

900,000－－

5,100,000

Mizuho Bank, Ltd.

Sumitomo Mitsui Banking
Corporation
Resona Bank, Limited

500,000－

4,600,000

Mizuho Bank, Ltd.

－

300,000

1,500,000

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

－－Balanceat beginning of
period

0.63800

300,000
200,000
100,000

Feb. 29, 2024

450,000

0.50500

100,000
100,00072

category

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

Amount ofincreaseduringperiodAmount ofdecreaseduringperiodBalanceat end ofperiod200,000
200,000

400,000－－

400,000

500,000－－

500,000

300,000－－－－－

300,000

Mizuho Trust & Banking Co.,

300,000Ltd.

800,000
800,000－－

800,000

400,000－－

400,000

1,810,000

－
－
－
－
－

1,810,000

300,000

Mizuho Bank, Ltd.

900,000

MUFG Bank, Ltd.

600,000

Mizuho Bank, Ltd.

200,000－－－－－

300,000－

600,000
400,000

440,000

800,000

440,000
900,000

950,000
750,000－－－－

950,000

The Norinchukin BankMUFG Bank, Ltd.

650,000－－

650,000

550,000－－

550,000

MUFG Bank, Ltd.

500,000－－

500,000

MUFG Bank, Ltd.

500,000－－－－

500,000－－－－

500,000－－

1,900,000

Mizuho Bank, Ltd.

100,000

The 77 Bank, Ltd.

500,000

The Hiroshima Bank, Ltd.

500,000

100,000

－

－
－
－
－
－

400,000

320,000－

320,000－

1,500,000

500,000－

500,000－

200,000－

200,000－－

1,200,000－

480,000－

480,000－

500,000

990,000

550,000－－－

220,000－－

220,000－

220,000

－
－
－
－

－
－
－
－

176,000
2,352,000
750,000－－

600,000

1,050,000－－

1,050,000

650,000－－

650,000

950,000－－－

950,000－

550,000－

0.77880

Lumpsum
Feb. 27, 2026
payment
atmaturity

Unsecured
Unguaranteed

Development Bank of Japan
Longtermloanspayable0.45254

Nov. 30, 2023

0.61380

Aug. 29, 2025

0.28568

300,000

0.34900

Mizuho Bank, Ltd.

2,459,000

2,459,000

260,000－－

260,000

900,000－－

900,000

565,000－－

565,000

0.48000－－

450,000

0.56500

Mizuho Bank, Ltd.

1,332,000－－

1,332,000

390,000－－

390,000

1,350,000－－

1,350,000

MUFG Bank, Ltd.

500,000－－

500,000

Mizuho Bank, Ltd.

500,000－－

500,000

500,000－－

500,000

700,000－－

700,000

Mizuho Trust & Banking Co.,Ltd.

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

Jul. 13, 2022
(Note2)200,000－－

200,000

Resona Bank, Limited

200,000
100,000－－

200,000

The Norinchukin Bank

－
－

－
－

1,000,000

1,000,000

Mizuho Bank, Ltd.

800,000－－

700,000－－

700,000

400,000－－

400,000

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

Aug. 31, 2021

Aug. 30, 2024

Lumpsum
payment

Aug. 30, 2024

maturity

Repayme
nt of

Un-

loans

securedpayableFeb. 26, 2027
0.57500

0.29900

0.30900

May. 31, 2023

0.39580

800,000

400,000－－

400,000

Resona Bank, Limited

200,000－－

200,000

The Norinchukin Bank

200,000－－

200,000

Ltd.

Aug. 31, 2027

100,000

MUFG Bank, Ltd.

Corporation

0.353410.35900

450,000

Corporation

Feb. 27, 2026

at

MUFG Bank, Ltd.

Ltd.

0.34800

0.25499

376,000

Limited

0.32000

0.78300－－

Sumitomo Mitsui Banking

750,000
650,000

Repayment ofloans
payableMay. 31, 2023

0.70000

4,200,000－

Sumitomo Mitsui Banking

0.37000

0.63500－－

Inc.

Aug. 31, 2021

Security

0.56500－

Corporation

proceeds

0.42622

376,000

Ltd.

0.28499

0.41800

300,000

Sumitomo Mitsui Banking

Use oft method0.34000

MUFG Bank, Ltd.

Inc.

Mizuho Trust & Banking Co.,

1,050,000

600,000

550,000Ltd.

550,000－

Development Bank of JapanInc.

Mizuho Trust & Banking Co.,

260,000

176,000

650,000

Limited0.72500－－

220,000

MUFG Bank, Ltd.

Sumitomo Mitsui Trust Bank,

Development Bank of Japan

300,000

750,000

Sumitomo Mitsui Banking

500,000－－－－－

The Norinchukin Bank

Mizuho Bank, Ltd.
Corporation

700,000

870,000－－－

Feb. 28, 2025

800,000－

210,000

0.67000

300,000

870,000－

Sumitomo Mitsui Banking

Repaymendue date

500,000

1,480,000

0.61000

Repayment

750,000－

300,000

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

Resona Bank, Limited

1,480,000－－

1,050,000

650,000

600,000－－

Mizuho Bank, Ltd.

－－

500,000

750,000－－

300,000

2,352,000

650,000

1,900,000

The Yamaguchi Bank, Ltd.

MUFG Bank, Ltd.

1,050,000－

Aozora Bank, Ltd.

The Norinchukin Bank

－

－

－

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

－

1,900,000

600,000

500,000

260,000

1,050,000

Corporation－

Mizuho Bank, Ltd.

600,000

300,000

1,200,000

MUFG Bank, Ltd.

－－

700,000

990,000－

4,200,000

800,000

MUFG Bank, Ltd.

600,000

Mizuho Bank, Ltd.

MUFG Bank, Ltd.

210,000

1,050,000

200,000

Mizuho Bank, Ltd.

300,000

0.67000

750,000－－

Inc.

Sep. 8, 2026

(Note 1)－－1,500,000

The Norinchukin Bank

0.60500

period(%)

period－－Development Bank of Japan

Repayment ofloans
payableperiodat end of

1,900,000

MUFG Bank, Ltd.

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

0.59750

Aug. 29, 2025

duringinterest rate

750,000

Limited

0.57000

duringAverage
Balance

MUFG Bank, Ltd.

－
－
－
－
－

300,000

600,000

decrease

1,050,000

Sumitomo Mitsui Trust Bank,

1,000,000

Amount ofincrease

Mizuho Bank, Ltd.
Corporation

Aug. 30, 2024

Amount of

MUFG Bank, Ltd.
Sumitomo Mitsui Banking

0.49500at beginning of
period－Mizuho Bank, Ltd.

Long- Development Bank of Japanterm Inc.
loans THE BANK OF FUKUOKA,
payable LTD.

Lender

－600,000

Shinkin Central Bank

category－

1,000,000

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

Balance－

MUFG Bank, Ltd.

MUFG Bank, Ltd.

Repayment Repaymen Use of
Security
due datet method proceeds

200,000

MUFG Bank, Ltd.

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

Averageinterest rate(%)
(Note 1)200,000－－－－－

The Norinchukin Bank

73

Balanceat beginning of
period

0.40580

Aug. 30, 2024

74

category

LenderShinkin Central Bank

200,000

Amount ofdecreaseduringperiod－－－200,000

0.41388

MUFG Bank, Ltd.

1,700,000

1,000,000

0.55600

Mizuho Bank, Ltd.

－

700,000

1,000,000

Mizuho Bank, Ltd.

800,000－－－

Sumitomo Mitsui Banking
Corporation

700,000－

Balanceat end ofperiod

－900,000－－

800,000

200,000－－－－

200,000

Mizuho Bank, Ltd.

605,000－－

605,000

Sumitomo Mitsui Banking
Corporation

800,000－－

800,000

2,500,000－－

2,500,000－－

400,000

300,000－－

300,000

300,000－－

300,000

200,000－－

200,000

200,000－－

200,000

200,000－－

200,000

1,410,000－－

1,410,000

1,200,000－－

1,200,000

1,300,000－－

1,300,000

600,000－－

600,000

700,000－－

700,000

500,000

0.56600

500,000
1,400,000

0.68500

200,000－－

200,000

1,000,000－－

1,000,000

1,500,000－－

1,500,000

1,230,000－－

1,230,000

200,000－－

200,000

600,000－－

600,000

800,000－－

800,000

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.
0.69500

0.28100

0.42000－

900,000

THE BANK OF FUKUOKA,
LTD.

400,000－－

400,000

Shinkin Central Bank

300,000－－

300,000

The 77 Bank, Ltd.

300,000－－

The Yamaguchi Bank, Ltd.

300,000－－

300,000

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.41000

MUFG Bank, Ltd.

1,170,000－－

1,170,000

0.46000

900,000－－

900,000

300,000－－

300,000

1,200,000

－
－

－
－

1,200,000

0.44000

800,000

1,800,000－－

1,800,000

MUFG Bank, Ltd.

1,400,000－－

1,400,000

Mizuho Bank, Ltd.

300,000－－

300,000

1,000,000－－

1,000,000

800,000－

800,000

0.27300

0.44100

LumpUnRepayme
sum
securednt ofpayment
Unloansatguaranpayablematurity
teed

Feb. 27, 2026

Feb. 28, 2029

Nov. 30, 2023

May. 29,2026

400,000－－

400,000

545,000－－

545,000

500,000－－

500,000

0.59900

0.29150

0.49500－－

MUFG Bank, Ltd.

1,542,000
300,000－－

1,542,000

Mizuho Bank, Ltd.

－－

500,000－－

500,000

2,500,000－－

2,500,000

500,000－－

500,000

THE BANK OF FUKUOKA,
LTD.

200,000－－

200,000

MUFG Bank, Ltd.

400,000
990,000－－

400,000

Mizuho Bank, Ltd.

－－

1,840,000－－

1,840,000

600,000－－

600,000

700,000－－

700,000

500,000－－

500,000

The Norinchukin Bank

400,000
200,000－－－

400,000

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

－－－

200,000－－－

400,000

The Yamaguchi Bank, Ltd.

－－－1,370,000

0.45000
0.36000

Development Bank of JapanInc.
MUFG Bank, Ltd.

200,000
400,000
1,370,000

Aug. 29, 2025

Aug. 31, 2028

0.47500

300,000

0.29700

Feb. 28, 2025

0.28700

990,000

0.46600

UnLumpRepayme
securedsum
nt of
Unpayment
loans
guaranatAug. 31, 2027
payableteedmaturity

200,000
200,000
200,000

400,000－－

400,000

750,000
640,000－－

750,000

Mizuho Bank, Ltd.

640,000－－

Sumitomo Mitsui Banking
Corporation

610,000－

610,000－

MUFG Bank, Ltd.

300,000
100,000－－－－

300,000

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation

800,000－－

800,000

Sumitomo Mitsui Trust
Bank, Limited

1,380,000－－

1,380,000

MUFG Bank, Ltd.

800,000
210,000－－－－

800,000

Mizuho Bank, Ltd.
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
1,020,000

－
－

－
－

1,100,000

The Norinchukin Bank

370,000－－

370,000

Development Bank of Japan
Inc.

May. 31, 2028

0.28000

500,000

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

Repayment Repaymen Use of
Security
due datet method proceeds

0.50000

500,000

MUFG Bank, Ltd.

200,000－－

Aug. 31, 2023

300,000－

The Norinchukin Bank

Feb. 29, 2028

0.27100－

800,000

Resona Bank, Limited

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

900,000

200,000

MUFG Bank, Ltd.

2,400,000

The Norinchukin Bank

Sumitomo Mitsui Banking
Corporation

600,000－

400,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited－

800,000

200,000

Mizuho Bank, Ltd.

－

900,000－

Development Bank of JapanInc.
The Senshu Ikeda Bank,Ltd.
MUFG Bank, Ltd.

1,200,000

600,000

Averageinterest rate(%)
(Note 1)1,300,000

Development Bank of Japan
Inc.

－

Resona Bank, Limited－

Resona Bank, Limited

200,000

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

－

400,000

1,000,000

Mizuho Bank, Ltd.

1,200,000

200,000－

Longterm Resona Bank, Limited
loans Shinkin Central Bank
payableMUFG Bank, Ltd.

－
－

－

－

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

－－1,700,000

1,300,000

Balanceat end ofperiod－1,000,000

Mizuho Bank, Ltd.

Aug. 31, 2026

Amount ofdecreaseduringperiod－2,400,000

The Yamaguchi Bank, Ltd.

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

Amount ofincreaseduringperiodBalanceat beginning of
period－Mizuho Bank, Ltd.

The Senshu Ikeda Bank,Ltd.
The 77 Bank, Ltd.

Lender400,000

1,400,000

THE BANK OF FUKUOKA,LTD.

category

200,000

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

Repayment Repaymen Use of
Security
due datet method proceeds

800,000－－－－

The Norinchukin Bank

Averageinterest rate(%)
(Note 1)

Amount ofincreaseduringperiodMUFG Bank, Ltd.

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

75

Balanceat beginning of
periodAug. 31, 2027

0.27364

Nov. 30, 2022
(Note3)0.28600

May. 30, 2025

100,000

210,000

0.50700
Nov. 30, 2028

1,020,000
0.4350076

category

LenderBalanceat beginning of
periodAmount ofincreaseduringperiodAmount ofdecreaseduringperiodAverageinterest rate(%)
(Note 1)

Balanceat end ofperiodMUFG Bank, Ltd.

200,000
600,000－－－－

200,000

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation

500,000－－

500,000

Sumitomo Mitsui Trust
Bank, Limited

500,000－－

500,000

500,000－－

500,000

1,000,000

－
－
－
－
－

1,000,000

THE BANK OF FUKUOKA,LTD.
Shinkin Central BankMUFG Bank, Ltd.

300,000

Mizuho Bank, Ltd.

700,000

Sumitomo Mitsui Banking
Corporation

600,000－－

600,000

500,000－－

500,000

500,000－－

500,000

500,000－－

1,000,000－－

1,000,000

500,000－－

Mizuho Bank, Ltd.

－

1,280,000－－－

500,000

500,000

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－

200,000－

200,000－－

300,000－－

300,000

220,442,000

8,760,000

The 77 Bank, Ltd.

Mizuho Trust & Banking
Co., Ltd.
LongResona Bank, Limitedtermloans The Norinchukin Bank
payable The Senshu Ikeda Bank,Ltd.
The Yamaguchi Bank, Ltd.
The Hiroshima Bank, Ltd.

Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited
The Norinchukin Bank
Total

500,000
1,000,000

210,000

0.28400

600,000－－－－－

The Shizuoka Bank, Ltd.

Repayment Repaymen Use of
Security
due datet method proceeds

0.29400

Aug. 29, 2025

500,000
1,000,000
300,000

0.55850700,000

0.56850

Feb. 28, 2029

500,000

LumpUnRepayme
sum
securednt ofpayment
Unloansatguaranpayablematurityteed

500,000

0.24727

Aug. 30, 2024

0.47500

Aug. 31, 2029

210,000

13,760,000 215,442,000(Note 1) Average interest rate is the weighted average interest rate during the period. Interest rates are rounded to six decimal
places. The interest rates for loans hedged by interest rate swap transactions used to hedge the risk of interest rate

fluctuations are the interest rates reflecting the effect of the interest rate swaps.
(Note 2) As of the end of the fiscal period under review, these loans are recorded as “Current portion of long-term loans payable” in“Current liabilities” on the balance sheet.
(Note 3) Early repayment was made on May 20, 2021.
(Note 4) Early repayment was made on August 31, 2021.
(Note 5) The following is the maturity schedule of long-term loans within five years of the balance sheet date.

Due in1 year or lessLong-term loans payable

77

39,230,000(Thousands of yen)
1 to 2 years
31,310,000

2 to 3 years
28,545,000

3 to 4 years
34,213,000

4 to 5 years
25,780,000

78

79

80

Unitholder Information

Unitholder Information

Unitholder Memo

Change in Investment Unit Price and Trading Volume (From December 3, 2014 to November 30, 2021)

Unitholder MemoSHR´s investment unit price (left axis)

TSE REIT Index

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

90,000Account Closing Date

End of April and October of each year

Record Date for Determining
Distribution Payment

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

General Meeting of Unitholders

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

Date to Determine Exercising of
Voting Rights by Unitholders

Date stipulated in Article 12 of the Articles of Incorporation

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

Newspaper Posting Public Notice

The Nikkei

Transfer Agent

Mizuho Trust & Banking Co., Ltd.

Contact

Stock Transfer Agency Department,
Mizuho Trust & Banking Co., Ltd.
2-8-4 Izumi, Suginami-ku, Tokyo
Phone: 0120-288-324 (Toll Free only in Japan)

300,000

70,000200,000

50,000100,000

30,0000Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Nov.
2021
2014 2015
2016
2017
2018
2019
2020
(Note 1) Closing price and trading volume of the investment unit of SHR in a regular trading session at Tokyo Stock Exchange, Inc. are indicated.
(Note 2) As a two-for-one split of investment units was implemented on May 1, 2018, investment units have been traded at halved (the ex-rights) unit price on and after April 25, 2018. In consideration of the impact of the split, the above graph is based on actual figures of “Investment Unit Price” for April 24, 2018 and earlier being divided by two and actual figures of “Trading
Volume” being multiplied by two.
(Note 3) Change in TSE REIT Index is indicated after converting the closing price of TSE REIT Index on the listing date of SHR (December 3, 2014) to JPY 66,000, the amount gained after adjusting
the two-for-one split to the closing price of the investment unit of SHR in a regular trading session. Furthermore, TSE REIT Index refers to the weighted average-type index of market
capitalization of all REIT counters listed on the Tokyo Stock Exchange.

Concerning Procedures to Change Registered Address, etc.

Unitholder Composition(As of the end of 14th FP ended Oct. 2021)

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

Other domestic firms

3,035,554 units (70.8%)

Number ofinvestment units
owned by owner type278,161 units (6.5%)
703,511 units (16.4%)
271,440 units (6.3%)

Number ofunitholders
by owner type
300 persons (1.6%)
327 persons (1.8%)

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

Total: 4,288,666 units

Total: 18,637 persons

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

17,788 persons (95.4%)

222 persons (1.2%)(Note) Total of ratios may not add up to 100.0% as ratios are indicated as rounded to the first decimal place.

IR Calendar
Closing monthof FP

Announcement offinancial resultsfor FP

Apr.

Jun.
May

Closing monthof FP

Announcement offinancial resultsfor FP

Oct.

Dec.

Aug.
Jul.

Sep.

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

81

Guide to website of Sekisui House Reit, Inc.
https://sekisuihouse-reit.co.jp/en/

Nov.

Feb.
Jan.

Mar.

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

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

82