ARES Japan Property Index(AJPI） Summary Sheet

AJPI Flash
Preliminary Figure Date
Latest Final Figure Date
Previous Final figure Date

2024/06/30
2023/12/31
2023/09/30
Data update

The Universe of ARES Property Index(AJPI)

Preliminary figure
Data※(reference)
yet to be finalized

2024/9/30

Preliminary figure※
Quarterly returns Latest Final figure
Non-annualized(Quarterly returns(reference)
Non-annualized)
yet to be finalized

Latest Final figure Date

Market Value(Million yen)
Percent of Total Properties

Market Value(Million yen)
Percent of TotalProperties

Previous Finalfigure(Quarterly returns
Non-annualized)

1year return(at the time of thelatest final figuredate)

ARES Japan Propety Index
Total Index

4,804,018(100.00%)

553

31,429,666(100.00%)

5,569

Total Return
Income Return
Capital Return

1.55%
1.02%
0.53%

1.06%
1.01%
0.05%

1.06%
1.01%
0.05%

4.55%
4.08%
0.47%

0.91%
0.93%
-0.02%

0.76%
0.94%-0.19%

0.66%
0.93%-0.27%

2.98%
3.78%-0.79%

1.06%
1.03%
0.03%

1.21%
1.02%
0.19%

1.32%
1.02%
0.31%5.74%
4.14%
1.59%

1.95%
1.06%
0.89%

1.18%
1.11%
0.07%

1.05%
1.10%
-0.05%

4.16%
4.47%-0.30%

3.49%
1.30%
2.19%

1.78%
1.24%
0.54%

1.67%
1.25%
0.43%

7.16%
4.82%
2.34%

1.21%
1.01%
0.21%

1.16%
1.01%
0.16%

1.38%
1.01%
0.37%

5.95%
4.12%
1.82%

Property Type Subindices
Office2,700,717(56.22%)

213

12,349,896(39.29%)1,295

Total Return
Income Return
Capital ReturnResidential

151,114(3.15%)

107

5,088,851(16.19%)2,394

Total Return
Income Return
Capital ReturnRetail500,291(10.41%)61

3,897,580(12.40%)558

Total Return
Income Return
Capital ReturnHotel

1,161,857(24.19%)138

2,155,671(6.86%)

363

Total Return
Income Return
Capital Return

Logistics Facility

184,290(3.84%)

21

6,774,724(21.56%)638

Total Return
Income Return
Capital Return

AJPI(ARES Japan Property Index)◆About AJPI
ARES Japan Property Index(AJPI) is a Japanese property index published by the association for real estate securutizaiton(ARES).The universe of AJPI comprises real estate,including trust beneficiary right of real estate, owned by listed-J-REITs as well as core and core-plus unlisted private real estate funds in Japan. As for the real estate owned byunlisted private real estate funds, ARES is provided with actual performance data of the funds by “AJPI Support Member”, the real estate asset management companies that
concluded a contract concerning the data contribution with ARES.
◆Characteristics of AJPIAJPI is a Japanese property index characterized mainly by the following three features.
(1) AJPI is the only Japanese real estate investment index that major Japanese asset management companies jointly get aboard.
(2) The universe of AJPI consists of properties owned by “core funds” mainly aimed at obtaining income returns mainly.
(3) The methodology of AJPI is base on that of NCREIF index in the US which is the most prevalent in the US and is well known over the world.
◆The methodology for the calculation of AJPI（Outline）
In the calculation of AJPI, each property’s return is calculated from actual performance at first, then the market value-weighted average of the property returns is calculated as AJPI’s returns and reflected in the index.
The methodology for each property’s return calculation is based on that for NCREIF Property Index(NPI) in the US.
As for the detail of the AJPI calculation methodology, please see the “Definition Summary of AJPI” on the ARES AJPI&AJFI website
https://index.ares.or.jp/en/ajpi/definition.php◆Usage notices
In utilizing AJPI, please take good note about the “Usage notices for the AJPI and the AJFI” on the next page.

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ARES Japan Property Index(AJPI） Summary Sheet

AJPI Flash
Preliminary Figure DateLatest Final Figure Date
Previous Final figure Date

2024/06/30
2023/12/31
2023/09/30

Usage notices for the AJPI and the AJFI

・AJPI (ARES Japan Property Index) and AJFI (ARES Japan Fund Index) are Japanese real estate investment indices based on the actual
investment results, reflecting market value-weighted-average returns. As market values for the weighting, we use real estate appraisal values in
AJPI and net asset values based on real estate appraisal values in AJFI respectively.
・AJPI and AJFI tend to reflect the characteristics of real Estate appraisal values.
The market values used in the calculations of AJPI and AJFI differ from those of the other indices of listed financial products. The market values
for AJPI and AJFI are not based on transaction prices.

･AJPI and AJFI tend to be influenced by changes in the investment results of real estate and real estate funds with large market values because
these indices are market value-weighted average returns.
・In case that the total values of the assets or the NAVs are not sufficiently large in the indices’ universe of AJPI, AJFI or their subindices, specificreal estate and real estate funds tend to affect the average returns, that could cause biases in the indices as a result.
・As for the subindices of AJPI and AJFI, the biases mentioned above are more likely to be brought about because their universe is restricted in linewith certain criteria. ARES publishes some subindices with explanatory notes, such as AJFI-Open Ended Unlisted REITs ”AJFI-OURs”, in light of
their usefulness despite possible biases in these subindices.
Please pay sufficient attention to the instability and the possible biases in using these subindices.
・Among the AJFI subindices (AJFI-Low LTV, AJFI-Medium LTV and AJFI-High LTV) whose universes are classified by LTVs, uniformity is notassured in factors other than LTV. Therefore, the levels and volatilities in AJFI-Low LTV, AJFI-Medium LTV and AJFI-High LTV may not reflect
factors caused only by differences in LTVs. Under certain market conditions or universes, the levels and volatilities may be greatly affected by nonLTV factors.
・ARES publishes a “Gross total index” in which asset management fees are not taken into consideration as an expense as well as a “Net totalindex” in which asset management fees are taken into consideration as an expense. The management fees here are those for the period.
・The differences between the “Gross total index” and the “Net total index” show the influence of the asset management fees. The asset
management fees tend to be more influenced by the real estate funds with larger NAVs because AJFI is the real estate fund index based onmarket value -weighted-average returns.
・When a real estate property is acquired, the NOI of the property will be higher owing to the fixed asset tax and the city planning tax on the asset
and have positive effects on returns because the taxes will usually be recognized as part of the asset value instead of recorded as expenses at thetime of a real estate acquisition.
As for AJPI, the impact of the taxes is largely reduced by not including properties acquired during the period.
On the other hand, AJFI reflects the tax effect at the time of property acquisition since AJIF is based on the profit and loss of real estate funds. Areal estate fund tends to be affected when the ratio of newly acquired assets to its total asset is high.
・Core real estate funds and their own real estate included in AJPI and AJFI are long term and stable investment targets. Therefore, there arecases where it is beneficial that mid-term and long-term fluctuations as well as short-term ones are taken into account.
・Besides the points to remember in AJPI and AJFI, such as their characteristics and possible biases mentioned above, it is not appropriate for theinvestment performance of real estate or real estate fund to be evaluated solely on the basis of returns. For example, lower returns could becaused by short-time fluctuations, investments mainly focused on good quality real estate with low risks, low levels of LTVs in line withconservative financial strategies,.
・In evaluating investment results, it is inappropriate to compare the returns of each real estate property and each real estate fund with AJPI andAJFI returns.
Please take good note that various other factors should be taken into consideration.

2 / 7 PageARES Japan Property Index(AJPI） Summary Sheet

AJPI Flash
Preliminary Figure Date
Latest Final Figure Date
Previous Final figure Date

2024/06/30
2023/12/31
2023/09/30
Data update

The Universe of ARES Property Index(AJPI)

Preliminary figure
Data※(reference)
yet to be finalized

2024/9/30

Preliminary figure※
Quarterly returns Latest Final figure
Non-annualized(Quarterly returns(reference)
Non-annualized)
yet to be finalized

Latest Final figure Date

Market Value(Million yen)
Percent of Total Properties

Market Value(Million yen)
Percent of TotalProperties

Previous Finalfigure(Quarterly returns
Non-annualized)

1year return(at the time of thelatest final figuredate)

Regional Subindices (Office)Tokyo 3CBDs

1,018,028(21.19%)82

5,096,194(16.21%)

464

Total Return
Income Return
Capital Return

Tokyo 23CBDs

2,074,928(43.19%)139

8,856,174(28.18%)841

Total Return
Income Return
Capital Return

Nagoya73,850(1.54%)

11394,581(1.26%)

56

Total Return
Income Return
Capital Return

Osaka192,930(4.02%)

17960,179(3.06%)

97

Total Return
Income Return
Capital Return

Fukuoka0(0.00%)0261,989(0.83%)

41

Total Return
Income Return
Capital Return

Regional Subindices (Residential)
Tokyo 3CBDs
00(0.00%)

859,031(2.73%)

269

Total Return
Income Return
Capital Return

Tokyo 23CBDs

78,694(1.64%)

40

3,444,636(10.96%)

1,342

Total Return
Income Return
Capital Return

Nagoya14,452(0.30%)

17196,438(0.63%)

148

Total Return
Income Return
Capital ReturnOsaka

24,414(0.51%)

16327,835(1.04%)

169

Total Return
Income Return
Capital Return

Fukuoka0(0.00%)0122,600(0.39%)

72

Total Return
Income Return
Capital Return3 / 7 Page

0.69%
0.79%
-0.10%

0.61%
0.80%-0.19%

0.59%
0.80%-0.21%

2.44%
3.22%-0.78%

0.75%
0.86%-0.11%

0.63%
0.86%-0.22%

0.53%
0.85%-0.32%

2.41%
3.43%-1.02%

1.16%
1.12%
0.05%

1.12%
1.12%
0.01%

1.23%
1.13%
0.10%

4.85%
4.59%
0.26%

1.37%
1.00%
0.37%

1.42%
1.06%
0.36%

1.48%
1.05%
0.43%

6.10%
4.31%
1.79%

#N/A
#N/A
#N/A1.37%
1.15%
0.22%

1.59%
1.16%
0.44%

6.38%
4.68%
1.70%

#N/A
#N/A
#N/A

1.32%
0.99%
0.34%

1.48%
0.98%
0.50%

6.37%
3.97%
2.39%

1.01%
0.96%
0.05%

1.26%
0.97%
0.29%

1.37%
0.97%
0.40%

5.95%
3.94%
2.01%

1.03%
1.02%
0.01%

0.89%
1.04%
-0.16%

1.00%
1.05%-0.05%

4.06%
4.28%-0.22%

1.06%
1.08%-0.02%

1.02%
1.03%-0.02%

1.31%
1.04%
0.27%

5.56%
4.25%
1.31%

#N/A
#N/A
#N/A

0.85%
1.15%
-0.29%

1.09%
1.15%-0.06%

5.18%
4.73%
0.45%

ARES Japan Property Index(AJPI） Summary Sheet

AJPI Flash
Preliminary Figure Date
Latest Final Figure Date
Previous Final figure Date

2024/06/30
2023/12/31
2023/09/30
Data update

The Universe of ARES Property Index(AJPI)

Preliminary figure
Data※(reference)
yet to be finalized

2024/9/30

Preliminary figure※
Quarterly returns Latest Final figure
Non-annualized(Quarterly returns(reference)
Non-annualized)
yet to be finalized

Latest Final figure Date

Market Value(Million yen)
Percent of Total Properties

Market Value(Million yen)
Percent of Total
Properties

Previous Finalfigure(Quarterly returns
Non-annualized)

1year return(at the time of thelatest final figuredate)

Regional Subindices (Retail)Tokyo 3CBDs0(0.00%)

0305,776(0.97%)

51

Total Return
Income Return
Capital Return

Tokyo 23CBDs

151,985(3.16%)

19

1,147,618(3.65%)

165

Total Return
Income Return
Capital Return

Nagoya0(0.00%)

00(0.00%)

0

Total Return
Income Return
Capital Return

Osaka0(0.00%)

0331,047(1.05%)

38

Total Return
Income Return
Capital Return

Fukuoka0(0.00%)

0151,081(0.48%)

23

Total Return
Income Return
Capital Return

4 / 7 Page

#N/A
#N/A
#N/A

0.42%
0.71%
-0.28%

0.28%
0.67%-0.39%

2.32%
2.84%-0.52%

0.94%
0.89%
0.05%

0.92%
0.84%
0.08%

0.86%
0.83%
0.03%

3.15%
3.38%
-0.23%

----

#N/A
#N/A
#N/A

2.82%
0.88%
1.94%

1.46%
0.86%
0.60%

5.81%
3.59%
2.23%

#N/A
#N/A
#N/A

0.85%
0.97%
-0.13%

0.66%
0.86%-0.20%

2.24%
3.68%-1.44%

ARES Japan Property Index(AJPI） Summary Sheet

AJPI Flash
Preliminary Figure Date
Latest Final Figure Date
Previous Final figure Date

2024/06/30
2023/12/31
2023/09/30

AJPI Support Members
ARES has signed a letter of agreement on AJPI with each AJPI Support Member for the purpose of receiving core funds' performancedata. The current AJPI Support Members are as follows;◆Unlisted Data Contributors（Support Members）
・ESR REIT Management Ltd.
・Ichigo Estate Co., Ltd.
・Ichigo Investment Advisors Co., Ltd.
・Idera Capital Management Ltd.
・ITOCHU REIT Management Co.,Ltd.
・A.P.Asset management Co.,Ltd.
・SRE Asset Management Corporation
・SMBC REIT Management Co., Ltd.
・SG Assetmax Co., Ltd.
・SBI Private REIT Advisors Co., Ltd.
・NTT Urban Development Asset Management Corporation
・FJ Asset Management Co.,Ltd.
・Osaka Gas Urban Development Asset Management Co.,Ltd.
・ORIX Real Estate Investment Advisors Corporation・Kajima Real Estate Investment Advisors Inc.
・Kanden Realty Investment Advisors Co.,Ltd.
・Keihan Asset Management Co., Ltd.
・Kenedix, Inc.
・Kenedix Real Estate Fund Management, Inc.
・Kowa Real Estate Investment Advisors Co., Ltd.
・Goldman Sachs Asset Management Co., Ltd.
・GOLDMAN SACHS JAPAN CO., LTD.
・JR Kyushu Asset Management Co.,Ltd.
・JR West Real Estate Investment Advisors Co.,Ltd.
・SHIMIZU REAL ESTATE ASSET MANAGEMENT CORPORATION
・Sumisho Realty Management Co., Ltd.
・SENKO Asset Management Co.,Ltd.
・Dai-ichi Life Realty Asset Management Co., Ltd.
・Taisei Real Estate Asset Management Co.,Ltd.
・Diamond Realty Management Inc.
・Daiwa House Real Estate Investment Management Co.,Ltd.
・Daiwa Real Estate Asset Management Co. Ltd.
・Chuo-Nittochi Asset Management Co., Ltd.
・DBJ Asset Management Co., Ltd.
・Tokyu Land Capital Management Inc.
・TLC REIT Management Inc.
・Tokio Marine Asset Management Co., Ltd・Tokyo Gas Real Estate Investment Advisors Co., Ltd.
・Tokyo Tatemono Investment Advisors Co., Ltd.
・Nankai REIT Management Co., Ltd.
・Nishimatsu Asset Management Co.,Ltd.
・NISSHIN FUDOUSAN Investment Advisors,Inc.
・NIPPON LIFE REALTY MANAGEMENT Inc.
・Nochu-JAML Investment Advisors Co., Ltd.
・Nomura Real Estate Asset Management Co., Ltd.
・HASEKO Real Estate Investment Management,inc.
・Hulic Real Estate Investment Advisors Co., Ltd.
・Hirogin REIT Management Co., Ltd.
・Hoosiers Capital Management Co., Ltd.
・Marubeni Asset Management Co., Ltd.
・Mizuho Trust & Banking Co., Ltd.
・Mizuho REIT Management Co., Ltd.
・Sumitomo Mitsui Trust Real Estate Investment Management Co., Ltd.
・Mitsui Fudosan Investment Advisors, Inc.
・Mitsui & Co., Realty Management Ltd.
・Mitsubishi HC Capital Realty Advisers Inc.
・Mitsubishi Jisho Investment Advisors, Inc.
・YASUDA REAL ESTATE Asset Management Co.,Ltd.

5 / 7 Page

ARES Japan Property Index(AJPI） Summary Sheet

AJPI Flash
Preliminary Figure Date
Latest Final Figure Date
Previous Final figure Date

2024/06/30
2023/12/31
2023/09/30

・List Asset Management Co., Ltd.
(As of July 22, 2024)

6 / 7 Page

ARES Japan Property Index(AJPI） Summary Sheet

AJPI Flash
Preliminary Figure DateLatest Final Figure Date
Previous Final figure Date

2024/06/30
2023/12/31
2023/09/30

ARES Japan Property Index
ARES Japan Property Index ("AJPI") is the index calculated from the universe of income-producing properties owned by corereal estate funds mainly for institutional investors.
Property index is a weighted-average index calculated by actual NOI data from operating activities and capital appreciation
data based on changes in the external appraisal value.
Conceptual diagram of AJPINote) Capital appreciation = The end of market value - The beginning of market value

AJPI is the performance index calculated from weighted average income returns and capital returns which are provided fromunlisted private funds' data (undisclosed) and listed REITs' data (disclosed).
Inclusion of listed REITs' data
J-REITs, Japanese Real Estate Investment Trusts, can be classified as "plain core fund" and included in the AJFI, as they aredifferent from REITs in other countries with the following three points;
・J-REITs' activities are regulatory restricted to be rental businesses for the long-term investment・J-REITs disclose actual NOI and external appraisal value by property twice a year
・J-REITs' loan to value ratio generally remains low.
AJPI Fact Sheet
・ARES Japan Property Index
Name・Performance index for income-producing properties owned by core real estate funds for institutional investors
OutlineIndex data ・Monthly index (1000 points at December 31, 2001)
・Quarterly and annual returns
・Sub-index by type or area
・Universe profile: number of properties, total assets, average occupancy, and cap rate
・Weighted-average index of income returns (Net Operating Income) and capital appreciation returns
Methodology(changes in appraisal value)
・Income return + Capital Appreciation return = Total return・Conforming the methodology of NCREIF Property Index (NPI) in the United States
Information ・Monthly update
・ARES website: AJPI Databook (Free download spreadsheets)
・Vendors : Bloomberg etc.
・Properties owned by unlisted core funds and all of properties owned by J-REITs. Performance data from unlisted coreUniverse
funds is provided from AJPI Support Members
・ARES hope to cover core investment market more widely,where institutional real estate is traded, and plan to expand the AJPI's universe step by step.
Reference
Characteristics of ARES Real Estate Investment indices(AJFI&AJPI)
https://index.ares.or.jp/en/index-feature/
Examples of the use of AJPI&AJFI
https://index.ares.or.jp/en/index-example/

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