Sekisui House SI Asset Management, LTD.

Sekisui House SI Investment Corporation
Business Results for the 17th Fiscal Period
May 15, 2014

Sekisui House SI Investment Corporation
Business Results for the 17th Fiscal Period from Oct. 1, 2013 to Mar. 31, 2014

8973
1

Contents
Ⅰ. Introduction: Change of Investment Policy

3

Ⅱ. Overview After 17th Fiscal Period Ended March 31, 2014

Ⅵ. Forecasts for the 18th Fiscal Period Ending September
30, 2014 and Current Management Policy
・Forecasts for the 18th Fiscal Period Ending September 30, 2014

30

8・Analysis of Factors of Change in Forecast Cash Distributions for
18th Fiscal Period Compared to Actual Cash Distributions for17th Fiscal Period

319・Current Management Policy

32・Highlights

7

・Summary of Business Results for 17th Fiscal Period
・Analysis of Factors of Change in Actual Cash Distributions
Compared to Initial Forecasts for 17th Fiscal Period

・Residential Properties Planned and Developed by Sekisui House 33

Ⅲ. External Growth Utilizing Diverse Property Acquisition
Routes and Acquisition Methods

・[Reference] Sixth General Meeting of Unitholders

・Trajectory of External Growth After Sponsor Change

11

・Utilization of Diverse Property Acquisition Routes andAcquisition Methods

12・Status of Residential Portfolio

13・Overview of Acquired and Assigned Assets

14

Ⅳ. Portfolio Management Status of the 17th Fiscal Period
Ended March 31, 2014

34

Ⅶ. Appendix
・Balance Sheets

36

・Statements of Income

38

・Statement of Cash Flows / Cash Distributions

39

・Summary of Selected Financial Data

40

・History of the Investment Corporation since Listing

41

・Occupancy Rate and NOI Yields

17・Portfolio Map

42・Residential Properties Occupancy Status by Investment Area

18

・Status of Portfolio

44・Residential Properties Rent Status

19

・List of Properties Owned at End of Period

46

・Examples of Measures to Maintain and Improve Competitiveness and Asset Value of Residences

20

・List of Fiscal Period-End Appraisal Values

50

・Trends in Occupancy and Tenants of Retail Properties

21

・Overview of Interest-Bearing Debt

54

・Changes in Unrealized Gain/Loss, Etc.

22

・Overview of Unitholders as of March 31, 2014

57

・Overview of Asset Management Company

58

・Historical Investment Unit Price

59

Ⅴ. Financing Activities After 17th Fiscal Period Ended
March 31, 2014
・Equity Finance

24・Debt Finance

25

・Major Financial Indices Related to Interest-Bearing Debt

26
2

Prime Maison WASEDA

Ⅰ. Introduction: Change of Investment Policy

プライムメゾン東桜
マスト博多
マスト博多

Under the collaborative structure with Sekisui House, the main sponsor, the Investment
Corporation will transform itself from a “diversified REIT centering on residential
properties” to a “REIT specialized in residential properties.”
The Investment Corporation will submit an agenda concerning partial amendments to its Article of Incorporation
at its Sixth General Meeting of Unitholders scheduled to be held on June 11, 2014 and, upon the approval of thepartial amendment, partial changes to the Asset Management Company’s asset management guidelines, one of
its internal rules, are also scheduled to be made.

Major Planned Changes
Change of the trade name of the Investment Corporation to emphasize the transformation to a REIT
specialized in residential properties
New trade nameSekisui House SI Residential Investment Corporation

Change of investment target to residences only
 Real estate-related assets that are mainly used (Note) as residence shall be identified as the investment target of theInvestment Corporation and retail property, etc., which have been identified as supplementary investment target, shall be
removed from the investment target.
The Investment Corporation will make efforts to stably manage retail properties owned as of the partial amendment to
the Article of Incorporation with the cooperation of Sekisui House while in principle considering their sale having regard to
the cash distribution level.
 The category of “management-type residences” will be eliminated and “residences” will be clarified to include only student
dorms, company housing and serviced housing for the elderly.
Note: “Mainly used” means that a majority of the total exclusive area of the relevant real estate-related asset is allocated for a specific use.

Promote the establishment of a portfolio comprised of high-quality residential properties
with greater strength and appropriateness from a medium- to long-term perspective
4

Expansion of Investment Area Outside Greater Tokyo “Greater Tokyo/Major Urban Areas” will continue to be the focused investment areas while a new category of “Major Cities
Nationwide” will be established in the investment area categories outside Greater Tokyo.

【Regional Categories for Investment Real Estate】
Investment area category

Specific area
① Tokyo

Major Cities
Nationwide

Greater Tokyo

Greater Tokyo / Major Urban Areas(Focused investment area): 23 wards, Musashino-shi, Mitaka-shi,
Koganei-shi

Allocation ratio(based on acquisition price) (Note 3)
About 70%

② Kanagawa : Yokohama-shi, Kawasaki-shi

Greater Tokyo / Other Urban Areas① Tokyo areas (except islands) and Kanagawa otherthan the above② Chiba, Saitama

Together with Greater Tokyo / Major
Urban Areas
About 80%

Major Regional Cities① Sapporo-shi, Sendai-shi, Nagoya-shi, Kyoto-shi,
Osaka-shi, Kobe-shi, Hiroshima-shi, Fukuoka-shi②Additional areas within commuting distance (Note 1)

About 20%

Other Major Cities Nationwide

Government designated cities, etc. other than the above

Up to roughly 10% for
Other Major Cities Nationwide(Note 2)

Notes: 1. “Areas within commuting distance” represent the peripheral areas from which it generally requires around 30 minutes to commute to the central parts of Sapporo-shi, Sendai-shi, Nagoya-shi, Kyoto-shi,
Osaka-shi, Kobe-shi, Hiroshima-shi and Fukuoka-shi.
2. “Government designated cities, etc. other than the above” represent cities in areas other than Greater Tokyo and that fall under the category of either government designated cities, core cities, special
ordinance cities or prefectural capitals in areas other than Major Urban Areas.
3. “About.” in the allocation ratio means ±10%.
4. Retail properties owned as of the date of this document have been excluded from the calculation of the above allocation ratio.

Maximally utilize the nationwide network of the Sekisui House Group and expand
opportunities for the acquisition of prime property information
5

Primer Maison HATCHOBORI

Ⅱ. Overview After 17th Fiscal Period
Ended March 31, 2014

プライムメゾン東桜
マスト博多
マスト博多

Highlights
Management status of the 17th fiscal period ended March 31, 2014
Initial forecast cash distribution
per unit

Amended forecast cash distribution
per unit¥10,700¥11,060(Announced November 14, 2013)(Announced April 3, 2014)

Actual cash distribution per unit

¥11,062

Increase of ¥362 from initial forecast due torecording of gain on sale from the transfer
of Esty Maison SENDAGAYA, etc.

Implemented public offering for third consecutive year in April 2014
 Procured ¥10.2 billion total from the primary offering; Maximum of ¥10.7 billion expected to be procured together with third-party allotment
 Acquired 4 residential properties with above funds, etc.; Asset size based on acquisition price increased to ¥171.0 billion

Implemented 5-for-1 split of investment units in April 2014
 Investment units split on a 5-for-1 basis given the start of Nippon Individual Savings Account (NISA) in January 2014
 Investment unit price significantly reduced due to the split (Reference: ¥96,500 per investment unit as of end of April 2014)

Forecast cash distribution for the 18th fiscal period ending September 30, 2014
Forecast cash distribution per unit

¥2,120(¥10,600 per unit in price before 5-for-1 split)

Aim to achieve the strategic target of the Investment Corporation currently underway;

Achieve “asset size of ¥200 billion while giving
consideration to the cash distribution level”
7Summary of Business Results for 17th Fiscal Period
Comparison with Forecasts[Reference] Revised
forecast for fiscal period
ended Mar. 31, 2014
(announced Apr. 3, 2014)

Initial forecast for fiscal
period ended Mar. 31, 2014
(announced Nov. 14, 2013)

Fiscal period
ended Mar. 31, 2014(182 days) (actual)

Operating revenue¥4,946 million¥4,886 million¥4,952 million¥66 million

1.4%

Operating income¥2,242 million¥2,188 million¥2,242 million¥54 million

2.5%

Difference
between actual results andinitial forecasts◇Factors for differences between actual results andinitial forecasts for the fiscal period ended Mar. 31,
2014

・ Operating income
Operating revenue:::+¥14 million

Increase in expenses related to lease business:+¥12 million

Increase in other business expenses:+¥0 million

Increase in rent revenue
Increase in other lease business revenue
Gain on sales of real estate properties

Ordinary income¥1,767 million¥1,710 million¥1,767 million¥57 million

3.4%

Net income¥1,765 million¥1,707 million¥1,765 million¥57 million

3.4%¥11,060¥10,700¥11,062

¥362

3.4%

Cash distributions
per unit

Comparison with Previous Fiscal Period
Fiscal period ended Sep. 30, 2013(183 days) (actual)

Fiscal period ended Mar. 31, 2014(182 days) (actual)

Operating revenue¥4,688 million¥4,952 million¥264 million

5.6%

Operating income¥2,179 million¥2,242 million¥62 million

2.9%

Ordinary income¥1,684 million¥1,767 million¥83 million

5.0%

Net income¥1,681 million¥1,765 million¥10,537¥11,062+¥35 million

Operating expense

・ Ordinary income
Increase in non-operating revenue:+¥0 million

Decrease in non-operating expenses:-¥2 million

Change¥83 million◇Factors for period-on-period changes to actual

results for the fiscal period ended Mar. 31, 2014

・ Operating income
Operating revenue
Increase in rent revenue

5.0%

Increase in other lease business revenue

5.0%

Gain on sales of real estate properties

Decrease in silent partnership distribution

Cash distributions
per unit+¥17 million¥525: +¥210 million: +¥23 million-¥4 million:: +¥35 million

Operating expense
Increase in expenses related to lease businessTotal assets¥148,871 million¥156,878 million¥8,006 million

Interest-bearing debt

¥75,975 million¥83,768 million¥7,793 million

Net assets¥69,976 million¥70,059 million¥83 million

Absence of loss on sales of real estate properties
Increase in other business expenses

Period-end
investment unit price¥101,600(¥508,000)¥102,600(¥513,000)

Number of investment
units issued andoutstanding

798,025 units(159,605 units)

798,025 units(159,605 units)

Period-end market
value¥81,079 million¥81,877 million

Cash distributions¥1,681 million¥1,765 million: +¥167 million-¥8 million:: +¥43 million

・ Ordinary income
Increase in non-operating revenue:+¥4 million

Decrease in non-operating expenses:-¥16 million

Notes: 1. Amounts less than the indicated unit are rounded down.
2. Percentage figures are rounded to the nearest first decimal place.
3. Investment units are traded at ex-dividend unit price from March 27, 2014 due to the five-for-one split of investment units executed on
April 1, 2014. Taking into consideration the impact of the split, “Period-end investment unit price” is the fifth of the actual figure
indicated in parentheses and the “Number of investment units issued and outstanding” is five times the actual figure indicated inparentheses.

8Analysis of Factors of Change in Actual Cash Distributions Compared to Initial
Forecasts for 17th Fiscal Period
Cash distributions ended up higher than initial forecasts due to the recording of gain on sale from the transfer of Esty Maison
SENDAGAYA, etc.
Impact on net
incomeFactors of change①

Gain on sale from transfer of Esty Maison SENDAGAYA②

Impact on cash
distributions+¥35 million+¥221

Decrease in lease business profit from transfer of Esty Maison SENDAGAYA (one month’s worth)-¥2 million

-¥13

③

Increase in lease business profit from additional acquisition of 3 residential properties after January
2014+¥6 million

+¥39

④

Increase in lease business profit from initial forecast assumption properties+¥15 million

+¥96

⑤

Increase of general management fees, decrease of non-operating expenses, etc.

+¥3 million

+¥19

(yen)
11,200+¥96

11,10011,00010,90010,800Initial forecast cash
distribution per unit forthe 17th fiscal period
ended March 31, 2014

+¥221
①

-¥13

+¥39

②

③

+¥19

Actual cash distribution perunit for the 17th fiscal period
ended March 31, 2014⑤④

10,70010,600¥11,062

10,50010,400

Increase of ¥362 yen (3.4%) from initial forecast

10,300
10,200¥10,700

10,10010,000(Announced November 14, 2013)(Announced May 14, 2014)9

Prime Maison JINBOCHO

Ⅲ. External Growth Utilizing Diverse Property
Acquisition Routes and Acquisition Methods

プライムメゾン東桜
マスト博多
マスト博多

Trajectory of External Growth After Sponsor Change
Acquired 48 residential properties (total acquisition price of ¥84 billion) after sponsor change
Promotion of further enhancement of the portfolio’s stability
through steady expansion of the asset size
Properties acquired after sponsor change (based on acquisition price)
Properties acquired before sponsor change (based on acquisition price)¥128.7 billion(77 properties)¥171.0 billion(99 properties)¥151.7 billion(95 properties)¥110.2 billion(66 properties)¥99.9 billion(53 properties)～～

Fiscal period
ended Mar. 31, 2010(End of 9th period)¥141.4 billion(89 properties)

Asset size grew byapprox. 1.7 times

Fiscal period
ended Sep. 30, 2012(End of 14th period)

Fiscal period
ended Mar. 31, 2013(End of 15th period)

Fiscal period
ended Sep. 30, 2013(End of 16th period)

Fiscal period
ended Mar. 31, 2014(End of 17th period)(as of the date of this document)

17th fiscal period

April and May, 2014

・Acquired 37 residential properties(total acquisition price of ¥53.8 billion)・Acquired 7 residential properties(total acquisition price of ¥10.8 billion)

・Implemented public offering for third consecutive year

・2-time partial sales of HAMAMATSU Plaza

・Sale of Esty Maison SENDAGAYA

From sponsor change to 16th fiscal period・Acquired 4 residential properties(total acquisition price of ¥19.3 billion)

11

Utilization of Diverse Property Acquisition Routes and Acquisition Methods
1) Sekisui House Group’s Pipeline Acquired 4 residential properties from Sekisui House on October
1, 2013 using proceeds from the sale of Hamamatsu Plaza East ItoYokado Building, etc.

 Acquired a residential property located in Greater Tokyo/Major
Urban Areas from Sekiwa Real Estate for the first time on January
21, 2014 using cash on hand

Total acquisition priceTotal appraisal value

Appraised NOI yield

Acquisition priceAppraisal value

Appraised NOI yield¥6,200 million¥6,660 million

5.3%¥480 million¥497 million

5.5% Acquired 2 residential properties from Sekisui House and Sekiwa Real Estate Chubu on May 1, 2014 together with properties acquired
from the bridge fund indicated in 3) below by the public offering in April the same year
Total acquisition priceTotal appraisal value

Appraised NOI yield¥5,515 million¥5,890 million

6.3%

January 31, 2014 February 28, 2014

March 28, 2014

January 21, 2014

October 1, 2013

May 1, 2014

2) Asset Management Company’s Proprietary Route

3) Bridge Fund

 Acquired 2 residential properties on January 31 and March 28,
2014 using the Asset Management Company’s Proprietary route Acquired 2 residential properties on May 1, 2014 through theexercise of preferential negotiation rights obtained from a bridge fundestablished with the backdrop of the creditworthiness of Sekisui House

Total acquisition priceTotal appraisal value

Appraised NOI yield¥4,168 million¥4,370 million

5.9%

 Sold a residential property on February 28, 2014, recording ¥35
million of gain on sale
Sold priceAppraisal value

Acquisition price¥600 million¥516 million¥576 million

Total acquisition priceTotal appraisal value

Appraised NOI yield¥13,840 million¥14,980 million¥5.4%

Acquired 11 residential properties
for a total acquisition price of ¥30.2 billion
since the 17th FP to the date of this document

Note:“(Total) appraisal value” above are the (total) appraisal values by real estate appraisers as of the acquisition or sale of the property. For the period-end estimated values of assets acquired during the 17th fiscal period ended March 31, 2014 please see
pages 50 to 53. Also, “(average) appraised NOI yield” of acquired assets are calculated by dividing the (total) appraised NOI yields based on appraisal reports by real estate appraisers as of the acquisition of the property by its (total ) acquisition price,
and are rounded to the nearest first decimal place. Please see pages 14 and 15 for details of acquired assets and assigned assets.

12

Status of Residential Portfolio
Promotion of qualitative improvement of the portfolio through the acquisition of high-quality residential properties
Diversification statusby property age(based on acquisition price)

Diversification status by area(based on acquisition price)

10 years or more
Major Regional Cities

24.4%
Fiscal period
ended Sep. 30,
2013

Greater Tokyo
Major Regional Cities

71.4%

Greater
Tokyo

75.6%

(End of 16th period)

Of these,Tokyo’s 23 wards

63.8%

10.3%

Diversification status
by walking distance to station(based on acquisition price)

Less than 5 years

More than 10 minutes

12.7%

10.3% Within 3 minutes
More than 5 minutes
30.6%
to within 10 minutes Within 10
5 years to
Minute walk
31.0%
less than
89.7%
10 yearsMore than 3 minutes
77.0%
to within 5 minutes

Averageproperty age

7.7 years

Greater Tokyo/Other Urban Areas

4.3%

Major Regional Cities

25.6%

Greater Tokyo
Major Regional Cities

Greater
Tokyo

70.5%

74.4%

(End of 17th period)

Of these,Tokyo’s 23 wards

63.4%

9.5%

100m2 or more
0.4%

22.6%
30m2 to lessthan 50 m2

Average area Less than 30m
49.6%
per unit

2

37.9m227.4%

50 m2 toless than
100m2

Less than 5 years More than 10 minutes

16.3%

9.6%

Within 3 minutes
More than 5 minutes Within 10 31.1%
to within 10 minutes Minute walk

Averageproperty age

7.4 years 5 years toless than
10 years

Greater Tokyo/Other Urban Areas

74.1%

3.9%

32.7%

90.4%
More than 3 minutes
to within 5 minutes

Major Regional Cities

26.0%

Less than 5 years More than 10 minutes

Greater Tokyo
Major Regional Cities

10.8% 14.3%

70.6%

Averageproperty age

Greater
Tokyo

74.0%

Of these,Tokyo’s 23 wards

Greater Tokyo/Other Urban Areas

64.4%

7.5 years

Within 3 minutes
More than 5 minutes
31.8%
to within 10 minutes Within 10
Minute walk
28.6%
5 years to
90.5%
less thanMore than 3 minutes
10 years
to within 5 minutes
74.9%

Less than 30m2

Average area
per unit

49.5%

38.0m230m2 to lessthan 50 m2

27.9%
50 m2 toless than
100m2

100m2 or more

0.7%

23.1%

Less than 30m2

Average area
per unit
30m2 to lessthan 50 m2

48.9%

38.4m2

27.3%

30.1%

3.4%
Center of Greater Tokyo

9.5%

100m2 or more
0.7%

21.9%

26.6%
10 years or more

As of the date ofthis document

50 m2 toless than
100m2

28.0%
10 years or more

Fiscal period
ended Mar. 31,
2014

Diversification status by floor area(based on rentable residential units)

Primarily new properties

Primarily properties near stations

Primarily single and compact types

Note: The ratios of the above diversification statuses are rounded to the nearest first decimal place. Accordingly, the ratios may not add up to 100% respectively. Also, “average property age” uses the day of this document as the reference date and are
calculated by seeking the weighted average of the building age of each property with the investment ratio calculated based on the acquisition price. “Average area per unit” is calculated based on the total leasable area of owned properties and the total
number of rentable units as of each period and are rounded down to the nearest first decimal place.

13

Overview of Acquired and Assigned Assets (1)Residence-87

Prime Maison WASEDA

Greater Tokyo/Major
Urban Areas

Property age
1.5 years

Residence-88

Acquiredin the 17th Fiscal Period

Prime Maison HATCHOBORIGreater Tokyo/Major
Urban Areas

Property age
1.4 years

Acquiredin the 17th Fiscal Period

Residence-89

Prime Maison JINBOCHO

Greater Tokyo/Major
Urban Areas

Acquiredin the 17th Fiscal Period

Property age
1.2 years

Acquisition price

Acquisition price

Acquisition price¥1,280 million¥1,160 million¥1,640 million

Appraisal value

Appraisal value

Appraisal value¥1,360 million¥1,210 million¥1,670 million

Appraised NOI Yield

Appraised NOI Yield

Appraised NOI Yield

5.3%

5.2%

5.1%

Location

Waseda Tsurumaki-cho, Shinjuku-ku, Tokyo

Location

Hatchobori, Chuo-ku, Tokyo

Location

Kandajinbo-cho, Chiyoda-ku, Tokyo

AccessApprox. 8-minute walk from Waseda Stationon the Tokyo Metro Tozai Line

AccessApprox. 1-minute walk from Hatchobori
Station on the Tokyo Metro Hibiya Line

AccessApprox. 4-minute walk from Jinbocho Stationon the Toei Subway Shinjuku and Mita Linesetc.

Acquisition date

October 1, 2013

Acquisition date

October 1, 2013

Acquisition date

October 1, 2013

Acquisition route

Sekisui House, Ltd.

Acquisition route

Sekisui House, Ltd.

Acquisition route

Sekisui House, Ltd.

Residence-90

Prime Maison GOTENYAMA EAST

Residence-91 MAST LIFE AKIHABARA

Residence-92

Esty Maison AOI *Greater Tokyo/Major
Urban Areas

Property age
3.3 years

Acquiredin the 17th Fiscal Period

Greater Tokyo/Major
Urban Areas

Property age
7.6 years

Acquiredin the 17th Fiscal Period

Major Regional Cities

Property age
6.6 years

Acquiredin the 17th Fiscal Period

Acquisition price

Acquisition price

Acquisition price¥2,120 million¥480 million¥2,160 million

Appraisal value

Appraisal value

Appraisal value¥2,420 million¥497 million¥2,230 million

Appraised NOI Yield

Appraised NOI Yield

Appraised NOI Yield

5.5%

5.5%

5.9%

Location

Kitashinagawa, Shinagawa-ku, Tokyo

Location

Kanda Sakumagashi, Chiyoda-ku, Tokyo

Location

Aoi, Higashi-ku, Nagoya-shi, Aichi

AccessApprox. 10-minute walk from Kitashinagawa
Station on the Keihin Kyuko Main Line

AccessApprox. 3-minute walk from Akihabara
Station on the Tokyo Metro Hibiya Line

AccessApprox. 3-minute walk from Shinsakae-machi
Station on the Nagoya Municipal Subway
Higashiyama Line

Acquisition date

October 1, 2013

Acquisition date

January 21, 2014

Acquisition date

January 31, 2014

Acquisition route

Sekisui House, Ltd.

Acquisition route

Sekiwa Real Estate, Ltd.

Acquisition route

Asset Management Company’s Proprietary
Route

Note: “Property age” is based on the date of this document as the reference date. The numbers are rounded down to the nearest first decimal place. The same shall apply hereafter.

14

Overview of Acquired and Assigned Assets (2)Residence-93

Esty Maison YAKUIN *Major Regional Cities

Location
AccessProperty age
8.2 years

Residence-94

Acquiredin the 17th Fiscal Period

Esty Maison KINSHICHO II *Greater Tokyo/Major
Urban Areas

Property age
6.3 years

Acquiredin the 18th Fiscal Period

Residence-95

Esty Maison OJIMA*Greater Tokyo/Major
Urban Areas

Property age
6.6 years

Acquisition price

Acquisition price

Acquisition price¥2,008 million¥6,720 million¥7,120 million

Appraisal value

Appraisal value

Appraisal value¥2,140 million¥7,160 million¥7,820million

Appraised NOI Yield

Appraised NOI Yield

Appraised NOI Yield

5.9%

5.4%

5.5%

Hirao, Chuo-ku, Fukuoka-shi, Fukuoka
Approx. 6 minute walk from Yakuin Station on
the Nishitetsu Tenjin Omuta Line etc.

Location

Kotobashi, Sumida-ku, Tokyo

Location

Ojima, Koto-ku, Tokyo

AccessApprox. 5-minute walk from Kinshicho Stationon the JR Sobu Line and the Tokyo Metro
Hanzomon Line

AccessApprox. 2-minute walk from Ojima Station on
the Toei Subway Shinjuku Line

Acquisition date

March 28, 2014

Acquisition date

May 1, 2014

Acquisition date

May 1, 2014

Acquisition routeInvestment Management Company’s own
route

Acquisition route

Bridge Fund

Acquisition route

Bridge Fund

Residence-96

Prime Maison FUJIMIDAI

Residence-97

Major Regional Cities

Acquiredin the 18th Fiscal Period

Property age
7.0 years

Acquiredin the 18th Fiscal Period

Esty Maison TSURUMAI*

Major Regional Cities

Property age
14.4 years

Acquiredin the 18th Fiscal Period

Residence-7

Esty Maison SENDAGAYAGreater Tokyo/Major
Urban Areas

Property age
9.7 years

Assignedin the 17th Fiscal Period

Acquisition price

Acquisition price

Assignment price¥1,755 million¥3,760 million¥600 million

Appraisal value

Appraisal value

Appraisal value¥1,850 million¥4,040 million¥516 million

Appraised NOI Yield

Appraised NOI Yield

Acquisition price

6.2%

6.4%

¥576 million

Location

Fujimidai, Chigusa-ku, Nagoya-shi, Aichi

AccessApprox. 11-minute walk from Jiyugaoka
Station on the Nagoya City Subway Meijo
Line

Location

Chiyoda, Naka-ku, Nagoya-shi, Aichi

Location

Daikyocho, Shinjuku-ku, Tokyo

AccessApprox. 5-minute walk from Tsurumai Stationon the Nagoya City Subway Tsurumai Line

AccessApprox. 5-minute walk from Sendagaya
Station on the JR Sobu Line

Acquisition date

May 1, 2014

Acquisition date

May 1, 2014

Acquisition route

Sekisui House, Ltd.

Acquisition route

Sekiwa Real Estate Chubu, Ltd.

Assignment date
Buyer

February 28, 2014
Domestic general business company

Note: It is planned to be changed to “Esty Maison” following a certain period of notifications to the residents. The same shall apply hereafter.

15

MAST LIFE AKIHABARA

Ⅳ. Portfolio Management Status of the 17th Fiscal Period
Ended March 31, 2014

プライムメゾン東桜
マスト博多
マスト博多

Occupancy Rate and NOI Yields
Monthly Occupancy Rates Chart
Residential
100%

98.3%

Retail

Total

97.7%

97.7%

97.5%

97.1%

95%

90%

85%

80%

75%
Mar.
2012

Apr.

May

End of 13th
Fiscal Period

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

End of 14th
Fiscal Period

Jan.
2013

Feb.

Mar.

Apr.

May

Jun.

Jul.

End of 15th
Fiscal Period

Sep.

Oct.

Nov.

Dec.

Jan.
2014

End of 16th
Fiscal Period

Occupancy Rates

Feb.

Mar.

End of 17th
Fiscal Period

NOI Yields

Fiscal period ended March 31, 2014 (17th fiscal period)
As of end of the fiscal period

Aug.

(Oct. 1, 2013 through Mar. 31, 2014)

Fiscal period ended March 31, 2014
(17th fiscal period)

Average for the 17th fiscal period

Residential

96.6%

95.7%

5.1%

Retail

99.8%

99.8%

5.1%

Total

97.5%

96.8%

5.1%

Notes: 1. “Occupancy Rates” in the above chart indicate the rate of total leased space to the total leasable space for the properties in each category held by the Investment Corporation as of the end of each month from March 2012 to March 2014.
2. The average occupancy rate for the 17th fiscal period ended March 31, 2014 in the above table indicates the average of occupancy rates as of the end of each month during the fiscal period ended March 2014.
3. The NOI yields in the above table are obtained by dividing the annualized leasing NOI for the fiscal period ended March 31, 2014 by the total acquisition price.
4. Percentage figures are rounded to the nearest first decimal place.

17

Residential Properties Occupancy Status by Investment Area
Greater Tokyo / Major Urban Areas

Greater Tokyo / Other Urban Areas

Major Regional Cities

Family type units of 80m2 or more were partiallysluggish but other unit types were stable

Cancellations temporarily increased towards
the end of the year but the occupancy rate isrebounding due to early responses

Demand for partial low-occupancy properties
recovered amidst a high and stable
occupancy rate

Average occupancy rate during the 17th FP: 95.4%

Average occupancy rate during the 17th FP: 93.3%

Average occupancy rate during the 17th FP: 96.5%

Area data

Number of properties:

57 properties

Number of properties:

4 properties

Total leasable area:

126,266.83m2

Total leasable area:

13,985.89m2

Number of leasable
units

:

Area data

Number of leasable
units

3,729 units:

Number of properties:

26 properties

Total leasable area:

94,363.75m2

Number of leasable
units

:

2,059 units

Area data

319 units

The average occupancy rate for the 17th fiscal period increased by 0.5 points compared to the previous period to the upper
95% level as a result of management focused on occupancy

Change in Occupancy Rates by Investment Area Classification
Greater Tokyo/Major Urban Areas

100%

97.1%

98.2%

97.7%

Greater Tokyo / Other Urban Areas
97.4%

96.4%

Major Regional Cities
97.5%

96.8%

96.8%
96.6%

96.1%

96.4%

96.8%

Residences overall

96.6%

96.7%

95%

95.1%

95.4% 18

95.3%

95.3%

94.0%
93.8%
90%

Average occupancy rateduring the 14th FP
85%
End of Mar. 2012(End of 13th FP): 95.6%End of Jun.

Average occupancy rateduring the 15th FP

End of Sep. 2012(End of 14th FP)

End of Dec.

: 96.0%

Average occupancy rateduring the 16th FP

End of Mar. 2013(End of 15th FP)

End of Jun.

: 95.2%Average occupancy rate:during the 17th FP

End of Sep. 2013(End of 16th FP)

End of Dec.

95.7%
End of Mar. 2014(End of 17th FP)

Note: “Change in occupancy rates by investment area classification” shows the month-end occupancy rates with classification by investment area based on residential properties owned as of the end of each month and are rounded to the nearest fist decimal
place. Also, the average occupancy rates during the periods are the average occupancy rates as of the end of each month during each period. Furthermore, “area data” shows figures for properties owned as of the end of the 17th FP (ended March 2014).

18

Residential Properties Rent Status
Rent Trends in New Contracts
13th FP

14th FP

Rent Trends in Contract Renewals

15th FP

16th FP

13th FP

14th FP

15th FP

16th FP

17th FP

704

616

657

641

923

-

¥7
thousand
(1)

-

-

-

-¥59
thousand(8)-¥34
thousand(5)-¥40
thousand
(9)

-

-¥31
thousand(19)

Change in rent (net)-¥59
Thousand-¥26
thousand-¥40
thousand--¥31
ThousandRate of change in rent
against previous rent

-0.1%

-0.0%

-0.1%

0%

-0.0%

17th FP

No. of new contract

488

499

547

588

704

No. of renew contract

Total increase
in rent(number of cases)¥508
thousand
(143)

¥811
thousand
(194)

¥411
thousand
(138)

¥678
thousand
(193)

¥736
thousand(190)

Total increase
in rent

Total decrease
in rent(number of cases)-¥1,416
thousand(200)-¥1,101
thousand(152)-¥1,514thousand(223)-¥1,337
thousand(186)-¥2,265
thousand
(302)

-¥908

-¥290

-¥1,103-¥659-¥1,528

thousandthousandthousandthousandthousand

-1.7%

-0.5%

-1.7%

-0.9%

-1.8%

Change in rent (net)Rate of change in rent
against previous rent

(number of cases)

Total decrease
in rent(number of cases)

While the range of decrease of rent widened, progress was made in leasing of
long-term vacant residential units
Ratio of decrease in rent

Ratio of no rent change

There were no change in the majority of contract renewals except somerenewals with decreased rent for some corporate contracts

Ratio of increase in rent

Ratio of decrease in rent

100%

75%

41.0％

30.5％

40.8％

30.7％

50%

29.7％
25%

29.3％

42.9％

Ratio of increase in rent

1.4％

2.1%

75%

35.5％

50%

34.0％
38.9％

0.8％

1.1％

31.6％

30.1％

98.9％

99.0％

98.6％

100.0％

97.9％

25%

25.2％

32.8％

27.0％

0.2％
0%

0%
13th fiscal period
Replacement
rate

Ratio of no rent change

100%

13.4%

14th fiscal period

12.8%

15th fiscal period

12.6%

16th fiscal period

11.4%

17th fiscal period
Renewal
rate

12.8%

13th fiscal period

14th fiscal period

15th fiscal period

16th fiscal period

17th fiscal period

79.0%

82.4%

81.6%

82.1%

83.2%

Note: The “rate of change in rent against previous rent” is the ratio of the total change in rent for each period for new or renewed contracts against the total of previous rent. The “renewal rate” is the ratio of residential units at which contracts wererenewed among residential units with contracts maturing during each period. Also, the “replacement rate” is the total ratio of the number of new contracts in residential units the Investment Corporation owns as of the end of each month of eachperiod against the number of total rentable residential units. Both of these ratios are rounded to the nearest first decimal place.

Trend in Unit Rent per Tsubo for Occupied Space■ Calculated based on residential properties owned as of the end of the 17th FP that have been owned since the end of the 16th FP. ■ Calculated based on residential properties owned as of the end of the 17th FP.
End of fiscal period
ended September 2013(end of 16th FP)¥10,910 per tsubo-0.09%End of fiscal period
ended March 2014(end of 17th FP)¥10,900 per tsubo(down ¥10 from the end of theprevious fiscal FP)¥10,935 per tsubo

Note: Unit rent per tsubo for occupied space above does not include shops and offices within residential properties as well as residenti al properties that have master lease type and rent guarantee type lease agreements concluded with master lease
companies for its calculation.

19

Examples of Measures to Maintain and Improve Competitiveness and Asset
Value of Residences
Consider and implement value-adding work, etc. primarily for somewhat aged properties in order to maintain and increase
competitiveness and asset value

Increased Value of Esty Maison SHIROKANEDAI
Implemented value-adding work at the property which was completed about 10 years ago● Content of construction: Renovation of inside and outside of entrance and elevators, etc.
● Construction period: February 2014

Location

Osaki, Shinagawa-ku, Tokyo

Structure /FloorsRC
7F / B1F

Completed

September 16, 2003

Acquisition
date

March 1, 2013

Acquisition
price¥1,900 million

Period-end
occupancy rate

● Construction cost: ¥9 million (all capital expenditure)＜before＞＜before＞

92.4%＜after＞＜after＞

Large-scale Renovation of Esty Maison AZABUNAGASAKA
Location
Structure / Floors

Ropppongi, Minato-ku, Tokyo
SRC / RC
15F / B1F

Completed

January 16, 2004

Acquisition dateAugust 2, 2005

Acquisition price¥1,730 million

Period-end
occupancy rate

98.7%

Implemented large-scale renovation work at the property which wascompleted about 10 years ago● Content of construction: Renovation of exterior walls, waterproofing and paintwork of common areas, etc. and other works● Construction period: November 2013 to March 2014
● Construction cost: ¥53 million (of this, ¥44 million capital expenditure)

20Trends in Occupancy and Tenants of Retail Properties
Occupancy Status of Retail Properties
As a result of the progress in leasing vacant spaces of b-toss IKEBUKURO, the remaining vacant sections became one.
We are focusing on early leasing to bring the entire retail portfolio to full occupancy as soon as possible.
Contract and renewal status of the 17th fiscal period ended
March 31, 2014

Occupancy Status in the 17th FP ended March 2014
Retail properties’ Name

End of 16th FP End of 17th FP Period average● Concluded a new agreement on establishment of land leasehold rights
for business purposes with Kohnan Shoji Co. Ltd. whose contract matured
on January 28, 2014

HAMAMATSU Plaza

100%

100%

100%

b-town JINGUMAEⅡ

100%

100%

100%

Property name

RINKU HAGURAZAKI PlazaRINKU HAGURAZAKI Plaza

100%

100%

100%

Tenant name

Kohnan Shoji Co., Ltd

Contract expiration date

January 31, 2029 (15 years)

Leased floor area

27,815.03m2

b-town MINAMIAOYAMA

100%

100%

98.2%

KOJIMA NEW KAMIFUKUOKA

100%

100%

100%

b-toss IKEBUKURO

77.5%

88.8%

86.9%

Joy Square Yugawara

100%

100%

100%

Bell Plaza Shopping Center

100%

100%

100%

Retail properties total

99.6%

99.8%

99.8%

● Contract with Kojima Co., Ltd. which matured on March 8, 2014 wasautomatically renewed in accordance with the original contract
Property name

KOJIMA NEW KAMIFUKUOKA

Tenant name

Kojima Co., Ltd.

Contract expiration date

March 8, 2016 (2 years)

Leased floor area

3,413.40m2

Latest Issues on Tenants at Retail Properties and Response Policies Going Forward
Name

RINKU HAGURAZAKI Plaza(Underlying Land)(Kojima New Rinku Hagurazaki Store)

b-toss Ikebukuro(Vacant section of 2nd floor)

Current status● Receive notice of the scheduled closure on July 27, 2014 of Kojima NEW
Rinku Hagurazaki Store operated by Kojima Co., Ltd., the building’s owner● Alongside the closure, Kojima consented based on the agreement onestablishment of land leasehold rights for business purposes to seek a lessee
to occupy the building● Due to delivery with skeleton, contract has not been concluded due to thesignificant concern regarding initial costs for facilities, etc. to be borne bypotential tenant

Response policy going forward
While the contract will be continued regardless ofthe notice (contract maturing on July 4, 2022),
negotiations are underway with the company
regarding a change of rental scheme and othermatters
Consider partial payment of capital investment
under continued collaboration with the PM company
and focus on early leasing through implementing of
agile strategies to seek tenant

21Changes in Unrealized Gain / Loss, Etc.
Entire Portfolio(million yen)
10,000(%)
10.0

The entire portfolio’s unrealized loss was resolved in the 17th FP ended March 31, 2014, making thetransition to unrealized gain (for residences only, transition to unrealized gain was made in the 16th FP
ended September 30, 2013)5.0- ¥7,455 million- ¥6,031 million- ¥4,211 million

0.0

Unrealized gain
+ ¥1,488 million
Unrealized gain / loss ratio+ 1.0%

5,000- ¥2,413 million
0

-1.7%
-3.4%

-5.6%

-5.0

-5,000
Unrealized gain / loss ratio (left axis)-7.6%

Unrealized gain / loss (right axis)-10.0-10,000
End of 13th FP(Mar. 31, 2012)

End of 14th FP(Sep. 30, 2012)

End of 15th FP(Mar. 31, 2013)

End of 16th FP(Sep. 30, 2013)

End of 17th FP(Mar. 31, 2014)

Appraisal value¥90,771 million¥101,080 million¥121,380 million¥136,094 million¥149,737 million

Period-end book value¥98,226 million¥107,112 million¥125,592 million¥138,507 million¥148,249 million

RetailResidential

Status by Asset Class
End of 16th FP

End of 17th FP

Appraisal value¥121,918 million¥134,874 million

Book value¥121,242 million¥131,013 million

Unrealized gain
/ loss+¥675 million+¥3,860 million

Unrealized gain
/ loss ratio

0.6%

2.9%

Appraisal value¥14,176 million¥14,863 million

Book value¥17,264 million¥17,235 million

Unrealized gain
/ loss-¥3,088 million-¥2,372 million

Unrealized gain
/ loss ratio-17.9%-13.8%

Major factors in the increase or improvement in unrealized gain / loss ratio
Unrealized gain / loss ratio increased 2.3 points● Appraisal values, etc. increased at 70 out of 80 properties due to decrease of cap rate, etc.
(Increase at 70 properties, maintained at 9 properties and decreased at 1 property)● Acquired new properties at price discounted from appraisal value during the 17th FP

Unrealized gain / loss ratio improved 4.1 points● Appraisal values, etc. increased at 5 out of 8 properties due to decrease of cap rate, etc.
(Increase at 5 properties, maintained at 1 property and decreased at 2 properties)● In particular, significant increase of appraisal value, etc. of RINKU HAGURAZAKI Plaza due to recontracting with core tenantNote: Period-end unrealized gain / loss ratio = Period-end unrealized gain / loss ÷Period-end book value Period-end unrealized gain / loss = Period-end estimated value – Period-end book value

22

Esty Maison AOIⅤ. Financing Activities After 17th Fiscal Period
Ended March 31, 2014

プライムメゾン東桜
マスト博多
マスト博多

Equity Finance
LTV Control

Overview of Public Offering
Issuance Resolution Date April 3, 2014 (Thursday)

End of 17th FP
ended March 31, 2014

Price Determination Date

April 14, 2014 (Monday)

Number of Newly Issued
Investment Units

Primary offering portion: 111,600 units

Offer Price per Unit

¥95,062 (discount rate: 2.5%)

Issue Amount per Unit

¥91,844 (underwriting fee: 3.3%)

Total Issue AmountPrimary offering portion: ¥10,249 million(Maximum of 117,215 units including third-party allotment portion)

Listing Date of Newly
Issued Investment Units

53.4%

LTV

52.3% (estimate)(Maximum of ¥10,765 million including third-party allotment portion)

For Primary offering: April 21, 2014 (Monday)
Payment Date

LTV

After public offering in 18th FP
ending September 30, 2014

Third-party allotment
portion: May 22, 2014 (Thursday) (planned)
For Primary offering: April 22, 2014 (Tuesday)
Third-party allotment
portion: May 26, 2014 (Monday) (planned)

Capacity to acquire properties
generated through public offering
Target maximum LTV of first half of
50% level for the time being

Borrowing capacityof up to 55% LTV
About ¥10 billion

Changes in NAV per Unit (taking into consideration the split of investment units)
Unitholders’ capital per unit

Unrealized gain / loss per unit (entire portfolio)

NAV per unit

¥87,444¥74,855¥77,329¥78,125¥82,555¥87,813¥87,813¥84,270¥85,579-¥12,958-¥10,484-¥6,145-¥3,024

End of 13th fiscal period
End of 14th fiscal period
End of 15th fiscal period
End of 16th fiscal period(Fiscal period ended Mar. 31, 2012) (Fiscal period ended Sep. 30, 2012) (Fiscal period ended Mar. 31, 2013) (Fiscal period ended Sep. 30, 2013)

March 2012
First sale of HAMAMATSU Plaza

October 2012
15th FP public offering

April 2013
16th FP public offering

Unrealized gain
+ ¥1,865

Prospects after public
offering in April 2014

NAV per unit
expected to increase
further through theissuance of new
investment units at
conditions exceeding
NAV per unit

¥85,579

Resolution of unrealized loss
Fiscal period ended Mar. 31, 2014(End of 17th fiscal period)

September 2013
Second sale of HAMAMATSU Plaza

Note: NAV for each fiscal period is calculated by subtracting
total distributions in each fiscal period from the amountof market value net assets based on appraisal values.

24Debt Finance
Major Initiatives Since the 17th FP ended March 31, 2014
Status of credit rating(as of date of document) January 2014: Made longest borrowing since listing, of approx. 8 years and 1 month for ¥1.8 billion
Maintained spread level (0.50%) of 7-year borrowing (¥5.5 billion) made in August 2013

Japan Credit Rating Agency, Ltd.
(JCR) February 2014: Refinanced a total of ¥10.137 billion (borrowing period of 3 years and 7 months)
Diversified borrowing periods to 6, 7 and 8 years to further extend the borrowing period, andfurther reduced the spreadAA- (Stable)

 February 2014: Issued a total of ¥5.5 billion of investment corporation bonds with redemption
periods of 5 and 10 years

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

Succeeded in issuing bonds with lowest ever level of coupon
Applicable interest rate of 5-year bonds (¥2.5 billion): 0.374% per year (spread: JGB + 0.19%)
Applicable interest rate of 10-year bonds (¥3.0 billion): 1.069% per year (spread: JGB + 0.46%)

A+ (Stable)

Realized further reduction of average borrowing cost rate and extension of average remaining period of borrowings

4.2

(%)

(year)

years

3.0

Average borrowing cost rates (Notes 1 and 2) (left axis)

2.45%

2.47%

3.1

1.97%

2.0

1.0

1.5

years

Average remaining period of borrowing (Note 3) (right axis)

2.0

years

years

1.61%

1.56%

2.0

years

years

2.1

4.5

3.7

3.2

years
3.0

1.47%
2.3

years

1.38%

1.25%

1.5

1.20%

years

1.0

year

0.0

0.0
Fiscal period ended Fiscal period ended Fiscal period ended Fiscal period ended Fiscal period ended Fiscal period ended Fiscal period ended Fiscal period ended Fiscal period ended as of the date of thisMar. 31, 2010
Sep. 30, 2010
Mar. 31, 2011
Sep. 30, 2011
Mar. 31, 2012
Sep. 30, 2012
Mar. 31, 2013
Sep. 30, 2013
Mar. 31, 2014
document(9th fiscal period)(10th fiscal period) (11th fiscal period) (12th fiscal period) (13th fiscal period) (14th fiscal period) (15th fiscal period) (16th fiscal period) (17th fiscal period)

Notes: 1. Average borrowing cost rate during the fiscal period = Period borrowing cost (annualized) ÷ Balance of period average interest-bearing debt; Borrowing cost = Interest expenses + Borrowing related expenses + Interest expenses oninvestment corporation bonds 2. Rounded to the nearest second decimal place. 3. The figures are the result of calculation based on the weighted average using the remaining period from each corresponding date to the repayment(redemption) dates of loans and investment corporation bonds, and their balances and rounded down to the nearest first decimal place.

25

Major Financial Indices Related to Interest-Bearing Debt (1)Continued to promote lengthening of borrowing periods while maintaining optimal balance between fixed and floating rates
by utilizing interest rate swap agreements, etc.
Ratios of Short-Term and Long-Term Borrowings (Notes 1 and 2)

Ratios of Floating and Fixed Interest Rates (Notes 1 and 2)
Floating
100%

11.2％

6.9％

9.7％

28.3％

80%

Fixed

Short-termLong-term (of this, long-term borrowings scheduled to be repaid within 1 year)

2.5%

100%

(25.4%)(25.8%)

80%

3.9%

6.4%

15.7％

(25.9%)(19.3%)

13.0%(17.5%)

100%

60%

60%
88.8％

40%

93.1％

90.3％

71.7％

84.3％

20%
0%

97.5%

96.1%

87.0%

93.6%
40%
20%

End of 14th FP End of 15th FP End of 16th FP End of 17h FP(Sep. 30, 2012) (Mar. 31, 2013) (Sep. 30, 2013) (Mar. 31, 2014)

As of date of
document

0%

End of 14th FP End of 15th FP End of 16th FP End of 17h FP(Sep. 30, 2012) (Mar. 31, 2013) (Sep. 30, 2013) (Mar. 31, 2014)

As of date of
document

Diversification Status of Repayment Dates
As of date of document

Long-term borrowing
Short-term borrowing
Investment corporation bonds(million yen)

16,000・・・Refinancing during the fiscal period ended Mar. 30, 2014
・・・New borrowings during the fiscal period ended Mar. 30, 2014
・・・New borrowings on May 1, 2014

14,00012,000
3,300

8,700

10,000

2,500

8,000

2,000

9,500

9,509

4,000

8,382
4,000

6,650

2,000
0

6,480

6,000

6,000

2,850
17th FP
Ended
Mar. 31,2014

18th FP
Ended
Sep. 30,2014

19th FP
Ended
Mar. 31,2015

20th FP
Ended
Sep. 30,2015

21st FP
Ended
Mar. 31,
2016

2,705
22nd FP
Ended
Sep. 30,2016

23rd FP
Ended
Mar. 31,2017

Notes: 1. The above ratios are rounded to the nearest first decimal place.

24th FP
Ended
Sep. 30,
2017

6,792

2,100

2,500

25th FP
Ended
Mar. 31,2018

26th FP
Ended
Sep. 30,
2018

5,500
3,000

27th FP
Ended
Mar. 31,2019

28th FP
Ended
Sep. 30,2019

29th FP
Ended
Mar. 31,2020

30th FP
Ended
Sep. 30,2020

31st FP
Ended
Mar. 31,2021

32nd FP
Ended
Sep. 30,2021

33rd FP
Ended
Mar. 31,2022

34th FP
Ended
Sep. 30,2022

35th FP
Ended
Mar. 31,2023

36th FP
Ended
Sep. 30,2023

37th FP
Ended
Mar. 31,2024

2. Ratio against the total interest-bearing debt.

26

Major Financial Indices Related to Interest-Bearing Debt (2)Overview of Interest-Bearing Debt

(million yen)

Balance at end of 17thFP

Period-end average
Interest Rate on
Procurement (Note 2)

Balance as of dateof document

Short-term loans¥3,300 million

0.3%¥12,000 million

Long-term loans (Note 3)¥68,968 million

1.1%¥68,968 million

-

-

-

Investment corporation bonds¥11,500 million

0.8%¥11,500 million

Total interest-bearing debt

¥83,768 million

1.0%¥92,468 million

Interest-bearing security deposits

53.4%

LTV (Note 4)

Investment corporation bonds

Long-term loans

Current portion of long-term loans

Short-term loans

100,000
11,50080,00011,5006,000

60,00052,80945,42952,80940,00020,00016,15919,646

4,900

16,1593,300

12,000052.3%(estimated)

Sep. 30, 2013(End of 16th FP)

Loans Payable Outstanding by Financial Institution

Mar. 31, 2014(End of 17th FP)

As of date of document

As of date of document
Financial Institution

Outstanding Balance

Share

Mizuho Bank, Ltd.

¥18,331 million

22.6%

Sumitomo Mitsui Banking Corporation¥18,171 million

22.4%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥8,150 million

10.1%

Solid bank formation centering on leading domestic
financial institutions
Mizuho Bank, Ltd.

1.2%

Sumitomo Mitsui Trust Bank, Limited¥5,700 million

7.0%

1.2% 1.2%

Mizuho Trust & Banking Co., Ltd.

¥5,230 million

6.5%

1.2%

Mitsubishi UFJ Trust and Banking Corporation¥4,642 million

5.7%

Development Bank of Japan Inc.

¥4,141 million

5.1%

The Norinchukin Bank

¥3,852 million

4.8%

Resona Bank, Limited.

¥3,650 million

4.5%

2.2%
4.5%

Aozora Bank, Ltd.

¥1,800 million

2.2%

4.8%

Shinkin Central Bank

¥1,300 million

1.6%

The Senshu Ikeda Bank, Ltd.

¥1,000 million

1.2%

The 77 Bank. Ltd.

¥1,000 million

1.2%

The Hiroshima Bank, Ltd.

¥1,000 million

1.2%

The Yamaguchi Bank, Ltd.

¥1,000 million

1.2%

The Shizuoka Bank, Ltd.

¥1,000 million

1.2%

The Bank of Fukuoka, Ltd.

¥1,000 million

1.2%¥80,968 million

100.0%

Total debt

1.2%

Sumitomo Mitsui Banking Corporation

1.2%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Trust Bank, Limited

1.6%

Mizuho Trust & Banking Co., Ltd.
Mitsubishi UFJ Trust and Banking Corporation

22.6%

Development Bank of Japan Inc.
The Norinchukin Bank
Resona Bank, Limited.

5.1%

Aozora Bank, Ltd.
Shinkin Central Bank

5.7%
22.4%
6.5%

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

7.0%
10.1%

The Yamaguchi Bank, Ltd.
The Shizuoka Bank, Ltd.
The Bank of Fukuoka, Ltd.

Notes: 1. Concerning figures in the graphs and tables above, money amounts of less than one million yen are rounded down and percentage figures are rounded to the nearest first decimal place.
2. The Period-end average interest rate on procurement is the weighted average of applied interest rates as of March 31, 2014, and the figures are rounded to the nearest first decimal place.
3. Includes current portion of long-term loans payable.
4. LTV = Period-end total interest-bearing debt / Period-end total assets (Interest-bearing debt = Loans+ Investment corporation bonds)

27

Memo

Esty Maison YAKUIN

Ⅵ. Forecasts for the 18th Fiscal Period Ending
September 30, 2014 and Current Management Policy

プライムメゾン東桜
マスト博多
マスト博多

Forecasts for the 18th Fiscal Period Ending September 30, 2014
Fiscal Period Ended Fiscal Period Ended Fiscal Period Ended Fiscal Period Ended Fiscal Period Ended Fiscal Period Ending
Mar. 31, 2012
Sep.30, 2012
Mar. 31, 2013
Sep.30, 2013
Mar. 31, 2014
Sep.30, 2014
(183 days)(183 days)(182 days)(183 days)(182 days)(183 days) (Forecast)
Operating revenue (million yen)

3,705

3,567

4,038

4,688

4,952

5,588

Operating income (million yen)

1,600

1,663

1,908

2,179

2,242

2,466

Ordinary income (million yen)

1,165

1,193

1,435

1,684

1,767

1,942

Net income (million yen)

1,164

1,191

1,433

1,681

1,765

1,940

2,023
(10,117)

2,070(10,351)

2,091(10,459)

2,107(10,537)

2,212(11,062)

2,120(10,600)

Cash distributions per unit (yen)<Assumptions of forecast for the 18th fiscal period ending September 30, 2014>◆ Assets under management: 99 properties owned
as of May 1, 2014

◆ Fixed property taxes, etc. that will be recorded as◆ Interest expenses, borrowing related expenses, etc.: Approx. ¥509 million
expenses related to lease business: Approx. ¥287 million◆ Administration service fees: Approx. ¥494 million◆ Depreciation and amortization: Approx. ¥1,249 million◆ Number of investment units issued and outstanding: 915,240 units

Notes: 1. The Investment Corporation implemented a five-for-one split of its investment units on April 1, 2014. Taking into consideration the impact of the split, cash distribution per unit for the fiscal period ended March 31, 2014 and earlier periods are thefifth of the actual figures indicated in parenthesis, and the forecast cash distribution per unit for the fiscal period ending September 30, 2014 shows a figure that is five times the forecast figure in parentheses.
2. Money amounts less than the indicated denomination are rounded down.
3. The above figures are calculated based upon certain assumptions as of May 14, 2014. Actual operating revenue, operating income, ordinary income, net income and cash distributions per unit may differ as a result of subsequent acquisitions orsales of real estate, trends in real estate markets, changes in the operating environment or other conditions affecting the Investment Corporation. The above forecasts are not intended to be guarantees of business results or cash distributions.

Changes in Operating Revenue, Operating Income and Net Income(million yen)

6,000

Changes in Cash Distribution Per Unit
( yen)

Operating revenue

Operating income

Net income

5,000

2,500
2,000

4,000
1,500
3,000
1,000
2,000
500

1,000
0

0
Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period
Ended Mar. 31, Ended Sep. 30, Ended Mar. 31, Ended Sep. 30, Ended Mar. 31, Ended Sep. 30,
2012
2012
2013
2013
2014
2014

Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period Fiscal Period
Ended Mar. 31, Ended Sep. 30, Ended Mar. 31, Ended Sep. 30, Ended Mar. 31, Ended Sep. 30,
2012
2012
2013
2013
2014
2014

30

Analysis of Factors of Change in Forecast Cash Distributions for 18th Fiscal Period
Compared to Actual Cash Distributions for 17th Fiscal Period
Absence of gain on sale and the decrease of distributions due to the cost increase of consumption tax are expected to becovered to a certain extent by the acquisition of properties in connection with public offering

Factors of change

Impact on cash
distributions

Impact on net income① Absence of gain on sale from the transfer of Esty Maison SENDAGAYA and decrease in lease business-¥40 million-¥51-¥21 million-¥27＋¥73 million＋¥92(mainly due to the increase of consumption tax, etc.)-¥96 million-¥121⑤ Increase in lease business profit with the acquisition of new properties
Execution of⑥ Increase of general management fees and non-operating expenses, etc.
public offering⑦ Dilution with the increase of investment units＋¥303 million＋¥331-¥42 million

-¥47

－

-¥269

profit② Decrease in lease business profit from 17th FP initial forecast assumption properties(mainly due to the increase of fixed property taxes, etc.)
Other thanpublic offering ③ Increase in lease business profit through full-period operation of 3 properties additionally acquired in the
17th FP④ Increase of general management fees and non-operating expenses, etc.

( yen)

2,500

Actual cash
distribution per unit
for the 17th fiscal period
2,250 ended March 31, 2014

+¥331

-¥51

①

+¥92

-¥121

③

④

-¥47

-¥269

⑥

-¥27

②

2,000

⑤

Forecast cash
distribution per unit
for the 18th fiscal
period ending
September 2014⑦

・Of this, increase of fixed property taxes, etc. -¥78
1,750

¥2,120・Of this, increase of consumption tax, etc. with tax hike, etc. -¥47
1,500

1,250

¥2,212¥2,105(¥11,062)(¥10,525)

Estimated cash distributions per unit
for the 18th FP ending September
2014 assuming the public offering in
April 2014 was not made(¥10,600)

1,000(Announced May 14, 2014)(Announced May 14, 2014)31

Current Management Policy
Phase II of the Investment
Corporation’s growth strategy
in progress

External Growth Strategy

Management Policy

Strategic Target

Increasing profitability through fullfledged expansion of asset size

Aiming for an asset size of ¥200
billion while considering the cash
distribution level

Internal Growth Strategy

Financial Strategy

 Continuous property acquisitions

 Focusing on occupancy rates•

Utilization of sponsor’s pipeline andwarehousing function•

Reducing down time by setting rents at an
appropriate level and in a flexible manner•Considering the sale of retail properties
and replacement of assets undermanagement with residential properties•

Utilizing of leasing network of the Sekiwa
Real Estate Group(considering to make distribution in excess ofearnings as well when loss on sale arises) Increasing of profitability

 Target of NOI yield upon property
acquisitions
Greater Tokyo : Around 5.0% or higher
Major Regional Cities : 5.5% or higher
Reinforcement of profit base throughexpansion of the portfolio size•

Promoting contract renewals with higher
rents while keeping the current renewal rateof tenants•

Focusing on upward revision of rents
and proactive acquisition of key money
for high occupancy properties

Increasing of profitability of existing
portfolio

 Conservative control of LTV•

Controlling LTV conservatively with thefirst half of the 50% level as a target for
LTV ceiling Reduction of financing costs•

Reducing financing costs by issuinginvestment corporation bonds

 Maintenance and enhancement offinancial soundness•

Maintaining the ratio of borrowings with
fixed interest and promoting further
lengthening of borrowing periods
Further reinforcement of the stabilityof financial base

Steady implementation of each strategy, with around two years set as the period required to achieve the strategic
target of Phase II of the Investment Corporation’s growth strategy
32

Residential Properties Planned and Developed by Sekisui House
Prime Maison properties completed or under construction/planning that
Sekisui house planned or developed, with the Asset Management
Company participating in property planning meetings as an observer

Other Prime Maison properties owned by
Sekisui House (uncomprehensive)

Completed properties
2 properties 136 units total
Sekisui House

ExchangeofOpinion

Demandinformation

Supplyinformation

Development Department

Sekisui House SI
Asset Management

Prime Maison MORISHITA

Prime Maison SHINAGAWA

Prime Maison ODORI KOEN

Prime Maison GOTENYAMA WEST

(Koto-ku, Tokyo)
86 units total<Completed in May 2013>(Shinagawa-ku, Tokyo)
50 units total<Completed in March 2014>(Sapporo City, Hokkaido)(Shinagawa-ku, Tokyo)

Real Estate Investment Department

Under construction (confirmed)
6 properties 677 units total

Properties in theplanning stage

Note: There are no specific plans for acquiring the above properties as of the date ofthis document.

[Reference]
Acquisitions by utilizing the Sekiwa Real
Estate Group property pipeline throughout
Major Cities Nationwide as well

3 properties
411 units total(Tentative name)(Tentative name)(Tentative name)Prime Maison

Prime Maison SHIBUYA

Prime Maison EBISU(Shibuya-ku, Tokyo)
70 units total(Shibuya-ku, Tokyo)
100 units total

YOKOHAMA NIHONODORI(Yokohama City, Kanagawa)
137 units total

MAST HAKATA

Esty Maison HIGASHI SHIRAKABE(Fukuoka City, Fukuoka)
Acquired February 2012

(Nagoya City, Aichi)
Acquired October 2012

MAST LIFE AKIHABARA

Esty Maison TSURUMAI(Chiyoda-ku, Tokyo)
Acquired January 2014

(Nagoya City, Aichi)
Acquired May 2014

All 11 properties are located in Greater Tokyo / Major Urban Areas(of these, 10 are in Tokyo’s 23 wards)
Note: Images of properties that are “under construction” are renderings based on the design documents and may differ from theactual buildings. Also, “total units” includes units that are not for residential purpose. Furthermore, the Investment Corporation
has no specific plans to acquire any of the properties above as of the date of this document

33

[Reference] Sixth General Meeting of Unitholders
Date and venue■ Scheduled date of meeting

June 11, 2014 (Wed) from 10 A.M.

■ Venue Fukurashia Tokyo Station (Chiyoda-ku, Tokyo)

Agendas of general meeting of unitholders■ Matters to be resolved and main content

Proposal 1: Partial amendment of Article of Incorporation● Change of the Investment Corporation’s tradename and relocation of head office● Change of investment target to residences only

The Investment Corporation will change its trade name to “Sekisui House SI Residential
Investment Corporation” in order to strongly demonstrate its transformation from a “diversified
REIT centering on residential properties” to a “REIT specialized in residential properties,” under
the collaboration structure with Sekisui House, the main sponsor. It will also relocate its head
office from Chiyoda-ku in Tokyo to Minato-ku in Tokyo.

Identifying real estate-related assets that are mainly used as residence as the investment targetof the Investment Corporation and remove retail properties, which have been identified as
supplementary investment target, from the investment target, in order to more vigorously
implement the basic strategy of building a portfolio centering on high-quality rental residential
properties developed by Sekisui House.

Proposal 2: Appointment of 1 Executive Director● Appointment of Executive Director

Appointment of Osamu Minami, the President of the Asset Management Company, upon the
expiration expiry of the executive director’s term of office.

Proposal 3: Appointment of 1 Substitute Executive Director● Appointment of Substitute Executive Director

Appointment of Nobuyoshi Sato, the Executive Vice President of the Asset Management
Company.

Proposal 4: Appointment of 2 Supervisory Directors● Appointment of 2 Supervisory Directors

Appointment of Kaoru Takamatsu and Mikio Koyano, current supervisory directors, upon the
expiration of their terms of office.
34

Esty Maison NAKANO

Ⅶ. Appendix

プライムメゾン東桜
マスト博多
マスト博多

Balance Sheets (1)16th fiscal period(As of September 30, 2013)
Million yen

17th fiscal period(As of March 31, 2014)

Percent of total

Million yen

ChangePercent of total

Period on period(%)

Million yen

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Deferred tax assets
Consumption tax receivable
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
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 noncurrent assets

5,343
4,143
83
130
0
37
20
-1
9,758

66,368-8,04958,319
487
-106
381
837
-235
602
76
-32
43
79,003
138,349
158
2
160
235
224
109
569
139,079

6.6

3,442
4,174
159
116
0
13
0
-0
7,905

92.9

71,913-9,01362,900
551
-122
428
961
-270
690
86
-38
48
84,024148,092

0.1

156
1
157

0.4
93.4

235
299
115
651
148,901

5.0-1,900
30
75
-14
-0
-24
-20
0
-1,852

-19.0

94.4

5,545
-963
4,581
64
-16
47
123
-34
88
10
-5
4
5,021
9,743

7.0

0.1

-2
-0
-2

-1.6

0.4
94.9

-0
75
5
81
9,821

14.3
7.1

Deferred assets
Investment corporation bond issuance costs

33

Total deferred assets

33

0.0

70

0.1

37

112.3

148,871100.0

156,878

100.0

8,006

5.4

Total Assets

70

37

36

Balance Sheets (2)16th fiscal period(As of September 30, 2013)
Million yen

17th fiscal period(As of March 31, 2014)

Percent of total

Million yen

ChangePercent of total

Million yen

Period on period (%)

Liabilities
Current liabilities
Operating accounts payable

217

305

87

Short-Term loans payable

4,900

3,300

-1,600Current portion of long-term loans payable-3,487

19,646

16,159Accounts payable – other

368

416

48

Accrued expenses

79

69

-10

Income taxes payable

1

2

0

Advances received

333

258

-74

Other
Total current liabilities

16
25,56229
17.2

20,54113
13.1-5,021-19.6

Noncurrent liabilities
Investment corporation bonds

6,000

11,5005,500Long-term loans payable

45,42952,809

7,380

Tenant leasehold and security deposits in trust

1,903

1,967

Total noncurrent liabilities

53,33235.8

66,27742.2

12,944

24.3

Total Liabilities

78,89553.0

86,818

55.3

7,923

10.0

68,29445.9

68,294

43.6

-

-

64

Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)

1,681

Total surplus

1,681

1.1

1,765

1.1

83

5.0

Total unitholders’ equity

69,97647.0

70,059

44.7

83

0.1

69,97647.0

70,059

44.7

83

0.1

148,871100.0

156,878

100.0

8,006

5.4

Total Net Assets
Total Liabilities and Net Assets

1,765

83

37

Statements of Income
16th fiscal period
from April 1, 2013 to September 30, 2013
Million yen

Percent of total

17th fiscal period
from October 1, 2013 to March 31, 2014
Million yen

Percent of total

ChangeMillion yen

Period on period (%)

Operating revenue
Rent revenue - real estate

4,683

4,917

233

Gain on sales of real estate properties

-

35

35

Silent partnership distribution

4-

Total operating revenue

4,688

100.0

4,952

-4
100.0

264

5.6

Operating expenses
Expenses related to rent business

2,066

2,233

8

-

-8

Asset management fee

295

326

30

Asset custody fee

12

13

0

Administrative service fees

28

30

2

Directors’ compensations

3

3

-

Provision of allowance for doubtful accounts

0

0

0

Loss on sales of real estate properties

167

Other operating expenses

93

Total operating expenses

2,508

53.5

2,710

54.7

202

8.1

2,179

46.5

2,242

45.3

62

2.9

Operating income

1028

Non-operating income
Interest income

0

0

-0

Reversal of distributions payable

0

0

-0

Interest on refunds

0

0

-0

Compensation received

0

5

5

Other

0

0

-0

Total non-operating income

2

0.0

6

0.1

4

225.5

Non-operating expenses
Interest expenses

387

389

2

Interest expenses on investment corporation bonds

22

25

3

Amortization of investment corporation bond issuance costs

3

3

0

Borrowing related expenses

62

61

-0

Investment unit issuance expenses

21

-

-21

Other

0

0

Total non-operating expenses

-0

497

10.6

481

9.7

-16

-3.3

Ordinary Income

1,684

35.9

1,767

35.7

83

5.0

Income before Income Taxes

1,684

35.9

1,767

35.7

83

5.0

Income taxes - current

2

Income taxes - deferred-0

Total income taxes

2

0.0

2

0.1

-0

-3.1

1,681

35.9

1,765

35.6

83

5.0

Net Income
Retained earnings brought forward
Unappropriated Retained Earnings (undisposed loss)

2
0

0
1,681

-0
0

0
35.9

1,765

0
35.6

83

5.0

38

Statement of Cash Flows / Cash Distributions
Statement of Cash Flows
16th fiscal period
from April 1, 2013
to September 30, 2013
Million yen

17th fiscal period
from October 1, 2013
to March 31, 2014
Million yen

16th fiscal period
from April 1, 2013 to
September 30, 2013

17th fiscal period
from October 1, 2013
to March 31, 2014

Million yen

Million yen

Net cash provided by (used in) investment activities

Net cash provided by (used in) operating activities
Income before income taxes

1,684

1,767

Purchase of property, plant and equipment in trust

Depreciation and amortization

1,019

1,074

Proceeds from refund of investment securities

3

3

Amortization of investment corporation bondissuance costs
Increase (decrease) in allowance for doubtful
accounts-0-0Interest income-0-0Interest expenses

410

415

Decrease (increase) in operating accounts
receivable

-21

-75

Decrease (increase) in prepaid expenses

-14

16

Decrease (increase) in consumption tax receivable

22

24

Increase (decrease) in operating accounts payable

19

21

Increase (decrease) in accounts payable – other

53

28

-

219

182

-803

-118

Decrease (increase) in investments and other assets-5-5

Net cash provided by (used in) investment activities-16,677-11,211

4,900

3,300

Net cash provided by (used in) financing activities
Proceeds from short-term loans
Repayments of short-term loans payable--4,900

Proceeds from long-term loans payable

8,000

14,030-8,000-10,137-50-74

Decrease from sale of property, plant andequipment in trust

2,232

541

Repayments of long-term loans payable

-

5,458

10,495-

Dividends paid

-1,432-1,680Net cash provided by (used in) financing activities

13,962

6,071

Net increase (decrease) in cash and cash equivalents

2,214-1,869Cash and cash equivalents at beginning of period

7,272

9,486

Cash and cash equivalents at end of period

9,486

7,616

Decrease (increase) in long-term prepaid expenses

-33

-77

Proceeds from the issue of investment corporation bonds

Other

16

33

Proceeds from the issue of investment units

5,339

3,697

0

0

Interest income received-409

Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

-426

-2

-1

4,928

3,270

-11,270

159

Proceeds from tenant leasehold and security deposits intrust received
Repayments of tenant leasehold and security deposits intrust received

Increase (decrease) in advances received

Subtotal-16,246

Statement of Cash Distributions
16th fiscal period
from April 1, 2013 to
September 30, 2013
Yen

17th fiscal period
from October 1, 2013
to March 31, 2014
Yen

I Unappropriated retained earnings

1,681,846,853

1,765,604,403

II Cash distributions

1,681,757,885

1,765,550,510（10,537）（11,062）

88,96853,893(Cash distributions per unit)
III Retained earnings brought forward

39

Summary of Selected Financial Data
16th fiscal period
from April 1, 2013 to
September 30, 2013

17th fiscal period
from October 1, 2013 toMarch 31, 2014

183 days

182 days

Total assets

148,871 million yen

156,878 million yen

Net assets

69,976 million yen

70,059 million yen

Unitholders’ capital

68,294 million yen

68,294 million yen

798,025 units（159,605 units）
87,686 yen（438,432 yen）

798,025 units（159,605 units）
87,791 yen（438,957 yen）

1,681 million yen

1,765 million yen

2,107 yen
（10,537 yen）

2,212 yen
（11,062 yen）

Ordinary income to total assets2(annualized)

2.4%

2.3%

Return on unitholders’ equity(annualized)

5.2%

5.1%

47.0%

44.7%

89

95

301,179.47 m2

318,602.26 m2

97.1%

97.5%

1,018 million yen

1,073 million yen

17 million yen

86 million yen

3,636 million yen

3,757 million yen

2,709 million yen

2,804 million yen

3,395 yen
（16,978 yen）

3,514 yen
（17,571 yen）

75,975 million yen

83,768 million yen

Loan to Value7 (LTV)

51.0%

53.4%

Interest-bearing debt ratio8

52.7%

55.1%

6.8 times

7.8 times

Business days

Investment units issued1
Net assets per unit1
Total cash distributions
Cash distributions per unit1

3

Unitholders’ equity ratio4
Total number of properties
Total rentable floor area
Period-end occupancy rate
Depreciation expense
Capital expenditures
Leasing Net Operating Income(NOI)
Funds from Operation6 (FFO)
FFO per unit1
Total interest-bearing debt

Debt Service Coverage Ratio9(DSCR)

5

1. In consideration of the impact of the five-for-one split of investment units on April 1, 2014, thefigures for “Number of investment units issued” are five times the actual figures indicated inparentheses while figures for “Net assets per unit,” “Cash distributions per unit” and “FFO per unit”
are a fifth of the actual figures indicated in parentheses rounded down to the nearest whole
number.
2. Ordinary income to total assets = Ordinary income (annualized) / Average total assets Average
total assets = (Period-beginning total assets + Period-end total assets) / 2
3. Return on unitholders’ equity = Net income (annualized) / Average net assets Average net assets= (Period-beginning net assets + Period-end net assets) / 2
4. Unitholders’ equity ratio = Period-end net assets / Period-end total assets
5. Leasing NOI = Leasing operating income (= Lease business revenue – Expenses related to leasebusiness) + Depreciation and amortization (Expenses related to lease business)
6. FFO = Net income – Gain on sales of real estate properties + Loss on sales of real estate
properties + Depreciation and amortization
7. LTV = Period-end interest-bearing debt / Period-end total assets
Interest-bearing debt = Borrowings + Investment corporation bonds + Interest-bearing tenantleasehold and security deposits
8. Interest-bearing debt ratio = Period-end interest-bearing debt / (Period-end interest-bearing debt +Unitholders’ capital)
9. DSCR = (Net income + Repayment of interest-bearing debt + Interest expenses + Depreciation
and amortization) / (Repayment of interest-bearing debt + Interest expenses)
Note: Ratios are rounded to the nearest first decimal place.

40

History of the Investment Corporation since ListingManagement before change of sponsor

Management after change of sponsor

Total acquisition
Price (million yen)99
properties
171,099

180,000

170,000

Assets acquired after change of sponsor
Assets acquired before change of sponsor

160,000
150,000
140,000
130,000
120,000
110,000

100,000

July 28, 2005
Listed on the Tokyo
Stock Exchange

90,00080,00070,00060,00050,00021
properties
47,51628
properties
61,70720,00010,00042properties
81,473

August 29,
2005
Third-party
allotment
2,000 units

53
properties
99,91953
properties
99,920(Note 1)53
properties
99,920

Sale of 1
property
End of 2nd FP
End of 3rd FP(Sep. 30, 2006) (Mar. 31, 2007)57
properties
103,97460
properties
101,006(Note 1)

October 1,
2012
Public offering
20,460 units
October 26, 2012
Third-party
allotment
1,540 units
February 28,
2013
Investment
corporation
bonds¥6,000 million

Change of trade
nameMarch 13,
2007
Investment
corporationbonds¥10,000 million-10,000

53
properties
99,92066
properties
110,214

April 2, 2010
Third-party
allotment
10,400 units

November 21,
2007
Third-party
allotment
1,170 units0

End of 1st FP(Mar. 31, 2006)

52
properties
99,048October 24, 2007
Public offering
17,500 units

October 18,
2006
Public offering
28,500 units
November 16,
2006
Third-party
allotment
1,500 units

40,00030,00038
properties
82,21748
properties
91,81858
properties
106,234

77
properties
128,794

Sale of 1
property

End of 6th FP
End of 7th FP(Sep. 30, 2008) (Mar. 31, 2009)

End of 8th FP(Sep. 30, 2009)

End of 9th FP End of 10th FP(Mar. 31, 2010) (Sep. 30, 2010)

End of 11th FP End of 12th FP(Mar. 31, 2011) (Sep. 30, 2011)

End of 13th FP(Mar. 31, 2012)

End of 14th FP(Sep. 30, 2012)

April 22,2013
PublicOffering
21,430units
May 23, 2013
Third-party
allotment
1,105
units

April 1, 2014
Split ofInvestment Units
April 21, 2014
Public Offering
111,600 units
February 28,
2014
Investment
corporationbonds¥5,500 million

Sale of HAMAMATSU Sale of 1
property
Plaza East,
Ito-Yokado Building

Partial sale of
HAMAMATSU Plaza, etc.

End of 4th FP
End of 5th FP(Sep. 30, 2007) (Mar. 31, 2008)89
properties
141,472

95
properties
151,744

End of 15th FP(Mar. 31, 2013)

End of 16th FP(Sep. 30, 2013)

End of 17th FP(Mar. 31, 2014)

As of date of
document

Unitholders’capital¥28,491
million¥42,297
million¥48,704
million¥50,523
million¥57,755
million¥68,294
million¥78,544
millionNumber ofinvestment units

56,000units

86,000units

104,670
units

115,070
units

137,070
units

159,605
units

909,625
units

Total interestbearing debt
(Note 2)

¥23,165
million¥34,724
million¥42,382
million¥43,090
million¥44,523
million¥52,181
million¥51,639
million¥51,449
million¥51,208
million¥49,229
million¥51,874
million¥54,032
million¥58,073
million¥59,503
million¥71,434
million¥75,975
million¥83,768
million¥92,468
millionLTV(Note 3)

41.7%

51.7%

47.3%

47.7%

45.2%

49.3%

49.3%

49.0%

48.9%

47.1%

48.3%

49.3%

51.5%

52.1%

53.4%

51.0%

53.4%

-

¥12,995¥13,035¥13,023¥14,402¥11,147¥5,485¥10,262¥10,052¥8,160¥9,793¥10,045¥10,117¥10,351¥10,459¥10,537¥11,062-

Cash distribution¥17,277
per unit（¥12,730）(Note 4)

Notes: 1. With regard to Bell Plaza Shopping Center acquired in the fiscal period ended March 31, 2008, the former waterway on site, adjacent signboards and the site itself were additionally acquired at a total of ¥1 million during the fiscal period ended September 30, 2009. Also, the building additionally built on the site was additionallyacquired on June 29, 2012 for ¥18 million.
2. Total interest-bearing debt = Loans payable + Investment corporation bonds + Interest-bearing tenant leasehold and security deposits
3. LTV = Period-end interest-bearing debt / Period-end total assets
4. The operating period for the first fiscal period was the 346 days between April 20, 2005 and March 31, 2006. The actual management period was the 247 days between July 28, 2005 and March 31, 2006. In order to compare with the successive fiscal periods, the figure calculated with the number of management days as 182 isindicated in parentheses.

41

Portfolio Map (1)As of date of document

Residence (property number)
Retail Properties (property number)

Osaka City
Greater Tokyo / Major Urban Areas
Adachi-ku

Itabashi-ku
Kita-ku

Nerima-ku

Katsushika-ku
Arakawa-ku
Toshima-ku

Musashino
City
KoganeiCity

Fukuoka City

Nakano-ku

Mitaka City

Suginami-ku

Taito-ku

Bunkyo-ku
Shinjuku-ku

Sumida-ku

Edogawa-ku

Chiyoda-ku
Shibuya-ku

Chuo-ku

Koto-ku

Minato-ku
Setagaya-ku

Meguro-ku

Kawasaki City

Shinagawa-ku

Ota-kuYokohama City

Greater Tokyo / Other Urban Areas
Nagoya CityTokyo

Kanagawa

Portfolio ＰＭＬ

4.9%（Entire portfolio）

Note: “Portfolio PML” is as of the survey in March 2014 on owned
assets at the end of the fiscal period ended March 31, 2014
(17th fiscal period) and does not include RINKU HAGURAZAKI
Plaza because the Investment Corporation owns only the land.

42

Portfolio Map (2)Greater Tokyo / Major Urban Areas

Greater Tokyo / Other Urban Areas
Residence

Residence

Major Regional Cities
Residence

Residence

Residence-1

Esty Maison GINZA

Residence-62 Esty Maison AKIHABARA

Residence-11 Esty Maison MACHIDA

Residence-13 Esty Maison IMAIKE

Residence-3

Esty Maison AZABUNAGASAKA

Residence-63 Esty Maison SASAZUKA

Residence-18 Esty Maison YACHIYOMIDORIGAOKA

Residence-20 Esty Maison KYOBASHI

Residence-4

Esty Maison EBISU II

Residence-64 Prime Maison GINZA EAST

Residence-40 Esty Maison HACHIOJIMINAMINO

Residence-23 Esty Maison MINAMIHORIE

Residence-5

Esty Maison EBISU

Residence-69 Esty Maison SENGOKU

Residence-50 Prime Maison MUSASHINONOMORI

Residence-28 Esty Maison JYOUTOU

Residence-6

Esty Maison KANDA

Residence-8

Esty Maison KITASHINJUKURetail Properties

Residence-70 Esty Maison DAIZAWA
Residence-71 Esty Maison TOGOSHI

Retail-5

KOJIMA NEW KAMIFUKUOKATENResidence-74 Esty Maison SHIROKANEDAI

Retail-8

Joy Square YUGAWARA

Residence-10 Esty Maison ASAKUSAKOMAGATA
Residence-12 Esty Maison KAWASAKI
Residence-14 Esty Maison SHINKAWASAKI
Residence-15 Esty Maison YOKOHAMA
Residence-16 Esty Maison KAMEIDO

Residence-75 Esty Maison HIGASHISHINJUKUResidence-19 Esty Maison SUGAMO

Residence-79 Esty Maison NAKANO

Residence-21 Esty Maison MEGUROHONCHO

Residence-80 Esty Maison SHINNAKANO

Residence-22 Esty Maison HAKURAKU

Residence-81 Esty Maison NAKANOFUJIMICHO

Residence-24 Esty Maison GOTANDA

Residence-82 Esty Maison TETSUGAKUDO

Residence-36 Esty Maison TENJINHIGASHI II

Residence-41 Esty Maison NISHINAKAJIMA

Residence-77 Esty Maison TORITSUDAIGAKU
Residence-78 Esty Maison MUSASHIKOYAMA II

Residence-35 Esty Maison TENJINHIGASHI I

Residence-37 Esty Maison SHIJONISHINOTOIN

Residence-76 Esty Maison MOTOAZABUResidence-17 Esty Maison MEGURO

Residence-29 Esty Maison TSUKAMOTO

Residence-46 Esty Maison HAKATAHIGASHI
Residence-47 Esty Maison KAMIGOFUKUResidence-51 Prime Maison HIGASHISAKURA
Residence-52 Prime Maison KAYABAKOEN

Residence-25 Esty Maison OISENDAIZAKA
Residence-26 Esty Maison SHINAGAWA SEASIDE

Residence-55 MAST HAKATA
Residence-58 Prime Maison GOKISO
Residence-83 Esty Maison KOENJI
Residence-59 Prime Maison YUHIGAOKA
Residence-84 Esty Maison OSHIAGE

Residence-27 Esty Maison MINAMIAZABUResidence-60 Prime Maison KITATANABE
Residence-85 Esty Maison AKABANE

Residence-30 Esty Maison KAWASAKI II

Residence-61 Prime Maison MOMOCHIHAMAResidence-86 Esty Maison OJI
Residence-31 Esty Maison AZABUJUBAN
Residence-33 Esty Maison ITABASHIHONCHO
Residence-34 Esty Maison OIZUMIGAKUEN

Residence-89 Prime Maison JINBOCHO

Residence-42 Esty Maison ITABASHIKUYAKUSHOMAE

Residence-90 Prime Maison GOTENYAMA EAST

Residence-43 Esty Maison MUSASHIKOYAMA

Residence-91 MAST LIFE AKIHABARA

Residence-44 Esty Maison SENDAGIResidence-48 Esty Maison SANGENJAYAResidence-53 Esty Maison SANGENJAYA IIResidence-66 Prime Maison YADAMINAMI

Residence-88 Prime Maison HATCHOBORIResidence-39 Esty Maison HIGASHISHINAGAWA

Residence-45 Esty Maison YOTSUYASAKAMACHI

Residence-65 Prime Maison TAKAMI

Residence-87 Prime Maison WASEDA

Retail-4
Retail-7

Properties acquired as of May 1, 2014

Residence

Residence-68 Esty Maison HIGASHISHIRAKABE
Residence-72 Esty Maison KAWARAMACHI

Residence-94 Esty Maison KINSHICHO II

Residence-73 Esty Maison NISHITENMA

Residence-95 Esty Maison OJIMA

Residence-92 Esty Maison AOI

b-town MINAMIAOYAMA

Residence-96 Prime Maison FUJIMIDAI

Residence-93 Esty Maison YAKUIN

b-toss IKEBUKURO

Residence-97 Esty Maison TSURUMAI

Retail Properties
Retail-2

Residence-67 Prime Maison TERIHA

b-town JINGUMAE II

Retail Properties

Residence-54 Esty Maison ITABASHI C6Retail-1

HAMAMATSU Plaza

Retail-3

RINKU HAGURAZAKI Plaza

Retail-9

Bell Plaza Shopping Center

Residence-56 Esty Maison KINSHICHO
Residence-57 Esty Maison MUSASHIKOGANEI43

Status of Portfolio ~Residence~Primary Properties Owned
Greater Tokyo / Major Urban Areas
Esty Maison
GINZA

Esty Maison
OISENDAIZAKA

Esty Maison
YOKOHAMA
エスティメゾン横浜

Greater Tokyo / Other Urban Areas
Esty Maison MACHIDA

Prime Maison MUSASHINONOMORI

Prime Maison
GINZA EAST

Esty Maison
SENGOKU

Major Regional Cities
Prime Maison
HIGASHISAKURAMASTHAKATA

44

Status of Portfolio ~ Retail Properties ~Remaining Contract Period

Properties Owned
Greater Tokyo / Major Urban Areasb-town JINGUMAE II

b-town MINAMIAOYAMA

b-tossIKEBUKURO

Less than 3 years
10 years or more

42.8%

39.1%
Weighted average ofremaining years 7.2 years
5 years to less than 10 years

17.4%

3 years to less than 5 years

0.8%

As of end of fiscal period ended
March 31, 2014 (17th fiscal period)

Greater Tokyo / Other Urban Areas
KOJIMA NEW
KAMIFUKUOKATEN

Joy Square YUGAWARA

Major Regional Cities
HAMAMATSU PlazaRINKU HAGURAZAKI
Plaza

Bell Plaza Shopping Center

Note: The weighted average of remaining years is based on tenant lease agreements effective as of the end of the fiscal period ended March 31, 2014 (17th fiscal period) and calculated by seeking the weighted average with the highest shop
rent (excluding sales rent) during the lease period, and are rounded down to the nearest first decimal place.

45

List of Properties Owned at End of Period (1)Appraisal
Value at
End ofFiscalPeriod(Million yen)

Acquisition Price
Property No.

Property Name

Location

Site Area(m2)

Residence-1

Esty Maison GINZA

Residence- 3

Esty Maison AZABUNAGASAKA

Roppongi, Minato-ku, Tokyo

677.45Residence- 4

Esty Maison EBISU II

Higashi, Shibuya-ku, Tokyo

Residence- 5

Esty Maison EBISU

Hiroo, Shibuya-ku, Tokyo

Residence-6

Esty Maison KANDA

Kandata-cho, Chiyoda-ku, Tokyo

307.69Ginza, Chuo-ku, Tokyo

Total Floor
Area
(m2)

Price
(Million yen)

Ratio
(%)

Occupancy Rate (%)

As of Sep.
30, 2013

As of Mar.
31, 2014

Completion Date

5,290

3.5

5,680

96.3

97.0 February 7, 2005

2,317.87

1,730

1.1

1,560

96.5

98.7 January 16, 2004

561.582,452.69

1,960

1.3

1,790

91.7

91.3 June 13, 2003

169.00871.90

700

0.5

775

100.0

96.8 October 20, 2004

2,028.19

1,360

0.9

1,360

100.0

97.4 February 20, 2004

636.36

7,836.57

Residence-8

Esty Maison KITASHINJUKU

Kita-shinjuku, Shinjuku-ku, Tokyo

504.412,204.07

1,290

0.9

1,440

90.0

88.3 August 6, 2004

Residence-10

Esty Maison ASAKUSAKOMAGATA

Komagata, Taito-ku, Tokyo

663.54

3,406.10

1,870

1.2

1,940

96.9

98.6 July 28, 2004

Residence-11

Esty Maison MACHIDA

Hara-machida, Machida-shi, Tokyo

587.484,033.59

1,360

0.9

1,420

94.9

96.3 February 23, 2004

Residence-12

Esty Maison KAWASAKI

Ogawa-cho, Kawasaki-ku, Kawasaki-shi, Kanagawa

683.694,656.10

2,130

1.4

2,280

95.4

98.7 July 15, 2004

Residence-13

Esty Maison IMAIKE

Imaike, Chikusa-ku, Nagoya-shi, Aichi

360.54

1,375.76

300

0.2

192

100.0

91.9 October 15, 1991

Residence-14

Esty Maison SHINKAWASAKI

Furuichiba, Saiwai-ku, Kawasaki-shi, Kanagawa

1,992.09

3,737.47

1,018

0.7

1,090

100.0

100.0 March 5, 1999

Residence-15

Esty Maison YOKOHAMA

Tsuruya-cho, Kanagawa-ku, Yokohama-shi, Kanagawa

611.41

3,076.45

2,090

1.4

1,980

100.0

100.0 January 23, 2007

Residence-16

Esty Maison KAMEIDO

Kameido, Koto-ku, Tokyo

438.432,899.67

1,650

1.1

1,380

99.0

100.0 November 30, 2005

Residence-17

Esty Maison MEGURO

Mita, Meguro-ku, Tokyo

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

Midorigaoka, Yachiyo-shi, Chiba

Residence-19

Esty Maison SUGAMO

Residence-20
Residence-21

578.01

1,283.92

887

0.6

974

90.5

100.0 November 28, 2005

1,289.14

5,420.53

1,348

0.9

1,110

95.1

93.6 January 10, 1998

Sugamo, Toshima-ku, Tokyo

965.702,785.83

1,510

1.0

1,450

100.0

97.2 February 22, 2007

Esty Maison KYOBASHI

Higashinoda-cho, Miyakojima-ku, Osaka-shi, Osaka

799.685,995.82

2,774

1.8

2,700

96.7

95.4 March 2, 2006

Esty Maison MEGUROHONCHO

Megurohoncho, Meguro-ku, Tokyo

865.22

1,975.84

1,220

0.8

996

96.9

96.4 February 22, 2006

Residence-22

Esty Maison HAKURAKU

Rokkakubashi, Kanagawa-ku, Yokohama-shi, Kanagawa

457.54

1,593.68

844

0.6

837

96.5

94.7 February 2, 2006

Residence-23

Esty Maison MINAMIHORIE

Minamihorie, Nishi-ku, Osaka-shi, Osaka

475.06

1,994.14

1,055

0.7

982

98.4

98.6 February 19, 2007

Residence-24

Esty Maison GOTANDA (Note 5)

Nishi-gotanda, Shinagawa-ku, Tokyo

593.325,590.34

3,043

2.0

2,720

98.4

96.0 March 2, 2006

Residence-25

Esty Maison OISENDAIZAKA

Higashi-oi, Shinagawa-ku, Tokyo

558.393,440.73

2,440

1.6

2,420

95.8

97.4 August 10, 2006

Residence-26

Esty Maison SHINAGAWA SEASIDE

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,049.00

3,127.48

2,200

1.4

2,050

93.6

97.2 June 23, 2006

Residence-27

Esty Maison MINAMIAZABUMinamiazabu, Minato-ku, Tokyo

487.27

1,479.61

1,300

0.9

1,180

94.2

98.1 August 23, 2006

Residence-28

Esty Maison JYOUTOU

Noe, Jyoutou-ku, Osaka-shi, Osaka

740.492,232.26

1,075

0.7

930

97.0

98.5 August 31, 2006

Residence-29

Esty Maison TSUKAMOTO

Tsukamoto, Yodogawa-ku, Osaka-shi, Osaka

808.542,565.66

1,250

0.8

1,060

100.0

100.0 August 10, 2006

Residence-30

Esty Maison KAWASAKI II

Ogawa-cho, Kawasaki-ku, Kawasaki-shi, Kanagawa

601.383,193.14

1,900

1.3

1,940

97.0

99.2 February 27, 2007

Residence-31

Esty Maison AZABUJUBAN

Azabujuban, Minato-ku, Tokyo

380.26

2,097.45

2,700

1.8

2,410

94.7

98.7 February 22, 2007

Residence-33

Esty Maison ITABASHIHONCHO

Yamato-cho, Itabashi-ku, Tokyo

220.85

1,446.78

1,000

0.7

882

90.7

96.9 February 27, 2007

Residence-34

Esty Maison OIZUMIGAKUEN

Higashi-Oizumi, Nerima-ku, Tokyo

618.001,542.16

871

0.6

790

92.8

95.9 February 22, 2007

Residence-35

Esty Maison TENJINHIGASHI I

Susaki-machi, Hakata-ku, Fukuoka-shi, Fukuoka

239.18

1,158.70

445

0.3

370

95.0

100.0 January 31, 2007

46

List of Properties Owned at End of Period (2)Appraisal
Value at
End ofFiscalPeriod(Million yen)

Acquisition Price
Location

Site Area(m2)

Total Floor
Area
(m2)

Property No.

Property Name

Residence-36

Esty Maison TENJINHIGASHI II

Susaki-machi, Hakata-ku, Fukuoka-shi, Fukuoka

514.892,108.69840

0.6

Residence-37

Esty Maison SHIJONISHINOTOIN

Myodenji-cho, Shijo-sagaru, Nishinotoin-dori, Shimogyoku, Kyoto-shi, Kyoto

400.593,374.74

1,420

Residence-39

Esty Maison HIGASHISHINAGAWA

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,028.92

3,338.12

Residence-40

Esty Maison HACHIOJIMINAMINO

Nishikatakura, Hachioji-shi, Tokyo

1,134.50

2,243.06

Residence-41

Esty Maison NISHINAKAJIMA

Higashinakajima, Higashiyodogawa-ku, Osaka-shi,
Osaka

969.02

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

Itabashi, Itabashi-ku, Tokyo

Residence-43

Esty Maison MUSASHIKOYAMA (Note 5)

Residence-44

Esty Maison SENDAGI (Note 5)

Residence-45

Price(Million yen)

Ratio
(%)

Occupancy Rate (%)
Completion Date

As of Sep.
30, 2013

As of Mar.
31, 2014

687

97.5

100.0

May 23, 2007

0.9

1,050

96.7

97.6

April 8, 2008

2,610

1.7

2,270

96.4

96.4

May 23, 2008

1,000

0.7

957

93.0

91.9

March 6, 2007

3,947.24

2,250

1.5

1,920

96.2

96.1

April 18, 2007

731.71

4,322.19

2,700

1.8

2,380

89.5

100.0

April 22, 2007

Ebara, Shinagawa-ku, Tokyo

512.62

1,616.87

1,012

0.7

964

96.1

94.8

November 5, 2007

Sendagi, Bunkyo-ku, Tokyo

250.44

1,239.10

757

0.5

652

93.2

100.0

January 9, 2008

Esty Maison YOTSUYASAKAMACHI (Note 5)

Sakamachi, Shinjuku-ku, Tokyo

905.083,675.01

2,300

1.5

1,850

94.4

92.8

March 29, 2008

Residence-46

Esty Maison HAKATAHIGASHI

Yoshizuka, Hakata-ku, Fukuoka-shi, Fukuoka

4,590.91

9,465.09

2,250

1.5

2,270

96.8

97.9

November 21, 2007

Residence-47

Esty Maison KAMIGOFUKUKamigofukumachi, Hakata-ku, Fukuoka-shi, Fukuoka

593.552,523.71

900

0.6

803

97.3

89.7

March 14, 2008

Residence-48

Esty Maison SANGENJAYASangenjaya, Setagaya-ku, Tokyo

153.83954.94

871

0.6

806

91.7

88.8

January 22, 2008

Residence-50

Prime Maison MUSASHINONOMORI

Josuihoncho, Kodaira-shi, Tokyo

5,116.62

4,412.42

1,560

1.0

1,750

91.7

98.7

December 19, 2007

Residence-51

Prime Maison HIGASHISAKURA

Higashisakura, Higashi-ku, Nagoya-shi, Aichi

846.053,517.62

1,140

0.8

1,310

98.7

93.6

February 15, 2008

Residence-52

Prime Maison KAYABAKOEN

Kayaba, Chikusa-ku, Nagoya-shi, Aichi

1,129.02

2,301.42

640

0.4

721

96.3

100.0

November 7, 2006

Residence-53

Esty Maison SANGENJAYA II

Shimouma, Setagaya-ku, Tokyo

473.85

1,006.89

714

0.5

794

100.0

97.0

January 28, 2008

Residence-54

Esty Maison ITABASHI C6Oyama-higashi-cho, Itabashi-ku, Tokyo

773.485,249.34

2,260

1.5

2,300

94.3

93.3

March 12, 2008

Residence-55

MAST HAKATA (Note 6)

Hakata Ekimae, Hakata-ku, Fukuoka-shi, Fukuoka

2,457.01

11,621.67

1,920

1.3

2,230

100.0

100.0

January 15, 2005

Residence-56

Esty Maison KINSHICHO

Kinshi, Sumida-ku, Tokyo

338.57

1,718.10

1,050

0.7

1,150

97.3

97.3

September 6, 2006

Residence-57

Esty Maison MUSASHIKOGANEI

Honcho, Koganei-shi, Tokyo

520.252,676.36

1,450

1.0

1,610

98.1

93.2

February 2, 2005

Residence-58

Prime Maison GOKISO

Ayuchitori, Showa-ku, Nagoya-shi, Aichi

1,429.67

4,691.72

1,640

1.1

1,740

95.2

96.9

October 28, 2008

Residence-59

Prime Maison YUHIGAOKA

Ueshio, Tennoji-ku, Osaka-shi, Osaka

547.152,336.49

810

0.5

847

95.9

92.8

February 16, 2007

Residence-60

Prime Maison KITATANABE

Kitatanabe, Higashisumiyoshi-ku, Osaka-shi, Osaka

640.92

2,112.46

540

0.4

547

92.0

100.0

June 13, 2006

Residence-61

Prime Maison MOMOCHIHAMA

Momochihama, Sawara-ku Fukuoka-shi, Fukuoka

4,069.42

8,945.61

1,810

1.2

1,930

100.0

100.0

February 29, 1996

Residence-62

Esty Maison AKIHABARA

Ueno, Taito-ku, Tokyo

458.322,821.47

1,560

1.0

1,700

93.7

97.5

February 24, 2006

Residence-63

Esty Maison SASAZUKA

Sasazuka, Shibuya-ku, Tokyo

909.33

4,263.10

2,830

1.9

2,950

94.6

99.0

September 7, 2004

Residence-64

Prime Maison GINZA EAST

Tsukiji, Chuo-ku, Tokyo

969.108,724.48

5,205

3.4

5,410

92.5

95.0

February 28, 2006

Residence-65

Prime Maison TAKAMI

Takami, Chikusa-ku, Nagoya-shi, Aichi

1,129.17

2,354.34

905

0.6

948

96.4

85.9

August 27, 2008

Residence-66

Prime Maison YADAMINAMI

Yadaminami, Higashi-ku, Nagoya-shi, Aichi

1,148.53

2,430.23

715

0.5

748

91.5

92.3

July 18, 2007

Residence-67

Prime Maison TERIHA

Kashiiteriha, Higashi-ku, Fukuoka-Shi, Fukuoka

4,130.59

7,953.60

1,110

0.7

1,200

100.0

100.0

August 31, 2005

47

List of Properties Owned at End of Period (3)Appraisal
Value at
End ofFiscalPeriod(Million yen)

Acquisition Price
Property No.

Property Name

Location

Site Area(m2)

Total Floor
Area
(m2)

Price
(Million yen)

Ratio
(%)

Occupancy Rate (%)

As of Sep.
30, 2013

As of Mar.
31, 2014

Completion Date

Residence-68

Esty Maison HIGASHISHIRAKABE

Yoshino, Higashi-ku, Nagoya-shi, Aichi

1,959.76

4,232.39

1,350

0.9

1,420

100.0

100.0

February 27, 2006

Residence-69

Esty Maison SENGOKU

Sengoku, Bunkyo-ku, Tokyo

1,002.14

2,068.21

1,075

0.7

1,180

95.1

97.3

August 6, 2009

Residence-70

Esty Maison DAIZAWA

Daizawa, Setagaya-ku, Tokyo

1,901.36

2,948.98

1,870

1.2

1,960

97.8

100.0

February 18, 2010

Residence-71

Esty Maison TOGOSHI

Togoshi, Shinagawa-ku, Tokyo

679.82

2,545.90

1,370

0.9

1,490

96.8

96.9

June 25, 2009

Residence-72

Esty Maison KAWARAMACHI

Kawaramachi, Chuo-ku, Osaka-shi, Osaka

655.894,580.48

1,640

1.1

1,770

94.2

94.3

October 17, 2006

Residence-73

Esty Maison NISHITENMA

Nishitenma, Kita-ku, Osaka-shi, Osaka

Residence-74

Esty Maison SHIROKANEDAI

Kamiosaki, Shinagawa-ku, Tokyo

Residence-75

Esty Maison HIGASHISHINJUKUResidence-76

Esty Maison MOTOAZABUResidence-77

519.65

4,514.05

1,440

0.9

1,570

92.6

93.9

November 30, 2007

1,279.67

2,797.66

1,900

1.3

2,130

92.3

92.4

September 16, 2003

Shinjuku, Shinjuku-ku, Tokyo

704.82

2,227.87

1,370

0.9

1,490

95.5

96.7

April 17, 2009

Motoazabum Minato-ku, Tokyo

755.991,699.44

1,170

0.8

1,280

87.5

100.0

November 9, 2009

Esty Maison TORITSUDAIGAKU

Tairamachi, Meguro-ku, Tokyo

766.84

1,399.75

729

0.5

784

89.6

100.0

February 23, 2009

Residence-78

Esty Maison MUSASHIKOYAMA II

Koyama, Shinagawa-ku, Tokyo

609.81

1,436.58

844

0.6

901

97.4

97.3

May 25, 2009

Residence-79

Esty Maison NAKANO

Chuo, Nakano-ku, Tokyo

687.472,608.04

1,540

1.0

1,650

96.6

94.8

June 24, 2009

Residence-80

Esty Maison SHINNAKANO

Honcho, Nakano-ku, Tokyo

747.64

1,508.07

847

0.6

906

97.8

95.7

October 22, 2009

Residence-81

Esty Maison NAKANOFUJIMICHO

Yayoicho, Nakano-ku, Tokyo

907.66

1,531.56

863

0.6

934

84.6

97.7

February 16, 2009

Residence-82

Esty Maison TETSUGAKUDO

Matsugaoka, Nakano-ku, Tokyo

686.93

1,858.00

954

0.6

1,090

97.9

100.0

October 21, 2009

Residence-83

Esty Maison KOENJI

Koenjiminami, Suginami-ku, Tokyo

1,100.15

1,977.24

958

0.6

1,070

98.5

95.1

March 10, 2009

Residence-84

Esty Maison OSHIAGE

Narihira, Sumida-ku, Tokyo

1,134.70

4,344.84

1,950

1.3

2,160

96.8

96.9

April 23, 2010

Residence-85

Esty Maison AKABANE

Akabane, Kita-ku, Tokyo

1,157.02

5,675.18

2,730

1.8

2,900

94.1

97.6

November 25, 2009

Residence-86

Esty Maison OJI

Oji, Kita-ku, Tokyo

518.872,939.76

1,380

0.9

1,450

95.5

96.6

July 6, 2010

Residence-87

Prime Maison WASEDA

Waseda Tsurumaki-cho, Shinjuku-ku, Tokyo

358.54

1,914.93

1,280

0.8

1,370

-

96.8

November 8, 2012

Residence-88

Prime Maison HATCHOBORI

Hatchobori, Chuo-ku, Tokyo

302.07

1,901.58

1,160

0.8

1,230

-

93.8

November 16, 2012

Residence-89

Prime Maison JINBOCHO

Kandajinbo-cho, Chiyoda-ku, Tokyo

389.482,341.30

1,640

1.1

1,670

-

96.4

March 1, 2013

Residence-90

Prime Maison GOTENYAMA EAST

Kitashinagawa, Shinagawa-ku, Tokyo

2,167.60

3,727.89

2,120

1.4

2,420

-

95.7

January 18, 2011

Residence-91

MAST LIFE AKIHABARA

Kanda Sakumagashi, Chiyoda-ku, Tokyo

151.48939.79

480

0.3

497

-

100.0

October 3, 2006

Residence-92

Esty Maison AOI

Aoi, Higashi-ku, Nagoya-shi, Aichi

906.67

5,107.47

2,160

1.4

2,230

-

88.7

October 3, 2007

Residence-93

Esty Maison YAKUIN

February 2, 2006

Hirao, Chuo-ku, Fukuoka-shi, Fukuoka

Residence Subtotal

1,342.00

5,590.13

2,008

1.3

2,140

-

92.2

82,187.84

282,183.67

134,20788.4

134,874

96.1

96.6

48

List of Properties Owned at End of Period (4)Appraisal
Value at
End ofFiscalPeriod(Million yen)

Acquisition Price
Property No.

Property Name

Location

Site Area(m2)

Total Floor
Area (m2)

73,937.28

11,229.79

3,820

2.5

Price
(Million yen)

Ratio
(%)

Occupancy Rate (%)
Completion Date

As of Sep.
30, 2013

As of Mar.
31, 2014

2,224

100.0

100.0

(Note 7)
May 20, 2005

Retail-1

HAMAMATSU Plaza (Note 7)

Kaminishi-cho, Higashi-ku, Hamamatsu-shi, Shizuoka,
etc.

Retail-2

b-town JINGUMAE II

Jingumae, Shibuya-ku, Tokyo

283.83499.67

1,043

0.7

939

100.0

100.0

Retail-3

RINKU HAGURAZAKI Plaza (Note 8)

Tajiri-cho, Sennan-gun, Osaka, etc.

53,231.66

-

4,697

3.1

4,960

100.0

100.0

－

Retail-4

b-town MINAMIAOYAMAMinamiaoyama, Minato-ku, Tokyo

385.32797.63

1,530

1.0

1,120

100.0

100.0

February 28, 2006

Retail-5

KOJIMA NEW KAMIFUKUOKATEN

Kamifukuoka, Fujimino-shi, Saitama

4,877.90

3,413.40

1,300

0.9

1,290

100.0

100.0

October 14, 1996

Retail-7

b-toss IKEBUKURO

Nishi-Ikebukuro, Toshima-ku, Tokyo

223.381,474.21

1,980

1.3

1,610

77.5

88.8

November 12, 2005

Retail-8

Joy Square YUGAWARA

Chuo, Yugawaramachi, Ashigarashimo-gun, Kanagawa

5,425.13

6,326.53

1,810

1.2

1,530

100.0

100.0

September 22, 2006

23,304.57

6,283.76

1,355(Note 9)

0.9

1,190

100.0

100.0

(Note 9)Retail Subtotal

161,669.07

30,024.99

17,536

11.6

14,863

99.6

99.8

Portfolio Total

243,856.91

312,208.66

151,744100.0

149,737

97.1

97.5

Retail-9

Bell Plaza Shopping Center

Nakamaruko, Ueda-shi, Nagano

Owned as of March 31, 2014 (end of 17th fiscal period)
Acquired on May 1, 2014 (18th fiscal period)
Owned as of the date of this document (May 15, 2014)

95 properties

151,744 million yen

4 properties

19,355 million yen

99 properties

171,099 million yen

Notes: 1. Based on information as of March 31, 2014. Occupancy rates are rounded to the nearest first decimal place. Also, the occupancy rates of the “Residence subtotal” and “Portfolio total” as of September 30, 2013 include the figure for Esty
Maison SENDAGAYA sold on February 28, 2014.
2. Concerning acquisition prices, amounts of less than one million yen are rounded down, and percentages indicate the portion of the portfolio’s total acquisition price for properties owned and are rounded to the nearest first decimal place.
3. The listed site area, total floor area figures and completion dates are based on indications given in the register.
4. The appraisal value at end of period is the amount appraised based on an appraisal by a real estate appraiser rounded down to the nearest million yen.
5. The ratio of site rights (co-ownership rights) for Esty Maison GOTANDA, Esty Maison MUSASHIKOYAMA, Esty Maison SENDAGI and Esty Maison YOTSUYASAKAMACHI are 387,036/426,933, 117,678/127,609, 89,730/103,842 and245,317/329,739, respectively. However, “Site Area” indicates the total land area of the real estate in trust, while “Total Floor Area” indicates the floor area of the entire building. The exclusive portions of the total floor area that theInvestment Corporation has acquired are 3,637.18m2, 1,148.58m2, 867.27m2 and 2,253.07m2, respectively.
6. MAST HAKATA is a leasehold property with a general fixed-term land leasehold of a 50 year lease period which began on December 1, 2002, with the Urban Renaissance Agency as the land owner. As such, its “site area” is that which isindicated in the land leasehold agreement.
7. Hamamatsu Plaza is a commercial complex divided into the Hamamatsu Plaza East area and the Hamamatsu Plaza West area, comprises a total of seven buildings, with five buildings located in the Hamamatsu Plaza East area (the ItoYokado building, the Akachan Honpo building, the Xebio building, the Hamapla & Frespo building, and a management building) and two buildings located in the Hamamatsu Plaza West area (the Hamamatsu West building and theHamamatsu Plaza Sports building (Zexis)). The Investment Corporation acquired trust beneficiary interests in real estate for these other than the Hamapla & Frespo building and the building of the Hamamatsu Plaza Sports building (Zexis)on July 28, 2005 and started operations, but a portion was assigned on March 30, 2012 and September 30, 2013. As of September 30, 2013, the Investment Corporation holds only a 49% quasi-co-ownership interest in the real estate
trust beneficial interest of Hamamatsu Plaza East excluding the Ito-Yokado building and its site (hereafter, the “Hamamatsu Plaza East Xebio Building and Other Portions”). However, for the “site area” and “total floor area,” those for theentire Hamamatsu Plaza East Xebio Building and Other Portions are indicated. In addition, the HAMAPLA Frespo Building is not included in the “total floor space” because only the land is owned and leased (the buildings on it are ownedby the tenants). The “acquisition price” and “appraisal value at end of period” are for the 49% quasi-co-ownership interest of the Hamamatsu Plaza East Xebio Building and Other Portions, and do not include the assigned portion. With
regard to “completion date” the management building was completed on November 7, 2000, and Akachan Honpo Building and XEBIO Building were completed on November 9, 2000. The “completion date” of HAMAPLA Frespo Building is
not indicated, however, because the buildings on the land are owned by the tenants.
8. As for Rinku Hagurazaki Plaza, its “total floor area” and “completion date” are not indicated because only the land is owned and leased (the buildings on it are owned by the tenants).
9. With regard to Bell Plaza Shopping Center acquired in the fiscal period ended March 31, 2008, the former waterway on site, adjacent signboards and the site itself were additionally acquired at a total of ¥1million during the fiscal period
ended September 30, 2009. Also, the building additionally built on the site was additionally acquired on June 29, 2012 for ¥18 million. Bell-Plaza Shopping Center is commercial complex, with the center building and shop building
completed on November 30, 1992, the restaurant building completed on July 12, 2006 and the separate crystal plaza building completed on June 26, 2012.

49

List of Fiscal Period-End Appraisal Values (1)Fiscal period-end appraisal value(million yen)
Property No.

Property Name
As of Sep. 30,
2013

As of Mar. 31,
2014

Direct capitalization rate (%)
Change(million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Sep. 30,
2013

As of Mar. 31,
2014

As of Sep. 30,
2013

As of Mar. 31,
2014

As of Sep. 30,
2013

As of Mar. 31,
2014

AcquisitionPrice(million yen)

Balance sheet
amount(million yen)

Residence-1

Esty Maison GINZA

5,530

5,680

150

4.7

4.6

4.9

4.8

4.9

4.8

5,290

4,867

Residence-3

Esty Maison AZABUNAGASAKA

1,560

1,560

-

4.8

4.8

4.9

4.9

5.0

5.0

1,730

1,658

Residence-4

Esty Maison EBISU II

1,750

1,790

40

4.9

4.8

5.0

4.9

5.1

5.0

1,960

1,859

Residence-5

Esty Maison EBISU

759

775

16

4.7

4.6

4.8

4.7

4.9

4.8

700

657

Residence-6

Esty Maison KANDA

1,330

1,360

30

4.8

4.8

4.9

4.9

5.0

5.0

1,360

1,255

Residence-7

Esty Maison SENDAGAYA

529

-

-

5.0

-

5.1

-

5.2

-

-

-

Residence-8

Esty Maison KITASHINJUKU

1,410

1,440

30

5.0

4.9

5.0

4.9

5.2

5.1

1,290

1,203

Residence-10

Esty Maison ASAKUSAKOMAGATA

1,880

1,940

60

5.0

4.9

5.0

4.9

5.2

5.1

1,870

1,703

Residence-11

Esty Maison MACHIDA

1,400

1,420

20

5.5

5.5

5.4

5.4

5.7

5.7

1,360

1,151

Residence-12

Esty Maison KAWASAKI

2,240

2,280

40

5.2

5.1

5.2

5.1

5.4

5.3

2,130

1,905

Residence-13

Esty Maison IMAIKE

197

192

-5

6.4

6.3

5.8

5.7

6.6

6.5

300

272

Residence-14

Esty Maison SHINKAWASAKI

1,070

1,090

20

5.8

5.7

4.5

4.5

6.1

5.9

1,018

947

Residence-15

Esty Maison YOKOHAMA

1,980

1,980

-

5.3

5.2

5.1

5.0

5.5

5.4

2,090

1,977

Residence-16

Esty Maison KAMEIDO

1,360

1,380

20

5.3

5.2

5.1

5.0

5.5

5.4

1,650

1,487

Residence-17

Esty Maison MEGURO

953

974

21

4.9

4.8

4.7

4.6

5.1

5.0

887

821

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

1,110

1,110

-

5.7

5.6

5.6

5.5

5.8

5.7

1,348

1,208

Residence-19

Esty Maison SUGAMO

1,420

1,450

30

4.9

4.8

4.6

4.6

5.2

5.0

1,510

1,495

Residence-20

Esty Maison KYOBASHI

2,670

2,700

30

5.5

5.4

5.4

5.3

5.6

5.5

2,774

2,456

Residence-21

Esty Maison MEGUROHONCHO

995

996

1

5.0

4.9

4.8

4.7

5.2

5.1

1,220

1,148

Residence-22

Esty Maison HAKURAKU

825

837

12

5.4

5.3

5.2

5.1

5.6

5.5

844

754

Residence-23

Esty Maison MINAMIHORIE

963

982

19

5.4

5.3

5.1

5.1

5.7

5.5

1,055

985

Residence-24

Esty Maison GOTANDA

2,670

2,720

50

5.2

5.1

4.9

4.8

5.4

5.3

3,043

2,839

Residence-25

Esty Maison OISENDAIZAKA

2,370

2,420

50

5.0

4.9

4.8

4.7

5.2

5.1

2,440

2,292

Residence-26

Esty Maison SHINAGAWA SEASIDE

2,010

2,050

40

4.9

4.8

4.6

4.6

5.2

5.0

2,200

2,050

Residence-27

Esty Maison MINAMIAZABU

1,150

1,180

30

4.6

4.5

4.3

4.3

4.9

4.7

1,300

1,231

Residence-28

Esty Maison JYOUTOU

926

930

4

5.8

5.7

5.6

5.5

6.0

5.9

1,075

1,014

Residence-29

Esty Maison TSUKAMOTO

1,060

1,060

-

5.8

5.7

5.6

5.5

6.0

5.9

1,250

1,161

Residence-30

Esty Maison KAWASAKI II

1,900

1,940

40

5.1

5.0

4.8

4.8

5.4

5.2

1,900

1,785

Residence-31

Esty Maison AZABUJUBAN

2,360

2,410

50

4.6

4.5

4.3

4.3

4.9

4.7

2,700

2,641

Residence-33

Esty Maison ITABASHIHONCHO

878

882

4

5.0

4.9

4.7

4.7

5.3

5.1

1,000

945

Residence-34

Esty Maison OIZUMIGAKUEN

774

790

16

5.1

5.0

4.8

4.8

5.4

5.2

871

822

50

List of Fiscal Period-End Appraisal Values (2)Fiscal period-end appraisal value(million yen)
Property No.

Property Name
As of Sep. 30,
2013

As of Mar. 31,
2014

364

370

Direct capitalization rate (%)
Change(million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Sep. 30,
2013

As of Mar. 31,
2014

As of Sep. 30,
2013

As of Mar. 31,
2014

As of Sep. 30,
2013

As of Mar. 31,
2014

6

5.9

5.8

5.7

5.6

6.1

6.0

AcquisitionPrice(million yen)
445

Balance sheet
amount(million yen)

Residence-35

Esty Maison TENJINHIGASHI I

407

Residence-36

Esty Maison TENJINHIGASHI II

674

687

13

5.9

5.8

5.7

5.6

6.1

6.0

840

765

Residence-37

Esty Maison SHIJONISHINOTOIN

1,040

1,050

10

5.7

5.6

5.5

5.4

5.9

5.8

1,420

1,339

Residence-39

Esty Maison HIGASHISHINAGAWA

2,250

2,270

20

5.1

5.0

4.9

4.8

5.3

5.2

2,610

2,528

Residence-40

Esty Maison HACHIOJIMINAMINO

946

957

11

5.7

5.6

5.6

5.5

5.8

5.7

1,000

928

Residence-41

Esty Maison NISHINAKAJIMA

1,870

1,920

50

5.7

5.6

5.5

5.4

5.9

5.8

2,250

2,043

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

2,350

2,380

30

5.0

4.9

4.7

4.7

5.3

5.1

2,700

2,569

Residence-43

Esty Maison MUSASHIKOYAMA

946

964

18

5.0

4.9

4.7

4.7

5.3

5.1

1,012

986

Residence-44

Esty Maison SENDAGI

641

652

11

5.0

4.9

4.7

4.7

5.3

5.1

757

741

Residence-45

Esty Maison YOTSUYASAKAMACHI

1,820

1,850

30

4.9

4.8

4.6

4.6

5.2

5.0

2,300

2,268

Residence-46

Esty Maison HAKATAHIGASHI

2,240

2,270

30

5.8

5.7

5.8

5.7

5.9

5.8

2,250

2,130

Residence-47

Esty Maison KAMIGOFUKU

790

803

13

5.7

5.6

5.7

5.6

5.8

5.7

900

857

Residence-48

Esty Maison SANGENJAYA

789

806

17

4.9

4.8

5.0

4.9

5.1

5.0

871

868

Residence-50

Prime Maison MUSASHINONOMORI

1,750

1,750

-

5.6

5.5

5.5

5.4

5.8

5.7

1,560

1,537

Residence-51

Prime Maison HIGASHISAKURA

1,290

1,310

20

5.6

5.5

5.5

5.4

5.8

5.7

1,140

1,105

Residence-52

Prime Maison KAYABAKOEN

707

721

14

5.8

5.7

5.7

5.6

6.0

5.9

640

628

Residence-53

Esty Maison SANGENJAYA II

771

794

23

5.0

4.9

5.1

5.0

5.2

5.1

714

702

Residence-54

Esty Maison ITABASHI C6

2,300

2,300

-

5.1

5.0

4.9

4.8

5.3

5.2

2,260

2,224

Residence-55

MAST HAKATA

2,150

2,230

80

5.9

5.7

5.4

5.2

6.1

5.9

1,920

1,929

Residence-56

Esty Maison KINSHICHO

1,150

1,150

-

5.0

5.0

4.7

4.7

5.2

5.2

1,050

1,089

Residence-57

Esty Maison MUSASHIKOGANEI

1,590

1,610

20

5.1

5.0

5.2

5.1

5.3

5.2

1,450

1,500

Residence-58

Prime Maison GOKISO

1,710

1,740

30

5.6

5.5

5.6

5.5

5.8

5.7

1,640

1,632

Residence-59

Prime Maison YUHIGAOKA

844

847

3

5.5

5.4

5.3

5.2

5.7

5.6

810

805

Residence-60

Prime Maison KITATANABE

543

547

4

5.8

5.7

5.6

5.5

6.0

5.9

540

538

Residence-61

Prime Maison MOMOCHIHAMA

1,890

1,930

40

5.8

5.7

5.4
(Note 4)

5.3
(Note 4)

6.0

5.9

1,810

1,826

Residence-62

Esty Maison AKIHABARA

1,700

1,700

-

4.9

4.9

4.6

4.6

5.1

5.1

1,560

1,584

Residence-63

Esty Maison SASAZUKA

2,910

2,950

40

5.0

4.9

4.8

4.7

5.2

5.1

2,830

2,854

Residence-64

Prime Maison GINZA EAST

5,370

5,410

40

4.7

4.7

4.4

4.4

4.9

4.9

5,205

5,207

Residence-65

Prime Maison TAKAMI

945

948

3

5.4

5.3

5.5

5.4

5.6

5.5

905

909

Residence-66

Prime Maison YADAMINAMI

740

748

8

5.8

5.7

5.7

5.6

6.0

5.9

715

719

51

List of Fiscal Period-End Appraisal Values (3)Fiscal period-end appraisal value(million yen)
Property No.

Residence-67

Property Name

Prime Maison TERIHA

As of Sep. 30,
2013

As of Mar. 31,
2014

1,180

1,200

Direct capitalization rate (%)
Change(million yen)

20

Discount rate (%)

Terminal capitalization rate (%)

AcquisitionPrice(million yen)

Balance sheet
amount(million yen)

As of Sep. 30,
2013

As of Mar. 31,
2014

As of Sep. 30,
2013

As of Mar. 31,
2014

As of Sep. 30,
2013

As of Mar. 31,
2014

6.0

5.9

5.8

5.7

6.2

6.1

1,110

1,116

5.4
(Note 4)

5.9

5.8

1,350

1,353

Residence-68

Esty Maison HIGASHISHIRAKABE

1,400

1,420

20

5.7

5.6

5.5
(Note 4)

Residence-69

Esty Maison SENGOKU

1,150

1,180

30

4.8

4.7

4.6

4.5

5.0

4.9

1,075

1,117

Residence-70

Esty Maison DAIZAWA

1,910

1,960

50

4.8

4.7

4.6

4.5

5.0

4.9

1,870

1,937

Residence-71

Esty Maison TOGOSHI

1,450

1,490

40

4.9

4.8

5.0

4.9

5.1

5.0

1,370

1,422

Residence-72

Esty Maison KAWARAMACHI

1,760

1,770

10

5.4

5.3

5.5

5.4

5.6

5.5

1,640

1,662

Residence-73

Esty Maison NISHITENMA

1,550

1,570

20

5.4

5.3

5.5

5.4

5.6

5.5

1,440

1,464

Residence-74

Esty Maison SHIROKANEDAI

2,130

2,130

-

4.9

4.8

4.7

4.6

5.1

5.0

1,900

1,987

Residence-75

Esty Maison HIGASHISHINJUKU

1,450

1,490

40

4.8

4.7

4.9

4.8

5.0

4.9

1,370

1,417

Residence-76

Esty Maison MOTOAZABU

1,230

1,280

50

4.7

4.6

4.8

4.7

4.9

4.8

1,170

1,211

Residence-77

Esty Maison TORITSUDAIGAKU

783

784

1

4.8

4.7

4.9

4.8

5.0

4.9

729

756

Residence-78

Esty Maison MUSASHIKOYAMA II

Residence-79

Esty Maison NAKANO

Residence-80

Esty Maison SHINNAKANO

Residence-81

Esty Maison NAKANOFUJIMICHO

Residence-82

Esty Maison TETSUGAKUDO

Residence-83

Esty Maison KOENJI

Residence-84

Esty Maison OSHIAGE

Residence-85

884

901

17

4.9

4.8

4.7

4.6

5.1

5.0

844

876

1,620

1,650

30

4.9

4.8

4.7

4.6

5.1

5.0

1,540

1,597

896

906

10

5.0

4.9

4.8

4.7

5.2

5.1

847

878

916

934

18

4.9

4.8

5.0

4.9

5.1

5.0

863

895

1,070

1,090

20

5.0

4.9

4.8

4.7

5.2

5.1

954

989

1,050

1,070

20

4.8

4.7

4.9

4.8

5.0

4.9

958

993

2,120

2,160

40

5.1

5.0

5.1

5.0

5.3

5.2

1,950

2,023

Esty Maison AKABANE

2,830

2,900

70

5.1

5.0

4.9

4.8

5.3

5.2

2,730

2,834

Residence-86

Esty Maison OJI

1,430

1,450

20

5.1

5.0

4.9

4.8

5.3

5.2

1,380

1,434

Residence-87

Prime Maison WASEDA

-

1,370

-

-

4.8

-

4.6

-

5.0

1,280

1,310

Residence-88

Prime Maison HATCHOBORI

-

1,230

-

-

4.8

-

4.6

-

5.0

1,160

1,189

Residence-89

Prime Maison JINBOCHO

-

1,670

-

-

4.8

-

4.5

-

5.0

1,640

1,674

Residence-90

Prime Maison GOTENYAMA EAST

-

2,420

-

-

4.6

-

4.3

-

4.8

2,120

2,158

Residence-91

MAST LIFE AKIHABARA

-

497

-

-

4.9

-

4.7

-

5.1

480

496

Residence-92

Esty Maison AOI

-

2,230

-

-

5.5

-

5.5

-

5.7

2,160

2,234

Residence-93

Esty Maison YAKUIN
Residence Subtotal

-

2,140

-

-

5.3

-

5.4

-

5.5

2,008

2,144

121,918

134,874

1,928(Note 5)

5.2

5.1

5.1

5.0

5.4

5.3

134,207

131,01352

List of Fiscal Period-End Appraisal Values (4)Fiscal period-end appraisal value(million yen)
Property No.

Property Name
As of Sep. 30,
2013

As of Mar. 31,
2014

2,239

2,224

Direct capitalization rate (%)
Change(million yen)

Discount rate (%)

Terminal capitalization rate (%)

AcquisitionPrice(million yen)

Balance sheet
amount(million yen)

As of Sep. 30,
2013

As of Mar. 31,
2014

As of Sep. 30,
2013

As of Mar. 31,
2014

As of Sep. 30,
2013

As of Mar. 31,
2014

-14

6.6

6.6

6.3

6.3

6.7

6.7

3,820

3,663

Retail-1

HAMAMATSU Plaza (Note 6)

Retail-2

b-town JINGUMAE II

927

939

12

4.5

4.4

4.2

4.2

4.8

4.6

1,043

1,016

Retail-3

RINKU HAGURAZAKI Plaza (Note 7)

4,390

4,960

570

-

-

-

-

-

-

4,697

4,734

Retail-4

b-town MINAMIAOYAMA

1,140

1,120

-20

4.7

4.6

4.7

4.6

4.8

4.7

1,530

1,512

Retail-5

KOJIMA NEW KAMIFUKUOKATEN

1,190

1,290

100

6.5

6.4

6.2

6.2

6.8

6.6

1,300

1,257

Retail-7

b-toss IKEBUKURO

1,580

1,610

30

5.3

5.2

5.3

5.2

5.4

5.3

1,980

1,963

Retail-8

Joy Square YUGAWARA

1,520

1,530

10

6.4

6.4

6.3

6.3

6.6

6.6

1,810

1,705

Retail-9

Bell Plaza Shopping Center

1,190

1,190

-

6.3

6.3

6.2

6.2

6.4

6.4

1,355

1,382

14,176

14,863

687

5.8

5.7

5.6

5.6

5.9

5.8

17,536

17,235136,094

149,737

2,615(Note 5)

5.3

5.2

5.1

5.0

5.5

5.4

151,744

148,249

Retail Subtotal
Portfolio Total

Notes: 1. Amounts of less than one million yen are rounded down.
2. “Fiscal period-end appraisal value,” “Direct capitalization rate,” “Discount rate” and “Terminal capitalization rate” are the amount based on real estate appraisal or on real estate survey price found in real estate surveys while “Balance
sheet amount” is the amount recorded on the balance sheet as of March 31, 2014 for assets owned at the end of the fiscal peri od ended March 31, 2014 (17th fiscal period).
3. “Direct capitalization rate,” “Discount rate” and “Terminal capitalization rate” in the residence subtotal, retail subtotal and portfolio total are the simple averages of the figures for the owned properties and are rounded to the nearest firstdecimal place.
4. A master lease agreement and rent guarantee type lease agreement are concluded with Sekiwa Real Estate Kyushu, Ltd. with regard to Prime Maison MOMOCHIHAMA. In calculating the fiscal period-end appraisal value as of September
30, 2013, the property’s discount rate until the expiry of the contract is 5.4% and its discount rate after the expiry of the contract is 5.6%, while in calculating the fiscal period-end appraisal value as of March 31, 2014, the property’s
discount rate until the expiry of the contract is 5.3% and its discount rate after the expiry of the contract is 5.5%. Also, a master lease agreement and rent guarantee type lease agreement are concluded with Sekiwa Real Estate Chubu,Ltd. with regard to Esty Maison HIGASHISHIRAKABE. In calculating the fiscal period-end appraisal value as of September 30, 2013, the property’s discount rate until the expiry of the contract is 5.5% and its discount rate after the expiry of
the contract is 5.7%, while in calculating the fiscal period-end appraisal value as of March 31, 2014, the property’s discount rate until the expiry of the contract is 5.4% and its discount rate after the expiry of the contract is 5.6%.
Furthermore, for the sake of convenience, the above chart shows the discount rates until the expiry of the contracts.
5. The residence subtotal and portfolio total of the “Change” column indicate the aggregate amount of changes of properties owned as of the end of the fiscal period ended September 30, 2013 (the 16th FP) (not including the 1 property soldand 7 properties acquired during the fiscal period ended March 31, 2014 (the 17th FP)).
6. Hamamatsu Plaza is a commercial complex divided into the Hamamatsu Plaza East area and the Hamamatsu Plaza West area, comprises a total of seven buildings, with five buildings located in the Hamamatsu Plaza East area (the ItoYokado building, the Akachan Honpo building, the Xebio building, the Hamapla & Frespo building, and a management building) and two buildings located in the Hamamatsu Plaza West area (the Hamamatsu West building and theHamamatsu Plaza Sports building (Zexis)). The Investment Corporation acquired trust beneficiary interests in real estate for these other than the Hamapla & Frespo building and the building of the Hamamatsu Plaza Sports building (Zexis)on July 28, 2005 and started operations, but a portion was assigned on March 30, 2012 and September 30, 2013. As of September 30, 2013, the Investment Corporation holds only a 49% quasi-co-ownership interest in the real estate
trust beneficial interest of trust beneficiary interest in real estate for Hamamatsu Plaza East excluding the Ito-Yokado building and its site (hereafter, the “Hamamatsu Plaza East Xebio Building and Other Portions”). Consequently,“acquisition price” and “Fiscal period-end appraisal value” are for the 49% quasi-co-ownership interest of the Hamamatsu Plaza East Xebio Building and Other Portions and do not include the portion that was assigned.
7. As for RINKU HAGURAZAKI Plaza, “Direct capitalization rate,” “Discount rate” and “Terminal capitalization rate” are not indicated because only the land is owned and leased and its appraisal method differs from that of other acquired
assets. Please refer to the following table for the appraisal of the property.

Discount rate in the DCF method (%)
Property No.

Retail-3

Property NameRINKU HAGURAZAKI Plaza

As of Sep. 30, 2013(End of the 16th FP)

As of Mar. 31, 2014(End of the 17th FP)

5.0~6.1*

6.1~6.7**Three properties apply and each differ according to contract
conditions and such.

53

Overview of Interest-Bearing Debt (1)As of date of document■ Loans

Long-Term loans payable

Current portion of long-term loans payable

Short-Term loans
payableLenderMizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
SubtotalMizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Norinchukin Bank
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Resona Bank, Limited.
The Senshu Ikeda Bank, Ltd.
The Shizuoka Bank, Ltd.
The 77 Bank, Ltd.
Shinkin Central Bank
The Hiroshima Bank, Ltd.
Mizuho Bank, Ltd.
Subtotal
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Aozora Bank, Ltd.
Shinkin Central Bank
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Limited.
Development Bank of Japan Inc.
The Bank of Fukuoka, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Yamaguchi Bank, Ltd.

Drawdown Date

October 1, 2013

May 1, 2014

February 28, 2011

July 29, 2011

February 1, 2012

May 9, 2011

March 2, 2012

March 8, 2012

Balance as of date of document(Note 1)
¥1,100 million¥1,100 million¥1,100 million¥4,350 million¥4,350 million¥12,000 million¥4,954 million¥3,954 million¥600 million¥1,500 million¥500 million¥500 million¥950 million¥500 million¥500 million¥500 million¥500 million¥500 million¥700 million¥16,159 million¥2,000 million¥425 million¥425 million¥100 million¥100 million¥200 million¥200 million¥200 million¥100 million¥100 million¥300 million¥200 million¥1,200 million¥500 million¥400 million¥1,100 million¥1,300 million¥500 million

Interest Rate
(Note 2)

Fixed/Floating

Repayment Date

Use

Collateral

0.34636%

Floating

August 29, 2014

(Note 4)

Unsecured

0.34636%

Floating

February 27, 2015

(Note 4)

Unsecured1.43000%

Fixed

August 31, 2014

(Note 3)

Unsecured

1.15900%

Fixed(Note5)February 27, 2015

(Note 3)

Unsecured

0.99850%

Fixed(Note5)February 27, 2015

(Note 4)

Unsecured

1.57000%

Fixed

February 29, 2016

(Note 3)

Unsecured

1.18975%

Fixed(Note5)February 28, 2017

(Note 4)

Unsecured

1.19475%

Fixed(Note5)February 28, 2017

(Note 6)

Unsecured

54

Overview of Interest-Bearing Debt (2)Long-Term loans payable

Lender
The Norinchukin Bank
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Limited.
The 77 Bank, Ltd.
The Hiroshima Bank, Ltd.
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Aozora Bank, Ltd.
Shinkin Central Bank
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Limited.
Aozora Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Limited.
Aozora Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited

Drawdown Date

August 2, 2012

August 2, 2012

February 8, 2013

February 28, 2013

February 28, 2013

March 1, 2013

August 30, 2013

August 30, 2013

Balance as of date of document(Note 1)¥2,352 million¥176 million¥176 million¥941 million¥1,470 million¥1,470 million¥750 million¥2,250 million¥750 million¥750 million¥400 million¥500 million¥1,700 million¥2,142 million¥500 million¥500 million¥500 million¥100 million¥500 million¥500 million¥200 million¥200 million¥300 million¥400 million¥300 million¥200 million¥700 million¥500 million¥200 million¥1,000 million¥500 million¥200 million¥2,500 million¥600 million¥200 million¥500 million¥500 million¥200 million¥200 million¥1,100 million¥500 million

Interest Rate
(Note 2)

Fixed/Floating

Repayment Date

0.95750%

Fixed(Note5)

August 31, 2017

1.15475%

Fixed(Note5)February 28, 2019

0.89900%

Fixed(Note5)February 28, 20191.02225%

Fixed(Note5)February 28, 2020

0.75600%

Fixed(Note5)0.65475%

Use(Note 3)(Note 3)(Note 4)(Note 3)Collateral

Unsecured

Unsecured

Unsecured

Unsecured

February 28, 2018

(Note 3)

Fixed
(Note5)February 28, 2017

(Note 4)

Unsecured

1.17200%

Fixed(Note5)

August 31, 2020

(Note 3)

Unsecured

0.61182%

Floating

August 31, 2018

(Note 3)

Unsecured

Unsecured

55

Overview of Interest-Bearing Debt (3)Long-Term loans payable

LenderDrawdown Date

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Limited.
The Senshu Ikeda Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking Corporation
The Yamaguchi Bank, Ltd.
Resona Bank, Limited.
Mizuho Bank, Ltd
Sumitomo Mitsui Banking Corporation
The Shizuoka Bank, Ltd.
Shinkin Central Bank
The Bank of Fukuoka, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation

January 31, 2014

February 28, 2014

February 28, 2014

February 28, 2014

March 28, 2014

Balance as of date of document(Note 1)¥300 million¥300 million¥400 million¥800 million¥400 million¥980 million¥500 million¥1,500 million¥500 million¥800 million¥500 million¥400 million¥500 million¥500 million¥500 million¥500 million¥500 million¥500 million¥405 million¥1,145 million¥500 million¥500 million¥500 million¥300 million¥300 million¥52,809 million

Subtotal
Total loans¥80,968 million

Name

Date of issuance

Balance as of date of document(Note 1)First Series Unsecured Investment Corporation Bonds
Second Series Unsecured Investment Corporation Bonds
Third Series Unsecured Investment Corporation Bonds
Fourth Series Unsecured Investment Corporation Bonds

February 28, 2013
February 28, 2013
February 28, 2014
February 28, 2014

¥4,000 million¥2,000 million¥2,500 million¥3,000 million

Interest Rate
(Note 2)

Fixed/Floating

Repayment Date

1.17350%

Fixed(Note5)February 28, 2022

1.11000%

Fixed(Note5)February 28, 2022

0.95225%

Fixed(Note5)February 26, 2021

0.79614%

Fixed(Note5)0.97300%

Fixed(Note5)February 26, 2021

Interest Rate
(Note 2)

Fixed/Floating

0.63000%
1.00000%
0.37400%
1.06900%

Fixed
Fixed
Fixed
Fixed

Use

Collateral(Note 4)

Unsecured(Note 3)

Unsecured(Note 3)

Unsecured(Note 3)

Unsecured(Note 4)

Unsecured

Redemption Date

Use

Collateral

February 28, 2018
February 28, 2020
February 28, 2019
February 28, 2024

(Note 3)(Note 4)

Unsecured(Note 3)

Unsecured

February 28, 2020

■ Investment Corporation Bonds

Total Investment Corporation Bonds

Total interest-bearing debt

¥11,500 million¥92,468 million

Notes: 1. Amounts are rounded down to the nearest million yen.
2. Interest rates as of date of document are indicated.
3. Repayment funds for existing borrowings.
4. Acquisition funds for trust beneficiary interest in real estate.
5. Interest rate swap agreements are concluded in order to avoid the risk of rising interest rates, and the interest rates indicated are the rates fixed with the interest rate swap agreements.
6. Redemption funds for the Second Series Unsecured Investment Corporation Bonds issued in March 2007 (private placement limited to qualifi ed institutional investors).

56

Overview of Unitholders as of March 31, 2014
Major Unitholders

Diversification of Unitholders
Investment Units
Owned(units)Ownership ofInvestment Units
Outstanding (%)

Japan Trustee Services Bank, Ltd.
(Trust Account)

51,476

32.25

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

11,503

7.20

Sekisui House, Ltd.

7,800

4.88

Name / Company Name

Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)

6,920

4.33

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

4,653

2.91

THE FUJI FIRE AND MARINE INSURANCECOMPANY, LIMITED

4,126

2.58

DEUTSCHE BANK AG LONDON-PB NONTREATY CLIENTS 613

3,908

2.44

GK Spring Investors

2,600

1.62

Mizuho Trust & Banking Co., Ltd.

2,434

1.52

UNION BANCAIRE PRIVEE (EUROPE) SA
497200

2,371

1.48

97,791

61.27

Total

■The status of large holdings as determined by the large share holdings reports (including
Reports of Changes) submitted by May 9, 2014 is as follows.
nameSumitomo Mitsui
Trust Bank, Limited

Mizuho Trust &Banking Co., Ltd.

DIAM Co., Ltd.

Total units held

94,540 units

88,042 units

65,319 units

Total percentage ofOwnership

11.85%

9.68%

7.18%

Submission date

April 21, 2014

May 2, 2014

May 7, 2014

98 (1.30％)
208 (2.77％)
96 (1.28％)
Mar. 31, 2014
7,511unitholders

7,109 (94.65％)

107 (1.18％)
250 (2.76％)
108 (1.19％)
Sep. 30, 2013
9,052 unitholders

8,587 (94.86％)
67 (0.92％)
135 (1.86％)
107 (1.48％)

Mar. 31, 2013
7,246 unitholders

6,937 (95.74％)

0%

20%

40%

60%

104,356(65.38％)Mar. 31, 2014
159,605 units

90,687(56.82％)

Sep. 30, 2013
159,605 units

0%

20%

18,307(13.36％)

40%

100%

16,558 16,412 22,279(10.37％) (10.28％) (13.96％)

19,36021,881(12.13％) (13.71％)

72,889(53.18％)Mar. 31, 2013
137,070 units

80%

60%

22,719(16.57％)80%

27,677(17.34％)

23,155(16.89％)100%

57

Overview of Asset Management Company
Management Structure of the Asset Management Company
As of date of document
Corporate
Name

Sekisui House SI Asset Management, Ltd.
(Financial Instruments Business Operators Director of
Kanto Local Finance Bureau (Kinsho) Number 337)

Established

July 28, 2004

CapitalShareholders

Number of
officers andemployees

200 million yen

Sekisui House, Ltd. (75%)
Spring Investment Co., Ltd. (25%)

List of Officers
President

Osamu Minami

Vice President

Nobuyoshi Sato

Senior Managing
Director

Koji Sakamoto (IR & Financial Affairs Department, Real Estate
Investment Department and Management Department)

Director

Masaki Katsura (Real Estate Management Department)

Director (part-time)

Yoshiki Inazawa (Senior Manager, Accounting & Finance
Department, Sekisui House, Ltd.)

Auditor (part-time)

Naoki Kawamura (Manager, Legal Department, Sekisui House, Ltd.)33 (excluding part-time officers)

General Meetingof Shareholders

Organization
Chart

AuditorBoard of Directors
Compliance Committee

Investment Committee

Compliance Officer
President

Risk Management and Compliance Office

Real Estate Investment
Department

Asset Management
Department

IR & Financial Affairs
Department

Management
Department

58

Historical Investment Unit Price
Investment Unit Price and Trading Volume after Change of Sponsor(Yen)150,000

2,100

100,000

1,400

50,000700

Sekisui House SI Investment Corporation investment unit price (left axis)
TSE REIT Index (right axis)
0

0

Mar.
2010

Sep.
2010

Mar.
2011

Sep.
2011

Mar.
2012

Sep.
2012

Mar.
2013

Sep.
2013

Mar.
2014

（Units）

25,000

Trading volume

20,00015,00010,000
5,000
0
Mar.
2010

Sep.
2010

Mar.
2011

Sep.
2011

Mar.
2012

Sep.
2012

Mar.
2013

Sep.
2013

Mar.
2014

Note: As a five-for-one split of investment units was implemented on April 1, 2014, investment units have been traded at one-fifth the ex-rights unit price on and after March 27, 2014. In
consideration of the impact of the split, the above graph is based on actual figures of “Investment unit price” for March 27, 2014 and earlier being divided by five and actual figures of“Trading volume” being multiplied by five.
59

Memo

60

◇ This document is provided for information purposes only and is not a solicitation for investment, nor a recommendation or
invitation to make specific transactions. We caution readers to contact their securities companies with regard to the purchase ofinvestment units in Sekisui House SI Investment Corporation and to undertake investment decisions at their own discretion.
◇ This document is not a disclosure document or report based upon the Financial Instruments and Exchange Act, the Act on
Investment Trusts and Investment Corporations, public listing regulations of the Tokyo Stock Exchange or other related laws andregulations.
◇ Strategies, goals and forward-looking statements contained herein are based upon specific assumptions and judgments made asof the date of the document in accordance with information available to Sekisui House SI Investment Corporation at the time.
Information herein is subject to impact from risks, uncertainties, assumptions and other factors. Accordingly, strategies, goals andforecasts regarding future dates do not guarantee the Investment Corporation’s future performance, operating results or financial
position. Actual results may differ significantly from explicit or implicit statements made herein regarding future performance,
operating results, financial position or other conditions.
◇ While Sekisui House SI Investment Corporation has taken due care in the preparation of this document, it does not guarantee theaccuracy, completeness, rationality or fairness of its content. Readers are also cautioned that the contents of this document are
subject to change or removal without prior notice.
◇ Duplication and reproduction of the content contained herein without prior consent is prohibited.
◇ This English language document is an abridged translation of the Japanese language document issued on the same day and was
prepared solely for the convenience of, and reference by, overseas investors. Sekisui House SI Investment Corporation gives nowarranties as to its accuracy or completeness.

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