Business Results for the 24th Fiscal PeriodBusiness Results
for the 24th Fiscal Period from April 1, 2017 to September 30, 2017

November 16, 2017

This document is provided for information purposes only and is not a solicitation for investment, nor arecommendation or invitation to make specific transactions. We caution readers to contact their securities
companies with regard to the purchase of investment units in Sekisui House Residential Investment
Corporation and to undertake investment decisions at their own discretion.
This document is not a disclosure document or report under the Financial Instruments and Exchange Act, theAct on Investment Trusts and Investment Corporations, public listing regulations of the Tokyo Stock Exchange
or other related laws and regulations.
Strategies, goals and forward-looking statements contained herein are based upon specific assumptions andjudgments made as of the date of the document in accordance with information available to Sekisui House
Residential Investment Corporation at the time. Information herein is subject to impact from risks, uncertainties,
assumptions and other factors. Accordingly, strategies, goals and forward-looking statements 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 Residential Investment Corporation has taken due care in the preparation of thisdocument, it does not guarantee the accuracy, completeness, rationality or fairness of its content. Readers arealso 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.
The material containing the information required under Article 23(1) and (2) of the AIFMD is available at
http://www.shi-reit.co.jp/en_cms/ir/library.html

Asset Management Company: Sekisui House Asset Management, Ltd.
Registered by the Director of Kanto Local Finance Bureau, as a Financial Instruments Business Operator Registration (Kinsho) No. 337.
Member of the Investment Trusts Association, Japan

Contents
Ⅰ

Ⅳ

Summary of Business Results for the 24th FP,
Forecast of Future Management Status, and Current
Management Policy
Highlights
Business Results for the 24th FP: Comparison with Forecasts
Business Results for the 24th FP: Comparison with Previous
Fiscal Period
Forecast of Management Status for the 25th FP

Sustainability Policy

5
6
7

8
Forecast of Management Status for the 26th FP
9
Current Management Policy
10
Residential Properties Planned, Developed, or Owned by Sekisui 11
House Group
Status of the 24th FP-End Appraisal Value, etc.

Ⅱ12Management Status of Portfolio for the 24th FP

14
Summary of Residential Portfolio
15
Occupancy Ratio and NOI Yield
16
Residential Properties Occupancy Status by Investment Area
17
Residential Properties New / Renewed Contract Rent Trends
18
Status of Selected Management Data on Residential Properties 19
Measures to Improve Profitability of Residential Properties
20
Major Initiatives for Enhancing Leasing of Residential Properties 21
Measures to Maintain / Improve Asset Values of Residential
22

Ⅲ

23

Financial Activities in and after the 24th FP
Financial Activities for the 24th FP and Thereafter
Major Financial Indices Related to Financial Status

25
26

29

CSR and Environmental Activity Case Studies
30
Record of Acquisition of Environmental Certification from External 31
Agencies

Ⅴ

Appendix
Balance Sheet

Statement of Income and Retained Earnings
Statements of Cash Flows / Cash Distributions
Summary of Selected Financial Data
Portfolio Development Policy
Portfolio Map

Changes in Asset Size, LTV, and Cash Distribution

Properties
Present Status of HAMAMATSU Plaza

CSR and Environmental Activities

List of Properties Owned at End of Fiscal Period
List of Fiscal Period-End Estimated Values
Overview of Interest-Bearing Debt
Overview of Unitholders as of September 30, 2017
Change in Investment Unit Price and Trading Volume
Overview of Asset Management Company
Governance Structure of Asset Management Company

34
36
37
38
39
40
42
47
52
54
55
56
57

Ⅰ

Summary of Business Results forthe 24th FP, Forecast of FutureManagement Status, and Current
Management Policy

Highlights
After Sekisui House became the sole sponsor in March 2017, the Investment Corporation changed its corporatename to Sekisui House Residential Investment Corporation. The 24th FP was the first fiscal period following thename change, and a cash distribution per unit of ¥2,255 was achieved, exceeding the level in the previous period.
Corporate
nameSecurity code
SponsorAsset
Management
Company

Sekisui House Residential Investment Corporation(Abbreviation: SHI)
8973

Sekisui House Asset Management, Ltd.

March 2010
History

June 2014
March 2017
June 2017

Listed on the J-REIT market of the Tokyo Stock
Exchange REIT
Changed to collaborative sponsors system with
Sekisui House as the main sponsor
Limited investments to real estate-related assetsthat are mainly used as residences
Transitioned to structure with Sekisui House
as the sole sponsor
Changed the corporate name to Sekisui
House Residential Investment Corporation

Status of cash distribution per unit (Announced on November 15, 2017)¥ 2,255



Actual cash distribution for the 24th FPForecast of cash distribution for the 25th FP ¥



Total acquisition price¥ 206.9 billion

Sekisui House, Ltd.

July 2005

Asset size (As of the date of this document)

2,230
Forecast of cash distribution for the 26th FP ¥ 2,200

Total owned properties

113 properties

Management status (for the 24th FP)
Average occupancy ratio
during the FP

Average NOI yield(Entire portfolio)(Entire portfolio)

96.9%(Before depreciation)

5.0%

Financial status (for the 24th FP)
The FP-end total assets LTV

50.3%

Average borrowing cost rates
during the FP%

0.95

Status of credit rating (As of the date of this document)
Japan Credit Rating Agency,
Ltd.
(Stable)(JCR)

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

Cumulative internal
reserves of gains onsales from property
disposition

The 24th FP-End reserve for
reduction entry

AA-

A+

¥ 214 million
5

Business Results for the 24th FP : Comparison with Forecasts
Actual cash
distribution forthe 24th FP¥2,255
per unit

Comparison
with the 24th FP forecast+¥55 (+2.5%)

Forecast for the
24th FP

Results for the
24th FP

Difference¥6,700 million¥6,710 million¥10 million¥195 million¥205 million¥9 million¥6,896 million¥6,916 million¥19 million(Out of which, depreciation)¥3,303 million(¥1,601 million)¥3,298 million(¥1,602 million)-¥5 million(¥0 million)

Other ordinary expenses¥617 million¥616 million-¥1 million¥2,974 million¥3,001 million¥26 million

Non-operating revenue¥0 million¥30 million

Non-operating expenses¥540 million

Ordinary income
Net income

Major factors, etc.

•••

Increase in rent revenue, etc. (including common-service fee) : +¥10 million
Decrease in key money: -¥3 million / Increase in renewal fee : +¥1 million
Increase in other miscellaneous revenue : +¥10 million••

Increase in utilities expenses : +¥3 million
Decrease in repair expenses : -¥9 million¥30 million•¥537 million-¥3 million•

Receipt of settlement money from a lawsuit with a construction company ofdisposed property : +¥30 million
Decrease in borrowing cost : -¥3 million¥2,434 million¥2,494 million¥60 million¥2,432 million¥2,493 million¥60 million¥2,200¥2,255¥55

Number of properties

113 properties

113 properties‐

Total acquisition price¥206,943 million¥206,943 million

‐

96.8％

96.9％

0.1pt

96.6％
Almost the sameas the end of the
23rd FP (50.3%)

96.8％

0.2pt

50.3％

‐

Rent revenue
Other rent businessrevenue
Operating revenue
Expenses related to rent
business

Operating income

Cash distribution per unit

Assets undermanagement

Cash distributions increased due to an increase in non-operating revenue,
in addition to the fact that the average occupancy ratio during the fiscal
period of the entire portfolio exceeded the forecast by 0.1pt

Averageoccupancy
ratio during
the FP

Total
Residences
only

Period-end total assets LTV•

Total number of investment units issued and outstanding : 1,105,510 units (Nochange)•No property acquisitions or dispositions were made during the 24th FP•

Forecast occupancy ratios and actual occupancy ratios at end of each month
during the 24th FP are compared on an average basis•

Although total interest-bearing debt decreased compared to preconditions forforecasts during the 24th FP, there is no significant discrepancy

Note: Amounts of less than the indicated unit are rounded down, and the “Average occupancy ratio during the FP” and “Period-end total assets LTV” figures are rounded to the first decimal place. The same applies
hereafter.

6

Business Results for the 24th FP : Comparison with Previous Fiscal Period
Actual cash
distribution forthe 24th FP¥2,255
per unit
Results for the
23rd FP

Gains on sales of real estate property, etc. were absent and the extra
expense of property and other asset taxes, etc. for the properties acquiredin 2016 appeared, but cash distribution increased because 3 properties
acquired in the 23rd FP were in operation throughout the FP and nonoperating revenue increased

Comparison
with the 23rd FP results+¥21 (+0.9%)
Results for the
24th FP

Difference

Major factors, etc.

-¥13 million•••

Increase in rent revenue, etc. (including common-service fee) : +¥42 million
Decrease in key money : -¥7 million / Decrease in renewal fee : -¥20 million
Increase in other miscellaneous revenue : +¥13 million‐-¥32 million•

Absence of gains on sales of real estate property, etc. : -¥32 million¥6,919 million¥6,916 million-¥2 million(Out of which, depreciation)¥3,259 million(¥1,606 million)¥3,298 million(¥1,602 million)¥39 million(-¥4 million)

Other ordinary expenses¥599 million¥616 million¥17 million

•
•
•
•
•
•

Decrease in outsourcing expenses : -¥15 million
Increase in repair expenses : +¥9 million
Increase in property and other asset taxes, etc. : +¥50 million
Increase in asset management fees : +¥3 million
Increase in compensation paid : +¥5 million
Increase in expenses for the General Meeting of Unitholders : +¥8 million¥3,060 million¥3,001 million-¥58 million

Non-operating revenue¥0 million¥30 million¥29 million•

Non-operating expenses¥558 million¥537 million-¥21 million•

Receipt of settlement money from a lawsuit with a construction company ofdisposed properties : +¥30million
Decrease in borrowing cost : -¥16 million¥2,502 million¥2,501 million¥2,494 million¥2,493 million-¥7 million-¥8 million

Provision for reserve for
reduction entry¥31 million‐-¥31 million

Cash distribution per unit

¥2,234¥2,255¥21

Number of properties

113 properties

113 properties‐

Total acquisition price¥206,943 million¥206,943 million

97.1％
97.0％

96.9％
96.8％

‐
-0.2pt-0.2pt

50.3％

50.3％

‐

¥6,668 million¥6,710 million¥42 million

Other rent businessrevenue¥218 million¥205 million

Gain on sales of realestate property, etc.

¥32 million

Rent revenue

Operating revenue

Expenses related to rent
business

Operating income

Ordinary income

Assets undermanagement

Net income

Averageoccupancy
ratio during
the FP

Total
Residences
only

Period-end total assets LTV•

Total number of investment units issued and outstanding : 1,105,510 units (Nochange)•No property acquisitions or dispositions were made during the 24th FP•

Actual occupancy ratios at the end of each month during the 23rd FP and the24th FP were compared on an average basis•

Although total interest-bearing debt decreased compared to the previous
fiscal period, there are no significant discrepancies

7Forecast of Management Status for the 25th FP
Revisedforecast cash
distribution forthe 25th FP¥2,230
per unit

Revised from theinitial forecast of¥2,220Comparison
with the 24th FP results-¥25 (-1.1%)

Cash distributions are expected to exceed the initial forecast forthe 25th FP due to anticipated increases in rent businessincome following asset management, starting at the high level ofthe actual occupancy ratio of 97.1% at the end of the 24th FP
Reference

Results for the
24th FP

¥6,710 million

Rent revenue

Other rent businessrevenue¥205 million

Revised forecast
for the 25th FP

Difference¥6,728 million¥17 million•¥31 million••¥236 million

Major factors, etc.

•
Operating revenue
Expenses related to rent
business(Out of which, depreciation)

Other ordinary expenses
Operating income¥6,916 million¥6,965 million¥48 million¥3,298 million(¥1,602 million)¥616 million¥3,358 million(¥1,603 million)¥620 million¥60 million(¥0 million)¥3 million¥3,001 million¥2,986 million-¥15 million

Increase in rent revenue, etc. (including common-service fee) :+¥9 million
Increase in parking lot revenue : +¥9 million
Increase in key money: +¥4 million / Increase in renewal fee :+¥42 million
Decrease in other miscellaneous revenue : -¥13 million

Initial forecast for theon
25th FP Announced
May 12, 2017

¥6,707 million¥231 million¥6,938 million••

Increase in administration service fees : +¥30 million
Increase in repair expenses : +¥21 million

Absence of settlement money from a lawsuit with aconstruction company of disposed property : -¥30 million
Decrease in borrowing cost : -¥10 million¥3,333 million(¥1,601 million)¥616 million¥2,989 million

Non-operating revenue¥30 million¥0 million-¥30 million•

Non-operating expenses¥537 million¥519 million-¥18 million•

Ordinary income¥2,494 million¥2,467 million-¥27 million¥2,456 million

Net income¥2,493 million¥2,465 million-¥27 million¥2,454 million¥2,255¥2,230-¥25

Assets undermanagement

Cash distribution per unit•

Total number of investment units issued and outstanding :1,105,510 units (No change)¥0 million¥532 million¥2,220

Number of properties

113 properties

113 properties

Total acquisition price¥206,943 million¥206,943 million‐‐•

Assuming no new property acquisitions and dispositions

Total

96.9％

97.0％

0.1pt

•

96.8％

Residences
only

96.8％

96.9％

0.1pt

Actual occupancy ratios at the end of each month in the
24th FP and forecast occupancy ratios at the end of eachmonth in the 25th FP were compared on an average basis

50.3％

Almost the sameas the end of the24th FP‐

Assuming no fluctuation in total interest-bearing debt

50.3％

Averageoccupancy
ratio during
the FP

Period-end total assets LTV•

113 properties¥206,943 million

96.7％

Note: The above forecast figures are calculated based upon certain assumptions made as of November 15, 2017. Actual operating revenue, operating income, ordinary income, net income, and cash distribution per unit,
etc. may differ as a result of subsequent acquisitions or dispositions of real estate, trends in the real estate markets, changes in the operating environment, or any other conditions affecting the Investment
Corporation, etc. The above forecasts are not intended to be guarantees of business results or cash distribution. The same applies hereafter.

8

Forecast of Management Status for the 26th FP
Forecast cash
distribution
for the 26th FP¥2,200
per unit

Comparison
with the 25th FP revised forecast-¥30 (-1.3%)

Revised forecast
for the 25th FP

Forecast for the
26th FP

Difference¥6,728 million¥6,690 million-¥37 million¥236 million¥211 million-¥24 million¥6,965 million¥6,902 million-¥62 million(Out of which, depreciation)¥3,358 million(¥1,603 million)¥3,332 million(¥1,615 million)-¥26 million(¥12 million)

Other ordinary expenses¥620 million¥620 million¥0 million¥2,986 million¥2,950 million-¥36 million

Non-operating revenue¥0 million¥0 million‐

Non-operating expenses¥519 million¥515 million-¥3 million

Ordinary income¥2,467 million¥2,434 million-¥33 million

Net income¥2,465 million¥2,432 million-¥33 million¥2,230¥2,200-¥30

Number of properties

113 properties

113 properties‐

Total acquisition price¥206,943 million¥206,943 million

‐

Total

97.0％

96.6％

-0.4ptResidences
only

96.9％

96.5％

-0.4ptAlmost the sameas the end of the24th FP (50.3%)

Almost the sameas the end of the24th FP (50.3%)‐

Rent revenue
Other rent businessrevenue
Operating revenue
Expenses related to rent
business

Operating income

Assets undermanagement

Cash distribution per unit

Averageoccupancy
ratio during
the FP

Period-end total assets LTV

Cash distributions are expected to maintain the ¥2,200 level
despite the anticipated decrease in rent business income for the
low season

Major factors, etc.

•••

Decrease in rent revenue, etc. (including common-service fee) : -¥40 million
Increase in parking lot revenue : +¥2 million
Decrease in renewal fee : -¥28 million•••

Decrease in administration service fees : -¥15 million
Decrease in repair expenses : -¥20 million
Increase in depreciation for capital expenditures (large-scale repair works, etc.) :+¥12 million•

Total number of investment units issued and outstanding : 1,105,510 units (Nochange)•Assuming no new property acquisitions and dispositions•

Forecast occupancy ratios at the end of each month in both periods werecompared on an average basis for a revised forecast of the 25th FP and aforecast of the 26th FP•

Assuming no fluctuation in total interest-bearing debt

Note: The above forecast figures are calculated based upon certain assumptions made as of November 15, 2017. Actual operating revenue, operating income, ordinary income, net income, and cash distribution per unit,
etc. may differ as a result of subsequent acquisitions or dispositions of real estate, trends in the real estate markets, changes in the operating environment, or any other conditions affecting the Investment
Corporation, etc. The above forecasts are not intended to be guarantees of business results or cash distribution. The same applies hereafter.

9

Current Management Policy
Deepen collaborative
relationship with
Sekisui House GroupTo maximize unitholder value, the Investment Corporation aims to further
strengthen its stable financial base to support ongoing external growthand steady internal growth

Specificmeasures

Assessment ofenvironment

External growth strategy

Internal growth strategyThe population influx to major urban areas isincreasing due to an improved employment
environment

Information on prime residential properties that would
be suitable acquisitions is becoming less available



There is a limited supply of the kind of prime rental
condominiums that we invest in

Maintain focus on appropriate acquisition yields, basedon the pipeline of properties with Sekisui House Group

Maintain stable occupancy at high levels throughleasing grounded in the key features of each unitStrengthen collecting of information on properties fromexternal sources while cautiously reviewing theinformation, and invest selectively prime residential
propertiesMaximize profitability by aggressively increasing rents
while maintaining an optimal balance between
occupancy and rents

The real estate market remains overheated, and the
Cap Rate tends to be declineFinancial strategyInterest rates remain low, despite concerns that rates
will rise in Japan as they increase in the USAlthough the number of Investment Corporation Bonds
issued increased, the issuance amount per bondissuance is on a downward trendKeep ratio of long-term and fixed interest rate loans at
90% or higher, while utilizing short-term and floatinginterest rate loans as wellSelect the optimal fund procurement measures andfurther enhance the stability of the financial base(Reference) Current Target Cash Distributions per Unit in Growth Strategy Phase III (announced in May 2017)
1H (Low season) (Forecast) cash distribution per unit

FY2015
Annual cash
distribution¥4,247
per unit

FY2016
Annual cash
distribution¥4,379per unit

2H (High season) (Forecast) cash distribution per unit

FY2017
Annual cash
distribution

Raise the cash distribution
level per FP to¥4,485
per unit

the 2,300 yen range
Target annual cash distribution¥2,122 ¥2,125¥2,145 ¥2,234¥2,255 ¥2,230¥2,200

Aim for the

Results
for the20th FP

Results
for the21st FP

Results Results
for thefor the22nd FP 23rd FP

Results Forecast
for thefor the24th FP 25th FP

4,600 yen range

Forecast
for the26th FP

10

Residential Properties Planned, Developed or Owned by Sekisui House Group
SponsorAsset management company
Supply information

Sekisui House
Development Department

Sekisui House Asset Management

Exchange of opinions

Real Estate Investment Department

Demand informationAll

14 properties are in Greater Tokyo / Major Urban Areas (Tokyo 23 wards:13, Yokohama-shi:1)

Sekisui House holds
property planningmeetings periodicallyCompleted properties

Under construction

5 properties 473 units in total

6 properties 910 units in total

The Asset Management
Company participates
as an observer

Sekisui House plansand develops “Prime
Maison” etc. based on
the property planningmeetings(Tentative name)Prime Maison EGOTANOMORI（Nakano-ku, Tokyo）

526 units
Prime Maison
SHIROKANEDAI TOWER

Prime Maison
ASAKUSABASHI

Prime Maison
OTSUKA

Prime Maison
DAIKANYAMA

Prime Maison
MITATSUNAMACHI(Shinagawa-ku, Tokyo)(Taito-ku, Tokyo)(Toshima-ku, Tokyo)(Meguro-ku, Tokyo)(Minato-ku, Tokyo)

64 units

144 units

220 units<Completed in May 2016><Completed in Oct. 2016> <Completed in Jan. 2017>27 units

18 units<Completed in Jan. 2017><Completed in Oct. 2017>

Properties in the planning stage

3 properties(all in Tokyo 23 wards)

An example of “Prime
Maison” properties
owned by Sekisui
House other than theabove

Prime Maison
GOTENYAMA WEST
(Shinagawa-ku, Tokyo)

26 units<Completed in Jan. 2011>

An example of “MAST”
properties planned, developed orowned in recognition of theirvalues by Sekiwa Real Estatecompanies (7 companies)

Granmast
KAYABA(Nagoya-shi, Aichi)

27 units<Completed in Feb. 2012>

Note: With regard to properties on this page, the Investment Corporation has no specific plans to acquire any of the properties above as of the date of this document. Also, the images of “Prime Maison
MITATSUNAMACHI” in the “Completed properties” and the property that is “Under construction” are renderings based on the design documents and may differ from the actual building.

11

Status of the 24th FP-End Appraisal Value, etc.
Changes in Unrealized Gain / Loss of the Entire Portfolio and NAV per Unit
(million yen)
35,00030,000

Unrealized gain / loss (left axis)

NAV per Unit (right axis)¥108,793¥106,043¥101,898¥117,077¥112,937(yen)
140,000
120,000

25,000100,000

20,00080,00080,00015,00060,00060,00010,00040,00040,0005,000

20,00020,0000＋¥14,691million＋¥18,864million＋¥21,655million＋¥26,005million＋¥30,581million

End of 20th FP(Sept. 30, 2015)

End of 21st FP(Mar. 31, 2016)

End of 22nd FP(Sept. 30, 2016)

End of 23rd FP(Mar. 31, 2017)

End of 24th FP(Sept. 30, 2017)

Appraisal value, etc.

¥200,694 million¥207,565 million¥214,650 million¥226,015 million¥229,438 million

Period-end bookvalue
Unrealized gain /loss
Unrealized gain /loss ratio¥186,002 million¥188,701 million¥192,994 million¥200,010 million¥198,856 million¥14,691 million¥18,864 million¥21,655 million¥26,005 million¥30,581 million+7.9％+10.0％+11.2％+13.0％+15.4％

00Note 1: “NAV per unit” for each fiscal period is calculated by subtracting total distribution in each fiscal period from the amount of market value net assets based on appraisal value, etc. and dividing the obtained amountwith the number of investment units issued and outstanding as of the end of each fiscal period. Also, the “Appraisal value, etc.” indicates either the appraisal value or survey value. The same applies hereafter.
Note 2: Period-end unrealized gain/loss = Period-end appraisal value, etc. – Period-end book value Period-end unrealized gain/loss ratio = Period-end unrealized gain/loss ÷ Period-end book value

Status by Asset Class

RetailProperty

Residence

End of 23rd FP

End of 24th FP

Appraisal value, etc.

¥223,213 million ¥226,547 million

Period-end book value¥196,296 million ¥195,150 million

Unrealized gain / loss+¥26,916 million +¥31,396 million

Appraisal value, etc.

¥2,802 million¥2,891 million

Period-end book value¥3,714 million¥3,705 million

Unrealized gain / loss-¥911 million-¥814 million

Major factors in the changeThe appraisal value, etc. increased at 94 of the 112 residential properties
continuously owned from the end of the 23rd FP, due to factors such as thedecrease of the Cap Rate (The values increased at 94 properties, stayed the same at 11
properties, and decreased at 7 properties)

 The Cap Rate of HAMAMATSU Plaza decreased by 30bp due to factors such as

the opening of the Costco Hamamatsu Warehouse and transaction examples ofsimilar real estate (10bp of decrease of discount rate for the underlying land (sokochi)),and the appraisal value increased (+¥88 million)

12

ⅡManagement Status ofPortfolio for the 24th FP

Changes in Asset Size, LTV, and Cash Distribution
Transition to structure with
Sekisui House as sole sponsor

Business managed through joint sponsorship, with Sekisui House as the main sponsor
Total
AcquisitionPrice（million yen）

Properties acquired from Sekisui House
Properties acquired from Sekiwa Real Estate companies
Properties acquired from third parties
Properties disposed108
110properties
107
properties 193,890
properties
191,020
188,771

190,000
99
properties
171,099

170,000(38,345)89
properties
141,472

150,000

77
properties(16,075)
128,794130,000

110,000

58
57
properties
60
properties 106,234
53
properties
properties 103,974
101,006
99,920(3,340)(3,340)(3,340)(1,920)66(16,075)
properties
110,214(8,140)(1,920)90,000(3,270)LTV
Cash
distribution
per unit(10,930)(12,220)(47,005)(56,005)(56,005)(14,140)(14,140)95
properties (24,030)
151,744(22,275)(7,510)(9,180)(14,140)(3,750)Oct. 1, 2012

Apr. 22, 2013

Public offering

Public offering

Apr. 21, 2014

Oct. 22, 2014

Public offering

Public offering

Public offering

111,600units 97,970 units

83,240 units

Oct. 26, 2016

20,460 units 21,430 units
Oct. 26, 2012

May 23, 2013

May 22, 2014

Nov. 18, 2014

Nov. 14, 2016

Third-party
allotment

Third-party
allotment

Third-party
allotment

Third-party
allotment

Third-party
allotment

1,540 units

1,105 units

5,615 units

4,900 units

4,160 units

Disposition of part of
HAMAMATSU Plaza
East

Disposition of part of
HAMAMATSU Plaza, etc.

(42,615)(3,270)70,0000-10,000(38,345)111
properties
199,163

Disposition
Dispositionof 1 propertyof 1 property
Disposition of part of
1 property and 1 property Disposition of
5 properties

Aim to expand asset size while striving to maintainand improve the cash distribution level

210,000

113
113
properties properties
206,943
206,943

Dispositionof 1 property
Disposition of part of
1 property and 1 property

End of 10th FP(Sept.30,2010)

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

End of 12th FP(Sept.30,2011)

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

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

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

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

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

End of 18th FP(Sept.30, 2014)

End of 19th FP(Mar. 31,2015)

End of 20th FP(Sept.30,2015)

End of 21stFP(Mar. 31,2016)

End of 22ndFP(Sept.30,2016)

End of 23rd FP(Mar. 31,2017)

End of 24th FP(Sept.30,2017)

47.1%

48.3%

49.3%

51.5%

52.1%

53.4%

51.0%

53.4%

52.3%

51.1%

51.5%

52.3%

53.5%

50.3%

50.3%

¥ 1,632 ¥ 1,958 ¥ 2,009 ¥ 2,023 ¥ 2,070 ¥ 2,091 ¥ 2,107 ¥ 2,212 ¥ 2,131 ¥ 2,185 ¥ 2,122 ¥ 2,125 ¥ 2,145 ¥ 2,234 ¥ 2,255

Note 1: “LTV” is calculated by dividing the total interest-bearing debt at the end of each period by total assets at the end of each period. These figures are rounded to the nearest first decimal place.
Note 2: A five-for-one split of investment units was implemented on April 1, 2014, To account for the effect of the split, the actual figures for the “Cash distribution per unit” in and before the 17th FP (ended March 31, 2014) have been divided by five.

14

Summary of Residential Portfolio
Status of property acquisitions since Sekisui House becamea sponsor in March 2010

Asset size (Total acquisition price)
retail¥ 203.1 billion and ¥3.8 billion forproperty

Sekisui House
Acquired fromthird parties

Total number of owned properties

112 properties and 1 retail property

Total acquisition
price

28 properties

Sekisui House Group¥135.2 billion

71 properties

Average acquisition price per property¥ 1.8 billion¥ 56.0 billion¥ 70.1 billion

38(51.9%)

properties

Sekiwa Real Estate companies

Average only of
residential properties¥ 14.1 billion

10 properties

Diversification Status of Residential Portfolio
Diversification status by area(based on acquisition price)
Major Cities
Nationwide
27.7%(36 properties)

Greater Tokyo /Major Urban Areas
69.3%(71 properties)

Greater Tokyo

72.3%
Greater Tokyo/ Other Urban Areas
3.0% (5 properties)

Diversification status by property age(based on acquisition price)

15 years or more
9.1%
(7 properties)

Less than 5 years
13.2%(10 properties)

Diversification status
by walking distance to station(based on acquisition price)
More than
10 minutes
8.7%(13 properties)

Within 3 minutes
35.1%(31 properties)

Averageproperty age

Within10-minute walk

10.1years

91.3%

10 years or more
and less than
15 years
46.7%(55 properties)

5 years or more
and less than
10 years
30.9%(40 properties)

More than 5 minutes More than 3 minutes
and within 10 minutes and within 5 minutes
26.3%
29.9%
(37 properties)(31 properties)

Diversification status by floor area(based on leasable residential units)
100㎡ or more
0.6%(59 units)
50m2 or more andless than 100m2
22.9%(2,186 units)
Averagearea per unit

37.3㎡
30m2 or more andless than 50m2
24.8% (2,369 units)

Less than 30m2
51.7%
(4,932 units)

Note: The ratios of the above diversification statuses are rounded to the first decimal place. Accordingly, the ratios may not add up to 100% respectively. Also, “Average property age” uses the date of this document as the reference date and is calculated byseeking the weighted average of the property 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 residential area and the total number of leasable
residential units of owned properties. Both are rounded down to the first decimal place.

15

Occupancy Ratio and NOI Yield
Monthly Occupancy Ratio
Residential properties

Other real estate in trust (retail property)

100%

97.2％

96.7％

Total

97.8％

96.8％

97.1％

95%

90%

85%

80%

75%
Sept.
2015
End of20th FP

Oct.

Nov.

Dec.

Jan.
2016

Feb.

Mar.

Apr.

May

June

July

Aug.

End of21st FP

Sept.

Oct.

Nov.

Dec.

Jan.
2017

Feb.

End of22nd FP

Apr.

May

June

End of23rd FP

July

Aug.

Sept.
End of24th FP

Average NOI yield （before depreciation）

Occupancy Ratios
FP ended Sept. 30, 2016
(22nd FP)Mar.

FP ended Mar. 31, 2017
(23rd FP)As of the end of Average during As of the end of Average during
the FP
the FP
the FP
the FPFP ended Sept. 30, 2017(24th FP)As of the end Average duringof the FP
the FPFP ended
Sept. 30, 2016
(22nd FP)
Owned
properties

FP endedMar. 31, 2017
(23rd FP)
Owned
properties

FP ended
Sept. 30, 2017(24th FP)
Owned
properties

Residential properties

96.7%

96.3%

97.7%

97.0%

97.0%

96.8%

5.1%

5.1%

5.1%

Other real estate in trust(retail property)

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

3.6%

3.4%

3.4%

Total

96.8%

96.5%

97.8%

97.1%

97.1%

96.9%

5.0%

5.0%

5.0%

Note 1: Occupancy ratios in the above chart indicate the rate of total leased floor area to the total leasable floor area for the properties in each category owned by the Investment Corporation as of the end of each month from September 2015 to September
2017.
Note 2: Among occupancy ratios in the above table, “Average during the FP” figures for each period indicate the average of occupancy ratios as of the end of each month during the fiscal period ended September 30, 2016 (22nd FP), the fiscal period
ended March 31, 2017 (23rd FP) and the fiscal period ended September 30, 2017 (24th FP).
Note 3: “Average NOI yield (before depreciation)” in the above table are percentages calculated by dividing the total annualized actual NOI of each fiscal period by the total acquisition price with regard to each asset class the Investment Corporation owns
as of the end of the fiscal period ended September 30, 2016 (22nd FP), the fiscal period ended March 31, 2017 (23rd FP) and the fiscal period ended September 30, 2017 (24th FP).
Note 4: All of the figures above are rounded to the nearest first decimal place.

16

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

Greater Tokyo / Other Urban Areas

Major Cities Nationwide

The occupancy ratios surpassed 96% in all the months
during the FP, and following the previous FP, occupancy
ratios were consistently highThe occupancy ratio went below 95% at the beginning of the FP, but after
that, there was a slow recovery with the exception of some properties,
and the occupancy ratio was maintained at a level of 95% or higher

Occupancy ratios for some areas slowly declined, buthigh occupancy ratios for other areas contributed to themaintenance of a 97% average ratio during the FP

Average occupancy ratio
during the FPpt： 96.7% +1.0
year-on-year

Average occupancy ratio
during the FP

pt： 95.3% -0.1
year-on-year

Average occupancy ratio
during the FPpt： 97.0% 0year-on-year

Average NOI yield of owned
properties at period-end： 4.9% before
depreciation

Average NOI yield of owned
properties at period-end： 5.2% before
depreciation

Average NOI yield of owned
properties at period-end： 5.5% before
depreciation

Area data

Area data

Area data

Number of properties： 71 properties
Total leasable area
： 186,098.87㎡
Number of leasable units ： 5,499 units

Number of properties： 5 properties
Total leasable area
： 13,847.88㎡
Number of leasable units ： 359 units

Number of properties： 36 properties
Total leasable area
： 166,829.56㎡
Number of leasable units ： 3,742 units

Note: The “Area data” above shows figures for properties owned as of the end of the 24th FP (ended September 30, 2017).

Leasing with an optimum balance between occupancy ratio and rent achieved a 96.8 % average ratio during the FP, andrecorded the highest in the FP ending September 30, which is usually the low season

Change in Occupancy Ratios by Investment Area
100%

97.7％ 97.0％

96.0％ 96.4％
95%

Greater Tokyo / Major Urban Areas
Major Cities Nationwide

97.2％ 96.7％

Greater Tokyo / Other Urban Areas
Residences overall

98.2％ 97.7％

97.1％ 97.0％

96.6％

17

96.2％

95.9％

96.3％

97.1％

96.7％

95.4％

97.3％

97.0％

94.1％
90%
Average occupancy
ratio during the 21st FP: 96.3%

Average occupancy
ratio during the 22nd FP: 96.3%

Average occupancy
ratio during the 23rd FP: 97.0%

Average occupancy
ratio during the 24th FP: 96.8%85%
End of Sept. 2015
(End of 20th FP)

End of Dec.

End of Mar. 2016(End of 21st FP)

End of June

End of Sept. 2016(End of 22nd FP)

End of Dec.

End of Mar. 2017(End of 23rd FP)

End of June

End of Sept. 2017(End of 24th FP)

Note: “Change in Occupancy Ratios by Investment Area” above shows the month-end occupancy ratios with classification by investment area based on residential properties owned as of the end of each month and are rounded to the nearest first decimal
place. Moreover, the “Average occupancy ratios” during each FP are the average occupancy ratios of the month-end occupancy ratios during each FP.

17

Residential Properties New / Renewed Contract Rent Trends
Rent Trends in New Contracts
20th FP

21st FP

22nd FP

Rent Trends in Contract Renewals
23rd FP

No. of newcontracts

816

Total increase
in rent(number of cases)

thousandthousandthousandthousand(316)-¥1,326(327)-¥1,517(327)-¥1,150(391)-¥1,220

(228)
¥417

(277)
¥59

(213)
¥321

(184)
¥650

Total decrease
in rent(number of cases)
Change in rent (net)887¥1,744thousand885¥1,576¥1,472

thousandthousand944¥1,871

thousand24th FP

20th FP

21st FP

22nd FP

23rd FP

24th FP

880

No. of renewed
contracts

1,013

1,406

1,135

1,251

1,127

¥1,913

Total increase
in rent(number of cases)

thousandthousandthousandthousand

Total decrease
in rent(number of cases)

(54)
-¥5

thousand(31)-¥7

thousand

(29)
-¥17

thousand

(75)
-¥15

thousand

(2)
¥125

(2)
¥55

(4)
¥74

(2)
¥109

thousand

(450)
-¥873

thousand(159件)¥1,040thousandthousandthousandthousandthousand

0.4%

0.1%

0.3%

0.6%

1.0%

Rate of change
in rent against
previous rent

Decreased rent contract ratio

No rent change contract ratio

¥91

¥124

¥216

thousand

(69)
(-)

¥216

thousandthousandthousandthousand

0.1%

0.0%

0.1%

0.1%

0.2%

Decreased rent contract ratio

No rent change contract ratio

Increased rent contract ratio

100%

27.9％

24.1％

31.2％

18.1％

19.5％

75%

25%

¥62

thousandRate of change
in rent against
previous rent

Increased rent contract ratio

100%

50%

Change in rent (net)

¥130

0.1％

0.2％

0.4％

0.2％

75%

30.8％

39.1％

33.3％

31.9％

39.0％

38.7％

36.9％

36.9％

41.4％

20th FP

21st FP

22nd FP

23rd FP

50%

51.1％

97.7％

94.5％

93.9％

93.8％

25%

5.3％

0%

97.1％

2.6％

2.2％

6.1％

6.0％

0%

24th FP

Rent Trends in New Contracts by Investment Area
24th FP

No. of new contracts

Change in rent (net)

20th FP

21st FP

22nd FP

23rd FP

24th FP

Rent Trends in Contract Renewals by Investment Area

Rate of change in rent

Greater Tokyo /Major Urban Areas
Greater Tokyo /Other Urban Areas

575¥895 thousand

1.2%

52

¥7 thousand

Major Cities Nationwide

253

Total

880

24th FP

No. of renewed contracts

Change in rent (net)Rate of change in rent

660

¥212 thousand

0.2%

0.1%

Greater Tokyo /Major Urban Areas
Greater Tokyo /Other Urban Areas

40¥4 thousand

0.1%¥138 thousand

0.6%

Major Cities Nationwide

427-¥1,040 thousand

1.0%

Total

1,127

¥216 thousand

-

0.2%

Note: The “Rate of change in rent against previous rent” and “Rate of change in rent” above are the ratio of the total change in rent (net) for each fiscal period for new or renewed contracts against the total of previous
rent, and both ratios are rounded to the first decimal place.

18

Status of Selected Management Data on Residential Properties
Trend in Unit Rent per Tsubo for Occupied Space
Based on residential properties owned as of the end of the 24th FP (No properties were acquired or disposed from the end of the 23rd FP)
End of FP ended March 2017(end of 23rd FP)
Period-end
occupancy ratio

End of FP ended September 2017(end of 24th FP)

Period-end
unit rent per tsubo

Period-end
occupancy ratio

Period-end
unit rent per tsubo

Rate of change inAmount of change inunit rent per tsubo
unit rent per tsubo(against end of 23rd FP) (against end of 23rd FP)

Greater Tokyo /Major Urban Areas

97.0％¥13,103

96.8％¥13,122¥190.1％

Greater Tokyo /Other Urban Areas

97.1％¥8,746

95.4％¥8,735

-¥11

-0.1％

Major Cities Nationwide

97.1％¥7,364

95.3％¥7,356-¥8-0.1％

Overall

97.0％¥10,855

96.2％¥10,886¥31

0.3％

Note: The figures do not include the rent and the floor area of shops and offices within residential properties, as well as the rent and the floor area of residential properties in relation to which master lease agreementswith rent guarantee have been concluded with master lease companies, for its calculation.

Changes in Key Money Acquisition Rate

Changes in Renewal Rate

(%)

100

(%)

Key Money Acquisition Rate continuously secured around 50% level

100

Renewal Rate continuously secured around 80% level

87.4%
56.6%
50

48.8%

54.2%

57.5%

82.8%

59.2%

86.2%

84.5%

85.3%

23rd FP

24th FP75

050
20th FP

21st FP

22nd FP

23rd FP

24th FP

20th FP

21st FP

22nd FP

Note: The “Key Money Acquisition Rate” indicates the ratio of cases in which the Investment Corporation acquired key money from among the number of new contracts during each FP, and the “Renewal Rate” is the ratioof the number of residential units in relation to which contracts were renewed, among the number of residential units with contracts maturing during each FP. Both of these ratios are rounded to the first decimal
place.

19

Measures to Improve Profitability of Residential Properties
Construction for Replacement to LED Light Fixtures
Implemented LED light fixture replacement work in common areas in order to reduce electricity costs, etc. andpay consideration to the environment.
Implementation
fiscal period

Property nameConstruction cost

Expected amount ofannual decrease

18th FP to
23rd FP

Prime Maison GINZA EAST and 25 otherproperties¥ 77 million¥ 24.4 million

24th FP

Prime Maison MOMOCHIHAMA and 11
other properties(Additional construction was implemented for 6 properties
after the announcement of the 23rd FP financial statements)

Progress at 33.9% of the total of 112
residential properties

All construction costs are capital expenditures,and each fiscal period’s construction costs are

expected to be recovered in 3 to 4 years¥ 21 million¥ 6.8 million

38 properties
Total

The expected decrease in costs, including that of
total electricity costs due to replacement to LED
light fixtures, is ¥31.3 million per year

¥ 98 million¥ 31.3 million

with the reduction of electricity use costs and thelikePlans for the 25th FP and after call forcontinuing to make these replacements
mainly at properties where it is expected tobe highly cost effective

Note: The “Expected amount of annual decrease” through replacement work to LED light fixtures was calculated by the Asset Management Company based on proposal materials prepared by the companies that
performed the replacement work. There is no guarantee that the construction costs will be recovered as stated above.

Change of Elevator Maintenance Inspection Companies and Other Measures
Changed elevator maintenance inspection companies and negotiated with existing contractors in order to reduce theexpense of elevator maintenance and inspection work.
Annual expense of such work (total)

Implementation
fiscal period

Number of properties

Before change

After change

Amount of annual
decrease

23rd FP

50 properties¥ 32 million¥ 22 million¥ 9.6 million

24th FP(Including 6 properties for which wehave negotiated with existing
contractors)¥ 32 million¥ 22 million¥ 10.4 million

Total

94 properties¥ 65 million¥ 45 million¥ 20.0 million

44 properties

Maintained and improved the quality ofthe maintenance and inspection work forelevators
These changes cut the expense ofelevator maintenance and inspection workby roughly 30% in total

20

Major Initiatives for Enhancing Leasing of Residential Properties
Entrance renovation work at Esty Maison EBISU II
Updated the entrance of the property, which had been constructed about 14 years ago, to maintain andimprove the competitiveness of the property.
Construction cost

Construction period¥16 million

August 2017 to
September 2017

Details of work

(Excluding consumption tax)

• Install wall fixtures, ceiling fixtures, and indirect lighting in theentrance hall and the entrance approach(All was capital expenditure)

after

after

Entrance hall••

beforeVertical louvers maintainpartitioning from thesurrounding areas
Indirect lighting and a structureemphasizing horizontal andvertical lines create an elegant,luxurious space

Entrance approach••

The spatial designpreserving continuity withthe hallway
Wood-grained wall andceiling fixtures create aspace with a sense of depth

A hotel-like space with stone as a base and wood-grained accents

before21

Measures to Maintain / Improve Asset Values of Residential Properties
Implemented large-scale repair work during the 24th FP (ended September 30, 2017) in a planned manner based on
the long-term repair work plan
Construction cost

Property
Esty Maison
HAKATAHIGASHI
Esty Maison
SUGAMO
Esty Maison
TSUTSUJIGAOKA
Prime Maison
FUJIMIDAI

Details of work

(excluding consumption tax)

Property age
9.9 years
Property age
10.7 years
Property age
15.7 years
Property age
10.5 years¥159 million¥57 million¥48 million

Out of which,¥278 million
was capital
expenditure

Construction period

Repair and painting work for exterior
walls and common area hallway floors
and walls, as well as waterproofing workfor roof, balconies and common area
hallways, etc.
Washing and painting workfor exterior walls¥18 million

Esty Maison HAKATAHIGASHI

Waterproofing work for roof

beforeafter

Esty Maison TSUTSUJIGAOKA

Repairs of common area hallway
floors and ceilings

beforeafter

December 2016 to
September 2017
June 2017 to
September 2017
May 2017 to
September 2017
June 2017 toAugust 2017

Repairs of common area hallway
floors and walls

Esty Maison SUGAMO

beforeafter
Washing and painting workfor exterior walls

Prime Maison FUJIMIDAI

beforeafter

22

Present Status of HAMAMATSU Plaza
Costco Hamamatsu Warehouse opened on September 1, 2017.

Appearance

Adjacent Costco gas station opened in advance on August 5, 2017

Store entrance

Inside the store【Status of ownership of HAMAMATSU Plaza】

Costco gas station

Owned bySekisui House

100%

Owned bySekisui House
Quasi-co-ownership

Owned bythe Investment Corporation
Quasi-co-ownership

51%

49%

In addition to striving for stable management in the near term, collaborating with Sekisui House to raise the asset value of the
facility and considering making a decision on a disposition when the time is appropriate.

23

Ⅲ

Financial Activities inand after the 24th FP

Financial Activities for the 24th FP and Thereafter
Overview of Debt Financing
Refinanced debt of ¥2.705 billion due on August 31, 2017
Borrowing period

Debt

Before refinancing

5 years and
1 monthInterest rate on procurement¥2.705 billion

0.95750％

fixed by interest
rate swap

After refinancing

8 years¥2.528 billion

0.61380％

fixed

Aimed to extend borrowing period
while refinancing at lower interest rate
on procurement than before refinancing* Cash on hand was used to cover the difference of ¥177 million ofdebt before and after refinancing

New agreement executed for commitment line to replace the one ended on October 31, 2017
Maximum commitment line
amountOctober 6, 2017

Term of Commitment line

Lenders

November 1, 2017

Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation～¥10 billion

Date of agreement

October 31, 2018

Use of funds



Funds for acquiring new properties
Funds for refinancing (including redemption of
investment corporation bonds)
Funds for repair and renovation works of owned
properties

Reduces borrowing cost rates, and continues the approach of extending borrowing periods and fixing borrowing rates
Average borrowing cost rates during the FP (left axis)

(％)

1.50

1.25％

1.20％
4.2 years

1.00

0.50

Average remaining period of borrowing (right axis)

1.38％
4.9 years
4.5 years
1.09％
3.1 years

3.2 years

15th FP(Ended Mar. 2013)

16th FP(Ended Sept. 2013)

17th FP(Ended Mar. 2014)

18th FP(Ended Sept. 2014)

1.04％

19th FP(Ended Mar. 2015)

4.3 years

4.1 years

1.02％

1.01％

4.3 years

4.6 years(year)
6.0

4.3 years
4.0

20th FP(Ended Sept. 2015)

21st FP(Ended Mar. 2016)

0.95％

22nd FP(Ended Sept. 2016)

0.97％

0.95%

23rd FP(Ended Mar. 2017)24th FP(Ended Sept. 2017)

2.0

Note 1: The “Average borrowing cost rates during the FP” above are calculated by dividing the (annualized) borrowing cost for each FP by the balance of FP average interest-bearing debt during the FP, and rounded to the nearest second decimal place.
“Borrowing costs” are calculated by adding borrowing-related expenses and interest expenses on investment corporation bonds to interest expenses (excluding expenses related to early repayments and commitment line agreement).
Note 2: The “Average remaining period of borrowing” above are the weighted average of the remaining periods until the repayment (redemption) dates of borrowings and investment corporation bonds at the end of each period divided by the balance ofinterest-bearing debt at the end of each period. These figures are rounded down to the first decimal place.

25

Major Financial Indices Related to Financial Status (1)Ratios of Floating and Fixed Interest Rates

Ratios of Short-Term and Long-Term Borrowings(Note 1,2)

Maintain stable ratio of borrowings with fixed interest
Floating
(%)
100

Fixed

(%)
100

6.9%

6.9%

80

80

60

60

93.1%

90.6%

40

93.1%

40

20

Of which, scheduled for
repayment (redemption) within
one yearLong-term

2.8%(11.2%)

Conservative LTV control(8.3%)(8.1%)

0

97.2%

100.0%

100.0%End of 24th FP（Sept. 30, 2017）

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

(%)
55

Borrowing capacity up to 55% LTV

50.3%

53.5%

50.3%

(billion yen )45

21.9 billion

22.1 billion

6.8 billion

End of 23rd FP（Mar. 31, 2017）

Note 2: These are the ratios for the total interest-bearing debt.

End of 24th FP（Sept. 30, 2017）

13
130

808
303

35
End of 22nd FP(Sept. 30, 2016)

23
230
18
180

40

0
End of 23rd FP（Mar. 31, 2017）

LTV

50

20
End of 22nd FP(Sept. 30, 2016)(Note 1,3)

Maintain stable ratio of long-term borrowings
Short-term

9.4%

LTV Trends(Note 1,2)

End of 22nd FP End of 23rd FP End of 24th FP(Sept. 30, 2016) （Mar. 31, 2017） （Sept. 30, 2017）

Note 3: LTV was calculated by dividing the total interest-bearing debt at the end of each period by total assets at theend of each period.

Maturity Ladder (as of the date of this document)
Diversify repayment deadlines by targeting ¥10 billion, the maximum commitment line amount(million yen)
12,000Long-term borrowings ■Investment corporation bonds

Maximum commitmentline amount

10,000

8,000

2,500
Repaid using
cash on hand

3,000

2,000

6,000

9,900
4,000

2,000

6,792

9,830

4,400
2,100

(2,528)
8,100

7,100

2,528
177

0

8,382

4,000

2,500

6,500

5,400

3,000

5,500

4,100

6,128
1,900

2,400

FP ended
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
Sept. 30, 2017 Mar. 31, 2018 Sept. 30, 2018 Mar. 31, 2019 Sept. 30, 2019 Mar. 31, 2020 Sept. 30, 2020 Mar. 31, 2021 Sept. 30, 2021 Mar. 31, 2022 Sept. 30, 2022 Mar. 31, 2023 Sept. 30, 2023 Mar. 31, 2024 Sept. 30, 2024 Mar. 31, 2025 Sept. 30, 2025 Mar. 31, 2026
(24th FP)
(25th FP)
(26th FP)
(27th FP)
(28th FP)
(29th FP)
(30th FP)
(31st FP)
(32nd FP)
(33rd FP)
(34th FP)
(35th FP)
(36th FP)
(37th FP)
(38th FP)
(39th FP)
(40th FP)
(41st FP)

Note: Concerning the amounts in the graphs above, money amounts of less than 1 million yen are rounded down.

26

Major Financial Indices Related to Financial Status (2)Overview of Interest-Bearing Debt
End of 23rd FP (Mar. 31, 2017)

Short-term loans
payableLong-term loans
payableInvestment
corporation bonds
Total interest-bearing
debt

Status of Credit Rating (as of the date of this document)

End of 24th FP (Sept. 30, 2017)

Balance

Average Interest
Rate onProcurement

Balance

Average Interest
Rate onProcurement

－

－

－

－

¥91,209 million

0.8%¥91,032 million

0.8％¥14,500 million

0.8%¥14,500 million

0.8％¥105,709 million

0.8%¥105,532 million

0.8％

LTV

50.3％

AA-

Japan Credit Rating
Agency, Ltd.
(JCR)

(Stable)A+

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

(Stable)50.3％

Loans Payable Outstanding Balance by Financial Institution

1.4%
1.4%
1.4%
1.4%
1.4%

As of the date of this document

Financial Institution■ Mizuho Bank, Ltd.
■ Sumitomo Mitsui Banking Corporation■ The Bank of Tokyo-Mitsubishi UFJ, Ltd.

■ Mizuho Trust & Banking Co., Ltd.
■ Sumitomo Mitsui Trust Bank, Limited■ Mitsubishi UFJ Trust and Banking Corporation■ Development Bank of Japan Inc.
■ The Norinchukin Bank
■ Resona Bank, Limited■ The Bank of Fukuoka, Ltd.
■ Aozora Bank, Ltd.
■ Shinkin Central Bank
■ The Senshu Ikeda Bank, Ltd.
■ The Shizuoka Bank, Ltd.
■ The 77 Bank. Ltd.
■ The Hiroshima Bank, Ltd.
■ The Yamaguchi Bank, Ltd.
Total debt

Outstanding Balance¥16,001 million¥15,565 million¥9,750 million¥8,030 million¥6,850 million¥6,592 million¥6,241 million¥4,752 million¥4,550 million¥2,400 million¥2,200 million¥1,600 million¥1,300 million¥1,300 million¥1,300 million¥1,300 million¥1,300 million¥91,032 million

Share

17.6%
17.1%
10.7%
8.8%
7.5%
7.2%
6.9%
5.2%
5.0%
2.6%
2.4%
1.8%
1.4%
1.4%
1.4%
1.4%
1.4%
100.0%

1.8%
2.4%
2.6%
17.6%
5.0%

Share ofFinancial
Institution

5.2%
6.9%

17.1%

7.2%
7.5%

10.7%

8.8%

Note 1: Concerning figures in the tables and graph above, money amounts of less than one million yen are rounded down and percentage figures are rounded to the nearest first decimal place.
Note 2: The “Average Interest Rate on Procurement” above is the weighted average of applied interest rates as of March 31, 2017 and September 30, 2017 based on the balances of debts. These figures are rounded to the nearest first decimal place.
Note 3: The “Long-term loans payable” and “Investment corporation bonds” in the table above of overview of interest-bearing debt include long-term loans payable and investment corporation bonds scheduled for repayment (redemption) within one year.

27

Ⅳ

CSR and Environmental Activities

Sustainability Policy
Based on the “Sustainability Vision” of Sekisui House, the sponsor of the Investment Corporation and the firstcompany in the industry to earn recognition as an “Eco-First Company” from the Minister of the Environment, weformulated a “Sustainability Policy” in March 2015 to conduct real estate investment management with due
consideration given to “the environment, society and governance (ESG)”

Sustainability Policy
Compliance with Environment-related
Laws and Regulations and Rules

Energy Conservation Measures

Resource Depletion
Countermeasures

In addition to performing in-house training for the
purpose of enhancing knowledge with regard toenvironment-related laws and regulations and rules,
we conduct real estate investment andmanagement while maintaining compliance withenvironment-related laws and regulations and rules
toward the realization of a sustainable society.

We conduct measurement and management ofenergy consumption levels of properties owned by
the Investment Corporation, and proactively
promote activities toward the conservation ofenergy.

Biodiversity Activities

Information Disclosure

Contributing to Regions inwhich We Own Properties

In accordance with the “Gohon no ki” (Five Trees)
Planning promoted by Sekisui House, we conduct
maintenance and management of planting,selecting tree species while considering vegetation
existing within each region.

While regularly monitoring environmental activities,
we disclose information concerning sustainability
performance at our website. Furthermore, we willcontinue our efforts to acquire recognition fromoutside agencies, such as the DBJ Green Building
Certification.

While promoting the establishment of facilities toenable tenants to continue living safely andsecurely in the event of a disaster, by opening ourfacilities to neighborhood residents when a disasteroccurs, we are contributing to the areas in which weown properties.

 The “Sustainability Vision” of Sekisui House
In order to contribute to the formulation of a sustainable society, Sekisui HouseGroup indicates the creation and provision of the “Four Key Values” as their“Sustainability Vision”: Environmental value, Economic value, Social value, andHomeowner value.

Through the effective use of limited resources andenergy conservation measures, we proactively
undertake measures against the depletion of
resources.

 “Gohon no ki” (Five Trees) Planning Promoted by Sekisui House“Gohon no ki” (Five Trees) Planning is a Sekisui House original proposal for thecreation of gardens and communities where the ecosystem is taken into considerationand local indigenous trees are used for gardening. In this planning, “Five Trees”
indicates that Japanese indigenous trees will be promoted as “three trees for birds andtwo trees for butterflies.”

29CSR and Environmental Activity Case Studies
Energy Conservation Measures
LED light fixture replacement workin common areas

Switching to energy-efficient air
conditioners in exclusive areas

Implemented at a total of 38 properties
as of September 30, 2017

Replaced a total of 677A/C units
as of September 30, 2017

Electricity consumption
Expected total annual
reduction of approx.

Electricity consumption

1,189,098 kwh

Greenhouse gas emissions
Expected total annual
reduction of approx.

Expected total annual
reduction of approx.

150,971 kwh

Greenhouse gas emissions

610 t-CO2

Resource Depletion Countermeasures
Installing water-saving equipment

Expected total annual
reduction of approx.

71 t-CO2

Contributing to Regions in Which We Own Properties(flow control valves)

Installing emergency equipment, etc.

Water saving equipments were installed in common areas
in a total of 168 locations as of September 30, 2017

Major initiatives implemented
as of September 30, 2017:

Expected results
Installing flow control valves can help save water without negatively
affecting water pressure or other functionality, and each flow control
valve is expected to reduce consumption by roughly 30%

 Installing disaster-relief vending machines

 Installing automated external defibrillators (AED) Installing emergency cabinets for elevators* In addition to above, replacement works of bathroom water

faucets, shower heads, and kitchen water faucets, etc. to watersaving models have been conducted, that allow to expect approx.
20% to 30% water saving compared to previous models
Note: The figures for expected reductions above are estimated by Asset Management Company based on materials provided by the replacement work operator and materials published by the Agency for Natural
Resources and Energy of the Ministry of Economy, Trade and Industry; there is no guarantee that the expected reductions will be realized.

30

Record of Acquisition of Environmental Certification from External Agencies
Global Real Estate Sustainability Benchmark （GRESB）

GRESB

Selected as a “Sector Leader” in the Asian residential sector of the 2017GRESB sustainability survey, for the third consecutive year
[Overview of assessment results]

GRESB assessment

Green Star (the third consecutive year)

GRESB rating★★★★ （4 Stars）

GRESB Public Disclosure

C (global average)

GRESB is a benchmark system for evaluating sustainability performance in the real estate sector to enhance shareholder value by applying[Overview] environmental, social and governance (ESG) considerations to real estate investment and management. It was established in 2009, primarily bymajor European pension fund groups which initiated Principles for Responsible Investment (PRI).

DBJ Green Building Certification
Since obtaining certification for Prime Maison SHINAGAWA and Prime Maison GOTENYAMA EAST in 2015, as the firstresidential REIT to acquire it for its owned properties, we have acquired this certification for a total of 6 properties as ofthe date of this document.
Certification rank

Property name（five stars）

Prime Maison SHINAGAWA（four stars）

Prime Maison GOTENYAMA EAST
Prime Maison GINZA EAST
Prime Maison YOKOHAMA NIHON-ODORI（three stars）

Esty Maison OJIMAKOBE Women's Student Housing

Prime Maison SHINAGAWA

The DBJ Green Building Certification System recognizes outstanding properties that respond to the demands of the times. The system was[Overview] established based on a proprietary scoring model developed by the Development Bank of Japan, and serves to improve the environmental
functionality of buildings while encouraging the prevalence of properties that demonstrate awareness of societal demands.

31

ＭＥＭＯ

32

Ⅴ

AppendixBalance Sheet (1)23rd Fiscal Period(As of March 31, 2017)
Million yen

24th Fiscal Period(As of September 30, 2017)

Percent of total

Million yen

ChangePercent of total

Million yen

Period on period (%)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts

Total current assets
Non-current assets

3,793
5,096
146
150
0
0
-2
9,184

4.4

5,259
4,658
115
167
0
0
-2
10,19995.1

106,390-17,796
88,594
987
-269
717
2,029
-685
1,344
349
-120
229
107,82835
198,749

0.1

141
0
142

0.4
95.6

242
438
158
839
199,731

4.9

1,466
-437
-31
16
0
0
0
1,014

11.0

94.6

383
-1,486-1,103
4
-26
-22
7
-66
-59
51
-20
31
0
35
-1,116

-0.6

0.1

-2
-0
-2

-1.4

0.4
95.1

-0
-35
6
-29
-1,147-3.4-0.6

Property, plant and equipment

Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust

Construction in progress in trust
Total property, plant and equipment

106,007-16,30989,697
983
-243
739
2,022
-618
1,403
298
-100
197
107,827
199,866

Intangible assets
Leasehold rights in trust
Other
Total intangible assets

143
0
144

Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets

Total non-current assets

242
473
152
868
200,87934

Balance Sheet (2)23rd Fiscal Period(As of March 31, 2017)
Million yen

24th Fiscal Period(As of September 30, 2017)

Percent of total

Million yen

ChangePercent of total

Million yen

Period on period (%)

AssetsDeferred assets

0.0
100.0

44
33
78
210,009

4.8

249
4,000
4,600
657
52
1
19
245
4
9,831

10,50086,404
1,946
98,850108,84747.0
51.8

10,50086,432
1,903
98,835
108,667

47.0
51.7

28
-43
-15
-180

98,633

46.9

98,633

47.0

-

0.0

Total net assets

183
183
2,501
2,684
101,318
101,318

1.3
48.2
48.2

214
214
2,493
2,707
101,341
101,341

1.3
48.3
48.3

31
31
-8
23
23
23

-0.3
0.9
0.0
0.0

Total liabilities and net assets

210,166

100.0

210,009

100.0

-156

-0.1

Investment corporation bond issuance costs
Investment unit issuance costs

Total deferred assets

Total assets

52
49
102
210,166

0.0
100.0

-7
-16
-23
-156

-23.4
-0.1

4.7

-65
-205
88
-1
0
8
15
-5
-165

-1.7

-0.0
-0.2

Liabilities
Current liabilities
Operating accounts payable
Current portion of investment corporation bonds
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other

Total current liabilities

314
4,000
4,805
569
54
1
11
230
10
9,996

Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust

Total non-current liabilities

Total liabilities

Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total voluntary retained earnings
Unappropriated retained earnings
Total surplus

Total unitholders’ equity

35

Statement of Income and Retained Earnings
23rd Fiscal Period(from October 1, 2016
to March 31, 2017)
Million yen

24th Fiscal Period(from April 1, 2017
to September 30, 2017)

Percent of total

Million yen

ChangePercent of total

Million yen

Period on period (%)

Operating revenue
Rent revenue - real estate
Gain on sales of real estate properties

Total operating revenue

6,886
32
6,919

100.0

6,916
6,916

100.0

29
-32
-2

3,259
360
16
36
3
1
181
3,858

55.8

3,298
364
16
37
3
1
193
3,914

56.6

39
3
0
1
0
11
56

3,060

1.5

44.2

3,001

43.4

-58

-1.9

0.0

0
0
30
0
30

0.4

-0
-0
30
0
29

4,381.4-0.0

Operating expenses
Expenses related to rent business

Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Provision of allowance for doubtful accounts
Other operating expenses

Total operating expenses

Operating income
Non-operating income
Interest income
Reversal of distributions payable
Settlement received
Other

Total non-operating income

0
0
0
0

Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Borrowing related expenses
Amortization of investment unit issuance costs
Other

Total non-operating expenses
Ordinary Income
Income before income taxes
Income taxes – current
Income taxes – deferred

Total income taxes

Net income
Retained earnings brought forward
Unappropriated retained earnings

394
56

379
56

-14
0

7

7

0

79
21
0
558

8.0

76
16
0
537

7.7

-2
-4
-0
-21

-3.8

2,502

36.2

2,494

36.1

-7

-0.3

2,502
1
0
1

36.2

36.1

0.0

2,494
1
-0
1

0.0

-7
0
-0
0

-0.3
51.7
-1,989.0
47.9

2,501

36.2

2,493

36.0

-8

-0.3

36.2

2,493

36.0

-8

-0.3

2,501

36

Statements of Cash Flows / Cash Distributions
Statement of Cash Flows
23rd Fiscal Period
from October 1, 2016
to March 31, 201724th Fiscal Period
from April 1, 2017
to September 30, 2017

Million yen

Million yen

Cash flows from operating activities

23rd Fiscal Period
from October 1, 2016
to March 31, 201724th Fiscal Period
from April 1, 2017
to September 30, 2017

Million yen

Million yen

Cash flows from financing activities

Income before income taxes

2,502

2,494

Repayments of short-term loans payable-3,000-Depreciation

1,606

1,602

Proceeds from long-term loans payable

9,500

2,528

7

7

Repayments of long-term loans payable-9,500-2,705

16

Proceeds from the issuance of new investment units

9,661

-

Dividends paid

-2,183-2,469Amortization of investment corporation bond issuancecosts
Amortization of investment unit issuance costs

21

Increase (decrease) in allowance for doubtful
accounts-1-0Interest income-0-0Interest expenses

450

Decrease (increase) in operating accounts receivable

-33

31

Decrease (increase) in prepaid expenses

23

-16

Decrease (increase) in consumption taxes receivable

1-

Increase (decrease) in operating accounts payable

24

-62

Increase (decrease) in accounts payable – other

-141

4

Increase (decrease) in accrued consumption taxes

11

8

Increase (decrease) in advances received

-6

15

1,168

-

-28

35

-2

-6

5,603

4,566

0

0

Decrease due to sale of property, plant and equipmentin trust
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid

Net cash provided by operating activities

436

-452

-437

-1

-1

5,150

4,127

Purchase of intangible assets
Proceeds from tenant leasehold and security deposits
in trust
Repayments of tenant leasehold and security deposits
in trust
Decrease (increase) in investments and other assets,
net
Net cash used in investing activities

4,477-2,646

-119

1,028

9,009

8,889

Cash and cash equivalents at the end of period

8,889

9,918

Statement of Cash Distributions
23rd Fiscal Period
from October 1, 2016
to March 31, 2017yen

24th Fiscal Period
from April 1, 2017
to September 30, 2017
yen

Ⅰ Unappropriated retained earnings

2,501,336,041

2,493,073,959

Ⅱ Cash distributions

2,469,709,340

2,492,925,050[2,234][2,255][Cash distributions per unit]
Ⅲ Voluntary retained earnings

Cash flows from investing activities
Purchase of property, plant and equipment in trust

Net cash provided by financing activities
Net increase (decrease) in cash and cash
equivalents
Cash and cash equivalents at the beginning of
period-9,751

-402

-0

-

155

119

-143

-162

-7

-6

-9,747-452

Provision for reserve for reduction entry

31,626,701

0Ⅳ Retained earnings carried forward

0148,90937

Summary of Selected Financial Data
23rd Fiscal Period
from October 1, 2016
to March 31, 201724th Fiscal Period
from April 1, 2017
to September 30, 2017182 days

183 days

Total assets

210,166 million yen

210,009 million yen

Net assets

101,318 million yen

101,341 million yen

Unitholders’ capital

98,633 million yen

98,633 million yen

1,105,510 units

1,105,510 units

91,648 yen

91,669 yen

2,469 million yen

2,492 million yen

2,234 yen

2,255 yen

Ordinary income to total assets (annualized) (Note 1)

2.4%

2.4%

Return on unitholders’ equity (annualized) (Note 2)

5.2%

4.9%

Unitholders’ equity ratio (Note 3)

48.2%

48.3%

113

113

380,893.44㎡

382,734.80㎡

97.8%

97.1%

1,606 million yen

1,602 million yen

397 million yen

446 million yen

Leasing Net Operating Income (NOI) (Note 4)

5,234 million yen

5,220 million yen

Funds from Operation (FFO) (Note 5)

4,075 million yen

4,095 million yen

3,686 yen

3,704 yen

Total interest-bearing debt

105,709 million yen

105,532 million yen

Loan to Value (LTV) (Note 6)

50.3%

50.3%

Interest-bearing debt ratio (Note 7)

51.7%

51.7%

10.1 times

10.4 times

Business days

Investment units issued
Net assets per unit
Total cash distributions
Cash distributions per unit

Total number of properties
Total leasable floor area
Period-end occupancy ratio
Depreciation expense (Expenses related to rent business)

Capital expenditures

FFO per unit

Debt Service Coverage Ratio (DSCR) (Note 8)

Note 1: Ordinary income to total assets = Ordinary income (annualized) / Average total assets
Average total assets = (Period-beginning total assets + Period-end total assets) / 2
Note 2: Return on unitholders’ equity = Net income (annualized) / Average net assets
Average net assets = (Period-beginning net assets + Period-end net assets) / 2
Note 3: Unitholders’ equity ratio = Period-end net assets / Period-end total assets
Note 4: Leasing NOI = Leasing income for the fiscal period (Rent revenue-real estate - Expenses related to rent
business) + Depreciation expense (Expenses related to rent business)
Note 5: FFO = Net income - Gain on sales of real estate properties + Loss on sales of real estate properties+ Depreciation
Note 6: LTV = Period-end total interest-bearing debt / Period-end total assets
Interest-bearing debt = Borrowings + Investment corporation bonds
Note 7: Interest-bearing debt ratio = Period-end interest-bearing debt
/ (Period-end interest-bearing debt + Unitholders’ capital)
Note 8: DSCR = (Net income + Repayment of interest-bearing debt + Interest expenses + Depreciation)/ (Repayment of interest-bearing debt + Interest expenses)* Ratios are rounded to the nearest first decimal place.

38

Portfolio Development Policy
Investment Target
Invests only in real estate-related assets that are mainly used (Note)
as residences
Residences include student dorms, company housing andserviced housing for the elderly

Promote the establishment of a portfolio that centers on high-quality rental
residential properties planned and developed by the Sekisui House Group
Considering making the decision to sell the Existing Retail Property
in a timely manner while striving for their stable management

Note : “Mainly used” means that a majority of the total exclusive area of the relevant real estate-related asset is allocated for the specific use.

Target Investment Areas
Set Greater Tokyo / Major Urban Areas as the focused investment area for the portfolio

Establish an investment area called Major Cities Nationwide in the investmentarea categories outside Greater Tokyo and diversify investment
Investment area category
Greater Tokyo / Major Urban Areas

GreaterTokyo

Focused investment area
Greater Tokyo / Other Urban Areas

Major Cities
Nationwide

Major Urban Areas
Other Major Cities Nationwide

Maximally utilize the nationwide networkof the Sekisui House Group
Allocation ratio (Note 3)(based on acquisition price)

Specific area
① Tokyo： Tokyo 23 wards, Musashino-shi, Mitaka-shi, and Koganei-shi② Kanagawa： Yokohama-shi and Kawasaki-shi

Approx. 70%① Tokyo areas (except islands) and Kanagawa other than the above② Chiba and Saitama

Approx. 30%① Sapporo-shi, Sendai-shi, Nagoya-shi, Kyoto-shi, Osaka-shi, Kobe-shi, Hiroshima-shi and Fukuoka-shi② Areas within commuting distance from ① above (Note 1)

10% or less for
Other Major Cities Nationwide

Government designated cities, etc. other than the above (Note 2)

Note 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.
Note 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 ordinancecities at the entry into force or prefectural capitals in areas other than Major Urban Areas.
Note 3: “Approx.” in the allocation ratio means ±10%.
Note 4: Retail property owned as of the date of this document has been excluded from the calculation of the above allocation ratio.

Residence TypeWith regard to the types of rental housing that will be targets of investment, investment will be made in a wide range of rental housing types
in order to respond to the various needs of residents.

Single / Compact

FamilyLarge

Had already been positioned as a main investment target

Properties that are expected to have stable profitability
considering their area’s characteristics will be included as
investment target

Invest selectively after carefully analyzing the location
environment, etc.

Participate in the Sekisui House’s
development department’s planningmeeting as an observer

Sekisui House has extensive performancein development

Acquired 2 properties after public offering
in 16th FP

39

Portfolio Map (1)As of the date of this document

Osaka-shi

Nagoya-shi
Higashiyodogawa-ku
Yodogawa-ku

41

Asahi-ku
Miyakojima-kuKita-ku
28
Tsurumi-ku
20
73
Fukushima-ku
Joto-ku29

Nishi-ku

Nishiyodogawa-ku

Konohana-ku

Nishi-ku

Nakamura-ku

72 Chuo-ku

96
Chikusa-ku

Meito-ku

50

Naniwa-ku
Tennoji-ku Ikuno-ku
Taisho-ku
Nishinari-ku

111

Atsuta-ku Mizuho-ku

109

40

58 Showa-ku
Nakagawa-ku

59

Minato-ku

68 66
51 92 52
65
Naka-ku97

116 Higashinari-ku

23

Moriyama-ku
Kita-ku
Higashi-ku

11

Tempaku-ku

Minato-ku
Minami-ku

Abeno-ku 60

Midori-ku
Suminoe-ku

Higashisumiyoshi-ku
Hirano-ku
Sumiyoshi-ku

100 101
102

Greater Tokyo /Other Urban Areas

Fukuoka-shi

85

Itabashi-ku

Adachi-ku

Kita-ku
103
67

33
54 42

Nerima-ku
Higashi-ku
34

Toshima-ku

86
Katsushika-ku
19

Arakawa-ku

Sumida-ku
69 44
104
Taito-ku
Bunkyo-ku
Shinjuku
84
62
10
87
83 79
8 -ku
56
16
119
Suginami-ku
89
80
120 94
6 91
75
95
45
81
Chiyoda-ku Chuo-ku 98
115
63
88
Koto-ku
Shibuya-ku
3
64 1
114
70
76 31 Minato
4
-ku
27
5
105
48 Meguro
118 106
Setagaya-ku
17
53 -ku
74
24 90
99 39
21 78
43 71
26
77
Nakano-ku 82

36 47 46
35 55
61 Chuo-ku
Hakata-ku
93

Koganei -shiMusashino-shi

57

Nishi-ku

Mitaka-shi
Jonan-ku Minami-ku

107

Sawara-ku

37
117 113108

Edogawa-ku

Shinagawa 25-ku

1

Kawasaki-shi

Ota-ku14

Portfolio Earthquake PML

2.36％（Entire portfolio）

110●Residence (property number)◆Retail Property (property number)

1230

Yokohama-shi

22

15

Note: The “Portfolio Earthquake PML” is as of the survey in September 2017 on assets owned at the end of the 24th FP (ended September 30, 2017).
112

Greater Tokyo /Major Urban Areas

40

Portfolio Map (2)Greater Tokyo / Major Urban Areas
Residence

Residence

Residence

Residence-1

Esty Maison GINZA

Residence-63

Esty Maison SASAZUKA

Residence-118

Prime Maison SHIROKANE-TAKANAWA

Residence-3

Esty Maison AZABUNAGASAKA

Residence-64

Prime Maison GINZA EAST

Residence-119

Prime Maison ICHIGAYAYAMABUSHICHO

Residence-4

Esty Maison EBISU II

Residence-69

Esty Maison SENGOKU

Residence-120

Esty Maison MORISHITA

Residence-5

Esty Maison EBISU

Residence-70

Esty Maison DAIZAWA

Residence-6

Esty Maison KANDA

Residence-71

Esty Maison TOGOSHI

Residence-8

Esty Maison KITASHINJUKUResidence-74

Esty Maison SHIROKANEDAI

Residence-10

Esty Maison ASAKUSA KOMAGATA

Residence-75

Esty Maison HIGASHISHINJUKUResidence-12

Esty Maison KAWASAKI

Residence-76

Esty Maison MOTOAZABUResidence-14

Esty Maison SHINKAWASAKI

Residence-77

Esty Maison TORITSUDAIGAKU

Residence-15

Esty Maison YOKOHAMA

Residence-78

Esty Maison MUSASHIKOYAMA II

Greater Tokyo / Other Urban Areas
Residence

Residence

Residence-11

Esty Maison MACHIDA

Residence-109

Esty Maison TSUTSUJIGAOKA

Residence-40

Esty Maison HACHIOJIMINAMINO

Residence-111

MAST LIFE HINO

Residence-50

Prime Maison MUSASHINONOMORI

Residence-16

Esty Maison KAMEIDO

Residence-79

Esty Maison NAKANO

Residence-17

Esty Maison MEGURO

Residence-80

Esty Maison SHINNAKANO

Residence-19

Esty Maison SUGAMO

Residence-81

Esty Maison NAKANOFUJIMICHO

Residence-21

Esty Maison MEGUROHONCHO

Residence-82

Esty Maison TETSUGAKUDO

Residence-22

Esty Maison HAKURAKU

Residence-83

Esty Maison KOENJI

Residence-24

Esty Maison GOTANDA

Residence-84

Esty Maison OSHIAGE

Residence-20

Esty Maison KYOBASHI

Residence-67

Prime Maison TERIHA

Residence-25

Esty Maison OISENDAIZAKA

Residence-85

Esty Maison AKABANE

Residence-23

Esty Maison MINAMIHORIE

Residence-68

Esty Maison HIGASHISHIRAKABE

Residence-26

Esty Maison SHINAGAWA SEASIDE

Residence-86

Esty Maison OJI

Residence-28

Esty Maison JOTO

Residence-72

Esty Maison KAWARAMACHI

Residence-27

Esty Maison MINAMIAZABUResidence-87

Prime Maison WASEDA

Residence-29

Esty Maison TSUKAMOTO

Residence-73

Esty Maison NISHITENMA

Residence-30

Esty Maison KAWASAKI II

Residence-88

Prime Maison HATCHOBORIResidence-35

Esty Maison TENJINHIGASHI I

Residence-92

Esty Maison AOIResidence-31

Esty Maison AZABUJUBAN

Residence-89

Prime Maison JINBOCHO

Residence-36

Esty Maison TENJINHIGASHI II

Residence-93

Esty Maison YAKUIN

Residence-33

Esty Maison ITABASHIHONCHO

Residence-90

Prime Maison GOTENYAMA EAST

Residence-37

Esty Maison SHIJONISHINOTOIN

Residence-96

Prime Maison FUJIMIDAI

Residence-34

Esty Maison OIZUMIGAKUEN

Residence-91

MAST LIFE AKIHABARA

Residence-41

Esty Maison NISHINAKAJIMA

Residence-97

Esty Maison TSURUMAI

Residence-39

Esty Maison HIGASHISHINAGAWA

Residence-94

Esty Maison KINSHICHO II

Residence-46

Esty Maison HAKATAHIGASHI

Residence-100

Prime Maison ODORI KOEN

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

Residence-95

Esty Maison OJIMA

Residence-47

Esty Maison KAMIGOFUKUResidence-101

Prime Maison MINAMI 2-JO

Residence-43

Esty Maison MUSASHIKOYAMA

Residence-98

Prime Maison MORISHITA

Residence-51

Prime Maison HIGASHISAKURA

Residence-102

Prime Maison KAMOKAMOGAWA

Residence-44

Esty Maison SENDAGIResidence-99

Prime Maison SHINAGAWA

Residence-52

Prime Maison KAYABAKOEN

Residence-103

Prime Maison CENTRAL PARK

Residence-45

Esty Maison YOTSUYASAKAMACHI

Residence-104 MAST LIFE YAHIRO

Residence-55

MAST HAKATA

Residence-107

Granmast KANAZAWA NISHIIZUMIResidence-48

Esty Maison SANGENJAYAResidence-105 Prime Maison EBISU

Residence-58

Prime Maison GOKISO

Residence-108

Granmast UNOMORI

Residence-53

Esty Maison SANGENJAYA IIResidence-106 Esty Maison SHIBAURA

Residence-59

Prime Maison YUHIGAOKA

Residence-113

KOBE Women’s Student Housing

Residence-54

Esty Maison ITABASHI C6Residence-110 Esty Maison KOHOKU TSUNASHIMA

Residence-60

Prime Maison KITATANABE

Residence-116

Esty Maison UEMACHIDAIResidence-56

Esty Maison KINSHICHO

Residence-112 Prime Maison YOKOHAMA NIHON-ODORIResidence-61

Prime Maison MOMOCHIHAMAResidence-117

Esty Maison KOBE-SANNOMIYA

Residence-57

Esty Maison MUSASHIKOGANEIResidence-114 Prime Maison SHIBUYAResidence-65

Prime Maison TAKAMI

Residence-62

Esty Maison AKIHABARA

Residence-115 Prime Maison HATSUDAIResidence-66

Prime Maison YADAMINAMI

Major Cities Nationwide
Residence

Residence

Other Real Estate in Trust (Retail Property)
Retail-1

HAMAMATSU Plaza

41

List of Properties Owned at End of Fiscal Period (1)Property No

Property Name

Location

Site Area（㎡）

Acquisition Price
Total Floor
Area
Ratio
Price
（㎡）
（Million yen）（%）

Occupancy Ratio（%）
Acquisition Date

As of Ｍａｒ.
31, 2017

As of Sept.
30, 2017

Completion Date

Residence- 1

Esty Maison GINZA

Ginza, Chuo-ku, Tokyo

636.36

7,836.57

5,290

2.6

August 2, 2005

98.0

97.4

February 7, 2005

Residence- 3

Esty Maison AZABUNAGASAKA

Roppongi, Minato-ku, Tokyo

677.452,317.87

1,730

0.8

August 2, 2005

91.5

91.5

January 16, 2004

Residence- 4

Esty Maison EBISU II

Higashi, Shibuya-ku, Tokyo

561.582,452.69

1,960

0.9

August 2, 2005

97.5

97.9

June 13, 2003

Residence- 5

Esty Maison EBISU

Hiroo, Shibuya-ku, Tokyo

169.00871.90700

0.3August 2, 2005

85.0

100.0

October 20, 2004

Residence- 6

Esty Maison KANDA

Kandata-cho, Chiyoda-ku, Tokyo

307.692,028.19

1,360

0.7

August 2, 2005

95.6

96.3

February 20, 2004

Residence- 8

Esty Maison KITASHINJUKU

Kita-shinjuku, Shinjuku-ku, Tokyo

504.412,204.07

1,290

0.6

August 2, 2005

92.9

100.0

August 6, 2004

Residence-10 Esty Maison ASAKUSA KOMAGATA

Komagata, Taito-ku, Tokyo

663.54

3,406.10

1,870

0.9

August 2, 2005

100.0

94.5

July 28, 2004

Residence-11 Esty Maison MACHIDA

Hara-machida, Machida-shi, Tokyo

587.484,033.59

1,360

0.7

August 2, 2005

98.4

91.8

February 23, 2004

Residence-12 Esty Maison KAWASAKI

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

683.694,656.10

2,130

1.0

August 2, 2005

96.6

95.3

July 15, 2004

Residence-14 Esty Maison SHINKAWASAKI

Furuichiba, Saiwai-ku, Kawasaki-shi, Kanagawa

1,992.09

3,737.47

1,018

0.5

November 1, 2005

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

1.0

February 28, 2007

100.0

100.0

January 23, 2007

Residence-16 Esty Maison KAMEIDO

Kameido, Koto-ku, Tokyo

438.432,899.67

1,650

0.8

January 31, 2006

98.9

97.0

November 30, 2005

Residence-17 Esty Maison MEGURO

Mita, Meguro-ku, Tokyo

578.01

1,283.92887

0.4

February 1, 2006

100.0

95.0

November 28, 2005

Residence-19 Esty Maison SUGAMO

Sugamo, Toshima-ku, Tokyo

965.702,785.83

1,510

0.7

March 9, 2007

97.3

100.0

February 22, 2007

Residence-20 Esty Maison KYOBASHI

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

799.685,995.82

2,774

1.3

April 3, 2006

99.4

96.9

March 2, 2006

Residence-21 Esty Maison MEGUROHONCHO

Megurohoncho, Meguro-ku, Tokyo

865.22

1,975.84

1,220

0.6

March 30, 2006

93.4

86.0

February 22, 2006

Residence-22 Esty Maison HAKURAKU

Rokkakubashi, Kanagawa-ku, Yokohama-shi, Kanagawa

457.54

1,593.68844

0.4

April 3, 2006

92.7

96.5

February 2, 2006

Residence-23 Esty Maison MINAMIHORIE

Minamihorie, Nishi-ku, Osaka-shi, Osaka

475.06

1,994.14

1,055

0.5

March 9, 2007

97.0

96.8

February 19, 2007

Residence-24 Esty Maison GOTANDA (Note 4)

Nishi-gotanda, Shinagawa-ku, Tokyo

593.325,590.34

3,043

1.5

September 14, 2006

96.6

94.3

March 2, 2006

Residence-25 Esty Maison OISENDAIZAKA

Higashi-oi, Shinagawa-ku, Tokyo

558.393,440.73

2,440

1.2

September 14, 2006

97.9

98.7

August 10, 2006

Residence-26 Esty Maison SHINAGAWA SEASIDE

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,049.00

3,127.48

2,200

1.1

September 14, 2006

98.3

93.4

June 23, 2006

Residence-27 Esty Maison MINAMIAZABUMinamiazabu, Minato-ku, Tokyo

487.27

1,479.61

1,300

0.6

October 23, 2006

100.0

98.1

August 23, 2006

Residence-28 Esty Maison JOTO

Noe, Joto-ku, Osaka-shi, Osaka

740.492,232.26

1,075

0.5

November 15, 2006

100.0

93.6

August 31, 2006

Residence-29 Esty Maison TSUKAMOTO

Tsukamoto, Yodogawa-ku, Osaka-shi, Osaka

808.542,565.66

1,250

0.6

December 1, 2006

100.0

97.9

August 10, 2006

Residence-30 Esty Maison KAWASAKI II

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

601.383,193.14

1,900

0.9

March 28, 2007

100.0

96.9

February 27, 2007

Residence-31

Esty Maison AZABUJUBAN

Azabujuban, Minato-ku, Tokyo

380.26

2,097.45

2,700

1.3

May 11, 2007

98.8

91.8

February 22, 2007

Residence-33

Esty Maison ITABASHIHONCHO

Yamato-cho, Itabashi-ku, Tokyo

220.85

1,446.78

1,000

0.5

August 21, 2007

98.4

95.4

February 27, 2007

Residence-34

Esty Maison OIZUMIGAKUEN

Higashi-Oizumi, Nerima-ku, Tokyo

618.001,542.16871

0.4

August 21, 2007

96.2

89.8

February 22, 2007

Residence-35

Esty Maison TENJINHIGASHI I

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

239.18

1,158.70445

0.2

September 28, 2007

94.4

100.0

January 31, 2007

42

List of Properties Owned at End of Fiscal Period (2)Location

Site Area（㎡）

Acquisition Price
Total Floor
Area
Ratio
Price
（㎡）
（Million yen）（%）

Property No

Property Name

Residence-36

Esty Maison TENJINHIGASHI II

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

514.892,108.69840

0.4

Residence-37

Esty Maison SHIJONISHINOTOIN

Myodenji-cho, Shijo-sagaru, Nishinotoin-dori,Shimogyo-ku, 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

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 4)

Residence-44

Esty Maison SENDAGI (Note 4)

Residence-45

Esty Maison YOTSUYASAKAMACHI (Note 4)

Yotsuyasakamachi, Shinjuku-ku, Tokyo

Residence-46

Esty Maison HAKATAHIGASHI

Yoshizuka, Hakata-ku, Fukuoka-shi, Fukuoka

Residence-47

Esty Maison KAMIGOFUKUResidence-48

Esty Maison SANGENJAYAResidence-50
Residence-51

Occupancy Ratio（%）
Acquisition Date

Completion Date

As of Ｍａｒ.
31, 2017

As of Sept.
30, 2017

September 28, 2007

98.8

93.9

May 23, 2007

0.7

April 25, 2008

100.0

95.5

April 8, 2008

2,610

1.3

July 1, 2008

93.6

94.4

May 23, 2008

2,243.06

1,000

0.5

November 1, 2007

96.5

97.7

March 6, 2007

3,947.24

2,250

1.1

November 1, 2007

96.9

92.1

April 18, 2007

731.71

4,322.19

2,700

1.3

November 1, 2007

99.2

96.0

April 22, 2007

Ebara, Shinagawa-ku, Tokyo

512.62

1,616.87

1,012

0.5

November 30, 2007

98.2

100.0

November 5, 2007

Sendagi, Bunkyo-ku, Tokyo

250.44

1,239.10757

0.4

February 6, 2008

93.1

100.0

January 9, 2008

905.083,675.01

2,300

1.1

April 25, 2008

100.0

96.7

March 29, 2008

4,590.91

9,465.09

2,250

1.1

March 26, 2008

97.6

97.5

November 21, 2007

Kamigofukumachi, Hakata-ku, Fukuoka-shi, Fukuoka

606.492,523.71900

0.4April 25, 2008

98.5

98.5

March 14, 2008

Sangenjaya, Setagaya-ku, Tokyo

153.83954.94871

0.4

December 15, 2008

94.4

88.8

January 22, 2008

Prime Maison MUSASHINONOMORI

Josuihoncho, Kodaira-shi, Tokyo

5,116.62

4,412.42

1,560

0.8

October 1, 2010

97.9

96.4

December 19, 2007

Prime Maison HIGASHISAKURA

Higashisakura, Higashi-ku, Nagoya-shi, Aichi

846.053,517.62

1,140

0.6

October 1, 2010

98.6

88.9

February 15, 2008

Residence-52

Prime Maison KAYABAKOEN

Kayaba, Chikusa-ku, Nagoya-shi, Aichi

1,129.02

2,301.42640

0.3

October 1, 2010

100.0

93.0

November 7, 2006

Residence-53

Esty Maison SANGENJAYA II

Shimouma, Setagaya-ku, Tokyo

473.85

1,006.89

714

0.3

March 25, 2011

100.0

88.8

January 28, 2008

Residence-54

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

773.485,249.34

2,260

1.1

June 10, 2011

97.9

97.0

March 12, 2008

Residence-55

MAST HAKATA (Note 5)

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

2,457.01

11,621.67

1,920

0.9

February 1, 2012

100.0

100.0

January 15, 2005

Residence-56

Esty Maison KINSHICHO

Kinshi, Sumida-ku, Tokyo

338.57

1,718.10

1,050

0.5

February 1, 2012

100.0

91.6

September 6, 2006

Residence-57

Esty Maison MUSASHIKOGANEI

Honcho, Koganei-shi, Tokyo

520.252,676.36

1,450

0.7

March 2, 2012

95.1

98.0

February 2, 2005

Residence-58

Prime Maison GOKISO

Ayuchitori, Showa-ku, Nagoya-shi, Aichi

1,429.67

4,691.72

1,640

0.8

April 2, 2012

98.4

92.7

October 28, 2008

Residence-59

Prime Maison YUHIGAOKA

Ueshio, Tennoji-ku, Osaka-shi, Osaka

547.152,336.49810

0.4April 2, 2012

100.0

100.0

February 16, 2007

Residence-60

Prime Maison KITATANABE

Kitatanabe, Higashisumiyoshi-ku, Osaka-shi, Osaka

640.92

2,112.46

540

0.3

April 2, 2012

100.0

96.6

June 13, 2006

Residence-61

Prime Maison MOMOCHIHAMA

Momochihama, Sawara-ku Fukuoka-shi, Fukuoka

4,069.42

8,945.61

1,810

0.9

April 2, 2012

100.0

100.0

February 29, 1996

Residence-62

Esty Maison AKIHABARA

Ueno, Taito-ku, Tokyo

458.322,821.47

1,560

0.8

June 29, 2012

96.2

97.5

February 24, 2006

Residence-63

Esty Maison SASAZUKA

Sasazuka, Shibuya-ku, Tokyo

909.33

4,263.10

2,830

1.4

September 5, 2012

96.6

97.5

September 7, 2004

Residence-64

Prime Maison GINZA EAST

Tsukiji, Chuo-ku, Tokyo

969.108,724.48

5,205

2.5

October 1, 2012

97.2

95.9

February 28, 2006

Residence-65

Prime Maison TAKAMI

Takami, Chikusa-ku, Nagoya-shi, Aichi

1,129.17

2,354.34905

0.4

October 1, 2012

89.9

92.9

August 27, 2008

43

List of Properties Owned at End of Fiscal Period (3)Property No

Property Name

Location

Site Area（㎡）

Acquisition Price
Total Floor
Area
Ratio
Price
（㎡）
（Million yen）（%）

Occupancy Ratio（%）
Acquisition Date

As of Ｍａｒ.
31, 2017

As of Sept.
30, 2017

Completion Date

Residence-66

Prime Maison YADAMINAMI

Yadaminami, Higashi-ku, Nagoya-shi, Aichi

1,148.53

2,430.23715

0.3

October 1, 2012

96.6

96.1

July 18, 2007

Residence-67

Prime Maison TERIHA

Kashiiteriha, Higashi-ku, Fukuoka-shi, Fukuoka

4,130.59

7,953.60

1,110

0.5

October 1, 2012

100.0

100.0

August 31, 2005

Residence-68

Esty Maison HIGASHISHIRAKABE

Yoshino, Higashi-ku, Nagoya-shi, Aichi

1,959.76

4,232.39

1,350

0.7

October 1, 2012

100.0

100.0

February 27, 2006

Residence-69

Esty Maison SENGOKU

Sengoku, Bunkyo-ku, Tokyo

1,002.14

2,068.21

1,075

0.5

February 8, 2013

91.7

98.4

August 6, 2009

Residence-70

Esty Maison DAIZAWA

Daizawa, Setagaya-ku, Tokyo

1,901.36

2,948.98

1,870

0.9

February 8, 2013

97.6

98.9

February 18, 2010

Residence-71

Esty Maison TOGOSHI

Togoshi, Shinagawa-ku, Tokyo

679.82

2,545.90

1,370

0.7

February 8, 2013

99.0

97.8

June 25, 2009

Residence-72

Esty Maison KAWARAMACHI

Kawaramachi, Chuo-ku, Osaka-shi, Osaka

655.894,580.48

1,640

0.8

March 1, 2013

94.7

95.0

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 HIGASHISHINJUKU (Note 6)

Residence-76

Esty Maison MOTOAZABUResidence-77
Residence-78

519.65

4,514.05

1,440

0.7

March 1, 2013

94.8

97.1

November 30, 2007

1,279.67

2,797.66

1,900

0.9

March 1, 2013

94.1

97.8

September 16, 2003

Shinjuku, Shinjuku-ku, Tokyo

679.192,227.87

1,363

0.7

May 1, 2013

98.2

97.8

April 17, 2009

Motoazabu, Minato-ku, Tokyo

755.991,699.44

1,170

0.6

May 1, 2013

100.0

100.0

November 9, 2009

Esty Maison TORITSUDAIGAKU

Tairamachi, Meguro-ku, Tokyo

766.84

1,399.75729

0.4

May 1, 2013

95.3

100.0

February 23, 2009

Esty Maison MUSASHIKOYAMA II

Koyama, Shinagawa-ku, Tokyo

609.81

1,436.58844

0.4

May 1, 2013

100.0

97.8

May 25, 2009

Residence-79

Esty Maison NAKANO

Chuo, Nakano-ku, Tokyo

687.472,608.04

1,540

0.7

May 1, 2013

97.9

100.0

June 24, 2009

Residence-80

Esty Maison SHINNAKANO

Honcho, Nakano-ku, Tokyo

747.64

1,508.07

847

0.4

May 1, 2013

95.9

98.0

October 22, 2009

Residence-81

Esty Maison NAKANOFUJIMICHO

Yayoicho, Nakano-ku, Tokyo

907.66

1,531.56

863

0.4

May 1, 2013

93.4

100.0

February 16, 2009

Residence-82

Esty Maison TETSUGAKUDO

Matsugaoka, Nakano-ku, Tokyo

686.93

1,858.00

954

0.5

May 1, 2013

97.6

96.9

October 21, 2009

Residence-83

Esty Maison KOENJI

Koenjiminami, Suginami-ku, Tokyo

1,100.15

1,977.24

958

0.5

May 1, 2013

95.1

100.0

March 10, 2009

Residence-84

Esty Maison OSHIAGE

Narihira, Sumida-ku, Tokyo

1,134.70

4,344.84

1,950

0.9

May 1, 2013

98.8

100.0

April 23, 2010

Residence-85

Esty Maison AKABANE

Akabane, Kita-ku, Tokyo

1,157.02

5,675.18

2,730

1.3

May 1, 2013

97.0

98.2

November 25, 2009

Residence-86

Esty Maison OJI

Oji, Kita-ku, Tokyo

518.872,939.76

1,380

0.7

May 1, 2013

98.9

100.0

July 6, 2010

Residence-87

Prime Maison WASEDA

Waseda Tsurumaki-cho, Shinjuku-ku, Tokyo

358.54

1,914.93

1,280

0.6

October 1, 2013

93.0

96.1

November 8, 2012

Residence-88

Prime Maison HATCHOBORI

Hatchobori, Chuo-ku, Tokyo

302.07

1,901.58

1,160

0.6

October 1, 2013

90.0

96.9

November 16, 2012

Residence-89

Prime Maison JINBOCHO

Kandajinbo-cho, Chiyoda-ku, Tokyo

389.482,341.30

1,640

0.8

October 1, 2013

93.6

93.6

March 1, 2013

Residence-90

Prime Maison GOTENYAMA EAST

Kitashinagawa, Shinagawa-ku, Tokyo

2,167.60

3,727.89

2,120

1.0

October 1, 2013

95.7

89.0

January 18, 2011

Residence-91

MAST LIFE AKIHABARA

Kanda Sakumagashi, Chiyoda-ku, Tokyo

151.48939.79480

0.2January 21, 2014

100.0

100.0

October 3, 2006

Residence-92

Esty Maison AOI

Aoi, Higashi-ku, Nagoya-shi, Aichi

906.67

5,107.47

2,160

1.0

January 31, 2014

96.3

88.7

October 3, 2007

Residence-93

Esty Maison YAKUIN

Hirao, Chuo-ku, Fukuoka-shi, Fukuoka

1,342.00

5,590.13

2,008

1.0

March 28, 2014

96.4

97.1

February 2, 2006

Residence-94

Esty Maison KINSHICHO II

Kotobashi, Sumida-ku, Tokyo

1,679.75

11,160.19

6,720

3.2

May 1, 2014

95.8

97.6

January 17, 2008

44

List of Properties Owned at End of Fiscal Period (4)Property No

Property Name

Location

Site Area（㎡）

Acquisition Price
Total Floor
Area
Ratio
Price
（㎡）
（Million yen）（%）

Occupancy Ratio（%）
Acquisition Date

As of Ｍａｒ.
31, 2017

As of Sept.
30, 2017

Completion Date

Residence-95

Esty Maison OJIMA

Ojima, Koto-ku, Tokyo

3,003.87

11,940.22

7,120

3.4

May 1, 2014

98.9

98.0

September 13, 2007

Residence-96

Prime Maison FUJIMIDAI

Fujimidai, Chikusa-ku, Nagoya-shi, Aichi

4,882.14

6,173.03

1,755

0.8

May 1, 2014

91.0

91.2

April 24, 2007

Residence-97

Esty Maison TSURUMAI

Chiyoda, Naka-ku, Nagoya-shi, Aichi

3,470.05

21,577.20

3,760

1.8

May 1, 2014

100.0

100.0

November 27, 1999

Residence-98

Prime Maison MORISHITA

Morishita, Koto-ku, Tokyo

461.602,668.30

1,720

0.8

November 4, 2014

100.0

94.3

May 14, 2013

Residence-99

Prime Maison SHINAGAWA

Kita-Shinagawa, Shinagawa-ku, Tokyo

972.94

2,693.31

1,680

0.8

November 4, 2014

100.0

98.3

February 18, 2014

Residence-100 Prime Maison ODORI KOEN

Odori-nishi, Chuo-ku, Sapporo-shi, Hokkaido

1,007.42

11,090.88

2,660

1.3

November 4, 2014

92.3

96.0

December 15, 2008

Residence-101 Prime Maison MINAMI 2-JO

Minami 2-jo Nishi, Chuo-ku, Sapporo-shi, Hokkaido

1,085.66

8,477.68

1,470

0.7

November 4, 2014

99.1

96.5

November 30, 2009

Residence-102 Prime Maison KAMOKAMOGAWA

Minami 7-jo Nishi, Chuo-ku, Sapporo-shi, Hokkaido

754.61

6,160.49970

0.5

November 4, 2014

98.0

92.5

October 30, 2009

Residence-103 Prime Maison CENTRAL PARK (Note 7)

Kashii Teriha, Higashi-ku, Fukuoka-shi, Fukuoka

5,000.02

10,249.72

2,230

1.1

November 4, 2014

100.0

98.6

February 3, 2011

Residence-104 MAST LIFE YAHIRO

Yahiro, Sumida-ku, Tokyo

1,296.64

4,012.49

1,670

0.8

November 4, 2014

100.0

100.0

January 14, 2011

Residence-105 Prime Maison EBISU

Ebisu, Shibuya-ku, Tokyo

587.16

3,798.12

3,585

1.7

January 15, 2015

100.0

94.8

June 5, 2014

Residence-106 Esty Maison SHIBAURA

Shibaura, Minato-ku, Tokyo

1,217.25

4,855.53

2,730

1.3

March 31, 2015

95.8

98.6

August 26, 1996

Residence-107 Granmast KANAZAWA NISHIIZUMI

Nishiizumi, Kanazawa-shi, Ishikawa

1,633.40

5,181.40

1,005

0.5

April 2, 2015

100.0

100.0

September 14, 2007

Residence-108 Granmast UNOMORIUnomori, Yokkaichi-shi, Mie

790.452,444.91745

0.4

April 2, 2015

100.0

100.0

April 13, 2009

Residence-109 Esty Maison TSUTSUJIGAOKA

Nishitsutsujigaoka, Chofu-shi, Tokyo

1,503.25

2,456.48871

0.4

May 14, 2015

92.2

89.7

March 9, 2002

Residence-110 Esty Maison KOHOKU TSUNASHIMA

Shin-yoshida Higashi, Kohoku-ku, Yokohama-shi,
Kanagawa

5,632.35

7,408.15

2,680

1.3

July 10, 2015

100.0

100.0

(Note 8)Residence-111 MAST LIFE HINO

Shinmachi, Hino-shi, Tokyo

600.203,341.96

1,290

0.6

October 1, 2015

98.1

100.0

January 13, 2010

Residence-112 Prime Maison YOKOHAMA NIHON-ODORI

Honcho, Naka-ku, Yokohama-shi, Kanagawa, andanother

887.06

8,196.14

4,270

2.1

January 29, 2016

98.1

92.8

June 27, 2014

Residence-113 KOBE Women’s Student Housing

Koyocho Naka, Higashinada-ku, Kobe-shi, Hyogo

4,494.55

23,773.26

5,700

2.8

March 1, 2016

100.0

100.0

February 28, 2002

Residence-114 Prime Maison SHIBUYA

Shibuya, Shibuya-ku, Tokyo

431.802,238.04

2,190

1.1

April 1, 2016

96.6

100.0

July 4, 2014

Residence-115 Prime Maison HATSUDAI

Hatsudai, Shibuya-ku, Tokyo

644.333,761.80

2,700

1.3

April 1, 2016

94.7

96.6

December 11, 2014

Residence-116 Esty Maison UEMACHIDAI

Uehonmachi-nishi, Chuo-ku, Osaka-shi, Osaka

407.962,609.61950

0.5April 1, 2016

97.5

100.0

August 17, 2005

Residence-117 Esty Maison KOBE-SANNOMIYA

Onoe-dori, Chuo-ku, Kobe-shi, Hyogo

446.712,304.05

970

0.5

April 1, 2016

98.3

94.8

March 22, 2007

Residence-118

Prime Maison SHIROKANE-TAKANAWA

Mita, Minato-ku, Tokyo

832.92

5,503.55

4,500

2.2

November 1, 2016

98.1

96.9

June 15, 2015

Residence-119

Prime Maison ICHIGAYAYAMABUSHICHO

Ichigaya yamabushicho, Shinjuku-ku, Tokyo

1,113.91

5,771.76

4,000

1.9

November 1, 2016

93.9

99.4

October 13, 2015

Residence-120

Esty Maison MORISHITA

Kikukawa, Sumida-ku, Tokyo

263.84922.68628

0.3

March 17, 2017

95.1

100.0

February 9, 2017

125,627.31

456,158.33

203,122

98.2

97.7

97.0

Residence Subtotal

45

List of Properties Owned at End of Fiscal Period (5)Location

Site Area（㎡）

Acquisition Price
Total Floor
Area
Ratio
Price
（㎡）
（Million yen）（%）

Kaminishi-cho, Higashi-ku, Hamamatsu-shi, Shizuoka, andothers73,937.28

11,229.79

3,820

1.8

Other real estate in trust （retail property） Subtotal

73,937.28

11,229.79

3,820

Portfolio Total

199,564.59

467,388.12

206,943

Property No

Retail-1

Property Name

HAMAMATSU Plaza (Note 9)

Occupancy Ratio（%）
Acquisition Date

As of Ｍａｒ.
31, 2017

As of Sept.
30, 2017

100.0

100.0

1.8

100.0

100.0

100.0

97.8

97.1

July 28, 2005

Completion Date

(Note 9)Note 1: Based on information as of September 30, 2017. The occupancy ratios in the residence subtotal, other real estate in trust (retail property) subtotal and portfolio total are occupancy ratios for properties owned at
the end of each FP, and are rounded to the first decimal place.
Note 2: Concerning the “Acquisition Price”, amounts of less than one million yen are rounded down, and ratios indicate the portion of the total acquisition price described in the “Portfolio Total” for properties owned and arerounded to the first decimal place.
Note 3: The listed “Site Area”, “Total Floor Area” figures and “Completion Date” are based on indications given in the register.
Note 4: 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 and 245,317 / 329,739, respectively. However, the “Site Area” indicates the total land area of the real estate in trust and the “Total Floor Area” indicates the floor area of the entire
building. The exclusive portions of the total floor area that the Investment Corporation has acquired are 3,637.18㎡, 1,148.58㎡, 867.27㎡ and 2,253.07㎡, respectively.
Note 5: MAST HAKATA is a leasehold property with a general fixed-term land leasehold of 50 years 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 is indicated in the land leasehold agreement.
Note 6: The Investment Corporation acquired trust beneficiary interest in real estate for Esty Maison HIGASHISHINJUKU at the acquisition price of 1,370 million yen on May 1, 2013 and started operations, but a part ofthe land (measured area: 6.62㎡) was disposed on July 29, 2016. The “Site Area” and “Acquisition Price” do not include the disposed portion.
Note 7: Part of the land of Prime Maison CENTRAL PARK (Lot: 23-32) is leased land and the building (store) on the leased land is owned by the leaseholder, and thus the floor area of the building (store) is not included in
the “Total Floor Area” above and “Completion Date” of the building (store) is not indicated.
Note 8: Esty Maison KOHOKU TSUNASHIMA is comprised of three buildings, the “East”, the “West” and the “Annex”. The “Completion Date” are March 11, 2002, October 23, 2002 and September 19, 2002, respectively.
Note 9: As of the date of this document, HAMAMATSU Plaza is a commercial complex centered on Costco Hamamatsu Warehouse, which opened on September 1, 2017, and is comprised of the Costco Hamamatsu
Warehouse Building, Xebio Building, Akachan Honpo Building, Hamapla & Frespo Building, a management building and a gas station for Costco members in the Hamamatsu Plaza East area, and HamamatsuWest Building (being demolished as of the date of this document) as well as the Hamamatsu Plaza Sports Building (Zexis) in the Hamamatsu Plaza West area.
The Investment Corporation acquired trust beneficiary interests in real estate of HAMAMATSU Plaza other than certain buildings, etc. on July 28, 2005, and started operations, but disposed the entire Hamamatsu
Plaza West area and a part of Hamamatsu Plaza East area to Sekisui House on March 30, 2012, and September 30, 2013, and thus holds only 49% quasi-co-ownership of trust beneficiary interests in real estatein Hamamatsu Plaza East, excluding the site and building of Costco Hamamatsu Warehouse Building, the building of Hamapla & Frespo Building and the facilities of the gas station for Costco members(collectively referred to as “Hamamatsu Plaza East Xebio Building and Other Portions” hereafter) as of the date of this document. Furthermore, for the “Site Area” and “Total Floor Area” above, those for the entire
Hamamatsu Plaza East Xebio Building and Other Portions are indicated. In addition, the building of the Hamapla & Frespo Building and facilities of the gas station for Costco members are owned by the tenants
and those sites are for rent, so the site area is not included in the “Total Floor Area ”.
Furthermore, the “Acquisition Price” is the amount that corresponds to the Investment Corporation’s 49% quasi-co-ownership, and thus do not include the disposed portion.
With regard to the “Completion Date” , the management building was completed on November 7, 2000, and the Akachan Honpo and Xebio Buildings were completed on November 9, 2000, but no “CompletionDate” is shown for the building of the Hamapla & Frespo Building and facilities of the gas station for Costco members because, as mentioned above, the buildings and facilities are owned by the tenants.

46

List of Fiscal Period-End Estimated Values (1)Estimated value at the endof period (Million yen)
Property No.

Property Name

As of Sept.
30, 2017

Direct capitalization rate (%)

Period on
periodAs of Sept.
30, 2017

Period on
periodDiscount rate (%)
As of Sept.
30, 2017

Terminal capitalization rate (%)

Period on
periodAs of Sept.
30, 2017

Period on
periodAcquisition
price（Million yen）

Balance sheet
amount(Million yen)

Unrealized
gain / loss
(Million yen)

Residence- 1

Esty Maison GINZA

6,390

150

4.1

-0.1

4.3

-0.1

4.3

-0.1

5,290

4,687

1,702

Residence- 3

Esty Maison AZABUNAGASAKA

1,760

30

4.2

-0.1

4.3

-0.1

4.4

-0.1

1,730

1,605

154

Residence- 4

Esty Maison EBISU II

2,000

30

4.2

-0.1

4.3

-0.1

4.4

-0.1

1,960

1,885

114

Residence- 5

Esty Maison EBISU

855

20

4.1

-0.1

4.2

-0.1

4.3

-0.1

700

634

220

Residence- 6

Esty Maison KANDA

1,570

30

4.2

-0.1

4.3

-0.1

4.4

-0.1

1,360

1,260

309

Residence- 8

Esty Maison KITASHINJUKU

1,550

30

4.4

-0.1

4.4

-0.1

4.6

-0.1

1,290

1,206

343

Residence-10

Esty Maison ASAKUSA KOMAGATA

2,140

40

4.4

-0.1

4.4

-0.1

4.6

-0.1

1,870

1,686

453

Residence-11

Esty Maison MACHIDA

1,550

20

4.8

-0.1

4.7

-0.1

5.0

-0.1

1,360

1,133

416

Residence-12

Esty Maison KAWASAKI

2,360

-

4.5

-0.1

4.5

-0.1

4.7

-0.1

2,130

1,800

559

Residence-14

Esty Maison SHINKAWASAKI

1,230

30

5.1

-0.1

3.9

-0.1

5.3

-0.1

1,018

919

310

Residence-15

Esty Maison YOKOHAMA

2,130

40

4.5

-0.1

4.3

-0.1

4.7

-0.1

2,090

1,866

263

Residence-16

Esty Maison KAMEIDO

1,580

30

4.5

-0.1

4.3

-0.1

4.7

-0.1

1,650

1,393

186

Residence-17

Esty Maison MEGURO

1,060

20

4.2

-0.1

4.0

-0.1

4.4

-0.1

887

783

276

Residence-19

Esty Maison SUGAMO

1,590

40

4.3

-0.1

4.1

-0.1

4.5

-0.1

1,510

1,498

91

Residence-20

Esty Maison KYOBASHI

2,970

60

4.7

-0.1

4.6

-0.1

4.8

-0.1

2,774

2,246

723

Residence-21

Esty Maison MEGUROHONCHO

1,130

10

4.2

-0.1

4.0

-0.1

4.4

-0.1

1,220

1,106

23

Residence-22

Esty Maison HAKURAKU

932

15

4.6

-0.1

4.4

-0.1

4.8

-0.1

844

701

230

Residence-23

Esty Maison MINAMIHORIE

1,040

30

4.6

-0.1

4.4

-0.1

4.8

-0.1

1,055

934

105

Residence-24

Esty Maison GOTANDA

3,090

60

4.4

-0.1

4.1

-0.1

4.6

-0.1

3,043

2,719

370

Residence-25

Esty Maison OISENDAIZAKA

2,730

70

4.2

-0.1

4.0

-0.1

4.4

-0.1

2,440

2,204

525

Residence-26

Esty Maison SHINAGAWA SEASIDE

2,010

30

4.3

-0.1

4.1

-0.1

4.5

-0.1

2,200

1,953

56

Residence-27

Esty Maison MINAMIAZABU

1,220

30

4.0

-0.1

3.8

-0.1

4.2

-0.1

1,300

1,184

35

Residence-28

Esty Maison JOTO

951

2

5.0

-0.1

4.8

-0.1

5.2

-0.1

1,075

966

-15

Residence-29

Esty Maison TSUKAMOTO

1,080

20

5.0

-0.1

4.8

-0.1

5.2

-0.1

1,250

1,103

-23

Residence-30

Esty Maison KAWASAKI II

1,860

10

4.5

-0.1

4.3

-0.1

4.7

-0.1

1,900

1,705

154

Residence-31

Esty Maison AZABUJUBAN

2,620

40

4.0

-0.1

3.8

-0.1

4.2

-0.1

2,700

2,589

30

Residence-33

Esty Maison ITABASHIHONCHO

927

20

4.4

-0.1

4.2

-0.1

4.6

-0.1

1,000

903

23

Residence-34

Esty Maison OIZUMIGAKUEN

773

9

4.5

-0.1

4.3

-0.1

4.7

-0.1

871

783

-10

Residence-35

Esty Maison TENJINHIGASHI I

364

5

5.1

-0.1

4.9

-0.1

5.3

-0.1

445

373

-9

47

List of Fiscal Period-End Estimated Values (2)Estimated value at the endof period (Million yen)

Direct capitalization rate (%)

Discount rate (%)

Terminal capitalization rate (%)

Acquisition
price（Million yen）

Balance sheet
amount(Million yen)

Unrealized
gain / loss
(Million yen)

Property No.

Property Name

Residence-36

Esty Maison TENJINHIGASHI II

738

10

5.1

-0.1

4.9

-0.1

5.3

-0.1

840

700

37

Residence-37

Esty Maison SHIJONISHINOTOIN

1,170

20

4.9

-0.1

4.7

-0.1

5.1

-0.1

1,420

1,263

-93

Residence-39

Esty Maison HIGASHISHINAGAWA

2,400

50

4.3

-0.1

4.1

-0.1

4.5

-0.1

2,610

2,413

-13

Residence-40

Esty Maison HACHIOJIMINAMINO

875

-

5.0

-0.1

4.9

-0.1

5.1

-0.1

1,000

871

3

Residence-41

Esty Maison NISHINAKAJIMA

1,900

-

4.9

-

4.7

-

5.1

-

2,250

1,880

19

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

2,480

-

4.4

-

4.2

-

4.6

-

2,700

2,453

26

Residence-43

Esty Maison MUSASHIKOYAMA

1,040

20

4.3

-0.1

4.1

-0.1

4.5

-0.1

1,012

932

107

Residence-44

Esty Maison SENDAGI

697

15

4.3

-0.1

4.1

-0.1

4.5

-0.1

757

701

-4

Residence-45

Esty Maison YOTSUYASAKAMACHI

2,090

40

4.2

-0.1

4.0

-0.1

4.4

-0.1

2,300

2,161

-71

Residence-46

Esty Maison HAKATAHIGASHI

2,400

10

5.1

-

5.1

-

5.2

-

2,250

2,154

245

Residence-47

Esty Maison KAMIGOFUKU

821

2

4.9

-

4.9

-

5.0

-

900

793

27

Residence-48

Esty Maison SANGENJAYA

824

19

4.2

-0.1

4.3

-0.1

4.4

-0.1

871

826

-2

Residence-50

Prime Maison MUSASHINONOMORI

1,860

40

4.8

-0.1

4.7

-0.1

5.0

-0.1

1,560

1,472

387

Residence-51

Prime Maison HIGASHISAKURA

1,490

20

4.8

-0.1

4.7

-0.1

5.0

-0.1

1,140

1,021

468

Residence-52

Prime Maison KAYABAKOEN

787

22

5.1

-0.1

5.0

-0.1

5.3

-0.1

640

590

196

Residence-53

Esty Maison SANGENJAYA II

786

9

4.3

-0.1

4.4

-0.1

4.5

-0.1

714

659

126

Residence-54

Esty Maison ITABASHI C6

2,640

50

4.3

-0.1

4.1

-0.1

4.5

-0.1

2,260

2,076

563

Residence-55

MAST HAKATA

2,360

-120

5.1

-0.1

4.5

-0.1

5.3

-0.1

1,920

1,749

610

Residence-56

Esty Maison KINSHICHO

1,220

-60

4.3

-

4.1

-

4.5

-

1,050

1,013

206

Residence-57

Esty Maison MUSASHIKOGANEI

1,740

30

4.5

-0.1

4.6

-0.1

4.7

-0.1

1,450

1,512

227

Residence-58

Prime Maison GOKISO

1,890

-20

4.8

-0.1

4.8

-0.1

5.0

-0.1

1,640

1,507

382

Residence-59

Prime Maison YUHIGAOKA

909

-11

4.7

-0.1

4.5

-0.1

4.9

-0.1

810

744

164

Residence-60

Prime Maison KITATANABE

601

-3

5.0

-0.1

4.8

-0.1

5.2

-0.1

540

495

105

Residence-61

Prime Maison MOMOCHIHAMA

1,900

-130

5.1

-0.1

4.8
(Note 4)

-0.1

5.3

-0.1

1,810

1,891

8

Residence-62

Esty Maison AKIHABARA

1,980

-

4.3

-

4.1

-

4.5

-

1,560

1,473

506

Residence-63

Esty Maison SASAZUKA

3,350

70

4.2

-0.1

4.0

-0.1

4.4

-0.1

2,830

2,756

593

Residence-64

Prime Maison GINZA EAST

6,160

10

4.1

-

3.9

-

4.3

-

5,205

4,924

1,235

Residence-65

Prime Maison TAKAMI

1,050

20

4.6

-0.1

4.7

-0.1

4.8

-0.1

905

849

200

As of Sept.
30, 2017

Period on
periodAs of Sept.
30, 2017

Period on
periodAs of Sept.
30, 2017

Period on
periodAs of Sept.
30, 2017

Period on
period48

List of Fiscal Period-End Estimated Values (3)Estimated value at the endof period (Million yen)
Property No.

Property Name

As of Sept.
30, 2017

Direct capitalization rate (%)

Period on
periodAs of Sept.
30, 2017

Period on
periodDiscount rate (%)
As of Sept.
30, 2017

Terminal capitalization rate (%)

Period on
periodAs of Sept.
30, 2017

Period on
periodAcquisition
price（Million yen）

Balance sheet
amount(Million yen)

Unrealized
gain / loss
(Million yen)

Residence-66

Prime Maison YADAMINAMI

821

8

5.1

-

5.0

-

5.3

-

715

666

154

Residence-67

Prime Maison TERIHA

1,360

50

5.1

-0.2

4.9

-0.2

5.3

-0.2

1,110

1,027

332

Residence-68

Esty Maison HIGASHISHIRAKABE

1,580

20

5.0

-0.1

4.9
(Note 4)

-

5.2

-0.1

1,350

1,246

333

Residence-69

Esty Maison SENGOKU

1,360

30

4.0

-0.1

3.8

-0.1

4.2

-0.1

1,075

1,072

287

Residence-70

Esty Maison DAIZAWA

2,280

60

4.0

-0.1

3.8

-0.1

4.2

-0.1

1,870

1,869

410

Residence-71

Esty Maison TOGOSHI

1,730

40

4.2

-0.1

4.3

-0.1

4.4

-0.1

1,370

1,351

378

Residence-72

Esty Maison KAWARAMACHI

1,940

50

4.7

-0.1

4.8

-0.1

4.9

-0.1

1,640

1,546

393

Residence-73

Esty Maison NISHITENMA

1,680

20

4.6

-0.1

4.7

-0.1

4.8

-0.1

1,440

1,359

320

Residence-74

Esty Maison SHIROKANEDAI

2,390

60

4.1

-0.1

3.9

-0.1

4.3

-0.1

1,900

1,942

447

Residence-75

Esty Maison HIGASHISHINJUKU (Note 5)

1,640

40

4.2

-0.1

4.3

-0.1

4.4

-0.1

1,363

1,325

314

Residence-76

Esty Maison MOTOAZABU

1,510

20

4.0

-0.1

4.1

-0.1

4.2

-0.1

1,170

1,162

347

Residence-77

Esty Maison TORITSUDAIGAKU

842

9

4.1

-0.1

4.2

-0.1

4.3

-0.1

729

726

115

Residence-78

Esty Maison MUSASHIKOYAMA II

1,040

20

4.1

-0.1

3.9

-0.1

4.3

-0.1

844

829

210

Residence-79

Esty Maison NAKANO

1,870

30

4.1

-0.1

3.9

-0.1

4.3

-0.1

1,540

1,512

357

Residence-80

Esty Maison SHINNAKANO

1,020

27

4.2

-0.1

4.0

-0.1

4.4

-0.1

847

832

187

Residence-81

Esty Maison NAKANOFUJIMICHO

967

19

4.3

-0.1

4.4

-0.1

4.5

-0.1

863

852

114

Residence-82

Esty Maison TETSUGAKUDO

1,170

30

4.2

-0.1

4.0

-0.1

4.4

-0.1

954

930

239

Residence-83

Esty Maison KOENJI

1,140

30

4.2

-0.1

4.3

-0.1

4.4

-0.1

958

949

190

Residence-84

Esty Maison OSHIAGE

2,440

40

4.4

-0.1

4.4

-0.1

4.6

-0.1

1,950

1,904

535

Residence-85

Esty Maison AKABANE

3,300

80

4.3

-0.1

4.1

-0.1

4.5

-0.1

2,730

2,637

662

Residence-86

Esty Maison OJI

1,660

30

4.3

-0.1

4.1

-0.1

4.5

-0.1

1,380

1,335

324

Residence-87

Prime Maison WASEDA

1,580

20

4.1

-0.1

3.9

-0.1

4.3

-0.1

1,280

1,232

347

Residence-88

Prime Maison HATCHOBORI

1,460

30

4.1

-0.1

3.9

-0.1

4.3

-0.1

1,160

1,112

347

Residence-89

Prime Maison JINBOCHO

1,920

-

4.2

-

4.0

-

4.4

-

1,640

1,584

335

Residence-90

Prime Maison GOTENYAMA EAST

2,820

30

4.0

-

3.8

-

4.2

-

2,120

2,087

732

Residence-91

MAST LIFE AKIHABARA

555

12

4.3

-0.1

4.1

-0.1

4.5

-0.1

480

471

83

Residence-92

Esty Maison AOI

2,490

40

4.8

-0.1

4.8

-0.1

5.0

-0.1

2,160

2,066

423

Residence-93

Esty Maison YAKUIN

2,370

40

4.7

-0.1

4.8

-0.1

4.9

-0.1

2,008

2,016

353

Residence-94

Esty Maison KINSHICHO II

8,340

240

4.2

-0.1

4.0

-0.1

4.4

-0.1

6,720

6,602

1,737

49

List of Fiscal Period-End Estimated Values (4)Estimated value at the endof period (Million yen)
Property No.

Property Name

As of Sept.
30, 2017

Direct capitalization rate (%)

Period on
periodAs of Sept.
30, 2017

Period on
periodDiscount rate (%)
As of Sept.
30, 2017

Terminal capitalization rate (%)

Period on
periodAs of Sept.
30, 2017

Period on
periodAcquisition
price（Million yen）

Balance sheet
amount(Million yen)

Unrealized
gain / loss
(Million yen)

Residence-95

Esty Maison OJIMA

8,730

210

4.2

-0.1

4.0

-0.1

4.4

-0.1

7,120

7,005

1,724

Residence-96

Prime Maison FUJIMIDAI

2,080

60

5.0

-0.1

4.8

-0.1

5.2

-0.1

1,755

1,756

323

Residence-97

Esty Maison TSURUMAI

4,500

80

5.0

-0.1

4.8

-0.1

5.2

-0.1

3,760

3,781

718

Residence-98

Prime Maison MORISHITA

1,920

20

4.4

-0.1

4.4

-0.1

4.6

-0.1

1,720

1,727

192

Residence-99

Prime Maison SHINAGAWA

1,980

40

4.2

-0.1

4.0

-0.1

4.4

-0.1

1,680

1,691

288

Residence-100 Prime Maison ODORI KOEN

3,160

70

4.9

-0.1

4.7

-0.1

5.1

-0.1

2,660

2,675

484

Residence-101 Prime Maison MINAMI 2-JO

1,940

30

5.0

-0.1

4.8

-0.1

5.2

-0.1

1,470

1,479

460

Residence-102 Prime Maison KAMOKAMOGAWA

1,250

30

5.0

-0.1

4.8

-0.1

5.2

-0.1

970

979

270

Residence-103 Prime Maison CENTRAL PARK (Note 6)

2,309

11

5.2

-

5.0

-

5.3

-

2,230

2,266

42

Residence-104 MAST LIFE YAHIRO

1,910

30

4.5

-0.1

4.3

-0.1

4.7

-0.1

1,670

1,686

223

Residence-105 Prime Maison EBISU

4,360

110

4.0

-0.1

3.8

-0.1

4.2

-0.1

3,585

3,622

737

Residence-106 Esty Maison SHIBAURA

2,910

-

4.3

-

4.1

-

4.5

-

2,730

2,870

39

Residence-107 Granmast KANAZAWA NISHIIZUMI

1,090

-10

5.3

-

5.1

-

5.5

-

1,005

1,031

58

Residence-108 Granmast UNOMORI

830

13

5.2

-0.1

5.0

-0.1

5.4

-0.1

745

757

72

Residence-109 Esty Maison TSUTSUJIGAOKA

913

-

4.5

-0.1

4.6

-0.1

4.7

-0.1

871

955

-42

Residence-110 Esty Maison KOHOKU TSUNASHIMA

2,751

1

4.7

-

4.5

-

4.9

-

2,680

2,833

-82

Residence-111 MAST LIFE HINO

1,390

20

4.8

-0.1

4.6

-0.1

4.9

-0.1

1,290

1,323

66

Residence-112 Prime Maison YOKOHAMA NIHON-ODORI

4,790

100

4.4

-0.1

4.2

-0.1

4.6

-0.1

4,270

4,391

398

Residence-113 KOBE Women’s Student Housing

5,880

100

5.2

-0.1

5.0

-0.1

5.4

-0.1

5,700

6,006

-126

Residence-114 Prime Maison SHIBUYA

2,360

50

4.1

-0.1

3.9

-0.1

4.3

-0.1

2,190

2,232

127

Residence-115 Prime Maison HATSUDAI

2,940

80

4.2

-0.1

4.0

-0.1

4.4

-0.1

2,700

2,764

175

Residence-116 Esty Maison UEMACHIDAI

1,020

-

4.6

-

4.3

-

4.8

-

950

977

42

976

-

4.7

-

4.5

-

4.9

-

970

998

-22

Residence-118

Prime Maison SHIROKANE-TAKANAWA

4,800

110

4.1

-0.1

3.9

-0.1

4.3

-0.1

4,500

4,596

203

Residence-119

Prime Maison ICHIGAYAYAMABUSHICHO

4,220

20

4.1

-0.1

3.9

-0.1

4.3

-0.1

4,000

4,089

130

Residence-120

Esty Maison MORISHITA

643

3,334

4.4

-

4.2

-

4.6

-

628

656

-13

203,122

195,150

31,396

Residence-117 Esty Maison KOBE-SANNOMIYA

Residence Subtotal / Average

226,547（Note 7）

4.5

4.4

4.7

50

List of Fiscal Period-End Estimated Values (5)Estimated value at the endof period (Million yen)
Property No.

Retail-1

Property Name

HAMAMATSU Plaza (Note 8)

Other real estate in trust (retail property)
subtotal / average

Portfolio total / average

As of Sept.
30, 2017

2,891
2,891
229,438

Period on
period88
88（Note 7）

3,422
（Note 7）

Direct capitalization rate (%)
As of Sept.
30, 2017

5.9

Period on
period-0.3

Discount rate (%)
As of Sept.
30, 2017

5.6（Note 9）Terminal capitalization rate (%)

Period on
period-0.3

As of Sept.
30, 2017

6.0

Period on
period-0.3

Acquisition
price（Million yen）

Balance sheet
amount(Million yen)

Unrealized
gain / loss
(Million yen)

3,820

3,705

-814

5.9

5.6

6.0

3,820

3,705

-814

4.5

4.4

4.7

206,943

198,856

30,581

Note 1: Amounts of less than one million yen are rounded down.
Note 2: The “Estimated value at the end of period”, “Direct capitalization rate”, “Discount rate” and “Terminal capitalization rate” are the amount based on real estate appraisal or on real estate price survey by real estateappraisers while the “Balance sheet amount” is the amount recorded on the balance sheet as of September 30, 2017.
Note 3: The “Direct capitalization rate”, “Discount rate” and “Terminal capitalization rate” in the residence subtotal / average, other real estate in trust (retail property) subtotal / average and portfolio total / average are thesimple averages of the figures for the owned properties at the end of the fiscal period ended September 30, 2017 (the 24th fiscal period), and are rounded to the first decimal place. Also, when a part of an owned
asset is a leased land, such part is excluded from the basis of the calculation of the simple average.
Note 4: A master lease agreement with rent guarantees has been concluded with Sekiwa Real Estate Kyushu, Ltd. with regard to Prime Maison MOMOCHIHAMA. In calculating the period-end estimated value as of
September 30, 2017, the property’s discount rate until the expiry of the agreement is 4.8% (Period on period: -0.1%) and the discount rate after expiry of the agreement is 5.0% (Period on period: -0.1%). Also, amaster lease agreement with rent guarantees has been concluded with Sekiwa Real Estate Chubu, Ltd. with regard to Esty Maison HIGASHISHIRAKABE. In calculating the period-end estimated value as of
September 30, 2017, the property’s discount rate until the expiry of the agreement is 4.9% (Period on period: 0.0%) and the discount rate after expiry of the agreement is 5.0% (Period on period: -0.1%). For thesake of convenience, the above chart shows the discount rates until the expiry of the agreements.
Note 5: The Investment Corporation acquired trust beneficiary interest in real estate for Esty Maison HIGASHISHINJUKU at the acquisition price of 1,370 million yen on May 1, 2013 and started operations, but a part ofthe land (measured area: 6.62㎡) was disposed on July 29, 2016. The “Estimated value at the end of period”, ”Acquisition price” and “Balance sheet amount” as of September 30, 2017 do not include thedisposed portion.
Note 6: Part of the land of Prime Maison CENTRAL PARK (Lot: 23-32) is leased land and the income approach value for the leased land is calculated by the DCF method, and thus no “Direct capitalization rate” or“Terminal capitalization rate” for the leased land are established. Therefore, the “Direct capitalization rate” and “Terminal capitalization rate” in the above table only indicate those for the residential portion. The“Discount rate” of the leased land portion are calculated to be 4.7% (Period on period: 0.0%), at the fiscal period ended September 30, 2017 by the DCF method.
Note 7: The residence subtotal / average, other real estate in trust (retail property) subtotal / average and portfolio total / average of the “Period on period” column indicate the aggregate amount of changes of properties
owned as of the end of the 23rd FP (ended March 31, 2017).
Note 8: HAMAMATSU Plaza is a commercial complex centered on Costco Hamamatsu Warehouse, which opened on September 1, 2017, and, as of the date of this document, is comprised of the Costco Hamamatsu
Warehouse Building, Xebio Building, Akachan Honpo Building, Hamapla & Frespo Building, a management building and a gas station for Costco members in the Hamamatsu Plaza East area, and HamamatsuWest Building (being demolished as of the date of this document) as well as the Hamamatsu Plaza Sports Building (Zexis) in the Hamamatsu Plaza West area.
The Investment Corporation acquired trust beneficiary interests in real estate of HAMAMATSU Plaza other than certain buildings, etc. on July 28, 2005, and started operations, but disposed entire Hamamatsu
Plaza West area and a part of Hamamatsu Plaza East area to Sekisui House, Ltd. on March 30, 2012, and September 30, 2013, and thus holds only 49% quasi-co-ownership of trust beneficiary interests in realestate of Hamamatsu Plaza East Xebio Building and Other Portions as of the date of this document. Therefore, the “Estimated value at end of period”, “Acquisition Price” and “Balance Sheet Amount” above are
the amounts that correspond to the Investment Corporation’s 49% quasi-co-ownership, and thus do not include the disposed portion.
Note 9: As mention in Note 8 above, the Hamapla & Frespo Building and the gas station for Costco Members located in the Hamamatsu Plaza East area are leased land; therefore, the DCF method was used to
calculate the income approach value for the leased land portion, and the “Direct capitalization rate” and “Terminal capitalization rate” are not indicated. In addition, the “Discount rate” in the table above isindicated for the property excluding the Hamapla & Frespo Building and the gas station for Costco Members. The discount rates as of September 30, 2017 for leased land for the Hamapla & Frespo Building andthe gas station for Costco Members, calculated using the DCF method, are both 4.8% (period-on-period: -0.1%).

51

Overview of Interest-Bearing Debt (1)Loans
As of the date of this document
Contract
The individual loan contract dated February 25, 2013
Current
portion of
The individual loan contract dated August 27, 2013
long-termloans payable Subtotal

Interest Rate

(Note 1)

(Note 2)February 28, 2013

¥2,100 million

August 30, 2013

¥2,500 million

Drawdown Date

5 years
5 years

Fixed / Floating

Repayment Date

0.75600%

Fixed (Note 3)

February 28, 2018

0.45727%

Floating

August 31, 2018

¥4,600 million

The individual loan contract dated July 30, 2012

6 years and 7 months

August 2, 2012

¥3,882 million

1.15475%

Fixed (Note 3)

February 28, 2019

The individual loan contract dated February 5, 2013

6 years and 1 month

February 8, 2013

¥4,500 million

0.89900%

Fixed (Note 3)

February 28, 2019

The individual loan contract dated February 25, 2013

7 years

February 28, 2013

¥5,242 million

1.02225%

Fixed (Note 3)

February 28, 2020

The individual loan contract dated August 27, 2013

7 years

August 30, 2013

¥5,500 million

1.17200%

Fixed (Note 3)

August 31, 2020

The individual loan contract dated January 28, 2014

8 years and 1 monthJanuary 31, 2014

¥1,800 million

1.17350%

Fixed (Note 3)

February 28, 2022

8 years

February 28, 2014

¥4,680 million

1.11000%

Fixed (Note 3)

February 28, 2022

7 years

February 28, 2014

¥3,900 million

0.95225%

Fixed (Note 3)

February 26, 2021

6 years

February 28, 2014

¥1,550 million

0.79614%

Fixed (Note 3)

February 28, 2020

7 years

March 28, 2014

¥2,100 million

0.97300%

Fixed (Note 3)

February 26, 2021

8 years

August 29, 2014

¥5,400 million

0.96475%

Fixed (Note 3)

August 31, 2022

7 years

August 29, 2014

¥4,400 million

0.83600%

Fixed (Note 3)

August 31, 2021

8 years

February 27, 2015

¥7,100 million

0.86650%

Fixed (Note 3)

February 28, 2023

8 years

February 27, 2015

¥1,000 million

0.85250%

Fixed

February 28, 2023

7 years

February 27, 2015

¥3,350 million

0.73975%

Fixed (Note 3)

February 28, 2022

6 years

February 27, 2015

¥3,900 million

0.62800%

Fixed (Note 3)

February 26, 2021

7 years and 7 months

January 29, 2016

¥2,200 million

0.67400%

Fixed

August 31, 2023

7 years and 7 months

January 29, 2016

¥1,900 million

0.68030%

Fixed (Note 3)

August 31, 2023

7 years and 11 months

April 1, 2016

¥4,750 million

0.46864%

Floating

February 29, 2024

7 years and 11 months

April 1, 2016

¥1,750 million

0.50500%

Fixed

February 29, 2024

The individual loan contract dated February 25, 2014

Long-term
loans
payableBalance

Borrowing period

The individual loan contract dated March 25, 2014

The individual loan contract dated August 26, 2014

The individual loan contract dated February 24, 2015

The individual loan contract dated January 26, 2016

The individual loan contract dated March 29, 201652

Overview of Interest-Bearing Debt (2)Contract

The individual loan contract dated August 26, 2016

Long-Termloans
payableThe individual loan contract dated February 23, 2017

The individual loan contract dated August 28, 2017

Balance

Interest Rate

(Note 1)

(Note 2)

Fixed / Floating

Repayment Date

August 31, 2016

¥3,000 million

0.59750%

Fixed

August 29, 2025

9 years

August 31, 2016

¥600 million

0.57000%

Fixed

August 29, 2025

8 years

August 31, 2016

¥1,900 million

0.49500%

Fixed

August 30, 2024

9 years

February 28, 2017

¥4,000 million

0.77880%

Fixed

February 27, 2026

9 years

February 28, 2017

¥1,500 million

0.72500%

Fixed

February 27, 2026

8 years

February 28, 2017

¥1,800 million

0.67000%

Fixed

February 28, 2025

8 years

February 28, 2017

¥600 million

0.61000%

Fixed

February 28, 2025

3 years and 6 months

February 28, 2017

¥1,600 million

0.31000%

Fixed

August 31, 2020

8 years

August 31, 2017

¥2,528 million

0.61380%

Fixed

August 29, 2025

Borrowing period

Drawdown Date

9 years

Subtotal¥86,432 million

Total loans¥91,032 million

Investment Corporation Bonds
As of the date of this document
Name
Scheduled for First Series Unsecured Investment Corporation Bonds
redemption
within one year Subtotal

Other than
the above

Date of issuance

Balance

Interest Rate

(Note 1)

(Note 2)

Fixed / Floating

Redemption Date

February 28, 2013

¥4,000 million

0.63000%

Fixed

February 28, 2018

¥4,000 million

Second Series Unsecured Investment Corporation Bonds

February 28, 2013

¥2,000 million

1.00000%

Fixed

February 28, 2020

Third Series Unsecured Investment Corporation Bonds

February 28, 2014

¥2,500 million

0.37400%

Fixed

February 28, 2019

Fourth Series Unsecured Investment Corporation Bonds

February 28, 2014

¥3,000 million

1.06900%

Fixed

February 28, 2024

Fifth Series Unsecured Investment Corporation Bonds

August 29, 2014

¥3,000 million

0.87100%

Fixed

August 30, 2024

Subtotal¥10,500 million

Total Investment Corporation Bonds¥14,500 million

Total interest-bearing debt

¥105,532 million

Note 1: Amounts are rounded down to the nearest million yen.
Note 2: Interest rates as of the date of this document are indicated.
Note 3: 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.
Note 4: Above borrowings are unsecured and unguaranteed.

53

Overview of Unitholders as of September 30, 2017
Major Unitholders

Investment Units by Type of Owner
Number ofInvestment
Units Owned(units)Name / Company NameJapan Trustee Services Bank, Ltd.
(Trust Account)

Ratio of Investment
Units Owned to Total
Investment Units
Issued (%)

289,331

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

26.17

123,568

11.17

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

42,104

3.80

Sekisui House, Ltd.

39,000

3.52

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

27,624

2.49

Mitsubishi UFJ Trust and Banking Corporation

20,103

1.81

THE HACHIJUNI BANK, LTD.

19,964

1.80

DEUTSCHE BANK AG LOMDON-GPF CLIENTS OMNIFULL TAX 613

19,785

1.78

State Street Bank-West Pension Fund Clients-Exempt
505233

19,035

1.72

THE FUJI FIRE AND MARINE INSURANCE COMPANY,
LIMITED

17,1301.54

617,644

55.86

Owned (units)

Ratio (%)

Owned (units)

Ratio (points)

Individuals and others

107,685

9.74

96

0.01

Financial institutions

756,672

68.45

10,085

0.92

-

-

-

-

Regional banks

141,168

12.77

11,251

1.02

Trust banks

522,05047.22- 9,002- 0.8236,095

3.27

4,419

0.40

57,359

5.19

3,417

0.31

City banks

Life and non-life
insurancecompanies
Other financial
institutions
Other domestic firms

75,056

6.79- 2,317- 0.21

Foreign firms

158,124

14.30- 10,176- 0.92

7,973

0.72

2,312

0.21

Securities companies

Note: The above ratios are rounded to the second decimal place.

Number of Unitholders by Type of Owner

Individuals and others
Financial institutions

Note: The above ratios are rounded down to the second decimal place.

Change from the Previous
PeriodAs of Sept. 30, 2017
Unitholders

Total

Change from the Previous
PeriodAs of Sept. 30, 2017

City banks

Unitholders

Ratio (points)

10,087

Ratio (%)
95.17

- 91

0.07

134

1.26

2

0.03

-

-

-

-

The status of large holdings as determined by the large share holdings reports (including
reports of changes) submitted by November 7, 2017 is as follows.

Regional banks

36

0.34

-

-

Trust banks

12

0.11

1

0.01

Asset Management One
Co., Ltd.

The Bank of Japan

Life and non-life
insurancecompanies

8

0.08

2

0.02

111,123 units

55,479 units

Other financial
institutions

78

0.74

-1

- 0.00Total percentage ofownership

10.05%

5.02%

Other domestic firms

202

1.91

-4

- 0.01

Foreign firms

158

1.49

-7

- 0.05

Submission dateJune 27, 2017

Securities companies

18

0.17

-3

- 0.03

Name
Total units held

Note: The above ratios are rounded to the second decimal place.

July 21, 2017

Note: The above ratios are rounded to the second decimal place.

54

Change in Investment Unit Price and Trading Volume
Change in Investment Unit Price and Trading Volume since Sekisui House became Sponsor in March 2010
（Yen）
160,000

2,400
Sekisui House Residential Investment Corporation investment unit price (left axis)
TSE REIT Index (right axis)

120,000

1,800

80,0001,200

40,000600

0035,000

Mar.
2010

Sept.
2010

Mar.
2011

Sept.
2011

Mar.
2012

Sept.
2012

Mar.
2013

Sept.
2013

Mar.
2014

Sept.
2014

Mar.
2015

Sept.
2015

Mar.
2016

Sept.
2016

Mar.
2017

Sept.
2017

（Units）
30,000
Trading volume
25,00020,00015,00010,0005,000
0

201 0/3/31

Mar.
2010

201 0/9/30

Sept.
2010

201 1/3/31

Mar.
2011

201 1/9/30

Sept.
2011

201 2/3/31

Mar.
2012

201 2/9/30

Sept.
2012

201 3/3/31

Mar.
2013

201 3/9/30

Sept.
2013

201 4/3/31

Mar.
2014

201 4/9/30

Sept.
2014

201 5/3/31

Mar.
2015

201 5/9/30

Sept.
2015

201 6/3/31

Mar.
2016

201 6/9/30

Sept.
2016

201 7/3/31

Mar.
2017

Sept.
2017

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.

55

Overview of Asset Management Company
Overview of Asset Management Company
Corporate name Sekisui House Asset Management, Ltd.
Head office
CapitalAsset Management Fee System
Classification

FormulaApplicable
fee rate

0.22%

0.15%
per annum

3-1-31 Minami-Aoyama, Minato-ku, Tokyo
200 million yen (as of the date of this document)

Asset managementfee (1)

Amount of total assets ×
Fee rate (annual rate)

Portion up to ¥200 billion
Portion above ¥200 billion

Shareholder

Sekisui House, Ltd.

Number of
employees

37 employees (excluding part-time officers)(as of the date of this document)

Asset managementfee (2)

NOI (real estate rental income before depreciation) ×
Fee rate

Licensed for building lots and buildings transaction business
License No.(3)83732 issued by the Governor of Tokyo
Certified as an entrustment-based agency
License No.31 issued by the Minister of Land, Infrastructure,
Transportation and Tourism
Registered as a financial instruments business operator
Registration (Kinsho) No.337 issued by the Director of Kanto
Local Finance Bureau

Acquisition/
disposition fees

Acquisition or disposition price × Fee rate

Merger fee

Appraisal value of real estate-related assets inherited
through merger × Fee rate

Licenses andregistration, etc.

Maximum
fee rate

per annum

0.10%
per annum

5.0%

4.0%

0.8%

0.8%

(0.4% *)

(0.4% *)

0.8%

( ** )* The figure in parenthesis (0.4%) will be applied in cases of transactions with interested parties, etc.
** The applicable rate for the merger fee has been left undetermined as there is no specific plan for any merger.
The applicable rate will be determined in the future as needed upon discussion.

Organization Chart

Organization to discuss and decide on basic
and important compliance matters
General Meeting of Shareholders
Statutory Auditor

Compliance Committee
The Compliance Committee consists of the Compliance
Officer, President, and external experts in compliance.

Board of Directors
Compliance Committee

Investment Committee

Organization in charge of compliance
Compliance Officer

President
Risk Management andCompliance OfficeCompliance Officer
The Compliance Officer is responsible for managing theoverall compliance of the Asset Management Company.
The Compliance Officer shall be selected based on
having sufficient examining and supervising capabilities
to ensure compliance with laws and regulations by the
Asset Management Company.

Risk Management and Compliance Office
Real Estate Investment
Department

Asset Management
Department

Engineering Management
Department

IR & Financial Affairs
Department

Management
Department

The Risk Management and Compliance Office monitors
operations with regard to risk management andcompliance with laws, regulations, and various rules, etc.

56

Governance Structure of Asset Management Company
Decision Making Process
Proposals fromrespective
departments

Risk
Management
and Compliance
OfficeInvestment
Committee

Pointing out issues, etc.
Instructing amendments or withdrawal

Resolutions at
Board ofDirectors

Compliance
Committee

Pointing out issues, etc.
Instructing amendments or withdrawal

Check by the Compliance Officer

Check by external expert• Under the direction of the Compliance Officer, the Risk Management
and Compliance Office conducts a preliminary screening of
proposals which will be proposed to the Investment Committee, etc.
• When the Compliance Officer judges that there are problems in theprocess of discussions at the Investment Committee, theCompliance Officer may order the Investment Committee todiscontinue the deliberation.

• The Asset Management Company selects anexternal expert in compliance as theCompliance Committee member to improve thechecking function on conflict-of-interest
transactions, etc. from the viewpoint of experts.

In the case oftransactions
with Interested
Parties

Approval of theInvestment
Corporation’s
Board ofDirectors

Pointing out issues, etc.
Instructing amendments or withdrawal

Check by the Investment
Corporation’s Supervisory Directors• Approval of the Board of Directors, which iscomprised of the Investment Corporation's
Executive Directors and Supervisory Directors, isrequired for transactions with Interested Parties.

Standards for Transactions with Interested Parties
Matters that require approval of the Investment
Corporation’s Board of Directors

Standards for transactions

Acquisition of specified assets from Interested Parties

The acquisition price (excluding taxes, costs related to the acquisition, etc.) shall be the amount equal to orless than the real estate appraisal value, etc. by the real estate appraiser applied in the acquisition.

Disposition of specified assets to Interested Parties

The disposition price (excluding taxes, costs related to the disposition, etc.) shall be the amount equal to or
more than the real estate appraisal value by the real estate appraiser applied in the disposition.

Payment of an agency fee to Interested Parties

The agency fee to be paid shall be within the scope of reward stipulated in the Building Lots and Buildings
Transaction Business Act.

Entrusting management, etc. of real estate and otherassets to Interested Parties

The party must meet the conditions stipulated in “Selection and Management Criteria for Property
Management Companies” that was formulated separately by the Asset Management Company. (In principle,
the party’s adequacy for management will be verified once a year by an outside independent appraiser withno conflict of interest)

Conclusion of leasing contracts for real estate andother assets with Interested Parties

The lease shall be deemed to be appropriate after considering actual market conditions and standard terms
and conditions for leasing the target real estate and other assets.

Placing orders for construction work, etc. amounting to
5 million yen or more, to Interested Parties

The level of estimated price in relation to content of service to be provided etc. shall not significantly differ
from that of third parties.

57

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58

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59