English Translation
The following is an English translation of the original Japanesepress release and is being provided for informational purposes only.
September 20, 2019
To All Concerned Parties
REIT Issuer: Japan Rental Housing Investments Inc.
4-17-33 Minami Aoyama, Minato-ku, Tokyo 107-0062
Ikuo Shoda, Executive Director(Securities Code: 8986)
Asset Manager: Daiwa Real Estate Asset Management Co. Ltd.
Toshio Fukushima, President and Chief Executive Officer
Inquiries: Seiji Kimoto, Deputy Chief Corporate Division Officer
Tel: +81-3-6757-9680

Notice Concerning Acquisition of Assets（AS Residence Chiyoda、(Temporary name)
Sengoku 4-chome PJ）

Japan Rental Housing Investments Inc. (hereafter referred to as the “Investment Corporation”) hereby announces that Daiwa
Real Estate Asset Management Co. Ltd. (hereafter referred to as the “Asset Manager”), the asset manager of the Investment
Corporation, has resolved to acquire the asset described below (hereafter collectively referred to as the “Acquisition”). Details areprovided below.

I. Summary and Reasons for the Acquisition[Asset to be acquired]
Considering that certain features of the property to be acquired—including its profitability, its location in Three Major
Metropolitan Areas—will help improve the quality of the Investment Corporation’s portfolio, the Asset Manager has decided tomake the acquisition. For details, please refer to the following.

Name of Property

RegionProperty
Type(Note 3)

Appraisal Value(as of August and
September 2019)(B)(JPY thousand)Difference Between
AnticipatedAcquisition Priceand Appraisal Value(B)-(A)(JPY thousand)((A)/(B))

AnticipatedAcquisition Price(A)(JPY thousand)

AS Residence
Chiyoda (Note 1)

Three Major
Metropolitan Areas(Nagoya city, Aichi)

Studio959,000

961,000

2,000(99.8%)(Temporary name)
Sengoku 4-chome
PJ (Note 2)

23 wards of Tokyo(Bunkyo, Tokyo)

Family1,480,000

1,510,000

30,000(98.0%)

2,439,000

2,471,000

32,000(98.7%)

Total(Note 1) The Name of Property will be changed to "Gran Casa Chiyoda" on November 1, 2019.
(Note 2) The property to be acquired will be completed in December this year. The planned acquisition date for the property is April 10, 2020. The Name of
Property will be changed to "Gran Casa Bunkyo Sengoku".
(Note 3) Anticipated Acquisition Price does not include acquisition expenses, adjustments to property tax and city planning tax, and consumption tax and local
consumption tax. The price is rounded down to the nearest thousand yen. The same applies hereinafter.
(Note 4) The ratio shown with bracket in “Difference between Anticipated Acquisition Price and Appraisal Value” shows the result of dividing the anticipatedacquisition price by the appraisal value (rounded off to the first decimal).

(1) AS Residence Chiyoda
Characteristic of Property
Located a six-minute walk from Kamimaezu Station on the Nagoya Municipal Subway Meijo Line and Tsurumai Line, theproperty is a condominium with a thirteen-story, steel reinforced, concrete structure mainly targeting single workers. Withinwalking distance of Sakae-ku, a commercial district in Nagoya, the property provides a good living environment and ensures thestable supply of needs from single persons commuting to central Nagoya and corporations.
(2) (Temporary name) Sengoku 4-chome PJ
Characteristic of Property
1English Translation
The following is an English translation of the original Japanesepress release and is being provided for informational purposes only.
Located at a place where residents can use two stations on two train lines: a four-minute walk from Sengoku Station on the Toei
Mita Line, from which it is a ten-minute ride to Otemachi Station without transferring, and a twelve-minute walk from Sugamo
Station on the JR Yamanote Line providing direct access to main terminal stations, the property offers excellent access to all theimportant destinations in central Tokyo. It is a new buiding with a ten-story, steel reinforced, concrete structure and was initiallydeveloped as a condominium apartment building, meeting a wide range of needs from single persons, DINKS, families, etc. In
addition, Bunkyo-ku where the property is located is a residential district enjoying strong preference because of a number ofuniversities, education facilities and historical and cultural facilities located in the ward.

With the Acquisition and the acquisition of other asset to be acquired, the size of the Investment Corporation’s total asset is
expected to be 229.3 billion yen for the 194 portfolio properties (acquisition price base), total of 13,013 units.
(Note) The above assets to be acquired include one building to be acquired announced on May 31, 2019 and the said asset to be acquired is scheduled to beacquired on October 29, 2019.

II. Details of Anticipated Properties(1) AS Residence Chiyoda
Category of anticipatedproperty for acquisition
Location (Note 1)
Land

Building
No. of leasable units by type
Building Promoter
Building Contractor◇ Overview of the Property

Trust beneficiary interests

Trust Company(Residential indication) 2-2-27 Chiyoda, Naka-ku, Nagoya-city, Aichi(Lot number) 2-208-2 Chiyoda, Naka-ku, Nagoya-city, Aichi
Proprietary
Use Area (Note 2)
Type of ownershipownership2
FAR/Building coverage ratio (Note 3)
Area (Note 1)
383.87m
Proprietary
Use (Note 1)
Type of ownershipownership
2
Floor space (Note 1)
2,401.41m
Completion date (Note 1)
Structure type (Note 1) RC, 13-story building
72 units (1K: 72 units)
G.K. ASN First
Architect
Konoike Construction Co.,Ltd.
Verification Agency
Nagoya Branch

Sumitomo Mitsui Trust Bank,
Limitedcommercial district
500% / 80%
Condominium
November, 2007

Mirai Sekkei-Sha Co., Ltd.
Kakunin Service Co., Ltd.

Property management
HASEKO LIVENET, Inc.
company (planned)
Master lease party (planned)
G.K. Japan Rental Housing
Type of master lease (planned)
Pass through◇ Property Engeineering Report Summary (Note 8)◇ Property Lease Summary (Note 4)
Number of tenants (Note 5)
1 Engineering report company
ERI Solution, Co., Ltd.
Leasable area (Note 6)
1,796.88m2 Date of report
September 6, 2019
Leased area
1,796.88m2 Priority repairs
Monthly rent (Note 7)
4,611 thousand Near-future repairs (1 year)
Lease and guarantee deposits
2,942 thousand Far-future repairs (2~12 years)
26,250 thousand
Occupancy ratio
100% Probable maximum loss (PML)
6.5%
Special Note: Although there are several findings indicated in the engineering report, etc., an agreement has been reached with the seller tothe effect that corrective measures will be taken under the seller’s own responsibility and at the seller’s own expense.
Collateral: None(2) (Temporary name) Sengoku 4-chome PJ
Category of anticipatedproperty for acquisition
Location (Note 1)
Land

Building
No. of leasable units by type
Building Promoter
Building Contractor

Real Estate◇ Overview of the Property

Trust Company (planned)(Residential indication) (undicided) 4 Sengoku, Bunkyo-ku, Tokyo(Lot number) 4-94-11 Sengoku, Bunkyo-ku, Tokyo
Proprietary
Type of ownership
Use Area (Note 2)
ownership2
FAR/Building coverage ratio (Note 3)
Area (Note 1)
357.49m
Proprietary
Use (Note 1)
Type of ownershipownership
2
Floor space (Note 1)
1,534.27m
Completion date (Note 1)
Structure type (Note 1) RC and S, 10-story and underground 1-story building
31 units (1LDK: 10 units, 2LDK: 20 units, Retail Store: 1 unit)
Bliss Co.,Ltd.
Architect
Kashiwagi Construction Co., Ltd.

2

Verification Agency-

commercial district
400% / 80%
Condominium, Retail store
December, 2019 (planned)

Neo Sekkei Co., Ltd.
J Architecture Inspection Center
Co., Ltd.

English Translation
The following is an English translation of the original Japanesepress release and is being provided for informational purposes only.
Property management
HASEKO LIVENET, Inc.
company (planned)
Master lease party (planned)
G.K. Japan Rental Housing
Type of master lease (planned)
Pass through◇ Property Engeineering Report Summary (Note 8)◇ Property Lease Summary (Note 4)
Number of tenants (Note 5)
1 Engineering report company
ERI Solution, Co., Ltd.
Leasable area (Note 6)
1,333.39m2 Date of report
September 2, 2019
Leased area
- Priority repairs
Monthly rent (Note 7)
5,945 thousand Near-future repairs (1 year)
Lease and guarantee deposits- Far-future repairs (2~12 years)
12,430 thousand
Occupancy ratio- Probable maximum loss (PML)
5.5%
Special Note: The road on the southeastern side of the subject lot falls under city planning road (Loop No. 4 Line with a planned road width of
25 meters) and is designated as priority development line (Tokyo Municipal Government No. 19). A business decision has yet to
be made and the time of the potential business implementation, the area of land expropriation and other details have not been
determined. When a business decision is made, part of the southeastern portion of the subject lot (part of the store portion, parking
lots, etc.) will be condemned and the building may be declared unfit.
Collateral: None
(Note 1) In the Location, Area, Floor space, Structure type, Use, and Completion date fields, information is entered based on the registry and engineering report.
In the Structure type field, the following abbreviations are used: SRC (steel reinforced concrete), RC (reinforced concrete), S (steel construction).
(Note 2) In the “Use Area” column, the class of Use Area under Article 8, Paragraph 1, Item 1 of the City Planning Act (Law No. 100, 1968, including later
amendments) is listed.
(Note 3) Figures for “FAR” in the “FAR/Building coverage ratio” column show, as indicated in Article 52 of the Building Standards Act (Law No. 201 of 1950,
including later amendments) (hereafter the “Building Standads Act”), the ratio of the sum of the floor space of the building to the land area, and theupper limit as determined by city planning according to the use area. Figures for “building coverage ratio” show, as indicated in Article 53 of the
Building Standards Act, the ratio of the building area to the land area, and the upper limit as determined by city planning according to the use area.
(Note 4) The figures and information in the “Property lease summary” column show estimated appraisal value, etc. as of September 1, 2019 for the property to beacquired and information such as rent roll as of the end of August 2019.
(Note 5) If a master lease agreement is planned to be concluded with a master lease company, the number of tenants is 1.
(Note 6) “Leasable area” shows the leasable area of the anticipated properties as of September, 2019, excluding area used by storage spaces, parking spaces,
custodian’s areas, signboards, vending machines, antennas and other spaces leased to the lessee in addition to their main use, or other areas leased for the
maintenance and supervision of the relevant property (including loan for use). Furthermore, leasable area is calculated using the center line of the wall,and includes the meter boxes and pipe spaces allotted to each unit.
(Note 7) Monthly rental income (rent, common area charge, income from parking facilities, etc.) is shown in the “Monthly rent” column (rounded down to thethousands), based on the estimated appraisal value, etc. as of September 1, 2019 for the property to be acquired and information such as the rent roll as ofthe end of August 2019. Please note that at the time of the acquisition of the property, the occupancy ratio which is a prerequisite to the above estimatedfigures may be lower than the estimated level.
(Note 8) The figures in the “Property Engineering Report Summary” column are rounded down to the thousands, and the ratios are rounded to the first decimal.
Furthermore, earthquake PML data was acquired from Tokyo Marine & Nichido Fire Insurance in July 2019.

Ⅲ. Profile of the Counterparty(1) AS Residence Chiyoda
The seller of the asset to be acquired is a domestic company, whose name is not disclosed because the seller’s consent has notbeen obtained. There are no capital, human, or business relationships between the Investment Corporation or the Asset Manager
and the seller. The seller is not related party of the Investment Corporation or the Asset Manager.
The seller does not fall under the category of interested persons under the Order for Enforcement of the Act on Investment
Trusts and Investment Corporations, nor does it fall under the category of interested party, etc. under the internal rules on
dealings with interested parties of the Asset Manager.
(2) (Temporary name) Sengoku 4-chome PJ
The seller of the asset to be acquired is a domestic company, whose name is not disclosed because the seller’s consent has notbeen obtained. There are no capital, human, or business relationships between the Investment Corporation or the Asset Manager
and the seller. The seller is not related party of the Investment Corporation or the Asset Manager.
The seller does not fall under the category of interested persons under the Order for Enforcement of the Act on Investment
Trusts and Investment Corporations, nor does it fall under the category of interested party, etc. under the internal rules on
dealings with interested parties of the Asset Manager.

Ⅳ. Profile of the Property Seller
The seller of the anticipated property is not classified as a special related party of the Investment Corporation and the AssetManager.

Ⅴ. Profile of Brokerage
No brokerage.

3

English Translation
The following is an English translation of the original Japanesepress release and is being provided for informational purposes only.

Ⅵ. Funds for Acquisition
Own funds or loans
Ⅶ. Settlement Method(1) AS Residence Chiyoda
For the asset to be acquired, Lump-sum settlement at the time of acquisition.
(2) (Temporary name) Sengoku 4-chome PJ
For the asset to be acquired, an amount equivalent to 10% of the total sales price (including consumption tax and local consumptiontax) will be paid as a deposit at the time of conclusion of a purchase agreement and the remaining sales price will be settled at thetime of the execution of the purchase.

Ⅷ. Acquisition Schedule(1) AS Residence Chiyoda
・Decision of Acquisition andConclusion of Purchase Agreement : September 20, 2019
・Payment and Delivery: September 27, 2019(2) (Temporary name) Sengoku 4-chome PJ
・Decision of Acquisition, Conclusion of Purchase Agreement and Payment of Deposit : September 20, 2019
・Payment and Delivery: April 10, 2020

Ⅸ. Impact on the Investment Corporation’s Finances if Forward Commitment, etc. is Not Able to be Met
The Purchase Agreement for the asset to be acquired ((Temporary name) Sengoku 4-chome PJ) fall under the category of
forward commitments, etc. (future-dated Purchase Agreements where settlement and delivery take place a month or more after
the conclusion of the contract, and other similar contracts) provided for in the Comprehensive Guidelines for Supervision of
Financial Instruments Business Operators, etc.
Under the Purchase Agreement, if the contract is cancelled due to the Investment Corporation’s failure to perform theobligations specified in the contract, the Investment Corporation shall promptly pay 20% of the entire sales price as a penalty.
However, the Investment Corporation has ample funds of its own, and Investment Corporation considaers that the Purchase
Agreement is not likely to have a significant adverse effect on the Investment Corporation’s finances and distributions.

X. Rotation Rule between the Investment Corporation and Daiwa Residential Private Investment Corporation
The property to be acquired will be completed in an odd-numbered year in the Western calendar, and the Investment
Corporation is given priority.

Ⅺ．Forecasts
The Acquisition will have only a slight impact on the asset management condition in the fiscal period ending September 30,
2019 (from April 1, 2019 to September 30, 2019) and the fiscal period ending March 31, 2020 (from October 1, 2019 to March 31,2020), and there is no change in the asset management forecast.

4

English Translation
The following is an English translation of the original Japanesepress release and is being provided for informational purposes only.

XⅡ．Property Appraisal Summary
Property Name

AS Residence Chiyoda

Appraisal ValueJPY 961,000,000

Appraiser

Tanizawa Sogo Appraisal Co., Ltd.

Date of Appraisal

August 1, 2019

Item
Value indicated by income approach
Value indicated by the Direct Capitalization
Method(1) Total Operating Income: (a)-(b)Details

Overview, etc.

JPY thousand

916,000-

JPY thousand

979,000-

JPY thousand

56,961

Rental revenues includingcommon service fees

JPY thousand

56,429Parking fees

JPY thousand

1,500

Other revenues

JPY thousand

742

Losses from vacancies

JPY thousand

1,710

Bad debt losses

JPY thousand0

JPY thousand

12,276(a)(b)(2) Total Operating Expenses
Operation costs

JPY thousand

1,704

Utilities

JPY thousand

1,078

Repairs and maintenance expense

JPY thousand

2,189

Property management fees

JPY thousand

1,294

Tenant promotion fees, etc.

JPY thousand

1,207

Taxes and public dues

JPY thousand

3,602

Nonlife insurance

JPY thousand

116

Other expenses

JPY thousand

1,082

Rental revenues: Recurring revenues from renting, or outsourcing the managementof, the entire property or its rooms (full occupancy is assumed)
Revenues from common service fees: Revenues from collecting fees underagreements with tenants to cover expenses related to the common use space inrecurring expenses for the operation and maintenance of the property (fulloccupancy is assumed)
Revenues from renting out the parking space of the property to the tenants etc. andrevenues from renting out parking space by the hour (full occupancy is assumed)
Revenues from fees for the installation of facilities, including signs, antennas,
vending machines, revenues from one-time payments that do not need to be
returned, including key money and renewal fees, and other revenues
Reductions in revenues based on predictions of vacancies, intervals due to changesof tenants, etc.
Reductions in revenues based on predictions of bad debt
Recurring expenses incurred for the maintenance of the property, including themanagement of the building and facilities, security, and cleaning
Expenses for electricity, waters, gas, local air-conditioning heat sources, etc. inproperty management
Of expenses for repairs, improvements, etc. of the building and facilities, etc. of theproperty, recurring expenses for the usual maintenance and management of thebuilding and facilities, etc. and for the restoration of the building and facilities, etc.
that have been damaged
Expenses related to the management of the property
Expenses for intermediation, advertising, etc. while looking for new tenants andexpenses incurred for renewals and extensions of rental contracts with tenants, etc.
Property tax (land, building, depreciation assets), city planning tax (land, building)Expenses for fire insurance for the property, expenses for liability insurance thatcovers losses incurred by damage done to a third party etc. due to defects of theproperty and accidents in property management, etc.
Expenses including land rent and exclusive road use fees(3) Net Operating Income (NOI):(1)-(2)(4) Lump-sum Investment Return

JPY thousand

44,684

JPY thousand

42

Adding returns on the investment of guarantees that are like deposits in nature, etc.

(5) Capital Expenditure

JPY thousand

1,662

Of expenditures for repairs, improvements, etc. of the building and accompanying
facilities, etc. of the property, expenditures that are considered to have increased
the value or durability of the building and facilities, etc.

(6) Net Cash Flow (NCF):(3) + (4) - (5)JPY thousand

43,065-(7) Capitalization Rate(%)

Value Indicated by DCF Method

JPY thousand

4.4

(%)

4.5

Terminal Capitalization Rate

(%)

4.6

Land Ratio

JPY thousand(%)

The capitalization rate has been assessed based on a comparison with rates inneighboring areas, similar areas in the same supply-demand area, etc. and inconsideration of projections of changes in net income and the relationship withdiscount rates.

953,000

Discount Rate

Value indicated by cost approach--

Regarding the discount rate, the base yield for an apartment building wasdetermined first using the build-up method, etc. based on the yields offinancial products, and the discount rate was then assessed based on thatbase yield, taking into account individual risks associated with the subject
property.
Assessed terminal capitalization rate based on the capitalization rate,taking into account future unpredictability.

870,000

-

60.0

-

5

English Translation
The following is an English translation of the original Japanesepress release and is being provided for informational purposes only.
Property Ratio(%)

Other items of note by appraiser

40.0

-

None

Property Name

(Temporary name) Sengoku 4-chome PJ

Appraisal Value

JPY 1,510,000,000

Appraiser

Tanizawa Sogo Appraisal Co., Ltd.

Date of Appraisal

September 1, 2019

Item
Value indicated by income approach
Value indicated by the Direct Capitalization
Method(1) Total Operating Income: (a)-(b)Details

Overview, etc.

JPY thousand

1,510,000-

JPY thousand

1,540,000-

JPY thousand

72,720Rental revenues includingcommon service fees

JPY thousand

71,343Parking fees

JPY thousand

948

Other revenues

JPY thousand

3,178

Losses from vacancies

JPY thousand

2,749

Bad debt losses

JPY thousand0

JPY thousand

13,253(a)(b)(2) Total Operating Expenses
Operation costs

JPY thousand

3,678

Utilities

JPY thousand

480

Repairs and maintenance expense

JPY thousand

1,102

Property management fees

JPY thousand

1,043

Tenant promotion fees, etc.

JPY thousand

1,462

Taxes and public dues

JPY thousand

4,354

Nonlife insurance

JPY thousand

114

Other expenses

JPY thousand

1,018

Rental revenues: Recurring revenues from renting, or outsourcing the managementof, the entire property or its rooms (full occupancy is assumed)
Revenues from common service fees: Revenues from collecting fees underagreements with tenants to cover expenses related to the common use space inrecurring expenses for the operation and maintenance of the property (fulloccupancy is assumed)
Revenues from renting out the parking space of the property to the tenants etc. andrevenues from renting out parking space by the hour (full occupancy is assumed)
Revenues from fees for the installation of facilities, including signs, antennas,
vending machines, revenues from one-time payments that do not need to be
returned, including key money and renewal fees, and other revenues
Reductions in revenues based on predictions of vacancies, intervals due to changesof tenants, etc.
Reductions in revenues based on predictions of bad debt
Recurring expenses incurred for the maintenance of the property, including themanagement of the building and facilities, security, and cleaning
Expenses for electricity, waters, gas, local air-conditioning heat sources, etc. inproperty management
Of expenses for repairs, improvements, etc. of the building and facilities, etc. of theproperty, recurring expenses for the usual maintenance and management of thebuilding and facilities, etc. and for the restoration of the building and facilities, etc.
that have been damaged
Expenses related to the management of the property
Expenses for intermediation, advertising, etc. while looking for new tenants andexpenses incurred for renewals and extensions of rental contracts with tenants, etc.
Property tax (land, building, depreciation assets), city planning tax (land, building)Expenses for fire insurance for the property, expenses for liability insurance thatcovers losses incurred by damage done to a third party etc. due to defects of theproperty and accidents in property management, etc.
Expenses including land rent and exclusive road use fees(3) Net Operating Income (NOI):(1)-(2)(4) Lump-sum Investment Return

JPY thousand

59,467

JPY thousand

88

Adding returns on the investment of guarantees that are like deposits in nature, etc.

(5) Capital Expenditure

JPY thousand

1,140

Of expenditures for repairs, improvements, etc. of the building and accompanying
facilities, etc. of the property, expenditures that are considered to have increased
the value or durability of the building and facilities, etc.

(6) Net Cash Flow (NCF):(3) + (4) - (5)JPY thousand

58,416-(7) Capitalization Rate(%)

Value Indicated by DCF Method

JPY thousand

3.8-

The capitalization rate has been assessed based on a comparison with rates inneighboring areas, similar areas in the same supply-demand area, etc. and inconsideration of projections of changes in net income and the relationship withdiscount rates.

1,500,000

Discount Rate

(%)

3.9

Terminal Capitalization Rate

(%)

4.0

-

Regarding the discount rate, the base yield for an apartment building wasdetermined first using a build-up method, etc. based on the yields offinancial products, and the discount rate was then assessed based on saidbase yield, taking into account individual risks associated with thesubject property.
Assessed terminal capitalization rate based on the capitalization rate,taking into account future unpredictability.

6English Translation
The following is an English translation of the original Japanesepress release and is being provided for informational purposes only.
Value indicated by cost approach

JPY thousand

1,370,000-

Land Ratio

(%)

70.1

-

Property Ratio

(%)

29.9

-

Other items of note by appraiser*URL:

The subject matter is an appraisal of the building etc. yet to be completed.

http//www.jrhi.co.jp/en/

7English Translation
The following is an English translation of the original Japanesepress release and is being provided for informational purposes only.

(Reference Material 1)

Perspective Drawing of the Asset to be Acquired(1) AS Residence Chiyoda(2) (Temporary name) Sengoku 4-chome PJ
No Perspective Drawing because of under construction.
8

English Translation
The following is an English translation of the original Japanesepress release and is being provided for informational purposes only.

(Reference Material 2) Location of the Asset to be Acquired(1) AS Residence Chiyoda

9English Translation
The following is an English translation of the original Japanesepress release and is being provided for informational purposes only.

(2) (Temporary name) Sengoku 4-chome PJ

10

English Translation
The following is an English translation of the original Japanesepress release and is being provided for informational purposes only.

(Additional Material 1) Overview of Portfolio after the Acquisition<Number of Properties etc.>
Own Properties as oftoday (a)Total Number of Owned
Properties
Total Number of Leasable
Units
Total Leasable area

Acquisition of Property(b)Other Acquisition of
Property (Note) (c)191 properties

2 property

1 properties

194 properties

12,880 units

103 units

30 units

13,013 units

517,922.49 m2

3,130.27 m2

1,374.20 m2

522,426.96 m2(a) + (b) + (c)(Note) The above assets to be acquired include one building to be acquired announced on May 31, 2019 and the said asset to be acquired is scheduled to beacquired on October 29, 2019.The same is true below.

<Asset Size etc.>
Own Properties as oftoday (a)Total (Anticipated)
Acquisition Price

Acquisition of Property(b)Other Acquisition of
Property (Note) (c)JPY 225.4 billion

JPY 2.4 billion

JPY 1.5 billion

JPY 229.3 billion

JPY 265.4 billion

JPY 2.4 billion

JPY 1.5 billion

JPY 269.4 billion

5.7%

4.3%

4.1%

5.7%

(a) + (b) + (c)(Note 1)

Appraisal Value(Note 2)NOI Yield(Note 3)(Note 1) Total (Anticipated) Acquisition Price and Average (Anticipated) Acquisition Price per Property are calculated based on the acquisition(Anticipated) price.
(Note 2) Appraisal Value for (a) is sum of the appraisal value as of the end of the fiscal period ended March 31, 2019 and the appraisal value as of February
2019 of the assets to be acquired announced on April 11, 2019 and the appraisal value as of June 2019 of the assets to be acquired announced onJune 28, 2019 and the appraisal value as of July 2019 of the assets to be acquired announced on July 18, 2019. Appraisal Value for (b) is theappraisal value as of August 2019 and as of September 2019. Appraisal Value for (c) is the appraisal value as of May 2019 of the assets to beacquired announced on May 31, 2019.
(Note 3) NOI Yield is NOI divided by (anticipated) acquisition price. NOI for (a) is the sum of the actual results in the fiscal period ended September 30,
2018 and the actual results in the fiscal period ended March 31, 2019 and the appraisal NOI as of February 2019 of the assets to be acquired
announced on April 11, 2019 and the appraisal NOI as of June 2019 of the assets to be acquired announced on June 28, 2019 and the appraisal NOI
as of July 2019 of the assets to be acquired announced on July 18, 2019. NOI for (b) is the appraisal NOI as of August 2019 and as of September
2019. NOI for (c) is the appraisal NOI as of May 2019 of the assets to be acquired announced on May 31, 2019.

<Amount and Rate of Investment by Type (Based on (Anticipated) Acquisition Price) >StudioFamilyOwn Properties as oftoday (a)JPY 141.6 billion(62.8%)
JPY 83.7 billion(37.2%)

Acquisition of Property(b)Other Acquisition of
Property (Note) (c)JPY 0.9 billion

JPY 1.5 billion

JPY 1.4 billion-(a) + (b) + (c)JPY 144.0 billion(62.8%)
JPY 85.2 billion(37.2%)<Amount and Rate of Investment by Region (Based on (Anticipated) Acquisition Price)>
Region23 Wards of Tokyo
Three Major Metropolitan
Areas
Other Major Cities

Own Properties as oftoday (a)JPY 91.7 billion(40.7%)
JPY 95.7 billion(42.5%)
JPY 38.0 billion(16.9%)

Acquisition of Property(b)Other Acquisition of
Property (Note) (c)JPY 1.4 billion

JPY 1.5 billion

JPY 0.9 billion
-

11

-

(a) + (b) + (c)JPY 94.6 billion(41.3%)
JPY 96.6 billion(42.1%)
JPY 38.0 billion(16.6%)