We seek to invest primarily in shopping centers fordaily needs of local area customers, in order toprovide stable investment returns over the long term

Financial Results Appendix
for the 2nd Financial Period
ended Mar. 2016

May 20, 2016

Appendix 1

Key characteristics of Kenedix Retail REIT Corporation (KRR)Portfolio strategies
Investment criteria

Primary geographic target areas

Focus on the following four elements in making investment decisions:• Four major metropolitan areas,
which have relatively stable populations

Attractiveness

Location• Ability to serve particular day-to-day
needs of local area customers• Demographic composition, number ofhouseholds, competing facilities inlocal retail trade area

• Selective investments in ordinance-designated cities,
core cities and other areas for diversification

The Tokyo metropolitan area
The Greater Osaka area

Profitability

Tenant mix• Occupancy, leasing status, rent level
and lease term

• Optimal tenant mix for the property
considering tenant credit profiles andretail space usage

Target portfolio distribution (based on acquisition price)
Retail properties

100%
80%
or moreNeighborhood,community and othershopping centers fordaily needs

The Fukuoka area

Focus onthe four major
metropolitan
areas
The Greater Nagoya area

Investment in land ~Seeking additional growth opportunities~
We also seek investment opportunities in the underlying land of retail properties fordaily needs• Strong demand from retail tenants (the majority of buildings on land-only properties
held by J-REITs are retail facilities)• Maintain maximum value upon termination of lease term, as the land is expected tobe returned in its original state• Investment in lands would be limited to 20% of the portfolio (based on acquisition
price) as our general policy
Beneficial relationship for both Asset Manager and tenants
Advantages to Asset Manager

Advantages to tenants• Generation of long-term stable rents due to a decreaseof vacancy risks because tenants will own buildings
pursuant to fixed-term land lease agreements• Stabilization of rent revenue as tenants will pay
maintenance costs related to the buildings on such land
• Improvement of payout ratio as depreciation costs ofbuildings are borne by tenants• Limited downside risk related to their asset valuecaused by external factors, such as fires• Tenants that are both the lessee and property ownerbear a smaller financial burden when opening a store• Increased capital efficiency through treatment of land as
off balance sheet• Simplified procedures for interior renovation of buildings

36

Retail property trends and macroeconomic conditions (1)Demographic shift in Japan

Shrinking retailtrade area
due to aging
population andconcentrated
population in thefour major
metropolitan areas

Population share in Japan by area（%）

Projections(million people)
140

45

120

40

100

35

80

30

60

25

40

20

20

15

0

10
1990

1995

2000

2005

2010

2015

2020

2025

2030

2035

2040

Retail market volume in Japan

50
40
30
20
1995

2000

2005

2010

2015

Four major metropolitan areas

under 30
1%40

Domestic

80

30

consumption led by

60

20

60 andover

100Fabrics, apparel and accessories (right axis)
Source: Ministry of Economy, Trade and Industry

2035

2040
Other areas

61%

30s
6%

40s
12%

50s
20%

60s
33%
Source: Ministry of Internal Affairs and Communications

Basic and selective consumption trends (YoY% change)
（%）
8
6
4
2
0
-2
-4
-6
-8
-10

2030

0
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Total retail (left axis)
Groceries (right axis)

Stabledemand fordaily necessities

70 and over
28%

40
20

2025

Ownership of monetary assets by age group (as of 2009)100

the elderly

2020

Tokyo metropolitan area

Source: Ministry of Internal Affairs and Communications, National Institute of Population and Social
Security Research(JPY trillion)
50

120

Projections

1990

65 and over (left axis)
15–64 (left axis)
14 and under (left axis)
Aging rate (right axis)
Source: Ministry of Internal Affairs and Communications, National Institute of Population and Social
Security Research(JPY trillion)
140

（%）
60

Product types for physical stores or online shopping
Groceries
Medicines
Accessories/Daily commodities
Mobile phones
Pet products
Large furniture
Large electronics
Clothing
Small furniture
Cosmetics
Tickets
PCs
Small electronics
Books
CDs/DVDs/BDs

2006

2007

2008
2009
2010
Basic consumption

2011

Source: Ministry of Internal Affairs and Communications

2012
2013
2014
2015
Selective consumption

0% 10% 20% 30% 40% 50% 60% 70% 80% 90%
Purchase more frequently at physical stores

Purchase more frequently on the internet

Source: Ministry of Internal Affairs and Communications

Note: "Aging rate" refers to the percentage of the population aged 65 and older.

37

Retail property trends and macroeconomic conditions (2) Retail sales shares by store type20%

Increasein specialty
supermarket
market share

18.1

17.5

16.5

18.3

17.7

13.8

15%

12.0
9.9

10%
5%
0%
1991

1994

1997

1999

2002

Specialty suparmarkets
Department stores

2004

2007

2014

GMS
Convenience storesSource: Ministry of Economy, Trade and Industry

 Retail property opening applications by property size(%)

Decrease in sizeof retail properties

100
95
90
85
80
75
70
65
0

1.9

3.8

2.7

2.5

12.6

11.4

10.4

9.6

1.2
3.5
18.6

13.8

18.8

69.5

73.0

69.0

FY2005

FY2006

FY2007

13.4

15.3

72.1
FY20045,000㎡ or less

76.7

FY20085,000㎡-10,000㎡

0.8
4.4

21.4

73.4
FY2009

1.2
3.8
15.6

79.5

FY2010

1.0
2.6

0.7
4.3

1.1
4.3

1.3
3.1

1.2
3.0

14.6

15.3

14.5

13.1

83.1

80.4

79.3

81.0

82.7

FY2011FY2012FY2013

FY2014FY2015(as of January
30)

13.4

10,000㎡-30,000㎡

Over 30,000㎡

Source: Ministry of Economy, Trade and Industry"Compact City" policy promoted by the Japanese government through Urban Planning Guidelines
Due to factors such as an aging society, the Japanese government has promoted the "Compact City" policy that encourages the formation ofhighly compact and convenient neighborhoods with high population concentrations

Government
promotion of"Compact City"
We believe that the importance of neighborhood, community and other shopping centersthat cater to the day-to-day needs will increase going forward

38Extensive support from Sponsor and Alliance Companies
 Leveraging extensive support from Sponsor and Alliance Companies

SponsorAlliance Companies

Other
supportSupport for internal growth

Support forexternal
growthType of support

Pipeline support

●

●

●

●

Warehousing services●●

Leasing services

●

●

●

PM services

●

●

●

Environmentally-friendly technology/
knowhow●

Evaluation of operating conditions
and advisory on operations●

Personnel support●

Right to use trademarks

●

●

●

39

Overview of the Kenedix GroupThe Kenedix Group's strong commitment to J-REITs
Total AUM: JPY 1,644.3 bn (as of end of Dec. 2015) (Note)

J-REIT: JPY 1,140.4 bn

The Kenedix Group's total AUM
J-REITs(JPY bn)
1,800

Private funds / Private REIT

Proprietary investments

1,644
72

1,600
Kenedix Office Investment
Corporation

Kenedix Residential
Investment Corporation

Kenedix Retail REIT
Corporation

1,480
132

1,400

431

1,206

1,200
Japan Senior Living
Investment Corporation

Japan Logistics Fund Inc.

Premier Investment
Corporation

1,097
161

1,000

1,111
152

1,117

96

438

92

939
Private REIT / Private funds: JPY 431.3 bn

844
800

Private funds

734

172

542
548

162

Kenedix Private Investment
Corporation

496

162

600

531
1,140

432
349

Note: The Kenedix Group's total AUM includes proprietary investments of JPY 72.5 bn.

Breakdown of AUM as of end of Dec. 2015

400
Proprietaryinvestments
4.4 %

613

200
291

Private REIT・
Private funds
26.2%

J-REIT
69.4%

909

281

322

344

387

427

482

0
0.0%

20.0%

40.0%

60.0%

80.0%

100.0%

as of
as of
as of
as of
as of
as of
as of
as of
as of
Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31, Dec. 31,
2007
2008
2009
2010
2011
2012
2013
2014
2015

40

Governance structure
Decision-making process for acquisition and sale of properties

Preparation of
proposal

Asset
Investment
Department of
Retail REIT
Division

Confirmation of
proposalCompliance
Officer

Relatedparty
transaction

Deliberation
andResolution

Deliberation
andResolution

Compliance
Committee

AssetManagement
Relatedparty
Committee oftransaction
Retail REIT
Division

Other transactions

Deliberation
andResolution

Relatedparty
transaction

Our board of
directors

ReportAsset
Manager's
board ofdirectors

Other transactions

Investment in Kenedix Retail REIT by the Kenedix GroupAs of May 19, 2016, The Kenedix Group owns about 1.4% (5,750 units) of our total issued units.

Introduction of DPU-linked management fee structure
Fee linked with distribution
per unit

We believe the DPU-linked asset management fee structure will encourage the Asset Manager to place utmost
emphasis on the growth of income from portfolio properties.

The Kenedix Group's business model that benefits from our growth
Because of the importance of the J-REIT business to the Kenedix Group, we believe that our sound growth is in line with their interests.

41

Appendix 2

Detailed financial results and portfolio information

Earnings performance for the individual properties (1)Location

Tokyo metropolitan area

Property No.

T-1

T-2

T-3

T-4

T-5

T-6

T-7

T-8

Property
Name

Fululu Garden
Yachiyo

MONA
Shin-Urayasu

Passaggio
Nishiarai

Daikanyama
Address
Dixsept

Unicus Ina

Yorktown
Kita-Kaname

UnicusYoshikawaSports Club
Renaissance
Fujimidai

Super Viva
K’s Denki
Unicus Kamisato
Home Iwatsuki
Shonan(Land)(Land)
Fujisawa (Land)

Acquisition
Date

Feb. 10, 2015

Feb. 10, 2015

Feb. 10, 2015

Feb. 10, 2015

Feb. 10, 2015

Feb. 10, 2015

Feb. 10, 2015

Feb. 10, 2015

Oct. 2, 2015

14,848

8,063

5,850

5,390

4,379

4,000

3,600

2,586

Acquisition price (In millions of yen)

Price
Information

T-10

T-11

Oct. 2, 2015

4,815

Oct. 2, 2015

3,169

3,000

Percentage of total portfolio

11.3%

6.1%

4.4%

4.1%

3.3%

3.0%

2.7%

2.0%

3.7%

2.4%

2.3%

Net book value (In millions of yen)

15,026

8,275

5,934

5,441

4,381

4,018

3,642

2,591

4,890

3,210

3,043

Appraisal value (In millions of yen)

15,200

8,500

6,280

5,620

4,420

4,300

3,770

2,720

5,260

3,390

3,010

Ratio

11.0%

6.1%

4.5%

4.1%

3.2%

3.1%

2.7%

2.0%

3.8%

2.4%

2.2%

48

1（72）

1（40）

1（27）

1

1

1（10）

1

1

1

1

Leasable floor area (m )77,057.56

9,568.31

10,546.25

5,056.39

13,044.37

3,120.87

67,325.95

15,578.58

67,854.47

76,563.55

9,191.77

10,366.25

4,991.03

13,044.37(Note)

10,620.04

Leased floor area (m2)

10,537.19

3,120.87

67,325.95

15,578.58

67,854.47

99.4%

96.1%

98.3%

98.7%

100.0%

100.0%

99.2%

100.0%

100.0%

100.0%

100.0%

Operating periods

183 days

183 days

183 days

183 days

183 days

183 days

183 days

183 days

182 days

182 days

182 days(1)Rental and other operating
revenues (In thousands of yen)

741,920

503,887

309,117

263,572

132,793

138,554

72,301

Rental revenues

632,247

346,747

213,882

183,696

131,736

132,587

72,115

Other operating revenues

109,673

157,139

95,23479,875

1,057

5,967

186

(2)Property-related expenses(In thousands of yen)

290,144248,827

136,431

151,805

10,56024,967

1,454

Property management fees

142,752

83,65447,042

52,596

1,800

20

121

5

-

-

66,721

57,361

38,20733,367---

20,14625,236

13,49019,705

7,912

89

-

1,885

823

550

309

327

249

-

Number of tenants
2

Lease
Information

T-9

Occupancy ratio as of March 31,
2016

Taxes

Income andUtilities
Retained
Earnings
Repairs and maintenance
Information
Insurance
Trust fees and other expenses(3)NOI(=(1)-(2))(In thousands of yen)(4)Depreciation(In thousands of yen)(5)Rental operating income (=(3)-(4))(In thousands of yen)(6)Capital expenditures(In thousands of yen)(7)NCF (=(3)-(6))(In thousands of yen)

(Note)

24,198-(Note)(Note)(Note)

430

1,193

0

58,61981,63037,13645,825

520

451,776

255,059

172,685

111,767

122,233

111,222

113,587

71,568

116,549

82,92470,847259

81,34041,671

31,751

15,09329,42020,335

15,495

15,127---

370,435

213,388

140,934

96,673

92,81290,88698,091

56,440116,549

82,92470,84759,78899,580

996

2,124

-

-

-

-

-

-

-

391,988

155,479

171,689

109,642

122,233

111,222

113,587

71,568

116,549

82,92470,847

Note: We have not obtained consent from the tenants of the relevant property to release the information from the table.

43

Earnings performance for the individual properties (2)Location

Tokyo metropolitan area

Property No.

T-12

Greater Osaka area

T-14

O-1

Property
Name

Inageya
Unicus Konosu
Yokohama(Land)
Minamihonjuku(Land)

Gourmet City
Chiba-Chuo

BlumerMaitamonAcquisition
Date

Oct. 2, 2015

Oct. 2, 2015

Feb. 10, 2015

Feb. 10, 2015

8,389

2,685

Acquisition price (In millions of yen)

Price
Information

Oct. 2, 2015

1,700

1,442

760

O-2

O-3

O-4

O-5

O-6

Blumer
HAT Kobe

Carino Esaka

COMBOX
KomyoikeFeb. 10, 2015

Apr. 16, 2015

Oct. 2, 2015

Oct. 2, 2015

2,140

11,000

Piago Kahma
Central SquareHome Center
Takadono (Land)
Omihachiman

6,555

O-7

O-8

WelciaHankyu Oasis
Kishiwadakamori
Hirakatadeguchi(Land)
Oct. 2, 2015

6,450

Oct. 2, 2015

1,280

487

Percentage of total portfolio

1.3%

1.1%

0.6%

6.4%

2.0%

1.6%

8.4%

5.0%

4.9%

1.0%

0.4%

Net book value (In millions of yen)

1,726

1,462

788

8,494

2,727

2,168

11,585

6,612

6,502

1,333

497

Appraisal value (In millions of yen)

1,740

1,460

799

8,780

2,870

2,410

11,600

6,590

6,920

1,310

500

1.3%

1.1%

0.6%

6.3%

2.1%

1.7%

8.4%

4.8%

5.0%

0.9%

0.4%

Ratio

1

1

1

48

1

2

1（40）

1（30）

1

1

1

Leasable floor area (m2)

19,329.00

4,405.41

3,488.77

30,037.11

4,437.07

14,313.00

24,185.02

7,540.58

25,530.44

2,960.38

3,033.45

Leased floor area (m2)

19,329.00

4,405.41

3,488.77

29,888.11

4,437.07

14,313.00

23,871.33

7,474.92

25,530.44

2,960.38

3,033.45

100.0%

100.0%

100.0%

99.5%

100.0%

100.0%

98.7%

99.1%

100.0%

100.0%

100.0%

182 days

182 days

182 days

183 days

183 days

183 days

182 days

182 days(Note)(Note)

Number of tenants

Lease
Information

T-13

Occupancy ratio as of March 31,
2016

183 days

182 days

182 days(1)Rental and other operating
revenues (In thousands of yen)

41,296

487,461

491,148

302,490

225,045

Rental revenues

41,284368,394379,213

198,509

225,045

Operating periods

12

119,066

111,935

103,980-(2)Property-related expenses(In thousands of yen)

1,454

192,904

182,762

103,616

2,878

Property management fees

1,193

68,56540,096

1,790

-

20

0

Other operating revenues

Taxes

Income andUtilities
Retained
Earnings
Repairs and maintenance
Information
Insurance
Trust fees and other expenses

0(Note)(Note)

61,66918(Note)(Note)-

84,39272,65456,830--21,40916,621

3,485

-

-

825

1,030

712

678

259

24,58923,891

2,471

408(3)NOI(=(1)-(2))
39,842
34,31325,271
294,557(In thousands of yen)(4)Depreciation
9,718
50,140(In thousands of yen)(5)Rental operating income (=(3)-(4))
39,842
34,313
15,553
244,416(In thousands of yen)(6)Capital expenditures
47,062(In thousands of yen)(7)NCF (=(3)-(6))
39,842
34,31325,271
247,494(In thousands of yen)
Note: We have not obtained consent from the tenants of the relevant property to release the information from the table.

67,27890,471

308,385

198,873

222,166

38,054

11,674-

10,53449,18327,75632,894

5,201-

67,27879,937259,202

171,116

189,271

32,853

11,674--140,865

-

-

-

-

67,27890,471

167,520

198,873

222,166

38,054

11,67444

Earnings performance for the individual properties (3)Greater
Osaka area
O-9

Location
Property No.

Greater Nagoya area
N-1

N-2

Fukuoka area
N-3

F-1

Ordinance-designed cities, core cities and other areas
R-1

R-2

R-3

Sunny Noma

Roseo Mito

K’s Denki
Aomori
HontenSuper Sports
Xebio
Aomori-Chuo

R-4

Property
NameLife NishiTengachaya

Kahma Home
K’s Denki
CenterValor
Nakagawa
Nakagawa
Ichinomiya-Nishi
Tomita (Land)
Tomita (Land)

Acquisition
Date

Jan. 21, 2016

Feb. 10, 2015

Feb. 10, 2015

Feb. 10, 2015

Feb. 10, 2015

Feb. 10, 2015

Feb. 10, 2015

Feb. 10, 2015

1,505

2,311

2,174

889

1,497

10,046

1,469

898

Acquisition price (In millions of yen)

Price
Information

R-6

Ashico Town
Ashikaga

Yorktown
Shinden-Higashi

KasumiTechnopark
SakuraOct. 2, 2015

Oct. 2, 2015

Oct. 2, 2015

4,180

3,252

830

Percentage of total portfolio

1.1%

1.8%

1.7%

0.7%

1.1%

7.6%

1.1%

0.7%

3.2%

2.5%

0.6%

Net book value (In millions of yen)

1,577

2,351

2,184

907

1,513

10,112

1,493

908

4,398

3,352

859

Appraisal value (In millions of yen)

1,620

2,500

2,230

945

1,520

10,700

1,570

909

5,060

3,310

861

1.2%

1.8%

1.6%

0.7%

1.1%

7.7%

1.1%

0.7%

3.6%

2.4%

0.6%

Ratio

1

1

1

1

1

1（23）

1

1

1（26）

2

1

Leasable floor area (m2)2,679.52

48,296.15

10,083.41

12,768.77

2,047.65

2,814.67

48,296.15

10,083.41(Note)

65,616.31

9,447.48(Note)

2,814.67

2,679.52(Note)

9,447.48

Leased floor area (m2)

65,019.74

12,768.77

2,047.65

Occupancy ratio as of March 31,
2016

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

99.1%

100.0%

100.0%

Operating periods

71 days

183 days

183 days

183 days

183 days

183 days

183 days

183 days

182 days

182 days

182 days(1)Rental and other operating
revenues (In thousands of yen)

17,610371,865

260,731

Rental revenues

17,610340,409

198,987-

31,456

61,743(2)Property-related expenses(In thousands of yen)893

56,326

158,689

Property management fees

706

(Note)(Note)

Number of tenants

Lease
Information

R-5

Other operating revenues

Taxes

Income andUtilities
Retained
Earnings
Repairs and maintenance
Information

7(Note)(Note)(Note)(Note)

19,27310(Note)(Note)

40,3291-

25,16355,043-

6,859

50,166

Insurance

22

692

671

Trust fees and other expenses

157

4,327

12,477(3)NOI(=(1)-(2))
16,71664,95476,27924,929(In thousands of yen)(4)Depreciation
2,341
14,526(In thousands of yen)(5)Rental operating income (=(3)-(4))
14,37564,95461,752
24,929(In thousands of yen)(6)Capital expenditures(In thousands of yen)(7)NCF (=(3)-(6))
16,71664,95476,27924,929(In thousands of yen)
Note: We have not obtained consent from the tenants of the relevant property to release the information from the table.

43,438315,539

53,366

31,631102,041

106,463

24,612

14,251

46,194

6,365

4,894

25,39913,5602,661

29,186269,344

47,00026,736

76,642

92,903

21,950----180,171--

43,438315,539

53,366

31,631△78,129

106,463

24,61245

Balance sheets(in thousands of yen)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Consumption taxes receivable
Other
Total current assets
Non-current assets
Property, plant and equipment
Construction in progress
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, net
Intangible assets
Leasehold right trust
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Lease and guarantee deposits in trust
Long-term prepaid expenses
Long-term deposits
Total investments and other assets
Total non-current assets
Deferred assets
Organization costs
Investment unit issuance costs
Total deferred assets
Total assets

First Fiscal Period Second Fiscal Period(As of Sep. 30, 2015) (As of Mar. 31, 2016)(in thousands of yen)First Fiscal Period Second Fiscal Period(As of Sep. 30, 2015) (As of Mar. 31, 2016)

Liabilities
3,950,551
7,829,874
163,767
16,7632,071,748
10,783
14,043,489

3,882,955
10,341,252
192,030
33,750510,522
14,960,512

96,74525,766,439-518,285
25,248,154
1,118,727-35,074
1,083,653
29,194-869
28,324
26,211-1,231
24,97966,910,436
12,02593,404,319

33,894,083-1,043,077
32,851,006
1,584,525-68,990
1,515,535
29,194-1,72027,47347,611-3,41344,19899,044,234
5,583
133,488,032

171,078
2,445
173,523

528,555
2,164
530,719

10,0005,320
418,520
124,960
558,800
94,136,642

10,00036,015583,023
124,960
753,998
134,772,750

40,501
161,506
202,008
108,382,141

35,435
240,764
276,199
150,009,463

Current liabilities
Operating accounts payable
Short-term loans payable
Accounts payable-otherAccrued expenses
Income taxes payable
Advances received
Deposits received
Total current liabilities
Non-current liabilities
Long-term loans payable
Tenant leasehold and security deposits
Tenant leasehold and security deposits in trust
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities

330,055
2,000,000
257,8543,412
6,321
518,706
359,954
3,476,305

606,400
6,500,000
285,4706,520
932
748,176
136,468
8,283,968

36,350,000
20,0008,722,663
22,901
45,115,565
48,591,870

51,000,000
10,633,432
23,04534,382
61,690,859
69,974,828

57,857,000

77,606,649

1,933,270
1,933,270
59,790,270

2,427,985
2,427,985
80,034,634

Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings
Total surplus
Total unitholders’ equity
Total net assets
Total liabilities and net assets

59,790,270

80,034,634

108,382,141

150,009,463

46

Statements of income and retained earnings(in thousands of yen)First Fiscal Period(From Oct. 3, 2014
to Sep. 30, 2015)

Second Fiscal Period(From Oct. 1, 2015
to Mar. 30, 2016)

Operating revenues
Rent revenue-real estate

4,656,391

975,033

884,665

Total operating revenues

5,103,069

5,541,057

Operating expenses
Asset management feesFirst Fiscal Period(From Oct. 3, 2014
to Sep. 30, 2015)

Second Fiscal Period(From Oct. 1, 2015
to Mar. 30, 2016)

A. Rental and other operating revenues
4,128,035

Other lease business revenue

Expenses related to rent business(in thousands of yen)

2,246,179

2,235,833

313,577

405,144

Rental and other operating revenues
Rental revenues

3,643,804

3,761,328

Rental revenues from limited proprietary rights of land

220,680

598,355

Common area charges

263,549

296,707

4,128,035

4,656,391

Subtotal
Other lease business revenue

Asset custody fees

5,761

4,658

Parking space rental revenues

126,629

162,060

Administrative service fees

20,25816,454

Utility charge reimbursement

500,044453,733

Directors’ compensation

8,931

4,500

Miscellaneous

348,360

268,871

Other operating expenses

45,112

48,444

Total operating expenses

2,639,820

2,715,035

2,463,248

2,826,021

1,071

937

Operating income
Non-operating income
Interest income

Subtotal

975,033

884,665

5,103,069

5,541,057

Property management fees and facility management fees

655,263

637,809

Total rental and other operating revenues
B. Property-related expenses
Expenses related to rent business-

715

Utilities

548,099495,520

1,071

1,652

Taxes

1,280

216

144,732

201,226

Interest expenses

208,576

275,159

Insurance

9,662

10,531

Financing-related expenses

262,279

59,213

Trust fees

12,214

14,499Amortization of organization costs

10,0495,066

Depreciation

560,957

565,861

Amortization of investment unit issuance costs

43,60559,244

Others313,968

310,168

2,246,179

2,235,833

2,856,889

3,305,225

Interest on refund
Total non-operating income

Non-operating expenses

Total non-operating expenses

Repairs and maintenance524,510398,683

Ordinary income

1,939,809

2,428,991

Income before income taxes

1,939,809

2,428,991

6,539

1,075

Total property-related expenses
C. Net operating income from real estate rental business(A-B)

Income taxes
Current
Total income taxes

6,539

1,075

1,933,270

2,427,915

Retained earnings brought forward-

70

Unappropriated retained earnings

1,933,270

2,427,985

Net income

47

Statements of cash flows(in thousands of yen)
Net cash provided by (used in) operating activities
Income before income taxes

First Fiscal Period(From Oct. 3, 2014
to Sep. 30, 2015)

Second Fiscal Period(From Oct. 1, 2015
to Mar. 31, 2016)(in thousands of yen)First Fiscal Period(From Oct .3, 2014
to Sep. 30, 2015)

Second Fiscal Period(From Oct. 1, 2015
to Mar. 31, 2016)

1,939,809

2,428,991

Net cash provided by (used in) financing activities
Proceeds in short-term loans payable

10,222,500

7,700,000

Depreciation and amortization

561,321566,142

Payments in short-term loans payable-8,222,500-3,200,000

Amortization of organization costs

10,049

5,066

Proceeds from long-term loans payable

36,350,000

14,650,000

Amortization of investment unit issuance costs

43,60559,244

Proceeds from issuance of investment units

57,651,888

19,611,147

Interest income-1,071- 937--1,931,323

Interest expenses

208,576

275,159

Other

Decrease (increase) in operating accounts receivable-163,767-28,262

Dividends paid

-10,783-

Net cash provided by (used in) financing activities

95,991,104

36,829,824

3,105,407-2,071,748

1,561,226

Net increase (decrease) in cash and cash equivalents

8,150,002

Decrease (increase) in prepaid expenses-16,763-16,987

Cash and cash equivalents at the beginning of period-

8,150,002

Increase (decrease) in operating accounts payable

304,096

94,580Cash and cash equivalents at the end of period

8,150,002

11,255,410

Increase (decrease) in accounts payable-other257,854

25,738

Increase (decrease) in advances received

518,706

229,469

Increase (decrease) in deposits received

359,954-223,486

Decrease (increase) in long-term prepaid expenses-418,520-164,503

Decrease (increase) in long-term deposits-124,960-

Payment of organization costs
Other-50,551--

36,767

1,356,591

4,848,210

Decrease (increase) in consumption taxes refund receivable

SubtotalInterest income received
Interest expenses paid

1,071

937

-205,164-272,051-217-6,464

Net cash provided by (used in) operating activities
Net cash provided by (used in) investing activities
Purchase of property, plant and equipment

1,152,280

4,570,631-96,745-

Purchase of property, plant and equipment in trust-93,814,364- 40,463,688

Income taxes paid

-2,809-Purchase of intangible assets in trust-176,383-361,455

Payments for lease and guarantee deposits-10,000-

Payments for lease and guarantee deposits in trust-5,320-30,695

Purchase of intangible assets

20,000--393,751-286,205

Proceeds from tenant leasehold and security deposits in trust

9,116,415

2,185,372

Payments of restricted bank deposits in trust-3,917,992-

Proceeds from restricted bank deposits in trust

287,569

661,625-88,993,382-38,295,047

Proceeds of tenant leasehold and security deposits
Repayments of tenant leasehold and security deposits in trust

Net cash provided by (used in) investing activities

48

Appraisal value (properties as of March 31, 2016)
Income capitalization approach value
No.

T-1
T-2
T-3
T-4
T-5
T-6
T-7
T-8
T-9
T-10
T-11
T-12
T-13
T-14
O-1
O-2
O-3
O-4
O-5
O-6
O-7
O-8
O-9
N-1
N-2
N-3
F-1
R-1
R-2
R-3
R-4
R-5
R-6

Property name

Fululu Garden Yachiyo
MONA Shin-Urayasu
Passaggio Nishiarai
Daikanyama Address Dixsept
Unicus Ina
Yorktown Kita-Kaname
Unicus Yoshikawa
Sports Club Renaissance Fujimidai
Super Viva Home Iwatsuki (Land)
K’s Denki Shonan-Fujisawa (Land)
Unicus Kamisato (Land)
Unicus Konosu (Land)
Inageya Yokohama Minamihonjuku (Land)
Gourmet City Chiba-Chuo
Blumer Maitamon
Central Square Takadono (Land)
Piago Kahma Home Center Omihachiman
Blumer HAT Kobe
Carino Esaka
COMBOX Komyoike
Hankyu Oasis Hirakatadeguchi
Welcia Kishiwadakamori (Land)
Life Nishi-Tengachaya
Kahma Home Center Nakagawa Tomita (Land)
Valor Ichinomiya-Nishi
K’s Denki Nakagawa Tomita (Land)
Sunny Noma
Roseo Mito
K’s Denki Aomori Honten
Super Sports Xebio Aomori-Chuo
Ashico Town Ashikaga
Yorktown Shinden-Higashi
Kasumi Technopark Sakura
Total/Average

Appraisal
dateMar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016
Mar. 31, 2016

Direct capitalization
methodAppraisal value(JPY mn)

DCF method

Direct cap rate (%)
Previous

Latest15,100
8,360
6,200
5,450
4,430
4,220
3,690
2,640
5,210
3,410
3,010
1,730
1,460
780
8,820
2,870
2,390
11,600
6,580
6,840
1,290
500
1,620
2,500
2,200
945
1,500
10,300
1,590
901
5,050
3,320
847
137,353

15,200
8,500
6,280
5,620
4,420
4,300
3,770
2,720
5,260
3,390
3,010
1,740
1,460
799
8,780
2,870
2,410
11,600
6,590
6,920
1,310
500
1,620
2,500
2,230
945
1,520
10,700
1,570
909
5,060
3,310
861
138,674

Changes

Previous

100
140
80
170
-10
80
80
80
50
-20
0
10
0
19
-40
0
20
0
10
80
20
0
0
0
30
0
20
400
-20
8
10
-10
14
1,321

4.8
5.4
4.5
3.9
5.2
5.1
4.9
4.8
5.3
5.5
6.5
5.0
4.9
5.3
5.7
4.9
5.4
5.2
5.7
5.9
5.9
5.4
5.6
5.3
5.3

Latest

4.7
5.3
4.4
3.8
5.2
5.0
4.8
4.7
5.2
5.5
6.4
4.9
4.8
5.2
5.6
4.9
5.3
5.1
5.5
5.8
5.8
5.4
5.6
5.2
5.2

Discount rate (%)

Changes

Previous

-0.1
-0.1
-0.1
-0.1
0.0
-0.1
-0.1
-0.1
-0.1
0.0
-0.1
-0.1
-0.1
-0.1
-0.1
0.0
-0.1
-0.1
-0.2
-0.1
-0.1
0.0
0.0
-0.1
-0.1

4.6
5.1
4.3
3.7
4.9
4.9
4.7
4.6
4.7
4.6
4.7
4.6
4.0
5.1
5.6
4.4
6.2
4.8
4.6
5.0
5.5
4.0
5.0
4.8
5.1
4.8
5.0
5.3
5.6
5.6
5.2
5.4
5.1
4.9

Latest

4.5
5.0
4.2
3.6
4.9
4.8
4.6
4.5
4.7
4.6
4.7
4.6
4.0
5.0
5.6
4.4
6.1
4.7
4.5
4.9
5.4
4.0
5.0
4.8
5.0
4.8
4.9
5.2
5.5
5.5
5.2
5.4
5.0
4.8

Terminal cap rate (%)

Changes

Previous

-0.1
-0.1
-0.1
-0.1
0.0
-0.1
-0.1
-0.1
0.0
0.0
0.0
0.0
0.0
-0.1
0.0
0.0
-0.1
-0.1
-0.1
-0.1
-0.1
0.0
0.0
0.0
-0.1
0.0
-0.1
-0.1
-0.1
-0.1
0.0
0.0
-0.1
-0.1

5.0
5.6
4.7
4.1
5.4
5.3
5.1
5.0
4.6
5.5
5.7
6.7
5.2
5.1
5.5
5.9
4.6
5.1
5.6
5.6
5.8
6.1
6.1
5.6
5.8
5.5
5.4

Latest

4.9
5.5
4.6
4.0
5.4
5.2
5.0
4.9
4.6
5.4
5.7
6.6
5.1
5.0
5.4
5.8
4.6
5.1
5.5
5.5
5.7
6.0
6.0
5.6
5.8
5.4
5.3

Changes

-0.1
-0.1
-0.1
-0.1
0.0
-0.1
-0.1
-0.1
0.0
-0.1
0.0
-0.1
-0.1
-0.1
-0.1
-0.1
0.0
0.0
-0.1
-0.1
-0.1
-0.1
-0.1
0.0
0.0
-0.1
-0.1

Note: “Previous” refers to appraisal value at the previous appraisal dated September 30 on properties acquainted in 1 st period and dated July 1, 2015 on properties acquainted on 2nd period (dated Sep.1, 2015 on Life Nishi-Tengachaya).
.
“Latest” refers to the latest appraisal date. Discount rate for DCF method shows the discount rate for the nearest period.

49

Appraisal value (properties newly acquired related to 2nd PO)
Income capitalization approach value

No.

Property nameAppraisal date

Appraisal value(JPY mn)

Direct capitalization
methodDirect cap rate (%)

DCF method
Discount rate (%)

Terminal cap rate (%)

T-15

Nakamachidai Tokyu Store

Feb. 1, 2016

3,780

4.7

4.5

4.9

T-16

Central Wellness Club Nagatsuta MinamidaFeb. 1, 2016

1,880

5.1

4.9

5.3

T-17

Life Kameido

Feb. 1, 2016

1,500

4.3

4.0

4.5

O-10

Million Town Tsukaguchi (Land)

Feb. 1, 2016

3,730

-

4.4

-

N-4

Homecenter Kohnan Sunadabashi

Nov. 1, 2015

7,220

4.9

4.7

5.1

R-7

Solala Plaza

Feb. 1, 2016

5,740

5.0

4.7

5.2

R-8

P-1 plaza Tennno

Feb. 1, 2016

4,230

5.3

4.9

5.4

28,080

4.8

4.6

5.1

Total/Average

Note: Discount rate for DCF method shows the discount rate for the nearest period.

50

Unitholder information (as of March 31, 2016)
Ownership ratio by investor type

Major unitholders

1.8%
12.8%

Rank

34.2%

46.7%

Individuals andothers(45,564 units)

Financial
institutions

Other domestic
corporations

Foreigninvestors

Brokerage
firms(165,776 units) (16,023 units) (121,601 units) (6,286 units)

Number of unitholders by investor type
1.3%

2.6%

0.2%

# of
(%)(Note)
units held

1

JAPAN TRUSTEE SERVICES BANK, LTD.
(Trust Acct.)

66,16118.62%

2

THE MASTER TRUST BANK OF JAPAN, LTD.
(Trust Acct.)

33,0699.30%

3

TRUST & CUSTODY SERVICE BANK, LTD.
(Securities Investment Trust Acct.)

27,319

7.69%

4

THE BANK OF NEW YORK, NON-TREATY JASDAC
ACCOUNT

15,185

4.27%

5THE NOMURA TRUST AND BANKING CO., LTD.
(Investment Trust Acct.)

12,0993.40%

6

JP MORGAN CHASE BANK 385628

11,288

3.17%

7

STATE STREET BANK AND TRUST COMPANY
505225

10,497

2.95%

8

THE BANK OF NEW YORK MELLON SA/NV 10

5,934

1.67%

9

KENEDIX, INC.

5,750

1.61%

10

STATE STREET BANK AND TRUST COMPANY
505223

4,811

1.35%

355,250
units

4.5%

Name

0.7%

10,876
unitholders

95.3%

Individuals andothers(10,361)

Financial
institutions(74)

Other domestic
corporations(280)

Foreigninvestors(136)

Brokerage
firms
(25)

Note: figures are based on # of units and rounded down to the 2nd decimal place

51

Portfolio map
Tokyo metropolitan area
T-11
T-12

Location(by acquisition price)

T-5
T-9

Ordinancedesignatedcities, corecities and other
areas
19.2%

T-7
T-3

Life Kameido
T-17
T-1

T-8
Central Wellness Club
Nagatsuta Minamidai T-4
T-16

T-2

R-2

T-14

T-15
Nakamachidai
Tokyu Store

T-10

Fukuoka area
0.9%

R-3

Solala Plaza R-7

T-13

T-6

R-5

R-4

4 majormetropolitan
areasGreater
Nagoya area
7.9%

Tokyo
metropolitan
area
44.2%

80.8%

Greater Osaka
area
27.8%

R-1
R-6

Types of retail property(by acquisition price)

R-8
P-1 Plaza
Tenno

F-1

SM
7.2%
CSC
9.4%

Greater Nagoya area

Greater Osaka area

SS
13.0%

N-2

O-3

N-3

Million Town Tsukaguchi(Land)
O-4

O-10

O-7

N-1

Neighborhood,community andother shopping
centers fordaily needs

N-4

NSC
46.5%

100%

Homecenter Kohnan
Sunadabashi

O-5

O-1
O-9

O-2

Urban Station-Front
Shopping Centers
24.0%

Life
O-6
Nishi-Tengachaya O-8
NSC

SM

CSC

Urban Station-Front Shopping Centers

SS

52

Portfolio overview
T-1

Fululu Garden Yachiyo

T-2

MONA Shin-Urayasu

T-3

T-8

Sports Club Renaissance
Fujimidai

T-9

Super Viva Home Iwatsuki(Land)

T-10 (Land)

O-2

Central Square Takadono(Land)

O-3 Omihachiman

O-1 Blumer Maitamon

Welcia Kishiwadakamori

O-8 (Land)

O-9 Life Nishi-Tengachaya

Passaggio Nishiarai

K’s Denki Shonan-Fujisawa

T-4

Daikanyama Address Dixsept

T-5

T-6

Unicus Ina

Yorktown Kita-Kaname

T-7

Inageya Yokohama

Unicus Yoshikawa

Gourmet City

T-11 Unicus Kamisato (Land)

T-12 Unicus Konosu (Land)

T-13 Minamihonjuku (Land)

T-14 Chiba-Chuo

Piago Kahma Home Center

O-4

Blumer HAT Kobe

O-5

Carino Esaka

O-6 COMBOX Komyoike

O-7 Hirakatadeguchi

N-1

Kahma Home Center
Nakagawa Tomita (Land)

N-2

Valor Ichinomiya-Nishi

N-3

K's Denki
Nakagawa Tomita (Land)

F-1

Sunny Noma

R-1

R-4

Ashico Town
Ashikaga

R-5 Shinden-Higashi

Yorktown

R-6

Kasumi Technopark
SakuraT-15 Tokyu Store

Nakamachidai

T-16 Nagatsuta Minamidai

Hankyu Oasis

Roseo Mito

NEW

R-2

Super Sports Xebio
Aomori-Chuo

R-3

Super Sports Xebio
Aomori-Chuo

NEW

T-17 Life Kameido

NEW

Million Town

O-10 Tsukaguchi (Land)

NEW

N-4

Homecenter Kohnan
Sunadabashi

NEW

R-7

Solala Plaza

NEW

R-8

Central Wellness ClubNEW

P-1 Plaza Tenno

NEW

53

Portfolio overview
No

Name of property

Location(city/ward, prefecture)

Acquisition price
JPY

158,766 mn

JPY

166,754 mn

Average appraisal
NOI yield

5.4%

Existing properties as of Mar. 31, 2016

Total appraisal
value

Weighted averageoccupancy rate

99.7%

403

Properties
acquiredin Apr. 2016

Number of tenants

T-1
T-2
T-3
T-4
T-5
T-6
T-7
T-8
T-9
T-10
T-11
T-12
T-13
T-14
O-1
O-2
O-3
O-4
O-5
O-6
O-7
O-8
O-9
N-1
N-2
N-3
F-1
R-1
R-2
R-3
R-4
R-5
R-6
T-15
T-16
T-17
O-10
N-4
R-7
R-8

Fululu Garden Yachiyo
MONA Shin-Urayasu
Passaggio Nishiarai
Daikanyama Address Dixsept
Unicus Ina
Yorktown Kita-Kaname
Unicus Yoshikawa
Sports Club Renaissance Fujimidai
Super Viva Home Iwatsuki (Land)
K’s Denki Shonan-Fujisawa (Land)
Unicus Kamisato (Land)
Unicus Konosu (Land)
Inageya Yokohama Minamihonjuku (Land)
Gourmet City Chiba-Chuo
Blumer Maitamon
Central Square Takadono (Land)
Piago Kahma Home Center Omihachiman
Blumer HAT Kobe
Carino Esaka
COMBOX Komyoike
Hankyu Oasis Hirakatadeguchi
Welcia Kishiwadakamori (Land)
Life Nishi-Tengachaya
Kahma Home Center Nakagawa Tomita (Land)
Valor Ichinomiya-Nishi
K's Denki Nakagawa Tomita (Land)
Sunny Noma
Roseo Mito
K's Denki Aomori Honten
Super Sports Xebio Aomori-Chuo
Ashico Town Ashikaga
Yorktown Shinden-Higashi
Kasumi Technopark Sakura
Nakamachidai Tokyu Store
Central Wellness Club Nagatsuta MinamidaiLife Kameido
Million Town Tsukaguchi (Land)
Homecenter Kohnan Sunadabashi
Solala PlazaP-1 Plaza Tennno

Yachiyo, Chiba
Urayasu, Chiba
Adachi ward, Tokyo
Shibuya ward, Tokyo
Kitaadachi-gun, Saitama
Hiratsuka, Kanagawa
Yoshikawa, Saitama
Nerima ward, Tokyo
Saitama, Saitama
Fujisawa, Kanagawa
Kodama-gun, Saitama
Konosu, Saitama
Yokohama, Kanagawa
Chiba, Chiba
Kobe, Hyogo
Osaka, Osaka
Omihachiman, Shiga
Kobe, Hyogo
Suita, Osaka
Izumi, Osaka
Hirakata, Osaka
Kishiwada, Osaka
Osaka, Osaka
Nagoya, Aichi
Ichinomiya, Aichi
Nagoya, Aichi
Fukuoka, Fukuoka
Mito, Ibaraki
Aomori, Aomori
Aomori, Aomori
Ashikaga, Tochigi
Sendai, Miyagi
Tsukuba, Ibaraki
Yokohama, Kanagawa
Yokohama, Kanagawa
Koto ward, Tokyo
Amagasaki, Hyogo
Nagoya, Aichi
Sendai, Miyagi
Hamamatsu, Shizuoka

Acquisition
price(before tax,
JPY mn)14,848
8,063
5,850
5,390
4,379
4,000
3,600
2,586
4,815
3,169
3,000
1,700
1,442
760
8,389
2,685
2,140
11,000
6,555
6,450
1,280
487
1,505
2,311
2,174
889
1,497
10,046
1,469
898
4,180
3,252
830
3,360
1,724
1,450
3,723
7,140
5,720
4,010

Appraisal value(JPY mn)

15,200
8,500
6,280
5,620
4,420
4,300
3,770
2,720
5,260
3,390
3,010
1,740
1,460
799
8,780
2,870
2,410
11,600
6,590
6,920
1,310
500
1,620
2,500
2,230
945
1,520
10,700
1,570
909
5,060
3,310
861
3,780
1,880
1,500
3,730
7,220
5,740
4,230

Appraisal NOI Occupancy rateyield (%)
(%)

5.2
6.2
5.0
4.1
5.4
5.4
5.1
4.9
4.3
5.0
4.6
4.6
4.5
5.7
5.8
4.8
7.1
5.3
5.3
6.0
5.9
4.5
5.2
5.2
6.0
5.2
5.4
5.9
6.7
6.5
6.4
6.0
5.6
5.4
5.7
4.5
4.6
5.2
5.0
5.7

99.4
96.1
98.3
98.7
100.0
100.0
99.2
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.5
100.0
100.0
98.7
99.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
99.1
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0
100.0

# of
tenants

48
72
40
27
1
1
10
1
1
1
1
1
1
1
48
1
2
40
30
1
1
1
1
1
1
1
1
23
1
1
26
2
1
1
2
1
1
1
1
7

54

SM Supermarket

Properties related to 2nd PO - Life Kameido (1)A grocery supermarket located in one of the most densely populated retail trade areas in Tokyo,
with 71,000 residents within a 1 km radius
Overview
 Located approx. 1.2 km away from JR Kameido Station, which connects toTokyo Station in approx. 12 minutes, and approx. 0.8 km away from
Kameidosuijin Station
 A relatively new 2-story (one floor + one basement floor) store opened in 2000,
with a gross floor area of approx. 3,000 m2
 Rooftop parking capable of holding 24 vehicles
Acquisition Highlights
 Located in one of the most populated trade areas, with 71,000 residents within a
1 km radius
 "Kameido Residence", a large-scale condominium consisting of approx. 700
residential units is in the neighborhood
 Highly accessible by car due to its location along the National Route 14

Acquisition price

JPY1,450 mn

Shin-koiwa
Hikifune
Ueno
Hirai
Keiyo Road

Kameidosuijin

Location

Koto ward, Tokyo

Akihabara

Sobu Line
KameidoKinshicho

Access to a major station

Land area

2,185.63 m2

Gross floor area

2,929.58 m2

Approx.
12 min

Kinshicho
Station
JR Sobu Rapid Line

Hirai Station
Tobu Kameido Line

Kameido Station
JR Sobu Line

Tokyo

Core tenant

Life Corporation

Appraisal NOI yield 4.5%

Kameidosuijin
StationKameido Station

Life Kameido

Keiyo RoadTokyo Station
Metropolitan Expressway

Enlarged view55

SM Supermarket

Properties related to 2nd PO - Life Kameido (2)Location

TenantTrade area

High growth potential(thousandpeople)Population of Kameido area

Area
56

55

52

52

High population density

57

Overview

Population density(people/km2)

Foundation

21,494.0# of employees

Kameido(Note)

52

2013

2014

Source: Ministry of Internal Affairs andCommunications Statistics Bureau

Rooftop parking

22,198 (as of the end of Feb. 2015)
Supermarket chain

Listing

1st Section of Tokyo Stock ExchangeStore opening
trend

2015

Source: Koto Ward (Jan. 1 in each year)

Access

JPY584.9 bn (FY Feb. 2015)

Business

6,015.7

Continued expansion of# of stores and sales(JPY bn)
千2012Oct. 1956

Sales

0
2011

Life Corporation

58

Tokyo average
2010

Tenant's overview

Company name

12% growth60

50

Trade area(stores)(JPY bn)

80

80,0007070,00060

60,00050

50,00040

40,00030

30,00020

20,00010

10,000

0

0

250
67
64
60

200

Industry
trend

Expanding supermarket market

67,15764,97561

60,50956

175

55,15857,50854,012
151
150

155

142
133

100

Facilities

Low floor-area ratio and potential of conversion to other uses

 This property has a significant upside
potential through reconstruction toresidential facilities, etc. given its location
surrounded by densely populated
residential districts

50

0
FY2010 FY2011 FY2012 FY2013 FY2014
Sales in Tokyo (left axis)# of stores in Tokyo (right axis)
Source: Life Corporation

2010

2011

2012

2013

2014

2015

Market size of supermarket sector
Source: Japan Supermarkets Association(Note) "Kameido area" refers to 1~9 Kameido, Koto ward, Tokyo.

56

SS

Specialty Store

Properties related to 2nd PO - Homecenter Kohnan Sunadabashi
A retail property consisting of a large home and garden
store and a large sporting goods store, located in a northern
urban area of Nagoya City
TokaidoShinkansen
NagoyaCastleChayagasaka

Ozone
Nagoya

Sakae

Meijo Line

NagoyaDome

YutoritoLine

A large residential property
under development

Neighborhood A large residential property, consisting ofabout 550 residential units, is currently
under development in the neighborhood

Trade area
(thousandpeople)80

Growing population

Population of Higashi-ku, Nagoya

Motoyama

TokaidoMain Line

Enlarged view

Location

Homecenter Kohnan
Sunadabashi

Sunadabashi
Station Planned opening of a supermarket(grocery) in the development site is
expected to generate synergies with thehome and garden store of the property interms of customer traffic

75

73

74

74

74

2011

2012

2013

75

76

70

0

Planned residential
development site

Property vicinity

Chayagasaka
Station

2010

2014

2015

Source: Nagoya City Government(Dec. 1 in each year)

Acquisition price

JPY7,140 mn

Location

Nagoya, Aichi

Land area

15,118.47 m2

Gross floor area

20,329.07 m2

Core tenant

Kohnan Shoji Co., Ltd.

Appraisal NOI yield

5.2%

Access to a major station
Chayagasaka Station

AccessSubject property

A large parking area (713 cars)

Planned residential
development site

Nagoya Subway
Meijo Line

Approx.
24 minMotoyama Station

Plannedgrocery supermarket

Nagoya Subway
Higashiyama Line

Nagoya Station

TenantAcquisition Highlights
 A retail property consisting of Kohnan, a home and garden store chain operating
300 shops nationwide and a large sporting goods store
 Population in the retail trade area has been on the rise compared to 2005
(1km radius: 102.9%; 3km radius: 102.5%; 5km radius: 102.8%)

Foundation
Sales# of employees

Kohnan Shoji Co., Ltd.
Sep. 1978
JPY280.3 bn(Third ranked home and garden store chain for FY Feb. 2015)
2,652 (as of the end of Feb. 2015)

 The population is expected to further increase in the surrounding area, due toplanned construction of a large-scale condominium in the neighborhood

Business

Operation of home and garden stores Benefits from easy car access, given high car ownership rate in the subject area

Listing

1st Section of Tokyo Stock Exchange

57

UrbanStation-Front

Properties related to 2nd PO - Solala Plaza
A retail building directly accessible by a pedestrian walkway
from Sendai Station

Location
Trade area

Sendai's growing population(thousandpeople)Atago Kamisugi DoriSolala plaza(thousandhouseholds)

Population growth: +5%, # of households growth: +13%

1,090

530
Population (left axis)

1,070

510

Households (right axis)

490

1,050

470
1,030

Senseki Line
Aoba Dori
StationSendai
Station450
Sendai
Station

1,010

430

990

410

0
TohokuShinkansen

TohokuMain Line

0
2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

Source: Sendai City Government

Acquisition price

JPY5,720 mn

Location

Sendai, Miyagi(Note)

2

Land area

3,694.05 m

Gross floor area(Note)

24,768.42 m2

Core tenant

Otsuka Kagu, Ltd.

Appraisal NOI yield

5.0%

AccessEasy access to Sendai Station

 Located only a 3-minute walk from
Sendai Station, connected directly to
the west exit of the station via apedestrian walkway

Sendai Station

Subject property

 Located in an area dominated byretail and office properties

Pedestrian walkway

Acquisition Highlights
 A 15-story retail building (14 floors above ground and 1 basement floor)
connected directly to the west exit of Sendai Station via a pedestrian walkway
 The property is subject to compartmentalized ownership and the portion to beacquired is the 3rd to 8th floors, occupied by a major furniture retailer, and thespaces leading traffic to stores on the 1st and 2nd floors
 The core tenant is IDC Otsuka Kagu's only shop in Tohoku, and along with otherretail tenants, can attract customers by capitalizing on the property's locational
advantages

Tenant

IDC Otsuka Kagu's only shop in Tohoku

Company name
Foundation
Sales# of employees

Otsuka Kagu, Ltd.
Aug. 1972
JPY58.0 bn (FY Dec. 2015)
1,744 (as of the end of Dec. 2015)

Business

Furniture sales

Listing

JASDAQ(Note) For Solala Plaza, the land area and gross floor area for the entire property is shown, although we have compartmentalized ownership interests in these properties.

58

Neighborhood

NSC Shopping Center

Properties related to 2nd PO - Nakamachidai Tokyu StoreA station-front NSC in an area with high population growth andeasy access to central Tokyo
Shibuya

Futako Tamagawa

JR Nambu Line

Shinagawa

Location
Trade area

Growth of population / # of households in
Tsuzuki-ku

190

JR Tokaido Main Line

JR Yokohama Line

Nakamachidai
Tokyu Store

79

80

81

82

82

84

180

Blue Line

Nakamachidai

202

200

Green Line

80
70

300

Passengers / day
322
308

286

295

317

294

280
260

170
0

Shin-Yokohama

Solid growth in passengers using"Nakamachidai" Station(thousand (hundred
Population (left axis)
Households (right axis) households) people)
340
90
209 210 212
204 207320(thousandpeople)220

210
AzaminoSignificant population and passenger growth potential

2010 2011 2012 2013 2014 2015

Source: Yokohama City Government

00FY09 FY10 FY11 FY12 FY13 FY14

Source: Yokohama City Government

Yokohama

AccessAcquisition price

JPY3,360 mn

Location

Yokohama, Kanagawa

Land area(Note)

2,619.34 m2

Gross floor area(Note)

12,585.63 m2

Core tenant

Tokyu Store Corporation

Appraisal NOI yield

5.4%

Traffic convenience due to location in front of a station

Access to a major station
Bus Rotary

Nakamachidai Station
Yokohama Subway
Blue Line

Nakamachidai Station

Approx.
18 minSubject
property

Yokohama Station
Nakamachidai Station Ent.

Acquisition Highlights
 The portion to be acquired is the retail portion, housing a grocery supermarket
and other retail tenants, of a complex consisting of retail spaces on lower floors
and residential units on upper floors
 The property is conveniently located approx. 1 minute by foot from Nakamachidai
Station, which connects to Yokohama Station in approx. 18 minutes
 The population in the surrounding areas has been increasing:up approx. 10% in 500m, 1km and 2km radius from 2005 to 2010

TenantStability

An NSC with Tokyu Group as a core tenant A total of 4 floors (two basement floors, 1st and 2nd floors) are leased to Tokyu Store
which sells grocery, taking advantage of its location in front of a railway station
 Subleased to other tenants, including a restaurant, a specialty discount retailer, a laundry
and a dental clinic, etc., to meet diverse consumer needs
 Rent revenues from stabilized lease contracts with tenants longer than 10 years(Note) For Nakamachidai Tokyu Store the land area and gross floor area for the entire property is shown, although we have compartmentalized ownership interests in these properties

59

SS Specialty Store

Properties related to 2nd PO - Central Wellness Club Nagatsuta MinamidaiRoadside SS located in an area with high population growth,housing a health club as its core tenant
ShibuyaLocation
Trade area

AccessShinagawa

10,000

4,000

8,000

3,000

6,000

2,000

4,000

1,000

MachidaYokohama

Enlarged view Nagatsuta Station

Tsukushino
Station0
Showa University

Central Wellness Club
Nagatsuta Minamidai

JPY1,724 mn

Location

Yokohama, Kanagawa

Land area

2,876.11 m2

Gross floor area

3,994.17 m2

Core tenant

Central Sports Co., Ltd.

Appraisal NOI yield

5.7%

space capable of holding 139 vehicles
 Shuttle buses service the health club for
customers located in the surrounding areas

Haneda Airport

Nagatsuta

Acquisition priceGood visibility and access(households)  Convenient car access due to its roadside
Population (left axis)
location, with a separate parking structure
Households (right axis)
5,000(people)12,000Futako Tamagawa

High growth potential of
Nagatsuta Minamidai

Access to a major station0
2005 2007 2009 2011 2013 2015

Source: Yokohama City Government(Nov. 30 in each year)

TenantNagatsuta Station
Competitiveness
Tokyu
Den-en-toshi Line

Approx.
29 minShibuya StationLines of businessCentral Sports Co., Ltd.
Operation of Central Sports Clubs# of facilities

208 (as of Mar. 31, 2015)# of employees

1,114 (as of Mar. 31, 2015)

Listing

1st Section of Tokyo Stock Exchange

Revenue

JPY50.9 bn (FY Mar. 2015, consolidated)

Acquisition Highlights
Competitiveness

Treasure Factory Co., Ltd.

 Located on the roadside in an area enjoying high population growth, with otherretail facilities such as a sushi restaurant and a convenience store along thesame roadLines of business# of shops

82 (as of Feb. 28, 2015)

 Houses a health club as its main tenant in addition to a secondhand shop

# of employees

384 (as of Feb. 28, 2015)

 Single-lot houses and condominiums concentrate in the surrounding area,
including a condominium housing 160 units next to the property

Listing

1st Section of Tokyo Stock Exchange

Revenue

JPY10.6 bn (FY Feb. 2015, consolidated)

Operation of secondhand shops

60

Neighborhood

NSC Shopping Center

Properties related to 2nd PO - P-1 Plaza Tenno (1)Overview
 An NSC located in a large-scale retail area in northeast Hamamatsu where roadside retail facilities concentrate Houses tenants such as a local supermarket, a drug store, a relaxation spa, afootwear shop, a software rental shop, an eyeglass store, a mobile phone store
and other retails stores The retail stores surround a large parking lot capable of holding 595 vehicles,
making it highly convenient for customers visiting by car

Acquisition Highlights
 The property is located nearby other larger retail properties that we believe will
be synergistic with the well-known tenants of this property that provide daily
conveniences
 Faces a main road and benefits from good car traffic

Acquisition price

JPY4,010 mn

Tomei Expy

Hamamatsu IC

Hikiuma

Location

Hamamatsu, Shizuoka
Tenryugawa

Land area

36,218.55 m2
Hamamatsu

Gross floor area

14,467.54 m2
Enlarged view

Core tenant

Kyorindo Co., Ltd.

AEON MALL
Hamamatsu Ichino

Tenno Hospital

K's Denki

P-1 Plaza Tenno

Appraisal NOI yield 5.7%

Kasai Hwy

An NSC located in a large scale retail area in northeast
Hamamatsu where road-side retail facilities concentrate

DCM Kahma 21

61

Neighborhood

NSC Shopping Center

Properties related to 2nd PO - P-1 Plaza Tenno (2)Location

Tenants

Stable population and convenient accessTrade area

Diversified tenant mix with a competitive drug store that also sells groceries

Stable population growth

Attractiveness Hamamatsu, where headquarters/factories of major listed manufacturers such as Suzuki
Motor Corporation, Yamaha Corporation and Hamamatsu Photonics K.K. are located, hasseen stable population growthHigh ratio of young families in
Hamamatsu

Population growth in Higashi-ku, Hamamatsu(thousandpeople)130.0

40%Population

 Attractive to consumers with a diversified
tenant mix including a leisure facility(relaxation spa) in addition to a grocery
store and a drug store

129.8

129.6

129.4

30%
25%

129.6

15%

129.3

 Operates an online
shopping business toleverage the rise of ecommerce covering abroad area in
Hamamatsu
 Offers a wide range ofgoods, including
groceries, daily
necessities andmedicines

20%

129.4

 Tenant: Kyorindo Co., Ltd.
 Established in 1900
 Offers groceries, cosmetics and other daily
necessities in addition to medicines
Online shopping business Grocery supermarket focusing on
Hamamatsu area
 High brand awareness in local community

Japan avg.
Hamamatsu
Higashi-ku, Hamamatsu

Competitiveness Competitive drug store

Entetsu Store

35%

129.8

129.2

Diversified tenant mix

10%

Hamamatsu City

Kita-ku Delivery(partly) area

Tenryu-ku(partly)
Hamamatsu
HamakitaIC

Hamakita-ku

Tomei Expy
Hamamatsu IC
Higashi-ku
Naka-ku(partly)

Hamamatsu Tokaido
Shinkansen
StationMinami-ku(partly)

129.0
5%
0
2012

2013

2014

2015

Source: Hamamatsu City government(Oct. 1 in each year)

Location

Concentration of retail facilities

 Located in a large retail area where large
retail shops such as Aeon Mall (RSC), a home
appliance store and a home and garden store
concentrate

0%
24 or below

25~49

50~74

Source: Ministry of Internal Affairs andCommunications Statistic Bureau

Hamamatsu Onsen Kitanoyu
 Relaxation spa brand with 6 facilities in
Aichi, Gifu and Shizuoka Prefectures

Growing market size of drug stores(JPY bn)
5,000

Annual sales

4,300

4,500

Surrounding areas

4,000
3,500

Yoshin Elementary school

3,000

AEON MALL
Hamamatsu Ichino

3,012
2,494

2,587

2002

2004

2,500

Tenno Hospital

2,000

K's Denki

1,500

Kasai Hwy

 Facing a main road and benefits from goodcar access Limited competition with Aeon Mall bycatering to different consumer needs

75 or over

1,000
500

Subject property

0

DCM Kahma 21

Entrance

2007

2014

Source: Ministry of Economy, Trade and Industry

62

Neighborhood

NSC Shopping Center

Properties related to 2nd PO - Million Town Tsukaguchi (Land)
Location

A newly opened NSC located in a retail area as a part of thelarge-scale redevelopment project in front of JR Tsukaguchi
StationSanyo Shinkansen

Fukuchiyama
Line

Tsukaguchi

Esaka
Shin-Osaka

AshiyaOsaka

Increase in population in the surrounding area is
expected, with the planned development of over
1,200 new single-lot houses and condominiums near
the east exit of the station.
Existing residential area comprises approx. 540 unitsof condominiums or single-family homes
Convenient car access with parking area able toaccommodate 255 vehicles

Condominium
development
site

Condominium
development
site

Single-lot
塚口駅追housesdevelopment
加予定siteTBU

Condominium
development
site

Subject
property

Osaka Castle

Sanyo
Fukuchiyama
Shinkansen
HankyuLine
Itami
Million Town Tsukaguchi (Land)Line

拡大図 view
Enlarged

HankyuKobe
Line

Acquisition price

JPY3,723 mn

Location

Amagasaki, Hyogo

Land area

8,264.46 m2

Gross floor area-

Core tenant

Mandai Co., Ltd.

Appraisal NOI yield

4.6%

HankyuTsukaguchi
StationPlannedredevelopment
site

Access to a major station
Tsukaguchi Station

JR
Fukuchiyama
Line

TenantConvenience

Synergistic effects among tenants

 Synergistic effects in customer accumulation
expected among tenants such as grocery
supermarket, drug store and medical clinic
 Grocery supermarket opens until midnight

Approx.
13 minOsaka Station

Acquisition highlights

Stability

Over-20-year commercial fixed-term land lease with building owners(Reference) Benefits from investing in
land-only properties
Building is owned by tenant Opened in Feb. 2016
 Located in a retail area as a part of the large-scale redevelopment project in frontof JR Tsukaguchi Station

Building Houses a supermarket (grocery) as its main tenant, in addition to a drug store
and a medical clinic

Land The surrounding area contains existing condominiums and single-lot houses in
addition to the redevelopment projectLand rent

Land is owned by KRR

 Generation of long-term stable rents due to adecrease of vacancy risks because tenants will
own buildings pursuant to fixed-term land leaseagreements
 Stabilization of rent revenue as tenants will pay
maintenance costs related to the buildings onsuch land Improvement of payout ratio as depreciation costsof buildings are borne by tenants
 Limited downside risk related to their asset valuecaused by external factors, such as fires

63

SM Supermarket

Properties related to 2nd PO - Life Nishi-Tengachaya
Grocery supermarket located in a densely populated retailarea, with approx. 16,000 people living in a 500-meter radius
Osaka
Osaka
CastleNishi-Umeda

Nishi Tengachaya

High population density

Access The 6th most densely populated ward in
Osaka's 24 wards

Convenient access Conveniently accessible by car due to its
location facing a main route and a roof-top
parking, in addition to easy subway access

Area

Population density(people//km2)

Nishinari-ku

16,594.8

Osaka 24 wards
average

11,980.6

Tennoji
Abeno
HarukasTengachaya

Haginochaya Station
Hanazonocho
Station

Route 15
Sakai Line

Trade area

Nanba
Station

USJ

Enlarged view

LocationLife Nishi-Tengachaya
Nankai Koya Line
Nishi Tengachaya
StationSource: Ministry of Internal Affairs andCommunications Statistics Bureau

Tengachaya
StationAcquisition price

JPY1,505 mn

Location

Osaka, OsakaLand area

2,933.51 m2

Gross floor area

2,401.77 m2

Core tenant
Appraisal NOI yield

Life Corporation
5.2%

Access to a major station

TenantHanazonocho Station
Trend of store-opening

Osaka Municipal Subway
Yotsubashi Line

Nishi-Umeda Station

Approx.
16 minBy foot
Osaka Station

 Promote dominant store opening strategy in Tokyo metropolitan area and Greater Osaka area
280

106

108

103

260
240

 Opened in Aug. 2010220

 Faces a major route running through Osaka, benefiting from accessing
advantage compared to other grocery stores in the surrounding area, with rooftop
parking capable of holding 47 vehicles(stores)(JPY bn)

Acquisition highlights

 Located in a densely populated retail area, with approx. 16,000 people living in a
500-meter radius

Dominant strategy in Osaka continued store opening

200

105

98
232

94

199

206

209

110

100
95

215

90
85

0

0
FY2010FY2011
Sales (left axis)

FY2012FY2013

FY2014# of stores (right axis)

Source: Life Corporation

64Portfolio highlights (1)
Name

T-1

Fululu Garden
Yachiyo

T-2

MONA Shin-Urayasu

T-3

Passaggio Nishiarai

T-4

Daikanyama
Address Dixsept

T-5

Unicus Ina

Photo

Location
Acquisition price (JPY)

Highlights

Name

Yachiyo, Chiba

Urayasu, Chiba

Adachi ward, Tokyo

Shibuya ward, Tokyo

Kitaadachi-gun, Saitama

14,848 mn

8,063 mn

5,850 mn

5,390 mn

4,379 mn Located in front of Shin CSC in an area with
 The surrounding area has a  Occupies the retail section of  Highly competitive by
Urayasu Sta. (17 min from
population growth (40 min
significant inflow of families
a large complex facility inhousing supermarket Yaoko
Tokyo Sta. by train)
to Otemachi Sta. by train)
due to large developments
front of Daikanyama Sta.
among other tenants
 Approximately 50 stores in  Entrance to highly popular Houses a home appliance Houses sophisticated and The population in theresidential areas
the specialty store bldg.
store, an apparel store,
stylish retailers as well assurrounding area is Ito-Yokado provides online  Approx. 70 tenants, including restaurants, etc.
tenants that cater to day-toincreasing by continued
supermarkets and clothing
supermarket business
day needs of customers
residential developments
storesdelivered from this store
Yorktown
Super Viva HomeSports Club
K’s Denki
T-6
T-7 Unicus Yoshikawa
T-8 Renaissance Fujimidai
T-9
T-10 Shonan-Fujisawa (Land)
Kita-Kaname
Iwatsuki (Land)

Photo

Location
Acquisition price (JPY)

Highlights

NSC

SM

CSC

Hiratsuka, Kanagawa

Yoshikawa, Saitama

Nerima ward, Tokyo

Saitama, Saitama

Fujisawa, Kanagawa

4,000 mn

3,600 mn

2,586 mn

4,815 mn

3,169 mn

 Population increase with
 Conveniently located along a  A well-equipped Comprises a large home and  Faces major routes, which
residential developments
heavily traveled road in amembership-based healthgarden store, a supermarket gives the property a wide
 Plays an important role in the population increasing areaclub with a gym, two studios
and a food court
retail trade area
local community by housing  Houses a supermarket, Life,and a swimming pool
 A number of major routes
 More than ten years remaintenants including a
and a home and garden Large housing developments near the property potentiallyon a fixed-term land leasesupermarket, a drug store
store, Kohnan, as anchor
surrounding Fujimidai Sta.
enlarge trade areas including with K’s Holdings
and a restaurant
tenants(15min from Ikebukuro Sta.
adjacent cities
by train)
Urban Station-Front Shopping Centers

SS

65

Portfolio highlights (2)
Name

T-11

Unicus Kamisato(Land)

T-12

Unicus Konosu(Land)

Inageya Yokohama

T-13 Minamihonjuku (Land)

T-14

Gourmet City
Chiba-Chuo

T-15

Nakamachidai
Tokyu Store

Photo
NEW

Location
Acquisition price(JPY)

Highlights

Name

Kodama-gun, Saitama

Konosu, Saitama

Yokohama, Kanagawa

Chiba, Chiba

Yokohama, Kanagawa

3,000 mn

1,700 mn

1,442 mn

760 mn3,360 mn

 Underlying land of the largest  Underlying land of the largest  Underlying land of Inageya  Large daytime population
 A station-front NSC in an
NSC in Kamisato developed
NSC in Konosu developed
grocery supermarket opened due to the concentration ofarea with high population
by P&D
by P&Din March 2015
government offices in thegrowth and easy access to Competitive due to its
 Easy access and high Comprises a trade area thatarea
central Tokyo
concentration of highly
visibility by car given its
cater daily needs together
 Synergistically consisted of a  Houses a supermarket andrecognizable tenants
location facing the largest
with a restaurant and a drug grocery supermarket andother retailers that cater daily
including a supermarket andtrunk road within the relevant store nearby
clinicsneeds
a cinema complex
trade area
Central Wellness Club
Central Square
Piago Kahma Home
T-16 Nagatsuta Minamida
T-17 Life Kameido
O-1 Blumer Maitamon
O-2
O-3
Takadono (Land)
Center Omihachiman

Photo
NEW

Location
Acquisition price(JPY)

Highlights

NEW

Yokohama, Kanagawa

Koto ward, Tokyo

Kobe, Hyogo

Osaka, Osaka

1,724 mn

1,450 mn

8,389 mn

2,685 mn Located in an area with high  A supermarket located in Located within a newly A new brand supermarket
population growth, housing a one of the most densely
developed residential area
which Life Corporation
health club as its core tenant populated retail trade areas  Consists of approx. 45
opened on the land in 2015
 Convenient car access duein Tokyotenants, including a Located in a densely
to its roadside location, with  "Kameido Residence", asupermarket, an electronic
populated area bordering
good visibility
large-scale condominium
appliance store and a major
central Osakaconsisting of approx. 700
clothing store as core
 Highly accessible by car as
residential units in thetenantswellneighborhood

Omihachiman, Shiga
2,140 mn
 NSC consisted of twobuildings, Piago(supermarket) and Kahma(home and garden store)
 The trade area surrounding
Omihachiman Sta. isresidential area with young
families66

Portfolio highlights (3)
Name

O-4

Blumer HAT Kobe

O-5

Carino Esaka

O-6

COMBOX Komyoike

O-7

Hankyu Oasis
Hirakatadeguchi

O-8

WelciaKishiwadakamori (Land)

Photo

Location
Acquisition price(JPY)

Highlights

Name

Kobe, Hyogo

Suita, Osaka

Izumi, Osaka

Hirakata, Osaka

Kishiwada, Osaka

11,000 mn

6,555 mn

6,450 mn

1,280 mn

487 mn Landmark NSC in "HAT
 Attractively located near The largest retail property in  A supermarket located in a  Underlying land of a Welcia
Kobe District", a revival
Esaka Sta., only 10min fromthe central area of Komyoike highly populated area
store opened in 2015, which
symbol project from the Kobe Umeda Sta.
 Located in the area
 Approx. 100 car parking lots
also sells groceries
earthquake The retail trade area isaccessible to Namba Sta. inmake easy accessibility by  Surrounded by residential
 Houses a cinema complex, a popular among young
30 min by train
car in addition to consumers
districts, expecting
grocery store, clothing stores families
 A new condominium project
coming on footcustomers on bicycles as
and restaurants
 Core tenant is Tokyu Hands
nearby is planned
well as those by car
O-9Life NishiTengachaya

O-10

Million Town
Tsukaguchi (Land)

N-1

Kahma Home Center
Nakagawa Tomita (Land)

N-2

Valor IchinomiyaNishi

N-3

K's Denki
Nakagawa Tomita (Land)

Photo
NEW

NEW

Location

Osaka, Osaka

Amagasaki, Hyogo

Nagoya, Aichi

Ichinomiya, Aichi

Nagoya, Aichi

Acquisition price(JPY)

1,505 mn

3,723 mn

2,311 mn

2,174 mn

889 mnHighlights

 A supermarket located in a  A newly opened NSC located  Located near a number of Located in a commuter town  Located in an area 15mindensely populated retail area in an area as a part of the
major routes
for Nagoya (10 min fromfrom Nagoya Sta. by train The tenant, Life Corporation, large-scale redevelopment  Comprises an integrated
Nagoya Sta. by train) As Kahma Home Centerhas dominant strategy inproject in front of Tsukaguchi retail zone in the surrounding  NSC composed of Valor, aNakagawa Tomita,
Osaka and continues store
Sta.
area, together with asuccessful supermarket
comprises an integrated
opening Increasing in population insupermarket and a sporting
chain in the Chubu Region,
retail zone in the surrounding
the surrounding area isgoods store on the adjacent
as its core tenant, in addition area
expected, with the planned
lot
to an electronic appliancedevelopment
store and a health club67

Portfolio highlights (4)
Name

N-4

Homecenter Kohnan
Sunadabashi

F-1

Sunny Noma

R-1

Roseo Mito

R-2

K's Denki
Aomori Honten

R-3

Super Sports Xebio
Aomori-Chuo

Photo
NEW

Location
Acquisition price(JPY)

Highlights

Name

Nagoya, Aichi

Fukuoka, Fukuoka

Mito, Ibaraki

Aomori, Aomori

Aomori, Aomori

7,140 mn

1,497 mn

10,046 mn

1,469 mn

898 mn Houses a large home and Rebuilt in 2007 after enjoying  Located in a population
 Opened in 2005 in Hamada  Also in Hamada district ingarden store and a largestrong support from the local growing area with many
District in Aomori, which has
Aomori, some major routes
sporting goods store
community for 35 years
young families
the highest concentration ofbring customers from broad Located in a northern urban  The strongest performing Houses a supermarket and a retailers in Aomori
retail trade area
area of Nagoya
supermarket among other
home and garden store as The population is expected
Sunny supermarkets in thecore tenants Constructed a secondhand
to further increase in thesurrounding areasurrounding area
shop building in 2015
Ashico Town
Yorktown
Kasumi Technopark
R-4
R-5
R-6
R-7 Solala Plaza
R-8 P-1 Plaza Tennno
Ashikaga
Shinden-Higashi
Sakura

Photo
NEW

NEW

Location
Acquisition price(JPY)

Highlights

Ashikaga, Tochigi

Sendai, Miyagi

Tsukuba, Ibaraki

Sendai, Miyagi

4,180 mn

3,252 mn

830 mn5,720 mn

 A large-scale multi-tenant Located in eastern Sendai
 A 24-hour Kasumi
 A retail building directly
NSC with supermarket as aconveniently commutable tosupermarket
accessible by a pedestriancore tenant
Sendai Sta.
 The retail trade area includes walkway from Sendai Sta.
 Easily accessibility by car Houses a supermarket and a the college town of Tsukuba  Houses IDC Otsuka Kagu,
due to its location along ahome and garden store as
University
their only shop in Tohoku
major local route
core tenants
 Kasumi is headquartered in
Region Cinema reopened in March,
Tsukuba, and has a2016
dominant presence in the
area

Hamamatsu, Shizuoka
4,010 mn Located in a large scale retailarea in northeast
Hamamatsu where road-side
retail facilities concentrate Houses tenants including a
local supermarket, a drug
store and a relaxation spa

68Disclaimer
The contents in this document are provided solely for informational purposes and not intended for the purpose ofsoliciting investment in, or as a recommendation to purchase or sell, any specific products.
This document contains charts/diagrams/tables/data and others Kenedix Real Estate Fund Management (" KFM")
created based on data, indices, etc. published by third parties, in addition to the information related to Kenedix Retail
REIT Corporation (“KRR"). This document also contains the current analyses/judgments/other opinions of KFM.
KFM is a financial instruments business operator under the Financial Instruments and Exchange Act.
The information provided herein is unaudited and hence no assurance or warranties are given with respect to theaccuracy or completeness thereof. Also, please be aware that the analyses/judgments/other opinions provided by KFM
may change or cease to exist without prior notice of any kind as they are based on current assumptions and beliefs of
KFM.
Neither KRR nor KFM shall be liable for any errors/inaccuracies of the data/indices/other information published by third
parties (including the data based on the appraisal report).
This document also contains forward-looking statements and anticipation of future results for KRR. However, noguarantees are given with respect to the accuracy of these statements/anticipation.
Revised editions of this document will be posted on our website (http://www.krr-reit.com/en) should there be majorcorrections going forward.
Unless otherwise explicitly stated, the figures such as percentage, ratio, and year(s) are rounded off to largest decimal
place shown in this document, the amount of money such as JPY, Japanese Yen, is truncated at the one tenth of thenumber shown in this document.
69