(REIT) Financial Report for Fiscal Period Ended July 31, 2024
September 13, 2024
Stock Exchange Listing: Tokyo Stock Exchange
URL: https://starasia‐reit.com/en/

REIT Securities Issuer:
Securities Code:
Representative:

Star Asia Investment Corporation (SAR)
3468
Atsushi Kato, Executive Director

Asset Management Company:
Representative:
Contact:

Star Asia Investment Management Co., Ltd.
Atsushi Kato, President and CEO
Akiko Kanno, Director and CFO
TEL: 03‐5425‐1340

Scheduled date of submission of securities report:
Scheduled date of commencement of cash distribution payment:
Preparation of supplementary financial results briefing materials:
Holding of financial results briefing session:

October 30, 2024
October 15, 2024
Yes
Yes

(Amounts are rounded down to the nearest million yen)
Status of Management and Assets for Fiscal Period Ended July 31, 2024 (from February 1, 2024 to July 31, 2024)(1) Management Status(% figures are the rate of period‐on‐period increase (decrease))
Operating revenue
Operating income
Ordinary income
Net income
Fiscal period
million yen%
million yen%
million yen%
million yen%
Ended Jul. 2024
8,113
1.9
4,338
0.7
3,669
4.0
3,668
4.0
Ended Jan. 2024
7,964
14.7
4,309
19.5
3,528
14.8
3,527
14.8

1.

Net income per unit
Fiscal period
Ended Jul. 2024
Ended Jan. 2024

Ratio of net income toequityRatio of ordinary income to Ratio of ordinary income tototal assets
operating revenue
%
%
%
2.9
1.4
45.2
3.1
1.5
44.3

yen
1,546
1,518

(2) Status of Cash Distribution
Cash distribution
Total cash
per unit (notdistribution (not Cash distribution
Total cash
Cash
Ratio of cash
including cash
including cash
in excess of
distribution in
distribution
distribution to
distribution in
distribution inearnings per unit excess of earnings payout ratio
net assets
excess of earnings) excess of earnings)
Fiscal periodyenmillion yen
yenmillion yen%%
Ended Jul. 2024
1,596
3,785
‐
‐
103.2
3.0
Ended Jan. 2024
1,524
3,614
‐
‐
102.5
2.8
(Note 1) Total cash distribution differs from net income due to the reversal of reserve for temporary difference adjustment and otherfactors.
(Note 2) For the fiscal period ended January 31, 2024, cash distribution payout ratio is calculated by the following formula due tochanges in the number of investment units during the period following issuance of new investment units during the period:
Total cash distribution (not including cash distribution in excess of earnings) ÷ Net income × 100(3) Financial Position
Fiscal period
Ended Jul. 2024
Ended Jan. 2024

Total assets
million yen
258,678
259,155

Net assets
million yen
127,473
127,127

Equity ratio

Net assets per unit
%
49.3
49.1

yen
53,74053,595(4) Status of Cash FlowsNet cash provided by (used Net cash provided by (used Net cash provided by (used Cash and cash equivalentsin) operating activities
in) investing activitiesin) financing activities
at end of period
Fiscal period
million yen
million yen
million yen
million yen
Ended Jul. 2024
6,288
(702)
(4,914)
12,324
Ended Jan. 2024
5,274
(51,804)
46,396
11,653‐1‐

2. Management Status Forecast for Fiscal Period Ending January 31, 2025 (from August 1, 2024 to January 31, 2025) and Fiscal PeriodEnding July 31, 2025 (from February 1, 2025 to July 31, 2025)(% figures are the rate of period‐on‐period increase (decrease))
Operating revenue

Operating income

Ordinary income

Net income

Cash distribution
per unit (notincluding cash
distribution inexcess of earnings)

Cash distribution inexcess of earnings
per unit

million yen% million yen% million yen% million yen
%
yen
yen
Fiscal period
9,141
12.7
5,003
15.3
4,035
10.0
4,035
10.0
1,538
0
Ending Jan. 2025
8,981
(1.7)
4,934
(1.4)
4,086
1.3
4,086
1.3
1,553
0
Ending Jul. 2025
(Reference) Forecast net income per unit (Expected net income ÷ expected total number of investment units issued and outstandingat end of period)
Fiscal period ending January 31, 2025:
Expected total number of investment units issued and outstanding at end of period 2,687,000 units
Forecast net income per unit 1,501 yen
Fiscal period ending July 31, 2025:
Expected total number of investment units issued and outstanding at end of period 2,687,000 units
Forecast net income per unit 1,520 yen(Note) Cash distribution per unit calculated using the expected total number of investment units issued and outstanding at end of period above (total
number of investment units issued and outstanding as of the date of this report of 2,687,000 units).

* Other(1) Changes in Accounting Policies, Changes in Accounting Estimates, and Retrospective Restatement① Changes in accounting policies accompanying amendments to accounting standards, etc.: No② Changes in accounting policies other than ①: No③ Changes in accounting estimates: No④ Retrospective restatement: No(2) Total Number of Investment Units Issued and Outstanding① Total number of investment units
Fiscal period ended
Fiscal period ended
issued and outstanding (including own
2,372,000 units
2,372,000 units
Jul. 31, 2024
Jan. 31, 2024
investment units) at end of period② Number of own investment units at
Fiscal period ended
Fiscal period ended
0 units
0 units
end of period
Jul. 31, 2024
Jan. 31, 2024
(Note) For the number of investment units serving as the basis for calculation of net income per unit, please see “Notes on Per
Unit Information” on page 24.
* Financial reports are exempt from audits by a certified public accounting or accounting firms.
* Special Note
The management status outlook and other forward‐looking statements contained in this document are based on information thatare currently available and certain assumptions that are deemed reasonable by SAR. Accordingly, the actual management status,
etc. may differ materially due to various factors. In addition, the forecast figures are the current figures calculated under theassumptions described in “Assumptions Underlying Operating Results Forecasts for Fiscal Period Ending January 31, 2025, andFiscal Period Ending July 31, 2025” on pages 3‐5. Accordingly, the actual operating revenue, operating income, ordinary income,net income, cash distribution per unit (not including cash distribution in excess of earnings) and cash distribution in excess ofearnings per unit may vary due to acquisition/disposition of real estate, etc., trends of the real estate market, etc., fluctuations ininterest rates, or other changes in the circumstances surrounding SAR, etc. in the future. In addition, the forecast is not a guaranteeof the amount of cash distribution.

‐2‐

Assumptions Underlying Operating Results Forecasts for Fiscal Period Ending January 31, 2025, and Fiscal Period Ending July 31, 2025
Item

Assumptions

Fiscal period

Fiscal period ending January 31, 2025 (18th fiscal period): August 1, 2024 – January 31, 2025 (184 days)
Fiscal period ending July 31, 2025 (19th fiscal period): February 1, 2025 – July 31, 2025 (181 days)

It is assumed with respect to the assets held by SAR as of the date of this report (74 real estate trust
beneficiary interests, 3 mezzanine loan debts and 1 preferred equity securities (collectively, “Currently
Held Assets,” with those in the form of real estate trust beneficiary interests being referred to as“Currently Held Assets (Real Estate),” those in the form of mezzanine loan debt being referred to as
Assets under management “Currently Held Assets (Mezzanine),” and those in the form of preferred equity securities being referred
to as “Currently Held Assets (Preferred Equity)”)) that there will be no change in assets undermanagement (acquisition of new assets, sale of Currently Held Assets, etc.) before the end of the fiscal
period ending July 31, 2025.
However, in reality, assets under management may change.
SAR’s forecast for operating revenues is as follows.
Fiscal period ending
Jan. 31, 2025

Operating revenues

Fiscal period ending
Jul. 31, 2025

Operating revenue

9,141 million yen

8,981 million yen(Rental revenue)*1(8,758 million yen)

(8,913 million yen)

(Gain on sale of real estate)*2(314 million yen)

(Related to mezzanine loans)*3(37 million yen)(‐)
(36 million yen)

(Securities rents)*4(31 million yen)
(30 million yen)
*1 Rent revenues from Currently Held Assets (Real Estate) are calculated based on the leaseagreements effective as of the date of this report. Market trends and other factors are also taken
into consideration. It is also assumed that there will be no arrears or non‐payment of rent bytenants*2 Proceeds from the sale of Smile Hotel Namba, which was transferred on August 19, 2024, and Urban
Park Namba, which was transferred on September 6,2024, will be recorded in the fiscal period
ending January 31, 2025.
*3 Interest or dividend income is calculated based on the loan agreements or trust agreements, etc.
that are effective as of the date of this report. It is also assumed that no interest payments ordividend payments will be unpaid.
*4 The operating revenue is based on the premise that the assumed loan income will be generated
based on the agreements on preferred equity lending transactions, etc.

- 3 -

Item

Assumptions
Expenses related to the rent business, which are the main operating expenses, are expected to be as
follows.
Fiscal period ending Fiscal period ending
Jan. 31, 2025
Jul. 31, 2025

Operating expenses

Expenses related to rent business

3,317 million yen

3,246 million yen(Taxes and dues)*1(600 million yen)(644 million yen)

(Repair expenses)*2(303 million yen)(244 million yen)

(Depreciation)*3(1,142 million yen)
(1,167 million yen)
*1 Taxes and dues for the trust beneficiary interests for five assets (real estate) acquired (the “Assets
acquired”) which were acquired on August 16, 2024 and August 30, 2024 are or to be prorated
between the seller and SAR upon acquisition or afterwards. In SAR, the amount based on the period
proration is included in the acquisition cost, and property taxes, city planning taxes, and other publiccharges for FY2024 related to the Assets acquired will not be recorded as expenses in the fiscal
period ending January 31, 2025. They will be posted from the fiscal period ending July 31, 2025.
*2 Expenditures for repair and maintenance are estimated based on the repair and maintenance plan
prepared by Star Asia Investment Management Co., Ltd. (the “Asset Manager”). However, the actual
expenditures for repair and maintenance for the fiscal periods could differ significantly from theestimated amounts, as urgent expenditures due to damage to buildings may arise due to
unexpected factors, and because such expenditure amounts generally tend to vary significantly fromyear to year, and do not arise regularly.
*3 The depreciation, including ancillary costs, is calculated using the straight‐line method.
Operating expenses other than expenses related to the rent business are expected to be as follows.
Fiscal period ending Fiscal period ending
Jan. 31, 2025
Jun. 31, 2025
Operating expenses(Excluding expenses related to rent
business)

NOI (Net Operating
Income)819 million yen

800 million yen

Total NOI of the entire portfolio is expected to be as follows.
Fiscal period ending
Jan. 31, 2025

Fiscal period ending
Jun. 31, 2025

NOI*6,583 million yen* NOI is calculated by using the following calculation method.
NOI = rent revenue – rent expenses (excluding depreciation)
Non‐operating expenses are expected to be as follows.
Fiscal period ending
Jan. 31, 2025

Non‐operating expenses

6,833 million yen

Fiscal period ending
Jul. 31, 2025

Non‐operating expenses

967 million yen

847 million yen(Interest expenses)(662 million yen)

(675 million yen)

(3 million yen)

(3 million yen)(Interest expenses on investment
corporation bonds)(Borrowing related expenses)(278 million yen)(145 million yen)(Amortization of investment
corporation bond issuance costs)(1 million yen)

(1 million yen)(Amortization of investment unit
issuance costs)(22 million yen)

(22 million yen)

- 4 -

Item

Assumptions
The assumptions for interest‐bearing liabilities are as follows.
End of the fiscal
period ending Jan.
31, 2025
Borrowings

Debt financing andinvestment corporation
bonds

Investment units

137,280 million yen

End of the fiscal
period ending Jul. 31,
2025
136,480 million yen

Investment corporation bonds
1,000 million yen
1,000 million yen
As of the date of this report, SAR has outstanding debt of 139,880 million yen and outstanding
investment corporation bonds of 1,000 million yen.
Of the debt outstanding as of the date of this report, 1,200 million yen is planned to be prepaid during
the fiscal period ending January 31, 2025, using the transfers of Smile Hotel Namba and Urban Park
Namba as repayment resources, and 800 million yen is planned to be prepaid during the fiscal period
ending July 31, 2025, using refunds of consumption tax, etc.
Other than the above, it is assumed that those with repayment dates falling in the fiscal period ending
January 31, 2025, and the fiscal period ending July 31, 2025, will be fully refinanced.
The assumptions for the total number of investment units issued and outstanding are as follows.
End of the fiscal
End of the fiscal
period ending Jan. period ending Jul. 31,
31, 2025
2025
Total number of investment units
2,687,000 units
2,687,000 units
issued and outstanding
It is assumed that the total number of investment units issued and outstanding will be 2,687,000 units,
the number as of the date of this report.
SAR calculates its distribution per unit (excluding distributions in excess of earnings) pursuant to its cash
distributions policy as set forth in its Articles of Incorporation.
As for the reserve for temporary difference adjustment, SAR plans to continuously reverse 1% or moreof the initial reserve in each fiscal period and use it mainly to mitigate any negative impact on
distributions caused by temporary decrease in income or incurred expenses and to avoid theoccurrence of corporate and other tax expenses as a result of any differences between tax andaccounting.
Cash distributions are expected to be as follows.
Fiscal period ending Fiscal period ending
Jan. 31, 2025
Jul. 31, 2025

Net income
4,035 million yen
4,086 million yen
Cash distribution per unit
Total
cash
distribution
4,132
millionyen
4,172 million yen(not including cash
Cash distributions per unit
1,538 yen
1,553 yen
distribution in excess ofearnings)
With respect to cash distribution for the fiscal period ending January 2025, it is assumed that a total of
4,132 million yen (1,538 yen per unit) will be distributed, which is the sum of an estimated net incomeof 4,035 million yen, an expected amount of reversal of reserve for temporary difference adjustment of
88 million yen and a portion of retained earnings brought forward of 8 million yen.
With respect to cash distribution for the fiscal period ending July 31, 2025, it is assumed that a total of
4,172 million yen (1,553 yen per unit) will be distributed, which is a maximum integer multiple of the
expected total number of investment units issued and outstanding at the end of the period within thesum of an estimated net income of 4,086 million yen and an expected amount of reversal of reserve fortemporary difference adjustment of 88 million yen.
The distribution per unit may change due to various factors including changes to the assets undermanagement, changes to rent revenues given movements, etc. of tenants, or the occurrence of
unexpected repairs.
Cash distributions in
SAR has no plans to make distributions in excess of earnings as of the date of this report.
excess of earnings per unit

Other

SAR assumes that no amendments affecting the above forecast numbers will be made to relevant laws
and regulations, tax policies, accounting standards, listing rules, rules of The Investment Trusts
Association, Japan, etc.
SAR assumes that there will be no unforeseen material change in general economic conditions or realestate market conditions, etc.

- 5 -

3. Financial Statements(1) Balance Sheet(Unit: thousand yen)
16th fiscal period(As of January 31, 2024)
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
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
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
Intangible assets
Leasehold rights in trust
Total intangible assets
Investments and other assets
Investments in other securities of subsidiaries
and associates
Investment securities
Long‐term prepaid expenses
Leasehold and guarantee deposits
Leasehold and guarantee deposits in trust
Other
Total investments and other assets
Total non‐current assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets
Total assets- 6 -17th fiscal period(As of July 31, 2024)

2,466,478
9,186,964
319,557
276,610
1,245,234
18,49813,513,345

3,379,427
8,945,505
443,175
312,802‐32,807
13,113,718

114
(114)
0
72,991,822(7,735,645)
65,256,177
37,679(8,703)
28,975306,175(58,216)
247,958
150,147(54,677)
95,470169,768,470
170
235,397,221

114
ሺ114)
0
73,691,762
ሺ8,733,016)
64,958,746
43,768
ሺ10,290)
33,477
338,544
ሺ74,087)
264,457
193,701
ሺ66,089)
127,611
169,771,175‐
235,155,469

6,251,893
6,251,893

6,243,459
6,243,459

1,588,015

1,588,015

1,170,000
542,728
10,239263,988343,228
3,918,199
245,567,314

1,170,000
479,515
10,239263,988
601,063
4,112,822
245,511,751

9,522
65,14974,672
259,155,332

8,502
44,337
52,840258,678,309

(Unit: thousand yen)
16th fiscal period(As of January 31, 2024)
Liabilities
Current liabilities
Operating accounts payable
Short‐term borrowings
Current portion of long‐term borrowings
Accounts payable ‐ otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities
Non‐current liabilities
Investment corporation bonds
Long‐term borrowings
Leasehold and guarantee deposits received
Leasehold and guarantee deposits received in trust
Asset retirement obligations
Other
Total non‐current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unitholders’ capital surplus
Voluntary reserve
Reserve for temporary difference
adjustment
Total voluntary reserve
Unappropriated retained earnings (undisposed
loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

*2

*1

- 7 -

17th fiscal period(As of July 31, 2024)

983,9081,300,000
13,285,000
664,966
96,918605
48,4081,028,917
26,846
17,435,570

794,335
1,000,000
11,085,000
669,967
107,831605
438,633
1,160,537
32,356
15,289,267

1,000,000
107,555,000
4,053
5,915,288
98,96918,825
114,592,137
132,027,707

1,000,000
108,755,000
2,808
6,057,696
99,915‐
115,915,419
131,204,686

89,316,185

89,316,185

25,132,218

25,132,218

8,446,674*2

8,357,762

8,446,674

8,357,762

3,909,364

4,052,316

37,488,257
126,804,443

37,542,297
126,858,483

323,181
323,181
127,127,624
259,155,332

615,139
615,139
127,473,622
258,678,309*1

(2) Statement of Income and Retained Earnings(Unit: thousand yen)
16th fiscal period
From: August 1, 2023
To: January 31, 2024
Operating revenue
Rental revenue
Other lease business revenue
Gain on sale of real estate
Other revenue
Total operating revenue
Operating expenses
Expenses related to rent business
Asset management fee
Asset custody and administrative service fees
Directors’ compensations
Other operating expenses
Total operating expenses
Operating income
Non‐operating income
Interest income
Reversal of unpaid distribution
Interest on refund
Other
Total non‐operating income
Non‐operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses
Amortization of investment corporation bond issuancecosts
Amortization of investment unit issuance costs
Total non‐operating expenses
Ordinary income
Income before income taxes
Income taxes ‐ current
Total income taxes
Net income
Retained earnings brought forward
Unappropriated retained earnings (undisposed loss)

*1
*1
*2

*1

- 8 -

17th fiscal period
From: February 1, 2024
To: July 31, 2024

7,077,860
447,056
374,516
65,436
7,964,869*1

2,946,506
512,727
48,711
2,400
144,769
3,655,114
4,309,754*1*1

7,635,803
412,199‐
65,782
8,113,786
3,055,846
542,424
50,525
2,400
123,739
3,774,935
4,338,850

58
1,583
‐
‐
1,642

62
1,163
906
0
2,132

463,491
3,500
294,089

504,833
3,500
141,244

1,020

1,020

20,812782,913
3,528,484
3,528,484
605
605
3,527,879
381,4853,909,364

20,812
671,4093,669,572
3,669,572
605
605
3,668,967
383,349
4,052,316

(3) Statement of Unitholders’ Equity
16th fiscal period (from August 1, 2023 to January 31, 2024)(Unit: thousand yen)
Unitholders’ equity
Surplus
Voluntary reserve
Unitholders’capitalBalance at beginning of
the period

66,123,367

Unitholders’capital surplus

Reserve fortemporarydifference
adjustment

Total voluntary
reserve

Unappropriatedretained earnings(undisposed loss)

Total surplus

Total unitholders’equity25,132,218

8,535,586

8,535,586

3,340,372

37,008,177

103,131,545

Changes of items during
the period
Issuance of new
investment units

23,192,817

23,192,817

Dividends fromsurplus
Reversal of reserve fortemporary difference
adjustment(88,912)(88,912)Net income(3,047,798)(3,047,798)(3,047,798)

88,912‐‐

3,527,879

3,527,879

3,527,879

Net changes of items
other thanunitholders’ equity
Total changes of items
during the period
Balance at end of theperiod*1

23,192,817‐(88,912)(88,912)568,992

480,080

23,672,898

89,316,185

25,132,218

8,446,674

8,446,674

3,909,364

37,488,257

126,804,443

Valuation and translation
adjustments

Balance at beginning of
the period

Deferred gains orlosses on hedges

Total valuationand translation
adjustments

Total net assets

92,917

92,917103,224,463

Changes of items during
the period
Issuance of new
investment units

23,192,817

Dividends fromsurplus(3,047,798)

Reversal of reserve fortemporary difference
adjustment‐

Net income

3,527,879

Net changes of items
other thanunitholders’ equity

230,263

230,263

230,263

Total changes of items
during the period

230,263

230,263

23,903,161

Balance at end of theperiod323,181

323,181

127,127,624- 9 -17th fiscal period (from February 1, 2024 to July 31, 2024)(Unit: thousand yen)
Unitholders’ equity
Surplus
Voluntary reserve
Unitholders’capitalBalance at beginning of
the period

Unitholders’capital surplus

89,316,185

25,132,218

Reserve fortemporarydifference
adjustment
8,446,674

Total voluntary
reserve

Unappropriatedretained earnings(undisposed loss)

Total surplus

Total unitholders’equity8,446,674

3,909,364

37,488,257

126,804,443(3,614,928)(3,614,928)(3,614,928)

88,912‐‐

3,668,967

3,668,967

3,668,967

Changes of items during
the period
Dividends fromsurplus
Reversal of reserve fortemporary difference
adjustment(88,912)(88,912)Net income
Net changes of items
other thanunitholders’ equity
Total changes of items
during the period
Balance at end of theperiod‐*1

89,316,185‐(88,912)(88,912)142,951

54,03954,03925,132,218

8,357,762

8,357,762

4,052,316

37,542,297

126,858,483

Valuation and translation
adjustments

Balance at beginning of
the period

Deferred gains orlosses on hedges

Total valuationand translation
adjustments

Total net assets

323,181

323,181

127,127,624

Changes of items during
the period
Dividends fromsurplus(3,614,928)

Reversal of reserve fortemporary difference
adjustment‐

Net income

3,668,967

Net changes of items
other thanunitholders’ equity

291,958

291,958

291,958

Total changes of items
during the period

291,958

291,958

345,997

Balance at end of theperiod615,139

615,139

127,473,622- 10 -

(4) Statement of Cash Distributions(Unit: yen)
16th fiscal period
From: August 1, 2023
To: January 31, 2024
I. Unappropriated retained earnings
II. Reversal of voluntary reserve
Reversal of reserve for temporary difference
adjustment *1
III. Cash distribution(Cash distribution per unit)
Cash distribution of earnings(Cash distribution of earnings per unit)
IV. Retained earnings carried forward
Method of calculation of amount of cash
distributions

17th fiscal period
From: February 1, 2024
To: July 31, 2024

3,909,364,877

4,052,316,832

88,912,365

88,912,365

3,614,928,000(1,524)
3,614,928,000(1,524)

3,785,712,000(1,596)
3,785,712,000(1,596)383,349,242

355,517,197

Pursuant to the cash distribution
Pursuant to the cash distribution
policy provided in Article 35,
policy provided in Article 35,
Paragraph 1 of SAR’s Articles ofParagraph 1 of SAR’s Articles ofIncorporation, SAR shall distribute inIncorporation, SAR shall distribute inexcess of the amount equivalent toexcess of the amount equivalent to
90% of the amount of distributable
90% of the amount of distributableearnings of SAR as defined in Article
earnings of SAR as defined in Article
67‐15, Paragraph 1 of the Act on
67‐15, Paragraph 1 of the Act on
Special Measures Concerning Taxation. Special Measures Concerning Taxation.
In accordance with this policy,
In accordance with such policy,
concerning the cash distribution ofconcerning cash distribution of
earnings (not including cash
earnings (not including cash
distribution in excess of earnings), the distribution in excess of earnings), thedecision was made to distributedecision was made to distribute
3,614,928,000 yen, which is the
3,785,712,000 yen, which is equivalent
to the sum of net income, the amountintegral multiple of the total numberof investment units issued andof reversal of reserve for temporary
outstanding and the sum of net
difference adjustment of 88,912,365
income and the amount of reversal of yen, and a portion of retained
reserve for temporary difference
earnings brought forward ofadjustment of 88,912,365 yen.
27,832,045 yen.

- 11 -

(5) Statement of Cash Flows(Unit: thousand yen)
17th fiscal period
From: February 1, 2024
To: July 31, 2024

16th fiscal period
From: August 1, 2023
To: January 31, 2024
Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of investment corporation bond issuancecosts
Amortization of investment unit issuance costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in prepaid expenses
Decrease (increase) in long‐term prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable ‐ other
Increase (decrease) in advances received
Decrease in property, plant and equipment in trust
due to sale
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
Repayments of leasehold and guarantee deposits
received
Repayments of leasehold and guarantee deposits
received in trust
Proceeds from leasehold and guarantee deposits
received in trust
Proceeds from refund of leasehold and guarantee
deposits
Payments of leasehold and guarantee deposits in trust
Purchase of investment securities
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short‐term borrowings
Repayments of short‐term borrowings
Proceeds from long‐term borrowings
Repayments of long‐term borrowings
Proceeds from issuance of investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period※1- 12 -

3,528,484
963,6023,669,572
1,034,674

1,020

1,020

20,812(58)
466,991(180,377)(1,245,234)(204,286)(78,623)(211,507)
101,183
104,651(207,980)

20,812
ሺ62)
508,333
ሺ123,617)
1,245,234
390,224
ሺ36,191)
63,212
ሺ156,352)
30,722
131,620

2,670,427‐(8,731)5,720,373
58(445,423)(616)
5,274,392

6,961
6,786,16462
ሺ497,419)
ሺ609)
6,288,198(48,883,791)(2,176,621)

ሺ843,429)‐(126)

ሺ1,245)(294,990)

ሺ51,933)

244,635

194,341120‐(263,988)(430,000)(10)(51,804,771)‐‐‐
ሺ702,267)

1,300,000‐
29,840,000(4,840,000)
23,143,614(3,047,528)
46,396,086(134,292)
11,787,736
11,653,443

1,000,000
ሺ1,300,000)
8,500,000
ሺ9,500,000)‐
ሺ3,614,441)
ሺ4,914,441)
671,489
11,653,443
12,324,933※1

(6) Notes on the Going Concern Assumption
Not applicable.
(7) Notes on Matters Concerning Significant Accounting Policies
1. Evaluation standards andmethods of valuation of
securities(1) Investments in other securities of subsidiaries and associates:
Cost method through moving‐average method(2) Other securities:
Those with market price
Fair value method or market value method (Variances are directly included in net assets.)

2. Method of depreciation ofnon‐current assets(1) Property, plant and equipment (including trust assets)
The straight‐line method is adopted. The useful life of primary property, plant and equipment is
as follows:
Buildings
2‐70 years
Structures
7‐30 years
Machinery and equipment
7‐17 years
Tools, furniture and fixtures 2‐15 years(2) Intangible assets (including trust assets)
The straight‐line method is adopted.
Fixed‐term land leasehold is amortized using the straight‐line method over the remaining
period.

3. Accounting for deferredassets(1) Investment unit issuance costs
Investment unit issuance costs are amortized by the straight‐line method over 3 years.
(2) Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized by the straight‐line method over theperiod through redemption.

4. Standards for recording
revenue and expense(1) Accounting for fixed property tax, etc.
Accounting for fixed property tax, city planning tax, depreciable asset tax, etc. (“fixed property
tax, etc.”) on real estate or beneficiary interest in trust for real estate held is that of the tax
amount assessed and determined, and the amount corresponding to the concerned fiscal
period is expensed as expenses related to rent business.
The amount equivalent to fixed property tax, etc. in the initial fiscal year borne by SAR uponacquisition of real estate or beneficiary interest in trust for real estate is not recorded as
expenses but included in the cost of acquisition of the concerned real estate, etc. In the fiscal
period under review, no fixed property tax, etc. was included in the cost of acquisition of realestate, etc.
(2) Standards for recording revenue
The details of main performance obligations concerning revenue generated from contracts
between SAR and its customers and the ordinary time to fulfil said performance obligations(ordinary time to recognize revenue) are as follows.
① Sale of real estate
For the proceeds from sale of real estate, SAR records revenue when the purchaser who is acustomer obtains control of the relevant real estate as a result of the seller fulfilling its delivery
obligations stipulated in the transaction agreement of the real estate.
② U li es income
SAR records utilities income in accordance with the supply of electricity and water, etc. to thelessee who is a customer based on the lease agreement of real estate and details ofagreements incidental to it.
Of the utilities income, in the case that SAR deems itself to be an agent, the net amountobtained by deducting the amount it pays to other parties from the amount it receives as
charges for electricity and gas, etc. supplied by the said other parties is recognized as revenue.

5. Method of hedge
accounting(1) Hedge accounting approach
Deferral hedge accounting is adopted.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swap transaction
Hedged items: Interest on loans(3) Hedging policy
SAR conducts derivative transactions for the purpose of hedging the risks provided in its Articles
of Incorporation pursuant to basic rules on risk management.
(4) Method of assessing the effectiveness of hedging
The effectiveness of hedging is assessed by comparing the cumulative change in cash flows of
the hedging instruments with the cumulative change in cash flows of the hedged items andverifying the ratio of the amount of change in the two.

- 13 -

The funds (cash and cash equivalents) in the statement of cash flows comprise cash on hand and6. Scope of funds in thestatement of cash flows
cash in trust, demand deposits and deposits in trust, and short‐term investments with a maturity(cash and cash equivalents) of three months or less from the date of acquisition that are readily convertible to cash and thatare subject to an insignificant risk of changes in value.
7. Other significant mattersserving as the basis for
preparation of financial
statements(1) Accounting for beneficiary interest in trust for real estate, etc.
Concerning beneficiary interest in trust for real estate, etc. held, all accounts of assets andliabilities within trust assets as well as all accounts of revenue and expenses from the trust
assets are recognized in the relevant account item of the balance sheet and the statement ofincome and retained earnings.
The following material items of the trust assets recognized in the relevant account item areseparately listed on the balance sheet.
① Cash and deposits in trust② Buildings in trust; Structures in trust; Machinery and equipment in trust; Tools, furnitureand fixtures in trust; Land in trust; Construction in progress in trust③ Leasehold rights in trust④ Leasehold and guarantee deposits received in trust⑤ Leasehold and guarantee deposits received in trust(2) Accounting for consumption tax, etc.
Non‐deductible consumption tax on acquisition of assets is included in the acquisition cost ofeach asset.

(8) Notes on the Financial Statements[Notes on the Balance Sheet]*1 Minimum net assets as provided in Article 67, Paragraph 4 of the Act on Investment Trusts and Investment Corporations(Unit: thousand yen)
16th fiscal period(As of January 31, 2024)

17th fiscal period(As of July 31, 2024)
50,00050,000*2 Matters concerning provision and reversal of the reserve for temporary difference adjustment
16th fiscal period (As of January 31, 2024)(Unit: thousand yen)
InitialamountGain on negative
goodwill (Note)

Balance at
beginning of
the period

8,891,236

Reserveduring theperiod8,535,586

Reversalduring theperiod‐88,912

Balance at
end of theperiodReasons for provision andreversal

8,446,674 Appropriate for distribution(Note) Gain on negative goodwill indicates the amount of provision of gain on negative goodwill recorded in the past fiscal period, and will be reversedin equal amount or more over 50 years or less every fiscal period starting from the 12th fiscal period, which is the period following the fiscal
period in which the provision was made.

17th fiscal period (As of July 31, 2024)(Unit: thousand yen)
InitialamountGain on negative
goodwill (Note)

8,891,236

Balance at
beginning of
the period

Reserveduring theperiod8,446,674

Reversalduring theperiod‐88,912

Balance at
end of theperiodReasons for provision andreversal

8,357,762 Appropriate for distribution(Note) Gain on negative goodwill indicates the amount of provision of gain on negative goodwill recorded in the past fiscal period, and will be reversedin equal amount or more over 50 years or less every fiscal period starting from the 12th fiscal period, which is the period following the fiscal
period in which the provision was made.

- 14 -

[Notes on the Statement of Income and Retained Earnings]*1 Breakdown of operating income from real estate leasing(Unit: thousand yen)
16th fiscal period
From: August 1, 2023 To: January 31, 2024

17th fiscal period
From: February 1, 2024 To: July 31, 2024

A. Operating revenue from realestate leasing
Rental revenue
Rental revenue

6,268,199

6,818,995

Common area maintenancerevenue

561,698

568,845

Parking revenue

208,004

209,292

Facility use revenue

33,40632,295

Other rental revenue

6,551

7,077,860

6,374

7,635,803

Other lease business revenue
Utilities income

351,432

Other revenue

95,624

Total operating revenue from realestate leasing

348,798
447,056

63,401

7,524,917

412,199
8,048,003

B. Operating expenses from realestate leasing
Expenses related to rent business
Management fee

454,790

466,129

Utilities expenses

372,542

379,716

Taxes and dues

490,171599,404

Repair expenses

319,629

217,551

Trust fee

28,66830,462

Insurance premium

15,31420,709Depreciation

963,602

1,034,674

Other expenses

301,786

307,198

Total operating expenses fromreal estate leasing

2,946,506

3,055,846

C. Operating income (loss) from realestate leasing [A‐B]

4,578,410

4,992,156*2 Breakdown of gain (loss) on sale of real estate
16th fiscal period (from August 1, 2023 to January 31, 2024)(Unit: thousand yen)
Urban Park Gokokuji
Proceeds from sale of real estate

1,800,000

Cost of sale of real estate

1,488,569

Other sale expenses

46,106

Gain on sale of real estate

265,324(Unit: thousand yen)

Urban Park Koenji
Proceeds from sale of real estate

1,315,000

Cost of sale of real estate

1,181,858

Other sale expenses

23,950Gain on sale of real estate

109,191

17th fiscal period (from February 1, 2024 to July 31, 2024)
Not applicable.

‐ 15 ‐

[Notes on the Statement of Unitholders’ Equity]*1 Total number of investment units authorized and total number of investment units issued and outstanding
16th fiscal period
From: August 1, 2023
To: January 31, 2024

17th fiscal period
From: February 1, 2024
To: July 31, 2024

Total number of investment units
authorized

10,000,000 units

10,000,000 units

Total number of investment units issued
and outstanding

2,372,000 units

2,372,000 units[Notes on the Statement of Cash Distributions]
16th fiscal period
From: August 1, 2023 To: January 31, 2024

17th fiscal period
From: February 1, 2024 To: July 31, 2024

*1 Reserve for temporary difference adjustment
SAR provided 8,891,236 thousand yen as reserve fortemporary difference adjustment in the 10th fiscal period.
From the 11th fiscal period, SAR plans to reverse the sameamount or more in each fiscal period over a period of up to
50 years. In the fiscal period under review, SAR decided toreverse 88,912 thousand yen.

*1 Reserve for temporary difference adjustment
SAR provided 8,891,236 thousand yen as reserve fortemporary difference adjustment in the 10th fiscal period.
From the 11th fiscal period, SAR plans to reverse the sameamount or more in each fiscal period over a period of up to
50 years. In the fiscal period under review, SAR decided toreverse 88,912 thousand yen.

[Notes on the Statement of Cash Flows]*1 Reconciliation of cash and cash equivalents at end of period to the amount of balance sheet items(Unit: thousand yen)
16th fiscal period
From: August 1, 2023
To: January 31, 2024

17th fiscal period
From: February 1, 2024
To: July 31, 2024

Cash and deposits

2,466,478

3,379,427

Cash and deposits in trust

9,186,964

8,945,505

Cash and cash equivalents

11,653,443

12,324,933[Notes on Lease Transactions]Operating leases (as lessee)
Future minimum lease payments(Unit: thousand yen)
16th fiscal period
As of January 31, 2024
Not later than 1 year
Later than 1 year
Total

17th fiscal period
As of July 31, 2024
173,606

180,199

6,358,578

6,477,402

6,532,184

6,657,601

Operating leases (as lessor)
Future minimum lease payments(Unit: thousand yen)
16th fiscal period
As of January 31, 2024

17th fiscal period
As of July 31, 2024

Not later than 1 year

6,246,687

5,741,460

Later than 1 year

22,516,811

21,624,088

28,763,498

27,365,549

Total‐ 16 ‐

[Notes on Financial Instruments]
1. Matters concerning status of financial instruments(1) Policy for handling financial instruments
SAR shall procure funds to allocate to acquisition of real estate related assets, repayment of interest‐bearing liabilities,
etc. through mainly issuance of investment units, borrowing from financial institutions, issuance of investment
corporation bonds, etc. Upon procuring funds through interest‐bearing liabilities, due consideration shall be given tofund procurement agility and financial stability.
(2) Description of financial instruments and associated risks, and risk management system
The funds procured through loans, which shall be for the purpose of mainly acquisition of assets, are exposed to liquidity
risk until the repayment date, but the concerned risks are managed by taking such measures as lengthening the
procurement periods and staggering the maturities. In addition, loans with floating interest rates are exposed to interest
rate fluctuation risk, but derivative transactions (interest rate swap transactions) are utilized as hedging instruments to,in effect, convert interest rates to fixed rates in order to mitigate that risk. For the hedge accounting approach, hedging
instruments, hedged items, hedging policy and method of assessing the effectiveness of hedging, please refer to “5.
Method of hedge accounting” described under “(7) Notes on Matters Concerning Significant Accounting Policies” earlier
in this document.
(3) Supplementary explanation to matters concerning fair value, etc. of financial instruments
Not applicable.
2. Matters concerning fair value, etc. of financial instruments
The carrying amount, fair value and the amount of difference between them are as follows. Because “cash and deposits,”“cash and deposits in trust” and “short‐term borrowings” are cash and settled in a short period of time and the fair values
approximate the book values accordingly, notes on these matters are omitted.
16th fiscal period (As of January 31, 2024)(Unit: thousand yen)
Carrying amount

Fair value

Amount of difference(1) Current portion of long‐term borrowings

13,285,000

13,285,000‐(2) Investment corporation bonds

1,000,000

989,600(10,400)

107,555,000

107,482,716(72,283)

121,840,000

121,757,316(82,683)

323,181

323,181‐(3) Long‐term borrowings
Liabilities total(4) Derivative transactions (*)(*) Assets and liabilities arising from derivative transactions are offset and presented in the net amount, with the balance shown in parentheses ( ) whenin a net liability position.

17th fiscal period (As of July 31, 2024)(Unit: thousand yen)
Carrying amount

Fair value

Amount of difference(1) Current portion of long‐term borrowings

11,085,000

11,085,000‐(2) Investment corporation bonds

1,000,000

978,200

ሺ21,800)

108,755,000

108,640,309

ሺ114,690)

120,840,000

120,703,509

ሺ136,490)

615,139

615,139‐(3) Long‐term borrowings
Liabilities total(4) Derivative transactions (*)(*) Assets and liabilities arising from derivative transactions are offset and presented in the net amount, with the balance shown in parentheses ( ) whenin a net liability position.
(Note 1) Method of calculation of the fair value of financial instruments(1) Current portion of long‐term borrowings (3) Long‐term borrowings
Of these, the fair values of those with fixed interest rates are calculated by the present value obtained by discounting the total principal andinterest by the rate expected when similar funds are additionally borrowed in correspondence with the remaining term. Since those with floatinginterest rates are under terms and conditions that interest rates be renewed every set period of time, the fair values are approximately the sameas the book value, and thus such are used.
(2) Investment corporation bonds
The refence value announced by Japan Securities Dealers Association is stated.

‐ 17 ‐

(4) Derivative transactions
Please refer to “Notes on Derivative Transactions” later in this document.
(Note 2) Amount of redemption/repayment of investment corporation bonds and loans to be due after the date of settlement of accounts
16th fiscal period (As of January 31, 2024)(Unit: thousand yen)
Later than 1 year
and not later
than 2 years

Not later than 1
year

Total

Later than 5
years

‐

‐

‐

‐

1,000,000‐

13,285,000

19,150,000

20,275,000

21,650,000

21,680,000

24,800,000

13,285,000

19,150,000

20,275,000

21,650,000

22,680,000

24,800,000

Investment corporation bonds
Long‐term borrowings

Later than 2
Later than 3
Later than 4
years and not
years and not
years and notlater than 3 years later than 4 years later than 5 years

17th fiscal period (As of July 31, 2024)(Unit: thousand yen)
Later than 1 year
and not later
than 2 years

Not later than 1
year

Total

Later than 5
years

‐

‐

‐

‐

1,000,000‐

11,085,000

20,910,000

23,165,000

19,490,000

25,120,000

20,070,000

11,085,000

20,910,000

23,165,000

19,490,000

26,120,000

20,070,000

Investment corporation bonds
Long‐term borrowings

Later than 2
Later than 3
Later than 4
years and not
years and not
years and notlater than 3 years later than 4 years later than 5 years[Notes on Securities]
16th fiscal period (As of January 31, 2024)
Notes are omitted because they lack significance.
17th fiscal period (As of July 31, 2024)
Notes are omitted because they lack significance.
[Notes on Derivative Transactions]
1. Derivative transactions to which hedge accounting is not applied
16th fiscal period (As of January 31, 2024)
Not applicable.
17th fiscal period (As of July 31, 2024)
Not applicable.
2. Derivative transactions to which hedge accounting is applied
16th fiscal period (As of January 31, 2024)
The following is the contract amount or the amount equivalent to the principal provided in the contract as of the date ofsettlement of accounts for each hedge accounting approach.
(Unit: thousand yen)
Hedge accounting
approach

Type, etc. of derivative transaction

Main hedged
item

Principle
accounting

Interest rate swap transaction(floating receivable; fixed payable)

Long‐term
borrowings

Contract amount, etc. (Note 1)(Note 1) Contract amount, etc. are based on notional principal.
(Note 2) Fair value is calculated based on the price quoted by lending financial institutions, etc.

‐ 18 ‐Of which, due
after 1 year
77,465,000

68,965,000

Fair value(Note 2)
323,18117th fiscal period (As of July 31, 2024)
The following is the contract amount or the amount equivalent to the principal provided in the contract as of the date ofsettlement of accounts for each hedge accounting approach.
(Unit: thousand yen)
Hedge accounting
approach

Type, etc. of derivative transaction

Main hedged
item

Principle
accounting

Interest rate swap transaction(floating receivable; fixed payable)

Long‐term
borrowings

Contract amount, etc. (Note 1)
Of which, due
after 1 year
68,965,000

Fair value(Note 2)

61,665,000

615,139(Note 1) Contract amount, etc. are based on notional principal.
(Note 2) Fair value is calculated based on the price quoted by lending financial institutions, etc.

[Notes on Retirement Benefits]
16th fiscal period (As of January 31, 2024)
Not applicable.
17th fiscal period (As of July 31, 2024)
Not applicable.
[Notes on Tax‐Effect Accounting]
1. Breakdown of main causes for occurrence of deferred tax assets and deferred tax liabilities(Unit: thousand yen)
16th fiscal period
As of January 31, 2024

17th fiscal period
As of July 31, 2024

Deferred tax assets
Valuation adjustment upon merger
Leasehold interests in land

1,069,936

1,047,923

2,211

4,864

Acquisition cost of securities

4,518

4,518

Asset retirement obligations

31,13531,433

Deferred gains or losses on hedges

6,303

‐

Deferred tax assets, subtotal

1,114,105

1,088,739

Valuation allowance(1,114,105)

ሺ1,088,739)

Deferred tax assets, total‐‐

Deferred tax assets, net‐‐

2. Breakdown of major components that caused any significant differences between the statutory tax rate and the effective
income tax rate after application of tax‐effect accounting(Unit: %)16th fiscal period
As of January 31, 2024
Statutory tax rate

17th fiscal period
As of July 31, 2024

31.46

31.46

[Adjustments]
Deductible distributions payable(31.14)

ሺ31.09)

Reversal of excess depreciation(0.40)

ሺ0.39)

Other

0.09

0.04

Effective income tax rate after application of tax‐
effect accounting

0.02

0.02

[Notes on Share of Profit or Loss of Entities Accounted for Using Equity Method, etc.]
16th fiscal period (As of January 31, 2024)
Notes are omitted because they lack significance.
17th fiscal period (As of July 31, 2024)
Notes are omitted because they lack significance.

‐ 19 ‐

[Notes on Related‐Party Transactions]
1. Parent company, major corporate unitholders, etc.
16th fiscal period (from August 1, 2023 to January 31, 2024)
Not applicable.
17th fiscal period (from February 1, 2024 to July 31, 2024)
Not applicable.
2. Affiliated companies, etc.
16th fiscal period (from August 1, 2023 to January 31, 2024)
Not applicable.
17th fiscal period (from February 1, 2024 to July 31, 2024)
Not applicable.
3. Fellow subsidiaries, etc.
16th fiscal period (from August 1, 2023 to January 31, 2024)
Not applicable.
17th fiscal period (from February 1, 2024 to July 31, 2024)
Not applicable.
4. Directors, major individual unitholders, etc.
16th fiscal period (from August 1, 2023 to January 31, 2024)
CapitalName of
Description ofstock orcompany, etc. Address
business orinvestments
or person
occupationin capital

Type

Director,or close
relative of
director

Atsushi Kato‐‐

Percentage ofvoting rights,
etc. held by(in) SAR

Description oftransaction

Transaction
amount(thousandyen)

Account
item

Balance at
end of period(thousand
yen)

0.03%

Payment of asset
management fee tothe Asset Manager(Note 1)

794,310(Note 2)
(Note 3)

Accounts
payable ‐other

564,000(Note 2)

Percentage ofvoting rights,
etc. held by(in) SAR

Description oftransaction

Transaction
amount(thousandyen)

Account
item

Balance at
end of period(thousand
yen)

0.03%

Payment of asset
management fee tothe Asset Manager(Note 1)

542,424(Note 2)
(Note 3)

Accounts
payable ‐other596,666(Note 2)

Executive
Director of SAR,
and President
and CEO of theAsset Manager

17th fiscal period (from February 1, 2024 to July 31, 2024)
CapitalName of
Description ofstock orcompany, etc. Address
business orinvestments
or person
occupationin capital

Type

Director,or close
relative of
director

Atsushi Kato‐‐

Executive
Director of SAR,
and President
and CEO of theAsset Manager(Note 1) The transaction was conducted by Atsushi Kato as President and CEO of a third party (the Asset Manager), and the transaction amount isbased on the terms and conditions provided in the Articles of Incorporation of SAR.
(Note 2) Of the amounts above, the transaction amount does not include consumption tax, while the balance at the end of the period includes
consumption tax.
(Note 3) The asset management fee for the 16th fiscal period includes the acquisition incentive portion included in the book value of individual realestate, etc. in the amount of 250,433 thousand yen and the transfer incentive portion for real estate, etc. in the amount of 31,150 thousandyen.

‐ 20 ‐

[Notes on Asset Retirement Obligations]
1. Outline of the asset retirement obligations
SAR concluded a fixed‐term subleasehold agreement for the land of its asset Best Western Plus Fukuoka Tenjin‐minami,
and recognized asset retirement obligations in connection with the obligation to restore the site to its original conditionat the end of the sublease term.
2. Method of calculating asset retirement obligations
Asset retirement obligations are calculated using the expected period of use, which is estimated at 55 years from theexpiration of the fixed‐term subleasehold agreement, and a discount rate of 1.925%.
3. Changes in total asset retirement obligations(Unit: thousand yen)
16th fiscal period
From: August 1, 2023
To: January 31, 2024

17th fiscal period
From: February 1, 2024
To: July 31, 2024

Balance at beginning of period
Increase due to purchases of property,
plant and equipment
Adjustment due to passage of time
Balance at end of the period‐

98,96998,187

‐

782

945

98,96999,915[Notes on Investments in Rental Properties]
SAR owns rental real estate, etc. for the purpose of earning revenue from leasing. The carrying amount, amount of increase(decrease) during the period and fair value of these investments in rental properties are as follows:(Unit: thousand yen)
16th fiscal period
From: August 1, 2023
To: January 31, 2024

17th fiscal period
From: February 1, 2024
To: July 31, 2024

Carrying amount
Balance at beginning of period

194,178,685

241,648,945

Amount of increase (decrease) during period

47,470,259(250,016)

Balance at end of the period

241,648,945

241,398,928

266,696,000

271,352,000

Fair value at end of period(Note 1) Carrying amount is the amount of the cost of acquisition, less accumulated depreciation.
(Note 2) Of the amount of increase (decrease) in investments in rental properties during 16th fiscal period, the amount of increase is mainly attributableto acquisition of real estate beneficiary interest in trust of 11 properties (49,825,623 thousand yen), capital expenditures (1,107,190 thousand
yen, which includes 275,884 thousand yen for extension work), and the acquisition of leasehold interest for leased land of property held
(171,477 thousand yen), while the amount of decrease is mainly attributable to disposition of real estate beneficiary interest in trust of two
properties (2,670,427 thousand yen) and depreciation (963,602 thousand yen). During the 17th fiscal period, the amount of increase is mainly
attributable to capital expenditures (774,323 thousand yen), and the amount of decrease is mainly attributable to depreciation (1,034,674
thousand yen).
(Note 3) Fair value at the end of the period is based on the appraisal value by an outside real estate appraiser. Of the fair values at the end of the 17th
fiscal period, those of Urban Park Namba and Smile Hotel Namba are based on the transfer prices (1,700,000 thousand yen and 1,800,000
thousand yen) stated in the trust beneficiary interest sale and purchase agreements dated August 2, 2024.

Income (loss) concerning investments in rental properties is as stated in “Notes on the Statement of Income and Retained
Earnings” earlier in this document.

‐ 21 ‐

[Notes on Revenue Recognition]
1. Breakdown information on revenue from contracts with customers
16th fiscal period (from August 1, 2023 to January 31, 2024)(Unit: thousand yen)
Revenue from contracts with customers(Note 1)

Sales to external customers

Proceeds from sale of real estate(Note 2)

374,516

374,516

Utilities reimbursement351,432

351,432

Other‐

7,238,921

Total

725,948

7,964,869(Note 1) Rental revenue, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13) are excluded from the above amountas such revenue is not subject to the Revenue Recognition Accounting Standard. Revenue from contracts with customers mainly represents
proceeds from sale of real estate and utilities income.
(Note 2) Proceeds from sale of real estate is recorded as gain on sale of property in the statement of income and retained earnings. Therefore, theamount calculated by deducting the cost of sale of real estate and other sale expenses from the proceeds from sale of real estate is indicated.

17th fiscal period (from February 1, 2024 to July 31, 2024)(Unit: thousand yen)
Revenue from contracts with customers(Note)
Proceeds from sale of real estate

Sales to external customers‐

Utilities reimbursement‐

348,798

348,798

Other‐

7,764,987

Total

348,798

8,113,786(Note) Rental revenue, etc. subject to the “Accounting Standard for Lease Transactions” (ASBJ Statement No.13) are excluded from the above
amount as such revenue is not subject to the Revenue Recognition Accounting Standard. Revenue from contracts with customers mainly
represents proceeds from sale of real estate and utilities income.

2. Foundational information for understanding revenue from contracts with customers
The information is as indicated in “(7) Notes on Matters Concerning Significant Accounting Policies” earlier in this document.
3. Information on relationship of fulfillment of performance obligations based on contracts with customers with cashflow
generated from said contracts and amount and period of revenue expected to be recognized in the next fiscal period or
thereafter from contracts with customers existing at the end of the current fiscal period.
(1) Balance of contract assets and contract liabilities, etc.
(Unit: thousand yen)
16th fiscal period
From: August 1, 2023
To: January 31, 2024

17th fiscal period
From: February 1, 2024
To: July 31, 2024

Claims generated from contracts with customers(balance at beginning of the period)

71,46062,199Claims generated from contracts with customers(balance at end of the period)

62,19980,919Contract assets (balance at beginning of the period)‐‐

Contract assets (balance at end of the period)‐‐

Contract liabilities (balance at beginning of the period)‐‐

Contract liabilities (balance at end of the period)‐‐‐ 22 ‐

(2) Transaction value allocated to remaining performance obligations
Not applicable.
SAR does not include contracts whose terms are initially expected to be one year or less in the note on transaction value
allocated to remaining performance obligations as an expedient in practice. Also, with regard to utilities income, as SAR
has the right to receive from customers an amount directly corresponding to the value for the lessees who are customersof portions for which performance is complete by the end of the fiscal period, the amount it has the right to claim
according to Paragraph 19 of the Application Guidelines of the Accounting Standard for Revenue Recognition isrecognized as revenue. Accordingly, such is not included in the note on transaction value allocated to remaining
performance obligations through application of the provisions of Paragraph 80‐22 (2) of the Accounting Standard for
Revenue Recognition.
[Notes on Segment Information]
1. Segment information
Segment information is omitted because SAR operates a single segment, which is the real estate leasing business.
2. Related information
16th fiscal period (from August 1, 2023 to January 31, 2024)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single product andservice category are in excess of 90% of operating revenue on the statement of income and retained earnings.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income and retained earnings.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about each major customer
Information about each major customer is omitted because all net sales to a single external customer are less than 10%of the operating revenue on the statement of income and retained earnings.
17th fiscal period (from February 1, 2024 to July 31, 2024)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single product andservice category are in excess of 90% of operating revenue on the statement of income and retained earnings.
(2) Information about geographic areas① Net sales
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of
operating revenue on the statement of income and retained earnings.
② Property, plant and equipment
Information about property, plant and equipment is omitted because the amount of property, plant and equipment
located in Japan is in excess of 90% of the amount of property, plant and equipment on the balance sheet.
(3) Information about each major customer(Unit: thousand yen)
Name of customer

Operating revenue

KOKO HOTELS Co., Ltd.

1,106,695‐ 23 ‐Name of related segment
Real estate leasing business[Notes on Per Unit Information]
16th fiscal period
From: August 1, 2023
To: January 31, 2024

17th fiscal period
From: February 1, 2024
To: July 31, 2024

Net assets per unit

53,595 yen

53,740yen

Net income per unit

1,518 yen

1,546yen(Note 1) Net income per unit is calculated by dividing net income by the daily weighted average number of investment units. In addition, diluted net income
per unit is not stated, because there are no diluted investment units.
(Note 2) The basis for calculation of net income per unit is as follows:

16th fiscal period
From: August 1, 2023
To: January 31, 2024
Net income (thousand yen)

17th fiscal period
From: February 1, 2024
To: July 31, 2024

3,527,879

3,668,967

Amount not attributable to common
unitholders (thousand yen)‐‐

Net income attributable to common
investment units (thousand yen)

3,527,879

3,668,967

Average number of investment units during
period (units)

2,323,053

2,372,000[Notes on Significant Subsequent Events]
Issuance of new investment units
At Board of Directors meetings held on August 19 and August 22, 2024, SAR resolved to issue new investment units to acquire
real estate, etc. The payments were completed on August 28, 2024. Details are as follows.
<Issuance of new investment units by means of primary offering>Number of new investment units issued: 315,000
Issue price (offer price):
52,942 yen per unit
Total issue price (offer price):
16,676,730,000 yen
Issue price (payment amount):
51,198 yen per unit
Total issue price (payment amount):
16,127,370,000 yen
Payment date:August 28, 2024
Net proceeds from the issuance of new investment units are used as part of the acquisition funds. The real estate beneficiaryinterest in trust of four properties was acquired (the total acquisition price is 34,700 million yen) on August 30, 2024.
Transfer of property
The transfers of Urban Park Namba and Smile Hotel Namba have been completed. Details are as follows.
<Urban Park Namba>
Assets to be transferred:
Date of sale and purchase agreement:
Transfer date:
Address:
Transferee:Transfer price:
Impact on earnings:

beneficiary interest in trust mainly for domestic real estate
August 2, 2024
September 6, 2024
2‐7‐22 Inari, Naniwa‐ku, Osaka, Osaka prefecture
Not disclosed
1,700,000 thousand yen
A gain on sale of real estate of approximately 175 million yen will be posted inoperating revenue during the fiscal period ending January 31, 2025.

<Smile Hotel Namba>
Assets to be transferred: beneficiary interest in trust mainly for domestic real estate
Date of sale and purchase agreement:
August 2, 2024
Transfer date:August 19, 2024
Address:
3‐3‐9 Saiwaicho, Naniwa‐ku, Osaka, Osaka prefecture
Transferee:Not disclosed
Transfer price:
1,800,000 thousand yen
Impact on earnings:
A gain on sale of real estate of approximately 139 million yen will be posted inoperating revenue during the fiscal period ending January 31, 2025.

‐ 24 ‐

(9) Changes in Total Number of Investment Units Issued and Outstanding
The following are the changes in unitholders’ capital and total number of investment units issued and outstanding for themost recent five years.

Date

Remarks

Total number of investment units
issued and outstanding (units)
Increase(Decrease)

BalanceUnitholders’ capital(thousand yen)
Increase(Decrease)

Remarks

BalanceAugust 1, 2020

Investment unit split

540,824

1,081,648‐

52,745,966 (Note 1)

August 1, 2020

Merger592,741

1,674,389‐

52,745,966 (Note 2)

Capital increase
August 17, 2021
through public offering

115,000

1,789,389

6,369,735

59,115,701 (Note 3)

August 16, 2022

Capital increase
through public offering

132,300

1,921,689

7,007,666

66,123,367 (Note 4)

August 21, 2023

Capital increase
through public offering

450,3112,372,000

23,192,817

89,316,185 (Note 5)(Note 1) SAR has conducted an investment unit split to split one investment unit into two investment units.
(Note 2) Due to the merger dated August 1, 2020, SAR allocated and delivered 1.78 SAR investment units for every 1.0 SSR investment unit. As a result,
SAR issued 592,741 new investment units.
(Note 3) New investment units were issued through public offering at an issue price of 57,330 yen (paid‐in amount of 55,389 yen) per unit for the
purpose of procuring funds for acquisition of new properties.
(Note 4) New investment units were issued through public offering at an issue price of 54,795 yen (paid‐in amount of 52,968 yen) per unit for the
purpose of procuring funds for acquisition of new properties.
(Note 5) New investment units were issued through public offering at an issue price of 53,235yen (paid‐in amount of 51,504 yen) per unit for the
purpose of procuring funds for acquisition of new properties.

‐ 25 ‐

4. Reference Information(1) Investment Status
16th fiscal period(As of January 31, 2024)
Type ofasset

Total amountheld(million yen)
(Note 2)

As a percentage
of total assets(%)(Note 3)

Total amountheld(million yen)
(Note 2)

As a percentage
of total assets(%)(Note 3)

Greater Tokyo

56,99622.0

56,96922.0

Major Metropolitan Areas

10,768

4.2

10,723

4.1

Primary use

OfficeRetailRealestatein trust

Geographic area
(Note 1)

Residence

17th fiscal period(As of July 31, 2024)

Other than the above

7,995

3.1

8,208

3.2

Greater Tokyo

2,998

1.2

2,997

1.2

Major Metropolitan Areas

9,555

3.7

9,539

3.7

Other than the above

15,1785.9

15,202

5.9

Greater Tokyo

33,455

12.9

33,376

12.9

Major Metropolitan Areas

6,186

2.4

6,158

2.4

Logistics facility Greater Tokyo

29,09811.2

29,044

11.2

Greater Tokyo

30,51611.8

30,465

11.8

Major Metropolitan Areas

20,051

7.7

19,947

7.7

Hotel

Other than the above
Subtotal

18,847

7.3

18,764

7.3

241,64893.2

241,398

93.3

Preferred equity securities

1,588

0.6

1,588

0.6

Mezzanine loan debt

1,170

0.5

1,170

0.5

Deposits and other assets

14,748

5.7

14,521

5.6

Total amount of assets

259,155

100.0

258,678

100.0

Amount(million yen)

As a percentage
of total assets(%)

Amount(million yen)

As a percentage
of total assets(%)

Total amount of liabilities (Note 4)

132,02750.9

131,204

50.7

Total amount of net assets (Note 4)

127,12749.1

127,473

49.3(Note 1) “Greater Tokyo” refers to Tokyo, Kanagawa, Saitama and Chiba Prefectures. The Major Metropolitan Areas are the Osaka, Fukuoka, and Nagoya
Areas. The Osaka Area refers to the city of Osaka in Osaka prefecture. The Fukuoka Area refers to the city of Fukuoka in Fukuoka prefecture. The
Nagoya Area refers to the city of Nagoya in Aichi prefecture. In the residence, logistics facility, and hotel categories, each area includes the areas
surrounding the main city. The same shall apply hereinafter. The Asset Manager changed its investment area classifications on March 15, 2024,
and the figures above are based on the new classifications.
(Note 2) “Total amount held” is the carrying amount as at the date of settlement of accounts (in the case of real estate in trust, then the depreciated bookvalue), rounded down to the nearest million yen.
(Note 3) “As a percentage of total assets” is the carrying amount of the concerned assets expressed as a percentage of the total amount of assets, rounded
to the first decimal place.
(Note 4) “Total amount of liabilities” and “Total amount of net assets” are according to total liabilities and total net assets on the balance sheet.

‐ 26 ‐

(2) Investment Assets① Investment securities
Asset
no.

Fair value (million yen)

Unit price(yen)

Unit priceUnrealized
gain or loss Remarks(million yen)Type ofasset

Star Asia Mezzanine
MEZ‐07 Loan Debt Investment
Series 7

Corporate
bond

‐

‐

400

‐

400

‐

Star Asia Mezzanine
Loan Debt Investment
Series 8 Class A
Beneficial Interest

Trustbeneficiaryinterest

‐

‐

430

‐

430

‐

Star Asia Mezzanine
Loan Debt Investment
Series 8 Class B
Beneficial Interest

Trustbeneficiaryinterest

‐

‐

340

‐

340

‐

GSA JP Project 1
Tokutei Mokuteki
Kaisha (TMK) Preferred
Equity Securities

Preferredequitysecurities

13,328,342

119

1,588

134

1,786

198

(Note 3)(Note 5)

Total

‐

‐

‐

2,758

‐

2,956

198

‐

MEZ‐08

TK‐03

Quantity(Units)Book value (million yen)

Name of the security

AmountAmount(Note 1)
(Note 4)(Note 2)
(Note 4)(Note 1) The underlying assets are trust beneficiary interests in a trust mainly composed of Quintessa Hotel Tokyo Haneda Comic & Books.
(Note 2) The underlying assets are trust beneficiary interests in a trust mainly composed of Centurion Hotel Grand Akasaka.
(Note 3) The underlying assets are trust beneficiary interests in a trust mainly composed of HAKUSAN HOUSE.
(Note 4) Because interest income etc. from mezzanine loan debt are based on floating interest rates, the fair value is approximately the same as theacquisition cost and thus stated at that acquisition cost.
(Note 5) The fair value of preferred equity securities is the amount that is attributable to the equity held by SAR out of the net asset value of the issuerof preferred equity securities based on the appraisal value of the underlying assets.

‐ 27 ‐

② Real estate(a) Overview of real estate (acquisition price, etc.)
Use

OfficeAcquisition
price(million yen)
(Note 3)

Share ofinvestment(%)(Note 4)

Real estateappraisal value,etc. (million yen)
(Note 5)Acquisition date

Minato Ward, Tokyo

2,973

1.2

3,040

January 14, 2016

Honmachibashi Tower

Chuo Ward, Osaka City,
Osaka

6,065

2.5

7,100

January 14, 2016

OFC‐04

Nishi‐Shinjuku Matsuya Building

Shibuya Ward, Tokyo

1,763

0.7

2,740

April 20, 2016

OFC‐06

Urban Center Shibuya East

Shibuya Ward, Tokyo

2,042

0.8

3,300

April 20, 2016

OFC‐08

Urban Center Yokohama West

Kanagawa Ward,
Yokohama City,
Kanagawa

6,320

2.6

8,520

April 20, 2016

OFC‐09Hakata‐eki East Place

Hakata Ward, Fukuoka
City, Fukuoka

2,286

0.9

3,300

April 6, 2017

OFC‐10Nihonbashi Hamacho Park
Building

Chuo Ward, Tokyo

1,450

0.6

1,510

February 2, 2018

OFC‐11

Amusement Media Gakuin
HonkanShibuya Ward, Tokyo

2,580

1.1

2,710 September 6, 2018

OFC‐12

Higashi‐Kobe Center Building

Higashinada Ward, Kobe
City, Hyogo

7,600

3.2

7,460

September 6, 2018
andDecember 1, 2023

OFC‐13

Amusement Media Gakuin
Shinkan

Shibuya Ward, Tokyo

1,020

0.4

1,220

February 1, 2019

OFC‐14

Urban Center Shinjuku

Shinjuku Ward, Tokyo

11,2004.6

11,800August 1, 2020

OFC‐15

Urban Center Kanda Suda‐cho

Chiyoda Ward, Tokyo

5,350

2.2

5,420

August 1, 2020

OFC‐16

Urban Center Kanda Tsukasamachi Chiyoda Ward, Tokyo

4,590

1.9

4,570

August 1, 2020

OFC‐17

Takadanobaba AccessShinjuku Ward, Tokyo

3,990

1.7

3,810

August 1, 2020

OFC‐18

Azabu Amerex BLDG.

Minato Ward, Tokyo

2,780

1.2

2,920

August 1, 2020

OFC‐19Hiei‐Kudan BLDG.

Chiyoda Ward, Tokyo

2,400

1.0

2,420

August 1, 2020

OFC‐20Urban Center Shin‐Yokohama

Kohoku Ward, Yokohama
City, Kanagawa

2,300

1.0

2,650

August 1, 2020

OFC‐21The Portal Akihabara

Chiyoda Ward, Tokyo

1,510

0.6

1,490

August 1, 2020

OFC‐22

Urban Center Tachikawa

Tachikawa City, Tokyo

1,804

0.7

2,060

August 19, 2021

OFC‐23

Urban Center Hakata

Hakata Ward, Fukuoka
City, Fukuoka

2,870

1.2

3,290

August 19, 2021

OFC‐24

Urban Center Fujisawa

August 18, 2022

Propertyno.
(Note 1)

Property name

OFC‐01

Minami‐Azabu Shibuya Building

OFC‐03

Location(Note 2)

Fujisawa City, Kanagawa

Subtotal

2,054

0.9

2,210

74,94731.1

83,540‐Retail

RTL‐01

La Park Kishiwada

Kishiwada City, Osaka

5,400

2.2

5,170

August 1, 2020

RTL‐02

Suroy Mall Chikushino

Chikushino City, Fukuoka

6,550

2.7

6,580

August 1, 2020

RTL‐03

Seiyu Minakuchi

Koka City, Shiga

3,320

1.4

3,340

August 1, 2020

RTL‐05

BAGUS Ikebukuro West

Toshima Ward, Tokyo

2,984

1.2

3,500

August 19, 2021

RTL‐06abeno nini (Retail)Abeno Ward, Osaka City,
Osaka

9,500

3.9

10,600August 18, 2022

27,754

11.5

29,190‐Subtotal‐ 28 ‐

Use

Acquisition
price(million yen)
(Note 3)

Share ofinvestment

Minato Ward, Tokyo

2,045

Urban Park Daikanyama

Shibuya Ward, Tokyo

RSC‐05

Urban Park Namba(Note 6)

Naniwa Ward, Osaka City,
Osaka

RSC‐07

Urban Park Kashiwa

RSC‐08

Urban Park Ryokuchi Koen

RSC‐10Residence

Real estateappraisal value,etc. (million yen)
(Note 5)Acquisition date

0.8

2,990

January 14, 2016

6,315

2.6

10,300January 14, 2016

1,490

0.6

1,540

April 20, 2016

Kashiwa City, Chiba

1,186

0.5

1,240

April 6, 2017

Suita City, Osaka

1,550

0.6

1,730

February 2, 2018

Urban Park Ichigao

Aoba Ward, Yokohama
City, Kanagawa

1,810

0.8

2,160

March 13, 2020

RSC‐11

Urban Park Gyotoku

Ichikawa City, Chiba

1,430

0.6

1,610

March 13, 2020

RSC‐12

Shiroi Logiman

Shiroi City, Chiba

2,470

1.0

2,580

August 1, 2020

RSC‐13

Urban Park Sekime

Joto Ward, Osaka City,
Osaka

2,150

0.9

2,450

August 1, 2020

RSC‐14

Urban Park Imazato

Ikuno Ward, Osaka City,
Osaka

993

0.4

1,090

August 1, 2020

RSC‐15

Urban Park Yoyogi

Shibuya Ward, Tokyo

1,740

0.7

2,020

August 1, 2020

RSC‐16

Urban Park Tokiwadai Koen

Hodogaya Ward,
Yokohama City, Kanagawa

3,506

1.5

4,250

October 16, 2020

RSC‐17

Urban Park Mitsuike Koen

Tsurumi Ward, Yokohama
City, Kanagawa

3,160

1.3

3,760

January 8, 2021

RSC‐18

Urban Park Ryogoku

Sumida Ward, Tokyo

1,115

0.5

1,350

August 19, 2021

RSC‐19Urban Park Mizonokuchi

Takatsu Ward, Kawasaki
City, Kanagawa

2,019

0.8

2,100

August 19, 2021

RSC‐20Urban Park MiyamaedairaMiyamae Ward, Kawasaki
City, Kanagawa

1,060

0.4

1,250

August 19, 2021

RSC‐21

Urban Park Tsurumi

Tsurumi Ward, Yokohama
City, Kanagawa

1,113

0.5

1,190

August 19, 2021

RSC‐22

Urban Park Mitaka

Mitaka City, Tokyo

743

0.3

1,010 September 1, 2023

RSC‐23

Urban Park Kamata Minami I

Ota Ward, Tokyo

641

0.3

881

December 1, 2023

RSC‐24

Urban Park Kamata Minami II

Ota Ward, Tokyo

1,375

0.6

1,770

December 1, 2023

RSC‐25

Urban Park Umejima

Adachi Ward, Tokyo

Propertyno.
(Note 1)

Property name

RSC‐01

Urban Park Azabujuban

RSC‐02

Location(Note 2)

Subtotal(%)(Note 4)

1,032

0.4

1,220

December 1, 2023

38,943

16.1

48,491

‐

6,942

2.9

7,650

January 14, 2016

Logistics facility

LGC‐01

Iwatsuki Logistics

Iwatsuki Ward, Saitama
City, Saitama

LGC‐02

Yokohama Logistics

Kanagawa Ward,
Yokohama City, Kanagawa

3,560

1.5

4,170

January 14, 2016

LGC‐03

Funabashi Logistics

Funabashi City, Chiba

7,875

3.3

8,770

January 14, 2016

LGC‐04

Baraki Logistics

Ichikawa City, Chiba

4,700

1.9

5,220

April 6, 2017

LGC‐05Tokorozawa Logistics

Tokorozawa City, Saitama

1,300

0.5

1,550

April 6, 2017

LGC‐07

Funabashi Nishiura Logistics II

Funabashi City, Chiba

821

0.3

911

February 2, 2018

LGC‐08

Matsubushi Logistics

Kitakatsushika‐gun,
Saitama

2,755

1.1

3,310

February 2, 2018

LGC‐09Funabashi Hi‐Tech Park Factory I

Funabashi City, Chiba

1,997

0.8

2,200

August 1, 2020
andDecember 20, 2023

29,95012.4

33,781‐

Subtotal‐ 29 ‐

Use

Propertyno.
(Note 1)

Property nameLocation(Note 2)Acquisition
price(million yen)
(Note 3)

Share ofinvestment(%)(Note 4)

Real estateappraisal value,etc. (million yen)
(Note 5)Acquisition date

Hotel

HTL‐01R&B Hotel Umeda East

Kita Ward, Osaka City,
Osaka

2,069

0.9

2,430

January 14, 2016

HTL‐02

Smile Hotel Namba(Note 7)

Naniwa Ward, Osaka City,
Osaka

1,750

0.7

1,490

January 14, 2016

HTL‐03REMBRANDT STYLE Tokyo
Nishikasai

Edogawa Ward, Tokyo

3,827

1.6

3,500

April 6, 2017

HTL‐04

BEST WESTERN Yokohama

Tsurumi Ward, Yokohama
City, Kanagawa

3,248

1.3

3,090

April 6, 2017

HTL‐05The BREAKFAST HOTEL FUKUOKATENJIN

Chuo Ward, Fukuoka City,
Fukuoka

1,970

0.8

2,040 September 6, 2018

HTL‐06

GLANSIT AKIHABARA

Chiyoda Ward, Tokyo

2,500

1.0

2,440 September 6, 2018

HTL‐07REMBRANDT STYLE Tokyo
Nishikasai Grande

Edogawa Ward, Tokyo

3,180

1.3

3,110 September 6, 2018

HTL‐08

KOKO HOTEL Osaka Namba

Naniwa Ward, Osaka City,
Osaka

2,000

0.8

1,780 September 6, 2018

HTL‐09abeno nini (Hotel)

Abeno Ward, Osaka City,
Osaka

3,600

1.5

3,950

HTL‐10

KOKO HOTEL Ginza 1‐chome

Chuo Ward, Tokyo

17,800

7.4

21,100 September 1, 2023

HTL‐11

KOKO HOTEL Sapporo Ekimae

Chuo Ward, Sapporo City,
Hokkaido

6,700

2.8

7,720 September 1, 2023

HTL‐12

KOKO HOTEL Fukuoka Tenjin

Chuo Ward, Fukuoka City,
Fukuoka

5,000

2.1

5,500 September 1, 2023

HTL‐13

KOKO HOTEL Hiroshima Ekimae

Minami Ward, Hiroshima
City, Hiroshima

4,100

1.7

4,430 September 1, 2023

HTL‐14

KOKO HOTEL Kagoshima
Tenmonkan

Kagoshima City,
Kagoshima

3,800

1.6

4,280 September 1, 2023

HTL‐15

KOKO HOTEL Sapporo Odori(Note 8)Chuo Ward, Sapporo City,
Hokkaido

4,200

1.7

4,370 September 1, 2023

HTL‐16

Best Western Plus Fukuoka Tenjin‐ Chuo Ward, Fukuoka City,
minamiFukuoka

3,800

1.6

4,650 September 1, 2023

69,54428.8

75,880‐241,138

100.0

270,882‐

Subtotal
Total

August 18, 2022

(Note 1) “Property no.” is assigned to SAR’s investment assets by categorizing into office (OFC), retail facility (RTL), residence (RSC), logistics facility(LGC) and hotel (HTL), and numbering in order by category. The same shall apply hereinafter.
(Note 2) “Location” is the smallest independent administrative district in which each investment asset is located.
(Note 3) “Acquisition price” indicates the sum total of the sale and purchase price, etc. (not including consumption tax and local consumption tax)
stated in the sale and purchase agreement, etc. for each investment asset (or SAR’s receipt price in the case of properties that weresucceeded to due to absorption‐type merger with SAR as the surviving corporation; or the total sale and purchase price divided
proportionally based on the ratio of the appraisal value of the properties at the time of acquisition in the case of Minami‐Azabu Shibuya
Building, since the price for each investment asset among multiple assets is not set in the sale and purchase agreement) plus construction
expenses for extension work.
(Note 4) “Share of investment” is the acquisition price of the investment asset indicated as a percentage of the total of acquisition price, rounded to
the first decimal place.
(Note 5) Daiwa Real Estate Appraisal Co., Ltd., the Japan Real Estate Institute, and Tanizawa Sogo Appraisal Co., Ltd. are entrusted with appraisals.
Real estate appraisal values are the figures indicated in the real estate appraisal report, with July 31, 2024, as the date of value. These figures
are rounded to the nearest million yen. For details, please refer to “(d) Summary of Real Estate Appraisal Reports, Etc.”(Note 6) Urban Park Namba was transferred on September 6, 2024. The same shall apply hereinafter.
(Note 7) Smile Hotel Namba was transferred on August 19, 2024. The same shall apply hereinafter.
(Note 8) The name was changed on April 1, 2024 (former property name: Fino Hotel Sapporo Odori). The same shall apply hereinafter.

‐ 30 ‐

(b) Portfolio Summarya. By Geographic Area
Geographic area

Share
(%)
(Note 1)

Acquisition price(million yen)Greater Tokyo (Note 2)

155,108

63.6

Major
Metropolitan
Areas

47,093

19.3

Other than the above

41,670

17.1

Total

243,871

100.0

Osaka Area,
Fukuoka Area
and Nagoya Area

(Note 1) “Share” is calculated on the basis of acquisition price, rounded to the first decimal place. Accordingly, the shares may not add up to 100%.
The same shall apply hereinafter in “c. By Asset Type (Use).”(Note 2) 2 mezzanine loan debts (total acquisition price: 1,170 million yen) and 1 preferred equity security (acquisition price: 1,562 million yen) are
included.

(a) OfficeGeographic area

Acquisition price(million yen)Greater Tokyo

Share
(%)

56,126

74.9

11,221

15.0

Other than the above

7,600

10.1

Total

74,947

100.0

Major
Metropolitan
Areas

Osaka Area,
Fukuoka Area andNagoya Area(b) Retail
Geographic area

Acquisition price(million yen)Greater Tokyo
Major
Metropolitan
Areas

Osaka Area,
Fukuoka Area andNagoya Area

Share
(%)

2,984

10.8

9,500

34.2

Other than the above

15,270

55.0

Total

27,754100.0(c) Residence
Geographic area

Acquisition price(million yen)Greater Tokyo
Major
Metropolitan
Areas

Osaka Area,
Fukuoka Area andNagoya Area

Other than the above
Total‐ 31 ‐

Share(%)

32,760

84.1

6,183

15.9

‐

‐

38,943100.0

(d) Logistics facility
Geographic area

Acquisition price(million yen)Greater Tokyo
Major
Metropolitan
Areas29,950

100.0

‐

‐

Osaka Area,
Fukuoka Area andNagoya Area

Other than the above
Total

Share
(%)

‐

‐

29,950100.0(e) Hotel
Geographic area

Acquisition price(million yen)

Share
(%)

Greater Tokyo (Note)

31,725

44.9

Major
Metropolitan
Areas

20,18928.6

Osaka Area,
Fukuoka Area andNagoya Area

Other than the above

18,800

26.6

Total

70,714100.0(Note) 2 mezzanine loan debts (Total acquisition price: 1,170 million yen) are included.

(f) Student residence
Geographic area

Acquisition price(million yen)Greater Tokyo (Note)
Major
Metropolitan
Areas

Osaka Area,
Fukuoka Area andNagoya Area

Other than the above
Total

Share
(%)

1,562

100.0

‐

‐

‐

‐

1,562

100.0

(Note) A preferred equity security.

b. By Size
Acquisition price

Number ofproperties

Share(%) (Note 1)

10 billion yen or more

2

2.7

5 billion yen or more but less than
10 billion yen

12

16.2

1 billion yen or more but less than 5billion yen (Note 2)

54

73.0

Less than 1 billion yen (Note 3)

6

8.1

Total

74

100.0

(Note 1) “Share” is calculated on the basis of number of properties.
(Note 2) A preferred equity security is included.
(Note 3) 2 mezzanine loan debts are included.

‐ 32 ‐

c. By Asset Type (Use)
Number ofproperties

Acquisition
price(million yen)

Office21

74,947

30.7

Retail527,754

11.4

Residence

21

38,94316.0

Logistics facility

829,95012.3

Hotel (Note 1)

18

70,714

29.0

Use

Share
(%)

Student residence (Note 2)

1

1,562

0.6

Total

74

243,871

100.0(Note 1) 2 mezzanine loan debts (Total acquisition price: 1,170 million yen) are included.
(Note 2) A preferred equity security.

(c) Status of Leasing
Rentalrevenue(thousandyen)(Note 2)

Security andguarantee
Leased area
deposits(m2)(thousand(Note 4)yen)
(Note 3)

Leasablearea (m2)(Note 5)

Occupancy
rate(%)(Note 6)

3,263.08

3,263.08

100.0

267,801

10,489.58

10,489.58

100.0

121,507

139,641

3,547.74

3,547.74

100.0

566,299106,355

1,612.88

1,612.88

100.0

November 1994

20

230,435

252,953

8,672.01

8,672.01

100.0

February 1986

18

114,477

132,3144,509.92

4,633.12

97.3

Nihonbashi Hamacho Park
Building

July 1992

4

52,08977,523

1,913.44

1,913.44

100.0

OFC‐11

Amusement Media Gakuin
HonkanNovember 1994

1

Not
disclosed(Note 9)1,892.18

100.0

OFC‐12

Higashi‐Kobe Center Building

January 1992

56

15,523.33

16,960.51

91.5

Not
disclosed(Note 9)781.33100.0

Propertyno.

Property nameConstruction
completion

Numberof tenants(Note 1)

OFC‐01

Minami‐Azabu Shibuya
Building

June 1993

6

100,390

127,889

OFC‐03

Honmachibashi Tower

February 2010

6(Note 7)

247,040

OFC‐04

Nishi‐Shinjuku Matsuya
Building

May 198710

OFC‐06

Urban Center Shibuya East

July 1993

OFC‐08

Urban Center YokohamaWest

OFC‐09Hakata‐eki East Place

OFC‐10Not
disclosed(Note 9)317,175
Not
disclosed(Note 9)Not
disclosed(Note 9)358,251
Not
disclosed(Note 9)OFC‐13

Amusement Media Gakuin
ShinkanJanuary 19991

OFC‐14

Urban Center Shinjuku

March 1989

21

239,103396,283

5,616.80

5,616.80

100.0

OFC‐15

Urban Center Kanda Suda‐
cho

October 1991

10

140,854

157,380

3,394.35

3,394.35

100.0

OFC‐16

Urban Center Kanda
Tsukasamachi

January 1988

8

101,475

142,395

3,254.44

3,254.44

100.0

OFC‐17

Takadanobaba Access

January 1994

8

113,807

119,663

3,691.49

3,691.49

100.0

OFC‐18

Azabu Amerex BLDG.

June 1988

7

75,02966,5952,240.03

2,240.03

100.0

OFC‐19Hiei‐Kudan BLDG.

September 1991

10

69,992

101,8212,298.86

2,298.86

100.0

OFC‐20Urban Center Shin‐Yokohama

March 1992

16

87,45397,7284,057.89

4,057.89

100.0

OFC‐21The Portal Akihabara

May 2002

7

35,002

32,461815.38941.6986.6

OFC‐22

Urban Center Tachikawa

May 1990

4

63,352

90,7152,799.92

3,400.47

82.3

OFC‐23

Urban Center Hakata

August 2020

8

85,373

157,558

2,639.18

2,639.18

100.0

OFC‐24

Urban Center Fujisawa

April 1991

7

80,99078,391

3,422.06

3,422.06

100.0

RTL‐01

La Park Kishiwada

August 1994

47
(Note 10)508,209230,366

40,072.49(Note 10)41,050.01(Note 10)97.6

RTL‐02

Suroy Mall Chikushino

June 2007

20

335,152

28,747.56

31,088.53

92.5

23,814.87

23,814.87

100.0

RTL‐03

Seiyu Minakuchi

May 1999

1‐ 33 ‐

277,023
Not
disclosed(Note 9)Not
disclosed(Note 9)Rentalrevenue(thousandyen)(Note 2)

Security andguarantee
Leased area
deposits(m2)(thousand(Note 4)yen)
(Note 3)Not
disclosed(Note 9)Not
disclosed(Note 9)

Leasablearea (m2)(Note 5)

Occupancy
rate(%)(Note 6)

1,497.45

100.0

3,481.03

3,481.03

100.0

1,899.83

1,986.76

95.6

5,732.38

5,977.18

95.9‐

2,543.05

2,584.81

98.4

7,346

2,744.96

2,954.77

92.9

11,1135,430.76

5,508.94

98.6

59,302

17,752

4,197.26

4,322.62

97.1

45,31624,196

2,917.93

2,976.36

98.0

290

142,506

12,157

21,214.48

21,884.21

96.9

August 1989

122

86,6478,156

7,385.33

7,693.13

96.0

Urban Park Imazato

December 1991

66

40,535916

4,513.64

4,648.64

97.1

RSC‐15

Urban Park Yoyogi

September 201723

42,472

6,587

1,180.83

1,286.50

91.8

RSC‐16

Urban Park Tokiwadai Koen

February 1994

136

152,40930,364

13,992.00

14,058.00

99.5

RSC‐17

Urban Park Mitsuike Koen

March 1992

133

134,374

32,095

10,362.00

10,362.00

100.0

RSC‐18

Urban Park Ryogoku

October 199730

38,806

7,713

2,237.02

2,304.53

97.1

RSC‐19Urban Park Mizonokuchi

August 1988

68

67,121

6,516

3,725.02

4,166.38

89.4

RSC‐20Urban Park MiyamaedairaJune 2021

45

33,9663,840

1,814.73

1,957.97

92.7

RSC‐21

Urban Park Tsurumi

February 1994

1

Not
disclosed(Note 9)3,145.41

100.0

RSC‐22

Urban Park Mitaka

June 2023

11

7,322

4,122

931.12

1,179.94

78.9

RSC‐23

Urban Park Kamata Minami I

September 2022

35

22,634

1,484

945.54971.0097.4

RSC‐24

Urban Park Kamata Minami
II

September 2023

13

38,312

6,479

1,880.92

1,962.97

95.8

Propertyno.

Property nameConstruction
completion

Numberof tenants(Note 1)

RTL‐05

BAGUS Ikebukuro West

November 1992

1

RTL‐06abeno nini (Retail)

January 2012

5

223,804

150,467

RSC‐01

Urban Park Azabujuban

November 1999

42

59,693

10,715

RSC‐02

Urban Park Daikanyama

Existing: November
1982
Newly built: May 2006

66

196,535

77,674

RSC‐05

Urban Park Namba

January 2013

115

49,082

RSC‐07

Urban Park Kashiwa

August 1997

38

39,356

RSC‐08

Urban Park Ryokuchi Koen

March 1989

58

60,546

RSC‐10Urban Park Ichigao

July 1998

58

RSC‐11

Urban Park Gyotoku

March 1995

41

RSC‐12

Shiroi Logiman

May 1995

RSC‐13

Urban Park Sekime

RSC‐14Not
disclosed(Note 9)Not
disclosed(Note 9)Not
disclosed(Note 9)RSC‐25

Urban Park Umejima

October 2023

17

27,334

4,716

1,379.26

1,434.75

96.1

LGC‐01

Iwatsuki Logistics

October 20143

201,657

97,01430,190.81

30,190.81

100.0

LGC‐02

Yokohama Logistics

October 1994

1

Not
disclosed(Note 9)18,142.08

100.0

LGC‐03

Funabashi Logistics

Building 1: September
1992
Building 2: August
1997

6

36,081.45

38,086.56

94.7

LGC‐04

Baraki Logistics

August 2015

1

Notdisclosed(Note 9)Not
disclosed(Note 9)Not
disclosed(Note 9)12,471.50

100.0

LGC‐05Tokorozawa Logistics

April 1999

1

Notdisclosed(Note 9)Not
disclosed(Note 9)Not
disclosed(Note 9)5,994.75

100.0

LGC‐07

Funabashi Nishiura Logistics
II

Warehouse: March
1991
Factory: May 1972
Office: May 1986

1

Notdisclosed(Note 9)Not
disclosed(Note 9)Not
disclosed(Note 9)6,316.32

100.0

LGC‐08

Matsubushi Logistics

March 1997

1

Notdisclosed(Note 9)Not
disclosed(Note 9)19,833.47

19,833.47

100.0

LGC‐09Funabashi Hi‐Tech Park
Factory I

Existing: May 2003
Newly built 1:
November 2023
Newly built 2:
November 2023

1

Not
disclosed(Note 9)Not
disclosed(Note 9)Not
disclosed(Note 9)8,902.08

100.0

HTL‐01R&B Hotel Umeda East

October 2000

1

65,21273,4353,940.93

3,940.93

100.0

HTL‐02

Smile Hotel Namba

February 2008

1

36,612‐

1,711.42

1,711.42

100.0

HTL‐03REMBRANDT STYLE Tokyo
Nishikasai

March 1991

1

93,99884,6005,293.88

5,293.88

100.0‐ 34 ‐

Not
disclosed(Note 9)265,769

Not
disclosed(Note 9)93,120Property
no.

Property nameConstruction
completion

Numberof tenants(Note 1)

HTL‐04

BEST WESTERN Yokohama

September 1987

1

Rentalrevenue(thousandyen)(Note 2)

Security andguarantee
Leased area
deposits(m2)(thousand(Note 4)yen)
(Note 3)80,40080,400

Leasablearea (m2)(Note 5)

Occupancy
rate(%)(Note 6)

4,686.09

4,686.09

100.0

Not
disclosed(Note 9)Not
disclosed(Note 9)2,281.49

100.0

Not
disclosed(Note 9)Not
disclosed(Note 9)1,089.06

100.0

HTL‐05The BREAKFAST HOTELFUKUOKA TENJIN

February 2017

1

Notdisclosed(Note 9)HTL‐06

GLANSIT AKIHABARA

September 2017

1

Notdisclosed(Note 9)HTL‐07REMBRANDT STYLE Tokyo
Nishikasai Grande

February 20171

70,002

116,670

2,755.19

2,755.19

100.0

HTL‐08

KOKO HOTEL Osaka Namba

April 20171

46,911‐

2,061.38

2,061.38

100.0

HTL‐09Abeno nini (Hotel)

January 2012

1

Notdisclosed(Note 9)5,553.84

100.0

HTL‐10

KOKO HOTEL Ginza 1‐chome

October 2014

1

540,155

11,292

7,299.11

7,299.11

100.0

HTL‐11

KOKO HOTEL Sapporo
EkimaeOctober 2015

1

209,472

41,417

5,886.67

5,886.67

100.0

HTL‐12

KOKO HOTEL Fukuoka Tenjin

August 2007

1

148,299

9,818

4,404.91

4,404.91

100.0

HTL‐13

KOKO HOTEL Hiroshima
EkimaeDecember 20191

139,8294,000

5,370.75

5,370.75

100.0

HTL‐14

KOKO HOTEL Kagoshima
Tenmonkan

April 20191

70,256

3,824

4,622.48

4,622.48

100.0

HTL‐15

KOKO HOTEL Sapporo Odori

June 2020

1

113,882

4,000

3,854.01

3,854.01

100.0

HTL‐16

Best Western Plus Fukuoka
Tenjin‐minami

April 2020

1

236,929‐

7,322.03

7,322.03

100.0

1,746

8,048,003

6,060,504

490,288.46 501,092.70

97.8

Total

Not
disclosed(Note 9)Not
disclosed(Note 9)(Note 1) “Number of tenants” is the number of tenants (excluding parking) under the lease agreement stated in the lease agreement for each
investment asset as of July 31, 2024. If a single tenant is leasing multiple rental units in an investment asset, the tenant is counted as 1 tenant
for the concerned investment asset. If a single tenant is leasing rental units across multiple investment assets, the tenant is counted as
separate tenants and the sum total number of tenants is stated in the total column. Furthermore, in cases where a pass‐through‐type master
lease agreement under which rent from end‐tenants is received in principle (“pass‐through‐type master lease”) has been concluded for theconcerned investment asset, the total number of end‐tenants is stated. In cases where a master lease agreement agreeing to the effect thatthe rent under the master lease agreement shall be a fixed rent (“rent‐guaranteed type master lease”) has been concluded for the concerned
investment asset, the number of tenants is 1 and the sum total of these is stated.
(Note 2) “Operating revenue from leasing” is rental revenue, common area maintenance revenue, parking revenue and other revenue generated fromreal estate held during the fiscal period under review (including other lease business revenue).
(Note 3) “Security and guarantee deposits” is the sum total amount of tenant security and guarantee deposits required based on the lease agreement(including deposits based on parking, antenna, rooftop and other agreements; the amount after depreciation) for each investment asset asof July 31, 2024 (limited to those occupied as of said date). Furthermore, in cases where a pass‐through‐type master lease agreement has
been concluded for the concerned investment asset, it is the sum total amount of tenant security and guarantee deposits under leaseagreements concluded with end‐tenants.
(Note 4) “Leased area” is the sum total of the leased area stated in the lease agreement for each investment asset as of July 31, 2024. Furthermore,in cases where a master lease agreement has been concluded for the concerned investment asset, it is the sum total of the leased area underlease agreements concluded with end‐tenants for properties under a pass‐through‐type master lease, and it is the leased area under the
master lease agreement for properties under a rent‐guaranteed type master lease.
(Note 5) “Leasable area” is the floor area regarded as being available for leasing based on the lease agreement or building drawing, etc. of the building
for each investment asset as of July 31, 2024.
(Note 6) “Occupancy rate” is the ratio of leased area to leasable area for each investment asset as of July 31, 2024, rounded to the first decimal place.
In addition, in the total column, it is the ratio of the sum total of leased area to the sum total of leasable area for each investment asset,
rounded to the first decimal place.
(Note 7) Of the tenants of the property, a single company leases all 36 units of the residential portion, of which 30 units are under a rent‐guaranteed
type master lease agreement and 6 units are under a pass‐through‐type master lease agreement.
(Note 8) In the table, “Number of tenants,” “Security and guarantee deposits,” “Leased area” and “Occupancy rate” are based on lease agreements
valid as of July 31, 2024, even if there is a notice of cancellation or termination of lease agreements with end‐tenants or unpaid rent.
(Note 9) Not disclosed, because consent for disclosure has not been obtained from the tenants.

‐ 35 ‐

(Note 10) The number of tenants and each area related to the installation of ATM are not included.

(d) Summary of Real Estate Appraisal Reports, Etc.
Summary of appraisal reports

Use

Propertyno.

Property name

Income approachAppraisal
Appraisal
Directcapitalization
Appraisal value
DCF method
NOI NOI yield
method(million
firm(million(%)(Note 1)yen)
Indicated
Indicatedyen)(Note 4)
Discount
Terminal(Note 2)value
Cap rate
value(Note 3)rate
cap rate(million(%)(million
(%)
(%)
yen)
yen)

OFC‐01 Minami‐Azabu Shibuya Building

Daiwa

3,040

3,140

3.7

3,000

3.3

3.9

134

4.5

OFC‐03 Honmachibashi Tower

Daiwa

7,100

7,060

4.0

7,120

3.8

4.2

301

5.0

Nishi‐Shinjuku Matsuya
OFC‐04
Building

Daiwa

2,740

2,680

4.0

2,760

3.8

4.2

122

6.9

OFC‐06 Urban Center Shibuya East

JREI

3,300

3,340

3.3

3,250

3.1

3.4

114

5.6

OFC‐08 Urban Center Yokohama West

JREI

8,520

8,610

3.3

8,420

3.1

3.4

315

5.0

OFC‐09 Hakata‐eki East Place

Daiwa

3,300

3,330

4.4

3,290

4.2

4.6

152

6.6

Nihonbashi Hamacho Park
OFC‐10
Building

Daiwa

1,510

1,500

4.2

1,510

4.0

4.4

62

4.3

Amusement Media Gakuin
Honkan

Daiwa

2,710

2,770

3.5

2,680

3.3

3.7

101

3.9

OFC‐12 Higashi‐Kobe Center Building

Tanizawa

7,460

7,380

4.8

7,490

4.9

5.0

399

5.2

Amusement Media Gakuin
OFC‐13
Shinkan

JREI

1,220

1,230

3.2

1,200

3.0

3.3

41

4.0

OFC‐11

OfficeOFC‐14 Urban Center Shinjuku

JREI

11,80012,0003.3

11,600

3.0

3.3

402

3.6

OFC‐15 Urban Center Kanda Suda‐cho

Tanizawa

5,420

5,580

3.4

5,350

3.5

3.6

200

3.7

Urban Center Kanda
OFC‐16
Tsukasamachi

Tanizawa

4,570

4,690

3.5

4,520

3.6

3.7

171

3.7

OFC‐17 Takadanobaba Access

Tanizawa

3,810

3,980

3.6

3,740

3.7

3.8

151

3.8

OFC‐18 Azabu Amerex BLDG.

JREI

2,920

2,920

3.4

2,920

3.1

3.4

104

3.7

OFC‐19 Hiei‐Kudan BLDG.

Tanizawa

2,420

2,490

3.4

2,390

3.5

3.6

87

3.6

OFC‐20 Urban Center Shin‐Yokohama

JREI

2,650

2,680

4.2

2,610

3.9

4.3

118

5.1

OFC‐21 The Portal Akihabara

Tanizawa

1,490

1,540

3.6

1,470

3.7

3.8

57

3.8

OFC‐22 Urban Center Tachikawa

Daiwa

2,060

2,050

4.3

2,060

4.1

4.5

94

5.2

OFC‐23 Urban Center Hakata

JREI

3,290

3,310

3.7

3,260

3.5

3.8

122

4.3

OFC‐24 Urban Center Fujisawa

JREI

2,210

2,230

4.8

2,190

4.6

5.0

116

5.6

83,54084,510‐82,830

‐

‐

3,364

4.5

JREI

5,170

5,190

6.2

5,150

6.0

6.4

381

7.1

Subtotal

Retail

RTL‐01

La Park Kishiwada

RTL‐02

Suroy Mall Chikushino

Tanizawa

6,580

6,620

5.6

6,560

5.7

5.8

382

5.8

RTL‐03

Seiyu Minakuchi

JREI

3,340

3,370

6.7

3,310

6.5

7.0

247

7.4

RTL‐05

BAGUS Ikebukuro West

JREI

3,500

3,540

3.4

3,450

3.2

3.5

123

4.1

RTL‐06abeno nini (Retail)

JREI

10,60010,7003.7

10,400

3.5

3.8

397

4.2

29,19029,420‐28,870

‐

‐

1,530

5.5

Subtotal‐ 36 ‐

Summary of appraisal reports

Use

Propertyno.

Property name

Income approachAppraisal
Directcapitalization
Appraisal value
DCF method
methodfirm(million(Note 1)yen)
Indicated
Indicated
Discount Terminal(Note 2)value
Cap rate
value
rate
cap rate(million(%)(million
(%)
(%)
yen)
yen)

Appraisal
NOI NOI yield(million(%)yen)(Note 4)(Note 3)

Residence

RSC‐01

Urban Park Azabujuban

JREI

2,990

3,020

2.9

2,950

2.7

3.0

91

4.5

RSC‐02

Urban Park Daikanyama

JREI

10,30010,4002.8

10,100

2.6

2.9

305

4.8

RSC‐05

Urban Park Namba

Daiwa

1,540

1,560

4.6

1,530

4.4

4.8

74

5.0

RSC‐07

Urban Park Kashiwa

Tanizawa

1,240

1,250

4.2

1,230

4.3

4.4

57

4.8

RSC‐08

Urban Park Ryokuchi Koen

Tanizawa

1,730

1,740

4.4

1,720

4.5

4.6

86

5.6

RSC‐10Urban Park Ichigao

JREI

2,160

2,170

3.8

2,140

3.6

3.9

88

4.8

RSC‐11

Urban Park Gyotoku

Tanizawa

1,610

1,640

3.9

1,590

4.0

4.1

68

4.7

RSC‐12

Shiroi Logiman

Tanizawa

2,580

2,540

5.0

2,590

5.1

5.2

137

5.5

RSC‐13

Urban Park Sekime

Tanizawa

2,450

2,460

4.2

2,450

4.3

4.4

113

5.3

RSC‐14

Urban Park Imazato

Tanizawa

1,090

1,100

4.4

1,080

4.5

4.6

54

5.5

RSC‐15

Urban Park Yoyogi

JREI

2,020

2,030

3.1

2,000

2.8

3.2

64

3.7

RSC‐16

Urban Park Tokiwadai Koen

Tanizawa

4,250

4,270

4.1

4,240

4.2

4.3

195

5.6

RSC‐17

Urban Park Mitsuike Koen

Tanizawa

3,760

3,780

4.3

3,750

4.4

4.5

176

5.6

RSC‐18

Urban Park Ryogoku

Tanizawa

1,350

1,360

3.6

1,350

3.7

3.8

51

4.6

RSC‐19Urban Park Mizonokuchi

Tanizawa

2,100

2,130

4.2

2,080

4.3

4.4

94

4.6

RSC‐20Urban Park Miyamaedaira

Daiwa

1,250

1,270

4.0

1,240

3.8

4.2

52

4.9

RSC‐21

Urban Park Tsurumi

Tanizawa

1,190

1,200

4.2

1,190

4.6

4.4

54

4.8

RSC‐22

Urban Park Mitaka

JREI

1,010

1,020

3.6

995

3.4

3.7

37

5.0

RSC‐23

Urban Park Kamata Minami I

JREI

881

896

3.6

866

3.2

3.8

33

5.1

RSC‐24

Urban Park Kamata Minami II

JREI

1,770

1,770

3.9

1,760

3.4

4.0

70

5.1

RSC‐25

Urban Park Umejima

JREI

1,220

1,230

3.7

1,210

3.5

3.8

46

4.4

Subtotal

Logistics facility

48,491

48,836‐

48,061

‐

‐

1,944

5.0

LGC‐01 Iwatsuki Logistics

Daiwa

7,650

7,730

4.2

7,620

4.0

4.4

331

4.8

LGC‐02 Yokohama Logistics

Daiwa

4,170

4,190

4.1

4,160

3.8

4.3

202

5.7

LGC‐03 Funabashi Logistics

Daiwa

8,770

8,850

4.1

8,730

3.9

4.3

411

5.2

LGC‐04 Baraki Logistics

Tanizawa

5,220

5,390

3.5

5,140

3.4

3.7

191

4.1

LGC‐05 Tokorozawa Logistics

JREI

1,550

1,570

4.6

1,520

4.1

4.8

75

5.8

LGC‐07 Funabashi Nishiura Logistics II

Daiwa

911

917

5.4

909

5.2

5.6

59

7.2

LGC‐08 Matsubushi Logistics

JREI

3,310

3,340

4.6

3,280

4.1

4.9

158

5.7

LGC‐09 Funabashi Hi‐Tech Park Factory I

JREI

2,200

2,230

6.3

2,160

6.2

6.6

141

7.0

33,781

34,217‐33,519

‐

‐

1,568

5.2

Subtotal‐ 37 ‐

Summary of appraisal reports

Use

Propertyno.

Income approachAppraisal
Directcapitalization
Appraisal value
DCF method
methodfirm(million(Note 1)yen)
Indicated
Indicated
Discount Terminal(Note 2)value
Cap rate
value
rate
cap rate(million(%)(million
(%)
(%)
yen)
yen)

Property nameAppraisal
NOI NOI yield(million(%)yen)(Note 4)(Note 3)Hotel

HTL‐01 R&B Hotel Umeda East

Daiwa

2,430

2,460

4.5

2,420

4.3

4.7

119

5.7

HTL‐02 Smile Hotel Namba

Daiwa

1,490

1,500

4.6

1,490

4.4

4.8

75

4.3

REMBRANDT STYLE Tokyo
HTL‐03
Nishikasai

JREI

3,500

3,530

4.3

3,470

4.1

4.4

160

4.2

HTL‐04 BEST WESTERN Yokohama

JREI

3,090

3,110

4.5

3,070

4.3

4.6

146

4.5

The BREAKFAST HOTEL
HTL‐05FUKUOKA TENJIN

Tanizawa

2,040

2,100

4.3

2,010

4.3

4.5

92

4.7

HTL‐06 GLANSIT AKIHABARA

Tanizawa

2,440

2,500

3.9

2,410

3.8

4.1

98

3.9

REMBRANDT STYLE Tokyo
HTL‐07
Nishikasai Grande

Tanizawa

3,110

3,130

4.0

3,100

3.9

4.2

126

4.0

HTL‐08 KOKO HOTEL Osaka Namba

Daiwa

1,780

1,810

4.2

1,770

4.0

4.4

84

4.2

HTL‐09 abeno nini (Hotel)

JREI

3,950

3,960

4.3

3,940

3.7

4.0

175

4.8

HTL‐10 KOKO HOTEL Ginza 1‐chome

JREI

21,10021,3003.5

20,800

3.3

3.6

772

4.3

HTL‐11 KOKO HOTEL Sapporo Ekimae

JREI

7,720

7,790

4.2

7,640

4.0

4.3

346

5.2

HTL‐12 KOKO HOTEL Fukuoka Tenjin

JREI

5,500

5,550

4.0

5,450

3.8

4.1

237

4.7

HTL‐13 KOKO HOTEL Hiroshima Ekimae

JREI

4,430

4,460

4.4

4,400

4.2

4.5

213

5.2

KOKO HOTEL Kagoshima
HTL‐14Tenmonkan

JREI

4,280

4,320

4.9

4,240

4.7

5.0

228

6.0

HTL‐15 KOKO HOTEL Sapporo Odori

JREI

4,370

4,410

4.2

4,320

4.0

4.3

194

4.6

Best Western Plus Fukuoka
HTL‐16
Tenjin‐minami

JREI

4,650

4,650

5.1

4,640

4.5

5.4

263

6.9

Subtotal

75,88076,580‐75,170

‐

‐

3,324

4.8

Total

270,882

273,563‐

268,450‐‐

11,7304.9(Note 1) Under “Appraisal firm,” “Daiwa,” “JREI,” and “Tanizawa” stand for Daiwa Real Estate Appraisal Co., Ltd., Japan Real Estate Institute, and The
Tanizawa Sogo Appraisal Co., Ltd., respectively.
(Note 2) “Appraisal value” is as of July 31, 2024, as the date of value.
(Note 3) “NOI” is net operating income calculated under the direct capitalization method stated in the appraisal report, rounded to the nearest million
yen.
(Note 4) “Appraisal NOI yield” is based on net operating income calculated under the direct capitalization method stated in the appraisal report andexpressed as a percentage of acquisition price, rounded to the first decimal place.

(e) Information on Major Real Estate Properties
Of investment assets, there is no property that falls under the category of major real estate properties (buildings/facilities
pertaining to land recognized to be used collectively, of which total rental revenue accounts for 10% or more of the sum
total of total rental revenue of investment assets) as of July 31, 2024. Of investment assets, the following are top fiveproperties in terms of total rental revenue as of July 31, 2024.
Changes in occupancy rate (%) (Note)
January 31,
2023

July 31, 2022
KOKO HOTEL Ginza 1‐chome

January 31,
2024

July 31, 2023

July 31, 2024

‐

‐

‐

100.0

100.0

La Park Kishiwada

99.5

99.4

98.9

98.7

97.6

Higashi‐Kobe Center Building

86.6

89.2

92.9

91.5

91.5

Suroy Mall Chikushino

96.3

96.3

94.5

92.0

92.5

Funabashi Logistics

91.6

94.7

94.7

94.7

94.7

(Note) “Changes in occupancy rate” is the ratio of leased area to leasable area for each investment asset as of the record date, rounded to the firstdecimal place.

‐ 38 ‐

(f) Top 10 End‐Tenants in Terms of Leased Area
The following table lists the tenants ranking in the top ten tenants in terms of leased area of investment assets.
Name of tenant

Leased area (m2)(Note 1)Name of property occupied

1 Not disclosed (Note 3) Iwatsuki Logistics

As a percentage of
total leasable area (%)(Note 2)Not disclosed (Note 3)

5.9

KOKO HOTEL Ginza 1‐chome
KOKO HOTEL Sapporo Ekimae
2 KOKO HOTELS Co., Ltd. KOKO HOTEL Fukuoka Tenjin
KOKO HOTEL Hiroshima Ekimae
KOKO HOTEL Kagoshima Tenmonkan

27,583.92

5.5

3 Seiyu Co., Ltd.

23,814.87

4.8

Seiyu Minakuchi

4 Not disclosed (Note 3) Funabashi Logistics

Not disclosed (Note 3)

4.4

Matsubushi Logistics

19,833.47

4.0

6 Not disclosed (Note 3) Yokohama Logistics

Not disclosed (Note 3)

3.6

5 Scroll360 Corporation
7 Nagasakiya Co., Ltd.

La Park Kishiwada

15,356.34

3.1

8 FINO Hotels Co., Ltd.

KOKO HOTEL Osaka Namba
KOKO HOTEL Sapporo OdoriBest Western Plus Fukuoka Tenjin‐minami

13,237.42

2.6

12,735.16

2.5

REMBRANDT STYLE Tokyo Nishikasai
9 Rembrandt Inn Co.,Ltd. BEST WESTERN Yokohama
REMBRANDT STYLE Tokyo Nishikasai Grande
10 Not disclosed (Note 3) Baraki Logistics

Not disclosed (Note 3)

2.5

194,703.03

38.9

Total of the top 10 tenants(Note 1) “Leased area” is the sum total of the leased area stated in the lease agreement for each investment asset as of July 31, 2024.
(Note 2) “As a percentage of total leasable area” is the area leased to the tenant expressed as a percentage of the sum total of leasable area of all
investment assets, rounded to the first decimal place.
(Note 3) Not disclosed, because consent for disclosure has not been obtained from the end‐tenants, etc.

(g) Capital Expenditures
a. Schedule of Capital Expenditures for the 17th fiscal period
The following are the principal capital expenditures arising from renovation construction works, etc. in the 18th fiscal
period, currently planned for the assets held by SAR as of July 31, 2024. Please note that the expected construction
amounts include portions that are expensed as a separate account item of accounting costs.
Estimated construction costs(thousand yen)
Name of real estate, etc.
(Location)

PurposeScheduledperiodHonmachibashi Tower(Osaka City, Osaka)

Switch to LED lighting in thecommon and privately owned
areas

Higashi‐Kobe Center Building(Kobe City, Hyogo)

Elevator renewal work

TotalamountAmount ofpayment
duringperiodFrom: Oct. 2024
To: Jan. 2025

62,540‐‐

From: Mar. 2024
To: Sep. 2024

58,000‐‐Urban Center Kanda Suda‐cho Exterior wall renovation work
From: Sep. 2024
(Chiyoda Ward, Tokyo)
and rooftop waterproofing work To: Dec. 2024

55,600‐‐

Honmachibashi Tower(Osaka City, Osaka)

Air‐conditioning equipment
upgrading work

From: Oct. 2024
To: Jan. 2025

53,000‐‐Urban Park Ryokuchi Koen
(Suita City, Osaka)

Exterior wall renovation work

From: Jul. 2024
To: Jan. 2025

52,000‐‐Suroy Mall Chikushino(Chikushino City, Fukuoka)

Renovation work before a new
tenant moves in

From: Aug. 2024
To: Jan. 2025

50,000‐‐Hakata‐eki East Place(Fukuoka City, Fukuoka)

Privately owned area
renovation work

From: Aug. 2024
To: Oct. 2024

49,000‐‐Azabu Amerex BLDG.
(Minato Ward, Tokyo)

Exterior wall renovation work

From: Sep. 2024
To: Jan. 2025

43,500‐‐‐ 39 ‐

Total
amountalreadypaid

Estimated construction costs(thousand yen)
Name of real estate, etc.
(Location)

PurposeScheduledperiodExterior wall renovation work

TotalamountAmount ofpayment
duringperiodFrom: Sep. 2024
To: Jan. 2025

35,500‐‐Urban Center Yokohama West Air‐conditioning equipment(Yokohama City, Kanagawa)
upgrading work

From: May 2024
To: Aug. 2024

34,000‐‐

Matsubushi Logistics(Kitakatsushika‐gun, Saitama)

Air‐conditioning equipment
upgrading work

From: Jun. 2024
To: Sep. 2024

26,700‐‐

KOKO HOTEL Ginza 1‐chome(Chuo Ward, Tokyo)

Room renovation work

From: Jan. 2025
To: Jan. 2025

21,000‐‐Urban Center Fujisawa(Fujisawa City, Kanagawa)Total
amountalreadypaidb. Capital Expenditures during the 17th fiscal period
The following summarizes the primary construction works that constitute capital expenditures implemented for theassets held by SAR as of July 31, 2024, during the 17th fiscal period. Capital expenditures for the 17th fiscal periodamounted to 774,323 thousand yen and, when combined with the 217,551 thousand yen in repair expenses charged tothe same period, it totals 991,874 thousand yen in construction works implemented.
Name of real estate, etc.
(Location)

Purpose

PeriodConstruction costs(thousand yen)

Higashi‐Kobe Center Building(Kobe City, Hyogo)

Elevator renewal work
(No.2・3)

From: Nov. 2023
To: Feb. 2024

94,741

Higashi‐Kobe Center Building(Kobe City, Hyogo)

Elevator renewal work
(No.1)

From: Apr. 2024
To: Jun. 2024

47,415

Higashi‐Kobe Center Building(Kobe City, Hyogo)

Replacement of the chiller on
top of the fourth floor

From: Mar. 2024
To: May 2024

37,556

Urban Center Shin‐Yokohama(Yokohama City, Kanagawa)Exterior wall renovation work

From: Apr. 2024
To: Jul. 2024

37,321

Seiyu Minakuchi(Koka City, Shiga)

Replacement of the second
absorption chiller/heater

From: Apr. 2024
To: May 2024

36,325

KOKO HOTEL Kagoshima Tenmonkan(Kagoshima City, Kagoshima)

Construction of twin rooms

From: Jul. 2024
To: Jul. 2024

30,016‐490,946

Other

‐
Total

‐ 40 ‐

774,323(h) Income Statement by Asset Type (Use)

Office total

Retail total

Residence
total

Logistics
facility total

Hotel total

Portfolio
total

2,427,977

1,235,224

1,379,914

962,609

2,042,277

8,048,003

2,247,057

1,109,651

1,314,507

923,628

2,040,958

7,635,803

180,919

125,573

65,40638,981

1,318

412,199730,293462,298

396,736

173,660

258,1822,021,171

Management fee

186,154

144,885

86,29335,011

13,784

466,129

Utilities expenses

169,938

152,030

18,526

39,2182379,716

Taxes and dues

195,707

88,18091,70175,664

148,149

599,404

Repair expenses

76,617

17,89087,363

13,052

22,626

217,551

Trust fee

8,263

4,678

8,249

3,000

6,271

30,462

Insurance premium

6,354

3,289

4,803

2,461

3,801

20,709① Total operating revenue from(thousand yen)real estate leasing
Rental revenue
Other lease business revenue② Total operating expenses
from real estate leasing(thousand yen)

87,25851,342

99,797

5,253

63,547

307,198③ NOI (①‐②)

Other(thousand yen)

1,697,683

772,926

983,178

788,948

1,784,094

6,026,831④ Depreciation(thousand yen)

311,701

105,539

163,199

158,772

295,462

1,034,674⑤ Operating income (loss) from(thousand yen)real estate leasing (③‐④)

1,385,982

667,387

819,978

630,176

1,488,631

4,992,156⑥ Capital expenditures(thousand yen)449,674

112,492

48,338105,450

58,367774,323⑦ NCF (③‐⑥)(thousand yen)

1,248,009

660,433

934,839

683,498

1,725,726

5,252,508

Acquisition price(million yen)

74,94727,75438,94329,95069,544

241,138

Book value at end of period(million yen)

75,901

27,73939,53429,044

69,178241,398

Estimated value at end of period(million yen)

83,54029,19048,49133,78175,880270,882

Occupancy rate at end of period
End of July 2022

93.7%

98.6%

97.5%

97.8%

100.0%

97.2%

End of January 2023

94.3%

98.6%

97.5%

98.6%

100.0%

97.6%

End of July 2023

96.9%

97.9%

97.1%

98.6%

100.0%

97.9%

End of January 2024

96.5%

97.0%

95.5%

98.6%

100.0%

97.5%

End of July 2024

97.4%

96.7%

96.9%

98.6%

100.0%

97.8%‐ 41 ‐