1st Period Result(Ended February 2016)

Japan Senior Living Partners, Inc. April 15, 20160

Table of Contents
Highlights of 1st fiscal period (2016/2) and future initiatives

2

1st fiscal period (2016/2) financial results: Performance highlight3

Earning forecasts of 2nd fiscal period (2016/8) and 3rd fiscal period (2017/2)

4

Portfolio overview ①

5

Portfolio overview ②

6Investment targets policies and overview of our portfolio

7

External Growth Strategy

8

Pursuit of external growth based on diversified acquisition methods

9

Stable cash flow through a long-term lease agreement with fixed rent and high management capabilities

10

Portfolio management performance

11

Internal growth strategy

12Back-up Operation Functions

13

Classification of senior living facilities by type14

Typical earnings structure of senior living facilities

15

Characteristics of senior living facilities by type16

Diverse Support from 6 Companies with Proven Track Records

17

SOMPO Holdings enters the nursing-service business

18

Financial Highlights (as of the end of 1st fiscal period (2016/2))

19

Unitholders’ special-benefit program (1st fiscal period (2016/2))

20

Unitholder Information (as of the end of 1st fiscal period (2016/2))

21

Appraisal values (as of the end of 1st fiscal period (2016/2))

22

1

Highlights of 1st fiscal period (2016/2) and future initiatives

External growthInternal growthHighlights

JSL acquired 14 properties for 27,965 m. yen (total acquisition price), and waslisted on the TSE REIT market on July 29, 2015.
Will grasp operators’ needs, and acquire properties
based on JSL’s own network and the sponsor

Since the listing, it has found many candidate properties of acquisition for
healthcare and related facilities, including senior living facilities, intermediate

company functions
Will utilize diversified acquisition methods, based on

nursing homes facilities, and hospitals.

joint investment with the sponsor, etc., including

Acquired silent partnership equity of limited liability company, whose assets consists

capital investment from silent partnershipof five medical facilities (intermediate nursing homes facilities) (as of March 28,

investments

2016; 200 m. yen).

JSL promoted mid-/long-term trust building with operators, through appropriatemonitoring.
Will continue to promote appropriate monitoring,
and aim to reduce operation risks

It continued to offer proposals and discussions for operators, regarding repair &Based on monitoring results, will promote proposals

renovation and management & sales methods, and promoted further revenue

for improvement measures and strategic

stabilization.

repair/renovation, and then realize sustained

In the 1st fiscal period, JSL maintained a 100.0% occupancy rate(based on

steady cash flow

contract) , (average of actual occupancy rate(based on end-tenants) was 88.2%.)

Financialstrategy

Future initiatives

JSL built a steady long-term financial foundation, and secured financial reserves.

Will grasp macro-environmental changes due to thegovernment’s introduction of negative interest

Averageremainingborrowing
period4.3 years

Averagecost of interestbearing debt

Long-term
borrowing
ratio

0.92%

93.3%

rates, and accordingly pursue much longer

LTV

borrowing periods and interest cost reduction

42.5%



Will build a steady long-term financial foundation,
aiming at a 40%-level LTV2

1st fiscal period (2016/2) financial results:
Performance highlightThe nominal period of the 1st fiscal period is from May 12, 2015 (foundation of this investment corporation) to Feb. 29, 2016 (294days)
The actual period of asset management is from Jul. 29, 2015 (the listing date) to Feb. 29, 2016 (216 days)

Balance sheet—overview
Item(m. yen)PL statement—overview

1st fiscal
period(ended Feb.
2016)
ActualItem

Current assets
Cash and deposits
Other

5,423
155

Noncurrent assets
Property, plant and equipment

28,529Intangible assets

1,039

Investment, other assets
Total assets

134
35,283Current liabilities
Short-term borrowings
Other

1,000

(m. yen)
1st fiscal period(ended Feb.
1st fiscal period
2016) forecast(ended Feb.
(interim account2016)
settlement, Dec.
Actual14, 2015
announcement)

Increase/decrease,againstforecast

Major factors ofdifference

Operating revenue

1,152

1,152

0

Operating expense

680

650

△ 29

Leasing business expense(excluding depreciation)

90

60

△ 30

Depreciation

405

405

0

Operating income

472

502

29

Non-operating income

0

0

0

Non-operating expense

287

288

1

Ordinary income

185

214

28

316

Noncurrent liabilities
14,000Net income

184

212

27

Leasehold and security deposits
received

3,382

DPU (yen)

2,181

2,509

328

Trust tenants lump sum deposits

839

Long-term borrowings

Decrease in tax andduties △24

Total liabilities

19,538

Total net assets

15,744

Total liabilities and net assets

35,283(Reference)
No. of issued investment units
Leasing NOI (Note 1)

84,7501,092 m. yen

FFO (Note 2)

617 m. yen

NAV per unit (Note 3)

191,238 yen(Note 1) Leasing NOI=“leasing business revenue” - “leasing business expense” ＋ ” depreciation”(Note 2) FFO=“net income” ＋ “depreciation”(Note 3) NAV per unit ＝”period-end net asset amount” - “distribution amount” + “period-end appraisal value” - “tangible fixed assets”

3Earning forecasts of 2nd fiscal period (2016/8)
and 3rd fiscal period (2017/2)(m. yen)
2nd fiscal period(ended Aug. 2016) forecast

Item

Operating revenue

1st fiscal
period actualThis forecast(A)(B)

3rd fiscal period(ended Feb. 2017) forecast
Major factors of difference

Increase/decrease(B)-(A)This forecast(C)

Increase/decrease(C)-(B)

1,152

978

△ 173 (Note 1)

987

8

1,152

974

△ 178 (Note 1)

974

-

-

4

4

13

8

650

609

△ 40

618

9

60

118

124

6

Depreciation

405

303

△ 101 (Note 1)

303

0Operating income

502

369

△ 132 (Note 1)

369

△0

0

0

0

-

71

△0

Leasing business revenue
Distributions received
Operating expense
Leasing business expense (excluding
depreciation)

Non-operating income

Silent partnership distributions(Note 2)

Tax and duties +72 (for 1st fiscal
57 period; accounted as fixed asset
acquisition cost)△0
For 1st fiscal period, 197 was
allocated as IPO expense (new△ 217
investment unit delivery expense,
etc.)

Non-operating expense

288

71

Ordinary income

214

298

84

298

0

Net income

212

297

84

297

0

DPU (yen)

2,509

3,506

996

3,506

0

Major factors ofdifference

Silent partnership
distributions (Note 2)

Increase in repair expense＋5(Note 1) The difference between the 1st fiscal period and the 2nd fiscal period in terms of the length of the asset management period (the 1st fiscal period’s actual asset management period is 216 days;the 2nd fiscal period’s assets management period is 184 days).
(Note 2) The silent partnership distributions from KSLF8 limited liability company’s silent partnership investment-capital-equity that this investment corporation acquired as of March 28, 2016.

4

Portfolio overview ①
Details on portfolio
Acquisition priceTotal appraisal value

27,96529,306

JPY mil

JPY milPortfolio appraisal
NOI yield# of operators

6.0%

11

S-13 Alpha Eniwa Sta. Nichiguchi
Re-development Building
S-10 Ten
S-11 Irise Nihisoka

Tokyo area
% share of
total acquisition
price:

Joy Stage Hachioji(Hachioji, Tokyo)

36.4%

Nichii Home
Tama Plaza(Kawasaki-shi,
Kanagawa)

Nichii Home
Nakano Minamidai(Nakano-ku,
Tokyo)

Yuimaru
Hijirigaoka(Tama-shi,
Tokyo)

S-6 Activa Biwa
S-8 Granda Mondo Yakujin

Irise Kamata Yuseien

S-9 Excellent Nishinomiya(Ota-ku, Tokyo)

S-14 Gran Hills Ogawarako
S-7 Sompo Care
Lavire Kobe Tarumi(Note)

Osaka area
% share of
total acquisition
price:

38.5%

Activa Biwa
(Otsu-shi, Shiga)

Sompo Care
Lavire Kobe Tarumi(Note)(Kobe-shi, Hyogo)

Granda Mondo Yakujin(Nishinomiya-shi, Hyogo)

Excellent Nishinomiya(Nishinomiya-shi,
Hyogo)

Mid-size cityarea
% share of
total acquisition
price:

14.5%

S-12 Sawayaka Sakura Nibankan

S-5 Irise Kamata Yuseien
S-3 Nichii Home Nakano MinamidaiTen (Sapporo-shi,

Irise Nishioka

Hokkaido)(Sapporo-shi,
Hokkaido)

Sawayaka Sakura
Nibankan (Akita-shi,

S-2 Nichii Home Tama Plaza

Akita)

S-4 Yuimaru Hijirigaoka

Others% share of
total acquisition
price:

10.6%

S-1 Joy Stage Hachioji

Alpha Eniwa Sta.
Nishiguchi
Re-development
Building

Grand Hills Ogawarako(Kamikita-gun, Aomori)(Eniwa-shi, Hokkaido)(Note) On April 1, 2016, the name was changed from “Rest Villa Kobe Tarumi” to “Sompo Care Lavire Kobe Tarumi” (hereinafter, the same)

5

Portfolio overview ②
Propertyno.

Facility
type

Property nameLocation

Acquisition price(m. yen)No. of rooms

ActualOccupancyrate(Based on

As of:

Operator

end-tenants)(Note 1)

S-1

With nursing

Joy Stage Hachioji

Hachioji City, Tokyo

3,675

232

91.8% Dec 1, 2015

NM LIFE Co., Ltd.

S-2

With nursing

Nichii Home Tama Plaza

Kawasaki City,
Kanagawa

2,500

160

88.1% Dec 1, 2015

Nichii Carepalace Company

S-3

With nursing

Nichii Home Nakano Minamidai

Nakano Ward, Tokyo

1,740

83

88.0% Dec 1, 2015

Nichii Carepalace Company

S-4

Residence
type

Yuimaru Hijirigaoka

Tama City, Tokyo

1,175

71

100.0% (Note 2) Dec 4, 2015

Community.Net Co., Ltd.

S-5

With nursing

Irise Kamata/Yuseien

Ota Ward, Tokyo

1,100

48

100.0% (Note 2) Feb 1, 2016

Hasegawa Care Service Co., Ltd.

S-6

With nursing

Activa Biwa

Otsu City, Shiga

6,940

384

83.3% Jan 1, 2016

UNIMAT Retirement Community Co., Ltd.(Note 3)

S-7

With nursing

Sompo Care
Lavire Kobe Tarumi (Note 6)

Kobe City, Hyogo

1,900

100

90.0% Dec 1, 2015

Sompo Care Next Inc (Note 4)

S-8

Residence
type

Granda Mondo Yakujin

Nishinomiya City, Hyogo

1,180

62

98.4% Dec 1, 2015

Benesse Style Care Co., Ltd.

S-9

With nursing

Excellent Nishinomiya

Nishinomiya City, Hyogo

750

67

100.0% (Note 2) Jan 17, 2016

S-10

With nursing

Ten

Sapporo City, Hokkaido

2,285

85

91.8% Jan 1, 2016

Social Welfare Corp. Note Fukushi Kai

S-11

Residencetype

Irise Nishioka

Sapporo City, Hokkaido

800

83

83.1% Oct 1, 2015

Hasegawa Care Service Co., Ltd.

S-12

With nursing

Sawayaka Sakura Nibankan

Akita City, Akita

960

92

100.0%

S-13

Residence
type

Alpha Eniwa Sta. Nishiguchi Saikaihatsu
Building

Eniwa City, Hokkaido

1,600

73

47.9% (Note 7) Feb 2, 2016

Hasegawa Care Service Co., Ltd.

S-14

Elderly homewith service

Gran Hills Ogawarako

Kamikita District, Aomori

1,360

103

100.0% (Note 2) Jul 31, 2015

Silver Town Ltd.

27,965

1,643

Total/Average

Jul 1, 2015

Excellent Care System T Co., Ltd.

Sawayaka Club Co., Ltd.

88.9％ (Note 5)(Note 1) Actual occupancy rates (Based on end-tenants) are calculated by dividing the no. of end-tenants, which is provided in the disclosure statement, by the no. of rooms, and is rounded to the first decimal place. Meanwhile, the rate of “Gran Hills
Ogawarako“ is based on the data submitted by the operator.
(Note 2) Since the actual occupancy rates (Based on end-tenants) for Yuimaru Hijirigaoka (Actual occupancy rate: 109.9%), Irise Kamata/Yuseien (102.1%), Excellent Nishinomiya (104.5%), and “Gran Hills Ogawarako“ (121.4％) exceed 100%, the nominal
rates are presented here respectively as 100%
(Note 3) UNIMAT SOYOKAZE Co., Ltd. changed its company name to UNIMAT Retirement Community Co., Ltd. on October 1, 2015.
(Note 4) Watami no KAIGO Co., Ltd. changed its company name to Sompo Care Next Inc. on Dec 1, 2015.
(Note 5) The average of actual occupancy rate (Based on end-tenants) was calculated with the actual occupancy rates of “Yuimaru Hijirigaoka,” “Irise Kamata/Yuseien,” “Excellent Nishinomiya,” and “Gran Hills Ogawarako,” respectively, as 100.0％.
(Note 6) On April 1, 2016, the name was changed from “Rest Villa Kobe Tarumi” to “Sompo Care Lavire Kobe Tarumi” (hereinafter, the same).
(Note 7) The Actual occupancy rate of “Irise Eniwa,” which is located on the 4th–6th floors of Alpha Eniwa Sta. Nishiguchi Saikaihatsu Building, is shown.

6

Investment targets policies andoverview of our portfolio
 JSL aims at a diversity of facility types, regions, sizes and operators.
Investment Targets
Medical facilities

Senior living facilities
70% or more

Investment target ratio by area

Senior living facilities 70% or more

30% or less

Investment
targets

Fee-based homes for theelderly (with nursing care)Fee-based homes for theelderly (residential)
Fee-based homes for theelderly (health-type)Serviced housing forthe elderly
Other

Others20％ or less

Medical facilities 30% or less


Hospitals
Clinics
Medical malls

Investment
target ratio
by areaIntermediate nursing
homes
Other

Three major
metropolitan areasand core cities
80％ or more

Overview of our portfolio① Facility type② Operator③ Location⑤ Nursing level④ Scale(Note 3)

Excellent Care System T Co., Ltd.
Serviced housing for the elderly

4.9%
Fee-based homes
for the elderly (residential)

2.7%

Fee-based homes for the
Sawayaka Club Co., Ltd.
elderly
3.4%(with nursing care)Community.Net Co., Ltd.

78.1%

UNIMAT Retirement
Community Co., Ltd.

24.8%

4.2%

500 million yen
to less than
1 billion yen
3 properties
2,510 million yen

5 billion yen or
more 1 property
6,940 million yen

9.0%

24.8%

Benesse Style Care Co., Ltd.

7.2%

4

Indepe
ndent
21.4%

12.9%

4.2%

17.0%

Nursing- 5
Nursing-

Silver Town Ltd.

Breakdown byfacility type4.9%
Sompo Care next Inc.

6.8%

Breakdownby operator

Social Welfare Corp.
Note Fukushi Kai

Nursing- 3

Breakdown
by scale

Nichii Care Palace Company

15.2%

8.2%
Hasegawa Care Service
Co., Ltd.

NM LIFE Co., Ltd.

12.5%

13.1%

10.6%

Averagenursing level
1.7

Support- 1
9.6%

Support1 billion yen
to less than
2 billion yen
7 properties
10,055 million yen

36.0%

2

2 billion yen to less than
3 billion yen 2 properties
4,785 million yen

3 billion yen
to less than
5 billion yen
1 property
3,675 million yen

Nursing- 2
13.3%

6.0%
Nursing- 1
19.1%(Note 1) The three major metropolitan areas are the Kanto area, the Osaka metropolitan area and the Nagoya metropolitan area.
13.1%
The core cities are ordinance-designated cities, mid-size city areas and special cities, excluding the three major metropolitan areas.
17.1%(Note 2) The ratios presented in ①–④ above are based on acquisition prices.
(Note 3) The “Nursing level” represents the ratios, by support/nursing level, of residents against the total no. of residents. The “Average nursing level” represents the “Total of (A x B)’s” divided by C: A=“No. of residents by nursing level defined by thedisclosure statement”; B=”0” for independent, ”0.375” for support-1, “1” for support-1, or ”1-5” respectively for nursing-1 to nursing-5; and C=“Total no. of residents.” The data are based on the disclosure statement or the operator’s submitted materials.
The points of time for the data are based on the description on the previous page (hereinafter, the same, unless otherwise provided for).

7External Growth Strategy
Use of multi-pipeline
Deals to change ownership

Sponsor’s network

Sale-and-leaseback deals

ORE Strategy

Operators
New development deals

Asset manager’s network
Deal to change ownership

ORE (Operator Real Estate) Strategy
Operator`s needs
Expansion and optimization of businessSpecialization in operation based on separation

Sale and leasebackof ownership and operation
Diversification of fund procurement methods

Streamlining the balance sheet
Avoiding real estate ownership risks

New development

ORE Strategy
Providing solutions through partnership

JSL/Asset manager functions
Stable, long-term facility ownershipPrecise facility maintenanceTrust based on operational

understanding

Sponsor functions

Support for new development
Provision of M&A information, etc.
 Operational
support/suggestions
improvement

forSale-and-leaseback deals: six facilities, 14,900 m. yen (53.3％) (Note)

Activa Biwa (residential buildings)

Joy Stage Hachioji

Yuimaru Hijirigaoka

Sawayaka Sakura Nibankan(Note) Percentages indicate the value out of the total acquisition price.

Ten

Excellent NishinomiyaSupport for new development
Support for fund procurement

Operational support/suggestions

for improvement
Building/facility maintenanceNew development: four facilities, 5.7 bn. yen (20.5％)

Activa Biwa (care center buildings)

Alpha Eniwa Sta. Nishiguchi
Saikaihatsu Building

Gran Hills Ogawarako

Rest Villa Kobe Tarumi

8Pursuit of external growth based on diversified
acquisition methods
 Based on joint-capital-investment with the sponsor, JSL has acquired equity interest in silent
partnership, and has accordingly obtained preferential negotiation rights to five medical facilities(March 28, 2016)
Overview of equity interest in silent partnership
KSLF8 limited liability company (Note 1)(Assets)(Liabilities)

Real-estate-trust beneficiaryright, etc. (Note 2):
12,010 m. yen

Non-recourse loan:

 KSLF8 limited liability company owns, as managed assets, five intermediate nursing
homes facilities located in the three major metropolitan areas. JSL has acquired KSLF8’s
equity interest in silent partnership through joint-capital-investment with Kenedix, Inc.
(the sponsor), etc.
 When JSL acquired the equity interest in silent partnership, it also acquired thepreferential negotiation right to managed-assets acquisition, which allows JSL to conduct
preferential negotiation with the entity at a price of 11,650 m. yen or more, submitting a
notice of purchase by March 29, 2019.
 Regarding managed-assets acquisition, the assumed distribution yield from the equity
interest in silent partnership is 11.0%. (Note 4)

7,500 m. yen(Capital)
Silent partnership capital, etc.
(Note 4): 4,510 m. yen

Preferential
negotiation rightto acquisition was
obtained.

Joint investment (Note 3)

JSL

Kenedix

Other(approx. 4.4％)(approx. 82.3％)(approx. 13.3％)

Note 1: An overview of silent partnership’s balance sheet as of March 28, 2016 is presented.
Note 2: The total value of real estate appraisal for the managed assets as of Jan. 1, 2016 is 12,320 m. yen.
Note 3: Regarding the silent partnership capital, this investment corporation invested 200 m. yen (approx. 4.4％ of
the total), and Kenedix, Inc. invested 3,710 m. yen (approx. 82.3％ of the total), as of March 28, 2016
Note 4: Assumed distribution yield = “the total volume of assumed silent partnership distributions that thisinvestment corporation received” divided by “the acquisition price of 200 m. yen” (finally annualized and rounded
to the first decimal place). This is on the assumption that there was no change in the tenant agreement as of thedate when JSL acquired this equity interest in silent partnership, and that this limited liability company managed
the trust beneficiary right for three years.

Managed assets related to equity interest in silent partnership
Minimum purchase price provided
by the preferential negotiation
right

11,650Property nameCanadian Hill

Anesis Hyogo

Orage Suma

Rococo-riha

Anesis Teradacho

Location

Kobe, Hyogo

Kobe, Hyogo

Kobe, Hyogo

Toyonaka, Osaka

Osaka city, Osaka

Appraisal value

1,950 m. yen

1,490 m. yen

2,950 m. yen

2,200 m. yen

3,730 m. yen(Note) The operator of the managed assets is KouyuKai Healthcare Corporation.

m. yenTotal of appraisal values

12,320m. yen9

Stable cash flow through a long-term lease agreement with fixed rent andhigh management capabilities
 Long-term lease agreement with fixed rent
 Discerning operator selection
Selection of operator with management track record

Stable cash flow through a long-term lease agreement with fixed rent
Average leasing period

Average remaining period oflease

Fixed-rent ratio

17.5 years

100.0%

23.6 years

5 years toless than
20 years or more
10 years: 1 property
100.0%

8.9%

Lease
agreement
period10 years to less than
15 years: 4 properties

Lease agreement
period remaining

42.7%







High degree of
specialization
Wealth ofexperience
Human networks

June 2,
1975

42,537

154

4,665(4,395)

Listed on JASDAQ on theTokyo Stock Exchange

Nichii Carepalace
Company

June 22,1964

18,44566

4,255(4,152)

Subsidiary of Nichii Gakkan
Company, which is listed on
the first section of theTokyo Stock Exchange

NM LIFE Co., Ltd.

October 5,
1995

908

1

263
(232)

100% subsidiary of IriscareInc., which is unlisted

Hasegawa Care Service November 1,
2006
Co., Ltd.

14,04774

4,352(4,330)Unlisted(Note 1)20 years or more:
6 properties

29.1%

100.0%

Fixed-rent ratio
15 years toless than 20 years:
3 properties

19.3%

The Highly Specialized, Abundantly Experienced Members of
Our Asset Manager
Asset Manager’s
operational ability
enhanced

Facilities
operated

UNIMAT Retirement
Community Co., Ltd.

(Note 1) The data is as of the end of the 1st fiscal period (ended Feb. 2016). The ratios are based on acquisition prices.
(Note 2) If an acquisition asset involves multiple tenants, the data is based on the leasing agreement with the operator,
who is the major tenant.

Officers and personnel
dispatched fromsponsors

Revenue(millionyen)

Operator

Stablecash flow
achieved

Established(Note 2)

No. of rooms(capacity) (Note 2)

Listed/unlisted

Social Welfare Corp.
Note Fukushi Kai

June 13,
1983

5,354

38

1,433
(779)

Unlisted

Sompo Care Next Inc.

November
11,
1992(Note1)35,404114

8,805(8,651)

Subsidiary of Sompo Japan
Nipponkoa Holdings, Inc.,
which is listed on the firstsection of the Tokyo Stock
Exchange

Bennesse Style Care
Co., Ltd.

September
7,
1995

86,698291

15,595(16,185)

Consolidated subsidiary ofBenesse Holdings, which islisted on the first section of
the Tokyo Stock Exchange

Community Net Co.,Ltd.

June 24,
1998

1,060

9

859
(447)

Unlisted

Sawayaka Club Co.,Ltd.

December 1,
2004

12,48664

3,925(3,892)

Consolidated subsidiary of
UCHIYAMA HOLDINGS Co.,
Ltd., which is listed on thefirst section of the Tokyo
Stock Exchange

Excellent Care System
T Co., Ltd.

June 2,
2004

2,590

16

542
(517)

Unlisted

February 25,
2003

155

3

187
(177)

Unlisted(Note 1)Silver Town Ltd.

(Note 1) The figures for “Revenue” are based on the information obtained when this document was prepared.
(Note 2) The figures for “Facilities operated ” and “No. of rooms (capacity)” are as of December 31, 2015.

10

Portfolio management performance Has continued to offer proposals on repair & renovation, and proposals and consultation on operation &sales methods based on monitoring; and has stably maintained and improved portfolio revenue
Average of actual occupancy rate

Moving-in rate (Note 4)
16.3％(Based on end-tenants) (Note 3)

88.2％
Actual occupancy rate and Revenue (Jul.–Dec. 2015)(m. yen)

売上高
Sales

600
87.8%

88.1%

Moving in and Moving out (Jul.–Dec. 2015)

Actual occupancy rate (Based on end-tenants)
入居率
87.9%

88.6%

88.7%

88.4%

Moving-out rate (Note 4)
15.5％(Residents)# of Moving-in
入居者数# of Moving- out
退去者数# of Moving-in －# of Moving-out
入居者数-退去者数

40
90.0%
30

500
80.0% 20
31

28
10

400
519

521

528

541

539

541

300

70.0%

60.0%

18

29

18

17

Net
increase:
７

0
-10

-17

-22

-19
-26

-25

-25

Nov. 2015

Dec. 2015-20
200
Jul. 2015

Aug. 2015

Sep. 2015

Oct. 2015

Nov. 2015

Dec. 2015

50.0% -30
Jul. 2015

Aug. 2015

Sep. 2015

Oct. 2015(Note 1) “Actual occupancy rate(Based on end-tenants) ,” “Revenue,” “Moving in,” and “Moving out” are based on data from materials submitted by the operators. However, the data of“Granda Mondo Yakujin” were not disclosed because the operator did not authorize such disclosure, and accordingly were not included in the respective data items. “Revenue” represents
the value of the total revenue of senior living facilities, excluding “Granda Mondo Yakujin.”(Note 2) “Actual occupancy rate rate(Based on end-tenants) “= “Total no. of tenants in portfolio” divided by “Total no. of rooms” (rounded to the first decimal place)(Note 3) A simple average of the actual occupancy rates (Based on end-tenants) during the six months from Jul. to Dec. 2015 is presented.
(Note 4) Total “Moving in” and total “Moving out” were divided by the total capacity (during the six months from Jul. to Dec. 2015), and then annualized for presentation.

11

Internal growth strategy
Will realize steady revenues based on systematic monitoring, and will maintain property competitiveness based on
appropriate maintenance

Investment criteria for individual
property(at acquisition)

Real estate・Location
・Specs. of building/equipment
・Suitability for business model・Versatility

Operator

Management process after property acquisition
Monitoring
・Will utilize regular site-visits and management
reports, comprehend the status, and evaluate thesituation・Will conduct management interviews, etc.

If a management issue arises…

Step-in
Additional strategic
investment
・Efficient utilization of CAPEXAppropriate
maintenanceCause analyses andimprovement measures will
be carried out
Added security deposit
Backup operators will beselected・Management philosophy
・History and operation
・Financial credit

High occupancy rate and competitiveness will bemaintained Asset value will be maintained/improved

Rental-rates
maintained/improved
Operation
・Business revenue (rent-paying
capacity)・Service quality
・Market environmentReplacementReplacement to handle
operators’
management failure

ORE strategy carried out
・Sale and leaseback
・New development
12

Back-up Operation Functions
Stable management through the high specialization and abundant experience of the asset management company



Preserving the continued stability of our residents through back-up operation functions

Our Operators
UNIMAT Retirement Community Co., Ltd.
Nichii Carepalace Company
NM LIFE Co., Ltd.

Hasegawa Care Service Co., Ltd.

Social Welfare Corp. Note Fukushi Kai

Sompo Care Next Inc.

Silver Town Ltd.

Sawayaka Club Co., Ltd.

Bennesse Style Care Co., Ltd.

Excellent Care System T Co., Ltd.

Sublease agreement

Sponsor support agreements

Back-up operation arrangements

SponsorsSome
operatorsof oursponsors

Some operatorsof our facilities(Nine firms)
13

Classification of senior living facilities by type
For persons living on their own

For persons requiring nursing care

Mid-price range

High price range

Mid-price range

High price range

DemandPotential demand

△

◎

○

Monthly
housing charge

JPY 100,000 to less than
JPY 300,000

JPY 300,000 or more

JPY 100,000 to less than JPY
300,000

JPY 300,000 or more

Living floorarea

25～50㎡

50～100㎡

15～25㎡

18～25㎡

Properties
within a room

Sharedequipments

Washroom, air conditioner, bathroom, kitchen, etc.

Washroom, air conditioner, etc.

Dining room, kitchen, publicbathroom, lounge, coffee
Dining room, kitchen, bathroom (for individual, public bath room
Dining room, kitchen, lounge,
corner, theater, Karaoke room, and mechanical bathroom), helper station, health managementetc.
hobby room, fitness room,
room, lounge, rehabilitation room, etc.
guest room, etc.

(Note 1) The above chart shows, in a simplified manner, the general features of demand, monthly housing charge, living floor area, room amenities and shared amenities assumed by theInvestment Corporation to pertain to the mentioned types of senior living facilities.
(Note 2) The monthly housing charge is calculated as follows: “the amount of lump sum received, if any, divided by the No. of months of the amortization period defined by the tenant
agreement” + “the monthly usage charge (including meal charges).”14

Typical earnings structure of senior living facilities
 JSL receives stable fixed rent fee by senior living facilities
 The level of risk of the social security system may vary, due to dependence on public pay

Private pay

Users

Influence of the social security system

Senior living facilities

Public pay

Fee

Real estate service

Nursing
serviceNursing careinsurance system

Insurance. fee
Hospitality service

Medical service

Health insurance
systemFixed rent
The Investment Corp.

Distribution
Investors(Note) This is a schematic chart designed by JSL to show the typical earnings structure of a senior living facility.

15

Characteristics of senior living facilities by type
Average Required level of nursing for Senior living facilities and distribution of monthly paid fee

High（thousand yen）

600

High price range for thosetrying to live on their own

Activa Biwa

High price range for thoserequiring nursing care

(Nursing)

Nichii Home
NakanoMinamidai

500

Monthly charged fee

Ten（On one’s own）

（On one’s
own）

300

Granda Mondo
Yakujin

Activa Biwa

Mid-price
range forThose requiring
nursing care

Yuimaru
Hijirigaoka

200

Irise
Kamata/Yuseien

Sompo Care
Lavire Kobe
Tarumi
Yuimaru
Hijirigaoka（On one’s own）

Ten
(Nursing)

Nichii Home
Tama Plaza(Nursing)（On one’s own）

Excellent
Nishinomiya

Mid-price range
for those on their own

100

Low

Joy Stage Hachioji(Nursing)

Volume zone

New demand400

Joy Stage
Hachioji

Irise Nishioka

Irise Nishioka

Sawayaka
SakuraNibankan

Gran Hills
Ogawarako

0

0.0

0.5

Low

1.0

1.5

2.0

2.5

Level of required nursing care

(Note) This is a simplified chart designed by JSL to organize the features of the senior living facilities in its portfolio.

3.0

3.5

High
16

Diverse Support from 6 Companies
with Proven Track Records
Sponsor support agreements
Preferential
negotiating
right

60% shareholder
Listed on the first section of theTokyo Stock Exchange
Notable track record as a sponsor
for 5 listed investment corporations

Development

Information
provision

Warehousing

Renovation/
maintenanceHuman
support orprovision ofexpertise

Backupoperator

Financialaffairs

5% shareholder
Healthcare/finance pioneer
capable of accurate risk
analysis and management

Kenedix, Inc.

Shinsei Bank,
Limited20% shareholder
Operates 22 senior living facilities
through subsidiary of
Seikatsu Kagaku Un-Ei Co.,
Ltd. and 10 senior living facilities
through CENTURY LIFE

5% shareholder
Real estate agent, realestate management, topclasstrack record as a trust bank

HasekoCorporation

Mitsubishi UFJ
Trust and Banking
Corporation

LIXIL Group Corporation

5% shareholder
Operates 5 senior living facilities
through subsidiary of LIXILSENIOR LIFE COMPANY

5% shareholder (Note1)
Operates senior living facilities
through related company of
Cedar Co., Ltd. and subsidiary of
Sompo Care Next Inc.

Sompo Japan Nipponkoa
Holdings, Inc.

(Note 1) The investment ratio is the ratio of the total shares issued by the Asset Management Company to the number of shares held by the Sponsor Company (in the case of Sompo Japan
Nipponkoa Holdings, Inc., the number of shares held by its subsidiary, Sompo Japan Nipponkoa Insurance Inc.).
(Note 2) “Preferential negotiating right”: With regard to real estate that the Sponsor Company or its group firms own, the Sponsor Company assumes liability to provide or to strive toprovide information on sales of real estate to the Asset Management Company no later than such information provision to parties other than the Asset Management Company inany given situation. Even when preferential negotiating rights or the support of information provision is applicable, the Sponsor Company does not assume liability to sell real estate17
at the price requested by the Investment Corporation.

SOMPO Holdings enters the nursing-service business
Enhanced and accelerated efforts in the nursing-service market
Sep. 2012

Capital investment in CEDAR CO.,LTD. through a limited partnership for investment business (equity: 34.0％)

May 2014

Capital investment in Japan Senior Living Partners, Inc. (equity: 5.0％)

Mar. 2015

Capital/business alliance with Message Co.,Ltd. (equity: 3.5％)

Dec. 2015

Made Watami Nurshig Services Co., Ltd. a full subsidiary (currently, Sompo Care Next Inc.) (equity: 100％)

Mar. 2016

Made Message Co.,Ltd. a subsidiary (equity: 94.6％(Note 2))(Note 1) The data for employees, revenue, and facilities/bases are as of the end of March 2015.
(Note 2) The figures of Sompo Japan Nipponkoa Holdings, Inc. (equity: 91.13%) and Sompo Japan Nipponkoa Insurance Inc. (equity: 3.5%) are totaled, and rounded to the first decimal place.

18

Financial Highlights(as of the end of 1st fiscal period (2016/2))
Overview of interest-bearing debt (Note 1)

Classification
Series 1-A(Short-Term)

LenderBalance(million yen)Interest rate (Note 2)

Repayment
date

1,000

Base interest rate (JBA
one month yen TIBOR)+0.3%

July 29,2016

Shinsei Bank, Limited; Sumitomo Mitsui Banking
Corporation
Short-term borrowings total

Series 1-B(long-term)
Series 1-C(long-term)
Series 1-D(long-term)

Shinsei Bank, Limited; Sumitomo Mitsui Banking Corporation;
Mitsubishi UFJ Trust and Banking Corporation; Mizuho Bank,
Ltd.; Nippon Life Insurance Company
Shinsei Bank Limited; Sumitomo Mitsui Banking Corporation;
Mitsubishi UFJ Trust and Banking Corporation; Mizuho Bank,
Ltd.; Resona Bank; Mizuho Trust & Banking Co., Ltd.
Shinsei Bank Limited; Sumitomo Mitsui Banking Corporation;
Mitsubishi UFJ Trust and Banking Corporation; Mizuho Bank,
Ltd.; Sompo Japan Nipponkoa Insurance Inc.

3,500
6,000
4,500

Long-term borrowings total

14,000Borrowings total

15,0000.4352%
per annum interest
rate
0.7287%
per annum interest
rate
1.1145%per annum interest
rate

Mizuho Trust &Nippon Life

Banking

Insurance

Lender

3.3%

3.3%

Shinsei Bank, Limited
Sumitomo Mitsui
Banking Corporation
Mitsubishi UFJ Trust andBanking Corporation
Mizuho Bank, Ltd
Sompo Japan Nipponkoa
Insurance Inc.
Resona Bank
Mizuho Trust & Banking
Co., Ltd
Nippon Life Insurance
Company
Total

3.3%
Sompo Japan Nipponkoa
Insurance
6.7%

Shinsei Bank
29.0%

Mizuho Bank
8.7%

Mitsubishi UFJ Trust andSumitomo Mitsui

Banking

Banking

16.7%

29.0%

Average interest rate (Note 1)

0.92%

July 30,
2018

Long-term borrowing ratio

93.3%

LTV (Note 2)

42.5%

July 29,
2020
July 29,2022(Note 1) The value is the aggregation of “base interest,” “spread” and “rate ofannualized upfront fee” (rounded to the second decimal place).
(Note 2) LTV = “balance of interest-bearing debt” divided by “total assets”(rounded to the first decimal place)

Outstanding borrowings by lender
Resona Bank

Average remaining period to maturity 4.3 years

1,000(Note 1) The borrowing date is July 29, 2015, and borrowings will be repaid by lump repayment on the repayment date. “Series 1” isthe syndicate loan with Shinsei Bank as the arranger.
(Note 2) Long-term borrowings all have non-fixed interest rates; however, to hedge the risk of interest rate increase, interest rate
swaps are conducted. Accordingly, the interest rates shown are all fixed rates through interest rate swaps.

Financial status

Diversification of debt maturitiesborrowing period(m. yen)

7,000

1 year

3 years

5 years

7 years

Balance (m. yen)
4,350

6,000

4,350

5,000

2,500

4,000

1,300

3,000

1,000

2,000

500

1,000

500

6,000
4,500
3,500
1,000

0
2nd fiscal
period(2016/8）500
15,000(Note)

6th fiscal
period（2018/8)

10th fiscal
period（2020/8)

14th fiscal
period(2022/8)

The bars in the chart illustrate the total debt amounts that reach maturity in each period.

19

Unitholders’ special-benefit program(1st fiscal period (2016/2))

JSL established the special-benefit system with the aim of contributing to the health and longevity of unitholders and their families.
The system offers special benefits not only at facilities that this investment corporation owns, but also at the following private nursing
homes managed by the following eight operators.(Note 1)

Specific special benefits

日本全国 total approx. ●●facilities が対象

at approx. 300 facilities
Sompo Care Next Inc.
・Discount on one-time payment for resident (100,000 yen
or 1％ of value; the higher value will be applied)・Same-day facility site-visit (with lunch) free of charge

Seikatsu Kagaku Un-Ei Co.,Ltd
・Same-day facility site-visit (with lunch) free of charge

CENTURY LIFE CORPORATION
・Same-day facility site-visit (with lunch) free of charge

LIXIL SENIOR LIFE
On the condition of advance payment, the following are offered:・Discount on one-time payment for resident (300,000 yen)・Trial residence free of charge (1-night, 2-day stay, with dinnerand breakfast)・Same-day facility site-visit (with lunch) free of charge

Sawayaka Club Corporation

114 facilities
Areas:
Tokyo, Kanagawa, Saitama,
Chiba, Aichi, Osaka, Hyogo,
Hiroshima

22 facilities
Areas:
Tokyo, Kanagawa, Saitama,
Chiba, Shizuoka, Aichi,
Kyoto, Osaka

9 facilities
Areas:
Tokyo, Kanagawa, Saitama
Chiba, Osaka

5 facilities
Areas:
Tokyo, Fukuoka

・10％ discount on usage charge for first month・ Trial residence free of charge (1-night, 2-day stay, withdinner and breakfast)・Same-day facility site-visit (with lunch) free of charge

Hasegawa Care Service Co., Ltd.
・ Trial residence free of charge (1-night, 2-day stay, withdinner and breakfast)・Same-day facility site-visit (with lunch) free of charge

54 facilities
Areas:
usage charge for the first month,
Akita, Tochigi, Saitama
Chiba, Niigata, Aichi, Mie, Osaka
Kyoto, Hyogo, Ehime, Fukuoka

82 facilities
Areas:
Tokyo, Kanagawa, Saitama
Chiba, usage charge for the firstmonth, Nagano, Okinawa

Excellent Care System T Co., Ltd.

12 facilities

・10％ discount on usage charge for first month・ Trial residence free of charge (1-night, 2-day stay, withdinner and breakfast)・Same-day facility site-visit (with lunch) free of charge

Areas:
Tokyo, Kanagawa, Kyoto
Hyogo, Tokushima

NM LIFE Co., Ltd.
・Discount on one-time payment for resident (200,000 yen
discount)
・ Trial residence free of charge, up to three times (1-night,
2-day stay, with dinner and breakfast)・Same-day facility site-visit (with lunch) free of charge (upto three times)

1 facility
Area:
Tokyo

(Note 1) The special benefits will be applied to private nursing homes that are managed by Sompo Care Next Inc., Seikatsu Kagaku Un-Ei Co.,Ltd., CENTURY LIFE CORPORATION, LIXIL Corporation (“LIXILSENIOR LIFE”), Sawayaka Club Corporation, Hasegawa Care Service Co., Ltd, Excellent Care System Co., Ltd., and NMLIFE Corporation.
(Note 2) The special benefits will be applied to facilities available as of the record date (Feb. 29, 2016).

20

Unitholder Information(as of the end of 1st fiscal period (2016/2))


Number of unitholders by investor type
Individuals
and others

1st fiscal
period(ended Feb.
2016)



Financial
institutions

5,092

Financial
Instruments
Business
Operators

30

Other
domestic
companies23

Foreigncompanies
andIndividuals

214

30

Total

Rank

Business Operators

10.2%

1.5%

Foreign companies

Individuals

and Individuals

Ratio
（％）

JAPAN TRUSTEE SERVICES BANK, LTD.

6,980

8.23

2

THE BANK OF
10

4,288

5.05

3

TRUST & CUSTODY SERVICE BANK, LTD.

4,014

4.73

4

ＢＮＰ ＰＡＲＩＢＡＳ ＳＥＣＵＲＩＴＩＥＳ ＳＥＲＶＩＣＥＳ ＬＵＸＥＭＢＯＵＲＧ／ＪＡＳＤＥ
Ｃ／ＨＥＮＤＥＲＳＯＮ ＨＨＦ ＳＩＣＡＶ

3,331

3.93

5

THE MASTER TRUST BANK OF JAPAN, LTD.

2,370

2.79

6

The Nomura Trust Banking Co., Ltd. (Trust Acct.)

2,366

2.79

7

KENEDIX, INC.

1,950

2.30

8

ＭＳＣＯ

1,822

2.14

9

AEON Bank, Ltd.

1,750

2.06

10

BNYML －

1,291

1.52

30,162

35.58

5,389

Financial Instruments

companies

No. of
units
held

Name

1

Ownership ratio by investor type
Other domestic

Major unitholders

NEW YORKMELLON SA/NV

ＣＵＳＴＯＭＥＲ ＳＥＣＵＲＩＴＩＥＳ

and others

16.1%

43.5%
Financial
institutions

28.8%

NON TREATY ACCOUNT

Total(Note) Figures are based on the No. of units and are rounded down to the second decimal place. 21

Appraisal values(as of the end of 1st fiscal period (2016/2))

No.

Property nameAcquisition
priceAppraiser(m. yen)（A）

End of 1st fiscal period (as of Feb.29,2016)

Book value(m. yen)（B）

As of Mar 31, 2015

Appraisal value

Directcapitalization
method cap.
rate

Appraisal Capitalization
Appraisal value Capitalization Appraisal value% changevaluemethod cap. Change
Change(m. yen)method cap. Vs. Book value（C）÷（E）(m. yen)rate（C）-（E）（D）-（F）（C）（D）（C）÷（B）-1
-1
（E）
（F）

S-01

Joy Stage Hachioji

JREI

3,675

3,863

3,780

5.3%

-2.2%

3,710

5.4%

70

1.9%

-0.1%

S-02

Nichii Home Tama Plaza

JREI

2,500

2,583

2,760

5.0%

6.8%

2,660

5.2%

100

3.8%

-0.2%

S-03

Nichii Home Nakano
Minamidai

JREI

1,740

1,779

2,020

4.3%

13.5%

1,900

4.6%

120

6.3%

-0.3%

S-04

Yuimaru Hijirigaoka

Tanizawa

1,175

1,232

1,380

4.8%

12.0%

1,320

5.0%

60

4.5%

-0.2%

S-05

Irise Kamata/Yuseien

JREI

1,100

1,141

1,190

4.6%

4.3%

1,160

4.7%

30

2.6%

-0.1%

S-06

Activa Biwa

JREI

6,940

7,293

7,300

5.5%

0.1%

7,170

5.6%

130

1.8%

-0.1%

Sompo Care
JREI
Lavire Kobe Tarumi (Note 6)

1,900

1,990

2,030

5.1%

2.0%

1,940

5.3%

90

4.6%

-0.2%

1,180

1,296

1,230

4.9%

-5.1%

1,190

5.1%

40

3.4%

-0.2%

S-07
S-08

Granda Mondo Yakujin

Tanizawa

S-09

Excellent Nishinomiya

JREI

750

789

918

5.3%

16.3%

885

5.5%

33

3.7%

-0.2%

S-10

Ten

JREI

2,285

2,484

2,560

6.3%

3.1%

2,490

6.5%

70

2.8%

-0.2%

S-11

Irise Nishioka

800

886

867

5.2%

-2.2%

805

5.6%

62

7.7%

-0.4%

960

1,021

1,010

5.6%

-1.1%

976

5.8%

34

3.5%

-0.2%

1,600

1,735

1,760

5.3%

1.4%

1,680

5.6%

80

4.8%

-0.3%

1,360

1,470

1,440

6.9%

-2.1%

1,420

7.0%

20

1.4%

-0.1%

27,96529,56930,2455.3%

2.3%

29,306

5.5%

939

3.2%

-0.2%

Tanizawa

S-12

Sawayaka Sakura Nibankan JREI

S-13

Alpha Eniwa Sta. Nishiguchi
Tanizawa
Saikaihatsu Building

S-14

Gran Hills Ogawarako
Total

JREI

(注1) The ratios for the acquisition price, appraisal value and book value are rounded to the first decimal place.
(注2) The cap. rate for each property type is a weighted average value based on the appraisal value.

2223