TSE 3460

4th Period Results(Ended August 2017)

Japan Senior Living Partners, Inc. October 16, 2017

Table of Contents
Highlights of the 4th fiscal period (2017/8)
4th fiscal period (2017/8) financial results:
Performance highlight
Earning forecasts of 5th fiscal period (2018/2)
and 6th fiscal period (2018/8)
4th fiscal period(2017/8) financial results:
Performance highlight
Portfolio performance (end-tenants)
Portfolio overview
Initiatives for maintenance and improvementof asset value
Initiatives for maintenance and improvementof asset value (4th fiscal period)
Change in Operators and New Measures
for a Key Property
External growth activities
Financial Highlights(as of the end of 4th fiscal period (2017/8))

2

Status of Lease Agreements

21

3Appraisal values(as of the end of 4th fiscal period (2017/8))

22

4Investment and Operator selection criteria

23

5Back-up Operation Functions

24

7

Classification of senior living facilities by type25

8

Typical earnings structure of senior living facilities

26

9

Characteristics of senior living facilities by type27

10Unitholders’ special-benefit programs(4th fiscal period (2017/8))

28

11

Portfolio asset example ①

29

12

Portfolio asset example ②

30

13

Portfolio asset example ③

31

APPENDIX

14

Surrounding Status of Healthcare Facilities

15

Investment Thesis

16

Growth strategy Aligned with National Policy
and Needs of Society
Investment targets policies and overview ofour portfolio
External Growth Strategy
Stable cash flow through a long-term lease agreement with
fixed rent and high management capabilities

Qualifying for Care System in Japan(How to qualify the Nursing Level )Diverse Support from 6 Companies
with Proven Track Records
Unitholder Information(as of the end of 4th fiscal period (2017/8))

32
33
34

17
18
19
20

1

Highlights of the 4th fiscal period (2017/8)
Highlights of the 4th fiscal period (2017/8)
 Refinanced a short-term loan of ¥1bn (Series 2) under the Implemented measures to maintain and improve asset value

same conditions

by making strategic additional investments and promoted
 Secured revenue stability by smoothly changing the operator

Debt

improvements in leasing terms

 Maintained financial stability with an LTV of 42.5%, longterm fixed ratio of 93.3%, and average remaining borrowing
period of 2.9 yearsof a key asset, ACTIVA BIWA

Assets Debt capacity up to LTV of 50.0% is approx. ¥5bn

Started added-value renovations, etc. with the new operator
 Maintained leasing terms and implemented measures to DPU was ¥3,620 compared to the estimate of ¥3,500;

secure stable revenue based on a positive relationship with
 Maintained a 100% occupancy rate (based on contract) in the
4th fiscal period (Average of actual occupancy rate (based on

Equityoperators

stably paying distributions
 NAV per unit was ¥203,993, up by 1.6% from ¥200,879
in the 3rd fiscal period
 Finalized the outline of the unitholder special benefit plan

end-tenants) from January to June 2017 was 85.4%)

for the 4th fiscal period

Challenges going forward
Expand asset size
Increase unit pricecompared to NAV per unit

through external growth
via the sponsor pipelines
and capital markets

Increase our presence
in a growing health careasset market
24th fiscal period (2017/8) financial results:
Performance highlight
PL statement—overview
3rd fiscal
period（2017/2）
Actual①

4th fiscal
period4th fiscal period
Forecast（2017/8）（announced
Actualon③
2017/4/13）
②

(A)
(B)
3rd (Actual)
4th(Actual)vsvs
4th (Actual) 4th(Forecast)Comparison Comparison
ChangeChange③-①③-②

Operating revenue

988

988

989

1

0

Operating expense

614

619

614

0

△4

Operating income

374

369

374

0

5

0

0

5

5

5

71

71

72

0

0

Ordinary income

303

297

307

4

10

Net income

301

296

306

5

10

DPU (yen)

3,561

3,500

3,620

59

120

Non-operating
incomeNon-operating
expense(Reference)
3rd fiscal period(2017/2)
Total No. of issued
investment units

4th fiscal period（2017/8）

84,75084,750

Leasing NOI (Note 1) (m.yen)

839

843

FFO (Note 2) (m.yen)

606

612

200,879

203,993

NAV per unit (Note 3) (yen)(A)
Major factors of difference(from the previous fiscal period) Increase in Non-operating
income （+5）
・Compensation income ＋5(B)
Major factors of differences(against Forecast) Decrease in Operating
expense (△4)
・ Repair and related
Investigation expense ＋４
・ Other operating expense △８
 Increase in Non-operating
income（＋5）
・ Compensation income ＋5(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” - “period-end book value”）｝/Total No. of issued investment units3

Earning forecasts of 5th fiscal period (2018/2)
and 6th fiscal period (2018/8)
Earning forecasts of 5th fiscal period(2018/2) and 6th fiscal period (2018/8)
4th fiscal
period（2017/8）
Actual①(A)
5th
5th fiscal(Forecast)periodvs（2018/2）
4th (Actual)
Forecast
Comparison②
Change②-①

DPU: Historical performanceand forecast(m. yen)(B)
6th(Forecast)vs
5th(Forecast)Comparison
Change③-②

6th fiscal
period(2018/8)
Forecast③

Operating revenue

989

987

△1

992

4

Operating expense

614

618

3

622

3

Operating income

374

369

△5

369

0

（yen）
4,000

3,573 3,561
3,500

55

163

3,000

3,620
154

3,500 3,500
142

130

Distribution fromsilentpartnership(TK)

2,509
2,500

2,000

3,518

3,398

3,466

3rd fiscal
period(2017/2)
Actual4th fiscal
period(2017/8)
Actual

3,358

3,370

5th fiscal
period(2018/2)
Forcast6th fiscal
period(2018/8)
Forcast

1,500

2,509
1,000

Non-operating income

5

0

△5

0

-

Non-operating
expense

72

71

△0

72

0

500

Ordinary income

307

297

△ 10

297

△0

0

Net income

306

296

△ 10

296

△0

DPU (yen)

3,620

3,500

△ 120

3,500

-

(A)
Major factors of difference
5th fiscal period (Forecast)against 4th fiscal period(Actual) Comparison

 Increase in Operating expense（＋3）
・ Repair and related Investigation
expense ＋３
・ Depreciation ＋１
・ Management fee △２(Ｂ)
Major factors of difference
6th fiscal period(Forecast) against 5th
fiscal period (Forecast)Comparison

1st fiscal
period(2016/2)
Actual

2nd fiscal
period(2016/8)
Actual Increase in Operating revenue（＋４）
・Rental fee＋４
 Increase in Operating expense（＋3）
・ Depreciation ＋１, Management fee +1

44th fiscal period(2017/8) financial results:
Performance highlight
Balance sheet—overview
Item(m. yen)

3rd fiscal
period(2017/2)
Actual4th fiscal
period(2017/8)
ActualMajor factors of difference(from the previous fiscal
period)ChangeCurrent assets

6,099

6,224

125

34

39

5

28,00527,725

△ 279

1,039

1,039

-

312

303

△9

35,49135,333

△ 158

1,000

1,000

-

-

3,500

3,500

341

346

5

Long-term borrowings
Leasehold and security
deposits received
Trust tenants lump sum
deposits
Total liabilities

14,00010,500△ 3,500

840

840

-

3,476

3,307

△ 169

19,65819,494△ 163

Total net assets

15,833

15,838

5

Total liabilities and net assets

35,49135,333△ 158

Cash and deposits
Other
Noncurrent assets
Property, plant andequipment
Intangible assets
Investment, otherassetsTotal assets

 Decrease in PP&E （△279）
・ Capex ＋25
・ Depreciation △305

Current liabilities
Short-term borrowings
Current portion of long-termborrowings
Other
Noncurrent liabilities

5

memo

Portfolio performance (end-tenants)
 Has continued to offer proposals on repair & renovation, and proposals and consultation on operation & sales
methods based on monitoring; and has maintained stable occupancy rate & portfolio revenue
Average of actual
occupancy rate
(Based on end-tenants) (Note 3)

85.4％（-0.5％）

Moving-in rate

Moving-out rate

(Note 4)(Note 4)

13.4％（-4.7％）

16.4％（-2.4％）

Average nursing
level (Note 5)
1.7 （-）

Average age(Note 5)85.7yrs old（+0.3yrs)* Figures in parentheses in “Average of actual occupancy rate,” “Moving-in rate,” and “Moving-out rate” represent the difference in the respective data Jul. to Dec. 2016 and Jan to Jun 2017. “Average nursing level” and “Average age”
represent the difference between as of the end of Dec. 2016 and as of the end of Jan. 2017.

Moving-in and Moving-out trend(Jan.-Jun.2017）

Actual occupancy rate and Revenue trend(Jan.-Jun.2017）（million yen）

600

(Residents)

85.3%

85.3%

85.4%

85.6%

85.6%

85.4%

90%

30

80%

20

500
70%

400

10

17

18

-20

-23

25

23

16

60%

17

0
50%

300
490

504

476

481

499

478

200

40%
30%

-20

20%

-30

10%

-40

100
0

0%
2017/012017/022017/03

Revenue

2017/04

2017/05

Actual Occupancy rate

-10

-21

-23

-22

-33

2017/012017/022017/03Net
decrease26

2017/04

2017/05

2017/06

2017/06# of Moving-in# of Moving-out# of Moving-in －# of Moving-out(Note 1) “Actual occupancy rate (Based on end-tenants), (However,100.0% occupancy rate (Based on contract)) “Revenue,” “Moving-in,” and “Moving-out” are based on data from materials submitted by the operators.
However, the data of “Granda Mondo Yakujin” wes not disclosed because the operator did not authorize such disclosure, and accordingly was 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 (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 Jan. to Jun. 2017 is presented.
(Note 4) Total “Moving-in” and total “Moving-out” were divided by the total capacity (during the six months from Jan. to Jun. 2017), and then annualized for presentation.
(Note 5) “Average nursing level” and “Average age” are as of the end of Jun. 2017 based on data from materials submitted by the operators.

7

Portfolio overview
Acquisition
price(m. yen)

Propertyno.

Facilitytype

S-1

With nursing

Joy Stage Hachioji

Hachioji, Tokyo

3,675

232

S-2

With nursing

Nichii Home Tama Plaza

Kawasaki,Kanagawa

2,500

S-3

With nursing

Nichii Home Nakano Minamidai

Nakano Ward,
Tokyo

S-4

Residence
type

Yuimaru Hijirigaoka

S-5

With nursing

S-6

Property nameLocation

No. of rooms

ActualOccupancyrate(Based on

As of:

Operator

89.2%

2017/7/1

NM LIFE Co., Ltd.

160

75.0%

2017/7/1

Nichii Carepalace Company

1,740

83

67.5%

2017/7/1

Nichii Carepalace Company

Tama, Tokyo

1,175

70

100.0%(Note2)

2017/7/1

Community.Net Co., Ltd.

Irise Kamata/Yuseien

Ota Ward, Tokyo

1,100

48

95.8%

2017/7/1

Hasegawa Care Service Co., Ltd.

With nursing

Activa Biwa

Otsu, Shiga

6,940

384

76.8%

2017/3/1

Activa Co., Ltd. (Note 4)

S-7

With nursing

Sompo Care
Lavire Kobe Tarumi

Kobe, Hyogo

1,900

100

87.0%

2017/7/1

Sompo Care Next Inc

S-8

Residence
type

Granda Mondo Yakujin

Nishinomiya,
Hyogo

1,180

62

100.0%

2016/7/1

Benesse Style Care Co., Ltd.

S-9

With nursing

Excellent Nishinomiya

Nishinomiya,
Hyogo

750

67

100.0%(Note2)

2017/7/1

Excellent Care System T Co., Ltd.

S-10

With nursing

Ten

Sapporo, Hokkaido

2,285

85

87.1%

2017/9/1

Social Welfare Corp. Note Fukushi Kai

S-11

Residencetype

Irise Nishioka

Sapporo, Hokkaido

800

83

81.9%

2017/7/1

Hasegawa Care Service Co., Ltd.

S-12

With nursing

Sawayaka Sakura Nibankan

Akita, Akita

960

92

100.0%

2017/7/1

Sawayaka Club Co., Ltd.

S-13

Residence
type

Alpha Eniwa Sta. Nishiguchi
Saikaihatsu Building

Eniwa, Hokkaido

1,600

73

76.7%

2017/7/1

Hasegawa Care Service Co., Ltd.

S-14

Elderly homewith service

Gran Hills Ogawarako

Kamikita District,
Aomori

1,360

103

100.0%(Note2)

2017/7/1

Silver Town Ltd.

27,965

1,642

85.4％(Note3)

end-tenants)(Note 1)

Total/Average(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.
(However,100.0% occupancy rate (Based on contract)). 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: 101.4 %), Excellent Nishinomiya” (Actual occupancy rate: 104.5％), and “Gran Hills Ogawarako”(101.9％) exceed 100%, the nominal rates are presented here respectively as 100%
(Note 3) The average of actual occupancy rate (Based on end-tenants) for “Yuimaru Hijirigaoka,” , “Irise Kamata/Yuseien”,“Excellent Nishinomiya” ,” and “Gran Hills Ogawarako,” was calculated the actual occupancy rates
respectively, as 100.0％.
8(Note 4) Activa Biwa was succeeded to the status of operator from UNIMAT Retirement Community Co., Ltd. to Activa Co., Ltd. (100% subsidiary of Resorttrust Inc.) on April 1, 2017.

Initiatives for maintenance and improvementof asset value
JSL Operation Cycle

Monitoring

Rental-rates will bemaintained/improved

Improvement
proposal

 Will utilize regular site-visits,management reports,
comprehend the status, andevaluate the situations
 Will conduct management
interviews, etc.

Strategic additional
investment

Appropriate
maintenance（Efficient utilization of Capex ）ORE strategy
opportunities

Measures to maintain and increase the rent level
Property

Nichii Home Tama Plaza

Measures

Repair work for B1F and 2F・Lounge, dining room,
corridors/entrance, etc.

EffectExtension of contract period

Building age and average leasing period of properties
Change in average leasing period(years)Less than
5years12.8%

25

Rent increased
5-10 years
25.3%

ACTIVA BIWA

・Change in operators
・Added-value renovations, etc.

Joy Stage Hachioji・Install more toilets and sinks
・Installation of double sash
・Change in lighting design andswitch to LED bulbs

30

Rent maintained

20 years
Averagebuilding age or more
53.1%
17.5 years

Extension of contract period
Rent increased

20

24.7

23.8

23.6
Added-value
renovations for
Joy Stage
Hachioji

Added-value
renovations for
Nichii Home
Tama Plaza

15

10
10-15 years
8.8%

第２期
2nd fiscal
period(2016/8)（16/8期）

3th第３期
fiscal period(2017/2)（17/2期）

工事完了後
After
renovations
are complete（見込み）(estimate)(Note) The leasing period starts after completion of added-value renovations for Nichii Home Tama Plaza

9

Initiatives for maintenance and improvementof asset value (4th fiscal period) Began implementing added-value renovations to increase property competitiveness Agreed to extend the contract period and raise rent through negotiations with theoperator
Nichii Home Tama Plaza

Address

Kawasaki, Kanagawa

Construction

RC,B2/F4

Completion

March 1992

No. ofrooms(capacity)

160（164）

Unit size

14. 17㎡～28. 61㎡

ActualOccupancyrate(Based on
end-tenants)

75.0％(As of July 31, 2017）

Contract
periodCurrent

New

Until July 31, 2022

Until July 31, 2032

After

(Note) The non-cancellable period is until July 31, 2027

 Subdivide the entrance hall andtransform it into a lounge andfamily room
 Provide new services for
operational efficiency*ImageExtension of theaverage leasing period(entire portfolio)

Current:
23.8 years
Extension of thecontract period for Nichii
Home Tama Plaza

After renovations
are complete(estimate)
Dining room

Entrance
Dining room

10 years

Rent increased (rent revisions areprohibited during the non-cancellable
period(Note))

Rent

Planning in consideration of operational efficiency and resident comfort

BeforeExtended for

Family room

Lounge24.7 yrs
10Change in Operators and New Measures
for a Key Property
 JSL discussed business succession with the old and new operator based on the ORE
strategy and negotiated terms beneficial for both operators
 Began implementing added-value renovations, etc. jointly with the operator
Overview of change in Operators（as of April 1, 2017）

 Activa Biwa

(Acquisition price: 6,940m yen*)

Overview of new measures
Measures taken by the operator

Name*24.8% of our portfolio on an acquisition
price basis

Location
No. of rooms(capacity)

Otsu, Shiga
384（445）

 Change in actual occupancy rate

Resorttrust, Inc. (listed on theFirst Section of the Tokyo andNagoya Stock Exchanges)

New operator

Business
description

Membership business,
hotel/restaurant business,
medical business(newly-establishedcorporation)Dateestablished

April 1973

 Acquired 100%of the stocks

No. of facilities

14 facilities

Activa Co., Ltd.

membership-based resort business and medical
business
・ Added-value renovations for shared and outdoor
facilities
・Provide meals similar to those at a hotel

Collaboration(Note)

No. of rooms

1,459 rooms(Note)

Measures taken by JSL

Conditions for changing operators

100.0%
95.0%

Utilize managerial resources cultivated through

1. Maintain leasing conditions

・Develop a long-term improvement plan based on
the operator’s requests
・Perform appropriate property maintenance

90.0%
85.0%
80.0%

2. Cooperate with the parent company (Resorttrust) in
joint and several guarantee and disclosure

75.0%
70.0%

3. Prohibit rent reductions upon the next rent revision(August 2018)

Aim to stabilize revenue in themedium- to long-term based on thepartnership with the operator
11External growth activities
Invested assets related to equity interest in silent partnership (KSLF8) （Note1）

Anesis Hyogo

Canadian Hill

Rococo-riha

Orage Suma

Anesis Teradacho

第3期 (17/2期)時点でのパイプライン件数(注4)Property nameCanadian Hill

Anesis Hyogo

Orage Suma

Rococo-riha

AnesisTeradacho

Location

Kobe, Hyogo

Kobe, Hyogo

Kobe, Hyogo

Toyonaka,
Osaka

Osaka, Osaka

Apr, 2011

Oct, 2010

Completion
Date
Appraisal value（Million yen）

Jan, 2002

Sep, 2005

Sep, 2010

8.8yrsTotal of appraisal
values12,260

m.yen

1,930

1,480

2,940

2,190

3,720

(Note2)140
No. of capacity

Averagebuilding age (Note3)

115

100

（Elderly housing withsupportive services ：
40）

250
100

（Fee-based homes
for the elderly withnursing care：100）

Minimum purchaseprice provided by thepreferential
negotiation rights

11,650m.yen（Note 1) The operator of the managed assets is KouyuKai Healthcare Corporation.JSL has preferential negotiation rights for asset purchase by notifying at
the price more than 11,650m. yen by March 29, 2019.
（Note 2) “Appraisal value” is described as of Feb.28, 2017.
（Note 3) Average building age is calculated by weighted-average of each property’s building age by each appraisal value.（rounded to the first decimal
place）

12

Financial Highlights(as of the end of 4th fiscal period (2017/8))
Overview of interest-bearing debt (Note 1)

Classification

LenderBalance(million yen)

Series 3-①(Short-Term)

Shinsei Bank, Limited;

500

Series 3-②(Short-Term)

Sumitomo Mitsui Banking Corporation

500

Short-term borrowings total

1,000

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.

Financial status



3,500
6,000
4,500

Long-term borrowings total

14,000Borrowings total

15,000Interest rate
(Note 2)

Borrowing
Date

Repayment
date

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

2017/7/31

2018/7/30

2015/7/29

2018/7/30

2015/7/29

2020/7/29

2015/7/29

2022/7/29

0.4352%
per annum interest
rate
0.7287%
per annum interest
rate
1.1145%per annum interest
rate

Average remaining period to maturity 2.9yrs

Average interest rate (Note 1)

0.92%

Long-term borrowing ratio

93.3%

LTV (Note 2)

42.5%(Note 1) The value is the aggregation of “base interest,” “spread”
and “rate of annualized 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)(Note 1) The repayment method for the debt financing are lump-sum repayment and the conditions are unsecured and unguaranteed.
“Series 1 (Series 1-B, Series 1-C, Series 1-D)” is the 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.,

Outstanding borrowings by lender

Resona Bank
3.3%

Mizuho Trust &Banking
3.3%

Sompo Japan Nipponkoa
Insurance
6.7%

Nippon Life
Insurance
3.3%

Shinsei Bank
29.0%

Mizuho Bank
8.7%

Mitsubishi UFJ Trust andBanking
16.7%

Sumitomo Mitsui
Banking
29.0%

Lenders

Balance (m. yen)

Shinsei Bank, Limited

4,350

Sumitomo Mitsui Banking
Corporation

4,350

Mitsubishi UFJ Trust andBanking Corporation

2,500

Mizuho Bank, Ltd

1,300

Sompo Japan Nipponkoa
Insurance Inc.

1,000

Resona Bank

500

Mizuho Trust & Banking Co.,
Ltd

500

Nippon Life Insurance
Company

500

Total

15,000

Diversification of debt maturities(m. yen)
7,000
6,000
5,000
4,000

1,000
6,000

3,000

2,000

4,500

3,500

1,000
0

(Note)

6th fiscal period

10th fiscal period

14th fiscal period(2018/8)(2020/8)(2022/8)

Each bar in the chart illustrates the total debt amounts that reach maturity in each period.

13

APPENDIX

Surrounding Status of Healthcare Facilities
 The proportion of the aged 65 or over to the total population in Japan is expected to rise from
23.0% in 2010 to 28.9% in 2020 and 38.4% in 2065.
＜ Population trend over 65＜ Domestic population trend by age ＞(Source) National Institute of Population and Social Security Research「Population Projections for Japan 2017」＜ Notification trend of fee-based homes for the elderly ＞

in the three major metropolitan areas ＞（Source) National Institute of Population and Social Security Research「 Population Projections by area for Japan（March 2013)」＜Registration trend of serviced housing for the elderly ＞（Source) Residence for elderly people with service system（June,2017)(Source)Ministry of Health, Labour and Welfare （As of July 1)

15

Investment Thesis「Based on our investment thesis of contributing to society as a bridge between the capital markets and thehealthcare industry, supporting healthcare industry growth in various ways and seeking to maximize thesatisfaction of the residents/users, operators and unitholders who are all our stakeholders.」

Needs of Capital Markets’ Investors
 Diverse investment opportunities

 Investment seeking long-term stability

 Yield commensurate to risk

 Investments in growth sectors

 Investment with greater contribution to society

Needs of Operators
 Expansion and optimization of business Diversification of fund procurement Specialization in operation based on

methods
 Streamlining the balance sheet

separation of ownership and operation

Needs of Users
 Safety and security

 Meaningful active lives

 Healthy living

 Appropriate fees

 Reliablecare

medical treatment and  Convenience and independence Avoiding real estate ownership risks

Needs of Government Policies and Society
 Promotionof private initiatives todevelop social infrastructure Limited social security costs
 Comprehensive local care Regional revitalization

 Compact cities Housing complex generation

16

Growth strategy Aligned with National Policy
and Needs of Society External growth strategy with consideration of the contributions to the industry society Exploring opportunities of the new asset class of medical facilities (hospitals) as a J-REIT
Growth strategy aligned with national policy
and the needs of society
Activa Biwa

Yuimaru
Hijirigaoka

Housing
Complex
regeneration

Japaneseversion of
CCRC

Japaneseversion of
CCRC

Local / intergenerational
exchange

Alpha Eniwa
Sta.
Nishiguchi
Saikaihatsu
Building

Ten

Earthquake resistance of hospital

No of Hospitals
with earthquake
resistanceover the wholebuilding
5,687; 67.0%

Regional
revitalization

Compact
city

Japaneseversion of
CCRC

No of Hospitalwith no available
data onearthquake
resistanceover the building
1,955; 23.0%

Joy Stage
HachiojiJapaneseversion of
CCRC

Local / intergenerational
exchange(Note) For each of the above-mentioned facilities, JSL determined the corresponding social needs.

Earthquake
resistanceof hospitals

No of Hospitals withearthquake
resistance over somepart of building
729; 8.6%
No of Hospitals
with no earthquake
resistance over
the whole building
122; 1.4%(Source) Ministry of Health, Labor and Welfare’s “Survey on the statusof renovation of Earthquake-Resistant hospital structure(held in Mar. 31, 2015)(Note) The ratio of earthquake resistance of hospitals is calculated by
dividing the number of hospitals with earthquake resistance by
the number of hospital that responded to the survey.

17

Investment targets policies and overview ofour 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.

2.7%

Serviced housing for the elderly

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

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

78.1%

Activa Co., Ltd.

24.8%

4.2%

Core cities
14.5%

Benesse Style Care Co., Ltd.

Three major
metropolitan
area and corecities
89.4％

4.2%

17.0%

Silver Town Ltd.

Breakdown byfacility type4.9%
Sompo Care next Inc.

6.8%

Breakdownby operator

Social Welfare Corp.
Note Fukushi Kai

Nichii Care Palace
Company

8.2%

15.2%
Hasegawa Care Service
Co., Ltd.

NM LIFE Co., Ltd.

12.5%

13.1%

Osaka
Metropolitan
area
38.5%

Other
10.6%

地域別比
率
Breakdown
by areaTokyo
Metropolitan
area
36.4%

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%

Three major
metropolitan
areas
75.0%

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

36.0%

24.8%

Long-term
Care
Required- 4
11.6%

Long-term
Care
Required- 5
7.6%

Long-term Care
Required- 3
10.5%

Breakdown
by scale

Average
Supportnursing level Required-1
11.0%
1.7

Long-term
Care
Required- 2
12.8%

2 billion yen to less than
3 billion yen 2 properties

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

self-reliant
20.4%

SupportRequired-2
5.4%
Long-term
Care
Required- 1
20.8%(Note 1) The three major metropolitan areas are the Kanto area, the Osaka metropolitan area and the Nagoya metropolitan area.
4,785 million yen
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/Long-term Care 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
the disclosure statement”; B=”0” for self-reliant, ”0.375” for Support Required-1, “1” for Support Required-1, or ”1-5” respectively for Long-term Care Required-1 to Long-term Care Required-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 page 8. For more information of “Nursing level”(Care System in Japan), refer to page 32.

18

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

Sponsors’ 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/JSLP 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 for improvement

Sale-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

19Stable cash flow through a long-term lease agreement with
fixed rent and high management capabilities
 Long-term lease agreement with fixed rent
 Discerning operator selection
Stable cash flow through a long-term lease agreement with fixed rent
Average leasing period

23.8年
20年以上

100.0%

Fixed-rent ratio

16.2 yrs

100.0%

Less than 5 years:
1 property
5 years toless than
10 years:
1 property

Lease
agreement
periodAverage remaining
period of lease

6.2%

10 years toless than
15 years:
3 properties

8.9%

Lease
agreement
periodremaining

36.5%

20 years or more:
5 properties

24.9%

15 years toless than 20
years:
4 properties

100.0%

Fixed-rent
ratio

23.5%

The Highly Specialized, Abundantly Experienced Members of
Our Asset Manager(JSLP)
Asset Manager’s
operational ability
enhancedHigh degree ofexpertise
Wealth ofexperience
Human networks

Stablecash flow
achieved

Operator

Established

Revenue(millionyen)(Note 1)

(Note 1) The data is as of the end of the 4th fiscal period (ended Aug. 2017).
The ratios are based on acquisition prices.
(Note 2) If an acquisition asset involves multiple tenants, the data is based on the leasing agreementwith the operator, who is the major tenant.

Officers and personnel
dispatched fromsponsors

Selection of operator with management track record
Facilities
operated

No. of rooms(capacity)(Note 2)

(Note 2)14(Note 2)

1,762
1,459

100% subsidiary ofResorttrust Inc. which is listed
on TSE

78

5,099
4,956

Subsidiary of Nichii Gakkan
Company, which is listed on
TSE

Listed/unlisted

Activa Co., Ltd.

June 2,
1975

Nichii Carepalace
Company

June 22,1964

NM LIFE Co., Ltd.

October 5,
1995

882

1

263
232

100% subsidiary of IriscareInc., which is unlisted

Hasegawa Care
Service Co., Ltd.

November1,
2006

19,139

126

6,108
6,085

UnlistedSocial Welfare Corp.
Note Fukushi Kai

June 13,
1983

6,452

43

1,681
1,023

Unlisted

Sompo Care Next
Inc.

November
11,
1992

37,472

117

8,910
8,826

Subsidiary of Sompo Japan
Nipponkoa Holdings, Inc.,
which is listed on on TSE

Benesse Style Care
Co., Ltd.

September
7,
1995

100,897

312

17,525
16,789Consolidated subsidiary ofBenesse Holdings,Inc. which islisted on on TSE

Community Net Co.,Ltd.

June 24,
1998

1,479

10

990
515

Unlisted

Sawayaka Club Co.,Ltd.

December1,
2004

15,134

71

4,263
4,236

Consolidated subsidiary of
UCHIYAMA HOLDINGS Co.,
Ltd., which is listed on TSE

Excellent Care
System T Co., Ltd.

August 2,
2004

3,827

39

1,466
1,334

Unlisted

Silver Town Ltd.

February
25,
2003

153

3

188
178

Unlisted－(Note3)－(Note4)(Note1) The figures for “sales” are based on the information obtained by JSL as of Mar.31, 2017. However, NM LIFE Co., Ltd.
is as of Dec. 31,2016, Hasegawa Care Service Co., Ltd. is as of Sep.30, 2016, Excellent Care System T Co.,
Ltd. is as of Jul.31,2017 and Silver Town Ltd. is as of Aug. 31, 2016.
(Note2) The figures for “facilities operated” and “no. of room (capacity)” are as of Jun.30, 2017. However, Benesse Style Care
Co., Ltd. is as of Jul.31, 2017. and Activa Co., Ltd. is included the figure for facilities operated by Resorttrust Inc.
(Note3) The figure for “Revenue” is “-”, Since Activa Co., Ltd. started its business from Feb.28,2017.
(Note4) The sales figure for Nichii Carepalace Company is not disclosed because the company did not authorize such disclosure.

20

Status of Lease Agreements
Remaining Revisioncontract
periodperiodof rent(yrs)
conditions

Rent
revisionofRent revision Datecorrespondto fiscal
periodCancellationprohibition period

Contract expiry

July 31, 2014

January 31, 2026

January 31, 2036

18.4

No principle（Note3)--

Nichii Carepalace Company

August 1, 2002

July 31, 2022

July 31, 2022

4.9

3yrs

August 1, 2018

6th fiscal
periodNichii Home Nakano Minamidai

Nichii Carepalace Company

April 1, 2007

March 31, 2027

March 31, 2027

9.6

3yrs

April 1, 20198th fiscal
periodResidence
type

Yuimaru Hijirigaoka

Community.Net Co., Ltd.

December 16, 2064

47.3

No principle（Note4)

-

-

S-05

With
nursing

Irise Kamata/Yuseien

Hasegawa Care Service Co., Ltd.

-

June 30, 2042

24.8

5yrs

July 1, 2017
(Note8)

4th fiscal
periodS-06

Withnursing

Activa Biwa

Activa Co., Ltd.

August 31, 2017

August 30, 2027

10.0

3yrs

August 31, 2018
(Note9)6th fiscal
periodS-07

Withnursing

Sompo Care
Lavire Kobe Tarumi (Note 4)

Sompo Care Next Inc

May 13, 2010

May 31, 2028

May 31, 2030

12.8

No principle（Note5)

-

-

S-08

Residence
type

Granda Mondo Yakujin

Benesse Style Care Co., Ltd.

July 31, 2014

July 30, 2037

July 30, 2037

19.9

No principle（Note5)

-

-

S-09

With
nursing

Excellent Nishinomiya

Excellent Care System T Co.,
Ltd.

October 8, 2014

October 7, 2022

October 7, 2034

17.1

No principle（Note4)

-

-

S-10

With
nursing

Ten

Social Welfare Corp. Note
Fukushi Kai

September 15, 2007

February 26, 2023

February 26, 2038

20.5

No principle（Note4)

-

-

S-11

Residencetype

Irise Nishioka

Hasegawa Care Service Co., Ltd.

June 1, 2014

March 31, 2027

May 31, 2044

26.8

No principle（Note3)

-

-

S-12

With
nursing

Sawayaka Sakura Nibankan

Sawayaka Club Co., Ltd.

March 27, 2013

March 27, 2023

March 27, 2033

15.6

No principle（Note3)

-

-

S-13

Residence
type

Alpha Eniwa Sta. Nishiguchi
Saikaihatsu Building(Note6)

Hasegawa Care Service Co., Ltd.

March 15, 2015

March 31, 2023

March 31, 2045

27.6

No principle（Note3)--

Gran Hills Ogawarako

Silver Town Ltd.

April 27, 2007

May 31, 2024

October 31, 2029

12.2

3yrs
（Note7）

November 12, 2017

5th fiscal
periodNo.

Type

Property nameOperator

S-01

With
nursing

Joy Stage Hachioji

NM LIFE Co., Ltd.

S-02

With
nursingNichii Home Tama Plaza

S-03

With
nursing

S-04

S-14

Elderlyhome withservice

Contract start

December 17, 2014 December 16, 2022
July 1, 2012
August 31, 2007

（Note１）If an acquisition asset involves multiple tenants, the data is based on the leasing agreement with the operator, who is the major tenant.
（Note２）The conditions of contract are all lease contract except “Gran Hills Ogawarako”, which is fixed-term leasehold contract.
（Note３）The lease agreements cannot be revised in principle during the leasing period; however, It enables consultation every two years for the rent increase due to inflation or interest rates rise.
（Note４）The lease agreements cannot be revised in principle during the leasing period; however, If it is deemed extremely unjust by the fluctuations of the economic conditions will enable consultation every three years,
if the consultation is not settled, tenant will assume the payment obligations of the current rent.
（Note５）The lease agreements cannot be revised in principle during the leasing period; however, If it is deemed extremely unjust by the fluctuations of the economic situation etc., it will be possible revision in consultation.
（Note６）The Lease Agreements of “Irise Eniwa,” which is located on the 4th–6th floors of Alpha Eniwa Sta. Nishiguchi Saikaihatsu Building, is described.
（Note７）Unless the property no defect or be usable, It is not possible to request of rent fee reduction.
（Note８）Renewed with previous contract contents. The next rent revision date is July,1 2022.
（Note 9) In the memorandum on the change in lease agreement dated April 1, 2017, we agreed Activa Co., Ltd.that the rent will not be decreased on August 31, 2018, and will be the same as or higher than the current rent.

21

Appraisal values(as of the end of 4th fiscal period (2017/8))
End of 4th fiscal period (as of Aug.31,2017)

No.

Property nameAppraiser

Acquisition
price(m. yen) Book value（A）(m. yen)（B）

Appraisalvalue(m. yen)（C）

Capitalization Appraisal value
method cap. Vs. Book value（D）（C）÷（B）-1

End of 3rd fiscal
period (as of
Feb.31,2017)
Appraisalvalue(m. yen)（E）

Appraisal value

Directcapitalization
method cap.
rate

Capitalization% change
Changemethod cap. Change（C）÷（E）
rate（C）-（E）（D）-（F）
-1
（F）

S-01

Joy Stage Hachioji

JREI

3,675

3,834

3,890

5.2%

1.5%

3,900

5.2%

-10

-0.3%

0.0%

S-02

Nichii Home Tama Plaza

JREI

2,500

2,499

2,810

4.9%

12.4%

2,810

4.9%

0

0.0%

0.0%

S-03

Nichii Home Nakano
Minamidai

JREI

1,740

1,764

2,020

4.2%

14.5%

2,020

4.2%

0

0.0%

0.0%

S-04

Yuimaru Hijirigaoka

Tanizawa

1,175

1,203

1,330

4.6%

10.6%

1,330

4.6%

0

0.0%

0.0%

S-05

Irise Kamata/Yuseien

JREI

1,100

1,104

1,190

4.5%

7.8%

1,190

4.5%

0

0.0%

0.0%

S-06

Activa Biwa

JREI

6,940

7,056

7,310

5.4%

3.6%

7,310

5.4%

0

0.0%

0.0%

S-07

Sompo Care
Lavire Kobe Tarumi

JREI

1,900

1,937

2,060

5.0%

6.4%

2,060

5.0%

0

0.0%

0.0%

S-08

Granda Mondo Yakujin

Tanizawa

1,180

1,261

1,240

4.7%

-1.7%

1,240

4.7%

0

0.0%

0.0%

S-09

Excellent Nishinomiya

JREI

750

754

932

5.2%

23.6%

931

5.2%

1

0.1%

0.0%

S-10

Ten

JREI

2,285

2,405

2,600

6.2%

8.1%

2,600

6.2%

0

0.0%

0.0%

S-11

Irise Nishioka

Tanizawa

800

857

890

5.0%

3.9%

887

5.0%

3

0.3%

0.0%

S-12

Sawayaka Sakura Nibankan

JREI

960

985

1,030

5.5%

4.6%

1,030

5.5%

0

0.0%

0.0%

S-13

Alpha Eniwa Sta. Nishiguchi
Saikaihatsu Building

Tanizawa

1,600

1,684

1,790

5.1%

6.3%

1,800

5.1%

-10

-0.6%

0.0%

S-14

Gran Hills Ogawarako

JREI

1,360

1,414

1,430

6.9%

1.1%

1,430

6.9%

0

0.0%

0.0%

27,96528,76530,522

5.2%

6.1%

30,538

5.2%

-16

-0.1%

0.0%

Total

(Note1) The ratios for the acquisition price, appraisal value and book value are rounded to the first decimal place.
(Note2) The cap. rate for each property type is a weighted average value based on the appraisal value.

22

Investment and Operator selection criteria
Investment criteria for individual
property(at acquisition)

Operator selection criteria
Management vision

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

Operator

History of establishment
 Management philosophy
 Backbone of management
and characterTrack record & type ofbusiness portfolioFinancial credibility

 Balance sheet, Profit and loss
Scale of operation
situation, Cash flow, Banking
Past accidents, scandals, if any
 Status of other businesses
and affiliates

Operators landscape in Japan

Operators that operate facilities with 500
rooms or more comprise 1.2% of the total.

・Management vision
・Track record & type of businessportfolio・Financial credibility

Operators that operate facilities with
500 rooms or more account for
34.2% of total rooms.

500 rooms or more
108 companies
1.2%
500 rooms or more

Operation
・Business revenue (rent-paying
capacity)・Service quality
・Market environment

1–499 rooms

1–499 rooms

8,856

392,724companies

rooms

98.8%

65.8%

※Based on the No. of companies (Japan)

204,574 rooms
34.2%※Based on the No. of rooms (Japan)(Source）Compiled by JSLP based on data obtained from KPMG Healthcare Japan Inc.
(Note) The data refers to the number of companies and rooms of operators of fee-based homes for the elderly and serviced housing for the elderly as of Oct.2015.

23

Back-up Operation Functions
 Stable management through the high specialization and abundant experience of JSLP Preserving the continued stability of our residents through back-up operation functions
Our Operators※ Trustgarden is a 100% subsidiary of Resorttrust Inc.

Sub-lease agreements

Sponsor support agreements

Back-up operation arrangements

SponsorsSome
operatorsof oursponsors’
subsidiaries

Some operatorsof our facilities(Nine firms)
24

Classification of senior living facilities by type
For persons living on their own（self-reliant）

For persons requiring nursing care

Mid-price range

High price range

Mid-price range

High price range

Market demand

Potential 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

Unit size

25～50㎡

50～100㎡

15～25㎡

18～25㎡

Roomamenities

Sharedamenities

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 market demand, monthly housing charge, unit size, room amenities and shared amenities assumed by JSLP
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).”25

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

Private pay

Residents/
Users

Operators of senior living facilities
Real estateservice
Fee

Public pay
Nursing careinsurancesystemNursing
service

Hospitality
service

Medical service
Fixed rent

Insurance
fee

HealthinsurancesystemJSL
Distributions
Unitholders(Note) This is a schematic chart designed by JSL to show the typical earnings structure of senior living facilities.

26

Characteristics of senior living facilities by type
Average Required level of nursing for Senior living facilities and distribution of monthly paid fee
4th fiscal period (2017/8)

High 600,000

High price range for thoserequiring nursing care

500,000

Monthly charged fee

New demand

Volume zone

Activa Biwa

Joy Stage
Hachioji(Nursing)(Nursing)

400,000
Joy Stage
Hachioji

ActivaBiwa

300,000

GrandaMondo
Yakujin（self-reliant）（self-reliant）

Ten

Yuimaru
Hijirigaoka（self-reliant）

Yuimaru
Hijirigaoka（self-reliant）

200,000(Nursing)

Mid-price range
for those（self-reliant)

Excellent
Nishinomiya
Irise Eniwa(Alpha Eniwa Sta.

Nishiguchi
Saikaihatsu
Building)

100,000

Low

Nichii Home
NakanoMinamidai
Sompo Care
Lavire Kobe
TarumiTen(Nursing)

Nichii Home
Tama Plaza

Irise
Kamata/Yuseien
Sawayaka
SakuraNibankan

Mid-price
range forThose requiring
nursing care

Irise Nishioka

Gran Hills
Ogawarako

0
0.0

Low

0.5

1.0

1.5

2.0

2.5

3.0

Level of required nursing care (Note 2)(Note 1) This is a simplified chart designed by JSLP to organize the features of the senior living facilities in its portfolio.
(Note 2) For more information of “Level of required nursing care” (Care System in Japan), refer to page 32.

3.5

4.0

High
27

Unitholders’ special-benefit programs(4th fiscal period (2017/8))

JSL established the special-benefit program with the aim of contributing to the health and longevity of unitholders and their families.
The program offers special benefits not only at facilities that this investment corporation owns, but also at the following private
nursing homes managed by the following 9 operators.(Note 1)

Special benefits breakdown

at approx. 397 facilities

日本全国 合計約●●施設が対象

LIXIL SENIOR LIFE

Sompo Care Next Inc.
・≪On the condition of advancepayment≫ Discount on 3% of value
or 200,000 yen for resident; thehigher value will be applied・≪ On the condition of monthly
payment≫ 3% discount on monthly
usage charge・Same-day facility site-visit (withlunch) free of charge

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

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

23 facilities
Areas:
Tokyo, Saitama,
Kanagawa, Shizuoka,
Aichi, Kyoto, Hyogo,
Osaka

CENTURY LIFE CORPORATION

10 facilities
・Same-day facility site-visit(with lunch) free of charge

Areas:
Tokyo, Saitama
Chiba, Kanagawa,
Osaka

Hasegawa Care Service Co., Ltd.

≪On the condition of advance payment≫
Discount on one-time payment forresident (300,000 yen)・Trial residence free of charge (1night, 2-day stay, with dinner andbreakfast)・Same-day facility site-visit (withlunch) free of charge

5 facilities
Areas:
Tokyo, Fukuoka

Nichii Carepalace Company
・Same-day facility site-visit (withlunch) free of charge
・Trial residence free of charge(1-night, 2-day stay, withdinner, lunch and breakfast)

72facilities
Areas:
Tokyo, Saitama,
Chiba, Kanagawa,Shizuoka

99 facilities
Areas:
Hokkaido, Tokyo,
Saitama
Kanagawa, Chiba,
Nagano, Hyogo,
Okinawa

Excellent Care System T Co., Ltd.
・10％ discount on usage charge
for first month・ Trial residence free of charge (1night, 2-day stay, with dinner andbreakfast)・Same-day facility site-visit (withlunch) free of charge

14 facilities
Areas:
Tokyo, Kanagawa,
Aichi, Kyoto, Hyogo,
Tokushima

NM LIFE Co., Ltd.

Sawayaka Club Corporation
・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 (withlunch) free of charge・Same-day facility site-visit (with lunch)free of charge
・Free pick-up for facility site-visit and trial
residence・Discount on usage charge for one-month
・Residence movement expense free ofcharge from the metropolitan area
(Applies to Kobe, Okinawa and Hokkaidoarea)

58 facilities
Areas:
Hokkaido, Akita, Tochigi,
Saitama, Chiba, Niigata,
Aichi, Mie, Kyoto, Osaka
Hyogo, Ehime, Fukuoka,
Oita

・Discount on one-time payment forresident (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 (withlunch) free of charge (up to threetimes)

1 facility
Area:
Tokyo

(Note) The special benefits is applied private nursing homes that are managed by Sompo Care Next Inc., Seikatsu Kagaku Un-Ei Co.,Ltd., CENTURY LIFE CORPORATION, LIXIL Corporation(“LIXIL SENIOR LIFE”), Nichii Carepalace Company, Sawayaka Club Corporation, Hasegawa Care Service Co., Ltd, Excellent Care System Co., Ltd., and NMLIFE Corporation as of Aug.31, 2017. 28

Portfolio asset example ①
S-6

Activa Biwa

With nursing

Sale-and-leaseback / New development

Acquisition price：6,940 Million yen

Address

Otsu, Shiga

Construction

RC, F4（Care residence）
RC, F7（Care center）
SRC/S,B1/F12（Residence）

Leasable area

39,649.84㎡

Completion

August 1, 2007 (Care residence）
August 31,1987 (Care center）
July 15,1987［December 2, 1987 Extension、June 2, 1992 Modification・Extension］（Residence）

No. ofrooms(capacity)384（445）

Unit size

16.25㎡～104.73㎡

Averagenursing level(Note 1)

1.0

Operator

Activa Co., Ltd.

Activa Biwa

(100% subsidiary of Resorttrust Inc. which is listed on TSE)

(Note 1) For more information of “nursing level” (Care System inJapan),
refer to page 32.

Care residence

29Portfolio asset example ②
S-13

Alpha Eniwa Sta. Nishiguchi Saikaihatsu
Building

Residence type

Entrance Hall

Common space

Alpha Eniwa Sta. Nishiguchi
Saikaihatsu Building

Dining room

New development

Acquisition price：1,600 Million yen

Address

Eniwa, Hokkaido

Construction

RC,B1/F6

Leasablearea

5,343.33㎡

Completion

January 28, 2015

No. ofrooms(capacity)

73（73）

Unit size

20.16㎡～28.96㎡

Averagenursing level(Note1)

2.0

Operator

Hasegawa Care Service Co., Ltd.

(Note) For more information of “nursing level” (Care System in Japan),refer to page 32.

Living space

30

Portfolio asset example ③
S-4 Yuimaru Hijirigaoka

Residence type

Dining room

Sale-and-leaseback

Acquisition price：1,175 Million yen

AddressTama, Tokyo

Construction

RC, F4 (A、B、C building）

Leasable area

4,385.53㎡

Completion

November 15, 2011

No. ofrooms(capacity)

70（109）Unit size

21.74㎡～66.84㎡

Averagenursing level(Note1)

0.3

Operator

Community.Net Co., Ltd.

Living space

Living space
Yuimaru Hijirigaoka(Note) For more information of “nursing level” (Care System in Japan),refer to page 32.

Living space

31Qualifying for Care System in Japan(How to qualify the Nursing Level )Those who want to use a service provided by Long-term Care Insurance, first apply for acertification of long-term care or support need.

Applying for certification of long-term care need
The person who needs care or a member of his or her family can apply at Community Comprehensive Care Center or
the City Office.

Certification review
Someone from the city office or an agent from the home care provider commissioned by the city will interview the applicant
and his/her family regarding the applicant’s physical and mental condition. The officials need the results and provide apreliminary judgment.

Screening/ Judgement
The Long-term Care Approval Board will consider the preliminary judgment, particular matters stated at the certification
review, the attending physician’s report and determine which long-term care classification is the most appropriate. (TheLong-term Care Approval Board consists of specialists in medical treatment, public health, and welfare. They will screen andjudge applications to assess whether there is a need for care or support and, if such care or support is required, will also
determine the level of need.)

Approval (Nursing Level)
Based on the decision by the Long-term Care Approval Board, the applicant will be judged either unqualified (self-reliant),
or either Support Required (support levels 1 and 2) or Long-term Care Required (Care Levels 1-5).

32

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 6 listed investment corporations

Development

Information
provision

Warehousing

Renovation/
maintenanceHuman
support orprovision ofexpertise

Back-up
operator

Financialaffairs

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

Kenedix, Inc.

(Note) Including JSL

Shinsei Bank,
Limited20% shareholder
Operates senior living businessthrough subsidiary of
Seikatsu Kagaku Un-Ei Co.,
Ltd. , CENTURY LIFE and Furusato

5% shareholder
Real estate broker, realestate management, top classtrack record as a trust bank

HasekoCorporation

Mitsubishi UFJ
Trust and Banking
Corporation

LIXIL Group
Corporation

5% shareholder (Note1)
5% shareholder
Operates senior living facilities
through LIXILSENIOR LIFE COMPANY

Sompo Care Next Inc.
and Sompo Care Message
Inc. are wholly-owned
subsidiary. The top market
share for the # of room insenior living industry.

Sompo Holdings,
Inc.

(Note 1) The investment ratio is the ratio of the total shares issued by JSLP to the number of shares held by the Sponsor Company (in the case of Sompo Holdings,
Inc., the number of shares held by its subsidiary, Sompo Japan Nipponkoa Insurance Inc.).
(Note 2) “Preferential negotiating rights”: 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 JSLP no later than such information provision to parties other than JSLP in any 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 estate at the price requested by JSL.

33

Unitholder Information(as of the end of 4th fiscal period (2017/8))


Number of unitholders by investor type
Individuals
and others

Financial
institutions

Financial
Instrume
nts
Business
Operators

Otherdomestic
companiesForeigncompanies
andIndividuals

Total

5,821

4th fiscal
period（17/8）

6,291

31

19

168

47

6,086
2

30

19

161

57

6,558

3

4



Ownership ratio by investor type
Individuals
and others

Financial
institutions

Foreigncompanies
andIndividuals

5

Other
domestic
companies

Financial
Instruments
Business
Operators

1.1
3th fiscal
period

40.0

32.3

18.3

（17/2）

1.4

THE BANK OF NEW YORK MELLON SA/NV 10
TRUST ＆ CUSTODY SERVICE BANK, LTD.
(Securities Investment Trust Acct.)
JAPAN TRUSTEE SERVICES BANK, LTD.
(Trust Acct.)
THE MASTER TRUST BANK OF JAPAN, LTD.
(Trust Acct.)
BNP PARIBASSECURITIES SERVICESLUXEMBOURG/JASDEC/HENDERSON HHF

SICAV

Ratio
(%)

5,904

6.96

5,776

6.81

5,584

6.58

3,886

4.58

2,985

3.52

6

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

2,542

2.99

7

KENEDIX, INC.

1,950

2.30

1,399

1.65

8

8.3

No. of
units
held

Name

Rank

1

3rd fiscal
period（17/2）

Major unitholders

TRUST & CUSTODY SERVICE BANK, LTD.
（Trust Acct. ９）

9STATE STREET BANK AND TRUST COMPANY 505001

1,359

1.60

10

STATE STREET BANK AND TRUST COMPANY 505224

1,285

1.51

32,67038.54

4th fiscal
period

40.8

30.1

19.0

8.7

（17/8）

Total
0%

20%

40%

60%

80%

100%

（Note）Figures are based on the No. of units and are rounded down to the second decimal place. 34

Disclaimer
The contents of this document, including summary notes, quotes, data and other information, areprovided solely for informational purposes and not intended for the purpose of soliciting investment in, or
as a recommendation to purchase or sell, any specific products.
Please be aware that matters described herein may change or cease to exist without prior notice of any
kind. This document contains forward-looking statements and anticipations of future results, basedon current assumptions and beliefs in light of currently available information and resources. Risks anduncertainties, both known and unknown, including those relating to the future performance of the realestate market in Japan, interest rate fluctuations, competitive scenarios, and changing regulations or
taxation, may cause Japan Senior Living Investment Corporation (JSL)'s actual results, performance,
achievements and financial performance to be materially different from those explicitly or implicitly
expressed in this document.
With respect to any and all terms herein, including without limitation, this document, the information
provided is intended to be thorough. However, no assurance or warranties are given with respect to theaccuracy or completeness thereof.
Neither JSL nor Japan Senior Living Partners, Inc. (JSLP) shall be liable for any errors, inaccuracies, loss ordamage, or for any actions taken in reliance thereon, or undertake any obligation to publicly
update the information contained in this document after the date of this document.
Revised editions of this document will be posted on our website (http://www.jsl-reit.com/en/) if
there should be major corrections going forward.

35

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