FP 16 Semi-Annual Report
From May 1, 2022 to October 31, 2022

Securities Code 3309
4-15-1, Akasaka, Minato-ku, Tokyo
https://sekisuihouse-reit.co.jp/en/Co ntents
Outline of Asset Management Operation

1

Outline of the Investment Corporation

9

Condition of Investment Assets

12

Capital Expenditures for Property

25

Condition of Expenses and Debts

26

Condition of Investment Transactions

27

Other Information

30

Financial Statements
Balance Sheet

31

Statement of Income and Retained Earnings

33

Statement of Changes in Net Assets

34

Statement of Cash Distributions

37

Statement of Cash Flows38

Notes to Financial Statements

39

Supplementary Schedules

54

Independent Auditor’s ReportOutline of Asset Management Operation
1. Developments in Asset Management in the Fiscal Period under Review(1) Brief History of the Investment Corporation
Sekisui House Reit, Inc. (“SHR”) was established on September 8, 2014 as an investment corporation investing
primarily in commercial properties including office buildings, hotels and retail and other properties, sponsoredby Sekisui House, Ltd. (“Sekisui House”), a leading homebuilder representing Japan with an establisheddevelopment and management track record also in the property development business . SHR was listed on theReal Estate Investment Trust Section of the Tokyo Stock Exchange, Inc. (“Tokyo Stock Exchange”) on December
3, 2014 (securities code: 3309).
Sekisui House Residential Investment Corporation (“SHI ,” and collectively with SHR, the “Two Investment
Corporations”) was established on April 20, 2005 as an investment corporation investing primarily in residences
and retail properties, with the corporate name of JOINT REIT Investment Corporation, and listed on the Real
Estate Investment Trust Section of the Tokyo Stock Exchange on July 28, 2005. In March 2010, a collaboration
system was established with Sekisui House serving as the main sponsor and Spring Investment Co., Ltd. as joint
sponsor for the investment corporation, which was renamed from JOINT REIT Investment Corporation to Sekisui
House SI Investment Corporation in June 2010. Later, in June 2014, its Articles of Incorporation were revised to
set residences as the sole target of investment, and the corporate name was changed to Sekisui House SI
Residential Investment Corporation. Subsequently, in association with the shift to a structure in which Sekisui
House serves as the sole sponsor in March 2017, SHI was renamed to Sekisui House Residential Investment
Corporation in June 2017.
The Two Investment Corporations, each under the support of the Sekisui House Group (Note 1) , had separately
conducted asset management to expand their assets and secure stable returns by utilizing their respective
strengths with the aim of continuous enhancement of unitholder value. However, intending to secure strong
returns and stability and growth of cash distributions through promoting a steady increase of assets undermanagement and endeavor to maximize unitholder value by further expanding the scale of their assets andincreasing their market presence and expanding a variety of opportunities for growth through utilizing the
integrated corporate strength of the Sekisui House Group, the Two Investment Corporations conducted anabsorption-type merger with SHR as the surviving corporation and SHI as the dissolving corporation (the“Investment Corporation Merger”), setting May 1, 2018 as the effective date (Note 2) .
SHR’s investment policy is to conduct asset management that seeks to secure stable earnings over the medium
to long term and steady growth of its investment assets, with residential properties (Note 3) and commercial
properties(Note 4) as major investment targets.
(Note 1) “Sekisui House Group” refers to a group of companies comprised of Sekisui House and its consolidated subsidiaries and its
affiliates accounted for by the equity method. The same shall apply hereinafter.
(Note 2) In association with the Investment Corporation Merger, Sekisui House Asset Management, Ltd. (the “ former SHAM”), theasset management company for SHI, and Sekisui House Asset Management, Ltd. (former name: Sekisui House Investment
Advisors, Ltd.) (“SHAM”), the asset management company for SHR, carried out an absorption-type merger as of the same dateas the effective date of the Investment Corporation Merger, with SHAM being the surviving company and the former SHAM
being the dissolving company, and changed the company name to the current one.
(Note 3) “Residential properties” refer to real estate whose principal use is residence (including student dormitories, company housing,furnished residences with appliances which do not fall under service d apartments (*1) (*2)). The same shall apply herein after.
(*1) “Serviced apartments” refer to furnished residences with appliances where a dedicated operator provides certain services
to users. The same shall apply hereinafter.
(*2) Some serviced apartments may fall under apartment houses as defined in the Building Standards Act (Act No. 201 of 1950,
as amended) (the “Building Standards Act”). The same shall apply hereinafter.
(Note 4) “Commercial properties” refer to real estate whose principal u se is for office buildings, hotels and retail and other properties(including serviced apartments, serviced housing for the elderly, paid nursing homes and adult care centers (*); the same shallapply hereinafter.) and other non-residential business purposes. The same shall apply hereinafter.
(*)

Some serviced housing for the elderly, paid nursing homes and adult care centers may fall under apartment houses as
defined in the Building Standards Act. The same shall apply hereinafter.

－

1 －(2) Management Environment and Management Performancea. Management Environment
During the fiscal period under review, the Japanese economy improved moderately.
Under these circumstances, in the real estate leasing market, residences and office buildings which are positioned
by SHR as core assets in its portfolio, constitutes as of October 31, 2022 (the “end of the fiscal period underreview”) approximately 97% (acquisition price basis) of the portfolio. As for residences, demand for single type forsingle persons, which is susceptible to changes in the employment environment, has begun to pick up frombottoming out, and the occupancy rate for residences as a whole remained stable with a shift to positive comparedto the previous year. As for office buildings, although the office leasing market is showing signs of movement, thetrend to decrease office floor space resulted in a lack of strong growth in demand. This in turn resulted in vacancy
rates to remain flat or to increase, and rent levels slightly declined. On the other hand, for hotels that make up
about 3% of SHR’s portfolio (acquisition price basis), foreign visitors to Japan (estimated by the Japan National
Tourism Organization in October 2022) approached 0.5 million as the Japanese government accepted individual
trips and resumed visa exemptions. Compared to the same month of 2019, which was before the spread of COVID19, it is on the way to recovery.
Furthermore, in the real estate transaction market, despite remained uncertainty related to international affairs,
expected yields have remained at low levels as real estate investors maintain their positive investment stancetoward high-quality properties in Japan under the accommodative monetary policy outlined by the Bank of Japan.
b. Management Performance
Under the circumstances described in “a. Management Environment” above, SHR, with the aim of securing stablerevenue and further improving its profitability, SHR replaced assets with the disposition of one hotel property andacquisition of two residential properties.
As a result, the number of properties SHR owned as of the end of the fiscal period under review was 120(comprising 113 residential properties and 7 commercial properties) with an aggregate acquisition price (Note) of
554,466 million yen (270,466 million yen for residential properties and 284,000 million yen for commercial
properties).
Moreover, the occupancy rate of SHR’s investment assets as of the end of the fiscal period under review stood at
97.1% for residential properties, 94.6% for commercial properties and 96.4% for the entire portfolio against the
backdrop of the real estate leasing market as described above.
(Note) The “acquisition price” indicates the transaction price shown in the sales agreements for respective properties (excluding
consumption tax, local consumption tax and commission and other various expenses, rounded down to the nearest million yen).
For properties SHR succeeded from SHI through the Investment Corporation Merger, however, the value based on the appraisal
by real estate appraisers with April 30, 2018 as the appraisal date is used as the acquisition price, because the acceptance priceshould be the appraisal value upon the acquisition by SHR as such properties are accounted for by the purchase method with
SHR set as the acquiring corporation and SHI as the acquired corporation. The same shall apply hereinafter.

(3) Overview of Fund Procurement
a. Borrowings
On May 31, 2022, SHR decided to undertake new long-term borrowings totaling 6,000 million yen to be used forpartial repayment of short-term loans, in addition to refinancing a total of 10,000 million yen for the purpose of
repaying 7,000 million yen in borrowings due for repayment and redeeming 3,000 million yen of investment
corporation bonds that were due for redemption in this fiscal period. Furthermore, a portion of the proceeds fromthe disposition of assets effective August 2, 2022 was used to repay a total of 5,400 million yen in long -termborrowings that was due on August 31, 2022.
Likewise, with the aim of enhancing unitholder value over the medium to long term, SHR used approximately
4,000 million yen of cash on hand to acquire and cancel own investment units.
As a result, the balance of interest-bearing liabilities as of the end of the fiscal period under review is 258,242
million yen and the ratio of total interest-bearing liabilities to total assets (“LTV (total assets basis)”) is 45.2%.
Additionally, on October 26, 2022, SHR reestablished a commitment line agreement with a maximum amountof 15,000 million yen to secure flexible and stable financing methods.

－

2 －b. Credit Rating
The following table sets forth the status of credit ratings of SHR as of the end of the fiscal period under review.
Credit Rating Agency

Rating TypeJapan Credit Rating Agency, Ltd.

Long-term issuer rating: AA(JCR)Rating outlook: Stable

Japan Credit Rating Agency, Ltd.

Bond rating: AA(JCR)Rating and Investment Information, Inc.

Issuer rating: AA-(R&I)

Rating outlook: Stable(4) Overview of Business Performance and Distributions
Results in the fiscal period under review are operating revenue of 15,797 million yen, operating income of 8,078
million yen and ordinary income of 7,205 million yen, resulting in net income of 7,204 million yen. In addition,
concerning cash distributions, SHR decided to distribute 7,509 million yen, which is the amount of
unappropriated retained earnings after adding reversal of reserve for temporary difference adjustments ( 222
million yen) and reversal of reserve for reduction entry (82 million yen) based on the application of special tax
treatment for investment corporations (Article 67-15 of the Act on Special Measures Concerning Taxation (ActNo. 26 of 1957, as amended) (the “Special Taxation Measures Act”)).

－

3 －

2.

Status of Capital Increase, etc.
The following table sets forth the increase (/decrease) in unitholders’ capital and the total number of investment
units issued and outstanding for the last five years from the end of the fiscal period under review.

Unitholders’ capital(million yen)
Date

Event
Increase(Decrease)

Balance

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

Note

Balance

May 1, 2018

Split of investment units―

110,189

969,000

1,938,000(Note 1)

May 1, 2018

Allocation of investment
units through merger―

110,189

1,824,091

3,762,091(Note 2)June 10, 2019

Public offering

37,162

147,351

501,500

4,263,591(Note 3)

July 9, 2019

Third-party allotment

1,858

149,21025,075

4,288,666(Note 4)

November 1, 2021

Public offering

11,652160,862

137,500

4,426,166(Note 5)

November 29, 2021

Third-party allotment

420

161,283

4,967

4,431,133(Note 6)

October 17, 2022

Cancellation―

161,283(49,651)

4,381,482(Note 7)(Note 1) SHR implemented a two-for-one split of investment units with April 30, 2018 as the record date and May 1, 2018 as the effective
date.
(Note 2) Upon the Investment Corporation Merger, 1.65 SHR units following the investment unit split were allocated to every SHI unit o n
May 1, 2018 and 1,824,091 investment units were newly issued.
(Note 3) New investment units were issued at an issue price of 76,537 yen (with the issue amount being 74,103 yen) per unit through apublic offering to procure funds for the acquisition of new properties.
(Note 4) New investment units were issued at an issue amount of 74,103 yen per unit by way of third-party allotment, with the proceeds
thereof intended to be used for the partial repayment of the short -term loans that had been taken up to finance the acquisition of
the new properties.
(Note 5) New investment units were issued at an issue price of 87,574 yen (with the issue amount being 84,744 yen) per unit through apublic offering to procure funds for the acquisition of new properties.
(Note 6) New investment units were issued at an issue amount of 84,744 yen per unit by way of third-party allotment, with the proceeds
thereof intended to be used for the acquisition of new properties.
(Note 7) From June 16, 2022 to September 7, 2022, SHR acquired its own investment units through market purchases via the Tokyo Stock
Exchange based on a discretionary transaction contract with a securities company. As resolved at SHR's Board of Directors Meetingon September 30, 2022, all acquired investment units were canceled on October 17, 2022. In addition, funds related to the buybackof investment units were deducted from the capital surplus, thus there is no change in Unitholders’ Capital.

[Changes in Market Price of Investment Securities]
The following table sets forth the fiscal period high and low (closing price) on the Tokyo Stock Exchange Real
Estate Investment Trust Section on which SHR investment securities are listed.
12th fiscal period

13th fiscal period

14th fiscal period

15th fiscal period

16th fiscal period

From: May 1, 2020

From: Nov. 1, 2020

From: May 1, 2021

From: Nov. 1, 2021

From: May 1, 2022

To: Oct. 31, 2020

To: Apr. 30, 2021

To: Oct. 31, 2021

To: Apr. 30, 2022

To: Oct. 31, 2022

High (yen)78,70093,10098,60086,70085,600Low (yen)

62,50072,70086,20073,60075,500Fiscal period

－

4 －

3.

Performance of Distribution, etc.
Distribution per unit for the fiscal period under review (the 16th fiscal period) is 1,714 yen. The policy is to
distribute 7,509 million yen, which is the amount of unappropriated retained earnings after adding reversal ofreserve for temporary difference adjustments (222 million yen) and reversal of reserve for reduction entry (82million yen) in application of the special treatment of corporation tax under which the amount equivalent to
distribution of earnings is deductible from the taxable income of investment corporations as deductible expenses(Article 67-15 of the Special Taxation Measures Act).

Fiscal period
Total amount of unappropriatedretained earnings (thousand yen)Amount of accumulated earnings(thousand yen)
Total amount of cash distribution(thousand yen)[Distribution per unit] (yen)12th fiscal period 13th fiscal period 14th fiscal period 15th fiscal period 16th fiscal period
From: May 1, 2020 From: Nov. 1, 2020 From: May 1, 2021 From: Nov. 1, 2021 From: May 1, 2022
To: Oct. 31, 2020 To: Apr. 30, 2021 To: Oct. 31, 2021 To: Apr. 30, 2022 To: Oct. 31, 2022
6,992,995

7,103,009

8,520,020

6,745,643

7,204,510－

103,708

1,195,848――

7,226,402

7,183,515

7,732,464

7,524,063

7,509,860[1,685][1,675][1,803][1,698][1,714]

7,226,402

7,183,515

7,732,464

7,524,063

7,509,860[1,685][1,675][1,803][1,698][1,714]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

Total amount of distribution of
earnings out of the total amount ofcash distribution(thousand yen)[Distribution of earnings per unit](yen)
Total amount of refund ofinvestment in capital out of thetotal amount of cash distribution(thousand yen)[Amount of refund of investment incapital per unit] (yen)Total distribution amount fromreserve for temporary difference
adjustments out of total amount ofrefund of investment in capital(thousand yen)[Distribution amount from reserve
for temporary difference
adjustments per unit out of amountof refund of investment
in capital per unit] (yen)Total distribution amount from
distribution reducing unitholders’capital for tax purpose out of total
amount of refund of investment incapital (thousand yen)[Distribution amount from
distribution reducing unitholders’capital for tax purpose out of
amount of refund of investment incapital per unit] (yen)

－

5 －

4.

Future Management Policy(1) Future Trends Outlook
It is expected that the Japanese economy will pick up in the future, partly due to the effects of various policies
with COVID-19 in mind. However, the downturn in the overseas economy poses a risk of downward pressure on
the economy amid the continued global monetary tightening. In addition, due attention should be paid to theeffects of inflation, supply-side constraints, and changes in financial markets. In this environment, as there aresigns of an improvement in the employment environment, we believe that the trend toward a return to central
Tokyo and the separation of households in rural areas will accelerate in housing, which is the base of living
within the real estate leasing market. Likewise, we believe that housing units with relatively large floor plans
will continue to perform well. With regard to offices, where business activities are based, supply and demand
are expected to ease further due to the trend of contractual area shrinking due to changes in tenant needs
following the expansion of remote work and the prospect of new supply in the future, and we anticipate that
rents will remain weak. Hotel market is expected to recover due to the Japanese government's policy support
and the relaxation of immigration restrictions. However, it is necessary to continue to pay close attention to theinfection status in each country and region as well as the international situation.
In the real estate transaction market, SHR believes that the expected yields will remain at low levels for theforeseeable future amid accommodative financial conditions due to COVID-19.
(2) Future Management Policy and Challenges to Address
SHR will continue to focus on prime properties―high-quality residential properties and commercial properties
situated in strategic locations―as its core investment targets among other main investment t argets. By
implementing growth strategies that take full advantage of the real estate development and operation
capabilities and other strengths of the Sekisui House Group, which has established an extensive track record ofdeveloping and operating residential properties and commercial properties, SHR will seek to secure stableearnings over the medium to long term and steady growth of its investment assets and thereby aim to maximize
unitholder value.
On the other hand, SHR will endeavor to expand its asset size by exploring investment opportunities through theinitiatives of SHAM on its own.
Concerning main investment target areas in Japan for residential properties, SHR has set Greater Tokyo (Note 1)
as the core investment area with a focus on Tokyo 23 wards, which are believed to have a number of prime
properties that offer locations accommodating residents’ needs as well as excellent basic functions as a residence
including comfort and safety and such and are expected to see strong leasing demand and supplies of prime
properties. In addition, SHR will invest in other major cities throughout Japan outside of Greater Tokyo including
government designated cities as well as their surrounding commutable are as, where networks of Sekisui Houseand Six Sekisui House Real Estate Companies(Note 2) can be fully utilized.
SHR has set the three major metropolitan areas (Note 1) with three large cities, namely the Tokyo 23 wards, Osaka
City and Nagoya City, all of which SHR has knowledge in the course of developments by Sekisui House, as thecore investment areas in Japan for commercial properties, with a focus on the three large cities, in which SHR
can expect stable management against the backdrop of solidified demand resulting from being bases for tenantcompanies’ business activities. In addition, major cities throughout Japan other than the three major
metropolitan areas are set as investment areas.
SHR has executed a sponsor support agreement with Sekisui House. This agreement provides for utilization of
the urban redevelopment business track record and know -how of Sekisui House, allowing SHR to seek fromSekisui House property acquisition support for external growth (pipeline support). Specifically, such support will(a) grant SHR preferential negotiation rights with regard to the sale of domestic real estate, etc. owned ordeveloped by Sekisui House, (b) provide SHR with information on real estate, etc. owned or develope d in Japanby third parties, (c) provide SHR with warehousing functions, and (d) provide SHR with support for theredevelopment of owned properties.
Furthermore, SHR has concluded agreements concerning preferential negotiati on rights (and others) with theSix Sekisui House Real Estate Companies. Thus, particularly with residential properties, SHR will be able toreceive support in acquiring properties for external growth, such as granting of preferential negotiati on rights
regarding sale of domestic real estate, etc. owned or developed by the Six Sekisui House Real Estate Companies.

－

6 －Sekisui House and Sekisui House Real Estate Group(Note 3) possess (a) property management (“PM”) skills basedon their relationship with tenants, (b) know-how as a real estate developer to maintain/improve real estate value
through large-scale repair, renovation/value enhancement, redevelopment, etc., and (c) know -how on developing
various types of master leasing businesses. In relation to management of owned assets, by concluding a sponsor
support agreement with Sekisui House, SHR and SHAM can seek (i) technologies and know-how that contributeto the improvement of tenant satisfaction or other factors, including energy efficiency and eco -friendliness, that
contribute to the renovation/value enhancement of properties, (ii) personnel support, including provision of knowhow required for the operation of SHR, and (iii) support in areas such as negotiation of master lease agreementswith regard to commercial properties.
(Note 1) The “three major metropolitan areas” refer to “Greater Tokyo,” the “Osaka area” and the “Nagoya area,” where “Greater
Tokyo” refers to Tokyo, Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture, the “Osaka area” refers to Osaka
Prefecture, Kyoto Prefecture, Hyogo Prefecture and Nara Prefecture and the “Nagoya area” refers to Aichi Prefecture. The
same shall apply hereinafter.
(Note 2) “Six Sekisui House Real Estate Companies” is a collective name for Sekisui House Real Estate Tohoku, Ltd., Sekisui House
Real Estate Tokyo, Ltd., Sekisui House Real Estate Chubu, Ltd., Sekisui House Real Estate Kansai, Ltd., Sekisui House Real
Estate Chugoku&Shikoku, Ltd. and Sekisui House Real Estate Kyushu, Ltd., which are wholly-owned subsidiaries of Sekisui
House Real Estate Holdings, Ltd. ,which is a wholly-owned subsidiary of Sekisui House, and are core companies of realestate unit of the Sekisui House Group operating nationwide. The same shall apply hereinafter.
(Note 3) “Sekisui House Real Estate Group” refers to a group of companies comprised of Six Sekisui House Real Estate Companies as
the core, and of its subsidiaries and affiliates. The same shall apply hereinafter.

(3) Financial Strategy
SHR has adopted as its policy the conduct of stable and sound financial operations in order to secure stableearnings over the medium to long term and enhance unitholder value. Specifically, the policy is to form strong
and stable business relationships with leading domestic financial institutions, centering on megabanks, bolsteredby the creditworthiness of the sponsor, Sekisui House, and also to reduce refinancing risks and risks offluctuations in interest rates by exploring the extension of borrowing pe riods and working to diversify dates for
repayment, etc., while pursuing the optimum balance between fixed-rate and floating-rate debts.
In addition, with regard to LTV (total assets basis), although SHR has the policy to set the figure at 60% as its
upper limit, SHR will control the figure at mid-40%, which is a conservative level, setting the upper limit for thetime being at around 50% with a focus on securing its funding capabilities.
Furthermore, SHR will work to diversify its sources for direct and indirect financing, such as by issuinginvestment corporation bonds, in comprehensive consideration of the market environment, SHR’s financial
standing and other factors, while continuing its endeavors for stable and sound financial operations.

－7 －5. Significant Subsequent Events
Not applicable.
(Reference information)(1) Borrowing of Funds
SHR conducted borrowing of funds on November 30, 2022, for use as repayment funds of the long-termborrowings (3,000 million yen) which was due for repayment, on the same date as follows.
Fixed Interest Rate Borrowings
Category

Longterm

Lenders(Note 1)

Borrowing

Interest rate

amount(mm yen)(Note 2)
(Note 3)

MUFG Bank, Ltd.
(Note 6)700

Mizuho Bank,
Ltd.

350

Sumitomo Mitsui
Banking
Corporation

650

Sumitomo Mitsui
Trust Bank,
Limited350

Resona Bank,
Limited.

300

Development
Bank of Japan
Inc.

650

Total

Drawdown

Borrowingdate

methodNovember30, 2022

1.005%

3,000

Borrowingbased onindividual
loan
agreement,
dated
November 25,
2022.
The lenders
under theRepayment

Repayment

date(Note 4)

method(Note 5)

Security

Lump-sum

Unsecured

repayment
at maturity

andUnguaranteed－－

November 29,
2030

loan
agreement
are asindicated to
the left of thistable.
－－－－(Not e 1 ) MUFG Bank, Ltd., Mizuho Bank, Ltd., and Sumitomo Mitsui Banking Corporation are arrangers of the Borrowing.
(Not e 2 ) The borrowing expenses and other charge payable to the lenders are not included.
(Not e 3 ) The first interest payment date will be the last day of May 2023. Subsequent interest payment dates will be the last day of every six months andthe principal repayment date. Where the relevant date is not a business day, such date will be the immediately following busi ness day or (if theimmediately following business day falls into the next calendar month) the immediately preceding business day.
(Not e 4 ) Where the repayment date is not a business day, such date will be the immediately following business day or (if the immediate ly followin gbusiness day falls in the next calendar month) the immediately preceding business day.
(Not e 5 ) SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of the borrow ings (in whole
or in part), in the period between the drawdown date and the repayment date.
(Not e 6 ) The borrowing from MUFG Bank, Ltd. is ESG Loan for J-REIT.

－

8 －Outline of the Investment Corporation
1.

Status of Capital
Fiscal period

As of the end of As of the end of As of the end of As of the end of As of the end of
12th fiscal period 13th fiscal period 14th fiscal period 15th fiscal period 16th fiscal period(Oct. 31, 2020) (Apr. 30, 2021) (Oct. 31, 2021) (Apr. 30, 2022) (Oct. 31, 2022)

Total number of investment units

20,000,000

20,000,000

20,000,000

20,000,000

20,000,000

4,288,666

4,288,666

4,288,666

4,431,133

4,381,482

Unitholders’ capital (million yen)

149,210

149,210

149,210161,283

161,283

Number of unitholders (persons)

19,27918,942

18,637

20,87621,154authorized (units)
Total number of investment units
issued and outstanding (units)

2.

Matters Concerning Investment Units
Of the unitholders as of the end of the fiscal period under review, the following are the top ten unitholders interms of investment unitholding ratio.
Number ofunits owned(units)Name

Custody Bank of Japan, Ltd. (Trust Account)

Percentage of
owned units tototal units issued
and outstanding(%)

1,130,285

25.80

The Master Trust Bank of Japan, Ltd. (Trust Account)

689,267

15.73

Sekisui House, Ltd.

200,750

4.58

The Nomura Trust and Banking Co., Ltd. (Investment Trust Account)

190,116

4.34

STATE STREET BANK WEST CLIENT - TREATY 505234

64,016

1.46

SSBTC CLIENT OMNIBUS ACCOUNT

61,984

1.41

SMBC Nikko Securities Inc.

58,808

1.34

STATE STREET BANK AND TRUST COMPANY 505103

57,752

1.32

The Shinkumi Federation Bank

45,726

1.04

JP MORGAN CHASE BANK 385771

44,331

1.01

2,543,035

58.04

Total

(Note) Percentage of owned units to total units issued and outstanding is rounded to the nearest second decimal place.

－

9 －

3.

Matters Concerning Directors, etc.

(1) Name and other information of the executive director, supervisory directors, and an independent auditor
The following table sets forth information on the executive director, supervisory directors, and an independent
auditor of SHR.

Position

Executive
Director

Name

Atsuhiro Kida

Yu YadaKey concurrently held position, etc.

Total amount of compensationfor each position during period(thousand yen)

Director,
Sekisui House Asset Management, Ltd.
Lawyer, HIFUMI Law

―

1,800

Supervisor
Director
Rei Yamashita
Independent

Ernst & Young

AuditorShinNihon LLC

CertifiedPublic Accountant,

Rei Yamashita

Certified Public Accountant Office―

1,800
17,400(Note 2)

(Note 1) None of the executive director or supervisory directors owns SHR investment units in their own name or in the name of anotherperson. In addition, supervisory directors may be officers of other corporations other than those stated above, but none of suchcorporations, including those stated above, has vested interest in SHR.
(Note 2) The total amount of compensation for the independent auditor, as stated above, is an approximation and includes compensation
for auditing matters related to English financial statements.

(2) Policy for determining whether to dismiss or refuse the reappoin tment of independent auditor
Dismissal of the independent auditor is subject to consideration at a meeting of the board of directors of SHR inaccordance with the provisions of the Investment Trusts Act. Refusal of reappointment of the independent auditor
is also subject to consideration at a meeting of the board of directors of SHR by taking into account the quality ofaudits, amount of audit fee and various other circumstances in a comprehensive manner.

－

10 －

4.

Matters Concerning the Director’s Liability Insurance Contract

The directors’ liability insurance contract concluded by SHR is as follows.
Scope of insured person

Overview of the contents of the Director’s Liability Insurance Contract(Overview of Insured Events Subject to Compensation)
SHR concluded a directors' liability insurance contract with an insurance company as set forth in
Article 116-3(1) of the Investment Trust Act and covers any damage that may arise when the insured
assumes liability for the execution of its duties or receives a claim for the pursuit of such liability.
All Executive Directors andSupervisory Directors(Ratio of Insurance Premiums to be Borne)
All insurance premiums for all insured persons are borne by SHR(Measures to Ensure that the Appropriateness of the Execution of Duties by Directors, etc. is not
Impaired)
Up to 100 thousand yen for each insured person and up to 1 million yen for each series of liability
are set as the immunity amount.

5.

Asset Management Company, Asset Custodian and Administrative AgentsThe following table sets forth information on the asset management company, asset custodian and administrative
agents of SHR as of the date of this document.
Entrustment category

Name

Asset Management Company

Sekisui House Asset Management, Ltd.

Asset Custodian

Mitsubishi UFJ Trust and Banking Corporation

Administrative Agent (Transfer Agent)Mizuho Trust & Banking Co., Ltd.

Administrative Agent (Administrative Agent for Operation of

Mitsubishi UFJ Trust and Banking Corporation

Administrative Instruments)
Administrative Agent (Administrative Agent for Investment

MUFG Bank, Ltd.

Corporation Bonds)

－

11

－

Condition of Investment Assets
1.

Composition of Assets of the Investment Corporation
The following table sets forth the composition of assets of SHR as of the end of the fiscal period under review.
As of the end of 15th fiscal
periodType of asset

Asset category

Geographical area, etc.

As of the end of 16th fiscal
period(Apr. 30, 2022)(Oct. 31, 2022)
Total amount As a percentage Total amount As a percentage
heldof total assets
heldof total assets(million yen)(%)(million yen)(%)
(Note 1)
(Note 2)
(Note 1)
(Note 2)

Greater Tokyo

196,68433.9

209,517

36.7

Other areas

56,1589.7

55,896

9.8

Three major
metropolitan areas

297,29451.3

274,312

48.0

―

―

―

―

550,137

94.9

539,726

94.5

―

―

486

0.1

Deposits and other assets

29,794

5.1

30,786

5.4

Total amount of assets

579,931100.0

570,999

100.0

Residential
properties
Real estate intrust
Commercial
properties

Other areas

Total of real estate in trust
Equity interest in a silent partnership (Note 4)(Note 1) “Total amount held” is the carrying amount (or, for real estate in trust, the depreciated book value) as of the end of each f iscal period,
rounded down to the nearest million yen.
(Note 2) Figures under the heading “As a percentage of total assets” have been rounded to the nearest first decimal place.
(Note 3) SHR does not own any overseas real estate, etc. as of the end of the fiscal period under review.
(Note 4) This is the equity interest in a silent partnership with Godo Kaisha Gemini1 as the business operator.

2.

Major Portfolio Assets
The following table sets forth an overview of the major portfolio assets (top ten properties by book value at the end of
period) of SHR as of the end of the fiscal period under review.
As a

Name ofreal estate, etc.

Book value
at the end of
period(million yen)
(Note 1)

Leasablearea

Leased area(m2)
(Note 3)(m2)
(Note 2)

Occupancy
rate

percentage of
total
property-(%)(Note 4)

relatedoperating

Usage typerevenue(%) (Note 5)

Garden City Shinagawa
Gotenyama

69,754

38,577.99

32,611.77

84.5

10.9

Akasaka Garden City (Note 6)

50,055

21,735.43

19,432.79

89.4

6.8

Gotenyama SH Building

49,32619,999.97

19,999.97

100.0

7.2

42,112

29,657.53

29,657.53

100.0

8.8

36,06417,006.94

17,006.94

100.0

6.0

Hommachi Garden City
(Hotel portion) (Note 7)

16,691

18,092.98

18,092.98

100.0

2.7

Hotel

Prime Maison EGOTANOMORI

11,17329,048.95

28,301.31

97.4

1.9

ResidencePrime Maison Nakameguro

10,212

6,033.98

5,840.02

96.8

1.5

Residence

Esty Maison Ojima

8,261

9,905.97

9,501.66

95.9

1.6

Residence

Hommachi Minami Garden
City
Hommachi Garden City
(Office building portion) (Note 7)

－

12 －

Officebuilding
Officebuilding
Officebuilding
Officebuilding
Officebuilding

Prime Maison Shirokanedai
Tower
Total

7,894

6,772.89

6,448.84

95.2

1.6

Residence

301,548

196,832.63

186,893.81

95.0

49.0

―

(Note 1) “Book value at the end of period” refers to the depreciated book value of each property as of the end of the fiscal period under review,rounded down to the nearest million yen. The same shall apply hereinafter.
(Note 2) “Leasable area” refers to the floor area presumably available for leasing based on the lease agreement or building drawing, etc. foreach property that is valid as of the end of the fiscal period under review, rounded down to the second decimal place. In cases where
the properties SHR owns are co-ownership interest or quasi co-ownership interest of trust beneficiary interests in real estate forrespective properties, the figure indicates the value obtained by multiplying the leasable area of real estate or real estate in trust (orthe leasable area of exclusively owned portions for properties under compartmentalized ownership interest) by the ratio of theownership interest owned by SHR or trustees. The same shall apply hereinafter.
(Note 3)

“Leased area” refers to the sum total of the leased area indicated in the respective lease agreements, which are valid as of the end of
the fiscal period under review, with the end tenants for each of the properties or the leased area based on building drawings. However,the leasable area of each property is indicated in case fixed-rent type master lease agreements have been concluded with the master
lease companies, regardless of whether lease agreements have been concluded with the end tenants. For Akasaka Garden City, thefigure indicates the area corresponding to the portions owned by SHR. The same shall apply hereinafter.

(Note 4) “Occupancy rate” refers to the ratio of leased area to leasable area of each property as of the end of the fiscal period under review,rounded to the nearest first decimal place. The figure indicated in the “Total” column indicates the ratio of the sum of leased area of
each property to the sum total of leasable area of each property, rounded to the nearest first decimal place.
(Note 5) Figures under the heading “As a percentage of total property-related operating revenue” indicate the ratio of property-related
operating revenue of each property for the fiscal period under review to total property -related operating revenue of each property of
SHR’s entire portfolio for the fiscal period under review, rounded to the nearest first decimal place.
(Note 6)

For “Akasaka Garden City”, as of June 10, 2019, SHR owned 65.45% quasi co -ownership interest of trust beneficiary interest in realestate regarding the compartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor under groundthrough 4th floor above ground and 11th floor through 19th floor above ground of the building, as well as the accompanying ri ght ofsite (ratio of right of site: 662,768/1,000,000 (or approximately 66.3%)). A s of November 1, 2021, SHR acquired the trust beneficiaryinterest in all of the exclusively-owned portions of the 5th floor through 9th floor above ground of the building, as well as theaccompanying right of site (ratio of right of site: 273,490/1,000,000 (or approximately 27.3%)) and in 96.05% of co-ownership of all of
the exclusively-owned portions of the 10th floor above ground of the building, as well as the accompanying right of site (ratio of rightof site: 54,698/1,000,000 (or approximately 5.5%)), and the figures indicate the value corresponding to the portions owned by SHR.
The same shall apply hereinafter.

(Note 7) “Hommachi Garden City” comprises the portions used as office building and retail property (“Hommachi Garden City (Office building
portion)”) and the portions used as a hotel (“Hommachi Garden City (Hotel portion)”.) In this document, the overview and othe rinformation regarding the property may be described separately for the Office building portion and the Hotel portion. The sam e shallapply hereinafter.

－

13 －

3.

Details of Assets (Real Estate, etc.) in the Portfolio
The following table lists an overview of the properties owned by SHR as of the end of the fiscal period under review.

Usage
type

Property
number(Note 1)Name ofreal estate, etc.

Location(Note 2)Type of ownershipBook value
at the end of
period(million yen)

Estimatedvalue at theend ofperiod(million yen)
(Note 3)

Residence

R-001

Esty Maison Ginza

Chuo-ku, Tokyo

Real estate trust
beneficiary interests

6,595

7,770

R-002

Esty Maison Azabunagasaka

Minato-ku, Tokyo

Real estate trust
beneficiary interests

1,762

2,000

R-003

Esty Maison Ebisu II

Shibuya-ku, Tokyo

Real estate trust
beneficiary interests

2,021

2,430

R-004

Esty Maison Ebisu

Shibuya-ku, Tokyo

914

935

R-005

Esty Maison Kanda

Chiyoda-ku, Tokyo

1,545

1,910

R-006

Esty Maison Kitashinjuku

Shinjuku-ku, Tokyo

Real estate trust
beneficiary interests

1,528

1,850

R-007

Esty Maison
Asakusakomagata

Taito-ku, Tokyo

Real estate trust
beneficiary interests

2,071

2,530

R-008

Esty Maison Kawasaki

Kawasaki-shi,
Kanagawa

Real estate trust
beneficiary interests

2,367

2,840

R-010

Esty Maison Kameido

Koto-ku, Tokyo

Real estate trust
beneficiary interests

1,479

1,910

R-011

Esty Maison Meguro

Meguro-ku, Tokyo

1,067

1,360

R-012

Esty Maison Sugamo

Toshima-ku, Tokyo

1,587

1,880

R-013

Esty Maison Kyobashi

Osaka-shi, Osaka

Real estate trust
beneficiary interests

2,908

3,110

R-014

Esty Maison Hakuraku

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

881

980

R-015

Esty Maison Minamihorie

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,112

1,170

R-016

Esty Maison Gotanda (Note 4)

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

3,025

3,600

R-017

Esty Maison Oisendaizaka

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,696

3,040

R-018

Esty Maison
Shinagawa Seaside

Shinagawa-ku,
Tokyo

2,108

2,540

R-019

Esty Maison Minamiazabu

Minato-ku, Tokyo

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

1,288

1,420

R-021

Esty Maison Kawasaki II

Kawasaki-shi,
Kanagawa

Real estate trust
beneficiary interests

1,879

2,470

R-022

Esty Maison Azabujuban

Minato-ku, Tokyo

Real estate trust
beneficiary interests

2,706

3,050

R-023

Esty Maison Itabashihoncho

Itabashi-ku, Tokyo

Real estate trust
beneficiary interests

973

1,050

R-027

Esty Maison
Musashikoyama (Note 5)

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,004

1,220

R-028

Esty Maison Sendagi(Note 6)

Bunkyo-ku, Tokyo

674

822

R-030

Esty Maison Hakatahigashi

Fukuoka-shi,
Fukuoka

2,188

2,680

R-033

Prime Maison
Musashinonomori

Kodaira-shi, Tokyo

Real estate trust
beneficiary interests

1,766

2,260

R-034

Prime Maison Higashisakura

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,545

1,730

R-035

Prime Maison Kayabakoen

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

814

959

R-036

Esty Maison Sangenjaya II

Setagaya-ku,
TokyoReal estate trust
beneficiary interests

758

932

－

14 －

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Usagetype

Property
number(Note 1)Name ofreal estate, etc.

Location(Note 2)Type of ownershipBook value
at the end of
period(million yen)

Estimatedvalue at theend of period(million yen)
(Note 3)

R-037

Esty Maison Itabashi C6

Itabashi-ku,
TokyoReal estate trust
beneficiary interests

2,449

2,900

R-038

Sha Maison Stage
Hakata (Note 7)

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,332

2,830

R-039

Esty Maison Kinshicho

Sumida-ku,
TokyoReal estate trust
beneficiary interests

1,191

1,430

R-040

Esty Maison Musashikoganei

Koganei-shi,
Tokyo

Real estate trust
beneficiary interests

1,739

2,100

R-041

Prime Maison Gokiso

Nagoya-shi, Aichi

1,934

2,200

R-042

Prime Maison Yuhigaoka

Osaka-shi, Osaka

863

1,120

R-043

Prime Maison Kitatanabe

Osaka-shi, Osaka

611

711

R-044

Prime Maison Momochihama

Fukuoka-shi,
Fukuoka

1,902

2,240

R-045

Esty Maison Akihabara

Taito-ku, Tokyo

Real estate trust
beneficiary interests

1,890

2,130

R-046

Esty Maison Sasazuka

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

3,369

3,830

R-047

Prime Maison Ginza East

Chuo-ku, Tokyo

Real estate trust
beneficiary interests

6,169

7,320

R-048

Prime Maison Takami

Nagoya-shi, Aichi

1,052

1,160

R-049

Prime Maison Yadaminami

Nagoya-shi, Aichi

839

926

R-050

Prime Maison Teriha

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

1,160

1,340

R-051

Esty Maison
Higashishirakabe

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,598

1,790

R-052

Esty Maison Sengoku

Bunkyo-ku,
TokyoReal estate trust
beneficiary interests

1,328

1,480

R-053

Esty Maison Daizawa

Setagaya-ku,
TokyoReal estate trust
beneficiary interests

2,213

2,580

R-054

Esty Maison Togoshi

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,711

2,060

R-055

Esty Maison Nishitemma

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,596

1,800

R-056

Esty Maison Shirokanedai

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,366

3,050

R-057

Esty Maison Higashishinjuku

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

1,593

2,000

R-058

Esty Maison Motoazabu

Minato-ku, Tokyo

Real estate trust
beneficiary interests

1,506

1,820

R-059

Esty Maison Toritsudaigaku

1,000

Esty Maison
Musashikoyama II

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

837

R-060

Meguro-ku,
TokyoShinagawa-ku,
Tokyo

989

1,160

R-061

Esty Maison Nakano

Nakano-ku,
TokyoReal estate trust
beneficiary interests

1,806

2,050

R-062

Esty Maison Shinnakano

Nakano-ku,
TokyoReal estate trust
beneficiary interests

976

1,100

R-063

Esty Maison Nakanofujimicho

Nakano-ku,
TokyoReal estate trust
beneficiary interests

947

1,090

R-064

Esty Maison Tetsugakudo

Nakano-ku,
TokyoReal estate trust
beneficiary interests

1,102

1,260

R-065

Esty Maison Koenji

Suginami-ku,
TokyoReal estate trust
beneficiary interests

1,121

1,350

R-066

Esty Maison Oshiage

Sumida-ku,
TokyoReal estate trust
beneficiary interests

2,384

2,820

Residence－

15 －Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Usagetype

Property
number(Note 1)Name ofreal estate, etc.

Location(Note 2)Type of ownershipBook value
at the end of
period(million yen)

Estimatedvalue at theend of period(million yen)
(Note 3)

R-067

Esty Maison Akabane

Kita-ku, Tokyo

Real estate trust
beneficiary interests

3,087

3,640

R-068

Esty Maison Oji

Kita-ku, Tokyo

Real estate trust
beneficiary interests

1,557

1,860

R-069

Prime Maison Waseda

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

1,493

1,910

R-070

Prime Maison Hatchobori

Chuo-ku, Tokyo

Real estate trust
beneficiary interests

1,370

1,660

R-071

Prime Maison Jimbocho

1,853

2,180

R-072

Prime Maison
Gotenyama East

2,860

3,420

R-073

Sha Maison Stage Akihabara

Chiyoda-ku,
TokyoReal estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

587

624

R-074

Esty Maison Aoi

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

2,336

2,600

R-075

Esty Maison Yakuin

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,545

2,700

R-076

Esty Maison Kinshicho II

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

7,868

10,100R-077

Esty Maison Ojima

Koto-ku, Tokyo

Real estate trust
beneficiary interests

8,261

11,400R-078

Prime Maison Fujimidai

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

2,141

2,220

R-079

Esty Maison Tsurumai

Nagoya-shi, Aichi

4,484

5,070

R-080

Prime Maison Morishita

Koto-ku, Tokyo

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

1,817

2,220

R-081

Prime Maison Shinagawa

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,875

2,230

3,018

3,200

1,799

2,020

1,172

1,250

Residence

Chiyoda-ku,
Tokyo
Shinagawa-ku,
Tokyo

R-082

Prime Maison Odorikoen

Sapporo-shi,
Hokkaido

Real estate trust
beneficiary interests

R-083

Prime Maison Minami 2-jo

Sapporo-shi,
Hokkaido

R-084

Prime Maison
Kamokamogawa

Sapporo-shi,
Hokkaido

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

R-085

Prime Maison
Central Park(Note 8)

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,126

2,464

R-086

Sha Maison Stage Yahiro

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

1,806

2,080

R-087

Prime Maison Ebisu

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

4,238

5,560

R-088

Sha Maison Stage Kanazawa
Nishiizumi

Kanazawa-shi,Ishikawa

999

978

R-089

Esty Maison Unomori

Yokkaichi-shi,
Mie

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

757

832

R-091

Sha Maison Stage Hino

Hino-shi, Tokyo

Real estate trust
beneficiary interests

1,285

1,550

R-092

Prime Maison
Yokohama Nihon-odori

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

4,578

5,160

R-093

Kobe Women’s Student
Housing

Kobe-shi, Hyogo

Real estate trust
beneficiary interests

5,198

6,310

R-094

Prime Maison Shibuya

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

2,372

2,720

R-095

Prime Maison Hatsudai

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

2,897

3,280

R-096

Esty Maison Uemachidai

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,051

1,200

R-098

Prime Maison
Shirokane-takanawa

Minato-ku, Tokyo

Real estate trust
beneficiary interests

4,766

5,380

－

16 －

Usagetype

Property
number(Note 1)Name ofreal estate, etc.

Location(Note 2)Type of ownershipBook value
at the end of
period(million yen)

Estimatedvalue at theend of period(million yen)
(Note 3)

R-099

Prime Maison
Ichigayayamabushicho

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

4,086

4,260

R-100

Esty Maison Morishita

Sumida-ku,
TokyoReal estate trust
beneficiary interests

627

711

R-101

Prime Maison
Shirokanedai Tower

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

7,894

10,800R-102

Prime Maison Otsuka

Toshima-ku,
TokyoReal estate trust
beneficiary interests

3,658

4,640

R-103

Prime Maison Asakusabashi

Taito-ku, Tokyo

1,667

2,100

R-104

Prime Maison Daikanyama

Meguro-ku,
Tokyo

2,506

3,310

3,389

4,670

5,721

7,460

R-105
R-106

Prime Maison
Gotenyama West
Esty Maison
Toyosu Residence(Note 9)

Shinagawa-ku,
Tokyo
Koto-ku, Tokyo

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

R-108

Esty Maison Ijiri

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

388

431

R-109

Prime Maison
Mitatsunamachi

Minato-ku,
TokyoReal estate trust
beneficiary interests

2,038

2,460

R-110

Prime Maison Hongo

Bunkyo-ku,
TokyoReal estate trust
beneficiary interests

2,588

3,000

R-111

Prime Maison Kuramae

2,510

Esty Maison Yokohamaaobadai(Note 10)

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

2,175

R-112

Taito-ku,
Tokyo
Yokohama-shi,
Kanagawa

2,998

3,490

R-113

Esty Maison Shizuoka Takajo

Shizuoka-shi,
Shizuoka

Real estate trust
beneficiary interests

662

663

R-114

Sha Maison Stage Hirose-doriSendai-shi,
MiyagiReal estate trust
beneficiary interests

870

934

R-115

Esty Maison
HIGASHIBETSUIN

Nagoya-shi,
Aichi

Real estate trust
beneficiary interests

2,262

2,210

R-116

Esty Maison Kayaba

Nagoya-shi,
Aichi

Real estate trust
beneficiary interests

935

949

R-117

Esty Maison
SHIRAKABEMINAMI

Real estate trust
beneficiary interests

681

692

R-118

Nagoya-shi,
Aichi
Setagaya-ku,
Prime Maison Shimokitazawa Tokyo

Real estate trust
beneficiary interests

2,639

2,670

R-119

Prime Maison Meguro

Meguro-ku,
TokyoReal estate trust
beneficiary interests

2,356

2,420

R-120

Prime Maison Ryogoku

Sumida-ku,
TokyoReal estate trust
beneficiary interests

1,573

1,580

R-121

Prime Maison Nakameguro

Meguro-ku,
TokyoReal estate trust
beneficiary interests

10,212

10,800R-122

Prime Maison Itabashi

5,000

Prime Maison
EGOTANOMORI(Note 11)

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

4,965

R-123

Itabashi-ku,
TokyoShinjuku-ku,
Tokyo

11,173

10,900R-124

Prime Maison Waseda dori

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

2,261

2,520

-

265,414

310,093

Residence

Subtotal

-

－

17 －

Usagetype

Officebuilding

Property
number(Note 1)Name ofreal estate, etc.

Location(Note 2)Type of ownershipBook value
at the end of
period(million yen)

Estimatedvalue at theend of period(million yen)
(Note 3)O-001

Garden City Shinagawa
Gotenyama

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

69,75487,900O-002

Gotenyama SH Building

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

49,326

61,700O-003

Hommachi Minami Garden
City

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

42,11254,800O-004

Hommachi Garden City
(Office building portion)

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

36,06445,000O-005

HK Yodoyabashi Garden
Avenue(Note 12)6,230

Hirokoji Garden Avenue

6,131

7,370

O-007

Akasaka Garden City

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

4,174

O-006

Osaka-shi,
Osaka
Nagoya-shi,
Aichi

50,05551,900

Minato-ku,
Tokyo

Subtotal
H-001
Hotel

Hommachi Garden City
(Hotel portion)

Osaka-shi,
Osaka

-

257,621314,900

Real estate trust
beneficiary interests

16,691

18,100Subtotal--

16,691

18,100

Total

-

-

539,726

643,093(Note 1) “Property number” is the number assigned by property after classifying the properties owned by SHR by usage type, and theletters R, O and H refer to residence, office building and hotel, respectively. The same shall apply hereinafter.
(Note 2) “Location” is indicated based on the statement in the registry. If there are multiple statements of locations in the registry, either
one of them is indicated.
(Note 3)

“Estimated value at the end of period” refers to the value stated in each real estate appraisal report (with the end of April as theappraisal date) for each fiscal period ended April, and the value stated in each real estate appraisal report (with the end o f Octoberas the appraisal date) or the survey value stated in each real estate survey value report (with the end of October as the surveydate) as a result of value surveys not pursuant to real estate appraisal standards, for each fiscal period ended October, rou nded
down to the nearest million yen.

(Note 4)For Esty Maison Gotanda, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest to partof the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site: 387,036/426,933 (orapproximately 90.7%)).

(Note 5)For Esty Maison Musashikoyama, SHR owns real estate trust beneficiary interests for the compartmentalized ownership interest
to part of the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site:
117,678/127,609 (or approximately 92.2%)).

(Note 6)For Esty Maison Sendagi, SHR owns real estate trust beneficiary inte rests for the compartmentalized ownership interest to partof the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site: 89,730/103,842 (orapproximately 86.4%)).

(Note 7)

Sha Maison Stage Hakata is a property on a leased land owned by the Urban Renaissance Agency and for which a general fixedterm leasehold right is established with a lease term of 50 years from December 1, 2002.

(Note 8)

Part of the land of Prime Maison Central Park (lot number: 23-32) is a leased land, while the building (store) on the leased landis owned by the lessee.

(Note 9)Esty Maison Toyosu Residence is a property on a leased land owned by the Urban Renaissance Agency and for which a general
fixed-term leasehold right is established with a lease term of 65 years from March 17, 2006.

(Note 10) Esty Maison Yokohama-aobadai is comprised by two buildings, Esty Maison Yokohama-aobadai North and Esty Maison
Yokohama-aobadai South. As the two buildings are located on the same site, SHR manages these buildings as a single property
reffering to collectively as Esty Maison Yokohama-aobadai and the total amount of each building is indicated.
(Note 11) Prime Maison EGOTANOMORI is a property on a leased land owned by the Urban Renaissance Agency and for which a general
fixed-term leaseholdright is established with a lease term of 70 years from April 24, 2015.
(Note 12) For HK Yodoyabashi Garden Avenue, SHR owns real estate trust beneficiary interests for the compartmentalized ownershipinterest to all of the exclusively owned portions of the 1st through 6th floors above ground of the building and for the accompanying
right of site (ratio of right of site: 405,901/1,000,000 (or approximately 40.6%)).

－

18 －

The following table sets forth the change in status of leasing of real estate, etc. owned by SHR.
15th fiscal period
16th fiscal period
From: Nov. 1, 2021 To: Apr. 30, 2022
From: May 1, 2022 To: Oct. 31, 2022
PropertyAs a
PropertyAs a
Total Occupancy related percentage
Total Occupancy related percentage
number of
rate
operating of total number of
rate
operating of total
Usage
Property
Name oftenants [at the end revenue property- tenants [at the end revenue propertytype
numberreal estate, etc.
[at the end of fiscal[during
related [at the end of fiscal[during
relatedof fiscal
period]fiscaloperating of fiscal
period]fiscaloperatingperiod](%)
period]revenueperiod](%)
period]revenue(Note 1)
(Note 2)
(Note 1)
(Note 2)
(million(%)(million(%)(Note 4)(Note 4)yen)(Note 3)yen)(Note 3)
R-001 Esty Maison Ginza
1
98.1
178
1.2
1
97.3
181
1.2
Esty Maison
R-002
1
89.7
46
0.3
1
95.6
46
0.3
Azabunagasaka
Esty Maison
R-003
1
94.7
56
0.4
1
92.8
56
0.4
Ebisu II
R-004 Esty Maison Ebisu
1
88.9
21
0.1
1
100.0
23
0.2
R-005 Esty Maison Kanda
1
1
94.8
44
0.3
92.2
44
0.3
Esty Maison
R-006
1
89.9
44
0.3
1
95.3
44
0.3
Kitashinjuku
Esty Maison
R-007
1
91.1
64
0.4
1
96.4
63
0.4
Asakusakomagata
Esty Maison
R-008
1
1
98.6
77
0.5
96.8
77
0.5
Kawasaki
Esty Maison
R-010
1
95.9
53
0.4
1
99.0
52
0.3
KameidoEsty Maison
R-011
1
95.0
30
0.2
1
91.8
29
0.2
MeguroEsty Maison
R-012
1
1
97.2
49
0.3
95.0
52
0.3
SugamoEsty Maison
R-013
1
97.8
86
0.6
1
98.9
88
0.6
Kyobashi
Esty Maison
R-014
1
96.5
31
0.2
1
94.7
29
0.2
Hakuraku
Esty Maison
R-015
1
1
94.2
33
0.2
100.0
34
0.2
Minamihorie
Esty Maison
R-016
1
98.9
96
0.7
1
96.4
95
0.6
GotandaEsty Maison
R-017
1
93.9
77
0.5
1
94.7
78
0.5
Oisendaizaka
Residence
Esty Maison
R-018
1
1
94.1
64
0.4
91.7
63
0.4
Shinagawa Seaside
Esty Maison
R-019
1
96.2
33
0.2
1
86.5
31
0.2
Minamiazabu
Esty Maison
R-021
1
99.2
63
0.4
1
96.7
64
0.4
Kawasaki II
Esty Maison
R-022
1
1
94.0
65
0.4
97.4
65
0.4
Azabujuban
Esty Maison
R-023
1
95.4
30
0.2
1
95.4
28
0.2
Itabashihoncho
Esty Maison
R-027
1
95.9
30
0.2
1
98.3
29
0.2
Musashikoyama
Esty Maison
R-028
1
1
97.3
22
0.2
100.0
22
0.1
Sendagi
Esty Maison
R-030
1
97.7
86
0.6
1
99.0
87
0.6
Hakatahigashi
Prime Maison
R-033
1
92.6
67
0.5
1
93.5
64
0.4
Musashinonomori
Prime Maison
R-034
1
1
96.5
51
0.4
97.8
52
0.3
Higashisakura
Prime Maison
R-035
1
92.8
30
0.2
1
100.0
30
0.2
Kayabakoen
Esty Maison
R-036
1
92.2
23
0.2
1
92.1
23
0.2
Sangenjaya II
Esty Maison
R-037
1
1
97.4
78
0.5
92.4
79
0.5
Itabashi C6
Sha Maison Stage
R-038
1
100.0
96
0.7
1
100.0
96
0.6
HakataEsty Maison
R-039
1
91.7
35
0.2
1
97.2
35
0.2
Kinshicho－

19 －UsageType

15th fiscal period
16th fiscal period
From: Nov. 1, 2021 To: Apr. 30, 2022
From: May 1, 2022 To: Oct. 31, 2022
PropertyPropertyAs a
As a
relatedrelatedTotal Occupancy
percentage
Total Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof total
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalof fiscal
period]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)

Property
numberName ofreal estate, etc.

R-040

Esty Maison
Musashikoganei

1

100.0

56

0.4

1

95.1

54

0.4

R-041

Prime Maison
Gokiso

1

98.3

64

0.4

1

98.3

63

0.4

1

100.0

30

0.2

1

96.4

30

0.2

1

100.0

23

0.2

1

96.1

22

0.2

1

100.0

69

0.5

1

100.0

69

0.5

1

91.2

55

0.4

1

96.2

55

0.4

1

98.0

90

0.6

1

95.4

90

0.6

1

94.4

172

1.2

1

93.5

173

1.2

1

100.0

33

0.2

1

100.0

34

0.2

1

100.0

29

0.2

1

100.0

29

0.2

1

100.0

51

0.4

1

100.0

52

0.3

1

100.0

46

0.3

1

100.0

46

0.3

1

98.7

37

0.3

1

95.6

37

0.2

1

91.0

61

0.4

1

97.7

63

0.4

1

97.8

50

0.3

1

98.8

49

0.3

1

93.9

52

0.4

1

96.9

51

0.3

1

96.1

70

0.5

1

92.5

73

0.5

1

98.2

49

0.3

1

96.3

47

0.3

1

100.0

43

0.3

1

100.0

41

0.3

(Note 3)

R-042
R-043
R-044
R-045
R-046
R-047
R-048
R-049
R-050
R-051
R-052
R-053
Residence

R-054
R-055
R-056
R-057
R-058

Prime Maison
Yuhigaoka
Prime Maison
Kitatanabe
Prime Maison
Momochihama
Esty Maison
Akihabara
Esty Maison
SasazukaPrime Maison
Ginza East
Prime Maison
TakamiPrime Maison
Yadaminami
Prime Maison
TerihaEsty Maison
Higashishirakabe
Esty Maison
Sengoku
Esty Maison
Daizawa
Esty Maison
Togoshi
Esty Maison
Nishitemma
Esty Maison
Shirokanedai
Esty Maison
Higashishinjuku
Esty Maison
Motoazabu(Note 3)

R-059

Esty Maison
Toritsudaigaku

1

94.9

23

0.2

1

100.0

23

0.2

R-060

Esty Maison
Musashikoyama II

1

97.8

29

0.2

1

95.2

30

0.2

R-061

Esty Maison
Nakano

1

98.9

53

0.4

1

98.9

53

0.4

R-062

Esty Maison
Shinnakano

1

100.0

30

0.2

1

96.1

28

0.2

R-063

Esty Maison
Nakanofujimicho

1

100.0

28

0.2

1

93.2

28

0.2

R-064

Esty Maison
Tetsugakudo

1

91.5

34

0.2

1

95.2

34

0.2

R-065

Esty Maison Koenji

1

96.6

33

0.2

1

100.0

34

0.2

R-066

Esty Maison
Oshiage

1

96.3

72

0.5

1

95.0

70

0.5

－

20 －

UsageType

Property
numberName ofreal estate, etc.

15th fiscal period
16th fiscal period
From: Nov. 1, 2021 To: Apr. 30, 2022
From: May 1, 2022 To: Oct. 31, 2022
PropertyPropertyAs a
As a
Total Occupanc related
Total Occupanc related
percentag
percentag
number of y rate operating
number of y rate operating
e of totale of total
tenants[at therevenuetenants[at therevenue
propertyproperty[at theend of[during[at theend of[during
relatedrelatedend offiscalfiscalend offiscalfiscaloperatingoperatingfiscalperiod]period]fiscalperiod]period]revenuerevenueperiod](%)(million
period](%)(million(%)(%)(Note 1)
(Note 2)
(Note 1)
(Note 2)yen)
yen)(Note 4)(Note 4)(Note 3)

R-067
R-068
R-069
R-070
R-071
R-072
R-073
R-074
R-075
R-076
R-077
R-078
R-079
R-080
R-081
Residence

R-082
R-083
R-084
R-085
R-086
R-087
R-088
R-089
R-091
R-092
R-093
R-094
R-095
R-096

Esty Maison
AkabaneEsty Maison Oji
Prime Maison
WasedaPrime Maison
Hatchobori
Prime Maison
JimbochoPrime Maison
Gotenyama East
Sha Maison Stage
Akihabara
Esty Maison Aoi
Esty Maison
YakuinEsty Maison
Kinshicho II
Esty Maison Ojima
Prime Maison
Fujimidai
Esty Maison
TsurumaiPrime Maison
Morishita
Prime Maison
ShinagawaPrime Maison
Odorikoen
Prime Maison
Minami 2-joPrime Maison
Kamokamogawa
Prime Maison
Central Park
Sha Maison Stage
YahiroPrime Maison
Ebisu
Sha Maison Stage
Kanazawa
Nishiizumi
Esty Maison
Unomori
Sha Maison Stage
Hino
Prime Maison
Yokohama Nihonodori
Kobe Women’sStudent Housing
Prime Maison
ShibuyaPrime Maison
Hatsudai
Esty Maison
Uemachidai(Note 3)

1

98.2

94

0.6

1

99.4

94

0.6

1

92.0

46

0.3

1

97.7

48

0.3

1

92.4

41

0.3

1

97.6

45

0.3

1

93.1

36

0.2

1

88.8

36

0.2

1

94.8

51

0.3

1

100.0

53

0.4

1

95.9

90

0.6

1

100.0

83

0.6

1

100.0

15

0.1

1

100.0

15

0.1

1

98.8

71

0.5

1

96.3

71

0.5

1

98.4

75

0.5

1

95.0

74

0.5

1

97.1

223

1.5

1

99.1

228

1.5

1

93.2

242

1.6

1

95.9

247

1.6

1

98.5

74

0.5

1

88.7

72

0.5

1

100.0

155

1.1

1

100.0

155

1.0

1

94.3

58

0.4

1

97.7

53

0.4

1

93.9

56

0.4

1

100.0

58

0.4

1

88.8

110

0.7

1

90.1

109

0.7

1

99.3

75

0.5

1

98.5

75

0.5

1

97.2

48

0.3

1

98.2

48

0.3

1

94.7

88

0.6

1

96.6

87

0.6

1

100.0

56

0.4

1

100.0

56

0.4

1

96.4

112

0.8

1

98.6

112

0.7

1

100.0

39

0.3

1

100.0

43

0.3

1

100.0

27

0.2

1

100.0

27

0.2

1

100.0

51

0.4

1

98.1

51

0.3

1

94.3

139

0.9

1

98.2

141

0.9

1

98.9

219

1.5

1

98.9

219

1.5

1

93.4

60

0.4

1

94.8

63

0.4

1

98.3

81

0.6

1

98.2

80

0.5

1

95.7

34

0.2

1

100.0

33

0.2

－

21 －

Usagetype

Property
numberR-098

Prime Maison
Shirokanetakanawa

1

94.4

115

0.8

1

95.6

115

0.8

R-099

Prime Maison
Ichigayayamabushi
cho

1

87.9

95

0.6

1

93.0

99

0.7

1

100.0

18

0.1

1

100.0

19

0.1

1

97.0

230

1.6

1

95.2

234

1.6

1

91.7

110

0.8

1

92.4

110

0.7

1

93.6

50

0.3

1

97.5

49

0.3

Prime Maison
Daikanyama
Prime Maison
Gotenyama West
Esty Maison
Toyosu Residence

1

95.5

72

0.5

1

97.4

70

0.5

1

100.0

121

0.8

1

95.9

123

0.8

1

94.9

474

3.2

1

96.8

472

3.1

Esty Maison Ijiri

1

100.0

13

0.1

1

100.0

13

0.1

1

89.4

51

0.3

1

90.6

59

0.4

1

89.2

66

0.5

1

100.0

67

0.4

1

94.3

57

0.4

1

97.7

60

0.4

1

100.0

86

0.6

1

100.0

86

0.6

1

100.0

23

0.2

1

100.0

23

0.2

1

100.0

29

0.2

1

100.0

29

0.2

1

100.0

69

0.5

1

100.0

69

0.5

1

100.0

30

0.2

1

100.0

29

0.2

1

100.0

20

0.1

1

100.0

20

0.1

1

81.9

57

0.4

1

94.3

55

0.4

1

96.4

49

0.3

1

100.0

48

0.3

1

96.7

36

0.2

1

86.6

34

0.2

1

95.4

110

0.8

1

96.8

221

1.5

1

92.4

50

0.3

1

95.8

113

0.8

－

－

－

－

1

97.4

290

1.9

－

－

－

－

1

97.8

25

0.2

12

96.5

7,690

52.1

12

97.1

8,197

54.3

－

22 －

R-100
R-101
R-102
R-103
R-104
R-105
R-106
R-108
R-109
R-110
Residence

Name ofreal estate, etc.

15th fiscal period
16th fiscal period
From: Nov. 1, 2021 To: Apr. 30, 2022
From: May 1, 2022 To: Oct. 31, 2022
Total
PropertyAs a
PropertyAs a
number Occupancy related percentage
Total
Occupancy related percentageofrate
operating of total number of
rate
operating of total
tenants [at the end revenue property- tenants [at the end revenue property[at theof fiscal[during
related [at the end of fiscal[during
relatedend ofperiod]fiscaloperating of fiscal
period]fiscaloperatingfiscal(%)
period]revenueperiod](%)
period]revenue(Note 2)
(Note 1)
(Note 2)
period](million(%)(million(%)(Note 1)
(Note 4)(Note 4)yen)(Note 3)yen)(Note 3)

R-111
R-112
R-113
R-114
R-115
R-116
R-117
R-118
R-119
R-120
R-121
R-122
R-123
R-124
Subtotal

Esty Maison
Morishita
Prime Maison
Shirokanedai
Tower
Prime Maison
OtsukaPrime Maison
Asakusabashi

Prime Maison
Mitatsunamachi
Prime Maison
Hongo
Prime Maison
Kuramae
Esty Maison
Yokohama-aobadai
Esty Maison
Shizuoka Takajo
Sha Maison
StageHirose-dori
Esty Maison
HIGASHIBETSUI
N
Esty
MaisonKayabaEsty Maison
SHIRAKABE
MINAMI
Prime Maison
Shimokitazawa
Prime Maison
MeguroPrime Maison
Ryogoku
Prime Maison
Nakameguro
Prime Maison
ItabashiPrime Maison
EGOTANOMORI
Prime Maison
Waseda doriUsagetype

Property
numberName ofreal estate, etc.

15th fiscal period
16th fiscal period
From: Nov. 1, 2021 To: Apr. 30, 2022
From: May 1, 2022 To: Oct. 31, 2022
PropertyPropertyAs a
As a
relatedrelatedTotal Occupancy
percentage
Total Occupancy
percentage
operatingoperatingnumber ofrateof total number ofrateof total
revenuerevenuetenants [at the end
property- tenants [at the end
property[during[during[at the end of fiscal
related [at the end of fiscal
relatedfiscalfiscalof fiscal
period]operating of fiscal
period]operatingperiod]period]period](%)
revenueperiod](%)
revenue(million(million(Note 1)
(Note 2)
(Note 1)
(Note 2)
(%)
(%)
yen)
yen)
(Note 4)(Note 4)(Note 3)

O-001

98.6

1,837

12.5

1

84.5

1,650

10.9

1

100.0

1,088

7.4

1

100.0

1,088

7.2

1

100.0

1,303

8.8

1

100.0

1,322

8.8

1

100.0

903

6.1

1

100.0

903

6.0

1

100.0

163

1.1

1

100.0

168

1.1

1

100.0

206

1.4

1

100.0

211

1.4

1

89.4

944

6.4

1

89.4

1,028

6.8

4

97.9

6,448

43.7

4

93.9

6,374

42.3

1

100.0

402

2.7

1

100.0

402

2.7

1

100.0

215

1.5

－

－

109

0.7

Subtotal

2

100.0

618

4.2

1

100.0

511

3.4

Total

17

97.0

14,756

100.0

16

96.4

15,082

100.0

O-003
O-004
O-005
O-006
O-007
Subtotal
H-001
Hotel

(Note 1)

(Note 3)

1

O-002

Officebuilding

Garden City
Shinagawa
Gotenyama
Gotenyama SH
Building
Hommachi Minami
Garden City
Hommachi Garden
City(Office building
portion)HK Yodoyabashi
Garden Avenue
Hirokoji Garden
AvenueAkasaka Garden
City

H-002

Hommachi Garden
City(Hotel portion)
The Ritz-Carlton,
Kyoto“Total number of tenants” refers to the sum total of the number of tenants under, and indicated in, the respective lease agre ements
for each property that are valid as of the end of fiscal period under review (or, if a master lease agreement that is valid as of theend of each fiscal period has been concluded for the property, the number of lessees under the master lease agreement). In the“Subtotal” and “Total” columns, however, a tenant that leases spaces in multiple properties is counted as one. Furtherm ore, of theoffice buildings, the total number of end tenants for Garden City Shinagawa Gotenyama, Hommachi Minami Garden City, HK
Yodoyabashi Garden Avenue, Hirokoji Garden Avenue and Akasaka Garden City where pass-through type master lease agreements
have been concluded is 18, 16, 8, 7 and 20, respectively as of the end of the 15th fiscal period (from Nov. 1, 2021 to Apr. 30, 2022)
and 17, 16, 8, 7 and 20, respectively as of the end of the 16th fiscal period (from May 1, 2022 to Oct. 31, 2022).

(Note 2)

“Occupancy rate” refers to the ratio of leased area to leasable area of each property as of the end of each fiscal period, ro unded to
the nearest first decimal place. The figures indicated in the “Subtotal” columns are the ratio of the subtotal of lease d area of each
property classified by usage type to the subtotal of leasable area of each property classified by usage type, and the figure indicatedin the “Total” column is the ratio of the total of leased area of each property to the sum total of leasab le area of each property, as
the occupancy rate of the entire portfolio. Both figures have been rounded to the nearest first decimal place.

(Note 3)

“Property-related operating revenue [during fiscal period]” indicates the property -related operating revenue of each property foreach fiscal period, rounded down to the nearest million yen.

(Note 4)

Figures under the heading “As a percentage of total property-related operating revenue” indicate the ratio of property-related
operating revenue of each property for each fiscal period or the subtotal of property-related operating revenue of each property
classified by usage type for each fiscal period to total property-related operating revenue of each property for each fiscal period,
rounded to the nearest first decimal place.

(Note 5)

SHR disposed “The Ritz-Carlton, Kyoto” on August 2, 2022. Accordingly, “Property-related operating revenue [during fiscal period]”and “As a percentage of total property-related operating revenue” for the property in the above table indicate the figures for theduration SHR owned them in the 16th fiscal period (from May 1, 2022 to Oct. 31, 2022).

－

23 －

4.

Details of Renewable Energy Power Generation Facility, etc.
Not applicable.

5.

Details of Right to Operate Public Facility, etc.
Not applicable.

6.

Details of Investment Securities
The following are the details for investment securities as of the end of the fiscal period under review.
Estimated
value
（
）

Book value
Asset name

Asset type

Quantity

Equity interest in asilent partnership with Silent partnership
Godo Kaisha Gemini1 as equity interests
the business operator
Total

－

Valuation
gain or loss
（thousandyen）

Remarks

486,179－－

486,179

－

－

Note1

Unit
price

Price
(thousand
yen）

Unit
price

Price
（thousand
yen）

－

－

486,179－－－

486,179－(Note 1)

"Estimated value" is the book value.

(Note 2)

Underlying asset refers to 34.55% quasi co-ownership interest of the trust beneficiary interest in real estate regarding thecompartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor underground through 4th floor above
ground and 11th floor through 19th floor above ground of the “Akasaka Garden City” building, as well as the accompanying rightof site (ratio of right of site: 662,768/1,000,000 (or approximately 66.3%)), which has not yet been acquired by SHR.

7.

Table of Status of Contract Amount, etc. and Fair Value of Specified Transactions
The following table sets forth the status of contract amount, etc. and fair value of specified transactions at SHR
as of the end of the fiscal period under review.

Category

Contract amount, etc.
(thousand yen) (Note 1)
Amountdue after 1 year

Type

Fair value(thousand yen)
(Note 2)

Interest rate swap transaction
Transaction other thanmarket transaction(Under which floating interest rates
are receivable and fixed interest

13,750,000

4,750,000(12,202)

117,611,000

103,301,000－(Note 3)

131,361,000

108,051,000(12,202)

rates are payable)
Interest rate swap transaction
Transaction other thanmarket transaction(Under which floating interest rates
are receivable and fixed interest
rates are payable)
Total(Note 1) The contract amount, etc. of interest rate swap transactions is based on notional principal amounts.
(Note 2) The fair value was calculated by the counterparty of the relevant transaction based on the actual market interest rate, etc.
(Note 3) The fair value is omitted because the transaction meets the criteria for special accounting under the Accounting Standards for
Financial Instruments.

8.

Status of Other Assets
Trust beneficiary interests with real estate as the main assets in trust are stated in “3. Details of Assets (Real
Estate, etc.) in the Portfolio” and “6. Details of Investment Securities” above. As of the end of the fiscal period
under review, there are no specified assets other than real estate, etc., asset-backed securities, etc. andinfrastructure assets, etc. in the portfolio.

9.

Status of Holding of Assets by Country and Region
As of the end of the fiscal period under review, there are no portfolio real estate, etc. in any other country or region
besides Japan.

－

24 －

Capital Expenditures for Property
1.

Schedule of Capital Expenditures
The main capital expenditure amounts accompanying renovation work, etc. currently planned for properties
owned by SHR, are as follows. However, a portion of such amounts may ultimately be classified as expenses in thecourse of the accounting process.

Name of real estate, etc.
(location)
Esty Maison Akabane(Akabane, Kita-ku, Tokyo)
Prime Maison Musashinonomori(Josuihoncho, Kodaira-shi, Tokyo)
Sha Maison Stage Hirose-dori(Tachimachi, Aoba-ku, Sendai-shi,
Miyagi)Esty Maison Nakano(Chuo, Nakano-ku, Tokyo)
Sha Maison Stage Hino
(Shinmachi, Hino-shi, Tokyo)(Note)

PurposeScheduled period

Large-scale repairs
Large-scale repairs
Large-scale repairs
Large-scale repairs
Large-scale repairs

From: November 2022
To: April 2023
From: May 2023
To: October 2023
From: May 2023
To: October 2023
From: May 2023
To: October 2023
From: November 2022
To: April 2023

Scheduled amount (million yen) (Note)
Payment for
Total
the fiscal
Amountamount period under already paid
review
124

―

―

119

―

―

99

―

―

84

―

―

77

―

―

“Scheduled amount” refers to the amount arrived at by multiplying (i) the full amount required for the work by (ii) the ratio of thecompartmentalized ownership interest or quasi co -ownership interest owned by SHR, when SHR owns compartmentalized ownershipinterest in the property or quasi co-ownership interest in the real estate trust beneficiary interests for the property (in th e event SHR
owns a quasi co-ownership interest related to trust beneficiary interest whose trust estate is composed of compartmentalized
ownership interest, the total cost multiplied by the ratio of compartmentalized ownership interest and then multiplied by the quasi
co-ownership interest ratio) that is subject to the relevant work.

2.

Capital Expenditures During Period
An overview of capital expenditures conducted by SHR for its properties during the fiscal period under review is
as set forth in the following table. Total capital expenditures during the fiscal period under review was 722 million
yen and, together with 390 million yen of repair expenses charged to expenses in the fiscal period under review,
work amounting to 1,112 million yen was implemented.

Name of real estate, etc.
Purpose(location)
Prime Maison Ginza East
Large-scale repair(Tsukiji, Chuo-ku, Tokyo)
Prime Maison Higashisakura
Large-scale repair(Higashisakura, Higashi-ku, Nagoya-shi, Aichi)
Other capital expenditures
Total

3.

PeriodPayment amount(million yen)

From: May 2022
To: October 2022
From: May 2022
To: October 2022

164
135
422
722

Cash Reserves for Long-Term Repair Plans
SHR had no cash reserved for long-term repair plans as of the end of the fiscal period under review (Note).
(Note) “Reserve fund for repair,” which has been reserved by management associations at the properties owned by SHR in order tosecure expenses for repair works expected in the future, is not included in the cash reserves.

－

25 －

Condition of Expenses and Debts
1.

Details of Expenses Pertaining to Management, etc.
(Unit: thousand yen)Item

15th fiscal period
From: Nov. 1, 2021
To: Apr. 30, 2022

16th fiscal period
From: May 1, 2022
To: Oct. 31, 2022

Asset management fee

910,076

1,021,403

Asset custody fee

10,387

10,679Administrative service fees

48,10049,974

Directors’ compensations

3,600

3,600

266,326

356,800

1,238,491

1,442,457

Other expenses
Total(Note) In addition to the amounts shown above, the “Asset management fee” contains the asset management fees of 1,440 thousand yen for
the 16th fiscal period which were included in the book value of the silent partnership equity interest.

－

26 －

Condition of Investment Transactions
1.

Status, etc. of Sale and Purchase of Real Estate, etc., Asset-Backed Securities, etc., Infrastructure Assets, etc.
and Infrastructure-Related Assets
Acquisition
Name of real estate, etc.

Acquisition date

Disposition

Acquisition
price(million yen)

Disposition date

(Note)

Disposition
Gain (Loss)
price
Book value
on sale(million yen) (million yen)(million yen)
(Note)

Equity interest in the silent
partnership with Godo Kaisha
Gemini1 as the business operator

August 1, 2022

480

―

―

―

―

Prime Maison EGOTANOMORI

August 2, 2022

10,500――――Prime Maison Waseda doriAugust 2, 2022

2,200

―

―

―

―

August 2, 2022

23,00022,288710－

23,00022,288710

The Ritz-Carlton, Kyoto

―

―

Total

―

13,180(Note) “Acquisition price” and “Disposition price” indicate the transaction prices shown in the sales and purchase agreements for respective
owned properties (excluding consumption tax, local consumption tax and miscellaneous expenses including transaction fees), ro unded
down to the nearest million yen. The same shall apply hereinafter.

2.

Status, etc. in Respect of Sale and Purchase of Other Assets
Not applicable.
Main assets other than the abovementioned real estate, etc., asset-backed securities, etc., infrastructure assets,etc. and infrastructure-related assets are essentially bank deposits or bank deposits within assets in trust.

3.

Investigation into Value, etc. of Specified Assets(1)

Real Estate, etc. (Appraisal)

Acquisition
or
Disposition

Name of real estate, etc.

Transaction
Type of asset
date

Prime Maison
EGOTANOMORI

August 2,
2022

Prime Maison Waseda doriAugust 2,
2022

Acquisition

Disposition The Ritz-Carlton, Kyoto(Note)

August 2,
2022

Real estate
trust
beneficiaryinterests
Real estate
trust
beneficiaryinterests
Real estate
trust
beneficiaryinterests

Acquisition/
Appraisal
disposition
value
price
(million yen)(million yen)
(Note)

Appraiser

Date ofappraisal

10,50010,800Rich Appraisal
Instituteco.,Ltd.

June 1,
2022

2,200

2,420

Japan Real
Estate InstituteJune 1,
2022

23,00022,295

Rich Appraisal
Instituteco.,Ltd.

April 30,
2022

The appraisal value stated above is derived by applying the “Real Estate Appraisal Standards; Particulars; Chapter 3: Apprais al on
Value of Real Estate Subject to Securitization.”

－

27 －

(2)

Equity Interest in a Silent Partnership

Acquisition
or
Disposition

Stock name

Equity interest in the silent
partnership with Godo
Acquisition
Kaisha Gemini1 as thebusiness operator(Note)

Transaction date

Acquisition price(million yen)August 1, 2022

480

Appraisal value(million yen)

480

Regarding transactions that require an investigation into the price, etc. of specified assets in accordance with Article 201, Clause 2of the Investment Trust Act (1 acquisition transaction of the equity interest in the silent partnership), Akasaka Limited Liability
Audit Corporation conducts an investigation based on the "Practical Guidelines on the Agreed Procedures for Investigating the Price,
etc. of Specialized Assets in Investment Trusts and Investment Corporations" in Guideline 4460 published by the Japan Certified
Public Accountants Association. SHR has been notified of the results of the investigation.

(3) Others
Not applicable.
4.

Status of Transactions with Interested Persons, etc. (Note 1)(1)

Status of Transactions
Amount of purchase and sale, etc.

Category

Amount of purchase, etc.

Total amount

12,700 million yen

Amount of sale, etc.
23,000 million yen

Breakdown of status of transactions with interested persons, etc.
Sekisui House, Ltd.

(2)12,700 million yen[100.0%]23,000 million yen[100.0%]

Amount of Commission Fee, etc.

Category

Total amount ofcommission fee,
etc. (A)(thousand yen)Management fee(Note 2)

Breakdown of transactions with interested persons, etc.
Payee

Amount paid(B)(thousand yen)

As a percentage of
total amount (B/A)(%)

Sekisui House Real Estate Tokyo, Ltd.

469,451

44.0

Sekisui House Real Estate Chubu, Ltd.

67,781

6.3

Sekisui House GM Partners, Ltd.

49,739

4.7

Sekisui House, Ltd.

31,805

3.0

Sekisui House Real Estate Kyushu, Ltd.

18,819

1.8

Sekisui House Real Estate Kansai, Ltd.

3,673

0.3

Sekisui House Real Estate Tohoku, Ltd.

1,050

0.1

148

0.0

1,067,854

SH Hotel Systems Ltd.

(Note 1) “Interested persons, etc.” refers to interested persons, etc. of the asset management company with which SHR has executed an asset
management entrustment agreement as provided in Article 123 of the Order for Enforcement of the Act on Investment Trusts andInvestment Corporations (Order for Enforcement No. 480 of 2000, as amended) and Article 26, Item 27 of the Rules on Investment
Reports, etc. of Investment Trusts and Investment Corporations of The Investment Trusts Association, Japan.
(Note 2) “Management fee” has been rounded down to the nearest thousand yen.
(Note 3) Other than the commission fee, etc. indicated above, the amounts paid to interested persons, etc. for repair works, etc. are as f ollows.
The figures have been rounded down to the nearest thousand yen.
Sekisui House Real Estate Tokyo, Ltd

309,671 thousand yen

Sekisui House, Ltd.

298,243 thousand yen

Sekisui House Real Estate Chubu, Ltd.

94,108 thousand yen

Sekisui House Real Estate Kyushu, Ltd.

45,151 thousand yen

Sekisui House GM Partners, Ltd.

19,735 thousand yen

Sekisui House Real Estate Tohoku, Ltd.

4,303 thousand yen

Sekisui House Real Estate Kansai, Ltd.

1,134 thousand yen

－

28 －

5.

Status, etc. of Transactions with the Asset Management Company Pertaining to Business Operations ofConcurrent Business Engaged in by the Asset Management Company
There are no applicable transactions as of the end of the fiscal period under review, as SHAM does not concurrently
engage in any type I financial instruments or type II financial instruments business (as defined in the Financial
Instruments and Exchange Act (Act No. 25 of 1948, as amended)), building lots and buildings transaction business,or specified joint real estate ventures.

－

29 －

Other Information
1.

Notice(1) Meeting of the Board of Directors of the Investment Corporation
In the fiscal period under review, there is no information regarding the matters, etc. provided in Items 2, 3, 5, 6
and 8 of Article 109, Paragraph 2 of the Investment Trusts Act approved at a meeting of the board of directors of
SHR, as well as other matters deemed important.
(2) Fraction of Amounts and Ratios
In this document, unless otherwise stated, figures are rounded down to the nearest whole number, and ratios arerounded off.

－

30 －

1. Financial Statements（1） Balance Sheet(Thousands of yen)

AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Vehicles in trust
Accumulated depreciation
Vehicles in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets
Total assets

－

31 －

15th Fiscal Period

16th Fiscal Period(As of April 30, 2022)(As of October 31, 2022)

11,154,608
16,033,132
188,420
259,778
159,040（1,022 ）27,793,958

11,416,266
16,340,838
198,066
300,452
58,286（2,653 ）28,311,256

180,182,133（21,399,288 ）
158,782,845
1,587,002（302,079 ）

184,641,536（23,440,710 ）
161,200,826
1,620,073（333,254 ）

1,284,922
2,424,138（385,167 ）1,286,818
2,387,047（433,368 ）

2,038,970
153（153 ）
0774,779（218,587 ）
556,192
385,124,884
12,859547,800,674

1,953,678－－－
870,024（276,299 ）
593,724
368,656,815
17,859533,709,723

2,348,619
4,876
2,353,495

6,034,763
3,622
6,038,385－
801,516
641,322369,782
1,812,621
551,966,791

486,179
1,530,346
625,332
157,179
2,799,038
542,547,147

121,255
49,105
170,361
579,931,111

107,395
33,602140,997
570,999,401

(Thousands of yen)
15th Fiscal Period

16th Fiscal Period(As of April 30, 2022)(As of October 31, 2022)

Liabilities
Current liabilities
Operating accounts payable

835,543

1,116,383

Short-term loans payable

13,700,000

7,700,000

Current portion of investment corporation bonds

3,000,000－

Current portion of long-term loans payable

23,500,000

31,310,000

Accounts payable – other

1,043,814

1,169,452

190,432

217,054580－

678,924

Advances received

697,331712,064

Derivatives liabilities

26,04910,052

Other34,121

12,75843,027,874

42,927,275

Investment corporation bonds

31,500,000

31,500,000

Long-term loans payable

191,942,000

187,732,000

Tenant leasehold and security deposits in trust

14,669,870

14,353,152

7,847

Accrued expenses
Income taxes payable
Accrued consumption taxes

Total current liabilities

584

Non-current liabilities

Derivatives liabilities
Other
Total non-current liabilities
Total liabilities

871

2,149
－

238,120,589

233,587,302

281,148,463

276,514,577

161,283,304

161,283,304

Net assets
Unitholders’ equity
Unitholders’ capital
SurplusCapital surplus
Deduction from capital surplus

128,598,415－

Capital surplus, net

128,598,415

124,598,450

388,798

993,722－*3

128,598,415（3,999,964 ）Voluntary reserve
Reserve for reduction entry
Reserve for special account for reduction entry

1,195,848

Reserve for temporary difference adjustments*4

Total voluntary reserve604,535*42,189,182

Unappropriated retained earnings
Total surplus
Total unitholders’ equity

417,038
1,410,761

6,745,643

7,204,510

137,533,240

133,213,722

298,816,545

294,497,026

Valuation and translation adjustments
Deferred gains or losses on hedges（33,897 ）（12,202 ）Total valuation and translation adjustments（33,897 ）（12,202 ）Total net assets*1

Total liabilities and net assets

298,782,647
579,931,111

The accompanying notes are an integral part of these financial statements.

－

32 －

*1

294,484,824
570,999,401

(2) Statement of Income and Retained Earnings(Thousands of yen)
15th Fiscal Period

16th Fiscal Period(From November 1, 2021

(From May 1, 2022

to April 30, 2022)

to October 31, 2022)

Rent revenue – real estate*1

14,355,305*1

14,623,738

Other lease business revenue*1

401,481*1

459,098

Gain on sale of real estate properties－*2

710,583

Gain on investments in silent partnership

－

3,650

14,756,787

15,797,070

Operating revenue

Total operating revenue
Operating expenses
Expenses related to rent business*1

5,892,357*1

6,275,960

Asset management fees

910,076

1,021,403

Asset custody fees

10,387

10,679Administrative service fees

48,10049,974

Directors’ compensation

3,600

3,600

Provision of allowance for doubtful accounts

－

1,693

Bad debt expenses

154－

Other operating expenses

266,172

355,107

Total operating expenses

7,130,848

7,718,418

7,625,938

8,078,652

Interest income

160

131

Reversal of distribution payable

693

588

Interest on refund－

539

Reversal of allowance for doubtful accounts

892

－

1,745

1,258

Interest expenses

609,966

639,740

Interest expenses on investment corporation bonds

77,431

76,266

Borrowing related expenses

124,916

122,424

Amortization of investment unit issuance costs

51,013

15,502

Amortization of investment corporation bond issuance costs

15,183

13,860

Other

2,924

7,001

881,435

874,796

Ordinary income

6,746,248

7,205,115

Income before income taxes

Operating income
Non-operating income

Total non-operating income
Non-operating expenses

Total non-operating expenses

6,746,248

7,205,115

Income taxes – current

605

605

Total income taxes

605

605

Net income

6,745,643

7,204,510

Unappropriated retained earnings

6,745,643

7,204,510

The accompanying notes are an integral part of these financial statements.

－

33 －

(3) Statement of Changes in Net Assets
15th Fiscal Period (From November 1, 2021 to April 30, 2022)(Thousands of yen)
Unitholders’ equity
Surplus
Voluntary reserve

Unitholders’capitalBalance at beginning of period

Reserve forReserve for special accountreduction entry for reduction
entry

Capitalsurplus149,210,081 128,598,415

726,488－

Reserve fortemporarydifference
adjustments

Total voluntary
reserve

675,138

1,401,626

Changes of items during period
Issuance of new investment units

12,073,223

Reversal of reserve for reduction
entry
Provision of reserve for special
account for reduction entry
Reversal of reserve for temporary
difference adjustments(337,690)(337,690)
1,195,848

1,195,848(70,602)(70,602)

Distribution from surplus
Net income
Net changes of items other thanunitholders’ equity
Total changes of items during
periodBalance at end of period

12,073,223－(337,690)

1,195,848(70,602)787,555*161,283,304 128,598,415

388,798

1,195,848

604,535

2,189,182(Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus
Unappropriatedretainedearnings
Balance at beginning of period

Totalunitholders’equityTotal
surplus8,520,020 138,520,062

287,730,143

Total valuation
Deferred gains
and translation
or losses on
adjustments
hedges(87,376)(87,376)

Total
net assets

287,642,766

Changes of items during period
Issuance of new investment units

12,073,223

12,073,223

Reversal of reserve for reduction
entry
Provision of reserve for special
account for reduction entry
Reversal of reserve for temporary
difference adjustments

337,690－－－(1,195,848)

－

－

－

70,602－－－Distribution from surplus(7,732,464) (7,732,464)(7,732,464)(7,732,464)

Net income

6,745,643

6,745,643

6,745,643

Net changes of items other thanunitholders’ equity
Total changes of items during
periodBalance at end of period(1,774,377)

6,745,643

53,47953,47953,479(986,821)

11,086,401

53,47953,479

11,139,880

6,745,643 137,533,240

298,816,545(33,897)(33,897)298,782,647

－

34 －

16th Fiscal Period (From May 1, 2022 to October 31, 2022)(Thousands of yen)
Unitholders’ equity
SurplusCapitalsurplus
Unitholders’capitalBalance at beginning of period

161,283,304

Voluntary reserve
Reserve for
specialCapitalReserve foraccount forsurplus, net reduction entry
reduction
entry

Deductionfrom capitalsurplusCapitalsurplus128,598,415－

128,598,415

388,798

Changes of items during period
Reversal of reserve for special
account for reduction entry
Provision of reserve for
reduction entry
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments

1,195,848

Reserve fortemporarydifference
adjustments
604,535(1,195,848)
1,195,848(590,923)(187,497)

Distribution from surplus
Net income
Acquisition of own investment
units
Cancellation of own
investment units
Net changes of items other thanunitholders’ equity
Total changes of items during－
periodBalance at end of period*161,283,304(3,999,964)(3,999,964)－ (3,999,964)(3,999,964)

604,924 (1,195,848)

128,598,415 (3,999,964)

124,598,450

993,722－

Balance at beginning of period
Changes of items during period
Reversal of reserve for special
account for reduction entry
Provision of reserve for
reduction entry
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments
Distribution from surplus
Net income
Acquisition of own investment
units
Cancellation of own
investment units
Net changes of items other thanunitholders’ equity
Total changes of items during
periodBalance at end of period

Total
surplus137,533,240

Own
investment
units

Total
unitholders’equityDeferred
Total valuation
gains
and translation
or losses
adjustmentson hedges－

298,816,545(33,897)(33,897)

21,695

21,695(1,195,848)

1,195,848－－

1,195,848(1,195,848)－－(590,923)

590,923－－(187,497)

187,497－－(7,524,063)
7,204,510(7,524,063)
7,204,510(7,524,063)
7,204,510(3,999,964)

417,038

Valuation and translation
adjustments

Unitholders’ equity
Surplus
Voluntary
reserve
UnappropriatedTotal voluntary retained earnings
reserve
2,189,182
6,745,643(187,497)(3,999,964)(3,999,964)

3,999,964－(778,420)

458,867(4,319,518)－(4,319,518)

21,695

21,6951,410,761

7,204,510

133,213,722－

294,497,026(12,202)(12,202)－35 －(Thousands of yen)Total
net assets
Balance at beginning of period
Changes of items during period
Reversal of reserve for special
account for reduction entry
Provision of reserve for reduction
entry
Reversal of reserve for
reduction entry
Reversal of reserve fortemporary difference
adjustments
Distribution from surplus
Net income
Acquisition of own investment
units
Cancellation of own investment
units
Net changes of items other thanunitholders’ equity
Total changes of items during
periodBalance at end of period

298,782,647－－－－(7,524,063)
7,204,510(3,999,964)－
21,695(4,297,823)
294,484,824

The accompanying notes are an integral part of these financial statements.

－

36 －

(4) Statement of Cash Distributions
15th Fiscal Period
Item
Ⅰ.

(From November 1, 2021

16th Fiscal Period(From May 1, 2022

to April 30, 2022)

to October 31, 2022)

Unappropriated retained earnings

Ⅱ. Reversal of voluntary reserve
Reversal of reserve for reduction entry
Reversal of reserve for temporary difference
adjustments
Ⅲ. Cash distributions*

6,745,643,069yen

7,204,510,234yen

590,923,444yen

82,441,009yen

187,497,321yen

222,908,905yen

7,524,063,834yen

7,509,860,148yen[1,698yen ]－yen[1,714yen ]The basic policy is to distribute in

The basic policy is to distribute inexcess of an amount equivalent toexcess of an amount equivalent to

90% of the amount of earnings

90% of the amount of earnings

available for distribution of SHR

available for distribution of SHR

provided in Article 67-15,

provided in Article 67-15,

Paragraph 1 of the Act on Special

Paragraph 1 of the Act on Special

Measures Concerning Taxation as

Measures Concerning Taxation as

set forth in Article 46, Paragraph 1,
Item 2 of the Articles ofset forth in Article 46, Paragraph 1,
Item 2 of the Articles ofIncorporation of SHR.

Incorporation of SHR.

Based on such policy, SHR

Based on such policy, SHR

decided to distributedecided to distribute

7,524,063,834 yen, which is7,509,860,148yen, which is

obtained by adding a reversal of theobtained by adding a reversal of thereserve for temporary difference
adjustments (187,497,321yen) and areserve for temporary difference
adjustments (222,908,905yen) and areversal of the reserve for reduction

reversal of the reserve for reduction

entry (590,923,444 yen) toentry (82,441,009yen) tounappropriated retained earnings, as

unappropriated retained earnings, as

distribution of earnings.

distribution of earnings.

SHR will not distribute cash inexcess of earnings as set forth in
Article 46, Paragraph 2 of the
Articles of Incorporation of SHR.

SHR will not distribute cash inexcess of earnings as set forth in
Article 46, Paragraph 2 of the
Articles of Incorporation of SHR.

[ Cash distributions per unit]
Ⅳ. Retained earnings carried forward
Method for calculating cash distributions

*

－

37 －

－yen

(5) Statement of Cash Flows(Thousands of yen)
15th Fiscal Period

Cash flows from operating activities
Income before income taxes
Depreciation and amortization
Amortization of investment corporation bond issuance costs
Amortization of investment unit issuance costs
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in consumption taxes receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in long-term prepaid expenses
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable – other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease due to sale of property, plant and equipment in trust
Other, net
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Purchase of intangible assets in trust
Purchase of intangible assets
Purchases of investment securities
Payments for lease and guarantee deposits
Proceeds from tenant leasehold and security deposits in trust
Repayments of tenant leasehold and security deposits in trust
Decrease (increase) in other investments
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Redemption of investment corporation bonds
Proceeds from issuance of investment units
Purchase of own investment units
Dividends paid
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
The accompanying notes are an integral part of these financial statements

－

38 －

16th Fiscal Period(From November 1, 2021

(From May 1, 2022

to April 30, 2022)

to October 31, 2022)*

6,746,248
2,490,587
15,18351,013（160 ）
687,397（24,399 ）（156,161 ）（24,812 ）（76,433 ）（128,589 ）（459,575 ）（492,221 ）
8,972－
33,9238,670,970
160（731,910 ）（606 ）

7,205,115
2,574,622
13,86015,502(131 ）
716,007(9,646 ）156,161(40,674 ）
15,990181,951
124,450
678,924
14,73322,309,047(61,136 ）
33,894,779
131(707,296 ）(600 ）

7,938,613

33,187,013（37,539,645 ）－（2,472 ）－－1,027,185（307,660 ）（10,811 ）（36,833,404 ）(10,421,309 ）(3,726,416 ）(420 ）(482,529 ）(728,830 ）
344,981(661,699 ）(18,585 ）(15,694,808 ）

13,700,000－
26,830,000（26,830,000 ）－12,022,819－（7,731,990 ）
17,990,829（10,903,961 ）
38,091,702
27,187,740－(6,000,000 ）
16,000,000(12,400,000 ）(3,000,000 ）－(3,999,964 ）(7,522,876 ）(16,922,840 ）
569,364
27,187,740*

27,757,104

(6) Notes to Financial Statements
1. Organization
Sekisui House Reit, Inc. (“SHR”) is a Japanese real estate investment corporation established in September 2014 under the Act on
Investment Trusts and Investment Corporations of Japan (the “Investment Trust Act”).On December 3, 2014, SHR commenced its
investment operations when it was listed on the Real Estate Investment Trust Securities Market of the Tokyo Stock Exchange, andit acquired three properties (total acquisition cost of 114.3 billion yen) on the same day.
SHR implemented a 2-for-1 split of its investment units with May 1, 2018 as the effective date.
SHR conducted an absorption-type merger with Sekisui House Residential Investment Corporation (“SHI”) as the dissolved
corporation, setting May 1, 2018 as the effective date.
SHR is externally managed by a licensed asset management company, Sekisui House Asset Management, Ltd. (the “AssetManagement Company”).
Sekisui House Asset Management, Ltd., previously called Sekisui House Investment Advisors, Ltd., carried out an absorption -typemerger with Sekisui House Asset Management, Ltd. (the “former SHAM”), which was the asset management company for SHI, on
May 1, 2018, with the Asset Management Company being the surviving company and the former SHAM being the dissolved
company, and changed its company name to the current one.

2. Basis of Presentation
SHR maintains its accounting records and prepares its financial statements in accordance with accounting principles generally
accepted in Japan (“Japanese GAAP”), including provisions set forth in the Financial Instruments and Ex change Act, the Investment
Trust Act, the Companies Act and the related regulations, which are different in certain respects as to the application and d isclosure
requirements of International Financial Reporting Standards.
The accompanying financial statements are basically a translation of the financial statements of SHR, which were prepared inaccordance with Japanese GAAP and were presented in its Securities Report filed with the Kanto Local Finance Bureau. In preparing
the accompanying financial statements, certain reclassifications and modifications have been made to the financial statements issued
domestically in order to present them in a format which is more familiar to readers outside Japan. In addition, the notes to thefinancial statements include certain information which might not be required under Japanese GAAP but is presented herein as
additional information.
SHR’s fiscal period is a six-month period, which ends at the end of April and October of each year.
SHR does not prepare consolidated financial statements as it has no subsidiaries.
Unless otherwise specified, amounts have been rounded down to the nearest thousand yen in the accompanying financial statements
and the notes thereto. As a result, the amounts shown in the financial statemen ts and notes thereto do not necessarily agree with thesum of the individual account balances.

－

39 －

3. Summary of Significant Accounting Policies
1. Standards and methods forvaluation of assets

Securities
Other securities
Silent partnership equity interests
The amount equivalent to the share of the net profit or loss of the silent partnershipwill be incorporated.

2. Method of depreciation andamortization of non-current assets(1)Property, plant and equipment (including assets in trust)
Depreciation is calculated using the straight-line method.
The useful lives of principal property, plant and equipment are as follows:
Buildings
3-69 years
Structures
6-52 years
Machinery and equipment
8-61 years
Tools, furniture and fixtures 2-15 years(2)Intangible assets
Intangible assets are amortized utilizing the straight-line method.
Leasehold rights in trust are amortized on a straight-line basis over the remaining life of each
fixed-term land lease contract.
(3)Long-term prepaid expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
3. Accounting for deferred assets(1) Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized utilizing the straight-line method
over the redemption periods.
(2) Investment unit issuance costs
Investment unit issuance costs are amortized utilizing the straight-line method (over 3 years).
4. Standards for recording allowance Allowance for doubtful accounts
To prepare for possible losses arising from default on receivables, the estimateduncollectable amount is recorded by examining collectability on a case-by-case basis for
doubtful and other specific receivables.
5. Standards for revenue and expense (1)Revenue recognition
The details of the main performance obligations relating to revenue arising from contracts
recognition
with customers and the timing (usual timing of revenue recognition) when such performanceobligations are satisfied are as follows.
1) Sale of real estate, etc.
With regard to the sale of real estate, etc., income is calculated based on when the buyer
gains control over the real estate, etc., at the point in time the delivery obligation stipulated
in the contract relating to the sale of the real estate is satisfied.
2) Utilities revenue
Utilities revenue mainly represents water utility revenue. With regard to water utility
revenue, revenue is calculated based on the provision of electricity, water, etc. to lessees,as customers, under lease contracts for real estate, etc., and the agreements that are
attached to the contracts.
As for the water utility revenue when SHR is deemed to be acting as an agent in thetransaction, revenue is recognized at the net amount after deducting the amount to be paid
to other parties from the amount received as the payment for electricity, gas, etc. suppliedby those other parties.
Rent revenue

SHR generally recognizes rent revenue, including fixed rent
revenues, variable rent revenues and common area charges, onan accrual basis over the term of each lease agreement.
Other lease business
Other lease business revenue is recognized in accordance withrevenue
Japanese GAAP, typically as the amounts under the relevant
agreements become due.
(2)Accounting for property taxes
In accounting for property tax, city planning tax, depreciable asset tax, etc. on real estate,etc., of the tax amount assessed and determined, the amount corresponding to the applicablecalculation period is expensed as expenses related to rent business.
Reimbursement of property tax, paid to the seller upon the acquisition of real estate or trust
beneficiary interests of real estate as assets in trust, is not recognized as expenses related torent business in the corresponding fiscal period but included in the acquisition cost of theproperty.
Property taxes capitalized as a part of the acquisition cost amounted to 54,790 thousand yen
for the 16th fiscal period and 12,201 thousand yen for the 15th fiscal period.
－

40 －6. Method of hedge accounting

7.

Scope of funds in the statement ofcash flows

8.

Other significant matters serving
as basis for preparationof financial statements(1)Method of hedge accounting
Deferral hedge accounting is applied. However, the special accounting treatment is applied
to interest rate swaps that meet the criteria for the special accounting treatment.
(2)Hedging instruments and hedged items
Hedging instruments:
Interest rate swap transactions
Hedged items:
Interest on loans(3)Hedging policy
SHR conducts derivative transactions for the purpose of hedging the risks set forth in its
Articles of Incorporation based on its basic risk man agement policy.
(4)Method for assessing the effectiveness of hedging
Interest rate swaps meet the criteria for the special accounting treatment and an assessmentof the effectiveness is thus omitted.
(5)Special accounting treatment
Under the special accounting treatment, interest rate swaps are not measured at fair value,
but the differential paid or received under the swap agreements is recognized and included
in or deducted from interest expense. Any amounts received under interest rate swaps subject
to such accounting treatment are not recognized as income on the accompanying statements
of income and retained earnings but rather have the effect of decreasing interest expenses.
The funds (cash and cash equivalents) in the statement of cash flows consist of cash on hand andcash in trust; deposits that can be withdrawn at any time and deposits in trust; and short-term
investments with a maturity of three months or less from the date of acqu isition, which are readily
convertible to cash and bear only an insignificant risk of price fluctuation.
Accounting for trust beneficiary interests of real estate, etc. as assets in trust
Concerning trust beneficiary interests of real estate, etc. as assets in trust, all accounts ofassets and liabilities within assets in trust as well as all accounts of revenue and expenses
from the assets in trust are recognized in the relevant account items on the balance sheet andthe statement of income and retained earnings.
The following material items of the assets in trust recognized in the relevant account items
are separately listed on the balance sheet.
1) Cash and deposits in trust2) Buildings in trust; Structures in trust; Machinery and equipment in trust; Tools, furnitureand fixtures in trust; Land in trust; Construction in progress in trust; Leasehold rights intrust3) Tenant leasehold and security deposits in trust

－

41 －

4. Notes to Balance Sheet*1. Minimum net assets designated in Article 67-4 of the Investment Trust Act(Thousands of yen)
15th Fiscal Period(As of April 30, 2022)

16th Fiscal Period(As of October 31, 2022)
50,00050,0002. Commitment line agreement
SHR has entered into a commitment line agreement with three financial institutions in order to secure flexible
and stable financing.
(Thousands of yen)
15th Fiscal Period(As of April 30, 2022)
Total amount of commitment line

15,000,000

15,000,000－－

15,000,000

15,000,000

Balance executed as loans
Unused line of credit

16th Fiscal Period(As of October 31, 2022)*3. Status of cancellation of own investment units
15th Fiscal Period(As of April 30, 2022)

16th Fiscal Period(As of October 31, 2022)

Total number of units cancelled－

49,651 units

Total amount cancelled－

3,999,964 thousand yen*4. Matters concerning accounting for reserve and reversal of reserve for temporary difference adjustments(Thousands of yen)
15th Fiscal Period(As of April 30, 2022)

16th Fiscal Period(As of October 31, 2022)

Gain on negative goodwill (*)
Initial amount

1,556,827

1,556,827

Balance at beginning of period

675,138

604,535

Reserve amount during period－－

Reversal amount during period

70,602

187,497

Balance at end of period

604,535

417,038

Appropriated for
distributions

Appropriated for
distributions

Reason for reserve and reversal(*) Reserve of a part of gain on negative goodwill that arose in the previous fiscal period; SHR plans to drawdown at least 1 % of
the reserve for each fiscal period (corresponding to the amount of the reserve expensed equally over 50 years) and appropriate
the amount for cash distributions, starting from the fiscal period following the fiscal period in which the reserve was made.

－

42 －

5. Notes to Statement of Income and Retained Earnings*1. Breakdown of property-related operating revenue and expenses(Thousands of yen)
15th Fiscal Period(From November 1, 2021
to April 30, 2022)
A.

16th Fiscal Period(From May 1, 2022
to October 31, 2022)

Property-related operating revenue
Rent revenue – real estate
Rental income

14,008,141

Other

347,164

14,263,700
14,355,305

360,038

14,623,738

Other lease business revenue
Utilities revenue

180,119

Other

221,361

Total property-related operating revenueB.

241,565
401,481217,532

14,756,787

459,098
15,082,836

Property-related operating expenses
Expenses related to rent businessSubcontract expenses

569,716

597,696

Property management fees

468,688

470,667

Trust fees

44,24843,221

Utilities expenses
Property and other taxes
Insurance expenses
Repair expenses
Depreciation
Other expenses related to rent businessC.

311,649

391,838

1,017,039

1,065,322

17,407
336,792

18,820390,295

2,489,720

2,573,621

637,094

5,892,357

724,475

6,275,960

Total property-related operating expenses

5,892,357

6,275,960

Property-related operating income [A − B]

8,864,429

8,806,876*2. Breakdown of gain on sale of real estate properties
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
16th Fiscal Period (From May 1, 2022 to October 31, 2022)(Thousands of yen)
The Ritz-Carlton, Kyoto
Proceeds from sale of real estate property

23,000,000

Cost of real estate property

22,288,419
996

Other sales expenses
Gain on sale of real estate property

710,583

6. Notes to Statement of Changes in Net Assets*Total number of authorized investment units and total number of investment units issued
15th Fiscal Period(From November 1, 2021
to April 30, 2022)

16th Fiscal Period(From May 1, 2022
to October 31, 2022)

Total number of authorized investment units

20,000,000units

20,000,000units

Total number of investment units issued

4,431,133units

4,381,482units

－

43 －

7. Notes to Statement of Cash Distributions*Reserve for temporary difference adjustments
15th Fiscal Period(From November 1, 2021
to April 30, 2022)

16th Fiscal Period(From May 1, 2022
to October 31, 2022)

With regard to the reserve for temporary difference
adjustments, SHR plans to drawdown at least 1% of theWith regard to the reserve for temporary difference
adjustments, SHR plans to drawdown at least 1% of thereserve for each fiscal period (corresponding to the amountreserve for each fiscal period (corresponding to the amountof the reserve expensed equally over 50 years) andof the reserve expensed equally over 50 years) andappropriate the amount for cash distributions, starting fromappropriate the amount for cash distributions, starting fromthe fiscal period following the fiscal period in which thethe fiscal period following the fiscal period in which thereserve was made. SHR decided to drawdown 187,497,321

reserve was made. SHR decided to drawdown 222,908,905

yen for the 15th fiscal period.

yen for the 16th fiscal period.

8. Notes to Statement of Cash Flows*Reconciliation of cash and cash equivalents at end of period to the corresponding balance sheet items(Thousands of yen)
15th Fiscal Period(From November 1, 2021
to April 30, 2022)

16th Fiscal Period(From May 1, 2022
to October 31, 2022)

Cash and deposits

11,154,608

11,416,266

Cash and deposits in trust

16,033,132

16,340,838

Cash and cash equivalents

27,187,740

27,757,104

9. Lease Transactions
Operating lease transactions as lessee
Future minimum lease payments(Thousands of yen)
15th Fiscal Period(As of April 30, 2022)

16th Fiscal Period(As of October 31, 2022)

Due within 1 year

418,944

777,936

Due after 1 year

19,587,867

41,449,423

20,006,811

42,227,359

Total
Operating lease transactions as lessor
Future minimum lease income(Thousands of yen)
15th Fiscal Period(As of April 30, 2022)

16th Fiscal Period(As of October 31, 2022)

Due within 1 year

8,687,998

11,245,203

Due after 1 year

30,148,623

29,814,333

38,836,622

41,059,536

Total

－

44 －

10. Financial Instruments
1. Status of financial instruments(1) Policy for financial instruments
Making it a policy to conduct stable and sound financial operations that would contribute to steady growth of its investment
assets as well as efficient management and stability of management, SHR shall procure funds through borrowings or theissuance of investment corporation bonds for the purpo ses of utilizing such funds for the acquisition of assets, payments ofrepair expenses or distributions, operations of SHR, repayment of obligations or other.
For derivative transactions, the policy is that derivative transactions shall be limited to those for the purpose of hedging therisk of fluctuations in interest rates on liabilities and foreign currency risk in the case of overseas real estate investmen ts, andthat no speculative transactions shall be conducted.
(2) Description of financial instruments and associated risks, and risk management structure
The funds procured through borrowings shall be used mainly for the acquisition of investment assets and for repayment ofloans.
The availability and terms and conditions of borrowings and the issuance of investment corporation bonds may be affectedby SHR’s financial creditworthiness, the interest rate situation and other factors, and there is thus no guarantee that funds canbe procured at SHR’s desired timing and terms and conditions. Further more, loans with floating interest rates are susceptible
to subsequent market trends.
SHR manages and limits the liquidity risk and the risk of fluctuations in interest rates associated with such fund procurement
by diversifying fund procurement sources and means and by maintaining the ratio of interest-bearing liabilities to total assets
and the ratio of floating-rate loans to total loans at appropriate levels. Furthermore, for certain loans with floating interest
rates, derivative transactions (interest rate swap transactions) are used as a hedging instrument for hedging the risk offluctuations in interest rates based on rules that set forth the basic policy for handling derivative transactions and risk
management. Investment securities are investments in TK (tokumei kumiai) and are exposed to the credit risk of the issuer
and the risk of fluctuations in the value of real estate, etc.
(3) Supplementary explanation of matters concerning fair value of financial instruments
As the calculations involve variable factors, there may be cases where the corresponding values will vary when different
assumptions are adopted. In addition, the contract amounts of derivative transactions in “2. Matters concerning fair value offinancial instruments” do not represent the market risk involved in the derivative transactions.
2. Matters concerning fair value of financial instruments
The carrying amount and fair value of financial instruments as of April 30, 2022 and October 31, 2022, and the difference
between them are as follows.

15th Fiscal Period (As of April 30, 2022)
Information on “Cash and deposits,” “Cash and deposits in trust,” and “Short-term loans payable” is omitted as these are settled
within a short period of time, thus the fair value approximates the book value. Also, as “Tenant leasehold and security deposits
in trust” are immaterial, related notes are omitted.
(Thousands of yen)Book value recordedon the balance sheet

Fair value

Difference(1) Current portion of investment corporation bonds

3,000,000

2,999,400(600)(2) Current portion of long-term loans payable

23,500,000

23,515,516

15,516(3) Investment corporation bonds

31,500,000

31,419,572(80,427)(4) Long-term loans payable

191,942,000

191,807,694(134,305)

249,942,000

249,742,183(199,816)(33,897)(33,897)－(33,897)(33,897)－

Total liabilities(5) Derivative transactions (*)
Total derivative transactions (*)(*) Amounts arising from derivative transactions are shown on a net basis with any amounts inside square parentheses ( )indicating a net liability position.

－

45 －

(Note 1) Method of calculating the fair value of financial instruments(1) Current portion of investment corporation bonds (3) Investment corporation bonds
The fair value of investment corporation bonds is based on the quoted market price.
Of the investment corporation bonds issued by SHR, the fair value of those with a market price is based on the quoted
market price. For those where it is difficult to obtain the fair value based on the quoted market price, the fair value is ba sedon the method of calculating by discounting the combined total of principal and interest by a reasonably estimated interest
rate applicable when conducting similar fund procurement for the remaining period of the bonds.
(2) Current portion of long-term loans payable (4) Long-term loans payable
As the long-term loans payable with floating interest rates reflect interest rate changes within a short period of time, thefair value is approximately the same as the book value and is thus stated at that book value (provided, however, that for
long-term loans payable with floating interest rates that qualify for the special accounting treatment of interest rate swaps(please refer to “12. Derivative Transactions”), the fair value is based on the method of calculation in which the sum total
amount of principal and interest accounted for with the interest rate swap is discounted by the rate assumed in the event ofa similar new drawdown). In addition, for those with fixed interest rates, the fair value is based on the method of calculationin which the sum total amount of principal and interest is discounted by the rate assumed in the event of a similar new
drawdown corresponding to the remaining period.
(5)Derivative transactions
Please refer to “12. Derivative Transactions”.
16th Fiscal Period (As of October 31, 2022)
Investments in TK (tokumei kumiai) real estate equity interest (Note 3) are not included in the table below.
Information on “Cash and deposits,” “Cash and deposits in trust,” and “Short-term loans payable” is omitted as these are settled
within a short period of time, thus the fair value approximates the book value. Also, as “Tenant leasehold and security depos its
in trust” are immaterial, related notes are omitted.
(Thousands of yen)Book value recordedon the balance sheet(1) Current portion of investment corporation bonds

Fair value

Difference

－

－

－

(2) Current portion of long-term loans payable

31,310,000

31,316,902

6,902(3) Investment corporation bonds

31,500,000

31,306,127(193,872)(4) Long-term loans payable

187,732,000

187,048,027(683,972)

250,542,000

249,671,057(870,942)(12,202)(12,202)－(12,202)(12,202)－

Total liabilities(5) Derivative transactions (*)
Total derivative transactions (*)(*) Amounts arising from derivative transactions are shown on a net basis with any amounts inside square parentheses ( )indicating a net liability position.
(Note 1) Method of calculating the fair value of financial instruments(1) Current portion of investment corporation bonds (3) Investment corporation bonds
The fair value of investment corporation bonds is based on the quoted market price.
Of the investment corporation bonds issued by SHR, the fair value of those with a market price is based on the quoted
market price. For those where it is difficult to obtain the fair value based on the quoted market price, the fair value is ba sedon the method of calculating by discounting the combined total of principal and interest by a reasonably estimated interest
rate applicable when conducting similar fund procurement for the remaining period of the bonds.
(2) Current portion of long-term loans payable (4) Long-term loans payable
As the long-term loans payable with floating interest rates reflect interest rate changes within a short period of time, thefair value is approximately the same as the book value and is thus stated at that book value (provided, however, that for
long-term loans payable with floating interest rates that qualify for the special accounting treatment of interest rate swaps(please refer to “12. Derivative Transactions”), the fair value is based on the method of calculation in which the sum total
amount of principal and interest accounted for with the interest rate swap is discounted by the rate assumed in the event ofa similar new drawdown). In addition, for those with fixed interest rates, the fair value is based on the method of calculationin which the sum total amount of principal and interest is discounted by the rate assumed in the event of a similar new
drawdown corresponding to the remaining period.
(5)Derivative transactions
Please refer to “12. Derivative Transactions”.

－

46 －

(Note 2) Repayment schedule of investment corporation bonds and loans after the closing date
15th Fiscal Period (As of April 30, 2022)(Thousands of yen)
Due after
4 to 5 years
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

Investment corporation bonds

3,000,000

3,000,000

12,000,000

4,000,000

2,000,000

10,500,000

Long-term loans payable

23,500,000

40,050,000

29,505,000

32,543,000

14,737,000

75,107,000

16th Fiscal Period (As of October 31, 2022)
1 to 2 years

2 to 3 years

3 to 4 years－

10,000,000

9,000,000

2,000,000－

10,500,000

31,310,000

35,545,000

34,213,000

25,780,000

21,687,000

70,507,000

Investment corporation bonds
Long-term loans payable(Thousands of yen)
Due after
4 to 5 years
5 years

Due in1 year or less

(Note 3) Investments in TK (tokumei kumiai) real estate equity interest
In accordance with the treatments stipulated in Paragraph 24-16 of “Implementation Guidance on Accounting for Fair Value
Measurement” (ASBJ Guidance No.31, June 17, 2021, Accounting Standards Board of Japan), matters set down on Paragraph4-1 of “Implementation Guidance on Fair Value Measurement of Financial Instrumen ts” (ASBJ Guidance No.19, March 31,2020) has been omitted. The carrying amount on the balance sheet for investments in TK real estate equity interest according
to the above implementation is 486,179 thousand yen.

11. Securities
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.

12. Derivative Transactions
1. Derivatives to which hedge accounting is not applied
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.
2. Derivatives to which hedge accounting is applied
The following is the contract amount or the amount equivalent to the principal provided in the contract as of the closing datefor each method of hedge accounting.

－

47 －

15th Fiscal Period (As of April 30, 2022)(Thousands of yen)
Method ofhedge
accounting

Contract amountType ofderivative transactions

Main hedged
item

Of which,over
1 yearFair value

Calculation
method offair value

Interest rate swap
transaction
Principal
Long-term
Floating interest rate
19,150,000
6,650,000(33,897)*1
methodloans payable
receivable and fixedinterest rate payable
Interest rate swap
Specialtransaction
accounting
Long-term
treatment for
Floating interest rate
122,661,000
115,961,000*2－loans payableinterest ratereceivable and fixedswapsinterest rate payable*1 Fair value is quoted by counterparties based on the prevailing market interest rates.
*2 As derivative transactions qualifying for the special accounting treatment for interest rate swaps are accounted for with thehedged long-term loans payable, the fair value is included in the fair value of the underlying long -term loans payable (pleaserefer to “ 10. Financial Instruments; 2. Matters concerning fair value of financial instruments (Note 1)”).
16th Fiscal Period (As of October 31, 2022)(Thousands of yen)
Method ofhedge
accounting

Contract amountType ofderivative transactions

Main hedged
item

Of which,over
1 yearFair value

Calculation
method offair value

Interest rate swap
transaction
Principal
Long-term
Floating interest rate
13,750,000
4,750,000(12,202)*1
methodloans payable
receivable and fixedinterest rate payable
Interest rate swap
Specialaccounting
transaction
Long-term
treatment for－
Floating interest rate
117,611,000
103,301,000*2loans payableinterest ratereceivable and fixedswapsinterest rate payable*1 Fair value is quoted by counterparties based on the prevailing market interest rates.
*2 As derivative transactions qualifying for the special accounting treatment for interest rate swaps are accounted for with thehedged long-term loans payable, the fair value is included in the fair value of the underlying long-term loans payable (pleaserefer to “ 10. Financial Instruments; 2. Matters concerning fair value of financial instruments (Note 1)”).

13. Retirement Benefits
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.

－

48 －

14. Income Taxes
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause(Thousands of yen)
15th Fiscal Period(As of April 30, 2022)

16th Fiscal Period(As of October 31, 2022)

1,518,552

1,498,036

Amortization of leasehold rights in trust

54,45965,937

Deferred gains or losses on hedges

10,664

3,838

Deferred tax assets (subtotal)

1,583,676

1,567,813

Valuation allowance for total deductible temporary difference(1,583,676)(1,567,813)

－

－

－

－

Deferred tax assets
Valuation difference on assets acquired due to merger

Total deferred tax assets
Net deferred tax assets

2. Breakdown of major items that caused significant differences between the statutory tax rate and the effective income tax rate
after application of tax-effect accounting(%)
15th Fiscal Period(As of April 30, 2022)

16th Fiscal Period(As of October 31, 2022)

31.46

31.46

（35.09）（32.79）Changes in valuation allowance

0.88

0.96

Reversal of reserve for reduction entry

2.76

0.36

Other

0.00

0.02

0.01

0.01

Statutory tax rate
[Adjustments]
Deductible cash distribution

Effective income tax rate after application of tax-effect accounting

15. Profit or Loss of Affiliates Accounted for Under the Equity Method
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.

－

49 －

16. Transactions with Related Parties
1. Parent company and major corporate unitholders.
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.
2. Subsidiaries and affiliates.
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.
3. Sister companies.
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.
4. Directors and major individual unitholders.
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.

17. Revenue Recognition
1. Breakdown of revenue from contracts with customers
15th Fiscal Period (From November 1, 2021 to April 30, 2022)(Thousands of yen)
Revenue from contracts
with customers *1

Net sales to external customers－

Sale of real estate, etc.
Utilities revenue
Other

*2

－

180,119

180,119－

14,576,667

180,119
14,756,787
Total
Rental revenue, etc. subject to ASBJ Statement No. 13, “Accounting Standard for Lease Transactions” is not included in“Revenue from Contracts with Customers” because such revenue is excluded from the application of the revenue recognition
standard. Revenues from contracts with major customers consist of revenues from the sale of real estate and other assets andutilities revenue.
*2 Regarding the sale of real estate, etc., in accordance with Article 48, Paragraph 2 of the Regulations on Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 47, 2006), gain on the sale of real estate properties, etc. is shown inthe statement of income and retained earnings after deducting cost of real estate property and direct sales expenses from theproceeds from the sale of real estate, etc.
*1

－

50 －

16th Fiscal Period (From May 1, 2022 to October 31, 2022)(Thousands of yen)
Revenue from contracts
with customers *1

Net sales to external customers

23,000,000

Sale of real estate, etc.
Utilities revenue*2710,583

241,565

241,565－

14,844,921

Other

23,241,565
15,797,070
Total*1 Rental revenue, etc. subject to ASBJ Statement No. 13, “Accounting Standard for Lease Transactions” is not included in“Revenue from Contracts with Customers” because such revenue is excluded from the application of the revenue recognition
standard. Revenues from contracts with major customers consist of revenues from the sale of real estate and other assets andutilities revenue.
*2 Regarding the sale of real estate, etc., in accordance with Article 48, Paragraph 2 of the Regulations on Accounting ofInvestment Corporations (Cabinet Office Ordinance No. 47, 2006), gain on the sale of real estate properties, etc. is shown inthe statement of income and retained earnings after deducting cost of real estate property and direct sales expenses from theproceeds from the sale of real estate, etc.
2. Information to understand revenue from contracts with customers
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
As stated in “3. Summary of Significant Accounting Policies”
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
As stated in “3. Summary of Significant Accounting Policies”
3. Information on the relationship between performance obligations under contracts with customers and cash flows resulting fromsuch contracts, and the amount and timing of proceeds expected to be recognized in the next fiscal period or thereafter fromcontracts with customers existing at the end of this fiscal period(1) Balance of contract assets and contract liabilities, etc.
15th Fiscal Period(From November 1, 2021
to April 30, 2022)(Thousands of yen)
16th Fiscal Period(From May 1, 2022
to October 31, 2022)

40,544

43,843

43,84355,312

－

－

－

－

－

－

－

－

Claims arising from contracts with customers(Balance at beginning of period)
Claims arising from contracts with customers(Balance at end of period)
Contract assets(Balance at beginning of period)
Contract assets(Balance at end of period)
Contract liabilities(Balance at beginning of period)
Contract liabilities(Balance at end of period)(2) Transaction prices allocated to the remaining performance obligations

With regard to utilities revenue, SHR recognizes proceeds in the amount that SHR has the right to claim in accordancewith Clause 19 of the Accounting Standard for Revenue Recognition, because SHR has the right to receive from the lessee,as the customer, an amount of compensation directly corresponding to the value of the items provided up to the end of the
fiscal period.
Accordingly, SHR applies the provisions of Clause 80 -22(2) of Accounting Standard for Revenue Recognition and does
not include related information in the notes on transaction prices allocated to the remaining performance obligations.

－

51 －

18. Asset Retirement Obligations
15th Fiscal Period (From November 1, 2021 to April 30, 2022)
Not applicable.
16th Fiscal Period (From May 1, 2022 to October 31, 2022)
Not applicable.

19. Investment and Rental Properties
SHR owns rental office buildings, etc. in Tokyo and other areas for the purpose of earning revenue from leasing. The following is
the carrying amount, amount of increase (decrease) during the period and fair value of these investment and rental properties .
15th Fiscal Period(From November 1, 2021
to April 30, 2022)(Thousands of yen)
16th Fiscal Period(From May 1, 2022
to October 31, 2022)

Balance at beginning of period

515,206,980

550,137,107

Amount of increase (decrease) during period

34,930,127(10,410,480)

Balance at end of period

550,137,107

539,726,627

647,973,000

643,093,000

Carrying amount

Fair value at end of period(Note 1) Carrying amount is the book value less accumulated depreciation.
(Note 2) Net increase during the 15th fiscal period is mainly attributable to the acquisition of 3 new properties (36,721,421 thousandyen), offset by depreciation (2,489,720 thousand yen). Net increase during the 16th fiscal period is mainly attributable tothe acquisition of 2 new properties (13,496,575 thousand yen), offset by a decrease during the perio d mainly attributable
to the disposition of a property (22,085,268 thousand yen) that SHR had owned and depreciation (2,573,621 thousand yen).
(Note 3) Fair value at the end of the period is the appraisal value by outside real estate appraisers.
The property-related operating income in the 15th and 16th fiscal periods for investment and rental properties is presented in “5.
Notes to Statement of Income and Retained Earnings”.

20. Segment Information
1. Segment information
Segment information is omitted because SHR operates a single segment, which is the real estate leasing business.
2. Related information
15th Fiscal Period (From November 1, 2021 to April 30, 2022)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single products andservices category are in excess of 90% of operating revenue on the statement of income and retained earnings.
(2) Information about geographic areas
1) Operating revenue
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of operating
revenue on the statement of income and retained earnings.
2) Property, plant and equipment
Information about property, plant and equipment is omitted because the property, plant and equipment located in Japanis in excess of 90% of property, plant and equipment on the balance sheet.
(3) Information about major customers(Thousands of yen)
Name of customer

Operating revenue

Sekisui House, Ltd.

1,363,547－

52 －Name of related segment
Real estate leasing business16th Fiscal Period (From May 1, 2022 to October 31, 2022)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single products andservices category are in excess of 90% of operating revenue on the statement of income and retained earnings.
(2) Information about geographic areas
1) Operating revenue
Information about net sales is omitted because net sales to external customers in Japan are in excess of 90% of operating
revenue on the statement of income and retained earnings.
2) Property, plant and equipment
Information about property, plant and equipment is omitted because the property, plant and equipment located in Japanis in excess of 90% of property, plant and equipment on the balance sheet.
(3) Information about major customers(Thousands of yen)
Name of customer

Operating revenue

Sekisui House, Ltd.

Name of related segment

1,363,547

Real estate leasing business

21. Per Unit Information
15th Fiscal Period(From November 1, 2021
to April 30, 2022)

16th Fiscal Period(From May 1, 2022
to October 31, 2022)

Net assets per unit

67,428yen

67,211yen

Net income per unit

1,522yen

1,636yen(Note 1) Net income per unit is calculated by dividing net income by the daily weighted average number of investment units.
In addition, diluted net income per unit is not stated because there are no dilutive investment units.
The following is the basis for calculating net income per unit.
15th Fiscal Period(From November 1, 2021
to April 30, 2022)
Net income (Thousands of yen)Amount not attributable to common unitholders(Thousands of yen)
Net income attributable to common investment units(Thousands of yen)
Average number of investment units during period (Units)

22. Significant Subsequent Events
Not Applicable

－

53 －

16th Fiscal Period(From May 1, 2022
to October 31, 2022)

6,745,643

7,204,510－－

6,745,643

7,204,510

4,430,365

4,402,287

(7) Supplementary Schedules
16th Fiscal Period（From May 1, 2022 to October 31, 2022）
1. Schedule of securities(1) Shares
Not applicable.
(2) Securities other than shares(Thousands of yen)Type

Brand Name

TK (tokumei
kumiai) equity
interest

Face
value

Book
value

480,000

486,179

Accruedinterest

Prepaid
accruedinterest

Valuation*1

Valuation
profit/loss

Remarks－－

486,179－－

TK (tokumei kumiai)real estate equity
interest in Gemini1
GK TK

－
－
－
－
Total
480,000
486,179
486,179*1“Valuation” is the book value.
*2 Asset management refers to silent partnerships 34.55% quasi co-ownership interest of the trust beneficiary interest in real estate
regarding the compartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor underground through4th floor above ground and 11th floor through 19th floor above ground of the “Akasaka Garden City” building, as well as theaccompanying right of site (ratio of right of site: 662,768/1,000,000 (or approximately 66.3%)), and has not yet been acquired
by SHR.

2. Contract amount and fair value of derivative transactions(Thousands of yen)Contract amount (*1)
Category

Transaction other thanmarket transaction
Transaction other thanmarket transaction

Type

Of which,over 1 year

Interest rate swap transaction
Floating interest rate receivable andfixed interest rate payable
Interest rate swap transaction
Floating interest rate receivable andfixed interest rate payable
Total

13,750,000

4,750,000

117,611,000

103,301,000

131,361,000

108,051,000

Fair value(*2)（12,202）－(*3)（12,202）*1 The contract amount of interest rate swap transactions is based on the notional principal amount.
*2 Fair value is quoted by counterparties based on the prevailing market interest rates.
*3 The fair value is omitted because the transaction meets the criteria for the special accounting treatment under the AccountingStandards for Financial Instruments.

－

54 －

3. Schedule of property, plant and equipment and intangible assets(Thousands of yen)Type of assets

Buildings

Balanceat beginningof period

Amount ofAmount ofincreasedecreaseduring period during period

Balanceat end ofperiodAccumulated depreciationoraccumulated
amortization

For the period

Net balanceat end of period

180,182,133

8,669,133

4,209,730

184,641,536

23,440,710

2,375,866

161,200,826

1,587,002

40,266

7,194

1,620,073

333,254

32,113

1,286,818

2,424,138

28,35865,4492,387,047

433,368

56,2601,953,678

153

ー

153

ー

ー

ー

ー

774,779

125,901

30,656870,024

276,299

69,049593,724

385,124,884

1,658,333

18,126,401

368,656,815

ーー

368,656,815

12,85917,85912,85917,859ーー

17,859570,105,951

10,539,852

22,452,446

558,193,357

24,483,633

2,533,289

533,709,723

2,552,025

3,726,416

ー

6,278,442

243,678

40,272

6,034,763

Other

18,137420902

17,655

14,033

1,061

3,622

Subtotal

2,570,163

3,726,837

902

6,296,097

257,711

41,333

6,038,385

in trust
Structuresin trust

Notes

*1
*2

Machinery andequipment in
trust
Vehicles in
Property,trust

plant andTools,

equipment

furniture andfixtures intrust
Land in trust*1*2

Constructionin progress intrust
Subtotal
Leaseholdrights in trust
Intangible
assetsTotal
572,676,114
14,266,689
22,453,349 564,489,455
24,741,345
2,574,622
539,748,109*1 The increase during the fiscal period under review is mainly attributable to the acquisition of Prime Maison EGOTANOMORI and Prime Maison
Waseda dori.
*2 The decrease during the fiscal period under review is attributable to the disposition of The Ritz Carlton, Kyoto.

4. Schedule of other specified assets
Real estate trust beneficiary interests are included above in “3. Schedule of property, plant and equipment and intangible assets”.

－

55 －

5. Schedule of investment corporation bonds
Name

SHI
Fourth Series
Unsecured Investment
Corporation Bond
SHI
Fifth Series Unsecured
Investment Corporation
Bond
SHRFirst Series Unsecured
Investment Corporation
Bond
SHR
Second Series
Unsecured Investment
Corporation Bond
SHR
Third Series Unsecured
Investment Corporation
Bond(Green Bonds)
SHR
Fourth Series
Unsecured Investment
Corporation Bond
(Green Bonds)
SHR
Fifth Series Unsecured
Investment Corporation
Bond(Green Bonds)
SHR
Sixth Series Unsecured
Investment Corporation
Bond(Green Bonds)
SHR
Seventh Series
Unsecured Investment
Corporation Bond
(Green Bonds)
SHR
Eighth Series
Unsecured Investment
Corporation Bond
(Green Bonds)
SHR
Ninth Series Unsecured
Investment Corporation
Bond(Green Bonds)
Total

Issue date

Balance at
beginning of
period(Thousands ofyen )Amount ofdecrease during
period(Thousands ofyen )Balanceat end of period(Thousands ofyen )Couponrate(%)

Redemption
date

February 28,
2014

3,000,000－

3,000,000

1.069

February 28,2024

August 29,
2014

3,000,000－

3,000,000

0.871

August30,2024

September 8,
2016

2,000,000－

2,000,000

0.340

September 8,
2026

July 13,2017

3,000,000

3,000,000

－

0.240

July 13,
2022

July 11,2019

4,000,000－

4,000,000

0.220

July 11,2024

July 11,2019

2,500,000－

2,500,000

0.570

July 11,2029

November 1,
2019

5,000,000－

5,000,000

0.220

November 1,
2024

February 28,
2020

2,000,000－

2,000,000

0.500

February 28,
2030

September 9,
2020

4,000,000－

4,000,000

0.250

September 9,2025

September 9,
2020

4,000,000－

4,000,000

0.510

September 9,
2030

May 19,2021

2,000,000－

2,000,000

0.460

May 19,2031－

34,500,000

3,000,000

31,500,000－－

Use ofproceeds

Security(Note 1)

Unsecured－－(Note 1) The funds are used to repay borrowings or redemption of existing investment corporation bonds, etc.
(Note 2) These investment corporation bonds are equipped with pari passu clause among specified investment corporation bonds.
(Note 3) The following is the maturity schedule of investment corporation bonds within five years of the balance sheet date.
(Thousands of yen)Due in1 year or less
Investment Corporation Bonds

1 to 2 years
ー

10,000,000

－

56 －

2 to 3 years
9,000,000

3 to 4 years
2,000,000

4 to 5 yearsー6. Schedule of loans payable(Thousands of yen)
category

LenderShort- MUFG Bank, Ltd.
term Mizuho Bank, Ltd.
loans
payable Sumitomo Mitsui Banking
Corporation

Average
BalanceAmount ofAmount ofinterest rate
Balanceat beginning of increase during
decrease(%)
at end of period
periodperiodduring period(Note 1)
5,310,000－

2,330,000

2,980,000

4,360,000－

1,910,000

2,450,000

4,030,000－

1,760,000

2,270,000

MUFG Bank, Ltd.

900,000－

900,000－

Mizuho Bank, Ltd.

2,500,000－

2,500,000－

Sumitomo Mitsui Banking
Corporation

2,000,000－

2,000,000－

MUFG Bank, Ltd.

4,600,000－－

4,600,000

Mizuho Bank, Ltd.

700,000－－

700,000

3,700,000－－

3,700,000

700,000－－

700,000

300,000－－

300,000

1,000,000－－

1,000,000

MUFG Bank, Ltd.

1,300,000－－

1,300,000

Mizuho Bank, Ltd.

1,000,000－－

1,000,000

600,000－－

600,000

300,000－－

300,000

800,000－－

800,000

Resona Bank, Limited

500,000－－

500,000

The Norinchukin Bank

500,000－－

500,000

THE BANK OF FUKUOKA,
LTD.

700,000－－

700,000

Aozora Bank, Ltd.

200,000－－

200,000

Shinkin Central Bank

200,000－－

200,000

200,000－－

200,000

200,000－－

200,000

200,000－－

200,000

The Hiroshima Bank, Ltd.

200,000－－

200,000

The Yamaguchi Bank, Ltd.

200,000－－

200,000

MUFG Bank, Ltd.

700,000－－

700,000

0.88470

Development Bank of Japan
Inc.

650,000－－

650,000

0.88500

Mizuho Bank, Ltd.

350,000－－

350,000

650,000－－

650,000

350,000－－

350,000

Resona Bank, Limited

300,000－－

300,000

MUFG Bank, Ltd.

750,000－－

750,000

MUFG Bank, Ltd.

500,000－－

500,000

Mizuho Bank, Ltd.

400,000－－

400,000

700,000－－

700,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank of JapanInc.
Development Bank of JapanInc.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

The Senshu Ikeda Bank,
Long- Ltd.
term
The Shizuoka Bank, Ltd.
loans
payable The 77 Bank, Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited
Mizuho Bank, Ltd.
Development Bank of JapanInc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.

Repayment
due date

0.24507

Jan. 31, 2023
(Note4)0.96475

Aug. 31, 2022

1.47450

Nov. 30, 2024

0.85250

0.86650

Feb. 28, 2023
(Note3)

UnLump-sum
securedpayment(Note2)
Unat
guaranmaturity
teed

0.86650

Nov. 30, 2022
(Note3)0.89470

1.00850

1.01850
350,000－－

350,000

300,000－－

300,000

100,000－－

100,000

100,000－－

100,000

2,100,000－－

2,100,000

450,000－－

450,000

450,000－－

450,000

1,000,000－－

1,000,000－

57 －Repayment Use of
Security
method proceeds

Nov. 30, 2023

0.67400
Aug. 31, 2023
(Note3)0.68030

category

LenderAverage
BalanceAmount ofAmount ofinterest rate
Balanceat beginning of increase during
decrease(%)
at end of period
periodperiodduring period(Note 1)

MUFG Bank, Ltd.

700,000－－

700,000

Mizuho Bank, Ltd.

1,100,000－－

1,100,000

1,100,000－－

1,100,000

450,000－－

450,000

500,000－－

500,000

Resona Bank, Limited

300,000－－

300,000

The Norinchukin Bank

300,000－－

300,000

Aozora Bank, Ltd.

200,000－－

200,000

The Yamaguchi Bank, Ltd.

100,000－－

100,000

MUFG Bank, Ltd.

450,000－－

450,000

600,000－－

600,000

200,000－－

200,000

Shinkin Central Bank

100,000－－

100,000

The Senshu Ikeda Bank,
Ltd.

100,000－－

100,000

The Shizuoka Bank, Ltd.

100,000－－

100,000

The 77 Bank, Ltd.

100,000－－

100,000

The Hiroshima Bank, Ltd.

100,000－－

100,000

Mizuho Bank, Ltd.

200,000－－

200,000

200,000－－

200,000

400,000－－

400,000

500,000－－

500,000

300,000－－

300,000

300,000－－

300,000

MUFG Bank, Ltd.

600,000－－

600,000

MUFG Bank, Ltd.

1,000,000－－

1,000,000

Mizuho Bank, Ltd.

800,000－－

800,000

800,000－－

800,000

400,000－－

400,000

MUFG Bank, Ltd.

1,810,000－－

1,810,000

MUFG Bank, Ltd.

440,000－－

440,000

Mizuho Bank, Ltd.

900,000－－

900,000

MUFG Bank, Ltd.

600,000－－

600,000

Mizuho Bank, Ltd.

200,000－－

200,000

300,000－－

300,000

600,000－－

600,000

Resona Bank, Limited

400,000－－

400,000

Shinkin Central Bank

300,000－－

300,000

MUFG Bank, Ltd.

1,500,000－－

1,500,000

MUFG Bank, Ltd.

800,000－－

800,000

Mizuho Bank, Ltd.

700,000－－

700,000

1,200,000－－

1,200,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

Development Bank of JapanInc.
THE BANK OF FUKUOKA,LTD.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

Longterm Resona Bank, Limitedloans
payable The Norinchukin Bank

Sumitomo Mitsui Banking
Corporation
Development Bank of JapanInc.

Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

Development Bank of JapanInc.
THE BANK OF FUKUOKA,
LTD.

－

－

500,000

Aozora Bank, Ltd.

300,000－－

300,000

The Yamaguchi Bank, Ltd.

500,000－－

500,000－

58 －Repayment Use of
Security
method proceeds

0.63800

Feb. 29, 2024

0.50500

0.49500

Aug. 30, 2024
UnLump-sum
securedpayment(Note2)
Unat
guaranmaturity
teed

0.57000

0.59750

Aug. 29, 2025

0.60500
Sep. 8, 2026
0.67000
0.61000

0.67000

Feb. 28, 2025

0.72500

0.77880
500,000

Repayment
due dateFeb. 27, 2026

category

LenderAverage
BalanceAmount ofAmount ofinterest rate
Balanceat beginning of increase during
decrease(%)
at end of period
periodperiodduring period(Note 1)

MUFG Bank, Ltd.

990,000－－

990,000

MUFG Bank, Ltd.

260,000－－

260,000

Mizuho Bank, Ltd.

550,000－－

550,000

220,000－－

220,000

220,000－－

220,000

176,000－－

176,000

2,352,000－－

2,352,000

MUFG Bank, Ltd.

750,000－

750,000－

Mizuho Bank, Ltd.

1,050,000－

1,050,000－

600,000－

600,000－

1,050,000－

1,050,000－

650,000－

650,000－

Resona Bank, Limited

950,000－

950,000－

The Norinchukin Bank

750,000－

750,000－

MUFG Bank, Ltd.

650,000－

650,000－

Development Bank of Japan
Inc.

550,000－

550,000－

MUFG Bank, Ltd.

750,000－－

750,000

Mizuho Bank, Ltd.

1,050,000－－

1,050,000

600,000－－

600,000

1,050,000－－

1,050,000

Mizuho Trust & Banking
Co., Ltd.
Development Bank of JapanInc.
Mizuho Bank, Ltd.
The Norinchukin Bank

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

－－

650,000

950,000－－

950,000

750,000－－

750,000

MUFG Bank, Ltd.

650,000－－

650,000

Development Bank of Japan
Inc.

550,000－－

550,000

MUFG Bank, Ltd.

500,000－－

500,000

MUFG Bank, Ltd.

500,000－－

500,000

Mizuho Bank, Ltd.

100,000－－

100,000

The 77 Bank, Ltd.

500,000－－

500,000

The Hiroshima Bank, Ltd.

500,000－－

500,000

MUFG Bank, Ltd.

1,900,000－－

1,900,000

Mizuho Bank, Ltd.

4,200,000－－

4,200,000

Sumitomo Mitsui Banking
Corporation
Development Bank of Japan
Inc.

0.37000

0.452540.61380

0.34800

0.41800

May. 31,2023(Note3)0.56500

0.63500

Feb. 27, 2026

0.70000
0.78300

1,900,000

376,000－－

376,000

0.28568

MUFG Bank, Ltd.

300,000－－

300,000

0.34900

Mizuho Bank, Ltd.

2,459,000－－

2,459,000

260,000－－

260,000

900,000－－

900,000

565,000－－

565,000

0.48000

MUFG Bank, Ltd.

450,000－－

450,000

0.56500

Mizuho Bank, Ltd.

1,332,000－－

1,332,000

390,000－－

390,000

1,350,000－－

1,350,000

59 －Jul. 13, 2022

0.42622－－

Aug. 29, 2025

0.34000－

Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.

Nov. 30, 2023

0.32000

1,900,000

Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.
Development Bank of JapanInc.

Repayment Use of
Security
method proceeds

0.35341

650,000

Longtermloans Resona Bank, Limited
payable The Norinchukin Bank

Repayment
due dateAug. 31, 2027

Aug. 30, 2024
0.35900

Feb. 26, 2027
0.57500

UnLump-sum
securedpayment(Note2)
Unat
guaranmaturityteedAverage
category

LenderBalanceAmount ofAmount ofat beginning ofincrease during

decrease

periodperiodduring period

Balanceat end of period

MUFG Bank, Ltd.

500,000－－

500,000

Mizuho Bank, Ltd.

500,000－－

500,000

500,000－－

500,000

700,000－－

700,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co.,

interest rate(%)
(Note 1)－－200,000

200,000－－

200,000

The Norinchukin Bank

100,000－－

100,000

MUFG Bank, Ltd.

1,000,000－－

1,000,000

Mizuho Bank, Ltd.

800,000－－

800,000

700,000－－

700,000

400,000－－

400,000

400,000－－

400,000

200,000－－

200,000

The Norinchukin Bank

200,000－－

200,000

Shinkin Central Bank

200,000－－

200,000

0.41388

MUFG Bank, Ltd.

1,000,000－－

1,000,000

0.55600

Mizuho Bank, Ltd.

800,000－－

800,000

700,000－－

700,000

200,000－－

200,000

Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co.,
Ltd.
Resona Bank, Limited

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co.,

Use ofmethodproceeds(Note3)0.39580

0.40580

Aug. 30, 2024

Aug. 31, 2026
0.56600

400,000－－

400,000

Resona Bank, Limited

200,000－－

200,000

The Norinchukin Bank

500,000－－

500,000

MUFG Bank, Ltd.

1,400,000－－

1,400,000

Mizuho Bank, Ltd.

2,400,000－－

2,400,000

1,000,000－－

1,000,000

Lump-sum

200,000－－

200,000

at maturity

400,000－－

400,000

300,000－－

300,000

Ltd.

Long-

Sumitomo Mitsui Banking

term

Corporationloans Sumitomo Mitsui Trust Bank,
payable Limited
Mizuho Trust & Banking Co.,
Ltd.
Resona Bank, Limited
THE BANK OF FUKUOKA,

payment－－

300,000

200,000－－

200,000

The 77 Bank, Ltd.

200,000－－

200,000

The Yamaguchi Bank, Ltd.

200,000－－

200,000

1,410,000－－

1,410,000

1,200,000－－

1,200,000

1,300,000－－

1,300,000

600,000－－

600,000

Resona Bank, Limited

700,000－－

700,000

Shinkin Central Bank

200,000－－

200,000

MUFG Bank, Ltd.

1,000,000－－

1,000,000

Mizuho Bank, Ltd.

1,500,000－－

1,500,000

1,230,000－－

1,230,000

200,000－－

200,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co.,
Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust Bank,
LimitedMizuho Trust & Banking Co.,

600,000－－

600,000

Resona Bank, Limited

800,000－－

800,000

The Norinchukin Bank

900,000－－

900,000

400,000－－

400,000

Shinkin Central Bank

300,000－－

300,000

The 77 Bank, Ltd.

300,000－－

300,000

The Yamaguchi Bank, Ltd.

300,000－－

300,000

1,000,000－－

1,000,000

Ltd.

THE BANK OF FUKUOKA,LTD.

MUFG Bank, Ltd.

secured(Note2)

Unguaranteed

300,000

Mizuho Bank, Ltd.

0.68500Un-

The Senshu Ikeda Bank, Ltd.

LTD.

Security

May. 31, 2023
0.30900

200,000

Sumitomo Mitsui Banking

Repayment

due date

0.29900

Resona Bank, Limited

Ltd.

Repayment－

60 －

0.69500

0.28100

Feb. 29, 2028

Aug. 31, 2023
(Note3)0.27100

0.42000

0.41000

Feb. 27, 2026

category

Lender

MUFG Bank, Ltd.
Development Bank of JapanInc.
The Senshu Ikeda Bank,Ltd.

Average
BalanceAmount ofAmount ofinterest rate
Balanceat beginning of increase during
decrease(%)
at end of period
periodperiodduring period(Note 1)
1,170,000－－

1,170,000

900,000－－

900,000

Repayment
due date

Repayment Use of
Security
method proceeds

0.46000
0.44000

Feb. 28, 2029

300,000－－

300,000

MUFG Bank, Ltd.

1,200,000－－

1,200,000

Mizuho Bank, Ltd.

200,000－－

200,000

800,000－－

800,000

1,800,000－－

1,800,000

MUFG Bank, Ltd.

1,400,000－－

1,400,000

Mizuho Bank, Ltd.

300,000－－

300,000

1,000,000－－

1,000,000

800,000－－

800,000

MUFG Bank, Ltd.

1,700,000－－

1,700,000

Mizuho Bank, Ltd.

1,300,000－－

1,300,000

1,200,000－－

1,200,000

600,000－－

600,000

Resona Bank, Limited

900,000－－

900,000

Development Bank of Japan
Inc.

800,000－－

800,000

Mizuho Bank, Ltd.

605,000－－

605,000

Sumitomo Mitsui Banking
Corporation

800,000－－

800,000

MUFG Bank, Ltd.

2,500,000－－

2,500,000

Mizuho Bank, Ltd.

400,000－－

400,000

545,000－－

545,000

500,000－－

500,000

Aug. 31, 2028 Lump-sum
payment
atmaturity

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited

Sumitomo Mitsui Banking
Corporation
The Norinchukin Bank

Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.

Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.

Longtermloans Resona Bank, Limited
payable MUFG Bank, Ltd.

0.27300

Nov. 30, 2023

0.44100

May. 29,2026

0.59900
May. 31, 2028

0.50000
0.29150

0.49500

500,000－－

500,000

1,542,000－－

1,542,000

300,000－－

300,000

500,000－－

500,000

2,500,000－－

2,500,000

Resona Bank, Limited

500,000－－

500,000

THE BANK OF FUKUOKA,
LTD.

200,000－－

200,000

MUFG Bank, Ltd.

400,000－－

400,000

Mizuho Bank, Ltd.

990,000－－

990,000

1,840,000－－

1,840,000

600,000－－

600,000

700,000－－

700,000

Resona Bank, Limited

500,000－－

500,000

The Norinchukin Bank

400,000－－

400,000

Shinkin Central Bank

200,000－－

200,000

The Senshu Ikeda Bank,
Ltd.

200,000－－

200,000

The 77 Bank, Ltd.

400,000－－

400,000

200,000－－

200,000

1,370,000－－

1,370,000

0.45000
0.36000

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

The Yamaguchi Bank, Ltd.
MUFG Bank, Ltd.
Development Bank of JapanInc.

400,000－－

400,000

MUFG Bank, Ltd.

300,000－－

300,000

Mizuho Bank, Ltd.

100,000－－

100,000

800,000－－

800,000

1,380,000－－

1,380,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited

－

61 －

Aug. 29, 2025

0.28000

0.47500

0.29700

Feb. 28, 2025

0.28700

0.46600
Aug. 31, 2027

0.28600

May. 30, 2025

Unsecured(Note2)
Unguaranteedcategory

LenderAverage
BalanceAmount ofAmount ofinterest rate
Balanceat beginning of increase during
decrease(%)
at end of period
periodperiodduring period(Note 1)

MUFG Bank, Ltd.

800,000－－

800,000

Mizuho Bank, Ltd.

210,000－－

210,000

1,800,000－－

1,800,000

300,000－－

300,000

870,000－－

870,000

Resona Bank, Limited

1,100,000－－

1,100,000

The Norinchukin Bank

1,020,000－－

1,020,000

Development Bank of Japan
Inc.

370,000－－

370,000

0.43500

MUFG Bank, Ltd.

200,000－－

200,000

0.28400

Mizuho Bank, Ltd.

600,000－－

600,000

500,000－－

500,000

500,000－－

500,000

500,000－－

500,000

1,000,000－－

1,000,000

500,000－－

500,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
THE BANK OF FUKUOKA,LTD.
Shinkin Central Bank
The 77 Bank, Ltd.
The Shizuoka Bank, Ltd.

1,000,000－－

1,000,000

300,000－－

300,000

Mizuho Bank, Ltd.

700,000－－

700,000

600,000－－

600,000

500,000－－

500,000

500,000－－

500,000

500,000－－

500,000

1,000,000－－

1,000,000

500,000－－

500,000

500,000－－

500,000

1,280,000－－

1,280,000

1,030,000－－

1,030,000

500,000－－

500,000

2,650,000－－

2,650,000

2,110,000－－

2,110,000

480,000－－

480,000

200,000－－

200,000

Resona Bank, Limited

300,000－－

300,000

The Norinchukin Bank

210,000－－

210,000

MUFG Bank, Ltd.

1,550,000－－

1,550,000

Mizuho Bank, Ltd.

1,270,000－－

1,270,000

Sumitomo Mitsui Banking
Corporation

1,180,000－－

1,180,000

MUFG Bank, Ltd.

1,060,000－－

1,060,000

Mizuho Bank, Ltd.

340,000－－

340,000

760,000－－

760,000

1,500,000－－

1,500,000

Resona Bank, Limited
LongThe Norinchukin Banktermloans The Senshu Ikeda Bank,
payable Ltd.
The Yamaguchi Bank, Ltd.
The Hiroshima Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Resona Bank, Limited

Repayment Use of
Security
method proceeds

0.50700
Nov. 30, 2028

MUFG Bank, Ltd.

Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.

Repayment
due date

1,400,000－－

1,400,000

Development Bank of Japan
Inc.

800,000－－

800,000

The Norinchukin Bank

700,000－－

700,000－

62 －0.29400

Aug. 29, 2025

0.55850

0.56850

Feb. 28, 2029

0.25607

Aug. 30, 2024

0.47500

Aug. 31, 2029

0.26502

Nov. 30, 2023

0.46000

May. 31, 2028

UnLump-sum
securedpayment(Note2)
Unat
guaranmaturityteedcategory

LenderAverage
BalanceAmount ofAmount ofinterest rate
Balanceat beginning of increase during
decrease(%)
at end of period
periodperiodduring period(Note 1)

MUFG Bank, Ltd.

2,490,000－－

2,490,000

Mizuho Bank, Ltd.

790,000－－

790,000

1,760,000－－

1,760,000

500,000－－

500,000

900,000－－

900,000

MUFG Bank, Ltd.

480,000－－

480,000

Mizuho Bank, Ltd.

360,000－－

360,000

390,000－－

390,000

900,000－－

900,000

Resona Bank, Limited

750,000－－

750,000

THE BANK OF FUKUOKA,
LTD.

500,000－－

500,000

MUFG Bank, Ltd.

1,120,000－－

1,120,000

Mizuho Bank, Ltd.

840,000－－

840,000

910,000－－

910,000

1,000,000－－

1,000,000

980,000－－

980,000

Resona Bank, Limited

800,000－－

800,000

The Norinchukin Bank

800,000－－

800,000

Sumitomo Mitsui Trust
Bank, Limited－

1,100,000－

1,100,000

Mizuho Bank, Ltd.

－

400,000－

400,000

Mizuho Trust & Banking
Co., Ltd.

－

300,000－

300,000

Resona Bank, Limited－

300,000－

300,000－

400,000－

400,000－

300,000－

300,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

Long- The Norinchukin Bank
term
THE BANK OF FUKUOKA,
loans
LTD.
payableShinkin Central Bank－

300,000－

300,000

The 77 Bank, Ltd.

－

300,000－

300,000

The Yamaguchi Bank, Ltd.

－

400,000－

400,000

The Shizuoka Bank, Ltd.

－

300,000－

300,000

The Hiroshima Bank, Ltd.

－

300,000－

300,000

Aozora Bank, Ltd.

－

300,000－

300,000

Nippon Life Insurance
Company－

1,000,000－

1,000,000

The Joyo Bank, Ltd－

300,000－

300,000

MUFG Bank, Ltd.

－

1,160,000－

1,160,000

Mizuho Bank, Ltd.

－

960,000－

960,000－

880,000－

880,000－

550,000－

550,000－

350,000－

350,000

Resona Bank, Limited－

500,000－

500,000

The Norinchukin Bank－

400,000－

400,000

MUFG Bank, Ltd.

－

1,400,000－

1,400,000

Mizuho Bank, Ltd.

－

1,050,000－

1,050,000－

600,000－

600,000－

500,000－

500,000－

300,000－

300,000

Resona Bank, Limited－

450,000－

450,000

Development Bank of Japan
Inc.

－

550,000－

550,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.

The Norinchukin Bank
Total

－

350,000－

350,000

229,142,000

16,000,000

18,400,000

226,742,000

－

63 －

Repayment
due date

0.60200

Nov. 29, 2030

0.52200

Feb. 29, 2028

Repayment Use of
Security
method proceeds

Feb. 28, 2030

0.66500

May. 31, 2029

0.26567

Jul. 11, 2024

0.55000

Feb. 26, 2027

0.85500

Feb. 28, 2030

UnLump-sum
securedpayment(Note2)
Unat
guaranmaturityteed(Note 1) Average interest rate is the weighted average interest rate during the period. Interest rates are rounded to six decimal places. The interest
rates for loans hedged by interest rate swap transactions used to hedge the risk of interest rate fluctuations are the interest rat es reflecting
the effect of the interest rate swaps.
(Note 2) Use of proceeds are purchase of assets and related expenses and repayment of loans payable.
(Note 3) As of the end of the fiscal period under review, these loans are recorded as “Current portion of long-term loans payable” in “Current
liabilities” on the balance sheet.
(Note 4) Early repayment was made on May 31, 2022.
(Note 5) The following is the maturity schedule of long-term loans within five years of the balance sheet date.

(Thousands of yen)Due in1 year or lessLong-term loans payable

1 to 2 years

31,310,000

35,545,000

－

64 －

2 to 3 years
34,213,000

3 to 4 years
25,780,000

4 to 5 years
21,687,000