Semi-Annual Report
Picture on the cover

Properties of “Prime Properties”
SHR designates the “high quality” office buildings, residences, hotels, etc.
located at “strategic locations” as “Prime Proper ties” and prioritizes
investments. There are 92 Prime Properties among the 121 properties SHR owns.

Sekisui House Reit, Inc.

Securities Code

4-15-1, Akasaka, Minato-ku, Tokyo https://sekisuihouse-reit.co.jp/en/

3309

12

th
Fiscal Period(From May 1, 2020 to October 31, 2020)

Overview of SHR

Performance Highlights

Message to Our Unitholders

Distribution per Unit
I would like to express our sincere gratitude for your continued andloyal patronage.
I hereby report on the management status and financial results forthe 12th fiscal period ended October 2020 of Sekisui House Reit, Inc.
(“SHR”).

1,685 yen

Distribution per Unit (Actual)
12th Fiscal Period Ended October 2020

Business Results and Distribution
11th FP
ended Apr. 2020
(Actual)12th FP
ended Oct. 2020
(Actual)13th FP
ending Apr. 2021
(Forecast) (Note)

14th FP
ending Oct. 2021
(Forecast) (Note)

Operating revenue(million yen)

14,59014,826

14,868

14,526

Operating income(million yen)

7,874

7,868

7,714

7,439

Ordinary income(million yen)

6,991

6,993

6,814

6,525

Net income(million yen)

6,991

6,992

6,814

6,525

Distribution per unit
(yen)

1,665

1,685

1,641

1,626

Fiscal Period(Note)The respective figures for “13th FP ending Apr. 2021 (Forecast)” and “14th FP ending Oct. 2021 (Forecast)” are as of December 15, 2020 (the announcement date of business results) calculated based upon certain assumptions. Actual operating revenue, operating income, ordinary income, net income and distribution per unit may differ materially due to various factors. The above
forecasts are not intended to be guarantees of business results or the actual amount of distribution.

Operating Revenue / Net Income(million yen)

Operating revenue

16,00014,00014,59014,826

14,868Distribution per Unit
Net income

I ask for the continued support and encouragement of unitholders.

(yen)

2,000

14,526
1,665

12,000The fiscal period under review started with the announcing of stay athome order to prevent the spread of COVID-19.
Under these circumstances, tenants requested rent concessions.
However, the number of requests and the amount of impact were low,
and the impact of COVID-19 on the business results for the fiscal period
under review was slight.
SHR owns 121 properties at asset size of 532.9 billion yen (245.5 billion
yen for office buildings, 248.0 billion yen for residence and 39.3 billion
yen for hotel) with no change from the end of the previous period.
Regarding the occupancy rate as of the end of the 12th fiscal period
ended October 2020, the office buildings at 100%, the residence at
96.7%, the hotel at 100%, and the portfolio as a whole at 97.7% andcontinued to maintain high levels.
As the result above, management performance for the fiscal period under review resulted in operating
revenue of 14,826 million yen, operating income of 7,868 million yen, ordinary income of 6,993 million
yen and net income of 6,992 million yen, and the distribution per unit declared for the fiscal period was
1,685 yen. The future economic activity is still uncertain due to no prospect of convergence of COVID-19
pandemic. SHR will continually pay close attention to future trends and strive for agile operation in
anticipation of changes in the environment to focus on stabilizing distributions.
As a continuing effort, SHR, together with Sekisui House, our sponsor that aims to become a leading
company in ESG management, will proactively disclose ESG-related information and strives to enhancedialogues with stakeholders.
In September 2020, SHR issued green bonds in a total amount of 8 billion yen under favorable conditions
as a continuous effort to conduct real estate investment with due consideration given to ESG.
SHR issued first ESG report in December 2020.

1,685

January 2021
1,641

Junichi Inoue

1,626

1,500

Executive Director of Sekisui House Reit, Inc.
President & Representative Director of
Sekisui House Asset Management, Ltd.

10,000
8,000

1,000
6,991

6,992

6,814

6,000

Contents

6,525

4,000

500

2,000
0

1

0
11th FP
ended Apr. 2020

12th FP
ended Oct. 2020

13th FP
ending Apr. 2021

14th FP
ending Oct. 2021

11th FP
ended Apr. 2020

12th FP
ended Oct. 2020

13th FP
ending Apr. 2021

14th FP
ending Oct. 2021

ActualActualForecast

Forecast

ActualActualForecast

Forecast

Overview of SHR ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙1Statement of Cash Distributions ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙46

Financial Section (Audited) ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙40Statement of Cash Flows ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙47

Financial Statements ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙41

Notes to Financial Statements ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙48

Balance Sheet ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙41

Supplementary Schedules ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙64

Statement of Income and Retained Earnings ∙ ∙43

Independent Auditor’s Report ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙75

Statement of Changes in Net Assets ∙ ∙ ∙ ∙ ∙ ∙44Unitholder Information ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙ ∙77
2

Overview of SHR

Key Indicators

Investment Policy
As of December 15, 2020 (the announcement date of business results)

Overview of Portfolio

Investment Strategies
Prime Properties centered on “Strategic Location” and “High Quality”

Number of owned properties

Total acquisition priceTotal appraisal value(as of the end of the 12th FP ended Oct. 2020)

121 properties 532.9 billion yen 600.7 billion yen
Occupancy rate

Ratio of Prime Properties(as of the end of November 2020)(acquisition price basis)97.6 %
Usage type ratio(Note1)
Hotel
7.4%
(2 properties)

Nagoya area
4.3%
(10 properties)

Residential Properties

Sites suited for “bases forsustainable living” for residents

Commercial Properties

Sites suited for “sustainable bases ofoperation” of tenant companies

1.58 %
15 years or more
9.5%
(21 properties)

Under 5 years
4.6%(9 properties)

Osaka area
26.7%
(13 properties)

532.9 billion yen

Office building
46.1%(7 properties)

Residence
46.6%(113 properties)

Financial Status

Three Major
Metropolitan Areas

95.4%

10 years ormore but lessthan 15 years
40.2%(71 properties)

Averagebuilding age

11.1 years

Greater Tokyo
64.3%(82 properties)

Japan Credit Rating Agency, Ltd. (JCR)

AA (Stable)

Long-term debt ratio

Fixed interest rate debt ratio

97.5 %

Residence

As of Dec. 15, 2020
Investment ratio
Examples of specific asset types (acquisition price basis) (the announcement dateof business results)

AA-(Stable)Target investment
ratio in the medium
to long term

Residences
Student dormitories
Company housings

30%-55%

46.6%

Approx. 45%

Office buildings
Data centers

30%-55%

46.1%

Approx. 45%

Hotels0%-30%

7.4%

Retail properties
Serviced apartments
Senior properties (Note)

0%-10%-

Office building

Approx. 15%(The ratio of Hotelis Approx. 10%)(Note) Housings for the elderly with services, Fee-based homes for the aged and Daycare centers are included in Senior properties.

Investment Ratio in Priority Investment Area by Asset Category
Set priority investment areas and investment ratio in light of the characteristics of each asset category.
As of Dec. 15, 2020
Investment ratio(the announcement date(acquisition price basis)of business results)

Asset category

Priority investment area

Residential Properties

Greater Tokyo

70% or higher

76.8%

Commercial Properties

Three Major Metropolitan Areas(Greater Tokyo, Osaka area, Nagoya area)

80% or higher

100%

Rating and Investment Information, Inc. (R&I)(Note 1) “Hommachi Garden City” is calculated by treating the office building portion as one property and hotel portion as one property according to the usage type of the building under compartmentalized ownership for calculating “Usage type ratio,” and the entire building as one property for calculating “Area ratio” and “Building age ratio”.
(Note 2) The “Three Major Metropolitan Areas” refer to “Greater Tokyo”, “Osaka area” and “Nagoya area.” The “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 3) “Esty Maison Yokohama-aobadai” is counted as two properties the “North” and the “South”, which were completed in different time, when calculating diversification by “Building age ratio”.

3

Residential
Properties

Retail and other properties(as of the end of the12th FP ended Oct. 2020)

100 %Usage typeHotel

LTV (total asset basis)45.1 %In addition to the functionality sought by tenant companies, giveconsideration to the environment as a societal request and establish
specifications suitable for BCP sites to make comprehensive determinations regarding buildings suited to neighborhoods and the like.

Build a portfolio with “residences” as “the sustainable bases of living for residents” and “office buildings” as “the sustainable basesof operation for business”, as core assets, while promoting investment in hotels that are expected to achieve continuous growth.

Commercial
Properties

Credit Rating

As residences, provide high-class fundamental functionality, suchas comfort and safety, and give due consideration to the environment as a societal request to make comprehensive determinations
regarding buildings suited to neighborhoods and the like.

Investment Ratio by Usage TypeCore assets
5 years ormore but lessthan 10 years
45.7%(21 properties)

High quality

Portfolio Development Policy

Assetcategory

Asset size

Strategic location(surveyed in Oct. 2020)

Building age ratio(Note1) (Note3)

Others4.6%(16 properties)

Asset category

Portfolio PML value

91.3 %
Area ratio(Note1) (Note2)

Designate “high quality” residential properties and commercial properties located in “strategic location” as “Prime Properties”,
and continue to invest primarily in Prime Properties with the aim of enhancing the quality of the portfolio.

Investment Policy for Hotel
Invest in hotels which can be expected to be highly competitive over the medium to long term (simplified accommodations
and the like are in principle not be invested).
Invest primarily in hotels regarded as Prime Properties.
4Overview of SHR
Sapporo-shi Residence/

Portfolio Map

3 properties

As of December 15, 2020 (the announcement date of business results)

Major Owned Properties

82 properties
14 properties
Osaka area
Nagoya area 10 properties
16 properties
Others

Office Building

Greater Tokyo

Greater Tokyo

Residence(Note)

Greater Tokyo
Office building/

Hotel

Residence/

3 properties

79 properties

Nagoya area

■ Akasaka GC■ Gotenyama SH Building■ GC Shinagawa Gotenyama

Fukuoka-shi

Kanazawa-shi

Residence/

Residence/

8 properties

1 property

Office building/Residence/

Osaka Area

1 property

9 properties

Kitakyushu-shi

Yokkaichi-shi

Sendai-shi

Residence/

Residence/

Residence/

1 property

1 property

1 property■ The Ritz-Carlton, Kyoto

Shizuoka-shi■ PM Hongo■ PM Kuramae■ PM Mitatsunamachi

Osaka area(Note)
Office building/Residence/
Hotel/■ PM Shinagawa■ PM Ginza East

Residence/

1 property

3 properties

Nagoya Area

9 properties■ Hommachi Minami GC ■■ Hommachi GC■ HK Yodoyabashi GA■ PM Kitatanabe■ Kobe Women’s Student
Housing

2 properties■ PM Musashinonomori■ Hirokoji GA■ PM Higashisakura■ PM Gokiso■ PM Yuhigaoka

Others■ PM Gotenyama East

■ PM Daikanyama■ PM Gotenyama West

■ EM Toyosu Residence■ PM Odorikoen■ PM Asakusabashi

5■ PM Ebisu■ PM Yokohama Nihon-odori ■ PM Shirokane-takanawa ■ PM Ichigayayamabushicho ■ PM Shirokanedai Tower ■ PM Otsuka■ PM Minami 2-jo

■ Office Building ■ Residence ■ Hotel■ PM Kamokamogawa■ MAST Hakata■ PM Central Park

■ EM Shizuoka Takajo■ GM Hirose-dori

PM: Prime Maison EM: Esty Maison GC: Garden City GA: Garden Avenue GM: GRAND MAST

(Note) “Hommachi Garden City,” located in the Osaka area, is calculated by treating the office building portion as one property and hotel portion as one property.

6Overview of SHR

ESG Initiatives
Basic initiative

SocialSHR and SHAM contribute to a sustainable society by conducting real estate investment management with due consideration
given to ESG in accordance with the Sustainable Vision advocated by Sekisui House, the sponsor, which aims to become aleading company in ESG management.
SHAM has established Sustainability Policy in order to connect its overall business operations with sustainability objectives.
Moreover, the Sustainability Committee sets up targets, monitors compliance, evaluates the effect of measures implemented,
and investigates improvement measures on a regular basis.

SHR promotes to initiatives for disaster prevention to enable tenant companies and residents to stay with security and safety.
SHR has also contributed to local communities by introducing Share Bikes and Food Truck to some properties.
SHAM has created a comfortable working environment by introducing system of working from home as a preventive measureagainst COVID-19. SHAM has also made efforts to encourage employees to acquire qualifications to develop expertise.

Issuance of ESG Report
SHR issued its first ESG Report (Japanese Ver.) in December 2020 to proactively disclose ESG-related
information and strives to enhance dialogues with stakeholders.
SHR identified materiality (Important Issues) and established action plan, targets for each materiality
and promote efforts for achievement.

Initiatives / External Certifications
SHAM has decided to support the basic approaches of the Principles for Responsible Investment (PRI) regarding ESG
investment and became a signatory.
SHAM has expressed support for the recommendations of TCFD (Task Force on Climate-related Financial Disclosure).
Sekisui House Group has expressed support for the 10 principles of the UN Global Compact.
SHR acquired “Green Star” rating for the fourth consecutive year in GRESB Real Estate
Assessment 2020.
SHR acquired the highest rank “A” in GRESB Disclosure Assessment (5-level rating from A to E).

Emergency cabinet
for elevators

Introduction of Share
Bikes

Prime Maison Gotenyama Eastand others

Garden City Shinagawa
Gotenyama

GovernanceFor the purpose of tightening examinations on transactions with interested parties, including the acquisition of portfolio
assets and the entrustment of property management services, SHAM has adopted frameworks each decision to be made by
Investment Committee and Compliance Committee must be conditional upon the attendance and assent by external members appointed from among professionals who have no special interest with interested parties of SHAM.
Furthermore, SHAM stipulates Rules for Transactions with Interested Parties concerning transactions between the interested
parties of SHAM and SHR as an internal rule to exclude adverse effect of conflicts of interest. For example the acquisition
price or sale price must be refer to appraisal value, etc. determined by a real estate appraiser who is a non-interested party.
From perspective of emphasizing unitholder benefit, SHR further strengthens the incentive for maximizing unitholder value by
introducing the asset management fee structure partly linked to performance of SHR’ s investment units, which is paid to
SHAM by SHR.

Asset Management Fee

Environment

Management Fee I

In recent years, climate change caused by global warming is highly affecting the environment, society, lifestyle of people
and corporate activities. SHR, who conducts real estate investment management with due consideration given to theESG, recognizes that resolving environmental issues such as climate change is one of the key issues in our policy of contributing to the realization of a sustainable society. Based on this recognition, SHR sets targets for the environment-related indicators of owned properties with introducing LED lighting, energy-saving air conditioner, Low-E paired glasses
with thermal insulation, and other equipment with low environmental impact in the properties, thereby contributing
decarbonization. In accordance with the Gohon no ki (“five trees”) project promoted by Sekisui House, SHR conducts
maintenance and management of planting and other greenery measures, centering on tree species with consideration
given to the native vegetation and other ecosystem matters.
Solar power generation panels

Rooftop gardens(Fees linked to total assets and investment units performance)

Management Fee II(Fees linked to DPU and operating income)Management Fee III(Acquisition fees)

Management Fee IV(Disposition fees)

Management Fee V(Merger fees)

Total assets × (0.14% (annual rate) + Rates linked to relative
performance against TSE REIT Index(upper limit: +0.02%; lower
limit:-0.02%))(Note 1)(Distributable amount per unit × Operating income (Note 2)× 0.002%) × 2 (Note 3)
Acquisition price × 0.3%
However, in the case of acquisition from interested parties, there is noacquisition fee.(Note 4)
Sale price × 0.3%
However, in the case of sale to interested parties, there is no
disposition fee.(Note 4)
Value of Real Estate-Related Assets held by the merger counterparty
at the time of the merger × 0.4%

(Note 1) The rate fluctuates depending on the performance-comparison of the investment unit price of SHR and the TSE REIT Index.
(Note 2) “Distributable amount per unit” and “Operating Income” are before deduction of management fee II .
(Note 3) As SHR implemented a 2-for-1 split of the investment units with May 1, 2018 as the effective date, Management Fee II is calculated by multiplying by 2, whichis the split ratio.

(Note 4) The sale and purchase value does not include consumption tax, etc. and expenses, etc.

For more ESG information of SHR, please refer to the website below
Prime Maison Gotenyama East7

Garden City Shinagawa Gotenyama

https://sekisuihouse-reit.co.jp/assets/pdf/ESG_Report_en.pdf
8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, sponsored by
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 in an effort to expand their assets and secure stable returns by utilizing theirrespective strengths with the aim of continuous enhancement of unitholder value. However, with an aim to securestrong 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 tolong 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”), the asset

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 date as theeffective date of the Investment Corporation Merger, with SHAM being the surviving company and the former SHAM being thedissolving 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 serviced apartments (*1) (*2)). The same shall apply hereinafter.
(*1) “Serviced apartments” refer to furnished residences with appliances where a dedicated operator provides certain services(2) Management Environment and Management Performancea. Management Environment
During the fiscal period under review, the Japanese economy remained the severe situation due to the impact of
COVID-19, but personal consumption and production are recovering under the resumption of economic actvity.
Under such circumstances, in the real estate leasing market, regarding the residences and office buildings, which
are positioned by SHR as core assets of the portfolio and constitute approximately 93% of the portfolio (on an
acquisition-price basis) as of October 31, 2020 ("as of the end of the fiscal period under review"), because theleasing activitiy of residences was temporarily stagnated due to the self-restraint during the period of stay athome order, the number of new applications and contracts for residences have declined. However, after that, thesituation continued to recover. In addition, office buildings continued to have favorable supply-demand conditions
and rental demand remained robust. On the other hand, hotels that constitute approximately 7% of SHR's
portfolio (on an acquisition-price basis) have continued the severe situation as overseas travel demand is stagnant
due to travel and immigration restricitions and self-restraint within Japan under pandemic of COVID-19.
In the real estate transaction market, though the asset type which is less impacted by COVID-19 had a tendency

to be prefered, investors in Japan and overseas have continued to have a strong desire to acquire properties underaccommodative financial conditions, or SHR has seen a shortage of superior properties that it considers to be an
investment target, and expected cap rate has remained at low levels.
b. Management Performance

The number of properties SHR owned as of the end of the fiscal period under review to 121 (comprising 113
residential properties and 8 commercial properties) with an aggregate acquisition price(Note) of 532,910 million yen(248,090 million yen for residential properties and 284,820 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
96.7% for residential properties, 100.0% for commercial properties and 97.7% 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 and Issuance of Investment Corporation Bonds

In order to repay borrowings due for repayment during the fiscal period under review and do the long-term
fixation for the short-term borrowings on April 20, 2020, SHR made borrowing of 20,200 million yen. Also, SHR
issued green bonds on September 9, 2020 (the issuance amount of the seventh investment corporation bonds is

4,000 million yen, maturity is 5 years, the issuance amount of the eighth investment corporation bonds is 4,000
million yen, maturity is 10 years) and used the funds to redeem the long-term borrowings made on May 29, 2020.
As a result, the balance of interest-bearing liabilities at the end of the fiscal period under review is 249,942
million yen and the ratio of total interest-bearing liabilities to total assets (“LTV (total assets basis)”) is 45.1%.

Furthermore, in order to ensure the stability and flixablity of financing measures, a commitment line agreementwith a maxium amout of 15,000 million yen was signed again on October 27, 2020.

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 use is for office buildings, hotels and retail and other properties(including serviced apartments, housing for elderly with service, fee-based homes for the aged, and daycare centers (*); the same
shall apply hereinafter.) and other non-residential business purposes. The same shall apply hereinafter.
(*) Some housing for elderly with service, fee-based homes for the aged, and daycare centers may fall under apartment houses
as defined in the Building Standards Act. The same shall apply hereinafter.

9b. 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.
(JCR)

Long-term issuer rating: AA
Rating outlook: Stable

Japan Credit Rating Agency, Ltd.
(JCR)

Bond rating: AA

Rating and Investment Information, Inc.
(R&I)

Issuer rating: AARating outlook: Stable10(4) Overview of Business Performance and Distributions
Results in the fiscal period under review are operating revenue of 14,826 million yen, operating income of 7,868
million yen and ordinary income of 6,993 million yen, resulting in net income of 6,992 million yen. In addition,
concerning cash distributions, SHR decided to distribute 7,226 million yen, which is the amount of unappropriatedretained earnings after adding reversal of reserve for temporary difference adjustments (136 million yen) andreversal of reserve for reduction entry (96 million yen) based on the application of special tax treatment forinvestment corporations (Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957,
as amended) (the “Special Taxation Measures Act”)).

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 since in the last five years.

Date

Unitholders’ capital(million yen)

Event

Increase(Decrease)

Balance

Total number ofinvestment units
issued and outstanding(units)Increase(Decrease)

Note

Balance

May 24, 2016

Public offering

11,70699,45095,200889,200(Note 1)

June 21, 2016

Third-party allotment

590

100,040

4,800

894,000(Note 2)

May 24, 2017

Public offering

9,661

109,70271,400965,400(Note 3)June 12, 2017

Third-party allotment

487

110,1893,600

969,000(Note 4)

May 1, 2018

Split of investment units―

110,189

969,000

1,938,000(Note 5)

May 1, 2018

Allocation of investment
units through merger―

110,189

1,824,091

3,762,091(Note 6)

June 10, 2019

Public offering

37,162

147,351

501,500

4,263,591(Note 7)

July 9, 2019

Third-party allotment

1,858

149,21025,075

4,288,666(Note 8)(Note 1)
(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)(Note 7)(Note 8)New investment units were issued at an issue price of 127,140 yen (with the issue amount being 122,967 yen) per unit through apublic offering to procure funds for the acquisition of new properties.
New investment units were issued at an issue amount of 122,967 yen per unit by way of third-party allotment and proceeds thereof
were intended to be used to make future partial repayment of loans or as part of future acquisition funds for specified assets.
New investment units were issued at an issue price of 139,912 yen (with the issue amount being 135,320 yen) per unit through apublic offering to procure funds for the acquisition of new properties.
New investment units were issued at an issue amount of 135,320 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.

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.
Upon the Investment Corporation Merger, 1.65 SHR units following the investment unit split were allocated to every SHI unit on
May 1, 2018 and 1,824,091 investment units were newly issued.
New investment units were issued at an issue price of 76,537 yen (with the issue amount being 74,103 yen) per unit through a public
offering to procure funds for the acquisition of new properties.
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.

[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.
8th fiscal period
Fiscal period

9th fiscal period

10th fiscal period 11th fiscal period 12th fiscal period

From: May 1, 2018 From: Nov. 1, 2018 From: May 1, 2019 From: Nov. 1, 2019 From: May 1, 2020
To: Oct. 31, 2018 To: Apr. 30, 2019 To: Oct. 31, 2019 To: Apr. 30, 2020 To: Oct. 31, 2020

High (yen)73,90085,400103,700

99,70078,700Low (yen)

68,20067,10077,20047,15062,500(Note) 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.

11

12

3.

Performance of Distribution, etc.
Distribution per unit for the fiscal period under review (the 12th fiscal period) is 1,685 yen. The policy is to
distribute 7,226 million yen, which is the amount of unappropriated retained earnings after adding reversal ofreserve for temporary difference adjustments (136 million yen) and reversal of reserve for reduction entry (96million 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)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
in capital 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
amount of 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)

8th fiscal period 9th fiscal period 10th fiscal period 11th fiscal period 12th fiscal period
From: May 1,
From: Nov. 1,
From: May 1,
From: Nov. 1,
From: May 1,
2018
2018
2019
2019
2020
To: Oct. 31, 2018 To: Apr. 30, 2019 To: Oct. 31, 2019 To: Apr. 30, 2020 To: Oct. 31, 2020
7,403,117

5,894,142

7,405,454

6,991,331

6,992,995

1,556,827―

775,495－－

5,846,289

5,996,773

6,994,814

7,140,628

7,226,402[1,554][1,594][1,631][1,665][1,685]5,846,289

5,996,773

6,994,814

7,140,628

7,226,402[1,554][1,594][1,631][1,665][1,685]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

―

―

―

―

―

[―]

[―]

[―]

[―]

[―]

4. Future Management Policy(1) Future Trends Outlook
The Japanese economy is expected to recover gradually due to the resume of economic activitiy with taking actionof preventing the spread of COVID-19, reflection of various measures, and recovery of overseas’ economy.
However, paying close attention to the risk of undermining domestic and global economy by COVID-19 is needed.
In addition, it is necessary to monitor the effect of fluction in financial markets and capital markets closely.
Despite these circumstances, SHR believes that demand for residence and office building, which are living andoperation bases in the real estate leasing market, will continue to be firm in general, but SHR considers that the
impact of COVID-19 and the new lifestyles on tenant trends need to be watched closely. On the other hand, thedemand for hotel rooms is expected to remain severe for the time being due to factors such as the decrease in thenumber of foreign tourists visiting Japan due t o immigration restricitions and self-restraint within Japan. Afterthe Japanese government issued the stay at home order, temporary closures and closures were observed in someof SHR's retail tenants in residencial properties, office buildings and two hotels of SHR’s portfolio. In the future,similar measures will be taken by tenants depending on the situation of COVID-19. Therefore, it is necessary to
pay close attention to the impact of COVID-19 on the economic activities of tenants.
In the real estate transaction market, SHR expects the cap rate to remain low for the foreseeable future, but
SHR believes that it is necessary to carefully assess the situation of COVID-19 (including the period required forthe conclusion of the pandemic and the degree of economic recovery after the end of the pandemic).
(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 targets. 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 of developing
and operating residential properties and commercial properties, SHR will seek to secure stable earnings 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 the 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 areas, 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 to 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 developed 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 negotiation rights (and others) with the Six
Sekisui House Real Estate Companies. Thus, particularly with residential properties, SHR will be able to receive
support in acquiring properties for external growth, such as granting of preferential negotiation rights regarding
sale of domestic real estate, etc. owned or developed by the Six Sekisui House Real Estate Companies.

13

14

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. SHR and SHAM can, by concluding a PM services consignment
agreement (“PM Agreement”) or a sponsor support agreement with Sekisui House, seek (a) property management
services for commercial properties, and (b) in relation to management of owned assets for internal growth, (i)technologies and know-how that contribute to 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 know-how required for the operation of SHR, and (iii) support in areas
such as negotiation of master lease agreements with regard to commercial properties. Furthermore, Sekisui House
Real Estate Group possesses PM skills, including know-how on PM services proven by tenant solicitation utilizing
its nationwide network and an abundant management track record. As such, SHR will capitalize on the PM skills

5.

Significant Subsequent Events
Not applicable.
(Reference Information)(1) Borrowing of Funds
SHR conducted the following borrowing of funds on November 30, 2020 for use as repayment funds of a longterm borrowing (11,050 million yen) which was due for repayment on the same day.
a. Fixed Interest Rate Borrowing

Category

Lender(Note 1)

possessed by Sekisui House Real Estate Group by concluding a PM Agreement with Sekisui House Real EstateGroup for residential properties.

Borrowing
Interest rate
AmountDrawdown(Note 2) (Note 3)(million
date(Note 4)yen)

(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 Tokyo, Ltd., Sekisui House
Real Estate Tohoku, 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 and are core companies of real estate unit of the Sekisui House Group operating nationwide. The same shallapply hereinafter.

Longterm

Development
Bank of Japan Inc.

370

0.435%

Total

370

－

Borrowing
methodRepayment Repayment
date
method(Note 5)

Security(Note 6)

Borrowing basedon individualloan agreement,
dated November
Lump-sum
Unsecured25, 2020. The
NovemberNovember
repayment
andlenderunder
the30, 2020
30, 2028
atmaturity
Unguaranteedloan agreement
is as indicated to
the left of thistable.

(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 andstable business relationships with leading domestic financial institutions, centering on megabanks, bolstered by
the creditworthiness of the sponsor, Sekisui House, and also to reduce refinancing risks and risks of fluctuationsin interest rates by exploring the extension of borrowing periods 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.

15

－

－

－

－

－

(Note 1) MUFG Bank, Ltd., Mizuho Bank, Ltd. and Sumitomo Mitsui Banking Corporation are arrangers of the above borrowing.
(Note 2) The borrowing expenses and other charge payable to the lenders are not included.
(Note 3) The first interest payment date will be the last day of February 2021. Subsequent interest payment dates will be the last day of(Note 4)(Note 5)(Note 6)

August and February of each year and the principal repayment date. Where the relevant date is not a business day, such date willbe the immediately following business day or (if the immediately following business day falls into the next calendar month) the
immediately preceding business day.
The first interest calculation period is from November 30, 2020 to the last day of February 2021.
Where the repayment date is not a business day, such date will be the immediately following business day or (if the immediately
following business day falls in the next calendar month) the immediately preceding business day.
SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of the borrowing(in whole or in part), in the period between the drawdown date and the repayment date.

16

(Note 6)

b. Floating Interest Rate Borrowing

Category

Lenders(Note 1)

MUFG Bank, Ltd.
(Note 6)

Mizuho Bank, Ltd.

Borrowing
Interest rate
AmountDrawdown(Note 2) (Note 3)(milliondateyen)

Repayment Repayment
date
method(Note 4)(Note 5)(Note 8) The first interest payment date will be the last day of February 2021. Subsequent interest payment dates will be the last day of
every three months and the principal repayment date. Where the relevant date is not a business day, such date will be theimmediately following business day or (if the immediately following business day falls into the next calendar month) theBase rate(JBA 1-month
Japanese Yen
640
TIBOR) plus
0.190%

610

MUFG Bank, Ltd.

300

(Note 9)November30, 2022

Sumitomo Mitsui
Banking
Corporation

Longterm(2) Aqcuisition of the assets(Note 7)

As of January 21 2021, SHR decided to acquire the following 3 assets below and executed the sale and purchase

contract of trust beneficiary interests for these assets, and the completion of acquisition is scheduled on April 1,
2021.

100 (JBA 3-month
Japanese Yen
TIBOR) plus
800
0.190%(Note 8) (Note 9)

Sumitomo Mitsui
Trust Bank,
Limited

1,380

MUFG Bank, Ltd.

800

(Note 6)

Mizuho Bank, Ltd.

210

Sumitomo Mitsui
Banking
Corporation

1,800

Sumitomo Mitsui
Trust Bank,
Limitedimmediately preceding business day.
The interest rate is substantially fixed at 0.286% by conclusion of the interest rate swap agreement.

(Note 10) The interest rate is substantially fixed at 0.507% by conclusion of the interest rate swap agreement.

Base rate

Mizuho Bank, Ltd.

business day or (if the immediately following business day falls into the next calendar month) the immediately preceding business
day.

Security

750

Sumitomo Mitsui
Banking
Corporation(Note 6)

Borrowing
methodThe borrowings from MUFG Bank, Ltd. are ESG Loan for J-REIT.

(Note 7) The first interest payment date was the last day of December 2020. Subsequent interest payment dates will be the last day of every
month and the principal repayment date. Where the relevant date is not a business day, such date will be the immediately following

Property name

Borrowing basedon individualloan agreement,
dated November
25, 2020. The
Novemberlenders under30, 2020
the loanagreement are as
indicated to theleft of this table.

Base rate(JBA 3-month
Japanese Yen
300
TIBOR) plus
0.355%

Mizuho Trust &Banking Co., Ltd.

870

Resona Bank,
Limited.

1,100

The Norinchukin
Bank

1,020

Total

10,680Type of use

Location

Residence

Nagoya-shi,
Aichi

MAST STYLEHIGASHIBETSUIN

May 30,2025

Granmast Kayaba

2,190

MAST STYLESHIRAKABEMINAMI
Lump-sum
Unsecured
repayment
andat maturity Unguaranteed

Acquisition price(million yen)

900
660

Total

3,750

SellerSekisui House
Real Estate
Chubu, Ltd.

―

November30, 2028(Note 8) (Note 10)

－

－

－

－

－

－

(Note 1) MUFG Bank, Ltd., Mizuho Bank, Ltd. and Sumitomo Mitsui Banking Corporation are arrangers of the above borrowings.
(Note 2) The borrowing expenses and other charge payable to the lenders are not included.
(Note 3) The base rate applicable to the calculation period for the interest payable on an interest payment date shall be the Japanese Yen
TIBOR (Tokyo Inter Bank Offered Rate), corresponding to the calculation period of the interest, two business days prior to theimmediately preceding relevant interest payment date. The Japanese Yen TIBOR is published by the Japanese Bankers Association(JBA) TIBOR Administration. The base rate is subject to review every interest payment date. Where no rate that corresponds tothe interest calculation period exists, the base rate shall be that which corresponds to the concerned period calculated based on themethod provided for in the relevant individual loan agreement.
(Note 4) Where the repayment date is not a business day, such date will be the immediately following business day or (if the immediately
following business day falls in the next calendar month) the immediately preceding business day.
(Note 5) SHR may, by giving prior written notice and if certain other terms and conditions are met, make early repayment of the borrowings(in whole or in part), in the period between the drawdown date and the repayment date.

17

18

Outline of the investment corporation
1.

Status of Capital

Fiscal period

Total number of investment
units authorized (units)
Total number of investment
units issued and outstanding(units)

As of the end As of the end As of the end As of the end As of the endof 8th fiscal of 9th fiscal of 10th fiscal of 11th fiscal of 12th fiscal
periodperiodperiodperiodperiod(Oct. 31,
(Apr. 30,
(Oct. 31,
(Apr. 30,
(Oct. 31,
2018)
2019)
2019)
2020)
2020)
20,000,000

20,000,000

20,000,000

20,000,000

20,000,000

3,762,091

3,762,091

4,288,666

4,288,666

4,288,666

Unitholders’ capital (million
yen)110,189

110,189

149,210

149,210

149,210

Number(persons)

20,293

18,73618,986

19,23019,2792.

ofunitholders

Custody Bank of Japan, Ltd. (Trust Account)

Number ofunits owned(units)Matters Concerning Directors, etc.

Position
Executive
Director

Supervisory
Director

Matters Concerning Investment Units
Of the unitholders as of the end of the fiscal period under review, the following are the top ten unitholders in termsof investment unitholding ratio.

Name

Percentage of
owned units tototal units
issued andoutstanding(%)

Independent
AuditorKey concurrently held position, etc.

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

President & Representative Director,
Sekisui House Asset Management, Ltd.

―

Name
Junichi Inoue(Note 2)

Shigeru Nomura

President, Shigeru Nomura Certified Public
Accountant OfficeOutside Director, Eiken Chemical Co., Ltd.

1,800

Member of Corporate Revitalization
Committee, The Resolution and Collection
Corporation (RCC)

Tatsushi Omiya

Outside Director, QB Net Holdings Co., Ltd.
Lawyer, Lex Law Office

Ernst & Young
ShinNihon LLC

―

1,800
19,200(Note 3)(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) On January 22, 2021, SHR had accepted the resignation request from Junichi Inoue, Executive Director of SHR. Upon this resignation,
Atsuhiro Kida, Substitute Executive Director of SHR, will become the Executive Director of SHR on February 1, 2021.

(Note 3) The total amount of compensation for the independent auditor, as stated above, is an approximation and includes compensation for
preparing comfort letters for the issuance of the Seventh and Eighth Series Unsecured Investment Corporation Bonds in September

1,041,318

24.28

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

704,667

16.43

Sekisui House, Ltd.

200,750

4.68

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

195,991

4.57

Custody Bank of Japan, Ltd. (Securities Investment Trust Account)

106,0212.47(2) Policy for determining whether to dismiss or refuse the reappointment 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.

SMBC Nikko Securities Inc.

72,234

1.68

4.

STATE STREET BANK WEST CLIENT - TREATY 505234

55,6451.30

JP MORGAN CHASE BANK 385771

43,495

1.01

Mitsubishi UFJ Morgan Stanley Securities Co., Ltd.

35,977

0.84

BNYM AS AGT/CLTS 10 PERCENT

33,6990.79

2,489,797

58.06

Total
(Note)

19

3.

(1) Name and other information of 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 as of the date of this document.

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

2020, as well as compensation for auditing matters related to English financial statements.

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 forOperation of Administrative Instruments)

Mitsubishi UFJ Trust and Banking Corporation

Administrative Agent (Administrative Agent for
Investment Corporation Bonds)

MUFG Bank, Ltd.

20

Condition of investment assets
1.

(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. for

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.

Type of
asset

Asset
category

Geographical area,etc.

As of the end of 11th fiscal
As of the end of 12th fiscal
periodperiod(Apr. 30, 2020)(Oct. 31, 2020)
As a
As a
Total amount
Total amountpercentage ofpercentage of
held
held
total assets
total assets(million yen)(million yen)(%)(%)
(Note 1)
(Note 1)
(Note 2)

Real estatein trust

each 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 for(Note 2)

Greater Tokyo

188,641

34.1

187,835

33.9

Other areas

57,01910.3

56,858

10.3

Three major
metropolitan areas

279,267

50.4

278,381

50.2

―

―

―

―

Total of real estate in trust

524,92994.8

523,075

94.4

Deposits and other assets

29,0595.2

30,991

5.6

Total amount of assets

553,988100.0

554,067

100.0

Residential
properties
Commercial
properties

Other areas(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 fiscal 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.

2.

(Note 3)ownership interest owned by SHR or trustees. The same shall apply hereinafter.

“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 and

The Ritz-Carlton, Kyoto, the figure indicates the area corresponding to the quasi co-ownership interest 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 total 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) “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 otherinformation regarding the property may be described separately for the Office building portion and the Hotel portion. The same shallapply hereinafter.

(Note 7) For “Akasaka Garden City”, SHR owns 65.45% quasi co-ownership interest of trust beneficiary interest in real estate regarding thecompartmentalized ownership interest in all of the exclusively-owned portions of the 1st floor under ground through 4th floor above
ground and 11th floor through 19th floor above ground of the building, as well as the accompanying right of site (ratio of right of site:662,768/1,000,000 (or approximately 66.3%)), and the figures indicate the value corresponding to the quasi co-ownership interest.
The same shall apply hereinafter.

(Note 8) For “The Ritz-Carlton, Kyoto”, SHR owns 49% quasi co-ownership interest of trust beneficiary interest in real estate for the property
as of the end of the fiscal period under review. The figures indicate the value corresponding to the quasi co-ownership interest SHR
owns. The same shall apply hereinafter.

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 percentage
of total
property-related
operatingrevenue(%) (Note 5)

Book value
at the endof period(million yen)

Leasablearea(m2)

Leasedarea(m2)

Garden City Shinagawa
Gotenyama

70,45338,577.99

38,577.99

100.0

12.9

Gotenyama SH Building

49,88519,999.97

19,999.97

100.0

7.3

Hommachi Minami Garden City

42,84829,657.53

29,657.53

100.0

8.7

Hommachi Garden City
(Office building portion)(Note 6)

36,79517,006.94

17,006.94

100.0

6.1

Akasaka Garden City (Note 7)

28,775

12,472.80

12,472.80

100.0

4.6

The Ritz-Carlton, Kyoto(Note 8)

22,222

11,496.08

11,496.08

100.0

3.2

Hotel

Hommachi Garden City
(Hotel portion)(Note 6)

16,92518,092.98

18,092.98

100.0

2.8

Hotel

Esty Maison Ojima

8,409

9,905.97

9,603.89

97.0

1.7 Residence

Esty Maison Kinshicho II

8,035

9,469.65

9,292.67

98.1

1.5 Residence

Prime Maison Shirokanedai
Tower

7,984

6,772.89

6,334.54

93.5

1.6 Residence

292,335

173,452.80

172,535.39

99.5

50.3

Name ofreal estate, etc.

(Note 1)

Total

21

respective 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 the(Note 2)

(Note 3)

Occupancy
rate(%)(Note 4)

Usage
type
Officebuilding
Officebuilding
Officebuilding
Officebuilding
Officebuilding

―

22

3.

Details of Assets (Real Estate, etc.) in the Portfolio
The following table sets forth an overview of the properties owned by SHR as of the end of the fiscal period underreview.
Usage
type

Property
number(Note 1)

(Note 2)Type of ownership(Note 1)

Book value
at the end of
period(million yen)

Estimatedvalue at theend of period(million yen)

Name ofreal estate, etc.

Location

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

2,069

2,280

(Note 2)Type of ownership(Note 3)

Estimatedvalue at theend of period(million yen)

R-029

Esty Maison
Yotsuyasakamachi(Note 7)

R-030

Esty Maison Hakatahigashi

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,278

2,460

(Note 3)

Esty Maison Ginza

Chuo-ku, Tokyo

Real estate trust
beneficiary interests

6,493

6,940

R-031

Esty Maison Kamigofuku

Real estate trust
beneficiary interests

785

830

R-002

Esty Maison Azabunagasaka

Minato-ku, Tokyo

Real estate trust
beneficiary interests

Fukuoka-shi,
Fukuoka

1,768

1,870

R-032

Esty Maison Sangenjaya

Real estate trust
beneficiary interests

803

872

Shibuya-ku, Tokyo

Real estate trust
beneficiary interests

Setagaya-ku,
Tokyo

R-033

Prime Maison
Musashinonomori

Kodaira-shi,
Tokyo

Real estate trust
beneficiary interests

1,796

1,960

924

893

R-034

Prime Maison Higashisakura

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,448

1,590

Esty Maison Ebisu II

2,024

2,220

R-004

Esty Maison Ebisu

Shibuya-ku, Tokyo

Real estate trust
beneficiary interests

R-005

Esty Maison Kanda

Chiyoda-ku, Tokyo

Real estate trust
beneficiary interests

1,567

1,740

R-035

Prime Maison Kayabakoen

Nagoya-shi, Aichi

836

882

R-006

Esty Maison Kitashinjuku

Shinjuku-ku, Tokyo

Real estate trust
beneficiary interests

Real estate trust
beneficiary interests

1,550

1,710

R-036

Esty Maison Sangenjaya II

Setagaya-ku,
TokyoReal estate trust
beneficiary interests

767

837

R-007

Esty Maison
Asakusakomagata

Taito-ku, Tokyo

Real estate trust
beneficiary interests

2,112

2,370

R-037

Esty Maison Itabashi C6

Itabashi-ku,
TokyoReal estate trust
beneficiary interests

2,494

2,670

R-008

Esty Maison Kawasaki

Kawasaki-shi,
Kanagawa

Real estate trust
beneficiary interests

2,443

2,660

R-038

MAST Hakata(Note 8)

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,475

2,550

R-010

Esty Maison Kameido

Koto-ku, Tokyo

Real estate trust
beneficiary interests

1,518

1,760

R-039

Esty Maison Kinshicho

Sumida-ku,
TokyoReal estate trust
beneficiary interests

1,223

1,300

R-011

Esty Maison Meguro

Meguro-ku, Tokyo

Real estate trust
beneficiary interests

1,080

1,220

R-040

Esty Maison Musashikoganei

Koganei-shi,
Tokyo

Real estate trust
beneficiary interests

1,757

1,990

R-012

Esty Maison Sugamo

Toshima-ku, Tokyo

Real estate trust
beneficiary interests

1,603

1,750

R-041

Prime Maison Gokiso

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,877

2,050

2,996

3,030

885

1,010

R-042

Prime Maison Yuhigaoka

Osaka-shi, Osaka

Real estate trust
beneficiary interests

R-043

Prime Maison Kitatanabe

Osaka-shi, Osaka

Real estate trust
beneficiary interests

578

648

1,100

R-044

Prime Maison Momochihama

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

1,915

2,080

3,280

R-045

Esty Maison Akihabara

Taito-ku, Tokyo

Real estate trust
beneficiary interests

1,922

2,010

Esty Maison Sasazuka

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

3,397

3,500

6,101

6,650

R-013

Esty Maison Kyobashi

Osaka-shi, Osaka

Real estate trust
beneficiary interests

R-014

Esty Maison Hakuraku

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

902

982

R-015

Esty Maison Minamihorie

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,047

R-016

Esty Maison Gotanda(Note 4)

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

3,054

Residence

R-017

Esty Maison Oisendaizaka

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,751

R-018

Esty Maison
Shinagawa Seaside

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,125

2,360

R-047

Prime Maison Ginza East

Chuo-ku, Tokyo

Real estate trust
beneficiary interests

R-019

Esty Maison Minamiazabu

Minato-ku, Tokyo

Real estate trust
beneficiary interests

1,241

1,330

R-048

Prime Maison Takami

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,028

1,110

R-020

Esty Maison Tsukamoto

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,041

1,120

R-049

Prime Maison Yadaminami

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

865

864

R-021

Esty Maison Kawasaki II

Kawasaki-shi,
Kanagawa

Real estate trust
beneficiary interests

1,939

2,290

R-050

Prime Maison Teriha

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

1,200

1,290

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

1,641

1,650

2,820

R-046

R-022

Esty Maison Azabujuban

Minato-ku, Tokyo

Real estate trust
beneficiary interests

2,722

2,920

R-051

Esty Maison
Higashishirakabe

R-023

Esty Maison Itabashihoncho

Itabashi-ku, Tokyo

Real estate trust
beneficiary interests

908

991

R-052

Esty Maison Sengoku

Bunkyo-ku,
TokyoReal estate trust
beneficiary interests

1,337

1,380

R-024

Esty Maison Oizumigakuen

Nerima-ku, Tokyo

Real estate trust
beneficiary interests

773

838

R-053

Esty Maison Daizawa

Setagaya-ku,
TokyoReal estate trust
beneficiary interests

2,235

2,300

R-025

Esty Maison
Higashishinagawa

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,310

2,390

R-054

Esty Maison Togoshi

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,732

1,840

Esty Maison
Itabashikuyakushomae

Itabashi-ku, Tokyo

Real estate trust
beneficiary interests

2,468

2,690

R-055

Esty Maison Nishitemma

Osaka-shi, Osaka

Real estate trust
beneficiary interests

1,638

1,680

R-026

23

Location

Property
number

R-001

R-003

Residence

Name ofreal estate, etc.

Book value
at the end of
period(million yen)

Usage
type

R-027

(Note 5)

Esty Maison Musashikoyama

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,025

1,150

R-056

Esty Maison Shirokanedai

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

2,380

2,700

R-028

Esty Maison Sendagi(Note 6)

Bunkyo-ku, Tokyo

Real estate trust
beneficiary interests

684

760

R-057

Esty Maison Higashishinjuku

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

1,628

1,770

R-058

Esty Maison Motoazabu

Minato-ku, Tokyo

Real estate trust
beneficiary interests

1,516

1,610

24

Usagetype

Property
number(Note 1)

R-059
R-060
R-061

(Note 2)Meguro-ku, Tokyo

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

Real estate trust
beneficiary interests

846

Esty Maison
Musashikoyama II

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

1,004

Esty Maison Nakano

Nakano-ku, Tokyo

Real estate trust
beneficiary interests

1,829
992

Estimatedvalue at theend of period(million yen)

Usage
type

Property
numberName ofreal estate, etc.

(Note 1)

Location(Note 2)Type of ownership(Note 3)

870

R-089

Granmast Unomori

Yokkaichi-shi,
MieBook value
at the end of
period(million yen)

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

Real estate trust
beneficiary interests

789

825

Real estate trust
beneficiary interests

2,704

2,970

Esty Maison
Kohoku Tsunashima

Yokohama-shi,
Kanagawa

R-091

MAST LIFE Hino

Hino-shi, Tokyo

Real estate trust
beneficiary interests

1,331

1,410

1,030

R-092

Prime Maison
Yokohama Nihon-odori

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

4,707

4,790

1,060

R-090

1,860

R-062

Esty Maison Shinnakano

Nakano-ku, Tokyo

R-063

Esty Maison Nakanofujimicho

Nakano-ku, Tokyo

Real estate trust
beneficiary interests

961

1,020

R-093

Kobe Women’s Student
Housing

Kobe-shi, Hyogo

Real estate trust
beneficiary interests

5,462

6,260

R-064

Esty Maison Tetsugakudo

Nakano-ku, Tokyo

Real estate trust
beneficiary interests

1,125

1,180

R-094

Prime Maison Shibuya

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

2,398

2,610

Suginami-ku,
TokyoReal estate trust
beneficiary interests

1,135
2,419

2,550

Esty Maison Koenji

1,200

Prime Maison Hatsudai

Shibuya-ku,
TokyoReal estate trust
beneficiary interests

2,946

3,210

R-096

Esty Maison Uemachidai

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

1,075

1,060

R-095

R-066

Esty Maison Oshiage

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

R-067

Esty Maison Akabane

Kita-ku, Tokyo

Real estate trust
beneficiary interests

3,176

3,360

R-097

Esty Maison Kobe-sannomiya

Kobe-shi, Hyogo

Real estate trust
beneficiary interests

940

977

R-068

Esty Maison Oji

Kita-ku, Tokyo

Real estate trust
beneficiary interests

1,597

1,730

R-098

Prime Maison
Shirokane-takanawa

Minato-ku,
TokyoReal estate trust
beneficiary interests

4,825

5,270

R-069

Prime Maison Waseda

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

1,531

1,700

R-099

Prime Maison
Ichigayayamabushicho

Shinjuku-ku,
TokyoReal estate trust
beneficiary interests

4,144

4,220

Real estate trust
beneficiary interests

Real estate trust
beneficiary interests

639

673

R-070

Prime Maison Hatchobori

Chuo-ku, Tokyo

R-071

Prime Maison Jimbocho

Chiyoda-ku,
Tokyo

R-072

Prime Maison
Gotenyama East

Shinagawa-ku,
Tokyo

MAST LIFE Akihabara

Chiyoda-ku,
Tokyo

R-073

1,410

1,570

R-100

Esty Maison Morishita

Sumida-ku,
Tokyo

1,901

1,970

R-101

Prime Maison
Shirokanedai Tower

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

7,984

9,780

2,874

2,980

R-102

Prime Maison Otsuka

Real estate trust
beneficiary interests

3,716

4,330

Real estate trust
beneficiary interests

Toshima-ku,
Tokyo

545

569

R-103

Prime Maison Asakusabashi

Taito-ku, Tokyo

Real estate trust
beneficiary interests

1,689

1,960

2,387

2,440

R-104

Prime Maison Daikanyama

Meguro-ku,
TokyoReal estate trust
beneficiary interests

2,533

3,040

Prime Maison
Gotenyama West

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

3,423

4,180

Koto-ku, Tokyo

Real estate trust
beneficiary interests

5,980

6,930

Real estate trust
beneficiary interests
Real estate trust
beneficiary interests

Residence

Esty Maison Aoi

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

R-075

Esty Maison Yakuin

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

2,597

2,470

R-105

R-076

Esty Maison Kinshicho II

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

8,035

9,040

R-106

R-077

Esty Maison Ojima

Koto-ku, Tokyo

Real estate trust
beneficiary interests

8,409

9,610

R-107

Esty Maison Kokura

Real estate trust
beneficiary interests

1,081

1,040

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

Kitakyushu-shi,
Fukuoka

2,042

2,120

R-108

MAST Ijiri

Fukuoka-shi,
Fukuoka

Real estate trust
beneficiary interests

398

418

4,597

4,780

R-109

Prime Maison
Mitatsunamachi

Minato-ku,
TokyoReal estate trust
beneficiary interests

2,057

2,180

R-074

R-078

Prime Maison Fujimidai

Esty Maison Toyosu Residence(Note 10)

R-079

Esty Maison Tsurumai

Nagoya-shi, Aichi

Real estate trust
beneficiary interests

R-080

Prime Maison Morishita

Koto-ku, Tokyo

Real estate trust
beneficiary interests

1,866

2,020

R-110

Prime Maison Hongo

Real estate trust
beneficiary interests

2,623

2,690

R-081

Prime Maison Shinagawa

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

Bunkyo-ku,
Tokyo

1,913

2,040

R-111

Prime Maison Kuramae

Real estate trust
beneficiary interests

2,210

2,290

Real estate trust
beneficiary interests

Taito-ku,
Tokyo

3,081

3,060

R-112

Esty Maison Yokohamaaobadai(Note 11)

Yokohama-shi,
Kanagawa

Real estate trust
beneficiary interests

3,041

3,170

Real estate trust
beneficiary interests

677

661

Real estate trust
beneficiary interests

884

871

244,694

264,736

Prime Maison Odorikoen

Sapporo-shi,
Hokkaido

R-083

Prime Maison Minami 2-jo

Sapporo-shi,
Hokkaido

R-084

Prime Maison
Kamokamogawa

Sapporo-shi,
Hokkaido

Prime Maison Central Park

Fukuoka-shi,
Fukuoka

R-082

R-085
R-086

25

Esty Maison Toritsudaigaku

Location

Real estate trust
beneficiary interests

R-065

Residence

Name ofreal estate, etc.

(Note 9)MAST LIFE Yahiro

Real estate trust
beneficiary interests

1,851

1,770

R-113

Esty Maison Shizuoka Takajo

Real estate trust
beneficiary interests

Shizuoka-shi,
Shizuoka

1,216

1,120

R-114

GRAND MAST Hirose-dori

Real estate trust
beneficiary interests

Sendai-shi,
Miyagi

2,202

2,355

Subtotal

Sumida-ku, Tokyo

Real estate trust
beneficiary interests

1,847

1,970

Real estate trust
beneficiary interests

4,292

4,890

Real estate trust
beneficiary interests

1,031

1,040

R-087

Prime Maison Ebisu

Shibuya-ku,
Tokyo

R-088

Granmast Kanazawa
Nishiizumi

Kanazawa-shi,Ishikawa--

26

Usagetype

Officebuilding

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

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

Estimatedvalue at theend of period(million yen)

The following table sets forth the change in status of leasing of real estate, etc. owned by SHR.

(Note 3)O-001

Garden City Shinagawa
Gotenyama

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

70,453

89,100O-002

Gotenyama SH Building

Shinagawa-ku,
TokyoReal estate trust
beneficiary interests

49,88561,700O-003

Hommachi Minami Garden
City

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

42,84856,400O-004

Hommachi Garden City
(Office building portion)

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

36,79544,800O-005

HK Yodoyabashi Garden
Avenue(Note 12)

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

4,264

O-006

Hirokoji Garden Avenue

Nagoya-shi,
Aichi

O-007

Akasaka Garden City

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

239,233

295,550

Osaka-shi,
Osaka

Real estate trust
beneficiary interests

16,92518,000

Kyoto-shi, Kyoto

Real estate trust
beneficiary interests

22,222

22,442

R-007

Subtotal--

39,14840,442

R-008

Total

-

-

523,075

600,728

R-010

Subtotal
H-001
Hotel

Location

H-002

Hommachi Garden City
(Hotel portion)
The Ritz-Carlton, Kyoto

Usage
type

Property
numberName ofreal estate, etc.

6,360

R-001

Esty Maison Ginza

6,210

7,190

R-002

28,77530,000(Note 3)

R-003
R-004
R-005
R-006

(Note 1) “Property number” is the number assigned by property after classifying the properties owned by SHR by usage type, and the

R-011

letters 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)(Note 4)(Note 5)(Note 6)

“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 of 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, rounded
down to the nearest million yen.
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%)).
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%)).
For Esty Maison Sendagi, 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: 89,730/103,842 (orapproximately 86.4%)).
(Note 7) For Esty Maison Yotsuyasakamachi, SHR owns real estate trust beneficiary interests for the compartmentalized ownershipinterest to part of the exclusively-owned portions of the building and for the accompanying right of site (ratio of right of site:245,317/329,739 (or approximately 74.4%)).
(Note 8) MAST Hakata is a property on a leased land owned by the Urban Renaissance Agency and for which a general fixed-termleasehold right is established with a lease term of 50 years from December 1, 2002.
(Note 9) 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 10) 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 11) 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 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 theaccompanying right of site (ratio of right of site: 405,901/1,000,000 (or approximately 40.6%)).

27

11th fiscal period
12th fiscal period
From: Nov. 1, 2019
From: May 1, 2020
To: Apr. 30, 2020
To: Oct. 31, 2020
PropertyPropertyAs a
As a
relatedrelated
Total
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)

R-012
R-013
R-014
R-015
Residence

R-016
R-017
R-018
R-019
R-020
R-021
R-022
R-023
R-024
R-025
R-026
R-027
R-028
R-029

Esty Maison
Azabunagasaka
Esty Maison
Ebisu II
Esty Maison Ebisu
Esty Maison
Kanda
Esty Maison
Kitashinjuku
Esty Maison
Asakusakomagata
Esty Maison
Kawasaki
Esty Maison
KameidoEsty Maison
MeguroEsty Maison
SugamoEsty Maison
Kyobashi
Esty Maison
Hakuraku
Esty Maison
Minamihorie
Esty Maison
GotandaEsty Maison
Oisendaizaka
Esty Maison
ShinagawaSeasideEsty Maison
Minamiazabu
Esty Maison
Tsukamoto
Esty Maison
Kawasaki II
Esty Maison
Azabujuban
Esty Maison
Itabashihoncho
Esty Maison
Oizumigakuen
Esty Maison
Higashishinagawa
Esty Maison
Itabashikuyakush
omae
Esty Maison
Musashikoyama
Esty Maison
Sendagi
Esty Maison
Yotsuyasakamachi(Note 3)

1

95.4

178

1.2

1

96.9

176

1.2

1

93.4

50

0.3

1

95.1

50

0.3

1

98.1

57

0.4

1

95.7

59

0.4

1

86.4

22

0.2

1

100.0

22

0.2

1

91.1

46

0.3

1

95.5

44

0.3

1

97.6

47

0.3

1

92.3

45

0.3

1

93.5

65

0.5

1

95.4

67

0.5

1

100.0

79

0.5

1

96.0

80

0.5

1

93.9

55

0.4

1

96.8

53

0.4

1

97.5

32

0.2

1

100.0

31

0.2

1

94.7

49

0.3

1

97.3

49

0.3

1

97.3

88

0.6

1

97.0

87

0.6

1

93.0

31

0.2

1

93.0

30

0.2

1

98.2

34

0.2

1

98.4

33

0.2

1

92.4

90

0.6

1

91.7

94

0.6

1

96.0

77

0.5

1

97.1

81

0.5

1

91.9

65

0.5

1

93.3

65

0.4

1

100.0

36

0.2

1

98.1

34

0.2

1

97.9

39

0.3

1

99.0

38

0.3

1

99.2

63

0.4

1

96.7

64

0.4

1

97.5

68

0.5

1

98.7

65

0.4

1

100.0

30

0.2

1

98.4

30

0.2

1

92.9

26

0.2

1

98.3

26

0.2

1

96.5

71

0.5

1

95.8

73

0.5

1

95.2

79

0.5

1

95.1

77

0.5

1

97.6

32

0.2

1

94.6

30

0.2

1

100.0

24

0.2

1

100.0

22

0.2

1

96.4

60

0.4

1

96.4

60

0.4

28

Usagetype

Property
numberName ofreal estate, etc.

11th fiscal period
12th fiscal period
From: Nov. 1, 2019
From: May 1, 2020
To: Apr. 30, 2020
To: Oct. 31, 2020
PropertyPropertyAs a
As a
relatedrelated
Total
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)

R-030
R-031
R-032
R-033
R-034
R-035
R-036
R-037
R-038
R-039
R-040
R-041
R-042
R-043
R-044
Residence

R-045
R-046
R-047
R-048
R-049
R-050
R-051
R-052
R-053
R-054
R-055
R-056
R-057

29

Esty Maison
Hakatahigashi
Esty Maison
Kamigofuku
Esty Maison
Sangenjaya
Prime Maison
Musashinonomori
Prime Maison
Higashisakura
Prime Maison
Kayabakoen
Esty Maison
Sangenjaya II
Esty Maison
Itabashi C6
MAST Hakata
Esty Maison
Kinshicho
Esty Maison
Musashikoganei
Prime Maison
GokisoPrime 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

Usage
type

Property
numberName ofreal estate, etc.

(Note 3)(Note 3)

1

96.3

86

0.6

1

97.7

85

0.6

R-060

1

98.5

28

0.2

1

97.0

29

0.2

R-061

1

94.5

25

0.2

1

94.5

24

0.2

R-062

1

97.6

63

0.4

1

95.2

64

0.4

R-063

1

94.4

54

0.4

1

94.5

53

0.4

R-064

1

100.0

28

0.2

1

100.0

29

0.2

R-065

1

92.2

23

0.2

1

100.0

24

0.2

R-066

1

93.4

82

0.6

1

91.9

76

0.5

R-067

1

100.0

93

0.6

1

100.0

93

0.6

R-068

1

100.0

37

0.3

1

95.8

36

0.2

R-069

1

97.1

55

0.4

1

100.0

55

0.4

R-070

1

91.2

65

0.4

1

92.7

61

0.4

R-071

1

96.4

29

0.2

1

92.3

29

0.2

R-072

1

100.0

23

0.2

1

100.0

23

0.2

1

100.0

73

0.5

1

100.0

69

0.5

1

96.2

58

0.4

1

98.7

58

0.4

1

96.3

89

0.6

1

98.0

91

0.6

1

99.2

180

1.2

1

97.7

177

1.2

1

96.7

32

0.2

1

100.0

34

0.2

1

84.6

28

0.2

1

96.2

26

0.2

1

100.0

51

0.4

1

100.0

51

0.4

1

100.0

46

0.3

1

100.0

46

0.3

1

98.7

39

0.3

1

94.3

37

0.3

1

96.5

61

0.4

1

98.8

63

0.4

1

100.0

50

0.3

1

97.9

50

0.3

1

95.5

51

0.4

1

100.0

50

0.3

1

96.1

67

0.5

1

98.8

70

0.5

1

91.2

47

0.3

1

97.9

44

0.3

R-058

Esty Maison
Motoazabu

1

100.0

43

0.3

1

100.0

41

0.3

R-059

Esty Maison
Toritsudaigaku

1

94.9

23

0.2

1

90.1

23

0.2

11th fiscal period
12th fiscal period
From: Nov. 1, 2019
From: May 1, 2020
To: Apr. 30, 2020
To: Oct. 31, 2020
PropertyPropertyAs a
As a
relatedrelated
Total
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)

R-073
R-074
Residence R-075
R-076
R-077
R-078
R-079
R-080
R-081
R-082
R-083
R-084
R-085
R-086
R-087
R-088
R-089

Esty Maison
Musashikoyama II
Esty Maison
NakanoEsty Maison
Shinnakano
Esty Maison
Nakanofujimicho
Esty Maison
Tetsugakudo
Esty Maison
KoenjiEsty Maison
Oshiage
Esty Maison
AkabaneEsty Maison Oji
Prime Maison
WasedaPrime Maison
Hatchobori
Prime Maison
JimbochoPrime Maison
Gotenyama East
MAST LIFE
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
MAST LIFE
YahiroPrime Maison
Ebisu
Granmast
Kanazawa
Nishiizumi
Granmast
Unomori(Note 3)

1

94.7

29

0.2

1

100.0

30

0.2

1

98.7

53

0.4

1

100.0

51

0.3

1

100.0

30

0.2

1

98.0

28

0.2

1

100.0

29

0.2

1

97.8

30

0.2

1

95.2

34

0.2

1

98.5

35

0.2

1

94.6

33

0.2

1

98.5

33

0.2

1

96.5

71

0.5

1

95.5

71

0.5

1

95.8

97

0.7

1

98.8

96

0.7

1

97.8

49

0.3

1

98.9

48

0.3

1

95.4

43

0.3

1

93.9

42

0.3

1

91.9

38

0.3

1

94.3

36

0.2

1

100.0

52

0.4

1

98.6

52

0.4

1

100.0

86

0.6

1

88.8

81

0.5

1

100.0

15

0.1

1

100.0

15

0.1

1

89.2

69

0.5

1

86.6

67

0.5

1

97.3

74

0.5

1

97.3

75

0.5

1

96.6

225

1.5

1

98.1

221

1.5

1

96.4

246

1.7

1

97.0

244

1.7

1

92.6

71

0.5

1

92.3

67

0.5

1

100.0

155

1.1

1

100.0

155

1.1

1

96.5

60

0.4

1

98.8

55

0.4

1

100.0

57

0.4

1

97.4

59

0.4

1

89.9

110

0.8

1

87.5

110

0.7

1

99.1

73

0.5

1

96.5

72

0.5

1

99.0

47

0.3

1

90.8

46

0.3

1

97.2

88

0.6

1

100.0

88

0.6

1

100.0

55

0.4

1

100.0

56

0.4

1

97.2

111

0.8

1

95.0

113

0.8

1

100.0

40

0.3

1

100.0

39

0.3

1

100.0

26

0.2

1

100.0

27

0.2

30

Usagetype

11th fiscal period
12th fiscal period
From: Nov. 1, 2019
From: May 1, 2020
To: Apr. 30, 2020
To: Oct. 31, 2020
PropertyPropertyAs a
As a
relatedrelated
Total
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)

Name ofreal estate, etc.

R-090

Esty Maison
KohokuTsunashima

1

100.0

78

0.5

1

100.0

78

0.5

O-001

R-091

MAST LIFE Hino

1

98.4

49

0.3

1

98.6

48

0.3

O-002

1

94.9

142

1.0

1

99.1

138

0.9

1

100.0

221

1.5

1

100.0

222

1.5

1

90.2

64

0.4

1

88.6

59

0.4

1

95.1

81

0.6

1

95.1

79

0.5

1

94.7

32

0.2

1

97.7

34

0.2

1

94.1

31

0.2

1

98.4

29

0.2

1

95.4

131

0.9

1

95.7

124

0.8

(Note 3)

R-092
R-093
R-094
R-095
R-096
R-097
R-098
R-099
R-100
R-101
Residence

R-102
R-103
R-104
R-105
R-106
R-107
R-108
R-109
R-110
R-111
R-112
R-113
R-114
Subtotal

31

Usage
type

Property
numberPrime Maison
Yokohama Nihonodori
Kobe Women’sStudent Housing
Prime Maison
ShibuyaPrime Maison
Hatsudai
Esty Maison
Uemachidai
Esty Maison Kobesannomiya
Prime Maison
Shirokanetakanawa
Prime Maison
Ichigayayamabush
icho
Esty Maison
Morishita
Prime Maison
Shirokanedai
Tower
Prime Maison
OtsukaPrime Maison
Asakusabashi
Prime Maison
Daikanyama
Prime Maison
Gotenyama West
Esty Maison
Toyosu Residence
Esty Maison
KokuraMAST Ijiri
Prime Maison
Mitatsunamachi
Prime Maison
Hongo
Prime Maison
Kuramae
Esty Maison
Yokohamaaobadai
Esty Maison
Shizuoka Takajo
GRAND MAST
Hirose-dori

Property
numberName ofreal estate, etc.

(Note 3)11th fiscal period
12th fiscal period
From: Nov. 1, 2019
From: May 1, 2020
To: Apr. 30, 2020
To: Oct. 31, 2020
PropertyPropertyAs a
As a
relatedrelated
Total
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)

99.9

1,776

12.2

1

100.0

1,906

12.9

1

100.0

1,088

7.5

1

100.0

1,088

7.3

1

100.0

1,261

8.6

1

100.0

1,288

8.7

1

100.0

903

6.2

1

100.0

903

6.1

1

100.0

149

1.0

1

100.0

139

0.9

1

100.0

213

1.5

1

100.0

215

1.5

1

100.0

632

4.3

1

100.0

681

4.6

2

100.0

6,025

41.3

3

100.0

6,223

42.0

1

100.0

410

2.8

1

100.0

410

2.8

1

100.0

357

2.4

1

100.0

475

3.2

Subtotal

2

100.0

767

5.3

2

100.0

886

6.0

Total

16

97.6

14,590

100.0

17

97.7

14,826

100.0

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

1

87.5

109

0.7

1

93.2

99

0.7

1

100.0

18

0.1

1

100.0

19

0.1

1

96.7

237

1.6

1

93.5

232

1.6

1

93.5

116

0.8

1

94.9

111

0.8

1

91.4

52

0.4

1

93.8

48

0.3

1

88.7

72

0.5

1

78.4

62

0.4

1

96.3

121

0.8

1

88.2

118

0.8

1

96.9

475

3.3

1

98.0

470

3.2

1

89.9

33

0.2

1

88.8

31

0.2

1

100.0

13

0.1

1

100.0

13

0.1

1

90.1

49

0.3

1

89.7

49

0.3

1

88.6

66

0.5

1

90.0

67

0.5

(Note 3)

1

95.7

61

0.4

1

93.1

58

0.4

(Note 4)

1

100.0

86

0.6

1

100.0

86

0.6

1

100.0

11

0.1

1

100.0

23

0.2

1

100.0

1

0.0

1

100.0

29

0.2

13

96.6

7,797

53.4

13

96.7

7,716

52.0

Hotel

(Note 1)

(Note 2)

(Note 3)

1

O-003
Officebuilding

Garden City
Shinagawa
Gotenyama
Gotenyama SH
Building
HommachiMinami 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 agreements
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. Furthermore, 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 17, 16, 7,8 and 18, respectively as of the end of the 11th fiscal period (from Nov. 1, 2019 to Apr. 30, 2020)
and 17, 16, 8, 7 and 18 respectively as of the end of the 12th fiscal period (from May. 1, 2020 to Oct. 31, 2020).

“Occupancy rate” refers to the ratio of leased area to leasable area of each property as of the end of each fiscal period, rounded to
the nearest first decimal place. The figures indicated in the “Subtotal” columns are the ratio of the subtotal of leased 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 sum total of leased area of each property to the sum total of leasable area of each property,
as the occupancy rate of the entire portfolio. The both figures have been rounded to the nearest first decimal place.

“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.
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.

32

4.

Capital expenditures for property

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

1.
5.

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

6.

Name of real estate, etc.
(location)

Details of Investment Securities
Not applicable.

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

Transaction other thanmarket transaction

Transaction other thanmarket transaction

TypeInterest rate swap transaction(Under which floating interest
rates are receivable and fixedinterest rates are payable)
Interest rate swap transaction(Under which floating interest
rates are receivable and fixedinterest rates are payable)
Total

Contract amount, etc.
Fair value(thousand yen)(Note 1)(thousand yen)Amount(Note 2)due after 1 year
43,280,000

28,980,000(257,812)

110,661,000

105,311,000－(Note 3)

153,941,000

134,291,000

ሺ257,812)

Prime Maison Fujimidai(Fujimidai, Chikusa-ku, Nagoyashi, Aichi)
Prime Maison Gokiso(Ayuchitori, Showa-ku, Nagoya-shi,
Aichi)
Prime Maison Tsukamoto(Tsukamoto, Yodogawa-ku, Osakashi, Osaka)(Note)

Financial Instruments.

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” 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. and infrastructure assets, etc. in the portfolio.

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

Scheduled period
From: June 2020
To: November 2020
From: June 2021
To: October 2021
From: June 2021
To: October 2021

Scheduled amount (million yen)(Note)
Payment for
Total
the fiscal
Amountamount period under already paid
review
135

55

―

109

―

―

89

―

―

“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 the 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.

(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

8.

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.

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 591 million
yen and, together with 291 million yen of repair expenses charged to expenses in the fiscal period under review,
work amounting to 882 million yen was implemented.
Name of real estate, etc.
(location)

PurposeMAST Hakata
Large-scale repair(Hakataekimae, Hakata-ku, Fukuoka-shi, Fukuoka)
Other capital expenditures
Total

3.

PeriodFrom: February 2020
To: October 2020

Payment amount(million yen)
274
317
591

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.

9.

33

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.

34

Condition of expenses and debts
1.

Condition of investment transactions

Details of Expenses Pertaining to Management, etc.

Item
Asset management fee(Unit: thousand yen)

11th fiscal period
From: Nov. 1, 2019
To: Apr. 30, 2020

12th fiscal period
From: May. 1, 2020
To: Oct. 31, 2020
984,709

Asset custody fee

10,295

10,367Administrative service fees

47,87948,244

Directors’ compensations

3,600

3,600

266,602250,292

1,343,592

1,297,213

Total

Status, etc. of Sale and Purchase of Real Estate, etc., Asset-Backed Securities, etc., Infrastructure Assets, etc.
and Infrastructure-Related Assets
Not applicable.

1,015,215

Other expenses

1.

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)
Not applicable.
(2) Others
Concerning transactions requiring investigations into the value, etc. of specified assets pursuant to Article 201,

Paragraph 2 of the Investment Trusts Act, Akasaka Audit LLC has conducted the investigations pursuant toPractical Guidelines for Specialized Operations 4460 “Practical Guidelines for Agreed-Upon Procedures

Pertaining to Investigation into the Value, etc. of Specified Assets of Investment Trusts and Investment
Corporations” published by The Japanese Institute of Certified Public Accountants, and SHR has been notified of
the results of the investigations.

The transactions subject to investigations in the fiscal period under review were two interest rate swap

transactions. For the transactions, investigations into the name of the counterparty to the transaction, the typeof financial instrument or financial indicator involved, the transaction period, other matters concerning thecontent of the over-the-counter transaction of derivatives, etc. have been entrusted.

35

36

Other infomation

4. Status of Transactions with Interested Persons, etc.(Note 1)(1) Status of Transactions
Not applicable.

1. Notice(1) General Meeting of Unitholders(2) Amount of Commission Fee, etc.

Category

Total amountof commissionfee, etc. (A)(thousand yen)Management fee(Note 2)996,927

During the fiscal period under review, SHR held no General Meeting of Unitholders.

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.

417,618

41.9

Sekisui House Real Estate Chubu, Ltd.

57,445

5.8

Sekisui House GM Partners, Ltd.

46,824

4.7

Sekisui House, Ltd.

21,8292.2

Sekisui House Real Estate Kyushu, Ltd.

19,244

1.9

Sekisui House Real Estate Kansai, Ltd.

6,376

0.6

Sekisui House Real Estate Tohoku, Ltd.

1,050

0.1

294

0.0

SH Hotel Systems Ltd.

(2) 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.

(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 follows.
The figures have been rounded down to the nearest thousand yen.

5.

37

Sekisui House, Ltd.

281,710 thousand yen

Sekisui House Real Estate Tokyo, Ltd.

227,836 thousand yen

Sekisui House Real Estate Chubu, Ltd.

66,241 thousand yen

Sekisui House Real Estate Kyushu, Ltd.

30,507 thousand yen

Sekisui House GM Partners, Ltd.

26,976 thousand yen

Sekisui House Real Estate Kansai, Ltd.

5,194 thousand yen

Sekisui House Real Estate Tohoku, Ltd.

535 thousand yen

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.

38

<MEMO>

Financial Section (Audited)

Contents
Financial Statements

39

Balance Sheet

41

Statement of Income and Retained Earnings

43

Statement of Changes in Net Assets

44

Statement of Cash Distributions

46

Statement of Cash Flows

47

Notes to Financial Statements

48

Supplementary Schedules

64

Independent Auditor’s Report75

40

(Thousands of yen)

11th Fiscal Period

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

11th Fiscal Period(As of April 30, 2020)

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
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

41

12th Fiscal Period(As of October 31, 2020)

8,712,829
17,828,103
193,901
219,243
2,922(1,726)
26,955,273

9,424,900
19,008,771
184,706
226,584449(1,805)28,843,605

174,333,341(12,740,101)
161,593,240
1,571,922(184,087)
1,387,834
2,217,849(183,002)
2,034,846
153
(57)
96
309,530(46,432)
263,097
357,199,586－
522,478,701

174,776,368(15,046,546)
159,729,822
1,571,922(215,642)
1,356,279
2,236,271(233,151)
2,003,120
153
(96)
57
439,351(77,651)
361,700
357,199,586
61,142520,711,708

2,450,322
4,517
2,454,840

2,424,896
4,010
2,428,906

790,700
544,044482,274
1,817,018
526,750,560

790,700
544,128
467,324
1,802,153
524,942,768

105,431
177,554282,986
553,988,820

146,200
134,941
281,142554,067,516

Liabilities
Current liabilities
Operating accounts payable
Short-term loans payable
Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Derivatives liabilities
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term loans payable
Tenant leasehold and security deposits in trust
Derivatives liabilities
Other
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
SurplusCapital surplus
Voluntary reserve
Reserve for reduction entry
Reserve for temporary difference adjustments
Total voluntary reserve
Unappropriated retained earnings
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets (Note 4)
Total liabilities and net assets

12th Fiscal Period(As of April 30, 2020)(As of October 31, 2020)

800,601
13,100,000
28,050,000
1,169,454
185,218586
474,411430,486
55,983
140,795
44,407,537

1,030,204－
29,710,000
1,129,034
186,325585
257,594
707,223
29,558109,267
33,159,794

24,500,000
184,292,000
14,074,235
284,954
106,366
223,257,555
267,665,093

32,500,000
187,732,000
14,127,690
228,253
60,558234,648,502
267,808,297

149,210,081

149,210,081

128,598,415

128,598,415

775,495
1,089,341
1,864,837
6,991,331
137,454,583
286,664,665

746,169
969,369
1,715,539
6,992,995
137,306,950
286,517,031(340,937)(340,937)
286,323,727
553,988,820(257,812)(257,812)
286,259,219
554,067,516

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

42

(2) Statement of Income and Retained Earnings(Thousands of yen)

11th Fiscal Period

12th Fiscal Period

to April 30, 2020)

to October 31, 2020)(From November 1, 2019

Operating revenue
Rent revenue – real estate (Note 5)
Other lease business revenue (Note 5)
Total operating revenue
Operating expenses
Expenses related to rent business (Note 5)
Asset management fees
Asset custody fees
Administrative service fees
Directors’ compensation
Provision of allowance for doubtful accounts
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distribution payable
Refunded consumption taxes
Other
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Borrowing related expenses
Amortization of investment unit issuance costs
Amortization of investment corporation bond issuance costs
Other
Total non-operating expenses
Ordinary income
Income before income taxes
Income taxes – current
Total income taxes
Net income
Unappropriated retained earnings
The accompanying notes are an integral part of these financial statements.

(3) Statement of Changes in Net Assets
11th Fiscal Period (From November 1, 2019 to April 30, 2020)

14,196,787
393,545
14,590,332

14,410,200
416,488
14,826,689

5,372,698
1,015,215
10,29547,8793,600
947
265,655
6,716,291
7,874,041

5,660,925
984,709
10,367
48,2443,600
146250,145
6,958,139
7,868,549

119
1,238
5,468
607
7,433

130
898
9,375
－
10,403

659,469
61,150105,456
49,9739,880
3,607
889,538
6,991,936
6,991,936
605
605
6,991,331
6,991,331

662,166
62,894
102,079
42,613
11,642
3,956
885,352
6,993,600
6,993,600
605
605
6,992,995
6,992,995

Unitholders’ equity
Surplus
Unitholders’capitalBalance at beginning of period

Voluntary reserve
CapitalsurplusReserve for
reduction entry

Reserve fortemporarydifference
adjustments－

1,454,196

149,210,081 128,598,415

Unappropriatedretainedearnings

Total
voluntary
reserve
1,454,196

7,405,454

775,495(775,495)(364,855)

364,855

Changes of items during period
Provision of reserve for reduction
entry
Reversal of reserve for temporary
difference adjustments

775,495(364,855)

Distribution from surplus(6,994,814)

Net income

6,991,331

Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period (Note 6)－775,495(364,855)

410,640(414,123)

149,210,081 128,598,415

775,495

1,089,341

1,864,837

6,991,331－(Thousands of yen)

Valuation and translation
adjustments

Unitholders’ equity
Surplus

Total
Deferred gains valuation andtranslation
or losses on
adjustments
hedgesTotal
net assets

Total
surplusTotal
unitholders’equity137,458,066

286,668,148

－

－

－

－

－

－

Distribution from surplus(6,994,814)(6,994,814)(6,994,814)

Net income

6,991,331

6,991,331

6,991,331

Balance at beginning of period(475,678)(475,678)

286,192,469

Changes of items during period
Provision of reserve for reduction
entry
Reversal of reserve for temporary
difference adjustments

Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period (Note 6)

43(Thousands of yen)

(From May 1, 2020

134,740

134,740

134,740(3,482)(3,482)

134,740

134,740

131,257

137,454,583

286,664,665(340,937)(340,937)

286,323,727

44

12th Fiscal Period (From May 1, 2020 to October 31, 2020)(Thousands of yen)

Item

Unitholders’ equity
Surplus
Unitholders’capitalBalance at beginning of period

Voluntary reserve
CapitalsurplusReserve for
reduction entry

Reserve fortemporarydifference
adjustments

775,495

1,089,341

149,210,081 128,598,415

Unappropriatedretainedearnings

Total
voluntary
reserve
1,864,837

6,991,331(29,325)

29,325(119,972)

119,972

Changes of items during period
Reversal of reserve for reduction
entry
Reversal of reserve for temporary
difference adjustments(29,325)(119,972)

Distribution from surplus(7,140,628)

Net income

6,992,995

Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period (Note 6)－(29,325)(119,972)(149,297)

1,664

149,210,081 128,598,415

746,169

969,369

1,715,539

6,992,995－(Thousands of yen)

Valuation and translation
adjustments

Unitholders’ equity
SurplusTotal
unitholders’equityTotal
surplus
Balance at beginning of period

Total
Deferred gains valuation andtranslation
or losses on
adjustments
hedges(340,937)(340,937)

Total
net assets

286,664,665

286,323,727

－

－

－

－

－

－

Distribution from surplus(7,140,628)(7,140,628)(7,140,628)

Net income

6,992,995

6,992,995

6,992,995

Changes of items during period

Net changes of items other thanunitholders’ equity
Total changes of items during period
Balance at end of period (Note 6)

45

83,125

83,125

83,125(147,633)(147,633)

83,125

83,125(64,507)

137,306,950

286,517,031(257,812)(257,812)

286,259,219

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

Ⅰ. Unappropriated retained earnings
Ⅱ. Reversal of voluntary reserve

Reversal of reserve for reduction entry
Reversal of reserve for temporary difference
adjustments (Note 7)
Ⅲ. Cash distributions[Cash distributions per unit]
Ⅳ. Retained earnings carried forward

Method for calculating cash distributions

11th Fiscal Period

12th Fiscal Period(From November 1, 2019

(From May 1, 2020

to April 30, 2020)

to October 31, 2020)

6,991,331,249yen

6,992,995,750yen

29,325,584yen

96,744,491yen

119,972,057yen

136,661,969yen

7,140,628,890yen

7,226,402,210yen[1,665yen]－yen[1,685yen]－yen

The basic policy is to distributein excess of an amountThe basic policy is to distributein excess of an amountfor distribution of SHR
provided in Article 67-15,
Paragraph 1 of the Act onfor distribution of SHR
provided in Article 67-15,
Paragraph 1 of the Act onequivalent to 90% of theamount of earnings available

Special Measures Concerning

Taxation as set forth in Article
46, Paragraph 1, Item 2 of the
Articles of Incorporation ofSHR.

equivalent to 90% of theamount of earnings available

Special Measures Concerning

Taxation as set forth in Article
46, Paragraph 1, Item 2 of the
Articles of Incorporation of
SHR.

Based on such policy, SHR
decided to distribute
7,140,628,890 yen, which isBased on such policy, SHR
decided to distribute
7,226,402,210 yen, which isof the reserve for temporary
difference adjustments(119,972,057 yen) and areversal of the reserve forof the reserve for temporary
difference adjustments(136,661,969yen) and areversal of the reserve forobtained by adding a reversal

137,454,583

Reversal of reserve for reduction
entry
Reversal of reserve for temporary
difference adjustments(4) Statement of Cash Distributions

reduction entry (29,325,584
yen) to unappropriatedretained earnings, as
distribution of earnings.

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

obtained by adding a reversal

reduction entry (96,744,491
yen) to unappropriatedretained earnings, as
distribution of earnings.

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

46

(5) Statement of Cash Flows
11th 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
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
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
Proceeds from issuance of investment corporation bonds
Redemption of investment corporation bonds
Dividends paid
Net cash provided by (used in) financing activities
N e t i n c r e a s e ( d e c r e a s e ) i n cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period (Note 8)
The accompanying notes are an integral part of these financial statements.

47(From November 1, 2019
to April 30, 2020)(Thousands of yen)

12th Fiscal Period(From May 1, 2020
to October 31, 2020)

6,991,936
2,414,284
9,880
49,973(119)
720,6202,420
150,619(20,327)(45,530)(21,310)(37,507)474,411(1,419)(97,429)
10,590,501
119(820,599)(607)
9,769,414

6,993,600
2,445,568
11,642
42,613(130)725,060
9,195－(7,341)(83)
111,086(38,520)(216,816)
276,737
520
10,353,133
130(799,257)(606)
9,553,399(6,730,228)－
382,866(145,271)(78,645)(6,571,279)(533,896)(228)
232,502(179,046)
14,949(465,719)

5,700,000(5,600,000)
21,392,000(20,792,500)
6,950,303(2,000,000)(6,992,986)(1,343,183)
1,854,952
24,685,979
26,540,932－(13,100,000)
20,200,000(15,100,000)
7,947,587－(7,142,527)(7,194,940)
1,892,739
26,540,932
28,433,672( 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, and it acquired three properties (total acquisition cost of¥114.3 billion) 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 thedissolved 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“Asset Management Company”).
Sekisui House Asset Management, Ltd., previously called Sekisui House Investment Advisors, Ltd., carried out anabsorption-type merger 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 Exchange Act, the Investment Trust Act, the Companies Act and the related regulations, which are
different in certain respects as to the application and disclosure requirements of International Financial ReportingStandards.
The accompanying financial statements are basically a translation of the financial statements of SHR, which wereprepared in accordance 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 morefamiliar to readers outside Japan. In addition, the notes to the financial 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 statements and notes
thereto do not necessarily agree with the sum of the individual account balances.
3. Summary of Significant Accounting Policies(1)Property, plant and equipment (including assets in trust)
1. Method of depreciation
Depreciation is calculated using the straight-line method.
and amortization of nonThe useful lives of principal property, plant and equipment are as follows:
current assets
Buildings
3-69 years
Structures
6-52 years
Machinery and equipment
8-61 years
Vehicles in trust
2 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 theremaining life of each fixed-term land lease contract.
(3)Long-term prepaid expenses
Long-term prepaid expenses are amortized utilizing the straight-line method.
2. Accounting for(1) Investment corporation bond issuance costs
deferred assets
Investment corporation bond issuance costs are amortized utilizing thestraight-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).

48

3. Standards for recording
allowance

4. Standards forrevenue and expense
recognition

5. Method of hedge
accounting

6.

Scope of funds in thestatement of cash flows

Allowance for doubtful accounts
To prepare for possible losses arising from default on receivables, theestimated uncollectable amount is recorded by examining collectability on acase-by-case basis for doubtful and other specific receivables.
(1)Revenue recognition
Rent revenue
SHR generally recognizes rent revenue,
including fixed rent revenues, variable rent
revenues and common area charges, on an
accrual basis over the term of each leaseagreement.
Other lease business
Other lease business revenue is recognizedrevenuein accordance with Japanese GAAP, typicallyas amounts under the relevant agreements
become due.
(2)Accounting for property taxes
In accounting for property tax, city planning tax, depreciable asset tax, etc. onreal estate, etc., of the tax amount assessed and determined, the amountcorresponding to the applicable calculation period is expensed as expenses
related to rent business.
Reimbursement of property tax, paid to the seller upon the acquisition of realestate or trust beneficiary interests of real estate as assets in trust, is notrecognized as expenses related to rent business in the corresponding fiscal
period but included in the acquisition cost of the property.
Property taxes capitalized as a part of the acquisition cost amounted to 12,322
thousand yen for the 11th fiscal period, and there were no property taxes
capitalized for the 12th fiscal period.
(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 management policy.
(4)Method for assessing the effectiveness of hedging
Interest rate swaps meet the criteria for the special accounting treatment andan assessment of 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. Anyamounts received under interest rate swaps subject to such accounting
treatment are not recognized as income on the accompanying statements ofincome 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 cashon hand and cash 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 fromthe date of acquisition, which are readily convertible to cash and bear only an
insignificant risk of price fluctuation.

7.

Other significant mattersserving as basis for
preparation offinancial statements(1)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, allaccounts of assets and liabilities within assets in trust as well as all accountsof revenue and expenses from the assets in trust are recognized in the relevant
account items on the balance sheet and the 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.
1ሻ Cash and deposits in trust2ሻ Buildings in trust; Structures in trust; Machinery and equipment in trust;Tools, furniture and fixtures in trust; Land in trust; Construction inprogress in trust; Leasehold rights in trust
3ሻ Tenant leasehold and security deposits in trust(2)Accounting for consumption tax, etc.
Consumption tax and local consumption tax are excluded from the correspondingtransaction amounts.

4. Accounting Standards Issued but Not Yet Effective
New accounting standards and implementation guidance issued but not yet effective are as follows:・ “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan (ASBJ) Statement
No. 29 issued on March 31, 2020)
・ “Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30
issued on March 31, 2020)(1) Overview
The International Accounting Standards Board (IASB) and the Financial Accounting Standards Board(FASB) in the United States have jointly developed comprehensive accounting standards for revenue
recognition and issued “Revenue from Contracts with Customers” (IFRS 15 (IASB) and Topic 606 (FASB)) in

May 2014. Given the situation where IFRS 15 will be applied from fiscal years beginning on or after January 1,
2018 and that Topic 606 will be applied from fiscal years beginning after December 15, 2017, the ASBJ has
developed comprehensive accounting standards for revenue recognition and issued them together with theimplementation guidance.

The basic policy of the ASBJ when it developed the accounting standards for revenue recognition was tospecify the accounting standards, incorporating the basic principles of IFRS 15 as a starting point, from theperspective of comparability between financial statements, which is one of the benefits of maintaining
compatibility with IFRS 15. The basic policy also stipulates that if there is an item to which consideration

should be given, such as practices that have been conducted thus far in Japan, alternative treatments will be
added to the extent to which comparability is not impaired.
(2) Scheduled date of application

The accounting standards will be applied from the beginning of the fiscal period ending October 31, 2021.

(3) Impact of applying the accounting standards
The impact of applying “Accounting Standard for Revenue Recognition” and its guidance on SHR’s financial
statements is currently under evaluation.

・ “Accounting Standard for Fair Value Measurement” (ASBJ Statement No. 30 issued on July 4, 2019)

・ “Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No. 31
issued on July 4, 2019)
・ “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ GuidanceNo. 19 issued on March 31, 2019)49

50

(1) Overview

The IASB and the FASB have established detailed guidance regarding fair value measurement (IFRS 13“Fair Value Measurement” (IASB) and Topic 820“Fair Value Measurement” (FASB)). The ASBJ has
considered the guidance regarding fair value of financial instruments and disclosure in order to improve thecomparability with such international accounting standards, and issued “Accounting Standard for Fair Value
Measurement” and “Implementation Guidance on Accounting Standard for Fair Value Measurement.”(2) Scheduled date of application
The accounting standards will be applied from the beginning of the fiscal period ending October 31, 2021.
(3) Impact of applying the accounting standards
The impact of applying the “Accounting Standard for Fair Value Measurement” and its guidance on SHR’s

5. Notes to Balance Sheet*1. Minimum net assets designated in Article 67-4 of the Investment Trust Act(Thousands of yen)

12th Fiscal Period

11th Fiscal Period(As of April 30, 2020)(As of October 31, 2020)

50,00050,000*2. 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)financial statements is currently under evaluation.

11th Fiscal Period

12th Fiscal Period(As of April 30, 2020)

・“Accounting Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections”(ASBJ Statement No. 24 issued on March 31, 2020)(1) Overview

The ASBJ’s Standards Advisory Council recommended that the ASBJ consider enhancing disclosures fornotes relating to “accounting policies and methods adopted in the cases where the relevant accounting
standards were not clear.” In response to such recommendations, the ASBJ issued the revised “Accounting

Total amount of commitment line
Balance executed as loans
Unused line of credit

・“Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No. 31 issued on March
31, 2020)(1) Overview
Paragraph 125 of International Accounting Standard 1 (IAS 1), “Presentation of Financial Statements,”(issued by the IASB in 2003) requires disclosure of information about the “assumptions the entity makes about

the future, and other major sources of estimation uncertainty.” In this regard, there has been a request that the
major sources of estimation uncertainty should be disclosed in the notes to financial statements underJapanese GAAP to provide useful information to users of financial statements. In response to this request, the
ASBJ developed and issued “Accounting Standard for Disclosure of Accounting Estimates.”

15,000,000

15,000,000－－

15,000,000

15,000,000*3. Matters concerning accounting for reserve and reversal of reserve for temporary difference adjustments(Thousands of yen)Standard for Accounting Policy Disclosures, Accounting Changes and Error Corrections.”(2) Scheduled date of application
The accounting standards will be applied from the end of the fiscal period ending April 30, 2021.

(As of October 31, 2020)

11th Fiscal Period

12th Fiscal Period(As of April 30, 2020)(As of October 31, 2020)

Gain on negative goodwill (*)
Initial amount

1,556,827

1,556,827

Balance at beginning of period

1,454,196

1,089,341

Reserve amount during period－－

Reversal amount during period
Balance at end of period
Reason for reserve and reversal

364,855

119,972

1,089,341

969,369

Appropriated for
distributions

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

(2) Scheduled date of application
The accounting standards will be applied from the end of the fiscal period ending April 30, 2021.

51

52

6. Notes to Statement of Income and Retained Earnings*1. Breakdown of property-related operating revenue and expenses

8. Notes to Statement of Cash Distributions
Reserve for temporary difference adjustments(Thousands of yen)

(From November 1, 2019
to April 30, 2020)

A. Property-related operating revenue
Rent revenue – real estate
Rental income
Other
Other lease business revenue
Utilities revenue
Other

13,872,687
324,099
133,486
260,058

Total property-related operating revenue
B. Property-related operating expenses
Expenses related to rent businessSubcontract expenses
Property management fees
Trust fees
Utilities expenses
Property and other taxes
Insurance expenses
Repair expenses
Depreciation
Other expenses related to rent business(From May 1, 2020
to October 31, 2020)

14,196,787

14,071,985
338,215

14,410,200

393,545

186,652
229,835

416,488

14,590,332

513,204
425,146
41,484
239,615912,239
16,279292,074
2,413,359
519,294

5,372,698

11th Fiscal Period

14,826,689

561,647435,613
44,233
277,654
1,027,230
17,006
291,016
2,444,851
561,672(From May 1, 2020 to October 31, 2020)

With regard to the reserve for temporary
difference adjustments, SHR plans to drawdownat least 1% of the reserve for each fiscal period

With regard to the reserve for temporary
difference adjustments, SHR plans to drawdownat least 1% of the reserve for each fiscal period

which the reserve was made. SHR decided to
drawdown 119,972,057 yen for the 11th fiscal
period.

which the reserve was made. SHR decided to
drawdown 136,661,969 yen for the 12th fiscal
period.

(corresponding to the amount of the reserve
expensed equally over 50 years) and appropriate
the amount for cash distributions, starting fromthe fiscal period following the fiscal period in(corresponding to the amount of the reserve
expensed equally over 50 years) and appropriate
the amount for cash distributions, starting fromthe fiscal period following the fiscal period in

9. Notes to Statement of Cash Flows*1. Reconciliation of cash and cash equivalents at end of period to the corresponding balance sheet items(Thousands of yen)

11th Fiscal Period(From November 1, 2019
to April 30, 2020)

5,660,925

Total property-related operating expenses

5,372,698

5,660,925

C. Property-related operating income [A − B]

9,217,633

9,165,763

7. Notes to Statement of Changes in Net Assets*1. Total number of authorized investment units and total number of investment units issued
12th Fiscal Period
11th Fiscal Period(From November 1, 2019
to April 30, 2020)

12th Fiscal Period(From November 1, 2019 to April 30, 2020)

12th Fiscal Period

11th Fiscal Period

12th Fiscal Period(From May 1, 2020
to October 31, 2020)

Cash and deposits

8,712,829

9,424,900

Cash and deposits in trust

17,828,103

19,008,771

Cash and cash equivalents

26,540,932

28,433,672

10. Lease Transactions
Operating lease transactions as lessee
Future minimum lease payments(Thousands of yen)

(From May 1, 2020
to October 31, 2020)

11th Fiscal Period

12th Fiscal Period(As of April 30, 2020)(As of October 31, 2020)

Total number of authorized investment units

20,000,000units

20,000,000units

Due within 1 year

412,524

412,524

Total number of investment units issued

4,288,666units

4,288,666units

Due after 1 year

20,129,603

19,923,341

20,542,127

20,335,865

Total
Operating lease transactions as lessor
Future minimum lease income(Thousands of yen)

11th Fiscal Period(As of October 31, 2020)

Due within 1 year

9,772,582

11,959,455

Due after 1 year

39,503,425

38,228,936

49,276,008

50,188,391

Total

53

12th Fiscal Period(As of April 30, 2020)54

11. 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 growthof its investment assets as well as efficient management and stability of management, SHR shall procure
funds through borrowings or the issuance of investment corporation bonds for the purposes of utilizing
such funds for the acquisition of assets, payments of repair 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 the risk of fluctuations in interest rates on liabilities and foreign currency risk in thecase of overseas real estate investments, and that 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 andfor repayment of loans.

The availability and terms and conditions of borrowings and the issuance of investment corporation bonds
may be affected by SHR’s financial creditworthiness, the interest rate situation and other factors, andthere is thus no guarantee that funds can be procured at SHR’s desired timing and terms and conditions.
Furthermore, 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 withsuch 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 of fluctuations in interest rates

11th Fiscal Period (As of April 30, 2020)
Book value
recorded on thebalance sheet

addition, the contract amounts of derivative transactions in “2. Matters concerning fair value of financial
instruments” do not represent the market risk involved in the derivative transactions.
2. Matters concerning fair value of financial instruments
The following is the carrying amount and fair value of financial instruments as of April 30, 2020 and of
October 31, 2020, and the difference between them.
The following table does not include those for which fair value is recognized to be extremely difficult todetermine (please refer to (Note 2)).

Fair value

Difference(1) Cash and deposits

8,712,829

8,712,829－(2) Cash and deposits in trust

17,828,103

17,828,103－

26,540,932

26,540,932－

13,100,000

13,100,000

－

－

－

－

28,050,000

28,068,195

18,195

Total assets(3) Short-term loans payable(4) Current portion of investment corporation
bonds(5) Current portion of long-term loans payable(6) Investment corporation bonds

24,500,000

24,504,573

4,573(7) Long-term loans payable

184,292,000

186,845,449

2,553,449

249,942,000

252,518,219

2,576,219(340,937)(340,937)－(340,937)(340,937)－

Total liabilities(8) 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.

12th Fiscal Period (As of October 31, 2020)

based on rules that set forth the basic policy for handling derivative transactions and risk management.
(3) Supplementary explanation of matters concerning fair value of financial instruments
The fair value of financial instruments, aside from values based on market price, includes values based onreasonable calculations when there is no market price. As the calculations involve variable factors, there
may be cases where the corresponding values will vary when different assumptions are adopted. In(Thousands of yen)Book value
recorded on thebalance sheet(Thousands of yen)

Fair value

Difference(1) Cash and deposits

9,424,900

9,424,900－(2) Cash and deposits in trust

19,008,771

19,008,771－

28,433,672

28,433,672－(3) Short-term loans payable

－

－

－

(4) Current portion of investment corporation
bonds

－

－

－

(5) Current portion of long-term loans payable

29,710,000

29,712,514

2,514(6) Investment corporation bonds

32,500,000

32,482,848(17,151)

Total assets(7) Long-term loans payable
Total liabilities(8) Derivative transactions (*)
Total derivative transactions (*)

187,732,000

189,983,406

2,251,406

249,942,000

252,178,769

2,236,769(257,812)(257,812)－(257,812)(257,812)－(*) 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) Cash and deposits and (2) Cash and deposits in trust
As these are settled within a short period of time, the fair value is approximately the same as the book value and is thusstated at that book value.
(3) Short-term loans payable
As these are settled within a short period of time and have floating interest rates, the fair value is approximately the same as
the book value and is thus stated at that book value.

55

56

(4) Current portion of investment corporation bonds (6) 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 based on themethod of calculating by discounting the combined total of principal and interest by a reasonably estimated interest rateapplicable when conducting similar fund procurement for the remaining period of the bonds.
(5) Current portion of long-term loans payable (7) Long-term loans payable

As the long-term loans payable with floating interest rates reflect interest rate changes within a short period of time, the fairvalue is approximately the same as the book value and is thus stated at that book value (provided, however, that for long-termloans payable with floating interest rates that qualify for the special accounting treatment of interest rate swaps (please refer
to “13. Derivative Transactions”), the fair value is based on the method of calculation in which the sum total amount ofprincipal and interest accounted for with the interest rate swap is discounted by the rate assumed in the event of a similar

new drawdown). In addition, for those with fixed interest rates, the fair value is based on the method of calculation in 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.

12th Fiscal Period (As of October 31, 2020)(Thousands of yen)
Due after
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

Short-term loans payable

－

－

－

－

－

－

Investment corporation
bonds

－

3,000,000－

10,000,000

9,000,000

10,500,000

Long-term loans payable

29,710,000

39,230,000

31,310,000

25,735,000

26,833,000

64,624,000

12. Securities
11th Fiscal Period (From November 1, 2019 to April 30, 2020)
Not applicable.
12th Fiscal Period (From May 1, 2020 to October 31, 2020)(8) Derivative transactions
Please refer to “13. Derivative Transactions”.

Not applicable.

(Note 2) Financial instruments for which fair value is recognized to be extremely difficult to determine
Tenant leasehold and security deposits in trust are not subject to valuation of fair value because a reasonable estimation of

13. Derivative Transactions

1. Derivatives to which hedge accounting is not applied
11th Fiscal Period (As of April 30, 2020)

cash flows is recognized to be extremely difficult because there is no market price and the difficulty of calculating the actual
deposit period from when lessees move in to when they move out.

(Thousands of yen)

11th Fiscal Period

Item

12th Fiscal Period(As of April 30, 2020)(As of October 31, 2020)

14,074,235

14,127,690

Tenant leasehold and security deposits in trust

Not applicable.
12th Fiscal Period (From May 1, 2020 to October 31, 2020)
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 asof the closing date for each method of hedge accounting.

(Note 3) Redemption schedule of monetary claims after the closing date

11th Fiscal Period (As of April 30, 2020)(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

Cash and deposits

8,712,829

－

－

－

－

－

Cash and deposits in trust

17,828,103

－

－

－

－

－

Total

26,540,932

－

－

－

－

－

12th Fiscal Period (As of October 31, 2020)(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

Cash and deposits

9,424,900

－

－

－

－

－

Cash and deposits in trust

19,008,771

－

－

－

－

－

Total

28,433,672

－

－

－

－

－

11th Fiscal Period (As of April 30, 2020)
Method ofhedge
accounting

Type ofderivative transactions

Interest rate swap
transaction
Principal
Floating interest rate
methodreceivable and fixedinterest rate payable
Interest rate swap
Specialtransaction
accounting
treatment for Floating interest rateinterest rate receivable and fixedswapsinterest rate payable(Thousands of yen)Mainhedgeditem

Contract amount
Of which,over
1 yearFair value

Calculation
method offair value

Long-term
loans
payable48,780,000

33,380,000(340,937)*1Long-term
loans
payable100,631,000

95,281,000*2－*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 “ 11.

(Note 4) Repayment schedule of investment corporation bonds and loans after the closing date

11th Fiscal Period (As of April 30, 2020)57

Financial Instruments; 2. Matters concerning fair value of financial instruments (Note 1)”).

(Thousands of yen)
Due after
5 years

Due in1 year or less

1 to 2 years

2 to 3 years

3 to 4 years

4 to 5 years

Short-term loans payable

13,100,000

－

－

－

－

－

Investment corporation
bonds

－

－

3,000,000

3,000,000

12,000,000

6,500,000

Long-term loans payable

28,050,000

35,590,000

23,500,000

36,050,000

22,295,000

66,857,000

58

12th Fiscal Period (As of October 31, 2020)
Method ofhedge
accounting

Interest rate swap
transaction
Floating interest ratereceivable and fixedinterest rate payable
Interest rate swap
Specialtransaction
accounting
treatment for Floating interest rateinterest rate receivable and fixedswapsinterest rate payable*2

Contract amountMain
hedgeditem

Type ofderivative transactions

Principal
method*1(Thousands of yen)

Of which,over
1 yearLong-term
loans
payableLong-term
loans
payable43,280,000

110,661,000

Fair value

2. Breakdown of major items that caused significant differences between the statutory tax rate and theeffective income tax rate after application of tax-effect accounting

Calculation
method offair value(As of April 30, 2020)

Statutory tax rate

28,980,000

105,311,000(257,812)*2(%)

11th Fiscal Period

12th Fiscal Period(As of October 31, 2020)

31.46

31.46

[Adjustments]*1(32.12)(32.51)

Changes in valuation allowance

0.53

0.61

Provision of reserve for reduction entry

0.13

0.44

Other

0.01

0.01

0.01

0.01

Deductible cash distribution－

Effective income tax rate
after application of tax-effect accounting

Fair value is quoted by counterparties based on the prevailing market interest rates.

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 “ 11.

Financial Instruments; 2. Matters concerning fair value of financial instruments (Note 1)”).

16. Profit or Loss of Affiliates Ac counted for Under the Equity Method
11th Fiscal Period (From November 1, 2019 to April 30, 2020)

14. Retirement Benefits
11th Fiscal Period (From November 1, 2019 to April 30, 2020)

Not applicable.

Not applicable.
12th Fiscal Period (From May 1, 2020 to October 31, 2020)

12th Fiscal Period (From May 1, 2020 to October 31, 2020)
Not applicable.

Not applicable.

15. Income Taxes
1. Breakdown of deferred tax assets and deferred tax liabilities by major cause(Thousands of yen)

11th Fiscal Period(As of April 30, 2020)

12th Fiscal Period(As of October 31, 2020)

2,230,782

2,179,669

Amortization of leasehold rights in trust

27,22934,037

Deferred gains or losses on hedges

107,259

81,1072,365,271

2,294,814(2,365,271)(2,294,814)

－

－

－

－

Deferred tax assets (subtotal)
Valuation allowance for total deductible temporary

difference

Total deferred tax assets
Net deferred tax assets

Not applicable.

12th Fiscal Period (From May 1, 2020 to October 31, 2020)
Not applicable.

Deferred tax assets
Valuation difference on assets acquired due to merger

17. Transactions with Related Parties
1. Parent company and major corporate unitholders.
11th Fiscal Period (From November 1, 2019 to April 30, 2020)

2. Subsidiaries and affiliates.
11th Fiscal Period (From November 1, 2019 to April 30, 2020)
Not applicable.

12th Fiscal Period (From May 1, 2020 to October 31, 2020)
Not applicable.

3. Sister companies.
11th Fiscal Period (From November 1, 2019 to April 30, 2020)
Not applicable.

12th Fiscal Period (From May 1, 2020 to October 31, 2020)
Not applicable.

5960

4. Directors and major individual unitholders.
11th Fiscal Period (From November 1, 2019 to April 30, 2020)
Type

Name

Description ofbusiness or
occupation

Percentage ofvoting rights

or close
relative

Junichi
InoueTransaction
amount(Thousandsof yen)Account
item

Balancemanagement fees－

House AssetManagement, Ltd.

to Sekisui House
Asset

1,015,215

Management, Ltd.
(Note 1)

Accounts
payable– other

1,116,736

the fee amount is based on terms and conditions set forth in the Articles of Incorporation of SHR.

(Note 2) Consumption taxes are not included in the transaction amount but are included in the balance at end of period.

Directoror close
relative

JunichiInoue

Description ofbusiness or
occupation
Executive Directorof SHR and
Representative
Director of Sekisui

Percentage ofvoting rights
held by (in) SHR－House AssetManagement, Ltd.

Description oftransaction
Payment of asset
management feesto Sekisui House
Asset

Management, Ltd.
(Note 1)

Transaction
amount(Thousandsof yen)984,709

Account
item

Balanceat end of period(Thousands ofyen)

Accounts
payable– other

1,083,179(Note 1) A transaction conducted by Junichi Inoue as a representative of a third party (Sekisui House Asset Management, Ltd.) andthe fee amount is based on terms and conditions set forth in the Articles of Incorporation of SHR.
(Note 2) Consumption taxes are not included in the transaction amount but are included in the balance at end of period.

18. Asset Retirement Obligations
11th Fiscal Period (From November 1, 2019 to April 30, 2020)
Not applicable.

12th Fiscal Period (From May 1, 2020 to October 31, 2020)
Not applicable.

(From November 1, 2019
to April 30, 2020)

12th Fiscal Period(From May 1, 2020
to October 31, 2020)

Carrying amount
Balance at beginning of period

520,759,366

524,929,023

4,169,657(1,853,351)

524,929,023

523,075,672

600,583,000

600,728,000

Amount of increase (decrease) during period
Balance at end of period
Fair value at end of period

12th Fiscal Period (From May 1, 2020 to October 31, 2020)
Name

11th Fiscal Period(Thousands ofyen)(Note 1) A transaction conducted by Junichi Inoue as a representative of a third party (Sekisui House Asset Management, Ltd.) andType(Thousands of yen)at end of period

Payment of assetof SHR and

Representative
Director of Sekisuitransaction

held by (in) SHR

Executive Director
Director

Description of

19. Investment and Rental Properties
SHR owns rental office buildings, etc. in Tokyo and other areas for the purpose of earning revenue fromleasing. The following is the carrying amount, amount of increase (decrease) during the period and fair value ofthese investment and rental properties.

(Note 1) Carrying amount is the book value less accumulated depreciation.

(Note 2) Net increase during the 11th fiscal period is mainly attributable to the acquisition of 3 new properties (5,932,747 thousandyen), offset by depreciation (2,413,359 thousand yen). Net decrease during the 12th fiscal period is mainly attributable todepreciation (2,444,851 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 11th and 12th fiscal periods for investment and rental properties
is presented in “6. 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
11th Fiscal Period (From November 1, 2019 to April 30, 2020)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single
products and services category are in excess of 90% of operating revenue on the statement of income andretained earnings.
(2) Information about geographic areas
1ሻ Operating revenue

Information about net sales is omitted because net sales to external customers in Japan are in excessof 90% of operating revenue on the statement of income and retained earnings.
2ሻ Property, plant and equipment

Information about property, plant and equipment is omitted because the property, plant andequipment located in Japan is in excess of 90% of property, plant and equipment on the balance
sheet.
(3) Information about major customers(Thousands of yen)

Name of customer
Sekisui House, Ltd.

61

Operating revenue
2,143,854

Name of related segment
Real estate leasing business62

12th Fiscal Period (From May 1, 2020 to October 31, 2020)(1) Information about products and services
Information about products and services is omitted because net sales to external customers for a single
products and services category are in excess of 90% of operating revenue on the statement of income andretained earnings.
(2) Information about geographic areas
1ሻ Operating revenue

Information about net sales is omitted because net sales to external customers in Japan are in excessof 90% of operating revenue on the statement of income and retained earnings.
2ሻ Property, plant and equipment

Information about property, plant and equipment is omitted because the property, plant andequipment located in Japan is in excess of 90% of property, plant and equipment on the balance
sheet.
(3) Information about major customers(Thousands of yen)

Name of customer
Sekisui House, Ltd.

Operating revenue

Name of related segment

1,384,376

Real estate leasing business(7) S u p p l e m e n t a r y S c h e d u l e s
12th Fiscal Period (From May 1, 2020 to October 31, 2020)
1. Schedule of securities(1) Shares

Not applicable.

(2) Securities other than shares
Not applicable.
2. Contract amount and fair value of derivative transactions(Thousands of yen)

Category
Transaction other thanmarket transaction
Transaction other thanmarket transaction

TypeInterest rate swap transaction
Floating interest rate receivableand fixed interest rate payable
Interest rate swap transaction
Floating interest rate receivableand fixed interest rate payable
Total

21. Per Unit Information

Contract amount (Note 1)
Of which,over 1 year

Fair value(Note 2)43,280,000

28,980,000(257,812)

110,661,000

105,311,000(Note 3)

153,941,000

134,291,000(257,812)(Note 1) The contract amount of interest rate swap transactions is based on the notional principal amount.

11th Fiscal Period(From November 1, 2019
to April 30, 2020)

12th Fiscal Period(From May 1, 2020
to October 31, 2020)

Net assets per unit

66,762yen

66,747yen

Net income per unit

1,630yen

1,630yen(Note 2) Fair value is quoted by counterparties based on the prevailing market interest rates.

(Note 3) The fair value is omitted because the transaction meets the criteria for the special accounting treatment under the
Accounting Standards for Financial Instruments.

(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.

11th Fiscal Period(From November 1, 2019
to April 30, 2020)
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)

12th Fiscal Period(From May 1, 2020
to October 31, 2020)

6,991,331

6,992,995－－

6,991,331

6,992,995

4,288,666

4,288,666

22. Significant Subsequent Events
Not applicable.

63

64

3. Schedule of property, plant and equipment and intangible assets
Type of assets

Buildings
in trust
Structuresin trust

Balanceat beginningof period

Amount ofincreaseduringperiodAmount ofdecreaseduringperiodBalanceat end ofperiod174,333,341

443,027－

1,571,922－

2,217,849(Thousands of yen)
Accumulated depreciation

Net balanceat end ofperiodoraccumulated
amortization

For theperiod174,776,368

15,046,546

2,306,445

159,729,822－

1,571,922

215,642

31,555

1,356,279

18,422－

2,236,271

233,151

50,1482,003,120

153

－

－

153

96

38

57

309,530

129,821－439,351

77,651

31,218361,700

357,199,586－－

357,199,586－－

357,199,586

Name

equipment intrust
Property,plant andequipment

Vehicles intrust
Tools,
furniture andfixtures intrust
Land in trust
Constructionin progress in－

61,142－

61,142－－

61,142535,632,382

652,413－536,284,796

15,573,087

2,419,406

520,711,708

2,552,025－－

2,552,025

127,128

25,4252,424,896

Other

14,500228－

14,72910,719736

4,010

Subtotal

2,566,526

228－

2,566,754

137,848

26,162

2,428,906

538,198,909

652,641－

538,851,551

15,710,935

2,445,568

523,140,615

trust
Subtotal
Intangible Leasehold
assetsrights in
trust

Total

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”.

Issue date

Notes

Machineryand

5. Schedule of investment corporation bonds

SHI
Fourth Series
February 28,
Unsecured Investment
2014
Corporation Bond
SHI
Fifth Series
August 29,
Unsecured Investment
2014
Corporation Bond
SHRFirst Series
September 8,
Unsecured Investment
2016
Corporation Bond
SHR
Second Series
July 13,
Unsecured Investment
2017
Corporation Bond
SHR
Third Series
July 11,
Unsecured Investment
2019
Corporation Bond
(Green Bonds)
SHR
Fourth Series
July 11,
Unsecured Investment
2019
Corporation Bond
(Green Bonds)
SHR
Fifth Series
November 1,
Unsecured Investment
2019
Corporation Bond
(Green Bonds)
SHR
Sixth Series
February 28,
Unsecured Investment
2020
Corporation Bond
(Green Bonds)
SHR
Seventh Series
September 9,
Unsecured Investment
2020
Corporation Bond
(Green Bonds)
SHR
Eighth Series
September 9,
Unsecured Investment
2020
Corporation Bond
(Green Bonds)
Total

－

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

Redemption Use of
dateproceeds

3,000,000－

3,000,000

1.069

February 28,(Note 2) Unsecured2024

3,000,000－

3,000,000

0.871

2,000,000－

2,000,000

0.340

3,000,000－

3,000,000

0.240

July 13,2022(Note 2) Unsecured

4,000,000－

4,000,000

0.220

July 11,2024(Note 2) Unsecured

2,500,000－

2,500,000

0.570

July 11,2029(Note 2) Unsecured

5,000,000－

5,000,000

0.220

November 1,(Note 2) Unsecured2024

2,000,000－

2,000,000

0.500

February 28,(Note 3) Unsecured
2030

－

－

4,000,000

0.250

September 9,(Note 2) Unsecured
2025

－

－

4,000,000

0.510

September 9,(Note 2) Unsecured
2030

24,500,000－

32,500,000－

August30,2024

Security(Note 2) Unsecured

September 8,(Note 2) Unsecured
2026

－

－

－

(Note 1) The funds are used to repay borrowings and acquire trust beneficiary interests in real estate, etc.
(Note 2) The proceeds are used as funds for repayment of loans payable.
(Note 3) The proceeds are used as funds for redemption of existing investment corporation bonds.
(Note 4) These investment corporation bonds are equipped with pari passu clause among specified investment corporation bonds.
(Note 5) 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

65

1 to 2 years－

3,000,000

2 to 3 years

3 to 4 years－

10,000,000

4 to 5 years
9,000,000

66

6. Schedule of loans payable
category

LenderAmount ofincreaseduringperiodAmount ofdecreaseduringperiodBalanceat end ofperiodMUFG Bank, Ltd.

3,109,000－

3,109,000

Mizuho Bank, Ltd.

2,534,000－

2,534,000－－

2,357,000－

2,357,000－

Shortterm Mizuho Bank, Ltd.
loans Sumitomo Mitsui Banking
payable Corporation
MUFG Bank, Ltd.

1,670,000－－

1,670,000－－

Mizuho Bank, Ltd.

Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.

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

1,260,000－

300,000

300,000

260,000－－

260,000－－

240,000－

240,000－

800,000－－

800,000

500,000

500,000－－

2,500,000－

2,500,000－

200,000－

200,000－

500,000－－－－

500,000－－

MUFG Bank, Ltd.

800,000

Mizuho Bank, Ltd.

300,000

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited
The Senshu Ikeda Bank,Ltd.
The Yamaguchi Bank, Ltd.

1,370,000

1,260,000

1,000,000

Mizuho Bank, Ltd.

Longtermloanspayable1,370,000

Aozora Bank, Ltd.

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

1,000,000－－

Aug. 31, 2020－－

400,000－－

400,000

500,000－－

500,000

400,000－－

500,000－－

500,000

500,000－－

500,000－－

500,000－－

Lumpsum
500,000
Feb. 26, 2021 payment
0.95225(Note4)at
500,000
maturit
500,000y500,000－－

500,000

500,000－－

500,000

Mizuho Bank, Ltd.

400,000－－

400,000

500,000－－

500,000

1,500,000－－

1,500,000

980,000－－

980,000

800,000－－

800,000

300,000－－

300,000－－

300,000

500,000

2,450,000

－
－
－
－

－
－
－
－

2,450,000

1,950,000－－

1,950,000

900,000－－

900,000－

Shinkin Central Bank

500,000

The Shizuoka Bank, Ltd.

500,000

Mizuho Bank, Ltd.

2,500,000－－

Sumitomo Mitsui Banking
Corporation

2,000,000－

Use ofSecurity
proceeds

Purchaseof assets
andrelatedexpenses

300,000
500,000 0.97300

Feb. 26, 2021
(Note4)500,000
500,000
0.83600

Aug. 31, 2021
(Note4)2,500,000 0.96475 Aug. 31, 2022

Purchaseof assets
andrelatedexpenses

Amount ofdecreaseduringperiodBalanceat end ofperiodMUFG Bank, Ltd.

5,100,000

－
－

－
－

5,100,000

2,400,000
3,700,000－－

3,700,000

2,000,000－－

2,000,000

900,000－－

900,000

1,400,000－－

1,400,000

800,000－－

800,000

700,000－－－

4,600,000

Mizuho Bank, Ltd.

700,000－－－

3,700,000－－

3,700,000

700,000－－

700,000

300,000－－

300,000

600,000－－

600,000

300,000－－

300,000

500,000－－

500,000

500,000－－

500,000－－

500,000

500,000－－－－－

500,000

500,000－－－－－

500,000－－

500,000

750,000－－－

750,000

Long- The 77 Bank, Ltd.
term The Hiroshima Bank, Ltd.
loans
MUFG Bank, Ltd.
payableMizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Resona Bank, Limited

500,000
500,000
300,000

700,000

500,000

1.47450 Nov. 30, 2024

0.62800

Lumpsum
payment
atmaturity500,000
300,000
500,000

500,000

Development Bank of JapanInc.

1,000,000－－

1,000,000 0.85250

MUFG Bank, Ltd.

1,300,000
1,000,000

－
－

－
－

1,300,000

Mizuho Bank, Ltd.

600,000－－

600,000

300,000－－

300,000

800,000－－

800,000

500,000

－
－
－
－
－
－
－
－
－
－

－
－
－
－
－
－
－
－
－
－

500,000

700,000

Aozora Bank, Ltd.

200,000

Shinkin Central BankThe Senshu Ikeda Bank,Ltd
The Shizuoka Bank, Ltd.

200,000
200,000

The 77 Bank, Ltd.

200,000

The Hiroshima Bank, Ltd.

200,000

The Yamaguchi Bank, Ltd.

200,000

200,000

Unsecured
Unguaranteed

0.73975 Feb. 28, 2022

800,000

The Bank of Fukuoka, Ltd.

Feb. 26, 2021
(Note4)500,000

The Bank of Fukuoka, Ltd.

500,000

Use ofSecurity
proceeds

Purchaseof assets
andrelatedexpenses

The Norinchukin Bank

The Norinchukin Bank

Repayment
method

0.94060 Nov. 30, 2021－－－

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

Repayment
due date

700,000

4,600,000

The Senshu Ikeda Bank,Ltd.
The Shizuoka Bank, Ltd.

Averageinterest
rate(%)(Note 1)2,400,000

MUFG Bank, Ltd.

Shinkin Central Bank

Unsecured
Unguaranteed

Amount ofincreaseduringperiodMizuho Bank, Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Development Bank of JapanInc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
The Norinchukin Bank

Purchaseof assets
andrelatedexpenses

1.11000 Feb. 28, 2022

LenderDevelopment Bank of JapanInc.
The Norinchukin Bank

Repayment ofloans
payableRepayment ofloans
payablecategory

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

400,000

500,000

Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.

Mar. 31,2021(Note2)300,000－

Mizuho Bank, Ltd.

1.17200

Repayment
methodMay. 29,2020

300,000 1.17350 Feb. 28, 2022－

Sumitomo Mitsui Banking
Corporation
The Bank of Fukuoka, Ltd.

0.22677

Repayment
due date

300,000

500,000

Mizuho Bank, Ltd.

0.25000(Thousands of yen)

800,000

MUFG Bank, Ltd.

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

67

Balanceat beginning of
periodAverageinterest
rate(%)(Note 1)

Balanceat beginning of
period800,000
500,000

Repayment ofloans
payable1,000,000

500,000 0.86650
700,000

Feb. 28, 2023

200,000
200,000
200,000
200,000
200,000
200,000
200,000

Repayment ofloans
payable2,000,000

68

category

Lender

MUFG Bank, Ltd.

1,650,000

MUFG Bank, Ltd.

200,000

Mizuho Bank, Ltd.

950,000

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

Amount ofincreaseduringperiodAmount ofdecreaseduringperiod

－
－
－

－
－
－

Balanceat end ofperiodAverageinterest
rate(%)(Note 1)

Repayment
due date

Repayment
methodUse ofSecurity
proceeds

1,650,000 0.61760
200,000－－

850,000－－

Nov. 30, 2020
(Note4)850,000 0.62760

500,000－－

500,000

550,000－－－

550,000

The Norinchukin Bank

650,000

MUFG Bank, Ltd.

700,000

Development Bank of JapanInc.
Mizuho Bank, Ltd.

650,000－－

650,000 0.88500

350,000－－

350,000－

650,000

650,000
700,000 0.88470－

350,000－－

350,000

300,000－－－－

300,000

Lender

Nov. 30, 2022
0.89470

Repayment ofloans
payableAmount ofdecreaseduringperiod800,000

－
－
－

－
－
－

800,000－－

800,000 0.59750

400,000－－

400,000

1,560,000－－

1,560,000

830,000－－

830,000

370,000－－

MUFG Bank, Ltd.

600,000
1,000,000

Development Bank of JapanInc.
The Norinchukin Bank－－

370,000

370,000－－－－

1,810,000

MUFG Bank, Ltd.

440,000

Mizuho Bank, Ltd.

900,000
1,600,000－

1,600,000

600,000－－－－

600,000 0.61000

200,000
300,000－－

300,000

600,000－－

600,000 0.67000

400,000

700,000

－
－
－
－
－

－
－
－
－
－

1,200,000－－

500,000－－－

400,000
700,000－－

700,000

350,000－－

350,000

300,000－－

300,000

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

100,000－－

100,000

Shinkin Central Bank

100,000－－

100,000

MUFG Bank, Ltd.

1,500,000

2,100,000－－

2,100,000

800,000

450,000－－

450,000－－

1,000,000

MUFG Bank, Ltd.
Longterm Mizuho Bank, Ltd.
loans Development Bank of Japanpayable Inc.
The Bank of Fukuoka, Ltd.

－－

700,000
1,100,000

－
－

－
－

1,100,000

1,100,000－－

1,100,000

450,000－－

450,000

500,000－－

500,000

300,000－－－－－

300,000

Mizuho Bank, Ltd.
Development Bank of JapanInc.
Mizuho Bank, Ltd.

Longtermloans Sumitomo Mitsui Banking
payable Corporation
Mizuho Trust & Banking
Co., Ltd.
MUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

Mizuho Bank, Ltd.

1.01850

Nov. 30, 2023

0.67400

Lumpsum
450,000
Aug. 31, 2023 paymentat450,000 0.68030
maturity1,000,000

Unsecured
Unguaranteed

700,000

Purchaseof assets
andrelatedexpenses

0.63800

370,000

MUFG Bank, Ltd.

Mizuho Bank, Ltd.

400,000

300,000

Aozora Bank, Ltd.

300,000

The Yamaguchi Bank, Ltd.

500,000－－－

870,000－－

480,000－－

300,000－－－－－

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

1,810,000 0.60500
440,000
900,000

300,000
1,500,000 0.72500

LumpUnsum
Repaymesecured
700,000
payment
nt of
Unat
loans
1,200,000
guaranFeb. 27, 2026
maturit payable
0.77880teed
y500,000
800,000

300,000
500,000
870,000
480,000 0.25946 Aug. 31, 2021
(Note4)300,000

The Norinchukin Bank

210,000

MUFG Bank, Ltd.

990,000

MUFG Bank, Ltd.

260,000

Mizuho Bank, Ltd.

550,000－－－－－

220,000－－

220,000 0.45254

220,000－－

220,000

176,000－－－－

210,000
990,000 0.37000

Aozora Bank, Ltd.

200,000

The Yamaguchi Bank, Ltd.

100,000

MUFG Bank, Ltd.

450,000
600,000－－

600,000

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

200,000

－
－
－
－
－
－
－

200,000

The Norinchukin Bank

100,000 0.50500
100,000

MUFG Bank, Ltd.

750,000

Mizuho Bank, Ltd.

1,050,000－－－－

600,000－－

600,000

1,050,000－－

1,050,000

650,000－－

650,000

950,000－－－

950,000－

550,000

Development Bank of JapanInc.
The Bank of Fukuoka, Ltd.

100,000
450,000

The Hiroshima Bank, Ltd.

100,000

Mizuho Bank, Ltd.

200,000

－
－
－
－
－
－
－

200,000－－

200,000

400,000－－

400,000

500,000－－

500,000

300,000－－－－

300,000

Shinkin Central BankThe Senshu Ikeda Bank,Ltd
The Shizuoka Bank, Ltd.

100,000

The 77 Bank, Ltd.

100,000

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

100,000
100,000

300,000

100,000
100,000
100,000
200,000

0.49500 Aug. 30, 2024

Repayment ofloans
payableSumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

2,352,000

The Norinchukin Bank

750,000

MUFG Bank, Ltd.

650,000－－－

Development Bank of Japan
Inc.

550,000－

Feb. 28, 2025

400,000

300,000

Feb. 29, 2024

Sep. 8, 2026

200,000

The Norinchukin Bank

200,000

0.67000－ 0.31000 Aug. 31, 2020

－
－
－
－
－

300,000

Aug. 29, 2025－

500,000

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

800,000－

750,000

Use ofSecurity
proceeds

600,000 0.57000

550,000

MUFG Bank, Ltd.

Repayment
method1,000,000－－－－

Sumitomo Mitsui Banking
Corporation
MUFG Bank, Ltd.

Repayment
due date

370,000

MUFG Bank, Ltd.

500,000

Balanceat end ofperiod370,000 0.28446 Nov. 30, 2020
(Note4)550,000－－－－

750,000 1.00850

Averageinterest
rate(%)(Note 1)

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

1,650,000

1,650,000

650,000

category

Mizuho Bank, Ltd.

950,000－－－

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

69

Balanceat beginning of
period260,000
550,000

176,000
2,352,000

Nov. 30, 2023

0.61380 Aug. 29, 2025

750,000 0.32000
1,050,000

0.34800

Jul. 13, 2022

750,000
650,000

0.35341

300,00070

category

LenderAmount ofincreaseduringperiodAmount ofdecreaseduringperiodBalanceat end ofperiodAverageinterest
rate(%)(Note 1)

Repayment
due date

750,000
1,050,000

－
－

－
－

1,050,000

600,000－－

600,000

1,050,000－－

1,050,000

650,000－－

650,000

950,000－－－

950,000

0.41800

MUFG Bank, Ltd.

650,000－－－

550,000－－

550,000

500,000

－
－
－
－
－
－
－

500,000 0.56500

4,200,000

－
－
－
－
－
－
－

1,900,000－－

1,900,000

1,480,000－－

1,480,000

320,000－－

320,000

500,000－－

Aug. 31, 2021
0.22946(Note4)500,000

200,000－－

200,000

500,000

Mizuho Bank, Ltd.

100,000

The 77 Bank, Ltd.

500,000

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

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

500,000
1,900,000

376,000－－

300,000
2,459,000

－
－

－
－

260,000－－

900,000－－

565,000－－

450,000
1,332,000

－
－

－
－

390,000－－

1,350,000－－

500,000－－－－

500,000

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

200,000

The Norinchukin Bank

100,000

MUFG Bank, Ltd.
Mizuho Bank, Ltd.

650,000

0.42622500,000

0.63500

500,000
1,900,000 0.70000
4,200,000

0.78300

Aug. 31, 2027

LumpUnsum
Repaymesecured
300,000 0.34900
payment
nt of
Unat
loans
2,459,000
Aug. 30, 2024
guaranmaturit payable
teed
260,000 0.35900
y376,000 0.28568

565,000 0.48000
450,000 0.56500
1,332,000

Feb. 26, 2027

390,000 0.57500
1,350,000
500,000 0.29900
500,000－－

500,000

700,000－－

700,000

200,000－－

200,000

0.30900

May. 31,2023

800,000－－－－

700,000－－

700,000

400,000－－

400,000

100,000
1,000,000 0.39580
800,000

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

400,000－－

400,000

200,000
200,000－－－－

200,000

The Norinchukin Bank

800,000
700,000－－

700,000

200,000－－

200,000

400,000－－

400,000

200,000－－－－

200,000

1,400,000

Mizuho Bank, Ltd.

2,400,000
1,000,000－－

1,000,000

200,000－－

200,000

400,000－－

400,000

300,000－－－－

300,000

0.40580

2,400,000

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

0.69500

200,000
200,000

0.28100

600,000－－

600,000

700,000－－

700,000

Shinkin Central Bank

200,000－－

1,000,000－－

1,000,000 0.27100

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

Feb. 29, 2028

300,000

Resona Bank, Limited

200,000

1,500,000－－

1,500,000

1,230,000－－

1,230,000

LumpUnsum
Repaymesecured
nt ofAug. 31, 2023 payment
Unat
loans
guaranmaturit payable
teedy200,000－－

200,000

600,000－－

600,000

Resona Bank, Limited

800,000－－

The Norinchukin Bank

900,000－－

800,000 0.42000 Feb. 27, 2026
900,000

The Bank of Fukuoka, Ltd.

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－－

MUFG Bank, Ltd.

1,000,000－－

1,000,000 0.41000

MUFG Bank, Ltd.

1,170,000－－

1,170,000 0.46000

900,000－－

300,000－－

300,000

1,200,000－－

1,200,000

200,000－－

800,000－－

1,800,000－－

Mizuho Bank, Ltd.

Aug. 30, 2024

Aug. 31, 2026
0.56600

500,000

The Bank of Fukuoka, Ltd.
The Senshu Ikeda Bank,Ltd
The 77 Bank, Ltd.

MUFG Bank, Ltd.

Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited

Use ofSecurity
proceeds

1,400,000 0.68500

－
－
－
－

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

Repayment
method800,000

MUFG Bank, Ltd.

300,000

Repayment
due date

1,000,000 0.55600

－
－
－
－

500,000

Averageinterest
rate(%)(Note 1)200,000 0.41388

Mizuho Bank, Ltd.

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

200,000

－
－
－
－

－
－
－

Balanceat end ofperiodSumitomo Mitsui Banking
Corporation

Mizuho Bank, Ltd.

900,000

Amount ofdecreaseduringperiod－－－Mizuho Bank, Ltd.

Longtermloanspayable200,000

Amount ofincreaseduringperiod1,000,000

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

Feb. 27, 2026

Balanceat beginning of
periodMUFG Bank, Ltd.

The Norinchukin Bank

500,000
100,000

LenderSumitomo Mitsui Trust
Bank, Limited
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited

750,000

500,000

1,000,000

category

May. 31,2023

750,000

MUFG Bank, Ltd.

Use ofSecurity
proceeds

Shinkin Central Bank

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

Repayment
method750,000 0.34000

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

71

Balanceat beginning of
period300,000

900,000

0.44000

Feb. 28, 2029

200,000
800,000 0.27300 Nov. 30, 2023
1,800,000

200,00072

category

LenderBalanceat beginning of
periodAmount ofincreaseduringperiodAmount ofdecreaseduringperiodBalanceat end ofperiodAverageinterest
rate(%)(Note 1)

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

1,700,000－－

1,700,000

1,300,000－－

1,200,000－－

1,200,000 0.59900

600,000－－

600,000

Resona Bank, Limited

900,000－－

900,000

Development Bank of Japan
Inc.

800,000－－

800,000 0.50000

Mizuho Bank, Ltd.

605,000－－

605,000

Sumitomo Mitsui Banking
Corporation

800,000－－

800,000

MUFG Bank, Ltd.

2,500,000－－

Mizuho Bank, Ltd.

400,000－－

400,000

545,000－－

545,000

500,000－－

500,000

Sumitomo Mitsui Banking
Corporation
The Norinchukin BankMUFG Bank, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.

Sumitomo Mitsui Banking
Corporation
Mizuho Trust & Banking
Co., Ltd.
Resona Bank, Limited
MUFG Bank, Ltd.
Long- MUFG Bank, Ltd.
term Mizuho Bank, Ltd.
loans
Sumitomo Mitsui Banking
payableCorporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Resona Bank, Limited

0.44100

0.29150

0.49500

500,000－－

1,542,000－－

1,542,000 0.47500－－

3,109,000

3,109,000

2,534,000

2,534,000－

2,357,000

2,357,000－－ 0.21964－－

300,000－

300,000－

500,000－

500,000－

2,500,000－－

500,000－

200,000

MUFG Bank, Ltd.

－－

400,000

400,000 0.28700

990,000－－－

1,840,000－

1,840,000－

600,000－

600,000－

700,000－

700,000－

500,000－

500,000 0.46600－－

400,000

400,000

200,000－－－

200,000－

200,000－－－

400,000

400,000

1,370,000－－－

1,370,000 0.45000－

400,000－

400,000 0.36000

The 77 Bank, Ltd.
The Yamaguchi Bank, Ltd.
MUFG Bank, Ltd.
Development Bank of Japan
Inc.
Total

200,000

1 to 2 years
39,230,000

2 to 3 years
31,310,000

3 to 4 years
25,735,000

4 to 5 years
26,833,000

May. 29,2026

May. 31,2028

Aug. 29, 2025

Aug. 31, 2028

May. 31,2021(Note3)

LumpUnsum
Repaymesecuredpayment
nt of
Unat
loans
guaranmaturit payableteed
y2,500,000 0.29700 Feb. 28, 2025

200,000

The Senshu Ikeda Bank,
Ltd.

29,710,000(Thousands of yen)

500,000

500,000

Shinkin Central BankDue in1 year or less

2,500,000 0.28000－

The Norinchukin Bank

Use ofSecurity
proceeds

1,300,000－

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

Repayment
due date

Long-term loans payable

The Bank of Fukuoka, Ltd.
Mizuho Bank, Ltd.

(Note 5) The following is the maturity schedule of long-term loans within five years of the balance sheet date.
Repayment
method990,000

200,000

Aug. 31, 2027

200,000

225,442,000 20,200,000 28,200,000 217,442,000(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 rates reflecting the effect of the interest rate swaps.
(Note 2) Early repayment was made on August 31, 2020.
(Note 3) Early repayment was made on September 10, 2020.
(Note 4) 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.

73

74

75

76

Unitholder Information

Unitholder Information

Unitholder Memo

Change in Investment Unit Price and Trading Volume (From December 3, 2014 to November 30, 2020)
SHR´s investment unit price (left axis)

TSE REIT Index

Trading volume (right axis)(JPY)
110,000(Unit)
400,000

90,000Unitholder Memo
Account Closing Date

End of April and October of each year

Record Date for Determining
Distribution Payment

End of April and October of each year
(Cash distribution will be paid out within 3 months from the record date.)

General Meeting of Unitholders

General meeting of unitholders shall be convened on January 1, 2022 and onwards without delay,and subsequently be convened on January 1 every 2 years and onwards without delay. In addition,
the general meetings of unitholders may be held from time to time when it is necessary.

Date to Determine Exercising of
Voting Rights by Unitholders

Date stipulated in Article 12 of the Articles of Incorporation

Listed Stock ExchangeTokyo Stock Exchange, Inc. (Securities Code: 3309)

Newspaper Posting Public Notice

Nikkei Inc.

Transfer Agent

Mizuho Trust & Banking Co., Ltd.

Contact

Stock Transfer Agency Department,
Mizuho Trust & Banking Co., Ltd.
1-2-1 Yaesu, Chuo-ku, Tokyo, 103-0028
Phone: 0120-288-324 (Toll Free only in Japan)

300,000

70,000200,000

50,000100,000

30,0000Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep. Dec. Mar. Jun. Sep.
2014 2015
2016
2017
2018
2019
2020
(Note 1) Closing price and trading volume of the investment unit of SHR in a regular trading session at Tokyo Stock Exchange, Inc. are indicated.
(Note 2) As a two-for-one split of investment units was implemented on May 1, 2018, investment units have been traded at halved (the ex-rights) unit price on and after April 25, 2018. In consideration of the impact of the split, the above graph is based on actual figures of “Investment Unit Price” for April 24, 2018 and earlier being divided by two and actual figures of “Trading
Volume” being multiplied by two.
(Note 3) Change in TSE REIT Index is indicated after converting the closing price of TSE REIT Index on the listing date of SHR (December 3, 2014) to JPY 66,000, the amount gained after adjusting
the two-for-one split to the closing price of the investment unit of SHR in a regular trading session. Furthermore, TSE REIT Index refers to the weighted average-type index of market
capitalization of all REIT counters listed on the Tokyo Stock Exchange.

Concerning Procedures to Change Registered Address, etc.

Unitholder Composition（As of the end of 12th FP ended Oct. 2020)

Financial institutions (including securities companies)
Individuals and others
Foreign firms, etc.

Other domestic firms

3,031,861 units (70.7%)

Number ofinvestment units
owned by owner type286,423 units (6.7%)
699,675 units (16.3%)
270,707 units (6.3%)

Number ofunitholders
by owner type
248 persons (1.3%)
341 persons (1.8%)

Concerning Receiving Cash Distribution
You can receive your “cash distribution” by bringing your “distributions receipt” to a nearby Japan Post Bank or post office.
In cases where the reception period has elapsed, please specify how you wish to receive dividends on the back of the “distributions receipt” and then mail it to the place of contact mentioned above, or receive cash distribution directly at the service
counter of the head office/branch of Mizuho Trust & Banking Co., Ltd. In addition, with respect to future cash distribution, if
you wish to receive them through transfer to a bank account you specify or other measures, please contact your securities
company, etc.
Please receive your “cash distribution” on an early date as we will be unable to pay them if they are not received within 3
years from the commencement date of payments of cash distribution.

Total: 4,288,666 units

Total: 19,279 persons

Please contact your securities company to change registered address, name, etc.

18,471 persons (95.8%)

219 persons (1.1%)(Note) Total of ratios may not add up to 100.0% as ratios are indicated as rounded to the first decimal place.

Website of Sekisui House Reit, Inc.

IR Calendar
Closing month of
FP ending April

Announcement offinancial results for FP
ending April

Apr.

Jun.
May

Closing month of
FP ending October

Oct.

Aug.
Jul.

Sep.

Commencement of the payment of cash distributions for FP ending April
Dispatch of Semi-Annual Report for FP ending April (Japanese version)

77

Announcement offinancial results for FP
ending October

Dec.
Nov.

Guide to website

https://sekisuihouse-reit.co.jp/en/

Feb.
Jan.

Mar.

Commencement of the payment of cash distributions for FP ending October
Dispatch of Semi-Annual Report for FP ending October (Japanese version)

SHR strives for timely and accurate information disclosure via
the website.
The latest cash distribution, finance, investment property andother information useful to investors are made available forviewing on the website.

78