Business Results
for the 23rd Fiscal Period
May 15, 2017

Business Results
for the 23rd Fiscal Period
from Oct.1, 2016
to Mar. 31, 2017

Sekisui House Asset Management , Ltd .

Contents
Ⅰ. Introduction ～Change in Major Shareholder of

Ⅵ. CSR and Environmental Activities

the Asset Management Company～
Transition to Structure with Sekisui House as Sole Sponsor・・・・・

4

Ⅱ. Overview of the 23rd FP
Highlights・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

7
Summary of Business Results for the 23rd FP・・・・・・・・・・・・・・・・ 8
Analysis of Change from Forecast Cash Distribution for the 23rd
F P ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 9
Status of the 23rd FP-End Appraisal Value, etc.・・・・・・・・・・・ 10

Ⅲ. External Growth Results for the 23rd FP
Summary of External Growth Results for the 23rd FP・・・・・・・・・・・・ 13
Overview of Assets Acquired for the 23rd FP・・・・・・・・・・・・・・・・・・ 14
Replacement of Assets Under Management to Strengthen
Portfolio・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 15
Status of Residential Portfolio・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 16

Ⅳ. Internal Growth Results for the 23rd FP

Examples of Past Initiatives in CSR and Environmental Activities・・ 31
Examples of Acquisition of Environmental Certification from External
Agencies・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 32

Ⅶ. Forecasts for the 24th FP and the 25th FP
Forecast for the 24th FP ・・・・・・・・・・・・・・・・・・・・・・・・・・・ 34
Analysis of Change in Forecast Cash Distribution for the 24th FP・ 35

Forecast for the 25th FP ・・・・・・・・・・・・・・・・・・・・・・・・・・・ 36
Analysis of Change in Forecast Cash Distribution for the 25th FP・ 37
Future Distribution Policy・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 38
Residential Properties Planned, Developed or Owned by Sekisui
House Group・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 39(Reference) Growth Strategy in Phase III announced in May 2016・・ 40

Ⅷ. Appendix
Balance Sheet・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 42
Statement of Income and Retained Earnings・・・・・・・・・・・・・・・・・・・・ 44

Occupancy Ratio and NOI Yield・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 18

Statements of Cash Flows / Cash Distribution ・・・・・・・・・・・・ 45

Residential Properties Occupancy Status by Investment Area・・・・ 19

Summary of Selected Financial Data・・・・・・・・・・・・・・・・・・・・・・・・・・ 46
History Since Establishment of Collaborative System with Sekisui HouseGroup・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 47
Portfolio Map ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 48

Residential Properties New / Renewed Contract Rent Trends・・・・ 20
Status of Selected Management Data on Residential Properties・ 21
Measures to Improve Profitability of Residential Properties・・・・・・ 22
Measures to Maintain / Improve Asset Value of Residential
Properties ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 23
Present Status of Hamamatsu Plaza・・・・・・・・・・・・・・・・・・・・・・・・・・ 24

Ⅴ. Financial Activities for the 23rd FP
Equity Financing ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 26
Debt Financing ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 27

Portfolio Development Policy・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 50
List of Properties Owned at End of Fiscal period・・・・・・・・・・・・・・

51

List of Fiscal Period-End Estimated Values・・・・・・・・・・・・・・・・・・・・ 56
Overview of Interest-Bearing Debt・・・・・・・・・・・・・・・・・・・・・・・・・・・ 61
Overview of Unitholders as of March 31, 2017・・・・・・・・・・・・・・・・・・ 63
Change in Investment Unit Price and Trading Volume・・・・・・・・・・・・ 64

Ⅰ. Introduction～Change in Major Shareholder of the Asset Management Company～

Prime Maison SHIROKANE-TAKANAWA

Prime Maison ICHIGAYAYAMABUSHICHO

Esty Maison MORISHITA

Transition to Structure with Sekisui House as Sole Sponsor（1）Transition to sole sponsor structure through the transfer of shares of the Asset Management Company (25%) owned
by Spring Investment to Sekisui House on March 29, 2017
＜Status of officers after transition to new structure＞

Former structure

New structure

Investment Corporation

Investment Corporation

Title

75％

－

Executive Vice
President

Nobuyoshi
Sato－

Senior Managing
Director

Koji
Sakamoto－

Director

MasamiMatsumotoPart-time

Auditor

Naoki
Kawamura

Part-time

Asset Management Company

25％

investment

100％

investment

investment

disposition
Sekisui House

SpringInvestment

Sekisui House

Remarks

Osamu
MinamiPresident

Asset Management Company

Name（Senior Manager, Accounting & Finance
Department, Sekisui House）（Senior Manager, Legal Department,
Sekisui House）

In conjunction with the transition to the sole sponsor structure, the trade name of the Asset Management
Company was changed on March 29, 2017, and a petition regarding partial amendment of the Articles ofincorporation to change the trade name of the Investment Corporation will be submitted to the General Meetingof Unitholders to be held on June 7, 2017 for approval
Asset Management Company

Investment Corporation（Changed trade name on March 29, 2017）（Plans to discuss petition to change trade name on June 7, 2017）（Former trade name : Sekisui House SI Asset Management, Ltd.）（Current trade name : Sekisui House SI Residential Investment Corporation）

Abbreviation ： SHAM

Abbreviation ： SHI
4

Transition to Structure with Sekisui House as Sole Sponsor（2）The “Agreement concerning preferential Provision of Property Information” concluded with Spring Investment
expired in conjunction with the change of shareholder
Property information acquisition structure after the change

Investment Corporation

Sekisui House

Pipeline
SupportAgreement

Sekiwa Real
Estate companies（seven companies）

Asset Management Company

Counterparties

Name of pipeline support agreement

Sekisui House
Sekiwa Real Estate
Sekiwa Real Estate Kanto

Agreement Concerning
preferential negotiation rights, etc.

Sekiwa Real Estate Tohoku
Sekiwa Real Estate Chubu
Sekiwa Real Estate Kansai
Sekiwa Real Estate Chugoku
Sekiwa Real Estate Kyushu

Agreement Concerning
preferential negotiation rights

Reference : Status of property acquisitions with Sekisui House as sponsor since March 2010

Acquired fromthird parties

Sekisui House
Total acquisition
price¥135.2 billion

71 properties¥ 56.0billion28

properties

Sekiwa Real
Estate companies¥ 14.1billionSekisui House Group10¥ 70.1 billion（51.9%）

38 properties

properties

Note: The totals above represent the number of properties acquired by the Investment Corporation since March 2010 and the total acquisition price of those properties, each categorized by the sellerof those properties (Sekisui House, Sekiwa Real Estate companies and third parties). The percentages above are calculated based on the total acquisition price of the aforementioned properties,
and are rounded to the first decimal place and categorized in the same way as the totals.

5

Ⅱ. Overview of the 23rd FP

Prime Maison SHIROKANE-TAKANAWA

Prime Maison ICHIGAYAYAMABUSHICHO

Esty Maison MORISHITAHighlights
23rd FP（Ended Mar. 2017）
Achieved cash distribution per unit target of ¥2,200 through steady expansion of asset size, consistently
high occupancy ratio of assets under management, and conservative financial management
External growth results

Internal growth results

Acquired 3 residential properties
for a total of ¥9.1 billion
Disposed 1 residential property
for ¥1.2 billion

Average occupancy ratio％
for the fiscal period(residences only)

Financial results

97.0

Average NOI yield

Forecast cash distribution

Actual cash distribution¥ 2,180 per unit

¥ 2,234 per unit

（announced on Nov. 15, 2016）（up ¥ 54 from forecast）

5.1％(residences only)

Period-end total
assets LTV
Average borrowing
cost rate

50.3％
0.97％

Implementation of internal reserves¥ 31 million

Part of gain on sale of Esty Maison
YACHIYOMIDORIGAOKA

Cumulative internal reserves ¥ 214 million

24th FP（Ending Sept. 2017） and Thereafter
Forecast cash distribution for the 24th FP＜Initial forecast＞

Increased by ＜Revised forecast＞¥ 2,170per unit
（announced on Nov. 15, 2016）¥ 30

Forecast cash distribution
for the 25th FP＜Newly announced forecast＞¥ 2,200per unit

¥ 2,220per unit

（announced on May 12, 2017）（announced on May 12, 2017）

Preconditions for forecast cash distribution above
Assets under management in each fiscal period

113properties Total acquisition price： ¥206.9 billion

Aggressively implement
Phase III, growth strategy
announced in May 2016, andstrive to achieve new cash
distribution targets

LTV

50.3％

Details on Page 38

7

Summary of Business Results for the 23rd FP
Actual cash
distribution
for the 23rd FP

Increase of 2.5%

¥2,234

Cash distribution exceeded forecast due to higher-thanexpected occupancy and other factors(Actual occupancy ratio 97.0% compared to forecast occupancy
ratio 96.0% (+1.0 pt))

from forecast for the 23rd FP

Increase of 4.1%

per unitfrom results of the 22nd FP

Comparison with Forecasts

Factors for difference from forecast

Forecast for the 23rd FP(announced on
Nov. 15, 2016)

The 23rd FP
Ended Mar. 31, 2017(182 days)(actual)Operating revenue¥6,857 million¥6,919 million¥61 million

0.9％

Operating income¥2,975 million¥3,060 million¥85 million

2.9％

Ordinary income¥2,412 million¥2,502 million¥90 million

3.7％

Net income¥2,410 million¥2,501 million¥91 million

3.8％

Provision for reserve
for reduction entry
Cash distribution per
unit¥2,180Operating income

Difference

Operating revenue¥31 million¥31 million¥2,234

2.5％¥54Comparison with Previous Fiscal Period
The 23rd FP
Ended Mar. 31, 2017(182 days)(actual)Operating revenue¥6,693 million¥6,919 million¥225 million

3.4％

Operating income¥2,739 million¥3,060 million¥321 million

11.7％

Ordinary income¥2,193 million¥2,502 million¥308 million

14.1％

Provision for reserve
for reduction entry
Cash distribution per
unit-¥20 million- ¥2 million

Ordinary income
Increase in non-operating revenue
Decrease in non-operating expenses：：+¥0 million- ¥4 million

Operating revenue：：
Increase in gain on sales of real estate properties ：Operating expense
Increase in expenses related to rent business：
Decrease in other business expenses：
Increase in rent revenue¥2,501 million¥308 million

14.1％¥8 million¥31 million¥23 million

269.0％¥2,234+¥21 million+¥8 million+¥32 million

Operating income

Change¥2,192 million¥2,145

Increase in other rent business revenue

Factors for change from previous period’s results

The 22nd FP
Ended Sept. 30, 2016(183 days)(actual)

Net income：：
Occurrence of gain on sales of real estate property ：Operating expense
Decrease in expenses related to rent business：
Decrease in other business expenses：
Increase in rent revenue

¥89

4.1％

Increase in other rent business revenue+¥197 million+¥14 million+¥13 million+¥40 million- ¥135 million

Ordinary income
Increase in non-operating revenue
Increase in non-operating expenses：：+¥0 million+¥12 million

Note : Amounts less than the indicated unit are rounded down and percentage figures are rounded to the first decimal place. The same applies hereafter.

8

Analysis of Change from Forecast Cash Distribution for the 23rd FP
Finalized figures of
23rd FP financial results

23rd FP（Ended March 2017）: October 1, 2016 to March 31, 2017 （182 days）

23rd FPNet income
Change in gain
/ losson salesChanges in rent business income / loss

¥2,501million
Changes in generaladministration expenses, nonoperating income / expenses, etc. Reserve for reduction

Forecast forthe 23rd FP

entry concerning gainon sale23rd FPNet income＋¥65million¥2,410million＋¥32million- ¥9million
Property disposed
during 23rd FP

Assumed properties for23rd FP forecasts
excluding property during
disposed the period

EM
YACHIYOMIDORIGAOKA

Reduced numberof managing days

- ¥5million
Additional
property acquired
during23rd FP

Property
disposed during
23rd FPEM MORISHITAEMYACHIYOMIDORIGAOKA

Occurred leasing
costs, etc.

Gains on sales
from disposition＋¥2million＋¥5million

GeneralAdministration
expensesNon-operating
Income /expenses, etc.
Reductionof borrowing
costs, etc.

Reduction of
consumption taxes
not eligible fordeduction, etc.

- ¥31million

Higher-than-expectedoccupancy ratio, etc.

＜Average occupancy ratio for assets under management during 23rd FP＞
Funds for cash
distribution¥2,410million

Forecast cash
distribution
per unit¥2,180

Forecasts

Results

Ratio of results toforecasts

Residence
Other real estate in trust(retail property)

：

96.0%

97.0%

+1.0 point：

100.0%

100.0%±0.0 point

Entire portfolio

：

96.2%

97.1%

+0.9 point

Cash distribution per unit turned upward by +¥54 (+2.5%)

Funds for cash
distribution¥2,469million

Finalized cash
distribution
per unit¥2,2349

Status of the 23rd FP-End Appraisal Value, etc.
Changes in unrealized Gain / Loss of the Entire Portfolio and NAV per Unit
(million yen)
30,00025,000

Unrealized gain / loss (left axis)

NAV per Unit (right axis)¥101,898¥97,222¥106,043¥112,937¥108,793（yen）
120,000
120,000
100,000
100,000

20,00080,00080,00015,00060,00060,00010,00040,00040,0005,000

20,00020,00000

0＋¥9,980 million＋¥14,691 million＋¥18,864 million＋¥21,655 million＋ ¥26,005 million

End of 19th FP(Mar. 31, 2015)

End of 20th FP(Sept. 30, 2015)

End of 21st FP(Mar. 31, 2016)

End of 22nd FP(Sept. 30, 2016)

End of 23rd FP(Mar. 31, 2017)

Appraisal value, etc.

¥194,662 million¥200,694 million¥207,565 million¥214,650 million¥226,015 million

Period-end bookvalue

¥184,681 million¥186,002 million¥188,701 million¥192,994 million¥200,010 million

Unrealized gain / loss

¥9,980 million¥14,691 million¥18,864 million¥21,655 million¥26,005 million

Unrealized gain / loss
ratio

+ 5.4%+ 7.9%+ 10.0%+ 11.2%+ 13.0%Note 1: “NAV per unit” for each fiscal period is calculated by subtracting total distribution in each fiscal period from the amount of market value net assets based on appraisal value, etc. and dividing the obtained amount with the number of investment units
issued and outstanding as of the end of each fiscal period. Also, the “Appraisal value, etc.” indicates either the appraisal value or survey value. The same applies hereafter.
Note 2: Period-end unrealized gain / loss = Period-end appraisal value, etc. – Period-end book value Period-end unrealized gain / loss ratio = Period-end unrealized gain / loss ÷ Period-end book value

Status by Asset Class

RetailProperty

Residence

End of 22nd FP

End of 23rd FP

Major factors in the change

Appraisal value, etc.

¥212,053 million ¥223,213 million

Period-end book value¥189,327 million ¥196,296 million

The appraisal value, etc. increased at 83 of 109 residential properties continuously held from the end of the
22nd FP to the end of the 23rd FP due to factors such as the decrease of cap rate (The values increased at 83
properties, stayed the same at 13 properties, and decreased at 13 properties)

Unrealized gain / loss＋¥22,725 million+¥26,916 million

Acquired three new properties at prices lower than appraisal value during the 23rd FP

Appraisal value, etc.

¥2,597 million¥2,802 million

The appraisal value increased ¥205 million due to factors such as the decrease of cap rate (10bp) of Hamamatsu Plaza

Period-end book value¥3,666 million¥3,714 million

Unrealized gain / loss

- ¥1,069 million- ¥911 million

The increase in capital expenditures in conjunction with the Hamamatsu Plaza Revitalization
Plan caused period-end book value to increase, but the increase in the appraisal value trimmed¥158 million from unrealized losses

10

MEMO

Ⅲ. External Growth Results for the 23rd FP

Prime Maison SHIROKANE-TAKANAWA

Prime Maison ICHIGAYAYAMABUSHICHO

Esty Maison MORISHITA

Summary of External Growth Results for the 23rd FP

Asset size (based on acquisition price)

Promoted portfolio enhancement through public offering and replacement of assets under management+ ¥8.5 billion¥206.9 billion+ ¥0.6 billion（113 properties）¥199.1 billion（111 properties）
Acquired two residential properties
through public offering
Prime Maison
SHIROKANE-TAKANAWA

Prime Maison
ICHIGAYAYAMABUSHICHO

Replacement of assets
under management
Esty Maison
YACHIYOMIDORIGAOKA

Esty Maison
MORISHITA

Disposition

Acquisition

Replaced

Acquisition price: ¥4.5 billion

End of 22nd FP (Ended Sept. 2016)

Internal reservewith property
disposition- ¥1.3 billion

Acquisition price: ¥4.0 billion

Nov. 1, 2016

Disposition price: ¥1.25 billion

Jan. 31, 2017

Acquisition price:¥0.62 billion

Mar. 17, 2017

End of 23rd FP (Ended Mar. 2017)

Implemented accumulation of internal reserves to ensure consistent management into the future

Total ¥ 214 million

Total ¥ 183 million
Internal reserve of ¥31 million, which is part of gain on sale from disposition of Esty Maison YACHIYOMIDORIGAOKA (¥32 million)

LTV

Implemented conservative LTV control through public offering and early repayments

53.5%

51.0%（estimate） 50.6%（estimate）

Equity capital increased¥9.7 billion through public offering

Implemented early repayment for ¥1.8 billion
by using funds procured through public offering

50.3%（estimate）

50.3%

Implemented early repayment for ¥1.2 billion by using proceedsfrom the disposition of Esty Maison YACHIYOMIDORIGAOKA

13

Overview of Assets Acquired for the 23rd FP
Prime Maison
SHIROKANE-TAKANAWA
Greater Tokyo /Major
Urban Areas

Property age

1.9 years

Property
Developed by
Sekisui House

Prime Maison
ICHIGAYAYAMABUSHICHO

Esty Maison
MORISHITAGreater Tokyo /Major
Urban Areas

Greater Tokyo /Major
Urban Areas

Acquisition Price

Property age

1.5 years

Acquisition Price¥ 4,500 million

Property age

0.2 years¥ 628 million

Appraisal value¥ 4,690 million

Appraisal value¥ 4,070 million

Appraisal NOI yields

Appraisal NOI yields

4.5%(After depreciation） 3.9%

(Before depreciation）¥ 636 million
Appraisal NOI yields

4.6%(After depreciation） 3.6%

4.6%
(After depreciation） 3.9%

(Before depreciation）

Proprietary route ofAsset Management
Company

Acquisition Price¥ 4,000 million

Appraisal value

Location

Property
Developed by
Sekisui House(Before depreciation）

Location

Ichigaya Yamabushicho, Shinjuku-ku, Tokyo

Location

Nearest station

Approx. 3-minute walk from Shirokanetakanawa Station on the Tokyo Metro
Namboku Line, etc.

Nearest station

Approx. 3-minute walk from Ushigomeyanagicho Station on the Toei Subway OedoLine

Nearest station

Approx. 5-minute walk from Kikukawa Stationon the Toei Subway Shinjuku Line

Leasable units

147 units

Leasable units

117 units

Leasable units

24 units

Residence type

Mainly of single and compact type

Residence type

Mainly of single and compact type

Residence type

Single and compact type

Acquisition dateNovember 1, 2016

Acquisition dateNovember 1, 2016

Acquisition date

March 17, 2017

Occupancy ratio

98.1% (As of the end of Mar. 2017)

Occupancy ratio

93.9% (As of the end of Mar. 2017)

Occupancy ratio

95.1% (As of the end of Mar. 2017)

Mita, Minato-ku, Tokyo

Kikukawa, Sumida-ku, Tokyo

Note: The reference date for the property ages above is the date of this document, and property ages are rounded down to the first decimal place. In addition, the above “Appraisal values” are those on the appraisal reports by real estate appraisers as of
the acquisition of the properties. “Appraisal NOI yields (before depreciation)” are calculated by dividing the appraisal NOI based on the direct capitalization method on the appraisal reports, which do not take depreciation into consideration, by theacquisition price and rounded to the first decimal place. “Appraisal NOI yields (after depreciation)” are the figures calculated by subtracting expected depreciation for each acquired asset for the 24th FP and 25th FP from the appraisal NOI mentioned
above, and dividing the gained amounts by the acquisition price and rounded to the first decimal place. The same applies to figures for acquired assets hereafter.

14

Replacement of Assets Under Management to Strengthen Portfolio
Overview of replacement of assets under management
Asset disposed as of Jan. 31, 2017 【Esty Maison YACHIYOMIDORIGAOKA】
LocationJanuary 10, 1998 (Property age 19 years)

Disposition price¥1,250 million

Actual NOI yields

Gain on salefrom disposition

Yachiyo-shi, Chiba (Greater Tokyo / Other Urban Areas)

Completion Date

Appraisal value

Asset acquired as of Mar. 17, 2017 【Esty Maison MORISHITA】
Location（Replaced）

Completion Date

February 9, 2017 (Property age 0.2 years)

Acquisition price¥628 million¥1,180 million（Before depreciation）4.6%（After depreciation）3.3%（After deducting overhead from disposition）¥636 million

Appraisal value(At the End of 22nd FP (Ended Sept. 2016)¥32 million

Sumida-ku, Tokyo (Greater Tokyo / Major Urban Areas)（Appraisal value as of the acquisition）

Appraisal NOI yields

Internally reserved part of gain on sale from
disposition as reserve for reduction entry forthe 23rd FP (ended March 31, 2017)

100.0

Occupancy%ratio（As of the end of Apr. 2017）（Before depreciation）4.6%（After depreciation）3.6%

Concluded purchase and sales contract of realestate before building construction was complete.
Completed leasing soon after acquisition

Note: The reference date for the age of disposed property listed above is the date of its disposition, and property ages are rounded down to the first decimal place. In addition, the “Actual NOI yields (before depreciation)” for the disposed property is
calculated by dividing the annualized actual NOI for the 22nd FP (ended September 30, 2016) by the acquisition price, and the “Actual NOI yield (after depreciation)” is calculated by subtracting the annualized actual depreciation from the 22nd FP(ended September 30, 2016) from the annualized actual NOI for the same period, and dividing that number by the acquisition price. These figures are rounded to the first decimal place. The same applies hereafter.

Significance of replacement of assets under management
Investment ratios in Greater Tokyo/ Major Urban Areas

Average property age ofresidential properties

69.3%
Increased by 0.6 points

9.7years

Decreased by 0.1 points

68.7%

Before replacement

9.6 years

After replacement

Before replacement

After replacement

NOI yield after depreciation
Increased by 0.3 points

3.6%
3.3%

Disposed asset

Acquired asset

Note: The “Investment ratios in Greater Tokyo / Major Urban Areas” above are calculated by dividing the total acquisition price of the residential portfolio categorized into the relevant investment areas around the time of replacement by the total acquisition
price of the entire residential portfolio, and are rounded to the first decimal place. In addition, the reference date for the property ages in “Average residential property age of residential properties” above is the date of this document for the entire
residential portfolio around the time of replacement, and average property ages are rounded down to the first decimal place.

15

Status of Residential Portfolio

End of 23rd FP(Mar. 31, 2017)

End of 22nd FP(Sept. 30, 2016)

End of 21st FP(Mar. 31, 2016)

Diversification status by area(based on acquisition price)
Major Cities
Nationwide
28.8%(34 properties)

Greater Tokyo /Major Urban Areas
67.2%（66 properties）

Greater Tokyo

71.2%

15 years or more
10.6%
（8 properties）

Greater Tokyo /15 years or more
Major Urban Areas
10.2%
67.4%
（8 properties）（68 properties）

Greater Tokyo

71.2%

Major Cities
Nationwide
27.7%(36 properties)

Greater Tokyo /15 years or more
Major Urban Areas
9.1%
69.3%
（7 properties）（71 properties）

Greater Tokyo

72.3%
Greater Tokyo/ Other Urban Areas
3.0%（5 properties）

Primarily Greater Tokyo

Less than 5 years
10.4%（9 properties）

More than
10 minutes
9.4%（13 properties）

Within 10 Minute walk

90.6%

More than
10 minutes
9.1%（13 properties）

Less than 5 years
14.5%（12 properties）

37.9㎡

30m2 to lessthan 50m2
25.0% (2,255 units)

Less than 30m2
50.5%
（4,562 units）

50m2 to lessthan 100m2 Average area
per unit
23.6%(2,196 units)

37.8㎡

30m2 to lessthan 50m2
25.2% (2,344 units)

Less than 30m2
50.6%
（4,712 units）

Within 3 minutes 100㎡or more
35.1%
0.6%（59 units）（31 properties）

Within 10 Minute walk
91.3%

5 years toless than More than 5 minutes More than 3 minutes
10 years to within 10 minutes to within 5 minutes
26.3%
29.9%
36.0%
(37 properties)(31 properties)(44 properties)

Primarily new properties

50m2 to lessthan 100m2 Average area
per unit
23.9%(2,162 units)

Within 3 minutes 100㎡or more
32.8%
0.6%（59 units）（30 properties）

Within 10 Minute walk
91.0%

More than
10 minutes
8.7%（13 properties）

Diversification status by floor area(based on leasable residential units)

Within 3 minutes 100㎡or more
32.6%
0.7%（59 units）（29 properties）

less than More than 5 minutes More than 3 minutes
10 years to within 10 minutes to within 5 minutes
37.4%
27.4%
30.7%
(44 properties)(37 properties)(30 properties)

Averageproperty age
9.6years

10 years toless than
15 years
40.4%(49 properties)

Diversification status
by walking distance to station(based on acquisition price)less than More than 5 minutes More than 3 minutes
10 years to within 10 minutes to within 5 minutes
38.8%
27.9%
30.2%
(44 properties)(36 properties)(28 properties)

Averageproperty age
10 years to10.0years 5 years toless than
15 years
42.0%(49 properties)

Greater Tokyo/ Other Urban Areas
3.8%（6 properties）

Less than 5 years
8.1%（7 properties）

Averageproperty age
10 years to 10.2years 5 years toless than
15 years
42.5%(47 properties)

Greater Tokyo/ Other Urban Areas
3.9%（6 properties）
Major Cities
Nationwide
28.8%(36 properties)

Diversification status by property age(as of the date of this document)(based on acquisition price)

Primarily properties near stations

50m2 to lessthan 100m2 Average area
per unit
22.9%(2,186 units)

37.3㎡

30m2 to lessthan 50m2
24.8% (2,369 units)

Less than 30m2
51.7%
（4,932 units）

Primarily single andcompact types

Note: The ratios of the above diversification statuses are rounded to the first decimal place. Accordingly, the ratios may not add up to 100% respectively. Also, “Average property age” uses the date of this document as the reference date and is calculated byseeking the weighted average of the property age of each property with the investment ratio calculated based on the acquisition price. “Average area per unit” is calculated based on the total leasable residential area of owned properties and the total
number of leasable residential units as of each period. Both are rounded down to the first decimal place.

16

Ⅳ. Internal Growth Results for the 23rd FP

Prime Maison SHIROKANE-TAKANAWA

Prime Maison ICHIGAYAYAMABUSHICHO

Esty Maison MORISHITA

Occupancy Ratio and NOI Yield
Monthly Occupancy Ratio
Residential properties

Other real estate in trust (retail properties)

Total

100%

97.4%

97.2%

96.7%

97.8%

96.8%

95%

90%

85%

80%

75%
Mar.
2015
End of19th FP

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Jan.
2016

Feb.

End of20th FP

Mar.

Apr.

May

June

July

End of21st FP

Sept.

Oct.

Nov.

Dec.

Jan.
2017

End of22nd FPFeb.

Mar.
End of23rd FP

Average NOI yield （before depreciation）

Occupancy Ratios
FP ended Mar. 31, 2016
(21st FP)Aug.

FP ended Sept. 30, 2016
(22nd FP)FP ended Mar. 31, 2017
(23rd FP)FP endedMar. 31, 2016
(21st FP)FP ended
Sept. 30, 2016
(22nd FP)FP endedMar. 31, 2017
(23rd FP)As of end of
the FP

Average for
the FP

As of end of
the FP

Average for
the FP

As of end of
the FP

Average for
the FP

Residential properties

97.0%

96.3%

96.7%

96.3%

97.7%

97.0%

5.1%

5.1%

5.1%

Other real estate in trust(retail properties)

100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

3.2%

3.6%

3.4%

Total

97.2%

96.5%

96.8%

96.5%

97.8%

97.1%

5.1%

5.0%

5.0%

Note 1: “Occupancy Ratios” in the above chart indicate the rate of total leased floor area to the total leasable floor area for the properties in each category held by the Investment Corporation as of the end of each month from March 2015 to March 2017.
Note 2: Among occupancy ratios in the above table, figures for “Average for the FP” for each period indicate the average of occupancy ratios as of the end of each month during the fiscal period ended March 31, 2016 (21st FP), the fiscal period ended
September 30, 2016 (22nd FP) and the fiscal period ended March 31, 2017 (23rd FP).
Note 3: “Average NOI yield (before depreciation)” in the above table are percentages calculated by dividing the total annualized actual NOI of each fiscal period by the total acquisition price with regards to each asset class the Investment Corporation owns
as of the end of the fiscal period ended March 31, 2016 (21st FP), the fiscal period ended September 30, 2016 (22nd FP) and the fiscal period ended March 31, 2017 (23rd FP).
Note 4: All of the figures above are rounded to the first decimal place.

18

Residential Properties Occupancy Status by Investment Area
Greater Tokyo / Major Urban Areas

Greater Tokyo / Other Urban Areas

Major Cities Nationwide

The occupancy ratio surpassed 96% during theperiod, and was higher than 97% at the end of theperiodOccupancy ratio fell temporarily during the first halfof this period, but flexible leasing kept the average
ratio for the period at a level exceeding 95%

Occupancy ratios for all the cities during the period
were consistently high. The Fukuoka area was
exceptionally high

Average occupancy ratio
during the FPpt： 96.7% +0.5
year-on-year

Average occupancy ratio
during the FP

pt： 95.5% +0.9
year-on-year

Average occupancy ratio
during the FPpt： 97.4% +0.8
year-on-year

Average NOI yield of owned
properties at period-end： 4.8% before
depreciation

Average NOI yield of owned
properties at period-end： 5.3% before
depreciation

Average NOI yield of owned
properties at period-end： 5.6% before
depreciation

Number of properties： 71 properties
Total leasable area
： 186,098.87㎡
Number of leasable units ： 5,499 units

Area
data

Area
data

Number of properties： 5 properties
Total leasable area
： 13,847.88㎡
Number of leasable units ： 359 units

Area
data

Number of properties： 36 properties
Total leasable area
： 166,829.56㎡
Number of leasable units ： 3,742 units

Note: The “Area data” above shows figures for properties owned as of the end of the 23rd FP (ended March 31, 2017).

Strategic leasing in favorable rental market conditions pushed the average occupancy ratio for the 23rd FP to a new high of 97.0%

Change in Occupancy Ratios by Investment Area

Greater Tokyo/Major Urban Areas
Major Cities Nationwide

Greater Tokyo / Other Urban Areas
Residences overall

100%

96.7%

97.7%

97.7%
96.0% 96.4%

96.7%
95%

96.7%

19

95.9%

97.0%

97.2%

96.7%

98.2%

97.7%

96.6%

96.2%

96.3%

97.1%

96.7%

97.3%

94.1%
90%
Average occupancy
ratio during the 20th FP
85%
End of Mar. 2015
(End of 19th FP): 95.5%End of June

Average occupancy
ratio during the 21st FP

End of Sept. 2015
(End of 20th FP): 96.3%End of Dec.

Average occupancy
ratio during the 22nd FP

End of Mar. 2016(End of 21st FP)

End of June

: 96.3%

Average occupancy
ratio during the 23rd FP

End of Sept. 2016(End of 22nd FP)

End of Dec.

: 97.0%End of Mar. 2017(End of 23rd FP)

Note: “Change in Occupancy Ratios by Investment Area” above shows the month-end occupancy ratios with classification by investment area based on residential properties owned as of the end of each month and are rounded to the fist decimal place.
Moreover, the “Average occupancy ratios” during each FP are the average occupancy ratios as of the end of each month during each FP.

19

Residential Properties New / Renewed Contract Rent Trends
Rent Trends in New Contracts

No. of new contracts
Total increase
in rent(number of cases)
Total decrease
in rent(number of cases)
Change in rent (net)Rate of change in rent
against previous rent

Rent Trends in Contract Renewals

19th FP

20th FP

21st FP

22nd FP

23rd FP

834¥1,357816¥1,744887¥1,576885¥1,472944¥1,871

（314）

（316）

（327）

（327）

（391）

thousandthousandthousandthousand

Change in rent (net)

¥125

¥55

¥74

¥109

Rate of change in rent
against previous rent

thousandthousandthousandthousandthousandthousand

-0.1%

0.4%

0.1%

0.3%

0.6%

Increased rent contract ratio

100%
30.3%

25%

0%

thousand

（77）

（54）

-¥2

-¥5

（1）

（2）

thousandthousand（31）

thousand

（29）

-¥7

（75）

-¥17

（2）

-¥15

（4）

（ 2）

thousandthousandthousandthousandthousand

0.2%

0.1%

0.0%

0.1%

0.1%

Decreased rent contract ratio

No rent change contract ratio

Increased rent contract ratio

100%
27.9%

31.2%

19.5%

24.1%

75%
50%

¥124

¥222

（184）

No rent change contract ratio

1,251

¥650

（213）

Decreased rent contract ratio

1,135
¥91

thousand

（277）

¥321

1,406
¥62

thousand

（228）

¥59

1,013
¥130

thousand

（253）

¥417

1,136
¥224

thousand-¥1,220-¥73

23rd FP

thousand-¥1,150thousand22nd FP

Total decrease
in rent(number of cases)-¥1,517thousand21st FP

thousand-¥1,326
thousand20th FP

Total increase
in rent(number of cases)

thousand-¥1,431
thousandNo. of renewed
contracts

19th FP

0.1%

0.1%

0.2%

0.4%

0.2%

75%
39.1%

32.0%

33.3%

31.9%

39.0%

37.6%

38.7%

36.9%

36.9%

41.4%

19th FP

20th FP

21st FP

22nd FP

23rd FP

50%

Rent Trends in New Contracts by Investment Area
23rd FP

93.1%

94.5%

93.8%

97.1%

97.7%

25%
5.3%

6.8%

0%

19th FP

20th FP

2.2%
21st FP

6.0%

2.6%
22nd FP

23rd FP

Rent Trends in Contract Renewals by Investment Area

Rate of change in rent

23rd FP

No. of renewed contracts

Change in rent (net)Rate of change in rent

¥519 thousand

0.6%

841

¥109 thousand

0.1%

52

-¥56 thousand

-1.2%

54

-¥1 thousand

-0.0%

274

¥186 thousand

0.7%

Greater Tokyo /Major Urban Areas
Greater Tokyo /Other Urban Areas
Major Cities
Nationwide356¥1 thousand

0.0%

944

¥650 thousand

0.6%

Total

1,251

¥109 thousand

0.1%

No. of new contracts

Greater Tokyo /Major Urban Areas
Greater Tokyo /Other Urban Areas
Major Cities
Nationwide

618

Total

Change in rent (net)Note: The “Rate of change in rent against previous rent” and “Rate of change in rent” above are the ratio of the total change in rent (net) for each fiscal period for new or renewed contracts against the total of previous
rent and both ratios are rounded to the first decimal place.

20

Status of Selected Management Data on Residential Properties
Trend in Unit Rent per Tsubo for Occupied Space
Based on residential properties owned as of the end of the 22nd FP(excluding a property disposed during the 23rd FP)
End of FP ended September 2016(end of 22nd FP)

End of FP ended March 2017(end of 23rd FP)

Period-end
occupancy ratio

Period-end unit rent per
tsubo

Period-end
occupancy ratio

Greater Tokyo /Major Urban Areas

95.9%¥12,93997.1%¥12,949

Greater Tokyo /Other Urban Areas

96.0%¥8,73897.1%

Major Cities Nationwide

95.3%¥7,351

Overall

95.7%¥10,691

Based on residential properties owned
as of the end of the 23rd FP
End of FP ended March 2017(end of 23rd FP)

Rate of change
in unit rent per tsubo

Period-end unit rent per (against end of 22nd FP)
tsubo

Period-end
occupancy ratio

Period-end unit rent per
tsubo

0.1%

97.0%

¥13,103¥8,746

0.1%

97.1%

¥8,74697.1%¥7,364

0.2%

97.1%

¥7,364

97.1%¥10,694

0.0%

97.0%

¥10,855* The figures do not include the rent and the floor area of shops and offices within residential properties as well as the rent and the floor area of residential properties in relation to which master lease agreements with rent
guarantee have been concluded with master lease companies for its calculation.

Changes in Key Money Acquisition Rate

Changes in Renewal Rate

（%）

（%）

100

Key Money Acquisition Rate continuously secured around 50% level

Continuously secured 80% level for Renewal Rate

100

85.8%
54.7%
50

48.8%

56.6%

54.2%

87.4%

86.2%

84.5%

21st FP

22nd FP

23rd FP

82.8%

57.5%
75

0

50

19th FP

20th FP

21st FP

22nd FP

23rd FP

19th FP

20th FP

Note: The “Key Money Acquisition Rate” indicates ratio of cases in which the Investment Corporation acquired key money among the number of new contracts in each FP, and the “Renewal Rate” is the ratio of thenumber of residential units at which contracts were renewed among the number of residential units with contracts maturing during each FP. Both of these ratios are rounded to the first decimal place.

21

Measures to Improve Profitability of Residential Properties
Construction for Replacement to LED Light Fixtures
Continuously implemented LED light fixture replacement work at common areas for the 23rd FP (ended Mar. 31,2017) as an environmentally friendly measure in order to reduce electricity costs, etc.
Implementation period

18th FP to 22nd FP

23rd FP

Property nameConstruction cost

Prime Maison GINZA EAST

¥ 76 million ¥ 23.9 million

and 24 other properties¥ 1 million

Esty Maison GOTANDA

24th FP to the dateof this document

Prime Maison MOMOCHIHAMA

Total

Progress at 28.6%
properties of the total of 112
residential properties

18th FP to the date
Of this document

and 5 other properties

32

Expected amount ofannual decrease¥ 12 million¥ 0.5 million¥ 4.3 million¥ 90 million ¥ 28.8 million

The expected decrease in costs including electricity
use costs due to replacement to LED light fixtures is¥ 28.8 million per year
All construction costs are capital expenditures, andeach period’s construction costs are expected tobe recoveredin three to four years with the reductionof electricity use costs and the like

Plans for the 24th FP and beyond call forcontinuing to make this replacement mainly
at properties where it is expected to behighly cost effective

Note: The “Expected amount of annual decrease” through replacement work to LED light fixtures was calculated by the Asset Management Company based on proposal materials prepared by the companies that
did the replacement work. There is no guarantee that the construction costs will be recovered as stated above.

Change elevator maintenance inspection companies
Changed elevator maintenance inspection companies in order to reduce the expense of elevator maintenanceand inspection work from the 23rd
Number of properties

Annual expense ofsuch work before change

Annual expense ofsuch work after change

Amount ofannual decrease

Of 112 residential
properties

Total for 50
properties

Total for 50
properties

Total for 50
properties

50 properties¥ 32 million¥ 22 million¥ 9.6 million

The change cut expense of such workroughly 30%
while maintaining (and even improving) the quality of themaintenance and inspection work

Plans for the 24th FP and beyond call forcontinuing to make this change

22

Measures to Maintain / Improve Asset Value of Residential Properties
Implemented large-scale repair works, etc. for the 23rd FP (ended March 31, 2017) in a planned
manner based on the results of deterioration diagnosis
Property namePrime Maison MOMOCHIHAMA（Property age 21.2 years）

Construction cost (excluding consumption tax)

¥ 114 million
out of which,

Esty Maison MUSASHIKOGANEI（Property age 12.2 years）¥ 73 million

Esty Maison KITASHINJUKU（Property age 12.7 years）¥ 43 million¥ 226 million
was capital expenditure

Details of work

Construction period

Repair and painting of exterior
walls and hallway floors and wallsof common areas, waterproofing
work for balconies, etc.

May 2016 to November 2016

Entrance repair work was done
simultaneously at Prime Maison
MOMOCHIHAMA

November 2016 to March 2017

November 2016 to March 2017

Prime Maison MOMOCHIHAMA
Repair of entrance approach

beforeRepair of elevator hall

after

Esty Maison MUSASHIKOGANEIRepair of exterior walls

beforebeforeafter

Esty Maison KITASHINJUKURepair of hallways in common areas

after

beforeafter

23

Present Status of Hamamatsu Plaza
Plans to open a shop by Costco Wholesale Japan, Ltd. gradually developed under the leadership ofSekisui House
Implemented the following work to enliven the entire facility and improve
its attractiveness and value as an asset ( A and B in the figure below)
Implementation
period23rd FP(Ended Mar. 2017)

Details of work

Maintained parking facilities,
renewed guidance signs（ A ）(including greenery plans)
Expanded facility EXIT（ B ）Concluded a new land lease agreement between the trustee and Costco Wholesale
Japan, Ltd. for the site of a gas station for Costco members ( C in the figure below)

Construction cost(excluding consumption tax)

¥ 60 million
out of which,¥56 million
was capital expenditure

Implementation
periodDetails of agreement

Agreement period

24th FP(Ending Sept.
2017)

Concluded a fixed-term landlease agreement for businesspurposes of a portion C of thesite of the Hamamatsu Plaza
parking lot

40 years fromthe operation
start date

Leased area

1,841.36㎡
Equivalent to 49% of quasico-ownership interest
owned by the Investment
CorporationA

Owned bySekisui House

C

100%

Owned bySekisui House
Quasi-co-ownership:

Owned bythe Investment
Corporation
Quasi-co-ownership:

51%

49%

B

Maintained parking spaces, delineated lanes and made other efforts to ensure the smooth, effective use of theparking lot and prevent traffic congestion around neighboring facilities
24

Ⅴ. Financial Activities for the 23rd FP

Prime Maison SHIROKANE-TAKANAWA

Prime Maison ICHIGAYAYAMABUSHICHO

Esty Maison MORISHITA

Equity Financing
Overview of the public offering in October 2016
Issuance Resolution Date
Pricing Date
Number of Newly Issued
Investment Units

Establishment of virtuous growth cycle throughsteady execution of growth strategies

October 7, 2016 (Fri.)
October 19, 2016 (Wed.)
87,400 units(of which, 4,160 units were third-party allotment portion)

Offer Price per Unit

¥114,855 (discount rate: 2.5%)

Issue Price per Unit

¥111,085 (underwriting fee: 3.2%)

Total Issue Price¥9,708 million(of which, ¥462 million was third-party allotment portion)

Sustained portfolio improvement through continuous
expansion of asset size
Creation of new borrowing capacity by lowering LTV ratio
Increased NAV per unit through public offering at a issue
price more than NAV per unit

Investment unit price after the issuance resolution date for the public offering in October 2016
120
Investment unit closing price

TSE REIT Index

TSE REIT Residential Index

Consistent outperformance of each index for the 23rd FP after issuance resolution

115

2016.10.7

2016.10.19

2016.10.27

Issuance Resolution Date

Pricing date

Additional listing dateof primary offering

Investment unit priceInvestment unit priceInvestment unit price¥117,300¥117,800¥121,500

110

105

100

95

90
Oct. 3, 2016

Nov. 2016

Dec. 2016

Jan. 2017

Feb. 2017

Mar. 2017

Mar. 31, 2017

Note: The graphs for each index indicated above are prepared by indexing the Investment Corporation’s investment unit closing price, and TSE REIT Index and TSE REIT Residential Index announced by Tokyo Stock Exchange, Inc. using therespective figure on October 7, 2016, the issuance resolution date, as 100.

26

Debt Financing（1）Overview of debt financing implemented for the 23rd FP（ended March 31, 2017）
Refinanced total debt of ¥9.5 billion due on February 28, 2017
＜Before refinancing＞
Averageborrowing term

＜After refinancing＞

Average interest rate
on procurement

Total debt

4.6 years ¥ 9.5 billion

1.02%
all fixed by interest
rate swap

Averageborrowing term

Total debt

7.8 years ¥ 9.5 billion

Average interest rate
on procurement

Extended average borrowing
terms while reducing averageinterest rate on procurement

0.66%（all fixed）

Note: The “Average borrowing term” above are the weighted average of borrowing terms up to the deadlines when the funds were initially borrowed based on the balances of the debts. These figures are rounded down to the first decimal place.
In addition, the “Average interest rate on procurement” are the weighted average of applied interest rates for each loan based on the balances of the debts. These percentages are rounded to the second decimal place.

Implemented early repayment for short-term borrowings in December 2016 and March 2017
Repaid amount

Reductions in interest by implemented early repayment

Repaid in Dec. 2016 and Mar. 2017

23rd FP (Ended Mar. 2017)24th FP (Ending Sept. 2017)

Total : ¥ 3 billion¥ 1.1 million¥ 2.5 million

Early repayment reduced interest
expenses of total of ¥3.7million by
the initial payment deadline

Note: The “Reductions in interest paid by implemented early repayment” above are estimates calculated by assuming that the applied interest rates after the early repayment were made are identical to those of the days the early repayment
were made, and subtracting the settlement amounts from the early repayment (break funding costs).

Maintaining the same level of borrowing cost rates as in the 22nd FP (ended September 30, 2016), and continuing
the approach of extending borrowing periods and fixing borrowing rates(%) ●Average borrowing cost rates (left axis)
1.50
1.38%
1.25%

1.20%

4.2 years
1.00

4.6years

4.9 years

4.5 years
1.09%

3.1 years(year)
6.0

Average remaining period of borrowing (right axis)

3.2 years

4.3 years

4.1 years

Japan Credit Rating Agency, Ltd.
（JCR）

4.3 years
4.0

1.04%

1.02%

1.01%

0.95%

Status of credit rating(as of the date of this document)

0.97%

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

0.50

15th FP(Ended Mar. 2013)

16th FP(Ended Sept. 2013)

17th FP(Ended Mar. 2014)

18th FP(Ended Sept. 2014)

19th FP(Ended Mar. 2015)

20th FP(Ended Sept. 2015)

21st FP(Ended Mar. 2016)

22nd FP(Ended Sept. 2016)

23rd FP(Ended Mar. 2017)

2.0

A+ （Stable）

Note 1: The “Average borrowing cost rates” above are calculated by dividing the (annualized) borrowing cost for each FP by the balance of FP average interest-bearing debt, and rounded to the second decimal place. “Borrowing costs” are calculated byadding borrowing-related expenses and interest expenses on investment corporation bonds to interest expenses (excluding expenses related to early repayments and commitment line contracts).
Note 2: The “Average remaining period of borrowing” above are the weighted average of the remaining periods until the repayment (redemption) dates of debts and investment corporation bonds at the end of each period divided by the balance of interestbearing debt at the end of each period. These figures are rounded down to the first decimal place.

27

Debt Financing（2）Ratios of Floating and Fixed Interest Rates

Ratios of Short-Term and Long-Term Borrowings

LTV Trends(Note 1,2)

(Note 1,2)

(Note 1,3)

Maintain stable ratio of borrowings with fixed interest

Maintain stable ratio of long-term borrowings

Floating

Short-term

(%)
100

Fixed

12.1%

6.9%

9.4%

(%)
100

80

80

60

60

87.9%

40

90.6%

93.1%

20

Long-term

6.9%（11.9% ）Of which, current portion of long-termborrowings and Investment Corporation bonds

2.8%（11.2%）（8.3%）

93.1%

40

100.0%

97.2%

Borrowing capacity up to 55% LTV

52.3%

53.5%

(billion yen )

50.3%

23
230
18
180

45
40

0

¥21.9 billion

End of 21st FP End of 22nd FP End of 23rd FP(Mar. 31, 2016) (Sept. 30, 2016) （Mar. 31, 2017）

Note 2: These are the ratios for the total interest-bearing debt.

13
130

808

¥11.8 billion¥6.8 billion

35

End of 21st FP End of 22nd FP End of 23rd FP(Mar. 31, 2016) (Sept. 30, 2016) （Mar. 31, 2017）
Note 1: The ratios above are rounded to the first decimal place.

LTV
(%)
55
50

20

0

Conservative LTV control

303

End of 21st FP End of 22nd FP End of 23rd FP(Mar. 31, 2016) (Sept. 30, 2016) （Mar. 31, 2017）

Note 3: LTV is calculated by dividing the total interest-bearing debt at the end of each period by total assets at theend of each period.

Maturity Ladder （as of the date of this document）
Diversify repayment deadlines by targeting ¥10 billion, the maximum commitment line amount（million yen） ■Long-term borrowings ■Investment corporation bonds
12,000Maximum commitmentline amount

10,000

2,500

8,000

(1,600)

6,000

9,900

9,500

8,382

4,000

4,000

6,792

9,830
8,100

7,100
4,400

2,000

2,705
0

3,000

2,000

2,100

2,500

6,500

5,400

3,000
5,500

4,100
1,900

2,400

3,600

FP ended
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP ending
FP endingMar. 31, 2017 Sept. 30, 2017 Mar. 31, 2018 Sept. 30, 2018 Mar. 31, 2019 Sept. 30, 2019 Mar. 31, 2020 Sept. 30, 2020 Mar. 31, 2021 Sept. 30, 2021 Mar. 31, 2022 Sept. 30, 2022 Mar. 31, 2023 Sept. 30, 2023 Mar. 31, 2024 Sept. 30, 2024 Mar. 31, 2025 Sept. 30, 2025 Mar. 31, 2026
(23rd FP)
(24th FP)
(25th FP)
(26th FP)
(27th FP)
(28th FP)
(29th FP)
(30th FP)
(31st FP)
(32nd FP)
(33rd FP)
(34th FP)
(35th FP)
(36th FP)
(37th FP)
(38th FP)
(39th FP)
(40th FP)
(41st FP)28

Debt Financing（3）Overview of Interest-Bearing Debt
End of 22nd FP (Sept. 30, 2016)

End of 23rd FP (Mar. 31, 2017)
Balance

Average Interest
Rate onProcurement(Note 2)¥3,000 million

0.2%

－

－

¥91,209 million

0.9%¥91,209 million

0.8%¥14,500 million

0.8%¥14,500 million

0.8%¥108,709 million

0.8%¥105,709 million

0.8%

LTV

53.5%

Counterparty

Maximum
commitment line
amountUnused commitment
Contract periodline balance

Nov.1,
2016

Mizuho Bank, Ltd.
The Bank of TokyoMitsubishi UFJ, Ltd.

¥10,000 million¥10,000 million

Sumitomo Mitsui
Banking Corporation

Oct.31,
2017

50.3%

Loans Payable Outstanding Balance by Financial Institution

1.4%
1.4%
1.4%
1.4%
1.4%

As of the date of this document

Financial Institution■ Mizuho Bank, Ltd.
■ Sumitomo Mitsui Banking Corporation■ The Bank of Tokyo-Mitsubishi UFJ, Ltd.

■ Mizuho Trust & Banking Co., Ltd.
■ Sumitomo Mitsui Trust Bank, Limited■ Mitsubishi UFJ Trust and Banking Corporation■ Development Bank of Japan Inc.
■ The Norinchukin Bank
■ Resona Bank, Limited.
■ The Bank of Fukuoka, Ltd.
■ Aozora Bank, Ltd.
■ Shinkin Central Bank
■ The Senshu Ikeda Bank, Ltd.
■ The Shizuoka Bank, Ltd.
■ The 77 Bank. Ltd.
■ The Hiroshima Bank, Ltd.
■ The Yamaguchi Bank, Ltd.
Total debt～

Average Interest
Rate onProcurement(Note 2)

Balance
Short-term loans
payableLong-term loans
payableInvestment
corporation bonds
Total interest-bearing
debt

Status of commitment line contract (As of the date of this document)

Outstanding Balance¥16,001 million¥15,741 million¥9,750 million¥8,030 million¥6,850 million¥6,592 million¥6,241 million¥4,752 million¥4,550 million¥2,400 million¥2,200 million¥1,600 million¥1,300 million¥1,300 million¥1,300 million¥1,300 million¥1,300 million¥91,209 million

Share

17.5%
17.3%
10.7%
8.8%
7.5%
7.2%
6.8%
5.2%
5.0%
2.6%
2.4%
1.8%
1.4%
1.4%
1.4%
1.4%
1.4%
100.0%

1.8%
2.4%
2.6%
17.5%
5.0%

Share ofFinancial
Institution

5.2%
6.8%

17.3%

7.2%
7.5%

10.7%
8.8%

Note 1: Concerning figures in the graphs and tables above, money amounts of less than one million yen are rounded down and percentage figures are rounded to the first decimal place.
Note 2: The “Average Interest Rate on Procurement” above is the weighted average of applied interest rates as of September 30, 2016 and March 31, 2017 based on the balances of debts. These figures are rounded to the first decimal place.
Note 3: The “Long-term loans payable” and “Investment corporation bonds” in the overview of interest-bearing debt above include Long-term loans payable and investment corporation bonds scheduled for repayment (redemption) within one year.

29

Ⅵ. CSR and Environmental Activities

Prime Maison SHIROKANE-TAKANAWA

Prime Maison ICHIGAYAYAMABUSHICHO

Esty Maison MORISHITAExamples of Past Initiatives in CSR and Environmental Activities
LED light fixture replacement work in common areas

Switching to energy-efficient air conditioners at exclusive areas

Implemented at a total of 26 properties as of March 31, 2017

Replaced a total of 505 A/C units as of March 31, 2017

Electricity consumption:： Expected annual reduction of approx. 925,054 kwh＜Advantages of switching from two-star to four-star energy-efficient air conditioners＞
Electricity consumption:： Expected annual reduction of approx. 13% per A/C unit

Greenhouse gas emissions: ： Expected annual reduction of approx. 479 ton

Greenhouse gas emissions: ： Expected annual reduction of approx. 112 kg per A/C unit

Note: Estimated by Asset Management Company based on materials provided by the
replacement work operator

Note: Estimated by Asset Management Company based on materials published by the Agency
for Natural Resources and Energy of the Ministry of Economy, Trade and Industry

Aiming to reduce electricity
consumption and greenhouse gas (CO2)emissions at common areas

Aiming to reduce electricity
consumption and greenhouse gas (CO2)emissions at exclusive areas

Installing water-saving equipment (flow control valves)

Installing disaster-relief vending machines

Implemented in a total of 168 locations as of March 31, 2017

Implemented in a total of 13 locations as of March 31, 2017

Installing flow control valves can help save water without negatively
affecting water pressure or other functionality, and each flow control
valve is expected to reduce consumption roughly 30%

Disaster-relief vending machines allow anyone to take out beverages at
no charge during disasters and other emergencies, while selling
beverages at normal times as ordinary vending machines

Note: Estimated by Asset Management Company based on materials provided by the
replacement work operator

Aiming to curb depletion of resources
by reducing water consumption incommon areas

Introducing facilities that allow residents tocontinue living safely and securely indisaster situations, and aiming tocontribute to the communities around ourproperties

Note: The figures for expected reductions above are estimates; there is no guarantee that the expected reductions will be realized.

31

Examples of Acquisition of Environmental Certification from External Agencies
DBJ Green Building Certification
Kobe Women’s Student Housing newly acquired the certification for the first time for the 23rd FP (ended March 31, 2017)
Certification rank

Kobe Women’s Student Housing

Assessment points

Environmentally friendly: Features LED lights in common areas among otherenergy-saving facilities.
Comfort and security: Liaison office arranges emergency hospital introductions
and support care; residents enjoy free access to sports club located nearby.
Buildings with high environmental
and social awarenessComprehensive safety / security system: Video intercom, 24-hour security guard.

Regular monitoring has resulted in the improvement of certification rank for the following properties
Property name

Certification rank
Previous
Current

Prime Maison SHINAGAWA（four stars）（five stars）

Prime Maison GINZA EAST

（three stars）（four stars）

Esty Maison OJIMA（two stars)）（three stars）

Reason for improved ranking
Proper review of repair plans for extending
lifetime of buildings and incidental facilities
and maintaining / enhancing asset value, andreflecting such in business plans, etc.

DBJ Green Building Certification＊”Prime Maison GOTENYAMA EAST” and“Prime Maison YOKOHAMA NIHONODORI” have also acquired four-starcertification.

The DBJ Green Building Certification System recognizes outstanding properties that respond to the needs of the times. The system was established based on a proprietary model developed by
the Development Bank of Japan Inc., and serves to improve the environmental functionality of buildings and encourage the prevalence of properties that demonstrate awareness of societal
demands.

GRESB
Acquired “Green Star” rating in the 2016 GRESB sustainability survey and selected as“Sector Leader” (ranked first) in Asia’s Residential Sector for the second consecutive year.
In addition, achieved “four stars” (out of five) in GRESB Rating introduced in 2016.
GRESBGRESB is a benchmark system for evaluating sustainability performance in the real estate sector to enhance shareholder value by applying Environmental, Social and Governance (ESG)
considerations to real estate investment and management. It was established in 2009 primarily by major European pension fund groups who initiated Principles for Responsible Investment (PRI).

32

Ⅶ. Forecasts for the 24th FP and the 25th FP

Prime Maison SHIROKANE-TAKANAWA

Prime Maison ICHIGAYAYAMABUSHICHO

Esty Maison MORISHITA

Forecast for the 24th FP
Forecast cash
distribution
for the 24th FP¥2,200Decrease of 1.5% fromresult for the 23rd FP

per unit

Cash distribution are expected to exceed initial forecast for the 24th
FP despite the extra expense of fixed asset taxes and the like for theeight properties acquired in 2016, and decrease of rent businessincome to seasonal factors and the like

Comparison between Forecasts for the 24th FP and Results for the 23rd FP
Reference
Initial forecast for the 24th FP
ending Sept. 30, 2017
(announced on Nov. 15, 2016)

The 23rd FP
ended Mar. 31, 2017(182 days) (actual)

Revised forecast forthe 24th FP
ending Sept.
30, 2017 (183 days)¥6,845 million¥6,919 million¥6,896 million

Factors for change between the 24th FP
forecasts and the 23rd FP results

ChangeOperating income
Operating revenue

Operating revenue-¥22 million-0.3%

Increase in rent revenue
Decrease in other rent business revenue
Decrease in gain on sales of real estate
properties

Operating income¥2,948 million¥3,060 million¥2,974 million-¥85 million-2.8%

Ordinary income¥2,401 million¥2,502 million¥2,434 million-¥68 million-2.7%

Net income¥2,399 million¥2,501 million¥2,432 million-¥69 million

-2.8%

－

¥31 million－-¥31 million-100.0%

Provision forreserve for
reduction entry
Cash distribution
per unit¥2,170¥2,234¥2,200

-¥34

-1.5%

： +¥32 million： -¥22 million： -¥32 million

Operating expense
Increase in expenses related to rent business
Increase in other business expenses： +¥44 million： +¥18 million

Ordinary income
Decrease in non-operating revenue
Decrease in non-operating expenses： -¥0 million： -¥18 million

Assumptions of forecast for the 24th FP ending Sept. 30, 2017
Assets under management ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・113 properties owned as of the date of this document
Average occupancy ratio for the FP ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ Residence 96.6%, Other real estate in trust (retail property) 100.0%,
Entire Portfolio 96.8%
Administration service fees ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Approx. ¥644 million
Fixed asset taxes, etc. that will be recorded as expenses related to rent business ・Approx. ¥424 million
Depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Approx. ¥1,601 million
Interest expenses, borrowing related expenses, etc. ・・・・・・・・・・・・・・・・・・・・・・・・・・Approx. ¥516 million
Amortization of investment unit issuance costs and investment corporation bondissuance costs ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・Approx. ¥23 million
Total number of investment units issued and outstanding ・・・・・・・・・・・・・・・・・・・・・・・・1,105,510 units
Note 1: Amounts less than the indicated unit are rounded down and percentage figures are rounded to the first decimal place.
Note 2: The above forecast figures are calculated based upon certain assumptions as of May 12, 2017. Actual operating revenue, operating income, ordinary income, net income and cash distribution per unit may differ as a result of subsequentacquisitions or disposition of real estate, trends in real estate markets, etc., changes in the operating environment or other conditions affecting the Investment Corporation, etc. The above forecasts are not intended to be guarantees of businessresults or cash distribution.

34

Analysis of Change in Forecast Cash Distribution for the 24th FP
Fiscal Period ending September 2017（the 24th FP）: April 1, 2017 to September 30, 2017（183 days）
Finalized figures Of
23rd FP Financial results
Net income
for the 23rd FP

Change in gain /loss on sales¥2,501 million

Changes in rent business income / loss

Reserve for reduction
entry concerning gainon sale from disposition-¥31million

Changes in general administration
expenses, non-operating income / Current revised
expenses, etc.
forecast
for the 24th FP
Net income
for the 24th FP- ¥32 million- ¥63million¥2,432 million＋¥20million

Properties disposed
during 23rd FP- ¥10million＋¥18million

Properties
Properties
Properties owned
Properties
disposedadditionally
as of the end of
acquiredacquiredthe 23rd FP
through PO during during the 23rd FP
Absence of gain on saleduring the 23rd FP
the 23rd FP
from disposition
EM YACHIYOMIDORIGAOKAEM YACHIYOMIDORIGAOKA

Excluded properties
acquired and disposedof during the 23rd FP as
shown on the rightFunds forcash distribution¥2,469 million

Actual cash
distribution
per unit¥2,234

Decrease due toseasonal factors andexpense of fixed asset
taxes ,etc.
Amount of reduction due tofixed assets taxes ,etc.
¥35 million accounted for

PM SHIROKANETAKANAWA
PM ICHIGAYAYAMABUSHICHO

Decrease due todisposition during the23rd FPEM MORISHITA

Increased due tooccupancy throughoutFP- ¥18million＋¥16million

GeneralNon-operating
Administration Income / expenses, etc.
expenses
Decrease of
Cost of General
Meeting ofUnitholders, etc.

Increased due
to occupancy
throughout FP
Amount of reduction due tofixed assets taxes ,etc.
¥11 million accounted for

Cash distribution per unit is expected to decrease by ¥34 （-1.5%）

borrowing costs, etc.

Funds forcash distribution¥2,432 million

Forecast cash
distribution
per unit¥2,200Aiming to increase the cash distribution level by making earnest efforts toward additional acquisitions worth ¥720
million, which is the amount of the asset size decrease for the 23rd FP due to the replacement of Esty Maison
YACHIYOMIDORIGAOKA and Esty Maison MORISHITA
35

Forecast for the 25th FP
Forecast cash
distribution
for the 25th FP¥2,220
per unit

Cash distribution expected to exceed the revised 24th FP forecast
due to anticipated increases in rent business income in the highseason for the real estate rental market, etc.

Increase of 0.9% fromforecast for the 24th FP

Comparison between Forecasts for the 25th FP and Forecasts for the 24th FP
Revised forecast for the
Forecast for the 25th FP
24th FP ending
ending March 31, 2018
September 30, 2017(182 days)(183 days)
Operating revenue
Operating income

Factors for change between the 25th FP
forecasts and the 24th FP forecasts

Change¥6,896 million¥6,938 million¥42 million

0.6%¥2,974 million¥2,989 million¥14 million

0.5%Operating income
Operating revenue
Increase in rent revenue
Increase in other rent business revenue

Ordinary income¥2,434 million¥2,456 million¥22 million

0.9%

Net income¥2,432 million¥2,454 million¥22 million

0.9%

Operating expense
Increase in expenses related to rent business
Decrease in other business expenses

Provision for reserve
for reduction entry

－

－

－

－

Cash distribution per
unit¥2,200¥2,220

¥20

0.9%

：
+¥7 million： +¥35 million： +¥29 million：- ¥1 million

Ordinary income
Decrease in non-operating expenses：- ¥7 million

Assumptions of forecast for the 25th FP ending Mar. 31, 2018
Assets under management ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 113 properties owned as of the date of this document
Average occupancy ratio for the FP ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・

Residence 96.7%, Other real estate in trust (retail property)
100.0%, Entire Portfolio 96.8%

Administration service fees ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ Approx. ¥662 million
Fixed asset taxes, etc. that will be recorded as expenses related to rent business ・ Approx. ¥424 million
Depreciation ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ Approx. ¥1,601 million
Interest expenses, borrowing related expenses, etc・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ Approx. ¥516 million

Amortization of investment unit issuance costs and investment corporation bond issuance costs・ Approx. ¥15 million
Total number of investment units issued and outstanding ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 1,105,510 units
Note 1: Amounts less than the indicated unit are rounded down and percentage figures are rounded to the first decimal place.
Note 2: The above forecast figures are calculated based upon certain assumptions as of May 12, 2017. Actual operating revenue, operating income, ordinary income, net income and cash distribution per unit may differ as a result of subsequentacquisitions or disposition of real estate, trends in real estate markets, etc., changes in the operating environment or other conditions affecting the Investment Corporation, etc. The above forecasts are not intended to be guarantees of businessresults or cash distribution.

36

Analysis of Change in Forecast Cash Distribution for the 25th FP
Fiscal Period ending March 2018 （the 25th FP）: October 1, 2017 to March 31, 2018 （182 days）
Current forecast
for the 25th FP

Current forecast
for the 24th FP
Net income
for the 24th FP

Changes in rent business income / loss

Changes in general administration
expenses, non-operating income /expenses, etc.

¥2,454 million¥2,432 million＋¥14million
Properties owned
as of the end of the
23rd FP
Excluded properties
acquired during the23rd FP as shown on
the right

Increase due toseasonal factors,
etc.

Funds forcash distribution‐¥0million‐¥1million＋¥1million

Properties acquired
Through PO during
the 23rd FP

Properties
additionallyacquired during
the 23rd FP

Generaladministration
expenses

PM SHIROKANETAKANAWAPM
ICHIGAYAYAMA
BUSHICHO

Expected tenant
turnoverEM MORISHITA

Expected tenant
turnoverDecrease of cost ofGeneral Meeting ofUnitholders andincrease ofcompensation paid,
etc.

＋¥7million
Non-operating
Income / expenses, etc.
Decrease of
amortization of
investment unit
issuance costs,
etc.

Impact of expense of fixed asset taxes and the like in and after the 26th FP for
Esty Maison MORISHITA（acquired in 2017）¥2,432 million¥2,200Funds forcash distribution¥2,454 million
Impact on cash
Approx.
distribution
per unit (estimate) ‐¥1

Forecast cash
distribution per unit

Net income
for the 25th FP＊ This is an estimate of the impact of the expense of fixed asset
taxes and the like for Esty Maison MORISHITA, which will
begin in the 26th FP (ending September 30, 2018).

Cash distribution per unit is expected to increase by ¥20 (+ 0.9 %)Forecast cash
distribution per unit

¥2,220Aiming to further increase the cash distribution level by striving for internal growth throughproactive leasing during the high season for the real estate rental market, and for external growthusing the capacity for acquiring properties
37

Future Distribution Policy
Actual Cash distributions per unit in FY2016 (22nd / 23rd FP)

Forecast Cash distributions per unit in FY2017 (24th / 25th FP)

Cash distribution reached ¥2,234 for the 23rd FP, which is the highest level
since growth strategies in collaboration with Sekisui House were launched

Changes due to seasonal factors, etc. are expected, but cash distributions in
the 2,200-yen range for both the 24th FP and 25th FP will be stably secured

Cash distributions for FY2016 reached the higher-4,300-yen range (annualized)

Cash distributions are expected to reach the 4,400-yen range (annualized) in
FY2017

Yearly cash distributions per unit
¥4,032
Annual cash
distribution¥4,161¥4,319¥4,316¥4,247¥4,379¥4,420Growth Strategy in Phase ｌｌｌ
Current target cash distributions per unit

Raise the cash
distribution level per FP¥3,590the 2,300-yen range
13th FP¥2,0232H (high season)
cash distribution

15th FP¥2,091

17th FP¥2,21219th FP¥2,18521st FP¥2,12523rd FP¥2,23425th FP¥2,220Target annual cash distribution

Aim for the 4,600-yen range

11th FP
¥1,958

Considering consumption tax
increase to 10% in October 2019
Impact on cash distribution:- ¥30 / unit

1H (low season)
cash distribution

10th FP¥1,632FY2010
performance

12th FP¥2,009FY2011
performance

14th FP¥2,070FY2012
performance

16th FP¥2,107FY2013
performance18th FP¥2,131FY2014
performance20th FP¥2,122FY2015
performance

22nd FP¥2,145FY2016
performance

24th FP¥2,200FY2017
performance

Borrowing capacity
to LTV 55%¥ 21.9 billion
Free cash flow throughdepreciation
Annually ¥ 3.2 billion (estimate)(forecast)
Note: As a five-for-one split of investment units was implemented on April 1, 2014, investment units have been traded at one-fifth (the ex-rights) unit price of the Investment Corporation. In consideration of the impact of
the split, actual figures of “Cash distribution per unit” for March 27, 2014 and earlier are divided by five. In addition, “Free cash flow” was calculated based on annual depreciation forecasts for the 113 properties
under management in the 24th FP (ending September 30, 2017).

38

Residential Properties Planned, Developed or Owned by Sekisui House Group
SponsorAsset management company

Supply information
Sekisui House
Development Department

Sekisui House
Asset Management

Exchange of opinions

Real Estate Investment Department

Demand information

13 out of 14 properties are in Greater Tokyo / Major Urban Areas (Tokyo ’23 wards:12, Yokohama-shi:1)
Sekisui House holds
property planningmeetings periodicallyCompleted properties

Under construction

Properties in
the planningstage

4 properties / 455 units in total

6 properties / 903 units in total

4 properties

Asset Management
Company participates
as an observer

Sekisui House plansand develops“Prime Maison” etc. basedon the property planningmeetings

3 propertiesinTokyo
23 wards

1 property
Prime Maison
SHIROKANEDAI TOWER(Shinagawa-ku, Tokyo)

220 units

Prime Maison
ASAKUSABASHI

Prime Maison
OTSUKA

Prime Maison
DAIKANYAMA(Taito-ku, Tokyo)（Toshima-ku, Tokyo）（Meguro-ku, Tokyo）

Prime Maison
MITATSUNAMACHI

64 units

144 units

27 units（Minato-ku, Tokyo）<Completed in Jan. 2017>18 units<Completed in May 2016> <Completed in Oct. 2016> <Completed in Jan. 2017>(Tentative name)Prime Maison
GOTENYAMA WEST
（Shinagawa-ku, Tokyo）

An example of“Prime Maison” properties
owned by Sekisui Houseother than the above

26 units<Completed in Jan. 2011>

in
Osaka-shiGranmast
KAYABAAn example of “MAST”
properties planned, developed orowned in recognition of theirvalues by Sekiwa Real Estatecompanies (7 companies)（Nagoya-shi, Aichi）

27 units<Completed in Feb. 2012>

Note: With regard to properties on this page, the Investment Corporation has no specific plans to acquire any of the properties above as of the date of this document. Also, image of the property that is “Under
construction” is renderings based on the design documents and may differ from the actual building.

39

（Reference） Growth Strategy in Phase III announced in May 2016

Expecting 5 to 7 years of implementation period
Sustained enhancement of the portfolio and financial base with a focus onunitholder’s interests

External growthstrategy

Ongoing external growth through the utilization of the property pipeline with the
Sekisui House Group
Promotion of profitability and qualitative improvement of the portfolio throughproperty replacements
Investment in diversified residential assets (student housing, company housing andserviced housing for the elderly)Internal growthstrategy

Increase of profitability of assets under management through the strengthening ofcollaboration with Sekiwa Real Estate companies
Maintenance and improvement of asset value through appropriate planned repairs
and value-adding work
Improvement of long-term added value through environmentally-conscious
management for the purpose of reducing CO2, etc.

Financialstrategy

Further expansion of market capitalization, liquidity and the investor base throughthe implementation of flexible public offerings
Maintenance of a firm financial base through conservative LTV control
Continuation of reduction of funding costs, basically pursuing long-term, fixedinterest, diversified borrowings

Strategic
targetPromote the increase of unitholder’s value andaim to become the leading residential REITManagement
policyAim for an asset size of ¥300 billion while maintaining / increasing the cash
distribution level40

Ⅷ. Appendix

Prime Maison SHIROKANE-TAKANAWA

Prime Maison ICHIGAYAYAMABUSHICHO

Esty Maison MORISHITA

Balance Sheet（1）22nd Fiscal Period(As of September 30, 2016)
Million yen

23rd Fiscal Period(As of March 31, 2017)

Percent of total

Million yen

ChangePercent of total

Million yen

Period on period (%)

AssetsCurrent assets

Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Consumption taxes receivable
Prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets

4,001
5,007
112
1
169
0
0
-3
9,289

4.6

3,793
5,096
146
150
0
0
-2
9,184

94.9

106,007-16,30989,697
983
-243
739
2,022
-618
1,403
298
-100
197
107,827
199,866

0.1

143
0
144

0.4
95.4

242
473
152
868
200,879

4.4

-208
88
33
-1
-18
-0
-0
1
-105

-1.1

95.1

2,027
-1,209
818
82
-25
57
49
-46
2
34
-13
20
6,119
-52
6,966

3.6

0.1

-2
-0
-2

-1.5

0.4
95.6

23
7
30
6,995

3.7
3.6

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
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

103,979-15,100
88,879
900
-218
682
1,972
-572
1,400
263
-86
177
101,70852
192,900
145
0
146
242
450
144
837
193,88442

Balance Sheet（2）22nd Fiscal Period(As of September 30, 2016)
Million yen

23rd Fiscal Period(As of March 31, 2017)

Percent of total

Million yen

ChangePercent of total

Million yen

Period on period (%)

AssetsDeferred assets
Investment corporation bond issuance costs
Investment unit issuance costs

Total deferred assets
Total assets

59
23
83
203,257

0.0

52
49
102

0.0

-7
26
18

100.0

210,166

100.0

6,908

22.3
3.4

Liabilities
Current liabilities
Operating accounts payable

412
3,000

314
-

-97
-3,000

-

4,000

4,000

12,205
601
55
1
236
12
16,526

8.1

4,805
569
54
1
11
230
10
9,996

4.8

-7,400
-32
-1
-0
11
-6
-2
-6,529-39.5

14,50079,004
1,934
95,439111,96547.0
55.1

10,50086,404
1,946
98,850108,84747.0
51.8-4,000
7,400
11
3,411
-3,117

3.6-2.8

88,925

43.7

98,633

46.9

9,708

10.9

Total net assets

174
174
2,192
2,366
91,292
91,292

1.2
44.9
44.9

183
183
2,501
2,684
101,318
101,318

1.3
48.2
48.2

8
8
308
317
10,026
10,026

13.4
11.0
11.0

Total liabilities and net assets

203,257

100.0

210,166

100.0

6,908

3.4

Short-term loans payable
Current portion of investment corporation
bonds

Current portion of long-term loans payable
Accounts payable – otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Other
Total current liabilities

Non-current liabilities
Investment corporation bondLong-term loans payable
Tenant leasehold and security deposits in trust

Total non-current liabilities

Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Voluntary retained earnings
reserve for reduction entry
total voluntary retained earnings
Unappropriated retained earnings
Total surplus
Total unitholders’ equity

43

Statement of Income and Retained Earnings
22nd Fiscal Period(from April 1, 2016 to
September 30, 2016)

23rd Fiscal Period(from October 1, 2016 to
March 31, 2017)

Million yen

Million yen

Percent of total

Percent of total

ChangeMillion yen

Period on period (%)

Operating revenue
Rent revenue - real estate
Gain on sales of real estate properties
Total operating revenue

6,674
18
6,693

100.0

6,886
32
6,919

100.0

212
13
225

3,218
484
15
35
3
0
195
3,953

59.1

3,259
360
16
36
3
1
181
3,858

55.8

40
-123
0
0
1
-13
-95

2,739

-2.4

40.9

3,060

44.2

321

11.7

0.0

0
0
0
0

0.0

-0
0
-0
0

29.0

395
56
7
72
14
0
546

8.1

394
56
7
79
21
0
558

8.0

-0
-0
-0
6
6
0
12

2.3

2,193

32.8

2,502

36.2

308

14.1

2,193
1
0
1

32.8

36.2

0.0

2,502
1
0
1

0.0

308
-0
-0
-0

14.1
-2.7
-98.8
-15.7

2,192

32.8

2,501

36.2

308

14.1

32.8

2,501

36.2

308

14.1

3.4

Operating expenses
Expenses related to rent business
Asset management fee
Asset custody fee

Administrative service fees
Directors’ compensations
Provision of allowance for doubtful accounts
Other operating expenses
Total operating expenses

Operating income
Non-operating income
Interest income
Reversal of distributions payable
Other
Total non-operating income

0
0
0
0

Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bond issuance costs

Borrowing related expenses
Amortization of investment unit issuance costs
Other
Total non-operating expenses
Ordinary Income
Income before income taxes
Income taxes – current
Income taxes – deferred

Total income taxes

Net income
Retained earnings brought forward
Unappropriated retained earnings

2,192

44

Statements of Cash Flows / Cash Distributions
Statement of Cash Flows
22nd Fiscal Period
from April 1, 2016 to
September 30, 2016

23rd Fiscal Period
from October 1, 2016 to
March 31, 2017

Million yen

Million yen

Cash flows from operating activities

22nd Fiscal Period
from April 1, 2016 to
September 30, 2016

23rd Fiscal Period
from October 1, 2016 to
March 31, 2017

Million yen

Million yen

Cash flows from financing activities

Income before income taxes

2,193

2,502

Proceeds from short-term loans payable

4,500

-

Depreciation

1,582

1,606

Repayments of short-term loans payable-8,700-3,0007

7

Proceeds from long-term loans payable

12,0009,500

Amortization of investment unit issuance costs

14

21

Repayments of long-term loans payable-2,800-9,500

Increase (decrease) in allowance for doubtful accounts-0-1

Proceeds from the issuance of investment units

-

9,661

Interest income-0-0Dividends paid

-2,162-2,183

Interest expenses

451

450

Net cash provided by financing activities

2,837

4,477

Decrease (increase) in operating accounts receivable

40

-33

Net increase (decrease) in cash and cash equivalents

564

-119

Decrease (increase) in prepaid expenses

-23

23

Cash and cash equivalents at the beginning of period

8,444

9,009

Decrease (increase) in consumption taxes receivable-1

1

Increase (decrease) in operating accounts payable-224

Cash and cash equivalents at the end of period

9,009

8,889

Increase (decrease) in accounts payable – other

23

-141

Increase (decrease) in consumption taxes payable

-17

11

Amortization of investment corporation bond issuance costs

Increase (decrease) in advances received-1-6

Decrease due to sale of property, plant and equipment in trust

1,502

1,168

Decrease (increase) in long-term prepaid expenses

-99

-28

Other, net

11

-2

5,680

5,603

SubtotalInterest income received

0

0

-449

-452

-3

-1

5,226

5,150

-7,411-9,751-0-0Proceeds from tenant leasehold and security deposits in trust

140

155

Repayments of tenant leasehold and security deposits in trust

-221

-143

Decrease (increase) in investments and other assets, net-5-7-7,498-9,747

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

Net cash used in investing activities

Statement of Cash Distributions
22nd Fiscal Period
from April 1, 2016 to
September 30, 2016

23rd Fiscal Period
from October 1, 2016 to
March 31, 2017

yen

yen

Ⅰ Unappropriated retained earnings

2,192,416,724

2,501,336,041

Ⅱ Cash distributions

2,183,845,950

2,469,709,340[2,145][2,234]

Provision for reserve for reduction entry

8,570,774

31,626,701

Ⅳ Retained earnings carried forward

00[Cash distributions per unit]
Ⅲ Voluntary retained earnings

45Summary of Selected Financial Data

Business days

22nd Fiscal Period
from April 1, 2016 to
September 30, 2016

23rd Fiscal Period
from October 1, 2016 to
March 31, 2017

183 days

182 days

Total assets

203,257 million yen 210,166 million yen

Net assets

91,292 million yen 101,318 million yen

Unitholders’ capital

88,925 million yen

98,633 million yen

1,018,110 units

1,105,510 units

89,668 yen

91,648 yen

2,183 million yen

2,469 million yen

2,145 yen

2,234 yen

Ordinary income to total assets (annualized) (Note 1)

2.2%

2.4%

Return on unitholders’ equity (annualized) (Note 2)

4.8%

5.2%

Unitholders’ equity ratio (Note 3)

44.9%

48.2%

111

113

376,936.98㎡

380,893.44㎡

96.8%

97.8%

1,582 million yen

1,606 million yen

302 million yen

397 million yen

Leasing Net Operating Income (NOI) (Note 4)

5,038 million yen

5,234 million yen

Funds from Operation (FFO) (Note 5)

3,756 million yen

4,075 million yen

3,689 yen

3,686 yen

Investment units issued
Net assets per unit
Total cash distributions
Cash distributions per unit

Total number of properties
Total leasable floor area
Period-end occupancy ratio
Depreciation expense (Expenses related to rent business)

Capital expenditures

FFO per unit
Total interest-bearing debt

108,709 million yen 105,709 million yen

Loan to Value (LTV) (Note 6)

53.5%

50.3%

Interest-bearing debt ratio (Note 7)

55.0%

51.7%

9.4 times

10.1 times

Debt Service Coverage Ratio (DSCR) (Note 8)

Note 1: Ordinary income to total assets = Ordinary income (annualized) / Average total assets
Average total assets = (Period-beginning total assets + Period-end total assets) / 2
Note 2: Return on unitholders’ equity = Net income (annualized) / Average net assets
Average net assets = (Period-beginning net assets + Period-end net assets) / 2
Note 3: Unitholders’ equity ratio = Period-end net assets / Period-end total assets
Note 4: Leasing NOI = Leasing income for the fiscal period (Rent revenue-real estate - Expenses related to rent
business) + Depreciation expense (Expenses related to rent business)
Note 5: FFO = Net income - Gain on sales of real estate properties + Loss on sales of real estate properties +Depreciation
Note 6: LTV = Period-end total interest-bearing debt / Period-end total assets
Interest-bearing debt = Borrowings + Investment corporation bonds
Note 7: Interest-bearing debt ratio = Period-end interest-bearing debt
/ (Period-end interest-bearing debt + Unitholders’ capital)
Note 8: DSCR = (Net income + Repayment of interest-bearing debt + Interest expenses + Depreciation)/ (Repayment of interest-bearing debt + Interest expenses)* Ratios are rounded to the nearest first decimal place.

46

History Since Establishment of Collaborative System with Sekisui House Group
Transition to structure with
Sekisui House as sole sponsor

Business managed through joint sponsorship, with Sekisui House as the main sponsor

210,000

Trade name change in June 2017 (scheduled)

Properties acquired from Sekisui House
Properties acquired from Sekiwa Real Estate companies

113

properties

Properties acquired from third parties
Properties disposed

111

107

Trade name change

properties

188,771

190,000

110

properties

191,020properties
108
properties 199,163

206,943

193,89099

properties(56,005)

171,099
170,000(38,345)(38,345)(42,615)(47,505)95

properties(24,030)

151,74489

properties

150,000

141,472
77

Trade name change

properties

128,794130,000

110,000(7,510)(22,275)(9,180)(10,930)(12,220)(14,140)(14,140)(16,075)(3,750)53

57

properties

53

properties

properties

99,92099,920103,974(3,340)66

properties

58

properties

60

106,234 properties(3,340) 101,006(3,340)(1,920)110,214(8,140)(1,920)90,000(3,270)(16,075)(3,270)

Apr. 21, 2014

Oct. 22, 2014

Public offering

Public offering

Public offering

Public offering

Public offering

20,460 units

Oct. 1, 2012

21,430 units

Apr. 22, 2013

111,600units 97,970 units

83,240 units

Oct. 26, 2016

Oct. 26, 2012

May 23, 2013

May 22, 2014

Nov. 18, 2014

Nov. 14, 2016

Third-party
allotment

Third-party
allotment

Third-party
allotment

Third-party
allotment

Third-party
allotment

1,540 units

1,105 units

5,615 units

4,900 units

4,160 units

Aim to expand asset size while striving to maintain andimprove the cash distribution level

Total
AcquisitionPrice（million yen）

70,0000
Disposition of part ofHamamatsu Plaza
East

Disposition of part of
HAMAMATSU Plaza, etc.

-10,000

Disposition of
1 property

Disposition of
1 property
Disposition of part of
1 property and 1 property Disposition of
5 properties

Disposition ofpart of 1 property
and 1 property

Disposition of
1 property

End of 9th FP End of 10th FP End of 11th FP End of 12th FP End of 13th FP End of 14th FP End of 15th FP End of 16th FP End of 17th FP End of 18th FP End of 19th FP End of 20th FP End of 21st FP End of 22nd FP End of 23rd FP(Mar. 31, 2010) (Sept. 30, 2010) (Mar. 31, 2011) (Sept. 30, 2011) (Mar. 31, 2012) (Sept. 30, 2012) .(Mar 31, 2013) (Sept. 30, 2013) (Mar. 31, 2014) (Sept. 30, 2014) (Mar. 31, 2015) (Sept. 30, 2015) (Mar. 31, 2016) (Sept. 30, 2016) (Mar. 31, 2017)

LTV

48.9%

Cash
distribution ￥2,010
per unit

47.1%

48.3%

49.3%

51.5%

52.1%

53.4%

51.0%

53.4%

52.3%

51.1%

51.5%

52.3%

53.5%

50.3%

￥1,632 ￥1,958 ￥2,009 ￥2,023 ￥2,070 ￥2,091 ￥2,107 ￥2,212 ￥2,131 ￥2,185 ￥2,122 ￥2,125 ￥2,145 ￥2,234

Note 1: “LTV” is calculated by dividing the total interest-bearing debt at the end of each period (total borrowings, investment corporation bonds, interest-bearing tenant leasehold and security deposits) by total assets at the end of each period. Thesefigures are rounded to the first decimal place.
Note 2: A five-for-one split of investment units was implemented on April 1, 2014, To account for the effect of the split, the actual figures for the “cash distribution” in and before the 17th FP (ended March 31, 2014) have been divided by five.

47

Portfolio Map （1）Osaka-shi（as of the date of this document）

Nagoya-shi
41
29
28
20

73
72
23

68 66
51 92 52
65

96
50

97

111
58

116

109

40

59
11

60

100 101
102

Greater Tokyo / Other Urban Areas

Fukuoka-shi

85
103
67

86

33
54 42
34

19
69

61

44
104

82

36 47 46
35 55
93

8
119
75

114

70

4
5
105
17

53

77
37

6 91

10

84

56
16
120 94

95

98
88

48

117 113

89

45

115

63

107

62

87

83 79
80
81

57

3
76 31
27
118 106

64 1

74
24 90
99 39
21 78
43 71
26
25

108

1

14

Portfolio Earthquake PML

2.38%（Entire portfolio）

110
12
30

●Residence (property number)◆Retail Property (property number)
22

15

Note: “Portfolio Earthquake PML” is as of the survey in March 2017 on assets owned at the end of the 23rd FP (ended March 31, 2017).
112

Greater Tokyo / Major Urban Areas

48

Portfolio Map （2）Greater Tokyo / Major Urban Areas
Residence

Residence

Residence-1

Esty Maison GINZA

Residence
Residence-63

Esty Maison SASAZUKA

Residence-118 Prime Maison SHIROKANE-TAKANAWA

Residence-3

Esty Maison AZABUNAGASAKA

Residence-64

Prime Maison GINZA EAST

Residence-119 Prime Maison ICHIGAYAYAMABUSHICHO

Residence-4

Esty Maison EBISU II

Residence-69

Esty Maison SENGOKU

Residence-120 Esty Maison MORISHITA

Residence-5

Esty Maison EBISU

Residence-70

Esty Maison DAIZAWA

Residence-6

Esty Maison KANDA

Residence-71

Esty Maison TOGOSHI

Residence-8

Esty Maison KITASHINJUKUResidence-74

Esty Maison SHIROKANEDAI

Residence-10

Esty Maison ASAKUSA KOMAGATA

Residence-75

Esty Maison HIGASHISHINJUKUResidence-12

Esty Maison KAWASAKI

Residence-76

Esty Maison MOTOAZABUResidence-14

Esty Maison SHINKAWASAKI

Residence-77

Esty Maison TORITSUDAIGAKU

Residence-15

Esty Maison YOKOHAMA

Residence-78

Esty Maison MUSASHIKOYAMA II

Greater Tokyo / Other Urban Areas
Residence

Residence

Residence-11

Esty Maison MACHIDA

Residence-109 Esty Maison TSUTSUJIGAOKA

Residence-40

Esty Maison HACHIOJIMINAMINO

Residence-111 MAST LIFE HINO

Residence-50

Prime Maison MUSASHINONOMORI

Residence-16

Esty Maison KAMEIDO

Residence-79

Esty Maison NAKANO

Residence-17

Esty Maison MEGURO

Residence-80

Esty Maison SHINNAKANO

Residence-19

Esty Maison SUGAMO

Residence-81

Esty Maison NAKANOFUJIMICHO

Residence-21

Esty Maison MEGUROHONCHO

Residence-82

Esty Maison TETSUGAKUDO

Residence-22

Esty Maison HAKURAKU

Residence-83

Esty Maison KOENJI

Residence-24

Esty Maison GOTANDA

Residence-84

Esty Maison OSHIAGE

Residence-20

Esty Maison KYOBASHI

Residence-67

Prime Maison TERIHA

Residence-25

Esty Maison OISENDAIZAKA

Residence-85

Esty Maison AKABANE

Residence-23

Esty Maison MINAMIHORIE

Residence-68

Esty Maison HIGASHISHIRAKABE

Residence-26

Esty Maison SHINAGAWA SEASIDE

Residence-86

Esty Maison OJI

Residence-28

Esty Maison JOTO

Residence-72

Esty Maison KAWARAMACHI

Residence-27

Esty Maison MINAMIAZABUResidence-87

Prime Maison WASEDA

Residence-29

Esty Maison TSUKAMOTO

Residence-73

Esty Maison NISHITENMA

Residence-30

Esty Maison KAWASAKI II

Residence-88

Prime Maison HATCHOBORIResidence-35

Esty Maison TENJINHIGASHI I

Residence-92

Esty Maison AOIResidence-31

Esty Maison AZABUJUBAN

Residence-89

Prime Maison JINBOCHO

Residence-36

Esty Maison TENJINHIGASHI II

Residence-93

Esty Maison YAKUIN

Residence-33

Esty Maison ITABASHIHONCHO

Residence-90

Prime Maison GOTENYAMA EAST

Residence-37

Esty Maison SHIJONISHINOTOIN

Residence-96

Prime Maison FUJIMIDAI

Residence-34

Esty Maison OIZUMIGAKUEN

Residence-91

MAST LIFE AKIHABARA

Residence-41

Esty Maison NISHINAKAJIMA

Residence-97

Esty Maison TSURUMAI

Residence-39

Esty Maison HIGASHISHINAGAWA

Residence-94

Esty Maison KINSHICHO II

Residence-46

Esty Maison HAKATAHIGASHI

Residence-100 Prime Maison ODORI KOEN

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

Residence-95

Esty Maison OJIMA

Residence-47

Esty Maison KAMIGOFUKUResidence-101 Prime Maison MINAMI 2-JO

Residence-43

Esty Maison MUSASHIKOYAMA

Residence-98

Prime Maison MORISHITA

Residence-51

Prime Maison HIGASHISAKURA

Residence-102 Prime Maison KAMOKAMOGAWA

Residence-44

Esty Maison SENDAGIResidence-99

Prime Maison SHINAGAWA

Residence-52

Prime Maison KAYABAKOEN

Residence-103 Prime Maison CENTRAL PARK

Residence-45

Esty Maison YOTSUYASAKAMACHI

Residence-104 MAST LIFE YAHIRO

Residence-55

MAST HAKATA

Residence-107 Granmast KANAZAWA NISHIIZUMIResidence-48

Esty Maison SANGENJAYAResidence-105 Prime Maison EBISU

Residence-58

Prime Maison GOKISO

Residence-108 Granmast UNOMORI

Residence-53

Esty Maison SANGENJAYA IIResidence-106 Esty Maison SHIBAURA

Residence-59

Prime Maison YUHIGAOKA

Residence-113 KOBE Women’s Student Housing

Residence-54

Esty Maison ITABASHI C6Residence-110 Esty Maison KOHOKU TSUNASHIMA

Residence-60

Prime Maison KITATANABE

Residence-116 Esty Maison UEMACHIDAIResidence-56

Esty Maison KINSHICHO

Residence-112 Prime Maison YOKOHAMA NIHON-ODORIResidence-61

Prime Maison MOMOCHIHAMAResidence-117 Esty Maison KOBE-SANNOMIYA

Residence-57

Esty Maison MUSASHIKOGANEIResidence-114 Prime Maison SHIBUYAResidence-65

Prime Maison TAKAMI

Residence-62

Esty Maison AKIHABARA

Residence-115 Prime Maison HATSUDAIResidence-66

Prime Maison YADAMINAMI

Major Cities Nationwide
Residence

Residence

Other Real Estate in Trust (Retail Property)
Retail-1

HAMAMATSU Plaza

49

Portfolio Development Policy
Investment target

Promote the establishment of portfolio that centers on high quality rental
residential properties planned and developed by the Sekisui House Group

Invests only in real estate-related assets that are mainly used (Note)
as residences
Residences include student dorms, company housing andserviced housing for the elderly

considering making the decision to sell the Existing Retail Property
in a timely manner while striving for their stable management.

Note : “Mainly used” means that a majority of the total exclusive area of the relevant real estate-related asset is allocated for the specific use.

Target Investment Areas
Set Greater Tokyo / Major Urban Areas as the focused investment area for the portfolio

Establish an investment area called Major Cities Nationwide in the investmentarea categories outside Greater Tokyo and diversify investment
Investment area category
Greater Tokyo / Major Urban Areas

GreaterTokyo

Focused investment area
Greater Tokyo / Other Urban Areas

Major Cities
Nationwide

Major Urban Areas
Other Major Cities Nationwide

Maximally utilize the nationwide networkof the Sekisui House Group
Allocation ratio (Note 3)(based on acquisition price)

Specific area
① Tokyo： Tokyo 23 wards, Musashino-shi, Mitaka-shi, and Koganei-shi② Kanagawa： Yokohama-shi and Kawasaki-shi

Approx. 70%① Tokyo areas (except islands) and Kanagawa other than the above② Chiba and Saitama

Approx. 30%① Sapporo-shi, Sendai-shi, Nagoya-shi, Kyoto-shi, Osaka-shi, Kobe-shi, Hiroshima-shi and Fukuoka-shi② Areas within commuting distance from ① above (Note 1)

10% or less for
Other Major Cities Nationwide

Government designated cities, etc. other than the above (Note 2)

Note 1: “Areas within commuting distance” represent the peripheral areas from which it generally requires around 30 minutes to commute to the central parts of Sapporo-shi, Sendai-shi, Nagoya-shi, Kyoto-shi, Osaka-shi,Kobe-shi, Hiroshima-shi and Fukuoka-shi.
Note 2: “Government designated cities, etc. other than the above” represent cities in areas other than Greater Tokyo and that fall under the category of either government designated cities, core cities, special ordinancecities at the entry into force or prefectural capitals in areas other than Major Urban Areas.
Note 3: “Approx.” in the allocation ratio means ± 10%.
Note 4: Retail property owned as of the date of this document has been excluded from the calculation of the above allocation ratio.

Residence TypeWith regard to the types of rental housing that will be targets of investment, investment will be made in a wide range of rental housing types
in order to respond to the various needs of residents.

Single / Compact

FamilyLarge

Had already been positioned as a main investment target

Properties that are expected to have stable profitability
considering their area’s characteristics will be included as
investment target

Invest selectively after carefully analyzing the location
environment, etc.

Participate in the Sekisui House’s
development department’s planning anddevelopment meeting as an observer

Sekisui House has extensive performancein development

Acquired 2 properties after public offering
in 16th FP

50

List of Properties Owned at End of Fiscal Period（1）Property No

Property Name

Location

Acquisition Price

Site Area（㎡）

Total Floor
Area
（㎡）

（Million yen）

Ratio
（%）

Price

Occupancy Ratio（%）
Acquisition Date

As of Sept.
30, 2016

As of Ｍａｒ.
31, 2017

Completion Date

Residence- 1

Esty Maison GINZA

Ginza, Chuo-ku, Tokyo

636.36

7,836.57

5,290

2.6

August 2, 2005

97.7

98.0

February 7, 2005

Residence- 3

Esty Maison AZABUNAGASAKA

Roppongi, Minato-ku, Tokyo

677.452,317.87

1,730

0.8

August 2, 2005

88.4

91.5

January 16, 2004

Residence- 4

Esty Maison EBISU II

Higashi, Shibuya-ku, Tokyo

561.582,452.69

1,960

0.9

August 2, 2005

91.8

97.5

June 13, 2003

Residence- 5

Esty Maison EBISU

Hiroo, Shibuya-ku, Tokyo

169.00871.90700

0.3August 2, 2005

96.1

85.0

October 20, 2004

Residence- 6

Esty Maison KANDA

Kandata-cho, Chiyoda-ku, Tokyo

307.692,028.19

1,360

0.7

August 2, 2005

96.0

95.6

February 20, 2004

Residence- 8

Esty Maison KITASHINJUKU

Kita-shinjuku, Shinjuku-ku, Tokyo

504.412,204.07

1,290

0.6

August 2, 2005

94.0

92.9

August 6, 2004

Residence-10

Esty Maison ASAKUSA KOMAGATA

Komagata, Taito-ku, Tokyo

663.54

3,406.10

1,870

0.9

August 2, 2005

100.0

100.0

July 28, 2004

Residence-11

Esty Maison MACHIDA

Hara-machida, Machida-shi, Tokyo

587.484,033.59

1,360

0.7

August 2, 2005

90.8

98.4

February 23, 2004

Residence-12

Esty Maison KAWASAKI

Ogawa-cho, Kawasaki-ku, Kawasaki-shi, Kanagawa

683.694,656.10

2,130

1.0

August 2, 2005

94.5

96.6

July 15, 2004

Residence-14

Esty Maison SHINKAWASAKI

Furuichiba, Saiwai-ku, Kawasaki-shi, Kanagawa

1,992.09

3,737.47

1,018

0.5

November 1, 2005

100.0

100.0

March 5, 1999

Residence-15

Esty Maison YOKOHAMA

Tsuruya-cho, Kanagawa-ku, Yokohama-shi, Kanagawa

611.41

3,076.45

2,090

1.0

February 28, 2007

100.0

100.0

January 23, 2007

Residence-16

Esty Maison KAMEIDO

Kameido, Koto-ku, Tokyo

438.432,899.67

1,650

0.8

January 31, 2006

98.9

98.9

November 30, 2005

Residence-17

Esty Maison MEGURO

Mita, Meguro-ku, Tokyo

578.01

1,283.92887

0.4

February 1, 2006

92.5

100.0

November 28, 2005

Residence-19

Esty Maison SUGAMO

Sugamo, Toshima-ku, Tokyo

965.702,785.83

1,510

0.7

March 9, 2007

100.0

97.3

February 22, 2007

Residence-20

Esty Maison KYOBASHI

Higashinoda-cho, Miyakojima-ku, Osaka-shi, Osaka

799.685,995.82

2,774

1.3

April 3, 2006

96.7

99.4

March 2, 2006

Residence-21

Esty Maison MEGUROHONCHO

Megurohoncho, Meguro-ku, Tokyo

865.22

1,975.84

1,220

0.6

March 30, 2006

93.0

93.4

February 22, 2006

Residence-22

Esty Maison HAKURAKU

Rokkakubashi, Kanagawa-ku, Yokohama-shi, Kanagawa

457.54

1,593.68844

0.4

April 3, 2006

96.5

92.7

February 2, 2006

Residence-23

Esty Maison MINAMIHORIE

Minamihorie, Nishi-ku, Osaka-shi, Osaka

475.06

1,994.14

1,055

0.5

March 9, 2007

92.1

97.0

February 19, 2007

Residence-24

Esty Maison GOTANDA (Note 4)

Nishi-gotanda, Shinagawa-ku, Tokyo

593.325,590.34

3,043

1.5

September 14, 2006

98.6

96.6

March 2, 2006

Residence-25

Esty Maison OISENDAIZAKA

Higashi-oi, Shinagawa-ku, Tokyo

558.393,440.73

2,440

1.2

September 14, 2006

100.0

97.9

August 10, 2006

Residence-26

Esty Maison SHINAGAWA SEASIDE

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,049.00

3,127.48

2,200

1.1

September 14, 2006

97.3

98.3

June 23, 2006

Residence-27

Esty Maison MINAMIAZABUMinamiazabu, Minato-ku, Tokyo

487.27

1,479.61

1,300

0.6

October 23, 2006

100.0

100.0

August 23, 2006

Residence-28

Esty Maison JOTO

Noe, Joto-ku, Osaka-shi, Osaka

740.492,232.26

1,075

0.5

November 15, 2006

95.5

100.0

August 31, 2006

Residence-29

Esty Maison TSUKAMOTO

Tsukamoto, Yodogawa-ku, Osaka-shi, Osaka

808.542,565.66

1,250

0.6

December 1, 2006

90.6

100.0

August 10, 2006

Residence-30

Esty Maison KAWASAKI II

Ogawa-cho, Kawasaki-ku, Kawasaki-shi, Kanagawa

601.383,193.14

1,900

0.9

March 28, 2007

96.1

100.0

February 27, 2007

Residence-31

Esty Maison AZABUJUBAN

Azabujuban, Minato-ku, Tokyo

380.26

2,097.45

2,700

1.3

May 11, 2007

91.4

98.8

February 22, 2007

Residence-33

Esty Maison ITABASHIHONCHO

Yamato-cho, Itabashi-ku, Tokyo

220.85

1,446.78

1,000

0.5

August 21, 2007

98.4

98.4

February 27, 2007

Residence-34

Esty Maison OIZUMIGAKUEN

Higashi-Oizumi, Nerima-ku, Tokyo

618.001,542.16871

0.4

August 21, 2007

96.6

96.2

February 22, 2007

Residence-35

Esty Maison TENJINHIGASHI I

Susaki-machi, Hakata-ku, Fukuoka-shi, Fukuoka

239.18

1,158.70445

0.2

September 28, 2007

97.8

94.4

January 31, 2007

51

List of Properties Owned at End of Fiscal Period（2）Property No

Property Name

Location

Acquisition Price

Site Area（㎡）

Total Floor
Area
（㎡）

（Million yen）

Ratio
（%）

Price

Occupancy Ratio（%）
Acquisition Date

As of Sept.
30, 2016

As of Ｍａｒ.
31, 2017

Completion Date

Residence-36

Esty Maison TENJINHIGASHI II

Susaki-machi, Hakata-ku, Fukuoka-shi, Fukuoka

514.892,108.69840

0.4

September 28, 2007

97.6

98.8

May 23, 2007

Residence-37

Esty Maison SHIJONISHINOTOIN

Myodenji-cho, Shijo-sagaru, Nishinotoin-dori,Shimogyo-ku, Kyoto-shi, Kyoto

400.593,374.74

1,420

0.7

April 25, 2008

92.9

100.0

April 8, 2008

Residence-39

Esty Maison HIGASHISHINAGAWA

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,028.92

3,338.12

2,610

1.3

July 1, 2008

94.8

93.6

May 23, 2008

Residence-40

Esty Maison HACHIOJIMINAMINO

Nishikatakura, Hachioji-shi, Tokyo

1,134.50

2,243.06

1,000

0.5

November 1, 2007

94.2

96.5

March 6, 2007

Residence-41

Esty Maison NISHINAKAJIMA

Higashinakajima, Higashiyodogawa-ku, Osaka-shi, Osaka

969.02

3,947.24

2,250

1.1

November 1, 2007

96.4

96.9

April 18, 2007

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

Itabashi, Itabashi-ku, Tokyo

731.71

4,322.19

2,700

1.3

November 1, 2007

93.5

99.2

April 22, 2007

Residence-43

Esty Maison MUSASHIKOYAMA (Note 4)

Ebara, Shinagawa-ku, Tokyo

512.62

1,616.87

1,012

0.5

November 30, 2007

95.6

98.2

November 5, 2007

Residence-44

Esty Maison SENDAGI (Note 4)

Sendagi, Bunkyo-ku, Tokyo

250.44

1,239.10757

0.4

February 6, 2008

100.0

93.1

January 9, 2008

Residence-45

Esty Maison YOTSUYASAKAMACHI (Note 4)

Yotsuyasakamachi, Shinjuku-ku, Tokyo

Residence-46

Esty Maison HAKATAHIGASHI

Yoshizuka, Hakata-ku, Fukuoka-shi, Fukuoka

Residence-47

Esty Maison KAMIGOFUKUResidence-48

Esty Maison SANGENJAYAResidence-50
Residence-51

905.083,675.01

2,300

1.1

April 25, 2008

97.0

100.0

March 29, 2008

4,590.91

9,465.09

2,250

1.1

March 26, 2008

97.1

97.6

November 21, 2007

Kamigofukumachi, Hakata-ku, Fukuoka-shi, Fukuoka

606.492,523.71900

0.4April 25, 2008

100.0

98.5

March 14, 2008

Sangenjaya, Setagaya-ku, Tokyo

153.83954.94871

0.4

December 15, 2008

100.0

94.4

January 22, 2008

Prime Maison MUSASHINONOMORI

Josuihoncho, Kodaira-shi, Tokyo

5,116.62

4,412.42

1,560

0.8

October 1, 2010

96.5

97.9

December 19, 2007

Prime Maison HIGASHISAKURA

Higashisakura, Higashi-ku, Nagoya-shi, Aichi

846.053,517.62

1,140

0.6

October 1, 2010

88.0

98.6

February 15, 2008

Residence-52

Prime Maison KAYABAKOEN

Kayaba, Chikusa-ku, Nagoya-shi, Aichi

1,129.02

2,301.42640

0.3

October 1, 2010

96.5

100.0

November 7, 2006

Residence-53

Esty Maison SANGENJAYA II

Shimouma, Setagaya-ku, Tokyo

473.85

1,006.89

714

0.3

March 25, 2011

100.0

100.0

January 28, 2008

Residence-54

Esty Maison ITABASHI C6Oyama-higashi-cho, Itabashi-ku, Tokyo

773.485,249.34

2,260

1.1

June 10, 2011

93.8

97.9

March 12, 2008

Residence-55

MAST HAKATA (Note 5)

Hakata Ekimae, Hakata-ku, Fukuoka-shi, Fukuoka

2,457.01

11,621.67

1,920

0.9

February 1, 2012

100.0

100.0

January 15, 2005

Residence-56

Esty Maison KINSHICHO

Kinshi, Sumida-ku, Tokyo

338.57

1,718.10

1,050

0.5

February 1, 2012

100.0

100.0

September 6, 2006

Residence-57

Esty Maison MUSASHIKOGANEI

Honcho, Koganei-shi, Tokyo

520.252,676.36

1,450

0.7

March 2, 2012

97.1

95.1

February 2, 2005

Residence-58

Prime Maison GOKISO

Ayuchitori, Showa-ku, Nagoya-shi, Aichi

1,429.67

4,691.72

1,640

0.8

April 2, 2012

98.4

98.4

October 28, 2008

Residence-59

Prime Maison YUHIGAOKA

Ueshio, Tennoji-ku, Osaka-shi, Osaka

547.152,336.49810

0.4April 2, 2012

88.7

100.0

February 16, 2007

Residence-60

Prime Maison KITATANABE

Kitatanabe, Higashisumiyoshi-ku, Osaka-shi, Osaka

640.92

2,112.46

540

0.3

April 2, 2012

88.5

100.0

June 13, 2006

Residence-61

Prime Maison MOMOCHIHAMA

Momochihama, Sawara-ku Fukuoka-shi, Fukuoka

4,069.42

8,945.61

1,810

0.9

April 2, 2012

100.0

100.0

February 29, 1996

Residence-62

Esty Maison AKIHABARA

Ueno, Taito-ku, Tokyo

458.322,821.47

1,560

0.8

June 29, 2012

96.2

96.2

February 24, 2006

Residence-63

Esty Maison SASAZUKA

Sasazuka, Shibuya-ku, Tokyo

909.33

4,263.10

2,830

1.4

September 5, 2012

97.6

96.6

September 7, 2004

Residence-64

Prime Maison GINZA EAST

Tsukiji, Chuo-ku, Tokyo

969.108,724.48

5,205

2.5

October 1, 2012

94.8

97.2

February 28, 2006

Residence-65

Prime Maison TAKAMI

Takami, Chikusa-ku, Nagoya-shi, Aichi

1,129.17

2,354.34905

0.4

October 1, 2012

96.1

89.9

August 27, 2008

52

List of Properties Owned at End of Fiscal Period（3）Property No

Property Name

Location

Site Area（㎡）

Total Floor
Area
（㎡）

Acquisition Price（Million yen）

Ratio
（%）

Price

Occupancy Ratio（%）
Acquisition Date

As of Sept.
30, 2016

As of Ｍａｒ.
31, 2017

Completion Date

Residence-66

Prime Maison YADAMINAMI

Yadaminami, Higashi-ku, Nagoya-shi, Aichi

1,148.53

2,430.23715

0.3

October 1, 2012

100.0

96.6

July 18, 2007

Residence-67

Prime Maison TERIHA

Kashiiteriha, Higashi-ku, Fukuoka-shi, Fukuoka

4,130.59

7,953.60

1,110

0.5

October 1, 2012

100.0

100.0

August 31, 2005

Residence-68

Esty Maison HIGASHISHIRAKABE

Yoshino, Higashi-ku, Nagoya-shi, Aichi

1,959.76

4,232.39

1,350

0.7

October 1, 2012

100.0

100.0

February 27, 2006

Residence-69

Esty Maison SENGOKU

Sengoku, Bunkyo-ku, Tokyo

1,002.14

2,068.21

1,075

0.5

February 8, 2013

97.0

91.7

August 6, 2009

Residence-70

Esty Maison DAIZAWA

Daizawa, Setagaya-ku, Tokyo

1,901.36

2,948.98

1,870

0.9

February 8, 2013

97.6

97.6

February 18, 2010

Residence-71

Esty Maison TOGOSHI

Togoshi, Shinagawa-ku, Tokyo

679.82

2,545.90

1,370

0.7

February 8, 2013

97.9

99.0

June 25, 2009

Residence-72

Esty Maison KAWARAMACHI

Kawaramachi, Chuo-ku, Osaka-shi, Osaka

655.894,580.48

1,640

0.8

March 1, 2013

96.3

94.7

October 17, 2006

Residence-73

Esty Maison NISHITENMA

Nishitenma, Kita-ku, Osaka-shi, Osaka

Residence-74

Esty Maison SHIROKANEDAI

Kamiosaki, Shinagawa-ku, Tokyo

Residence-75

Esty Maison HIGASHISHINJUKU (Note 6)

Residence-76

Esty Maison MOTOAZABUResidence-77
Residence-78

519.65

4,514.05

1,440

0.7

March 1, 2013

96.3

94.8

November 30, 2007

1,279.67

2,797.66

1,900

0.9

March 1, 2013

94.1

94.1

September 16, 2003

Shinjuku, Shinjuku-ku, Tokyo

679.192,227.87

1,363

0.7

May 1, 2013

87.9

98.2

April 17, 2009

Motoazabu, Minato-ku, Tokyo

755.991,699.44

1,170

0.6

May 1, 2013

84.2

100.0

November 9, 2009

Esty Maison TORITSUDAIGAKU

Tairamachi, Meguro-ku, Tokyo

766.84

1,399.75729

0.4

May 1, 2013

94.3

95.3

February 23, 2009

Esty Maison MUSASHIKOYAMA II

Koyama, Shinagawa-ku, Tokyo

609.81

1,436.58844

0.4

May 1, 2013

97.3

100.0

May 25, 2009

Residence-79

Esty Maison NAKANO

Chuo, Nakano-ku, Tokyo

687.472,608.04

1,540

0.7

May 1, 2013

95.3

97.9

June 24, 2009

Residence-80

Esty Maison SHINNAKANO

Honcho, Nakano-ku, Tokyo

747.64

1,508.07

847

0.4

May 1, 2013

100.0

95.9

October 22, 2009

Residence-81

Esty Maison NAKANOFUJIMICHO

Yayoicho, Nakano-ku, Tokyo

907.66

1,531.56

863

0.4

May 1, 2013

95.5

93.4

February 16, 2009

Residence-82

Esty Maison TETSUGAKUDO

Matsugaoka, Nakano-ku, Tokyo

686.93

1,858.00

954

0.5

May 1, 2013

85.7

97.6

October 21, 2009

Residence-83

Esty Maison KOENJI

Koenjiminami, Suginami-ku, Tokyo

1,100.15

1,977.24

958

0.5

May 1, 2013

95.8

95.1

March 10, 2009

Residence-84

Esty Maison OSHIAGE

Narihira, Sumida-ku, Tokyo

1,134.70

4,344.84

1,950

0.9

May 1, 2013

99.1

98.8

April 23, 2010

Residence-85

Esty Maison AKABANE

Akabane, Kita-ku, Tokyo

1,157.02

5,675.18

2,730

1.3

May 1, 2013

86.2

97.0

November 25, 2009

Residence-86

Esty Maison OJI

Oji, Kita-ku, Tokyo

518.872,939.76

1,380

0.7

May 1, 2013

97.7

98.9

July 6, 2010

Residence-87

Prime Maison WASEDA

Waseda Tsurumaki-cho, Shinjuku-ku, Tokyo

358.54

1,914.93

1,280

0.6

October 1, 2013

91.9

93.0

November 8, 2012

Residence-88

Prime Maison HATCHOBORI

Hatchobori, Chuo-ku, Tokyo

302.07

1,901.58

1,160

0.6

October 1, 2013

95.0

90.0

November 16, 2012

Residence-89

Prime Maison JINBOCHO

Kandajinbo-cho, Chiyoda-ku, Tokyo

389.482,341.30

1,640

0.8

October 1, 2013

100.0

93.6

March 1, 2013

Residence-90

Prime Maison GOTENYAMA EAST

Kitashinagawa, Shinagawa-ku, Tokyo

2,167.60

3,727.89

2,120

1.0

October 1, 2013

95.5

95.7

January 18, 2011

Residence-91

MAST LIFE AKIHABARA

Kanda Sakumagashi, Chiyoda-ku, Tokyo

151.48939.79480

0.2January 21, 2014

100.0

100.0

October 3, 2006

Residence-92

Esty Maison AOI

Aoi, Higashi-ku, Nagoya-shi, Aichi

906.67

5,107.47

2,160

1.0

January 31, 2014

95.4

96.3

October 3, 2007

Residence-93

Esty Maison YAKUIN

Hirao, Chuo-ku, Fukuoka-shi, Fukuoka

1,342.00

5,590.13

2,008

1.0

March 28, 2014

95.8

96.4

February 2, 2006

Residence-94

Esty Maison KINSHICHO II

Kotobashi, Sumida-ku, Tokyo

1,679.75

11,160.19

6,720

3.2

May 1, 2014

98.2

95.8

January 17, 2008

53

List of Properties Owned at End of Fiscal Period（4）Property No

Property Name

Location

Acquisition Price

Site Area（㎡）

Total Floor
Area
（㎡）

（Million yen）

Ratio
（%）

Price

Occupancy Ratio（%）
Acquisition Date

As of Sept.
30, 2016

As of Ｍａｒ.
31, 2017

Completion Date

Residence-95

Esty Maison OJIMA

Ojima, Koto-ku, Tokyo

3,003.87

11,940.22

7,120

3.4

May 1, 2014

95.5

98.9

September 13, 2007

Residence-96

Prime Maison FUJIMIDAI

Fujimidai, Chikusa-ku, Nagoya-shi, Aichi

4,882.14

6,173.03

1,755

0.8

May 1, 2014

91.1

91.0

April 24, 2007

Residence-97

Esty Maison TSURUMAI

Chiyoda, Naka-ku, Nagoya-shi, Aichi

3,470.05

21,577.20

3,760

1.8

May 1, 2014

100.0

100.0

November 27, 1999

Residence-98

Prime Maison MORISHITA

Morishita, Koto-ku, Tokyo

461.602,668.30

1,720

0.8

November 4, 2014

97.7

100.0

May 14, 2013

Residence-99

Prime Maison SHINAGAWA

Kita-Shinagawa, Shinagawa-ku, Tokyo

972.94

2,693.31

1,680

0.8

November 4, 2014

98.8

100.0

February 18, 2014

Residence-100 Prime Maison ODORI KOEN

Odori-nishi, Chuo-ku, Sapporo-shi, Hokkaido

1,007.42

11,090.88

2,660

1.3

November 4, 2014

95.0

92.3

December 15, 2008

Residence-101 Prime Maison MINAMI 2-JO

Minami 2-jo Nishi, Chuo-ku, Sapporo-shi, Hokkaido

1,085.66

8,477.68

1,470

0.7

November 4, 2014

100.0

99.1

November 30, 2009

Residence-102 Prime Maison KAMOKAMOGAWA

Minami 7-jo Nishi, Chuo-ku, Sapporo-shi, Hokkaido

754.61

6,160.49970

0.5

November 4, 2014

99.2

98.0

October 30, 2009

Residence-103 Prime Maison CENTRAL PARK (Note 7)

Kashii Teriha, Higashi-ku, Fukuoka-shi, Fukuoka

5,000.02

10,249.72

2,230

1.1

November 4, 2014

94.4

100.0

February 3, 2011

Residence-104 MAST LIFE YAHIRO

Yahiro, Sumida-ku, Tokyo

1,296.64

4,012.49

1,670

0.8

November 4, 2014

100.0

100.0

January 14, 2011

Residence-105 Prime Maison EBISU

Ebisu, Shibuya-ku, Tokyo

587.16

3,798.12

3,585

1.7

January 15, 2015

95.4

100.0

June 5, 2014

Residence-106 Esty Maison SHIBAURA

Shibaura, Minato-ku, Tokyo

1,217.25

4,855.53

2,730

1.3

March 31, 2015

92.8

95.8

August 26, 1996

Residence-107 Granmast KANAZAWA NISHIIZUMI

Nishiizumi, Kanazawa-shi, Ishikawa

1,633.40

5,181.40

1,005

0.5

April 2, 2015

100.0

100.0

September 14, 2007

Residence-108 Granmast UNOMORIUnomori, Yokkaichi-shi, Mie

790.452,444.91745

0.4

April 2, 2015

100.0

100.0

April 13, 2009

Residence-109 Esty Maison TSUTSUJIGAOKA

Nishitsutsujigaoka, Chofu-shi, Tokyo

1,503.25

2,456.48871

0.4

May 14, 2015

100.0

92.2

March 9, 2002

Residence-110 Esty Maison KOHOKU TSUNASHIMA

Shin-yoshida Higashi, Kohoku-ku, Yokohama-shi,
Kanagawa

5,632.35

7,408.15

2,680

1.3

July 10, 2015

100.0

100.0

(Note 8)Residence-111 MAST LIFE HINO

Shinmachi, Hino-shi, Tokyo

600.203,341.96

1,290

0.6

October 1, 2015

100.0

98.1

January 13, 2010

Residence-112 Prime Maison YOKOHAMA NIHON-ODORI

Honcho, Naka-ku, Yokohama-shi, Kanagawa, andanother

887.06

8,196.14

4,270

2.1

January 29, 2016

96.0

98.1

June 27, 2014

Residence-113 KOBE Women’s Student Housing

Koyocho Naka, Higashinada-ku, Kobe-shi, Hyogo

4,494.55

23,773.26

5,700

2.8

March 1, 2016

100.0

100.0

February 28, 2002

Residence-114 Prime Maison SHIBUYA

Shibuya, Shibuya-ku, Tokyo

431.802,238.04

2,190

1.1

April 1, 2016

96.6

96.6

July 4, 2014

Residence-115 Prime Maison HATSUDAI

Hatsudai, Shibuya-ku, Tokyo

644.333,761.80

2,700

1.3

April 1, 2016

100.0

94.7

December 11, 2014

Residence-116 Esty Maison UEMACHIDAI

Uehonmachi-nishi, Chuo-ku, Osaka-shi, Osaka

407.962,609.61950

0.5April 1, 2016

94.0

97.5

August 17, 2005

Residence-117 Esty Maison KOBE-SANNOMIYA

Onoe-dori, Chuo-ku, Kobe-shi, Hyogo

446.712,304.05

970

0.5

April 1, 2016

93.2

98.3

March 22, 2007

Residence-118

Prime Maison SHIROKANE-TAKANAWA

Mita, Minato-ku, Tokyo

832.92

5,503.55

4,500

2.2

November 1, 2016

98.1

June 15, 2015

Residence-119

Prime Maison ICHIGAYAYAMABUSHICHO

Ichigayayamabushicho, Shinjuku-ku, Tokyo

1,113.91

5,771.76

4,000

1.9

November 1, 2016

93.9

October 13, 2015

Esty Maison MORISHITA

Kikukawa, Sumida-ku, Tokyo

263.84922.68628

0.3

March 17, 2017

95.1

February 9, 2017

125,627.31

456,158.33

203,122

98.2

Residence-120

Residence Subtotal

96.7

97.7

54

List of Properties Owned at End of Fiscal Period（5）Acquisition Price

Site Area（㎡）

Total Floor
Area
（㎡）

（Million yen）

Ratio
（%）

73,937.28

11,229.79

3,820

1.8

Other real estate in trust （retail property） Subtotal

73,937.28

11,229.79

3,820

Portfolio Total

199,564.59

467,388.12

206,943

Property No

Retail-1

Property Name

HAMAMATSU Plaza (Note 9)

Location
Kaminishi-cho, Higashi-ku, Hamamatsu-shi, Shizuoka, andothersPrice

Occupancy Ratio（%）
Acquisition Date

As of Sept.
30, 2016

As of Ｍａｒ.
31, 2017

100.0

100.0

1.8

100.0

100.0

100.0

96.8

97.8

July 28, 2005

Completion Date

(Note 9)Note 1: Based on information as of March 31, 2017. The occupancy ratios in the residence subtotal, other real estate in trust (retail property) subtotal and portfolio total are occupancy ratios for properties held at the endof each FP, and are rounded to the first decimal place.
Note 2: Concerning “Acquisition Price”, amounts of less than one million yen are rounded down, and ratios indicate the portion of the total acquisition price described in “Portfolio Total” for properties owned and arerounded to the nearest first decimal place.
Note 3: The listed “Site Area”, “Total Floor Area” figures and “Completion Date” are based on indications given in the register.
Note 4: The ratio of site rights (co-ownership rights) for Esty Maison GOTANDA, Esty Maison MUSASHIKOYAMA, Esty Maison SENDAGI and Esty Maison YOTSUYASAKAMACHI are 387,036 /
426,933, 117,678 / 127,609 , 89,730 / 103,842 and 245,317 / 329,739, respectively. However, “Site Area” indicates the total land area of the real estate in trust and “Total Floor Area” indicates the floor area of theentire building. The exclusive portions of the total floor area that the Investment Corporation has acquired are 3,637.18㎡, 1,148.58㎡, 867.27㎡ and 2,253.07㎡, respectively.
Note 5: MAST HAKATA is a leasehold property with a general fixed-term land leasehold of 50 years lease period which began on December 1,2002, with the Urban Renaissance Agency as the land owner. As such, its“Site Area” is that which is indicated in the land leasehold agreement.
Note 6: The Investment Corporation acquired trust beneficiary interest in real estate for Esty Maison HIGASHISHINJUKU at the acquisition price of 1,370 million yen on May 1, 2013 and started operations, but a part ofthe land (measured area: 6.62㎡) was disposed on July 29, 2016. The “Site Area” and “Acquisition Price” do not include the disposed portion.
Note 7: Part of the land of Prime Maison CENTRAL PARK (Lot: 23-32) is leased land and the building (store) on the leased land is owned by the leaseholder, and thus the floor area of the building (store) is not includedin the “Total Floor Area” above and “Completion Date” of the building (store) is not indicated.
Note 8: Esty Maison KOHOKU TSUNASHIMA is comprised of three buildings, the “East”, the “West” and the “Annex”. The “Completion Date” are March 11, 2002, October 23, 2002 and September 19, 2002, respectively.
Note 9: Hamamatsu Plaza is a commercial complex that comprises a total of six buildings, four in the Hamamatsu Plaza East area (the Akachan Honpo Building, the Xebio Building, the Hamapla & Frespo Building, and amanagement building) and two in the Hamamatsu Plaza West area (the Hamamatsu West Building and the Hamamatsu Plaza Sports Building (Zexis)) as of the date of this document. Note that the former ItoYokado Building, which was located in the Hamamatsu Plaza East area, has been completely demolished after the closing of the store operated by Ito-Yokado Co., Ltd. As of the date of this document, Costco
Wholesale Japan, Ltd. is proceeding with plans to open a store on the site of the former Ito-Yokado Building. (This plan is referred to as the “Costco Wholesale Japan Opening Plan” hereafter. The buildings
located in the Hamamatsu Plaza East area are collectively referred to as “Hamamatsu Plaza East” hereafter). The Investment Corporation acquired trust beneficiary interests in real estate other than the Hamapla& Frespo Building and the Hamamatsu Plaza Sports Building (Zexis) on July 28, 2005, and began operations, but disposed portions to Sekisui House, Ltd. on March 30, 2012, and September 30, 2013, and thus
holds only 49% quasi-co-ownership of trust beneficiary interests in real estate in the part of Hamamatsu Plaza East, which excludes the site of the Costco Wholesale Japan Opening Plan (collectively referred to as“Hamamatsu Plaza East Xebio Building and Other Portions” hereafter) as of the date of this document. However, for the “Site Area” and “Total Floor Area” above, those for the entire Hamamatsu Plaza East Xebio
Building and Other Portions are indicated. Note that the Hamapla & Frespo Building is not included in the Total Floor Area because it is on the leased land. In addition, the “Acquisition Price” is cash amounts that
correspond to the 49% quasi-co-ownership of trust beneficiary interests in real estate of Hamamatsu Plaza East Xebio Building and Other Portions, and thus do not include the disposed portion. With regard to the“Completion Date,” the management building was completed on November 7, 2000, and that the Akachan Honpo and Xebio Buildings were completed on November 9, 2000, but no Completion Date is shown for
the Hamapla & Frespo Building because, as explained earlier, the buildings on the land are owned by the tenants.
Additionally, Costco Wholesale Japan, Ltd. intends to build a gas station for Costco members in conjunction with the Costco Wholesale Japan Opening Plan, and Costco and the trustee of the trust beneficiaryinterests in real estate of Hamamatsu Plaza East Xebio Building and Other Portions concluded a fixed-term land lease agreement for business purposes of a portion of Hamamatsu Plaza East Xebio Building andOther Portions on April 4, 2017.

55

List of Fiscal Period-End Estimated Values（1）Estimated value at end of period(Million yen)
Property No.

Property Name

As of Ｍａｒ.
31, 2017

Direct capitalization rate (%)
As of Ｍａｒ.
31, 2017

Period on
periodDiscount rate (%)
As of Ｍａｒ.
31, 2017

Period on
periodTerminal capitalization rate (%)
As of Ｍａｒ.
31, 2017

Period on
periodPeriod on
periodAcquisition
price（Million yen）

Balance sheet
amount(Million yen)

Unrealized
gain / loss
(Million yen)

Residence- 1

Esty Maison GINZA

6,240

110

4.2

-0.1

4.4

-0.1

4.4

-0.1

5,290

4,714

1,525

Residence- 3

Esty Maison AZABUNAGASAKA

1,730

40

4.3

-0.1

4.4

-0.1

4.5

-0.1

1,730

1,604

125

Residence- 4

Esty Maison EBISU II

1,970

50

4.3

-0.1

4.4

-0.1

4.5

-0.1

1,960

1,875

94

Residence- 5

Esty Maison EBISU

835

20

4.2

-0.1

4.3

-0.1

4.4

-0.1

700

638

196

Residence- 6

Esty Maison KANDA

1,540

40

4.3

-0.1

4.4

-0.1

4.5

-0.1

1,360

1,266

273

Residence- 8

Esty Maison KITASHINJUKU

1,520

20

4.5

-0.1

4.5

-0.1

4.7

-0.1

1,290

1,212

307

Residence-10

Esty Maison ASAKUSA KOMAGATA

2,100

60

4.5

-0.1

4.5

-0.1

4.7

-0.1

1,870

1,699

400

Residence-11

Esty Maison MACHIDA

1,530

20

4.9

-0.1

4.8

-0.1

5.1

-0.1

1,360

1,146

383

Residence-12

Esty Maison KAWASAKI

2,360

10

4.6

-0.1

4.6

-0.1

4.8

-0.1

2,130

1,815

544

Residence-14

Esty Maison SHINKAWASAKI

1,200

-10

5.2

-

4.0

-

5.4

-

1,018

925

274

Residence-15

Esty Maison YOKOHAMA

2,090

50

4.6

-0.1

4.4

-0.1

4.8

-0.1

2,090

1,884

205

Residence-16

Esty Maison KAMEIDO

1,550

30

4.6

-0.1

4.4

-0.1

4.8

-0.1

1,650

1,406

143

Residence-17

Esty Maison MEGURO

1,040

10

4.3

-0.1

4.1

-0.1

4.5

-0.1

887

788

251

Residence-19

Esty Maison SUGAMO

1,550

-30

4.4

0.1

4.2

0.1

4.6

0.1

1,510

1,447

102

Residence-20

Esty Maison KYOBASHI

2,910

30

4.8

-0.1

4.7

-0.1

4.9

-0.1

2,774

2,275

634

Residence-21

Esty Maison MEGUROHONCHO

1,120

20

4.3

-0.1

4.1

-0.1

4.5

-0.1

1,220

1,112

7

Residence-22

Esty Maison HAKURAKU

917

19

4.7

-0.1

4.5

-0.1

4.9

-0.1

844

709

207

Residence-23

Esty Maison MINAMIHORIE

1,010

-

4.7

-

4.5

-

4.9

-

1,055

940

69

Residence-24

Esty Maison GOTANDA

3,030

70

4.5

-0.1

4.2

-0.1

4.7

-0.1

3,043

2,737

292

Residence-25

Esty Maison OISENDAIZAKA

2,660

70

4.3

-0.1

4.1

-0.1

4.5

-0.1

2,440

2,216

443

Residence-26

Esty Maison SHINAGAWA SEASIDE

1,980

-

4.4

-

4.2

-

4.6

-

2,200

1,966

13

Residence-27

Esty Maison MINAMIAZABU

1,190

-

4.1

-

3.9

-

4.3

-

1,300

1,191

-1

Residence-28

Esty Maison JOTO

949

-

5.1

-

4.9

-

5.3

-

1,075

972

-23

Residence-29

Esty Maison TSUKAMOTO

1,060

10

5.1

-0.1

4.9

-0.1

5.3

-0.1

1,250

1,112

-52

Residence-30

Esty Maison KAWASAKI II

1,850

-70

4.6

0.1

4.4

0.1

4.8

0.1

1,900

1,715

134

Residence-31

Esty Maison AZABUJUBAN

2,580

-50

4.1

0.1

3.9

0.1

4.3

0.1

2,700

2,597

-17

Residence-33

Esty Maison ITABASHIHONCHO

907

-20

4.5

0.1

4.3

0.1

4.7

0.1

1,000

909

-2

Residence-34

Esty Maison OIZUMIGAKUEN

764

-14

4.6

0.1

4.4

0.1

4.8

0.1

871

789

-25

Residence-35

Esty Maison TENJINHIGASHI I

359

7

5.2

-0.1

5.0

-0.1

5.4

-0.1

445

376

-17

56

List of Fiscal Period-End Estimated Values（2）Estimated value at end of period(Million yen)

Direct capitalization rate (%)

Discount rate (%)

Terminal capitalization rate (%)

Acquisition
price（Million yen）

Balance sheet
amount(Million yen)

Unrealized
gain / loss
(Million yen)

Property No.

Property Name

Residence-36

Esty Maison TENJINHIGASHI II

728

14

5.2

-0.1

5.0

-0.1

5.4

-0.1

840

708

19

Residence-37

Esty Maison SHIJONISHINOTOIN

1,150

-40

5.0

-0.1

4.8

-0.1

5.2

-0.1

1,420

1,275

-125

Residence-39

Esty Maison HIGASHISHINAGAWA

2,350

40

4.4

-0.1

4.2

-0.1

4.6

-0.1

2,610

2,430

-80

Residence-40

Esty Maison HACHIOJIMINAMINO

875

-

5.1

-

5.0

-

5.2

-

1,000

879

-4

Residence-41

Esty Maison NISHINAKAJIMA

1,900

-

4.9

-0.1

4.7

-0.1

5.1

-0.1

2,250

1,902

-2

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

2,480

-10

4.4

-

4.2

-

4.6

-

2,700

2,469

10

Residence-43

Esty Maison MUSASHIKOYAMA

1,020

-

4.4

-

4.2

-

4.6

-

1,012

940

79

Residence-44

Esty Maison SENDAGI

682

-1

4.4

-

4.2

-

4.6

-

757

707

-25

Residence-45

Esty Maison YOTSUYASAKAMACHI

2,050

-

4.3

-

4.1

-

4.5

-

2,300

2,176

-126

Residence-46

Esty Maison HAKATAHIGASHI

2,390

-10

5.1

-

5.1

-

5.2

-

2,250

2,007

382

Residence-47

Esty Maison KAMIGOFUKU

819

16

4.9

-0.1

4.9

-0.1

5.0

-0.1

900

802

16

Residence-48

Esty Maison SANGENJAYA

805

-55

4.3

-0.1

4.4

-0.1

4.5

-0.1

871

832

-27

Residence-50

Prime Maison MUSASHINONOMORI

1,820

40

4.9

-0.1

4.8

-0.1

5.1

-0.1

1,560

1,481

338

Residence-51

Prime Maison HIGASHISAKURA

1,470

-

4.9

-0.1

4.8

-0.1

5.1

-0.1

1,140

1,033

436

Residence-52

Prime Maison KAYABAKOEN

765

-32

5.2

-

5.1

-

5.4

-

640

595

169

Residence-53

Esty Maison SANGENJAYA II

777

-50

4.4

-0.1

4.5

-0.1

4.6

-0.1

714

665

111

Residence-54

Esty Maison ITABASHI C6

2,590

50

4.4

-0.1

4.2

-0.1

4.6

-0.1

2,260

2,097

492

Residence-55

MAST HAKATA

2,480

40

5.2

-

4.6

-0.1

5.4

-

1,920

1,775

704

Residence-56

Esty Maison KINSHICHO

1,280

30

4.3

-0.1

4.1

-0.1

4.5

-0.1

1,050

1,024

255

Residence-57

Esty Maison MUSASHIKOGANEI

1,710

10

4.6

-0.1

4.7

-0.1

4.8

-0.1

1,450

1,520

189

Residence-58

Prime Maison GOKISO

1,910

30

4.9

-0.1

4.9

-0.1

5.1

-0.1

1,640

1,524

385

Residence-59

Prime Maison YUHIGAOKA

920

3

4.8

-

4.6

-

5.0

-

810

753

166

Residence-60

Prime Maison KITATANABE

604

10

5.1

-0.1

-0.1

5.3

-0.1

540

500

103

Residence-61

Prime Maison MOMOCHIHAMA

2,030

40

5.2

-0.1

4.9
4.9

-0.1

5.4

-0.1

1,810

1,898

131

Residence-62

Esty Maison AKIHABARA

1,980

50

4.3

-0.1

4.1

-0.1

4.5

-0.1

1,560

1,489

490

Residence-63

Esty Maison SASAZUKA

3,280

80

4.3

-0.1

4.1

-0.1

4.5

-0.1

2,830

2,769

510

Residence-64

Prime Maison GINZA EAST

6,150

160

4.1

-0.1

3.9

-0.1

4.3

-0.1

5,205

4,964

1,185

Residence-65

Prime Maison TAKAMI

1,030

20

4.7

-0.1

4.8

-0.1

4.9

-0.1

905

856

173

Residence-66

Prime Maison YADAMINAMI

813

14

5.1

-0.1

5.0

-0.1

5.3

-0.1

715

673

139

As of Ｍａｒ.
31, 2017

As of Ｍａｒ.
31, 2017

Period on
periodAs of Ｍａｒ.
31, 2017

Period on
period(Note 4)As of Ｍａｒ.
31, 2017

Period on
periodPeriod on
period57

List of Fiscal Period-End Estimated Values（3）Estimated value at end of period(Million yen)
Property No.

Property Name

As of Ｍａｒ.
31, 2017

Period on
periodDirect capitalization rate (%)
As of Ｍａｒ.
31, 2017

Period on
periodDiscount rate (%)
As of Ｍａｒ.
31, 2017

Residence-67

Prime Maison TERIHA

1,310

30

5.3

-0.1

Residence-68

Esty Maison HIGASHISHIRAKABE

5.1
4.9

1,560

30

5.1

-0.1

Residence-69

Esty Maison SENGOKU

1,330

30

4.1

-0.1

3.9

Residence-70

Esty Maison DAIZAWA

2,220

50

4.1

-0.1

Residence-71

Esty Maison TOGOSHI

1,690

30

4.3

-0.1

Residence-72

Esty Maison KAWARAMACHI

1,890

30

4.8

Residence-73

Esty Maison NISHITENMA

1,660

30

4.7

Residence-74

Esty Maison SHIROKANEDAI

2,330

80

Residence-75

Esty Maison HIGASHISHINJUKU (Note 5)

1,600

50

Residence-76

Esty Maison MOTOAZABU

1,490

Residence-77

Esty Maison TORITSUDAIGAKU

833

Residence-78

Esty Maison MUSASHIKOYAMA II

Residence-79

Esty Maison NAKANO

Residence-80
Residence-81
Residence-82

Terminal capitalization rate (%)

Period on
periodAs of Ｍａｒ.
31, 2017

Period on
periodAcquisition
price（Million yen）

Balance sheet
amount(Million yen)

Unrealized
gain / loss
(Million yen)

-0.1

5.5

-0.1

1,110

1,041

268

-0.1

5.3

-0.1

1,350

1,260

299

-0.1

4.3

-0.1

1,075

1,079

250

3.9

-0.1

4.3

-0.1

1,870

1,879

340

4.4

-0.1

4.5

-0.1

1,370

1,361

328

-0.1

4.9

-0.1

5.0

-0.1

1,640

1,562

327

-0.1

4.8

-0.1

4.9

-0.1

1,440

1,373

286

4.2

-0.1

4.0

-0.1

4.4

-0.1

1,900

1,951

378

4.3

-0.1

4.4

-0.1

4.5

-0.1

1,363

1,337

262

30

4.1

-0.1

4.2

-0.1

4.3

-0.1

1,170

1,169

320

17

4.2

-0.1

4.3

-0.1

4.4

-0.1

729

730

102

1,020

21

4.2

-0.1

4.0

-0.1

4.4

-0.1

844

836

183

1,840

40

4.2

-0.1

4.0

-0.1

4.4

-0.1

1,540

1,524

315

Esty Maison SHINNAKANO

993

21

4.3

-0.1

4.1

-0.1

4.5

-0.1

847

839

153

Esty Maison NAKANOFUJIMICHO

948

2

4.4

-0.1

4.5

-0.1

4.6

-0.1

863

858

89

Esty Maison TETSUGAKUDO

1,140

30

4.3

-0.1

4.1

-0.1

4.5

-0.1

954

938

201

Residence-83

Esty Maison KOENJI

1,110

10

4.3

-0.1

4.4

-0.1

4.5

-0.1

958

956

153

Residence-84

Esty Maison OSHIAGE

2,400

60

4.5

-0.1

4.5

-0.1

4.7

-0.1

1,950

1,921

478

Residence-85

Esty Maison AKABANE

3,220

80

4.4

-0.1

4.2

-0.1

4.6

-0.1

2,730

2,666

553

Residence-86

Esty Maison OJI

1,630

40

4.4

-0.1

4.2

-0.1

4.6

-0.1

1,380

1,349

280

Residence-87

Prime Maison WASEDA

1,560

40

4.2

-0.1

4.0

-0.1

4.4

-0.1

1,280

1,243

316

Residence-88

Prime Maison HATCHOBORI

1,430

40

4.2

-0.1

4.0

-0.1

4.4

-0.1

1,160

1,123

306

Residence-89

Prime Maison JINBOCHO

1,920

40

4.2

-0.1

4.0

-0.1

4.4

-0.1

1,640

1,597

322

Residence-90

Prime Maison GOTENYAMA EAST

2,790

80

4.0

-0.1

3.8

-0.1

4.2

-0.1

2,120

2,098

691

Residence-91

MAST LIFE AKIHABARA

543

19

4.4

-0.1

4.2

-0.1

4.6

-0.1

480

474

68

Residence-92

Esty Maison AOI

2,450

40

4.9

-0.1

4.9

-0.1

5.1

-0.1

2,160

2,090

359

Residence-93

Esty Maison YAKUIN

2,330

50

4.8

-0.1

4.9

-0.1

5.0

-0.1

2,008

2,034

295

Residence-94

Esty Maison KINSHICHO II

8,100

180

4.3

-0.1

4.1

-0.1

4.5

-0.1

6,720

6,667

1,432

Residence-95

Esty Maison OJIMA

8,520

10

4.3

-0.1

4.1

-0.1

4.5

-0.1

7,120

7,069

1,450

(Note 4)58

List of Fiscal Period-End Estimated Values（4）Estimated value at end of period(Million yen)
Property No.

Property Name

As of Ｍａｒ.
31, 2017

Direct capitalization rate (%)
As of Ｍａｒ.
31, 2017

Period on
periodDiscount rate (%)
As of Ｍａｒ.
31, 2017

Period on
periodTerminal capitalization rate (%)
As of Ｍａｒ.
31, 2017

Period on
periodPeriod on
periodAcquisition
price（Million yen）

Balance sheet
amount(Million yen)

Unrealized
gain / loss
(Million yen)

Residence-96

Prime Maison FUJIMIDAI

2,020

-

5.1

-

4.9

-

5.3

-

1,755

1,752

267

Residence-97

Esty Maison TSURUMAI

4,420

80

5.1

-0.1

4.9

-0.1

5.3

-0.1

3,760

3,806

613

Residence-98

Prime Maison MORISHITA

1,900

30

4.5

-0.1

4.5

-0.1

4.7

-0.1

1,720

1,740

159

Residence-99

Prime Maison SHINAGAWA

1,940

50

4.3

-0.1

4.1

-0.1

4.5

-0.1

1,680

1,701

238

Residence-100 Prime Maison ODORI KOEN

3,090

70

5.0

-0.1

4.8

-0.1

5.2

-0.1

2,660

2,694

395

Residence-101 Prime Maison MINAMI 2-JO

1,910

40

5.1

-0.1

4.9

-0.1

5.3

-0.1

1,470

1,492

417

Residence-102 Prime Maison KAMOKAMOGAWA

1,220

20

5.1

-0.1

4.9

-0.1

5.3

-0.1

970

988

231

Residence-103 Prime Maison CENTRAL PARK (Note 6)

2,298

1

5.2

-

5.0

-

5.3

-

2,230

2,283

14

Residence-104 MAST LIFE YAHIRO

1,880

50

4.6

-0.1

4.4

-0.1

4.8

-0.1

1,670

1,697

182

Residence-105 Prime Maison EBISU

4,250

80

4.1

-0.1

3.9

-0.1

4.3

-0.1

3,585

3,634

615

Residence-106 Esty Maison SHIBAURA

2,910

70

4.3

-0.1

4.1

-0.1

4.5

-0.1

2,730

2,873

36

Residence-107 Granmast KANAZAWA NISHIIZUMI

1,100

30

5.3

-0.1

5.1

-0.1

5.5

-0.1

1,005

1,038

61

817

16

5.3

-0.1

5.1

-0.1

5.5

-0.1

745

765

51

Residence-108 Granmast UNOMORI

913

12

4.6

-0.1

4.7

-0.1

4.8

-0.1

871

911

1

Residence-110 Esty Maison KOHOKU TSUNASHIMA

2,750

50

4.7

-0.1

4.5

-0.1

4.9

-0.1

2,680

2,847

-97

Residence-111 MAST LIFE HINO

1,370

-

4.9

-

4.7

-

5.0

-

1,290

1,334

35

Residence-112 Prime Maison YOKOHAMA NIHON-ODORI

4,690

-

4.5

-

4.3

-

4.7

-

4,270

4,421

268

Residence-113 KOBE Women’s Student Housing

5,780

20

5.3

-

5.1

-

5.5

-

5,700

6,087

-307

Residence-114 Prime Maison SHIBUYA

2,310

10

4.2

-

4.0

-

4.4

-

2,190

2,238

71

Residence-115 Prime Maison HATSUDAI

2,860

-

4.3

-

4.1

-

4.5

-

2,700

2,776

83

Residence-116 Esty Maison UEMACHIDAI

1,020

26

4.6

-0.1

4.3

-0.1

4.8

-0.1

950

983

36

976

1

4.7

-0.1

4.5

-0.1

4.9

-0.1

970

1,005

-29

Residence-109 Esty Maison TSUTSUJIGAOKA

Residence-117 Esty Maison KOBE-SANNOMIYA
Residence-118

Prime Maison SHIROKANE-TAKANAWA

4,690

4.2

4.0

4.4

4,500

4,610

79

Residence-119

Prime Maison ICHIGAYAYAMABUSHICHO

4,200

4.2

4.0

4.4

4,000

4,102

97

Residence-120

Esty Maison MORISHITA

4.4

4.2

4.6

628

658

-15

4.6

4.4

4.8

203,122

196,296

26,916

Residence Subtotal / Average

643
223,2132,807(Note 7)59

List of Fiscal Period-End Estimated Values（5）Estimated value at end of period(Million yen)
Property No.

Retail-1

Property Name

HAMAMATSU Plaza (Note 8)

Other real estate in trust (retail property)
subtotal / average

Portfolio total / average

As of Ｍａｒ.
31, 2017

2,802
2,802
226,015

Period on
periodDirect capitalization rate (%)
As of Ｍａｒ.
31, 2017

Period on
periodAs of Ｍａｒ.
31, 2017

5.9

Terminal capitalization rate (%)

Period on
periodBalance sheet
amount(Million yen)

Unrealized
gain / loss
(Million yen)

3,820

3,714

-911

6.2

5.9

6.3

3,820

3,714

-911

4.6

4.5

4.8

206,943

200,01026,005

3,012

-0.1

Acquisition
price（Million yen）

205

(Note 7)

6.3

Period on
period6.2(Note 9)-0.1

As of Ｍａｒ.
31, 2017

205(Note 7)-0.1

Discount rate (%)

Note 1: Amounts of less than one million yen are rounded down.
Note 2: “Estimated value at end of period”, “Direct capitalization rate”, “Discount rate” and “Terminal capitalization rate” are the amount based on real estate appraisal or on real estate price survey while “Balance sheet
amount” is the amount recorded on the balance sheet as of March 31, 2017.
Note 3: “Direct capitalization rate”, “Discount rate” and “Terminal capitalization rate” in the residence subtotal, other real estate in trust (retail property) subtotal and portfolio total are the simple averages of the figures forthe owned properties at the end of the fiscal period ended March 31, 2017 (the 23rd fiscal period), and are rounded to the nearest first decimal place. Also, when a part of an owned asset is a leased land, suchpart is excluded from the basis of the calculation of the simple average.
Note 4: Master lease agreements with rent guarantees are concluded with Sekiwa Real Estate Kyushu, Ltd. with regard to Prime Maison MOMOCHIHAMA, and with Sekiwa Real Estate Chubu, Ltd. with regard to Esty
Maison HIGASHISHIRAKABE. In calculating the period-end estimated value as of March 31, 2017, the properties’ discount rate until the expiry of the contract are 4.9% (Period on period: -0.1%) for bothcontracts and the discount rates after expiry of the contract are 5.1% (Period on period: -0.1%) for both contracts. For the sake of convenience, the above chart shows the discount rates until expiry of thecontracts.
Note 5: The Investment Corporation acquired trust beneficiary interest in real estate for Esty Maison HIGASHISHINJUKU at the acquisition price of 1,370 million yen on May 1, 2013 and started operations, but a part ofthe land (measured area: 6.62㎡) was disposed on July 29, 2016. The “Estimated value at end of period”, ”Acquisition price” and “Balance sheet amount” as of March 31, 2017 do not include the disposed portion.
Note 6: Part of the land of Prime Maison CENTRAL PARK (Lot: 23-32) is leased land and the value of earnings for the leased land is calculated by the DCF method, and thus no “Direct capitalization rate” or “Terminal
capitalization rate” for the leased land are established. Therefore, “Direct capitalization rate” and “Terminal capitalization rate” in the above table only indicate those for the residential portion. “Discount rate” of theleased land portion are calculated to be 4.7% (Period on period: -0.1%), at the fiscal period ended March 31, 2017 by the DCF method.
Note 7: The residence subtotal, other real estate in trust (retail property) subtotal and portfolio total of the “Period on period” column indicate the aggregate amount of changes of properties owned as of the end of the
22nd FP (ended September 30, 2016) (excluding three properties acquired and one property disposed during the 23rd FP (ended March 31, 2017)).
Note 8: Hamamatsu Plaza is a commercial complex that comprises a total of six buildings, four in the Hamamatsu Plaza East area (the Akachan Honpo Building, the Xebio Building, the Hamapla & Frespo Building, and amanagement building) and two in the Hamamatsu Plaza West area (the Hamamatsu West Building and the Hamamatsu Plaza Sports Building (Zexis)) as of the date of the this document. Note that the former ItoYokado Building, which was located in the Hamamatsu Plaza East area, has been completely demolished after the closing of the store operated by Ito-Yokado Co., Ltd. As of the date of the this document Costco
Wholesale Japan, Ltd. is proceeding with plans to open a store on the site of the former Ito-Yokado Building. (This plan is referred to as the “Costco Wholesale Japan Opening Plan” hereafter. The buildings
located in the Hamamatsu Plaza East area are collectively referred to as “Hamamatsu Plaza East” hereafter.) The Investment Corporation acquired trust beneficiary interests in real estate other than the Hamapla& Frespo Building and the Hamamatsu Plaza Sports Building (Zexis) on July 28, 2005, and began operations, but disposed portions to Sekisui House, Ltd. on March 30, 2012, and September 30, 2013, and thus
holds only 49% quasi-co-ownership of trust beneficiary interests in real estate in the part of Hamamatsu Plaza East, which excludes the site of the Costco Wholesale Japan Opening Plan (collectively referred toas “Hamamatsu Plaza East Xebio Building and Other Portions” hereafter) as of the date of the this document. Therefore, the “Estimated value at end of period”, “Acquisition Price” and “Balance Sheet Amount”
above are cash amounts that correspond to the Investment Corporation’s 49% quasi-co-ownership, and thus do not include the disposed portion. Additionally, Costco Wholesale Japan, Ltd. intends to build a gas
station for Costco members (referred to as “Planned Site of Construction of Gas Station for Costco Members” hereafter) in conjunction with the Costco Wholesale Japan Opening Plan, and Costco and the trusteeof the trust beneficiary interests in real estate of Hamamatsu Plaza East Xebio Building and Other Portions concluded a fixed-term land lease agreement for business purposes of a portion of Hamamatsu Plaza
East Xebio Building and Other Portions on April 4, 2017.
Note 9: The Hamapla & Frespo Building and Planned Site of Construction of Gas Station for Costco Members located in the Hamamatsu Plaza East area and described previously in (Note 8) are leased land; therefore,
the DCF method was used to calculate the income approach value for the leased land portion, and “Direct capitalization rate” and “Terminal capitalization rate” are not indicated. In addition, “Discount rate” on thetable above are indicated for properties other than the Hamapla & Frespo Building and the Planned Site of Construction of Gas Station for Costco Members. The discount rates as of March 31, 2017 for the
Hamapla & Frespo Building and the Planned Site of Construction of Gas Station for Costco Members calculated using the DCF method were 4.9% (period-on-period: -0.1%) and 4.9% (no period-on-period data
exists because the contract has been concluded during the 23rd FP), respectively.

60

Overview of Interest-Bearing Debt（1）Loans

As of date of this document
Contract

The individual loan contract dated July 30, 2012
Current
portion of
The individual loan contract dated February 25, 2013
long-termloans payable Subtotal

Balance

Interest Rate

(Note 1)

(Note 2)

August 2, 2012

¥2,705 million

February 28, 2013

¥2,100 million

Borrowing period

Drawdown Date

5 years and 1 month

5 years

Fixed / Floating

Repayment Date

0.95750%

Fixed (Note 3)

August 31, 20170.75600%

Fixed (Note 3)

February 28, 2018

¥4,805 million

The individual loan contract dated July 30, 2012

6 years and 7 months

August 2, 2012

¥3,882 million

1.15475%

Fixed (Note 3)

February 28, 2019

The individual loan contract dated February 5, 2013

6 years and 1 month

February 8, 2013

¥4,500 million

0.89900%

Fixed (Note 3)

February 28, 2019

The individual loan contract dated February 25, 2013

7 years

February 28, 2013

¥5,242 million

1.02225%

Fixed (Note 3)

February 28, 2020

7 years

August 30, 2013

¥5,500 million

1.17200%

Fixed (Note 3)

August 31, 2020

5 years

August 30, 2013

¥2,500 million

0.45727%

Floating

August 31, 2018

8 years and 1 monthJanuary 31, 2014

¥1,800 million

1.17350%

Fixed (Note 3)

February 28, 2022

8 years

February 28, 2014

¥4,680 million

1.11000%

Fixed (Note 3)

February 28, 2022

7 years

February 28, 2014

¥3,900 million

0.95225%

Fixed (Note 3)

February 26, 2021

6 years

February 28, 2014

¥1,550 million

0.79614%

Fixed (Note 3)

February 28, 2020

7 years

March 28, 2014

¥2,100 million

0.97300%

Fixed (Note 3)

February 26, 2021

8 years

August 29, 2014

¥5,400 million

0.96475%

Fixed (Note 3)

August 31, 2022

7 years

August 29, 2014

¥4,400 million

0.83600%

Fixed (Note 3)

August 31, 2021

8 years

February 27, 2015

¥7,100 million

0.86650%

Fixed (Note 3)

February 28, 2023

8 years

February 27, 2015

¥1,000 million

0.85250%

Fixed

February 28, 2023

7 years

February 27, 2015

¥3,350 million

0.73975%

Fixed (Note 3)

February 28, 2022

6 years

February 27, 2015

¥3,900 million

0.62800%

Fixed (Note 3)

February 26, 2021

7 years and 7 months

January 29, 2016

¥2,200 million

0.67400%

Fixed

August 31, 2023

7 years and 7 months

January 29, 2016

¥1,900 million

0.68030%

Fixed (Note 3)

August 31, 2023

7 years and 11 months

April 1, 2016

¥4,750 million

0.45500%

Floating

February 29, 2024

7 years and 11 months

April 1, 2016

¥1,750 million

0.50500%

Fixed

February 29, 2024

The individual loan contract dated August 27, 2013

The individual loan contract dated January 28, 2014

The individual loan contract dated February 25, 2014

Long-term
loans
payableThe individual loan contract dated March 25, 2014

The individual loan contract dated August 26, 2014

The individual loan contract dated February 24, 2015

The individual loan contract dated January 26, 2016

The individual loan contract dated March 29, 201661

Overview of Interest-Bearing Debt（2）Contract

The individual loan contract dated August 26, 2016

Long-Termloans
payableThe individual loan contract dated February 23, 2017

Balance

Interest Rate

(Note 1)

(Note 2)

Fixed / Floating

Repayment Date

August 31, 2016

¥3,000 million

0.59750%

Fixed

August 29, 2025

9 years

August 31, 2016

¥600 million

0.57000%

Fixed

August 29, 2025

8 years

August 31, 2016

¥1,900 million

0.49500%

Fixed

August 30, 2024

9 years

February 28, 2017

¥4,000 million

0.77880%

Fixed

February 27, 2026

9 years

February 28, 2017

¥1,500 million

0.72500%

Fixed

February 27, 2026

8 years

February 28, 2017

¥1,800 million

0.67000%

Fixed

February 28, 2025

8 years

February 28, 2017

¥600 million

0.61000%

Fixed

February 28, 2025

3 years and 6 months

February 28, 2017

¥1,600 million

0.31000%

Fixed

August 31, 2020

Borrowing period

Drawdown Date

9 years

Subtotal¥86,404 million

Total loans¥91,209 million

Investment Corporation Bonds
Name
Scheduled for First Series Unsecured Investment Corporation Bonds
redemption
within one year Subtotal

Other than
the above

Date of issuance
February 28, 2013

Balance

Interest Rate

(Note 1)

(Note 2)

Fixed / Floating

Redemption Date

¥4,000 million

0.63000%

Fixed

February 28, 2018

¥4,000 million

Second Series Unsecured Investment Corporation Bonds

February 28, 2013

¥2,000 million

1.00000%

Fixed

February 28, 2020

Third Series Unsecured Investment Corporation Bonds

February 28, 2014

¥2,500 million

0.37400%

Fixed

February 28, 2019

Fourth Series Unsecured Investment Corporation Bonds

February 28, 2014

¥3,000 million

1.06900%

Fixed

February 28, 2024

Fifth Series Unsecured Investment Corporation Bonds

August 29, 2014

¥3,000 million

0.87100%

Fixed

August 30, 2024

Subtotal¥10,500 million

Total Investment Corporation Bonds¥14,500 million

Total interest-bearing debt

¥105,709 million

Note 1: Amounts are rounded down to the nearest million yen.
Note 2: Interest rates as of date of this document are indicated.
Note 3: Interest rate swap agreements are concluded in order to avoid the risk of rising interest rates, and the interest rates indicated are the rates fixed with the interest rate swap agreements.
Note 4: Above borrowings are unsecured and unguaranteed.

62

Overview of Unitholders as of March 31, 2017
Major Unitholders

Diversification of Unitholders
Investment
Units Owned(units)Ratio of Investment
Units Owned to Total
Investment Units
Issued (%)

Japan Trustee Services Bank, Ltd.
(Trust Account)

306,022

27.68

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

78,069

7.06

Trust & Custody Services Bank, Ltd.
(Securities Investment Trust Account)

73,867

6.68

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

39,527

3.57

Sekisui House, Ltd.

39,000

3.52

Name / Company Name

Financial Institutions(including securities companies)

Other domestic firms

Foreign firms

Individuals and others

153 (1.43%)
206 (1.92%)
165 (1.54%)
Mar. 31, 2017
10,702 unitholders

10,178 (95.10%)
135 (1.23%)
215 (1.97%)
158 (1.44%)

Sept. 30, 2016
10,935 unitholders

10,427 (95.35%)
136 (1.14%)
227 (1.90%)

THE HACHIJUNI BANK, LTD.

19,964

1.80

DEUTSCHE BANK AG LOMDON-PB NON-TREATY
CLIENTS 613

19,7401.78

THE FUJI FIRE AND MARINE INSURANCECOMPANY, LIMITED

17,130

1.54

The Hokuriku Bank, LTD.

16,991

1.53

Mitsubishi UFJ Trust and Banking Corporation

16,103

1.45

626,41356.66

147 (1.23%)
Mar. 31, 2016
11,958 unitholders

11,448 (95.74%)

0%

Total

10%

20%

30%

40%

50%

60%

Sumitomo Mitsui
Trust Bank, Limited

Asset Management One
Co., Ltd.

103,839 units

122,319 units

Total percentage ofownership

9.39%

11.06%

Submission dateFebruary 22, 2017

April 28, 2017

Name
Total units held

Note: The above ratios are rounded to the nearest second decimal place.

80%

90%

100%

Note: The percentages above are rounded to the second decimal place. Therefore, the percentages
may not add up to 100%.

Mar. 31, 2017
1,105,510 units

752,248 Units(68.05%)77,373 Units
107,589 Units(7.00%)(9.73%)
168,300 Units(15.22%)

Sept. 30, 2016
1,018,110 units

673,997 Units(66.20%)93,332 Units
110,442 Units(9.17%)(10.85%)140,339 Units(13.78%)Mar. 31, 2016
1,018,110 units

651,771 Units(64.02%)

Note: The above ratios are rounded down to the second decimal place.

The status of large holdings as determined by the large share holdings reports (including
reports of changes) submitted by May 8, 2017 is as follows.

70%

0%

10%

20%

30%

40%

92,283 Units(9.06%)

50%

60%

70%

121,106 Units
152,950 Units(11.90%)(15.02%)
80%

90%

100%

Note: The percentages above are rounded to the second decimal place. Therefore, the percentages
may not add up to 100%.

63

Change in Investment Unit Price and Trading Volume
Change in Investment Unit Price and Trading Volume with Sekisui House as sponsor since March 2010
（Yen）
160,000

2,400
Sekisui House SI Residential Investment Corporation investment unit price (left axis)
TSE REIT Index (right axis)

120,000

1,800

80,0001,200

40,000

600

0

Mar.
2010

Sept.
2010

Mar.
2011

Sept.
2011

Mar.
2012

Sept.
2012

Mar.
2013

Sept.
2013

Mar.
2014

Sept.
2014

Mar.
2015

Sept.
2015

Mar.
2016

Sept.
2016

0

Mar.
2017

35,000（Units）
30,000
Trading volume
25,00020,00015,00010,0005,000
0

201 0/3/31

201 0/9/30

201 1/3/31

201 1/9/30

Mar.
2010

Sept.
2010

Mar.
2011

Sept.
2011

201 2/3/31

Mar.
2012

201 2/9/30

Sept.
2012

201 3/3/31

Mar.
2013

201 3/9/30

Sept.
2013

201 4/3/31

Mar.
2014

201 4/9/30

Sept.
2014

201 5/3/31

Mar.
2015

201 5/9/30

Sept.
2015

201 6/3/31

Mar.
2016

201 6/9/30

Sept.
2016

201 7/3/31

Mar.
2017

Note: As a five-for-one split of investment units was implemented on April 1, 2014, investment units have been traded at one-fifth (the ex-rights) unit price on and after March 27, 2014. In consideration of the impact of
the split, the above graph is based on actual figures of “Investment Unit Price” for March 27, 2014 and earlier being divided by five and actual figures of “Trading Volume” being multiplied by five.

64

MEMO

MEMO

This document is provided for information purposes only and is not a solicitation for investment, nor arecommendation or invitation to make specific transactions. We caution readers to contact their securities
companies with regard to the purchase of investment units in Sekisui House SI Residential Investment
Corporation and to undertake investment decisions at their own discretion.
This document is not a disclosure document or report under the Financial Instruments and Exchange Act, theAct on Investment Trusts and Investment Corporations, public listing regulations of the Tokyo Stock Exchange
or other related laws and regulations.
Strategies, goals and forward-looking statements contained herein are based upon specific assumptions andjudgments made as of the date of the document in accordance with information available to Sekisui House SI
Residential Investment Corporation at the time. Information herein is subject to impact from risks, uncertainties,
assumptions and other factors. Accordingly, strategies, goals and forward-looking statements do not guarantee
the Investment Corporation’s future performance, operating results or financial position. Actual results may
differ significantly from explicit or implicit statements made herein regarding future performance, operating
results, financial position or other conditions.
While Sekisui House SI Residential Investment Corporation has taken due care in the preparation of thisdocument, it does not guarantee the accuracy, completeness, rationality or fairness of its content. Readers arealso cautioned that the contents of this document are subject to change or removal without prior notice.
Duplication and reproduction of the content contained herein without prior consent is prohibited.
The material containing the information required under Article 23(1) and (2) of the AIFMD is available at
http://www.shsi-reit.co.jp/en_cms/ir/library.html

Asset Management Company: Sekisui House Asset Management, Ltd.
Licensed by Director General, Kanto Regional Finance Bureau, as Financial Instruments Business Operator License No. 337.
Member of the Investment Trusts Association, Japan