Sekisui House SI Asset Management, Ltd.

Sekisui House SI Residential Investment Corporation
Business Results for the 22nd Fiscal PeriodBusiness Results
for the 22nd Fiscal Period from Apr.1, 2016 to Sept. 30, 2016

November 16, 2016◇ This document is provided for information purposes only and is not a solicitation for investment, nor a recommendation
or invitation to make specific transactions. We caution readers to contact their securities companies with regard to thepurchase 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, the Act 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 theInvestment 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 this document, it
does not guarantee the accuracy, completeness, rationality or fairness of its content. Readers are also cautioned thatthe 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

Contents
I. Overview of the 22nd FP and Thereafter

VI. CSR and Environmental Activities

・Highlights

5・Summary of Business Results for the 22nd FP

6・Analysis of Change in Initial Forecast Cash Distributions for the 22nd FP

7・Forecasts for the 23rd FP

36

・Status of the 22nd FP-End Appraisal Value, etc.

8・Analysis of Change in Forecast Cash Distributions for the 23rd FP

37

・Forecasts for the 24th FP

38

・Analysis of Change in Forecast Cash Distributions for the 24th FP

39

・Residential Properties Planned, Developed or Owned by Sekisui House
Group

40

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

41

II. Overview of Public Offering in October 2016 and Determination on
Fee Rates to Be Applied for Asset Management Fees
・Public Offering Implemented in Oct. 2016 (23rd FP)
・Determination on Fee Rates to Be Applied for New Asset Management
Fee System

1012III. External Growth Results in and after the 22nd FP
・Establishment of Virtuous Growth Cycle

15

・Overview of Assets Acquired in the 22nd FP

16

・Overview of Assets Acquired in the 23rd FP through Public Offering

17・Overview of Assets disposed in the 22nd FP

18

・Status of Residential Portfolio

19

IV. Internal Growth Results for the 22nd FP
・Occupancy Ratio and NOI Yield

21

・Residential Properties Occupancy Status by Investment Area

22

・Residential Properties New / Renewed Contract Rent Trends

23

・Status of Selected Management Data on Residential Properties

24

・Leasing Capability Enhancement Activities

25

・Cost Reduction Activities

26

・Asset Value Maintenance and Improvement Activities

27

・Examples of Initiatives in CSR and Environmental Activities

34

VII. Forecasts for the 23rd FP and 24th FP

VIII. Appendix
・Balance Sheet

43

・Statement of Income and Retained Earnings

45

・Statements of Cash Flows / Cash Distributions

46

・Summary of Selected Financial Data

47

・History of the Investment Corporation since Listing48

・Portfolio Development Policy

49

・Portfolio Map

50

・List of Properties Owned at End of Period

52

・List of Fiscal Period-End Estimated Values

56

・Overview of Interest-Bearing Debt

60

・Overview of Unitholders as of September 30, 2016

62

・Historical Investment Unit Price

63

V. Financial Activities in and after the 22nd FP
・Major Initiatives in and after the 22nd FP

30

・Changes in Major Financial Indicators Related to Interest-Bearing Debt

32
3

Prime Maison SHIBUYA

I. Overview of the 22nd FP and Thereafter

プライムメゾン東桜
マスト博多
マスト博多

Highlights

22nd FP (Ended Sept. 2016)
 Announced transition to Phase III, the next growth stage, in May 2016
Due to the disposition of b-town MINAMIAOYAMA in Sept. 2016, HAMAMATSU Plaza became the only retail property
remaining
External growth results

Internal growth results

Financial results• Acquired 4 residential properties for a totalof ¥6.81 billion• Average occupancy
ratio for the fiscal period

96.3%(residences only)• Average borrowing cost rate

0.95%

• Disposed 1 retail property, etc. for a total of¥1.58 billion• Average NOI yield

5.1%(residences only)• Period-end total assets LTV

53.5%

Initial forecast
cash distribution

Revised forecast
cash distribution

Actual cash distribution

Implementation of internal reserves¥2,130 per unit

¥2,145 per unit

¥2,145 per unit

¥8 million(announced May 16, 2016)(announced October 7, 2016)(up ¥15 from initial forecast)(Cumulative internal reserves: ¥183 million)

23rd FP (Ending Mar. 2017) and Thereafter Implemented public offering in Oct. 2016 for the first time in two years
Expect increase of cash distributions with acquisition of 2 residential properties and application of new asset
management fee system
Forecast cash distribution
for the 23rd FP

Forecast cash distribution
for the 24th FP¥2,180 per unit

¥2,170 per unit

(Increase of ¥35 from 22nd FP)(Decrease of ¥10 from 23rd FP)

Major assumptions of management status forecast

Assets under management in each fiscal period

LTV after the public offering

113 properties(total acquisition price ¥207.6 billion)

51.0 %(estimate)

Aggressively implement Phase III, growth strategy for the new stage, by using the public offering in Oct. 2016 as an opportunity
5Summary of Business Results for the 22nd FP
Actual cash distributions
for the 22nd FP

 Increase of 0.7% from initial
forecast for the 22nd FP¥2,145 per unit

 Increase of 0.9% from resultsof the 21st FP

Increased of cash distributions above the initial forecast
through producing gain on sales from disposition of b-town
MINAMIAOYAMA, etc. in addition to management status
generally performing as expectedComparison with Forecasts[Reference]
Revised forecast forthe 22nd FP(announced Oct. 7, 2016)

Initial forecast forthe 22nd FP(announced May 16, 2016)

The 22nd FP
ended Sept. 30, 2016(183 days)(actual)◇Factors for difference from initial forecast

Difference・ Operating income

Operating revenue¥6,694 million¥6,682 million¥6,693 million¥10 million

0.2%

Operating income¥2,746 million¥2,720 million¥2,739 million¥19 million

0.7%

Ordinary income¥2,200 million¥2,172 million¥2,193 million¥21 million

1.0%

Net income¥2,197 million¥2,169 million¥2,192 million¥23 million

1.1%¥12 million-¥8 million¥8 million-¥2,145¥2,130¥2,145¥15

0.7%

Provision for reserve for
reduction entry
Cash distributions per unit

Operating revenue
Decrease in rent revenue
Decrease in other rent business revenue
Increase in gain on sales of real estate properties:::-¥3 million-¥4 million+¥18 million::+¥0 million-¥9 million::-¥0 million-¥2 million

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

・ Ordinary income
Decrease in non-operating revenue
Decrease in non-operating expenses

Comparison with Previous Fiscal Period
The 21st FP
ended Mar. 31, 2016(183 days)(actual)The 22nd FP
ended Sept. 30, 2016(183 days)(actual)Operating revenue¥6,543 million¥6,693 million¥150 million

2.3%

Operating income¥2,741 million¥2,739 million-¥2 million-0.1%

Ordinary income¥2,214 million¥2,193 million-¥20 million-0.9%

Net income¥2,210 million¥2,192 million-¥18 million-0.8%¥47 million¥8 million-¥38 million-81.8%¥2,125¥2,145¥20

0.9%

Provision for reserve for
reduction entry
Cash distributions per
unit◇Factors for change from previous period’s results

Change・ Operating income
Operating revenue
Increase in rent revenue
Decrease in other rent business revenue
Decrease in gain on sales of real estate properties: +¥350 million:-¥8 million: -¥191 million

Operating expense
Increase in expenses related to rent business
Decrease in other business expenses: +¥152 million-¥0 million:

・ Ordinary income
Decrease in non-operating revenue
Increase in non-operating expenses::-¥0 million+¥17 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.

6

Analysis of Change in Initial Forecast Cash Distributions for the 22nd FP
22nd FP (Ended Sept. 2016): Apr. 1, 2016 to Sept. 30, 2016 (183 days)

Change in gain / loss
on salesInitial forecast forthe 22nd FP

Change in rent businessincome / loss

Gain on sale from
disposition of part of theland with respect to
EM HIGASHISHINJUKU

22nd FPNet income¥2,169 million

Gain on sale from
disposition of
bt MINAMIAOYAMA

Change in generaladministration expenses,
non-operating income / loss,
etc.

Decrease in otherbusiness expenses+¥9 million+¥14 million+¥4 million
Decrease in rent
business income
concerning
properties owned at
the end of 22nd FP

Decrease in rent
business income from
disposition of
bt MINAMIAOYAMA-¥4 million-¥4 million

Finalized figures of
22nd FP financial results

Decrease in nonoperating expenses,
etc.

22nd FPNet income¥2,192 million+¥4 million

Reserve for reduction
entry concerning gainon sale-¥8 million

Funds for cash
distributions

Funds for cash
distributions¥2,169 million¥2,183 million

Number ofinvestment units
issued
1,018,110 units

Number ofinvestment units
issued
1,018,110 units

Initially forecasted
cash distributions
per unit¥2,130No change in the number of investment units issued

Cash distributions per unit turned upward by +¥15 (+0.7%)

Finalized cash
distributions
per unit¥2,145
7

Status of the 22nd FP-End Appraisal Value, etc.
Changes in unrealized Gain/Loss of the Entire Portfolio and NAV per Unit
(million yen)
25,000

Unrealized gain / loss (left axis)

20,000¥92,880

NAV per Unit (right axis)¥97,222¥101,898¥108,793¥106,043(yen)
150,000
120,000

15,00090,00010,00060,0005,000

30,00000+¥5,947 million+¥9,980 million+¥14,691 million+¥18,864 million+¥21,655 million

End of 18th FP(Sept. 30, 2014)

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)

Appraisal value, etc.

¥173,301 million¥194,662 million¥200,694 million¥207,565 million¥214,650 million

Period-end book value¥167,353 million¥184,681 million¥186,002 million¥188,701 million¥192,994 million

Unrealized gain/loss¥5,947 million¥9,980 million¥14,691 million¥18,864 million¥21,655 million

+3.6%

+5.4%

Unrealized gain/loss ratio+7.9%+10.0%+11.2%

Note : “NAV per unit” for each fiscal period is calculated by subtracting total distributions 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.

RetailProperties

Residence

Status by Asset Class
Major factors in the change

End of 21st FP

End of 22nd FP

Appraisal value, etc.

¥203,833 million¥212,053 million

Period-end book value¥183,523 million¥189,327 million

 The appraisal values, etc. increased at 63 out of 106 residential properties owned at the end of 21st
FP due to decrease of cap rate, etc. (Increased at 63 properties, maintained at 24 properties anddecreased at 19 properties)

Unrealized gain / loss+¥20,309 million+¥22,725 million

 Acquired new properties (4 properties) at price lower than appraisal value during the 22nd FP

Appraisal value, etc.

¥3,732 million¥2,597 million

Period-end book value¥5,177 million¥3,666 million

Unrealized gain / loss-¥1,445 million-¥1,069 million

 With the disposition of b-town MINAMIAOYAMA burdened with unrealized loss (-¥328 million) at theend of 21st FP, the unrealized loss concerning the property has been eliminated The appraisal value for HAMAMATSU Plaza increased (+¥34 million) due to decrease of the cap
rate (10bp), etc.

Note: 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
The “Appraisal value, etc.” indicates either the appraisal value or survey value

8Prime Maison HATSUDAIII. Overview of Public Offering in October 2016
and Determination on Fee Rates to Be Applied for AssetManagement Fees

プライムメゾン東桜
マスト博多
マスト博多

Public Offering Implemented in Oct. 2016 (23rd FP) (1)
Overview of Public Offering

Overview of Acquired Assets

Issuance Resolution Date

October 7, 2016 (Friday)

Acquired assets: 2 residential properties

Acquisition date: November 1, 2016

Pricing Date

October 19, 2016 (Wednesday)

Total acquisition price: ¥8.5 billion

Total appraisal value: ¥8.76 billion

Number of Newly Issued
Investment Units

87,400 units(of which, 4,160 units were third-party allotment portion)

Average appraisal NOI yield:

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)(before amortization): 4.5%

Seller: Sekisui House(after amortization): 3.9%
Note : “Average appraisal NOI yield (before amortization)” is calculated by dividing total appraisal NOI based on direct
capitalization method on the appraisal reports that do not take depreciation and amortization into consideration by the
total acquisition price, and “Average appraisal NOI yield (after amortization)” is calculated by subtracting expected
depreciation and amortization for each acquired asset from the appraisal NOI mentioned above and dividing the totaled
gained amounts by the total acquisition price. Both are rounded to the first decimal place.

Effects of Public Offering
Further expansion of the asset size

Reduction of LTV

Acquired 2 high quality residential properties developed by
Sekisui House by using funds procured through the public offering

Further enhanced stable financial basethrough the public offering

End of 22nd FP

After public offering¥207.6 billion¥199.1 billion(111 properties)(113 properties)

Increase in NAV per unit
Realized public offering with premium at a price
above NAV per unit at the end of 22nd FP
End of 22nd FP¥108,793

End of 22nd FP

53.5%

After public offering

51.0%(estimate)

The borrowing capacity up to LTV of 55%, increased toapprox. ¥18 billion (estimate) from ¥6.8 billion

After public offering¥109,210(estimate)

Aim to maintain and improve the cash distribution level by
effectively utilizing capacity to acquire properties including
cash on hand

Note 1 : “NAV per unit at the end of 22nd FP” is calculated by subtracting total cash distributions in the 22nd FP (Ended Sept. 2016) from the amount of market value net assets based on appraisal values and dividing the gained amount by the total
number of investment units issued and outstanding as of the end of the 22nd FP, and rounded down to the nearest whole number. “NAV pert unit after public offering” is an estimated figure calculated by taking appraisal values of the acquired
assets following the public offering implemented in October 2016 and the number of investment units issued through the public offering into consideration, based on NAV as of the end of 22nd FP (Ended Sept. 2016).
Note 2 : “LTV at the end of 22nd FP” is the ratio of interest-bearing debt to the amount of total assets as of the end of the 22nd FP (Ended Sept. 2016). “LTV after public offering” is calculated by taking funds procured through the public offering
implemented in October 2016 and deposit from tenants for the acquired assets mentioned above into consideration, based on the total assets at the end of the 22nd FP (Ended Sept. 2016). Both are rounded to the first decimal place. The same
applies hereafter.

10

Public Offering Implemented in Oct. 2016 (23rd FP) (2)Investment Unit Price Before and After the Issuance Resolution Date for the 23rd FP Public Offering
Although the Investment Corporation’s investment unit price decreased on the next day of the issuance resolution date, it turned around to trend
upward afterwards and has outperformed the TSE REIT Index and TSE REIT Residential Index
Investment unit closing price

TSE REIT Index

TSE REIT Residential Index

Status of performanceOct. 27, 2016
Additional listing date of primary offering

Issuance resolution datetopricing date

110
Oct. 7, 2016
Issuance resolution date

Oct. 19, 2016
Pricing date105

95
Investment unit price¥117,300
90

Oct.
10/33

Oct.
10/44

Oct.
10/55

Oct.
10/66

Oct.
10/77

Oct.
11
10/11

Investment unit price¥121,500

Investment unit price¥117,800
Oct.
12
10/12

Oct.
13
10/13

Oct.
14
10/14

Oct.
17
10/17

Oct.
18
10/18

Oct.
19
10/19

Oct.
20
10/20

Oct.
21
10/21

Oct.
24
10/24

Oct.
25
10/25

Oct.
26
10/26

Oct.
27
10/27

Oct.
28
10/28

Oct.
31
10/31

1.5 points

TSE REIT
Index

Outperformed

TSE REIT
Residential
Index

Outperformed

100

1.2 points

Note : The graphs on respective 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.

Change in Market Capitalization and Trading Volume

Marketcapitalization

Market capitalization further expanded as a result of the public offering
as of December 30, 2015

as of October 31, 2016¥110.3 billion¥133.7 billion

Total number of investment
units issued and outstanding
1,018,110 units

Total number of investment
units issued and outstanding
1,101,350 units

Contributes to increase of liquidity

Trading volume(number of units)

January to October 2016

Average per day

Average per day¥306 million¥510 million(2,508 units)(4,386 units)(billion yen)
1,900
190

Market capitalization (right axis)
Trading volume (left axis)

37,50025,000January to December 2015

Resolution of issuance: Oct. 7, 2016
23rd FP public offering(units)
50,0001,600
160Market capitalization:¥130 billion

1,300
130

12,500

0
12/11
Dec.
2015

1,000
100

70
700
1/11
Jan.
2016

2/11
Feb.

3/11
Mar.

4/11
Apr.

5/11
May

6/11
Jun.

7/11
Jul.

8/11
Aug.

9/11
Sept.

10/11
Oct.

Oct. 3111

Determination on Fee Rates to Be Applied for New Asset Management Fee System
Determined fee rates for new asset management fee system
to be applied from 23rd FP (Ending Mar. 2017)

Expected amount of decrease in asset management fee
assumed for 23rd FP (Ending Mar. 2017)

Up to 22nd FP(before change)

Asset management fee (1)Linkage with realestate appraisal
value, etc.

Asset management fee (2)Linkage withincome before
income taxes

Lower the entire asset
management fee

Change to asset management fee system emphasizing
linkage with actual operating performance of assets undermanagement
II
System with higher linkage with unitholder’s interest

Linkage to amountof total assets

Asset management fee (1)Linkage to NOIAsset management fee (2)Raising of part linked to performance

Asset management fee system before change

Asset management fee system after change

Classification

Asset management fee (2)Acquisition / disposition fees
Merger fee(from before)

23rd FP and after(after change)

Lowering of part linked to asset size

Asset management fee (1)- ¥139million

FormulaFee rate

Real estate appraisal value, etc. × Fee rate (annual rate)

0.4%

Income before income taxes × Fee rate

3.0%

0.8%
(0.4%＊)

Purchase price × Fee rate‒‒

FormulaAmount of total assets ×
Fee rate (annual rate)

up to ¥200 billion
above ¥200 billion

NOI × Fee rate
Acquisition or disposition price × Fee rate
Appraisal value of real estate-related assets inherited
through merger × Fee rate

Maximum fee
rate

Applicable fee
rate

0.22% perper annum

0.15%
annum

0.10%
per annum

5.0%

4.0%

0.8%
(0.4%＊)

0.8%(0.4%＊)

0.8%

(＊＊)

＊＊ : The figure in parenthesis (0.4%) will be applied in cases of transactions with interested parties, etc.
＊＊ : The applicable rate for the merger fee has been left undetermined as there is no specific plan of any merger. The applicable rate will be determined in the future as needed upon discussion.

Note 1 : “Expected amount of decrease in asset management fee assumed for 23rd FP” above is the amount of difference between the expected asset management fee for the 23rd FP and the assumptive fee calculated based on asset management fee
system before change.
Note 2 : “Amount of total assets” above refers to amount of the total assets as shown in the balance sheet of the preceding FP of each operating period. NOI refers to the amount in which the total expenses related to rent business (excluding depreciationand loss on disposal of fixed asset) is subtracted from the total real estate rent revenue (including dividends for equity interest in silent partnership on real estate or real estate-backed securities as well as similar revenue) calculated for each
operating period.

12

Memo

13

Esty Maison UEMACHIDAIIII. External Growth Results in and after the 22nd FP

プライムメゾン東桜
マスト博多
マスト博多

Cash distributions

Establishment of Virtuous Growth Cycle
20th FP¥2,200¥2,150¥2,122¥2,10021st FP

22nd FP

23rd FP¥ 2,145¥ 2,18024th FP¥ 2,170(forecast)¥ 2,125(forecast)

Aim to achieve cash
distribution target of¥2,200 at an early stage

To the stage of improving cash distribution level while securing a stable cash distribution level
End of 20th FP

55%

End of 21st FP

End of 22nd FP

23rd FP after public offering

LTV

53.5 %
51.5%

52.3%

Continue conservative LTV control withthe lower 50% level as a target

51.0 %(estimate)

50%

Utilization of borrowing capacity

Creation of borrowing capacity
through public offering

Utilization ofborrowing capacity

Residence

Asset size (total acquisition price)

Other real estate in trust (retail properties)¥191.0 billion(110 properties)¥193.8 billion(108 properties)¥199.1 billion(111 properties)

Aim for asset size of ¥300 billion while
striving to maintain and improvethe cash distribution level¥207.6 billion(113 properties)

Promote enhancement ofresidential portfolio
22nd FP: Acquired 4 residences for ¥6.8 billion
PM SHIBUYA, PM HATSUDAI,
EM UEMACHIDAI and
EM KOBE-SANNOMIYA
Investment
ratio ofresidential
properties

23rd FP: Acquired 2 residences for ¥8.5 billion

93.0%

97.2%

98.1%

98.2%

Promote steady expansion of asset size while replacing retail properties
with residential properties
Investment
ratio of retailproperties

7.0%

2.8%

1.9%

PM SHIROKANE-TAKANAWA andPM ICHIGAYAYAMABUSHICHO

HAMAMATSU Plaza is
the only retail property remaining

1.8%

22nd FP: Disposed 1 retail property

2015年9月期末
Endof 20th FP（第20期末）(EndedSept. 2015)2016年3月期末End
of 21st FP（第21期末）(EndedMar. 2016)2016年9月期末
End
of 22nd FP（第22期末）(EndedSept. 2016)

第23期
23rd
FP
after公募増資後
public offering

～
～

～
～

b-town MINAMIAOYAMA

Note: Both “Investment ratio of residential properties” and “Investment ratio of retail properties” above are calculated based on acquisition prices and rounded to the first decimal place.

15

Overview of Assets Acquired in the 22nd FP
Acquired high quality “Prime Maison” series properties planned/developed through property planning meetings with Sekisui House
Prime Maison
SHIBUYA

Greater Tokyo / Major Urban
Areas

Property age
2.3 years

Acquisition price¥2,190 million

Prime Maison
HATSUDAIGreater Tokyo / Major Urban
Areas

Property age
1.9 years

Appraisal value

Acquisition priceAppraisal value¥2,300 million¥2,700 million¥2,850 million

Appraisal NOI yield

4.5%(before amortization)

Appraisal NOI yield

4.0%(after amortization)

4.7%(before amortization)

3.8%(after amortization)

Location

Shibuya, Shibuya-ku, Tokyo

Location

Hatsudai, Shibuya-ku, Tokyo

Nearest station

Approx. 4-minute walk from Shibuya Station on the
JR Yamanote Lines, etc.

Nearest station

Approx. 3-minute walk from Hatsudai Station on the
Keio Shinsen Line of the Keio Corporation

Completed

July 4, 2014

Completed

December 11, 2014

Acquisition date

April 1, 2016

Acquisition date

April 1, 2016

Occupancy rate

96.6% (As of September 30, 2016)

Occupancy rate

100.0% (As of September 30, 2016)

Acquired residential properties through maximum utilization of the nationwide network of the Sekiwa Real Estate Group
Esty Maison
UEMACHIDAI

Major Urban Areas

Property age
11.2 years

Acquisition price¥950 million

Esty Maison
KOBE-SANNOMIYA

Major Urban Areas

Property age
9.6 years

Appraisal value

Acquisition priceAppraisal value¥978 million¥970 million¥975 million

Appraisal NOI yield

5.4%(before amortization)

4.1%(after amortization)

Appraisal NOI yield

5.5%(before amortization)

4.0%(after amortization)

Location

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

Location

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

Nearest station

Approx. 4-minute walk from Tanimachi 6-chome
Station on the Nagahori Tsurumi Ryokuchi andTanimachi Lines of the Osaka Municipal Subway

Nearest station

Approx. 7-minute walk from Kobesannomiya Stationon the Hanshin Main Line, etc.

Completed

August 17, 2005

Completed

March 22, 2007

Acquisition date

April 1, 2016

Occupancy rate

93.2% (As of September 30, 2016)

Acquisition date

April 1, 2016

Occupancy rate

94.0% (As of September 30, 2016)

Note: The above “appraisal values” are those on the appraisal reports by real estate appraisers as of the acquisition of the proper ties and “appraisal NOI yields (before amortization)” are calculated by dividing the appraisal NOI based on the direct
capitalization method on the appraisal reports that do not take depreciation and amortization into consideration by the acqui sition price and rounded to the first decimal place, and “appraisal NOI yields (after amortization)” are the figures calculated bysubtracting expected depreciation and amortization for each acquired assets from the appraisal NOI mentioned above and dividi ng the gained amounts by the acquisition price and rounded to the first decimal place. Also, the reference date for theproperty ages is the date of this document, and property ages are rounded down to the first decimal place. The same follows hereafter.

16

Overview of Assets Acquired in the 23rd FP through Public Offering
Acquired high quality “Prime Maison” series properties planned/developed through property planning meetings with Sekisui House
Prime Maison
SHIROKANE-TAKANAWA

Greater Tokyo / Major
Urban Areas

Property age
1.4 years

1

Prime Maison
ICHIGAYAYAMABUSHICHO

3

Greater Tokyo / Major
Urban Areas

Property age
1.0 years

1

3

4

4
2

2

1. Model room (1K-type)
2. Model room (1R-type)
3. Entrance hall
4. Indoor hallway

Acquisition priceAppraisal value¥4,500 million¥4,690 million

Appraisal NOI yield

4.5%

3.9%

(before amortization)(after amortization)

1. Model room (1K-type)
2. Model room (1LDK-type)
3. Entrance
4. Indoor hallway

Acquisition priceAppraisal value¥4,000 million¥4,070 million

Appraisal NOI yield

4.6%

3.9%

(before amortization)(after amortization)

Location

Mita, Minato-ku, Tokyo

Location

Ichigaya Yamabushicho, Shinjuku-ku, Tokyo

Nearest station

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

Nearest station

Approx. 3-minute walk from Ushigome-yanagicho Station on the Toei
Subway Oedo Line, etc.

Leasable units

147 units

Residence type

Mainly of single and compact type

Leasable units

117 units

Residence type

Mainly of single and compact type

Completed

June 15, 2015

Acquisition dateNovember 1, 2016

Completed

October 13, 2015

Acquisition dateNovember 1, 2016

Occupancy rate

96.8%(as of aquisition)

Occupancy rate

92.5%(as of aquisition)

17

Overview of Assets Disposed in the 22nd FP
b-town MINAMIAOYAMAPart of the Land with Respect to Esty Maison HIGASHISHINJUKU

Location

Minami-Aoyama, Minato-ku, Tokyo

Location

Shinjuku, Shinjuku-ku, Tokyo

Buyer

Domestic business company

Buyer

Domestic general business company

Date of sale

September 16, 2016

Disposition dateJuly 29, 2016

Actual NOI yield

3.2% (before depreciation)

Acquisition price¥1,530 million

Disposed part

Continuous ownership part
Note : “Actual NOI yield” above is calculated by dividing theannualized actual NOI of the concerned property in the 21st
FP by the acquisition price and rounded to the first decimal
place.

Building ofEsty Maison
HIGASHISHINJUKUAcquisition price¥1,363 million

Book value¥1,350 million

As of end of
the 22nd FP

Appraisal value¥1,550 million

As of end of
the 22nd FP

Disposition priceAppraisal value

Book value

Gain on sale

Disposition priceAppraisal value

Book value

Gain on sale

¥1,560 million¥1,170 million¥1,495 million¥4 million¥23 million¥12 million¥7 million¥14 million

Total gainon sale¥18 million

Reserved internally part of gain on sale (¥8 million) as reserve for
reduction entry in 22nd FP

Will use for measures that will contribute to securing astable distribution level in the future and such

Note: The above appraisal values are those on the appraisal reports by real estate appraisers as of the end of March 2016 for b-town MINAMIAOYAMA and as of June 1, 2016 for disposition targeted parts of Esty Maison HIGASHISHINJUKU, respectively.
Furthermore, appraisal value for disposition targeted parts of Esty Maison HIGASHISHINJUKU is a limited value presupposing the merge with adjacent land.

(Reference) Ownership status and future management policy of HAMAMATSU PLAZA
HAMAMATSU PLAZA WEST

the Hamamatsu Plaza Owned
Sports Building (Zexis) Sokochi only

HAMAMATSU PLAZA EAST
the Hamapla &Frespo Building

It has been decided that Costco Wholesale Japan, Ltd. will bea succeeding tenant for the former Ito-Yokado Building
through leasing activities by Sekisui House, the ownermanagement building

While putting efforts in stable management, aim to increase
the attractiveness of the entire facility and improve asset
value in collaboration with Sekisui House and consider
making the decision to dispose the property when appropriate

the Akachan
Honpo Building
the HamamatsuWest Building
underdemolition
work

100%
owned bySekisui House

the former Ito-Yokado
Building

the Xebio
Building

The weighted average of remaining years with respective tenant asof the end of 22nd FP

51%

49%

quasi-co-ownershipinterest Owned by
Sekisui Housequasi-co-ownershipinterest Owned by
the Investment Corporation

9.3 years
Note : “Weighted average of remaining years” above is based on tenant lease agreements
effective as of the end of 22nd FP and calculated by seeking the weighted average withthe shop rent (including land rent) during the lease period, and rounded down to thefirst decimal place.

18

Status of Residential Portfolio
Diversification statusby property age(based on acquisition price)

Diversification status by area(based on acquisition price)

Major Cities
Nationwide
28.8%(34 properties)

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

Greater Tokyo / 71.2%
Other Urban Areas
3.9%(6 properties)

50m2 to lessMore than 10 minutes
100m2 or more
Less than 5 years
than 100m2
9.4%
0.7%
8.1%
23.9%
(13 properties) Within 3 minutes(59 units)(7 properties)(2,162 units)
More
than
5
minutes
32.6%
Average
Average area
to within 10 minutes Within 10 (29 properties)
property age
Minute walk
per unit
2
27.9%
5
years
to
10 years or more
30m to less2
9.7 years less than (36 properties) 90.6%
than 50m 37.9 ㎡
42.4%
More than 3 minutes
10 years
25.0%(42 properties)
to within 5 minutes (2,255 units)
Less than 30m2
49.4%
30.2%
(57 properties)
50.5%(28 properties)(4,562 units)

50m2 to less
100m2 or more
More than 10 minutes
than 100m2
0.6%
9.1%
23.6%
(59 units)
67.4%(13 properties) Within 3 minutes (2,196 units)(68 properties)
More than 5 minutes
32.8%
Average
Average area
to within 10 minutes Within 10 (30 properties)
Greater Tokyo
property age
Minutewalk
30m2 to less per unit
5 years to
27.4%
2
10 years or morethan
50m
9.5 years less than (37 properties) 91.0%
Greater Tokyo / 71.2%
41.4%
25.2% 37.8 ㎡
Other Urban Areas
10 yearsMore than 3 minutes
Less than 30m2
(43 properties)
to within 5 minutes (2,344 units)
3.8%
48.2%
50.6%
(6 properties)
30.7%(58 properties)(4,712 units)(30 properties)
Greater Tokyo /Major Urban Areas

Less than 5 years
10.4%(9 properties)

100m2 or more
50m2 to lessMore than
2Less than 5 years
than 100m
0.6%
10 minutes 8.7%
14.1%
(59 units)
23.4%(13 properties) Within 3 minutes
27.6%
68.7%
(11 properties)(2,239units)(36 properties)(70 properties)
35.6%
More than 5 minutes
Average
Average area
to within 10 minutes Within 10 (32 properties)
Greater Tokyo
30m2 to less per unit
property age
26.2% Minute walk
2
than
50m
5 years to (37 properties)
10 years or more
9.2 years less than
91.3%More than 3 minutes 24.6% 37.6 ㎡
Greater Tokyo / 72.4%
Less than 30m2
39.7%
10 years
to within 5 minutes (2,357 units)
Other Urban Areas(43 properties)
51.4%
29.5%
46.2%
3.6%
(4,920 units)(30 properties)(58 properties)(6 properties)
Major Cities
Nationwide

As of dateof this document

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

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

Greater Tokyo

Major Cities
Nationwide
28.8%(36 properties)

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

Diversification status
by walking distance to station(based on acquisition price)

Greater Tokyo /Major Urban Areas

Primarily Greater Tokyo

Primarily new properties

Primarily properties near stations

Primarily single and compact 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 acquisiti on 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.

19

Esty Maison KOBE-SANNOMIYA

IV. Internal Growth Results for the 22nd FP

プライムメゾン東桜
マスト博多
マスト博多

Occupancy Ratio and NOI Yield
Monthly Occupancy Ratio
Residential properties

Other real estate in trust (retail properties)

Total

100%

97.1%

97.4%

96.7%

97.2%

96.8%

95%

90%

85%

80%

75%
Sept.
2014
End of18th FP

Oct.

Nov.

Dec.

Jan.
2015

Feb.

Mar.

Apr.

May

June

July

Aug.

End of19th FP

Sept.

Oct.

Nov.

Dec.

Jan.
2016

End of20th FPFP ended Mar. 31, 2016
(21st FP)

Mar.

Apr.

May

June

July

End of21st FP

Aug.

Sept.
End of22nd FP

Average NOI yield of owned properties atrespective period-end

Occupancy Ratios
FP ended Sept. 30, 2015
(20th FP)Feb.

FP ended Sept. 30, 2016
(22nd FP)FP ended
Sept. 30, 2015
(20th FP)FP endedMar. 31, 2016
(21st FP)FP ended
Sept. 30, 2016
(22nd 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

96.0%

95.5%

97.0%

96.3%

96.7%

96.3%

5.0%

5.1%

5.1%

Other real estate in trust(retail properties)

100.0%

99.9%

100.0%

100.0%

100.0%

100.0%

5.3%

3.2%

3.6%

Total

96.7%

96.2%

97.2%

96.5%

96.8%

96.5%

5.0%

5.1%

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 September 2014 toSeptember 2016.
Note 2: Among occupancy ratios in the above table, figures for “Average for the fiscal period” indicate the average of occupancy rati os as of the end of each month during the fiscal period ended September 30, 2015 (20th FP), the fiscal period ended
March 31, 2016 (21st FP) and the fiscal period ended September 30, 2016 (22nd FP). The same applies hereafter.
Note 3: “Average NOI yield of owned properties at respective period-end” in the table are percentages calculated by dividing the annualized leasing NOI by the total acquisition price with regards to each asset class the Investment Corporation owns as ofthe end of the fiscal period ended September 30, 2015 (20th FP), the fiscal period ended March 31, 2016 (21st FP) and the fiscal period ended September 30, 2016 (22nd FP). The same applies hereafter.
Note 4: All of the figures above are rounded to the first decimal place.

21

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

Major Cities Nationwide

Greater Tokyo / Other Urban Areas

Although occupancy decreased temporarily in someproperties, overall ratio remained steady at a levelexceeding 95%

Although occupancy decreased at the beginning of
the period, it remained steady after that at 95% orabove, as a result of flexible leasing

Remained steady at high occupancy ratio in all the
relevant areas

Average occupancy ratio during the FP:

Average occupancy ratio during the FP:

95.7% (±0pt year-on-year)

95.4% (+2.5pt year-on-year)

97.0% (+1.6pt year-on-year)

Average NOI yield of owned properties at period-end:

Average NOI yield of owned properties at period-end:

Average NOI yield of owned properties at period-end:

4.8% (before depreciation)

5.1% (before depreciation)

5.6% (before depreciation)

Area data

Number of properties:

68 properties

Total leasable area:

177,327.15 m2

Number of leasable units:

5,211 units

Number of properties:

6 properties

Total leasable area:

18,663.14 m2

Number of leasable units:

420 units

Area data

Average occupancy ratio during the FP:

Area data

Number of properties:

36 properties

Total leasable area:

166,829.56 m2

Number of leasable units:

3,742 units

As a result of leasing being conscious of most appropriate balance between occupancy and rent for respective property and residential
unit, the average occupancy ratio for the 22nd FP increased 0.8 points year-on-year
Greater Tokyo/Major Urban Areas
Major Cities Nationwide

Change in Occupancy Ratios by Investment Area
100%

97.5%

97.7%

97.7%

96.7%
95.9%

96.3%
95.5%
95%

Greater Tokyo / Other Urban Areas
Residences overall

96.4%

96.7%

96.7%
94.1%

96.7%

96.0%

97.2%

96.6%

96.2%

22

97.0%
96.3%

96.7%

94.6%

90%
Average occupancy
ratio during the 19th FP : 96.2%

85%
End of Sept. 2014(End of 18th FP)

End of Dec.

Average occupancy
ratio during the 20th FP : 95.5%

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

End of June

Average occupancy
ratio during the 21st FP : 96.3%

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

End of Dec.

Average occupancy
ratio during the 22nd FP : 96.3%

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

End of June

End of Sept. 2016(End of 22nd 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. Furthermore, “area data” shows figures for properties owned as of the end of the 22nd FP (ended September 30, 2016).

22

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

Rent Trends in Contract Renewals

18th FP

19th FP

20th FP

21st FP

22nd FP

No. of new contract

699

834

816

887

885

Total increase
in rent(number of cases)¥1,101
thousand(225)¥1,357thousand(314)¥1,744thousand(316)¥1,576thousand(327)¥1,472
thousand(327)

Total decrease
in rent(number of cases)-¥1,845thousand(244)-¥1,431
thousand(253)-¥1,326
thousand(228)-¥1,517thousand(277)-¥1,150thousand(213)

Change in rent (net)-¥744
thousand-¥73
thousand¥417
thousand¥59
thousand¥321
thousandRate of change in rent
against previous rent

-0.8%

-0.1%

0.4%

0.1%

0.3%

Decreased rent contract ratio

No rent change contract ratio

Increased rent contract ratio

100%

19th FP

20th FP

21st FP

22nd FP

No. of renew contract

972

1,136

1,013

1,406

1,135

Total increase
in rent¥20
thousand(6)¥224
thousand(77)¥130
thousand(54)¥62
thousand(31)¥91
thousand(29)-¥38
thousand(5)-¥2
thousand(1)-¥5
thousand(2)-¥7
thousand(2)-¥17
thousand(4)

Change in rent (net)-¥17
thousand¥222
thousand¥125
thousand¥55
thousand¥74
thousandRate of change in rent
against previous rent

-0.0%

0.2%

0.1%

0.0%

0.1%

(number of cases)

Total decrease
in rent(number of cases)

Decreased rent contract ratio

No rent change contract ratio

Increased rent contract ratio

100%
34.9%

30.3%

27.9%

31.2%

24.1%

75%

50%

18th FP

0.5%

0.1%

0.1%

0.2%

0.4%

75%
32.0%

33.3%

31.9%

39.0%

37.6%

38.7%

36.9%

36.9%

32.9%

25%
32.2%

50%

98.9%

20th FP

21st FP

22nd FP

Rent Trends in New Contracts by Investment Area
22nd FP

97.7%

97.1%

6.8%

5.3%

2.2%

2.6%

19th FP

20th FP

21st FP

22nd FP

0.6%
0%19th FP

94.5%

25%

0%
18th FP

93.1%

No. of new contracts

Change in rent (net)Rate of change in rent

Greater Tokyo /Major Urban Areas
Greater Tokyo /Other Urban Areas

575¥413 thousand

0.5%

51

-¥86 thousand

Major Cities Nationwide

259

Total

885

18th FP

Rent Trends in Contract Renewals by Investment Area
22nd FP

No. of renew contracts

Change in rent (net)Rate of change in rent

690

¥73 thousand

0.1%

-1.7%

Greater Tokyo /Major Urban Areas
Greater Tokyo /Other Urban Areas

60¥11 thousand

0.2%-¥5 thousand-0.0%

Major Cities Nationwide

385-¥10 thousand-0.0%¥321 thousand

0.3%

Total

1,135

¥74 thousand

0.1%

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 period for new or renewed contracts against the total of previous rent and both ratios are rounded to the firstdecimal place.

23

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

Based on residential properties owned as of the end of the 21st FP

End of FP ended March 2016(end of 21st FP)

End of FP ended September 2016(end of 22nd FP)

End of FP ended September 2016(end of 22nd FP)

Rate of change
in unit rent per tsubo

Period-end
occupancy ratio

Period-end unit
rent per tsubo

Period-end
occupancy ratio

Period-end unit
rent per tsubo(against end of 21st FP)

Period-end
occupancy ratio

Period-end unit
rent per tsubo

Greater Tokyo /Major Urban Areas

96.2%¥12,835

95.8%¥12,842

0.1%

95.9%

¥12,939

Greater Tokyo /Other Urban Areas

96.0%¥7,832

96.5%¥7,797

-0.4%

96.5%

¥7,797

Major Cities
Nationwide

96.0%¥7,312

95.4%¥7,318

0.1%

95.3%

¥7,351

Overall

96.1%¥10,536

95.7%¥10,540

0.0%

95.7%

¥10,601* 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 conclud edwith master lease companies for its calculation.

Changes in Key Money Acquisition Rate

Changes in Renewal Rate

100%

100%

Key money acquisition rate continuously secured
the 50% level

Continuously secured 80% level for renewal rate

50%

52.8%

54.7%

48.8%

56.6%

54.2%

18th FP

19th FP

20th FP

21st FP

22nd FP

85.2%

85.8%

82.8%

87.4%

86.2%

18th FP

19th FP

20th FP

21st FP

22nd FP50%

0%

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 the number 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.

24

Leasing Enhancement Activities
Implemented renovation work to realize residential space that match the needs of tenants
Property nameEsty Maison GINZA(property age:11.7 years)

Details of work

Construction cost

Exclusive area (1LDK: 46.76 m²)¥4.99 million• Floor plan change(outofwhich,¥4.57
million is capital expenditure)• Facility specification change, etc.

Contributed to leasing at monthly
rent (including common area fees)
13.6% higher than the previous rent

BeforeAfterCreated space by taking
away a wall in the kitchen
which had been giving a
sense of cramped andsmall, and turned it into
an open kitchen
Kitchen space

Changed into LDK withspacious style
Installed sliding doorsthat act as room dividers
in the bedroom tosecure its separation

Living/bed room

Installed a walk-in closet
to expand storage
space

Storage

Walk-in closet

25

Cost Reduction Activities
Construction for Replacement to LED Light Fixtures
Continuously implemented LED light fixture replacement work in the 22nd FP as an environmentally friendly measure in order to reduce
electricity use costs at common areas.
Period of
implementation

Property nameConstruction
cost

Expected amount ofannual decrease

18th FP to 21st FP

Prime Maison GINZA EASTand19 other properties¥63 million¥19.2 million
per year

22nd FP

Prime Maison ODORI KOENand
4 other properties¥13 million¥4.7 million
per year¥76 million¥23.9 million
per year

Total

25

(18th FP to 22nd FP)

properties

Progress at 22.7% of totalof 110 residential properties• Expected amount of decrease in electricity use costs,
etc. will be a total of ¥23.9 million per year as a resultof LED light fixture replacement work at common areas• All of the construction costs are capital expendituresand each period’s construction costs are expected tobe recovered in 3 to 4 years with the reduction ofelectricity use costs, etc.

Note: “Expected amount of annual decrease” through LED light fixture replacement work are figures calculated by the Asset Management Company based on proposal materials prepared by construction companies. There is no guarantee that therecovery of construction costs will be implemented as stated above.

Introduction of New Power Supply Companies
Changed power supply companies for some properties in order to reduce electricity use costs at common areas
RegionProperty name

Previous electricity
use costs

Electricity use costs
after change(estimate)

Reduction
rate

Expected amountof annual decrease

Properties in
TEPCO
area

Esty Maison
AZABUNAGASAKA
and
47 other properties¥35 million
per year¥32 million
per year

7.8%¥2.7 million
per year• No special cost burden with thechange in power supply companies

Properties in
KEPCO
area

Esty Maison KYOBASHIand
11 other properties¥15 million
per year¥14 million
per year

9.5%¥1.4 million
per year• Decrease in the electricity use
costs contribute directly to theimprovement of portfolio
profitability

Introduced at
54.5% of110 residential
properties in total¥50 million¥46 million

8.3%¥4.2 million
per year

Total

60
properties

Note: “Expected amount of annual decrease” through introduction of new power supply companies are figures calculated by the Asset Management Company based on proposal materials prepared by new power supply companies.

26

Asset Value Maintenance and Improvement Activities
New Establishment of Engineering Management Department
 Established a department specialized in developing long-term repair and maintenance plans as well as management, etc. of repair andmaintenance work for assets under management.
Number of large-scale repair work and changes in capital expenditure
General Meeting of
Shareholders

Number of properties on which large-scale repair work was implemented
Capital expenditure

Auditor

350.0

Board of Directors

5.0¥293 million

300.0
Investment Committee

Compliance Committee

200.0
150.0

President
Risk Management andCompliance Office

100.0
50.0

Real Estate
Investment
Department

Asset
Management
Department

Engineering
Management
Department

IR & Financial
Affairs
Department

3 properties

250.0

Compliance Officer¥302 million

2 properties

4.0
Currently intends to implement large-scale
repair work at around 3 to 5 properties per
3.0FP
2.0

¥97 million

Expect capital expenditure to bearound ¥300 to ¥500 million per FP

0 property

1.0

0.0

Management
Department

0.0
20th FP(actual)21st FP(actual)22nd FP(actual)23rd FP (Ending Mar. 2017) and Thereafter

Overview of Large-Scale Repair Work in the 22nd FP
 Implemented large-scale repair works at following 3 properties in the 22nd FP (Ended Sept. 2016) in a planned manner based on the
results of deterioration diagnosis surveys
Property nameEsty Maison EBISU II (Property age 13.4 years)¥58 million

Esty Maison KANDA (Property age 12.7 years)¥45 million

Esty Maison MACHIDA (Property age 12.7 years)¥75 million

Esty Maison EBISU II

Construction
Period(out of which, ¥173 million wascapital expenditure)

Repair and painting of exterior walls and hallway
walls of common areas, waterproofing work forbalcony, etc.

May 2016
toSept. 2016

Esty Maison KANDA

beforeRepair and painting of
exterior walls

Details of work

Repair work cost (excluding consumption tax)

Esty Maison MACHIDA

beforebeforeafter

Repair and painting of
exterior walls

after

Waterproofing work forrooftop

after
27

Memo

28

Prime Maison SHIROKANE-TAKANAWA

V. Financial Activities in and after the 22nd FP

プライムメゾン東桜
マスト博多
マスト博多

Major Initiatives in and after the 22nd FP (1)Results of Refinancing in August 2016
Before Refinancing
Loan term

Loan amount

11 months¥1.2 billion

Loan term
Approx.
9 years
Approx.
9 years¥6.0 billion

Approx.
8 months¥10.0 billion‒¥3.0 billion

Ratio of Fixed Interest Rates(End of 22nd FP)

Ratio of Long-Term Borrowings(End of 22nd FP)

90.6%

97.2%

Interest rate
Fixed

¥0.6 billion

Fixed¥1.9 billion

Fixed

Approx.
1 year

¥4.5 billion

Floating

Approx.
5 years
2 months¥10.0 billion‒

Floating

8 years
6 months

Loan amountRefinanced ¥5.5 billion which borrowing periods werelengthened and interest rates were fixed at the level below
average interest rate on procurement as of the end of 21st FP

Fixing¥2.8 billion

Interest rate

Lengthening

Approx.
1 year2 months

After Refinancing

Average interest rate on procurement for ¥5.5 billion: 0.56%

Implemented early repayment for ¥1.5 billion of this in
September 2016 by using proceeds from the disposition of btown MINAMIAOYAMAExpected amount of reduction in interest expenses in 23rd FP:

Approx. ¥1 million (Note)
Note: Figure calculated based on base rate as of the date of this document is indicated.

Average Borrowing Cost Rates during the FP and Average Remaining Period of Borrowing
(%)
1.50

Realized further reduction in average borrowing cost rates including borrowing related
expenses while maintaining average remaining period of borrowing(year)
Average borrowing cost rates during the FP (Notes 1 and 2) (left axis) 6.0

1.38%

Average remaining period of borrowing (Note 3) (right axis)
1.25%

1.20%
4.5 years

1.00

1.09%
3.1 years

3.2 years

FP endedMar. 31, 2013
(15th FP)FP ended
Sept. 30, 2013
(16th FP)Japan Credit Rating Agency, Ltd.
(JCR)

4.9 years
4.3 years

4.2 years

4.3 years
4.1 years
4.0

1.04%

1.02%

1.01%

0.50

2.0
FP ended
Sept. 30, 2014
(18th FP)FP endedMar. 31, 2015
(19th FP)FP ended
Sept. 30, 2015
(20th FP)FP endedMar. 31, 2016
(21st FP)AA- (Stable)
Rating and Investment Information, Inc.
(R&I)

0.95%

FP endedMar. 31, 2014
(17th FP)

Status of credit rating(as of date of document)

A+ (Stable)

FP ended
Sept. 30, 2016
(22nd FP)

Note 1: Average borrowing cost rate during the FP = Period borrowing cost (annualized) / Balance of period average interest-bearing debt; Borrowing cost = Interest expenses (excluding settlement money (break funding cost)) + Borrowing related
expenses + Interest expenses on investment corporation bonds
Note 2: Rounded to the second decimal place.
Note 3: The figures are the result of calculation based on the weighted average using the remaining period from each corresponding date to the repayment (redemption) dates of loans and investment corporation bonds, and their balances and rounded
down to the first decimal place.

30

Major Initiatives in and after the 22nd FP (2)Contract of Commitment Line
Secure flexible and stable means for procuring funds through contract of commitment line
Maximum
commitmentline amount¥10.0 billion

Date of contract

Term ofcommitment line

October 7, 2016

November 1, 2016
to
October 31, 2017

Counterparty

Use of Funds• Funds for new property acquisitions

Mizuho Bank, Ltd.

• Funds for refinancing(including redemption of investment corporation bonds)

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking Corporation• Funds for renovation/repair work of owned real estate

Maturity Ladder (as of the date of this document)
Intends to diversify repayment amount per FP by targeting about ¥10 billion, the maximum commitment line amount(million yen)
12,000Maximum
commitmentline amount

10,0008,000

10,000Long-term borrowings

Short-term borrowings

Investment corporation bonds

10,882

Refinanced into
short-term borrowings

9,900

9,500

2,500
Early repayment as of
Sept. 30, 2016

9,830

9,500

8,792
8,100
3,000

2,000

Lengthened borrowing
periods through refinancing

5,705
6,000

4,000

1,500

3,000

6,100
5,500

5,400
4,400

8,382

4,000

6,792

2,500

4,900
4,100

3,600
6,500

3,000

2,000
2,705
0

2,100

1,900

FP ended
FP ended
FP ended
FP ended
FP ended
FP ended
FP ended
FP ended
FP ended
FP ended
FP ended
FP ended
FP ended
FP ended
FP ended
FP ended
FP ended
FP ended
FP ended
Sept. 30, 2016 Mar. 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
(22nd FP)
(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)

31

Change in Major Financial Indicators Related to Interest-Bearing Debt
Overview of Interest-Bearing Debt
End of 21st FP (Mar. 31, 2016)

Balance

Average Interest
Rate onProcurement(Note 2)End of 22nd FP (Sept. 30, 2016)
Average Interest
Rate onProcurement(Note 2)

Balance

Short-term loans payable¥7,200 million

0.2%¥3,000 million

0.2%

Long-term loans payable (Note 3)¥82,009 million

0.9%¥91,209 million

0.9%

Investment corporation bonds¥14,500 million

0.8%¥14,500 million

0.8%

Total interest-bearing debt

Ratios of Floating and
Fixed Interest Rates (Note 4)

End of 21st FP
LTV based on total assets

0.8%¥108,709 million

0.8%
As of date of
document

End of 22nd FP

52.3%

Short-term
Floating

Fixed

9.4%

12.1%

90.6%

60%
87.9%

40%

As of date of document
Financial Institution

Outstanding Balance

Mizuho Bank, Ltd.

¥17,001 million

1.4％

long-term borrowings scheduled to be
repaid within 1 year

2.8%

6.9%

(11.2%)(11.9%)

80%

97.2%

93.1%

60%
50%
End of 21st FP(Mar. 31, 2016)

Share
18.0%

100%

70%

20%
0%

Long-term

90%

80%

53.5% 51.0% (estimate)

Loans Payable Outstanding Balance by Financial Institution

Maintain stable ratio of
long-term borrowings

Maintain stable ratio ofborrowings with fixed interest

100%¥103,709 million

Ratios of Short-Term andLong-Term Borrowings (Note 4)

1.4％

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

1.4％

1.4％

1.4％

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

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

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation¥16,741 million

17.8%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥10,750 million

11.4%

1.7％

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Mizuho Trust & Banking Co., Ltd.

¥8,030 million

8.5%

2.3％

Mizuho Trust & Banking Co., Ltd.

Sumitomo Mitsui Trust Bank, Limited¥6,850 million

7.3%

2.5％

Mitsubishi UFJ Trust and Banking Corporation¥6,592 million

7.0%

Development Bank of Japan Inc.

¥6,241 million

6.6%

The Norinchukin Bank

¥4,752 million

5.0%

Resona Bank, Limited.

¥4,550 million

4.8%

The Bank of Fukuoka, Ltd.

¥2,400 million

2.5%

Aozora Bank, Ltd.

¥2,200 million

2.3%

Shinkin Central Bank

¥1,600 million

1.7%

The Senshu Ikeda Bank, Ltd.

¥1,300 million

1.4%

The Shizuoka Bank, Ltd.

¥1,300 million

1.4%

The 77 Bank. Ltd.

¥1,300 million

1.4%

The Hiroshima Bank, Ltd.

¥1,300 million

1.4%

The Yamaguchi Bank, Ltd.

¥1,300 million

1.4%¥94,209million

100.0%

Sumitomo Mitsui Trust Bank, Limited

18.0％

Mitsubishi UFJ Trust and Banking Corporation

4.8％

Development Bank of Japan Inc.

5.0％

The Norinchukin Bank
Resona Bank, Limited.

17.8％

6.6％

The Bank of Fukuoka, Ltd.
Aozora Bank, Ltd.
Shinkin Central Bank

7.0％

The Senshu Ikeda Bank, Ltd.

11.4％

7.3％
8.5％

The Shizuoka Bank, Ltd.
The 77 Bank. Ltd.
The Hiroshima Bank, Ltd.
The Yamaguchi Bank, Ltd.

Total debt

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 is the weighted average of applied interest rates as of March 31, 2016 or September 30, 2016 based on the balances of the debts, and the figures are rounded to the first decimal place.
Note 3: Includes current portion (due within one year) of long-term loans payable.
Note 4: Ratio against the total interest-bearing debt.

32

Prime Maison ICHIGAYAYAMABUSHICHO

VI. CSR and Environmental Activities

プライムメゾン東桜
マスト博多
マスト博多

Examples of Initiatives in CSR and Environmental Activities
LED light fixture replacement work in common areas

Energy-saving conversion of air conditioners in exclusive areas

Newly implemented at 5 properties in the 22nd FP (ended Sept. 2016)(Implemented at a total of 25 properties as of the end of Sept. 2016)

Newly implemented at 140 units in the 22nd FP (ended Sept. 2016)(Implemented at a total of 393 units as of the end of Sept. 2016)
 Comparison of air conditioners with “2 stars” energy efficiency and those with “4stars” energy efficiency

Electricity consumption (total of 25 properties) :Expected annual decrease of approx. 912,793 kwh

Electricity consumption:
Expected annual reduction of approx. 13%

Greenhouse gas emissions (total of 25 properties) :Expected annual decrease of approx. 474 ton

Greenhouse gas emissions:
Expected annual reduction of approx. 112kg*Estimated by Asset Management Company based on materials
proposed by replacement work operator*Estimated by Asset Management Company based on materials released by Agency for Natural Resources and Energy,
Ministry of Economy, Trade and Industry

Aiming the decrease in electricity
consumption at common areas and ofgreenhouse gas (CO2) emissions
Management that considers
the environment and society
Number of certified properties totals 5 as of the date ofthis document

Provision of high-quality
residences

Acquired superior “Green Star” rating in the 2016 GRESB
sustainability survey for the second consecutive year, and wasselected as “Sector Leader” (ranked first) in Asia’s Residential Sector.
In addition, achieved “4 Stars” (highest being “5 Stars”) in GRESB Rating
introduced from 2016

Certification rank

Prime Maison
GOTENYAMA EAST

Prime Maison
SHINAGAWA(4 stars)
Certification rank

(3 stars)Aiming the reduction in electricity
consumption and greenhouse gas (CO2)emissions at exclusive areas

Prime Maison
YOKOHAMANIHON-ODORICertification rank

Prime Maison
GINZA EAST

Acquisition of DBJ Green Building Certification(2 stars)

Esty Maison
OJIMA

The Global Real Estate Sustainability Benchmark (GRESB) is a benchmark
system for evaluating sustainability performance in the real estate sector
established primarily by major European pension fund groups for the purpose ofenhancing shareholder value by applying environmental, social and governance(ESG) considerations to real estate investment.
Continued participation in GRESB sustainability survey
34Prime Maison YOKOHAMA NIHON-ODORIVII. Forecasts for the 23rd FP and 24th FP

プライムメゾン東桜
マスト博多
マスト博多

Forecasts for the 23rd FP
Increase of 1.6% from result for the 22nd FP

Forecast cash distribution
for the 23rd FP

Despite the absence of gain on sales recorded in the 22nd FP, cash distribution is expected to increase fromthe 22nd FP due to the increase in rent business income of the properties acquired through public offering inthe 23rd FP, reduction of asset management fees, etc.

¥2,180 per unit
Comparison with Forecasts

Results for the 22nd FP
ended September 30, 2016(183 days)(actual)Forecast for the 23rd FP
ending March 31, 2017(182 days)

Operating revenue¥6,693 million¥6,857 million¥164 million

2.5%

Operating income¥2,739 million¥2,975 million¥235 million

8.6%

Ordinary income¥2,193 million¥2,412 million¥218 million

10.0%

Net income¥2,192 million¥2,410 million¥217 million

9.9%

Provision for reserve for
reduction entry¥8 million‒-¥8 million-100%

Cash distributions per unit

¥2,145¥2,180¥35

1.6%◇Factors for change between the 23rd FP forecasts andthe 22nd FP results

Change・ Operating income
Operating revenue
Increase in rent revenue: +¥176 million
Increase in other rent business revenue:+¥6 million
Decrease in gain on sales of real estate properties :-¥18 million

Operating expense
Increase in expenses related to rent business
Decrease in other business expenses::+¥61 million-¥132 million::-¥0 million+¥16 million

・ Ordinary income
Decrease in non-operating revenue
Increase in non-operating expenses[Assumptions of forecast for the 23rd FP ending Mar. 31, 2017]◆ Assets under management: 113 properties owned as of the date of this document◆ Average occupancy ratio for the FP: Residence 96.0%, Other real estate in trust (retail properties) 100%, Entire Portfolio 96.2%◆ Administration service fees: Approx. ¥651 million◆ Fixed asset taxes, etc. that will be recorded as expenses related to rent business: Approx. ¥376 million◆ Depreciation: Approx. ¥1,605 million◆ Interest expenses, borrowing related expenses, etc.: Approx. ¥533 million◆ Amortization of investment unit issuance costs and investment corporation bond issuance costs: Approx. ¥29 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 November 15, 2016. Actual operating revenue, operating income, ordinary income, net income and cash distributions 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 distributions.

36Analysis of Change in Forecast Cash Distributions for the 23rd FP
Fiscal Period ending March 2017 (the 23rd FP): October 1, 2016 to March 31, 2017 (182 days)
Changes in generaladministration expenses, nonoperating income/expenses, etc.

Net income forthe 23rd FP

Changes in rent businessincome/expenses
Changes ingain/loss on sales
Absence of gain of
Finalized figures for sales
from disposition of
the 22nd FP
a property (b-town
MINAMIAOYAMA) inthe 22nd FP
Net income for-¥18 million
the 22nd FP¥2,192 million
Reserve for
reduction entry(internal reserve)

Out of which¥8 million wasinternally reserved in
the 22nd FP.

¥2,410 million

Increase in rent
business income
from properties
acquired throughthe public offeringsin the 23rd FP

Increase in nonoperating expenses,
etc.
-¥17 million+¥139 million
Decrease in rent
business income
from disposition of
b-townMINAMIAOYAMA-¥16 million-¥8 million

Current forecast forthe 23rd FP

Decrease in rent
business income
from properties
owned as of theend of the 22nd FP-¥1 million

Decrease in otherbusiness expenses+¥132 million
Out of which, thedecreased amount ofasset management fees,
etc.
+¥125 million

Resource for cash
distribution

Resource for cash distribution is expected to increase ¥226 million (+10.4%)¥2,183 million

Number ofinvestment units
issued

1,018,110 units

Actual cash
distribution per unit

¥2,145

Resource for cash
distribution¥2,410 million

Number of investment units issued increased 87,400 units (+8.6%) due to the
public offering in the 23rd FP

Cash distribution per unit is expected to increase ¥35 (+1.6%)

Number ofinvestment units
issued1,105,510 units

Forecast cash
distribution per unit

¥2,18037Forecasts for the 24th FP
Decrease of 0.5% from forecast for the 23rd FP

Forecast cash distribution
for the 24th FP

Cash distribution is expected to remain at the same level as the 23rd FP due to the full-year contribution from
2 properties acquired through the public offering in the 23rd FP, despite expensing of fixed asset tax, etc. of 8
properties acquired in 2016

¥2,170 per unit
Comparison with Forecasts◇Factors for change between the 24th FP forecasts andForecast for the 23rd FP
ending March 31, 2017(182 days)

Forecast for the 24th FP
ending September 30, 2017(183 days)

Operating revenue¥6,857 million¥6,845 million-¥12 million-0.2%

Operating income¥2,975 million¥2,948 million-¥26 million-0.9%

Ordinary income¥2,412 million¥2,401 million-¥10 million-0.4%

Net income¥2,410 million¥2,399 million-¥10 million

-0.4%

‒

‒

‒

‒

¥2,180¥2,170

-¥10

-0.5%

Provision for reserve for
reduction entry
Cash distributions per unit

the 23rd FP forecasts

Change・ Operating income
Operating revenue
Increase in rent revenue
Decrease in other rent business revenue::+¥4 million-¥17 million::+¥9 million+¥5 million:-¥15 million

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

・ Ordinary income
Decrease in non-operating expenses[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 95.9%, Other real estate in trust (retail properties) 100%, Entire Portfolio 96.0%◆ Administration service fees: Approx. ¥649 million◆ Fixed asset taxes, etc. that will be recorded as expenses related to rent business: Approx. ¥421 million◆ Depreciation: Approx. ¥1,605 million◆ Interest expenses, borrowing related expenses, etc.: Approx. ¥522 million◆ Amortization of investment unit issuance costs and investment corporation bond issuance costs: Approx. ¥24 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 November 15, 2016. Actual operating revenue, operating income, ordinary income, net income and cash distributions 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 distributions.

38

Analysis of Change in Forecast Cash Distributions for the 24th FP
Fiscal Period ending September 2017 (the 24th FP): April 1, 2017 to September 30, 2017 (183 days)
Current forecast forthe 23rd FP
Net income forthe 23rd FP¥2,410 million

Current forecast forthe 24th FP

Changes in rent businessincome/expenses

Increase in rent business income
Decrease in rent businessfrom full-year operation ofincome from properties owned as
properties acquired through theof the end of the 22nd FP
public offering in the 23rd FP-¥41 million+¥20 million

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

Increase inother business expenses

Decrease in
non-operating expenses, etc.

-¥5 million+¥15 million

Net income forthe 24th FP¥2,399 million

Amount for expensing of fixed asset tax, etc. of 8
properties acquired in 2016-¥44 million
8 properties acquired in 2016
Resource forcash distribution• PM YOKOHAMA NIHON-ODORI • EM UEMACHIDAI• Kobe Women’s Student Housing • EM KOBE-SANNOMIYAResource forcash distribution¥2,410 million• PM SHIBUYA• PM SHIROKANE-TAKANAWA¥2,399 million• PM HATSUDAI• PM ICHIGAYAYAMABUSHICHO

Number ofinvestment units
issuedNumber of investment units issued unchanged

Number ofinvestment units
issued1,105,510 units

1,105,510 units

Actual cash
distribution per unit

Forecast cash
distribution per unit

¥2,180Cash distribution per unit is expected to slightly decrease by ¥10 (-0.5%)¥2,170Although the forecast cash distribution for the 24th FP shows a slight decrease due mainly to expensing of fixed asset tax, etc. of
properties acquired in 2016, still aiming to increase the cash distribution level by utilizing the borrowing capacity of approximately 18
billion yen (estimate) generated from the public offering in the 23rd FP.
39

Residential Properties Planned, Developed or Owned by Sekisui House Group
Supply information

SponsorAssetmanagementcompany

Exchange of opinions

Sekisui House holds
property planningmeetings periodically0

Sekisui House

Sekisui House
SI Asset Management

Development Department

Real Estate Investment Department

Demand information

11 out of 12 properties are in Greater Tokyo / Major Urban Areas (all in Tokyo’s 23 wards)

Asset Management
Company participates
as an observer

Completed properties

Under construction (obtained verification of building construction)

Properties in theplanning stage

2 properties 284 units in total

5 properties 782 units in total

5 properties

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

4 properties
inTokyo’s
23 wards

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

inOsaka-shi(Tentative name)(Tentative name)(Tentative name)Prime Maison
OTSUKA

Prime Maison DAIKANYAMA

Prime Maison MITATSUNAMACHI(Minato-ku, Tokyo)

18 units

220 units

64 units(Toshima-ku, Tokyo)(Meguro-ku, Tokyo)<Completed in May 2016><Completed in Oct. 2016>144 units

27 units

An example of “MAST”
properties planned, developed
or owned in recognition of theirvalues by Sekiwa Real Estatecompanies (7 companies)

An example of“Prime Maison”
properties owned by
Sekisui House other than
the above
Prime Maison
GOTENYAMA WEST

Granmast KAYABA(Shinagawa-ku, Tokyo)(Nagoya-shi, Aichi)

26 units

27 units<Completed in Jan. 2011><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, images of “Prime Maison ASAKUSABASHI” and the properties that are “underconstruction” are renderings based on the design documents and may differ from the actual buildings.

40

(Reference) Growth Strategy in Phase III announced in May 2016
— Expecting 5 to 7 years of implementation period —External
growthstrategy

Sustained enhancement of the portfolio and financial basewith a focus on unitholder’s interests

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

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

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

Strategic
targetPromote the increase of unitholder’s value and aim tobecome the leading residential REITManagement
policyAim for an asset size of ¥300 billion while maintaining/increasing the cash distribution level41

Prime Maison EBISU

VIII. Appendix

プライムメゾン東桜
マスト博多
マスト博多

Balance Sheet (1)21st Fiscal Period(As of March 31, 2016)
Million yen

22nd Fiscal Period(As of September 30, 2016)

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
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
Trademark right
Other
Total intangible assets
Investments and other assets
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Investment unit issuance costs
Total deferred assets

Total assets

3,428
5,016
153
129
0
10
(4)
8,733

101,392(13,697)
87,694
878
(193)
684
1,926
(506)
1,420
207
(71)
136
98,617
188,553
148
0
0
148
242
367
138
748
189,45067
38
105
198,290

4.4

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

95.1

103,979(15,100)
88,879
900
(218)
682
1,972
(572)
1,400
263
(86)
177
101,70852
192,900

0.1

145
0
146

0.3
95.5

242
450
144
837
193,884

0.1
100.0

59
23
83
203,257

4.6

572
(8)
(40)
1
40
(0)
(10)
0
555

6.4

94.9

2,587
(1,403)
1,184
22
(24)
(2)
45
(65)
(19)
56
(15)
40
3,091
52
4,346

2.3

0.1

(2)
(0)
0
(2)

(1.5)

0.4
95.4

82
5
88
4,433

11.9
2.3

0.0
100.0

(7)
(14)
(22)
4,967

(20.9)
2.5

43

Balance Sheet (2)21st Fiscal Period(As of March 31, 2016)
Million yen

22nd Fiscal Period(As of September 30, 2016)

Percent of total

Million yen

ChangePercent of total

Million yen

Period on period (%)

Liabilities
Current liabilities
Operating accounts payable

336

412

75

Short-term loans payable

7,200

3,000

(4,200)Current portion of long-term loans payable

12,30012,205(95)

Accounts payable – other

638

601

(36)

Accrued expenses

54

55

1

Income taxes payable

3

1

(2)

Accrued consumption taxes

17

-

(17)

Advances received

237

236

(1)

Other

12

12

Total current liabilities

20,801

10.5

16,5260
8.1(4,275)(20.6)

Non-current liabilities
Investment corporation bond

14,50014,500-Long-term loans payable

69,70979,004

9,295

Tenant leasehold and security deposits in trust

2,016

Total non-current liabilities

86,22543.5

95,439

47.0

9,213

10.7

107,02654.0

111,965

55.1

4,938

4.6

88,92544.8

88,925

43.7

-

0.0

Total liabilities

1,934

(81)

Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Voluntary retained earnings
reserve for reduction entry

127

174

total voluntary retained earnings

127

174

47
47

Unappropriated retained earnings

2,210

2,192

(18)

Total surplus

2,338

1.2

2,366

1.2

28

1.2

Total unitholders’ equity

91,26346.0

91,292

44.9

28

0.0

91,26346.0

91,292

44.9

28

0.0

198,290100.0

203,257

100.0

4,967

2.5

Total net assets

Total liabilities and net assets

44

Statement of Income and Retained Earnings
21st Fiscal Period
22nd Fiscal Period(from October 1, 2015 to March 31, 2016) (from April 1, 2016 to September 30, 2016)
Million yen

Percent of total

Million yen

Percent of total

ChangeMillion yen

Period on period (%)

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

6,332

6,674

342

210

18

(191)

6,543

100.0

6,693

100.0

150

2.3

Operating expenses

Expenses related to rent business

3,065

3,218

152

Asset management fee

471

484

13

Asset custody fee

15

15

0

Administrative service fees

35

35

0

Directors’ compensations

3

3

-

Provision of allowance for doubtful accounts

3

0

(3)

Other operating expenses

205

Total operating expenses

3,801

58.1

3,953

59.1

152

4.0

2,741

41.9

2,739

40.9

(2)

(0.1)

Operating income

195

(10)

Non-operating income
Interest income

0

0

(0)

Reversal of distributions payable

0

0

(0)

Other

-

0

Total non-operating income

1

0.0

0

0

0.0

(0)

(52.8)

Non-operating expenses
Interest expenses

382

395

Interest expenses on investment corporation bonds

56

56

0

Amortization of investment corporation bond issuance costs

7

7

(0)

Borrowing related expenses

67

72

4

Amortization of investment unit issuance costs

14

14

0

Other

0

0

Total non-operating expenses

12

-

528

8.1

546

8.1

17

3.3

Ordinary Income

2,214

33.8

2,193

32.8

(20)

(0.9)

Income before income taxes

2,214

33.8

2,193

32.8

(20)

(0.9)

(2)

(66.8)

Income taxes – current

3

Income taxes – deferred(0)0(212.1)

Total income taxes

3

0.0

1

0.0

(2)

(59.7)

2,210

33.8

2,192

32.8

(18)

(0.8)

(0)

(100.0)

(18)

(0.8)

Net income
Retained earnings brought forward

0

Unappropriated retained earnings

2,210

1
0

33.8

2,192

32.8

45

Statements of Cash Flows / Cash Distributions
Statement of Cash Flows
21st Fiscal Period
from October 1, 2015
to March 31, 2016

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

Million yen

Million yen

Cash flows from operating activities

21st Fiscal Period
from October 1, 2015
to March 31, 2016

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

Million yen

Million yen

Cash flows from investing activities

Income before income taxes

2,214

2,193

Depreciation
Amortization of investment corporation bond issuancecosts
Amortization of investment unit issuance costs

1,468

1,582

7

7

14

14

Increase (decrease) in allowance for doubtful accounts

3(0)Interest income

(0)

(0)

Interest expenses

439

451

Decrease (increase) in operating accounts receivable

(21)

40

27

(23)

Decrease (increase) in consumption taxes receivable-(1)

Increase (decrease) in operating accounts payable

22

(2)

17

23

Decrease (increase) in prepaid expenses

Increase (decrease) in accounts payable – other
Increase (decrease) in consumption taxes payable(20)

Increase (decrease) in advances received
Decrease due to sale of property, plant and equipmentin trust
Decrease (increase) in long-term prepaid expenses(0)

Proceeds from tenant leasehold and security
deposits in trust

225

140

Repayments of tenant leasehold and security
deposits in trust

(456)

(221)

Decrease (increase) in investments and otherassets, net

(8)

(5)

(12,530)(7,498)Proceeds from short-term loans payable

7,200

4,500

Repayments of short-term loans payable(4,650)(8,700)

Proceeds from long-term loans payable

4,100

12,000

Repayments of long-term loans payable(3,550)(2,800)

Dividends paid

(2,160)(2,162)

939

2,837

Net cash used in investing activities
Cash flows from financing activities

(17)

(52)

(1)
1,502

8

(99)

(2)

11

12,3655,680

Net increase (decrease) in cash and cash equivalents

333

564

0

0

Cash and cash equivalents at the beginning of period

8,111

8,444

(440)

(449)

Cash and cash equivalents at the end of period

8,444

9,009

(1)

(3)

11,9245,226Interest income received
Interest expenses paid
Income taxes paid
Net cash provided by operating activities(7,411)-

Purchase of intangible assets

8,240

Other, net
Subtotal(12,290)

Purchase of property, plant and equipment in trust

Net cash provided by financing activities

Statement of Cash Distributions
21st Fiscal Period
from October 1, 2015
to March 31, 2016
Yen

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

I. Unappropriated retained earnings

2,210,581,192

2,192,416,724

II. Cash distributions[Cash distributions per unit]

2,163,483,750[2,125]2,183,845,950[2,145]47,097,442

8,570,774

00III. Voluntary retained earnings
Provision for reserve for reduction entry
IV. Retained earnings carried forward

46

Summary of Selected Financial Data
21st Fiscal Period
from October 1, 2015 toMarch 31, 2016
Business days

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

183 days

183 days

Total assets

198,290 million yen

203,257 million yen

Net assets

91,263 million yen

91,292 million yen

Unitholders’ capital

88,925 million yen

88,925 million yen

1,018,110 units

1,018,110 units

89,639 yen

89,668 yen

2,163 million yen

2,183 million yen

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

2,125 yen

2,145 yen

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

2.2%

2.2%

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

4.8%

4.8%

Unitholders’ equity ratio (Note 3)

46.0%

44.9%

108

111

368,622.60m2

376,936.98m2

97.2%

96.8%

1,468 million yen

1,582 million yen

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

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

293 million yen

302 million yen

Leasing Net Operating Income(NOI) (Note 4)

4,735 million yen

5,038 million yen

Note 3: Unitholders’ equity ratio = Period-end net assets / Period-end total assets

Funds from Operation (FFO) (Note 5)

3,468 million yen

3,756 million yen

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)

3,406 yen

3,689 yen

103,709 million yen

108,709 million yen

FFO per unit

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 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

Total interest-bearing debt

Interest-bearing debt = Borrowings + Investment corporation bonds

Loan to Value (LTV) (Note 6)

52.3%

53.5%

Note 7: Interest-bearing debt ratio = Period-end interest-bearing debt / (Period-end interest-bearing debt +Unitholders’ capital)

Interest-bearing debt ratio (Note 7)

53.8%

55.0%

Note 8: DSCR = (Net income + Repayment of interest-bearing debt + Interest expenses + Depreciation) /(Repayment of interest-bearing debt + Interest expenses)

9.4 times

9.4 times

Debt Service Coverage Ratio(DSCR) (Note 8)* Ratios are rounded to the nearest first decimal place.

47

History of the Investment Corporation since ListingManagement before change ofsponsor

Total
AcquisitionPrice(million yen)Management after change of sponsor

Assets acquired after change of sponsor
Assets acquired before change of sponsor

210,000
200,000
190,000

99
properties
171,099

180,000
170,000
160,000

July 28, 2005
Listed on the Tokyo
Stock Exchange

150,000

77
properties
128,794

140,000
130,000
120,000

53
properties
99,919110,000
100,000

53
properties
99,92053
properties
99,92053
properties
99,92057
properties
103,97458
properties
106,234

60
properties
101,00689
properties
141,472

107
properties
188,771110
properties
191,020108properties
193,890111
properties
199,163

113
properties
207,66395
properties
151,744

Trade namechange66
properties
110,21490,000

Apr. 1, 2014
Split ofInvestment Units

80,000Trade namechange70,00021
properties
47,51660,00050,000

Apr. 2, 2010
Third-party
allotment
10,400 units

40,00030,000Aug. 29, 2005
Third-party
allotment
2,000 units

20,000

Apr. 22, 2013
Publicoffering
21,430 units

Apr. 21, 2014
Public offering
111,600 units

Oct. 22, 2014
Public offering
97,970 units

Oct. 26, 2012
Third-party
allotment
1,540 units

May 23, 2013
Third-party
allotment
1,105 units

May 22, 2014
Third-party
allotment
5,615 units

Nov. 18, 2014
Third-party
allotment
4,900 units

Feb. 28, 2013
Investment
corporation
bonds¥6,000 million

10,000～～0Oct. 1, 2012
Public offering
20,460 units-10,000

Disposition of part of
HAMAMATSU Plaza, etc.
End of 8th FP

End of 9th FP

End of 10th FP

End of 11th FP

End of 12th FP

End of 13th FP

Feb. 28, 2014
Investment
corporationbonds¥5,500 million

Oct. 26, 2016
Public offering
83,240 units
Nov. 14, 2016
Third-party
allotment
4,160 units

Aug. 29, 2014
Investment
corporationbonds¥3,000 million

Disposition of
1 property
Disposition of
Hamamatsu Plaza East andthe former Ito-Yokado Building

Disposition of
1 property

Disposition of
Disposition ofpart of 1 property Disposition of part of 1 property
and 1 property
and 1 property
5 properties
End of 20th FP

End of 21st FP

End of 22nd FP As of date of

End of 18th FP

End of 19th FP¥68,294
million¥79,059
million¥88,925
million¥98,633
million

137,070
units

159,605
units

915,240
units

1,018,110
units

1,105,510
units¥59,503
million¥71,434
million¥75,975
million¥83,768
million¥92,459
million¥99,109
million¥100,609
million¥103,709
million¥108,709
million¥108,709
millionEnd of 14th FP End of 15th FP

End of 1st FP

End of 7th FP

Unitholders’ capital¥28,491
million¥48,704
million¥50,523
million¥57,755
millionNumber ofinvestment units

56,000units

104,670
units

115,070
units

Total interest-bearing ¥23,165
debt
million(Note 1)

¥51,639
million¥51,449
million¥51,208
million¥49,229
million¥51,874
million¥54,032
million¥58,073
millionEnd of 16th FP

End of 17th FP

document(Mar. 31, 2016) 2016.9期末(Sept. 30, 2016) this(Sept. 30, 2015) 2016.3期末(Mar. 31, 2015) 2015.9期末2006.3期末2009.3期末2009.9期末2010.3期末2010.9期末2014.9期末30, 2014) 2015.3期末
本書の(Mar. 31, 2014) (Sept.
(Sept. 30, 2013) 2014.3期末(Sept. 30, 2010) 2011.3期末(Mar. 31, 2011) 2011.9期末(Sept. 30, 2011) 2012.3期末(Mar. 31, 2012) 2012.9期末(Sept. 30, 2012) 2013.3期末
31, 2009) (Sept.
30, 2009) (Mar.
31, 2010)(Mar. 31, 2006) (Mar.
(Mar. 31, 2013) 2013.9期末（第1期末） （第7期末） （第8期末） （第9期末） （第10期末） （第11期末） （第12期末） （第13期末） （第14期末） （第15期末） （第16期末） （第17期末） （第18期末） （第19期末） （第20期末） （第21期末） （第22期末） 日付現在

LTV
(Note 2)

41.7%

49.3%

49.0%

48.9%

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％

-

Cash distribution
per unit(Note 3)

¥17,277（¥12,730）¥5,485¥10,262¥10,052¥8,160¥9,793¥10,045¥10,117¥10,351¥10,459¥10,537¥11,062¥2,131¥2,185¥2,122¥2,125¥2,145-Note 1:

Total interest-bearing debt = Borrowings + Investment corporation bonds + Interest-bearing tenant leasehold and security deposits

Note 2:

LTV = Period-end total interest-bearing debt / Period-end total assets

Note 3:The operating period for the first fiscal period was the 346 days between April 20, 2005 and March 31, 2006. The substantial management period was the 247 days between July 28, 2005 and March 31, 2006. In order to compare with the 7th fiscal period and the successive fiscal periods, the figure
calculated with the number of management days as 182 is indicated in parentheses. Furthermore, a split of investment units was executed on April 1, 2014.

48

Portfolio Development Policy
Investment target
Invests only in real estate-related assets that are mainly used (Note) as residences
Residences include student dorms, company housing and serviced housing for the elderly

Promote the establishment of that centers on high quality rental residential
properties planned and developed by the Sekisui House Group(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 investment area categories
outside Greater Tokyo and diversify investment

Greater Tokyo

Investment area category

Maximally utilize the nationwide network of the Sekisui House Group(1) Tokyo：

Tokyo 23 wards,
Musashino-shi, Mitaka-shi, and Koganei-shi(Focused investment area)(2) Kanagawa：

Yokohama-shi and
Kawasaki-shi

Greater Tokyo /Other Urban
Areas(1) Tokyo areas (except islands) and Kanagawa other than the above

Greater Tokyo / Major Urban
Areas

Allocation ratio (Note 3)(based on acquisition price)

Specific area

Approx. 70%(2) Chiba and Saitama

Major Cities
Nationwide

Approx. 30%
Major Urban Areas(1) Sapporo-shi, Sendai-shi, Nagoya-shi, Kyoto-shi, Osaka-shi, Kobe-shi, Hiroshima-shi
and Fukuoka-shi(2) Areas within commuting distance from (1) above (Note 1)

Other Major Cities Nationwide

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 andFukuoka-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 ordinance cities 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 properties owned as of the date of this document have been excluded from the calculation of the above allocation ratio.

Residence TypeWith 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’splanning and development meeting as an observer

Acquired 2 properties after public offering in 16th FP
Sekisui House has extensive performance in development

49

Portfolio Map (1)As of date of this document

Residence (property number)
Retail Property (property number)

Osaka-shi
Greater Tokyo / Major Urban Areas
Adachi-ku

Itabashi-ku
Kita-ku

Katsushika-ku

Nerima-ku
Arakawa-ku
Toshima-ku

Fukuoka-shi

Musashino-shi
Koganei-shi

Mitaka-shi

Nakano-ku

Suginami-ku

Taito-ku

Bunkyo-ku
Shinjuku-ku

Sumida-ku

Edogawa-ku

Chiyoda-ku
Shibuya-ku

Setagaya-ku

Chuo-ku

Koto-ku

Minato-ku

Meguro-ku

Kawasaki-shi

Shinagawa-ku

Ota-kuYokohama-shi

Greater Tokyo / Other Urban Areas
Nagoya-shi
Tokyo

Kanagawa

Portfolio Earthquake PML

2.40%（Entire portfolio）

Note: “Portfolio Earthquake PML” is as of the survey in September
2016 on assets owned at the end of the fiscal period ended
September 30, 2016 (end of 22nd fiscal period).

50

Portfolio Map (2)Greater Tokyo / Major Urban Areas

Greater Tokyo / Other Urban Areas
Residence

Residence

Residence

Major Cities Nationwide
Residence

Residence-1

Esty Maison GINZA

Residence-69

Esty Maison SENGOKU

Residence-11

Esty Maison MACHIDA

Residence-100 Prime Maison ODORI KOEN

Residence-3

Esty Maison AZABUNAGASAKA

Residence-70

Esty Maison DAIZAWA

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

Residence-101 Prime Maison MINAMI 2-JO

Residence-4

Esty Maison EBISU II

Residence-71

Esty Maison TOGOSHI

Residence-40

Esty Maison HACHIOJIMINAMINO

Residence-102 Prime Maison KAMOKAMOGAWA

Residence-5

Esty Maison EBISU

Residence-74

Esty Maison SHIROKANEDAI

Residence-50

Prime Maison MUSASHINONOMORI

Residence-103 Prime Maison CENTRAL PARK

Residence-6

Esty Maison KANDA

Residence-75

Esty Maison HIGASHISHINJUKUResidence-109 Esty Maison TSUTSUJIGAOKA

Residence-107 Granmast KANAZAWA NISHIIZUMIResidence-8

Esty Maison KITASHINJUKUResidence-76

Esty Maison MOTOAZABUResidence-111 MAST LIFE HINO

Residence-108 Granmast UNOMORI

Residence-10 Esty Maison ASAKUSAKOMAGATA

Residence-77

Esty Maison TORITSUDAIGAKU

Residence-12 Esty Maison KAWASAKI

Residence-78

Esty Maison MUSASHIKOYAMA II

Residence-14 Esty Maison SHINKAWASAKI

Residence-79

Esty Maison NAKANO

Residence-15 Esty Maison YOKOHAMA

Residence-80

Esty Maison SHINNAKANO

Residence-16 Esty Maison KAMEIDO

Residence-81

Esty Maison NAKANOFUJIMICHO

Residence-17 Esty Maison MEGURO

Residence-82

Esty Maison TETSUGAKUDO

Residence-19 Esty Maison SUGAMO

Residence-83

Esty Maison KOENJI

Residence-21 Esty Maison MEGUROHONCHO

Residence-84

Esty Maison OSHIAGE

Residence-22 Esty Maison HAKURAKU

Residence-85

Esty Maison AKABANE

Residence-24 Esty Maison GOTANDA

Residence-86

Esty Maison OJI

Residence-25 Esty Maison OISENDAIZAKA

Residence-87

Prime Maison WASEDA

Residence-26 Esty Maison SHINAGAWA SEASIDE

Residence-88

Prime Maison HATCHOBORIResidence-27 Esty Maison MINAMIAZABUResidence-30 Esty Maison KAWASAKI II
Residence-31 Esty Maison AZABUJUBAN
Residence-33 Esty Maison ITABASHIHONCHO
Residence-34 Esty Maison OIZUMIGAKUEN

Residence-89
Residence-90
Residence-91
Residence-94
Residence-95

Prime Maison JINBOCHO
Prime Maison GOTENYAMA EAST
MAST LIFE AKIHABARA
Esty Maison KINSHICHO II
Esty Maison OJIMA

Residence-39 Esty Maison HIGASHISHINAGAWA

Residence-98

Prime Maison MORISHITA

Residence-42 Esty Maison ITABASHIKUYAKUSHOMAE

Residence-99

Prime Maison SHINAGAWA

Residence-43 Esty Maison MUSASHIKOYAMA

Residence-104 MAST LIFE YAHIRO

Residence-44 Esty Maison SENDAGIResidence-45 Esty Maison YOTSUYASAKAMACHI
Residence-48 Esty Maison SANGENJAYAResidence-53 Esty Maison SANGENJAYA IIResidence-54 Esty Maison ITABASHI C6Residence-56 Esty Maison KINSHICHO
Residence-57 Esty Maison MUSASHIKOGANEIResidence-62 Esty Maison AKIHABARA
Residence-63 Esty Maison SASAZUKA
Residence-64 Prime Maison GINZA EAST

Residence-105 Prime Maison EBISU
Residence-106 Esty Maison SHIBAURA
Residence-110 Esty Maison KOHOKU TSUNASHIMA
Residence-112 Prime Maison YOKOHAMA NIHON-ODORIResidence-114 Prime Maison SHIBUYAResidence-115 Prime Maison HATSUDAI

Major Cities Nationwide

Residence-113 KOBE Women’s Student Housing
Residence-116 Esty Maison UEMACHIDAIResidence

Residence-117 Esty Maison KOBE-SANNOMIYA

Residence-20

Esty Maison KYOBASHI

Residence-23

Esty Maison MINAMIHORIE

Residence-28

Esty Maison JOTO

Residence-29

Esty Maison TSUKAMOTO

Residence-35

Esty Maison TENJINHIGASHI I

Residence-36

Esty Maison TENJINHIGASHI II

Residence

Residence-37

Esty Maison SHIJONISHINOTOIN

Residence-118 Prime Maison SHIROKANE-TAKANAWA

Residence-41

Esty Maison NISHINAKAJIMA

Residence-119 Prime Maison ICHIGAYAYAMABUSHICHO

Residence-46

Esty Maison HAKATAHIGASHI

Residence-47

Esty Maison KAMIGOFUKUResidence-51

Prime Maison HIGASHISAKURA

Residence-52

Prime Maison KAYABAKOEN

Residence-55

MAST HAKATA

Residence-58

Prime Maison GOKISO

Residence-59

Prime Maison YUHIGAOKA

Residence-60

Prime Maison KITATANABE

Residence-61

Prime Maison MOMOCHIHAMAResidence-65

Prime Maison TAKAMI

Residence-66

Prime Maison YADAMINAMI

Residence-67

Prime Maison TERIHA

Residence-68

Esty Maison HIGASHISHIRAKABE

Residence-72

Esty Maison KAWARAMACHI

Residence-73

Esty Maison NISHITENMA

Residence-92

Esty Maison AOIResidence-93

Esty Maison YAKUIN

Residence-96

Prime Maison FUJIMIDAI

Residence-97

Esty Maison TSURUMAI

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

HAMAMATSU Plaza

Properties acquired as ofNovember 1, 2016

51

List of Properties Owned at End of Period (1)Acquisition Price
Property No.

Property Name

Location

Site Area(m2)

Total Floor
Area
(m2)

Price
(Million yen)

Estimated
Value at
End ofPeriod(Million yen)

Ratio
(%)

Occupancy Ratio (%)
As of Ｍａｒ. 31, As of Sept. 30,
2016
2016

Completion Date

Residence- 1

Esty Maison GINZA

Ginza, Chuo-ku, Tokyo

636.36

7,836.57

5,290

2.7

6,130

95.2

97.7 February 7, 2005

Residence- 3

Esty Maison AZABUNAGASAKA

Roppongi, Minato-ku, Tokyo

677.452,317.87

1,730

0.9

1,690

91.4

88.4 January 16, 2004

Residence- 4

Esty Maison EBISU II

Higashi, Shibuya-ku, Tokyo

561.582,452.69

1,960

1.0

1,920

97.8

91.8 June 13, 2003

Residence- 5

Esty Maison EBISU

Hiroo, Shibuya-ku, Tokyo

169.00871.90

700

0.4

815

93.5

96.1 October 20, 2004

Residence- 6

Esty Maison KANDA

Kandata-cho, Chiyoda-ku, Tokyo

307.692,028.19

1,360

0.7

1,500

98.7

96.0 February 20, 2004

Residence- 8

Esty Maison KITASHINJUKU

Kita-shinjuku, Shinjuku-ku, Tokyo

504.412,204.07

1,290

0.6

1,500

97.4

94.0 August 6, 2004

Residence-10

Esty Maison ASAKUSAKOMAGATA

Komagata, Taito-ku, Tokyo

663.54

3,406.10

1,870

0.9

2,040

96.4

100.0 July 28, 2004

Residence-11

Esty Maison MACHIDA

Hara-machida, Machida-shi, Tokyo

587.484,033.59

1,360

0.7

1,510

96.4

90.8 February 23, 2004

Residence-12

Esty Maison KAWASAKI

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

683.694,656.10

2,130

1.1

2,350

99.3

94.5 July 15, 2004

Residence-14

Esty Maison SHINKAWASAKI

Furuichiba, Saiwai-ku, Kawasaki-shi, Kanagawa

1,992.09

3,737.47

1,018

0.5

1,210

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

2,040

100.0

100.0 January 23, 2007

Residence-16

Esty Maison KAMEIDO

Kameido, Koto-ku, Tokyo

438.432,899.67

1,650

0.8

1,520

95.9

98.9 November 30, 2005

Residence-17

Esty Maison MEGURO

Mita, Meguro-ku, Tokyo

578.01

1,283.92

887

0.4

1,030

97.5

92.5 November 28, 2005

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

Midorigaoka, Yachiyo-shi, Chiba

1,289.14

5,420.53

1,348

0.7

1,180

96.9

98.4 January 10, 1998

Residence-19

Esty Maison SUGAMO

Sugamo, Toshima-ku, Tokyo

965.702,785.83

1,510

0.8

1,580

100.0

100.0 February 22, 2007

Residence-20

Esty Maison KYOBASHI

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

799.685,995.82

2,774

1.4

2,880

96.1

96.7 March 2, 2006

Residence-21

Esty Maison MEGUROHONCHO

Megurohoncho, Meguro-ku, Tokyo

865.22

1,975.84

1,220

0.6

1,100

93.4

93.0 February 22, 2006

Residence-22

Esty Maison HAKURAKU

Rokkakubashi, Kanagawa-ku, Yokohama-shi, Kanagawa

457.54

1,593.68

844

0.4

898

98.3

96.5 February 2, 2006

Residence-23

Esty Maison MINAMIHORIE

Minamihorie, Nishi-ku, Osaka-shi, Osaka

475.06

1,994.14

1,055

0.5

1,010

100.0

92.1 February 19, 2007

Residence-24

Esty Maison GOTANDA (Note 5)

Nishi-gotanda, Shinagawa-ku, Tokyo

593.325,590.34

3,043

1.5

2,960

93.5

98.6 March 2, 2006

Residence-25

Esty Maison OISENDAIZAKA

Higashi-oi, Shinagawa-ku, Tokyo

558.393,440.73

2,440

1.2

2,590

98.7

100.0 August 10, 2006

Residence-26

Esty Maison SHINAGAWA SEASIDE

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,049.00

3,127.48

2,200

1.1

1,980

95.3

97.3 June 23, 2006

Residence-27

Esty Maison MINAMIAZABUMinamiazabu, Minato-ku, Tokyo

487.27

1,479.61

1,300

0.7

1,190

98.1

100.0 August 23, 2006

Residence-28

Esty Maison JOTO

Noe, Joto-ku, Osaka-shi, Osaka

740.492,232.26

1,075

0.5

949

97.0

95.5 August 31, 2006

Residence-29

Esty Maison TSUKAMOTO

Tsukamoto, Yodogawa-ku, Osaka-shi, Osaka

808.542,565.66

1,250

0.6

1,050

97.9

90.6 August 10, 2006

Residence-30

Esty Maison KAWASAKI II

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

601.383,193.14

1,900

1.0

1,920

97.7

96.1 February 27, 2007

Residence-31

Esty Maison AZABUJUBAN

Azabujuban, Minato-ku, Tokyo

380.26

2,097.45

2,700

1.4

2,630

96.8

91.4 February 22, 2007

Residence-33

Esty Maison ITABASHIHONCHO

Yamato-cho, Itabashi-ku, Tokyo

220.85

1,446.78

1,000

0.5

927

95.4

98.4 February 27, 2007

Residence-34

Esty Maison OIZUMIGAKUEN

Higashi-Oizumi, Nerima-ku, Tokyo

618.001,542.16

871

0.4

778

98.3

96.6 February 22, 2007

Residence-35

Esty Maison TENJINHIGASHI I

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

239.18

1,158.70

445

0.2

352

100.0

97.8 January 31, 2007

Residence-36

Esty Maison TENJINHIGASHI II

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

514.892,108.69

840

0.4

714

100.0

97.6 May 23, 2007

Residence-37

Esty Maison SHIJONISHINOTOIN

Myodenji-cho, Shijo-sagaru, Nishinotoin-dori, Shimogyoku, Kyoto-shi, Kyoto

400.593,374.74

1,420

0.7

1,190

92.0

92.9 April 8, 2008

Residence-39

Esty Maison HIGASHISHINAGAWA

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,028.92

3,338.12

2,610

1.3

2,310

88.1

94.8 May 23, 2008

Residence-40

Esty Maison HACHIOJIMINAMINO

Nishikatakura, Hachioji-shi, Tokyo

1,134.50

2,243.06

1,000

0.5

875

96.5

94.2 March 6, 2007

52

List of Properties Owned at End of Period (2)Acquisition Price
Location

Site Area(m2)

Total Floor
Area
(m2)

Price
(Million yen)

Estimated
Value at
End ofPeriod(Million yen)Occupancy Ratio (%)

Property No.

Property Name

Residence-41

Esty Maison NISHINAKAJIMA

Higashinakajima, Higashiyodogawa-ku, Osaka-shi, Osaka

969.02

3,947.24

2,250

1.1

1,900

93.2

96.4 April 18, 2007

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

Itabashi, Itabashi-ku, Tokyo

731.71

4,322.19

2,700

1.4

2,490

96.8

93.5 April 22, 2007

Residence-43

Esty Maison MUSASHIKOYAMA (Note 5)

Ebara, Shinagawa-ku, Tokyo

512.62

1,616.87

1,012

0.5

1,020

96.4

95.6 November 5, 2007

Residence-44

Esty Maison SENDAGI (Note 5)

Sendagi, Bunkyo-ku, Tokyo

250.44

1,239.10

757

0.4

683

93.1

100.0 January 9, 2008

Residence-45

Esty Maison YOTSUYASAKAMACHI (Note 5)

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

Ratio
(%)

As of Ｍａｒ. 31, As of Sept. 30,
2016
2016

Completion Date

905.083,675.01

2,300

1.2

2,050

95.3

97.0 March 29, 2008

4,590.91

9,465.09

2,250

1.1

2,400

95.6

97.1 November 21, 2007

Kamigofukumachi, Hakata-ku, Fukuoka-shi, Fukuoka

593.552,523.71

900

0.5

803

98.5

100.0 March 14, 2008

Sangenjaya, Setagaya-ku, Tokyo

153.83954.94

871

0.4

860

100.0

100.0 January 22, 2008

Prime Maison MUSASHINONOMORI

Josuihoncho, Kodaira-shi, Tokyo

5,116.62

4,412.42

1,560

0.8

1,780

96.2

96.5 December 19, 2007

Prime Maison HIGASHISAKURA

Higashisakura, Higashi-ku, Nagoya-shi, Aichi

846.053,517.62

1,140

0.6

1,470

96.3

88.0 February 15, 2008

Residence-52

Prime Maison KAYABAKOEN

Kayaba, Chikusa-ku, Nagoya-shi, Aichi

1,129.02

2,301.42

640

0.3

797

96.1

96.5 November 7, 2006

Residence-53

Esty Maison SANGENJAYA II

Shimouma, Setagaya-ku, Tokyo

473.85

1,006.89

714

0.4

827

97.0

100.0 January 28, 2008

Residence-54

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

773.485,249.34

2,260

1.1

2,540

96.6

93.8 March 12, 2008

Residence-55

MAST HAKATA (Note 6)

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

2,457.01

11,621.67

1,920

1.0

2,440

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

1,250

100.0

100.0 September 6, 2006

Residence-57

Esty Maison MUSASHIKOGANEI

Honcho, Koganei-shi, Tokyo

520.252,676.36

1,450

0.7

1,700

96.1

97.1 February 2, 2005

Residence-58

Prime Maison GOKISO

Ayuchitori, Showa-ku, Nagoya-shi, Aichi

1,429.67

4,691.72

1,640

0.8

1,880

96.7

98.4 October 28, 2008

Residence-59

Prime Maison YUHIGAOKA

Ueshio, Tennoji-ku, Osaka-shi, Osaka

547.152,336.49

810

0.4

917

100.0

88.7 February 16, 2007

Residence-60

Prime Maison KITATANABE

Kitatanabe, Higashisumiyoshi-ku, Osaka-shi, Osaka

640.92

2,112.46

540

0.3

594

95.5

88.5 June 13, 2006

Residence-61

Prime Maison MOMOCHIHAMA

Momochihama, Sawara-ku Fukuoka-shi, Fukuoka

4,069.42

8,945.61

1,810

0.9

1,990

100.0

100.0 February 29, 1996

Residence-62

Esty Maison AKIHABARA

Ueno, Taito-ku, Tokyo

458.322,821.47

1,560

0.8

1,930

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

3,200

96.3

97.6 September 7, 2004

Residence-64

Prime Maison GINZA EAST

Tsukiji, Chuo-ku, Tokyo

969.108,724.48

5,205

2.6

5,990

95.1

94.8 February 28, 2006

Residence-65

Prime Maison TAKAMI

Takami, Chikusa-ku, Nagoya-shi, Aichi

1,129.17

2,354.34

905

0.5

1,010

89.4

96.1 August 27, 2008

Residence-66

Prime Maison YADAMINAMI

Yadaminami, Higashi-ku, Nagoya-shi, Aichi

1,148.53

2,430.23

715

0.4

799

100.0

100.0 July 18, 2007

Residence-67

Prime Maison TERIHA

Kashiiteriha, Higashi-ku, Fukuoka-shi, Fukuoka

4,130.59

7,953.60

1,110

0.6

1,280

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

1,530

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

1,300

98.4

97.0 August 6, 2009

Residence-70

Esty Maison DAIZAWA

Daizawa, Setagaya-ku, Tokyo

1,901.36

2,948.98

1,870

0.9

2,170

92.1

97.6 February 18, 2010

Residence-71

Esty Maison TOGOSHI

Togoshi, Shinagawa-ku, Tokyo

679.82

2,545.90

1,370

0.7

1,660

98.9

97.9 June 25, 2009

Residence-72

Esty Maison KAWARAMACHI

Kawaramachi, Chuo-ku, Osaka-shi, Osaka

655.894,580.48

1,640

0.8

1,860

94.9

96.3 October 17, 2006

53

List of Properties Owned at End of Period (3)Acquisition Price
Property No.

Property Name

Location

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 7)

Shinjuku, Shinjuku-ku, Tokyo

Residence-76

Esty Maison MOTOAZABUResidence-77

Esty Maison TORITSUDAIGAKU

Residence-78
Residence-79

Site Area(m2)

Total Floor
Area
(m2)

Price
(Million yen)

Estimated
Value at
End ofPeriod(Million yen)

Ratio
(%)

Occupancy Ratio (%)
As of Ｍａｒ. 31, As of Sept. 30,
2016
2016

Completion Date

519.65

4,514.05

1,440

0.7

1,630

95.8

96.3 November 30, 2007

1,279.67

2,797.66

1,900

1.0

2,250

100.0

94.1 September 16, 2003

679.192,227.87

1,363

0.7

1,550

100.0

87.9 April 17, 2009

Motoazabu, Minato-ku, Tokyo

755.991,699.44

1,170

0.6

1,460

100.0

84.2 November 9, 2009

Tairamachi, Meguro-ku, Tokyo

766.84

1,399.75

729

0.4

816

96.0

94.3 February 23, 2009

Esty Maison MUSASHIKOYAMA II

Koyama, Shinagawa-ku, Tokyo

609.81

1,436.58

844

0.4

999

97.8

97.3 May 25, 2009

Esty Maison NAKANO

Chuo, Nakano-ku, Tokyo

687.472,608.04

1,540

0.8

1,800

98.9

95.3 June 24, 2009

1,508.07

847

0.4

972

91.9

100.0 October 22, 2009

Residence-80

Esty Maison SHINNAKANO

Honcho, Nakano-ku, Tokyo

747.64

Residence-81

Esty Maison NAKANOFUJIMICHO

Yayoicho, Nakano-ku, Tokyo

907.66

1,531.56

863

0.4

946

87.0

95.5 February 16, 2009

Residence-82

Esty Maison TETSUGAKUDO

Matsugaoka, Nakano-ku, Tokyo

686.93

1,858.00

954

0.5

1,110

100.0

85.7 October 21, 2009

Residence-83

Esty Maison KOENJI

Koenjiminami, Suginami-ku, Tokyo

1,100.15

1,977.24

958

0.5

1,100

95.4

95.8 March 10, 2009

Residence-84

Esty Maison OSHIAGE

Narihira, Sumida-ku, Tokyo

1,134.70

4,344.84

1,950

1.0

2,340

96.8

99.1 April 23, 2010

Residence-85

Esty Maison AKABANE

Akabane, Kita-ku, Tokyo

1,157.02

5,675.18

2,730

1.4

3,140

91.0

86.2 November 25, 2009

Residence-86

Esty Maison OJI

Oji, Kita-ku, Tokyo

518.872,939.76

1,380

0.7

1,590

96.5

97.7 July 6, 2010

Residence-87

Prime Maison WASEDA

Waseda Tsurumaki-cho, Shinjuku-ku, Tokyo

358.54

1,914.93

1,280

0.6

1,520

94.5

91.9 November 8, 2012

Residence-88

Prime Maison HATCHOBORI

Hatchobori, Chuo-ku, Tokyo

302.07

1,901.58

1,160

0.6

1,390

100.0

95.0 November 16, 2012

Residence-89

Prime Maison JINBOCHO

Kandajinbo-cho, Chiyoda-ku, Tokyo

389.482,341.30

1,640

0.8

1,880

97.3

100.0 March 1, 2013

Residence-90

Prime Maison GOTENYAMA EAST

Kitashinagawa, Shinagawa-ku, Tokyo

2,167.60

3,727.89

2,120

1.1

2,710

95.7

95.5 January 18, 2011

Residence-91

MAST LIFE AKIHABARA

Kanda Sakumagashi, Chiyoda-ku, Tokyo

151.48939.79

480

0.2

524

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

1.1

2,410

95.7

95.4 October 3, 2007

Residence-93

Esty Maison YAKUIN

Hirao, Chuo-ku, Fukuoka-shi, Fukuoka

1,342.00

5,590.13

2,008

1.0

2,280

97.4

95.8 February 2, 2006

Residence-94

Esty Maison KINSHICHO II

Kotobashi, Sumida-ku, Tokyo

1,679.75

11,160.19

6,720

3.4

7,920

97.4

98.2 January 17, 2008

Residence-95

Esty Maison OJIMA

Ojima, Koto-ku, Tokyo

3,003.87

11,940.22

7,120

3.6

8,510

96.2

95.5 September 13, 2007

Residence-96

Prime Maison FUJIMIDAI

Fujimidai, Chikusa-ku, Nagoya-shi, Aichi

4,882.14

6,173.03

1,755

0.9

2,020

95.5

91.1 April 24, 2007

Residence-97

Esty Maison TSURUMAI

Chiyoda, Naka-ku, Nagoya-shi, Aichi

3,470.05

21,577.20

3,760

1.9

4,340

100.0

100.0 November 27, 1999

Residence-98

Prime Maison MORISHITA

Morishita, Koto-ku, Tokyo

461.602,668.30

1,720

0.9

1,870

98.9

97.7 May 14, 2013

Residence-99

Prime Maison SHINAGAWA

Kita-Shinagawa, Shinagawa-ku, Tokyo

972.94

2,693.31

1,680

0.8

1,890

96.9

98.8 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

3,020

90.2

95.0 December 15, 2008

Residence-101 Prime Maison MINAMI 2-JO

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

1,085.66

8,477.68

1,470

0.7

1,870

99.1

100.0 November 30, 2009

Residence-102 Prime Maison KAMOKAMOGAWA

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

754.61

6,160.49

970

0.5

1,200

98.2

99.2 October 30, 2009

Residence-103 Prime Maison CENTRAL PARK (Note 8)

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

5,000.02

10,249.72

2,230

1.1

2,297

97.3

94.4 February 3, 2011

54

List of Properties Owned at End of Period (4)Acquisition Price
Property No.

Property Name

Location

Site Area(m2)

Total Floor
Area
(m2)

Price
(Million yen)

Estimated
Value at
End ofPeriod(Million yen)

Ratio
(%)

Occupancy Ratio (%)
As of Ｍａｒ. 31, As of Sept. 30,
2016
2016

Completion Date

Residence-104 MAST LIFE YAHIRO

Yahiro, Sumida-ku, Tokyo

1,296.64

4,012.49

1,670

0.8

1,830

100.0

100.0 January 14, 2011

Residence-105 Prime Maison EBISU

Ebisu, Shibuya-ku, Tokyo

587.16

3,798.12

3,585

1.8

4,170

95.2

95.4 June 5, 2014

Residence-106 Esty Maison SHIBAURA

Shibaura, Minato-ku, Tokyo

1,217.25

4,855.53

2,730

1.4

2,840

94.4

92.8 August 26, 1996

Residence-107 Granmast KANAZAWA NISHIIZUMI

Nishiizumi, Kanazawa-shi, Ishikawa

1,633.40

5,181.40

1,005

0.5

1,070

100.0

100.0 September 14, 2007

Residence-108 Granmast UNOMORIUnomori, Yokkaichi-shi, Mie

790.452,444.91

745

0.4

801

100.0

100.0 April 13, 2009

Residence-109 Esty Maison TSUTSUJIGAOKA

Nishitsutsujigaoka, Chofu-shi, Tokyo

1,503.25

2,456.48

871

0.4

901

94.1

100.0 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

2,700

100.0

100.0

Residence-111 MAST LIFE HINO

Shinmachi, Hino-shi, Tokyo

600.203,341.96

1,290

0.6

1,370

95.8

100.0 January 13, 2010

Residence-112 Prime Maison YOKOHAMA NIHON-ODORI

Honcho, Naka-ku, Yokohama-shi, Kanagawa, and another887.06

8,196.14

4,270

2.1

4,690

94.5

96.0 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

2.9

5,760

100.0

100.0 February 28, 2002

Residence-114 Prime Maison SHIBUYA

Shibuya, Shibuya-ku, Tokyo

431.802,238.04

2,190

1.1

2,300

-

96.6 July 4, 2014

Residence-115 Prime Maison HATSUDAI

Hatsudai, Shibuya-ku, Tokyo

644.333,761.80

2,700

1.4

2,860

-

100.0 December 11, 2014

Residence-116 Esty Maison UEMACHIDAI

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

407.962,609.61

950

0.5

994

-

94.0 August 17, 2005

Residence-117 Esty Maison KOBE-SANNOMIYA

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

446.712,304.05

970

0.5

975

-

93.2 March 22, 2007

124,692.84

449,380.87

195,34298.1

212,053

97.0

96.7

73,937.28

11,229.79

3,820

1.9

2,597

100.0

100.0

Residence Subtotal
Retail-1

HAMAMATSU Plaza (Note 10)

Kaminishi-cho, Higashi-ku, Hamamatsu-shi, Shizuoka,
and others

Other real estate in trust （retail property） Subtotal

73,937.28

11,229.79

3,820

1.9

2,597

100.0

100.0

Portfolio Total

198,630.12

460,610.66

199,163100.0

214,650

97.2

96.8

(Note 9)(Note 10)(Note 1)
(Note 2)

Based on information as of September 30, 2016. Occupancy rates are rounded to the nearest first decimal place.
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 are rounded 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 “Estimated Value at End of Period” is either the amount appraised based on an appraisal or the survey price on a real estate price survey by a real estate appraiser and rounded down to the nearest million yen.
(Note 5) 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 and245,317/329,739, respectively. However, “Site Area” indicates the total land area of the real estate in trust and “Total Floor Area” indicates the floor area of the entire building. The exclusive portions of the total floor area that the Investment
Corporation has acquired are 3,637.18m2, 1,148.58m2, 867.27m2 and 2,253.07m2, respectively.
(Note 6) 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 isindicated in the land leasehold agreement.
(Note 7) 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 of the land (measured area:
6.62m2) was disposed on July 29, 2016. The “Site Area”, “Acquisition price” and “Estimated Value at End of Period” do not include the disposed portion.
(Note 8) 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 included in the “Total Floor Area” aboveand “Completion Date” of the building (store) is not indicated.
(Note 9) 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.
(Note10) Hamamatsu Plaza is a commercial complex divided into Hamamatsu Plaza East area and the Hamamatsu Plaza West area, comprises a total of seven buildings, with five buildings located in Hamamatsu Plaza East area (the former ItoYokado Building (Currently the building is under demolition work. The same applies hereafter.), the Akachan Honpo Building, the Xebio Building, the Hamapla & Frespo Building, and a management building) and two buildings located in the
Hamamatsu Plaza West area (the Hamamatsu West Building and the Hamamatsu Plaza Sports Building (Zexis)). The Investment Corporation acquired trust beneficiary interests in real estate for these other than the Hamapla & Frespo
Building and the building of the Hamamatsu Plaza Sports Building (Zexis) on July 28, 2005 and started operations, but a portion was disposed on March 30, 2012 and September 30, 2013. From September 30, 2013 onward, the Investment
Corporation holds only a 49% quasi-co-ownership interest in the real estate trust beneficial interest of Hamamatsu Plaza East excluding the former Ito-Yokado Building and its site (hereafter, the “Hamamatsu Plaza East Xebio Building andOther Portions”). However, for the “Site Area” and “Total Floor Area,” those for the entire Hamamatsu Plaza East Xebio Building and Other Portions are indicated. In addition, the HAMAPLA Frespo Building is not included in the “Total Floor
Area” because only the land is owned and leased by the Investment Corporation (the buildings on it are owned by the tenants). The “Acquisition Price” and “Estimated Value at End of Period” are for the 49% quasi-co-ownership interest of theHamamatsu Plaza East Xebio Building and Other Portions, and do not include the disposed portion. With regard to “Completion date”, the management building was completed on November 7, 2000, and Akachan Honpo Building and XEBIOBuilding were completed on November 9, 2000. The “Completion Date” of HAMAPLA Frespo Building is not indicated, however, because the buildings on the land are owned by the tenants. Furthermore, a store Ito-Yokado Co., Ltd. operated
in the former Ito-Yokado Building had been closed on January 18, 2015.

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,
2016

As of Sept. 30,
2016

Direct capitalization rate (%)
Change(Million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Ｍａｒ. 31,
2016

As of Sept. 30,
2016

As of Ｍａｒ. 31,
2016

As of Sept. 30,
2016

As of Ｍａｒ. 31,
2016

As of Sept. 30,
2016

Balance sheet
amount(Million yen)

Unrealized
gain/loss(Million yen)

Residence-1

Esty Maison GINZA

6,090

6,130

40

4.3

4.3

4.5

4.5

4.5

4.5

4,737

1,392

Residence-3

Esty Maison AZABUNAGASAKA

1,690

1,690

-

4.4

4.4

4.5

4.5

4.6

4.6

1,614

75

Residence-4

Esty Maison EBISU II

1,890

1,920

30

4.4

4.4

4.5

4.5

4.6

4.6

1,882

37

Residence-5

Esty Maison EBISU

812

815

3

4.3

4.3

4.4

4.4

4.5

4.5

640

174

Residence-6

Esty Maison KANDA

1,490

1,500

10

4.4

4.4

4.5

4.5

4.6

4.6

1,272

227

Residence-8

Esty Maison KITASHINJUKU

1,500

1,500

-

4.6

4.6

4.6

4.6

4.8

4.8

1,170

329

Residence-10

Esty Maison ASAKUSAKOMAGATA

2,040

2,040

-

4.6

4.6

4.6

4.6

4.8

4.8

1,710

329

Residence-11

Esty Maison MACHIDA

1,490

1,510

20

5.1

5.0

5.0

4.9

5.3

5.2

1,160

349

Residence-12

Esty Maison KAWASAKI

2,350

2,350

-

4.8

4.7

4.8

4.7

5.0

4.9

1,830

519

Residence-14

Esty Maison SHINKAWASAKI

1,210

1,210

-

5.2

5.2

4.0

4.0

5.4

5.4

930

279

Residence-15

Esty Maison YOKOHAMA

2,000

2,040

40

4.8

4.7

4.6

4.5

5.0

4.9

1,901

138

Residence-16

Esty Maison KAMEIDO

1,490

1,520

30

4.8

4.7

4.6

4.5

5.0

4.9

1,420

99

Residence-17

Esty Maison MEGURO

1,030

1,030

-

4.4

4.4

4.2

4.2

4.6

4.6

794

235

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

1,150

1,180

30

5.2

5.1

5.1

5.0

5.3

5.2

1,173

6

Residence-19

Esty Maison SUGAMO

1,580

1,580

-

4.3

4.3

4.1

4.1

4.5

4.5

1,454

125

Residence-20

Esty Maison KYOBASHI

2,830

2,880

50

5.0

4.9

4.9

4.8

5.1

5.0

2,307

572

Residence-21

Esty Maison MEGUROHONCHO

1,090

1,100

10

4.5

4.4

4.3

4.2

4.7

4.6

1,118

(18)

Residence-22

Esty Maison HAKURAKU

879

898

19

4.9

4.8

4.7

4.6

5.1

5.0

717

180

Residence-23

Esty Maison MINAMIHORIE

1,020

1,010

(10)

4.8

4.7

4.6

4.5

5.0

4.9

947

62

Residence-24

Esty Maison GOTANDA

2,890

2,960

70

4.7

4.6

4.4

4.3

4.9

4.8

2,752

207

Residence-25

Esty Maison OISENDAIZAKA

2,590

2,590

-

4.5

4.4

4.3

4.2

4.7

4.6

2,229

360

Residence-26

Esty Maison SHINAGAWA SEASIDE

2,050

1,980

(70)

4.3

4.4

4.1

4.2

4.5

4.6

1,980

(0)

Residence-27

Esty Maison MINAMIAZABU

1,220

1,190

(30)

4.0

4.1

3.8

3.9

4.2

4.3

1,198

(8)

Residence-28

Esty Maison JOTO

957

949

(8)

5.1

5.1

4.9

4.9

5.3

5.3

979

(30)

Residence-29

Esty Maison TSUKAMOTO

1,050

1,050

-

5.2

5.2

5.0

5.0

5.4

5.4

1,120

(70)

Residence-30

Esty Maison KAWASAKI II

1,950

1,920

(30)

4.5

4.5

4.3

4.3

4.7

4.7

1,727

192

Residence-31

Esty Maison AZABUJUBAN

2,660

2,630

(30)

4.0

4.0

3.8

3.8

4.2

4.2

2,604

25

Residence-33

Esty Maison ITABASHIHONCHO

925

927

2

4.4

4.4

4.2

4.2

4.6

4.6

915

11

Residence-34

Esty Maison OIZUMIGAKUEN

776

778

2

4.5

4.5

4.3

4.3

4.7

4.7

795

(17)

Residence-35

Esty Maison TENJINHIGASHI I

394

352

(42)

5.4

5.3

5.2

5.1

5.6

5.5

381

(29)

Residence-36

Esty Maison TENJINHIGASHI II

737

714

(23)

5.4

5.3

5.2

5.1

5.6

5.5

717

(3)

Residence-37

Esty Maison SHIJONISHINOTOIN

1,190

1,190

-

5.1

5.1

4.9

4.9

5.3

5.3

1,288

(98)

Residence-39

Esty Maison HIGASHISHINAGAWA

2,400

2,310

(90)

4.6

4.5

4.4

4.3

4.8

4.7

2,446

(136)

56

List of Fiscal Period-End Estimated Values (2)Estimated value at end of period(Million yen)
Property No.

Property Name

As of Ｍａｒ. 31,
2016

As of Sept. 30,
2016

Direct capitalization rate (%)
Change(Million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Ｍａｒ. 31,
2016

As of Sept. 30,
2016

As of Ｍａｒ. 31,
2016

As of Sept. 30,
2016

As of Ｍａｒ. 31,
2016

As of Sept. 30,
2016

Balance sheet
amount(Million yen)

Unrealized
gain/loss(Million yen)

Residence-40

Esty Maison HACHIOJIMINAMINO

865

875

10

5.2

5.1

5.1

5.0

5.3

5.2

887

(12)

Residence-41

Esty Maison NISHINAKAJIMA

1,900

1,900

-

5.0

5.0

4.8

4.8

5.2

5.2

1,926

(26)

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

2,490

2,490

-

4.4

4.4

4.2

4.2

4.6

4.6

2,486

3

Residence-43

Esty Maison MUSASHIKOYAMA

1,070

1,020

(50)

4.4

4.4

4.2

4.2

4.6

4.6

948

71

Residence-44

Esty Maison SENDAGI

682

683

1

4.4

4.4

4.2

4.2

4.6

4.6

712

(29)

Residence-45

Esty Maison YOTSUYASAKAMACHI

2,060

2,050

(10)

4.3

4.3

4.1

4.1

4.5

4.5

2,191

(141)

Residence-46

Esty Maison HAKATAHIGASHI

2,470

2,400

(70)

5.2

5.1

5.2

5.1

5.3

5.2

2,028

371

Residence-47

Esty Maison KAMIGOFUKU

859

803

(56)

5.1

5.0

5.1

5.0

5.2

5.1

811

(8)

Residence-48

Esty Maison SANGENJAYA

859

860

1

4.4

4.4

4.5

4.5

4.6

4.6

837

22

Residence-50

Prime Maison MUSASHINONOMORI

1,890

1,780

(110)

5.1

5.0

5.0

4.9

5.3

5.2

1,490

289

Residence-51

Prime Maison HIGASHISAKURA

1,440

1,470

30

5.1

5.0

5.0

4.9

5.3

5.2

1,046

423

Residence-52

Prime Maison KAYABAKOEN

772

797

25

5.3

5.2

5.2

5.1

5.5

5.4

600

196

Residence-53

Esty Maison SANGENJAYA II

826

827

1

4.5

4.5

4.6

4.6

4.7

4.7

671

155

Residence-54

Esty Maison ITABASHI C6

2,480

2,540

60

4.6

4.5

4.4

4.3

4.8

4.7

2,119

420

Residence-55

MAST HAKATA

2,440

2,440

-

5.2

5.2

4.7

4.7

5.4

5.4

1,802

637

Residence-56

Esty Maison KINSHICHO

1,240

1,250

10

4.5

4.4

4.3

4.2

4.7

4.6

1,035

214

Residence-57

Esty Maison MUSASHIKOGANEI

1,690

1,700

10

4.8

4.7

4.9

4.8

5.0

4.9

1,452

247

Residence-58

Prime Maison GOKISO

1,850

1,880

30

5.1

5.0

5.1

5.0

5.3

5.2

1,543

336

Residence-59

Prime Maison YUHIGAOKA

916

917

1

4.8

4.8

4.6

4.6

5.0

5.0

762

154

Residence-60

Prime Maison KITATANABE

594

594

-

5.2

5.2

5.0

5.0

5.4

5.4

506

87

5.0
(Note 4)

5.6

5.5

1,787

202

Residence-61

Prime Maison MOMOCHIHAMA

1,970

1,990

20

5.4

5.3

5.1
(Note 4)

Residence-62

Esty Maison AKIHABARA

1,900

1,930

30

4.5

4.4

4.3

4.2

4.7

4.6

1,506

423

Residence-63

Esty Maison SASAZUKA

3,130

3,200

70

4.5

4.4

4.3

4.2

4.7

4.6

2,783

416

Residence-64

Prime Maison GINZA EAST

5,860

5,990

130

4.3

4.2

4.1

4.0

4.5

4.4

5,004

985

Residence-65

Prime Maison TAKAMI

987

1,010

23

4.9

4.8

5.0

4.9

5.1

5.0

865

144

Residence-66

Prime Maison YADAMINAMI

782

799

17

5.3

5.2

5.2

5.1

5.5

5.4

681

117

Residence-67

Prime Maison TERIHA

1,250

1,280

30

5.5

5.4

5.3

5.2

5.7

5.6

1,055

224

5.0
(Note 4)

5.5

5.4

1,276

253

Residence-68

Esty Maison HIGASHISHIRAKABE

1,490

1,530

40

5.3

5.2

5.1
(Note 4)

Residence-69

Esty Maison SENGOKU

1,270

1,300

30

4.3

4.2

4.1

4.0

4.5

4.4

1,085

214

Residence-70

Esty Maison DAIZAWA

2,120

2,170

50

4.3

4.2

4.1

4.0

4.5

4.4

1,888

281

Residence-71

Esty Maison TOGOSHI

1,650

1,660

10

4.4

4.4

4.5

4.5

4.6

4.6

1,371

288

Residence-72

Esty Maison KAWARAMACHI

1,860

1,860

-

4.9

4.9

5.0

5.0

5.1

5.1

1,581

278

57

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

Property Name

As of Ｍａｒ. 31,
2016

As of Sept. 30,
2016

Direct capitalization rate (%)
Change(Million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Ｍａｒ. 31,
2016

As of Sept. 30,
2016

As of Ｍａｒ. 31,
2016

As of Sept. 30,
2016

As of Ｍａｒ. 31,
2016

As of Sept. 30,
2016

Balance sheet
amount(Million yen)

Unrealized
gain/loss(Million yen)

Residence-73

Esty Maison NISHITENMA

1,620

1,630

10

4.9

4.8

5.0

4.9

5.1

5.0

1,388

241

Residence-74

Esty Maison SHIROKANEDAI

2,250

2,250

-

4.3

4.3

4.1

4.1

4.5

4.5

1,962

287

Residence-75

Esty Maison HIGASHISHINJUKU (Note 5)

1,550

1,550

-

4.4

4.4

4.5

4.5

4.6

4.6

1,350

199

Residence-76

Esty Maison MOTOAZABU

1,470

1,460

(10)

4.2

4.2

4.3

4.3

4.4

4.4

1,176

283

Residence-77

Esty Maison TORITSUDAIGAKU

816

816

-

4.3

4.3

4.4

4.4

4.5

4.5

735

80

Residence-78

Esty Maison MUSASHIKOYAMA II

976

999

23

4.4

4.3

4.2

4.1

4.6

4.5

843

155

Residence-79

Esty Maison NAKANO

1,760

1,800

40

4.4

4.3

4.2

4.1

4.6

4.5

1,537

262

Residence-80

Esty Maison SHINNAKANO

951

972

21

4.5

4.4

4.3

4.2

4.7

4.6

845

126

Residence-81

Esty Maison NAKANOFUJIMICHO

944

946

2

4.5

4.5

4.6

4.6

4.7

4.7

864

81

1,110

10

4.5

4.4

4.3

4.2

4.7

4.6

947

162

Residence-82

Esty Maison TETSUGAKUDO

1,100

Residence-83

Esty Maison KOENJI

1,100

1,100

-

4.4

4.4

4.5

4.5

4.6

4.6

962

137

Residence-84

Esty Maison OSHIAGE

2,330

2,340

10

4.6

4.6

4.6

4.6

4.8

4.8

1,938

401

Residence-85

Esty Maison AKABANE

3,100

3,140

40

4.6

4.5

4.4

4.3

4.8

4.7

2,692

447

Residence-86

Esty Maison OJI

1,550

1,590

40

4.6

4.5

4.4

4.3

4.8

4.7

1,363

226

Residence-87

Prime Maison WASEDA

1,520

1,520

-

4.3

4.3

4.1

4.1

4.5

4.5

1,254

265

Residence-88

Prime Maison HATCHOBORI

1,390

1,390

-

4.3

4.3

4.1

4.1

4.5

4.5

1,134

255

Residence-89

Prime Maison JINBOCHO

1,840

1,880

40

4.4

4.3

4.2

4.1

4.6

4.5

1,610

269

Residence-90

Prime Maison GOTENYAMA EAST

2,640

2,710

70

4.2

4.1

4.0

3.9

4.4

4.3

2,107

602

Residence-91

MAST LIFE AKIHABARA

523

524

1

4.5

4.5

4.3

4.3

4.7

4.7

478

45

Residence-92

Esty Maison AOI

2,370

2,410

40

5.1

5.0

5.1

5.0

5.3

5.2

2,114

295

Residence-93

Esty Maison YAKUIN

2,260

2,280

20

5.0

4.9

5.1

5.0

5.2

5.1

2,054

225

Residence-94

Esty Maison KINSHICHO II

7,910

7,920

10

4.4

4.4

4.2

4.2

4.6

4.6

6,731

1,188

Residence-95

Esty Maison OJIMA

8,510

8,510

-

4.4

4.4

4.2

4.2

4.6

4.6

7,134

1,375

Residence-96

Prime Maison FUJIMIDAI

1,970

2,020

50

5.2

5.1

5.0

4.9

5.4

5.3

1,767

252

Residence-97

Esty Maison TSURUMAI

4,220

4,340

120

5.3

5.2

5.1

5.0

5.5

5.4

3,843

496

Residence-98

Prime Maison MORISHITA

1,870

1,870

-

4.6

4.6

4.6

4.6

4.8

4.8

1,753

116

Residence-99

Prime Maison SHINAGAWA

1,850

1,890

40

4.5

4.4

4.3

4.2

4.7

4.6

1,710

179

Residence-100 Prime Maison ODORI KOEN

3,040

3,020

(20)

5.1

5.1

4.9

4.9

5.3

5.3

2,713

306

Residence-101 Prime Maison MINAMI 2-JO

1,860

1,870

10

5.2

5.2

5.0

5.0

5.4

5.4

1,505

364

Residence-102 Prime Maison KAMOKAMOGAWA

1,190

1,200

10

5.2

5.2

5.0

5.0

5.4

5.4

996

203

Residence-103 Prime Maison CENTRAL PARK (Note 6)

2,283

2,297

14

5.3

5.2

5.1

5.0

5.4

5.3

2,300

(3)

Residence-104 MAST LIFE YAHIRO

1,800

1,830

30

4.8

4.7

4.6

4.5

5.0

4.9

1,707

122

Residence-105 Prime Maison EBISU

4,170

4,170

-

4.2

4.2

4.0

4.0

4.4

4.4

3,647

522

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,
2016

As of Sept. 30,
2016

Residence-106 Esty Maison SHIBAURA

2,780

2,840

Residence-107 Granmast KANAZAWA NISHIIZUMI

1,050

1,070

Residence-108 Granmast UNOMORI

786

Residence-109 Esty Maison TSUTSUJIGAOKA

Direct capitalization rate (%)
Change(Million yen)

Discount rate (%)

Terminal capitalization rate (%)

Balance sheet
amount(Million yen)

Unrealized
gain/loss(Million yen)

As of Ｍａｒ. 31,
2016

As of Sept. 30,
2016

As of Ｍａｒ. 31,
2016

As of Sept. 30,
2016

As of Ｍａｒ. 31,
2016

As of Sept. 30,
2016

60

4.5

4.4

4.3

4.2

4.7

4.6

2,884

(44)

20

5.5

5.4

5.3

5.2

5.7

5.6

1,049

20

801

15

5.5

5.4

5.3

5.2

5.7

5.6

772

28

911

901

(10)

4.8

4.7

4.9

4.8

5.0

4.9

916

(15)

Residence-110 Esty Maison KOHOKU TSUNASHIMA

2,731

2,700

(31)

4.8

4.8

4.6

4.6

5.0

5.0

2,855

(155)

Residence-111 MAST LIFE HINO

1,340

1,370

30

5.0

4.9

4.8

4.7

5.1

5.0

1,345

24

Prime Maison YOKOHAMA
Residence-112
NIHON-ODORI

4,700

4,690

(10)

4.5

4.5

4.3

4.3

4.7

4.7

4,451

238

Residence-113 KOBE Women’s Student Housing

5,720

5,760

40

5.3

5.3

5.1

5.1

5.5

5.5

6,169

(409)

Residence-114 Prime Maison SHIBUYA

-

2,300

-

-

4.2

-

4.0

-

4.4

2,243

56

Residence-115 Prime Maison HATSUDAI

-

2,860

-

-

4.3

-

4.1

-

4.5

2,788

71

Residence-116 Esty Maison UEMACHIDAI

-

994

-

-

4.7

-

4.4

-

4.9

988

5

Residence-117 Esty Maison KOBE-SANNOMIYA

-

975

-

-

4.8

-

4.6

-

5.0

1,011

(36)

203,833

212,053

1,091(Note 7)

4.7

4.7

4.6

4.5

4.9

4.9

189,327

22,7256.0(Note 9)Residence Subtotal
Retail-1

HAMAMATSU Plaza (Note 8)

2,562

2,597

34

6.4

6.3

6.1
(Note 9)

6.5

6.4

3,666

(1,069)Retail-4

b-town MINAMIAOYAMA

1,170

-

-

4.2

-

4.2

-

4.3

-

-

-

5.3

6.3

5.2

6.0

5.4

6.4

3,666

(1,069)

4.7

4.7

4.6

4.5

4.9

4.9

192,994

21,655

Other real estate in trust （retail properties） Subtotal

3,732

2,597

Portfolio Total

207,565

214,650（Note 1）
（Note 2）
（Note 3）（Note 4）（Note 5）（Note 6）（Note 7）（Note 8）（Note 9）34
(Note 7)1,125
(Note 7)

Amounts of less than one million yen are rounded down.
“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 recordedon the balance sheet as of September 30, 2016 for assets owned at the end of the fiscal period ended September 30, 2016 (the 22nd fiscal period).
“Direct capitalization rate”, “Discount rate” and “Terminal capitalization rate” in the residence subtotal, other real estate in trust （retail facilities） subtotal and portfolio total are the simple averages of the figures for the owned properties andare rounded to the nearest first decimal place.
A master lease agreement with rent guarantee is concluded with Sekiwa Real Estate Kyushu, Ltd. with regard to Prime Maison MOMOCHIHAMA. In calculating the period-end estimated value as of March 31, 2016, the property’s discountrates until the expiry of the contract is 5.1% and its discount rates after the expiry of the contract is 5.3%, while in calculating the period-end estimated value as of September 30, 2016, the property’s discount rates until the expiry of the contract
is 5.0% and its discount rates after the expiry of the contract is 5.2%. Furthermore, a master lease agreement with rent guarantee is concluded with Sekiwa Real Estate Chubu, Ltd. with regard to Esty Maison HIGASHISHIRAKABE. In
calculating the period-end estimated value as of March 31, 2016, the property’s discount rates until the expiry of the contract is 5.1% and its discount rates after the expiry of the contract is 5.3%, while in calculating the period-end estimatedvalue as of September 30, 2016, the property’s discount rates until the expiry of the contract is 5.0% and its discount rates after the expiry of the contract is 5.2%. For the sake of convenience, the above chart shows the discount rates until the
expiry of the contracts.
The Investment Corporation acquired trust beneficiary interests 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 of the land (measured area:
6.62m2) was disposed on July 29, 2016. The “Estimated value at end of period” and “Balance sheet amount” as of September 30, 2016 do not include the disposed portion.
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 indi cate those for the residential portion. “Discount rates” of the leased land portion are calculated to be 5.0% and 4.8%,
respectively, at the fiscal period ended March 31, 2016 and the fiscal period ended September 30, 2016 by the DCF method.
The residence subtotal, other real estate in trust (retail properties) subtotal and portfolio total of the “Change” column indicate the aggregate amount of changes of properties owned as of the end of the fiscal period ended March 31, 2016 (the21st fiscal period) (excluding four properties acquired and a property disposed in the period ended September 30, 2016 (the 2 2nd fiscal period)).
Hamamatsu Plaza is a commercial complex divided into Hamamatsu Plaza East area and the Hamamatsu Plaza West area, comprises a total of seven buildings, with five buildings located in Hamamatsu Plaza East area (the former ItoYokado Building (Currently the building is under demolition work. The same applies hereafter.), the Akachan Honpo Building, the Xebio Building, the Hamapla & Frespo Building, and a management building) and two buildings located in the
Hamamatsu Plaza West area (the Hamamatsu West Building and the Hamamatsu Plaza Sports Building (Zexis)). The Investment Corporation acquired trust beneficiary interests in real estate for these other than the Hamapla & Frespo
Building and the building of the Hamamatsu Plaza Sports Building (Zexis) on July 28, 2005 and started operations, but a portion was disposed on March 30, 2012 and September 30, 2013. As of September 30, 2013, the Investment
Corporation holds only a 49% quasi-co-ownership interest in the trust beneficiary interest in real estate for Hamamatsu Plaza East excluding the former Ito-Yokado Building and its site (hereafter, the “Hamamatsu Plaza East Xebio Building
and Other Portions”). Consequently, “Period-end appraisal value” and “Balance sheet amount” are for the 49% quasi-co-ownership interest of the Hamamatsu Plaza East Xebio Building and Other Portions and do not include the portion thatwas disposed. Furthermore, a store Ito-Yokado Co., Ltd. operated in the former Ito-Yokado Building had been closed on January 18, 2015.
As for Hamapla & Frespo Building located in the Hamamatsu Plaza East indicated above (Note 8), because only the land is owned and leased by the Investment Corporation through real estate trust, appraisal value is calculated using the
DCF method and “Direct capitalization rate” and “Terminal capitalization rate” are not indicated. Furthermore, “Discount rate” is indicated in the above table for all properties except Hamapla & Frespo Building. “Discount rates” of the leased
land portion of the Hamapla & Frespo Building as of March 31, 2016 and September 30, 2016 are calculated to be 5.1% and 5.0%, respectively, using the DCF method.

59

Overview of Interest-Bearing Debt (1)Current portion of
long-termloans payable

ShortTermloans
payable■ Loans

As of date of this document
Contract

Borrowing period

Drawdown Date

Balance(Note 1)

The individual loan contract dated August 26, 2016

1 yearAugust 31, 2016

¥3,000 million

The individual loan contract dated February 28, 2012

5 years

March 2, 2012

¥1,500 million

1.18975%

The individual loan contract dated March 5, 2012

5 years

March 8, 2012

¥5,000 million

1.19475%

The individual loan contract dated July 30, 2012

5 years and 1 month

August 2, 2012

¥2,705 million

0.95750%

The individual loan contract dated February 25, 2013

4 years

March 1, 2013

¥3,000 million

0.65475%

Subtotal

SubtotalInterest Rate
Fixed/Floating(Note 2)0.20500%

August 2, 2012

¥3,882 million

1.15475%

The individual loan contract dated February 5, 2013

6 years and 1 month

February 8, 2013

¥4,500 million

0.89900%

7 years

February 28, 2013

¥5,242 million

1.02225%

5 years

February 28, 2013

¥2,100 million

0.75600%

7 years

August 30, 2013

¥5,500 million

1.17200%

5 years

August 30, 2013

¥2,500 million

0.46000%

The individual loan contract dated February 25, 2013

The individual loan contract dated August 27, 2013

Long-Term loans payable

The individual loan contract dated March 25, 2014

Fixed
(Note 3)
Fixed
(Note 3)
Fixed
(Note 3)
Fixed
(Note 3)February 28, 2017
February 28, 2017
August 31, 2017
February 28, 2017¥12,205 million

6 years and 7 months

The individual loan contract dated February 25, 2014

August 31, 2017

¥3,000 million

The individual loan contract dated July 30, 2012

The individual loan contract dated January 28, 2014

Floating

Repayment Date

Fixed
(Note 3)
Fixed
(Note 3)
Fixed
(Note 3)
Fixed
(Note 3)
Fixed
(Note 3)
Floating
Fixed(Note 3)
Fixed
(Note 3)
Fixed
(Note 3)
Fixed
(Note 3)
Fixed
(Note 3)
Fixed
(Note 3)
Fixed
(Note 3)February 28, 2019
February 28, 2019
February 28, 2020
February 28, 2018
August 31, 2020
August 31, 2018

8 years and 1 monthJanuary 31, 2014

¥1,800 million

1.17350%

8 years

February 28, 2014

¥4,680 million

1.11000%

7 years

February 28, 2014

¥3,900 million

0.95225%

6 years

February 28, 2014

¥1,550 million

0.79614%

7 years

March 28, 2014

¥2,100 million

0.97300%

8 years

August 29, 2014

¥5,400 million

0.96475%

7 years

August 29, 2014

¥4,400 million

0.83600%

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

The individual loan contract dated August 26, 2014

The individual loan contract dated February 24, 2015

Fixed
(Note 3)
Fixed
(Note 3)February 28, 2022
February 28, 2022
February 26, 2021
February 28, 2020
February 26, 2021
August 31, 2022
August 31, 2021

7 years

February 27, 2015

¥3,350 million

0.73975%

6 years

February 27, 2015

¥3,900 million

0.62800%

7 years and 7 months

January 29, 2016

¥2,200 million

0.67400%

Fixed

August 31, 2023

0.68030%

Fixed(Note 3)

August 31, 2023

The individual loan contract dated January 26, 2016

7 years and 7 months

January 29, 2016

¥1,900 million

February 28, 2022
February 26, 2021

60

Overview of Interest-Bearing Debt (2)Long-Term loans payable

Contract

Balance(Note 1)

Interest Rate
Fixed/Floating(Note 2)

Borrowing period

Drawdown Date

Repayment Date

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

9 years

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

The individual loan contract dated March 29, 2016

The individual loan contract dated August 26, 2016

Subtotal¥79,004 million

Total loans¥94,209 million■ Investment Corporation Bonds
Name

Date of issuance

Balance(Note 1)

Interest Rate Fixed/Floating Redemption Date
(Note 2)First Series Unsecured Investment Corporation Bonds

February 28, 2013

¥4,000 million

0.63000%

Fixed

February 28, 2018

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

Total Investment Corporation Bonds¥14,500 million

Total interest-bearing debt

¥108,709 million■ Commitment Line
Maximum Commitment Line AmountContract
Commitment Line Contract dated October 7, 2016
Total

¥10,000 million¥10,000 million

Unused Commitment Line BalanceContract Period¥10,000 million From November 1, 2016 to October 31, 2017
¥10,000 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: As for above borrowings, securities are unsecured and unguaranteed.

61

Overview of Unitholders as of September 30, 2016
Major Unitholders

Diversification of Unitholders

Name / Company Nameof Investment
Investment Units Ratio
Units Owned to
Owned
Total Investment(units)Units Issued (%)

Japan Trustee Services Bank, Ltd.
(Trust Account)

286,100

28.10

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

61,019

5.99

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

49,770

4.88

Sekisui House Ltd.

39,000

3.83

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

34,995

3.43

THE FUJI FIRE AND MARINE INSURANCECOMPANY, LIMITED

20,630

2.02

THE HACHIJUNI BANK, LTD.

19,754

1.94

Financial Institutions(including securities companies)
135 (1.23%)

Other domestic firms

Foreign firms

Individuals and others

215 (1.97%)
158 (1.44%)

Sept. 30, 2016
10,935 unitholders

10,427 (95.35%)
136 (1.14%)
227 (1.90%)
147 (1.23%)

Mar. 31, 2016
11,958 unitholders

11,448 (95.74%)

133 (1.11%)
225 (1.88%)
120 (1.00%)
Sept. 30, 2015
11,943 unitholders

11,465 (96.00%)

0%

20%

40%

60%

80%

100%

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

DEUTSCHE BANK AG LOMDON-PB NONTREATY CLIENTS 613

19,386

1.90

The Hokuriku Bank, LTD.

16,517

1.62

Spring Investors Co., Ltd.

13,0001.27

560,171

55.02

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

Sept. 30, 2016
1,018,110 units

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

651,771 units(64.02%)

121,106 units
92,283 units(11.90%)(9.06%)
152,950 units(15.02%)

Sept. 30, 2015
1,018,110 units

684,260 units(67.21%)

91,822 units
124,902 units(9.02%)(12.27%)
117,126 units(11.50%)■The status of large holdings as determined by the large share holdings reports (including
reports of changes) submitted by November 4, 2016 is as follows.
Name

Mitsubishi UFJ
Financial Group, Inc.

Sumitomo Mitsui
Trust Bank, Limited

Mizuho Trust &Banking Co., Ltd.

Total units held

28,195 units

104,732 units

122,913 units

Total percentage ofownership

2.77%

10.29%

12.07%

Submission date

April 4, 2016

June 13, 2016

October 7, 2016

0%

20%

40%

60%

80%

100%

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

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

62

Historical Investment Unit Price
Investment Unit Price and Trading Volume after Change of Sponsor(Yen)160,000

2,400

120,000

1,800

80,0001,200

Sekisui House SI Residential Investment Corporation investment unit price (left axis)

40,000600

TSE REIT Index (right axis)

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

Sept.
2011

Mar.
2012

Sept.
2012

Mar.
2013

Sept.
2013

Mar.
2014

Sept.
2014

Mar.
2015

Sept.
2015

Mar.
2016

Sept.
2016

0

（Units）
35,000
Trading volume

30,00025,00020,00015,00010,000
5,000
0
Mar.
2010

Sept.
2010

Mar.
2011

Mar.
2016

Sept.
2016

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 abovegraph 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.

63