Sekisui House SI Asset Management, LTD.

Sekisui House SI Investment Corporation
Business Results for the 15th Fiscal Period
May 17, 2013

Sekisui House SI Investment Corporation
Business Results for the 15th Fiscal Period from Oct. 1, 2012 to Mar. 31, 2013

8973

Contents
Ⅰ. Overview of the Fifteenth Fiscal Period Ended March 31, 2013

Ⅳ. Financing Activities of the Fifteenth Fiscal Period Ended
March 31, 2013

・Progress Highlights

4・Summary of Business Results for Fifteenth Fiscal Period

5

Ⅱ. Growth of Assets under Management through Public
Offerings in Two Consecutive Periods
・Establishment of Growth Cycle through Public Offerings in Two
Consecutive Periods

・Overview of Financing Activities
Ⅴ. Forecasts for the Sixteenth Fiscal Period Ending
September 30, 2013 and Current Management Policy
・Forecasts for the Sixteenth Fiscal Period

7・Transition to Premium Public Offering and Generation of Capacity
8
to Acquire Properties

24

29

・Progress of the Investment Corporation’s Growth Strategy and30
the Current Management Policy
Ⅵ. Appendix

・Historical Investment Unit Price and Increase of Liquidity

9

・Balance Sheets

35

・Expansion of Asset Size through Diversification of Property
Acquisition Routes and Acquisition Methods

10・Statements of Income

37

・Increase of Ratio of Residences in the Greater Tokyo Area

11

・Statements of Cash Flows / Cash Distributions

38

・Decrease of Average Property Age, Increase of Properties Close
to Stations and Enhancement of Residential Types

12・Summary of Selected Financial Data

39

・Overview of Assets Acquired at the 15th FP Public Offering・Overview of Assets Acquired in February and March of 2013
・Overview of Assets Acquired at the 16th FP Public Offering

13
14
15

・History of the Investment Corporation since Listing・Portfolio Development Policy
・Portfolio Map

40
41
42

・Status of Portfolio

44

Ⅲ. Portfolio Management Status of the Fifteenth Fiscal Period
Ended March 31, 2013
・[Entire Portfolio] Occupancy Rate and NOI Yields
・[Residential] Occupancy Status by Investment Area

17
18

・List of Properties Owned at End of Period
・List of Period-End Estimated Values

46
49・[Residential] Rent Trends in New Contracts and Contract
Renewals

19・Overview of Interest-Bearing Debt

52

・[Residential] Other Measures
・[Retail] Occupancy Status and Other Measures

20
21

・Overview of Unitholders as of March 31, 2013
・Overview of Asset Management Company

55
56

・[Entire Portfolio] Changes in Unrealized Loss Ratio, Etc.

22

・Historical Investment Unit Price57

2

Prime Maison GINZA EAST

Ⅰ. Overview of the Fifteenth Fiscal Period
Ended March 31, 2013

プライムメゾン東桜
マスト博多
マスト博多

Progress Highlights
Expansion of the Asset Size through Public Offerings
October 2012

Properties acquired from the beginning of theperiod ended March 2013 (15th FP)
to the date of this document

First public offering after change of sponsors- External growth centering on properties developed
by Sekisui House

April 2013

(October 1, 2012 to May 17, 2013)

Implemented second consecutive public offering in April 2013

Total acquisition price:- External growth through new acquisition method

33.9 billion yen(Total of 23 residential properties)

Improvement of Rating and Diversification of Funding Methods
At end of February 2013, first issuance ofinvestment corporation bonds through public
offering after change of sponsors

February 2013 Acquisition of new credit rating
Japan Credit Rating Agency, Ltd. (JCR)

AA- (Stable)

Total issuance:
April 2013

Improvement of existing credit rating

Rating and Investment Information, Inc.

A (Positive) ⇒A+(Stable)(5-year bonds: 4.0 billion yen

6.0 billion yen
7-year bonds: 2.0 billion yen)

Steady Maintenance and Increase of the Cash Distribution Level

Realized increase of profitability alongside expansion of asset size
Actual cash distribution inprevious period

Actual cash distribution inperiod under review

Forecast cash distribution
for next period

Period ended September 2012 (14th FP)

Period ended March 2013 (15th FP)

Period ending September 2013 (16th FP)¥10,351¥10,459¥10,500

Maintenance and increase of cash distribution level expected even after public offerings

4Summary of Business Results for Fifteenth Fiscal Period
Comparison with Forecasts
Forecasts for
Fiscal Period Ended
Mar. 31, 2013 after revision(announced Apr. 4, 2013)

Initial forecasts
for Fiscal Period
Ended Mar. 31, 2013
(announced Nov. 15, 2012)

Operating revenue¥4,038 million¥3,961 million¥4,038 million ¥76 million

1.9%

Operating income¥1,905 million¥1,866 million¥1,908 million ¥41 million

2.2%

Ordinary income¥1,431 million¥1,423 million¥1,435 million ¥11 million

0.8%

Fiscal Period Ended
Mar. 31, 2013(182 days) (Actual)

Difference
between actual results
and initial forecasts◇ Factors for differences between actual results andinitial forecasts for the fiscal period ended March 31,
2013
・ Operating income
Operating revenue
Increase in rent revenue :Increase in other lease business revenue :Operating expenses
Increase in expenses related to rent business:
Increase in other business expenses:

Net income
Cash distributions perunit¥1,429 million¥1,421 million¥10,430¥10,370¥1,433 million ¥12 million¥10,459

¥89

0.8%
0.9%

+¥65 million+¥11 million+¥24 million+¥11 million

・ Ordinary income
Increase in non-operating revenue:
Increase in non-operating expenses:+¥3 million+¥32 million

Comparison with Previous Fiscal Period
Fiscal Period
Ended Sep. 30, 2012(183 days) (Actual)

Fiscal Period
Ended Mar. 31, 2013(182 days) (Actual)◇ Factors for period-on-period changes to actual

Changeresults for the fiscal period ended March 31, 2013

Operating revenue¥3,567 million¥4,038 million¥471 million

13.2%

Operating income¥1,663 million¥1,908 million¥244 million

14.7%

Ordinary income¥1,193 million¥1,435 million¥242 million

20.3%

Net income¥1,191 million¥1,433 million¥242 million

20.4%¥10,351¥10,459

¥108

1.0%

Cash distributions per unit

・ Operating income

Operating revenue
Increase in rent revenue :Increase in other lease business revenue:
Increase in silent partnership distribution:

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

Total assets¥114,174 million¥133,843 million¥19,669 million

Interest-bearing debt

¥59,503 million¥71,434 million¥11,930 million

Net assets¥7,474 million¥51,714 million¥59,188 million

Period-end investment unit
price¥353,500¥533,000

Number of investment units
issued and outstanding

115,070 units

137,070 units

Period-end market value¥40,677 million¥73,058 million

Cash distributions¥1,191 million¥1,433 million

Notes: 1. Amounts less than the indicated unit are rounded down.

+¥469 million+¥1 million+¥1 million+¥217 million+¥9 million

・ Ordinary income
Increase in non-operating revenue:
Increase in non-operating expenses:+¥2 million+¥4 million

2. Percentage figures are rounded to the nearest first decimal place.

5

Prime Maison TAKAMI

Ⅱ. Growth of Assets under Management throughPublic Offerings in Two Consecutive Periods

プライムメゾン東桜
マスト博多
マスト博多

Establishment of Growth Cycle through Public Offerings in Two Consecutive Periods
The cash distribution level is steadily increasing with the positive growth cycle established after the change of sponsors

Cashdistributions

In the portfolio, external growth centering on residences is making way with the further decrease of the concentration of risk at HAMAMATSU Plaza

Actual cash
distributions

Actual cash
distributions

Actual cash
distributions

Forecast cash
distributions¥8,160¥10,351¥

10,459¥10,500

53.4%

LTV

52.1%

(Estimate)

47.1%

October 2012
Generation of capacity
to acquire properties
through public offering

Utilization of borrowing
capacity

Asset size (total acquisition price)

Approx. 51%(Estimate)

49.9%

Total acquisition price of residences
Total acquisition price of retail facilities¥99.9 billion yen（53 properties）¥110.2 billion yen（66 properties）

Utilization of borrowing
capacity¥119.4 billion yen（71 properties）

April 2013
Generation of capacity
to acquire properties
through public offering¥128.7 billion yen（77 properties）¥144.1 billion yen（89 properties）
Asset size
after changeof sponsors:
44.2 billion
yen increase

Investment ratio of residences

Investment ratio of residences

Investment ratio of residences

Investment ratio of residences

Investment ratio of residences

70.9%

81.7%

83.1%

84.3%

Investment ratio of largest property

Investment ratio of largest property

Investment ratio of largest property

Investment ratio of largest property

Investment ratio of largest property

15.4%

5.9%

5.4%

5.0%

4.5%

End of 14th FP (Sep. 2012)

After 15th FP public offering

86.0%

Mar. 2012
Sale of part of
HAMAMATSU
Plaza, etc.

End of 10th FP (Sep. 2010)

End of 15th FP (Mar. 2013)

After 16th FP public offering

Note: “Investment ratio of residences” and “investment ratio in largest property” above are based on acquisition price and are rounded to the nearest first decimal place. Note that the “largest property” refers to
HAMAMATSU Plaza.

7

Transition to Premium Public Offering and Generation of Capacity to Acquire Properties
Implemented a timely public offering with the market’s upward trend
16th FP Public Offering[Reference] 15th FP
Public Offering

Number of Newly Issued
Investment Units

For primary offering
21,430 units(as of date of document)

22,000 units(Including third-party allotment
portion)Offer Price per Unit
(NAV multiple)¥484,575(1.2 times)¥340,957(0.9 times)

Issue Price per Unit

¥467,677¥328,717

Total Issue Price

For primary offering¥10,022 million(as of date of document)¥7,231 million(Including third-party allotment
portion)【Changes in NAV Per Unit】

400,000¥398,843(Estimate)

200,000

April 4, 2013

September 6, 2012

Price Determination Date

April 15, 2013

September 19, 2012

Payment Date for Primary Offering

April 22, 2013
(Scheduled for May 23, 2013)

October 1, 2012
(October 26, 2012)

Funds for acquiring
12 residential properties

Funds for acquiring 5
residential properties

Use of Funds(yen)
500,000

300,000

Issuance Resolution Date

(Payment Date for Third-Party Allotment)）

Issue determined with price higher than NAV per unit

¥342,757

100,000¥374,277¥386,647¥390,628¥331,7860
End of Mar. 2011 End of Sep. 2011 End of Mar. 2012 End of Sep. 2012 End of Mar. 2013
After public(End of 11th FP) (End of 12th FP) (End of 13th FP) (End of 14th FP) (End of 15th FP) offering in 16th FP

Notes:1. “NAV” is calculated by subtracting total distributions in each period from the amount of market value net
assets based on appraisal values.
2. “NAV multiple” is the multiple of the investment unit price in relation to NAV per unit. The NAV as of the end of
the 15th FP (ended March 2013) is used for the 16th FP public offering while the NAV as of the end of the 14th
FP (ended September 2012) is used for the 15th FP public offering.
3. NAV per unit after the 16th FP public offering is an estimate based on the NAV as of the end of the 15th FP(ended March 2013) and takes into consideration the appraisal values of assets acquired after the 16th FP
public offering, the number of units issued in the primary offering portion of the 16th FP public offering andother factors.

Conservative Control of LTV and Maintenance/Improvement of the Cash Distribution Level
LTV has been brought down through the public offering

Limited the impact of dilution to a minimum:
Distribution level expected to be maintained and improved

LTV at end of 15th FP

LTV at end of 14th FP

LTV after 16th FP public offering

53.4%

52.1%

Approx. 51% (estimate)¥10,500¥10,459¥10,351(Forecast cash
distributions)(Actual cash
distributions)(Actual cash
distributions)
15th FP public
offering

Period ended Sep. 2012
(14th FP)

16th FP public
offering

Period ended Mar. 2013
(15th FP)

Generation of capacity to acquire
properties through public offering
Target LTV ceilingfor the time being

Less than 55%

Borrowing capacity
up to 55% LTV¥12 billion to ¥13 billion

Effectively utilize capacity to acquire properties with cashon hand and aim to maintain and increase the cash
distribution level

Period ended Sep. 2013
(16th FP)

8

Historical Investment Unit Price and Increase of Liquidity
Change in Market Value and Trading Volume

Trading value (units)

Market value

Steady expansion of market value due to public offerings in two consecutive periods

End of 13th FP(End of Mar. 2012)

After 15th FP public offering(as of end of Oct. 2012)

After 16th FP public offering(as of end of April, 2013)¥39.9 billion¥49.8 billion¥78.8 billion

Number of investment units
issue and outstanding

Number of investment units
issue and outstanding

Number of investment units
issue and outstanding

115,070 units

137,070 units

Contribution to increase of liquidity
Resolution of issuance:
Sep. 6, 2012
15th FP public offering(units)Resolution of issuance:
Apr. 4, 2013
16th FP public offering

100
Trading volume158,500 units

January to June 2012

July to December 2012

January to April 2013

Average per day

Average per day

Average per day¥73 million¥136 million¥389 million(approx. 227 units)(approx. 382 units)(approx. 799 units)(billion yen)

7,000
Market value

6,000

90
Market value: ¥80 billion

5,000

80

4,000

70

3,000

60
Market value: ¥50 billion

2,000

50

1,000

40

0

30
3/30

4/30

5/30

6/30

7/30

8/30

9/30 10/30 11/30 12/30 1/30

3/2

4/2

2013

2012

Investment Unit Price Before and After the Issuance Resolution Date for the 16th FP Public Offering
The Investment Corporation’s investment unit price has been stable at around the same level as the TSE REIT Index since the issuance resolution date and it has outperformed the TSE REIT Residential Index
Investment unit closing price

TSE REIT Index

TSE REIT Residential Index

120%
Apr. 4, 2013
Issuance
resolution date

Apr. 15, 2013
Price
determination date

Apr. 22, 2013
Payment Date forPrimary Offering

Status of performance
Issuance resolution date to pricedetermination date

110%

100%

90%
Investment unit priceInvestment unit priceInvestment unit price¥490,500¥497,000¥502,000

TSE
REIT
Index

0.1 points
Outperformed

TSE REIT
Residential
Index

4.6 points
Outperformed

80%
4/1 4/2 4/3 4/4 4/5 4/6 4/7 4/8 4/9 4/10 4/11 4/12 4/13 4/14 4/15 4/16 4/17 4/18 4/19 4/20 4/21 4/22 4/23 4/24 4/25 4/26 4/27 4/28 4/29 4/30
Note: With April 4, 2013, the issuance resolution date, as 100%, the above index is calculated using the closing price of the Investment Corporation’s investment unit price and the TSE REIT Index and TSE REIT Residential Index which areannounced by the Tokyo Stock Exchange, Inc.

9

Expansion of Asset Size through Diversification of Property Acquisition Routes and Acquisition Methods
The pace of expansion of the asset size is accelerating due to the utilization of diverse property acquisition routes and acquisition methods
as well as public offerings in the two consecutive periods
Utilization of the unique route of the Asset Management Company

Utilization of the Sekisui House Group’s pipeline
Set out for full-fledged expansion of the asset size centering on
properties developed by Sekisui House

Newly developed a property acquisition route through the AssetManagement Company’s own activities

 Acquired 5 residential properties on October 1, 2012
 Implemented first public offering after change of sponsors

 Acquired 3 residential properties on March 1, 2013

Total acquisition price Total appraisal value¥9,285 million



Average appraised
NOI yield¥9,438 million

Allocated funds procured through the issuance of investment
corporation bonds and such
Total acquisition price Total appraisal value

5.6%¥4,980 million¥5,410 million

Average appraised
NOI yield
6.0%

After 15th FP public offering

End of 15th FP

After 16th FP public offering

End of 14th FP

Asset size

Asset size

Asset size

Asset size

Compared to end of
14th FP

Compared to end of 14th FP

8.4% increase

Total acquisition price第12期末¥110.2 billion

16.9% increase

Feb. 2013

第12期末

Oct. 2012(66 properties)

May
2013

Compared to end of 14th FP

30.8% increase

第12期末

第12期末

Total acquisition priceTotal acquisition price¥119.4 billion¥128.7 billion¥144.1 billion(71 properties)(77 properties)(89 properties)

Total acquisition priceMar. 2013

Utilization of bridge fund
Exercising the preferential negotiation rights for the acquisition of 15 residential properties through investment in equity interest in silent partnerships in February 2012

 Advanced acquisition of 3 residential properties on February 8, 2013  Acquisition of 12 residential properties on May 1, 2013
 Implemented public offering for second consecutive period
 Allotted funds procured from new borrowing
Acquired 3 residential properties in February 2012
Average
Total acquisition Total appraisal
appraised
price
value
NOI yield

Acquired 12 residential properties in May 2013
Average
Total acquisition Total appraisal
appraised
price
value
NOI yield¥4,315 million¥15,335 million¥4,410 million

5.2%¥15,951 million

5.4%

Acquisition of total of 15 residential properties throughinvestment in equity interest in silent partnerships
Average
Total acquisition Total appraisal
appraised
price
value
NOI yield¥19,650 million ¥20,361 million
5.4%

Note: Please see pages 13 to 15 for the details of the acquired properties above.

10

Increase of Ratio of Residences in the Greater Tokyo Area
Realized further strengthening of the profit base by enhancing residence portfolio in the Greater Tokyo area
End of 14th FP (ended Sep. 2012)

Major Regional Cities

After 15th FP public offering

Major Regional Cities

Greater Tokyo /Major Urban Areas

25.6%

Major Regional Cities

Greater Tokyo /Major Urban Areas

27.3%

Greater Tokyo /Major Urban Areas

27.8%

67.4%

68.5%

Greater Tokyo /Other Urban Areas

End of 15th FP (ended Mar. 2013)

67.3%

Greater Tokyo

Greater Tokyo

Greater Tokyo /Other Urban Areas

74.4%

5.9%

72.7%

Greater Tokyo
Greater Tokyo /Other Urban Areas

5.3%

72.2%

4.9%
Of this, Tokyo’s 23 wards

Of this, Tokyo’s 23 wards

57.9%

58.1%

Of this,Tokyo’s 23 wards

58.6%

Major Regional Cities
Greater Tokyo /Major Urban Areas

24.4%

71.4%
Greater Tokyo /Other Urban Areas

4.3%

Greater Tokyo

75.6%

Increase of rate of residencesin the Greater Tokyo area

After 16th FP public offering

Assets acquired at the 16th FP public offering

Of this, Tokyo’s 23
wards

63.8%

Assets acquired in March 2013
Assets acquired in February 2013
Asset acquired at the 15th FP public offering

Number of residential properties
in Tokyo’s 23 wards

47 properties /Total of 81 properties

Properties owned at the end of the 14th FP

Note: The above percentages are calculated based on acquisition price and are rounded to the nearest first decimal place. Accordingly, the percentages may not add up to 100%.

11

Decrease of Average Property Age, Increase of Properties Close to Stations and Enhancement of Residential Types
Promoted greater quality of the portfolio though the acquisition of high-quality residential properties

5 years to less than 10 years

Diversification status bywalking distance to station(based on acquisition price)

10 years or more (Classification is based on property ages with the date of this document as the date of reference)
4.1% 8.7%

Averageproperty age
7.3 years

Averageproperty age

Averageproperty age

Average %property age

7.3 years

7.2 years

6.7 years

90.3%

90.3%

87.2%

76.4%

More than 3 min up to 5 minMore than 5 min up to 10 min

34.4

31.2

Within 10-min %walking distance

26.7%

87.0%
27.2
%

30㎡ to less than50㎡

10 More than 10 min(Classification is based on the walking distance from the properties to their nearest station)

88.2%

26.0
%

25.3
%

52.4
%

Average floorarea per unit

27.5%

89.7%
28.0
%

100㎡ or more (Classification based on the floor area of residential units)

0.3%
48.5
%

0.4%
22.6%

Average floorarea per unit

38.5㎡

36.6㎡
27.0%

31.0%

23.3%

23.9%

Average floorarea per unit

Within 10-min %walking distance

29.7% walking distance

87.1%

50㎡ to less than 100㎡

30.6

33.2
Within 10-min %

0.1%
20.6%

10.3%

11.8%

12.9%

Within 10-min%
walking distance

20.0

Decrease ofproperty age

3.6%

4.5% 5.2%

Less than 30㎡
Diversification status by floorarea (based on numberof leasable residential units)

After 16th FP public offering
Residential portfolio

5.0% 4.7%

13.0%

28.6%

End of 15th FP (ended Mar. 2013)
Residential portfolio

Increase of properties
close to stations

Less than 5 years

3 min or less

Note:

After 15th FP public offering
Residential portfolio

48.8%

Average floorarea per unit

37.9㎡

38.2㎡
27.6%

49.6
%

27.4%

Enhancement ofresidential types

Diversification status by property age(based on acquisition price)

End of 14th FP (ended Sep. 2012)
Residential portfolio

Percentages in the columns of “diversification status by property age,” “diversification status by walking distance to station” and “diversification status by floor area” above are rounded to the nearest first decimal place. Accordingly, thepercentages may not add up to 100%. Also, numbers for “average property age” are the weighted average of the property age using their investment ratios calculated with their acquisition price and numbers for “average floor area perunit” are based on the total leasable floor area of owned properties in each period as well as the total number of leasable units. In both, the numbers are rounded down to the nearest first decimal place.

12

Overview of Assets Acquired at the 15th FP Public Offering
Asset class / Numberof properties

Acquisition date

Total appraisal value

Total acquisition price

Average appraised NOI
yield

Average property age

SellerResidence / 5
properties

October 1, 2012

¥9,438 million¥9,285 million

5.6%

6.9 years

Sekisui House, Ltd., Sekiwa Real
Estate Chubu, Ltd.

Residence64

Prime Maison GINZA EAST

Residence65

Prime Maison TAKAMI
Acquisition price

Acquisition price¥5,205 million¥905 million¥715 million

Appraisal value

Appraisal value

Appraisal value¥5,265 million¥930 million¥723 million

Appraised NOI yield

Appraised NOI yield

Appraised NOI yield

5.0%

6.0%

6.2%

Tsukiji, Chuo-ku, Tokyo

LocationTakami, Chikusa-ku, Nagoya-city, Aichi

Closest station

Directly connected to Shintomicho Stationon the Tokyo Metro Yurakucho Line

Closest station

Approx. 3 min. walk from Ikeshita Stationon the Nagoya Municipal Subway
Higashiyama Line

CompletedFebruary 28, 2006

Completed

August 27, 2008

Property age

7.2 years

Property age

4.7 years

Prime Maison TERIHA

Location
Closest station
Completed
Property age

Prime Maison YADAMINAMI

Acquisition price

Location

Residence67

Residence66

Residence68

Location

Yadaminami, Higashi-ku, Nagoya-city,
Aichi

Closest station

Approx. 8 min. walk from Nagoya Domemae Yada Station on the Nagoya
Municipal Subway Meijo Line

Completed

July 18, 2007

Property age

5.8 years

Esty Maison HIGASHISHIRAKABE

Acquisition price

Acquisition price¥1,110 million¥1,350 million

Appraisal value

Appraisal value¥1,140 million¥1,380 million

Appraised NOI yield

Appraised NOI yield

6.9%

6.3%

Kashiiteriha, Higashi-ku, Fukuoka-city,
Fukuoka
Approx. 25 min. walk from Kashii Stationon the JR Kagoshima Main Line

Location

Yoshino, Higashi-ku, Nagoya-city, Aichi

Closest station

Approx. 5 min. walk from Morishita Stationon the Nagoya Railway Seto Line

August 31, 2005

CompletedFebruary 27, 2006

7.7 years

Property age

7.2 years

Notes: 1. “Appraisal value” is the appraisal value in the appraisal
reports by real estate appraisers as of the acquisitionof the property. Please see pages 49 to 51 for theperiod-end estimated values as of the end of the 15th
FP (ended March 2013). The same follows.
2. “Appraised NOI yields (average)” is calculated by
dividing the NOI based on the appraisal reports by realestate appraisers as of the acquisition of the property
by the acquisition price and is rounded to the nearest
first decimal place. The same follows.
3. “Property age” uses the date of this document as thereference date and “average property age” is theweighted average of the property age of the property
using its investment ratio calculated with its acquisition
price. In both, the numbers are rounded down to thenearest first decimal place. The same follows.

13

Overview of Assets Acquired in February and March of 2013
Asset class / Numberof properties

Acquisition date

Total appraisal value

Total acquisition price

Average appraised NOI
yield

Average property age

SellerResidence / 6
properties

February 8, 2013
March 1, 2013

¥9,820 million¥9,295 million

5.6%

5.6 years

GK AQUA 1, third party

Residence69

Esty Maison SENGOKU

Residence70

Esty Maison DAIZAWA

Residence71

Esty Maison TOGOSHI

Acquisition price

Acquisition price

Acquisition price¥1,075 million¥1,870 million¥1,370 million

Appraisal value

Appraisal value

Appraisal value¥1,130 million¥1,870 million¥1,410 million

Appraised NOI yield

Appraised NOI yield

Appraised NOI yield

5.3%

5.0%

5.3%

Location

Sengoku, Bunkyo-ku, Tokyo

Location

Daizawa, Setagaya-ku, Tokyo

LocationTogoshi, Shinagawa-ku, Tokyo

Closest station

Approx. 7 min. walk from Sengoku
Station on the Toei Mita Line

Closest station

Approx. 3 min. walk from Ikenoue
Station on the Keio Inogashira Line

Closest station

Approx. 9 min. walk from Togoshi
Station on the Toei Asakusa Line

Completed

August 6, 2009

CompletedFebruary 8, 2010

Completed

June 25, 2009

Property age

3.7 years

Property age

3.2 years

Property age

3.8 years

Residence72

Location
Closest station
Completed
Property age

Esty Maison KAWARAMACHI

Residence73

Esty Maison NISHITENMA

Residence74

Esty Maison SHIROKANEDAI

Acquisition price

Acquisition price

Acquisition price¥1,640 million¥1,440 million¥1,900 million

Appraisal value

Appraisal value

Appraisal value¥1,740 million¥1,540 million¥2,130 million

Appraised NOI yield

Appraised NOI yield

Appraised NOI yield

6.2%

6.1%

5.7%

Kawaramachi, Chuo-ku, Osaka-shi,
Osaka
Approx. 5-minute walk from
Hommachi Subway Station on the
Midosuji Line and the Chuo Line

Location

Nishitenma, Kita-ku, Osaka-shi, Osaka

Location

Kamiosaki, Shinagawa-ku, Tokyo

Closest station

Approx. 6-minute walk from MinamiMorimachi Subway Station on the
Sakaisuji Line and the Tanimachi Line

Closest station

Approx. 7-minute walk from Meguro
Station on the JR Yamanote Line,
Tokyu Meguro Line, etc.

October 17, 2006

Completed

November 30, 2007

Completed

September 16, 2003

6.5 years

Property age

5.4 years

Property age

9.6 years
14Overview of Assets Acquired at the 16th FP Public Offering
Asset class / Numberof properties

Acquisition date

Total appraisal value

Total acquisition price

Average appraised NOI
yield

Average property age

SellerResidence / 12
properties

May 1, 2013¥15,951 million¥15,335 million

5.4%

3.6 years

GK AQUA 1

Property nameEsty Maison
HIGASHISHINJUKU

Esty Maison MOTOAZABU

Esty Maison
TORITSUDAIGAKU

Esty Maison
MUSASHIKOYAMA II

Esty Maison NAKANO

Esty Maison SHINNAKANO

Location

Shinjuku, Shinjuku-ku, Tokyo

Motoazabu, Minato-ku, Tokyo

Tairamachi, Meguro-ku,
Tokyo

Koyama, Shinagawa-ku,TokyoChuo, Nakano-ku, Tokyo

Honcho, Nakano-ku, Tokyo

Completed

April 17, 2009

November 9, 2009

February 23, 2009

May 25, 2009

June 24, 2009

October 22, 2009

Acquisition price¥1,370 million¥1,170 million¥729 million¥844 million¥1,540 million¥847 million

Appraisal value¥1,420 million¥1,220 million¥760 million¥871 million¥1,580 million¥894 million

Appraised NOI yield

5.3%

5.2%

5.3%

5.3%

5.2%

5.4%

Property age

4.0 years

3.5 years

4.2 years

3.9 years

3.8 years

3.5 years

Property nameEsty Maison
NAKANOFUJIMICHO

Esty Maison TETSUGAKUDO

Esty Maison KOENJI

Esty Maison OSHIAGE

Esty Maison AKABANE

Esty Maison OJI

Location

Yayoicho, Nakano-ku, Tokyo

Matsugaoka, Nakano-ku,
Tokyo

Koenjiminami, Suginami-ku,
Tokyo

Narihira, Sumida-ku, Tokyo

Akabane, Kita-ku, Tokyo

Oji, Kita-ku, Tokyo

CompletedFebruary 16, 2009

October 21, 2009

March 10, 2009

April 23, 2010

November 25, 2009

July 6, 2010

Acquisition price¥863 million¥954 million¥958 million¥1,950 million¥2,730 million¥1,380 million

Appraisal value¥896 million¥1,050 million¥1,020 million¥2,060 million¥2,780 million¥1,400 million

Appraised NOI yield

5.4%

5.8%

5.4%

5.6%

5.4%

5.4%

Property age

4.2 years

3.5 years

4.1 years

3.0 years

3.4 years

2.8 years

Exterior

Exterior

Note: Because the names of the 12 properties above are scheduled to be changed as of June 1, 2013, their new names are indicated. Please see page 20 for details of this brand strategy.

15

Prime Maison YADAMINAMI

Ⅲ. Portfolio Management Status of the Fifteenth Fiscal
Period Ended March 31, 2013

プライムメゾン東桜
マスト博多
マスト博多

[Entire Portfolio] Occupancy Rate and NOI Yields
Monthly Occupancy Rates at a Glance
Residential

Retail

100%

98.3%

97.3%

96.6%

Total
97.7%

97.7%

95%

90%

85%

80%

75%
Mar.
2011

Apr.

May

End of 11th
Fiscal Period

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2012

Feb.

Mar.

Apr.

May

Jun.

End of 13th
Fiscal Period

End of 12th
Fiscal Period

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan.
2013

Feb.

Mar.

End of 15th
Fiscal Period

End of 14th
Fiscal Period

Occupancy Rates

NOI Yields

Fiscal period ended March 31, 2013 (15th fiscal period)

Fiscal period ended March 31,
2013 (15th fiscal period)

As of the end of the fiscal period

Average for the 15th fiscal period(Oct. 1, 2012 through March 31, 2013 )Residential

96.8%

96.0%

Retail

99.6%

99.6%

Total

97.7%

97.2%

5.2%
5.3%
5.2%

Notes: 1. “Occupancy Rates” indicated in the above graph describe the rate of total leased space to the total leasable space for the properties in each category held by the Investment Corporation as of the end of each month from March 2011 to March 20
2. The average occupancy rate for the 15th fiscal period ended March 31, 2013 in the above table indicates the average of occupancy rates as of the end of each month during the fiscal period ended March 2013.
3. The NOI yields in the above table are obtained by dividing the annualized NOI for the fiscal period ended Mar. 31, 2013 by the total acquisition price .
4. Percentage figures are rounded to the nearest first decimal place.

17

[Residential] Occupancy Status by Investment Area
Status of Average Occupancy Rate during the Fiscal Period by Investment Area
Greater Tokyo / Major Urban Areas

Greater Tokyo / Other Urban Areas

Major Regional Cities

Although occupancy was stagnant at the beginning of
the period, there was a recovery from the end of 2012
to the end of the 15th FP due to flexible leasing

While the impact of stagnant occupancy at someproperties could be seen on the whole, other properties
maintained high occupancy

Due in part to the contribution of properties incorporated
with fixed rent, occupancy was high and stable during
the period

Average occupancy rate during the 15th FP: 95.3%

Average occupancy rate during the 15th FP: 94.9%

Average occupancy rate during the 15th FP: 96.9%

Area data

Number of：properties
Total leasable area ：Number of leasable：
units

Number of：properties
Total leasable area ：Number of leasable：units

41 properties
Area data

96,398.45㎡
2,904 units

4 properties
13,985.89㎡

Area data

319 units

Number of：properties
Total leasable area ：Number of leasable：units

24 properties
84,346.58㎡
1,815 units

The average occupancy rate of residences overall during the 15th FP
increased 0.4 points from the previous period, rising to 96.0%

Change in Occupancy Rates by Investment Area Classification
Greater Tokyo / Major Urban Areas

100%

97.1%
96.3%

97.3%

97.1%

Greater Tokyo / Other Urban Areas

98.2%

Residences overall

97.7%

97.0%

96.8%

Major Regional Cities

97.4%

96.4%

96.8%
96.4%

96.2%
95%

96.7%

96.8%

95.9%

18

95.1%

95.3%

94.0%

93.1%

90%

Average occupancy rateduring the 12th FP ：95.4 %

Average occupancy rateduring the 13th FP ：96.7 %

Average occupancy rateduring the 14th FP ：95.6 %

Average occupancy rateduring the 15th FP ：96.0 %

85%
End of Mar. 2011(End of 11th FP)

End of Jun.

End of Sep. 2011(End of 12th FP)

End of Dec.

End of Mar. 2012(End of 13th FP)

End of Jun.

End of Sep. 2012(End of 14th FP)

End of Dec.

End of Mar. 201(End of 15th FP

Note: “Change in occupancy rates by investment area classification” shows the period-end occupancy rates with classification by investment area based on residential properties owned as of the end of the periods and are rounded to the nearest first decimal place. Also, the averageoccupancy rates during the periods are the average occupancy rates as of the end of the months during each period. Furthermore, “area data” shows figures for properties owned as of the end of the 15th FP (ended March 2013).

18

[Residential] Rent Trends in New Contracts and Contract Renewals
Rent Trends in New Contracts

Rent Trends in Contract Renewals
11th FP

12th FP

13th FP

14h FP

15h FP

No. of renew contract

483

427

704

616

657

¥411 thousand（138）

Total increase
in rent(number of cases)

(-)

(-)

(-)

¥7 thousand
(1)

（-）

-¥1,101
thousand(152)-¥1,514thousand（223）

Total decrease
in rent (numberof cases)-¥329
thousand(24)-¥63 thousand -¥59 thousand -¥34 thousand -¥40 thousand
（9）
(9)
(8)
(5)

-¥908
thousand-¥290
thousand-¥1,103thousand

Change in rent (net)-¥329
thousand-¥63 thousand -¥59 thousand -¥26 thousand -¥40 thousand

-1.7%

-0.5%

-1.7%

Rate of change
in rent against
previous rent

-0.5%

11th FP

12th FP

13th FP

14h FP

15h FP

451

486

488

499

547

Total increase¥229 thousand ¥521 thousand ¥508 thousandin rent
(52)
(138)
(143)
(number of cases)¥811
thousand(194)

Total decrease
in rent (numberof cases)-¥2,336
thousand(241)-¥1,706
thousand(212)-¥1,416
thousand(200)

Change in rent (net)-¥2,107
thousand-¥1,185
thousandRate of change
in rent against
previous rent

-4.1%

-2.2%

No. of new contract

Ratio of no rent change

-0.1%

-0.0%

-0.1%

Though the rate of change in rent is a slight negative compared to theprevious period (14th FP), there was no change in rent for the
majority of contract renewals

The range of rent decrease per case is shrinking even as the number of suchcases increases
14th FP: Approx. ¥7,248 per case ⇒ 15th FP: Approx. ¥6,792 per case
Ratio of decrease in rent
100%

-0.1%

Ratio of decrease in rent

Ratio of increase in rent
100%

Ratio of no rent change

5.0%

2.1%

1.1%

95.0%

97.9%

98.9%

Ratio of increase in rent
0.8%

1.4%

99.0%

98.6%

30.5%

75%

43.6%

41.0%

28.0%

29.7%

40.8%

53.4%

30.7%

50%

50%
34.0%

35.0%

25%

75%

25%
28.4%

29.3%

38.9%
25.2%

0.2%

11.5%

0%

0%
11th fiscal
period (ended
March 31, 2011)
Note:

12th fiscal
period (ended
September 30, 2011)

13th fiscal
period (ended
March 31, 2012)

14th fiscal
period (ended
September 30, 2012)

15th fiscal
period (ended
March 30, 2013)

11th fiscal
period (ended…

12th fiscal
period (ended…

13th fiscal
period (ended…

14th fiscal
period (ended…

15th fiscal
period (ended…

“Rate of change in rent against previous rent“ is calculated by dividing the total of net change in monthly rent for new contracts and contract renewals in each period by the total of previous rent, and are rounded to the nearest first decimal place. In addition, “ratio ofrenewals where rent decreased/increased/didn’t change” are the ratios of cases of decreased, no change and increased rents in the total new contracts or renewed contracts in the respective periods, and are rounded to the nearest first decimal place.
Accordingly, ratio totals may not add up to 100%. Furthermore, stores and offices in residential properties are not included in the calculations, nor are MAST HAKATA, Prime Maison MOMOCHIHAMA, Prime Maison TERIHA and Esty Maison HIGASHISHIRAKABE
for which there are master lease agreements and rent guarantee type lease agreements concluded with master lease companies.

19

[Residential] Other Measures
Measures to Enhance Leasing and Increase Tenant Satisfaction
Implemented measures such as renovation to increase property value and tenant satisfaction in order to secure long-term stable rent revenue

Introduction of Car Sharing

Renovation Work at Entrance

Interior Renovation Work
Esty Maison Ebisu II
As in the 14th FP, renovated interiors such as
kitchens, lighting, flooring and floor coating

Esty Maison KINSHICHO
Changed entrance of the property (many of the residents andpreviewers are male) to a design with a more solid and luxurious feel

 Renovation status

Example of renovation (front of entrance hall)• 14th FP → 7 units Renovated 11 of• 15th FP → 4 units
42 units• Generated a feeling of status
for the whole building byrenovating the entrance that
had become obsolete with age

 Example of renovation (kitchen ceiling cupboards)

5 Esty Maison properties below
Secured additional income while also
increasing convenience for tenants
•
•
•
•
•

Esty Maison MEGURO (10/1~)
Esty Maison SANGENJAYA (10/17~)
Esty Maison SHINAGAWA SEASIDE (2/20~)
Esty Maison HIGASHISHINAGAWA (2/20~)
Esty Maison KINSHICHO (2/20~)

Annual revenueof approx.

¥2 million
BeforeBeforeAfter

Establishing the Brand Image
Properties owned as of the end of the 15th FP (ended March 2013)
have been consolidated under the three following brand names
Plans for changeof names

12 residential properties acquired on May 1, 2013 ⇒Scheduled to be changed on June 1, 2013

Prime Maison

Esty Maison

Sekisui HouseGroup brandSekisui House
SI’s unique brandexpected

After

Change in the Contract Renewal Rate
90%
81.5%
80%

83.8%
80.3%

81.8%
79.2%

78.7%

81.2%

82.4% 81.6%
79.0%

74.1%
70%

Consistently maintained a renewal rate around 80%
60%

High-quality urban rental apartments
either planned and developed by
Sekisui House using their know-how orinvested in by Sekisui House due totheir apprehended value

MAST Series
Sekisui HouseGroup brand50%
5th FP 6th FP 7th FP 8th FP 9th FP 10th FP 11th FP 12th FP 13th FP 14th FP 15th FP

プライムメゾン武蔵野の杜

20

[Retail] Occupancy Status and Other Measures
Occupancy Status and Rent Renewal Trends of Retail Facilities
With the exception of 1 property, full occupancy has been maintained for the full year.
With the change of property management companies, we will aim to bring the entire portfolio to full occupancy as soon as possible.

Occupancy Status in the 15th FP ended March 2013
Name

End of 14th FP End of 15th FP Period average

HAMAMATSU Plaza

100%

100%

100%

b-town JINGUMAE II

100%

100%

100%

b-toss IKEBUKURO

 3 sections unoccupied as of the end of the period⇒ Change of property management company:
Focus on early leasing

RINKU HAGURAZAKI plaza

100%

100%

100%

b-town MINAMIAOYAMA

100%

100%

100%

Rent Revision Trends

KOJIMA NEW KAMIFUKUOKATEN

100%

100%

100%

b-toss IKEBUKURO

77.5%

66.3%

66.3%

 HAMAMATSU Plaza: Negotiations ongoing
as of the end of March 2013 with some tenants

Joy Square YUGAWARA

100%

100%

100%

Bell Plaza Shopping Center

100%

100%

100%

99.7%

99.6%

99.6%

Retail facilities total

 Joy Square YUGAWARA: Rent decreased for sometenants

Implementation of Strategic Leasing with Change of Property Management Companies
Reviewed property management strategy for retail facilities overall with the end of property management contract at b-toss
IKEBUKURO and changed property management companies at 4 properties
Collaboration with new property management companies: Promotion of measures to improve
comprehensive performance such as with further enhancement of retail facilities’ leasingsystems, improvement of operational efficiency and reduction of costs.
KOJIMA NEW KAMIFUKUOKATEN, Joy Square
YUGAWARA and Bell Plaza Shopping Center

New property management company:
Tokyo Biso Kogyo Corporation(Date of change: March 1, 2013)
Characteristics
・Sufficient experience in property managementbusiness with regional suburban retail facilities
・Service bases located across Japan including theareas of the 3 properties above

b-toss IKEBUKURO
New property management company:
Space Trust Co., Ltd.
(Date of change: March 1, 2013)
Characteristics
・50-year experience in building management business insophisticated commercial areas in Tokyo(Ginza, Shinjuku, Ikebukuro, etc.)
・Stations machine surveillance systems running 365
days a year and 24 hours a day in 6 locations in Tokyo

Expected to reduce
costs by approx.
¥2.5 million annually

Future leasing policy at b-toss IKEBUKURO
・Utilize the leasing know-how and store networkof the new property management company
Space Trust Co., Ltd. with its history ofmanagement of retail buildings in downtown
areas
・Implement agile leasing strategy such as withexpansion of target businesses and flexible
cooperation towards a variety of needs for
opening of shops

21

[Entire Portfolio] Changes in Unrealized Loss Ratio, Etc.
Changes in Unrealized Loss for the Entire Portfolio
The amount of unrealized loss for the entire portfolio decreased further from the end of the fiscal period ended September
30, 2012 (14th fiscal period), and the unrealized loss ratio improved-3,595
Entire Portfolio(million yen)
150,000-15%
Unrealized loss
value (right axis)

Unrealized loss ratio(left axis)-10.7%-12.1%

Period-end estimatedvalue (right axis)

Period-end book Value(right axis)-6,031-7,455-10%
101,904-12,344

103,627-11,082

107,112
98,22692,54589,559125,592

101,080

121,380

Decreased by 2.2
points compared to
the 14th fiscal period

90,771-7.6%-5%-4,211
Expected todecrease further
with the 16th FP
public offering(Note 2)100,000

50,000

-5.6%
-3.4%
0

0%
11th fiscal period end(Mar. 31, 2011)

12th fiscal period end(Sep. 30, 2011)57
properties

58
properties

13th fiscal period end(Mar. 31, 2012)

Partial sale of
HAMAMATSU
Plaza

60
properties

14th fiscal period end
15th fiscal period end
15th FP(Sep. 30, 2012)(Mar. 31, 2013) 16th FP
publicpublicoffering
offering
66
77
properties
properties

After acquisitionof properties at
16th FP public offering
89
properties

Notes:1. Period-end unrealized loss ratio = Period-end unrealized loss ÷ Period-end book value
Period-end unrealized loss = Period-end estimated value – Period-end book value
2. Based on estimates made with the acquisition price and appraisal value of assets acquired at the 16th FP public offering and taking into account the book value and estimated values at the end of the 15th FP.

Changes in Unrealized Loss by Asset Class
Residence-20%

Unrealized loss
ratio (left axis)

Unrealized loss
value (right axis)

Period-end bookvalue (right axis)

Period-end estimatedvalue (right axis)(million yen)

Retail120,000-18.1%

100,000-18.6%

80,000-14.6%-10%-11.3%

60,000-10.6%

-9.8%
-7.7%

20,000

-4.4%
0%

-2.0%

・Properties owned at the end of the 14th FP
The period-end estimated values increased
for 46 properties from the end of the 14th FP(42 residential and 4 retail)<Main factor> Decrease of cap rates

40,000-5.8%[Factors for the decreaseof the unrealized loss ratio]

・Properties acquired in the 15th FP
Acquisition through discount compared toappraisal values

0

11th FP end 12th FP end 13th FP end 14th FP end 15th FP end 11th FP end 12th FP end 13th FP end 14th FP end 15th FP end

22

Prime Maison TERIHA

Ⅳ. Financing Activities of the Fifteenth Fiscal Period
Ended March 31, 2013

プライムメゾン百道浜
プライムメゾン東桜
マスト博多
マスト博多

Overview of Financing Activities (1)Overview of the 15th Fiscal Period ended March 2013 and After
Procured funds for property acquisitions, refinancing and early repayment of borrowings using a variety of methods
such as public offerings, borrowings and issuance of investment corporation bonds
15th FP (ended March 2013)

Financial activities

Oct. 2012
Public offering¥7.2 billion
Oct. 1, 2012
Short-termborrowing

Use offunds¥2.3 billion

Oct. 1, 2012
Acquired 5 properties

16th FP (ending September 2013)
Feb. 28, 2013
Investment corporation bond issuanceof ¥6.0 billion

Feb. 1, 2013
Acquired new credit rating(JCR：AA-)
Feb. 8, 2013
Long-term
borrowing¥4.5 billion

Feb. 28, 2013
Long-term borrowing

Mar. 1, 2013
Long-term borrowing¥7.3425 billion¥3.0 billion(7 and 5 years, longest since listing)(4 years)Interest fixed with swap

Interest fixed with swap

Interest fixed with swap

Feb. 8, 2013

Feb. 28, 2013 Refinancing of borrowings

Acquired 3 properties(2 years 6 months, floating/
2 years 5 months, floating)(approx. 6 years 1 month)Mar. 1, 2013
Acquired 3 properties

April 2013
Public offering¥10.0 billion

May 1, 2013
Short-termborrowing

Apr. 25, 2013
Improvement of credit rating(R&I：A⇒A+)¥4.9 billion

May 1, 2013
Acquired 12 properties

Mar. 7, 2013
Early repayment of borrowings

Since the 15th FP to the date of this document, ¥17.2 billion of equity funds and ¥28.0 billion of debt funds(¥22.0 of borrowings and ¥6.0 billion of investment corporation bonds) have been procured

Average Borrowing Cost Rateduring the fiscal period (Notes 1 and 2)[Reference] Spread of Long-Term Loans Payable of around 5 Years after Change of Sponsors

3.0%

2.0%

2.45%

Realized further reduction of borrowing
cost rate including borrowing related
expenses

2.47%
1.97%

1.61%
1.0%

1.56%

1.47%

1.38%

Drawdown
Date

March 2,
2012

March 8,2012

August 2, 2012

Loan
Amount¥1.5 billion¥5.0 billion¥3.882billion¥2.705billion

Loan Term

Approx. 5
years

Approx. 5
years

Approx. 6
years 7monthsApprox. 5
years 1month

Spread

0.70%

0.70%

0.70%

0.60%

February 8,
2013
¥4.5
billionFebruary 28, 2013¥5.2425
billion7 years
Approx. 6 years
Longest since
1 monthlisting

0.50%

0.55%

¥2.1
billion5 years

0.45%

0.0%
9th FP

10th FP 11th FP 12th FP 13th FP 14th FP 15th FP

The spread is trending downwards due to the effects of sponsor credit, financial environment, etc.

Notes: 1. Average borrowing cost rate during the fiscal period = Period borrowing cost (annualized) ÷ Balance of period average interest-bearing debt
Borrowing cost = Interest expenses + Borrowing related expenses + Interest expenses on investment corporation bonds
2. Rounded to the nearest second decimal place.

24

Overview of Financing Activities (2)Stable Financial Standing Backed by Credit RatingWith positive acknowledgement of the Investment corporation’s business results, a new long-term issuer rating of “AA-” wasacquired from JCR in February 2013 and the issuer rating from R&I improved to “A+” in April 2013

Acquisition of New Credit Rating

Improvement of Existing Credit Rating

Japan Credit Rating Agency, Ltd. (JCR)

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

as of February 1, 2013

■Long-term issuer rating

as of April 25, 2013

■ Issuer rating

AA-

A[Rating outlook: Positive][Rating outlook: Stable]

A+→[Rating outlook: Stable]■ Main reasons for rating■Main reasons for rating・ New property acquisitions are steadily being made from sponsors as well asfrom the outside and the quality and size of the portfolio is improving
significantly
・ Leverage is being controlled with two public offerings in the process of
expansion of the asset size

・ Acknowledgement of the strengthening of the Investment Corporation
through sponsor commitment
・ A backup system for external growth and support system for internal
growth are expected going forward

Issuance of Investment Corporation Bonds
Issued investment corporation bonds with low procurement cost in a positive environment for issuance of bonds
Name

Term

Issue date

Maturity

Issue value

SpreadRate

First Series Unsecured
Investment Corporation Bonds

5 years

February 28, 2013

February 28, 2018

¥4.0 billion

0.28%

0.63% / year

Second Series Unsecured
Investment Corporation Bonds

7 years

February 28, 2013

February 28, 2020

¥2.0 billion

0.48%

1.00% / year

With the first issuance of investment corporation bonds after the change of sponsors,
realized lowest coupon level compared to past investment corporation bonds of the same termWith the good supply and demand in the investment corporation bond market, the issuance was launched in a time of low interest rates. The investment
corporation’s business results were acknowledged and in the issuance of both the 5-year and 7-year bonds we realized the lowest coupon level compared topast bonds of the same terms as well as the tightest spread in year 201225

Overview of Financing Activities (3)Continued to promote lengthening of borrowing periods while maintaining optimal balance between fixed and floating rates such as byutilizing interest rate swap agreements

Ratios of Floating and Fixed Interest Rates (Notes 1 and 2)
Floating

Ratios of Short-Term and Long-Term Borrowings (Notes 1 and 2)
Short-term

Fixed

11.2%

16.9%

24.0%

28.3%

34.5%

80%

88.8%

83.1%

71.7%

of this, long-term borrowings scheduled to be repaid within 1 year)

6.4%
25.4%
23.8%
100.0%

100.0%

97.5%

13th fiscal period end(Mar. 31, 2012)

14th fiscal period end(Sep. 30, 2012)

60%

65.5%

(

25.8%

80%

60%
40%

Long-term (Note 3)
2.5%

100%

100%

93.9%
93.6
%

40%

20%

20%

0%

0%
13th fiscal period end(Mar. 31, 2012)

14th fiscal period end(Sep. 30, 2012)

15th fiscal period end As of date of document(Mar. 31, 2013)

15th fiscal period end As of date of document(Mar. 31, 2013)

Continued policy of lengthening of borrowing periods of long-term debt ⇒Setting repayment dates so that the borrowing periods are in
range of around 3 to 7 years(Note 4 and 5)

Diversification Status of Repayment Dates (Note 4)

Average Remaining Period of Borrowings
Realized further lengthening of remaining periods(years)3.0(million yen)

16,000

Short-term borrowing

・・・ Refinancing during the period ended Mar. 2013
・・・ New borrowings during the period ended Mar. 2013

Investment corporation bonds

・・・ New borrowings on May 1, 2013

3.1 years

2.9 years

2.5

14,0004,900Longest borrowing period since the listing of theInvestment Corporation (7 years)

12,0002.3 years

2.0

2.0 years 2.0 years

2.1 years

10,000(earlyrepayment)）

8,000

1.5
1.5 years

2,000

6,000

1.0

10,1374,000

0.5Long-term borrowing (Note 3)

As of date of document

8,000

9,500

9,509

8,382

2,000

0.0

4,000

6,650

1.0 year

2,705

2,850

5,242

2,100

0
Period ended
Mar. 2010
Sep. 2010

Mar. 2011

Sep. 2011

Mar. 2012

Sep. 2012

As of date ofMar. 2013
document

Period ended
Period ending
Mar.
Sep.
Mar.

Sep.

Mar.

Sep.

Mar.

Sep.

Mar.

Sep.

Mar.

Sep.

Mar.

Sep.

Mar.

Notes: 1. The above ratios are rounded to the nearest first decimal place.
2013
2013
2014
2014
2015
2015
2016
2016
2017
2017
2018
2018
2019
2019
2020
2. Ratio against the total interest-bearing debt.
3. Includes long-term borrowings scheduled to be repaid within one year.
4. Does not include interest-bearing tenant leasehold and security deposits.
5. The figures are the result of calculation based on the weighted average using the remaining period from each date to the repayment (redemption) dates of loans and investment corporation bonds, and their balances and rounded down
to the nearest first decimal place.

26

Overview of Financing Activities (4)Overview of Interest-Bearing Debt

80,000

Average Interest Rateon Procurement(Note 2)

Balance as of date of
document-%¥4,900 million

65,075 million

1.2%¥65,075 million

358 million

2.0%¥347 million

Investment corporation bonds

6,000 million

0.8%¥6,000 million

Total interest-bearing debt

71,434 million

1.1%¥76,322 million

Balance at end of
15th FP
Short-term loans- million

Long-term loans (Note 3)
Interest-bearing security deposits

LTV (Note 4)

Interest-bearing security deposit
Long-term loans
Short-term loans(million yen)

347
358

6,000

6,000

428

60,00046,93840,00046,93842,23320,00018,137

15,342

53.4%

Investment corporation bonds
Current portion of long-term loans

18,137
4,900

1,500

0

Sep. 30, 2012(End of 14th FP)

Loans Payable Outstanding by Financial Institution

Mar. 3, 2013(End of 15th FP)

As of date of document

As of date of document
Financial Institution

Outstanding Balance

Mizuho Corporate Bank, Ltd.

¥14,732 million

21.1%

Sumitomo Mitsui Banking Corporation¥14,573 million

20.8%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥6,250 million

8.9%

Sumitomo Mitsui Trust Bank, Limited¥5,300 million

7.6%

Mizuho Trust & Banking Co., Ltd.

¥5,234 million

7.5%

Mitsubishi UFJ Trust and Banking Corporation¥4,642 million

6.6%

Development Bank of Japan Inc.

¥4,141 million

5.9%

The Norinchukin Bank

¥3,852 million

5.5%

Resona Bank, Limited.

¥3,650 million

5.2%

Aozora Bank, Ltd.

¥1,800 million

2.6%

The Senshu Ikeda Bank, Ltd.

¥1,000 million

1.4%

The 77 Bank, Ltd.

¥1,000 million

1.4%

The Hiroshima Bank, Ltd.

¥1,000 million

1.4%

The Yamaguchi Bank, Ltd.

¥1,000 million

1.4%¥800 million

1.1%

Shinkin Central Bank

¥500 million

The Shizuoka Bank, Ltd.
The Bank of Fukuoka
Total debt
Notes:

Solid bank formation centering on leading domestic
financial institutions

Share

0.7%

¥500 million

0.7%¥69,975 million

100.0%

1.4%

1.4%

1.1%

0.7%

1.4%

Mizuho Corporate Bank, Ltd.

0.7%

Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

1.4%

Sumitomo Mitsui Trust Bank, Limited

2.6%

Mizuho Trust & Banking Co., Ltd.

21.1%

5.2%

Mitsubishi UFJ Trust and Banking Corporation
Development Bank of Japan Inc.

5.5%

The Norinchukin Bank
Resona Bank, Ltd.

5.9%

Aozora Bank, Ltd.
The Senshu Ikeda Bank, Ltd.

20.8%

6.6%

The 77 Bank, Ltd.
The Hiroshima Bank, Ltd.

7.5%

The Yamaguchi Bank, Ltd.

7.6%

8.9%

Shinkin Central BankThe Shizuoka Bank, Ltd.
The Bank of Fukuoka

1.Concerning figures in the graphs and tables above, amounts of less than one million yen are rounded down and percentage figures are rounded to the nearest first decimal place. Accordingly, the ratio totals may not add up to 100%.
2. The average interest rate on procurement is the weighted average of applied interest rates as of March 31, 2013, and the figures are rounded to the nearest first decimal place.
3. Includes current portion of long-term loans payable.
4. LTV = Period-end total interest-bearing debt / Period-end total assets (Interest-bearing debt = Borrowings + Investment corporation bonds + Interest-bearing leasehold and security deposits)

27

Esty Maison HIGASHISHIRAKABE

Ⅴ. Forecasts for the Sixteenth Fiscal Period Ending
September 30, 2013 and Current Management Policy

プライムメゾン東桜
マスト博多
マスト博多

Forecasts for the Sixteenth Fiscal Period
Fiscal Period Ended
Mar.31, 2011(182 days)

Fiscal Period Ended
Sep. 30, 2011(183 days)

Fiscal Period Ended
Mar.31, 2012(183 days)

Fiscal Period Ended
Sep. 30, 2012(183 days)

Fiscal Period Ended
Mar.31, 2013(182 days)

Fiscal Period Ending
Sep. 30, 2013(183 days)(Forecast)

Operating revenue (million yen)

3,462

3,533

3,705

3,567

4,038

4,679

Operating income (million yen)

1,655

1,622

1,600

1,663

1,908

2,183

Ordinary income (million yen)

1,144

1,156

1,165

1,193

1,435

1,682

Net income (million yen)

1,126

1,155

1,164

1,191

1,433

1,680

Cash distributions per unit (yen)9,793

10,045

10,117

10,351

10,45910,500<Assumptions for forecast of fiscal period ending September 30, 2013>◆ Assets under management: 89 properties owned as of May 1, 2013 ◆ Noncurrent asset tax, etc. that will be allocated as expenses
related to rent business: Approx. ¥236 million◆ Management fees: Approx. ¥403 million◆ Depreciation and amortization: Approx. ¥1,015 million
Notes:◆ Interest expenses, loan origination fees, etc.:
Approx. ¥479 million◆Number of investment units issued and outstanding:160,000 units

1. Amounts less than the indicated denomination are rounded down.
2. The above figures are calculated based upon certain assumptions as of May 16, 2013. Actual operating revenue, operating income, ordinary income, net income and cash distributions per unit may differ as a result of subsequent acquisitions or sales of real estate, trends in real estatemarkets, changes in the operating environment or other conditions affecting the Investment Corporation. The above forecasts are not intended to be guarantees of business results or cash distributions.
3. “Number of investment units issued and outstanding” above is the addition of maximum number of investment units to be newly issued through the public offering in the 16th FP resolved on April 4, 2013 of 22,930 units to the number of investment units issued and outstanding as of the endof the 15th FP (ended March 2013) of 137,070 units.

Operating Revenue, Operating Income and Net Income(million yen)
5,000

Operating revenue

Operating income

Net income

4,500

Cash Distribution Per Unit(yen)
10,000

4,000
3,500

8,000

3,000
2,500

6,000

2,000
1,500

4,000

1,000
500

2,000

0
Period ended
Mar. 2011

Period ended
Sep. 2011

Period ended
Mar. 2012

Period ended
Sep. 2012

Period ended
Mar. 2013

Period ending
Sep. 2013(forecast))

0
Period ended
Mar. 2011

Period ended
Sep. 2011

Period ended
Mar. 2012

Period ended
Sep. 2012

Period ended
Mar. 2013

Period ending
Sep. 2013(outlook)29

Progress of the Investment Corporation’s Growth Strategy and the Current Management Policy (1)Aggressively promoting the Investment Corporation’s growth strategy in progress given the resultsof the 3 years following the change of sponsors

Strategic Target

Current Management Policy
Promotion of Phase II of the Investment Corporation’s growth strategy

Aim for an asset size of ¥200
billion while having regard to the
cash distribution level

 External growth geared around high-quality rental housing developed by
Sekisui House Utilization of the Sekiwa Real Estate Group’s nation-wide network
 Conservative control of LTV with a ceiling target less than 55% level (steady
LTV around 53%)

Initiatives after Change of Sponsors
 Expansion of the asset size through public offerings in two consecutive
periods
 Reduced concentration of risk in retail facilities and HAMAMATSU Plaza Constructed a firm financial base backed by strong ratings

Announced the transition from Phase I to Phase II in November 2011
12th FP (ended September 2011): Cash distribution level recovered to the ¥10,000 level

Announced growth strategy currently underway in May 201030

Progress of the Investment Corporation’s Growth Strategy and the Current Management Policy (2)Enhancement of Opportunities for Acquiring High-Quality Residential Properties in the Future

Retail facilities,
etc.

Sekisui House

Exchangeof opinion

Completed properties

Under construction (confirmed)

3 properties 168 units total

7 properties 666 units total

Properties in theplanning stage

Demandinformation

Development Department
Supplyinformation

Development by Sekisui House The Investment Corporation has no specific plans to acquire any of the properties below as of the date of this document. Furthermore, images of properties that are “under construction” arerenderings based on the design documents and may differ from the actual buildings. Also, “total units” includes units that are not for residential purpose.

1
property

Sekisui House SI AssetManagement

135

Real Estate Investment
Department

units
total

Prime Maison WASEDA(Shinjuku-ku, Tokyo)
60 units total(Completed November 2012)

Securing preferential negotiation rights

Residence

After change of sponsors, all 11 Prime Maison properties planned by Sekisui House that are either completed or underconstruction or are in the planning stage are located in Greater Tokyo / Major Urban Areas (of these, 10 are in Tokyo’s 23
wards)

Overview of agreement
concerning sale preferential
negotiation right<Counterparty>
GK AQUA 2<Agreement execution date>

March 29, 2013
<Preferential
negotiation right validity
expiration date>

April 9, 2016
Currently there
are no plans for
new acquisitions

Prime Maison
HATCHOBORI(Chuo-ku, Tokyo)
45 units total

Prime Maison
JINBOCHO(Chiyoda-ku, Tokyo)
63 units total(Completed November 2012)(Completed March 2013)(Tentative name)Prime Maison
MORISHITA(Koto-ku, Tokyo)
86 units total(Tentative name)Prime Maision
KITASHINAGAWA(Shinagawa-ku, Tokyo)
50 units total(Tentative name)Prime Maison
YOKOHAMA NIHONODORI(Yokohama-shi, Kanagawa)
137 units total

Obtained the rights for preferential negotiations with regard to the acquisition for a set time period (totalof minimum acquisition price: ¥13,840 million yen) for 2 residential properties in Tokyo’s 23 wards.
Property name

LIETOCOURT OSHIMA

Location

Property name

LIETOCOURT KINSHICHO

Koto-ku, Tokyo

Location

Sumida-ku, Tokyo

Asset class / Total
units

Residence / 316 units

Asset class / Total
units

Residence / 295 units

Minimum acquisition
price¥7,120 million

Minimum acquisition
price¥6,720 million

Appraised NOI yield

5.5%

Appraised NOI yield

5.4%

Appraisal value¥ 7,540 million

Appraisal value¥6,920 million

Note: “Appraisal value” is the appraisal value by real estate appraisers valued as of March 1, 2013. Also, “appraised NOI yield” is calculated by dividing each asset’s appraised NOI basedon appraisal reports by real estate appraisers by the minimum acquisition price and are rounded to the nearest first decimal place.

Focus on stable management of owned properties
Construct a full-occupancy structure at an early stage

Watch economic conditions, the real estatemarket, etc. and depending on the situation consider
replacement with new residential properties
31

Progress of the Investment Corporation’s Growth Strategy and the Current Management Policy (3)Collaborative Structure with the Sekiwa Real Estate Group
Collaborative structure for supplying properties

History of property acquisitions
from the Sekiwa Real Estate GroupMAST HAKATA

Acquired in February
2012

Esty Maison
HIGASHISHIRAKABE

Sekiwa Real Estate Group・ Fully funded by Sekisui House, the core is the 6 Sekiwa Real
Estate companies conducting business nationwide

・ Expand Sekisui House’s real estate department (real estate

Collaborative structure for operation and management of residences

Entrustment of property management
to the Sekiwa Real Estate Groupsale and real estate leasing business)

18 out of 81 properties

Sekiwa Real
Estate, Ltd.

Sekiwa Real Estate
Tohoku, Ltd.

・Sekiwa Real Estate, Ltd. 5 properties
・Sekiwa Real Estate Chubu, Ltd. 6 properties
・Sekiwa Real Estate Kansai, Ltd. 4 properties
・Sekiwa Real Estate Kyushu, Ltd. 3 properties

Sekiwa Real Estate
Chubu, Ltd.

Sekiwa Real Estate
Kansai, Ltd.

Sekiwa Real Estate
Chugoku, Ltd.

Sekiwa Real Estate
Kyushu, Ltd.

Acquired in October 2012

Future policy
Strengthen gathering of property
information

Utilize the pipeline that extends not
only to the Greater Tokyo area but
also to Major Regional Cities

Future policy

indicate parties to which property management is entrusted or
parties for which pipeline support agreements are concluded.

Consolidation of property management
Performance of
the Sekiwa Real
Estate GroupThe real estate leasing department has records of management of 506 thousand
units (Note 1) nationwide centering on rental housing of Sekisui House
Occupancy rate for properties leased as Sha-Maison (Note 2): 96.0% (Note 1)

Notes: 1. Figure is as of end of January 2013.
2. “Sha-Maison” refers to the rental housing brand where construction is undertaken by Sekisui
House and management by the Sekiwa Real Estate Group.

Policy of consolidating property management
to the Sekiwa Real Estate Group in order tomaintain and improve the performance ofowned properties in the mid to long term.

Policy of Consolidating Property Management to the Sekiwa Real Estate Group
Entrustment of property management of residential properties
Property management of residential properties owned as ofthe date of this document is entrusted to 13 companies
・Joint Property Co., Ltd.
・Sekiwa Real Estate Group (4 companies)
・Pacific Development & Management Co., Ltd.
・Haseko Livenet, Inc.
・Miyoshi Real Estate Co., Ltd.
・Mitsui Fudosan Housing Lease Co., Ltd.
・4 other companies

29 properties
18 properties
14 properties
9 properties
3 properties
2 properties
5 properties

Policy of consolidating the property management of about 35 existing
residential properties to the Sekiwa Real Estate Group centering on theproperties entrusted to Joint Property Co, Ltd. (Note)

Planning to utilize the comprehensive strengths of the
Sekisui House Group
Period of change (scheduled)

16th FP (ending September 2013) to 17th FP (ending March 2014)
Note: Procedures under the Rules for Transactions with Interested Parties must be followed.

32

Progress of the Investment Corporation’s Growth Strategy and the Current Management Policy (4)Policy for Using Cash on Hand
Approach to the examples

Example of utilization of cash on hand①

Capital expenditure for owned
properties

・ Implement on a planned basis to maintain and improve thecompetitiveness of properties②

Acquisition of new assets

・ Both ② and ③ on the left have positive effects on cash
distributions
・ ② will be prioritized in the current low-interest rate environment③

Repayment of interest-bearing debt

・ The need for ③ will considered going forward while watching thedebt market④

Payment as distributions in excess ofearnings⑤

Acquisition of investment units ofInvestment Corporation

・ Consider the efficiency for the future in accordance witheconomic conditions, performance of the J-REIT market, theInvestment Corporation’s management status, etc.

Period of implementation
Implement as appropriate basedon plans for repairs
Consider as part of cash
distributions management andselect the effective timing

No plans as of now(after amendement of Investment Trust Act)

Effectively utilize cash on hand that was set aside as internal reserves due to the posting of depreciation and amortization andaim to realize a growth strategy for the maximization of unitholder value

Overview of Cash on Hand Set Aside as Internal Reserve
Cash on hand to be set aside as internal reserves due todepreciation and amortization

Period ending
September 2013
(16th FP)

Expected depreciation andamortization¥1,015 million

Due to the posting of depreciation and amortization which
does not entail cash expenditures, an annual amount of
about ¥2 billion of rent revenue – real estate and otherrevenue is expected to be set aside as internal reserves[Image based on the assumptions for the period ending September 2013 (16th FP)]
Note: The figures below are calculated under the assumptions on page 29.

Total of rent
revenue – realestate and otherrevenue

Total of expenses
related to rent
business and otherexpensesOf¥2,999
this, depreciation
millionand amortization¥1,015 million¥4,679 million
Net income¥1,680 million

FFO ¥2,695 million
Set aside as internal reserves as
there is no cash expenditureFunds for cash distributions¥10,500 per unit

33

Esty Maison KAWARAMACHI

Ⅵ. Appendix

エスティメゾン笹塚
プライムメゾン東桜
マスト博多
マスト博多

Balance Sheets (1)14th fiscal period(As of September 30, 2012)
Million yen

15th fiscal period(As of March 31, 2013)

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
Prepaid expenses
Deferred tax assets
Consumption tax receivable
Other
Allowance for doubtful accounts

1,747
4,327
29
147
0
124
24
-1

Total current assets

6,399

Noncurrent 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
Total property, plant and equipment
Intangible assets
Leasehold rights in trust
Other
Total intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total noncurrent assets

49,910-6,70843,202
380
-99
281
553
-180
372
62
-22
39
63,054
106,949
162
3
165
195
235
128
100
660
107,775

2,636
4,636
61
117
0
60
13
-1
5.6

7,523

93.7

59,523-7,51752,005
470
-113
357
726
-204
522
69
-27
41
72,505
125,432

0.1

160
3
163

0.6
94.4

159
235
188
104
688
126,283

889
308
32
-29
-0
-64
-11
0
5.6

1,124

17.6

93.7

9,612
-809
8,802
90
-13
76
173
-23
149
7
-5
2
9,451
18,482

17.3

0.2

-2
-0
-2

-1.6

0.5
94.4

-35
59
3
27
18,507

4.2
17.2

Deferred assets
Investment corporation bond issuance costs-

Total deferred assets

-

-

36

0.0

36

-

114,174

100.0

133,843

100.0

19,66917.2

Total Assets

36

36

35

Balance Sheets (2)14th fiscal period(As of September 30, 2012)
Million yen

15th fiscal period(As of March 31, 2013)

Percent of total

Million yen

ChangePercent of total

Million yen

Period on period (%)

Liabilities
Current liabilities
Operating accounts payable

168

233

65

Short-Term loans payable

1,500

-

-1,500Current portion of long-term loans payable

15,342

18,1372,794

Accounts payable – other

347

382

34

Accrued expenses

70

78

8

Income taxes payable

1

1

-0

Advances received

359

383

23

6

13

Other
Total current liabilities

17,79615.6

19,229

7
14.4

1,433

8.1

Noncurrent liabilities
Investment corporation bonds

-

6,000

6,000

Long-term loans payable

42,23346,938

4,705

Tenant leasehold and security deposits in trust

2,431

2,487

Total noncurrent liabilities

44,66439.1

55,42541.4

10,761

24.1

Total Liabilities

62,46054.7

74,65555.8

12,19419.5

50,52344.3

57,755

43.1

7,231

14.3

56

Net Assets
Unitholders’ equity
Unitholders’ capital
Surplus
Unappropriated retained earnings (undisposed loss)

1,191

Total surplus

1,191

1.0

1,433

1.1

242

20.4

Total unitholders’ equity

51,71445.3

59,188

44.2

7,474

14.5

51,71445.3

59,188

44.2

7,474

14.5

114,174

100.0

133,843

100.0

19,66917.2

Total Net Assets
Total Liabilities and Net Assets

1,433

36

Statements of Income
14th fiscal period
from April 1, 2012
to September 30, 2012
Million yen

15th fiscal period
from October 1, 2012
to March 31, 2013

Percent of total

Million yen

ChangePercent of total

Period on period(%)

Million yen

Operating revenue
Rent revenue - real estate
Silent partnership distribution
Total operating revenue

3,562

4,032

4

5

3,567

100.0

4,038

470
1
100.0

471

13.2

Operating expenses
1,528

1,745

217

Asset management fee

Expenses related to rent business

219

246

27

Asset custody fee

11

10

-0

Administrative service fees

25

25

-0

Directors’ compensations

3

3

-

Provision of allowance for doubtful accounts

0

0

-0

Other operating expenses

114

Total operating expenses

1,903

53.4

2,130

52.7

227

11.9

1,663

46.6

1,908

47.3

244

14.7

Operating income

98

-15

Non-operating income
Interest income

00Reversal of distributions payable

0

0

0

Interest on refunds

-

1

1

Refund on noncurrent asset tax, etc.

-

Total non-operating income

0

-0

1
0.0

3

1
0.0

2

262.8

Non-operating expenses
366

373

6

Interest expenses on investment corporation bonds

Interest expenses

-

3

3

Amortization of investment corporation bond issuance costs

-

0

0

Borrowing related expenses

62

63

1

Investment unit issuance expenses

39

31

-7

Other

2

2

Total non-operating expenses

0

471

13.1

476

11.8

4

0.9

Ordinary Income

1,193

33.5

1,435

35.5

242

20.3

Income before Income Taxes

1,193

33.5

1,435

35.5

242

20.3

Income taxes - current

2

Income taxes - deferred-0

Total income taxes

2

0.1

2

0.0

-0

-0.6

1,191

33.4

1,433

35.5

242

20.4

33.4

1,433

35.5

242

Net Income
Retained earnings brought forward
Unappropriated Retained Earnings (undisposed loss)

2
0

0
1,191

-0
0

0

-0
20.4

37

Statements of Cash Flows / Cash Distributions
Statements of Cash Flows
14th fiscal period
from April 1, 2012
to September 30,
2012
Million yen

14th fiscal period
from April 1, 2012
to September 30,
2012
Million yen

15th fiscal period
from October 1,
2012 to March
31, 2013
Million yen

Net cash provided by (used in) operating activities

15th fiscal period
from October 1,
2012
to March 31, 2013
Million yen

Net cash provided by (used in) investment activities

Income before income taxes

1,193

1,435

-9,600-19,304

Depreciation and amortization

727

854

Purchase of intangible assets in trust

-0

-

-

0

Purchase of investment securities-0-

Proceeds from refund of investment securities

10

35

6

-

155

214

Amortization of investment corporation bond issuancecosts
Increase (decrease) in allowance for doubtful
accounts

Purchase of property, plant and equipment in trust

0-0Interest income-0-0Interest expenses

366

377

Decrease (increase) in operating accounts receivable

103

-32

Decrease (increase) in prepaid expenses

-29

29

Proceeds from repayments of lease and guarantee
deposits
Proceeds from tenant leasehold and security deposits intrust received
Repayments of tenant leasehold and security deposits
in trust received

-173

-158

-6

-3

-0

-

-9,608-19,216

Decrease (increase) in consumption tax receivable

-124

64

Decrease (increase) in investments and other assets

Increase (decrease) in operating accounts payable

16

54

Other

Increase (decrease) in accounts payable - other

-48

29

Net cash provided by (used in) investment activities

Increase (decrease) in consumption taxes payable

-139

-

Increase (decrease) in advances received-623

Decrease (increase) in long-term prepaid expenses

5

-58

Other
SubtotalInterest income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities

Net cash provided by (used in) financing activities
Proceeds from short-term loans

1,500

2,300

-

-3,80031

49

Repayments of short-term loans payable

2,094

2,827

Proceeds from long-term loans payable

6,587

14,8420

0

Repayments of long-term loans payable-6,587-7,342

-374

-368

-

5,962

-2

-2

Proceeds from the issue of investment corporation
bonds

1,718

2,456

Proceeds from the issue of investment units

-

7,185

-1,164-1,190

Dividends paid
Other
Net cash provided by (used in) financing activities

-2

-0

333

17,957

Cash Distributions
14th fiscal period
from April 1, 2012
to September 30,
2012
Yen

15th fiscal period
from October 1, 2012
to March 31, 2013

1,191,116,731

1,433,616,707

II Cash distributions

1,191,089,570

1,433,615,130(10,351)（10,459）

27,161

1,577

III Retained earnings brought forward-7,557

1,197

Cash and cash equivalents at beginning of period

13,631

6,074

Cash and cash equivalents at end of period

6,074

7,272

Yen

I Unappropriated retained earnings(Cash distributions per unit)

Net increase (decrease) in cash and cash equivalents

38

Summary of Selected Financial Data
14th fiscal period
from April 1, 2012
to September 30, 2012
Business days

15th fiscal period
from October 1, 2012
to March 31, 2013

183 days

182 days

Total assets

114,174 million yen

133,843 million yen

Net assets

51,714 million yen

59,188 million yen

Unitholders’ capital

50,523 million yen

57,755 million yen

Investment units outstanding

115,070 units

137,070 units

Net assets per unit

449,417 yen

431,813 yen

1,191 million yen

1,433 million yen

10,351 yen

10,459 yen

2.1%

2.3%

Return on unitholders’ equity2(annualized)

4.6%

5.2%

Unitholders’ equity ratio3

45.3%

44.2%

66

77

259,178.31㎡

295,116.85㎡

97.7%

97.7%

Depreciation expense

727 million yen

853 million yen

Capital expenditures

51 million yen

23 million yen

Leasing Net Operating Income4(NOI)

2,761 million yen

3,141 million yen

Funds from Operation5 (FFO)

1,918 million yen

2,288 million yen

16,674 yen

16,692 yen

59,503 million yen

71,434 million yen

52.1%

53.4%

54.1%

55.3%

5.4 times

6.1 times

Total cash distributions
Cash distributions per unit
Ordinary income to total assets(annualized)

1

Total number of properties
Total rentable floor area
Period-end occupancy rate

FFO per unit
Total interest-bearing debt
6

Loan to Value (LTV)Interest-bearing debt ratio

7(1) Ordinary income to total assets = Ordinary income (annualized) / Average total assets
Average total assets = (Period-beginning total assets + Period-end total assets) / 2(2) Return on unitholders’ equity = Net income (annualized) / Average net assets
Average net assets = (Period-beginning net assets + Period-end net assets) / 2(3) Unitholders’ equity ratio = Period-end net assets / Period-end total assets(4) Leasing NOI = Leasing operating income (= Rent revenue-real estate – Expenses related to rent
business) + Depreciation and amortization (Expenses related to rent business)(5) FFO = Net income – Gain on sales of real estate properties + Loss on sales of real estate
properties + Depreciation and amortization(6) LTV = Period-end interest-bearing debt / Period-end total assets
Interest-bearing debt = Borrowings + Investment corporation bonds + Interest-bearing tenantleasehold and security deposits(7) Interest-bearing debt ratio = Period-end interest-bearing debt / (Period-end interest-bearing debt +Unitholders’ capital)(8) DSCR = (Net income + Repayment of interest-bearing debt + Interest expenses + Depreciation
and amortization) / (Repayment of interest-bearing debt + Interest expenses)

8

Debt Service Coverage Ratio(DSCR)

Note: Ratios are rounded to the nearest first decimal place.

39

History of the Investment Corporation since ListingTotalacquisition
price(million yen)Management before change of sponsor

150,000

Management after change of sponsor
89
properties
144,129

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

140,000
130,000
120,000
110,000
100,000
90,00080,00070,00060,00050,00038
42properties properties
82,217
81,473

July 28, 2005
Listed on the Tokyo
Stock Exchange

21
properties
16
47,516
properties
41,39240,00030,00020,00053
53
properties
properties
99,92099,920(Note 1)

November16, 2006
Third-party
allotment
1,500 units

October 1,
2012
Public offering
20,460 units

0

Sale of 1
property-10,000

October
26, 2012
Third-party
allotment
1,540 units

April 2, 2010
Third-party
allotment
10,400 units

November21, 2007Third-party
allotment
1,170 units

Change of trade
nameMarch 13,
2007
Investment
corporationbonds¥10,000 million

10,00060
properties
101,006

66
properties
110,214(Note 1)

October
24, 2007
Public offering
17,500 units

October 18,
28
2006
properties Public offering
61,70728,500 units

August 29,
2005
Third-party
allotment
2,000 units

48
properties
91,81853
52
properties properties
99,91999,04858
57
properties
53
properties 106,234
properties 103,974
99,92077
properties
128,794

April 22,2013
PublicOffering
21,430units

February 28,
2013
Investment
corporation
bonds¥6,000 million

Sale of 1
property

Partial sale of
HAMAMATSU Plaza, etc.

As of IPO

End of 1st FP End of 2nd FP End of 3rd FP End of 4th FP End of 5th FP End of 6th FP End of 7th FP End of 8th FP End of 9th FP End of 10th FP End of 11th FP End of 12th FP End of 13th FP End of 14th FP End of 15th FP(Mar. 31, 2006) (Sep. 30, 2006) (Mar. 31, 2007) (Sep. 30, 2007) (Mar. 31, 2008) (Sep. 30, 2008) (Mar. 31, 2009) (Sep. 30, 2009) (Mar. 31, 2010) (Sep. 30, 2010) (Mar. 31, 2011) (Sep. 30, 2011) (Mar. 31, 2012) (Sep. 30, 2012) (Mar. 31, 2013)

Unitholders’capital¥27,473
million¥28,491
million¥42,297
million¥48,704
million¥50,523
million¥57,755
million¥67,777
millionNumber ofinvestment
units

54,000units

56,000units

86,000units

104,670
units

115,070
units

137,070
units

158,500
units

Total interestbearing debt
(Note 2)―

¥23,165
million¥34,724
million¥42,382
million¥43,090
million¥44,523
million¥52,181
million¥51,639
million¥51,449
million¥51,208
million¥49,229
million¥51,874
million¥54,032
million¥58,073
million¥59,503
million¥71,434
million¥76,322
millionLTV (Note 3)

―

41.7%

51.7%

47.3%

47.7%

45.2%

49.3%

49.3%

49.0%

48.9%

47.1%

48.3%

49.3%

51.5%

52.1%

53.4%

-

Cash
distributionser
unit (Note 4)―¥17,277(¥12,730)¥12,995¥13,035¥13,023¥14,402¥11,147¥5,485¥10,262¥10,052¥8,160¥9,793¥10,045¥10,117¥10,351¥10,459-

As of date of
document

Notes: 1. With regard to Bell Plaza Shopping Center acquired in the fiscal period ended March 31, 2008, the former waterway on site, adjacent signboards and the site itself were additionally acquired at a total of ¥1 million during the fiscal period ended September 30, 2009. Also, the building additionally built on the site was additionallyacquired on June 29, 2012 for ¥18 million.
2. Total interest-bearing debt = Loans payable + Investment corporation bonds + Interest-bearing tenant leasehold and security deposits
3. LTV = Period-end interest-bearing debt / Period-end total assets
4. The operating period for the first fiscal period was the 346 days between April 20, 2005 and March 31, 2006. The actual management period was the 247 days between July 28, 2005 and March 31, 2006. In order to compare with the successive fiscal periods, the figure calculated with the number of management days as 182 isindicated in parentheses.

40Portfolio Development Policy
Diversified Investment
Limited core assets to “residences,” clarified that “management-type residences (Note)” are included in residences and expanded the focused investment areas for
Note: Management-type residences are facilities operated by dedicated management companies and providing general services (student dorms, serviced
residences in the Greater Tokyo area.
housing for the elderly, pay nursing homes, etc.)

Allocation rate by asset
class

Diversified investment by asset classSpecific area
①TokyoGreater Tokyo /Major Urban Areas

Work towards external growth based on high-quality
rental housing properties developed by Sekisui
House, the main sponsor, and aim to construct a
portfolio centering on residences(Focused
investment area)

80%~100%

For retail facilities, focus on stable management of
currently owned propertiesCore
assetsResidences

Of this,management
type residences:

Greater Tokyo /Other Urban Areas

0%~10%

Diversified investment by regionAllocation rate by region

Make Greater Tokyo / Major Urban Areas the focusedinvestment area of the portfolio

Major Regional
Cities Fully utilize the nationwide network of the Sekisui HouseGroup and also conduct diversified investments in otherinvestment areas with careful selection

Balance
assetsRetailfacilities,etc.

0%~20%

23 wards,
Musashinoshi,Mitaka-shi,
Koganei-shi

About 70%
②Kanagawa

Yokohama-shi,
Kawasaki-shi① Tokyo areas (except islands)
Together withand Kanagawa other than the
Greater Tokyoabove/ Major Urban② Chiba, Saitama
Areas③ Additional areas within
about 80%
commuting distance

About 20%

① Sapporo-shi, Sendai-shi,
Nagoya-shi, Kyoto-shi, Osakashi, Kobe-shi, Hiroshima-shi,
Fukuoka-shi, etc.
② Additional areas withincommuting distanceBased on an assessment of the specific characteristics of each
property, region and trade zone
Note: About means ±10%

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

Single/ Compact

FamilyLarge

Had already been positioned as a maininvestment target

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

Invest selectively after carefully analyzing
the location’s environment, etc.

Participate in the Sekisui House’s development
department’s planning and development meetingas an observer

Sekisui House has extensive performance indevelopment

First acquisition of its kind throughpublic offering in 16th FP
41

Portfolio Map (1)As of date of document

Residence (property number)
Retail Properties (property number)

Osaka City
Greater Tokyo / Major Urban Areas
Adachi-ku

Itabashi-ku
Kita-ku

Nerima-ku
Arakawa-ku
Musashino
City
Koganei City Mitaka City

Fukuoka City

Suginamiku

Nakanoku

ToshimaTaito-ku
ku
Bunkyo-ku

Katsushika-ku
Sumida-ku

Edogawaku

Shinjuku-ku

Shibuya-ku

Chiyoda-ku
Chuo-ku

Koto-ku

Minato-ku
Setagaya-ku

Meguro-ku
Shinagawa-ku

KawasakiCity

Ota-kuYokohama
City

Greater Tokyo / Other Urban Areas
Nagoya CityTokyo

Kanagawa

Portfolio PML

4.9%(Entire Portfolio)

Note: Portfolio PML is as of the survey in March2013 on owned assets at the end of the fiscal
period ended March 31, 2013 (15th fiscal
period) and does not include RINKU
HAGURAZAKI Plaza because the Investment
Corporation owns only the land.

42

Portfolio Map (2)Greater Tokyo / Major Urban Areas

Major Regional Cities

Esty Maison GINZA

Residence-3

Esty Maison AZABUNAGASAKA

Residence-4

Esty Maison EBISU II

Residence-5

Esty Maison EBISU

Residence-6

Esty Maison KANDA

Residence-7

Esty Maison SENDAGAYA

Residence

Residence

Residence
Residence-1

Residence-44

Properties acquired as of May 1, 2013
Residence

Esty Maison SENDAGIResidence-13

Esty Maison IMAIKE

Residence-75

Esty Maison HIGASHISHINJUKUResidence-45

Esty Maison YOTSUYASAKAMACHI

Residence-20

Esty Maison KYOBASHI

Residence-76

Esty Maison MOTOAZABUResidence-48

Esty Maison SANGENJAYAResidence-23

Esty Maison MINAMIHORIE

Residence-77

Esty Maison TORITSUDAIGAKU

Residence-53

Esty Maison SANGENJAYA IIResidence-28

Esty Maison JYOUTOU

Residence-78

Esty Maison MUSASHIKOYAMA II

Residence-54

Esty Maison ITABASHI C6Residence-29

Esty Maison TSUKAMOTO

Residence-79

Esty Maison NAKANO

Residence-56

Esty Maison KINSHICHO

Residence-35

Esty Maison TENJINHIGASHI I

Residence-80

Esty Maison SHINNAKANO

Residence-57

Esty Maison MUSASHIKOGANEIResidence-36

Esty Maison TENJINHIGASHI II

Residence-81

Esty Maison NAKANOFUJIMICHO

Residence-62

Esty Maison AKIHABARA

Residence-37

Esty Maison SHIJONISHINOTOIN

Residence-82

Esty Maison TETSUGAKUDO

Residence-63

Esty Maison SASAZUKA

Residence-41

Esty Maison NISHINAKAJIMA

Residence-83

Esty Maison KOENJI

Residence-64

Prime Maison GINZA EAST

Residence-46

Esty Maison HAKATAHIGASHI

Residence-84

Esty Maison OSHIAGE

Residence-69

Esty Maison SENGOKU

Residence-47

Esty Maison KAMIGOFUKUResidence-85

Esty Maison AKABANE

Residence-70

Esty Maison DAIZAWA

Residence-51

Prime Maison HIGASHISAKURA

Residence-86

Esty Maison OJI

Residence-71

Esty Maison TOGOSHI

Residence-52

Prime Maison KAYABAKOEN

Residence-74

Esty Maison SHIROKANEDAI

Residence-55

MAST HAKATA

Retail Properties

Residence-58

Prime Maison GOKISO

Retail-2

b-town JINGUMAE II

Residence-59

Prime Maison YUHIGAOKA

Residence-25 Esty Maison OISENDAIZAKA

Retail-4

b-town MINAMIAOYAMA

Residence-60

Prime Maison KITATANABE

Residence-26 Esty Maison SHINAGAWA SEASIDE

Retail-7

b-toss IKEBUKURO

Residence-61

Prime Maison MOMOCHIHAMAResidence-65

Prime Maison TAKAMI

Residence-66

Prime Maison YADAMINAMI

Residence

Residence-67

Prime Maison TERIHA

Residence-8

Esty Maison KITASHINJUKUResidence-10 Esty Maison ASAKUSAKOMAGATA
Residence-12 Esty Maison KAWASAKI
Residence-14 Esty Maison SHINKAWASAKI
Residence-15 Esty Maison YOKOHAMA
Residence-16 Esty Maison KAMEIDO
Residence-17 Esty Maison MEGURO
Residence-19 Esty Maison SUGAMO
Residence-21 Esty Maison MEGUROHONCHO
Residence-22 Esty Maison HAKURAKU
Residence-24 Esty Maison GOTANDA

Residence-27 Esty Maison MINAMIAZABUResidence-30 Esty Maison KAWASAKI II

Greater Tokyo / Other Urban Areas

Residence-31 Esty Maison AZABUJUBAN
Residence-33 Esty Maison ITABASHIHONCHO

Residence-11

Esty Maison MACHIDA

Residence-68

Esty Maison HIGASHISHIRAKABE

Residence-34 Esty Maison OIZUMIGAKUEN

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

Residence-72

Esty Maison KAWARAMACHI

Residence-73

Esty Maison NISHITENMA

Residence-39

Esty Maison HIGASHISHINAGAWA

Residence-40

Esty Maison HACHIOJIMINAMINO

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

Residence-50

Prime Maison MUSASHINONOMORI

Residence-43

Esty Maison MUSASHIKOYAMA

Retail Properties

Retail Properties

Retail-1

HAMAMATSU Plaza

Retail-5

KOJIMA NEW KAMIFUKUOKATEN

Retail-3

RINKU HAGURAZAKI Plaza

Retail-8

Joy Square YUGAWARA

Retail-9

Bell Plaza Shopping Center

43

Status of Portfolio ~Residence~Primary Properties Owned
Greater Tokyo / Major Urban Areas
Esty Maison
GINZA

Esty Maison
OISENDAIZAKA

Esty Maison
YOKOHAMA
エスティメゾン横浜

Greater Tokyo / Other Urban Areas
Esty Maison MACHIDA

Prime Maison MUSASHINONOMORI

Prime Maison
GINZA EAST

Esty Maison
SENGOKU

Major Regional Cities
Prime Maison
HIGASHISAKURAMASTHAKATA

44

Status of Portfolio ~Retail Properties~
Remaining Contract Period

Properties Owned
Greater Tokyo / Major Urban Areas

10 years or more

14.7%

Less than 3
years

b-town JINGUMAE II

b-town MINAMIAOYAMA

b-tossIKEBUKURO

41.6%
5 years toless than
10 years

34.2%

3 years
to lessthan
5 years

Weighted
average ofremaining
years

9.5%

5.2 years

As of end of fiscal period ended March 31, 2013
(15th fiscal period)

Greater Tokyo / Other Urban Areas
KOJIMA NEW
KAMIFUKUOKATEN

Joy Square YUGAWARA

Major Regional Cities
HAMAMATSU PlazaRINKU HAGURAZAKI
Plaza

Bell Plaza Shopping Center

Note: The weighted average of remaining years is based on tenant lease agreements effective as of the end of the fiscal period ended March 31, 2013 (15th fiscal period) and calculated by seeking the weighted averagewith the highest shop rent (excluding sales rent) during the lease period, and are rounded down to the nearest first decimal place.

45

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)Appraisal
Value at End of
Period(Million yen)

Ratio
(%)

Occupancy Rate (%)
As of Sep.
30, 2012

As of Mar. 31,
2013

Completion Date

Residence-1

Esty Maison GINZA

Ginza, Chuo-ku, Tokyo

636.36

7,836.57

5,290

4.1

5,300

94.5

Residence-3

Esty Maison AZABUNAGASAKA

Roppongi, Minato-ku, Tokyo

677.452,317.87

1,730

1.3

1,520

94.2

94.1 January 16, 2004

Residence-4

Esty Maison EBISU II

Higashi, Shibuya-ku, Tokyo

561.582,452.69

1,960

1.5

1,740

87.6

88.1 June 13, 2003

Residence-5

Esty Maison EBISU

Hiroo, Shibuya-ku, Tokyo

169.00871.90

700

0.5

738

96.8

92.1 October 20, 2004

Residence-6

Esty Maison KANDA

Kandata-cho, Chiyoda-ku, Tokyo

307.692,028.19

1,360

1.1

1,280

100.0

100.0 February 20, 2004

98.2 February 7, 2005

Residence-7

Esty Maison SENDAGAYA

Daikyo-cho, Shinjuku-ku, Tokyo

340.49844.13

576

0.4

518

87.1

90.6 August 31, 2004

Residence-8

Esty Maison KITASHINJUKU

Kita-shinjuku, Shinjuku-ku, Tokyo

504.412,204.07

1,290

1.0

1,380

95.0

97.1 August 6, 2004

Residence-10

Esty Maison ASAKUSAKOMAGATA

Komagata, Taito-ku, Tokyo

663.54

3,406.10

1,870

1.5

1,850

92.8

94.3 July 28, 2004

Residence-11

Esty Maison MACHIDA

Hara-machida, Machida-shi, Tokyo

587.484,033.59

1,360

1.1

1,370

100.0

93.4 February 23, 2004

683.694,656.10

2,130

1.7

2,180

90.1

98.7 July 15, 2004

Esty Maison KAWASAKI

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

Residence-13

Esty Maison IMAIKE

Imaike, Chikusa-ku, Nagoya-shi, Aichi

Residence-14

Esty Maison SHINKAWASAKI

Furuichiba, Saiwai-ku, Kawasaki-shi, Kanagawa

Residence-15

Esty Maison YOKOHAMA

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

Residence-12

360.54

1,375.76

300

0.2

196

87.2

93.0 October 15, 1991

1,992.09

3,737.47

1,018

0.8

999

100.0

100.0 March 5, 1999

611.41

3,076.45

2,090

1.6

1,930

100.0

100.0 January 23, 2007
100.0 November 30, 2005

Residence-16

Esty Maison KAMEIDO

Kameido, Koto-ku, Tokyo

438.432,899.67

1,650

1.3

1,440

96.9

Residence-17

Esty Maison MEGURO

Mita, Meguro-ku, Tokyo

578.01

1,283.92

887

0.7

989

97.5

97.5 November 28, 2005

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

Midorigaoka, Yachiyo-shi, Chiba

1,289.14

5,420.53

1,348

1.0

1,100

95.3

95.3 January 10, 1998

Residence-19

Esty Maison SUGAMO

Sugamo, Toshima-ku, Tokyo

965.702,785.83

1,510

1.2

1,410

84.4

95.0 February 22, 2007

Residence-20

Esty Maison KYOBASHI

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

799.685,995.82

2,774

2.2

2,660

100.0

98.9 March 2, 2006

Residence-21

Esty Maison MEGUROHONCHO

Megurohoncho, Meguro-ku, Tokyo

865.22

1,975.84

1,220

0.9

969

93.8

93.8 February 22, 2006

Residence-22

Esty Maison HAKURAKU

Rokkakubashi, Kanagawa-ku, Yokohama-shi,
Kanagawa

457.54

1,593.68

844

0.7

812

100.0

98.2 February 2, 2006

Residence-23

Esty Maison MINAMIHORIE

Minamihorie, Nishi-ku, Osaka-shi, Osaka

475.06

1,994.14

1,055

0.8

951

96.8

96.8 February 19, 2007

Residence-24

Esty Maison GOTANDA (Note 5)

Nishi-gotanda, Shinagawa-ku, Tokyo

593.325,590.34

3,043

2.4

2,620

98.7

98.5 March 2, 2006

Residence-25

Esty Maison OISENDAIZAKA

Higashi-oi, Shinagawa-ku, Tokyo

Residence-26

Esty Maison SHINAGAWA SEASIDE

Higashi-Shinagawa, Shinagawa-ku, Tokyo

558.393,440.73

2,440

1.9

2,340

94.3

95.5 August 10, 2006

1,049.00

3,127.48

2,200

1.7

1,980

97.1

96.7 June 23, 2006
100.0 August 23, 2006

Residence-27

Esty Maison MINAMIAZABUMinamiazabu, Minato-ku, Tokyo

487.27

1,479.61

1,300

1.0

1,140

94.2

Residence-28

Esty Maison JYOUTOU

Noe, Jyoutou-ku, Osaka-shi, Osaka

740.492,232.26

1,075

0.8

916

98.5

100.0 August 31, 2006

Residence-29

Esty Maison TSUKAMOTO

Tsukamoto, Yodogawa-ku, Osaka-shi, Osaka

808.542,565.66

1,250

1.0

1,040

99.0

100.0 August 10, 2006

Residence-30

Esty Maison KAWASAKI II

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

601.383,193.14

1,900

1.5

1,850

100.0

98.4 February 27, 2007

Residence-31

Esty Maison AZABUJUBAN

Azabujuban, Minato-ku, Tokyo

380.26

2,097.45

2,700

2.1

2,310

98.7

98.8 February 22, 2007

Residence-33

Esty Maison ITABASHIHONCHO

Yamato-cho, Itabashi-ku, Tokyo

220.85

1,446.78

1,000

0.8

865

95.3

100.0 February 27, 2007

Residence-34

Esty Maison OIZUMIGAKUEN

Higashi-Oizumi, Nerima-ku, Tokyo

618.001,542.16

871

0.7

757

94.6

98.3 February 22, 2007

46

List of Properties Owned at End of Period (2)Acquisition Price
Property No.

Property Name

Location

Site Area(m2)

Total Floor
Area (m2)Price(Million yen)

Ratio
(%)

Occupancy Rate (%)

Appraisal
Value at End of
Period(Million yen)

As of Sep.
30, 2012

As of Mar.
31, 2013

Completion Date

Residence-35 Esty Maison TENJINHIGASHI I

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

239.18

1,158.70

445

0.3

357

100.0

100.0 January 31, 2007

Residence-36

Esty Maison TENJINHIGASHI II

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

514.892,108.69

840

0.7

662

100.0

98.8 May 23, 2007

Residence-37

Esty Maison SHIJONISHINOTOIN

400.593,374.74

1,420

1.1

1,020

97.7

93.3 April 8, 2008

Residence-39

Esty Maison HIGASHISHINAGAWA

1,028.92

3,338.12

2,610

2.0

2,210

92.5

94.5 May 23, 2008

Residence-40

Esty Maison HACHIOJIMINAMINO

Nishikatakura, Hachioji-shi, Tokyo

1,134.50

2,243.06

1,000

0.8

948

89.5

88.4 March 6, 2007

Residence-41

Esty Maison NISHINAKAJIMA

Higashinakajima, Higashiyodogawa-ku,
Osaka-shi, Osaka

969.02

3,947.24

2,250

1.7

1,850

95.5

98.5 April 18, 2007

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

Itabashi, Itabashi-ku, Tokyo

731.71

4,322.19

2,700

2.1

2,300

98.4

96.8 April 22, 2007

Residence-43

Esty Maison MUSASHIKOYAMA (Note 5)

Ebara, Shinagawa-ku, Tokyo

512.62

1,616.87

1,012

0.8

926

96.3

97.4 November 5, 2007

Residence-44

Esty Maison SENDAGI (Note 5)

Sendagi, Bunkyo-ku, Tokyo

250.44

1,239.10

757

0.6

629

93.1

100.0 January 9, 2008

Residence-45

Esty Maison YOTSUYASAKAMACHI (Note 5)

Sakamachi, Shinjuku-ku, Tokyo

905.083,675.01

2,300

1.8

1,790

96.3

95.8 March 29, 2008

Residence-46

Esty Maison HAKATAHIGASHI

4,590.91

9,465.09

2,250

1.7

2,200

97.0

96.7 November 21, 2007

Residence-47

Esty Maison KAMIGOFUKU

593.552,523.71

900

0.7

774

97.2

100.0 March 14, 2008

Residence-48

Esty Maison SANGENJAYASangenjaya, Setagaya-ku, Tokyo

153.83954.94

871

0.7

768

100.0

100.0 January 22, 2008

Residence-50

Prime Maison MUSASHINONOMORI

Josuihoncho, Kodaira-shi, Tokyo

5,116.62

4,412.42

1,560

1.2

1,710

98.7

95.8 December 19, 2007

Residence-51

Prime Maison HIGASHISAKURA

Higashisakura, Higashi-ku, Nagoya-shi,
Aichi

846.053,517.62

1,140

0.9

1,260

98.6

100.0 February 15, 2008

Residence-52

Prime Maison KAYABAKOEN

Kayaba, Chikusa-ku, Nagoya-shi, Aichi

1,129.02

2,301.42

640

0.5

689

92.8

96.3 November 7, 2006

Residence-53

Esty Maison SANGENJAYA II

Shimouma, Setagaya-ku, Tokyo

473.85

1,006.89

714

0.6

756

95.0

100.0 January 28, 2008

Residence-54

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

773.485,249.34

2,260

1.8

2,300

94.3

98.2 March 12, 2008

Residence-55

MAST HAKATA (Note 6)

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

2,457.01

11,621.67

1,920

1.5

2,110

100.0

100.0 January 15, 2005

Residence-56

Esty Maison KINSHICHO

Kinshi, Sumida-ku, Tokyo

338.57

1,718.10

1,050

0.8

1,125

100.0

97.2 September 6, 2006

Residence-57

Esty Maison MUSASHIKOGANEI

Honcho, Koganei-shi, Tokyo

520.252,676.36

1,450

1.1

1,560

94.2

97.1 February 2, 2005

Residence-58

Prime Maison GOKISO

Ayuchitori, Showa-ku, Nagoya-shi, Aichi

1,429.67

4,691.72

1,640

1.3

1,710

100.0

96.5 October 28, 2008

Residence-59

Prime Maison YUHIGAOKA

Ueshio, Tennoji-ku, Osaka-shi, Osaka

547.152,336.49

810

0.6

840

92.3

84.6 February 16, 2007

Residence-60

Prime Maison KITATANABE

640.92

2,112.46

540

0.4

543

85.1

100.0 June 13, 2006

Residence-61

Prime Maison MOMOCHIHAMA

4,069.42

8,945.61

1,810

1.4

1,850

100.0

100.0 February 29, 1996

Residence-62

Esty Maison AKIHABARA

Ueno, Taito-ku, Tokyo

458.322,821.47

1,560

1.2

1,688

98.7

100.0 February 24, 2006

Residence-63

Esty Maison SASAZUKA

Sasazuka, Shibuya-ku, Tokyo

909.33

4,263.10

2,830

2.2

2,860

92.0

97.5 September 7, 2004

Residence-64

Prime Maison GINZA EAST

Tsukiji, Chuo-ku, Tokyo

969.108,724.48

5,205

4.0

5,277

-

93.6 February 28, 2006

Residence-65

Prime Maison TAKAMI

2,354.34

905

0.7

937

-

89.7 August 27, 2008

Prime Maison YADAMINAMI

Takami, Chikusa-ku, Nagoya-shi, Aichi
Yadaminami, Higashi-ku, Nagoya-shi,
Aichi
Kashiiteriha, Higashi-ku, Fukuoka-Shi,
Fukuoka
Yoshino, Higashi-ku, Nagoya-shi, Aichi

1,129.17

Residence-66

1,148.53

2,430.23

715

0.6

732

-

91.9 July 18, 2007

Residence-67

Prime Maison TERIHA

Residence-68

Esty Maison HIGASHISHIRAKABE

Myodenji-cho, Shijo-sagaru, Nishinotoindori, Shimogyo-ku, Kyoto-shi, Kyoto
Higashi-Shinagawa, Shinagawa-ku,
Tokyo

Yoshizuka, Hakata-ku, Fukuoka-shi,
Fukuoka
Kamigofukumachi, Hakata-ku, Fukuokashi, Fukuoka

Kitatanabe, Higashisumiyoshi-ku, Osakashi, Osaka
Momochihama, Sawara-ku Fukuoka-shi,
Fukuoka

4,130.59

7,953.60

1,110

0.9

1,150

-

100.0 August 31, 2005

1,959.76

4,232.39

1,350

1.0

1,390

-

100.0 February 27, 2006

47

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

Property Name

Location

Site Area (m2)

Total Floor
Area (m2)Price(Million yen)

Ratio
(%)

Appraisal
Value at End of
Period(Million yen)

As of Sep.
30, 2012

As of Mar.
31, 2013

Occupancy Rate (%)
Completion Date

Residence-69

Esty Maison SENGOKU

Sengoku, Bunkyo-ku, Tokyo

1,002.14

2,068.21

1,075

0.8

1,130

-

100.0

August 6, 2009

Residence-70

Esty Maison DAIZAWA

Daizawa, Setagaya-ku, Tokyo

1,901.36

2,948.98

1,870

1.5

1,870

-

93.3

February 18, 2010

Residence-71

Esty Maison TOGOSHI

Togoshi, Shinagawa-ku, Tokyo

679.82

2,545.90

1,370

1.1

1,410

-

97.9

June 25, 2009

Residence-72

Esty Maison KAWARAMACHI

Kawaramachi, Chuo-ku, Osaka-shi, Osaka

655.894,580.48

1,640

1.3

1,740

-

95.7

October 17, 2006

Residence-73

Esty Maison NISHITENMA

Nishitenma, Kita-ku, Osaka-shi, Osaka

519.65

4,514.05

1,440

1.1

1,540

-

87.1

November 30, 2007

Residence-74

Esty Maison SHIROKANEDAI

Kamiosaki, Shinagawa-ku, Tokyo

1,279.67

2,797.66

1,900

1.5

2,130

-

86.5

September 16, 2003

67,132.59

232,298.38

108,600

84.3

103,891

96.4

96.8

99,135.98

53,975.49

6,477

5.0

5,639

100.0

100.0

283.83499.67

1,043

0.8

910

100.0

100.0 May 20, 2005

Residence Subtotal
Retail-1

HAMAMATSU Plaza (Note 7)

Kaminishi-cho, Higashi-ku, Hamamatsu-shi,
Shizuoka, etc.

Retail-2

b-town JINGUMAE II

Jingumae, Shibuya-ku, Tokyo(Note 7)53,231.66

－

4,697

3.6

4,410

100.0

100.0

Minamiaoyama, Minato-ku, Tokyo

385.32797.63

1,530

1.2

1,140

100.0

100.0 February 28, 2006

Retail-3

RINKU HAGURAZAKI Plaza (Note 8) Tajiri-cho , Gashouji, Sennan-gun, Osaka, etc.

Retail-4

b-town MINAMIAOYAMA－

Retail-5

KOJIMA NEW KAMIFUKUOKATEN

Kamifukuoka, Fujimino-shi, Saitama

4,877.90

3,413.40

1,300

1.0

1,170

100.0

100.0 October 14, 1996

Retail-7

b-toss IKEBUKURO

Nishi-Ikebukuro, Toshima-ku, Tokyo

223.381,474.21

1,980

1.5

1,530

77.5

66.3 November 12, 2005

Retail-8

Joy Square YUGAWARA

Chuo, Yugawaramachi, Ashigarashimo-gun,
Kanagawa

5,425.13

6,326.53

1,810

1.4

1,510

100.0

100.0 September 22, 2006

Retail-9

Bell Plaza Shopping Center

Nakamaruko, Ueda-shi, Nagano

23,304.57

6,283.76

1,355(Note 9)

1.1

1,180

100.0

100.0

Notes:

Retail Subtotal

186,867.77

72,770.69

20,193

15.7

17,48999.7

99.6

Portfolio Total

254,000.36

305,069.07

128,794

100.0

121,380

97.7

97.7

Owned as of March 31, 2013 (end of 15th fiscal period)

77 properties

128,794 million yen

Acquired May 1, 2013 (16th fiscal period)

12 properties

15,335 million yen

Owned as of the date of this document (May 17, 2013)89 properties

144,129 million yen(Note 9)

1. Based on information as of March 31, 2013. Occupancy rates are rounded to the nearest first decimal place.
2. Concerning acquisition prices, amounts of less than one million yen are rounded down, and percentages indicate the portion of the portfolio’s total acquisition price for properties owned and are rounded to the nearest first decimal place.
3. The listed site area, total floor area figures and completion dates are based on indications given in the register.
4. The appraisal value at end of period is the amount appraised based on an appraisal by a real estate appraiser rounded down to the nearest million yen.
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, while “Total Floor Area” indicates the floor area of the entire building. The exclusive portions of the total floor area that theInvestment Corporation has acquired are 3,637.18m2, 1,148.58m2, 867.27m2 and 2,253.07m2, respectively.
6. MAST HAKATA is a leasehold property with a general fixed-term land leasehold of a 50 year 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.
7. HAMAMATSU Plaza is a commercial complex comprised of five buildings (Ito-Yokado Building, Akachan Honpo Building, XEBIO Building, HAMAPLA Frespo Building and the management building) or Hamamatsu Plaza East andHamamatsu Plaza West. Operations began after the property was acquired for ¥15,360 million on July 28, 2005, but a portion was sold on March 30, 2012. Since then, Sekisui House SI Investment Corporation has held a 49% quasi-coownership interest in the real estate trust beneficial interest of Hamamatsu Plaza East, but for “site area” and “total floor area” that for the entire Hamamatsu Plaza East are indicated . In addition, the HAMAPLA Frespo Building is notincluded in the “total floor space” because only the land is owned and leased (the buildings on it are owned by the tenants). As “acquisition price” and “appraisal value at end of period” are for the 49% quasi-co-ownership interest, they are
not included in the sale portion. With regard to “completion date” the Ito-Yokado Building and management building were completed on November 7, 2000, and Akachan Honpo Building and XEBIO Building were completed on November
9, 2000. As HAMAPLA Frespo Building its “completion date” is not indicated because only the land is owned and leased (the buildings on it are owned by the tenants).
8. As for Rinku Hagurazaki Plaza, its “total floor area” and “completion date” are not indicated because only the land is owned and leased (the buildings on it are owned by the tenants).
9. With regard to Bell Plaza Shopping Center acquired in the fiscal period ended March 31, 2008, the former waterway on site, adjacent signboards and the site itself were additionally acquired at a total of ¥1 million during the fiscal period
ended September 30, 2009. Also, the building additionally built on the site was additionally acquired on June 29, 2012 for ¥18 million. Bell-Plaza Shopping Center is commercial complex, with the center building and shop building
completed on November 30, 1992, the restaurant building completed on July 12, 2006 and the separate crystal plaza building completed on June 26, 2012.

48

List of Period-End Estimated Values (1)Property No.

Property Name

Acquisition Price(million yen)

Period-end estimated value (millionyen)
As of Sep. 30,
2012

As of Mar. 31,
2013

Direct capitalization rate (%)
Change (millionyen)

As of Sep. 30,
2012

Discount rate (%)

As of Mar. 31,
2013

As of Sep. 30,
2012

Terminal capitalization rate (%)

As of Mar. 31,
2013

As of Sep. 30,
2012

As of Mar. 31,
2013

Residence-1

Esty Maison GINZA

5,290

5,260

5,300

40

4.9

4.8

5.1

5.0

5.2

5.1

Residence-3

Esty Maison AZABUNAGASAKA

1,730

1,490

1,520

30

5.0

4.9

5.1

5.0

5.3

5.2

Residence-4

Esty Maison EBISU II

1,960

1,730

1,740

10

5.0

4.9

5.1

5.0

5.3

5.2

Residence-5

Esty Maison EBISU

700

736

738

2

4.9

4.8

5.0

4.9

5.2

5.1

Residence-6

Esty Maison KANDA

1,360

1,260

1,280

20

5.0

4.9

5.1

5.0

5.3

5.2

Residence-7

Esty Maison SENDAGAYA

576

471

518

47

5.6

5.1

5.3

5.2

5.5

5.4

Residence-8

Esty Maison KITASHINJUKU

1,290

1,350

1,380

30

5.2

5.1

5.2

5.1

5.5

5.4

Residence-10

Esty Maison ASAKUSAKOMAGATA

1,870

1,820

1,850

30

5.3

5.1

5.3

5.1

5.6

5.4

Residence-11

Esty Maison MACHIDA

1,360

1,360

1,370

10

5.7

5.6

5.6

5.5

6.0

5.9

Residence-12

Esty Maison KAWASAKI

2,130

2,170

2,180

10

5.4

5.3

5.4

5.3

5.7

5.6

Residence-13

Esty Maison IMAIKE

300

196

196

-

6.6

6.5

5.9

5.8

6.9

6.8

Residence-14

Esty Maison SHINKAWASAKI

1,018

981

999

18

6.0

5.9

4.7

4.6

6.3

6.2

Residence-15

Esty Maison YOKOHAMA

2,090

1,930

1,930

-

5.4

5.4

5.2

5.2

5.6

5.6

Residence-16

Esty Maison KAMEIDO

1,650

1,440

1,440

-

5.5

5.5

5.3

5.3

5.7

5.7

Residence-17

Esty Maison MEGURO

887

978

989

11

5.0

5.0

4.8

4.8

5.2

5.2

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

1,348

1,090

1,100

10

5.8

5.7

5.7

5.6

5.9

5.8

Residence-19

Esty Maison SUGAMO

1,510

1,410

1,410

-

5.1

5.0

4.8

4.7

5.4

5.3

Residence-20

Esty Maison KYOBASHI

2,774

2,610

2,660

50

5.6

5.5

5.5

5.4

5.7

5.6

Residence-21

Esty Maison MEGUROHONCHO

1,220

969

969

-

5.1

5.1

4.9

4.9

5.3

5.3

Residence-22

Esty Maison HAKURAKU

844

811

812

1

5.5

5.5

5.3

5.3

5.7

5.7

Residence-23

Esty Maison MINAMIHORIE

1,055

930

951

21

5.6

5.5

5.3

5.2

5.9

5.8

Residence-24

Esty Maison GOTANDA

3,043

2,620

2,620

-

5.3

5.3

5.0

5.0

5.5

5.5

Residence-25

Esty Maison OISENDAIZAKA

2,440

2,330

2,340

10

5.1

5.1

4.9

4.9

5.3

5.3

Residence-26

Esty Maison SHINAGAWA SEASIDE

2,200

1,940

1,980

40

5.1

5.0

4.8

4.7

5.4

5.3

Residence-27

Esty Maison MINAMIAZABU

1,300

1,110

1,140

30

4.8

4.7

4.5

4.4

5.1

5.0

Residence-28

Esty Maison JYOUTOU

1,075

916

916

-

5.9

5.9

5.7

5.7

6.1

6.1

Residence-29

Esty Maison TSUKAMOTO

1,250

1,030

1,040

10

5.9

5.9

5.7

5.7

6.1

6.1

Residence-30

Esty Maison KAWASAKI II

1,900

1,820

1,850

30

5.3

5.2

5.0

4.9

5.6

5.5

Residence-31

Esty Maison AZABUJUBAN

2,700

2,250

2,310

60

4.8

4.7

4.5

4.4

5.1

5.0

Residence-33

Esty Maison ITABASHIHONCHO

1,000

847

865

18

5.2

5.1

4.9

4.8

5.5

5.4

Residence-34

Esty Maison OIZUMIGAKUEN

871

742

757

15

5.3

5.2

5.0

4.9

5.6

5.5

Residence-35

Esty Maison TENJINHIGASHI I

445

357

357

-

6.0

6.0

5.8

5.8

6.2

6.2

49

List of Period-End Estimated Values (2)Property No.

Property Name

AcquisitionPrice(million yen)

Period-end estimated value (millionyen)
As of Sep. 30,
2012

As of Mar. 31,
2013

Direct capitalization rate (%)
Change (millionyen)

As of Sep. 30,
2012

Discount rate (%)

As of Mar. 31,
2013

As of Sep. 30,
2012

Terminal capitalization rate (%)

As of Mar. 31,
2013

As of Sep. 30,
2012

As of Mar. 31,
2013

Residence-36

Esty Maison TENJINHIGASHI II

840

662

662

-

6.0

6.0

5.8

5.8

6.2

6.2

Residence-37

Esty Maison SHIJONISHINOTOIN

1,420

1,020

1,020

-

5.8

5.8

5.6

5.6

6.0

6.0

Residence-39

Esty Maison HIGASHISHINAGAWA

2,610

2,170

2,210

40

5.3

5.2

5.1

5.0

5.5

5.4

Residence-40

Esty Maison HACHIOJIMINAMINO

1,000

941

948

7

5.8

5.7

5.7

5.6

5.9

5.8

Residence-41

Esty Maison NISHINAKAJIMA

2,250

1,860

1,850

- 10

5.8

5.8

5.6

5.6

6.0

6.0

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

2,700

2,270

2,300

30

5.2

5.1

4.9

4.8

5.5

5.4

Residence-43

Esty Maison MUSASHIKOYAMA

1,012

919

926

7

5.3

5.1

4.9

4.8

5.6

5.4

Residence-44

Esty Maison SENDAGI

757

623

629

6

5.3

5.1

4.9

4.8

5.6

5.4

Residence-45

Esty Maison YOTSUYASAKAMACHI

2,300

1,770

1,790

20

5.1

5.0

4.8

4.7

5.4

5.3

Residence-46

Esty Maison HAKATAHIGASHI

2,250

2,160

2,200

40

6.0

5.9

6.0

5.9

6.1

6.0

Residence-47

Esty Maison KAMIGOFUKU

900

757

774

17

5.9

5.8

5.9

5.8

6.0

5.9

Residence-48

Esty Maison SANGENJAYA

871

753

768

15

5.1

5.0

5.2

5.1

5.4

5.3

Residence-50

Prime Maison MUSASHINONOMORI

1,560

1,690

1,710

20

5.8

5.7

5.7

5.6

6.1

6.0

Residence-51

Prime Maison HIGASHISAKURA

1,140

1,240

1,260

20

5.9

5.7

5.7

5.5

6.2

6.0

640

679

689

10

6.0

5.9

5.9

5.8

6.3

6.2

Residence-52

Prime Maison KAYABAKOEN

Residence-53

Esty Maison SANGENJAYA II

714

743

756

13

5.2

5.1

5.3

5.2

5.5

5.4

Residence-54

Esty Maison ITABASHI C6

2,260

2,300

2,300

-

5.3

5.2

5.1

5.0

5.5

5.4

Residence-55

MAST HAKATA

1,920

2,070

2,110

40

6.1

6.0

5.6

5.5

6.3

6.2

Residence-56

Esty Maison KINSHICHO

1,050

1,131

1,125

-6

5.2

5.1

4.9

4.8

5.4

5.3

Residence-57

Esty Maison MUSASHIKOGANEI

1,450

1,550

1,560

10

5.3

5.2

5.4

5.3

5.6

5.5

Residence-58

Prime Maison GOKISO

1,640

1,690

1,710

20

5.9

5.7

5.9

5.7

6.2

6.0

Residence-59

Prime Maison YUHIGAOKA

810

840

840

-

5.6

5.6

5.4

5.4

5.8

5.8

Residence-60

Prime Maison KITATANABE

540

543

543

-

5.9

5.9

5.7

5.7

6.1

6.1

5.5

5.4

(Note 4)(Note 4)

6.3

6.2

Residence-61

Prime Maison MOMOCHIHAMA

1,810

1,820

1,850

30

6.0

5.9

Residence-62

Esty Maison AKIHABARA

1,560

1,659

1,688

29

5.1

5.0

4.8

4.7

5.3

5.2

Residence-63

Esty Maison SASAZUKA

2,830

2,860

2,860

-

5.1

5.1

4.9

4.9

5.3

5.3

Residence-64

Prime Maison GINZA EAST

5,205

-

5,277

-

4.8

-

4.5

-

5.0

Residence-65

Prime Maison TAKAMI

905

-

937

-

5.4

-

5.5

-

5.7

Residence-66

Prime Maison YADAMINAMI

715

-

732

-

5.9

-

5.8

-

6.2

Residence-67

Prime Maison TERIHA

1,110

-

1,150

-

6.1

-

5.9

-

6.3

Residence-68

Esty Maison HIGASHISHIRAKABE

1,350

-

1,390

-

5.8

-

-

6.1

5.6
(Note 4)50

List of Period-End Estimated Values (3)Property No.

Property Name

Acquisition Price(million yen)

Period-end estimated value(million yen)
As of Sep. 30,
2012

As of Sep. 30,
2012

1,130

Discount rate (%)

As of Mar. 31,
2013-

As of Sep. 30,
2012

4.9

Terminal capitalization rate (%)

As of Mar. 31,
2013-

As of Sep. 30,
2012

4.7

As of Mar. 31,
2013

Residence-69

Esty Maison SENGOKU

1,075

Residence-70

Esty Maison DAIZAWA

1,870

-

1,870

-

4.9

-

4.7

-

5.1

Residence-71

Esty Maison TOGOSHI

1,370

-

1,410

-

5.0

-

5.1

-

5.3

Residence-72

Esty Maison KAWARAMACHI

1,640

-

1,740

-

5.5

-

5.6

-

5.8

Residence-73

Esty Maison NISHITENMA

1,440

-

1,540

-

5.5

-

5.6

-

5.8

Residence-74

Esty Maison SHIROKANEDAI

1,900

-

2,130

-

4.9

-

4.7

-

5.1

108,600

83,674

103,891911(Note 5)

5.5

5.4

5.3

5.2

5.7

5.6

5,625

5,639

14

6.4

6.4

6.2

6.2

6.6

6.6
4.9

Residence Subtotal-

As of Mar. 31,
2013

Direct capitalization rate (%)
Change(million yen)-

5.1

Retail-1

HAMAMATSU Plaza (Note 6)

6,477

Retail-2

b-town JINGUMAE II

1,043

891

910

19

4.7

4.6

4.4

4.3

5.0

Retail-3

RINKU HAGURAZAKI Plaza (Note 7)

4,697

4,410

4,410

-

-

-

-

-

-

-

Retail-4

b-town MINAMIAOYAMA

1,530

1,140

1,140

-

4.7

4.7

4.7

4.7

4.8

4.8

Retail-5

KOJIMA NEW KAMIFUKUOKATEN

1,300

1,120

1,170

50

6.7

6.6

6.4

6.3

7.0

6.9

Retail-7

b-toss IKEBUKURO

1,980

1,540

1,530

- 10

5.4

5.4

5.4

5.4

5.5

5.5

Retail-8

Joy Square YUGAWARA

1,810

1,510

1,510

-

6.4

6.4

6.3

6.3

6.6

6.6

Retail-9

Bell Plaza Shopping Center

1,355

1,170

1,180

10

6.3

6.3

6.2

6.2

6.4

6.4

Retail Subtotal

20,193

17,406

17,489

83

5.8

5.8

5.7

5.6

6.0

6.0

Portfolio Total

128,794

101,080

121,380994(Note 5)

5.5

5.4

5.3

5.2

5.7

5.6

Notes: 1. Amounts are rounded down to the nearest million yen.
2. “Period-end estimated value,” “direct capitalization rate,” “discount rate” and “terminal capitalization rate” for the end of the fiscal period ended September 30, 2012 (the 14th FP) are the amount based on real estate appraisal by real estateappraisers or on real estate survey price found in real estate surveys. Also, “period-end estimated value,” “direct capitalization rate,” “discount rate” and “terminal capitalization rate” for the fiscal period ended March 31, 2013 (the 15th FP) are theamount based on real estate appraisal by real estate appraisers.
3. “Direct capitalization rate,” “discount rate” and “terminal capitalization rate” in the residence subtotal, retail subtotal and portfolio total are the simple averages of the figures for the owned properties and are rounded to the nearest first decimal place.
4. A master lease agreement and rent guarantee type lease agreement are concluded with Sekiwa Real Estate Kyushu, Ltd. with regard to Prime Maison MOMOCHIHAMA. In calculating the period-end estimated value as of September 30, 2012, theproperty’s discount rate until the expiry of the contract is 5.5% and its discount rate after the expiry of the contract is 5.7% while in calculating the period-end estimated value as of March 31, 2013, the property’s discount rate until the expiry of thecontract is 5.4% and its discount rate after the expiry of the contract is 5.6%. Also, a master lease agreement and rent guarantee type lease agreement are concluded with Sekiwa Real Estate Chubu, Ltd. with regard to Esty Maison
HIGASHISHIRAKABE. In calculating the period-end estimated value as of March 31, 2013, the property’s discount rate until the expiry of the contract is 5.6% and its discount rate after the expiry of the contract is 5.8%. For the sake of convenience,
the above chart shows the discount rates until the expiry of the contracts.
5. The residence 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 September 30, 2012 (the 14th FP) (not including the 11 properties acquired
during the fiscal period ended March 30, 2013 (the 15th FP)).
6. HAMAMATSU Plaza is a commercial complex comprised of Hamamatsu Plaza East and Hamamatsu Plaza West. Operations began after the property was acquired for ¥15,360 million on July 28, 2005, but a portion was sold on March 30, 2012.
Since then, Sekisui House SI Investment Corporation has held a 49% quasi-co-ownership interest in the real estate trust beneficial interest of Hamamatsu Plaza East. Consequently, “acquisition price” and “period-end estimated value” are for the 49%
quasi-co-ownership interest and do not include the portion that was sold.
7. As for RINKU HAGURAZAKI Plaza, “direct capitalization rate,” “discount rate” and “terminal capitalization rate” are not indicated because only the land is owned and leased and its appraisal method differs from that of other acquired assets. Pleaserefer to the following table for the appraisal of the property.

Discount rate in the DCF method (%)
Property No.

Retail-3

Discount rate of price of return to vacant lot after
profiting period in the DCF method (%)

Property Name

Fiscal period ended
September 30, 2012
(the 14th FP)

Fiscal period ended
March 31, 2013
(the 15th FP)

Fiscal period ended
September 30, 2012
(the 14th FP)

Fiscal period ended
March 31, 2013
(the 15th FP)

RINKU HAGURAZAKI Plaza

6.1~7.7*

6.1~6.6*

6.1~7.7*

6.1~6.6**Three properties apply and each differ according to contract
conditions and such.

51

Overview of Interest-Bearing Debt (1)■ Loans

As of date of document

Short -Termloans payable

LenderDrawdown
Date

Mizuho Corporate Bank, Ltd.

¥500 million

Mizuho Corporate Bank, Ltd.

¥1,205 million

Mizuho Trust & Banking Co., Ltd.

¥1,484 million

Current portion of long-term loans payable

0.40000%

Floating

February 28, 2014

(Note 4)

Unsecured1.42000%

Fixed

February 28, 2014

(Note 3)

Unsecured

0.97000%

Floating

August 31, 2013

(Note 3)

Unsecured

0.97000%

Floating

August 30, 2013

(Note 4)

Unsecured1.43000%

Fixed

August 31, 2014

(Note 3)

Unsecured

1.57000%

Fixed

February 29, 2016

(Note 3)

Unsecured

1.15900%

Fixed(Note 5)February 27, 2015

(Note 3)

Unsecured

0.99850%

Fixed(Note 5)February 27, 2015

(Note 4)

Unsecured¥2,146 million
July 30, 2010

Mitsubishi UFJ Trust and Banking Corporation¥2,000 million¥1,000 million

The Yamaguchi Bank, Ltd.

¥500 million

Resona Bank, Ltd.

¥1,300 million

Aozora Bank, Ltd.

¥1,500 million¥600 million

Mizuho Corporate Bank, Ltd.
February 28, 2011
Sumitomo Mitsui Banking Corporation¥600 million

Sumitomo Mitsui Trust Bank, Limited¥3,000 million

Mizuho Corporate Bank, Ltd.

¥100 million

Mizuho Trust & Banking Co., Ltd.

¥400 million¥500 million

Sumitomo Mitsui Banking Corporation
June 10, 2011
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥600 million

Mitsubishi UFJ Trust and Banking Corporation¥200 million¥500 million

Resona Bank, Ltd.
Subtotal¥18,137 million¥4,954 million

Mizuho Corporate Bank, Ltd.
February 28, 2011

¥3,954 million¥600 million

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥2,000 million

Development Bank of Japan Inc.
Mizuho Corporate Bank, Ltd.

Collateral¥4,900 million

The Senshu Ikeda Bank, Ltd.

Sumitomo Mitsui Banking Corporation

Use¥2,450 million
Subtotal

Sumitomo Mitsui Trust Bank, Limited

Interest Rate (Note 2)

Repayment
Date¥2,450 million
May 1, 2013

Sumitomo Mitsui Banking Corporation

Sumitomo Mitsui Banking Corporation

Long-Term loans payable

Balance as of date of document (Note 1)

Fixed/
Floating

May 9, 2011

¥425 million¥425 million

Sumitomo Mitsui Banking Corporation¥1,500 million

The Norinchukin Bank

¥500 million

Mizuho Corporate Bank, Ltd.
July 29, 2011
Sumitomo Mitsui Banking Corporation¥500 million

Resona Bank, Ltd.

¥950 million

The Senshu Ikeda Bank, Ltd.

¥500 million

The Shizuoka Bank, Ltd.

¥500 million¥500 million

The 77 Bank, Ltd.
February 1, 2012
Shinkin Central Bank

¥500 million

The Hiroshima Bank, Ltd.

¥500 million

Mizuho Corporate Bank, Ltd.

¥700 million

52

Overview of Interest-Bearing Debt (2)LenderDrawdown
Date

Aozora Bank, Ltd.

¥100 million

Shinkin Central Bank

¥100 million

Mizuho Corporate Bank, Ltd.

¥200 million

Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation¥200 million

Sumitomo Mitsui Trust Bank, Limited¥100 million

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥100 million

Mitsubishi UFJ Trust and Banking Corporation¥300 million¥1,100 million

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥1,300 million

1,18975%

Fixed (Note 5)

February 28, 2017

(Note 4)

Unsecured

1.19475%

Fixed (Note 5)

February 28, 2017

(Note 6)

Unsecured

0.95750%

Fixed (Note 5)

August 31, 2017

(Note 3)

Unsecured

1.15475%

Fixed (Note 5)

February 28, 2019

(Note 3)

Unsecured

0.89900%

Fixed (Note 5)

February 28, 2019

(Note 4)

Unsecured

1.02225%

Fixed (Note 5)

February 28, 2020

(Note 3)

Unsecured

0.75600%

Fixed (Note 5)

February 28,2018(Note 3)

Unsecured¥500 million

The Yamaguchi Bank, Ltd.

¥2,352 million

The Norinchukin Bank
August 2, 2012¥176 million¥176 million

Sumitomo Mitsui Banking Corporation¥941 million

Development Bank of Japan Inc.
August 2, 2012

¥1,470 million¥1,470 million

Sumitomo Mitsui Banking Corporation¥750 million

Mizuho Corporate Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.

¥2,250 million
February 8, 2013¥750 million¥750 million

The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Corporate Bank, Ltd.

¥400 million

Mizuho Trust & Banking Co., Ltd.

¥500 million
February 28, 2013

¥1,700 million¥2,142 million

Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Limited.

¥500 million

The 77 Bank, Ltd.

¥500 million¥500 million

The Hiroshima Bank, Ltd.
Mizuho Corporate Bank, Ltd.

Collateral¥400 million
March 8, 2012

Sumitomo Mitsui Banking Corporation

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Use

¥500 million

Mizuho Corporate Bank, Ltd.

Sumitomo Mitsui Banking Corporation

Repayment
Date¥200 million

The Bank of Fukuoka

Mizuho Corporate Bank, Ltd.

Fixed/
Floating¥1,200 million

Development Bank of Japan Inc.

Mizuho Corporate Bank, Ltd.

Interest Rate (Note 2)¥200 million
March 2, 2012

Resona Bank, Limited.

Long-Term loans payable

Balance as of date of document (Note 1)

February 28, 2013¥100 million

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥500 million

Mitsubishi UFJ Trust and Banking Corporation¥500 million

53

Overview of Interest-Bearing Debt (3)Drawdown
DateLong-Term loans payable

LenderInterest Rate (Note 2)

Fixed/
Floating

Repayment
Date

Use

Collateral

0.65475%

Fixed (Note 5)

February 28, 2017

(Note 4)

UnsecuredInterest Rate (Note 2)

Fixed/Floating

Redemption date

Use

Collateral¥4,000 million

0.63000%

Fixed

February 28, 2018
(Note 3, 4)

Unsecured¥2,000 million

1.00000%

Fixed

February 28, 2020

Interest Rate (Note 2)

Fixed/Floating

Repayment
Date

Use

Collateral

2.00000%

Fixed

October 31, 2015 (Note 7)－

SecuredBalance as of date of document (Note 1)

Aozora Bank, Ltd.

¥200 million

Shinkin Central Bank

¥200 million

Mizuho Corporate Bank, Ltd.

¥300 million

Mizuho Trust & Banking Co., Ltd.

¥400 million

Sumitomo Mitsui Banking Corporation

March 1, 2013¥300 million

Sumitomo Mitsui Trust Bank, Limited¥200 million

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥700 million

Mitsubishi UFJ Trust and Banking Corporation¥500 million¥200 million

Resona Bank, Limited.
Subtotal¥46,938 million

Total loans¥69,975 million■ Investment Corporation Bonds
Name

Date of issuanceFirst Series Unsecured Investment Corporation Bonds(with pari passu clause among specified investment
corporation bonds)
Second Series Unsecured Investment Corporation Bonds(with pari passu clause among specified investment
corporation bonds)

February 28, 2013
February 28, 2013

Total investment corporation bonds

Balance as of date of document (Note 1)¥6,000 million■ Interest-bearing Deposit
Counterparty
Ito-Yokado Co., Ltd.

Acceptance Date
November 30, 2000

Balance as of date of document (Note 1)¥347 million

Total interest-bearing deposit¥347 million

Total interest-bearing debt

¥76,322 million

Notes: 1. Amounts are rounded down to the nearest million yen.
2. Interest rates as of date of document are indicated.
3. Repayment funds for existing borrowings.
4. Acquisition funds for trust beneficiary interest in real estate.
5. 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.
6. Redemption funds for the Second Series Unsecured Investment Corporation Bonds (private placement limited to qualified institutional investors)
7. Repayment of ¥11,572,000 per month from March 2012.

54

Overview of Unitholders as of March 31, 2013
Major Unitholders

Diversification of Unitholders
Investment Units
Owned(units)Name / Company Name

Ownership ofInvestment Units
Outstanding (%)

Japan Trustee Services Bank, Ltd.
(Trust Account)

37,167

27.11

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

9,991

7.28

Sekisui House Ltd.

7,800

5.69

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

6,441

4.69

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

4,828

3.52

Deutsche Bank AG London-PB Non-Treaty
Clients 613

4,613

3.36

Nomura Bank (Luxembourg) S.A.

4,133

3.01

JOINT CORPORATION

3,000

2.18

Spring Investors Co., Ltd.

2,600

1.89

Financial Institutions(including securities companies)

67 (0.92%)
Mar.
31, 2013
7,246
unitholdersOther domestic firms

Foreign firms

Individuals and others(unitholders)

135 (1.86%)
107 (1.48%)
6,937 (95.74%)

53 (0.87%)
107 (1.77%)
100 (1.65%)

Sep.
30, 2012
6,060
unitholders

5,800 (95.71%)
49 (0.81%)
93 (1.53%)
81 (1.33%)

Mar.
31, 2012
6,079
unitholders5,856 (96.33%)

0%

20%

40%

60%

80%

100%

(units)Goldman Sachs International

2,255

1.64

Total

82,82860.42■The status of large holdings as determined by the large share holdings reports (including
Reports of Changes) submitted by May 14, 2013 is as follows.
Name

DIAM
Co., Ltd.

Tower Investment Sumitomo Mitsui
Trust Bank,Management Co.,
LimitedLtd.

Mizuho Trust &Banking Co.,Ltd

Total units held

11,460 units

7,143 units

14,752 units

13,651 units

Total percentageof ownership

8.36%

5.21%

10.76%

8.61%

Submission dateFeb. 6, 2013

Apr. 1, 2013

Apr. 5, 2013

May 9, 2013

Mar. 31,2012
115,070
units

18,307(13.36%)72,889(53.18%)22,719(16.57%)23,155(16.89%)Sep. 30,2012
115,070
units

53,833(46.78%)

15,100(13.12%)

25,595(22.24%)

20,542(17.85%)Mar. 31,2012
115,070
units

51,821(45.03%)

14,714(12.79%)28,031(24.36%)

20,504(17.82%)

0%

20%

40%

60%

80%

100%

55

Overview of Asset Management Company
Management Structure of the Asset Management Company
As of date of document
Corporate
Name

Sekisui House SI Asset Management, Ltd.
(Financial Instruments Business Operators Director of
Kanto Local Finance Bureau (Kinsho) Number 337)

Established

July 28, 2004

Capital

200 million yen

Shareholders

Number of
officers andemployees

List of Officers

Sekisui House, Ltd. (75%)
Spring Investment Co., Ltd. (25%)

President

Junichi Inoue

Senior Managing
Director (full-time)

Koji Sakamoto (IR & Financial Affairs Department, Real Estate
Investment Department and Management Department)

Director (full-time)

Masaki Katsura (Real Estate Management Department)

Director(part-time)

Yoshiki Inazawa (Senior Manager, Accounting & Finance
Department, Sekisui House)

Director(part-time)

Atsuhiro Kida (Senior Manager, Accounting & Finance
Department (Accounting Group), Sekisui House

Auditor (part-time)

Keizo Yoshimoto (Senior Manager, Secretariat, Sekisui House)

31 (excluding part-time officers)

General Meetingof Shareholders

Organization
Chart

AuditorBoard of Directors
Compliance Committee

Investment Committee

Compliance Officer
President

Risk Management and Compliance Office

Real Estate Investment
Department

Asset Management
Department

Acquisition Section

Asset Management Section

IR & Financial Affairs
Department
Financial
Affairs Section

IR Section

Management
Department
Accounting
SectionGeneral Affairs
Section56

Historical Investment Unit Price
Investment Unit Price and Trading Volume after Change of Sponsors
(yen)

2,000

600,000

500,000
1,500
400,000

300,000

1,000

200,000
500
Sekisui House SI Investment Corporation investment unit price (left axis)

100,000

0
Mar.
2010

TSE REIT Index (right axis)

0
Sep.
2010

Mar.
2011

Sep.
2011

Mar.
2012

Sep.
2012

Mar.
2013

(units)5,000
Trading volume
4,000
3,000
2,000
1,000
0
Mar.
2010

Sep.
2010

Mar.
2011

Sep.
2011

Mar.
2012

Sep.
2012

Mar.
2013
57

Memo

58

◇ 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 Investment Corporation and to undertake investment decisions of
their own volition.
◇ This document is not a disclosure document or report based upon the Financial Instruments and Exchange Act, the Act
on Concerning Investment Trusts and Investment Corporations, public listing regulations of the Tokyo Stock Exchange
or other related laws or 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
Investment Corporation at the time. Information herein is subject to impact from risks, uncertainties, assumptions andother factors. Accordingly, strategies, goals and forecasts regarding future dates do not guarantee the Investment
Corporation’s future performance, operating results or financial position. Actual results may differ significantly fromexplicit or implicit statements made herein regarding future performance, operating results, financial position or otherconditions.
◇ While Sekisui House SI Investment Corporation takes reasonable care in the preparation of this document, it does notguarantee the accuracy and completeness of its content. Readers are also cautioned that the contents of thisdocument may be changed or deleted without prior notice.
◇ Making a copy of, or appropriation of, the content contained herein without prior permission is prohibited.
◇ This English language document is an abridged translation of the Japanese language document issued on the same
day and was prepared solely for the convenience of, and reference by, overseas investors. Sekisui House SI
Investment Corporation gives no warranties as to its accuracy or completeness.