Sekisui House SI Asset Management, Ltd.

Sekisui House SI Residential Investment Corporation
Business Results for the 18th Fiscal Period

November 18, 2014

Sekisui House SI Residential
Investment Corporation

Business Results

8973

for the 18th Fiscal Period from Apr. 1, 2014 to Sep. 30, 2014

1

Contents
Ⅰ. Overview of 18th Fiscal Period Ended September 30, 2014
and Onward

Ⅴ. Forecasts for the 19th Fiscal Period Ending March 31, 2015
and Current Management Policy・Highlights

4・Forecasts for the 19th Fiscal Period Ending March 31, 201534

・Summary of Business Results for 18th Fiscal Period

5・Current Management Policy

35

Ⅱ. Steady Growth through Public Offerings in Two
Consecutive Periods

・Residential Properties Planned, Developed or Owned by Sekisui 36
House or Sekiwa Real Estate Companies

・Overview of Public Offerings in Two Consecutive Periods

8・Effects of Public Offerings in Two Consecutive Periods

10・Overview of Assets Acquired with the 18th Fiscal Period’s
Public Offering

12・Overview of Acquisition Assets for the 19th Fiscal Period’s

14

Public Offering

・Status of Residential Portfolio

20

Ⅲ. Portfolio Management Status of the 18th Fiscal Period
Ended September 30, 2014

・Occupancy Rate and NOI Yields

23

・Residential Properties Occupancy Status by Investment Area

24

・Residential Properties Rent Status

25

・Examples of Measures for Increasing Residential Profitability

26

・Trends in Occupancy and Tenants of Retail Properties

27

・Changes in Unrealized Gain/Loss, Etc.

28

Ⅳ. Financial Activities in the 18th Fiscal Period Ended
September 30, 2014

・Debt Finance

30・Major Financial Indices Related to Interest-Bearing Debt

31

Ⅵ. Appendix

・Balance Sheets

38

・Statements of Income

40・Statement of Cash Flows / Cash Distributions

41

・Summary of Selected Financial Data

42

・History of the Investment Corporation since Listing

43

・Portfolio Map

44・Status of Portfolio

46・List of Properties Owned at End of Period

48

・List of Fiscal Period-End Appraisal Values

52

・Overview of Interest-Bearing Debt

56

・Overview of Unitholders as of September 30, 2014

59

・Overview of Asset Management Company

60

・Historical Investment Unit Price61

2

EstyMaison
MaisonHATCHOBORIKINSHICHO II
PrimerⅠ. Overview of 18th Fiscal Period
Ended September 30, 2014 and Onward

プライムメゾン東桜
マスト博多
マスト博多

Highlights
Management status of the 17th
18th fiscal period ended September 30, 2014
Initial forecast cash distribution
per unit

Amended forecast cash distribution
per unit¥2,120¥2,128(Announced May 14, 2014)(Announced October 3, 2014)

Actual cash distribution per unit

¥2,131

Increase of ¥11 from initial forecast* Cash distributions per unit which were in the ¥10,000 level changed to the ¥2,000 level due to the 5-for-1 split of investment units dated April 1, 2014

Implemented public offerings in two consecutive periods in April and October 2014
 Procured a total of ¥20.6 billion through public offerings in two consecutive periods together with third-party allotment portion Acquired 12 residential properties with above funds, etc.; Asset size based on acquisition price increased to ¥186.0 billion

Agenda concerning partial amendments to the Articles of Incorporation approved andxx
passed at General Meeting of Unitholders in June 2014
 Changed investment target to “only residential facilities,” removing “retail properties which had previously been identified as asupplementary investment target
 Changed trade name of the Investment Corporation to “Sekisui House SI Residential Investment Corporation” to strongly
demonstrate the change in investment target

Forecast cash distribution for the 19th fiscal period ending March 31, 2015
Forecast cash distribution per unit

¥2,130Continue to aim to achieve the strategic target of the Investment Corporation currently underway;

Achieve “asset size of ¥200 billion while giving
consideration to the cash distribution level”

4Summary of Business Results for 18th Fiscal Period
Comparison with Forecasts[Reference] Revised
forecast for fiscal period
ended Sep. 30, 2014
(announced Oct. 3, 2014)

Initial forecast for fiscal
period ended Sep. 30, 2014
(announced May. 14, 2014)

Operating revenue¥5,589 million¥5,588 million¥5,591 million¥2 million

0.1%

Operating income¥2,461 million¥2,466 million¥2,463 million-¥2 million-0.1%

Difference
between actual results andinitial forecasts

Fiscal period
ended Sep. 30, 2014
(183 days) (actual)◇ Factors for differences between actual results andinitial forecasts for the fiscal period ended Sep. 30, 2014

・ Operating income
Operating revenue
Decrease in rent revenue
Increase in other lease business revenue

Ordinary income¥1,950 million¥1,942 million¥1,952 million¥10 million

0.5%

Net income¥1,948 million¥1,940 million¥1,950 million¥10 million

0.5%¥2,128¥2,120¥2,131¥11

0.5%

Cash distributions
per unit::-¥30 million+¥33 million

Operating expense
Increase in expenses related to lease business
Increase in other business expenses::+¥5 million+¥0 million

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

Comparison with Previous Fiscal Period
Fiscal period ended Mar. 31, 2014(182 days) (actual)

Fiscal period ended Sep. 30, 2014
(183 days) (actual)

Operating revenue¥4,952 million¥5,591 million¥638 million

12.9%

・ Operating income

Operating income¥2,242 million¥2,463 million¥221 million

9.9%Operating revenue

Ordinary income¥1,767 million¥1,952 million¥185 million

10.5%

Net income¥1,765 million¥1,950 million¥185 million

10.5%¥2,212(¥11,062)¥2,131(¥10,655)

-¥81

-3.7%

Change◇ Factors for period-on-period changes to actual results
for the fiscal period ended Sep. 30, 2014

Increase in rent revenue
Increase in other lease business revenue
Absence of gain on sale of real estate properties

Cash distributions
per unit

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

Total assets¥156,878 million¥176,892 million¥20,014 million

Interest-bearing debt

¥83,768 million¥92,459 million¥8,691 million

Net assets¥70,059 million¥81,010 million¥10,950 million

Period-end
investment unit price¥102,600(¥513,000)¥106,900(¥534,500)

Number of investment
units issued andoutstanding

798,025 units(159,605 units)

915,240 units(183,048 units)

Period-end market
value¥81,877 million¥97,839 million

Cash distributions¥1,765 million¥1,950 million: +¥656 million: +¥17 million: -¥35 million: +¥326 million: +¥90 million

・ Ordinary income
Decrease in non-operating revenue
Increase in non-operating expenses::-¥5 million+¥30 million

Note 1: Amounts less than the indicated unit are rounded down and percentage figures are rounded to the nearest first decimal place.
Note 2: Investment units are traded at post-split unit price from March 27, 2014 due to the five-for-one split of investment units executed on
April 1, 2014. Thus, taking into consideration the impact of the split, “Cash distributions per unit” and “Period-end investment unit
price” for the fiscal period ended March 31, 2014 (actual) are indicated as the amounts arrived at by dividing the actual amount inparentheses by five and “Number of investment units issued and outstanding” for the fiscal period ended March 31, 2014 (actual) is
indicated as the amount arrived at by multiplying the actual amount in parentheses by five. Also, as reference, “Cash distributions perunit,” “Period-end investment unit price” and “Number of investment units issued and outstanding” for the fiscal period ended
September 30, 2014 (actual) feature the amounts arrived at by either multiplying or dividing the actual figure in parentheses by fivefor the sake of comparison with the fiscal period ended March 31, 2014.

5

Memo

6

Esty Maison Ojima

Ⅱ. Steady Growth through Public Offeringsin Two Consecutive Periods

プライムメゾン東桜
マスト博多
マスト博多

Overview of Public Offerings in Two Consecutive Periods (1)Overview of Public Offering in the 18th Fiscal Period (April 2014)
Issuance resolution
date

April 3, 2014 (Thursday)

Pricing date

April 14, 2014 (Monday)

Number of newly
issued investment
units

117,215 units(of this, 5,615 units of third-party allotment portion)

Offer price per unit

¥95,062 (discount rate: 2.5%)

Issue amount per
unit¥91,844 (underwriting fee: 3.3%)

Total issue amount¥10,765 million(of this, ¥515 million of third-party allotment portion)
For Primary offering

Overview of acquired assets (acquisition date: May 1, 2014)
Acquired assets: 4 residential properties

Total acquisition price: ¥19,355 million

Appraised NOI yield: 5.7%

Total appraisal value: ¥20,870 million

Seller: GK AQUA 2, Sekisui House, Sekiwa Real Estate Chubu
Overview of new borrowings (drawdown date: May 1, 2014): April 21, 2014 (Monday)

Payment date
Third-party allotment portion: May 22, 2014 (Thursday)

Borrowing amount: ¥8,700 million

Borrowing period:
approx. 10 months (floating rate)

Overview of Public Offering in the 19th Fiscal Period (October 2014)
Issuance resolution
date

October 3, 2014 (Friday)

Pricing date

October 15, 2014 (Wednesday)

Number of newly
issued investment
units

102,870 units(of this, 4,900 units of third-party allotment portion)

Assets for acquisition (scheduled):
8 residential properties

Total acquisition price (scheduled):¥15,985 million

Offer price per unit

¥99,157 (discount rate: 2.5%)

Appraised NOI yield: 5.6%

Total appraisal value: ¥16,872 million

Issue amount per
unit¥95,902 (underwriting fee: 3.2%)

Total issue amount¥9,865 million(of this, ¥469 million of third-party allotment portion)
For Primary offering: October 22, 2014 (Wednesday)

Payment date

Overview of assets for acquisition(acquisition date (scheduled): November 4, 2014 and January 15, 2015)

Seller: Sekisui House, Sekiwa Real Estate, Fukuoka Shoji
Overview of new borrowings (drawdown date: November 4, 2014)

Third-party allotment portion: November 18, 2014 (Tuesday)

Borrowing amount: ¥1,000 million
Note : “Appraised NOI yield” is calculated by dividing the total appraised NOI of the acquired assets (and assets
scheduled for acquisition) by their total acquisition price (and scheduled acquisition price) and are rounded to thenearest first decimal place. Appraised NOI is based on appraisal reports by real estate appraisers, the pricing
date being March 1, 2014 for assets acquired with the public offering in the 18th fiscal period (April 2014) and
September 1, 2014 for acquired assets and assets scheduled for acquisition of the public offering in the 19th
fiscal period (October 2014).

Borrowing period:
approx. 10 months (floating rate)

Besides the above borrowings, a new borrowing is scheduled to be executed to be
allotted to part of the funds for acquiring Prime Maison EBISU, which is scheduled
for acquisition on January 15, 20158

Overview of Public Offerings in Two Consecutive Periods (2)Promote enhancementof residential portfolio

Assets acquired withthe 18th fiscal period public offering

Acquiring 12 residential properties with ¥35.3 billion total acquisition price (scheduled) and sold1 retail property, maximally utilizing Sekisui House’s wide-ranging and powerful sponsor support

Utilized bridge fund formed with the
backdrop of Sekisui House’screditworthiness

Esty Maison
KINSHICHO II(Sumida-ku, Tokyo)

Esty Maison
Ojima(Koto-ku, Tokyo)

Properties developed by and planned
making full use of nationwide
deployment capabilities of Sekisui House

Properties owned or planned anddeveloped by the Sekiwa Real
Estate Group

Prime Maison
FUJIMIDAI(Nagoya-City, Aichi)

Esty Maison
TSURUMAI(Nagoya-City, Aichi)

Acquisition assets (scheduled)
for the 19th fiscal period public offering

Properties planned and developed throughproperty planning meetings with Sekisui
House

Sold b-town JINGUMAE II (retail property) on
October 3, 2014 with the 19th fiscal period
public offering

Acquisition dateJuly 28, 2005

Acquisition price¥1,043 million

Sale price¥1,200 million

Book value¥1,013 million(as of date of sale)Appraisal value

Gain on sale
Prime Maison
MORISHITA(Koto-ku, Tokyo)

Prime Maison
SHINAGAWA(Shinagawa-ku, Tokyo)

Prime Maison
EBISU(Shibuya-ku, Tokyo)

Prime Maison
ODORI KOEN
(Sapporo-City,
Hokkaido)

Prime Maison
KAMOKAMOGAWA(Sapporo-City,
Hokkaido)

Prime Maison
MINAMI 2-JO
(Sapporo-City,
Hokkaido)

Prime Maison
CENTRAL PARK
(Fukuoka-City,
Fukuoka)¥983 million(pricing date: September 30, 2014)¥151 million(estimate after deduction of sales
and other expenses)

MAST LIFEYAHIRO(Sumida-ku, Tokyo)* For details of assets acquired with the 18th
fiscal period public offering and acquisition
assets (scheduled) for the 19th fiscal period,
please see pages 12 to 19.
Of the acquisition assets (scheduled) for the
19th fiscal period, Prime Maison EBISU isscheduled to be acquired on January 15,
2015.

Record for the 19th fiscal period(ending March 2015); Record part ofgain on sale (¥78 million) as reserve for
reduction entry
Use reserve for measures that willcontribute to securing a stable
distribution level in the future and such

9

Effects of Public Offerings in Two Consecutive Periods (1)Promoted reduction of the Investment Corporation’s risk premium with the betterment of the following indices caused by the
execution of public offerings in two consecutive periods

Reduction of LTV and Increase of Borrowing Capacity
Total assets
LTV

54%

 Reinforced Financial Base with Further Reduction of LTV

53.4%

350

52.3%

LTV steadily decreasing with enhancement of unitholders’ equity and increase of
unrealized gain
300

About 50.4%(estimate)

Down 3 points from 17th FP

End of 17th FP

LTV based on total assets

50.4%

Down 3 points

LTV based on appraisal

48.9%

Down 4 points

250

200

Borrowing capacity

As of January 15, 2015 (estimate)
49%

44%

18th FP
public offering

19th FP
public offering* LTV based on total assets (appraisal) = Total interest-bearing debt ÷ Book value of total assets (±unrealized gain/loss) × 100

Approx. ¥19.2 bn(estimate)

150

100

Approx.
¥10.7 bn

39%

 Further Enhanced Borrowing Capacity
As of January 15, 2015, the borrowing capacity up to total assets LTV of 55% will increase
to an estimate of approx. ¥19.2 billion (approx. ¥13.7 billion increase)50

Approx.
¥5.5 bn

Borrowing capacity
Approx.¥19.2 bn

34%

Estimated cash flow funded fromdepreciation and amortization*
Approx.¥2.7 bn annually

Current capacity forproperty acquisition
Approx.¥22.0 bn

0End of 17th FP(Mar. 31, 2014)

End of 18th FP Jan. 15, 2015 expected(Sept. 30, 2014) (19th FP after public offering)* Calculated based on estimated annual depreciation and amortization of 106 properties scheduled to be under managementin the 19th fiscal period.

Increase of Asset Size and Market Value
Marketvalue

200 ,000

As of end of 17th FP

As of October 31, 2014¥81.8 billion market value¥110.4 billion market value

180 ,000

18th FP
public offering

19th FP
public offering¥186.0 bn

Achieved ¥100 billion
market value(as of October 31, 2014)

Number of investment units issued
and outstanding: 1,018,110(as of November 18, 2014)

Contributed to further
increase of liquidity ofinvestment units

Aim to capture new investor base with investment standard for market value of ¥100 billion
or more Enhancement of Residential Portfolio and Diversification of Risk alongside
Increase of Asset Size

¥171.0 bn

Asset size Increase of Liquidity of Investment Units alongside Increase of Market Value

End of 17th FP (ended March 2014)

As of January 15, 2015 (scheduled)

Number of residential properties: 87
Rate of residential properties: 88.4%*
Number of rentable residential units: 6,072

Number of residential properties: 99
Rate of residential properties: 91.1%*
Number of rentable residential units: 7,737

160 ,000¥151.7 bn
Increase of ¥34.2 billion from end of 17th FP* “Rate of residential properties” is calculated based on the acquisition prices (scheduled) of owned assets as of each period.

In sight is the achievement of the medium-term target, “asset size of ¥200 billion”

140 ,000

End of 17th FP(Mar. 31, 2014)

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

Expected
Jan. 15, 2015
(19th FP after public offering)10Effects of Public Offerings in Two Consecutive Periods (2)Public offerings executed in line with favorable markets contributed to securing a stable distribution level and increase of NAV
per unit

Impact on Cash Distribution per Unit
Secure stable distribution level and aim for further increase of distribution level Utilization of Capacity to Acquire Properties (Approx. ¥22.0 bn)¥2,130¥2,107¥2,212¥2,131(Distribution per unit)(Distribution per unit)(Distribution per unit)

Respond to absence of gain on sale (scheduled to be recorded for the 19th FP)
expected for the 20th FP onward and decrease of income because of increaseof consumption tax to 10%, etc.

(Distribution per unit)(Forecast)

Estimated impact
on distribution per unit

From absence of gain on sale
(20th FP)

From increase of consumption tax(21st FP)

-¥71

-¥31

 Utilization of Gain on Sale (Approx. ¥151 mn) and its Reserve (¥78 mn)
16th fiscal period(Sept. 2013)

17th fiscal period(Mar. 2014)

18th fiscal period(Sept. 2014)

Impact on NAV per Unit
¥92,88019th fiscal period(Mar. 2015)

Reserve part of gain on sale of b-town JINGUMAE II, carrying it forward to the
20FP onward to be utilized in management of distributions

About ¥93,400(estimate)

Realized steady increase of NAV per unit

¥87,444¥82,555

 Increase of Unitholders’ Capital per Unit
Both 18th FP and 19th FP public offerings were executed with conditions
exceeding NAV per unit at end of preceding periods
18th FP public offering (Issue price) ¥91,844 > ¥87,444 (NAV per unit at 17th FP end)
19th FP public offering (Issue price) ¥95,902 > ¥92,880 (NAV per unit at 18th FP end)

 Acquired Properties at Less than Appraisal Value and Sold Property with
Unrealized Loss
• All properties acquired with 18th FP and 19th FP public offerings were acquired
at less than the appraisal value (–6.4% compared to appraisal value)
End of 16th FP(Sept. 30, 2013)

End of 17th FP(Mar. 31, 2014)

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

After 19th FP
public offering(expected for Jan. 15, 2015)• Unrealized loss of ¥30 million at end of 18th FP dissolved with sale of b-town
JINGUMAE II at start of 19th FP

Note : NAV for each fiscal period is calculated using the amount calculated by market value net assets based on appraisal values less total distributions in each fiscal period. NAV per unit after the 19th fiscal period public offering is an estimate calculatedusing the NAV at the end of the 18th fiscal period (ended September 30, 2014) and taking into account appraisal values of assets for acquisition with the 19th fiscal period public offering (scheduled), the number of new investment units issued
through the 19th fiscal period public offering, etc. Also, as a split of investment units was executed on April 1, 2014, cash distribution per unit and NAV per unit in and before the 17th fiscal period (ended March 31, 2014) are adjusted according to
the split of investment units.

11Overview of Assets Acquired with the 18th Fiscal Period’s Public Offering (1)Esty Maison KINSHICHO II
Greater Tokyo /Major Urban Areas

Location
Nearest station

Property age
6.8 years

Esty Maison Ojima

Walking distance tostation approx. 5 min.

Greater Tokyo /Major Urban Areas

Property age
7.1 years

Walking distance tostation approx. 2 min.

Single type

Acquisition price

Acquisition price¥6,720 million¥7,120 million

Appraisal value

Appraisal value¥7,160 million¥7,820 million

Appraised NOI Yield

Appraised NOI Yield

5.4%

5.5%

Occupancy rate

Occupancy rate

94.1%

94.9%

(as of September 30, 2014 )(as of September 30, 2014 )Kotobashi, Sumida-ku, Tokyo
Approx. 5-minute walk from Kinshicho Station on the JR Sobu
and Tokyo Metro Hanzomon lines

Construction/number of floors RC, 15F
Completed

Single type

January 17, 2008

Location
Nearest station

Ojima, Koto-ku, Tokyo
Approx. 2-minute walk from Ojima Station on the Toei Subway
Shinjuku line

Construction/number of floors RC, 15F
Completed

September 13, 2007

Rentable units

294 residential units (as well as 1 shop section)

Rentable units

313 residential units (as well as 3 shop sections)

Acquisition date

May 1, 2014

Acquisition date

May 1, 2014

Note: The above appraisal values are those on the appraisal reports by real estate appraisers as of the acquisition of the properties and appraised NOI yields are calculated by dividing the appraised NOI based on the appraisal reports by real estateappraisers as of the acquisition of the properties by the acquisition price and rounded to the nearest first decimal place respectively. Also, the reference date for the property ages is the date of this document, and is rounded down to the nearest firstdecimal place. The same follows hereafter.

12

Overview of Assets Acquired with the 18th Fiscal Period’s Public Offering (2)Prime Maison FUJIMIDAI

Esty Maison TSURUMAI

Property age
7.5 years

Walking distance tostation approx. 11 min.

Family type

Acquisition priceAppraisal value

Appraised NOI Yield

Occupancy rate

¥1,755 million¥1,850 million

6.2%

92.2%

Major Cities Nationwide

Location

Fujimidai, Chikusa-ku, Nagoya-shi,
Aichi

Nearest station

Approx. 11-minute walk from
Chayagasaka Station and Jiyugaoka
Station on the Nagoya Municipal
Subway Line

Construction/
number of floors

RC, 4F

Completed(as of September 30, 2014 )Property age
14.9 years

Walking distance tostation approx. 5 min

Family type

Acquisition priceAppraisal value

Appraised NOI Yield

Occupancy rate

¥3,760 million¥4,040 million

6.4%

Major Cities Nationwide

Location

Chiyoda, Naka-ku, Nagoya-shi,
Aichi

Nearest station

Approx. 5-minute walk from
Tsurumai Station on the Nagoya
Municipal Subway Line

Construction/
number of floors

SRC / S, 14F / B2F

Completed

November 27, 1999100%
(as of September 30, 2014 )April 24, 2007

Rentable units

66 residential units

Acquisition date

May 1, 2014

Rentable units

183 residential units(as well as 1 shop section)

Acquisition date

May 1, 201413

Overview of Acquisition Assets for the 19th Fiscal Period’s Public Offering (1)Prime Maison EBISU
Greater Tokyo /Major Urban Areas

Property age
0.4 years

Walking distance tostation approx. 4 min.

Single type

Planned acquisition priceAppraised NOI Yield¥3,585 million

4.9%

Appraisal value

Occupancy rate

¥3,820 million(62.7% based on applications)56.1%(as of September 30, 2014 )Model room (single type)

Location
Nearest station

Ebisu, Shibuya-ku, Tokyo
Approx. 4-minute walk from Ebisu Station on JR
Yamanote, Saikyo and Shonan Shinjuku lines

Construction/number of floors RC, 12F
Completed

June 5, 2014

Rentable units

98 residential units (as well as 2 shop sections)

Acquisition date

January 15, 2015

Model room (compact type)

Entrance【Reference】 1F shop section of the property
 New York-style espresso cafe

 Italian casual restaurant[Espresso D Works][Reggiano]

Note : The occupancy rates as of the end of September 2014 of acquisition assets for the 19th fiscal period public offering are based on
figures and information supplied from sellers (scheduled). The same follows hereafter.

14

Overview of Acquisition Assets for the 19th Fiscal Period’s Public Offering (2)Prime Maison SHINAGAWA
Greater Tokyo /Major Urban Areas

Property age
0.7 years

Walking distance tostation approx. 3 min.

Compact type

Acquisition price

Kitashinagawa, Shinagawa-ku, Tokyo

Location¥1,680 million
Nearest station

Appraisal value¥1,700 million

Approx. 10-minute walk from Shinagawa Station on JR lines
and approx. 3-minute walk from Kitashinagawa Station on the
Keikyu Main Line

Construction/number of floors RC, 6F
Completed

Appraised NOI Yield

February 18, 2014

5.0%

Rentable units

49 residential units (as well as 1 shop section)

Occupancy rate

Acquisition dateNovember 4, 2014100%
(as of September 30, 2014 )Model room

“Green First” Eco-Friendly Residence Promoted by Sekisui House
The property is equipped with solar batteries, storage batteries and emergency power
generators for greater safety and security in case of emergencies. In addition, withgreenery that brings richness to the city based on the “Five Trees” project of Sekisui
House, the main sponsor of the Investment Corporation, the apartment building is
considerate not only to residents but also the nearby townscape and ecosystem.

【Overview of greenery】
Solar panel

Solar
panel

Semi-outdoor greenery
Rooftopgreenery“Five Trees” Project
The “Five Trees” project is Sekisui House’s gardening proposal as a dialogue withnature. With the intention of “three trees for the birds and two for the butterflies,”
Sekisui House plants familiar species of trees native to Japan according to the regional
climate in an attempt to revitalize biodiversity with the creatures that dwell with plants.
Wall greenery

Roadside greenery

Wall greenery15

Overview of Acquisition Assets for the 19th Fiscal Period’s Public Offering (3)Prime Maison MORISHITAGreater Tokyo /Major Urban Areas

Location
Nearest station

Property age
1.5 years

Single type

Property age
3.8 years

Walking distance tostation approx. 3 min.

Single type

Acquisition price¥1,720 million¥1,670 million

Appraisal value

Appraisal value¥1,770 million¥1,710 million

Appraised NOI Yield

Appraised NOI Yield

5.2%

5.4%

Occupancy rate

Occupancy rate

97.7%

97.8%

(as of September 30, 2014 )(as of September 30, 2014 )Approx. 4-minute walk from Morishita Station on the Toei Subway
Shinjuku and Oedo lines

May 14, 2013

Greater Tokyo /Major Urban Areas

Acquisition priceMorishita, Koto-ku, Tokyo

Construction/number of floors RC, 12F
Completed

MAST LIFE YAHIRO

Walking distance tostation approx. 4 min.

Location
Nearest station

Yahiro, Sumida-ku, Tokyo
Approx. 3-minute walk from Yahiro Station on the Keihin Oshiage Line

Construction/number of floors RC, 13F
Completed

January 14, 2011

Rentable units

86 residential units

Rentable units

102 residential units (as well as 1 shop section)

Acquisition dateNovember 4, 2014

Acquisition dateNovember 4, 201416

Overview of Acquisition Assets for the 19th Fiscal Period’s Public Offering (4)Prime Maison ODORI KOEN
Major Cities Nationwide

Property age
5.9 years

Walking distance tostation approx. 2 min.

Family type

Acquisition priceAppraised NOI Yield

Location

Odori-Nishi, Chuo-ku, Sapporo-shi, Hokkaido¥2,660 million

6.1%

Nearest station

Approx. 2-minute walk from Odori Station on the
Sapporo Municipal Subway Tozai Line

Appraisal value

Occupancy rate

Construction/
number of floors

SRC, 18F / B1F¥2,830 million

92.2%(as of September 30, 2014 )Entrance

Completed

December 15, 2008

Rentable units

125 residential units (as well as 2 shop sections)

Acquisition dateNovember 4, 2014

Lobby

Residential unit with furniture

北陸銀行
札幌支店

Odori Park
17

Overview of Acquisition Assets for the 19th Fiscal Period’s Public Offering (5)Prime Maison MINAMI 2-JO
Major Cities Nationwide

Location
Nearest station

Property age
4.9 years

Prime Maison KAMOKAMOGAWA

Walking distance tostation approx. 6 min.

Major Cities Nationwide

Property age
5.0 years

Walking distance tostation approx. 2 min.

Compact type

Acquisition price

Acquisition price¥1,470 million¥970 million

Appraisal value

Appraisal value¥1,670 million¥1,100 million

Appraised NOI Yield

Appraised NOI Yield

6.7%

6.7%

Occupancy rate

Occupancy rate

98.2%

98.7%

(as of September 30, 2014 )(as of September 30, 2014 )Minami-Nijo Nishi, Chuo-ku, Sapporo-shi, Hokkaido
Approx. 6-minute walk from Nishi-Juitchome Station on the Sapporo
Municipal Subway Tozai Line

Construction/number of floors RC, 14F
Completed

Compact type

November 30, 2009

Location
Nearest station

Minami-Nanajo Nishi, Chuo-ku, Sapporo-shi, Hokkaido
Approx. 2-minute walk from Hosui-Susukino Station on the Sapporo
Municipal Subway Toho Line

Construction/number of floors RC, 13F
Completed

October 30, 2009

Rentable units

117 residential units (as well as 1 shop section)

Rentable units

96 residential units

Acquisition dateNovember 4, 2014

Acquisition dateNovember 4, 201418

Overview of Acquisition Assets for the 19th Fiscal Period’s Public Offering (6)Prime Maison CENTRAL PARK
Major Cities Nationwide

Property age
3.7 years

Distance to station bybus approx. 10 min.

Family type

Acquisition priceAppraised NOI Yield¥2,230 million

6.0%

Appraisal value

Occupancy rate

¥2,272 million
Location

93.4%(as of September 30, 2014)

Kashii Teriha, Higashi-ku, Fukuokashi, Fukuoka

Nearest station

Approx. 10 minutes by bus from
Chihaya Station on the JR
Kagoshima Main Line

Construction/
number of floors

RC, 14F

CompletedFebruary 3, 2011

Rentable units

136 residential units (as well as 1
leased land section)

Acquisition dateNovember 4, 2014

* Part of the land of the property (lot: 23-32) is leased land and the building (store) on the leased land is owned by the leaseholder. Appraised NOI is calculated by adding thesingle-year NOI of the leased section under the DCF method on the real estate appraisal report to the NOI of the residential section.

“Fukuoka Island City”: Leading Model City on which the Property Sits
At Fukuoka Island City, born with the purpose of strengthening port functions of the Port of Hakata, “port building” and “town development” are underway, aiming for a leading model city that will lead the futureof Fukuoka City.
With Fukuoka City’s first public coordinated elementary and junior high school as well as a children’s
hospital and such, there are facilities for child-rearing households, and further population inflow is expected
for this area in the future, centering on families.
Children’s hospital (opened Nov. 2014)

Teriha Elementary and Junior High School

Image of the completion of Island City
(from Island City Project (Dec. 2009))[Provided by Fukuoka City]

19

Status of Residential Portfolio
Further promotion of qualitative improvement of the portfolio through the acquisition of high-quality residential properties
Diversification statusby property age(based on acquisition price)

Diversification status by area(based on acquisition price)

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

Diversification status by floor area(based on leasable residential units)More than 10 minutes
10 years or more

Major Cities
Nationwide

End of 17th FP(Mar. 31, 2014)

25.6%

Less than 5 years

Greater Tokyo /Major Urban Areas

16.1% 10.5%

70.5%

Averageproperty age

Greater Tokyo

74.4%

Of these,Tokyo’s 23 wards

63.4%

7.9 years

Greater Tokyo /Other Urban Areas

3.9%

31.1%

More than 5 minutes
to within 10 minutes

32.7%
5 years toless than
10 years

10 years or more
Greater Tokyo /Major Urban Areas

26.0%

Greater Tokyo

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

70.6%
Of these,Tokyo’s 23 wards

74.0%

16.5%

Less than 5 years

9.2%

More than 10 minutes

9.5%

5 years toless than
10 years

31.8%

More than 10 minutes

9.9%

27.9%

69.0%

Averageproperty age

7.5 years

90.1%

Greater Tokyo /Other Urban Areas

3.1%
Primarily Greater Tokyo

48.9%
30m2 to lessthan 50m2

33.0%

38.4㎡

24.6%

100m2 or more

0.7%
Less than 30m2

47.0%
30m2 to lessthan 50m2

5 years toless than
10 yearsMore than 3 minutes
to within 5 minutes

69.4%

30.4%

Primarily new properties

Average area
per unit

50m2 to lessthan 100m2

Within 3 minutes

More than 5 minutes
to within 10 minutes Within 10
26.8% Minute walk

63.5%

0.7%
Less than 30m2

30.1%

15.0% 15.6%

72.1%

100m2 or more

More than 3 minutes
to within 5 minutes

Greater Tokyo /Major Urban Areas
Of these,Tokyo’s 23 wards

23.1%

27.3%

Major Cities
Nationwide

Greater Tokyo

38.0㎡

50m2 to lessthan 100m2

Within 3 minutes

74.3%
Less than 5 years

27.9%

Average area
per unit

26.6%

90.5%

10 years or more

0.7%
Less than 30m2

More than 3 minutes
to within 5 minutes

8.0 years

3.4%

30m2 to lessthan 50m2

90.4%

More than 5 minutes
to within 10 minutes Within 10
28.6% Minute walkGreater Tokyo /Other Urban Areas

21.9%

100m2 or more

49.5%
Within 10
Minute walk

Averageproperty age

64.4%

50m2 to lessthan 100m2

Within 3 minutes

73.4%

Major Cities
Nationwide

After 19th FP
public offering(scheduled)

9.6%

27.6%

Primarily properties near stations

Average area
per unit

39.1㎡

Primarily single and compact types

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

20

Memo

21

Prime Maison MORISHITA

Ⅲ. Portfolio Management Statusof the 18th Fiscal Period Ended September 30, 2014

プライムメゾン東桜
マスト博多
マスト博多

Occupancy Rate and NOI Yields
Monthly Occupancy Rates Chart
Residential

Other real estate in trust (retail properties)

Total

100%
97.7%

97.7%

97.5%

97.1%

97.1%

95%

90%

85%

80%

75%
Sep.
Oct.
2012
End of 14th
Fiscal Period

Nov.

Dec.

Jan.
2013

Feb.

Mar.

Apr.

May

June

End of 15th
Fiscal Period

July

Aug.

Sep.

Oct.

Nov.

Dec.

End of 16th
Fiscal Period

Feb.

Mar.

Apr.

May

June

July

End of 17th
Fiscal Period

Aug.

Sep.

End of 18th
Fiscal Period

NOI Yields

Occupancy Rates
Fiscal period ended September 30, 2014 (18th fiscal period)
As of end of the fiscal period

Jan.
2014

Fiscal period ended September 30, 2014

Average for the fiscal period(18th fiscal period)

Residential

96.3%

95.7%

5.1%

Other real estate in trust(retail properties)

99.9%

99.9%

5.4%

Total

97.1%

96.7%

5.1%

Note 1: “Occupancy Rates” in the above chart indicate 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 September 2012 to
September 2014.
Note 2: The average occupancy rate for the 18th fiscal period ended September 30, 2014 in the above table indicates the average of occupancy rates as of the end of each month during the fiscal period ended September 2014.
Note 3: The NOI yields in the above table are ratios obtained by dividing the annualized leasing NOI of assets pertaining to each section as well as all assets owned by the Investment Corporation in the fiscal period ended September 30, 2014
(18th fiscal period) by the total acquisition price.
Note 4: All of the figures above are rounded to the nearest first decimal place.

23

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

Greater Tokyo / Other Urban Areas

Major Cities Nationwide

Cancellations increased temporarily centering
on residential types of 30m2 to less than 50m2
but there is still stability overall

While there were large cancellations at someproperties in August, the occupancy rate isrecovering due to early response

While decreasing temporarily with the increaseof cancellations in April, the occupancy rateincreased towards the end of the period

Average occupancy rate during the 18th FP: 95.5%

Average occupancy rate during the 18th FP: 95.0%

Average occupancy rate during the 18th FP: 96.0%

Number of properties:

59 properties

Total rentable area:

145,642.45m2

Number of rentable units:

4,340 units

Area data

Number of properties:

4 properties

Total rentable area:

13,985.89m2

Number of rentable units:

319 units

Area data

Number of properties:

28 properties

Total rentable area:

113,880.78m2

Number of rentable units:

2,309 units

Area data

The average occupancy rate during the 18th FP increased 0.5 points compared to the corresponding period of the previous
year as a result of management focusing on occupancy, as well as efforts for contracts and renewals with increased rents
Change in Occupancy Rates by Investment Area Classification
Greater Tokyo/Major Urban Areas

100%
97.7%

Major Cities Nationwide

97.5%

97.4%

96.4%

Greater Tokyo / Other Urban Areas

Residences overall
97.5%

96.8%

96.8%

96.6%

96.1%

96.3%

96.4%
95.5%

96.7%

95%

96.6%

24

95.4%

95.3%

95.3%

94.6%

94.0%
93.8%

90%
Average occupancy rate
： 96.0%during the 15th FP

Average occupancy rate
： 95.2%during the 16th FP

Average occupancy rate
： 95.7%during the 17th FP

Average occupancy rate
： 95.7%during the 18th FP

85%
End of Sept. 2012(End of 14th FP)

End of Dec.

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

End of June

End of Sept. 2013(End of 16th FP)

End of Dec.

End of Mar. 2014(End of 17th FP)

End of June

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

Note: “Change in occupancy rates by investment area classification” shows the month-end occupancy rates with classification by investment area based on residential properties owned as of the end of each month and are rounded to the nearest fist decimal
place. Also, the average occupancy rates during the periods are the average occupancy rates as of the end of each month during each period. Furthermore, “area data” shows figures for properties owned as of the end of the 18th FP (ended September2014).

24

Residential Properties Rent Trends
Rent Trends in Contract Renewals

Rent Trends in New Contracts
14th FP

15th FP

16th FP

17th FP

No. of new contract

499

547

588

704

699

Total increase
in rent(number of cases)¥811
thousand
(194)

¥411
thousand
(138)

¥678
thousand
(193)

¥736
thousand(190)¥1,101
thousand(225)

Total decrease
in rent(number of cases)-¥1,101-¥1,514-¥1,337-¥2,265-¥1,845thousand(152)

thousand(223)

thousand(186)

thousand(302)

thousand
(244)

-¥290

-¥1,103-¥659-¥1,528-¥744

thousandthousandthousandthousandthousand

-0.5%

-1.7%

-0.9%

-1.8%

-0.8%

Change in rent (net)Rate of change in rent
against previous rent

14th FP

15th FP

16th FP

17th FP

18th FP

No. of renew contract

616

657

641

923

972

Total increase
in rent¥7
thousand
(1)

-

-

-

¥20
thousand(6)-¥34
thousand(5)-¥40
thousand
(9)

-

-¥31
thousand(19)

thousand(5)

Change in rent (net)-¥26
thousand-¥40
thousand--¥31
thousand-¥17
thousandRate of change in rent
against previous rent

-0.0%

-0.1%

-

-0.0%

-0.0%

18th FP(number of cases)

Total decrease
in rent(number of cases)

Both number of cases and rate of new contracts for increased rent rose
Ratio of decrease in rent

100%

Ratio of no rent change-¥38

Efforts for renewals with increased rent gradually materializing
Ratio of decrease in rent

Ratio of increase in rent

Ratio of no rent change

Ratio of increase in rent

100%
30.5%
40.8%

75%
30.7%

50%

31.6%

35.5%
34.0%

25%

0.8%
42.9%

2.1%

1.4%

34.9%

0.5%

75%

32.9%

50%

99.0%

98.6%

100.0%

97.9%

98.9%

30.1%

25%

38.9%
25.2%

32.8%

27.0%

32.2%

0.6%

0.2%

0%

0%

14th fiscal period 15th fiscal period 16th fiscal period 17th fiscal period 18th fiscal period

14th fiscal period 15th fiscal period 16th fiscal period 17th fiscal period 18th fiscal period
Replacement rate

12.8%

12.6%

11.4%

12.8%

11.2%

Renewal
rate

82.4%

81.6%

82.1%

83.2%

85.2%

Note: The “rate of change in rent against previous rent” is the ratio of the total change in rent for each period for new or renewed contracts against the total of previous rent. The “renewal rate” is the ratio of the number of residential units at which contracts wererenewed among the number of residential units with contracts maturing during each period. Also, the “replacement rate” is the total ratio of the number of new contracts in residential units the Investment Corporation owns as of the end of each month ofeach period against the number of leasable residential units. Both of these ratios are rounded to the nearest first decimal place.

Trend in Unit Rent per Tsubo for Occupied Space■ Calculated based on residential properties owned as of the end of the 18th FP that have been owned since the end of the 17th FP.
End of fiscal period
ended March 2014(end of 17th FP)¥10,935 per tsubo-0.28%End of fiscal period
ended September 2014(end of 18th FP)¥10,904 per tsubo(down ¥31 from the end of the previous fiscal FP)■ Calculated based on residential properties
owned as of the end of the 18th FP.

¥10,894 per tsubo

Note: Unit rent per tsubo for occupied space above does not include the rent of shops and offices within residential properties as well as the rent of residential properties that have master lease agreements with rent guarantee concluded withmaster lease companies for its calculation.

25

Examples of Measures for Increasing Residential Profitability
The Investment Corporation is considering various measures aimed at increasing profitability and executing mainly those throughwhich high cost effectiveness can be expected

Cost Reduction Measure: Construction for Replacement to LED Light Fixtures
 Executed replacement of common area light fixtures to LED as consideration towards the environment through energy
conservation and CO2 emissions reduction from the reduction of electricity use costs (amount) at common areas【Overview of construction】
Number of properties

2 properties
Esty Maison GINZA (135 units)

Name of properties

Prime Maison GINZA EAST (144 units)

Construction period

About 1 week for both

Construction cost

Approx. ¥8 million for both properties(all capital expenditure)

Annual electricity use costs, etc. are expected to decrease by approx. ¥3 million(estimate) as a result of the replacement to LED light fixtures on the left
(Construction cost of approx. ¥8 million expected to recover in about 3 years)

Replacements are scheduled to be executed at 6 properties in the 19th fiscal period (ending March 2015) centering on those at which reductionof electricity use costs (amount) would bring about high effects; Replacements scheduled to continue into the 20th fiscal period and beyond

Measure for Leasing Enhancement: Construction for Floor Plan Change Since Esty Maison KAMIGOFUKU has a unique floor plan, construction for a change of floor plan was executed and earlyleasing was sought for 1 residential unit on the top floor at which long-term vacancy was feared【Overview of construction】
Name of property

Esty Maison KAMIGOFUKUContent of construction

Change 97.83m2 from 1LDK floor plan to
2LDKConstruction period

Mid July, 2014 to late August, 2014

Construction cost

Approx. ¥2 million (all capital expenditure)

The residential unit was contracted in the month after the completion of
construction as a result of the construction for floor plan change on the left
(Property’s occupancy rate increased by 4.3%)

Continue measures for leasing enhancement in the 19th fiscal period (ending March 2015) onward as well, according to the characteristics ofvacant residences
26

Trends in Occupancy and Tenants of Retail Properties
With the completion of leasing of b-toss IKEBUKURO, 100% occupancy was achieved as of the end of the 18th FP for the property;
We will continue to focus on stable operation of all retail properties

Occupancy Status of Retail Properties
Occupancy Status in the 18th FP ended September 2014
Retail properties’ name

End of 17th FP End of 18th FP Period average

HAMAMATSU Plaza

100%

100%

100%

b-town JINGUMAE II

100%

100%

100%

RINKU HAGURAZAKI Plaza

100%

100%

100%

b-town MINAMIAOYAMA

100%

92.3%

98.7%

KOJIMA NEW KAMIFUKUOKA

100%

100%

100%

b-toss IKEBUKURO

88.8%

100%

94.4%

Joy Square Yugawara

100%

100%

100%

Bell Plaza Shopping Center

100%

100%

100%

Retail properties total

99.8%

99.9%

99.9%

Contract and Renewal Status in the 18th FP ended
September 2014●●

Concluded a building lease agreement with a new tenant for the
2nd floor of b-toss IKEBUKURO, which had been a long-term vacantsection, on June 27, 2014
Property nameb-toss IKEBUKURO (2nd floor)

Business type

Restaurant businessContract period

3 years

Leased floor area

149.69m2

Contract with existing tenant on 1st floor of b-toss IKEBUKURO whichmatured on September 5, 2014 renewed with same terms
Property nameb-toss IKEBUKURO (1st floor)

Business type

Restaurant businessContract period

3 years

Leased floor area

96.59m2

Main Issues on Tenants at Retail Properties and Future Policies
Name
HAMAMATSU PlazaRINKU HAGURAZAKI Plaza(Underlying Land)

Current status

Future policy● Ito-Yokado, the tenant associated with the section of whose ownership

Deepen relation with other existing tenants; Sekisui House, a quasico-owner of the facility, is focusing on attracting a succeeding tenant assoon as possible, in order to make the whole facility more attractive

the Investment Corporation sold fearing risk of significant decrease ofprofitability, decided to close in mid-January, 2015
● Kojima NEW Rinku Hagurazaki Store closed on July 27, 2014

(Kojima New Rinku Hagurazaki Store)● Received notice of cancellation for March 31, 2015 from an existingb-toss Ikebukuro

tenant at the property (4th floor restaurant (leased floor area:
149.69m2))● Received notice of cancellation for December 5, 2014 from an existing

Bell Plaza Shopping Center

tenant at the property (insurance business (leased floor area:
200.00m2))

Agreement on establishment of land leasehold rights for businesspurposes with the tenant is ongoing. Currently, Kojima Co., Ltd. istrying to find a successor tenant
While there is no impact on the 19th fiscal period, we will execute agile
leasing strategies under cooperation with the PM company and focus
on leasing to a successor tenant as soon as possible
We will execute agile leasing strategies under cooperation with the PMcompany and focus on leasing to a successor tenant as soon as
possible27

Changes in Unrealized Gain / Loss, Etc.
Entire Portfolio(million yen)
10,000(%)
10.0
Unrealized gain

The entire portfolio’s unrealized gain increased further in the 18th fiscal period
ended September 30, 2014 (unrealized loss of retail properties continues to shrink)

5.0+ ¥5,947 million
Unrealized gain / loss ratio

5,000+ 3.6%+ ¥1,488 million- ¥7,455 million- ¥6,031 million- ¥4,211 million- ¥2,413 million

0.0

0+ 1.0%-1.7%-5.0-5,000-3.4%

Unrealized gain / loss ratio (left axis)-5.6%

Unrealized gain / loss (right axis)

-7.6%
-10.0

-10,000
End of 13th FP(Mar. 31, 2012)

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

End of 15th FP(Mar. 31, 2013)

End of 16th FP(Sept. 30, 2013)

End of 17th FP(Mar. 31, 2014)

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

Appraisal value¥90,771 million¥101,080 million¥121,380 million¥136,094 million¥149,737 million¥173,301 million

Period-end
book value¥98,226 million¥107,112 million¥125,592 million¥138,507 million¥148,249 million¥167,353 million

RetailResidential

Status by Asset Class
End of 17th FP

End of 18th FP

Appraisal value¥134,874 million¥158,249 million

Book value¥131,013 million¥150,139 million

Unrealized gain
/ loss+¥3,860 million+¥8,109 million

Unrealized gain
/ loss ratio

2.9%

5.4%

Appraisal value¥14,863 million¥15,052 million

Book value¥17,235 million¥17,214 million

Unrealized gain
/ loss-¥2,372 million-¥2,161 million

Unrealized gain
/ loss ratio-13.8%-12.6%

Major factors in the increase or improvement of unrealized gain / loss ratio
Unrealized gain / loss ratio increased 2.5 points● Appraisal values, etc. increased at 73 out of 87 properties due to decrease of cap rate, etc.
(Increased at 73 properties, maintained at 8 properties and decreased at 6 properties)● Acquired new properties (4 properties) at price discounted from appraisal value during the 18th FP

Unrealized gain / loss ratio improved 1.2 points● Appraisal values, etc. increased at 4 out of 8 properties due to decrease of cap rate, etc.
(Increased at 4 properties, maintained at 3 property and decreased at 1 property)● HAMAMATSU Plaza saw a decrease (-¥4 million) with the passage of the land leasehold
agreement of the HAMAPLA Frespo Building

Note: Period-end unrealized gain / loss ratio = Period-end unrealized gain / loss ÷Period-end book value

Period-end unrealized gain / loss = Period-end appraisal value – Period-end book value

28

Prime Maison SHINAGAWA

Ⅳ. Financing Activities in the 18th Fiscal Period
Ended September 30, 2014

プライムメゾン東桜
マスト博多
マスト博多

Debt Finance
Major Initiatives Since the 18th FP ended September 30, 2014
Status of credit rating(as of date of document) August 2014: Issued investment corporation bonds with redemption periods of 10 years, following
the issuance in February 2014

Succeeded in issuing bonds with lowest ever level of coupon

Japan Credit Rating Agency, Ltd.
(JCR)

Applicable interest rate of 10-year bonds (¥3 billion): 0.871% per year (spread: 0.35% based on JGB)

AA- (Stable) August 2014: Refinanced a total of ¥12.809 billion (short-term and long-term borrowings (period: 3
years 6 months))
Promoted further extension of borrowing periods, fixing of interest rates and diversification of
repayment dates through borrowings of 8 and 7 years (fixed interest rates with conclusion ofinterest rate swap agreements) and the issuance of the above investment corporation bonds

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

A+ (Stable)

Applicable interest rate of 8-year borrowings (¥5.4 billion): 0.96475% (spread: 0.50%)
Applicable interest rate of 7-year borrowings (¥4.4 billion): 0.83600% (spread: 0.45%)

Average borrowing costs decreased for 8 consecutive fiscal periods, to be promoted along with extending averageremaining periods of borrowings(%)(year)

3.00

6.0
2.45%

Average borrowing cost rates during the fiscal period (Notes 1 and 2) (left axis)

2.47%

4.5

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

4.2
years

1.97%

2.00

1.61%

1.00
1.0
years

1.5
years

2.0
years

2.0
years

1.56%

2.1
years

1.47%
2.3
years

3.1
years

years

4.3
years

4.5

3.2
years

3.0

1.38%
1.25%

1.20%

1.09%

0.00

1.5

0.0
Fiscal period
Fiscal period
Fiscal period
Fiscal period
Fiscal period
Fiscal period
Fiscal period
Fiscal period
Fiscal period
Fiscal period
as of the date of thisended Mar. 31, 2010 ended Sept. 30, 2010 ended Mar. 31, 2011 ended Sept. 30, 2011 ended Mar. 31, 2012 ended Sept. 30, 2012 ended Mar. 31, 2013 ended Sept. 30, 2013 ended Mar. 31, 2014 ended Sept. 30, 2014
document(9th fiscal period)(10th fiscal period)(11th fiscal period)(12th fiscal period)(13th fiscal period)(14th fiscal period)(15th fiscal period)(16th fiscal period)(17th fiscal period)(18th fiscal period)

Note 1: Average borrowing cost rate during the fiscal period = Period borrowing cost (annualized) ÷ Balance of period average interest-bearing debt; Borrowing cost = Interest expenses on Borrowings + Borrowing related expenses + Interest
expenses on investment corporation bonds.
Note 2: Rounded to the nearest second decimal place.
Note 3: The figures are the result of calculation based on the weighted average using the remaining period from each corresponding da te to the repayment (redemption) dates of Borrowings and investment corporation bonds, and their balancesand rounded down to the nearest first decimal place.

30

Major Financial Indices Related to Interest-Bearing Debt (1)Continued to promote lengthening of borrowing periods while maintaining optimal balance between floating and fixed rates byutilizing interest rate swap agreements, etc.

Ratios of Floating and Fixed Interest Rates (Notes 1 and 2)
Floating
100%

11.2%

6.9%

9.7%

12.1%

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

Fixed

100%
13.1%
80%

60%

60%
88.8%

87.9%

86.9%

20%
0%

6.4%

3.9%
(19.3%)

9.4%(7.2%)

10.4%(7.1%)

90.6%

89.6%

(25.9%)

100%

93.1%

90.3%

of this, long-term borrowings scheduled to be repaid within 1 year)(25.4%)

80%

40%

Long-term (

93.6%

40%

96.1%

20%

End of 15th FP End of 16th FP End of 17th FP End of 18th FP(Mar. 31, 2013) (Sept. 30, 2013) (Mar. 31, 2014) (Sept. 30, 2014)

As of date of
document

0%

End of 15th FP End of 16th FP End of 17th FP End of 18th FP As of date of(Mar. 31, 2013) (Sept. 30, 2013) (Mar. 31, 2014) (Sept. 30, 2014)
document

Diversification Status of Repayment Dates(million yen)

Long-term borrowing

Short-term borrowing

Investment corporation bonds

As of date of document

16,000・・・Refinancing during the fiscal period ended Sep. 30, 2014
・・・New borrowings during the fiscal period ended Sep. 30, 2014
・・・New borrowings on Nov. 4, 2014

14,00012,0008,700

10,000

2,500

8,000

2,000

6,000

9,500

4,000
2,000
0

19th FPEndingMar. 31,
2015

6,792
5,500

1,000
18th FP
Ended
Sep. 30,
2014

8,382

4,000

6,650

20th FPEndingSep. 30,
2015

2,705

2,850
21st FPEndingMar. 31,2016

22nd FPEndingSep. 30,2016

23rd FPEndingMar. 31,2017

24th FPEndingSep. 30,
2017

2,100

2,500

25th FPEndingMar. 31,2018

26th FPEndingSep. 30,2018

27th FPEndingMar. 31,2019

28th FPEndingSep. 30,2019

29th FPEndingMar. 31,2020

30th FPEndingSep. 30,
2020

6,000

31st FPEndingMar. 31,
2021

4,400

32nd FPEndingSep. 30,
2021

6,480

33rd FPEndingMar. 31,
2022

5,400

34th FPEndingSep. 30,2022

35th FPEndingMar. 31,2023

36th FPEndingSep. 30,
2023

3,000

3,000

37th FPEndingMar. 31,2024

38th FPEndingSep. 30,2024

Note 1: The above ratios are rounded to the nearest first decimal place.
Note 2: Ratio against the total interest-bearing debt.

31

Major Financial Indices Related to Interest-Bearing Debt (2)Overview of Interest-Bearing Debt

Long-term loans payable(Note 3)
Investment corporation
bonds
Total interest-bearing debt

Investment corporation bonds

Long-term loans payable

Current portion of long-term loans

Short-term loans payable

100,000

Period-end average
Interest Rate on
Procurement (Note 2)

Balance as ofdate of document¥8,700 million

0.3%¥9,700 million¥69,259 million

1.0%¥69,259 million

Balance at
end of 18th FP
Short-term loans payable(million yen)

80,0000.8%¥14,500 million¥92,459 million

0.9%¥93,459 million

LTV (Note 4)

14,50062,60962,60960,00052,80940,000¥14,500 million

14,50011,50020,00016,159

6,650

3,300

8,700

0

52.3%

Mar. 31, 2014(End of 17th FP)

Loans Payable Outstanding by Financial Institution

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

6,650
9,700

As of date of document

As of date of document
Financial Institution

Outstanding Balance

Share

Mizuho Bank, Ltd.

¥17,726 million

22.5%

Sumitomo Mitsui Banking Corporation¥17,566 million

22.2%

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

¥7,350 million

9.3%

Sumitomo Mitsui Trust Bank, Limited¥5,700 million

7.2%

Mizuho Trust & Banking Co., Ltd.

¥5,230 million

6.6%¥4,642 million

5.9%

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

¥4,141 million

Mizuho Bank, Ltd.

1.3% 1.3%

1.3%

1.3%

1.3%

1.3%

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

5.2%

1.6%

Mizuho Trust & Banking Co., Ltd.

2.3%

Mitsubishi UFJ Trust and Banking Corporation

The Norinchukin Bank

¥3,852 million

4.9%

Resona Bank, Limited.

¥3,650 million

4.6%

Aozora Bank, Ltd.

¥1,800 million

2.3%

Shinkin Central Bank

¥1,300 million

1.6%

The Senshu Ikeda Bank, Ltd.

¥1,000 million

1.3%

The 77 Bank. Ltd.

¥1,000 million

1.3%

The Hiroshima Bank, Ltd.

¥1,000 million

1.3%

The Yamaguchi Bank, Ltd.

¥1,000 million

1.3%

The Shizuoka Bank, Ltd.

¥1,000 million

1.3%

The Bank of Fukuoka, Ltd.

¥1,000 million

1.3%¥78,959 million

100.0%

Total debt

Solid bank formation centering on leading domestic financial
institutions

4.6%

22.5%

4.9%

Development Bank of Japan Inc.
The Norinchukin Bank
Resona Bank, Limited.
Aozora Bank, Ltd.

5.2%

Shinkin Central Bank

5.9%

The Senshu Ikeda Bank, Ltd.

22.2%
6.6%

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

7.2%

9.3%

The Yamaguchi Bank, Ltd.
The Shizuoka Bank, Ltd.
The Bank of Fukuoka, Ltd.

Note 1: Concerning figures in the graphs and tables above, money amounts of less than one million yen are rounded down and percentage figures are rounded to the nearest first decimal place.
Note 2: The Period-end average interest rate on procurement is the weighted average of applied interest rates as of September 30, 2014, and the figures are rounded to the nearest first decimal place.
Note 3: Includes current portion of long-term loans payable.
Note 4: LTV = Period-end total interest-bearing debt / Period-end total assets (Interest-bearing debt = Borrowings+ Investment corporation bonds)

32

Prime Maison ODORI KOEN

Ⅴ. Forecasts for the 19th Fiscal Period Ending
March 31, 2015 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 19th Fiscal Period Ending March 31, 2015
Fiscal Period Ended
Sep.30, 2012(183 days)

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

Fiscal Period Ended
Sep.30, 2013(183 days)

Fiscal Period Ended
Mar. 31, 2014(182 days)

Fiscal Period Ended
Sep.30, 2014
(183 days)

Fiscal Period Ending
Mar.31, 2015
(182 days) (Forecast)

Operating revenue (million yen)

3,567

4,038

4,688

4,952

5,591

6,252

Operating income (million yen)

1,663

1,908

2,179

2,242

2,463

2,771

Ordinary income (million yen)

1,193

1,435

1,684

1,767

1,952

2,249

Net income (million yen)

1,191

1,433

1,681

1,765

1,950

2,247

2,070
(10,351)

2,091(10,459)

2,107(10,537)

2,212(11,062)2,131(10,655)

2,130(10,650)

Cash distribution per unit (yen)<Assumptions of forecast for the 19th fiscal period ending March 31, 2015>◆ Assets under management: Total of 106 properties (105 properties owned as of November 4, 2014 and 1 property scheduled to be acquired on January 15, 2015)◆ Gain on sale of real estate properties: Gain on sale of b-town JINGUMAE II of ¥151 million (of which ¥78 million is planned to be reserved internally as reserves for reduction entry)◆ Administration service fees: Approx. ¥579 million◆ Fixed property taxes, etc. that will be recorded as expenses related to lease business: Approx. ¥287 million◆ Depreciation and amortization: Approx. ¥1,389 million◆ Interest expenses, borrowing related expenses, etc.: Approx. ¥500 million◆ Number of investment units issued and outstanding: 1,018,110 units
Note 1: The Investment Corporation implemented a five-for-one split of its investment units on April 1, 2014. Taking into consideration the impact of the split, cash distribution per unit for the fiscal period ended March 31, 2014 and earlier periods are the fi fthof the actual figures indicated in parenthesis, and the forecast cash distribution per unit for the fiscal period ended September 30, 2014 shows a figure that is five times the forecast figure in parentheses for reference.
Note 2: Money amounts less than the indicated denomination are rounded down.
Note 3: The above figures are calculated based upon certain assumptions as of November 17, 2014. 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 estate markets, 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.

Changes in Operating Revenue, Operating Income and Net Income(million yen)

7,000

Changes in Cash Distribution Per Unit
( yen)

Operating revenue

Operating income

Net income

6,000

2,500
2,000

5,000
4,000

1,500

3,000

1,000

2,000
500

1,000
0

0
Fiscal Period
Ended Sept. 30,
2012

Fiscal Period
Ended Mar. 31,
2013

Fiscal Period
Ended Sept. 30,
2013

Fiscal Period
Ended Mar. 31,
2014

Fiscal Period
Ended Sept. 30,
2014

Fiscal PeriodEnding Mar. 31,
2015(Forecast)Fiscal Period
Ended Sept. 30,
2012

Fiscal Period
Ended Mar. 31,
2013

Fiscal Period
Ended Sept. 30,
2013

Fiscal Period
Ended Mar. 31,
2014

Fiscal Period
Ended Sept. 30,
2014

Fiscal PeriodEnding Mar. 31,
2015(Forecast)

34

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

External Growth Strategy
 Ongoing enhancement ofresidential portfolio•

Utilization of sponsor’s pipeline•

Utilization and construction of warehousing
function backed by sponsor’s creditworthiness•

Enhancement of activities for obtaining
property information from the AssetManagement Company’s proprietary route

Closely watching overheating trends of thereal estate transaction market andmaintaining appropriate view on
acquisition yield levels

 Replacement of assets undermanagement•

Continue to consider the replacement ofassets under management through the sale ofretail properties(considering to make distribution in excess ofearnings as well when loss on sale arises)
Reinforcement of profit base throughexpansion of the portfolio size

Management Policy

Strategic Target

Increasing profitability through fullfledged expansion of asset size

Aiming for an asset size of ¥200
billion while considering the cash
distribution level

Internal Growth Strategy

Financial Strategy

 Increasing of profitability

 Flexibly utilizing leverage•

Effectively utilizing borrowing capacity
according to the demand for funds in property
acquisitions•

Reducing down time•

Promoting contracts with increased rent forleasing•

Promoting contract renewals with higher
rents while keeping the current renewal rate of
tenants

Continue controlling LTV conservatively with thefirst half of the 50% level as a target for LTV
ceiling•

Focusing on upward revision of rents andproactive acquisition of key money for highoccupancy properties Reduction of financing costs•

 Promoting environmental measures•

Reducing costs by installing LED light fixtures•

Improving customer satisfaction by installingenergy-saving air conditioners

 Maintenance and enhancement offinancial soundness•

Increasing of profitability of existing
portfolio

Focusing on the bond market and considering
issuance of investment corporation bonds(of total interest-bearing debt, about 20% areceiling target)

Maintaining the ratio of borrowings with
fixed interest and promoting further
lengthening of borrowing periods
Further reinforcement of the stabilityof financial base

Steady implementation of each strategy, with around one and a half years set as the period required to achieve thestrategic target of Phase II of the Investment Corporation’s growth strategy
35

Residential Properties Planned,
Developed or Owned by Sekisui House or Sekiwa Real Estate Companies
After change of sponsor, all 10 “Prime Maison” properties begun by Sekisui House and either completed, underconstruction or in planning, are in Greater Tokyo / Major Urban Areas (of these, 9 properties are in Tokyo’s 23 wards)
Completed properties

Under construction (confirmed)

Properties in theplanning stage

2 properties 207 units total

3 properties 370 units total

5 properties

Sekisui House

ExchangeofOpinion

Demandinformation

Supplyinformation

Development Department

All in Tokyo’s
23 wards
Sekisui House SI
Asset Management

Prime Maison
YOKOHAMA NIHONODORI(Yokohama-shi, Kanagawa)
137 units total<Completed in June 2014>

Real Estate Investment Department

Prime Maison(Tentative name)SHIBUYA(Shibuya-ku, Tokyo)
70 units total<Completed in July 2014>

Prime Maison
SHIROGANE TAKANAWA(Minato-ku, Tokyo)
147 units total

Acquisition results
through above initiatives
Total acquisition price(scheduled)¥11,065 million(6 properties)

Prime Maison
WASEDA

Prime Maison
HATCHOBORI

Prime Maison
JIMBOCHO

Prime Maison
MORISHITA

Prime Maison
SHINAGAWA

Prime Maison
EBISU(Shinjuku-ku, Tokyo)
60 units total<Acquired Oct. 1, 2013>(Chuo-ku, Tokyo)
45 units total<Acquired Oct. 1, 2013>(Chiyoda-ku, Tokyo)
63 units total<Acquired Oct. 1, 2013>(Koto-ku, Tokyo)
86 units total<Acquired Nov. 4, 2014>(Shinagawa-ku, Tokyo)
50 units total<Acquired Nov. 4, 2014>(Shibuya-ku, Tokyo)
100 units total<Planned to be acquired Jan 15, 2015>

MAST properties
planned, developed
and owned by Sekiwa
Real Estatecompanies(partial)“Prime Maison”
properties owned by Sekisui
House other than the above(partial)

Prime Maison GOTENYAMA WEST
(Shinagawa-ku, Tokyo)

MAST LIFE
HINO

GRANMAST
KANAZAWA NISHIIZUMI(Hino-shi, Tokyo)
73 units total
Sekiwa Real Estate(Kanazawa-shi, Ishikawa)
60 units total
Sekiwa Real Estate Chubu

Note: With the exception of the properties in “Acquisition results through above initiatives,” the Investment Corporation has no specific plans to acquire any of the properties above as of the date of this document. Also, images of properties that are “underconstruction” are renderings based on the design documents and may differ from the actual buildings. Furthermore, “total units” includes units that are not for residential purpose.

36Prime Maison EBISU

Ⅵ. Appendix

プライムメゾン東桜
マスト博多
マスト博多

Balance Sheets (1)17th fiscal period(As of March 31, 2014)
Million yen

18th fiscal period(As of September 30, 2014)

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
Total current assets
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
Lease and guarantee deposits
Long-term prepaid expenses
Other
Total investments and other assets
Total noncurrent assets

3,442
4,174
159
116
0
13
0
-0
7,905

5.0

3,595
4,769
145
137
0
69
0
-1
8,715

94.4

82,643-10,188
72,454
594
-141
453
1,292
-321
970
102
-44
58
93,263
167,199

0.1

154
1
155

0.4
94.9

235
341
120
697
168,052

70
70

0.1

89
34
124

0.1

19
34
54

156,878

100.0

176,892

100.0

20,014

71,913-9,01362,900
551
-122
428
961
-270
690
86
-38
48
84,024148,092
156
1
157
235
299
115
651
148,901

4.9

153
595
-14
20
0
55
0
-0
809

10.2

94.5

10,729-1,175
9,554
42
-18
24
330
-51
279
16
-6
10
9,238
19,106

12.9

0.1

-2
-0
-2

-1.7

0.4
95.0

41
4
46
19,150

7.2
12.9

76.7
12.8

Deferred assets
Investment corporation bond issuance costs
Investment unit issuance expenses
Total deferred assets

Total Assets

38

Balance Sheets (2)17th fiscal period(As of March 31, 2014)
Million yen

18th fiscal period(As of September 30, 2014)

Percent of total

Million yen

ChangePercent of total

Million yen

Period on period (%)

Liabilities
Current liabilities
Operating accounts payable

305

289

-15

Short-Term loans payable

3,300

8,700

5,400

Current portion of long-term loans payable

16,1596,650-9,509Accounts payable – other

416

446

29

Accrued expenses

69

64

-5

Income taxes payable

2

2

0

Advances received

258

303

45

Other
Total current liabilities

29
20,54112
13.1

16,469-16
9.3-4,072-19.8

Noncurrent liabilities
Investment corporation bonds

11,50014,5003,000

Long-term loans payable

52,80962,6099,800

Tenant leasehold and security deposits in trust

1,967

2,303

Total noncurrent liabilities

66,27742.2

79,41344.9

13,13619.8

86,81855.3

95,882

54.2

9,064

10.4

68,294

43.6

79,05944.7

10,765

15.8

Total Liabilities

336

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

1,765

Total surplus

1,765

1.1

1,950

1.1

185

10.5

Total unitholders’ equity

70,05944.7

81,01045.8

10,95015.6

70,05944.7

81,01045.8

10,95015.6

156,878

100.0

176,892

100.0

20,014

12.8

Total Net Assets

Total Liabilities and Net Assets

1,950

185

39

Statements of Income
17th fiscal period
from October 1, 2013 to March 31, 2014
Million yen

Percent of total

18th fiscal period
from April 1, 2014 to September 30, 2014
Million yen

Percent of total

ChangeMillion yen

Period on period (%)

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

4,917

5,591

35

-

4,952

100.0

5,591

673
-35
100.0

638

12.9

Operating expenses
Expenses related to rent business

2,233

2,560

326

Asset management fee

326

360

34

Asset custody fee

13

13

0

Administrative service fees

30

31

0

Directors’ compensations

3

3

-

Provision of allowance for doubtful accounts

0

1

0

Other operating expenses

102

Total operating expenses

2,710

54.7

3,127

55.9

417

15.4

2,242

45.3

2,463

44.1

221

9.9

Operating income

156

54

Non-operating income
Interest income

00Reversal of distributions payable

0

0

0

Interest on refunds

0

0

-0

Compensation received

5

-

-5

Other

0

0

Total non-operating income

6

0.1

1

0

0
0.0

-5

-82.4

Non-operating expenses
Interest expenses

389

390

0

Interest expenses on investment corporation bonds

25

45

20

Amortization of investment corporation bond issuance costs

3

6

2

Borrowing related expenses

61

62

1

Amortization of investment unit issuance expenses

-

6

6

Other

0

0

Total non-operating expenses

0

481

9.7

512

9.2

30

6.4

Ordinary Income

1,767

35.7

1,952

34.9

185

10.5

Income before Income Taxes

1,767

35.7

1,952

34.9

185

10.5

Income taxes - current

2

2

0

4.5

Income taxes - deferred

0

-0

-0

-224.5

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

2

0.1

2

0.0

0

3.1

1,765

35.6

1,950

34.9

185

10.5

-0

-39.4

35.6

1,950

34.9

185

10.5

0
1,765

0

40

Statements of Cash Flows / Cash Distributions
Statements of Cash Flows
17th fiscal period
from October 1, 2013
to March 31, 2014

18th fiscal period
from April 1, 2014 toSeptember 30, 2014

Million yen

Million yen

Net cash provided by (used in) operating activities

17th fiscal period
from October 1, 2013
to March 31, 2014

18th fiscal period
from April 1, 2014 toSeptember 30, 2014

Million yen

Million yen

Net cash provided by (used in) investment activities

Income before income taxes

1,767

1,952

Depreciation and amortization

1,074

1,253

Amortization of investment corporation bond issuance
costs

3

6

Amortization of investment unit issuance expenses-

6

Increase (decrease) in allowance for doubtful accounts-00Proceeds from tenant leasehold and security
deposits in trust received
Repayments of tenant leasehold and security
deposits in trust received
Decrease (increase) in investments and otherassetsNet cash provided by (used in) investment activities

Interest income-0-0Interest expenses

415

436

Decrease (increase) in operating accounts receivable

-75

14

Decrease (increase) in prepaid expenses

16

-17

Purchase of property, plant and equipment in trust-11,270-20,382

182

505

-118

-169

-5

-4

-11,211-20,051

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

3,300

8,700

-4,900-3,300Decrease (increase) in consumption tax receivable

24

-55

Repayments of short-term loans payable

Increase (decrease) in operating accounts payable

21-9Proceeds from long-term loans payable

14,0309,800

Increase (decrease) in accounts payable – other28

46

Repayments of long-term loans payable-10,137-9,509

Increase (decrease) in advances received

-74

45

Decrease from sale of property, plant and equipmentin trust

2,976-

Proceeds from the issue of investment corporation
bonds

5,458

541

Decrease (increase) in long-term prepaid expenses

-77

-44

-

10,724

Dividends paid

-1,680-1,765

Net cash provided by (used in) financing activities

6,071

17,626

Net increase (decrease) in cash and cash equivalents-1,869748

Cash and cash equivalents at beginning of period

9,486

7,616

Cash and cash equivalents at end of period

7,616

8,365

Proceeds from the issue of investment units

Other
SubtotalInterest income received
Interest expenses paid

33

-17

3,697

3,617

0

0

-426

-442

-1

-2

3,270

3,173

17th fiscal period
from October 1, 2013
to March 31, 2014

18th fiscal period
from April 1, 2014 toSeptember 30, 2014

Income taxes paid
Net cash provided by (used in) operating activities

Cash Distributions

Yen

Yen

I Unappropriated retained earnings

1,765,604,403

1,950,792,909

II Cash distributions(Cash distributions per unit)

1,765,550,510（11,062）

1,950,376,440（2,131）53,893

416,469

III Retained earnings brought forward

41

Summary of Selected Financial Data
17th fiscal period
from October 1, 2013 toMarch 31, 2014
Business days

18th fiscal period
from April 1, 2014 toSeptember 30, 2014

182 days

183 days

Total assets

156,878 million yen

176,892 million yen

Net assets

70,059 million yen

81,010 million yen

Unitholders’ capital

68,294 million yen

79,059 million yen

798,025 units（159,605 units）
87,791 yen（438,957 yen）

915,240 units（183,048 units）
88,512 yen（442,560 yen）

1,765 million yen

1,950 million yen

2,212 yen
（11,062 yen）

2,131 yen
（10,655 yen）

Ordinary income to total assets(annualized) (Note 2)

2.3%

2.3%

Return on unitholders’ equity(annualized) (Note 3)

5.1%

5.2%

Unitholders’ equity ratio (Note 4)

44.7%

45.8%

95

99

318,602.26 m2

357,494.91 m2

97.5%

97.1%

1,073 million yen

1,252 million yen

86 million yen

68 million yen

Leasing Net Operating Income(NOI) (Note 5)

3,757 million yen

4,283 million yen

Funds from Operation (FFO) (Note 6)

2,804 million yen

3,204 million yen

3,514 yen
（17,571 yen）

3,500 yen
（17,500 yen）

Total interest-bearing debt

83,768 million yen

92,459 million yen

Loan to Value (LTV) (Note 7)

53.4%

52.3%

Note 8: Interest-bearing debt ratio = Period-end interest-bearing debt / (Period-end interest-bearing debt +Unitholders’ capital)

Interest-bearing debt ratio (Note 8)

55.1%

53.9%

Note 9: DSCR = (Net income + Repayment of interest-bearing debt + Interest expenses + Depreciation andamortization) / (Repayment of interest-bearing debt + Interest expenses)

7.8 times

8.3 times

Investment units issued (Note 1)
Net assets per unit (Note 1)
Total cash distributions
Cash distributions per unit (Note 1)

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

Capital expenditures

FFO per unit (Note 1)

Debt Service Coverage Ratio(DSCR) (Note 9)

Note 1: As the Investment Corporation executed a five-for-one split of investment units on April 1, 2014, “number ofinvestment units issued and outstanding” for the 17th fiscal period (ended March 2014) is indicated as theamount arrived at by multiplying the actual amount in parentheses by five and “net assets per unit” and“cash distributions per unit” and “FFO per unit” for the 17th fiscal period (ended March 2014) are indicatedas the amounts arrived at by dividing the actual amount of each period in parentheses by five, taking into
consideration the impact of this split of investment units. Amounts are rounded down to the nearest yen.
Also, regarding “number of investment units issued and outstanding,” “net assets per unit,” “cashdistributions per unit” and “FFO per unit” for the 18th fiscal period (ended September 2014), amounts arrived
at by either multiplying or dividing the actual amounts by 5 are shown in parentheses for the purpose ofcomparison with the 17th fiscal period (ended March 2014).
Note 2: Ordinary income to total assets = Ordinary income (annualized) / Average total assets
Average total assets = (Period-beginning total assets + Period-end total assets) / 2
Note 3: Return on unitholders’ equity = Net income (annualized) / Average net assets
Average net assets = (Period-beginning net assets + Period-end net assets) / 2
Note 4: Unitholders’ equity ratio = Period-end net assets / Period-end total assets
Note 5: Leasing NOI = Leasing operating income (= Rent revenue-real estate – Expenses related to rent business)+ Depreciation expense (Expenses related to rent business)
Note 6: FFO = Net income – Gain on sales of real estate properties + Loss on sales of real estate properties +Depreciation and amortization
Note 7: LTV = Period-end interest-bearing debt / Period-end total assets
Interest-bearing debt = Borrowings + Investment corporation bonds + Interest-bearing tenant leasehold andsecurity deposits* Ratios are rounded to the nearest first decimal place.

42

History of the Investment Corporation since ListingManagement before change of sponsor

Management after change of sponsor

Total acquisition
Price (million yen)

190,000

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

180,000

99
properties
171,099

170,000
160,000
150,000
140,000
July 28, 2005
Listed on the Tokyo
Stock Exchange

130,000
120,000
110,000
100,000

38
properties
82,21790,00080,00070,00021
properties
47,51660,00050,00040,000Aug. 29, 2005
Third-party
allotment
2,000 units

30,00042properties
81,47353
properties
99,919(Note 1)53
properties
99,92010,000Oct. 18, 2006
Public offering
28,500 units

Oct. 24, 2007
Public offering
17,500 units

Nov. 16, 2006
Third-party
allotment
1,500 units

Nov. 21, 2007
Third-party
allotment
1,170 units～～-10,000

Sale of 1
property
End of 1st FP(Mar. 31, 2006)

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

60
properties
101,006

66
properties
110,21495
properties
151,744(Note 1)

Trade namechangeApr. 1, 2014
Split ofInvestment Units

Mar. 13, 2007
Investment
corporationbonds¥10,000 million

20,0000

48
properties
91,81852
properties
99,04853
properties
99,92077
properties
128,79489
properties
141,472

106
properties
186,041

Oct. 1,
2012
Public offering
20,460 units

Apr. 22,2013
Public Offering
21,430 units

Apr. 21, 2014
Public Offering
111,600 units

Oct. 22, 2014
Public Offering
97,970 units

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

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

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

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

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

Trade namechangeFeb. 28, 2013
Investment
corporation
bonds¥6,000 million

Sale of 1
property
Partial sale of
HAMAMATSU Plaza, etc.

End of 3rd FP
End of 4th FP
End of 5th FP
End of 6th FP
End of 7th FP
End of 8th FP(Mar. 31, 2007) (Sept. 30, 2007) (Mar. 31, 2008) (Sept. 30, 2008) (Mar. 31, 2009) (Sept. 30, 2009)

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

Aug. 29, 2014
Investment
corporationbonds¥3,000 millionof 1
Sale of HAMAMATSU Sale
property
Plaza East,
Ito-Yokado Building

End of 9th FP End of 10th FP End of 11th FP End of 12th FP End of 13th FP End of 14th FP End of 15th FP End of 16th FP(Mar. 31, 2010) (Sept. 30, 2010) (Mar. 31, 2011) (Sept. 30, 2011) (Mar. 31, 2012) (Sept. 30, 2012) (Mar. 31, 2013) (Sept. 30, 2013)

Sale of 1
property

End of 17th FP End of 18th FP
19th FP(Mar. 31, 2014) (Sept. 30, 2014) After public offering(expected)
Unitholders’ capital¥28,491
million¥42,297
million¥48,704
million¥50,523
million¥57,755
million¥68,294
million¥79,059
million¥88,925
millionNumber ofinvestment units

56,000units

86,000units

104,670
units

115,070
units

137,070
units

159,605
units

915,240
units

1,018,110
units

Total interest-bearing
debt(Note 2)

¥23,165
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¥75,975
million¥83,768
million¥92,459
million-LTV(Note 3)

41.7%

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%

51.0%

53.4%

52.3%

-

Cash distribution
per unit(Note 4)

¥17,277（¥12,730）¥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¥10,537¥11,062¥2,131-

Note 1:

With regard to Bell Plaza Shopping Center acquired in the fiscal period ended March 31, 2008, the former land for 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.

Note 2:

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

Note 3:

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

Note 4:The operating period for the first fiscal period was the 346 days between April 20, 2005 and March 31, 2006. The substantial management period was the 247 days between July 28, 2005 and March 31, 2006. In order to compare with the successive fiscal periods, the figure calculated with thenumber of management days as 182 is indicated in parentheses. Also, a split of investment units was executed on April 1, 2014.

43

Portfolio Map (1)As of date of document

Residence (property number)
Retail Properties (property number)

Osaka City
Greater Tokyo / Major Urban Areas
Itabashi-ku

Adachi-ku
Kita-ku
Katsushika-ku

Nerima-ku
Arakawa-ku
Toshima-ku

Musashino
City

Fukuoka City

Koganei
Mitaka City
City

Nakano-ku
Suginami-ku

Taito-ku

Bunkyo-ku
Shinjuku-ku

Sumida-ku
Edogawa-ku

Chiyoda-ku
Shibuya-ku

Chuo-ku

Setagaya-ku

Koto-ku

Minato-ku

Meguro-ku
Shinagawa-ku
Kawasaki City
Ota-kuYokohama City

Greater Tokyo / Other Urban Areas
Nagoya CityTokyo

Portfolio Earthquake PML

2.7%（Entire portfolio）

Note: “Portfolio Earthquake PML” is as of the survey in November
2014 on assets owned at the end of the fiscal period ended
September 30, 2014 (18th fiscal period) and does not include
RINKU HAGURAZAKI Plaza because the Investment
Corporation owns only the land. Since the evaluator (Sompo
Japan Nipponkoa Risk Management Inc.) changed its methodof evaluation of earthquake risk analysis in October 2014, PML
after the method change is indicated on the left. The portfolio
earthquake PML as of the survey in September 2014 prior tothe method change on assets owned at the end of the fiscal
period ended September 30, 2014 (18th fiscal period) was
4.7%.

Kanagawa

44

Portfolio Map (2)Greater Tokyo / Major Urban Areas

Greater Tokyo / Other Urban Areas

Major Cities Nationwide

Residence

Residence

Residence-1

Esty Maison GINZA

Residence-69 Esty Maison SENGOKU

Residence-11 Esty Maison MACHIDA

Residence-13 Esty Maison IMAIKE

Residence-3

Esty Maison AZABUNAGASAKA

Residence-70 Esty Maison DAIZAWA

Residence-18 Esty Maison YACHIYOMIDORIGAOKA

Residence-20 Esty Maison KYOBASHI

Residence-4

Esty Maison EBISU II

Residence-71 Esty Maison TOGOSHI

Residence-40 Esty Maison HACHIOJIMINAMINO

Residence-23 Esty Maison MINAMIHORIE

Residence-5

Esty Maison EBISU

Residence-74 Esty Maison SHIROKANEDAI

Residence-50 Prime Maison MUSASHINONOMORI

Residence-28 Esty Maison JYOUTOU

Residence-6

Esty Maison KANDA

Residence-75 Esty Maison HIGASHISHINJUKUResidence-8

Esty Maison KITASHINJUKUResidence-76 Esty Maison MOTOAZABURetail-5

KOJIMA NEW KAMIFUKUOKATENResidence-35 Esty Maison TENJINHIGASHI I

Residence-10 Esty Maison ASAKUSAKOMAGATA

Residence-77 Esty Maison TORITSUDAIGAKU

Retail-8

Joy Square YUGAWARA

Residence-36 Esty Maison TENJINHIGASHI II

Residence-12 Esty Maison KAWASAKI

Residence-78 Esty Maison MUSASHIKOYAMA II

Residence-37 Esty Maison SHIJONISHINOTOIN

Residence-14 Esty Maison SHINKAWASAKI

Residence-79 Esty Maison NAKANO

Residence-41 Esty Maison NISHINAKAJIMA

Residence-15 Esty Maison YOKOHAMA

Residence-80 Esty Maison SHINNAKANO

Residence-46 Esty Maison HAKATAHIGASHI

Residence-16 Esty Maison KAMEIDO

Residence-81 Esty Maison NAKANOFUJIMICHO

Residence-47 Esty Maison KAMIGOFUKUResidence-17 Esty Maison MEGURO

Residence-82 Esty Maison TETSUGAKUDO

Residence-51 Prime Maison HIGASHISAKURA

Residence-19 Esty Maison SUGAMO

Residence-83 Esty Maison KOENJI

Residence-21 Esty Maison MEGUROHONCHO

Residence-84 Esty Maison OSHIAGE

Residence-22 Esty Maison HAKURAKU

Residence-85 Esty Maison AKABANE

Residence

Other Real Estate in Trust (Retail Properties)

Properties acquired as of Nov. 4, 2014

ResidencePrime Maison MORISHITA
Prime Maison SHINAGAWA

Residence

Residence-29 Esty Maison TSUKAMOTO

Residence-52 Prime Maison KAYABAKOEN
Residence-55 MAST HAKATA
Residence-58 Prime Maison GOKISO

Residence-24 Esty Maison GOTANDA

Residence-86 Esty Maison OJI

Residence-98

Residence-25 Esty Maison OISENDAIZAKA

Residence-87 Prime Maison WASEDA

Residence-99

Residence-26 Esty Maison SHINAGAWA SEASIDE

Residence-88 Prime Maison HATCHOBORIResidence-100 Prime Maison ODORI KOEN

Residence-27 Esty Maison MINAMIAZABUResidence-89 Prime Maison JIMBOCHO

Residence-101 Prime Maison MINAMI 2-JO

Residence-65 Prime Maison TAKAMI

Residence-30 Esty Maison KAWASAKI II

Residence-90 Prime Maison GOTENYAMA EAST

Residence-102 Prime Maison KAMOKAMOGAWA

Residence-66 Prime Maison YADAMINAMI

Residence-31 Esty Maison AZABUJUBAN

Residence-91 MAST LIFE AKIHABARA

Residence-103 Prime Maison CENTRAL PARK

Residence-67 Prime Maison TERIHA

Residence-33 Esty Maison ITABASHIHONCHO

Residence-94 Esty Maison KINSHICHO II

Residence-104 MAST LIFE YAHIRO

Residence-68 Esty Maison HIGASHISHIRAKABE

Residence-34 Esty Maison OIZUMIGAKUEN

Residence-95 Esty Maison OJIMA

Residence-39 Esty Maison HIGASHISHINAGAWA

Other Real Estate in Trust (Retail Properties)

Residence-42 Esty Maison ITABASHIKUYAKUSHOMAE

Retail-4

b-town MINAMIAOYAMA

Residence-43 Esty Maison MUSASHIKOYAMA

Retail-7

b-toss IKEBUKURO

Properties Scheduled for Acquisition
as of Jan. 15, 2015

Residence
Residence-105 Prime Maison EBISU

Residence-59 Prime Maison YUHIGAOKA
Residence-60 Prime Maison KITATANABE
Residence-61 Prime Maison MOMOCHIHAMAResidence-72 Esty Maison KAWARAMACHI
Residence-73 Esty Maison NISHITENMA
Residence-92 Esty Maison AOIResidence-93 Esty Maison YAKUIN

Residence-44 Esty Maison SENDAGIResidence-96 Prime Maison FUJIMIDAI

Residence-45 Esty Maison YOTSUYASAKAMACHI

Residence-97 Esty Maison TSURUMAI

Residence-48 Esty Maison SANGENJAYAOther Real Estate in Trust (Retail Properties)

Residence-53 Esty Maison SANGENJAYA II

Retail-1

HAMAMATSU Plaza

Residence-54 Esty Maison ITABASHI C6Retail-3

RINKU HAGURAZAKI Plaza

Residence-56 Esty Maison KINSHICHO

Retail-9

Bell Plaza Shopping Center

Residence-57 Esty Maison MUSASHIKOGANEIResidence-62 Esty Maison AKIHABARA
Residence-63 Esty Maison SASAZUKA
Residence-64 Prime Maison GINZA EAST

45

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

Esty Maison
OISENDAIZAKAGreater Tokyo / Other Urban Areas
Esty Maison
MACHIDA

Prime Maison
GINZA EAST

Prime Maison
WASEDA

Prime Maison
SHINAGAWA

Major Cities Nationwide
Prime Maison
MUSASHINONOMORI

Prime Maison
HIGASHISAKURAMASTHAKATA46

Status of Portfolio ~ Other Real Estate in Trust (Retail Properties ) ~Remaining Contract Period

Properties Owned
Greater Tokyo
Other Urban Areas

Greater Tokyo / Major Urban Areas

10 years or more

Less than 3 years

32.2%

5 years toless than 10 years

b-townMINAMIAOYAMA

b-tossIKEBUKURO

KOJIMA NEW
KAMIFUKUOKATEN

44.0%
Weighted average ofremaining Period (Note)
6.7 years

Joy Square
YUGAWARA

23.8%

As of end of fiscal period ended
September 30, 2014 (18th fiscal period)

Major Cities Nationwide
HAMAMATSU PlazaRINKU HAGURAZAKI Plaza

Bell Plaza Shopping Center

Note: The weighted average of remaining period is based on tenant lease agreements effective as of the end of the fiscal period ended September 30, 2014 (18th fiscal period) and calculated by seeking the weighted average with the highest
shop rent during the lease period, and are rounded down to the nearest first decimal place.

47

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

Property Name

Location

Site Area(m2)

Residence- 1

Esty Maison GINZA

Residence- 3

Esty Maison AZABUNAGASAKA

Roppongi, Minato-ku, Tokyo

677.45Residence- 4

Esty Maison EBISU II

Higashi, Shibuya-ku, Tokyo

Residence- 5

Esty Maison EBISU

Hiroo, Shibuya-ku, Tokyo

Residence- 6

Esty Maison KANDA

Kandata-cho, Chiyoda-ku, Tokyo

307.69Ginza, Chuo-ku, Tokyo

Total Floor
Area
(m2)

Price
(Million yen)Appraisal
Value at
End ofPeriod(Million yen)

Ratio
(%)

Occupancy Rate (%)

As of Mar.
31, 2014

As of Sept.
30, 2014

Completion Date

5,290

3.1

5,810

97.0

96.0 February 7, 2005

2,317.87

1,730

1.0

1,590

98.7

90.6 January 16, 2004

561.582,452.69

1,960

1.1

1,820

91.3

87.2 June 13, 2003

169.00871.90

700

0.4

774

96.8

92.8 October 20, 2004

2,028.19

1,360

0.8

1,380

97.4

96.1 February 20, 2004

636.36

7,836.57

Residence- 8

Esty Maison KITASHINJUKU

Kita-shinjuku, Shinjuku-ku, Tokyo

504.412,204.07

1,290

0.8

1,430

88.3

98.7 August 6, 2004

Residence-10

Esty Maison ASAKUSAKOMAGATA

Komagata, Taito-ku, Tokyo

663.54

3,406.10

1,870

1.1

1,950

98.6

97.7 July 28, 2004

Residence-11

Esty Maison MACHIDA

Hara-machida, Machida-shi, Tokyo

587.484,033.59

1,360

0.8

1,450

96.3

95.5 February 23, 2004

Residence-12

Esty Maison KAWASAKI

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

683.694,656.10

2,130

1.2

2,280

98.7

96.8 July 15, 2004

Residence-13

Esty Maison IMAIKE

Imaike, Chikusa-ku, Nagoya-shi, Aichi

360.54

1,375.76

300

0.2

195

91.9

98.3 October 15, 1991

Residence-14

Esty Maison SHINKAWASAKI

Furuichiba, Saiwai-ku, Kawasaki-shi, Kanagawa

1,992.09

3,737.47

1,018

0.6

1,150

100.0

100.0 March 5, 1999

Residence-15

Esty Maison YOKOHAMA

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

611.41

3,076.45

2,090

1.2

2,010

100.0

95.8 January 23, 2007

Residence-16

Esty Maison KAMEIDO

Kameido, Koto-ku, Tokyo

438.432,899.67

1,650

1.0

1,410

100.0

96.0 November 30, 2005

Residence-17

Esty Maison MEGURO

Mita, Meguro-ku, Tokyo

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

Midorigaoka, Yachiyo-shi, Chiba

Residence-19

Esty Maison SUGAMO

Residence-20
Residence-21

578.01

1,283.92

887

0.5

987

100.0

97.5 November 28, 2005

1,289.14

5,420.53

1,348

0.8

1,120

93.6

95.3 January 10, 1998

Sugamo, Toshima-ku, Tokyo

965.702,785.83

1,510

0.9

1,510

97.2

97.3 February 22, 2007

Esty Maison KYOBASHI

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

799.685,995.82

2,774

1.6

2,700

95.4

99.4 March 2, 2006

Esty Maison MEGUROHONCHO

Megurohoncho, Meguro-ku, Tokyo

865.22

1,975.84

1,220

0.7

998

96.4

100.0 February 22, 2006

Residence-22

Esty Maison HAKURAKU

Rokkakubashi, Kanagawa-ku, Yokohama-shi, Kanagawa

457.54

1,593.68

844

0.5

829

94.7

96.5 February 2, 2006

Residence-23

Esty Maison MINAMIHORIE

Minamihorie, Nishi-ku, Osaka-shi, Osaka

475.06

1,994.14

1,055

0.6

1,020

98.6

97.2 February 19, 2007

Residence-24

Esty Maison GOTANDA (Note 5)

Nishi-gotanda, Shinagawa-ku, Tokyo

593.325,590.34

3,043

1.8

2,780

96.0

94.6 March 2, 2006

Residence-25

Esty Maison OISENDAIZAKA

Higashi-oi, Shinagawa-ku, Tokyo

558.393,440.73

2,440

1.4

2,450

97.4

96.1 August 10, 2006

Residence-26

Esty Maison SHINAGAWA SEASIDE

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,049.00

3,127.48

2,200

1.3

1,940

97.2

96.7 June 23, 2006

Residence-27

Esty Maison MINAMIAZABUMinamiazabu, Minato-ku, Tokyo

487.27

1,479.61

1,300

0.8

1,130

98.1

96.2 August 23, 2006

Residence-28

Esty Maison JYOUTOU

Noe, Jyoutou-ku, Osaka-shi, Osaka

740.492,232.26

1,075

0.6

940

98.5

90.7 August 31, 2006

Residence-29

Esty Maison TSUKAMOTO

Tsukamoto, Yodogawa-ku, Osaka-shi, Osaka

808.542,565.66

1,250

0.7

1,060

100.0

96.9 August 10, 2006

Residence-30

Esty Maison KAWASAKI II

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

601.383,193.14

1,900

1.1

2,010

99.2

96.0 February 27, 2007

Residence-31

Esty Maison AZABUJUBAN

Azabujuban, Minato-ku, Tokyo

380.26

2,097.45

2,700

1.6

2,490

98.7

96.8 February 22, 2007

Residence-33

Esty Maison ITABASHIHONCHO

Yamato-cho, Itabashi-ku, Tokyo

220.85

1,446.78

1,000

0.6

905

96.9

93.8 February 27, 2007

Residence-34

Esty Maison OIZUMIGAKUEN

Higashi-Oizumi, Nerima-ku, Tokyo

618.001,542.16

871

0.5

811

95.9

94.6 February 22, 2007

Residence-35

Esty Maison TENJINHIGASHI I

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

239.18

1,158.70

445

0.3

376

100.0

97.8 January 31, 200748

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

Site Area(m2)

Total Floor
Area
(m2)

Appraisal
Value at
End ofPeriod(Million yen)

Property No.

Property Name

Residence-36

Esty Maison TENJINHIGASHI II

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

514.892,108.69840

0.5

Residence-37

Esty Maison SHIJONISHINOTOIN

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

400.593,374.74

1,420

Residence-39

Esty Maison HIGASHISHINAGAWA

Higashi-Shinagawa, Shinagawa-ku, Tokyo

1,028.92

3,338.12

Residence-40

Esty Maison HACHIOJIMINAMINO

Nishikatakura, Hachioji-shi, Tokyo

1,134.50

2,243.06

Residence-41

Esty Maison NISHINAKAJIMA

Higashinakajima, Higashiyodogawa-ku, Osaka-shi,
Osaka

969.02

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

Itabashi, Itabashi-ku, Tokyo

Residence-43

Esty Maison MUSASHIKOYAMA (Note 5)

Residence-44

Esty Maison SENDAGI (Note 5)

Residence-45

Price(Million yen)

Ratio
(%)

Occupancy Rate (%)
Completion Date

As of Mar.
31, 2014

As of Sept.
30, 2014

698

100.0

96.3

May 23, 2007

0.8

1,070

97.6

100.0

April 8, 2008

2,610

1.5

2,320

96.4

96.1

May 23, 2008

1,000

0.6

958

91.9

94.2

March 6, 2007

3,947.24

2,250

1.3

1,920

96.1

92.9

April 18, 2007

731.71

4,322.19

2,700

1.6

2,450

100.0

91.9

April 22, 2007

Ebara, Shinagawa-ku, Tokyo

512.62

1,616.87

1,012

0.6

1,010

94.8

100.0

November 5, 2007

Sendagi, Bunkyo-ku, Tokyo

250.44

1,239.10

757

0.4

680

100.0

97.6

January 9, 2008

Esty Maison YOTSUYASAKAMACHI (Note 5)

Sakamachi, Shinjuku-ku, Tokyo

905.083,675.01

2,300

1.3

1,930

92.8

85.1

March 29, 2008

Residence-46

Esty Maison HAKATAHIGASHI

Yoshizuka, Hakata-ku, Fukuoka-shi, Fukuoka

4,590.91

9,465.09

2,250

1.3

2,350

97.9

98.4

November 21, 2007

Residence-47

Esty Maison KAMIGOFUKUKamigofukumachi, Hakata-ku, Fukuoka-shi, Fukuoka

593.552,523.71

900

0.5

828

89.7

97.0

March 14, 2008

Residence-48

Esty Maison SANGENJAYASangenjaya, Setagaya-ku, Tokyo

153.83954.94

871

0.5

820

88.8

97.3

January 22, 2008

Residence-50

Prime Maison MUSASHINONOMORI

Josuihoncho, Kodaira-shi, Tokyo

5,116.62

4,412.42

1,560

0.9

1,780

98.7

93.2

December 19, 2007

Residence-51

Prime Maison HIGASHISAKURA

Higashisakura, Higashi-ku, Nagoya-shi, Aichi

846.053,517.62

1,140

0.7

1,340

93.6

95.0

February 15, 2008

Residence-52

Prime Maison KAYABAKOEN

Kayaba, Chikusa-ku, Nagoya-shi, Aichi

1,129.02

2,301.42

640

0.4

734

100.0

100.0

November 7, 2006

Residence-53

Esty Maison SANGENJAYA II

Shimouma, Setagaya-ku, Tokyo

473.85

1,006.89

714

0.4

807

97.0

91.1

January 28, 2008

Residence-54

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

773.485,249.34

2,260

1.3

2,340

93.3

94.5

March 12, 2008

Residence-55

MAST HAKATA (Note 6)

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

2,457.01

11,621.67

1,920

1.1

2,280

100.0

100.0

January 15, 2005

Residence-56

Esty Maison KINSHICHO

Kinshi, Sumida-ku, Tokyo

338.57

1,718.10

1,050

0.6

1,180

97.3

95.8

September 6, 2006

Residence-57

Esty Maison MUSASHIKOGANEI

Honcho, Koganei-shi, Tokyo

520.252,676.36

1,450

0.8

1,610

93.2

90.2

February 2, 2005

Residence-58

Prime Maison GOKISO

Ayuchitori, Showa-ku, Nagoya-shi, Aichi

1,429.67

4,691.72

1,640

1.0

1,760

96.9

98.3

October 28, 2008

Residence-59

Prime Maison YUHIGAOKA

Ueshio, Tennoji-ku, Osaka-shi, Osaka

547.152,336.49

810

0.5

851

92.8

87.7

February 16, 2007

Residence-60

Prime Maison KITATANABE

Kitatanabe, Higashisumiyoshi-ku, Osaka-shi, Osaka

640.92

2,112.46

540

0.3

553

100.0

92.0

June 13, 2006

Residence-61

Prime Maison MOMOCHIHAMA

Momochihama, Sawara-ku Fukuoka-shi, Fukuoka

4,069.42

8,945.61

1,810

1.1

1,950

100.0

100.0

February 29, 1996

Residence-62

Esty Maison AKIHABARA

Ueno, Taito-ku, Tokyo

458.322,821.47

1,560

0.9

1,760

97.5

95.0

February 24, 2006

Residence-63

Esty Maison SASAZUKA

Sasazuka, Shibuya-ku, Tokyo

909.33

4,263.10

2,830

1.7

2,980

99.0

95.7

September 7, 2004

Residence-64

Prime Maison GINZA EAST

Tsukiji, Chuo-ku, Tokyo

969.108,724.48

5,205

3.0

5,580

95.0

98.1

February 28, 2006

Residence-65

Prime Maison TAKAMI

Takami, Chikusa-ku, Nagoya-shi, Aichi

1,129.17

2,354.34

905

0.5

955

85.9

100.0

August 27, 2008

Residence-66

Prime Maison YADAMINAMI

Yadaminami, Higashi-ku, Nagoya-shi, Aichi

1,148.53

2,430.23

715

0.4

749

92.3

100.0

July 18, 2007

Residence-67

Prime Maison TERIHA

Kashiiteriha, Higashi-ku, Fukuoka-Shi, Fukuoka

4,130.59

7,953.60

1,110

0.6

1,220

100.0

100.0

August 31, 2005

49

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)Appraisal
Value at
End ofPeriod(Million yen)

Ratio
(%)

Occupancy Rate (%)

As of Mar.
31, 2014

As of Sept.
30, 2014

Completion Date

Residence-68

Esty Maison HIGASHISHIRAKABE

Yoshino, Higashi-ku, Nagoya-shi, Aichi

1,959.76

4,232.39

1,350

0.8

1,440

100.0

100.0

February 27, 2006

Residence-69

Esty Maison SENGOKU

Sengoku, Bunkyo-ku, Tokyo

1,002.14

2,068.21

1,075

0.6

1,190

97.3

94.4

August 6, 2009

Residence-70

Esty Maison DAIZAWA

Daizawa, Setagaya-ku, Tokyo

1,901.36

2,948.98

1,870

1.1

1,970

100.0

97.6

February 18, 2010

Residence-71

Esty Maison TOGOSHI

Togoshi, Shinagawa-ku, Tokyo

679.82

2,545.90

1,370

0.8

1,520

96.9

100.0

June 25, 2009

Residence-72

Esty Maison KAWARAMACHI

Kawaramachi, Chuo-ku, Osaka-shi, Osaka

655.894,580.48

1,640

1.0

1,790

94.3

95.1

October 17, 2006

Residence-73

Esty Maison NISHITENMA

Nishitenma, Kita-ku, Osaka-shi, Osaka

Residence-74

Esty Maison SHIROKANEDAI

Kamiosaki, Shinagawa-ku, Tokyo

Residence-75

Esty Maison HIGASHISHINJUKUResidence-76

Esty Maison MOTOAZABUResidence-77

519.65

4,514.05

1,440

0.8

1,590

93.9

95.0

November 30, 2007

1,279.67

2,797.66

1,900

1.1

2,140

92.4

90.1

September 16, 2003

Shinjuku, Shinjuku-ku, Tokyo

704.82

2,227.87

1,370

0.8

1,490

96.7

94.0

April 17, 2009

Motoazabu, Minato-ku, Tokyo

755.991,699.44

1,170

0.7

1,330

100.0

100.0

November 9, 2009

Esty Maison TORITSUDAIGAKU

Tairamachi, Meguro-ku, Tokyo

766.84

1,399.75

729

0.4

787

100.0

92.8

February 23, 2009

Residence-78

Esty Maison MUSASHIKOYAMA II

Koyama, Shinagawa-ku, Tokyo

609.81

1,436.58

844

0.5

921

97.3

100.0

May 25, 2009

Residence-79

Esty Maison NAKANO

Chuo, Nakano-ku, Tokyo

687.472,608.04

1,540

0.9

1,660

94.8

92.1

June 24, 2009

Residence-80

Esty Maison SHINNAKANO

Honcho, Nakano-ku, Tokyo

747.64

1,508.07

847

0.5

906

95.7

96.2

October 22, 2009

Residence-81

Esty Maison NAKANOFUJIMICHO

Yayoicho, Nakano-ku, Tokyo

907.66

1,531.56

863

0.5

920

97.7

100.0

February 16, 2009

Residence-82

Esty Maison TETSUGAKUDO

Matsugaoka, Nakano-ku, Tokyo

686.93

1,858.00

954

0.6

1,100

100.0

97.6

October 21, 2009

Residence-83

Esty Maison KOENJI

Koenjiminami, Suginami-ku, Tokyo

1,100.15

1,977.24

958

0.6

1,070

95.1

89.1

March 10, 2009

Residence-84

Esty Maison OSHIAGE

Narihira, Sumida-ku, Tokyo

1,134.70

4,344.84

1,950

1.1

2,210

96.9

95.9

April 23, 2010

Residence-85

Esty Maison AKABANE

Akabane, Kita-ku, Tokyo

1,157.02

5,675.18

2,730

1.6

2,940

97.6

97.6

November 25, 2009

Residence-86

Esty Maison OJI

Oji, Kita-ku, Tokyo

518.872,939.76

1,380

0.8

1,480

96.6

94.4

July 6, 2010

Residence-87

Prime Maison WASEDA

Waseda Tsurumaki-cho, Shinjuku-ku, Tokyo

358.54

1,914.93

1,280

0.7

1,390

96.8

98.5

November 8, 2012

Residence-88

Prime Maison HATCHOBORI

Hatchobori, Chuo-ku, Tokyo

302.07

1,901.58

1,160

0.7

1,260

93.8

100.0

November 16, 2012

Residence-89

Prime Maison JIMBOCHO

Kandajinbo-cho, Chiyoda-ku, Tokyo

389.482,341.30

1,640

1.0

1,710

96.4

93.6

March 1, 2013

Residence-90

Prime Maison GOTENYAMA EAST

Kitashinagawa, Shinagawa-ku, Tokyo

2,167.60

3,727.89

2,120

1.2

2,530

95.7

100.0

January 18, 2011

Residence-91

MAST LIFE AKIHABARA

Kanda Sakumagashi, Chiyoda-ku, Tokyo

151.48939.79

480

0.3

507

100.0

100.0

October 3, 2006

Residence-92

Esty Maison AOI

Aoi, Higashi-ku, Nagoya-city, Aichi

906.67

5,107.47

2,160

1.3

2,240

88.7

94.8

October 3, 2007

Residence-93

Esty Maison YAKUIN

Hirao, Chuo-ku, Fukuoka-city, Fukuoka

1,342.00

5,590.13

2,008

1.2

2,180

92.2

94.0

February 2, 2006

Residence-94

Esty Maison KINSHICHO II

Kotobashi, Sumida-ku, Tokyo

1,679.75

11,160.19

6,720

3.9

7,250

-

94.1

January 17, 2008

Residence-95

Esty Maison OJIMA

Ojima, Koto-ku, Tokyo

3,003.87

11,940.22

7,120

4.2

7,990

-

94.9

September 13, 2007

Residence-96

Prime Maison FUJIMIDAI

Fujimidai, Chigusa-ku, Nagoya-city, Aichi

4,882.14

6,173.03

1,755

1.0

1,880

-

92.2

April 24, 2007

Residence-97

Esty Maison TSURUMAI

Chiyoda, Naka-ku, Nagoya-city, Aichi

3,470.05

21,577.20

3,760

2.2

4,090

-

100.0

November 27, 1999

95,223.65

333,034.31

153,56289.8

158,249

96.6

96.3

Residence Subtotal

50

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

Property Name

Appraisal
Value at
End ofPeriod(Million yen)

Location

Site Area(m2)

Total Floor
Area (m2)

73,937.28

11,229.79

3,820

2.2

Price
(Million yen)

Ratio
(%)

Occupancy Rate (%)
Completion Date

As of Mar.
31, 2014

As of Sept.
30, 2014

2,219

100.0

100.0

(Note 7)
May 20, 2005

Retail-1

HAMAMATSU Plaza (Note 7)

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

Retail-2

b-town JINGUMAE II (Note 8)

Jingumae, Shibuya-ku, Tokyo

283.83499.67

1,043

0.6

983

100.0

100.0

Retail-3

RINKU HAGURAZAKI Plaza (Note 9)

Tajiri-cho, Sennan-gun, Osaka, etc.

53,231.66

-

4,697

2.7

5,040

100.0

100.0

－

Retail-4

b-town MINAMIAOYAMAMinamiaoyama, Minato-ku, Tokyo

385.32797.63

1,530

0.9

1,120

100.0

92.3

February 28, 2006

Retail-5

KOJIMA NEW KAMIFUKUOKATEN

Kamifukuoka, Fujimino-shi, Saitama

4,877.90

3,413.40

1,300

0.8

1,330

100.0

100.0

October 14, 1996

Retail-7

b-toss IKEBUKURO

Nishi-Ikebukuro, Toshima-ku, Tokyo

223.381,474.21

1,980

1.2

1,640

88.8

100.0

November 12, 2005

Retail-8

Joy Square YUGAWARA

Chuo, Yugawaramachi, Ashigarashimo-gun, Kanagawa

5,425.13

6,326.53

1,810

1.1

1,530

100.0

100.0

September 22, 2006

23,304.57

6,283.76

1,355(Note 10)

0.8

1,190

100.0

100.0

(Note 10)

Other real estate in trust （retail facilities） Subtotal

161,669.07

30,024.99

17,536

10.2

15,052

99.8

99.9

Portfolio Total

256,892.72

363,059.30

171,099

100.0

173,301

97.5

97.1

Retail-9

Bell Plaza Shopping Center

Nakamaruko, Ueda-shi, Nagano

Owned as of September 30, 2014 (end of 18th fiscal period)
Sold on October 3, 2014 (19th fiscal period)
Acquired on November 4, 2014 (19th fiscal period)

Owned as of the date of this document (November 18, 2014)

99 properties

171,099 million yen

1 property-1,043 million yen

7 properties

12,400 million yen

105 properties

182,456 million yen

Scheduled for acquisition on January 15, 2015 (19th fiscal period)

1 property

3,585 million yen

Owned as of January 15, 2015 (19th fiscal period) ― expected

106 properties

186,041 million yen

Note 1 : Based on information as of September 30, 2014. Occupancy rates are rounded to the nearest first decimal place.
Note 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.
Note 3 : The listed site area, total floor area figures and completion dates are based on indications given in the register.
Note 4 : The appraisal value at end of period is either the amount appraised based on an appraisal or the survey price based on a real estate price survey by a real estate appraiser rounded down to the nearest million yen.
Note 5 : The ratio of site rights (co-ownership rights) for Esty Maison GOTANDA, Esty Maison MUSASHIKOYAMA, Esty Maison SENDAGI and Esty Maison YOTSUYASAKAMACHI are 387,036/426,933, 117,678/127,609, 89,730/103,842 and245,317/329,739, respectively. However, “Site Area” indicates the total land area of the real estate in trust and “Total Floor Area” indicates the floor area of the entire building. The exclusive portions of the total floor area that the Investment
Corporation has acquired are 3,637.18㎡, 1,148.58㎡, 867.27㎡ and 2,253.07㎡, respectively.
Note 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.
Note 7 : Hamamatsu Plaza is a commercial complex divided into Hamamatsu Plaza East area and the Hamamatsu Plaza West area, comprises a total of seven buildings, with five buildings located in Hamamatsu Plaza East area (the Ito-Yokado
Building, the Akachan Honpo Building, the XEBIO Building, the Hamapla & Frespo Building, and a management Building) and two buildings located in the Hamamatsu Plaza West area (the Hamamatsu West Building and the Hamamatsu
Plaza Sports Building (Zexis)). The Investment Corporation acquired trust beneficiary interests in real estate for these other than the Hamapla & Frespo Building and the building of the Hamamatsu Plaza Sports Building (Zexis) on July 28,
2005 and started operations, but a portion was sold on March 30, 2012 and September 30, 2013. As of September 30, 2013, the Investment Corporation holds only a 49% quasi-co-ownership interest in the real estate trust beneficial interestof Hamamatsu Plaza East excluding the Ito-Yokado Building and its site (hereafter, the “Hamamatsu Plaza East XEBIO Building and Other Portions”). However, for the “site area” and “total floor area,” those for the entire Hamamatsu Plaza
East Xebio Building and Other Portions are indicated. In addition, the HAMAPLA Frespo Building is not included in the “total floor space” because only the land is owned and leased by the trustee (the buildings on it are owned by the tenants).
The “acquisition price” and “appraisal value at end of period” are for the 49% quasi-co-ownership interest of the Hamamatsu Plaza East XEBIO Building and Other Portions, and do not include the sold portion. With regard to “completion date”
the management building was completed on November 7, 2000, and Akachan Honpo Building and XEBIO Building were completed on November 9, 2000. The “completion date” of HAMAPLA & Frespo Building is not indicated, however,
because the buildings on the land are owned by the tenants.
Note 8 : b-town JINGUMAE II was sold on October 3, 2014.
Note 9 : As for Rinku Hagurazaki Plaza, its “total floor area” and “completion date” are not indicated because only the land is owned and leased by the Investment Corporation through real estate trust (the buildings on it are owned by the tenants).
Note 10 : With regard to Bell Plaza Shopping Center acquired in the fiscal period ended March 31, 2008, the former land for waterway on site, adjacent signboards and the site itself were additionally acquired at a total of ¥1million 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.

51

List of Period-End Estimated Values (1)Period-end estimated value(million yen)
Property No.

Property Name
As of Mar. 31,
2014

As of Sept. 30,
2014

Direct capitalization rate (%)
Change(million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Mar. 31,
2014

As of Sept. 30,
2014

As of Mar. 31,
2014

As of Sept. 30,
2014

As of Mar. 31,
2014

As of Sept. 30,
2014

AcquisitionPrice(million yen)

Balance sheet
amount(million yen)

Residence-1

Esty Maison GINZA

5,680

5,810

130

4.6

4.5

4.8

4.7

4.8

4.7

5,290

4,842

Residence-3

Esty Maison AZABUNAGASAKA

1,560

1,590

30

4.8

4.7

4.9

4.8

5.0

4.9

1,730

1,649

Residence-4

Esty Maison EBISU II

1,790

1,820

30

4.8

4.7

4.9

4.8

5.0

4.9

1,960

1,850

Residence-5

Esty Maison EBISU

775

774

-1

4.6

4.6

4.7

4.7

4.8

4.8

700

653

Residence-6

Esty Maison KANDA

1,360

1,380

20

4.8

4.7

4.9

4.8

5.0

4.9

1,360

1,249

Residence-8

Esty Maison KITASHINJUKU

1,440

1,430

-10

4.9

4.9

4.9

4.9

5.1

5.1

1,290

1,197

Residence-10

Esty Maison ASAKUSAKOMAGATA

1,940

1,950

10

4.9

4.9

4.9

4.9

5.1

5.1

1,870

1,690

Residence-11

Esty Maison MACHIDA

1,420

1,450

30

5.5

5.4

5.4

5.3

5.7

5.6

1,360

1,140

Residence-12

Esty Maison KAWASAKI

2,280

2,280

-

5.1

5.1

5.1

5.1

5.3

5.3

2,130

1,890

Residence-13

Esty Maison IMAIKE

192

195

3

6.3

6.2

5.7

5.6

6.5

6.4

300

270

Residence-14

Esty Maison SHINKAWASAKI

1,090

1,150

60

5.7

5.5

4.5

4.3

5.9

5.7

1,018

944

Residence-15

Esty Maison YOKOHAMA

1,980

2,010

30

5.2

5.1

5.0

4.9

5.4

5.3

2,090

1,960

Residence-16

Esty Maison KAMEIDO

1,380

1,410

30

5.2

5.1

5.0

4.9

5.4

5.3

1,650

1,473

Residence-17

Esty Maison MEGURO

974

987

13

4.8

4.7

4.6

4.5

5.0

4.9

887

815

Residence-18

Esty Maison YACHIYOMIDORIGAOKA

1,110

1,120

10

5.6

5.5

5.5

5.4

5.7

5.6

1,348

1,198

Residence-19

Esty Maison SUGAMO

1,450

1,510

60

4.8

4.6

4.6

4.4

5.0

4.8

1,510

1,486

Residence-20

Esty Maison KYOBASHI

2,700

2,700

-

5.4

5.3

5.3

5.2

5.5

5.4

2,774

2,425

Residence-21

Esty Maison MEGUROHONCHO

996

998

2

4.9

4.8

4.7

4.6

5.1

5.0

1,220

1,142

Residence-22

Esty Maison HAKURAKU

837

829

-8

5.3

5.2

5.1

5.0

5.5

5.4

844

746

Residence-23

Esty Maison MINAMIHORIE

982

1,020

38

5.3

5.1

5.1

4.9

5.5

5.3

1,055

977

Residence-24

Esty Maison GOTANDA

2,720

2,780

60

5.1

5.0

4.8

4.7

5.3

5.2

3,043

2,822

Residence-25

Esty Maison OISENDAIZAKA

2,420

2,450

30

4.9

4.8

4.7

4.6

5.1

5.0

2,440

2,279

Residence-26

Esty Maison SHINAGAWA SEASIDE

2,050

1,940

-110

4.8

4.6

4.6

4.4

5.0

4.8

2,200

2,036

Residence-27

Esty Maison MINAMIAZABU

1,180

1,130

-50

4.5

4.3

4.3

4.1

4.7

4.5

1,300

1,224

Residence-28

Esty Maison JYOUTOU

930

940

10

5.7

5.6

5.5

5.4

5.9

5.8

1,075

1,007

Residence-29

Esty Maison TSUKAMOTO

1,060

1,060

-

5.7

5.6

5.5

5.4

5.9

5.8

1,250

1,153

Residence-30

Esty Maison KAWASAKI II

1,940

2,010

70

5.0

4.8

4.8

4.6

5.2

5.0

1,900

1,773

Residence-31

Esty Maison AZABUJUBAN

2,410

2,490

80

4.5

4.3

4.3

4.1

4.7

4.5

2,700

2,633

Residence-33

Esty Maison ITABASHIHONCHO

882

905

23

4.9

4.7

4.7

4.5

5.1

4.9

1,000

939

Residence-34

Esty Maison OIZUMIGAKUEN

790

811

21

5.0

4.8

4.8

4.6

5.2

5.0

871

816

Residence-35

Esty Maison TENJINHIGASHI I

370

376

6

5.8

5.7

5.6

5.5

6.0

5.9

445

401

52

List of Period-End Estimated Values (2)Period-end estimated value(million yen)
Property No.

Property Name
As of Mar. 31,
2014

As of Sept. 30,
2014

Direct capitalization rate (%)
Change(million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Mar. 31,
2014

As of Sept. 30,
2014

As of Mar. 31,
2014

As of Sept. 30,
2014

As of Mar. 31,
2014

As of Sept. 30,
2014

AcquisitionPrice(million yen)

Balance sheet
amount(million yen)

Residence-36

Esty Maison TENJINHIGASHI II

687

698

11

5.8

5.7

5.6

5.5

6.0

5.9

840

755

Residence-37

Esty Maison SHIJONISHINOTOIN

1,050

1,070

20

5.6

5.5

5.4

5.3

5.8

5.7

1,420

1,328

Residence-39

Esty Maison HIGASHISHINAGAWA

2,270

2,320

50

5.0

4.9

4.8

4.7

5.2

5.1

2,610

2,511

Residence-40

Esty Maison HACHIOJIMINAMINO

957

958

1

5.6

5.5

5.5

5.4

5.7

5.6

1,000

919

Residence-41

Esty Maison NISHINAKAJIMA

1,920

1,920

-

5.6

5.5

5.4

5.3

5.8

5.7

2,250

2,019

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

2,380

2,450

70

4.9

4.7

4.7

4.5

5.1

4.9

2,700

2,551

Residence-43

Esty Maison MUSASHIKOYAMA

964

1,010

46

4.9

4.7

4.7

4.5

5.1

4.9

1,012

978

Residence-44

Esty Maison SENDAGI

652

680

28

4.9

4.7

4.7

4.5

5.1

4.9

757

735

Residence-45

Esty Maison YOTSUYASAKAMACHI

1,850

1,930

80

4.8

4.6

4.6

4.4

5.0

4.8

2,300

2,253

Residence-46

Esty Maison HAKATAHIGASHI

2,270

2,350

80

5.7

5.5

5.7

5.5

5.8

5.6

2,250

2,110

Residence-47

Esty Maison KAMIGOFUKU

803

828

25

5.6

5.4

5.6

5.4

5.7

5.5

900

850

Residence-48

Esty Maison SANGENJAYA

806

820

14

4.8

4.7

4.9

4.8

5.0

4.9

871

862

Residence-50

Prime Maison MUSASHINONOMORI

1,750

1,780

30

5.5

5.4

5.4

5.3

5.7

5.6

1,560

1,527

Residence-51

Prime Maison HIGASHISAKURA

1,310

1,340

30

5.5

5.4

5.4

5.3

5.7

5.6

1,140

1,093

Residence-52

Prime Maison KAYABAKOEN

721

734

13

5.7

5.6

5.6

5.5

5.9

5.8

640

622

Residence-53

Esty Maison SANGENJAYA II

794

807

13

4.9

4.8

5.0

4.9

5.1

5.0

714

696

Residence-54

Esty Maison ITABASHI C6

2,300

2,340

40

5.0

4.9

4.8

4.7

5.2

5.1

2,260

2,202

Residence-55

MAST HAKATA

2,230

2,280

50

5.7

5.6

5.2

5.1

5.9

5.8

1,920

1,902

Residence-56

Esty Maison KINSHICHO

1,150

1,180

30

5.0

4.8

4.7

4.6

5.2

5.0

1,050

1,079

Residence-57

Esty Maison MUSASHIKOGANEI

1,610

1,610

-

5.0

5.0

5.1

5.1

5.2

5.2

1,450

1,489

Residence-58

Prime Maison GOKISO

1,740

1,760

20

5.5

5.4

5.5

5.4

5.7

5.6

1,640

1,615

Residence-59

Prime Maison YUHIGAOKA

847

851

4

5.4

5.3

5.2

5.1

5.6

5.5

810

797

Residence-60

Prime Maison KITATANABE

547

553

6

5.7

5.6

5.5

5.4

5.9

5.8

540

532

5.3
(Note 4)

5.9

5.8

1,810

1,816

Residence-61

Prime Maison MOMOCHIHAMA

1,930

1,950

20

5.7

5.6

5.3
(Note 4)

Residence-62

Esty Maison AKIHABARA

1,700

1,760

60

4.9

4.7

4.6

4.5

5.1

4.9

1,560

1,567

Residence-63

Esty Maison SASAZUKA

2,950

2,980

30

4.9

4.8

4.7

4.6

5.1

5.0

2,830

2,839

Residence-64

Prime Maison GINZA EAST

5,410

5,580

170

4.7

4.5

4.4

4.3

4.9

4.7

5,205

5,168

Residence-65

Prime Maison TAKAMI

948

955

7

5.3

5.2

5.4

5.3

5.5

5.4

905

901

Residence-66

Prime Maison YADAMINAMI

748

749

1

5.7

5.6

5.6

5.5

5.9

5.8

715

712

Residence-67

Prime Maison TERIHA

1,200

1,220

20

5.9

5.8

5.7

5.6

6.1

6.0

1,110

1,103

1,440

20

5.5

5.4
(Note 4)

5.3
(Note 4)

5.7

1,350

1,337

Residence-68

Esty Maison HIGASHISHIRAKABE

1,420

5.6

5.8

53

List of Period-End Estimated Values (3)Period-end estimated value(million yen)
Property No.

Property Name
As of Mar. 31,
2014

As of Sept. 30,
2014

Direct capitalization rate (%)
Change(million yen)

Discount rate (%)

Terminal capitalization rate (%)

As of Mar. 31,
2014

As of Sept. 30,
2014

As of Mar. 31,
2014

As of Sept. 30,
2014

As of Mar. 31,
2014

As of Sept. 30,
2014

AcquisitionPrice(million yen)

Balance sheet
amount(million yen)

Residence-69

Esty Maison SENGOKU

1,180

1,190

10

4.7

4.6

4.5

4.4

4.9

4.8

1,075

1,111

Residence-70

Esty Maison DAIZAWA

1,960

1,970

10

4.7

4.6

4.5

4.4

4.9

4.8

1,870

1,928

Residence-71

Esty Maison TOGOSHI

1,490

1,520

30

4.8

4.7

4.9

4.8

5.0

4.9

1,370

1,412

Residence-72

Esty Maison KAWARAMACHI

1,770

1,790

20

5.3

5.2

5.4

5.3

5.5

5.4

1,640

1,646

Residence-73

Esty Maison NISHITENMA

1,570

1,590

20

5.3

5.2

5.4

5.3

5.5

5.4

1,440

1,448

Residence-74

Esty Maison SHIROKANEDAI

2,130

2,140

10

4.8

4.7

4.6

4.5

5.0

4.9

1,900

1,977

Residence-75

Esty Maison HIGASHISHINJUKU

1,490

1,490

-

4.7

4.7

4.8

4.8

4.9

4.9

1,370

1,405

Residence-76

Esty Maison MOTOAZABU

1,280

1,330

50

4.6

4.5

4.7

4.6

4.8

4.7

1,170

1,204

Residence-77

Esty Maison TORITSUDAIGAKU

784

787

3

4.7

4.6

4.8

4.7

4.9

4.8

729

752

Residence-78

Esty Maison MUSASHIKOYAMA II

901

921

20

4.8

4.7

4.6

4.5

5.0

4.9

844

869

Residence-79

Esty Maison NAKANO

1,650

1,660

10

4.8

4.7

4.6

4.5

5.0

4.9

1,540

1,585

Residence-80

Esty Maison SHINNAKANO

906

906

-

4.9

4.8

4.7

4.6

5.1

5.0

847

872

Residence-81

Esty Maison NAKANOFUJIMICHO

934

920

-14

4.8

4.8

4.9

4.9

5.0

5.0

863

888

Residence-82

Esty Maison TETSUGAKUDO

1,090

1,100

10

4.9

4.8

4.7

4.6

5.1

5.0

954

981

Residence-83

Esty Maison KOENJI

1,070

1,070

-

4.7

4.7

4.8

4.8

4.9

4.9

958

987

Residence-84

Esty Maison OSHIAGE

2,160

2,210

50

5.0

4.9

5.0

4.9

5.2

5.1

1,950

2,006

Residence-85

Esty Maison AKABANE

2,900

2,940

40

5.0

4.9

4.8

4.7

5.2

5.1

2,730

2,805

Residence-86

Esty Maison OJI

1,450

1,480

30

5.0

4.9

4.8

4.7

5.2

5.1

1,380

1,420

Residence-87

Prime Maison WASEDA

1,370

1,390

20

4.8

4.7

4.6

4.5

5.0

4.9

1,280

1,299

Residence-88

Prime Maison HATCHOBORI

1,230

1,260

30

4.8

4.7

4.6

4.5

5.0

4.9

1,160

1,178

Residence-89

Prime Maison JIMBOCHO

1,670

1,710

40

4.8

4.7

4.5

4.5

5.0

4.9

1,640

1,661

Residence-90

Prime Maison GOTENYAMA EAST

2,420

2,530

110

4.6

4.4

4.3

4.2

4.8

4.6

2,120

2,148

Residence-91

MAST LIFE AKIHABARA

497

507

10

4.9

4.8

4.7

4.6

5.1

5.0

480

492

Residence-92

Esty Maison AOI

2,230

2,240

10

5.5

5.4

5.5

5.4

5.7

5.6

2,160

2,210

Residence-93

Esty Maison YAKUIN

2,140

2,180

40

5.3

5.2

5.4

5.3

5.5

5.4

2,008

2,124

Residence-94

Esty Maison KINSHICHO II

-

7,250

-

-

4.8

-

4.6

-

5.0

6,720

6,987

Residence-95

Esty Maison OJIMA

-

7,990

-

-

4.8

-

4.6

-

5.0

7,120

7,384

Residence-96

Prime Maison FUJIMIDAI

-

1,880

1,832

Residence-97

Esty Maison TSURUMAI-

Residence Subtotal

134,874

-

-

5.5

-

5.3

-

5.7

1,755

4,090

-

-

5.6

-

5.4

-

5.8

3,760

3,933

158,249

2,165(Note 5)

5.1

5.0

5.0

4.9

5.3

5.2

153,562

150,139

54

List of Period-End Estimated Values (4)Period-end estimated value(million yen)
Property No.

Property Name
As of Mar. 31,
2014

As of Sept. 30,
2014

2,224

2,219

Direct capitalization rate (%)
Change(million yen)

Discount rate (%)

Terminal capitalization rate (%)

AcquisitionPrice(million yen)

Balance sheet
amount(million yen)

As of Mar. 31,
2014

As of Sept. 30,
2014

As of Mar. 31,
2014

As of Sept. 30,
2014

As of Mar. 31,
2014

As of Sept. 30,
2014

-4

6.6

6.6

6.3

6.3

6.7

6.7

3,820

3,653

Retail-1

HAMAMATSU Plaza (Note 6)

Retail-2

b-town JINGUMAE II (Note 7)

939

983

44

4.4

4.2

4.2

4.0

4.6

4.4

1,043

1,013

Retail-3

RINKU HAGURAZAKI Plaza (Note 8)

4,960

5,040

80

-

-

-

-

-

-

4,697

4,734

Retail-4

b-town MINAMIAOYAMA

1,120

1,120

-

4.6

4.5

4.6

4.5

4.7

4.6

1,530

1,508

Retail-5

KOJIMA NEW KAMIFUKUOKATEN

1,290

1,330

40

6.4

6.2

6.2

6.0

6.6

6.4

1,300

1,254

Retail-7

b-toss IKEBUKURO

1,610

1,640

30

5.2

5.1

5.2

5.1

5.3

5.2

1,980

1,974

Retail-8

Joy Square YUGAWARA

1,530

1,530

-

6.4

6.4

6.3

6.3

6.6

6.6

1,810

1,695

Retail-9

Bell Plaza Shopping Center

1,190

1,190

-

6.3

6.3

6.2

6.2

6.4

6.4

1,355

1,379

Other real estate in trust （retail facilities） Subtotal

14,863

15,052

189

5.7

5.6

5.6

5.5

5.8

5.8

17,536

17,214

Portfolio Total

149,737

173,301

2,354(Note 5)

5.2

5.1

5.0

4.9

5.4

5.2

171,099

167,353

Note 1: Amounts of less than one million yen are rounded down.
Note 2: “Period-end estimated value,” “Direct capitalization rate,” “Discount rate” and “Terminal capitalization rate” are the amount based on real estate appraisal or on real estate appraisal reports or survey price found in real estate surveys while “Balance
sheet amount” is the amount recorded on the balance sheet as of September 30, 2014 for assets owned at the end of the fiscal period ended September 30, 2014 (the 18th fiscal period).
Note 3: “Direct capitalization rate,” “Discount rate” and “Terminal capitalization rate” in the residence subtotal, other real estate in trust （retail facilities） subtotal and portfolio total are the simple averages of the figures for the owned properties and arerounded to the nearest first decimal place.
Note 4: A master lease agreement with rent guarantee is concluded with Sekiwa Real Estate Kyushu, Ltd. with regard to Prime Maison MOMOCHIHAMA. In calculating the period-end estimated value as of March 31, 2014, the property’s discount rate until
the expiry of the contract is 5.3% and its discount rate after the expiry of the contract is 5.5%, while in calculating the period-end estimated value as of September 30, 2014, the property’s discount rate until the expiry of the contract is 5.3% and its
discount rate after the expiry of the contract is 5.5%. Also, a master lease agreement with rent guarantee is concluded with Sekiwa Real Estate Chubu, Ltd. with regard to Esty Maison HIGASHISHIRAKABE. In calculating the period-end estimatedvalue as of March 31, 2014 the property’s discount rate until the expiry of the contract is 5.4% and its discount rate after the expiry of the contract is 5.6%, while in calculating the period-end estimated value as of September 30, 2014, the property’s
discount rate until the expiry of the contract is 5.3% and its discount rate after the expiry of the contract is 5.5%. Furthermore, for the sake of convenience, the above chart shows the discount rates until the expiry of the contracts.
Note 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 March 31, 2014 (the 17th Fiscal Period) (excluding the four properties
acquired in the period ended September 30, 2014 (the 18th fiscal period)).
Note 6: Hamamatsu Plaza is a commercial complex divided into Hamamatsu Plaza East area and the Hamamatsu Plaza West area, comprises a total of seven buildings, with five buildings located in Hamamatsu Plaza East area (the Ito-Yokado building,the Akachan Honpo building, the Xebio building, the Hamapla & Frespo building, and a management building) and two buildings l ocated in the Hamamatsu Plaza West area (the Hamamatsu West building and the Hamamatsu Plaza Sports building(Zexis)). The Investment Corporation acquired trust beneficiary interests in real estate for these other than the Hamapla & Frespo building and the building of the Hamamatsu Plaza Sports building (Zexis) on July 28, 2005 and started operations,but a portion was sold on March 30, 2012 and September 30, 2013. As of September 30, 2013, the Investment Corporation holds only a 49% quasi-co-ownership interest in the trust beneficiary interest in real estate for Hamamatsu Plaza East
excluding the Ito-Yokado building and its site (hereafter, the “Hamamatsu Plaza East Xebio Building and Other Portions”). Consequently, “Acquisition price” and “Fiscal period-end appraisal value” are for the 49% quasi-co-ownership interest of theHamamatsu Plaza East Xebio Building and Other Portions and do not include the portion that was sold.
Note 7: b-town JINGUMAE II was sold on October 3, 2014.
Note 8: As for RINKU HAGURAZAKI Plaza, “Direct capitalization rate,” “Discount rate” and “Terminal capitalization rate” are not indicated because only the land is owned by the Investment Corporation through real estate trust and its appraisal method
differs from that of other acquired assets. Please refer to the following table for the appraisal of the property.

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

Property Name

Retail-3

RINKU HAGURAZAKI Plaza

Fiscal period ended
March 31, 2014
(the 17th FP)

Fiscal period ended
September 30, 2014
(the 18th FP)

6.1~6.7*

5.8~6.5** There are three buildings on the property which are evaluation objects
and the discount rate in the DCF method differs according to contract
conditions and such.

55

Overview of Interest-Bearing Debt (1)As of date of document■ Loans

Long-Term loans payable

Current portion of long-termloans payable

Short-TermloanspayableLenderMizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Subtotal
The Norinchukin Bank
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Resona Bank, Ltd.
The Senshu Ikeda Bank, Ltd.
The Shizuoka Bank, Ltd.
The 77 Bank, Ltd.
Shinkin Central Bank
The Hiroshima Bank, Ltd.
Mizuho Bank, Ltd.
Subtotal
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Aozora Bank, Ltd.
Shinkin Central Bank
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Ltd.
Development Bank of Japan Inc.
The Bank of Fukuoka, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
The Yamaguchi Bank, Ltd.
Development Bank of Japan Inc.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Norinchukin Bank
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation

Drawdown Date
May 1, 2014
November 4, 2014

July 29, 2011

February 1, 2012

May 9, 2011

March 2, 2012

March 8, 2012

August 2, 2012

August 2, 2012

Balance as of date of document(Note 1)
¥4,350 million¥4,350 million¥500 million¥500 million¥9,700 million¥1,500 million¥500 million¥500 million¥950 million¥500 million¥500 million¥500 million¥500 million¥500 million¥700 million¥6,650 million¥2,000 million¥425 million¥425 million¥100 million¥100 million¥200 million¥200 million¥200 million¥100 million¥100 million¥300 million¥200 million¥1,200 million¥500 million¥400 million¥1,100 million¥1,300 million¥500 million¥941 million¥1,470 million¥1,470 million¥2,352 million¥176 million¥176 million

Interest Rate
(Note 2)

Fixed/Floating

Repayment Date

Use

Collateral

0.34000%

Floating

February 27, 2015

(Note 3)

Unsecured

0.34000%

Floating

August 31, 2015

(Note 3)

Unsecured

1.15900%

Fixed(Note 4)

February 27, 2015

(Note 5)

Unsecured

0.99850%

Fixed(Note 4)

February 27, 2015

(Note 3)

Unsecured

1.57000%

Fixed

February 29, 2016

(Note 5)

Unsecured

1.18975%

Fixed(Note 4)

February 28, 2017

(Note 3)

Unsecured

1.19475%

Fixed(Note 4)

February 28, 2017

(Note 6)

Unsecured

1.15475%

Fixed(Note 4)

February 28, 2019

(Note 5)

Unsecured

0.95750%

Fixed(Note 4)

August 31, 2017

(Note 5)

Unsecured
56

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

LenderMizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Ltd.
The 77 Bank, Ltd.
The Hiroshima Bank, Ltd.
Mizuho Bank, Ltd.
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Aozora Bank, Ltd.
Shinkin Central Bank
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Ltd.
Aozora Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Ltd.
Aozora Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Drawdown Date

February 8, 2013

February 28, 2013

February 28, 2013

March 1, 2013

August 30, 2013

August 30, 2013

January 31, 2014

Balance as of date of document(Note 1)¥750 million¥2,250 million¥750 million¥750 million¥400 million¥500 million¥1,700 million¥2,142 million¥500 million¥500 million¥500 million¥100 million¥500 million¥500 million¥200 million¥200 million¥300 million¥400 million¥300 million¥200 million¥700 million¥500 million¥200 million¥1,000 million¥500 million¥200 million¥2,500 million¥600 million¥200 million¥500 million¥500 million¥200 million¥200 million¥1,100 million¥500 million¥300 million¥300 million¥400 million¥800 million

Interest Rate
(Note 2)

Fixed/Floating

Repayment Date

Use

Collateral

0.89900%

Fixed(Note 4)

February 28, 2019

(Note 3)

Unsecured

1.02225%

Fixed(Note 4)

February 28, 2020

(Note 5)

Unsecured

0.75600%

Fixed(Note 4)

February 28, 2018

(Note 5)

Unsecured

0.65475%

Fixed(Note 4)

February 28, 2017

(Note 3)

Unsecured

1.17200%

Fixed(Note 4)

August 31, 2020

(Note 5)0.61000%

Floating

August 31, 2018

(Note 5)

Unsecured

1.17350%

Fixed(Note 4)

February 28, 2022

(Note 3)

Unsecured

Unsecured

57

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

LenderDrawdown Date

Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking Corporation
Resona Bank, Ltd.
The Senshu Ikeda Bank, Ltd.
Mizuho Bank, Ltd.
Mizuho Trust & Banking Co., Ltd.
Sumitomo Mitsui Banking Corporation
Sumitomo Mitsui Trust Bank, Limited
Mitsubishi UFJ Trust and Banking Corporation
The Yamaguchi Bank, Ltd.
Resona Bank, Ltd.
Mizuho Bank, Ltd
Sumitomo Mitsui Banking Corporation
The Shizuoka Bank, Ltd.
Shinkin Central Bank
The Bank of Fukuoka, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Sumitomo Mitsui Banking Corporation

February 28, 2014

February 28, 2014

February 28, 2014

March 28, 2014

August 29, 2014
August 29, 2014
Subtotal
Total loans

Balance as of date of document(Note 1)¥400 million¥980 million¥500 million¥1,500 million¥500 million¥800 million¥500 million¥400 million¥500 million¥500 million¥500 million¥500 million¥500 million¥500 million¥405 million¥1,145 million¥500 million¥500 million¥500 million¥300 million¥300 million¥2,500 million¥2,000 million¥900 million¥2,450 million¥1,950 million¥62,609 million

Interest Rate
(Note 2)

Fixed/Floating

Repayment Date

1.11000%

Fixed(Note 4)

February 28, 2022

0.95225%

Fixed(Note 4)

February 26, 2021

0.79614%

Fixed(Note 4)

0.97300%

Fixed(Note 4)0.96475%

Fixed(Note 4)0.83600%

Use

Collateral(Note 5)

Unsecured(Note 5)

Unsecured(Note 5)

Unsecured(Note 3)

Unsecured

August 31, 2022

(Note 5)

Unsecured

Fixed(Note 4)

August 31, 2021

(Note 5)

UnsecuredInterest Rate
(Note 2)

Fixed/Floating

Redemption Date

Use

Collateral

0.63000%
1.00000%
0.37400%
1.06900%
0.87100%

Fixed
Fixed
Fixed
Fixed
Fixed

February 28, 2018
February 28, 2020
February 28, 2019
February 28, 2024
August 30, 2024

(Note 3)(Note 5)

Unsecured(Note 5)

Unsecured(Note 5)

Unsecured

February 28, 2020

February 26, 2021

¥78,959 million■ Investment Corporation Bonds
Name

Date of issuance

Balance as of date of document(Note 1)First Series Unsecured Investment Corporation Bonds
Second Series Unsecured Investment Corporation Bonds
Third Series Unsecured Investment Corporation Bonds
Fourth Series Unsecured Investment Corporation Bonds
Fifth Series Unsecured Investment Corporation Bonds

February 28, 2013
February 28, 2013
February 28, 2014
February 28, 2014
August 29, 2014

¥4,000 million¥2,000 million¥2,500 million¥3,000 million¥3,000 million

Total Investment Corporation Bonds
Total interest-bearing debt

¥14,500 million¥93,459 million

Note 1: Amounts are rounded down to the nearest million yen.
Note 2: Interest rates as of date of document are indicated.
Note 3: Acquisition funds for trust beneficiary interest in real estate.
Note 4: Interest rate swap agreements are concluded in order to avoid the risk of rising interest rates, and the interest rates indicated are the rates fixed with the interest rate swap agreements.
Note 5: Repayment funds for existing borrowings
Note 6: Redemption funds for the Second Series Unsecured Investment Corporation Bonds issued in March 2007 (private placement limited to qualified institutional investors)

58

Overview of Unitholders as of September 30, 2014
Major Unitholders

Diversification of Unitholders
Investment Units
Owned(units)Ownership ofInvestment Units
Outstanding (%)

Japan Trustee Services Bank, Ltd.
(Trust Account)

222,792

24.34

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

61,658

6.73

Sekisui House Ltd.

39,000

4.26

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

37,856

4.13

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

36,132

3.94

Nomura Bank (Luxembourg) S.A.

33,481

3.65

THE FUJI FIRE AND MARINE INSURANCECOMPANY, LIMITED

20,6302.25

Deutsche Bank AG London-PB Non-Treaty
Clients 613

20,1092.19

Mizuho Trust & Banking Co., Ltd.

15,204

1.66

The Hachijuni Bank, Ltd.

14,365

1.56

Name / Company Name

Total

Financial Institutions
Other domestic firms(including securities companies)
127 (1.09%)
262 (2.26%)

Foreign firms

Individuals and others

104 (0.90%)

Sept. 30,
2014
11,612
unitholders

11,119 (95.75%)
98 (1.30%)
208 (2.77%)
96 (1.28%)

Mar. 31,
2014
7,511
unitholders

7,109 (94.65%)
107 (1.18%)
250 (2.76%)
108 (1.19%)

Sept. 30,
2013
9,052
unitholders

8,587 (94.86%)

0%

20%

40%

60%

80%

100%

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

501,227

54.76

Sept. 30,
2014
915,240 Units

571,655 Units(62.46%)88,186 Units 118,714 Units 136,685 Units(9.64%)(12.97%)(14.93%)Mar. 31,2014
159,605 Units

104,356 Units(65.38%)16,558 Units 16,412 Units 22,279 Units(10.37%)(10.28%)(13.96%)

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

■The status of large holdings as determined by the large share holdings reports (including
reports of changes) submitted by November 14, 2014 is as follows.
Name

Sumitomo Mitsui
Trust Bank, Limited

Mizuho Trust & Banking
Co., Ltd

Total units held

112,891 units

98,507 units

Total percentage ofOwnership

12.33%

10.76%

Submission date

October 6, 2014

October 22, 2014

Sept. 30,2013
159,605 Units

90,687 Units(56.82%)0%

20%

19,360 Units(12.13%)40%

21,881 Units(13.71%)60%

80%

27,677 Units(17.34%)100%

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

59

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

CapitalShareholders

Number of
officers andemployees

200 million yen

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

List of Officers
President

Osamu Minami

Vice President

Nobuyoshi Sato

Senior Managing
Director

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

Director

Masaki Katsura (Real Estate Management Department)

Director (part-time)

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

Auditor (part-time)

Naoki Kawamura (Section Manager, Legal Department,
Sekisui House, Ltd.)33 (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

IR & Financial Affairs
Department

Management
Department

60

Historical Investment Unit Price
Investment Unit Price and Trading Volume after Change of Sponsors(Yen)
150,000

2,100

100,000

1,400

50,000700

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

TSE REIT Index (right axis)

0

0

Mar.
2010

Sep.
2010

Mar.
2011

Sep.
2011

Mar.
2012

Sep.
2012

Mar.
2013

Sep.
2013

Mar.
2014

Sep.
2014

（Units）

30,000

Trading volume

25,00020,00015,00010,0005,000
0

201 0/3/3 1

201 0/4/3 0

Mar.
2010

201 0/5/3 1

201 0/6/3 0

201 0/7/3 1

201 0/8/3 1

201 0/9/3 0

201 0/10/ 31

Sep.
2010

201 0/11/ 30

201 0/12/ 31

201 1/1/3 1

201 1/2/2 8

201 1/3/3 1

201 1/4/3 0

Mar.
2011

201 1/5/3 1

201 1/6/3 0

201 1/7/3 1

201 1/8/3 1

201 1/9/3 0

201 1/10/ 31

Sep.
2011

201 1/11/ 30

201 1/12/ 31

201 2/1/3 1

201 2/2/2 9201 2/3/3 1

201 2/4/3 0

Mar.
2012

201 2/5/3 1

201 2/6/3 0

201 2/7/3 1

201 2/8/3 1

201 2/9/3 0

Sep.
2012

201 2/10/ 31

201 2/11/ 30

201 2/12/ 31

201 3/1/3 1

201 3/2/2 8

201 3/3/3 1

201 3/4/3 0

Mar.
2013

201 3/5/3 1

201 3/6/3 0

201 3/7/3 1

201 3/8/3 1

201 3/9/3 0

201 3/10/ 31

Sep.
2013

201 3/11/ 30

201 3/12/ 31

201 4/1/3 1

201 4/2/2 8

201 4/3/3 1

201 4/4/3 0

Mar.
2014

201 4/5/3 1

201 4/6/3 0

201 4/7/3 1

201 4/8/3 1

201 4/9/3 0

Sep.
2014

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

61

Memo

62

◇ 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 the purchase ofinvestment units in Sekisui House SI Residential investment Corporation and to undertake investment decisions at your own
discretion.
◇ This document is not a disclosure document or report under the Financial Instruments and Exchange Act, the Act on Investment
Trusts and Investment Corporations, public listing regulations of the Tokyo Stock Exchange or other related laws and regulations.
◇ Strategies, goals and forward-looking statements contained herein are based upon specific assumptions and judgments made asof 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 and other factors. Accordingly, strategies, goals andforecasts regarding future dates do not guarantee the Investment Corporation’s future performance, operating results or financial
position. Actual results may differ significantly from explicit or implicit statements made herein regarding future performance,
operating results, financial position or other conditions.

◇ While Sekisui House SI Investment Corporation has taken due care in the preparation of this document, it does not guarantee theaccuracy, completeness, rationality or fairness of its content. Readers are also cautioned that the contents of this document are
subject to change or removal without prior notice.
◇ Duplication and reproduction of the content contained herein without prior consent is prohibited.
◇ 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 nowarranties as to its accuracy or completeness.

6364