Sekisui House SI Residential Investment Corporation

Sekisui House SI Residential Investment Corporation

21

stSemi-Annual Report
21st Fiscal Period(from October 1, 2015 to March 31, 2016)

Sekisui House SI Residential Investment Corporation
3-1-31 Minami-Aoyama, Minato-ku, Tokyo

http://www.shsi-reit.co.jp/eng/Sekisui House SI Residential Investment Corporation (the Investment Corporation) is a J-REIT
investing in residential properties, with Sekisui House, Ltd. serving as the main sponsor.
Collaborative Structure with the Sekisui House GroupThe Investment Corporation has established a collaborative structurewith the Sekisui House Group, the top manufacturer in the housing industry, which makes it possible to manage the investment properties overtheir life cycles from acquisition to operation and administration.
Planning

Development

Ownership

Operation

Administration

Features of the Investment Corporation
Residential Portfolio Focused on Greater Tokyo
that Has a Deep and Broad Demand Base
Investment Ratio of
Residential Properties

Asset Size
Total acquisition
price¥200.7 billion

Number of owned
properties

112

properties

Ratio of residential
properties
Number of residential
properties

As of June 30, 2016

97.3
110

Investment Ratio of Greater Tokyo
for Residential Properties%

Ratio of Greater Tokyo
for residential properties

properties

Number of residential
properties in Greater Tokyo

As of June 30, 2016

71.2
74

%

properties

As of June 30, 2016

Portfolio of Relatively New Properties Achieving High Occupancy
Occupancy Ratio

Collaboration

with the Sekisui House Group

Entire portfolio

Sekiwa Real Estate GroupSekisui House, Ltd.

96.2

%

Residential
properties

As of May 31, 2016

Average Property Age

96.0

%

Entire portfolio

9.3

years

Residential
properties

As of June 30, 2016

9.2

years

Credit Ratings Based on Stable Financial Base

Feedback of supply anddemand information onrental housing

Collaboration forplanning anddeveloping rental
housing

Collaboration as service
provider of operation andadministration as well as asupply source of properties

Sekisui House SI Asset Management Ltd.
Asset Management Company

Entrustment ofasset management

Sekisui House SI Residential Investment Corporation

1

Status of Credit Ratings
Feedback of mattersrelated to operation,
administration andsupply of properties

Japan Credit Rating Agency, Ltd. (JCR)(Long-term issuer rating)AA-

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

As of June 30, 2016

A+
(Stable)Outline of Portfolio Development Policy
Invests in real estate-related assets that are mainly used as residences
Positions Greater Tokyo / Major Urban Areas as the focusedinvestment area, while conducting diversified investment inGreater Tokyo / Other Urban Areas and Major Cities Nationwide
Invests in properties comprised of a variety of residential types,
primarily Single and Compact Type residences

2

Sekisui House SI Residential Investment Corporation

To Our Unitholders
Dear Investors,
I would like to express our sincere gratitude for your continued and loyal patronage.
Under the basic policy of asset management to “secure stable earnings over the medium to long term and achieve solid growth inits assets under management,” Sekisui House SI Residential Investment Corporation (the “Investment Corporation”) aims tobecome a leading company among REITs investing in residential properties by making the best use of the comprehensive
capabilities of the Sekisui House Group, for which Sekisui House, Ltd., the main sponsor, serves as the core company.
Now, let me report on the business results of the Investment Corporation for the fiscal period ended March 2016 (21st fiscal
period).
The Investment Corporation makes it a basic strategy to build a portfolio that is centered on the high-quality rental residential
properties planned and developed by the Sekisui House Group, aiming to invest in real estate-related assets that are mainly used as
residences. As for the existing retail properties, the Investment Corporation will consider making decisions to dispose them at theappropriate time while endeavoring to continue their stable management for the moment.
In the fiscal period under review, the Investment Corporation acquired MAST LIFE HINO from Sekiwa Real Estate, Ltd. in October
2015, Prime Maison YOKOHAMA NIHON-ODORI from Sekisui House, Ltd. in January 2016, and KOBE Women’s Student Housing
through proprietary property acquisition routes of the Asset Management Company in March 2016, in an effort to enhance its
residential portfolio. The acquisition of KOBE Women’s Student Housing represents our first investment in a student housing. Since
the percentage of students advancing to college is largely on the modest rise even amid the falling birth rate, demand for student
housings in areas around colleges with many applicants is believed to remain stable. Meanwhile, we conducted disposition of theexisting retail properties, disposing four of our existing retail properties in a lump sum in November 2015. By doing so, we wereable to obtain gain on sale as a whole while curbing realization of unrealized loss from certain properties. Moreover, we disposed
Esty Maison IMAIKE, a residential property, in January 2016, based on the judgment that the disposition should contribute toenhancement of the portfolio quality.

Osamu Minami
Executive Director, Sekisui House
SI Residential Investment Corporation
Consequently, the number of properties owned was 108 as of the end of the 21st fiscal period, with the asset size totaling 193.8
President, Sekisui Housebillion yen, and the ratio of residential properties in the entire portfolio rose to 97.2%. In terms of the occupancy ratio of the entire
SI Asset Management, Ltd.
portfolio for the fiscal period, the period-end occupancy ratio stood at 97.2% and the period average occupancy ratio was 96.5%,
both maintaining high levels.
In terms of financing, the Investment Corporation made early repayment of loans totaling 8.2 billion yen by utilizing part of theproceeds from the disposition of the four retail properties mentioned above, as we worked to stably control LTV and reduceborrowing costs. On the other hand, we newly borrowed 11.3 billion yen in total to fund the acquisition of the above-mentioned
three residential properties, by taking advantage of our financial abilities including the borrowing capacity created by the said early
repayment of loans.
As a result of these endeavors, the Investment Corporation posted operating revenue of 6,543 million yen, operating income of
2,741 million yen and net income of 2,210 million yen for the 21st fiscal period, with cash distribution per unit coming to 2,125 yen.
Moreover, on April 1, 2016 or at the beginning of the 22nd fiscal period ending September 2016, the Investment Corporationacquired Prime Maison SHIBUYA and Prime Maison HATSUDAI from Sekisui House, Ltd., and Esty Maison UEMACHIDAI and Esty
Maison KOBE-SANNOMIYA from Sekiwa Real Estate Kansai, Ltd. The acquisition expanded the asset size to 200.7 billion yen,achieving the strategic target of “asset size of 200 billion yen while paying attention to the cash distribution level” set for Phase II of
its growth strategy. Starting in the 22nd fiscal period, the Investment Corporation will shift to Phase III of its growth strategy,
aiming for an “asset size of 300 billion yen while maintaining/increasing the cash distribution level.”

Performance Highlights
Cash Distribution per Unit

Business Results and Distribution

Summary of Management Results for the 21st Fiscal Period Ended March 2016
Status of Business Results andCash Distributions

Financing Activities

・Operating revenue: ¥6,543 million, operating income: ¥2,741 million, net income: ¥2,210 million, provision for reserve for
reduction entry: ¥47 million
・Cash distribution per unit: ¥2,125 (up 0.2% over initial forecast)
・Conducted early repayment of loans totaling ¥8.2 billion in December 2015 by utilizing part of proceeds from disposition ofretail properties
・Conducted new borrowings (¥11.3 billion in total) to fund the acquisition of 3 residential properties acquired in October
2015, January 2016 and March 2016
・Occupancy ratio (entire portfolio): 97.2% (at end of 21st fiscal period (March 31, 2016))

Status of Portfolio Management

・Acquired 3 properties comprising 2 residential properties through the property pipelines of the Sekisui House Group anda student housing by utilizing proprietary property acquisition routes of the Asset Management Company
・Disposed 4 retail properties and a residential property with the intention of further reinforcing stability, as well as
enhancing the quality, of the portfolio

3

Settlement Date

Mar. 2014

Sept. 2015

Mar. 2015

Sept. 2015

Mar. 2016

Sept. 2016

Fiscal Period

17th FP

18th FP

19th FP

20th FP

21st FP

22nd FP (Forecast)

Operating revenue (million yen)

4,952

5,591

6,286

6,411

6,543

6,682

Operating income (million yen)

2,242

2,463

2,814

2,743

2,741

2,720

Ordinary income (million yen)

1,767

1,952

2,305

2,211

2,214

2,172

Net income (million yen)

1,765

1,950

2,302

2,209

2,210

2,169

-

-

77

49

47

-

2,212 (11,062)

2,131 (10,655)

2,185 (10,925)

2,122 (10,610)

2,125 (10,625)

2,130 (10,650)

Provision for reserve for reduction entry (million yen)
Cash distribution per unit (yen)(Note 1) The values of respective items in the “Sept. 2016 22nd FP (Forecast)” column are the figures as of May 16, 2016 (the announcement date of business results) calculated under certain assumptions. The actual operating revenue, operating
income, ordinary income, net income, provision for reserve for reduction entry and cash distribution per unit may be subject to change due to such factors as additional acquisitions or dispositions of real estate in the future, changes in thereal estate and other markets and changes in the asset management environment and other conditions surrounding the Investment Corporation. In addition, the Investment Corporation does not guarantee any actual results or distribution
amount in providing the forecast figures. Furthermore, the Investment Corporation executed a five-for-one split of its investment units on April 1, 2014. Taking into account the effect of the investment unit split, the cash distribution per unit
for the fiscal period ended March 2014 (17th fiscal period) and before represents the figure obtained by dividing the actual cash distribution per unit for each period (figure in parenthesis) by 5. For the fiscal period ended September 2014
(18th fiscal period) and after, the figure in parentheses for each period indicates the value obtained by multiplying the actual cash distribution per unit or the forecast by 5. The same follows hereafter.
(Note 2) Cash distribution per unit for the fiscal period ended March 2015 (19th fiscal period), the fiscal period ended September 2015 (20th fiscal period) and the fiscal period ended March 2016 (21st fiscal period) is calculated based on the amountof unappropriated retained earnings less the provision for reserve for reduction entry of 77 million yen, 49 million yen and 47 million yen, respectively, divided by the number of investment units issued as of the end of each fiscal period.

Changes in Business Results● Operating Revenue / Net Income

Net income

Operating revenue(million yen)

6,286

6,000
5,000

6,411

2,500 （11,062）

6,543

2,212

5,591

2,000

4,952

3,000

1,765

1,950

2,302

2,209

2,210

1,000
500

1,000
0

（10,655） （10,925） （10,610） （10,625）
2,185
2,125
2,131
2,122

1,500

4,000

2,000

● Cash Distribution per Unit
(yen)

7,000

Furthermore, the Investment Corporation was included in the FTSE EPRA/NAREIT Global Real Estate Index Series on March 21,
2016. The inclusion should allow us to expect further broadening of our potential investor base and an increase in the liquidity of
our investment units.
We appreciate your continued support as in the past.

¥2,12521st Fiscal Period Ended March 2016 Cash distribution per unit

17th FP
18th FP
19th FP
20th FP
21st FP(Mar. 31, 2014) (Sept. 30, 2014) (Mar. 31, 2015) (Sept. 30, 2015) (Mar. 31, 2016)

0

17th FP
18th FP
19th FP
20th FP
21st FP(Mar. 31, 2014) (Sept. 30, 2014) (Mar. 31, 2015) (Sept. 30, 2015) (Mar. 31, 2016)

Ta b l e o f C o n t e n t s
3

To Our Unitholders

4

Performance Highlights

5

Portfolio Management

6

Stable Financial Base

7

Examples of Initiatives in CSR andEnvironmental Activities
Partial Amendments to the Asset Management Guidelines
and Change in Asset Management Fee System
Portfolio Map

8
9

11 Management Discussion and Analysis

22 Financial Section (Audited)
23 Financial Statements
I . Balance Sheet
II . Statement of Income and Retained Earnings
III. Statement of Changes in Net Assets
IV. Statement of Cash Distributions
V . Statement of Cash Flows

29 Notes to Financial Statements
48 Independent Auditor’s Report
49 Overview of the Investment Corporation and Asset Management Company
51 Unitholders Information

4Portfolio Management

Stable Financial BaseIn an effort to secure stable rental income, the Investment Corporation implements strategic leasing activities to suit the building and area characteristics
and other features of individual properties it owns, in coordination with property management companies centering on the Sekiwa Real Estate Group.

The Investment Corporation is promoting further reinforcement of its financial base through financial strategies such as reducing borrowing costs andlengthening borrowing periods, given the credibility of Sekisui House, Ltd.

Changes in Occupancy Ratio

Status of Financial Soundness

In the 21st fiscal period, focus was placed on leasing activities for residential properties that had been vacant for a long time on top of ordinaryleasing activities. Consequently, the occupancy ratio of the entire portfolio was 96.5% on average throughout the period and stood at 97.2% as ofthe end of the period (March 31, 2016), continuing to stay at high levels.

（％）
100

100.0

100.0

100.0

100.0

100.0

Ratio of fixed interest rates

96.4

96.0

95.7

96.0
95.8

96.4

96.4

96.8

96.2

96.3

96.7

97.2
97.0

End of Sept. 2015

End of Oct. 2015

End of Nov. 2015

20th FP

Residence

Retail property

End of Dec. 2015

End of Jan. 2016

End of Feb. 2016

Diversification status
by area
Diversification statusby property age
Diversification status
by walking distance to station

End of 21st FP (Mar. 31, 2016)
Residential portfolio (totaling 106 properties)

3.5％

As of June 30, 2016
Residential portfolio (totaling 110 properties)

Greater Tokyo

69.0％

71.2％

3.9％

Greater Tokyo

67.2％

71.2％

3.8％

67.4％

■ Less than 5 years ■ 5 years to less than 10 years ■ 10 years or more (Classified according to the property age with June 30, 2016 as the reference date (based on the acquisition price))

6.2％

36.4％

Averageproperty age

9.4 years

8.1％

37.2％

Averageproperty age

57.3％

9.3 years

10.4％

36.4％

Averageproperty age

54.7％

53.3％

9.2 years■ Within 3 minutes ■ More than 3 minutes to within 5 minutes ■ More than 5 minutes to within 10 minutes ■ More than 10 minutes (Classified according to the walking minutes from station for each property (based on the acquisition price))

10.0％

9.4％

31.5％

Within10-minute walk

29.6％

90.0％

■ Less than 30m2

■ 30m2 to less than 50m2

26.3％

0.7％
Average area
per unit

27.1％

39.6 ㎡

32.6％

9.1％

Within10-minute walk

29.0％

4.2 years

2.00

1.47 %

1.00

0

28.8％

Greater Tokyo

72.4％

years

2.3 years

3.1years

3.2 years

1.38 %

1.25 %

4.9 years

4.5 years

4.3 years 4.1years

4.5

3.0

1.20 %

1.09 %

1.04 %

1.01%

1.02 %

1.5■ Major Cities Nationwide (Classified according to the area where each property is located (based on the acquisition price))

28.8％

27.6％

4.1

End of the 21st period (March 31, 2016)

6.0（year）
Period-average borrowing cost rate (left axis)
Average remaining period of borrowing (right axis)(Reference) Status of the Residential Portfolio■ Greater Tokyo / Other Urban Areas

End of the 21st period (March 31, 2016)(Note 1) “Ratio of fixed interest rates” includes the interest rates of borrowings that have been practically fixed by concluding interest rate swap agreements, and “ratio of long-term borrowings” includes current portion of long-term loans
payable within one year. The ratios are rounded to the first decimal place.
(Note 2) “Average remaining period of borrowings” is the remaining period of interest-bearing debt to the repayment dates weighted average by the balance of interest-bearing debt, and is rounded down to the first decimal place.
The same follows hereafter.

End of Mar. 2016

21st FP■ Greater Tokyo / Major Urban Areas

Average remaining period of borrowings（％）3.00

Entire portfolio(Note) The occupancy ratio in the above graph indicates the ratio of total leased area to the total leasable area in each category for the properties of the corresponding category held by the Investment Corporation as of the endof each month from September 2015 to March 2016, rounded to the first decimal place.

End of 20th FP (Sept. 30, 2015)
Residential portfolio (totaling 104 properties)

93.1％

In the fiscal period under review, the Investment Corporation successfully borrowed long-term loans at spreads practically lower than those of theprevious rounds of borrowings, achieving a further decrease in the period-average borrowing cost rate.

90

Diversification status
by floor area

Ratio of long-term borrowings

Changes in Period-Average Borrowing Cost Rate and Average Remaining Period of Borrowings

Stable occupancy is maintained continuously

27.9％■ 50m2 to less than 100m2

90.6％

Within10-minute walk

30.2％

27.4％

32.8％

90.9％

30.7％

■ 100m2 or more (Classified according to the leasable residential units each residential unit)

23.9％

0.7％
Average area
per unit

45.9％
25.0％

37.9 ㎡

23.6％

0.6％
Average area
per unit

50.5％
25.2％

37.8 ㎡

50.6％(Note 1) “Average property age” is calculated by seeking the weighted average of the building age of each property (with June 30, 2016 set as the base date) with the investment ratio calculated based on the acquisition price, rounded down to the nearest first decimal place.
(Note 2) “Average area per unit” is calculated based on the total leasable residential units of owned properties and the total number of leasable residential units as of each point of time, rounded down to the nearest first decimal place.

5

87.9％

End of the 21st period (March 31, 2016)

96.7
95

100.0

100.0

The Investment Corporation is working to maintain the ratio of fixed interest rates, the ratio of long-term borrowings and the average remaining periodof borrowings at current levels from the perspective of financial soundness.

14th FP(Sept. 30, 2012)

15th FP(Mar. 31, 2013)

16th FP
17th FP(Sept. 30, 2013) (Mar. 31, 2014)

18th FP
19th FP(Sept. 30, 2014) (Mar. 31, 2015)

20th FP
21st FP(Sept. 30, 2015) (Mar. 31, 2016)

0(Note) “Period-average borrowing cost rate” is calculated by using the formula below and is rounded to the second decimal place:
Period-average borrowing cost rate = Period borrowing cost (annualized) / Balance of period-average interest-bearing debt
Borrowing cost = Interest expenses (excluding break funding cost) + borrowing related expenses + interest expenses on investment corporation bonds

Status of Bank Formation
The Investment Corporation has constructed the bank formation comprising 17 financial institutions centering on the 3 Japanese megabanks, based on thecredibility of Sekisui House, Ltd.
The borrowing status of the Investment Corporation as of March 31, 2016 is as follows.

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

Outstanding Balance(million yen)

Share
(%)

17,001

19.1

16,741

18.8

11,550

12.9

7,030

7.9

6,000

6.7

5,842

6.5

5,241
4,152
3,950
2,200

4.4
2.5

2,000
1,500

2.2

1,200

1.3

1,200
1,200

1.3

1,200

1,200
89,209

2.2
2.5

1.7
1.3
1.3
1.3
100.0

19.1

4.4

5.9
4.7

1.3
1.3
1.3
1.3

1.3
1.7

4.7
5.9

18.8

6.5
6.7
7.9

12.9
Unit: %

6

Sekisui House SI Residential Investment Corporation

Examples of Initiatives in CSR and Environmental Activities

Partial Amendments to the Asset Management Guidelines

Aiming to realize its basic principal of “providing high-quality residences through the J-REIT scheme” and “creating affluent and fulfilling
lifestyles,” the Investment Corporation conducts real estate investment management with due consideration given to the environment, society andgovernance, in accordance with the “Sustainability Vision” advocated by Sekisui House, Ltd. The Investment Corporation is conscious of its societal
responsibilities, and has established sustainability policy and objectives which it complies with and implements across the breadth of its operations. Major
examples of its initiatives are presented below.

The Asset Management Company made partial amendments to its asset management guidelines in accordance with the partial amendments made to the
Articles of Incorporation of the Investment Corporation and approved at the 7th General Meeting of Unitholders held on June 10, 2016.

21st fiscal period ended March 2016
Newly implemented at

6

Implemented at a total of■

21st fiscal period ended March 2016
Newly implemented atproperties

20 properties

Greenhouse gas emissions (cumulative total):
Expected decrease of approx.

369t annuallyunits

253 unitsComparison of air conditioning units with
“2 Stars” energy efficiency and those with
“4 Stars” energy efficiency

Expected decrease of approx.

■

91

Implemented at a total of

Electricity consumption (cumulative total):

740,907kwh annually

Intended to reduce electricity
consumption and greenhouse gas (CO2)emissions in exclusive areas

Management that considers
the environment and society
Realize a sustainable society■ Electricity consumption :Expected annual reduction of approx.
13% in electricity consumption per unit

■ Greenhouse gas emissions :Expected approx. 112kg annual reduction
in greenhouse gas emissions per unit

Provide high-quality residences
through the J-REIT scheme
Three properties newly
certified in April 2016

Continued participation in
GRESB environmental survey

Specific area

Allocation ratio (Note 3)[Reference]
Allocation ratio before change

Greater Tokyo/Major Urban Areas(Focused investment area)(1) Tokyo: 23 wards
Musashino-shi, Mitaka-shi and Koganei-shi(2) Kanagawa: Yokohama-shi and Kawasaki-shi

Approx. 70%

Approx. 70%

Greater Tokyo/Other Urban Areas(1) Tokyo areas (except islands) and
Kanagawa other than the above(2) Chiba and Saitama

Investment area category

Greater Tokyo

Intended to reduce electricity
consumption and greenhouse gas (CO2)emissions in common areas

Energy-saving conversion of air conditioners in exclusive areas•Add renewable energy generation facilities to specified assets alongside partial amendments of the Articles of Incorporation as changes to the scope of
specified assets have been made with legal revisions•Maintain allocation ratio of approximately 70% for “Greater Tokyo/Major Urban Areas,” the focused investment area and core area for the portfolio•Change allocation ratio of “Greater Tokyo/Other Urban Areas” and “Major Cities Nationwide” together to approximately 30% for greater flexibility ininvestment in areas other than “Greater Tokyo/Major Urban Areas”

Major Cities
Nationwide

LED light fixture replacement work in common areas

Essentials of Amendments to the Asset Management Guidelines

Together with Greater
Tokyo/Major Urban Areas
Approx. 80%

Approx. 30%

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

Other Major Cities Nationwide

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

10% or less for Other
Major Cities Nationwide

Approx. 20%
Up to roughly 10% for Other
Major Cities Nationwide(Note 1) “Areas within commuting distance” represent the peripheral areas from which it generally requires around 30 minutes to commute to the central parts of Sapporo-shi, Sendai-shi, Nagoya-shi, Kyoto-shi, Osaka-shi, Kobe-shi,
Hiroshima-shi and Fukuoka-shi.
(Note 2) “Government designated cities, etc. other than the above” represent cities in areas other than Greater Tokyo and that fall under the category of either government designated cities, core cities, special ordinance cities at the entry into
force or prefectural capitals in areas other than Major Urban Areas.
(Note 3) “Approx.” in the allocation ratio means ± 10%.
(Note 4) Retail properties owned as of June 30, 2016 have been excluded from the calculation of the above allocation ratio.

Change in Asset Management Fee System
The Investment Corporation submitted a proposal to partially amend the Articles of Incorporation, including changing the asset management fee system
for the Asset Management Company to one with greater linkage with unitholder’s interests, to its 7th General Meeting of Unitholders held on June 10,2016 for approval. As the proposal was approved, the new asset management fee system will be applied in the 23rd fiscal period ending March 2017 andthereafter.

After change

Current

Lowering of part linked to asset size
Certification rank

Acquired the highest “Green Star” rating in the 2015 Global Real
Estate Sustainability Benchmark (GRESB) environmental survey, theAssetmanagementfee (1)

Linkage with realestate appraisal
value, etc.

Change to asset management fee systememphasizing operating performanceof investment properties
Greater linkage with unitholder’s interest

first ever for a residential J-REIT, and was selected as “Sector Leader”（4 Stars）

Prime Maison YOKOHAMA NIHON-ODORICertification rank

Certification rank

（3 Stars）（2 Stars）

Prime Maison GINZA EAST

(ranked first) in Asia’s Residential Sector

Assetmanagementfee (2)

Classification

Esty Maison OJIMA

Linkage to NOI
Linkage with income
before income taxes

Raising of part linked to performance

Current asset management fee system
FormulaIncome before income taxes × Fee rate

3.0％

NOI × Fee rate

Asset management fee (2)Prime Maison GOTENYAMA EAST (4 Stars)
Prime Maison SHINAGAWA (4 Stars)

Acquisition/disposition fee

Transaction price × Fee rate

0.8％
（0.4%*）

Merger fee

ーー

GRESB environmental survey

FormulaAmount of total assets × Fee rate (annual rate)

Already certified in January 2015

DBJ Green Building Certification

7

Fee rate

Assetmanagementfee (1)

Asset
managementfee (2)

Asset management fee system after change

0.4％

Asset management fee (1) Real estate appraisal value, etc. × Fee rate (annual rate)■

Linkage to amountof total assets

Maximum fee rate
Section up to ¥200 billion
Section above ¥200 billion

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

0.22％
5.0％
0.8％
（0.4%*）
0.8％*The figure in parenthesis (0.4%) will be applied in cases of transactions with interested parties, etc.
(Note) “Amount of total assets” above refers to amount of the total assets as shown in the balance sheet of the preceding fiscal period of each operating period. Moreover, NOI refers to the amount in which the total expenses related to rent
business (excluding depreciation and loss on disposal of fixed asset is subtracted from the total rent revenue-real estate (including dividends for equity interest in silent partnership on real estate and real estate-backed securities as well as
similar revenue) calculated for each operating period.

8

Sekisui House SI Residential Investment Corporation

Portfolio Map
In order to mitigate the risks associated with unipolar concentration of the portfolio, including risks related to the local economy and earthquakes,
the Investment Corporation positions Greater Tokyo/Major Urban Areas as the focused investment area while conducting diversified investment inGreater Tokyo/Other Urban Areas and Major Cities Nationwide.
Greater Tokyo / Major Urban Areas

Major Cities Nationwide (Osaka City)
Residence-20 Esty Maison KYOBASHI
Residence-23 Esty Maison MINAMIHORIE
Residence-28 Esty Maison JOTO
Residence-29 Esty Maison TSUKAMOTO
Residence-41 Esty Maison NISHINAKAJIMA
Residence-59 Prime Maison YUHIGAOKA
Residence-60 Prime Maison KITATANABE
Residence-72 Esty Maison KAWARAMACHI
Residence-73 Esty Maison NISHITENMA
Residence-116 Esty Maison UEMACHIDAI (Acquired in 22nd FP)

Residence-1
Residence-3
Residence-4
Residence-5
Residence-6
Residence-8
Residence-10
Residence-12
Residence-14
Residence-15
Residence-16
Residence-17
Residence-19
Residence-21
Residence-22
Residence-24
Residence-25
Residence-26
Residence-27
Residence-30
Residence-31
Residence-33
Residence-34

Major Cities Nationwide (Fukuoka City)
Residence-35 Esty Maison TENJINHIGASHI I
Residence-36 Esty Maison TENJINHIGASHI II
Residence-46 Esty Maison HAKATAHIGASHI
Residence-47 Esty Maison KAMIGOFUKUResidence-55 MAST HAKATA
Residence-61 Prime Maison MOMOCHIHAMAResidence-67 Prime Maison TERIHA
Residence-93 Esty Maison YAKUIN
Residence-103 Prime Maison CENTRAL PARK

Esty Maison GINZA
Esty Maison AZABUNAGASAKA
Esty Maison EBISU II
Esty Maison EBISU
Esty Maison KANDA
Esty Maison KITASHINJUKU
Esty Maison ASAKUSA KOMAGATA
Esty Maison KAWASAKI
Esty Maison SHINKAWASAKI
Esty Maison YOKOHAMA
Esty Maison KAMEIDO
Esty Maison MEGURO
Esty Maison SUGAMO
Esty Maison MEGUROHONCHO
Esty Maison HAKURAKU
Esty Maison GOTANDA
Esty Maison OISENDAIZAKA
Esty Maison SHINAGAWA SEASIDE
Esty Maison MINAMIAZABU
Esty Maison KAWASAKI II
Esty Maison AZABUJUBAN
Esty Maison ITABASHIHONCHO
Esty Maison OIZUMIGAKUEN

Residence-39
Residence-42
Residence-43
Residence-44
Residence-45
Residence-48
Residence-53
Residence-54
Residence-56
Residence-57
Residence-62
Residence-63
Residence-64
Residence-69
Residence-70
Residence-71
Residence-74
Residence-75
Residence-76
Residence-77
Residence-78
Residence-79
Residence-80

Esty Maison HIGASHISHINAGAWA
Esty Maison ITABASHIKUYAKUSHOMAE
Esty Maison MUSASHIKOYAMA
Esty Maison SENDAGI
Esty Maison YOTSUYASAKAMACHI
Esty Maison SANGENJAYA
Esty Maison SANGENJAYA II
Esty Maison ITABASHI C6
Esty Maison KINSHICHO
Esty Maison MUSASHIKOGANEI
Esty Maison AKIHABARA
Esty Maison SASAZUKA
Prime Maison GINZA EAST
Esty Maison SENGOKU
Esty Maison DAIZAWA
Esty Maison TOGOSHI
Esty Maison SHIROKANEDAI
Esty Maison HIGASHISHINJUKU
Esty Maison MOTOAZABU
Esty Maison TORITSUDAIGAKU
Esty Maison MUSASHIKOYAMA II
Esty Maison NAKANO
Esty Maison SHINNAKANO

Residence-81 Esty Maison NAKANOFUJIMICHO
Residence-82 Esty Maison TETSUGAKUDO
Residence-83 Esty Maison KOENJI
Residence-84 Esty Maison OSHIAGE
Residence-85 Esty Maison AKABANE
Residence-86 Esty Maison OJI
Residence-87 Prime Maison WASEDA
Residence-88 Prime Maison HATCHOBORIResidence-89 Prime Maison JINBOCHO
Residence-90 Prime Maison GOTENYAMA EAST
Residence-91 MAST LIFE AKIHABARA
Residence-94 Esty Maison KINSHICHO II
Residence-95 Esty Maison OJIMA
Residence-98 Prime Maison MORISHITA
Residence-99 Prime Maison SHINAGAWA
Residence-104 MAST LIFE YAHIRO
Residence-105 Prime Maison EBISU
Residence-106 Esty Maison SHIBAURA
Residence-110 Esty Maison KOHOKU TSUNASHIMA
Residence-112 Prime Maison YOKOHAMA NIHON-ODORIResidence-114 Prime Maison SHIBUYA (Acquired in 22nd FP)
Residence-115 Prime Maison HATSUDAI (Acquired in 22nd FP)
b-town MINAMIAOYAMA
Retail-4

Greater Tokyo / Other Urban Areas

Residence-11
Residence-18
Residence-40
Residence-50
Residence-109
Residence-111

Esty Maison MACHIDA
Esty Maison YACHIYO MIDORIGAOKA
Esty Maison HACHIOJIMINAMINO
Prime Maison MUSASHINONOMORI
Esty Maison TSUTSUJIGAOKAMAST LIFE HINO

Major Cities Nationwide (Nagoya City)
Residence-51
Residence-52
Residence-58
Residence-65
Residence-66
Residence-68
Residence-92
Residence-96
Residence-97

9Prime Maison HIGASHISAKURA
Prime Maison KAYABAKOEN
Prime Maison GOKISO
Prime Maison TAKAMI
Prime Maison YADAMINAMI
Esty Maison HIGASHISHIRAKABE
Esty Maison AOIPrime Maison FUJIMIDAI
Esty Maison TSURUMAI

Major Cities Nationwide (Kyoto City, Sapporo City, Kobe City and other areas)

Residence-37
Residence-100
Residence-101
Residence-102
Residence-107
Residence-108
Residence-113
Residence-117
Retail-1

Esty Maison SHIJONISHINOTOIN
Prime Maison ODORI KOEN
Prime Maison MINAMI 2-JO
Prime Maison KAMOKAMOGAWA
Granmast KANAZAWA NISHIIZUMIGranmast UNOMORIKOBE Women’s Student Housing
Esty Maison KOBE-SANNOMIYA (Acquired in 22nd FP)
HAMAMATSU Plaza10

Sekisui House SI Residential Investment Corporation

Management Discussion and Analysis
Overview of Asset Management
1. Changes in Operating Results and Other Management Data
Fiscal Period

Unit

Accounting Period
Operating revenue

2. Asset Management Status for the 21st Fiscal Period

17th Fiscal Period 18th Fiscal Period 19th Fiscal Period 20th Fiscal Period 21st Fiscal Period(April 1, 2014 (October 1, 2014 (April 1, 2015 (October 1, 2015 (October 1, 2013 March 31, 2014) September 30, 2014) March 31, 2015) September 30, 2015) March 31, 2016)

mm yen

4,952

5,591

6,286

6,411

6,543

mm yen（4,917）（5,591）（6,134）（6,330）（6,332）mm yen

2,710

3,127

3,472

3,667

3,801

mm yen（2,233）（2,560）（2,835）（2,975）（3,065）

Operating income

mm yen

2,242

2,463

2,814

2,743

2,741

Ordinary income

mm yen

1,767

1,952

2,305

2,211

2,214

Rent revenue - real estate
Operating expenses
Expenses related to rent business

Net income(a)Total assets(b)(Period-on-period variation)(c)

Net assets(Period-on-period variation)
Unitholders' capitalmm yen

1,765

1,950

2,302

2,209

2,210

mm yen%156,878

176,892

194,035

195,280

198,290（+5.4）（+12.8）（+9.7）（+0.6）（+1.5）

mm yen70,05981,01091,227

91,213

91,263%（+0.1）（+15.6）（+12.6）（-0.0）（+0.1）

mm yen68,29479,05988,92588,92588,925Investment units issued

(d)

units

159,605

915,240

1,018,110

1,018,110

1,018,110

Net assets per unit(c)/(d)yen(Note 5) 87,791

88,51289,60589,59089,639Total cash distributions(e)

mm yen

1,765

1,950

2,224

2,160

2,163

Cash distribution per unit(e)/(d)yen

11,062

2,131

2,185

2,122

2,125

Earnings distribution per unit

yen

（11,062）（2,131）（2,185）（2,122）（2,125）Distribution in excess of earnings per unit

yen

（-）

（-）

（-）

（-）

（-）

%

1.2
（2.3）

1.2
（2.3）

1.2
（2.5）

1.1
（2.3）

1.1（2.2）

Ordinary income to total assets(Note 2)Return on unitholders’ equity(Note 2)

%

2.5
（5.1）

2.6
（5.2）

2.7
（5.4）

2.4
（4.8）

2.4（4.8）

Unitholders’ equity ratio(c)/(b)

%

44.7

45.8

47.0

46.7

46.0

（-2.3）

（1.1）

（1.2）

（-0.3）（-0.7）(Note 3)

%

100.0

99.9

96.6

97.7

97.8

(Note 4)

properties

95

99

107

110

108

318,602.26

357,494.91

399,249.82

400,210.45

368,622.60(Period-on-period variation)
Distribution payout ratio[Other reference information]
Number of investment properties
Total leasable aream

2

(Note 4)

Period-end occupancy ratio
Depreciation
Capital expenditures
Leasing NOI (net operating income)(Note 2)

%

97.5

97.1

97.4

96.7

97.2

mm yen

1,073

1,252

1,369

1,431

1,468

mm yen

86

68

153

97

293

mm yen

3,757

4,283

4,669

4,786

4,735

(Note 1) Consumption tax is not included in operating revenue, etc.
(Note 2) The indicators are calculated by using the following methods. In addition, annualized figures in accordance with the number of management days are provided in the parenthesis in parallel.
Ordinary income to total assets

Ordinary income / Average total assets
Average total assets = (Period-beginning total assets + Period-end total assets) / 2

Return on unitholders’ equity

Net income / Average net assets
Average net assets = (Period-beginning net assets + Period-end net assets) / 2

Leasing NOI

Leasing income for the fiscal period(Rent revenue-real estate – Expenses related to rent business) + Depreciation(Note 3) Distribution payout ratio is calculated by using the following method, and is rounded down to the nearest specified unit.
Cash distribution per unit (excluding distribution in excess of earnings per unit) / Net income per unit
For the 18th and 19th fiscal periods, however, the following method is employed as the Investment Corporation issued new investment units in the periods.
Total cash distributions / Net income(Note 4) Number of investment properties indicates the number of properties that are considered to be single units respectively in light of common sense. In addition, the period-end occupancy ratio indicates the ratio of the total leased area to the total leasablearea as of the account closing date.
(Note 5) The Investment Corporation implemented a 5-for-1 split of its investment units with March 31, 2014 and April 1, 2014 as the record date and the effective date, respectively. Accordingly, net assets per unit have been calculated on the assumption thatthe split of investment units was conducted at the beginning of the 17th fiscal period ended March 2014. Furthermore, net assets per units for the 17th fiscal period stands at 438,957 yen when it is calculated without assuming that the split ofinvestment units was conducted at the beginning of the 17th fiscal period.

(1) Brief History of the Investment Corporation
Sekisui House SI Residential Investment Corporation (the “Investment Corporation”) is an investment corporation sponsored by Sekisui House, Ltd. (“Sekisui House”), a
leading company in the housing industry, and Spring Investment Co., Ltd. (“Spring Investment”), an international fund manager, and has worked to establish a stable portfolio
primarily comprising residential properties.
The Investment Corporation listed on the Real Estate Investment Trust Securities Market of Tokyo Stock Exchange, Inc. on July 28, 2005. Subsequently, as Sekisui House andSpring Investment were selected as new sponsors replacing the former sponsor, they acquired the outstanding shares of the asset management company to which theInvestment Corporation entrusts the management of its assets on March 8, 2010, with 75% equity interest held by Sekisui House and 25% by Spring Investment. This firmly
established a collaboration system with the two companies serving as joint sponsors for the Investment Corporation and the asset management company.
Later, at the 6th General Meeting of Unitholders held on June 11, 2014, the Investment Corporation’s Articles of Incorporation was partially revised to remove retail properties,
which had previously been identified as a supplementary investment target, from its investment horizons and to solely invest in real estate related assets that are mainly used
(Note 1) as residences. At the same time, it was resolved to change the Investment Corporation’s trade name to Sekisui House SI Residential Investment Corporation in orderto strongly demonstrate the shift of its investment targets.
The Investment Corporation aims to become a leading company among REITs investing in residential properties by building a highly stable portfolio that is centered on thehigh-quality rental residential properties developed by the Sekisui House Group (Note 2) as well as by working to reinforce its financial base, in an effort to maximize theinterests of its unitholders.
(Note 1) “Mainly used” means that a majority of the total exclusive area of the relevant real estate-related asset is allocated for a specific use.
(Note 2) The Sekisui House Group refers to the group encompassing Sekisui House and its 205 subsidiaries and 23 affiliated companies (as of the end of January 2016).

(2) Investment Environment and Asset Management Results1) Operating Environment
During the 21st fiscal period, the Japanese economy remained on course for a modest recovery in light of a steady improvement in the employment and income
environments, although a certain weakness was observed in exports and production due to the impact of slowdown in emerging economies.
Under these circumstances, the Tokyo Stock Exchange (TSE) REIT Index remained solid at around 1,750 points through the end of 2015, given such factors as long-term
interest rates remaining at low levels, a series of capital increases through public offerings coming to a stop to improve the supply and demand situation, and the Bank ofJapan changing the maximum amount of its purchases of J-REIT investment units from within 5% to within 10% of the total amount of the units issued of respective REITs
in its supplementary measures for additional monetary easing. Although the figure plunged to the lower half of the 1,600 points level in January 2016 in the face of suchexternal factors as concerns about the slowdown of the Chinese economy and decreasing crude oil prices, it rebounded significantly to the 1,800 points level due to a drop in
long-term interest rates that was triggered by the introduction of a negative interest rate by the Bank of Japan announced on January 29. The figure has remained solid
thereafter amid the risk-averse attitude growing among investors globally.
As for the land price trend, the national average for residential land and commercial land combined took an upward turn for the first time in 8 years, according to thegovernment’s Land Price Survey as of January 1, 2016. Although residential land prices dropped slightly, the rate of decrease continued to decelerate, while commercial land
prices took an upward turn after leveling off. Presumably, this is a result of the market being bolstered by housing demand encouraged by the improved employment situationand housing mortgage tax reduction and other measures, and also reflects such factors as growing demand for stores and hotels due to an increase in foreign tourists.
By area, the average in the three major metropolitan areas (the Greater Tokyo, Osaka Area and Nagoya Area) indicates a small increase in the residential land price at a pacealmost comparable with the previous year and an increase in the commercial land price at a higher rate.
In regional areas, both the residential land and commercial land prices in core regional cities (Sapporo-shi, Sendai-shi, Hiroshima-shi and Fukuoka-shi) took an upward turn toshow an increase at a higher pace than in the three major metropolitan areas. Other parts of the regional areas also demonstrated a lower rate of price decrease.
In terms of the demand trend for rental residential properties, the number of single-person households centering on young people is increasing in Greater Tokyo and somemajor cities including government designated cities because of population inflow from other regions. In addition, there continue to be a decreased orientation for possessing
one’s own houses, primarily among young generations, due to changes of mind-sets such as turning away from buying their own homes as well as due to more diversified
lifestyles. Given these backgrounds, latent demand for rental residential properties remain solid, and rental condominiums featuring superior locations and quality enjoy stable
occupancy.
As for the supply trend for rental residential properties, construction starts of rental housing in April 2016 increased year-on-year for the 6 consecutive months, according to
the Statistics on Building Construction Starts (April 2016) by the Ministry of Land, Infrastructure, Transport and Tourism. However, as the figure continues to remain at a low
level, the supply and demand situation in the rental residential properties market is believed to largely remain in good shape.
Meanwhile, according to the Outlook for Economic Activity and Price (April 2016) by the Bank of Japan, consumer spending has remained solid against the backdrop of asteady improvement in the employment and income environments, although a somewhat weak note is observed in certain areas. In addition, demand for opening stores isstrong amid the number of foreign visitors to Japan hitting a record high. With announcements on new development projects and restarting of such projects being made inlarge numbers, the store market appears to remain in good shape as a whole. In accordance with this, rents for stores continue to show an upward trend, although being
somewhat tamed in some areas like Ginza and Shinjuku.

2) Asset Management Results
A. Measures for maximizing the interests of unitholders[Changes in the asset size]
The Investment Corporation started the 21st fiscal period with management of 110 properties it owned as of September 30, 2015, having total acquisition price of 191,020
million yen (excluding, however, miscellaneous acquisition related expenses, fixed property taxes, city planning taxes, consumption taxes and local consumption taxes; the same
follows hereafter). The Investment Corporation acquired a residential property in October 2015, another residential property in January 2016 and the other residential property in
March 2016 (total acquisition price of 11,260 million yen). On the other hand, it disposed four of its existing retail properties (Note) in November 2015 and a residential property

11

12

Sekisui House SI Residential Investment Corporationin January 2016 (total acquisition price of 8,390 million yen). As a result, the properties owned by the Investment Corporation as of the end of the fiscal period under review
totaled 108 properties (106 residential properties and 2 retail properties), with the total acquisition price amounting to 193,890 million yen (188,539 million yen for residential
properties and 5,350 million yen for retail properties).
(Note) Existing retail properties refer to real estate-related assets that are mainly used as retail facilities and that the Investment Corporation continuously holds. The same follows hereafter.

Going forward, the Investment Corporation will continue to further promote its initiatives on realizing a sustainable society, including measures to mitigate environmental
burdens, with an aim to achieve its basic principal of “providing high-quality residences through the J-REIT scheme” and “creating affluent and fulfilling lifestyles.”The table below indicates the properties acquired or disposed during the 21st fiscal period.

<Newly acquired properties>
Property No.

(3) Summary of Fund Procurement

Acquisition Price(million yen)

Acquisition Date

Shinmachi, Hino-shi, Tokyo

1,290

October 1, 2015

Property Name

Location

Residence-111

MAST LIFE HINO

Residence-112

Prime Maison YOKOHAMA NIHON-ODORI

Honcho, Naka-ku, Yokohama-shi, Kanagawa and other

4,270

January 29, 2016

Residence-113

KOBE Women’s Student Housing

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

5,700

March 1, 2016

Disposition Price(million yen)

Disposition Date

<Disposed properties>
Property No.
Residence-13

Property Name

In the 21st fiscal period, the Investment Corporation introduced energy-efficient air-conditioning units and LED lighting to its properties, which it had conducted fromtime to time, as environmental-friendly measures. In addition, looking to realization of a sustainable society, it reviewed and analyzed the environmental recognition andcertifications by external assessment that it has obtained to date and, based on the analysis results, investigated new initiatives intended to construct a partnership withtenants, including enlightenment activities on energy saving for tenants.

Location

Esty Maison IMAIKE

Imaike, Chikusa-ku, Nagoya-shi, Aichi

Retail-3

RINKU HAGURAZAKI Plaza

Tajiri-cho, Sennan-gun, Osaka

300

November 30, 2015

Retail-5

KOJIMA × BIC CAMERA Kamifukuoka store

Kamifukuoka, Fujimino-shi, Saitama

November 30, 2015

Retail-8

Joy Square YUGAWARA

Yugawara-machi, Ashigarashimo-gun, Kanagawa

Retail-9

Bell Plaza Shopping Center

Nakamaruko, Ueda-shi, Nagano

8,500(Note)

January 28, 2016

November 30, 2015
November 30, 2015

During the 21st fiscal period, the Investment Corporation newly borrowed 1,200 million yen in short-term loans payable (loan period: approximately 11 months) in October
2015, 4,100 million yen in long-term loans payable (loan period: approximately seven years and seven months) in January 2016 and 6,000 million yen in short-term loans
payable (loan period: approximately six months) in March 2016, in order to fund property acquisitions. On the other hand, the Investment Corporation made early repaymentof borrowings (8,200 million yen in total) in December 2015 by utilizing proceeds from dispositions of existing retail properties.
As a result of the above, the Investment Corporation had the balance of interest-bearing debts standing at 103,709 million yen (7,200 million yen in short-term loans payable,
82,009 million yen in long-term loans payable (including 12,300 million yen in current portion of long-term loans payable) and 14,500 million yen in investment corporation
bonds) as of March 31, 2016.
In addition, the Investment Corporation has been granted the following credit ratings as of June 30, 2016 in light of the stable financial base established through theseendeavors.
Credit Rating Agency

Issuer Rating

Japan Credit Rating Agency, Ltd. (JCR)

Long-term issuer rating
AA- (Stable)

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

Issuer rating
A+ (Stable)(Note) Individual disposition prices are not disclosed as no consent to disclosure has been obtained from the buyers.

[Enhancing a residential portfolio centering on the property pipelines with the Sekisui House Group](4) Summary of Business Results and Distributions

The Investment Corporation disposed four of its existing retail properties in November 2015 and a residential property, which was built many years ago and was
expected to generate more repair expenses and other costs in the future, in January 2016.

As a result of these management efforts, the Investment Corporation posted operating revenue of 6,543 million yen, operating income of 2,741 million yen after
deducting such operating expenses as outsourcing expenses, utilities expenses and asset management fees, ordinary income of 2,214 million yen and net income of
2,210 million yen in the 21st fiscal period.

In the fiscal period under review, the Investment Corporation also utilized the property pipelines of the Sekisui House Group to acquire a MAST Series property from
Sekiwa Real Estate, Ltd. in October 2015 and a Prime Maison Series property from Sekisui House in January 2016, while acquiring a student housing, its first investmentin this type of residential assets, through the proprietary acquisition routes of the asset management company.
Furthermore, in April 2016 after the 21st fiscal period was closed, the Investment Corporation acquired two Prime Maison Series properties from Sekisui House, and two
residential properties from Sekiwa Real Estate Kansai, Ltd. the first acquisition from the company, which it had held in recognition of their values. As a result of these
activities, the asset size of the Investment Corporation’s portfolio reached 200 billion yen in terms of the total acquisition price on June 30, 2016.
Through these endeavors to enhance the residential portfolio centering on the property pipelines with the Sekisui House Group, the Investment Corporation worked tomitigate the management risks in the future, successfully reinforcing the stability of the earning base of its portfolio even further.

Furthermore, the Investment Corporation decided to internally reserve part of the gain on sale of four of its existing retail properties it disposed in November 2015 and aresidential property it disposed in January 2016 as reserve for reduction entry by applying to the Special Measures in Case Land or Other Property is Acquired in
Advance in 2009 or 2010 under Article 66-2 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957; as amended) (the “Special Taxation MeasuresAct”). Pursuant to this policy, the Investment Corporation decided to distribute the entire amount of the unappropriated retained earnings after deducting 47 million yen
as the provision for reserve for reduction entry, which is within the scope of application to Article 66-2 of the Special Taxation Measures Act, with the aim of having the
maximum amount of profit distributions deducted as expenses based on application of the special provisions for taxation on investment corporations (Article 67-15 of
the Special Taxation Measures Act).
As a result, the cash distribution per unit came to 2,125 yen for the 21st fiscal period.

B. Implementation of Leasing Activities and Measures to Enhance Property Value
During the fiscal period, the Investment Corporation conducted leasing activities for its residential properties by paying attention to the trends in the surrounding rental
markets in accordance with the property locations, residential types and tenant classifications. At the same time, it took various measures aiming to enhance property
competitiveness. Specifically, the Investment Corporation exerted flexibility by modifying lease conditions to more proper ones for residential units with long-term
vacancies, for example, in order to achieve profitability as early as possible. For more competitive properties and residential units, it proactively raised rents upon tenant
replacement and contract renewals. These endeavors, on top of focusing on leasing of vacant parking lots, proved effective in enhancing the profitability of the portfolio.
As for measures aimed at maintaining and enhancing asset value, the Investment Corporation conducted large-scale repairs in a planned manner, based on the results ofdeterioration diagnosis surveys and other inputs, at two properties and renovated the entrance lobby of a property, in an effort to reinforce the appeal of its owned
properties. Moreover, as measures that are not only environmentally friendly but also helpful to reduce operational costs of properties, it not only continued to introduce
LED lighting to common areas, which it has conducted to date, but also sequentially installed LED lighting and highly energy-efficient air-conditioning units in exclusive
areas. These measures should contribute to improving tenant satisfaction. Consequently, the occupancy ratio of the entire residential properties stood at 97.0% as of theend of the 21st fiscal period.
As for the two retail properties the Investment Corporation owns as of the end of the 21st fiscal period, stable occupancy has been maintained from the beginning of the
fiscal period, with the occupancy ratio standing at 100.0% for both as of March 31, 2016.
As a result of these endeavors, the occupancy ratio of the entire portfolio was 97.2% as of the end of the fiscal period under review.
C. Initiatives on CSR and Realizing a Sustainable Society
The Investment Corporation established its environmental basic policy, sustainability policy and environmental targets in the 19th fiscal period ended March 2015. Basedon these policies, the Investment Corporation has cooperated with Sekisui House, which was the first in the housing industry to be recognized as an Eco-First Company
by the Ministry of the Environment, to promote initiatives for energy-saving and environmental awareness in response to the requirements of the times through suchmeasures as enhancing energy efficiency of its owned properties and acquiring environmentally friendly properties.

13

3. Future Management Policies and Vital Issues(1) Investment Environment
Looking ahead, the Japanese economy is expected to recover moderately, given the employment and income environments continuing to show an improvement as wellas various political measures proving effective, according to the Outlook for Economic Activity and Prices (April 2016) by the Bank of Japan. Domestic demand will
follow an upward trend as a virtuous cycle from income to spending will continue in both the household and corporate sectors. Exports are anticipated to remain
somewhat stagnant for some time but will subsequently rise gradually in the face of such factors as emerging economies starting to outgrow the slowdown. However,attention must continue to be paid to the risk of the Japanese economy being pushed downward by the business downswing in emerging Asian countries including China
and in countries exporting natural resources.
As for the fund procurement environment, long-term interest rates remain at an extremely low level or in the negative domain due to introduction of the negative interest
policy announced by the Bank of Japan in January 2016. For the J-REIT market, this allows expectations that rooms for reducing financing costs will expand and that
there will be an inflow of investment monies that have turned out to be difficult to manage under the negative interest rate policy.
In the real estate transaction market, investors still remain highly willing to invest, backed by the favorable fund procurement environment, and competition overacquisition continues to be overheated. Although the expected return level has already reached the lowest level before the global financial crisis and there is less room fora further decrease, it is assumed that there will be a further inflow of investment monies as a result of a decrease in the risk-free rate due to the introduction of anegative interest rate and an increase in the superiority of real estate as investment target. As such, real estate prices will presumably rise moderately or stay at a highlevel.
Based on this view, the Investment Corporation will conduct acquisitions and management of assets by carefully discerning the asset management environment in termsof the business conditions including the future impact of the negative interest rate environment, the supply and demand balance status and the orientations of domestic
and foreign investors.

14

Sekisui House SI Residential Investment Corporation(2) Management Policy and Vital Issues
A. External Growth Strategy
With an aim to realize maximum value for its unitholders, the Investment Corporation endeavors to build a portfolio that centers on high-quality rental residential
properties planned and developed by the Sekisui House Group, for which Sekisui House, the main sponsor, serves as the core company.
In this endeavor, the Investment Corporation positions Greater Tokyo / Major Urban Areas as the focused investment area as well as the core area of its property
portfolio. At the same time, in order to mitigate the risks associated with heavy concentration of the portfolio on Greater Tokyo such as regional economic risks andearthquake risks, the Investment Corporation will work to diversify investments to a certain degree as it investigates acquisitions of properties that allow expectations forstable rental demand, from among those located in Greater Tokyo / Other Urban Areas and in Major Cities Nationwide including Major Urban Areas where use of thenationwide networks of the Sekisui House Group is expected to prove effective as much as in Greater Tokyo. As for the residential types as investment targets, theInvestment Corporation will invest primarily in properties comprised mainly of the Single and Compact Type residences for which relatively high rental demand andprofitability can be expected, as well as in properties comprised mainly of the Family Type residences for which stable earnings can be expected, giving due consideration
to area characteristics. The Investment Corporation will also selectively invest in properties comprised mainly of the Large Type residences after carefully analyzing site
environments and such. Moreover, it will invest in student housing, company housing and serviced housing for the elderly, after making comprehensive and carefulanalyses.
In terms of the property acquisition routes, the Investment Corporation will focus on utilizing the Sekisui House Group’s ability to supply properties, while also using
property information provided by Spring Investment, the co-sponsor, and endeavoring to acquire properties from outside sources by collecting property information
through the proprietary networks of the asset management company. Even in the real estate market where prices are soaring, the Investment Corporation will acquire
properties that it considers to contribute to enhancing its profitability, in view of the areas and property characteristics, while working to keep the yields at proper levels.
By doing so, the Investment Corporation will aim to steadily achieve expansion of the asset size centering on high-quality rental residential properties.
As for existing retail properties it owns, the Investment Corporation will investigate selling them as a rule, while making efforts to achieve their stable management incooperation with Sekisui House. In addition, among the residential properties it owns, the Investment Corporation will investigate replacement of low-yielding propertiesor those that are built many years ago and expected to generate more repair expenses and other costs in the future, in an effort to enhance the quality of its portfolio.

As for the existing retail properties, the Investment Corporation will work to make appropriate facility improvements for the purpose of maintaining and enhancing
property competitiveness by keeping communications with the tenants on a daily basis so that it can grasp the operational status of the buildings and facilities, changes
in the competition environment and consumption trends in surrounding areas and other aspects as soon as possible. By doing so, the Investment Corporation endeavors
to achieve enhancement of the attractiveness and profitability of the facilities.

(3) Financial Strategy, etc.
For the loan-to-value ratio (LTV), which represents the ratio of the balance of borrowings, investment corporation bonds and interest-bearing lease and guarantee
deposits to the total of assets owned by the Investment Corporation, the Asset Management Guidelines of the asset management company sets the ceiling at 60%.
However, as the policy it has followed to date, the Investment Corporation makes it a basic rule to maintain LTV at a conservative level, with the lower half of the 50%
level as the target ceiling for the time being. As for future borrowings, the Investment Corporation will conduct fund procurement with a focus on long-term, fixed interest
rate debts with diversified repayment dates as a rule, as it has done to date, while continuing its endeavors on reducing procurement costs by paying full attention to the
optimum balance of fixed and floating interest rate debts.

4. Significant Events Occurring after Settling the 21st Fiscal Period
Not applicable.
(Reference Information)
A. New Asset Acquisitions
The Investment Corporation acquired the following four properties as of April 1, 2016.
Property No.

B. Internal Growth Strategy
The Investment Corporation will continue to implement various measures to enhance cash flows from its owned properties. For residential properties, it will conduct
large-scale repairs of common areas in a planned manner, taking into account the building age and characteristics of respective properties. At the same time, theInvestment Corporation will endeavor on branding of its investment properties by improving tenant satisfaction through continuous implementation of valueenhancement works for the exclusive areas as needed and enhancement of operational and administration service levels. In addition, it will work to reduce operationalcosts by switching electric power suppliers upon liberalization of electricity retail sales to those that are environmentally friendly, and by continuously replacing common
area lighting to LED lamps. Moreover, it will further deepen business coordination with the property management companies in order to focus on enhancing occupancy
ratios as well as increasing rents and obtaining key money upon concluding new contracts, while working to maintain and improve the contract renewal ratio andincrease rents upon renewing existing contracts with tenants. By doing so, the Investment Corporation will aim to enhance profitability.
For properties it acquires from the Sekisui House Group, the Investment Corporation will, in principle, consign property management services to the Sekiwa Real EstateGroup (Note) in charge of the relevant areas in which the said properties are located, in order to improve the occupancy ratio and enhance the operational andadministrative efficiency through the synergy effect with the Sekisui House Group. Moreover, the Investment Corporation has gradually unified the property managementcompanies involved in the existing residential properties to the Sekiwa Real Estate group. This is understood to have enabled the Investment Corporation to realize tenant
attraction and efficient administration by taking advantage of the Sekiwa Real Estate Group’s know-how on property management services, backed by the track record oflease management for approximately 565 thousand units throughout Japan (as of January 31, 2016), and its nationwide networks. Going forward, the Investment
Corporation will keep this policy in an aim to maintain and improve its medium- and long-term performance. Furthermore, in an effort to establish the brand, theInvestment Corporation is unifying the property name brands to “Esty Maison”, as a rule, for residential properties it acquired from other than the Sekisui House Group.
By doing so, and in combination with the “Prime Maison” brand for Sekisui House’s rental residential properties and the “MAST” series brand for the Sekiwa Real EstateGroup’s rental residential properties, the Investment Corporation will implement its comprehensive brand strategy to demonstrate the superior quality of its properties.
(Note) “Sekiwa Real Estate Group” represents a group of companies comprising, as the core, the Sekiwa Real Estate companies which are wholly-owned subsidiaries of Sekisui House and expanding nationwide presence in Japan, and their subsidiaries andaffiliates. Furthermore, the “Sekiwa Real Estate companies” refers to the seven companies of Sekiwa Real Estate, Ltd., Sekiwa Real Estate Kanto, Ltd., Sekiwa Real Estate Tohoku, Ltd., Sekiwa Real Estate Chubu, Ltd., Sekiwa Real Estate Kansai, Ltd.,
Sekiwa Real Estate Chugoku, Ltd. and Sekiwa Real Estate Kyushu, Ltd., which are wholly-owned subsidiaries of Sekisui House, and the core companies of the real estate division of the Sekisui House Group.

Brand Name

Prime Maison

Esty Maison

MAST Series

Prime Maison SHIBUYA

Shibuya, Shibuya-ku, Tokyo

2,190

April 1, 2016

Prime Maison HATSUDAI

Hatsudai, Shibuya-ku, Tokyo

2,700

April 1, 2016

Residence-116

Esty Maison UEMACHIDAI

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

950

April 1, 2016

Residence-117

Esty Maison KOBE-SANNOMIYA

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

970

April 1, 2016

(Note) The location is based on the indication in the registry.

B. Disposition of Owned Property
On June 30, 2016, the Investment Corporation decided to dispose part (measured area: 6.62m2) of the land (area in the registry: 704.82m2) of Esty Maison
HIGASHISHINJUKU. The Investment Corporation plans to conduct the disposition as of July 29, 2016.
Property No.

Property Name

Residence-75

Esty Maison HIGASHISHINJUKU (part of the land)

Explanation on brandHigh-quality urban rental condominiums
planned and developed by Sekisui House byutilizing its know-how or in which it invests
in recognition of the value

Proprietary Brand of theInvestment Corporation
As a rule, high-quality urban rental
condominiums the Investment Corporationacquired from outside the Sekisui HouseGroup

Brand of the Sekiwa Real
Estate GroupAs a rule, high-quality rental residential
properties planned and developed by the
Sekiwa Real Estate companies, which
belong to the Sekisui House Group, or thosein which they own in recognition of the value

Location(Note)

Disposition price(million yen)

Disposition Date(scheduled)

Shinjuku, Shinjuku-ku, Tokyo

23

July 29, 2016

(Note) The location is based on the indication on the registry.

C. Borrowing of Funds
The Investment Corporation borrowed funds as follows in order to allocate them for acquiring real estate trust beneficiary interests and for other purposes.
Drawdown Date

Loan amount(million yen)Aozora Bank, Ltd.

200

The Norinchukin Bank

300

Mizuho Bank, Ltd.

Interest Rate

Fixed/
Floating

0.45864%(Note)

Floating

Repayment Date

Repayment
MethodUse

CollateralLump-sum
repayment

Funds foracquisition ofreal estate
trust
beneficiaryinterests, etc.

Unsecured
andunguaranteed

1,100

Sumitomo Mitsui Banking Corporation

Brand of Sekisui House

Acquisition Date

Residence-115

Mizuho Trust & Banking Co., Ltd.
Logo type

Acquisition Price(million yen)

Residence-114

Lender<Summary of the Investment Corporation’s Major Brands>

Location(Note)

Property Name

500
April 1, 2016

1,100

Sumitomo Mitsui Trust Bank, Limited

450

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

700

The Yamaguchi Bank, Ltd.

100

Resona Bank, Limited

300

The Senshu Ikeda Bank, Ltd.

100

The Shizuoka Bank, Ltd.

100

The 77 Bank, Ltd.

100

Shinkin Central Bank
Development Bank of Japan Inc.

April 1, 2016

100
600

The Hiroshima Bank, Ltd.

100

The Bank of Fukuoka, Ltd.

200

Mitsubishi UFJ Trust and Banking Corporation

450

Total

6,500

February 29, 2024

0.50500%

Fixed(Note) The interest rate is applicable for the period from June 30, 2016 to July 29, 2016.

15

16

Sekisui House SI Residential Investment Corporation

5. Itemized Portfolio Assets
Property Name

The following table provides details of the assets (real estate and trust beneficiary interests in real estate as major entrusted property, etc.) owned by the Investment
Corporation as of March 31, 2016.

Property Name

17

Location (residence indication)

Form of Ownership

Total Leasable
Floor Area(m2)

Estimated Valueat End of Period(Note 1)(million yen)Book Value(million yen)

Residence-1

Esty Maison GINZA

3-11-19 Ginza, Chuo-ku, Tokyo

Trust beneficiary interests

5,515.43

6,090

4,760

Residence-3

Esty Maison AZABUNAGASAKA

5-13-12 Roppongi, Minato-ku, Tokyo

Trust beneficiary interests

2,019.10

1,690

1,623

Residence-4

Esty Maison EBISU II

4-13-1 Higashi, Shibuya-ku, Tokyo

Trust beneficiary interests

2,062.10

1,890

1,830

Residence-5

Esty Maison EBISU

1-13-4 Hiroo, Shibuya-ku, Tokyo

Trust beneficiary interests

781.02812

643

Residence-6

Esty Maison KANDA

2-3-4 Kandata-cho, Chiyoda-ku, Tokyo

Trust beneficiary interests

1,706.54

1,490

1,233

Residence-8

Esty Maison KITASHINJUKU

1-28-17 Kita-Shinjuku, Shinjuku-ku, Tokyo

Trust beneficiary interests

1,881.19

1,500

1,177

Residence-10

Esty Maison ASAKUSA KOMAGATA

1-10-9 Komagata, Taito-ku, Tokyo

Trust beneficiary interests

2,978.28

2,040

1,723

Residence-11

Esty Maison MACHIDA

2-1-17 Hara-machida, Machida-shi, Tokyo

Trust beneficiary interests

3,090.89

1,490

1,096

Residence-12

Esty Maison KAWASAKI

14-24 Ogawa-cho, Kawasaki-ku, Kawasaki-shi, Kanagawa

Trust beneficiary interests

3,741.01

2,350

1,844

Residence-14

Esty Maison SHINKAWASAKI

1-4 Furuichiba, Saiwai-ku, Kawasaki-shi, Kanagawa

Trust beneficiary interests

3,737.47

1,210

935

Residence-15

Esty Maison YOKOHAMA

3-33-1 Tsuruya-cho, Kanagawa-ku, Yokohama-shi, Kanagawa

Trust beneficiary interests

2,823.73

2,000

1,918

Residence-16

Esty Maison KAMEIDO

6-57-11 Kameido, Koto-ku, Tokyo

Trust beneficiary interests

2,279.21

1,490

1,433

Residence-17

Esty Maison MEGURO

2-10-12 Mita, Meguro-ku, Tokyo

Trust beneficiary interests

1,070.13

1,030

799

Residence-18

Esty Maison YACHIYO MIDORIGAOKA

1-2-8 Midorigaoka, Yachiyo-shi, Chiba

Trust beneficiary interests

4,815.26

1,150

1,181

Residence-19

Esty Maison SUGAMO

4-14-15 Sugamo, Toshima-ku, Tokyo

Trust beneficiary interests

2,619.17

1,580

1,462

Residence-20

Esty Maison KYOBASHI

2-7-10 Higashinoda-cho, Miyakojima-ku, Osaka-shi, Osaka

Trust beneficiary interests

4,613.04

2,830

2,335

Residence-21

Esty Maison MEGUROHONCHO

4-8-21 Megurohoncho, Meguro-ku, Tokyo

Trust beneficiary interests

1,656.02

1,090

1,125

Residence-22

Esty Maison HAKURAKU

1-18-19 Rokkakubashi, Kanagawa-ku, Yokohama-shi, Kanagawa Trust beneficiary interests

1,285.83

879

724

Residence-23

Esty Maison MINAMIHORIE

2-12-10 Minamihorie, Nishi-ku, Osaka-shi, Osaka

Trust beneficiary interests

1,804.48

1,020

955

Residence-24

Esty Maison GOTANDA

7-7-2 Nishi-Gotanda, Shinagawa-ku, Tokyo

Trust beneficiary interests

3,871.15

2,890

2,770

Residence-25

Esty Maison OISENDAIZAKA

5-9-10 Higashi-Oi, Shinagawa-ku, Tokyo

Trust beneficiary interests

2,979.85

2,590

2,242

Residence-26

Esty Maison SHINAGAWA SEASIDE

3-25-20 Higashi-Shinagawa, Shinagawa-ku, Tokyo, etc.

Trust beneficiary interests

2,602.30

2,050

1,994

Residence-27

Esty Maison MINAMIAZABU

1-10-8 Minamiazabu, Minato-ku, Tokyo

Trust beneficiary interests

1,082.12

1,220

1,204

Residence-28

Esty Maison JOTO

2-11-8 Noe, Joto-ku, Osaka-shi, Osaka

Trust beneficiary interests

2,065.92

957

986

Residence-29

Esty Maison TSUKAMOTO

2-13-5 Tsukamoto, Yodogawa-ku, Osaka-shi, Osaka

Trust beneficiary interests

2,321.04

1,050

1,127

Residence-30

Esty Maison KAWASAKI II

12-4 Ogawa-cho, Kawasaki-ku, Kawasaki-shi, Kanagawa

Trust beneficiary interests

2,824.86

1,950

1,738

Residence-31

Esty Maison AZABUJUBAN

1-11-1 Azabujuban, Minato-ku, Tokyo

Trust beneficiary interests

1,755.31

2,660

2,612

Residence-33

Esty Maison ITABASHIHONCHO

14-14 Yamato-cho, Itabashi-ku, Tokyo

Trust beneficiary interests

1,274.49925

921

Residence-34

Esty Maison OIZUMIGAKUEN

2-12-15 Higashi-Oizumi, Nerima-ku, Tokyo

Trust beneficiary interests

1,362.36

776

801

Residence-35

Esty Maison TENJINHIGASHI I

4-3 Susaki-machi, Hakata-ku, Fukuoka-shi, Fukuoka

Trust beneficiary interests

1,058.82

394

386

Residence-36

Esty Maison TENJINHIGASHI II

6-12 Susaki-machi, Hakata-ku, Fukuoka-shi, Fukuoka

Trust beneficiary interests

1,943.72

737

727

Residence-37

Esty Maison SHIJONISHINOTOIN

697 Myodenji-cho, Shijo-sagaru, Nishinotoin-dori, Shimogyo-ku, Kyoto-shi, Kyoto Trust beneficiary interests

2,261.28

1,190

1,299

Residence-39

Esty Maison HIGASHISHINAGAWA

1-10-1 Higashi-Shinagawa, Shinagawa-ku, Tokyo

Trust beneficiary interests

2,936.72

2,400

2,462

Residence-40

Esty Maison HACHIOJIMINAMINO

3-2-8 Nishikatakura, Hachioji-shi, Tokyo

Trust beneficiary interests

2,155.16865

894

Residence-41

Esty Maison NISHINAKAJIMA

2-8-21 Higashinakajima, Higashiyodogawa-ku, Osaka-shi, Osaka Trust beneficiary interests

3,643.42

1,900

1,946

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

2-46-11 Itabashi, Itabashi-ku, Tokyo

Trust beneficiary interests

3,915.81

2,490

2,502

Residence-43

Esty Maison MUSASHIKOYAMA

3-1-7 Ebara, Shinagawa-ku, Tokyo

Trust beneficiary interests

1,176.78

1,070

955

Residence-44

Esty Maison SENDAGI

3-49-1 Sendagi, Bunkyo-ku, Tokyo

Trust beneficiary interests

897.30682

718

Residence-45

Esty Maison YOTSUYASAKAMACHI

6-20 Yotsuyasakamachi, Shinjuku-ku, Tokyo

Trust beneficiary interests

2,453.17

2,060

2,207

Residence-46

Esty Maison HAKATAHIGASHI

7-2-80 Yoshizuka, Hakata-ku, Fukuoka-shi, Fukuoka

Trust beneficiary interests

9,106.08

2,470

2,049

Residence-47

Esty Maison KAMIGOFUKU

13-3 Kamigofukumachi, Hakata-ku, Fukuoka-shi, Fukuoka

Trust beneficiary interests

2,261.91859

821

Residence-48

Esty Maison SANGENJAYA

2-16-9 Sangenjaya, Setagaya-ku, Tokyo

Trust beneficiary interests

856.08859

843

Residence-50

Prime Maison MUSASHINONOMORI

5-15-3 Josuihoncho, Kodaira-shi, Tokyo

Trust beneficiary interests

3,924.58

1,890

1,499

Residence-51

Prime Maison HIGASHISAKURA

2-10-14 Higashisakura, Higashi-ku, Nagoya-shi, Aichi

Trust beneficiary interests

3,118.11

1,440

1,058

Residence-52

Prime Maison KAYABAKOEN

2-7-13 Kayaba, Chikusa-ku, Nagoya-shi, Aichi

Trust beneficiary interests

2,163.98

772

605

Residence-53

Esty Maison SANGENJAYA II

3-11-6 Shimouma, Setagaya-ku, Tokyo

Trust beneficiary interests

894.64

826

677

Residence-54

Esty Maison ITABASHI C6

32-16 Oyama-higashi-cho, Itabashi-ku, Tokyo

Trust beneficiary interests

4,036.66

2,480

2,140

Residence-55

MAST HAKATA

4-22-25 Hakata Ekimae, Hakata-ku, Fukuoka-shi, Fukuoka

Trust beneficiary interests

9,614.80

2,440

1,827

Residence-56

Esty Maison KINSHICHO

1-1-8 Kinshi, Sumida-ku, Tokyo

Trust beneficiary interests

1,611.54

1,240

1,046

Residence-57

Esty Maison MUSASHIKOGANEI

2-6-5 Honcho, Koganei-shi, Tokyo

Trust beneficiary interests

2,275.24

1,690

1,462

Residence-58

Prime Maison GOKISO

2-17-2 Ayuchitori, Showa-ku, Nagoya-shi, Aichi

Trust beneficiary interests

4,427.65

1,850

1,561

Residence-59

Prime Maison YUHIGAOKA

5-4-13 Ueshio, Tennoji-ku, Osaka-shi, Osaka

Trust beneficiary interests

2,040.35

916

771

Residence-60

Prime Maison KITATANABE

4-9-17 Kitatanabe, Higashisumiyoshi-ku, Osaka-shi, Osaka

Trust beneficiary interests

1,798.97

594

513

Residence-61

Prime Maison MOMOCHIHAMA

3-9-1 Momochihama, Sawara-ku Fukuoka-shi, Fukuoka

Trust beneficiary interests

7,514.76

1,970

1,794

Location (residence indication)

Form of Ownership

Total Leasable
Floor Area(m2)

Estimated Valueat End of Period(Note 1)(million yen)Book Value(million yen)

Residence-62

Esty Maison AKIHABARA

3-4-2 Ueno, Taito-ku, Tokyo

Trust beneficiary interests

2,324.65

1,900

1,517

Residence-63

Esty Maison SASAZUKA

1-61-17 Sasazuka, Shibuya-ku, Tokyo

Trust beneficiary interests

3,701.70

3,130

2,798

Residence-64

Prime Maison GINZA EAST

1-2-1 Tsukiji, Chuo-ku, Tokyo

Trust beneficiary interests

6,177.20

5,860

5,046

Residence-65

Prime Maison TAKAMI

2-6-7 Takami, Chikusa-ku, Nagoya-shi, Aichi

Trust beneficiary interests

2,016.79

987

874

Residence-66

Prime Maison YADAMINAMI

3-11-7 Yadaminami, Higashi-ku, Nagoya-shi, Aichi

Trust beneficiary interests

2,168.59

782

688

Residence-67

Prime Maison TERIHA

1-3-7 Kashiiteriha, Higashi-ku, Fukuoka-shi, Fukuoka

Trust beneficiary interests

6,728.20

1,250

1,069

Residence-68

Esty Maison HIGASHISHIRAKABE

3-9-36 Yoshino, Higashi-ku, Nagoya-shi, Aichi

Trust beneficiary interests

4,014.07

1,490

1,292

Residence-69

Esty Maison SENGOKU

4-6-17 Sengoku, Bunkyo-ku, Tokyo

Trust beneficiary interests

1,498.13

1,270

1,091

Residence-70

Esty Maison DAIZAWA

2-39-13 Daizawa, Setagaya-ku, Tokyo

Trust beneficiary interests

2,352.90

2,120

1,898

Residence-71

Esty Maison TOGOSHI

1-25-5 Togoshi, Shinagawa-ku, Tokyo

Trust beneficiary interests

1,943.17

1,650

1,381

Residence-72

Esty Maison KAWARAMACHI

3-2-10 Kawaramachi, Chuo-ku, Osaka-shi, Osaka

Trust beneficiary interests

3,486.48

1,860

1,595

Residence-73

Esty Maison NISHITENMA

5-15-3 Nishitenma, Kita-ku, Osaka-shi, Osaka

Trust beneficiary interests

2,877.90

1,620

1,401

Residence-74

Esty Maison SHIROKANEDAI

1-1-4 Kamiosaki, Shinagawa-ku, Tokyo

Trust beneficiary interests

2,675.11

2,250

1,972

Residence-75

Esty Maison HIGASHISHINJUKU

6-22-5 Shinjuku, Shinjuku-ku, Tokyo

Trust beneficiary interests

1,889.50

1,550

1,369

Residence-76

Esty Maison MOTOAZABU

3-6-6 Motoazabu, Minato-ku, Tokyo

Trust beneficiary interests

1,199.86

1,470

1,184

Residence-77

Esty Maison TORITSUDAIGAKU

2-7-17 Tairamachi, Meguro-ku, Tokyo

Trust beneficiary interests

1,035.78

816

739

Residence-78

Esty Maison MUSASHIKOYAMA II

3-11-4 Koyama, Shinagawa-ku, Tokyo

Trust beneficiary interests

1,073.59

976

849

Residence-79

Esty Maison NAKANO

5-48-2 Chuo, Nakano-ku, Tokyo

Trust beneficiary interests

2,023.72

1,760

1,549

Residence-80

Esty Maison SHINNAKANO

6-10-7 Honcho, Nakano-ku, Tokyo

Trust beneficiary interests

1,107.57

951

852

Residence-81

Esty Maison NAKANOFUJIMICHO

5-13-1 Yayoicho, Nakano-ku, Tokyo

Trust beneficiary interests

1,299.60

944

870

Residence-82

Esty Maison TETSUGAKUDO

2-12-15 Matsugaoka, Nakano-ku, Tokyo

Trust beneficiary interests

1,531.89

1,100

956

Residence-83

Esty Maison KOENJI

5-25-26 Koenjiminami, Suginami-ku, Tokyo

Trust beneficiary interests

1,527.52

1,100

968

Residence-84

Esty Maison OSHIAGE

5-11-5 Narihira, Sumida-ku, Tokyo

Trust beneficiary interests

3,180.90

2,330

1,956

Residence-85

Esty Maison AKABANE

2-39-5 Akabane, Kita-ku, Tokyo

Trust beneficiary interests

4,302.84

3,100

2,721

Residence-86

Esty Maison OJI

2-25-8 Oji, Kita-ku, Tokyo

Trust beneficiary interests

2,289.44

1,550

1,377

Residence-87

Prime Maison WASEDA

544-11 Waseda Tsurumaki-cho, Shinjuku-ku, Tokyo

Trust beneficiary interests

1,650.66

1,520

1,265

Residence-88

Prime Maison HATCHOBORI

4-11-9 Hatchobori, Chuo-ku, Tokyo

Trust beneficiary interests

1,382.32

1,390

1,144

Residence-89

Prime Maison JINBOCHO

1-50-9 Kandajinbo-cho, Chiyoda-ku, Tokyo

Trust beneficiary interests

1,819.90

1,840

1,623

Residence-90

Prime Maison GOTENYAMA EAST

6-6-33 Kitashinagawa, Shinagawa-ku, Tokyo

Trust beneficiary interests

2,512.91

2,640

2,116

Residence-91

MAST LIFE AKIHABARA

50-6 Kanda Sakumagashi, Chiyoda-ku, Tokyo

Trust beneficiary interests

803.36523

482

Residence-92

Esty Maison AOI

1-14-20 Aoi, Higashi-ku, Nagoya-shi, Aichi

Trust beneficiary interests

4,809.68

2,370

2,139

Residence-93

Esty Maison YAKUIN

1-13-8 Hirao, Chuo-ku, Fukuoka-shi, Fukuoka

Trust beneficiary interests

5,213.51

2,260

2,071

Residence-94

Esty Maison KINSHICHO II

3-5-19 Kotobashi, Sumida-ku, Tokyo

Trust beneficiary interests

9,469.65

7,910

6,796

Residence-95

Esty Maison OJIMA

5-32-5 Ojima, Koto-ku, Tokyo

Trust beneficiary interests

9,905.97

8,510

7,197

Residence-96

Prime Maison FUJIMIDAI

1-25 Fujimidai, Chigusa-ku, Nagoya-shi, Aichi

Trust beneficiary interests

5,704.63

1,970

1,783

Residence-97

Esty Maison TSURUMAI

2-20-1 Chiyoda, Naka-ku, Nagoya-shi, Aichi

Trust beneficiary interests

13,812.40

4,220

3,869

Residence-98

Prime Maison MORISHITA

3-6-4 Morishita, Koto-ku, Tokyo

Trust beneficiary interests

2,180.78

1,870

1,765

Residence-99

Prime Maison SHINAGAWA

1-3-16 Kita-Shinagawa, Shinagawa-ku, Tokyo

Trust beneficiary interests

2,107.88

1,850

1,719

Residence-100 Prime Maison ODORI KOEN

6-5-2 Odori-Nishi, Chuo-ku, Sapporo-shi, Hokkaido

Trust beneficiary interests

7,360.37

3,040

2,726

Residence-101 Prime Maison MINAMI 2-JO

9-1-1 Minami 2jo Nishi, Chuo-ku, Sapporo-shi, Hokkaido

Trust beneficiary interests

6,019.09

1,860

1,518

Residence-102 Prime Maison KAMOKAMOGAWA

1-6-1 Minami 7jo Nishi, Chuo-ku, Sapporo-shi, Hokkaido

Trust beneficiary interests

4,102.08

1,190

1,006

Residence-103 Prime Maison CENTRAL PARK

4-2-5 Kashii Teriha, Higashi-ku, Fukuoka-shi, Fukuoka

Trust beneficiary interests

10,268.74

2,283

2,314

Residence-104 MAST LIFE YAHIRO

5-30-10 Yahiro, Sumida-ku, Tokyo

Trust beneficiary interests

3,409.16

1,800

1,718

Residence-105 Prime Maison EBISU

1-22-19 Ebisu, Shibuya-ku, Tokyo

Trust beneficiary interests

3,010.66

4,170

3,660

Residence-106 Esty Maison SHIBAURA

2-8-3 Shibaura, Minato-ku, Tokyo

Trust beneficiary interests

3,795.82

2,780

2,896

Residence-107 Granmast KANAZAWA NISHIIZUMI

2-155-1 Nishiizumi, Kanazawa-shi, Ishikawa

Trust beneficiary interests

4,634.50

1,050

1,059

Residence-108 Granmast UNOMORI

1-6-7 Unomori, Yokkaichi-shi, Mie

Trust beneficiary interests

2,280.00

786

780

Residence-109 Esty Maison TSUTSUJIGAOKA

1-14-19 Nishitsutsujigaoka, Chofu-shi, Tokyo, etc.

Trust beneficiary interests

1,849.70

911

921

Residence-110 Esty Maison KOHOKU TSUNASHIMA

8-45-25 Shin-yoshida Higashi, Kohoku-ku, Yokohama-shi, Kanagawa, etc.

Trust beneficiary interests

6,867.48

2,731

2,868

Residence-111 MAST LIFE HINO

1-19-3 Shinmachi, Hino-shi, Tokyo

1,356

Trust beneficiary interests

2,827.55

1,340

Residence-112 Prime Maison YOKOHAMA NIHON-ODORI 1-4 Honcho, Naka-ku, Yokohama-shi, Kanagawa, etc.

Trust beneficiary interests

5,461.13

4,700

4,468

Residence-113 KOBE Women’s Student Housing

Trust beneficiary interests

15,341.68

5,720

6,248

353,735.54

203,833

183,523

14,117.13

2,562

3,679

769.93

1,170

1,498

Other real estate in trust (Retail property) subtotal

14,887.06

3,732

5,177

Total

368,622.60

207,565

188,701

7-1-6 Koyocho Naka, Higashinada-ku, Kobe-shi, Hyogo
Residence subtotal

Retail-1

HAMAMATSU Plaza (Note 2)1020-1 Kaminishi-cho, Higashi-ku, Hamamatsu-shi, Shizuoka, etc. Trust beneficiary interests

Retail-4

b-town MINAMIAOYAMA

3-6-7 Minamiaoyama, Minato-ku, Tokyo

Trust beneficiary interests(Note 1) The “Estimated Value at End of Period” indicates the appraisal value by real estate appraisers with March 31, 2016 as the date of appraisal.
(Note 2) The real estate in trust is quasi-co-owned, and the figure represents the value obtained by multiplying the “leasable floor area” of the facility by 49%, which is the quasi-co-ownership interest of the Investment Corporation.

18

Sekisui House SI Residential Investment Corporation

6. Changes in Rental Business Results

20th Fiscal Period (Apr. 1, 2015 – Sept. 30, 2015)

The following table provides changes in rental business results for each property in which the Investment Corporation has invested.
20th Fiscal Period (Apr. 1, 2015 – Sept. 30, 2015)
Property Name

Property Name

21st Fiscal Period (Oct. 1, 2015 – Mar. 31, 2016)

Rent Revenue
throughout
Period(million yen)

Ratio to Total
Rent
Revenues(%)

Occupancy
Number of
Tenants at End Ratio at End of
Periodof Period(Note 2) (%)(Note 1)

Rent Revenue
throughout
Period(million yen)

Ratio to Total
Rent
Revenues(%)

Residence-63

Esty Maison SASAZUKA

Rent Revenue
throughout
Period(million yen)

21st Fiscal Period (Oct. 1, 2015 – Mar. 31, 2016)

Ratio to Total
Rent
Revenues(%)

Occupancy
Number of
Tenants at End Ratio at End of
Periodof Period(Note 2) (%)(Note 1)

Rent Revenue
throughout
Period(million yen)

Ratio to Total
Rent
Revenues
(%)

1

88.2

86

1.4

1

96.3

86

1.4

Residence-64 Prime Maison GINZA EAST

1

96.3

162

2.6

1

95.1

164

2.6

Residence-65 Prime Maison TAKAMI

1

89.3

31

0.5

1

89.4

31

0.5

Residence-66 Prime Maison YADAMINAMI

1

95.7

27

0.4

1

100.0

28

0.5

Esty Maison GINZA

1

97.6

173

2.7

1

95.2

168

2.7

Residence-67 Prime Maison TERIHA

1

100.0

51

0.8

1

100.0

51

0.8

Residence-3

Esty Maison AZABUNAGASAKA

1

98.0

46

0.7

1

91.4

50

0.8

Residence-68 Esty Maison HIGASHISHIRAKABE

1

100.0

47

0.7

1

100.0

47

0.8

Residence-4

Esty Maison EBISU II

1

83.8

50

0.8

1

97.8

54

0.9

Residence-69 Esty Maison SENGOKU

1

98.4

35

0.6

1

98.4

36

0.6

Residence-5

Esty Maison EBISU

1

96.1

24

0.4

1

93.5

23

0.4

Residence-70 Esty Maison DAIZAWA

1

95.4

56

0.9

1

92.1

57

0.9

Residence-6

Esty Maison KANDA

1

93.2

44

0.7

1

98.7

45

0.7

Residence-71 Esty Maison TOGOSHI

1

100.0

49

0.8

1

98.9

49

0.8

Residence-8

Esty Maison KITASHINJUKU

1

98.1

46

0.7

1

97.4

45

0.7

Residence-72 Esty Maison KAWARAMACHI

1

94.5

60

1.0

1

94.9

59

0.9

Residence-10

Esty Maison ASAKUSA KOMAGATA

1

95.6

64

1.0

1

96.4

65

1.0

Residence-73 Esty Maison NISHITENMA

1

95.5

52

0.8

1

95.8

52

0.8

Residence-11

Esty Maison MACHIDA

1

95.8

53

0.8

1

96.4

52

0.8

Residence-74 Esty Maison SHIROKANEDAI

1

95.8

60

1.0

1

100.0

63

1.0

Residence-12

Esty Maison KAWASAKI

1

94.0

75

1.2

1

99.3

75

1.2

Residence-75 Esty Maison HIGASHISHINJUKU

1

97.9

44

0.7

1

100.0

46

0.7

Residence-13

Esty Maison IMAIKE

1

91.4

14

0.2

-

-

9

0.1

Residence-76 Esty Maison MOTOAZABU

1

100.0

41

0.6

1

100.0

41

0.7

Residence-14

Esty Maison SHINKAWASAKI

1

100.0

32

0.5

1

100.0

32

0.5

Residence-77 Esty Maison TORITSUDAIGAKU

1

87.1

22

0.4

1

96.0

24

0.4

Residence-15

Esty Maison YOKOHAMA

1

100.0

65

1.0

1

100.0

74

1.2

Residence-78 Esty Maison MUSASHIKOYAMA II

1

100.0

30

0.5

1

97.8

29

0.5

Residence-16

Esty Maison KAMEIDO

1

89.6

51

0.8

1

95.9

52

0.8

Residence-79 Esty Maison NAKANO

1

95.2

50

0.8

1

98.9

51

0.8

Residence-17

Esty Maison MEGURO

1

97.5

30

0.5

1

97.5

31

0.5

Residence-80 Esty Maison SHINNAKANO

1

98.0

28

0.4

1

91.9

29

0.5

Residence-18

Esty Maison YACHIYO MIDORIGAOKA

1

91.4

43

0.7

1

96.9

43

0.7

Residence-81 Esty Maison NAKANOFUJIMICHO

1

90.8

26

0.4

1

87.0

27

0.4

Residence-19

Esty Maison SUGAMO

1

92.5

47

0.7

1

100.0

46

0.7

Residence-82 Esty Maison TETSUGAKUDO

1

90.0

27

0.4

1

100.0

32

0.5

Residence-20

Esty Maison KYOBASHI

1

93.9

84

1.3

1

96.1

90

1.4

Residence-83 Esty Maison KOENJI

1

96.6

33

0.5

1

95.4

31

0.5

Residence-21

Esty Maison MEGUROHONCHO

1

89.8

32

0.5

1

93.4

32

0.5

Residence-84 Esty Maison OSHIAGE

1

98.4

67

1.1

1

96.8

68

1.1

Residence-22

Esty Maison HAKURAKU

1

92.9

30

0.5

1

98.3

31

0.5

Residence-85 Esty Maison AKABANE

1

100.0

93

1.5

1

91.0

91

1.4

Residence-23

Esty Maison MINAMIHORIE

1

95.4

34

0.5

1

100.0

34

0.5

Residence-86 Esty Maison OJI

1

94.4

45

0.7

1

96.5

46

0.7

Residence-24

Esty Maison GOTANDA

1

91.3

90

1.4

1

93.5

91

1.4

Residence-87 Prime Maison WASEDA

1

98.5

43

0.7

1

94.5

42

0.7

Residence-88 Prime Maison HATCHOBORI

1

96.9

37

0.6

1

100.0

39

0.6

Residence-89 Prime Maison JINBOCHO

1

100.0

53

0.8

1

97.3

51

0.8

Residence-90 Prime Maison GOTENYAMA EAST

1

95.3

76

1.2

1

95.7

73

1.2

Residence-91 MAST LIFE AKIHABARA

1

100.0

15

0.2

1

100.0

15

0.2

Residence-92 Esty Maison AOI

1

93.1

71

1.1

1

95.7

75

1.2

Residence-93 Esty Maison YAKUIN

1

96.9

72

1.1

1

97.4

74

1.2

Residence-94 Esty Maison KINSHICHO II

1

96.5

214

3.4

1

97.4

217

3.4

Residence-95 Esty Maison OJIMA

1

98.9

238

3.8

1

96.2

236

3.7

Residence-96 Prime Maison FUJIMIDAI

1

92.4

67

1.1

1

95.5

69

1.1

Residence-97 Esty Maison TSURUMAI

1

100.0

155

2.5

1

100.0

155

2.4

Residence-98 Prime Maison MORISHITA

1

97.7

57

0.9

1

98.9

61

1.0

Residence-99 Prime Maison SHINAGAWA

1

96.0

54

0.9

1

96.9

56

0.9

Residence-100 Prime Maison ODORI KOEN

1

90.9

108

1.7

1

90.2

109

1.7

Residence-101 Prime Maison MINAMI 2-JO

1

100.0

64

1.0

1

99.1

67

1.1

Residence-102 Prime Maison KAMOKAMOGAWA

1

97.4

45

0.7

1

98.2

45

0.7

Residence-103 Prime Maison CENTRAL PARK

1

94.3

77

1.2

1

97.3

84

1.3

Residence-104 MAST LIFE YAHIRO

1

100.0

56

0.9

1

100.0

56

0.9

Residence

Residence-1

Residence-25

Esty Maison OISENDAIZAKA

1

99.2

78

1.2

1

98.7

78

1.2

Residence-26

Esty Maison SHINAGAWA SEASIDE

1

91.1

63

1.0

1

95.3

60

1.0

Residence-27

Esty Maison MINAMIAZABU

1

98.1

35

0.6

1

98.1

35

0.6

Residence-28

Esty Maison JOTO

1

93.6

32

0.5

1

97.0

32

0.5

Residence-29

Esty Maison TSUKAMOTO

1

95.8

39

0.6

1

97.9

39

0.6

Residence-30

Esty Maison KAWASAKI II

1

93.5

61

1.0

1

97.7

61

1.0

Residence-31

Esty Maison AZABUJUBAN

1

92.6

66

1.0

1

96.8

63

1.0

Residence-33

Esty Maison ITABASHIHONCHO

1

89.2

27

0.4

1

95.4

28

0.4

Residence-34

Esty Maison OIZUMIGAKUEN

1

93.2

24

0.4

1

98.3

26

0.4

Residence-35

Esty Maison TENJINHIGASHI I

1

93.5

15

0.2

1

100.0

15

0.2

Residence-36

Esty Maison TENJINHIGASHI II

1

95.1

28

0.4

1

100.0

28

0.4

Residence-37

Esty Maison SHIJONISHINOTOIN

1

95.6

40

0.6

1

92.0

40

0.6

Residence-39

Esty Maison HIGASHISHINAGAWA

1

92.3

68

1.1

1

88.1

69

1.1

Residence-40

Esty Maison HACHIOJIMINAMINO

1

95.3

33

0.5

1

96.5

32

0.5

Residence-41

Esty Maison NISHINAKAJIMA

1

93.0

63

1.0

1

93.2

64

1.0

Residence-42

Esty Maison ITABASHIKUYAKUSHOMAE

1

95.1

76

1.2

1

96.8

76

1.2

Residence-43

Esty Maison MUSASHIKOYAMA

1

96.0

31

0.5

1

96.4

31

0.5

Residence-105 Prime Maison EBISU

1

99.2

106

1.7

1

95.2

106

1.7

Residence-44

Esty Maison SENDAGI

1

95.8

21

0.3

1

93.1

23

0.4

Residence-106 Esty Maison SHIBAURA

1

91.6

77

1.2

1

94.4

79

1.3

Residence-45

Esty Maison YOTSUYASAKAMACHI

1

96.7

58

0.9

1

95.3

58

0.9

Residence-107 Granmast KANAZAWA NISHIIZUMI

1

100.0

40

0.6

1

100.0

41

0.6

Residence-46

Esty Maison HAKATAHIGASHI

1

94.7

84

1.3

1

95.6

84

1.3

Residence-108 Granmast UNOMORI

1

100.0

26

0.4

1

100.0

26

0.4

Residence-47

Esty Maison KAMIGOFUKU

1

92.5

28

0.4

1

98.5

28

0.4

Residence-109 Esty Maison TSUTSUJIGAOKA

1

92.3

19

0.3

1

94.1

29

0.5

Residence-48

Esty Maison SANGENJAYA

1

100.0

23

0.4

1

100.0

24

0.4

Residence-110 Esty Maison KOHOKU TSUNASHIMA

1

100.0

36

0.6

1

100.0

79

1.3

Residence-50

Prime Maison MUSASHINONOMORI

1

96.4

62

1.0

1

96.2

63

1.0

Residence-111 MAST LIFE HINO

-

-

-

-

1

95.8

49

0.8

Residence-51

Prime Maison HIGASHISAKURA

1

95.8

51

0.8

1

96.3

52

0.8

Residence-112 Prime Maison YOKOHAMA NIHON-ODORI

-

-

-

-

1

94.5

46

0.7

Residence-52

Prime Maison KAYABAKOEN

1

92.4

28

0.4

1

96.1

28

0.4

Residence-113 KOBE Women’s Student Housing

-

-

-

-

1

100.0

36

0.6

Residence-53

Esty Maison SANGENJAYA II

1

91.2

23

0.4

1

97.0

23

0.4

104

96.0

5,855

92.5

106

97.0

6,108

96.5

Residence-54

Esty Maison ITABASHI C6

1

91.1

77

1.2

1

96.6

76

1.2

Residence-55

MAST HAKATA

1

100.0

93

1.5

1

100.0

93

1.5

Residence-56

Esty Maison KINSHICHO

1

97.2

35

0.6

1

100.0

35

0.6

Residence-57

Esty Maison MUSASHIKOGANEI

1

97.1

51

0.8

1

96.1

53

0.8

Residence-58

Prime Maison GOKISO

1

96.7

64

1.0

1

96.7

65

1.0

Residence-59

Prime Maison YUHIGAOKA

1

100.0

31

0.5

1

100.0

30

0.5

Residence-60

Prime Maison KITATANABE

1

91.4

21

0.3

1

95.5

21

0.3

Residence-61

Prime Maison MOMOCHIHAMA

1

100.0

69

1.1

1

100.0

69

1.1

Residence-62

Esty Maison AKIHABARA

1

97.5

56

0.9

1

96.2

57

0.9

Residence subtotal

Other Real Estate in Trust (Retail property)

Residence

Use Property No.

Occupancy
Number of
Tenants at End Ratio at End of
Periodof Period(Note 2) (%)(Note 1)

Use Property No.

Occupancy
Number of
Tenants at End Ratio at End of
Periodof Period(Note 2) (%)(Note 1)Retail-1

HAMAMATSU Plaza

4

100.0

90

1.4

4

100.0

84

1.3

Retail-3

RINKU HAGURAZAKI Plaza

2

100.0

151

2.4

-

-

49

0.8

Retail-4

b-town MINAMIAOYAMA

1

100.0

33

0.5

1

100.0

33

0.5

Retail-5

KOJIMA × BIC CAMERA Kamifukuoka store

1

100.0

40

0.6

-

-

13

0.2

Retail-7

b-toss IKEBUKURO

-

-

23

0.4

-

-

-

-

Retail-8

Joy Square YUGAWARA

1

100.0

79

1.3

-

-

25

0.4

Retail-9

Bell Plaza Shopping Center

1

100.0

54

0.9

-

-

17

0.3

Other real estate in trust (Retail property) subtotal

10

100.0

474

7.5

5

100.0

223

3.5

114

96.7

6,330

100.0

111

97.2

6,332

100.0

Total

(Note 1) The “Number of Tenants” indicates the number of lessees (including master-lease companies) that are in direct lease agreement with the trustees for each asset already acquired as of the end of fiscal period. Furthermore, the “Master-lease
Company” represents the lessee that has concluded a lease agreement for the entire building with the Investment Corporation or the trustee for the purpose of subleasing the property to third parties.
(Note 2) Of the properties that are subleased by the lessees to sublessees, for those from which the Investment Corporation receives rents that may vary depending on the leasing status to the sublessees, the indicated occupancy ratio is based on theoccupancy status of the sublessees (the ratio of the leased floor area to the leasable floor area at the end of the relevant calculation period).

19

20

Sekisui House SI Residential Investment Corporation

7. Capital Expenditures in the 21st Fiscal Period
The following are the overview of works that fall under the category of the capital expenditures that the Investment Corporation conducted in real estate in trustin the 21st fiscal period. In addition, the capital expenditure for the fiscal period under review totaled 293 million yen. Combining this with the 225 million yen in
repair expenses, which were classified as expenses for the fiscal period, the Investment Corporation conducted construction of 519 million yen.
Real Estate Properties, etc. Name (Location)

PurposeExpenditures(million yen)

PeriodEsty Maison ASAKUSA KOMAGATA(Taito-ku, Tokyo)

Large-scale renovation

From: November 2015
To: March 2016

67

HAMAMATSU Plaza(Hamamatsu-shi, Shizuoka)

Installation of regulating reservoir and drain
passage

From: December 2015
To: March 2016

59

Esty Maison SHIBAURA(Minato-ku, Tokyo)

Large-scale renovation

From: November 2015
To: March 2016

55

Prime Maison TERIHA and other 5 properties Installation of LEDs for the lighting equipment of(Fukuoka-shi, Fukuoka and others)common areas

From: February 2016
To: March 2016

22

Esty Maison TSURUMAI(Nagoya-shi, Aichi)

From: October 2015
To: March 2016

14

Renovation of exclusive areas

Financial Section (Audited)

Others

74
293

Total

8. Transactions with Interested Parties, Etc.
(1) Transaction Status

Contents

Financial Statements
Balance Sheet
Statement of Income and Retained Earnings
Statement of Changes in Net Assets
Statement of Cash Distributions
Statement of Cash Flows
Notes to Financial Statements
Independent Auditor’s Report

Transaction Amount, Etc.

Category
Total Amount

Purchase Amount, Etc.

Sale Amount, Etc.

11,260,000 thousand yen

8,800,000 thousand yen

4,270,000 thousand yen (37.9%)- thousand yen (-%)

1,290,000 thousand yen (11.5%)- thousand yen (-%)

5,560,000 thousand yen (49.4%)- thousand yen (-%)

Breakdown of Transactions with Interested Parties, Etc.
Sekisui House Ltd.
Sekiwa Real Estate Ltd.
Total

23
25
26
27
28
29
48

(2) Amount of Fees, Etc.

Category

Property Management Fees

Brokerage Fees

Total Fees, Etc.
(A) (thousand yen)

448,409

154,821

Breakdown of Transactions with Interested Parties, Etc.
Paid Party

Paid Amount(B) (thousand yen)

Ratio to Total Amount(B/A) (%)

Sekiwa Real Estate Ltd.

224,816

50.1

Sekiwa Real Estate Chubu, Ltd.

52,970

11.8

Sekiwa Real Estate Kansai, Ltd.

25,220

5.6

Sekiwa Real Estate Kyushu, Ltd.

17,060

3.8

Sekiwa Kanri Kansai Co., Ltd.

3,936

0.9

Sekiwa Real Estate Ltd.

91,48059.1

Sekiwa Real Estate Chubu, Ltd.

6,177

4.0

Sekiwa Real Estate Kansai, Ltd.

6,204

4.0

Sekiwa Real Estate Kyushu, Ltd.

2,108

1.4

(Note) Interested parties, etc. refers to the interested parties of the asset management company and is designated in Article 123 of the Enforcement Order of the Act on Investment Trusts and Investment Corporations and Article 26-1-27 of the regulation
on management reports in investment trusts and investment corporations of the Investment Trusts Association, Japan.

21

22Sekisui House SI Residential Investment Corporation

Financial Statements(1) Balance Sheet(Thousand yen)
20th Fiscal Period(As of September 30, 2015)
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Deferred tax assets

162,50956

129,092
238

Other
Allowance for doubtful accounts

2,272(1,092)

10,882(4,503)

8,406,145

8,733,823

Buildings in trust
Accumulated depreciation

94,630,254(12,698,031)

Buildings in trust, net

81,932,222

Structures in trust
Accumulated depreciation

760,950(181,940)

Structures in trust, net

579,009

101,392,020

Current portion of long-term loans payable
Accounts payable – other

6,350,000
562,861

12,300,000
638,446

Accrued expenses
Income taxes payable

55,361
1,476

54,0793,798

Accrued consumption taxes
Advances received

38,632
290,336

17,913
237,827

5,851

12,322

12,211,025

20,801,174

14,500,000
75,109,500

14,500,000
69,709,500

Tenant leasehold and security deposits in trust

2,247,305

2,016,256

ሺ193,509)

Total non-current liabilities

91,856,805

86,225,756

104,067,831

107,026,930

88,925,149

88,925,149

77,988

127,423

878,502684,992

1,325,998

1,420,357

171,783

207,186(62,591)
109,192

Non-current liabilities
Investment corporation bonds
Long-term loans payable

87,694,821

1,926,908

Tools, furniture and fixtures in trust, net

ሺ506,550)
ሺ71,023)

136,163

Land in trust

101,906,410

98,617,010

Total property, plant and equipment

185,852,834

188,553,346

Intangible assets
Leasehold rights in trust
Trademark rights
Other

150,019511
201

148,001
293
162

Total intangible assets

150,732

148,456

Investments and other assets
Lease and guarantee deposits

242,672

242,672

Long-term prepaid expenses
Other

370,621130,382

367,336
138,969

Total investments and other assets

336,786
7,200,000

ሺ13,697,199)

1,769,631(443,633)

Accumulated depreciation

Total non-current assets

256,505
4,650,000

Total current liabilities

Property, plant and equipment

Tools, furniture and fixtures in trust

Operating accounts payable
Short-term loans payable

Other

Non-current assets

Machinery and equipment in trust, net

21st Fiscal Period(As of March 31, 2016)

Current liabilities
3,428,890
5,016,055
153,167

Machinery and equipment in trust
Accumulated depreciation

20th Fiscal Period(As of September 30, 2015)
Liabilities

3,141,338
4,969,752
131,308

Total current assets(Thousand yen)

21st Fiscal Period(As of March 31, 2016)

743,675

748,977

186,747,242

189,450,780

74,833
52,69967,28638,195

Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Surplus
Voluntary retained earnings
Reserve for reduction entry
Total voluntary retained earnings

77,988

127,423

Unappropriated retained earnings

2,209,951

2,210,581

Total surplus

2,287,939

2,338,004

91,213,089

91,263,154

Total unitholders’ equity
Total net assets
Total liabilities and net assets

91,213,089

91,263,154

195,280,920

198,290,085

See accompanying “Notes to the Financial Statements”.

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

23

127,532

105,482

195,280,920

198,290,085

24Sekisui House SI Residential Investment Corporation(2) Statement of Income and Retained Earnings(3) Statement of Changes in Net Assets(Thousand yen)
21st Fiscal Period(October 1, 2015 –March 31, 2016)

20th Fiscal Period(April 1, 2015 –September 30, 2015)

20th fiscal period (from April 1, 2015 to September 30, 2015)(Thousand yen)
Unitholders’ equity
SurplusOperating revenue
Rent revenue - real estate

6,330,724

6,332,700

81,031

210,4036,411,756

6,543,103

2,975,490
458,937
15,9003,065,906
471,120
15,66636,2693,600
1,040
176,719

35,447
3,600
3,638
205,900

3,667,959

3,801,279

2,743,797

2,741,823

760
254

830
288

15
2,500

-

31

-

3,562

1,119

Interest expenses
Interest expenses on investment corporation

389,72156,677

382,82156,269bonds
Amortization of investment corporation bondissuance costs

7,546

7,546

Borrowing related expenses
Amortization of investment unit issuance costs
Other

67,364
14,503
109

67,453
14,503108

Total non-operating expenses

535,922528,703

Ordinary income

2,211,437

2,214,239

Income before income taxes

Gain on sales of real estate properties
Total operating revenue

Unitholders’capitalOperating expenses
Expenses related to rent business
Asset management fee
Asset custody fee
Administrative service fees
Directors’ compensations
Provision of allowance for doubtful accounts
Other operating expenses
Total operating expenses
Operating income
Non-operating income
Interest income
Reversal of distributions payable
Interest on tax refund
Compensation income
Other
Total non-operating income

Balance as ofApril 1, 2015
Changes of items during
the fiscal period
Provision for reserve
for reduction entry
Distribution fromsurplus88,925,149

Voluntary retained
earnings

Unappropria
ted retained
Reserve
Total
forvoluntary earnings
reduction retainedentry
earnings

2,211,437

2,214,239

1,630
76

3,925
(181)

Total income taxes

1,706

3,744

2,209,731

2,210,494

Net income
Retained earnings brought forward

220

86

Unappropriated retained earnings

2,209,951

2,210,581

See accompanying “Notes to the Financial Statements”.

25

Total Net
Assets-2,302,778

2,302,778

91,227,928

91,227,928

77,98877,988(77,988)---(2,224,570)(2,224,570)(2,224,570) (2,224,570)

2,209,731

2,209,731

2,209,731

2,209,731-

77,98877,988(92,827)(14,839)(14,839)(14,839)

88,925,149

77,98877,9882,209,951

2,287,939

91,213,089

91,213,089

21st fiscal period (from October 1, 2015 to March 31, 2016)(Thousand yen)
Unitholders’ equity
Surplus

Non-operating expenses

Income taxes - current
Income taxes - deferred

Totalunitholders’equity-Net Income
Total changes of items
during the fiscal period
Balance as of
September 30, 2015

Total
surplus

Unitholders’capitalBalance as of
October 1, 2015
Changes of items during
the fiscal period
Provision for reserve
for reduction entry
Distribution fromsurplus88,925,149

Voluntary retained
earnings

Unappropria
ted retained
Reserve
Total
forvoluntary earnings
reduction retainedentry
earnings

Total Net
Assets77,98877,9882,209,951

2,287,939

91,213,089

91,213,089

49,43549,435

ሺ49,435)---Net Income
Total changes of items
during the fiscal period
Balance as ofMarch 31, 2016

Total
surplusTotal
unitholders’equity(2,160,429) (2,160,429)

ሺ2,160,429)

2,210,494

ሺ2,160,429)

2,210,494

2,210,494

2,210,494-

49,43549,435629

50,06550,06550,06588,925,149

127,423

127,423

2,210,581

2,338,004

91,263,154

91,263,154

See accompanying “Notes to the Financial Statements”.

26

Sekisui House SI Residential Investment Corporation(4) Statement of Cash Distributions(5) Statement of Cash Flows

20th Fiscal Period(April 1, 2015 – September 30, 2015)

21st Fiscal Period(October 1, 2015 – March 31, 2016)

I. Unappropriated retained earnings

2,209,951,548 yen

2,210,581,192 yen

II. Cash distributions

2,160,429,420 yen

2,163,483,750 yen(2,122 yen)

(2,125 yen)

Provision for reserve for reduction
entry

49,435,695 yen

47,097,442 yen

IV. Retained earnings carried forward

86,433 yen

0 yen

As provided in Article 34-1-2 of its
Articlesof
Incorporation,
theInvestment Corporation makes it a

As provided in Article 34-1-2 of its
Articlesof
Incorporation,
theInvestment Corporation makes it abasic policy to make cash distributions
in excess of the amount equivalent to
90% of the distributable income
amount as stipulated in Article 67-15 of
the Act on Special Measures

basic policy to make cash distributions
in excess of the amount equivalent to
90% of the distributable income
amount as stipulated in Article 67-15 of
the Act on Special Measures

Concerning Taxation. Following thisConcerning Taxation. Following thispolicy, and in consideration of the factthat individual unitholders must
calculate the capital gains or losses forcash distributions in excess ofpolicy, and in consideration of the factthat individual unitholders must
calculate the capital gains or losses forcash distributions in excess ofearnings

earnings

Item(Cash distributions per unit)
III. Voluntary retained earnings

Method for calculating cash
distributions

when

the

Investment

when

the

Investment

Corporation distributes cash in excessof earnings as stipulated in Article
34-1-4 of its Articles of Incorporation,
the Investment Corporation distributed

Corporation distributes cash in excessof earnings as stipulated in Article
34-1-4 of its Articles of Incorporation,
the Investment Corporation distributed

2,160,429,420 yen, which is the entire

2,163,483,750 yen, which is the entire

amount of the unappropriated retained
earnings after deducting the provision
for reserve for reduction entry, asamount of the unappropriated retained
earnings after deducting the provision
for reserve for reduction entry, as

stipulated in Article 66-2 of the Act on
SpecialMeasures
Concerning
Taxation, and excluding the fractions

stipulated in Article 66-2 of the Act on
SpecialMeasures
Concerning
Taxation.

less than one yen per investment unit.

(Thousand yen)
20th Fiscal Period(April 1, 2015 –September 30, 2015)

21st Fiscal Period(October 1, 2015 –March 31, 2016)

Cash flows from operating activities
Income before income taxes
Depreciation
Amortization of investment corporation bond issuance

2,211,437
1,431,514

2,214,239
1,468,539

7,546

7,546

14,503

14,503

(872)
(760)

3,411
ሺ830)

costs
Amortization of investment unit issuance costs
Increase (decrease) in allowance for doubtful accounts
Interest income
Interest expenses
Decrease (increase) in operating accounts receivable
Decrease (increase) in prepaid expenses
Decrease (increase) in consumption taxes receivable
Increase (decrease) in operating accounts payable
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease due to sale of property, plant and equipment

446,398
45,924(27,728)
39,852(96,361)
49,596
38,632
3,657
3,050,207

in trust

439,091
ሺ21,858)
27,88822,17517,026
ሺ20,719)
ሺ52,508)8,240,718

Decrease (increase) in long-term prepaid expenses

51,685

8,814

Other, net(9,412)

Subtotal

7,255,821

12,365,609

Interest income received

760(449,127)

ሺ2,429)830
ሺ440,372)

Interest expenses paid
Income taxes paid
Net cash provided by operating activities(2,699)(1,603)6,804,754

11,924,463(5,888,720)

ሺ12,290,967)

Cash flows from investing activities
Purchase of property, plant and equipment in trust
Proceeds from tenant leasehold and security deposits

175,051

in trust
Repayments of tenant leasehold and security deposits(313,570)

in trust
Decrease (increase) in investments and other assets,(12,234)

225,239

ሺ456,288)(8,587)net
Net cash used in investing activities(6,039,473)(12,530,603)

1,800,000(1,000,000)
2,800,000(2,100,000)(2,223,959)

7,200,000(4,650,000)
4,100,000
ሺ3,550,000)(2,160,005)

Cash flows from financing activities
Proceeds from short-term loans payable
Repayments of short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Dividends paid
Net cash provided by financing activities(723,959)

939,994

Net increase (decrease) in cash and cash equivalents

41,321

333,854

Cash and cash equivalents at the beginning of period

8,069,769

8,111,090

Cash and cash equivalents at the end of period

8,111,090

8,444,945

See accompanying “Notes to the Financial Statements”.

27

28

Sekisui House SI Residential Investment Corporation

Notes to Financial Statements
1. Organization
Sekisui House SI Residential Investment Corporation (the “Investment Corporation”) is a Japanese real estate
investment corporation established in April 2005 under the Act on Investment Trusts and Investment
Corporations (the “Investment Trusts Act”) and listed on the Tokyo Stock Exchange in July 2005. Since March
2010, it has been sponsored by Sekisui House, Ltd., a leading company in the housing industry, and Spring
Investment Co., Ltd., an international fund manager, and has worked to establish a stable portfolio primarily
comprising residential properties. In June 2014, the Investment Corporation changed its name to the present
one to demonstrate its new strategy of solely investing in real properties that are mainly used as residences
while removing retail properties, which had previously been identified as a supplementary investment target,from its investment horizons. The Investment Corporation is externally managed by a licensed asset
management company, Sekisui House SI Asset Management, Ltd.

2. Basis of Presentation
The Investment Corporation maintains its accounting records and prepares its financial statements inaccordance with accounting principles generally accepted in Japan (“Japanese GAAP”), including provisions
set forth in the Financial Instruments and Exchange Act, the Investment Trusts Act, the Companies Act and therelated regulations, which are different in certain respects as to the application and disclosure requirements ofInternational Financial Reporting Standards.
The accompanying financial statements are a translation of the financial statements of the Investment
Corporation, which were prepared in accordance with Japanese GAAP and were presented in its Securities
Report filed with the Kanto Local Finance Bureau. In preparing the accompanying financial statements, certain
reclassifications and modifications have been made to the financial statements issued domestically in order topresent them in a format more familiar to readers outside Japan. In addition, the notes to financial statements
include certain information which might not be required under Japanese GAAP but is presented herein as
additional information.
The Investment Corporation’s fiscal period is a six-month period, which ends at the end of March and
September of each year. The Investment Corporation does not prepare consolidated financial statements as it
has no subsidiaries.
Unless otherwise specified, amounts have been rounded down to the nearest thousand yen in theaccompanying financial statements and the notes thereto. As a result, the total shown in the financial
statements and notes thereto do not necessarily agree with the sum of the individual account balances.

3. Summary of Significant Accounting Policies
1. Depreciation method for
non-current assets

2. Accounting for deferredassets29(1) Property, plant and equipment
Depreciation is calculated using the straight-line method.
The estimated useful lives of major property, plant and equipment are as
follows:
Buildings in trust3 – 66 years
Structures in trust3 – 50 years
Machinery and equipment in trust3 – 29 years
Tools, furniture and fixtures in trust2 – 15 years(2) Intangible assets
Intangible assets are amortized utilizing the straight-line method.
Leasehold rights in trust are amortized on a straight-line basis over theremaining life of each contract.
(1) Investment corporation bond issuance costs
Investment corporation bond issuance costs are amortized utilizing thestraight-line method over the redemption periods.
(2) Investment unit issuance costs
Investment unit issuance costs are amortized utilizing the straight-line
method (over 3 years).

3. Standards for recording
allowance

Allowance for doubtful accounts
For allowance for doubtful accounts against possible losses arising fromdefault on receivables, uncollectable amount is estimated and recorded
by investigating collectability on a case-by-case examination for doubtful
and other specific receivables.
4. Standards for recording
Accounting treatment of property taxes, etc.
Property taxes, city planning taxes and depreciable asset taxes
revenues and expenses(“property taxes, etc.”) assessed for the real estate owned by theInvestment Corporation are charged as expenses at an amountattributable to each fiscal period as expenses related to rent business.
Property taxes etc. that the Investment Corporation pays to the seller inconnection with acquisition of real estate (including trust beneficiaryinterests in real estate as entrusted property) as they are deemed to be
attributable to the Investment Corporation are included in theacquisition cost of the acquired real estate, instead of expenses.
Property taxes, etc. capitalized as a part of the acquisition cost
amounted to 25,707 thousand yen for the 20th fiscal period and 29,241
thousand yen for the 21st fiscal period, respectively.
5. Method of hedge accounting (1) Method of hedge accounting
Special accounting is applied for interest rate swap transactions.
(2) Hedging instruments and hedged items
Hedging instrument: interest rate swap transactions
Hedged items: interest expenses on loans payable(3) Hedging policy
Based on its basic policy for risk management, the Investment
Corporation utilizes derivative transactions in order to hedge risks
designated in its Articles of Incorporation.
(4) Method for assessing the effectiveness of hedging
Assessment of the effectiveness of hedging is omitted as requirements
are satisfied for special accounting for interest rate swap transactions.
6. Scope of funds (cash and
The funds (cash and cash equivalents) in the statements of cash flows
cash equivalents) in theconsist of cash on hand and cash in trust; deposits that can be withdrawn atstatement of cash flows
any time and deposits in trust; and short-term investments with a maturity of 3
months or less from the date of acquisition, which are readily convertible tocash and bear only an insignificant risk of value fluctuation.
7. Other significant items(1) Accounting methods for trust beneficiary interests in real estate, etc. as
fundamental to preparing
entrusted property
the financial statements
Regarding trust beneficiary interests in real estate, etc. as entrusted
property, all asset and liability accounts of the entrusted properties aswell as all revenue and expense accounts generated by the entrusted
properties are recorded in relevant accounts on the balance sheet andstatement of income and retained earnings.
Furthermore, the following accounts are considered material and thusstated separately in the balance sheet related to entrusted properties
from the relevant accounts.
1) Cash and deposits in trust2) Buildings in trust, structures in trust, machinery and equipment intrust, tools, furniture and fixtures in trust and land in trust3) Leasehold rights in trust4) Tenant leasehold and security deposits in trust(2) Accounting for consumption taxes
National and local consumption taxes are excluded from the transaction
amounts. Non-deductible consumption taxes for acquisition of assets areincluded in the acquisition cost of each asset.

30

Sekisui House SI Residential Investment Corporation

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

4. Note to Balance Sheet(Thousand yen)

Minimum total net assets designated in Article 67-4 of the Investment Trusts Act
20th Fiscal Period(As of September 30, 2015)

21st Fiscal Period(As of March 31, 2016)
50,000Esty Maison IMAIKE(Thousand yen)

Revenue from sales of real estate
Cost of real estate sold
Other sales expenses

50,000RINKU HAGURAZAKI Plaza, KOJIMAx BIC CAMERA Kamifukuoka store,
Joy Square YUGAWARA and Bell
Plaza Shopping Center
Revenue from sales of real estate
Cost of real estate sold
Other sales expenses

Breakdown of real estate rental revenues and expenses

A. Real estate rental revenues(Thousand yen)
21st Fiscal Period(October 1, 2015 –March 31, 2016)

Rent revenue - real estate
Rents

22,1868,500,000
7,975,267
336,515

8,311,783
188,216

Gain on sales of real estate properties

6. Notes to Statement of Changes in Net Assets

6,141,793

6,120,483

188,931212,216

6,330,724

6,332,700

Outsourcing expenses

572,913604,056

Utilities expenses

114,778

92,107

Insurance expenses

7,148

7,334

Repair expenses

171,157

225,891

7. Notes to Statement of Cash Flows

Property and other taxes

379,071371,609

Reconciliation of the Cash and cash equivalents at the end of period in the statement of cash flows with thecorresponding accounts on the balance sheet

Other revenue
Total real estate rental revenue
B. Real estate rental expenses
Expenses related to rent business

Trust fees

46,37345,297

Other

253,043251,204

1,431,003

1,468,403

2,975,490

3,065,906

Depreciation
Total real estate rental expenses
C. Real estate rental revenues andexpenses (A – B)

3,355,234

3,266,794

Breakdown of gain on sales of real estate properties(Thousand yen)
RINKU HAGURAZAKI Plaza (landsection for which Kojima Co., Ltd. was
the lessee)
Revenue from sales of real estate
Cost of real estate sold
Other sales expenses
Gain on sales of real estate properties

Other sales expenses
Gain on sales of real estate properties

Total number of authorized investment
units and total number of investment units
issued21st Fiscal Period(October 1, 2015 –March 31, 2016)

Total number of authorized investment units

10,000,000 units

10,000,000 units

Total number of investment units issued

1,018,110 units

1,018,110 units(Thousand yen)
21st Fiscal Period(October 1, 2015 –March 31, 2016)

20th Fiscal Period(April 1, 2015 –September 30, 2015)
Cash and deposits

3,141,338

3,428,890

Cash and deposits in trust

4,969,752

5,016,055

Cash and cash equivalents

8,111,090

8,444,945

20th Fiscal Period(As of September 30, 2015)
24,588(Thousand yen)
21st Fiscal Period(As of March 31, 2016)
24,648Operating lease transactions as lessee
Future lease payable equivalents

Due within one year
1,150,000
1,081,515
10,762

1,092,277
57,722

Due after one year

889,266

879,112

Total

913,854903,760

Due within one year

20th Fiscal Period(As of September 30, 2015)
1,592,239(Thousand yen)
21st Fiscal Period(As of March 31, 2016)
1,875,009

Due after one year

2,665,308

6,126,026

Total

4,257,547

8,001,035

Operating lease transactions as lessor
Future lease receivable equivalents

b-toss IKEBUKURO
Revenue from sales of real estate
Cost of real estate sold20th Fiscal Period(April 1, 2015 –September 30, 2015)

8. Lease Transactions

20th Fiscal Period (from April 1, 2015 to September 30, 2015)

31

277,813Gain on sales of real estate properties

5. Notes to Statement of Income and Retained Earnings

20th Fiscal Period(April 1, 2015 –September 30, 2015)

300,000
265,338
12,4752,050,000
1,968,522
58,1682,026,691
23,30832

Sekisui House SI Residential Investment Corporation

9. Financial Instruments

20th Fiscal Period (As of September 30, 2015)
Book Value Recordedon the Balance Sheet

1. Matters Concerning Status of Financial Instruments(1) Policy on Handling Financial Instruments
The Investment Corporation raises necessary funds (through additional issuance of investment units,
borrowings and issuance of investment corporation bonds) in light of its financial plans and surplus fundmanagement plans. With regard to surplus fund management, the Investment Corporation focuses onsafety and liquidity, and manages them as interest-bearing ordinary bank deposits or short-term time
deposits in order to avoid market risks as much as possible. As for derivative transactions, the Investment
Corporation may use them to hedge against interest rate fluctuation risks, and will not conduct any
speculative transactions.
(2) Description of Financial Instruments and Associated Risks, and Risk Management Structure
Operating accounts receivable are exposed to credit risks of customers. In order to mitigate such risks, theInvestment Corporation works to select tenants by taking into account the tenants’ credibility and has
established a management system for controlling the status of rent payment.
Lease and guarantee deposits from rental properties are exposed to credit risks of the companies to dobusiness with. In order to mitigate such risks, the Investment Corporation works to periodically grasp thefinancial conditions, etc. of such companies.
The possibility, conditions and subsequent burden of interest payments for borrowings and issuance ofinvestment corporation bonds are impacted by the interest rate situations and other factors. Thus, there is
no guarantee that the Investment Corporation can successfully make borrowings or issue investment
corporation bonds at a time when and under the conditions that it prefers. In addition, if borrowings are
made at floating interest rates, interest payments may increase due to later fluctuations in the interest
rates. Depending on the lending attitude of financial institutions, new borrowings may not be possible or
the Investment Corporation may have to borrow funds under disadvantageous conditions in terms ofinterest rates, collateral provision and financial covenants, etc.
Concerning the market risks (interest rate fluctuation risk, etc.) related to the above-mentioned borrowings
and investment corporation bonds, the Investment Corporation works to mitigate them in accordance with
the Derivative Transactions Handling and Risk Management Regulations, an internal rule designated by
the Asset Management Company.
Moreover, for the management of liquidity risk related to fund raising (risk of failing to execute repaymenton the repayment dates), the department in charge at the Asset Management Company prepares andupdates cash flow plans in a timely manner based on reports from its respective departments. The liquidity
risk is also managed by such measures as maintaining liquidity on hand at a certain level.
(3) Supplementary Explanation on Matters Concerning Fair Value, etc. of Financial Instruments
The fair value of financial instruments, aside from values based on market price, include values based onreasonable calculations when there is no market price. Certain variable factors are adopted in calculating
those values, and there may be cases where the values will vary when different assumptions are adopted.
As for the contract value and other conditions of derivative transactions indicated in “2. Matters Concerning
Fair Value, Etc. of Financial Instruments”, the value itself is not an indicator showing the market risks
related to such transactions.
2. Matters Concerning Fair Value, etc. of Financial Instruments
The following are the book values recorded on the balance sheet, fair values and the difference between
these amounts. The following tables do not include those for which determining the fair value is recognized to
be extremely difficult.

33(Thousand yen)
Fair Value

Difference(1) Cash and deposits

3,141,338

3,141,338-(2) Cash and deposits in trust

4,969,752

4,969,752-

131,308

131,308-(1,092)(1,092)-130,216130,216-

8,241,307

8,241,307-(4) Operating accounts payable

256,505

256,505-(5) Short-term loans payable

4,650,000

4,650,000-(6) Current portion of long-term loans
payable6,350,000

6,360,009

10,009(7) Investment corporation bonds

14,500,000

14,394,622(105,377)(8) Long-term loans payable

75,109,500

75,394,749

285,249

Total of liabilities

100,866,005

101,055,887

189,881---(3) Operating accounts receivable
Allowance for doubtful accounts

Total of assets(9) Derivative transactions

21st Fiscal Period (As of March 31, 2016)
Book Value Recordedon the Balance Sheet(Thousand yen)
Fair Value

Difference(1) Cash and deposits

3,428,890

3,428,890-(2) Cash and deposits in trust

5,016,055

5,016,055-

153,167

153,167-(4,503)(4,503)-

148,663

148,663-

8,593,609

8,593,609-(4) Operating accounts payable

336,786

336,786-(5) Short-term loans payable

7,200,000

7,200,000-(6) Current portion of long-term loans
payable12,300,000

12,362,929

62,929(7) Investment corporation bonds

14,500,000

14,643,879

143,879(8) Long-term loans payable

69,709,500

70,882,883

1,173,383

Total of liabilities

104,046,286

105,426,479

1,380,192---(3) Operating accounts receivable
Allowance for doubtful accounts

Total of assets(9) Derivative transactions(Note 1) Calculation method for fair value of financial instruments and matters concerning derivative transactions(1) Cash and deposits, (2) Cash and deposits in trust and (3) Operating accounts receivable
As these are settled within a short period of time, the fair value is approximately the same as the book value
and is thus stated at that book value.
In calculating the fair value of operating accounts receivable, it is difficult to determine the credit risk
individually. Accordingly, allowance for doubtful accounts is deemed as credit risk.

34

Sekisui House SI Residential Investment Corporation(4) Operating accounts payable and (5) Short-term loans payable
As these are settled within a short period of time, the fair value is approximately the same as the book value
and is thus stated at that book value.
(6) Current portion of long-term loans payable and (8) Long-term loans payable
The fair value of those with floating interest rates is based on the book value, as it reflects the market interest
rate within a short period of time and thus is considered to be nearly equal to the book value. (However, thefair value of certain long-term loans payable with floating interest rates that qualifies for the special
accounting of interest rate swaps [see Note “11. Derivative Transactions ”] is based on the method of
calculating by discounting the sum of its principal and interest payments net of any cash flows from theinterest-rate swap by a reasonably estimated rate assumed as being applicable to a new similar borrowing to
be made by the Investment Corporation.) The present value of those with fixed interest rates is based on themethod of discounting the combined total of principal and interest by a reasonably estimated rate assumed as
being applicable to a new similar borrowing to be made by the Investment Corporation.
(7) Investment corporation bonds
As the investment corporation bonds of the Investment Corporation are traded over the counter throughnegotiations, it is difficult to indicate the fair value as the market price. The present value is based on themethod of calculating by discounting the combined total of principal and interest by a reasonably estimatedrate assumed as being applicable to a similar bond issuance.
(9) Derivative transactions
See Note “11. Derivative Transactions”.

(Thousand yen)

Due after 1 Due after 2
Due after 3
Due after 4
Due in 1 Year
year through Years through Years through Years throughor Less
2 Years
3 Years
4 Years
5 Years(2) Cash and deposits intrust(3) Operating accounts
receivable
Total of assets

Due after
5 Years

3,141,338

-

-

-

-

-

4,969,752

-

-

-

-

-

131,308

-

-

-

-

-

8,242,399

-

-

-

-

-

21st Fiscal Period (As of March 31, 2016)(Thousand yen)
Due after 1 Due after 2
Due after 3
Due after 4
Due in 1 YearDue after
year through Years through Years through Years throughor Less
5 Years
2 Years
3 Years
4 Years
5 Years(1) Cash and deposits(2) Cash and deposits intrust(3) Operating accounts
receivable
Total of assets

3,428,890

-

-

-

-

-

5,016,055

-

-

-

-

-

153,167

-

-

-

-

-

8,598,113

-

-

-

-

-

(Note 3) Scheduled redemption and repayment amount of investment corporation bonds and borrowings
20th Fiscal Period (As of September 30, 2015)
Due in 1 Yearor Less(1) Short-term loans
payable(2) Investment
corporation bonds(3) Long-term loans
payableTotal of liabilities

35

Due in 1 Yearor Less(1) Short-term loans
payable(2) Investment
corporation bonds(3) Long-term loans
payableTotal of liabilities

Due after 1
Due after 2
Due after 3
Due after 4
year through Years through Years through Years through2 Years
3 Years
4 Years
5 Years

Due after 1
Due after 2
Due after 3
Due after 4
year through Years through Years through Years through2 Years
3 Years
4 Years
5 Years(Thousand yen)
Due after
5 Years

7,200,000

-

-

-

-

-

-

4,000,000

2,500,000

2,000,000-

6,000,000

12,300,000

4,805,000

10,882,000

6,792,500

15,400,000

31,830,000

19,500,000

8,805,000

13,382,000

8,792,500

15,400,000

37,830,000(Note 4) Financial instruments for which discerning of fair value is recognized to be extremely difficult
Category

20th Fiscal Period(As of September 30, 2015)(Thousand yen)
21st Fiscal Period(As of March 31, 2016)(1) Lease and guarantee deposits

242,672

242,672(2) Tenant leasehold and security
deposits in trust

2,247,305

2,016,256(1)(Note 2) Scheduled redemption amount of monetary claims
20th Fiscal Period (As of September 30, 2015)(1) Cash and deposits

21st Fiscal Period (As of March 31, 2016)(2)

Lease and guarantee deposits
Lease and guarantee deposits are not subject to disclosure of fair value because discerning of fair value is recognized to be
extremely difficult as reasonable estimation of cash flows is impossible since there is no market price and also since it isdifficult to calculate the deposit period in effect.
Tenant leasehold and security deposits in trust
Tenant leasehold and security deposits in trust, which are deposited by the tenants of rental properties, are not subject todisclosure of fair value because reasonable estimation of cash flows is recognized to be extremely difficult since there is nomarket price and also since it is difficult to calculate the deposit period in effect.

10. Securities
20th Fiscal Period (As of September 30, 2015)
Not applicable
21st Fiscal Period (As of March 31, 2016)
Not applicable

11. Derivative Transactions
1. Derivatives to which hedge accounting is not applied
20th Fiscal Period (As of September 30, 2015)
Not applicable
21st Fiscal Period (As of March 31, 2016)
Not applicable(Thousand yen)
Due after
5 Years

4,650,000

-

-

-

-

-

-

-

4,000,000

2,500,000

2,000,000

6,000,000

6,350,000

12,205,000

4,600,000

8,382,000

12,292,500

37,630,000

11,000,000

12,205,000

8,600,000

10,882,000

14,292,500

43,630,000

36Sekisui House SI Residential Investment Corporation

2. Derivatives to which hedge accounting is applied

2. Reconciliation of the statutory tax rate to the Effective Income Tax Rate

20th Fiscal Period (As of September 30, 2015)
The following is the contract amount or amount equivalent to the principal provided in the contract, etc. asof the balance sheet date for each method of hedge accounting.
Method of Hedge
Accounting

Type of Derivative
Transactions

Contract Amount (Note 1)
Main Hedged Item

Of Which,over 1 Year

(Thousand yen)Calculation
Fair
Method for
Value
the Fair
Value

Interest rate swap
Specialtransaction
Long-term loans
accounting for
71,609,500
71,609,500 (Note 2)
Receivable floating;payableinterest rate swaps
Payable fixed(Note 1) The contract amount of interest rate swaps is indicated based on the notional principal amount.
(Note 2) Transactions for which special accounting for interest rate swaps is applied are combined with long-term loans
payable, the hedged item. Accordingly, their fair value is included in the fair value of the relevant long-term loans
payable (See Note “9. Financial Instruments” 2. Matters Concerning Fair Value, etc. of Financial Instruments(Note 1) (8) Long-term loans payable.).

21st Fiscal Period (As of March 31, 2016)
The following is the contract amount or amount equivalent to the principal provided in the contract, etc. asof balance sheet date for each method of hedge accounting.
Method of Hedge
Accounting

Type of Derivative
Main Hedged Item
Transactions

Contract Amount (Note 1)
Of Which,over 1 Year

(Thousand yen)Calculation
Fair
Method for
Value
the Fair
Value

Interest rate swap
Special accounting
transaction
Long-term loans
for interest rate
73,509,500
64,009,500 (Note 2)
Receivable floating;payableswaps
Payable fixed(Note 1) The contract amount of interest rate swaps is indicated based on the notional principal amount.
(Note 2) Transactions for which special accounting for interest rate swaps is applied are combined with long-term loans
payable, the hedged item. Accordingly, their fair value is included in the fair value of the relevant long-term loans
payable (See Note “9. Financial Instruments” 2. Matters Concerning Fair Value, etc. of Financial Instruments (Note1) (8) Long-term loans payable.).

20th Fiscal Period (As of September 30, 2015)
Not applicable as the Investment Corporation does not have any retirement benefit plan

32.31%

Deductible cash distributions
Provision for reserve for reduction entry(31.56%)(0.72%)

ሺ31.57%)
ሺ0.69%)

Other

0.05%

Effective income tax rate

0.08%

0.12%

0.17%

3. Adjustment of Deferred Tax Assets and Deferred Tax Liabilities due to Changes in Income Tax Rate
With the Act Concerning Partial Amendment of the Income Tax Act, Etc. (Act No. 15 of 2015) passing the Dieton March 29, 2016, the income tax rate will be lowered, effective for the fiscal period starting on or after April
1, 2016. Accordingly, the effective statutory tax rate used to calculate deferred tax assets and deferred tax
liabilities concerning temporary differences that are expected to be reversed in and after the fiscal period
ending September 2016 (the 22nd fiscal period) will be changed to 31.74%. The impact of this change on thedeferred tax assets and deferred tax liabilities at the end of the 21st fiscal period was minimal.

14. Equity Method Income and Retained Earnings
20th Fiscal Period (from April 1, 2015 to September 30, 2015)
Not applicable as the Investment Corporation does not have any affiliated companies
21st Fiscal Period (from October 1, 2015 to March 31, 2016)
Not applicable as the Investment Corporation does not have any affiliated companies

15. Assets Retirement Obligations
20th Fiscal Period (from April 1, 2015 to September 30, 2015)
Not applicable

21st Fiscal Period (from October 1, 2015 to March 31, 2016)
Not applicable

1. Deferred tax assets and deferred tax liabilities consisted of the following:
20th Fiscal Period(As of September 30, 2015)(Thousand yen)
21st Fiscal Period(As of March 31, 2016)

4,781

5,338

352

1,429

Deferred tax assets:

37

32.31%

1. Parent Company and Major Corporation Unitholders
20th Fiscal Period (from April 1, 2015 to September 30, 2015)
Not applicable

13. Income Taxes

Amount of allowance for doubtful accounts notdeductible from taxable income
Amount of accrued business taxes not deductible
from taxable income
Subtotal deferred tax assets

56

238

5,191

7,005

Valuation allowance(5,134)

ሺ6,767)

Deferred tax assets, net

Statutory tax rate
(Adjustment)

16. Transactions with Related Parties

21st Fiscal Period (As of March 31, 2016)
Not applicable as the Investment Corporation does not have any retirement benefit plan

Total deferred tax assets

21st Fiscal Period(As of March 31, 2016)

21st Fiscal Period (from October 1, 2015 to March 31, 2016)
Not applicable

12. Retirement Benefits

Amortization of leasehold rights in trust

20th Fiscal Period(As of September 30, 2015)

56
56

238

238

2. Subsidiaries and Affiliates
20th Fiscal Period (from April 1, 2015 to September 30, 2015)
Not applicable
21st Fiscal Period (from October 1, 2015 to March 31, 2016)
Not applicable
3. Sister Companies
20th Fiscal Period (from April 1, 2015 to September 30, 2015)
Not applicable
21st Fiscal Period (from October 1, 2015 to March 31, 2016)
Not applicable38

Sekisui House SI Residential Investment Corporation

17. Segment Information

4. Directors and Major Individual Unitholders
20th Fiscal Period (from April 1, 2015 to September 30, 2015)

Classification Name

Share of
VotingRights [orBusiness
Ownership
Description orof Such in
Occupation
theInvestment
Corporation]

Description ofTransaction

Balance atTransaction
the End ofAmountCategory
Period(thousand(thousand
yen)
yen)

Payment of asset
Accounts
management fees to519,950
Sekisui House SI
Executive Director
payable 495,652(Note 2)
Asset Management,of the Investment
other
Director andLtd. (Note 1)
Corporation and
Osamu
President ofPayment of institution
its close
Minami Sekisui House SI
operation andrelatives
AccountsAssetadministration fees to
1,400
payable 1,512
Management, Ltd.
Sekisui House SI
other
Asset Management,
Ltd. (Note 3)(Note 1) The transaction was conducted by Osamu Minami as representative of a third party (Sekisui House SI AssetManagement, Ltd.), and the fees are based on the terms and conditions designated in the Articles ofIncorporation of the Investment Corporation.
(Note 2) The figure includes 35,412 thousand yen as asset management fees related to property acquisitions, which havebeen capitalized in the book value of individual real properties, and 25,600 thousand yen of asset management
fees related to property disposition, which have been recorded in other sales expenses.
(Note 3) The transaction was conducted by Osamu Minami as representative of a third party (Sekisui House SI AssetManagement, Ltd.), and the fees are based on the institution operation and administration agreement.
(Note 4) Of the amounts in the above table, consumption taxes are not included in the transaction amount but areincluded in the balance at the end of period.

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

Classification Name

Share of
VotingRights [orBusiness
Ownership
Description orof Such in
Occupation
theInvestment
Corporation]

Description ofTransaction

Balance atTransaction
the End ofAmountCategory
Period(thousand(thousand
yen)
yen)

Payment of asset
Accounts
management fees to609,360
Sekisui House SI
Executive Director
payable 558,058(Note 2)
Asset Management,of the Investment
other
Director andLtd. (Note 1)
Corporation and
Osamu
President ofPayment of institution
its close
Minami Sekisui House SI
operation andrelatives
AccountsAssetadministration fees to
1,400 payable 1,512
Management, Ltd.
Sekisui House SI
other
Asset Management,
Ltd. (Note 3)(Note 1) The transaction was conducted by Osamu Minami as representative of a third party (Sekisui House SI AssetManagement, Ltd.), and the fees are based on the terms and conditions designated in the Articles ofIncorporation of the Investment Corporation.
(Note 2) The figure includes 67,840 thousand yen as asset management fees related to property acquisitions, which havebeen capitalized in the book value of individual real properties, and 70,400 thousand yen of asset management
fees related to property disposition, which have been recorded in other sales expenses.
(Note 3) The transaction was conducted by Osamu Minami as representative of a third party (Sekisui House SI AssetManagement, Ltd.), and the fees are based on the institution operation and administration agreement.
(Note 4) Of the amounts in the above table, consumption taxes are not included in the transaction amount but areincluded in the balance at the end of period.

39[Segment Information]
Descriptions are omitted as the Investment Corporation has a single business segment of real estateleasing business.
[Related Information]
20th Fiscal Period (from April 1, 2015 to September 30, 2015)(1) Information by product and service
Descriptions are omitted as the Investment Corporation’s operating revenue under single product/service
classification for outside customers exceeds 90% of operating revenue recorded in the statement ofincome and retained earnings.
(2) Information by region(a) Operating revenue
Descriptions are omitted as the Investment Corporation’s operating revenue for outside customers inJapan exceeds 90% of operating revenue recorded in the statement of income and retained earnings.
(b) Property, plant and equipment
Descriptions are omitted as the amount of the Investment Corporation’s property, plant andequipment located in Japan exceeds 90% of property, plant and equipment recorded in the balance
sheet.
(3) Information by major customer
Descriptions are omitted as the Investment Corporation’s operating revenue for any individual outside
customer is less than 10% of operating revenue recorded in the statement of income and retained
earnings.
21st Fiscal Period (from October 1, 2015 to March 31, 2016)(1) Information by product and service
Descriptions are omitted as the Investment Corporation’s operating revenue under single product/service
classification for outside customers exceeds 90% of operating revenue recorded in the statement ofincome and retained earnings.
(2) Information by region(a) Operating revenue
Descriptions are omitted as the Investment Corporation’s operating revenue for outside customers inJapan exceeds 90% of operating revenue recorded in the statement of income and retained earnings.
(b) Property, plant and equipment
Descriptions are omitted as the amount of the Investment Corporation’s property, plant andequipment located in Japan exceeds 90% of property, plant and equipment recorded in the balance
sheet.
(3) Information by major customer
Descriptions are omitted as the Investment Corporation’s operating revenue for any individual outside
customer is less than 10% of operating revenue recorded in the statement of income and retained
earnings.

18. Per Unit Information
20th Fiscal Period
21st Fiscal Period(April 1, 2015 –(October 1, 2015 –Item
September 30, 2015)
March 31, 2016)
Net assets per unit
89,590 yen
89,639 yen
Net income per unit
2,170 yen
2,171 yen
(Note 1) Diluted net income per unit has not been presented since no warrants or convertible bonds are outstanding.
(Note 2) Net income per unit has been calculated based on the following data:
PeriodPeriodItem
Net Income (thousand yen)Amount not attributable to ordinary
unitholders (thousand yen)
Net income attributable to ordinary
investment units (thousand yen)
Average number of units during the
fiscal period (units)

20th Fiscal Period(April 1, 2015 –September 30, 2015)
2,209,731

21st Fiscal Period(October 1, 2015 –March 31, 2016)
2,210,494--

2,209,731

2,210,494

1,018,110

1,018,11040

Sekisui House SI Residential Investment Corporation

19. Rental Properties

3. Summary of Detailed Schedule of Real Properties

The Investment Corporation owns assets as trust beneficiary interests in real estate as entrusted property,
which comprises rental residential properties and rental retail properties. Real estate rental revenues andexpenses for the relevant rental properties amounted to 3,355,234 thousand yen for the 20th fiscal period
and 3,266,794 thousand yen for the 21st fiscal period, respectively. The following table provides the bookvalue recorded on the balance sheet, amount of change during the period and fair value of these rental
properties.

(Thousand yen)
21st Fiscal Period(October 1, 2015 –March 31, 2016)

20th Fiscal Period(April 1, 2015 –September 30, 2015)

Book value recorded on the balance sheet
Balance at the beginning of period
184,681,786
186,002,975
Amount of net change during period
1,321,189
2,698,486
Balance at the end of period
186,002,975
188,701,461
Fair value at the end of period
200,694,200
207,565,700(Note 1) Book value recorded on the balance sheet indicates the book value less accumulated depreciation.
(Note 2) Net change during the 20th fiscal period is comprised of increases primarily attributable to new acquisitions of 4
properties (5,696,499 thousand yen) and decrease primarily attributable to disposition of part of RINKU
HAGURAZAKI Plaza (sokochi) and b-toss IKEBUKURO (3,050,037 thousand yen) and depreciation (1,431,003
thousand yen). Net change during the 21st fiscal period is comprised of increases primarily attributable to new
acquisitions of 3 properties (12,113,113 thousand yen) and decrease primarily attributable to disposition of Esty
Maison IMAIKE, RINKU HAGURAZAKI Plaza, KOJIMA × BIC CAMERA Kamifukuoka store, Joy Square
YUGAWARA and Bell Plaza Shopping Center (8,240,605 thousand yen) and depreciation (1,468,403 thousandyen).
(Note 3)Pursuant to the Articles of Incorporation, the fair value at the end of period indicates the appraisal
value or surveyed value provided by outside real estate appraisers with the respective appraisal dates of
September 30, 2015 and March 31, 2016.

Balance Increase Decrease Balance
as ofduringduringas ofType of Assets
OctoberthetheMarch 31,
1, 2015 Period
Period2016
Buildings in trust
94,6308,213
1,451
101,392
Structures in trust
760
149
31
878
Machinery and
1,769
158
1
1,926
equipment in trust
Property,plant andTools, furniture
equipment and fixtures in
171
44
8
207
trust
Land in trust
101,906
3,842
7,132
98,617
Total
199,239
12,407
8,624
203,021
Leasehold rights
164
164
in trust
Intangible
Trademark rights
000
assets
Other
6
6
Total
172
0
171

1. Schedule of Securities
Not applicable
Real estate trust beneficiary interests are included in the Summary of Detailed Schedule of Real Properties.
2. Schedule of Contract Amount, Etc. and Fair Value of Derivative Transactions and Forward Exchange
Transactions(Thousand yen)

Category

Transaction other thanmarket transaction
Total

Type
Interest rate swap
transaction
Receivable floating;payable fixedContract Amount (Note 1)
Of Which,over 1 Year73,509,500

64,009,500

73,509,500

64,009,500

Fair Value(Note 2)-

(Note 1) The contract amount of interest rate swaps is indicated based on the notional principal amount.
(Note 2) Description of fair value is omitted as the transactions satisfy the requirements for special accounting under theaccounting standards for financial instruments.

1,420(Note)

71

13

136

(Note)

14,468

1,466

98,617
188,553(Note)

16

2

148

0
6
23

0
0
2

0
0
148

(Note)

Not applicable
Real estate trust beneficiary interests are included in the Summary of Detailed Schedule of Real Properties.
5. Schedule of Investment Corporation Bonds

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
Total

Issue Date

Balance as of Decrease Balance as of
CouponOctober 1,during the
March 31,
Rate
2015
Period2016(%)(million yen) (million yen) (million yen)

Redemption
Date

Purpose Collateral

February 28,
2013

4,000

-

4,000

0.630

February 28,
2018(Note 1) Unsecured

February 28,
2013

2,000

-

2,000

1.000

February 28,
2020(Note 1) Unsecured

February 28,
2014

2,500

-

2,500

0.374

February 28,
2019(Note 2) Unsecured

February 28,
2014

3,000

-

3,000

1.069

February 28,
2024(Note 2) Unsecured

August 29,
2014

3,000

-

3,000

0.871

August 30,
2024(Note 2) Unsecured

14,500-14,500(Note 1) The proceeds are used as funds for repayment of borrowings and acquisition of real estate trust beneficiaryinterests, etc.
(Note 2) The proceeds are used as funds for repayment of borrowings, etc.
(Note 3) These investment corporation bonds are equipped with pari passu clause among specified investment
corporation bonds.
(Note 4) Amounts of investment corporation bonds to be redeemed annually within five years after the date of the balance
sheet are as follows.
(Million yen)Due in 1 YearDue after 1 YearDue after 2 Years
Due after 3 Years
Due after 4 Yearsor Less
through 2 Years
through 3 Years
through 4 Years
through 5 Years
-

41

63

4. Schedule of Other Specified Assets

Name

21. Detailed Schedules

506(Note) The amount of increase during the 21st fiscal period is primarily attributable to the acquisition of MAST LIFE HINO,
Prime Maison YOKOHAMA NIHON-ODORI and KOBE Women’s Student Housing. The amount of decreaseduring the 21st fiscal period is attributable to the sale of RINKU HAGURAZAKI Plaza, KOJIMA × BIC CAMERA
Kamifukuoka store, Joy Square YUGAWARA, Bell Plaza Shopping Center and Esty Maison IMAIKE.

20. Significant Subsequent Events
Not applicable(Million yen)

Accumulated Depreciation
Net BalanceorDepreciation
as of March Remarks
Accumulated during the31, 2016
Amortization
Period13,697
1,368
87,694(Note)
193
21
684(Note)

4,000

2,500

2,000

-

42

Sekisui House SI Residential Investment Corporation

6. Schedule of Loans Payable
Category
LenderMizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.

Short-termloanspayableSumitomo Mitsui Banking
Corporation
The Bank ofTokyo-Mitsubishi UFJ, Ltd.

-

950

-

950

-

950

-

950

-

950

-

600

-

600

-

600

-

600

-

-

600

-

-

400

-

400

-

400

-

400

-

400

-

400

-

2,000

-

2,000

-

2,000

-

2,000

-

2,000

-

2,000

4,650

7,200

4,650

7,200

2,000

-

2,000

-

Mizuho Bank, Ltd.

425

-

425

-

Sumitomo Mitsui Banking
Corporation

425

-

425

-

Aozora Bank, Ltd.

100

-

-

100

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Sumitomo Mitsui Banking
Corporation
The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Subtotal
Development Bank ofJapan Inc.

Category
Repayment
Date

Repayment
Purpose
MethodRemarks

LenderMizuho Bank, Ltd.

February 29,
0.30500%
2016(Note 2)February 29,
0.30500%
2016(Note 2)0.29571%0.24955%

1.57000%

750

-

-

750

2,250

-

-

2,250

750

-

-

750

750

-

-

750

400

-

-

400

500

-

-

500

1,700

-

-

1,700

2,142

-

-

2,142

Resona Bank, Limited

500

-

-

500

The 77 Bank, Ltd.

500

-

-

500

The Hiroshima Bank, Ltd.

500

-

-

500

Mizuho Bank, Ltd.

100

-

-

100

500

-

-

500

500

-

-

500

Aozora Bank, Ltd.

200

-

-

200

Shinkin Central Bank

200

-

-

200

Mizuho Bank, Ltd.

300

-

-

300

400

-

-

400

300

-

-

300

200

-

-

200

700

-

-

700

500

-

-

500

200

-

-

200

Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui Banking
Corporation
The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Lump-sumupon
maturity(Note 4)

Mizuho Trust & Banking
Co., Ltd.
The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust andBanking Corporation

Unsecured/
Unguaranteed

August 31,
2016

August 31,
2016

The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust andBanking Corporation

February 29,
2016(Note 2)

(Note 5)Long-term
loans
payableBalance
Balance
Increase Decrease
as of
as of
duringduringAverage
OctoberMarch 31,
the Period the Period
Interest Rate
1, 20152016(million (million(Note 1)(million(million
yen)
yen)
yen)
yen)

Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust andBanking Corporation

Shinkin Central Bank

100

-

-

100

Mizuho Bank, Ltd.

200

-

-

200

200

-

-

200

200

-

-

200

100

-

-

100

100

-

-

100

Resona Bank, Limited

300

-

-

300

Aozora Bank, Ltd.

1,000

-

-

1,000

200

-

-

200

Mizuho Bank, Ltd.

500

-

-

500

200

-

-

200

2,500

-

-

2,500

600

-

-

600

200

-

-

200

Resona Bank, Limited

500

-

-

500

Aozora Bank, Ltd.

500

-

-

500

Mizuho Bank, Ltd.

200

-

-

200

200

-

-

200

1,100

-

-

1,100

500

-

-

500

Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust andBanking Corporation
Resona Bank, Limited
Development Bank ofJapan Inc.

1,200

-

-

1,200

The Bank of Fukuoka, Ltd.

500

-

-

500

Mizuho Bank, Ltd.

400

-

-

400

1,100

-

-

1,100

1,300

-

-

1,300

The Yamaguchi Bank, Ltd.

500

-

-

500

Development Bank ofJapan Inc.

941

-

-

941

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

43

950

600

Mizuho Bank, Ltd.

Long-term
loans
payableBalance
Balance
Increase Decrease
as of
as of
duringduringAverage
OctoberMarch 31,
the Period the Period
Interest Rate
1, 20152016(million (million(Note 1)(million(million
yen)
yen)
yen)
yen)

Mizuho Bank, Ltd.

1,470

-

-

1,470

Sumitomo Mitsui Banking
Corporation

1,470

-

-

1,470

The Norinchukin Bank

2,352

-

-

2,352

Mizuho Bank, Ltd.

176

-

-

176

Sumitomo Mitsui Banking
Corporation

176

-

-

176

1.18975%

February 28,
2017(Note 3)(Note 4)Lump-sumupon
maturity

1.19475%

1.15475%

February 28,
2017(Note 3)

Unsecured/
Unguaranteed(Note 6)

February 28,
2019(Note 5)0.95750%

August 31,
2017

Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui Trust
Bank, Limited
The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust andBanking Corporation

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

Repayment
Date

Repayment
Purpose
Method

0.89900%

February 28,
2019(Note 4)1.02225%

February 28,
2020

Remarks(Note 5)0.75600%

0.65475%

1.17200%

February 28,
2018

Lump-sumupon
maturity
February 28,
2017(Note 3)

Unsecured/
Unguaranteed(Note 4)

August 31,
2020(Note 5)0.55890%

August 31,
2018

44

Sekisui House SI Residential Investment Corporation

Category
LenderMizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
The Bank ofTokyo-Mitsubishi UFJ, Ltd.

--

Remarks

LenderBalance Increase Decrease Balance
as ofduringduringas of
Average
OctoberthetheMarch 31,
Repayment Repayment
Interest Rate
Purpose1, 2015
PeriodPeriod2016
Date
Method(Note 1)(million (million (million (million
yen)
yen)
yen)
yen)

300

Aozora Bank, Ltd.

200

-

-

200

The Senshu Ikeda Bank,
Ltd.

200

-

-

200

The Shizuoka Bank, Ltd.

200

-

-

200

-

-

300

400

-

-

400

800

-

-

800

The 77 Bank, Ltd.

200

-

-

200

400

-

-

400

Shinkin Central Bank

200

-

-

200

980

-

-

980

The Norinchukin Bank

500

-

-

500

500

-

-

500

The Hiroshima Bank, Ltd.

200

-

-

200

1,500

-

-

1,500

The Bank of Fukuoka, Ltd.

700

-

-

700

500

-

-

500

1,000

-

-

1,000

Resona Bank, Limited

800

-

-

800

800

-

-

800

The Senshu Ikeda Bank,
Ltd.

500

-

-

500

600

-

-

600

Mizuho Bank, Ltd.

400

-

-

400

300

-

-

300

500

-

-

500

800

-

-

800

500

-

-

500

500

-

-

500

500

-

-

500

The Yamaguchi Bank, Ltd.

200

-

-

200

500

-

-

500

Resona Bank, Limited

500

-

-

500

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

Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
Mitsubishi UFJ Trust andBanking Corporation
The Yamaguchi Bank, Ltd.

500

-

-

500

Resona Bank, Limited

500

-

-

500

Mizuho Bank, Ltd.

405

-

-

405

Sumitomo Mitsui Banking
Corporation

1,145

-

-

1,145

The Shizuoka Bank, Ltd.

500

-

-

500

Shinkin Central Bank

500

-

-

500

The Bank of Fukuoka, Ltd.

500

-

-

500

1.17350%

1.11000%

February 28,
2022(Note 4)

February 28,2022

Mizuho Bank, Ltd.
Mizuho Trust & Banking
Co., Ltd.
Sumitomo Mitsui Banking
Corporation
Sumitomo Mitsui Trust
Bank, Limited
The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust andBanking Corporation(Note 5)0.95225%

February 26,
2021

Lump-sumupon
maturity

0.79614%0.97300%

Unsecured/
Unguaranteed

February 28,
2020

February 26,
2021

Long-term
loans
payableDevelopment Bank ofJapan Inc.

1,000

-

-

1,000

The Norinchukin Bank

800

-

-

800

The Bank of Fukuoka, Ltd.

500

-

-

500

Mizuho Bank, Ltd.

500

-

-

500

500

-

-

500

300

-

-

300

Resona Bank, Limited

750

-

-

750

500

-

-

500

Sumitomo Mitsui Banking
Corporation
The Bank ofTokyo-Mitsubishi UFJ, Ltd.
(Note 4)

Mizuho Bank, Ltd.

300

-

-

300

Sumitomo Mitsui Banking
Corporation

The Senshu Ikeda Bank,
Ltd.

300

-

-

300

The Shizuoka Bank, Ltd.

500

-

-

500

2,500

-

-

2,500

The 77 Bank, Ltd.

500

-

-

500

Shinkin Central Bank

500

-

-

500

The Norinchukin Bank

500

-

-

500

The Hiroshima Bank, Ltd.

500

-

-

500

Mizuho Bank, Ltd.

600

-

-

600

Sumitomo Mitsui Banking
Corporation

300

-

-

300

Mizuho Bank, Ltd.

700

-

-

700

700

-

-

700

700

-

-

700

700

-

-

700

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
The Bank ofTokyo-Mitsubishi UFJ, Ltd.

2,000

-

-

2,000

900

-

-

900

Mizuho Bank, Ltd.

2,450

-

-

2,450

Sumitomo Mitsui Banking
Corporation

1,950

-

-

1,950

Mizuho Bank, Ltd.
Sumitomo Mitsui Banking
Corporation
The Bank ofTokyo-Mitsubishi UFJ, Ltd.

45

300

Category

300

Mizuho Bank, Ltd.

Long-term
loans
payableBalance Increase Decrease Balance
as ofduringduringas of
Average
OctoberthetheMarch 31,
Repayment Repayment
Interest Rate
Purpose1, 2015 Period
Period2016
Date
Method(Note 1)(million (million (million (million
yen)
yen)
yen)
yen)

200

-

200

-

200

-

200

-

300

-

300

-

0.96475%

August 31,
2022(Note 5)0.83600%

0.33000%

August 31,
2021

February 29,
2016(Note 2)

(Note 4)

Sumitomo Mitsui Banking
Corporation
The Bank ofTokyo-Mitsubishi UFJ, Ltd.
Mitsubishi UFJ Trust andBanking Corporation

0.86650%

February 28,
2023

0.85250%

February 28,
2023

Remarks(Note 5)0.73975%

February 28,
2022

0.62800%

February 26,
2021

0.29576%

August 31,
2016(Note 3)Lump-sumupon
maturity

Unsecured/
Unguaranteed(Note 4)46

Sekisui House SI Residential Investment Corporation

Balance Increase Decrease Balance
as ofduringduringas of
Average
OctoberthetheMarch 31,
Repayment Repayment
Interest Rate
Purpose1, 2015
PeriodPeriod2016
Date
Method(Note 1)(million (million (million (million
yen)
yen)
yen)
yen)

Category
LenderMizuho Bank, Ltd.

Long-term
loans
payableMizuho Trust & Banking Co.,
Ltd.
Sumitomo Mitsui Banking
Corporation
Development Bank of JapanInc.
Mizuho Bank
Subtotal
Total

-

450

-

450

-

1,000

-

1,000

-

450

-

450

-

2,100

-

2,100

-

100

-

100

81, 459

4,100

3,550

82,00986,10911,3008,200

89,2090.68030%

0.67400%

August 31,
2023

Lump-sumupon
maturity(Note 4)

Remarks

Unsecured/
Unguaranteed

August 31,
2023(Note 1) The “average interest rate” is a weighted-average figure during the fiscal period and is rounded to the fifth
decimal place. Furthermore, the average interest rate of borrowings for which the Investment Corporation
conducted interest rate swap transactions for the purpose of hedging the interest rate fluctuation risk is the rate
obtained by taking into account the effect of interest rate swaps.
(Note 2) The Investment Corporation made early repayment of the full amount of these loans on December 7, 2015.
(Note 3) These loans are recorded in the current liabilities on the balance sheet as current portion of long-term loans
payable as of the end of the 21st fiscal period.
(Note 4) These loans are used as funds for the acquisition of real estate trust beneficiary interests, etc.
(Note 5) These loans are used as funds for repayment of existing borrowings.
(Note 6) These loans are used as funds for redemption of the Second Series Unsecured Investment Corporation Bonds(with pari passu clause among specified investment corporation bonds and with limitations on resale among
qualified institutional investors) issued in March 2007.
(Note 7) Amounts of long-term loans payable to be repaid annually within five years after the date of the balance sheet are
as follows.
(Million yen)Due in 1 Yearor Less

12,30047

Due after 1 Yearthrough 2 Years

4,805

Due after 2 Years
through 3 Years

10,882

Due after 3 Years
through 4 Years

6,792

Due after 4 Years
through 5 Years

15,40048

Sekisui House SI Residential Investment Corporation

Overview of the Investment Corporation
Trade Name

Overview of the Asset Management Company
Corporate Name

Sekisui House SI Asset Management, Ltd.

3-1-31 Minami-Aoyama, Minato-ku, Tokyo
Tel: +81-3-5770-8973 (main number)Head Office3-1-31 Minami-Aoyama, Minato-ku, Tokyo
Tel: +81-3-5770-8973 (main number)

Osamu Minami

Paid-in Capital

200 million yen

Shareholders

Sekisui House, Ltd
Spring Investment Co., Ltd.

Sekisui House SI Residential Investment Corporation

Address
Representative

Asset Management Company

Executive Director

Sekisui House SI Asset Management, Ltd.

75%
25%

Osamu Minami
Nobuyoshi Sato
Senior Managing Director: Koji Sakamoto (in charge of IR & Financial Affairs Department, Engineering Management Department,
President:

Fiscal Term

End of March and end of September

Executive Vice President:

Directors
April 20, 2005

History

May 19, 2005
July 28, 2005

Registration and Establishment under Article 166 of the Act Concerning Investment Trusts andInvestment Corporations (Investment Trusts Act)
Implementation of registration by the Prime Minister under Article 187 of the Investment Trusts
Act. (registration number: Director of Kanto Local Finance Bureau No.33)
Listed on the Real Estate Investment Trust Section of the Tokyo Stock Exchange

Organizational Structure

Specific Related Corporation/
Pipeline Support Companies

negotiation rights, etc.

● Asset Management

Agreement● Institutional

Sekisui House SI
Asset Management, Ltd.

Sekisui House
SI Residential
Investment Corporation

provision of property information● Agreement concerning preferential
negotiation rights, etc.
● Agreement concerning preferential
negotiation rights

EstablishedObtained license as asset management agent for investment corporation under the Investment
Trusts Act (approval number: No. 41 licensed by the Prime Minister)

The asset management of the Investment Corporation is entrusted to Sekisui House SI Asset Management, Ltd., the asset management company.
The following diagram shows the organizational chart of the asset management company and its institutions in charge of compliance.

Sekiwa Real Estate Kyushu, Ltd.

Organ to discuss and decide on basic andimportant compliance matters, etc.

Board of Directors

Mizuho Trust &Banking Co., Ltd.

Compliance Committee
Investment Committee

Board of Directors
Executive
Director:
Supervisory
Director:
Supervisory
Director:

Compliance Committee

Organs in charge of compliance
Mizuho Trust &Banking Co., Ltd.

Compliance Officer

Kaoru Takamatsu

President

Mikio Koyano● Financial Agency Agreement

The Compliance Committee consists of
the Compliance Officer, President andexternal experts in compliance.

Transfer Agent

Osamu Minami

Independent Auditor

Sekiwa Real Estate Tohoku, Ltd. Sekiwa Real Estate Chugoku, Ltd.

Statutory Auditor

Agreement

Spring Investment Co., Ltd.
Sekiwa Real Estate Kansai, Ltd.

Entrustment Agreement● Asset Custody Agreement● Transfer Agency Services

Pipeline Support Companies

49

April 18, 2005

Administrator(Accounting) &Custodian

General Meeting ofUnitholders

Management Agreement● Agreement concerning preferential

Sekiwa Real Estate Chubu, Ltd.

July 28, 2004

History

General Meeting of
Shareholders● General Administrative Affairs● Agreement concerning preferential

Sekiwa Real Estate Kanto, Ltd.

Auditor (part-time):

Investment Corporation

Sekisui House, Ltd.
Sekiwa Real Estate, Ltd.

(Institutional management)

Director (part-time):

Masaki Katsura (in charge of Asset Management Department)
Yoshiki Inazawa (Senior Manager, Accounting & Finance Department, Sekisui House, Ltd.)
Naoki Kawamura (Section Manager, Legal Department, Sekisui House, Ltd.)

Structure to Manage the Investment Corporation

Based on its Articles of Incorporation, the Investment Corporation manages the funds paid in by the unitholders by investing primarily in real estate andrelated assets.
The following diagram indicates the operational roles and assignments of the companies involved in the management and administration of the Investment Corporation.

Asset Management Company & Administrator

Real Estate Investment Department and Management Department)

Director:

Investment Corporation
Bond Administrator

Risk Management andCompliance Office

The Bank of TokyoMitsubishi UFJ, Ltd.

Compliance Officer
The Compliance Officer is responsible
for managing the overall compliance of
the Asset Management Company. The
Compliance Officer shall be selectedbased on having sufficient examining
and supervising capabilities to ensurecompliance with laws, regulations andvarious rules by the Asset Management
Company.
Risk Management and Compliance Office

Ernst & Young ShinNihon LLC

Real Estate
Investment Department

Asset Management
Department

Engineering
Management Department

IR & Financial
Affairs Department

Management
Department

The Risk Management and Compliance
Office monitors operations with regard torisk management and compliance withlaws, regulations and various rules, etc.

50

Sekisui House SI Residential Investment Corporation

Unitholders Information

MEMO

Changes in Investment Unit Price and Transaction Volume in the Last Two Years (March 31, 2014 – March 31, 2016)(Investment unit price: yen)Transaction volume (Transaction volume: units)
30,000Market capitalization: 117,795 million yen (as of March 31, 2016)
Investment unit price

200,000

High (closing price) in the 21st fiscal period: 120,500 yen (March 11, 2016)
Low (closing price) in the 21st fiscal period: 93,800 yen (January 21, 2016)
Period-end investment unit price in the 21st fiscal period: 115,700 yen (March 31, 2016)
150,000

20,000100,000

10,00050,000Mar. 31,2014(17th FP)

0
Jun. 30

Dec. 31

Sept. 30,2014
(18th FP)Mar. 31,2015(19th FP)

Jun. 30

Dec. 31

Sept. 30,2015
(20th FP)Mar. 31,2016(21st FP)

Unitholder Composition
Financial Institutions (including securities companies)● Number of Unitholders

136（1.14%）End of 21st FP (Mar. 31, 2016)
11,958 unitholders

Foreign firms

Individuals and others

147（1.23%）
11,448（95.74%）227（1.90%）
133（1.11%）End of 20th FP (Sept. 30, 2015)
11,943 unitholders

Other domestic firms

120（1.00%）
11,465（96.00%）225（1.88%）● Number of Investment Units

End of 21st FP (Mar. 31, 2016)
1,018,110 units

End of 20th FP (Sept. 30, 2015)
1,018,110 units

651,771 units（64.02%）

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

684,260 units（67.21%）

91,822 units（9.02%）117,126 units（11.50%） 124,902 units（12.27%）

Major Unitholders
The following table shows the 10 largest unitholders according to the ratio of their owned investment units to the total number of investment units
issued as of March 31, 2016.
Name / Company Name

Number of Investment
Units Owned (units)

Ratio of Investment Units Owned toTotal Investment Units Issued(%) (Note)

Japan Trustee Services Bank, Ltd. (Trust Account)

258,594

25.39

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

64,467

6.33

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

54,221

5.32

Sekisui House, Ltd.

39,000

3.83

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

35,145

3.45

Nomura Bank (Luxembourg) S.A.

24,647

2.42

THE FUJI FIRE AND MARINE INSURANCE COMPANY, LIMITED

20,6302.02

DEUTSCHE BANK AG LONDON-PB NON-TREATY CLIENTS 613

20,156

1.97

The Hachijuni Bank, Ltd.

19,754

1.94

THE HOKURIKU BANK, LTD.
Total

16,0491.57

552,663

54.28(Note) The ratios of investment units owned to total investment units issued are rounded down to the nearest second decimal place.

51

52