27th Fiscal Period (six months ended May 2017) July, 2017
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27th Fiscal Period (six months ended May 2017)
July, 2017
1
Disclaimer
Unless otherwise specifically indicated on this material, amounts have been rounded down to the units stated, and the ratios, the number of
years, the magnifications and or have been rounded to the nearest one decimal place.
Table of Contents The purpose of this material is to provide information, and not to solicit or
canvass for investment in any particular product or to serve as a
recommendation to buy or to sell. To purchase United Urban Investment
Corporation investment units, please direct requests to any securities company.
Final investment decisions are entirely the responsibility of the investors
themselves
This material is neither a disclosure document nor an investment report under
the Act on Sales, etc of Financial Products, the Law Concerning Investment
Trusts and Investment Corporations or the Security Listing Regulations of the
Tokyo Stock Exchange
Data, analyses, etc., in this material are based on performance in a specific
period in the past, and are not guarantees of actual future investment results,
changes, etc. In addition, the forward-looking statements contained in this
material does not guarantee future performance. It should also be noted that
with real estate investment trusts there is a risk that, owing to fluctuations in the
prices and profitability of the real estate under management, the actual value
may decline to a value below that of the principal sum invested
No representations or warranties are made as to the accuracy or completeness
of the information provided in this material, the content of which is subject to
change or deletion without notice
Neither United Urban Investment Corporation nor Japan REIT Advisors Co., Ltd.
accept any responsibility of any kind for the consequences of investment
activities carried out on the basis of this material
Any reproduction or alternative use of the content of this material without prior
permission is prohibited
For using this material, please refer to “Definitions of Terms” on pages 2 to 3.
◇Table of Contents and Disclaimer 1
◇Definition of Terms 2
◇27th FP Major Events and 28th FP Schedule 4
5
8
22
314. Appendix
1. Financial Summary
2. Summary of Operations
3. Business Forecasts and Management Plan
Definitions of Words 1/2
2
Terms Definitions
UUR “United Urban Investment Corporation” may be abbreviated to as “UUR”.
JRA “Japan REIT Advisors Co., Ltd.” may be abbreviated to as “JRA”.
NCI “Nippon Commercial Investment Corporation” maybe referred to as “NCI”
NCI properties The properties which UUR succeeded from NCI by the Merger.
The Merger The merger, which made December 1, 2010 the effective date of the merger and made UUR the surviving corporation after the merger.
The Division of Units The 6-for-1 unit split of UUR units, effective December 1, 2010.
Difference between accounting and
taxation
It means there is the difference between the profit in accounting and the income in taxation. It is mainly arised because the costs required to
be booked in accounting is not equal to the costs permitted to be booked in taxation. With regard to UUR, there is difference between "book
value in accounting" and "book value in taxation" of NCI properties derived from the Merger, so there are the differences between accounting
and taxation in depreciatin cost and gain (loss) on the property sale, etc.
Each fiscal period is closed on the end of May or of November , and then, each fiscal period and the number of operating days which
appeared on this document are as below;
・24th FP：from June 1, 2015 to November 30, 2015 (183 days) ・25th FP：from December 1, 2015 to May 31, 2016 (183 days)
・26th FP：from June 1, 2016 to November 30, 2016 (183 days) ・27th FP：from December 1, 2016 to May 31, 2017 (182 days)
・28th FP：from June 1, 2017 to November 30, 2017 (183 days) ・29th FP：from December 1, 2017 to May 31, 2018 (182 days)
Acquisition (Sale) PriceThe price which is described in a purchase and sale agreement etc. is shown in the amount excluding miscellaneous expenses for the
acquisition (sale), consumption tax, etc. The Acquisition Price of NCI properties is the acceptance price at the time of the Merger.
EPUCalculated by "net income / the number of issued investment units outstanding at the end of the fiscal period". So, it is different from the "net
income per unit" on accounting which is calculated based on the average number of issued investment units for each fiscal period.
Amount of retained earnings per
units
Calculated by "Retained (Booked) amount as reserve retained for distribution from net income / the number of issued investment units
outstanding at the end of the fiscal period".
Reserve retained for Distribution Retained earnings not derived from The Merger (separate from Negative Goodwill).
Negative Goodwill
(Reserve for distribution/
Reserve for temporary difference)
It means "Reserve for distribution (before 26th FP)" or "Reserve for temporary difference (after 27th FP)", a reserve account derived from the
extraordinary profit on the Merger.
Decrease or usage of "Reserve for distribution" or "Reserve for temporary difference" in accounting is often written as "Use the negative
goodwill" or "Add the negative goodwill".
Retained Earnings"Negative Goodwill" and "Reserve retained for Distribution". The amount of reserve retained for distribution is often written as "(Amount of )
Retained Earnings".
Fiscal period
3
Definitions of Words 2/2 Terms Definitions
NOI“Net Operating Income”, the figure equal to the amount subtracting rental expenses (excluding depreciation and amortization) from rental
revenues.
Adjusted NOI Yield
Calculated by "Adjusted NOI / Acquisition price / number of operating days * 365 (annualized) * 100(%)".
In case of acquired properties, Adjusted NOI is the NOI amount whose taxes (fix asset tax & city plannning tax), which are not recognized as
operating expenses in each FP, is added to its costs.
Adjusted Profit after DepreciationCalculated by "Adjusted NOI after depreciation / Acquisition price / number of operating days * 365 (annualized) * 100(%)"
It is Adjusted NOI amount deducted depreciation costs (with regard to the part of properties, estimated or adjusted figures) in the FP.
Estimated NOI Yield
Calculated by "estimated NOI (annualized) / Acquisition price * 100(%)"
Estimated NOI (annualized) is, concerning about the acquired properties, the annual estimated NOI from acquisition by UUR, and calculated
on the leasing conditions after the acquisition.
Estimated NOI Yield after
depreciation
Calculated by "estimated NOI after depreciation (annualized) / Acquisition price * 100(%)"
Estimated NOI after depreciation (annualized) means, concerning about the acquired properties, the NOI amount that is deducted estimated
depreciation amount (annualized) from estimated NOI (annualized).
Estimated depreciation amount (annualized) means the annual estimated depreciation amount from acquisition by UUR and is calculated,
following with the UUR acounting policy, by the straight line depreciation rate (assumed when in the acquisition) based on the life of each
acquired property.
Occupancy Rate Calculated by "total leased floor space / total leasable floor space"
Cash Flow Occupancy Rate Calculated based on the floor area which yeilds rent actually, excluding the floor area which does not yeild rent due to free-rent period or so.
GOP
It is the abbreviation for "Gross Operating Profit". It is gross profit amount of hotel operations, which is deducted non-allocation costs (for
example, labor costs and utility costs of corporate or sales section which are not be included in operating costs of each section, etc) from the
profit of hotel business (lodging, party and others).
Variable rent system It is the rent system including the variable amount linked with the sale of tennants or with GOP etc.
Variable rent system with GOP It is the rent comprising "the fixed amount" and "the variable amount linked with GOP" defined on the lease agreements.
RevPARIt is the abbreviation for "Revenue Per Available Room", and is calculated by "Hotel sales from guest rooms per day / the number of
marketable guest rooms".
LTV (Total Assets) Caluculated by "Interest-bearing liabilities (including corporate bonds) / Total Assets * 100(%)".
LTVCaluculated by "Interest-bearing liabilities (including corporate bonds) / Total Assets (Net Assets + Appraised value at the end of fiscal period
– Book value at the end of fiscal period) * 100(%)".
Interest Bearing Debt CostCalculated by "(Interest expenses + financing related expenses) / Outstanding balance of interest bearing debt at the end of fiscal period /
number of operating days * 365".
Weighted-average Interest Rate Weighted average interest rate on all the interest bearing debt at the end of each fiscal period. Does not include financing related cost, etc.
The adjacent site to the b roppongi
It means the building with leasehold and the land of the adjacent site to “the b roppongi” which has been owned by UUR. UUR acquired the
building with leasehold by ¥320 million on Nov .18, 2016, and the land by ¥140 million on Jan. 13, 2017. UUR acquired the adjacent site to
the b roppongi because it enables the extension of the hotel building, so we recognize it as the concomitant to “the b roppongi”. Therefore it
is not reflected in the number of properties held by UUR nor included in UUR’s portfolio unless the particular notes.
The extension plan of the hotel is only an intension at the acquisition of the adjacent site to the b roppongi, and is not decided as of Jul. 14,
2017. Therefore, the changes of revenues and costs derived from this extension are not included in the business forecasts.
In detail about the acquisition, please refer to the "Notice Concerning Acquisition of Property (the adjacent site to the b roppongi)" dated
Nov.16, 2016.
27th FP Major Events and 28th FP Schedule
4
FP Month
(Note) In 28th FP, it is shown that settled, decided, occurred matters or assumptions, dated July 14, 2017.
28th
Jun.
Jul.
Aug.
Sep.
Oct.
Nov.
27th
Dec.
Jan.
2017
Feb.
Mar.
Apr.
May.
Events concerning properties Events concerning Finance
26thNov.
2016
New lease agreement of "HImonya shopping
center" started10th Capital Increase (PO)
Sale of "YokohamaAioicho Building"
Acquisition of buildingon "the adjacent site to
the b roppongi"
Acquisition of "K's Denki Nagoya-Kita"
Payment (Third-Party Allotment)
Redemption of Series 9 of Corporate Bond (¥10Bn) and
repayment of TL38/39A(¥6.5Bn)
Payment (Public Offering)"Himonya shopping
center" renewal open
The building of "theb fukuoka tenjin"
completed
"the b fukuoka tenjin" opens
Acquisition of
"LOOP-X・M"
Acquisition of"Shin Narashino
Logistics Center II"
Acquisition of"SS30"
Sale of "Pacif icMarks Shin-Urayasu"
Redemption of Series 11 of Corporate Bond (¥6.5Bn)
"Loisir Hotel & Spa Tow er Naha"Construction w ork for increasing
the number of guest rooms and renew al of the banquet
Available period of the preferential
negotiation right(~Jun. 2019)
Repayment of TL31/46/48/49/55A (¥9.8Bn)
Repayment of TL40/41/43/47A (¥12.9Bn)
Repayment of TL50A (¥4.4Bn)by new borrowing (Scheduled)
Taking dow n the building on "the
adjacent site to the b roppongi"
Complete the w ork on
Dec. 2017 (scheduled)
"Hotel JAL City Naha" Construction w ork for
room-type changeThe expansion w ork of "the b roppongi"
w ill start
Acquisitoon of"Scent Hills"
Sale of "HOTEL ROUTE-INN Nagoya Imaike Ekimae"
Acquisition of land of "the adjacent site to
the b roppongi"
Consider theexpansion plan
Executive Summary
5
Highlights of 27th FP
6
Net Income, EPU and DPU etc.
26th FP 27th FP 28th FP 29th FP(‘16/11) (‘17/5) (‘17/11) (‘18/5)(Actual) (Actual) (Forecast) (Forecast)
9,348Mn yen 10,285Mn yen 10,159Mn yen 10,312Mn yen
3,165yen 3,366yen 3,325yen 3,375yen
-155yen -141yen － －
－ +25yen +25yen +25yen
3,010yen 3,250yen 3,350yen 3,400yen
(Note) The f orecasts f or the 28th & 29th FP were announced on July 14, 2017.
Earnings per Unit
Negative goodwill
appropriated per Unit
Distribution per Unit
Net Income
Retained
Earnings per Unit
Acquisition and Disposition
Acquisition : 5 properties 35,040 Mn yen
Type of use Property (Asset) Name Acquisition Date
Retail K's Denki Nagoya-kita 1,750 Mn yen Dec. 1,2016
Residencial Scent Hills 1,300 Mn yen Dec. 1,2016
Others Shin-Narashino Logistics Center II 2,590 Mn yen Jan. 31,2017
Office・
HotelSS30 18,200 Mn yen Mar. 30,2017
Office LOOP-X・M 11,200 Mn yen Apr. 26,2017
Total 5 properties 35,040 Mn yen
Disposition : 1 property 4,100 Mn yen
Total Acquisition Price 621,559 Mn yen
(123 properties)
Acquisition price
Sale price :
DPU growth
2,750 2,804
2,896 2,900 2,953 3,000 3,010
3,250 3,350 3,400
¥2,500
¥3,000
¥3,500
¥4,000
20FP('13/11)
21FP('14/5)
22FP('14/11)
23FP('15/5)
24FP('15/11)
25FP('16/5)
26FP('16/11)
27FP('17/5)
28FP('17/11)Forecast
29FP('18/5)
Forecast
DPU growth for 7 consecutive FPs (Highest since the listing) and further DPU growth
Business results for the 27th FP (’17/5)
7
(in millions of yen, unless otherw ise indicated)
(Note) 27th FP(Forecast) is the one which was announced on January 18, 2017.
+592
（A） （B） （C）
22,864 22,982 22,327
21,501 22,919 +1,417 22,327
Property-related expenses 9,706 9,382 -324 9,458 -75
(+557)
Gain on Property Sale 1,363 63 -1,300 - +63
(-93)
(3,884) (3,991) (+106) (3,980) (+11)
11,807 11,484 -322 11,548 -63
(NOI) (15,679) (17,528) (+1,848) (16,849) (+679)
(of w hich, Taxes and public dues) (1,650) (1,646) (-4) (1,604) (+43)
2,100 2,102 +2 2,090 +12
Operating Income 11,057 11,497 +439 10,779 +718
7 38 +31 5 +34
Non-operating Expenses 1,716 1,250 -465 1,235 +15
Ordinary Income 9,349 10,286 +936 9,549 +737
EPU (yen/unit) 3,165 3,366 +201 3,125 +241
Net Income 9,348 10,285 +936 9,548 +737
+305
DPU (yen/unit) 3,010 3,250 +240 3,150 +100
(-) (75) (+75) (75) (-)
-
CAPEX 5,762 1,584 -4,177 2,159 -574
Retained as Reserve retained for distribution 459 431 -28 - +431
Change
（B－A） （B－C）
Operating Revenues
Revenues from real estate leasing operation
Operating Expenses
(of w hich, Repair costs)
Sales Admin. Expenses
(Income from real estate leasing operation)
(Actual) (Actual) (Forecast)
+117 +655
(of w hich, depreciation)
(11,794) (13,536) (+1,741) (12,869) (+667)
(1,048) (657) (-390) (751)
(of w hich, Rental revenues
& common area charges)(19,373) (20,855) (+1,482) (20,298)
Item
26th FP 27th FPChange
27th FP
(of w hich, Use of Negative Goodw ill)
Non-operating Revenues
No. of Investment Units Outstanding (unit) 2,953,022 3,055,087 +102,065 3,055,087
Total Cash Distributions 8,888 9,929 +1,040 9,624
Change
Operating Income +439
・Income from real estate leasing operation+1,741 (Revenues +1,417, Expenses -324)
Acquired 26th FP +174 (Revenues +299, Expenses +124)
Sold 26th FP -61 (Revenues -142, Expenses -80)
Acquired 27th FP +401 (Revenues +595, Expenses +194)
Sold 27th FP -110 (Revenues -64, Expenses +46)
Others +1,337 (Revenues +728, Expenses -608)
・Gain on Property Sale -1,300
・Sales Admin. Expenses +2
Non-operating Revenues +31 (Subsidy income, etc)
Non-operating Expenses -465 (Loss on disposition of assets -297,
investment unit issuance expenses -82, etc)
Change
Operating Income +718
・Income from real estate leasing operation +667 (Revenues +592, Expenses -75)
Acquired 26th FP +8 (Revenues +7, Expenses -1)
Acquired 27th FP +310 (Revenues +484, Expenses +173)
Sold 27th FP +4 (Revenues +107, Expenses -237)
Others +344 (Revenues 0, Expenses 0)
・Gain on Property Sale +63
・Sales Admin. Expenses +12
Non-operating Revenues +34 (Subsidy income, etc)
Non-operating Expenses +15 (Interest expenses +35,
Loss on disposition of assets -17,etc)
Properties acquired in 26th FP Properties acquired in 27th FP
・Kaw agoe Logistics Center ('16/6) ・K's Denki Nagoya-kita ('16/12)
・Asuto Nagamachi Dental Clinic ('16/8) ・Scent Hills ('16/12)
・KURURU ('16/9) ・Shin-Narashino Logistics Center II ('17/1)
Properties sold in ・SS30 ('17/3)
・Yokohama Aioicho Building (’16/11) ・LOOP-X・M ('17/4)
・HOTEL ROUTE-INN Nagoya Properties sold in 27th FP
Imaike Ekimae (’16/11) ・Pacif ic Marks Shin-Urayasu ('17/5)
26th FP (Actual) ⇒ 27th FP (Actual)
27th FP (Forecast) ⇒ 27th FP (Actual)
Summary of Operations
8
Acquisition 1/3 (27th FP)
9
Main Features
A complex with high convenient facility that
attracts many customers
A landmark building of Sendai area, located
near Sendai Station, the keystone of traffic in
Tohoku region
Robust tenants’ needs that leads to the stable
rent revenues
Fitness club bldg.
Hotel bldg.
Office
Fitness club
Hotel
Complex
facility
B44 Office Hotel
Location
Structure & Scale
Completed
Acquisition price
Estimated NOI Yield 6.0%
(after depreciation) 4.8%
Occupancy Rate 98.4%
Acquisition Date Mar. 30, 2017
Sendai, Miyagi (Other Regions (Other))
March 1989
18,200Mn yen
(As of May 31, 2017)
SS30
[Office Building] SRC/S B3/31F
[Fitness Club Building] RC B1/2F
[Hotel Building] SRC B2/12F
10
Main Features
A complex facility located in Minato-Ku,
Tokyo
Square office floors over 1,000㎡ without
pillars
Various room types fulfilling wide-ranged
residents’ needs
Fine view facing the Rainbow Bridge
LOOP-X LOOP-M
Acquisition 2/3 (27th FP)
Office
Cafeteria
Entrance
Parking Lot
Entrance
Parking Lot
Residence
7rooms /floor
Residence
4rooms /floor
(Office building)
(Residential building)
B45 Office
Location
Structure & Scale
Completed
Acquisition price
Estimated NOI Yield 4.5%
(after depreciation) 4.0%
Occupancy Rate 98.8%
Acquisition Date Apr. 26, 2017
LOOP-X・M
(As of May 31, 2017)
11,200Mn yen
Minato-ku, Tokyo (6 Central Wards of Tokyo)
[LOOP-X] S/SRC B1/17F
[LOOP-M] SRC/RC B1/18F
November 1991
11
Acquisition 3/3 (27th FP)
E11 Other
Location
Structure & Scale
Completed
Acquisition price
Estimated NOI Yield 5.0%
(after depreciation) 4.5%
Occupancy Rate 100.0%
Acquisition Date
(As of May 31, 2017)
Jan. 31, 2017
January 1990
Narashino, Chiba (Tokyo Metropolitan Area)
2,590Mn yen
Shin-Narashino Logistics Center II
S 4F
A41 K’s Denki Nagoya-kita Retail Property
Location Nishikasugai-gun, Aichi
(Other Regions (Nagoya))
Structure & Scale S 2F
Completed
Acquisition price 1,750Mn yen
Estimated NOI Yield 7.0%
(after depreciation) 6.4%
Occupancy Rate 100.0% (As of May 31, 2017)
Acquisition Date
June 2000
Dec. 1, 2016
D28 Scent Hills Residence
Location Osaka, Osaka
(Other Regions (Osaka))
Structure & Scale RC 13F (51rooms)
Completed
Acquisition price 1,300Mn yen
Estimated NOI Yield 5.3%
(after depreciation) 4.2%
Occupancy Rate 97.9% (As of May 31, 2017)
Acquisition Date
July 2010
Dec. 1, 2016
Main Features
Convenient location where numerous logistic facilities
stand
Efficient logistics center with high versatility
Major logistic base for the tenant to be expected stable
occupancy
12
Disposition (27th FP) and standing of the portfolio
Detail of disposition （Mn yen）
Location Date of SaleAppraisal Value
(Note1)
Book Value(Note 2)
Gain on sale
of the property
Urayasu,
ChibaMay 24, 2017 3,390 3,863 63
Adjusted NOI yield
Average
Occupancy rate
(Note1) Appraisal Value as of May 1, 2017. (Note2) Book Value as of the date of sale.
(Note3) Asdjusted NOI y ield in 26th FP and in 27th FP are calculated with rev ision of temporaly prof it and loss. Both Adjusted NOI y ield and av erage occupancy rate in 27th FP are based on the actual f igure until the date of sale.
2.00% (Note3)
92.5% 81.6% 78.8% 73.6% (Note3)
Property Name（Type of use） Acquisition Price Sale Price
Pacific Marks
Shin-Urayasu
（Office）
3,920 4,100
24th FP ('15/11) 25th FP ('16/5) 26th FP ('16/11) 27th FP ('17/5)
5.23% 3.56% 3.98% (Note3)
NCI property
Standing of the portfolio
26th FP
('16/11)Acquired in 27th FP Sold in 27the FP
27th FP
（'17/5）
Number of properties 119 5 1 123
Acquisition Price 59.0 Bn yen 35.0 Bn yen 3.9 Bn yen 621.5 Bn yen
Appraisal Value 67.5 Bn yen 35.8 Bn yen (Note1) 3.3 Bn yen （Note2） 713.2 Bn yen
Adjusted NOI yield 5.29% 5.48% (Note1) 2.00% (Note2) 5.82%
Adjusted NOI yield
(after depreciation)3.98% 4.57% (Note1) 0.48% (Note2) 4.50%
(Note1) With regard to the acquired properties in 27th FP (5 properties), Appraisal v alue is the total amount of each appraisal v alue when in the acquisition, and y ields are, as of the acquisiton date, the weighted av erage
"estimated NOI y ield" and "estimated NOI y ield (af ter depreciation)" by the acquisition prices
(Note2) With regard to the sold properties in 27th FP (1 property ), Appraisal v alue is as of May 1, 2017, and "estimated NOI y ield" and "estimated NOI y ield (af ter depreciation)" are the actual in 27th FP (until the date of sale).
Improvement of asset quality and profitability could be achieved through acquisition of the large-scale complexes taking advantage as a diversified J-
REIT and sale of the office experiencing deterioration in profitalbility due to the staggering occupancy rate with the far higher price than its appraisal
value.
Track Record of UUR’ External Growth
13
External Growth (Bn yen, Properties)
64.675.7
134.9 134.9153.7 155.3 160.6 166.4
191.8
214.1 215.7 215.7 219.9 219.9
387.2
416.7 422.5 429.0
471.2 474.8493.1
519.9 520.1
548.6
575.4590.4
621.5
1418
23 23
32 33 3436
41
48 49 49 50 50
8690 91
9497 97
103
108 108
117 118 119
123
Other
Residential Properties
Hotels
Office Buildings
Retail Properties
Number of Properties
Portfolio Summary (as of July 14, 2017)
14 (Note) Ratios are calculated based on the acquisition prices as of July 14, 2017.
Tokyo Metro. Area 62.4% Top 5 properties 18.7%
Location Type Property
4.5% 3.9%
3.7%
3.4%
3.2%
81.3%
33.4%
33.8%
17.9%
7.4%
7.5%
20.9%
9.7%
31.8%
16.2%
4.9%
16.4%6 central wards of Tokyo
23 wards of Tokyo
Tokyo Metropolitan Area
Osaka Area
Nagoya Area
Others
Others
Others
Retail Properties
Office Buildings
Hotel
Residential Properties
Yodobashi Camera Multimedia Kichijoji
Shin-osaka Central Tower
Shinsaibashi OPA Honkan
Shinjuku Washington HotelHonkan
Loisir Hotel &Spa Tower Naha
Portfolio Performance
15
In 27th FP, the portfolio profitability improved largely due to the rent revenues from Himonya Shopping center, the variable rent
linked with annual sales from KURURU and Shinjuku Washington Hotel Honkan and the contribution of acquired properties in
26th and 27th FP.
Also our occupancy rate has been kept quite high.
Trend of Porftfolio Occupancy Rate (end of fiscal period)
Details of occupancy rate
26thFP 27thFP28thFP
Forecast
29thFP
Forecast
Total 98.9% 99.2% 98.3% 98.9%
Retail 99.5% 99.6% 99.6% 99.6%
Office 97.1% 98.2% 97.8% 97.3%
Hotel 99.8% 99.8% 100.0% 99.9%
Residence 98.5% 98.5% 98.7% 97.3%
Others 100.0% 100.0% 92.3% 100.0%
97.0%98.0% 98.7% 98.8% 98.5% 98.8% 98.9% 99.2%
98.3% 98.9%
88.0%
89.7%
91.0%
94.9%
92.7%
92.8%
95.9%97.3% 97.2% 96.8%
70.0%
80.0%
90.0%
100.0%
20FP('13/11)
21FP('14/5)
22FP('14/11)
23FP('15/5)
24FP('15/11)
25FP('16/5)
26FP('16/11)
27FP('17/5)
28FP('17/11)
Forecast
29FP('18/5)
Forecast
Total Retail
Office Hotel
Residence Others
Office (excluding floor areaunder free rent)
Trend of Profit-ratio (Note) Yield of the properties held at the end of the period has been weighted av eraged by the acquisition price.
5.46% 5.44% 5.48% 5.57% 5.55% 5.50%5.29%
5.82%5.61% 5.70%
3.99% 4.05% 4.14%4.24% 4.26% 4.18%
3.98%
4.50%4.29% 4.36%
3.5%
4.0%
4.5%
5.0%
5.5%
6.0%
6.5%
20FP('13/11)
21FP('14/5)
22FP('14/11)
23FP('15/5)
24FP('15/11)
25FP('16/5)
26FP('16/11)
27FP('17/5)
28FP('17/11)
Forecast
29FP('18/5)
Forecast
Adjusted NOI Yield Adjusted NOI Yield after Depreciation
Trend of Rent in Existing Properties
16
Trend of Monthly Rent (based on lease contracts) in Existing Properties
（yen/tsubo）
Retail Offices Hotels Residences & Others
Rent unit price
6,7
70
6,9
80
6,9
10 1
2,6
67
12,7
77
12,7
57
8,4
74
8,6
48
8,6
46
6,7
09
6,7
35
6,7
46
(100.0)(103.1)(102.1)
(100.0)(100.9)(100.7)
(100.0)(102.1)(102.0)
(100.0)(100.4)(100.6)
2,000
4,000
6,000
8,000
10,000
12,000
■End of 25FP（'15/11）
■End of 26FP（'16/11）
■End of 27FP（'17/5）
(thousand ㎡)
Offices Hotels Residences & OthersRetail
Leased Area
523.1 522.7 523.3
288.6 289.9 291.0 207.0 207.5 207.4 246.7 247.9 248.0
(100.0) (99.9) (100.0)
(100.0) (100.4) (100.8)
(100.0) (100.2) (100.2)(100.0) (100.5) (100.5)
0
100
200
300
400
500
600
（Mn yen）
(Notes)
1. “Existing Properties" ref ers to the 115 properties which hav e been owned by United Urban f or one y ear or more as at the end of May 2017.
2. This analy sis shows the trend of f ixed rent only . Theref ore, v ariable rent, based on sales v olume, etc. is excluded f rom this analy sis.
1,068 1,101 1,091 1,072 1,086 1,088
503 515 514 444 448 449
(100.0) (103.0) (102.1) (100.0) (101.3) (101.6)
(100.0) (102.3) (102.2)(100.0) (100.9) (101.2)
200
400
600
800
1,000
1,200
25FP 26FP 27FP 25FP 26FP 27FP 25FP 26FP 27FP 25FP 26FP 27FP
Retail Offices Hotels Residences & Others
Monthly Rent (Contracted Base)
Recent Development of Leasing Activities 1/2
17
Track record of the rental revenues including common area
charges from hotels adopting variable rent system (Note)
(in millions of yen)
(Note) Whole of the rental rev enues including common area charges, so in some properties, the f igures
consist of the rev enues not only f rom hotel operators but also f rom other tenants.
0
500
1,000
1,500
2,000
2,500
3,000
3,500
22FP 23FP 24FP 25FP 26FP 27FP 28FPForecast
29FPForecast
Urawa Royal Pines HotelLoisir Hotel & Spa Tower Nahathe b roppongiUUR Yotsuya Sanchome BuildingHotel JAL City Naha
RevPAR Transition
(the hotels on variable rent system with GOP) (Note)
(Note) In connection with Rev PAR of the f our hotel properties which adopt “v ariable rent sy stem with
GOP”, 2011 y early result is def ined as 100, and show the index numbers of the of y early results
f rom 2012 to 2016. But because Urawa Roy al Pines Hotel has operated on a f iscal y ear beginning
on April 1, it is based on actual result f or the period f rom April 1 to March 31 of the successiv e
y ear.
90.0
100.0
110.0
120.0
130.0
140.0
150.0
160.0
2011 2012 2013 2014 2015 2016
Hotel JAL City Naha
the b roppongi
Loisir Hote l & Spa Tower Naha
Urawa Royal Pines Hotel
Office : Move-in VS Move-out
Move-in
Move-out
Total
24th FP 25th FP 26th FP 27th FP
-5,324㎡ +5,218㎡ -200㎡ +2,259㎡
+10,339㎡ +12,722㎡ +6,781㎡ +7,527㎡
-15,663㎡ -7,504㎡ -6,981㎡ -5,268㎡
-20,000
-15,000
-10,000
-5,000
0
+5,000
+10,000
+15,000
+20,000
22FP(‘14/11)
23FP(‘15/5)
24FP(‘15/11)
25FP(‘16/5)
26FP(‘16/11)
27FP(‘17/5)
28FP(‘17/11)
Forecast
29FP(‘18/5)
Forecast
Move-in(sqm)
Move-out(sqm)
Total
Office :Cash Flow Occupancy Rate (Note)
(Note) Occupancy is the av erage f or each f iscal period.
90.7%
93.2%94.1%
92.5%
95.0%96.5% 97.3% 96.9%
4.3%
3.6%2.9%
4.3%
2.4%1.3% 0.5% 0.6%
95.0%
96.9% 97.0% 96.8%97.4% 97.7% 97.9% 97.5%
84.0%
86.0%
88.0%
90.0%
92.0%
94.0%
96.0%
98.0%
100.0%
22ndFP 23rdFP 24thFP 25thFP 26thFP 27thFP 28thFPForecast
29thFPForecast
Occupancy Rate (Contract Base)
Free Rent
Cash Flow Occupancy
18
Recent Development of Leasing Activities 2/2
■Current situation and operation result by asset type
Type of
UseOverview
Ashiya Kawanishi Shopping
Mart
The single tenant left at the end of May 2017. Numerous offers for purchase or move-in have been
received due to its rarity in location after announcement of the tenant's leave. Our decision will be
made wihin 28th FP.
AEON MALL Uki
The facility has recovered from the damage of 2016 Kumamoto Earthquake. We have reached the
agreement with the tenant for the new lease contract after the current contract expires. Introduction
of energy saving equipments is planned in order to reduce costs.
ACTIOLE Ueno
(Previous : 455 Ueno Building)
The end of 26th FP, occupancy rate got down to 79.6％, but as the result of persistent leasing
activities, 100% occupancy rate was achieved at the end of June 2017. On April 2017, we changed
the building's name and renewed the entrance and wall-surface signboard.
KURURUBusiness of TOHO cinemas (cinema complex) has kept good and we received variable rent linked
with the annual sales in 27th FP (such rent is to be received once a year).
Kawasaki Toshiba Building
We have roughly agreed with the tenant for the renewal of the current fixed term lease contract. As
the result of Toshiba Corporation's company split, Toshiba Electronic Devices & Storage
Corporation has succeeded the status of the lessee since July 1, 2017.
Pacific Marks Yokohama EastOccupancy rate at the end of 26th FP was 89.9%. As the result of vigorous leasing activities, it will
reach 100% at the end of August 2017.
Shiba 520 Building
The leave of the major tenant on March 2016 brought the occupancy rate to 50%, but as the result
of the renewal work in common area and striving leasing activities, it will reach 100% at the end of
July 2017.
Shinjuku Washington Hotel
Honkan
The renovation work completed, and the new lease contract started from April 1, 2016. In 27th FP,
the hotel operation from April 2016 to March 2017 was very good and we received the variable rent
according to the annual sale almost same as expected.
Hotel JAL City Naha
Loisir Hotel & Spa Tower Naha
Nanzan Court Ichigokan
Nanzan Court Nigokan
GRAND-ROUGE
Nakanoshima-minami
Due to the leasing campeign, its occupancy rate has improved.
(End of 25th FP : 86.5%, End of 26th FP : 93.6%, End of 27th FP : 100%）
Others Occupancy rate has kept 100%. MT Ariake Center Bulding I & II
The lease termination notice from the major tenant (HAMAKYOREX CO., LTD) was received
because of their consignor's business integration. Leasing activities are undergone for finding the
new tenant.
TOPICS
Retail
Occupancy rate has kept high (End of
26th FP : 99.5%、End of 27th FP :
99.6%).
Making efforts on the leasing of such
properties as whose tenants issued
the lease termination notice, or that
have large vacant leasable area, etc.
Office
By progress in leasing, occupancy
rate increased from 97.1% (End of
26th FP) to 98.2% (End of 27th FP).
Hotel
Each hotel has been in good
business condition thanks to the
strong demand from inbound tourists.
The number of visitors into Okinawa Prefecture in FY2016 amounted almost 8.8 million and
renewed its highest record in 4 consective years (source: Okinawa Prefecture).
Both properties have been in good business condition due to high demand for lodging.
Renovation work will be planned in order to improve the profitability.
(Please refer Page 28 in detail)
Resi-
dential
Occupancy rate has kept high.
(End of 26th FP : 98.5%、End of 27th
FP : 98.5%)
We changed its master lessee and PM company on April 2017. By renewing its operation, we
intend to improve customer satisfaction and to get contracts from individual customers.
Financial Standings 1/3
19
Track Record of LTV at the End of Fiscal Period and DPU (Note)
(Note) The orange f igures on the upper graph show DPU. The f igures bef ore 14FP ('10/11) are div ided by six and rounded to the relev ant digit.
2,210 2,305 2,203 2,2772,568
2,877
3,225 3,325 3,375
540 445 547 473182
76
2525 25
2,048
3,182
2,440 2,487
2,6832,866 2,926 2,945
3,228
2,782
3,0502,910 2,882
2,6962,841
2,750 2,750 2,750 2,750 2,750 2,8042,896 2,900 2,953 3,000 3,010
3,2503,350 3,400
39.1%
45.2%
32.3%31.0%
37.2% 37.1%
39.3%40.6%
47.5%
43.7% 44.0% 44.1% 44.1% 44.1%
56.9%
47.2%48.1% 48.9% 49.6% 48.8% 48.8%
47.9%
44.5% 44.2%
46.5%
42.8% 42.2% 41.4% 41.4%
39.3%
45.7%
32.3%30.3%
35.3%34.1%
35.2% 35.1%
41.5%40.2%
42.5% 42.7% 43.5% 43.7%
56.5%
46.7% 47.5%48.5% 48.4%
47.1% 46.4%44.7%
40.7%39.7%
41.3%
37.2% 36.7%35.8% 35.8%
1FP('04/5)
2FP('04/11)
3FP('05/5)
4FP('05/11)
5FP('06/5)
6FP('06/11)
7FP('07/5)
8FP('07/11)
9FP('08/5)
10FP('08/11)
11FP('09/5)
12FP('09/11)
13FP('10/5)
14FP('10/11)
15FP('11/5)
16FP('11/11)
17FP('12/5)
18FP('12/11)
19FP('13/5)
20FP('13/11)
21FP('14/5)
22FP('14/11)
23FP('15/5)
24FP('15/11)
25FP('16/5)
26FP('16/11)
27FP('17/5)
28FP('17/11)Forecast
29FP('18/5)
Forecast
Consumption of Negative goodwill (yen/per unit)
EPU after deducting reserve retained for distribution (yen/per unit)
LTV (Total Asset)
LTV
Merger /Unit split
Use of Negative goodwill
20
Financial Standings 2/3
Repayment & Redemption Schedule (as of July 14, 2017) (Note)
(Mn yen)
(Note) The f igures in abov e graph is weighted av erage interest bearing debt cost (interest rates which include borrowing-related expenses and corporate bond issuance expenses etc) of all the interest bearing debt maturing on
each f iscal period f rom 28th FP to 31st FP.
0
5,000
10,000
15,000
20,000
25,000
30,000
35,000
28FP('17/11)
29FP('18/5)
30FP('18/11)
31FP('19/5)
32FP('19/11)
33FP('20/5)
34FP('20/11)
35FP('21/5)
36FP('21/11)
37FP('22/5)
38FP('22/11)
39FP('23/5)
40FP('23/11)
41FP('24/5)
42FP('24/11)
43FP('25/5)
44FP('25/11)
45FP('26/5)
46FP('26/11)
47FP('27/5)
48FP('27/11)
49FP('28/5)
Corporate Bond
Bank Loan
0.82%
0.72%
0.75% New borrowing in 2017: real interest rate 0.55%
0.80%
Trend of Interest Bearing Debt Cost and Weighted-average Interest Rate (Note)
1.68%
1.94%
2.13% 2.11%
1.91%1.99%
1.46%
1.22%
1.02% 0.97% 1.02%0.93%
0.86% 0.90%0.82%
1.40%1.52%
1.64%1.57%
1.37%
1.21%
1.01%0.86%
0.77% 0.78% 0.76% 0.71% 0.67% 0.67% 0.64%
0.30%
0.80%
1.30%
1.80%
2.30%
13FP('10/5)
14FP('10/11)
15FP('11/5)
16FP('11/11)
17FP('12/5)
18FP('12/11)
19FP('13/5)
20FP('13/11)
21FP('14/5)
22FP('14/11)
23FP('15/5)
24FP('15/11)
25FP('16/5)
26FP('16/11)
27FP('17/5)
Weighted Av.Interest Bearing Debt Cost
Weighted Av.Interest Rate
21
Financial Standings 3/3
Financial Indices
As of End of 27th FP End of 26th FP
July 14, 2017 (May 31, 2017) (November 30, 2016)
276.0Bn yen 285.8Bn yen 277.4Bn yen
Bank Loans 242.0Bn yen 245.3Bn yen 223.9Bn yen
Corporate Bonds 34.0Bn yen 40.5Bn yen 53.5Bn yen
Nil
4.0years 3.9years 3.3years
0.63% 0.64% 0.67%
100%
89.7% 90.7% 90.5%
36.0Bn yen
Credit Rating
Total Interest Bearing
Debt
Collateral/
Guarantee
Weighted average
duration of
interest bearing debt
Weighted average
interest rate of
interest bearing debt
Ratio of fixed interest
rate debt
Long term ratio of
interest bearing debt
(Agreement base)
Amount of
Commitment line
Rating Agency Rating
Japan Credit Rating Agency (JCR)Long term issuer rating : AA
(Outlook : stable)
Moody’s Japan K.K.Long term Issuer rating : A3
(Outlook : stable)
Lenders and Borrowing Amount (as of July 14, 2017) (in millions of yen)
Total: 242,007Mn yen
45,983
36,159
29,327
28,937
13,669
10,553
10,300
10,040
7,000
5,339
4,800
3,400
3,000
3,000
2,500
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
2,000
1,500
1,500
1,000
1,000
1,000
1,000
1,000
1,000
500
500
Sumitomo Mitsui Trust Bank, Limited
Sumitomo Mitsui Banking Corporation
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
Mizuho Bank, Ltd.
Mitsubishi UFJ Trust and Banking Corporation
The Norinchukin Bank
Development Bank of Japan Inc.
Aozora Bank, Ltd.
Shinsei Bank, Limited
Resona Bank, Limited
Mizuho Trust & Banking Co., Ltd.
The Bank of Fukuoka, Ltd.
Saitama Resona Bank, Limited
Shinkin Central Bank
ORIX Bank Corporation
The Shinkumi Federation Bank
The 77 Bank, Ltd.
Nippon Life Insurance Company
The Ashikaga Bank, Ltd.
The Nishi-Nippon City Bank, Ltd.
The Nomura Trust and Banking Co., Ltd.
Tokio Marine & Nichido Fire Insurance Co., Ltd.
The Daishi Bank,Ltd.
Meiji Yasuda Life Insurance Company
The Hiroshima Bank, Ltd
The Gunma Bank, Ltd.
Sompo Japan Nipponkoa Insurance Inc.
The Kagawa Bank, Ltd.
The Yamaguchi Bank, Ltd.
THE IYO BANK,Ltd.
Taiyo Life Insurance Company
The Bank of Kyoto, Ltd.
The Bank of Yokohama, Ltd.
The Tokyo Tomin Bank, Limited
Business Forecasts and Management Plan
22
Business Forecast
23
(in millions of yen, unless otherw ise indicated)
(Note) The f orecasts are the ones which were announced on July 14, 2017.
CAPEX 1,584 2,809 +1,223 3,808 +999
No. of Investment Units Outstanding (unit) 3,055,087 3,055,087 - 3,055,087 -
Retained as Reserve retained for distribution 431 - -431 - -
DPU (yen/unit) 3,250 3,350 +100 3,400 +50
(of w hich, Use of Negative Goodw ill) (75) (75) (-) (75) (-)
Total Cash Distributions 9,929 10,235 +305 10,387 +152
EPU (yen/unit) 3,366 3,325 -41 3,375 +50
Net Income 10,285 10,159 -126 10,312 +152
Ordinary Income 10,286 10,160 -126 10,312 +152
Non-operating Expenses 1,250 1,162 -87 1,178 +16
Non-operating Revenues 38 2 -36 2 -0
Operating Income 11,497 11,320 -177 11,489 +169
(NOI) (17,528) (17,643) (+115) (17,825) (+182)
(Income from real estate leasing operation) (13,536) (13,533) (-4) (13,662) (+129)
Sales Admin. Expenses 2,102 2,213 +110 2,173 -40
(of w hich, Taxes and public dues) (1,646) (1,720) (+72) (1,719) (-0)
(of w hich, depreciation) (3,991) (4,111) (+119) (4,163) (+52)
(of w hich, Repair costs) (657) (807) (+149) (701) (-105)
Property-related expenses 9,382 10,324 +941 10,111 -213
Operating Expenses 11,484 12,537 +1,051 12,283 -253
Gain on Property Sale 63 - -63 - -
(+621) (21,545) (+68)(of w hich, Rental revenues
& common area charges)(20,855) (21,477)
（A）
-83Revenues from real estate leasing operation 22,919 23,856 +937 23,773
（B） （B－A） （C） （C－B）
Operating Revenues 23,773 -83
Item
22,982 23,856 +874
27th FP 28th FPChange
29th FPChange
(Actual) (Forecast) (Forecast)
Change
Operating Income -177
・Income from real estate leasing operation -4 (Revenues +937, Expenses +941)
Acquired 27th FP +507 (Revenues +1,112, Expenses +605)
Sold 27th FP +23 (Revenues -125, Expenses -149)
Others -534 (Revenues -49, Expenses +484)
・Gain on Property Sale -63
・Sales Admin. Expenses +110 (Asset management fee +66,
The general meeting of unitholders
expenses +11, etc.)
Non-operating Revenues -36 (Accrued in the previous term)
Non-operating Expenses -87 (Loss on disposition of assets +42,
Investment unit issuance expenses -21,
Loss on disposition of assets -22, etc)
Change
Operating Income +169
・Income from real estate leasing operation +129 (Revenues -83, Expenses -213)
Revenues -83 (Additional usage fee -133,
Rental revenues including common
area charges +68, etc.)
Expenses -213 (Utility revenues -93, Repairs -105,
Leasing expenses -47, Depreciation
and amortization +52, etc.)
・Sales Admin. Expenses -40 (The general meeting of unitholders
expenses -11, etc)
Non-operating Expenses +16 (Loss on disposition of assets +20,etc)
Properties acquired in 27th FP Properties sold in 27th FP
・K's Denki Nagoya-kita ('16/12) ・Pacif ic Marks Shin-Urayasu ('17/5)
・Scent Hills ('16/12)
・Shin-Narashino Logistics Center II ('17/1)
・SS30 ('17/3)
・LOOP-X・M ('17/4)
27th FP (Actual) ⇒ 28th FP (Forecast)
28th FP (Forecast) ⇒ 29th FP (Forecast)
Track record and forecast of DPU
24
Track record of DPU
・・・・・
9FP ・・・・・ 20FP 21FP 22FP 23FP 24FP 25FP 26FP 27FP 28FP 29FP
('08/5) ('13/11) ('14/5) ('14/11) ('15/5) ('15/11) ('16/5) ('16/11) ('17/5) ('17/11) ('18/5)
Forecast Forecast
[Reference] Change in Asset size, LTV (Total Assets) and Retained Earnings
('08/5) ('17/5)
End of 9th FP End of 27th FP
¥3,228
¥2,750¥2,804
¥2,896 ¥2,900¥2,953
¥3,000 ¥3,010
¥3,250¥3,350
¥3,400
Asset size
LTV (Total Assets)
Retained Earnings
¥191.8 billion
47.5%
-
¥621.5 billion
42.2%
¥93.1 billion
DPU increased by 8.0% from the previous period,
and became the highest since the listing
(9thFP's ¥3,228 was the previous highest)
Further
DPU growth
External Growth 1/2
25
Continuous acquisition of the properties keeping a target rate of return on investment (around 4% in NOI yield after depreciation)
Close and continuous consideration of the property-reshuffle in order to improve profitability and quality of the portfolio
Track record of External Growth after the Merger (Bn yen)
45.6
40.5
35.0
31.5
26.8 28.5
18.2 18.0
9.8
6.3 6.4 3.6
16FP('11/11) 17FP('12/5) 18FP('12/11) 19FP('13/5) 20FP('13/11) 21FP('14/5) 22FP('14/11) 23FP('15/5) 24FP('15/11) 25FP('16/5) 26FP('16/11) 27FP('17/5)
Retail Properties Office Buildings
Hotels Residential Properties
Other
The hotel development project (The preferential negotiation right on purchase has been held by UUR)
・Rarity in location (Tenjin, the busiest area of Fukuoka City)
・Its acquisition is to be determined through the close scrutiny of the hotel operation
Outline of the hotel property
Name of hotel the b fukuoka tenjin
Location Fukuoka, Fukuoka (Other Regions)
Site Area 496.79㎡
Floor Area 3,567.22㎡
Structure & Scale S 10F
The date of hotel
operation startsJuly 1, 2017
Use Hotel(125 rooms)・Retail
Summary of the
Preferential
Negotiation Right
Available for purchase at prioce of
\2,885 million or more
(The exercisable period of the
preferential negotiation right is
whithin two years from the date that
hotel operation started)
July 1, 2017 OPEN
26
External Growth 2/2
Standing of each property
- Growth potential in future
- Current and historical occupancy rate
/ profitability
- Conformity with our investment guideline
- Operation costs or restraint in administration
etc.
Improvement of the portfolio quality and profitability
Contents of purchase offers
- Buyers’ credibility
- Conditions of purchase offers
etc.
Standing of the whole portfolio
- Situation of the relevant area or
sub-sectors
- Effect by re-investment of the
proceeds from the sale
etc.
Decision taking into consideration of all these factors
Our Policy on sale of the properties
Retail : Bellfa Uji
Office :
UUR Tsukiji Building
Hotel :
HOTEL ROUTE INN
Nagoya Imaike Ekimae
Residential：Ropponmatsu Court
Results of the property-sale after the merger (Mn yen)
Number of
the properties
Acquisition
priceAppraisal value
(Note1)Sales Price
Gain (Loss) on
the property
sales (Note2)
Retail 4 5,688 6,785 6,057 382
Office 8 23,420 23,030 24,015 467
Hotel 1 2,000 2,930 3,160 1,229
Residential 3 2,809 2,396 2,425 -26
Others 1 4,067 4,459 4,459 253
Total 17 37,984 39,600 40,116 2,306(Note 1) Appraisal v alue is the total amount of the latest ones as of the date of sales.
(Note 2) Gain (Loss) on the property sales is the total of Gain (Loss) recognized in the f iscal periods when each sale was done.
Internal Growth 1/2
27
Our policy on each asset type
Retail
■Increase rent revenues by the change of tenants in urban retail properties
■Strengthen the competitiveness of suburban properties through capital expenditure
■Stabilize the tenants' move by catching their needs in corporation with PM companies
Office
■Stable occupancy by the strengthening the relation with large-scale tenants
■Maintain high occupancy rate by monitoring the tenants' needs and bring about the
expansion of leasing area within the same buildings
■Promote negotiation with the tenants for increase of the rent by reflecting the current
market trend
■Enhancement and maintenance of property-competitiveness through capital expenditure
in the long term perspective
Hotel
■Promote negotiation with the tenants for increase of the rent taking into the consideration
of the current good bisiness conditions of hotels
■Improve the profitability in corporation with hotel operators, especially in hotels adopting
variable rent system
■Strategic capital expenditure in order to strengthen the property-competitiveness and
to increase our profit
Residential
■Keep high occupancy rate in corporation with PM companies
■Proceed the fine tuned leasing activities based on each property's situation
■Change the master lessee and PM company getting along with the market change
Others■Keep high occupancy rate in corporatin with PM companies
■Promote negotiation with the tenants for increase of the rent reflecting the market trend
28
Internal Growth 2/2
Acquired
Carry out the strategic CAPEX surveying for the future
622 rooms 640 rooms
Area Before After
3rd f loor of ANNEX Banquet "Tiida" Additional 18 rooms
Small banquet hall
"Geto no ma"Bridal salon
Small banquet hall
"Ko-cho"Hotel off ice
In consideration of increasing number of tourists in Okinawa, the large-scale renovation works in hotels located in Okinawa are to be carried out to
strengthen the property- competitiveness by enhancing convenience and satisfaction of the hotel-guests. In addition, the expansion plan of the b
roppongi is being undertaken in order to increase the rent revenues from the hotel.
「Loisir Hotel & Spa Tower Naha」
Construction work for increasing the number of guest rooms
and renewing the banquet
「Hotel JAL City Naha」
Construction work to change the room type
Schedule (plan) Jun. 2017～End of Nov. 2017 Schedule (plan) Oct. 2017～End of Jun. 2018
Cost (plan) 650 Mn yen Cost (plan) 0.9～1.0 Bn yen
Number of rooms
Overview of
the construc-
tion
Guest rooms
To cope w ith the increasing tourists
～Specif ication for business trip → Specif ication for tourists
w ith high grade～
・Improve comfortability by review ing rayout of rooms w ith
enlarged FFE
・Room composition suitable for plural occupants
・Premium tw in rooms w ith f ine view from the bath
Overview of
the construc-
tion
1st f loor of the
Main building
Banquet "Fantaisie"
Bridal salon
Hotel off ice
Extension and renew al of
Banquet "Fantaisie"
Common Area
Enriched function to improve users' convenience
・Banquets : Buffet restaurant and the renew al of the
interior design
・Restaurant : Enlarged corner of Teppan Yaki (Hot Plate)
by the popular chef
・Change of the design of the robby and elevators
・Renew al of the design of entrance and the signboard
w hich is expected to attract passengers' eyes
3rd f loor of the
Main building
(Source) Okinawa Pref ecture "May 2017, entering tourist statistics summary "
400K
500K
600K
700K
800K
900K
Jan. Feb. Mar. Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec.
2014 2015 2016 2017
[Reference] Trends of the monthly number of entering tourists
into Okinawa prefecture (Jan. 2014～May. 2017)
～ The monthly number of visitors has exceeded that
in the previous year for 43 consecutive months～
The extension plan of "the b roppongi"
Dismantle of the building on the adjacent site has
started for future extension of the hotel.We are undertaking the extension plan.
The extension w ork will start until the end of 2017.
Finance Strategy 1/2
29
Finance Strategy Building robust financial standing that can cope with the changes in the financial market
Reduction in interest-bearing liabilities cost
Standing of Interest-Bearing Debt
Loans and bonds (Note3)
Interest Rate (excluding f inancing
related expenses) (Note3, 4)
Interest-bearing debt cost
(including fees) (Note3, 5)
Averaged Duration (Note3)
Strategic utilization of retained earnings (negative goodwill and reserve retained for distribution)
・Utilize policy of retained earnings ・Standing of retained earnings (Note) ・Distribution policy of negative goodwill
Negative Goodwill
As of end of 26th FP ('16/11) 7,546Mn yen
Decreased in 27th FP (’17/5) -75Mn yen
As of end of 27th FP (’17/5) 7,470Mn yen
Reserve retained for distribution
As of end of 26th FP ('16/11) 1,416Mn yen
Reserved in 27th FP (’17/5) 431Mn yen
As of end of 27th FP (’17/5) 1,848Mn yen
Total Amount of Retained Earnings 9,319Mn yen
(Note) Each end of f iscal period amount shows amount af ter increasing or decreasing of negativ e goodwill and of reserv e retained f or distribution based on "Statements of Cash Distribution".
We are going to utilize retained earnings in order to accelerate the external growth and to improve the quality and profitability of the portfolio while lowering
the downside risk of DPU.
1.Promotion of external growth with the flexible equity-raise
We use our retained earnings to mitigate the inf luence in such case as the
dilution of DPU arises f rom the issuance of new units and stabilize DPU
lev el. Flexibility of equity -f inance corresponding to the economic and
f inancial markets and promotion of external growth can be expected through
these initiativ es.
2.Portfolio management from long-term perspective
We use our retained earnings to maintain DPU lev el in such cases as losses
on the disposition of property , sudden decreases in rev enues (major tenants'
leav e etc). This will enable us to build the optimum portf olio and asset
management in the long perspectiv e.
3.Coping with difference between accounting and taxation
We can mitigate the risk of large amount of corporate tax due to dif f erence
between accounting and taxation such as impairment loss by using our
retained earnings.
Distribution of the same amount for 50 years (100FP)
End of 27th FP(’16/11)
(Reserve for
temporary difference)
7,546Mn yen
Distribution policy
Distribute at least 1% of the
balance in each FP, to the
extent its balance remains(Starting from the 27th FP ('17/5))
Estimation (lower limit) 75.4Mn yen / FP
Financing up to CY2016 (Note1) Financing CY2017 (Note2) (Notes)
1. "Financing up to CY2016" means interest-bearing which was completed
to f inance up to December 31, 2016, as of July 14, 2017.
2. "Financing CY2017" means interest-bearing which was completed
f inance between January 1, 2017 and July 14, 2017, as of July 14,
2017.
3. Interest bearing debt amount is total f igure, and interest rate and term
length are calculated by weighted av erage.
4. Borrowing expenses and corporate bond issuance expenses are excluded
f rom these f igures.
5. The f ees concerning about borrowings or corporate bonds are included in
these f igures.
230,007Mn yen 46,000Mn yen
0.66% 0.46%
0.84% 0.55%
6.6 years 7.9 years
Around 30bpdown
30
Finance Strategy 2/2
Retained earnings (Reserve retained for distribution)
utilizing the difference between accounting and taxation
In case of "Profit in accounting > Profit (income) in taxation"
【Accounting】 【Taxation】
Profit in
accounting
Difference
between
accounting
& taxation
Retainable
amount
Distribution
of net
income
Profit
(income)
in taxation
Over 90% of the distributable profit
Retainable as "Reserve for temporary difference" or "Reserve retained for
distribution"
Satisfy the conduit requirements
＝ Cash distribution is recognized as expenses in taxation
⇒ No corporate income tax is applied
[Reference] In case of "Profit in accounting < Profit (income) in taxation"
【Accounting】 【Taxation】
Difference
between
accounting
& taxation
Profit
(income)
in taxation
Distribution
in excess of
net income
Profit in
accounting
Distribution
of net
income
Reserve for temporary difference
Taxableincome
Avoid to pay income taxes
Over 90% of the distributable profit
Taxable income is recognized due to the difference between accounting and taxation after cash distribution is regarded as expenses and the conduit requirements are satisfied
⇒ Need to distribute in excess of net income in order to avoid corporate income tax
Utilizing the difference between book value in accounting and in taxation which is derived from the sale of "Pacific Marks Shin-Urayasu (NCI property)"
in 27th FP ('17/5), 431 Mn yen (a part of the profit in accounting) has been
retained as "Reserve retained for distribution"
【Difference between accounting and taxation in case of UUR】With regard to most properties which UUR succeeded from NCI by the merger (NCI properties), the difference between accounting and taxation arises in
depreciation cost and gain (loss) on the property sale due to the difference between book value in accounting and that in taxation.
（Profit in accounting ＞ Profit (income) in taxation）
In case retained amount is within the range that satisfies the conduit requirements, a part of the profit in accounting is retainable as "Reserve
retained as distribution" without corporate income tax.
Possession of NCI Properties (as of May 31, 2017)
Number of
the properties
Acquisition
Price
(Bn yen)
Book value
in accounting
(Bn yen)
Retail 6 41.3 39.1
Office 19 99.3 96.2
Total 25 140.7 135.4
Appendix
31
Financial Indicators
32
FP 2017/5 FP 2016/11 FP 2016/5 FP 2015/11 FP 2015/5
(millions of yen, unless otherwise indicated) (27th FP: 182days) (26th FP: 183days) (25th FP: 183days) (24th FP: 183days) (23rd FP: 182days)
Total Assets 675,885 648,105 629,262 598,077 573,318
Number of Properties (properties) 123 119 118 117 108
Interest-bearing liabilities 285,857 277,407 293,157 264,707 255,357
Net Asset 351,801 333,592 298,009 297,340 282,906
Net Asset per unit (yen) 115,152 112,966 108,313 108,069 106,987
Return on Assets (ROA) (annualized) (%) 3.1% 2.9% 3.0% 2.8% 2.8%
Return on Equity (ROE) (annualized) (%) 6.0% 5.9% 6.1% 5.4% 5.8%
Equity ratio (%) 52.1% 51.5% 47.4% 49.7% 49.3%
Debt service coverage ratio (X) 13.2 11.6 11.1 10.3 9.8
NOI 17,528 15,679 15,420 14,847 14,540
FFO 14,213 11,870 11,939 11,398 11,354
FP 2014/11 FP 2014/5 FP 2013/11 FP 2013/5 FP 2012/11
(22nd FP: 183days) (21st FP: 182days) (20th FP: 183days) (19th FP: 182days) (18th FP: 183days)
Total Assets 561,415 527,807 527,025 516,739 462,503
Number of Properties (properties) 108 103 97 97 94
Interest-bearing liabilities 269,157 257,707 257,333 256,356 226,606
Net Asset 258,335 237,208 237,079 228,142 204,533
Net Asset per unit (yen) 102,830 99,659 99,605 98,958 97,240
Return on Assets (ROA) (annualized) (%) 2.7% 2.5% 2.3% 2.2% 2.0%
Return on Equity (ROE) (annualized) (%) 5.9% 5.6% 5.2% 4.9% 4.5%
Equity ratio (%) 46.0% 44.9% 45.0% 44.2% 44.2%
Debt service coverage ratio (X) 9.3 8.7 7.5 6.0 4.6
NOI 13,894 13,149 12,796 11,860 11,729
FFO 10,685 10,033 9,419 8,466 7,767
(Notes)
1. The amount of Gain on Negativ e Goodwill are not taken into account in calculating FFO and Debt serv ice cov erage ratio.
2. FFO = Net Income + Depreciation and Amortization + Gain/Loss on Sales of Real Estate
Balance Sheets
33
(JPY Mn) percentage (JPY Mn) percentage (JPY Mn) ratio
Current Assets 65,542 10.1% 62,793 9.3% -2,749 -4.2%
Cash and bank deposits 64,681 10.0% 61,493 9.1% -3,187 -4.9%
Rent receivables 477 0.1% 575 0.1% +97 +20.4%
Consumption taxes refundable - - - - ±0 -
Other 383 0.1% 724 0.1% +340 +89.0%
Fixed Assets 582,562 89.9% 613,092 90.7% +30,529 +5.2%
Property and equipment 571,058 88.1% 601,491 89.0% +30,433 +5.3%
Land 370,682 57.2% 395,054 58.4% +24,372 +6.6%
Buildings and structures 249,813 38.5% 259,464 38.4% +9,651 +3.9%
Machinery and equipment 2,328 0.4% 2,470 0.4% +141 +6.1%
Tools,furniture and fixtures 691 0.1% 735 0.1% +43 +6.3%
Construction in progress 439 0.1% 95 0.0% -343 -78.2%
Subtotal 623,956 96.3% 657,820 97.3% +33,864 +5.4%
Less accumulated depreciation -52,897 -8.2% -56,329 -8.3% -3,431 +6.5%
Intangible assets 9,553 1.5% 9,548 1.4% -4 -0.1%
Softw are 40 0.0% 42 0.0% +1 +4.4%
Leasehold 9,320 1.4% 9,320 1.4% ±0 +0.0%
Other 192 0.0% 185 0.0% -6 -3.5%
Investments and other assets 1,950 0.3% 2,052 0.3% +101 +5.2%
Investment securities 93 0.0% 93 0.0% ±0 +0.0%
Long-term prepaid expenses 1,766 0.3% 1,867 0.3% +101 +5.8%
Other 90 0.0% 90 0.0% ±0 -0.2%
TOTAL ASSETS 648,105 100.0% 675,885 100.0% +27,780 +4.3%
Current Liabilities 59,480 9.2% 54,594 8.1% -4,886 -8.2%
Trade accounts payable 2,129 0.3% 1,739 0.3% -389 -18.3%
Current portion of corporate bonds 19,500 3.0% 20,500 3.0% +1,000 +5.1%
Long-term debt due for repayment w ithin one year 33,700 5.2% 27,973 4.1% -5,727 -17.0%
Rent received in advance 3,309 0.5% 3,673 0.5% +363 +11.0%
Other 841 0.1% 708 0.1% -133 -15.9%
Long-term Liabilities 255,032 39.4% 269,490 39.9% +14,458 +5.7%
Corporate bonds 34,000 5.2% 20,000 3.0% -14,000 -41.2%
Long-term debt 190,207 29.3% 217,384 32.2% +27,177 +14.3%
Leasehold and security deposits received 30,610 4.7% 31,919 4.7% +1,308 +4.3%
Other 214 0.0% 186 0.0% -27 -12.8%
TOTAL LIABILITIES 314,512 48.5% 324,084 47.9% +9,571 +3.0%
Unitholders’ Equity 333,811 51.5% 352,002 52.1% +18,190 +5.4%
Unitholders’ capital 292,411 45.1% 309,205 45.7% +16,793 +5.7%
Capital surplus 23,548 3.6% 23,548 3.5% ±0 +0.0%
Reserve for distribution 7,546 1.2% - - -7,546 -
Reserve for Temporary difference Adjustment - - 7,546 1.1% +7,546 -
Reserve retained for distribution 956 0.1% 1,416 0.2% +459 +48.1%
Unappropriated retained earnings 9,348 1.4% 10,285 1.5% +936 +10.0%
Deferred gains or losses on hedges -219 -0.0% -201 -0.0% +18 -8.3%
TOTAL NET ASSETS 333,592 51.5% 351,801 52.1% +18,208 +5.5%
LIA
BIL
ITIE
SN
ET
AS
SE
TS
End of 26th Fiscal Period End of 27th Fiscal PeriodChange
(November 30, 2016) (May 31, 2017)A
SS
ET
S
Statements of Income
34
(JPY Mn) percentage (JPY Mn) percentage (JPY Mn) ratio
OPERATING REVENUES 22,864 100.0% 22,982 100.0% +117 +0.5%
Rental revenues 20,046 87.7% 21,592 94.0% +1,545 +7.7%
Other rental revenues 1,455 6.4% 1,327 5.8% -128 -8.8%
Gain on sales of real estate properties 1,363 6.0% 63 0.3% -1,299 -95.4%
OPERATING EXPENSES 11,807 51.6% 11,484 50.0% -322 -2.7%
Property-related expenses 9,706 42.5% 9,382 40.8% -324 -3.3%
Property and other taxes 1,650 7.2% 1,646 7.2% -3 -0.2%
Property management fees 1,514 6.6% 1,540 6.7% +25 +1.7%
Utilities 1,187 5.2% 1,138 5.0% -49 -4.1%
Casualty insurance 27 0.1% 28 0.1% +1 +4.4%
Repairs and maintenances 1,048 4.6% 657 2.9% -390 -37.3%
Depreciation and amortization 3,884 17.0% 3,991 17.4% +106 +2.7%
Other 394 1.7% 380 1.7% -13 -3.5%
Selling, General & Admin. Expenses 2,100 9.2% 2,102 9.1% +2 +0.1%
Asset management fees 1,752 7.7% 1,801 7.8% +49 +2.8%
Asset custodian fees 18 0.1% 18 0.1% ±0 +1.7%
Administrative service fees 67 0.3% 69 0.3% +1 +2.1%
Directors’ compensation 10 0.0% 10 0.0% ±0 +0.0%
Other 251 1.1% 202 0.9% -48 -19.4%
OPERATING INCOME 11,057 48.4% 11,497 50.0% +439 +4.0%
NON-OPERATING REVENUES 7 0.0% 38 0.2% +31 +429.4%
Reversal of cash distributions payable 3 0.0% 2 0.0% ±0 -23.1%
Subsidy income - - 2 0.0% +2 -
Compensation income - - 31 0.1% +31 -
Other 4 0.0% 2 0.0% -2 -48.6%
NON-OPERATING EXPENSES 1,716 7.5% 1,250 5.4% -465 -27.1%
Interest expense 1,051 4.6% 1,035 4.5% -15 -1.5%
Interest expense on corporate bonds 192 0.8% 134 0.6% -57 -29.8%
Investment unit issuance expenses 103 0.5% 21 0.1% -82 -79.0%
Other 368 1.6% 57 0.3% -310 -84.3%
ORDINARY INCOME 9,349 40.9% 10,286 44.8% +936 +10.0%
INCOME BEFORE INCOME TAXES 9,349 40.9% 10,286 44.8% +936 +10.0%
INCOME TAXES 0 0.0% 0 0.0% ±0 +0.0%
Current 0 0.0% 0 0.0% ±0 +0.0%
NET INCOME 9,348 40.9% 10,285 44.8% +936 +10.0%
26th Fiscal Period 27th Fiscal Period Change
(June 1,2016-November 30,2016) (December 1,2016-May 31,2017)
Trend of Unrealized Capital Gain
35
Trend of book value and appraisal value at the end of fiscal periods
(in billions of yen)
End of 26FP End of 27FP Change
Number of Properties 119 123 +4
Total Book Value 579.9 610.3 +30.4
Total Appraisal Value 675.7 713.2 +37.5
Unrealized capital gain 95.7 102.9 +7.2
Ratio of Gain/Loss 16.5% 16.9% +0.4%579.9
610.3
675.7
713.2
16.5% 16.9%
-10%
0%
10%
20%
30%
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
1FP
('04/5)
2FP
('04/11)
3FP
('05/5)
4FP
('05/11)
5FP
('06/5)
6FP
('06/11)
7FP
('07/5)
8FP
('07/11)
9FP
('08/5)
10FP
('08/11)
11FP
('09/5)
12FP
('09/11)
13FP
('10/5)
14FP
('10/11)
15FP
('11/5)
16FP
('11/11)
17FP
('12/5)
18FP
('12/11)
19FP
('13/5)
20FP
('13/11)
21FP
('14/5)
22FP
('14/11)
23FP
('15/5)
24FP
('15/11)
25FP
('16/5)
26FP
('16/11)
27FP
('17/5)
Book Value (left axis) Apraisal Value (left axis) Ratio of gain or loss (right axis)
Appraisal Value 1/3
36
（in millions of y en）
26th f iscal period (2016/11/30) 27th f iscal period (2017/5/31) Comparison between 27th and 26th FP
A1 Himony a Shopping Center 1 03/12/25 15,300 17,981 22,700 5.1% ＋4,718 17,714 22,700 5.1% ＋4,985 ±0 ±0% ±0% ＋266 JREI
A2 Joy Park Izumigaoka 1 03/12/22 6,770 5,192 4,560 5.9% -632 5,155 4,630 5.8% -525 ＋70 ＋1.5% -0.1% ＋107 JREI
A3 Ashiy a Kawanishi Shopping Mart 1 03/12/22 769 740 1,180 4.3% ＋439 739 1,160 4.4% ＋420 -20 -1.7% ＋0.1% -18 JREI
A4 Re-LAND Shopping Center 2 04/09/17 5,200 4,184 5,680 5.7% ＋1,495 4,168 5,760 5.6% ＋1,591 ＋80 ＋1.4% -0.1% ＋95 JREI
A5 AEON MALL Uki 3 04/12/03 11,100 9,685 8,500 7.7% -1,185 9,583 6,370 6.6% -3,213 -2,130 -25.1% -1.1% -2,027 JREI
A6 TENJIN LUCE 5 06/04/14 6,500 6,364 6,370 4.5% ＋5 6,337 6,430 4.4% ＋92 ＋60 ＋0.9% -0.1% ＋86 Nittochi
A7 Yamada Denki Tecc Land Sakai Honten 5 06/04/28 3,210 2,820 3,490 5.7% ＋669 2,795 3,540 5.6% ＋744 ＋50 ＋1.4% -0.1% ＋75 JREI
A8 Miy amae Shopping Center 7 07/02/19 5,312 5,142 5,010 5.0% -132 5,108 5,140 4.9% ＋31 ＋130 ＋2.6% -0.1% ＋164 JREI
A9 KONAMI SPORTS CLUB Korigaoka 8 07/06/29 2,040 1,641 1,890 5.5% ＋248 1,615 1,890 5.5% ＋274 ±0 ±0% ±0% ＋26 JREI
A10 ACTIOLE Minami-ikebukuro 8 07/09/27 3,760 3,676 3,290 4.6% -386 3,675 3,310 4.4% -365 ＋20 ＋0.6% -0.2% ＋20 JREI
A11 Tip's Machida Building 9 07/12/27 4,100 4,223 4,740 4.9% ＋516 4,222 4,830 4.8% ＋607 ＋90 ＋1.9% -0.1% ＋90 JREI
A12 Daiei Takarazuka Nakay ama 9 08/01/30 4,284 3,283 4,060 5.8% ＋776 3,253 4,060 5.8% ＋806 ±0 ±0% ±0% ＋29 JREI
A13 maricom-ISOGO / SYSTEM PLAZA YOKOHAMA (Site) 9 08/02/18 11,904 12,450 11,300 5.5% -1,150 12,450 11,300 5.5% -1,150 ±0 ±0% ±0% ±0 JREI
A14 ACTIOLE Kannai 10 08/06/30 2,410 2,305 2,070 4.7% -235 2,291 2,100 4.6% -191 ＋30 ＋1.4% -0.1% ＋43 JREI
A15 Shinsaibashi OPA Honkan 15 10/12/01 22,800 22,076 26,100 4.3% ＋4,023 22,026 26,100 4.2% ＋4,073 ±0 ±0% -0.1% ＋49 JREI
A19 Albore Jingumae 15 10/12/01 1,580 1,562 2,060 3.7% ＋497 1,567 2,100 3.6% ＋532 ＋40 ＋1.9% -0.1% ＋35 JREI
A20 Albore Sendai 15 10/12/01 2,590 2,381 3,260 4.6% ＋878 2,383 3,490 4.6% ＋1,106 ＋230 ＋7.1% ±0% ＋227 JREI
A21 Mallage Kashiwa 15 10/12/01 7,040 6,821 8,760 5.9% ＋1,938 6,756 8,860 5.8% ＋2,103 ＋100 ＋1.1% -0.1% ＋165 JREI
A23 Ito-Yokado Owariasahi 15 10/12/01 4,840 4,234 4,970 6.5% ＋735 4,195 4,980 6.5% ＋784 ＋10 ＋0.2% ±0% ＋49 JREI
A24 Yokohama Kariba Shopping Center 15 10/12/01 2,500 2,260 2,000 5.2% -260 2,238 2,000 5.2% -238 ±0 ±0% ±0% ＋21 JREI
A25 Luz Jiy ugaoka 16 11/06/15 5,090 4,995 6,050 4.0% ＋1,054 4,969 6,090 3.9% ＋1,120 ＋40 ＋0.7% -0.1% ＋65 JREI
A26 ACTIOLE Ichikawa 16 11/06/15 3,350 3,111 3,940 4.7% ＋828 3,076 4,050 4.6% ＋973 ＋110 ＋2.8% -0.1% ＋145 JREI
A27 Viv ahome Yokohama Aoba (Site) 16 11/10/31 2,600 2,740 3,140 5.4% ＋399 2,740 3,170 5.4% ＋429 ＋30 ＋1.0% ±0% ＋30 JREI
A28 Yamada Denki Tecc Land Aoba (Site) 17 12/05/18 2,150 2,270 2,470 5.4% ＋199 2,270 2,490 5.4% ＋219 ＋20 ＋0.8% ±0% ＋20 JREI
A29 Yodobashi Camera Multimedia Kichijoji 19 13/03/18 28,000 27,993 35,900 4.0% ＋7,906 27,835 35,900 4.0% ＋8,064 ±0 ±0% ±0% ＋157 JREI
A30 Yamada Denki Tecc Land New Matsudo Honten 19 13/03/18 5,150 5,006 6,470 5.8% ＋1,463 4,967 6,590 5.7% ＋1,622 ＋120 ＋1.9% -0.1% ＋159 JREI
A31 Tenjin Lof t Building 20 13/11/29 4,350 4,499 5,640 5.6% ＋1,140 4,519 5,660 5.5% ＋1,140 ＋20 ＋0.4% -0.1% ±0 JREI
A32 Narumi Shopping Center (Site) 21 14/04/08 6,460 6,850 6,950 4.9% ＋99 6,850 7,140 4.8% ＋289 ＋190 ＋2.7% -0.1% ＋190 Tanizawa
A33 Plussing Wav e Enoshima 22 14/08/29 1,800 1,866 2,140 5.3% ＋273 1,859 2,140 5.3% ＋280 ±0 ±0% ±0% ＋6 JREI
A34 LIFE Nishikujo (Site) 23 15/03/02 1,760 1,842 1,990 4.4% ＋147 1,842 2,010 4.4% ＋167 ＋20 ＋1.0% ±0% ＋20 Tanizawa
A35 LIFE Tamatsukuri (Site) 23 15/03/02 1,880 1,967 2,090 4.4% ＋122 1,967 2,120 4.3% ＋152 ＋30 ＋1.4% -0.1% ＋30 Tanizawa
A36 Granbell Ginza Building 24 15/06/30 2,621 2,718 2,900 3.6% ＋181 2,721 2,900 3.6% ＋178 ±0 ±0% ±0% -3 JREI
A37 UUR Tenjin Nishi-dori Building 24 15/07/15 5,500 5,707 5,800 5.7% ＋92 5,700 5,840 5.6% ＋139 ＋40 ＋0.7% -0.1% ＋46 JREI
A38 Luz Shonan Tsujido 24 15/09/30 3,938 4,046 4,350 5.3% ＋303 4,021 4,500 5.2% ＋478 ＋150 ＋3.4% -0.1% ＋175 Tanizawa
A39 ACTIOLE Ueno 25 15/12/04 3,000 3,122 3,290 3.5% ＋167 3,176 3,180 3.5% ＋3 -110 -3.3% ±0% -164 Tanizawa
A40 KURURU 26 16/09/01 9,285 9,653 10,500 4.4% ＋846 9,647 10,700 4.3% ＋1,052 ＋200 ＋1.9% -0.1% ＋206 Tanizawa
A41 K’s Denki Nagoy a-kita 27 16/12/01 1,750 - - - - 1,821 1,870 5.8% ＋48 - - - ＋48 Tanizawa
B1 T&G Hamamatsucho Building 1 03/12/26 2,257 2,084 3,110 4.1% ＋1,025 2,074 3,120 4.0% ＋1,045 ＋10 ＋0.3% -0.1% ＋20 Tanizawa
B2 SK Nagoy a Building 1 03/12/26 5,400 5,524 4,830 5.2% -694 5,504 4,970 5.1% -534 ＋140 ＋2.9% -0.1% ＋160 Tanizawa
B3 Fukuoka Eartheon Building 1 03/12/26 2,080 1,648 2,580 5.7% ＋931 1,634 2,630 5.6% ＋995 ＋50 ＋1.9% -0.1% ＋64 JREI
B4 Marumasu Kojimachi Building 1 04/03/29 2,350 2,438 2,440 3.7% ＋1 2,443 2,480 3.6% ＋36 ＋40 ＋1.6% -0.1% ＋34 JREI
B5 Rokubancho K Building 1 04/03/30 2,150 2,289 3,670 4.1% ＋1,380 2,281 3,710 4.0% ＋1,428 ＋40 ＋1.1% -0.1% ＋48 JREI
B6 Shin-Osaka Central Tower 3 04/12/02 24,000 24,101 27,800 5.1% ＋3,698 23,935 28,400 5.0% ＋4,464 ＋600 ＋2.2% -0.1% ＋765 Nittochi
④
Appraisal
Value
Cap
Rate
④－③
Gain or
Loss
④－②
(change)
④/②-1
(change)
Re
tail
Pro
pe
rty
Off
ice
Acquisition
Ty pe No. Property Name
Period
Date Price
①
Book
Value
Appraisal Value②
Appraisal
Value
Cap
Rate
②－①
Gain or
Loss
③
Book
Value
Cap Rate
(change)
Gain or
Loss
(change)
Appraisers
37
Appraisal Value 2/3 （in millions of y en）
26th f iscal period (2016/11/30) 27th f iscal period (2017/5/31) Comparison between 27th and 26th FP
B7 Kawasaki Toshiba Building 3 04/12/20 19,200 19,617 31,700 4.7% ＋12,082 19,819 32,300 4.6% ＋12,480 ＋600 ＋1.9% -0.1% ＋398 Tanizawa
B8 UUR Toy ocho Building 10 08/06/30 8,500 8,556 8,800 4.6% ＋243 8,523 8,810 4.5% ＋286 ＋10 ＋0.1% -0.1% ＋43 JREI
B9 FOUR SEASONS BLDG 13 09/12/25 4,200 4,231 5,330 4.4% ＋1,098 4,208 5,420 4.3% ＋1,211 ＋90 ＋1.7% -0.1% ＋112 JREI
B10 Hitachi High-Tech Building 15 10/12/01 14,800 14,522 15,700 3.9% ＋1,177 14,496 15,800 3.8% ＋1,303 ＋100 ＋0.6% -0.1% ＋125 JREI
B11 Pacif ic Marks Shinjuku Parkside 15 10/12/01 12,100 12,082 11,200 4.0% -882 12,020 11,400 3.9% -620 ＋200 ＋1.8% -0.1% ＋262 JREI
B13 Pacif ic Marks Tsukishima 15 10/12/01 6,080 5,894 6,430 4.7% ＋535 5,864 6,360 4.6% ＋495 -70 -1.1% -0.1% -40 JREI
B14 Pacif ic Marks Yokohama East 15 10/12/01 7,050 6,882 7,260 4.7% ＋377 6,847 7,390 4.6% ＋542 ＋130 ＋1.8% -0.1% ＋164 Tanizawa
B15 Pacif ic Marks Shin-Uray asu 15 10/12/01 3,920 3,756 3,540 5.4% -216 - - - - - - - ＋216 JREI
B17 Akasaka Hikawa Building 15 10/12/01 3,290 3,237 3,950 4.4% ＋712 3,238 3,970 4.3% ＋731 ＋20 ＋0.5% -0.1% ＋18 JREI
B18 Pacif ic Marks Shibuy a Koen-dori 15 10/12/01 2,570 2,464 3,040 4.9% ＋575 2,456 3,090 4.8% ＋633 ＋50 ＋1.6% -0.1% ＋57 JREI
B20 Pacif ic Marks Akasaka-mitsuke 15 10/12/01 2,210 2,163 2,210 4.0% ＋46 2,157 2,270 3.9% ＋112 ＋60 ＋2.7% -0.1% ＋66 JREI
B22 Pacif ic Marks Shin-Yokohama 15 10/12/01 1,710 1,578 1,620 4.9% ＋41 1,571 1,650 4.8% ＋78 ＋30 ＋1.9% -0.1% ＋36 Tanizawa
B25 Pacif ic Marks Kawasaki 15 10/12/01 9,890 9,251 11,100 4.4% ＋1,848 9,190 11,000 4.3% ＋1,809 -100 -0.9% -0.1% -39 Tanizawa
B26 Hamamatsucho 262 Building 15 10/12/01 6,840 6,633 7,010 4.1% ＋376 6,599 7,110 4.0% ＋510 ＋100 ＋1.4% -0.1% ＋133 JREI
B27 Lila Hijirizaka 15 10/12/01 2,750 2,646 3,060 4.5% ＋413 2,637 3,100 4.4% ＋462 ＋40 ＋1.3% -0.1% ＋48 JREI
B29 Otsuka HT Building 15 10/12/01 1,160 1,104 1,220 5.2% ＋115 1,100 1,220 5.1% ＋119 ±0 ±0% -0.1% ＋4 JREI
B30 Pacif ic Marks Shinjuku South-gate 15 10/12/01 2,460 2,507 3,200 4.1% ＋692 2,508 3,260 4.0% ＋751 ＋60 ＋1.9% -0.1% ＋58 JREI
B31 Pacif ic Marks Nishi-Umeda 15 10/12/01 6,860 6,420 7,020 4.6% ＋599 6,398 7,110 4.5% ＋711 ＋90 ＋1.3% -0.1% ＋111 Tanizawa
B32 Pacif ic Marks Higobashi 15 10/12/01 4,570 4,431 4,620 4.7% ＋188 4,450 4,640 4.6% ＋189 ＋20 ＋0.4% -0.1% ＋1 Tanizawa
B33 Nagoy a Nishiki City Building 15 10/12/01 2,670 2,436 2,450 5.3% ＋13 2,404 2,470 5.2% ＋65 ＋20 ＋0.8% -0.1% ＋52 Tanizawa
B34 Pacif ic Marks Esaka 15 10/12/01 9,590 9,627 9,410 5.2% -217 9,663 9,510 5.0% -153 ＋100 ＋1.1% -0.2% ＋63 Tanizawa
B35 Pacif ic Marks Sapporo Kita-Ichijo 15 10/12/01 1,790 1,807 2,020 5.5% ＋212 1,788 2,060 5.4% ＋271 ＋40 ＋2.0% -0.1% ＋59 Tanizawa
B36 Shin-Sapporo Center Building 15 10/12/01 987 885 1,100 5.9% ＋214 878 1,080 5.8% ＋201 -20 -1.8% -0.1% -13 Tanizawa
B37 ARENA TOWER 16 11/06/16 9,500 8,637 12,300 4.9% ＋3,662 8,539 12,600 4.8% ＋4,060 ＋300 ＋2.4% -0.1% ＋397 Tanizawa
B38 Yushima First Building 18 12/08/29 2,100 2,083 2,800 4.5% ＋716 2,080 2,850 4.4% ＋769 ＋50 ＋1.8% -0.1% ＋53 JREI
B39 Dogenzaka Square 18 12/11/22 2,300 2,317 2,810 4.1% ＋492 2,304 2,870 4.0% ＋565 ＋60 ＋2.1% -0.1% ＋72 JREI
B40 GRAND-SQUARE Shin-Sakae 21 14/02/28 1,480 1,433 1,940 5.5% ＋506 1,410 1,980 5.4% ＋569 ＋40 ＋2.1% -0.1% ＋63 JREI
B41 GRAND-SQUARE Meieki-minami 21 14/02/28 1,220 1,194 2,020 5.0% ＋825 1,177 2,120 4.9% ＋942 ＋100 ＋5.0% -0.1% ＋117 JREI
B42 Shiba 520 Building 21 14/03/28 2,100 2,179 2,760 4.2% ＋580 2,170 2,900 4.1% ＋729 ＋140 ＋5.1% -0.1% ＋149 JREI
B43 Hirose-dori SE Building 22 14/06/13 3,600 3,487 4,810 5.3% ＋1,322 3,440 4,940 5.3% ＋1,499 ＋130 ＋2.7% ±0% ＋176 JREI
B44 SS30 27 17/03/30 18,200 - - - - 19,090 18,200 5.0% -890 - - - -890 JREI
B45 LOOP-X・M 27 17/04/26 11,200 - - - - 11,774 11,600 4.4% -174 - - - -174 JREI
C1 Shinjuku Washington Hotel Honkan 1 03/12/22 21,140 22,597 25,900 4.7% ＋3,302 22,543 26,500 4.7% ＋3,956 ＋600 ＋2.3% ±0% ＋654 JREI
C2 Toy oko Inn Shinagawa-eki Takanawa-guchi 3 05/02/18 1,884 1,645 2,490 4.0% ＋844 1,638 2,540 3.9% ＋901 ＋50 ＋2.0% -0.1% ＋56 Nittochi
C3 MZ BLD. 9 08/04/10 3,800 3,260 3,900 5.1% ＋639 3,215 3,850 5.1% ＋634 -50 -1.3% ±0% -4 JREI
C4 HOTEL ROUTE-INN Yokohama Bashamichi 10 08/06/30 4,720 4,199 4,950 4.9% ＋750 4,152 5,040 4.8% ＋887 ＋90 ＋1.8% -0.1% ＋136 Nittochi
C5 Hotel JAL City Naha 16 11/10/25 7,650 7,208 11,400 4.9% ＋4,191 7,162 11,400 4.8% ＋4,237 ±0 ±0% -0.1% ＋46 Nittochi
C6 UUR Yotsuy a Sanchome Building 17 11/12/26 4,200 4,219 6,370 4.3% ＋2,150 4,254 6,410 4.3% ＋2,155 ＋40 ＋0.6% ±0% ＋5 JREI
C7 Yotsuy a 213 Building 19 13/03/18 5,020 5,027 6,190 4.3% ＋1,162 4,996 6,310 4.2% ＋1,313 ＋120 ＋1.9% -0.1% ＋151 JREI
C9 the b Roppongi 21 14/05/01 3,500 3,629 4,170 4.0% ＋540 3,623 4,180 4.0% ＋556 ＋10 ＋0.2% ±0% ＋15 JREI
C10 Toyoko Inn Kawasaki Ekimae Shiyakusho-dori 24 15/08/31 2,655 2,730 3,140 4.0% ＋409 2,715 3,110 4.0% ＋394 -30 -1.0% ±0% -14 DAIWA
C11 Toy oko Inn Hiroshima Heiwa-odori 24 15/08/31 2,113 2,164 2,400 5.1% ＋235 2,148 2,450 5.0% ＋301 ＋50 ＋2.1% -0.1% ＋66 DAIWA
C12 Toy oko Inn Naha Kokusai-dori Miebashi-eki 24 15/08/31 745 765 809 6.1% ＋43 759 812 6.1% ＋52 ＋3 ＋0.4% ±0% ＋9 DAIWA
Cap Rate
(change)
Gain or
Loss
(change)
④－②
(change)
④/②-1
(change)
Ho
tel
Ty pe No. Property Name
Acquisition
Appraisers
Period
Date Price
①
Book
Value
②
Appraisal
Value
Cap
Rate
②－①
Gain or
Loss
③
Book
Value
④
Appraisal
Value
Cap
Rate
④－③
Gain or
Loss
Appraisal Value
38
Appraisal Value 3/3 （in millions of y en）
26th f iscal period (2016/11/30) 27th f iscal period (2017/5/31) Comparison between 27th and 26th FP
C13 Roisir Hotel & Spa Tower Naha 25 16/02/05 20,000 20,556 22,200 5.5% ＋1,643 20,428 22,200 5.6% ＋1,771 ±0 ±0% ＋0.1% ＋128 JREI
C14 Urawa Roy al Pines Hotel 25 16/04/01 17,500 17,691 18,300 5.4% ＋608 17,646 18,400 5.4% ＋753 ＋100 ＋0.5% ±0% ＋145 JREI
D1 T&G Higashi-ikebukuro Mansion 1 03/12/26 2,021 1,502 2,250 4.5% ＋747 1,476 2,310 4.4% ＋833 ＋60 ＋2.7% -0.1% ＋85 Tanizawa
D4 Komazawa Court 1 03/12/26 1,680 1,520 2,320 4.5% ＋799 1,513 2,370 4.4% ＋856 ＋50 ＋2.2% -0.1% ＋56 JREI
D6 Sky Court Shiba-Daimon 2 04/10/15 1,175 1,038 1,310 4.4% ＋271 1,027 1,340 4.3% ＋312 ＋30 ＋2.3% -0.1% ＋41 Tanizawa
D7 Maison Ukima 2 04/10/26 3,530 3,190 4,500 4.8% ＋1,309 3,165 4,500 4.8% ＋1,334 ±0 ±0% ±0% ＋25 JREI
D8 Narashino Residence 2 04/10/26 1,140 1,005 1,240 7.1% ＋234 996 1,260 7.0% ＋263 ＋20 ＋1.6% -0.1% ＋28 JREI
D9 Aprile Shin-Ohgi Ichibankan 3 05/04/13 3,031 2,554 3,600 5.2% ＋1,045 2,533 3,600 5.2% ＋1,066 ±0 ±0% ±0% ＋20 JREI
D10 UUR Court Sapporo Kita-Sanjo 5 06/03/16 1,278 1,031 1,490 5.1% ＋458 1,013 1,490 5.1% ＋476 ±0 ±0% ±0% ＋17 Tanizawa
D11 UUR Court Chiba Soga 5 06/02/08 620 579 669 6.6% ＋89 578 679 6.5% ＋100 ＋10 ＋1.5% -0.1% ＋10 JREI
D12 Higashi-kurume Dormitory Shinkan 5 06/02/08 480 459 545 5.6% ＋85 458 545 5.6% ＋86 ±0 ±0% ±0% ＋1 JREI
D13 Nanzan Court Ichigokan 5 06/03/30 1,070 926 872 6.4% -54 920 873 5.4% -47 ＋1 ＋0.1% -1.0% ＋6 JREI
D14 Nanzan Court Nigokan 5 06/03/30 450 380 407 5.9% ＋26 378 428 5.0% ＋49 ＋21 ＋5.2% -0.9% ＋23 JREI
D15 CLIO Bunky o Koishikawa 5 06/04/28 3,170 2,778 3,290 4.5% ＋511 2,749 3,370 4.4% ＋620 ＋80 ＋2.4% -0.1% ＋108 JREI
D16 GRAND-ROUGE Sakae 6 06/11/30 1,570 1,273 1,320 4.9% ＋46 1,255 1,320 4.8% ＋64 ±0 ±0% -0.1% ＋18 JREI
D17 GRAND-ROUGE Sakae II 9 07/12/26 1,300 1,074 1,350 4.8% ＋275 1,058 1,370 4.8% ＋311 ＋20 ＋1.5% ±0% ＋36 JREI
D18 MA Sendai Building 10 08/09/24 3,440 2,859 4,270 5.8% ＋1,410 2,813 4,280 5.8% ＋1,466 ＋10 ＋0.2% ±0% ＋55 JREI
D19 UUR Court Nagoy a Meieki 10 08/09/30 1,473 1,258 1,540 4.8% ＋281 1,239 1,570 4.7% ＋330 ＋30 ＋1.9% -0.1% ＋48 Nittochi
D20 UUR Court Sapporo Shinoro Ichibankan 10 08/11/11 870 755 895 5.6% ＋139 744 910 5.5% ＋165 ＋15 ＋1.7% -0.1% ＋26 Nittochi
D21 Park Site IZUMI 10 08/11/21 900 822 757 4.8% -65 813 764 4.7% -49 ＋7 ＋0.9% -0.1% ＋15 JREI
D22 UUR Court Osaka Juso-honmachi 11 09/02/26 1,570 1,369 1,700 4.9% ＋330 1,352 1,740 4.8% ＋387 ＋40 ＋2.4% -0.1% ＋57 JREI
D23 UUR Court Kinshicho 16 11/06/15 2,900 2,940 3,610 4.6% ＋669 2,917 3,630 4.6% ＋712 ＋20 ＋0.6% ±0% ＋43 JREI
D24 UUR Court Sapporo Minami-Sanjo P.T. 18 12/06/28 2,050 1,930 2,920 5.3% ＋989 1,899 2,980 5.2% ＋1,080 ＋60 ＋2.1% -0.1% ＋90 JREI
D25 GRAND-ROUGE Nakanoshima-minami 20 13/06/25 1,380 1,370 1,650 4.8% ＋279 1,351 1,650 4.7% ＋298 ±0 ±0% -0.1% ＋18 JREI
D26 Glenpark Umeda-kita 22 14/08/29 5,150 5,239 5,870 4.7% ＋630 5,208 6,000 4.6% ＋791 ＋130 ＋2.2% -0.1% ＋160 Tanizawa
D27 UUR Court Shiki 24 15/09/18 2,730 2,908 3,040 5.3% ＋131 2,896 3,090 5.2% ＋193 ＋50 ＋1.6% -0.1% ＋61 JREI
D28 Scent Hills 27 16/12/01 1,300 - - - - 1,394 1,420 4.6% ＋25 - - - ＋25 Tanizawa
E1 Lily color Tohoku Branch 5 06/05/29 2,050 1,530 2,150 5.6% ＋619 1,506 2,190 5.5% ＋683 ＋40 ＋1.9% -0.1% ＋64 Nittochi
E2 KDDI Fuchu Building 19 13/05/16 4,920 4,893 5,480 5.4% ＋586 4,860 5,480 5.4% ＋619 ±0 ±0% ±0% ＋33 JREI
E3 Tsubogawa Square Building 20 13/11/01 4,150 4,080 5,600 5.9% ＋1,519 4,030 5,860 5.8% ＋1,829 ＋260 ＋4.6% -0.1% ＋310 JREI
E4 THE PLACE of TOKYO 21 14/05/01 3,500 3,508 4,190 5.1% ＋681 3,482 4,190 5.1% ＋707 ±0 ±0% ±0% ＋26 JREI
E5 Logistics Higashi-Ohgishima 22 14/10/02 4,233 4,222 4,860 4.8% ＋637 4,193 4,962 4.7% ＋769 ＋102 ＋2.1% -0.1% ＋131 JREI
E6 MT Ariake Center Building I&II 22 14/11/25 8,000 8,035 8,480 4.7% ＋444 8,017 8,500 4.7% ＋482 ＋20 ＋0.2% ±0% ＋38 JREI
E7 Quartz Tower 24 15/11/13 5,700 5,905 5,980 3.6% ＋74 5,889 6,090 3.5% ＋200 ＋110 ＋1.8% -0.1% ＋126 Tanizawa
E8 Shin-Narashino Logistics Center 24 15/08/07 2,555 2,664 2,630 4.8% -34 2,653 2,680 4.7% ＋26 ＋50 ＋1.9% -0.1% ＋61 JREI
E9 Kawagoe Logistics Center 26 16/06/17 7,550 7,844 8,990 4.7% ＋1,145 7,807 9,200 4.6% ＋1,392 ＋210 ＋2.3% -0.1% ＋247 Tanizawa
E10 Asuto Nagamachi Dental Clinic 26 16/08/29 1,200 1,255 1,310 5.2% ＋54 1,249 1,310 5.2% ＋60 ±0 ±0% ±0% ＋6 JREI
E11 Shin-Narashino Logistics Center Ⅱ 27 17/01/31 2,590 - - - - 2,623 2,610 4.8% -13 - - - -13 JREI
Total 625,479 579,993 675,774 4.8% ＋ 95,780 610,317 713,253 4.8% ＋ 102,936 ＋ 5,319 ＋ 0.8% -0.1% ＋ 7,155
(Notes) 1. Each of B26 and C1 was acquired in separate acquisitions. Initial acquisition date is shown as the acquisition date and aggregated acquisition price is shown as the acquisition price.
2. The discount rate applied f or the DCF method are shown as the “Cap Rate” f or A27, A28, A34, and A35.
3. The properties acquired or sold during this f iscal period are excluded.
ESTATE APPRAISAL CO., LTD.
5. A39 was changed name to "ACTIOLE Ueno" f rom April 24, 2017. (old name: 455 Ueno building)
4. "Appraisers" are ref erred to as “JREI” f or Japan Real Estate Institute, “Tanizawa” f or The Tanizawa Sōgō Appraisal Co., Ltd., “Nittochi” f or NIPPON TOCHI-TATEMONO Co., Ltd., and “Daiwa” f or DAIWA REAL
Appraisers④－③
Gain or
Loss
Appraisal ValueCap Rate
(change)
Gain or
Loss
(change)
④－②
(change)
④/②-1
(change)
②
Appraisal
Value
Cap
Rate
②－①
Gain or
Loss
③
Book
Value
④
Appraisal
Value
Cap
Rate
①
Book
Value
Oth
ers
Price
Period
DateTy pe No. Property Name
Acquisition
Re
sid
en
tia
l P
rop
ert
y
Property Income and Occupancy (1/5)
39
(in thousand y en) A1 A2 A3 A4 A5 A6 A7 A8 A9 A10 A11 A12
Himony a
Shopping
Center
Joy Park
Izumigaoka
Ashiy a
Kawanishi
Shopping Mart
Re-LAND
Shopping
Center
AEON MALL
UkiTENJIN LUCE
Yamada
Denki Tecc
Land Sakai
Miy amae
Shopping
Center
KONAMI
SPORTS
CLUB
ACTIOLE
Minami-
ikebukuro
Tip's Machida
Building
Daiei
Takarazuka
Nakay ama
Operating Rev enues 22,919,268 262,406 46,000 246,206 443,750 218,476 184,461 88,152 195,888 151,999
Rental Rev enues 21,592,214 229,552 30,000 203,827 443,750 198,489 157,204 87,389 147,331 151,999
Other Rental Rev enues 1,327,053 32,853 16,000 42,378 - 19,986 27,257 763 48,557 -
Operating Expenses 9,309,878 173,206 4,847 142,931 156,071 86,853 97,622 27,793 85,435 61,691
Property and other taxes 1,574,138 15,238 3,286 11,084 39,306 17,407 11,964 3,203 13,126 19,647
Other expenses 3,744,399 (Note) 102,646 325 85,725 8,610 37,004 (Note) 51,257 (Note) 10,682 54,612 12,393
Property Mgmt Fees 1,540,377 49,518 300 40,579 1,200 16,509 19,592 5,648 20,758 1,500
Utilities 1,138,142 38,020 - 31,940 - 18,551 26,871 - 29,410 -
Casualty Insurance 28,250 354 25 260 739 142 204 55 157 376
Repairs & Maintenance 657,404 5,137 - 11,689 3,800 1,420 3,783 2,025 2,475 5,021
Other Rental Expenses 380,225 9,615 - 1,255 2,871 380 804 2,952 1,810 5,495
Depreciation 3,991,339 55,322 1,235 46,120 108,153 32,441 34,399 13,907 17,696 29,650
Prof it f rom Rental Activ ities 13,609,390 391,047 89,199 41,152 103,274 287,679 131,623 71,076 86,839 26,573 60,358 110,453 90,308
Net Operating Income (NOI) 17,600,730 533,612 144,521 42,388 149,395 395,833 164,064 96,095 121,239 52,749 74,266 128,149 119,959
CAPEX 1,584,894 - 27,499 - 30,827 8,491 5,764 - - - 13,241 17,810 -
Occupancy (as of May 31, 2017) 99.2% 100.0% 100.0% 100.0% 98.7% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Adjusted NOI Yield 5.82% 6.99% 4.28% 11.05% 5.76% 7.15% 5.06% 6.00% 4.58% 5.19% 3.96% 6.27% 5.62%
(in thousand y en) A13 A14 A15 A19 A20 A21 A23 A24 A25 A26 A27 A28 A29
maricom-
ISOGO /
SYSTEM
ACTIOLE
Kannai
Shinsaibashi
OPA Honkan
Albore
Jingumae
Albore
SendaiMallage Kashiwa
Ito-Yokado
Owariasahi
Yokohama
Kariba
Shopping
Luz
Jiy ugaoka
Actiole
Ichikawa
Viv ahome
Yokohama
Aoba (site)
Yamada
Denki Tecc.
Land Aoba
Yodobashi
Camera
Multimedia
Operating Rev enues 299,274 64,077 684,348 49,147 96,217 672,045 224,064 161,350 150,153
Rental Rev enues 299,274 54,785 683,334 45,600 84,371 538,367 223,065 143,724 117,972
Other Rental Rev enues - 9,292 1,014 3,547 11,846 133,677 998 17,625 32,181
Operating Expenses 35,397 27,233 152,942 17,103 39,013 541,876 81,481 68,003 82,161
Property and other taxes 35,014 3,440 73,410 2,909 6,735 53,141 24,808 7,123 6,260
Other expenses 382 9,756 19,895 10,565 18,371 401,457 15,847 (Note) 30,304 40,405 (Note) (Note) (Note)
Property Mgmt Fees 288 5,669 3,336 2,593 5,992 128,545 1,800 10,525 10,349
Utilities - - - 3,322 9,676 100,873 - 9,843 23,382
Casualty Insurance 94 59 657 32 91 821 500 121 105
Repairs & Maintenance - 2,148 12,818 4,574 2,597 29,841 957 1,734 1,259
Other Rental Expenses - 1,878 3,083 41 13 141,375 12,589 8,079 5,308
Depreciation - 14,036 59,636 3,628 13,906 87,278 40,825 30,576 35,495
Prof it f rom Rental Activ ities 263,877 36,844 531,406 32,044 57,204 130,169 142,582 31,875 93,346 67,992 52,264 47,122 571,367
Net Operating Income (NOI) 263,877 50,881 591,042 35,672 71,110 217,447 183,408 54,276 123,923 103,488 52,264 47,122 728,798
CAPEX - 172 9,644 8,359 16,320 21,966 1,476 478 4,582 722 - - -
Occupancy (as of May 31, 2017) 100.0% 90.1% 100.0% 100.0% 100.0% 97.0% 100.0% 100.0% 93.3% 100.0% 100.0% 100.0% 100.0%
Adjusted NOI Yield 4.45% 4.23% 5.20% 4.53% 5.51% 6.19% 7.60% 4.35% 4.88% 6.20% 4.03% 4.40% 5.22%
(Note) Operating rev enues of this property cannot not disclosed as consent f rom the relev ant tenant has not been obtained. This is also adapted on “Property Income and Occupancy ”.
Total
40
Property Income and Occupancy (2/5)
(in thousand y en) A30 A31 A32 A33 A34 A35 A36 A37 A38 A39 A40 A41
Yamada
Denki Tecc
Land New
Tenjin Lof t
Building
Narumi
Shopping
Center (Site)
Plussing
Wav e
Enoshima
LIFE
Nishikujo
(Site)
LIFE
Tamatsukuri
(Site)
Granbell Ginza
Building
UUR Tenjin
Nishi-dori
Building
Luz Shonan
Tsujido
ACTIOLE
UenoKURURU
K's Denki
Nagoy a-kita
Retail
Total
Operating Rev enues 293,744 77,510 71,188 296,300 62,052 459,938 7,926,133
Rental Rev enues 271,444 66,438 66,912 229,642 57,059 400,450 7,359,363
Other Rental Rev enues 22,300 11,072 4,275 66,658 4,992 59,487 566,769
Operating Expenses 128,774 31,381 29,451 200,703 37,564 221,743 3,159,614
Property and other taxes 24,375 4,152 1,181 24,538 613 - 563,352
Other expenses (Note) 82,080 (Note) 19,900 (Note) (Note) 23,098 (Note) 146,218 34,325 182,617 (Note) 1,440,323
Property Mgmt Fees 42,986 4,939 4,281 69,292 4,897 109,589 577,834
Utilities 28,572 10,189 2,599 52,677 3,948 44,940 434,821
Casualty Insurance 252 57 56 368 49 931 8,910
Repairs & Maintenance 8,017 4,619 4,260 3,594 17,946 25,402 166,885
Other Rental Expenses 2,251 94 11,899 20,285 7,484 1,753 251,870
Depreciation 22,318 7,328 5,171 29,945 2,624 39,125 1,155,939
Prof it f rom Rental Activ ities 142,807 164,970 152,380 46,128 43,982 49,109 41,736 158,657 95,597 24,488 238,194 60,779 4,766,518
Net Operating Income (NOI) 182,961 187,289 152,380 53,457 43,982 49,109 46,907 165,333 125,542 27,113 277,320 65,470 5,922,457
CAPEX 1,028 42,534 - 470 - - 8,268 - 4,546 56,641 32,891 - 313,737
Occupancy (as of May 31, 2017) 100.0% 100.0% 100.0% 96.8% 100.0% 100.0% 94.2% 100.0% 98.1% 89.8% 100.0% 100.0% 99.6%
Adjusted NOI Yield 7.12% 8.63% 4.73% 5.96% 5.01% 5.24% 3.59% 6.03% 6.39% 1.81% 5.32% 6.96% 5.55%
(in thousand y en) B1 B2 B3 B4 B5 B6 B7 B8 B9 B10 B11 B13 B14
T&G
Hamamatsuc
ho Building
SK Nagoy a
Building
Fukuoka
Eartheon
Building
Marumasu
Kojimachi
Building
Rokubancho
K Building
Shin-Osaka
Central Tower
Kawasaki
Toshiba
Building
UUR Toy ocho
Building
FOUR
SEASONS
BLDG
Hitachi High-
Tech Building
Pacif ic Marks
Shinjuku
Parkside
Pacif ic Marks
Tsukishima
Pacif ic Marks
Yokohama
East
Operating Rev enues 93,291 197,749 110,888 89,207 108,515 1,092,532 836,662 274,636 176,405 406,432 351,577 260,536 232,540
Rental Rev enues 84,297 180,801 103,003 84,764 108,515 974,973 836,594 254,336 161,468 401,164 323,442 226,392 213,305
Other Rental Rev enues 8,994 16,948 7,884 4,442 - 117,558 67 20,299 14,937 5,267 28,135 34,144 19,234
Operating Expenses 48,626 85,218 48,702 46,077 41,406 517,315 325,038 90,240 70,857 118,565 166,796 107,313 139,856
Property and other taxes 9,030 14,512 7,251 13,187 10,995 85,587 50,864 12,593 10,158 40,615 38,136 19,525 20,683
Other expenses 26,605 40,187 23,382 20,416 18,318 234,492 72,751 42,528 35,346 45,641 65,901 53,462 57,223
Property Mgmt Fees 5,091 22,415 12,095 8,649 13,537 102,298 6,000 19,402 17,742 24,412 29,894 21,667 23,574
Utilities 5,743 15,330 8,418 6,584 - 106,897 - 20,058 15,003 14,011 26,445 23,222 18,504
Casualty Insurance 85 282 121 320 101 1,216 959 237 145 310 384 323 348
Repairs & Maintenance 15,683 1,270 2,421 3,533 4,679 17,128 65,791 2,715 2,153 6,421 7,693 6,986 8,848
Other Rental Expenses 2 888 324 1,327 - 6,951 0 115 301 484 1,483 1,263 5,947
Depreciation 12,990 30,517 18,068 12,472 12,092 197,235 201,423 35,118 25,352 32,309 62,757 34,324 61,949
Prof it f rom Rental Activ ities 44,665 112,531 62,186 43,130 67,108 575,216 511,623 184,396 105,548 287,866 184,781 153,223 92,684
Net Operating Income (NOI) 57,655 143,049 80,254 55,602 79,201 772,452 713,046 219,514 130,900 320,176 247,538 187,548 154,633
CAPEX 2,244 11,617 3,846 19,125 4,033 25,617 444,236 1,989 2,748 6,361 - 4,613 27,209
Occupancy (as of May 31, 2017) 100.0% 98.5% 100.0% 100.0% 100.0% 99.9% 100.0% 100.0% 100.0% 100.0% 100.0% 98.8% 95.7%
Adjusted NOI Yield 5.12% 5.31% 7.74% 4.75% 7.39% 6.45% 7.45% 5.18% 6.25% 4.34% 4.10% 6.19% 4.40%
41
Property Income and Occupancy (3/5)
(in thousand y en) B15 B17 B18 B20 B22 B25 B26 B27 B29 B30 B31 B32 B33
Pacif ic Marks
Shin-Uray asu
Akasaka
Hikawa
Building
Pacif ic Marks
Shibuy a
Koen-dori
Pacif ic Marks
Akasaka-
mitsuke
Pacif ic Marks
Shin-
Yokohama
Pacif ic Marks
Kawasaki
Hamamatsuc
ho 262
Building
Lila
Hijirizaka
Otsuka HT
Building
Pacif ic Marks
Shinjuku
South-gate
Pacif ic Marks
Nishi-Umeda
Pacif ic Marks
Higobashi
Nagoy a
Nishiki City
Building
Operating Rev enues 125,856 118,016 84,372 66,914 60,418 315,486 216,789 114,777 57,457 93,362 271,880 161,826 111,508
Rental Rev enues 107,877 114,114 84,372 59,414 53,346 289,780 190,306 103,809 50,929 87,565 238,394 144,268 102,899
Other Rental Rev enues 17,979 3,901 - 7,500 7,071 25,705 26,482 10,967 6,528 5,796 33,486 17,558 8,609
Operating Expenses 149,332 36,754 15,142 21,738 36,058 132,476 91,788 49,557 26,789 24,868 141,489 74,676 70,781
Property and other taxes 17,932 9,936 3,727 6,142 5,424 21,490 14,681 12,120 2,157 5,561 24,969 15,867 11,868
Other expenses 103,039 15,866 3,522 8,634 15,584 49,057 43,515 27,998 16,873 12,481 77,583 31,126 24,727
Property Mgmt Fees 29,631 7,370 2,510 3,786 6,395 21,186 22,066 15,150 4,975 4,279 28,629 10,173 11,275
Utilities 17,307 3,889 - 3,516 5,334 24,914 14,483 7,175 5,209 5,268 33,228 13,131 11,890
Casualty Insurance 283 84 44 44 93 267 158 116 57 52 357 184 174
Repairs & Maintenance 48,664 4,445 458 1,160 2,051 1,997 5,823 4,120 1,975 2,353 10,870 6,641 1,046
Other Rental Expenses 7,153 76 510 127 1,709 690 984 1,434 4,655 528 4,497 996 340
Depreciation 28,359 10,951 7,893 6,961 15,049 61,928 33,590 9,439 7,757 6,824 38,937 27,682 34,184
Prof it f rom Rental Activ ities -23,475 81,261 69,229 45,175 24,359 183,010 125,001 65,219 30,668 68,494 130,390 87,149 40,727
Net Operating Income (NOI) 4,884 92,212 77,122 52,137 39,409 244,938 158,591 74,658 38,426 75,318 169,327 114,832 74,912
CAPEX 135,801 12,666 - 847 8,405 3,330 - 518 3,604 8,722 17,481 48,766 1,851
Occupancy (as of May 31, 2017) - 100.0% 100.0% 100.0% 1 88.8% 97.2% 86.6% 100.0% 100.0% 99.1% 96.4% 100.0%
Adjusted NOI Yield 0.26% 5.62% 6.02% 4.73% 4.62% 4.97% 4.65% 5.44% 6.64% 6.14% 4.95% 5.04% 5.63%
(in thousand y en) B34 B35 B36 B37 B38 B39 B40 B41 B42 B43 B44 B45
Pacif ic Marks
Esaka
Pacif ic Marks
Sapporo
Kita-Ichijo
Shin-Sapporo
Center
Building
ARENA
TOWER
Yushima First
Building
Dogenzaka
Square
GRAND-
SQUARE
Shin-Sakae
GRAND-
SQUARE
Meieki-minami
Shiba 520
Building
Hirose-dori SE
BuildingSS30 LOOP-X・M
Of f ice
Total
Operating Rev enues 414,818 97,314 57,337 450,118 115,463 98,843 90,242 82,433 85,184 212,540 349,071 87,214 8,170,225
Rental Rev enues 381,600 87,718 51,559 399,139 102,710 90,501 82,172 75,311 79,577 185,816 331,529 81,174 7,528,950
Other Rental Rev enues 33,218 9,596 5,778 50,978 12,753 8,342 8,070 7,121 5,606 26,723 17,541 6,040 641,275
Operating Expenses 272,495 50,533 33,899 231,242 45,420 41,491 48,796 43,926 39,730 121,170 135,228 33,737 3,775,142
Property and other taxes 38,292 8,905 4,958 32,724 11,024 5,785 7,665 7,798 7,831 12,963 14 - 622,990
Other expenses 150,631 21,991 20,112 89,293 20,866 23,085 17,875 18,850 18,865 50,920 82,704 26,508 1,707,974
Property Mgmt Fees 58,864 8,803 7,300 46,582 7,206 8,427 9,291 8,558 10,588 21,299 58,493 13,609 733,236
Utilities 46,453 10,266 8,786 39,729 10,911 5,218 7,001 6,640 5,808 25,764 20,546 7,158 599,858
Casualty Insurance 606 119 68 497 131 77 116 110 98 229 826 104 9,743
Repairs & Maintenance 36,836 874 3,204 1,165 2,181 9,279 1,248 3,357 1,994 3,087 1,985 55 302,203
Other Rental Expenses 7,869 1,927 752 1,319 435 82 217 183 375 540 851 5,581 62,931
Depreciation 83,571 19,636 8,828 109,224 13,529 12,620 23,256 17,277 13,032 57,286 52,509 7,228 1,444,177
Prof it f rom Rental Activ ities 142,322 46,780 23,438 218,876 70,042 57,352 41,445 38,506 45,454 91,369 213,842 53,476 4,395,082
Net Operating Income (NOI) 225,893 66,417 32,266 328,100 83,572 69,972 64,701 55,783 58,486 148,656 266,351 60,705 5,839,260
CAPEX 118,715 490 2,286 11,558 10,258 362 - - 3,965 10,420 19,268 - 972,966
Occupancy (as of May 31, 2017) 95.0% 100.0% 86.8% 100.0% 100.0% 94.9% 94.2% 100.0% 83.3% 100.0% 98.4% 98.8% 98.3%
Adjusted NOI Yield 4.72% 7.44% 6.56% 6.93% 7.98% 6.10% 8.77% 9.17% 5.59% 8.28% 7.07% 4.66% 5.81%
42
Property Income and Occupancy (4/5)
(in thousand y en) C1 C2 C3 C4 C5 C6 C7 C9 C10 C11 C12 C13 C14
Shinjuku
Washington
Hotel Honkan
Toy oko Inn
Shinagawa-eki
Takanawa-
MZ BLD.
HOTEL
ROUTE-INN
Yokohama
Hotel JAL
City Naha
UUR Yotsuy a
Sanchome
Building
Yotsuy a 213
Buildingthe b roppongi
Toy oko Inn
Kawasaki
Ekimae
Toy oko Inn
Hiroshima
Heiwa-odori
Toy oko Inn
Naha
Kokusai-dori
Loisir Hotel &
Spa Tower
Naha
Urawa Roy al
Pines Hotel
Operating Rev enues 871,424 57,000 131,724 155,435 338,379 185,137 178,936 108,084 759,211 649,869
Rental Rev enues 871,424 57,000 131,724 141,049 338,379 183,622 164,443 105,931 759,211 649,869
Other Rental Rev enues - - - 14,385 - 1,514 14,492 2,153 - -
Operating Expenses 269,518 13,502 85,263 74,767 97,078 50,791 70,592 40,942 202,787 178,485
Property and other taxes 86,900 5,991 9,753 9,615 15,435 19,773 17,274 13,726 - -
Other expenses 77,698 619 25,469 18,672 7,103 12,882 21,666 10,866 (Note) (Note) (Note) 12,977 66,673
Property Mgmt Fees 26,053 540 7,768 6,333 1,020 3,555 6,101 1,200 900 36,804
Utilities 3,388 - 1,603 12,155 - - 11,407 2,151 - -
Casualty Insurance 1,097 79 168 182 306 198 201 102 1,658 896
Repairs & Maintenance 47,032 - 3,294 - 2,957 9,128 3,955 6,254 10,226 24,336
Other Rental Expenses 126 - 12,633 - 2,819 - - 1,157 192 4,636
Depreciation 104,919 6,891 50,041 46,480 74,539 18,135 31,651 16,349 189,810 111,812
Prof it f rom Rental Activ ities 601,905 43,497 46,460 80,667 241,301 134,346 108,343 67,141 44,525 41,087 15,170 556,423 471,383
Net Operating Income (NOI) 706,825 50,388 96,501 127,147 315,841 152,481 139,995 83,491 60,079 57,583 21,659 746,234 583,195
CAPEX 70,546 - 4,994 - 10,793 52,679 551 10,809 - - - 48,477 66,373
Occupancy (as of May 31, 2017) 99.9% 100.0% 93.7% 100.0% 100.0% 100.0% 1 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Adjusted NOI Yield 6.71% 5.37% 5.09% 5.40% 8.28% 7.28% 5.59% 4.78% 4.54% 5.47% 5.83% 7.13% 6.21%
(in thousand y en) D1 D4 D6 D7 D8 D9 D10 D11 D12 D13 D14 D15
Hotel
Total
T&G Higashi-
ikebukuro
Mansion
Komazawa
Court
Sky Court
Shiba-Daimon
Maison
Ukima
Narashino
Residence
Aprile
Shin-Ohgi
Ichibankan
UUR Court
Sapporo
Kita-Sanjo
UUR Court
Chiba Soga
Higashi-
kurume
Dormitory
Nanzan Court
Ichigokan
Nanzan Court
Nigokan
CLIO Bunky o
Koishikawa
Operating Rev enues 3,593,474 67,760 60,560 32,400 124,080 51,960 52,633 16,848 101,669
Rental Rev enues 3,560,927 63,458 60,560 32,400 124,080 51,960 52,511 16,848 96,743
Other Rental Rev enues 32,546 4,301 - - - - 122 - 4,926
Operating Expenses 1,141,220 44,176 12,934 16,433 35,466 13,628 31,183 3,130 49,507
Property and other taxes 195,399 2,680 3,893 1,724 8,697 4,062 4,786 1,308 5,092
Other expenses 256,651 15,599 816 3,604 1,456 625 (Note) 8,139 (Note) 193 (Note) (Note) 15,578
Property Mgmt Fees 92,017 8,082 604 324 1,236 513 1,928 168 7,385
Utilities 30,707 935 - - - - 2,166 - 21
Casualty Insurance 5,173 80 76 40 219 111 71 25 116
Repairs & Maintenance 107,186 4,760 135 3,240 - - 3,951 - 6,635
Other Rental Expenses 21,566 1,740 - - - - 20 - 1,419
Depreciation 689,169 25,897 8,225 11,104 25,312 8,940 18,258 1,627 28,835
Prof it f rom Rental Activ ities 2,452,253 23,583 47,625 15,966 88,613 38,331 77,930 21,449 16,023 13,717 26,131 11,622 52,162
Net Operating Income (NOI) 3,141,423 49,480 55,850 27,070 113,925 47,272 103,448 39,707 21,130 15,345 31,915 14,217 80,998
CAPEX 265,225 - 1,516 - - - 4,574 300 4,979 - 594 - -
Occupancy (as of May 31, 2017) 99.8% 97.7% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 99.3%
Adjusted NOI Yield 6.48% 4.91% 6.67% 4.62% 6.47% 8.32% 6.85% 6.23% 6.84% 6.41% 5.98% 6.34% 5.12%
43
Property Income and Occupancy (5/5)
(in thousand y en) D16 D17 D18 D19 D20 D21 D22 D23 D24 D25 D26 D27 D28
GRAND-
ROUGE
Sakae
GRAND-
ROUGE
Sakae II
MA Sendai
Building
UUR Court
Nagoy a
Meieki
UUR Court
Sapporo
Shinoro
Park Site
IZUMI
UUR Court
Osaka
Juso-
UUR Court
Kinshicho
UUR Court
Sapporo
Minami-Sanjo
GLAND-
ROUGE
Nakanoshima-
Glenpark
Umeda-kita
UUR Court
ShikiScent Hills
Operating Rev enues 44,659 37,571 168,418 46,056 33,106 29,065 52,542 120,812 112,208 53,941 189,916 93,432 43,152
Rental Rev enues 44,215 37,571 163,135 45,998 33,106 28,702 52,542 116,762 105,572 52,947 184,013 93,432 41,597
Other Rental Rev enues 443 - 5,282 58 - 362 - 4,049 6,635 993 5,902 - 1,555
Operating Expenses 30,868 20,285 93,989 27,657 17,182 16,632 36,913 49,055 63,222 32,746 79,191 26,067 11,857
Property and other taxes 3,138 2,627 10,043 3,010 3,952 1,596 3,945 5,958 7706 3480 10580 6966 -
Other expenses 9,643 1,224 35,364 6,347 1,975 6,596 14,100 18,748 23,605 10,323 29,526 3,476 6,614
Property Mgmt Fees 4,287 113 8,584 2,812 1,912 2,194 3,884 11,377 8,885 4,424 13,710 780 3,664
Utilities 816 - 2,956 930 - 747 - 1,981 7,312 664 1,526 - 494
Casualty Insurance 81 65 196 65 62 47 88 164 162 68 266 175 59
Repairs & Maintenance 3,313 976 9,938 2,539 - 1,628 10124 2,701 4209 2281 10769 2520 1408
Other Rental Expenses 1,145 69 13,688 - - 1,979 2 2,523 3,034 2,885 3,252 - 988
Depreciation 18,087 16,433 48,581 18,299 11,253 8,439 18,867 24,348 31,910 18,942 39,085 15,624 5,242
Prof it f rom Rental Activ ities 13,790 17,286 74,428 18,398 15,924 12,432 15,628 71,756 48,986 21,194 110,724 67,364 31,295
Net Operating Income (NOI) 31,877 33,719 123,010 36,698 27,177 20,872 34,496 96,105 80,896 40,137 149,809 82,989 36,538
CAPEX - - 2,632 - - 156 1248 952 1,123 - 8328 4373 515
Occupancy (as of May 31, 2017) 84.7% 100.0% 99.1% 100.0% 100.0% 95.6% 100.0% 96.9% 92.5% 100.0% 97.8% 100.0% 97.9%
Adjusted NOI Yield 4.07% 5.20% 7.17% 5.00% 6.26% 4.65% 4.41% 6.65% 7.91% 5.83% 5.83% 6.10% 5.16%
(in thousand y en) E1 E2 E3 E4 E5 E6 E7 E8 E9 E10 E11
Residential
Total
Lily color
Tohoku
Branch
KDDI Fuchu
Building
Tsubogawa
Square
Building
THE PLACE
of TOKYO
Logistics
Higashi-
Ohgishima
MT Ariake
Center
Building I&II
Quartz TowerShin-Narashino
Logistics Center
Kawagoe
Logistics
Center
Asuto
Nagamachi
Dental Clinic
Shin-Narashino
Logistics Center II
Others
Total
Operating Rev enues 1,722,304 285,886 1,507,131
Rental Rev enues 1,687,670 251,467 1,455,302
Other Rental Rev enues 34,634 34,419 51,828
Operating Expenses 769,935 146,213 463,965
Property and other taxes 109,171 18691 83,224
Other expenses 218,441 (Note) (Note) 77,283 (Note) (Note) (Note) (Note) (Note) (Note) (Note) (Note) 121,009
Property Mgmt Fees 88,277 30,497 49,011
Utilities 20,552 39,022 52,202
Casualty Insurance 2,583 366 1,839
Repairs & Maintenance 74,277 3339 6,850
Other Rental Expenses 32,750 4,057 11,105
Depreciation 442,322 50,238 259,731
Prof it f rom Rental Activ ities 952,369 35,598 117,518 139,672 83,070 90,442 190,609 91,330 55,503 165,008 32,154 42,257 1,043,165
Net Operating Income (NOI) 1,394,691 60,386 150,862 189,911 109,466 119,949 208,986 107,596 68,316 202,107 38,167 47,145 1,302,896
CAPEX 31,295 - - - - - - - 1,668 - - - 1,668
Occupancy (as of May 31, 2017) 98.5% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0%
Adjusted NOI Yield 6.03% 5.91% 6.15% 9.18% 6.27% 5.68% 5.24% 3.79% 5.36% 4.86% 5.77% 5.12% 5.61%
Properties (1/3)(as of July 14, 2017)
44
(JPY Mn) Ratio Period Date
A1 Himony a Shopping Center 23 Wards of Toky o Meguro-ku, Toky o 15,300 2.5% 5,249.86 27,032.50 26,655.66 10 1 2003/12/25
A2 Joy Park Izumigaoka Other Regions (Osaka) Sakai, Osaka 6,770 1.1% 10,368.45 29,250.71 13,611.24 10 1 2003/12/22
A3 Daimaru Peacock Ashiy a Kawanishi Other Regions (Osaka) Ashiy a, Hy ogo 769 0.1% 3,455.30 1,488.28 1,558.80 6 1 2003/12/22
A4 Re-LAND Shopping Center Tokyo Metropolitan Area Funabashi, Chiba 5,200 0.8% 5,198.20 12,944.65 12,968.84 13 2 2004/09/17
A5 AEON MALL Uki Other Regions (Others) Uki, Kumamoto 11,100 1.8% 173,498.31 63,058.78 72,073.39 7.8 3 2004/12/03
A6 TENJIN LUCE Other Regions (Others) Fukuoka, Fukuoka 6,500 1.0% 1,138.66 5,393.09 4,194.68 2 5 2006/04/14
A7 Yamada Denki Tecc Land Sakai Honten Other Regions (Osaka) Sakai, Osaka 3,210 0.5% 10,702.86 8,637.63 8,637.63 8 5 2006/04/28
A8 Miy amae Shopping Center Tokyo Metropolitan Area Kawasaki, Kanagawa 5,312 0.9% 6,937.54 17,338.54 10,487.92 17 7 2007/02/19
A9 KONAMI SPORTS CLUB Korigaoka Other Regions (Osaka) Hirakata, Osaka 2,040 0.3% 4,120.00 6,381.40 8,627.58 11 8 2007/06/29
A10 ACTIOLE Minami-ikebukuro 23 Wards of Toky o Toshima-ku, Toky o 3,760 0.6% 320.39 2,265.15 2,081.50 14 8 2007/09/27
A11 Tip's Machida Building Tokyo Metropolitan Area Machida, Toky o 4,100 0.7% 1,596.82 8,075.04 6,710.19 18 9 2007/12/27
A12 Daiei Takarazuka Nakay ama Other Regions (Osaka) Takarazuka, Hy ogo 4,284 0.7% 16,330.14 16,729.60 16,729.60 9 9 2008/01/30
A13 maricom-ISOGO / SYSTEM PLAZA YOKOHAMA (Site) Tokyo Metropolitan Area Yokohama, 6,883 1.1% 53,363.57 － 30,453.73 － 9 2008/02/18
A14 ACTIOLE Kannai Tokyo Metropolitan Area Yokohama, 2,410 0.4% 375.17 2,238.82 1,938.56 19 10 2008/06/30
A15 Shinsaibashi OPA Honkan Other Regions (Osaka) Osaka, Osaka 22,800 3.7% 2,430.23 25,865.61 27,025.42 12 15 2010/12/01
A19 Albore Jingumae 6 Cental Wards of Tokyo Shibuy a-ku, Toky o 1,580 0.3% 308.02 816.60 931.14 14.6 15 2010/12/01
A20 Albore Sendai Other Regions (Others) Sendai, Miy agi 2,590 0.4% 736.01 4,082.94 3,147.29 8 15 2010/12/01
A21 Mallage Kashiwa Tokyo Metropolitan Area Kashiwa, Chiba 7,040 1.1% 79,484.47 54,689.28 41,766.67 9 15 2010/12/01
A23 Ito-Yokado Owariasahi Other Regions (Nagoya) Owariasahi, Aichi 4,840 0.8% 34,612.39 56,371.77 54,606.34 11 15 2010/12/01
A24 Yokohama Kariba Shopping Center Tokyo Metropolitan Area Yokohama, 2,500 0.4% 7,093.66 10,628.44 11,345.09 12 15 2010/12/01
A25 Luz Jiy ugaoka 23 Wards of Toky o Meguro-ku, Toky o 5,090 0.8% 828.70 2,771.59 2,283.47 12 16 2011/06/15
A26 ACTIOLE Ichikawa Tokyo Metropolitan Area Ichikawa, Chiba 3,350 0.5% 749.42 4,452.39 3,927.49 10 16 2011/06/15
A27 VIVAHOME Yokohama Aoba (Site) Tokyo Metropolitan Area Yokohama, 2,600 0.4% 9,193.00 － 9,193.00 － 16 2011/10/31
A28 Yamada Denki Tecc Land Aoba (Site) Tokyo Metropolitan Area Yokohama, 2,150 0.3% 7,594.00 － 7,650.63 － 17 2012/05/18
A29 Yodobashi Camera Multimedia Kichijoji Tokyo Metropolitan Area Musashino, Toky o 28,000 4.5% 3,582.39 37,932.95 37,932.95 14 19 2013/03/18
A30 Yamada Denki Tecc Land New Matsudo Honten Tokyo Metropolitan Area Matsudo, Chiba 5,150 0.8% 7,311.98 17,461.22 17,561.23 11 19 2013/03/18
A31 Tenjin Lof t Building Other Regions (Others) Fukuoka, Fukuoka 4,350 0.7% 1,947.80 10,594.19 7,730.09 1 20 2013/11/29
A32 Narumi Shopping Center (Site) Other Regions (Nagoya) Nagoy a, Aichi 6,460 1.0% 60,747.02 － 60,419.26 － 21 2014/04/08
A33 Plussing Wav e Enoshima Tokyo Metropolitan Area Fujisawa, Kanagawa 1,800 0.3% 2,449.00 3,471.69 3,155.64 14 22 2014/08/29
A34 LIFE Nishikujo (Site) Other Regions (Osaka) Osaka, Osaka 1,760 0.3% 3,252.76 － 3,252.76 － 23 2015/03/02
A35 LIFE Tamatsukuri (Site) Other Regions (Osaka) Osaka, Osaka 1,880 0.3% 2,391.44 － 2,391.44 － 23 2015/03/02
A36 Granbell Ginza Building 6 Cental Wards of Tokyo Chuo-ku, Toky o 2,621 0.4% 231.00 1,646.50 1,352.35 10 24 2015/06/30
A37 UUR Tenjin Nishi-dori Building Other Regions (Others) Fukuoka, Fukuoka 5,500 0.9% 466.76 1,486.52 1,564.70 2 24 2015/07/15
A38 Luz Shonan Tsujido Tokyo Metropolitan Area Fujisawa, Kanagawa 3,938 0.6% 3,658.25 17,889.43 10,454.22 14 24 2015/09/30
A39 455 Ueno Building 23 Wards of Toky o Taito-ku, Toky o 3,000 0.5% 159.59 1,234.99 1,167.63 12 25 2015/12/04
A40 KURURU Tokyo Metropolitan Area Fuchu, Toky o 9,285 1.5% 7,266.41 59,361.08 13,292.30 6 26 2016/09/01
A41 K’s Denki Nagoy a-kita Other Regions (Nagoya) Toy oy ama, Aichi 1,750 0.3% 7,461.97 4,733.74 4,733.74 8 27 2016/12/01
B1 T&G Hamamatsucho Building 6 Cental Wards of Tokyo Minato-ku, Toky o 2,257 0.4% 453.81 3,296.58 2,420.85 12 1 2003/12/26
B2 SK Nagoy a Building Other Regions (Nagoya) Nagoy a, Aichi 5,400 0.9% 1,361.96 11,795.38 8,708.52 11 1 2003/12/26
B3 Fukuoka Eartheon Building Other Regions (Others) Fukuoka, Fukuoka 2,080 0.3% 1,358.91 6,079.35 4,934.40 1 1 2003/12/26
B4 Marumasu Kojimachi Building 6 Cental Wards of Tokyo Chiy oda-ku, Toky o 2,350 0.4% 703.24 5,218.55 2,578.84 11 1 2004/03/29
B5 Rokubancho K Building 6 Cental Wards of Tokyo Chiy oda-ku, Toky o 2,150 0.3% 689.70 4,031.14 4,031.14 14 1 2004/03/30
B6 Shin-Osaka Central Tower（of f ice portion） Other Regions (Osaka) Osaka, Osaka 14,279 2.3% 7,265.79 58,882.64 27,828.96 7 3 2004/12/02
Acquisition
Reta
il P
ropert
yO
ffic
e
Acquisition Price Site Area
(sqm)
Floor Area
(sqm)
Rentable Area
(sqm)
PML
（%）Ty pe No. Property Name Area Location
45
(JPY Mn) Ratio Period Date
B7 Kawasaki Toshiba Building Tokyo Metropolitan Area Kawasaki, Kanagawa 19,200 3.1% 8,615.20 51,254.06 36,118.31 7 3 2004/12/20
(A13) maricom-ISOGO / SYSTEM PLAZA YOKOHAMA (Site) Tokyo Metropolitan Area Yokohama, 5,021 0.8% － － 22,214.65 － 9 2008/02/18
B8 UUR Toy ocho Building 23 Wards of Toky o Koto-ku, Toky o 8,500 1.4% 3,262.50 10,768.11 7,540.30 13 10 2008/06/30
B9 FOUR SEASONS BLDG 6 Cental Wards of Tokyo Shinjuku-ku, Toky o 4,200 0.7% 690.93 6,318.81 5,000.54 11 13 2009/12/25
B10 Hitachi High-Tech Building 6 Cental Wards of Tokyo Minato-ku, Toky o 14,800 2.4% 3,464.39 22,952.71 15,781.64 15 15 2010/12/01
B11 Pacif ic Marks Shinjuku Parkside 6 Cental Wards of Tokyo Shinjuku-ku, Toky o 12,100 1.9% 3,201.80 19,802.22 10,947.34 14.8 15 2010/12/01
B13 Pacif ic Marks Tsukishima 6 Cental Wards of Tokyo Chuo-ku, Toky o 6,080 1.0% 3,302.07 14,507.92 9,336.27 14 15 2010/12/01
B14 Pacif ic Marks Yokohama East Tokyo Metropolitan Area Yokohama, 7,050 1.1% 2,525.41 15,387.49 10,744.59 15 15 2010/12/01
B17 Akasaka Hikawa Building 6 Cental Wards of Tokyo Minato-ku, Toky o 3,290 0.5% 1,328.93 4,795.06 3,438.20 14 15 2010/12/01
B18 Pacif ic Marks Shibuy a Koen-dori 6 Cental Wards of Tokyo Shibuy a-ku, Toky o 2,570 0.4% 428.62 1,972.43 1,972.43 12 15 2010/12/01
B20 Pacif ic Marks Akasaka-mitsuke 6 Cental Wards of Tokyo Minato-ku, Toky o 2,210 0.4% 390.86 1,895.87 1,675.13 13 15 2010/12/01
B22 Pacif ic Marks Shin-Yokohama Tokyo Metropolitan Area Yokohama, 1,710 0.3% 475.00 4,141.89 3,110.72 16 15 2010/12/01
B25 Pacif ic Marks Kawasaki Tokyo Metropolitan Area Kawasaki, Kanagawa 9,890 1.6% 1,183.52 10,694.91 7,382.14 17 15 2010/12/01
B26 Hamamatsucho 262 Building 6 Cental Wards of Tokyo Minato-ku, Toky o 6,840 1.1% 1,401.61 8,331.90 6,162.85 14 15 2010/12/01
B27 Lila Hijirizaka 6 Cental Wards of Tokyo Minato-ku, Toky o 2,750 0.4% 1,474.05 6,598.52 4,255.02 12 15 2010/12/01
B29 Otsuka HT Building 23 Wards of Toky o Toshima-ku, Toky o 1,160 0.2% 455.94 2,317.67 1,774.56 13 15 2010/12/01
B30 Pacif ic Marks Shinjuku South-gate 6 Cental Wards of Tokyo Shinjuku-ku, Toky o 2,460 0.4% 257.87 2,038.70 1,723.03 12 15 2010/12/01
B31 Pacif ic Marks Nishi-Umeda Other Regions (Osaka) Osaka, Osaka 6,860 1.1% 2,053.30 16,142.54 11,039.51 10 15 2010/12/01
B32 Pacif ic Marks Higobashi Other Regions (Osaka) Osaka, Osaka 4,570 0.7% 1,284.23 9,596.62 7,623.57 12 15 2010/12/01
B33 Nagoy a Nishiki City Building Other Regions (Nagoya) Nagoy a, Aichi 2,670 0.4% 1,342.54 8,219.53 5,609.97 14 15 2010/12/01
B34 Pacif ic Marks Esaka Other Regions (Osaka) Suita, Osaka 9,590 1.5% 3,929.31 33,316.53 20,005.03 9 15 2010/12/01
B35 Pacif ic Marks Sapporo Kita-Ichijo Other Regions (Others) Sapporo, Hokkaido 1,790 0.3% 987.04 6,048.97 4,727.65 1 15 2010/12/01
B36 Shin-Sapporo Center Building Other Regions (Others) Sapporo, Hokkaido 987 0.2% 1,940.08 3,725.13 2,797.03 2 15 2010/12/01
B37 ARENA TOWER Tokyo Metropolitan Area Yokohama, 9,500 1.5% 2,733.00 24,412.67 17,967.46 10 16 2011/06/16
B38 Yushima First Building 23 Wards of Toky o Bunky o-ku, Toky o 2,100 0.3% 1,120.85 6,165.88 4,558.77 13 18 2012/08/29
B39 Dogenzaka Square 6 Cental Wards of Tokyo Shibuy a-ku, Toky o 2,300 0.4% 488.93 3,227.62 2,233.57 16 18 2012/11/22
B40 GRAND-SQUARE Shin-Sakae Other Regions (Nagoya) Nagoy a, Aichi 1,480 0.2% 1,294.88 5,333.51 4,578.93 10 21 2014/02/28
B41 GRAND-SQUARE Meieki-minami Other Regions (Nagoya) Nagoy a, Aichi 1,220 0.2% 1,012.06 5,017.30 4,003.05 10 21 2014/02/28
B42 Shiba 520 Building 6 Cental Wards of Tokyo Minato-ku, Toky o 2,100 0.3% 727.86 3,781.22 2,831.94 13 21 2014/03/28
B43 Hirose-dori SE Building Other Regions (Others) Sendai, Miy agi 3,600 0.6% 2,146.31 10,396.94 8,235.87 8 22 2014/06/13
B44 SS30 (of f ice portion) Other Regions (Others) Sendai, Miy agi 11,521 1.9% 15,542.84 110,955.68 42,867.59 ①2 ②6 ③1 27 2017/03/30
B45 LOOP-X・M 6 Cental Wards of Tokyo Minato-ku, Toky o 11,200 1.8% 5,491.44 31,583.38 21,592.14 ①7 ②6 27 2017/04/26
C1 Shinjuku Washington Hotel Honkan 6 Cental Wards of Tokyo Shinjuku-ku, Toky o 21,140 3.4% 6,215.31 59,985.37 53,363.11 9 1 2003/12/22
(B6) Shin-Osaka Central Tower (hotel portion) Other Regions (Osaka) Osaka, Osaka 9,721 1.6% － － 18,149.63 － 3 2004/12/02
C2 Toy oko Inn Shinagawa-eki Takanawa-guchi 6 Cental Wards of Tokyo Minato-ku, Toky o 1,884 0.3% 482.10 2,928.94 3,088.85 17 3 2005/02/18
C3 MZ BLD. Tokyo Metropolitan Area Hachioji, Toky o 3,800 0.6% 1,304.44 7,708.88 6,670.21 13 9 2008/04/10
C4 HOTEL ROUTE-INN Yokohama Bashamichi Tokyo Metropolitan Area Yokohama, 4,720 0.8% 970.83 6,610.51 7,139.44 19 10 2008/06/30
C5 Hotel JAL City Naha Other Regions (Others) Naha, Okinawa 7,650 1.2% 3,573.31 13,655.23 13,701.80 5 16 2011/10/25
C6 UUR Yotsuy a Sanchome Building 6 Cental Wards of Tokyo Shinjuku-ku, Toky o 4,200 0.7% 1,053.16 7,682.82 7,854.86 14 17 2011/12/26
C7 Yotsuy a 213 Building 6 Cental Wards of Tokyo Shinjuku-ku, Toky o 5,020 0.8% 1,264.94 7,884.53 7,550.16 13 19 2013/03/18
C9 the b roppongi 6 Cental Wards of Tokyo Minato-ku, Toky o 3,500 0.6% 482.37 3,138.82 2,710.90 12 21 2014/05/01
C10 Toy oko Inn Kawasaki Ekimae Shiy akusho-dori Tokyo Metropolitan Area Kawasaki, Kanagawa 2,655 0.4% 639.19 4,785.93 4,874.28 14.5 24 2015/08/31
C11 Toy oko Inn Hiroshima Heiwa-odori Other Regions (Others) Hiroshima, Hiroshima 2,113 0.3% 660.40 4,345.24 4,357.75 7 24 2015/08/31
Acquisition
Off
ice
Hote
l
Ty pe No. Property Name Area LocationAcquisition Price Site Area
(sqm)
Floor Area
(sqm)
Rentable Area
(sqm)
PML
（%）
Properties (2/3)(as of July 14, 2017)
46
(JPY Mn) Ratio Period Date
C12 Toy oko Inn Naha Kokusai-dori Miebashi-eki Other Regions (Others) Naha, Okinawa 745 0.1% 384.93 1,566.12 1,529.47 2 24 2015/08/31
C13 Loisir Hotel & Spa Tower Naha Other Regions (Others) Naha, Okinawa 20,000 3.2% 11,850.24 45,731.16 45,731.16 ①7 ②6 25 2016/02/05
C14 Urawa Roy al Pines Hotel Tokyo Metropolitan Area Saitama, Saitama 17,500 2.8% 7,418.83 51,071.32 31,129.86 10 25 2016/04/01
(B44) SS30 (hotel portion) Other Regions (Others) Sendai, Miy agi 6,679 1.1% － － 24,814.24 － 27 2017/03/30
D1 T&G Higashi-ikebukuro Mansion 23 Wards of Toky o Toshima-ku, Toky o 2,021 0.3% 398.82 3,300.18 2,603.22 12 1 2003/12/26
D4 Komazawa Court 23 Wards of Toky o Setagay a-ku, Toky o 1,680 0.3% 2,943.33 3,580.44 3,741.17 11 1 2003/12/26
D6 Sky Court Shiba-Daimon 6 Cental Wards of Tokyo Minato-ku, Toky o 1,175 0.2% 233.66 1,486.38 1,486.38 17 2 2004/10/15
D7 Maison Ukima 23 Wards of Toky o Kita-ku, Toky o 3,530 0.6% 6,456.64 12,691.43 12,691.43 14.6 2 2004/10/26
D8 Narashino Residence Tokyo Metropolitan Area Funabashi, Chiba 1,140 0.2% 3,948.67 6,840.86 6,840.86 10 2 2004/10/26
D9 Aprile Shin-Ohgi Ichibankan Other Regions (Osaka) Kobe, Hy ogo 3,031 0.5% 3,329.45 12,700.44 12,700.44 8 3 2005/04/13
D10 UUR Court Sapporo Kita-Sanjo Other Regions (Others) Sapporo, Hokkaido 1,278 0.2% 1,249.45 6,588.72 4,790.50 2 5 2006/03/16
D11 UUR Court Chiba Soga Tokyo Metropolitan Area Chiba, Chiba 620 0.1% 1,990.13 2,931.14 2,931.14 14 5 2006/02/08
D12 Higashi-kurume Dormitory Shinkan Tokyo Metropolitan Area Higashikurume, 480 0.1% 2,635.52 1,397.61 1,397.61 10 5 2006/02/08
D13 Nanzan Court Ichigokan Other Regions (Nagoya) Nagoy a, Aichi 1,070 0.2% 2,423.12 3,551.60 3,576.74 12 5 2006/03/30
D14 Nanzan Court Nigokan Other Regions (Nagoya) Nagoy a, Aichi 450 0.1% 1,137.18 1,762.40 1,890.51 14 5 2006/03/30
D15 CLIO Bunky o Koishikawa 23 Wards of Toky o Bunky o-ku, Toky o 3,170 0.5% 814.54 5,871.77 4,097.51 14.5 5 2006/04/28
D16 GRAND-ROUGE Sakae Other Regions (Nagoya) Nagoy a, Aichi 1,570 0.3% 1,009.16 3,912.49 3,697.38 13 6 2006/11/30
D17 GRAND-ROUGE Sakae II Other Regions (Nagoya) Nagoy a, Aichi 1,300 0.2% 674.34 3,172.34 2,579.89 13 9 2007/12/26
D18 MA Sendai Building Other Regions (Others) Sendai, Miy agi 3,440 0.6% 3,656.44 12,642.98 11,525.36 11 10 2008/09/24
D19 UUR Court Nagoy a Meieki Other Regions (Nagoya) Nagoy a, Aichi 1,473 0.2% 639.17 3,207.39 2,958.45 16 10 2008/09/30
D20 UUR Court Sapporo Shinoro Ichibankan Other Regions (Others) Sapporo, Hokkaido 870 0.1% 3,340.48 6,255.74 6,271.74 3 10 2008/11/11
D21 Park Site IZUMI Other Regions (Nagoya) Nagoy a, Aichi 900 0.1% 336.55 2,196.97 2,067.95 12 10 2008/11/21
D22 UUR Court Osaka Juso-honmachi Other Regions (Osaka) Osaka, Osaka 1,570 0.3% 1,266.32 4,166.73 3,650.00 16 11 2009/02/26
D23 UUR Court Kinshicho 23 Wards of Toky o Koto-ku, Toky o 2,900 0.5% 924.27 6,890.13 5,460.39 14.8 16 2011/06/15
D24 UUR Court Sapporo Minami-Sanjo Premier Tower Other Regions (Others) Sapporo, Hokkaido 2,050 0.3% 1,077.92 10,224.31 7,763.23 1 18 2012/06/28
D25 GRAND-ROUGE Nakanoshima-minami Other Regions (Osaka) Osaka, Osaka 1,380 0.2% 405.74 3,741.79 3,090.36 15 20 2013/06/25
D26 Glenpark Umeda-kita Other Regions (Osaka) Osaka, Osaka 5,150 0.8% 2,156.35 14,340.44 12,730.60 15.5 22 2014/08/29
D27 UUR Court Shiki Tokyo Metropolitan Area Shiki, Saitama 2,730 0.4% 6,132.03 9,885.83 9,885.83 11 24 2015/09/18
D28 Scent Hills Other Regions (Osaka) Osaka, Osaka 1,300 0.2% 817.52 3,607.14 2,792.81 13 27 2016/12/01
E1 Lily color Tohoku Branch Other Regions (Others) Sendai, Miy agi 2,050 0.3% 5,457.02 8,693.79 9,271.16 11 5 2006/05/29
E2 KDDI Fuchu Building Tokyo Metropolitan Area Fuchu, Toky o 4,920 0.8% 5,479.15 14,165.71 14,490.92 11 19 2013/05/16
E3 Tsubogawa Square Building Other Regions (Others) Naha, Okinawa 4,150 0.7% 5,294.63 14,742.80 10,570.98 8 20 2013/11/01
E4 THE PLACE of TOKYO 6 Cental Wards of Tokyo Minato-ku, Toky o 3,500 0.6% 645.87 3,105.31 3,212.21 13 21 2014/05/01
E5 Logistics Higashi-Ohgishima Tokyo Metropolitan Area Kawasaki, Kanagawa 4,233 0.7% 28,351.30 41,949.12 42,113.83 12 22 2014/10/02
E6 MT Ariake Center Building I&II 23 Wards of Toky o Koto-ku, Toky o 8,000 1.3% 8,307.00 22,917.94 23,934.32 ①12 ②13 22 2014/11/25
E7 Quartz Tower 6 Cental Wards of Tokyo Sibuy a-ku, Toky o 5,700 0.9% 354.27 2,720.38 2,940.22 7 24 2015/11/13
E8 Shin-Narashino Logistics Center Tokyo Metropolitan Area Narashino, Chiba 2,555 0.4% 6,968.26 13,268.65 12,909.90 10 24 2015/08/07
E9 Kawagoe Logistics Center Tokyo Metropolitan Area Kawagoe, Saitama 7,550 1.2% 32,665.82 47,284.22 40,060.76 9 26 2016/06/17
E10 Asuto Nagamachi Dental Clinic Other Regions (Others) Sendai, Miy agi 1,200 0.2% 2,009.14 1,554.09 1,554.09 8 26 2016/08/29
E11 Shin-Narashino Logistics Center II Tokyo Metropolitan Area Narashino, Chiba 2,590 0.4% 7,870.01 12,578.45 12,598.46 9 27 2017/01/31
621,559 100.0% 812,697.64 1,614,353.13 1,443,510.75 6.83
(Notes)
1. In principle, “Site Area”, “Floor Area”, “Rentable Area” and “PML” show those at the point of May 31, 2017.
2. PML of "B44 SS30", "B45 LOOP-X・M", "C13 Loisir Hotel & Spa Tower Naha”, and “E6 MT Ariake Center Building I&II” shows PML of each building below.
B44: ①Of f ice building ②Fitness club building ③Hotel building / B45: ①LOOP-X ②LOOP-M / C13: ①Main Building ②Anne / E6: ①Building 1 ②Building 2
3. “PML” shown on the line of “Total” indicates PML of UUR’s whole portf olio.
Re
sid
en
tia
l P
rop
ert
yO
the
rs
AcquisitionRentable Area
(sqm)
PML
（%）
Ho
tel
Area LocationAcquisition Price Site Area
(sqm)
Floor Area
(sqm)Ty pe No. Property Name
Properties (3/3)(as of July 14, 2017)
Overview of Unitholders and Unit Price
47
Trend of Composition of Unitholders
31-May-17
30-Nov-16
Number of unitholders Number of units issued and outstanding
23,034 3,055,087
22,809 2,953,022
13.5 11.0 9.4 7.9 7.0 7.3 7.1 6.4 5.9 5.8
56.6 55.3 58.4 61.4 58.5 64.0 65.1 62.9 61.2 62.8
3.4 3.3 3.1 3.0 2.7 2.7 2.7
2.6 2.4 2.2
26.3 30.4 29.1 27.7 26.8 26.0 25.1 28.1 30.5 29.2
0%
20%
40%
60%
80%
100%
18th FP
('12/11)
19th FP
('13/5)
20th FP
('13/11)
21st FP
('14/5)
22nd FP
('14/11)
23rd FP
('15/5)
24th FP
('15/11)
25th FP
('16/5)
26th FP
('16/11)
27th FP
('17/5)
Foreign Investors
Other Domestic Corp.
Financial Institutions
Individual
Trend of Composition of Unitholders
Rank UnitholderNumber of
Units Held
Percentage
of Unit Held
1 Japan Trustee Services Bank, Ltd. (trust account) 690,056 22.6%
2 The Master Trust Bank of Japan ,Ltd. (trust account) 328,493 10.8%
3 Trust & Custody Services Bank, Ltd. (securities investment trust account) 228,685 7.5%
4 The Nomura Trust and Banking Co., Ltd. (investment trust account) 125,126 4.1%
5 STATE STREET BANK WEST CLIENT-TREATY 505234 85,485 2.8%
6 STATE STREET BANK-WEST PENSION FUND
CLIENTS-EXEMPT 50523359,217 1.9%
7 NOMURA BANK (LUXEMBOURG) S.A. 51,456 1.7%
8 STATE STREET BANK AND TRUST COMPANY 505012 35,566 1.2%
9 Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. 33,124 1.1%
10 STATE STREET BANK AND TRUST COMPANY 505223 32,585 1.1%
11 The Chugoku Bank, Ltd. 28,728 0.9%
12 SIX SIS FOR SWISS NATIONAL BANK 26,652 0.9%
13 STATE STREET BANK AND TRUST COMPANY 505225 24,139 0.8%
14 BARCLAYS BANK PLC A/C CLIENT SEGREGATED A/C PB
CAYMAN CLIENTS21,969 0.7%
15 DFA INTERNATIONAL REAL ESTATE SECURITIES PORTFOLIO 21,340 0.7%
Total 1,792,621 58.7%
Trend of Composition of Unitholders(unit)
(Notes) 1. Source: QUICK
2. UUR’s unit price and trading v olume f rom Dec. 22, 2003 to July 12, 2017.
shown multiplied by 6.
3. In connection with the unit sprit, bef ore Nov ember 25, 2010（the last trade day in the unit price bef ore the unit sprit in Toky o Stock Exchange), unit price are shown div ided by 6, and trading v olume are
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
¥0
¥50,000
¥100,000
¥150,000
¥200,000
¥250,000Volume (right axis) Price (left axis)
Our efforts in Environmental Issues
48
Environmental Policies
United Urban Investment Corporation, aware of its corporate social responsibility, will do its utmost to
contribute to sustainable prosperity of our society under the considerations on the environment and
efforts for reduction of environmental burdens.
1. Energy saving and measures for global warming
United Urban Investment Corporation will proactively promote efficient use of resources and
energy and contribute toward realization of a low-carbon society through introducing such
technologies and systems as being friendly to the environment.
2. Reduction of environmental burdens
United Urban Investment Corporation will make efforts for reduction of environmental burdens and
realization of a recycling society through such measures as saving water, reducing (curb of the
waste), re-using and recycling together with reduction of carbon emission.
3. Compliance with Environment-Related Laws and Regulations
In compliance with the environment-related laws and regulations, United Urban Investment
Corporation will strive to preserve the environment standing.
4. Promotion of Environmental Communication
United Urban Investment Corporation will work to proactively disclose its initiatives on the
environment and other environment-related information and collaborate with our varied
stakeholders through communication with the society.
5. Environmental education and enlightenment
Through education and enlightenment on the environment, United Urban Investment Corporation
will work to improve the environmental awareness
CASBEE for Market Promotion
CASBEE is a tool for assessing and rating the environmental performance of buildings and built
environment.
CASBEE for Market Promotion was developed with an intention to be widely used among property
market participants, since conventional CASBEE rating schemes had been used mainly as tools for
“Design for Environment”. Compared with other CASBEE rating schemes, CASBEE for Market
Promotion is a shorter version covering common metrics examined by UNEP SBCI and considers
alignment with other internationally recognized certification schemes, e.g., LEED.
The “Global Real Estate Sustainability Benchmark (GRESB)” is a benchmark developed by a group
of leading European pension funds. It evaluates the sustainability performance of real estate
companies and funds, and is becoming a de facto standard among major European, American and
Asian institutional investors and is utilized in their investment decision-making processes.
United Urban has participated in the GRESB survey since 2012, and got the “Green Star” rating in
the GRESB survey held in two consecutive years from 2015 to 2016. It is granted to entities which
have exhibited excellence in both dimensions of “Management and Policy” and “Implementation and
Measurement.”
Acquisition of “Green Star” rating in GRESB Survey
B17 Akasaka Hikawa Building
B11 Pacific Marks Shinjuku Parkside B14 Pacific Marks Yokohama East B20 Pacific Marks Akasaka-mitsuke B22 Pacific Marks Shin-Yokohama B34 Pacific Marks Esaka
Rank S ★ ★ ★ ★ ★ (1 property)
Rank A ★ ★ ★ ★ (5 properties)
DBJ Green Building Certification
Sustainability Objectives
United Urban has established its objectives on sustainability as follows; As an owner of large-scale
business facilities whose greenhouse effect gas emissions are assumed to be high, United Urban
sets a target to reduce the “specific energy consumption rate” by 1% per annum on average for 5
years (“Specific energy consumption rate” is calculated by the factors like energy consumption,
floor space, etc.).
Untied Urban will accomplish the above mentioned target by such means as introducing highly-
efficient equipments suitable to each facility on replacement of air-conditioners or lighting
equipments.
“DBJ Green Building Certification” is a comprehensive evaluation system for real estate properties
with high environmental and social awareness by Development Bank of Japan Inc. (DBJ). DBJ
conducts an assessment based on the original scoring model and certifies real estate properties
with five ranks of certification according to the score from the assessment.
"ARENA TOWER“, "Tsubogawa
Square Building" and “Logistics
Higashi-Ohgishima” owned by
United Urban acquired "three stars"
(properties with excellent
environmental & social awareness).
【The Compliance Committee】(the “Committee” within this framework)
・The Committee is not an organ for making resolutions or decisions, but has been
established for the purpose of making specific recommendations to the Board of
Directors, not only about compliance with laws and regulations but about a broad range
of matters concerning the code of professional conduct, internal audit etc.
・Committee members : 1 chairperson (CCO), and 3 members (CEO, General Manager of
Corporate Operation Team, and an outside expert (An Attorney at Law))
・Method of deliberation : After a resolution by the Investment Committee, the item of the
agenda shall be deliberated by the Committee from the viewpoint of compliance together
with internal audit etc.
Effe
ctiv
ely
en
ac
ted
Res
olu
tion
by th
e In
ve
stm
en
t
Co
mm
ittee
Submission
upon
approval a. If there are questions or doubt
b. Matters to be resolved by the
Board of Directors
Approved
Not enacted
Rep
ortin
g
an
d
su
bm
issio
n
for a
pp
rov
al
Transactions with interested parties,
etc. that exceed certain amount
Approved and outside of subjects for prior
consent of the Investment Corporation
If there are no compliance issues and no subjects for
prior consent of the Investment Corporation
Draft plan for the
acquisition or sale
of assets
Submit
Plan for responding to
circumstances that are
not assumed in the
investment and
management plan
Submit
Transactions with interested parties, etc. that exceed
certain amount (however, without compliance issues)
De
libe
ratio
n b
y th
e C
om
plia
nc
e
Co
mm
ittee
Deliberation by the
Board of Directors Prio
r co
ns
en
t by th
e
Inve
stm
en
t
Co
rpo
ratio
n
【 Flow chart for decision-making structure relating to internal control for investment and management conducted by JRA 】
■ the Management Structure and System of JRA
JRA fully recognizes that insufficiencies in carrying out strict compliance may undermine investors’ confidence in financial instruments and exchange markets and the management bases of
United Urban and JRA and considers the thorough execution of compliance as the basic principle of management. The Board of Directors ,positioned at the top, the President and Chief
Executive Officer(“CEO”), the Compliance Committee, and the Chief Compliance Officer (“CCO”) undertake decision-making regarding various matters relating to compliance and
administration of compliance (management of the standing in compliance with laws and regulations) under their respective responsibilities and authority.
The Investment Committee and Compliance Committee as the decision-making organs are placed below the Board of Directors and maintain independence in dealing with compliance
issues, internal audit, risk management, etc. in JRA. They also endeavor to constrain and remedy transactions involving confl icts of interest.
As JRA's own rules for the prevention of conflicts of interest, United Urban has established internal rules (as rules ancillary to the Investment Committee rules) concerning transactions with
Sponsor/Stakeholder to provide for restrictions on transactions, etc. between United Urban that entrusts the management of its assets to JRA and those related to the sponsors.
Flowchart for decision-making structure relating to internal control for the acquisition or sale of assets by JRA, is as follows.
【The Investment Committee】(the “Committee” within this framework)
・The Committee has the decision-making authority about services concerning investment
and management of United Urban assigned and granted authority by the Board of
Directors
・Committee members : 1 chairperson (CEO), and 2 members (a Non-executive Director
and an outside expert (An attorney at Law ))
・Method of resolution : A quorum for adopting a resolution shall be 2 or more members of
the Committee and the unanimous consent of all the attending members of the
Committee shall be required for a resolution
49
Corporate Governance
MEMO
This material is neither a disclosure document nor an investment report
under the Act on Sales, etc of Financial Products. Final investment
decisions are entirely the responsibility of the investors themselves.
Inquiries ： Japan REIT Advisors Co., Ltd.
Registration No. 336 by Kanto Local Bureau
Member of The Investment Trust Association, Japan
Finance Team TEL +81-3-5402-3680 FAX +81-3-5402-3199
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