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Samty Residential Investment Corporation

（Securities CODE：3459）

Financial Results for the 7th Fiscal Period Ending January 2019

１. .Features of Samty Residential Investment Corporation P.3

２. Financial Overview for the 7th Fiscal Period P.9

３. Managing Results P.12

４. Future Growth Strategy P.29

５. Operating Results and Distribution Information P.35

６. Appendix P.42

Table of contents

１. Features of Samty Residential Investment Corporation

Establishment: 1943Capital: 247.3 billion yen (as of the end of Sep. 2018)Number of employees: (consolidated) 16,516(as of the end of Sep. 2018)

Business: Holding, management and control of shares of companies engaged in financial instruments business, etc.

Welcomed Daiwa Securities Group Inc. as a new sponsor in February 2018 and intend to further stabilize, maintain and support the asset management system

New Initiatives of Samty Residential Investment CorporationAdditional acquisition of new properties and third-party allotment by Daiwa Securities Group Inc.

4

【Sub sponsor】Daiwa Securities Group

Inc.100% 67% 33% 0%

Subsidiary

33.7% investment (Note2)

(equity method affiliate)

Asset management

33% transfer

Establishment: 1982Capital: 15.9 billion yen (as of the end of Nov. 2018)Number of employees: (consolidated) 207(as of the end of Nov. 2018)Business: Real estate business, real estate leasing business, real estate planning and design, etc.

【Overview of Samty Co., Ltd.】【Overview of Daiwa Securities Group Inc.】

(Note1) Samty Co., Ltd. and Daiwa Securities Group Inc. fall under a specified affiliated juridical person of the asset management company as set forth in Article 12-3 of the Cabinet Office Ordinance on Disclosure of Information, etc., on Regulated Securities (Law Number: Ordinance of the Ministry of Finance No. 22 of 1993; including subsequent revisions).

（注）(Note1)

Equity method affiliate

Samty Residential Investment Corporation

【Main sponsor】Samty Co., Ltd.(Note1)

【Asset Management Company】

Samty Asset Management Co., Ltd.

5.0% investment (Note2)

(Note2) Figure from public offering conducted in January 31, 2019.

Investing primarily in residential properties in major regional cities

Samty Residential Investment Corporation aims to build a portfolio which pursues stability, growth potential and earning potential by “investing primarily in residential properties in major regional cities,” “utilizing the Samty Group,” “receiving various sponsor support” and “utilizing the functions and network of Daiwa Securities Group Inc.”

5

Support from Daiwa Securities Group

Utilization of functions and network as a comprehensive securities group

Provision of informationSupporting formation of a bridge fundCooperation in securing staff

Investment Strategy of Samty Residential Investment Corporation

Samty Residential Investment Corporation(“Samty Residential”) will invest in high quality residential assets suitable for respective regional conditions throughout national cities with the sponsor support of the Samty Group

(1) Features of Samty Residential

Stability▶ Diversified investing in carefully

screened residential properties of Japan

Growth▶ Expanding portfolio size through

continual new investments primarily in major regional cities

収益性▶ Realizing large earnings

anticipated through investing in carefully screened residential properties in major regional cities

Earning Potential

Support from the Samty Group Listed on the First Section of the Tokyo stock Exchange on October 26, 2015

Properties developed by the Samty GroupStable supply of the S-RESIDENCE series

Grant of exclusive negotiating rights

Stable supply of new developed properties

Wide-ranging support from the sponsorEnhancing value through running a unified brand

“(Note) Samty Group” refers to Samty Co., Ltd. (the “Main Sponsor”), consolidated subsidiary companies of the Main Sponsor (Ordinance on Terminology, Forms and Preparation Methods of Consolidated Financial Statements (Ministry of Finance No. 28 of 1976. Including subsequent amendments.) Referred to as consolidated subsidiary company as stipulated by Article 2 (iii).) and special purpose companies which the Main Sponsor itself invests in, other than the consolidated subsidiary companies of the Main Sponsor, excluding Samty Residential.

Provision of various information

Provision of warehousing functionsProvision of human resources and management/operating support

A. Investment policy by asset class(2) Portfolio Development Policy

Residentialproperties(Note1) 80% or more

20% or lessOperating

facilities(Note2)

Single Type Floor per unit of less than 30m2

Compact TypeFloor per unit of between 30m2 and 60m2

Regional cities

Greater

Tokyo area

50%or more

Around

70%

Around

30%

20%or less

Investment areas Investment ratio (Note3)

6

Investing in accommodation facilities and other facilities, primarily in the residential asset class

Focus on the Single and Compact type residences

(Note1) “Residential properties“ represents the rental housing.(Note2) “Operating facilities” represents the hotels and health care properties.

Ｂ. Investment policy by geographical area Focusing on investing in major regional cities

Major regional cities(Sapporo, Sendai, Nagoya, Kyoto, Osaka, Kobe, Hiroshima and Fukuoka)

50% or more of all investments will be in properties that are conveniently located near bus terminals or railway stations linked with other major terminal stations.

Other regional cities(Regional cities excluding major regional cities)20% or less of investments will be in residential properties that can be anticipated stable operation rental and income stability because of their commutable location to core office areas, medical facilities or national universities located in the area.

Tokyo, Kanagawa, Saitama, ChibaAround 30% of investments will be in residential properties primarily located in residential communities within a 10-minute walk of the nearest railway station (or bus stop) that is located along a line connected to a terminal station.

(Note3) "Investment ratio" is based on the acquisition price (excluding acquisition-related expenses and taxes). The above investment ratios are future targets and actual portfolio composition may vary.

Investment Strategy of Samty Residential Investment Corporation

(Note)The figure for a total of 96 properties excluding 2 properties consisting of 1 property sold on January 31, 2019 and 1 property scheduled to be sold on July 31, 2019 and including 5 properties acquired on February 28, 2019 or scheduled to be acquired on March 29, 2019 is indicated.

Miyagi 4

Tochigi 1

Saitama 2

Ibaraki 1

Chiba 7

Tokyo 7

Kanagawa 7Aichi 16

Shizuoka 2

Hiroshima 2

Hyogo 7

Kyoto 3

Mie 5

Osaka 9Kumamoto 4

Oita 3

Fukuoka 6

Saga 2

Niigata 1

7

■HokkaidoS-RESIDENCE Miyanomori

■ChibaS-RESIDENCEMotoyawata

■AichiS-RESIDENCE Aoi

■OsakaS-FORT EsakaTarumicho

■NiigataS-FORT NiigataHoncho

■HyogoS-FORT Kobe Ogawadori

■KumamotoS-FORT Kumamoto Senba

■ChibaS-RESIDENCE Matsudo

Portfolio Overview (1)■ Samty Residential has acquired 96 residential properties throughout Japan and successfully

composed more stable diversified portfolio concentrating in major regional cities

Hokkaido 7

(Note 1) The above ratios are calculated based on acquisition prices for 96 properties, including 5 properties newly acquired in February and March 2019 and excluding 2 properties sold in January 2019 or scheduled to be sold in July 2019.

(Note2)

8

Major Regional

cities55.3%Other

Regional cities

22.0%

Greater Tokyo area

22.7% Kinki26.2%

Tokai19.2%

Kyushu14.6%

Tohoku6.2%

Hokkaido5.4%

Kita Kanto2.7%

Chugoku1.9%

Koushinetsu1.1%

Ratio of Regional

cities77.3％

(As of end of July 2019: 96 properties (assumption))

Less than5 years35.0%

5 yers to less than 10 years

6.5%

10 years to less than 15 years

49.1%

15 yers to less than 20 years

8.9%

More than20 years0.5%

AverageBuilding age

9.1 year

Warehousing25.1%

Third party12.9%

Bridge(SPC)11.2%Third party

1.3%

Bridge(SPC)4.0%

Developed/Owned by sponsor45.6%

AM49.1%

Sponsor50.9

Single type

53.2%

Compact type36.0%

Family type

10.8%

Ratio of single and

compact type89.2%

Portfolio Overview (2)Investment structure of owned properties

Investment ratio by geographical area Ratio of average area per residential unit

Ratio by building age Investment ratio byinformation/acquisiton channel

(Note 2) The outer ring indicates the ratio of acquisition channel of owned properties while the inner ring indicates that of information channel of owned properties.

２. Financial Overview for the 7th Fiscal Period

7th Period (January 31, 2019)

Forecast(As of

Septemer 14,2018)

ResultsChange from

Forecast

Management performance

Operating revenue 1,834 2,888 3,079 3,216 +137 +1,381 +328

(out of which, real estate rental revenue) 1,817 2,875 3,079 3,034 -44 +1,217 +159

Operating expenses 1,045 1,483 1,614 1,609 -5 +564 +126

(out of which, real estate rental expenses) 803 1,200 1,212 1,233 +21 +430 +33

Operating income 789 1,404 1,464 1,606 +142 +817 +202

Non-operating income and loss -169 -392 -329 -285 +43 -116 +107

Ordinary income 620 1,011 1,135 1,321 +185 +700 +309

Corporate tax, etc. 0 0 1 0 0 0 0

Net income 619 1,010 1,134 1,320 +186 +700 +309

■Distributions(Note)

Distribution per unit(Not including distribution in excess of earnings)・・・①

2,191 2,213 2,250 2,620 +370 +429 +407

Distribution in excess of earningsper unit・・・② 484 468 450 456 +6 -28 -12

Total distribution per unit ・・・① + ② 2,675 2,681 2,700 3,076 +376 +401 +395

Vs. 6th and7th results

6th Periodresults

(July 31,2018)

5th Periodresults

（January 31,2018)

Vs. 5th and7th results

(Note1) Calculated with the numer of investment units issued at 283,000 units for 5th period, 456,600 units for 6th period and504,100 units for 7th period.

(Note2) For more details, please refer to “Outlook of Distribution” on page 37.

Vs. 7th fiscal period forecast

Vs. 7th fiscal period forecastAlthough revenues from rents including

common area expenses decreased, operating revenue was 3,216 million yen (+137 million yen from the plan) due to the sale of one property. In addition, operating expenses was 1,609 million yen (-5 million yen from the plan) and operating income was 1,606 million yen (+142 million yen from the plan) due to the decrease in leasing promotion expenses, administrative service fees and taxes and dues. Consequently, net income was 1,320 million yen (+186 million yen from the plan).

(+ indicates increase factors, –indicates decrease factors)

■ Increase in operating revenue ・Decrease in revenues from rents

including common area expensesand key money

・Increase in other revenues from rental business

・Revenue from sales of real estate

■ Decrease in operating expenses・Increase in real estate rental expenses・Increase in depreciation・Decrease in selling, general and

administrative expenses

■ Increase in non-operating incomeand loss

・ Decrease in non-operating expenses

+137 million yen

-72 million yen

＋28 million yen

-12 million yen-8 million yen

Forcast：96.3％ Actual：94.9％【Capital expenditures】

Forecast：99 million yenActual：104 million yen

＋26 million yen

＋43 million yen

10

+181 million yen

+5 million yen

＋43 million yen

Summary of Income Statement for 7th Fiscal Period Comparison of Forecast and Actual Result

(million yen)

【Average occcupancy rate】

【Payout ratio】Forecast：75.1％Actual：77.3％

(yen)

Although real estate rental revenue was lower than the assumption, operating expenses including leasing costs decreased. Net income increased significantly due to revenue from sales of properties and administrative service fees.

(Note) The above figures are rounded down to the nearest whole number.11

Operating revenue factors＋137 mn yen（+272 yen）

Operating expensed factors

+5 mn yen（+12 yen）

Non-operating income and expense factors

+43 mn yen（+85 yen）

Total increase in distribution＋186 mn

yen（＋370 yen）

7th period forecast ditstibution（announced on September 14,2018)

Distribution1,134 mn yen(2,250 yen）

Distribution1,320 mn yen(2,620 yen）

Distributoin Excess of earnings

227 mn yen(450 yen)

Distribution in excess of earnings

229 mn yen(456 yen)

Total distribution1,361 mn yen（2,700 yen）

Payout ration75.1%

Total distribution1,550 mn yen（3,076 yen）

Payout ratio77.3%

Increase in other income+28 mn yen（＋56 yen）

Revenue from sales of real

estate＋181 mn yen（＋359 yen）

Decrease in selling,

general and administrative

expenses26 mn yen(+52 yen)

7th period actual results

Decrease in non-

operating expenses

43 mn yen（+85 yen）

Decrease in revenues from rents including common area expenses and key money-72 mn yen

（-143 yen）

Increase in depreciation -8 mn yen

（-16 yen）

Increaes in real estate expenses

-12 mn yen（-24 yen）

Summary of Income Statement for 7th Fiscal PeriodComparison of Forecasted Distribution with Actual Result◆ Comparison of forecast and actual results for 7th fiscal period

３. Managing Results

Samty Residential will continue to expand its asset size by utilizing warehousing in cooperation with the bridge fund and sponsor and cooperating with developers. ⇒Acquired 11 properties (total acquisition price: 8.1 billion yen) in August and November 2018. Asset size is scheduled to expand to 90.8 billion yen (96 properties) at the end of July 2019 through further conducting of property replacements (sale of 2 properties in January and July 2019 and acquisition of 5 new properties in February and March 2019).

Occupancy rate fell below the assumption although unit rent after adjustment was stabilized⇒Newly acquired 33 properties with the third-party allotment in the 6th period and 11 properties due to capital increase

through public offering in the 7th period ・Delay in the improvement of occupancy rate due to the increase in the number of properties at the beginning of the off-season・Focused on the amount of increase in unit rent for existing properties. Aiming to implement measures centering onthe improvement of occupancy rate in the future.

(Note 1) Calculated by: Unitholder capital + Unrealized gain/loss (Appraisal value –Book value) / Number of investment units issued.(Note 2) Occupancy rate at the end of the 7th period is the figure as of January 31, 2019 for a total of 91 properties excluding S-RESIDENCE Suminodo sold at the end of January 2019 and S-RESIDENCE Niigata Honcho recently

completed. (Note 3) Average building age at the end of the 8th period is the figure as of July 31, 2019 for a total of 96 properties including 5 properties that will be newly acquired or are scheduled to be newly acquired and excluding 2

properties that will be sold or are scheduled to be sold. Furthermore, appraisal NOI yield is calculated based on the figures of the appraisal report with January 31, 2019 as the appraisal date for the existing 92 properties.

Samty Residential intends to diversify its fund procurement methods by conducting capital increase through public offering. Samty Residential aims to develop a solid financial base and decrease the spread by diversifying repayment dates of interest-

bearing liabilities. One city bank will participate as a lender. Samty Residential intends to continue enhancing lender formation.

13

◆ Portfolio highlights

Financial Strategy

Internal Growth

External Growth

Management Summary

End of 5th period(January 31, 2018)

End of 6th period(July 31, 2018)

End of 7th period(January 31, 2019)

End of 8th period(July 31, 2019)

(assumption)

No. of properties 49 properties 82 properties 92 properties 96 propertiesTotal acquisition price 51,551 million yen 81,515 million yen 88,222 million yen 90,842 million yenAppraisal value 56,658 million yen 87,976 million yen 95,320 million yen -Appraisal NOI yield 5.6% 5.5% 5.4% -

NAV per unit (Note1) 102,854 yen 97,025 yen 97,074 yen -

Average building age 8.9 year 9.0 year 9.0 year 9.1 year（Note3）

Occupancy rate 96.5% 95.1% 95.4%（Note2） -

No. of rentable units 3,754 units 5,920 units 6,334 units 6,487 units

■ The number of residences owned throughout Japan increased from 82 (end of the 6th period) to 96 (assumption at the end of the 8th period). Intending to improve the quality of the portfolio.

Area No. of properties Acquisition price No. of rentable units

Major regional cities

42 properties→50properties

45.7 billion yen(56.1%) →50.2 billion yen (55.3%)

3,270 units→3,531 units

Other regional cities

20 properties→23 properties

18.8 billion yen (23.1%) →19.9 billion yen (22.0%)


Greater Tokyo area

20 properties→23 properties

16.9 billion yen (20.8%)→20.6 billion yen (22.7%)


Total 82 properties→96 properties

81.5 billion yen →90.8 billion yen


14

◆ Change from the end of the 6th period through the end of the 8th period (assumption)

(Note) Average building age is the figure as of July 31, 2019 for a total of 96 properties including 5 properties that will be newly acquired were or are scheduled to be newly acquired and excluding 2 properties that will be sold or are scheduled to be sold.

81.5 90.8 Average building age 9.1 yearAsset size(million yen) (Note1)

Overview of Property Replacement (1)

A-02 S-FORTSanno

（to be sold at the end ofJul. 2019)

Location Nakagawa-ku, Nagoya-shi

No. of reasable units 230 units

Completion date Jan.2008

Acquisition price 2,890 mn yen

Appraisal value 3,270 mn yen

Sales price(scheduled)

3,300 mn yen

A-50 S-RESIDENCEShiga Hondouri

(to be acquired at the end ofMar.2019)

A-51 S-FORT Kobe Ogawadori


B-24 S-FORTKumamoto Gofukumachi(to be acquired at the end of

Mar.2019)

C-23　S-RESIDENCEMotoyawata


Location Kita-ku, Nagoya-shi Hyogo-ku, Kobe-shi Chuo-ku, Kumamoto-shi Ichikawa-shi, Chiba

No. of reasable units 88 units 46 units 54 units 100 units

Completion date Jan.2019 Jun.2008 Feb.2006 Jan.2019

Acquisition price(scheduled)

1,150 mn yen 599 mn yen 599 mn yen 1,678 mn yen

Appraisal value 1,160 mn yen 600 mn yen 604 mn yen 1,680 mn yen

Appraisal NOI yeild 4.8% 5.3% 5.8% 4.6% 15

Sales：8th Period（ending July 2019) Acquisiton: 8th Period（ending July 2019)

Replacement

Location Daito-shi, Osaka

No. of reasable units 126 unitsCompletion date Apr. 2008

AccessAbout 1-minute walk from Suminodo Sta., JR Gakkentoshi Line

Higashi-ku, Nagoya-shi

95 units

Sep. 2018

About 4-min work from Shin-Sakaemachi Station, Nagoya City Subway Higashiyama Line

Acquisition price(million yen)

Appraisal value(million yen)

Disposition price(million yen)

1,420 1,590 1,600

Acquisition price(million yen)

Appraisal value(million yen)

Appraisal NOI yield

1,484 1,490 4.6%

Overview of Property Replacement (2)

Sales: 7th Period (ending January 31, 2019) Acquisition: 8th Period (ending July 31, 2019)

B-02 S-FORT Suminodo (Sold at the end of January 2019) A-49 S–RESIDENCE Aoi (acquired at the end of February 2019)

Location

No. of reasable unitsCompletion date

Access

Replacement

■Scheduled to sequentially sell and acquire properties from the end of January 2019. Asset size expected to expand to 90.8 billion yen.

■ Samty Residential has contributed to the improvement of unitholder value as well as realized the improvement of its portfolio and earning potential through steady expansion of asset size since listing.

◆ Overview of public offering

Details of offering

Schedule

Date of resolution ofissurance

August 10, 2018Payment date

August 27, 2018Delivery date

August 28, 2018

Number of investmentunits issued 47,500 unitsNumber of investment units offered through over-allotment

2,375 units

Price of offering

Total amount of offering

4,116 million yen

Daiwa Securities Co., Ltd. Nomura Securities Co., Ltd.

◆ Overview of property acquisition

No. of properties

11

Total acquisition

price

8.1 billion yen

Average appraisal NOI

yield

5.0%

Average building age

4.2 years

Appraisal value

8.3 billion yen

4,270 million yen

Overview of Public Offering in August 2018 and Newly Acquired Properties

89,895 yen per unit(Final closing price on the day on which the conditions were determined: 92,200 yen)

(Note 1) Average appraisal NOI yield is calculated based on the figures of the appraisal report as of July 31, 2018 for the existing 82 properties and as of June 1, 2018 for the Newly Acquired Properties. (Note 2) Figures are calculated as of July 31, 2018. Building age of S-RESIDENCE Matsudo is indicated as 0.0 years as it is not completed.

Amount of procurement

16

External Growth

Lead Managers(Co-Lead

Managers)

A-43 S-RESIDENCE Shin Osaka RidenteYodogawa-ku, Osaka-shi

A-47 S-RESIDENCE Miyanomori C-22 S-RESIDENCE Matsudo

Properties acquired in August 2018 and November 2018

17

Acquisitonprice

(million yen)

Appraisalvalue

(millin yen)

AppraisalNOI yield

1,338 1,390 4.6%

Acquisitonprice

(million yen)

Appraisalvalue

(millin yen)

AppraisalNOI yield

660 679 5.4%

A-44 S-FORTFukushima La Luna

A-45 S-FORTFukushima Libre

A-46 S-FORTKamiyashiro

A-48 S-FORTHigashi-Sapporo Nordo

B-21 S-FORTEsaka Tarumicho

B-22 S-FORTNiigata Honcho

B-23 S-FORTMotohama

C-21 S-FORTFujimidai

Acquisitonprice

(million yen)

Appraisalvalue

(millin yen)

AppraisalNOI yield

840 850 4.6%

Kita-ku, Osaka-shi

48 units

Jan.2016

Fukushima-ku,Osaka-shi36 units

Aug.2016

Higashi-ku, Nagooya-shi

42 units

Feb.2004

Shiraishi-ku,Sapporo-shi24 units

Feb.2005

Suita-shi, Osaka

48 units

Nov.2016

Chuo-ku, Niigata-shi

83 units

Mar.2018

Naka-ku,Hamamatsu-shi

34 units

Mar.2007

Nakano-ku,Tokyo

61 units

Aug.2008

U

U MM

(Note) Appraisal value and Appraisal NOI yield are based on the figures of the appraisal report withJune 1, 2018 as the appraisal date.

External Growth

Location


Access About 10-min walk from Mikuni Station, Hankyu takarazuka Line

90 units

Jan.2018

Location


Location

No. of reasable units

Completion date

Access

Chuo-ku, Sapporo-shi

22 units

Nov. 2017

About 4-min walk from Chokoku Bijutsukan Iriguchi Bus Stoop, JR Hokkaido Bus

Location


Access

Matsudo-shi, Chiba

52 units

Oct. 2018

3-min walk from Matsudo Station JR Joban Line

Location


Location


Location


Acquisitionprice

(million yen)

Appraisalvalue

(million yen)

Appraisal NOIyield

896 934 4.6%

Acquisitionprice

(million yen)

Appraisalvalue

(million yen)

Appraisal NOIyield

538 539 4.7%

Acquisitionprice

(million yen)

Appraisalvalue

(million yen)

Appraisal NOIyield

429 430 5.7%

Acquisitionprice

(million yen)

Appraisalvalue

(million yen)

Appraisal NOIyield

303 304 5.7%

LocationNo. of reasable units

Completion date

Location


Location


Location


Acquisitionprice

(million yen)

Appraisalvalue

(million yen)

Appraisal NOIyield

774 788 5.0%

Acquisitionprice

(million yen)

Appraisalvalue

(million yen)

Appraisal NOIyield

960 967 5.6%

Acquisitionprice

(million yen)

Appraisalvalue

(million yen)

Appraisal NOIyield

239 240 6.9%

Acquisitionprice

(million yen)

Appraisalvalue

(million yen)

Appraisal NOIyield

1,150 1,270 5.1%

U MClose to universities Close to medical institution

95.3％ 96.5％ 96.4％93.8％ 96.2％ 95.6％

18

94.9％Average occupancy

rate

Internal Growth

Changes in the Occupancy Rates by AreaOccupancy rate for the entire portfolio has risen 2.6 point from the time of IPO. Currently it stably keeps over 95%.

Began management with 28 propertiesOn July 1, 2015

2nd Fiscal Period(July 31, 2016)

3rd Fiscal Period(January 31, 2017)

1st FiscalPeriod

(January 31,2016)

4th Fiscal Period (July 31, 2017)

5th Fiscal Period (January 31, 2018)



Occupancy rate(%)

30-Jun 31-Jan 31-Jul 31-Jan 31-Jul 31-Aug 30-Sep 31-Oct 30-Nov 31-Dec 31-Jan 28-Feb 31-Mar 30-Apr 31-May 30-Jun 31-Jul 31-Aug 30-Sep 31-Oct 30-Nov 31-Dec 31-Jan

Major regional cities 92.7 95.6 95.3 97.8 95.2 95.1 95.8 95.5 95.5 96.1 96.3 96.2 96.8 95.3 94.4 94.7 94.2 94.2 94.3 94.6 94.4 95.0 95.4

Other regional cities 93.8 95.3 95.2 96.9 95.8 96.2 97.0 97.5 97.5 97.3 97.0 95.0 96.3 95.5 94.5 94.6 95.2 95.0 95.6 95.0 94.3 93.7 95.1

Greater Tokyo area 92.5 93.5 96.2 96.7 97.8 97.7 97.9 97.4 97.2 97.5 96.4 97.8 98.0 97.5 97.5 97.7 97.6 96.2 96.7 96.2 96.5 95.8 96.1

Overall 92.8 95.2 95.4 97.5 95.6 95.6 96.2 96.1 96.0 96.5 96.5 96.1 96.8 95.7 94.9 95.1 95.1 94.7 95.0 95.0 94.7 94.8 95.4

5th Fiscal Period (January 31, 2018) 6th Fiscal Period (July 31, 2018) 7th Fiscal Period (July 31, 2019)2nd Fiscal Period(July 31, 2016)

3rd Fiscal Period(January 31,

2017)

4th Fiscal Period(July 31, 2017)

1st Fiscal Period(January 31,

2016)

(Note) Occupancy rates shows the ratio of total leased floor space to total rentable floor space as of each month end for each property, rounded off to one decimal place. Occupancy rates fromend of August 2018 to end of January 2019 exclude recently completed S-FORT Niigata Honcho. Also, the occupancy rate for end of January 2019 does not include S-FORT Suminodo which desposed on January 31, 2019.

19

Internal Growth

Changes in unit rent after adjustmentUnit rent after adjustment of the entire portfolio remained stable, maintaining earning potential of the portfolio

Began management with 28 propertiesOn July 1, 2015



1st FiscalPeriod

(January 31,2016)






3rd Fiscal Period(January 31,

2017)


30-Jun 31-Jan 31-Jul 31-Jan 31-Jul 31-Aug 30-Sep 31-Oct 30-Nov 31-Dec 31-Jan 28-Feb 31-Mar 30-Apr 31-May 30-Jun 31-Jul 31-Aug 30-Sep 31-Oct 30-Nov 31-Dec 31-Jan

Major regional cities 100.0 100.2 100.5 100.6 101.0 101.0 101.1 101.1 101.2 101.2 101.2 101.0 101.1 101.2 101.2 101.5 101.5 101.4 101.4 101.5 101.5 101.5 101.6

Other regional cities 100.0 100.0 100.2 100.5 101.0 101.0 101.1 101.1 101.1 101.2 101.2 100.5 100.7 100.8 100.9 101.0 101.0 101.0 101.1 101.1 101.2 101.2 101.3

Greater Tokyo area 100.0 100.1 100.4 100.4 100.7 100.7 100.8 100.9 100.9 100.9 100.9 100.4 100.6 100.6 100.6 100.6 100.7 100.7 100.7 100.8 100.8 100.8 100.8

Overall 100.0 100.1 100.5 100.5 100.9 101.0 101.1 101.1 101.1 101.2 101.2 100.8 100.9 101.0 101.1 101.2 101.2 101.2 101.2 101.3 101.3 101.3 101.4

Rent unit price after adjustmentEnd of June 2015=100

1st Fiscal Period(January 31, 2016) 5th Fiscal Period (January 31, 2018) 6th Fiscal Period (July 31, 2018) 7th Fiscal Period (January 31, 2019)

(Note) Unit rent after adjustment is calculated using the following formula with the assumed contract period of4 years. Unit rent after adjustment = {Monthly rent revenue + (Key money revenue ÷ Assumed contract period)}÷ Contracted area Unit rent after adjustment for each area was calculated through simple averaging of unit rent after adjustment of each property in accordance with the number of properties in the relevant area in the presentation materials until the 4th fiscal period. However, starting in the 5th fiscal period, such is calculated through weighted averaging of unit rent after adjustment of each property in accordance with the contracted area ratio of each property in the relevant area.

Increase334 units/57.2%(-48 units/+0.9%)

Unchanged69 units/11.8%(-26 units/-2.2%)

Decrease181 units/31.0%(-21 units/-1.2%)

7th fiscal period[Increase factors] Number of tenant replacements decreased

from the previous period when there were many tenant replacements resulting from entry to schools and companies.

Continue to increase rent through negotiations upon tenant replacement and receiving key money

[Breakdown of increase through negotiation cases/total number of increased cases]

(1) Increase due to negotiation (2) Increase due to review of

rent balance(3) Increase due to elimination of

rent gap(4) Increase due to receiving

key money/acquiring more key money than the previous

(5) Increase due to installation of furniture/home appliances

[Decrease factors/total number ofdecreased cases]

(1)Decrease due to review of rent balance

(2) Decrease due to rent gap(3) Decrease due to not receiving

key money

182 cases

17 cases

53 cases

4 cases

34 cases

90 cases

57 cases

20

96 cases

Internal Growth

Increase or Decrease of Unit Rent after adjustment at the time of Tenant Replacement◆ The ratio of increase of unit rent after adjustment

at the time of tenant replacement is 57.2%■ Increase or decrease of unit rent after adjustment

at the time of tenant repacement (Note)

(No. of units / Composition ratio)

69 units114 units 100 units

132 units

268 units234 units51 units

95 units

69 units

101 units

167 units

151 units

34 units

35 units

30 units

0

100

200

300

400

500

600

700

5th fiscal period(As of January 31,

2018)

6th fiscal period(As of July 31,

2018)

7th fiscal perio(As of January 31,

2019)

Increase exceeding 5% Increases of 5% or lessUnchanged Decrease of 5% or lessDecrease exceeding 5%

Total 679 units

Total 387 units

Total 584 units【6th fiscal period】

【7th fiscal period】

(Note) Unit rent after adjustment is calculated using the following formula with the assumed contract period of 4 years. Unit rent after adjustment = {Monthly rent revenue + (Key money revenue ÷ Assumed contract period)} ÷ Contracted area

21

Internal Growth

Change in Renewal Status of Owned Properties◆ Renewal rate remained at a high level of around 90%■ Change in the number of renewals and renewal rates

526 units 493 units657 units

913 units646 units

1,179 units 816 units

92.0%

89.3%

94.3%

91.2%

92.2% 92.1% 91.9%

80.0%

82.0%

84.0%

86.0%

88.0%

90.0%

92.0%

94.0%

100 units

300 units

500 units

700 units

900 units

1,100 units

1,300 units

1,500 units

1st Fiscal Period(January 31, 2016)

2ne Fisal Period(July 31, 2016)



5th Fiscal Period(January 31, 2018)



No. of renewals Renewal rates

0

3,000

6,000

9,000

12,000

15,000

18,000

21,000

24,000

1st Fiscal Period(January 31, 2016)

2ne Fisal Period(July 31, 2016)






92 units(17.5%)

112 units(22.7%) 99 units

(15.1%)6,982(75）

6,471（57） 4,178

（42）

12,253（54）

223 units(24.4%)

9,882（64）

154 units(23.8%)

433 units(36.7%)

18,682（43）

333 units(41.6%)

12,566（37）

■ Change in the number of renewal fee collectionsand the amounts collected (Thousand yen)

S-FORT Tamagawagakuen-mae

◆ Cost reduction through the utilization ofSamty GroupObtained an estimate from multiple companies including Samty Property Management Co., Ltd. upon large-scale construction work. Selected the supplier by comprehensively taking into account the expenses, construction process and characteristics of properties.

S-FORT Nishinomiya Uegahara(collapse of exterior fence)

[Renovation of common areas in line with the location of property and tenant attributes]

[Damage caused by Typhoon Iburi Earthquake]

22

Swiftly conducted repair work in cooperation with the local management company to ensure security and safety of tenants although damage to some properties due to the earthquake and typhoon that occurred during the 7th fiscal period was identified.

[Damage caused by the HokkaidoEastern Iburi Earthquake]

◆ Leasing measures for increasing earnings

Changing the appearance to a bright common area with a playful spirit on each floor in line with the distinctive exterior and locational characteristics of having high demand from students.

Renovation of deteriorated floor due to aging (2F)

To use wallpaper with different images on each floor

S-FORT Motohama(renovation of living room)

Intending to differentiate the property from others through designer’s renovation “Renotta”.

S-FORT Nishinomiya(renovation of kitchen)

Increasing the number of burners from 1 to 2 and transforming the kitchen to have excellent usability for those cooking their own meals.

S-FORT Tsutsujigaoka Koen(repair work of exterior tiles)

S-FORT Funabashi Tsukada(rooftop waterproofing work)

Internal Growth

Initiatives in the 7th Period

(Note) The above picture is appearance after renovation

・ Amount estimated by Samty’sPM Company 27,000 thousand yen (adopted)

・ Amount estimated by A 30,500 thousand yen(+3,000 thousand yen)

･ Amount estimated by B 28,500 thousand yen

(+1,000 thousand yen)

・Amount estimated by Samty’s PM Company

7,300 thousand yen (adopted)・Amount estimated by A 7,500 thousand yen (+200 thousand yen)

・Amount estimated by B 7,700 thousand yen(+400 thousand yen)

・Amount estimated by C9,857 thousand yen (+2,557 thousand yen)

◆ Measures for damage caused by earthquake and typhoon

S-FORT Toyohira Sanjyo(separation of exterior tiles)

23

◆ Properties with low occupancy in the current fiscal period and future improvement plans

Propertyname/location

Occupancy rate as of the end of January

Target of occupancy

rate

Schedule for

achieving goal

Cause of low occupancy Improvement measures

B-01S-FORTShizuoka Hondori

(Shizuoka City)

71.4% 90.0% End of April 2019

-Width and open space of the property do not appealefficiently and needs for a layout of over 30 m2

cannot be met.-Needs from corporations in autumn were not sufficiently taken in

-The number of vacant parking lots within the site was insufficient and customers with demand for parking lots were not attracted

-Preparing two model rooms by layout type andemphasizing the appeal of the layout and width

-Aiming to take in demand from corporations by preparing a plan with furniture and home appliances

-Scheduled to renovate the interior of the room (two patterns)→Full renovation of living room (Renotta)→Installing an accent cloth at the partition of the closet wall -Aiming to strengthen relations with corporate brokerage companies in the Greater Tokyo area with track records andtake in demand from corporations in early spring

-Aiming to secure parking lots outside the site in its vicinity

A-18S-FORT

Aoi 1-Chome (Nagoya City)

81.5% 91.0% End of April 2019

-Differentiation was insufficient for 1LDK with layoutssimilar to competitive properties in the vicinity

-Needs for movements of corporations in autumn were not taken in due to continuous cancellation of lease contracts from October onwards

-Intending to differentiate the property from competitive properties through renovation

→Introducing ceiling light projectors -Taking in demand from corporations by preparing a plan with furniture and home appliances

-Conducting a campaign limited to brokerage companies withtrack records in corporate customer contracts

-Increasing the number of flat parking lots and large motorcycle parking spaces

A-29S-FORT

Miyamachi (Sendai City)

82.6% 93.5% End of April 2019

・Differentiation from competitive properties in the vicinity with similar price range of rent was insufficient

・Failed to make progress in the planned renovation work of the entrance and common area and attractiveness of S-FORT brand wasinsufficient

-Intending to solicit price-sensitive customers by preparing a plan with reduced initial costs

-Taking in needs for job transfers in spring by preparing a plan with furniture and home appliances

-Thoroughly informing brokerage companies that it is a rare,pet-friendly property in Sendai

-Improving the brand image by conducting renovation workon the entrance and common area at an early stage

C-20S-FORTKashiwa (Chiba)

84.1% 95.0% End of April 2019

・Taking time to refill vacancies due to continuous cancellation of lease contracts from Septemberonwards

・Insufficient lighting at the entrance giving a dark impression

・Failed to differentiate the property from others as added value corresponding to the rent level was not provided in terms of facilities

-Re-strengthening relations with brokerage companies withtrack records in concluding contracts

-Adopting LED lighting at the entrance -Introducing uninstalled free internet facility -Conduct replacement to the latest delivery boxes,improving functions and increasing the number of boxes

→Occupancy rate is expected to reach 100% at the end of March

Future measures for leasing (1)Internal Growth

24



Target of occupancy

rate

Schedule for

achieving goal


A-39S-FORTKobe

Sannomiya-Kita

(Kobe City)

86.7% 93.0% End of April 2019

-Failed to differentiate the property from propertieswith the same grade and low rent in its vicinity

-Intending to improve the grade inside the room by renewing facilities such as the kitchen, air conditioner and bathroom drying/heating system -Conducting a campaign to reduce initial costs within a limitedperiod to take in demand before the peak season

→Occupancy rate is expected to reach 95.0% at the end of March

C-17S-FORT

Kawaguchi Namiki

(Saitama)

88.5% 95.0% End of April 2019

-Taking time to refill vacancies due to multiple cancellations of lease contracts from September onwards

-Needs from customers with the same rent range were not sufficiently taken in

-Considering flexible responses in line with the needs of each company by targeting the use of corporate housing for new employees in spring

-Strengthening sales activities toward brokerage companies specializing in brokerage of foreign customers as the property is located in an area with many foreign customers

-Placing drawings and area maps in living rooms that can beviewed and enhancing the appeal to customers who come the viewing event


B-12S-FORT

Mito Chuo (Ibaraki)

88.7% 93.0% End of April 2019

-Failed to accommodate needs despite high demand for the conclusion of lease contracts of competitive properties in the vicinity along with parking lotsin the vicinity

-Failed to refill vacancies due to continuouscancellation of lease contracts from Septemberonwards while the peak season for family-type unitsconcentrates in spring

-Taking in demand during the peak season by conducting a campaign to conclude lease contracts of the property along with the parking lot only for those who apply at the end of February

-Setting a plan to reduce initial costs only for those who apply atthe end of February

-Installing ceiling lights at vacant units and intending to improve the image at the viewing event


B-11S-FORT

Nishinomiya Uegahara (Hyogo)

88.7% 98.0% End of April 2019

-Failed to refill vacancies in time as the property is an apartment for students and lease contracts were cancelled one after another after the peak season inspring ・Acquisition of potential customers was insufficientdue to the implementation of a campaign to reduce prices in the vicinity.

・Planning campaigns, etc. in case of cancellations of leasecontracts after spring

→While lease contracts for 20 rooms are expected to becancelled by the graduation season in spring, the occupancy rateis expected to reach 98.0% at the end of March

Future measures for leasing (2)Internal Growth

◆ Properties with low occupancy in the current fiscal period and future improvement plans

25



Target of occupancy

rate

Schedule for

achieving goal


A-37S-FORTHakata-Higashi I

(Fukuoka City)

88.8% 96.2% End of April 2019

-Failed to take in the needs from corporate customers with the same rent range

-The number of vacant parking lots within the site was insufficient and customers with demand for parking lots were not attracted

-Aiming to secure parking lots outside the site in the vicinity(also considering external leasing according to the occupancystatus of S-FORT properties in the vicinity)

-Aiming to take in demand from corporations by preparing a plan including furniture and home appliances

A-19S-FORT

Aoi (Nagoya City)

89.3% 92.5% End of April 2019

-The number of parking lots within the site and parking lots outside the site in the vicinity was insufficient and needs for concluding lease contractsof the property along with the parking lot were nosufficiently taken in

-Differentiation of the property from competitive properties in the surrounding area was insufficient in terms of facility, etc.

-Securing parking lots outside the site in the vicinity-Intending to change lighting, etc. and enrich facilities byinstalling small articles in each room (mainly on the lowerfloors with many vacant rooms)

-Reviewing the rent balance of the upper and lower floors -Thoroughly inviting people to viewing events of model rooms currently being established and proposing the life image

Internal Growth

Future measures for leasing (3)◆ Properties with low occupancy in the current fiscal period and future improvement plans

5,000 5,600 4,000

5,600 5,200 5,350 5,350

2,500 2,500 3,000 1,300

3,100

1,250

1,000

1,000

0

2,000

4,000

6,000

8,000

8thperiodJuly2019

9thperiod

January2020

10thperiodJuly2020

11thperiod

January2021

12thperiodJuly2021

13thperiod

January2022

14thperiodJuly2022

15thperiod

January2023

16thperiodJuly2023

17thperiod

January2024

18thperiodJuly2024

19thperiod

January2025

20thperiodJuly2025

21thperiod

January2026

(million yen) Borrowings (existing) Borrowings (new) Investment corporation bonds (private）

Total interest-bearing debt

28.6billion yen

28.4 billion yen

Average remainingborrowing period 2.3 years 2.2 years

Ratio of long-term debt (1)long-term debt (2) 98.1% 81.1% 90.5%

Total asset based LTV 51.5% 51.5% 51.4%

Ratio of fixed debt 18.1% 18.2% 18.3%

44.6Billion yen

2.8 years

88.8%

51.2%

30.5%

48.9Billion yen

2.6 years

78.3%

51.0%

30.5%

26

98.1% 98.6% 99.3% 100.0% 100.0%

※Scheduled to borrow on March 29, 2019

Financial Strategy

Financial highlight◆ Change in Financial status

End of 3rd

period(January 31, 2017)

End of 4th

period（July 31, 2017）

End of 5th

period（January 31, 2018）

End of 6th

period（July 31, 2018）

End of 7th

period（January 31, 2019）

28.7billion yen

2.7 years

(Note) While long-term interest-bearing debt ① includes the current portion of long-term debt, long-term interest-bearing debt ② excludes the current portion of long-term debt.

◆ Status of Maturity ladder

0.80% 0.80%

0.70% 0.70%

4.0

4.5

5.0

5.5

6.0

0.65%

0.70%

0.75%

0.80%

0.85%

①Upon listing (July 2015)New borrowing（1-C）

4,000 million yen

②January 2018Refinancing (6-A)2,350 million yen

③June 2018Refinancing (8-A)2,100 million yen

④August 2018 New borrowing (9-A)

2,160 million yen

Spread(Spread：%)

Financial institution Interest-bearingdebt Ratio

SMBC 7,090 14.5%

Resona Bank 3,800 7.8%

Mizuho Bank 1,000 2.0%

Aozora Bank 4,700 9.6%

Shinsei Bank 4,700 9.6%

The Bank of Fukuoka 7,410 15.2%

The Kagawa Bank 3,000 6.1%

Shinwa Bank 2,600 5.3%

The Tokyo Star Bank 1,700 3.5%

Kumamoto Bank 1,600 3.3%

The Higo Bank 1,500 3.1%

The Bank of Saga 1,000 2.0%

The Hyakugo Bank 1,000 2.0%

The Mie Bank 700 1.4%

Hiroshima Bank 600 1.2%

The Tochigi Bank 600 1.2%

Shizuoka Bank 500 1.0%

Oita Bank 500 1.0%

The Minato Bank 500 1.0%

Chiba Bank 300 0.6%

The Kagoshima Bank 300 0.6%

The Ashikaga Bank 200 0.4%

Fukoku Mutual Life 1,100 2.2%

The Dai-ichi Life 500 1.0%Investment corporation bonds 2,000 4.1%

Total 48,900 100.0％27

◆有利子負債の内訳（2019年1月31日時点）

◆ Lender Formation (As of January 31, 2019)

■Aim to continuously transact with city banks and majorbanks as well as cooperate with regional banks to increasethe number of lenders.

City banks

Major banks

Regional

banks

Insurance company

（Note) New lenders are highlighted in light red.

Financial Strategy

Financial highlight◆ Status of Interest-Bearing Debt

(As of January 31, 2019)

Regional banks17 banks(49.1％)

Investment corporation bonds (private)[First] [Second]

Total issue amount 1 bilion yen 1 billion yenMaturity 4 years 5 yearsUnderwriter DBJ Securities Co., Ltd.

■Change in floating borrowing spread

・Capital increase through third-party allotment (February 2018)

・Expansion of asset size(from 51.5 billion yen to 81.5 billion yen)

・Acquisition of rating of A- (stable) from JCR (March 2018)

(Maturity：year)

Extension

28

◆ Change in Cap Rate of propertiesacquired in the 1st fiscal period

(million yen)◆ Change in Unrealized gain

No. of propteties

End of 7th fiscal period

Book value Appraisalvalue

Unrealizedgain Cap Rate

(million yen) (million yen) (million yen)

Major regional cities 48 51,094 54,527 3,433 4.8%

Other regional cities 22 20,142 20,315 173 5.2%

Greater Tokyo area 22 19,525 20,478 953 4.6%

Total 92 90,761 95,320 4,559 4.8%

No. of properties


Change in Appraisal Value Change in Cap Rate

Upward 40 0

Unchanged 41 42

Downward 0 39

(Note) S-FORT Suminodo, which has been sold, is not included in the change in cap rate of assets acquired in the 1st fiscal period.

Appraisal Value Status◆ Summary of Appraisal Value

◆ Appraisal Value Status and Cap Rate Status

(1,000)

0

1,000

2,000

3,000

4,000

5,000

End of 1st fiscal period

End of 2nd fiscal period

End of 3rd fiscal period





4.4%

4.8%

5.2%

5.6%

6.0%

6.4%

End of 1st fiscal period

End of 2nd fiscal period

End of 3rd fiscal period





Major regional cities Other regional cities Greater Tokyo area

４. Future Growth Strategy

305 309 515

882 908 1,000

4 205

299 815 81 -14 55 -28

0

500

1,000

1,500

Assets at IPO(28 properties)

Asset acquired in 1st Period(1 property)

Assets at end of 1st Period

(29 properties)

Assets acquired through PO in

Aug. 2016(20 properties)

Assets at end of 4th Period

(49 properties)

Feb. to Mar.2018

Capital increase through third-party allotment

Acquired properties

(33 properties)

Mar. 2018After capital

increase through third-party allotment (82 properties)

Assets acquired through PO in Aug. and Nov.

2018(11 properties)

Assets sold in 7th Period

(1 properties)

Assets at end of 7th Period

(92 properties)

Assets scheduled to be

acquired on Feb./Mar.

(5 properties)

Assets scheduled to be

sold on Jul.(1 property)

Assets at end of 8th Period Assumption

(96 properties)

Acquired credit rating from JCR A- (Stable)

(billion yen)

30

Growth Strategy・Managed Target1

2

3

4

1

2

3

123

4

Financial strategy

Internalgrowth strategy

Externalgrowth strategy

Expand the asset size and enhance the quality of the portfolio through continuous acquisitions of the “S-RESIDENCE” properties developed by the sponsorAcquire properties through sponsor support – Utilize the warehousing function Acquire properties by taking advantage of the proprietary channels of the asset management companyImplement the differentiated portfolio development policy

Enhance the asset value and rate of return through reviewing existing facilitiesand other measuresReduce operating costs

Stabilize earnings by utilizing sublease agreement

Reinforce property competitiveness and enhance usability of residents by introducing new facilities/equipment

Lengthen borrowing periods and reduce cost of debtExpand the bank formationImprovement of credit rating

◆ Change in Asset size・Management Target (Based on acquisition price) Aim to achieve the asset size of 100

billion yen over the medium term

S-FORTSaga Honjo

S-RESIDENCEYokosuka Chuo

S-RESIDENCEKoe Motomachi

S-FORTRokuban-cho

S-FORTTsurumai cube

S-FORTChion-inmae

S-FORTHokudai mae

S-FORTFukuoka

Kencho MaeS-FORTKatahira

S-FORTGakuenmae

S-FORTSaga Idaimae

S-FORTToyohira Sanjo

S-FORTNishinomiya Uegahara

S-FORTSuizenji

S-FORTMie Daigaku-

mae

S-FORTKumadaibyoin-

mae

S-FORTKumamoto

Senba

S-FORTTsurumai reale

S-FORTKitamaruyamaS-FORT

Aoba KamisugiS-FORT

Tsurumicho

S-FORTNishinomiya

S-FORTTakasago

machi

S-FORTHoya

S-FORTTamagawa

Gakuen mae

S-FORTKashiwa

S-FORTIchikawa S-FORT

NoboritoS-FORT

Sagamihara

Owned propertiesNew properties

scheduled to be acquired in 8th fiscal period

S-FORTNiigata Honcho

S-FORTMotohama

S-FORTOita Ekimae

New properties acquired in 7th fiscal period

S-FORTKamiyashiro

31

S-FORTKumamoto

Gofuku machi

External Growth

Investment policySecured stable earnings by continuously investing in properties close to medical institutions or educational facilities such as universities and by adopting the fixed rent master lease (ML).

Close to medical institutions

Close to universities and medical institutions

Close to universities

Major regional cities

Greater Tokyo area

Other regional cities

Fixed-rent MLFixed-rent ML

Fixed-rent ML

Fixed-rent ML

Fixed-rent ML

A

32

■Samty Pario Umekage

■ExcellenceSakurayama

■S-GLANZ Osaka Doshin

■Samty TsukaguchiResidence

■Samty Meinohama

■K Ryokuchi

Property Nmae Location No. of units (Scheduled)Completiong date Area

① S-RESIDENCE Nishi-ku Minami Horie 3 cho-me PJ Nishi-ku, Osaka City 55 units 2020 Major regional cities

② S-RESIDENCE Kita-ku Nishi Temma 3 cho-me PJ Kita-ku, Osaka City 180 units 2020 Major regional cities

③ S-RESIDENCE Fukushima-ku Ebie 1 cho-me II PJ Fukushima-ku, Osaka City 169 units 2020 Major regional cities

④ S-RESIDENCE Kita-ku Kurokawa Hondori 2 cho-me PJ Kita-ku, Nagoya City 105 units 2020 Major regional cities

⑤ S-RESIDENCE Higashi-ku Aoi 3 cho-me PJ Higashi-ku, Nagoya City 95 units 2020 Major regional cities

⑥ S-RESIDENCE Naka-ku Kamimaezu 2 cho-me PJ Naka-ku, Nagoya City 56 units 2020 Major regional cities

⑦ S-RESIDENCE Taito-ku Taito 2 cho-me II PJ Taito-ku, Tokyo 74 units 2020 Greater Tokyo area

⑧ S-RESIDENCE Nerima-ku Asahicho 3 cho-me PJ Nerima-ku, Tokyo 61 units 2020 Greater Tokyo area

⑨ S-RESIDENCE Chiyoda-ku Higashi Kanda 2 cho-me PJ Chiyoda-ku, Tokyo 51 units 2020 Greater Tokyo area

⑩ Samty Ohori Koen Chuo-ku, Fukuoka City 50 units 1997 Major regional cities

⑪ Samty Meinohama Nishi-ku, Fukuoka City 49 units 2006 Major regional cities

⑫ Excellence Sakurayama Mizuho-ku, Nagoya City 59 units 2007 Major regional cities

⑬ Samty Residence N15 Higashi-ku, Sapporo City 55 units 2014 Major regional cities

⑭ S-GLANZ Osaka Doshin Kita-ku, Osaka City 36 units 2015 Major regional cities

⑮ Elegance Itami Itami-shi, Hyogo 43 units 1997 Other regional cities

⑯ K Ryokuchi Suita-shi, Osaka 88 units 1998 Other regional cities

⑰ Samty Pario Umekage Konan-shi, Shiga 180 units 2006 Other regional cities

⑱ Samty Tsukaguchi Residence Amagasaki-shi, Hyogo 49 units 2009 Other regional cities

⑲ Samty Esaka LIBERTS Suita-shi, Osaka 24 units 2008 Other regional cities

Total 19 properties 1,479 units

【Developed】

【Owned/Warehousing】

◆ Status of pipeline

External Growth

External growth strategy(Note) Acquisition of any properties described on this page has not been decided as of the date of this document.

In order to diversify fund procurement methods, Samty Residential and Samty Asset Management aim to proactively obtain certifications given to real estate properties with high environmental and social awareness centering on the S-RESIDENCE series, the sponsor-developed properties we own, in particular, as well as for other properties we will own newly.

As part of such effort, we obtained DBJ Green Building Certification in three properties among those we own. The DBJ Green Building Certification Program was launched by the Development Bank of Japan (DBJ) in April, 2011 for the purpose of supporting real estate properties with high environmental and social awareness (Green Building).

■ A-31 S-FORT Tsurumai reale ■ B-05 S-RESIDENCE Esaka■ A-11 S-FORT Nakajima Koen12-31 Horoshiba-cho, Suita-shi, Osaka1-13-139, Minami Hachijo Nishi,

Chuo-ku, Sapporo

【Initiatives on environmental and social awareness】

33

Financial StrategyInternal Growth

Initiatives on SustainabilityObtainment of DBJ Green Building Certification

2-9-3 Tsurumai,Showa-ku, Nagoya-shi, Aichi

Building with high environmentaland social awareness

Building with excellent environmentaland social awareness

Building with high environmentaland social awareness

Basic Policy

Financial Strategy

34

Financial Highlight

Equity FinanceThe issuance of new investment units will be determined based on the financial environment and with consideration given to dilution of unitholder value, following a comprehensive review of the profitability of the managed asset, timing of the acquisition, LTV level, and repayment plan for interest-bearing debt, among other factors.

Debt FinanceDebt financing through execution of borrowings and issuance of investment corporation bonds (including short-term investment corporation bonds) will be carried out with consideration given to the balance between financing flexibility and financial stability.

LTV LTV levels will be determined with close consideration given to financial capacity. LTV levels will generally be kept between 45% and 55%, while the ceiling will be set at 60%.

Future Action Plans

Diversify the source of financing across Japan as well as geographical

diversification of assets

Extend remaining borrowing period with consideration given to costs

Develop new banking relation ship including regional banks

Improvement of credit rating

Diversify repayment dates

Fix interest rates

５. Operating Results and Distribution Information

■ Real estate rental revenue-Increase in rental revenue due to the

increase in the number of properties+185 million yen

-Increase in temporary income due to recording of gain on sale of real estate

+247 million yen

■ Non-operating income and loss-Increase in temporary revenue due to

refund of consumption tax +130 million yen -Increase due to borrowings related to refinancing and acquisition of new properties

-60 million yen

36

Management Forecast of the 8th and 9th Fiscal Periods

(million yen)Assumptions for Management Forecast of the 8th

and 9th Fiscal Periods■ Calculation period

The 8th fiscal period : February 1, 2019 to July 31, 2019The 9th fiscal period :August 1, 2019 to January 31, 2020

■ Asset (No. of acquired properties as of the date of this document）The 8th fiscal period：97(Note) propertiesThe 9th fiscal period : 96 properties

(Note) Includes S-FORT Sanno which scheduled to be soldon July 31, 2019

■ Period average month-end occupancy rateThe 8th fiscal period：96.3%The 9th fiscal period : 96.8%

■Balance of interest-bearing debt at end of periodThe 8th fiscal period：50,100 million yenThe 9th fiscal period：50,100 million yen

■ No. of outstanding units(No. of investment units issued and outstanding as of the date of this document)The 8th fiscal period：504,100 unitsThe 9th fiscal period : 504,100 units

■ Capital expenditures (planned amount)The 8th fiscal period：102 million yenThe 9th fiscal period : 96 million yenDifference factors between 7th FP results and 8th forecast

(Note) Management forecasts for the 8th and 9th fiscal periods are the figures disclosed in the “Summary of Financial Results for Fiscal Period Ended January 2019” announced on March 15, 2019.

(yen)

7th fiscal period(January 31,

2019)

8th fiscal periodForecast

(July 31, 2019)

Differencebetween 7th FPresults and 8th

forecast

9th fiscal periodForecast

(January 31,2020)

Differencebetween 8th FPforecast and 9th

forecast

Operating revenue 3,216 3,649 +432 3,153 -495

Operating income 3,034 3,219 +185 3,153 -66

Operating expenses 1,609 1,801 +191 1,712 -88

Real estate rental expenses 1,233 1,381 +147 1,282 -99

Miscellaneous rental expenses 433 481 +47 413 -68

Taxes and dues 113 196 +82 188 -7

Depreciation 686 703 +17 680 -22

Real Estate rental income 1,800 1,838 +37 1,871 +33

Other operating expenses 375 419 +43 430 +11

Asset management fees 226 250 +24 250 -0

Other expenses 149 168 +19 180 +11

Operating income 1,606 1,848 +241 1,440 -407

Non-operating income and loss -285 -216 +68 -330 -113

Ordinary income 1,321 1,631 +310 1,110 -521

Corporate tax, etc. 0 1 +0 1 -

Net income 1,320 1,630 +309 1,109 -521

Distribution per unit 3,076 3,722 +646 2,672 -1,050

2,620 3,234 +614 2,200 -1,034

Distribution in excess of earning per unit 456 488 +32 472 -16

Distribution per unit(Not including distribution in excess ofearnings)

2,478

2,026

2,600

2,138

2,625

2,169

2,670

2,191

2,670

2,213

2,700

2,2602,126 2,200

592 507 501 484 468 456

488 472

360851

257

- 22

予想実績予想実績予想実績予想実績予測実績予測実績予測予測

第2期第3期第4期第5期第6期第7期第8期第9期

3,076

37

2,6452,618

2,6702,675 2,681

3,722

2,672

Temporary factors due to sales of properties

Temporary factors due to refund of consumption tax

Outlook of Distribution◆ Continuing to pay stable distribution every fiscal period since listing■Distribution policy

Distribution with payout ratio aiming

for around 70%(excluding sales of properties

and refund of consumption tax)

Aim to maintain/improve distribution level

(yen)

当初予想分配金利益分配金利益超過分配金Distribution per unit (Not including distribution in excess of earnings)

Distribution in excess of earnings per unit

Initial distribution forecast (including distribution in excess of earnings)

Amount of increase in consumption tax

プレゼンター

プレゼンテーションのノート

2016/8/25　SAM　2期分配金について実績確定次第要更新

38

Distribution Policy (1) Due to the characteristics of the portfolio, the ratio of depreciation to property acquisition price tends to be large, thus

Samty Residential aims to increase fund efficiency through optimal fund allocation and improvement of unitholder value over the medium to long term.

In regards to the 7th, 8th and 9th Fiscal Periods, Samty Residential determined that it is appropriate to conduct distributions in excess of earnings in consideration of the market environment and financial conditions.

Distribution amounts are determined based on the target payout ratio aiming for 70%.

◆ Cash Management StrategyBased on the characteristics of the portfolio, Samty Residential will optimally distribute free cash flow after allocating funds to reserves for capital expenditures to maintain the building functions, etc., working capital and such, in accordance with the situations of the time.

Reinforcement of the financial base by reducing interest-bearing liabilities, etc.

Investment that should help enhance the portfolio’s profitability enhance

Return to unitholders including distribution in excess of earnings

Capital expenditures to maintain the building functions, etc.

Securement of working capital on hand, etc.

Cash will be allocated based on a comprehensive review of the external economic environment, real estate market conditions, and financial condition of Samty Residential

Optimally allocate the free cash to each measure listed below after the fund allocation mentioned above

Depreciation

Expenses related to rent business,

sales, general and administrative expenses, non-

operating expenses, etc

Rentalrevenue

Distribution(profits)

Net income

Total appraisal

valueTotal adjusted

book value (Note)

CAPEX for the following fiscal

period

39

Distribution Policy (2)

◆ Distributions in Excess of EarningsSamty Residential may decide the amount of each fiscal period's cash distributions in excess of earnings, based on the payout ratio as our management result. However, when deciding distribution in excess of earnings, the following requirements are to be fulfilled, taking into account Samty Residential’s financial conditions, amount of future capital expenditures, etc., in order to avoid undermining unitholder value.

Note: Excluding amount equivalent to incidental expenses upon acquisition

(1) Determination of distributionsWith a view to enhancing unitholder value over the medium to long term, distributions in excess of earnings are authorized when Samty Residential’s portfolio meets the below conditions.

Distribution in excess of earnings

(2) Determination of amount Amount of distributions (including distributions in excess of earnings) are determined for each fiscal period based on future capital expenditures, capital demand, etc.

Payout ratio = Total distribution amount (including distributions in excess of earnings) / (Net income + Depreciation)）

Distribute payout ratio aiming for 70%

However, distributions in excess of earnings will be up to 35% of depreciation

40

Feature of Excess of Earnings and Portfolio

Feature of Investments in Residential Properties Located in Regions outside Tokyo

A feature of investing in residential properties located in regions is its tendency to incur depreciation that is relatively large in proportion to the acquisition price of properties.

[Residential property in a region]Building: 3 billion yenLand: 1 billion yen

■Ex.: Comparison between residential properties in regions and in Greater Tokyo area(Assuming depreciation period as 50 years, NOI yield as 6.0% and 5.0% for regions and Greater Tokyo area respectively. These figures are examples and do not represent any specific property owned by Samty Residential Investment Corporation.)

[Residential property in Greater Tokyo area]Building: 3 billion yenLand: 3 billion yen

Depreciation: 60 million yen/year NOI yield： 6.0％NOI yield after depreciation ：4.5％Depreciation rate：1.5％

Depreciation： 60 million yen/year NOI yield： 5.0％NOI yield after depreciation ：4.0％Depreciation rate: 1.0％

*Depreciation rate is the ratio of depreciation to the acquisition price of properties.

Feature of Samty Residential Investment Corporation’s Portfolio

Samty Residential Investment Corporation’s portfolio is mainly comprised of relatively new properties. Furthermore, in accordance with the sponsor support agreement, exclusive negotiating rights of S-RESIDENCE series, properties newly developed and conveniently located, are granted to Samty Residential Investment Corporation by the sponsor. Therefore, this feature is believed to remain going forward.

Portfolio composition with average building age of 9.1years

1

Stable supply of newly developed properties from the sponsor

2

Ratio of CAPEX to total acquisition price of properties is expected to remain at a low level

プレゼンター


2016/8/19　SAM　右側中段の平均築年数（7月末時点）を更新済み

６. Appendix

＋24.5%

＋21.2%

＋26.2%

＋21.6%

＋20.4%

＋14.5%

＋19.8%

＋17.1%

＋17.9%

＋32.1%

(%)

43

Characteristics of Regional Residence Investments (1)

Household growth rate (Year 2000 = 100%)

Source: Prepared by Sumitomo Mitsui Trust Research Institute based on “Basic Resident Registers,” Ministry of Internal Affairs and Communications

Growth rate from 2000 to 2017

Household growth rate of major regional cities is comparable to that of Greater Tokyo Area.

Growth rates of Sapporo City and Fukuoka City surpass that of Tokyo 23 Wards.

Net Migration Number of New Housing Starts(Year 2000＝100%）

Source: Prepared by Sumitomo Mitsui Trust Research Institute based on “Basic Resident Registers,” Ministry of Internal Affairs and Communications

Source: Prepared by Samty Asset Management based on “Housing Starts Statistics (yearly),” (house for rent/reinforced concrete structure, steel framed reinforced concrete structure/residential complex)Ministry of Land, Infrastructure, Transportation and Tourism, Information Policy Division, Construction Research and Statistics Office

(Year)

プレゼンター


2016/8/19　SAM　世帯数伸び率、転入超過数更新済み　　　　　　　　　　　　　大和様、新設住宅着工数と上場J-REITのレジデンス投資状況の更新をお願いいたします。

Samty Co., Ltd. Listing First Section of the Tokyo Stock

Exchange (Securities code: 3244)Established December 1, 1982

Location of head office 4-3-24, Nishi-Nakajima, Yodogawa-ku, Osaka City

Capital 15.9 billion yen (as of the end of November 2018)

Business description

Real estate business

Property leasing business

Real estate planning and design, etc.

Operating results (consolidated basis)

Net sales 84,274 million yen(fiscal year ending November 30, 2018)

Ordinary income 11,635 million yen(fiscal year ending November 30, 2018)

Number of employees 105 (as of the end of Novemer 2018)※207 on a consolidated basis

Real estate business

Property leasing business

Other business

Planning, development and sales of for-sale condominiums for families and condominiums for investment Planning, development, regeneration and sales of income properties, etc. Operation, management and investment in real estate investment funds

Leasing and management of condominiums, office buildings, etc.

Hotel operationManagement of for-sale condominiums Construction and reform Planning of support system concerning medical care

Samty’s business

Business Model of Samty Group

44

沿革

Overview of the Samty Group

History and Business

Dec. 2011

Feb. 2011

Jul. 2007

Mar. 2005

Sep. 2002

Dec. 1982

Established Samty Kanri Co., Ltd. that is engaged in property management business

Established Tokyo Branch Office

Shares listed on the Osaka Securities Exchange's Hercules market (currently the Tokyo Stock Exchange's JASDAQ Standard).

Launched the S-Residence series of rental condominiums for real estate funds and REITs

Launched the real estate securitization business and conducted real estate securitization that was the first such operation approved by the Kinki Local Finance Bureau

Samty Development Co., Ltd. (currently Samty Co., Ltd.) established at Nakajima 1-chome, Higashi-Yodogawa Ward, Osaka City

Mar. 2016

Moved up to the First Section of the Tokyo Stock Exchange.Oct.

2015

Established Sapporo Branch OfficeMay 2015

Nov. 2012

Jun. 2012

Acquired shares in Samty Asset Management Co., Ltd. to make it a wholly-owned subsidiary

Established Fukuoka Branch Office

Established Nagoya Branch Office

Overseas market

Overseasinvestment

Domestic market

PurchaseIncome propertiesLand for development

Samty GroupSamty Residential Investment Corporation

Provide development properties

Property and operation management support

Integration of investor and group earnings through sponsor support contract

Recovery of development capital

Entrust asset and property management service

Tenants

Condominium sales companies

Sales of developed properties

Condominiums for investment

Leasing of owned properties

Rental apartment/Office buildings Commercial facilities

Shiba Inu Maru“Stand by You” Edition

Samty’s TV commercial now being

broadcasted!!

Serene and massive entrance hall

High-class elevator hall

Bright and stylish kitchen and bathroom

S-RESIDENCE Brand

S-RESIDENCEShin Osaka Ekimae

45

Condominium Brand “S-RESIDENCE” in Samty Residential’s Portfolio

“S-RESIDENCE” is a high quality, rental condominium brand developed by Samty Group since 2005.

“S-RESIDENCE” is a brand characterized by the opulent utilization of fieldstones, entrances with open spaces, luxury hotel-like indirect lighting and corridors, high quality plumbing which display a luxuriousness, etc., possess high quality designs which appeal mainly to students, workers, etc., and particularly the high relative ratio of female tenants.

Safe flat flooring by eliminating difference inlevel on the floor to prevent trips

Flat-designed floors

Image illustration

Washstand with modern taste Double lock with dimple key for high security

Bathroom heater/dryer/ventilation systemassuring comfort whentaking a bath in winter or drying clothes on rainy days

Hands-free intercom with a monitor

Self-locking system that securesdaily peace of mind and safetySecurity cameras that are effectivefor preventing vandalism and crimes are installed in the buildingand elevators

Convenient home-delivery box forreceiving parcels around-the-clock

Toilet with variety of functions such as self-cleaning and heater

Cushioned flooring with excellent sound-absorption

(Note) Appraisal value is based on the figures as of January 31, 2019 for the existing 92 properties and those as of January 1, 2019 for the 5 properties newly acquired.

■ Properties newly acquired (or scheduled to be acquired)on February 28, 2019 and March 29, 2019

▲ Properties scheduled to be sold on July 31, 2019

46

Portfolio List (1) Major Regional Cities

List of acquired properties (Number of acquired properties as of the date of this document ）

PropertyNo

Property Name Location TypeAcquisition Price

(million yen)

Appraisal Valueat End of Period

(million yen)

AppraisalNOI yield

(%)

Number ofrentable units

Major regional citiesA-01 S-FORT Shin Osaka ravir Yodogawa-ku, Osaka Single / Compact 635 685 5.3 49

▲ A-02 S-FORT Sanno Nakagawa-ku, Nagoya Single / Compact 2,890 3,270 6.1 230A-03 S-FORT Fujigaoka Meitou-ku, Nagoya Single 750 830 6.0 80A-04 S-FORT Chikushi Dori Hakata-ku, Fukuoka Compact 1,170 1,230 5.4 90A-05 S-FORT Fukuoka Kencho Mae Hakata-ku, Fukuoka Single 979 1,090 5.6 104A-06 S-FORT Takamiya Minami-ku, Fukuoka Single / Commercial 794 838 5.4 82A-07 S-FORT Tsutsujigaoka Koen Miyagino-ku, Sendai Single / Compact / Family 1,340 1,430 5.8 94A-08 S-RESIDENCE Namba Briller Naniwa-ku, Osaka Single 2,020 2,370 5.2 154A-09 S-FORT Tsurumai marks Naka-ku, Nagoya Family 1,020 1,270 5.8 42A-10 S-FORT Rokuban-cho Atsuta-ku, Nagoya Single / Commercial 722 770 5.2 56A-11 S-FORT Nakajima Koen Chuo-ku, Sapporo Compact / Family 1,590 1,670 5.7 75A-12 S-FORT Hokudai Mae Kita-ku, Sapporo Compact / Commercial 690 760 5.7 59A-13 S-RESIDENCE Kobe Isogamidori Chuo-ku, Kobe Single / Compact 2,470 2,820 5.3 166A-14 S-FORT Kyoto Nishioji Shimogyo-ku, Kyoto Single / Commercial 745 833 5.8 71A-15 S-FORT Katahira Aoba-ku, Sendai Single / Compact 2,330 2,590 5.8 191A-16 S-FORT Gakuenmae Toyohira-ku, Sapporo Single / Compact 462 490 5.7 48A-17 S-RESIDENCE Shin Osaka Ekimae Higashi Yodogawa-ku, Osaka Single / Compact 2,489 2,810 5.0 167A-18 S-FORT Aoi 1-Chome Higashi-ku, Nagoya Compact 1,080 1,130 5.1 54A-19 S-FORT Aoi Higashi-ku, Nagoya Family 870 992 5.4 28A-20 S-FORT Kurumamichi Higashi-ku, Nagoya Family 400 438 5.7 19A-21 S-FORT Kamiotai Nishi-ku, Nagoya Family 720 744 5.4 40A-22 S-FORT Tsurumai arts Naka-ku, Nagoya Family 680 805 5.8 28A-23 S-FORT Tsurumai cube Naka-ku, Nagoya Compact / Family 570 673 5.8 32A-24 S-FORT Fukuoka Higashi Hakata-ku, Fukuoka Compact 1,900 2,040 5.3 135A-25 S-RESIDENCE Kobe Motomachi Chuo-ku, Kobe Single / Compact 1,200 1,390 5.6 81A-26 S-FORT Kobe Kaguracho Nagata-ku, Kobe Single 1,858 2,180 6.1 168A-27 S-FORT Nijo-jo mae Nakagyo-ku, Kyoto Single / Compact / Family 812 872 5.2 47A-28 S-FORT Chion-in mae Higashiyamaku, Kyoto Compact / Family / Commercial 500 525 4.9 18A-29 S-FORT Miyamachi Aoba-ku, Sendai Single / Compact 1,085 1,110 5.3 91

47

Portfolio List (2) Major Regional Cities


PropertyNo


(million yen)


(million yen)

AppraisalNOI yield

(%)


Major regional citiesA-30 S-RESIDENCE Midoribashi Ekimae Higashi-ku, Osaka Single 1,846 2,040 5.1 148A-31 S-FORT Tsurumai reale Showa-ku, Nagoya Compact / Family 1,571 1,700 5.0 56A-32 S-FORT Osu Kannon Naka-ku, Nagoya Single / Compact 1,147 1,280 5.5 84A-33 S-FORT Kita-Sanno Nakagawa-ku, Nagoya Compact 841 845 4.7 36A-34 S-FORT Aratamabashi Minami-ku, Nagoya Compact 449 455 5.5 29A-35 S-FORT Toyohira Sanjyo Toyohira-ku, Sapporo Compact 762 787 5.9 63A-36 S-FORT Kitamaruyama Chuo-ku, Sapporo Compact 425 431 5.3 49A-37 S-FORT Hakata-Higashi I Hakata-ku, Fukuoka Single / Compact 389 392 5.3 35A-38 S-FORT Hakata-Higashi II Hakata-ku, Fukuoka Single / Compact 382 389 5.4 35A-39 S-FORT Kobe Sannomiya-Kita Chuo-ku, Kobe Single 515 520 5.1 45A-40 S-FORT Nakahirodori Nishi-ku, Hiroshima Single 885 897 5.3 74A-41 S-FORT Tsurumicho Naka-ku, Hiroshima Compact / Family 820 823 5.1 51A-42 S-FORT Aoba Kamisugi Aoba-ku, Sendai-shi Compact 918 1,000 5.7 66A-43 S-RESIDECE Shin Osaka Ridente odogawa-ku, Osaka-shi Single 1,338 1,420 4.6 90A-44 S-FORT Fukushima La Luna Kita-ku, Osaka-shi Single / Compact 896 934 4.6 48A-45 S-FORT Fukushima Libre Fukushima-ku, Osaka-shi Single 538 540 4.6 36A-46 S-FORT Kamiyashiro Meito-ku, Nagoya-shi Single 429 431 5.7 42A-47 S-RESIDENCE Miyanomori Chuo-ku, Sapporo-shi Family 660 682 5.4 22A-48 S-FORT Higashi-Sapporo Nordo Shiraishi-ku, Sapporo-shi Compact 303 306 5.7 24

■ A-49 S-RESIDENCE Aoi Higashi-ku, Nagoya-shi Single 1,484 1,490 4.6 95■ A-50 S-RESIDECE Shiga Hondouri Kita-ku, Nagoya-shi Single 1,150 1,160 4.8 88■ A-51 S-FORT Kobe Ogawadori Hyogo-ku, Kobe-shi Single / Compact 599 600 5.3 46




48


Portfolio List (3) Other Regional Cities

PropertyNo


(million yen)


(million yen)

AppraisalNOI yield

(%)


Other regional citiesB-01 S-FORT Shizuoka Hondori Aoi-ku, Shizuoka Compact 297 311 5.8 28B-03 S-FORT Yokkaichi motomachi Yokkaichi-shi, Mie Compact 480 551 6.9 54B-04 S-FORT Suzuka Suzuka-shi, Mie Compact 580 626 6.8 69B-05 S-RESIDENCE Esaka Suita-shi, Osaka Single / Compact 2,323 2,560 4.9 138B-06 S-FORT Utsunomiya Utsunomiya-shi, Tochigi Compact 612 653 5.9 52B-07 S-FORT Yokkaichi Nishishinchi Yokkaichi-shi, Mie Compact / Family 630 735 6.7 60B-08 S-FORT Saga Honjo Saga-shi, Saga Compact / Office 1,050 1,070 6.0 127B-09 S-FORT Saga Idaimae Saga-shi, Saga Compact 375 402 6.5 46B-10 S-FORT Nishinomiya Nishinomiya-shi, Hyogo Single / Compact 1,412 1,510 5.2 102B-11 S-FORT Nishinomiya Uegahara Nishinomiya-shi, Hyogo Single 789 813 5.0 62B-12 S-FORT Mito Chuo Mito-shi, Ibaraki Family 1,807 1,840 5.5 80B-13 S-FORT Tsu Shinmachi Tsu-shi, Mie Compact 767 836 6.2 69B-14 S-FORT Mie Daigaku-mae Tsu-shi, Mie Compact 599 645 6.2 62B-15 S-FORT Takasagomachi Oita-shi, Oita Single / Compact / Family 1,015 1,030 5.7 92B-16 S-FORT Oita Ekimae Oita-shi, Oita Single / Compact 904 911 5.7 91B-17 S-FORT Oita Otemachi Oita-shi, Oita Single 277 290 5.6 35B-18 S-FORT Suizenji Chuo-ku, Kumamoto Single / Compact 1,332 1,340 5.6 119B-19 S-FORT Kumadaibyoin-mae Chuo-ku, Kumamoto Compact 1,125 1,150 5.6 99B-20 S-FORT Kumamoto Senba Chuo-ku, Kumamoto Single / Compact / Family 1,010 1,040 5.9 91B-21 S-FORT Esaka Tarumicho Sita-shi, Osaka Single 774 793 4.9 48B-22 S-FORT Niigata Honcho Chuo-ku, Niigata Compact 960 968 5.6 83B-23 S-FORT Motohama Naka-ku, Hamamatsu Single 239 241 6.0 34

■ B-24 S-FORT Kumamoto Gofukumachi Chuo-ku, Kumamoto-shi Single / Compact 599 604 5.8 54




49


Portfolio List (4) Greater Tokyo Area

PropertyNo


(million yen)


(million yen)

AppraisalNOI yield

(%)


Greater Tokyo areaC-01 S-FORT Maita Koen Minami-ku, Yokohama Single / Compact 987 1,080 5.2 70C-02 S-FORT Nihombashi Hakozaki Chuo-ku, Tokyo Single / Compact 925 1,040 4.7 36C-03 S-FORT Itabashi Shimura Itabashi-ku, Tokyo Compact 645 692 4.8 32C-04 S-FORT Shiomi Koto-ku, Tokyo Single 866 1,030 5.3 52C-05 S-FORT Noborito Tama-ku, Kawasaki Single 666 705 4.8 40C-06 S-FORT Shonan Hiratsuka Hiratsuka-shi, Kanagawa Single 818 982 5.8 66C-07 S-FORT Nishifunabashi Funabashi-shi, Chiba Single / Compact 732 784 5.1 47C-08 S-FORT Maihama Urayasu-shi, Chiba Single 1,130 1,230 5.2 83C-09 S-FORT Ichikawa Ichikawa-shi, Chiba Single / Commercial 809 869 5.2 51C-10 S-RESIDENCE Yokosuka Chuo Yokosuka-shi, Kanagawa Single / Nursery 850 937 6.0 25C-11 S-FORT Sagamihara Sagamihara-shi, Kanagawa Single 585 623 5.2 53C-12 S-FORT Hoya Nishitokyo-shi, Tokyo Single 645 758 5.7 60C-13 S-FORT Tamagawagakuen-mae Machida-shi, Tokyo Single 587 609 4.9 45C-14 S-FORT Tsurukawa Machida-shi, Tokyo Family 520 537 5.1 30C-15 S-RESIDENCE Yokohama Tanmachi Kanagawa-ku, Yokohama-shi Single 627 701 5.0 36C-16 S-FORT Chigasaki Chigasaki-shi, Kanagawa Single / Compact 1,137 1,150 4.8 36C-17 S-FORT Kawaguchi Namiki Kawaguchi-shi, Saitama Single 1,110 1,140 4.7 70C-18 S-FORT Todakoen Toda-shi, Saitama Single 914 955 4.8 62C-19 S-FORT Funabashi Tsukada Funabashi-shi, Chiba Compact 1,900 1,940 5.0 117C-20 S-FORT Kashiwa Kashiwa-shi, Chiba Single / Compact 536 552 5.2 37C-21 S-FORT Fujimidai Nakano-ku, Tokyo Single / Compact 1,150 1,310 5.1 61C-22 S-RESIDENCE Matsudo Matsudo-shi, Chiba Single 840 854 4.6 52

■ C-23 S-RESIDENCE Motoyawata Ichikawa-shi, Chiba Single 1,678 1,680 4.6 100

Total 97 properties 93,732 100,854 5.4 6,717




50

(1) Area category Major regional cities 　　

(2) Property No. A-01 A-02 A-03 A-04 A-05 A-06 A-07 A-08

(3) Property nameS-FORT

Shin Osakaravir

S-FORTSanno

S-FORTFujigaoka

S-FORT Chikushi Dori

S-FORTFukuoka

Kencho Mae

S-FORTTakamiya

S-FORTTsutsujigaoka

Koen

S-RESIDENCENamba Briller

(4) Acquisition date Apr-15, 2015 Apr-15, 2015 Apr-15, 2015 May-01, 2015 Apr-15, 2015 May-01, 2015 Apr-15, 2015 Jul-01, 2015

Acquisition price (million yen) 635 2,890 750 1,170 979 794 1,340 2,020

Composition rate (%) 0.7 3.3 0.9 1.3 1.1 0.9 1.5 2.3

Balance sheet amount (million yen) 632 2,879 727 1,162 981 783 1,375 2,041

Total rentable area (㎡) 1,290.84 8,138.40 1,960.00 3,706.56 2,566.72 2,105.13 3,609.49 3,631.60

Leased area (㎡) 1,290.84 7,522.54 1,813.00 3,664.96 2,468.00 2,080.29 3,407.07 3,375.68

Occupancy rate (%) 100.00 92.43 92.50 98.88 96.15 98.82 94.39 92.95

(1) Number of operating days 184 184 184 184 184 184 184 184

22,761,016 107,336,555 27,912,431 43,418,997 36,748,345 28,317,611 51,644,298 65,415,937

Real estate rental revenues 20,851,177 98,058,542 26,134,247 39,647,553 34,741,462 27,090,931 45,737,771 61,269,144

Other lease business revenues 1,909,839 9,278,013 1,778,184 3,771,444 2,006,883 1,226,680 5,906,527 4,146,793

5,040,936 24,516,559 5,460,490 10,434,556 7,789,362 6,401,899 10,935,719 16,215,501

Management service fee 1,180,401 5,690,180 1,358,545 1,525,179 1,490,577 1,246,127 2,217,943 2,511,491

Taxes and dues 1,316,518 8,129,098 1,980,946 2,996,606 2,423,504 2,029,378 2,858,942 4,635,222

Utilities expenses 233,640 895,147 293,164 463,435 380,810 297,274 1,671,878 755,812

Repair Cost 794,280 4,774,000 708,000 2,787,565 1,527,890 1,067,120 1,863,240 3,123,263

Insurance expenses 33,802 179,192 46,552 94,688 62,790 61,544 83,484 105,182

Trust fees 303,877 303,877 303,877 303,877 303,877 303,877 303,877 320,724

Other lease business expenses 1,178,418 4,545,065 769,406 2,263,206 1,599,914 1,396,579 1,936,355 4,763,807

(4) NOI(＝(2)-(3)) (thousand yen) 17,720,080 82,819,996 22,451,941 32,984,441 28,958,983 21,915,712 40,708,579 49,200,436

(5) Depreciation (thousand yen) 4,678,592 26,782,686 10,178,409 10,890,955 9,280,900 8,814,702 12,360,353 13,851,054

13,041,488 56,037,310 12,273,532 22,093,486 19,678,083 13,101,010 28,348,226 35,349,382

0 797,168 464,576 669,412 278,745 - 29,036,070 -

17,720,080 82,022,828 21,987,365 32,315,029 28,680,238 21,915,712 11,672,509 49,200,436

(7)Income and

expensesinformation

(5)Price

information

(6)Leasing

information

(2) Total real estate rental income (thousand yen)

(3) Regal estate rental expenses (thousand yen)

(6) Real estate rental income（＝(4)-(5)） (thousand yen)

(7) Capital Expenditures (thousand yen)

(8) NCF（＝(4)-(7))

Income and Expenditure by Property (1)Fiscal Period Ending January 2019 (As of January 31, 2019)

51

(1) Area category Major regional cities 　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　



Tsurumai marksS-FORT

Rokuban-choS-FORT

Nakajima KoenS-FORT

Hokudai Mae

S-RESIDENCEKobe

Isogamidori

S-FORTKyotoNishioji

S-FORTKatahira

S-FORTGakuenmae

(4) Acquisition date Jul-01, 2015 Jul-01, 2015 Jul-01, 2015 Jul-01, 2015 Jul-01, 2015 Jul-01, 2015 Jul-01, 2015 Oct-01, 2015

Acquisition price (million yen) 1,020 722 1,590 690 2,470 745 2,330 462


Balance sheet amount (million yen) 1,052 714 1,634 706 2,488 751 2,288 473


Leased area (㎡) 2,706.00 1,740.86 4,777.87 2,144.22 4,372.45 1,575.40 5,134.37 1,634.11

Occupancy rate (%) 97.62 94.96 90.27 93.75 100.00 95.06 93.64 92.99


36,338,287 24,335,136 60,275,723 24,256,051 86,214,843 28,071,089 84,577,638 15,857,514



6,663,747 5,505,387 14,123,589 5,596,107 12,438,176 6,655,369 18,774,021 4,131,389

Management service fee 1,756,461 1,251,006 2,657,653 1,007,964 2,745,926 1,692,693 4,228,513 745,182

Taxes and dues 1,576,622 1,652,000 4,799,476 1,571,956 5,026,362 1,443,196 6,268,394 1,283,300

Utilities expenses 221,509 172,140 954,332 287,867 533,146 1,002,303 723,422 238,140

Repair Cost 915,592 931,180 3,204,700 788,000 1,402,417 1,179,080 4,707,878 745,000


Trust fees 303,877 303,877 320,724 303,877 320,724 303,877 303,877 283,618

Other lease business expenses 1,833,648 1,156,122 2,064,598 1,582,823 2,291,867 988,506 2,395,135 801,591

(4) NOI(＝(2)-(3)) (thousand yen) 29,674,540 18,829,749 46,152,134 18,659,944 73,776,667 21,415,720 65,803,617 11,726,125


19,966,984 11,350,834 31,833,423 13,357,315 55,399,403 14,921,145 42,500,098 6,948,266

- 111,920 8,998,674 - 438,180 - 2,176,246 2,402,073

29,674,540 18,717,829 37,153,460 18,659,944 73,338,487 21,415,720 63,627,371 9,324,052

(7)Income and

expensesinformation

(5)Price

information

(6)Leasing

information





(8) NCF（＝(4)-(7))


52

(1) Area category Major regional cities


(3) Property nameS-RESIDENCE

Shin OsakaEkimae

S-FORTAoi

1-Chome

S-FORTAoi

S-FORTKurumamichi

S-FORTKamiotai

S-FORT Tsurumai arts

S-FORTTsurumai cube

S-FORTFukuokaHigashi

(4) Acquisition date Aug-02, 2016 Aug-01, 2016 Aug-02, 2016 Aug-01, 2016 Aug-01, 2016 Aug-02, 2016 Aug-02, 2016 Aug-02, 2016

Acquisition price (million yen) 2,489 1,080 870 400 720 680 570 1,900


Balance sheet amount (million yen) 2,532 1,129 925 415 764 726 587 1,963


Leased area (㎡) 4,534.98 1,781.18 1,645.25 1,214.20 2,558.79 1,988.56 1,419.93 5,241.27

Occupancy rate (%) 100.00 81.51 89.29 100.00 97.50 100.00 97.21 93.86


85,595,888 30,879,595 26,497,684 15,475,843 27,882,535 24,309,666 20,286,130 63,947,574



14,858,996 9,433,344 6,178,230 3,311,926 5,091,847 3,507,605 5,450,088 11,308,409

Management service fee 3,164,853 1,556,512 1,230,363 890,695 1,112,751 1,236,564 1,274,711 2,167,117

Taxes and dues 4,817,886 2,230,240 1,170,175 1,040,150 2,015,922 1,208,000 995,296 3,902,044

Utilities expenses 876,401 287,065 204,606 175,659 356,057 161,613 123,354 429,598

Repair Cost 2,297,000 1,903,667 282,206 493,479 924,000 275,850 659,850 2,351,685


Trust fees 303,877 653,877 - - 303,877 - 303,877 303,877

Other lease business expenses 3,290,965 2,750,451 3,254,146 685,047 325,338 587,804 2,059,744 2,041,784

(4) NOI(＝(2)-(3)) (thousand yen) 70,736,892 21,446,251 20,319,454 12,163,917 22,790,688 20,802,061 14,836,042 52,639,165


51,737,086 14,043,764 15,424,231 9,611,932 16,065,344 16,298,390 10,664,866 39,232,811

- 1,092,385 325,203 158,378 1,056,909 - 145,708 376,095

70,736,892 20,353,866 19,994,251 12,005,539 21,733,779 20,802,061 14,690,334 52,263,070

(7)Income and

expensesinformation

(5)Price

information

(6)Leasing

information





(8) NCF（＝(4)-(7))


53



(3) Property nameS-RESIDENCE

KobeMotomachi

S-FORTKobe

Kaguracho

S-FORTNijo-jo mae

S-FORTChion-in mae

S-FORTMiyamachi

S-RESIDENCEMidoribashi

Ekimae

S-FORTTsurumai reale

S-FORT Osu Kannon

(4) Acquisition date Aug-02, 2016 Aug-02, 2016 Aug-02, 2016 Aug-02, 2016 Aug-02, 2016 Feb-01, 2018 Feb-01, 2018 Mar-01, 2018

Acquisition price (million yen) 1,200 1,858 812 500 1,085 1,846 1,571 1,147


Balance sheet amount (million yen) 1,220 1,895 819 506 1,101 1,924 1,636 1,216


Leased area (㎡) 2,169.67 4,813.05 1,735.95 1,049.01 1,828.96 3,592.65 3,447.96 2,491.16

Occupancy rate (%) 100.00 98.22 100.00 100.00 82.64 97.32 95.84 99.09


40,686,938 70,903,654 23,249,060 14,797,955 33,217,314 64,393,046 48,387,106 41,688,320


Other lease business revenues 1,374,938 4,237,296 80 53 2,830,022 3,062,431 4,363,205 2,367,208

5,410,606 11,721,258 2,070,996 1,436,993 10,758,837 7,034,560 3,973,704 3,686,959

Management service fee 1,653,844 2,331,598 - - 1,560,964 2,427,553 1,791,066 1,535,233

Taxes and dues 2,871,782 4,323,356 1,364,636 787,066 1,844,012 - - -

Utilities expenses 324,242 433,235 - 0 1,235,769 516,113 191,948 225,207

Repair Cost 98,000 1,703,512 360,945 315,460 4,752,215 1,706,269 613,646 196,945


Trust fees 303,877 303,877 303,877 303,877 303,877 303,877 303,877 303,877

Other lease business expenses 102,837 2,535,798 8,300 9,600 1,020,866 1,989,312 998,581 1,370,189

(4) NOI(＝(2)-(3)) (thousand yen) 35,276,332 59,182,396 21,178,064 13,360,962 22,458,477 57,358,486 44,413,402 38,001,361


25,343,582 46,719,752 15,086,917 9,780,481 14,480,795 44,283,664 33,583,635 30,673,768

- 905,923 114,982 - 781,333 869,203 316,757 316,757

35,276,332 58,276,473 21,063,082 13,360,962 21,677,144 56,489,283 44,096,645 37,684,604

(7)Income and

expensesinformation

(5)Price

information

(6)Leasing

information





(8) NCF（＝(4)-(7))


54




Kita-SannoS-FORT

AratamabashiS-FORT

Toyohira SanjyoS-FORT

KitamaruyamaS-FORT

Hakata-Higashi IS-FORT

Hakata-Higashi II

S-FORT Kobe

Sannomiya-Kita

S-FORT Nakahirodori

(4) Acquisition date Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018

Acquisition price (million yen) 841 449 762 425 389 382 515 885


Balance sheet amount (million yen) 877 471 799 456 410 410 543 916

Total rentable area (㎡) 1,757.61 1,699.11 2,868.75 1,613.38 1,034.20 1,034.20 884.88 2,127.92

Leased area (㎡) 1,757.61 1,640.52 2,627.35 1,582.02 918.56 976.38 767.11 2,072.74

Occupancy rate (%) 100.00 96.55 91.59 98.06 88.82 94.41 86.69 97.41


21,510,821 15,996,063 29,907,345 15,838,647 14,148,055 13,635,245 15,596,863 28,478,883


Other lease business revenues 1,176,844 1,813,434 2,804,456 710,399 2,621,264 2,194,212 485,341 1,317,743

5,016,921 1,976,855 4,203,049 4,080,030 2,161,243 1,858,146 4,398,209 3,149,882

Management service fee 1,012,861 1,000,468 1,372,541 849,110 698,359 713,638 891,556 1,485,511

Taxes and dues - - 12,528 - - - - -


Repair Cost 584,800 388,830 1,102,754 1,810,250 393,600 314,140 1,802,175 565,500


Trust fees 303,877 - 303,877 - - - - 303,877

Other lease business expenses 2,839,873 410,398 804,292 887,662 452,793 174,668 1,216,178 550,624

(4) NOI(＝(2)-(3)) (thousand yen) 16,493,900 14,019,208 25,704,296 11,758,617 11,986,812 11,777,099 11,198,654 25,329,001


10,652,588 11,303,051 18,850,501 8,429,333 9,523,472 9,294,448 8,339,683 19,921,372

475,135 358,779 316,757 932,996 228,064 114,032 2,174,387 422,342

16,018,765 13,660,429 25,387,539 10,825,621 11,758,748 11,663,067 9,024,267 24,906,659

(7)Income and

expensesinformation

(5)Price

information

(6)Leasing

information





(8) NCF（＝(4)-(7))


55




Tsurumicho

S-FORT Aoba

Kamisugi

S-RESIDENCEShin Osaka Ridente

S-FORTFukushima

La Luna

S-FORTFukushima

Libre

S-FORTKamiyashiro

S-RESIDENCEMiyanomori

S-FORTHigashi-Sapporo

Nordo

(4) Acquisition date Feb-01, 2018 Feb-01, 2018 Aug-28, 2018 Aug-28, 2018 Aug-28, 2018 Aug-28, 2018 Aug-28, 2018 Aug-28, 2018

Acquisition price (million yen) 820 918 1,338 896 538 429 660 303


Balance sheet amount (million yen) 853 952 1,390 926 565 449 689 320

Total rentable area (㎡) 2,006.49 2,072.84 2,083.41 1,473.04 900.72 1,029.42 1,954.81 1,204.96

Leased area (㎡) 1,882.87 1,950.34 2,083.41 1,473.04 850.12 1,004.91 1,954.81 1,104.76

Occupancy rate (%) 93.84 94.09 100.00 100.00 94.38 97.62 100.00 91.68


25,353,363 34,429,212 35,559,865 23,915,562 14,482,604 13,060,980 18,696,075 11,132,285


Other lease business revenues 3,334,087 2,029,503 2,716,475 1,714,129 1,724,467 870,346 385,430 2,110,510

5,858,857 3,670,099 4,009,943 2,500,439 2,839,655 2,481,584 1,534,877 1,391,465

Management service fee 1,248,691 1,557,962 1,485,985 1,115,557 736,423 702,917 909,890 561,856

Taxes and dues - 20,174 - - - - - -


Repair Cost 1,484,650 760,636 839,920 286,000 581,230 869,840 0 366,361


Trust fees 303,877 303,877 259,498 259,498 - - 259,498 -

Other lease business expenses 2,566,117 652,475 1,105,056 416,801 1,179,767 723,869 97,404 149,391

(4) NOI(＝(2)-(3)) (thousand yen) 19,494,506 30,759,113 31,549,922 21,415,123 11,642,949 10,579,396 17,161,198 9,740,820


13,707,959 23,581,933 24,779,852 17,464,097 8,963,859 7,865,230 13,842,325 7,665,948

1,680,603 316,757 123,403 150,987 263,964 753,879 - 149,931

17,813,903 30,442,356 31,426,519 21,264,136 11,378,985 9,825,517 17,161,198 9,590,889

(7)Income and

expensesinformation

(5)Price

information

(6)Leasing

information





(8) NCF（＝(4)-(7))


56

(1) Area category Other regional cities

(2) Property No. B-01 B-02 B-03 B-04 B-05 B-06 B-07 B-08


MiyamachiS-FORT

Suminodo

S-FORTYokkaichi

Motomachi

S-FORTSuzuka

S-RESIDENCEEsaka

S-FORTUtsunomiya

S-FORTYokkaichi

Nishishinchi

S-FORTSagaHonjo

(4) Acquisition date Apr-15, 2015 Apr-15, 2015 Jul-01, 2015 Jul-01, 2015 Aug-02, 2016 Aug-02, 2016 Aug-02, 2016 Aug-02, 2016

Acquisition price (million yen) 297 1,420 480 580 2,323 612 630 1,050

Composition rate (%) 0.3 0.5 0.7 2.6 0.7 0.7 1.2

Balance sheet amount (million yen) 297 0 498 593 2,365 629 671 1,059

Total rentable area (㎡) 911.40 1,691.28 2,286.69 3,739.30 2,330.64 2,192.48 4,972.84

Leased area (㎡) 651.00 1,655.61 2,286.69 3,708.55 2,286.21 2,192.48 4,972.84

Occupancy rate (%) 71.43 97.89 100.00 99.18 98.09 100.00 100.00


8,928,197 57,364,429 22,291,780 26,729,360 76,882,332 25,388,613 27,631,164 36,542,353


Other lease business revenues 411,015 16,473,176 2,326,303 4,702,965 4,120,632 1,840,856 3,696,900 1,009,327

3,612,659 12,617,872 4,464,331 8,747,558 10,513,961 7,140,013 5,675,009 3,687,635

Management service fee 942,272 1,700,091 1,410,225 1,590,173 2,515,378 1,556,363 1,505,322 -

Taxes and dues 851,528 2,878,000 1,119,234 1,629,124 4,066,294 2,297,012 1,418,000 2,968,018

Utilities expenses 205,998 1,687,202 746,373 1,194,528 352,056 463,103 931,248 -

Repair Cost 515,463 3,759,600 247,170 1,632,467 1,049,167 1,536,170 688,975 313,236


Trust fees 303,877 300,816 303,877 303,877 303,877 303,877 - 303,877

Other lease business expenses 768,257 2,140,516 599,156 2,343,217 2,132,839 936,814 1,089,624 7,600

(4) NOI(＝(2)-(3)) (thousand yen) 5,315,538 44,746,557 17,827,449 17,981,802 66,368,371 18,248,600 21,956,155 32,854,718


2,137,667 29,744,206 11,544,575 10,585,889 51,428,472 12,823,145 15,824,425 18,900,764

234,095 - - 659,033 801,746 1,715,393 220,462 1,047,557

5,081,443 44,746,557 17,827,449 17,322,769 65,566,625 16,533,207 21,735,693 31,807,161

(7)Income and

expensesinformation

(5)Price

information

(6)Leasing

information





(8) NCF（＝(4)-(7))


57

(1) Area category Other regional cities

(2) Property No. B-09 B-10 B-11 B-12 B-13 B-14 B-15 B-16

(3) Property nameS-FORTSaga

Idaimae

S-FORTNishinomiya

S-FORTNishinomiyaUegahara

S-FORTMito Chuo

S-FORTTsu Shinmachi

S-FORTMie

Daigaku-mae

S-FORTTakasagomachi

S-FORTOita

Ekimae

(4) Acquisition date Aug-02, 2016 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018

Acquisition price (million yen) 375 1,412 789 1,807 767 599 1,015 904


Balance sheet amount (million yen) 379 1,471 814 1,882 804 634 1,068 945


Leased area (㎡) 1,507.35 2,838.24 1,371.76 5,764.07 2,320.50 1,874.88 3,316.50 2,662.36

Occupancy rate (%) 100.00 98.30 88.71 88.63 94.20 100.00 92.41 100.00


12,914,932 45,415,904 24,668,405 63,184,245 32,931,625 25,351,631 41,190,051 31,721,078


Other lease business revenues 268,798 2,777,597 2,360,305 8,453,734 5,488,856 2,875,167 4,689,978 767,930

1,634,781 8,205,259 3,129,497 11,459,529 4,643,925 2,601,745 9,031,072 3,215,224

Management service fee - 2,205,319 1,588,979 3,226,118 1,508,370 1,187,868 3,339,904 1,806,332

Taxes and dues 961,266 - - - - - -7 -

Utilities expenses - 803,778 768,793 651,810 826,267 742,337 1,420,562 479,600

Repair Cost 337,150 1,399,395 409,521 5,033,969 1,220,491 95,320 2,702,144 537,380


Trust fees 303,877 303,877 303,877 303,877 303,877 - 503,877 303,877

Other lease business expenses 6,200 3,427,362 21,337 2,117,195 738,588 539,704 979,166 22,555

(4) NOI(＝(2)-(3)) (thousand yen) 11,280,151 37,210,645 21,538,908 51,724,716 28,287,700 22,749,886 32,158,979 28,505,854


6,685,138 28,756,355 17,126,946 37,350,469 21,290,255 17,911,012 21,088,543 20,553,455

127,758 1,307,149 1,333,335 1,062,336 918,595 890,763 1,973,768 429,733

11,152,393 35,903,496 20,205,573 50,662,380 27,369,105 21,859,123 30,185,211 28,076,121

(7)Income and

expensesinformation

(5)Price

information

(6)Leasing

information





(8) NCF（＝(4)-(7))


58

(1) Area category Other regional cities 　　　　　　　　　　　　

(2) Property No. B-17 B-18 B-19 B-20 B-21 B-22 B-23


OitaOtemachi

S-FORTSuizenji

S-FORTKumadaibyoin-

mae

S-FORTKumamoto

Senba

S-FORTEsaka

Tarumicho

S-FORTNiigataHoncho

S-FORTMotohama

(4) Acquisition date Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Aug-28, 2018 Aug-28, 2018 Aug-28, 2018

Acquisition price (million yen) 277 1,332 1,125 1,010 774 960 239

Composition rate (%) 0.3 1.5 1.3 1.1 0.9 1.1 0.3

Balance sheet amount (million yen) 300 1,382 1,177 1,060 807 1,040 257

Total rentable area (㎡) 905.80 4,256.91 3,459.60 3,224.24 1,267.30 2,604.25 1,010.60

Leased area (㎡) 905.80 3,883.20 3,186.75 3,038.58 1,212.71 2,392.42 921.40

Occupancy rate (%) 100.00 91.22 92.11 94.24 95.69 91.87 91.17

(1) Number of operating days 184 184 184 184 157 157 157

10,560,466 46,360,490 39,143,665 38,213,590 20,094,297 25,503,952 8,850,033

Real estate rental revenues 10,563,000 39,887,101 34,017,458 35,295,990 18,717,597 24,866,717 8,525,294

Other lease business revenues -2,534 6,473,389 5,126,207 2,917,600 1,376,700 637,235 324,739

1,388,095 7,795,416 7,368,568 4,251,267 4,042,681 3,139,266 2,194,003

Management service fee 1,047,000 2,567,440 2,233,453 1,850,456 1,121,231 1,821,263 902,508

Taxes and dues - 25,168 4,157 - - - -

Utilities expenses 64,609 2,009,422 1,681,216 331,206 143,720 296,326 151,683

Repair Cost 38,000 1,699,850 1,323,750 812,200 231,800 51,680 215,100

Insurance expenses 24,786 85,708 77,980 63,358 31,540 53,976 23,168

Trust fees - 303,877 303,877 303,877 259,498 259,498 -

Other lease business expenses 213,700 1,103,951 1,744,135 890,170 2,254,892 656,523 901,544

(4) NOI(＝(2)-(3)) (thousand yen) 9,172,371 38,565,074 31,775,097 33,962,323 16,051,616 22,364,686 6,656,030

(5) Depreciation (thousand yen) 2,651,900 10,336,178 11,495,961 10,795,984 4,583,005 6,898,780 2,179,689

6,520,471 28,228,896 20,279,136 23,166,339 11,468,611 15,465,906 4,476,341

- 3,713,447 2,644,393 1,055,856 1,034,106 248,126 1,354,661

9,172,371 34,851,627 29,130,704 32,906,467 15,017,510 22,116,560 5,301,369

(7)Income and

expensesinformation

(5)Price

information

(6)Leasing

information





(8) NCF（＝(4)-(7))


59

(1) Area category 　　　　　　　　　　Greater Tokyo area　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　　

(2) Property No. C-01 C-02 C-03 C-04 C-05 C-06 C-07 C-08


Maita Koen

S-FORTNihonbashiHakozaki

S-FORTItabashiShimura

S-FORTShiomi

S-FORTNoborito

S-FORTShonan

Hiratsuka

S-FORTNishifunabashi

S-FORTMaihama

(4) Acquisition date Apr-15, 2015 Jul-01, 2015 Jul-01, 2015 Jul-01, 2015 Jul-01, 2015 Jul-01, 2015 Jul-01, 2015 Jul-01, 2015

Acquisition price (million yen) 987 925 645 866 666 818 732 1,130


Balance sheet amount (million yen) 972 945 647 872 664 845 732 1,150


Leased area (㎡) 1,512.20 1,014.56 1,119.54 1,022.47 996.60 1,640.10 1,288.77 1,642.64

Occupancy rate (%) 93.94 91.04 100.00 98.08 97.51 95.50 92.21 95.14


32,867,573 28,448,314 19,630,834 29,304,812 21,005,751 31,000,292 24,260,332 38,068,985



8,119,108 4,824,652 6,321,368 7,257,332 4,801,335 5,749,577 4,332,169 7,041,146

Management service fee 2,188,063 1,375,306 1,218,980 1,643,307 1,220,660 1,637,601 1,340,609 1,889,689

Taxes and dues 1,984,186 1,298,360 1,302,042 1,356,548 1,088,624 1,777,720 1,359,510 1,390,794


Repair Cost 2,135,033 776,500 1,836,332 2,507,834 921,600 608,895 815,313 1,816,515


Trust fees 303,877 320,724 320,724 320,724 320,724 320,724 320,724 320,724

Other lease business expenses 1,068,511 576,931 1,341,773 881,617 1,003,688 1,172,744 261,274 936,558

(4) NOI(＝(2)-(3)) (thousand yen) 24,748,465 23,623,662 13,309,466 22,047,480 16,204,416 25,250,715 19,928,163 31,027,839


16,335,174 18,459,025 9,140,899 15,930,336 11,499,076 18,782,888 14,657,611 24,203,071

365,325 266,075 611,580 474,078 - - 890,084 3,003,324

24,383,140 23,357,587 12,697,886 21,573,402 16,204,416 25,250,715 19,038,079 28,024,515

(7)Income and

expensesinformation

(5)Price

information

(6)Leasing

information





(8) NCF（＝(4)-(7))


60

(1) Area category 　Greater Tokyo area　　　　　

(2) Property No. C-09 C-10 C-11 C-12 C-13 C-14 C-15 C-16


IchikawaS-RESIDENCEYokosuka Chuo

S-FORTSagamihara

S-FORTHoya

S-FORTTamagawagakuen-

mae

S-FORTTsurukawa

S-RESIDENCEYokohamaTanmachi

S-FORTChigasaki

(4) Acquisition date Jul-01, 2015 Aug-02, 2016 Aug-02, 2016 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018

Acquisition price (million yen) 809 850 585 645 587 520 627 1,137


Balance sheet amount (million yen) 824 876 593 667 611 545 654 1,184

Total rentable area (㎡) 1,255.90 1,492.09 1,198.26 1,177.94 978.75 1,886.70 772.38 1,382.17

Leased area (㎡) 1,187.29 1,492.09 1,085.68 1,177.94 913.50 1,823.81 772.38 1,294.80

Occupancy rate (%) 94.54 100.00 90.60 100.00 93.33 96.67 100.00 93.68


27,578,535 29,640,116 18,975,461 19,620,050 18,014,428 18,882,595 18,403,254 31,479,153


Other lease business revenues 1,291,252 120,116 1,385,730 50 370,070 2,244,685 43,254 1,440,695

8,460,216 3,777,210 5,409,441 594,183 2,369,940 2,589,287 1,652,440 3,476,060

Management service fee 2,210,480 1,417,200 1,488,769 - 1,171,186 1,415,126 1,152,120 1,352,081

Taxes and dues 1,570,814 2,288,000 1,326,656 - -513 - - -

Utilities expenses 783,014 - 364,399 - 158,424 182,468 145,763 105,100

Repair Cost 2,603,880 27,408 716,872 256,000 607,100 802,500 - 415,395


Trust fees 405,168 - 202,585 303,877 303,877 - 303,877 303,877

Other lease business expenses 846,992 4,600 1,279,254 5,500 99,260 147,341 28,004 1,263,669

(4) NOI(＝(2)-(3)) (thousand yen) 19,118,319 25,862,906 13,566,020 19,025,867 15,644,488 16,293,308 16,750,814 28,003,093


15,588,253 18,152,591 9,072,660 15,245,512 12,249,373 14,023,052 12,526,322 21,197,989

- - 1,333,282 - 2,146,908 791,762 211,171 274,522

19,118,319 25,862,906 12,232,738 19,025,867 13,497,580 15,501,546 16,539,643 27,728,571

(7)Income and

expensesinformation

(5)Price

information

(6)Leasing

information





(8) NCF（＝(4)-(7))


61

(1) Area category 　Greater Tokyo area　　

(2) Property No. C-17 C-18 C-19 C-20 C-21 C-22


KawaguchiNamiki

S-FORTTodakoen

S-FORTFunabashiTsukada

S-FORTKashiwa

S-FORTFujimidai

S-RESIDENCEMatsudo

(4) Acquisition date Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Feb-01, 2018 Aug-28, 2018 Nov-26, 2018

Acquisition price (million yen) 1,110 914 1,900 536 1,150 840

Composition rate (%) 1.3 1.0 2.2 0.6 1.3 1.0

Balance sheet amount (million yen) 1,156 957 1,966 562 1,218 876

Total rentable area (㎡) 1,457.51 1,438.71 5,640.60 983.06 2,054.86 1,180.53

Leased area (㎡) 1,290.06 1,416.13 5,640.60 827.31 1,988.21 1,180.53

Occupancy rate (%) 88.51 98.43 100.00 84.16 96.76 100.00

(1) Number of operating days 184 184 184 184 157 67

30,315,483 28,295,126 58,217,496 15,450,117 31,249,406 8,740,230

Real estate rental revenues 29,955,411 27,652,766 54,292,800 14,867,688 29,617,224 8,739,424

Other lease business revenues 360,072 642,360 3,924,696 582,429 1,632,182 806

4,564,126 3,264,708 7,621,288 2,919,468 4,020,373 658,590

Management service fee 1,821,326 1,530,326 3,078,000 1,183,364 1,869,372 470,859

Taxes and dues - - - - - -

Utilities expenses 229,406 222,251 801,678 254,536 255,465 39,404

Repair Cost 1,146,043 374,500 3,317,151 1,076,970 533,396 0

Insurance expenses 42,072 38,558 113,282 26,998 45,505 14,616

Trust fees 303,877 303,877 303,877 - 259,498 110,135

Other lease business expenses 1,021,402 795,196 7,300 377,600 1,057,137 23,576

(4) NOI(＝(2)-(3)) (thousand yen) 25,751,357 25,030,418 50,596,208 12,530,649 27,229,033 8,081,640

(5) Depreciation (thousand yen) 6,700,126 6,396,226 10,049,746 2,979,320 4,235,412 1,822,686

19,051,231 18,634,192 40,546,462 9,551,329 22,993,621 6,258,954

158,378 158,378 8,024,513 3,061,985 118,255 -

25,592,979 24,872,040 42,571,695 9,468,664 27,110,778 8,081,640

(7)Income and

expensesinformation

(5)Price

information

(6)Leasing

information





(8) NCF（＝(4)-(7))


62

Financial Documents: Balance Sheet (1) (Unit：thousand yen） (Unit：thousand yen）

前期

Previous Fiscal Year(July 31, 2018)

Current Fiscal Year(January 31, 2019)



Assets　　Current Assets

Cash and deposits 1,003,479 3,041,585 Investment and other assets Cash and deposits in trust 1,508,337 1,622,221 Investment securities 5,898 －Operating accounts receivable 9,498 7,147 Deferred tax assets 18 7Prepaid expenses 105,539 100,631 Lease and guarantee deposits 10,542 10,556Consumption tax receivable 93,769 14,808 Long-term prepaid expenses 168,125 171,662Other 4,308 169 Total investment and other assets 184,585 182,226 Total-current assets 2,724,933 4,786,565 Total non-current assets 84,332,082 90,943,120

　　Non-current assets Deferred assetProperty, plant and equipment Investment unit issuance expenses 28,229 36,364

Buildings 4,077,538 4,914,499 Investment corporation bond issuance costs 37,134 31,104 Accumulated depreciation -127,285 -188,461 Total deferred assets 65,364 67,469 Buildings, net 3,950,253 4,726,037 Total Assets 87,122,379 95,797,155

Structures － 1,066Accumulated depreciation － -11Structures, net － 1,054

Machinery and equipment 1,698 1,698Accumulated depreciation -57 -115Machinery and equipment, net 1,641 1,583

Tools, furniture and fixtures 8,990 11,839Accumulated depreciation -574 -1,359Tools, furniture and fixtures, net 8,416 10,479

Land 4,021,075 4,807,015Buildings in trust 44,176,029 46,842,428

Accumulated depreciation -2,385,167 -2,877,556Buildings in trust, net 41,790,862 43,964,872

Structures in trust 13,251 18,074Accumulated depreciation -1,177 -1,903Structures in trust, net 12,073 16,170

Machinery and equipment in trust 547,966 575,567Accumulated depreciation -66,976 -81,528Marchinery and equipment in trust, net 480,989 494,038

Tools, furniture and fixtures in trust 41,319 51,921Accumulated depreciation -9,604 -13,283

Tools, furniture and fixtures in trust, net 31,714 38,637Land in Trust 33,850,471 36,701,003

Total property, plant and equipment 84,147,497 90,760,894

63

(Unit：thousand yen）



LiabilitiesCurrent liabilities

Operating accounts payable 167,304 258,754Current portion of long-term loans payable 5,000,000 10,600,000Accounts payable – other 40,366 54,275Accrued expenses 7,258 6,985Accrued dividend 9,990 10,222Accrued consumption taxes 718 676Income taxes payable 394,805 436,917Advances received 7,787 9,008Total current liabilities 5,628,232 11,376,839

Non-current liabilities Investment corporation bonds 2,000,000 2,000,000Long-term loans payable 37,600,000 36,300,000Tenant leasehold and security deposits 46,934 52,428Tenant leasehold and security deposits in trust 363,420 371,045Total non-current liabilities 40,010,354 38,723,474

Total Liabilities 45,638,586 50,100,314Net assets Unitholders’ equity Unitholders’ capital 41,118,717 45,235,447

Amount deducted from Unitholders' capital -645,685 -859,373Unitholders’ capital, net 41,118,717 44,376,073

Surplus Unappropriated retained earnings (undisposes loss) (-) 1,010,760 1,320,767

Total surplus 1,010,760 1,320,767Total unitholders' equity 41,483,792 45,696,841Total net assets 41,483,792 45,696,841Total liabilities and net assets 87,122,379 95,797,155

Financial Documents: Balance Sheet (2)

64

(unit: thousand yen)Previous Fiscal Year

(From: February 1, 2018To: July 31, 2018)

Current Fiscal Year(From: August 1, 2018To: January 31, 2019)

Operating revenueRent revenue - real estate 2,602,421 2,792,057Other lease business revenues 273,095 242,674Silent partnership revenue 12,487 －Gain on sale of real estate, etc. － 181,777

Total operating revenue 2,888,004 3,216,510Operating expenses

Expenses related to rent business 1,200,247 1,233,859Asset management fee 127,973 226,397Asset custody fee 5,585 7,519Administrative service fees 50,018 51,491Directors’ compensations 2,400 2,400Remuneration for Accounting Auditors 10,000 12,000Other operating expenses 87,335 75,898

Total operating expenses 1,483,560 1,609,566Operating income 1,404,444 1,606,943Non-operating income

Interest income 4 5Interest on refund － 259

Total non-operating income 4 264Non-operating expenses

Interest expenses 170,670 191,254Interest expenses on investment corporation bonds 9,017 9,136Borrowing related expenses 198,840 68,295

Amortization of investment unit issuance expenses 8,352 11,267Amortization of investment corporation bond issuancecosts

5,930 6,029

Total non-operating expenses 392,812 285,982Ordinary income 1,011,635 1,321,225Net income before income taxes 1,011,635 1,321,225Income taxes – current 986 751Deferred Income taxes -6 11Total income taxes 979 762Net income 1,010,656 1,320,463Balance brought forward 103 304Unappropriated retained earnings (undisposes loss) (-)

1,010,760 1,320,767

Financial Documents：Statement of Income

65

Financial Documents：Statement of Cash Flows

(unit: thousand yen) (unit: thousand yen)Previous Fiscal Year

(From: February 1, 2018To: July 31, 2018)


Previous Fiscal Year(From: February 1, 2018

To: July 31, 2018)


Cash flows from operating activities Cash flows from investing activitiesNet income before income taxes 1,011,635 1,321,225 Purchase of property, plant and equipment -4,361,924 -1,614,850Depreciation 647,959 686,427 Purchase of property, plant and equipment in trust -27,364,071 -7,042,139Interest income -4 -5 Payment for lease and guarantee deposits -218 -33

Interest expenses 179,688 200,390 Proceeds from collection of lease and guarantee deposits 105 20

Amortization of investment unit issuance expenses 8,352 11,267 Repayments of lease and guarantee deposits received -5,780 -3,632Amortization of investment corporation bond issuancecosts

5,930 6,029 Proceeds from lease and guarantee deposits received 22,807 9,127

Decrease (increase) in operating accounts receivable -5,148 2,350Repayments of lease and guarantee deposits in trustreceived

-42,455 -39,717

Decrease (increase) in consumption taxes receivable -93,769 78,960Proceeds from lease and guarantee deposits in trustreceived

182,594 47,342

Decrease (increase) in consumption taxes payable -3,581 － Proceeds from redemption of investment securities 266,107 5,898Decrease (increase) in prepaid expenses -38,595 4,907 Cash flows from investing activities -31,302,836 -8,637,984Increase (decrease) in operating accounts payable 38,746 47,928 Cash flow from financing activitiesIncrease (decrease) in accounts payable – other 21,272 13,908 Decrease in short-term loans payable -200,000 －Increase (decrease) in advances received 131,949 42,111 Proceeds from long-term loans payable 17,900,000 4,300,000

Decrease (increase) in long-term prepaid expenses -86,635 -3,536Proceeds from issuance of investment corporationbonds

-2,500,000 －

Decrease from sales of property, plant and equipment intrust

－ 1,400,686 Proceeds from issuance of investment units 973,741 －

Other, net 25,107 1,203 Payments for investment unit issuance expenses 15,080,561 4,097,327Subtotal 1,842,907 3,813,856 Dividends paid -755,638 -1,223,912Interest income received 4 5 Cash flows from financing activities 30,498,662 7,173,414Interest expenses paid -178,834 -200,663 Net increase (decrease) in cash and cash equivalents 856,323 2,151,990Refund of income taxes － 4,155 Cash and cash equivalents at the beginning of period 1,655,494 2,511,817Income taxes – current -3,580 -793 Cash and cash equivalents at the end of period 2,511,817 4,663,807

Cash flows from operating activities 1,660,496 3,616,559

66

Fiscal period ending January

2019(Units owned by

sponsors are included)

◆ Unitholder Information

Unitholder Information (1)Number of Units and Number of Unitholders by Unitholder Type

◆ Number of units by unitholder type and number of unitholders by unitholder type

Financial Institutions(including financial dealers)

133,247 units【43.1%】


133,247 units【26.4%】

Other domestice corporations

22,751 units【7.4%】

Other domestic corporations

218,031 units【43.3%】

Overseas investors

13,291 units【4.3%】

Overseas investors

13,291 units【2.6%】

Individuals / Others

139,531 units【45.2%】

Individuals / Other

139,531 units【27.7%】

0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%

Fiscal period ending January

2019(Units owned by sponsors are not

included)

As of July 31,2017

As of January2018

As of July 31,2018

As of January2019

95,611 units 102,851 units 113,435 units 133,247 units

Other domestic corporations 31,195 units 36,482 units 209,541 units 218,031 units

(owned by sponsors) (12,374 units) (12,374 units) (185,974 units) (195,280 units)

Overseas investors 6,730 units 9,604 units 11,729 units 13,291 units

Individuals / Other 149,464 units 134,063 units 121,895 units 139,531 units

Total 283,000 units 283,000 units 456,600 units 504,100 units

Numer of units byunitholder type


As of July 31,2017

As of January2018

As of July 31,2018

As of January2019

53 people 51 people 51 people 66 people

Other domestic corporations 235 people 216 people 198 people 231 people

(owned by sponsors) (1 people) (1 people) (2 people) (2 people)

Overseas investors 53 people 58 people 58 people 67 people

Individuals / Other 16,725 people 15,493 people 14,329 people 15,895 people

Total 17,066 people 15,818 people 14,636 people 16,259 people

Number of unitholders byunitholder type


67

◆Major Unitholders (top 10) as of January 31, 2019

Unitholder Information (2) Major Unitholders

UnitholderInvestment

units(units)

Ratio(%)

Daiwa Securities Group Inc. 170,075 33.73The Master Trust Bank of Japan, Ltd. (Trust Account) 30,753 6.10Samty Co., Ltd. 25,205 5.00Japan Trustee Services Bank, Ltd. (Trust Account) 25,082 4.97Kinki Sangyo Credit Union 18,400 3.65

Daiwa PI Partners Co.Ltd. 10,858 2.15

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

10,207 2.02

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

8,964 1.77

Daido Shinyoukumiai 5,957 1.18Osaka co-sei Shinkin Bank 5,820 1.15Total of major unitholders (top 10) 311,321 61.76Total of units 504,100 100.00

プレゼンター


2016/8/19　SAM　更新済み　　　　　　　　　　　　　

Change in Investment Unit Price(June 30, 2015 to February 28, 2019)

68Source: Prepared by Samty Asset Management based on Tokyo Stock Exchange, Inc. Database

69

Disclaimer

This document has been prepared to provide information, and not for inviting investments in or recommending transaction of certain products. When purchasing the investment units of Samty Residential Investment Corporation, please contact and inquire respective securities companies. Further to the above, we request investors to make final investment decisions by their own responsibility and judgment.

This document does not constitute a disclosure document or a management report based on the Financial Instruments and Exchange Act, the Act on Investment Trusts and Investment Corporations, the listing regulations of the Tokyo Stock Exchange and other relevant laws and regulations.

The data and analysis, etc. in this document are based on the actual results of a certain period in the past, and do not guarantee the management results or their fluctuations, etc. in the future. Further to the before mentioned, the contents of this document include statements on future operating results. Such forward-looking statements do not constitute a guarantee of future operating results. Furthermore, the investment return of a real estate investment trust may become lower than the investment principal depending on the fluctuations in the price of the managed real estate properties and their profitability.

Samty Residential Investment Corporation does not guarantee the accuracy or completeness of the information provided in this document. In addition, please note that the contents of this document may be changed or removed without prior notice.

Neither Samty Residential Investment Corporation nor Samty Asset Management Co., Ltd. bears any responsibility for the outcome of the investment actions taken in accordance with this document.

Duplication and reproduction, etc. of the contents contained in this document without prior consent is prohibited.

Inquiries Regarding This DocumentSamty Asset Management Co., Ltd.(Financial instruments business operator (registration No. 2402 issued by the Director-General of the Kanto Finance Bureau (Kinsho))(Member of The Investment Trusts Association, Japan)Phone: +81-3-5224-5031

This document is not a disclosure material based on the Financial Instruments and Exchange Act.We request investors to make final investment decisions based on their own judgment.