(6 months ended November 2012) Materials for Analyst Meeting · 2013. 1. 23. · (Acquisition on December 17, 2012) 16 14 14 Forecasts for 23rd (ending May 2013) and 24th (ending

Fiscal Period 22

(6 months ended November 2012)

Materials for Analyst Meeting January 18, 2013

HF SHIROKANETAKANAWA

RESIDENCE HIROKOJI AQUA

PLACE

Kobe Kyukyoryuchi Heiwa Building

http://www.heiwa-re.co.jp/

Mita Heiwa Building

(leasehold land)

Asset Management Company

Financial Instruments Business Agent

Reg. No. 316, Director-General, Kanto Finance Bureau (Financial

Instruments and Exchange Act)

Member, The Investment Trusts Association, Japan

1 Balance Sheet 29

2 Profit and Loss Statement 30

3 Debts 31

4 Profits from Rental Business 32

5 Portfolio Map 33

6 Portfolio Overview and Performance (Office) 34

7 Portfolio Overview and Performance (Residence) 39

8 Portfolio Overview and Performance (Hotel) 52

9 Property Acquisition Routes 53

10 Historical Appraisal Values 54

11 Historical Actual NOI Return 55

12 Historical Occupancy (by property) 56

13 Condition of Collaterals 57

14 Condition of Investment Unit Price 58

1 Portfolio Data 19

2 Diversification of Investment Areas 20

3 Renewal Construction Work (NV Tomioka Bldg. and Single-

residence Hirao) 21

4 Internal Growth Data (Office) 22

5 Internal Growth Data (Residence) 23

1 Highlights of the 22nd Fiscal Period 4

2 Financial Highlights (1) 5

3 Financial Highlights (2) 6

4 External Growth (Changes to the Management Guidelines) 7

5 Internal Growth (History of Occupancy Rates) 8

6 Internal Growth (Consolidation of Property Managers; Introduction and

Development of Brand Strategy) 9

7 Financing Status (1) 10

8 Financing Status (2) 11

9 Financial Strategies (Lengthening of Average Remaining Years, Reduction of Average Interest Rate and Diversification of Repayment Periods)

12

10 Financial Strategies (Status of Lender Composition) 13

11 Condition of Interest-Bearing Liabilities 14

12 Highlights of Capital Increase through Public Offering 15

13 Properties Acquired During the 23rd Fiscal Period (Ending May 2013)

(Acquisition on December 17, 2012) 16

14 14 Forecasts for 23rd (ending May 2013) and 24th (ending November

2013) Fiscal Period Operations 17

1 Growth Strategies 25

2 Condition of Investment Unit Price 26

3 [Reference] IR Activities 27

These materials have been prepared for the sole purpose of providing information and are not intended for soliciting, encouraging, or marketing

specific products. Please contact securities firms when considering purchasing our investment securities.

The contents of these materials contain forward looking statements but these statements are not a guarantee of the future performance, management

results or financial results of Heiwa Real Estate REIT, Inc.. In addition, Heiwa Real Estate REIT, Inc. does not guarantee the accuracy or reliability of

the contents of these materials. Please note that the content of these materials may be changed or cancelled without any prior warning.

The contents of these materials may not be duplicated or transcribed without prior permission.

Table of Contents

Ⅲ Future Growth Strategies, etc. Ⅰ Overview of 22nd Fiscal Period

Ⅱ Operations of 22nd Fiscal Period

Ⅳ Appendix

Ⅰ Overview of 22nd Fiscal Period

4

Maintained high occupancy

(aiming for lease-up with repairs ahead of schedule)

Average during the 21st Fiscal Period: 95.55% → Average during the 22nd Fiscal Period: 96.25% Introduced and developed the “HF” brand

Consolidation of property management business (2 offices and 7

residences)

Implemented 18,710 million yen of finance

Significant improvement of financial base Improvement of rating R&I BBB (positive)

→ BBB＋ (stable) Acquired new rating JCR → A－ (stable)

1 Highlights of the 22nd Fiscal Period

Internal

Growth

Improved

Financial

Base

Announced first capital increase through public offering as Heiwa Real

Estate REIT in November 2012

Made changes to the Management Guidelines

(strengthened collaboration with Heiwa Real Estate)

No acquisition of new properties or sale of existing properties

during the period

External

Growth

5

2,889 2,830

3,374

4,337 4,110 4,223 4,295

915 1,218 1,486

-4,789

1,820 1,810 1,794

387 694

-5,626

1,095 1,073 1,049

734

1,317 1,375

1,550 1,574 1,550 1,560

-1,500

-1,000

-500

0

500

1,000

1,500

2,000

2,500

-6,000

-4,000

-2,000

0

2,000

4,000

6,000

8,000

10,000

16th FP 17th FP 18th FP 19th FP 20th FP 21st FP 22nd FP

（million yen）

Operating revenues (left axis)

Operating income (left axis)

Net income (left axis)

Distribution per unit (right axis)

（yen)10,868 （10,026 negative goodwill）

841

21st Fiscal Period 22nd Fiscal Period Variation Factors

Operating revenue 4,223 4,295 72 Full-period contribution of properties acquired during the previous fiscal period 113,

Existing offices (12), Residence (28)

Operating expenses 2,412 2,501 88 Full-period contribution of properties acquired during the previous fiscal period 41,

Existing offices 85, Residence (28), General and administrative expenses (8)

Operating income 1,810 1,794 (16)

Non-operating income 10 5 (5)

Non-operating expenses 747 749 2 Interest expenses 22, Borrowing related expenses 11, Interest expenses on

investment corporation bonds , etc. (23), Others (8)

Ordinary income 1,073 1,049 (23)

Net income 1,073 1,049 (23)

EPS (net income per unit) (yen) 1,541 1,507 (34)

Negative goodwill applied 5 36 30

DPS (Distribution per unit) (yen) 1,550 1,560 10

2 Financial Highlights (1)

Management Performance for 22nd Fiscal Period (Unit: million yen)

*Distribution per unit for the 16th Fiscal

Period through the 17th Fiscal Period are

divided by four since a one-for-four

investment unit split was implemented on

October 1, 2010 (18th Fiscal Period)

6

Portfolio Condition

21st Fiscal Period 22nd Fiscal Period

Overall Office Residence Hotel Overall Office Residence Hotel

Asset size (million yen) 132,159 46,646 81,333 4,180 132,159 46,646 81,333 4,180

Number of properties at period end

(properties) 88 22 62 4 88 22 62 4

Occupancy rate (%)

Period end 95.57 94.57 95.57 100.00 96.63 97.24 96.12 100.00

Period average 95.55 95.91 95.05 100.00 96.25 96.42 95.87 100.00

Portfolio NOI yield (%) (Note 1) 4.82 4.75 4.79 6.16 4.69 4.37 4.79 6.20

22nd Fiscal Period Variation Factors

Results Forecast*

Operating revenue 4,295 4,245 49 Office 20, Residence 28

Operating expenses 2,501 2,507 (6) Office (12), Residence 7, General and administrative expenses 0

Operating income 1,794 1,738 56

Non-operating income 5 1 3

Non-operating expenses 749 748 1 Interest expenses (9), Borrowing related expenses 14, Others (4)

Ordinary income 1,049 991 58

Net income 1,049 990 58

EPS (net income per unit) (yen) 1,507 1,423 84

Negative goodwill applied 36 95 (58)

DPS (Distribution per unit) (yen) 1,560 1,560 －

Figures announced in “21st Fiscal Period Financial Report” dated July 18, 2012

Comparison of Performance Forecast with Results

(Note 1) NOI yield = actual NOI (converted to annual basis) / acquisition price

(Unit: million yen)

3 Financial Highlights (2)

7

4 External Growth (Changes to the Management Guidelines)

Newly Established Section of the Management Guidelines

Concluded “Agreement to Change Letter of Agreement for Cooperative Business Alliance” with Heiwa Real Estate

Clarified investment in exceptional assets and unified investment ratios of investment areas of offices and residences

No acquisition of new properties or sale of existing properties during the period

・Basic Policy Utilizing the comprehensive strengths of Heiwa Real Estate

(1) Provision of property information from the Heiwa Real Estate Group

a. Properties held or developed by the Heiwa Real Estate Group

b. Properties brokered by Heiwa Real Estate

(2) Warehousing function, etc., of Heiwa Real Estate

(3) Property management services by the Heiwa Real Estate Group

(4) Other supports from Heiwa Real Estate

Changed Section of the Management Guidelines

・Investment Strategy ① Unified investment ratios of offices and residences as well as investment ratios of each investment area ② Clarification of investment in sokochi ③ Anticipation of acquisition of silent partnership as investment in exceptional assets

Office Residence

In principle 50% (30% to 70%) In principle 50% (30% to 70%)

Primary

Investment Area 70%~100%

Primary


Secondary


Secondary


Regional

Investment Area ※

Regional

Investment Area ※

Office Residence Exceptional assets

In principle 50% (30%

to 70%)

In principle 50% (30%

to 70%)

Within 5% of entire

portfolio

Primary

Investment Area 60~100% 60~100% ※

Secondary

Investment Area 0%~40% 0%~40% ※

Regional

Investment ※ ※ ※

*Investment in regional offices, regional residences and exceptional assets shall be limited

to 30% or less of entire portfolio

*Investment in regional offices, regional residences and exceptional assets shall be limited to

30% or less of entire portfolio

Investment ratios of the portfolio (based on acquisition price) Investment ratios of the portfolio (based on acquisition price)

8

90.00

95.00

100.00

10/12 11/1 11/2 11/3 11/4 11/5 11/6 11/7 11/8 11/9 11/10 11/11 11/12 12/1 12/2 12/3 12/4 12/5 12/6 12/7 12/8 12/9 12/10 12/11

Office occupancy rate Residence occupancy rate Hotel occupancy rate Combined occupancy rate

Maintained stable and high occupancy rates throughout the period for both offices and residences

Outperformed the previous period in both period end and period average occupancy rates

(%)

5 Internal Growth (History of Occupancy Rates)

22nd FP

【96.25%】 21st FP

【95.55%】 20th FP

【94.70%】 19th FP

【94.48%】

Hamamatsucho

SS Bldg

Nihonbashi Daiichi

Bldg Single-residence

Kyudaibyoin-mae

End of 21st Fiscal

Period 77.62% 76.42% 81.93%

End of 22nd Fiscal

Period 100.00% 89.33% 95.11%

End of 21st Fiscal Period Improved occupancy rates of low-occupancy properties

89.47% 88.97%

92.04%

94.48% 94.70%95.55%

96.25%

85.00%

90.00%

95.00%

100.00%

16th FP 17th FP 18th FP 19th FP 20th FP 21st FP 22nd FP

Period Average Combined Occupancy Rate

9

Made operations more effective through partial consolidation of consignees of property management, aiming for high-quality management

Promoted the property brand strategy so existing tenants can feel more comfortable and potential tenants will be more interested

6 Internal Growth (Consolidation of Property Managers; Introduction and Development of Brand Strategy)

Property

Number Consigned property Consignee of property management

Of-13 Shibuya AX Hills Heiwa Real Estate Co., Ltd.

Of-15 Daiwa Nakameguro Bldg

Re-03 HF ICHIKAWA RESIDENCE Haseko Livenet, Inc.

Re-09 HF KASAI RESIDENCE

Re-12 HF HIMONYA RESIDENCE Tokyu Community Co., Ltd.

Re-16 HF GAKUGEIDAIGAKU RESIDENCE

Re-18 HF HIGASHINIHONBASHI RESIDENCE Apamanshop Sublease Co., Ltd.

Re-19 HF NERIMA RESIDENCE

Re-42 Single-residence Ginza RA Asset Management Inc.

Change of Consignees of PM Services

Development of brand strategy

Changed names of 23

properties

Residence properties

Number of Consignment Cases

(as of November 30, 2012)

Apamanshop Sublease Co., Ltd. 31

Haseko Livenet, Inc. 20

RA Asset Management Inc. 3

Tokyu Community Co., Ltd. 3

Nihon Housing Co., Ltd. 3

Cosmos Initia Co., Ltd. 2

Total residence consignments 62

Heiwa Real Estate Co., Ltd. 12

MS Building Support Co., Ltd. 3

Sankei Bldg. Management Co., Ltd 3

BMS 2

Nisso Building Co., Ltd. 1

Property Partners Co., Ltd. 1

Total office consignments 22

Logotype (example)

Office: “ HF ○○Building” Residence: “ HF ○○ Residence”

New brand

*The location of the asset under management is inserted into ○○

・Providing “trust” and “security” to tenants residing in the asset under management owned by Heiwa Real Estate REIT

・The purpose is to increase appeal to potential tenants and to make leasing activities more efficient

10

Overview of investment

corporation bonds

Second unsecured

investment corporation

bond

Total amount of investment

corporation bonds 9,000 million yen

Interest rate 2.17%

Redemption date October 31, 2012

Prepared redemptions through implementation of commitment-type term loan agreements concluded during the previous fiscal period (21st Fiscal Period)

Refinanced with 5 years 7 months and 7 years, the longest refinancing period since the listing of Heiwa Real Estate REIT

Reduced financial costs, extended and diversified loan periods, diversified lenders and fixed interest rates

7 Financing Status (1)

Loan agreement Term Loan 13-A Term Loan 13-B Term Loan 13-C Term Loan 13-D

Loan amount 2,000 million yen 500 million yen 3,000 million yen 3,500 million yen

Loan period 1 year 2 years 7 months 3 years 7 months 5 years

Procured interest

rate (interest rate)

0.98966%

(1MTibor + 0.800%)

1.28430%

(3MTibor + 0.950%)

1.38430%

(3MTibor + 0.950%)

1.53430%

(3MTibor + 1.200%)

Lender

The Nomura Trust and

Banking Co., Ltd.

Mitsubishi UFJ Trust and

Banking Corporation

ORIX Bank Corporation

Sumitomo Mitsui Banking

Corporation

Aozora Bank, Ltd.

Resona Bank, Ltd.


Corporation

Aozora Bank, Ltd.

Resona Bank, Ltd.

Status at Implementation of Commitment-Type

Term Loan Agreement

Financial Overview of the 22nd Fiscal Period

Redemption of investment

corporation bonds

Banks from which loans were

newly procured during the 22nd

Fiscal Period

Shinsei Bank, Ltd.

The Nomura Trust and Banking Co., Ltd.

Mitsubishi UFJ Trust and Banking Corporation

Loan agreement Term Loan 15 Term Loan 16 Term Loan 17

Lender


Corporation

Resona Bank, Ltd.

Shinsei Bank, Ltd.


Corporation

Aozora Bank, Ltd.

Resona Bank, Ltd.

Sumitomo Mitsui Trust Bank,

Limited


Corporation

Aozora Bank, Ltd.

Resona Bank, Ltd.

Shinsei Bank, Ltd.

Loan amount 2,310 million yen 3,900 million yen 3,500 million yen

Procured interest

rate (interest rate)

1.18633%

(3MTibor + 0.858%)

1.28633%

(3MTibor + 0.958%)

1.42833%

(3MTibor + 1.100%)

Loan period 4 years 7 months 5 years 7 months 7 years 0 month

Loan agreement Term Loan 2 Term Loan 6

Lender Aozora Bank, Ltd., Resona Bank, Ltd.

Loan balance 7,760 million yen 1,950 million yen

Interest rate at

repayment 2.08500% 1.62833%

Loan period 5 years 0 month 4 years 6 months

Refinancing Status

Refinance

Status of Financial Procurement during the 22nd Fiscal Period (Total/Average)

Loan amount 18,710 million yen

Interest rate 1.33%

Loan period 4 years 8 months

Status of Financial Procurement during the 21st Fiscal Period (Total/Average)

Loan amount 9,130 million yen

Interest rate 1.72%

Loan period 4years 9 months

11

Ratio of fixed rates after application of interest rate caps

End of 21st Fiscal Period End of 22nd Fiscal Period After application of

interest rate cap

52.36% 49.04% 52.57%

Reduced the risk of interest rates increasing by purchasing interest rate caps

Implemented borrowing for part of funds to acquire property

8 Financing Status (2)

Purchasing of Interest Rate Caps

Loan agreement Term Loan 9

Notional principal 2,820 million yen

Start date January 31, 2013

End date October 31, 2015

Capped interest rate JBA 6-month

Japanese Yen TIBOR

Strike rate 0.10000%

Status of Loans after the End of the 22nd Fiscal Period

Loan agreement Term Loan 18

Lender Sumitomo Mitsui Banking Corporation

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

Loan balance 1,520 million yen

Procured interest rate

(interest rate) 0.86161%

(1MTibor + 0.650%)

Loan period 2 years 5 months

*The burden of interest payment will be reduced through the purchase of cap rates.

December 17, 2012 Borrowed as part of funds to acquire 3 properties

12

Loan balance

( million yen)

Interest

rate

(%)

Balance of interest-bearing liabilities by repayment periods

21st Fiscal Period (ending May 2012) 63,948 1.836

22nd Fiscal Period (ending November 2012) 63,858 1.609

23rd Fiscal Period (as of December 17,

2012) 65,378 1.592

0

10,000

20,000

30,000

21st 22nd 23rd 24th 25th 26th 27th 28th 29th 30th 31st 32nd 33rd 34th 35th 36th

Average remaining years to maturity:2.22

0

10,000

20,000

30,000


Implemented further lengthening of average remaining years to maturity, reduction of average procurement interest rates and diversification of loan maturities

With the 7 year term loan in October 2012, the average remaining years will be increased to 3.10 years

9 Financial Strategies (Lengthening of Average Remaining Years, Reduction of Average Interest Rate and Diversification of Repayment Periods)


0

10000

20000

30000



Procured 1,520

million yen

*The red bar represents investment corporation bonds.

13

The number of lenders increased from 10 at the end of the previous fiscal period to 13 at the end of the 22nd Fiscal Period

Secured stable procurement base through the increase of lenders and diversification of procurement amounts (addition of 3 new banks)

10 Financial Strategies (Status of Lender Composition)

Aozora Bank 27.20%

Aozora Bank 27.85%

Aozora Bank 32.42%

Sumitomo Mitsui Banking 26.10%



Resona Bank 17.84%

Resona Bank 18.27%

Resona Bank 14.37% Investment corporation

bonds 14.07%

Mizuho Trust 7.46%

Mizuho Trust 7.63%

Mizuho Trust 7.62%

Tokyo-Mitsubishi UFJ 5.72%



Sumitomo Mitsui Trust Bank 4.55%



Norinchukin 2.29%

Norinchukin 2.35%

Norinchukin 2.35%

The Bank of Fukuoka 1.53%



ORIX Bank 1.99%

ORIX Bank 2.04%

ORIX Bank 1.25%

Sompo Japan 0.73%

Sompo Japan 0.75%

Sompo Japan 0.75%

Shinsei Bank 1.53%

Shinsei Bank 1.57%

The Nomura Trust and Banking 1.53%

The Nomura Trust and Banking 1.57%

Mitsubishi UFJ Trust and Banking 1.53%

Mitsubishi UFJ Trust and Banking 1.57%

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

23rd FP(as of December 17,

2012)

22nd FP(ending November

2012)

21st FP(ending May 2012)

14

130.0 130.0 178.0 176.5 103.8 296.0 250.0 180.0 245.4 278.3 443.6 259.4 391.1 509.3

36.0 169.3

107.7 126.7

294.8

200.0 246.0

201.0

154.2 424.3

178.2

360.9

248.3

129.2

130.0 166.0

299.3 285.7 303.2

398.6

450.0 496.0 496.0 496.0

381.0 399.6

702.6

621.8 620.3 639.4 638.5

36.2 41.3

55.1

47.6

48.9

39.1 42.1

44.4 44.5 44.6

37.4 38.3 45.8 44.9 45.0 45.7

45.6

0.0

30.0

60.0

0

200

400

600

800

After IPOMar. 10,

2005

7thMay 2005

8thNov. 2005

9thMay 2006

10thNov. 2006

11thMay 2007

12thNov. 2007

13thMay 2008

14thNov. 2008

15thMay 2009

16thNov. 2009

17thMay 2010

18thNov. 2010

19thMay 2011

20thNov. 2011

21stMay 2012

22ndNov. 2012

Total (figures in red)

Interest-bearing liabilities due within 1year (maturity) (left axis)

Interest-bearing liabilities due after 1year (maturity) (left axis)

LTV (right axis)

1.243 1.177 1.155

1.368 1.306

1.866 1.835 1.837 1.826 1.902 1.931

2.055 1.896 1.864 1.836

1.609

0.000

0.500

1.000

1.500

2.000

2.500

0.5

1.0

1.5

2.0

2.5

3.0

3.5

7thMay 2005

8thNov.2005

9thMay 2006

10thNov.2006

11thMay 2007

12thNov.2007

13thMay 2008

14thNov.2008

15thMay 2009

16thNov.2009

17thMay 2010

18thNov.2010

19thMay 2011

20thNov.2011

21stMay 2012

22ndNov.2012

Average remaining years to maturity (left axis)

Average interest rates (right axis)

LTV at End of 22rd Fiscal Period: 45.6%

(Years) (%)

11 Condition of Interest-Bearing Liabilities

(Note 1) LTV = period end interest-bearing liabilities

/ period end total assets

(Note 2) Total asset figures used to calculate LTV

for “After IPO” (as of property acquisition on March

10, 2005) has not been audited

(Note 3) The balance of liabilities for each period

are indicated in red

History of Period End Interest-Bearing Liabilities and LTV

19th Fiscal

Period

20th Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

ratio of long-term

debt 71.34% 58.19% 61.17% 79.77%

Ratio of fixed-rate

debt 45.72% 45.77% 52.36% 49.04%

Average interest

rate (Note 1) 1.896% 1.864% 1.836% 1.609%

Average

procurement period

(Note 2) 3.14 years 3.68 years 4.09 years 4.07 years

Average remaining

period 1.85 years 2.10 years 2.22 years 3.10 years

LTV 44.9% 45.0% 45.7% 45.6%

(Note 1) Calculated with the period end balance of loans

(Note 2) Calculated with initial principal

(%) (100 million yen)

Average Remaining Years to Maturity and Average Interest Rates Condition of Interest-Bearing Liabilities

15

12 Highlights of Capital Increase through Public Offering

Date of resolution of

issuance November 22, 2012 (Thursday)

Pricing date December 4, 2012 (Tuesday)

Issue value 52,640 yen

Offer price 54,600 yen

Discount rate 2.50%

Number of new

investment units issued 90,500 units

Amount procured 4,763.92 million yen

Overview of Capital Increase through Public Offering Overview of Asset Acquisitions

Number of properties

acquired 3 properties

Total acquisition price 6,120 million yen

Total appraisal value 6,470 million yen

Average NOI yield 5.87%

Seller Heiwa Real Estate Co.,

Ltd.

Highlights of Capital Increase though Public Offering

End of 22nd Fiscal Period

Number of properties 88 properties

Ratio of offices 35.3%

Ratio of residences 61.5%

Total acquisition price 132.1 billion yen

Average NOI yield 4.69%

Occupancy rate 96.63%

ＬＴＶ 45.6%

After public offering

91 properties

38.2%

58.8%

138.2 billion yen

4.74% (Note 1)

96.77% (Note 2)

44.5% (Note 3)

Implemented first capital increase through public offering as Heiwa Real Estate REIT (December 2012)

The purpose of capital increase is the steady growth of the asset size and increase of stability of the portfolio’s quality and profitability in addition to the financial base

Increased the investment ratio of offices and the asset size by acquiring 3 office properties from Heiwa Real Estate (including Mita Heiwa Building (leasehold land))

Overview of Third-Party Allotment

Issue value 52,640 yen

Number of new

investment units

issued

9,050 units

Amount procured 476.39 million yen

(Note 1)

((22nd FP portfolio NOI × 2) + Total annual expected NOI of newly acquired properties) ÷ Total acquisition price

(Note 2)

(Total leased floor space at end of 22nd FP +

Total leased floor space of newly acquired

properties at time of acquisition) ÷ (Total leasable floor space at end of 22nd FP + Total

leasable floor space of newly acquired

properties at time of acquisition)

(Note 3)

Balance of interest-bearing liabilities as of

January 17, 2013 ÷ Total assets at end of 22nd FP + Increase of total assets from new

property acquisitions

16

13 Properties Acquired During the 23rd Fiscal Period (Ending May 2013) (Acquisition on December 17, 2012)

Change of Portfolio after

Acquisition

( as of December 17, 2012)

Investment Area Regional Investment Area

(Kobe City, Hyogo)

Primary Investment Area

(Minato-ku, Tokyo)

Regional Investment Area

(Nagoya City, Aichi) 3 properties total

Acquisition Price 2,310 million yen 2,230 million yen 1,580 million yen 6,120 million yen

Appraisal value 2,470 million yen 2,260 million yen 1,740 million yen 6,470 million yen

Difference with appraisal

value 160 million yen 30 million yen 160 million yen 350 million yen

Construction Completion

Date February 1998

－ (Building: May 1981)

July 2002 －

Number of Tenants 32 1 9 42

Total leasable floor space 4,839.37㎡ 4,441.79㎡ 2,889.49㎡ 12,170.65㎡

Occupancy rate at time of

acquisition 97.09% 100.00% 100.00% 98.84%

Expected NOI yield 6.60% 4.79% 6.32% 5.87%

Sakae Minami Heiwa Building

Mita Heiwa Building (leasehold land)

Kobe Kyukyoryuchi Heiwa Building

Office38.2%

Rejidence58.8%

Hotel3.0%

Property Type

Less than 5 years,

2.9%

5 years to 10 years,

54.7%10 years

to 15 years, 14.3%

15 years to 20 years, 3.0%

More than 20 years, 25.1%

Asset Age

Average asset age

12.8 year

Central 5 Wards45.6%

Tokyo 23 Wards28.0%

Metropolitan Area8.7%

Other17.6%

Primary Investment

Area73.70%

Secondary Investment

Area8.70%

Regional Investment

Area17.60%

Investment Area

17

23rd Fiscal Period Forecast of 24th Fiscal Period Forecast

Maintenance and repair fees

(of this, amount for repairs

conducted ahead of

schedule)

Negative goodwill

applied

Maintenance and repair fees

(of this, amount for repairs

conducted ahead of

schedule)

Negative goodwill

applied

357 million yen

(181 million yen) 172 million yen

134 million yen

(－) －

Key assumptions of forecasts for 24th Fiscal Period (ending November 2013)

・ No allotment from negative goodwill (distribution of 1,600 yen per unit) ・Occupancy rates: Total of portfolio 95.22% (Office 95.41%; Residence 95.13%; Hotel 100.00%)

・NOI yield: Total of portfolio 4.82% (Office 4.79%; Residence 4.78%; Hotel 6.20%)

23rd Fiscal Period / 24th Fiscal Period

End of 22nd

Fiscal Period

Result

End of 23rd

Fiscal Period

Forecast

End of 24th

Fiscal Period

Forecast

Variation

(23rd fiscal

period –

22nd fiscal

period)

Variation

(24th fiscal

period – 23rd

fiscal period)

Operating revenue 4,295 4,553 4,535 257 （17）

Operating expenses 2,501 2,732 2,579 231 （152）

Operating income 1,794 1,821 1,955 26 134

Non-operating income 5 1 1 （3） 0

Non-operating expenses 749 679 683 （60）（6）

Ordinary income 1,049 1,132 1,273 83 140

Net income 1,049 1,132 1,273 83 140

EPS (net income per unit) (yen) 1,507 1,423 1,600 （84） 177

Negative goodwill applied 36 172 0 135 (172)

DPS (Distribution per unit) (yen) 1,560 1,640 1,600 80 (40)

Outstanding investment units at

end of period (units) 695,897 795,447 795,447 99,550 －

Number of owned properties 88 91 91 3 －

(Unit: million yen)

Key assumptions of forecasts for 23rd Fiscal Period (ending May 2013)

・Negative goodwill of 172 million yen will be applied (distribution per unit before negative goodwill is applied: 1,423 yen)

・Occupancy rates: Total of portfolio 95.59% (Office 96.08%; Residence 95.51%; Hotel 100.00%)

・NOI yield: Total of portfolio 4.61% (Office 4.23%; Residence 4.80%; Hotel 6.19%)

Scheduled to implement repair work ahead of schedule for 8

office properties by utilizing negative goodwill during the

23rd Fiscal Period

(Note) Figures are those of the forecast announced on January 17, 2013.

The forecast figures are present values calculated based on certain conditions, and the actual net income and distribution may vary in accordance with changes in conditions. This forecast is also not a guarantee of the distribution amount.

14 Forecasts for 23rd (ending May 2013) and 24th (ending November 2013) Fiscal Period Operations

Forecast Distribution per Unit

23rd FP 24th FP

1,640 yen 1,600 yen

22nd Fiscal Period Results

Maintenance and repair fees (of this,

fees for repairs conducted ahead of

schedule)

(Reference) Amount allotted from

negative goodwill

263 million yen (68 million yen) 36 million yen

Factors for Changes in Distributions for the 23rd and 24th Fiscal

Periods (Public Charges and Taxes)

23rd FP 24th FP Difference Difference per

unit

276 million yen 328 million yen 52 million yen 65 yen

Ⅱ Operations of 22nd Fiscal Period

19

Average

asset age

12.8 years

History of Asset Size (based on acquisition price)

Portfolio Breakdown (as of the end of November 2012)

Property Type Residence Type Investment Area Asset Age

(Reference) Ratios of portfolio allocation by property type and

investment area as set forth in the Management Guidelines

Primary Investment Area･･･Tokyo 23 Wards Secondary Investment Area・・・Tokyo (other than Primary), major cities in Kanagawa Prefecture, Chiba Prefecture and Saitama Prefecture

Regional Investment Area・・・Major government-ordinance-designated cities other than Primary and Secondary investment areas

Asset size: 132.1 billion yen (88 properties)

Portfolio composition: Office 35.30% (22 properties), Residence 61.54% (62 properties), Hotel 3.16% (4 properties)

(Note) The figures in the graphs indicate the ratio of acquisition price of each type against the total acquisition price of each category, and are rounded to the second decimal place

1 Portfolio Data

Office Residence Exceptional

assets

In principle 50%

(30% to 70%)

In principle 50%

(30% to 70%)

Within 5% of

entire portfolio

Primary

Investment Area 60%~100% 60%~100% *

Secondary

Investment Area 0%~40% 0%~40% *

Regional

Investment Area * * *

*Investment in regional offices, regional residences and exceptional

assets shall be limited to 30% or less of entire portfolio

(100 million yen)

(Note) Total balance of assets at the end of each

period are indicated in red.

20

2.6% 4 properties 3.47 billion yen




Sapporo

Surrounding

Area of Tokyo


Metropolitan Area Total

Fukuoka 2.5%

4 properties 3.33 billion yen

Kansai

Nagoya 3.5% 3 properties 4.63 billion yen

Sendai

Office Residence Hotel

The height of the bars indicates the asset size of

each property type in each area (as of the end of

November 2012, based on acquisition price)

Tokyo 23 Wards

75.4% 59 properties 99.62

billion yen

Main investment area is the Tokyo 23 Wards

Investments will also be made in regional cities, while taking into account each area’s market conditions

(stock volume, acquisition pricing, acquisition yield, leasing market conditions, etc. as part of diversified investment)

2 Diversification of Investment Areas

21

Office

Implemented renewal of common areas at NV Tomioka Building ahead of schedule to increase tenant satisfaction and increase appeal of the property

Installed LED illumination and conducted renewal work at entrance and other areas at Single Residence Hirao to stabilize profitability

3 Renewal Construction Work (NV Tomioka Bldg. and Single-residence Hirao)

Continuous Effort (Residence)

・Promotion of making lights LED (addressing of social needs) ・Update of air-conditioning system (enhancement of functions and cost reduction)

・Renewal of common areas (enhancement of tenant satisfaction)

Continuous Effort (Office)

Residence

・Promotion of making lights LED (addressing of social needs) ・Replacement and extra installation of security cameras and security monitors; Employment of dimple keys (enhancement of security functions)

・Replacement of toilet seats to those with warm water bidets and change of flooring (enhancement of tenant satisfaction)

Renewal work of common areas of NV Tomioka Bldg.) Renewal work of common areas of Single-residence Hirao

22

6.39%

16.81%

8.47%

6.52%

6.10%

11.69% 6.63%

16.90%

5.91% 3.43%

6.81%

6.93%

7.10%

0.00%

5.00%

10.00%

15.00%

20.00%

17th FP

May 2010

18th FP

Nov. 2010

19th FP

May 2011

20th FP

Nov. 2011

21st FP

May 2012

22nd FP

Nov. 2012

23rd FP

May 2013

New tenant rate (converted to annual basis) Turnover rate (converted to annual basis)

Period End Average Rent Levels (Office)

Office End Tenant Condition (based on number of cases)

Total of 149 office tenants with diversified

business types

Office tenant turnover rate stable at a low level

Number of tenants is large and this is lowering fluctuation risk

Office Tenant Circulation Trends

(Note) The figure for the 23rd Fiscal Period (ending May 2013) is a forecast figure based on notices of

termination received by the end of the 22nd Fiscal Period (ended November 2012)

(Note 1) Period end average rent = total contracted rent at period end ÷ total operating floor space (tsubos) at period end

Average New

Tenant Rate

9.33% (yearly)

Average

Turnover Rate

7.67% (yearly)

Ranking Asset category Share of total rent

1 Office 4.95%

2 Hotel 3.67%

3 Office 2.03%

4 Office 1.84%

5 Office 1.60%

Total 14.09%

Tenants with Largest Rent Share (Includes Residence and Hotel)

4 Internal Growth Data (Office)

(Note 2) The figure in parenthesis under the 21st FP is the figure exclusive of HIROKOJI AQUA PLACE acquired in the 21st Fiscal Period.

New tenants Departures Period end New tenants Departures Period end New tenants Departures Period end

Number of

tenants6 4 143 10 9 149 14 11 149

22nd Fiscal Period21st Fiscal Period20th Fiscal Period

Service26.17%

Manufacturing18.79%

Information Communication

12.75%

Wholesale/Retail

12.08%

Financial/ Insurance

8.05%

Medical4.70%

Education, learning support

4.03%

Restaurant, Hotels4.03%

Real Estate3.36%

Construction3.36%

Transport2.68%

End of 17th Fiscal

Period

End of 18th Fiscal

Period

End of 19th Fiscal

Period

End of 20th Fiscal

Period

End of 21st Fiscal

Period (except

HIROKOJI)

End of 22nd Fiscal

Period

Monthly rent per

tsubo17,901 yen 18,577 yen 18,048 yen

17,598 yen

（17,740 yen）

16,575 yen

（17,585 yen）16,251 yen

Acquired Kayabacho

Heiwa BuildingMerger with JSR

Sold Sannomiya

Sanwa Toyo

Building

Acquired HIROKOJI

AQUA PLACE

23

41.38%

24.06%

27.73% 26.06%

30.62%

25.20% 27.27%

21.64%

28.98%

24.08%

29.05%

23.32%

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

17th FPMay 2010

18th FPNov. 2010

19th FPMay 2011

20th FPNov. 2011

21st FPMay 2012

22nd FPNov. 2012

New tenant rate (converted to annual basis)

Turnover rate (converted to annual basis)

5 Internal Growth Data (Residence)

Average New Tenant Rate

29.18% (yearly)

Maintained a high occupancy rate for residences

Residence Tenant Circulation Trends Residence Occupancy Rate by Room Type

Period End Average Rent Levels (Residence) (Including shop areas)

Present Status by Type at End of 22nd Fiscal Period (Excluding shop areas)

Average Turnover Rate

25.72% (yearly)

New tenants Departures New tenants Departures New tenants Departures

Number of tenants 514 475 604 573 497 460

New contracted rent UP DOWN UP DOWN UP DOWN

Number of residential units 98 351 192 337 129 292

22nd Fiscal Period21st Fiscal Period20th Fiscal Period

End of 17th Fiscal

Period

End of 18th Fiscal

Period

End of 19th Fiscal

Period

End of 20th Fiscal

Period

End of 21st Fiscal

Period

End of 22nd Fiscal

Period

Monthly rent per

tsubo10,643 yen 10,928 yen 11,402 yen 11,286 yen 11,242 yen 11,193 yen

Merger with JSR Sold Glenpark

Ikedayama and

Rune Higashiterao

Area (m2) ～30 ～40 ～50 ～60 ～70 ～80 ～90 ～100 100～

Number of residential units 2,645 593 408 172 70 53 47 8 5

Occupancy rate 96.89% 95.57% 95.73% 94.81% 92.92% 98.10% 95.67% 87.40% 100.00%

Rent per tsubo (yen) 11,190 yen 11,602 yen 11,173 yen 11,504 yen 10,955 yen 10,667 yen 8,466 yen 11,512 yen 6,430 yen

(Note) Excluding shop areas.

(Note) Period end average rent = total contracted

monthly rent at period end ÷total operating floor area (tsubos) at period end

Individual67.78%

Corporate32.22%

Agreement Category

Male53.81%

Female46.19%

Male and Female in Individual Contracts

Teens0.23%

20s32.78%

30s36.70%

40s15.26%

50s or above

14.64%

Unknown0.39%

Age Distribution

Room Type

(Area)

Investment

Share

Occupancy

Rate at End

of 21st

Fiscal

Period

Occupancy

Rate at End

of 22nd

Fiscal

Period

Single Type

(Lsee than

40㎡)

80.93% 95.55% 96.58%

DINKS Type

(40 m2 or

more, less

than 60 m2)

14.50% 95.28% 95.41%

DINKS Type

(40 m2 or

more, less

than 60 m2)

4.57% 96.77% 95.26%

Total 100.00% 95.63% 96.18%

Ⅲ Future Growth Strategies, etc.

25

Aim for reduction of financial costs, diversification and lengthening of borrowing periods, strengthening of

lender composition, unsecured status of loans and further upgrading of credit ratings

Aim to maintain and improve the occupancy rate and profitability

Aim for steady and stable growth by maintaining a conservative LTV level and procuring

funds from diverse sources

1 Growth Strategies

Made the first step towards steady growth with the capital increase through public offering of

approximately 5 billion yen in December 2012

Working towards stable distributions in the future

External Growth

Internal Growth

Strengthening the financial base

Fiscal

period 16th FP 17th FP 18th FP 19th FP 20th FP 21st FP 22nd FP

23rd FP

forecast

24th FP

forecast

Major efforts Sponsor change to

Heiwa Real Estate

Acquired

Kayabacho Heiwa

Building from Heiwa

Real Estate

Merged with JSR

Utilized negative

goodwill and sold

properties with low

profitability

Consolidated PM

services for offices

Standardized

collateral

Acquired

HIROKOJI AQUA

PLACE from Heiwa

Real Estate

Improvement and

new acquisition of

credit ratings

Implemented capital

increase through

public offering and

acquired 3 office

properties from Heiwa

Real Estate

－

Distributions 734 yen 1,317 yen 1,375 yen 1,550 yen 1,574 yen 1,550 yen 1,560 yen 1,640 yen 1,600 yen

Growth Strategies

26

Change in major investor during the 22nd Fiscal Period

80.00

90.00

100.00

110.00

120.00

130.00

140.00

150.00

160.00

0

2,500

5,000

7,500

10,000

December 1, 2011 February 1, 2012 April 1, 2012 June 1, 2012 August 1, 2012 October 1, 2012

Trading Value Investment Unit Price TSE REIT Index

2 Condition of Investment Unit Price

(Note) Share is the ratio of investment units owned against total investment units outstanding rounded to the second decimal place.

Name Units Owned

(units) Share (Note) (%)

1 Japan Trustee Services Bank, Ltd. (trust account) 191,522 27.52

2 Heiwa Real Estate Co., Ltd. 135,845 19.52

3 MSREF VI RIVER FIVE, LIMITED 45,249 6.50

4 Trust & Custody Services Bank, Ltd. (securities

investment trust account) 42,300 6.07

5 The Nomura Trust and Banking Co., Ltd. (trust

account) 26,287 3.77

6 The Master Trust Bank of Japan ,Ltd. (trust account) 26,184 3.76

7 NOMURA BANK (LUXEMBOURG) S.A. 9,071 1.30

8 Toyo Property Co., Ltd. 7,908 1.13

9 MLI EFG NON COLLAT NON TREATY ACCT 5,600 0.80

10 The Gibraltar Life Insurance Co., Ltd. (general

account J-REIT) 5,427 0.77

Total 495,393 71.18

Name Units Owned

(units) Share (Note) (%)

1 Japan Trustee Services Bank, Ltd. (trust account) 183,255 26.33

2 Heiwa Real Estate Co., Ltd. 102,292 14.69

3 MSREF VI RIVER FIVE, LIMITED 82,560 11.86

4 Trust & Custody Services Bank, Ltd. (securities investment

trust account) 39,504 5.67

5 The Nomura Trust and Banking Co., Ltd. (trust account) 32,791 4.71

6 The Master Trust Bank of Japan ,Ltd. (trust account) 21,522 3.09

7 NOMURA BANK (LUXEMBOURG) S.A. 11,843 1.70

8 MSREF VI RIVER SIX, LIMITED JAPAN 8,271 1.18

9 Toyo Property Co., Ltd. 7,908 1.13

10 JP MORGAN CHASE BANK 380180 6,138 0.88

Total 496,084 71.28

(Trading Value)

Investment unit price and TSE REIT Index on December 1, 2011 as 100 End of 21st Fiscal Period End of 22nd Fiscal Period

27

22nd Fiscal Period IR Briefing Activities

(May 1, 2012 ~ Nov. 30, 2012)

Date Held Participating Event

Jun. 2012

Daiwa J-REIT Fiesta 2012 (Tokyo)

Briefing for SMBC Nikko securities firm

branches (Kanagawa)

Jul. 2012


branches (Saitama)

Daiwa J-REIT Caravan (Fukuoka)

Aug. 2012


branches (Chiba)


branches (Hokkaido)

Daiwa J-REIT Caravan (Osaka)

As with last year, the website was selected as excellent in overall ranking in a survey that ranks the richness of website content of all listed companies. In fiscal 2012 the website was also selected as excellent in ranking by business type.

3 [Reference] IR Activities

Ⅳ Appendix

29

1 Balance Sheet

Share Share Share Share Share Share

（％）（％）（％）（％）（％）（％）

(Assets) (Liabilities)

Ⅰ　Current assets Ⅰ　Current Liabilities

Cash and deposits 4,070,771 4,509,004 438,232 Operateting accounts payable 360,705 467,188 106,483

Cash and deposits in trust 4,316,005 4,291,658 (24,347) Current portion of corporate bonds 9,000,000 - (9,000,000)

Operating accounts receivables 56,584 66,998 10,414 Current portion of long-term payable 15,830,000 12,920,000 (2,910,000)

Prepaid expenses 271,835 317,496 45,661 Accured expenses 632,662 613,911 (18,750)

Consumption taxes receivable 77,308 - (77,308) Income tax payable 497 490 (7)

Other 1,010 464 (546) Accured consumption taxes - 35,786 35,786

Allowance for doubtful accounts (1,576) (2,458) (882) Advances received 662,715 651,687 (11,028)

Total current assets 8,791,940 6.3 9,183,164 6.6 391,223 4.4 Derivatives liabilities 20,797 33,418 12,621

Ⅱ　Noncurrent assets Other 11,130 11,333 203

1. Property, plant and equipment Note 1 Total current liabilities 26,518,508 20.0 14,733,816 10.5 (1,132,164) (44.4)

Buildings 9,713,341 9,597,097 (116,243) Ⅱ　Noncurrent liabilities

Structures 57,323 34,270 (1,923) Long-term loans payable 39,118,700 50,938,700 3,020,000

Machinery and equipment 125,981 123,806 (2,175) Tenant leasehold and security deposits 988,849 984,745 (18,978)

Tools, furniture and fixture 39,720 44,367 4,646 Tenant leasehold and security deposits in trust 2,215,935 2,197,384 108,170

Land 27,452,042 27,452,042 - Total noncurrent liabilities 42,323,484 28.4 54,120,830 38.7 3,109,191 27.9

Buildings in trust 30,454,826 30,148,531 (306,294) Total liabilities 68,841,992 68,854,646 1,977,027 0.0

Structures in trust 231,169 234,385 3,216 (Net assets)

Machinery and equipment in trust 168,422 160,253 (8,169) Ⅰ　Unitholders' equity

Tools, furniture and fixture in trust 294,668 268,363 (26,304) 1. Unitholders' caital Note 2 59,412,331 43.1 59,412,331 42.5 - 0.0

Land in trust 60,294,474 60,294,474 - 2. Surplus

Total property, plant and equipment 128,810,840 92.1 128,357,591 91.8 (453,248) (0.4) Investment surplus 7,406,652 5.4 7,406,652 5.3 -

2. Intangible assets Unappropriated retained earnings 4,279,503 3.1 4,249,995 3.1 (22,310) (0.7)

Leasehold right 715,719 715,719 - Total surplus 11,686,155 8.5 11,656,647 8.4 (22,310) (0.3)

Leasehold right in trust 843,410 843,410 - Total unitfolders' equity 71,098,486 51.5 71,068,978 50.8 (22,311)

Other 8,346 7,162 (1,184) Ⅱ　Valuation and translation adjustments

Total intangible assets 1,567,477 1.1 1,566,292 1.1 (1,184) (0.1) Deferred hedge profit or loss (20,797) (33,418) (20,797)

3. Investment and other assets Total valuation and trabslation adjustments (20,797) (33,418) (20,797) 60.7

Guarantee deposits 10,015 10,015 - Total net assets Note 3 71,077,689 51.5 71,035,560 50.8 (43,108) (0.1)

Long-term Prepaid expenses 593,845 621,825 27,980 Tatal liabilities and net assets 139,919,681 100.0 139,890,206 100.0 1,933,919 (0.0)

Other 137,214 150,075 12,860 Note 1 The cumulated depreciation is directly subtracted from property, plant and equipment

Total investments and other assets 741,076 0.5 781,916 0.6 40,840 5.5 Cumulated depreciation

Total noncurrent assets 131,119,393 93.7 130,705,801 93.4 (413,592) (0.3) 21st f iscal period： 5,958,579 thousand yen 22th f iscal period： 6,700,085 thousand yen

Ⅲ　Deferred assets - Note 2 Total outstanding investment units

Investment unit issuance costs 4,108 1,240 2,867 21st f iscal period：695,897 units 22nd f iscal period： 695,897 units

Investment corporation bond issuance costs 4,239 - (4,239) Note 3 Net assets per investment unit

Total deferred assets 8,347 0.0 1,240 0.0 (7,106) (85.1) 21st f iscal period： 102,138yen 22nd f iscal period： 102,077yen

139,919,681 100.0 139,890,206 100.0 (29,475) 0.0

* Figures below a thousand yen have been rounded off. Percentages are show n w ith f igures rounded to the tenth place.

■　Assets (unit: thousand yen) ■　Liabilities and Unitholders' Equity (unit: thousand yen)

　　　　　　　　　　　　　　　　　　　 Period

　

　　　　　　Category

21st Fiscal Period 22nd Fiscal PeriodVariation Period

Category

21st Fiscal Period

Amount

22nd Fiscal PeriodVariation

May 31, 2012 November 30, 2012 May 31, 2012 November 30, 2012

Amount Amount Amount Amount Amount

Total assets

30

2 Profit and Loss Statement

Share Share

(％) (％)

Operating revenue Note 1

Rent revenue-real estate 3,917,302 3,995,041

305,800 4,223,103 100.0 300,538 4,295,580 100.0

Operating expenses

Note 21,840,689 1,938,100

387,588 391,538

22,398 22,591

41,370 39,664

8,006 8,006

10,000 10,000

102,384 2,412,437 57.1 91,148 2,501,050 58.2

Operating income (loss) 1,810,665 42.9 1,794,529 41.8

Non-operating income

535 572

10,251 10,788 0.3 4,617 5,190 0.1

Non-operating expenses

477,101 500,086

146,910 158,180

103,499 81,375

5,416 4,239

3,929 2,867

10,960 747,817 17.7 3,232 749,981 17.5

Ordinary income (loss) 1,073,636 25.4 1,049,737 24.4

Income (Loss) before income taxes 1,073,636 25.4 1,049,737 24.4

Income taxes-current 605 605

Income taxes-deferred 605 0.0 605 0.0

Net income (loss) 1,073,031 25.4 1,049,132 24.4

Retained earnings brought forward 3,206,471 3,200,862

4,279,503 4,249,995

　* Figures below a thousand yen have been rounded off. Percentages are show n w ith f igures rounded to the tenth place.

Note 1 The management days of each period are 183 days for the 21st f iscal period and 183 days for the 22nd fiscal period.

Note 2 The depreciation costs of this total are 719,172 thousand yen for the 21st f iscal period and 741,772 thousand yen for the 22nd fiscal period.

Asset custody fee

Amount

(unit: thousand yen)

　　　　　　　　　　　　　　　　　　　　　　　　　　　　Period

　　　　　Category

21st Fiscal Period 22nd Fiscal Period

(Dec, 1, 2011-May . 31, 2012) (Jun. 1, 2012-Nov. 30, 2012)

Amount

Interest expenses

Other lease business revenue

Unappropriated earnings (undisposed loss)

Audit fee

Directors' compensations

Administrative service fees

Expenses related to rent business

Investment unit issuance

expenses

Asset management fee

Interest income

Other operating expenses

Other

Amortization of investment

corporation bond issuance costs

Interrest expenses on investment

corporation bonds

Boppowing related expenses

Other

31

(unit: million yen)

The Nomura Trust and Banking Co., Ltd.

Sumitomo Mitsui Banking Corporation 16,304 25.5%

Resona Bank, Ltd. 11,666 18.3%

Lender Balance Share

Aozora Bank, Ltd. 17,784 27.9%

Sumitomo Mitsui Trust Bank, Limited 2,972 4.7%

The Norinchukin Bank 1,500 2.3%

Mizuho Trust & Banking Co., Ltd. 4,874 7.6%

The Bank of Tokyo-Mitsubishi UFJ, Ltd. 2,979 4.7%

ORIX Bank Corporation 1,300

1,000

2.0%

1.6%

1.6%

Sompo Japan Insurance Inc. 477 0.7%

Shinsei Bank, Limited 1,000 1.6%

The Bank of Fukuoka 1,000 1.6%

Mitsubishi UFJ Trust and Banking Corporation 1,000

63,858 100.0%Total

Loans Lenders’ Share

22nd Fiscal Period End

(November 30, 2012)

3 Debts

21st Fiscal Period End

(May 31, 2012) (unit: million yen)

Total

Lender

Aozora Bank, Ltd.

Sumitomo Mitsui Banking Corporation

Resona Bank, Ltd.

Mizuho Trust & Banking Co., Ltd.


Sumitomo Mitsui Trust Bank, Limited

The Norinchukin Bank

The Bank of Fukuoka


Sompo Japan Insurance Inc.

REIT Bonds

9,191

4,874

1,000

800

ShareBalance

477

9,000

63,948

32.4%

17.9%

14.4%

7.6%

4.7%

3.1%

2.3%

1.6%

1.3%

0.7%

14.1%

100.0%

20,734

11,419

2,979

1,972

1,500

(As of Nov. 30, 2012)


Subtotal 12,920

Aozora Bank, Ltd.October 27,

20102,910 2.23000

DescriptionLender

The Nomura Trust and Banking Co., Ltd. October 25,

20122,000 0.98000

Breakdown

Borrowing Date

Balance at

Period End

(million yen)

Interest Rate

(%)

Repayment

Date

October 31,

2013Mitsubishi UFJ Trust and Banking Corporation

Secured and

Unguaranteed


Resona Bank, Ltd.

Sumitomo Mitsui Banking CorporationMarch 31,

20116,070 1.52833

March 31,

2013Resona Bank, Ltd.


Aozora Bank, Ltd.October 27,

20104,850 1.93000

October 31,

2013

October 31,

2015

Secured and

Unguaranteed


Resona Bank, Ltd.

Aozora Bank, Ltd.

May 31, 2011 6,554 1.80336May 30,

2014

Resona Bank, Ltd.

4,000 2.14200May 31,

2016

Resona Bank, Ltd.







Aozora Bank, Ltd.

May 31, 2011

Sompo Japan Insurance Inc.

Sumitomo Mitsui Banking Corporation October 31,

20115,857 1.52833

October 31,

2016Aozora Bank, Ltd.

Resona Bank, Ltd.


October 31,

20115,777 1.32833

October 31,

2014

Aozora Bank, Ltd.


The Norinchukin Bank

The Bank of Fukuoka


March 31,

20123,000 1.37833

October 30,

2015

May 31,

20126,130 1.89206

October 31,

2017

Aozora Bank, Ltd.



Aozora Bank, Ltd.

Resona Bank, Ltd.

ORIX Bank CorporationOctober 25,

2012500 1.28430


20123,000 1.38430

May 31,


May 31,

2018

Aozora Bank, Ltd.

Resona Bank, Ltd.

October 31,

2017Aozora Bank, Ltd.

Resona Bank, Ltd.


20122,310 1.18633

May 31,


Shinsei Bank, Limited


20123,500 1.53430

Subtotal 50,938

63,858


October 31,

20123,500 1.42833

October 31,

2019

Aozora Bank, Ltd.

Resona Bank, Ltd.

Shinsei Bank, Limited

Total

Long-term

Borrowings


October 31,

20123,900 1.28633

May 31,

2015

Long-term

Borrowings

Due within

One Year

32


4 Profits from Rental Business

Total 21st Fiscal Period 22nd Fiscal Period

Rents and common expenses 3,917,302 3,995,041

Other income 305,800 300,538

Rental business income total 4,223,103 4,295,580

PM fees 468,002 438,705

Public charges and taxes 273,815 260,405

Utilities 117,986 138,464

Maintenance and repair fees 176,989 263,333

Insurance fees 6,156 6,409

Trust fees 45,654 47,753

Other expenses 32,911 41,255

Rental business expenses total 1,121,516 1,196,328

NOI 3,101,586 3,099,251

Depreciation 719,172 741,772

Rental business profit 2,382,414 2,357,479

Office 21st Fiscal Period 22nd Fiscal Period


Other income 139,976 175,765


PM fees 129,430 143,950


Utilities 85,909 107,055



Trust fees 9,786 10,069


Rental business expenses total 408,965 516,828

NOI 1,026,770 1,019,961


Rental business profit 836,329 810,530

Residence 21st Fiscal Period 22nd Fiscal Period


Other income 165,824 124,773


PM fees 338,572 294,754


Utilities 32,076 31,409



Trust fees 33,567 35,384



NOI 1,946,029 1,949,657


Rental business profit 1,452,353 1,452,371

Hotel 21st Fiscal Period 22nd Fiscal Period

Rents and common expenses 148,758 148,758

Other income - -

Rental business income total 148,758 148,758

PM fees - -


Utilities - -

Maintenance and repair fees - -

Insurance fees 272 278

Trust fees 2,300 2,300

Other expenses - -


NOI 128,787 129,632


Rental business profit 93,731 94,577

33

Shinjuku Ward

Shinjuku Stn.

Shibuya Ward

Shibuya Stn. Minato Ward

Chiyoda Ward

Tokyo Stn.

Chuo Ward

Shinagawa Stn.

Office Residence Hotel

5 Portfolio Map

Tokyo 23 wards and

Tokyo metropolitan area

32 propertiesOffice 7 Residence 24 Hotel 1

Acquisition price: 50.78 billion yen

Tokyo central 5 wards

34 propertiesOffice 14 Residence 20


Other areas

22 propertiesOffice 1 Residence 18 Hotel 3


34

Property Name Of-01 Asahi Life Insurance

Gotanda Building

Of-05 Suitengu Heiwa

Building

Of-06 NV Tomioka

Building

Of-07 Hamamatsucho SS

Building

Of-08 Kokusai Tameike

Building

Address Shinagawa Ward, Tokyo Chuo Ward, Tokyo Koto Ward, Tokyo Minato Ward, Tokyo Minato Ward, Tokyo

Lot Area (m2) 605.72 316.73 748.36 294.50 533.32

Total Floor Area (m2) 2,921.56 2,177.81 4,558.01 2,184.76 3,089.73

Constructed May 1980 August 1991 December 1990 December 1991 February 1992

Occupancy Rate (%) 92.84 100.00 100.00 100.00 100.00

Acquisition Price (mm yen) 1,290 1,550 2,500 1,530 2,700

Appraisal Price (mm yen) 1,197 1,225 2,230 1,470 2,460

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

Operation days 183 183 183 183 183 183 183 183 183 183

Rents and common expenses 47,701 42,141 42,802 45,366 82,843 82,843 46,841 46,117 72,132 72,873

Other income 4,393 3,908 4,815 5,890 9,275 11,020 5,598 5,334 7,775 9,421

Rental business income total 52,095 46,049 47,618 51,257 92,118 93,864 52,440 51,452 79,907 82,294

PM fees 5,978 6,284 7,190 6,680 11,493 11,400 4,780 5,327 6,323 5,781

Public charges and taxes 5,351 5,356 5,121 4,841 6,187 5,869 6,978 6,563 7,611 7,195

Utilities 3,220 3,209 4,552 5,392 8,439 9,216 3,782 4,259 5,354 6,733

Maintenance and repair fees 3,567 2,796 2,783 26,880 6,047 1,189 4,596 1,120 1,744 5,099

Insurance fees 84 86 64 65 119 121 59 60 90 91

Trust fees 1,025 1,025 690 690 900 900 750 750 1,366 1,366

Other expenses 504 898 64 384 580 1,135 576 78 107 172

Rental business expenses total 19,731 19,656 20,467 44,934 33,767 29,833 21,522 18,160 22,598 26,439

NOI 32,363 26,393 27,151 6,323 58,351 64,030 30,917 33,292 57,308 55,854

Depreciation 6,234 6,738 7,668 7,855 15,678 16,105 6,323 6,554 6,346 6,812

Rental business profit 26,128 19,655 19,483 (1,532) 42,672 47,925 24,594 26,737 50,962 49,041

6 Portfolio Overview and Performance (Office)


35

Property Name Of-09 Grace Building

Sengakujimae

Of-10 Nisso Dai 15

Building

Of-11 Nihonbashi Daiichi

Building

Of-12 Hatchobori SF

Building Of-13 Shibuya AX Hills

Address Minato Ward, Tokyo Yokohama City, Kanagawa Chuo Ward, Tokyo Chuo Ward, Tokyo Shibuya Ward, Tokyo

Lot Area (m2) 538.50 668.00 520.69 543.31 160.42


Constructed June 1994 February 1993 March 1988 October 1991 March 2006

Occupancy Rate (%) 100.00 100.00 89.33 100.00 84.35


Appraisal Price (mm yen) 1,450 1,220 1,700 2,310 1,330

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

Operation days 183 183 183 183 183 183 183 183 183 183


Other income 14,584 9,261 3,685 3,685 11,832 7,404 5,718 6,366 5,315 6,536


PM fees 6,694 5,161 712 1,865 7,030 7,712 6,697 7,069 3,339 2,815


Utilities 4,876 5,683 - - 4,056 4,255 4,448 5,049 2,621 2,948

Maintenance and repair fees 811 855 2,235 12,040 7,036 25,668 17,745 19,519 1,269 507

Insurance fees 71 73 116 119 95 97 101 102 37 37

Trust fees 699 699 - - 1,255 1,255 - - - -

Other expenses 5,386 5,009 14 61 499 294 620 289 39 56


NOI 47,162 43,431 43,401 32,526 38,316 8,211 32,019 33,141 26,676 28,437

Depreciation 6,152 6,440 16,937 16,915 10,753 11,619 7,800 8,282 4,650 4,653

Rental business profit 41,009 36,990 26,464 15,610 27,562 (3,408) 24,218 24,859 22,026 23,783



36

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

Operation days 183 183 183 183 183 183 183 183 183 183


Other income 162 162 14,274 15,423 4,304 9,385 2,734 2,123 8,937 12,450


PM fees 5,026 5,171 6,830 6,551 2,953 2,324 2,809 3,101 5,255 7,580


Utilities 165 168 6,765 7,766 2,959 2,651 2,279 2,308 4,611 5,308

Maintenance and repair fees 396 - 3,554 914 1,973 815 3,544 9,165 571 4,945

Insurance fees 44 45 116 119 41 41 38 39 44 44

Trust fees - - - - - - - - 1,401 1,401

Other expenses 73 304 221 372 371 1,305 87 54 225 218


NOI 24,014 24,235 57,418 60,634 26,614 30,164 16,505 11,776 93,957 88,102

Depreciation 3,891 4,103 14,498 14,854 8,378 8,425 3,932 4,015 8,571 8,612

Rental business profit 20,123 20,131 42,920 45,779 18,236 21,739 12,572 7,760 85,385 79,489

Property Name Of-14 KCA Building Of-15 Daiwa Nakameguro

Building

Of-16 Anwa Tsukasacho

Building

Of-17 Hatchobori MF

Building Of-18 M2 Harajuku

Address Chiyoda Ward, Tokyo Meguro Ward, Tokyo Chiyoda Ward, Tokyo Chuo Ward, Tokyo Shibuya Ward, Tokyo

Lot Area (m2) 224.17 1,078.04 251.95 205.83 264.36


Constructed November 1987 February 1988 October 1990 January 1988 January 1970

Occupancy Rate (%) 89.49 100.00 90.38 100.00 100.00


Appraisal Price (mm yen) 1,034 2,130 1,070 897 3,903



37

Property Name Of-20 Funabashi Face

Building Of-21 Adesso Nishiazabu

Of-22 CIC Toranomon

Building Of-23 Aria Ikebukuro

Of-24 CIC Yushima

Building

Address Funabashi City, Chiba Minato Ward, Tokyo Minato Ward, Tokyo Toshima Ward, Tokyo Bunkyo Ward, Tokyo

Lot Area (m2) 488.13 125.91 260.55 188.31 400.86

Total Floor Area (m2) 4,033.72 371.59 1,489.21 1,376.66 2,393.53

Constructed April 2003 October 2003 November 1990 December 1993 July 1989

Occupancy Rate (%) 100.00 100.00 86.51 100.00 100.00

Acquisition Price (mm yen) 3,900 640 1,675 1,314 1,434

Appraisal Price (mm yen) 3,100 430 1,237 1,040 1,320

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

Operation days 183 183 183 183 183 183 183 183 183 183


Other income 4,601 4,770 798 1,510 2,746 2,830 4,448 6,718 4,823 4,792


PM fees 17,588 17,766 928 891 3,825 2,985 2,878 4,228 5,114 5,662

Public charges and taxes 7,890 7,664 803 773 3,900 3,638 2,260 2,124 2,651 2,452

Utilities 7,258 8,060 1,339 1,587 1,995 1,991 3,006 3,367 2,741 2,988

Maintenance and repair fees - - 831 1,702 774 2,103 467 11,440 2,710 9,827

Insurance fees 113 114 13 14 45 46 38 39 63 64

Trust fees - - 391 391 - - - - - -

Other expenses 14 11 52 11 243 117 429 661 4,472 4,148


NOI 92,174 91,590 9,738 8,361 28,018 26,319 28,368 10,724 35,590 28,169

Depreciation 20,015 20,015 2,281 2,281 3,792 3,999 4,596 4,777 6,215 6,307




38

Property Name Of-25 Kayabacho HEIWA

Building

Of-26 HIROKOJI AQUA

PLACE

Address Chuo Ward, Tokyo Nagoya City, Aichi

Lot Area (m2) 811.59 1,389.39

Total Floor Area (m2) 5,038.57 9,521.09

Constructed April 1992 May 2008

Occupancy Rate (%) 100.00 95.16

Acquisition Price (mm yen) 4,798 2,930

Appraisal Price (mm yen) 5,230 3,756

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

Operation days 183 183 63 183

Rents and common expenses 200,809 200,809 40,903 126,452

Other income 9,441 9,255 9,709 37,512

Rental business income total 210,250 210,065 50,612 163,965

PM fees 10,234 9,267 5,745 18,321

Public charges and taxes 9,460 8,839 - -

Utilities 9,437 9,256 1,997 14,852

Maintenance and repair fees 1,031 1,304 91 1,101

Insurance fees 153 154 99 294

Trust fees 1,148 1,148 158 441

Other expenses 263 242 340 564

Rental business expenses total 31,728 30,212 8,432 35,575

NOI 178,521 179,852 42,179 128,389

Depreciation 11,642 11,626 14,079 28,431

Rental business profit 166,879 168,225 28,100 99,958



39

Property Name Re-03

HF ICHIKAWARESIDENCE

Re-05

HF MEGURO RESIDENCE

Re-09

HF KASAI RESIDENCE

Re-11 HF WAKABAYASHI-

KOEN RESIDENCE

Re-12

HF HIMONYA RESIDENCE

Address Ichikawa City, Chiba Meguro Ward, Tokyo Edogawa Ward, Tokyo Setagaya Ward, Tokyo Meguro Ward, Tokyo

Lot Area (m2) 218.22 213.45 416.87 2,892.06 856.19

Total Floor Area (m2) 884.60 948.48 1,392.74 6,689.03 2,412.83

Constructed March 2003 April 2003 November 2002 February 2004 February 2004

Occupancy Rate (%) 100.00 95.07 89.56 96.06 95.50

Acquisition Price (mm yen) 430 660 650 3,610 1,560

Appraisal Price (mm yen) 454 536 619 3,426 1,418

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

Operation days 183 183 183 183 183 183 183 183 183 183


Other income 26 - 452 180 1,803 1,426 11,501 10,044 3,133 2,089


PM fees 1,642 1,485 3,502 1,977 2,803 2,435 11,186 8,219 6,305 5,871

Public charges and taxes 760 734 1,063 996 1,341 1,255 7,006 6,543 2,677 2,519

Utilities 191 202 279 275 282 292 1,247 1,246 414 440

Maintenance and repair fees 106 1,055 486 333 231 2,665 5,431 4,693 1,055 1,461

Insurance fees 19 20 22 22 28 29 169 172 55 56

Trust fees 577 777 603 603 603 803 879 879 655 855

Other expenses 30 252 50 109 252 710 878 906 125 327


NOI 13,978 12,751 12,161 15,466 18,738 15,736 88,015 93,187 33,767 33,304

Depreciation 2,687 2,747 3,281 3,288 4,068 4,115 22,455 22,472 7,408 7,425


7 Portfolio Overview and Performance (Residence)


40

Address Minato Ward, Tokyo Minato Ward, Tokyo Meguro Ward, Tokyo Chiyoda Ward, Tokyo Chuo Ward, Tokyo

Lot Area (m2) 279.73 499.24 268.70 262.07 312.76


Constructed April 2004 January 2005 March 2005 June 2005 June 2005

Occupancy Rate (%) 91.68 96.20 82.54 96.88 97.53


Appraisal Price (mm yen) 1,169 1,020 817 1,090 1,260

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

Operation days 183 183 183 183 183 183 183 183 183 183


Other income 1,971 1,100 2,807 2,033 1,196 795 2,196 1,594 1,849 2,032


PM fees 5,935 3,803 5,337 2,965 3,113 2,918 3,788 3,428 4,065 4,957


Utilities 396 418 321 322 397 404 304 311 451 492

Maintenance and repair fees 1,889 1,180 891 374 1,103 1,130 1,094 992 854 688

Insurance fees 39 39 39 40 37 37 44 44 58 59

Trust fees 631 631 629 629 548 748 574 574 592 792

Other expenses 147 198 180 172 74 130 48 138 48 256


NOI 25,152 27,181 21,340 25,759 19,630 18,605 28,274 27,450 32,036 30,518

Depreciation 5,293 5,328 8,740 8,753 5,121 5,125 10,834 10,846 11,789 11,803




Property Name

Re-14

HF MINAMIAZABU

RESIDENCE

Re-15

HF AZABUJUBAN

RESIDENCE

Re-16

HF GAKUGEIDAIGAKU

RESIDENCE

Re-17

HF HIGASHIKANDA

RESIDENCE

Re-18

HF HIGASHINIHONBASHI

RESIDENCE

41

Address Nerima Ward, Tokyo Minato Ward, Tokyo Setagaya Ward, Tokyo Chuo Ward, Tokyo Nerima Ward, Tokyo

Lot Area (m2) 368.67 922.21 485.01 222.40 536.09


Constructed May 2005 August 2005 June 2005 May 2005 May 2006

Occupancy Rate (%) 98.08 97.90 94.30 98.27 88.54

Acquisition Price (mm yen) 690 4,030 1,070 1,130 950

Appraisal Price (mm yen) 665 3,780 832 918 852

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

Operation days 183 183 183 183 183 183 183 183 183 183


Other income 1,185 1,019 9,132 7,554 2,300 682 1,752 412 5,906 2,219


PM fees 2,648 2,498 15,644 13,386 4,414 3,329 3,348 2,791 3,750 3,842


Utilities 250 251 962 874 278 296 536 572 370 397

Maintenance and repair fees 128 2,951 2,696 2,283 2,807 446 709 429 1,158 1,925

Insurance fees 34 34 161 164 39 40 44 44 50 51

Trust fees 459 659 - - - - 952 952 - -

Other expenses 12 85 327 129 315 349 443 297 103 158


NOI 19,605 16,549 82,745 88,570 19,277 21,870 26,170 25,568 28,935 21,629

Depreciation 6,818 6,831 23,153 22,892 5,267 5,270 4,947 4,971 5,758 5,768




Property Name Re-19

HF NERIMA RESIDENCE

Re-20

HF SHIROKANETAKANAWA

RESIDENCE

Re-21

HF MEIDAIMAE RESIDENCE

Re-22

HF NIHONBASHI

RESIDENCE

Re-23

HF KAMISHAKUJII

RESIDENCE

42

Property Name Re-24

HF KINSHICHO RESIDENCE

Re-25

HF GINZA RESIDENCE EAST

Re-26 HF SHIN-YOKOHAMA

RESIDENCE

Re-29

HF HAKUSAN RESIDENCE

Re-30

HF MAGOME RESIDENCE

Address Sumida Ward, Tokyo Chuo Ward, Tokyo Yokohama City, Kanagawa Bunkyo Ward, Tokyo Ota Ward, Tokyo

Lot Area (m2) 256.23 822.01 805.00 1,390.68 2,357.97


Constructed March 2005 March 2005 September 2006 January 2000 August 2001

Occupancy Rate (%) 94.20 94.84 96.16 92.14 94.81


Appraisal Price (mm yen) 990 4,120 2,390 1,630 1,130

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

Operation days 183 183 183 183 183 183 183 183 183 183


Other income 1,368 1,012 5,807 4,486 8,683 7,920 4,010 2,816 5,789 3,609


PM fees 3,571 4,226 11,311 9,098 9,419 8,240 5,418 5,095 4,663 2,554


Utilities 358 373 1,153 1,084 394 419 569 706 554 590

Maintenance and repair fees 2,404 1,513 4,160 5,095 1,254 1,232 3,863 4,136 5,007 2,294

Insurance fees 44 45 174 177 134 136 98 100 87 89

Trust fees - - 1,750 1,750 - - - - - -

Other expenses 293 78 323 431 1,106 1,232 169 981 151 516


NOI 23,302 22,987 93,003 95,296 68,522 67,680 40,911 37,436 28,105 31,103

Depreciation 5,392 5,420 27,976 28,122 20,595 20,613 12,449 12,641 11,082 11,233




43

Property Name

Re-31 HF

GAKUGEIDAIGAKU

RESIDENCE II

Re-33

HF KAMEIDO RESIDENCE

Re-34

HF TANASHI RESIDENCE

Re-35 Single-residence

Shiba-koen


Mita

Address Meguro Ward, Tokyo Koto Ward, Tokyo Nishitokyo City, Tokyo Minato Ward, Tokyo Minato Ward, Tokyo

Lot Area (m2) 847.14 246.34 1,639.65 311.02 303.10


Constructed January 2005 January 2008 March 1989 August 2003 March 2004

Occupancy Rate (%) 95.35 100.00 94.15 97.07 93.46

Acquisition Price (mm yen) 1,650 1,050 911 836 1,080

Appraisal Price (mm yen) 1,050 953 759 750 1,070

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

Operation days 183 183 183 183 183 183 183 183 183 183


Other income 1,453 2,807 5,297 40 3,695 1,944 2,157 1,581 1,532 1,312


PM fees 2,765 3,728 4,924 2,193 5,317 3,698 3,630 3,169 5,076 3,489


Utilities 295 286 474 536 482 516 598 636 522 521

Maintenance and repair fees 162 734 347 152 3,244 3,997 1,102 1,194 1,692 1,062

Insurance fees 49 50 50 51 75 77 42 43 51 51

Trust fees 1,061 1,061 - - - - 500 500 500 500

Other expenses 223 248 440 427 397 597 649 778 476 481


NOI 28,569 28,427 30,823 27,307 20,270 19,869 14,862 16,155 23,298 28,974

Depreciation 6,619 6,646 5,973 5,985 7,532 7,751 4,833 4,900 6,543 6,571




44

Property Name Re-37 Single-residence

Takanawa

Re-38 La Residence de

Shirokanedai


Ginzahigashi


Hatchobori II


Hatchobori III

Address Minato Ward, Tokyo Minato Ward, Tokyo Chuo Ward, Tokyo Chuo Ward, Tokyo Chuo Ward, Tokyo

Lot Area (m2) 432.36 344.25 368.35 427.32 203.98


Constructed February 2003 February 2004 February 1999 January 2002 January 2004

Occupancy Rate (%) 89.58 100.00 94.99 98.17 89.48

Acquisition Price (mm yen) 749 730 1,460 1,890 793

Appraisal Price (mm yen) 731 777 1,450 1,860 833

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

Operation days 183 183 183 183 183 183 183 183 183 183


Other income 492 595 1,199 283 2,915 3,216 4,504 2,119 414 1,075


PM fees 3,665 3,672 4,791 3,424 6,917 5,835 9,787 6,563 3,032 3,147


Utilities 13 7 0 3 455 484 732 793 573 477

Maintenance and repair fees 790 797 1,031 533 4,464 3,510 2,904 10,178 958 2,992

Insurance fees 36 36 100 102 63 64 89 91 49 50

Trust fees 500 500 500 500 783 783 600 600 375 375

Other expenses 109 260 - 58 42 544 56 479 375 576


NOI 17,325 15,706 17,727 19,523 34,581 38,125 46,252 40,312 21,027 17,975

Depreciation 4,567 4,594 3,198 3,204 8,171 8,250 12,620 12,777 7,509 7,631




45

Property Name Re-42 Single-residence

Ginza

Re-43 TOUR JAUNE

Komazawa-koen


Umeda TOWER


Nakanoshima


Awaza

Address Chuo Ward, Tokyo Setagaya Ward, Tokyo Osaka City, Osaka Osaka City, Osaka Osaka City, Osaka

Lot Area (m2) 175.16 2,425.44 631.79 375.95 296.88


Constructed July 2004 January 2001 August 2003 June 2001 March 2002

Occupancy Rate (%) 91.98 93.76 95.04 100.00 98.32

Acquisition Price (mm yen) 944 6,520 1,920 453 577

Appraisal Price (mm yen) 964 6,320 1,930 456 610

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

21st Fiscal

Period

22nd Fiscal

Period

Operation days 183 183 183 183 183 183 183 183 183 183


Other income 1,079 437 10,296 10,755 3,421 3,426 1,597 1,476 917 1,234


PM fees 4,547 3,120 26,293 24,937 13,089 12,779 3,780 3,244 3,348 4,379


Utilities 459 496 3,585 3,324 2,055 1,851 480 455 6 46

Maintenance and repair fees 773 563 28,133 18,3

Documents

(6 months ended November 2012) Materials for Analyst Meeting · 2013. 1. 23. · (Acquisition on December 17, 2012) 16 14 14 Forecasts for 23rd (ending May 2013) and 24th (ending