Update of Japan Rental Housing Investments Inc. July 2014 Mi-Casa Asset Management Inc.

Transcription

1 Update of Japan Rental Housing Investments Inc. July 2014 Mi-Casa Asset Management Inc.

2 Table of Contents 1 I. Japanese Rental Apartment Market and Japan Rental Housing Investments Inc. 2 II. Recent Development 10 III. Future Growth Strategy 23 Appendices 26

3 I. Japanese Rental Apartment Market and Japan Rental Housing Investments Inc. 2

4 Supply/Demand of the Japanese Rental Apartment : Stable Conditions (Relocation) (Construction) 400,000 60,000 39,084 43,371-52% 300,000 30,765 33,101 25,603 23,831 25,888 26,512 31,900 40, ,000 21,718 23,707 17,054 17,994 20, , , , , ,000 Supply/Demand Tokyo 23 words 40,234 50,386 53,183 44,319 49,713 69,958 76,786 77,267 67,842 37,391 33,098 35,435 49,655 61, Relocation (Inbounds) Net Relocation Populatioon Population 9.0million Relocation (Outbounds) New Construction Units 20, ,000-40,000-60,000 (Relocation) 100,000 80,000-40,000-60,000-80, ,000 Supply/Demand - Nagoya 15,500 (Construction) 25,000 60,000 10,812 10,180 8,413 7,454 7,819 7,430 7,261 40,000 6,857-1,851-1,240 1,045 1,608 3,465 6,766 5,897 6,178 5,140 3,527 4,337 4,163 4,069 3,159 5,247 20,000 5, , , ,000 Relocation (Inbounds) Net Relocation Populatioon -66% Population 2.3million Relocation (Outbounds) New Construction Units 15,000 5,000-5,000-15,000-25,000 (Relocation) 80,000 60, ,000-40,000-60,000-80,000 Supply/Demand - Sapporo 12,462 12,630 (Construction) 20,000 15,000 40,000 7,733 8,342 7,921 9,008 7,990 5,001 5,844 6,575 6,146 6,188 6,843 3,770 10,000 20,000 6,001 7,665 9,329 9,471 6,698 10,254 5,736 5,798 4,335 2,971 5,493 9,108 10,088 5,288 5, Relocation (Inbounds) Net Relocation Populatioon -37% Population 1.9million Relocation (Outbounds) New Construction Units 0-5,000-10,000-15,000-20,000 (Relocation) 120,000 80,000 40, ,000-80, ,000 Supply/Demand - Osaka 19,277 14,159 12,745 10,494 8,848 7,160 8,575 8,702 8,756 8,348 9,756 6,583 5, ,217 1,853 4,978 5,091 5,668 6,627 7,064 7,073 4,043 4,595 5,820 8,777 7,742 8, Relocation (Inbounds) Net Relocation Populatioon -49% Population 2.7million Relocation (Outbounds) New Construction Units (Construction) 30,000 20,000 10, ,000-20,000-30,000 (Relocation) 60,000 6,321 4,340 6,000 40,000 4,097 3,335 2,869 2,402 2,440 2,413 4,000 2,076 20,000 1,501 1, ,633 1,247 4,772 2, , , ,170 9, ,000-20,000-40,000-60,000 Supply/Demand - Sendai Relocation (Inbounds) Net Relocation Populatioon -67% Population 1.0million Relocation (Outbounds) New Construction Units (Construction) 8,000-4,000-6,000-8,000 (Relocation) 80,000 60,000 40,000 20, ,000-40,000-60,000-80,000 Supply/Demand - Fukuoka 10,925 11,397 12,851 7,986 6,970 7,900 8,620 8,994 8,348 7,267 5,618 6,106 5,518 8,078 8,097 6,628 6,315 8,200 8,315 3,356 3,975 6,573 4,895 4,985 5,389 11,129 8,186 9, Relocation (Inbounds) Net Relocation Populatioon Relocation (Outbounds) New Construction Units (Construction) 20,000 (Source) Relocation balance: Population Movement from Basic Resident Register, MIC Construction work on new rental apartments: Survey on Construction Works by the MLIT (construction of rental units and SRC/RC apartments complexes) -43% Population 1.5million 15,000 10,000 5, ,000-10,000-15,000-20,000 3

5 Portfolio Overview of Japan Rental Housing Investments Inc. 4

6 Portfolio Details 5 <Geographical Allocation> <Type> JPY billion (Portfolio Growth) 99.7 Property Acquisitions backed by Public Offering and Bank Debt Merger with PRI Kyusyu 4.6% Tohoku 4.3% Tokai 10.1% Hokkaido 5.5% Chugoku Shinetsu 1.2% 1.0% Kinki 14.1% Kanto 59.3% (including 23 wards of Tokyo 45%) Family 37.9% Studio 62.1% (3,245 units / Average 63.1 sq meters) (8,290 units / Average 30.9 sq meters) Listed on TSE 49.6 <Size> <Age> Under 5yrs 1.4% Jun 22, 2006 (stock listing) Mar 2008 (4th FP) Sep 2010 (9th FP) Mar 2014 (16th FP) As of Jul 15, 2014 Over 3bn yen 23.2% 1bn-3bn yen 42.7% Under 0.5bn yen 12.1% 0.5bn-1bn yen 22.1% 15-20yrs 8.2% 10-15yrs 15.3% Over 20yrs 15.5% 5-10yrs 59.7%

7 Portfolio Growth (based on the Acquisition Prices ) JPY million Sponsor Switched Merger with PRI Public Offering # of properties 250, ,000 Size of Acquired Properties Number of Properties Acq.+3 Acq. +52 Disp. -1 Acq. +2 Disp. -6 Acq. +2 Acq. +2 Disp. -8 Acq. +2 Disp. -1 Disp. -1 Acq. +10 Acq. +3 Disp , , ,000 # of Properties , , , , , , , Asset Size (Acquisition Price) ,000 99, , , , , , ,000 49,675 53,468 56, Jun 22, 2006 (stock listing) Sep 2006 (1st FP) Mar 2007 (2nd FP) Sep 2007 (3rd FP) Mar 2008 (4th FP) Sep 2008 (5th FP) Mar 2009 (6th FP) Sep 2009 (7th FP) Mar 2010 (8th FP) Sep 2010 (9th FP) Mar 2011 (10th FP) Sep 2011 (11th FP) Mar 2012 (12th FP) Sep 2012 (13th FP) Mar 2013 (14th FP) Sep 2013 (15th FP) Mar 2014 (16th FP) Jul

8 Key Figures Trend 7 Operating Revenue (JPY million) Net Income (JPY million) Distribution per Unit (JPY) Sep 2014 (17th) Forecast Revised forecast as of June 27, ,130 Forecast as of May 9, ,892 2,536 2,338 1,720 1,585 Mar 2014 (16th) Public Offering (Nov 8, 2013) 6,442 2,340 1,617 Sep 2013 (15th) 5,932 1,957 1,471 Mar 2013 (14th) 5,915 1,942 1,471 Sep 2012 (13th) 5,795 1,739 1,325 Mar 2012 (12th) 5,763 1,634 1,263 Sep 2011 (11th) 5,632 1,465 1,101 Mar 2011 (10th) 5,607 1,430 1,075 Sep 2010 (9th) 4,618 Merger with PRI (July 1, 2010) 0 2,000 4,000 6,000 8, ,000 2,000 3, ,000 1,500 2,000 (Note) Figures on the 9 th Fiscal Period do not include gains from negative goodwill. Performance figures on the 10 th, 12 th and 13 th Fiscal Periods are real-term figures that exclude losses from property dispositions, etc. during the relevant period.

9 How JRH differs from other Residential J-REITs 8 Gradual and consecutive increase in distributions since 10th FP (March 2011) 10th FP 16th FP 17th FP forecast Distribution per Unit JPY1,075 JPY1,617* JPY[1,720] * 1.5x of 10th FP 1. Proven track record in high occupancy ratios and property acquisitions - Highest occupancy ratios (over 97% in last two years) among peers (achieved through measures including the internally developed Daily Occupancy Forecasting System ) - Property acquisitions mainly due to various efforts by the asset manager to be in direct contact with prospective sellers and not much depend on brokerages 2. Independence of JRH and the asset management company - In terms of Property management and acquisitions, transparent transactions have always been possible and achieved 3. Stable bank financing led by the Bank of Tokyo-Mitsubishi UFJ along with 13 other Japanese banks

10 JRH Unit Price / Market Cap Unit Price JPY 85,000 80,000 75, Mar 29, 2013 JPY79,000 Nov 8 15th FP Results Released 2014 Market Cap JPY million 125,000 Jun 27 17th FP Forecast Revised July 16, 2014 JPY72,400 70,000 65,000 Jan 4, 2013 P/NAV: x ,000 60,000 55,000 Nov 16 13th FP Results Released May 15 14th FP Results Released May 9 16th FP Results Released 50,000 JRH Unit Price 75,000 45,000 40,000 35,000 30,000 Jul 1, 2010 Merger with PRI Mar 11, 2011 Great East Japan Earthquake Nov 15 11th FP Results Released May 16 12th FP Results Released TSEREIT TOPIX 50,000 25,000 JRH Market Cap 20,000 25,000 Jul 2010 Oct 2010 Jan 2011 Apr 2011 Jul 2011 Oct 2011 Jan 2012 Apr 2012 Jul 2012 Oct 2012 Jan 2013 Apr 2013 Jul 2013 Oct 2013 Jan 2014 Apr 2014 Jul 2014 * TOPIX,TSEREIT: Indexed based on JRH's investment unit price as of July 1, 2010 Source: Bloomberg 9

11 II. Recent Development 10

12 Structure of the Asset Management 11 No sponsor and related party transactions Asset Manager (Asset Management Agreement) 35 employees <Property Management> (Property management i.e. Leasing and Construction) Daily tracking using Daily Occupancy Forecasting System 20% <Acquisition> 80% 9 PM companies (mainly subs of publicly traded companies i.e. Haseko Livenet, Tokyu Livable, Shimizu Comprehensive Development, Daikyo Realdo) (Leasing) (Construction) Restoration, Renovation, large-scale repair [with brokerage] [without brokerage] Direct approach to the potential sellers (private funds, developers and etc.) based on accumulated deal information Research through residential map and registered records 30% 70% [Leasing Companies] Local agents [PM Related] PM companies and sub-contracted companies [Non-PM Related] Listed and nonlisted good-standing companies

13 Acquisition in Acquired Date October 2013 November 2013 Property Name Renaissance 21 Hakata Serenite Koshien The Residence Honmoku Yokohama Bayside Cresidence Sapporo Minami4jo Pictures Location Fukuoka city, Fukuoka Nishinomiya city, Hyogo Yokohama city, Kanagawa Sapporo city, Hokkaido Constructed March 2007 February 2010 February 2008 September 2007 (A) Acquisition Price (A) (B) (Note1) Appraisal Value as of the Acquisition (B) Appraisal Value as of March 31, 2014 (B)-(A) JPY 1,500 million (96%) JPY 2,550 million (99%) JPY 5,550 million (94%) JPY 1,140 million (97%) JPY 1,570 million JPY 2,610 million JPY 5,700 million JPY 1,180 million JPY 1,570 million (+JPY 70 million) JPY 2,580 million (+JPY 30 million) JPY 5,900 million (+JPY 350 million) JPY 1,180 million (+JPY 40 million) Properties marked bought through the public offering and bank debt. (Note1) Proposed Acquisition Price excludes acquisition expenses, fixed asset tax and city planning tax adjustments, and consumption tax and local consumption tax. (Note2) Each of the amounts is rounded off less than a unit.

14 Acquisition in Acquired Date December 2013 Property Name Lietocourt Asakusabashi Lietocourt Marunouchi Lietocourt Yotsuya Lietocourt Motoakasaka Pictures Location Taito-ku, Tokyo Nagoya city, Aichi Shinjuku-ku, Tokyo Minato-ku, Tokyo Constructed May 2005 September 2005 January 2006 April 2006 (A) Acquisition Price (A) (B) (Note1) Appraisal Value as of the Acquisition (B) Appraisal Value as of March 31, 2014 (B)-(A) JPY 1,615 million (92%) JPY 3,756 million (89%) JPY 1,716 million (90%) JPY 1,095 million (88%) JPY 1,750 million JPY 4,190 million JPY 1,890 million JPY 1,210 million JPY 1,760 million (+JPY 144 million) JPY 4,220 million (+JPY 463 million) JPY 1,900 million (+JPY 183 million) JPY 1,250 million (+JPY 154 million) Properties marked bought through the public offering and bank debt. (Note1) Proposed Acquisition Price excludes acquisition expenses, fixed asset tax and city planning tax adjustments, and consumption tax and local consumption tax. (Note2) Each of the amounts is rounded off less than a unit.

15 Acquisition in Acquired Date January 2014 March 2014 May 2014 June 2014 July 2014 Property Name Gran Casa Kamimaezu Granpark Tenjin Gran Casa Urasando Pregio Miyakojima Forest Hill SendaiAoba Pictures Location Nagoya city, Aichi Fukuoka city, Fukuoka Sapporo city, Hokkaido Osaka city, Osaka Sendai city, Miyagi Constructed June 2006 February 2005 February 2006 March 2009 March 2007 (A) Acquisition Price (A) (B) (Note1) JPY 2,050 million (94%) JPY 4,698 million (95%) JPY 1,510 million (97%) (Note2) JPY 1,610 million (96%) (Note2) JPY 2,750 million (98%) (Note2) Appraisal Value as of the Acquisition JPY 2,130 million JPY 4,830 million JPY 1,560 million (+JPY 50 million) JPY 1,680 million (+JPY 70 million) JPY 2,800 million (+JPY 50 million) (B) Appraisal Value as of March 31, 2014 (B)-(A) JPY 2,190 million (+JPY 140 million) JPY 4,960 million (+JPY 262 million) Properties marked bought through the public offering and bank debt. (Note1) Proposed Acquisition Price excludes acquisition expenses, fixed asset tax and city planning tax adjustments, and consumption tax and local consumption tax. (Note2) Acquisition price / Appraisal value as of acquisition. (Note3) Each of the amounts is rounded off less than a unit.

16 Equity Investment in the 3rd Bridge Facility (March 31, 2014) Equity investment of JPY 230 million JRH has a right of the first refusal to acquire 2 properties with a total price of JPY 5,080 million (total appraisal value: JPY 5,180 million) later than September 30, 2014 Bridge Fund (G.K. JFT): Total amount JPY 5,328 million A right of the first refusal to acquire the 2 properties with a total price of JPY 5,080 million in the exercised period between 9/30/2014 and 12/31/2015 Gransys Tenmabashi Daygran Tsurumi Non-recourse Loan JPY 3,800 million (71%) Receives dividends from the Bridge Facility J R H Total of 2 properties Right of First Refusal Exercise Price Appraisal Value (as of March 1, 2014) JPY 5,080 million JPY 5,180 million Gransys Tenmabashi Location Chuo-ku, Osaka city, Osaka # of Units 166 Completion of Construction May 2007 Right of First Refusal Exercise Price JPY 4,050 million Appraisal Value (as of March 1, 2014) JPY 4,100 million Daygran Tsurumi Location Tsurumi-ku, Osaka city, Osaka # of Units 79 Completion of Construction March 2007 Right of First Refusal Exercise Price JPY 1,030 million Appraisal Value (as of March 1, 2014) JPY 1,080 million Silent Partnership Equity Interest and Others JPY 1,528 million (29%) JRH 15% = JPY 230 million The Other 85% = JPY 1,298 million Invested 15% of silent partnership (Assets: 2 properties and others JPY5,328million) (Debt/Equity: JPY5,328million) 15

17 Disposition in 17th Fiscal Period (April 2014~) 16 Disposed the two smallest properties in the portfolio (Book value; JPY 125 mn and 148 mn respectively, both building ages; over 25 yrs) Total realized gain; JPY 121 mn, Disposed prices well exceeded appraisal values Property Name Pictures Location Constructed (A) Disposition Price (JPY thousand) ((A) / (C)) (Note1) (B) NOI (JPY thousand) (Note2) As of March 31, 2014 (C) Book Value (JPY thousand) Appraisal Value (JPY thousand) Gain on Sales (JPY thousand) Disposition Price Yield (B) / (A) Dorme Yotsuya February 1988 (26yrs) 205,000 (163.8%) 9, , ,000 69, % Nagoya, Aichi Dorme Takamine March 1989 (25yrs) 210,000 (141.2%) 13, , ,000 51, % Total 415,000 (151.5%) 22, , , , % (Note1) Disposition Price excludes sales expenses, fixed asset tax and city planning tax adjustments, and consumption tax and local consumption tax. (Note2) NOI is total of fiscal period ended September 2013 and March (Note3) Amounts are rounded down to the nearest million yen. Ratios are rounded off to one decimal place.

18 Changes in Occupancy Rates and Net Rentable Area 17 Occupancy Rates 9th 10th 11th 12th 13th 14th 15th 16th 100% 96.4% 96.2% FP average 96.5% 97.8% Occupancy Rates FP average 96.5% 97.1% FP average 97.3% 98.1% FP average 97.2% 97.7% FP average 97.3% 98.2% 448 Rentable (1,000 sq meters) % % 93.5% FP average 94.5% FP average 95.8% % FP average 92.9% Net Rentable Area October 2010 April 2011 October 2011 April 2012 October 2012 April 2013 October Started - Started Key - Started - Started - Started - More -Started Three-Week Focus Daily Construction Downtime 60 focusing Action 30 Rule Properties Occupancy Approval days on Key Focus - Shorten to 60 - Started Forecasting Committee Properties days Longterm Vacancy provision on System - Shorten to and Parking Long-term - Shorten to 120days Occupancy Units Vacancy 150days Long-term - Shorten to Units Long-term Vacancy Units 90days Longterm Vacancy (180days) Vacancy Units Units 85% Jul 2010 Oct 2010 Jan 2011 Apr 2011 Jul 2011 Oct 2011 Jan 2012 Apr 2012 Jul 2012 Oct 2012 Jan 2013 Apr 2013 Jul 2013 Oct 2013 Jan 2014 Apr Increased by 16% after 10 properties acquisitions

19 Comparison with Other Residential REITs in terms of Occupancy Rates and NOI Yield Occupancy Rates (December 2011 June 2014) 99.0% JRH A B C D E March, % March, % 98.0% JRH 97.0% 96.0% 95.0% 94.0% Dec/11 Mar/12 Jun/12 Sep/12 Dec/12 Mar/13 Jun/13 Sep/13 Dec/13 Mar/14 Jun/14 (Note) Includes data of sector companies with total asset portfolio size of more than JPY 100 billion as of July 14, 2014, except newly listed issuer in 2013 (i.e. Nippon Accommodations Fund, Nomura Real Estate Residential Fund, Inc., Advance Residence Investment Corporation, Sekisui House SI Residential Investment Corporation, Daiwa House Residential Investment Corporation, JRH (Japan Rental Housing Investments Inc.)) NOI Yield 5.9% 5.7% JRH 5.5% 5.3% 5.1% 4.9% JRH A B C D E (Note) NOI yield is calculated by deriving the NOI value from the most recent results (as of July 14, 2014), and divided by total of acquisition value. JRH is calculated based on 177 properties that owned at the and of 15th fiscal period, excluding 10 properties acquired during 16th fiscal period. All figures rounded off to the nearest decimal. 18

20 Appraisal Value (as of March 31, 2014) properties JPY177.9bn (1+2) (Unrealized gain at JPY 0.6bn - improved at JPY 4.1bn from previous period, unrealized loss at JPY 3.5bn*) 1 Existing 177 properties Total appraisal value: JPY 150.4bn 2 10 newly acquired properties Total appraisal value: JPY 27.5bn [Overview (177 properties owned at the end of 15th fiscal period; improved by JPY2,500mn)] (Good operation) CapRate compression is the main cause a. Appraisal Value Up (JPY 1mn - 170mn); 165 properties Stay; 5 properties Down; (JPY 1mn - 150mn); 7 properties b. Cap Rate Down (10-20bps); 166 properties Stay; 10 properties Up (10bps); 1 property c. Operations Operating Income; vs 15th FP +0.01% Operating Expenses; vs 15th FP +0.27% # of Properties Appraisal Value 15th FP (JPY million) Appraisal Value 16th FP (JPY million) Change NCF Cap Rate 15th FP 16th FP Change Total , , % 5.81% 5.71% -0.09% by Type Studio ,811 94, % 5.81% 5.71% -0.09% Family 59 55,046 56, % 5.81% 5.72% -0.09% by Region The 7 wards of central Tokyo 24 35,865 36, % 5.00% 4.91% -0.10% The 3 major metropolitan areas ,702 95, % 5.78% 5.69% -0.09% Other major cities 30 18,290 18, % 6.55% 6.45% -0.09% 10 Newly Acquired Properties in 16th FP 10 27,060 27, % 5.40% 5.34% -0.06% JPY million 5, ,000-10,000-15,000-20,000 Trend of Unrealized Gain/Loss 2nd FP (Mar 2007) 100% 69 9th FP (Sep 2010) 87% -19,773 15th FP (Sep 2013) 98% -3,547 16th FP (Mar 2014) 100% 617 Appraisal Value - Book Value Appraisal Value / Book Value (%) 120% 100% 80% 60% 40% 20% * Breakdown of JPY4.1bn improvement (-3,547mn to +617mn) = Appraisal value increase of existing 177 properties (+2.5bn) - Book value decrease because of depreciation after CapEx (-0.7bn) + Unrealized gain of 10 newly acquired properties (+0.8bn) 0%

21 Balance of Bank Debt 20 July 2, 2010 (After PRI Merger) July 15, 2014 (JPY million) 3 other lenders 3,901 BTMU 13,167 SMBC 11,626 (JPY+21.3 bn) BTMU 29,003 SMBC 17,463 MUTB 2,161 Musashino 2,522 Shinsei 3,050 Resona 4,423 Nouchu 5,443 JPY 75.6 bn Debt Ratio 44.3% (Note1) SMTB 6,133 Aozora 23,225 Hiroshima 500 Ashikaga 500 Kagawa 700 Hyakugo 1,000 Nouchu 1,950 (Note 1) Debt ratio = Interest-bearing debt / Total assets Total assets for July 2, 2010 ; Total assets on 9th FP + 8th FP end book value of a disposed property during 9th FP Total assets for June 20, 2014 ; Total assets on 16th FP balance sheets + Acquisition price of property acquired in May and July 2014 (Note 2) Includes data of sector companies with total asset portfolio size of more than JPY100billion as of July 14, 2014, except newly listed issuer in 2013 (i.e. Nippon Accommodations Fund, Nomura Real Estate Residential Fund, Inc., Advance Residence Investment Corporation, Sekisui House SI Residential Investment Corporation, Daiwa House Residential Investment Corporation, JRH (Japan Rental Housing Investments Inc.)) Higashi Nippon 2,270 Orix 3, % 50.0% 45.0% Fukuoka 3, % MUTB 4, % JPY 97.0 bn Debt Ratio 49.6% (Note1) Debt Ratio 51.2% Shinsei 8, % Resona 9,062 Aozora 15, % 53.4% JRH A B C D E

22 21 Finance (Total volume JPY35.2bn: New loan JPY21.1bn, Refinance JPY15.7bn, Uncollateralized all borrowings) Property Acquisition Oct 2013 Dec 2013 Jan 2014 Mar 2014 May 2014 Jul 2014 Refinance 20,000 JPY 3,350mn : two properties in Fukuoka and Koshien JPY 6,600mn : three properties in Tokyo and a property in Nagoya JPY 2,000mn : a property in Nagoya JPY 4,900mn : a property in Fukuoka JPY 1,500mn : a property in Sapporo JPY 2,750mn : a property in Sendai Oct 2013 JPY 585mn : early refinance before the due date Mar 2014 JPY 15,100mn : early refinance the due June 2014 and uncollateralized all of the pledged properties JPY 4,360mn (7yrs, Spread0.85%) (achieved the fully unsecured position for all borrowings) JPY 4,000mn (6yrs, 0.75%) JPY 5,600mn (4.8yrs, 0.60%) JPY 1,170mn (2yrs, 0.30%) Interest Rate Swap Additional arrangement of the aggregate amount of JPY 20bn => Fixed interest rate ratio at the end of the period; 61.8% (JPY 60bn) JPY million Borrowings by Repayment Date (as of July 15, 2014) 30, % Loan Interest Rate Spread 0.73% 0.80% 0.75% 0.73% 0.75% 0.70% Total Assets Appraisal LTV Based LTV (Note1) 0.60% 0.79% Ratio of Long- Term Interest- Bearing Debt (Note2) Average Loan Period 15th FP 51.4% 46.1% 81.3% 4.32 yrs 16th FP 52.1% 48.5% 99.1% 4.75 yrs Loan interest rate spread 1.0% 0.89% 10, % 0.42% 11,352 14,603 10,834 14,461 14, % 0 2,300 17th FP (Sep 2014) 18th FP (Mar 2015) 19th FP (Sep 2015) 2,870 20th FP (Mar 2016) 21st FP (Sep 2016) 4,000 22nd FP (Mar 2017) 23rd FP (Sep 2017) 6,400 24th FP (Mar 2018) 25th FP (Sep 2018) 26th FP (Mar 2019) 2,750 27th FP (Sep 2019) 6,450 6,814 28th FP (Mar 2020) 29th FP (Sep 2020) 30th FP (Mar 2021) 0.0%

23 22 Outstanding Balance of Borrowing by Lender / Changes in Share Lender The Bank of Tokyo-Mitsubishi UFJ, Ltd.(agent) Sumitomo Mitsui Banking Corporation 15th FP 16th FP 17th FP Sep 30, 2013 Balance (JPY mil) Share Oct 2013 New Borrowings Pre-maturity Refinancing Difference (JPY mil) New Borrowings with Public Offering Balance (JPY mil) Difference (JPY mil) Jan 2014 New Borrowings Balance (JPY Difference (JPY mil) mil) Balance (JPY mil) Difference (JPY mil) Mar 2014 Pre-maturity Refinancing (16th FP end) Balance (JPY mil) Share May and Jul 2014 New Borrowing Difference (JPY mil) Balance (JPY mil) 19, % 2,785 22,486 2,530 25, ,646 1,307 26, % 2,050 29,003 14, % 0 14,964 1,770 16, , , % - 17,463 Aozora Bank, Ltd 18, % 0 18, , ,143-4,000 15, % - 15,142 Resona Bank, Limited 7, % 550 7, , , , % - 9,062 Shinsei Bank, Limited 5, % 0 5,495 1,770 7, ,495 1,000 8, % - 8,495 Mitsubishi UFJ Trust and Banking Corporation 2, % 0 2,547 1,160 3, , , % - 4,464 The Bank of Fukuoka, Ltd. 1, % 0 1,337 1,160 2, , , % - 3,337 ORIX Bank Corporation 1, % 0 1, , , , % - 3,147 THE HIGASHI-NIPPON BANK, LIMITED % 600 1, , , , % - 2,270 The Norinchukin Bank 1, % 0 1, , , , % - 1,950 The Hyakugo Bank, Ltd ,000 1,000 The Kagawa Bank, Ltd The Ashikaga Bank, Ltd % % The Hiroshima Bank, Ltd Total 75, % 3,350 79,292 11,500 90,792 2,000 92, , % 4,250 97,039 Total Assets LTV (Note) 46.1% 48.5% 49.6% (Note) Total Assets LTV = Interest-bearing Debt / Total Assets x 100 Total Assets LTV for 17th FP; Balance of the borrowing as of July 1, 2014 / (Total asset on the B/S as of 16th FP end + Acquisition price of Gran Casa Urasando + Acquisition price of Forest Hill SendaiAoba) Balance in columns Total from September 30, 2013 to March 2014 include borrowings from other 2 banks.

24 III. Future Growth Strategy 23

25 24 Future Growth Strategy (Summary) New Property Acquisitions, Strengthen Operations Leads to Operating Income Increase and Expense Reduction Leads to Increase of Net Income Increase AUM by the Acquisitions of New Properties (Targeting AUM: JPY 250bn) Further Strengthen the Operations (Keeping High Occupancy and Increasing NOI) Cost Reduction (Rental Business Related Expenses, SG&A and Financial Costs) [Source of Funds] Diversify the Financing (Bank Debt and Public Offering) New property acquisitions in the Tokyo metropolitan area (over JPY 1bn per property as general) New property acquisitions in areas other than the Tokyo metropolitan area (JPY 0.5bn or less per property as general) Disposition of property located in the places other than the Tokyo metropolitan area <Application of a negative goodwill (JPY 7bn)for realized losses from the disposed properties and etc.> Participation in the Bridge Facility ( BF ) with a call option to acquire the properties in the BF Public Offering for the External Growth Keep the relationship with major domestic banks and for the external growth, establish relationships with new banks Diversify the sources of funds - Reissue Investment Corporation bonds (Reit bonds)

26 External Growth 25 Current AUM target JPY 250 billion Acquisitions of new properties Areas: Mainly in the 23 wards of Tokyo, Sapporo, Sendai, Nagoya, Osaka and Fukuoka Categories: Family type, Studio type Building Age: Up to 10 years old in principle Price: Over JPY 1 billion per property NOI Yield: Average 5~% JPY Billion 300 # of properties # of Properties Asset Size (Acquisition Price) Former JRH Former PRI Sep Mar July Sep Merger with PRI Forecast 0

27 Appendices 26

28 Profile of the Sponsor 27 JRH: Master company which receives advice from Oaktree Capital Management, L.P. Mi-Casa Asset Management Inc. (Asset manager for Japan Rental Housing Investments Inc.JRH ) shareholders: Master company, The Bank of Tokyo-Mitsubishi UFJ, Ltd., Sumitomo Mitsui Banking Corporation [Profile of Oaktree Capital Management] Established: Oaktree is indirectly controlled by Oaktree Capital Group, LLC, which is listed on the New York Stock Exchange (ticker: OAK). Business: A major alternative investment advisor and management services provider. As of the end of December 2013, it operates AUM of over USD 83.6bn (approximately JPY 8tn). It invests in distressed debt, corporate debt (including high yield bonds and senior loans), control investing, convertible securities, real estate and listed equities through opportunistic approach with thorough analysis on core value and risk management. Offices: Headquartered in Los Angeles. 16 cities worldwide, including Tokyo office which established in 1998 Number of Employees: More than 700 (as of December 31, 2013) The Master Company Group Oaktree Capital Management. (Los Angeles, USA) Advice OCM Netherlands Opportunities Coöperatief U.A. (Netherlands) 100% 100% AppleRingo Ventures 1 Limited AppleRingo Investments B.V. approx. approx. 87% 11% (Note)The Master company Group includes OCM Netherlands Opportunities Coöperatief U.A. (hereinafter the Master Company ) and the subsidiaries directly or indirectly wholly owned by the Master Company. The Master Company receives advice from Oaktree Capital Management, L.P. As of March 31, 2014 (Percentage is rounded off) 492,929 units 33% Asset Management Contract Total approx. 98% approx. 1% The Bank of Tokyo-Mitsubishi UFJ, Ltd. Sumitomo Mitsui approx. 1% Banking Corporation

29 28 Unitholders as of the 16th Fiscal Period end (as of March 31, 2014) September 30, 2013 March 31, 2014 The Master Company Group 45.3% The Master Company Group 33.4% The Ratio of Investment Units Held Financial institutions (including financial instrument trading companies) 38.2% Financial institutions (including financial instrument trading companies) 38.1% Other companies 1.6% Other foreign companies 7.5% Other companies 1.0% Individuals and others 7.9% Other foreign companies 11.1% Individuals and others 15.5% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% <Top Unitholders > Ra nki ng Unitholders (Top 10) Number of Units Held % of Total Units in Issue (Note 1) 1 AppleRingo Ventures 1 Limited (Note2) 492, % 2 Japan Trustee Services Bank, Ltd. (Trust account) 266, % 3 The Master Trust Bank of Japan (Trust account) 109, % 4 Trust & Custody Services Bank (Securities investment trust account) 76, % 5 Nomura Trust and Banking Company (Trust account) 74, % 6 JP Morgan Chase Bank , % 7 Nomura Bank (Luxembourg) S.A. 44, % 8 The Gibraltar Life Insurance Co., Ltd. (General account J-REIT) 11, % 9 CBNY DFA International Real Estate Securities Portfolio 7, % 10 Daiwa Securities Group Inc. 4, % Subtotal 1,140, % <Number of Unitholders by Investor Type> September 30, 2013 March 31, 2014 Change The Master Company Group Financial Institutions (including financial instrument trading companies) Other Domestic Companies Other Foreign Companies Individuals and Others 11,161 18,267 +7,106 Total 11,479 18,696 +7,217 (Note1) The ratio of investment units held in comparison to the total units in issue is rounded down to the second decimal point. (Note2) Investment from The Master Company Group

30 29 Forecast for the 17th Fiscal Period (April 1, September 30, 2014) Operating Revenues Operating Income Ordinary Income Net Income Reversal of Reserves for Distribution Total Distribution Amount Distribution per Unit (JPY) 16th Fiscal Period Results (1) 17th Fiscal Period Forecast (2) Revised 17th Fiscal Period Forecast Assumptions on Revised 17th Fiscal Period Forecast Difference (2) (1) 6,442 6,892 7,130 Number of properties: ,021 3,094 3,268 2,341 2,338 2,537 2,340 2,338 2,536 Rental Expense: 1,699 (Management Fees: 430) (Repair and Restoration: 322) (Property Taxes: 404) Depreciation: 1,358 Non-operating Expenses: 778 (Interest Expenses: 465) (Finance-related Costs: 304) (Amortization of issuance costs of new units: 6) (Other Expenses: 1) Interest-bearing Debt: 97,039 (Reference) Forecast for FFO*: JPY 2,747 *FFO per investment unit = FFO (Net Income + Depreciation + Amortization Net gains on Sales of Property) / Total number of investment units in issue as of the end of the fiscal period Key Factors of the Difference Rent, Common Benefit Revenue and Parking Income Increase Gain on Sales Other Increase (Rental Expense Increase 16) Repair and Restoration Cost Increase PM Fee and BM Fee Increase Advertising Cost Increase Utility Cost Increase Other Increase (Depreciation Increase 40) (SG&A Increase 7) AM Fee Increase Other Increase Other Non-operating Income Increase (Taxable Sales of Newly Acquired Properties Increase) Interest Expense Increase Finance Related Cost Increase ,385 2,337 2, ,617 1,585 1,720 Number of investment units in issue as of the end of the fiscal period : 1,475, JPY million

31 Executive Summary of the Latest (16th) Fiscal Period Acquired ten new properties of JPY25.6bn through the Public Offering* and Bank Debt *The number of unitholders increased by 63% (7,217) to 18,696 as of the end of the latest FP (March 31,2014). Public Offering JPY8,959million (Issue price at JPY62,106, 144,260 units) New bank debt of JPY16,850 million (syndicated loan led by BTMU) Credit rating upgrade R&I A- (Stable) (12/16/2013), JCR A (Stable) (2/3/2014) 2. Equity investment in the Bridge Fund (amount of JPY 230 million) Two properties in Osaka (Right of first refusal total exercise price at JPY5,080 million) 3. Achieved the highest average occupancy rate (97.3%) though NRA, an increase of 16% due to the above-mentioned acquisitions The monthly occupancy rate for March 2014 : 98.2% (Record high) The occupancy rate of the newly acquired Nagoya property improved by 8% to 94% in three months since the acquisition) (Acquired properties) Total acquisition price JPY 25,673 million Fukuoka (Hakata) 1,500 Nishinomiya (Koshien) 2,550 Yokohama (Honmoku) 5,550 Sapporo (Minami4jo) 1,140 Tokyo (Asakusabashi) 1,615 Nagoya (Marunouchi) 3,756 Tokyo (Yotsuya) 1,716 Tokyo (Motoakasaka) 1,095 Nagoya (Kamimaezu) 2,050 Fukuoka (Tenjin) 4,698 (Properties acquired through bridge fund) Acquisition price JPY 5,080 million Osaka (Tenmabashi) 4,050 Osaka (Tsurumi) 1,030 * Total appraisal value 5,180 (Average occupancy rates from October to March vs. Previous Year) 2014: 97.3% (+0.06%) 2013: 97.3% (+0.8%) 2012: 96.5% (+2.0%) 2011: 94.5% - 4. Bank debt became uncollateralized and refinanced the existing debt of JPY15.1 billion (due June 2014) in March The Portfolio turned to the unrealized gain position of JPY 0.6bn at the end of 16th FP from the unrealized loss position of JPY 3.5bn at the end of 15th FP Due to the improved appraisal value of the existing 177 properties, the unrealized gain of the above-mentioned acquisitions, and depreciation during the 16th FP

32 Financial Indicators 31 Item 15th Fiscal Period 16th Fiscal Period Reference Number of actual days of operation Return on assets (ROA) 1.2% 1.3% Ordinary income/ (Total assets at the beginning of the period + Total assets at the end of the period) / 2) x 100 (annualized) 2.4% 2.6% - Return on equity (ROE) 2.3% 2.6% Net income/ ((Net assets at the beginning of the period + Net assets at the end of the period) / 2) x 100 (annualized) 4.5% 5.2% - Capital adequacy ratio as of the end of the fiscal term 52.3% 49.9% Net assets at the end of the period/((total assets at the beginning of the period + Total assets at the end of the period) / 2) x 100 Depreciation JPY 1,106 mil JPY 1,246 mil - Rental NOI (Net Operating Income) JPY 4,441 mil JPY 4,881 mil Rental revenues - property-related expenses + depreciation FFO(Funds from Operation) per investment unit 2,462 yen 2,592 yen FFO (Net Income + Depreciation + Amortization - Gains on Sales of Property)/total number of investment units outstanding as of the end of the fiscal period FFO (Funds from Operation) multiple 14.9 times 12.0 times Unit price at the end of the fiscal term/ Annualized FFO per unit Debt service coverage ratio (DSCR) 7.8 times 9.3 times (Net income before interest, depreciation, and amortization gain or loss of the disposition of real estate + impairment loss) / interest expenses Total interest-bearing debt JPY 75,942 mil JPY 92,789 mil Interest-bearing debt at the end of the period Ratio of interest-bearing debt to total assets 46.1% 48.5% (Interest-bearing debt at the end of the period / total assets at the end of the period) x 100

33 Income Statements 32 15th Fiscal Period 16th Fiscal Period From April 1, 2013 From October 1, 2013 to September 30, 2013 to March 31, 2014 Operating revenues: Rental revenues 5,932,200 6,412,647 Dividends income - 29,691 Total operating revenues 5,932,200 6,442,338 Operating expenses: Rental expenses 2,597,160 2,777,952 Asset management fees 391, ,100 Directors remuneration 8,400 8,400 Asset custody fees 10,485 10,428 Administrative service fees 32,626 36,523 Audit fees 15,200 15,000 Provision for doubtful accounts 3, Other operating expenses 192, ,348 Total operating expenses 3,251,063 3,421,180 Operating income 2,681,137 3,021,158 Non-operating income: Interest income Miscellaneous income 8,029 85,235 Total non-operating income 8,644 85,772 Non-operating expenses: Interest expenses 483, ,447 Finance-related expenses 245, ,370 Amortization of issuance costs of new units 1,478 5,348 Other non-operating expenses 1,573 1,751 Total non-operating expenses 732, ,917 Ordinary income 1,957,621 2,341,012 Income before income taxes 1,957,621 2,341,012 Income taxes current Total income taxes Net income 1,957,016 2,340,407 Retained earnings at beginning of period Unappropriated retained earnings 1,957,748 2,340,549 15th Fiscal Period 16th Fiscal Period From April 1, 2013 From October 1, 2013 to September 30, 2013 to March 31, 2014 Breakdown of Rental Revenues and Expenses Breakdown of Rental Revenues and Expenses A. Rental revenues A. Rental revenues (Rent income) 5,130,691 (Rent income) 5,581,090 (Common service fees) 284,397 (Common service fees) 313,286 (Parking fees) 190,891 (Parking fees) 219,982 (Incidental revenues) 39,042 (Incidental revenues) 40,810 (Other rental revenues) 287,177 (Other rental revenues) 257,477 Total 5,932,200 Total 6,412,647 B. Rental expenses: B. Rental expenses: (Management fees) 386,630 (Management fees) 416,632 (Taxes and public dues) *2 360,611 (Taxes and public dues) *2 360,590 (Utilities) 115,614 (Utilities) 129,999 (Repairs) *3 282,688 (Repairs) *3 261,591 (Insurance expenses) 14,263 (Insurance expenses) 15,811 (Advertising expenses) 158,431 (Advertising expenses) 171,557 (Trust fees) 110,243 (Trust fees) 110,469 (Depreciation) 1,106,039 (Depreciation) 1,246,382 (Other rental expenses) 62,637 (Other rental expenses) 64,916 Total 2,597,160 Total 2,777,952 C. Rental income *1 3,335,040 C. Rental income *1 3,634,694 (A-B) (A-B) *1 Rental income 15th Fiscal Period 16th Fiscal Period Rental revenues JPY5,932 mil Rental revenues JPY6,412mil Rental expenses JPY2,597mil Rental expenses JPY2,777mil Rental income JPY3,335mil Rental income JPY3,634mil NOI JPY4,441mil NOI JPY4,881mil *2 Taxes and public dues Number of properties that fixed assets tax and city planning tax are charged 15th Fiscal Period 177properties 16th Fiscal Period 185properties *3 Repairs 15th Fiscal Period 16th Fiscal Period Repair cost JPY282mil Repair cost JPY261mil Capital expenditures JPY138mil Capital expenditures JPY316mil

34 33 Balance Sheets 15th Fiscal Period 16th Fiscal Period (September 30, 2013) (March 31, 2014) Assets: Current assets: Cash and bank deposits *1 7,809,235 7,339,232 Cash and bank deposits in trust *1 3,342,558 3,893,263 Rental receivables 112, ,012 Prepaid expenses 481, ,715 Consumption taxes receivable - 69,920 Other current assets 1,294 6,337 Allowance for doubtful accounts -30,733-7,772 Total current assets 11,716,619 12,006,709 Fixed assets: Property and equipment: *2 Buildings 17,658,452 22,312,407 Accumulated depreciation -1,629,532-1,945,420 Buildings, net 16,028,919 20,366,987 Structures 77, ,482 Accumulated depreciation -15,321-19,185 Structures, net 62,277 90,296 Machinery and equipment 61,454 61,968 Accumulated depreciation -15,247-17,632 Machinery and equipment, net 46,206 44,335 Tools, furniture and fixtures 51,811 67,181 Accumulated depreciation -24,558-33,230 Tools, furniture and fixtures, net 27,253 33,950 Land 15,675,310 17,428,108 Construction in progress 19,287 - Buildings in trust 67,516,318 78,975,201 Accumulated depreciation -9,382,311-10,266,010 Buildings in trust, net 58,134,006 68,709,190 Structures in trust 260, ,271 Accumulated depreciation -71,979-80,852 Structures in trust, net 188, ,419 Machinery and equipment in trust 431, ,279 Accumulated depreciation -100, ,068 Machinery and equipment in trust, net 330, ,210 Tools, furniture and fixtures in trust 229, ,870 Accumulated depreciation -103, ,213 Tools, furniture and fixtures in trust, net 126, ,657 Land in trust 60,237,420 69,388,362 Construction in progress in trust 2,205 6,210 Total property and equipment 150,878, ,796,728 Intangible assets: Right of using water facilities Leasehold for land in trust 546, ,283 Right of using water facilities in trust Trademark rights Total intangible assets 547, ,605 Investments and other assets: Investment securities 520, ,078 Guaranteed securities deposited 9,417 9,472 Lease deposits Long-term prepaid expenses 986,556 1,474,174 Derivatives 53,996 - Reserve fund for repair 191, ,007 Total investments and other assets 1,761,762 2,102,492 Total fixed assets 153,188, ,446,826 Deferred assets: Issuance costs of new units - 33,163 Total deferred assets - 33,163 Total assets 164,905, ,486,699 15th Fiscal Period 16th Fiscal Period (September 30, 2013) (March 31, 2014) Liabilities: Current liabilities: Accounts payable 210, ,295 Short-term loans *3-800,000 Current portion of long-term loans *3 14,165,011 - Other accounts payable 44,078 29,349 Accrued expenses 278, ,584 Income taxes payable Consumption tax payable 7,132 - Rents received in advance 627, ,307 Other current liabilities 15,802 21,618 Total current liabilities 15,348,140 2,228,732 Long-term liabilities: Long-term loans *3 61,777,111 91,989,083 Deferred tax liabilities 18,445 - Leasehold and security deposits received *1 338, ,494 Leasehold and security deposits received in trust *1 1,124,113 1,266,531 Derivatives liabilities - 147,675 Total long-term liabilities 63,257,708 93,799,785 Total liabilities 78,605,848 96,028,518 Net assets: Unitholders equity: Unitholders capital *4 70,557,688 79,517,099 Surplus: Capital surplus 6,682,398 6,682,398 Reserves for distributions 7,065,809 7,065,809 Retained earnings 1,957,748 2,340,549 Total surplus 15,705,956 16,088,757 Total unitholders equity 86,263,644 95,605,857 Valuation and translation adjustments Deferred gains or losses on hedges 35, ,675 Total valuation and translation adjustments 35, ,675 Total net assets 86,299,196 95,458,181 Total liabilities and net assets 164,905, ,486,699 (JPY million) *1 Cash and bank deposits 15th Fiscal Period 16th Fiscal Period Cash and bank deposits 7,809 7,339 Cash and bank deposits in trust 3,342 3,893 Total 11,151 11,232 Leasehold and security deposits received Leasehold and security deposits received in trust ,124 1,266 Balance 9,689 9,569 *2 Property and equipment 15th Fiscal Period 16th Fiscal Period Total acquisition price 156, ,961 *3 Interest bearing debt 16th FP end Balance of interest bearing debt JPY92,789mil Long-term interest bearing debt ratio 99.1% (Long-term debt / Interest bearing debt) *4 Unitholders capital (JPY million) (1) 10/7/2005 Establishment through private placement 100 (2) 12/13/2005 Third-party allotment 8,900 (3) 6/21/2006 IPO 18,748 (4) 4/26/2007 PO 18,595 (5) 5/24/2007 Third-party allotment 963 (6) 8/28/2008 Third-party allotment 12,250 (7) 10/2/2009 Third-party allotment 6,000 (8) 2010/6/30 Third-party allotment 5,000 (9) 11/26/2013 PO 8,148 (10) 12/18/2013 Third-party allotment th Fiscal Period end 79,517

35 Cash Flow Statements 34 15th Fiscal Period 16th Fiscal Period From April 1, 2013 From October 1, 2013 to September 30, 2013 to March 31, 2014 Cash flows from operating activities Income before income taxes 1,957,621 2,341,012 Depreciation 1,106,039 1,246,382 Amortization of long-term prepaid expenses 214, ,996 Amortization of issuance costs of new units 1,478 5,348 Interest income Interest expenses 483, ,447 Increase (Decrease) in allowance for doubtful accounts ,960 Decrease (Increase) in rental receivables 3,358 11,404 Decrease (Increase) in prepaid expenses -22,589 16,218 Decrease (Increase) in Consumption taxes receivable - -69,920 Increase (Decrease) in accounts payable -28,899 42,162 Increase (Decrease) in other accounts payable 20,128-14,767 Increase (Decrease) in accrued expenses 2,486 2,819 Increase (Decrease) in rents received in advance -9, ,897 Long-term prepaid expenses paid -554, ,701 Other -23,454-12,479 Sub-total 3,148,942 3,506,324 Interest received Interest paid -486, ,066 Income taxes paid Net cash provided by operating activities 2,662,074 3,051,192 15th Fiscal Period 16th Fiscal Period From April 1, 2013 From October 1, 2013 to September 30, 2013 to March 31, 2014 Cash flows from investing activities Purchase of property and equipment -88,687-5,170,997 Purchase of property and equipment in trust -92,829-21,903,533 Purchase of investment securities -520, ,000 Proceeds from withdrawal of investment securities - 322,921 Net increase (decrease) in leasehold and security deposits received 9,041 58,456 Net increase (decrease) in leasehold and security deposits received in trust -42, ,418 Other Net cash used in investing activities -735,286-26,780,781 Cash flows from financing activities: Proceeds from short-term loans - 1,385,000 Repayment of short-term loans ,000 Proceeds from long-term loans 26,203,920 31,187,000 Repayment of long-term loans -26,204,023-15,140,039 Proceeds from issuance of new units - 8,959,411 Payment of units issuance cost - -38,512 Dividends paid -1,957,326-1,957,568 Net cash provided by (used in) financing activities -1,957,429 23,810,290 Net increase (decrease) in cash and cash equivalents -30,641 80,702 Cash and cash equivalents at beginning of period 11,182,434 11,151,793 Cash and cash equivalents at end of period 11,151,793 11,232,495

36 35 NOI Yield (by Type and Region) *177 properties based Portfolio; Flat from previous period at 5.68% (10 newly acquired properties are excluded from calculation, since they are not fully contribute to the period) Other major cities recorded 6.84% (0.16% higher than previous) 6.2% 6.0% 5.8% 5.6% By Type % 6.0% 5.0% By Region % 4.0% 5.2% 5.0% Studio Family Portfolio 15th 5.50% 6.00% 5.68% 16th 5.52% 5.98% 5.68% 3.0% The seven wards of central Tokyo The three major metropolitan areas Other major cities Portfolio 15th 4.80% 5.84% 6.68% 5.68% 16th 4.73% 5.83% 6.84% 5.68% (Note1) Number of properties: 177 in the 15th fiscal period and 177 in 16th fiscal period exclude 10 newly acquired properties (numbers of properties indicate on top of the bar graphs) (Note2) NOI yield: Annual income and expenditure in the rental business / acquisition price of property excluding tax <by Size> <by Building Age> <by Region> (8) Over 3bn yen Under 500mn yen 7% 6% 5% 4% 3% 2% 1% 4.7% 0% 5.9% 1-3bn yen 5.9% (64) (43) (# of Properties) 5.9% (62) 500mn- 1bn yen (44) Over 20yrs 6% 5% 4% 3% 2% 1% 5.9% 0% Under 10yrs (96) 7% 5.4% 6.3% 15-20yrs (16) (# of Properties) (13) (# of Properties) 6.0% (21) 10-15yrs Chugoku (2) (36) (1) Kyusyu Kinki 5.7% 6.6% 5.7% 6.1% Tokai Hokkaido 8% 7% 6% 5% 4% 3% 2% 1% 0% 7.1% 5.2% 7.2% 6.4% 23wards of Tokyo (23) (60) Tohoku 6.8% (11) Shinetsu Kanto (except 23wards) (28) (3)

37 List of Properties (as of March 31, 2014) 36 Studio Property No. Property Name Area Total Number of Rentable Unit Total Rentable Floor Space (square meters) Occupancy Ratio (Mar 31, 2014) (1) Acquisition Price (2) Book Price 16th fiscal period end (3) Appraisal value 15th fiscal period (4) Appraisal value 16th fiscal period (4) - (3) (4) - (1) (4) - (2) O Satella Kita 34jo Hokkaido 181 5, % 1,133,714 1,056, , ,000 19, ,714-64,375 O Satella Nagayama Hokkaido 79 2, % 342, , , ,000 9,000 3,571 16,586 O willdo Kita 24jo Hokkaido 36 1, % 316, , , ,000 1,000-88,000-68,716 O Flat Carerra Hokkaido % 290, , , ,000 3,000-94,000-76,547 O s13w9 h+ Hokkaido 48 1, % 463, , , ,000 3, ,000-89,548 O s9w12 h+ Hokkaido 55 2, % 533, , , ,000 9, ,000-92,500 O willdo Minami hiragishi Hokkaido 36 1, % 315, , , ,000 6, ,000-88,594 O Sky Hills N15 Hokkaido 111 3, % 712, , , ,000 15,000 76, ,760 O Sky Hills Sakaemachi Hokkaido 134 5, % 832, , , ,000 19,000 30,000 63,338 O Dormy Chitose Hokkaido 110 2, % 476, , , ,000 7,000 27,000 44,496 O Sky Hills Takadai I Hokkaido 120 3, % 448, , , ,000 8,000 20,000 28,385 O Alpha Tower Sapporo Minami4jo Hokkaido 100 4, % 1,185,000 1,237,612 1,260,000 1,270,000 10,000 85,000 32,387 O Cresidence Sapporo Minami4jo Hokkaido 99 3, % 1,140,000 1,202,072 1,180,000 1,180, ,000-22,072 O willdo Nishishitadaicho Tohoku 76 2, % 512, , , ,000 5,000-39,000-6,938 O willdo Kamisugi 3chome Tohoku 46 1, % 506, , , ,000 2,000-36,000 1,650 O Grandmaison Shichifuku Tohoku 38 1, % 342, , , ,000 1,000-90,000-79,916 O Living Stage Higashi-Sendai Tohoku 52 1, % 317, , , ,000 5,000 3,800 17,031 O West Park Hasekura Tohoku 138 5, % 1,240,000 1,276,406 1,800,000 1,820,000 20, , ,593 O willdo Ishizuecho Shinnetsu 48 1, % 462, , , ,000 5,000-9,510 23,034 O willdo Sasaguchi Shinnetsu 28 1, % 266, , , ,000 8,000-10,000 4,942 O willdo Koshigaya Kanto 49 1, % 499, , , ,000 7,000-55,333-21,636 O Joyful Sayama Kanto % 216, , , ,000-1,000-41,619-36,938 O Lumiere Hachioji Kanto 94 1, % 480, , , ,000-7, , ,057 O willdo Kiyosumi 23 wards of Tokyo 200 7, % 5,024,619 4,847,569 5,090,000 5,190, , , ,430 O Turkey's Denenchofu No.2 23 wards of Tokyo % 281, , , ,000 2,000-24,523-20,055 O willdo HonChiba Kanto 30 1, % 379, , , ,000 8,000-43,857-43,381 O willdo Yokohama Minami Kanto % 233, , , ,000 2,000-1,142 11,632 O Site Pia Kanto 86 1, % 506, , , ,000 18,000-63,142-67,476 O VISTA Supreme Kanto % 563, , , ,000 8, , ,039 O Joy Oyamadai 7 central wards of Tokyo 21 1, % 624, , , ,000 10,000-84, ,497 O willdo Otsuka 23 wards of Tokyo 27 1, % 725, , , ,000 9, , ,537 O willdo Niiza Kanto 56 1, % 590, , , ,000 7,000-90,438-56,855 O Toshin Shoto Mansion 7 central wards of Tokyo 27 1, % 912, , , ,000 12, , ,050 O Harmony Kamikitazawa 7 central wards of Tokyo % 400, , , ,000 9,000-99, ,891 O willdo Minami Urawa Kanto % 396, , , ,000 14,000-26,000-11,772 O College Square KitaIkebukuro 23 wards of Tokyo 50 1, % 727, , , ,000 12,000-94,000-66,361 O College Square TobuNerima 23 wards of Tokyo 63 1, % 892, , , ,000 13, ,000-97,645 O College Square Akatsuka 23 wards of Tokyo 54 1, % 734, , , ,000 11,000-89,000-59,034 O College Square Higashikurume Kanto % 523, , , ,000 8,000-50,000-17,212 O College Square Waseda II 23 wards of Tokyo % 215, , , ,000 18,000 30,000 35,200 O College Square Myogadani 23 wards of Tokyo 68 1, % 1,060,000 1,030,765 1,050,000 1,080,000 30,000 20,000 49,234 O College Square Shinkoiwa 23 wards of Tokyo 54 1, % 724, , , ,000 1,000-94,000-65,218 O College Square Kiba 23 wards of Tokyo % 639, , , ,000 13,000 37,000 59,751 O College Square Kinshicho 23 wards of Tokyo % 490, , , ,000 10,000-8,000 11,270 O College Square Waseda 7 central wards of Tokyo % 316, , , ,000 6,000-3,000-3,055 O Lexington Square ShinjukuGyoen 7 central wards of Tokyo 48 1, % 1,010,000 1,043,974 1,040,000 1,070,000 30,000 60,000 26,025 O Prospect NihonbashiHoncho 7 central wards of Tokyo 50 1, % 808, , , ,000 21, , ,740 O Maison de Ville Takanawa Gyoranzaka 7 central wards of Tokyo 70 1, % 1,480,000 1,467,138 1,510,000 1,550,000 40,000 70,000 82,861 O Roppongi Rise House 7 central wards of Tokyo 34 1, % 912, , , ,000 13,000 18,000 42,568 O TK Flats Shibuya 7 central wards of Tokyo 194 6, % 4,770,000 4,630,218 5,060,000 5,230, , , ,781 (Note) Numbers in the columns Appraisal Value 15th fiscal period of 10 properties acquired during 16th Fiscal Period are appraisal values as of acquisition.

38 37 Studio Property No. Property Name Area Total Number of Rentable Unit Total Rentable Floor Space (square meters) Occupancy Ratio (Mar 31, 2014) (1) Acquisition Price (2) Book Price 16th fiscal period end (3) Appraisal value 15th fiscal period (4) Appraisal value 16th fiscal period (4) - (3) (4) - (1) (4) - (2) O Maison de Ville NakaMeguro 7 central wards of Tokyo 50 1, % 1,050,000 1,034,204 1,090,000 1,110,000 20,000 60,000 75,795 O Prospect KALON Minowa 23 wards of Tokyo 82 3, % 1,620,000 1,532,297 1,730,000 1,780,000 50, , ,702 O Prospect Shinonomebashi 23 wards of Tokyo 171 4, % 3,040,000 2,904,650 3,130,000 3,230, , , ,349 O Prospect Monzennakacho 23 wards of Tokyo 62 1, % 1,080,000 1,045,916 1,170,000 1,180,000 10, , ,083 O Prospect Ogikubo 23 wards of Tokyo 40 1, % 701, , , ,000 2,000 41,000 68,733 O Exceria Ikebukuro West II 23 wards of Tokyo 48 1, % 852, , , ,000 10,000 32,000 59,845 O Prospect OmoriKaigan 23 wards of Tokyo 89 2, % 1,480,000 1,450,134 1,600,000 1,640,000 40, , ,865 O Prospect MusashiShinjo Kanto 85 1, % 1,050, ,313 1,110,000 1,130,000 20,000 80, ,686 O Fragrance Kawasaki Kanto 45 1, % 548, , , ,000 10,000 33,100 60,972 O Prospect ChuoRinkan Kanto 48 1, % 524, , , ,000 6,000 36,000 69,202 O Gala Place Shinjuku Gyoen 7 central wards of Tokyo 104 2, % 2,170,000 2,200,293 2,480,000 2,520,000 40, , ,706 O Joyce Court 23 wards of Tokyo 154 6, % 3,010,000 3,068,339 3,350,000 3,400,000 50, , ,660 O Act Forme Asakusa 23 wards of Tokyo 46 2, % 1,216,000 1,241,054 1,430,000 1,460,000 30, , ,945 O Gran Casa Roppongi 7 central wards of Tokyo 17 1, % 1,480, , , ,000 20, ,808 4,414 O Gran Casa MinamiAoyama 7 central wards of Tokyo 21 1, % 3,750,000 2,343,918 1,900,000 1,750, ,000-2,000, ,918 O Storia Jingumae 7 central wards of Tokyo 49 2, % 3,160,000 3,219,437 1,860,000 1,940,000 80,000-1,220,000-1,279,437 O Spacia Shinjuku 7 central wards of Tokyo 92 3, % 2,525,000 2,582,730 2,920,000 2,940,000 20, , ,269 O Lietocourt Yotsuya 7 central wards of Tokyo 49 2, % 1,716,800 1,760,958 1,890,000 1,900,000 10, , ,041 O Lietocourt Motoakasaka 7 central wards of Tokyo 37 1, % 1,095,700 1,123,031 1,210,000 1,250,000 40, , ,968 O willdo Kanayama masaki Aichi 48 1, % 490, , , ,000 7,000 22,904 51,760 O Excelsior Sakae Aichi 48 1, % 641, , , ,000 8, , ,017 O willdo Hibino Aichi % 317, , , ,000 8,000-57,603-43,289 O willdo Chiyoda Aichi 60 1, % 633, , , ,000 15, ,000-79,584 O willdo Taiko dori Aichi 98 3, % 1,120,000 1,046, ,000 1,010,000 12, ,000-36,213 O willdo Kanayama Aichi % 370, , , ,000 12,000-34,000-14,355 O willdo Kanayama sawashita Aichi % 375, , , ,000 9,000-22, O willdo Kachigawa Aichi 64 1, % 503, , , ,000 12,000 38,000 72,075 O Stagea Kogane Aichi 67 1, % 600, , , ,000 15, ,000-77,678 O willdo Inaei Aichi 91 2, % 641, , , ,000 5,000-76,000-25,178 O willdo Higashibetsuin Aichi 66 1, % 703, , , ,000 6,000-86,000-45,932 O willdo Matsubara Aichi 54 1, % 549, , , ,000 16,000-33,000-4,157 O willdo Yokkaichi Unomori Tokai 54 2, % 529, , , ,000 14,000-11,150 25,416 O willdo Daikancho Aichi 55 1, % 655, , , ,000 19,000-58,000-28,668 O willdo Takabata Aichi 54 1, % 494, , , ,000 13,000-49,115-23,377 O Dorme Takamine Aichi % 140, , , ,000 2,000 4,900-3,714 O Dorme Yotsuya Aichi % 126, , , , ,500-10,169 O willdo Ichioka Osaka 62 1, % 722, , , ,000 8, ,761-63,145 O willdo Ebie Osaka % 350, , , ,000 3,000-41,904-24,082 O willdo ImafukuNishi Osaka 29 1, % 413, , , ,000 7,000-91,857-67,710 O Maison Flora Kinki 38 1, % 584, , , ,000-9, , ,327 O Wind Four MinamiHommachi Kinki % 307, , , ,000 3, ,142-90,257 O willdo ShinOsaka s I Osaka % 285, , , ,000 1,000-68,723-58,174 O Grand Mer HigashiYodogawa Osaka % 236, , , ,000 3,000-55,069-50,276 O willdo FukaeMinami Osaka % 184, , , ,000 3,000-44,716-42,168 O willdo Dainichi Osaka % 217, , , ,000 1,000-36,000-27,138 O willdo Tsukamoto Osaka 66 1, % 730, , , ,000 11,000-57,000-15,427 O willdo Temmabashi Osaka % 338, , , ,000 18,000-69,000-54,050 O willdo SakaisujiHommachi Osaka % 325, , , ,000 4,000-89,000-71,916 O willdo Tanimachi Osaka 54 1, % 1,040,000 1,007, , , , ,508 O willdo Namba w II Osaka 45 1, % 486, , , ,000 2, ,000-80,496

39 38 Studio Property No. Property Name Area Total Number of Rentable Unit Total Rentable Floor Space (square meters) Occupancy Ratio (Mar 31, 2014) (1) Acquisition Price (2) Book Price 16th fiscal period end (3) Appraisal value 15th fiscal period (4) Appraisal value 16th fiscal period (4) - (3) (4) - (1) (4) - (2) O willdo Namba w I Osaka 66 1, % 690, , , ,000 9, ,000-71,161 O Zekubenten Osaka 34 1, % 466, , , ,000 4,000-96,000-74,004 O willdo Tsurumi morokuchi Osaka % 180, , , , ,000-31,351 O willdo Hamasaki dori Kinki 199 5, % 2,280,000 2,169,634 1,990,000 2,010,000 20, , ,634 O willdo Minamimorimachi Osaka 31 1, % 493, , , ,000 7,000-47,000-29,636 O willdo Matsuyamachi Osaka 60 1, % 810, , , ,000 7,000-66,000-18,454 O willdo ShinOsaka Osaka 66 1, % 861, , , ,000 19,000-25,000 20,371 O willdo Sannomiya East Kinki 63 1, % 731, , , ,000 11,000-28,000 25,667 O willdo Kamishinjo wi Osaka % 366, , , ,000 1,000-63,000-51,006 O willdo Kujo Osaka 63 1, % 537, , , ,000 8,000-54,000-45,354 O Abreast ShinOsaka Osaka 92 2, % 1,391,000 1,403,993 1,320,000 1,350,000 30,000-41,000-53,993 O Abreast Sakuragawa Osaka 48 1, % 385, , , ,000 8,000 62,200 83,877 O Prospect Bishoen Osaka % 277, , , ,000 3,000 11,000 23,647 O Prospect Nakanoshima Osaka 63 1, % 734, , , ,000 20,000 62, ,949 O Prospect Toyonaka Hattori Osaka % 366, , , ,000 6,000 8,000 32,556 O Prospect Shimogamo Kinki % 281, , , ,000 4,000-4,000 7,896 O Prospect Kawaramachi Gojo Kinki 52 1, % 583, , , ,000-5,000 46,000 74,381 O Gransys Esaka Osaka 90 2, % 1,260,000 1,312,092 1,480,000 1,510,000 30, , ,907 O Serenite Koshien Kinki 197 5, % 2,550,000 2,644,061 2,610,000 2,580,000-30,000 30,000-64,061 O willdo Okayamaeki Nishiguchi Chugoku 109 3, % 1,220,000 1,129,745 1,110,000 1,120,000 10, ,000-9,745 O willdo Okayamadaiku Chugoku 98 3, % 1,040, ,249 1,010,000 1,030,000 20,000-10,000 48,750 O willdo Nakasu Kyushu 175 5, % 2,460,000 2,362,914 2,130,000 2,170,000 40, , ,914 O Renaissance 21 Hakata Kyushu 109 4, % 1,500,000 1,618,977 1,570,000 1,570, ,000-48,977 O Granpark Tenjin Kyushu , % 4,698,000 4,905,758 4,830,000 4,960, , ,000 54,241 Studio type subtotal 7, , % 112,305, ,095, ,101, ,838,000 1,737,000-4,467, ,881

40 39 Family Property No. Property Name Area Total Number of Rentable Unit Total Rentable Floor Space (square meters) Occupancy Ratio (Mar 31, 2014) (1) Acquisition Price (2) Book Price 16th fiscal period end (3) Appraisal value 15th fiscal period (4) Appraisal value 16th fiscal period (4) - (3) (4) - (1) (4) - (2) F Palais d'or Maruyama Hokkaido 64 4, % 559, , , ,000 4, ,000 96,333 F Royal Garden Shinrin Koen Tohoku 29 2, % 396, , , ,000 6, , ,112 F Green Park Komatsujima Tohoku 45 2, % 550, , , ,000 7, , ,887 F Dia Palace Izumizaki Tohoku 37 2, % 355, , , ,000 10,000-68,095-62,515 F willdo Takasago Tohoku 32 1, % 364, , , ,000 5,000-14,904 6,468 F Living Stage MinamiSendai Tohoku 27 1, % 159, , , ,000 5,000 8,500 13,847 F Takasagoseki Nibankan Tohoku 41 3, % 558, , , ,000 14, ,000 92,838 F Ark Heim Niigata Shinnetsu 115 6, % 1,060,000 1,102, , ,000 35, , ,518 F Johanna Mansion Kanto 52 4, % 556, , , ,000-13, , ,525 F Iruma Ekimae Building Kanto 68 4, % 1,517,000 1,532,195 1,470,000 1,510,000 40,000-7,000-22,195 F Iruma Ekimae Building No.II Kanto 53 3, % 687, , , ,000 17,000-64, ,609 F Sereno Omiya Kanto 102 6, % 1,554,523 1,540,975 1,590,000 1,620,000 30,000 65,476 79,024 F Suzuran-kan Kanto 20 1, % 441, , , ,000 15,000 10,809 28,050 F Bonheur Tokiwa Kanto 29 1, % 752, , , ,000 4, , ,287 F Profit Link Takenotsuka 23 wards of Tokyo 46 2, % 636, , , ,000 8,000-71,333-65,526 F Dream Heights 23 wards of Tokyo 19 1, % 358, , , ,000 3,000-2,666 2,382 F Green Hills Asukayama 23 wards of Tokyo 28 1, % 587, , , ,000 10,000-22,238-19,750 F Oji Heights 23 wards of Tokyo % 347, , , ,000 10,000 45,142 41,295 F Sakagami Royal Heights No. II 23 wards of Tokyo 28 1, % 360, , , ,000 5, F willdo Todoroki 7 central wards of Tokyo 26 2, % 1,764,809 1,769,392 1,470,000 1,480,000 10, , ,392 F Chez Moi Sakuragaoka Kanto 30 1, % 609, , , ,000 10,000-53,904-53,251 F Libest NishiChiba Kanto , % 2,152,476 2,002,938 2,220,000 2,270,000 50, , ,061 F Corinne Tsudanuma Kanto 20 1, % 352, , , ,000-7,000-43,761-56,050 F Chigasaki Daikan Plaza Kanto 34 1, % 453, , , ,000 7,000-15,571-11,043 F Winbell Chorus Hiratsuka No.13 Kanto 33 1, % 477, , , ,000 4, , ,219 F Libest Higashi Nakayama Kanto 76 6, % 1,371,314 1,238,264 1,500,000 1,510,000 10, , ,735 F MGA Kanamachi 23 wards of Tokyo 26 1, % 484, , , ,000 6,000-90,000-98,770 F Greenhills Roka 7 central wards of Tokyo 22 1, % 662, , , ,000 10,000-85, ,710 F Lofty Hirai 23 wards of Tokyo % 324, , , ,000 8,000-33,000-35,569 F Colonnade Kasuga 23 wards of Tokyo 46 4, % 3,115,277 3,211,544 2,130,000 2,180,000 50, ,277-1,031,544 F The Palms Yoyogi Uehara Cosmo Terrace 7 central wards of Tokyo 30 1, % 1,250,000 1,291,050 1,210,000 1,230,000 20,000-20,000-61,050 F Sun Terrace Yoyogi Uehara 7 central wards of Tokyo 21 1, % 1,180,000 1,229,660 1,230,000 1,230, , F Prospect NihombashiKoamicho 7 central wards of Tokyo 37 1, % 840, , , ,000 20, , ,645 F Park Terrace Ebisu 7 central wards of Tokyo 51 2, % 2,060,000 2,026,145 2,270,000 2,340,000 70, , ,854 F Prospect Dogenzaka 7 central wards of Tokyo 47 2, % 1,590,000 1,553,592 1,700,000 1,710,000 10, , ,407 F Prospect Glarsa Hiroo 7 central wards of Tokyo 112 3, % 3,560,000 3,390,016 3,590,000 3,640,000 50,000 80, ,983 F Prospect Hatsudai 7 central wards of Tokyo % 518, , , ,000 7,000 19,000 31,944 F Prospect NishiSugamo 23 wards of Tokyo 42 2, % 1,110,000 1,061,409 1,120,000 1,140,000 20,000 30,000 78,590 F Prospect Machiya 23 wards of Tokyo 21 1, % 484, , , ,000 8,000 15,000 50,656 F Prospect KiyosumiTeien 23 wards of Tokyo 77 5, % 2,630,000 2,560,350 2,750,000 2,800,000 50, , ,649 F Prospect Morishita 23 wards of Tokyo 45 2, % 1,260,000 1,196,470 1,340,000 1,370,000 30, , ,529 F Prospect OnshiKoen 23 wards of Tokyo 61 2, % 1,110,000 1,044,998 1,310,000 1,350,000 40, , ,001 F BELNOS wards of Tokyo 100 5, % 1,700,000 1,819,899 1,740,000 1,800,000 60, ,000-19,899 F SK Residence 23 wards of Tokyo 30 1, % 805, , , ,000 11,000 50,000 51,272 F Angel Heim NishiRokugo No.2 23 wards of Tokyo 40 2, % 1,012,000 1,024,383 1,070,000 1,100,000 30,000 88,000 75,616 F Deim Hashimoto Kanto 92 3, % 748, , , ,000 22,000 68,000 78,192 F Prospect Kawasaki Kanto 52 3, % 1,520,000 1,443,568 1,810,000 1,840,000 30, , ,431 F Prospect UrawaTokiwa Kanto 30 2, % 717, , , ,000 15,000 92, ,136 F Glana Ueno 23 wards of Tokyo 36 2, % 1,100,000 1,115,519 1,260,000 1,270,000 10, , ,480 F The Residence Honmoku Yokohama Bayside Kanto , % 5,550,000 5,749,150 5,700,000 5,900, , , ,849

41 40 Family Property No. Property Name Area Total Number of Rentable Unit Total Rentable Floor Space (square meters) Occupancy Ratio (Mar 31, 2014) (1) Acquisition Price (2) Book Price 16th fiscal period end (3) Appraisal value 15th fiscal period (4) Appraisal value 16th fiscal period (4) - (3) (4) - (1) (4) - (2) F Lietocourt Asakusabashi 23 wards of Tokyo 49 2, % 1,615,800 1,667,562 1,750,000 1,760,000 10, ,200 92,437 F willdo Temmacho Aichi 40 2, % 627, , , ,000 21,000 44,215 64,844 F Grace Mansion Fuji Tokai 46 2, % 492, , , ,000 11, , ,623 F Stellato City Sakurayama Aichi 26 1, % 735, , , ,000 12,000-71,000-35,098 F willdo Kurokawa Aichi 26 1, % 677, , , ,000 10, , ,754 F Gran Casa Daikancho Aichi 96 5, % 1,082,000 1,054,584 1,020,000 1,040,000 20,000-42,000-14,584 F Gran Casa Gokiso Aichi 78 5, % 932, ,374 1,020,000 1,020, ,500 57,625 F Lietocourt Marunouchi Aichi 120 9, % 3,756,800 3,873,119 4,190,000 4,220,000 30, , ,880 F Gran Casa Kamimaezu Aichi 70 5, % 2,050,000 2,157,900 2,130,000 2,190,000 60, ,000 32,099 F willdo NishiAkashi Kinki 64 4, % 635, , , ,000 16,000 17,333 75,469 F La Vita Nippombashi Osaka 69 4, % 1,860,000 1,764,702 1,580,000 1,610,000 30, , ,702 F Crown Heim NishiTanabe Osaka 22 1, % 405, , , ,000 1,000 11,000 18,476 F Prospect Katsura Kinki 29 1, % 470, , , ,000 4,000-16, Family type Subtotal Total 3, , % 69,656,040 69,241,416 68,816,000 70,117,000 1,301, , ,583 11, , % 181,961, ,337, ,917, ,955,000 3,038,000-4,006, ,702

42 Organization of Asset Management Company N a m e Mi-Casa Asset Management Inc. E s t a b l i s h e d February 25, 2005 Permits / Licenses April 15, 2005 Obtained license as real estate transaction service (Governor of Tokyo (2), License No ) July 15, 2005 October 4, 2005 Certified as discretionary transaction agent under the Building Lots and Building Transaction Business Law (Minister of Land, Infrastructure and Transport, License No. 40) Obtained certification to conduct businesses related to investment trust management (Prime Minister, License No. 53) September 30, 2007 Registered as financial instrument exchanger (Head of Kanto Local Finance Bureau (Kinsho) No. 416) H i s t o r y February 25, 2005 Established October 24, 2008 July 1, 2010 Corporate name changed to Mi-Casa Asset Management Inc. from re-plus REIT management inc. Merged with Prospect Reit Advisors Co., Ltd. P r e s i d e n t & C E O Yutaka Higashino E x e c u t i v e O f f i c e r Satoshi Nakamura (Asset Management), Atsushi Chikamochi (Finance & Accounting, IR and General Affairs) L o c a t i o n , Shinbashi, Minato-ku, Tokyo, Japan Organizational Chart B u s i n e s s Asset Management C a p i t a l JPY 400 million S h a r e h o l d e r s ( h o l d i n g s ) AppleRingo Ventures 1 Limited approx. 87% AppleRingo Investments B.V. approx. 11% Investment Committee Shareholders Meeting Board of Directors Corporate Auditors Compliance Committee The Bank of Tokyo-Mitsubishi UFJ, Ltd. approx. 1% President & CEO Sumitomo Mitsui Banking Corporation approx. 1% May 1, 2009, the Executive Officer System was introduced and new Executive Officers were appointed. August 12, 2009, there was a change in the President & CEO and a director. October 30, 2009, there was a change in directors. June 30, 2014, the total number of executives and employees is 35 (full-time). 21 employees Executive Officer Asset Management Department Executive Officer Business Management Department Compliance Office 2 employees 11 employees 41

43 Mi-Casa Management Team 42 Yutaka Higashino President & CEO (Executive Director of Japan Rental Housing Investments, Inc. since May 2012) Mr. Higashino joined Mi-Casa in August Previously, worked for Morgan Stanley Tokyo where he headed up MS Real Estate Advisors Co., Ltd as CEO, asset manager for the real estate core fund. His previous real estate background includes development, finance and investment management in Orix Real Estate Corporation, Daikyo Inc. and The Sanwa Bank, Limited (The Bank of Tokyo-Mitsubishi UFJ, Ltd.) where he developed most of his career in Tokyo, Los Angeles and New York. He has more than 30 years of banking, finance and real estate experience as head of Corporate Banking/Structured Finance divisions in New York branch, General Manager of the Structured Finance department and Higashi-Ebisu branch in Tokyo, qualified as Licensed Real Estate Broker and ARES certified Master. Satoshi Nakamura Executive Officer Asset Management Department Mr. Nakamura joined Mi-Casa in April 2009, and he is in-charge of asset management. He has more than 25 years of experience in real estate business. Before joining Mi-Casa, Mr. Nakamura worked for GE Real Estate Corporation as an asset manager, managing office and residential buildings ranging from 40 through 120 billion JPY. Mr. Nakamura was at Ken Corporation as a property manager for his client, such as MS, GS, GE. Mr. Nakamura started his career at Daido Corporation as a home developer of foreign style house. He is qualified as Licensed Real Estate Broker. Atsushi Chikamochi Executive Officer Business Management Department Keiichi Nara Compliance Officer Mr. Chikamochi joined Mi-Casa in September 2013, and he covers finance and business management. Mr. Chikamochi has about 30 years experience in banking business area. Mr. Chikamochi has experience as a Deputy General Manager of Treasury Department at The Sanwa Bank, Ltd. and The UFJ Bank, Ltd. (currently, The Bank of Tokyo-Mitsubishi UFJ, Ltd.) and Director and Executive Officer, General Manager of Finance and Accounting Division at Aeon Bank, Ltd.. Mr. Nara joined Mi-Casa in February 2008, and he is in charge of compliance. Mr. Nara started his career at the National Police Agency in April After 16 years, Mr. Nara moved to NITTAKU Real Estate Co., Ltd. as a manager of the corporate planning department. November 2007, Mr. Nara joined re-plus REIT management inc. as a compliance officer.

44 43 The purpose for this document is to provide information and is not for soliciting investment activities or recommending specific securities. In the event of purchasing investment units of Japan Rental Housing Investments Inc., please contact your securities brokerage company. Information contained in this document is not disclosed material or a management report requested based on the Financial Instruments and Exchange Act, the Investment Trusts and Investment Corporations Law, related ordinances, rules, regulations and listing regulations of the Tokyo Stock Exchange and other related rules and regulations, nor is it based on the aforementioned. The contents of this document includes statements of future forecasts. However, these are based on information available as of the current date and on certain assumptions and judgments. Unknown risks and uncertainties are inherent to such statements and it is feared that such risks, uncertainties, assumptions and other factors may impact such forecasts. Therefore, such future forecasts are not meant to guarantee the future performance, business results, financial content, etc. of JRH. Actual results may greatly differ from the future performance, business results and financial content expressly or impliedly shown by the existence of statements concerning such future forecasts. The content of this document have been rechecked, but JRH does not guarantee the accuracy, certainty, appropriateness or fairness of said content. Furthermore, please be forewarned that the content may be changed or deleted without warning. Copying, transcribing, etc. the content shown in this document without obtaining prior approval is prohibited. [Contact] Business Management Department, Mi-Casa Asset Management Inc. (Chikamochi, Kobayashi, Yasusaka) Registered Financial Instruments Firm (Registration Number: Director of the Kanto Local Finance Bureau No. 416) / Member of the Investment Trusts Association, Japan) Tel:

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