SamtyResidential Investment Corporation...A-13A-01 A-03 B-02 B-01 Portfolio map 6 Asset size 30.9...

（Securities CODE：3459）

Samty Residential Investment Corporation

April 2016

Financial Results for the 1st Fiscal Period Ending January 2016

1. Features of Samty Residential Investment Corporation P.3

2. Financial Overview P.7

3. Future Growth Strategy P.19

4. Operating Results and Distribution Information P.26

5. Appendix P.31

Table of Contents

2

1. Features of Samty Residential Investment Corporation

Investment Strategy of Samty Residential Investment (“Samty Residential”)Samty Residential will invest in high quality residential assets suitable for regional living conditions, in cities throughout Japan with the sponsor support of the Samty Group.① Characteristics of Samty Residential

Samty Residential aims to build a portfolio which pursues stability, growth potential and earnings potential by “investing primarily in residential properties of major regional cities” as well as “support from the SamtyGroup.”

Stability▶ Diversified investing in

carefully screened residential properties of Japan

Growth▶ Expanding portfolio size

through continual new investments primarily in major regional cities

Investing primarily in residential properties of major regional cities

Support from the Samty Group (Note)

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

Listed on the First Section of the Tokyo Stock Exchange on October 26, 2015

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

- Grant of exclusive negotiating rights- Stable supply of newly developed

properties

Earnings Potential▶ Realizing large earnings

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

4

Wide – ranging support of the sponsor

- Enhancing value through running a unified brand

Portfolio Development Policy ofSamty Residential Investment Corporation

A. Investment policy by asset class

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

Ｂ. Investment policy by geographical area

(Note3) “Investment ratio” is calculated based on the acquisition price.The above is the target investment mix. Actual portfolio composition may vary

② Portfolio development Policy

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

Residentialproperties(Note1)

80% or more

20% or less

Focus on the Single and Compact type residences

Operatingfacilities(Note2)

Investing primarily in major regional cities

5

Single Type Floor per unit of less than 30m2

Compact TypeFloor per unit of between 30m2 and 60m2

Regional citiesG

reater Tokyo area

50%or more

Around

70%

Around

30%

20%or less

Investment areas Investment ratio (Note3)

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

Other regional cities(Regional cities excluding major regional cities)

20% or less of investments will be in residential properties that can anticipate rental and income stability because of their commutable location to core businesses, medical facilities or national universities located in the area.

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

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

Sapporo

Sendai

Nagoya

Kyoto

Osaka

Kobe

HiroshimaFukuoka

A-10A-02A-03A-09

B-03B-04

Portfolio Overview (as of January 31, 2016)

A-12A-11

A-07A-15

A-04A-05A-06

C-09C-07

C-08

C-03

C-04C-02

C-05

C-01

C-06

A-14

A-13 A-01

A-03 B-02

B-01

Portfolio map

6

Asset size 30.9 billion yen

No. of properties 29

Occupancy rate 95.2%Average building age 7.6 yearAverage appraisalNOI yield 5.6%Average actual NOI yield (Note) 5.8%A-16

Samty Residential has acquired 29 residential properties throughout12 prefectures and has successfully composed a stable diversified portfolio concentrating in major regional cities.

Average building age

7.6 year

Investment ratio by geographical area (based on acquisition price)

Major regional cities66.6%

Other regional cities 9.0%

Greater Tokyo area24.5%

Ratio by building age (based on acquisition price)

Investment ratio by seller (based on acquisition price)

Ratio of average area per residential unit

(based on acquisition price)

(Note: Average actual NOI yield is the figure of Period Ending January 2016 (As of January 31, 2016)

Less than 5 years22.7%

5 years to less than 10 years65.9%



Owned by the sponsor,

38.7%

Through bridge funds,

20.8%

Through warehousing,

15.5%

Properties developed by the sponsor14.5%

Properties acquired through sponsor involvement74.9%

Properties acquired from sources unrelated to the sponsor10.6% Ratio of

residential properties

100%

Single type58.6%

Compact type32.9%

Family type8.4%

Ratio of regional

cities 75.5%

2. Financial Overview for the 1st Fiscal Period

Overview of the 1st Fiscal Period Ended January 2016 and Comparison to Beginning of Period Forecast

(Note) Calculated with number of investment units issued and outstanding at 163,340 units

Financial Overview

8

Major factors contributing to difference between forecast at IPO (as of July 10, 2015) and actual results (1st Fiscal Period ending January 2016)

平成27年7⽉10⽇開⽰時点

平成27年10⽉14⽇開⽰時点

▶ Increase in operating revenue: +¥84 million- Increased rental revenues due to increase in

occupancy and rent: +¥42 million- Increase due to repayments from backing away

from deposits: +¥42 million

▶ Increase in operating expenses: -¥60 million- Increase in repair and restoration expenses:

-¥25 million- Increase in leasing and other expenses:

-¥34 million▶ Decrease in depreciation: +¥2 million

▶ Increase in sales management expenses: -¥29 million

- Increase in IR related expenses: -¥24 million- Increase in compensation, etc.: -¥4 million

▶ Decrease in non-operating expenses: +¥63 million

- Decrease in interest expenses: +¥8 million- Decrease in founding, unit issuance costs, etc. :

+¥55 million

▶ Increase in corporate tax, etc.: -¥1 million(+ indicates an increase, ‐ denotes a decrease)

[Average occupancy rate during period]Forecast at IPO : 92.8%End of period : 93.8%

[Capital expenditures]Forecast at IPO: ¥33 millionEnd of period: ¥7 million

(million yen)

A. At IPO( As of July10, 2015 )

B. At Interim( As of October

14, 2015 )

C. 1st PeriodResults

Change fromForecast at

IPO

Change fromForecast at

Interim

1,363 1,390 1,458 +7.0% +4.9%

560 582 628 +12.2% +8.0%

802 807 829 +3.4% +2.7%

600 602 598 ▲0.6% ▲0.7%

▲491 ▲482 ▲428 ▲13.0% ▲11.2%

108 119 170 +56.8% +42.3%

- 0 1 - -

108 119 168 +55.3% +41.6%

Ordinary income

Corporate tax, etc.

Net income

Operating income

Non-operatingincome and expense

Management Status Forecast

Real estaterental revenue

Real estaterental expenses

Real estaterental income

(yen)

Distributions(Note)Forecast at IPO

( As of July10, 2015 )

Forecast atInterim

( As of October14, 2015 )

1st PeriodResults

Distribution per unit 666 730 1,034

Distribution in excess ofearnings per unit

778 782 776

Total distribution per unit 1,444 1,512 1,810

1 2 3 4 5 6 7 8 9 10 11 12 13

Financial Overview for the 1st Fiscal Period. Comparison between Initial Forecast and Actual Results.

Comparison between IPO and 1st Fiscal Period Results.

9

(Note) Rounded down to the nearest million yen

1st Period Forecast(as of July 10, 2015)

1st Period Results

Increased revenues with

increase in occupancy and

rents+¥42 million

(+¥257)

Depreciation of deposits due to

moving out+¥42 million

(+¥261)

Increase in repair

expenses-¥13 million

(-¥82)Increase in restoration expenses

-¥12 million(-¥74)

Increase in leasing activity

expenses-¥34 million

(-¥210)

Decrease in depreciation expenses+¥2 million

(¥14)Increase in IR related expenses

-¥24 million(-¥152)

Increase in compensati

on, etc.-¥4 million

(-¥25)

Decrease in interest

expenses+¥8 million

(+¥52)

Decrease in founding,

unit issuance costs, etc.

+¥55 million(¥336)

Corporate tax, etc.

-¥1 million(-¥9)

Total distributions ¥235 million

(¥1,444 per unit)

Operating revenue

+¥84 millionOperating expenses

-¥60 million

Sales management expenses

-¥29 million

Non-operating expenses

+¥63 million

Financial Overview

Total distributions¥295 million

(¥1,810 per unit)

Financial Overview of 1st Fiscal Period■

External Growth

Internal Growth

Financial Strategy

At IPO(as of July 1,

2015)

End of 1st Fiscal Period of fiscal

2016(as of January 31,

2016)

Number of properties 28 properties 29 propertiesAcquisition price ¥30,500 million ¥30,962 million

Acquired two sponsor developed properties (¥4,490 million(Note)) and 22 (¥23,185 million) sponsor participated properties.

In addition, acquired “S-FORT Gakuenmae” (¥462 million), which is a 5-minute direct train ride to Sapporo Station from its nearest station, Gakuenmae Station, is close to Hokkaigakuen University and has demand from both workers and students making it greatly competitive.

■ Santy Residential has improved occupancy rates and raised rental revenue improving tenantsʼ satisfaction and asset value by effective renovations and reinforcing leasing activities.

At IPO(as of June 30, 2015)

End of interim period(as of August 31, 2015)

End of 1st Period(as of January 31, 2016)

Occupancy rate(Note) 92.8％ 94.3％ 95.2％

Introduced electric (IH) cookers and free internet services, and repaired modular baths, etc.

■ While advancing investment in Major Regional Cities, Samty Residential has established a strong relationship with financial institutions in each region, constructing a solid financial standing through a balanced lender formation.

End of 1st Period

Total interest-bearing liabilities ¥17,162 million

LTV (based on total assets)(Note) 50.6%

Average remaining years to maturity 3.4 years

■ Samty Residential afforded to acquire the superior property without conducting a public offering during the 1st period.

(Note) The figures in parenthesis are based on acquisition price.

■ Strengthened competitiveness for owned properties through execution of strategic value added work

End of 1st Period

Long-term loan ratio 93.2%

Average borrowing interest rate 0.9%

As of January 29, 2016 made early repayment of ¥650 million in short-term loans payable.

10

1st Fiscal Period Regional Cities Greater Tokyo Area Total

Rent increase ratio at time of tenant replacement

44％(132 properties)



(Note) Occupancy rates at the time of IPO and at the end of interim period are the figure of the acquired assets as well as assets to be acquired excluding S-FORT Shonan Hiratsuka, S-FORT Tsurumaimarks, and before acquisition of S-FORT Gakuenmae.

(Note) Calculated as; interest-bearing debt as of January 31, 2016 (17,162 million yen / Total assets as of January 31, 2016 (33,890 million yen).

Financial Overview

Samty Residential has expanded its asset size through property acquisition and portfolio diversification

Initiatives for External Growth: Acquisition of New Properties(Acquired on October 1, 2015)

11

Property name S-FORT Gakuenmae

Location Toyohira-ku, Sapporo

Access Approx. a 3 minute walk from GakuenmaeSta., Sapporo City Subway Toho Line

Number of rentable units 48 units

Construction completed October, 2006

Acquisition price 462 million yen

Appraisal value 476 million yen

Appraised NOI yield 5.8％

Seller Aegis GK (Direct deal without paying commission)

[Property overview]This property, which has single and compact type units, is about a three-minute walk from Gakuenmae Station on the Sapporo City Subway. It takes about two minutes to reach Toyomizu Susukino Station from GakuenmaeStation using the subway and about six minutes to Sapporo station, providing excellent access to the downtown core of Sapporo. Hokkai-Gakuen University and Hokkai School of Commerce are close to this property, Hokkaido prefectural sports center and Tree planting botanical garden Toyohira Midori-no-center are within a 10-minites work. Hospital and stores selling daily essentials are nearby, providing a vibrant living environment.

With such characteristics, convenience of transportation and living is good and the property is believed to have a high level of competitiveness in the leasing market of areas with similar demand and supply situations.

External Growth

Category Term loans Lender Balance

(million yen)Fixed or

floating interest rate

Interest rate Drawdown date Repayment date

Short-term 2

Sumitomo Mitsui Banking Corporation The Bank of Fukuoka

462 Floating rate Base rate+0.4% 2015/10/1 2016/9/30

S-FORT Gakuenmae

A-16 S-FORT Gakuenmae

Changes in the Portfolio

A-13 S-RESIDENCE Kobe Isogamidori

A-08 S-RESIDENCE NambaBriller

B-04S-FORT Suzuka

A-15S-FORT Katahira

A-07S-FORT TsutsujigaokaKoen

Portfolio highlight

Acquired Properties

12

External Growth

IPO(July 10, 2015)

End of interim period (August 31, 2015)

S-FORT Gakuenmae(Acquired on

October 1, 2015)End of 1st period

(January 31, 2016)

No. of properties 28 properties 28 properties 1 property 29 propertiesTotal acquisition price 30,500 million yen 30,500 million yen 462 million yen 30,962 million yenOccupancy Rate (Note 1) 92.8％ 94.3％

（93.6%） 94.4% 95.2%

Number of rentable units 2,297 units 2,297 units 48 units 2,345 units(Note 1) The occupancy rate is the figure as of the end of August 2015 is excludes S-FORT Shonan Hiratsuka and S-FORT Tsurumai marks. The figure in the parenthesis is the occupancy rate with these two properties included. The occupancy rate at the time of IPO is the figure of the acquired assets and assets to be acquired as of the end of June 2015 and excludes the aforementioned two properties. The occupancy rate at the time of after new property acquisition is the figure as of the end of October2015.

92.7%

94.1% 94.5%

95.5%

94.9%

94.6% 94.5%

95.6%

93.8%94.1%

95.0%94.4%

92.8%

94.6%94.3%

95.3%

92.5%

92.7% 92.8%

92.1%

91.9%

93.2%

92.4%

93.5%92.8%

93.9%

94.3%94.8%

94.2%94.4%

94.1%

95.2%

91.0%

92.0%

93.0%

94.0%

95.0%

96.0%

Jun.

2015

Jul. Aug. Sep. Oct. Nov. Dec. Jan.

2016

Major regional cities (+2.9%) Other regional cities (+1.5%)

Greater Tokyo area (+1.0%) Overall (+2.4%)

Management Status (1) Changes in the Occupancy Rates by Area

Internal Growth

Occupancy rates are steadily rising. Improved 2.4 percentage point since IPO.Began managementwith 28 properties

on July 1, 2015

13

The figures in parenthesis are the increase in occupancy rates from IPO as of June 2015.

*Occupancy rates from June 2015 to August 2015 are figures at the end of each month excluding S-FORT Tsurumai marks, S-FORT Shonan Hiratsuka, which had just been constructed and S-FORT Gakuenmae, which was acquired on October 1, 2015. The figure for September 2015 includes S-FORT Tsurumai marks and S-FORT Shonan Hiratsuka, but excludes S-FORT Gakuenmae which had not been acquired.

The number of units rental revenue increased on the occasion of replacement: units

Tenant replacement:

362 units

Increase or Decrease ofRental Revenueat the Time of Tenant Replacement

14

The number of units rental revenue increased at the time of tenant replacement

for the 1st Fiscal Period

Regional Cities 132 units/299 units

Greater Tokyo Area 21 units/ 63 units

Total 153 units/ 362 units

Management Status (2) Increase or Decrease of Rental Revenue at the Time of Tenant Replacement

Internal growth

Increased rental revenue for around half of tenant replacements

Increase exceeding

5%:…

Increase of 5% or

less:

110units

30%

Decrease of 5% or

less:

75units

21%

Decrease

exceeding 5%:

26units

7% Increased

rents:

153units

42%

Unchanged:

108units

30%

Decreased

rents:

101units

28%

153

Financial Highlight ① (At the end of fiscal period ending January 2016)

Financial Strategy

Average remainingborrowing period 3.4 year

Average interestrate 0.9%

Ratio of long-term borrowings 93.2%

Total assets-basedLTV (Note1) 50.6%

Regional banks52.7％

Status of BorrowingsFinancial Status

15

List of Borrowings

(Note1) Calculated as; interest-bearing debt as of January 31, 2016(17,162 million yen / Total assets as of January 31, 2016(33,890 million yen).

(Note2) The base rate to be applied is the one-month Japanese yen TIBOR announced by the Japanese Bankers Association.

Category Termloans Lenders

Balance (million

yen)

Fixed or floating

interest rateInterestrate(Note2)

Drawdown date

Repayment date

Long-term 1-ALoan syndicate with

Sumitomo Mitsui Banking Corporation

and The Bank of Fukuoka as arrangers

5,000 Floating rate Base rate +0.6％ 2015/7/1 2018/6/30

Long-term 1-B 5,000 Floating rate Base rate +0.7％ 2015/7/1 2019/6/30

Long-term 1-C 4,000 Floating rate Base rate +0.8％ 2015/7/1 2020/6/30

Long-term 1-D 2,000 Floating rate Base rate +0.9％ 2015/7/1 2021/6/30

Short-term1-E Sumitomo Mitsui

Banking CorporationThe Bank of Fukuoka

700 Floating rate Base rate +0.4％ 2015/7/1 2016/6/30

2 462 Floating rate Base rate +0.4% 2015/10/1 2016/9/30

Total borrowings 17,162

26%

9%7%

6%23%

9%

6%6%

3%3%

2% 2% SMBC: 4.4Aozora Bank: 1.5Resona Bank: 1.2Shinsei Bank: 1.0The Bank of Fukuoka: 3.9The Kagawa Bank: 1.5The Tokyo Star Bank: 1.0Shinwa Bank: 1.0Shizuoka Bank: 0.5Kumamoto Bank: 0.5The Chiba Bank: 0.3The Hiroshima Bank: 0.3

（Billion yen）

0

1,000

2,000

3,000

4,000

5,000

6,000

2nd period

(Jul.2016)

3rd period

(Jan.2017)

4th period

(Jul.2017)

5th period

(Jan.2018)

6th period

(Jul.2018)

7th period

(Jan.2019)

8th period

(Jul.2019)

9th period

(Jan.2020)

10th period

(Jul.2020)

11th period

(Jan.2021)

12th period

(Jul.2021)

Financial Highlight ② (At the end of fiscal period ending January 2016)

Average remaining period of borrowings：3.4 year

Partially repaid by the amount of650 million yen as an early repaymenton January 29, 2016.

Diversification of Maturity ladder

16

Financial Strategy

（million yen）

No. of properties

At IPO(as of July 10, 2015)

End of interim period(as of October 14, 2015)

End of period(as of January 31, 2016)

Appraisal value Cap Rate（Note1) Appraisal

value Cap Rate（Note1) Appraisal value Cap Rate（Note1)

(million yen) （％） (million yen) （％） (million yen) （％）Properties acquired prior to andat IPOMajor regional cities 15 20,451 5.5 20,879 5.4 21,199 5.3 Other regional cities 4 2,861 6.1 2,885 5.9 2,935 5.8 Greater Tokyo area 9 7,624 5.0 7,719 4.9 7,824 4.8 Subtotal 28 30,936 5.4 31,483 5.3 31,958 5.2 Properties acquired after IPOS-FORT Gakuenmae

1 －－ 476（Note2） 5.6 476 5.6 (Major regional cities)Total 29 30,936 5.4 31,959 5.3 32,434 5.2

Appraisal Value Status (Change in Appraisal Value and Cap Rates)①

(Note 1) Cap Rate is calculated with the weighted average using the cap rate as per the direct capitalization method of the appraisal reports.(Note 2) Acquired on October 1, 2015. Appraisal value at time of acquisition on August 21, 2015.

Summary of Appraisal Value

17

■ Comparison of appraisal value at IPO and end of interim period

■ Change in Cap Rates

Changes in the Appraisal Value and Cap Rates after IPO

No. of properties

Compared to IPO

Compared to end of interim

period

Change in appraisal value

Upward 28 22

Unchanged 0 7

Downward 0 0

No. of properties

Compared to IPO

Compared to end of interim

period

Change inCap Rate

Improved 0 0Unchanged 0 13Degraded(Upward of appraisal value)

28 16

18

(Note3) Interim period includes S-FORT Gakuenmae acquired on October 1, 2015.

20,451 21,355 21,675

2,861 2,885 2,935

7,624 7,719 7,824

30,936 31,959 32,434

10,000

20,000

30,000

40,000

Major regional cities Other regional citiesGreater Tokyo area

（million yen）

At IPO Interim period

End of period

5.5%5.4% 5.3%

6.1%5.9% 5.8%

5.0%4.9% 4.8%

4.5%

5.0%

5.5%

6.0%

6.5%

Major regional cities Other regional cities

Greater Tokyo area

At IPO Interim period

End of period

Appraisal Value Status (Change in Appraisal Value and Cap Rates)②

(Note3)

(Note3)

3. Future Growth Strategy

30.5 30.9

100

0

20

40

60

80

100

120

IPO 1st period

(Jan.2016)

Management Target

(3 years later)

Growth Strategies

+ 0.4 billion yen

Management Target（Based on acquisition price）

20

External growth strategy

(1) Expand the asset size and enhance the quality of the portfolio through continuous acquisitions of the “S-RESIDENCE” properties developed by the sponsor(2) Acquire properties through sponsor support (3) Acquire properties by taking advantage of the proprietary channels of the asset management company(4) Implement the differentiated portfolio development policy

Internal growth strategy

(1) Enhance the asset value and rate of return through reviewing existing facilities and other measures(2) Reduce operating costs(3) Stabilize earnings by utilizing sublease agreements

Financial strategy

(1) Lengthen borrowing periods and reduce cost of debt(2) Expand the bank formation(3) Acquire credit ratings in the future

(Asset size: billion yen)

Target of managed assets: achieving the asset size of 100 billion yen within three years

Properties owned by third party whichsponsor has concluded sales contract

21

Name (tentative) Location Number of units Area

① S-RESIDENCE Shin Osaka Ekimae Higashi Yodogawa-ku, Osaka 167 Major regional cities

*Completed in September 2015② S-RESIDENCE Esaka Suita-shi, Osaka 138 Other regional cities

*Completed in September 2015③ S-RESIDENCE Yodoyabashi Chuo-ku, Osaka 84 Major regional cities

*Completed in January 2016④ S-RESIDENCE Kobe Motomachi Chuo-ku, Kobe 81 Major regional cities

*To be completed in February 2016⑤ S-RESIDENCE MidoribashiSF Chuo-ku, Osaka 148 Major regional cities⑥ S-RESIDENCE Fukaebashi East Higashinari-ku, Osaka 144 Major regional cities⑦ S-RESIDENCE Shin Osaka West Yodogawa-ku, Osaka 224 Major regional cities

⑧ S-RESIDENCE Miyakojima Miyakojima-ku, Osaka 120 Major regional cities⑨ S-RESIDENCE Esaka Tarumicho Suita-shi, Osaka 75 Other regional cities

⑩ S-RESIDENCE Nagoya Chiyoda Naka-ku, Nagoya 109 Major regional cities⑪ S-RESIDENCE Minami Horie Nishi-ku, Osaka 154 Major regional cities

⑫ S-RESIDENCE Yokosuka Chuo Yokosuka-shi, Kanagawa 24 Greater Tokyo area

*To be completed in February 2016⑬ S-RESIDENCE Higashi Ikebukuro Toshima-ku, Tokyo 40 Greater Tokyo area

*To be completed in February 2016⑭ S-RESIDENCE Ryogoku Sumida-ku, Tokyo 36 Greater Tokyo area

*To be completed in February 2016⑮ S-RESIDENCE Sakura Josui Suginami-ku, Tokyo 43 Greater Tokyo area

⑯ S-RESIDENCE Yokohama Kanagawa-ku,Yokohama 36 Greater Tokyo area

⑰ S-RESIDENCE Kawasaki Kawasaki-ku, Kawasaki 43 Greater Tokyo area

⑱ S-RESIDENCE Shinjuku 5-Chome Shinjuku-ku, Tokyo 65 Greater Tokyo area

External growth

Pipeline (Properties of which exclusive negotiating rights were granted and properties under negotiation for acquisition) Properties being developed by the sponsor, of with exclusive

negotiating rights were granted

Prefectures where the 29 owned properties are locatedPrefectures where investments will be made for the first time

Area LocationNumber

of buildings

Number of units (total)

Major regional cities Nagoya-shi 3 88

Other regional cities Tochigi 1 52

Location Number of units Area

① Nagata-ku, Kobe 168 Major regional cities② Aoba-ku, Sendai 91 Major regional cities③ Wakabayashi-ku, Sendai 59 Major regional cities④ Nakagyo-ku, Kyoto 47 Major regional cities⑤ Higashiyama-ku, Kyoto 18 Major regional cities⑥ Oita-shi, Oita 92 Other regional cities⑦ Saga-shi, Saga 127 Other regional cities⑧ Saga-shi, Saga 46 Other regional cities⑨ Kumamoto-shi, Kumamoto 91 Other regional cities⑩ Tyuou-ku, Sagamihara 53 Greater Tokyo area

Properties owned by the sponsor,being considered for acquisition

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

Leasing Activities / Examples at Acquired Assets(1) Renovation Examples

■ 3 –unit prefabricated bath

Since long-term vacancies stood out at acquisition, the bathroom was renovated into two separate rooms with high functionality. By providing a more comfortable living space, occupancy rates improved and rental revenue increased.

Aiming for asset value improvement through continued planning and execution of renovationsC-02 S-FORT NihonbashiHakozaki

B-01 S-FORT Shizuoka Hondori

■ Electric cooker repairs

Occupancy RateAt property acquisition

(as of April 30, 2015)

After renovations(as of January 31,

2016)85.7% 92.9%

The occupancy rate was low at acquisition, but by replacing the deteriorated electric cookers with the latest IH stoves and by advertising such to tenants,the occupancy rate improved significantly.

before After A-14 S-FORT Kyoto Nishioji■ Introduced free internet serviceThe free internet service is one of the popular features of rental residences and is expected to lead to improved occupancy rates in the future. After its introduction, 3 new contracts were signed.

Down timeBefore

introductionAfter

introduction137 days 51 days

Occupancy RateAt property acquisition

(as of July 31, 2015)

After renovations(as of January 31,

2016)

84.6% 92.3%

Rent unit price(including common expenses)

Renovated units Average rent increase after renovation

4 units ¥8,000

before After

22

Internal Growth

Internal Growth

■ Rent revision status(July 2015 through January 2016)

A-13 S-RESIDENCE Kobe Isogamidori

■ Occupancy rate change(July 2015 through January 2016)

Rent increase or decrease ratio

at time of tenant replacement for July 2015

through January 2016

96.7%

Unchanged1 unit

23

A-08 S-RESIDENCE Namba Briller

Unchanged rent ratio

at time of tenant replacement for

July 2015 through January 2016

100%

■ Rent revision status(July 2015 through January 2016)

The 2 properties (S-RESIDENCE Namba Briller, S-RESIDENCE Kobe Isogamidori) among the“S-RESIDENCE” series developed by sponsors utilize the design and security-conscious product

marketability in promotional materials and maintain high occupancy rates by taking in many female and corporate demands.

While S-RESIDENCE Namba Briller has many competing properties in the surrounding area, it has not had to decrease rents at the time of tenant replacements and has maintained a high occupancy rate of around 98%.

At S-RESIDENCE Kobe Isogamidori, leasing activities aiming for an increase in rent unit prices were executed and rents were revised upwards for most units at the time of tenant replacement.

Leasing Activities / Examples at Acquired Assets(2) Leasing Considering the Property Characteristics

Upward revision29 units

99.4%

98.3% 98.4%97.9%

98.9% 99.4% 99.1%

95.0%

96.0%

97.0%

98.0%

99.0%

100.0%

Jul.2015 Aug. Sep. Oct. Nov. Dec. Jan.2016

Occupancy rate (%)

■ Occupancy rate change(July 2015 through January 2016)

Unchanged21 units

96.8%

98.1%

100.0%

98.1% 98.0%

97.4%

100.0%

95.0%

96.0%

97.0%

98.0%

99.0%

100.0%


Occupancy rate (%)

A-09 S-FORT Tsurumai marksAchieved 100% occupancy rate through strategic leasing activities focusing on corporate demands, by cooperating with PM companies at the time of acquisition, aiming for improved occupancy rates anticipating personnel changes in the fall.Corporate contracts account for more than half (23 of 42 units contracted), the business types are diverse, making stable occupancy rates possible.

A-04 S-FORT Chikushi DoriBefore Samty Residential acquired the property the occupancy rate was in the lower 80% range and at the date of acquisition by Samty Residential (as of May 31 2015) it was 85.6%. However, at the time of the acquisition the PM company was changed and relations with the leasing agent were strengthened and with strategic leasing activities such as analysis of the cause of vacant units and value add work (color contrast), the occupancy rate improved to 97.8% as of January 31, 2016.

24

Internal Growth

Leasing Activities / Examples at Acquired Assets(3) Successful Examples of Flexible and Strategic Leasing

83.3%85.7%

97.6% 97.6% 97.6%

100% 100%

80.0%

85.0%

90.0%

95.0%

100.0%


Occupancy rate (%)

85.6%87.8% 87.8% 86.7%

90.1%92.3% 91.1%

93.3%

97.8%

80.0%

85.0%

90.0%

95.0%

100.0%

H27年5⽉ 6⽉ Jul.2015 Aug. Sep. Oct. Nov. Dec. Jan.2016

Occupancy rate (%)

Summary of Financial Strategy Basic Policy

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

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

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

Diversify the source of financing across Japan as is in case of geographical diversification of

assets

Extend remaining borrowing period with consideration given to costs

Future Action Plans

Develop new banking relation ship including regional banks

Acquire credit ratings in the future

Diversify repayment dates

25

Financial strategy

4. Operating Results and Distribution Information

Management Forecast of the 2nd Fiscal Period

■ Managed assets2９ properties(Number of acquired properties as of thedate of this document)

■ Period-average month-end occupancy rate94.6%

■ Interest-bearing liabilities17,162 million yen

■ No. of investment units issued and outstanding163,340 units

■ Capital expenditures (planned amount)28 million yen

Assumptions

■ Calculation period ：From February 1, 2016 to July 31, 2016

27

(million yen) 2nd fiscal per iod

1,085

16771

268507

577

7678

423

-93

330

1

329

(yen)

574

Real estate rental revenue

Miscellaneous rental expensesTaxes and duesDepreciation

Ordinary income

Real estate rental expenses

Real estate rental income

Asset managemant feesOther expenses

Operating income

Non-operating income and expense

Distribution in excess of earnings per unit

Total distribution per unit 2,591

Corporate tax, etc.

Net income

Distribution per unit 2,017

Distribution Policy Due to of the nature of the portfolio, the ratio of depreciation to property acquisition price tends to be

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

In regards to the 2nd Fiscal Period, Samty Residential determined that it is appropriate to conduct distributions in excess of earnings in consideration of the market environment and financial conditions.

Amount of distribution amount are determined based on the target payout ratio aiming for 70%.

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

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

Investment that should help enhance the portfolioʼs profitability

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

Return to unitholders including distribution in excess of earnings

28

Capital expenditures to maintain the building functions, etc.

Securement of working capital on hand, etc.

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

Cash Management Strategy

Distribution Policy

Depreciation

Expensed related to rent business,

sales, general and

administrative expenses, non-

operating expenses, etc.

Rental revenue

Distribution (profits)

Distribution in excess of earnings

Net income before income

taxes

Distribute payout ratio aiming for 70%

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

Samty Residential determines the distribution amount of each period based on the payout ratio, as distribution of operation outcome.However, when deciding distribution in excess of earnings, the following requirements are to be fulfilled, taking into account Samty Residentialʼs financial conditions, amount of future capital expenditures, etc., in order to avoid undermining the unitholder value.

29

Distributions in Excess of Earnings

■ Conceptual diagram of distribution in excess of earnings(1) Determine of distribution

With a view to enhancing unitholder value over the medium to long term, distributions in excess of earnings are authorized when Samty Residentialʼs portfolio meets the following conditions.

Note: Excluding amount equivalent to incidental expenses upon acquisition

Total appraisal

valueTotal adjusted

book value (Note)

CAPEX for the following fiscal

period

(2) Determination of amountAmount of distributions are determined for each fiscal period based on future capital expenditures, capital demand, etc.

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

0

100

200

300

400

500

600

700

FFO CAPEX AFFO 分配⾦

総額

活⽤可能

な現⾦

Cash distribution forecast：Outlook of Funds From Operations and Cash Flow

30

Payout ratio70.8％

Depreciation268

Net income329

56928

Distributions (profits)

329

Distributions in excess of earnings

93

147

（million yen）

*FFO=Net income + Depreciation – Gain or loss on sale of real estateAFFO= FFO－CAPEX

Outlook of Cash Flow■ 2nd fiscal period

Total cash distribution

Cash available for use

5. Appendix

0

20

40

60

80

100

120

140

160

180

200

平成12 平成14 平成16 平成18 平成20 平成22 平成24 平成26

東京23区主要地⽅都市合計

2000

Tokyo 23 Wards Major Regional Cities

2002 2004 2006 2008 2010 2012 2016

Characteristics of Regional Residence Investments Household growth rate (2000 = 100)

Net Migration

Number of New Housing Starts(Year 2000＝100）

Status of Investment into Residences by Listed J-REITs

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

Source: Prepared by Samty Asset Management based on ARES J-REIT Property Database(Note) Total of each listed J-REITʼs owned residences (1,455 buildings) at end of the most recent fiscal period as of February 23, 2016. Further, for Nomura Real Estate Master Fund. Inc., which merged on October 1, 2015, the owned residences at the end of the most recent fiscal period for the pre-merger Nomura Real Estate Residential Fund, Inc.

（%）

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

32

100

105

110

115

120

125

130

2000 2002 2004 2006 2008 2010 2012 2014

（％）

Fukuoka City

Sapporo City

Tokyo 23 Wards

Sendai City

Major Regional Cities

Nagoya City

Osaka City

Kobe City

Hiroshima City

Kyoto City

Growth rate from 2000 to

2014

+25.9%

+22.5%

+19.8%

+18.2%

+17.8%

+16.7%

+16.1%

+15.6%

+14.9%

+12.5%

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

80,000

200020012002200320042005200620072008200920102011201220132014

Tokyo 23 Wards Major Regional Cities（ people ）

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

Tokyo:90762%

Osaka:957%

Aichi Prefecture:

896%

Others:36425%

(number of buildings)

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

2004

(results)

2005

(results)

2006

(results)

2007

(results)

2008

(results)

2009

(results)

2010

(results)

2011

(results)

2012

(results)

2013

(results)

2014

(results)

2015

(planned)

2016

(planned)

2017

(planned)

（million yen）

History

33

Overview of the Samty Group

Dec. 2011

Feb. 2011

Jul. 2007

Mar. 2005

Sep. 2002

Dec. 1982

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

Established Tokyo Branch Office

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

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

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

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

Mar. 2016

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

2015

Established Sapporo Branch OfficeMay 2015

Nov. 2012

Jun. 2012

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

Established Fukuoka Branch Office

Changes in the Operating Results of the Samty Group (Consolidated Basis)

0

1,500

3,000

4,500

6,000

7,500

9,000

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

Nov.

2008

Nov.

2009

Nov.

2010

Nov.

2011

Nov.

2012

Nov.

2013

Nov.

2014

Nov.

2015

Net sales : Total (left axis) Net sales : Other Businesses (left axis)Net sales : Property Leasing (left axis) Net salse : Real Estate Business (left axis)Operating income (right axis)(million yen) (million yen)

(million yen)

Composition of Lease Assets of the Samty Group

Distribution of Lease Assets of the Samty Group

The Samty Group owns condominiums, office buildings, retail properties, hotels and parking lots either for the entire buildings or in sectional ownership, and leases them to individuals and corporate tenants.

The Group continuously acquires income-generating real estate properties in major regional cities throughout Japan, centering on the Kansai area where the Groupʼs headquarters exist.

The in-house design and leasing divisions have qualified architects of the first class, who study and implement lease-up plans and measures to enhance asset value. The Group also conducts subleasing and consigned operations of building management, etc. As such, the group has accumulated a wide range of know-how and experiences.

Book value : as of November 30, 2015

Office buildings10,653 15%

Retail facilities/ hotels, etc.

39%Condominiums33,578 46%

Leased area : as of November 30, 2015

Property Leasing

The Samty Group sells real estate properties it develops on its own and existing income-generating real estate properties, etc. that it acquires from third parties to external investors and other buyers. A representative product of the real estate properties it develops is the S-RESIDENCE series rental condominiums, prefixed with its own brand, for which the Group operates consistently from acquiring land for the project to planning and developing the product and constructing it. For the income-generating real estate properties it has developed or acquired, the Samty Group not only invites tenants but also works to enhance the grades of the properties through facility renovations by utilizing its know-how, in an endeavor to secure earnings during the period it owns them and maximize their sale value. Since 2004, the Group has sold 28 buildings (totaling 45.5 billion yen on a sale price basis), of which 6 buildings (totaling 13.8 billion yen on a sale price basis) are owned by listed J-REITs as of the date of this document.

Real Estate Business

Development Results and Development Plan of the S-RESIDENCE Series

Source: Presentation on Operating Results for Fiscal Year Ending November 2015 by Samty Co., Ltd.(Note 1) Development results represent a compilation of the sale amounts of rental condominiums developed for listed J-REITs and investment funds.(Note 2) Development plans represent a compilation of the assumed sale amounts of properties for which the Samty Group has concluded agreements regarding acquisition of the land for the projects. The figures are as of the end of November 2015, and may be changed in accordance with an increase or a decrease in the number of future agreements on acquiring land and changes in the assumed sale amounts.

Established Nagoya Branch Office

Solution Business

Source: Securities Reports (from the fiscal year ended November 2008 to the fiscal year ended November 2015) of Samty Co., Ltd.(Note) The Net sales figure as of November 2008 shows the total of all the sales due to the change in segmentation method.

Hokkaido, 12,156㎡, (3%)

Tohoku,

4,017㎡,

(1%)Kanto,

32,189㎡,

(8%)

Chubu,

17,938㎡,

(5%)KinKi,

271,305㎡,

(69%)

Shikoku,

699㎡,

(0%)

Kyusyu,

52,780㎡,

(14%)

Condominium Brand “S-RESIDENCE” in Samty Residentialʼs Portfolio

S-RESIDENCE Kobe Isogamidori

S-RESIDENCE Brand

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

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

34

Well-poised entrance hallthat serves as a gateway

from ordinary to private space

Hotel-like indoor hallwayprotecting privacy

Convenient large Closets around the entrance hall

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

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

Hands-free intercom with a monitor

Safe flat flooring by eliminating difference inlevel on the floor to preventtrips

Image illustration

Flat-designed floors

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

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

Toilet with variety of functions such as self-cleaning and heaterCushioned flooring with excellent sound-absorption

Portfolio List ① Major Regional CitiesList of acquired properties (Number of acquired properties as of January 31, 2016)

35

A-01S-FORTShin Osaka ravir

Yodogawa-ku,Osaka

Single / Compact 635 646 5.3% 49 87.8%

A-02 S-FORT SannoNakagawa-ku,

NagoyaSingle / Compact 2,890 3,060 6.1% 230 97.5%

A-03 S-FORT FujigaokaMeitou-ku,

NagoyaSingle 750 784 6.0% 80 93.8%

A-04S-FORTChikushi Dori

Hakata-ku,Fukuoka

Compact 1,170 1,190 5.6% 90 97.8%

A-05S-FORT FukuokaKencho Mae

Hakata-ku,Fukuoka

Single 979 1,060 5.9% 104 99.0%

A-06 S-FORT TakamiyaMinami-ku,

FukuokaSingle / Commercial 794 807 5.6% 82 95.3%

A-07S-FORTTsutsujigaoka Koen

Miyagino-ku,Sendai

Single / Compact / Family 1,340 1,370 5.7% 94 92.4%

A-08S-RESIDENCENamba Briller

Naniwa-ku,Osaka

Single 2,020 2,100 5.3% 154 100.0%

A-09S-FORTTsurumai marks

Naka-ku, Naoya Family 1,020 1,160 5.8% 42 100.0%

A-10S-FORTRokuban-cho

Atsuta-ku,Nagoya

Single / Commercial 722 746 5.4% 56 96.6%

A-11S-FORTNakajima Koen

Chuo-ku,Sapporo

Compact / Family 1,590 1,620 5.7% 75 90.3%

A-12S-FORTHokudai Mae

Kita-ku,Sapporo

Compact / Commercial 690 732 5.8% 59 94.7%

A-13S-RESIDENCEKobe Isogamidori

Chuo-ku, Kobe Single / Compact 2,470 2,600 5.3% 166 99.1%

A-14S-FORTKyoto Nishioji

Shimogyo-ku,Kyoto

Single / Commercial 745 804 6.0% 71 90.2%

A-15 S-FORT KatahiraAoba-ku,Sendai

Single / Compact 2,330 2,520 6.0% 191 95.9%

A-16 S-FORT GakuenmaeToyohira-ku,

SapporoSingle / Compact 462 476 5.9% 48 87.2%

appraisal NOIyield

Property name Location typeAcquisition Price(millions of yen)

Appraisal Valueat End of Period(millions of yen)

Number ofrentable

units

OccupancyRate

Major regional cities

PropertyNo.

Portfolio List ② Other Regional Cities / Greater Tokyo Area

36

List of acquired properties (Number of acquired properties as of January 31, 2016)

B-01S-FORT ShizuokaHondori

Aoi-ku,Shizuoka

Compact 297 305 6.1% 28 92.9%

B-02 S-FORT SuminodoDaitou-shi,

OsakaSingle / Compact 1,420 1,500 6.0% 126 95.9%

B-03S-FORTYokkaichi otomachi

Yokkaichi-shi,Mie

Compact 480 511 6.7% 54 100.0%

B-04 S-FORT Suzuka Suzuka-shi, Mie Compact 580 619 7.0% 69 92.0%

C-01 S-FORT Maita KoenMinami-ku,Yokohama

Single / Compact 987 1,020 5.3% 70 91.7%

C-02S-FORT NihonbashiHakozaki

Chuo-ku, Tokyo Single / Compact 925 946 4.6% 36 92.3%

C-03S-FORTItabashi Shimura

Itabashi-ku,Tokyo

Compact 645 660 4.8% 32 90.9%

C-04 S-FORT Shiomi Koto-ku, Tokyo Single 866 952 5.1% 52 98.1%

C-05 S-FORT NoboritoTama-ku,Kawasaki

Single 666 675 4.8% 40 95.0%

C-06S-FORTShonan Hiratsuka

Hiratsuka-shi,Kanagawa

Single 818 841 5.4% 66 87.6%

C-07S-FORTNishifunabashi

Funabashi-shi,Chiba

Single / Compact 732 744 5.3% 47 100.0%

C-08 S-FORT MaihamaUrayasu-shi,

ChibaSingle 1,130 1,150 5.3% 83 98.8%

C-09 S-FORT IchikawaIchikawa-shi,

ChibaSingle / Commercial 809 836 5.2% 51 87.3%

29 properties 30,962 32,434 5.6% 2,345 95.2%Total

appraisal NOIyield

Greater Tokyo area

typeAcquisition Price(millions of yen)

Appraisal Valueat End of Period(millions of yen)

Number ofrentable

units

OccupancyRate

Other regional cities

PropertyNo.

Property name Location

37

A-01 A-02 A-03 A-04 A-05 A-06 A-07 A-08

S-FORT Shin Osaka ravir

S-FORT SannoS-FORT

FujigaokaS-FORT

Chikushi Dori

S-FORT Fukuoka

Kencho Mae

S-FORT Takamiya

S-FORT Tsutsujigaoka

Koen

S-RESIDENCE Namba Briller

Apr. 15, 2015 Apr. 15, 2015 Apr. 15, 2015 May 1, 2015 Apr. 15, 2015 May 1, 2015 Apr. 15, 2015 Jul. 1, 2015

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

Composition ratio 2.1% 9.3% 2.4% 3.8% 3.2% 2.6% 4.3% 6.5%

Balance sheet amount (million yen) 661 3,036 787 1,223 1,032 833 1,419 2,122

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

Leased area (㎡) 1,133.58 7,938.27 1,837.50 3,623.36 2,542.04 2,005.77 3,334.25 3,631.60

Occupancy rate (as of Jan. 31, 2016)

87.8% 97.5% 93.8% 97.8% 99.0% 95.3% 92.4% 100.0%

Number of operating days 292days 292days 292days 276days 292days 276days 292days 215days

① Total real estate rental income (thousand yen)

31,246 204,723 46,219 64,797 54,744 40,878 78,618 79,174

Real estate rental revenues 29,513 163,508 42,170 53,676 52,113 38,651 70,062 74,242

Other lease business revenues 1,732 41,214 4,048 11,120 2,630 2,227 8,555 4,931

② Real estate rental expenses (thousand yen)

8,053 27,908 8,542 17,763 7,380 8,532 14,262 11,964

Management service fee 1,815 8,770 2,070 2,397 2,576 2,081 3,174 3,030

Taxes and dues - - - - - - - -

Utilities expenses 501 1,789 875 958 704 720 2,454 801

Repair Cost 2,218 5,928 2,319 6,715 1,462 2,772 3,830 877

Insurance expenses 57 309 79 146 107 94 143 122

Trust fees 480 480 480 453 480 453 480 472

Other 2,978 10,629 2,716 7,091 2,048 2,409 4,178 6,660

③ NOI (= ①－②) (thousand yen) 23,193 176,814 37,676 47,034 47,363 32,346 64,355 67,209

④ Depreciation (thousand yen) 8,865 42,044 16,137 16,021 14,369 13,072 19,392 15,997

⑤ Real estate rental income (= ③－④) (thousand yen)

14,327 134,770 21,539 31,013 32,994 19,274 44,962 51,212

⑥ Capital Expenditures (thousand yen)

- - - - - - - -

⑦ NCF (= ③－⑥) (thousand yen) 23,193 176,814 37,676 47,034 47,363 32,346 64,355 67,209

Leasing information

Income and expenses information

Area categoryProperty No.

Property name

Acquisition date


Price information

Income and Expenditure by Property (1) Fiscal Period Ending January 2016 (As of January 31, 2016)


38

A-09 A-10 A-11 A-12 A-13 A-14 A-15 A-16S-FORT

Tsurumai marks

S-FORT Rokuban-cho

S-FORT Nakajima Koen

S-FORT Hokudai Mae

S-RESIDENCE Kobe

Isogamidori

S-FORT Kyoto Nishioji

S-FORT Katahira

S-FORT Gakuenmae

Jul. 1, 2015 Jul. 1, 2015 Jul. 1, 2015 Jul. 1, 2015 Jul. 1, 2015 Jul. 1, 2015 Jul. 1, 2015 Oct. 1, 2015

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


Balance sheet amount (million yen) 1,109 757 1,677 737 2,598 791 2,442 496

Total leasable area (㎡) 2,772.00 1,833.29 5,292.65 2,287.22 4,372.45 1,657.31 5,483.22 1,757.28

Leased area (㎡) 2,772.00 1,771.43 4,779.16 2,165.69 4,331.41 1,494.40 5,256.28 1,532.83


100.0% 96.6% 90.3% 94.7% 99.1% 90.2% 95.9% 87.2%



41,031 27,396 71,778 29,646 99,005 28,988 97,318 11,080




7,732 5,111 12,507 5,518 10,821 9,167 13,074 1,993

Management service fee 1,904 1,491 3,106 1,165 3,149 1,703 4,525 538


Utilities expenses 300 267 1,567 461 568 996 947 120

Repair Cost 54 1,336 3,499 691 1,888 2,428 5,300 352


Trust fees 354 354 472 354 472 454 354 188

Other 5,054 1,616 3,719 2,783 4,604 3,531 1,775 771

③ NOI (= ①－②) (thousand yen) 33,298 22,285 59,270 24,128 88,184 19,820 84,243 9,086



22,394 13,625 43,893 17,983 66,922 10,680 51,814 6,017


235 172 524 - - 141 165 213

⑦ NCF (= ③－⑥) (thousand yen) 33,062 22,112 58,745 24,128 88,184 19,679 84,078 8,872

Leasing information



Property name

Acquisition date


Price information

39

B-01 B-02 B-03 B-04 C-01 C-02 C-03 C-04S-FORT

Shizuoka Hondori

S-FORT Suminodo

S-FORT Yokkaichi Motomachi

S-FORT Suzuka

S-FORT Maita Koen

S-FORT Nihonbashi

Hakozaki

S-FORT Itabashi Shimura

S-FORT Shiomi

Apr. 15, 2015 Apr. 15, 2015 Jul. 1, 2015 Jul. 1, 2015 Apr. 15, 2015 Jul. 1, 2015 Jul. 1, 2015 Jul. 1, 2015

Acquisition price (million yen) 297 1,420 480 580 987 925 645 866


Balance sheet amount (million yen) 313 1,486 527 633 1,026 964 670 907

Total leasable area (㎡) 911.40 3,332.16 1,691.28 2,286.69 1,609.80 1,114.38 1,119.54 1,042.48

Leased area (㎡) 846.30 3,193.97 1,691.28 2,103.99 1,476.25 1,028.47 1,017.17 1,022.47


92.9% 95.9% 100.0% 92.0% 91.7% 92.3% 90.9% 98.1%



17,217 86,646 25,179 31,654 50,222 29,182 23,279 33,327




6,406 13,390 4,934 5,041 9,917 9,710 7,160 5,233

Management service fee 1,922 2,837 1,643 1,850 4,230 1,854 1,262 2,102


Utilities expenses 233 3,509 789 1,156 875 545 348 673

Repair Cost 2,041 2,358 613 655 2,541 4,348 2,876 1,169


Trust fees 479 480 354 354 479 472 472 472

Other 1,685 4,051 1,489 961 1,698 2,448 2,162 768

③ NOI (= ①－②) (thousand yen) 10,811 73,256 20,244 26,613 40,305 19,471 16,119 28,094



5,919 49,684 13,022 18,152 24,271 13,942 11,333 21,083


- - 235 141 129 6,082 - -

⑦ NCF (= ③－⑥) (thousand yen) 10,811 73,256 20,008 26,471 40,175 13,389 16,119 28,094

Leasing information



Property name

Acquisition date

Other regional cities Greater Tokyo area

Price information


40

TotalC-05 C-06 C-07 C-08 C-09 29 Properties

S-FORT Noborito

S-FORT Shonan Hiratsuka

S-FORT Nishifunabashi

S-FORT Maihama

S-FORT Ichikawa

Jul. 1, 2015 Jul. 1, 2015 Jul. 1, 2015 Jul. 1, 2015 Jul. 1, 2015

Acquisition price (million yen) 666 818 732 1,130 809 30,962

Composition ratio 2.2% 2.6% 2.4% 3.6% 2.6%

Balance sheet amount (million yen) 694 883 763 1,172 835 32,607

Total leasable area (㎡) 1,022.10 1,717.46 1,397.64 1,726.56 1,255.90 72,691.55

Leased area (㎡) 971.39 1,504.72 1,397.64 1,705.68 1,096.86 69,205.76


95.0% 87.6% 100.0% 98.8% 87.3% 95.2%

Number of operating days 215days 215days 215days 215days 215days


22,555 30,643 27,643 43,317 31,059 1,458,576

Real estate rental revenues 21,344 29,277 25,142 38,829 29,629 1,299,936

Other lease business revenues 1,210 1,365 2,501 4,487 1,429 158,639


4,843 6,827 7,585 7,275 7,584 266,244

Management service fee 1,233 1,692 1,648 1,860 2,703 70,345

Taxes and dues - - - - - -

Utilities expenses 241 232 444 912 743 24,742

Repair Cost 623 326 1,529 1,793 1,640 64,195

Insurance expenses 37 50 40 52 46 2,512

Trust fees 472 472 472 472 472 12,710

Other 2,234 4,054 3,450 2,183 1,977 91,738

③ NOI (= ①－②) (thousand yen) 17,712 23,815 20,058 36,041 23,474 1,192,331

④ Depreciation (thousand yen) 6,194 7,475 7,104 7,855 3,548 362,572


11,517 16,340 12,953 28,185 19,925 829,758


107 - 240 - - 8,390

⑦ NCF (= ③－⑥) (thousand yen) 17,605 23,815 19,818 36,041 23,474 1,183,940

Leasing information



Property name

Acquisition date

Greater Tokyo area

Price information


Financial Documents: Balance Sheet

41

(Unit: thousand yen) (Unit: thousand yen)Current Fiscal Year

（January 31, 2016）Current Fiscal Year

（January 31, 2016）Assets Liabilities

Current assets Current liabilitiesCash and deposits 276,619 Operating accounts payable 72,714Cash and deposits in trust 705,877 Short-term loans payable 1,162,000Operating accounts receivable 4,243 Accounts payable – other 161,846Prepaid expenses 42,931 Accrued expenses 1,166Consumption tax receivable 144,140 Income taxes payable 1,581deferred income tax asset 27 Advances received 143,550Total current assets 1,173,839 Deposits received 12,870

Non-current assets Total current liabilities 1,555,730Property, plant and equipment Non-current liabilities

Buildings in trust 20,131,994 Long-term loans payable 16,000,000Accumulated depreciation △351,345 Tenant leasehold and security deposits in trust 150,602Buildings in trust, net 19,780,648 Total non-current liabilities 16,150,602

Machinery and equipment in trust 358,415 Total Liabilities 17,706,332 Accumulated depreciation △10,831 Net assets

Machinery and equipment in trust, net 347,584 Unitholdersʼ equityTools, furniture and fixtures in trust 2,894 Unitholdersʼ capital 16,015,052

Accumulated depreciation △396 SurplusTools, furniture and fixtures in trust, net 2,498 Unappropriated retained earnings 168,963

Land in trust 12,477,166 Total surplus 168,963Total property, plant and equipment 32,607,898 Total unitholdersʼ equity 16,184,016

Investments and other assets Total net assets 16,184,016Lease and guarantee deposits 10,284 Total liabilities and net assets 33,890,349Long-term prepaid expenses 98,327Total investments and other assets 108,611

Total non-current assets 32,716,510Total assets 33,890,349

Financial Documents: Statement of Income

42

(Unit: thousand yen)

Operating revenueRent revenue - real estate 1,299,936Other lease business revenues 158,639Total operating revenue 1,458,576

Operating expensesExpenses related to rent business 628,836Asset management fee 91,851Asset custody fee 5,015Administrative service fees 28,454Directorsʼ compensations 4,400Other operating expenses 101,288Total operating expenses 859,846

Operating income 598,729Non-operating income

Interest income 71Total non-operating income 71

Non-operating expensesInterest expenses 120,663Borrowing related expenses 180,020Deferred organization expenses 70,000Investment unit issuance costs 57,584Total non-operating expenses 428,268

Ordinary income 170,532Net income before income taxes 170,532Income taxes – current 1,596Income taxes – deferred △27Total income taxes 1,569Net income 168,963Unappropriated retained earnings 168,963

Current Fiscal YearFrom: March 16, 2015To: January 31, 2016

Financial Documents: Statements of Cash Flows

43

(Unit: thousand yen) (Unit: thousand yen)

Cash flows from operating activities Cash flows from financing activitiesNet income before income taxes 170,532 Proceeds from short-term loans payable 12,962,000Depreciation 362,572 Repayments of short-term loans payable △11,800,000Interest income △71 Proceeds from long-term loans payable 16,000,000Interest expenses 120,663 Proceeds from the issuance of investment units 15,957,467Investment unit issuance costs 57,584 Cash flows from financing activities 33,119,467Decrease (increase) in operating accounts receivable △4,243 Net increase (decrease) in cash and cash equivalents 982,496Decrease (increase) in consumption taxes receivable △144,140 Cash and cash equivalents at the beginning of period -Decrease (increase) in prepaid expenses △42,931 Cash and cash equivalents at the end of interim period 982,496Increase (decrease) in operating accounts payable 69,591Increase (decrease) in accounts payable – other 161,306Increase (decrease) in advances received 143,550Decrease (increase) in long-term prepaid expenses △98,327Other, net △32,926Subtotal 763,160Interest income received 71Interest expenses paid △119,496Income taxes – current △14Cash flows from operating activities 643,721

Cash flows from investing activitiesPurchase of property, plant and equipment in trust △32,966,807Payments for lease and guarantee deposits △10,284Repayments of tenant leasehold and security deposits in trust △19,086Proceeds from tenant leasehold and security deposits in trust 215,486Cash flows from investing activities △32,780,692



Feature of Excess of Earnings and Portfolio

44

Feature of Investments in Residential Properties Located in Regions outside Tokyo

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

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

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

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

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

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

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

Feature of Samty Residential Investment Corporationʼs Portfolio

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

Portfolio composition with average

building age of 7.6 years1

Stable supply of newly developed properties from the sponsor

2

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

Unitholder Information (as of January 31, 2016)

Number of Units by Unitholder Type

Number of Unit holders byUnit holder Type

Major Unitholders (top 10)

45

Total 163,340 units

Total 10,434 people

Unitholder nameInvestment

units(units)

Ratio

Japan Trustee Services Bank, Ltd.(Trust Account)

17,800 10.89%

Samty Co., Ltd. 10,000 6.12%Kinki Sangyo Credit Union 7,588 4.64%The Master Trust Bank of Japan, Ltd.(Trust Account)

6,437 3.94%

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

5,292 3.23%

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

3,919 2.39%

Daido shinyoukumiai 3,500 2.14%Individual 3,321 2.03%Individual 2,396 1.46%Osaka co-sei Shinkin Bank 2,310 1.41%Total 62,563 38.26%

（people）

Change in Investment Unit Price (June 30, 2015 to March 15, 2016)

46

0

10,000

20,000

30,000

40,000

50,000

60,000

70,000

70,000

75,000

80,000

85,000

90,000

95,000

100,000

Trading volume (right axis) Unit price (left axis)（JPY）（Unit）

Jun. 30,2015 Sep. 30,2015 Dec. 31,2015

Disclaimer This document has been prepared to provide information, and not for inviting investments in or recommending

transaction of certain products. When purchasing the investment units of Samty Residential Investment Corporation, please contact and inquire respective securities companies. Further to the above, we request investors to make final investment decisions by their own responsibility and judgment.

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

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

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

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

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

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

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

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