For Immediate Release

Transcription

1 For Immediate Release REIT Issuer: ORIX JREIT Inc. (TSE: 8954) Teruo Ozaki Executive Director ORIX JREIT Announces Property Acquisition (Tentative) HOTEL LiVEMAX Nagoya-Sakae Annex Asset Management Company: ORIX Asset Management Corporation Yoshitaka Kamemoto President and CEO Inquiries: Junko Kanazawa Director, Corporate Senior Vice President TEL: TOKYO, December 26, 2016 ORIX JREIT Inc. ( OJR ) announced that our asset management company, ORIX Asset Management Corporation ( OAM ), passed a resolution on the property acquisition as described below. 1. Summary of the Property ( Note1) OJR is going to acquire the Property after the following conditions precedent such as Ⅰand Ⅱ have been fulfilled by the seller. Fixed term lease agreement will become effective between Lessee and Lessor at the same time of the acquisition of the property. I. The construction of the property has been completed. II. Permissions and approvals for the property have been granted by the authority. <Rent scheme after acquisition> <Lessor> OJR *Trustee: Trust Bank(To be determined) Fixed term lease agreement 20 years <Lessee> LiVE MAX Co., ltd The master lease agreement will be concluded between Lessor and Trustee. Property to be acquired Acquisition price : Real estate trust beneficiary interest (Note2) Scheduled contract date : December 26, 2016 Scheduled acquisition date Current owner and seller Funding method : 1,500,000,000 (excluding national and local consumption taxes) : December 26, 2017 (Note3) : LiVE Max Co., ltd : Cash on hand or borrowings (To be determined) Payment term : 100% on delivery Notes: 1. Property refers to the property indicated above. 2. OJR is going to acquire the real estate trust beneficiary interest by the scheduled acquisition date. 3. The trust beneficial interest sale and purchase agreement for the properties to be acquired ( hereinafter the Purchase and Sales Agreements ) falls under the category of Forward Commitment as provided in the Comprehensive Guideline for Supervision of Financial Instruments Business Operators, etc. set by the Financial Services Agency since they are postdated Purchase and Sales Agreements where it is set forth that the settlement and delivery of the properties will be conducted later than one month just after the conclusion of agreement and such. Financial Impact on OJR in case the forward commitment cannot be fulfilled. In this regard, the Purchase and Sales Agreement stipulates cancellation provisions as following conditions. I. When either the seller or the buyer breaches the provisions of the Purchase and Sales Agreement (such a party referred to as the Breaching Party ), the counterparty shall set a certain period and demand the Breaching Party to implement its obligations within the period. If the Breaching Party fails to remedy its violations 1/13

2 II. within the period, the counterparty shall be able to terminate the Purchase and Sales Agreement. However, in case it is deemed that the violation can t be remedied within the period or it is remarkably difficult to remedy it within the period or it will take remarkably long time to remedy it, the counterparty can terminate the agreement immediately without any notifications. In case either the seller or the buyer breaches the provisions of the Purchase and Sales Agreement, the Breaching Party shall be obliged to compensate or indemnify the resulting damages, etc. of the counterparty within the scope of an equivalent cause-and-effect relationship. Property Type Area (Note2) Seller (Note3) Acquisition Price (million yen) Appraisal Value (million yen) (Note2) Ratio to Appraisal Value (%) NOI Yield (Note3) (%) Yield after Depreciation (Note4) (%) Hotel LiVEMAX Nagoya Sakae Annex (Tentative) Others Other Areas (Nagoya, Aichi) A Third Party 1,500 1, % Existing Portfolio (Note5) Notes: 1. Other Areas refers to areas other than the 6 Central Tokyo Wards, Remaining Tokyo Wards and Other Parts of the Greater Tokyo Area. 6 Central Tokyo wards refers to Chiyoda, Chuo, Minato, Shinjuku, Shibuya and Shinagawa wards and Remaining Tokyo Wards refers to the remaining Tokyo wards other than the 6 Central Tokyo Wards. Other Parts of the Greater Tokyo Area refers to parts of Tokyo other than the 6 Central Tokyo Wards and Remaining Tokyo Wards, Kanagawa, Saitama and Chiba Prefectures. 2. As the property is still under construction, OJR has conducted appraisal for non-completed building, etc., in accordance with the real estate appraisal standards defined by the Ministry of Land, Infrastructure and Transport, which came into force on November 1, 2014 (Partially revised on May 1, 2014 ). Please refer to 9. Appraisal Summary for details. 3. The NOI Yield of Property is calculated by using the following formula: Net Operating Income in the direct capitalization method recorded in the appraisal reports at the time of decision to acquire / Scheduled acquisition price. The calculated figures are rounded to the first decimal place. 4. The Yield after Depreciation of the Property is calculated by using the following formula: ( Net Operating Income in the direct capitalization method recorded in the appraisal reports at the time of decision to acquire estimated depreciation by OAM) /Scheduled acquisition price. The calculated figures are rounded to the first decimal place. 5. Existing Portfolio refers to the combination of the properties owned as of August 31, 2016 and the four properties such as Gaien Nishi-dori Building, PRIZE TENJIN and Hotel Nikko Himeji, intervillage OH! MAGARI (Extension) acquired after the 30 th fiscal period ending February 28, 2017 and deducted by Toyo MK Building disposed of in the same period. NOI Yield and Yield after Depreciation of existing portfolio are calculated based on the annualized actual figures for properties owned as of August 31, 2016 and the figures for the four properties acquired in and after the 30 th fiscal period ending February 28, 2017 are calculated based on the figures in appraisal reports at the time of acquisition. 2/13

3 2. Purpose of the Acquisition The current Japanese economy hasn t recovered from a temporary slowdown, with capital investment and personal consumption still being stagnant. As for the global economy, concerns over the economic slowdown of emerging countries are increasing and an unstable condition is continuing due to the impact of the political events like Brexit and the result of U.S. presidential election. Although difference exists among asset types, rental conditions are expected to improve comprehensively. In such a real estate market, OJR will utilize its three strengths of 1) Diversified REIT, 2) ORIX Synergy (Note) and 3) Operating Expertise to implement an ongoing external growth strategy based on the following investment policies while grasping change of economy flexibly. Balance risk management and selective investment in various asset types by utilizing the strength as a diversified REIT, extensive pipelines from the ORIX Group and expertise backed by ORIX Synergy. Continue to consider property replacement by grasping the market environment. Despite the temporary influence from yen fluctuation in the short term, demands for hotels are expected to grow steadily in the mid-long term with increasing inbound visitors. In addition, as key performance drivers of hotels, tourism and sightseeing, are different from those of its traditional property categories such as office and retail facilities, OJR thinks that acquisition of hotels can contribute to further diversification of growth factors in its portfolio. Based on the above, OJR decided to acquire (Tentative) HOTEL LiVEMAX Nagoya-Sakae Annex. This acquisition demonstrates OJR's strength in securing a variety of acquisition opportunities by leveraging ORIX Synergy, as ORIX group comprehensively undertakes brokerage business including information of disposition of the property. OJR will continuously pursue stable growth of unitholders value by combining our operating expertise with our external and internal growth strategies as well as our financial strategy. Note: The ORIX Synergy refers to the cooperative relationship between ORIX Group which indicates ORIX Corporation as well as its group companies and OJR. 3. Summary of Property to be acquired Specified asset category Trustee Term of trust agreement Real estate trust beneficiary interest (scheduled) To be determined Scheduled acquisition date December 26, 2017 Scheduled acquisition price Appraisal value 1,670,000,000 Date of Appraisal December 1, 2016 Appraiser Address December 26, 2017 to December 25, 2027 (Scheduled) 1,500,000,000 (excluding national and local consumption taxes) The Tanizawa Sogo Appraisal Co., Ltd. 4-7, Sakae,Naka-ku, Nagoya-Shi, Aichi Approx. 9-minute walk from Subway Sakae Station on Nagoya Subway Higashiyama Line Public transit access Approx. 10-minute walk from Subway Yaba-cho Station on Nagoya Subway Meijo Line Registered Area m 2 Land Building (Schedu led) Type of ownership Usage restrictions Registered usage Registered completion date Type of ownership Fee simple ownership Commercial zone Hotel, Retail End of September 2017 (Scheduled) Fee simple ownership 3/13

4 Registered Area 2,098.59m 2 Registered construction Architect Structural engineer General contractor Building inspection agency Main facilities and specifications Earthquake resistance (with or without earthquake insurance) (Note1) Seller (Previous beneficiary) Scheduled Property Manager Collateral Special notes Special features of the Property Steel-frame reinforced concrete with flat roof, 8 floors X-ARK URBAN ARCHITECT INC. X-ARK URBAN ARCHITECT INC. NIHON KENSETSU CO.LTD. Good-eyes Elevator: 2 Hotel guest rooms: 113 (Single room:103, twin room:9, other:1) PML 6% (Without earthquake insurance) Based on Sompo Risk Management & Health Care Inc. report. LiVE MAX Co., ltd CBRE, Inc. None None Summary of the Engineering Report A hotel under construction is located within approx. 9-minute walk from Subway Sakae Station on Nagoya Subway Higashiyama Line and approx. 10-minute walk from Subway Yaba-cho Station on Nagoya Subway Meijo Line. Sakae area, where this hotel stands, is only 2 stops (and 6 minutes ride) away from Nagoya Station, and is the largest commercial area in Chubu region Completion of the hotel is scheduled at the end of September, OJR is going to acquire the hotel according to the purchase option agreement. Nagoya has seen 40% average annual growth of visitors for the past 5 years, and accommodation needs in the city has been increasing as its favorable location on 2 major sightseeing routes - the "Dragon route" connecting Nagoya and Hokuriku region and the "Golden route" connecting Tokyo and Osaka. Hotel room occupancy rate in Nagoya has been over 80%. The hotel is an accommodation specialized hotel with 113 guest rooms OJR is going to conclude Fixed term lease agreement with LiVE Max Co., ltd, which is the lessee and operator of the hotel. Rent is going to be fixed for the first 10 years, and be able to revise it in every 2 years from the 11th year. LiVE Max Co., ltd. operates approx. 60 hotels with more than 3,000 guest rooms throughout the nation and is especially strong in low-end accommodation specialized hotels. Reporting Company Tokio Marine & Nichido Risk Consulting Co.,Ltd. Date of inspection December, 2016 Maintenance Cost Replacement Cost 19 million yen (Note2) (Total amount of 12 years from the date of inspection) 561 million yen (Note2) Summary of Rental status (Scheduled) No. of tenants 1 Gross rental income Security deposits Non-disclose (Note3) Non-disclose (Note3) Total rent space 2,098.59m 2 4/13

5 Total rentable space 2,098.59m 2 Latest Occupancy rate Assumed net operating income (NOI) 100% (Different from hotel room occupancy rate) 78 million per annum (Note2) The assumed net operating income (NOI) represents the assumed revenue and expenditure balance under stabilized occupancy, based on the terms of the lease contract, etc. during the fiscal year of the acquisition, but excluding extraordinary factors that may occur during the first year of acquisition. The preconditions are as below. The following figures don t represent figures assumed by OJR for the current fiscal year. 1) Occupancy rate: 100% 2) Taxes: Calculated based on the standard tax amount for fiscal year 2016 regarding the land. Assumed them according to OAM s calculation regarding the building. Notes: 1. PML (Probable Maximum Loss) shows the ratio of construction work cost for recovering a building from the damage to its original state before the damage against replacement cost, when assuming an earthquake that may occur once in 475 years in average in probability statistics (recurrence interval of 475 years). The earthquake risk of a building is evaluated based on the event risk curve that shows the relationship of amount of expected loss (horizontal axis) and probability for the loss to exceed the year (vertical axis). However, the risk curve has variability because loss evaluation comes with uncertainties in earthquake resistance performance of the building, behavior of earthquake vibration, etc. Accordingly, the above PML figures use the risk curve with credibility level of 90%, and are rounded to the nearest whole number. 2. Figures are rounded down to the nearest million yen. 3. As we can t obtain consent regarding disclosure from Lessee, we don t disclose specific information. 5/13

6 Trend of total of lodgers in Nagoya *Figures are rounded to the nearest whole number. Unit: k 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Japanese Foreigners Annual ave. occupancy rate 100% 1, % % 74% 78% 66% 67% 60% 6,674 7,098 40% 6,670 6,233 6,345 20% 0% FY2011 FY2012 FY2013 FY2014 FY2015 Reference: Nagoya city Survey of Tourists and Overnight Guests in Nagoya City as well as Survey of Tourist Accommodation by Japan Tourism Agency 6/13

7 Rendering and map 7/13

8 4. Profile of Seller (As of November 15, 2016) Company name Address Representative Primary business Capital Major shareholders and Shareholding Ratio Net Assets Total Assets Date of establishment July 23, 1998 Relationships with OJR or our asset management company Capital relationship Personal relationship Business relationship Applicability to related parties 5. Information of Seller, etc. LiVE MAX Co., ltd , Shinjuku, Shinjuku-ku, Tokyo Ken Ariyama Intermediate, Possession, leasing and management of real estates 50 million Non-disclose *Not disclosed as the consent of the Company could not be obtained. Non-disclose *Not disclosed as the consent of the Company could not be obtained. Non-disclose *Not disclosed as the consent of the Company could not be obtained. There is no capital relationship required for reporting between OJR and the Company. There is no personal relationship required for reporting between OJR or OAM and the Company. There is no business relationship required for reporting between OJR or OAM and the Company. The Company does not fall under related party of OJR. The Property is not acquired from a related party with OJR or OAM. 6. Transaction with related parties etc. (1) Acquisition of the asset OJR doesn t acquire the property from the related party with OJR or OAM. (2) Intermediate regarding the asset acquisition OJR is going to execute Intermediate Agreement with ORIX Corporation. Please refer to 7. Profile of Intermediary for the details. 7. Profile of Intermediary (As of November 30, 2016) Company name ORIX Corporation ( the Company ) Address 2-4-1, Hamamatsu-cho, Minato-ku, Tokyo Representative Makoto Inoue Primary business Lease, installment sales and other financial services, real estate-related businesses, etc. Shareholders equity (As of September 30, 2016) 220,469 million Major shareholders (As of September 30, 2016) Japan Trustee Services Bank, Ltd. (trust account) Net Assets (As of September 30, 2016) 2,524,396 million yen *Based on the consolidated financial results Total Assets (As of September 30, 2016) 10,782,692 million yen *Based on the consolidated financial results Intermediary commission 45 million which stands at 3% of the acquisition price Date of establishment March 28, /13

9 Relationships with OJR or its asset management company Capital relationship Personal relationships Business relationships Applicability to related parties There is no capital relationship required for reporting between OJR and the Company. However, the Company is the parent company of OAM and falls under related parties of OAM as stipulated in the Act on Investment trusts and Investment Corporations (hereinafter the Investment Trusts Act. ) 63 persons of the officers and employees of OAM are seconded from the Company as of November 30, OJR acquired two properties at 6,312 million in the 30 th Fiscal Period ended August 2016 and two properties at 4,633 million in the 30 th Fiscal Period ending February 2017 from the Company. The Company does not fall under the related parties of OJR. As mentioned above, the Company falls under the related parties of OAM as stipulated in the Investment Trusts Act. 8. Future Outlook The impact of this property acquisition to OJR s performance will be minimal and there is no change in the earnings and distributions forecast for the 30 th fiscal period from September 1, 2016 through February 28, 2017 and the 31 st fiscal period from March 1, 2017 through August 31, /13

10 9. Appraisal Summary Name of asset (Tentative) HOTEL LiVEMAX Nagoya-Sakae Annex Date of Value Appraisal Value (In thousands of yen) Appraiser Item Content December 1, ,670,000 The Tanizawa Sogo Appraisal Co., Ltd Grounds (In thousands of yen) Capitalization Method 1,670,000 Calculated with the DCF method as a standard and by conducting verification based on the direct capitalization method. Valuation by the Direct Capitalization Method 1,700,000 (1) Gross Operating Revenue [(a)-(b)] 89,700 (a) Effective gross revenue 89,700 Assessed rent revenue considered at the stable level according to competitiveness of the property and its actual trends, market trend as well as recent leasing examples. (b) Vacancy loss 0 Assessed based on level of stable vacancy rate in consideration of the competitiveness of the property, its actual trends and market trends (single tenant) (2) Operating Expenses 10,989 Maintenance Expenses 0 Assessed based on leasing agreements to be leased and actual trends, the level of the maintenance expenses in similar properties Utility Expenses 0 Assessed based on leasing agreements to be leased and actual trends, the level of the utility expenses in similar properties Repair Expenses Property Management Fee 560 2,069 Assessed based on the engineering report and the level of the repair expenses in similar properties Assessed based on the agreement to be concluded and the level of the property management fee in sililar properties Tenant Advertisement Cost 75 Assessed based on turnover rate considered to be stable in consideration of the competitiveness of the property, actual trends and market trends Tax and Public Dues Casualty Insurance 7,713 Included based on the actual record of land in Assumed it regarding the building 124 Assessed in reference to the estimate amount, levels for similar properties Other Expenses (3) Net Operating Income [(1)-(2)] 78, Assessed in reference to actual results (4)Profit from Managing Security Deposit 449 Non-disclose As it is deemed OJR may be impacted badly due to disclosure and the disclosure may damage unitholders' profits, OJR decided not to disclose details (5)Capital Expenditure 1,120 Assessed in reference to the engineering report and levels for similar properties (6)Net Revenue [(3)+(4)-(5)] 78,039 (7)Cap Rate 4.6% Assessed based on its leasing and control of rights in consideration of the asset type, location and building conditions of the property, market trends in the real estate market and transaction examples 10/13

11 DCF Method 1,650,000 Discount Rate less than 10 years after starting leasing 4.3% Assessed based on details in agreements and its leasing and control of rights in consideration of the asset type, location and building conditions of the property, the level of funding costs and trends Discount Rate more than 10 years after starting leasing 4.7% Assessed based on details in agreements and control of rights in consideration of the asset type, location and building conditions of the property, the level of funding costs and trends Terminal Cap Rate 4.8% Assessed based on current capitalization yield at the time of price estimation in consideration of factors such as future uncertainty Cost Approach 1,660,000 Ratio of Land 54.5% Ratio of building 45.5% Any special considerations made in the reconciliation of estimated value Market participants make decisions with a focus on revenue stability, growth potential, liquidity at the time of resale, and revenue prices incorporating this process are highly standardized. Accordingly, the appraisal value has been determined based on the Capitalization Method Notes: 1. This is the English translation of original Japanese documents and is provided solely for information purposes. If there are any discrepancies between the translation and the Japanese original, the latter shall prevail. 2. The original Japanese version of this announcement is being distributed today to the Kabuto Club, the Ministry of Land, Infrastructure, Transport and Tourism Press Club, and the Ministry of Land, Infrastructure, Transport and Tourism Construction Specialty Publication Press Club 11/13

12 Reference Materials Portfolio summary after acquisition of the Property *The property Property Acquisition (Note 2) % of Date (Note 1) Price (million yen) Total Acquisition Price Offices 6 Central December 1, 2001 Aoyama Suncrest Building Tokyo Wards February 2, , Round-Cross Ichi-bancho December 1, , Round-Cross Nishi Shinjuku December 1, , DT Gaien December 21, , Yoyogi Forest Building December 21, , Round-Cross Minami Azabu December 21, , Round-Cross Akasaka January 10, , Round-Cross Mita January 10, , Round-Cross Shiba Daimon January 10, , Round-Cross Tsukiji January 10, , ORIX Shiba 2-chome Building September 29, , Aoyama 246 Building March 3, , Round-Cross Shinjuku April 28, , Seafort Square Center Building September 30, 2005 April 28, 2006 June 26, , Logistics Facilities ORIX Akasaka 2-chome Building December 4, , Round-Cross Shinjuku 5-chome April 26, , Nihonbashi Honcho 1-chome Building March 28, , Round-Cross Shibuya March 28, , ORIX Suidobashi Building March 28, , ORIX Shinagawa Building June 27, , ORIX Real Estate Nishi Shinjuku Building March 27, , OX Tamachi Building March 29, , MG Shirokanedai Building November 1, , SHIBUYA PINE Bldg. March 20, , MG Ichigaya Building April 4, , Round-Cross Ginza 2-chome September 30, , ARK Hills South Tower October 15, , Round-Cross Akihabara January 26, , Gaien Nishi-dori Building September 30, , Subtotal 204, Remaining Carrot Tower December 1, , Beside Kiba December 21, , ORIX Ikebukuro Building April 18, , KN Jiyugaoka Plaza May 30, , ORIX Meguro Building July 29, , Akihabara Business Center June 1, , Subtotal 32, Other Parts of Neo City Mitaka December 1, , the Greater Tokyo Area Round-Cross Kawasaki April 27, , Omiya Miyacho Building March 27, , Omiya Shimocho 1-chome Building March 29, , ORE Omiya Building April 15, , Subtotal 21, Other Areas Nagoya Itochu Building September 29, , ORIX Koraibashi Building April 27, , Lunar Sendai June 28, , ORIX Nagoya Nishiki Building September 29, , ORE Sapporo Building October 1, , ORIX Kobe Sannomiya Building September 29, , ORE Nishiki 2-chome Bldg. October 1, , DOJIMA PLAZA BLDG. December 22, , PRIME SQUARE HIROSE-DORI April 1, , Hamamatsu Act Tower April 15, , ORIX Yodoyabashi Bldg. May 2, , SAPPORO BRICK CUBE April 14, , Albore Kagoshima July 1, , Subtotal 90, Offices Total 348, Other Parts of Toda Logistics Center March 28, , the Greater Tokyo Area Ichikawa Logistics Center September 29, , Iwatsuki Logistics Center October 1, , Subtotal 24, Other Areas Sakai Logistics Center North Building March 30, , Komaki Logistics Center June 30, , Subtotal 12, Logistics Facilities Total 37, /13

13 Property Acquisition (Note 1) Date Price (million yen) Total Acquisition Price Retail 6 Central Nihon Jisho Minami Aoyama Building October 31, , Facilities Tokyo Wards CUBE Daikanyama March 31, , aune Yurakucho April 1, , Cross Avenue Harajuku November 1, , J-ONE SQUARE January 31, , JouLe SHIBUYA April 1, , SO-CAL LINK OMOTESANDO October 1, , Kita Aoyama Building February 1, Subtotal 31, Remaining aune Ikebukuro September 30, , Tokyo Wards Subtotal 6, Other Parts of aune Kohoku March 10, , the Greater Tokyo Area aune Makuhari March 10, , Maruetsu Sagamino March 1, , CROSS GARDEN KAWASAKI March 29, , Tecc Land Totsuka (Land) April 1, , Clio Fujisawaekimae December 20, , Subtotal 32, Other Areas Kobe Momoyamadai Shopping Center (Land) March 5, , Okayama Kume Retail Facility January 31, , Home Center Musashi Sendai Izumi (Land) January 11, , aune Sapporo Ekimae June 29, , Morioka Minami Shopping Center Sansa July 31, , GRAN MART Tegata November 1, AEON TOWN Sendai-Izumiosawa(Land) November 1, , Cross Mall Shimonoseki-Chofu January 10, , intervillage OH! MAGARI (Note3) April 1, , Valor Suzuka Shopping Center April 1, , aune Sendai June 20, , Friend Town Fukaebashi (Land) September 30, , KONAMI SPORTS CLUB KORIEN October 30, , PRIZE TENJIN October 3, , Subtotal 38, Retail Facilities Total 110, Residential 6 Central We Will Hatchobori June 1, , Properties Tokyo Wards Shibaura Island Air Tower July 28, , Belle Face Togoshi Statio May , Belle Face Meguro October 19, , Central Crib Roppongi April 1, , Subtotal 21, Remaining Belle Face Kamata June 1, , Tokyo Wards Belle Face Hongo Yumicho June 1, , Belle Face Mishuku March 30, , West Park Tower IKEBUKURO April 1, , Belle Face Higashijujo April 4, , Subtotal 32, Other Parts of R-Styles Musashi-Kosugi October 1, , the Greater Tokyo Area Subtotal 4, Other Areas Belle Face Osaka Shinmachi June 1, , Belle Face Amagasaki June 1, , Belle Face Kanazawa Kohrinbo November 1, , Subtotal 9, Residential Properties Total 68, Others 6 Central Tokyo Wards TAKANAWA DUPLEX C s June 21, , Subtotal 2, Other Parts of Cross Gate January 10, , the Greater Tokyo Area GOOD TIME LIVING Shin-urayasu September 6, , Subtotal 16, Other Areas VIA INN SHINSAIBASHI BLDG. September 30, , HOTEL KEIHAN SAPPORO September 30, , Richmond Hotel Yamagata Ekimae September 30, , Hotel Nikko Himeji September 30, , * (Tentative)HOTEL LiVEMAX Nagoya-Sakae Annex December 26, 2017 (Scheduled) 1, Subtotal 14, Others Total 33, Grand Total 109 properties 597, Notes: 1. Acquisition price above refers to acquisition price (fractions rounded down) specified in the purchase and sale agreement. Consumption taxes are not included in the price. 2. Fractions are rounded to the first decimal place for the Percentage of total acquisition price. Totals for the Percentage of total acquisition price may not tally as a result of this rounding. 3. As OJR acquired intervillage OH! MAGARI(extension) at 83million as of December 1, 2016, acquisition price of it indicates the total acquisition price by now. % of (Note 2) 13/13