For Immediate Release

Transcription

1 For Immediate Release ORIX JREIT Announces Property Acquisition SUNROUTE PLAZA TOKYO REIT Issuer: ORIX JREIT Inc. (TSE: 8954) Teruo Ozaki Executive Director Asset Management Company: ORIX Asset Management Corporation Yoshitaka Kamemoto President and CEO Inquiries: Yukio Wada Executive Officer TEL: TOKYO, January 17, 2017 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 Property Type Price to be Area (Note2) Seller (Note3) acquired (million yen) Appraisal Value (million yen) NOI Yield (Note4) (%) Yield after Depreciation (Note5) (%) SUNROUTE PLAZA TOKYO Others (Hotel) Other Parts of the Greater Tokyo Area (Urayasu-shi, Chiba) Sponsor 26,800 26, Existing Portfolio (Note6) Notes: 1. Property refers to the property to be acquired in the above. 2. Other Parts of the Greater Tokyo Area refers to parts of Tokyo other than the 6 Central Tokyo Wards and Remaining Tokyo Wards, namely Kanagawa, Saitama and Chiba Prefectures. 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. 3. As to the Seller, Sponsor indicates ORIX Group. ORIX Group refers to ORIX Corporation and its group companies. 4. The NOI Yield of Property is calculated by dividing Net Operating Income based on the direct capitalization method indicated in the appraisal reports at the time of decision to acquire by the price to be acquired. The figures are rounded to the one decimal place. 5. The Yield after Depreciation of Property is calculated by dividing (Net Operating Income based on the direct capitalization method indicated in the appraisal reports at the time of decision to acquire Depreciation estimated by OAM) by the price to be acquired. The figures are rounded to the one decimal place. 6. 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, Hotel Nikko Himeji, PRIZE TENJIN and intervillage OH! MAGARI (Extension) acquired in and after the 30th 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 properties acquired on and after February 28, 2017 are calculated based on the figures in appraisal reports at the time of acquisition as well as Depreciation estimated by OAM in principal. 1/13

2 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, an unstable condition is continuing due to comprehensive concerns over impact by the U.S. interest rate hike, geopolitical tension, impact of Brexit issues. 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 while grasping change of economy flexibly. Demands for hotels are expected to grow in the mid-long term with increasing inbound visitors and so forth. Compared with offices and retail facilities which are main properties of OJR, as tourism and sightseeing have a major factor on performance of hotels, 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 SUNROUTE PLAZA TOKYO. The property is located in Tokyo Disney Resort (TDR) that has outstanding capabilities to attract visitors in the world and stable demand is expected from visitors in and outside Japan. In addition, ORIX Group has been consistently operating hotels since 2002 and it is considered capable of utilizing the REIT s strengths, ORIX Synergy and operating expertise, as it plans to continue to exercise operation know-how in the future. OJR will continuously pursue stable growth of unitholders value by making the best use of our external and internal growth strategies as well as our financial strategy. Note: The ORIX Synergy refers to the cooperative relationship between ORIX Group companies and OJR. 2/13

3 3. Acquisition Summary Property to be acquired : Real estate trust beneficiary interest Price to be acquired : 26,800,000,000(excluding national and local consumption taxes) Scheduled contract date : January 17, 2017 Scheduled acquisition date : January 20, 2017 Current owner and seller : Yugen Kaisha SunHotel Investment Funding method : Borrowings Payment term : 100% on delivery 4. Summary of Property to be acquired Specified asset category Trustee Real estate trust beneficiary interest Mizuho Trust & Banking Co., Ltd. Term of trust agreement From March 28, 2002 to January 19, 2027 Date to be acquired January 20, 2017 Price to be acquired Appraisal value 26,800 million 26,900 milliion Date of Appraisal December 1, 2016 Appraiser Address Japan Real Estate Institute 1-6, Maihama, Urayasu-shi, Chiba Public transit access Approx. 20-minute walk from JR MAIHAMA Station on JR Keiyo Line and Approx. 5-minute ride by circuit buses. Land Registered Area 19, m 2 Type of ownership Fee simple ownership Usage restrictions Semi-industrial area Building Registered usage Registered completion date Hotel Existing wing: June 1986 Extension wing : October 2003 Type of ownership Fee simple ownership Registered Area Registered construction Architect Structural engineer General contractor Building inspection agency Main facilities and specifications The whole building: 38, m 2 Existing wing : 29, m 2 Extension wing : 9, m 2 Existing wing: Steel-reinforced concrete, reinforced concrete, Steel framed with tiled flat roof, 9 floors with 1 underground floor Extension wing : Steel frame flat roof, 8 floors Existing wing : Kabushiki Kaisha SUNROUTE HOTEL SYSTEM First-Class Architect Office Extension wing : NIHON SEKKEI, INC. Existing wing : Kabushiki Kaisha SUNROUTE HOTEL SYSTEM First-Class Architect Office Extension wing : NIHON SEKKEI, INC. Existing wing : TODA OBAYASHI Fujita MITSUI CONSTRUCTION Consortium Extension wing : KAJIMA CORPORATION Existing wing : Urayasu-Shi Extension wing : JAPAN ERI CO.,LTD. Elevator: 14 Escalator: 1 Parking: 290 vehicles 3/13

4 Earthquake resistance (with or without earthquake insurance) (Note1) Previous owner(beneficiary) Scheduled property manager Collateral Special notes Special features of the Property Summary of the Engineering Report Reporting Company Hotel guest rooms: to 20m 2 : 192 rooms, 24 to 28 m 2 : 483 rooms, 33 to 96 m 2 : 21 rooms 6% (without earthquake insurance) * Based on the report by Sompo Risk Management & Health Care Inc. Yugen Kaisha SunHotel Investment ORIX Real Estate Corporation None Pursuant to the land purchase and sale agreement concluded between Oriental Land Co., Ltd. (hereinafter OLC ) and the initial trustor, the memorandum for the hotel construction concluded among Chiba prefecture, OLC and the initial trustor and other agreements, (i) when transferring ownership of the land of the property, the preferential negotiation right shall be granted to OLC, (ii) when transferring ownership of the land of the property, an approval from Public Enterprises Land Management Bureau Chief of Chiba prefecture is required and (iii) when transferring ownership of the property or the real estate trust beneficiary interest relating to the property, the preferential negotiation right shall be granted to Tokyo Bay Hotels Co., LTD, the largest shareholder of the hotel management company and the lessee and others. A rare official hotel of Tokyo Disney Resort (TDR), the outstanding large scale theme park in the world and site with the largest number of visitors in Japan. Urayasu-Shi boasts an accommodation market which is one of the largest in Japan with TDR s incomparable capability to attract visitors. The property s hotel room occupancy rate was 95% in the fiscal period ended March 31, 2016 and ADR (*) was approx. 19,700 yen. It maintained a hotel room occupancy rate of 78% and ADR of approx. 17,300 yen even in the fiscal period ended March 31, 2012 which was affected by the Great East Japan Earthquake. TDR Official Hotel has high appeal among visitors of TDR in having excellent traffic convenience with Disney Resort Line (monorail) and circuit buses as well as various benefits. Total of 696 guestrooms including 192 guestrooms (16 to 20 m 2 ), 483 guestrooms (24 to 28 m 2 ) and 21 guestrooms (33 to 96 m 2 ). Along with wedding facilities such as a chapel & banquet hall, it has Japanese and Western restaurants, a Disney shop, etc. Currently, there are no new supply plans of official hotels. ORIX Group has interests in PLAZA SUNROUTE Co., which is a lessee as well as the hotel management company since It is possible to manage facilities in cooperation with ORIX Group after the acquisition. As of January 17, 2017, ORIX Group still has approx. 30% stakes in it. (*)The Average Daily Rate (ADR) represents the amount calculated by dividing the total revenue from the hotel accommodation division during a certain period excluding service fees by the total number of rooms sold. Just Ltd. Date of inspection November 7, 2016 Maintenance Cost The whole buildings: 3,477 million yen (Note2) *Total amount of 12 years from the date of inspection 4/13

5 Replacement Cost The whole buildings: 12,521 million yen (Note2) Summary of Rental status (as of December 31, 2016) No. of tenants 1 Gross rental income <Rent schedule> Annual guaranteed minimum rent: 1,750 million Annual sales-linked rent: Only the annual guaranteed minimum rent will be received if it falls below a certain annual revenues standard. If it exceeds a certain annual revenue standard, 50 million or 100 million will be received. Rent receiving method: 150 million will be received per month regardless of revenues. (Guaranteed minimum rent: million+sales-linked rent: 4.2 million (Note 3) ) Settlement method of sales-linked rent: To be settled within 3 months if there is shortage or overage of annual rent. Security deposits 300 million Total rent space 38, m 2 Total rentable space 38, m 2 Latest Occupancy rate Assumed net operating income (NOI) 100% *Different from hotel room occupancy rate 1,572 million per annum (Note2) The net operating income (NOI) represents the assumed revenue/expenditure balance under stabilized occupancy, based on the terms of the lease contract comprehensively 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; these figures are not what OJR expects for the current fiscal year. 1) Occupancy rate: 100% 2) Taxes: Taxes are calculated on the standard tax amount for fiscal year Notes 1. PML (Probable Maximum Loss) shows the ratio of cost of recovering a building after it is damaged to its state before the damage occurred 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. Figures are rounded to the one decimal place. Rent scheme after the acquisition Lessor Mizuho Trust & Banking Co., Ltd. Beneficiary: OJR Lease agreement Lessee PLAZA SUNROUTE Co., *ORIX Group has approx. 30% stakes in the company. Franchaise agreement SUNROUTE Co.,LTD., 5/13

6 TOP10 AMUSEMENT/THEME PARKS WORLDWIDE Rank Park Location Attendance MAGIC KINGDOM FL, U.S. 20,492,000 2 DISNEYLAND, CA, U.S. 18,278,000 3 TOKYO DISNEY LAND, Chiba, Japan 16,600,000 4 UNIVERSAL STUDIOS JAPAN, Osaka, Japan 13,900,000 5 TOKYO DISNEY SEA, Chiba, Japan 13,600,000 6 EPCOT FL, U.S. 11,798,000 7 DISNEY'S ANIMAL KINGDOM FL, U.S. 10,922,000 8 DISNEY'S HOLLYWOOD STUDIOS FL, U.S. 10,828,000 9 DISNEYLAND PARK AT DISNEYLAND PARIS, Marne-la-Valee, France 10,360, UNIVERSAL STUDIOS FL, U.S. 9,585,000 Reference:Extract from "THEME INDEX 2015 Global Attractions Attendance Report" by THEMED ENTERTAINMENT ASSOCIATION/AECOM Web site: Trend of Attendance to Tokyo Disney Resort(TDR) <Financial year from April to March> Reference:The above bar chart was made by OAM according to Press release materials by OLC. TDL referes to Tokyo Disney Land TDS refers to Tokyo Disney Sea. The ratio of each asset type in OJR s portfolio and the ratio of each rent type in Others of OJR s portfolio Notes 1. The ratio of each asset type in the above pie chart represents the ratio of each asset type of the total acquition price. The figures are rounded to the one decimal place. Each ratio of each Asset Type may not tally the total percentage due to rounding error. 2. The above pie chart in purple represents the ratio of Fixed rent and Variable rent in Others. The figures are rounded to the one decimal place. Fixed rent in properties continuously owned by OJR from the first day in the 28 th fiscal year ended February 29, 2016 to January 17, 2017 is calculated according to monthly rents which stand for the total of monthly rents and common service fees as well as management fees stipulated in agreements as of November 30, Variable rent in the property was calculated by dividing the total of actual variable rents including sales-linked rent from the 28 th fiscal year ended February 29, 2016 to the 29 th fiscal year ended August 31, 2016 by 12. In addition, Fixed rent and Variable rent in properties acquired in and after the 28 th fiscal period ended February 29, 2016 were calculated by dividing fixed rents in properties acquired in and after the 28 th ended February 29, 2016 according to the direct capitalization method indicated in the appraisal reports at the time of decision to acquire (Guaranteed minimum rents in SUNROUTE PLAZA TOKYO is recognized as fixed rents) by 12 and by dividing Variable rents in properties acquired in and after the 28 th ended February 29, 2016 according to the direct capitalization method indicated in the appraisal reports at the time of decision to acquire by 12. The total of each ratio of each Asset Type may not tally due to rounding error. 6/13

7 Photo and map Existing wing Extension wing 7/13

8 5. Profile of Seller (As of August 24, 2016) As of January 4, 2017 Company name Yugen Kaisha SunHotel Investment Address c/o Tokyo Kyodo Accounting Office 3-1-1, Marunouchi, Chiyoda-ku, Tokyo Representative Ryutaro Uchiyama Primary business Sales and Purchase, holding, management of real estate beneficiary interests. Sales and Purchase, lease, brokerage, management and holding of real estate. Capital 3 million yen Major shareholders Non-disclose *Not disclosed as the consent of the Company could not be obtained. Net Assets Non-disclose *Not disclosed as the consent of the Company could not be obtained. Total Assets Non-disclose *Not disclosed as the consent of the Company could not be obtained. Date of establishment March 4, 2002 Relationships with OJR or our asset management company There is no capital relationship required for reporting between OJR and the Company. However, ORIX Corporation, the parent company of OAM and ORIX Real Estate Corporation which is a subsidiary of ORIX Corporation Capital relationship ( related parties of OAM as stipulated in the ACT on Investment Trusts and Investment corporations (hereinafter Investment Trusts Act )) invest in the Company pursuant to the silent partnership agreement. There is no personal relationship required for reporting among OJR or OAM Personal relationship and the Company. There is no business relationship required for reporting among OJR or OAM Business relationship and the Company. The Company does not fall under a related party of OJR. ORIX Real Estate Investment Advisors Corporation which is a subsidiary of ORIX Corporation (a Applicable to related related party of OAM as stipulated in Investment Trusts Act) is contracted to party offer asset management for the Company. The Company falls under a related party as stipulated in the Affiliated Company Transaction Regulations, which are internal rules of OAM. 6. Information of Seller, etc. Company name Seller Yugen Kaisha SunHotel Investment Special relationships Please refer to 5. Profile of Seller in involved the above Background to and reason Acquired for the purpose of for acquisition investment and management Acquisition date Existing wing:march 28, 2002 Land:March 28, 2002 Extension wing: November 17, 2003 Acquisition price Omitted, as Seller held property for over a year. Owner before Seller Not a party having special relationship of interest Profile of Intermediary None 8/13

9 8. Transaction with Related-Party and so forth. Property Acquisition SUNROUTE PLAZA TOKYO is acquired from Yugen Kaisha SunHotel Investment. Please refer to 5. Profile of Seller in the above regarding the summary of the related party and so forth. Property management commission For SUNROUTE PLAZA TOKYO, OJR will conclude property management operation agreements with ORIX Real Estate Corporation. For a summary of the related party, please see following details. As of January 13, 2016 Company name ORIX Real Estate Corporation Address , Shiba, Minato-ku, Tokyo Representative Toyonori Takahashi Primary business Lease, management, sales and purchase of real estates. Residential land development Capital 200 million Major shareholders ORIX Corporation Net Assets Non-disclose Total Assets Non-disclose Date of establishment March 11, 1999 Capital relationship Personal relationship Business relationship Applicable to related party There is no capital relationship required for reporting between OJR and the company. ORIX Corporation, the parent company of OAM (a related party of OAM as stipulated in Investment Trusts Act) has stakes in the Company. There is no personal relationship required for reporting among OJR or OAM and the Company. There is no business relationship required for reporting among OJR or OAM and the Company. The Company doesn t fall under a related party of OJR. As the above-mentioned, the Company falls under a related party stipulated in Investment Trusts Act. 9. 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 10. Appraisal Summary Name of property Date of Value Appraisal Value (In thousands of yen) SUNROUTE PLAZA TOKYO December 1, ,900,000 Appraiser Item Content Japan Real Estate Institute Grounds (In thousands of yen) Capitalization Method 26,900,000 Valuation by the Direct 27,200,000 (2)Gross Operating Revenue [(1)-(g)-(h)] 1,800,000 (a)effective gross revenue 1,800,000 Recorded rent revenue and common service fee revenue (hereinafter "rent revenue,etc.") considering Annual guaranteed minimum rent 1,750,000 that the rent level of the current lease agreement can be achieved stably over the medium to long term based on the content of the current lease agreement, operation status of subject hotels, rent level Annual sales-linked rent 50,000 assuming new leasing of subject hotels, attribute of lessee, etc. (b)common Service Fees Revenue (c) (a)+(b) (d)utility Expense Income (e) Parking Space Income (f)other Revenue 0 1,800,000 Utility Expense Income is not recorded as the lessee will directly pay Utility Expense Income pursuant 0 to the lease agreement. 0 Parking Space Income isn't gained. 0 Other Revenue isn't gained. (1)Potential Gross Revenue (c)+(d)+(e)+(f) 1,800,000 Hotel Occupancy Rate 100% As for building leasing related to hotel management, it is general to conclude contracts under the assumption that management will be conducted over the long term. No vacancy loss is recorded as the (g)vacancy loss 0 vacancy risk associated with tenant departure is considered appropriate given the cap-rate adapted. (h)credit Loss 0 Recording of bad debt loss is judged to be unnecessary considering the status of the lessee, etc. (3)Operating Expensed (i)+(j)+(k)+(l)+(m)+(n)+(o)+(p) (i)maintenance Expensed (j)utility Expenses (k)repair Expenses (l)property Management Fee (m)tenant Advertisement Cost 292,637 As for Maintenance Expenses composed of cleaning expenses, facility management expenses, security 27,000 expenses etc., the amount paid by the lessee is recorded based on the lease agreement, interview with the requester, etc. Utility Expenses are not recorder as the lessee will pay the Utility Expenses based on the lease 0 agreement. Recorded considering management plans in the future and the fee level of similar properties as well as an annual average of renewal maintenance fees in the engineering report, based on the past actual 130,000 records. Property Management Fee, the commission paid to the subcontractor that controls tenant and building management businesses, etc., is recorded considering the fee rate of similar properties and the 59,400 specific characteristics of the property by referring fees based on the provisional property management agreement. Recording of tenant advertisement fee is judged unnecessary as relevant expenses such as i) brokerage & advertising expenses after reviewing lease agreements and ii) cost incurred upon tenant 0 replacement or renewal lease agreement should be considered in Cap Rate. Land 24,804 Assessed according to documents related to Tax and Public Dues. (n)tax and Public Dues (o)casualty Insurance (p)other Expenses Building Depreciation Assets 45,440 Assessed according to documents related to Tax and Public Dues. 2,330 Assessed according to documents related to Tax and Public Dues. Posted considering the insurance fee based on the insurance contract as well as the rate of insurance 2,763 fees of similar buildings Recorded the expenses for maintenance and management regarding a private road which SUNROUTE 900 PLAZA TOKYO faces. 10/13

11 (4)Net Operating Income [(2)-(3)] (q)profit from Managing Security Deposit (r)capital Expenditure (5)Net Revenue [(4)+(q)-(r)] (6)Cap Rate DCF Method Discount Rate Terminal Cap Rate Cost Approach Ratio of Land Ratio of Building Any special considerations made in the reconciliation of estimated value 1,507,363 Assessed by multiplying the remaining amount of the deposit according to the current leasing agreement of the building by its investment yield. Investment yield considered appropriate for fund 3,000 management during the deposit period is assessed as 1.0% with consideration to the interest rate levels of both fund management and procurement. Renewal costs necessary for functional maintenance of buildings actually incur irregularly but are calculated under an assumption that expected expenditure is accumulated in every term on average, 311,500 considering the past actual records, the level of capital expenditure and age of similar properties and an annual average of repair and renewal costs in the engineering report. 1,198,863 26,500,000 Cap rate is assessed considering uncertainty in the future and transaction yields of similar properties, 4.4% etc. with adjustment for spread arising from the locational and building conditions of the subject property as well as terms and conditions of contracts, other conditions. Calculated comprehensively considering specific characteristics of the property by referring to 4.2% investment yields for transactions of similar properties, etc. Assessed comprehensively considering future trends of investment yields, risks in the property as an investment target, general forecasts for economic growth rate and trends in property prices and rents, 4.6% etc. by referring to investment yields for transactions of similar properties, etc. 21,400, % 20.9% Determined using the Income Approach Value with the Cost Approach Value used only for reference considering that the Income Approach Value is more convincing because the price determination process is accurately reproduced with respect to earnings. *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. Note: 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. 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 2) % of Date (Note 1) 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, , * SUNROUTE PLAZA TOKYO January 20, 2017 (Scheduled) 26, Subtotal 43, Other Areas VIA INN SHINSAIBASHI BLDG. September 30, , HOTEL KEIHAN SAPPORO September 30, , Richmond Hotel Yamagata Ekimae September 30, , Hotel Nikko Himeji September 30, , Subtotal 12, Others Total 58, Grand Total 109properties 622, 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. The total acquisition price is indicated for intervillage OH! MAGARI as an extended building was additionally acquired (at 83 million) on December 1, Furthermore, as announced on December 26, 2016, (Tentative) HOTEL LiVEMAX Nagoya-Sakae Annex is scheduled to be acquired on December 26, 2017 after the completion of its construction and permissions and approvals for it by the authority. 13/13