Daiwa Securities Living Investment : Financial Report

34 th

Fiscal Period Business Report

(Statement of Financial Performance)

October 1, 2022 - March 31, 2023

https://www.daiwa-securities-living.co.jp/en/

Stock 8986

Code

6-2-1 Ginza, Chuo Ward, Tokyo https://www.daiwa-securities-living.co.jp/en/

I. Outline of the Investment Corporation

Financial Highlights

Distributions per Unit

34th period (ending March 2023) results		35th period (ending September 2023) forecast		36th period (ending March 2024) forecast
2,200 yen		2,200 yen		2,200 yen

Ⅱ. Asset Management Report

Ⅱ. Asset Management Report

Overview of Asset Management

1. Changes in Management Status of the Investment Corporation

Operating revenues

(million yen)					11,898	11,892
12,000					11,866
11,645				11,436
11,500			11,263
11,000		10,811
10,500	10,487
10,000
9,500
9,000
0
29th period	30th period	31st period	32nd period	33rd period	34th period	35th period	36th period
(Sep. 2020)	(Mar. 2021)	(Sep. 2021)	(Mar. 2022)	(Sep. 2022)	(Mar. 2023)	(Sep. 2023)	(Mar. 2024)
						(forecast)	(forecast)

Net income

(million yen)
6,500	6,133
6,000
5,500
5,000		4,621	4,652	4,828	4,748	4,763
4,500	4,457
4,432
4,000
3,500
0

29th period	30th period	31st period	32nd period	33rd period	34th period	35th period	36th period
(Sep. 2020)	(Mar. 2021)	(Sep. 2021)	(Mar. 2022)	(Sep. 2022)	(Mar. 2023)	(Sep. 2023)	(Mar. 2024)
						(forecast)	(forecast)

		30th period	31st period	32nd period	33rd period	34th period
		From October 1,	From April 1,	From October 1,	From April 1,	From October 1,
		2020	2021	2021	2022	2022
		to March 31, to September 30,	to March 31, to September 30,	to March 31,
		2021	2021	2022	2022	2023
Operating revenues	Million yen	10,487	10,811	11,263	11,436	11,898
(Of the above, rental revenues)	Million yen	(10,487)	(10,811)	(11,263)	(11,436)	(11,898)
Operating expenses	Million yen	5,386	5,721	5,938	6,094	6,326
(Of the above, property-related expenses)	Million yen	(4,222)	(4,524)	(4,696)	(4,806)	(5,010)
Operating income	Million yen	5,101	5,090	5,324	5,341	5,571
Ordinary income	Million yen	4,457	4,433	4,622	4,653	4,829
Net income	Million yen	4,457	4,432	4,621	4,652	4,828
Total assets	Million yen	335,601	336,301	350,956	353,676	366,565
(Period-over-period)	%	(8.2)	(0.2)	(4.4)	(0.8)	(3.6)
Net assets	Million yen	157,466	157,295	165,372	165,218	171,436
(Period-over-period)	%	(4.2)	(-0.1)	(5.1)	(-0.1)	(3.8)
Total amount of investment	Million yen	124,110	124,110	132,170	132,170	138,365
Number of units issued	Units	2,131,546	2,131,546	2,204,890	2,204,890	2,260,890
Net assets per unit	Yen	73,874	73,793	75,002	74,932	75,826

Distributions per Unit

(yen)
2,250
2,200			2,200	2,200	2,200
	2,180	2,180
2,160	2,160
2,150
2,190
2,100
2,050
2,000
1,950
0

29th period	30th period	31st period	32nd period	33rd period	34th period	35th period	36th period
(Sep. 2020)	(Mar. 2021)	(Sep. 2021)	(Mar. 2022)	(Sep. 2022)	(Mar. 2023)	(Sep. 2023)	(Mar. 2024)
						(forecast)	(forecast)

Net income per Unit

(yen)			75,826
75,500
75,000		75,002	74,932
74,500
74,000	73,874	73,793
73,500	73,502
73,000
72,500
0

29th period	30th period	31st period	32nd period	33rd period	34th period
(Sep. 2020)	(Mar. 2021)	(Sep. 2021)	(Mar. 2022)	(Sep. 2022)	(Mar. 2023)

Total distributions	Million yen		4,604		4,604		4,806		4,806		4,973
Distribution per unit	Yen		2,160		2,160		2,180		2,180		2,200
(Of the above, distribution of profits per unit)	Yen		(2,160)		(2,160)		(2,180)		(2,180)		(2,200)
(Of the above, excess-profit distribution per unit)	Yen		(－)		(－)		(－)		(－)		(－)
Ratio of ordinary income to total assets (Note 2)	%	1.4	(2.8)	1.3	(2.6)	1.3	(2.7)	1.3	(2.6)	1.3	(2.7)
Return on equity (ROE) (Note 2)	%	2.9	(5.8)	2.8	(5.6)	2.9	(5.7)	2.8	(5.6)	2.9	(5.8)
Capital adequacy ratio at the end of the period	%		46.9		46.8		47.1		46.7		46.8
(Period-over-period)	%		(-1.8)		(-0.1)		(0.3)		(-0.4)		(0.1)
Payout ratio	%		103.3		103.9		104.0		103.3		103.0
[Other reference information]
Number of investment properties	Properties		226		232		239		240		248
Depreciation for the period	Million yen		2,366		2,408		2,497		2,509		2,592
Capital expenditure for the period	Million yen		684		476		607		573		449
Rental NOI (Net Operating Income) (Note 2)	Million yen		8,632		8,696		9,064		9,139		9,480
FFO (Funds from Operation) per unit	Yen		3,260		3,268		3,288		3,307		3,344

Portfolio status	Use
(ended March 2023)
Number of properties
248 properties	Healthcare
Scale of assets	29.8%
Studio
363.2 billion yen
47.9%
Occupancy rate at the end of the period	Family
99.1%
22.3%

Area ratio

Hokkaido4.7% Tohoku2.0%

Kyushu3.0%Shinetsu0.3%

Shikoku0.7%

Chugoku1.4%

Kinki
24.8%	Kanto
	56.3%
Tokai
6.9%

Age ratio

5-10years10-15years

10.9% 9.3%

Under 5years
19.6%	Average
	building age
	14.1 year	15-20years
Over 20years	44.5%
15.7%

(Note 2)
FFO (Funds from Operation) multiple (Note 2)	Times	16.6	17.2	17.5	17.4	16.2
Debt service coverage ratio (Note 2)	Times	15.6	14.5	14.6	14.6	14.6
Interest-bearing debt	Million yen	171,737	172,687	178,887	181,687	188,137
Period-endinterest-bearing debt to period-end	%	51.2	51.3	51.0	51.4	51.3
total assets ratio (Note 2)

(Note 1) The amount is rounded down to the nearest unit shown in each column, and the ratio is rounded to the first decimal place.

(Note 2) The indicators are calculated using the formulas shown below. Annualized figures based on the number of days under management are shown in parentheses.

Ratio of ordinary income to total assets	Ordinary income / {(Total assets at the beginning of the period + Total assets at the end of the period) / 2} × 100
Return on equity (ROE)	Net income / {(net assets at the beginning of the period + net assets at the end of the period) / 2} × 100
Rental NOI	Rental revenues - property-related expenses + depreciation
FFO per unit	FFO (= net income - gain from negative goodwill+ depreciation + amortization - gain or loss on disposition of
real estate + impairment loss) / number of investment units issued at the end of the period

Occupancy rate trends (rental housing only)

100%			98.04	98.00	98.32	98.29	98.29	98.57	98.74	98.91	98.68
97.95	97.45	97.82

95%

Apr. 2022

May

Jun.

Jul.

Aug.

Sep.

Oct.

Nov.

Dec.

Jan. 2023

Feb.

Mar.

Occupancy rate (rental housing)

*The occupancy rate for healthcare facilities is 100% due to long-termfixed-rent agreements.

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FFO multiple	Investment unit price at the end of the period / annualized FFO per unit
	(Net income before interest, depreciation and amortization- gain from negative goodwill - gain or loss on
Debt service coverage ratio	disposition of real estate +impairment loss) / interest expenses (including interest on investment corporation
	bonds)
Period-endinterest-bearing debt to	Interest-bearing debt at the end of the period / total assets at the end of the period × 100
period-end total assets ratio

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Ⅱ. Asset Management Report

2. Progress of Asset Management in the Period under Review

1. Profile of the Investment Corporation
   The Investment Corporation was established on October 7, 2005, based on the provisions of the Act on Investment Trusts and Investment Corporations (Act No. 198 of 1951, as amended), and listed as a "housing-specific REIT" on the Tokyo Stock Exchange Real Estate Investment Trust market (stock code: 8986) on June 22, 2006. The Investment Corporation merged with Prospect Reit Investment Corporation in an absorption-type merger on July 1, 2010, and since then it has been seeking to steadily enhance distributions primarily by improving the quality of its portfolio through the replacement of properties (acquiring new properties and disposing of existing properties), strengthening overall operations by improving occupancy rates and other factors, and reducing costs by decreasing expenses for interest-bearing debt and other items. Furthermore, as a result of an absorption-type merger (hereinafter the "Merger") whereby the Investment Corporation is the surviving corporation and Nippon Healthcare Investment Corporation (hereinafter "NHI") is the absorbed corporation on April 1, 2020, upon which the trade name was changed from "Japan Rental Housing Investments Inc." to "Daiwa Securities Living Investment Corporation" and healthcare facilities added to the portfolio, the Investment Corporation is now managed as a "REIT that comprehensively provides comfortable living spaces that 'support life and lifestyle of everyone' suited to each life stage."
   The properties under management at the end of March 2023 consisted of 248 properties with a total acquisition price of ¥363,237 million and a total rentable floor area of 766,035.49 square meters.
2. Investment Environment
   During the fiscal period under review, Japanese economy showed positive signs as various regulations to prevent the spread of COVID-19 were eased and the underlying tone in the March 2023 Consumer Confidence Survey was revised upward to "showing signs of recovery" from "showing signs of weakness" in the previous month. On the other hand, there were times when market volatility increased due to monetary policies of various countries, such as concerns over prolonged monetary tightening in Europe and the U.S., and the expansion of the fluctuation range for the long- term interest rate at the Bank of Japan's monetary policy meeting in December 2022.
   Amid such, rental residential properties owned by listed residential REITs enjoyed a relatively stable management environment as seen in their maintenance of stable occupancy rates when compared with other sectors. On the other hand, in the real estate investment market, with investor interest in the stable cash flows of rental residential properties staying robust and the continued low-interest- rate environment in Japan, competition for property acquisition by domestic and foreign investors continues to be severe. Furthermore, for healthcare facilities, social demand for private nursing homes and other facilities for the elderly is increasing year by year as the proportion of the elderly in the total population increases.
3. Management Performance
   To enhance investment unit value, focus was placed on a. External growth through the acquisition of new properties; b. Continuing to strengthen overall operations; c. Strengthening of financing; and d. Sustainability initiatives.

a. External growth through acquisition of new properties

In the fiscal period under review, the Investment Corporation acquired seven rental housing (total acquisition price: ¥11,258 million) and one healthcare facility (acquisition price: ¥6,280 million), totaling eight properties (total acquisition price: ¥17,538 million) amid increasingly intensified competition for property acquisition. These properties contributed to the revenues of the Investment Corporation in the fiscal period under review and are expected to make a contribution toward expanding revenues in the next fiscal period onward.

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				Acquisition price
Property name		Property type	Acquisition date	(thousand yen)
				(Note)
Gran Casa Minamisenju			October 4, 2022	1,159,000
Gran Casa Hikifune			October 4, 2022	2,760,000
Serenite Namba Plie			October 4, 2022	2,739,200
Gran Casa Oji		Rental housing	October 4, 2022	1,150,000
Gran Casa Ryogoku East			October 4, 2022	1,120,000
Gran Casa Tabata			October 4, 2022	825,000
Gran Casa Kuramae			March 6, 2023	1,505,000
	Rental housing total		11,258,200
Sunny Life Shibaura		Healthcare facilities	October 4, 2022	6,280,000
	Healthcare facilities total		6,280,000
	Total		17,538,200

(Note)	Acquisition price does not include acquisition expenses, adjustments to property tax and city planning tax, and consumption tax
	and local consumption tax.

1. Continuing to strengthen overall operations i. Strategy for managing rental housing

As a result of use of the Daily Occupancy Forecasting System and the continued focus on a range of existing initiatives and other measures by Daiwa Real Estate Asset Management Co., Ltd., the asset management company of the Investment Corporation (hereinafter the "Asset Manager"), the average occupancy rate during the period stood at 98.6% (97.9% in the previous fiscal period). In addition, as a result of continuing to focus on also increasing the rent at the time of replacement (Note), an increase in rent from the previous rent was achieved for 850 out of 1,268 contracts (the total number of new contracts) in the fiscal period under review. The percentage of contracts with higher rent (based on the number of contracts) was 67.0%. The percentage of change in rent at tenant turnover (based on rent) rose by 1.9% (an increase of 1.5% in the previous fiscal period), continuing an upward trend and contributing to higher revenues as in the previous fiscal period.

As for expenses related to leasing business, the Asset Manager focused on a range of existing initiatives, including the reduction of repair expenses and expenses for work to restore properties to their original state through the High-Cost Construction Approval Committee.

In the fiscal period under review, in consideration of the trend in the rental market with shifting to post-pandemic lifestyles due to changes in economic conditions, campaigns to conclude contracts and revision of terms and conditions of contracts were carried out, resulting in occupancy rates improving from the previous period.

(Note) The rent at the time of replacement is calculated by excluding properties for which the previous rent is unknown due to newly acquired properties and the cancellation of the sublease contract and rooms for rent whose use is other than as a residence.

(Existing initiatives)

• Utilizing the "Daily Occupancy Forecasting System" (an IT system independently self-developed by the Asset Manager that predicts occupancy rates at the end of every month on a daily basis; introduced in October 2011) to understand dynamic information regarding individual vacancies, and shorten the cycle for identifying individual vacancies, conducting onsite inspections, investigating causes, taking action, and verifying effects. With the commencement of the operation of the IT system that was upgraded to a new version in May 2015, a mechanism that is able to ascertain various types of information including occupancy rates on the Internet in real time has been set in place.
• Fully enforcing the "Three-week Rule" (a rule to fully restore properties to their original state within three weeks of tenants vacating; introduced in October 2010) to minimize opportunity losses.

●"Downtime 60 Days" (a policy to conclude a new contract within 60 days of tenants vacating; introduced in October 2012).

• "Action 30 Days" (focused response to achieve the best rent at the earliest in the first 30 days after beginning to seek tenants; focused response to vacancies of 30 days after beginning to seek tenants,

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Ⅱ. Asset Management Report

which was introduced in October 2013, has been changed to a more aggressive initiative based on the "Management Policy by Property" newly introduced in April 2016) to further improve occupancy rates and profitability by shortening vacancy periods.

• Taking stronger action on "Key Focus Properties (introduced in April 2011)" and "Long-term Vacancies" (vacancies over 60 days; introduced in October 2010)
• " High-Cost Construction Approval Committee" (a committee conducting a detailed, systematic examination of the content and amount of construction work for ¥1 million or more when orders are placed; introduced in April 2012) to optimize expenses for high-priced construction work.
• Formulation of "Standard Specifications for Work to Restore Properties to their Original State" (setting unique construction specifications for work to restore properties to their original state after tenants vacate, regarding it as a recommercialization measure; introduced in April 2012) to build better rooms and improve management of expenses and construction schedules.
• " Management to Increase the Number of Properties with Full Occupancy" (further improving occupancy rates through the management of the number of properties with full occupancy; introduced in April 2014).
• "Management Policy by Property" (a policy of managing properties by drafting a basic policy for each property based on an analysis of past contract data (rent, downtime, comparison with the previous rent, key money, etc.) of each property and focusing on increasing revenue by simultaneously raising rents and shortening the downtime for each room newly contracted after cancellation through implementation in conjunction with "Action 30 Days," one of the existing initiatives above; introduced in April 2016).

ii. Strategy for managing healthcare facilities

In order for healthcare facilities to earn stable revenue and serve to maintain and enhance unitholder value, the Asset Manager monitors operators as it regards the creditworthiness, operational capabilities, etc. of the operators operating the facilities as important factors in realizing stable occupancy. In the fiscal period under review, while monitoring the impact of COVID-19, interviews and such were conducted by visiting facilities and in the form of meetings with facility managers and head office staff using an online conferencing system. COVID-19 has had no impact on the performance of the Investment Corporation as of the end of the fiscal period under review. In addition, there are no changes to the terms and conditions of contracts, such as mid-term cancellation of lease agreements with operators, rent reduction/exemption and postponement of payment.

As a result of the above, the average occupancy rate of healthcare facilities during the period was 100.0%.

c. Strengthening of financing

In the fiscal period under review, the Investment Corporation conducted the following issuance of new investment units and borrowing of funds to fund the acquisition of new properties and repayment of borrowings.

• The Investment Corporation conducted issuance of new investment units (payment date: October 3, 2022, number of investment units issued: 53,333 units, issue price: ¥114,387, total issue value: ¥5,900 million), and used as part of funds for acquisition of the properties acquired on October 4, 2022.
• On October 4, 2022, the Investment Corporation borrowed a total of ¥6,450 million as part of the funds for acquisition of the properties acquired on the same day.
• The Investment Corporation conducted issuance of new investment units through third-party allotment (payment date: October 19, 2022, total issue value: ¥295 million), and reserved as cash on hand.
• On October 31, 2022, the Investment Corporation refinanced ¥2,400 million of the bank borrowings from existing transaction banks as the funds for repayment of the same amount in total for long-term borrowings due on the same day.
• On December 30, 2022, the Investment Corporation refinanced ¥2,000 million of the bank

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borrowings from existing transaction banks as the funds for repayment of the same amount in total for long-term borrowings due on the same day.

• On March 31, 2023, the Investment Corporation refinanced ¥5,000 million of the bank borrowings from existing transaction banks as the funds for repayment of the same amount in total for long-term borrowings due on the same day.

As a result of the above, the Investment Corporation achieved extension of borrowing periods, in addition to diversification of due dates. Furthermore, the ratio of interest-bearing debt to total assets at the end of the fiscal period under review came to 51.3%, the ratio of long-term interest- bearing debt (excluding interest-bearing debt to be repaid within a year) came to 89.1%, and the ratio of fixed interest rates came to 69.1% on a contract basis.

d. Sustainability initiatives

Based on the recognition that the emphasis on environmental, social and corporate governance practices (collectively called "ESG") in asset management contributes to the improvement of corporate value over the medium to long term, the Investment Corporation has promoted sustainability initiatives based on the sustainability policy established by the Asset Manager.

As for its environmental initiatives, the Investment Corporation is working to reduce the environmental impact of its portfolio through energy conservation and greenhouse gas emissions reduction by installing LEDs and other equipment with high energy-saving performance, as well as effective utilization of limited resources such as water conservation. Furthermore, a total of 21 properties owned by the Investment Corporation as of the date of submission of this document have obtained environmental certification (Note 1), and the ratio of certification is 15.74% (based on the total floor area of the entire portfolio).

Regarding social initiatives, the Investment Corporation is making efforts to improve tenant satisfaction and contribute to the sustainable development of local communities by building good relationships with external stakeholders related to its real estate held to collaborate with them. In order to further promote supply of excellent healthcare facilities in Japan, as of the date of submission of this document, the Investment Corporation borrowed through social loans (¥9,920 million) and issued social bonds (¥2,000 million) based on the Social Finance Framework formulated in May 2021.

As part of our governance initiatives, the Asset Manager ensures prevention of conflicts of interest, management of risks, and compliance with laws and regulations, and has introduced an asset management fee system linked to the results of management, emphasizing the linkage with unitholder interests.

The Investment Corporation has been continuously participating in GRESB Real Estate Assessment since 2018, and received the "Green Star" assessment given to participants with excellent scores in the "Management Component" assessing policies and organizational structures for ESG promotion and the "Performance Component" assessing environmental performance and initiatives with tenants in properties owned in the 2022 GRESB Real Estate Assessment. It also received two stars in the five-level GRESB rating based on the global ranking of overall scores. Furthermore, the Investment Corporation received the highest rank of "A" in the five-level rating in the 2022 GRESB disclosure assessment measuring the level of ESG disclosure in recognition of its excellent disclosure related to environmental consideration and sustainability initiatives.

The Asset Manager formulated a "Climate Change Resilience Policy" in December 2021 and expressed support for the TCFD (Task Force on Climate-related Financial Disclosures) (Note 2) recommendations to promote clarification of the policy on initiatives to address climate-related issues and the enhancement of disclosure of the content of such initiatives. Furthermore, in January 2022, the Asset Manager joined the TCFD Consortium, an organization formed by companies in Japan expressing support for the recommendations.

Based on the four items whose information disclosure is recommended in the TCFD recommendations (governance, strategy, risk management, and indicators and targets), a qualitative scenario analysis of business risks and opportunities caused by the response to climate change was conducted and disclosed on the Investment Corporation's website from March 2023.

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Ⅱ. Asset Management Report

(Note 1) The environmental certifications which the properties owned by the Investment Corporation have acquired include CASBEE for Real Estate Certification, DBJ Green Building Certification, BELS Certification.

(Note 2) TCFD (Task Force on Climate-related Financial Disclosures) is an international initiative established by the Financial Stability Board (FSB) at the request of the G20 regarding how climate-related information should be disclosed and addressed by financial institutions.

1. Summary of Results and Distributions
   As a result of the management initiatives described above, the Investment Corporation recorded operating revenue of ¥11,898 million, operating profit of ¥5,571 million, ordinary profit of ¥4,829 million and profit of ¥4,828 million.
   As for distributions, the Investment Corporation will distribute the amount of unappropriated retained earnings after adding reversal of reserve for temporary difference adjustments of ¥145 million according to the existing policy.
   As a result, total distributions came to ¥4,973 million in the fiscal period under review, and the

distribution per unit was ¥2,200 (up ¥20 from the previous fiscal period).

(Note) With respect to distributions, based on the plan that the maximum amount of distribution of earnings shall be included in deductible expenses upon the application of Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of 1957, including amendments thereto; hereinafter the "Special Taxation Measures Act"), the full amount of unappropriated retained earnings except for fractions of less than one (1) yen of cash distribution per investment unit will be distributed.

3. Capital

The table below shows the changes in the total number of investment units issued and outstanding and unitholders' capital in the five years up to the end of the fiscal period under review.

		Total number of investment	Unitholders' capital
		units issued and outstanding
		(Thousand yen)
Date	Description	(units)		Notes
		Change		Total	Change	Total
April 1, 2020	Merger	152,995		1,793,055	－	91,715,714	(Note 1)
	Capital increase
April 1, 2020	through third-	262,891		2,055,946	25,999,919	117,715,634	(Note 2)
	party allotment
December 4,	Capital increase
through public	72,000		2,127,946	6,090,192	123,805,826	(Note 3)
2020
offering
December 25,	Capital increase						(Note 4)
through third-	3,600		2,131,546	304,509	124,110,336
2020
party allotment
	Capital increase
October 1, 2021	through public	70,476		2,202,022	7,745,030	131,855,366	(Note 5)
	offering
	Capital increase
October 20, 2021	through third-	2,868		2,204,890	315,181	132,170,548	(Note 6)
	party allotment
	Capital increase
October 3, 2022	through public	53,333		2,258,223	5,900,336	138,070,884	(Note 7)
	offering
	Capital increase
October 19, 2022	through third-	2,667		2,260,890	295,055	138,365,940	(Note 8)
	party allotment

(Note 1) The Investment Corporation executed an absorption-type merger whereby the Investment Corporation is the surviving corporation and NHI is the absorbed corporation based on Article 147 of the Act on Investment Trusts and Investment Corporations. Upon the merger,

2.05 investment units of the Investment Corporation were allotted and delivered per investment unit of NHI to all investment units of NHI. The number of investment units issued and outstanding of NHI at the time of the merger was 74,632 units.

(Note 2) The Investment Corporation issued new investment units through third-party allotment at an offer price of ¥98,900 per unit for the purpose of acquiring new properties.

(Note 3) The Investment Corporation issued new investment units through public offering at an issue price of ¥87,457 (issue value of ¥84,586) per unit for the purpose of acquiring new properties.

(Note 4) The Investment Corporation issued new investment units through third-party allotment at an offer price of ¥84,586 per unit for the purpose of acquiring new properties.

(Note 5) The Investment Corporation issued new investment units through public offering at an issue price of ¥113,626 (issue value of ¥109,896) per unit for the purpose of acquiring new properties.

(Note 6) The Investment Corporation issued new investment units through third-party allocation at an issue value of ¥109,896 per unit for the purpose of repaying part of borrowings and partly using to acquire specified assets in the future.

(Note 7) The Investment Corporation issued new investment units through public offering at an issue price of ¥114,387 (issue value of ¥110,632) per unit for the purpose of acquiring new properties.

(Note 8) The Investment Corporation issued new investment units through third-party allocation at an issue value of ¥110,632 per unit for the purpose of repaying part of borrowings and partly using to acquire specified assets in the future.

Changes in Price at the Stock Exchange

The table below shows the highest and lowest prices (closing prices) at the Tokyo Stock Exchange REIT market, where the Investment Corporation lists investment units, for each period.

Period	30th period	31st period	32nd period	33rd period	34th period
Closing month	March 2021	September 2021	March 2022	September 2022	March 2023
High (yen)	¥110,900	¥126,900	¥119,700	¥126,600	¥119,800
Low (yen)	¥89,400	¥107,900	¥103,900	¥111,400	¥106,900
Price at the beginning of	¥108,800	¥107,900	¥109,000	¥113,900	¥115,500
the period (yen)
Price at the end of the	¥108,600	¥111,800	¥115,100	¥114,800	¥108,900
period (yen)
(Note) The prices at the beginning of the period are the closing prices of the first day of each period.

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