Starts Proceed Investment : Financial Results Briefing 32nd Fiscal Period

Starts Proceed Investment Corporation (securities code: 8979)

Financial Results Briefing

32nd Fiscal Period (six months ended October 31, 2021)

December 15, 2021

(Asset Management Company) Starts Asset Management Co., Ltd.

MEMO

Contents

32nd Fiscal Period Financial Results Summary

32nd Fiscal Period Financial Results Highlights	4
Impact of COVID-19	5
32nd Fiscal Period Financial Results	7
Management Forecast	8
Current Issues and Future Initiatives Aimed at Enhancing Unitholder	9
Value
Change in Investment Unit Price Since Sixth Public Offering	10
(Implemented in November 2016)
Asset Replacement Results and Future Asset Replacement Policy	11
Acquisition of Proceed Shinkawa	12
Effect of Property Replacement	13
Stable Occupancy Rates and Background	14
Building a Portfolio That Responds to Various Fluctuation Risks	15
Status of Leasing Conditions of AUM	16
AUM Average Occupancy Period by Residential Unit Type	17
(Results of 27th-32nd Fiscal Period-End Residents)
Acquisition Price and Appraisal Value of AUM	18
Change in LTV	19
Overview of Investment Corporation Bonds and Financial Status	20
Status of Interest-Bearing Liabilities /	21
After Refinancing (November 24, 2021)
Initiatives on Sustainability	22
Status of Unitholders (As of October 31, 2021)	25

Future Management Policy

Major Initiatives in 32nd Fiscal Period and Management Policy from	27
33rd Fiscal Period
Change in Distribution	28
Collaborative Structure of Starts Group	29
Properties in Process of Warehousing	30
Development Projects of Starts Group	32
Case Example of Development by Starts Group	33
Case Example of Ongoing Projects by Starts Group	43
Case Example of Efforts by Management Company	44

Reference Materials

Balance Sheet	46
Statements of Income/Cash Distributions	47
Status of Interest-Bearing Liabilities (As of October 31, 2021)	48
Portfolio Map (As of October 31, 2021)	52
Portfolio Policy and Period-end Status	53
Portfolio List (As of October 31, 2021)	54

Management Company Overview

Starts Asset Management Co., Ltd.	58
Disclaimer	60

STARTS PROCEED INVESTMENT CORPORATION

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32nd Fiscal Period

Financial Results Summary

32nd Fiscal Period Financial Results Highlights

	Distribution forecast at		Finalized	Results for the
	beginning of 32nd fiscal		Previous Fiscal	4,663 yen
		distribution
	period		Period
Distribution/	4,500 yen	+63 yen	4,563 yen	Comparison with	-100 yen
Unit	31st fiscal period	-2.1%

• Management Summary

		 Disposed Proceed Motoyawata (Ichikawa-shi, Chiba, 17.5 years old, acquired in
External	Obtain unrealized gain through		February 2007)
	Disposition price: 336 million yen
asset replacement
Growth		Gain on sale: 61 million yen
Aim to improve portfolio quality
		Acquired Proceed Shinkawa (Chuo-ku, Tokyo, 11.9 years old)
			Acquisition price: 500 million yen
		 Period average occupancy rate: 95.8%
		 Maintained an occupancy rate of 95% or more for the thirtieth consecutive fiscal period
Internal	Continue stable asset		from the 3rd fiscal period
	The period average occupancy rate was up 0.2 percentage points year on year, but
Growth	management
	occupancy has not fully recovered due to the continuous impact of COVID-19 in the
			Narita area, etc.
		 The rate of change in rent upon new replacements increased slightly by 1.0%
		 Reduced procurement costs by issuing the Third Series Unsecured Investment
			Corporation Bond (Green Bonds) in November
Financial		 Total asset LTV	End of 31st FP 50.6%→ After the refinancing this time (Note 1)
Maintain sound finances			50.6% (± 0.0)
Status		Appraised LTV	End of 31st FP 45.1%→ After the refinancing this time (Note 2)
				45.1% (± 0.0)
		 Ratio of fixed-rate loans	End of 31st FP 37.8%→ After the refinancing this time
				47.3% (+ 9.5 percentage points)

(Note 1) After-refinancing total asset LTV = Balance of interest-bearing liabilities on the refinancing date (November 24, 2021) ÷ (Total assets at the end of the 31st fiscal period as recorded on the balance sheet + Amount of interest-bearing liabilities procured in the 32nd fiscal period - Amount of interest-bearing liabilities repaid in the 32nd fiscal period).

(Note 2) After-refinancing appraised LTV = Balance of interest-bearing liabilities on the refinancing date (November 24, 2021) ÷ (Total appraisal value at the end of the 31st fiscal period + Amount of interest-bearing liabilities procured in the 32nd fiscal period - Amount of interest-bearing liabilities repaid in the 32nd fiscal period).

(Note 3) All amounts are rounded down, and the figures with decimal places calculated for percentage or averaged are rounded off.

STARTS PROCEED INVESTMENT CORPORATION

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