2Nd Fiscal Periods 31 2

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2Nd Fiscal Periods 31 2 Securities code:3295 Financial Results Briefing for the Fiscal Period Ended February 28, 2015 (2nd Fiscal Period) April 15, 2015 Table of Contents 1 I. Financial Highlights V. Appendix 1. Financial Highlights 3 1. Statements of Income for the 1st and 2nd Fiscal Periods 31 2. Balance Sheets for the 1st and 2nd Fiscal Periods 32 II. Asset Management Results for the Fiscal 3. Portfolio Properties (Office Properties) Acquired during the 2nd Period Ended February 28, 2015 (2nd Fiscal Period 33 Fiscal Period) 4. Portfolio Properties (Retail Properties) Acquired during the 2nd 1. Portfolio Summary 5 Fiscal Period 36 2. Results of External Growth 7 5. Portfolio Properties (Private Nursing Homes) Acquired during 3. Results of Internal Growth 9 the 2nd Fiscal Period 38 4. Financial Condition 11 6. Portfolio Properties (Network Centers) Acquired during the 2nd Fiscal Period 39 III. Summary of Financial Results for the 7. Status of Appraisal Value by Property as of February 28, 2015 Fiscal Period Ended February 28, 2015 (2nd Fiscal Period) 41 (2nd Fiscal Period) 8. List of Appraisal Value by Property as of February 28, 2015 1. Statements of Income 13 (2nd Fiscal Period) 42 2. Balance Sheets 15 9. Lease Business Income and Expenditures by Property for the 3. Overview of the Appraisal Report 16 Fiscal Period Ended February 28, 2015 (2nd Fiscal Period) 43 10. Main Tenants as of February 28, 2015 (2nd Fiscal Period) 45 IV. Future Strategy and Earnings Forecast 11. Breakdown of Unitholders as of February 28, 2015 (2nd Fiscal 1. Strategy Framework 18 Period) 46 2. External Growth Strategy 19 12. Hulic Reit’s Basic Missions and Portfolio Building Policy 47 3. Properties Acquired (Planned) at the Beginning of the 13. Focused Investment in Tokyo Commercial Properties 48 3rd Fiscal Period 23 14. Investments in Next Generation Assets 49 4. Internal Growth Strategy 24 15. Collaboration with the Hulic Group 50 5. Earnings Forecast for the Period Ending August 2015 16. Operating Structure that Ensures Investor Returns 51 (3rd Fiscal Period) and Beyond 26 17. Structure of Hulic Reit 52 6. Steady Growth in Cash Distribution per Unit 27 2 I. Financial Highlights 1. Financial Highlights 3 1 External Growth Assets under management increased from 21 properties valued at ¥101.4 billion to 31 properties valued at ¥156.2 billion*1 (1) In October 2014, Hulic Reit conducted its first public offering after the IPO and acquired an additional seven properties valued at ¥46.7 billion using the proceeds (2) At the start of the Third Fiscal Period, an additional three properties valued at ¥8.0 billion will be acquired Realize external growth At IPO Public offering End of 2nd fiscal period At time of financial results announcement*1 that helps enhance the quality and profitability of ¥101.4 billion +¥46.7 billion ¥148.2 billion ¥156.2 billion our portfolio 2 Internal Growth The Hulic Higashi Ueno 1 Chome Building had a low occupancy rate, but we were able to quickly increase the building’s occupancy rate to 100%, minimizing vacant time. Accumulate steady results Secured a 99.0% occupancy rate by working with the corporate group of our sponsor to re‐lease space that was vacated by tenants. in internal growth Lease renewals for the Second Fiscal Period included three lease increases and no reductions. 3 Financial Strategy Carefully controlled LTV with the goal of enhancing unitholder value (maintained at between 40% and 45%) At IPO Public offering End of 2nd fiscal period At time of financial results Took out borrowings of ¥35.4 billion to Continue stable and sound announcement*2 fund the acquisition of properties financial management 34.3% 30.3% 38.5% 41.3% Reduced average interest rate and extended debt maturities using fixed rates 4 Enhancing Unitholder Value Increased cash distribution per unit (DPU) and net asset value (NAV) (per unit) 1st fiscal 2nd fiscal period 2nd fiscal 3rd fiscal period 3rd fiscal period results estimate period results initial estimate period estimate Enhance unitholder value Cash distribution per unit ¥2,383 ¥2,800 ¥2,926 ¥2,705 ¥2,830 (+¥125 compared (+¥126 vs. forecast) to initial forecast) through portfolio growth and financial 1st fiscal 2nd fiscal period Change vs. 1st period results results fiscal period management Net asset value (per unit) ¥115,107 ¥123,939 +7.7% 5 Initiatives Aimed at Future Growth With external growth at the heart of our initiatives, we will seek to achieve stable growth of cash distributions while working to maintain a high occupancy rate and current lease levels (1) Increase assets under management by ¥50 to ¥70 billion per annum (reaching ¥300 billion in assets under management within three to five years of the IPO. (2) Maintain current yield in office properties by combining *3 properties with a prime location and properties located within Tokyo’s 23 wards *1. Includes the three properties that are planned to be acquired at the start of the Third Fiscal Period. *2. The combined total of interest-bearing debt for the Second Fiscal Period and the borrowings for the three properties acquired at the beginning of the Third Fiscal Period has been divided by the total acquisition cost of the three properties acquired at the start of the Third Fiscal Period and net asset value at the end of the Second Fiscal Period. *3. Please refer to page 20 of this presentation for definitions of these terms. 4 II. Asset Management Results for the Fiscal Period Ended February 28, 2015 (2nd Fiscal Period) 1. Portfolio Summary 5 1 Realizing Steady and Consistent External Growth The value of assets under management increased to ¥156.2 billion as a result of properties acquired after the first public offering after the IPO and properties (planned) to be acquired at the start of the Third Fiscal Period*1 (+¥54.7 billion vs. IPO; approx. increase of 1.5 times) At time of financial End of 1st Fiscal Assets acquired after End of 2nd Fiscal Assets (planned to results be) acquired at the announcement for Period public offering Period start of the 3rd Fiscal the 2nd Fiscal Period Period*1 Overall 21 properties 7 properties 28 properties 3 properties 31 properties properties Tokyo commercial properties properties properties properties 12 4 16 properties 3 19 properties of No. Next generation assets 9 properties 3 properties 12 properties 12 properties Average NOI yield 5.1% 4.5% 4.9% 4.8% 4.9% Average NOI yield after depreciation 4.5% 3.6% 4.2% 4.2% 4.2% Overall ¥101.4 bn ¥46.7 bn ¥148.2 bn ¥8.0 bn ¥156.2 bn assets Tokyo commercial properties % 77.7% 76.9% 77.5% 100.0 78.6% Total Next generation assets 22.3% 23.1% 22.5% 21.4% Acquired assets At time of (planned) Forecast for April 30, (Aug. 31, 2014) acquisition 2015 Occupancy rate 99.1% 98.0% 99.0% 100.0% 99.1% *1. Includes the three properties (planned) to be acquired at the start of the Third Fiscal Period. 1. Portfolio Summary 6 2 Further Strengthening of the Portfolio Making progress with short distance to the nearest station, a strength of Tokyo commercial properties, and long‐term lease periods, a strength of next generation assets End of First Fiscal Period End of Second Fiscal Period Less than one minute Tokyo commercial walk to station properties Less than +2.1% Less than (By number of 1 minute 1 minute minutes’ walk from 85.7% 87.8% the nearest station) 15 to 20 years +1.6% More than 20 years +0.5% Next generation assets (By term of lease) Tokyo commercial Next generation Network centers properties Maintain ratio of 80% Tokyo assets 12.9% 77.5% commercial properties and 20% 22.5% next generation assets Private nursing homes Overall 9.6% Office properties 55.9% (By asset class) Retail properties 21.5% 2. Results of External Growth 7 1 Properties Acquired with the Proceeds of the Public Offering (Second Fiscal Period) Acquired Ochanomizu Sola City, a Class S building in which our sponsor was involved with the development Acquired the Hulic Higashi Ueno 1 Chome Building, sourced from our asset management company Tokyo commercial properties Next generation assets Office properties Retail properties Network centers Hulic Higashi Ueno 1 Hulic Shinjuku 3 Yokohama Sapporo Network Keihanna Network Name Ochanomizu Sola City Chiba Network Center Chome Building Chome Building Yamashitacho Building Center Center Photograph of property Yokohama City, Location Chiyoda Ward, Tokyo Taito Ward, Tokyo Shinjuku Ward, Tokyo Inzai City, Chiba Sapporo City, Hokkaido Kizugawa City, Kyoto Kanagawa Shin-okachimachi Shinjuku-sanchome Motomachi-Chukagai Shin-Ochanomizu Station on the Toei Station on the Tokyo Station on the Walking distance Station on the Tokyo Oedo Subway Line and Metro Marunouchi Line Yokohama Kosoku from the nearest Metro Chiyoda Line, --- the and Tetsudo station Tokyo Metro (0-minute Tsukuba Express Line Fukutoshin Line Minato Mirai Line walk) (2-minute walk) (1-minute walk) (1-minute walk) Acquisition date November 7, 2014 October 16, 2014 October 16, 2014 October 16, 2014 December 16, 2014 December 16, 2014 October 16, 2014 Acquisition price ¥22,854 million ¥2,670 million ¥5,550 million ¥4,850 million ¥7,060 million ¥2,510 million ¥1,250 million Appraisal value ¥23,010 million ¥2,740 million ¥5,600 million ¥4,860 million ¥7,090 million ¥2,530 million ¥1,260 million Appraisal NOI 3.9% 4.9% 4.1% 5.3% 5.4% 5.5% 5.8% yield Floors B2/23F 8F B1/7F B2/7F B2/8F 5F 3F 8,341.22 m2 Total leasable (equivalent to 13% of 3,262.08 m2 1,351.15 m2 8,958.70 m2 23,338.00 m2 9,793.57 m2 9,273.44 m2 area the ownership interest) Occupancy rate*1 91.4% 100.0% 100.0% 100.0% 100.0% 100.0% 100.0% *1.
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