Comfort Urban Smart

COMFORIA RESIDENTIAL REIT, INC ~Investor Presentation~ COMFORT 8th Fiscal Period (ended July 2014) September 2014 URBAN

SMART Table of Contents

1. 8th Fiscal Period Highlights 5. Appendix  Financial Highlights - 4 –  P&L: 8th Period -23-  Portfolio Highlights - 5 -  Balance Sheet: 8th Period -24- 2. 8th Fiscal Period Results  8th ~ 9th Period Performance Forecast -25-  Financial Results for the 8th Fiscal Period - 7 -  CRR Characteristics -26-  Stable Occupancy Rate - 8 -  “COMFORIA” Series -27-  Fluctuations in Rent Rate - 9 -  “COMFORIA” Series Representative Properties -28-  External Growth-①: PO Effect & Acquisition  Portfolio Policy -29- Capacity -10-  # of Net migration and Household in Tokyo 23 Wards -30-  External Growth-②: Post-offering Acquisitions -11-  Demand & Price Stability of Tokyo 23 Ward Assets -31-  Property Management Initiatives -12-  Portfolio Map (as at 8th FP end) -32-  Financial Strategy-①: Borrowings & Bond Issue -13-  Portfolio List -33-  Financial Strategy-②: Financial Indicators  Appraisal Value -36- (as at 8th FP end) -14-  Occupancy and Rent Rates -39-  Expansion of Retail Investor Base -15-  Overview of Portfolio (as at 8th FP end) -40- 3. Future Strategy  Status of Interest-bearing Debt (as at 8th FP end) -42-  External Growth Targets -17-  Unitholders (as at 8th FP end) -43-  Solid External Growth-①: Historical Performance -18-  Historical Unit Price -44- rd  Solid External Growth-②: Opportunities  Agenda of the 3 Unitholders’ Meeting -45- & Pipeline -19-  Governance -46- 4. Performance Forecast  Overview of CRR -47-  Overview of Asset Management Company -48-  Performance Forecast -21-

2 1. 8th Fiscal Period Highlights

3 Financial Highlights

 Higher unitholder value attributed to substantial portfolio growth

Portfolio growth Rising DPU for 2 consecutive periods (yen) Increased DPU  Investment targets: primarily properties in the Tokyo 23 Wards 17,074 16,813

1.6 fold asset Tokyo 23 Wards 16,205 growth 92.5%

(yen) 116.2bn 6th Period 7th Period 8th Period 93.3% Acquisition Rising NAV/unit* for 2 consecutive periods price (yen) 74.5bn 1.6x Increased NAV 685,733 80 assets 625,528 55 assets 603,192

7th Period end th 8 Period end 6th Period end 7th Period end 8th Period end

 NOI yield (appraisal basis)*  Total LTV* 5.78% 5.60% 52.7% 54.4% 51.6%

(Note) Refer to “References (*1) and “References (*3) for calculation method of “NOI yield (appraisal basis)”, “NAV/unit” and “Total LTV”. Hereinafter, it is same in this document.

4 Portfolio Highlights

 Leveraged sponsor(TLC – Tokyu Land Corporation) group’s support to build up a portfolio comprising assets located primarily in the Tokyo 23 Wards

Investment area Unit type Building age Nearest train station (on foot)

Other major Under 3 years Tokyo cities Over 10 years 5.0% Metropolitan 4.4% 3 to 5 years 10.7% area 4.2% Over 10 mins Central Tokyo Stores 3.2% Large 1.9% 1.0% 44.8% 11.4%

Family 5 to 10 mins 1.8% 40.4%

Single Avg. distance Tokyo 23 Wards Single / Compact 44.4% Avg. building age Under 5 mins 92.5% 84.9% 7.8 yrs 4.9min 58.6% Sub-central Compact Tokyo 40.5% 47.7%

5 to 10 years 80.0%

Over 90% of assets are located in Tokyo 23 Wards Acquired newer properties developed by TLC

1 On-going influx of “millennials” into the Tokyo 23 Wards

2 Stable rate of rental housing starts in the Tokyo 23 Wards

(Note) Refer to “References (*2) for calculation method of “Investment area”, “Avg. building age”, ”Nearest train COMFORIA COMFORIA COMFORIA station (on foot)” and ”Avg. distance”. AKASAKA ASAKUSABASHI RYOGOKU SOUTH

5 2. 8th Fiscal Period Results

6 Financial Results for the 8th Fiscal Period

 Surpassed initial profit projections through earnings growth and cost reduction measures

Comparable projection (Mar’14) vs. actual results

Profit/loss from Revenue from leasing business Operating income Ordinary income leasing business Current Operating Revenue from Other revenue from Leasing business Interest payable, net income expenses (non- leasing business leasing business expenses etc. leasing business) Projection ¥3,844mn ¥161mn ¥1,546mn ¥377mn ¥410mn ¥1,671mn (Mar’14) 8th Period actual ¥3,827mn ¥189mn ¥1,551mn ¥361mn ¥386mn ¥1,718mn

Differential △ ¥16mn + ¥28mn + ¥4mn △ ¥16mn △ ¥24mn + ¥47mn Occupancy ↓ Key money Leasing fees ↓ Basis for change Mgmt. fees↓ Financing costs↓― Acquisitions ↑ /renewals, etc. ↑ Acquisitions ↑

Property mgmt. REIT mgmt.

Increased revenue from key money Larger profit distribution due to lower Impacts from new and renewal fees, etc. despite a slight than expected management and acquisitions, etc. decrease in occupancy financing costs

+ ¥405

Actual DPU △ ¥45 + ¥114 ¥17,074

Projected DPU (Mar’14) ¥16,600

7 Stable Occupancy Rate

 Occupancy rates are stable and is currently hovering at a level of approximately 95%

6th FP 7th FP 8th FP

100.0% Total portfolio Total portfolio (same month year ago)

95.0%

90.0%

85.0%

100.0% Central Tokyo Sub-central Tokyo Tokyo Metropolitan area Other major cities

95.0%

90.0%

85.0%

6th FP end Aug’13 Sep’13 Oct’13 Nov’13 Dec’13 Jan’14 Feb’14 Mar’14 Apr’14 May’14 Jun’14 Jul’14 Total portfolio 95.9% 95.4% 95.6% 95.8% 95.8% 95.9% 96.2% 95.5% 95.7% 94.7% 94.7% 95.0% 94.8% Central Tokyo 95.2% 94.1% 93.8% 94.6% 95.2% 95.4% 95.7% 95.5% 95.4% 95.2% 95.2% 95.0% 94.5% Sub-central Tokyo 96.5% 96.4% 97.1% 96.8% 96.6% 96.3% 96.3% 95.4% 96.1% 94.5% 94.4% 94.7% 94.7% Tokyo metropolitan area 94.4% 93.3% 93.6% 92.9% 91.1% 94.3% 95.1% 95.9% 94.7% 95.1% 95.5% 98.5% 97.2% Other major cities - - 93.2% 96.1% 96.2% 97.0% 98.1% 97.2% 96.0% 93.0% 93.8% 95.1% 95.9% 4th FP end Aug’12 Sep’12 Oct’12 Nov’12 Dec’12 Jan’13 Feb’13 Mar’13 Apr’13 May’13 Jun’13 Jul’13 Total portfolio 93.1% 93.8% 94.0% 94.3% 94.3% 94.8% 96.1% 95.3% 96.1% 95.2% 94.8% 95.5% 95.9% (same month year ago)

8 Fluctuations in Rent Rate

 On-going recovery of rent rates attributed to higher contracted rent upon retenanting vacant space Historical rent rates (8th FP) Rent fluctuation from retenanting & renewals (5~8th FP)

(yen)  Retenanting (# of contracts basis) # of rate 100% increase # of rate # of rate MoM* (55 assets at beginning of term) 18.5% increase increase # of rate 80% No change 27.0% 28.7% increase + 0.05% + 0.05% + 0.03% △0.09% + 0.10% △0.11% 14.6% No change No change 45.2% 60% 13.8% 15.7% No change # of rate 12.4% 40% # of rate # of rate decrease decrease # of rate Acquired 22 properties 67.0% decrease using proceeds from PO Acquired COMFORIA 20% 59.3% 55.5% decrease NIBANCHO 42.4% Acquired COMFORIA 0% SHINSAKAE & 5th FP 6th FP 7th FP 8th FP KITAHORIE  Lease renewals (# of contracts basis) # of rate 100% increase 0.1% 80%

60% No change No change No change No change 98.4% 98.5% 99.2% 99.6% 40% th Rent (month/tsubo)7end Feb’14 Mar’14 Apr’14 May’14 Jun’14 Jul’14 # of rate # of rate # of rate # of rate 20% Total portfolio(incl. 25 decrease decrease decrease decrease 12,656 12,938 12,833 12,842 12,833 12,858 12,849 interim acquisitions) 1.6% 1.5% 0.8% 0.3% 0% Portfolio at beginning 12,656 12,663 12,669 12,672 12,661 12,674 12,660 5th FP 6th FP 7th FP 8th FP of term (55 assets)

Higher portfolio rent (55 assets at the beginning Net increase in contracted rent rates of the term) versus the previous period of retenanted space

(Note) MoM or “month-over-month” is an asset comparison of the total portfolio after acquisitions against the portfolio at the beginning of the term.

9 External Growth-①: PO Effect & Acquisition Capacity

 Portfolio size expanded 1.5 fold from ¥74.5bn to ¥111.9bn following acquisitions using proceeds from the Feb’14 offering  Simultaneously, LTV declined leading to higher acquisition capacity to perpetuate external growth during the interim

Effects of public offering

Stable portfolio revenue Enhanced portfolio quality

Acquisition Ratio of Tokyo Avg. building nearest train NOI yield Unrealized gain Single/Compact price assets age station (on foot) (appraisal)

Pre-offering (Jan’14) ¥74.563bn ¥9.292bn 93.3% 82.1% 7.5 yrs 5.2 min walk 5.78%

New acquisitions ¥37.392bn ¥1.582bn 97.1% 89.5% 7.0 yrs 4.6 min walk 5.31%

Post-offering (Feb’14) ¥111.955bn ¥10.874bn 94.6% 84.3% 7.4 yrs 5.0 min walk 5.62%

Surplus acquisition capacity PO effect  A drop in total LTV opened up acquisition capacity Ratio of Tokyo 23 Ward assets Total LTV Approx. ¥14bn surplus 60.0% 100.0% Over 90% of capacity (up to LTV 55%) assets are in the Tokyo 23 Wards 55.0% 54.4% 94.6% Ongoing 95.0% basis 93.3% More opportunities for LTV 50.0% 50.1% interim growth

Acquisition capacity of approx. 90.0% 45.0% ¥14bn (up to LTV55%) DPU is expected to surpass on-going basis targets of ¥4,000 per unit over the short-term 40.0% 85.0% Pre‐offering Post‐offering Target

10 External Growth-②: Post-offering Acquisitions

 Continued acquiring assets during the interim by leveraging surplus acquisition capacity achieved from the PO  Adopted a balanced diversified approach by investing in both major regional cities and Tokyo to enhance overall portfolio quality while capturing competitive yields Major regional cities Tokyo 23 Wards Growth driver & strategy

Acquired through asset manager’s proprietary source Acquired from the sponsor’s group Leveraged acquisition COMFORIA SHIN-SAKAE COMFORIA KITAHORIE COMFORIA NIBANCHO 1 capacity (acquired 20-Mar-2014) (acquired 28-Mar-2014) (acquired 30-Jun-2014) Post-offering Up to LTV55% Approx. ¥14bn

As at 8th FP end Up to LTV55% Approx. ¥9.5bn

+ = Balanced approach for 2 acquisitions  Major regional cities For stronger profitability  Bancho area (Tokyo 23 Wards) To enhance portfolio quality Nagoya city Osaka city Tokyo, Chiyoda ward

NOI yield: 5.94% NOI yield: 5.68% NOI yield: 4.84% Profitability

NOI yield of all 3 properties Avg. NOI yield: 5.84% Avg. 5.46%

(Note) Above NOI yield figures are based on appraisal value at the time of acquisition.

11 Property Management Initiatives

 Shown below are initiatives taken to enhance competitiveness of CRR assets and improvement of tenant service while periodically reducing building management fees Property renovation Lowered building management fees

 Currently renovating COMFORIA LIV KOMAE as a measure  Reduced running costs at 4 properties by to keep its competitiveness in the market streamlining building management activities Before After Exterior paintwork Approx. ¥2mn p.a.

Improvement of tenant service

 In light of heightened awareness on disaster readiness, emergency survival kits were Stairwell paintwork installed in elevators to provide a secure environment for tenants

Tile replacement

12 Financial Strategy-①: Borrowings & Bond Issue

 Diversified funding sources by issuing REIT bonds while extending maturity of current debt and fixing interest rates Financing activities for 8th FP 20,000 No change Funding (loans) Funding (bonds) Repayment ①Loans for follow-on offering ②Refinancing, etc. to extend debt maturity 15,000

③Issuing REIT bonds 12,495 10,000 2,900 9,925 1,000 5,500 5,000 6,300 5,500 5,500 6,000 4,650 5,000 3,700 3,000 0 1,000 2,000 1,350 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21th 22th 23th 24th Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period Period

New borrowing and Drawdown Activity Remarks refinancing date ① Feb’14 Loans for follow-on offering - Added 5 new bank syndicates (total 12 banks) Jun’14 Refinancing, etc. to extend - Extended maturity of existing debt ② debt maturity Avg. maturity (refinanced portion): ¥[email protected] yrs → ¥[email protected] yrs (as at Jun’14)

REIT bond issuance Series-1 Unsecured REIT Bonds Issue date 30-Jul-2014 Favorable market environment to diversify funding sources Volume ¥3 billion Attracted strong demand from a broad array of investors ③ Term 7 years First 7-year REIT debt issued since the Lehman Crisis Interest rate 0.64% p.a. Record low interest rate for 7-year REIT debt

13 Financial Strategy-②: Financial Indicators (as at 8th FP end)

Key financial indicators

Avg. maturity & weighted avg. interest Ratio of fixed interest debt to total debt Ratio of long-term debt to total debt

1.5% 4.4 yrs 5.0 yrs 100% 100% 2.3% 16.0% 14.7% 29.5% 29.5% 1.3% 3.5 yrs 4.0 yrs 80% 80% 2.9 yrs 1.1% 2.5 yrs 3.0 yrs 60% 60% 100.0% 100.0% 97.7% 100.0% 0.9% 2.0 yrs 40% 84.0% 40% 85.3% 1.01% 1.00% 1.02% 70.5% 70.5% 0.91% 0.7% 1.0 yrs 20% 20%

0.5% 0.0 yrs 0% 0% IPO 6th FP end 7th FP end 8th FP end IPO 6th FP end 7th FP end 8th FP end IPO 6th FP end 7th FP end 8th FP end Term to maturity Weighted avg. interest Fixed Variable Long‐term Less than 1‐year

Interest-bearing debt status Outstanding debt balance by lender (as at 8th FP end)

th th The Bank ofThe 77 Bank 7 FP 8 FP Fukuoka 500 (million yen) Differential Tokyo Tomin 1,000 The Daishi Bank (Jan’14 end) (Jul’14 end) Bank 500 1,300 The Norinchukin Bank Interest-bearing 1,500 ¥43.72bn ¥64.92bn + ¥21.20bn Mitsubishi UFJ debt balance Mizuho Trust & Trust and Banking Sumitomo Mitsui Banking 2,000 Banking 11,590 Avg. maturity 3.5 yrs 4.4 yrs + 0.9 yrs Corporation 4,735

Weighted avg. The Bank of 1.02% 0.91% ▲ 0.11 pt T okyo-Mi ts ubi s hi Sumitomo Mitsui interest rate UFJ Trust Bank 9,590 10,025 Total LTV 54.4% 51.6% ▲ 2.8 pt

Mizuho Bank Development Appraisal LTV 52.1% 49.8% ▲ 2.3 pt 9,590 Bank of Japan 9,590

(Note) Refer to “References (*3)” for calculation method of “Interest-bearing debt status”.

14 Expansion of Retail Investor Base

 In order to further expand the retail investor base, CRR held active discussions through seminars with retail investors  Will initiate unit split (4-for-1) to boost liquidity based on retail investors request

Retail investor seminars Unit split

In light of the adoption of the tax-free NISA system, many retail investors voiced their request

4-for-1 unit split Hosted a total of 8 seminars in Tokyo and to lower the barrier of entry other major cities during the 8th FP and 930 retail investors attended Effective date of unit split: 1-Aug-2014 Date Event Location # of attendees

17-Apr "Retail Investor Seminar" Toyama approx. 40 Pre-split Post-split 25-Apr "Retail Investor Joint IR Seminar" Nagoya approx. 230

9-May "Retail Investor Seminar" Kumamoto approx. 70

23-May "Retail Investor Seminar" Kobe approx. 80 Increment 1 unit 4 units

30-May "Retail Investor Joint IR Seminar" Fukuoka approx. 160 7-Jun "Retail Investor Joint IR Seminar" Tokyo approx. 150 Unit price* ¥754,400 ¥188,600 25-Jun "Retail Investor Seminar" Osaka approx. 50 (Note) Above pre-split unit price was reverse calculated from the closing price (post-split) as 12-Jul "Retail Investor Joint IR Seminar" Tokyo approx. 150 at the end of the 8th fiscal period.

15 3. Future Strategy

16 External Growth Targets

A focus on Investment in the Tokyo 23 wards that combine the stability and growth

Property market trends Portfolio policy Medium-term targets Make selective investments ¥200bn Prime properties in the to ensure that over 90% of all Asset size Yields are in downtrend Tokyo 23 Wards portfolio assets are in the (acquisition price basis) Tokyo 23 Wards Portfolio Generally retain 90% ratio of Tokyo 23 Ward assets Yields are higher than Continue selective Prime properties in Tokyo assets despite a investments in prime DPU target major regional cities Over per unit general downtrend properties (on-going basis) ¥4,000

Asset size & ratio of Tokyo 23 Ward assets Achieve milestone of ¥130bn in Tokyo 23 Ward assets Over 90% (billion yen) asset size by maximizing sponsor pipeline and acquisitions using proprietary sources 200

92.5% 94.6% 130

116.2 93.3% 111.9 96.3%

71.2 74.5

IPO 7th FP Post-PO 8th FP within 1 year within 5 years Feb'13 Jan'14 Feb'14 Jul'14

Growth curve since IPO Future targets

17 Solid External Growth-①: Historical Performance

 Realized consistent external growth contributing to increased unitholder value since the IPO  Going forward, CRR plans to “stay the course” by continuing to extend unitholder value and bolster the portfolio 6th FP 7th FP 8th FP Future targets

Total assets 53 properties 55 properties 80 properties Continue external growth that augments Acquisition price ¥71.225bn ¥74.563bn ¥116.239bn unitholder value

Actualized external growth with accretive effects on unitholder value

Aim to further NAV per unit* ¥150,798 ¥156,382 ¥171,433 improve performance

Historical DPU* Maintain and surpass 4,300 ¥4,268 ¥4,000 DPU target ¥4,203 4,200

4,100 ¥4,051 Upward target revision (pre-split: over ¥16,000) 4,000 Upward target revision (pre-split: ¥15,500~¥16,000) 3,900 ¥3,860 IPO target level 3,800 (pre-split: ¥15,000~¥15,500)

3,700 IPO forecast 6th FP actual 7th FP actual 8th FP actual (6th FP forecast) (Note) Figures for “NAV per unit” and “DPU” are adjusted for the 4-for-1 unit split.

18 Solid External Growth-②: Opportunities & Pipeline

 CRR plans to capitalize on opportunities for acquisitions by leveraging sponsor pipeline and bridge funds  Currently, there are 9 on-going development projects undertaken by the sponsor

Property pipeline map(*1) RoFR(*1) for ACROSS Itabashi Kuyakusho-mae

Sponsor-developed properties

# of Area units Iwato-cho, Shinjuku-ku, Completed Tokyo 46 Taihei, Sumida-ku, Completed Tokyo 46

Kamata, Ota-ku, Tokyo 204

Kita-Shinagawa, Shinagawa-ku, Tokyo 97

Aobadai, Meguro-ku, Tokyo 124

Higashi-Kanda, Chiyoda-ku, Tokyo 131 Godokaisha Ao Akua-Elua

Nishi-Magome, Ota-ku, Tokyo 111 Non-recourse loan ¥2.755bn Real estate Nishi-ku, Osaka-shi, Osaka 84 TBI ¥3.993bn Anonymous partnership Chuo-ku, Osaka-shi, Osaka TBD equity ¥1.238bn Sponsor-affiliated properties(*2) CRR assets in Tokyo 23 Wards 1 property Sponsor-developed properties # of properties / units # of # of 104 units Location (*1) No commitments have been made by CRR properties units to acquireany of the above properties. Total CRR contribution ¥184.5mn (*2) Sponsor-affiliated properties refers to Sign-off date of Partnership Agmt. 27-Nov-2013 Tokyo 23 Wards 6 369 assets owned by the sponsor or sponsor’s group as well as any assets Duration of RoFR 31-Aug-2015 owned by SPCs where the asset management is delegated to the sponsor’s group. Total appraisal value (*3) ¥3.9bn Kansai area 2 178 (*3) Figures for total appraisal value and avg. NOI yield are based on disclosures upon obtaining right of first refusal. Avg. NOI yield (appraisal) (*3) 5.5%

19 4. Performance Forecast

20 Performance Forecast

 In light of new acquisitions, refinancing and impacts from the sales tax hike, 9th FP DPU is expected to be ¥4,220

8th FP actual performance vs. 9th FP forecast

Profit/loss from Revenue from leasing business Operating income Ordinary income leasing business Current Operating Revenue from Other revenue from Leasing business Interest payable, net income expenses (non- leasing business leasing business expenses etc. leasing business) 8th FP actual ¥3.827bn ¥189mn ¥1.551bn ¥361mn ¥386mn ¥1.718bn

9th FP forecast ¥3.903bn ¥122mn ¥1.475bn ¥453mn ¥398mn ¥1.699bn

Differential + ¥76mn △ ¥66mn △ ¥75mn + ¥92mn + ¥11mn △ ¥19mn New properties ↑ New acquisitions↑ Mgmt. fees ↑ New borrowings↑ Basis for change Renewal fees, etc.↓ Repair costs ↓ (full year basis) Sales tax, etc.↑ Financing costs ↓ Leasing fees, etc.↓

Property mgmt. REIT mgmt.

+ ¥189 △ ¥259

+ ¥23

Differential: +¥120 8th FP Actual DPU 9th FP DPU forecast (Jul’14) th 9 FP initial (Jan’15) DPU projection post-split: ¥4,268 (Mar’14) ¥4,220 (¥17,074) ¥4,100

21 5 ．Appendix

22 P&L: 8th Period

(thousand yen) 7th Fiscal Period 8th Fiscal Period Period-on-period change (period ending Jan 2014) (period ending Jul 2014) Operating revenue 2,673,839 4,017,448 1,343,608 Income from leasing business 2,581,691 3,827,676 1,245,984 Other income from leasing business 85,618 186,413 100,795 Income from silent partnership 6,529 3,358 ▲ 3,171 Operating expense 1,246,173 1,912,363 666,190 Leasing business expenses 963,688 1,551,354 587,666 Asset manager's fee 169,197 196,535 27,338 Other operating expenses 113,287 164,474 51,186 Operating profit 1,427,666 2,105,084 677,418 Non-operating income 405 453 47 Non-operating expense 294,629 385,834 91,205 Loan Interest payable 218,737 276,595 57,858 Bond Interest payable 0 52 52 Others 75,892 109,187 33,294 Ordinary profit 1,133,442 1,719,702 586,260 EBIT 1,133,442 1,719,702 586,260 Income tax 934 971 37 Income tax 932 972 40 Income taxes deferred 2 0 ▲ 2 Net income 1,132,507 1,718,731 586,223 Deferred income at beginning of term 38 5 ▲ 32 Unappropriated retained earnings 1,132,545 1,718,736 586,190

Rent NOI 2,139,580 3,130,845 991,264

Total distributions 1,132,540 1,718,737 586,196 Issued units 67,361 units 100,664 units 33,303 units DPU 16,813 yen 17,074 yen 261 yen

23 Balance Sheet: 8th Period

7th Fiscal Period 8th Fiscal Period Period-on-period change (period ending Jan 2014) (period ending Jul 2014) 《Assets》 (thousand yen) Current assets 3,926,683 6,792,765 2,866,081 Cash and bank deposits 1,241,080 2,862,356 1,621,276 Cash and bank deposits in trust 2,654,711 3,839,594 1,184,882 Other current assets 30,891 90,814 59,922 Non-current assets 76,355,670 118,976,481 42,620,811 Tangible assets 75,474,327 117,950,040 42,475,712 Properties in trust etc. 75,474,327 117,950,040 42,475,712 Intangible assets 265,279 265,279 － Other intangible assets 4,910 4,299 ▲ 610 Investments and other assets 611,153 756,862 145,709 Deferred assets 72,591 96,923 24,331 Total assets 80,354,946 125,866,170 45,511,224 《Liabilities and Net Assets》 Current liabilities 1,673,974 1,109,615 ▲ 564,358 Short term loans payable 1,000,000 － ▲ 1,000,000 Account payables 117,068 298,634 181,566 Other account payables 76,431 100,077 23,645 Accrued expenses 56,398 85,004 28,605 Income taxes payable, etc. 683 681 ▲ 1 Advance received 419,426 622,091 202,665 Others 3,967 3,126 ▲ 841 Non-current liabilities 43,553,916 66,127,204 22,573,287 Investment Corporation Bonds payable － 3,000,000 3,000,000 Long term loans payable 42,720,000 61,920,000 19,200,000 Tenant leasehold and security deposits in trust,etc. 833,916 1,207,204 373,287 Total liabilities 45,227,891 67,236,820 22,008,929 Unitholders' equity 35,108,382 58,619,414 23,511,032 Unitholders' capital 33,975,836 56,900,677 22,924,841 Surplus 1,132,545 1,718,736 586,190 Valuation and translation adjustments 18,672 9,936 ▲ 8,736 Total net assets 35,127,054 58,629,350 23,502,295 Total liabilities and net assets 80,354,946 125,866,170 45,511,224

24 8th ~ 9th Period Performance Forecast

(million yen) 7th Fiscal Period 8th Fiscal Period 9th Fiscal Period (period ending Jan 2014) (period ending Jul 2014) (period ending Jan 2015)

Forecast Forecast Actual results Actual results Differential Differential (Mar'14) (Sep'12)

# of operating days 184 days 181 days 184 days Income from leasing business 2,673 4,005 4,017 11 4,026 9 Income from leasing business 2,581 3,844 3,827 ▲ 16 3,903 76 Other income from leasing business 92 161 189 28 122 ▲ 66 Leasing business expenses 963 1,546 1,551 4 1,475 ▲ 75 Leasing business expenses 421 731 761 29 667 ▲ 93 Taxes and public dues 112 125 125 0 138 13 Depreciation expense 429 689 664 ▲ 24 669 4

Profit/loss from leasing business 1,710 2,459 2,466 6 2,551 85 Other operating expenses 282 377 361 ▲ 16 453 92 Operating profit 1,427 2,081 2,105 23 2,097 ▲ 7 Non-operating profit/loss ▲ 294 ▲ 409 ▲ 385 24 ▲ 397 ▲ 11 Oridinary profit 1,133 1,672 1,719 47 1,700 ▲ 19

Income tax, etc 0 1 0 － 1 － Net income 1,132 1,671 1,718 47 1,699 ▲ 19 DPU* 16,813 16,600 17,074 474 4,220 ▲ 48 Issued units at term end 67,361 units 100,662 units 100,662 units 0 units 402,648 units 301,986 units # of properties at term end 55 properties 79 properties 80 properties 1 properties 80 properties 0 properties Total acquisition price 74,563 114,618 116,239 1,621 116,239 0

(Note) Figures shown above for differential in performance between the actual results of the 8th period and the forecast of the 9th period have been adjusted to reflect the 4-for-1 unit split effective as of 1-Aug-2014.

25 CRR Characteristics

 Main investment target are "COMFORIA" series assets and other investments that utilize the value chain of Tokyu Land Corporation (TLC) Group.

“COMFORIA ” Series Value chain of TLC Group

 A high-class rental residence series produced by TLC Group enabling tenants to enjoy urban convenience and smart TOKYU LAND CORPORATION lifestyles <> Comprehensive real estate developer 3 Concepts of COMFORIA Information on the sale of properties Warehousing Advisory Human resources / Knowhow

TOKYU COMMUNITY CORP. Tokyu Livable, Inc.

Comfortable---Key concept of the brand Management of Comprehensive real  In principle, TLC Group companies undertake property condominiums and estate marketing management for COMFORIA series properties in buildings intermediary and providing residences that offer comfort Property management brokerage of land and agreements TLC COMFORIA Investment buildings Information on the sale of Management INC. Information on the sale of properties properties Active urban lifestyle Prospective tenant advisory Market information Market information

 For tenants to enjoy active urban lifestyles, COMFORIA Tokyu Relocation Co., Ltd. TOKYU E-LIFE DESIGN Inc. series properties are conveniently located primarily in the Tokyo 23 wards Real estate rental Management and operation management, management of senior residence and of long-term-stay hotels nursing homes Smart lifestyle with an emphasis on security Property management Market information agreements  COMFORIA series have facilities that enable tenants to Information on the sale of enjoy smart lifestyles with an emphasis on security properties Prospective tenant advisory Market information

26 “COMFORIA” Series

Key concept of the brand

 TLC Group companies undertake property management for COMFORIA series properties in providing residences that offer comfort

All images from COMFORIA Ryogoku South

Active urban lifestyle

 For tenants to enjoy active urban lifestyles, COMFORIA series properties are conveniently located primarily in the Tokyo 23 wards

COMFORIA Nihonbashi COMFORIA Higashiikebukuro COMFORIA NishiAzabu COMFORIA BunkyoKasuga COMFORIA Misyuku COMFORIA Atago Ningyocho (Chuo-ku, Tokyo) WEST (Toshima-ku, Tokyo) (Minato-ku, Tokyo) (Bunkyo-ku, Tokyo) (Setagaya-ku, Tokyo) (Minato-ku, Tokyo)

Smart lifestyle with an emphasis on security

 COMFORIA series have facilities that enable tenants to enjoy smart lifestyles with an emphasis on security

Security camera Dimple key CS antenna

27 “COMFORIA” Series Representative Properties

41 COMFORIA HIGASHI 26 COMFORIA HARAJYUKU 60 COMFORIA MITA EAST IKEBUKURO WEST

3 Sendagaya, Shibuya-ku, 3 Higashiikebukuro, Location Location Location 4 Shiba, Minato-ku, Tokyo Tokyo Toshima-ku,Tokyo Acquisition Price 3,629,000 (thousand yen) Acquisition Price 3,911,000 (thousand yen) Acquisition Price 3,190,550 (thousand yen)

Land area/GFA 1,476.95 ㎡ / 6,314.63 ㎡ Land area/GFA 1,117.88 ㎡ / 8,296.57 ㎡ Land area/GFA 807.54 ㎡／4,973.31 ㎡

Rentable Units 99 units Rentable Units 155 units Rentable Units 111 units Construction/ Construction/ Construction/ RC/B1-7F RC/13F RC/B1-13F Floors Floors Floors Completion Date February 2005 Completion Date June 2009 Completion Date January 2008

28 Portfolio Policy

Investment Target

 Primary target: Maintain over 80% investment ratio of “Rental Residences” generating stable earnings.  Sub-target: “Operational Rental Residences” with services likely to attract demand (i.e. senior residences, serviced apartments and student apartments.

Investment Asset Type Investment Targets (acquisition price base) Rental residences Rental residences 80%～100% Residential properties Operational rental residences 0%～20%

(Note 1) Investment ratio is based on acquisition price. In terms of land with limited property rights, calculations are based on the type of residential property built on the parcel. Over 80%

Investment Area

 Maintain over 80% investment ratio of assets in “Central Tokyo”, “Sub-central Tokyo” and “Tokyo Metropolitan areas”, where there is strong potential demand for rental residences. Investment ratio Category Investment Area (acquisition price base) Chiyoda-ku, Chuo-ku, Minato-ku, Central Tokyo 5 major wards Shinjuku-ku, and Shibuya-ku Sub-central Dense residential districts Other Tokyo wards (excluding above) Tokyo outside of the 5 major wards 80%～100% Tokyo area Tokyo Dense residential districts in All other areas within Tokyo Metropolitan all other Tokyo Metropolitan Metropolitan boundaries expecting area areas strong demand Over 80% Other major Dense residential districts in ordinance-designated cities 0%～20% cities

(Note 2) Investment ratio is based on acquisition price. In terms of land with limited property rights, calculations are based on the area where the parcel exists.

29 # of Net migration and Household in Tokyo 23 Wards

 CRR invests in rental residences located primarily in the Tokyo area for “singles and small families”. Such residences are likely to receive stronger demand as the aggregate number of households increase.

① Net migration of younger generation to Tokyo 23 Wards have been increasing and number of Housing market households are expected to increase in the Tokyo metropolitan area and Tokyo. and demographic ② Due to demographic changes associated with declining birth rate and late marriages, the trends number of singles and small families are expected to continue increasing.

Net-migration of group Estimated number of Number of households in Tokyo by ages 15 to under 39 households in Tokyo by type

16,462 16,482 10,000 80,000 16,178 16,266 7 000 16,000 15,562

6 000 60,000 8,000 5 000 14,000 6,789 6,814 40,000 6,663 6,752 4 000 6,382 3 000 6,000 12,000 20,000 2 000

1 000 0 Tokyo 23 Nagoya-shi Osaka-shi Fukuoka-shi 10,000 4,000 0 Wards 2010 2015 2020 2025 2030 2010 2015 2020 2025 2030 Single Married couple Tokyo Metropolitan Area Tokyo 2010 2011 2012 2013 Married couple with children Single parent with children Others

(Source) Statistics Bureau, Ministry of Internal Affairs (Source) National Institute of Population and Social Security (Source) National Institute of Population and Social Security and Communications, "Report on Internal Migration in Research's "Household statistical projection for Japan (by Research's "Household statistical projection for Japan (by Japan" prefecture) Apr. 2014“. prefecture) Apr. 2014“. (Note) Refer to References (*4) for more information. (Note) Refer to References (*4) for more information.

30 Demand & Price Stability of Tokyo 23 Ward Assets

① Since rental housing starts in the Tokyo 23 Wards have remained stable, our current assets are Performance relatively unaffected by new supply. stability of AUM ② Asset prices of rental housing in the Tokyo 23 Wards are more stable than those in other major cities.

Rental housing starts in the Tokyo 23 Wards Property prices in major cities(*)

50,000 1.40

40,000 50% decline for the last five years compared 1.30 to peak year Low price volatility of Tokyo property compared to other 30,000 major cities 1.20

20,000 1.10

10,000 1.00

0 0.90 '98'99'00'01'02'03'04'05'06'07'08'09'10'11'12'13 Apr‐04 Apr‐05 Apr‐06 Apr‐07 Apr‐08 Apr‐09 Apr‐10 Apr‐11 Apr‐12 Apr‐13

Tokyo 23 Wards Nagoya‐shi Osaka‐shi Fukuoka‐shi

(Source) Ministry of Land, Infrastructure, Transportation and Tourism, Policy Bureau, (Note) Figures of the above index are based on the assumption that the quotient from dividing rent rates by Construction Statistics Office “Housing Starts" expected yield is equivalent to property prices. Property price on 1-Apr-2004 is benchmarked at 1 point. （Source）Prepared by Investment Management based on Statistics Bureau, Ministry of Internal Affairs and Communications “Retail Policy Survey ‘house rent from private owner’ ”, and Japan Real Estate Institute “The Japan Real Estate Investor Survey ‘Expected Cap Rate’ ”. Expected Cap Rate in Tokyo Ward 23 is applied to that in Southern Tokyo.

31 Portfolio Map (as at 8th FP end)

CRR manages assets with superb accessibility located mainly in the Tokyo 23 Wards

Central Tokyo 32 properties

1 COMFORIA NIHONBASHI NINGY OCHO 18 COMFORIA MINAMIAOYAMA 48 COMFORIA SHIROKANETAKANAWA 61 COMFORIA LIV SHIBAURA CANAL 2 COMFORIA WASEDA 19 COMFORIA MINAMIAOYAMA DEUX 49 COMFORIA NIHONBASHI NINGYOCHO EAST 69 COMFORIA KITASANDO 3 COMFORIA SHIMOOCHIAI 20 COMFORIA NISHIWASEDA 50 COMFORIA ATAGO 70 COMFORIA YOYOGIUEHARA 4 COMFORIA HIGASHINAKANO 24 COMFORIA DAIKANYAMA 56 COMFORIA KUDAN 71 COMFORIA SASAZUKA 14 COMFORIA GINZA EAST 25 COMFORIA HARAJYUKU NORD 57 COMFORIA NIHONBASHININGYOCHO NORTH 72 COMFORIA SHINJUKUGYOENⅡ 15 COMFORIA AZABUDAI 26 COMFORIA HARAJYUKU 58 COMFORIA SHINKAWA 73 COMFORIA ICHIGAYAYANAGICHO 16 COMFORIA SHIBAKOEN 30 COMFORIA MITA NORTH 59 COMFORIA AKASAKA 74 COMFORIA KAGURAZAKA 17 COMFORIA NISHIAZABU 31 COMFORIA SHIBAURA BOWHOUSE 60 COMFORIA MITA EAST 80 COMFORIA NIBANCHO

Sub-central Tokyo 40 properties

5 COMFORIA BUNKYOKASUGA 38 COMFORIA MISYUKU 6 COMFORIA ASAKUSAMATSUGAYA 39 COMFORIA GAKUGEIDAIGAKU 7 COMFORIA NISHIOI 40 COMFORIA HIGASHINAKANO DEUX 8 COMFORIA NAKANO 41 COMFORIA HIGASHIIKEBUKURO WEST 9 COMFORIA SHIMOKITAZAWA 43 COMFORIA RYOGOKU DEUX 10 COMFORIA NISHIKAMATA 44 COMFORIA OMORI DEUX 11 COMFORIA OYAMA 45 COMFORIA MACHIYA 12 COMFORIA KIYOSUMISHIRAKAWA SOUTH 51 COMFORIA ASAKUSABASHI 13 COMFORIA KOMAZAWA 52 COMFORIA RYOGOKU SOUTH 21 COMFORIA LIV KOISHIKAWA 53 COMFORIA TOYOSU 22 COMFORIA LIV SENGOKU 55 COMFORIA SUMIDA-TACHIBANA 23 COMFORIA DAIKANYAMAAOBADAI 62 COMFORIA UENOHIROKOJI 27 COMFORIA IKEBUKURO 63 COMFORIA KASUGATOMISAKA 29 COMFORIA LIV RYOGOKUISHIWARA 64 COMFORIA HONKOMAGOME 32 COMFORIA ASAKUSABASHI DEUX 65 COMFORIA MORISHITA 33 COMFORIA OSHIAGE 66 COMFORIA LIV KIBAKOEN 34 COMFORIA HONJOAZUMABASHI 67 COMFORIA MEGURO CHOJAMARU 35 COMFORIA KIYOSUMISHIRAKAWA TROIS 68 COMFORIA NISHIMAGOME 36 COMFORIA MONZENNAKACHO 75 COMFORIA HIGASHIIKEBUKURO EA ST 37 COMFORIA HIMONYA 76 COMFORIA HIGASHIIKEBUKURO

Sub-central Tokyo 5 properties

28 COMFORIA LIV KOMAE 42 COMFORIA YOKOHAMAKANNAI 46 COMFORIA LIV ICHIKAWAMYODEN 47 COMFORIA LIV YATSUKA 77 COMFORIA SHINKOYASU

Other major cities 3 properties

54 COMFORIA SHIN-OSAKA 78 COMFORIA SHINSAKAE 79 COMFORIA KITAHORIE

Total 80 properties

32 Portfolio List (1)

Nearest Completion Residential Commercial Rentable Gross floor No. Property name Location Transportation Structure/Floors station (walk) date units units units area

Portfolio properties at ８th FP end

1 COMFORIA NIHONBASHI NINGYOCHO Chuo-ku, Tokyo Ningyocho Station on Tokyo Metro Hibiya Line 2 min Feb. 2008 45 - 45 RC/10F 3,021.53㎡

2 COMFORIA WASEDA Shinjuku-ku, Tokyo Ushigome-yanagicho Station on Toei Oedo Line 5 min Apr. 2009 79 - 79 RC/B1-5F 3,080.28㎡

3 COMFORIA SHIMOOCHIAI Shinjuku-ku, Tokyo Shimo-Ochiai Station on Seibu-Shinjuku Line 3 min Mar. 2005 44 - 44 RC/5F 2,726.15㎡

4 COMFORIA HIGASHINAKANO Shinjuku-ku, Tokyo Higashi-Nakano Station on JR Chuo Line Sobu Line 6 min Mar. 2008 37 - 37 RC/7F 1,058.75㎡

5 COMFORIA BUNKYOKASUGA Bunkyo-ku, Tokyo Kasuga Station on Toei Mita Line/Toei Oedo Line 1 min Nov. 2009 80 - 80 SRC/B1-14F 3,198.54㎡

6 COMFORIA ASAKUSAMATSUGAYA Taito-ku, Tokyo Tawaramachi Station on Tokyo Metro Ginza Line 7 min Sep. 2009 62 - 62 SRC/14F 2,264.84㎡

7 COMFORIA NISHIOI Shinagawa-ku, Tokyo Nishi-Oi Station on JR Yokosuka Line 3 min Jan. 2007 59 - 59 RC/4F 1,542.53㎡

8 COMFORIA NAKANO Nakano-ku, Tokyo Araiyakushi-mae Station on Seibu-Shinjuku Line 10 min Jun. 2007 35 - 35 RC/B1-6F 1,935.39㎡

9 COMFORIA SHIMOKITAZAWA Setagaya-ku, Tokyo Shindaita Station on Keio Inokashira Line 5 min Feb. 2005 116 - 116 RC/B1-11F 5,287.18㎡

10 COMFORIA NISHIKAMATA Ota-ku, Tokyo Kamata Station on JR Keihin-Tohoku Line 4 min Feb. 2009 103 - 103 RC/15F 3,358.99㎡

11 COMFORIA OYAMA Itabashi-ku, Tokyo Oyama Station on Tobu Tojo Line 1 min Oct. 2000 94 3 stores 97 SRC・RC/B1-14F 4,793.28㎡

12 COMFORIA KIYOSUMISHIRAKAWA SOUTH Koto-ku, Tokyo Kiyosumi-shirakawa Station on Tokyo Metro Hanzomon Line 7 min Nov. 2006 45 - 45 RC/10F 1,317.22㎡

13 COMFORIA KOMAZAWA Setagaya-ku, Tokyo Komazawa-daigaku Station on Tokyu Den-en-toshi Line 1 min Apr. 2007 37 2 stores 39 SRC/15F 1,695.46㎡

14 COMFORIA GINZA EAST Chuo-ku, Tokyo Hatchobori Station on Tokyo Metro Hibiya Line 2 min Mar. 2005 132 1 store 133 SRC/B1-14F 5,773.48㎡

15 COMFORIA AZABUDAI Minato-ku, Tokyo Roppongi-itchome Station on Tokyo Metro Namboku Line 6 min Feb. 2005 23 1 office 24 RC/B1-4F 1,028.94㎡

16 COMFORIA SHIBAKOEN Minato-ku, Tokyo Shibakoen Station on Toei Mita Line 3 min Dec. 2004 54 - 54 SRC/13F 1,914.13㎡

17 COMFORIA NISHIAZABU Minato-ku, Tokyo Hiro-o Station on Tokyo Metro Hibiya Line 9 min Sep. 2003 21 1 store 22 RC/9F 1,069.77㎡

18 COMFORIA MINAMIAOYAMA Minato-ku, Tokyo Gaiemmae Station on Tokyo Metro Ginza Line 5 min Oct. 2003 23 1 store 24 RC・S/B1-9F 1,763.88㎡

19 COMFORIA MINAMIAOYAMA DEUX Minato-ku, Tokyo Gaiemmae Station on Tokyo Metro Ginza Line 6 min Feb. 2003 6 - 6 RC/8F 487.97㎡

20 COMFORIA NISHIWASEDA Shinjuku-ku, Tokyo Takadanobaba Station on Tokyo Metro Tozai Line 3 min Feb. 2005 60 - 60 SRC・RC/B1-13F 2,971.10㎡

21 COMFORIA LIV KOISHIKAWA Bunkyo-ku, Tokyo Kasuga Station on Toei Mita Line 5 min Nov. 2004 37 - 37 RC/B1-7F 1,015.71㎡

22 COMFORIA LIV SENGOKU Bunkyo-ku, Tokyo Sengoku Station on Toei Mita Line 6 min May. 1989 44 - 44 RC/5F 3,514.75㎡

23 COMFORIA DAIKANYAMAAOBADAI Meguro-ku, Tokyo Shinsen Station on Keio Inokashira Line 8 min Dec. 2005 26 - 26 RC/B1-10F 1,533.95㎡ (Terrace)RC/B1-5F (Terrace) 634.79㎡ 24 COMFORIA DAIKANYAMA Shibuya-ku, Tokyo Ebisu Station on Tokyo Metro Hibiya Line 2 min Jan. 2005 40 1 store 41 (Tower)S・SRC/B1-14F (Tow er) 1,632.82㎡ 25 COMFORIA HARAJYUKU NORD Shibuya-ku, Tokyo Kita-sando Station on Tokyo Metro Fukutoshin Line 4 min Jul. 2003 8 - 8 RC/B1-6F 1,227.15㎡

26 COMFORIA HARAJYUKU Shibuya-ku, Tokyo Harajuku Station on JR Yamanote Line 4 min Feb. 2005 99 - 99 RC/B1-7F 6,314.63㎡

27 COMFORIA IKEBUKURO Toshima-ku, Tokyo Ikebukuro Station on JR Yamanote Line 5 min Jan. 2005 28 - 28 RC/11F 1,171.21㎡

28 COMFORIA LIV KOMAE Komae-shi, Tokyo Kitami Station on Odakyu Line 7 min Mar. 1990 24 - 24 RC/4F 1,468.30㎡

29 COMFORIA LIV RYOGOKUISHIWARA Sumida-ku, Tokyo Ryogoku Station on Toei Oedo Line 5 min Mar. 2007 47 - 47 RC/11F 1,151.47㎡

30 COMFORIA MITA NORTH Minato-ku, Tokyo Akabanebashi Station on Toei Oedo Line 5 min Feb. 2003 30 - 30 SRC・RC/11F 1,257.94㎡

33 Portfolio List (2)

Nearest Completion Residential Commercial Rentable Gross floor No. Property name Location Transportation Structure/Floors station (walk) date units units units area

Portfolio properties at 8th FP end (continued) Shibaura-futo Station on New Transit Yurikamome 6 min 31 COMFORIA SHIBAURA BOWHOUSE Minato-ku, Tokyo Mar. 2006 75 - 75 RC/15F 4,862.18㎡ Tamachi Station on JR Yamanote Line 11 min 32 COMFORIA ASAKUSABASHI DEUX Taito-ku, Tokyo Asakusabashi Station on JR Chuo Line Sobu Line 8 min Dec. 2007 46 - 46 SRC/13F 1,596.33㎡

33 COMFORIA OSHIAGE Sumida-ku, Tokyo Oshiage Station on Tokyo Metro Hanzomon Line 2 min Oct. 2007 47 - 47 RC/11F 1,369.26㎡

34 COMFORIA HONJOAZUMABASHI Sumida-ku, Tokyo Honjo-azumabashi Station on Toei Asakusa Line 8 min Jan. 2008 48 - 48 RC/9F 1,434.29㎡

35 COMFORIA KIYOSUMISHIRAKAWA TROIS Koto-ku, Tokyo Kiyosumi-shirakawa Station on Tokyo Metro Hanzomon Line 4 min Apr. 2008 50 - 50 RC/9F 1,553.45㎡

36 COMFORIA MONZENNAKACHO Koto-ku, Tokyo Monzen-nakacho Station on Tokyo Metro Tozai Line 7 min Apr. 2008 144 - 144 RC/13F 4,916.04㎡

37 COMFORIA HIMONYA Meguro-ku, Tokyo Gakugei-daigaku Station on Tokyu Toyoko Line 12 min Mar. 2003 28 - 28 RC/6F 2,302.53㎡

38 COMFORIA MISYUKU Setagaya-ku, Tokyo Ikejiri-ohashi Station on Tokyu Den-en-toshi Line 6 min Feb. 2004 56 3 stores 59 RC/14F 2,842.56㎡

39 COMFORIA GAKUGEIDAIGAKU Setagaya-ku, Tokyo Gakugei-daigaku Station on Tokyu Toyoko Line 8 min Apr. 2005 38 - 38 RC/4F 1,919.59㎡

40 COMFORIA HIGASHINAKANO DEUX Nakano-ku, Tokyo Higashi-Nakano Station on JR Chuo Line Sobu Line 2 min Dec. 2009 40 - 40 RC/B1-9F 1,419.08㎡

41 COMFORIA HIGASHIIKEBUKURO WEST Toshima-ku, Tokyo Higashi-ikebukuro Station on Tokyo Metro Yurakucho Line 9 min Jun. 2009 154 1 store 155 RC/13F 8,296.57㎡ Naka-ku, Yokohamashi, COMFORIA YOKOHAMAKANNAI Kannai Station on JR Keihin-Tohoku Line 5 min Jul. 2009 60 - 60 RC/10F 2,377.62㎡ 42 Kanagawa 43 COMFORIA RYOGOKU DEUX Sumida-ku, Tokyo Ryogoku Station on JR Chuo Line Sobu Line 9 min Aug. 2006 66 - 66 RC/9F 2,010.27㎡

44 COMFORIA OMORI DEUX Ota-ku, Tokyo Omori Station on JR Keihin-Tohoku Line 8 min Feb. 2007 64 - 64 RC/12F 2,180.52㎡

45 COMFORIA MACHIYA Arakawa-ku, Tokyo Machiya Station on Tokyo Metro Chiyoda Line 7 min Apr. 2007 29 1 store 30 RC/11F 1,361.92㎡

46 COMFORIA LIV ICHIKAWAMYODEN Ichikawa-shi, Chiba Myoden Station on Tokyo Metro Tozai Line 9 min Apr. 2007 48 - 48 RC/5F 1,533.11㎡

47 COMFORIA LIV YATSUKA Soka-shi, Saitama Yatsuka Station on TOBU SKYTREE Line 7 min Mar. 2007 62 - 62 SRC/13F 1,710.09㎡

48 COMFORIA SHIROKANETAKANAWA Minato-ku, Tokyo Shirokane-takanawa Station on Tokyo Metro Namboku Line 4 min Oct. 2007 36 1 store 37 RC/13F 1,932.57㎡

49 COMFORIA NIHONBA SHI NINGY OCHO EA ST Chuo-ku, Tokyo Ningyocho Station on Tokyo Metro Hibiya Line 2 min Oct. 2007 81 1 store 82 RC/10F 2,912.38㎡

50 COMFORIA ATAGO Minato-ku, Tokyo Kamiyacho Station on Tokyo Metro Hibiya Line 3 min Apr. 2004 38 - 38 SRC/11F 1,147.20㎡

51 COMFORIA ASAKUSABASHI Taito-ku, Tokyo Asakusabashi Station on JR Chuo Line Sobu Line 5 min Nov. 2011 140 1 store 141 RC/B1-14F 5,273.67㎡

52 COMFORIA RYOGOKU SOUTH Sumida-ku, Tokyo Ryogoku Station on JR Chuo Line Sobu Line 8 min Nov. 2011 61 - 61 RC/9F 2,404.23㎡

53 COMFORIA TOYOSU Koto-ku, Tokyo Toyosu Station on Tokyo Metro Yurakucho Line 9 min Mar. 2009 160 1 store 161 RC/9F 4,513.10㎡ Higashi Yodogawa-ku, Shin-osaka station on JR Tokaido & Sanyo Shinkansen, 3 min 54 COMFORIA SHIN-OSAKA Oct. 2006 132 1 store 133 RC/15F 6,530.63㎡ Osaka-shi, Osaka Tokaido Line / Osaka-shi Shiei Midosuji Line 8 min 55 COMFORIA SUMIDA-TACHIBANA Sumida-ku, Tokyo Omurai station on the Tobu Kameido Line 6 min Sep. 2007 56 - 56 RC/8F 1,888.25㎡

56 COMFORIA KUDAN Chiyoda-ku, Tokyo Kudanshita Station on the Tokyo Metro Tozai Line 7 min 平成19年2月 36 - 36 RC/13F 1,787.89㎡

57 COMFORIA NIHONBA SHININGY OCHO NORTH Chuo-ku, Tokyo Ningyocho Station on the Tokyo Metro Hibiya Line 4 min 平成17年1月 36 - 36 RC/10F 1,717.58㎡

58 COMFORIA SHINKAWA Chuo-ku, Tokyo Hatchobori Station on the JR Keiyo Line 5 min 平成20年3月 59 - 59 RC/12F 2,866.08㎡

59 COMFORIA AKASAKA Minato-ku, Tokyo Akasaka Station on the Tokyo Metro Chiyoda Line 4 min 平成25年4月 40 - 40 RC/B1-11F 2,956.70㎡

60 COMFORIA MITA EAST Minato-ku, Tokyo Mita Station on the Toei Mita Line 5 min 平成20年1月 111 - 111 RC/B1-13F 4,973.31㎡

34 Portfolio List (3)

Nearest Completion Residential Commercial Rentable Gross floor No. Property name Location Transportation Structure/Floors station (walk) date units units units area

Portfolio properties at 8th FP end (continued) Hinode Station on New Transit Yurikamome 7 min 61 COMFORIA LIV SHIBAURA CANAL Minato-ku, Tokyo Dec. 2004 95 - 95 RC/10F 2,703.41㎡ Tamachi Station on the JR Keihin-Tohoku Line 13 min 62 COMFORIA UENOHIROKOJI Taito-ku, Tokyo Ueno-hirokoji Station on the Tokyo Metro Ginza Line 3 min Nov. 2007 36 1 store 37 RC/B1-14F 1,935.60㎡

63 COMFORIA KASUGATOMISAKA Bunkyo-ku, Tokyo Korakuen Station on the Tokyo Metro Marunouchi Line 6 min Feb. 2008 105 1 store 106 RC/B1-12F 4,479.23㎡

64 COMFORIA HONKOMAGOME Bunkyo-ku, Tokyo Sengoku Station on the Toei Mita Line 1 min Jan. 2005 36 - 36 SRC/13F 2,623.37㎡

65 COMFORIA MORISHITA Koto-ku, Tokyo Morishita Station on the Toei Shinjuku Line 1 min Sep. 2007 74 1 store 75 RC/14F 2,159.39㎡

66 COMFORIA LIV KIBAKOEN Koto-ku, Tokyo Kiba Station on the Tokyo Metro Tozai Line 4 min Sep. 2007 60 - 60 RC/9F 1,753.85㎡

67 COMFORIA MEGURO CHOJAMARU Shinagawa-ku, Tokyo Meguro Station on the JR Yamanote Line 8 min Mar. 2005 71 - 71 RC/B2-3F 3,720.52㎡

68 COMFORIA NISHIMAGOME Ota-ku, Tokyo Nishimagome Station on the Toei Asakusa Line 6 min Aug. 2005 52 - 52 RC/5F 1,797.93㎡

69 COMFORIA KITASANDO Shibuya-ku, Tokyo Kitasando Station on the Tokyo Metro Fukutoshin Line 3 min Feb. 2005 144 - 144 RC/B1-14F 7,667.04㎡

70 COMFORIA YOYOGIUEHARA Shibuya-ku, Tokyo Yoyogi-uehara Station on the Tokyo Metro Chiyoda Line 9 min Feb. 2003 51 - 51 RC/10F 2,344.24㎡

71 COMFORIA SASAZUKA Shibuya-ku, Tokyo Sasazuka Station on the Keio Line 2 min Nov. 2006 89 - 89 RC/14F 3,440.91㎡

72 COMFORIA SHINJUKUGYOENⅡ Shinjuku-ku, Tokyo Shinjukugyoen-mae Station on the Tokyo Metro Marunouchi Line 2 min Nov. 2005 65 - 65 RC/15F 2,312.79㎡

73 COMFORIA ICHIGAYAYANAGICHO Shinjuku-ku, Tokyo Ushigome-yanagicho Station on the Toei Oedo Line 3 min Oct. 2007 68 1 store 69 RC/13F 2,416.85㎡

74 COMFORIA KAGURAZAKA Shinjuku-ku, Tokyo Ushigome-kagurazaka Station on the Toei Oedo Line 2 min Sep. 2007 29 - 29 RC/B1-5F 1,161.31㎡

75 COMFORIA HIGASHIIKEBUKURO EAST Toshima-ku, Tokyo Otsuka Station on the JR Yamanote Line 8 min Nov. 2009 90 - 90 RC/11F 3,156.84㎡

76 COMFORIA HIGASHIIKEBUKURO Toshima-ku, Tokyo Higahi-ikebukuro Station on the Tokyo Metro Yurakucho Line 2 min Oct. 2006 48 - 48 SRC/15F 1,798.18㎡ Kanagaw a-ku, COMFORIA SHINKOYASU Shinkoyasu Station on the JR Keihin-Tohoku Line 6 min Jan. 2007 36 - 36 RC/10F 2,622.19 77 Yokohama-shi, Kanagaw a ㎡ Shinsakae-machi Station on the Nagoya Municipal Subway 78 COMFORIA SHINSAKAE Naka-ku, Nagoya-shi, Aichi 7 min May. 2009 144 - 144 RC/13F 4,098.97㎡ Higashiyama Line Nishinagahori Station on the Osaka Municipal Subway 79 COMFORIA KITAHORIE Nishi-ku, Osaka-shi, Osaka 2 min Feb. 2007 72 1 store 73 RC/13F 1,910.01㎡ Sennichimae Line & Nagahori Tsurumiryokuchi Line 80 COMFORIA NIBANCHO Chiyoda-ku, Tokyo Kojimachi Station on Tokyo Metro Yurakucho Line 1 min Feb. 2006 42 - 42 SRC/15F 2,165.01㎡

Total assets under management 4,986 5,011 212,068.77㎡

35 Appraisal Value (1)

At acquisition 7th FP end 8th FP end Appraisal - Acquisition price Acquisition Appraisal-book No. Property name price (million Appraisal valueAppraisal value Appraisal value Book value At acquisition 7th FP 8th FP Appraisal company value yen) (million yen) Cap Rate (million yen) Cap Rate (million yen) Cap Rate (million yen) (million yen) (million yen) (million yen) (million yen)

Portfolio properties at 8th FP end

1 COMFORIA NIHONBASHI NINGYOCHO 1,586 1,610 5.3% 1,800 4.8% 1,840 4.7% 1,616 223 23 213 253 Japan Real Estate Institute

2 COMFORIA WASEDA 1,900 1,940 5.3% 2,200 4.8% 2,250 4.7% 1,949 300 40 300 350 Japan Real Estate Institute

3 COMFORIA SHIMOOCHIAI 1,181 1,280 5.7% 1,410 5.0% 1,440 4.9% 1,160 279 99 229 259 Japan Real Estate Institute

4 COMFORIA HIGASHINAKANO 552 556 5.4% 603 4.9% 617 4.8% 571 45 3 50 64 Japan Real Estate Institute

5 COMFORIA BUNKYOKASUGA 1,470 1,550 5.3% 1,770 4.8% 1,800 4.7% 1,455 344 80 300 330 DAIWA REAL ESTATE APPRAISAL CO.,LTD

6 COMFORIA ASAKUSAMATSUGAYA 910 926 5.8% 1,080 5.3% 1,090 5.2% 896 193 16 170 180 DAIWA REAL ESTATE APPRAISAL CO.,LTD

7 COMFORIA NISHIOI 902 913 5.5% 954 5.1% 971 5.0% 922 48 10 51 68 Japan Real Estate Institute

8 COMFORIA NAKANO 881 896 5.4% 942 4.9% 943 4.8% 903 39 14 60 61 Japan Real Estate Institute

9 COMFORIA SHIMOKITAZAWA 2,587 2,640 5.4% 2,960 4.8% 2,960 4.8% 2,536 423 53 373 373 Japan Real Estate Institute

10 COMFORIA NISHIKAMATA 1,550 1,650 5.6% 1,900 5.1% 1,930 5.0% 1,530 399 100 350 380 DAIWA REAL ESTATE APPRAISAL CO.,LTD

11 COMFORIA OYAMA 1,987 2,120 5.9% 2,100 5.3% 2,140 5.2% 1,969 170 133 113 153 Japan Real Estate Institute

12 COMFORIA KIYOSUMISHIRAKAWA SOUTH 740 772 5.5% 855 4.9% 874 4.8% 737 136 32 115 134 Japan Real Estate Institute

13 COMFORIA KOMAZAWA 1,290 1,360 5.3% 1,500 4.8% 1,530 4.7% 1,287 242 70 210 240 Japan Real Estate Institute

14 COMFORIA GINZA EAST 3,059 3,300 5.4% 3,540 4.9% 3,570 4.8% 3,040 529 241 481 511 Japan Real Estate Institute

15 COMFORIA AZABUDAI 574 677 5.1% 702 4.7% 716 4.6% 574 141 103 128 142 Japan Real Estate Institute

16 COMFORIA SHIBAKOEN 1,398 1,480 5.2% 1,590 4.7% 1,610 4.6% 1,388 221 82 192 212 Morii Appraisal & Investment Consulting,Inc.

17 COMFORIA NISHIAZABU 755 842 5.1% 834 4.8% 842 4.7% 754 87 87 79 87 Japan Real Estate Institute

18 COMFORIA MINAMIAOYAMA 1,041 1,250 5.2% 1,310 4.7% 1,350 4.6% 1,048 301 209 269 309 The Tanizawa Sogo Appraisal Co.,Ltd.

19 COMFORIA MINAMIAOYAMA DEUX 248 321 5.2% 349 4.8% 353 4.7% 251 101 73 101 105 The Tanizawa Sogo Appraisal Co.,Ltd.

20 COMFORIA NISHIWASEDA 1,685 1,830 5.2% 1,930 4.7% 1,970 4.6% 1,674 295 145 245 285 Morii Appraisal & Investment Consulting,Inc.

21 COMFORIA LIV KOISHIKAWA 552 579 5.4% 617 4.9% 631 4.8% 551 79 27 65 79 DAIWA REAL ESTATE APPRAISAL CO.,LTD

22 COMFORIA LIV SENGOKU 1,219 1,390 5.6% 1,470 5.2% 1,500 5.1% 1,221 278 171 251 281 Japan Real Estate Institute

23 COMFORIA DAIKANYAMAAOBADAI 926 1,110 4.8% 1,130 4.7% 1,150 4.6% 926 223 184 204 224 Japan Valuers Co.,Ltd.

24 COMFORIA DAIKANYAMA 1,807 2,020 5.1% 2,050 4.8% 2,060 4.7% 1,806 253 213 243 253 Japan Real Estate Institute

25 COMFORIA HARAJYUKU NORD 533 592 5.2% 642 4.8% 675 4.7% 536 138 59 109 142 The Tanizawa Sogo Appraisal Co.,Ltd.

26 COMFORIA HARAJYUKU 3,629 4,230 5.1% 4,120 4.7% 4,170 4.6% 3,619 550 601 491 541 Japan Real Estate Institute

27 COMFORIA IKEBUKURO 602 638 5.5% 642 5.0% 651 4.9% 596 54 36 40 49 DAIWA REAL ESTATE APPRAISAL CO.,LTD

28 COMFORIA LIV KOMAE 399 490 6.2% 502 5.7% 510 5.6% 432 77 91 103 111 Japan Real Estate Institute

29 COMFORIA LIV RYOGOKUISHIWARA 651 679 5.6% 739 5.0% 769 4.8% 648 120 28 88 118 Morii Appraisal & Investment Consulting,Inc.

30 COMFORIA MITA NORTH 850 887 4.8% 922 4.8% 965 4.6% 858 106 37 72 115 Japan Valuers Co.,Ltd.

36 Appraisal Value (2)

Portfolio properties at 8th FP end (continued)

31 COMFORIA SHIBAURA BOWHOUSE 2,650 2,890 5.2% 2,980 4.9% 3,010 4.8% 2,683 326 240 330 360 Japan Real Estate Institute

32 COMFORIA ASAKUSABASHI DEUX 874 886 5.1% 919 4.9% 945 4.8% 899 45 12 45 71 Japan Real Estate Institute

33 COMFORIA OSHIAGE 714 733 5.2% 756 5.0% 771 4.9% 736 34 19 42 57 Japan Real Estate Institute

34 COMFORIA HONJOAZUMABASHI 762 775 5.2% 806 5.0% 821 4.9% 785 35 13 44 59 Japan Real Estate Institute

35 COMFORIA KIYOSUMISHIRAKAWA TROIS 873 932 5.1% 948 4.9% 950 4.8% 881 68 59 75 77 Japan Real Estate Institute

36 COMFORIA MONZENNAKACHO 2,658 2,730 5.1% 2,800 4.9% 2,850 4.8% 2,681 168 72 142 192 Japan Real Estate Institute

37 COMFORIA HIMONYA 1,189 1,280 4.9% 1,350 4.9% 1,390 4.7% 1,196 193 91 161 201 Japan Valuers Co.,Ltd.

38 COMFORIA MISYUKU 1,874 2,040 4.8% 2,140 4.8% 2,240 4.6% 1,879 360 166 266 366 Japan Valuers Co.,Ltd.

39 COMFORIA GAKUGEIDAIGAKU 1,138 1,220 5.0% 1,330 4.7% 1,360 4.6% 1,155 204 82 192 222 Japan Real Estate Institute

40 COMFORIA HIGASHINAKANO DEUX 833 903 5.2% 924 4.9% 948 4.8% 841 106 70 91 115 Japan Real Estate Institute

41 COMFORIA HIGASHIIKEBUKURO WEST 3,911 4,260 5.4% 4,600 5.1% 4,700 5.0% 3,923 776 349 689 789 DAIWA REAL ESTATE APPRAISAL CO.,LTD

42 COMFORIA YOKOHAMAKANNAI 972 1,080 5.7% 1,140 5.3% 1,160 5.2% 979 180 108 168 188 Japan Real Estate Institute

43 COMFORIA RYOGOKU DEUX 1,014 1,070 5.1% 1,110 4.9% 1,150 4.8% 1,063 86 55 95 135 Japan Real Estate Institute

44 COMFORIA OMORI DEUX 1,188 1,240 5.1% 1,270 4.9% 1,300 4.8% 1,243 56 52 82 112 Japan Real Estate Institute

45 COMFORIA MACHIYA 594 644 5.3% 724 5.1% 750 5.0% 624 125 50 130 156 Japan Real Estate Institute

46 COMFORIA LIV ICHIKAWAMYODEN 606 666 5.6% 686 5.4% 694 5.3% 637 56 60 80 88 Japan Real Estate Institute

47 COMFORIA LIV YATSUKA 626 673 6.0% 677 5.9% 688 5.8% 657 30 47 51 62 Japan Real Estate Institute

48 COMFORIA SHIROKANETAKANAWA 1,300 1,350 4.9% 1,420 4.6% 1,460 4.5% 1,360 99 50 120 160 Morii Appraisal & Investment Consulting,Inc.

49 COMFORIA NIHONBA SHI NINGY OCHO EA ST 2,139 2,160 5.0% 2,240 4.8% 2,290 4.7% 2,165 124 20 100 150 Japan Real Estate Institute

50 COMFORIA ATAGO 826 843 4.9% 866 4.7% 865 4.7% 841 23 17 40 39 Morii Appraisal & Investment Consulting,Inc.

51 COMFORIA ASAKUSABASHI 2,680 2,750 5.2% 2,920 5.0% 2,990 4.9% 2,734 255 70 240 310 DAIWA REAL ESTATE APPRAISAL CO.,LTD

52 COMFORIA RYOGOKU SOUTH 1,240 1,290 5.2% 1,360 5.0% 1,390 4.9% 1,265 124 50 120 150 DAIWA REAL ESTATE APPRAISAL CO.,LTD

53 COMFORIA TOYOSU 3,096 3,230 5.1% 3,270 4.9% 3,360 4.8% 3,144 215 133 173 263 Japan Real Estate Institute

54 COMFORIA SHIN-OSAKA 2,400 2,450 5.4% 2,480 5.3% 2,530 5.2% 2,474 55 50 80 130 Morii Appraisal & Investment Consulting,Inc.

55 COMFORIA SUMIDA-TACHIBANA 938 977 5.2% 977 5.2% 980 5.1% 997 -17 39 39 42 DAIWA REAL ESTATE APPRAISAL CO.,LTD

56 COMFORIA KUDAN 1,280 1,370 4.7% - - 1,440 4.5% 1,310 129 89 - 159 Morii Appraisal & Investment Consulting,Inc.

57 COMFORIA NIHONBA SHININGY OCHO NORTH 1,108 1,140 4.9% - - 1,180 4.7% 1,138 41 32 - 72 Japan Real Estate Institute

58 COMFORIA SHINKAWA 1,840 1,920 4.8% - - 1,970 4.6% 1,889 80 79 - 129 Morii Appraisal & Investment Consulting,Inc.

59 COMFORIA AKASAKA 1,945 2,000 4.8% - - 2,100 4.6% 1,991 108 55 - 155 Japan Real Estate Institute

60 COMFORIA MITA EAST 3,190 3,300 4.8% - - 3,440 4.6% 3,269 170 109 - 249 Morii Appraisal & Investment Consulting,Inc.

37 Appraisal Value (3)

At acquisition 7th FP end 8th FP end Appraisal - Acquisition price Acquisition Appraisal-book No. Property name price (million Appraisal valueAppraisal value Appraisal value Book value At acquisition 7th FP 8th FP Appraisal company val ue yen) (million yen) Cap Rate (million yen) Cap Rate (million yen) Cap Rate (million yen) (million yen) (million yen) (million yen) (million yen)

Portfolio properties at 8th FP end (continued)

61 COMFORIA LIV SHIBAURA CANAL 1,570 1,650 5.1% - - 1,690 4.9% 1,613 76 80 - 120 Japan Real Estate Institute

62 COMFORIA UENOHIROKOJI 1,050 1,110 4.8% - - 1,150 4.6% 1,076 73 60 - 100 Morii Appraisal & Investment Consulting,Inc.

63 COMFORIA KASUGATOMISAKA 2,912 3,050 4.7% - - 3,120 4.6% 2,986 133 137 - 207 Morii Appraisal & Investment Consulting,Inc.

64 COMFORIA HONKOMAGOME 1,344 1,420 4.9% - - 1,470 4.8% 1,381 88 76 - 126 Japan Real Estate Institute

65 COMFORIA MORISHITA 1,530 1,560 5.0% - - 1,650 4.7% 1,574 75 30 - 120 Morii Appraisal & Investment Consulting,Inc.

66 COMFORIA LIV KIBAKOEN 956 996 5.0% - - 1,050 4.7% 984 65 40 - 94 Morii Appraisal & Investment Consulting,Inc.

67 COMFORIA MEGURO CHOJAMARU 1,972 2,050 5.0% - - 2,150 4.8% 2,024 125 78 - 178 DAIWA REAL ESTATE APPRAISAL CO.,LTD

68 COMFORIA NISHIMAGOME 990 1,040 5.2% - - 1,080 4.9% 1,014 65 50 - 90 Japan Real Estate Institute

69 COMFORIA KITASANDO 4,268 4,490 4.9% - - 4,520 4.7% 4,365 154 222 - 252 Japan Real Estate Institute

70 COMFORIA YOYOGIUEHARA 1,560 1,620 4.9% - - 1,670 4.7% 1,590 79 60 - 110 Japan Real Estate Institute

71 COMFORIA SASAZUKA 1,789 1,860 5.0% - - 1,970 4.8% 1,844 125 71 - 181 DAIWA REAL ESTATE APPRAISAL CO.,LTD

72 COMFORIA SHINJUKUGYOENⅡ 1,806 1,850 4.7% - - 1,880 4.6% 1,846 33 44 - 74 Japan Valuers Co.,Ltd.

73 COMFORIA ICHIGAYAYANAGICHO 1,623 1,700 4.8% - - 1,770 4.6% 1,663 106 77 - 147 Morii Appraisal & Investment Consulting,Inc.

74 COMFORIA KAGURAZAKA 736 758 4.7% - - 793 4.5% 755 37 22 - 57 Morii Appraisal & Investment Consulting,Inc.

75 COMFORIA HIGASHIIKEBUKURO EAST 1,712 1,790 5.0% - - 1,950 4.9% 1,776 173 78 - 238 Japan Real Estate Institute

76 COMFORIA HIGASHIIKEBUKURO 1,132 1,170 4.9% - - 1,210 4.7% 1,164 45 38 - 78 Japan Real Estate Institute

77 COMFORIA SHINKOYASU 1,077 1,130 5.3% - - 1,160 5.1% 1,115 44 53 - 83 Japan Real Estate Institute

78 COMFORIA SHINSAKAE 1,653 1,730 5.4% - - 1,730 5.4% 1,773 -43 76 - 76 DAIWA REAL ESTATE APPRAISAL CO.,LTD

79 COMFORIA KITAHORIE 1,010 1,050 5.2% - - 1,050 5.2% 1,085 -35 40 - 40 DAIWA REAL ESTATE APPRAISAL CO.,LTD

80 COMFORIA NIBANCHO 1,621 1,630 4.6% - - 1,670 4.5% 1,660 9 9 - 49 Japan Real Estate Institute

Total assets under management 116,239 122,984 - - - 130,332 - 118,215 12,116 6,744 - 14,092

Ratio of unrealized gain 12.1% (Acquisition price basis)

38 Occupancy and Rent Rates

6th FP 7th FP 8th FP Invested area Items Feb. 2013 Mar. 2013 Apr. 2012 May. 2013 Jun. 2013 July. 2013 Aug. 2013 Sep. 2013 Oct. 2013 Nov. 2013 Dec. 2013 Jan. 2014 Feb. 2014 Mar. 2014 Apr. 2014 May. 2014 Jun. 2014 July. 2014

# of properties 53 53 53 53 53 53 53 54 54 54 55 55 77 79 79 79 80 80

Rentable units 3,128 3,128 3,128 3,128 3,128 3,128 3,128 3,261 3,261 3,261 3,317 3,317 4,752 4,969 4,969 4,969 5,011 5,011 Total portfolio Rent: Yen/Tsubo 12,829 12,817 12,822 12,817 12,811 12,801 12,794 12,546 12,543 12,531 12,482 12,483 12,807 12,704 12,710 12,701 12,724 12,715 (residential units)

Occupancy rate 95.3% 96.1% 95.2% 94.8% 95.5% 95.9% 95.4% 95.6% 95.8% 95.8% 95.9% 96.2% 95.5% 95.7% 94.7% 94.7% 95.0% 94.8%

# of properties 19 19 19 19 19 19 19 19 19 19 19 19 31 31 31 31 32 32

Rentable units 938 938 938 938 938 938 938 938 938 938 938 938 1,762 1,762 1,762 1,762 1,804 1,804 Central Tokyo Rent: Yen/Tsubo 13,602 13,581 13,598 13,607 13,605 13,575 13,561 13,557 13,552 13,511 13,509 13,509 13,846 13,860 13,874 13,867 13,905 13,880 (residential units)

Occupancy rate 94.7% 94.6% 93.2% 93.6% 94.5% 95.2% 94.1% 93.8% 94.6% 95.2% 95.4% 95.7% 95.5% 95.4% 95.2% 95.2% 95.0% 94.5%

# of properties 30 30 30 30 30 30 30 30 30 30 31 31 40 40 40 40 40 40

Rentable units 1,996 1,996 1,996 1,996 1,996 1,996 1,996 1,996 1,996 1,996 2,052 2,052 2,627 2,627 2,627 2,627 2,627 2,627 Sub-Central Tokyo Rent: Yen/Tsubo 12,660 12,664 12,659 12,647 12,639 12,637 12,629 12,627 12,630 12,622 12,556 12,563 12,683 12,690 12,674 12,672 12,685 12,693 (residential units)

Occupancy rate 95.6% 97.1% 96.6% 95.6% 96.3% 96.5% 96.4% 97.1% 96.8% 96.6% 96.3% 96.3% 95.4% 96.1% 94.5% 94.4% 94.7% 94.7%

# of properties444444444444555555

Tokyo Rentable units 194 194 194 194 194 194 194 194 194 194 194 194 230 230 230 230 230 230 Metropolitan Rent: Yen/Tsubo area 9,803 9,748 9,747 9,734 9,699 9,701 9,766 9,722 9,743 9,761 9,646 9,654 9,352 9,388 9,363 9,382 9,367 9,349 (residential units)

Occupancy rate 94.9% 95.9% 93.1% 94.3% 94.5% 94.4% 93.3% 93.6% 92.9% 91.1% 94.3% 95.1% 95.9% 94.7% 95.1% 95.5% 98.5% 97.2%

# of properties 11111133333

Rentable units 133 133 133 133 133 133 350 350 350 350 350 Other Major Cities Rent: Yen/Tsubo 8,018 8,014 8,015 7,998 7,999 8,009 8,530 8,549 8,520 8,514 8,521 (residential units)

Occupancy rate 93.2% 96.1% 96.2% 97.0% 98.1% 97.2% 96.0% 93.0% 93.8% 95.1% 95.9%

39 Overview of Portfolio (as at 8th FP end) (1)

Investment area Nearest train station (on foot)

7th FP Tokyo 23 Wards: 93.3%8th FP Tokyo 23 Wards: 92.5% 7th FP Avg. distance: 5.2 min 8th FP Avg. distance: 4.9 min

1.6% 1.0% 3.5% 3.2% 4.4% 3.2%

37.2% Minutes to Minutes to Investment 44.8% nearest train nearest train Investment 40.7% 40.4% area station (on station (on area foot) foot) 47.7% 57.7% 58.6%

56.1%

Under 5 mins 5 to 10 mins Over 10 mins Central Tokyo Sub-central Tokyo Tokyo Metropolitan area Other Major Cities (Note3) Graph data based on acquisition price. (Note1) Graph data based on acquisition price. (Note4) Refer to “References (*2) for calculation method of “Minutes to nearest train (Note2) Refer to “References (*2) for calculation method of “Investment area”. station (on foot)” and “Avg. distance”. Average building age Residential units per property

7th FP Avg. age: 7.5 years 8th FP Avg. age: 7.8 years 7th FP Avg. units/property: 60.08th FP Avg. units/property: 62.3

11.0% 10.7% 9.3% 14.5% 15.0% 24.9% 18.2% 13.8%

Average Average Residential Residential building age building age units per units per 32.7% property property 37.5% 33.8% 34.5%

64.1% 80.0%

Under 5 years 5 to 10 years Over 10 years Under 30 units Over 30 less than 50 units (Note5) Graph data based on build year of each asset under management (acquisition price Over 50 less than 100 units Over 100 units basis) at the end of each fiscal period. (Note7) Graph data represents ratio of residential units (excluding retail and office space) (Note6) Refer to “References (*2) for calculation method of “Average building age”. at each asset under management in the portfolio.

40 Overview of Portfolio (as at 8th FP end) (2)

Acquisition price per unit Area per unit (㎡)

7th FP Price per unit: ¥1.35Bn8th FP Price per unit: ¥1.45Bn 7th FP Area per unit: 34.9㎡ 8th FP Area per unit: 34.3㎡

7.8% 6.6% 18.4% 25.1% 5.9% 6.2% 33.7% 38.6% 13.0% 13.7% Acquisition Acquisition Area per unit Area per unit 51.7% 51.9% price per unit price per unit 19.5% (㎡) (㎡) 19.7% 21.7% 21.6% 16.6% 28.4%

Less than 1 Bil JPY Over 1 Bil JPY less than 1.5 Bil JPY Less than 30㎡ Over 30㎡ less than 40㎡ Over 40㎡ less than 50㎡ Over 1.5 Bil JPY less than 2 Bil JPY Over 2 Bil JPY Over 50㎡ less than 60㎡ Over 60㎡

(Note1) Graph data based on acquisition price. Rounded to the nearest tenths. (Note2) Graph data represents ratio of floor area (excluding retail and office space) to total rentable space. Unit type

7th FP Single/Compact: 82.1%8th FP Single/Compact: 84.9% *Room types

Under 30㎡~ 40㎡~ 50㎡~ 60㎡~ 70㎡~ Over 80㎡ 30㎡ 40㎡ 50㎡ 60㎡ 70㎡ 80㎡ 2.3% 1.9% 13.6% 11.4% STUDIO SSCCFFF 1.8% 1BED SCCCFFF 2.0% 41.7% 44.4% 2BED CCCL L L Room type Room type 3BED LLLLL 4BED LLL 40.4% 40.5% STUDIO: 1K, one room 1BED: 1DK,1LDK,1LDK+service room and/or closet space, etc. 2BED: 2DK,2LDK,2LDK+service room and/or closet space, etc. Single（S） Compact（C） Family（F） Large（L） Stores 3BED: 3DK,3LDK,3LDK+service room and/or closet space, etc. (Note3) Graph data represents ratio of rentable space by room type. 4BED: 4DK,4LDK,4LDK+service room and/or closet space, etc. (Note4) Refer to the right chart with regards to room type.

41 Status of Interest-bearing Debt (as at 8th FP end)

Loan status

Loan amount Fixed/ Interest Drawdown Maturity Loan amount Fixed/ Interest Drawdown Maturity Type Lender Type Lender (million yen) Variable (%) date date (million yen) Variable (%) date date Development Bank of Japan 3,570 1.34500 Mizuho Bank 1,000 Mitsubishi UFJ Trust and Banking 3,570Fixed 1.33500 The Bank of Tokyo-Mitsubishi UFJ 1,000 23-Mar-11 23-Mar-16 Sumitomo Mitsui Trust Bank 1,785 (*) Mitsubishi UFJ Trust and Banking 1,000 Fixed 1.03715 0.88240 4-Feb-14 31-Jan-21 Tokyo Tomin Bank 1,000 Sumitomo Mitsui Trust Bank 1,000 (*) Mizuho Bank 3,570 Development Bank of Japan 1,000 The Bank of Tokyo-Mitsubishi UFJ 3,570 Fixed Sumitomo Mitsui Banking Corporation 500 1.03715 23-Mar-11 23-Mar-19 Sumitomo Mitsui Trust Bank 3,570 (*) Mizuho Bank 670 Sumitomo Mitsui Banking Corporation 1,785 The Bank of Tokyo-Mitsubishi UFJ 670 Development Bank of Japan 1,090 Mitsubishi UFJ Trust and Banking 670 Fixed 0.60150 30-Jun-14 30-Jun-20 Mizuho Bank 1,090 Long term loans Sumitomo Mitsui Trust Bank 670 (*) Sumitomo Mitsui Trust Bank 1,090 Development Bank of Japan 670 Fixed The Bank of Tokyo-Mitsubishi UFJ 1,090 1.41200 3-Feb-12 29-Sep-17 Sumitomo Mitsui Banking Corporation 350 (*) Mitsubishi UFJ Trust and Banking 1,090 Mizuho Bank 910 Sumitomo Mitsui Banking Corporation 550 The Bank of Tokyo-Mitsubishi UFJ 910 Tokyo Tomin Bank 300 Mitsubishi UFJ Trust and Banking 910 Fixed 0.90100 30-Jun-14 30-Jun-22 Sumitomo Mitsui Trust Bank 910 (*) Mitsubishi UFJ Trust and Banking 2,000 Fixed 0.79500 4-Sep-13 31-Aug-18 Long term loans Development Bank of Japan 910 Mizuho Bank 1,350 Sumitomo Mitsui Banking Corporation 450 The Bank of Tokyo-Mitsubishi UFJ 1,350 Fixed Total of Loans 61,920 0.67075 30-Sep-13 30-Mar-18 Mitsubishi UFJ Trust and Banking 1,350 (*) Sumitomo Mitsui Banking Corporation 600 Bond amount Fixed/ Interest Redemption Type Bond Name Issue date (million yen) Variable (%) date Development Bank of Japan 1,350 Fixed 0.90487 30-Sep-13 30-Sep-19 Investment The Investment Corporation 3,000Fixed 0.64000 30-Jul-14 30-Jul-21 Mizuho Trust & Banking 2,000 Corporation Bonds 1st unsecured bond The Norinchukin Bank 1,500 Total of Bonds 3,000 Fixed The Bank of Fukuoka 1,000 0.37990 4-Feb-14 31-Jan-17 (*) The 77 Bank 500 Total of Interest Bearing Debt 64,920 The Daishi Bank 500 Mizuho Bank 1,000 The Bank of Tokyo-Mitsubishi UFJ 1,000 Fixed Mitsubishi UFJ Trust and Banking 1,000 0.60700 4-Feb-14 31-Jan-19 Sumitomo Mitsui Trust Bank 1,000 (*) Development Bank of Japan 1,000 *Note: Interest rate shown above is fixed interest rate as per interest swap agreements. Sumitomo Mitsui Banking Corporation 500

Credit rating

Rating agency Type Grade Outlook

Japan Credit Rating Agency Long-term issuer rating A＋ Stable

42 Unitholders (as at 8th FP end)

Unitholder by issues held Major unitholders (Top 10)

Foreign entities Unitholders Units held Holding ratio 6,136 units 6.1% Individuals / others 1 Japan Trustee Services Bank, Ltd. (trust account) 30,142 29.94 16,286 units 16.2% 2 Tokyu Land Corporation 10,086 10.01 Other domestic entities 16,527 units Financial institutions 3 Master Trust Bank of Japan, Ltd. (trust account) 6,952 6.90 16.4% 61,225 units 60.8% Financial Instruments Business 4 The Nomura Trust & Banking Co., Ltd. (trust account) 4,620 4.58 Operators Trust & Custody Services Bank, Ltd. (securities trust investment 5 4,101 4.07 488 units account) 0.5% Trust & Custody Services Bank, Ltd. (taxable trust money 6 2,408 2.39 account)

7 Asahi Fire & Marine Insurance 2,400 2.38

Nomura Bank (Luxembourg) S.A. Unitholder by ratio 8 2,194 2.17 (Standing Proxy: Sumitomo Mitsui Banking Corporation)

Financial institutions Financial Instruments Business 9 Nippon Tosho Fukyu Co., Ltd. 1,030 1.02 71 entities Operators 1.3% 19 entities 10 The Yamato Shinkin Bank 1,000 0.99 0.3% Foreign entities Other domestic entities 10 Credit Saison 1,000 0.99 78 entities 155 entities 1.4% 2.7% Total 65,933 65.49

(Note1) Figures shown above are rounded down to the nearest hundredths. (Note2) All data based on the unitholder registry as at Jul. 31, 2014.

Individuals / others 5,349 entities 94.3%

43 Historical Unit Price

Historical unit price and trading (１-Aug-2013 ~ 31-Jul-2014) (JPY) (Unit) 200,000 Volume Unit Price 4,800 (Right Axis) 175,000 4,000 150,000 Record high : ¥192,250 3,200 125,000 Record low : ¥146,000 1-day avg. trading : 1095.9 units 100,000 2,400

75,000 1,600 50,000 800 25,000

0 0 8/1 8/29 9/30 10/29 11/27 12/26 1/30 2/28 3/31 4/28 5/29 6/26 7/25 Comparable unit price (1-Aug-2013 ~ 31-Jul-2014) (Unit) Unit Price TSE REIT Index TSE Residential REIT Index 125.0

120.0

115.0

110.0

105.0 Unit price : ¥188,500 (+ 18.6%) 100.0 TSE REIT Index : 1608.10pt (+ 18.5%) 95.0 TSE REIT Residential Index : 2051.29pt (+ 18.9%) 90.0 8/1 8/29 9/30 10/29 11/27 12/26 1/30 2/28 2/28 3/31 4/28 5/29 6/26 7/25

(Note1) Prices as at 31-Jul-2014. Figures for the 7th and 8th fiscal periods have been adjusted to reflect the 4-for-1 unit split effective as of 1-Aug-2014. (Note2) Comparable unit prices are benchmarked at 100 points starting from the closing price on the beginning of the 7th fiscal period (1-Aug-2013).

44 Agenda of the 3rd Unitholders’ Meeting

Date & Venue

■ Date: 23-April-2014 (Wednesday) 10:00~ ■ Venue: Shibuya Excel Hotel Tokyu “Planets Room” 6th Floor Agenda

■ Shown below are key proposals raised during the meeting.

1. Resolution on amendments of articles of incorporation

Main point of amendments of Articles of Incorporation are as follows:

● Made key amendments in light of legislation to partially amend the Financial Instruments and Exchange Law and other relevant regulations on investment trusts and J-REITs.

● Revised rules to enable changes to the term of office for the executive directors and supervisory directors within limits provided in low.

● Revised rules in adherence to relevant REIT regulations and made minor changes to the wording.

2. Resolution on appointment of an executive director

Hiroyuki Tohmata was appointed as an executive director. 3. Resolution on appointment of an substitute executive director Nobuhide Kashiwagi was appointed as an substitute executive director.

4. Resolution on appointment of two supervisory directors Yoshihiro Kataoka and Koji Yamamoto were appointed as supervisory directors.

45 Governance

Governance Structure

Decision-making flowchart in relation to asset acquisition The Asset Management Company ensures impartiality in decision-making by inviting outside real-estate appraisers to the Investment Committee.

Proposal by the Investment Operation Department Selecting candidates for assets to be acquired / Conducting detailed due diligence / Proposing acquisition plans

Approval by the Compliance Officer Examine compliance issues, considering laws, regulations, the Articles of incorporation, and the bylaws

Deliberation and resolution  The committee members are inhouse participants of the Asset by the Investment Committee Management Company and an outside real-estate appraiser  The resolution shall be adopted unanimously by all committee members

Deliberation and resolution by the Compliance Committee  Committee meetings shall be held to discuss transactions with interested parties  The committee members are inhouse participants of the Asset Deliberation and resolution by the Board of Directors Management Company and outside experts conversant with compliance (lawyers or certified public accountants)  The resolution shall be adopted by a two-thirds majority of the members present, including outside experts and Compliance Officer Report to the Investment Corporation

Aligning interests of unitholders with those of TLC To serve the interests of both the Investment Corporation and TLC, the Asset Management Company has received notice outlining TLC’s intentions as follows: ①TLC will hold Approx. 10% of the investment units issued before the listing by the Investment Corporation for five years after the listing. (Note) : Holdings via affiliates of TLC are included. ② In the event of a subsequent offering following the listing, TLC will seriously consider purchasing a portion of the additional issuance.

Hold approx. 10% of the issued investment units during listing process.

46 Overview of CRR

Company Profile Overview of Organization

 Name: Comforia Residential REIT, Inc (CRR) Asset Custodian Asset Management General Administration CRR  Fund type: Closed-end Company (operation of the administrative instrument)  Asset management company: Transfer agent TLC Comforia Investment Management INC.

Mitsubishi UFJ Trsut  Address: 1-16-3 Dogenzaka, Shibuya-ku, Tokyo and Banking

 Officers: Hiroyuki Tohmata, Executive Director (President and CEO of TLC Comforia Investment Management INC.) Asset custody Yoshihiro Kataoka, Supervising Director Administrative service Investors’ Meeting (lawyer) Transfer agency Koji Yamamoto, Supervising Director Asset management Accounting service (CPA / tax accountant) General administration  History: June 2010 Registration of incorporation (accounting, etc.) Board of Directors Registration by the prime Sponsor support minister Heiseikaikeisha Tax (registration number: Director of Corporation Kanto Finance Bureau No. 71) August 2010 Commenced business Fiscal Issuing and Payment Auditor Agency February 2013 Listed on the Real Estate Sponsor

Investment Trust Securities Ernst & Young General administration Market of Tokyo Stock ShinNihon LLC (corporation bond) Exchange Sumitomo Mitsui Trust Bank

47 Overview of Asset Management Company

Company Profile Overview of Organization

 Name: TLC Comforia Investment Management INC. Shareholder’s meeting  Established: October 2009

 Capital: 200 million yen Corporate Auditor

 Address: 1-16-3 Dogenzaka, Shibuya-ku, Tokyo Board of  Shareholder: Tokyu Land Corporation100% Directors

 # of directors and employees: Investment Compliance 26 (full time: as of Jul 31, 2014) Committee Committee

 Business description: President & CEO Investment management Compliance Officer  Registrations/Licenses Internal Audit Compliance Office Financial Instruments Business Firm, granted by the Director of the Kanto Regional Finance Bureau (Financial Instruments) Registration No. 2370 Discretionary Transaction Agent granted by the Investment Finance & Strategic Minister of Land, Infrastructure, Transport and Operation Accounting Planning Tourism, Registration No. 65 Department Department Department Building Lots and Building Transactions Business License, granted by the Governor of Tokyo (1) No. 91139

48 References

(*1) “NOI yield (appraisal basis)”, “NAV/unit” are calculated as follows:

 NOI yield (appraisal basis) = NOI in appraisal report / acquisition price  NAV/unit = {total net assets (after distribution) + market value of real estate, etc. (real estate appraisal value) – book value of real estate, etc. } / investment units issued

(*2) Specific investment areas defined as “Investment area” by the Investment Corporation are as follows: Category Investment Area Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku, Central Tokyo 5 major wards and Shibuya-ku Dense residential districts outside of Sub-central Tokyo Other Tokyo wards (excluding above) the 5 major wards Tokyo Metropolitan Dense residential districts in all other All other areas within Tokyo Metropolitan area Tokyo Metropolitan areas boundaries expecting strong demand

Other major cities Dense residential districts in ordinance-designated cities

 Time required to arrive at the property on foot in “Minutes to Nearest Train Station,” is calculated on the assumption that it takes one minute to walk 80 meters.  “Average distance” is derived from a weighted average based on the acquisition price.  “Average Building Age” is derived from a weighted average of building age of each property and acquisition price.

49 References

(*3) “Interest-bearing debt balance”, “Average maturity,” ”Weighted average interest rate”, “Total LTV”, and “Appraisal LTV” are calculated as follows:  “Interest-bearing debt balance” is the total volume of borrowings and REIT bonds.  “Average maturity” is derived from the weighted average of maturity on each loan and REIT bond from the drawdown date to the repayment date prescribed in the respective loan agreement and REIT bond agreement.  “Weighted average interest rate” is derived from the weighted average of interest rates on each loan and REIT bonds as at the end of each fiscal period in accordance with borrowing amount. If interest rates are fixed under an interest rate swap agreement, then the fixed interest rate was used for the calculation.  “Total LTV” is calculated by dividing the interest-bearing debt balance as at the end of each fiscal period by the total assets on the balance sheet.  “Appraisal LTV” is calculated by dividing the interest-bearing debt balance as at the end of each fiscal period by the total appraisal of real estate assets.

(*4) Based on statistics from National Institute of Population and Social Security Research‘s “Household statistical projection for Japan (by prefecture) Apr. 2014 compiled from a survey conducted in 2005. Post-2010 figures are projections. Areas in “Tokyo Metropolitan area” are Tokyo-to, Saitama-ken, Kanagawa-ken and Chiba-ken.

50 Disclaimer

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COMFORIA Residential Investment Corporation and TLC COMFORIA Investment Management do not guarantee or warrant the accuracy and safety of the information provided in this document, and shall not be liable for updating the information provided.

Please be advised that forward-looking statements provided herein may be subject to change or deletion without prior notice.

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