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August 2013 (23rd) Period Results CLSA JAPAN FORUM 2014 Feb. 24‐27, 2014 Security code 8953 http://www.jrf‐reit.com/english/index.html Table of Contents 1. Features of JRF 2. Stable Portfolio and Solid Financial Base 3. JRF’s Growth Strategy 4. Appendix Disclaimer The contents of this document, including summary notes, quotes, data and other information, are provided solely for informational purposes and not intended for the purpose of soliciting investment in, or as a recommendation to purchase or sell, any specific products. Please be aware that matters described herein may change or cease to exist without prior notice of any kind. This document contains forward-looking statements and anticipations of future results, based on current assumptions and beliefs in light of currently available information and resources. Risks and uncertainties, both known and unknown, including those relating to the future performance of the retail market in Japan, interest rate fluctuations, competitive scenarios, and changing regulations or taxations, may cause performance to be materially different from those explicitly or implicitly expressed in this document. With respect to any and all terms herein, including without limitation, this document, the information provided is intended to be thorough. However, no absolute assurance or warranties are given with respect to the accuracy or completeness thereof. Unless otherwise specified, this document was created based on Japanese accounting system. Neither JRF nor Mitsubishi Corp.-UBS Realty Inc. (MCUBSR) shall be liable for any errors, inaccuracies, loss or damage, or for any actions taken in reliance thereon, or undertake any obligation to publicly update the information contained in this document after the date of this document. Asset Management Company: Mitsubishi Corp.-UBS Realty Inc. (Financial Instrument Firm under License No. 403 of the Director of Kanto Local Finance Bureau) 1 Features of JRF G‐Bldg. Ginza 01 2 1. Features of JRF Features of JRF We specialized in investing in a wide variety of retail properties varying from large-scale retail properties to road-side stores and specialty buildings in favorable locations. Japan Retail Fund Investment Corporation 3 1. Features of JRF Features of JRF 1. Stable operation supported by large asset size > The largest listed J‐REIT that specializes in retail properties, and the third largest among all J‐REITs by asset size based on total acquisition price > Large asset size reduces the effect of volatility of individual properties and enables more stable asset management 2. Balanced portfolio with stable cash flows > High proportion of tenants are under long‐term fixed rate contracts and high occupancy rate results in stable cash flows > Diversification by region, location and types of retail properties ensures stable rental revenues and captures growth prospects 3. Proactive SC Management 4. Long‐term stable financial strength 5. Sponsor support from Mitsubishi Corporation group > Our track record of proactive management and operations of retail properties over 11 years with 84 properties and 1,040 tenants (after public offering in 2013) > AA‐ (Stable) rating(Note ) and stable financing strategy focusing on long‐term borrowings > Fully utilizes the sponsor’s development capability and extensive network in real estate and retail sectors (Note) Issuer rating by Rating and Investment Information, Inc. (R&I) as of October 15, 2013. Japan Retail Fund Investment Corporation 4 1. Features of JRF An 11‐year Track Record since Listing Continuous expansion of asset size since our listing 84 76 70 6th PO 77 49 45 4th PO 41 3rd PO 4 800 billion JPY Approx. Asset size (■ are non‐core assets Note1, 2) Number of properties 48 50 50 59 59 9th 70 Number of properties 76 84 PO 8th PO 7th PO Merger 42 (Note 1) “Non‐core assets” means office and residential properties acquired in connection with the LaSalle Japan REIT Inc. (LJR). (Note 2) Non‐core assets (18 properties) were all sold on September 3, 2010 for 33.2 billion JPY. (Note 3) Asset size is truncated to the nearest 100 million JPY. 37 2nd PO IPO Asset size (Billion JPY) 32 4 16 20 24 34 5th PO 10 Distributions per unit and occupancy rate Occupancy rate (at the end of each fiscal period) (%) Distributions per unit (JPY) Occupancy ratio 99.8% Distribution per Unit (Forecast) 4,000 yen level (Note 1) On March 1, 2010, we effected a four‐to‐one unit split. Distributions from the 1st fiscal period to the 16th fiscal period are divided by four. (Note 2) Occupancy rate is rounded to the first decimal place. (Note 3) Occupancy rate for the 17th fiscal period ended August 31, 2010, excludes non‐core assets. Japan Retail Fund Investment Corporation 5 1. Features of JRF Trend of Business Results Sustainable growth of rent NOI and DPU through PO in three consecutive years Aug.2011 Period (19th) Feb. 2012 Period (20th) Aug. 2012 Period (21st) Rent NOI 25,642 26,130 28,939 29,375 ( 100.0 ) ( 108.3 ) ( 107.9 ) ( 117.5 ) ( 119.7 ) ( 132.6 ) ( 134.6 ) 15,781 16,954 17,128 18,552 18,782 20,609 20,755 ( 100.0 ) ( 107.4 ) ( 108.5 ) ( 117.6 ) ( 119.0 ) ( 130.6 ) ( 131.5 ) 6,005 5,502 ( 100.0 ) 3,556 (Note 3) DPU (JPY) Units issued and outstanding (units) Public Of f ering 23,559 ( 100.0 ) Net income Aug. 2014 Period (25th) (Forecast) 23,642 ( 100.0 ) Ordinary income Feb. 2014 Period (24th) (Forecast) 21,824 8,546 Operating income Aug. 2013 Period (23rd) Public Of f ering Public Of f ering Operating revenue Feb. 2013 Period (22nd) 5,338 (Note 4) ( 62.5 ) 2,827 (Note 4) ( 47.1 ) 2,312 (Note 4) ( 42.0 ) 3,673 (Note 5) 9,602 ( 112.4 ) 7,220 ( 120.2 ) 7,220 ( 131.2 ) 3,840 10,573 10,665 12,032 12,065 ( 123.7 ) ( 124.8 ) ( 140.8 ) ( 141.2 ) 8,042 8,171 ( 133.9 ) ( 136.1 ) 8,041 9,478 ( 157.8 ) 8,170 ( 146.1 ) ( 148.5 ) 3,868 9,400 ( 170.8 ) 3,929 4,073 9,453 ( 157.4 ) 9,452 ( 171.8 ) 4,095 ( 100.0 ) ( 103.3 ) ( 108.0 ) ( 108.8 ) ( 110.5 ) ( 114.5 ) ( 115.2 ) 1,688,198 1,880,198 1,880,198 2,079,198 2,079,198 2,308,198 2,308,198 ( 100.0 ) ( 111.4 ) ( 111.4 ) ( 123.2 ) ( 123.2 ) ( 136.7 ) ( 136.7 ) (Note 1) Million JPY unless otherwise noted. (Note 2) Numbers in brackets are relative values of each period compared to values of Aug. 2011 (19th ) period. (Note 3) Extraordinary loss related to the Great East Japan Earthquake is added back. (Note 4) Loss on disposal of Hakata Riverain is recorded as operating expense. (Note 5) Reserve for dividends (Negative goodwill) is appropriated for loss on disposal of properties, etc. Rent NOI +31% over 3 years (25th period (Forecast) / 19th period) Distribution per unit (Note) +15% over 3 years (25th period (Forecast) / 19th period) (Note) Extraordinary loss related to the Great East Japan Earthquake is added back Japan Retail Fund Investment Corporation 6 1. Features of JRF Unit Price Performance Unit price has risen steadily through Public Offering in 3 consecutive years October, 2013 Property acquisitions through PO 8 properties 73.6 billion JPY October, 2012 Property acquisitions through PO September‐October, 2011 7 properties 52.1 billion JPY Property acquisitions through PO 12 properties 46.0 billion JPY As of Feb. 4, 2014 JRF 199,000 JPY 1.7x As of Feb. 4, 2014 TSE REIT Index 1,444.72 1.4x As of Sep. 1, 2011 JRF TSE REIT Index : 114,600 JPY : 987.25 (Note) Figures show relative values of unit price with comparison to closing unit price in TSE as of September 1, 2011. (Supposing the closing unit price on September 1, 2011 is 100) (Source) Created based on Bloomberg data. Japan Retail Fund Investment Corporation 7 Round1 Hiroshima Stable Portfolio and Solid Financial Base 8 2. Stable Portfolio and Solid Financial Base Portfolio Map (84 properties as of Oct. 15, 2013) We consider the regional diversification of our portfolio and own a wide variety of retail properties across Japan Newly acquired properties during the 24th period Urban multi‐tenant retail properties Urban single‐tenant retail properties NEW NEW Suburban multi‐tenant retail properties Suburban single‐tenant retail properties NEW NEW Osaka, Nagoya and surrounding areas: 29 properties NEW NEW SM‐14 KAMISHIN PLAZA Gifu Kyoto Hyogo Shiga Nara Osaka NEW US‐18 G‐Bldg. Shinsaibashi 03 Japan Retail Fund Investment Corporation Aichi NEW US‐16 Round1 Kyoto Kawaramachi Other major cities: 12 properties 9 2. Stable Portfolio and Solid Financial Base Stable Portfolio (1) Stable rent income by diversified portfolio By region By asset type By property size (based on appraisal value) (based on appraisal value) (based on appraisal value) Greater Tokyo Metropolitan area Urban / Suburban Specified properties Approx. 50% 3:7 up to Other major cities 5.4% 5.4% 12.3% Urban 30.6% Greater Tokyo Metropolitan area Osaka, Nagoya and surrounding areas 49.1% Suburban 69.4% 38.6% A Higashi‐Totsuka Aurora City B Nara Family C KAWASAKI Le FRONT D mozo wonder city E AEON MALL Musashi Murayama F AEON MALL Tsurumi Ryokuchi Japan Retail Fund Investment Corporation 5.4% 4.9% 4.6% 4.5% 3.9% 3.4% G G‐Bldg. Shinsaibashi 03 H GYRE I AEON MALL Yachiyo Midorigaoka J AEON MALL Itami K Others 3.0% 2.9% 2.9% 2.4% 62.1% 10 2. Stable Portfolio and Solid Financial Base Stable Portfolio (2) Stable lease contracts and diversified maturity date Average remaining term of lease and rent structure (based on annual rent) Average remaining term of lease (Note) 7.0 years Expiry of lease contract Fixed rent over 80% (based on annual rent) (Note) Period remaining from Aug. 31, 2013. For newly acquired properties, the figure is calculated as of the acquisition date. Weighted‐average based on annual rent. Japan Retail Fund Investment Corporation 11 2. Stable Portfolio and Solid Financial Base Solid Financial Base (1) Stable financial base by long‐term liability, fixed interest Financial indicators (Feb. 2014 period (Forecast)) Long‐term debt rating LTV (excl. tenant leasehold and security deposits) Status of lenders (as of Cot. 15, 2013) AA-(Stable) Rating and Investment Information, Inc. (R&I) 44.2% Long‐term liability ratio 98.5% Fixed interest ratio 73.1% Average maturity 4.5 years Average debt cost 1.40% Japan Retail Fund Investment Corporation 12 2. Stable Portfolio and Solid Financial Base Solid Financial Base (2) Diversification of maturity dates and maintaining commitment line Diversifying debt maturities while keeping amount of repayment below the commitment line for each period Commitment line: 50.0 billion JPY NEW Dec. 30, 2013 Early Repayment of Short‐term Loan NEW Dec. 18, 2013 Issuance of Investment Corporate Bond Issue amount: 7,500 million JPY Interest rate: 1.108% / year Japan Retail Fund Investment Corporation 13 JRF’s Growth Strategy G‐Bldg. Shinsaibashi 03 14 3. JRF’s Growth Strategy Shopping Center (SC) Management Approach to improve competitiveness of properties Retail property Approach 1 Inviting attractive tenants Introduce tenants which match the trend and locality. Study the suitable tenant‐mix for customers Approach 2 Creating attractive facilities Attracting customers Enhancing profitability & Increasing sales Improve visibility and convenience by renovation Increase sales space through new construction Approach 3 Reduction of operating cost Building maintenance fee, utility expenses, and etc. Japan Retail Fund Investment Corporation 15 3. JRF’s Growth Strategy Internal Growth Strategy Proactive and constant action through SC management Further expansion of our property management platform With over 11 years of operation, we have established our position as one of the largest operators of retail properties in terms of leasable area Configuring middle and long term relations with various types of tenants As of the end of Aug. 2002 (1st period) • Number of properties • Leasable area As of the end of Aug. 2013 (23rd period) 4 properties Approx. 180,000 m2 • Number of tenants 5 tenants After PO 84 76 properties Approx. 3,000,000 m2 Approx. 908 tenants properties 3,100,000 m2 1,040 tenants SC management and its underlying operations We will conduct highly sophisticated SC Management by effectively coordinating the three relevant functions below: Asset Management Function Number of staff for operation 21staff (Retail Division Total :40 staff) Organized “SC Management Development Office” on Oct. 11, 2013 Control of planning, and implementation of managed plans Engineering Function Adequate maintenance and administration of hardware Organic collaboration Leasing Function Realization of attractive tenant mix Japan Retail Fund Investment Corporation 16 3. JRF’s Growth Strategy SC Management as our Growth Strategy Heading for external growth as well as internal growth maximizing our SC Management skills JRF’s strength Internal growth strategy External growth strategy Proactive actions for large‐scale renewals and shopping center management Oyama Yuen Harvest Walk Acquisitions of large‐scaled and multi‐tenanted SCs which require first‐class SC management skills mozo wonder city KAMISHIN PLAZA KAWASAKI Le FRONT Japan Retail Fund Investment Corporation 17 3. JRF’s Growth Strategy A Case of SC management Oyama Yuen Harvest Walk: Renewal Image Concept of environmental designs Purpose of renewal Create a solid position as the best stores in the local community Enhance repeat rates (more customers from neighboring business regions) Solicit new customers from a wide rage of business regions Increase sales of existing tenants by attracting more customers Provide long‐term upside potential with more attractive facilities ~ SHOPPING IN THE PARK ~ Build an environment where customers can enjoy shopping in a parklike atmosphere by strengthening the advantages of an open‐air shopping mall Renewal implementation place A Offer a broader plaza environment (Relaxation Space) B Extend and/or renovate existing buildings C Rezone the property D Improve the environment by planting trees and installing sign boards and by other means E Road relocation on the premises Inviting new, promising tenants Inviting OLD NAVY (opening its first store in Tochigi Prefecture), UNIQLO, MUJI etc. Japan Retail Fund Investment Corporation 18 3. JRF’s Growth Strategy External Growth Strategy (1) Acquisitions of prime retail properties utilizing our extensive deal sources Extensive deal sources Our acquisition track record as the largest listed J‐REIT that specializes in retail properties Aggregate acquisition price since listing Approx. 890billion JPY Acquisition channels for all properties acquired Non‐sponsor –related companies Merger with LJR 87.8 billion JPY Sponsor‐related companies 9.8% 31.3% 524.8 billion JPY 58.8% 279.6 billion JPY Japan Retail Fund Investment Corporation 19 3. JRF’s Growth Strategy External Growth Strategy (2) Selective investment in a wide variety of properties Investment target Suburban Area Location Large Other suburban areas Suburbs of government‐ designated cities Urban Area Areas surrounding three major cities City‐centers of government‐designated cities(Note1) Areas surrounding major stations located in three major cities (Note2) Central retail areas of three major cities Large‐scale retail properties, the largest class in the relevant area Building size Examples: Large‐size shopping mall Medium‐to‐large size supermarkets Small Retail properties near densely‐populated areas Retail properties in favorable locations adjacent to major stations Examples: Specialty buildings Department stores Service‐related facilities Examples: Neighborhood Shopping Centers Service‐related facilities Small‐to‐medium size supermarkets Road‐side stores Supermarkets Road‐side stores and specialty buildings in favorable locations Examples: Specialty stores Brand shops Apparel sales and distribution centers Service stores (Note 1) A government‐designated city is a Japanese city that has a population greater than 500,000 and has been designated as such by an order of the cabinet of Japan under Article 252, Section 19 of the Local Autonomy Law. (Note 2) These three cities are Tokyo, Osaka and Nagoya. Japan Retail Fund Investment Corporation 20 3. JRF’s Growth Strategy External Growth Strategy (3) Improvement in portfolio profitability and stability through property replacement Acquisitions of prominent properties Objectives • Increasing portfolio NOI yield • Enhancing portfolio quality • Improving portfolio balance Property replacement Real estate market Property disposition at optimum timing We plan to use the proceeds from the disposition to acquire new properties in the future. Disposal properties Asset type (area) Suburban (Nagoya area) Urban (Sapporo area) Urban (Tokyo area) Urban (Tokyo area) Property name AEON TOWN Ogaki G DINING Sapporo G‐bldg. Jingumae 04 G‐bldg. Jingumae 05 Disposition date Mar. 24, 2014 (Schedule) Jan. 31, 2014 Disposition price 3,430 million JPY 6,560 million JPY (Note ) Japan Retail Fund Investment Corporation (Note) We have not obtained the necessary permission from the purchaser for the disclosure of each disposition price. 21 3. JRF’s Growth Strategy JRF’s Growth Strategy Strive to achieve upside growth conducting strong strategies External Growth Strategy Internal Growth Strategy 1 2 3 Proactive and constant actions through SC Management Dynamic asset value enhancement program Stability Growth Growth & Stability Tenant relations and leasing management Financing Strategy 1 2 Acquisitions of prime retail properties utilizing our extensive deal sources 3 Improvement in portfolio profitability and stability through property replacement Selective investment in a wide variety of properties 1 2 Stable financing operation and effective control of debt cost Diversification of maturity dates and maintaining commitment line ・・・we aim to continuously grow our distribution per unit Japan Retail Fund Investment Corporation 22 Appendix Colline Bajikouen 23 4. Appendix Overview of New Acquisitions Newly acquired properties by Public offering in 2013 Acquisition conditions Property name 1 KAWASAKI Le FRONT 2 Number of tenants Deal sources Acquisition price (A) Appraisal value (B) (A) / (B) NOI yield NOI yield (before (after depreciation) depreciation) 68 Independent network 30,000 million JPY 35,200 million JPY 85.2% 6.2% 5.0% G‐Bldg. Shinsaibashi 03 1 Independent network 22,300 million JPY 23,100 million JPY 96.5% 4.3% 3.9% 3 G‐bldg. Ginza 01 8 Mitsubishi Corporation group 5,500 million JPY 5,780 million JPY 95.2% 4.2% 4.0% 4 Round 1 Hiroshima 1 CRE approach 2,970 million JPY 3,610 million JPY 82.3% 7.2% 5.9% 5 Round 1 Kyoto Kawaramachi 1 2,800 million JPY 3,050 million JPY 91.8% 5.9% 5.0% 63,570 million JPY 70,740 million JPY 89.9% 5.4% 4.6% (Reference) For the fiscal period ended Feb 28, 2013 Average for urban retail properties 4.1% 3.4% Urban retail properties 6 7 8 KAMISHIN PLAZA Summit Store Nakano Minamidai Colline Bajikouen Suburban retail properties Newly acquired properties Japan Retail Fund Investment Corporation CRE approach Mitsubishi Corporation group Total / Average 44 1 8 Mitsubishi Corporation group 3,900 million JPY 4,160 million JPY 93.8% 7.2% 5.9% Mitsubishi Corporation group 3,100 million JPY 3,180 million JPY 97.5% 5.0% 4.5% 3,100 million JPY 3,580 million JPY 86.6% 5.2% 4.4% 10,100 million JPY 10,920 million JPY 92.5% 5.9% 5.0% (Reference) For the fiscal period ended Feb 28, 2013 Average for suburban retail properties 5.5% 3.7% 90.2% 5.5% 4.7% (Reference) For the fiscal period ended Feb 28, 2013 Average for portfolio total 5.2% 3.6% Independent network Mitsubishi Corporation group Total / Average Total / Average 8 properties 73,670 million JPY 81,660 million JPY 24 4. Appendix Overview of New Acquisitions 1 KAWASAKI Le FRONT Japan Retail Fund Investment Corporation C Retail properties in favorable locations adjacent to major stations Growth‐type Occupancy rate 98.2% 25 4. Appendix Overview of New Acquisitions Statistical Comparison of Kawasaki City Acquisition Highlights A large‐scale, multi‐tenant retail complex situated next to the JR Kawasaki Station, one of Japan's busiest rail hubs Market Kawasaki city is ranked ninth in terms of population and the population of Kawasaki is continuing to grow(Note1) A retail trade area population of approximately 440,000 within a three‐kilometer radius and 980,000 within a five‐kilometer radius Kawasaki city ranks third in terms of population density and sixth in terms of annual sales per sales floor for large scale retail properties(Note 1) Aerial View Location Situated in front of the JR Kawasaki Station, one of Japan's busiest stations (approximately 370,000 passengers per day) JR Kawasaki Station Facility Boasts one of the largest revenues (over 30 billion JPY per year) and floor space (42,500 m2) among the retail properties at the station's east entrance A large scale multi‐tenant retail facility that houses a major fashion‐oriented retailer and a large home appliance retailer, as well as other businesses and shops that cater to the needs of various customers Floor Map Acquisition price NOI yield NOI yield (before depreciation) (after depreciation) 6.2% 5.0% 30,000 million JPY Appraisal value 35,200 million JPY Average remaining term of lease (Note 2) 5.8years Location Kawasaki Ward, Kawasaki, Kanagawa Year of initial construction 1988 Land area (Note 3) 15,710.29m2 Floor area (Note3) Main 88,818.38 m2 Parking lot tower 5,705.63 m2 Total 94,524.01 m2 No. of tenants 68 Key tenant Yodobashi Camera, Marui (Note 1) Among 23 wards of Tokyo as a total and government‐designated cities in Japan. (Note 2) End tenant basis as for KAWASAKI Le FRONT (Note 3) Land area includes the land with superficies (880.31m2). Floor area includes area for co‐owners (2.78%). Japan Retail Fund Investment Corporation 26 4. Appendix Overview of New Acquisitions 2 G‐Bldg. Shinsaibashi 03 Japan Retail Fund Investment Corporation D Road‐side stores and specialty buildings in favorable locations Income‐type Occupancy rate 100.0% 27 4. Appendix Overview of New Acquisitions Shinsaibashi‐suji Shopping Arcade Area Map Shinsaibashi‐suji Shopping Arcade Acquisition Highlights Located at the front end of a landmark shopping arcade in western Japan, the building houses one of UNIQLO's global flagship stores Market Shinsaibashi is a retail area with a high concentration of department stores and fashion brand stores Shopper traffic reaching 60,000 people at the Shinsaibashi‐suji shopping arcade per day Retail Properties Surrounding G‐Bldg. Shinsaibashi 03 Location A one‐minute walk from Shinsaibashi Station, a major subway hub station Located at the front end of the landmark shopping arcade in western Japan Facility A landmark property of the Shinsaibashi‐suji area with a highly visible façade Leased to UNIQLO for one of its global flagship stores Notable fashion brands that opened (or plan to open) their stores in Shinsaibashi area over the past two years Acquisition price NOI yield NOI yield (before depreciation) (after depreciation) (Average) remaining term of lease 4.3% 3.9% 7.0years 22,300 million JPY Appraisal value 23,100 million JPY Location Chuo Ward, Osaka, Osaka Year of initial construction 2010 Land area 1,168.84 m2 Floor area 4,501.88 m2 No. of tenants 1 Key tenant UNIQLO Source: BAC Urban Projects Co.,Ltd., "Market Potential Evaluation" Japan Retail Fund Investment Corporation 28 4. Appendix Overview of New Acquisitions 3 Road‐side stores and specialty buildings in favorable locations D G‐Bldg. Ginza 01 Income‐type Occupancy rate 100.0% D Acquisition Highlights A retail property that stands at Ginza area, an upscale retail area of Tokyo Market Ginza is well‐known in Japan for global flagship luxury brand stores Location Ginza 5‐chome Area Map A two minute‐walk from the Tokyo Metro Ginza Station Prime location with visibility, favorably located facing three major avenues Sotobori Street, Miyuki Street and Sony Street On‐going large‐scale redevelopment projects in the surrounding area Facility Tenants include an Italian luxury suit brand, Brioni, and a French restaurant Acquisition price NOI yield NOI yield (before depreciation) (after depreciation) (Average) remaining term of lease 4.2% 4.0% 2.2 years 5,500 million JPY Ginza area Japan Retail Fund Investment Corporation Appraisal value 5,780 million JPY Location Chuo Ward, Tokyo Year of initial construction 1980 Land area 272.35 m2 Floor area 2,130.59m2 No. of tenants 8 Key tenant Brioni 29 4. Appendix Overview of New Acquisitions 4 B Colline Bajikouen Retail properties near densely‐populated areas Income‐type Occupancy rate 98.1% Acquisition Highlights A retail complex that serves the daily needs of the local residents, located in a residential area in Tokyo Market A retail trade area population of approximately 50,000 within a one‐kilometer radius and approximately 420,000 within a three‐kilometer radius Location Located on Setagaya Street, which connects two Metropolitan circular routes Located in a highly populated residential neighborhood of Tokyo 23 Wards Close proximity to Bajikouen, a place of leisure for nearby residents Facility A neighborhood shopping center that encompasses a variety of tenants A crucial branch for TSUTAYA, a major retail store that sells books and rents CDs and DVDs Bajikouen and Keyaki Square Acquisition price NOI yield NOI yield (before depreciation) (after depreciation) (Average) remaining term of lease 5.2% 4.4% 5.2years 3,100 million JPY Japan Retail Fund Investment Corporation Appraisal value 3,580 million JPY Location Setagaya Ward, Tokyo Year of initial construction 1992 Land area 4,102.47 m2 Floor area Building A Building B Annex Total No. of tenants 8 Key tenant TSUTAYA 4,211.92 m2 1,565.74 m2 1,404.75 m2 7,182.41 m2 30 4. Appendix Overview of New Acquisitions 5 D B KAMISHIN PLAZA Retail properties near densely‐populated areas 98.9% Growth‐type Occupancy rate Acquisition Highlights A shopping center located in a residential area in northeast Osaka, catering to the daily needs of the local residents Market A retail trade area population of approximately 60,000 within a one‐kilometer radius and approximately 320,000 within a three‐kilometer radius Location A ten‐minute walk from two railway stations on major commuter lines Located in a residential area in northeast Osaka Neighborhood shopping center with tenants, including supermarket, bank and pharmacies, that caters to the daily needs of the local residents Acquisition price 3,900 NOI yield NOI yield (before depreciation) (after depreciation) (Average) remaining term of lease 7.2% 5.9% 2.6 years million JPY Appraisal value 4,160 million JPY Location Higashiyodogawa Ward, Osaka, Osaka Year of initial construction 1980 Main 17,734.13 m2 Annex Land area 12,764.54 m2 Floor area 253.46 m2 Machinery block 39.10 m2 Food court building Total No. of tenants Japan Retail Fund Investment Corporation 44 Key tenant 637.57 m2 18,664.26 m2 KOHYO, The Bank of Tokyo‐ Mitsubishi UFJ 31 4. Appendix Overview of New Acquisitions 6 B Summit Store Nakano Minamidai Retail properties near densely‐populated areas Income‐type Occupancy rate 100.0% Acquisition Highlights A chain food supermarket situated in Tokyo's residential neighborhood Market A retail trade area population of approximately 70,000 within a one‐kilometer radius and approximately 260,000 within a two‐kilometer radius Location A five‐minute walk from the Honancho Station on the Tokyo Metro Marunouchi Line Located in a residential area of Tokyo Facility Food supermarket chain operator SUMMIT, INC., which operates more than 100 stores in and around Tokyo, is the tenant of the property Acquisition price NOI yield NOI yield (before depreciation) (after depreciation) (Average) remaining term of lease 5.0% 4.5% 15.5 years 3,100 million JPY Japan Retail Fund Investment Corporation Appraisal value 3,180 million JPY Location Nakano Ward, Tokyo Year of initial construction 2009 Land area 2,035.14 m2 Floor area 3,524.02 m2 No. of tenants 1 Key tenant Summit Store 32 4. Appendix Overview of New Acquisitions 7 Retail properties in favorable locations adjacent to major stations C Round1 Kyoto Kawaramachi Income‐type Occupancy rate 100.0% Acquisition Highlights An amusement facility complex located in a busy shopping quarter of Kyoto Market A retail trade area population of approximately 260,000 within a three‐kilometer radius and approximately 670,000 within a five‐kilometer radius One of Kyoto’s major shopping districts, lined with amusement facilities, cafes, restaurants and fashion brand stores Location A five‐minute walk from Kawaramachi Station of Hankyu Railway Kyoto Line Located on Kawaramachi Street, one of Kyoto's major thoroughfares, making the facility highly visible and accessible Kawaramachi Street Facility Ranked high among Round1's facilities in Japan in terms of sales revenue Shijo‐Kawaramachi Area Map = JRF's property Acquisition price NOI yield NOI yield (before depreciation) (after depreciation) (Average) remaining term of lease 5.9% 5.0% 19.5 years 2,800 million JPY Japan Retail Fund Investment Corporation Appraisal value 3,050 million JPY Location Nakagyo Ward, Kyoto, Kyoto Year of initial construction 2001 Land area 1,816.70 m2 Floor area 8,821.66 m2 No. of tenants 1 Key tenant Round1 33 4. Appendix Overview of New Acquisitions 8 Retail properties in favorable locations adjacent to major stations D C Round1 Hiroshima Income‐type Occupancy rate 100.0% Acquisition Highlights An amusement facility complex located in one of the largest shopping districts in the Chugoku region of Japan Market A retail trade population of approximately 260,000 within a three‐kilometer radius and approximately 540,000 within a five‐kilometer radius Hacchobori and Kamiyacho area is one of the largest shopping districts in the Chugoku region in Japan Hondori Shopping Street Location A two‐minute walk from Tatemachi Station Situated in the center of the Hacchobori and Kamiyacho area, the property is also adjacent to the vibrant Hondori Shopping Street Facility Ranked high among Round1's facilities in Japan in terms of sales revenue Acquisition price NOI yield NOI yield (before depreciation) (after depreciation) (Average) remaining term of lease 7.2% 5.9% 19.5 years 2,970 Hacchobori and Kamiyacho Area Map million JPY Japan Retail Fund Investment Corporation Appraisal value 3,610 million JPY Location Naka Ward, Hiroshima, Hiroshima Year of initial construction 2003 Land area 2,078.64 m2 Floor area 9,890.63 m2 No. of tenants 1 Key tenant Round1 34 4. Appendix Occupancy Rate Portfolio occupancy rate of 99.8% Occupancy rate by property type Stable occupancy rate compared to other asset class Source: Note: Japan Retail Fund Investment Corporation Data for office and residential properties are from the Association for Real Estate Securitization, or ARES Data through February 2012 released by ARES as final figures are used for occupancy rates for office and residential properties. Occupancy rates were calculated using the following equation: Average occupancy rate = total leased area / total leasable area. Occupancy rates for office and residential properties area based on time‐series data of occupancy rates (for all incorporated assets) released by ARES. Occupancy rates for office and occupancy rate for assets in each asset class as owned by J‐REITs. 35 4. Appendix Portfolio List (1) (84 properties as of Oct. 15, 2013) Property number Property na me Investment style Loca ti on Tokyo and Greater Tokyo Metropolitan Area Acqui s i ti on da te Acqui s i ti on pri ce (mi l l i on JPY) Percentage Cap rate at acquisition (Note1) Lea s a bl e a rea (㎡) Occupancy rate Percentage Number of tenants Key tena nt(s ) Property ma na ger Age (Note 2) (yea rs ) PML (Note 3) (%) Urban Multi‐tenant Retail Properties (UM) UM‐2 G‐Bl dg. Mi na mi Aoya ma 02 Income Mi na to‐ku, Tokyo Ma r‐2003 5,350 0.7% 5.5% 1,529.15 0.0% 100.0% 4 VULCANIZE London XYMAX PROPERTIES 11.5 UM‐3 G‐Bl dg. Ji nguma e 05 Income Shi buya ‐ku, Tokyo Ja n‐2004 2,770 0.3% 5.6% 1,479.10 0.0% 100.0% 3 Di es el XYMAX PROPERTIES 28.4 8.5 UM‐5 G‐Bl dg. Ki ta Aoya ma 01 Income Mi na to‐ku, Tokyo Feb‐2005 989 0.1% 5.4% 492.69 0.0% 100.0% 3 NEWS, Bes t Bri da l Offi ce Mi ts uki 8.6 11.4 UM‐6 G‐Bl dg. Ji yuga oka 01 Income Meguro‐ku, Tokyo Ma r‐2005 2,700 0.3% 5.2% 1,817.65 0.1% 100.0% 10 next, Mi s s Pa ri s ∙Da ndy Hous e XYMAX PROPERTIES 14.2 3.3 UM‐7 Cheers Gi nza Income Chuo‐ku, Tokyo Aug‐2005 4,200 0.5% 4.3% 1,686.58 0.1% 100.0% 10 Syouta i en, MATSUJIN Nomura Building Management 8.5 5.7 UM‐8 GYRE (Note4) Growth Shi buya ‐ku, Tokyo Ma r‐2004 22,712 2.9% 3.4% 4,840.56 0.2% 97.1% 20 CHANEL, Omotes a ndo Uka i ‐tei Mitsubishi Corporation Urban Development 5.9 4.1 UM‐9 G‐Bl dg. Ji nguma e 06 Income Shi buya ‐ku, Tokyo Dec‐2007 2,360 0.3% 3.9% 670.43 0.0% 80.6% 3 Fa mi l y Ma rt Offi ce Mi ts uki 5.8 8.0 11.2 13.5 UM‐10 05G‐Bl dg. Ji nguma e 02 Income Shi buya ‐ku, Tokyo Ma y‐2008 2,233 0.3% 4.0% 426.29 0.0% 100.0% 3 ANASTASIA Offi ce Mi ts uki 5.4 UM‐11 G‐Bl dg. Da i ka nya ma 01 Income Shi buya ‐ku, Tokyo Dec‐2003 1,235 0.2% 5.3% 599.79 0.0% 100.0% 1 Fa mi l y Ma rt Offi ce Mi ts uki 22.5 4.7 UM‐13 G‐Bl dg. Mi na mi Aoya ma 01 Income Mi na to‐ku, Tokyo Ma r‐2009 6,430 0.8% 4.0% 922.30 0.0% 100.0% 3 HERNO Offi ce Mi ts uki 4.5 11.3 UM‐14 La Porte Aoya ma Growth Shi buya ‐ku, Tokyo Ma r‐2010 9,400 1.2% 4.5% 4,155.96 0.1% 92.3% 21 BENOIT Mitsubishi Corporation Urban Development 8.8 2.8 UM‐15 G‐Bl dg. Ji nguma e 03 Income Shi buya ‐ku, Tokyo Ma r‐2010 5,520 0.7% 4.8% 1,676.87 0.1% 93.3% 6 HOT TOYS JAPAN, RIZAP Offi ce Mi ts uki 4.2 10.7 88.8% 7 a di da s , Ci ti ba nk Tokyu La nd SC Ma na gement 38.9 5.3 Offi ce Mi ts uki 5.5 7.4 UM‐16 G‐Bl dg. Mi na mi Ikebukuro 01 Income Tos hi ma ‐ku, Tokyo Ma r‐2010 5,800 0.7% 5.1% 5,061.47 0.2% UM‐17 Urba n Terra ce Ji nguma e Income Shi buya ‐ku, Tokyo Sep‐2011 2,797 0.4% 4.7% 1,719.19 0.1% UM‐18 G‐Bl dg. Sa ngenja ya 01 Income Seta ga ya ‐ku, Tokyo Oct‐2012 3,725 0.5% 4.9% 3,471.52 0.1% 100.0% 3 TIPNESS, Za ‐Wa ta mi Tokyu La nd SC Ma na gement 7.8 5.1 UM‐19 G‐Bl dg. Gi nza 01 NEW Income Chuo‐ku, Tokyo Oct‐2013 5,500 0.7% 4.0% 1,610.54 0.1% 100.0% 8 Bri oni Mitsubishi Corporation Urban Development 32.9 5.4 UM‐20 KAWASAKI Le FRONT NEW Growth Kasawaki‐shi, Kanagawa Oct‐2013 30,000 3.8% 5.0% 56,184.07 1.8% Mitsubishi Jisho Retail Property Management 25.6 4.9 100.0% 2 OMOTESANDO TERRACE 98.2% 68 Yodoba s hi Ca mera , Ma rui Urban Single‐tenant Retail Properties (US) US‐3 G‐Bl dg. Ji nguma e 04 Income Shi buya ‐ku, Tokyo Apr‐2004 860 0.1% 5.5% 540.78 0.0% 100.0% 2 BEAUTRIUM Offi ce Mi ts uki 16.5 4.5 US‐4 Income Ta chi ka wa ‐s hi , Tokyo Sep‐2004 11,920 1.5% 5.5% 20,983.43 0.7% 100.0% 2 Bi c Ca mera Jones La ng La Sa l l e 43.1 15.5 Bi c Ca mera Ta chi ka wa US‐8 G‐Bl dg. Ji nguma e 01 Income Shi buya ‐ku, Tokyo Ma y‐2008 3,400 0.4% 4.1% 555.75 0.0% 100.0% 2 BAPE STORE Offi ce Mi ts uki 5.9 13.2 US‐9 G‐Bl dg. Shi njuku 01 Income Shi njyuku‐ku, Tokyo Ma r‐2010 6,600 0.8% 4.7% 1,093.67 0.0% 100.0% 1 ZARA Fi rs t Brothers Rea l Es ta te 5.0 9.9 US‐11 Arka ngel Da i ka nya ma (land with leasehold interest) Income Meguro‐ku, Tokyo Sep‐2011 1,820 0.2% ‐ 904.04 0.0% 100.0% 1 Arka ngel XYMAX PROPERTIES US‐14 Round1 Yokoha ma Sta ti on Wes t Income Yokohama‐shi, Kanagawa Oct‐2012 3,930 0.5% 4.6% 6,560.09 0.2% 100.0% 1 Round1 US‐15 G‐Bl dg. Omotes a ndo Income Shi buya ‐ku, Tokyo Oct‐2012 5,850 0.7% 3.9% 1,508.03 0.0% ‐ ‐ Kei ha n RyutuSys tems 11.4 8.4 100.0% 1 KIDDY LAND Mitsubishi Corporation Urban Development 1.4 4.4 8.8、13.8 Suburban Multi‐tenant Retail Properties (SM) SM‐2 Abi ko Shoppi ng Pl a za Growth Abi ko‐s hi , Chi ba Ma r‐2003 10,322 1.3% 7.2% 43,548.63 1.4% 100.0% 58 Ito‐Yoka do XYMAX PROPERTIES 18.8 SM‐5 Hi ga s hi ‐Tots uka Aurora Ci ty Growth Yokohama‐shi, Kanagawa Ma r‐2006 50,500 6.4% 4.5% 109,365.50 3.5% 100.0% 4 Sei bu, Da i ei Ai m Crea te 14.0 3.7 SM‐6 Ito‐Yoka do Ka wa s a ki Income Kawasaki‐shi, Kanagawa Ma r‐2002 15,691 2.0% 6.2% 65,313.47 2.1% 100.0% 5 Ito‐Yoka do, SPORTS DEPO XYMAX PROPERTIES 13.1 9.2、11.3、1.4 Income Chi ba ‐s hi , Chi ba Sep‐2011 5,700 0.7% 6.2% 24,542.93 0.8% 100.0% 6 Ya ma da Denki XYMAX PROPERTIES 15.1 10.8、10.8 Income Seta ga ya ‐ku, Tokyo Oct‐2013 3,100 0.4% 4.8% 5,368.02 0.2% Offi ce Mi ts uki 21.5 14.3、3.8 SM‐9 Ma kuha ri Pl a za SM‐13 Col l i ne Ba ji kouen NEW 98.1% 8 TSUTAYA (Note 1) The direct cap rates disclosed on appraisal report at the time of the initial acquisition of the properties are shown. Additional purchases following acquisition are not included. (Note 2) Age of properties are calculated as of Aug 31, 2013. For acquired properties, the figure is calculated as of the date of the acquisition. (Note 3) Represents the expected loss ratio for subject properties due to earthquake damage that may result from an earthquake that is expected to occur once every 475 years, as described in the earthquake risk analysis report for each property. (Note 4) Acquisition price of GYRE includes the initially‐held land with leasehold and the land additionally acquired. The cap rate at the time of acquisition only reflects the building plus the land leasehold and the land is not included. Japan Retail Fund Investment Corporation 36 4. Appendix Portfolio List (2) (84 properties as of Oct. 15, 2013) Property number Property na me Investment style Loca ti on Tokyo and Greater Tokyo Metropolitan Area Acqui s i ti on da te Acqui s i ti on pri ce (mi l l i on JPY) Percentage Cap rate at acquisition (Note1) Lea s a bl e a rea (㎡) Occupancy rate Percentage Number of tenants Age (Note 2) (yea rs ) Property ma na ger Key tena nt(s ) PML (Note 3) (%) Suburban Single‐tenant Retail Properties (SS) SS‐5 Ito‐Yoka do Ya ba s hi ra Income Ma ts udo‐s hi , Chi ba Jun‐2003 1,616 0.2% 6.1% 21,308.78 0.7% 100.0% 1 Ito‐Yoka do XYMAX PROPERTIES 30.9 SS‐6 Ito‐Yoka do Ka mi fukuoka ‐Hi ga s hi Income Fuji mi no‐s hi , Sa i ta ma Sep‐2003 6,900 0.9% 6.3% 28,316.18 0.9% 100.0% 1 Ito‐Yoka do Kei ha n RyutuSys tems 14.0 9.7 SS‐7 Ito‐Yoka do Ni s hi ki cho Income Wa ra bi ‐s hi , Sa i ta ma Nov‐2003 13,212 1.7% 5.6% 73,438.52 2.4% 100.0% 1 Ito‐Yoka do Kei ha n RyutuSys tems 9.8 8.3 SS‐11 Ito‐Yoka do Ts una s hi ma Income Yokohama‐shi, Kanagawa Jun‐2004 5,000 0.6% 6.1% 16,549.50 0.5% 100.0% 1 Ito‐Yoka do Jones La ng La Sa l l e 31.5 12.3 SS‐12 AEON Ita ba s hi SC Income Ita ba s hi ‐ku, Tokyo Dec‐2004 12,411 1.6% 5.4% 72,748.34 2.3% 100.0% 1 AEON XYMAX PROPERTIES 13.3 6.1 SS‐13 AEON MALL Ya ma to Income Ya ma to‐s hi , Ka na ga wa Feb‐2005 16,823 2.1% 5.5% 85,226.68 2.7% 100.0% 1 AEON XYMAX PROPERTIES 11.8 8.0 10.4 6.1、4.9 SS‐14 SEIYU Hi ba ri ga oka Income Ni s hi Tokyo‐s hi , Tokyo Ma r‐2005 6,100 0.8% 7.6% 19,070.88 0.6% 100.0% 1 Sei yu CBRE 34.9 SS‐20 AEON Omi ya Income Sa i ta ma ‐s hi , Sa i ta ma Jun‐2006 6,133 0.8% 5.8% 75,344.90 2.4% 100.0% 1 AEON XYMAX PROPERTIES 12.9 8.5 SS‐25 Ito‐Yoka do Yots uka i do Income Yots uka i do‐s hi , Chi ba Aug‐2007 13,600 1.7% 4.1% 59,207.19 1.9% 100.0% 1 Ito‐Yoka do Kei ha n RyutuSys tems 8.6 5.9 6.7 SS‐27 AEON MALL Ya chi yo Mi dori ga oka Income Ya chi yo‐s hi , Chi ba Sep‐2007 30,789 3.9% 4.0% 132,294.48 4.3% 100.0% 1 AEON XYMAX PROPERTIES 8.5 SS‐30 AEON MALL Mus a s hi Mura ya ma Income Musashimurayama‐shi, Tokyo Ma r‐2010 30,600 3.9% 5.2% 137,466.97 4.4% 100.0% 1 AEON XYMAX PROPERTIES 6.9 5.7 SS‐36 Round1 Sta di um Ita ba s hi Income Ita ba s hi ‐ku, Tokyo Sep‐2011 2,400 0.3% 5.8% 14,828.74 0.5% 100.0% 1 Round1 TOYO PROPERTY 7.4 4.8 Income Ma chi da ‐s hi , Tokyo Sep‐2011 2,450 0.3% 5.9% 6,801.89 0.2% 100.0% 1 Round1 TOYO PROPERTY 9.1 6.6 Income Na ka no‐ku, Tokyo Oct‐2013 3,100 0.4% 4.9% 3,536.50 0.1% 100.0% 1 Summi t Store Kei ha n RyutuSys tems 4.6 3.7 384,551 48.4% ‐ 1,114,768.05 35.9% ‐ ‐ SS‐37 Round1 Ma chi da SS‐41 Summi t Store Na ka no Mi na mi da i NEW Sub tota l / a vera ge 43 properti es 99.8% 280 ‐ ‐ Os a ka , Na goya a nd Surroundi ng Area s Urban Single‐tenant Retail Properties (US) US‐1 8953 Os a ka Shi ns a i ba s hi Bui l di ng Income Os a ka ‐s hi , Os a ka Ma r‐2002 14,300 1.8% 5.5% 13,666.96 0.4% 100.0% 1 Tokyu Ha nds XYMAX PROPERTIES 14.6 6.2 US‐6 Income Kyoto‐s hi , Kyoto Sep‐2006 18,500 2.3% 4.4% 18,848.20 0.6% 100.0% 1 OPA Tokyu La nd SC Ma na gement 14.8 2.8 0.0% Ka wa ra ma chi OPA US‐10 G‐Bl dg. Shi ns a i ba s hi 01 Income Os a ka ‐s hi , Os a ka Apr‐2010 1,582 0.2% 5.3% 886.46 US‐12 G‐Bl dg. Shi ns a i ba s hi 02 Income Os a ka ‐s hi , Os a ka Sep‐2011 4,380 0.6% 5.1% US‐13 Round1 Stadium Sennichimae (land with leasehold interes Income Os a ka ‐s hi , Os a ka Sep‐2011 8,000 1.0% ‐ 1,711.63 US‐16 Round 1 Kyoto Ka wa ra ma chi Income Kyoto‐s hi , Kyoto Oct‐2013 2,800 0.4% US‐18 G‐Bl dg. Shi ns a i ba s hi 03 Income Os a ka ‐s hi , Os a ka Oct‐2013 22,300 NEW NEW Suburban Multi‐tenant Retail Properties (SM) SM‐1 Na ra Fa mi l y 100.0% 2 CECIL McBEE XYMAX PROPERTIES 18.8 12.8 100.0% 1 THE SUIT COMPANY Kei ha n RyutuSys tems 3.8 7.3 0.1% 100.0% 1 Round1 Jones La ng La Sa l l e 5.2% 8,821.66 0.3% 100.0% 1 Round1 2.8% 4.3% 4,631.13 0.1% 100.0% 1 UNIQLO Not di s cl os ed 99.7% 126 Ki ntets u Dept. Store, AEON ‐ ‐ Kei ha n RyutuSys tems 12.6 4.2 Kei ha n RyutuSys tems 3.1 5.5 5.8 Growth Na ra ‐s hi , Na ra Ma r‐2003 34,875 4.4% 7.4% 85,024.42 2.7% AEON MALL 20.8 SM‐4 Kyoto Fa mi l y Growth Kyoto‐s hi , Kyoto Dec‐2005 5,340 0.7% 6.5% 19,679.78 0.6% 100.0% 70 AEON, EDION Mitsubishi Corporation Urban Development 30.8 3.8 SM‐7 Na rupa rk Growth Na goya ‐s hi , Ai chi Ma r‐2003 8,540 1.1% 7.3% 15,227.58 0.5% 100.0% 48 Hei wa do, Jos hi n XYMAX PROPERTIES 16.1 8.1 15.5 4.6、4.4 ‐ ‐ SM‐8 Ki s hi wa da Ca nCa n Ba ys i de Ma l l Growth Ki s hi wa da ‐s hi , Os a ka Sep‐2011 7,245 0.9% 6.6% 38,294.38 1.2% 100.0% 116 Izumi ya , Uni ted Ci nema Sumi s ho Urba n Ka i ha ts u SM‐10 Izumi s a no Shofuda i (land with leasehold interest) Income Izumi s a no‐s hi , Os a ka Sep‐2011 2,625 0.3% ‐ 44,009.52 1.4% 100.0% 2 Kei yo D2, Okuwa Jones La ng La Sa l l e SM‐11 mozo wonder ci ty SM‐12 pi vo Izumi Chuo SM‐14 KAMISHIN PLAZA pi vo Bl dg Tecc La nd Bl dg NEW Growth Na goya ‐s hi , Ai chi Oct‐2011 32,000 4.0% Income Izumi ‐s hi , Os a ka Oct‐2012 6,000 0.8% Growth Os a ka ‐s hi , Os a ka Oct‐2013 3,900 0.5% 5.8% 86,722.83 6.1% 6.0% 21,182.94 5.9% 11,809.69 2.8% 0.7% 0.4% XYMAX PROPERTIES AEON MALL 4.4 8.1、5.8、13.4 Ya ma da Denki , Sumi tomo Mi ts ui Ba nki ng Corpora ti on XYMAX PROPERTIES 4.5 5.1、6.5 KOHYO, The Bank of Toko‐Mitsubishi UFJ Geo Aka ma ts u 32.7 3.7 99.7% 223 AEON, FRAXUS 100.0% 17 98.9% 44 (Note 1) The direct cap rates disclosed on appraisal report at the time of acquiring new properties are shown. Additional purchases following acquisition are not included. (Note 2) Age of properties are calculated as of Aug 31, 2013. For acquired properties, the figure is calculated as of the date of the acquisition. (Note 3) Represents the expected loss ratio for subject properties due to earthquake damage that may result from an earthquake that is expected to occur once every 475 years, as described in the earthquake risk analysis report for each property. Japan Retail Fund Investment Corporation 37 4. Appendix Portfolio List (3) (84 properties as of Oct. 15, 2013) Property number Property na me Investment style Loca ti on Acqui s i ti on da te Acqui s i ti on pri ce (mi l l i on JPY) Os a ka , Na goya a nd Surroundi ng Area s Percentage Cap rate at acquisition (Note1) Lea s a bl e a rea (㎡) Occupancy rate Percentage Number of tenants Age (Note 2) (yea rs ) Property ma na ger Key tena nt(s ) PML (Note 3) (%) Suburban Single‐tenant Retail Properties (SS) SS‐8 AEON MALL Hi ga s hi ura Income Chi ta ‐gun, Ai chi Ja n‐2004 9,142 1.2% 6.3% 129,124.73 4.2% 100.0% 1 AEON XYMAX PROPERTIES 10.7 SS‐16 AEON Ta ka ts uki Income Ta ka ts uki ‐s hi , Os a ka Ma r‐2005 11,700 1.5% 6.0% 77,267.23 2.5% 100.0% 1 AEON CBRE 19.5 3.7 SS‐17 AEON Ya goto Income Na goya ‐s hi , Ai chi Jun‐2005 3,700 0.5% 7.0% 63,778.44 2.1% 100.0% 2 AEON XYMAX PROPERTIES 20.0 4.7 5.1 15.2、10.8 SS‐19 AEON Ni s hi Ots u Income Ots u‐s hi , Shi ga Dec‐2005 13,100 1.6% 5.2% 62,717.26 2.0% 100.0% 1 AEON XYMAX PROPERTIES 16.8 SS‐21 AEON TOWN Oga ki Income Oga ki ‐s hi , Gi fu Jul ‐2006 4,950 0.6% 8.2% 57,500.35 1.9% 100.0% 1 Ma xVa l u Jones La ng La Sa l l e 8.1 6.7 SS‐23 AEON MALL Ts urumi Ryokuchi Income Os a ka ‐s hi , Os a ka Nov‐2006 29,902 3.8% 4.6% 138,538.63 4.5% 100.0% 1 AEON XYMAX PROPERTIES 6.8 7.0 SS‐24 AEON MALL Ita mi Income Ita mi ‐s hi , Hyogo Dec‐2006 21,488 2.7% 5.1% 157,904.26 5.1% 100.0% 1 AEON XYMAX PROPERTIES 10.7 5.2 SS‐29 Ari o Otori Income Sa ka i ‐s hi , Os a ka Ma y‐2008 19,040 2.4% 4.6% 95,135.36 3.1% 100.0% 1 Ito‐Yoka do Jones La ng La Sa l l e 5.4 5.9 SS‐31 AEON MALL Kobe Ki ta Income Kobe‐s hi , Hyogo Ma r‐2010 15,600 2.0% 5.7% 128,031.55 4.1% 100.0% 1 AEON Jones La ng La Sa l l e 6.8 5.0 SS‐32 Li fe Ta i hei ji (land with leasehold interest) Income Higashi Osaka‐shi, Osaka Ma r‐2010 1,282 0.2% ‐ 3,898.01 0.1% 100.0% 1 Li fe Nippon Commercial Development ‐ ‐ SS‐33 Li fe Shi modera (land with leasehold interest) Income Os a ka ‐s hi , Os a ka Ma r‐2010 1,683 0.2% ‐ 4,344.18 0.1% 100.0% 1 Li fe Nippon Commercial Development ‐ ‐ SS‐34 Li fe Ki s hi be (land with leasehold interest) Income Sui ta ‐s hi , Os a ka Ma r‐2010 1,910 0.2% ‐ 5,516.61 0.2% 100.0% 1 Li fe Nippon Commercial Development ‐ ‐ SS‐38 Tecc La nd Neya ga wa (land with leasehold interest) Income Neya ga wa‐s hi , Os a ka Sep‐2011 1,135 0.1% ‐ 11,430.04 0.4% 100.0% 1 Ya ma da Denki XYMAX PROPERTIES ‐ ‐ SS‐39 Round1 Sta di um Sa ka i Chuo Ka njyo Income Sa ka i ‐s hi , Os a ka Oct‐2012 1,750 0.2% 5.8% 17,521.46 0.6% 100.0% 1 Round1 Kei ha n RyutuSys tems 8.7 4.8 308,771 38.9% ‐ 1,324,174.01 42.7% ‐ ‐ Sub tota l / a vera ge 29 Properti es 100.0% 669 ‐ ‐ Other Ci ti es Urban Multi‐tenant Retail Properties (UM) UM‐12 G DINING SAPPORO Growth Sa pporo‐s hi , Hokka i do Ma r‐2009 2,750 0.3% 5.8% 4,082.11 0.1% 100.0% 24 Nukumi , Ha na re Aji s hi ge, Aki Na ga o XYMAX PROPERTIES 4.8 0.9 Urban Single‐tenant Retail Properties (US) US‐17 Round 1Hi ros hi ma NEW Income Hiroshima‐shi, Hiroshima Oct‐2013 2,970 0.4% 5.8% 9,890.63 0.3% 100.0% 1 Round1 9.8 2.9 2.2、2.1、0.8 XYMAX PROPERTIES Suburban Single‐tenant Retail Properties (SS) SS‐1 AEON Senda i Na ka ya ma Income Senda i‐s hi , Mi ya gi Ma r‐2002 10,200 1.3% 7.6% 46,248.96 1.5% 100.0% 2 AEON XYMAX PROPERTIES 17.2 SS‐9 AEON MALL Ka s hi i ha ma Income Fukuoka ‐s hi , Fukuoka Ja n‐2004 13,300 1.7% 6.2% 109,616.72 3.5% 100.0% 1 AEON XYMAX PROPERTIES 9.8 0.9 SS‐10 AEON MALL Sa pporo Na ebo Income Sa pporo‐s hi , Hokka i do Ma r‐2004 9,260 1.2% 6.2% 74,625.52 2.4% 100.0% 1 AEON XYMAX PROPERTIES 10.2 1.8 SS‐15 AEON Toba ta SC Income Kita Kyushu‐shi, Fukuoka Ma r‐2005 6,290 0.8% 6.6% 93,258.23 3.0% 100.0% 1 AEON XYMAX PROPERTIES 14.5 1.9 SS‐18 AEON Na ha SC Income Na ha ‐s hi , Oki na wa Jun‐2005 10,830 1.4% 6.0% 79,090.48 2.5% 100.0% 1 AEON Jones La ng La Sa l l e 19.9 7.3 SS‐22 AEON Ueda Income Ueda‐s hi , Na ga no Nov‐2006 9,500 1.2% 5.3% 61,349.07 2.0% 100.0% 1 AEON SS‐26 Oya ma Yuen Ha rves t Wa l k Growth Oya ma ‐s hi , Tochi gi Aug‐2007 10,200 1.3% 5.4% 59,580.92 1.9% 92.6% 55 York Beni ma ru, Super Vi va Home Jones La ng La Sa l l e 9.2 3.4 XYMAX PROPERTIES 6.4 3.4 SS‐28 AEON MALL Sa pporo Ha s s a mu Income Sa pporo‐s hi , Hokka i do Ma r‐2008 18,818 2.4% 4.7% 102,169.00 3.3% 100.0% 1 AEON Jones La ng La Sa l l e 6.9 0.6 SS‐35 MrMa x Na ga s a ki Income Na ga s a ki ‐s hi , Na ga s a ki Sep‐2011 2,475 0.3% 6.7% 12,115.09 0.4% 100.0% 2 MrMa x XYMAX PROPERTIES 12.9 3.2、3.5、6.6 SS‐40 Tecc La nd Fukuoka Shi me Honten Income Ka s uya ‐gun, Fukuoka Oct‐2012 6.5% Not di s cl os ed 4,150 0.5% 4.8 0.9 Sub tota l / a vera ge 12 Properti es 100,743 12.7% ‐ 663,256.43 21.4% 100.0% 1 Ya ma da Denki 99.3% 91 ‐ Mi yos hi Rea l Es ta te ‐ ‐ ‐ Portfolio total / average 84 properties 794,066 100.0% ‐ 3,102,198.49 100.0% 99.8% 1,040 ‐ ‐ ‐ 2.1 (Note 1) The direct cap rates disclosed on appraisal report at the time of acquiring new properties are shown. Additional purchases following acquisition are not included. (Note 2) Age of properties are calculated as of Aug 31, 2013. For acquired properties, the figure is calculated as of the date of the acquisition. (Note 3) Represents the expected loss ratio for subject properties due to earthquake damage that may result from an earthquake that is expected to occur once every 475 years, as described in the earthquake risk analysis report for each property. Japan Retail Fund Investment Corporation 38 4. Appendix Appraisal Value (1) (76 properties as of the end of the 23rd period) Property number Property Na me Book Va l ue (mil l ion JPY) Tokyo and Greater Tokyo Metropolitan Area Unrea l i zed profi ts a nd los s es (mi l li on JPY) Appra i s a l Va l ue (mi ll i on JPY) Feb. 2013 Aug. 2013 Appl i ca bl e va l ua ti on ra te Di s counted ca s h flow method Di rect ca pita l i za tion method Di rect Ca p Ra te Va ria ti on Feb. 2013 Aug. 2013 Di s count Ra te Va ri a ti on Feb. 2013 Aug. 2013 Termina l Ca p Ra te Va ria ti on Feb. 2013 Aug. 2013 Va ri a ti on Urban Multi‐tenant Retail Properties (UM) UM‐2 G‐Bl dg. Mina mi Aoya ma 02 5,271 +78 5,350 5,350 ‐ 4.7% 4.6% ‐0.1 pt 4.4% 4.2% ‐0.2 pt 4.5% UM‐3 G‐Bl dg. Ji nguma e 05 2,710 +1,019 3,680 3,730 +50 4.6% 4.5% ‐0.1 pt 4.4% 4.3% ‐0.1 pt 4.8% 4.7% ‐0.1 pt UM‐5 G‐Bl dg. Ki ta Aoya ma 01 959 +410 1,340 1,370 +30 4.2% 4.1% ‐0.1 pt 4.0% 3.9% ‐0.1 pt 4.4% 4.3% ‐0.1 pt UM‐6 G‐Bl dg. Ji yuga oka 01 2,520 2,570 +50 4.6% 4.5% ‐0.1 pt 4.4% 4.3% ‐0.1 pt 4.8% 4.7% ‐0.1 pt 620 627 +7 4.9% 4.8% ‐0.1 pt 4.7% 4.6% ‐0.1 pt 5.1% 5.0% ‐0.1 pt UM‐7 Cheers Gi nza 4,020 ‐280 3,710 3,740 +30 4.1% 4.0% ‐0.1 pt 4.0% 3.9% ‐0.1 pt 4.3% 4.2% ‐0.1 pt NEXT Buil di ng Col l ine 2,530 +666 4.3% ‐0.2 pt UM‐8 GYRE 22,253 +346 22,600 22,600 ‐ 3.65% 3.60% ‐0.05 pt 3.45% 3.40% ‐0.05 pt 3.65% 3.60% ‐0.05 pt UM‐9 G‐Bl dg. Ji nguma e 06 2,366 ‐36 2,330 2,330 ‐ 4.2% 4.1% ‐0.1 pt 4.4% 4.2% ‐0.2 pt 4.5% 4.3% ‐0.2 pt UM‐10 G‐Bl dg. Ji nguma e 02 2,313 ‐663 1,640 1,650 +10 5.0% 4.9% ‐0.1 pt 4.4% 4.2% ‐0.2 pt 4.7% 4.5% ‐0.2 pt UM‐11 G‐Bl dg. Da i ka nya ma 01 1,234 +95 1,280 1,330 +50 4.7% 4.6% ‐0.1 pt 4.5% 4.4% ‐0.1 pt 4.9% 4.8% ‐0.1 pt UM‐13 G‐Bl dg. Mina mi Aoya ma 01 6,469 ‐1,459 5,010 5,010 ‐ 4.9% 4.8% ‐0.1 pt 4.3% 4.1% ‐0.2 pt 4.4% 4.2% ‐0.2 pt UM‐14 La Porte Aoya ma 9,332 +317 9,340 9,650 +310 4.3% 4.2% ‐0.1 pt 4.5% 4.3% ‐0.2 pt 4.6% 4.4% ‐0.2 pt UM‐15 G‐Bl dg. Ji nguma e 03 5,553 ‐1,063 4,550 4,490 ‐60 4.6% 4.5% ‐0.1 pt 4.1% 4.0% ‐0.1 pt 4.5% 4.4% ‐0.1 pt UM‐16 G‐Bl dg. Mina mi Ikebukuro 01 6,019 +1,410 7,410 7,430 +20 4.8% 4.7% ‐0.1 pt 4.7% 4.6% ‐0.1 pt 5.1% 5.0% ‐0.1 pt UM‐17 Urba n Terra ce Ji nguma e 2,804 +1,425 4,090 4,230 +140 4.6% 4.5% ‐0.1 pt 4.6% 4.4% ‐0.2 pt 4.7% 4.5% ‐0.2 pt UM‐18 G‐Bl dg. Sa ngenja ya 01 3,741 +408 4,060 4,150 +90 4.9% 4.8% ‐0.1 pt 4.7% 4.6% ‐0.1 pt 5.1% 5.0% ‐0.1 pt Urban Single‐tenant Retail Properties (US) US‐3 G‐Bl dg. Ji nguma e 04 871 +378 1,220 1,250 +30 4.4% 4.3% ‐0.1 pt 4.1% 4.0% ‐0.1 pt 4.6% 4.5% ‐0.1 pt US‐4 11,438 +561 12,000 12,000 ‐ 5.7% 5.7% ‐ 5.3% 5.3% ‐ 5.6% 5.6% ‐ Bi c Ca mera Ta chi ka wa US‐8 G‐Bl dg. Ji nguma e 01 3,411 +268 3,650 3,680 +30 4.2% 4.2% ‐ 4.5% 4.3% ‐0.2 pt 4.5% 4.3% ‐0.2 pt US‐9 G‐Bl dg. Shi njuku 01 6,641 +318 6,770 6,960 +190 4.6% 4.5% ‐0.1 pt 4.2% 4.1% ‐0.1 pt 4.8% 4.7% ‐0.1 pt US‐11 Arka ngel Da i ka nya ma (land with leasehold interest) 1,842 +307 2,090 2,150 +60 ‐ ‐ 4.6% 4.4% ‐0.2 pt ‐ US‐14 Round1 Yokoha ma Sta ti on Wes t 3,938 +711 4,470 4,650 +180 4.4% 4.3% ‐0.1 pt 4.6% 4.4% ‐0.2 pt 4.7% 4.5% ‐0.2 pt US‐15 G‐Bl dg. Omotes a ndo ‐ ‐ ‐ 5,931 +428 6,180 6,360 +180 3.9% 3.8% ‐0.1 pt 3.7% 3.6% ‐0.1 pt 4.1% 4.0% ‐0.1 pt Suburban Multi‐tenant Retail Properties (SM) SM‐2 Abiko Shoppi ng Pl a za 9,814 +2,685 12,200 12,500 +300 6.7% 6.5% ‐0.2 pt 6.0% 5.8% ‐0.2 pt 6.5% 6.3% ‐0.2 pt SM‐5 48,230 ‐7,130 40,100 41,100 +1,000 4.9% 4.8% ‐0.1 pt 4.7% 4.6% ‐0.1 pt 5.1% 5.0% ‐0.1 pt 10,500 10,800 +300 5.5% 5.3% ‐0.2 pt 5.1% 4.9% ‐0.2 pt 5.8% 5.6% ‐0.2 pt 2,850 2,890 +40 6.6% 6.5% ‐0.1 pt 5.8% 5.7% ‐0.1 pt 6.3% 6.2% ‐0.1 pt 5,621 +598 6,070 6,220 +150 6.0% 5.9% ‐0.1 pt 6.1% 5.9% ‐0.2 pt 6.3% 6.1% ‐0.2 pt Hi ga s hi ‐Tots uka Aurora Ci ty SM‐6 Ito‐Yoka do Ka wa s a ki SM‐9 Ma kuha ri Pl a za Ma i nBui l di ng Annex 14,085 ‐395 (Note) The end of term appraisal value, direct cap rate, DCF discount rate and DCF terminal cap rate are based on appraisals and survey reports by real estate valuers (CBRE, Daiwa Real Estate Appraisal, Japan Real Estate Institute and Tanizawa Sogo Appraisal Co., Ltd.). Japan Retail Fund Investment Corporation 39 4. Appendix Appraisal Value (2) (76 properties as of the end of the 23rd period) Property number Property Na me Book Va l ue (mil l ion JPY) Tokyo and Greater Tokyo Metropolitan Area Unrea l i zed profi ts a nd los s es (mi l li on JPY) Appra i s a l Va l ue (mi ll i on JPY) Feb. 2013 Aug. 2013 Appl i ca bl e va l ua ti on ra te Di s counted ca s h flow method Di rect ca pita l i za tion method Di rect Ca p Ra te Va ria ti on Feb. 2013 Aug. 2013 Di s count Ra te Va ri a ti on Feb. 2013 Aug. 2013 Termina l Ca p Ra te Va ria ti on Feb. 2013 Aug. 2013 Va ri a ti on Suburban Single‐tenant Retail Properties (SS) SS‐5 Ito‐Yoka do Ya ba s hira 1,410 +539 1,880 1,950 +70 6.1% 5.9% ‐0.2 pt 5.9% 5.7% ‐0.2 pt 6.4% SS‐6 Ito‐Yoka do Ka mifukuoka ‐Hi ga s hi 6,220 +459 6,680 6,680 ‐ 6.3% 6.1% ‐0.2 pt 5.8% 5.6% ‐0.2 pt 6.3% 6.1% ‐0.2 pt SS‐7 Ito‐Yoka do Ni s hi kicho 11,119 +2,080 12,800 13,200 +400 5.7% 5.6% ‐0.1 pt 5.8% 5.6% ‐0.2 pt 6.0% 5.8% ‐0.2 pt 6.0% ‐0.2 pt 6.2% ‐0.2 pt SS‐11 Ito‐Yoka do Ts una s hima 4,776 +103 4,880 4,880 ‐ 6.4% 6.0% ‐0.4 pt 5.7% 5.5% ‐0.2 pt 6.2% SS‐12 AEON Ita ba s hi SC 11,249 +1,750 12,800 13,000 +200 5.4% 5.2% ‐0.2 pt 5.0% 4.8% ‐0.2 pt 5.7% 5.5% ‐0.2 pt SS‐13 AEON MALL Ya ma to 15,571 +1,728 17,300 17,300 ‐ 5.3% 5.3% ‐ 4.9% 4.9% ‐ 5.4% 5.4% ‐ SS‐14 SEIYU Hi ba riga oka 5,154 +1,765 6,980 6,920 ‐60 6.7% 6.5% ‐0.2 pt 6.5% 6.3% ‐0.2 pt 7.0% 6.8% ‐0.2 pt SS‐20 AEON Omi ya 5,840 +249 6,120 6,090 ‐30 6.1% 6.1% ‐ 6.6% 6.6% ‐ 7.3% 7.3% ‐ SS‐25 Ito‐Yoka do Yots uka i do 13,127 ‐3,027 10,000 10,100 +100 5.6% 5.6% ‐ 5.4% 5.4% ‐ 5.6% 5.6% ‐ SS‐27 AEON MALL Ya chi yo Mi dori ga oka 28,781 ‐6,481 22,000 22,300 +300 5.6% 5.5% ‐0.1 pt 5.3% 5.2% ‐0.1 pt 5.6% 5.5% ‐0.1 pt SS‐30 AEON MALL Mus a s hi Mura ya ma 28,523 +1,576 30,300 30,100 ‐200 5.2% 5.2% ‐ 4.8% 4.8% ‐ 5.3% 5.3% ‐ SS‐36 Round1 Sta di um Ita ba s hi 2,367 +462 2,730 2,830 +100 5.6% 5.5% ‐0.1 pt 5.7% 5.5% ‐0.2 pt 5.9% 5.7% ‐0.2 pt SS‐37 Round1 Ma chi da 5.6% ‐0.1 pt 5.8% 5.6% ‐0.2 pt 6.0% 5.8% ‐0.2 pt 2,425 +334 2,680 2,760 +80 5.7% 325,976 +2,950 324,780 328,927 +4,147 ‐ Urban Single‐tenant Retail Properties (US) US‐1 8953 Os a ka Shi ns a i ba s hi Bui lding 12,769 +630 13,300 13,400 +100 US‐6 Ka wa ra ma chi OPA 18,458 ‐2,858 15,600 15,600 ‐ US‐10 G‐Bl dg. Shi ns a i ba s hi 01 US‐12 US‐13 Subtota l ‐ ‐ ‐ 5.0% 4.9% ‐0.1 pt 5.0% 4.9% ‐0.1 pt 1,606 +193 1,740 1,800 +60 5.0% G‐Bl dg. Shi ns a i ba s hi 02 4,388 +551 4,740 4,940 +200 4.9% Round1 Stadium Sennichimae (land with leasehold interest) 8,091 +418 8,260 8,510 +250 ‐ Suburban Multi‐tenant Retail Properties (SM) SM‐1 Na ra Fa mil y 33,597 +3,702 37,300 37,300 ‐ SM‐4 Kyoto Fa mi l y 7,032 ‐1,572 5,450 5,460 +10 SM‐7 Na rupa rk SM‐8 Ki s hi wa da Ca nCa n Ba ys i de Ma l l ‐ ‐ ‐ ‐ ‐ 5.2% 5.0% ‐0.2 pt 5.3% 4.5% 4.4% ‐0.1 pt 4.8% 4.7% ‐0.1 pt 4.8% ‐0.2 pt 4.8% 4.6% ‐0.2 pt 5.2% 5.0% ‐0.2 pt 4.7% ‐0.2 pt Os a ka , Na goya a nd Surroundi ng Area s 4.5% 4.3% ‐0.2 pt 5.0% 4.8% ‐0.2 pt ‐ 4.8% 4.6% ‐0.2 pt ‐ ‐ ‐ 6.3% 6.3% ‐ 5.7% 5.7% ‐ 6.6% 6.6% ‐ 6.5% 6.5% ‐ 5.9% 5.9% ‐ 6.9% 6.9% ‐ 7,976 ‐2,896 5,170 5,080 ‐90 6.5% 6.5% ‐ 6.2% 6.2% ‐ 6.7% 6.7% ‐ 7,171 +678 7,850 7,850 ‐ 6.6% 6.6% ‐ 6.3% 6.3% ‐ 6.6% 6.6% ‐ ‐ 5.9% 5.8% ‐0.1 pt ‐ ‐ ‐ 5.5% ‐0.1 pt 5.8% 5.6% ‐0.2 pt 5.9% 5.7% ‐0.2 pt SM‐10 Izumis a no Shofuda i (land with leasehold interest) 2,657 +112 2,770 2,770 ‐ ‐ SM‐11 mozo wonder ci ty 31,698 +2,601 33,500 34,300 +800 5.6% SM‐12 pi vo Izumi Chuo pi vo Bldg Tecc La nd Bl dg 5.1% ‐0.2 pt 6,009 +500 6,430 6,510 +80 ‐ ‐ 6.1% 6.0% ‐0.1 pt 5.9% 5.8% ‐0.1 pt 6.3% 6.2% ‐0.1 pt 6.0% 5.9% ‐0.1 pt 5.8% 5.7% ‐0.1 pt 6.2% 6.1% ‐0.1 pt (Note) The end of term appraisal value, direct cap rate, DCF discount rate and DCF terminal cap rate are based on appraisals and survey reports by real estate valuers (CBRE, Daiwa Real Estate Appraisal, Japan Real Estate Institute and Tanizawa Sogo Appraisal Co., Ltd.). Japan Retail Fund Investment Corporation 40 4. Appendix Appraisal Value (3) (76 properties as of the end of the 23rd period) Property number Property Na me Os a ka , Na goya a nd Surroundi ng Area s Book Va l ue (mi l li on JPY) Unrea l i zed profi ts a nd l os s es (mi ll i on JPY) Appra is a l Va lue (mil l ion JPY) Feb. 2013 Aug. 2013 Va ri a ti on Appl ica ble va l ua ti on ra te Dis counted ca s h flow method Di s count Ra te Termi na l Ca p Ra te Feb. 2013 Aug. 2013 Va ri a tion Feb. 2013 Aug. 2013 Va ri a ti on Direct ca pi ta l iza ti on method Di rect Ca p Ra te Feb. 2013 Aug. 2013 Va ria ti on Suburban Single‐tenant Retail Properties (SS) SS‐8 AEON MALL Higa s hi ura 7,195 +3,204 10,400 10,400 ‐ 5.9% 5.9% ‐ 5.5% 5.5% ‐ 6.2% 6.2% ‐ SS‐16 AEON Ta ka ts uki 10,484 ‐914 9,570 9,570 ‐ 6.4% 6.4% ‐ 6.5% 6.5% ‐ 6.8% 6.8% ‐ SS‐17 AEON Ya goto 3,533 ‐273 3,660 3,260 ‐400 6.9% 6.7% ‐0.2 pt 6.5% 6.3% ‐0.2 pt 6.8% 6.6% ‐0.2 pt SS‐19 AEON Ni s hi Ots u 12,448 ‐1,648 10,800 10,800 ‐ 6.4% 6.4% ‐ 6.3% 6.3% ‐ 6.5% 6.5% ‐ SS‐21 AEON TOWN Oga ki 3,865 ‐335 3,900 3,530 ‐370 10.9% 11.2% +0.3 pt 7.6% 7.6% ‐ 20.2% 22.2% +2.0 pt SS‐23 AEON MALL Ts urumi Ryokuchi 26,536 ‐836 25,700 25,700 ‐ 5.4% 5.4% ‐ 5.1% 5.1% ‐ 5.6% 5.6% ‐ SS‐24 AEON MALL Ita mi 19,670 ‐970 17,500 18,700 +1,200 5.3% 5.0% ‐0.3 pt 5.0% 4.8% ‐0.2 pt 5.5% 5.2% ‐0.3 pt SS‐29 Ari o Otori 17,161 ‐1,961 15,400 15,200 ‐200 5.7% 5.6% ‐0.1 pt 5.4% 5.4% ‐ 5.9% 5.9% ‐ SS‐31 AEON MALL Kobe Ki ta 14,364 +1,635 16,000 16,000 ‐ 5.7% 5.7% ‐ 5.3% 5.3% ‐ 5.8% 5.8% ‐ SS‐32 Li fe Ta ihei ji (l a nd wi th l ea s ehol d interes t) 1,304 ‐14 1,290 1,290 ‐ ‐ ‐ ‐ 5.2% 5.1% ‐0.1 pt ‐ ‐ ‐ SS‐33 Li fe Shimodera (land with leasehold interest) 1,717 +32 1,740 1,750 +10 ‐ ‐ ‐ 5.2% 5.1% ‐0.1 pt ‐ ‐ ‐ SS‐34 Li fe Ki s hi be (land with leasehold interest) 1,942 +57 1,990 2,000 +10 ‐ ‐ ‐ 5.1% 5.0% ‐0.1 pt ‐ ‐ ‐ SS‐38 Tecc La nd Neya ga wa (land with leasehold interest) 1,154 +465 1,580 1,620 +40 ‐ ‐ ‐ 5.3% 5.2% ‐0.1 pt ‐ ‐ ‐ SS‐39 Round1 Sta di um Sa ka i Chuo Ka njyo 1,755 +454 2,120 2,210 +90 5.8% 5.7% ‐0.1 pt 6.0% 5.8% ‐0.2 pt 6.1% Subtota l 264,593 +956 263,760 265,550 +1,790 ‐ 2,979 ‐869 2,150 2,110 ‐40 ‐ ‐ ‐ 6.0% 5.8% ‐0.2 pt ‐ 5.9% ‐0.2 pt ‐ ‐ ‐ ‐ 5.7% 5.6% ‐0.1 pt 6.1% 6.0% ‐0.1 pt Other ma jor citi es Urban Multi‐tenant Retail Properties (UM) UM‐12 G DINING SAPPORO Suburban Single‐tenant Retail Properties (SS) SS‐1 AEON Senda i Na ka ya ma 9,193 +1,306 10,500 10,500 ‐ 7.0% 7.0% ‐ 6.3% 6.3% ‐ 6.8% 6.8% ‐ SS‐9 AEON MALL Ka s hi iha ma 12,046 +1,653 13,300 13,700 +400 6.0% 5.9% ‐0.1 pt 6.2% 6.0% ‐0.2 pt 6.3% 6.1% ‐0.2 pt SS‐10 AEON MALL Sa pporo Na ebo 7,108 +1,431 8,540 8,540 ‐ 6.7% 6.7% ‐ 6.3% 6.3% ‐ 6.9% 6.9% ‐ SS‐15 AEON Toba ta SC 5,479 +660 6,110 6,140 +30 7.5% 7.5% ‐ 6.9% 6.9% ‐ 8.0% 8.0% ‐ SS‐18 AEON Na ha SC 10,472 ‐542 9,930 9,930 ‐ 6.1% 6.1% ‐ 5.9% 5.9% ‐ 6.4% 6.4% ‐ SS‐22 AEON Ueda 8,440 ‐770 7,650 7,670 +20 6.1% 6.1% ‐ 6.0% 6.0% ‐ 6.4% 6.4% ‐ SS‐26 Oya ma Yuen Ha rves t Wa l k 8,758 ‐1,258 6,720 7,500 +780 7.6% 7.4% ‐0.2 pt 7.2% 7.2% ‐ 7.7% 7.7% ‐ SS‐28 AEON MALL Sa pporo Ha s s a mu 17,078 ‐178 16,900 16,900 ‐ 5.6% 5.6% ‐ 5.4% 5.4% ‐ 5.8% 5.8% ‐ SS‐35 MrMa x Na ga s a ki 2,457 +362 2,810 2,820 +10 6.7% 6.7% ‐ 6.4% 6.4% ‐ 6.8% 6.8% ‐ SS‐40 Tecc La nd Fukuoka Shi me Honten 4,125 +684 4,770 4,810 +40 6.5% 6.5% ‐ 6.6% 6.5% ‐0.1 pt 6.8% 6.7% ‐0.1 pt Subtota l 88,140 +2,479 89,380 90,620 +1,240 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Portfolio total 678,711 +6,385 677,920 685,097 +7,177 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ (Note) The end of term appraisal value, direct cap rate, DCF discount rate and DCF terminal cap rate are based on appraisals and survey reports by real estate valuers (CBRE, Daiwa Real Estate Appraisal, Japan Real Estate Institute and Tanizawa Sogo Appraisal Co., Ltd.). Japan Retail Fund Investment Corporation 41 4. Appendix Appraisal Value of the Newly Acquired Properties Applicable valuation rate Property mumber Property name Acquisition price (million yen) Unrealized profits and losses (million yen) Appraisal value (million yen) Direct capitalization method Discounted cash flow method Direct cap rate UM‐19 G‐Bldg. Ginza 01 UM‐20 KAWASAKI Le FRONT Discount rate 5,500 +280 5,780 4.0% 30,000 +5,200 35,200 5.0% Terminal cap rate 3.8% 4.2% 5.0% 5.2% (1~10 yea r)5.0% (11 yea r) 5.2% (1~10 yea r)5.6% (11 yea r) 5.8% US‐16 Round 1 Kyoto Kawaramachi 2,800 +250 3,050 5.2% US‐17 Round 1 Hiroshima 2,970 +640 3,610 5.8% 22,300 +800 23,100 4.3% 4.0% 4.3% SM‐13 Colline Bajikouen 3,100 +480 3,580 4.8% 4.5% 5.0% SM‐14 KAMISHIN PLAZA 3,900 +260 4,160 5.9% 5.7% 6.1% SS‐41 Summit Store Nakano Minamidai 3,100 +80 3,180 4.9% 4.6% 5.1% Total 73,670 +7,990 81,660 - - - US‐18 G‐Bldg. Shinsaibashi 03 5.4% 6.0% (Note) The end of term appraisal value, direct cap rate, DCF discount rate and DCF terminal cap rate are based on appraisals and survey reports by real estate valuers (CBRE, Daiwa Real Estate Appraisal, Japan Real Estate Institute and Tanizawa Sogo Appraisal Co., Ltd.). Japan Retail Fund Investment Corporation 42 4. Appendix List of Borrowings (1) (as of Oct. 15, 2013) Balance (millionJPY) Short‐term borrowings Name of lender Breakdown The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 4,439 Mitsubishi UFJ Trust and Banking Corporation 3,767 Sumitomo Mitsui Trust Bank, Ltd. 2,994 2013/2/8 Due date 2014/2/7 24,310 24,310 2008/11/4 2015/3/1 Development Bank of Japan Inc. 4,100 4,100 2009/3/30 2014/3/30 Development Bank of Japan Inc. 12,500 12,500 2009/7/30 2016/7/30 Development Bank of Japan Inc. 16,666 16,666 2009/7/30 2018/7/30 Aflac 5,000 The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 3,143 Mitsubishi UFJ Trust and Banking Corporation 2,714 Sumitomo Mitsui Trust Bank, Ltd. 2,143 Mizuho Bank, Ltd 5,000 The Shinkumi Federation Bank 1,500 The Senshu Ikeda Bank, Limited 1,000 The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 1.0 years Fixed/ Variable Variable Interest rate (Note1) 0.48000% Remaining period (Note2) Spread 0.33% Classfication Name of lender 0.3 years 5,000 8,000 2009/9/4 2009/9/30 6.3 years 0.95000% 0.80% 1.4 years 5.0 years Fixed(Note3) 1.20815% 0.95% 0.5 years 7.0 years Fixed 1.81000% 0.80% 2.6 years 9.0 years Fixed 2.24000% 1.05% 4.3 years 2019/9/4 10.0 years 2014/9/30 Variable Fixed 5.0 years Fixed(Note3) 2.95000% 1.14000% ‐ 0.90% 5.9 years 1.0 years 11,000 2011/2/7 2016/2/5 5.0 years Fixed(Note3) 0.73500% 0.50% 2.3 years 500 5,550 Mitsubishi UFJ Trust and Banking Corporation 4,710 Sumitomo Mitsui Trust Bank, Ltd. 3,740 The Bank of Tokyo Mitsubishi UFJ, Ltd. 7,930 Mitsubishi UFJ Trust and Banking Corporation 6,730 Sumitomo Mitsui Trust Bank, Ltd. 5,340 Sumitomo Mitsui Banking Corporation Borrowing term 3,000 The Hiroshima Bank, Ltd. The Minato Bank, Ltd. Long‐term borrowing 11,200 Borrowing date 11,200 Total Sumitomo Mitsui Banking Corporation Total 5,000 The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 1,982 Mitsubishi UFJ Trust and Banking Corporation 1,682 Sumitomo Mitsui Trust Bank, Ltd. 1,335 The Bank of Tokyo Mitsubishi UFJ, Ltd. 3,965 Mitsubishi UFJ Trust and Banking Corporation 3,365 Sumitomo Mitsui Trust Bank, Ltd. 2,670 The Bank of Fukuoka 2,000 The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 3,875 Mitsubishi UFJ Trust and Banking Corporation 3,487 Sumitomo Mitsui Trust Bank, Ltd. 2,712 The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 5,000 Mitsubishi UFJ Trust and Banking Corporation 4,500 Sumitomo Mitsui Trust Bank, Ltd. 3,500 14,000 20,000 5,000 5,000 10,000 2011/3/31 2011/3/31 2011/3/31 2011/9/22 2011/9/22 2018/9/28 2019/3/29 2018/3/30 7.5 years Fixed(Note3) 8.0 years Fixed(Note3) 7.0 years Fixed(Note3) 2021/9/22 10.0 years 2021/3/22 9.5 years Variable Variable 0.68125% 1.49000% 0.84725% 0.83000% 0.78000% 0.35% 0.40% 0.55% 0.60% 0.55% 5.0 years 5.5 years 4.5 years 7.9 years 7.4 years 2,000 2011/9/22 2016/9/22 5.0 years Fixed(Note3) 0.55975% 0.30% 2.9 years 10,075 2011/9/22 2020/9/18 9.0 years 0.73000% 0.50% 6.9 years 13,000 2011/9/22 2020/3/19 8.5 years Variable Variable 0.68000% 0.45% 6.4 years Long‐term borrowings Classfication Balance (millionJPY) Breakdown Total Borrowing date Due date Borrowing term Fixed/ Variable Interest rate (Note1) Remaining period (Note2) Spread Sumitomo Mitsui Banking Corporation 2,000 2,000 2011/9/30 2020/9/30 9.0 years 0.85000% 0.62% 7.0 years Sumitomo Mitsui Banking Corporation 3,500 3,500 2011/9/30 2018/3/30 6.5 years Fixed(Note3) 0.74725% 0.45% 4.5 years Shinsei Bank Limited 2,500 2,500 2011/9/30 2018/9/28 7.0 years Fixed(Note3) 0.83125% 0.50% 5.0 years Shinsei Bank Limited 4,000 4,000 2011/9/30 2018/9/28 7.0 years Fixed(Note3) 0.83125% 0.50% 5.0 years Resona Bank, Ltd. 2,500 2,500 2011/9/30 2016/9/30 5.0 years Fixed(Note3) 0.56125% 0.30% 3.0 years The 77 Bank, Ltd. 1,000 1,000 2011/9/30 2016/9/30 5.0 years Fixed(Note3) 0.56125% 0.30% 3.0 years The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 3,172 Mitsubishi UFJ Trust and Banking Corporation 2,692 8,000 2011/12/21 2019/12/20 8.0 years Variable 0.63000% 0.40% 6.2 years Sumitomo Mitsui Trust Bank, Ltd. 2,136 The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 2,775 Mitsubishi UFJ Trust and Banking Corporation 2,355 7,000 2011/12/21 7.5 years Variable 0.58000% 0.35% 5.7 years Sumitomo Mitsui Trust Bank, Ltd. 1,869 The Chugoku Bank, Ltd. 3,000 3,000 2011/12/21 2016/12/21 5.0 years Fixed(Note3) 0.77900% 0.30% 3.2 years Resona Bank, Ltd. 2,000 2,000 2011/12/21 2016/12/21 5.0 years Fixed(Note3) 0.77900% 0.30% 3.2 years The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 2,180 Mitsubishi UFJ Trust and Banking Corporation 1,850 Sumitomo Mitsui Trust Bank, Ltd. 1,470 Shinsei Bank Limited 3,500 The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 3,570 Mitsubishi UFJ Trust and Banking Corporation 3,030 Sumitomo Mitsui Trust Bank, Ltd. 2,400 Joyo Bank, Ltd. The Chugoku Bank, Ltd. 2019/6/21 Variable 5,500 2012/5/22 2022/5/20 10.0 years Variable 0.83000% 0.60% 8.6 years 3,500 2012/5/22 2022/5/20 10.0 years Variable 0.83000% 0.60% 8.6 years 9,000 2012/5/22 2017/11/22 5.5 years Fixed(Note3) 0.58623% 0.30% 4.1 years 1,000 1,000 2012/5/22 2017/11/22 5.5 years Fixed(Note3) 0.58623% 0.30% 4.1 years 2,000 2,000 2012/5/22 2017/11/22 5.5 years Fixed(Note3) 0.58623% 0.30% 4.1 years The Bank of Fukuoka 3,000 3,000 2012/9/14 2017/9/14 5.0 years Fixed(Note3) 0.47000% 0.20% 3.9 years The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 2,000 2,000 2012/9/28 2017/9/29 5.0 years 0.52000% 0.20% 4.0 years The Bank of Fukuoka 1,000 1,000 2012/10/2 2017/10/2 5.0 years Fixed(Note3) 0.47125% 0.20% 4.0 years Development Bank of Japan Inc. 1,000 1,000 2012/10/2 2024/10/1 12.0 years Fixed 1.64000% 0.60% 11.0 years Development Bank of Japan Inc. 3,000 3,000 2012/10/2 2020/10/1 8.0 years Fixed 1.03500% 0.40% 7.0 years The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 1,000 1,000 2012/10/2 2022/10/2 10.0 years Fixed 1.20000% ‐ 9.0 years Sumitomo Mitsui Banking Corporation 2,000 2,000 2012/10/2 2020/10/2 8.0 years Fixed(Note3) 1.01875% 0.40% 7.0 years The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 1,190 Mitsubishi UFJ Trust and Banking Corporation 1,010 3,000 2012/10/2 2020/10/2 8.0 years Fixed(Note3) 1.01875% 0.40% 7.0 years 4,500 2012/10/2 2020/4/2 7.5 years Variable 0.58000% 0.35% 6.5 years 3,000 2012/10/2 2020/4/2 7.5 years Variable 0.58000% 0.35% 6.5 years Sumitomo Mitsui Trust Bank, Ltd. Fixed 800 The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 1,784 Mitsubishi UFJ Trust and Banking Corporation 1,514 Sumitomo Mitsui Trust Bank, Ltd. 1,202 Sumitomo Mitsui Banking Corporation 3,000 (Note 1) Applied interest rate is based on the interest rate as of Oct. 15, 2013. (Note 2) Remaining period is calculated as of Oct. 15, 2013. (Note 3) Pursuant to interest rate swap agreements, the variable interest rate is fixed for either a part or entire outstanding borrowings. Japan Retail Fund Investment Corporation 43 4. Appendix List of Borrowings (2) (as of Oct. 15, 2013) Name of lender The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 2,974 Mitsubishi UFJ Trust and Banking Corporation 2,524 Sumitomo Mitsui Trust Bank, Ltd. 2,002 The Daishi Bank, Ltd. 1,500 The Ashikaga Bank , Ltd. 1,000 The Bank of Yokohama, Ltd. Shinkin Central Bank Long‐term borrowing Balance (millionJPY) Breakdown Total 7,500 Borrowing date Due date 2012/10/2 2019/10/2 Borrowing term 7.0 years Fixed/ Variable Variable Interest rate (Note1) 0.53000% Spread 0.30% Remaining period (Note2) 6.0 years 2,500 500 The Yamaguchi Bank, Ltd. 500 The Higashi‐Nippon Bank, Limited. 500 2012/10/2 2017/10/2 5.0 years Fixed(Note3) 0.47125% 0.20% 5.0 years Fixed 0.53000% 0.18% 4.2 years 1,500 2012/12/28 2018/12/28 6.0 years Fixed(Note3) 0.63250% 0.20% 5.2 years 5,000 5,000 2013/2/28 2022/2/28 9.0 years Fixed(Note3) 1.20194% 0.50% 8.4 years Sumitomo Mitsui Banking Corporation 5,000 5,000 2013/3/29 2022/3/31 9.0 years Fixed(Note3) 1.21578% 0.50% 8.5 years Development Bank of Japan Inc. 3,000 3,000 2013/9/30 2023/4/7 9.5 years 1.28000% 0.43% 9.5 years The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 1,000 1,000 2013/10/7 2.24175% 0.90% 15.0 years Development Bank of Japan Inc. 1,500 1,500 2013/10/7 2024/4/5 10.5 years Fixed 1.45000% 0.53% 10.5 years The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 1,000 1,000 2013/10/7 2023/10/6 10.0 years Fixed 1.33000% 0.48% 10.0 years The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 1,189 Mitsubishi UFJ Trust and Banking Corporation 1,009 1,387 Mitsubishi UFJ Trust and Banking Corporation 1,177 Fixed 2028/10/6 15.0 years Fixed(Note3) 3,000 2013/10/7 2023/10/6 10.0 years Fixed(Note3) 1.35675% 0.48% 10.0 years 1,346 Sumitomo Mitsui Trust Bank, Ltd. 1,068 Borrowing date 4,000 2013/10/7 Due date Borrowing term Fixed/ Variable Interest rate (Note1) 2016/10/7 3.0 years Variable 0.44051% Spread 0.30% Remaining period (Note2) 3.0 years 299,151 3,500 2013/10/7 2023/4/7 9.5 years Fixed(Note3) 1.26050% 0.43% 9.5 years 310,351 5.0 years 934 Development Bank of Japan Inc. 1,500 1,500 2013/10/7 2023/4/7 1.26000% 0.43% 9.5 years Sumitomo Mitsui Banking Corporation 2,000 2,000 2013/10/7 2022/10/7 9.0 years Fixed(Note3) 1.18425% 0.40% 9.0 years Mizuho Bank, Ltd 1,500 1,500 2013/10/7 2022/10/7 9.0 years Fixed(Note3) 1.18425% 0.40% 9.0 years Mizuho Trust & Banking Co., Ltd. 1,000 1,000 2013/10/7 2022/10/7 9.0 years Fixed(Note3) 1.18425% 0.40% 9.0 years The Yamaguchi Bank, Ltd. 1,000 1,000 2013/10/7 2021/10/7 8.0 years 0.99000% 0.30% 8.0 years THE NISHI‐NIPPON CITY BANK,LTD. 1,000 1,000 2013/10/7 2021/10/7 8.0 years Fixed(Note3) 0.98800% 0.30% 8.0 years The Bank of Tokyo‐Mitsubishi UFJ, Ltd. 1,189 Mitsubishi UFJ Trust and Banking Corporation 1,009 0.30% 7.5 years Sumitomo Mitsui Trust Bank, Ltd. 1,586 Mitsubishi UFJ Trust and Banking Corporation Total 801 The Bank of Tokyo‐Mitsubishi UFJ, Ltd. Sumitomo Mitsui Trust Bank, Ltd. The Bank of Tokyo‐Mitsubishi UFJ, Ltd. Total / Average 2,500 2012/12/28 2017/12/29 Breakdown 4.0 years Sumitomo Mitsui Banking Corporation Sumitomo Mitsui Trust Bank, Ltd. Balance (millionJPY) Name of lender Total 3,000 500 The Gunma Bank, Ltd. Classfication Long‐term borrowing Classfication 3,000 2013/10/7 2021/4/7 9.5 years Fixed Fixed 7.5 years Fixed(Note3) 0.94425% 801 Shinkin Central Bank 1,500 1,500 2013/10/7 2020/10/7 0.82000% 0.22% 7.0 years The Norinchukin Bank 1,500 1,500 2013/10/7 2020/4/7 6.5 years Fixed(Note3) 0.75425% 0.20% 6.5 years Joyo Bank, Ltd. 1,000 1,000 2013/10/7 2020/4/7 6.5 years Fixed(Note3) 0.75425% 0.20% 6.5 years The Bank of Fukuoka 1,000 1,000 2013/10/7 2019/10/7 6.0 years Fixed(Note3) 0.68550% 0.18% 6.0 years The 77 Bank, Ltd. 1,000 1,000 2013/10/7 2019/10/7 6.0 years Fixed(Note3) 0.68550% 0.18% 6.0 years 7.0 years Fixed (Note 1) Applied interest rate is based on the interest rate as of Oct. 15, 2013. (Note 2) Remaining period is calculated as of Oct. 15, 2013. (Note 3) Pursuant to interest rate swap agreements, the variable interest rate is fixed for either a part or entire outstanding borrowings. Japan Retail Fund Investment Corporation 44 4. Appendix Financial Status Status of lenders (as of Oct. 15, 2013) Investment corporation bonds Name Issue Amount (million JPY) Issue date Redemption Date Term Interest Maturity method Series 2 of Unsecured Corporate Bonds 15,000 Feb 9, 2005 Feb 9, 2015 10years 1.73% Bullet maturity amortization (Note) Series 3 of Unsecured Corporate Bonds 10,000 Feb 22, 2006 Feb 22, 2016 10years 2.02% Bullet maturity amortization (Note) Series 6 of Unsecured Corporate Bonds 15,000 May 23, 2007 May 23, 2017 10years 2.17% Bullet maturity amortization (Note) Total 40,000 (Note) Redemption can be made at any time after the next day of issuance. Utilization of negative goodwill Reserve for dividends (Negative goodwill) Credit ratings 2,326 million JPY (as of the end of Aug. 2013) Basic Utilization Policy Remains Unchanged A Discrepancy between tax and accounting books 1. Excess amortization due to differences in book value, 2. Impairment losses on fixed assets, 3. Asset write-off obligations B Loss on write-off due to renewal and loss on sales due to the replacement of assets C Temporary items such as reduced rent accompanying change in tenants, etc. Credit rating agency R&I Standard & Poor’s Moody’s Issuer rating Long-term rating AA- (Stable) AA- (Stable) A (Note) (Stable) A (Stable) A3 (Stable) A3 (Stable) (Note) Refers to long‐term issuer rating. Short‐term issuer rating of A‐1. Japan Retail Fund Investment Corporation 45 4. Appendix Features of Our Portfolio Assets Major properties JRF green initiatives We specialize in investing in a wide variety of retail properties varying from large‐ scale retail properties to road‐side stores and specialty buildings in favorable locations Portfolio assets 84properties (as of Oct. 15, 2013) We are committed to contributing to local communities and to reducing environmental burden Greening of facilities ~Adding greenery to the main entrance and exterior walls mozo wonder city GYRE Energy saving and Co2 reduction ~Installing solar panels and introducing LED lighting AEON Mall Itami Narupark GRESB (Global Real Estate Sustainability Benchmark) JRF was designated as a “Green Talk” company, which is the rank given to real estate operators making excellent efforts for “Management and Policy,” in the 2013 GRESB survey of environmental responsiveness for real estate operators. Japan Retail Fund Investment Corporation 46 4. Appendix List of Indices (as of Aug. 31, 2013) JRF is a constituent of following indices MSCI World Index MSCI World Index is an index created and published by Morgan Stanley Capital International (MSCI). It covers large‐ and middle‐capital stocks which are listed in 24 developed countries and can be invested. Approximately 1,600 stock from 24 developed countries are accepted and this covers approximately 85% of developed markets. This index is a basis for other indices ,including MSCIEAFE, and is used by investors from all over the world. A various investment products related to this index are provided. GPR 250 Index/ GPR 250 REIT Index This is an index created and published by Global Property Research (GPR). GPR Index consists of representative and highly liquid 250 stocks out of all stocks that satisfy criterion set forth by GPR among all listed real estate companies (including REITs). GPR 250 REIT Index is an index that consists of only REITs out of 250 constituents of GPR 250 Index. FTSE EPRA/ NAREIT Global Real Estate Index FTSE EPRA/ NAREIT Global Real Estate Index series is developed by EPRA, NAREIT and FTSE, and is widely used as a benchmark for international real estate investment. JRF is incorporated into a number of indices in this series, including FTSE EPRA/NAREIT Global Index, FTSE EPRA/NAREIT Asia Pacific Index, FTSE EPRA/NAREIT Developed Global REITs Index. UBS Global Real Estate Index/ UBS Global Real Estate Investors Index This is an index created and published by UBSAG. UBS Global Real Estate Index consists of listed real estate companies that satisfy criterion out of all public real estate companies in the world. UBS Global Real Estate Investors Index consists of only REITs out of all constituents of UBS Global Real Estate Index, excluding developers. S&P Global REIT Index/ S&P Developed REIT Index This is an index created and published by Standard & Poor's (S&P). S&P Global REIT Index consists of real estate investment trusts (REIT) out of more than 530 real estate companies from 36 countries contained in S&P Global Property index. S&P Developed REIT Index consists of REITs in developed market as defined by S&P Dow Jones Indices out of all REITs in S&P Global REIT Index. Japan Retail Fund Investment Corporation 47 4. Appendix Investor Analysis (1) Top 20 unitholders as of the end of August 2013 As of the end of Aug. 2013 Rank Name Number of units held Ownership ratio As of the end of Feb. 2013 Number of units held Ownership ratio 1 Ja pa n Trus tee Servi ces Ba nk, Ltd. (Trus t Account) 410,115 19.72% 398,121 19.14% 2 Trus t & Cus tody Servi ces Ba nk, Ltd. (Securi ti es Inves tment Trus t Account) 134,747 6.48% 132,124 6.35% 3 The Nomura Trus t a nd Ba nki ng Co., Ltd. ( Inves tment Trus t Account) 130,452 6.27% 117,540 5.65% 4 The Ma s ter Trus t Ba nk of Ja pa n, Ltd. (Trus t Account) 128,089 6.16% 116,549 5.60% 5 NOMURA BANK (LUXEMBOURG) S.A. 84,747 4.07% 88,200 4.24% 6 THE BANK OF NEW YORK, TREATY JASDEC ACCOUNT 55,986 2.69% 44,877 2.15% 7 Mi ts ubi s hi Corpora ti on 35,900 1.72% 35,900 1.72% 8 STATE STREET BANK AND TRUST COMPANY 505223 30,896 1.48% 35,811 1.72% 9 STATE STREET BANK ‐ WEST PENSION FUND CLIENTS ‐ EXEMPT 25,452 1.22% 23,873 1.14% 10 STATE STREET BANK AND TRUST COMPANY 24,904 1.19% 42,765 2.05% 11 STATE STREET BANK AND TRUST COMPANY 505225 24,146 1.16% 23,892 1.14% 12 SIX SIS LTD. 23,644 1.13% 25,106 1.20% 13 STATE STREET BANK WEST CLIENT ‐ TREATY 22,190 1.06% 22,033 1.05% 14 MELLON BANK, N.A. AS AGENT FOR ITS CLIENT MELLON OMNIBUS US PENSION 21,823 1.04% 17,101 0.82% 15 Mi zuho Securi ti es Co., Ltd. 20,302 0.97% 10,547 0.50% 16 THE BANK OF NEW YORK MELLON AS AGENT BNYM AS EA DUTCH PENSION OMNIBUS 140016 19,473 0.93% 20,778 0.99% 17 The Gi bra l ta r Li fe Ins ura nce Co., Ltd. (Genera l Account J‐REIT) 19,185 0.92% 20,133 0.96% 18 SSBT OD05 OMNIBUS ACCOUNT ‐ TREATY CLIENTS 15,649 0.75% 18,046 0.86% 19 North Pa ci fi c Ba nk, LTD. 14,212 0.68% 14,212 0.68% 20 MELLON BANK TREATY CLIENTS OMNIBUS 13,534 0.65% 8,677 0.41% Total 1,255,446 60.38% 1,216,285 58.49% (Note) Units issued outstanding Aug. 2013 Period (23rd) : 2,079,198 units Feb. 2013 Period (22nd) : 2,079,198 units Japan Retail Fund Investment Corporation 48 4. Appendix Investor Analysis (2) Ownership ratio by investor type Number of unitholders by investor type (Note 1) Excludes retail investors and others (Note 2) The figures in parentheses represent the total number of unitholders including retail and other investors Japan Retail Fund Investment Corporation 49 4. Appendix Historical Performance of Investment Unit Price Unit price and trading volume trends since IPO (Mar. 12, 2002 to Feb. 4, 2014) Recent trends (Sep. 1, 2011 to Feb. 4, 2014) 173.6% 146.3% 146.3% (Note 1) Closing price basis (Note 1) (Note 2) Since a four‐for‐one investment unit split was carried out on March 1, 2010, the post‐split unit price is shown. (Note 2) Left axis describes relative unit price trends that is closing price on Sep. 1, 2011 to be assumed as 100% (Source) Bloomberg (Source) Bloomberg Japan Retail Fund Investment Corporation Closing price basis 50 4. Appendix Management Company Structure Major shareholders Employees Asset Manager: 94 staff members (excluding part‐time directors and employees) Qualification holders: Shares % in total issue Shares % in total issue 5,100 51.0% 4,900 49.0% Real‐estate transaction specialists First‐class architects Real estate appraisers CFA CMA Tax accountants MBA ARES certified master (Note) As of the end of Aug. 2013 Management structure 40 6 6 1 6 2 3 30 (Note) As of Oct. 1, 2013 Shareholders’ meeting Auditors Auditors’ Meeting Board of Directors President & CEO Deputy President Compliance Committee Internal Audit Office (Note) Investment Committee Compliance Office Retail Division Industrial Division Stakeholder Transactions Review Committee Human Resources and Corporate Services Dept. Finance Dept. Operation Planning & Accounting Dept. Research Dept. Strategic Planning Dept. (Note) The Deputy President concurrently serves as the head of the Internal Audit Office. Japan Retail Fund Investment Corporation 51