COMFORIA RESIDENTIAL REIT, INC · Investment area Unit type Building age Nearest train station (on foot) 1 On-going influx of “millennials” into the Tokyo 23 Wards 2 Stable rate

COMFORT

URBAN

SMART

September 2014

~Investor Presentation~8th Fiscal Period (ended July 2014)

COMFORIA RESIDENTIAL REIT, INC

2

Table of Contents

5. Appendix

P&L: 8th Period -23-

Balance Sheet: 8th Period -24-

8th ~ 9th Period Performance Forecast -25-

CRR Characteristics -26-

“COMFORIA” Series -27-

“COMFORIA” Series Representative Properties -28-

Portfolio Policy -29-

# of Net migration and Household in Tokyo 23 Wards -30-

Demand & Price Stability of Tokyo 23 Ward Assets -31-

Portfolio Map (as at 8th FP end) -32-

Portfolio List -33-

Appraisal Value -36-

Occupancy and Rent Rates -39-

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

Status of Interest-bearing Debt (as at 8th FP end) -42-

Unitholders (as at 8th FP end) -43-

Historical Unit Price -44-

Agenda of the 3rd Unitholders’ Meeting -45-

Governance -46-

Overview of CRR -47-

Overview of Asset Management Company -48-

1. 8th Fiscal Period Highlights

Financial Highlights - 4 –

Portfolio Highlights - 5 -

2. 8th Fiscal Period Results

Financial Results for the 8th Fiscal Period - 7 -

Stable Occupancy Rate - 8 -

Fluctuations in Rent Rate - 9 -

External Growth-①: PO Effect & Acquisition

Capacity -10-

External Growth-②: Post-offering Acquisitions -11-

Property Management Initiatives -12-

Financial Strategy-①: Borrowings & Bond Issue -13-

Financial Strategy-②: Financial Indicators

(as at 8th FP end) -14-

Expansion of Retail Investor Base -15-

3. Future Strategy

External Growth Targets -17-

Solid External Growth-①: Historical Performance -18-

Solid External Growth-②: Opportunities

& Pipeline -19-

4. Performance Forecast

Performance Forecast -21-

3

1. 8th Fiscal Period Highlights

4

603,192625,528

685,733

16,205

16,813 17,074

6th Period 7th Period 8th Period

Financial Highlights

Higher unitholder value attributed to substantial portfolio growth

Portfolio growth

55 assets

80 assets1.6x1.6x

93.3%

92.5%

Investment targets: primarily properties in the Tokyo 23 Wards

7th Period end

5.78% 5.60%

8th Period end

Increased DPU

Rising NAV/unit* for 2 consecutive periods

Total LTV*

6th Period end

52.7% 54.4% 51.6%

1.6 fold asset growth

Rising DPU for 2 consecutive periods

Increased NAV

Tokyo 23 Wards

Acquisition price

74.5bn

116.2bn(yen)

(yen)

(yen)

NOI yield (appraisal basis)*

(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.

7th Period end 8th Period end

5

Under 5 mins58.6%

5 to 10 mins40.4%

Over 10 mins1.0%

Single44.4%

Compact40.5%

Family1.8%

Large11.4%

Stores1.9%Central Tokyo

44.8%

Sub-central Tokyo47.7%

Tokyo Metropolitan

area3.2%

Other major cities4.4%

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

Over 90% of assets are located in Tokyo 23 Wards

7.8 yrsAvg. building age

4.9minAvg. distance

92.5%Tokyo 23 Wards

84.9%Single / Compact

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

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

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

Acquired newer properties developed by TLC

COMFORIA AKASAKA

COMFORIA ASAKUSABASHI

COMFORIA RYOGOKU SOUTH

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

3 to 5 years4.2%

Under 3 years5.0%

5 to 10 years80.0%

Over 10 years10.7%

6

2. 8th Fiscal Period Results

7

+ ¥405

Actual DPU

¥17,074+ ¥114 △ ¥45

Projected DPU(Mar’14)¥16,600

Revenue from leasing business Profit/loss from leasing business Operating income Ordinary income

Currentnet incomeRevenue from

leasing businessOther revenue from

leasing businessLeasing business

expenses

Operating expenses (non-

leasing business)

Interest payable, etc.

Projection(Mar’14) ¥3,844mn ¥161mn ¥1,546mn ¥377mn ¥410mn ¥1,671mn

8th Period actual ¥3,827mn ¥189mn ¥1,551mn ¥361mn ¥386mn ¥1,718mn

Differential △ ¥16mn + ¥28mn + ¥4mn △ ¥16mn △ ¥24mn + ¥47mn

Basis for change Occupancy ↓Acquisitions ↑

Key money /renewals, etc. ↑

Leasing fees ↓Acquisitions ↑ Mgmt. fees↓ Financing costs↓ ―

Financial Results for the 8th Fiscal Period

Comparable projection (Mar’14) vs. actual resultsComparable projection (Mar’14) vs. actual results

Increased revenue from key money and renewal fees, etc. despite a slight

decrease in occupancy

Impacts from new acquisitions, etc.

Property mgmt. REIT mgmt.

Larger profit distribution due to lower than expected management and

financing costs

Surpassed initial profit projections through earnings growth and cost reduction measures

8

6th FP 7th FP 8th FP

Stable Occupancy Rate

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

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’14Total 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’13Total portfolio(same month year ago) 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%

85.0%

90.0%

95.0%

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

85.0%

90.0%

95.0%

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

9

Fluctuations in Rent Rate

On-going recovery of rent rates attributed to higher contracted rent upon retenanting vacant space

Historical rent rates (8th FP)Historical rent rates (8th FP) Rent fluctuation from retenanting & renewals (5~8th FP)Rent fluctuation from retenanting & renewals (5~8th FP)

Retenanting

Lease renewals

Higher portfolio rent (55 assets at the beginningof the term) versus the previous period

(# of contracts basis)

(# of contracts basis)

(yen)

Rent (month/tsubo) 7th end Feb’14 Mar’14 Apr’14 May’14 Jun’14 Jul’14

Total portfolio(incl. 25 interim acquisitions) 12,656 12,938 12,833 12,842 12,833 12,858 12,849

Portfolio at beginning of term (55 assets) 12,656 12,663 12,669 12,672 12,661 12,674 12,660

(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.

Acquired 22 properties using proceeds from PO Acquired COMFORIA

NIBANCHO

+ 0.05% + 0.03% △0.09% + 0.10% △0.11%

MoM* (55 assets at beginning of term)

+ 0.05%

Net increase in contracted rent ratesof retenanted space

Acquired COMFORIA SHINSAKAE &

KITAHORIE

# of rate decrease

67.0%

# of rate decrease

59.3%

# of rate decrease

55.5%# of rate

decrease42.4%

No change14.6% No change

13.8%No change

15.7%No change

12.4%

# of rate increase

18.5%# of rate increase

27.0%

# of rate increase

28.7%# of rate increase

45.2%

0%

20%

40%

60%

80%

100%

5th FP 6th FP 7th FP 8th FP

# of rate decrease

1.6%

# of rate decrease

1.5%

# of rate decrease

0.8%

# of rate decrease

0.3%

No change98.4%

No change98.5%

No change99.2%

No change99.6%

# of rate increase

0.1%

0%

20%

40%

60%

80%

100%

5th FP 6th FP 7th FP 8th FP

10

93.3%94.6%54.4%

50.1%

85.0%

90.0%

95.0%

100.0%

40.0%

45.0%

50.0%

55.0%

60.0%

Pre‐offering Post‐offering Target

Ratio of Tokyo 23 Ward assets Total LTV

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

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%

Stable portfolio revenueStable portfolio revenue Enhanced portfolio qualityEnhanced portfolio quality

Acquisition price Unrealized gain Ratio of Tokyo

assets Single/Compact Avg. building age

nearest train station (on foot)

NOI yield (appraisal)

Surplus acquisition capacity

A drop in total LTV opened up acquisition capacity

Approx. ¥14bn surplus capacity (up to LTV 55%)

More opportunities for interim growth

PO effect

DPU is expected to surpass on-going basis targets of ¥4,000 per unit over

the short-term

Over 90% of assets are in the Tokyo 23

Wards

Effects of public offering

Acquisition capacity of approx.¥14bn (up to LTV55%)

OngoingbasisLTV

11

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

External Growth-②: Post-offering Acquisitions

COMFORIA SHIN-SAKAE(acquired 20-Mar-2014)

COMFORIA SHIN-SAKAE(acquired 20-Mar-2014)

COMFORIA KITAHORIE(acquired 28-Mar-2014)

COMFORIA KITAHORIE(acquired 28-Mar-2014)

COMFORIA NIBANCHO(acquired 30-Jun-2014)

COMFORIA NIBANCHO(acquired 30-Jun-2014)

+ =

Growth driver & strategyGrowth driver & strategy

1 Leveraged acquisition capacity

Approx. ¥14bnPost-offeringUp to LTV55%

Approx. ¥9.5bnAs at 8th FP endUp to LTV55%

2 Balanced approach for acquisitions

Major regional cities

Bancho area (Tokyo 23 Wards)

For stronger profitability

To enhance portfolio quality

Nagoya city Osaka city Tokyo, Chiyoda ward

NOI yield of all 3 properties

Avg. 5.46%

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

Avg. NOI yield: 5.84%

Acquired through asset manager’s proprietary source Acquired from the sponsor’s group

Major regional citiesMajor regional cities Tokyo 23 WardsTokyo 23 Wards

Profitability

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

12

Lowered building management feesLowered building management fees

Property Management Initiatives

Property renovationProperty renovation

Improvement of tenant serviceImprovement of tenant service

Reduced running costs at 4 properties by streamlining building management activities

Approx. ¥2mn p.a.

Tile replacement

Exterior paintwork

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

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

Stairwell paintwork

Currently renovating COMFORIA LIV KOMAE as a measure to keep its competitiveness in the market

Before After

13

9,925

6,300 4,650

2,000

12,495

1,350

5,500 5,500

3,700 5,500 5,000

3,0006,000

1,000

1,000

2,900

0

5,000

10,000

15,000

20,000

8thPeriod

9thPeriod

10thPeriod

11thPeriod

12thPeriod

13thPeriod

14thPeriod

15thPeriod

16thPeriod

17thPeriod

18thPeriod

19thPeriod

20thPeriod

21thPeriod

22thPeriod

23thPeriod

24thPeriod

No change Funding (loans) Funding (bonds) Repayment

Financial Strategy-①: Borrowings & Bond Issue

Diversified funding sources by issuing REIT bonds while extending maturity of current debt and fixing interest rates

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 investorsTerm 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

REIT bond issuance

Financing activities for 8th FPFinancing activities for 8th FP

New borrowing and refinancing

①Loans for follow-on offering

③Issuing REIT bonds

Drawdown date Activity Remarks

Feb’14 Loans for follow-on offering - Added 5 new bank syndicates (total 12 banks)

Jun’14 Refinancing, etc. to extend debt maturity

- Extended maturity of existing debtAvg. maturity (refinanced portion):

¥[email protected] yrs → ¥[email protected] yrs (as at Jun’14)

②Refinancing, etc. to extend debt maturity

①

②

③

14

Mitsubishi UFJ Trust and Banking11,590

Sumitomo Mitsui Trust Bank

10,025

Development Bank of Japan

9,590

Mizuho Bank9,590

The Bank of Tokyo-Mitsubishi

UFJ9,590

Sumitomo Mitsui Banking

Corporation4,735

Mizuho Trust & Banking

2,000

The Norinchukin Bank1,500

Tokyo Tomin Bank1,300

The Bank of Fukuoka

1,000

The 77 Bank500 The Daishi Bank

500

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

Interest-bearing debt statusInterest-bearing debt status

7th FP(Jan’14 end)

8th FP(Jul’14 end)

Differential

Interest-bearing debt balance ¥43.72bn ¥64.92bn + ¥21.20bn

Avg. maturity 3.5 yrs 4.4 yrs + 0.9 yrs

Weighted avg. interest rate 1.02% 0.91% ▲ 0.11 pt

Total LTV 54.4% 51.6% ▲ 2.8 pt

Appraisal LTV 52.1% 49.8% ▲ 2.3 pt

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

Outstanding debt balance by lender (as at 8th FP end)Outstanding debt balance by lender (as at 8th FP end)

Key financial indicatorsKey financial indicators

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

(million yen)

2.9 yrs2.5 yrs

3.5 yrs

4.4 yrs

1.01% 1.00% 1.02%0.91%

0.0 yrs

1.0 yrs

2.0 yrs

3.0 yrs

4.0 yrs

5.0 yrs

0.5%

0.7%

0.9%

1.1%

1.3%

1.5%

IPO 6th FP end 7th FP end 8th FP end

Term to maturity Weighted avg. interest

70.5% 70.5%84.0%

100.0%

29.5% 29.5%16.0%

0%

20%

40%

60%

80%

100%


Fixed Variable

100.0%85.3%

97.7% 100.0%

14.7%2.3%

0%

20%

40%

60%

80%

100%


Long‐term Less than 1‐year

15

Expansion of Retail Investor Base

Unit splitUnit split

4-for-1 unit split

Unit price* ¥754,400 ¥188,600

Increment 1 unit 4 units

Pre-split Post-split

(Note) Above pre-split unit price was reverse calculated from the closing price (post-split) as at the end of the 8th fiscal period.

Retail investor seminarsRetail investor seminars

Hosted a total of 8 seminars in Tokyo and other major cities during the 8th FP and 930 retail investors attended

Effective date of unit split: 1-Aug-2014

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

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

Date Event Location # of attendees

17-Apr "Retail Investor Seminar" Toyama approx. 40

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

30-May "Retail Investor Joint IR Seminar" Fukuoka approx. 160

7-Jun "Retail Investor Joint IR Seminar" Tokyo approx. 150

25-Jun "Retail Investor Seminar" Osaka approx. 50

12-Jul "Retail Investor Joint IR Seminar" Tokyo approx. 150

to lower the barrier of entry

16

3. Future Strategy

17

71.2 74.5

111.9 116.2

IPOFeb'13

7th FPJan'14

Post-POFeb'14

8th FPJul'14

within 1 year within 5 years

External Growth Targets

Growth curve since IPO Future targets

130

Medium-term targets

¥200bn(acquisition price basis)

Asset size

Generally retain 90% ratio of Tokyo 23 Ward assets

Portfolio

Yields are in downtrend Prime properties in the Tokyo 23 Wards

Make selective investments to ensure that over 90% of all portfolio assets are in the Tokyo 23 Wards

Yields are higher than Tokyo assets despite a general downtrend

Prime properties in major regional cities

Continue selective investments in prime properties

Property market trends Portfolio policy

Achieve milestone of ¥130bn in asset size by maximizing sponsor pipeline and acquisitions using proprietary sources

96.3% 93.3%

94.6% 92.5%

Asset size & ratio of Tokyo 23 Ward assets

200

Tokyo 23 Ward assetsOver 90%(billion yen)

Over ¥4,000 per unitDPU target

(on-going basis)

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

18

¥3,860

¥4,051

¥4,203¥4,268

3,700

3,800

3,900

4,000

4,100

4,200

4,300

IPO forecast(6th FP forecast)

6th FP actual 7th FP actual 8th FP actual

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

(Note) Figures for “NAV per unit” and “DPU” are adjusted for the 4-for-1 unit split.

Maintain and surpass ¥4,000 DPU target

IPO target level(pre-split: ¥15,000~¥15,500)

Upward target revision(pre-split: ¥15,500~¥16,000)

Upward target revision(pre-split: over ¥16,000)

6th FP 7th FP 8th FP Future targets

¥71.225bn ¥74.563bn ¥116.239bnAcquisition price

53 properties 55 properties 80 propertiesTotal assets

¥150,798 ¥156,382 NAV per unit* ¥171,433

Actualized external growth with accretive effects on unitholder value

Continue external growth that augments

unitholder value

Aim to further improve performance

Solid External Growth-①: Historical Performance

Historical DPU*

19

Sponsor-affiliated properties(*2)

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

Area # of units

Iwato-cho, Shinjuku-ku, Tokyo Completed 46

Taihei, Sumida-ku, Tokyo Completed 46

Kamata, Ota-ku, Tokyo 204

Kita-Shinagawa, Shinagawa-ku, Tokyo 97

Aobadai, Meguro-ku, Tokyo 124

Higashi-Kanda, Chiyoda-ku, Tokyo 131

Nishi-Magome, Ota-ku, Tokyo 111

Nishi-ku, Osaka-shi, Osaka 84

Chuo-ku, Osaka-shi, Osaka TBD

Sponsor-developed propertiesCRR assets in Tokyo 23 Wards

Sponsor-developed properties

Location # of properties

# of units

Tokyo 23 Wards 6 369

Kansai area 2 178

Godokaisha Ao Akua-Elua

Real estate TBI

¥3.993bn

Non-recourse loan¥2.755bn

Anonymous partnership equity

¥1.238bn

# of properties / units 1 property104 units

Total CRR contribution ¥184.5mn

Sign-off date of Partnership Agmt. 27-Nov-2013

Duration of RoFR 31-Aug-2015

Total appraisal value (*3) ¥3.9bn

Avg. NOI yield (appraisal) (*3) 5.5%

RoFR(*1) for ACROSS Itabashi Kuyakusho-mae

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

(*2) Sponsor-affiliated properties refers to assets owned by the sponsor orsponsor’s group as well as any assetsowned by SPCs where the asset management is delegated to the sponsor’s group.

(*1) No commitments have been made by CRR to acquireany of the above properties.

(*3) Figures for total appraisal value and avg. NOI yield are based on disclosures upon obtaining right of first refusal.

20

4. Performance Forecast

21

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 forecast8th FP actual performance vs. 9th FP forecast

Revenue from leasing business Profit/loss from leasing business Operating income Ordinary income

Currentnet incomeRevenue from

leasing businessOther revenue from

leasing businessLeasing business

expenses

Operating expenses (non-

leasing business)

Interest payable, etc.

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

Basis for change New acquisitions↑(full year basis) Renewal fees, etc.↓

New properties ↑Repair costs ↓Leasing fees, etc.↓

Mgmt. fees ↑Sales tax, etc.↑

New borrowings↑Financing costs ↓

+ ¥189△ ¥259

+ ¥23

8th FP Actual DPU (Jul’14)

post-split: ¥4,268 (¥17,074)

9th FP DPU forecast(Jan’15)

¥4,220

Property mgmt. REIT mgmt.

9th FP initial DPU projection

(Mar’14)

¥4,100

Differential: +¥120

22

5 ．Appendix

23

P&L: 8th Period

(thousand yen)

7th Fiscal Period(period ending Jan 2014)

8th Fiscal Period(period ending Jul 2014) Period-on-period change

Operating revenue 2,673,839 4,017,448 1,343,608Income from leasing business 2,581,691 3,827,676 1,245,984Other income from leasing business 85,618 186,413 100,795Income from silent partnership 6,529 3,358 ▲ 3,171

Operating expense 1,246,173 1,912,363 666,190Leasing business expenses 963,688 1,551,354 587,666Asset manager's fee 169,197 196,535 27,338Other operating expenses 113,287 164,474 51,186

Operating profit 1,427,666 2,105,084 677,418Non-operating income 405 453 47Non-operating expense 294,629 385,834 91,205

Loan Interest payable 218,737 276,595 57,858Bond Interest payable 0 52 52Others 75,892 109,187 33,294

Ordinary profit 1,133,442 1,719,702 586,260EBIT 1,133,442 1,719,702 586,260Income tax 934 971 37

Income tax 932 972 40Income taxes deferred 2 0 ▲ 2

Net income 1,132,507 1,718,731 586,223Deferred income at beginning of term 38 5 ▲ 32Unappropriated 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 1,718,737 586,196Issued units 67,361 units 100,664 units 33,303 unitsDPU 16,813 yen 17,074 yen 261 yen

24

Balance Sheet: 8th Period7th Fiscal Period

(period ending Jan 2014)8th Fiscal Period

(period ending Jul 2014) Period-on-period change

《Assets》 (thousand yen)Current assets 3,926,683 6,792,765 2,866,081

Cash and bank deposits 1,241,080 2,862,356 1,621,276Cash and bank deposits in trust 2,654,711 3,839,594 1,184,882Other current assets 30,891 90,814 59,922

Non-current assets 76,355,670 118,976,481 42,620,811Tangible assets 75,474,327 117,950,040 42,475,712

Properties in trust etc. 75,474,327 117,950,040 42,475,712Intangible assets 265,279 265,279 －

Other intangible assets 4,910 4,299 ▲ 610Investments and other assets 611,153 756,862 145,709

Deferred assets 72,591 96,923 24,331Total assets 80,354,946 125,866,170 45,511,224《Liabilities and Net Assets》

Current liabilities 1,673,974 1,109,615 ▲ 564,3581,000,000 － ▲ 1,000,000

Account payables 117,068 298,634 181,566Other account payables 76,431 100,077 23,645Accrued expenses 56,398 85,004 28,605Income taxes payable, etc. 683 681 ▲ 1Advance received 419,426 622,091 202,665Others 3,967 3,126 ▲ 841

Non-current liabilities 43,553,916 66,127,204 22,573,287Investment Corporation Bonds payable － 3,000,000 3,000,000Long term loans payable 42,720,000 61,920,000 19,200,000

833,916 1,207,204 373,287Total liabilities 45,227,891 67,236,820 22,008,929

Unitholders' equity 35,108,382 58,619,414 23,511,032Unitholders' capital 33,975,836 56,900,677 22,924,841Surplus 1,132,545 1,718,736 586,190

Valuation and translation adjustments 18,672 9,936 ▲ 8,736Total net assets 35,127,054 58,629,350 23,502,295Total liabilities and net assets 80,354,946 125,866,170 45,511,224

Short term loans payable

Tenant leasehold and security deposits in trust,etc.

25

8th ~ 9th Period Performance Forecast

(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.

(million yen)7th Fiscal Period

(period ending Jan 2014)

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

(Sep'12) Differential

# of operating days 184 days

Income from leasing business 2,673 4,005 4,017 11 4,026 9Income from leasing business 2,581 3,844 3,827 ▲ 16 3,903 76Other income from leasing business 92 161 189 28 122 ▲ 66

Leasing business expenses 963 1,546 1,551 4 1,475 ▲ 75Leasing business expenses 421 731 761 29 667 ▲ 93Taxes and public dues 112 125 125 0 138 13Depreciation 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 ▲ 48Issued 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 propertiesTotal acquisition price 74,563 114,618 116,239 1,621 116,239 0

181 days

8th Fiscal Period(period ending Jul 2014)

9th Fiscal Period(period ending Jan 2015)

184 days

26

CRR Characteristics

A high-class rental residence series produced by TLC Groupenabling tenants to enjoy urban convenience and smartlifestyles

Comfortable---Key concept of the brand

Active urban lifestyle

Smart lifestyle with an emphasis on security

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

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

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

Main investment target are "COMFORIA" series assets and other investments that utilize the value chain of Tokyu

Land Corporation (TLC) Group.

“COMFORIA ” Series“COMFORIA ” Series Value chain of TLC GroupValue chain of TLC Group

3 Concepts of COMFORIA

<<Sponsor>>Comprehensive real estate developerInformation on the sale of propertiesWarehousingHuman resources / Knowhow

Advisory

TOKYU LAND CORPORATION

Real estate rental management, management of long-term-stay hotelsProperty management

agreementsInformation on the sale of

propertiesProspective tenant advisoryMarket information

Tokyu Relocation Co., Ltd.

Management and operation of senior residence and nursing homesMarket information

TOKYU E-LIFE DESIGN Inc.

Management of condominiums and buildingsProperty management

agreementsInformation on the sale of

propertiesProspective tenant advisoryMarket information

TOKYU COMMUNITY CORP.

Comprehensive real estate marketing intermediary and brokerage of land and buildingsInformation on the sale of

propertiesMarket information

Tokyu Livable, Inc.

TLC COMFORIA InvestmentManagement INC.

27

“COMFORIA” Series

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

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 NihonbashiNingyocho (Chuo-ku, Tokyo)

COMFORIA HigashiikebukuroWEST (Toshima-ku, Tokyo)

COMFORIA NishiAzabu(Minato-ku, Tokyo)

COMFORIA BunkyoKasuga(Bunkyo-ku, Tokyo)

COMFORIA Misyuku(Setagaya-ku, Tokyo)

COMFORIA Atago(Minato-ku, Tokyo)

28

26 COMFORIA HARAJYUKU

Location 3 Higashiikebukuro, Toshima-ku,Tokyo

Acquisition Price 3,911,000 (thousand yen)

Land area/GFA 1,117.88 ㎡ / 8,296.57 ㎡

Rentable Units 155 units

Construction/Floors

RC/13F

Completion Date June 2009

60 COMFORIA MITA EAST

“COMFORIA” Series Representative Properties

41 COMFORIA HIGASHI

Location 3 Sendagaya, Shibuya-ku, Tokyo


Land area/GFA 1,476.95 ㎡ / 6,314.63 ㎡


Construction/Floors

RC/B1-7F

Completion Date February 2005

Location 4 Shiba, Minato-ku, Tokyo


Land area/GFA 807.54 ㎡／4,973.31 ㎡


Construction/Floors

RC/B1-13F

Completion Date January 2008

IKEBUKURO WEST

29

Portfolio Policy

Investment TargetInvestment 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.

Maintain over 80% investment ratio of assets in “Central Tokyo”, “Sub-central Tokyo” and “Tokyo Metropolitan areas”, where there is strong potentialdemand for rental residences.

Asset Type Investment Targets Investment (acquisition price base)

Residential propertiesRental residences 80%～100%

Operational rental residences 0%～20%

Category Investment Area Investment ratio(acquisition price base)

Central Tokyo 5 major wards Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku, and Shibuya-ku

80%～100%Sub-central

TokyoDense residential districts

outside of the 5 major wards Other Tokyo wards (excluding above)

Tokyo Metropolitan

area

Dense residential districts in all other Tokyo Metropolitan

areas

All other areas within Tokyo Metropolitan boundaries expecting

strong demand

Other major cities Dense residential districts in ordinance-designated cities 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.

Investment AreaInvestment Area

(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.

Rental residences

Over 80%

Over 80%

Tokyo area

30

# of Net migration and Household in Tokyo 23 Wards

Net-migration of group by ages 15 to under 39 Net-migration of group by ages 15 to under 39

(Source) National Institute of Population and Social Security Research's "Household statistical projection for Japan (by prefecture) Apr. 2014“.

(Note) Refer to References (*4) for more information.

Number of households in Tokyo by type

Number of households in Tokyo by type

Estimated number of households in TokyoEstimated number of households in Tokyo

(Source) National Institute of Population and Social Security Research's "Household statistical projection for Japan (by prefecture) Apr. 2014“.

(Note) Refer to References (*4) for more information.

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.

Housing marketand demographic

trends

① Net migration of younger generation to Tokyo 23 Wards have been increasing and number of households are expected to increase in the Tokyo metropolitan area and Tokyo.

② Due to demographic changes associated with declining birth rate and late marriages, the number of singles and small families are expected to continue increasing.

(Source) Statistics Bureau, Ministry of Internal Affairs and Communications, "Report on Internal Migration in Japan"

15,562

16,178 16,462 16,482

16,266

6,382 6,663 6,789 6,814 6,752

4,000

6,000

8,000

10,000

10,000

12,000

14,000

16,000

2010 2015 2020 2025 2030

Tokyo Metropolitan Area Tokyo

0

1 000

2 000

3 000

4 000

5 000

6 000

7 000

2010 2015 2020 2025 2030Single Married coupleMarried couple with children Single parent with childrenOthers

0

20,000

40,000

60,000

80,000

Tokyo 23Wards

Nagoya-shi Osaka-shi Fukuoka-shi

2010 2011 2012 2013

31

Demand & Price Stability of Tokyo 23 Ward Assets

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

① Since rental housing starts in the Tokyo 23 Wards have remained stable, our current assets are relatively unaffected by new supply.

② Asset prices of rental housing in the Tokyo 23 Wards are more stable than those in other major cities.

Performancestability of AUM

Low price volatility of Tokyo property compared to other

major cities

50% decline for the last five years compared

to peak year

(Note) Figures of the above index are based on the assumption that the quotient from dividing rent rates by 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.

0

10,000

20,000

30,000

40,000

50,000

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

(Source) Ministry of Land, Infrastructure, Transportation and Tourism, Policy Bureau, Construction Statistics Office “Housing Starts"

0.90

1.00

1.10

1.20

1.30

1.40

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

32

Portfolio Map (as at 8th FP end)

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 EAST

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

CRR manages assets with superb accessibility located mainly in the Tokyo 23 WardsCentral Tokyo 32 properties

1 COMFORIA NIHONBASHI NINGYOCHO 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

Total 80 properties

Other major cities 3 properties

54 COMFORIA SHIN-OSAKA

78 COMFORIA SHINSAKAE

79 COMFORIA KITAHORIE

33

Portfolio List (1)

No. Property name Location Transportation Neareststation (walk)

Completiondate

Residentialunits

Commercialunits

Rentableunits Structure/Floors Gross floor

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㎡

24 COMFORIA DAIKANYAMA Shibuya-ku, Tokyo Ebisu Station on Tokyo Metro Hibiya Line 2 min Jan. 2005 40 1 store 41 (Terrace)RC/B1-5F(Tower)S・SRC/B1-14F

(Terrace) 634.79㎡ (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㎡

34

Portfolio List (2)


Completiondate

Residentialunits

Commercialunits


area

Portfolio properties at 8th FP end (continued)

31 COMFORIA SHIBAURA BOWHOUSE Minato-ku, Tokyo Shibaura-futo Station on New Transit YurikamomeTamachi Station on JR Yamanote Line

6 min11 min

Mar. 2006 75 - 75 RC/15F 4,862.18㎡

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㎡

42 COMFORIA YOKOHAMAKANNAI Naka-ku, Yokohamashi, Kanagawa

Kannai Station on JR Keihin-Tohoku Line 5 min Jul. 2009 60 - 60 RC/10F 2,377.62㎡

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 NIHONBASHI NINGYOCHO EAST 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㎡

54 COMFORIA SHIN-OSAKA Higashi Yodogawa-ku, Osaka-shi, Osaka

Shin-osaka station on JR Tokaido & Sanyo Shinkansen,Tokaido Line / Osaka-shi Shiei Midosuji Line

3 min8 min

Oct. 2006 132 1 store 133 RC/15F 6,530.63㎡

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 NIHONBASHININGYOCHO 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㎡

35

Portfolio List (3)


Completiondate

Residentialunits

Commercialunits


area


61 COMFORIA LIV SHIBAURA CANAL Minato-ku, Tokyo Hinode Station on New Transit YurikamomeTamachi Station on the JR Keihin-Tohoku Line

7 min13 min

Dec. 2004 95 - 95 RC/10F 2,703.41㎡

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㎡

77 COMFORIA SHINKOYASU Kanagaw a-ku, Yokohama-shi, Kanagaw a Shinkoyasu Station on the JR Keihin-Tohoku Line 6 min Jan. 2007 36 - 36 RC/10F 2,622.19㎡

78 COMFORIA SHINSAKAE Naka-ku, Nagoya-shi, Aichi Shinsakae-machi Station on the Nagoya Municipal SubwayHigashiyama Line

7 min May. 2009 144 - 144 RC/13F 4,098.97㎡

79 COMFORIA KITAHORIE Nishi-ku, Osaka-shi, Osaka Nishinagahori Station on the Osaka Municipal SubwaySennichimae Line & Nagahori Tsurumiryokuchi Line

2 min Feb. 2007 72 1 store 73 RC/13F 1,910.01㎡

80 COMFORIA NIBANCHO Chiyoda-ku, Tokyo Kojimachi Station on Tokyo Metro Yurakucho Line 1 min Feb. 2006 42 - 42 SRC/15F 2,165.01㎡

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

36

Appraisal Value (1)

Book value Appraisal-bookvalue

At acquisition 7th FP 8th FP

(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.

No. Property nameAcquisition

price (millionyen)

At acquisition

Appraisal companyAppraisal value Appraisal value

8th FP end Appraisal - Acquisition price7th FP end

Appraisal value

37

Appraisal Value (2)





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 NIHONBASHI NINGYOCHO EAST 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 NIHONBASHININGYOCHO 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.



Appraisal valueNo. Property nameAcquisition

price (millionyen)

At acquisition

38

Appraisal Value (3)

Ratio of unrealized gain12.1%(Acquisition price basis)





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

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



Appraisal valueNo. Property nameAcquisition

price (millionyen)

At acquisition

39

Occupancy and Rent Rates

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

Rent: Yen/Tsubo(residential units) 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

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%

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 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


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


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 properties 4 4 4 4 4 4 4 4 4 4 4 4 5 5 5 5 5 5

Rentable units 194 194 194 194 194 194 194 194 194 194 194 194 230 230 230 230 230 230


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 1 1 1 1 1 1 3 3 3 3 3

Rentable units 133 133 133 133 133 133 350 350 350 350 350

Rent: Yen/Tsubo(residential units) 8,018 8,014 8,015 7,998 7,999 8,009 8,530 8,549 8,520 8,514 8,521

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

Items

Invested area Items

Total portfolio

Other MajorCities

TokyoMetropolitanarea

Sub-CentralTokyo

Central Tokyo

Invested area8th FP

8th FP

7th FP

7th FP

6th FP

6th FP

40

57.7%

40.7%

1.6%

Under 5 mins 5 to 10 mins Over 10 mins

Minutes to nearest train station (on

foot)

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

7th FP

Investment area Nearest train station (on foot)

Average building age Residential units per property

7th FP Avg. distance: 5.2 min Avg. distance: 4.9 min

7th FP Avg. age: 7.5 years

Tokyo 23 Wards: 93.3% Tokyo 23 Wards: 92.5%

Avg. age: 7.8 years 7th FP Avg. units/property: 60.0 Avg. units/property: 62.3

8th FP 8th FP

8th FP 8th FP

(Note1) Graph data based on acquisition price. (Note2) Refer to “References (*2) for calculation method of “Investment area”.

(Note3) Graph data based on acquisition price.(Note4) Refer to “References (*2) for calculation method of “Minutes to nearest train

station (on foot)” and “Avg. distance”.

(Note5) Graph data based on build year of each asset under management (acquisition price basis) at the end of each fiscal period.

(Note6) Refer to “References (*2) for calculation method of “Average building age”.(Note7) Graph data represents ratio of residential units (excluding retail and office space)

at each asset under management in the portfolio.

58.6%

40.4%

1.0%

Minutes to nearest train station (on

foot)

9.3%

80.0%

10.7%

Average building age

13.8%

33.8%37.5%

15.0%

Residential units per property

24.9%

64.1%

11.0%

Under 5 years 5 to 10 years Over 10 years

Average building age

18.2%

34.5%

32.7%

14.5%

Under 30 units Over 30 less than 50 unitsOver 50 less than 100 units Over 100 units

Residential units per property

44.8%

47.7%

3.2%

4.4%

Investment area

37.2%

56.1%

3.5% 3.2%

Central Tokyo Sub-central TokyoTokyo Metropolitan area Other Major Cities

Investmentarea

41

Acquisition price per unit

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

(Note2) Graph data represents ratio of floor area (excluding retail and office space) to total rentable space.

*Room types

Area per unit (㎡)

Unit type

7th FP Price per unit: ¥1.35Bn Price per unit: ¥1.45Bn

7th FP

7th FP Area per unit: 34.9㎡ Area per unit: 34.3㎡

Single/Compact: 82.1% Single/Compact: 84.9%

8th FP

8th FP

8th FP

STUDIO: 1K, one room1BED: 1DK,1LDK,1LDK+service room and/or closet space, etc.2BED: 2DK,2LDK,2LDK+service room and/or closet space, etc.3BED: 3DK,3LDK,3LDK+service room and/or closet space, etc.4BED: 4DK,4LDK,4LDK+service room and/or closet space, etc.

Under30㎡

30㎡~40㎡

40㎡~50㎡

50㎡~60㎡

60㎡~70㎡

70㎡~80㎡ Over 80㎡

STUDIO S S C C F F F

1BED S C C C F F F

2BED C C C L L L

3BED L L L L L

4BED L L L

(Note3) Graph data represents ratio of rentable space by room type.(Note4) Refer to the right chart with regards to room type.

(Note1) Graph data based on acquisition price. Rounded to the nearest tenths.

18.4%

19.5%

28.4%

33.7%

Acquisition price per unit 51.9%

21.6%

13.7%

6.2%6.6%

Area per unit (㎡)

44.4%

40.5%

1.8%11.4%

1.9%

Room type

51.7%

21.7%

13.0%

5.9%7.8%

Less than 30㎡ Over 30㎡ less than 40㎡ Over 40㎡ less than 50㎡

Over 50㎡ less than 60㎡ Over 60㎡

Area per unit (㎡)

25.1%

19.7%

16.6%

38.6%

Less than 1 Bil JPY Over 1 Bil JPY less than 1.5 Bil JPYOver 1.5 Bil JPY less than 2 Bil JPY Over 2 Bil JPY

Acquisition price per unit

41.7%

40.4%

2.0%

13.6%2.3%

Single（S） Compact（C） Family（F） Large（L） Stores

Room type

42

Type Lender Loan amount(million yen)

Fixed/Variable

Interest(%)

Drawdowndate

Maturitydate Type Lender Loan amount

(million yen)Fixed/

VariableInterest

(%)Drawdown

dateMaturity

dateDevelopment Bank of Japan 3,570 1.34500 Mizuho Bank 1,000Mitsubishi UFJ Trust and Banking 3,570 1.33500 The Bank of Tokyo-Mitsubishi UFJ 1,000Sumitomo Mitsui Trust Bank 1,785 Mitsubishi UFJ Trust and Banking 1,000Tokyo Tomin Bank 1,000 Sumitomo Mitsui Trust Bank 1,000Mizuho Bank 3,570 Development Bank of Japan 1,000The Bank of Tokyo-Mitsubishi UFJ 3,570 Sumitomo Mitsui Banking Corporation 500Sumitomo Mitsui Trust Bank 3,570 Mizuho Bank 670Sumitomo Mitsui Banking Corporation 1,785 The Bank of Tokyo-Mitsubishi UFJ 670Development Bank of Japan 1,090 Mitsubishi UFJ Trust and Banking 670Mizuho Bank 1,090 Sumitomo Mitsui Trust Bank 670Sumitomo Mitsui Trust Bank 1,090 Development Bank of Japan 670The Bank of Tokyo-Mitsubishi UFJ 1,090 Sumitomo Mitsui Banking Corporation 350Mitsubishi UFJ Trust and Banking 1,090 Mizuho Bank 910Sumitomo Mitsui Banking Corporation 550 The Bank of Tokyo-Mitsubishi UFJ 910Tokyo Tomin Bank 300 Mitsubishi UFJ Trust and Banking 910

Sumitomo Mitsui Trust Bank 910Development Bank of Japan 910

Mizuho Bank 1,350 Sumitomo Mitsui Banking Corporation 450The Bank of Tokyo-Mitsubishi UFJ 1,350 Total of Loans 61,920Mitsubishi UFJ Trust and Banking 1,350Sumitomo Mitsui Banking Corporation 600

Mizuho Trust & Banking 2,000The Norinchukin Bank 1,500 Total of Bonds 3,000The Bank of Fukuoka 1,000The 77 Bank 500 Total of Interest Bearing Debt 64,920The Daishi Bank 500Mizuho Bank 1,000The Bank of Tokyo-Mitsubishi UFJ 1,000Mitsubishi UFJ Trust and Banking 1,000Sumitomo Mitsui Trust Bank 1,000Development Bank of Japan 1,000Sumitomo Mitsui Banking Corporation 500

Long term loans

Development Bank of Japan 1,350 Fixed 0.90487

Fixed(*)

Mitsubishi UFJ Trust and Banking 2,000 Fixed 0.79500

0.37990

Fixed(*)

Fixed(*)

Fixed(*) 0.60700

0.67075

Fixed(*) 0.90100 30-Jun-14

4-Feb-14 31-Jan-19

4-Sep-13 31-Aug-18

30-Sep-13 30-Mar-18

Long term loans

Fixed 0.64000 30-Jul-14

4-Feb-1423-Mar-11 23-Mar-16

30-Jun-22

30-Sep-13Issue date Redemption

dateInvestment

Corporation Bonds

Type Bond Name Bond amount(million yen)

Fixed/Variable

Interest(%)

4-Feb-14 31-Jan-17

3,000 30-Jul-2130-Sep-19

The Investment Corporation1st unsecured bond

31-Jan-21

Fixed(*) 0.60150 30-Jun-14 30-Jun-20

Fixed(*) 0.88240

29-Sep-17

Fixed(*) 23-Mar-1923-Mar-11

1.03715

1.03715

Fixed(*)

1.41200 3-Feb-12

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

Loan statusLoan status

Credit ratingCredit rating

Rating agency Type Grade Outlook

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

*Note: Interest rate shown above is fixed interest rate as per interest swap agreements.

43

Financial institutions71 entities

1.3%

Financial Instruments Business Operators19 entities

0.3%Other domestic entities

155 entities2.7%

Individuals / others5,349 entities

94.3%

Foreign entities78 entities

1.4%

Unitholders (as at 8th FP end)

Unitholder by issues heldUnitholder by issues held Major unitholders (Top 10)Major unitholders (Top 10)

Unitholder by ratioUnitholder by ratio

(Note1) Figures shown above are rounded down to the nearest hundredths.

(Note2) All data based on the unitholder registry as at Jul. 31, 2014.

Financial institutions61,225 units

60.8%Financial Instruments Business Operators488 units

0.5%

Other domestic entities16,527 units

16.4%

Individuals / others16,286 units

16.2%

Foreign entities6,136 units

6.1%

Unitholders Units held Holding ratio

1 Japan Trustee Services Bank, Ltd. (trust account) 30,142 29.94

2 Tokyu Land Corporation 10,086 10.01

3 Master Trust Bank of Japan, Ltd. (trust account) 6,952 6.90

4 The Nomura Trust & Banking Co., Ltd. (trust account) 4,620 4.58

5 Trust & Custody Services Bank, Ltd. (securities trust investmentaccount) 4,101 4.07

6 Trust & Custody Services Bank, Ltd. (taxable trust moneyaccount) 2,408 2.39

7 Asahi Fire & Marine Insurance 2,400 2.38

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

9 Nippon Tosho Fukyu Co., Ltd. 1,030 1.02

10 The Yamato Shinkin Bank 1,000 0.99

10 Credit Saison 1,000 0.99

Total 65,933 65.49

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Historical Unit Price

Historical unit price and trading (１-Aug-2013 ~ 31-Jul-2014)

Historical unit price and trading (１-Aug-2013 ~ 31-Jul-2014)

Comparable unit price (1-Aug-2013 ~ 31-Jul-2014)

Comparable unit price (1-Aug-2013 ~ 31-Jul-2014)

Unit price : ¥188,500 (+ 18.6%)TSE REIT Index : 1608.10pt (+ 18.5%)TSE REIT Residential Index : 2051.29pt (+ 18.9%)

Record high : ¥192,250Record low : ¥146,0001-day avg. trading : 1095.9 units

(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).

0

800

1,600

2,400

3,200

4,000

4,800

0

25,000

50,000

75,000

100,000

125,000

150,000

175,000

200,000

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

Volume(Right Axis)

Unit Price(JPY) (Unit)

90.0

95.0

100.0

105.0

110.0

115.0

120.0

125.0

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

Unit Price TSE REIT Index TSE Residential REIT Index(Unit)

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■ Date: 23-April-2014 (Wednesday) 10:00~

■ Venue: Shibuya Excel Hotel Tokyu “Planets Room” 6th Floor

■ Shown below are key proposals raised during the meeting.

Yoshihiro Kataoka and Koji Yamamoto were appointed as supervisory directors.

AgendaAgenda

Date & VenueDate & Venue

Nobuhide Kashiwagi was appointed as an substitute executive director.

Hiroyuki Tohmata was appointed as an executive director.

● 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.

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

1. Resolution on amendments of articles of incorporation

2. Resolution on appointment of an executive director

3. Resolution on appointment of an substitute executive director

4. Resolution on appointment of two supervisory directors

Agenda of the 3rd Unitholders’ Meeting

46

Governance

Governance StructureGovernance Structure

Selecting candidates for assets to be acquired / Conducting detailed due diligence / Proposing acquisition plans

Examine compliance issues, considering laws,regulations, the Articles of incorporation, and the bylaws

The committee members are inhouse participants of the Asset Management Company and an outside real-estate appraiser

The resolution shall be adopted unanimously by all committee members

Committee meetings shall be held to discuss transactions with interested parties

The committee members are inhouse participants of the Asset 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

Proposal by the Investment Operation Department

Approval by the Compliance Officer

Deliberation and resolutionby the Investment Committee

Deliberation and resolutionby the Compliance Committee

Deliberation and resolution by the Board of Directors

Report to the Investment Corporation

Aligning interests of unitholders with those of TLCTo 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.

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

47

Overview of CRR

Overview of OrganizationOverview of OrganizationCompany ProfileCompany Profile

Name: Comforia Residential REIT, Inc (CRR)

Fund type: Closed-end

Asset management company:TLC Comforia Investment Management INC.

Address: 1-16-3 Dogenzaka, Shibuya-ku, Tokyo

Officers: Hiroyuki Tohmata, Executive Director(President and CEO of TLC Comforia Investment Management INC.)Yoshihiro Kataoka, Supervising Director (lawyer)Koji Yamamoto, Supervising Director(CPA / tax accountant)

History: June 2010 Registration of incorporation Registration by the prime minister (registration number: Director of Kanto Finance Bureau No. 71)

August 2010 Commenced businessFebruary 2013 Listed on the Real Estate

Investment Trust Securities Market of Tokyo Stock Exchange

Asset Management Company

Sponsor

Asset CustodianGeneral Administration

(operation of the administrative instrument)

Transfer agent

General administration(accounting, etc.)

Asset custodyAdministrative service

Transfer agency

Accounting service

Sponsor support

Asset management

CRR

Investors’ Meeting

Board of Directors

Auditor

Ernst & Young ShinNihon LLC

Mitsubishi UFJ Trsut and Banking

Heiseikaikeisha Tax Corporation

General administration(corporation bond)

Sumitomo Mitsui Trust Bank

Fiscal Issuing and Payment Agency

48

Overview of Asset Management Company

Company ProfileCompany Profile Overview of OrganizationOverview of Organization

Internal AuditCompliance OfficerCompliance Office

Investment Committee

Compliance Committee

Corporate Auditor

Shareholder’s meeting

Investment Operation

Department

Finance & Accounting Department

Strategic Planning

Department

Board of Directors

President & CEO

Name: TLC Comforia Investment Management INC.

Established: October 2009

Capital: 200 million yen

Address: 1-16-3 Dogenzaka, Shibuya-ku, Tokyo

Shareholder: Tokyu Land Corporation100%

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

Business description:Investment management

Registrations/LicensesFinancial Instruments Business Firm, granted by the Director of the Kanto Regional Finance Bureau (Financial Instruments) Registration No. 2370Discretionary Transaction Agent granted by the Minister of Land, Infrastructure, Transport and Tourism, Registration No. 65Building Lots and Building Transactions Business License, granted by the Governor of Tokyo (1) No. 91139

49

References

(*2) Specific investment areas defined as “Investment area” by the Investment Corporation are as follows:

Category Investment Area

Central Tokyo 5 major wards Chiyoda-ku, Chuo-ku, Minato-ku, Shinjuku-ku, and Shibuya-ku

Sub-central Tokyo Dense residential districts outside of the 5 major wards Other Tokyo wards (excluding above)

Tokyo Metropolitan area

Dense residential districts in all other Tokyo Metropolitan areas

All other areas within Tokyo Metropolitan boundaries expecting strong demand

Other major cities Dense residential districts in ordinance-designated cities

(*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

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.

50

References

(*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.

(*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.

51

All content presented in this document is provided solely for informational purposes with regard to CRR and is not intended to serve as an inducement or solicitation to trade in any product offered by CRR.

Information provided in this document contains forward-looking statements such as business forecasts, which should not be construed as CRR’s commitment to or guarantee of future performance.

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.

Duplication or reproduction of any item presented as information herein without the prior consent of CRR or its authorized representative is strictly prohibited.

Disclaimer

Documents

COMFORIA RESIDENTIAL REIT, INC · Investment area Unit type Building age Nearest train station (on foot) 1 On-going influx of “millennials” into the Tokyo 23 Wards 2 Stable rate