contents · consider replacing properties that pose future uncertainties in order to further...

1

Contents

1. Overview of FRI

Overview of FRI ・・・・ 3

Management strategy ・・・・ 4

Portfolio map ・・・・ 5

Portfolio asset categories ・・・・ 6

2. Financial results and forecasts

Summary ・・・・ 9

Steady distribution growth ・・・・ 10

27th period results ・・・・ 11

28th period forecast ・・・・ 12

3. Management highlights

Management highlights—Large-scale shopping centers (regional SCs, outlet malls)

・・・・ 15

Management highlights—Community shopping centers (GMSs)

・・・・ 16

Management highlights—Medium-scale shopping centers (neighborhood SCs, supermarkets)

・・・・ 17

Management highlights—Urban retail facilities

・・・・ 18

Management highlights—Land interests and other properties

・・・・ 19

FRI and the retail market ・・・・ 20

Sound balance sheet ・・・・ 21

Internal growth—financial ・・・・ 22

Sustainability initiatives ・・・・ 23

4. Portfolio overviewPortfolio summary ・・・・ 27

FRI’s portfolio in graphs ・・・・ 29

Rent revision and lease maturity schedules ・・・・ 30

5. Appendix

◆All content in this document is provided solely forinformational purposes and is not intended to serve as aninducement or solicitation to trade in any product offeredby FRI. Investment decisions are made at the investors’discretion and risk. FRI disclaims any responsibility orliability for the consequences of investing in FRI.

◆Investment units issued by FRI are subject to pricefluctuations due to various factors, including: (1) volatilityin the J-REIT market, interest rates and the real estatemarket; (2) fluctuations in rental revenues fromproperties; and (3) the occurrence of unexpected lossesdue to natural disasters. Accordingly, investment in FRIentails the risk of incurring a loss. For more details,please also refer to a section titled “Investment Risk”presented in the Securities Registration Statement(Prospectus) and the Securities Report issued by FRI.

◆ Information provided in this document contains suchforward-looking statements as business forecasts, whichshould not be construed as commitment to or guaranteeof future performance.

◆The information provided in this document was originallypublished in Japanese language form and has beentranslated for reference purposes only. FRI guaranteesneither the completeness nor the accuracy of this Englishtranslation. Please be advised that all informationprovided herein may be subject to change without priornotice.

◆ Duplication or reproduction of any content presentedherein without the prior consent of FRI or its authorizedrepresentative is strictly prohibited.

Asset management company: Mitsui Fudosan Frontier REIT Management Inc.

(Financial Instruments Business Registration No. 395; issued by Director-General of the Kanto Finance Bureau based on the Financial Instruments and Exchange Law)

Disclaimer

１. Overview of FRI

3

Overview of FRI

Corporate profile

Name Frontier Real Estate Investment Corporation ("FRI")

TSE Listing August 9, 2004 Securities code: 8964

Sponsor Mitsui Fudosan Co., Ltd.Changed from Japan Tobacco Inc. as of March 2008

Investment target Retail facilities

Fiscal period ends June 30, December 31

Investment units issued 496,000

Asset management company Mitsui Fudosan Frontier REIT Management Inc.(Wholly owned subsidiary of Mitsui Fudosan Co., Ltd.)

Portfolio

Asset size (based on acquisition prices)

¥293.4 billion; 33 properties

Geographic distribution Urban areas: 52.0%; Other: 48.0%

Occupancy rate 100%

Total leasable floor space1 1,433,781 m2

Financial indicators

LTV*1 42.2%

Interest-bearing debt ratio*2

29.8%

Ratings JCR: AA Stable; R&I: AA- Stable; S&P: A+ Stable

Distributions

27th period (Dec. 2017) ¥10,146 per unit

28th period (June 2018) forecast

¥10,080 per unit

1. Loan-to-value ratio = (Borrowings and bonds + Leasehold and security deposits - Unrestricted cash and deposits ) / (Balance of total assets - Unrestricted cash and deposits); same shall apply to all succeeding occurrences of LTV2. Interest-bearing debt ratio = (Borrowings and bonds - Unrestricted cash and deposits) / (Balance of total assets -Unrestricted cash and deposits); same shall apply to all succeeding occurrences of interest-bearing debt ratio3. Calculated based on the annualized fixed rent (excluding common area maintenance charges) of lease contracts valid as of December 31, 2017. Variable rent is not taken into account. Unrestricted cash and deposits = Cash and cash equivalents at the end of the period - distributions for the period

AEON MALL NAGOYADOME-Mae

Mitsui Outlet Park IRUMA

Mitsui Shopping ParkLaLaport SHIN-MISATO

GINZA GLASSE

Key properties

Area3

Property type3

TokyoMetropolitan Area52.0%

Chubu14.1%

Kansai13.5%

Chugoku11.1%

Kyushu/Okinawa9.2%

Regional SCs39.5%

Outlet malls6.6%

Community SCs11.5%

Neighborhood SCs8.7%

Supermarkets6.4%

Urban retailfacilities

18.1%

Land interests and other properties9.2%

4

Management strategy

Turning fluctuating real estate revenue into steady distribution growth over the long term

External growth

Fully utilize the sponsor’s pipeline to continue acquiring excellent properties Selectively invest in non-sponsor properties utilizing the Asset Management Company’s unique network,

keeping a close eye on risk Carefully select properties for investment considering the certainty of cash flows and growth potential of the

surrounding retail zone Make acquisitions with an eye to maintaining the whole portfolio’s ratio of asset value to yield after

depreciation

Internal growth

Secure a foundation for stable earnings based on long-term fixed rent Adjust to changes in the environments surrounding properties, maintaining and enhancing competitiveness

through such measures as additional investment and tenant replacement Consider replacing properties that pose future uncertainties in order to further enhance portfolio quality

Financial strategy

Maintain sound financial standing through LTV control Execute capital procurement flexibly and strategically based on careful monitoring of the procurement

environment Leveling out repayment periods and amounts to increase financial stability

5

13

12

21

31

30

28

Costco Wholesale Warehouse Iruma (land interest)


Mitsui Shopping Park LaLagarden KASUKABE

Costco Wholesale Warehouse Shin-Misato (land interest) Mitsui Shopping Park LaLaport SHIN-MISATO Mitsui Shopping Park LaLaport SHIN-MISATO Annex

19

1

4

33

22

27

15

16

11

20

7

25

14

26

8

10

29

2

5

24

6

18

Portfolio map

33 properties Asset size: ¥293.4 billion (as of February 15, 2018)

Ito-Yokado Higashi-Yamato AEON TOWN Tanashi-ShibakuboQueen’s Isetan Suginami-Momoi

Shimura Shopping Center

Summit Store TakinogawaMomiji-Bashi

Ikebukuro Square

Desigual Harajuku

GINZA GLASSE

AEON STYLE Shinagawa Seaside

Kamiikedai Tokyu Store

Super Viva Home Zama and Super Sanwa Zama Higashihara(land interest)Summit Store Yokohama Okano (land interest)

Kohnan Kawasaki- Odasakae Mall (land interest)

Don Quijote Fukuoka Tenjin

VIORO

Papillon Plaza

Frespo Tosu(land interest)

KOJIMA x BIC CAMERA Naha Store

17

23

3

9

32

Mitsui Shopping Park ALPARK (East Building) Home Center Kohnan Hiroshima Minami-Machi (land interest)

You Me Town Hiroshima

Shinsaibashi Square

AEON MALL Ibaraki

Belltown TambaguchiEki-Mae Store

QANAT Rakuhoku

AEON MALL NAGOYADOME-Mae Mitsui Shopping Park LaLaport IWATA

Kyushu/ Okinawa area Chugoku area

Kansai area

Chubu area

Tokyo metropolitan area

SaitamaTokyo

Kanagawa

Regional SC : A large-scale shopping center that houses multiple specialty stores

Outlet mall : A large-scale shopping center in which multiple outlet stores are concentrated

Community SC ：A medium-scale shopping center where the main tenant typically stocks general merchandise and groceries (GMS)

Neighborhood SC : A medium- or small-scale shopping center where the main tenant is typically a supermarket

Supermarket : A retail outlet that sells mainly food products

Urban retail facilities : A store that faces onto a main street or a specialty store building in a prime urban location

Land interests and other properties : Land interests in retail facilities, etc.

Large-scale SCs

Community SCs

Medium-scale SCs

Urban retail facilities

Land interests and other properties

Ohmiya

Tachikawa

JR Yamanote-Line

Yokohama

6

Portfolio asset categories

9 propertiesAverage acquisition price: ¥4.6 bn

NOI yield: 5.5%NOI yield after depreciation: 4.1%







Large-scale shopping centers (regional SCs, outlet malls)

Medium-scale shopping centers (neighborhood SCs, supermarkets)



Outlet malls

AEON MALL NAGOYADOME-Mae

You Me Town Hiroshima

AEON MALL Ibaraki Mitsui Shopping ParkLaLaport IWATA

Mitsui Shopping Park ALPARK (East Building)

Mitsui Shopping ParkLaLaport SHIN-MISATO


Kohnan Kawasaki-Odasakae Mall (land interest)

Summit Store YokohamaOkano (land interest)

Costco Wholesale Warehouse Shin-Misato

(land interest)

Frespo Tosu (land interest)

Costco WholesaleWarehouse

Iruma (land interest)

Home Center Kohnan Hiroshima

Minami-Machi (land interest) 4


Don Quijote Fukuoka Tenjin3VIOROIkebukuro Square GINZA GLASSE Shinsaibashi Square Desigual Harajuku

AEON STYLE Shinagawa Seaside 2

Ito-Yokado Higashi-Yamato

Papillon PlazaMitsui Shopping Park LaLagarden KASUKABE

QANAT Rakuhoku Shimura Shopping Center Queen’s IsetanSuginami-Momoi

Summit Store Takinogawa Momiji-Bashi

AEON TOWN Tanashi-Shibakubo

Belltown Tambaguchi Eki-Mae Store

Kamiikedai Tokyu StoreNeighborhood SCs

Community SCs



Community shopping centers(GMS)

1. NOI yield is calculated by dividing the sum of NOI on rent (excluding extraordinary factors) and profit from property leasing by acquisition prices. Figures used in this calculation are as of December 31, 2017.2. Renamed from AEON Shinagawa Seaside Shopping Center as of October 13, 2017.3. Previously, (provisional name) Don Quijote Tenjin; officially renamed to the current property name as of November 17, 2017 following the tenant change executed on August 24, 2017.4. Previously, (provisional name) Home Center Kohnan Hiroshima-Shi Minami-Machi (land interest); officially renamed to the current property name as of October 25, 2017.

Super Viva Home Zama andSuper Sanwa Zama

Higashihara (land interest)

Supermarkets



Regional SCs

¥30.3 billion

¥59.5 billion

¥41.4 billion

¥31.7 billion

Total acquisition price: ¥130.3 billion

2. Financial results and forecasts

9

Summary

Conservative financial operations

３

3Initiatives to strengthen the portfolio

２

Steady distribution growth

1 Having accomplished a distribution per unit (DPU) of over ¥10,000 for the second consecutive period—a first for us—we now aim to extend this track record to the third consecutive period DPU

Maintained strong financial standing through conservative operations

LTV 27th period end: 42.2% (including leasehold and security deposits)

Interest-bearing debt ratio 27th period end: 29.8% (excluding leasehold and security deposits)

Reduced debt cost 27th period end: 0.62% (-0.07 pt from the 26th period end)

Acquired a new property from third parties Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest) (July 2017)

Acquisition price: ¥4,320 millionAssumed NOI yield: 3.7%Floor space: 28,926.76 ㎡

New openings after tenant change Home Center Kohnan Hiroshima Minami-Machi (land interest) (October 2017) Don Quijote Fukuoka Tenjin (November 2017)

Renovations undertaken by master lessees AEON STYLE Shinagawa Seaside (October 2017) Ito-Yokado Higashi-Yamato (December 2017)

Home Center Kohnan Hiroshima

Minami-Machi

Don QuijoteFukuoka Tenjin

27th period 28th period¥10,146 ¥10,080(forecast)

26th period ¥10,022(up ¥124 from the 26th period; ¥66 above forecast)

10

8,648

8,846.5

8,922.5

8,980

9,205.5

9,274

9,368.5

9,294

9,097.5

9,239

9,299.5

9,991

9,191

9,173.5

9,405

10,211

9,707

9,360

9,695 9,6949,903

10,022 10,08010,146

8,000

8,500

9,000

9,500

10,000

1,9852,5112,610

3,0673,4703,5873,667

4,303

5,6586,1686,2336,364

7,4077,8018,023

8,4729,026

9,6769,96010,63310,390

9,85310,03710,051

10,02210,011

10,13510,111

1,0531,2411,3341,5931,9091,9531,9702,245

2,9502,9672,9972,9743,5323,5843,6083,876

4,2734,5504,6645,307

5,0074,6424,808

4,4674,911 4,970

5,0325,004

0

500

1,000

1,500

2,000

2,500

3,000

3,500

0

2,000

4,000

6,000

8,000

10,000

第1期

04/12月

第2期

05/6月

第3期

05/12月

第4期

06/6月

第5期

06/12月

第6期

07/6月

第7期

07/12月

第8期

08/6月

第9期

08/12月

第10期

09/6月

第11期

09/12月

第12期

10/6月

第13期

10/12月

第14期

11/6月

第15期

11/12月

第16期

12/6月

第17期

12/12月

第18期

13/6月

第19期

13/12月

第20期

14/6月

第21期

14/12月

第22期

15/6月

第23期

15/12月

第24期

16/6月

第25期

16/12月

第26期

17/6月

第27期

17/12月

第28期予想

18/6月

7,218.5

6,0455,622

4,771.5

営業収益（左軸）当期純利益（左軸）資産規模（右軸）

July 20081st public offering

March 2008Third-party allotment

July 20102nd public offering

July 20123rd public offering

March 20134th public offering

(billion yen)

Operating revenue (left axis)

Net income (left axis)

Asset size (right axis)

Steady distribution growth

Distribution per unit

DPU*(Forecast)(yen)

Operating revenue, net income and asset size(million yen) 350

300

250

200

150

100

50

0

* FRI implemented a two-for-one split of its investment units effective January 1, 2014. Distributions before the split have been divided by two.** Distribution per unit (DPU), operating revenue and net income forecasts for the 28th period are given as the figures announced in “Summary of Financial Results for the 27th Fiscal Period,”

published February 15, 2018.

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28thDec.‘04 Jun.’05 Dec.‘05 Jun.’06 Dec.’06 Jun.’07 Dec.’07 Jun.’08 Dec.‘08 Jun.’09 Dec.’09 Jun.’10 Dec.’10 Jun.’11 Dec.’11 Jun.’12 Dec.’12 Jun.‘13 Dec.’13 Jun. ’14 Dec.‘14 Jun.‘15 Dec.’15 Jun.’16 Dec.‘16 Jun.’17Dec. ’17 Jun.’18

(based on acquisition prices)

11

27th period results

26th period(January 1, 2017 to

June 30, 2017)

27th period(July 1, 2017 to

December 31, 2017)Change

Operating revenue 10,011 10,135 ＋124 ＋1.2％

Expenses related to rent business(excluding depreciation)

1,974 2,090 +116

NOI 8,037 8,044 ＋7

Depreciation 2,117 2,072 -44

Property leasing operating income

5,920 5,971 ＋51

Selling, general and administrative expenses*

619 640 +20

Operating income 5,300 5,331 ＋31 ＋0.6％

Non-operating income 6 1 -5

Non-operating expenses 334 299 -35

Ordinary income 4,971 5,033 +61 ＋1.2％

Net income 4,970 5,032 +61 +1.2％

Distribution per unit (yen) 10,022 10,146 +124 +1.2％

Investment units issued and outstanding (units) 496,000 496,000 —

LTV at period-end 41.6％ 42.2％ -0.6 pt

Interest-bearing debt ratio 28.8％ 29.8％ -1.1 pt

Number of properties 32 33 ＋1

(million yen) (million yen)

Note 1

Note 2

Note 2

Note 2

Major factors in changes

Note 1. Operating revenueOperation of 27th period acquisition (Super Viva Home Zama and Super Sanwa Zama Higashihara(land interest)) and full-period operation of Home Center Kohnan Hiroshima Minami-Machi (land interest)

+148

Income from utility expenses +25Decrease in rent due to tenant change at TSUTAYA BOOK STORE TENJIN

－18

Decrease due to contract termination at VIORO during the 27th period

－39

Note 2. Operating expensesUtility expenses +22Repairs and maintenance +98Depreciation －44Selling, general and administrative expenses +20

*Selling, general and administrative expenses = Asset custody fee + Administrative service fees + Directors’ compensations + Other operating expenses

12

28th period forecast

27th period results(July 1, 2017 to

December 31, 2017)

28th period forecast*

(January 1, 2018 toJune 30, 2018)

Change

Operating revenue 10,135 10,111 -23 -0.2％

Operating income 5,331 5,288 -42 -0.8％

Ordinary income 5,033 5,005 -27 -0.5％

Net income 5,032 5,004 -27 -0.6％

Distribution per unit (yen) 10,146 10,080 -66 -0.7%

(単位：百万円)

27th period results 28th period forecast*

Investment units issued and outstanding (units) 496,000 496,000

LTV at period-end 42.2% Approx. 42%Number of properties 33 33

(million yen) (million yen)Property tax, city planning tax, etc. 1,042 1,055

Repairs and maintenance 317 334

Depreciation 2,072 2,068

Non-operating expenses 299 284

Capital expenditures 171 158

*Forward-looking figures given here are as announced in “Summary of Financial Results for the 27th Fiscal Period,” published February 15, 2018.

Note 1

Note 2

Major factors in changes

Note 1. Operating revenueFull-period operation of 27th period acquisition (Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest)) and tenant change

－3

Sales-linked rent +10Income from utility expenses －25

Note 2. Operating income(excluding difference in operating revenue)

Outsourcing expenses －21Utility expenses +23Property tax, city planning tax, etc. －13Repairs and maintenance －16Depreciation +4Selling, general and administrative expenses －4

(million yen) (million yen)

Preconditions for operating results forecasts

3. Management highlights

15

Over 7:27.7%

Under 7:72.3%

Excellent locations near train stations

Over 70%adjacent to

a station

Minutes on foot to nearest train station1

Percentage of total annual rent

46.1%

Portion under master leases

100%

Stable revenue base

Features of FRI’s large-scale shopping centers

1. Calculated based on the annualized fixed rent (excluding common area maintenance charges) of lease contracts valid as of December 31, 2017. Variable rent is not taken into account.

Among the largest outlet malls in the Tokyo metropolitan area, attracting customers from a broad area, with synergies with the neighboring Costco Wholesale Warehouse Iruma

Generates sales-linked rent every period

Mitsui Outlet Park IRUMA (outlet mall)

Management highlights—Large-scale shopping centers (regional SCs, outlet malls)

Mitsui Shopping ParkLaLaport IWATA


Introduced sales-linked rent after large-scale renovations in 2015. →Continued to generate sales-linked rent in the 27th period

Ritsumeikan University Osaka-Ibaraki Campus open since spring 2015→Major increase in daytime population

JR line underpass to fully open in March 2018 (partially opened to pedestrians since November 2017)→Will expand the retail zone on the east side of JR line

Repairs of exterior walls planned (kickoff scheduled in the 28th period)

AEON MALL Ibaraki (regional SC)

Part of underpass already opened to pedestrians

AEON MALL Ibaraki

Underpass7 min. on footfrom Ibaraki

Sta.

所沢

東京新宿

渋谷

品川

立川国分寺

八王子

Tokoro-zawaI.C.

Kawa-goeI.C.

Kokubunji

Tachikawa Tokyo Shinjuku

Shibuya

Shinagawa

Tokyo

IrumaI.C.

OumeI.C.

HachiohjiI.C.Hachiohi

JCT.

OhizumiJCT.

BijogiJCT.

KawaguchiJCT.

Hachiohji

SaitamaSaitama

Tokoro-zawa

Kan-etsu Expressway

Ken-O Expressway

HchiohjiBypass

TohokuExpressw

ay

Chuo Expressway

Tomei Expressway

Around 500m from the Iruma IC

Grid-square analysis14,000

1,000

100

02050

300500

2,0003,0005,000

White indicates areas for which there is no

valid data

500ｍ

1km3km

Sources: The Regional Economy and Society Analyzing System（RESAS）and Grid Square Statistics of Population Census undertaken by Statistics Japan, the Ministry of Internal Affairs and Communications

16

Ito-Yokado renovated the property’s food and supermarket sections (Dec. 2017)

Higashiyamato City ranked first among Tokyo municipalities in 2015 birthrate survey while securing third place in 2017 National Ranking of Towns Comfortable for Working Parents1

With neighboring retail facilities, forms the leading retail area in Higashiyamato City

Nojima store newly opened on the second floor in June 2017

In discussions regarding rent revisions (Nov. 2012 and Nov. 2015)

YAOKO

Ito-YokadoHigashi-Yamato

AEON RETAIL renovated the property and renamed it “AEON STYLE” (Oct. 2017)

Flagship central Tokyo AEON Group retail facility

Capable of capturing office workers’ weekday consumption thanks to its positioning as a key shopping center for Shinagawa Seaside Forest, a multipurpose complex with a number of facilities

Approximately 1,800 condominiums under construction within a 500 m radius

Agreed not to revise rents after periodic discussions in October 2017

Ito-Yokado Higashi-Yamato (community SC)AEON STYLE Shinagawa Seaside (community SC)

27th period renovation 27th period renovation

AEON STYLE

Shinagawa

Condominiums (now on sale)

Radius Population* 2011–2016 growth

1 km 40,000 +8.6%

3 km 272,000 +9.1%

5 km 806,000 +9.9%

Furthergrowth expected

Radius Population2 2011–2016 growth

1 km 32,000 +7.5%

3 km 222,000 +2.8%

5 km 558,000 +1.4%

*Calculated using Basic Resident Register data as of April 1, 2016

1. Based on municipality surveys undertaken by Nikkei DUAL and Nihon Keizai Shimbun2. Calculated using Basic Resident Register data as of April 1, 2016

Management highlights—Community shopping centers (GMSs)

17

Opened in 1993 to take advantage of a favorable location boasting direct access to main roads

Contract to reach maturity in April 2019

Now looking into future internal growth opportunities

Papillon Plaza (neighborhood SC)

In August 2016, the master lessee (H2O Asset Management) acquired an adjacent lot

In discussions regarding rent revisions (January 2015 and January 2018)

Now looking into future internal growth opportunities

QANAT Rakuhoku (neighborhood SC)

Yoshizuka Sta.

Hakata Sta.

3 min. toHakata station

Management highlights—Medium-scale shopping centers (neighborhood SCs, supermarkets)

Radius Population*2011–2016

growth

1 km 33,000 +15.3%

3 km 214,000 +14.7%

5 km 522,000 +11.9%


growth

1 km 36,000 +4.8%

3 km 184,000 +2.7%

5 km 414,000 +2.8%

*Calculated using Basic Resident Register data as of April 1, 2016 *Calculated using Basic Resident Register data as of April 1, 2016

Papillon Plaza(Approx. 44,000m2)

Adjacent lot（Approx. 6,300㎡）

Takano River

QANAT Rakuhoku

(approx. 13,000 m2 )

18

Opened in November 2017

Achieved tenant change from TSUTAYA to Don Quijote with no downtime in August 2017

The lengthening of the Nanakuma subway line (to be completed in 2022) will improve access to Hakata Station

Don Quijote Fukuoka Tenjin

Tenant Don Quijote Co., Ltd.

Contract type

Fixed-term building lease

Contract period Aug. 2017 – Mar. 2038

Leased floor space

4,532.38 ㎡

27th period new opening

Management highlights—Urban retail facilities

GINZA GLASSE roadside land price

0

5,000

10,000

15,000

20,000

25,000

1980 1985 1990 1995 2000 2005 2010 2015

Features of FRI’s urban retail facilities

FRI owns stores with street level access and buildings that house specialty stores in prime urban locations with high liquidityFRI maintains a good balance of acquisitions from the sponsor (sponsor-

developed properties) and from third partiesGrowing inbound marketing demand is positively affecting store sales

Percentage of total annual rent accounted for by urban retail facilities

13.1%

18.1%

Source: National Tax Agency

At 17th period-end

At 27th period-end

(year)

(thousand yen/m2)

VIORO

●Brooks Brothers

Don Quijote

●Sony Store

H&M●

●DIESELMuji●

Apple Store●

●ZARA

Nishitetsu Fukuoka (Tenjin) Sta.

Ikebukuro TenjinHarajukuGinzaAcquired from the sponsor Acquired from third parties

Shinsaibashi

19

Acquired using the Asset ManagementCompany’s unique network in July 2017

Easy access via Yamato-Atsugi Bypass (National Route 246)

Offers synergy with neighboring Costco Wholesale Zama Warehouse

Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest) Home Center Kohnan Hiroshima Minami-Machi (land interest)

Opened in October 2017

A profit contributor throughout the 27th period and beyond

Expected to generate synergies withneighboring You Me Town Hiroshima

Location 2 Minami-machi, Minami-ku, Hiroshima City, Hiroshima

Period-end book value ¥1,754 million

Contract periodAug. 2016–Jul. 2037 (fixed-term business-use land lease contract)

Leased floor space 6,055.14 m2

27th period acquisition 27th period new opening

Location 1 Higashihara, Zama City, Kanagawa Acquisition price ¥4,320 millionAcquisition date July 31, 2017

Contract periodJul. 2014–Jul. 2044 (fixed-term business-use land lease contract)

Leased floor space 28,926.76 m2

Management highlights—Land interests and other properties


growth

1 km 25,000 +2.8%

3 km 247,000 +2.1%

5 km 573,000 +2.3%

*Calculated using Basic Resident Registers data as of April 1, 2016

20

（trillion yen）

5.8%4.8%

39.6%

10.8%

17.9%

6.0%

3.1%12.0%

Year-on-year comparison of monthly sales at FRI properties

Source: SC sales statistics report, Japan Council of Shopping Centers＊ Calculated based on sales at properties for which comparisons with the previous year are possible

FRI and the retail market

Source: Consumption Trend Survey for Foreigners Visiting Japan, Japan Tourism Agency

（trillion yen）

BtoC E-commerce market size and e-commerce adoption rate (product sales)

Source: Ministry of Economy, Trade and Industry FY2016 E-Commerce Market Survey

5.99 6.80 7.24 8.00

3.85%4.37%

4.75%5.43%

0%

1%

2%

3%

4%

5%

6%

7%

0

3

6

9

2013 2014 2015 2016

EC市場規模（左目盛） EC化率（右目盛）

Annual retail product sales by region

Annual retail

product sales by region

Distribution of FRI

properties*

＊ Calculated based on the annualized fixed rent (excluding common area maintenance charges) of lease contracts valid as of December 31, 2017. Variable rent is not taken into account.

■Hokkaido ■Tohoku ■Tokyo metropolitan area ■Chubu ■Kansai■Chugoku ■Shikoku ■Kyushu/Okinawa

52.0%

14.1%

13.5%

11.1%

9.2%

Source: Data on 2016 retail sales volumes by regional Bureau of Economy, Trade and Industry, Ministry of Economy, Trade and Industry

Consumption by overseas tourists visiting Japan

E-commerce adoption rate(right axis)

E-commerce market size(left axis)

Government target:

¥8 trillion

-30%

-20%

-10%

0%

10%

20%

30%

2017

/01

2017

/02

2017

/03

2017

/04

2017

/05

2017

/06

2017

/07

2017

/08

2017

/09

2017

/10

2017

/11

2017

/12

SC FRI

1.1 1.4 2.0 3.5 3.7 4.4 0

1

2

3

4

5

6

2012 2013 2014 2015 2016 2017 2020

21

LTV ratio 41.6% 42.2%

Interest-bearing debt ratio 28.8% 29.8%

Long-term debt ratio 84.6% 86.3%

26th(June 30, 2017)

27th(December 31, 2017)

Balance of borrowings and bonds ¥86,400 million ¥85,400 million

Balance of leasehold and security deposits* ¥33,951 million ¥33,105 million

Total balance of liabilities ¥120,351 million ¥118,505 million

Sound balance sheet

Key financial indicators

Unrealized gain based on appraisal value NAV

NAV growth +16.2% over five years

Cash and deposits, etc. ¥ 11.4 billion

Book value of assets under management¥261.3 billion

Net assets¥151.8 billion

Borrowings and bonds¥85.4 billion

Leasehold and security deposits¥33.1 billion

Unrealized gain ¥57.6 billion

¥209.4 billion(NAV)NAV per unit ¥422,315

Other liabilities ¥2.4 billion

¥ 118.5 billion

Total assets: ¥272.7 billion (as of December 31, 2017)

*For an overview of leasehold and security deposits, please see p. 46

¥318.9 billion(Appraisal value)

¥57.6 billion (billion yen)

18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th

250

200

150

100

50

0

(billion yen)

70

60

50

40

30

20

10

0

Unrealized gain based on appraisal value and NAV1s

t2n

d3r

d4t

h5t

h6t

h7t

h8t

h9t

h10

th11

th12

th13

th14

th15

th16

th17

th18

th19

th20

th21

st22

nd23

rd24

th25

th26

th27

th

22

400385 376 381 369 358 339

303 307

27230,000

40,000

50,000

60,000

70,000

80,000

90,000

第18期第19期第20期第21期第22期第23期第24期第25期第26期第27期200

250

300

350

400

450

500借入金等残高（左軸）支払利息額（右軸）

0

50

100

150

第28

期第

29期

第30

期第

31期

第32

期第

33期

第34

期第

35期

第36

期第

37期

第38

期第

39期

第40

期第

41期

第42

期第

43期

第44

期第

45期

第46

期第

47期

第48

期第

49期

第50

期第

51期

第54

期第

55期

(billion yen)

長期借入金保証金

3.58 3.70 3.64 3.703.93 4.04

4.32

4.84 4.83 4.63

1.08% 1.09% 1.07% 1.05%0.98%

0.92%0.84%

0.72% 0.69%0.62%

-0.20%

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

2

3

4

5

6

7

8

第18期第19期第20期第21期第22期第23期第24期第25期第26期第27期

Distribution of maturity dates

（%）

(years)

各期返済分平均利率各期借入分平均利率

0.91

0.51%

1.06

0.36%

1.07

0.27%

1.98

0.43%

1.41

0.35%

1.23

0.21

0.98 1.04 0.78

0.20

0.80

1.40

2.00

3.9 4.5 5.07.0

6.0 5.6 6.1 7.0 6.3

8.8

5.9

9.8 11.68.0

5.2

0

4

8

12

第22期第23期第24期第25期第26期第27期第28期第29期第30期

(as of February 15, 2018）

第27期の長期借入分

Commitment line（million yen）（million yen）

(years) （％）

Impact on DPU:+¥257

投資法人債

Refinancing to reduce debt cost (excluding short-term loans)Average remaining loan/bond period and debt cost (at each period end)

Balance of borrowings and bonds and interest paid

Internal growth—financial

Average period ofrepaymentsin each period

Average periodof new loans/bondsin each period

22nd 23rd 24th 25th 26th 27th 28th 29th 30th

15

10

5

0

Investment corporation bondsLong-termborrowingsLong-term borrowings in 27th Long-term borrowings in 28th

28th

29th

30th

31st

32nd

33rd

34th

35th

36th

37th

38th

39th

40th

41st

42nd

43rd

44th

45th

46th

47th

48th

49th

50th


Average including leasehold and security

deposits:5.83

Average including leasehold and security

deposits:0.47%

■Balance of borrowingsand bonds (left axis) ■Interest paid

(right axis)

Debt cost (right axis)Years remaining (left axis)


55th

Average interest rate of newloans/bonds in each period

Average interest rate of repayments in each period

Security deposits

23

Sustainability initiatives

Acquiring external recognitionsGRESB Real Estate Assessment SMBC Environmental Assessment

Received “Green Star” and “5-Star” ratings under the GRESB program

SMBC Environmental Assessment Financing FrameworkSponsored by Sumitomo Mitsui Banking Corporation (SMBC), this assessmentprogram rates corporations’ efforts to ensure eco-friendly operations based onunique criteria established by The Japan Research Institute, Limited. SMBC alsosets financing conditions, including those for private placement bonds, taking theresults of these assessments into account.

Rated “AA” in recognition of unique initiatives that no other J-REIT has undertaken

Rating (AAA is the highest)

AA: Implementing excellent environmental consideration

Certified properties

DBJ Green Building Certification

GRESB (Global Real Estate Sustainability Benchmark)GRESB is an assessment of the sustainability of real estate companies and operators. Saidassessment is closely watched, as institutional investors use the GRESB benchmark assessment whenthey select investment targets.

■ East Asia / Retail / Listed

2nd (of 6 entities)■Global

156th (of 823 entities)

27th period acquisition 27th period acquisition

VIORO AEON MALL Ibaraki AEON MALL NAGOYADOME-Mae

Mitsui Shopping Park LaLaport IWATA

★★★★★ ★★★★ ★★★★★★★GINZA GLASSE Ikebukuro Square

★★★ ★★★Mitsui Shopping Park

LaLaport SHIN-MISATO

★★★★★Mitsui OutletPark IRUMA

★★★★ ★★★Mitsui Shopping Park

LaLagarden KASUKABE

24

Sustainability initiatives

FacilityResults

Participants Clothing collected

Additional donations

Mitsui Outlet Park IRUMA 97 437 kg ¥2,800

LaLagarden KASUKABE 263 1,307 kg ¥5,287

LaLaport IWATA 234 1,214 kg ¥9,781

LaLaport SHIN-MISATO 295 1,256 kg ¥6,251

ALPARK 534 2,105 kg ¥27,682

&EARTH Clothing Support ProjectTwice a year since 2008, the Mitsui Fudosan Group organizes and executes the project, invitingthe public to donate unneeded clothing at retail facilities. The clothing is then distributed topeople in need through the NPO Japan Relief Clothing Center.

Results of events at FRI properties (Oct.–Nov. 2017)

1,423participants

6,319 ㎏of clothing collected

¥51,801in additional donations

ESG-related initiatives

Participated in 18th &EARTH Clothing Support Project

An event held at Mitsui Shopping Park LaLagarden KASUKABE

Examples of initiatives undertaken by the Asset Management Company

Conducted disaster drills

A disaster drill

Practiced such immediate responses as confirming the status of property damage and safety of employees following a disaster, assuming the occurrence of a major earthquake directly beneath the Tokyo Metropolitan Area.

Reducing environmental burden

＊ Recycling rate ＝Recycled volume／garbage emissions × 100

3R (Reduce, Reuse and Recycle) initiatives

Volume of garbage recycled at five properties (Apr. 2016–Mar. 2017)

Garbage emissions

Recycled volume

Recycling rate*

522t/year

497t/year

95.2％

LaLaport SHIN-MISATO

LaLagarden KASUKABEMitsui Outlet Park IRUMA

GINZA GLASSE LaLaport IWATA

4. Portfolio overview

27

№ Property name Acquisition date Seller1 Acquisition

price Book value Appraisal value

Total leasablefloor space2

Occupan-cy rate2

Age3

(years) PML4

1 AEON STYLE Shinagawa Seaside Aug. 2004 JT 20,100 15,248 19,100 77,547 ㎡ 100% 15.3 14%2 AEON MALL Ibaraki5 Aug. 2004 JT 18,100 14,306 23,800 151,092 ㎡ 100% 17.1 13%

3 Papillon Plaza Aug. 2004 JT 4,810 4,504 5,440 17,095 ㎡ 100% 24.1 1%

4 Kamiikedai Tokyu Store Aug. 2004 JT 1,490 1,240 1,860 6,640 ㎡ 100% 15.8 11%

5 Belltown Tambaguchi Eki-Mae Store Aug. 2005 JT 2,130 1,872 2,870 11,176 ㎡ 100% 12.4 9%6 AEON MALL NAGOYADOME-Mae Mar. 2006 JT 24,800 20,820 25,200 154,766 ㎡ 100% 11.8 13%7 Summit Store Takinogawa Momiji-Bashi Sep. 2006 JT 3,100 2,848 3,700 6,455 ㎡ 100% 11.3 12%

8 Home Center Kohnan Hiroshima Minami-Machi(land interest) 6 Apr. 2007 JT 1,940 1,754 2,540 6,055 ㎡ 100% - -

9 Frespo Tosu (land interest) Nov. 2007 JT 3,178 3,256 3,110 79,447 ㎡ 100% - -10 You Me Town Hiroshima Feb. 2008 JT 23,200 20,000 21,200 122,169 ㎡ 100% 9.9 10%11 Queen’s Isetan Suginami-Momoi Jul. 2008 MF, etc. 3,560 3,366 4,110 5,212 ㎡ 100% 13.1 12%12 Mitsui Outlet Park IRUMA Jul. 2008 MF, etc. 19,900 16,163 22,600 98,714 ㎡ 100% 9.8 14%13 Costco Wholesale Warehouse Iruma (land interest) Jul. 2008 MF, etc. 2,600 2,626 2,750 24,019 ㎡ 100% - -14 Desigual Harajuku7 Oct. 2008 Non-sponsor 3,100 2,902 3,400 1,149 ㎡ 100% 19.2 14%15 Ito-Yokado Higashi-Yamato Jan. 2009 Non-sponsor 11,600 9,837 11,100 53,374 ㎡ 100% 14.1 12%16 AEON TOWN Tanashi-Shibakubo Feb. 2009 MF, etc. 3,100 2,831 3,300 8,785 ㎡ 100% 12.8 11%17 Don Quijote Fukuoka Tenjin Dec. 2009 Non-sponsor 3,700 3,337 4,290 4,532 ㎡ 100% 10.5 2%18 Mitsui Shopping Park LaLaport IWATA Jul. 2010 MF, etc. 15,200 11,533 15,300 136,136 ㎡ 100% 8.6 16%19 GINZA GLASSE Jul. 2010 MF, etc. 13,600 12,901 15,100 5,174 ㎡ 100% 9.8 11%20 Shimura Shopping Center Jan. 2011 Non-sponsor 4,430 4,209 5,800 17,126 ㎡ 100% 17.1 14%21 Mitsui Shopping Park LaLagarden KASUKABE Feb. 2011 MF, etc. 10,000 8,716 11,200 63,415 ㎡ 100% 10.2 13%22 Summit Store Yokohama Okano (land interest) Feb. 2012 Non-sponsor 5,700 5,945 6,800 14,394 ㎡ 100% - -23 VIORO Feb. 2012 Non-sponsor 10,100 9,675 11,900 5,834 ㎡ 100% 11.3 1%24 QANAT Rakuhoku Jul. 2012 MF, etc. 8,800 7,953 8,640 48,303 ㎡ 100% 17.1 9%25 Ikebukuro Square Feb. 2013 MF, etc. 20,400 19,361 24,700 8,863 ㎡ 100% 5.1 14%

（million yen）

Portfolio summary

28

№ Property name Acquisition date Seller1 Acquisition

priceBook value

Appraisal value

Total leasablefloor space＊2

Occupan-cy rate2

Age3

(years) PML4

26 Mitsui Shopping Park ALPARK (East Building) Feb. 2013 MF, etc. 5,400 4,912 5,500 65,603 ㎡ 100% 27.7 12%27 Kohnan Kawasaki-Odasakae Mall (land interest) Jan. 2014 Non-sponsor 7,000 7,069 8,950 23,393 ㎡ 100% - -

28 Mitsui Shopping Park LaLaport SHIN-MISATO Annex Mar. 2014 MF, etc. 3,930 3,717 3,980 6,714 ㎡ 100% 5.7 12%

29 Shinsaibashi Square Mar. 2015 MF, etc. 8,620 8,658 9,500 1,750 ㎡ 100% 3.3 7%

30 Mitsui Shopping Park LaLaport SHIN-MISATO8 Apr. 2015Aug. 2016 MF, etc. 19,840 19,507 20,200 142,315 ㎡ 100% 8.4 11%

31 Costco Wholesale Warehouse Shin-Misato (land interest) Apr. 2015 MF, etc. 3,810 3,854 3,950 30,292 ㎡ 100% - -

32 KOJIMA x BIC CAMERA Naha Store Jan. 2016 Non-sponsor 1,850 1,922 2,450 7,301 ㎡ 100% 11.8 6%

33 Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest) Jul. 2017 Non-sponsor 4,320 4,385 4,560 28,926 ㎡ 100% - -

Total (33 properties, as of December 31, 2017) 293,408 261,243 318,900 1,433,781 ㎡ 100% 11.6 7.65%

（million yen）

1. “MF, etc.” represents Mitsui Fudosan and its consolidated subsidiaries as well as special purpose companies in which Mitsui Fudosan has invested.2. For properties for which pass-through type master lease contracts are concluded, the figures are as at December 31, 2017, calculated on an end tenant basis. 3. With the exclusion of land interests, the determination of property age is calculated using the weighted average method based on acquisition price. 4. PML represents the probable maximum loss in earthquake risk analysis. The values stated for AEON MALL Ibaraki and Mitsui Outlet Park IRUMA are for the store buildings. The figure for Desigual

Harajuku includes the portion of the building that was demolished as of October 29, 2012. The figure for Shinsaibashi Square is for the north tower. The value listed under Total represents the PML value at December 31, 2017 of the entire portfolio (properties from No. 1 to No. 33) as a whole, not the average value of the properties in the portfolio.

5. The acquisition price is as at the time of acquisition and includes the price of a part of land sold to Ibaraki City on October 12, 2010 (Space: 118.86 m2; book value: ¥15 million; sales price: ¥19 million) 6. The acquisition price is as at the time of acquisition and includes the price of the building on the property at the time (¥208 million). Said building was demolished as announced on December 2, 2016.

The value given for book value at end of 27th period is that after the building’s demolition.7. The acquisition price is as at the time of acquisition and includes a portion of the site sold on July 30, 2012 (cost of sales: ¥259 million).8. FRI acquired a 16% co-ownership stake on April 1, 2015, and an additional 50% co-ownership stake on August 10, 2016, but the total leasable floor space presented here is that for the entire property.

The acquisition price presented is the total after the additional acquisition.

Portfolio summary

29

Average contract term: 19.0 years

FRI’s portfolio in graphs

1. All figures are calculated based on the annualized fixed rent (excluding common area maintenance charges) of lease contracts valid as of December 31, 2017. Variable rent is not taken into account. The ratio of fixed rent and sales-linked rent is that of the 27th fiscal period.

2. Based on acquisition price, excluding properties operated as land interests. 3. Excluding tenants under pass-through master lease contracts. 4. Balance of time remaining until the next rent revision date or contract maturity date, whichever is earlier.

Sales-linked rent1.2%

Fixed rent98.8%

Over 10 years23.8%

5 to 10 years37.3%

3 to 5 years16.8%

3 years or less22.1%

Over 10 years53.1%5 to 10 years

22.7%

5 years or less24.2%

Over 10 years87.8%

5 to 10 years8.7%

5 years or less3.4%

AEON Group25.0%

Mitsui Fudosan3

25.3%

Izumi7.7%

Summit4.2%

Round One4.0%

Other33.7%Regional SCs

39.5%

Outlet Malls6.6%

Community SCs11.5%

Neighborhood SCs8.7%

Supermarkets6.4%

Urban retailfacilities

18.1%

Land interests and other properties9.2%

Buildingage2

5 years or less3.3%

5 to 10years43.8%

Over 20 years3.9%

10 to 20years49.1%

Property type Tenants

Contract term

Remainingcontract

term

Period remaininguntil rentrevision4

Ratio of fixed rent and sales-linked rent

Average remaining contract term: 10.9 years

Average building age: 11.6 years

Contract type

Master leasecontracts

68.4%

Pass-throughmaster lease contracts 10.4%

Single-tenantContracts12.1%

Multi-tenant contracts9.1%

30

1. For multi-tenant properties and properties for which pass-through type master lease contracts are concluded, the end tenant that leases the largest leased floor space is shown if they lease over 30% of the total.2. ML: Master lease contract; P: Pass-through type master lease contract (in which the amount of rent that the master lessee pays FRI is the same as the amount of rent that end tenants are contracted to pay the master lessee); S: Contract with a single tenant; M: Contract with multiple tenants;

F: Fixed-term lease; T: Traditional lease3. Figures are calculated based on the annualized fixed rent (excluding common area maintenance charges) of lease contracts valid as of December 31, 2017.4. FRI has a direct lease contract with Royal Home Center and pass-through type master lease contracts with the other end tenants.5. The main tenant and the rent revision and lease maturity schedules are not disclosed as the status of contracts with end tenants varies significantly.

Property name Main tenant1 Contract type2

Sales-linked rent

Percent-age of total

annual rent3

2017 2018 2019 2020 2021Lease

maturity 26th 27th 28th 29th 30th 31st 32nd 33rd 34th 35th

1 AEON STYLE Shinagawa Seaside AEON Retail ML T 7.6% Oct-22

2 AEON MALL Ibaraki AEON Retail ML F ○ 7.8% Apr-35

3 Papillon Plaza Royal Home Center M/P*4 F/T 2.1% Apr-19

4 Kamiikedai Tokyu Store Tokyu Store ML F 0.5% Mar-22

5 Belltown Tambaguchi Eki-Mae Store Matsumoto ML F 0.9% Aug-25

6 AEON MALL NAGOYADOME-Mae AEON Retail ML F 8.0% Mar-26

7 Summit Store Takinogawa Momiji-Bashi Summit S F 1.0% Sep-26

8 Home Center Kohnan Hiroshima Minami-Machi(land interest) Kohnan Shoji S F Undis-

closed Jul-37

9 Frespo Tosu (land interest) Daiwa Lease S F 1.2% Nov-27

10 You Me Town Hiroshima Izumi ML F 7.7% Feb-28

11 Queen’s Isetan Suginami-Momoi Isetan Mitsukoshi Food Service ML F ○ 1.2% Dec-24

12 Mitsui Outlet Park IRUMA Mitsui Fudosan ML F ○ 6.6% Jul-38

13 Costco Wholesale Warehouse Iruma(land interest) Costco S F 0.8% Apr-38

14 Desigual Harajuku INTS S F ○ 0.7% Sep-22

15 Ito-Yokado Higashi-Yamato Ito-Yokado ML T 3.9% Nov-23

16 AEON TOWN Tanashi-Shibakubo AEON Town ML T ○ 1.2% Mar-25

17 Don Quijote Fukuoka Tenjin Don Quijote S F Undis-closed Mar-38

18 Mitsui Shopping Park LaLaport IWATA Mitsui Fudosan ML F ○ 6.2% Jun-30

19 GINZA GLASSE5 — P F/T 3.6% -

20 Shimura Shopping Center Summit ML T 1.6% Nov-20

21 Mitsui Shopping Park LaLagarden KASUKABE Mitsui Fudosan ML T ○ 3.8% Feb-31

22 Summit Store Yokohama Okano (land interest) Summit S F 1.6% Nov-31

23 VIORO5 — P F ○ 4.0% -

24 QANAT Rakuhoku H2O Asset Management ML T ○ 2.8% Nov-20

25 Ikebukuro Square Round One M F 6.6% Dec-32

26 Mitsui Shopping Park ALPARK (East Building) Mitsui Fudosan ML T ○ 2.7% Feb-33

27 Kohnan Kawasaki-Odasakae Mall (land interest) Kohnan Shoji S F 2.1% Jan-36

28 Mitsui Shopping Park LaLaport SHIN-MISATO Annex FOREVER21 P F/T ○ 1.2% Apr-22

29 Shinsaibashi Square Burberry Japan M F Undis-closed Undisclosed

30 Mitsui Shopping Park LaLaport SHIN-MISATO Mitsui Fudosan ML T ○ 6.0% Mar-35

31 Costco Wholesale Warehouse Shin-Misato(land interest) Costco S F Undis-

closed Undisclosed

32 KOJIMA x BIC CAMERA Naha Store Kojima S F Undis-closed May-27

33 Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest)

Sumitomo Mitsui Finance and Leasing S F Undis-

closed Jul-44

Rent revision and lease maturity schedules

Revision

Maturity

Revision Revision

Revision

Revision Maturity

MaturityRevision

New Contract

Recontracting

5. Appendix

33

26th period(January 1, 2017 to

June 30, 2017)

27th period(July 1, 2017 to December

31, 2017)Change Major factors in changes

Amount % of total Amount % of total Amount % changeOperating revenue 10,011 100.0％ 10,135 100.0％ 124 1.2％

Rent revenue–real estate1 9,947 10,110 163Rent revenue–other2 63 24 -38

Operating expenses 4,711 47.1％ 4,804 47.4％ 92 2.0％Expenses related to rent business 4,091 4,163 72

Property management expenses 495 488 -6Property and other taxes 1,043 1,042 -0Casualty insurance 13 13 0Repairs and maintenance 218 317 98Depreciation 2,117 2,072 -44Other expenses3 203 228 25

Selling, general and administrative expenses 619 640 20

Asset management fee 498 504 6Asset custody fee 13 13 0Administrative service fees 21 21 0Directors' compensations 6 6 －Other 79 94 14

Operating income 5,300 52.9％ 5,331 52.6％ 31 0.6％Non-operating income 6 1 -5Non-operating expenses 334 299 -35

Interest expenses 321 285 -36Other 12 13 0

Ordinary income 4,971 49.7％ 5,033 49.7％ 61 1.2％Income before income taxes 4,971 49.7％ 5,033 49.7％ 61 1.2％Income taxes (after net adjustment) 0 0 0Net income 4,970 49.7％ 5,032 49.7％ 61 1.2％Unappropriated retained earnings 4,971 49.7％ 5,032 49.7％ 61 1.2％

Statement of income

(million yen)

1Operation of 27th period acquisition (Super Viva Home Zama and Super Sanwa Zama Higashihara(land interest)) and full-period operation of Home Center Kohnan Hiroshima Minami-Machi (land interest)

+148

Income from utility expenses +25Decrease in rent due to tenant change at TSUTAYA BOOK STORE TENJIN

－18

2Decrease due to contract termination at VIORO during the 27th period

－39

3Utility expenses +22

34

Balance sheet (assets)

26th Period(as of June 30, 2017)

27th Period(as of Dec. 31, 2017) Change Major factors in changes

Amount % of total Amount % of total Amount % change

Current assets 15,998 5.8％ 11,483 4.2％ -4,514 -28.2％

Cash and deposits1 11,800 7,623 -4,177

Cash and deposits in trust1 4,031 3,683 -348

Other 165 176 10Non-current assets(including deferred assets) 258,828 94.2％ 261,308 95.8％ 2,480 1.0％

Property, plant and equipment2 258,770 261,255 2,484

Buildings 37,995 36,987 -1,007

Structures 393 358 -35

Tools, furniture and fixtures 32 30 -1

Land 72,924 72,924 －

Buildings in trust 33,405 32,595 -810

Structures in trust 383 359 -24Machinery and equipment in trust 222 200 -21Tools, furniture and fixtures in trust 41 41 0

Land in trust3 113,359 117,744 4,385Construction in progress in trust 12 12 －

Intangible assets 1 1 0

Investments and other assets4 56 51 -4

Total assets 274,826 100.0％ 272,792 100.0％ -2,034 -0.7％

(million yen)

1.Cash and deposits matching depreciation +2,072Property acquisition during 27th period (Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest))

－4,385

Partial return of security deposits －763Decrease in leasehold deposits due to property acquisition and tenant change during 27th period

－82

Consumption taxes payable －244Loan repayment －1,00027th period capital expenditures －171

2.27th period capital expenditures +171Depreciation －2,072

3.Property acquisition during 27th period (Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest))

+4,385

4.Amortization of insurance payments －3

35

26th Period(as of June 30, 2017)

27th Period(as of Dec. 31, 2017) Change Major factors in changes

Amount % of total Amount % of total Amount % change

Current liabilities 21,208 7.7％ 18,662 6.8％ -2,546 -12.0％

Short-term loans payable1 18,500 16,200 -2,300

Operating accounts payable 870 895 25

Accrued expenses 257 244 -12

Advances received 1,098 1,073 -25

Other2 482 248 -233

Non-current liabilities 101,867 37.1％ 102,317 37.5％ 450 0.4％

Long-term loans payable3 64,900 66,200 1,300

Investment corporation bonds 3,000 3,000 －Tenant leasehold and security deposits4 17,672 17,491 -180Tenant leasehold and security deposits in trust4 16,278 15,613 -665

Other 15 12 2

Total liabilities 123,075 44.8％ 120,980 44.3％ -2,095 -1.7％

Unitholders’ capital 146,590 53.3％ 146,590 53.7％－

Total surplus 5,159 1.9％ 5,221 1.9％ 61

Reserve for reduction entry 188 188 －Unappropriated retained earnings 4,971 5,032 61

Total net assets5 151,750 55.2％ 151,811 55.7％ 61 0.0％

Total liabilities and net assets 274,826 100.0％ 272,792 100.0％ -2,034 -0.7％

Balance sheet (liabilities and net assets)

(million yen)

1.Loan repayment －1,000Extension of short-term loans －3,500Current portion of long-term loans payable +2,200

2.Consumption taxes payable －244

3.Extension of short-term loans +3,500Current portion of long-term loans payable －2,200

4.Partial return of security deposits －763Decrease in leasehold deposits due to propertyacquisition and tenant change during 27thperiod

－82

5.Net assets per unit (yen):

At the end of 26th period 305,948At the end of 27th period 306,072

36

Item26th period

(January 1, 2017 toJune 30, 2017)

27th period(July 1, 2017 to

December 31, 2017)Cash flows from operating activities

Income before income taxes 4,971 5,033

Depreciation and amortization 2,117 2,072

Other 980 -317

Net cash provided by (used in) operating activities 8,069 6,788

Cash flows from investing activities

Purchase of property, plant and equipment -39 -8

Purchase of property, plant and equipment in trust -103 -4,497

Repayments of tenant leasehold and security deposits -278 -255

Proceeds from tenant leasehold and security deposits 1 82

Repayments of tenant leasehold and security deposits in trust -43 -728

Proceeds from tenant leasehold and security deposits in trust 239 63

Payments of restricted bank deposits in trust -216 -50

Proceeds from reversal of restricted bank deposits in trust 14 216

Net cash provided by (used in) investment activities -424 -5,179

Cash flows from financing activities

Proceeds from short-term loans payable 25,000 31,500

Repayment of short-term loans payable -27,000 -30,000

Proceeds from long-term loans payable 5,000 3,500

Repayment of long-term loans payable -3,000 -6,000

Redemption of investment corporation bonds -0 －

Payments for investment corporation bond issuance costs -4,911 -4,968

Net cash provided by (used in) financing activities -4,911 -5,968

Net increase (decrease) in cash and cash equivalents 2,732 -4,359

Cash and cash equivalents at beginning of period 12,462 15,194

Cash and cash equivalents at end of period 15,194 10,834

(million yen)

Statement of cash flows

37

6.2% 6.3% 6.2% 6.3% 6.2%

5.6% 5.7% 5.6% 5.6% 5.5%

5.3% 5.2% 5.2% 5.2% 5.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

第23期

（15/12月）

第24期

（16/6月）

第25期

（16/12月）

第26期

（17/6月）

第27期

（17/12月）

帳簿価額ベース取得価格ベース鑑定価額ベース

4.5% 4.6% 4.5% 4.6% 4.6%

4.1% 4.2% 4.1% 4.1% 4.1%

3.8% 3.8% 3.8% 3.8% 3.7%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

第23期

（15/12月）

第24期

（16/6月）

第25期

（16/12月）

第26期

（17/6月）

第27期

（17/12月）

帳簿価額ベース取得価格ベース鑑定価額ベース

41.2% 39.1%42.3% 41.6% 42.2%

27.2% 25.5%29.6% 28.8% 29.8%

0%

10%

20%

30%

40%

50%

第23期

（15/12月）

第24期

（16/6月）

第25期

（16/12月）

第26期

（17/6月）

第27期

（17/12月）

LTV有利子負債比率

393,714 404,873 409,596 415,987 422,315

306,307 305,620 305,829 305,948 306,072

200,000

250,000

300,000

350,000

400,000

450,000

第23期

（15/12月）

第24期

（16/6月）

第25期

（16/12月）

第26期

（17/6月）

第27期

（17/12月）

一口当たりNAV一口当たりBPS

(yen)

NOI yield* Yield after depreciation*

LTV / Interest-bearing debt ratio NAV per unit / BPS per unit

Key indicators

23rd(Dec. ’15)

24th(June ‘16)

25th(Dec. ’16)

26th(June. ’17)

27th(Dec. ’17)

23rd(Dec. ’15)

24th(June ‘16)

25th(Dec. ’16)

26th(June. ’17)

27th(Dec. ’17)

23rd(Dec. ’15)

24th(June ‘16)

25th(Dec. ’16)

26th(June. ’17)

27th(Dec. ’17)

23rd(Dec. ’15)

24th(June ‘16)

25th(Dec. ’16)

26th(June. ’17)

27th(Dec. ’17)

Book value basis

Appraisal value basis

Acquisition price basis

Book value basis

Appraisal value basis

Acquisition price basis

NAV per unitBPS per unit

LTVInterest-bearing debt ratio

* The above figures are calculated excluding extraordinary factors.

38

1. NOI = Property leasing operating income + Depreciation (same shall apply to all succeeding occurrences of NOI)2. Only NOI is disclosed, as FRI has not obtained the permission of the lessee to disclose other information.

Real estate rent revenue Expenses related to rent business Property leasing

operating income

NOI1NOI yield

TotalRent

revenue –real estate

Rent revenue –

otherTotal

Property and other

taxes

Property management

expenses

Casualty insurance

Repairs and maintenance Depreciation Other

expenses(to acquisition

price)2 (to book value)

AEON STYLE Shinagawa Seaside

26th 742 737 4 359 87 46 1 4 214 4 383 598 6.0% 7.7%27th 742 737 4 405 87 38 1 57 214 4 336 551 5.5% 7.2%

AEON MALL Ibaraki26th 774 768 5 296 96 16 0 17 162 1 478 640 7.1% 8.9%27th 776 771 5 267 96 16 0 5 146 1 509 656 7.2% 9.2%

Papillon Plaza26th 222 222 0 90 32 37 0 0 18 1 132 150 6.3％ 6.7％27th 222 222 0 90 32 37 0 1 17 1 132 149 6.2％ 6.6％

Kamiikedai Tokyu Store26th 53 53 - 17 5 1 0 - 10 0 35 46 6.2％ 7.4％27th 53 53 - 17 5 1 0 - 10 0 35 46 6.2％ 7.5％

Belltown TambaguchiEki-Mae Store

26th 84 84 - 21 9 1 0 0 10 - 63 73 6.9％ 7.9％27th 84 84 - 21 9 1 0 - 10 - 63 74 7.0％ 7.9％

AEON MALLNAGOYADOME-Mae

26th 773 773 - 254 91 15 0 0 146 - 519 665 5.4％ 6.3％27th 773 773 - 258 91 15 1 3 146 - 515 661 5.3％ 6.4％

Summit StoreTakinogawa Momiji-Bashi

26th 99 99 - 20 6 1 0 0 12 - 78 90 5.8％ 6.3％27th 99 99 - 20 6 1 0 - 12 - 78 90 5.9％ 6.4％

Home Center KohnanHiroshima Minami-Machi

(land interest)

26th Notdisclosed2 -5 - -

27th Notdisclosed2 66 6.8％ 7.6%

Frespo Tosu (land interest)

26th 118 118 0 16 16 - - - - 0 101 101 6.4％ 6.2％27th 118 118 0 16 16 - - - - 0 101 101 6.4％ 6.2％

You Me Town Hiroshima26th 745 745 0 247 89 14 0 - 142 - 497 640 5.5％ 6.4％27th 745 745 0 247 89 14 0 - 142 - 497 640 5.5％ 6.4％

Queen’s Isetan Suginami-Momoi

26th 112 112 - 23 8 2 0 0 11 0 89 100 5.7％ 6.0％27th 112 112 - 52 8 3 0 29 11 0 59 70 4.0％ 4.2％

Mitsui Outlet Park IRUMA26th 714 714 0 319 47 16 1 42 211 0 395 606 6.1％ 7.4％27th 700 700 0 305 47 15 1 28 211 0 395 607 6.1％ 7.5％

(million yen)

Leasing income and expenses by property

39



operating income

NOINOI yield

TotalRent


Rent revenue –

otherTotal

Property and other

taxes

Property management

expenses

Casualty insurance



price) (to book value)

Costco Wholesale Warehouse Iruma

(land interest)

26th 78 78 0 4 4 - - - - - 73 73 5.7％ 5.6％27th 78 78 0 4 4 - - - - - 73 73 5.7％ 5.6％

Desigual Harajuku26th 66 66 - 12 7 1 0 - 3 0 53 57 3.7％ 3.9％27th 66 66 - 12 7 1 0 - 3 0 53 57 3.7％ 3.9％

Ito-Yokado Higashi-Yamato

26th 380 380 - 168 41 8 0 2 115 0 211 327 5.6％ 6.6％27th 380 380 - 166 41 8 0 1 115 0 213 328 5.7％ 6.7％

AEON TOWNTanashi-Shibakubo

26th 114 114 - 31 11 2 0 - 17 0 83 100 6.5％ 7.1％27th 114 114 - 35 11 3 0 3 17 0 79 97 6.3％ 6.9％

Don Quijote FukuokaTenjin

26th 147 147 - 54 8 4 0 2 32 5 92 125 6.8％ 7.5％

27th Notdisclosed* 91 5.0％ 5.5％


26th 601 601 0 369 71 13 0 18 265 0 231 496 6.5％ 8.4％27th 600 600 0 370 71 13 0 19 265 0 229 495 6.5％ 8.6％

GINZA GLASSE26th 415 415 - 219 42 65 0 8 55 47 196 252 3.7％ 3.9％27th 420 420 - 238 42 67 0 16 56 55 182 238 3.5％ 3.7％

Shimura Shopping Center26th 158 158 0 46 15 3 0 0 27 0 111 138 6.3％ 6.6％27th 158 158 0 46 15 3 0 - 27 0 111 139 6.3％ 6.6％

Mitsui Shopping Park LaLagarden KASUKABE

26th 370 370 - 177 37 8 0 16 114 0 192 307 6.1％ 7.0％27th 370 370 - 207 37 9 0 45 114 0 163 277 5.6％ 6.4％

Summit Store Yokohama Okano

(land interest)

26th 154 147 7 10 10 - - - - - 144 144 5.1％ 4.9％27th 154 147 7 10 10 - - - - - 144 144 5.1％ 4.9％

VIORO26th 540 495 44 315 39 122 0 14 52 86 224 276 5.5％ 5.7％27th 532 526 5 327 39 116 0 20 52 97 204 257 5.1％ 5.3％

QANAT Rakuhoku26th 276 276 - 206 38 8 0 66 93 0 69 163 3.7％ 4.1％27th 276 276 - 157 38 7 0 46 65 0 119 184 4.2％ 4.6％

(million yen)

* Only NOI is disclosed, as FRI has not obtained the permission of the lessee to disclose other information.

40



operating income

NOINOI yield

TotalRent


Rent revenue –

otherTotal

Property and other

taxes

Property management

expenses

Casualty insurance



price)1 (to book value)

Ikebukuro Square26th 690 690 0 261 40 61 0 0 120 38 429 550 5.4％ 5.6％27th 697 697 0 269 39 63 0 0 120 44 427 548 5.4％ 5.7％


26th 264 264 - 152 56 5 2 2 85 - 111 197 7.3％ 7.9％27th 264 264 - 152 56 5 2 1 85 - 111 197 7.3％ 8.0％

Kohnan Kawasaki-Odasakae Mall (land interest)

26th 208 208 0 20 20 0 - - - 0 187 187 5.4％ 5.3％27th 208 208 0 20 20 0 - - - 0 187 187 5.4％ 5.3％

Mitsui Shopping Park LaLaport SHIN-MISATO

Annex

26th 140 140 0 72 7 13 0 2 34 15 67 101 5.2％ 5.4％27th 145 145 0 74 7 14 0 - 34 18 70 104 5.3％ 5.6％

Shinsaibashi Square26th Not

disclosed2 174 4.0％ 4.0％

27th Notdisclosed2 174 4.0％ 4.0％


26th 586 586 - 231 60 12 1 14 142 0 354 496 5.0% 5.1%27th 586 586 - 232 60 12 1 15 142 0 353 496 5.0% 5.1%

Costco Wholesale Warehouse Shin-Misato

(land interest)






Super Viva Home Zama and Super Sanwa Zama

Higashihara (land interest)

26th - - - - - - - - - - - - - -

27th Notdisclosed2 76 - -

Total26th 10,011 9,947 63 4,091 1,043 495 13 218 2,117 203 5,920 8,037 5.6％ 6.3％27th 10,135 10,110 24 4,163 1,042 488 13 317 2,072 228 5,972 8,044 5.5％ 6.2％

(million yen)

1. NOI yield is not shown for the property acquired in the 27th period.2. Only NOI is disclosed, as FRI has not obtained the permission of the lessee to disclose other information.

41

1. CR = Cap rate determined by the direct reduction approach 2. The cap rate for these properties is calculated using the residual land method.3. The values shown are for FRI’s 66% co-ownership stake. 4. Appraisal value at the end of the 26th period is based on appraisal value determined at the time of acquisition.

Area Property name Acquisition date

Acquisition price

Book value at end of

27th period

27th period(December 31, 2017)

26th period(June 30, 2017) Changes

Major factor in increase/

decreaseAppraisal

value CR1 Appraisal value CR1 Appraisal

valueCR1 CR1 Other


AEON STYLE Shinagawa Seaside Aug. 2004 20,100 15,248 19,100 5.7% 19,100 5.7% 0 0.0%Kamiikedai Tokyu Store Aug. 2004 1,490 1,240 1,860 4.7% 1,820 4.8% +40 －0.1% ○Summit Store Takinogawa Momiji-Bashi Sep. 2006 3,100 2,848 3,700 4.9% 3,630 5.0% +70 －0.1% ○Queen’s Isetan Suginami-Momoi Jul. 2008 3,560 3,366 4,110 4.9% 4,110 4.9% 0 0.0%Mitsui Outlet Park IRUMA Jul. 2008 19,900 16,163 22,600 5.4% 22,600 5.4% 0 0.0%Costco Wholesale Warehouse Iruma (land interest) Jul. 2008 2,600 2,626 2,750 5.4% 2,750 5.4% 0 0.0%Desigual Harajuku Oct. 2008 3,100 2,902 3,400 3.2% 3,400 3.2% 0 0.0%Ito-Yokado Higashi-Yamato Jan. 2009 11,600 9,837 11,100 5.5% 11,100 5.5% 0 0.0%AEON TOWN Tanashi-Shibakubo Feb. 2009 3,100 2,831 3,300 5.6% 3,300 5.6% 0 0.0%GINZA GLASSE Jul. 2010 13,600 12,901 15,100 3.0% 15,100 3.0% 0 0.0%Shimura Shopping Center Jan. 2011 4,430 4,209 5,800 4.5% 5,690 4.6% +110 －0.1% ○Mitsui Shopping Park LaLagarden KASUKABE Feb. 2011 10,000 8,716 11,200 5.3% 11,000 5.4% +200 －0.1% ○Summit Store Yokohama Okano (land interest)2 Feb. 2012 5,700 5,945 6,800 4.6% 6,630 4.7% +170 －0.1% ○Ikebukuro Square Feb. 2013 20,400 19,361 24,700 4.3% 24,400 4.4% +300 －0.1% ○Kohnan Kawasaki-Odasakae Mall (land interest)2 Jan. 2014 7,000 7,069 8,950 4.5% 8,710 4.6% +240 －0.1% ○Mitsui Shopping Park LaLaport SHIN-MISATO Annex Mar. 2014 3,930 3,717 3,980 5.2% 3,980 5.2% 0 0.0%Mitsui Shopping Park LaLaport SHIN-MISATO3 Apr. 2015

Aug. 2016 19,840 19,507 20,200 4.8% 20,300 4.8% －100 0.0% ○Costco Wholesale Warehouse Shin-Misato (land interest) Apr. 2015 3,810 3,854 3,950 4.4% 3,950 4.4% 0 0.0%Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest)4 Jul. 2017 4,320 4,385 4,560 - 4,550 - +10 -

Chubu AEON MALL NAGOYADOME-Mae Mar. 2006 24,800 20,820 25,200 5.2% 25,200 5.2% 0 0.0%Mitsui Shopping Park LaLaport IWATA Jul. 2010 15,200 11,533 15,300 6.1% 15,400 6.1% －100 0.0% ○

Kansai AEON MALL Ibaraki Aug. 2004 18,100 14,306 23,800 5.2% 23,800 5.2% 0 0.0%Belltown Tambaguchi Eki-Mae Store Aug. 2005 2,130 1,872 2,870 5.0% 2,820 5.1% +50 －0.1% ○QANAT Rakuhoku Jul. 2012 8,800 7,953 8,640 4.8% 9,010 4.9% －370 －0.1% ○ ○Shinsaibashi Square Mar. 2015 8,620 8,658 9,500 3.5% 9,010 3.7% ＋490 －0.2% ○

Chugoku Home Center Kohnan Hiroshima Minami-Machi(land interest) Apr. 2007 1,940 1,754 2,540 5.2% 2,540 5.2% 0 0.0%You Me Town Hiroshima Feb.2008 23,200 20,000 21,200 6.3% 21,600 6.2% －400 ＋0.1% ○Mitsui Shopping Park ALPARK (East Building) Feb.2013 5,400 4,912 5,500 6.4% 5,520 6.4% －20 0.0% ○

Kyushu/Okinawa

Papillon Plaza Aug. 2004 4,810 4,504 5,440 4.9% 5,330 5.0% +110 －0.1% ○Frespo Tosu (land interest) Nov. 2007 3,178 3,256 3,110 6.5% 3,060 6.6% +50 －0.1% ○Don Quijote Fukuoka Tenjin Dec. 2009 3,700 3,337 4,290 4.2% 4,180 4.3% +110 －0.1% ○VIORO Feb. 2012 10,100 9,675 11,900 3.8% 11,900 3.9% 0 －0.1% ○ ○KOJIMA x BIC CAMERA Naha Store Jan. 2016 1,850 1,922 2,450 5.6% 2,410 5.7% +40 －0.1% ○

Total 293,408 261,243 318,900 317,900 +1,000

Appraisal value

Unrealized gain: ¥57.6 billion(up ¥3.0 billion from 26th period)

(million yen)

42

1. CR = Cap rate determined by the direct reduction approach 2. DR = Discount rate determined by the discounted cash flow approach3. TCR = Terminal cap rate determined by the discounted cash flow approach 4. The cap rate for these properties is calculated using the residual land method.5. The appraisal values are for FRI’s 66% co-ownership stake. 6. Appraisal value at the end of the 26th period is based on appraisal value determined at the time of acquisition.

Area Property name

27th period (December 31, 2017) 26th period (June 30, 2017)

Appraisal value

(million yen)

Direct reduction approach

Discounted cash flow approach

Appraisal value

(million yen)

Direct reduction approach

Discounted cash flow approach

CR1 DR2 TCR3 CR1 DR2 TCR3


AEON STYLE Shinagawa Seaside 19,100 5.7% 5.6% 6.1% 19,100 5.7% 5.6% 6.1%Kamiikedai Tokyu Store 1,860 4.7% 4.4% 4.8% 1,820 4.8% 4.5% 4.9%Summit Store Takinogawa Momiji-Bashi 3,700 4.9% 4.5% 5.0% 3,630 5.0% 4.6% 5.1%Queen’s Isetan Suginami-Momoi 4,110 4.9% 4.6% 5.0% 4,110 4.9% 4.6% 5.0%Mitsui Outlet Park IRUMA 22,600 5.4% 5.2% 5.6% 22,600 5.4% 5.2% 5.6%Costco Wholesale Warehouse Iruma (land interest) 2,750 5.4% 4.8% 5.7% 2,750 5.4% 4.8% 5.7%Desigual Harajuku 3,400 3.2% 3.0% 3.4% 3,400 3.2% 3.0% 3.4%Ito-Yokado Higashi-Yamato 11,100 5.5% 5.3% 5.7% 11,100 5.5% 5.3% 5.7%AEON TOWN Tanashi-Shibakubo 3,300 5.6% 5.3% 5.7% 3,300 5.6% 5.3% 5.7%GINZA GLASSE 15,100 3.0% 2.8% 3.2% 15,100 3.0% 2.8% 3.2%Shimura Shopping Center 5,800 4.5% 4.6% 4.7% 5,690 4.6% 4.7% 4.8%Mitsui Shopping Park LaLagarden KASUKABE 11,200 5.3% 5.1% 5.5% 11,000 5.4% 5.2% 5.6%Summit Store Yokohama Okano (land interest)4 6,800 4.6% 4.4% - 6,630 4.7% 4.5% -Ikebukuro Square 24,700 4.3% 4.1% 4.5% 24,400 4.4% 4.2% 4.6%Kohnan Kawasaki-Odasakae Mall (land interest)4 8,950 4.5% 4.3% - 8,710 4.6% 4.4% -Mitsui Shopping Park LaLaport SHIN-MISATO Annex 3,980 5.2% 5.0% 5.4% 3,980 5.2% 5.0% 5.4%Mitsui Shopping Park LaLaport SHIN-MISATO5 20,200 4.8% 4.5% 4.9% 20,300 4.8% 4.5% 4.9%Costco Wholesale Warehouse Shin-Misato (land interest) 3,950 4.4% 4.5% 4.3% 3,950 4.4% 4.5% 4.3%Super Viva Home Zama and Super Sanwa Zama Higashihara (land interest)6 4,560 - 4.0% - 4,550 - 4.0% -

Chubu AEON MALL NAGOYADOME-Mae 25,200 5.2% 4.9% 5.3% 25,200 5.2% 4.9% 5.3%Mitsui Shopping Park LaLaport IWATA 15,300 6.1% 5.9% 6.3% 15,400 6.1% 5.9% 6.3%

Kansai AEON MALL Ibaraki 23,800 5.2% 5.0% 5.4% 23,800 5.2% 5.0% 5.4%Belltown Tambaguchi Eki-Mae Store 2,870 5.0% 4.6% 5.0％ 2,820 5.1% 4.7% 5.1％QANAT Rakuhoku 8,640 4.8% 4.5% 4.9% 9,010 4.9% 4.6% 5.0%Shinsaibashi Square 9,500 3.5% 3.3% 3.7% 9,010 3.7% 3.5% 3.9%

Chugoku Home Center Kohnan Hiroshima Minami-Machi (land interest) 2,540 5.2% 4.8% - 2,540 5.2% 4.8% -

You Me Town Hiroshima 21,200 6.3% 6.0% 6.4% 21,600 6.2% 5.9% 6.3%Mitsui Shopping Park ALPARK (East Building) 5,500 6.4% 6.2% 6.7% 5,520 6.4% 6.2% 6.7%

Kyushu/Okinawa

Papillon Plaza 5,440 4.9% 4.6% 5.0% 5,330 5.0% 4.7% 5.1%Frespo Tosu (land interest) 3,110 6.5% 7.2% - 3,060 6.6% 7.3% -Don Quijote Fukuoka Tenjin 4,290 4.2% 4.0% 4.4% 4,180 4.3% 4.1% 4.5%VIORO 11,900 3.8% 3.9% 4.0% 11,900 3.9% 4.0% 4.1%KOJIMA x BIC CAMERA Naha Store 2,450 5.6% 5.4% 5.8% 2,410 5.7% 5.5% 5.9%

Appraisal value (supplement)

43

Total amount

(million yen)Lender No. Amount

(million yen) Interest rate Drawdown date Maturity date Loan period

(approximate) Remarks

Long-term borrowings

15,500 Sumitomo Mitsui Banking Corporation

1 2,000 1.27750% 6/20/2011 6/20/2018 7.0 years

Unsecured/Unguaranteed

2 3,000 1.16875% 2/20/2012 2/20/2020 8.0 years3 1,000 1.01125% 8/20/2012 8/20/2020 8.0 years4 3,000 1.15625% 2/1/2013 2/1/2023 10.0 years5 1,500 0.60848% 5/19/2014 11/19/2020 6.5 years6 2,000 0.27500% 7/2/2015 7/2/2019 4.0 years7 2,000 0.16830% 6/20/2017 6/21/2021 4.0 years8 1,000 0.13830% 8/29/2017 8/30/2021 4.0 years

11,500 Mitsubishi UFJ Trust and Banking Corporation

9 2,000 1.27750% 6/20/2011 6/20/2018 7.0 years10 2,500 0.82000% 2/1/2013 2/1/2021 8.0 years11 2,000 0.68500% 2/19/2015 2/19/2025 10.0 years12 1,500 0.54400% 3/2/2015 3/4/2024 9.0 years13 1,500 0.62000% 3/2/2015 3/3/2025 10.0 years14 1,000 Note 3 0.88600% 7/2/2015 7/2/2027 12.0 years15 1,000 0.46130% 3/9/2016 3/9/2028 12.0 years

10,500 Development Bank of Japan Inc. 16 2,000 1.20875% 8/19/2013 8/21/2023 10.0 years17 1,500 1.17000% 3/17/2014 5/19/2025 11.2 years18 2,000 0.35880% 3/9/2016 3/9/2027 11.0 years 19 1,000 0.37190% 4/19/2016 7/20/2027 11.3 years 20 4,000 0.33415% 8/9/2016 2/9/2028 11.5 years

5,800 Mizuho Bank, Ltd. 21 1,500 1.30750% 5/19/2011 5/21/2018 7.0 years22 1,500 0.90500% 3/15/2013 3/15/2022 9.0 years23 1,300 Note 3 0.59750% 7/22/2014 7/19/2022 8.0 years24 1,500 0.21076% 7/19/2017 1/19/2022 4.5 years

Total amount




Short-termborrowings

4,500 Mizuho Bank, Ltd. 1 3,500 0.08545％ 1/19/2018 2/19/2018 1 monthUnsecured/

Unguaranteed2 1,000 0.06077％ 2/1/2018 2/19/2018 2 weeks1,000 The 77 Bank, Ltd. 3 1,000 0.08545％ 1/19/2018 2/19/2018 1 month

Total short-term borrowings 5,500

Short-term borrowings


(as of February 15, 2018)


1. Repayment method is lump-sum repayment for all borrowings. 2. All interest rates on borrowings (except for those covered by note 3) are fixed rates.3. These borrowings have been swapped into fixed rates to avoid the risk of interest rate fluctuations. The rates indicated are those at the time the rate swap contracts were formed.

Borrowings and bonds

44

Total amount





5,700 Sumitomo Mitsui Trust Bank, Limited

25 2,200 1.04125% 12/16/2011 12/14/2018 7.0 years

Unsecured/Unguaranteed

26 1,500 0.27500% 7/2/2015 7/2/2019 4.0 years27 2,000 0.30874% 11/30/2015 11/30/2021 6.0 years

4,400 Mizuho Trust & Banking Co., Ltd. 28 2,500 0.69000% 2/1/2013 2/3/2020 7.0 years29 1,900 0.15380% 3/9/2016 3/11/2024 8.0 years

4,000 The Norinchukin Bank 30 2,000 0.77250% 7/18/2013 7/18/2019 6.0 years31 1,000 Note 3 0.33300% 1/7/2015 1/23/2023 8.0 years32 1,000 0.21750% 1/23/2018 1/23/2023 5.0 years

4,000 THE BANK OF FUKUOKA, LTD. 33 1,000 0.33500% 11/21/2016 11/24/2026 10.0 years34 2,000 0.42500% 2/24/2017 2/24/2027 10.0 years35 1,000 0.35630% 2/1/2018 2/19/2026 8.1 years

2,500 The Bank of Tokyo-Mitsubishi UFJ, Ltd.

36 1,000 1.28625% 8/19/2011 8/19/2019 8.0 years37 1,500 0.99000% 2/24/2012 2/22/2019 7.0 years

2,000 The Daishi Bank, Ltd. 38 1,000 Note 3 0.04805% 2/10/2016 2/10/2023 7.0 years 39 1,000 0.29785% 8/1/2017 2/19/2025 7.6 years

2,000 The Iyo Bank, Ltd. 40 1,000 Note 3 0.61150% 4/1/2015 5/14/2025 10.1 years41 1,000 0.09000% 11/21/2016 11/22/2021 5.0 years

2,000 The Yamaguchi Bank, Ltd. 42 1,000 0.81125% 8/18/2014 8/19/2024 10.0 years43 1,000 0.56000% 6/19/2017 6/19/2029 12.0years

1,000 Resona Bank, Limited. 44 1,000 Note 3 0.46490% 3/2/2015 3/4/2024 9.0 years1,000 The Hiroshima Bank, Ltd. 45 1,000 Note 3 0.40250% 11/25/2014 11/25/2021 7.0 years1,000 The Gunma Bank, Ltd. 46 1,000 Note 3 0.27100% 12/16/2014 12/16/2020 6.0 years1,000 THE HACHIJUNI BANK, LTD. 47 1,000 Note 3 0.25190% 11/19/2015 5/19/2022 6.5 years1,000 The Musashino Bank, Ltd. 48 1,000 0.45333% 3/25/2014 5/27/2019 5.2 years1,000 The 77 Bank, Ltd. 49 1,000 0.41130% 12/22/2016 12/22/2026 10.0 years

Total long-term borrowings 75,900

Investment corporation bondsTotal

amount (million yen)

Issue No. Amount (million yen) Interest rate Issue date Maturity date Period Remarks

Investment corporation

bonds3,000 2nd Investment corporation bonds 1 3,000 0.708% 11/25/2016 11/25/2031 15.0 years Unsecured/

Unguaranteed

Total Investment corporation bonds 3,000

Borrowings and bonds

1. Repayment method is lump-sum repayment for all borrowings. 2. All interest rates on borrowings (except for those covered by note 3) are fixed rates.3. These borrowings have been swapped into fixed rates to avoid the risk of interest rate fluctuations. The rates indicated are those at the time the rate swap contracts were formed.



45

FRI maintains top-level ratings among J-REITs, making its investment units eligible for purchase by the Bank of Japan.

Ratings and indices

Rating Firm Category Rating Outlook

JCR Long-term issuer AA Stable

R&I Issuer AA- Stable

S&P

Long-term Ａ+ Stable

Short-term Ａ-1 Stable

Inclusion in global REIT indicesRatings

Indices

FTSE EPRA/NAREIT Global Real Estate Index

Dow Jones Global Select REIT Index

S&P Global REIT Index/S&P Developed REIT Index

GPR 250 Index/GPR 250 REIT Index

(as of December 31, 2017)

(Logo presented above is based on the websites of the aforementioned agencies)

46

508 1,011 516 1,003 516 1,003 1,637 763 276 763 460

96

92

83

32

114

122

33

87

125

171

158

411

657

1,636

1,161

1,608

712 879 1,072

487

1,306

1,715

1,138 1,450

0

500

1,000

1,500

2,000

第18期第19期第20期第21期第22期第23期第24期第25期第26期第27期第28期

(As of December 31, 2017)

Average remaining years until full repayment of leasehold andsecurity deposits: 8.9 years

Over 20 years4.0%

(百万円)

Leasehold and security deposits and depreciation

Repayment ends at You Me Town

Hiroshima

Repayment starts at You Me Town

Hiroshima Repayment ends at AEON STYLE Shinagawa

Repayment ends at NAGOYADOME-Mae

Remaining period until full repayment

Leasehold and security deposit features

Schedule of security deposit repayment

Since FRI contracts long-term leases, it can use leasehold and security deposits to procure significant long-term funding.

Since FRI holds many security deposits at zero interest, these deposits provide a source of low-cost funding.

Utilizing depreciation

Utilizing capital equivalent to each period’s depreciation enables aggressive strategic investment in addition to the repayment of security deposits.

18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28th(forecast)

(million yen)

Over 10 years: Approx. 40%

Over 5 years: Approx. 60%

■Property acquisition, etc. ■Large-scale

renovations ■Ordinary capital expenditure ■Repayment of security

deposits

Within 5 years

36.2%

Over 5 years, up to 10 years

24.4%


14.9%


20.6%

0億円

10億円

20億円

2018年 2020年 2022年 2024年 2026年 2028年2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

2.0(billion yen)

1.0

0

2017201620152014 20182013

47

Approx.42%

50.0%

40.0%

¥9,000

第1期

（04/12期）

第2期

（05/6期）

第3期

（05/12期）

第4期

（06/6期）

第5期

（06/12期）

第6期

（07/6期）

第7期

（07/12期）

第8期

（08/6期）

第9期

（08/12期）

第10期

（09/6期）

第11期

（09/12期）

第12期

（10/6期）

第13期

（10/12期）

第14期

（11/6期）

第15期

（11/12期）

第16期

（12/6期）

第17期

（12/12期）

第18期

（13/6期）

第19期

（13/12期）

第20期

（14/6期）

第21期

（14/12期）

第22期

（15/6期）

第23期

（15/12期）

第24期

（16/6期）

第25期

（16/12期）

第26期

（17/6期）

第27期

（17/12期）

第28期(予想)

（18/6期）

＊＊

4,771 5,622 6,045

7,218 8,648

8,846 8,922 8,980 9,205 9,274 9,368 9,294 9,097 9,239 9,299 9,991

9,191 9,173 9,405 10,211 9,707 9,360 9,695 9,694 9,903 10,022 10,146 10,080

9.3% 8.3%14.3%

34.0% 35.2% 35.9% 37.5%41.0% 41.0%

45.5% 46.2% 45.7%43.6%

46.8% 46.3%49.6%

42.5% 41.0%37.6%

39.2% 38.0%41.7% 41.2% 39.1%

42.3% 41.6% 42.2%

Growth cycle and property acquisitions

公募増資

一口当たり

分配金(

円)

資産規模(

取得価格ベース)

LTV

Public offerings

Distribution

per unit (yen)Asset size

(acquisition price basis)

LTV

Sponsor

July 2010 July 2012July 2008March 2008Third-party allotment

March 2013

Sound, careful control of LTV

Track record of stable distributions

Seeking to grow FRI’s asset size tomaintain and improve the stability of theearnings base

スポンサーからの取得

スポンサー外からの取得

資産規模(億円)

Property sales Property sale

Asset size (billion yen)

Acquisitions from the sponsor

Acquisitions not from the sponsor

1st 2nd 3rd 4th 5th 6th 7th 8th 9th 10th 11th 12th 13th 14th 15th 16th 17th 18th 19th 20th 21st 22nd 23rd 24th 25th 26th 27th 28thDec.‘04 Jun.’05 Dec.‘05 Jun.’06 Dec.’06 Jun.’07 Dec.’07 Jun.’08 Dec.‘08 Jun.’09 Dec.’09 Jun.’10 Dec.’10 Jun.’11 Dec.’11 Jun.’12 Dec.’12 Jun.‘13 Dec.’13 Jun. ’14 Dec.‘14 Jun.‘15 Dec.’15 Jun.’16 Dec. ‘16 Jun.’17 Dec. ’17 Jun.’18

Japan Tobacco March 2008 onward: Mitsui Fudosan

*FRI implemented a two-for-one split of its investment units effective January 1, 2014. Distributions before the split have been divided by two and truncated to the nearest yen.** Distribution per unit (DPU), LTV and asset size forecasts for the 28th period are given as the figures announced in “Summary of Financial Results for the 27th Fiscal Period,” published February 15, 2018.

2,7391,231 1,596 1,743 1,780 2,068 2,212 2,458 2,7162,3701,780 2,212 2,592 2,678 2,659 2,831648 648 669 917 967 999948 2,831 2,9342,890 2,890 2,934

48

26,060 26,060 29,160

57,960 67,960 76,760 102,560 106,490

123,660 138,760

3,100

28,800

10,000 8,800

25,800

3,930 17,170

15,100

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

2008年6/12期 2009年6/12期 2010年6/12期 2011年6/12期 2012年6/12期 2013年6/12期 2014年6/12期 2015年6/12期 2016年6/12期 2017年6/12期

Assets acquired from the sponsor (Mitsui Fudosan)

Properties acquired from Mitsui Fudosan

Average annual acquisition price:¥13,876 million

Non-sponsor17.7%

Japan Tobacco35.1%

Mitsui Fudosan,etc. 47.3%

Acquisition resources

Steady track record of property acquisitions via the sponsor’s robust pipeline


Annex¥3.9 billion

Queen’s Isetan Suginami-Momoi

¥3.5 billion

AEON TOWN Tanashi-Shibakubo

¥3.1 billion

GINZA GLASSE¥13.6 billion

Mitsui ShoppingPark LaLagarden

KASUKABE¥10.0 billion

QANAT Rakuhoku¥8.8 billion

Ikebukuro Square¥20.4 billion

Shinsaibashi Square¥8.6 billion

Mitsui Shopping Park LaLaport

SHIN-MISATO (50%)¥15.1 billion


¥19.9 billion


¥15.2 billion


¥5.4 billion

Mitsui Shopping Park LaLaportSHIN-MISATO (16%)

¥4.7 billion

Costco Wholesale Warehouse

Iruma (land interest)¥2.6 billion

Costco Wholesale WarehouseShinｍisato (land interest)

¥3.8 billion

(million yen)

8th/9th 10th/11th 12th/13th 14th/15th 16th/17th 18th/19th 20th/21st 22nd/23rd 24th/25th 26th/27th

Total acquisition

price:¥293.4 billion

10 properties¥102.8 bn

9 properties¥51.8 bn

14 proper-

ties¥138.7

bn

(As of Feb. 15, 2018Cumulative assets acquired from Mitsui Fudosan, etc.

49

Mitsui Fudosan’s retail facility development

Total:Approx.

¥873.5 billion

Retail facilities inoperation 14%

Planned & underdevelopment 45%

Office buildings in operation 20%

Rental housing in operation 6%

Logisticsfacilities inoperation 8%

As of March 31, 2017 Opening year Project name Location

2014

LaLa terrace MUSASHIKOSUGI Kawasaki City, Kanagawa

MITSUI OUTLET PARK SAPPORO KITA-HIROSHIMA (2nd stage) Kitahiroshima City, Hokkaido

MITSUI OUTLET PARK KISARAZU (2nd stage) Kisarazu City, Chiba

LaLaport KASHIWANOHA (North Building) Kashiwa City, Chiba

Akarenga TERRACE Sapporo City, Hokkaido

IIDABASHI SAKURA TERRACE Chiyoda City, Tokyo

LaLaport IZUMI Izumi City, Osaka

Shin-Kawasaki Square Kawasaki City Kanagawa

2015

LaLaport FUJIMI Fujimi City, Saitama

MITSUI OUTLET PARK KLIA SEPANG (1st stage) Selangor, Malaysia

MITSUI OUTLET PARK HOKURIKU OYABE Oyabe City, Toyama

MITSUI OUTLET PARK MAKUHARI (3rd stage) Chiba City, Chiba

LaLaport EBINA Ebina City, Kanagawa

LaLaport EXPOCITY Suita City, Osaka

Mitsui Outlet Park LINKOU New Taipei, Taiwan

2016 LaLaport SHONAN HIRATSUKA Hiratsuka City, Kanagawa

2017

SAKAE GLOBE Nagoya City, Aichi

KICHIJOJI SQUARE Musashino City, Tokyo

MITSUI OUTLET PARK JAZZ DREAM NAGASHIMA (5th stage) Kuwana City, Mie

MITSUI OUTLET PARK KLIA SEPANG (2nd stage) Selangor, Malaysia

2018

LaLaport NAGOYA KOMEI Nagoya City, Aichi

MITSUI OUTLET PARK KISARAZU (3rd stage) Kisarazu City, Chiba

Shinsaibashi-suji 1-chome Project Osaka City, Osaka

MITSUI OUTLET PARK TAICHUNG PORT Taichung, Taiwan

2019 LaLaport NUMAZU Numazu City, Shizuoka

2021MITSUI OUTLET PARK KLIA SEPANG (3rd stage) Selangor, MalaysiaLaLaport Kuala Lumpur Kuala Lumpur, Malaysia

TBDRetail Facility Development Project in Togocho, Aichi Aichi-gun, Aichi

Miyashita Park Project Shibuya City, Tokyo

Overseas rental assets in operation8%

Main retail facility projects under developmentBreakdown of Mitsui Fudosan’s inventory of property for sale to investors

REIT sponsored by the Mitsui Fudosan Group, etc.

Property sales to various investors

Institutional investors, corporations, etc.

Buyers commission property management

Mitsui Fudosan’s model for joint value creation with investors

Prepared from data in Mitsui Fudosan’s “Investor Presentation February 2018”

Prepared from data in Mitsui Fudosan’s “Investor Presentation February 2018”

50

Mitsui Fudosan’s retail facility operation

Mitsui Fudosan’s retail facility operation

MITSUI OUTLET PARK SAPPORO KITAHIROSHIMA

LaLaport SHONAN HIRATSUKA LaLaport FUJIMI

COREDO Muromachi 1Tokyo Midtown

Source: Mitsui Fudosan. As of October 1, 2017. Includes properties operated and managed on a consignment basis as well as three overseas properties.

Number of facilities 114

Total floor space Approx. 5,200,000 m2

Leased floor space Approx. 2,900,000 m2

Tenant stores Approx. 7,700

Tenant companies Approx. 2,300

Mitsui Fudosan owns and operates retail facilities across Japan, mainly in the Tokyo metropolitan and Kansai areas

(million yen)

Rental revenue of Mitsui Fudosan’s retail facilities (non-consolidated)

Source: Fact books for the years ended March 31, 2002-2017, Mitsui Fudosan

34,657 36,935 37,601 45,947 51,716 62,091

87,393 103,191

118,823 123,114

129,235 148,025 157,716

169,894

201,371 215,221

0

50,000

100,000

150,000

200,000

250,000

2002年3月期

2003年3月期

2004年3月期

2005年3月期

2006年3月期

2007年3月期

2008年3月期

2009年3月期

2010年3月期

2011年3月期

2012年3月期

2013年3月期

2014年3月期

2015年3月期

2016年3月期

2017年3月期

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

● Regional SC ● Mitsui Outlet Park● Urban retail facilities ● Other Hokkaido

Tohoku

Tokyo metropolitanareaChubu

Kansai

Chugoku

Kyushu

51

Utilizing the support of the sponsor

Frontier REIT SC Management Co., Ltd.

Asset custodianshipPreventive maintenance of buildings/facilities, approval of construction by tenants, emergency response, etc.

Operation and managementManagement company supervision, reporting on operations/management

Accounting support

Retail facility operation/management

Specialized in the operation and management of properties owned by FRI

Support for external growth• Rich property pipeline

• Provides brokerage and information regarding properties from third parties

Support for internal growth• Operation/management using the Mitsui Fudosan Group’s expertise

• Provides information on the retail market and tenant leasing

Asset Management Company

Comprehensive developer

52

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

0

100,000

200,000

300,000

400,000

500,000

600,000

700,000

2004/08 2005/08 2006/08 2007/08 2008/08 2009/08 2010/08 2011/08 2012/08 2013/08 2014/08 2015/08 2016/08 2017/08

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

0%

20%

40%

60%

80%

100%

120%

140%

160%

180%

200%

220%

240%

2004/08 2005/08 2006/08 2007/08 2008/08 2009/08 2010/08 2011/08 2012/08 2013/08 2014/08 2015/08 2016/08 2017/08

Average trading volumePrice at end of 27th period

876438,000

(27th period)(Dec. 29, 2017)

Investment unit price (Aug. 9, 2004 – Dec. 31, 2017)

FRI unit price(left axis)

Volume (right axis)

(yen)Source: QUICK

(units)

＊FRI投資口価格はIPO価格を100%とする。＊東証REIT指数は2004年8月9日の終値を100%とする。

Price comparison (Aug. 9, 2004 – Dec. 31, 2017)Source: QUICK

FRI unit price (left axis) Distribution yield (right axis)TSE REIT Index (left axis)

*For FRI unit price, the price upon IPO has been set at 100%

*For TSE REIT Index, the closing value of August 9,2004 has been set at 100%

* FRI implemented a two-for-one split of its investment units effective January 1, 2014. Accordingly, unit prices before December 25, 2013, have been divided by two.

Investment unit price

53

25.7%

25.5%

25.5%

26.5%

26.8%

25.5%

28.1%

26.4%

28.1%

26.3%

40.8%

45.8%

46.8%

44.3%

47.2%

46.0%

43.2%

45.0%

44.1%

42.8%

8.4%

7.3%

6.7%

7.0%

6.5%

6.9%

6.6%

6.5%

6.7%

7.4%

9.4%

8.6%

8.8%

8.8%

8.6%

8.7%

8.6%

8.5%

8.2%

8.4%

15.8%

12.7%

12.2%

13.5%

10.8%

12.9%

13.5%

13.5%

12.9%

15.1%

0% 20% 40% 60% 80% 100%

第18期

(13/6月)

第19期

(13/12月)

第20期

(14/6月)

第21期

(14/12月)

第22期

(15/6月)

第23期

（15/12期）

第24期

（16/6期）

第25期

（16/12期）

第26期

（17/6期）

第27期

（17/12期）

金融機関投信等個人・その他その他の国内法人外国法人等

第26期(17/6期)

第25期(16/12期)

第24期(16/6期)

第23期(15/12月)

第22期(15/6月)

第21期(14/12月)

第20期(14/6月)

第19期(13/12月)

第18期(13/6月)

第27期(17/12月)

Unitholders

Name Units held Proportion

Japan Trustee Services Bank, Ltd. (Trust Account) 105,289 21.2 %

The Master Trust Bank of Japan, Ltd. (Trust Account) 64,635 13.0 %

Mitsui Fudosan Co., Ltd. 29,200 5.9 %

The Nomura Trust and Banking Co., Ltd. (Investment Trust Account) 21,301 4.3 %Trust & Custody Services Bank, Ltd. (Securities Investment Trust Account)

16,708 3.4 %

The Yamanashi Chuo Bank, Ltd. 9,543 1.9 %State Street Bank-West Pension Fund Clients-Exempt 505233 7,656 1.5 %

The Chugoku Bank, LTD. 6,275 1.3 %

State Street Bank and Trust Company 505223 6,275 1.3 %DFA INTERNATIONAL REAL ESTATE SECURITIES PORTFOLIO 6,138 1.2 %

Total 273,020 55.0%

* All as of December 31, 2017

Financial institutions*

Individuals, other

Other domestic

corporations

Overseas corporations and others

Total

27th period(Dec. 2017) 182 8,259 200 216 8,857

26th period(June 2017) 183 7,713 190 206 8,292

Change -1 +546 +10 +10 +565

Unitholders by type

Principal unitholders* (top 10)

27th 12/17

26th 6/17

25th 12/16

24th 6/16

23rd 12/15

22nd 6/15

21st 12/14

20th 6/14

19th 12/13

18th 6/13

*Includes mutual funds, etc.

■Financial institutions ■Mutual funds, etc. ■Individuals, other■Other domestic corporations ■Overseas corporations and others

Units held by unitholder type

Asset Management Company

contents · consider replacing properties that pose future uncertainties in order to further...

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