Fiscal Period Ended July 2016 (3rd Fiscal Period)
Financial Results Briefing Materials
Securities Code: 3455
Asset Management Company
Table of Contents
I. About Healthcare & Medical Investment Corporation (from P2) 1. Investment Philosophy 2. Four Features II. Financial Summary (from P5) 1. 3rd Fiscal Period Topics 2. 3rd Fiscal Period Financial Highlights 3. 4th Fiscal Period and 5th Fiscal Period Earnings Forecast 4. Financial Status III. Portfolio Management Status (from P12) 1. Properties Acquired in 3rd Fiscal Period 2. Portfolio Highlights 3. Portfolio Map 4. Portfolio List 5. Operator List IV. External Growth Strategy (from P19) 1. Road Map to External Growth 2. Pipeline Status 3. Action Strategy 4. Action Case Examples
V. Appendix (from P24) 1. Environment Surrounding Healthcare Facilities (Facilities and Housing for the Elderly) 2. Environment Surrounding Healthcare Facilities (Medical Service-Related Facilities) 3. Detailed Portfolio List 4. Overview of Operators 5. Status of Unitholders 6. Overview of Unitholder Special Benefit Plan 7. Information related to Investment Units 8. HCM’s Network 9. Profile of Asset Management Company 10. Profile of Major Sponsors
1
2
I. About Healthcare & Medical Investment Corporation
Serve as a conduit between the nursing care and medical service industries and the capital markets
1. Investment Philosophy
3
We seek to realize a society where all people can live vibrantly and with peace of mind
Contribute to an aging society
Promote the supply of healthcare facilities as social infrastructure
Develop a portfolio specialized in healthcare facilities, for which demand is expected to grow
Maximize unitholder value over the medium and long term
1
Stable asset management base utilizing the sponsors’ functions and know-how 2
Stable cash flow based on long-term fixed-rent lease agreements 4
Aim to serve as a conduit between the nursing care and medical service industries and the capital markets by steadily investing in and holding healthcare facilities, which must be upgraded and expanded, and thereby contribute to the aging society
Conduct stable asset management and expand its portfolio in the medium to long term by proactively utilizing the strength of the main sponsors, which have expertise in “nursing care and medical service,” “fund management” and “finance”
3
Aim to secure stable revenues over the medium to long term by concluding long-term fixed-rent lease agreements with carefully-selected credible operators and through continuous monitoring
Focused investment in healthcare facilities, for which demand is expected to grow
2. Four Features
4
Secure acquisition opportunities by utilizing extensive networks Secure opportunities to acquire healthcare facilities by utilizing the extensive networks of sponsors, supporting companies and the asset management company as well as the warehousing function and first refusal rights provided in the support agreements, etc.
II. Financial Summary
5
Property name Bonsejour Yotsugi Medical Home
Bonsejour Itami Acquisition price (Note 1)
824 million yen 514 million yen
1. 3rd Fiscal Period Topics
Number of properties: 18 properties (+2 properties from previous fiscal period)
Total acquisition price: 25.0 billion yen (+1.3 billion yen from previous fiscal period)
Distribution per unit: 2,340 yen (forecast: 2,100 yen; +11.4% from forecast) (Note 2)
Acquired 2 paid nursing homes by utilizing borrowings and cash reserves on March 30, 2016
6
0.35%(△0.05%)
1.1 years(△0.6 years) 50.2%(+1.8%)
New Property Acquisition
Management Performance
(Note 1)Acquisition price does not include acquisition expenses, consumption tax, etc. (Note 2)The forecast, which is the forecast at the previous fiscal period’s settlement of accounts, is the forecast figure disclosed in the Financial Report for the 2nd Fiscal Period dated March 15, 2016. (Note 3)LTV is the ratio of interest-bearing liabilities to total assets, rounded to the first decimal place. (Note 4)Each is the weighted average based on the loan amount, rounded down to or at two decimal places.
Period-End Financial Status (Comparison with Previous Fiscal Period)
Loan balance 14.0 billion yen
(+1.0 billion yen)
LTV (Note 3)
Average borrowing interest rate (Note 4)
Average remaining term to maturity (Note 4)
2-1. 3rd Fiscal Period Financial Highlights2
2nd Fiscal Period (Ended Jan. 2016)
3rd Fiscal Period (Ended July 2016)
Actual Forecast (Note) Actual Comparison
with Forecast
Comparison with 2nd Fiscal
Period
(A) (B) (C) (C-B) (C-A)
Operating revenue 745 745 771 +26 +26
Operating expenses 361 432 429 △2 +67
Expenses related to rent business 222 284 283 △1 +61
(Depreciation) 195 197 202 +5 +6
Operating income 383 313 342 +28 △41
Ordinary income 329 254 282 +28 △46
Net income 328 253 281 +28 △46
Distribution per unit (yen) 2,730 2,100 2,340 +240 △390
(Note)The forecast for the 3rd Fiscal Period (B) is the forecast figure announced in the Financial Report for the 2nd Fiscal Period dated March 15, 2016.
Main Factors of Difference (Comparison with Forecast)
Difference in operating revenue (+26) ✓Increase in rent income due to property acquisition (+26)
Difference in operating expenses (-2) ✓Decrease in expenses related to rent business (-1) ・Repair expenses (-6) ・Depreciation (+5) ✓Other expenses (-1) ・Decrease in property taxes, advertising expenses, etc.
Statement of Income (Unit: million yen)
7
Main Factors of Difference (Comparison with 2nd Fiscal Period)
Difference in operating revenue (+26) ✓Increase in rent income due to property acquisition (+26) Difference in operating expenses (+67) ✓Increase in expenses related to rent business (+61) ・Fixed asset tax and city planning tax (+49) ・Depreciation (+6)
Decrease in non-operating income (-6) ・Decrease in insurance income (-6)
2nd Fiscal Period (As of End of
Jan. 2016) (A)
3rd Fiscal Period (As of End of
July 2016) (B)
Difference
(B)-(A)
Assets
Current assets 2,014 1,848 △165
Cash and deposits (Note 1) 1,959 1,796 △162
Other 54 52 △2
Non-current assets 24,837 26,030 +1,193
Property, plant and equipment 24,781 25,994 +1,212
Buildings in trust (Note 2) 14,194 14,663 +468
Accumulated depreciation △358 △560 △202
Land in trust 10,944 11,891 +946
Intangible assets 7 6 △0
Investments and other assets 48 29 △18
Deferred assets 23 17 △5
Total assets 26,874 27,896 +1,022
2nd Fiscal Period (As of End of
Jan. 2016) (A)
3rd Fiscal Period (As of End of
July 2016) (B)
Difference
(B)-(A)
Liabilities
Current liabilities 236 7,269 +7,033
Short-term loans payable - 1,000 +1,000
Current portion of long-term loans payable - 6,000 +6,000
Other 236 269 +33
Non-current liabilities 13,595 7,631 △5,964
Long-term loans payable 13,000 7,000 △6,000
Tenant leasehold and security deposits 595 631 +35
Total liabilities 13,831 14,901 +1,069
Net assets Unitholders’ capital 12,713 12,713 0
Unappropriated retained earnings 329 282 △46
Total net assets 13,042 12,995 △46
Total liabilities and net assets
26,874 27,896 +1,022
(Note 1)Cash and deposits includes cash and deposits in trust. (Note 2)Buildings in trust includes facilities attached to buildings in trust, structures in trust, and tools, furniture and fixtures in trust.
2-2. 3rd Fiscal Period Financial Highlights
Balance Sheet
8
(Unit: million yen) (Unit: million yen)
3. 4th Fiscal Period and 5th Fiscal Period Earnings Forecast
3rd Fiscal Period (Ended July 2016)
4th Fiscal Period (Ending Jan. 2017)
5th Fiscal Period (Ending July 2017)
Actual Forecast Comparison with 3rd Fiscal Period
Actual Forecast
Comparison with 4th Fiscal Period
Forecast
(A) (B) (B-A) (C) (C-B)
Operating revenue 771 784 +12 784 0
Operating expenses 429 439 +10 435 △4
Expenses related to rent business 283 288 +5 290 +2
(Depreciation) 202 204 +2 205 +0
Operating income 342 344 +2 348 +4
Ordinary income 282 285 +2 279 △5
Net income 281 284 +2 278 △5
Distribution per unit (yen) 2,340 2,360 +20 2,310 △50 610
2,730 2,340 2,360 2,310
0
500
1,000
1,500
2,000
2,500
3,000
第1期 第2期 第3期 第4期 第5期
4th Fiscal Period Forecast (Comparison with 3rd Fiscal Period Actual)
◆ Difference in operating revenue (+12) ・Full-period contribution of rent income from properties acquired in 3rd Fiscal Period (+12) Difference in operating expenses (+10) ✓Difference in expenses related to rent business (+5) ・Depreciation (+2) ・Repair expenses (+2) ✓Difference in other expenses (+5) ・Asset management fee (+3) ・Expenses related to general meeting of unitholders (+4) ・Property taxes, etc. (-2)
5th Fiscal Period Forecast (Comparison with 4th Fiscal Period Forecast)
Difference in operating expenses (-4) ・Increase in fixed asset tax and city planning tax (+2) ・Absence of expenses related to general meeting of unitholders (-4) Difference in non-operating expenses (+9) ・Increase in refinancing related expenses, and interest expenses due to conversion into longer terms and fixed rates (+9)
Statement of Income
9
(Unit: million yen)
1st FP 2nd FP 3rd FP 4th FP 5th FP
2,500 2,100
Initial Forecast Actual Forecast
Changes in Distribution Per Unit (yen)
(Note)The forecast figures are based on the assumption that there will be no new property acquisition.
4-1. Financial Status
Category Lender Drawdown Date
Balance (million yen)
Interest Rate Maturity
Short-term
Loans
SMBC March 30, 2016
1,000
Base interest rate (Note1)
+ 0.25%
March 21, 2017
Long-term loans
SMBC Nippon Life insurance Resona Bank Shinkin Central Bank Nishi-Nippon City Bank Higashi-Nippon Bank Bank of Fukuoka Mie Bank
March 20, 2015
6,000
Base interest rate (Note1)
+ 0.20%
March 21, 2017
SMBC Sumitomo Mitsui Trust Bank Nippon Life insurance Resona Bank 77 Bank Dai-ichi-life Insurance Hiroshima Bank
March 20, 2015
7,000 0.466% (Note2)
March 20, 2018
合計 14,000 ― ―
(Note 1)The base interest rate shall be the one-month tenor rate of the JBA Japanese Yen TIBOR. (Note 2)An interest rate swap agreement was concluded with Sumitomo Mitsui Trust Bank on March 20, 2015 for the purpose of hedging future interest rate fluctuation risk. Therefore, the
interest rate that is, in effect, fixed by the agreement is shown in place of the floating interest rate.
SMBC 43%
Sumitomo Mitsui Trust Bank
14%
Nippon Life Insurance
7%
Resona Bank 7%
Shinkin Central Bank 4%
Dai-ichi-Life Insurance
4%
Nishi-Nippon City Bank
4%
Higashi-Nippon Bank 4%
Bank of Fukuoka 4%
Mie Bank 4%
77 Bank 4%
Hiroshima Bank 4%
10
Total Amount 14,000 million yen
2.2 years
1.7 Years
1.1 Years
0.40% 0.40%
0.35% 0.34
0.36
0.38
0.40
0.42
0
0.5
1
1.5
2
2.5
1st FP 2nd FP 3rd FP
7.1%
42.9% 50.0% Ratio of Long Term
to Short Term
Short term Long term(current potion) Long term
50% 50% Ratio of Floating
Rate to Fixed Rate
4-2. Financial Status
Average Remaining Term to Maturity, and Average Borrowing Interest Rate (Note 2)
Changes in LTV
109,606
114,973 117,414
100,000
105,000
110,000
115,000
120,000
第1期 第2期 第3期
(years)
(yen) )
(%)
11
Floating-borrowing rate
(Note 1)Each indicator is a calculation of the figures as at the end of each fiscal period and is, in principle, rounded to the first decimal place. (Note 2)Average remaining term to maturity is rounded down to the first decimal place, and average borrowing interest rate is rounded down to two decimal places. (Note 3)NAV per unit is rounded down to the nearest whole number.
(%)
48.8 48.4
50.2
47
48
49
50
51
1st FP 2nd FP 3rd FP
Ratio of Floating Rate to Fixed Rate, and Ratio of Long Term to Short Term
Fixed-borrowing rate
Changes in NAV (Note 3)
1st FP 2nd FP 3rd FP
III. Portfolio Management Status
12
1. Properties Acquired in 3rd Fiscal Period
Property Name Bonsejour Yotsugi
Location 3-1-11, Higashiyotsugi, Katsushika-ku, Tokyo
Operator Benesse Style Care
Type Paid nursing home with care service
Number of Rooms /Resident Capacity 61 rooms/65 people
Acquisition Price 824 million yen
Appraisal Value at Time Acquisition 855 million yen
Appraisal NOI Yield (Note) 5.8%
Seller Healthcare Bridge 1-Go Godo Kaisha
Property Characteristics
・The property is located an approximate nine minute walk from Yotsugi station on the Keisei Railway Oshiage Line. There is a friendly atmosphere of downtown and a quiet residential area. The nursing occupants can feel close to Ayase River and Naka River, and together with large or small parks scattered nearby the facility, they will be able to expect rich lifestyle. ・With a lounge space and family room in the common area, consideration is given to the comfortable living for occupants.
Property Name Medical Home Bonsejour Itami
Location 1-2-25, Chuo, Itami-shi, Hyogo
Operator Benesse Style Care
Type Housing-type paid nursing home
Number of Rooms /Resident Capacity 62 rooms/64 people
Acquisition Price 514 millon yen
Appraisal Value at Time Acquisition 539 million yen
Appraisal NOI Yield (Note) 7.2%
Seller Healthcare Bridge 1-Go Godo Kaisha
Property Characteristics
・The property is located in a commercial area an approximate two minute walk from the East exit of the Hankyu Railway Itami Line terminal Itami Station. ・Nursing staff is stationed 24 hours a day.
13 (Note)Appraisal NOI yield is appraisal value at time of acquisition divided by acquisition price, rounded to the first decimal place.
Three Major metropolitan
areas
86.9%
Chubu area
5.1%
Tokyo metropolitan area
59.4%
Kinki area
22.4%
Core cities
11.6%
Other area
1.6%
2. Portfolio Highlights
By type By Geographical Area
By Operator
12.5%
Paid nursing home
87.5%
Sompo Care Next
26.5%
Benesse Style Care
21.8% Sawayaka Club
13.1%
Sompo Care Message
12.5%
AS PARTNERS
11.3%
GREEN LIFE
7.8%
JAPAN LIFE DESIGN
7.0%
Number of Properties
18 properties
(Note)The figures for By Type, By Geographical Area and By Operator are calculated on an acquisition price basis, rounded to the first decimal place.
Total Acquisition Price
25.0 billion yen
Total Appraisal Value
27.1 billion yen
Occupancy Rate
100%
Average Building Age
17.4 years
Average Remaining Lease Term
12.8 years
Number of Operators
7 companies
Unrealized Gain/Loss
+1.1 billion yen (+0.3 billion yen from previous fiscal period)
Portfolio Diversification
14
Serviced housing for the elderly
14
4
1 9
3 6
5
2
7
8 17
10
11
13
12
18
14
15
16
1 Bonsejour Chitose-funabashi
Bonsejour Musashi-shinjo
3 Bonsejour Hino 2
Medical Rehabilitation Home Bonsejour Hadanoshibusawa
4 SOMPO CARE La vie Re Machidaonoji
5 6
ASHEIM Hikarigaoka 7 ASHEIM Bunkyohakusan
8 GOOD TIME HOME Fudo-mae
9
Bonsejour Yotsugi 17
Kinki area 22.4%
Other area
1.6% 5.1%
Medical Rehabilitation Home Bonsejour Komaki
13
Chubu area
11.6%
SAWAYAKA Tachibanakan 14 SAWAYAKA Mekarikan 16 SAWAYAKA Tagawakan
15
Tokyo metropolitan area 59.4%
AQUAMARINE Nishinomiyhama
10
Medical Home Bonsejour Itami
18
11 Sompo no ie S Awajiekimae
Sompo no ie S Kobekamisawa 12
3. Portfolio Map
Strategic investment in three major metropolitan areas
86.9%
15
(Before acquisition of 2 properties: 86.1%)
Ratio of investment in three major metropolitan areas
SOMPO CARE La vie Re Azamino
Core cities
Properties acquired in 3rd Fiscal Period
Operator Name Property Name Type of Facility Location Acquisition Price(Note1) Appraisal Value
(million yen) (Note3)
Appraisal NOI (million yen)
(Note4) Price
(million yen) Ratio
(Note2)
GREEN LIFE AQUAMARINE Nishinomiyahama Paid nursing home with care service
Nishinomiya-shi, Hyogo 1,950 7.8 2,160 121
Benesse Style Care
Bonsejour Chitose-funabashi Paid nursing home with care service
Setagaya-ku, Tokyo 824 3.3 958 49
Bonsejour Hino Paid nursing home with care service
Hino-shi, Tokyo 724 2.9 806 43
Bonsejour Musashishinjo Paid nursing home with care service
Kawasaki-shi, Tokyo 582 2.3 633 36
Medical Rehabilitation Home Bonsejour Hadanoshibusawa
Paid nursing home with care service
Hadano-shi, Kanagawa 728 2.9 838 47
Medical Rehabilitation Home Bonsejour Komaki Housing-type paid nursing home Komaki-shi,
Aichi 1,270 5.1 1,430 92
Bonsejour Yotsugi Paid nursing home with care service
Katsushika-ku, Tokyo 824 3.3 872 48
Medical Bonsejour Itami Housing-type paid nursing home Itami-shi, Hyogo 514 2.1 550 36
AS PARTNERS ASHEIM Higarigaoka Paid nursing home with care
service Nerima-ku, Tokyo 1,385 5.5 1,540 76
ASHEIM Bunkyohakusan Paid nursing home with care service
Bunkyo-ku, Tokyo 1,430 5.7 1,590 72
Sompo Care Next
SOMPO CARE La vie Re Machidaonoji
Paid nursing home with care service
Machida-shi, Tokyo 3,580 14.3 3,750 192
SOMPO CARE La vie Re Azaminio
Paid nursing home with care service
Yokohama-shi, Kanagawa 3,050 12.2 3,210 156
Sawayaka Club
SAWAYAKA Tachibanakan Paid nursing home with care service
Fukuoka-shi, Fukuoka 1,520 6.1 1,580 95
SAWAYAKA Mekarikan Paid nursing home with care service
Kitakyushu-shi, Fukuoka 1,380 5.5 1,460 87
SAWAYAKA Tagawakan Paid nursing home with care service
Tagawa-shi, Fukuoka 390 1.6 410 25
JAPAN LIFE DESIGN GOOD TIME HOME Fudo-mae Paid nursing home with care service
Shinagawa-ku, Tokyo 1,740 7.0 1,910 92
Sompo Care Message (Note5)
Sompo no ie S Awajiekimae Serviced housing for the elderly Osaka-shi, Osaka 1,930 7.7 2,130 116
Sompo no ie S Kobekamisawa Serviced housing for the elderly Kobe-shi, Hyogo 1,200 4.8 1,320 72
Total 25,021 100.0 27,147 1,463
(Note 1)Acquisition price does not include acquisition expenses, consumption tax, etc. (Note 2)“Ratio” is calculated on an acquisition price basis, rounded to the first decimal place. (Note 3)“Appraisal Value” is the value with July 31, 2016 as the date of value. (Note 4)“Appraisal NOI” is rounded down to the nearest million yen. (Note 5)Message Co., Ltd. became a consolidated subsidiary of Sompo Japan Nipponkoa Holdings, Inc. on March 7, 2016 and changed its company name to Sompo Care Message Inc. on July 1, 2016. Sompo Japan Nipponkoa Holdings, Inc. changed its company name to Sompo Holdings, Inc. on October 1, 2016. The same shall apply hereinafter in this document.
4-1. Portfolio List
Properties acquired in 3rd Fiscal Period
16
Property Name Number of Rooms (rooms)
Resident Capacity (people)
Occupancy Rate (%)
Date of Figures Source
AQUAMARINE Nishinomiyahama 90 100 97.0 June 2016 Disclosure statement Bonsejour Chitose-funabashi 42 47 92.9 Jan.2016 Independent survey (Note 1) Bonsejour Hino 56 58 89.3 Jan.2016 Independent survey (Note 1) Bonsejour Musashishinjo 46 49 89.1 Jan.2016 Independent survey (Note 1) Medical Rehabilitation Home Bonsejour Hadanoshibusawa 100 101 88.0 Jan.2016 Independent survey (Note 1) Medical Rehabilitation Home Bonsejour Komaki 123 166 92.7 Jan.2016 Independent survey (Note 1)
Bonsejour Yotsugi 61 65 93.4 Jan.2016 Independent survey (Note 1) Medical Bonsejour Itami 62 64 95.2 Jan.2016 Independent survey (Note 1) ASHEIM Higarigaoka 83 89 95.5 July 2016 Disclosure statement ASHEIM Bunkyohakusan 50 52 88.5 July 2016 Disclosure statement SOMPO CARE La vie Re Machidaonoji 163 169 65.1 July 2016 Disclosure statement SOMPO CARE La vie Re Azaminio 145 145 65.5 July 2016 Disclosure statement
SAWAYAKA Tachibanakan 104 104 97.1 July 2016 Disclosure statement SAWAYAKA Mekarikan 95 95 97.9 July 2016 Disclosure statement SAWAYAKA Tagawakan 60 60 96.7 July 2016 Disclosure statement GOOD TIME HOME Fudo-mae 61 67 88.1 July 2016 Disclosure statement Sompo no ie S Awajiekimae 137 137 94.2 - Property website (Note 3) Sompo no ie S Kobekamisawa 85 85 76.5 - Property website (Note 3)
合計 1,563 1,653
Occupancy Rate By Property
4-2. Portfolio List
Properties acquired in 3rd Fiscal Period
17
(Note 1)The occupancy rate is the occupancy rate based on a survey conducted by Tamura Planning & Operating Co., Ltd. (hereinafter referred to as “Tamura Planning”). Calculation of the occupancy rate by Tamura Planning is based on number of rooms, while calculation of the occupancy rate in the Property Disclosure Statement of Important Issues is on a resident capacity basis. Accordingly, the Property Disclosure Statement of Important Issues and actual figures may differ. (Note 2)The number of rooms as serviced housing for the elderly is 136 rooms. The same shall apply hereinafter in this document. (Note 3)The occupancy rate is the occupancy rate estimated by the asset management company based on the number of rooms as at the end of July 2016 disclosed on the property website. Accordingly, it may differ from the actual occupancy rate.
Operator Name Founded
Number of Facilities under Management (Note 1)
Public Listing Remarks
Benesse Style Care Co., Ltd. Sept.1995 295 Consolidated subsidiary of Benesse Holdings,
Inc., which is listed on the TSE First Section
The company operates seven brands in Tokyo, Osaka, Nagoya, and elsewhere in Japan. The brands are mainly mid- to high-end, such as Bonsejour and GRANDA.
Sompo Care Next Inc. Nov. 1992 116 Consolidated subsidiary of Sompo Holdings,
Inc., which is listed on the TSE First Section
The company mainly operates paid nursing homes with care service for the elderly under the Sompo Care La vie Re brand, mainly in the Greater Tokyo Area. Formerly, Watami No Kaigo Co., Ltd.
GREEN LIFE Inc. May 1994 24 Consolidated subsidiary of SHIP HEALTHCARE HOLDINGS, INC., which is listed on the TSE First Section
The company is a company engaged in the nursing care business that undertakes the Lifecare Business of SHIP HEALTHCARE HOLDINGS, INC. (all 67 facilities) together with GREEN LIFE HIGASHI NIHON Inc. and other companies.
Sawayaka Club Co., Ltd. Dec. 2004 67
Consolidated subsidiary of UCHIYAMA HOLDINGS Co., Ltd., which is listed on the TSE First Section
The company operates low-price facilities with no upfront entrance fees under the SAWAYAKA brand in Fukuoka Prefecture and elsewhere in Japan.
AS PARTNERS Co., Ltd. Nov. 2004 14 Not publicly listed The company operates paid nursing homes and day service facilities
under the ASHEIM brand in the Greater Tokyo Area.
JAPAN LIFEDESIGN Inc. Apr. 2004 3 Not publicly listed
The company operates paid nursing homes under the GOOD TIME HOME brand in Tokyo. Including the facilities of SOUSEI JIGYOUDAN Co., Ltd., the parent company, the company operates 31 facilities. (Note 2)
Sompo Care Message Inc. May 1997 334
・Listed on the TSE JASDAQ Market ・Consolidated subsidiary of Sompo Holdings, Inc., which is listed on the TSE First Section
The company operates mid- to low-end paid nursing homes under the Sompo no ie brand and serviced housing for the elderly under the Sompo no ie S brand, mainly in Tokyo, Osaka, Nagoya, and also elsewhere in Japan. Formerly, Message Co., Ltd.
5. Operator List
18
(Note 1)“Number of Facilities under Management” is obtained from the kessan tanshin (financial report) for the first quarter of fiscal year ending March 2017 of Benesse Holdings, Inc. in the case of Benesse Style Care Co., Ltd., and each company’s website (as at the end of July 2016) in the case of Sompo Care Next Inc., GREEN LIFE Co., Ltd., Sawayaka Club Co., Ltd., AS PARTNERS Co., Ltd., JAPAN LIFEDESIGN Inc. and Sompo Care Message Inc. (Note 2)The number of facilities of SOUSEI JIGYOUDAN Co., Ltd. is obtained from its website (as at the end of July 2016).
IV. External Growth Strategy
19
1. Road Map to External Growth
Further expansion of
asset size
(March 2015)
(March 2016)
50.0 billion yen
IPO 1year later 3 year later 5 year later
100.0 billion yen
Medium-Term Target Asset Size
23.6 billion yen
(Note 1)The targets announced in the financial results briefing materials dated March 16, 2016. Future events, market environment, etc. may lead to these not being achieved. (Note 2)The properties acquired by sponsor-arranged bridge SPCs (HC Vega and HC Altair). These are not assets that HCM has decided to acquire and there is also no guarantee that HCM will be able to acquire these in the future. (Note 3)The appraisal values as at the end of August 2014 obtained by the bridge SPCs.
20
Aim for 50 billion yen in 3 years after the IPO and 100 billion yen in 5 years after the IPO (Note 1)
Acquired Bonsejour Yotsugi Medical Home Bonsejour Itami
First refusal rights obtained (Note 2)
14 properties / Approx. 33.6 billion yen (Note 3)
25.0 billion yen
(Note 1)“Operator” is the main tenant. (Note 2)The properties for which first refusal rights have been obtained are not assets that HCM has decided to acquire and there is also no guarantee that HCM will be able to acquire these in the future.
2. Pipeline Status
21
Properties Held by Bridge SPCs (First Refusal Rights Obtained)
Property name SHIP Senri Building Kobe Gakuentoshi Building GRANDA Tsuruma Yamato
Operator (Note1) GREEN LIFE GREEN LIFE Benesse Style Care
Location Toyonaka-shi, Osaka Kobe-shi, Hyogo Yamato-shi, Kanagawa
Major Facilities Paid nursing home with care service
Hospital Paid nursing home with care service
Clinic Paid nursing home with care service
Property Name Operator Location Type of Facility
Moriguchisata Lagale GREENLIFE Moriguchi-shi, Osaka Paid nursing home with care service
Hapine Kobe Uozaki Ⅱ GREENLIFE Kobe-shi, Hyogo Paid nursing home with care service
SOMPO CARE La vie Re Hama-Kawasaki Sompo Care Next Kawasaki-shi, Kanagawa Paid nursing home with care service
Hanakotoba Shin-Yokohama Yuuai Yokohama-shi, Kanagawa Paid nursing home with care service
Hanakotoba Shin-Yokohama Ⅱ Yuuai Yokohama-shi, Kanagawa Paid nursing home with care service
Hanakotoba Miura Manyou Miura-shi, Kanagawa Paid nursing home with care service
Hanakotoba Odawara Manyou Odawara-shi,Kanagawa Paid nursing home with care service
Hanakotoba Minami Manyou Yokohama-shi, Kanagawa Paid nursing home with care service
LONGLIFE Kobe Aotani JAPAN LONGLIFE Kobe-shi, Hyogo Paid nursing home with care service
Verge Minowa Verge Takasaki-shi, Gunma Paid nursing home with care service
Verge Hotaka Verge Kawaba-mura, Tone-gun, Gunma Paid nursing home with care service
3. Action Strategy
Build Structure Pooling Quality Properties and Information by Utilizing Extensive Networks
Utilization of warehousing function and first refusal rights
22 (Note)HAM stands for Healthcare Asset Management Co., Ltd.
Asset management company’s (HAM’s)own network Sponsors’ and supporting companies’ networks
Facilities and housing for the elderly
(properties in operation)
Facilities and housing for the elderly
(after new development/construction)
Medical service-related facilities
Case Examples of Actions for Expansion of Asset Size
Captured the needs for new development of paid nursing homes of operator A.
Partnered with operator A and developer. Held (warehousing) by sponsor B after completion of construction for the period until occupancy becomes stable.
The asset management company captured the operator’s paid nursing home (extension underway) liquidity needs. Acquired (warehousing) by sponsor C after completion of construction of the extension.
4. Action Case Examples
Case Example 1: Development Property
Case Example 2: Property in Operation
H
CM
23
Lease agreement
Case Example 3: Property in Operation
Operator A
Facility development
Developer
Sponsor B
First refusal rights to be obtained
Paid nursing home held by leading regional medical corporation acquired (warehousing) by sponsor D. Acquisition of hospital real estate held by the medical corporation also under consideration.
Ⅴ Appendix
24
163 184
209 244
281 313
347 377
31 32
32 33
34 34
34 34
0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2% 0.2%
1.3% 1.4%
1.5% 1.7%
1.9% 2.0%
2.2% 2.3%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
0
50
100
150
200
250
300
350
400
450
2008 2009 2010 2011 2012 2013 2014 2015
Room for people that need nursing careRoom for independent residentsSupply rate of room for independent residents (among population of 75 years-old or older)
Supply rate of room for people that need nursing care (among population of 75 years-old or older)
112
2,772
4,205
5,160 5,543
5,885
3,448
82,809
130,447
161,517 178,173
187,170
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
2011 2012 2013 2014 Jun-15 Dec-15
Number ofrooms
(Rooms)
1. Environment Surrounding Healthcare Facilities (Facilities and Housing for the Elderly)
25
Paid nursing home/for peoplethat need nursing carePaid nursing home/forindependent residentsServiced housing for the elderly
Group home
Three types of long-term careinsurance facilities (Note)
Estimated Sales
23%
2%
7%
12% 56%
Market Size of Facilities and Housing for the Elderly (estimated in December 2015)
6,412.3 billion yen
Paid nursing home/for peoplethat need nursing carePaid nursing home/forindependent residentsServiced housing for theelderlyGroup home
Three types of long-term care
insurance facilities (Note)
1,779 thousand rooms
Registration Status of Serviced Housing for the Elderly
21%
2%
10%
11% 56%
Number of Rooms
Supply Status and Supply Rate of Paid Nursing Home
(thousand room)
Source: Prepared by the asset management company based on “Registration Status of Serviced Housing for the Elderly” by the Ministry of Land, Infrastructure, Transport and Tourism and KPMG’s materials.
(Note) This refers to Facilities Covered by Public Aid Providing Long-Term Care to the Elderly (intensive care homes for the elderly), Long-Term Care Health Facilities ( nursing and health facilities for the elderly) and Sanatorium Medical Facilities for the Elderly Requiring Long-Term Care.
(building)
2-1. Environment Surrounding Healthcare Facilities (Medical Service-Related Facilities)
About Regional Healthcare Vision
Medical institutions
Prefecture governm
ent
It is decided that prefectural governments must establish “Regional Healthcare Vision” for each secondary medical area by March 2018 due to the enactment of “Act for Securing Comprehensive Medical and Long-term Care in the Community” in the 2014 ordinary Diet session. • “Regional Healthcare Vision” is to estimate and stipulate medical demand and required number of beds in 2025 for each medical function in order to promote functional differentiation and
coordination of hospital beds to prepare for 2025. • Ministry of Health, Labor and Welfare established “Guideline” that stipulates estimating methods in March 2015 for prefectural governments to start formulating “Regional Healthcare Vision.”
26
(Functions of respective hospital is not clear)
Select medical function voluntarily
(Hospital Ward A) Advanced acute stage function
(Hospital Ward B) Acute stage function
(Hospital Ward C) Recovery stage function
(Hospital Ward D) Chronic stage function
Report current status and future direction of
medical functions
Establish “Regional Healthcare Vision” by utilizing reports on medical functions, etc. and promote further functional differentiation
(Content of “Regional Healthcare Vision”) 1. Medical demand and required number of hospital beds in 2025 ・Estimate for each of the four functions, which are advanced acute stage, acute stage, recovery stage and chronic stage ・Estimate for each area of the vision within prefecture (in principal, secondary medical area) 2. Measures to realize medical provision system to aim for. (Example) Preparation of facilities, securing and training of medical staff, etc. to promote differentiation and coordination of medical functions.
Differentiation and coordination of functions to be discussed and adjusted at “Regional Healthcare Vision Coordination Council”
Source: “Regional Healthcare Vision” by the Ministry of Health, Labor and Welfare
2-2. Environment Surrounding Healthcare Facilities (Medical Service-Related Facilities)
Case of Tokyo
357,569 beds
210,566 beds
One for ten
26,926 beds
One For
thirteen
54,301 beds
One For
fifteen
216,653 beds
41.3%
24.3%
3.1%
6.3%
25.0%
47,338 beds
14,793 beds
3,431 beds
3,931 beds
13,998 beds
56.7%
17.7%
4.1%
4.7%
16.8%
13.7%
19.8%
26.7%
21.4%
13,140 beds
25,549 beds
18,979 beds
20,439 beds
17,519 beds
Current picture Image of reform which national government sets for 2025
<Nationwide> <Tokyo>
Hospital’s general wards
27
Advanced acute stage 180,000 beds
General acute stage Approx. 350,000 beds
Subacute stage, etc. Approx. 260,000 beds
Long-term recuperation 280,000 beds 18.3%
One for
Seven
Hospital’s recuperation wards
*Excluding 1,301 beds under provisional measures
*Excluding 23,022 beds under provisional measures 240,000 com
munity-based hospital beds
<Nationwide> <Tokyo>
Source: “Issues in Establishing and Realizing Regional Healthcare Vision” by the Bureau of Social Welfare and Public Health, Tokyo Metropolitan Government
Property Name
AQUAMARINE Nishinomiyahama
Bonsejour Chitose-funabashi Bonsejour Hino Bonsejour
Musashi-shinjo
Medical Rehabilitation Home Bonsejour
Hadanoshibusawa
Medical Rehabilitation Home Bonsejour Komaki
Location 4-15-2, Nishinomiyahama, Nishinomiya-shi, Hyogo
1-37-3, Funabashi, Setagaya-ku, Tokyo
438-1, Ochikawa, Hino-shi, Tokyo
773-2, Chitose, Takatsu-ku, Kawasaki-shi, Kanagawa
1-6-60, Shibusawakami, Hadano-shi, Kanagawa 3-1, Shiroyama, Komaki-shi, Aichi
Nearest Station Nishinomiya Station on Hanshin Main Line
Chitose-funabashi Station on Odakyu Odawara Line Mogusaen Station on Keio Line Musashi-Shinjo Station on JR
Nambu Line Shibusawa Station on Odakyu Odawara Line
Ajioka Station on Meitetsu Komaki Line Jinryo Station on JR Chuo Main Line
Construction Completion May 2007 March 1988 May 1990 February 1985 July 1991 March 1991
Site area 2,587.93 ㎡ 1,020.92㎡ 2,211.28 ㎡ 1,233.49 ㎡ 2,588.04 ㎡ 8,229.85 ㎡
Leasable area 5,157.26 ㎡ 2,342.17 ㎡ 1,984.17 ㎡ 1,710.43 ㎡ 3,435.79 ㎡ 8,858.49 ㎡
Type Paid nursing home with care service
Paid nursing home with care service
Paid nursing home with care service
Paid nursing home with care service
Paid nursing home with care service Housing type paid nursing home
Structure /No. of floor
(Note1) RC,5F RC, B1F/6F RC, 3F RC, 4F RC, 5F SRC/RC/S, 10F
No. of Rooms /Resident Capacity 90 rooms, 100 people 42 rooms, 47 people 56 rooms, 58 people 46 rooms, 49 people 100 rooms, 101 people 123 rooms, 166 people
Operator GREEN LIFE Benesse style Care Benesse style Care Benesse style Care Benesse style Care Benesse style Care Remaining years of
lease agreement (Note 2)
21 years 10 years 10 years 10 years 11 years 11 years
Appraisal NOI (Note 2) 121 million yen 49 million yen 43 million yen 36 million yen 47 million yen 92 million yen
Cap Rate (Note 2) 5.4% 4.5% 4.9% 5.2% 5.1% 5.6%
Appraisal Value (Note 2) 2,160 million yen 958 million yen 806 million yen 633 million yen 838 million yen 1,430 million yen
Acquisition Price 1,950 million yen 824 million yen 724 million yen 582 mullion yen 728 million yen 1,270 million yen
3-1. Detailed Portfolio List
28 (Note 1) As for abbreviation used in Structure column, SRC refers to steel-reinforced concrete, RC refers to reinforced concrete and S refers to steel structure. (Note 2) Figures in Remaining years of lease agreement, Appraisal NOI, Cap Rate and Appraisal Value are as of July 31, 2016.
Property Name ASHEIM Hikarigaoka ASHEIM Bunkyohakusan Sompo CARE La vie Re
Machidaonoji Sompo Care La vie Re
Azamino SAWAYAKA
Tachibanakan SAWAYAKA Mekarikan
Location 4-3-23, Yahara, Nerima-ku, Tokyo 4-36-13, Hakusan, Bunkyo-ku, Tokyo
1612, Onojimachi, Machida-shi, Tokyo
19-24, Ayumigaoka, Tsuzuki-ku, Yokohama-shi, Kanagawa
173-15, Oaza Ryugeji, Hakata-ku, Fukuoka-shi, Fukuoka
1-9-15, Okubo, Moji-ku, Kitakyushu-shi, Fukuoka
Nearest Station Shakujii-koen Station on Seibu Ikebukuro Line
Hakusan Station on Toei Subway Mita Line
Keio Nagayama Station on Keio Sagamihara Line Odakyu Nagayama Station on Odakyu Tama Line
Nakagawa Station on Yokohama Municipal Subway Blue Line
Sasahara Station on JR Kagoshima Honsen Line
Mojiko Station on JR Kagoshima Honsen Line
Construction Completion March 2006 February 2007 October 2007 March 2004 October 2005 November 2005
Site area 2,868.46 ㎡ 540.29 ㎡ 7,404.13 ㎡ 2,748.64 ㎡ 3,359.66 ㎡ 3,758.26 ㎡
Leasable area 3,628.60 ㎡ 2,494.78 ㎡ 7,720.17 ㎡ 5,789.25 ㎡ 5,652.94 ㎡ 4,720.46 ㎡
Type Paid nursing home with care service
Paid nursing home with care service
Paid nursing home with care service
Paid nursing home with care service
Paid nursing home with care service
Paid nursing home with care service
Structure /No. of floor
(Note1) RC, 3F RC, 8F RC, B1F/6F RC, BC1F/5F RC, BC1F/6F RC, 4F
No. of Rooms /Resident Capacity 83 rooms, 89 people 50 rooms, 52people 163 rooms, 169 people 145 rooms, 145 people 104 rooms, 104 people 95 rooms, 95 people
Operator AS PARTNERS AS PARTNERS Sompo Care Next Sompo Care Next Sawayaka Club Sawayaka Club
Remaining years of lease agreement
(Note 2) 18 years 11years 11years 11years 12 years 12 years
Appraisal NOI (Note 2) 76 million yen 72 million yen 192 million yen 156 million yen 95 million yen 87 million yen
Cap Rate (Note 2) 4.9% 4.5% 5.0% 4.7% 5.6% 5.7%
Appraisal Value (Note 2) 1,540 million yen 1,590 million yen 3,750 million yen 3,210 million yen 1,580 million yen 1,460 million yen
Acquisition Price 1,385 million yen 1,430 million yen 3,580 million yen 3,050 million yen 1,520 million yen 1,380 million yen
3-2. Detailed Portfolio List
29 (Note 1) As for abbreviation used in Structure column, SRC refers to steel-reinforced concrete, RC refers to reinforced concrete and S refers to steel structure. (Note 2) Figures in Remaining years of lease agreement, Appraisal NOI, Cap Rate and Appraisal Value are as of July 31, 2016.
Property Name
SAWAYAKA Tagawakan
GOOD TIME HOME Fudo-mae
Sompo no ie S Awajiekimae
Sompo no ie S Kobekamisawa Bonsejour Yotsugi Medical home
Bonsejour Itami
Location 393-1, Oaza Ita, Tagawa-shi, Fukuoka
5-25-13, Nishigotanda, Shinagawa-ku, Tokyo
3-20-26, Awaji, Higashiyodogawa-ku, Osaka-shi,
Osaka
8-2-5, Kamisawadori, Hyogo-ku, Kobe-shi, Hyogo
3-1-11, Higashiyotsugi, Katsushika-ku, Tokyo 1-2-25, Chuo, Itami shi, Hyogo
Nearest Station Tagawa Ita Station on JR Hita Hikosan Line
Fudo-mae Station on Tokyu Meguro Line
Awaji Station on Hankyu Railway Kyoto Line
Kamisawa Station on Kobe Municipal Subway Seishin-Yamate Line
Yotsugi Station on Keisei Railway Oshiage Line
Itami Station on Hankyu Railway Itami Line
Construction Completion January 2006 March 1992 June 2009 June 2009 March 1989 March 1989
Site area 4,300.90 ㎡ 1,206.60 ㎡ 1,251.26 ㎡ 743.22 ㎡ 1,136.46㎡ 1,976.11㎡
Leasable area 2,366.20 ㎡ 3,400.20 ㎡ 5,658.53 ㎡ 3,626.25 ㎡ 1,962.89㎡ 2,129.87㎡
Type Paid nursing home with care service
Paid nursing home with care service Serviced housing for the elderly Serviced housing for the elderly Paid nursing home
with care service Housing type paid nursing
home Structure
/No. of floor (Note1)
RC, 3F RC, BC1F/5F RC, 12F S, 9F RC, 5F SRC, 11F
No. of Rooms /Resident Capacity 60 rooms, 60 people 61 rooms, 67 people 137 rooms, 137 people 85 rooms, 85 people 61 rooms, 65 people 62 rooms, 64 people
Operator Sawayaka Club JAPAN LIFE DESIGN Sompo Care Message Sompo Care Message Benesse Style Care Benesse Style Care
Remaining years of lease agreement
(Note 2) 12years 10 years 18 years 18 years 9 years 11 years
Appraisal NOI (Note 2) 25 million yen 92 million yen 116 million yen 72 million yen 48 million yen 36 million yen
Cap Rate (Note 2) 5.8% 4.5% 5.3% 5.3% 4.8% 5.2%
Appraisal Value (Note 2) 410 million yen 1,910 million yen 2,130 million yen 1,320 million yen 872 million yen 550 million yen
Acquisition Price 390 million yen 1,740 million yen 1,930 million yen 1,200 million yen 824 million yen 514 million yen
3-3. Detailed Portfolio List
30 (Note 1) As for abbreviation used in Structure column, SRC refers to steel-reinforced concrete, RC refers to reinforced concrete and S refers to steel structure. (Note 2) Figures in Remaining years of lease agreement, Appraisal NOI, Cap Rate and Appraisal Value are as of July 31, 2016.
4-1. Overview of Operators
GREEN LIFE Co., Ltd Headquarters location 3-20-8, Kasuga, Suita-shi, Osaka
Representative Representative Director and President Keiji Arai
Founded May 1994
Capital stock 50 million yen
Listed or unlisted Unlisted
Parent company SHIP HEALTHCARE HOLDINGS, INC (TSE 1st Section, Code No. 3360)
Benesse Style Care Co., Ltd. Headquarters location
Shinjuku Monolith Building 5th floor, 2-3-1, Nishi-Shinjuku, Shinjuku-ku, Tokyo
Representative Representative Director and President Shinya Takiyama
Founded September 1995
Capital stock 100 million yen
Listed or unlisted Unlisted
Parent company Benesse Holdings, Inc. (TSE 1st Section, Code No. 9783)
AS PARTNERS Co., Ltd. Headquarters location Toho Twin Bldg. 6F, 1-5-2, yurakucho, Chiyoda-ku, Tokyo
Representative Representative Director and President Takeshi Uemura
Founded November 2004
Capital stock 40 million yen
Listed or unlisted Unlisted
JAPAN LIFE DESIGN Inc. Headquarters location
Akasaka Enoki-zaka Mori Building 6th floor, 1-7-1, Akasaka, Minato-ku, Tokyo
Representative Representative Director and President Shoetsu Ito Founded April 2004 Capital stock 100 million yen Listed or unlisted Unlisted Headquarters location SOUSEI JIGYODAN CO., Ltd.
31
GREEN LIFE Co., Ltd. considers its nursing homes “an extension of the family,” and where residents can enjoy a peaceful, safe, and comfortable lifestyle. As a company engaged in long-term care business under SHIP HEALTHCARE HOLDINGS, INC. and group of companies including GREEN LIFE HIGASHI NIHON Inc., GREEN LIFE Co., Ltd. operates facilities nationwide.
Benesse Style Care Co., Ltd. operates seven brands in Tokyo, Osaka, Nagoya, and elsewhere in Japan. The brands are mainly mid- to high-end, such as Bonsejour and GRANDA, thus allowing residents to select “a lifestyle that suits them.”
AS PARTNERS Co., Ltd. operates paid nursing homes and day service facilities under the ASHEIM brand in the Greater Tokyo Area, based on the philosophy of “a rich life in your own way, with your own strength until the end.”
JAPAN LIFEDESIGN Inc. operates paid nursing homes under the GOOD TIME HOME brand in Tokyo. Including the facilities of the parent company SOUSEI JIGYOUDAN CO., Ltd. and its subsidiaries, JAPAN LIFEDESIGN Inc. operates 31 facilities (resident capacity of 2,305 people).
4-2. Overview of Operators
Sompo Care Next Inc. Headquarters location
Shinagawa Seaside east tower 12th floor, 4-12-8, Higashishinagawa, Sinagawa-ku, Tokyo
Representative President and Chief Executive Officer Ken Endo
Founded November 1992
Capital stock 5,095 million yen
Listed or unlisted Unlisted
Parent company Sompo Holdings, Inc. (TSE 1st Section, Code No. 8630)
SAWAYAKA Club., Ltd. Headquarters location 2-10-10, Kumamoto, Kokurakita-ku, Kitakyushu-shi, Fukuoka
Representative Representative Director and President Bunji Uchiyama
Founded December 2004
Capital stock 200.8 million yen
Listed or unlisted Unlisted
Parent company UCHIYAMA HOLDINGS Co., Ltd. (TSE 1st Section, Code No. 6059)
Sompo Care Message Inc. Headquarters location 522-1, Nishiichi, Minami-ku, Okayama-shi, Okayama
Representative President and Chief Executive Officer Tetsuya Kikui
Founded May 1997
Capital stock 3,925 million yen
Listed or unlisted Listed on TSE JASDAQ (Code No. 2400)
Parent company Sompo Holdings, Inc. (TSE 1st Section, Code No. 8630)
32
Sompo Care Next Inc. mainly operates paid nursing homes with service under the Sompo Care La vie Re brand and other brands, mainly in the Greater Tokyo Area, under the concept that “homes exist solely for the happiness of their residents.
Sawayaka Club Co., Ltd. operates low-price facilities with no upfront entrance fees under the SAWAYAKA brand, in Fukuoka Prefecture and elsewhere in Japan, based on the belief in repaying older generations that gave their all for the development of Japan.
Sompo Care Message Inc. aims to offer an environment where the elderly can continue living in the area they are used to, even once they require nursing care. Sompo Care Message Inc. operates mid- to low-end facilities under the Sompo no ie and Sompo no ie S brands mainly in Tokyo, Osaka, Nagoya, and also elsewhere in Japan.
Individuals, etc.
97%
Financial institutions
1%
Domestic
companies
2%
Foreign companies /individuals
0%
Name Number of
investment units owned(units)
Ownership ratio (%) (Note)
Japan Trustee Services Bank Ltd. (Trust Account) 10,532 8.74 Trust & Custody Services Bank Ltd. (Securities Investment Trust Account) 7,002 5.81
NEC Capital Solutions Limited 4,000 3.31
SHIP HEALTHCARE HOLDINGS INC. 4,000 3.31
Sumitomo Mitsui Banking Corporation 4,000 3.31 The Master Trust Bank of Japan, Ltd. (Trust Account) 3,786 3.14 The Nomura Trust and Banking Co., Ltd. (Investment Trust Account) 3,083 2.55
Meiji Yasuda Life Insurance 1,322 1.09 STATE STREET BANK AND TRUST COMPANY 505001 1,050 0.87
Numazu Shinkin Bank 1,000 0.82
Yonezawa Shinkin Bank 1,000 0.82
Total 40,775 33.83
5. Status of Unitholders
Individuals, etc. 49%
Financial institutions
36%
Domestic Companies
12%
Foreign companies /individuals
3%
By number of Owned Units
By Number of Unitholders List of Top Unitholders (as of the end of July 2016)
33 (Note) Ownership ratio is rounded down to the second decimal place.
6. Overview of Unitholder Special Benefit Plan
Details of Special Benefits
・Free trial move-in (two-day and one-night with meals) ・Tour with free lunch
Sompo Care Next inc.内
GREEN LIFE Co., Ltd.
Details of Special Benefits
・Discount advance payment or monthly fee ・Tour with free lunch
Details of Special Benefits
・Free trial move-in (two-day and one-night with meals) ・Discount upfront entrance fees
JAPAN LIFE DESIGN Inc.
・Discount upfront entrance fees ・Discount monthly fee (discount management fees) ・Free trial move-in (four-day and three-night) ・Tour with free lunch
AS PARTNERS co., Ltd.
Details of Special Benefits
Sawayaka Club Co., Ltd.
Details of Special Benefits
・Free consultation on nursing care
Benesse Senior Support Co., Ltd
(Note) Details of special benefits are for people who are unitholders as of the end of 3rd fiscal period and are subject to change.
34
・Discount monthly fee for initial month ・Free trial move-in (two-day and one-night with meals) ・Tour with free lunch
Details of Special Benefits
0
200
400
600
800
1,000
1,200
1,400
1,600
90,000
95,000
100,000
105,000
110,000
115,000
2/1/16 3/1/16 4/1/16 5/1/16 6/1/16 7/1/16
Trade volume of HCM HCM TSE REIT Index
Unit Price, TSE REIT Index and Trade Volume
(Yen) (Unit)
(figure relative to HCM’s unit price)
7. Information related to Investment Units
35
Accounting Auditor
PricewaterhouseCoopers Aarata LLC
Asset Management
・Provide professional know-how ・Provide human resources ・Provide property information, etc.
Sponsor
Sponsor Support Agreement
SMBC Trust Bank RISA Partners Orion, etc.
Pipeline Support Agreement
8. HCM’s Network
Asset Custody Company Administrative Agent Administrator of the Investors’ Registry
Sumitomo Mitsui Trust Bank
36
Asset Management Company
Sumitomo Mitsui Finance and Leasing SMBC Friend Securities Ginsen
Muromachi Building Yoei Kobe Tochi Tatemono
Trade name Healthcare Asset Management Co., Ltd.
Location 3-3 Kanda-Ogawamachi, Chiyoda-ku, Tokyo
Founded November 28, 2013
Capital stock 150 million yen
President and Representative Seiji Yoshioka
Major shareholders
SHIP HEALTHCARE HOLDINGS, INC. (33.3%) NEC Capital Solutions Limited (33.3%) Sumitomo Mitsui Banking Corporation (5.0%) Sumitomo Mitsui Finance and Leasing Company, Limited (4.8%) SMBC Friend Securities Co., Ltd. (4.8%)
Registration, license, etc.
Registered as a financial service provider (Director of Kanto Local Finance Bureau (Kinsho) No. 2815)
License as a building lots and buildings business operator (Governor of Tokyo (1) No. 96339)
License as an entrusted agency services for transactions (Minister of Land, Infrastructure, Transport and Tourism No. 85)
General Meeting of Shareholders
Board of Directors
Representative Director
Asset Management Department Investment Department Financial & Administration Department
Audit & Supervisory Board Member
Management Committee Compliance Committee
9. Profile of Asset Management Company
37
Internal Audit Office Compliance Office
With a stated mission to “create an environment of people protecting life,” SHIP HEALTHCARE HOLDINGS, INC. carries out a wide-range of nursing care and medical service-related businesses in four domains on a group basis: the Lifecare Business, in which it operates paid nursing homes; the Total Pack Produce Business, in which it offers comprehensive, optimal solution services to meet the needs for hospital launch/relocation and building extension/renovation of medical institutions; the Medical Supplies Business, in which it sells medical supplies and other products; as well as the Dispensing Pharmacy Business.
Sumitomo Mitsui Banking Headquarters location 1-1-2 Marunouchi, Chiyoda-ku, Tokyo
Representative President Takeshi Kunibe
Capital stock 1,770.9 billion yen
NEC Capital Solutions Headquarters location 2-15-3 Konan, Minato-ku, Tokyo
Representative President Masahiro Annaka
Founded November 1978
Capital stock 3,776.88 million yen
Sales 202.6 billion yen when consolidated (fiscal period ended March 2016)
SHIP HEALTHCARE HOLDINGS, INC. Headquarters location 3-20-8 Kasuga, Suita-shi, Osaka
Representative Chairman and CEO Kunihisa Furukawa President and COO Hirotaka Ogawa
Founded August 1992
Capital stock 15,553.01 million yen
Sales 306.8 billion yen when consolidated (fiscal period ended March 2016)
As NEC Group’s comprehensive financial services company, in addition to its mainstay leasing business and ICT-related service business, NEC Capital Solutions Limited is engaged in investments, loans, and advisory services in the business domains of “companies,” “credits,” and “assets,” through RISA Partners, Inc., its subsidiary which has a track record in the fund business, etc.
As the core company of the Sumitomo Mitsui Financial Group, it possesses one of the strongest sales foundations in Japan, has an ability to execute strategies quickly, and is capable of providing financial services through its influential group companies.
10. Profile of Major Sponsors
38
Disclaimer This presentation material contains forward-looking statements including forecasts, outlooks, goals and plans. These statements are based on the information available as of the date when this material is prepared and incorporate certain subjective assumptions about uncertain factors that may affect future results. Accordingly, these statements are inherently not guarantees of future performance and actual results may differ materially. The opinions, outlooks and estimates contained in this material reflect our view and judgment based on information as of the date when this material is prepared and involve risks and uncertainties. No guarantee is made as to the accuracy, completeness, appropriateness and validity of information contained in this material. It is not promised that information contained in this material will always be updated. Contents of this material are subject to change without notice. This material is not intended as a solicitation for investment. Any investment decision must be made based on your own judgment and responsibility.
39