Sekisui House Reit, Inc.

Sekisui House Reit, Inc. is an investment corporation investing primarily in commercial properties including office buildings, hotels and retail and other properties, sponsored by Sekisui House, Ltd., a leading homebuilder representing Japan with an established development and management track record also in the property development business. SHR was listed on the Real Estate Investment Trust Section of the Tokyo Stock Exchange, Inc on December 3, 2014 (securities code: 3309). Sekisui House Residential Investment Corporation was established on April 20, 2005, as an investment corporation investing primarily in residences and retail properties, with the corporate name of JOINT REIT Investment Corporation, and listed on the Real Estate Investment Trust Section of the Tokyo Stock Exchange on July 28, 2005. In March 2010, a collaboration system was established with Sekisui House serving as the main sponsor and Spring Investment Co., Ltd. as joint sponsor for the investment corporation, which was renamed from JOINT REIT Investment Corporation to Sekisui House SI Investment Corporation in June 2010. Later, in June 2014, its Articles of Incorporation were revised to set residences as the sole target of investment, and the corporate name was changed to Sekisui House SI Residential Investment Corporation. Subsequently, in association with the shift to a structure in which Sekisui House serves as the sole sponsor in March 2017, SHI was renamed to Sekisui House Residential Investment Corporation in June 2017. The Two Investment Corporations, each under the support of the Sekisui House Group had separately conducted asset management to expand their assets and secure stable returns by utilizing their respective strengths with the aim of continuous enhancement of unitholder value. However, intending to secure strong returns and stability and growth of cash distributions through promoting a steady increase of assets under management and endeavor to maximize unitholder value by further expanding the scale of their assets and increasing their market presence and expanding a variety of opportunities for growth through utilizing the integrated corporate strength of the Sekisui House Group, the Two Investment Corporations conducted an absorption-type merger with SHR as the surviving corporation and SHI as the dissolving corporation, setting May 1, 2018 as the effective date. SHR's investment policy is to conduct asset management that seeks to secure stable earnings over the medium to long term and steady growth of its investment assets, with residential properties and commercial properties as major investment targets. Furthermore, by acquiring urban rental housing in the U.S. developed by Sekisui House, SHR has determined that this will contribute to maximizing unitholder value by incorporating "proactive growth" from overseas (U.S.) in addition to "stable growth" in Japan. Thus, during the fiscal period under review, SHR acquired one overseas residential property through the investment in two LLCs located in the U.S. that own overseas real estate. Sekisui House Reit Inc. was established on September 8, 2014 and incorporated in 2014 in Japan.