-Monthly Report- November 2014

J-REIT Asset Size

Number of Properties:2,782(Last month2,768)
Total assets(acquisition price):¥12,575.4bn (Last month: ¥12,413.6bn)
Total assets(appraised price):¥12,331.7bn(Last month: ¥¥12,138.8bn)
Investment corporations: 46 investment corporations (Last month 46 investment corporations)(as of October 31, 2014)

The NOI cap rateremained level.

◆On October 31, the Policy Board of the Bank of Japan decided on additional monetary easing at a Monetary Policy Meeting and announced its policy of continuing and expanding quantitative and qualitative monetary easing to achieve an inflation rate of 2%. The pillars of the policy are expanding asset purchases and extending the average remaining maturity of long-term Japanese government bonds. The Bank of Japan says that it will increase its J-REIT purchase so that its amount outstanding will increase at an annual pace of 90 billion yen (a three-fold increase).
◆Tosei Corporation (Minato-ku, Tokyo) announced that the listing of the investment unit of Tosei REIT Investment Corporation on the Tokyo Stock Exchange was approved on October 28. Tosei REIT Investment Corporation is planned to be listed on November 27.
◆Sekisui House, Ltd. (Kita-ku, Osaka) announced that the listing of the investment unit of Sekisui House Reit, Inc. was approved on October 31. Sekisui House Reit, Inc. is planned to be listed on December 3.

1. Trends of REIT stock prices(September 2014)

◆Trends of Japanese stock market
In the first half of the month, the Japanese stock market declined significantly, reflecting a downward revision to the IMF’s World Economic Outlook and media reports on the expansion of the Ebola epidemic. In the latter half, the stock market recovered gradually, given an abatement of concern over the future of the world economy due to an improvement in U.S. economic indicators. On October 31, the stock market rose sharply following the Bank of Japan’s announcement of additional monetary easing. The Nikkei Stock Average at the end of October was 16,413.76, up 1.49% from the end of September.
◆REIT Index
In the first half of the month, the J-REIT market was weak due to the same reasons as those for the decline in the stock market and profit taking after six consecutive months of gains. In the latter half, the J-REIT climbed sharply, an increase for the seventh consecutive month, reflecting increases in domestic and overseas stock markets due to an abatement of concern over the future of the world economy and the Bank of Japan’s announcement of additional monetary easing on October 31. The Tokyo Stock Exchange REIT Index was 2,942.29 (including dividends) at the end of October, up 2.90% from the end of September.

The red number shows a rise,the orange numbers show remaining level, andthe green number shows a decline from the previous month.

Report for October 2014 (November 15, 2014)

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Tokyu Land Corporation
21-2 DOGENZAKA 1-CHOME,SHIBUYA-KU,TOKYO,150-0043 JAPAN
tlcjreits@tokyu-land.co.jp