-Monthly Report- january 2015

J-REIT Asset Size

Number of Properties:2,862(Last month2,823)
Total assets(acquisition price):¥12,852.7bn (Last month: ¥12,657.0bn)
Total assets(appraised price):¥12,670.6bn(Last month: ¥12,444.5bn)
Investment corporations: 49 investment corporations (Last month 48 investment corporations)(as of December 31, 2014)

The NOI cap rateremained level.

◆Sekisui House Reit, Inc was listed on the Tokyo Stock Exchange on December 3, 2014. With this, there were six listings in 2014, which was equal to the number listed in 2013 and increased the number of listed investment companies as of the year end to 49.
◆It was publicly announced on January 6 that Kenedix Commerce Reit, Inc. would be listed on the Tokyo Stock Exchange. The company is a type of REIT specializing in commercial facilities, whose assets are managed by Kenedix Real Estate Fund Management, Inc. (Chuo-ku, Tokyo). The listing is scheduled for February 10.

1. Trends of REIT stock prices(December 2014)

◆Trends of Japanese stock market
Stock prices rose at the beginning of the month, reflecting expectations for improved business results for domestic companies on the back of favorable U.S. economic indexes, the depreciation of the yen, etc. In the middle of the month, while the general election had a limited impact on stock prices, with the ruling party winning by a wide margin as expected, stock markets became volatile worldwide out of concern regarding a decline in crude oil prices and the depreciation of the Russian ruble, causing Japanese stock prices to fall significantly. Stock prices fluctuated thereafter, due in large part to factors originating from overseas, as shown in the rise in the response to the December 17 statement from the Federal Open Market Committee of the United States (FOMC), the fall that reflected the feeling of uncertainty regarding the conditions in Russia and the Greek political situation towards the end of the year, etc. In the end, transactions in 2014 closed at a lower price for the first time in four months. The Nikkei Stock Average as of the end of the month stood at 17,450.77 yen (down 0.05% from the end of the previous month).
◆REIT Index
 The J-REIT temporarily showed signs of weakening, reflecting the global volatility of stock markets, due to profit-taking early in the month, a decline in crude oil prices in the middle of the month, and concern regarding the situation in Russia. However, the J-REIT remained steady as assets for investment that benefit most from the advantage of the continued downtrend of long-term interest rates on the back of additional monetary easing initiated by BOJ. In the end, transactions in 2014 closed up for the ninth consecutive month. The Tokyo Stock Exchange REIT Index (including dividends) as of the end of the month stood at 3,273.60 (up 4.26% from the end of the previous month).

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

Report for january 2015 (january 15, 2015)

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