We intend to acquire properties that are generally leased to commercial tenants, such as tenants in the retail, food, services and entertainment industries. These properties generally belong to one of the following two categories:

Retail properties located in central areas of metropolitan areas, such as retail buildings or buildings that consist of multiple boutique-type retail stores, that we believe have a high growth potential;

Retail properties located in suburban areas of metropolitan areas, which we further classify into the following sub-categories:

Suburban Multi-Tenant Retail Properties, such as shopping malls with multiple tenants that we believe offer secure rental revenues and growth potential;

Suburban Single-Tenant Retail Properties, such as large-scale single tenant properties (e.g., supermarkets) that we believe offer secure rental revenues.

We intend to focus our retail property investment activity primarily on those properties located in central areas of metropolitan areas, but we also intend to invest in some retail properties located in suburban areas of metropolitan areas.

We have identified certain areas that we believe are attractive for investment in retail properties because of the concentration of retail stores and population density. Additionally, we differentiate among properties in the same area in an effort to identify superior properties in attractive areas.

In identifying potential retail investment properties, we generally rely on the level of commercial activity in the case of central areas and the size of the customer base surrounding a particular retail property in the case of suburban areas. However, even within the same area, each retail property can be differentiated on the basis of such factors as the theme of the building, the type of tenants and consumer trends. Accordingly, we intend to make investment decisions based on market research, as well as the property's profitability and growth potential.
Unlike office properties, we have not established percentage guidelines or zones for retail properties.

Investment Target Areas

Target Areas	Retail Properties Located in Central Areas	Retail Properties Located in the Suburban Areas
Kanto large metropolitan area	Commercially concentrated areas such as Shibuya/Harajuku/Omotesando, Shinjuku and Ginza.	Retail properties located along major train lines and roadways in prefectures such as Chiba, Kanagawa and Saitama that connect to the central area of Tokyo.
Kansai large metropolitan area	Commercially concentrated areas such as Umeda, Shinsaibashi/Namba and Tennoji.	Retail properties located along major train lines and roadways in the Kyoto, Hyogo, Nara and Shiga prefectures that connect to the central area of Osaka.
Chukyo large metropolitan area	Commercially concentrated areas such as the areas in front of Nagoya Station and Sakae.	Retail properties located along major train lines and roadways in the Aichi, Mie and Gifu prefectures that connect to the central area of Nagoya.
Other metropolitan areas	Commercially concentrated areas with high levels of commercial activity in large government-designated cities such as Sapporo city, Sendai city, Hiroshima city and Fukuoka city. However, we may consider acquiring attractive retail properties situated in other governmentdesignated cities and regional core cities if such cities have a high influx of people from outside such cities due to its tourism business or other businesses.	Retail properties located in areas that are connected to the central areas of large-scale government-designated cities, such as Sapporo city, Sendai city, Hiroshima city and Fukuoka city, by major train lines and roadways and having an established customer base.

Investment Target Size

Type	Feature	Acquisition price per property	Total Floor Space
RetailProperties Located in Central Areas	We intend to focus on growth potential when acquiring retail properties located in central areas. We plan to select retail properties located in commercially concentrated areas of central areas where rental rates are likely to increase due to factors such as greater consumer spending and an increase in the value of land. We expect retail properties in central areas to be retail buildings or buildings that consist of multiple boutique-type retail stores where we believe we can generally expect an increase in revenue through tenant management and planning within a relatively short term.	At least ¥1 Billion	At least 200 tsubo (Approximately 660m2)
Suburban Multi-Tenant Retail Properties:	Retail properties of this type will generally have multiple tenants, such as shopping malls with one or more anchor tenants and multiple other tenants. Generally, we will focus on both stability and growth potential when acquiring retail properties of this type. Accordingly, retail properties of this type will generally be those that provide stable revenue as well as the potential for revenue growth, which is achieved through tenant management and planning as well as a mixture of fixed rental rate arrangements and percentage rent arrangements.	At least ¥2 Billion	At least 1,000 tsubo (Approximately 3,300m2)
Suburban Single-Tenant Retail Properties:	Retail properties of this type will generally have one tenant such as a large supermarket. Generally, we will focus on stability when acquiring retail properties of this type. Accordingly, retail properties of this type will generally be those that provide stable revenue, which is achieved by long-term fixed rental rate arrangements.	At least ¥5 Billion	At least 5,000 tsubo (Approximately 16,500m2)

While we expect to follow the foregoing guidelines, we are not obligated to do so and there may be instances when we elect to acquire a retail property located in a suburban area that does not comply with these guidelines