January 17, 2020

Financial Report for the Fiscal Period Ended November 30, 2019
(June 1, 2019 – November 30, 2019)

Activia Properties Inc.
Listing:
Securities code:
URL:
Representative:

Tokyo Stock Exchange3279
https://www.activia-reit.co.jp/en/
Kazushi Sato, Executive Director

Investment management company:
TLC REIT Management Inc.
Representative: Hiroyuki Tohmata, President & CEO
Contact:
Kazuyuki Murayama, General Manager of Strategy Department,
Activia Management Division
TEL: +81-3-6455-3377
Scheduled date to file Securities Report:
Scheduled date to start distribution payments:
Supplementary material on financial report:
Financial report presentation meeting:February 27, 2020
February 13, 2020
Yes
Yes (for institutional investors and analysts)(Amounts truncated to the nearest million yen)1.

Summary of financial results for the fiscal period ended November 30, 2019
(June 1, 2019 – November 30, 2019)(1) Operating results(Percentages show changes from the corresponding amounts for the previous period.)
Operating revenue

Fiscal period ended
November 30, 2019
Fiscal period ended
May 31, 2019

Operating profit

Ordinary profit

ProfitMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

15,542

4.7

8,680

0.9

7,818

1.2

7,817

1.2

14,843

7.4

8,599

14.0

7,726

15.4

7,725

15.4

Basic earnings per unit

Return on unitholders’equity (ROE)%

Ordinary profit tototal assets

Ordinary profit tooperating revenue

Yen%%
Fiscal period ended
10,1363.1
1.5
50.3
November 30, 2019
Fiscal period ended
10,1183.2
1.6
52.1
May 31, 2019
(Note) Basic earnings per unit is calculated by dividing profit by the day-weighted average number of investment units for theperiod (763,508 units and 771,224 units for the fiscal period ended May 31, 2019, and the fiscal period ended
November 30, 2019, respectively).

-1-(2) Cash distributions
Cash
distributions
per unit

Total
distributions(excluding excessof earnings)(excluding excessof earnings)

Cashdistributions
in excess ofearnings
per unit

Yen Millions of yen
Fiscal period ended
November 30, 2019
Fiscal period ended
May 31, 2019

Total
distributions
in excess ofearnings

Cashdistributions
per unit(including excessof earnings)

Yen Millions of yen

Total
distributions(including excessof earnings)

Yen Millions of yen

10,137

7,817

–

–

10,137

7,817

10,003

7,714

14

10

10,017

7,725

Payout ratio

Distribution
ratio tounitholders’equity%%Fiscal period ended
100.0
3.1
November 30, 2019
Fiscal period ended
99.9
3.1
May 31, 2019
(Note 1) The ¥14 in cash distributions in excess of earnings per unit for the fiscal period ended May 31, 2019 comprises ¥14 inallowance for temporary difference adjustments. There are no distributions on reduction of unitholders’ capital for tax
purposes.
(Note 2) Because new investment units were issued during the fiscal period ended May 31, 2019, the payout ratio for that
period is obtained by the following formula with figures rounded to the first decimal place: Payout ratio = total
distributions (excluding excess of earnings) / profit × 100(3) Financial position

As of November 30, 2019

Total assets

Net assets

Millions of yen
515,480

Millions of yen
256,198

514,359

256,085

As of May 31, 2019
(Reference) Unitholders’ equity
As of November 30, 2019:
As of May 31, 2019:

Unitholders’ equity tototal assets%
49.7

Net assets per unit

49.8

332,050

Yen
332,196¥256,198 million¥256,085 million(4) Cash flows

Fiscal period ended
November 30, 2019
Fiscal period ended
May 31, 2019

Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash
equivalents at end of
periodMillions of yen

Millions of yen

Millions of yen

Millions of yen

11,533(169)(7,978)16,185

10,426(69,832)

59,116

12,800-2-

2.

Forecasts of results for the fiscal period from December 1, 2019 to May 31, 2020 andthe fiscal period from June 1, 2020 to November 30, 2020
(Percentages show changes from the corresponding amounts for the previous period.)
Operatingrevenue

Fiscal period ending
May 31, 2020
Fiscal period ending
November 30, 2020

OperatingprofitOrdinary
profitMillionsof yen% Millionsof yen15,628

0.6

8,590

(1.0)

15,822

1.2

8,667

0.9

% Millionsof yen(excluding excessof earnings)

Cashdistributions
in excess ofearnings
per unitCashdistributions
per unit

Profit% Millionsof yen

%

Yen

Yen

7,621

(2.5) 7,620

(2.5)

9,880

–

7,659

0.5

0.5

9,930

–

7,658

(Reference) Forecasted profit per unit (forecasted profit / total projected number of investment units issued at end of period)
for the fiscal period ending May 31, 2020:¥9,880for the fiscal period ending November 30, 2020:¥9,930* Other(1) Changes in accounting policies, changes in accounting estimates, and restatement of priorperiod financial statements
a.
b.
c.
d.

Changes in accounting policies due to revisions to accounting standards and other regulations: None
Changes in accounting policies due to other reasons: None
Changes in accounting estimates: None
Restatement of prior period financial statements: None

(2) Total number of units issueda.

b.

Total number of units issued at end of period (including treasury units)
As of November 30, 2019

771,224 units

As of May 31, 2019

771,224 units

Number of treasury units at end of period
As of November 30, 2019

– units

As of May 31, 2019

– units(Note) Please refer to “Per Unit Information” on page 34 for the number of investment units used as the basis
for calculating basic earnings per unit.

* Financial reports are exempt from audit conducted by certified public accountants or an audit
corporation.
* Other special items
Forward-looking statements presented in this financial report including forecasts of results are based on
information currently available to us and on certain assumptions we deem to be reasonable. As such, actual
operating and other results may differ materially due to a number of factors. Furthermore, these forecasts arein no way a guarantee of any distribution amount. Please refer to “Assumptions for Forecasts of Investment
Performance for the 17th Fiscal Period from December 1, 2019 to May 31, 2020 and the 18th Fiscal Period
from June 1, 2020 to November 30, 2020” on pages 12 through 14 for information on assumptions for theforecasts.

This English version is a translation of the original Japanese document and is only for reference purposes. In
the case where any differences occur between the English version and the original Japanese version, theJapanese version will prevail.

-3-

Index
1. Asset Management Status .............................................................................................................................. 5(1) Asset Management Status ...................................................................................................................... 5
2. Financial Statements .................................................................................................................................... 15(1) Balance Sheet ....................................................................................................................................... 15(2) Statement of Income ............................................................................................................................ 17(3) Statement of Unitholders’ Equity......................................................................................................... 18(4) Statement of Cash Distributions .......................................................................................................... 20(5) Statement of Cash Flows...................................................................................................................... 22(6) Notes on Assumption of Going Concern ............................................................................................. 23(7) Notes on Important Accounting Policies ............................................................................................. 23(8) Notes to Financial Statements .............................................................................................................. 25(9) Changes in Total Number of Investment Units Issued and Outstanding ............................................. 35
3. Reference Information ................................................................................................................................. 37(1) Composition of Invested Assets ........................................................................................................... 37(2) Investment Assets ................................................................................................................................ 38-4-

1. Asset Management Status(1) Asset Management Statusi) Summary of Results for the Current Fiscal Period(A) Transition of Investment Corporation
Activia Properties Inc. (hereinafter referred to as the “Investment Corporation”) was established on
September 7, 2011, with unitholders’ capital of ¥200 million (400 units) and TLC Township Inc. (onApril 1, 2017, an absorption-type merger took place with current TLC REIT Management Inc.
(hereinafter referred to as the “Asset Manager”) as a surviving company and TLC Activia Investment
Management Inc. (its trade name was changed from TLC Township Inc. on April 1, 2012) as anabsorbed company) as the organizer under the Act on Investment Trusts and Investment Corporations(Act No. 198 of 1951, including subsequent revisions; hereinafter referred to as the “Investment TrustAct”), and completed its registration in the Kanto Local Finance Bureau on September 20, 2011
(Director-General of the Kanto Local Finance Bureau No. 73).
After that, the Investment Corporation was listed on the real estate investment trust securities marketof Tokyo Stock Exchange, Inc. (Securities code 3279) on June 13, 2012. On December 19, 2018, theInvestment Corporation carried out a publicly offered capital increase for the sixth consecutive year,
and on January 7, 2019, it carried out a third-party allotment.
“Activia” of “Activia Properties,” the name of the Investment Corporation, has been coined from thewords “activate” and “ia,” a suffix meaning “place.” By investing in and managing real estate
appropriate to its name, the Investment Corporation seeks to become an entity capable of broadlyenergizing society. The Investment Corporation will also select real estate capable of sustaining
customer demand as a location for both corporate activities and urban recreation in popular areas,
with the aim of maximizing the medium- and long-term value of unitholders, supported by its
proactive management (management to improve the circumstances by taking initiatives and acting forthe future).
In the fiscal period under review, which ended on November 30, 2019, the Investment Corporationtransferred beneficiary interests of real estate in trust of A-FLAG AKASAKA (50% co-ownershipinterest) (Note). Consequently, the Investment Corporation held 44 properties (with the totalacquisition price of ¥498,985 million) at the end of the fiscal period under review.
(Note) Co-ownership interests of 50% had already been transferred as of March 1, 2019 and theremaining 50% co-ownership interest has now been transferred as of June 3, 2019.
(B) Investment Environment in the Fiscal Period under Review
In the fiscal period under review, the Japanese economy continued on a trend of gradual recovery on
the whole amid factors that included corporate earnings holding steadily at high levels and improving
employment and income environments although concerns of recession in the global economy sparked
by Sino-American trade talks resulted in continued weakness in exports and cautious businesssentiment particularly in the manufacturing industry.
With respect to the environment surrounding retail properties, consumer sentiment has remained firm
amid a current scenario where the consumer confidence index has increased for two consecutive
months running up to November, and despite concerns regarding effects of October’s consumption
tax hike as well as typhoons and other natural disasters, according to the Monthly Consumer
Confidence Survey released by the Economic and Social Research Institute, Cabinet Office,
Government of Japan. Moreover, according to the Consumption Trend Survey for Foreigners Visiting
Japan released by the Japan Tourism Agency, the Ministry of Land, Infrastructure, Transport andTourism, demand related to inbound tourism has remained strong with tourism consumption by
overseas visitors to Japan having reached a record-high over the months January to September 2019,
despite a downturn in the number of tourists from South Korea due to discord between Japan andSouth Korea.
In the rental office market, supply has continued to tighten relative to demand. In that regard,
according to data published by Miki Shoji Co., Ltd., the average vacancy rate of the five central wardsof Tokyo (Chiyoda-ku, Minato-ku, Chuo-ku, Shibuya-ku and Shinjuku-ku) has been hovering justabove the 1% range since November 2018, thereby currently marking a new record low. Meanwhile,rent levels have been continuing on an upward trajectory as they encounter their longest upward phaseof gains ever with the average rent having been increasing for 71 consecutive months. The market has
also remained favorable in major cities outside Tokyo as vacancy rates hold to their lowest ever-5-

levels, having decreased to the 1% range in Osaka, for instance, along with ongoing moderateincreases in rent levels.
The J-REIT market has been maintaining an upward trend overall partially due to an inflow of funds
targeting earnings stability and relatively high yields, against a backdrop of interest-rate environment
remaining at low levels and a strong real estate market. Financing activities through publicly offeredcapital increase and property acquisition have been continuously and actively conducted, and this has
led to an ongoing expansion in J-REIT asset sizes.
(C) Investment Performance
On June 3, 2019, the Investment Corporation transferred beneficiary interests of real estate in trust of
A-FLAG AKASAKA (50% co-ownership interest) (with the transfer price of ¥1,875 million) as trust
assets in accordance with the basic asset management policy set forth in the Articles of Incorporation.
Consequently, total assets held by the Investment Corporation at the end of the fiscal period underreview were 44 properties (with the total acquisition price of ¥498,985 million) with the total leasablearea of 414,008 m2 (125,235 tsubo).
The trend of monthly average occupancy rate (Note) during the fiscal period under review is asfollows:
June 30,
2019

July 31,2019

August 31,
2019

September
30, 2019

October 31,
2019

November30, 2019

Urban Retail
Properties

99.9%

99.9%

99.9%

99.9%

99.8%

99.8%

Tokyo Office
Properties

100.0%

100.0%

100.0%

100.0%

99.9%

99.9%

Activia
Account
Properties

99.1%

99.0%

99.3%

99.3%

99.7%

99.7%

Total

99.6%

99.5%

99.7%

99.6%

99.8%

99.8%

(Note)

Figures for occupancy rates are rounded to the nearest tenth.

(D) Initiatives Regarding Sustainability
In order to build a portfolio consisting of “real estate capable of sustaining customer demand” withthe aim of maximizing medium- and long-term unitholder value, the Investment Corporation has beenpromoting various initiatives with its sights set on lowering environmental loads and contributing toour nearby surroundings and local communities, thereby extending beyond considerations such as
location, use, size and qualities. Based on such initiatives, the Investment Corporation’s asset
management company TLC REIT Management Inc. established the “Sustainability Policy,” clearlystating our approach in contributing to sustainable development of society. In July 2019, as material
issues that the Investment Corporation needs to address, we released quantitative targets
encompassing a wider range of performance benchmarks from an environmental standpoint, and also
clearly stated practical management policy to such ends. This involves daily effort to achieve ourbasic objective of reducing four items, including cutting unit energy consumption and greenhousegases (GHG) by an annual average of 1% over the medium to long term. Initiatives carried out in thefiscal period under review include upgrading to LED lighting at some common areas of Tokyu Plaza
Akasaka, DECKS Tokyo Beach, Luogo Shiodome, A-PLACE Gotanda Ekimae, A-PLACE
Bashamichi and EDGE Shinsaibashi, and some private areas at A-PLACE Ebisu Minami, A-PLACE
Shinagawa, A-PLACE Ebisu Higashi, A-PLACE Gotanda Ekimae, A-PLACE Kanayama and EDGE
Shinsaibashi. Other initiatives included replacing escalators with those that consume less power andreplacing air conditioning units with those offering greater energy efficiency at A-FLAG SAPPORO;
replacing air conditioning units with those that use environmentally sound refrigerants at DECKSTokyo Beach; installing energy-saving glass at A-PLACE Shinbashi; replacing toilets with those thatuse water-saving equipment, and replacing elevators with those that consume less power and generate
lower carbon dioxide emissions at Osaka Nakanoshima Building.
Moreover, we continue to engage in annual initiatives geared to acquiring green building
certifications, and during the fiscal period under review, we have acquired the BELS certifications forthe one property Q plaza HARAJUKU (two stars). As such, a total of 25 of our properties have-6-acquired green building certification, which amounted to 59.0% of our holdings calculated on thebasis of gross floor area (as of November 30, 2019).
Furthermore, at Tokyu Plaza Omotesando Harajuku, we continued the “Yasai-no-mori (garden ofvegetables) Project,” which entails the property growing vegetables in cooperation with NPOs,
sponsor companies, and neighboring nursery schools. We also cooperated in community activities tocoexist with nearby businesses, residents and cities as part of initiatives for local society, which
during the fiscal period under review included Shiodome Building acting as special sponsor of theHamasite Summer Festival and Kyoto Karasuma Parking Building taking part in the Gion Festival.
The Investment Corporation will contribute to achieving a sustainable society by engaging in suchinitiatives geared to the environment and society.
(E) Overview of Financing
In the fiscal period under review, the Investment Corporation diversified repayment dates on debt,
extended the average maturity, and diversified means of financing. Also, with the aims of further
promoting its sustainability initiatives and expanding its range of investors by fueling demand fromnew investors who are interested in ESG investment, the Investment Corporation issued its first green
bonds (unsecured investment corporation bonds) of ¥5,000 million and ¥4,000 million in July andNovember, 2019, respectively, and used the funds to cover repayment of short-term borrowings. In
addition, the Investment Corporation refinanced borrowings amounting to a total of ¥18,100 million
largely in order to cover repayment of borrowings and investment corporation bonds that had comedue, and worked to otherwise maintain a stable financial base through ongoing moves that haveincluded diversifying repayment dates. As of the end of the fiscal period under review, the balance ofinterest-bearing debt was ¥234,350 million (borrowings of ¥211,350 million and investment
corporation bonds of ¥23,000 million). The ratio of interest-bearing debt to total assets (LTV =Balance of interest-bearing debt / Total assets x 100) was 45.5% as of the end of the fiscal period
under review. The long-term debt ratio and the ratio of fixed-interest debt to total interest-bearing debt
were 97.9% and 92.8%, respectively.
The credit rating the Investment Corporation has obtained as of the end of the fiscal period underreview is as follows. This investment unit does not have a credit rating provided or made available forinspection by a credit rating agency or one scheduled to be provided or made available for inspection
by a credit rating agency at the Investment Corporation’s request.
Credit Rating Agency

Rating

Forecast

Japan Credit Rating Agency (JCR)

Long-term issuer rating: AA

Stable(F) Overview of Financial Results and Distributions in the Fiscal Period under Review
As a result of the above-mentioned investments, operating revenue, operating profit, and ordinary
profit were ¥15,542 million, ¥8,680 million, and ¥7,818 million, respectively, for the fiscal period
under review, and profit was ¥7,817 million.
In accordance with the distribution policy set forth by the Investment Corporation (Article 35 of the
Articles of Incorporation), it was decided that the amount obtained by subtracting reversal of
allowance for temporary difference adjustments from all of the amount of unappropriated retained
earnings would be distributed except a fraction of less than ¥1 of distributions per investment unit,
with the aim that as greatest as possible distributions of profits would be included in tax deductible
expenses under Article 67-15 of the Act on Special Measures Concerning Taxation (Act No. 26 of
1957, including subsequent revisions; hereinafter referred to as the “Special Taxation Measures Act”).
Consequently, distributions per investment unit resulted in ¥10,137.

-7-ii) Outlook for the Next Fiscal Period(A) Investment Environment for the Next Fiscal Period
In the Japanese economy going forward, we are observing a firm underpinning supported byrobustness in corporate earnings and the employment and income environments on the domestic front
despite a lack of clarity on what effect global economic slowdown will have on exports and capital
expenditure. Meanwhile, we will need to closely monitor developments, particularly those involving
the progress of Sino-American trade negotiations, monetary policy in Europe and the U.S., and the
direction being taken regarding the U.K.’s withdrawal from the European Union.
In the rental office market, a scenario of vacancy rates remaining at low levels and moderately rising
rent levels is likely to persist amid strong office demand particularly due to factors that include
continuing office environment improvements, and office space expansion by the relocation or
extension of facilities due to workforce increases, against a backdrop of robust corporate performance.
With respect to the environment surrounding retail properties, we will need to closely monitor effectsof the consumption tax hike and other such concerns, despite prevailing signs of recovery in consumer
sentiment and a trend of brisk spending by overseas visitors to Japan. The J-REIT market is likely toremain firm in part given the likelihood of low interest rates due to ongoing monetary easing, and also
against a backdrop of factors that include consistent J-REIT performance and relatively high dividend
yields. Amid this environment, the Investment Corporation will continue to promote internal growthby leveraging the competitiveness of its assets under management, while also working to achieve
external growth through careful investment decisions, with the aim of improving unitholder value.
(B) Investment Policy and Developments to Be Addressed in the Next Fiscal Perioda. Basic Policy
The Investment Corporation’s basic policies are to invest in assets, with targeted investments in
Urban Retail and Tokyo Office properties; utilize the Tokyu Fudosan Holdings Group’s value chain
based on the comprehensive support system; and a governance structure that maximizes unitholder
value.
b. External Growth Strategy
The Investment Corporation will invest in Urban Retail and Tokyo Office properties as a main
target. It will make its investment decisions carefully, concentrating on selecting properties in
excellent locations, including surrounding areas, and thoroughly considering individual factors suchas use, size, specifications and other qualities of properties, and credibility and name recognition oftenants, in order to construct a competitive portfolio in the medium to long term.
To acquire these competitive assets on an ongoing basis, the Investment Corporation will work tomaintain and improve the quality of its portfolio by carefully selecting investment assets based on
the information it receives under its sponsor support agreement with Tokyu Land Corporation
regarding the Investment Corporation and its support agreement with five group companies in the
Tokyu Fudosan Holdings Group. It will also acquire properties through the exclusive know-how
and information-gathering network of the Asset Manager.
c. Internal Growth Strategy
The Investment Corporation will operate, manage, and refurbish its portfolio to maintain andimprove the competitiveness of its facilities through a comprehensive understanding of the featuresof its overall portfolio and its individual assets under management, based on the unique expertise of
its Asset Manager. The Investment Corporation will also seek to manage its portfolio in a stablemanner and strengthen its earnings by establishing appropriate operational and management
systems tailored to the specific characteristics of the assets it has invested in, and through regularand non-regular inspections by the property management company that has considerable experiencein the operation and management of real estate.
The Investment Corporation will also maintain and improve the value of its assets through its
expertise in internal growth through operating and managing properties. It will maximize thecompetitiveness of its assets through the ongoing assistance of Tokyu Land Corporation and othersupport companies, which, through their face-to-face business with consumers, have richinformation regarding consumer needs and developments in industries such as retail and services.
With respect to the property management business for the assets under management, leasing support
has been provided from Tokyu Land Corporation, Tokyu Land SC Management Corporation or
Tokyu Community Corp.
-8-

d. Financial Strategy
Having the sound financial strategy in an effort to conservatively control LTV as well as makestable long-term borrowings and diversify maturities (diversifying repayment dates), the Investment
Corporation will endeavor to build stable financial base with solid bank formation. In addition, withthe aim of diversifying means of raising funds, the Investment Corporation will issue investment
corporation bonds while paying close attention to trends in financial markets. Concerning theissuance of new investment units, moreover, the Investment Corporation will prudently and flexibly
carry out such issuance while paying appropriate attention to various environmental factors with theaim of achieving long-term and stable growth.
(C) Significant Subsequent Events
Not applicable.
< Reference Information >a. Acquisition of Properties
The Investment Corporation acquired the property listed below through borrowings, etc. inaccordance with the basic asset management policy set forth in the Articles of Incorporation.
(TO-18) Ebisu Prime Square (acquisition of 51% co-ownership interest)
Type of assets

Trust beneficiary interest

Acquisition price¥30,700 million

Acquisition date

January 10, 2020

Locationi) 1-39, Hiroo 1-chome, Shibuya-ku, Tokyoii) 1-40, Hiroo 1-chome, Shibuya-ku, Tokyoiii) 1-7, Hiroo 1-chome, Shibuya-ku, Tokyoi) Office, retail, parking lotsii) Retail, parking lotsiii) Residence, sports club, parking lots
12,179.49 m2

Use

Land area
Gross floor area
(Note)
Structure

Month and year ofcompletion
Ownership

67,581.00 m2
i)

Steel frame, reinforced concrete, steel-framed reinforced
concrete / 22 floors above and 3 floors undergroundii) Reinforced concrete / 2 floors above and 2 floors undergroundiii) Steel-framed reinforced concrete, reinforced concrete / 13 floors
above and 2 floors underground
January 1997

Land:
Owned (51% co-ownership interest)
Building: Owned (51% co-ownership interest)(Note) Total gross floor areas of the three buildings.

-9-

b. Transfer of Properties
The Investment Corporation plans to transfer property listed below in accordance with the basic
asset management policy set forth in the Articles of Incorporation.
(TO-17) A-PLACE Shinbashi EkimaeType of assets

Trust beneficiary interest

Scheduled transfer
price
Scheduled delivery
date (Note)
Location¥21,000 million

Use

Retail, office and parking lots

Land area

1,001.39 m2

Gross floor area

8,541.44 m2

Structure

Steel frame, steel-framed reinforced concrete / 10 floors above and1 floor underground
April 2008 / partial demolition and extension in May 2018

Month and year ofcompletion
Ownership

March 19, 2020
12-9, Shinbashi 1-chome, Minato-ku, Tokyo

Land:
Owned
Building: Owned(Note) The contract for the sale of trust beneficiary interests falls under a forward
commitment, etc. as provided in the “Comprehensive Guidelines for Supervision of
Financial Instruments Business Operators, etc.” by Financial Services Agency(forward commitment, etc. refers to a postdated sales contract under which payment
and delivery shall be made at least one month after the conclusion of the contract, or
any other contract similar thereto).

- 10 -

(D) Outlook of Investment Performance
For the fiscal period ending May 31, 2020 (17th fiscal period: December 1, 2019 to May 31, 2020),
investment performance is estimated as follows. For the assumptions used for the estimation of
investment performance, please refer to “Assumptions for Forecasts of Investment Performance forthe 17th Fiscal Period from December 1, 2019 to May 31, 2020 and the 18th Fiscal Period from June
1, 2020 to November 30, 2020” on pages 12 through 14.
Operating revenue¥15,628 million

Operating profit¥8,590 million

Ordinary profit¥7,621 million

Profit¥7,620 million

Cash distributions per unit

¥9,880Cash distributions in excess of earnings per unit¥–

If it is assumed that there are no changes in “Assumptions for Forecasts of Investment Performancefor the 17th Fiscal Period from December 1, 2019 to May 31, 2020 and the 18th Fiscal Period from
June 1, 2020 to November 30, 2020” on pages 12 through 14, the outlook of investment performancefor the fiscal period ending November 30, 2020 (18th fiscal period: June 1, 2020 to November 30,2020) is estimated as follows.
Operating revenue¥15,822 million

Operating profit¥8,667 million

Ordinary profit¥7,659 million

Profit¥7,658 million

Cash distributions per unit

¥9,930Cash distributions in excess of earnings per unit¥–

(Note) The above estimation is determined based on certain assumptions at the time of preparing
the financial statements. Due to changes in the circumstances surrounding the Investment
Corporation including acquisition or disposition of properties, the trend of real estatemarket, etc. in the future, actual operating revenue, operating profit, ordinary profit, profit
and cash distributions per unit may change. Furthermore, this estimation does notguarantee the amount of distributions.

- 11 -

Assumptions for Forecasts of Investment Performance for the 17th Fiscal Period from December 1,
2019 to May 31, 2020 and the 18th Fiscal Period from June 1, 2020 to November 30, 2020
Item
PeriodAssumptions
・ 17th fiscal period (December 1, 2019 to May 31, 2020) (183 days)
・ 18th fiscal period (June 1, 2020 to November 30, 2020) (183 days)

Investment
portfolio

・ Whereas the Investment Corporation holds trust beneficiary interests in 45
properties as of today (the “Assets Currently Held”), it will hold trust beneficiaryinterests in 44 properties upon disposition of A-PLACE Shinbashi Ekimae (the“Asset to be Transferred”) slated for March 19, 2020. Other than the
aforementioned, our forecasts of investment performance assume that there will be
no material changes to the composition of our investment portfolio, including
acquisition of new properties or transfer of portfolio properties, before the end of the
18th fiscal period (November 30, 2020).
・ Our forecasts, however, may change due to any changes to the composition of ourinvestment portfolio.

Operatingrevenue・ We have calculated our real estate leasing business revenues from the Assets
Currently Held taking into account the relevant lease agreements effective as oftoday, market trends, etc.
・ Operating revenue is based on our assumption that there will be no delinquencies or
non-payment of rents by tenants.
・ We expect to record gains on sales amounting to ¥158 million in the fiscal period
ending May 31, 2020 (17th fiscal period), in association with the transfer of theAsset to be Transferred. This may change, however, depending on outcomes of thesales, transfer prices, transfer dates and other conditions.

Operatingexpenses・ Expenses related to leasing business (other than depreciation), which are ourprincipal operating expenses, were calculated based on the historical information
and upon considering variable factors. Expenses for Ebisu Prime Square (51% coownership interest) (the “Acquired Assets”) are calculated based on the information
provided by the former owner (seller) and upon considering variable factors andothers.
・ In general, property tax and city planning tax of properties acquired are settled at thetime of acquisition between the former owner (seller) and the purchaser based on
their respective periods of ownership in relation to the relevant tax year. However,any of these taxes allocated to the purchaser are not expensed at the time ofacquisition because they are treated as a part of the acquisition cost for accounting
purposes. The total amount of property tax and city planning tax on assets planned
for acquisition that are treated as a part of the acquisition cost is assumed to be ¥135
million. For property tax and city planning tax, ¥1,099 million and ¥1,270 million
for the Assets Currently Held will be expensed in the fiscal period ending May 31,2020 (17th fiscal period) and in the fiscal period ending November 30, 2020 (18thfiscal period), respectively. With regard to the Acquired Assets, for fiscal 2021,
property tax and city planning tax will be expensed from the fiscal period ending
November 30, 2021 (20th fiscal period).
・ Repair and maintenance expenses of buildings are estimated at the amount required
for each of the fiscal periods based on the medium- and long-term repair andmaintenance plans formed by the Asset Manager. However, the actual repair andmaintenance expenses for the fiscal periods may significantly differ from theestimates since (i) an unforeseeable event may cause serious damage to a building
requiring emergent repair expenditure, (ii) in general, amounts vary according to thefiscal period, and (iii) certain types of repair and maintenance expenses are notrequired in every fiscal period.
・ We calculate depreciation expenses (including incidental expenses) by the straightline method, assuming ¥1,334 million and ¥1,334 million for the 17th fiscal period
ending May 31, 2020 and the 18th fiscal period ending November 30, 2020,
respectively.
- 12 -

Item

Assumptions

Operatingexpenses

・ With respect to the Asset to be Transferred, operating accounts receivableamounting to ¥234 million recorded during the free rent period will be reclassified
as other expenses related to leasing business and recognized as an expense.
・ At the Investment Corporation’s Unitholders’ Meeting held on August 9, 2019,changes were implemented to the rules regarding the management fee including thelowering of the upper limit of the type I management fee (based on the amounts ofthe total assets of the Investment Corporation under management) from 0.4% to0.3% and the lifting of the upper limit of type II management fee (based on DPU
and NOI) from 0.0002% to 0.00021%. The changes will take effect from the period
ending May 31, 2020 (17th fiscal period), and under the asset management fee
structure after said change, a type I management fee of 0.25% and a type II
management fee of 0.00021% will be applied.

Non-operating
expenses・ We expect interest and other borrowing-related expenses of ¥968 million and ¥1,007
million for the 17th fiscal period ending May 31, 2020 and the 18th fiscal period
ending November 30, 2020, respectively.

・ As of today, we have a balance of ¥265,350 million in interest-bearing debt
(borrowings of ¥242,350 million and investment corporation bonds of ¥23,000
million). However, we assume that a balance of interest-bearing debt will be¥244,350 million after making repayment of ¥21,000 million from the proceeds
associated with the sale of the Asset to be Transferred on March 19, 2020.
・ We assume that repayment will be made of ¥21,000 million in short-termborrowings coming due in the 17th fiscal period on March 19, 2020 (17th fiscal
period), and that there will be refinancing of all remaining interest-bearing debt
Interest-bearing
coming due before the end of the 17th fiscal period (May 31, 2020) and the 18thdebt
fiscal period (November 30, 2020) (17th fiscal period: short-term borrowings of¥21,000 million, long-term borrowings of ¥3,500 million and investment
corporation bonds of ¥6,000 million; 18th fiscal period: short-term borrowings of¥4,000 million).
・ We assume the LTV ratios as of May 31, 2020 and November 30, 2020 are both to
be 46.6%.
・ The LTV ratio is obtained by the following formula:
LTV = Balance of interest-bearing debt / Total assets × 100

Units

・ The number is based on our assumption of total of 771,224 units issued as of today.
We assume that there will be no additional issuance of new investment units before
the end of the 18th fiscal period (November 30, 2020).
・ The cash distributions per unit for the 17th fiscal period ending May 31, 2020 andthe 18th fiscal period ending November 30, 2020 have been calculated inaccordance with the total projected number of investment units issued as of the endof each of the fiscal periods which are 771,224 units.

・ Cash distributions (cash distributions per unit) are calculated based on the cash
distribution policy stipulated in our Articles of Incorporation.
・ The cash distributions per unit may change due to various factors, including changes
Cash distributions
to the composition of our investment portfolio, changes in rental revenues
per unit
accompanying changes in tenants, and unexpected maintenance and repairs.
・ Deferred losses on hedges, which arise from interest rate swaps and are counted as adeduction in net assets, are calculated assuming no fluctuation.
・ As stated above, deferred losses on hedges, which are counted as a deduction in net
Cash distributions
assets, are calculated assuming no fluctuation. Accordingly, we do not anticipate
in excess of
distributions in excess of earnings (allowance for temporary difference adjustments)
earnings per unit
for the 17th fiscal period ending May 31, 2020 or the 18th fiscal period ending
November 30, 2020.
- 13 -

Item

Other

Assumptions
・ Among cash distributions in excess of earnings, we currently do not anticipate
distributions deemed as distributions on reduction of unitholders’ capital for tax
purposes.
・ We assume that there will be no amendments in legislation, taxation, accounting
standards, listing regulations or regulations of the Investment Trusts Association ofJapan that affect the above forecasts.
・ We assume that there will be no material changes in general economic conditions orreal estate markets.

- 14 -

2. Financial Statements(1) Balance Sheet(Unit: Thousands of yen)
As of May 31, 2019
AssetsCurrent assets
Cash and deposits
Cash and deposits in trust
Operating accounts receivable
Prepaid expenses
Other
Total current assets
Non-current assets
Property, plant and equipment
Buildings in trust
Accumulated depreciation
Buildings in trust, net
Structures in trust
Accumulated depreciation
Structures in trust, net
Machinery and equipment in trust
Accumulated depreciation
Machinery and equipment in trust, net
Tools, furniture and fixtures in trust
Accumulated depreciation
Tools, furniture and fixtures in trust, net
Land in trust
Construction in progress in trust
Total property, plant and equipment
Intangible assets
Land leasehold interests in trust
Other
Total intangible assets
Investments and other assets
Long-term prepaid expenses
Derivatives
Deferred tax assets
Other
Total investments and other assets
Total non-current assets
Deferred assets
Investment corporation bond issuance costs
Total deferred assets
Total assets- 15 -

As of November 30, 2019

9,257,380
3,542,901
866,251
507,244
7,987
14,181,766

12,670,027
3,515,426
804,474
355,113
6,749
17,351,791

84,710,063(12,065,901)
72,644,162
698,826(185,296)
513,529
1,406,968(359,497)
1,047,471
222,204(113,714)
108,489
415,408,426
5,928
489,728,007

84,986,537(13,256,431)
71,730,105
703,696(201,554)
502,1421,434,131(388,834)
1,045,296
247,197(128,828)
118,368
414,174,855
5,928
487,576,696

9,092,591
1,695
9,094,287

9,055,086
1,441
9,056,527

1,258,702–
24
38,322
1,297,049
500,119,344

1,350,026
8,954
5
38,322
1,397,309
498,030,533

58,103
58,103514,359,213

98,652
98,652515,480,977

(Unit: Thousands of yen)
As of May 31, 2019
Liabilities
Current liabilities
Operating accounts payable
Short-term borrowings
Current portion of investment corporation bonds
Current portion of long-term borrowings
Accounts payable - otherAccrued expenses
Income taxes payable
Accrued consumption taxes
Advances received
Deposits received
Other
Total current liabilities
Non-current liabilities
Investment corporation bonds
Long-term borrowings
Leasehold and guarantee deposits received intrust
Derivatives liabilities
Total non-current liabilities
Total liabilities
Net assets
Unitholders’ equity
Unitholders’ capital
Deduction from unitholders’ capital
Allowance for temporary difference
adjustments
Total deduction from unitholders’ capital
Unitholders’ capital, net
Surplus
Unappropriated retained earnings (undisposed
loss)
Total surplus
Total unitholders’ equity
Valuation and translation adjustments
Deferred gains or losses on hedges
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

As of November 30, 2019

614,988
14,000,000
6,000,000
20,400,000
375,773929,635
1,099
165,430
574,299
11,019043,072,245

1,265,123
5,000,000
6,000,000
7,300,000
198,011
963,509605
379,062
581,577
1,390–
21,689,281

8,000,000
185,950,000

17,000,000
199,050,000

21,239,977

21,543,424

11,474215,201,452
258,273,697–
237,593,424
259,282,705

248,370,846

248,370,846–*2- 16 -*3(10,797)–248,370,846(10,797)248,360,049

7,726,143

7,829,267

7,726,143
256,096,990

7,829,267
256,189,316(11,474)(11,474)
256,085,515
514,359,213

8,954
8,954
256,198,271
515,480,977*2

(2) Statement of Income(Unit: Thousands of yen)Previous fiscal period(From December 1, 2018
to May 31, 2019)
Operating revenue
Leasing business revenue
Other leasing business revenue
Gain on sales of real estate properties
Total operating revenue
Operating expenses
Expenses related to leasing business
Asset management fee
Asset custody fee
Administrative service fees
Remuneration for directors (and other officers)
Other operating expenses
Total operating expenses
Operating profit
Non-operating income
Interest income
Reversal of distributions payable
Insurance claim income
Total non-operating income
Non-operating expenses
Interest expenses
Interest expenses on investment corporation bonds
Amortization of investment corporation bondissuance costs
Investment unit issuance expenses
Borrowing related expenses
Other
Total non-operating expenses
Ordinary profit
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitRetained earnings brought forward
Unappropriated retained earnings (undisposed loss)- 17 -

Current fiscal period(From June 1, 2019
to November 30, 2019)

*1
*1
*2

13,472,375
1,030,063
341,051
14,843,490

*1
*1
*2

14,063,573
1,136,219
343,063
15,542,856*14,973,578
1,127,058
14,02135,1683,300
90,8306,243,957
8,599,533*1

5,464,545
1,249,529
14,64137,8743,300
92,843
6,862,734
8,680,122

73
913
–
986

59
967
663
1,690

634,549
36,262636,20335,543

9,542

9,905

25,013
167,716500
873,583
7,726,936
7,726,936
1,110
(6)
1,104
7,725,832
311
7,726,143–
181,347500
863,501
7,818,311
7,818,311
614
19
634
7,817,677
11,5897,829,267

(3) Statement of Unitholders’ Equity
Previous fiscal period (From December 1, 2018 to May 31, 2019)(Unit: Thousands of yen)
Valuation and translation
adjustments

Unitholders’ equity
Surplus
Unitholders’capitalBalance at beginning of
period217,091,520

Unappropriatedretained earnings(undisposed loss)

Total surplus

Totalunitholders’equity6,696,690

6,696,690

223,788,210

Deferred
gains orlosses onhedgesTotalvaluationandtranslation
adjustments

54,24554,245

Total net
assets

223,842,455

Changes in items during
periodIssuance of new
investment units

31,279,326

Dividends ofsurplusProfit31,279,326

31,279,326(6,696,379)(6,696,379)(6,696,379)(6,696,379)

7,725,832

7,725,832

7,725,832

7,725,832

Net changes in
items other than(65,719)(65,719)(65,719)

unitholders’ equity
Total changes in
items during period
Balance at end of
period31,279,326*1
248,370,846

1,029,453

1,029,453

32,308,779(65,719)(65,719)

32,243,059

7,726,143

7,726,143

256,096,990(11,474)(11,474)

256,085,515- 18 -

Current fiscal period (From June 1, 2019 to November 30, 2019)(Unit: Thousands of yen)
Unitholders’ equity
Unitholders’ capital

Unitholders’capitalBalance at beginningof period
Changes in items
during period
Dividends ofsurplusDistribution inexcess of net
earnings fromallowance fortemporarydifference
adjustments

248,370,846

Surplus

Deduction from unitholders’capital
Total
Allowance
deduction
for temporaryfromdifference
unitholders’adjustments
capital–(10,797)–(10,797)

Unitholders’capital, net

Unappropriatedretainedearnings(undisposed
loss)

Total surplus

Totalunitholders’equity248,370,846

7,726,143

7,726,143

256,096,990(7,714,553)(7,714,553)(7,714,553)(10,797)

ProfitNet changes in
items other thanunitholders’ equity
Total changes in items
during period
Balance at end of
periodBalance at end of
period7,817,677

7,817,677(10,797)(10,797)(10,797)

103,123

103,123

92,326*1
248,370,846(10,797)(10,797)248,360,049

7,829,267

7,829,267

256,189,316(11,474)(11,474)

256,085,515(7,714,553)(10,797)

ProfitNet changes in items
other thanunitholders’ equity
Total changes in items
during period

7,817,677–(Unit: Thousands of yen)
Valuation and translation
adjustments
Total
Total net
Deferredvaluationassetsgains orandlosses ontranslation
hedgesadjustments
Balance at beginningof period
Changes in items
during period
Dividends ofsurplusDistribution inexcess of net
earnings fromallowance fortemporarydifference
adjustments(10,797)

7,817,677
20,42920,42920,42920,42920,429112,756

8,954

8,954

256,198,271- 19 -

(4) Statement of Cash Distributions
Previous fiscal period(From December 1, 2018
to May 31, 2019)

Current fiscal period(From June 1, 2019
to November 30, 2019)

AmountAmountI

Unappropriated retained
earnings¥7,726,143,417¥7,829,267,374

II

Additional amount of cash
distributions in excess ofearnings¥10,797,136–

Of which, allowance fortemporary difference
adjustments¥10,797,136–

III Amount incorporated into
unitholders’ capital–¥10,797,136

Of which, reversal of
allowance for temporary
difference adjustments–¥10,797,136¥7,725,350,808¥7,817,897,688[¥10,017][¥10,137]

Of which, distributions ofprofits¥7,714,553,672¥7,817,897,688[Of which, distributions ofprofits per unit][¥10,003][¥10,137]

Of which, allowance fortemporary difference
adjustments¥10,797,136–[Of which, cash
distributions in excess ofearnings per unit
(Related to allowance fortemporary difference
adjustments)]

[¥14]

[¥–]

Earnings carried forward¥11,589,745¥572,550

IV Distributions[Cash distributions per unit]V- 20 -

Calculation method for
distributions

Based on the distribution policy
Based on the distribution policy
set forth in Article 35, Paragraph set forth in Article 35, Paragraph
1 of the Articles of Incorporation 1 of the Articles of Incorporationof the Investment Corporation,of the Investment Corporation,
distributions shall be limited to
distributions shall be limited tothe amount of net profit in excess the amount of net profit in excess
of an amount equivalent to ninety of an amount equivalent to ninety
hundredths (90/100) of
hundredths (90/100) of
distributable profits, as stipulated distributable profits, as stipulated
in Article 67-15, Paragraph 1 ofin Article 67-15, Paragraph 1 of
the Act on Special Measures
the Act on Special Measures
Concerning Taxation. In
Concerning Taxation. In
consideration of this policy, we
consideration of this policy, we
will pay distributions of profits of will pay distributions of profits of¥7,817,897,688, which is the¥7,714,553,672, which is theamount of the unappropriatedamount of the net profit definedin Article 136, Paragraph 1 of the retained earnings less the reversalof allowance for temporary
Act on Investment Trusts andInvestment Corporations, except a difference adjustments (refers to
stipulations of Article 2,
fraction of less than ¥1 of
distributions per investment unit. Paragraph 2, Item 30 of theRegulations on Accountings ofBased on the policy on
distribution of cash exceeding net Investment Corporations), except
a fraction of less than ¥1 ofprofit set forth in Article 35,
distributions per investment unit.
Paragraph 2 of the Articles ofIncorporation of the Investment
Corporation, distributions inexcess of earnings shall be madein an amount decided by theInvestment Corporation andequivalent to a deduction in net
assets (refers to stipulations ofArticle 2, Paragraph 2, Item 30(b) of the Regulations on
Accountings of Investment
Corporations), taking into accounteffects of the deduction in net
assets on distribution amounts.
During the fiscal period underreview, the Investment
Corporation has accordingly
decided to distribute ¥10,797,136
as distributions related toallowance for temporary
difference adjustments (refers to
stipulations of Article 2,
Paragraph 2, Item 30 of theRegulations on Accountings ofInvestment Corporations),
calculated to exclude a fraction ofless than ¥1 of distributions inexcess of earnings per investment
unit, with the amount equivalent
to deferred losses on hedges of¥11,474,393. As a result,distributions are to amount to¥7,725,350,808 for the fiscal
period under review.

- 21 -

(5) Statement of Cash Flows(Unit: Thousands of yen)Previous fiscal period(From December 1, 2018
to May 31, 2019)

Current fiscal period(From June 1, 2019
to November 30, 2019)

7,726,936
1,295,168
3,793

7,818,311
1,299,058
–

9,542

9,905

(73)
670,81125,013
167,716(17,425)(291,956)(172,582)(59)
671,747–
181,347
61,777
213,632
165,699

1,495,081

1,493,070

37,505(75,397)
72,335
145,410
9,113(5,940)11,095,053
73(668,083)(987)
10,426,056

37,505
303,762
19,133
7,278(83,861)(10,040)
12,188,268
59(653,684)(1,108)
11,533,534(71,588,974)(472,822)(326,192)(345,198)

2,082,892

648,645(69,832,274)(169,375)

18,095,107(13,200,000)
40,234,648(6,500,000)

4,997,750(14,000,000)
12,925,779(13,100,000)–

8,953,594(4,000,000)
31,199,767(6,695,537)(17,847)
59,116,138(290,079)
13,090,361
12,800,282––(7,723,513)(32,598)(7,978,987)
3,385,171
12,800,282
16,185,454

Cash flows from operating activities
Profit before income taxes
Depreciation
Loss on retirement of non-current assets
Amortization of investment corporation bondissuance costs
Interest income and interest on securities
Interest expenses
Investment unit issuance expenses
Borrowing related expenses
Decrease (increase) in operating accounts receivable
Increase (decrease) in accrued consumption taxes
Decrease (increase) in prepaid expenses
Decrease in property, plant and equipment in trust
due to sale
Decrease in intangible assets in trust due to sale
Increase (decrease) in operating accounts payable
Increase (decrease) in accrued expenses
Increase (decrease) in advances received
Decrease (increase) in long-term prepaid expenses
Other, net
SubtotalInterest received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment in trust
Refund of leasehold and guarantee deposits received
in trust
Proceeds from leasehold and guarantee deposits
received in trust
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from short-term borrowings
Repayments of short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Proceeds from issuance of investment corporation
bonds
Redemption of investment corporation bonds
Proceeds from issuance of investment units
Distributions paid
Other, net
Net cash provided by (used in) financing activities
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period*1- 22 -*1

(6) Notes on Assumption of Going Concern
Not applicable.
(7) Notes on Important Accounting Policies
1. Method ofdepreciation of noncurrent assets(1) Property, plant and equipment (including trust assets)
The straight-line method is used.
The useful lives of major property, plant and equipment are listed below.
Buildings
2 to 70 years
Structures
2 to 66 years
Machinery and equipment
2 to 33 years
Tools, furniture and fixtures
2 to 15 years(2) Intangible assets
Internal use software is amortized by the straight-line method over the
expected useful life (5 years).
(3) Long-term prepaid expenses
The straight-line method is used.

2. Accounting methodfor deferred assets(1) Investment unit issuance expenses
The full amount is recorded as expenses when incurred.
(2) Investment corporation bond issuance costs
Amortized by the straight-line method over the period until maturity.

Property-related taxes
3. Accounting forincome and expenses
For property tax, city planning tax, depreciable asset tax for real properties
held, the amount of tax levied corresponding to the calculation period isrecorded as expenses related to leasing business.
The settlement money for property tax that is paid to the transferor for
acquisition of real properties (so-called “amount equivalent to propertytax”) is not recorded as expenses related to leasing business but included in
the acquisition costs for the related properties. There is no amountequivalent to property tax included in acquisition cost for properties for thecurrent fiscal period.
4. Method of hedge
accounting(1) Method of hedge accounting
Deferred hedge accounting is applied. For interest rate swaps that satisfy
the requirements for special treatment, special treatment is applied.
(2) Hedging instruments and hedged items
Hedging instruments: Interest rate swaps transactions
Hedged items: Long-term borrowings(3) Hedging policy
Based on the management policy of financial market risks, the Investment
Corporation makes interest rate swaps for the purpose to hedge risks set
forth in the Articles of Incorporation of the Investment Corporation.
(4) Method of assessing hedge effectiveness
The Investment Corporation assesses hedge effectiveness by comparing
the cumulative total changes in the cash flows of the hedged items withthose of the hedging instruments, and then verifying the ratio of thechanges in both amounts. However, hedge effectiveness is deemed tohave been ensured with respect to interest rate swaps that satisfy therequirements for special treatment.

- 23 -

5. Scope of cash (cash Cash and cash equivalents include cash on hand, cash in trust, demandand cash equivalents) deposits, deposits in trust, and highly liquid short-term investments that arein the statement ofreadily convertible, bear little risk in price fluctuations, and mature withincash flows
three months of the date of acquisition.
6. Other important(1) Accounting method for trust beneficiary interest with real estate, etc. as
matters related to thetrust asset
preparation ofWith regard to trust beneficiary interest with real estate, etc. in holding as
financial statements
trust asset, all assets and liabilities as well as all revenue and expense items
associated with all trust assets are accounted for under the respective
account items of the balance sheet and statement of income.
Of the trust assets accounted for under the respective account items, thefollowing items with significance are separately indicated on the balance
sheet.
i) Cash and deposits in trustii) Buildings in trust; structures in trust; machinery and equipment intrust; tools, furniture and fixtures in trust; land in trust; construction inprogress in trust; and land leasehold interests in trustiii) Leasehold and guarantee deposits received in trust(2) Accounting method for consumption tax and local consumption tax
Consumption tax and local consumption tax are accounted for by the taxexclusion method. Consumption taxes unqualified for deduction for tax
purposes for non-current assets, etc. are included in acquisition cost foreach asset.
Additional information
Notes on Provision and Reversal of Allowance for Temporary Difference Adjustments
Previous fiscal period (From December 1, 2018 to May 31, 2019)
1.

2.

Reason for Provision, Related Assets, etc. and Amount of Provision

Related assets, etc.

Reason for provision

Deferred gains or losses on hedges

Recognition of loss on valuationof interest rate swaps(Unit: Thousands of yen)
Allowance fortemporary difference
adjustments
10,797

Specific Method of Reversal
Deferred gains or losses on hedges
The reversal is to accord with changes in fair value of derivative transactions that are the hedging
instruments.

Current fiscal period (From June 1, 2019 to November 30, 2019)1.

Reason for Reversal, Related Assets, etc. and Amount of Reversal

Related assets, etc.

Reason for reversal

Deferred gains or losses on hedges

Elimination of loss on valuationof interest rate swaps- 24 -(Unit: Thousands of yen)
Allowance fortemporary difference
adjustments(10,797)2.

Specific Method of Reversal
Deferred gains or losses on hedges
The reversal is to accord with changes in fair value of derivative transactions that are the hedging
instruments.

(8) Notes to Financial Statements
Notes to Balance Sheet
1. Commitment Line Contracts
The Investment Corporation has the commitment line contracts with three of the banks with which it does
business.
As of May 31, 2019
Total amount specified in the commitmentline contracts¥21,000,000 thousand¥21,000,000 thousand––¥21,000,000 thousand¥21,000,000 thousand

Loan balance
Net balance

As of November 30, 2019

*2. Minimum Net Assets Stipulated in Article 67, Paragraph 4 of the Act on Investment Trusts andInvestment Corporations
As of May 31, 2019
¥50,000 thousand

As of November 30, 2019
¥50,000 thousand*3. Allowance for Temporary Difference Adjustments
Previous fiscal period (From December 1, 2018 to May 31, 2019)
Not applicable.
Current fiscal period (From June 1, 2019 to November 30, 2019)1.

Reason for Provision and Reversal, Related Assets, etc. and Amount of Provision(Unit: Thousands of yen)
Balance at Amount of Amount of Balance at
RelatedReason for
InitialReason for
beginning provision reversal
end ofassets, etc.
provisionamountreversalof period for period for period period
Recognition
Deferredof loss on
gains orvaluation of
10,797–
10,797–
10,797–
losses oninterest rate
hedgesswaps

2.

Specific Method of Reversal
Deferred gains or losses on hedges
The reversal is to accord with changes in fair value of derivative transactions that are the hedging
instruments.

- 25 -

Notes to Statement of Income*1. Breakdown of Profit (Loss) from Real Estate Leasing Business
Previous fiscal period(From December 1, 2018
to May 31, 2019)(Unit: Thousands of yen)
Current fiscal period(From June 1, 2019
to November 30, 2019)12,235,271

12,896,071

Common service fees

836,999754,640

Parking lot fees

291,993295,863

Other rent revenue

108,110

A. Real estate leasing businessrevenues
Leasing business revenue
Rent

B.

13,472,375

116,997

14,063,573

Other leasing business revenue

1,030,063

1,136,219

Total real estate leasing businessrevenues

14,502,439

15,199,792

Real estate leasing business
expenses
Expenses related to leasing
business
Management operation
expenses

1,235,835

1,252,752

Utilities expenses

940,529

1,011,981

Tax and public dues

998,158

1,087,694

9,402

11,227

189,963436,542

1,294,914

1,298,804

Loss on retirement of noncurrent assets

3,793

–

Other expenses related toleasing business

300,981

Insurance
Repair and maintenanceexpenses
Depreciation

C.

4,973,578

365,5425,464,545

Total real estate leasing business
expenses

4,973,578

5,464,545

Profit (loss) from real estateleasing business (A – B)

9,528,861

9,735,247- 26 -

*2.

Breakdown of Gain (Loss) on Sales of Real Estate Properties
Previous fiscal period (From December 1, 2018 to May 31, 2019)(Unit: Thousands of yen)
A-FLAG AKASAKA (50% co-ownership interest)
1,875,000
Income from sales of real estate properties
1,532,587
Costs of sales of real estate properties
1,361
Other costs of sales
341,051
Gain on sales of real estate properties
Current fiscal period (From June 1, 2019 to November 30, 2019)(Unit: Thousands of yen)
A-FLAG AKASAKA (50% co-ownership interest)
1,875,000
Income from sales of real estate properties
1,530,575
Costs of sales of real estate properties
1,360
Other costs of sales
343,063
Gain on sales of real estate properties

Notes to Statement of Unitholders’ Equity
Previous fiscal period(From December 1, 2018
to May 31, 2019)

Current fiscal period(From June 1, 2019
to November 30, 2019)*1. Total number of authorized investment units
and total number of investment units issued
Total number of authorized investment units
Total number of investment units issued

4,000,000 units

4,000,000 units

771,224 units

771,224 units

Notes to Statement of Cash Flows*1. Reconciliation between Cash and Cash Equivalents at End of Period and the Amount on the Balance
Sheet
Previous fiscal period(From December 1, 2018
to May 31, 2019)

Current fiscal period(From June 1, 2019
to November 30, 2019)

Cash and deposits¥9,257,380 thousand¥12,670,027 thousand

Cash and deposits in trust¥3,542,901 thousand¥3,515,426 thousand

Cash and cash equivalents¥12,800,282 thousand¥16,185,454 thousand- 27 -

Notes on Financial Instruments
1. Matters Regarding Financial Instruments(1) Policy for Financial Instruments
The Investment Corporation raises funds by borrowing, issuing investment corporation bonds, or issuinginvestment units for the purpose of acquiring real estate-related assets and repaying interest-bearing debt.
When raising funds, the Investment Corporation aims to sustain stable financing capability for a long time
at low cost by enhancing its capital adequacy and maintaining conservative interest-bearing debt, looking
for attributes such as extended borrowing periods for interest-bearing debt, fixed interest rates, anddiversified due dates to ensure financial stability and avoid the risk of interest-rate hikes.
We also invest temporary excess funds in deposits in general, taking safety and liquidity, etc. into accountand carefully considering the interest-rate environment and our cash management.
We may carry out derivatives transactions for the purpose of hedging the interest-rate risk of borrowings
and other risks, but do not engage in speculative transactions.
(2) Content and Risks of Financial Instruments and Risk Management System
As the excess funds of the Investment Corporation are invested in deposits, they are exposed to credit
risks such as the insolvency of the financial institutions in which the excess funds are deposited. However,
we deposit excess funds carefully by limiting the period of deposits to the short term, taking safety andliquidity, etc. into account and carefully considering the financial environment and our cash management.
Borrowings and investment corporation bonds are mainly for the purpose of acquiring real estate andrefinancing of existing borrowings. Leasehold and guarantee deposits received are deposits provided bytenants. Borrowings, investment corporation bonds, leasehold and guarantee deposits received are
exposed to liquidity risks at the time of repayment or redemption. However, these risks are managed
through management of liquidity in hand by preparing a monthly funding plan, efforts to reduce liquidity
risk on borrowings and investment corporation bonds by diversifying repayment periods, etc., and othermeans.
Floating-rate borrowings are also exposed to the risk of fluctuations in interest-rates. However, these risks
are managed through derivative transactions (interest rate swaps) as hedging instruments in certain
floating-rate borrowings.
(3) Supplemental Remarks on the Fair Value of Financial Instruments
The fair value of financial instruments is based on market prices or reasonably calculated value if it has nomarket price. As certain assumptions are made in calculating these values, if different assumptions, etc.
are used, these values could vary.
2. Matters Regarding Fair Values of Financial Instruments
Carrying amounts, fair values, and the differences between the two values as of May 31, 2019, are as shown
below. Financial instruments whose fair value is considered to be extremely difficult to determine are notincluded in this table (please refer to (Note 2)).
(Unit: Thousands of yen)
Carrying amount
Fair value
Difference(1) Cash and deposits

9,257,380

9,257,380–(2) Cash and deposits in trust

3,542,901

3,542,901–

Total assets

12,800,282

12,800,282–(1) Short-term borrowings

14,000,000

14,000,000–(2) Current portion of investment
corporation bonds

6,000,000

6,003,546

3,546(3) Current portion of long-termborrowings

20,400,000

20,446,855

46,855(4) Investment corporation bonds

8,000,000

8,327,254

327,254(5) Long-term borrowings

185,950,000

188,220,631

2,270,631

Total liabilities

234,350,000

236,998,287

2,648,287(11,474)(11,474)–

Derivative transactions- 28 -

Carrying amounts, fair values, and the differences between the two values as of November 30, 2019, are asshown below. Financial instruments whose fair value is considered to be extremely difficult to determine
are not included in this table (please refer to (Note 2)).
Carrying amount

Fair value(Unit: Thousands of yen)
Difference(1) Cash and deposits

12,670,027

12,670,027–(2) Cash and deposits in trust

3,515,426

3,515,426–

Total assets

16,185,454

16,185,454–(1) Short-term borrowings

5,000,000

5,000,000–(2) Current portion of investment
corporation bonds

6,000,000

6,004,836

4,836(3) Current portion of long-termborrowings

7,300,000

7,320,691

20,691(4) Investment corporation bonds

17,000,000

17,504,805

504,805(5) Long-term borrowings

199,050,000

201,308,615

2,258,615

Total liabilities

234,350,000

237,138,949

2,788,949

8,954

8,954

–

Derivative transactions(Note 1) Measurement Methods for Fair Values of Financial Instruments
Assets(1) Cash and deposits, (2) Cash and deposits in trust
The book value is used as the fair value of these assets, given that the fair value is almost the same as
the book value, as it is settled in a short time.
Liabilities(1) Short-term borrowings
The book value is used as the fair value of these liabilities, given that the fair value is almost the sameas the book value, as it is settled in a short time.
(2) Current portion of investment corporation bonds, (4) Investment corporation bonds
These fair values are determined by discounting the total of principal and interest at a rate taking into
account the remaining period and credit risk of the said investment corporation bonds.
(3) Current portion of long-term borrowings, (5) Long-term borrowings
These fair values are determined by discounting the total of principal and interest at the rate assumed
when a new loan is made corresponding to the remaining period. The book value is used as the fairvalue of those borrowings with floating interest rate, given that the fair value is almost the same as thebook value, as their interest rates are reviewed on a short-term interval to reflect market interest rates(however, for long-term borrowings with floating interest rate to which special treatment for interest
rate swaps is applied, the fair value is the value calculated by discounting the sum of principal andinterest, which are treated in combination with the said interest rate swap, at a reasonable rateestimated for a similar new loan).
Derivative transactions
Please refer to “Notes on Derivative Transactions” on pages 31 and 32.

- 29 -

(Note 2) Carrying Amounts of Financial Instruments Whose Fair Value Is Considered to Be Extremely
Difficult to Determine
Category

As of May 31, 2019

Leasehold and guarantee
deposits received in trust **(Unit: Thousands of yen)
As of November 30, 201921,239,977

21,543,424

As there are no market prices for leasehold and guarantee deposits received in trust from tenants forleasehold properties and the actual period of deposit from move-in of the tenant to move-out isdifficult to determine, it is extremely difficult to reasonably estimate the cash flow. Therefore, the fairvalue for leasehold and guarantee deposits received in trust is not subject to the disclosure of fairvalue.

(Note 3) Expected Amounts of Redemption of Monetary Claims after the Account Closing Date
(May 31, 2019)
Within1 year

1–2 years

2–3 years(Unit: Thousands of yen)Over
3–4 years 4–5 years
5 years

Deposits

9,257,380

–

–

–

–

–

Deposits in trust

3,542,901

–

–

–

–

–

Total

12,800,282

–

–

–

–

–

Expected Amounts of Redemption of Monetary Claims after the Account Closing Date
(November 30, 2019)
Within1 year

1–2 years

2–3 years(Unit: Thousands of yen)Over
3–4 years 4–5 years
5 years

Deposits

12,670,027

–

–

–

–

–

Deposits in trust

3,515,426

–

–

–

–

–

Total

16,185,454

–

–

–

–

–

(Note 4) Expected Amounts of Repayment of Borrowings and Investment Corporation Bonds after the
Account Closing Date (May 31, 2019)
Within1 year

1–2 years

2–3 years(Unit: Thousands of yen)Over
3–4 years 4–5 years
5 years

Short-term borrowings

14,000,000

–

–

–

–

–

Investment corporation
bonds

6,000,000––

1,000,000–

7,000,000

Long-term borrowings

20,400,000 12,500,000 22,850,000 26,500,000 25,750,000

98,350,000

Total

40,400,000 12,500,000 22,850,000 27,500,000 25,750,000 105,350,000- 30 -

Expected Amounts of Repayment of Borrowings and Investment Corporation Bonds after the
Account Closing Date (November 30, 2019)
Within1 year

1–2 years

2–3 years(Unit: Thousands of yen)Over
3–4 years 4–5 years
5 years

Short-term borrowings

5,000,000–––

Investment corporation
bonds

6,000,000–

1,000,000–

Long-term borrowings

7,300,000 26,250,000 21,100,000 27,750,000 24,500,000 99,450,000

Total

–

–

5,000,000 11,000,000

18,300,000 26,250,000 22,100,000 27,750,000 29,500,000 110,450,000

Notes on Derivative Transactions
1. Derivative Transaction to Which Hedge Accounting Is Not Applied(As of May 31, 2019)
Not applicable.
(As of November 30, 2019)
Not applicable.
2. Derivative Transaction to Which Hedge Accounting Is Applied(As of May 31, 2019)
The following table shows contract amount or principal amount, etc. set forth in the contract as of theaccount closing date by method of hedge accounting.
(Unit: Thousands of yen)Hedge
accounting

Type ofderivativetransactions

Deferred hedge
accounting

Interest rate
swaps
Receive floating
Pay fixed

Interest rate
Special treatment
swaps
for interest rate
Receive floating
swaps
Pay fixed

Major
hedgeditems

Amount of contract
Fair value

Calculation
method forfair value

Long-term
14,400,000 12,000,000
borrowings(11,474)

Based onprices, etc.
indicated bypartnerfinancial
institutions

Long-term
18,140,000 18,140,000
borrowings*–- 31 -

Portion due
after 1 year

(As of November 30, 2019)
The following table shows contract amount or principal amount, etc. set forth in the contract as of theaccount closing date by method of hedge accounting.
(Unit: Thousands of yen)Hedge
accounting

Type ofderivativetransactions

Deferred hedge
accounting

Interest rate
swaps
Receive floating
Pay fixed

Major
hedgeditems

Amount of contract
Portion due
after 1 year

Long-term
12,000,000 12,000,000
borrowings

Fair value

Calculation
method forfair value

8,954

Based onprices, etc.
indicated bypartnerfinancial
institutions

Interest rate
Special treatment
Long-term
swaps
for interest rate
18,140,000 18,140,000*–
Receive floating borrowings
swaps
Pay fixed* Interest rate swap transactions to which special treatment is applied are accounted for as an integral
part of long-term borrowings, a hedged item. Thus, their fair values are included in the fair value of
long-term borrowings. (Please refer to the preceding “Notes on Financial Instruments, 2. Matters
Regarding Fair Values of Financial Instruments, (Note 1) Liabilities (5)” on page 29.)
Notes on Tax Effect Accounting
1. Components of Deferred Tax Assets and Deferred Tax Liabilities
As of May 31, 2019

As of November 30, 2019

Deferred tax assets
Non-deductible amount for tax purposesof enterprise tax payable¥24 thousand¥5 thousand

Total deferred tax assets¥24 thousand¥5 thousand¥24 thousand¥5 thousand

Net deferred tax assets

2. Reconciliation of Significant Difference between Effective Statutory Tax Rate and Effective Income Tax
Rate after Application of Tax Effect Accounting
As of May 31, 2019
Effective statutory tax rate

As of November 30, 201931.51%

31.51%(31.50)%(31.51)%

0.00%

0.01%

0.01%

0.01%

Adjustments
Distributions paid included indeductibles
Other
Effective income tax rate after applicationof tax effect accounting- 32 -

Notes on Transactions with Related Parties
Previous fiscal period (From December 1, 2018 to May 31, 2019)
Not applicable.
Current fiscal period (From June 1, 2019 to November 30, 2019)
Not applicable.
Notes on Investment and Rental Properties
The Investment Corporation holds Urban Retail and Tokyo Office properties, etc. in Tokyo and other regions
for rental revenue. The carrying amounts on the balance sheet, changes during the fiscal period, and fairvalues of investment and rental properties are as follows.
(Unit: Thousands of yen)Previous fiscal period
Current fiscal period(From December 1, 2018
(From June 1, 2019
to May 31, 2019)
to November 30, 2019)

Use
Carrying amount on the balance sheet
Urban Retail
Properties

Balance at beginning of period

151,044,711

200,524,577

Changes during period

49,479,865(1,642,755)

Balance at end of period

200,524,577

198,881,821

242,147,000

241,282,000

195,900,898

195,556,130

Changes during period(344,767)(454,598)

Balance at end of period

195,556,130

195,101,532

228,760,000

232,420,000

Balance at beginning of period

83,038,644

102,739,890

Changes during period

19,701,246(91,462)

Balance at end of period

102,739,890

102,648,428

119,660,000

120,550,000

Balance at beginning of period

429,984,254

498,820,598

Changes during period

68,836,344(2,188,816)

Balance at end of period

498,820,598

496,631,782

590,567,000

594,252,000

Fair value at end of period
Carrying amount on the balance sheet
Balance at beginning of periodTokyo Office
Properties

Fair value at end of period
Carrying amount on the balance sheet
Activia
Account
Properties

Fair value at end of period
Carrying amount on the balance sheet
Total

Fair value at end of period(Note 1) The carrying amount on the balance sheet is the acquisition cost less accumulated depreciation.
(Note 2) The main reason for the decrease in the current fiscal period is the transfer of A-FLAG AKASAKA
worth ¥1,530,575 thousand and the provision of depreciation worth ¥1,298,804 thousand.
(Note 3) The fair value at end of period is the appraisal value provided by an outside real estate appraiser.
The profit/loss concerning investment and rental properties for the current fiscal period is indicated under“Notes to Statement of Income.”- 33 -

Per Unit Information
Previous fiscal period(From December 1, 2018
to May 31, 2019)

Current fiscal period(From June 1, 2019
to November 30, 2019)

Net assets per unit

¥332,050¥332,196

Basic earnings per unit

¥10,118¥10,136(Note 1) Basic earnings per unit is calculated by dividing profit by the day-weighted average number ofinvestment units for the period (previous fiscal period 763,508 units; current fiscal period 771,224
units). Diluted earnings per unit is not stated, as there is no potential investment unit.
(Note 2) The basis for calculating basic earnings per unit is as follows:
Previous fiscal period(From December 1, 2018
to May 31, 2019)

Current fiscal period(From June 1, 2019
to November 30, 2019)

7,725,832

7,817,677––

Profit attributable to common investment units(Thousands of yen)

7,725,832

7,817,677

Average number of investment units for theperiod (Units)763,508771,224

Profit (Thousands of yen)Amount not attributable to common
unitholders (Thousands of yen)

Significant Subsequent Events
Not applicable.
Omission of Disclosure
As the need for disclosing notes on lease transactions, securities, retirement benefits, equity in earnings ofaffiliates, asset retirement obligations, and segment information in this financial report is not considered to be
substantial, the disclosure of these items is omitted.

- 34 -

(9) Changes in Total Number of Investment Units Issued and Outstanding
There are no capital increases, etc. for the current fiscal period. The overview of capital increases, etc. inand before the previous fiscal period is as follows:

Date

Summary

Total investments(Thousands of yen)
ChangeBalance

Total number ofinvestment units
issued(Units)ChangeRemarks

Balance

September 7, 2011

Establishment
through private
placement

200,000

200,000400

400 (Note 1)

June 12, 2012

Capital increase
through public
offering

90,834,705

91,034,705

204,100

204,500 (Note 2)

July 10, 2012

Capital increase
through thirdparty allotment

339,128

91,373,833

762

205,262 (Note 3)

December 16,
2013

Capital increase
through public
offering

32,636,569 124,010,403

43,100248,362 (Note 4)

January 15, 2014

Capital increase
through thirdparty allotment

2,044,518 126,054,921

2,700

251,062 (Note 5)

December 17,
2014

Capital increase
through public
offering

22,800,626 148,855,547

24,050275,112 (Note 6)

January 8, 2015

Capital increase
through thirdparty allotment

1,915,063 150,770,610

2,020

277,132 (Note 7)

October 1, 2015

Investment unit
split

– 150,770,610

277,132554,264 (Note 8)

December 15,
2015

Capital increase
through public
offering

19,152,091 169,922,702

41,870596,134 (Note 9)

January 6, 2016

Capital increase
through thirdparty allotment

1,610,111 171,532,813

3,520

599,654 (Note 10)

December 1, 2016

Capital increase
through public
offering

28,583,994 200,116,808

61,040660,694 (Note 11)

December 15,
2016

Capital increase
through thirdparty allotment

2,116,639 202,233,447

4,520

665,214 (Note 12)

December 13,
2017

Capital increase
through public
offering

13,793,296 216,026,743

31,090696,304 (Note 13)

December 26,
2017

Capital increase
through thirdparty allotment

1,064,776 217,091,520

2,400

698,704 (Note 14)

December 19,
2018

Capital increase
through public
offering

29,036,462 246,127,982

67,320766,024 (Note 15)

January 7, 2019

Capital increase
through thirdparty allotment

2,242,864 248,370,846

5,200

771,224 (Note 16)- 35 -

(Note 1) The Investment Corporation was established with an offering price per unit of ¥500,000.
(Note 2) New investment units were issued by public offering with an offering price per unit of ¥460,000(paid-in amount of ¥445,050 per unit) in order to raise funds for the acquisition of new
properties, etc., and then investment operations were commenced.
(Note 3) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥445,050 per unit.
(Note 4) New investment units were issued by public offering with an offering price per unit of ¥782,925(paid-in amount of ¥757,229 per unit) in order to raise funds for the acquisition of new
properties, etc.
(Note 5) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥757,229 per unit.
(Note 6) New investment units were issued by public offering with an offering price per unit of ¥979,020(paid-in amount of ¥948,051 per unit) in order to raise funds for the acquisition of new
properties.
(Note 7) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥948,051 per unit.
(Note 8) A two-for-one split of the investment units has been implemented, with September 30, 2015 as
the record date and October 1, 2015 as the effective date.
(Note 9) New investment units were issued by public offering with an offering price per unit of ¥472,360(paid-in amount of ¥457,418 per unit) in order to raise funds for the acquisition of new
properties, etc.
(Note 10) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥457,418 per unit.
(Note 11) New investment units were issued by public offering with an offering price per unit of ¥483,326(paid-in amount of ¥468,283 per unit) in order to raise funds for the acquisition of new
properties.
(Note 12) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥468,283 per unit.
(Note 13) New investment units were issued by public offering with an offering price per unit of ¥458,150(paid-in amount of ¥443,657 per unit) in order to raise funds for the acquisition of new
properties.
(Note 14) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥443,657 per unit.
(Note 15) New investment units were issued by public offering with an offering price per unit of ¥445,410(paid-in amount of ¥431,320 per unit) in order to raise funds for the acquisition of new
properties.
(Note 16) New investment units were issued through a private placement to Nomura Securities Co., Ltd.
with a paid-in amount of ¥431,320 per unit.
(Note 17) The above does not take into account the changes in unitholders’ capital arising from theimplementation of distributions in excess of net earnings from allowance for temporary
difference adjustments.

- 36 -

3. Reference Information(1) Composition of Invested Assets

Type ofassetsPrevious fiscal period

Current fiscal period(As of May 31, 2019)(As of November 30, 2019)

Total amount
held(Millions ofyen)(Note 1)

Percentage tototal assets

Total amount
held(Millions ofyen)(Note 1)

Percentage tototal assets

Urban Retail Properties

–

–

–

–

Tokyo Office Properties

–

–

–

–

Activia Account Properties

–

–

–

–

The five central wards ofTokyo (Note 3)

–

–

–

–

Wards of Tokyo other than
the five central wards

–

–

–

–

Three major metropolitan
areas (Note 4)

–

–

–

–

Other locations

–

–

–

–

Subtotal

–

–

–

–

Urban Retail Properties

200,524

39.0

198,881

38.6

Tokyo Office Properties

195,556

38.0

195,101

37.8

Activia Account Properties

102,739

20.0

102,648

19.9

The five central wards ofTokyo (Note 3)

316,270

61.5

314,262

61.0

Wards of Tokyo other than
the five central wards

33,095

6.4

33,079

6.4

Three major metropolitan
areas (Note 4)

138,395

26.9

138,100

26.8

Other locations

11,0592.2

11,1892.2

Subtotal

498,82097.0

496,631

96.3

Total real estate assets

498,82097.0

496,631

96.3

Deposits and other assets

15,5383.0

18,849

3.7

Total assets (Note 5)

514,359

100.0

515,480

100.0

Category(%)(Note 2)(%)
(Note 2)

By property type

By locationRealestateBy property type

By locationRealestate intrust- 37 -

Amount(Millions ofyen)

Percentage tototal assets(%)(Note 2)

Amount(Millions ofyen)

Percentage tototal assets(%)(Note 2)

Total liabilities (Notes 5, 6)

258,27350.2

259,282

50.3

Total net assets (Note 5)

256,08549.8

256,198

49.7(Note 1) The total amount held is based on the carrying amounts on the balance sheet as of the end ofeach fiscal period (for real estate and real estate in trust, book value less depreciation expenses),in accordance with the asset valuation method set forth in the Articles of Incorporation of theInvestment Corporation.
(Note 2) Figures are rounded to the nearest tenth.
(Note 3) “The five central wards of Tokyo” refers to Chiyoda ward (Chiyoda-ku), Chuo ward (Chuo-ku),
Minato ward (Minato-ku), Shinjuku ward (Shinjuku-ku) and Shibuya ward (Shibuya-ku) inTokyo.
(Note 4) “Three major metropolitan areas” refers to the Tokyo area (Tokyo, Kanagawa Prefecture,
Saitama Prefecture and Chiba Prefecture), the Chukyo area (Aichi Prefecture) and the Kinki
area (Osaka Prefecture, Kyoto Prefecture and Hyogo Prefecture); the same shall apply
hereinafter.
(Note 5) Total assets, total liabilities and total net assets represent the amounts reported in the balance
sheet as of the end of each fiscal period.
(Note 6) Total liabilities include the obligation to refund leasehold and guarantee deposits.
(2) Investment Assetsi) Major investment securities
Not applicable.
ii) Investment properties
Properties in trust held by the Investment Corporation are included in the below section “iii) Other
investment assets.”- 38 -

iii) Other investment assets(A) Overview of real estate and beneficiary interests of real estate in trust
The following table shows property name, acquisition price, book value at the end of the fiscal period,
assessed value at the end of the fiscal period, return price and investment ratio related to the assets
held by the Investment Corporation as of the end of the 16th fiscal period. Figures shown in the table
are as of November 30, 2019 unless otherwise provided.
a. Overview of assets held (1)(As of November 30, 2019)Urban Retail Properties

Category

Return price (Note 4)
Property
number(Note 1)

Property name

Direct capitalization
DCF method
methodBook value Assessed
Acquisition
Investment
at end ofvalue at Price based
price
ratio
on
directDirectPrice
based
Terminal
periodend ofDiscount
capitaliza- capitaliza- on DCF
capitalizaperiod
rate
tion
tion rate
methodtion rate
method(Millionsof yen)(Note 2)

(Millionsof yen)(Note 3)

(Millionsof yen)(Note 4)

(Millionsof yen)UR-1

Tokyu Plaza Omotesando
Harajuku (Note 6)

45,00044,70462,77563,525

2.6

61,950

2.3

2.7

9.0

UR-2

Tokyu Plaza Akasaka(Note 6)

11,45011,677

15,70016,0004.0

15,600

4.1

4.2

2.3

UR-3

Q plaza EBISU (Note 7)

8,430

8,215

11,90012,1003.2

11,8003.4/3.3

3.4

1.7

UR-5

Kyoto Karasuma Parking
Building

8,860

8,704

11,20011,300

4.8

11,200

4.8

5.0

1.8

UR-7

Kobe Kyu Kyoryuchi
25Bankan

21,33020,54927,40027,8003.8

27,000

3.6

4.0

4.3

UR-8

A-FLAG SAPPORO

4,410

4,865

7,250

7,240

5.4

7,250

5.2

5.6

0.9

UR-9

A-FLAG SHIBUYA(%)(Millionsof yen)

(%)

(%)

(%)
(Note 5)

6,370

6,343

8,110

8,140

3.9

8,090

3.7

4.1

1.3

UR-10 Q plaza SHINSAIBASHI

13,35013,412

14,70014,6003.6

14,800

3.4

3.8

2.7

UR-11 A-FLAG KOTTO DORI

4,370

4,394

5,020

5,060

3.4

5,000

3.1

3.5

0.9

A-FLAG BIJUTSUKAN
UR-12
DORI

4,700

4,711

4,860

4,940

3.5

4,770

3.3

3.7

0.9

A-FLAG DAIKANYAMA
UR-13
WEST

2,280

2,348

2,400

2,430

3.9

2,360

3.7

4.1

0.5

A-FLAG KITA
UR-14
SHINSAIBASHI

4,725

4,837

4,780

4,890

3.9

4,670

3.6

4.0

0.9

DECKS Tokyo Beach
UR-15(Note 6)

12,74012,892

12,887

13,0834.0

12,642

3.8

4.2

2.6

UR-16

Tokyu Plaza Ginza (Land)(Notes 6, 8)

37,50037,89539,00038,7002.6

39,000

2.5

–

7.5

UR-17

Q plaza HARAJUKU(Note 6)

13,20013,32813,30013,4403.0

13,140

2.7

3.1

2.6

198,715

198,881

241,282

243,248–239,272

–

–

39.8

Subtotal- 39 -

Tokyo Office Properties

Category

Return price (Note 4)
Property
number(Note 1)

Direct capitalization
methodProperty name(Millionsof yen)(Note 2)

(Millionsof yen)(Note 3)

(Millionsof yen)(Note 4)

(Millionsof yen)(%)(Millionsof yen)

(%)

(%)

(%)
(Note 5)

TO-1

TLC Ebisu Building

7,400

7,205

11,80011,9003.6

11,700

3.7

3.8

1.5

TO-2

A-PLACE Ebisu Minami

9,640

9,364

15,20015,4003.5

15,100

3.6

3.7

1.9

TO-3

A-PLACE Yoyogi

4,070

3,876

4,970

5,050

3.9

4,890

3.7

4.1

0.8

TO-4

A-PLACE Aoyama

8,790

8,577

10,40010,4003.9

10,400

3.7

4.1

1.8

TO-5

Luogo Shiodome

4,540

4,206

6,570

6,630

3.5

6,550

3.3

3.7

0.9

TO-6

TAMACHI SQUARE(Land)

2,338

2,362

3,000

3,140

3.4

2,940

3.8

3.6

0.5

TO-7

A-PLACE Ikebukuro

3,990

3,716

5,270

5,350

3.9

5,180

3.7

4.1

0.8

TO-8

A-PLACE Shinbashi

5,650

5,819

7,250

7,320

3.7

7,180

3.4

3.8

1.1

TO-9

A-PLACE Gotanda

5,730

5,475

7,970

8,100

3.5

7,830

3.3

3.7

1.1

TO-10 A-PLACE Shinagawa

3,800

3,779

5,430

5,540

3.4

5,320

3.2

3.6

0.8

TO-11 OSAKI WIZTOWER

10,69010,616

14,60014,8003.3

14,500

3.0

3.4

2.1

Shiodome Building(Note 6)

71,60070,89177,70082,2503.3

75,950

3.1

3.5

14.3

TO-13 A-PLACE Ebisu Higashi

7,072

7,066

7,720

7,840

3.7

7,600

3.5

3.9

1.4

4,810

4,945

5,680

5,680

3.6

5,670

3.3

3.7

1.0

7,280

7,541

7,860

7,910

3.8

7,810

3.5

3.9

1.5

18,80018,832

20,60020,9003.8

20,200

3.6

4.0

3.8

20,50020,822

20,40020,4003.6

20,400

3.2

3.6

4.1

TO-12

A-PLACE Shibuya
KonnohA-PLACE Gotanda
TO-15
EkimaeA-PLACE Shinagawa
TO-16
HigashiA-PLACE Shinbashi
TO-17
EkimaeTO-14

Subtotal

Activia Account Properties

DCF method
Book value Assessed
Acquisition
Investment
at end ofvalue at Price based
price
ratio
Direct Price based
Terminal
on direct
periodend ofDiscount
capitalizaon
DCF
capitalizacapitalizaperiod
ratetion rate
methodtion ratetion
method196,700

195,101

232,420

238,6103.5

229,220

–

–

39.4

AA-1

Amagasaki Q’s MALL
(Land)

12,00012,113

14,20014,4004.2

14,000

3.9

4.4

2.4

AA-2

icot Nakamozu (Note 9)

8,500

8,068

10,900

11,2004.8

10,800

4.7
/4.8
/4.9

5.0

1.7

AA-4

icot Mizonokuchi

2,710

2,612

3,240

3,310

5.4

3,160

5.2

5.8

0.5

AA-5

icot Tama Center

2,840

2,609

4,000

4,010

5.0

3,990

4.6

5.2

0.6

AA-6

A-PLACE Kanayama

6,980

6,282

8,830

8,960

5.1

8,690

4.9

5.3

1.4

AA-7

Osaka Nakanoshima
Building

11,10010,972

15,20015,4003.8

15,000

3.6

4.0

2.2

AA-8

icot Omori

5,790

5,729

6,870

6,940

4.3

6,800

4.1

4.5

1.2

AA-9

Market Square Sagamihara

4,820

4,661

5,010

5,030

5.3

4,980

5.1

5.5

1.0

AA-10 Umeda Gate Tower

19,00019,302

21,40021,9003.7

21,200

3.4

3.8

3.8

AA-11 A-PLACE Bashamichi

3,930

3,976

4,610

4,680

4.8

4,530

4.5

5.0

0.8

AA-12 Commercial Mall Hakata

6,100

6,323

6,290

6,310

4.8

6,270

4.5

4.9

1.2

AA-13 EDGE Shinsaibashi

19,80019,99420,00020,1003.8

19,800

3.5

3.9

4.0

(Note 1)

(Note 2)

(Note 3)(Note 4)

Subtotal

103,570

102,648

120,550

122,240–

119,220

–

–

20.8

Total

498,985496,631594,252

604,098–

587,712

–

–

100.0

A property number is assigned to each of assets held by the Investment Corporation, which are divided into the three
categories: UR (meaning Urban Retail Properties), TO (meaning Tokyo Office Properties) and AA (meaning Activia
Account Properties).
Acquisition price represents trading value of beneficiary interests in trust stipulated in each beneficiary interest sales
agreement in relation to the assets held (excluding consumption tax and local consumption tax, and expenses such as
trading commissions, rounding down to the nearest million yen).
Book value at end of period represents book value for each property less depreciation expenses as of November 30,
2019, rounding down to the nearest million yen.
The appraisal of properties is commissioned to Japan Real Estate Institute, Daiwa Real Estate Appraisal Co., Ltd.,The Tanizawa Sōgō Appraisal Co., Ltd., Japan Valuers Co., Ltd. or JLL Morii Valuation & Advisory K.K. Assessedvalue at end of period and return price show value described in each real estate appraisal report with the date of value
estimate of November 30, 2019.
- 40 -

(Note 5)(Note 6)(Note 7)(Note 8)(Note 9)Investment ratio is calculated by dividing the acquisition price for each property by the total acquisition price(excluding consumption tax and other acquisition-related expenses). Figures are rounded to the nearest tenth.
As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land),Q plaza HARAJUKU, and Shiodome Building, the figures are in proportion to the pro rata share of our trust
beneficiary co-ownership interests (jun kyōyū-mochibun) (75%, 50%, 49%, 30%, 60% and 35%, respectively).
The discount rates of Q plaza EBISU represent 3.4% from the first year to the fourth year and 3.3% in and after thefifth year.
The price based on direct capitalization method stated for Tokyu Plaza Ginza (Land) has been calculated by means of
the fixed term capitalization method.
The discount rates of icot Nakamozu represent 4.7% from the first year to the third year, 4.8% from the fourth year to
the eighth year and 4.9% in and after the ninth year.

- 41 -

b. Overview of assets held (2)Category(As of November 30, 2019)
Property
number

Property nameLocation

Date ofconstruction(Note 1)

(Note 2)

(Millions of (Millions of
yen)
yen)
(Note 3)(Note 4)

Total
Total leased
leasable area
area

Occupancy
rate

(m2)
(Note 5)(m2)
(Note 6)(%)(Note 7)

UR-1

Tokyu Plaza
Omotesando
Shibuya, Tokyo
Harajuku (Note 8)

March 14, 2012

35

2,067

1,702

4,918.44

4,918.44

100.0

UR-2

Tokyu Plaza
Akasaka (Note 8)

Chiyoda, Tokyo

September 10,
1969

95

961

400

16,609.75

16,601.06

99.9

UR-3

Q plaza EBISU

Shibuya, Tokyo

August 20, 2008

4

485

475

4,024.88

4,024.88

100.0

UR-5

Kyoto Karasuma
Parking Building

Kyoto, Kyoto

July 24, 2006

2

(Note 9)(Note 9)21,616.04

21,616.04

100.0

Kobe, Hyogo

January 31, 2010

7

1,254

1,431

19,653.90

19,653.90

100.0

Kobe Kyu
UR-7 Kyoryuchi
25Bankan

Urban Retail Properties

Number Contractedof
rent
tenants(Annual)Leaseholdandguarantee
deposit

UR-8

A-FLAGSAPPORO

Sapporo,Hokkaido

May 23, 1980

16

620

123

21,229.16

21,137.10

99.6

UR-9

A-FLAGSHIBUYA

Shibuya, Tokyo

June 29, 1988

2

420

179

3,403.07

3,403.07

100.0

UR-10

Q plaza
SHINSAIBASHI

Osaka, Osaka

November 16,
2007

6

671

433

2,820.23

2,820.23

100.0

UR-11

A-FLAG KOTTO
DORI

Minato, Tokyo

January 22, 1992

7

234

181

2,656.53

2,656.53

100.0

A-FLAG
UR-12 BIJUTSUKAN
DORI

Minato, Tokyo

December 1, 1998

4

239

241

1,994.65

1,994.65

100.0

A-FLAG
UR-13 DAIKANYAMA
WEST

Shibuya, Tokyo

April 21, 1992

1

(Note 9)(Note 9)2,579.08

2,579.08

100.0

UR-14

A-FLAG KITASHINSAIBASHI

Osaka, Osaka

March 25, 2008

5

187

125

2,536.75

2,536.75

100.0

UR-15

DECKS Tokyo
Beach (Note 8)

Minato, Tokyo

June 20, 1996

81

651

488

16,125.56

15,993.36

99.2

UR-16

Tokyu Plaza Ginza
Chuo, Tokyo(Land) (Note 8)

1

1,143

572

1,130.04

1,130.04

100.0

16

456

340

3,378.49

3,378.49

100.0

282

–

–

124,676.57

124,443.62

99.8

Q plaza
UR-17 HARAJUKU(Note 8)Subtotal

Shibuya, Tokyo–
March 5, 2015–

- 42 -

CategoryTokyo Office Properties

Property
number

Property nameLocation

Number Contractedof
rent
tenants(Annual)(Note 1)

(Note 2)

Leaseholdandguarantee
deposit(Millions of (Millions of
yen)
yen)
(Note 3)(Note 4)

Total
Total leased
leasable area
area

Occupancy
rate

(m2)
(Note 5)(m2)
(Note 6)(%)(Note 7)

TO-1

TLC Ebisu
Building

Shibuya, Tokyo

March 5, 1993

12

632

548

7,342.60

7,342.60

100.0

TO-2

A-PLACE Ebisu
MinamiShibuya, Tokyo

January 31, 1995

11

733

605

7,950.49

7,950.49

100.0

TO-3

A-PLACE Yoyogi Shibuya, Tokyo

February 22, 2007

3

251

231

3,106.17

3,106.17

100.0

TO-4

A-PLACE Aoyama Minato, Tokyo

September 6,
1966

8

568

534

7,303.69

7,303.69

100.0

TO-5

Luogo Shiodome

Minato, Tokyo

July 30, 2004

7

332

293

4,476.35

4,476.35

100.0

TO-6

TAMACHISQUARE(Land)

Minato, Tokyo

–

1

125

–

1,287.96

1,287.96

100.0

TO-7

A-PLACE
Ikebukuro

Toshima, Tokyo

October 13, 20111

(Note 9)(Note 9)3,409.73

3,409.73

100.0

TO-8

A-PLACE
Shinbashi

Minato, Tokyo

March 4, 1999

10

370

310

5,052.14

5,052.14

100.0

TO-9

A-PLACE Gotanda

Shinagawa,Tokyo

February 27, 2012

11

368

338

4,028.69

4,028.69

100.0

TO-10

A-PLACE
ShinagawaMinato, Tokyo

September 20,
1991

8

250

234

2,986.36

2,986.36

100.0

TO-11

OSAKI
WIZTOWER

Shinagawa,Tokyo

January 10, 2014

5

668

668

7,193.28

7,193.28

100.0

TO-12

Shiodome Building
Minato, Tokyo(Note 8)December 14,
2007

38

3,228

2,668

28,136.05

28,058.40

99.7

TO-13

A-PLACE Ebisu
Higashi

Shibuya, Tokyo

January 10, 1992

8

336

245

4,010.69

4,010.69

100.0

TO-14

A-PLACE Shibuya
Shibuya, Tokyo
KonnohMarch 18, 1992

4

225

155

2,995.72

2,995.72

100.0

TO-15

A-PLACE Gotanda Shinagawa,EkimaeTokyo

November 30,
1993

10

347

300

4,316.89

4,316.89

100.0

TO-16

A-PLACE
Minato, Tokyo
Shinagawa Higashi

August 31, 1985
(main building)
September 13,
1999 (annex)

9

989

894

14,658.98

14,658.98

100.0

TO-17

A-PLACE
Shinbashi Ekimae

April 25, 2008

6

781

600

6,484.57

6,484.57

100.0

–

152

–

–

114,740.36

114,662.71

99.9

AA-1

Amagasaki Q’s
MALL (Land)

Amagasaki,
Hyogo

–

1

714

341

27,465.44

27,465.44

100.0

AA-2

icot Nakamozu

Sakai, Osaka

June 27, 2007

2

619

430

28,098.02

28,098.02

100.0

AA-4

icot Mizonokuchi

Kawasaki,Kanagawa

July 15, 1998

1

(Note 9)100

14,032.05

14,032.05

100.0

AA-5

icot Tama Center

Tama, Tokyo

March 7, 2006

9

240

237

5,181.58

5,181.58

100.0

AA-6

A-PLACE
Kanayama

Nagoya, Aichi

February 10, 2009

21

528

427

9,314.90

9,314.90

100.0

AA-7

Osaka
Nakanoshima
Building

Osaka, Osaka

March 5, 1984

40

980

690

20,226.77

20,226.77

100.0

Ota, Tokyo

March 6, 2007

8

388

359

6,209.79(Note 10)

6,209.79(Note 10)

100.0

Sagamihara,
Kanagawa

June 13, 2014

3

(Note 9)(Note 9)15,152.42

15,152.42

100.0

AA-10 Umeda Gate Tower Osaka, Osaka

January 15, 2010

15

850

586

13,624.49

13,624.49

100.0

A-PLACE
AA-11
Bashamichi

Yokohama,
Kanagawa

May 31, 1975

34

330

219

9,775.50

9,775.50

100.0

Fukuoka,
Fukuoka

November 3, 2005

18

331

150

9,612.88

9,131.82

95.0

Minato, Tokyo

Subtotal

Activia Account Properties

Date ofconstruction

AA-8 icot Omori
AA-9

AA-12

Market Square
Sagamihara

Commercial Mall
HakataAA-13 EDGE Shinsaibashi Osaka, Osaka

23

932

720

15,897.64

15,897.64

100.0

Subtotal

April 22, 1986
–

175

–

–

174,591.48

174,110.42

99.7

Total

–

609

–

–

414,008.41

413,216.75

99.8- 43 -

(Note 1)

Date of construction of the main building, as described in the property registry. For properties with several mainbuildings, the construction date of the oldest building is listed. The construction date is omitted in case of acquisitionof land only (Land represents the part of site on which the building is established under a land lease right; the same
shall apply hereinafter). However, for A-PLACE Shinbashi and A-FLAG SHIBUYA, the date of inspection
confirming completion of construction written on the certificate of inspection is provided.
(Note 2) At each property, the number of tenants is equal to the aggregate number of tenants as of November 30, 2019
described in the lease agreements in relation to buildings, except that for properties with master lease agreements, thetotal number of end-tenants is listed. For properties for which we acquire only land, the total number of tenants of theland is listed.
(Note 3) The contracted rent (annual) for each property other than properties for which we acquire only land is calculated bymultiplying the aggregate anticipated monthly rent (limited to rent for rooms which were occupied by tenants as ofNovember 30, 2019), including common service fee and excluding usage fee for warehouses, signboards and parking
lots, and also excluding revenue-based rents, regardless of free rents and rent holidays as of November 30, 2019, as
indicated in the lease agreements in relation to buildings as of November 30, 2019 by 12 (for where multiple leaseagreements are concluded in relation to buildings, the aggregate anticipated monthly rent for all lease agreements)(excluding consumption tax) and rounding to the nearest million yen. For properties for which we acquire only land,
it is calculated as the annual contracted rent (excluding consumption tax) as indicated in the lease agreement for suchland as of November 30, 2019, rounding to the nearest million yen. For properties with master lease agreements, theannual contracted rent is calculated by multiplying the aggregate anticipated monthly rent (limited to rent for rooms;
including common service fees and excluding usage fees for warehouses, signboards and parking lots, and also
excluding revenue-based rents, regardless of free rents and rent holidays as of November 30, 2019), as indicated in
the relevant sublease agreement with end-tenants by 12.
(Note 4) The leasehold and guarantee deposit is calculated as the total amount on the lease agreement for each property as ofNovember 30, 2019 (limited to leasehold and guarantee deposit based on the lease agreement for leased property thatwas occupied by the tenant as of November 30, 2019), rounding to the nearest million yen. For properties with master
lease agreements, the leasehold and guarantee deposit is calculated as the total amount required based on the subleaseagreements with end-tenants, rounding to the nearest million yen.
(Note 5) The total leasable area represents the total of gross floor area considered to be leasable based on the lease agreements
for building or floor plans as of November 30, 2019 of each property other than properties of which we acquire only
land, and gross land area considered to be leasable based on the lease agreement for land or land plans as ofNovember 30, 2019 of each property of which we acquire only land.
(Note 6) The total leased area is equal to the total of leased area presented in each lease agreement for properties held as ofNovember 30, 2019. For properties with master lease agreements, counted is the total of the area of properties forwhich sublease agreements are concluded with end-tenants and that are actually subleased.
(Note 7) The occupancy rate is calculated by dividing total leased area for each property by the total leasable area as ofNovember 30, 2019, rounding to the nearest tenth. The subtotal and total are calculated by dividing aggregate leased
area by aggregate leasable area, rounding to the nearest tenth.
(Note 8) As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, DECKS Tokyo Beach, Tokyu Plaza Ginza (Land),Q plaza HARAJUKU, and Shiodome Building, the figures are in proportion to the pro rata share of our trust
beneficiary co-ownership interests (jun kyōyū-mochibun) (75%, 50%, 49%, 30%, 60% and 35%, respectively).
However, the numbers of tenants provided are the numbers for each whole building.
(Note 9) Since we have not obtained permission from the tenant of this property to release the information, the information is
not disclosed.
(Note 10) The calculation of total leasable area and total leased area for icot Omori includes part of an external bicycle parking
lot (approximately 21 m2) and part of a common area on the second floor (approximately 28 m2).
(Note 11) For lease agreements with end-tenants that have been asked to be terminated or cancelled, or for which the rent has
not been paid, number of tenants, contracted rent (annual), leasehold and guarantee deposit, total leased area andoccupancy rate are shown in the above table if these agreements continued as of November 30, 2019, assuming thatthe lease agreements with the end-tenants remained effective; the same shall apply hereinafter.

- 44 -

(B) Capital expenditure for assets under managementa. Scheduled capital expenditure
The following table shows major estimated capital expenditure for renovation work, etc. that theInvestment Corporation plans to conduct for assets held in the 16th fiscal period as of November 30,
2019. The estimated construction cost below includes the portion expensed for accounting purposes.
Name of real
property(Location)

Estimated construction cost
(Millions of yen)
PurposeScheduled period

TotalamountPayment
for theperiodTotalamountpaid

Osaka Nakanoshima Complete replacementof elevator machinery From December 2019
Building
to April 2020and equipment(Osaka, Osaka)

190

–

–

Luogo Shiodome(Minato, Tokyo)

Large-scale repair
work

From December 2020
to May 2020

83

–

–

A-PLACE
Bashamichi(Yokohama,
Kanagawa)

Large-scale repair
work

From May 2020
to November 2020

80

–

–

A-PLACE Gotanda
Maintenance of outer
Ekimaewall(Shinagawa, Tokyo)

From May 2020
to November 2020

72

–

–

A-FLAGDAIKANYAMA
WEST(Shibuya, Tokyo)

From December 2019
to May 2020

62

–

–

Renovation work for
TLC Ebisu Building
mechanical parking(Shibuya, Tokyo)
facility

From October 2021
to November 2021

62

–

–

TLC Ebisu Building Installation of LED
lighting(Shibuya, Tokyo)

From May 2020
to September 2020

59

–

–

A-PLACE
Shinbashi Ekimae(Minato, Tokyo)

From April 2020
to May 2020

50

–

–

From December 2019
to May 2020

41

–

–

Osaka Nakanoshima Repair of lavatory
From March 2020
Building
plumbing for 12th andto May 2020
(Osaka, Osaka)
13th floors

32

–

–

Osaka Nakanoshima Repair of lavatory
From March 2020
Building
plumbing for 14th andto May 2020
(Osaka, Osaka)
15th floors

32

–

–

Renewal of pneumatic
A-FLAG SAPPORO
From March 2020
automatic control(Sapporo, Hokkaido)
to May 2020
equipment

31

–

–

Large-scale repair
work

Renewal of outdoor
air conditioning units

Renewal of rainwaterdrain pipes and hot
A-FLAG SAPPORO
water main pipes for(Sapporo, Hokkaido)
high-rise building(Second period)- 45 -Name of real
property(Location)

Estimated construction cost
(Millions of yen)
PurposeScheduled period

TotalamountPayment
for theperiodTotalamountpaid

Maintenance of
mechanical parking
equipment (vertical
EDGE Shinsaibashi
rotary equipment)(Osaka, Osaka)
Replacement, etc. ofintermediate chain
guide rails

From December 2019
to May 2020

30

–

–

Overhaul of
A-FLAG SAPPORO
mechanical parking(Sapporo, Hokkaido)
facility system

From March 2020
to May 2020

26

–

–

Tokyu Plaza
Omotesando
Harajuku(Shibuya, Tokyo)

From February 2020
to February 2020

23
(Note)––

Renewal of air
conditioning units for
From March 2020
A-FLAG SAPPORO small banquet halls(Sapporo, Hokkaido) (conversion to gasto May 2020
heat pump (GHP) air
conditioning systems)

22

–

–

Osaka Nakanoshima
From February 2020
Renewal of capacitors
Building
to February 2020
(Osaka, Osaka)

19

–

–

A-FLAG
BIJUTSUKAN
DORI(Minato, Tokyo)

Renewal of air
conditioning units

19

–

–

DECKS Tokyo
Beach(Minato, Tokyo)

Measures for business
continuity
planning (BCP) and
From December 2019
redundancy of power to March 2020
generator operationtime

18(Note)––A-PLACE
Bashamichi(Yokohama,
Kanagawa)

Construction to
repartition private
areas

From December 2019
to December 2019

17

–

–

A-FLAG SAPPORO Replacement of(Sapporo, Hokkaido) elevators

From March 2020
to May 2020

17

–

–

Partial renovation of
A-PLACE Aoyama
central monitoring(Minato, Tokyo)
panel

From March 2020
to May 2020

15

–

–

Renewal of deck forrooftop garden“Omohara forest”

From January 2020
to January 2020

A-PLACE
Ebisu Minami(Shibuya, Tokyo)

Maintenance of
outdoor air
conditioning units

From February 2020
to May 2020

12

–

–

DECKS Tokyo
Beach(Minato, Tokyo)

Renovation of signs

From December 2019
to December 201911(Note)––

icot Nakamozu(Sakai, Osaka)

Application of colored From March 2020
asphalt coating
to May 2020

10

–

–

- 46 -

Estimated construction cost
(Millions of yen)

Name of real
property(Location)

PurposeShiodome Building(Minato, Tokyo)

Replacement of shutoff valve for heatsource water (First
period)Shiodome Building(Minato, Tokyo)

Replacement of pipes
for kitchen waste
water system(Note)

Scheduled period

TotalamountPayment
for theperiodTotalamountpaid

From October 2019
to January 2020

10(Note)––

From October 2019
to January 2020

10(Note)––The shown estimated construction cost with regard to Tokyu Plaza Omotesando Harajuku, DECKS Tokyo
Beach and Shiodome Building is the amount equivalent to the ratio of the Investment Corporation’s coownership interests of real estate trust beneficiary (75%, 49% and 35%, respectively).

- 47 -

b. Capital expenditure during the fiscal period
For assets held by the Investment Corporation in the 16th fiscal period, construction work
conducted by the Investment Corporation during the fiscal period ended November 30, 2019 that
falls into capital expenditure is as follows. The capital expenditure for the fiscal period ended
November 30, 2019 amounted to ¥640 million, and repair and maintenance expenses that were
accounted for as expense in the fiscal period ended November 30, 2019 came to ¥436 million. On
aggregate, construction work of ¥1,076 million was carried out during the fiscal period.
Name of real property(Location)

Purpose

PeriodConstruction cost
(Millions of yen)icot Omori(Ota, Tokyo)

Large-scale repair work

From June 2019
to November 2019

90

A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of emergency
power generators

From April 2019
to August 2019

89

Osaka Nakanoshima
Building(Osaka, Osaka)

Replacement of elevator(elevator No. 8)

From June 2019
to August 2019

53

Osaka Nakanoshima
Building(Osaka, Osaka)

Replacement of elevator(elevator No. 7)

From September 2019
to November 201945

A-FLAG SAPPORO(Sapporo, Hokkaido)

Renewal of power control
board (Second period)

From August 2019
to November 201930

A-FLAG SAPPORO(Sapporo, Hokkaido)

Replacement of escalators(four escalators)

From October 2019
to November 2019

25

A-FLAG SAPPORO(Sapporo, Hokkaido)

Renewal of air conditioning
units and FCUs

From October 2019
to November 201925

Osaka Nakanoshima
Building(Osaka, Osaka)

Repair of lavatory plumbingfor 10th and 11th floors

From September 2019
to November 201919

Shiodome Building(Minato, Tokyo)

Inspection and maintenanceof emergency power
generation equipment, andreplacement of deteriorated
parts

From September 2019
to September 201918
(Note)DECKS Tokyo Beach(Minato, Tokyo)

Environment-related
improvement work

From November 2019
to November 201918
(Note)

Kobe Kyu Kyoryuchi
25Bankan(Kobe, Hyogo)

Renovation of multilevel car
park system

From November 2019
to November 2019

17

A-PLACE Gotanda
Ekimae(Shinagawa, Tokyo)

Installation of LED lighting in From August 2019private areas
to November 2019

14

A-PLACE Shinbashi(Minato, Tokyo)

Renewal of central
monitoring equipment

10

Other

180
Total

(Note)

From July 2019
to November 2019640

The shown construction cost with regard to DECKS Tokyo Beach and Shiodome Building is the amountequivalent to the ratio of the Investment Corporation’s co-ownership interests of real estate trust
beneficiary (49% and 35%, respectively).

- 48 -

(C) Information concerning major tenants
a. Summary of major tenants
For assets held in the 16th fiscal period, the table below shows tenants whose leased area accounts
for 10% or more of the total leased area in the entire portfolio (major tenants) based on the data asof November 30, 2019. The forms of agreements with the tenants in the table are ordinary leaseagreements.
As for certain assets held, the Investment Corporation has entered into lease agreements (master
lease agreements) with Tokyu Community Corp. and Tokyu Land SC Management Corporation
with the objective of allowing them to be master lease companies and sublease the leased assets to
end-tenants. The table below shows information on the major tenants with master lease agreements
based on the data as of November 30, 2019. Rents received by the Investment Corporation from themaster lease companies are equal to the rents received by these companies from sublessees (endtenants) (pass-through master lease), and such rents are not guaranteed.

TenantTokyu Community
Corp.

Business

Property nameLeased area (m2)(Note 1)

Contracted rent
(Annual)(Millions ofyen)(Note 2)

Leasehold andguarantee
deposit(Millions ofyen)(Note 3)

Expiration date
(Note 4)

A-FLAG KOTTO DORI

2,656.53

234

181

December 31, 2026

TLC Ebisu Building

7,342.60

632

548

May 31, 2025

A-PLACE Ebisu Minami

7,950.49733

605

May 31, 2025

A-PLACE Yoyogi

3,106.17251

231

May 31, 2025

A-PLACE Aoyama

7,303.69

568

534

May 31, 2025

Luogo Shiodome

4,476.35

332

293

May 31, 2025

A-PLACE Ikebukuro

3,409.73(Note 5)(Note 5)

May 31, 2025

A-PLACE Shinbashi

5,052.14370

310

May 31, 2025

A-PLACE Gotanda

4,028.69

368

338

May 31, 2025

A-PLACE Shinagawa

2,986.36250

234

May 31, 2025

OSAKI WIZTOWER

7,193.28

668

668

May 31, 2025

4,010.69

336

245

May 31, 2025

A-PLACE Shibuya Konnoh

2,995.72

225

155

September 30, 2025

A-PLACE Gotanda Ekimae

4,316.89347

300

June 30, 2026

A-PLACE Shinagawa
Higashi

14,658.98

989

894

March 31, 2027

A-PLACE Shinbashi Ekimae

6,484.57781

600

May 31, 2028

A-PLACE Kanayama

9,314.90

528

427

May 31, 2025

Osaka Nakanoshima Building

20,226.77

980

690

November 30, 2024

Umeda Gate Tower

13,624.49

850

586

April 30, 2028

A-PLACE Bashamichi

9,775.50

330

219

October 31, 2026

Commercial Mall Hakata

9,131.82

331

150

March 31, 2027

150,046.36

–

–

–

Real EstateManagement A-PLACE Ebisu Higashi

Total- 49 -

Tenant

Tokyu Land SC
Management
Corporation(Note 1)

(Note 2)

(Note 3)(Note 4)(Note 5)(Note 6)

Business

Property nameLeased area (m2)(Note 1)

Contracted rent
(Annual)(Millions ofyen)(Note 2)

Leasehold andguarantee
deposit(Millions ofyen)(Note 3)

Expiration date
(Note 4)

June 30, 2022

Q plaza EBISU

4,024.88

485

475

Kyoto Karasuma Parking
Building

21,616.04(Note 5)(Note 5)

November 30, 2024

Kobe Kyu Kyoryuchi
25Bankan

19,653.90

1,254

1,431

August 31, 2023

A-FLAG SAPPORO

21,137.10

620

123

December 31, 2023

A-FLAG SHIBUYA

3,403.07

420

179

December 31, 2023

Q plaza SHINSAIBASHI

2,820.23

671

433

December 31, 2025

A-FLAG BIJUTSUKAN
DORI

1,994.65

239

241

December 31, 2026

A-FLAG DAIKANYAMA
WEST

2,579.08(Note 5)(Note 5)

December 31, 2026

2,536.75

187

125

June 30, 2027

DECKS Tokyo Beach(Note 6)15,993.36

651

488

January 31, 2028

Q plaza HARAJUKU(Note 6)

3,378.49456

340

January 31, 2029

icot Nakamozu

28,098.02

619

430

June 30, 2022

icot Mizonokuchi

14,032.05(Note 5)100

June 30, 2022

Real EstateManagement A-FLAG KITASHINSAIBASHI

icot Tama Center

5,181.58

240

237

November 30, 2024

icot Omori

6,209.79

388

359

December 31, 2023

Market Square Sagamihara

15,152.42(Note 5)(Note 5)January 31, 2025

Total

167,811.41

–

–

–

The leased area is the leased area to end-tenants in respect to the leased area provided in the master lease agreement
as of November 30, 2019 where the tenant is the master lease company and sublessor, rounding to the nearest
hundredth.
Under master lease contracts concluded with tenants, for properties of which the master lease rent payable by thetenant equals to the rent payable by the end-tenant to the tenant, the contracted rent (annual) for each property is
calculated by multiplying the monthly rent (limited to rooms which were occupied by tenants as of November 30,2019), including common service fee and excluding usage fee for warehouses, signboards and parking lots, and also
excluding revenue-based rents, regardless of free rents and rent holidays as of November 30, 2019, as indicated in thesublease agreement concluded with the end-tenant as of November 30, 2019 by 12, rounding to the nearest million
yen.
The leasehold and guarantee deposit is calculated as the total amount on the sublease agreement with the end-tenant
as of November 30, 2019 (limited to leasehold and guarantee deposit based on the lease agreement for leased
property that was occupied by the tenant as of November 30, 2019), rounding to the nearest million yen, where thetenant is the master lease company and sublessor.
The expiration date is the date provided in the lease agreement where the tenant is the lessee, including where thetenant is a sublessor and master lease company under a sublease agreement. Concerning the method of renewing themaster lease agreement entered into with the above-mentioned major tenant who is the master lease company,
assuming that the lessor or lessee has not expressed in writing their intention to refuse renewal at a time that is at least
three full months before the expiry of the lease agreement, the agreement shall be renewed for a further two years
under the same conditions, and the same will apply thereafter.
Since we have not obtained permission from the tenant of this property to release the information, the information is
not disclosed.
As for DECKS Tokyo Beach and Q plaza HARAJUKU, the figures are in proportion to the pro rata share of our trust
beneficiary co-ownership interests (jun kyōyū-mochibun) (49% and 60%, respectively).

- 50 -

b. End-tenants in the top 10 in terms of total leased area
For assets held by the Investment Corporation, the following table shows end-tenants ranked in the
top 10 in terms of total leased area in the entire portfolio as of November 30, 2019.
End-tenants

Property name

Total leased area (m2)(Note 1)

Lease expiration date

Form of agreement(Note 2)
Fixed-term building leaseagreement
General fixed-termleasehold land agreement
Ordinary leasehold land
agreement
Fixed-term business-use
lease agreement
Fixed-term building leaseagreement
Fixed-term building leaseagreement

Tokyu Hotels Co., Ltd.

Tokyu Plaza Akasaka
A-FLAG SAPPORO

30,182.69

October 31, 2021

Sumitomo Mitsui Trust
Bank, Limited (Note 3)

Tokyu Plaza Ginza (Land)
TAMACHI SQUARE (Land)
Amagasaki Q’s MALL (Land)

29,883.44(Note 4)January 9, 2089
May 31, 2074
January 31, 2042

Kohnan Shoji Co., Ltd.

icot Nakamozu

26,529.03

July 11, 2027

Times24 Co., Ltd.

Kyoto Karasuma Parking Building

21,224.14–

Plan∙Do∙See Inc.

Kobe Kyu Kyoryuchi 25Bankan

14,195.42–

Room’s-Taishodo

icot Mizonokuchi

14,032.05

July 24, 2023

K’S HOLDINGSCORPORATION

Market Square Sagamihara

11,863.92

June 30, 2034

NTT Communications
Corporation

Shiodome Building

10,336.62–

YANMAR Co., Ltd.

Umeda Gate Tower

7,870.86––

A-PLACE Shinagawa Higashi

6,100.88(Note 5)

April 30, 2020

Ordinary building leaseagreement

Swing Corporation(Note 1)

(Note 2)
(Note 3)(Note 4)(Note 5)(Note 6)–
Fixed-term building leaseagreement
Fixed-term building leaseagreement–

The total leased area is equal to the total leased area in each property under the lease agreement with the end-tenant asof November 30, 2019. As for Tokyu Plaza Akasaka, Tokyu Plaza Ginza (Land) and Shiodome Building, the figure isbased on the amount in proportion to the pro rata share of our trust beneficiary co-ownership interests (jun kyōyūmochibun) as of November 30, 2019 (50%, 30% and 35%, respectively).
The form of agreement is equal to the form of agreement described in the lease agreement with the end-tenants as ofNovember 30, 2019.
Tenant is the trustee of the building on the land; SPADE HOUSE Limited Liability Company is the trust beneficiaryunder such trust of Tokyu Plaza Ginza (Land); Tokyu Land Corporation is the trust beneficiary under such trust of
TAMACHI SQUARE (Land) and Amagasaki Q’s MALL (Land).
Total leased area for Tokyu Plaza Ginza (Land), TAMACHI SQUARE (Land) and Amagasaki Q’s MALL (Land) isin respect of the land.
As of October 31, 2019, a new ordinary building lease agreement with a lease period of February 1, 2020 to April 30,
2022 and an increased area of 387.90 m2 has been newly entered into, but there is no change in the order of properties
listed by leased area. Also, the total leased area after the increase is 6,488.78 m2.
Since we have not obtained permission from the tenant of the properties to release the information, the information
missing from this table is not disclosed.

- 51 -

(D) Overview of lease and profit and loss
16th fiscal period (From June 1, 2019 to November 30, 2019)(Unit: Thousands of yen)
UR-6

Property number

UR-1

UR-2

UR-3

UR-5

Property name

Tokyu Plaza
Omotesando
Harajuku(Note 1)Tokyu Plaza
Akasaka(Note 1)

Q plaza EBISU

Kyoto Karasuma
Parking Building

183

183

183

183

2

1,115,985

667,634

277,046(Note 3)

1,545

1,057,834

570,519242,864(Note 3)493

Other leasing business revenue

58,15097,11534,182(Note 3)

1,051

b. Expenses related to leasing business

240,109

270,492

63,96047,261

4,543

Management operation expenses

84,37983,045

16,355

3,938

43

Utilities expenses

33,49876,04826,973–71

Tax and public dues

63,65069,463

9,003

36,378

4,436

229

499

90

190

4

4,212

33,418

748

5,831

–

Number of business days in the 16th
fiscal period
a. Real estate leasing business revenues
Leasing business revenue

Insurance
Repair and maintenance expenses
Other expenses related to leasing
business

A-FLAGAKASAKA(Notes 1, 2)

54,1398,017

10,788922(11)c. NOI (a – b)875,875

397,142

213,086(Note 3)

(2,997)d. Depreciation

52,09038,62518,301

15,810670

Profit (loss) from leasing business(c – d)823,784

358,516

194,784(Note 3)

(3,668)Property number

UR-7

UR-8

UR-9

UR-10

(Unit: Thousands of yen)
UR-11

Property name

Kobe Kyu
Kyoryuchi
25Bankan

Q plaza
SHINSAIBASHI

A-FLAG KOTTO
DORI

Number of business days in the 16th
fiscal period
a. Real estate leasing business revenues

A-FLAG SAPPORO A-FLAG SHIBUYA

183

183

183

183

183

743,862

636,061

220,285

358,871

124,782
118,461

Leasing business revenue

659,626

556,080

209,971

336,137

Other leasing business revenue

84,236

79,981

10,31322,733

6,321

b. Expenses related to leasing business

207,818

294,997

43,90652,49937,146

Management operation expenses

76,993

119,741

12,378

8,028

8,770

Utilities expenses

64,35670,528

8,266

17,014

6,834

Tax and public dues

47,86824,854

11,417

15,66013,876

781

596

60

77

89

Repair and maintenance expenses

11,32665,224

7,598

4,133

4,388

Other expenses related to leasing
business

6,491

14,051

4,184

7,585

3,188

c. NOI (a – b)

536,043

341,064

176,379

306,372

87,635d. Depreciation

121,853

70,927

8,327

16,7405,019

Profit (loss) from leasing business(c – d)414,189

270,137

168,051

289,631

82,616

Insurance- 52 -

Property number

UR-12

UR-13

UR-14

UR-15

(Unit: Thousands of yen)
UR-16

Property name

A-FLAG
BIJUTSUKAN
DORI

A-FLAGDAIKANYAMA
WEST

A-FLAG KITASHINSAIBASHIDECKS Tokyo
Beach (Note 1)

Tokyu Plaza Ginza(Land) (Note 1)

Number of business days in the 16th
fiscal period
a. Real estate leasing business revenues

183

183

183

183

183

128,746(Note 3)105,939

620,460

571,500

119,079(Note 3)

95,741490,884

571,500

Other leasing business revenue

9,666(Note 3)

10,197

129,575

0b. Expenses related to leasing business

35,48032,32923,581

348,078

302

Management operation expenses

4,822

11,973

5,379

105,185–

Utilities expenses

8,336

300

9,637

118,748–

Tax and public dues

Leasing business revenue

2,177

13,7586,319

55,419–Insurance

44

73

74

678

–

Repair and maintenance expenses

821

2,823

107

20,739–Other expenses related to leasing
business

19,278

3,400

2,063

47,306

302

c. NOI (a – b)

93,265(Note 3)82,357272,382

571,197

d. Depreciation

6,526

2,710

4,671

22,535–

Profit (loss) from leasing business(c – d)86,739(Note 3)

77,685249,846

571,197

TO-1

TO-2

TO-3

(Unit: Thousands of yen)
TO-4

A-PLACE
Ebisu Minami

A-PLACE
YoyogiA-PLACE
Aoyama

183

183

183

Property number
Property name

UR-17

Q plaza HARAJUKUTLC Ebisu Building(Notes 1)

Number of business days in the 16th
fiscal period
a. Real estate leasing business revenues

183

183

243,826

339,812389,664

135,088

315,772

Leasing business revenue

226,589

320,761

371,844

126,961

294,989

Other leasing business revenue

17,236

19,05017,8198,127

20,782b. Expenses related to leasing business

38,45476,730138,91545,71570,011

Management operation expenses

18,65926,86633,957

11,507

20,226

Utilities expenses

15,935

19,077

23,118

9,589

20,241
23,344–17,08932,093

10,618Insurance

Tax and public dues

110

234

300

101

220

Repair and maintenance expenses

405

2,562

30,677

6,533

1,966

Other expenses related to leasing
business

3,345

10,90018,769

7,365

4,011

c. NOI (a – b)

205,372

263,082

250,749

89,373245,761

d. Depreciation

6,424

42,134

31,293

15,42922,414

198,947

220,947

219,455

73,943

223,346

Property number

TO-5

TO-6

TO-7

TO-8

(Unit: Thousands of yen)
TO-9

Property name

Luogo Shiodome

TAMACHISQUARE (Land)

A-PLACE
Ikebukuro

A-PLACE
Shinbashi

A-PLACE
Gotanda

183

183

183

Profit (loss) from leasing business(c – d)Number of business days in the 16th
fiscal period
a. Real estate leasing business revenues

183

183

182,51762,502(Note 3)

206,522

193,353

Leasing business revenue

168,827

62,502(Note 3)

191,880

182,232

Other leasing business revenue

13,689–(Note 3)

14,641

11,120b. Expenses related to leasing business

51,028

9,383

35,12566,20044,043

Management operation expenses

12,775–

11,39917,76715,016

Utilities expenses

14,125–

9,941

13,635

11,014

Tax and public dues

19,201

9,130

10,63815,343

13,986

190

–

101

163

131

Repair and maintenance expenses

1,065

–

708

13,576

2,030

Other expenses related to leasing
business

3,670

252

2,337

5,713

1,865

c. NOI (a – b)131,489

53,118(Note 3)140,322

149,309

d. Depreciation

27,356–

20,68523,036

26,844

Profit (loss) from leasing business(c – d)104,132

53,118(Note 3)

117,285

122,465

Insurance- 53 -

Property number

TO-10

TO-11

TO-12

TO-13

(Unit: Thousands of yen)
TO-14

Property name

A-PLACE
Shinagawa

OSAKI
WIZTOWER

Shiodome Building(Note 1)

A-PLACE Ebisu
HigashiA-PLACE Shibuya
Konnoh183

183

Number of business days in the 16th
fiscal period
a. Real estate leasing business revenues

183

183

183

129,968

354,018

1,568,557

176,664

117,752

125,083

335,046

1,479,423

167,157

112,094

Other leasing business revenue

4,884

18,971

89,134

9,507

5,657

b. Expenses related to leasing business

46,19496,761

373,423

41,72740,426

Management operation expenses

19,712

59,345

104,957

12,841

12,616

Utilities expenses

5,699

12,75685,269

8,973

6,453

Tax and public dues

11,47522,663

120,812

13,831

9,479

89

376

911

120

90

Repair and maintenance expenses

4,116

–

35,1893,483

942

Other expenses related to leasing
business

5,101

1,618

26,282

2,477

10,842c. NOI (a – b)

83,773

257,256

1,195,134

134,936

77,325d. Depreciation

9,177

48,275

150,787

23,644

12,979Profit (loss) from leasing business(c – d)74,596208,980

1,044,347

111,292

64,346

TO-16

TO-17

AA-1

Leasing business revenue

Insurance

Property number
Property name
Number of business days in the 16th
fiscal period
a. Real estate leasing business revenues

TO-15

A-PLACE Gotanda A-PLACE Shinagawa A-PLACE Shinbashi
EkimaeHigashiEkimae183

183(Unit: Thousands of yen)
AA-2

Amagasaki Q’s
MALL (Land)

icot Nakamozu

183

183

183

190,171534,258

400,396356,784

310,521

Leasing business revenue

179,462

489,450

381,009356,784

310,491

Other leasing business revenue

10,70944,807

19,386–30

b. Expenses related to leasing business

60,762

143,684

88,27056,412

49,033
6,008

Management operation expenses

13,90949,63819,127–

Utilities expenses

11,951

37,345

19,481–30

Tax and public dues

18,067

48,29038,14356,15930,338Insurance

141

563

190

–

278

Repair and maintenance expenses

4,318

2,686

7,078

–

10,970

Other expenses related to leasing
business

12,372

5,161

4,249

252

1,408

c. NOI (a – b)

129,409

390,573

312,125

300,371

261,487

d. Depreciation

12,05130,65252,536–

34,644

Profit (loss) from leasing business(c – d)117,358

359,920

259,589

300,371

226,842

Property number

AA-4

AA-5

AA-6

AA-7

Property nameicot Mizonokuchi

icot Tama Center

A-PLACE
Kanayama

Osaka Nakanoshima
Building

Number of business days in the 16th
fiscal period
a. Real estate leasing business revenues

183

183

(Unit: Thousands of yen)
AA-8
icot Omori

183

183

183

(Note 3)

146,260

294,188544,238

234,045

Leasing business revenue(Note 3)135,075

268,607514,148

202,800

Other leasing business revenue(Note 3)

11,18425,58130,08931,245b. Expenses related to leasing business

16,77958,924

90,232

211,287

54,745

Management operation expenses

2,399

16,08926,341

56,073

8,872–

12,82625,54644,59530,01010,073

11,737

26,64653,355

12,489

119

182

305

906

119

Repair and maintenance expenses

3,419

16,9834,243

47,006

1,963

Other expenses related to leasing
business

768

1,105

7,150

9,349

1,290

Utilities expenses
Tax and public dues
Insurancec. NOI (a – b)(Note 3)87,335203,955

332,951

179,299

d. Depreciation

8,345

18,96751,94872,556

17,688(Note 3)68,367152,007260,394

161,611

Profit (loss) from leasing business(c – d)- 54 -

(Unit: Thousands of yen)
Property number

AA-9

Property nameMarket Square
Sagamihara

Number of business days in the 16th
fiscal period
a. Real estate leasing business revenues

183

AA-10

AA-11

AA-12

AA-13

Umeda Gate Tower

A-PLACE
Bashamichi

Commercial Mall
HakataEDGE Shinsaibashi

183

183

183

183

(Note 3)475,469

185,932

220,092

487,585

Leasing business revenue(Note 3)434,377

165,148

172,423445,383

Other leasing business revenue(Note 3)41,092

20,78447,66842,202b. Expenses related to leasing business

36,403

132,198

76,18789,567

124,600

Management operation expenses

15,854

31,12321,027

21,87845,724

Utilities expenses

5,196

32,91723,18027,97644,479Tax and public dues

13,726

34,775

17,135

12,764

0

159

442

358

191

635

Repair and maintenance expenses–

20,386

7,811

19,02626,016

Other expenses related to leasing
business

1,466

12,551

6,675

7,730

7,744

c. NOI (a – b)(Note 3)

343,271

109,745

130,524

362,984

d. Depreciation

23,753

68,39130,896

15,225

15,849Profit (loss) from leasing business(c – d)(Note 3)274,879

78,848115,299

347,135

Insurance(Note 1)

(Note 2)
(Note 3)

As for Tokyu Plaza Omotesando Harajuku, Tokyu Plaza Akasaka, A-FLAG AKASAKA, DECKS Tokyo Beach,Tokyu Plaza Ginza (Land), Q plaza HARAJUKU and Shiodome Building, the figures are in proportion to the pro rata
share of our trust beneficiary co-ownership interests (jun kyōyū-mochibun) (75%, 50%, 50%, 49%, 30%, 60% and35%, respectively).
Co-ownership interests of 50% have been transferred as of June 3, 2019. Therefore, figures up to the day prior to thetransfer date are presented.
Since we have not obtained permission from the tenant of this property to release the information, the information is
not disclosed.

- 55 -